Federal Reserve Bulletin, 1985-03

VOLUME 71 • NUMBER 3 • MARCH 1985 FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • S. David Frost • Griffith L. Garwood • James L. Kichline • Edwin M. Truman Naomi P. Salus, Coordinator The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 137 THE THRIFT INDUSTRY IN TRANSITION Admission of six state banks to membership in the Federal Reserve System. The economic climate of the 1980s has generated substantial changes in the struc- 163 LEGAL DEVELOPMENTS ture of the thrift industry. Various bank holding company, bank ser- 157 INDUSTRIAL PRODUCTION vice corporation, and bank merger orders; and pending cases. Output rose 0.6 percent in December. 159 ANNOUNCEMENTS Ai FINANCIAL AND BUSINESS STATISTICS Publication of "Consumer Handbook on A3 Domestic Financial Statistics Adjustable Rate Mortgages." A43 Domestic Nonfinancial Statistics Preliminary figures available for income of A51 International Statistics Federal Reserve Banks. A67 GUIDE TO TABULAR PRESENTATION, Revision of list of OTC stocks subject to STATISTICAL RELEASES, AND SPECIAL margin regulations. TABLES Revisions to statistical tables in the BULLE- TIN. A68 BOARD OF GOVERNORS AND STAFF Deletion of two tables from the statistical A70 FEDERAL OPEN MARKET COMMITTEE section of the BULLETIN. AND STAFF; ADVISORY COUNCILS Price increase for the Call and Income Subscription Tapes. All FEDERAL RESERVE BOARD PUBLICATIONS Proposed actions on the lifting of some restrictions on the nonbank bank affiliates A75 INDEX TO STATISTICAL TABLES of bank holding companies, and on establishing the framework for bank holding All FEDERAL RESERVE BANKS, BRANCHES, companies to engage in real estate invest- AND OFFICES ment activities. Changes in Board staff. A78 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition Patrick I. Mahoney and Alice P. White of the of capital and the restructuring of assets by the Board's Division of Research and Statistics pre- thrift industry are still in the early stages. pared this article. Diana R. Goodman prepared The earnings of thrift institutions historically the appendix. have been sensitive to fluctuations in interest rates. Before the deregulation of deposit liabil- The economic climate of the 1980s has generated ities, thrift institutions suffered outflows, resubstantial changes in the structure of the thrift duced liquidity, and lower earnings whenever industry.1 Thrift institutions suffered widespread market interest rates rose above ceiling rates on losses in 1981 and 1982 as market interest rates deposits. As deregulation progressed, new types rose to very high levels; with the lower average of accounts with rates either indexed to market levels of interest rates prevailing in 1983 and interest rates or not limited were authorized. 1984, the industry as a whole has become mar- These new instruments helped thrift institutions ginally profitable. Nevertheless, these earnings attract and retain deposits, but at a price. Instituproblems materially affected the regulatory envi- tions were forced to absorb cost increases as ronment and the structure of the industry. The low-yielding passbook deposits were shifted to large losses of the early 1980s depleted capital the new accounts, and their cost of funds rapidly positions, and many firms failed or were merged began to adjust to changes in market interest out of existence. Legal and regulatory changes rates. The return on assets, primarily fixed-rate implemented to forestall future earnings stresses mortgage loans with long maturities, remained have yielded mixed results to date; the rebuilding relatively insensitive to interest rate movements. Legal and regulatory restrictions, as well as their earlier profitable experience with mortgage lend- 1. The term "thrift industry" is used to denote savings and ing, prevented most thrift institutions from shortloan associations and savings banks, both federally and state ening the average maturity of their assets. chartered. Credit unions, another segment of the thrift industry, are not discussed because their portfolios and regulatory During the 1980s, steps have been taken to treatment differ substantively from those of savings and loan address this fundamental imbalance in the asset associations and savings banks. and liability structure of thrift institutions and to Structural changes within the thrift industry have blurred the distinction between savings and loan associations and assist them in raising new capital. They have savings banks. Legislation enacted in 1982 facilitated the been given new and expanded powers in the conversion of existing savings and loan associations and areas of commercial and consumer lending in mutual savings banks to a relatively new class of thrift institution, the federal savings bank. As a result of charter addition to authority to issue long-term mortchanges, the Federal Savings and Loan Insurance Corpora- gages with adjustable rates; and the procedures tion now insures some of these new federal savings banks as have been eased for the conversion of mutual well as savings and loan associations. Federal Home Loan Bank Board data that are used in this article include all institutions to the stock form of organization, "FSLIC-insured institutions" rather than simply insured thus enabling them to raise additional capital. savings and loan associations. Since the majority of FSLIC- These measures have provided a framework for insured federal savings banks were formerly savings and loan associations, this overall category corresponds roughly to the fundamental changes in the balance-sheet struchistoric savings and loan industry. Data on savings banks ture of the thrift industry, but the transition is from the National Council of Savings Institutions include proceeding slowly. The assets of thrift instituinformation on state-insured savings banks as well as on some other federally insured savings banks, and these data tions continue to be dominated by fixed-rate correspond roughly to the historic mutual savings bank instruments, even though recent lending activity industry. Because these institutions are no longer exclusively for home mortgages has been predominantly mutual, that term has been dropped and the designation with adjustable rates. Relatively few institutions "savings bank" has been adopted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 Federal Reserve Bulletin • March 1985 have moved aggressively to increase the share of 1. After-tax net income of thrift institutions nonmortgage loans in their portfolios. Indeed, Amounts in billions of dollars; percentages at annual rates the long-term nature of thrift institutions' assets, FSLIC-insured many of which are now below par value, makes institutions Savings banks rapid structural adjustments difficult. YYeeaarr Percent of Percent of In contrast, the thrift industry continues to Amount average Amount average assets assets experience large and rapid changes in the structure of its liabilities. The process of deregulating 1975 1.4 .47 .4 .38 the liabilities of depository institutions is virtual- 1976 2.3 .63 .6 .45 1977 3.2 .77 .8 .55 ly complete. The bulk of the new funds that thrift 1978 3.9 .82 .9 .58 1979 3.6 .67 .7 .46 institutions acquire are priced at market interest 1980 .8 .13 -.2 -.12 rates, and most of their existing small time 1981 -4.6 -.73 -1.4 -.82 deposits have already adjusted to market levels. 1982 -4.3 -.64 -1.3 -.73 1983 2.0 .26 .3 .15 Deposits in passbook savings accounts continue 1984:H1 1.0 .24 .1 .07 to decline gradually. The maturity of small time SOURCES. Federal Home Loan Bank Board and National Council of deposits appears to have lengthened slightly as Savings Institutions. thrift institutions have taken advantage of deregulation to raise the relative attractiveness of than in the previous year. Despite this dramatic deposits in certain maturity categories. Howev- improvement, current earnings are low comer, short-term managed liabilities, primarily large pared with the performance of the late 1970s. time deposits and repurchase agreements, also Institutions insured by the Federal Savings and have increased. In recent years, thrift institu- Loan Insurance Corporation (FSLIC) earned a tions have made little progress toward lengthen- return on average assets of 0.82 percent in 1978 ing the average maturity of their total liabilities, but only 0.24 percent in the first half of 1984. and at the same time, their funding costs are Earnings of savings banks were less than onemore sensitive to movements in market interest eighth of their level in 1978. rates. The deterioration in the earnings of thrift insti- The picture of the thrift industry that emerges tutions began in 1980 and accelerated in 1981 as is one of institutions responding to changing market interest rates rose to unusually high lev-: economic conditions within their traditional els. These rate movements, combined with the structure. Thrift institutions continue to fund deregulation of deposit liabilities, resulted in large holdings of longer-term mortgage assets sharp increases in the cost of funds. Between with shorter-term liabilities. For many institu- 1979 and 1981, the gross interest expense of tions, losses and an erosion of capital positions FSLIC-insured institutions rose from 63/4 percent hamper restructuring, while others still use strat- of assets to 10 percent, as shown in table 2. egies of asset and liability management that may Savings banks, which had a larger share of not be suited to the current economic climate. As deposits in rate-constrained passbook accounts, a result, the financial health of the thrift industry experienced a smaller increase in funding costs. will remain sensitive to market interest rates as Although market interest rates began declining in restructuring continues. 1982, the interest expense of thrift institutions continued to rise as greater proportions of their liabilities were shifted to accounts that were EARNINGS PERFORMANCE either ceiling free or indexed to market rates. A significant reduction in the cost of funds did not After losses in excess of $5!/2 billion in 1981 and occur until 1983, and it has been the major factor again in 1982, the thrift industry returned to contributing to the improved profitability of thrift profitability in 1983 with aggregate earnings of institutions. $2.3 billion (table 1). The industry remained The composition of the asset portfolios of profitable in the first half of 1984, although the thrift institutions, which continue to include earnings of savings banks were at a lower rate large amounts of long-term, fixed-rate mortgage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 139 assets, limits the change in gross operating in- (table 2). As thrift institutions shorten the intercome for a given change in market interest rates. val over which they can reprice their assets—for Rates of gross operating income did improve in example, by holding a larger proportion of adthe early 1980s as thrift institutions acquired justable-rate mortgages—gross operating income securities and made mortgage loans at the higher will become more variable as the yields on such prevailing interest rates. Nevertheless, these im- loans adjust with market interest rates. The provements were small, in part because aggre- spread between gross operating income and ingate mortgage activity declined as interest rates terest expense should become more stable, howrose. Moreover, the proportion of mortgage ever, reducing the sensitivity of operating earnloans repaid each year fell from the range of 12 to ings to changes in market interest rates. Methods 14 percent in the late 1970s to between 5 and 7 of managing interest rate risk, such as interest percent in 1981, limiting the funds available for rate swaps or hedging programs using financial reinvestment at higher yields. With prevailing futures and options, also can be used to produce market interest rates in 1983 and 1984 lower than smoother patterns of earnings. those in 1981 and 1982 and with legal changes FSLIC-insured thrift institutions only broke allowing institutions to enforce due-on-sale even on operations in 1983, but they still showed clauses, the repayment rate on the mortgage a profit as a result of nonoperating income generportfolio rose to 15 percent. The yield on the ated partially through the sale of assets. Savings mortgage portfolio improved as the funds from banks also reported substantial nonoperating inlower-yielding mortgages as well as new funds come. The opportunity to improve profitability were lent at higher interest rates. from sales of assets was one result of the large The liabilities of thrift institutions have a much number of mergers in 1981 and 1982, which are shorter effective maturity than their assets, and discussed in the appendix. Many of these mergthus liability yields adjust to movements of mar- ers involved an accounting technique in which ket interest rates more rapidly than asset yields. the assets of the acquired firm were reappraised At times of rising interest rates, such as 1981 and at the time of the merger at their fair market 1982, the result is a substantial drop in the net value, or marked to market; because many of interest margin—that is, the spread between these assets were revalued during periods of high gross operating income and interest expense interest rates, capital gains could be recognized 2. Income and expense as a percent of average assets at thrift institutions1 Annual rate Item 1979 1980 1981 1982 1983 1984:H1 FSLIC-insured institutions Gross operating income 9.03 9.50 10.29 10.69 10.66 11.10 Gross interest expense 6.77 8.03 10.00 10.51 9.02 9.19 Net interest margin 2.26 1.47 .29 .18 1.64 1.91 Noninterest expense 1.32 1.34 1.42 1.51 1.64 1.70 Net operating income (pretax) .94 .13 -1.12 -1.32 0 .22 Net nonoperating income (pretax) .02 .07 .15 .45 .34 .13 Taxes .29 .07 -.24 -.24 .08 .11 After-tax net income .67 .13 -.73 -.64 .26 .24 Savings banks Gross operating income 8.26 8.79 9.42 9.86 9.29 9.65 Gross interest expense 6.13 7.10 8.42 8.59 7.32 7.56 Net interest margin 2.13 1.69 1.00 1.27 1.97 2.09 Noninterest expense 1.47 1.77 1.96 2.13 1.89 2.01 Net operating income (pretax) .66 -.07 -.95 -.87 .08 .08 Net nonoperating income (pretax) -.02 -.02 .05 .12 .10 .08 I Taxes .18 .03 -.08 -.01 .03 .09 | After-tax net income .46 -.12 -.82 -.73 .15 .07 1. Details may not add to totals as a result of rounding. SOURCES. Federal Home Loan Bank Board and National Council of Savings Institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 Federal Reserve Bulletin • March 1985 1. Percentage of FSLIC-insured institutions percent to a historical low of 3.7 percent in 1982 posting losses (table 3). Capital positions improved in 1983 as a result of an increase in both retained earnings and equity issuance. Except for a slight improve- 75 ment in 1983, the capital ratio of savings banks also has declined continuously since 1979. The 50 low level of current earnings of thrift institutions, 25 combined with continuing growth in assets, has limited improvements in capital ratios. 1980 1982 1984 The deterioration in capital positions has been Semiannual data, 1979-83; quarterly data, 1984. especially notable at firms that have continued to SOURCES. Federal Home Loan Bank Board, Report of Condition incur losses. In June 1984, the ratio of net worth and Income. to total assets of FSLIC-insured institutions that were operating in the red was only 23/4 percent, through their sale when interest rates subse- and the capital ratio of unprofitable FDIC-inquently fell. The potential for generating income sured savings banks was only slightly higher in this manner is limited by the stock of salable (table 4). These figures contrast sharply with the assets. While the thrift industry in the aggregate has shown improvement in its earnings, disparities in 4. Net worth ratios of profitable and unprofitable the performance of various groups of firms with- thrift institutions, by size of institution, June 1984 in the industry still exist. Many firms continue to Net worth as a percent of assets experience losses and reductions in net worth. Total assets Unprofitable Profitable As shown in chart 1, almost one-fourth of (millions of dollars) firms firms FSLIC-insured institutions, more than 750 firms, FSLIC-insured institutions reported losses in the second quarter of 1984. This performance signifies a vast improvement More than 1,000 3.2 4.2 500-1,000 2.4 4.0 from that in the latter part of 1981, when 85 100-500 2.0 4.4 50-100 2.6 5.2 percent had losses, but it still represents a seri- Less than 50 3.6 5.8 All size classes 2.8 4.3 ous problem for many individual institutions. The losses incurred in 1981 and 1982 depleted FDIC-insured savings banks the capital accounts of thrift institutions. The More than 1,000 2.9 5.5 aggregate ratio of net worth to total assets at 500-1,000 3.3 6.3 100-500 3.5 6.6 FSLIC-insured institutions fell from more than 5 Less than 100 5.6 7.1 All size classes 3.0 6.0 3. Ratio of net worth to total assets SOURCE. The Report of Condition and Income, June 1984. at thrift institutions Percent respective ratios of 4.3 percent and 6.0 percent FSLIC-insured Year Savings banks institutions for profitable institutions of each type. Because of their weakened capital positions, institutions 1975 .. 5.8 7.0 1976 .. 5.6 6.7 that continue to experience losses are likely to 1977 .. 5.5 6.8 1978 .. 5.5 6.9 require regulatory assistance, such as a capital 1979 .. 5.6 7.1 infusion or an arranged merger. Locating suit- 1980 .. 5.3 6.6 able merger partners may be difficult, however, 1981 .. 4.3 5.7 1982 .. 3.7 5.3 because many of the firms are relatively large. 1983 ... 4.0 5.4 One-fourth of the savings banks operating in the 1984' 3.9 5.2 red had assets in excess of $1 billion, and these 1. June 1984. large institutions had the lowest capital ratios SOURCES. Federal Home Loan Bank Board and National Council of among FDIC-insured thrift institutions. Savings Institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 141 LIABILITIES OF THRIFT INSTITUTIONS these new indexed accounts, thrift institutions suffered direct increases in costs. Without the Movements in the cost of funds of thrift institu- new, more attractive accounts, some depositors tions are closely related to two factors: the probably would have moved the funds to market composition of their liabilities, including the instruments, but even with them, growth in savshare of accounts that are deregulated or are ings and small time deposits at thrift institutions indexed to market interest rates; and the pricing fell from an annual rate of 10 percent in 1978 to 3 policies of institutions, including the way deposit percent in 1981. Facing such sluggish deposit rates move relative to market interest rates. growth, thrift institutions began to rely more Before the late 1970s, thrift institutions funded heavily on managed liabilities consisting of Fedtheir assets largely with savings and small-de- eral Home Loan Bank borrowings and large time nomination time deposits, whose interest rates deposits. Market interest rates, and therefore the were constrained by ceilings. Managed liabilities cost of managed liabilities and deregulated deplayed only a small role, and they were primarily posits, rose rapidly in 1981 and 1982, further in the form of funds advanced from Federal raising the interest expense of thrift institutions. Home Loan Banks during periods of constrained The Garn-St Germain Depository Institutions liquidity. In 1978, federal regulatory authorities Act of 1982 mandated the authorization of an took a major step in the process of removing account that was to be "directly equivalent to interest ceilings on the liabilities of financial and competitive with" money market mutual institutions by allowing them to offer a six- funds. The money market deposit account month, small-denomination time deposit (one of (MMDA), established in December 1982, was less than $100,000) that had a ceiling rate tied to heavily promoted, and some institutions engaged the return on a Treasury security of comparable in aggressive introductory pricing. In less than a maturity. The authorization of this money mar- month, the share of assets funded by MMDAs ket certificate and subsequently of longer-term, grew to more than 5 percent at both types of indexed accounts helped reduce tendencies to- thrift institutions. The creation of the MMDA ward disintermediation, the phenomenon of sav- accelerated the flow of deposits out of passbook ers withdrawing funds from financial institutions savings accounts and small time deposits, but and placing them in market instruments when thrift institutions recaptured some funds that had interest rates rise above regulated ceiling rates. been invested in market instruments. With the These new accounts affected both the maturity resulting rebound in deposit growth, FSLICstructure and the cost of liabilities of thrift insti- insured institutions were able to prepay some tutions. The 1983 action to deregulate most small Federal Home Loan Bank advances that had time deposits increased the reliance of thrift been taken out at relatively high interest rates. institutions on liabilities with rates related to Flows into MMDAs moderated after the intromarket interest rates but also gave them the ductory period, but the account remained an opportunity to price accounts to attract funds of important component of liabilities at both savdesired maturities. ings banks and FSLIC-insured institutions. The process of deregulating the liabilities of thrift institutions was virtually completed in Composition of Liabilities 1983. The Super NOW account, an interestbearing transaction account without a rate ceil- Between 1978 and 1981, the proportion of assets ing, was introduced in January of that year. Rate funded by passbook accounts declined from 27 ceilings also were removed on small time depospercent to 14 percent at FSLIC-insured institu- its in October, although passbook ceilings still tions and from 45 percent to 28 percent at savings applied to deposits with maturities of 31 days or banks (table 5). The relative importance of the less and balances of less than $2,500. Institutions six-month certificate account grew to about 30 reacted less aggressively to these steps than to percent at both types of institutions. To the the MMDA, and there were few instances of extent that passbook deposits were shifted to unusually high introductory pricing. Conse- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 Federal Reserve Bulletin • March 1985 quently, deposit growth was not affected notice- one-year maturity accounted for 6 percent of ably. Thrift institutions did respond to dere- total assets in mid-1984 and were responsible for gulation by selectively promoting deposit instru- a slight lengthening in the maturity of small time ments in different maturity categories. Before deposits. October 1983, the availability of indexed or de- Even the renewed growth in deposits at thrift regulated offerings in the intermediate maturity institutions could not accommodate the strong range of around one year was limited; for exam- demand for mortgage credit in 1983 and 1984. ple, a ceiling-free account with a maturity of IV2 Thrift institutions once again supplemented core years was available only for retirement savings. deposit growth with increases in managed liabil- This maturity category subsequently has become ities, largely in the form of repurchase agreepopular with thrift institutions and their custom- ments and large time deposits. As thrift instituers. At FSLIC-insured institutions, deposits of tions turned directly to the capital markets for 5. Balance sheets of thrift institutions1 Percent of total assets Item 1978 1979 1980 1981 1982 1983 19842 FSLIC-insured institutions Deposits without a fixed maturity, total 27.3 21.3 18.4 15.4 18.4 25.5 22.7 Passbook savings accounts 27.1 21.1 18.1 14.1 11.5 8.5 7.5 Money market deposit accounts 5.2 14.0 12.2 Transaction accounts .1 .2 .3 1.3 1.8 3.1 3.0 Small time deposits, total 52.3 55.0 56.2 56.0 53.6 46.6 46.8 By maturity 6 months or less 8.4 22.5 29.9 28.5 25.5 16.9 15.9 More than 6 months n.a. n.a. 26.3 27.5 28.1 29.7 31.0 Managed liabilities, total 11.0 14.4 16.8 20.9 22.3 21.9 24.6 Large time deposits 2.8 4.7 6.4 7.3 8.1 9.8 11.4 FHLB advances 6.2 7.1 7.6 9.6 9.3 7.0 7.0 Other borrowings 2.0 2.6 2.7 4.1 4.9 5.1 6.2 Other liabilities 4.0 3.7 3.4 3.4 1.9 2.0 2.0 Net worth 5.5 5.6 5.3 4.3 3.7 4.0 3.9 Total liabilities and net worth 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Mortgage assets3 85.7 85.4 84.0 82.8 77.5 75.2 75.2 Nonmortgage loans 2.2 2.8 3.0 2.8 2.9 3.4 3.8 Cash and securities 9.2 8.9 9.8 10.1 12.0 13.4 12.5 Other assets 2.9 2.9 3.2 4.3 7.6 8.0 8.5 Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Savings banks Deposits without a fixed maturity, total 46.4 38.6 32.7 29.3 33.8 40.1 39.1 Passbook savings accounts 45.4 37.4 31.5 28.1 26.9 19.9 18.3 Money market deposit accounts 5.5 17.0 17.5 Transaction accounts \.6 i.2 i.2 i.2 1.4 3.1 3.4 Small time deposits, total 42.7 48.8 53.9 55.5 52.6 46.1 45.7 By maturity 6 months or less n.a. n.a. n.a. 30.5 28.2 19.8 18.2 More than 6 months n.a. n.a. n.a. 25.0 24.4 26.3 27.4 Managed liabilities, total 2.2 4.2 5.5 8.0 5.9 6.7 8.1 Large time deposits 1.2 2.0 2.9 3.4 2.7 3.0 3.2 Other borrowings 1.0 2.2 2.6 4.6 3.2 3.7 4.9 Other liabilities 1.9 1.4 1.3 1.5 2.4 1.7 1.9 Net worth 6.9 7.1 6.6 5.7 5.3 5.4 5.2 Total liabilities and net worth 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Mortgage assets3 66.5 67.8 66.3 64.8 62.1 59.7 59.1 Nonmortgage loans 4.6 5.7 6.8 8.4 9.7 9.9 11.7 Cash and securities 26.3 23.9 24.0 23.6 23.7 25.4 23.8 Other assets 2.6 2.6 2.9 3.2 4.5 5.0 5.4 Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1. Details may not add to totals as a result of rounding. SOURCES. Federal Home Loan Bank Board and National Council of 2. June 1984. Savings Institutions, monthly balance-sheet data, Report of Condition 3. Mortgage assets include mortgage loans, mortgage-backed secu- and Income data, and special surveys of deposit account structures. rities, and other mortgage-related assets. n.a. Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 143 funds, borrowings from Federal Home Loan thorized to offer rates lA of a percentage point, or Banks, which tend to have longer maturities, 25 basis points, above the ceiling rates that played a relatively smaller role. commercial banks could offer on fixed-rate de- All of these changes produced a liability struc- posits of similar maturity. The concept of a ture radically different from that of 1978. Depos- differential rate for thrift institutions was generalits subject to fixed ceilings constituted only a ly retained in the process of authorizing new small fraction of liabilities in 1984. Most new accounts with yields indexed to market interest funds were acquired at market interest rates. The rates. share of managed liabilities has more than dou- Deregulated accounts offer thrift institutions bled. Indeed, within the past two years, thrift the opportunity to price accounts with different institutions have made little headway in length- maturities according to their funding needs, local ening the maturity of their total liabilities. A market competition, and the general level of slight increase occurred in the proportion of market interest rates. A great diversity in pricing small time deposits that have longer terms, but strategies is evident among thrift institutions, this increase has been approximately offset by and between them and commercial banks. increases in shorter-term managed liabilities. FSLIC-insured institutions generally have of- Similar trends were observed in the liability fered the highest rates, followed by savings structure of savings banks, although small time banks and commercial banks. With the exception deposits were slightly more important in 1984 of the MMDA, the spread between the offering than in 1978. rates of thrift institutions and of commercial banks regularly exceeded the traditional differential of 25 basis points that previously had separat- Pricing of Liabilities ed their ceiling rates (table 6). Initially, FSLICinsured institutions priced some longer-maturity When the yields that institutions could pay on time deposits 60 to 80 basis points above those of deposits were constrained by ceilings, the major commercial banks. These spreads further widform of pricing competition took place between ened for all but the longest-term deposits in commercial banks and thrift institutions. Since September 1984 as banks adjusted offering rates the early 1970s, thrift institutions had been au- more rapidly in light of declines in market inter- 6. Spread between deposit offering rates of thrift institutions and of commercial banks Basis points 1983 1984 TTyyppee ooff aaccccoouunntt aanndd mmaattuurriittyy December March June September November Offering rate at FSLIC-insured institutions less offering rate at commercial banks MMMMDDAA 33332222 11117777 3333 11113333 11115555 Small time deposits 92 to 182 days 22227777 11117777 33339999 77777777 88885555 77777777 55553333 77775555 99990000 77776666 111 yyyeeeaaarrr tttooo 222VVViii yyyeeeaaarrrsss 77777777 66667777 77773333 88883333 66666666 222VVViii yyyeeeaaarrrsss aaannnddd ooovvveeerrr 77770000 66660000 66662222 55556666 66663333 Offering rate at FDIC-insured savings banks (state-chartered institutions only) less offering rate at commercial banks MMMMMMDDDAAA 33330000 33331111 33330000 33335555 44442222 Small time deposits 92 to 182 days 33337777 11110000 22223333 55553333 66665555 44444444 33335555 22229999 55552222 66668888 1 year to 2Vi years 55555555 33330000 22228888 44447777 44444444 2Vi years and over 33335555 33336666 33334444 44445555 44444444 SOURCES. Federal Reserve Board and Federal Home Loan Bank Board, survey data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 Federal Reserve Bulletin • March 1985 est rates. Savings banks consistently have of- 2. Comparison of offering rates of depository fered rates 30 to 50 basis points higher than have institutions on six-month accounts and rate commercial banks. based on ceiling formula Aggregate data such as these must be inter- Percent preted cautiously because the relevant comparison is between commercial banks and thrift institutions competing in the same market. Individual thrift institutions and commercial banks occasionally have offered rates above those of their local market competitors for short periods of time. These pricing decisions may have been made in an attempt to attract retail deposits to meet special funding needs or for promotional 1984 ,. reasons. Sometimes the rate increases were lim- Monthly data. ited to one maturity class, and competitors did SOURCES. Federal Reserve Board and Federal Home Loan Bank not always follow. With this caveat, the aggre- Board, survey data. gate data do suggest, first, that thrift institutions are pricing differently from commercial banks in the amount by which offering rates at thrift a deregulated environment, exceeding the previ- institutions were below rates on market instruous differential in some deposit categories and ments of comparable maturity. As of November paying closer to bank rates in others; and, sec- 1984, thrift institutions were offering rates on ond, that thrift institutions are pricing most ag- some accounts that were 60 to 100 basis points gressively in time deposits, perhaps to obtain above those of comparable market instruments. funds that better balance their asset portfolios. The manner in which thrift institutions price Except in the first months following the dereg- relative to market interest rates, as well as relaulation of small time deposits, thrift institutions tive to their competitors, has important implicado not appear to be following formulas used in tions for their future cost of funds and earnings. the construction of the previously indexed ac- Ceiling rates on accounts indexed to market counts nor to be tying rates directly to yields on interest rates moved in line with those rates, Treasury securities. Chart 2 displays a compari- although not always as much. Most thrift instituson of current offering rates in the six-month tions paid the maximum possible rate, particularmaturity range with the ceiling rate that would ly on the widely advertised six-month money have prevailed for thrift institutions if the ac- market certificate, so that their rates also moved count were still indexed; the ceiling rate for closely with market interest rates. As noted commercial banks was equal to that of thrift above, however, the pricing of deposits has been institutions at some levels of the index or was as less immediately responsive to changes in marmuch as 25 basis points less at others. After ket interest rates since the deregulation of small deregulation in late 1983, both FSLIC-insured time deposits. Thrift institutions are learning institutions and savings banks priced six-month how to price their deposits and how depositors deposits close to the rate dictated by the old respond to rate variations; part of the response of ceiling formula. Commercial banks, on the other deposit offering rates to movements in market hand, priced 20 to 35 basis points lower. Since interest rates may be explained by this process. that period, deposit offering rates have tended to With a bundle of financial services to offer, move sluggishly in response to changes in market including convenience as well as insured deposit yields. During the upward portion of the interest products, thrift institutions may not need to pay rate cycle in 1984, deposit offering rates some- rates as high as those on market instruments to times lagged market interest rates as much as 200 attract funds. If thrift institutions must price basis points (table 7). Once market interest rates significantly above market interest rates to atbegan falling, deposit rates either continued in- tract and retain funds, their longer-term earnings creasing or fell by smaller amounts, narrowing prospects will be impaired. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 145 7. Spread between deposit offering rates of thrift institutions and rates on market instruments' Basis points 1983 1984 ••TTyyppee ooff aaccccoouunntt aanndd mmaattuurriittyy December March June September November FSLIC-insured institutions MMDA -1 -24 -85 -117 -64 Small time deposits 92 to 182 days -27 183 days to 1 year -3 1 year to 2Vi years -30 2Vi years and over -45 I 1 l l J-VOOOOV >£vOO -61 25 103 -101 31 73 -158 -7 34 -187 -48 14 FDIC-insured savings banks (state-chartered institutions only) MMDA 2 -9 -58 -95 -38 Small time deposits 92 to 182 days -23 -86 -76 1 83 183 days to 1 year -38 -86 -147 -6 66 1 year to 2Vi years -60 -119 -203 -43 13 2Vi years and over -85 -121 -216 -59 -4 1. The MMDA was compared with the Donoghue's 30-day average Treasury bonds. For deposits with maturities of 2Vi years and more, yield for money market mutual funds. Market instruments used in the an average of the 3-year and 5-year Treasury bonds was used. other calculations are the 180-day Treasury bill and 1-year and 2-year SOURCES. Federal Reserve Board and the Federal Home Loan Bank Board, survey data. i ASSETS OF THRIFT INSTITUTIONS tions in mortgage investments, both mortgage ^ (Mi ~ loans and mortgage-backed securities, has de- The asset portfolios of thrift institutions are clined since 1978 (balance sheet, table 5). The dominated by long-term investments, primarily proportion remained relatively stable after 1982, mortgage assets. Large holdings of such assets however, as these institutions began once more exacerbate the earnings problems of these insti- to provide large portions of the net increase in tutions when market interest rates rise, because outstanding residential mortgage debt. Increases the return on a fixed-rate mortgage portfolio in holdings of cash and securities accounted for responds to such changes only as new funds or much of the relative decline in mortgage assets at funds from prepaid and maturing loans are in- FSLIC-insured institutions; these liquid assets vested in market-yielding assets. Aided by regu- had been acquired in part as a result of the rapid latory and legislative changes, thrift institutions growth in MMDA balances in late 1982 and early are pursuing several strategies to restructure 1983. Growth in the category "other assets" their asset portfolios away from fixed-rate mort- accounted for most of the rest of the shift in asset gage loans and to increase the interest rate composition and was a result primarily of insensitivity of the returns on their assets. Institu- creases in goodwill and deferred losses. tions have reduced somewhat their reliance on Savings banks, in contrast, increased their mortgage assets and have changed the composi- relative holdings of nonmortgage loans while tion of these assets. A few firms have increased keeping approximately the same proportion of their investments in nonmortgage loans, and assets invested in cash and securities. They some are pursuing a strategy of rapid growth to altered the composition of their holdings of these dilute the effects of older mortgages on their assets, however. The proportions of liquid assets portfolios. Some institutions are also beginning held in deposits at other financial institutions and to use futures contracts and interest rate swaps in Treasury and agency securities increased subin an attempt to reduce their interest rate risk as stantially after 1978, and the relative holdings of they restructure. state and local obligations fell by half. As savings banks incurred losses, they no longer benefited The proportion of assets held by thrift institu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 Federal Reserve Bulletin • March 1985 from the tax-exempt status of municipal securi- mortgage-backed security than it would if it held ties. the underlying loans directly, there are several Some thrift institutions are increasing their advantages to holding mortgage assets in the investments in service corporations in a further form of a security. The primary benefit is that the attempt to diversify their assets and to supple- institution may use these securities as collateral ment their earnings. These investments also al- for borrowing purposes, essentially allowing it to low many institutions to participate in activities use existing assets to obtain funds to invest in such as direct real estate investment that they are new instruments. This aspect was especially not authorized to undertake themselves. While important in the early 1980s, when deposit flows data are limited, the returns to investments in were weak. Mortgage-backed securities have service corporations appear to have varied wide- greatly expanded the access of thrift institutions ly; such holdings did not benefit all institutions. to the capital markets. These institutions have To the extent that the activities of these corpora- used the securities to enter into term repurchase tions are concentrated in areas such as direct real agreements with investment firms and to provide estate investment, holdings in them may entail collateral for the issuance of commercial paper. higher risks than mortgage lending or in effect They also have used mortgage-backed securities may involve the acquisition of long-term assets. to obtain longer-term financing through the issu- Although investments, including unsecured ance of collateralized mortgage obligations and loans and some shares of net income, in service of Eurobonds. Another benefit of mortgagecorporations and other subsidiaries increased backed securities is their liquidity: they are more significantly at FSLIC-insured institutions over easily sold in the secondary market than are the first half of 1984, they constituted less than mortgage loans. The use of these instruments to IV2 percent of the assets of these institutions at sell older loans, by swapping the loans for securithe end of June. ties and then selling the securities, became more attractive for FSLIC-insured institutions as a On balance, the shift away from mortgage result of a regulatory accounting change in 1981 assets by thrift institutions has been small. Mortthat allowed them to defer losses from the sale of gage investments accounted for 60 percent of the assets with below-market yields. assets of savings banks and 75 percent of the assets of FSLIC-insured institutions at the end of A larger proportion of mortgage assets held in June 1984 (balance sheet, table 5). Although the form of mortgage-backed securities does not reducing the proportion of assets held in mort- increase the interest sensitivity of returns on the gage instruments is one method of restructuring, mortgage portfolio, however, except to the exfederal income tax regulations have an influence tent that such securities are used to borrow funds on the amount of mortgage assets some firms that are then invested in shorter-term assets. Nor choose to hold. For example, the allowable do increased holdings of these securities necesamount of bad debt deductions an institution sarily raise the yield of the portfolio. Virtually all may claim for tax purposes is related to its mortgage-backed securities are backed by oneholdings of various specified assets, of which to four-family, fixed-rate mortgage loans. As a mortgage investments are an important compo- result, their yields are generally fixed and, when nent. the securities are acquired through a swap, are comparable with the levels of the yields on the underlying mortgages. Restructuring Mortgage Portfolios Thrift institutions also have aggressively promoted adjustable-rate conventional mortgages The most dramatic change since 1978 in the (ARMs) in recent years. These instruments incomposition of the mortgage assets of thrift crease the sensitivity of the returns on mortgage institutions has been an increase, from 3.7 per- portfolios to changes in market interest rates. cent to more than 15 percent, in the proportion of Yields on ARMs adjust to market interest rates these assets that FSLIC-insured institutions hold at specified intervals, usually one to five years, as mortgage-backed securities (table 8). Al- although the amount of adjustment may be limitthough an institution receives a lower yield on a ed by contractual or regulatory provisions. State- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 147 8. Composition of mortgage assets of thrift institutions Percent of total mortgage assets Item 1978 1979 1980 1981 1982 1983 19841 FSLIC-insured institutions Residential mortgage loans2 86.8 86.5 85.7 84.5 78.8 73.2 70.8 Commercial mortgage loans 7.9 7.7 7.4 7.4 8.1 9.5 10.4 Mortgage-backed securities3 3.7 4.1 5.2 6.0 11.0 14.3 15.5 Other mortgage assets 1.6 1.7 1.7 2.1 2.1 3.0 3.3 Total mortgage assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0 MEMO: 1- to 4-family conventional ARMs as a percent of all 1- to 4-family loans and all mortgage-backed securities4 n.a. n.a. 5.6 7.4 9.4 13.3 n.a.5 Savings banks Mortgage loans 90.5 89.3 87.8 87.8 87.0 84.3 84.6 Mortgage-backed securities 9.5 10.7 12.2 12.2 13.0 15.7 15.4 Total mortgage assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1. June 1984. mortgages. FHA- and VA-underwritten one- to four-family loans also 2. Includes one- to four-family and multifamily conventional loans had fixed rates. and all FHA- and VA-underwritten loans. 5. After December 31, 1983, the Report of Condition and Income 3. Data for 1984 include holdings of conventional mortgage securi- contains data only on holdings of all ARMs and all balloon mortgages, ties. including construction loans. These loans constituted 24.6 percent of 4. ARMs data include only loans with full amortization. Balloon toted mortgage assets at the end of June 1984. loans are not included. As of the end of 1983, virtually all mortgage- n.a. Not available. backed securities were secured by one- to four-family, fixed-rate SOURCES. Federal Home Loan Bank Board and National Council of Savings Institutions. chartered institutions in California have had the stitutions while accounting for only 8 percent of authority to issue a form of adjustable-rate con- total mortgage assets. Some of these institutions ventional mortgage for some years. Interest rate were active in issuing the limited adjustable-rate changes on these instruments in general were mortgages permissible under California state strictly limited, however. It was not until 1981, charters, and some have specialized in ARM when regulators authorized all federally char- lending, issuing only that type of mortgage loan. tered institutions to make adjustable-rate mort- In contrast, nearly one-fourth of all FSLICgages, that a large segment of the industry could insured institutions held no one- to four-family invest in such assets. Repricing terms on federal- conventional ARMs at the end of 1983. ARM ly authorized ARMs are set by the lending insti- lending over this period was not limited to Calitutions. fornia, however, for firms outside that state held In 1982 and 1983, 30 to 50 percent of conven- more than 60 percent of these mortgages outtional home mortgage loans closed at savings and standing at all FSLIC-insured institutions. loan associations and mutual savings banks had The holdings of ARMs undoubtedly became adjustable rates. Although this emphasis on more widespread in 1984, as the proportion of ARM lending resulted in a rapid increase in the conventional home mortgage loans closed with proportion of mortgage assets with adjustable- adjustable-rate features by thrift institutions ran rate features, one- to four-family conventional in some months as high as 75 percent (table 9). adjustable-rate mortgages accounted for only Many institutions have also issued balloon mortslightly more than 13 percent of all one- to four- gages, which have a shorter effective maturity family mortgages and mortgage-backed securi- than standard fixed-rate loans, and some conties held by FSLIC-insured institutions at the struction loans may have balloon or adjustableend of 1983 (table 8). In addition, holdings of rate features. At the end of June 1984, all types of ARMs were concentrated at a few firms. Five ARMs plus all types of balloon mortgages constilarge California institutions held more than 28 tuted approximately one-fourth of the mortgage percent of all conventional one- to four-family assets of FSLIC-insured institutions. Nevertheadjustable-rate mortgages at FSLIC-insured in- less, even if recent lending patterns continue, it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 Federal Reserve Bulletin • March 1985 9. Percent of conventional home mortgage loans closed with adjustable-rate features, by type of lender, 19841 Savings and Savings Commercial Mortgage Month All lenders loan banks banks companies associations January 59 64 70 42 36 February 56 63 66 28 60 March 60 66 68 35 66 61 66 65 37 60 62 69 56 33 57 65 68 75 36 69 July 66 73 58 38 59 August 68 75 68 39 71 September 66 70 73 50 50 October 64 70 63 45 50 November 60 68 64 34 50 December 48 60 55 26 30 1. The number of ARMs as a proportion of all conventional first SOURCE. Federal Home Loan Bank Board survey of mortgage mortgage loans for the purchase of new and existing nonfarm single- interest rates. family properties closed during the first five full working days of the month. will be some time before mortgage assets that are Use of New Asset Powers repriced frequently are the major component of the mortgage portfolios of most thrift institu- The new and expanded powers granted by the tions. Depository Institutions Deregulation and Mone- Even significant holdings of ARMs will not tary Control Act and by the Garn-St Germain completely eliminate the interest sensitivity of Act allow federally chartered thrift institutions to the earnings of thrift institutions, particularly diversify into assets such as commercial and over short periods of time. The speed with which consumer loans. These assets are not so closely the yields on ARMs adjust to changes in market tied to cycles in the housing market and are of a interest rates is limited to the extent that repric- considerably shorter effective maturity than are ing occurs only every three or five years and that fixed-rate mortgage loans. The shorter maturities the magnitudes of the rate adjustments are con- of these investments allow institutions to instrained. Although the acceptance and use of crease the interest rate sensitivity of the yields one-year ARMs is increasing, three- and five- on their assets. The provisions of this legislation, year instruments are still offered, and many of however, primarily resulted in expanded powers the existing ARMs have fairly strict limitations for savings and loan associations because many on repricing. Also, some ARMs have been issued of the state-chartered savings banks were alat initial, discounted rates to increase their ac- ready permitted such investments by state laws. ceptance by borrowers. These instruments may FSLIC-insured institutions have been slow to create stresses that offset any beneficial impact expand the proportion of their assets held in on the interest sensitivity of earnings. First, such nonmortgage loans. In the aggregate, the imporpricing often reduces the initial return on the tance of such loans at these institutions increased mortgage during the discount period even though only marginally over the last few years to less these loans generally carry higher initial fees than 4 percent of total assets (balance sheet, than do loans without such discounts. Second, if table 5). The considerable start-up costs associborrowers were qualified for loans based on ated with instituting new lending programs may payments calculated at discounted rates, lenders have deterred many institutions from exercising may encounter increased delinquencies or de- these new powers. Others, faced with strong faults when the instruments are repriced to mar- mortgage demand, may have preferred to conket rates at the end of the discount period. centrate on traditional types of lending. In con- Increased credit risk may be a problem even with trast, from the end of 1978 to mid-1984, nonmortappropriately priced ARMs if there is a sharp, gage loans more than doubled in importance at sustained increase in market interest rates. savings banks (balance sheet, table 5). This dis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 149 parity resulted from the differences in the geo- age holdings were less than $6 million. Personal graphic distributions of the two sets of institu- property leases (both consumer and noncontions as well as differences in past state sumer) were held by only a few institutions. regulatory environments. Savings banks are con- Holdings of these newer types of assets genercentrated in the Northeast, where mortgage ac- ally were highly concentrated. The 10 largest tivity has been somewhat weaker than in the holders of leases and of C&I loans accounted for West, the location of the largest FSLIC-insured 71 percent and 26 percent respectively of these institutions. As a result, many of the latter insti- assets at FSLIC-insured institutions. In contrast, tutions had more opportunity to acquire higher- the 10 largest holders of consumer loans held less yielding, often adjustable-rate, assets in the form than 18 percent of such loans. Institutions initialof new mortgage loans rather than turn to other ly may have chosen to specialize in different types of lending. On the other hand, many sav- types of nonmortgage lending because holdings ings banks had more time to begin and establish of these different types of assets were not genercommercial and consumer lending programs by ally concentrated at the same institutions. virtue of older, state-authorized powers. 10. Selected data on FSLIC-insured institutions Restructuring through Growth grouped by holdings of commercial and industrial loans, consumer loans, and leases, June 19841 Rapid asset growth has become another strategy for restructuring. By acquiring a large amount of Institutions holding Institutions new, market-yielding assets quickly, institutions Institutions commercial holding Item and consumer holding may shorten the period of time required to diminleases industrial loans ish the effects of older assets on the average loans returns on their portfolios as well as generate Number of institutions . 1,204 3,103 107 current income through origination fees on new Average assets (millions of dollars) 444 290 640 loans. This strategy is problematic, however. Percent of industry assets 59.3 99.9 7.6 Because rapidly growing institutions generally cannot rely upon core deposit growth to finance MEMO Indicated assets as a their asset acquisition they turn to short-term percent of total assets 1.2 3.0 .6 managed liabilities, such as repurchase agree- Mortgage assets as a ments and large CDs, that increase their interest percent of total assets2 73.8 75.3 71.6 rate exposure. They may also rely on brokered deposits that command premium rates and that, 1. Data are for institutions reporting holdings of C&I loans, consumer loans, or personal property leases. Since some institutions hold in turn, may limit the assets these institutions can more than one type of these assets, they are included in more than one acquire at a positive spread over the cost of the column. 2. Mortgage assets include mortgage loans, mortgage-backed secu- funds. The rapid acquisition of assets may also rities, and other mortgage-related assets. result in lowered credit standards, and thus lead SOURCE. The Report of Condition and Income. to increased future losses from defaults. If mar- The number of FSLIC-insured institutions that ket interest rates remain stable or fall, and if the held different types of these assets varied consid- new assets are sound, rapidly growing instituerably. Virtually all institutions held some con- tions are likely to prosper. If there are significant sumer loans in mid-1984 because this category defaults on the new investments or if market includes home improvement loans and loans on interest rates rise significantly, these firms may savings accounts (table 10). Such loans have incur substantial losses that will deplete their net been made by thrift institutions for some time. worth. In any event, the growth in assets at these Only about 1,200 firms, less than 40 percent of institutions often exceeds proportionate growth FSLIC-insured institutions, held some form of in capital, so that their net worth relative to commercial and industrial (C&I) loans. These assets declines over time, and the potential risk to the FSLIC increases. loans accounted for slightly more than 1 percent of the assets of these institutions, and the aver- The potential problems associated with a strat- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 Federal Reserve Bulletin • March 1985 11. Composition of end-of-period liabilities and assets of FSLIC-insured institutions, grouped by average annual rates of growth in assets over the first half of 19841 Percent of assets or liabilities Annual rate of growth in assets (percent) IItteemm Less than 15 15 to 25 25 to 50 More than 50 All firms Liabilities Retail deposits 80.9 72.4 64.7 59.0 73.3 Large time deposits2 7.3 11.6 14.5 18.1 10.7 Repurchase agreements 2.4 4.0 6.8 10.4 4.4 FHLB advances 6.7 8.1 9.6 7.3 7.6 Other liabilities 2.7 3.9 4.4 5.2 4.0 Total liabilities 100.0 100.0 100.0 100.0 100.0 MEMO: Brokered deposits as a percent of total deposits 2.2 3.6 10.5 15.6 5.4 Assets Total mortgage assets 75.9 77.2 74.1 69.6 75.1 Commercial mortgages 6.6 8.3 8.2 10.8 7.6 Loans for the acquisition and development of land, developed building lots, and unimproved land 1.2 1.8 2.5 5.8 2.1 Residential loans, mortgage-backed securities, and other mortgage-related assets 68.1 67.1 63.4 53.0 65.4 Nonmortgage loans 3.7 3.6 4.6 5.0 4.0 Real estate investment3 .2 .6 .7 1.2 .5 Other 20.2 18.6 20.6 24.2 20.4 Total assets 100.0 100.0 100.0 100.0 100.0 MEMO: Ratio of net worth to total assets December 1983 3.9 3.8 4.4 3.6 4.0 June 1984 4.0 3.7 4.1 3.5 3.9 1. Figures exclude institutions chartered after December 31, 1980, such powers. State-chartered institutions constitute a higher proporand institutions merging in the first half of 1984. tion of rapidly growing institutions than of firms with slower growth 2. Deposits with denominations of more than $100,000. rates. 3. Many state-chartered institutions are authorized to make direct SOURCE. The Report of Condition and Income, December 1983 and investments in real estate; federally chartered institutions do not have June 1984. egy of rapid growth are illustrated in table 11. NET WORTH Large time deposits and repurchase agreements OF THRIFT INSTITUTIONS constituted 20 to 30 percent of the end-of-period liabilities at the institutions that had grown the The ability of thrift institutions to expand into fastest over the first half of 1984. In contrast, new types of lending activities and to restructure these short-term funds were less than 10 percent their portfolios in a prudent fashion may be of liabilities at slower-growing institutions. Fast- hampered by their weak capital position. Reporter-growing firms also relied more heavily on ed net worth as a percent of assets was 3.9 brokered deposits. Real estate investments, percent at FSLIC-insured institutions and 5.2 loans for the acquisition and development of percent at savings banks at the end of June 1984. land, and loans for developed building lots, Aggregate net worth ratios, moreover, disguise which can entail greater credit risk than tradi- the fact that approximately one-third of the astional mortgage loans, made up a larger propor- sets of FSLIC-insured institutions and onetion of assets at faster-growing firms. Although fourth of the assets of FDIC-insured savings rapidly growing firms in the aggregate did not banks were held by firms with net worth ratios of have consistently lower ratios of reported net less than 3 percent in mid-1984 (table 12). Low worth to assets than did other firms, only the net worth reduces the amount of time that an slowest-growing institutions were able to im- institution can survive adverse interest rate prove their capital positions, relative to assets, movements while it is restructuring, and new over the period. In contrast, the net worth ratios types of lending activities often entail significant of rapidly growing firms declined between the start-up costs that weaker firms may be unwilling end of 1983 and June 1984. or unable to absorb. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 151 12. Distribution of thrift institutions, by selected net FSLIC and the FDIC to acquire net worth certifiworth ratios, June 1984 cates from qualifying weak institutions in exchange for promissory notes. This program was Net worth as a percent Number of Percent of of assets institutions total assets specifically designed to allow institutions that had suffered declines in net worth as a result of All FSLIC-insured institutions operating losses, but that had a reasonable Reported net worth chance of becoming profitable, to continue oper- Less than 1 155 3.3 1 to less than 3 775 27.1 ating. The net worth certificates are like income 3 to less than 5 1,106 45.8 5 and over 1,112 23.9 capital certificates and are to be redeemed when an institution returns to profitability. Total 3,148 100.0 The success of these certificates to date has Reported net worth less regulatory additions1 been mixed. Only a few firms have issued such Less than 1 246 6.4 certificates, and few of them are now profitable. 1 to less than 3 790 29.1 3 to less than 5 1,026 42.4 As of mid-1984, 93 FSLIC-insured institutions 5 and over 1,086 22.1 and 24 FDIC-insured savings banks, represent- Total 3,148 100.0 ing approximately 10 percent of industry assets, FDIC-insured savings banks had $852 million and $511 million respectively of these certificates outstanding. Only 4 of the Reported net worth Less than 1 1 1.7 savings banks and 31 of the FSLIC-insured insti- 1 to less than 3 35 24.7 3 to less than 5 49 23.8 tutions recorded positive net income in the sec- 5 and over 208 49.8 ond quarter of 1984 or had been merged with Total 293 100.0 profitable institutions. Some firms have issued Reported net worth less these certificates relatively recently and thus regulatory additions2 Less than 1 7 9.0 may not be expected to have returned to profit- 1 to less than 3 30 17.8 ability. Also, some ICCs have been redeemed as 3 to less than 5 49 23.9 5 and over 207 49.3 a result of merger activity. Total 293 100.0 To further increase reported net worth, the Federal Home Loan Bank Board authorized 1. Reported net worth less income capital and net worth certificates FSLIC-insured institutions in 1982 to use anothand appraised equity capital. 2. Reported net worth less net worth certificates. er regulatory addition to net worth, appraised SOURCE. The Report of Condition and Income. equity capital. This accounting procedure allows an institution to book as net worth a one-time Regulatory Additions to Reported adjustment reflecting the difference between the Net Worth market value and the book value of its capital assets (buildings and land). Appraised equity The reported net worth of some thrift institutions capital had been used by less than one-fourth of includes additions that do not represent inflows FSLIC-insured institutions by mid-1984. of new capital or are not inflows of capital The combined effect of these regulatory acindependent of the insurance funds. These items, tions on aggregate reported net worth has been which increase reported net worth for regulatory small. At the end of June 1984, regulatory addipurposes, were intended only to increase the tions constituted approximately 5 percent of the amount of time firms had to restructure. In late aggregate reported net worth of savings banks 1981 the FHLBB and the FSLIC created the and 6 percent of the net worth of FSLIC-insured income capital certificate (ICC) to aid ailing institutions. Chart 3 illustrates the effect of these institutions. Such institutions were allowed to additions since their inception on aggregate reissue an income capital certificate, which the ported ratios of net worth. The impact of these FSLIC purchased for cash or a promissory note; additions on the distribution of firms by net when the weak institutions became profitable, worth ratios is more pronounced in the classes of the certificates would be redeemed. In 1982, the institutions with lower net worth ratios because Garn-St Germain Act authorized both the generally it was the weaker firms that used these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • March 1985 3. Effects of regulatory additions on reported net worth stock form. The FHLBB approved 108 such as a percent of assets at thrift institutions conversions in 1983 and 100 in 1984, more than Percent the total number of conversions approved in the previous seven years. The successful conversion of an institution to stock form is dependent upon prevailing prices for the equities of thrift institutions. Prices of the shares of thrift institutions are considerably more sensitive to movements in interest rates than are prices of other types of stocks. This sensitivity makes equity issuance difficult when interest rates rise. Prices of thrift institution shares, as measured by an index of equity prices for savings and loan associations, fell sharply in the first half of 1984 in response to the increase in market i i i i i i i 1978 1980 1982 1984 interest rates over that period. Even though share prices began rising when market interest Annual data; 1984 data shown are for June. SOURCE. Federal Home Loan Bank Board, Federal Deposit Insur- rates began moving downward in mid-1984, they ance Corporation, Report of Condition and Income, and National ended the year below their level at the beginning Council of Savings Institutions. and more than 25 percent below their peak in methods to bolster their reported net worth (ta- May 1983. In the first half of 1984, these stocks ble 12). underperformed both the general market, as shown by the Standard & Poor's 500 index, and the stocks of smaller regional banks, as shown by the NASDAQ bank index (chart 4). As a result of Traditional Additions to Net Worth these price declines, equity issuance by thrift Thrift institutions have two traditional methods institutions slowed dramatically. After raising by which to increase their net worth: retained $3.8 billion of capital in the equity markets in earnings and equity issuance. Retained earnings 1983 and an additional $566 million in the first are not likely to be large enough to increase quarter of 1984, thrift institutions issued less than significantly the industry's ratio of net worth to $70 million of equity over the remainder of the assets in the near future. Even if the return on year (table 13). The recent rise in their share assets of FSLIC-insured institutions were to rise prices probably will result in an increase in to the level experienced in 1978, and asset equity issuance. Many associations have initiatgrowth was moderate, their aggregate net worth ratio would not exceed 5 percent for several years. 4. Selected stock price indexes Equity issuance provides another avenue for January 1983 = 100 thrift institutions to raise new capital. Legislative NASDAQ banks and regulatory changes over the past few years 140 have greatly simplified the conversion of institutions from mutual to stock forms of organization. The Garn-St Germain Act contains provisions that allow state-chartered mutual institutions to 100 convert to federal stock charters, and the S&Ls^S^/" i i i i i i i i i i i i i i i i i i i i i i i FHLBB has adopted a series of rules that have 1983 1984 streamlined the conversion process for federally NASDAQ = National Association of Securities Dealers Automated chartered institutions. As a result of these Quotations; S&Ls = savings and loans; S&P = Standard & Poor's. changes and the need to raise capital, many Each index is a monthly average adjusted to equal 100 in January 1983. All indexes are weighted by shares outstanding. mutual institutions have sought to convert to SOURCE. S&L index compiled by Federal Reserve Board staff. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 153 13. Public equity offerings by thrift institutions and version to the stock form of charter are continuprices of savings and loan stocks1 ing, but such conversions represent only a small Millions of dollars except as noted portion of the total number of mutual thrift institutions. In addition, nearly one-fourth of all Average value of FSLIC-insured institutions experienced losses in savings and loan Total Initial Seasoned the second quarter of 1984, further eroding their Period i s n to d c e k x offerings of p f u e b ri l n ic g s offerings capital positions. As a result, the disparity (1983:H1 among the net worth positions of firms in the = 100) industry is likely to widen, indicating that further 1983 mergers and consolidation of the thrift industry HI 100.0 1,589 1,468 121 H2 104.5 2,231 1,991 240 may continue. Total 3,820 3,459 361 1984 Q1 94.6 566 376 190 CONCLUSION Q2 75.1 37 37 0 Q3 76.3 15 15 0 Q4 92.9 15 6 9 The thrift industry survived the losses of the Total 633 434 199 early 1980s though they left a legacy of problem institutions with which regulatory authorities are 1. These figures somewhat understate total equity capital raised still dealing. A significant portion of the industry because they generally do not include the shares purchased by management and depositors. is experiencing losses, and the net worth posi- SOURCE. Federal Reserve Board. tions of most firms have been eroded. Further consolidation of the industry may occur. Legislaed the conversion process and have been waiting tion and regulations aimed at preventing difficulfor the market for thrift stocks to improve before ties have helped extend the time for the industry attempting to issue shares. to restructure. Nevertheless, the current profit- Even large amounts of equity issuance will ability of the thrift industry is a result of the have only a slight impact on the aggregate net lower average level of market interest rates more worth ratio of the industry. Despite positive than of structural changes in the institutions' earnings and some equity issuance in the first balance sheets. half of 1984, the ratio of net worth to total assets By choice or necessity, most thrift institutions at FSLIC-insured institutions declined as asset have retained the structure and activities that growth exceeded the proportionate increases in have been traditional in their industry. They are net worth over the period. If equity issuance had primarily mortgage lenders, and their loans are continued at the same rate as in the first half of funded by liabilities with effective terms much 1983, their net worth ratio would have improved shorter than those of their assets. Current data only marginally. Also, many of the firms issuing suggest that some thrift institutions may be spestock for the first time in 1983 were the larger, cializing in adjustable-rate mortgage loans or in stronger institutions; smaller or weaker firms specific types of nonmortgage lending, but the may find it difficult or impractical to raise capital industry as a whole appears to be changing through equity issuance in the future. slowly. It will take thrift institutions time to Equity issuance and retained earnings, while rebuild capital and to redirect investments. Durincreasing industry net worth, do not increase it ing that interval, their earnings will remain sensiuniformly among institutions. Approvals for con- tive to movements in market interest rates. The appendix begins on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 Federal Reserve Bulletin • March 1985 APPENDIX: MERGER TRENDS AND ASSET in financial difficulty, most of the consolidation CONSOLIDATION IN THE THRIFT INDUSTRY has resulted from unprecedented levels of merger activity. The number of mergers approved by The thrift industry, largely through record num- the Federal Home Loan Bank Board (FHLBB) bers of mergers from 1980 to 1983, has consoli- averaged 2 percent of all Federal Home Loan dated substantially. From December 1979 to Bank members from 1970 through 1980, but June 1984, the number of institutions insured by surged to record annual rates of 7 percent in 1981 the Federal Savings and Loan Insurance Corpo- and more than IOV2 percent in 1982 (table A.2). ration decreased more than 20 percent, and the While time lags may occur between cyclical number of savings banks insured by the Federal economic declines and peak merger activity, the Deposit Insurance Corporation declined nearly highest rates of merger approvals by the Federal 10 percent. This consolidation has resulted in an Home Loan Bank Board have corresponded with increase in the concentration of assets among periods of recession. Distinct increases in the FSLIC- and FDIC-insured thrift institutions. The number of approvals occurred during the reces- 100 largest firms, approximately 3 percent of sionary periods in 1971-72, 1975, and 1980-83. FSLIC-insured institutions in mid-1984, held 43 Merger approvals more than doubled in 1981, as percent of industry assets compared with 33 market interest rates exceeded 18 percent and percent in 1979 (table A.l). The top 10 savings thrift earnings plunged. With the improvement in banks, or 3 percent of FDIC-insured institutions the economy and the financial condition of thrift in mid-1984, controlled 35 percent of industry institutions, merger activity has subsided since assets, 10 percentage points more than in 1979. 1982. The largest increase in the concentration of as- In approving mergers, the objective of the sets at both sets of institutions occurred in 1982, Federal Home Loan Bank Board is to protect a year of particularly heavy merger activity. depositors and to minimize costs to the FSLIC. Initially, the FHLBB encourages institutions to Merger Activity strengthen their financial positions through internal restructuring or by arranging a voluntary Although a small portion of the decline in the merger. Voluntary mergers traditionally have number of institutions may be attributed to mem- accounted for the highest proportion of savings ber terminations and to the closing of institutions and loan mergers. These mergers, which represented 75 percent of merger activity in 1980 and 1981, continued to constitute a majority of all A.l. Concentration of total assets at FSLIC-insured mergers of FHLB members even when earnings and FDIC-insured thrift institutions, year-end, 1979-84 of thrift institutions plummeted and supervisory Percent of total industry assets except as noted and FSLIC-assisted cases reached peak levels. If institutions are unable to resolve their prob- Regulatory agency Ten hu O nd n r e e d M T E o M ta O l : lems independently, the FHLBB arranges a sulargest and year largest number of firms pervisory or FSLIC-assisted merger. These firms institutions types of merger, which involve weakened institu- FSLIC-insured tions with reported net worth near or below the institutions 1979 11 33 4,037 regulatory minimum, require the FHLBB to ar- 1980 11 35 3,992 1981 11 37 3,750 range and oversee a merger and, in FSLIC- 1982 13 42 3,280 assisted cases, to provide financial assistance. 1983 15 43 3,132 1984' 16 43 3,148 While the proportion of supervisory mergers FDIC-insured rose from 15 percent in 1980 to a high of 39 institutions percent in 1982, FSLIC-assisted cases peaked 1979 25 81 324 1980 25 81 323 at 17 percent of all savings and loan mergers 1981 28 81 330 1982 33 82 315 in 1983. Total supervisory and FSLIC-assisted 1983 35 84 294 cases climbed to 49 percent of merger approvals 1984' 35 84 293 in 1982, but declined to 35 percent in 1984 1. As of June 30, 1984. because the condition of the industry improved. SOURCE. The Report of Condition and Income. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Thrift Industry in Transition 155 A.2. Mergers of Federal Home Loan Bank members, 1979—84' MMeerrggeerrss MMeerrggeerr Merger approvals, by type aapppprroovvaallss aass IInnssuurraannccee--ooff-- FFHHLLBB aapppprroovveedd ffoorr YYeeaarr--eenndd aa ppeerrcceenntt ooff aaccccoouunnttss mmeemmbbeerrss mm FF ee HH mm LL bb BB eerr ss mm FF ee HH mm LL bb BB eerr ss Voluntary Supervisory a F s S s L is I t C ed - ccaasseess22 1979 .. 4,242 51 1.2 n.a. n.a. n.a. 0 1980 .. 4,250 141 3.3 109 21 11 0 1981 .. 4,244 296 7.0 217 56 23 1 1982 .. 4,029 425 10.6 215 166 44 1 1983 .. 3,555 138 3.9 84 31 23 5 1984? 3,407 49 1.4 32 10 7 9 1. Some savings banks and savings and loan associations that are cease to exist. Two cases were payouts; the remainder were transfers not insured by the FSLIC may elect to become members of the FHLB of insured accounts, in which insured deposits became available at system. New savings bank memberships increased the number of another institution. FHLB members in 1980. n.a. Not available. 2. As of December 31, 1984. Insurance-of-accounts cases are p Preliminary. separate from FSLIC-assisted cases and involve institutions that SOURCE. Federal Home Loan Bank Board. FSLIC-Assisted Mergers tion becomes profitable again. Income guarantees require the insurance agency to make contri- The FHLBB arranges an FSLIC-assisted merger butions that maintain the income of the acquired for particularly weak institutions when other institution when higher interest rates reduce options have been exhausted. In arranging merg- earnings. Conversely, any reduction in interest ers for these institutions, the FHLBB may pro- rates entitles the insurance agency to share in vide several types of assistance. Financial assis- improvements in earnings. These guarantees are tance may take the form of income capital or net set for a fixed period. worth certificates (discussed in the text), various Interstate mergers have accounted for the largincome guarantees, or capital outlays. Purchases est proportion of FSLIC-assisted cases and have of net worth certificates by the insurance fund provided significant cost savings to the insurance require no immediate outlays except interest fund. Although interstate and interindustry acpayments on promissory notes that are issued in quisitions have been restricted by statute or exchange for certificates from the institution. federal regulation, an interstate branching reso- These certificates are redeemed when the institu- lution approved by the FHLBB in 1981 and the Garn-St Germain Act, passed by the Congress in 1982, granted formal authority for thrift industry A.3. Merger costs for FSLIC-assisted cases, regulators to consider this option under emergen- 1979-84 cy conditions. This authority requires that regulators seek suitable intra- and then interstate 1981 MMeeaassuurree ooff merger partners within the industry. After all 11997799 11998800 11998822"" pprreesseenntt vvaalluuee Jan.- June- intraindustry options have been considered, May Dec. mergers with other types of institutions, either Present value of within or outside the state, may be approved. A the total cost of FSLIC-assisted total of 43 interstate mergers have been approved cases as a percent of total cost since the first interstate merger was allowed by of liquidation2 .. 75.8 63.3 74.8 18.0 16.3 the FHLBB and the FSLIC in September 1981. Present value of the total cost of Interstate and interindustry mergers have FSLIC-assisted cases (millions involved at least one thrift institution merger of dollars) 35.7 166.6 987.9 1,131.2 partner in particularly poor financial condition. Nevertheless, they have been attractive to insti- 1. Latest available data. 2. The present value of the total cost of FSLIC-assisted cases in a tutions seeking to establish interstate operations given year represents the cost of FSLIC-assisted cases for that year and to diversify financial services. Bank holding only. This actual figure is computed in relation to estimated costs had the institutions involved in the FSLIC-assisted cases for that year companies, generally prohibited from interstate been liquidated. expansion, acquired several weak out-of-state SOURCE. Federal Home Loan Bank Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 Federal Reserve Bulletin • March 1985 thrift institutions. While offering interstate ex- tive to total costs had the institutions been liquipansion to banks, these mergers provided sub- dated (table A.3). This figure fell from about 75 stantial capital infusion to the thrift industry and percent for the period between January and May held down the costs of the FSLIC. Many inter- 1981, to 18 percent for the remainder of 1981, state mergers eliminated the need for an FSLIC when four interstate mergers involving particupayout. In addition, the threat of an interstate or larly weak institutions were approved. The prean interindustry merger, through which a larger sent value of the total cost of FSLIC-assisted firm would gain entry into the state, often moti- cases continued to rise in absolute terms. This vated stronger institutions within the state to cost, however, fell dramatically as a percent of acquire ailing firms. potential total liquidation costs, and continued to The degree to which the interstate option decline as a result of the provisions of the Garnreduced the financial drain on the FSLIC is St Germain Act, which eased interstate and reflected in the sharp decrease in the present interindustry limitations and thus provided reguvalue of the cost of FSLIC-assisted cases rela- lators with a wider range of options. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

157 Industrial Production Released for publication January 15 industrial output in December 1984 was 6.4 percent higher than 12 months earlier while the Industrial production increased an estimated 0.6 annual average output in 1984 was about 11 percent in December following an increase of 0.4 percent higher than that of 1983. percent in November and a decline of 0.3 percent In market groupings, the production of conin October. In December, increases occurred sumer goods increased 0.6 percent in December among all major groupings of the index. In the as output of durable consumer goods rose 0.8 fourth quarter of the year, production was about percent and nondurable consumer goods inthe same as in the third quarter. However, creased 0.5 percent. In December, auto assem- 1967 = 100 1967 = 100 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 Federal Reserve Bulletin • March 1985 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1984 1984 DDDeeeccc... 111999888333 tttooo DDDeeeccc... Nov. Dec. Aug. Sept. Oct. Nov. Dec. 111999888444 Major market groupings Total industrial production 165.2 166.2 .1 -.6 -.3 .4 .6 6.4 Products, total 167.6 168.7 -.1 -.5 .4 .4 .7 7.2 Final products 166.0 167.0 -.1 -.3 .4 .5 .6 7.6 Consumer goods 162.8 163.7 -.8 -.6 .1 .6 .6 3.8 Durable 162.4 163.7 -.7 -1.8 -.7 2.5 .8 3.2 Nondurable 163.0 163.8 -.9 .0 .4 -.1 .5 4.1 Business equipment.. 187.1 188.5 1.1 -.6 .4 .0 .7 12.7 Defense and space... 141.8 143.1 .7 2.0 1.1 .5 .9 13.8 Intermediate products.. 173.7 174.7 -.4 -1.2 .4 .0 .6 5.6 Construction supplies 158.3 159.6 -.6 -1.7 .3 -.3 .8 5.3 Materials 161.5 162.3 .3 -.7 -1.3 .5 .5 5.0 Major industry groupings Manufacturing 167.1 168.1 .2 -.6 -.1 .4 .6 7.2 Durable 157.6 158.3 .4 -.4 -.1 .4 .4 9.2 Nondurable. 180.7 182.3 -.1 -.8 -.2 .4 .9 4.8 Mining 125.4 126.7 -1.2 .3 -3.8 1.3 1.0 2.4 Utilities 180.5 178.8 -.7 .2 -.2 .0 -.9 -2.0 NOTE. Indexes are seasonally adjusted. blies increased to an annual rate of 8.1 million In industry groupings, manufacturing output units following a November rate of 7.9 million. rose 0.6 percent in December following an in- Production of home goods rose about 0.5 percent crease of 0.4 percent in November and a decline in December. Output of business equipment in- of 0.1 percent in October. Durable manufaccreased 0.7 percent following revised estimates turing was up 0.4 percent although steel producthat showed no change in November and an tion continued to decline. Nondurable manufacincrease of 0.4 percent in October. Defense and turing increased 0.9 percent. Mining output rose space equipment rose 0.9 percent in December, 1.0 percent in December, while utility output fell while construction products increased 0.8 per- 0.9 percent, due primarily to reduced generation cent. Output of materials rose 0.5 percent as of electricity. nondurable materials, led by chemicals and paper, increased 1.0 percent. Production of basic metals declined further in December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

159 Announcements PUBLICATION OF HANDBOOK ON $163 million. Other deductions from current net ADJUSTABLE-RATE MORTGAGES income amounted to $413 million. These deductions resulted primarily from a loss of $455 The Federal Reserve Board and the Federal million on assets denominated in foreign curren- Home Loan Bank Board have announced publi- cies, almost entirely related to revaluation of cation of a new pamphlet, the "Consumer Hand- these assets to market exchange rates, and a gain book on Adjustable Rate Mortgages." The book- of $49 million on sales of U.S. government let explains how adjustable-rate mortgages obligations. (ARMs) work—including such features as index Net income before dividends, additions to rates, margins, interest rate and payment caps, surplus, and payments to the Treasury totaled and negative amortization—their risks and ad- $16,309 billion. Statutory dividends to member vantages, and ways for consumers to reduce banks were $93 million; additions to Reserve risk. It also includes a checklist to help home- Bank surplus were $162 million; and payments to buyers compare the features of one ARM with the Treasury amounted to $16,054 billion. another or with a fixed-rate mortgage. Under the policy established by the Board of The booklet was prepared in consultation with Governors at the end of 1964, all net income after many other federal agencies and trade and con- the statutory dividend to member banks and the sumer groups at the request of the Congress. amount necessary to equate surplus to paid-in Copies are available free of charge from Publica- capital is transferred to the U.S. Treasury as tions Services, Board of Governors of the Feder- interest on Federal Reserve notes. al Reserve System, Washington, D.C. 20551, or from the Federal Reserve Banks. REVISION TO LIST OF OTC STOCKS SUBJECT TO MARGIN INCOME OF FEDERAL RESERVE BANKS The Federal Reserve Board has published a Preliminary figures released January 14, 1985, revised list of over-the-counter (OTC) stocks indicate that gross income of the Federal Re- that are subject to its margin regulations, effecserve Banks amounted to $18,068 billion during tive February 12, 1985. 1984. More than $16 billion of this was paid to the The list includes all over-the-counter securities U.S. Treasury. designated by the Board pursuant to its estab- Income of the Federal Reserve System is lished criteria as well as all securities qualified derived primarily from interest accrued on U.S. for trading in the National Market System government securities that the Federal Reserve (NMS). All securities that have been designated has acquired through open market operations. as NMS securities, effective through February Income from the provision of financial services 12, 1985, are included in the list. Additional OTC amounted to $574 million. securities may be designated as NMS securities Operating expenses of the 12 Reserve Banks in the interim between the Board's quarterly and branches totaled $1,101 billion including publications and will be immediately marginable. $117 million for earnings credits granted to de- The next publication of the Board's list is schedpository institutions. Assessment by the Board uled for May 1985. of Governors for Board expenditures totaled $82 This List of Marginable OTC Stocks supermillion, and the cost of currency amounted to sedes the revised list that was effective on No- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 Federal Reserve Bulletin • March 1985 vember 13, 1984. Changes that have been made include: (1) a shift of federal agency securities in the list, which now includes 2,283 OTC stocks, held in the trading account into the new U.S. are as follows: 133 stocks have been included for government securities item, resulting in a break the first time, 88 under NMS designation; 55 of about $2 billion because back data were not stocks previously on the list have been removed revised; (2) a shift of about $2.2 billion of bankers for substantially failing to meet the requirements acceptances, commercial paper, and negotiable for continued listing; 40 stocks have been re- CDs that are held for trading purposes into other moved for reasons such as listing on a national securities from loans and cash assets; and (3) securities exchange or involvement in an acquisi- exclusion of an estimated $1.3 billion of loans tion. and securities of noninsured domestically char- In addition to NMS-designated securities, the tered banks from the bank credit series due to Board will continue to monitor the market activi- inadequate data from these banks. Also, several ty of other OTC stocks to determine which memoranda series, including loan sales to affilistocks meet the requirements for inclusion and ates, that were formerly published in table 1.23 continued inclusion. have been discontinued. The revisions in sample blowups were derived from quarterly reports of condition covering the REVISIONS TO STATISTICAL TABLES IN THE period from June 30, 1981, through December 31, FEDERAL RESERVE BULLETIN 1983. The revised bank credit estimates reflect corrections of reporting errors associated mainly Loans and Securities (table 1.23) with classification problems that arose with establishment of International Banking Facilities in The bank credit series that is published regularly 1981 and with changes in quarterly condition in table 1.23 of the FEDERAL RESERVE BULLETIN reports in 1984. These changes in blowup ratios has been revised in this issue. The revision and corrections of data reduced annual growth of reflects updating of sample blowup ratios that are total bank credit about 2 percentage points in derived from call reports, corrections in previ- 1981 and by relatively small amounts in subseously reported data, definitional changes, and quent years. Seasonal factor revisions have tendrevisions of seasonal factors. The definitional ed to lower growth in loans and investments in changes reflect, for the most part, changes in months at the beginning and end of recent years, classification of assets on the quarterly condition while raising growth rates in most other months. reports from which sample blowup ratios are Revised back data are available for the period derived. from December 1972 through December 1984 Among the definitional changes, the most im- together with a description of several breaks in portant are the shift of certain obligations of series over this period. Requests for these data states and political subdivisions from other secu- should be addressed to the Banking Section, rities to loans and the shift of federal agency Board of Governors of the Federal Reserve securities from other securities to a new combi- System, Washington, D.C. 20551. nation with U.S. Treasury securities. The latter combination, which raised U.S. government se- Assets and Liabilities of Commercial curities and lowered other securities $166.8 bil- Banking Institutions (table 1.25) lion as of December 31, 1983, has been estimated back to 1973. The shift of state and political The estimates of assets and liabilities of commersubdivision obligations to loans was not carried cial banking institutions that are published each back before January 1984; consequently, there month in table 1.25 in the statistical section of the are offsetting breaks in series lowering the other BULLETIN have been revised. The revised series securities and raising the total loan components differs from the previous series because of of bank credit $33.2 billion at the beginning of benchmark adjustments, definitional changes in 1984. Other definitional changes that had smaller some items, a change in the universe of institueffects on the series at the beginning of 1984 tions covered, and changes in estimation meth- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 161 ods. A few items in the old series, which ended in The definition of other securities in the series December 1983, have been revised to conform that begins in 1984 differs from that in the old more closely to the new definitions; for most series in several ways: U.S. government agency items, however, there is a break in series in obligations have been moved to U.S. govern- January 1984. Table 1.25 shows the new series ment securities, certain obligations of state and for most of 1984, as well as data for December political subdivisions have been moved to all 1983 for the revised old series. other loans, and trading account assets other The definition of nonbank loans in the series than securities are now included in other securihas been changed to include certain obligations ties. Data through December 1983 have been of state and political subdivisions, which were revised to exclude U.S. government agency obliformerly included in other securities. This shift gations (except those in trading accounts), but causes a break of +$33.2 billion in nonbank loans the series before 1984 was not revised to conform at the beginning of 1984. There is a partially to the other changes in definition. The shift of offsetting transfer of -$1.6 billion at the begin- state and political obligations results in a break in ning of 1984 because certain acceptances and series of -$33.2 billion at the beginning of 1984, commercial paper formerly reported as loans while the inclusion of trading account assets were shifted to the trading account. other than securities causes a partially offsetting The new series shows four categories of non- break of +$2.2 billion. bank loans: commercial loans, real estate loans, In the new series, deposits are grouped differloans to individuals, and all other loans; the state ently than they were in the old series. The new and political obligations that were shifted from categories are transaction deposits, nontransacother securities are included in all other loans. tion savings deposits, and time deposits. The old Bank loans are now shown separately and are categories were demand deposits, savings deposincluded both in total loans and in total loans and its, and time deposits. Only time deposits and investments. In the old series, lack of adequate total deposits are defined the same way in the data made it impossible to show bank loans new and old series. separately after October 1980. For purposes of Improvements in estimation methods resulted comparison, however, an estimate of bank loans in a different allocation among the liability catewas made for December 1983 and is shown in the gories of borrowings, other liabilities, and the table. residual (assets less liabilities). Borrowings are In the series that begins in 1984 holdings of higher in the new series than in the old, and the securities are divided into investment securities residual is smaller. and trading account securities. Investment secu- The new series includes only insured commerrities are further divided into U.S. government cial banks. The exclusion of noninsured banks securities and other securities. These break- resulted in a reduction of $0.8 billion in nonbank downs are not available before 1984. To facilitate loans and $0.5 billion in securities. comparison between the old and new series, Data in the new series, as in the old, are based table 1.25 also shows, as memo items, total U.S. on weekly reports of a panel of domestically government securities and all other securities. chartered large and small banks and a panel of U.S. government securities now includes both large U.S. branches and agencies of foreign U.S. Treasury securities and U.S. government banks. The large bank panel was changed at the agency obligations; formerly U.S. government beginning of 1984 to include banks that had agency obligations were included in other securi- domestic assets of $1.4 billion or more in Decemties. Data for U.S. government securities before ber 1982. The panel of small bank reporters now 1984 have been revised to conform more closely includes both member and nonmember banks to the new definition. U.S. government agency and a larger number of banks that report loan and obligations held in trading accounts remain in securities detail. The branch and agency panel is other securities through December 1983, howev- unchanged. er, which causes a +$2 billion break in series at Back data for assets and liabilities of commerthe beginning of 1984. cial banking institutions, revised to incorporate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin • March 1985 benchmark adjustments and partially revised to PROPOSED ACTIONS be more comparable with the new series, are available from January 1973 to December 1984. The Federal Reserve Board has requested com- Requests for these data may be sent to the ment by February 14, 1985, on a proposal that Banking Section, Board of Governors of the would lift some restrictions on the operation of Federal Reserve System, Washington, D.C. nonbank affiliates of bank holding companies. 20551. The Board also requested comment by March 29, 1985, on whether to initiate rulemaking that Two TABLES DELETED FROM STATISTICAL would establish the framework for bank holding SECTION OF BULLETIN companies to engage in real estate investment activities. Table 1.29, Large Weekly Reporting Commercial Banks—Balance Sheet Memoranda, will no long- CHANGES IN BOARD STAFF er appear in the BULLETIN. Data from table 1.29 The Board of Governors has announced the have been transferred to two other tables: lines retirement of Jack M. Egertson, Assistant Direc- 1-7 will now appear as memo items in table 1.26; tor in the Division of Banking Supervision and lines 8-10, as memo items in table 1.28. Regulation, effective February 1, 1985. Table 1.34, Terms of Lending at Commercial The Board has also announced the resignation Banks, has been discontinued as a monthly table. of John E. Ryan, Director of the Division of It will appear quarterly beginning in the spring of Banking Supervision and Regulation, effective 1985. February 15, 1985. The Board has announced the promotion of PRICE INCREASE FOR SUBSCRIPTION TAPES William Taylor, Deputy Director of the Division of Banking Supervision and Regulation, to Direc- The Board has announced that beginning with tor of the Division, effective February 15. He will the release for December 31, 1984, the price for succeed John E. Ryan. Mr. Taylor has been a the Call and Income Subscription Tapes will be member of the Board's staff since 1976. He has a $325 for each period requested. The increase in B.A. from Cornell College, Mount Vernon, price reflects the costs associated with expand- Iowa, and attended the Stonier School of Banking the coverage of the file to include insured ing at Rutgers University. mutual savings banks and New York State investment companies, redesigning the file to SYSTEM MEMBERSHIP. merge all reports for one institution into a single ADMISSION OF STATE BANKS record, and producing new tape documentation. Furthermore, the new price will apply to each The following banks were admitted to memberperiod (June 1960 to present) covered by the ship in the Federal Reserve System during the subscription service. period January 1 through February 1, 1985: The Board has announced also that, effective immediately, the subscription tapes for all peri- California ods will be issued in the new format. The tape Napa Vintage Bank formats issued previously are no longer avail- Colorado able. One copy of the tape documentation, which Montrose Mountain Industrial Bank applies to all periods, is included in the new Florida purchase price of $325. However, the cost of Maitland First American Bank separate orders for the subscription tape docu- of Orange County mentation and of additional copies will continue Naples Mercantile Bank of Naples to be $35 per copy. Missouri Please direct any questions about the content Jefferson City... Missouri Independent Bank of the tape documentation to Robert Chamberlin, Virginia Data Request Coordinator (telephone, 202-452- Chesterfield County Peoples Bank 2816). of Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

163 Legal Developments BANK HOLDING COMPANY, BANK MERGER, AND of banking resources in Texas, or in any significant BANK SERVICE CORPORATION ORDERS ISSUED effect on competition in the San Antonio market. BY THE BOARD OF GOVERNORS The financial and managerial resources and future prospects of Applicant and Bank are consistent with Orders Issued Under Section 3 of Bank Holding approval of this application, particularly in light of Company Act Bank's strong financial condition, Applicant's low leverage position, and the commitments Applicant has CapitalBank Corporation made in connection with this application. Applicant San Antonio, Texas has proposed no new services for Bank. However, there is no evidence that the banking needs of the Order Approving Formation of a Bank Holding community to be served are not being met. According- Company ly, considerations relating to the convenience and needs of the community are consistent with approval. CapitalBank Corporation, San Antonio, Texas, has Based on the foregoing and other facts of record, the applied for the Board's approval under section 3(a)(1) Board has determined that approval of the application of the Bank Holding Company Act ("Act") would be consistent with the public interest and that (12 U.S.C. §§ 1841-1849) to become a bank holding the application should be and hereby is approved. The company by acquiring all of the voting shares of First transaction shall not be consummated before the thirti- City Bank-Central Park, San Antonio, Texas eth calendar day following the effective date of this ("Bank"). Order, or later than three months after the effective Notice of the application, affording interested per- date of this Order, unless that period is extended for sons an opportunity to submit comments, has been good cause by the Federal Reserve Bank of Dallas, given in accordance with section 3(b) of the Act. The acting pursuant to delegated authority, or by the time for filing comments has expired, and the Board Board. has considered the application and all comments re- By order of the Board of Governors, effective ceived in light of the factors set forth in section 3(c) of January 31, 1985. the Act. Applicant, recently organized for the purpose of Voting for this action: Chairman Volcker and Governors becoming a bank holding company, has no business Martin, Wallich, Partee, Rice, Gramley, and Seger. activities and no operating history. Bank is currently a subsidiary of First City Bancorporation of Texas, JAMES MCAFEE Houston, Texas ("First City"). As part of its proposed [SEAL] Associate Secretary of the Board acquisition of Cullen/Frost Bankers, Inc., San Antonio, Texas, First City has agreed to sell Bank to Applicant after the acquisition is approved by the Central National Bancshares, Inc. appropriate governmental agencies. San Angelo, Texas Bank has total deposits of $168.7 million, representing less than 0.15 percent of the total deposits in Order Approving Acquisition of a Bank commercial banks in Texas.1 Bank operates in the San Antonio banking market,2 where it is the ninth largest Central National Bancshares, Inc., San Angelo, Texof 40 commercial banks. Consummation of the proas, a bank holding company within the meaning of the posed acquisition would not result in the concentration Bank Holding Company Act ("Act")(12 U.S.C. § 1841 et seq.), has applied for the Board's prior approval under section 3(a)(3) of the Act (12 U.S.C. 1. Deposit data are as of December 31, 1983; market structure data § 1842(a)(3)) to acquire 88.5 percent of the voting are as of October 31, 1984. shares of Central National Bank-North, San Angelo, 2. The San Antonio banking market consists of Bexar County and the town of Boerne in Kendall County, Texas. Texas ("Bank"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • March 1985 Notice of the application, affording opportunity for smallest bank in the market with total deposits of $15.6 interested persons to submit comments, has been million, or 2.1 percent of total deposits in commercial given in accordance with section 3(b) of the Act. The banks in the market. In 1983, Applicant and Bank time for filing comments has expired and the Board together controlled 34.9 percent of total deposits in has considered the application and all comments re- commercial banks in the market.5 Accordingly, some ceived in light of the factors set forth in section 3(c) of existing competition was eliminated when Applicant's the Act (12 U.S.C. § 1842(c)). principals acquired Bank in 1983. Applicant is the 29th largest commercial banking However, the Board believes the anticompetitive organization in Texas, controlling two banks with total effects which resulted from acquisition of Bank by deposits of $267.2 million, representing 0.2 percent of Applicant's principals were mitigated by several factotal deposits in commercial banks in the state. Bank is tors, including the number and size of the remaining the 841st largest commercial banking organization in competing banking organizations in the market, in- Texas with total deposits of $14.3 million, representing cluding two of the top five banking organizations in less than 0.1 percent of total deposits in commercial Texas, and the effect of competition from thrift institubanks in Texas.1 Upon consummation of this propos- tions in the market. The Board has previously indicatal, Applicant would become the 26th largest commer- ed that thrift institutions have become, or have the cial banking organization in Texas with total deposits potential to become, major competitors of commercial of $281.5 million, representing approximately 0.2 per- banks.6 The record indicates that in 1983, thrift institucent of total deposits in commercial banks in Texas. tions in the San Angelo market were aggressively Consummation of this proposal would not result in the competing with commercial banks, offering a wide concentration of banking resources in Texas. range of consumer services, including NOW accounts, Both Applicant and Bank compete in the San Ange- and commercial and industrial loans. Further, the lo banking market.2 Applicant is the largest of seven largest depository institution in the market was a thrift commercial banking organizations, controlling 33.1 institution which controlled 33.7 percent of total deposits in depository institutions in the market, a marpercent of total deposits in commercial banks in the ket share almost twice that of Applicant at that time. If market. Bank is the smallest commercial banking only 50 percent of the thrift deposits were included in organization, controlling 1.8 percent of total deposits in commercial banks in the market.3 the product market, the San Angelo market would have been considered to be moderately concentrated Applicant and Bank have been under common conin 1983 with a pre-acquisition Herfindahl-Hirschman trol since May of 1983, when principals of Applicant Index ("HHI") of 1675, which increased by 70 points acquired Bank, then a savings and loan association to 1745 upon Bank's acquisition by Applicant's princiwhich was later converted to a national bank. In pals.7 Accordingly, the Board concludes that consumanalyzing the competitive effects of a proposal such as mation of this proposal would have no significant this one, involving banking organizations located in adverse effects on existing competition in this market. the same market and under common control, the Board considers the competitive effects of the transac- The financial and managerial resources and future tion whereby common control of the institutions was prospects of Applicant, Applicant's subsidiaries, and established.4 Bank are generally satisfactory. Applicant has pro- Principals of Applicant acquired Bank in May of posed no new services for Bank. However, there is no 1983 with the intention of converting Bank from a evidence in the record indicating that the banking savings and loan association to a national bank. Ac- needs of the community to be served are not being cordingly, the Board has analyzed the competitive met. Accordingly, considerations relating to the coneffects of the proposal as if Bank were a commercial venience and needs of the community to be served are bank in May of 1983. On this basis, Applicant in 1983 consistent with approval. was the largest of seven commercial banking organizations in the market controlling total deposits of $246.1 million, or 32.8 percent of total deposits in commercial 5. The Board notes that Applicant and Bank, respectively, conbanks in the market. Bank would have been the trolled 18.3 and 1.2 percent of total deposits in all depository institutions in the market in 1983. 6. See National City Corporation, 70 FEDERAL RESERVE BULLETIN 743 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE BULLETIN 225 (1984); First Tennessee National Corporation, 69 FEDERAL RE- 1. Statewide banking data are as of December 31, 1983. SERVE BULLETIN 298 (1983). 2. The San Angelo banking market is defined as the San Angelo 7. Under the Department of Justice's revised Merger Guidelines (49 MSA. Federal Register 26,823 (1984)), a market with a post-merger HHI 3. Market data are as of June 30, 1984. between 1000 and 1800 is considered moderately concentrated. In 4. See Mid-Nebraska Bancshares, Inc. v. Board of Governors, 627 such markets, the Department is unlikely to challenge a merger that F.2d 26 (D.C. Cir., 1980). produces an increase in the HHI of less than 100 points. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 165 Based on the foregoing and other facts of record, the ing organization in the Houston market and consum- Board has determined that approval of the application mation of the proposal would not result in any adverse would be consistent with the public interest and that effects upon competition or increase the concentration the application should be and hereby is approved. The of banking resources in any relevant area. Accordingtransaction shall not be consummated before the thirti- ly, competitive considerations are consistent with apeth calendar day following the effective date of this proval. Order, or later than three months after the effective The financial and managerial resources of Applicant date of this Order, unless such period is extended for and Bank are generally satisfactory and the future good cause by the Board or the Federal Reserve Bank prospects for each appear favorable, particularly in of Dallas, acting pursuant to delegated authority. light of certain commitments made by Applicant in By order of the Board of Governors, effective connection with this application. In its consideration January 14, 1985. of this application, the Board has applied the capital standards for small one-bank holding companies.3 Voting for this action: Chairman Volcker and Governors Although these standards generally are applicable to Martin, Wallich, Partee, Rice, Gramley, and Seger. bank holding company formations with subsidiary bank assets totalling $150 million or less, the Board JAMES MCAFEE has permitted larger bank holding company formations [SEAL] Associate Secretary of the Board to be evaluated under these standards if the Board finds that circumstances warrant such an exception.4 The Board, after reviewing all the facts of record, finds that an exception is warranted in this case.5 Foremost Bancshares, Inc. Houston, Texas The Board notes that Bank's asset size of $150.6 million is only slightly above $150 million, and that Order Approving Formation of a Bank Holding Bank operates much like a community bank given its Company location outside of downtown Houston and the marketing philosophy of Bank's management. Moreover, approval of this application would permit the current Foremost Bancshares, Inc., Houston, Texas, has apmanagement of Bank to be maintained, which the plied for the Board's approval under section 3(a)(1) of Board finds in this instance to be a substantial public the Bank Holding Company Act (12 U.S.C. benefit. § 1842(a)(1)) to become a bank holding company by acquiring all of the voting shares of South Main Bank, Although consummation of this proposal would re- Houston, Texas ("Bank"). sult in no immediate changes in the banking services Notice of the application, affording opportunity for offered by Bank, considerations relating to the conveinterested persons to submit comments, has been nience and needs of the community to be served are given in accordance with section 3(b) of the Act. The consistent with approval. Accordingly, the Board has determined that consummation of the proposed transtime for filing comments has expired, and the Board action would be in the public interest and that the has considered the application and all comments reapplication should be approved. ceived in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). Applicant, a nonoperating corporation with no subsidiaries, was organized for the purpose of becoming a bank holding company by acquiring Bank, which holds deposits of approximately $146.4 million.1 Upon ac- 3. "Federal Reserve Board Policy Statement for Assessing Financial Factors in the Formation of Small One-Bank Holding Compaquisition of Bank, Applicant would control the 54th nies," 66 FEDERAL RESERVE BULLETIN 320 (1980); Federal Reserve largest bank in Texas and approximately 0.11 percent Regulatory Service 114-855. of the total deposits in commercial banks in the state. 4. Continental Bancshares, Inc., 70 FEDERAL RESERVE BULLETIN 222 (1984); Tulsa Commerce Bancshares, Inc., 68 FEDERAL RESERVE Bank is the 21st largest of 114 banks in the Houston BULLETIN 196 (1982); The Union of Arkansas Corporation, 66 FEDERbanking market2 and holds 0.43 percent of the total AL RESERVE BULLETIN 659 (1980). 5. Principals of Applicant control two one-bank holding companies deposits in commercial banks in the market. Applithat operate outside of the Houston banking market. In circumstances cant's principals are not principals of any other bank- such as this where a chain banking organization exists, the Board analyzes the one-bank holding company proposal before it, as well as the financial and managerial resources and prospects of the chain, within the context of the Board's multi-bank holding company standards whether or not the chain's assets are above $150 million. In this 1. Banking data are as of December 31, 1983. case, however, Applicant's principals have committed to divest the 2. The Houston banking market is approximated by the Houston voting shares of the banks that constitute the chain so that no chain Ranally Metro Area. banking relationship would exist upon consummation of this proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • March 1985 On the basis of the record, the application is ap- affiliated with any other banking organization in the proved for the reasons summarized above. The trans- relevant market, and consummation of the proposed action shall not be made before the thirtieth calendar transaction would not result in any adverse effects day following the effective date of this Order, or later upon competition or increase the concentration of than three months after the effective date of this banking resources in any relevant area. Order, unless such period is extended for good cause The Board has indicated on previous occasions that by the Board, or by the Federal Reserve Bank of a bank holding company should serve as a source of Dallas pursuant to delegated authority. financial and managerial strength to its subsidiary By order of the Board of Governors, effective bank and that the Board would closely examine the January 28, 1985. condition of an applicant in each case with this consideration in mind.3 In connection with this proposal, Voting for this action: Chairman Volcker and Governors Applicant would incur a sizeable amount of debt, Martin, Wallich, Partee, Rice, Gramley, and Seger. which it proposes to service from Bank's earnings. However, Applicant's debt retirement projections ap- JAMES MCAFEE pear to be overly optimistic in light of Bank's recent [SEAL] Associate Secretary of the Board record of performance. Using less optimistic projections based upon Bank's recent record of performance, the Board concludes that Applicant does not P.H. Bancorporation, Inc. have sufficient financial flexibility to be able to reduce its indebtedness in a satisfactory manner while main- Pleasant Hope, Missouri taining adequate capital levels at Bank.4 Based on these and other facts of record, the Board concludes Order Denying Formation of Bank Holding Company that financial considerations under the Act weigh against approval of this application. P.H. Bancorporation, Inc. has applied for the Board's approval under section 3(a)(1) of the Bank Holding Applicant has proposed no new services for Bank Company Act ("Act")(12 U.S.C. § 1842(a)(1)) to be- upon consummation of this proposal. Considerations come a bank holding company by acquiring at least 80 relating to the convenience and needs of the communipercent of the voting shares of Pleasant Hope Banc- ty to be served are consistent with but lend no weight shares, Inc., a bank holding company within the toward approval of this application. meaning of the Act, and thereby indirectly to acquire On the basis of the facts of record of this applica- The Pleasant Hope Bank, all of Pleasant Hope, Mis- tion, the Board concludes that the banking considersouri. ations involved in this proposal are adverse and are Notice of the application, affording opportunity for not outweighed by any relevant competitive or conveinterested persons to submit comments, has been nience and needs considerations. Accordingly, it is the Board's judgment that approval of the application given in accordance with section 3(b) of the Act. The would not be in the public interest and the application time for filing comments has expired, and the Board should be and hereby is denied for the reasons summahas considered the application and all comments rerized above. ceived in light of the factors set forth in section 3(c) of By order of the Board of Governors, effective the Act (12 U.S.C. § 1842(c)). January 3, 1985. Applicant, a nonoperating Missouri corporation with no subsidiaries, was organized for the purpose of becoming a bank holding company by acquiring Bank, Voting for this action: Chairman Volcker and Governors which holds deposits of $23.5 million.1 Upon consum- Martin, Wallich, Rice, and Gramley. Absent and not voting: Governors Partee and Seger. mation of this proposal, Applicant would control the 365th largest commercial bank in Missouri, holding JAMES MCAFEE approximately 0.1 percent of total deposits in commer- [SEAL] Associate Secretary of the Board cial banks in the state. Bank is the third largest of five commercial banking organizations in the Polk County banking market,2 and 3. See Singer & Associates, 70 FEDERAL RESERVE BULLETIN 883 holds 15.9 percent of total deposits in commercial (1984); Central Minnesota Bancshares, Inc., 70 FEDERAL RESERVE banks in the market. Applicant's principals are not BULLETIN 877 (1984); Cambridge Financial Corporation, 69 FEDERAL RESERVE BULLETIN (1983). 4. The Board has previously stated that in small one-bank holding company formations, it expects, among other things, that the bank 1. Banking data are as of June 30, 1984, unless otherwise indicated. holding company's debt-to-equity ratio be reduced to no more than 30 2. The Polk County banking market is defined as all of Polk percent within 12 years. Policy Statement for Formation of Small County, Missouri. One-Bank Holding Companies, 12 C.F.R. Part 225, Appendix B. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 167 Sweetwater Valley Corporation Herfindahl-Hirschman Index ("HHI") of 1378. Upon Sweetwater, Tennessee consummation of this proposal, the four-firm concentration ratio would increase to 77.3 percent and the Order Approving Acquisition of Bank HHI would increase by 362 points to 1740.4 While consummation of the proposal would elimi- Sweetwater Valley Corporation, Sweetwater, Tennes- nate some existing competition between Applicant and see, a bank holding company within the meaning of the Bank in the relevant banking market, eight other Bank Holding Company Act, has applied for the banking organizations would remain as competitors. Board's approval under section 3(a)(3) of the Bank In addition, the presence of four thrift institutions that Holding Company Act (12 U.S.C. § 1842(a)(3)) to ac- control approximately 30 percent of the total deposits quire City and County Bank of McMinn County, in the market mitigates the anticompetitive effect of Athens, Tennessee. the transaction.5 These thrift institutions offer a full Notice of the application, affording opportunity for range of transaction accounts (including NOW acinterested persons to submit comments, has been counts) and offer consumer lending services. Furthergiven in accordance with section 3(b) of the Act more, the thrift institutions in the Athens banking (12 U.S.C. § 1842(b)). The time for filing comments market make commercial and industrial loans.6 Based has expired, and the Board has considered the applica- on these considerations, the Board concludes that tion and all comments received, including those of the consummation of the proposal would not have a State of Tennessee Department of Financial Institu- substantial anticompetitive effect in the Athens, Tentions recommending approval of this application, in nessee, banking market. light of the factors set forth in section 3(c) of the Act The financial and managerial resources of Applicant (12 U.S.C. § 1842(c)). are satisfactory and consistent with approval of the Applicant controls one bank, Sweetwater Valley application. The Board, in acting on this application, Bank, Sweetwater, Tennessee, which holds deposits has considered the fact that approval would facilitate of $50.9 million,1 representing 0.2 percent of the total the injection of additional capital into Bank and deposits in commercial banks in Tennessee. Bank, strengthen its financial and managerial resources and with deposits of $29.4 million, controls 0.1 percent2 of prospects. Banking factors, therefore, lend weight the total deposits held in commercial banks in Tennes- toward approval of the transaction. Convenience and see. Upon consummation of this proposal, Applicant needs considerations are also consistent with approval would control less than 0.4 percent of the total depos- of this proposal. its in commercial banks in the State. Accordingly, Accordingly, it is the Board's judgment that con- Applicant's acquisition of Bank would have no signifi- summation of the proposal would be in the public cant adverse effect on the concentration of banking interest and that the application should be approved. resources in Tennessee. On the basis of the record, the application is approved Applicant and Bank both compete in the Athens, for the reasons summarized above. The transaction Tennessee, banking market.3 Applicant's existing sub- shall not be made before the thirtieth calendar day sidiary bank is the second largest of ten commercial following the effective date of this Order or later than banking organizations in this market and controls 17.8 three months after the effective date of this Order, percent of the total deposits in commercial banks unless such period is extended for good cause by the therein. Bank is the fifth largest commercial bank in the market, and controls 10.2 percent of the total deposits in commercial banks therein. Upon consum- 4. Under the revised Department of Justice Merger Guidelines, 49 mation of this proposal, Applicant would become the Federal Register 26,823 (June 29, 1984), when a market has a postmerger HHI between 1000 and 1800, the Department is likely to largest banking organization in the market, and control challenge a transaction that produces an increase in the HHI of more 28 percent of the total deposits in commercial banks in than 100 points unless other facts of record indicate that the merger is the market. The Athens, Tennessee, banking market is not likely substantially to lessen competition. 5. The Board has previously determined that thrift institutions have considered to be moderately concentrated, with a become, or at least have the potential to become, major competitors of four-firm concentration ratio of 67 percent and a banks. National City Corporation, 70 FEDERAL RESERVE BULLETIN 743 (1984); NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225 (1984); First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983). 6. If 50 percent of the deposits held by thrift institutions were included in the calculation of market concentration, the pre-acquisi- 1. All banking data are as of June 30, 1983, unless otherwise noted. tion four-firm concentration ratio would be 57.0 percent and the HHI 2. As of December 31, 1983. would be 1097. Upon consummation of this proposal, the four-firm 3. The Athens, Tennessee, banking market is approximated by all concentration ratio would increase to 65.4 percent and the HHI would of McMinn County, the city of Decatur in Meigs County, and the increase by 245 to 1342. Applicant's resulting market share would be cities of Madisonville and Sweetwater in Monroe County. 23 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Federal Reserve Bulletin • March 1985 Board, or by the Federal Reserve Bank of Atlanta In addition, Hawaiian Trust provides certain ancillary pursuant to delegated authority. services, including physical and clerical real estate By order of the Board of Governors, effective management services; real estate appraisals; real es- January 16, 1985. tate consulting; and tax preparation. In order to approve an application under section Voting for this action: Chairman Volcker and Governors 4(c)(8) of the Act, the Board must determine that the Wallich, Partee, Rice, and Gramley. Absent and not voting: proposed activity is "so closely related to banking or Governors Martin and Seger. managing or controlling banks as to be a proper incident thereto . . ." 12 U.S.C. § 1843(c)(8). The JAMES MCAFEE Board has determined that Hawaiian Trusi engages in [SEAL] Associate Secretary of the Board the following nonbanking activities that are permissible under sections 225.25(b)(3), (4), (7) and (13), respectively, of the Board's Regulation Y, 12 C.F.R. Orders Issued Under Section 4 of Bank Holding §§ 225.25(b)(3), (4), (7) and (13): trust company func- Company Act tions, including escrow and notary services and collection services; investment or financial advice; data Bancorp Hawaii, Inc. processing; and real estate appraising.2 Honolulu, Hawaii Hawaiian Trust provides tax preparation services for individuals that are trust customers. Although the Order Approving Acquisition of a Trust Company majority of these services are provided in a fiduciary capacity and are a permissible trust company function, Bancorp Hawaii, Inc., Honolulu, Hawaii, a bank Hawaiian Trust also provides such services in a nonfiholding company within the meaning of the Bank duciary capacity. The Board has not previously deter- Holding Company Act ("Act"), 12 U.S.C. § 1841 mined that tax preparation services performed in a et seq., has applied for the Board's approval under nonfiduciary capacity are a permissible nonbanking section 4(c)(8) of the Act, 12 U.S.C. § 1843(c)(8), and activity. On March 2, 1984, the Board invited public section 225.23 of the Board's Regulation Y, 12 C.F.R. comment on a proposal to add a number of activities, § 225.23, to acquire 100 percent of the voting shares of including tax preparation services for individuals, to Hawaiian Trust Company, Limited ("Hawaiian the list of nonbanking activities permissible under the Trust"), Honolulu, Hawaii. Board's Regulation Y. Notice of the application, affording interested per- The Board has received numerous comments supsons an opportunity to submit comments on the pro- porting the proposal to find that tax preparation serposal, has been duly published, 49 Federal Register vices for individuals is so closely related to banking or 38,705 (1984). The time for filing comments has ex- managing or controlling banks as to be a proper pired and the Board has considered the application and incident thereto. Many commenters indicated that tax all comments received in light of the public interest preparation services are currently performed through factors set forth in section 4(c)(8) of the Act. Applicant, with total assets of $3.7 billion,1 has one subsidiary bank, Bank of Hawaii, Honolulu, Hawaii. 2. Hawaiian Trust provides property management services for Applicant proposes to acquire Hawaiian Trust, which fiduciary clients, but not always for property that is held by Hawaiian provides a variety of services. Services that Hawaiian Trust in a fiduciary capacity. Hawaiian Trust's wholly owned subsidiary, Building Services Inc. ("BSI"), provides certain property man- Trust provides to individuals include: agement services for four buildings, three of which are owned by (1) acting as trustee for testamentary and irrevoca- Applicant. Two of the three buildings are used for bank operations. ble trusts; The third building was acquired as a result of a default on a loan. The fourth building is owned by one of the clients of Hawaiian Trust, but is (2) acting as trustee for living trusts; not held by Hawaiian Trust in a fiduciary capacity. The Board has (3) investment management and advice; previously determined that property management services of the type (4) estate settlement services in probate; and performed by Applicant and BSI are not permissible nonbanking activities, except with respect to properties held in a fiduciary (5) guardianship services. capacity, properties owned by a bank holding company or its subsid- Hawaiian Trust also provides services to corporations iaries that are used to conduct its own and bank related operations, and other organizations, including: and properties acquired as a result of a default on a loan. See 58 FEDERAL RESERVE BULLETIN 652 (1972); 12 C.F.R. § 225.126(g). (1) employee benefit services; Applicant has committed that Hawaiian Trust will terminate physical (2) acting as a corporate trustee; real estate management services for nonfiduciary clients within one year of consummation, and that BSI will cease providing services to (3) acting as stock transfer agent; and any other building not owned by Applicant within one year of (4) corporate agency services. consummation. Given these commitments, the Board finds that the property management activities of Applicant and BSI fall within the limited types of property management previously authorized by the 1. As of June 30, 1984. Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 169 the trust departments of banks.3 Commenters also already provide tax preparation services to non-trust noted that federal savings and loan associations are customers. The service corporations of federal savings permitted to prepare tax returns for individuals and and loan associations also are empowered to provide non-profit organizations through their service corpora- such services. The assertions by some commenters tions.4 Moreover, some commenters noted that the that potential adverse effects would be associated with Office of the Comptroller of the Currency has found the performance of this activity by banking organizathat national banks may perform tax preparation ser- tions were quite generalized, and the Board is unable vices. See 12 C.F.R. § 7.7430.5 to attach significant weight to these comments. Ac- Very few commenters asserted that tax preparation cordingly, based upon its consideration of the entire services are not closely related to banking. One com- record, the Board finds that tax preparation services menter stated that banks' credibility could be weak- are so closely related to banking as to be a proper ened by their entry into this area. Another commenter, incident thereto. a certified public accountant, asserted that potential Hawaiian Trust provides real estate consulting serconflicts of interest would be created. Two other vices on a nonfiduciary basis that include appraisals, certified public accountants asserted that bank holding cost-flow projections and cost-benefit analyses that companies and their bank subsidiaries are not qualified result in recommendations concerning the acquisition to perform tax preparation services. H&R Block took and/or disposition of real property. These services are the position, without providing further information, not provided to real estate developers. Accordingly, that tax preparation services for individuals should not such services are permissible as portfolio investment be added to the list of permissible nonbanking activi- advice under section 225.25(b)(4)(iii) of the Board's ties because information deemed confidential under Regulation Y, 12 C.F.R. § 225.25(b)(4)(iii), which authe Internal Revenue Code could be disclosed. thorizes investment advice concerning real property A federal court has established guidelines to deter- provided that the property is not used in the business mine whether a particular activity meets the "closely of the party receiving the advice. related to banking" test.6 Under these guidelines, an Applicant's subsidiary bank, Bank of Hawaii, is the activity may be found to be closely related to banking largest commercial bank in Hawaii. It controls total if it is demonstrated that banks generally have in fact deposits of $2.8 billion, which represents 42.4 percent provided the proposed service; that banks generally of the deposits in commercial banks in the state.7 provide services that are operationally or functionally Hawaiian Trust has $2.5 billion in trust assets,8 and is so similar to the proposed services as to equip them the second largest provider of full trust asset manageparticularly well to provide the proposed service; or ment services to the public, with 37 percent of total that banks generally provide services that are so trust assets. Applicant does not provide trust services integrally related to the proposed service as to require and Hawaiian Trust does not engage in commercial their provision in a specialized form. The Board has banking. Accordingly, the proposal would have no previously found these guidelines useful in determin- significant adverse effects upon existing competition. ing whether there is a reasonable basis for determining The proposal may have an adverse effect upon that a proposed nonbanking activity is closely related potential competition, however, depending on the to banking. appropriate definition of the product market and the Tax preparation services for individuals meets the geographic market. Applicant argues that the relevant National Courier guidelines for determining whether product market should be defined to include all intean activity is closely related to banking. Banks in grated trust services, including the assets of three large general have provided such services through their private trusts. Alternatively, Applicant contends that trust departments, and this experience makes banks the relevant market is the disaggregation of the various well equipped to provide these services to non-trust services provided by Hawaiian Trust.9 customers. Moreover, national banks in particular The Board finds Applicant's assertion that the assets of three large private trusts located in Hawaii 3. E.g., Wells Fargo Bank, N.A., Security Pacific Corporation, Citizens Bancorporation, Bank of Boston, Association of Bank Holding Companies, Bank of Hawaii, Union Bank, Sun Banks, Inc., Valley 7. As of September 30, 1984. National Corporation, Fleet Financial Group, and First Chicago 8. As of December 31, 1983. Corporation. 9. The disaggregated product markets would include: acting as 4. E.g., Wells Fargo, the New York Clearinghouse, the American trustee for testamentary and irrevocable trusts, acting as trustee for Bankers Association, the American Financial Services Association, living trusts, investment management and advice, estate settlement and Barclays American Corporation. and guardianship services, employee benefit services, acting as corpo- 5. E.g., Bank of America, the Association of Bank Holding Compa- rate trustee, acting as stock transfer agent, corporate agency services, nies, and First Tennessee National Corporation. property management and clerical services related to property man- 6. See National Courier Association v. Board of Governors, 516 agement, tax preparation, real estate appraisal and consulting ser- F.2d 1229 (D.C. Cir. 1975). vices, escrow and notary services, and note collection services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 Federal Reserve Bulletin • March 1985 should be included in the product market to be unper- Hawaii. It does not appear, however, that Applicant suasive. It is true, as Applicant notes, that Hawaiian should be regarded as one of only a few potential Trust administers significant trust assets held in irrev- entrants into the market for these trust products in ocable trusts, and that such assets are therefore similar Hawaii. Such a conclusion would require a finding that to the irrevocable trust assets managed by the three Applicant, on the basis of its geographic presence in private trusts. These private trusts, however, do not the market, is more likely to enter this complex market offer their services to the public. Thus, although these than the large number of mainland trust departments trusts control substantial assets, they do not represent with extensive experience and resources in the trust an alternative source of trust services to which the area. On this basis, the Board concludes that consumpublic can turn. In contrast, the total trust assets mation of this proposal would not have significant managed by Hawaiian Trust, including the irrevocable adverse effects on potential competition or result in an trust assets it manages, do provide a reasonable ap- undue concentration of resources in the market for proximation of Hawaiian Trust's capacity for provid- testamentary trust services and estate settlement. ing trust services to the public. With regard to public benefits, Hawaiian Trust is With regard to Applicant's assertion that the disag- operating profitably but its earnings and asset size gregated services provided by Hawaiian Trust more have not increased appreciably over the last several accurately represent the relevant product market, the years. A significant factor in Hawaiian Trust's minimal Supreme Court has stated that "[t]he outer boundaries growth appears to be that its capital base is not of of a product market are determined by the reasonable sufficient size to ensure customer confidence with interchangeability of use or the cross-elasticity of regard to such services as bond trusteeships and demand between the product itself and substitutes for pension and profit-sharing trust services. Applicant it."10 will provide Hawaiian Trust with additional capital The Board finds that competition for trust business and access to Applicant's computer network and by non-trust companies has increased substantially in branch network, which should allow Hawaiian Trust recent years. Banks, securities brokerage houses, in- to be a more effective competitor. On balance, the dependent investment advisers, life insurance compa- Board finds that these public benefits outweigh any nies, and real estate management companies offer slight anticompetitive effects that may be associated many of the same products as traditional trust compa- with this proposal. nies, or offer products that are functionally inter- Based upon the foregoing and all the facts of record, changeable. Consequently, it appears that Applicant's the Board has determined that the balance of public assertion that the relevant product market should be interest factors it is required to consider under section viewed on a disaggregated basis is correct. 4(c)(8) is favorable. Accordingly, the application is When the trust products offered by Hawaiian Trust hereby approved. This determination is subject to the are viewed on such a disaggregated basis, it is appar- conditions set forth in sections 225.4(d) and ent that there are a substantially greater number of 225.23(b)(3) of the Board's Regulation Y, 12 C.F.R. competitors to be considered, local, regional and na- §§ 225.4(d) and 225.23(b)(3). The approval is also tional. Non-local product suppliers exist, for example, subject to the Board's authority to require modificafor most of the corporate trust services provided by tion or termination of the activities of the holding Hawaiian Trust, as well as investment management company or any of its subsidiaries as the Board finds services provided to individual customers with sub- necessary to assure compliance with the provisions stantial portfolios. Further, many regional and nation- and purposes of the Act and the Board's regulations al firms offer investment management services from and orders issued thereunder, or to prevent evasion local offices in Hawaii. Hawaiian Trust holds only a thereof. small market share of these non-local products and This transaction shall not be consummated later numerous potential entrants exist. For these non-local than three months after the effective date of this product markets, consummation of this proposal Order, unless such period is extended for good cause would therefore not be likely to result in adverse by the Board, or by the Federal Reserve Bank of San effects with regard to potential competition or undue Francisco, pursuant to delegated authority. concentration of resources. By order of the Board of Governors, effective Hawaiian Trust's testamentary trust and estate set- January 24, 1985. tlement business is conceded by Applicant to be part of a local geographic market consisting of the state of Voting for this action: Chairman Volcker and Governors Martin, Wallich, Partee, Rice, Gramley, and Seger. JAMES MCAFEE 10. Brown Shoe Co., Inc. v. United States, 370 U.S. 294 (1962). [SEAL] Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 171 First Wisconsin Corporation Applicant claims it is authorized to operate a general Milwaukee, Wisconsin insurance agency engaged in the sale of all types of personal and commercial insurance under exemption Order Approving Application to Engage De Novo in G, which authorizes those bank holding companies General Insurance Agency Activities engaged with Board approval in insurance agency activities prior to 1971 to engage in insurance agency First Wisconsin Corporation, Milwaukee, Wisconsin, activities. Unless Applicant's proposal qualifies under a bank holding company within the meaning of the this exemption, the operation of a general insurance Bank Holding Company Act of 1956, as amended agency as proposed by Applicant is not a permissible (12 U.S.C. § 1841 et seq.) (the "BHC Act"), has activity under section 4(c)(8) of the BHC Act.3 applied under section 4(c)(8) of the Act (12 U.S.C. Applicant has been engaged in the sale of insurance § 1843(c)(8) and section 225.23(a)(1) of the Board's related to extensions of credit by its subsidiary banks Regulation Y (12 C.F.R. 225.23(a)(1)) for approval to since 1939. In 1959 Applicant received approval from engage de novo, through its subsidiary, First Wiscon- the Board, under the provisions of the Bank Holding sin Insurance Services, Inc., in general insurance Company Act of 1956, to retain an insurance agency agency activities in the states of Wisconsin, Michigan, subsidiary, First Wisconsin Company, which engaged Illinois, Indiana, Iowa, and Minnesota. in the sale of credit life insurance to customers of Notice of the application, affording interested per- Applicant.4 Applicant has been engaged in the sale of sons an opportunity to submit comments, was duly credit life insurance through this and successor insurpublished (49 Federal Register 40,209 (1984)). The ance agency subsidiaries on a continuous basis since time for filing comments has expired and the Board receiving Board approval in 1959. Applicant is one of has considered this application and the comments 16 active companies with grandfather rights under received from the Independent Insurance Agents of exemption G. America, Inc., National Association of Casualty and Applicant now seeks approval to expand its insur- Surety Agents, National Association of Surety Bond ance agency activities through the operation in six Producers, National Association of Professional Insur- states of a general insurance agency engaged in the ance Agents and National Association of Life Under- sale of all types of personal and commercial insurance writers (hereinafter "protestants"), in light of the to the general public as well as to Applicant's custompublic interest factors set forth in section 4(c)(8) of the ers. Applicant did not sell insurance other than credit BHC Act.1 life in 1971. In interpreting exemption G of section Applicant, with consolidated assets of $5.0 billion,2 4(c)(8), the Board must decide whether Applicant is controls 19 subsidiary banks and is the largest com- authorized to engage in general insurance agency mercial banking organization in Wisconsin. Applicant activities and thus to sell various types of insurance it proposes to expand the activities of its insurance was not selling in 1971.5 agency subsidiary, First Wisconsin Insurance Ser- The protestants argue that exemption G should be vices, Inc., to include the sale of all types of personal read as a limited exemption to the general prohibition and commercial insurance, including, but not limited contained in section 4(c)(8) of the BHC Act against the to, property and casualty insurance, health insurance, and life insurance. Applicant will also expand by 3. Applicant does not qualify under the other relevant exemptions, offering these services to the general public as well as including exemption C, which allow general insurance agency activito customers of Applicant's lending subsidiaries. ties by bank holding companies in towns with a population not exceeding 5,000 and exemption F which permits general insurance Title VI of the Garn-St Germain Depository Instituagency activities (except the sale of life insurance) by small bank tions Act of 1982 ("the Garn Act") amended section holding companies with consolidated assets of less than $50 million. 4(c)(8) of the BHC Act to provide that insurance 4. 45 FEDERAL RESERVE BULLETIN 1136 (1959). 5. The Board has previously interpreted exemption G to permit agency, brokerage, and underwriting activities are not bank holding companies qualifying under exemption G to engage in "closely related to banking" and thus are not permis- the sale of insurance "without restriction on location" and thus sible activities for bank holding companies, unless the without regard to where such companies may have engaged in the sale of insurance prior to 1971. Norwest Corporation, 70 FEDERAL REactivities are included within one of seven specific SERVE BULLETIN 235 (1984). In a subsequent decision, the Board exemptions (A through G) contained in section 4(c)(8). interpreted exemption G to permit those bank holding companies approved by the Board to engage in general insurance agency activities prior to 1971 to continue to engage in such general insurance agency activities without regard to whether in 1971 the bank holding 1. The Board did not consider the filing of the Insurance/Banking company sold the precise types of insurance now being offered. Council of America which was received substantially after the close of Norwest Corporation, 70 FEDERAL RESERVE BULLETIN 657 (1984); the comment period and which stated that it did not "comment upon First Bank System, Inc., 70 FEDERAL RESERVE BULLETIN 779 (1984). the specific facts of the First Wisconsin proposal," but was filed in The Board, however, reserved the issue presented by this application response to the comments of protestants. of whether a bank holding company that was authorized prior to 1971 2. All banking data are as of September 30, 1984, unless otherwise to sell only credit-related insurance is authorized by exemption G to engage in general insurance agency activities. indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Federal Reserve Bulletin • March 1985 conduct of insurance activities by bank holding com- Several additional factors lend support to the conpanies. The protestants urge the Board to interpret clusion that Title VI of the Garn-St Germain Act exemption G restrictively as grandfathering only those authorizes those companies that received Board apprecise insurance agency activities actually conducted proval prior to 1971 to engage in limited credit related by a qualifying bank holding company prior to 1971. In insurance activities to expand those activities to insupport of this position, the protestants cite the legisla- clude general insurance agency activities. If Applitive history of exemption G.6 They argue that expan- cant, which engaged only in the sale of credit life sion of insurance activities from limited sale of credit insurance prior to 1971, is limited under exemption G life to operation of a general insurance agency is to the sale of credit life insurance, it would be limited beyond the intent of Congress. to activities in which all bank holding companies may The language of exemption G does not limit or engage without restriction under exemption A. Thus, restrict the scope of permissible insurance agency protestants' view of exemption G would render that activities for qualifying bank holding companies to exemption meaningless for Applicant, one of only 16 those insurance agency activities approved by the companies it was intended to cover.8 In addition, such Board prior to 1971. The language of exemption G a limitation as urged by protestants would restrict all permits a bank holding company to engage in insur- exemption G companies to the sale of the same type of ance activities provided the company "was engaged, insurance that would otherwise be available under directly or indirectly, in insurance agency activities as exemption D, which grandfathers all bank holding a consequence of approval by the Board prior to company insurance agency activities engaged in prior January 1, 1971." There is no requirement in the to May 1982. By definition any pre-1971 activity statute that a qualifying company must engage only in would qualify under exemption D and exemption G "such" insurance agency activities or "those" insur- would be superfluous for purposes of product line ance agency activities as it conducted with Board expansion. approval prior to 1971. The Board also notes that the impact of allowing Since a company qualifies for rights under exemp- expansion of insurance agency activities for exemption G only by means of Board approval prior to 1971 tion G companies is limited because only 16 companies of its insurance activities, the Board believes that qualify. Congress did not indicate in either the lan- Congress intended in exemption G to limit grandfather guage of the statute or the legislative history that it rights in general to the type of insurance agency intended certain of the 16 companies to exercise activities actually permitted to bank holding compa- broader powers than others. nies prior to 1971. It is clear from the Board's pre-1971 Congress based exemption G on a requirement of decisions that general insurance agency activities, prior Board approval, but that approval under the involving the sale of any type of personal and commer- BHC Act from 1956 through 1971 focused on the cial insurance, were permitted. See First Bank Stock relationship between an applicant's insurance and Corp., 45 FEDERAL RESERVE BULLETIN 917 (1959); banking business in general rather than upon an analy- Northwest Bancorporation, 45 FEDERAL RESERVE sis of the permissibility of the sale of distinct types of BULLETIN 963 (1959). On this basis, the type of insurance. Certain of the Board's orders do not recite insurance agency activities for which Applicant seeks in detail the precise types of insurance to be sold. Only approval are permissible under exemption G.7 when the statutory standard governing the nonbanking activities of bank holding companies was changed with the passage of the 1970 Amendments to the BHC Act 6. Protestants cite specifically a sentence in the Conference Com- did the Board shift its focus to an analysis of each type mittee Report: of insurance proposed to be sold by the bank holding "The House receded with an amendment to grandfather the company. insurance agency activities of a bank holding company Based upon the statutory standard in effect prior to . . . which prior to January 1, 1971, was engaged, directly or indirectly, in insurance agency activities as a consequence of 1971 and the Board's orders prior to that date, the approval by the Board prior to January 1, 1971" (emphasis Board does not believe Congress intended to limit added). exemption G companies to the sale of the precise types H. R. Reg. No. 899, 97th Cong., 2d Sess. 72-73 (1982). Protestants of insurance approved by the Board prior to 1971. argue Congress intended to grandfather only "the insurance agency Accordingly, the Board finds that exemption G authoactivities" engaged in prior to 1971. Exemption G was introduced and rizes the sale of any type of insurance by any qualifyadopted in the course of deliberations by the House/Senate Conference Committee and, consequently, its legislative history is extremely limited. ing bank holding company regardless of the scope of 7. Such a reading of exemption G would appear to preclude general its insurance agency activities prior to 1971. Applicant underwriting activities since the Board did not approve such activities prior to 1971, and Congress in speaking of pre-1971 Board approvals in exemption G speaks only of approval to engage in agency activities. However, the Board need not reach this question since Applicant has 8. Other companies may also be so limited. See First Oklahoma not applied to underwrite insurance. Bancorporation, 51 FEDERAL RESERVE BULLETIN 676 (1965). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 173 is a qualifying company, and it may, therefore, engage Regulation Y, 12 C.F.R. § 225.23(a)(1), to acquire in general insurance agency activities under exemp- Irving Trust California, N.A., Los Angeles, Califortion G. nia; Irving Trust Illinois, N.A., Chicago, Illinois; There is no evidence in the record indicating that Irving Trust Minnesota, N.A., Minneapolis, Minnesoconsummation of Applicant's proposal would result in ta; Irving Trust New Hampshire, N.A., Nashua, New any undue concentration of resources, adverse effects Hampshire; Irving Trust Ohio, N.A., Cincinnati, on competition, conflicts of interests, unsound bank- Ohio; and Irving Trust Vermont, N.A., Burlington, ing practices, or any other adverse effects. Applicant Vermont (collectively referred to as "Banks"). Each will provide an additional source for insurance that is of the institutions is a national bank, for which prelimiparticularly convenient for its customers. It will en- nary charter approval has been granted by the Compgage in the sale of new types of insurance de novo, and troller of the Currency. Banks propose to accept time it has indicated that it will act affirmatively to ensure and savings deposits and money market deposit accompliance with all laws and regulations prohibiting counts, and to make consumer and commercial loans. tie-ins. Accordingly, the Board has determined that Banks will not accept demand deposits as that term is the balance of the public interest factors the Board is defined in section 225.2(a)(1)(A) of the Board's Regurequired to consider under section 4(c)(8) of the BHC lation Y, 12 C.F.R. § 225.2(a)(1)(A). The proposed Act is favorable. activities have been previously determined by the Based upon the foregoing and other facts of record, Board to be closely related to banking. 12 C.F.R. the application is hereby approved. This determination § 225.25(b)(1); Citicorp, 70 FEDERAL RESERVE BULLEis subject to the conditions set forth in section TIN 231 (1984); U.S. Trust Corporation, 70 FEDERAL 225.23(b) of Regulation Y (12 C.F.R § 225.23(b)) and RESERVE BULLETIN 371 (1984). to the Board's authority to require such modification Notice of these applications, affording opportunity or termination of the activities of a holding company or for interested persons to comment, has been duly any of its subsidiaries as the Board finds necessary to published, 49 Federal Register 18,898 (1984). The time assure compliance with the provisions and purposes of for filing comments has expired and the Board has the BHC Act and the Board's regulations and orders considered the applications and all comments reissued thereunder, or to prevent evasion thereof. ceived, including those of the Superintendent of Banks The proposal shall be consummated not later than for the State of Ohio, in light of the factors set forth in three months after the effective date of this Order, section 4(c)(8) of the Act. unless such period is extended for good cause by the Applicant, with total consolidated assets of $19.7 Board or by the Federal Reserve Bank of Chicago, billion, is the 17th largest commercial banking organipursuant to delegated authority. zation in the United States, and the eighth largest in By order of the Board of Governors, effective New York State.1 Applicant has 14 subsidiary banks, January 7, 1985. and also operates three nonbanking subsidiaries, including an investment company, a loan production and Voting for this action: Vice Chairman Martin and Gover- servicing company, and a credit-related insurance nors Partee, Rice, Gramley, and Seger. Absent and not underwriter. voting: Chairman Volcker and Governor Wallich. Applicant asserts that because Banks will not accept demand deposits as that term is defined in the Board's JAMES MCAFEE Regulation Y, they will not be "banks" as defined in [SEAL] Associate Secretary of the Board the BHC Act,2 and, accordingly, that Board approval of the applications is not barred by the interstate banking limitations of the Douglas Amendment to the BHC Act. Irving Bank Corporation New York, New York In its U.S. Trust Order, the Board stated that it was constrained by the technical definition of "bank" in the Act to conclude that a bank holding company Order Conditionally Approving the Acquisition of Institutions Engaged in Deposit Taking and Commercial Lending 1. As of September 30, 1984. Irving Bank Corporation, New York, New York, a 2. The BHC Act defines the term "bank" to include any institution chartered under the laws of the United States or any state that accepts bank holding company within the meaning of the Bank deposits that the depositor has a legal right to withdraw on demand Holding Company Act ("Act" or "BHC Act"), and that engages in the business of making commercial loans. 12U.S.C. § 1841 et seq., has applied for approval 12 U.S.C. § 1841(c). An institution that is chartered as a bank, but that does not perform one of the two essential functions required for under section 4(c)(8) of the Act, 12 U.S.C. "bank" status under the BHC Act's bank definition has been referred § 1843(c)(8), and section 225.23(a)(1) of the Board's to as a "nonbank bank". Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • March 1985 could acquire, on an interstate basis, a national bank Applicant and a number of other bank holding that would accept demand deposits but not make companies have made requests pursuant to the third commercial loans. So too, in this instance, the Board condition noted above for Board approval to engage in must conclude that a national bank that would engage certain transactions with affiliates, including the proviin consumer and commercial lending but would not sion of certain internal administrative support services accept demand deposits as defined in Regulation Y, to their nonbank bank subsidiaries, and to establish would not be a "bank" as that term is defined in the certain officer and director interlocks with such sub- BHC Act and thus may be acquired by a bank holding sidiaries. The Board on January 11, 1985, requested company located in another state.3 public comment on whether it should grant these However, as in the U.S. Trust case, the Board requests. 50 Federal Register 2057 (1985). Applicant believes it appropriate to take action by conditioning will not provide such services to its Banks unless those its approval of these proposals to ensure that Banks services are authorized following the public comment are not used by Applicant as a vehicle for evasion of period. Applicant has also indicated that it will comply the provisions of the Act regarding interstate banking. with the Board's decision regarding officer and direc- Accordingly, the Board has determined to make its tor interlocks between nonbank banks and their affiliapproval subject to the following conditions: ates. 1. Applicant will not operate the commercial lending Pending the Board's decision, Applicant has indicatactivities of its nonbank banks in tandem with any ed that, as suggested in the Board's request for public other subsidiary or other financial institution;4 comment, a majority of the members of each Bank's 2. Applicant will not link in any way the demand board of directors will consist of individuals who are deposit and commercial lending services that define not officers, directors or employees of any affiliate and a bank under the Act; and that no officer of any Bank will simultaneously serve 3. The nonbank bank will not engage in any transac- as an officer, director, or employee of any affiliate that tions with affiliates, other than the payment of accepts demand deposits.6 dividends to Applicant or the infusion of capital by Applicant into the nonbank bank, without the Protestant Board's approval. These conditions preclude the type of linked or inte- The Superintendent of Banks for the State of Ohio has grated operation that would otherwise render these commented in opposition to proposed nonbank banks entities "banks" for purposes of the Act. Applicant in Ohio. The Superintendent states that the statute has stated that it will comply with each of these laws of Ohio specifically prohibit foreign banks from conditions.5 conducting banking activities in Ohio, except for lending money and licensed trust activities, and that the operation of nonbank banks by out-of-state bank holding companies violates the intent of Ohio law and the 3. Similarly, in Citicorp, 70 FEDERAL RESERVE BULLETIN 231 Douglas Amendment. The Superintendent further (1984), the Board concluded that the bank definition in the Act would notes that legislation may be introduced in the Ohio not bar Board approval for a bank holding company to acquire an industrial bank in Tennessee that was required by state law to be legislature this year to authorize interstate banking, insured by the F.D.I.C., and which engaged in commercial lending but but that such legislation may include geographic limits did not accept demand deposits or NOW accounts. 4. In U.S. Trust, the nonbank bank, which proposed to accept that may exclude out-of-state bank holding companies, demand deposits, sought to avoid "bank" status under the Act by not such as Applicant, from acquiring banks in Ohio. making commercial loans. Accordingly, the first condition in the U.S. The Board considered similar arguments by the Trust decision referenced the demand deposit taking activities of the nonbank bank proposed in that case. In this case, Banks propose to Ohio Superintendent of Banks when the Board apengage in the business of making commercial loans. They seek to proved the application of Citizens Fidelity Corporaavoid "bank" status under the Act by not accepting demand deposits. Accordingly, the Board has modified the first U.S. Trust condition to tion, Louisville, Kentucky, to acquire a nationally reflect the different nature of the proposed nonbank banks' activities. chartered nonbank bank in Ohio.7 The Board deter- 5. Applicant has no offices in Vermont or New Hampshire. Applicant has no demand deposit taking offices in Minnesota or Ohio. Applicant has loan production offices in California, Minnesota, Illinois, and Ohio. It proposes to terminate operation of these loan production offices concurrently with the commencement of operations 6. Applicant has proposed that its advertising may refer to the by the respective nonbank banks. Applicant operates Edge Act activities of and market areas served by its various subsidiaries, subsidiaries of its lead bank, Irving Trust Company, New York, New including Banks, and that advertising by Banks may refer to Applicant York, in Illinois and California, and these subsidiaries are authorized and its other subsidiaries. The Board has determined that such to accept certain demand deposits. advertising is permissible provided that in no event shall any advertis- Applicant has stated that Banks will not be located immediately ing suggest that products or services offered by Banks and Applicant's proximate to an office of any of these affiliates. The above conditions subsidiary banks are offered in tandem or as a package. would prohibit Banks from operating in tandem by referring custom- 7. Citizens Fidelity Corporation, 69 FEDERAL RESERVE BULLETIN ers to other affiliates. 556 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 175 mined that the Superintendent's arguments did not mittees announced that they intended to address the provide a basis for denial of that application based on nonbank bank issue in this session of Congress, and the Board's finding that the nonbank bank in that case that any legislation that was enacted would provide would not be a "bank" for purposes of the Douglas that nonbank banks acquired after July 1, 1983, would Amendment and that its acquisition by an out-of-state be required to be divested. Accordingly, in the event bank holding company was not prohibited by Ohio legislation implementing this position is enacted, Aplaw. The Board similarly is unable to conclude that the plicant would be required to divest Banks and could Superintendent's arguments provide a basis for denial suffer financial loss as a result. of Applicant's proposal to acquire a nonbank bank in Based upon the foregoing and all the facts of record, Ohio. the Board has determined that the balance of public The Superintendent also argues that the balance of interest factors it is required to consider under section public interest factors that the Board is required to 4(c)(8) is favorable. Accordingly, the applications are weigh in considering applications under section 4(c)(8) hereby approved. If these proposals are consummatof the Act is unfavorable because it will result in a ed, they shall be subject to the conditions set forth in tendency toward undue concentration of resources this Order with respect to avoiding the operation of an and unfair competition. Due to the de novo nature of integrated institution and the conditions set forth in the these applications, however, the Board finds no evi- Board's Regulation Y, including those in sections dence that consummation of these acquisitions, sub- 225.4(d) and 225.23(b). ject to the limitations and conditions described above, In addition, Banks may not engage directly or would result in any undue concentration of resources indirectly in any activity other than those explicitly or unfair competition. The Board also finds that con- approved by the Board in this Order. Any expansion summation of the acquisitions, subject to the limita- of Banks' activities beyond those approved in this tions and conditions described above, would not result Order would require the Board's prior approval as in any conflicts of interest, unsound banking practices, provided in section 4 of the Act and the Board's or other adverse effects. Regulation Y.9 The Board has examined the statute laws of the The Board's approval also is subject to the Board's states of Minnesota, Vermont, New Hampshire, Illi- authority to require modification or termination of the nois, and California, respectively, in addition to the activities of the holding company or any of its subsidlaws of Ohio, and concludes that the statute laws in iaries as the Board finds necessary to assure complithese states currently contain no provision prohibiting ance with the provisions and purposes of the Act and the acquisition of nonbank banks by out-of-state bank the Board's regulations and orders issued thereunder, holding companies. or to prevent evasion thereof. In accordance with the provisions of section 225.23(b)( 1 )(iii) of Regulation Y, Need for Congressional Action the Board's approval would be required for additional acquisitions by Applicant of nonbank banks or for the The Board has previously indicated its reluctance to establishment of offices by any of Banks outside of the approve nonbank bank acquisitions in view of the states where they are now located. potential presented by such acquisitions to alter signif- By order of the Board of Governors, effective icantly the nation's banking structure without Con- January 31, 1985. gressional action on the underlying policy issues.8 For the reasons stated in the Board's previous orders, the Voting for this action: Chairman Volcker and Governors Board continues to believe that Congressional action Martin, Partee, Gramley, Seger and, except for the application to acquire Irving Trust Ohio, N.A., Governor Wallich. to close the nonbank bank loophole is imperative. The Voting against this action: Governor Rice and, with respect fact that the Board is required by the technical aspects to Irving Trust Ohio, N.A., Governor Wallich. of the bank definition in the Act to approve these and similar applications should not be construed as en- JAMES MCAFEE couragement to Applicant to consummate these pro- [SEAL] Associate Secretary of the Board posals or to others to pursue similar acquisitions. In this regard, the Board notes that on October 4, 1984, the Chairmen of the two Congressional banking com- 9. In this regard, the Board notes that because Banks are not considered banks under the BHC Act, the provisions of section 8. See e.g., U.S. Trust, supra; Suburban Bancorporation, 71 225.22(d)(1) of Regulation Y would not be applicable to exempt the FEDERAL RESERVE BULLETIN 51 (1985). acquisitions or activities of Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin • March 1985 Dissenting Statement of Governor Wallich the bank definition, but the full House failed to vote on the bill before the Congress adjourned. I would deny Applicant's application to acquire Irving Several bills are currently pending before the Con- Trust Ohio, N.A., Cincinnati, Ohio. The Superinten- gress that would close the nonbank bank loophole and dent of Banks for the State of Ohio has opposed this require the divestiture of nonbank banks. In view of application on the grounds that it is contrary to the this indication of Congressional intent to reaffirm the policy of Ohio law and the Douglas Amendment. The basic policies of the Act, I believe that the Board Douglas Amendment and section 7 of the Act repre- should exercise its broad powers under the Act to sent Congressional recognition of the authority of the deny these applications and other similar proposals. states to regulate the structure of banking within their Such applications present serious adverse effects that borders. are not outweighed by any compelling public benefits, The State of Ohio is on record as opposing the particularly in the context of the number of similar acquisition by out-of-state organizations of a nonbank applications pending. bank in Ohio as contrary to the policies of that state as Accordingly, I would deny these applications. expressed in its banking statutes. As indicated in my dissent in Citizens Fidelity Corporation, 69 FEDERAL January 31, 1985 RESERVE BULLETIN 556 (1983), under these circumstances and in view of the inconsistency of Applicant's Orders Issued Under Sections 3 and 4 of Bank proposal with respect to the public policy of the State Holding Company Act of Ohio as articulated by the Superintendent, it is my opinion that this proposal would result in serious SunTrust Banks, Inc. adverse effects that are not outweighed by any public Atlanta, Georgia benefits. Order Approving Formation of Bank Holding January 31, 1985 Company and Acquisition of Nonbanking Companies Dissenting Statement of Governor Rice SunTrust Banks, Inc., Atlanta, Georgia ("SunTrust"), has applied for the Board's approval under section For the reasons stated in my dissents to the Board's 3(a)(1) of the Bank Holding Company Act (12 U.S.C. Orders approving the applications by Citizens Fidelity § 1842(a)(l))(the "Act"), to become a bank holding Corporation and U.S. Trust Corporation to acquire socompany through the acquisition of control of Suncalled nonbank banks, 69 FEDERAL RESERVE BULLE- Banks, Inc., Orlando, Florida ("Sun"), and Trust TIN 556 (1983); 70 FEDERAL RESERVE BULLETIN 371 Company of Georgia, Atlanta, Georgia ("Trust"), (1984), I would deny these applications. Approval of both of which are registered with the Board as bank these applications, in my view, further erodes the holding companies. In connection with this applicapurposes of the Bank Holding Company Act to pretion, SunTrust has also applied to acquire indirectly vent interstate banking without express state authori- Sun's 30 subsidiary banks in Florida,1 Trust's 21 zation and threatens to seriously undermine the Congressional policy to separate banking and commerce. Following the Board's U.S. Trust decision, numer- 1. Sun controls the following banks in Florida: Sun Bank, N.A., ous bank holding companies have applied to acquire Orlando; Sun Bank/South Florida, N.A., Fort Lauderdale; Sun Bank/ hundreds of nonbank banks throughout the country Palm Beach County, N.A., Delray Beach; Sun Bank/North Florida, N.A., Jacksonville; Sun Bank/Suncoast, N.A., St. Petersburg; Sun and a number of large nonbanking companies have Bank/Southwest, N.A., Cape Coral; Flagship Bank of Fort Myers, indicated their plans to acquire such banks. The North Fort Myers; Sun Bank of Tampa Bay, Tampa; Sun Bank of Board's action today establishes a further precedent Ocala, Ocala; Sun Bank of Gainesville, Gainesville; Sun First National Bank of Polk County, Lake Wales; Flagship State Bank of Polk for the multitude of pending nonbank bank applica- County, Fort Meade; Sun Bank of Volusia County, Daytona Beach; tions. Approval of these applications, in my opinion, Sun Bank of St. Lucie County, Ft. Pierce; Sun Bank of Miami, Miami; would result in far-reaching changes in the banking Flagship National Bank of Miami, Miami; Sun Bank of Pasco County, Zephyrhills; Sun Bank/West Florida, N.A., Pensacola; Sun Bank/ structure of this country, changes which should not Okeechobee, Okeechobee; Sun Bank/Indian River, N.A., Vero occur without Congressional direction. Beach; Sun First National Bank of DeFuniak Springs, DeFuniak Springs; Sun Bank/Highlands County, N.A., Avon Park; Sun Bank During the last term, the Senate passed by an and Trust/Charlotte County, N.A., Port Charlotte; The Hillsboro Sun overwhelming majority a bill that would close the so- Bank, Plant City; Sun Bank/Naples, N.A., Naples; Sun Bank/Sarasocalled nonbank bank loophole by redefining the term ta County, N.A., Sarasota; Sun Bank/Citrus County, N.A., Crystal River; Sun Bank/DeSoto County, N.A., Arcadia; Sun Bank/Tal- "bank" in the Act. The House Banking Committee lahassee, N.A., Tallahassee; and North Florida National Bank, approved a bill last term with a similar redefinition of Tallahassee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments ill subsidiary banks in Georgia,2 and Southern Banc- (12 U.S.C. § 1842(c)) and the considerations specified shares, Inc., Atlanta, Georgia, a wholly owned subsid- in section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). iary of Trust that holds two of Trust's 21 subsidiary Sun is the second largest commercial banking orgabanks.3 nization in Florida. Its 30 subsidiary banks hold total SunTrust has also applied for the Board's approval domestic deposits of $7.3 billion, representing 12.5 under section 4(c)(8) of the Act (12 U.S.C. percent of deposits in commercial banks in the state.4 § 1843(c)(8)) and section 225.23 of the Board's Regula- Trust is the third largest commercial banking organization Y (12 C.F.R. § 225.23), to acquire the following tion in Georgia. Its 21 subsidiary banks hold total nonbanking subsidiaries of Sun and Trust: Sunbank domestic deposits of $3.7 billion, representing 14.3 Service Corporation, Orlando, Florida; Sunbank percent of deposits in commercial banks in the state. Mortgage Company, Orlando, Florida; SBF Agency, Section 3(d) of the Act (12 U.S.C. § 1842(d)), the Inc., Orlando, Florida; Trusco Data Systems of Flori- Douglas Amendment, prohibits the Board from apda, Inc., Gainesville, Florida; and Trust Company proving any application by a bank holding company to Mortgage, Atlanta, Georgia. Sunbank Service Corpo- acquire control of any bank located outside of the ration and Trusco Data Systems of Florida engage in holding company's home state,5 unless such acquisidata processing activities permitted for bank holding tion is "specifically authorized by the statute laws of companies under section 225.25(b)(7) of Regulation Y. the State in which [t]he bank is located, by language to Sunbank Mortgage Company engages in making and that effect and not merely by implication."6 SunTrust servicing loans, including residential home mortgage seeks to effect the proposed acquisitions under recentloans, as permitted under section 225.25(b)(1) of Regu- ly enacted legislation in Georgia and Florida that lation Y. Trust Company Mortgage engages in making authorizes interstate banking on a regional reciprocal and servicing mortgage loans, acting as an investment basis among bank holding companies located in certain or financial advisor and arranging equity financing, as states in the Southern portion of the United States, permitted under sections 225.25(b)(1), (4) and (14) of including the States of Georgia and Florida. Regulation Y. SBF Agency, Inc., engages in credit Based upon a review of the relevant Georgia and related life, health and accident insurance activities, as Florida statutes, the Board concludes that Board appermitted under section 225.25(b)(8) of Regulation Y. proval of SunTrust's application to acquire banking Notice of the applications, affording opportunity for organizations in Georgia and Florida is not barred by interested persons to submit comments, has been the Douglas Amendment to the Bank Holding Compagiven in accordance with sections 3 and 4 of the Act ny Act.7 The statute laws of Georgia8 authorize the (49 Federal Register 47,333 (1984)). The time for filing acquisition of a banking institution in Georgia by a comments has expired, and the Board has considered bank holding company that controls a bank located in the applications and all comments received in light of another "Southern Region state,"9 provided the other the factors set forth in section 3(c) of the Act Southern Region state authorizes on a reciprocal basis the acquisition of bank in that state by a Georgia bank holding company. Florida is a "Southern Region state" that has passed a reciprocal statute authorizing 2. Trust directly controls the following banks in Georgia: Trust Company Bank, Atlanta; The First National Bank of Athens, Athens- Madison; Trust Company Bank of Augusta, N.A., Augusta; Trust Company Bank of Carroll County, Bowdon-Carrollton; Trust Company Bank of Clayton County, Jonesboro; Trust Company Bank of Cobb 4. Banking data are as of December 31, 1983. County, N.A., Smyrna; The National Bank and Trust Company of 5. A bank holding company's home state is that state in which the Columbus, Ga., Columbus; Trust Company Bank of Douglas County, operations of the bank holding company's banking subsidiaries are Douglasville; Trust Company Bank of Gwinnett County, Lawrence- principally conducted on July 1, 1966, or the date on which the ville; Trust Company Bank of Henry County, N.A., McDonough; company became a bank holding company, whichever is later. Trust Company Bank of Middle Georgia, N.A., Macon-Warner Rob- 6. The Board has previously indicated that the formation of a bank ins; Trust Company Bank of Rockdale, Conyers; The First National holding company through acquisition of banks located in more than Bank of Rome, Rome; Trust Company of Georgia Bank of Savannah, one state is subject to the interstate banking provisions of the Douglas N.A., Savannah; Trust Company Bank of South Georgia, N.A., Amendment to the Bank Holding Company Act. E.g., Credit and Albany-Thomasville; Trust Company Bank of Troup County, La- Commerce American Holdings, N.V., 65 FEDERAL RESERVE BULLE- Grange; The First National Bank of Wayne County, Jesup; The TIN 254 (1979). Rockmart Bank, Rockmart; and First National Bank of Thomson, 7. SunTrust would become a bank holding company with a home Thomson. Trust indirectly controls the following banks in Georgia state in Florida for purposes of the Douglas Amendment upon through its control of Southern Bancshares, Inc., Atlanta, Georgia: consummation of the proposal, because the total deposits of Sun- The First National Bank of Brunswick, Brunswick-Waycross; and Trust's subsidiary banks would be largest in that state. Trust Company Bank of Coffee County, Douglas. 8. Ga. Code Ann. §§ 7-1-620 to 7-1-625 (Supp. 1984). 3. SunTrust has also applied for Board approval under section 3(a) 9. The "Southern Region" from which Georgia will permit acquisiof the Act for the merger of TCG Sub, Inc., a shell corporation formed tions of its banking institutions is comprised of the following states: by SunTrust for the purpose of effecting its acquisition of Trust. TCG Alabama, Florida, Louisiana, Mississippi, North Carolina, South Sub would be the survivor in this merger and would assume Trust's Carolina, Tennessee, and the Commonwealth's of Kentucky and corporate name. Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin • March 1985 acquisitions of Florida banks by Georgia banking tioners' constitutional challenges to the Massachusetts organizations.10 and Connecticut statutes and affirmed three of the Citicorp, New York, New York, and its subsidiary, Board's Orders under those statutes. The petitioners Citicorp Savings of Florida, Miami, Florida, have subsequently filed petitions for certiorari with the protested these applications, claiming that provisions United States Supreme Court, requesting the Court's in the Georgia and Florida interstate banking statutes review of the Second Circuit's decision. The Board's that limit the acquisition of banking organizations in Orders in the New England cases were then stayed, by those states to bank holding companies located in the Second Circuit or by stipulation, pending considercertain Southern states are not consistent with various ation of the petition to the Supreme Court and final provisions of the United States Constitution. The action by the Court. On January 7, 1985, the Supreme Board has considered the questions raised by the Court granted the petition for certiorari in the Second protestants regarding the constitutionality of regional Circuit case. reciprocal banking statutes, such as that at issue in this In view of the fact that the Southern regional case, in connection with the regional reciprocal inter- interstate banking statutes raise the same constitutionstate banking statutes enacted by the New England al issues as the New England statutes, the Board has states of Massachusetts, Connecticut, and Rhode Is- considered whether to stay the effectiveness of its land.11 action on the SunTrust application pending final judi- In those cases, the Board determined that, while the cial action with respect to the New England cases. issue is not free from doubt, there was no clear and However, the protestants in this case have not reunequivocal basis for a determination that the New quested a stay, and the Board voted to approve England regional interstate banking statutes were un- SunTrust's applications prior to the announcement of constitutional. The Board believes that its reasoning the Supreme Court's decision granting certiorari in with respect to the constitutionality of the New En- Northeast Bancorp. Accordingly, the Board has detergland statutes applies equally to the challenged provi- mined that it will not stay, on its own motion, the sions of the Georgia and Florida statutes, which are effectiveness of its decision in this case. similar to the New England statutes in language and The Board has carefully considered the effects of the effect.12 Accordingly, and for the reasons set out in its proposal upon competition in the relevant markets. earlier decisions, the Board will not deny this applica- The proposal involves the combination of two sizeable tion on the grounds of unconstitutionality urged by the commercial banking organizations that are among the protestants. largest banking organizations in their respective On August 1, 1984, the United States Court of states. However, because the banking subsidiaries of Appeals for the Second Circuit issued an opinion in Sun and Trust operate in separate banking markets, Northeast Bancorp, Inc. v. Board of Governors of the consummation of the proposal would not eliminate Federal Reserve System,13 in which it rejected peti- significant existing competition in any relevant market. The Board has also examined the effect of the 10. 1984 Fla. Laws 795 § 1, entitled "Regional Reciprocal Banking Act of 1984," Fla. Sess. Law Serv. ch. 84-42. proposed consolidation of Sun and Trust on probable 11. Fleet Financial Group, Inc., 70 FEDERAL RESERVE BULLETIN future competition in the relevant geographic markets 834 (1984); Bank of Boston Corporation, 70 FEDERAL RESERVE in light of the Board's probable future competition BULLETIN 737 (1984); Bank of Boston Corporation, 70 FEDERAL RESERVE BULLETIN 524 (1984); Bank of New England Corporation, 70 guidelines.14 After consideration of these factors in FEDERAL RESERVE BULLETIN 374 (1984); and Hartford National light of the specific facts of this case, the Board has Corporation, 70 FEDERAL RESERVE BULLETIN 353 (1984). 12. The protestants have also alleged that the Georgia and Florida concluded that the consummation of this proposal interstate banking statutes violate state constitutional provisions would not have any significant adverse effects on guaranteeing due process and equal protection (Ga. Const, art. 1, § 1, probable future competition in any relevant market. In !11 and 2, and Fla. Const, art. I, §§ 2 and 9), but have not provided an analysis of their claims. The Board concludes that it would reach a this regard, the Board notes that there are numerous result under the Florida and Georgia constitutional provisions similar other potential entrants from within the three-state to the result reached under the federal constitutional provisions. See interstate banking region of Georgia, Florida, and generally, Home Materials, Inc. v. Auto Owners Ins. Co., 250 Ga. 599, 300 S.E. 2d 139 (1983); Caldwell v. Hospital Auth. of Charlton County, 248 Ga. 887, 287 S.E. 2d (1982); and United Yacht Brokers, Inc. v. Gillespie, 111 So. 2d 668 (Fla. 1979) (state constitutional analysis employs standards similar to federal constitutional standards). 14. See "Proposed Policy Statement of the Board of Governors of 13. 740 F.2d 203 (2d Cir. 1984), cert, granted, 53 U.S.L.W. 3470 the Federal Reserve System for Assessing Competitive Factors Under (U.S. January 7, 1985) (No. 84-363). The Second Circuit affirmed the the Bank Merger Act and the Bank Holding Company Act," 47 Board's rulings in Bank of Boston Corporation, 70 FEDERAL RESERVE Federal Register 9017 (March 3, 1982). The proposed policy statement BULLETIN 524 (1984); Bank of New England Corporation, 70 FEDER- has not been approved by the Board. The Board has applied the AL RESERVE BULLETIN 374 (1984); and Hartford National Corpora- criteria set forth in the proposed policy statement in its analysis of the tion, 70 FEDERAL RESERVE BULLETIN 353 (1984). effects of proposals on probable future competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 179 North Carolina into each of the markets involved in SunTrust's acquisition of companies is subject to all this case.15 the conditions set forth in Regulation Y, including The financial and managerial resources and future sections 225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) prospects of Sun and Trust and their respective sub- and 225.23(b)), and to the Board's authority to require sidiaries are considered satisfactory. SunTrust will such modifications or termination of activities of a acquire these bank holding companies through an holding company or any of its subsidiaries as the exchange of shares, and no debt will be incurred to Board finds necessary to assure compliance with the effect the acquisitions. Upon consummation, Sun- provisions and purposes of the Act and the Board's Trust's primary and total capital ratios will exceed the regulations and orders issued thereunder, or to preminimum levels specified in the Board's guidelines.16 vent evasion thereof. Accordingly, the Board finds that banking factors are By order of the Board of Governors, effective consistent with approval. January 8, 1985. Applicant has stated that the proposed combination of Sun and Trust will permit each to offer improved Voting for this action: Vice Chairman Martin and Goverand expanded services to customers and to the com- nors Partee, Rice, Gramley, and Seger. Absent and not munities they serve. Accordingly, the Board has deter- voting: Chairman Volcker and Governor Wallich. mined that considerations relating to the convenience and needs of the communities to be served are consis- WILLIAM W. WILES tent with approval. [SEAL] Secretary of the Board The Board has also considered SunTrust's applications under section 4(c)(8) of the Act, to acquire five nonbanking subsidiaries of Sun and Trust that engage Orders Issued Under Section 18 of Bank in data mortgage banking, data processing, and insur- Merger Act ance activities. These activities have been determined by the Board to be closely related to banking under Bank of Virginia sections 225.25(b)(1), (7) and (8) of Regulation Y Richmond, Virginia (12 C.F.R. §§ 225.25(b)(1), (7) and (8)). In addition, there is no evidence in the record to indicate that Order Approving the Merger of Banks approval of this proposal would result in undue concentration of resources, decreased or unfair competi- Bank of Virginia, Richmond, Virginia, has applied for tion, conflicts of interest, unsound banking practices, the Board's approval under the Bank Merger Act or other adverse effects on the public interest. Accord- (12 U.S.C. § 1828(c)) to merge with Citizens Trust ingly, the Board has determined that the balance of the Bank, Portsmouth, Virginia ("Bank"), under the charpublic interest factors it must consider under section ter and name of Applicant.1 4(c)(8) of the Act is consistent with approval of the Notice of the application, affording interested perapplication to acquire Company. sons an opportunity to submit comments, has been Based on the foregoing and the facts of record, the given in accordance with the Bank Merger Act and the Board has determined that the applications under Board's Rules of Procedure (12 C.F.R. § 262.3(b)). As sections 3 and 4 of the Act should be and are hereby required by the Bank Merger Act, reports on the approved. The acquisitions shall not be consummated competitive effects of the merger were requested from before the thirtieth calendar day following the effective the United States Attorney General, the Comptroller date of this Order, or later than three months after the of the Currency, and the Federal Deposit Insurance effective date of this Order, unless such period is Corporation. The time for filing comments has exextended for good cause by the Board or by the pired, and the Board has considered the application Federal Reserve Bank of Atlanta, acting pursuant to and all comments received in light of the factors set delegated authority. The determination with respect to forth in the Bank Merger Act (12 U.S.C. § 1828(c)(5)). Applicant, a state-chartered member bank, is the only banking subsidiary of Bank of Virginia Company, 15. North Carolina has in effect regional reciprocal interstate banking legislation that is similar to the Georgia and Florida laws in permitting interstate acquisitions of North Carolina banks by banking organizations located in certain Southern states, including Georgia 1. In November 21, 1984, the Board approved the application of and Florida. N.C. Gen. Stat. § 53-229 (1984). North Carolina is a state Applicant's parent company, Bank of Virginia Company, filed pursuwithin the interstate banking region defined under the Georgia and ant to the Bank Holding Company Act, to acquire up to 40.3 percent Florida statutes. of the voting shares of Bank's parent, Citizens Trust Company. Bank 16. Capital Adequacy Guidelines, 12 C.F.R., Part 225, Appendix of Virginia Company, 71 FEDERAL RESERVE BULLETIN 40 (1985). A; Capital Adequacy Guidelines for Bank Holding Companies, 49 Citizens Trust Company is to be merged into Applicant concurrently Federal Register 30,332 (July 30, 1984). with Applicant's proposed merger with Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • March 1985 Richmond, Virginia ("Company"). Applicant is the The 14 thrift institutions that compete in the market fourth largest commercial banking organization in Vir- hold total deposits of $1.9 billion, representing approxginia, holding deposits of approximately $2.8 billion, imately 41 percent of the total deposits in commercial representing 9.3 percent of the total deposits in com- banks and thrift institutions in the market. Four of the mercial banks in the state.2 Bank is the 13th largest market's six largest depository institutions are thrift commercial banking organization in Virginia, holding institutions. The thrift institutions in the market offer deposits of $123.5 million, representing approximately NOW accounts and are active in consumer lending. 0.5 percent of the total deposits in commercial banks Moreover, four of the market's thrift institutions offer in the state. Upon consummation of this proposal, commercial lending services and commercial transac- Applicant would control approximately 9.8 percent of tion accounts. Based upon this and other evidence of the total deposits in commercial banks in the state, and record, the Board has concluded that the competition would remain Virginia's fourth largest commercial offered by thrift institutions in the Norfolk-Portsmouth banking organization. Accordingly, the Board con- market mitigates the anticompetitive effects of the cludes that the merger of Applicant and Bank would proposed merger and has determined that consummanot have a significant adverse effect on the concentra- tion of the proposal would not have a significant adverse effect on existing competition in the market.7 tion of banking resources in Virginia. Applicant and Bank compete in the Norfolk-Ports- The financial and managerial resources and future mouth banking market,3 where all of Bank's offices are prospects of Applicant, Company, and Bank are satislocated. Applicant is the fourth largest commercial factory and consistent with approval of this applicabank in the Norfolk-Portsmouth banking market, con- tion. Considerations relating to the convenience and trolling 7.5 percent of the deposits in commercial needs of the communities to be served also are consisbanks in the market.4 Bank is the seventh largest tent with approval. Based on these and other facts of commercial bank in the market and controls 4.2 per- record, the Board has determined that consummation cent of the deposits in commercial banks in the mar- of the proposed merger would be in the public interest ket. Upon consummation of the proposed transac- and that the application should be approved. tions, Applicant would become the third largest On the basis of the record, the application is apcommercial bank in the Norfolk-Portsmouth market, proved for the reasons summarized above. The transand would control 11.7 percent of the deposits in action shall not be consummated before the thirtieth commercial banks in the market. calendar day following the effective date of this Order The share of deposits held by the four largest or later than three months after the effective date of commercial banking organizations in the Norfolk- this Order, unless such period is extended for good Portsmouth banking market is 71.2 percent, and the cause by the Board, or by the Federal Reserve Bank of market's Herfindahl-Hirschman Index ("HHI") is Richmond pursuant to delegated authority. 1875. Upon consummation of this proposal, the four- By order of the Board of Governors, effective firm concentration ratio would increase to 75.4 percent January 22, 1985. and the HHI would increase 63 points to 1938.5 While the proposed acquisition would eliminate existing Voting for this action: Chairman Volcker and Governors competition in the Norfolk-Portsmouth market, the Martin, Wallich, Partee, Rice, Gramley, and Seger. Board believes that the anticompetitive effects of the proposed merger are mitigated by the extent to which thrift institutions compete with commercial banks in JAMES MCAFEE the market.6 [SEAL] Associate Secretary of the Board 2. Statewide banking data are as of December 31, 1983. banks. NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225 3. The Norfolk-Portsmouth banking market is defined as the Nor- (1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLETIN 934 (1983); folk-Portsmouth Ranally Metro Area. The analysis of this proposal's Merchants Bancorp, Inc., 69 FEDERAL RESERVE BULLETIN 865 competitive effects in the Norfolk-Portsmouth market is substantially (1983). identical to that set forth in Bank of Virginia Company, supra, 71 7. If 50 percent of the deposits held by thrift institutions were FEDERAL RESERVE BULLETIN 40-41. included in the calculation of market concentration, Applicant's post- 4. Market data are as of June 30, 1984. merger market share would be 8.7 percent, making it the fourth largest 5. Under the Department of Justice's revised Merger Guidelines (49 depository institution in the market. Furthermore, when thrift data are Federal Register 26,823 (1984)), a market in which the post-merger considered, consummation of the proposal would increase the mar- HHI is above 1800 is considered highly concentrated. In such a ket's four-firm concentration ratio to 56 percent and would increase market, where the increase in the HHI is less than 100 but more than the HHI only 35 points, from 1141 to 1176. As the Justice Department 50 points, the Department is likely to challenge the merger unless stated in its revised Merger Guidelines (49 Federal Register 26,823 other factors indicate that the merger will not substantially lessen (1984)), where a post-merger market HHI is between 1000 and 1800 competition. and the merger produces an increase of less than 100 points, the 6. The Board has previously determined that thrift institutions have Department is unlikely to challenge such a merger. In this case, the become, or at least have the potential to become, major competitors of increase would be less than 100 points. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 181 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During January 1985 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 Caribank Corporation, Caribank of Palm Beach County, January 28, 1985 Dania, Florida Boca Raton, Florida FBOP Corporation, First Bank of Oak Park, January 14, 1985 Oak Park, Illinois Oak Park, Illinois First Union Bancorporation, Inc., Union National Bank of Laredo, January 30, 1985 Laredo, Texas Laredo, Texas FSB Holding Co., West Chester Savings Bank, January 14, 1985 Kalona, Iowa West Chester, Iowa By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Alex Brown Financial Group, Meridian National Bank, San Francisco January 4, 1985 Sacramento, California Concord, California Meridian National Bancorp, Concord, California Allied Bankshares, Inc., Bank of Greensboro, Atlanta January 10, 1985 Thomson, Georgia Greensboro, Georgia Athens Bancorp, Inc., The Bank of Athens, Chicago January 10, 1985 Athens, Wisconsin Athens, Wisconsin Bank Corporation of Georgia, Peoples Bank, Atlanta December 31, 1984 Fort Valley, Georgia St. Mary's, Georgia The Banking Group, Ltd., The First National Bank of Castle Kansas City January 11, 1985 Castle Rock, Colorado Rock, Castle Rock, Colorado Beverly Bancorporaton, Inc., M-R Financial Corporation, Chicago January 18, 1985 Chicago, Illinois Matteson, Illinois Bosshard Banco, Ltd., Intercity State Bank, Minneapolis January 18, 1985 Bangor, Wisconsin Schofield, Wisconsin BSJ Bancshares, Inc., Bank of St. Joseph & Trust Co., Dallas January 17, 1985 St. Joseph, Louisiana St. Joseph, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 1985 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date CaSH Holding Company, Inc., Southern Hills Bank, Minneapolis January 25, 1985 Sioux Falls, South Dakota Edgemont, South Dakota Custer County Bank, Custer, South Dakota CBS Bancshares, Inc., Citizens Bank, Atlanta January 18, 1985 Spencer, Tennessee Gainesboro, Tennessee CB&T Bancshares, Inc., Carroll County Financial Atlanta January 7, 1985 Columbus, Georgia Corporation, Temple, Georgia CB&T Bancshares, Inc., West Georgia Financial Atlanta December 31, 1984 Columbus, Georgia Corporation, Tallapoosa, Georgia Charleston Associates, AmeriCorp, Inc., Atlanta December 21, 1984 Savannah, Georgia Savannah, Georgia Charter 17 Bancorp, Inc., Midwest National Corporation, Chicago December 31, 1984 Richmond, Indiana Indianapolis, Indiana Citizens Bancorp, Inc., Citizens National Bank, Dallas December 27, 1984 Crockett, Texas Crockett, Texas Citizens Fidelity Corporation, American Bank and Trust St. Louis January 23, 1985 Louisville, Kentucky Company, Inc., Lexington, Kentucky Colonial Bancorp, Colonial National Bank, Kansas City January 2, 1985 Denver, Colorado Denver, Colorado Columbia Bancorp, Inc., Republic Bancorp of S. C., Inc., Richmond January 23, 1985 Columbia, South Carolina Columbia, South Carolina Columbia Bancshares, Inc., Bank of Columbia, St. Louis January 24, 1985 Columbia, Kentucky Columbia, Kentucky Comerica Incorporated, Comerica Bank-Lansing, N.A., Chicago January 3, 1985 Detroit, Michigan Lansing, Michigan Commerce Bancorp, Inc., National Bank of Commerce, Richmond December 31, 1984 Washington, D.C. Washington, D.C. D. P. Financial Corporation, Delta Pacific Bank, San Francisco December 24, 1984 Walnut Creek, California Pittsburg, California Des Plaines National Bancorp, Des Plaines National Bank, Chicago January 22, 1985 Inc., Des Plaines, Illinois Des Plaines, Illinois Dooly Bancshares, Inc., Bank of Dooly, Atlanta January 21, 1985 Vienna, Georgia Vienna, Georgia Downey Bancorp, Downey National Bank, San Francisco November 1, 1984 Downey, California Downey, California Ennis Bancshares, Inc., Ennis State Bank, Dallas December 28, 1984 Waco, Texas Ennis, Texas Farmers and Merchants State Bank of Hanska, Minneapolis December 27, 1984 Financial Services, Inc., Hanska, Minnesota St. Paul, Minnesota Farmers Capital Bank United Bank & Trust Company, St. Louis January 9, 1985 Corporation, Versailles, Kentucky Frankfort, Kentucky Farmers Deposit Bancorp, Farmers Deposit Bank, St. Louis January 15, 1985 Eminence, Kentucky Eminence, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 183 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date Firstbancorporation of First Bank and Trust Company of Chicago December 26, 1984 Batesville, Indiana, Batesville, Batesville, Indiana Batesville, Indiana First Jersey National Peoples National Bank of North New York January 16, 1985 Corporation, Jersey, Jersey City, New Jersey Denville, New Jersey First Kentucky National The American National Bank & St. Louis January 11, 1985 Corporation, Trust Company, Louisville, Kentucky Bowling Green, Kentucky First Midwest Bancshares, Inc., First Bank and Trust Co. of St. Louis January 4, 1985 Princeton, Kentucky Princeton, Princeton, Kentucky First National Bancorp, Inc., First National Bank of Tempe, San Francisco December 28, 1984 Phoenix, Arizona Tempe, Arizona First National Corporation of The First National Bank of St. Louis January 23, 1985 Wynne, Wynne, Wynne, Arkansas Wynne, Arkansas The First National Holding The First National Bank of Cleveland January 21, 1985 Company of Jackson, Jackson, Jackson, Kentucky Jackson, Kentucky First South Bancorp, Inc., Farmers State Bank, St. Louis January 2, 1985 Scotts Hill, Tennessee Scotts Hill, Tennessee First State Financial First State Bank of Carrollton, Atlanta December 28, 1984 Corporation, Carrollton, Alabama Carrollton, Alabama The Grange National Banc The Grange National Bank of Philadelphia January 4, 1985 Corp., Wyoming County, Laceyville, Pennsylvania Laceyville, Pennsylvania Hartland Bancorp, Inc., Hartland National Bank, Chicago January 21, 1985 Oconomowoc, Wisconsin Hartland, Wisconsin Holyoke Bancorp, Inc., Security National Bank, Kansas City December 14, 1984 Denver, Colorado Holyoke, Colorado Illini Community Bancorp, Inc., Coffeen State Bank, Chicago December 28, 1984 Springfield, Illinois Coffeen, Illinois Illini Community Bancorp, Inc., Sagamon Banc Shares, Inc., Chicago December 28, 1984 Springfield, Illinois Springfield, Illinois First State Bank of Danvers, Danvers, Illinois Jeff Davis Bankshares, Inc., Jeff Davis Bank, Atlanta January 7, 1985 Hazlehurst, Georgia Hazlehurst, Georgia Kenneth Holding Company, State Bank of Kenneth, Minneapolis January 10, 1985 Kenneth, Minnesota Kenneth, Minnesota Kimberly Leasing Corporation, First National Bank of Crosby, Minneapolis January 11, 1985 Augusta, Wisconsin Crosby, Minnesota Kingsland Bancshares, Inc., Kingsland National Bank, Dallas January 11, 1985 Kingsland, Texas Kingsland, Texas LeMars Bancorporation, Inc., Le Mars Savings Bank, Chicago December 28, 1984 Le Mars, Iowa Le Mars, Iowa Lewis Bankshares, Inc., First State Bank, Minneapolis January 10, 1985 Sioux Falls, South Dakota Armour, South Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 1985 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date Lone Star BancGroup, Inc., Lone Star National Bank, Dallas January 14, 1985 Dallas, Texas Dallas, Texas M & F Financial Corporation, Merchants & Farmers Bank, Atlanta January 15, 1985 Donalsonville, Georgia Donalsonville, Georgia MarTex Bancshares, Inc., The First State Bank, Dallas December 28, 1984 Glade water, Texas Gladewater, Texas MC Bancorp, Inc., Bank of Modesto, St. Louis January 22, 1985 Modesto, Illinois Modesto, Illinois Merchants Bancorp, Inc., Number One Bancorp, Inc., Philadelphia January 25, 1985 Allentown, Pennsylvania Scranton, Pennsylvania First State Bank, Scranton, Pennsylvania Merrill Bancorporation, Inc., Farmers State Bank, Chicago December 28, 1984 Merrill, Iowa Merrill, Iowa Mid-Atlantic Bankcorp, Hagerstown Trust Company, Richmond January 23, 1985 Hagerstown, Maryland Hagerstown, Maryland Nixon Financial Corporation, Nixon Bancshares, Inc., Dallas January 10, 1985 Nixon, Texas Nixon, Texas North Bay Bancorp, Novato National Bank, San Francisco January 16, 1985 Novato, California Novato, California 0 & F Cattle Company, First Nebraska Bancs, Inc., Kansas City December 27, 1984 Oshkosh, Nebraska Sidney, Nebraska Old National Bancorp, Inc., The Empire National Bank of Richmond January 3, 1985 Martinsburg, West Virginia Clarksburg, Clarksburg, West Virginia Omnibank Corp., Wyandotte Savings Bank, Chicago January 14, 1985 Wyandotte, Michigan Wyandotte, Michigan Peoples Bancshares of Antigo, The Peoples' Bank, Chicago January 2, 1985 Inc., Antigo, Wisconsin Antigo, Wisconsin The Peoples BancTrust Co., Peoples Bank & Trust Company, Atlanta January 16, 1985 Inc., Selma, Alabama Selma, Alabama Phillips Insurance Agency, Dodgeville State Bank, Minneapolis December 31, 1984 Newport, Minnesota Dodgeville, Wisconsin Premier Bancorp, Inc., Farmers-Merchants National Chicago December 31, 1984 Farmer City, Illinois Bank of Paxton, Paxton, Illinois RBC Holdings (USA) Inc., The Royal Bank and Trust New York January 9, 1985 New York City, New York Company, New York City, New York Red River Bancorp, Inc., The First State Bank, Dallas January 17, 1985 Gainesville, Texas Gainesville, Texas R.O.M. Financial Services, State Bank of Chanhassen, Minneapolis January 8, 1985 Inc., Chanhassen, Minneosta Chanhassen, Minnesota Ruidoso Bank Corporation, Bank of the Rio Grande, N.A., Dallas January 17, 1985 Ruidoso, New Mexico Las Cruces, New Mexico Rushford State Bancorp, Inc., Rushford State Bank (Incor- Minneapolis January 9, 1985 Rushford, Minnesota porated), Rushford, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 185 Section 3—Continued . „ , , . Reserve Effective Applicant Bank(s) B&nk date SafraBancorporation California, SafraBank (California), San Francisco January 11, 1985 Los Angeles, California Los Angeles, California SBC Financial Corporation, State Bank of Chittenango, New York January 4, 1985 Chittenango, New York Chittenango, New York SBT Holding Company, Southwest Bank and Trust Kansas City January 17, 1985 Kansas City, Missouri Company of Omaha, Omaha, Nebraska Security Banc Corporation, The Security National Bank and Cleveland January 25, 1985 Springfield, Ohio Trust Co., Springfield, Ohio Security Bancshares, Inc., Farmers Bank & Trust Company, St. Louis December 27, 1984 Paris, Tennessee Puryear, Tennessee Security Holding, Inc., Mountain Holding, Inc., Kansas City January 9, 1985 Aurora, Colorado Aurora, Colorado Security Bancorporation, Inc., Boulder, Colorado SNB Corp., Second National Bank, Cleveland January 23, 1985 Greenville, Ohio Greenville, Ohio Southwest Virginia Bankshares, The Bank of Marion, Richmond January 22, 1985 Inc., Marion, Virginia Marion, Virginia Star City Bancshares, Inc., Bank of Star City, St. Louis January 4, 1985 Star City, Arkansas Star City, Arkansas Texana Bancshares, Inc., Texana Bank of Waco, N.A., Dallas January 2, 1985 Austin, Texas Waco, Texas Union Bankshares, Ltd., Union Bank & Trust, Kansas City December 24, 1984 Denver, Colorado Denver, Colorado US Bancorp, Union State Bank, Chicago January 24, 1985 Carmel, Indiana Carmel, Indiana Wakefield Bancshares, Inc., The Farmers and Merchants State Kansas City January 2, 1985 Wakefield, Kansas Bank, Wakefield, Kansas Westchase Bancshares, Inc., West Belt National Bank, Dallas January 18, 1985 Houston, Texas Houston, Texas Willow Bend Bancshares, Inc., BonState Bancshares, Inc., Dallas January 17, 1985 Piano, Texas Bonham, Texas Wilson & Muir Bancorp, Inc., Citizens Bank & Trust Company St. Louis January 7, 1985 Bardstown, Kentucky of Grayson County, Leitchfield, Kentucky Section 4 Nonbanking Reserve Effective Applicant company Bank date First Bank System, Inc., Marshall-Salsbury, Inc., Minneapolis January 22, 1985 Minneapolis, Minnesota Billings, Montana Full Service Insurance Agency, Philip Peterson Insurance Minneapolis January 16, 1985 Inc., Agency, Buxton, North Dakota Buxton, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 1985 Section 4—Continued Nonbanking Reserve Effective Applicant company Bank date Manufacturers Hanover C.I.T. Financial Corporation, New York January 4, 1985 Corporation, New York City, New York New York City, New York Security Pacific Corporation, EARNS, Inc., San Francisco January 11, 1985 Los Angeles, California Simi Valley, California United Community Financial A. H. Johnson Agency, Inc., Chicago December 24, 1984 Corporation, Wayland, Michigan Wayland, Michigan PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Florida Department of Banking v. Board of Gover- Ohio Deposit Guarantee Fund v. Board of Governors, nors, No. 84-3831 (11th Cir., filed Nov. 30, 1984). No. 84-1257 (10th Cir., filed Jan. 28, 1984). Florida Department of Banking v. Board of Gover- Colorado Industrial Bankers Association v. Board of nors, No. 84-3832 (11th Cir., filed Nov. 30, 1984). Governors, No. 84-1122 (10th Cir., filed Jan. 27, Citicorp v. Board of Governors, No. 84-445 (2d Cir., 1984). filed Oct. 12, 1984). Financial Institutions Assurance Corp. v. Board of David Bolger Revocable Trust v. Board of Governors, Governors, No. 84-1101 (4th Cir., filed Jan. 27, No. 84-3550 (3rd Cir., filed Aug. 31, 1984). 1984). Citicorp v. Board of Governors, No. 84-4121 (2d Cir., First Bancorporation v. Board of Governors, No. 84filed Aug. 27, 1984). 1011 (10th Cir., filed Jan. 5, 1984). Seattle Bancorporation v. Board of Governors, No Dimension Financial Corporation v. Board of Gover- 84-7535 (9th Cir., filed Aug. 15, 1984). nors, No. 83-2696 (10th Cir., filed Dec. 30, 1983). Bank of New York Co., Inc. v. Board of Governors, Oklahoma Bankers Association v. Federal Reserve No. 84-4091, (2d Cir., filed June 14, 1984). Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983). Citicorp v. Board of Governors, No. 84-4081 (2d Cir., The Committee for Monetary Reform v. Board of filed May 22, 1984). Governors, No. 84-5067 (D.C. Cir., filed June 16, Lamb v. Pioneer First Federal Savings and Loan 1983). Association, No. C84-702 (D. Wash., filed May 8, First Bank & Trust Company v. Board of Governors, 1984). No. 81-38 (E.D. Ky., filed Feb. 24, 1981). Melcher v. Federal Open Market Committee, No. 84- 9 to 5 Organization for Women Office Workers v. 1335 (D.D.C., filed, Apr. 30, 1984). Board of Governors, No. 83-1171 (1st Cir., filed Florida Bankers Association v. Board of Governors, Dec. 30, 1980). No. 84-3269 and No. 84-3270 (11th Cir., filed Securities Industry Association v. Board of Gover- Apr. 20, 1984). nors, No. 80-2614 (D.C. Cir., filed Oct. 24. 1980), Northeast Bancorp, Inc. v. Board of Governors, No. and No. 80-2730 (D.C. Cir., filed Oct. 24, 1980). 84-363 (U.S., filed Mar. 27, 1984). A. G. Becker, Inc. v. Board of Governors, No. 80- Huston v. Board of Governors, No. 84-1361 (8th Cir., 2614 (D.C. Cir., filed Oct. 14, 1980), and No. 80filed Mar. 20, 1984); and No. 84-1084 (8th Cir. filed 2730 (D.C. Cir., filed Oct. 14, 1980). Jan. 17, 1984). State of Ohio v. Board of Governors, No. 84-1270 (10th Cir., filed Jan. 30, 1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

At Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks MONEY STOCK AND BANK CREDIT A22 Gross demand deposits—individuals, partnerships, and corporations A3 Reserves, money stock, liquid assets, and debt measures A4 Reserves of depository institutions, Reserve FINANCIAL MARKETS Bank credit A5 Reserves and borrowings—Depository A23 Commercial paper and bankers dollar institutions acceptances outstanding A5 Federal funds and repurchase agreements— A23 Prime rate charged by banks on short-term Large member banks business loans A24 Interest rates—money and capital markets A25 Stock market—Selected statistics POLICY INSTRUMENTS A26 Selected financial institutions—Selected assets and liabilities A6 Federal Reserve Bank interest rates A7 Reserve requirements of depository institutions A8 Maximum interest rates payable on time and FEDERAL FINANCE savings deposits at federally insured institutions A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation FEDERAL RESERVE BANKS A30 Gross public debt of U.S. Treasury—Types and ownership A10 Condition and Federal Reserve note statements A31 U.S. government securities dealers— All Maturity distribution of loan and security Transactions holdings A32 U.S. government securities dealers—Positions and financing A3 3 Federal and federally sponsored credit MONETARY AND CREDIT AGGREGATES agencies—Debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock, liquid assets, and debt measures A15 Bank debits and deposit turnover A16 Loans and securities—All commercial banks COMMERCIAL BANKING INSTITUTIONS A17 Major nondeposit funds A18 Assets and liabilities, last-Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • March 1985 SECURITIES MARKETS AND International Statistics CORPORATE FINANCE SUMMARY STATISTICS A34 New security issues—State and local governments and corporations A51 U.S. international transactions—Summary A35 Open-end investment companies—Net sales and A52 U.S. foreign trade asset position A52 U.S. reserve assets A35 Corporate profits and their distribution A52 Foreign official assets held at Federal Reserve A35 Nonfinancial corporations—Assets and Banks liabilities A53 Foreign branches of U.S. banks—Balance sheet A36 Total nonfarm business expenditures on new data plant and equipment A55 Selected U.S. liabilities to foreign official A36 Domestic finance companies—Assets and institutions liabilities and business credit REPORTED BY BANKS IN THE UNITED STATES REAL ESTATE A55 Liabilities to and claims on foreigners A37 Mortgage markets A56 Liabilities to foreigners A38 Mortgage debt outstanding A58 Banks' own claims on foreigners A59 Banks' own and domestic customers' claims on foreigners CONSUMER INSTALLMENT CREDIT A59 Banks' own claims on unaffiliated foreigners A60 Claims on foreign countries—Combined A39 Total outstanding and net change domestic offices and foreign branches A40 Terms REPORTED BY NONBANKING BUSINESS FLOW OF FUNDS ENTERPRISES IN THE UNITED STATES A41 Funds raised in U.S. credit markets A61 Liabilities to unaffiliated foreigners A42 Direct and indirect sources of funds to credit A62 Claims on unaffiliated foreigners markets SECURITIES HOLDINGS AND TRANSACTIONS Domestic Nonfinancial Statistics A63 Foreign transactions in securities A64 Marketable U.S. Treasury bonds and notes— SELECTED MEASURES Foreign holdings and transactions A43 Nonfinancial business activity—Selected measures INTEREST AND EXCHANGE RATES A43 Labor force, employment, and unemployment A44 Output, capacity, and capacity utilization A65 Discount rates of foreign central banks A45 Industrial production—Indexes and gross value A65 Foreign short-term interest rates A47 Housing and construction A66 Foreign exchange rates A48 Consumer and producer prices A49 Gross national product and income A50 Personal income and saving A67 Guide to Tabular Presentation, Statistical Releases, and Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1984 1984 Qi Q2 Q3 Q4 Aug. Sept. Oct. Nov.' Dec. Reserves of depository institutions2 1 Total 7.7 8.5 6.8 -.6 4.6 -7.6 -12.3 11.3 19.5 2 Required 5.3 10.3 6.6 -1.5 2.3 -5.8 -12.1 9.1 14.1 3 Nonborrowed 9.0 -10.8 -44.6 30.7 -72.3 21.0 32.4 66.3 73.4 4 Monetary base3 9.3 7.1 7.3 3.2 7.5 .1 2.3 4.0 6.1 Concepts of money, liquid assets, and debt4 5 Ml 7.2 6.2 4.5 2.0 1.8' 5.<K -7.4 8.6 11.1 6 M2 6.9 6.9 6.2 9.4 4.8 7.6' 6.1 15.1' 15.2 7 M3 7.9' 10.5 8.3r 10.7 4.6' 7.4' 10.4' 15.6 13.8 8 L 10.(K 12.4 12.1 n.a. 7.6' 8.1 n.a. n.a. n.a. 9 Debt 12.9 13.1 12.7 12.7 13.2 10.2 11.7' 15.1 n.a. Nontransaction components 10 In M25 6.8 7.1 6.7' 11.7 5.7 8.6 10.2' 17.0 16.6 11 In M3 only6 12.1' 26.C 16.7' 16.0 3.7' 6.6' 27.5 17.4 8.5 Time and savings deposits Commercial banks 12 Savings7 •. -16.2 -6.4 -5.6 -6.3 -10.4 -3.8 -6.7 -4.8 -10.6 13 Small-denomination time8 4.4 8.6 18.4 9.2 19.4' 14.0 6.9' 5.0 5.3 14 Large-denomination time9-10 -.3 24.3 21.4' 8.6 1.9' 11.8 21.4 -5.9 -.5 Thrift institutions 15 Savings7 -5.1 .5 -7.0 -6.0 -15.0 -3.5 -5.6' -4.9 -4.2 16 Small-denomination time 11.8 8.9 22.7 18.2 27.4' 20.1 20.5 12.0 9.3 17 Large-denomination time9 59.0 46.4 35.7 24.5 22.4 -14.0 32.0 39.8 46.1 Debt components4 18 Federal 16.7 12.7 14.9 15.0 21.9 10.0 11.1 20.4 n.a. 19 Nonfederal 11.8 13.2 12.0 12.1 10.7 10.3 11.8' 13.5 n.a. 20 Total loans and securities at commercial banks11 11.8' 11.<K 9.1' 9.1' 7.C 9.8 6.5' 12.8' 9.5 1. Unless otherwise noted, rates of change are calculated from average funds (general purpose and broker/dealer), foreign governments and commercial amounts outstanding in preceding month or quarter. banks, and the U.S. government. Also subtracted is a consolidation adjustment 2. Figures incorporate adjustments for discontinuities associated with the that represents the estimated amount of demand deposits and vault cash held by implementation of the Monetary Control Act and other regulatory changes to thrift institutions to service their time and savings deposits. reserve requirements. To adjust for discontinuities due to changes in reserve M3: M2 plus large-denomination time deposits and term RP liabilities (in requirements on reservable nondeposit liabilities, the sum of such required amounts of $100,000 or more) issued by commercial banks and thrift institutions, reserves is subtracted from the actual series. Similarly, in adjusting for discontin- term Eurodollars held by U.S. residents at foreign branches of U.S. banks uities in the monetary base, required clearing balances and adjustments to worldwide and at all banking offices in the United Kingdom and Canada, and compensate for float also are subtracted from the actual series. balances in both taxable and tax-exempt, institution-only money market mutual 3. The monetary base not adjusted for discontinuities consists of total funds. Excludes amounts held by depository institutions, the U.S. government, reserves plus required clearing balances and adjustments to compensate for float money market funds, and foreign banks and official institutions. Also subtracted is at Federal Reserve Banks plus the currency component of the money stock less a consolidation adjustment that represents the estimated amount of overnight RPs the amount of vault cash holdings of thrift institutions that is included in the and Eurodollars held by institution-only money market mutual funds. currency component of the money stock plus, for institutions not having required L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term reserve balances, the excess of current vault cash over the amount applied to Treasury securities, commercial paper and bankers acceptances, net of money satisfy current reserve requirements. After the introduction of contemporaneous market mutual fund holdings of these assets. reserve requirements (CRR), currency and vault cash figures are measured over Debt: Debt of domestic nonfinancial sectors consists of outstanding credit the weekly computation period ending Monday. market debt of the U.S. government, state and local governments, and private Before CRR, all components of the monetary base other than excess reserves nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conare seasonally adjusted as a whole, rather than by component, and excess sumer credit (including bank loans), other bank loans, commercial paper, bankers reserves are added on a not seasonally adjusted basis. After CRR, the seasonally acceptances, and other debt instruments. The source of data on domestic adjusted series consists of seasonally adjusted total reserves, which include nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted data are on an end-of-month basis. Growth rates for debt reflect adjustments for currency component of the money stock plus the remaining items seasonally discontinuities over time in the levels of debt presented in other tables. adjusted as a whole. 5. Sum of overnight RPs and Eurodollars, money market fund balances 4. Composition of the money stock measures and debt is as follows: (general purpose and broker/dealer), MMDAs, and savings and small time Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults deposits less the estimated amount of demand deposits and vault cash held by of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits thrift institutions to service their time and savings deposit liabilities. at all commercial banks other than those due to domestic banks, the U.S. 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, government, and foreign banks and official institutions less cash items in the money market fund balances (institution-only), less a consolidation adjustment process of collection and Federal Reserve float; and (4) other checkable deposits that represents the estimated amount of overnight RPs and Eurodollars held by (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer institution-only money market mutual funds. service (ATS) accounts at depository institutions, credit union share draft 7. Excludes MMDAs. accounts, and demand deposits at thrift institutions. The currency and demand 8. Small-denomination time deposits—including retail RPs—are those issued deposit components exclude the estimated amount of vault cash and demand in amounts of less than $100,000. All IRA and Keogh accounts at commercial deposits respectively held by thrift institutions to service their OCD liabilities. banks and thrifts are subtracted from small time deposits. M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) 9. Large-denomination time deposits are those issued in amounts of $100,000 issued by all commercial banks and overnight Eurodollars issued to U.S. residents or more, excluding those booked at international banking facilities. by foreign branches of U.S. banks worldwide, MMDAs, savings and small- 10. Large-denomination time deposits at commercial banks less those held by denomination time deposits (time deposits—including retail RPs—in amounts of money market mutual funds, depository institutions, and foreign banks and less than $100,000), and balances in both taxable and tax-exempt general purpose official institutions. and broker/dealer money market mutual funds. Excludes individual retirement 11. Changes calculated from figures shown in table 1.23. Beginning December accounts (IRA) and Keogh balances at depository institutions and money market 1981, growth rates reflect shifts of foreign loans and securities from U.S. banking funds. Also excludes all balances held by U.S. commercial banks, money market offices to international banking facilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • March 1985 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending FFFaaaccctttooorrrsss 1984 1984 Oct. Nov. Dec. Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 177,114 180,040 183,925 179,631 180,246 180,643 180,922 183,681 182,683 184,004 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 149,686 154,357 159,474 152,998 155,669 155,715 156,550 158,751 158,519 160,835 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 149,686 153,519 159,010 152,998 154,485 155,643 156,550 158,751 158,519 160,835 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 838 464 0 1,184 72 0 0 0 0 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,484 8,479 8,462 8,453 8,464 8,400 8,389 8,389 8,389 8,389 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,484 8,425 8,389 8,453 8,389 8,389 8,389 8,389 8,389 8,389 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 54 73 0 75 11 0 0 0 0 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 5,940 4,660 3,040 4,683 4,268 4,148 4,353 3,301 3,161 1,844 1111100000 FFFFFllllloooooaaaaattttt 820 829 1,499 727 892 1,156 513 1,833 1,331 1,227 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 12,184 11,715 11,450 12,770 10,953 11,225 11,117 11,407 11,284 11,709 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,097 11,096 11,096 11,096 11,096 11,096 11,096 11,096 11,096 11,096 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt.................... 4,618 4.618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 16,266 16,317 16,388 16,313r 16,329 16,345' 16,361 16,375 16,389 16,403 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 176,560 178,701 181,720 178,585' 179,101 179,859' 179,729 180,809 181,412 182,813 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 474 490 511 491 490 495 503 512 512 513 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 4,021 3,177 3,406 3,128 3,509 2,984 2,586 3,331 3,468 3,669 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 226 246 247 266 234 223 307 233 251 214 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss .................... 1,483 1,676 1,436 1,590 1,520 1,576 1,709 1,484 1,778 1.619 2222200000 OOOOOttttthhhhheeeeerrrrr 348 450 537 497 466 454 434 441 455 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd 520 cccccaaaaapppppiiiiitttttaaaaalllll 6,195 6,370 6,265 6,304 6,236 6,335 6,406 6,402 6,330 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll 6,298 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 19,789 21,648 20,951 20,566 20,919 21,506 22,338 20,816 20,351 21,020 End-of-month figures Wednesday figures 1984 1984 Oct. Nov. Dec. Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 174,892 182,391 186,384 180,370 181,617 180,899 179,717 183,268 184,171 184,771 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 148,220 157,770 160,850 153,152 154,157 155,214 153,335 158,404 159,237 161,529 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 148,220 157,770 159,223 153,152 153,654 155,214 153,335 158,404 159,237 161,529 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 1,627 0 503 0 0 0 0 0 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,479 8,389 8,777 8,389 8,466 8,389 8,389 8,389 8,389 8,389 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,479 8,389 8,389 8,389 8,389 8,389 8,389 8,389 8,389 8,389 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 388 0 77 0 0 0 0 0 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 5,060 5,073 3,577 4,968 6,732 3,750 5,133 3,155 3,514 2,423 3333322222 FFFFFllllloooooaaaaattttt 658 -16 833 821 1,183 2,371 1,350 1,912 1,067 436 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 12,475 11,175 12,347 13,040 11,079 11,175 11,510 11,408 11,964 11,994 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,096 11,096 11,0% 11,096 11,096 11,096 11,096 11,096 11,096 11,096 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt ............... 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 16,295 16,359'' 16,415 16,327' 16,343' 16,359' 16,373 16,387 16,401' 16,415 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 176,300 179,51c 183,793 179,162' 179,777' 179,921' 180,150 181,367 182,020 183,768 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 482 500 513 489 493 500 511 512 513 511 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 3,791 2,216 5,316 3,740 2,679 3,431 2,929 2,627 3,646 3,587 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 270 392 253 191 226 213 259 256 272 182 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss .................... 1,132 1,254 1,126 1,134 1,138 1,254 1,254 1,136 1,135 1,126 4444422222 OOOOOttttthhhhheeeeerrrrr 321 447 867 494 462 456 427 423 416 566 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 5,997 6,347 5,952 6,0% 6,062 6,057 6,115 6,203 6,155 6,133 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 18,608 23,798 20,693 21,105 22,837 21,140 20,159 22,845 22,129 21,027 1. Includes securities loaned—fully guaranteed by U.S government securities 2. Excludes required clearing balances and adjustments to compensate for pledged with Federal Reserve Banks—and excludes (if any) securities sold and float. 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

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages8 RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1982 1983 1984 1984 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss''''' 24,804 20,986 21,747 20,210 19,885 19,263 20,135 20,086 20,829 21,747 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh22222 20,392 20,755 22,316 20,770 21,134 21,688 21,232 21,875 21,827 22,316 33333 VVVVVaaaaauuuuulllllttttt cccccaaaaassssshhhhh uuuuussssseeeeeddddd tttttooooo sssssaaaaatttttiiiiisssssfffffyyyyy rrrrreeeeessssseeeeerrrrrvvvvveeeee rrrrreeeeeqqqqquuuuuiiiiirrrrreeeeemmmmmeeeeennnnntttttsssss33333 ..... 17,049 17,908 18,957 17,308 17,579 17,995 17,900 18,413 18,392 18,957 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 3,343 2,847 3,359 3,461 3,555 3,694 3,333 3,462 3,434 3,359 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss55555 41,853 38,894 40,704 37,518 37,464 37,258 38,035 38,499' 39,222r 40,704 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 41,353 38,333 39,844 36,752 36,858 36,575 37,415 37,892 38,542' 39,844 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss66666 500 561 860 767 607 683 620 607 680' 860 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 697 774 3,186 3,300 5,924 8,017 7,242 6,017 4,617 3,186 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 33 96 113 264 308 346 319 299 212 113 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 187 2 2,604 1,873 5,008 7,043 6,459 5,057 3,837 2,604 Biweekly averages of daily figures for weeks ending 1984 1985 Aug. 29 Sept. 12 Sept. 26 Oct. 10 Oct. 24 Nov. 7 Nov. 21 Dec. 5 Dec. 19 Jan. 2p 1111111111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss''''' 18,722 20,158 20,038 20,406 19,617 20,566 20,734 21,184 21,584 22,171 1111122222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh22222 21,981 20,782 21,522 21,571 22,329 21,404 22,117 21,705 21,667 23,328 1111133333 VVVVVaaaaauuuuulllllttttt cccccaaaaassssshhhhh uuuuussssseeeeeddddd tttttooooo sssssaaaaatttttiiiiisssssfffffyyyyy rrrrreeeeessssseeeeerrrrrvvvvveeeee rrrrreeeeeqqqqquuuuuiiiiirrrrreeeeemmmmmeeeeennnnntttttsssss33333 ..... 18,166 17,405 18,232 18,221 18,784 17,949 18,661 18,320 18,547 19,701 1111144444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 3,815 3,377 3,290 3,350 3,545 3,456 3,456 3,385 3,120 3,627 1111155555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss55555 36,887 37,563 38,270 38,627 38,400 38,514 39,395 39,503 40,131 41,872 1111166666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 36,211 36,929 37,744 37,723 37,984 37,949 38,800 38,602 39,617 40,628 1111177777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss66666 677 634 527 904 416 566 595 902 514 1,245 1111188888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 8,146 7,755 7,110 6,165 6,234 5,373 4,476 4,251 3,231 2,691 1111199999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 360 309 328 315 305 265 204 184 115 81 2222200000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 7,184 7,001 6,369 5,147 5,431 4,184 3,888 3,488 2,774 2,038 1. Excludes required clearing balances and adjustments to compensate for computation period by institutions having required reserve balances at Federal float. Reserve Banks plus the amount of vault cash equal to required reserves during the 2. Dates refer to the maintenance periods in which the vault cash can be used to maintenance period at institutions having no required reserve balances. satisfy reserve requirements. Under contemporaneous reserve requirements, 6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy maintenance periods end 30 days after the lagged computation periods in which reserve requirements less required reserves. the balances are held. 7. Extended credit consists of borrowing at the discount window under the 3. Equal to all vault cash held during the lagged computation period by terms and conditions established for the extended credit program to help institutions having required reserve balances at Federal Reserve Banks plus the depository institutions deal with sustained liquidity pressures. Because there is amount of vault cash equal to required reserves during the maintenance period at not the same need to repay such borrowing promptly as there is with traditional institutions having no required reserve balances. short-term adjustment credit, the money market impact of extended credit is 4. Total vault cash at institutions having no required reserve balances less the similar to that of nonborrowed reserves. amount of vault cash equal to their required reserves during the maintenance 8. Before February 1984, data are prorated monthly averages of weekly period. averages; beginning February 1984, data are prorated monthly averages of 5. Total reserves not adjusted for discontinuities consist of reserve balances biweekly averages. with Federal Reserve Banks, which exclude required clearing balances and NOTE. These data also appear in the Board's H.3 (502) release. For address, see adjustments to compensate for float, plus vault cash used to satisfy reserve inside front cover. requirements. Such vault cash consists of all vault cash held during the lagged 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1984 and 1985 week ending Monday BByy mmaattuurriittyy aanndd ssoouurrccee Nov. 19 Nov. 26 Dec. 3' Dec. 1C Dec. 17' Dec. 24 Dec. 31 Jan. 7 Jan. 14 One day and continuing contract 1 Commercial banks in United States 63,478 61,122 60,725 65,458 61,792 5599,,443355 6600,,220033 6677,,555544 6633,,996666 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 29,310 30,099 30,210 29,041 28,098 28,916 27,176 27,539 28,677 3 Nonbank securities dealers 6,498 5,878 7,637 6,295 5,362 5,536 5,717 5,796 6,264 4 All other 28,937 23,077 29,154 27,068 27,456 22,712 24,580 26,963 26,188 Alt other maturities 5 Commercial banks in United States 8,677 10,027 10,044 9,882 10,077 11,312 11,462 88,,551133 88,,443388 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,716 7,736 8,058 8,138 8,037 8,458 8,440 8,140 8,254 7 Nonbank securities dealers 6,574 7,596 5,979 5,685 6,058 6,338' 6,190 5,847 7,475 8 All other 10,342 15,416 10,226 9,649 10,209 13,919 11,864 8,528 8,601 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 30,583 28,549 29,899 27,915 26,416 28,779 29,370 29,603 29,016 10 Nonbank securities dealers 5,520 6,190 6,701 6,617 7,177 6,978 6,423 6,390 6,756 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 Financial Statistics • March 1985 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit1 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 1/28/85 date rate 1/28/85 rate 1/28/85 rate 1/28/85 rate Boston 12/24/84 m 8'/i 9 9Xh 10 IOV2 12/24/84 New York 12/24/84 12/24/84 Philadelphia 12/24/84 12/24/84 Cleveland 12/24/84 12/24/84 Richmond 12/24/84 12/24/84 Atlanta 12/24/84 12/24/84 Chicago 12/24/84 12/24/84 St. Louis 12/24/84 12/24/84 Minneapolis 12/24/84 12/24/84 Kansas City 12/24/84 12/24/84 Dallas 12/24/84 12/24/84 San Francisco... 8 12/24/84 8'/i 81/2 9 10 lOVi 12/24/84 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1973 m m 1978— July 3 7-71/4 71/4 11998811—— MMaayy 55 13-14 14 1974— Apr. 25 714-8 10 7'/4 71/4 88 14 14 3 0 8 Aug. 21 73/4 73/4 Nov. 2 13-14 13 Dec. 9 73/4-8 7733//44 Sept. 22 8 8 6 13 13 16 73/4 Oct. 16 8-8'/2 8l/2 Dec. 4 12 12 1975— Jan. 1 6 0 7 71 1 /4 /4 — -7 7 V 3/ 4 4 7 7 3 1 / / 4 4 Nov. 2 1 0 3 8< 9 8 / > > 2 / / - 2 2 9 >A 9 8 9 1 V 1 / / > i 2 1982— July 2 2 0 3 11 II ^ V -1 2 2 l 1 l 1 ' 1 /2 /2 24 71/4 7'/4 Aug. 2 11-1 m 11 Feb. 5 7 63/ 6 4 3 - / 7 4 1 /4 6633//44 1979—J A u u ly g . 2 1 0 7 10 1 - 0 1 01/! 1 1 0 0 % 1 3 6 lO 1 V 1 i 1 IO 1 V 2 Mar. 10 6'/4-63/4 6'/4 20 10V2 10V2 27 lO-lOVi 10 14 6'/4 6!/4 Sept. 19 10^-11 11 30 10 10 May 16 6-61/4 6 21 11 11 Oct. 12 91/2-IO 91/2 23 6 6 Oct. 8 11-12 12 13 91/2 91/2 10 12 12 Nov. 22 9-91/2 9 1976— J N a o n v . . 2 2 1 2 3 9 5 5 1/ 5V 4- if 5 -6t 1 /! 5 5 51 V > / i 4 / 2 1980—Feb. 1 1 5 9 12 1 - 3 1 3 1 1 3 3 Dec. 2 1 1 6 4 5 8 8 1 '/2 /2 9 — - 9 9 9 8 9 V 2 26 51/4 51/4 May 29 12-13 13 17 8V2- 81/2 1977— Aug. 3 3 0 1 5 5 1 1/ /4 4 - - 5 5 3 3 / /4 4 5 5 1 3 / / 4 4 June 1 3 1 3 0 6 11 1 1 - 2 1 1 2 1 1 1 2 1 1 1984— Apr. 1 9 3 81/2 9 - 9 9 9 Sept. 2 53/4 53/4 July 28 10-11 10 Nov. 21 8i/>-9 81/2 Oct. 26 6 6 29 10 10 26 81/2 81/2 Sept. 26 11 11 Dec. 24 8 8 1978— Jan. 9 6-61/2 61/2 Nov. 17 12 12 20 6 Vi 6>/2 Dec. 5 12-13 13 May 11 6Vi-7 7 13 13 12 7 7 In effect Jan. 28, 1985 8 8 1. Applicable to advances when exceptional circumstances or practices involve Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979, 1980, only a particular depository institution and to advances when an institution is 1981, and 1982. under sustained liquidity pressures. As an alternative, for loans outstanding for In 1980 and 1981, the Federal Reserve applied a surcharge to short-term more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes adjustment credit borrowings by institutions with deposits of $500 million or more into account rates on market sources of funds, but in no case will the rate charged that had borrowed in successive weeks or in more than 4 weeks in a calendar be less than the basic rate plus one percentage point. Where credit provided to a quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, particular depository institution is anticipated to be outstanding for an unusually 1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was prolonged period and in relatively large amounts, the time period in which each adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and rate under this structure is applied may be shortened. See section 201.3(b)(2) of to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Regulation A. Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for 2. Rates for short-term adjustment credit. For description and earlier data see applying the surcharge was changed from a calendar quarter to a moving 13-week the following publications of the Board of Governors: Banking and Monetary 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 INSTITUTIONS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyypp dd ee ee pp oo oo ff ss ii dd tt ee ii pp nn oo tt ss ee ii rr tt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo oo ss ff iitt dd ee ii pp nn oo ttee ss rr ii vv tt,, aa ll aa 55 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand2 Net transaction accounts1-* 7 12/30/76 $0-$28.9 million 3 12/29/83 9VS 12/30/76 Over $28.9 million 1122 1122//2299//8833 $10 million-$100 million IP/4 12/30/76 $100 million-$400 million 123/4 12/30/76 Nonpersonal time deposits9 Over $400 million 161/4 12/30/76 By original maturity Less than 1 Vi years 3 10/6/83 Time and savings2,3 l'/2 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 Vh 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 2Vi 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report reduced to the extent that foreign loans and balances declined. for 1976, table 13. Under provisions of the Monetary Control Act, depository 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97institutions include commercial banks, mutual savings banks, savings and loan 320) provides that $2 million of reservable liabilities (transaction accounts, associations, credit unions, agencies and branches of foreign banks, and Edge Act nonpersonal time deposits, and Eurocurrency liabilities) of each depository corporations. institution be subject to a zero percent reserve requirement. The Board is to adjust 2. Requirement schedules are graduated, and each deposit interval applies to the amount of reservable liabilities subject to this zero percent reserve requirethat part of the deposits of each bank. Demand deposits subject to reserve ment each year for the next succeeding calendar year by 80 percent of the requirements were gross demand deposits minus cash items in process of percentage increase in the total reservable liabilities of all depository institutions, collection and demand balances due from domestic banks. measured on an annual basis as of June 30. No corresponding adjustment is to be The Federal Reserve Act as amended through 1978 specified different ranges of made in the event of a decrease. Effective Dec. 9, 1982, the amount of the requirements for reserve city banks and for other banks. Reserve cities were exemption was established at $2.1 million. Effective with the reserve maintenance designated under a criterion adopted effective Nov. 9, 1972, by which a bank period beginning Jan. 1, 1985, the amount of the exemption is $2.4 million. In having net demand deposits of more than $400 million was considered to have the determining the reserve requirements of a depository institution, the exemption character of business of a reserve city bank. The presence of the head office of shall apply in the following order: (1) nonpersonal money market deposit accounts such a bank constituted designation of that place as a reserve city. Cities in which (MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts there were Federal Reserve Banks or branches were also reserve cities. Any (NOW accounts less allowable deductions); (3) net other transaction accounts; banks having net demand deposits of $400 million or less were considered to have and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those the character of business of banks outside of reserve cities and were permitted to with the highest reserve ratio. With respect to NOW accounts and other maintain reserves at ratios set for banks not in reserve cities. transaction accounts, the exemption applies only to such accounts that would be Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances subject to a 3 percent reserve requirement. due from domestic banks to their foreign branches and on deposits that foreign 6. For nonmember banks and thrift institutions that were not members of the branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, respectively. The Regulation D reserve requirement of borrowings from unrelated 1987. For banks that were members on or after July 1, 1979, but withdrew on or banks abroad was also reduced to zero from 4 percent. before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends Effective with the reserve computation period beginning Nov. 16, 1978, on Oct. 24, 1985. For existing member banks the phase-in period of about three domestic deposits of Edge corporations were subject to the same reserve years was completed on Feb. 2, 1984. All new institutions will have a two-year requirements as deposits of member banks. phase-in beginning with the date that they open for business, except for those 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as institutions 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 margined 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; time deposits, Eurodollar borrowings, repurchase agreements against U.S. effective Dec. 30, 1982, to $26.3 million; effective Dec. 29, 1983, to $28.9 million; government and federal agency securities, federal funds borrowings from non- and effective Jan. 1, 1985, to $29.8 million. member institutions, and certain other obligations. In general, the base for the 9. In general, nonpersonal time deposits are time deposits, including savings marginal reserve requirement was originally the greater of (a) $100 million or (b) deposits, that are not transaction accounts and in which a beneficial interest is the average amount of the managed liabilities held by a member bank, Edge held by a depositor that is not a natural person. Also included are certain corporation, or family of U.S. branches and agencies of a foreign bank for the two transferable time deposits held by natural persons, and certain obligations issued reserve computation periods ending Sept. 26, 1979. For the computation period to depository institution offices located outside the United States. For details, see beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease section 204.2 of Regulation D. in an institution's U.S. office gross loans to foreigners and gross balances due from foreign offices of other institutions between the base period (Sept. 13-26, NOTE. Required reserves must be held in the form of deposits with Federal 1979) and the week ending Mar. 12, 1980, whichever was greater. For the Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a computation period beginning May 29, 1980, the base was increased by iVi Federal Reserve Bank indirectly on a pass-through basis with certain approved percent above the base used to calculate the marginal reserve in the statement institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • March 1985 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 ns)1 In effect Jan. 31, 1985 In effect Jan. 31, 1985 Type of deposit Percent Effective date Percent Effective date 1 Savings 5Vi 1/1/84 5 Vi 7/1/79 2 Negotiable order of withdrawal accounts 51/4 12/31/80 5'/4 12/31/80 3 Negotiable order of withdrawal accounts of $1,000 or more2 1/5/83 1/5/83 4 Money market deposit account2 (3) 12/14/82 (3) 12/14/82 Time accounts by maturity 5 7-31 days of less than $1,0004 5% 1/1/84 5Vi 9/1/82 6 7-31 days of $1,000 or more2 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 the minimum denomination and average maintenance balance requirements was by commercial banks and thrift institutions on various categories of deposits were lowered to $1,000. No minimum maturity period is required for this account, but removed. For information regarding previous interest rate ceilings on all catego- depository institutions must reserve the right to require seven days notice before ries of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the withdrawals. When the average balance is less than $1,000, the account is subject Federal Home Loan Bank Board Journal, and the Annual Report of the Federal to the maximum ceiling rate of interest for NOW accounts; compliance with the Deposit Insurance Corporation before November 1983. average balance requirement may be determined over a period of one month. 2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to Depository institutions may not guarantee a rate of interest for this account for a minimum deposit requirements. Effective Jan. 1, 1985, the minimum denomina- period longer than one month or condition the payment of a rate on a requirement tion requirement was lowered from $2,500 to $1,000. that the funds remain on deposit for longer than one month. 3. Effective Dec. 14, 1982, depository institutions are authorized to offer a new 4. Effective Jan. 1, 1985, the minimum denomination requirement was lowered account with a required initial balance of $2,500 and an average maintenance from $2,500 to $1,000. Deposits of less than $1,000 issued to governmental units balance of $2,500 not subject to interest rate restrictions. Effective Jan. 1, 1985, continue to be subject to an interest rate ceiling of 8 percent. 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 Type of transaction 1983 May July Aug. Sept. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 13,899 17,067 18,888 610 8001 0 187 3,249 507 2 3 G Ex ro c s h s a n s g a e le s 6,746 0 8,3690 3,420 0 2,0030 0 897 0 1,491 0 71 0 1,300 0 4 Redemptions 1,816 3,000 2,400 2,200 801 600 800 0 2,200 Others within 1 year 0 0 5 6 G G r r o o s s s s p sa u l r e c s h ases 31 2 7 3 3120 484 0 0 0 0 0 0 0 600 0 0 0 7 Maturity shift 13,794 17,295 18,887 2,739 1,0690 428' 3,811 872 896 8 9 R Ex ed ch em an p g t e i ons -12,869 0 -14,1640 -16,55 8 3 7 -1,8070 0 -2,606 0 -2,274 0 0 0 -1,497 0 1 to 5 years 0 0 1 11 0 G G r r o o s s s s s p a u l r e c s h ases 1,702 0 1,7970 1,896 0 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -10,299 -14,524 -15,533 -2,279 -1,069 -345 -3,811 -872 -896' 13 Exchange 10,117 11,804 11,641 1,150 0 2,606 1,443 0 1,497 5 to 10 years 0 1 1 4 5 G G r r o o s s s s p sa u l r e c s h ases 393 0 388 0 890 0 0 0 0 16 Maturity shift -3,495 -2,172 -2,450 -383 52 17 Exchange 1,500 2,128 2,950 400 500 Over 10 years 0 1 1 8 9 G G r r o o s s s s p sa u l r e c s h ases 379 0 0 307 0 383 0 0 0 0 20 Maturity shift -601 -904 -77 -52 21 Exchange 1,253 234 1,962 257 332 All maturities 22 Gross purchases 16,690 19,870 22,540 610 801 0 0 3,849 507 23 Gross sales 6,769 8,369 3,420 2,003 0 897 187 71 1,300 24 Redemptions 1,816 3,000 2,487 2,200 0 600 800 0 2,200 Matched transactions 25 Gross sales 589,312 543,804 578,591 79,313 61,017 81,799 79,087 52,893 89,689 26 Gross purchases 589,647 543,173 576,908 79,608 61,331 81,143 78,842 55,776 85,884 Repurchase agreements 27 Gross purchases 79,920 130,774 105,971 8,267 23,298 14,830 4,992 26,040 28 Gross sales 78,733 130,286 108,291 12,199 26,460 14,830 166 30,867 29 Net change in U.S. government securities 9,626 8,358 12,631 -7,228 -2,047 -2,154 2,478 1,835 -6,798 FEDERAL AGENCY OBLIGATIONS Outright transactions 3 3 0 1 G G r r o o s s s s p sa u l r e c s h ases 4940 0 0 0 0 32 Redemptions 108 189 292 Repurchase agreements 0 33 Gross purchases 13,320 18,957 8,833 616 1,819 958 3,743 0 34 Gross sales 13,576 18,638 9,213 744 2,117 958 4,112 35 Net change in federal agency obligations . 130 130 -672 -169 -313 -1 364 -370 -14 BANKERS ACCEPTANCES 0 36 Repurchase agreements, net -582 1,285 -1,062 122 -426 0 0 0 37 Total net change in System Open Market Account 9,175 9,773 10,897 -7,275 -2,786 -2,155 2,842 1,465 -6,811 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 Financial Statistics • March 1985 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1984 1984 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Oct. Nov. Dec. Consolidated condition statement ASSETS 1 Gold certificate account 11,096 11,096 11,096 11,096 11,096 11,096 11,096 11,096 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 455 450 460 449 472 485 451 436 Loans 4 To depository institutions 3,750 5,133 3,155 3,514 2,423 5,060 5,073 3,577 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 00 00 00 00 00 00 Federal agency obligations 7 Bought outright 8,389 8,389 8,389 8,389 88,,338899 8,479 88,,338899 88,,338899 8 Held under repurchase agreements 0 0 0 0 0 0 0 388 U.S. government securities Bought outright 9 Bills 67,208 65,329 70,398 71,119 73,411 61,689 69,764 71,035 10 65,055 65,055 65,055 65,167 65,167 64,494 65,055 65,237 11 Bonds 22,951 22,951 22,951 22,951 22,951 22,037 22,951 22,951 12 Total bought outright1 155,214 153,335 158,404 159,237 161,529 148,220 157,770 159,223 13 Held under repurchase agreements 0 0 0 0 0 0 0 1,627 14 Total U.S. government securities 155,214 153,335 158,404 159,237 161,529 148,220 157,770 160,850 15 Total loans and securities 167,353 166,857 169,948 171,140 172,341 161,759 171,232 173,204 16 Cash items in process of collection 8,550 8,178 8,067 8,201 6,302 7,020 6,237 5,498 17 Bank premises 567 565 568 565 563 565 565 568 Other assets 18 Denominated in foreign currencies2 3,658 3,648 3,662 3,662 3,668 3,647 3,648 3,597 19 All other3 6,950 7,297 7,178 7,737 7,761 8,263 6,962 8,167 20 Total assets 203,247 202,709 205,597 207,468 206,821 197,453 204,809 207,184 LIABILITIES 21 Federal Reserve notes 164,517 164,738 165,952 166,581 168,336 160,972 164,102 168,327 Deposits 22 To depository institutions 22,394 21,413 23,981 23,264 2222,,115533 19,740 25,052 21,818 23 U.S. Treasury—General account 3,431 2,929 2,627 3,646 3,587 3,791 2,216 5,316 24 Foreign—Official accounts 213 259 256 272 182 270 392 253 25 Other 456 427 423 416 566 321 447 865 26 Total deposits 26,494 25,028 27,287 27,598 26,488 24,122 28,107 28,252 27 Deferred availability cash items 6,179 6,828 6,155 7,134 5,864 6,362 6,253 4,653 28 Other liabilities and accrued dividends4 2,484 2,556 2,616 2,570 2,561 2,433 2,682 2,700 29 Total liabilities 199,674 199,150 202,010 203,883 203,249 193,889 201,144 203,932 CAPITAL ACCOUNTS 30 Capital paid in 1,618 1,622 1,622 1,625 1,627 1,611 1,620 1,626 31 Surplus 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,626 32 Other capital accounts 490 472 500 495 480 488 580 0 33 Total liabilities and capital accounts 203,247 202,709 205,597 207,468 206,821 197,453 204,809 207,184 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 118,744 120,436 118,850 121,161 121,322 119,233 117,949 122,134 Federal Reserve note statement 35 Federal Reserve notes outstanding 193,762 194,429 195,304 194,984 194,391 191,730 193,727 193,867 36 LESS: Held by bank 29,245 29,691 29,352 28,403 26,055 30,758 29,625 25,540 37 Federal Reserve notes, net 164,517 164,738 165,952 166,581 168,336 160,972 164,102 168,327 Collateral held against notes net: 38 Gold certificate account 11,096 11,096 11,0% 11,096 11,096 11,096 11,096 11,096 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 148,803 149,024 150,238 150,867 152,622 145,258 148,388 152,613 42 Total coUateral 164,517 164,738 165,952 166,581 168,336 160,972 164,102 168,327 1. Includes securities loaned—fully guaranteed by U.S. government securities 4. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes (if any) securities sold and market exchange rates of foreign-exchange commitments. scheduled to be bought back under matched sale-purchase transactions. 2. Assets shown in this line are revalued monthly at market exchange rates. NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For 3. Includes special investment account at Chicago of Treasury bills maturing address, see inside front cover. within 90 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity groupings 1984 1984 Dec. 26 1 Loans—Total 3,750 5,133 3,155 3,514 2,423 5,060 5,073 2 Within 15 days 3,697 5,061 3,088 3,485 2,404 4,973 5,004 3 16 days to 90 days 53 72 67 29 19 87 69 4 91 days to 1 year 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 9 U.S. government securities—Total 155,214 153,335 158,404 159,237 161,529 148,220 157,770 10 Within 15 days1 7,463 3,793 7,441 8,186 9,525 5,672 4,892 11 16 days to 90 days 31,558 31,535 31,571 31,583 34,548 29,871 34,871 12 91 days to 1 year 44,798 46,797 48,182 48,258 46,246 44,811 46,797 13 Over 1 year to 5 years 37,062 36,877 36,877 36,877 36,877 33,690 36,877 14 Over 5 years to 10 years 14,100 14,100 14,100 14,100 14,100 14,808 14,100 15 Over 10 years 20,233 20,233 20,233 20,233 20,233 19,368 20,233 16 Federal agency obligations—Total. 8,389 8,389 8,389 8,389 8,389 8,479 8,389 17 Within 15 days1 226 158 73 210 187 17 226 18 16 days to 90 days 473 572 634 497 521 560 473 19 91 days to 1 year 1,727 1,710 1,739 1,739 1,665 1,756 1,727 20 Over 1 year to 5 years 4,334 4,313 4,297 4,297 4,350 4,358 4,334 21 Over 5 years to 10 years 1,230 1,237 1,247 1,247 1,267 1,232 1,230 22 Over 10 years 399 399 399 399 399 399 399 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 • March 1985 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1984 1981 1982 1983 1984 IItteemm Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjustec ADJUSTED FOR 1 Total reserves2 32.14 34.34 36.14 38.72 37.45 38.28 38.23 38.38 38.14 37.74 38.10 38.72 2 Nonborrowed reserves 31.51 33.70 35.36 35.53 34.46 34.98 32.31 30.36 30.89 31.73 33.48 35.53 3 Nonborrowed reserves plus extended credit3 31.65 33.89 35.37 38.14 34.50 36.85 37.32 37.41 37.35 36.79 37.32 38.14 4 Required reserves 31.82 33.84 35.58 37.86 36.87 37.52 37.63 37.70 37.52 37.14 37.42 37.86 5 Monetary base4 158.15 170.21 185.49 198.03 191.98 193.86 194.75 195.98 195.99 196.37 197.02 198.03 Not seasonally adjusted 6 Total reserves2 32.86 35.06 36.86 40.14 36.77 37.79 37.85 37.69 37.87 37.94 38.67 40.14 7 Nonborrowed reserves 32.23 34.43 36.09 36.95 33.78 34.49 31.92 29.67 30.63 31.92 34.06 36.95 8 Nonborrowed reserves plus extended credit3 32.37 34.62 36.09 39.56 33.82 36.37 36.93 36.72 37.09 36.98 37.89 39.56 9 Required reserves 32.54 34.56 36.30 39.28 36.19 37.03 37.24 37.01 37.25 37.33 37.99' 39.28 10 Monetary base4 161.00 173.24 188.76 202.04 191.33 194.24 195.91 196.13 196.07 196.12 198.21 202.04 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 41.92 41.85 38.89 40.70 36.52 37.52 37.46 37.26 38.03 38.50 39.22 40.70 12 Nonborrowed reserves 41.29 41.22 38.12 37.52 33.53 34.22 31.54 29.24 30.79 32.48 34.60 37.52 13 Nonborrowed reserves plus extended credit3 41.44 41.41 38.12 40.10 33.83 36.22 36.38 36.28 37.28 37.35 38.53 40.10 14 Required reserves 41.61 41.35 38.33 39.84 35.94 36.75 36.86 36.57 37.41 37.89 38.54 39.84 15 Monetary base4 170.47 180.52 192.36 202.60 191.08 193.96 195.53 195.70 196.23 196.68 m.ntr 202.60 1. Figures incorporate adjustments for discontinuities associated with the of vault cash holdings of thrift institutions that is included in the currency implementation of the Monetary Control Act and other regulatory changes to component of the money stock plus, for institutions not having required reserve reserve requirements. To adjust for discontinuities due to changes in reserve balances, the excess of current vault cash over the amount applied to satisfy requirements on reservable nondeposit liabilities, the sum of such required current reserve requirements. After the introduction of contemporaneous reserve reserves is subtracted from the actual series. Similarly, in adjusting for discontin- requirements (CRR), currency and vault cash figures are measured over the uities in the monetary base, required clearing balances and adjustments to weekly computation period ending Monday. compensate for float also are subtracted from the actual series. Before CRR, all components of the monetary base other than excess reserves 2. Total reserves not adjusted for discontinuities consist of reserve balances are seasonally adjusted as a whole, rather than by component, and excess with Federal Reserve Banks, which exclude required clearing balances and reserves are added on a not seasonally adjusted basis. After CRR, the seasonally adjustments to compensate for float, plus vault cash used to satisfy reserve adjusted series consists of seasonally adjusted total reserves, which include requirements. Such vault cash consists of all vault cash held during the lagged excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted computation period by institutions having required reserve balances at Federal currency component of the money stock and the remaining items seasonally Reserve Banks plus the amount of vault cash equal to required reserves during the adjusted as a whole. maintenance period at institutions having no required reserve balances. 5. Reflects actual reserve requirements, including those on nondeposit liabil- 3. Extended credit consists of borrowing at the discount window under the ities, with no adjustments to eliminate the effects of discontinuities associated terms and conditions established for the extended credit program to help with implementation of the Monetary Control Act or other regulatory changes to depository institutions deal with sustained liquidity pressures. Because there is reserve requirements. not the same need to repay such borrowing promptly as there is with traditional NOTE. Latest monthly and biweekly figures are available from the Board's short-term adjustment credit, the money market impact of extended credit is H.3(502) statistical release. Historical data and estimates of the impact on similar to that of nonborrowed reserves. required reserves of changes in reserve requirements are available from the 4. The monetary base not adjusted for discontinuities consists of total reserves Banking Section, Division of Research and Statistics, Board of Governors of the plus required clearing balances and adjustments to compensate for float at Federal Federal Reserve System, Washington, D.C. 20551. Reserve Banks and the currency component of the money stock less the amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Billions of dollars, averages of daily figures 1984 1981 1982 1983 1984 Dec. Dec. Dec. Dec. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Ml 441.9 480.5 525.4 554.5 548.9 545.5 549.4 554.5 2 M2 1,796.6 1,965.3 2,196.3 2,376.1 2,305.8 2,317.3' 2,346.4 2,376.1 3 M3 2,236.7 2,460.3 2,710.4 2,988.2 2,891.3' 2,916.4' 2,954.2' 2,988.2 4 L 2,598.4 2,868.7 3,178.7 n.a. 3,455.6 n.a. n.a. n.a. 5 Debt2 4,323.8 4,710.1 5,224.6 n.a. 5,743.1 5,798.9' 5,871.6 n.a. Ml components 6 Currency2 124.0 134.1 148.0 158.0 156.7 157.2 157.5 158.0 7 Travelers checks3 4.3 4.3 4.9 5.2 5.1 5.0 5.1 5.2 8 Demand deposits4 236.2 239.7 243.7 248.3 246.4 243.8 245.7 248.3 9 Other checkable deposits5 77.4 102.4 128.9 142.9 140.8 139.6 141.1 142.9 Nontransactions components 10 In M26 1,354.6 1,484.8 1,670.9 1,821.7 1,756.8' 1,771.8' 1,796.9' 1,821.7 11 In M3 only7 440.2 495.0 514.1 612.1 585.7' 599.1' 607.8' 612.1 Savings deposits9 12 Commercial Banks 159.7 164.9 134.6 123.6 125.9 125.2 124.7 123.6 13 Thrift institutions 186.1 197.2 178.2 170.8 172.9' 172.1' 171.4' 170.8 Small denomination time deposits9 14 Commerical Banks 349.6 382.2 353.1 387.7 382.2' 384.4 386.0' 387.7 15 Thrift institutions 477.7 474.7 440.0 509.5 492.2' 500.6' 505.6 509.5 Money market mutual funds 16 General purpose and broker/dealer 150.6 185.2 138.2 168.1 152.C 155.7' 162.2' 168.1 17 Institution-only 36.2 48.4 43.2 62.7 46.9 52.2 58.3 62.7 Large denomination time deposits10 18 Commercial Banks" 247.3 261.8 225.1 260.9 257.7' 262.3' 261.0' 260.9 19 Thrift institutions 54.3 66.1 100.4 148.8 135.1 138.7 143.3 148.8 Debt components 20 Federal debt 830.1 991.4 1,173.1 n.a. 1,310.9 1,323.1 1,345.6 n.a. 21 Non-federal debt 3,493.7 3,718.7 4,051.6 n.a. 4,432.2 4,475.8' 4,526.1 n.a. Not seasonally adjusted 22 Ml 452.3 491.9 537.9' 567.9 546.3 545.9' 553.4 567.9 23 M2 1,798.7 1,967.4 2,198.1 2,377.6 2,299.2' 2,316.5' 2,344.8 2,377.6 24 M3 2,242.7 2,466.6 2,716.5 2,594.7 2,885.6' 2,914.5' 2,955.2' 2,994.7 25 L 2,605.6 2,876.5 3,189.4 n.a. 3,443.8 n.a. n.a. n.a. 26 Debt2 4,323.8 4,710.1 5,218.5 n.a. 5,731.9 5,791.8' 5,861.8 n.a. Ml components 27 Currency2 126.1 136.4 150.5 160.9 156.5 156.7 158.6 160.9 28 Travelers checks3 4.1 4.1 4.6 4.9 5.4 5.0 4.8 4.9 29 Demand deposits4 243.6 247.3 251.6 256.9 245.3 244.9 248.0 256.9 30 Other checkable deposits5 78.5 104.1 131.3 145.7 139.1 139.4 142.0 145.7 Nontransactions components 31 M26 1,346.3 1,475.5 1,660.2 1,809.7 1,752.9' 1,770.6' 1,791.4 1,809.7 32 M3 only7 444.1 499.2 518.4 617.0 586.5' 597.9' 610.4' 617.0 Money market deposit accounts 33 Commercial banks n.a. 26.3 230.0 266.0 243.8 247.2 256.0' 266.0 34 Thrift institutions n.a. 16.6 145.9 143.9 139.6 139.6 141.3 143.9 Savings deposits8 35 Commercial Banks 157.5 162.1 132.0 121.0 124.7 123.8 122.3 121.0 36 Thrift institutions 184.7 195.5 176.5 169.1 171.8' 171.8' 170.4' 169.1 Small denomination time deposits9 37 Commercial Banks 347.7 380.1 351.0 385.2 381.6 383.8 384.9 385.2 38 Thrift institutions 475.6 472.4 437.6 506.7 490.1' 499.7' 504.2 506.7 Money market mutual funds 39 General purpose and broker/dealer 150.6 185.2 138.2 168.1 152.0' 155.7' 162.2' 168.1 40 Institution-only 36.2 48.4 43.2 62.7 46.9 52.2 58.3 62.7 Large denomination time deposits10 41 Commercial Banks" 252.1 266.2 228.5 264.7 258.6' 263.2 262.6' 264.7 42 Thrift institutions 54.3 66.2 100.7 149.5 136.9 141.7 146.1 149.5 Debt components 43 Federal debt 830.1 991.4 1,170.2 n.a. 1,310.5 1,323.0 1,343.0 n.a. 44 Non-federal debt 3,943.7 3,718.7 4,048.3 n.a. 4,421.4 4,468.8' 4,518.8 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • March 1985 NOTES TO TABLE 1.21 1. Composition of the money stock measures and debt is as follows: 2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults commercial banks. Excludes the estimated amount of vault cash held by thrift of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits institutions to service their OCD liabilities. at all commercial banks other than those due to domestic banks, the U.S. 3. Outstanding amount of U.S. dollar-denominated travelers checks of nongovernment, and foreign banks and official institutions less cash items in the bank issuers. Travelers checks issued by depository institutions are included in process of collection and Federal Reserve float; and (4) other checkable deposits demand deposits. (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer 4. Demand deposits at commercial banks and foreign-related institutions other service (ATS) accounts at depository institutions, credit union share draft than those due to domestic banks, the U.S. government, and foreign banks and accounts, and demand deposits at thrift institutions. The currency and demand official institutions less cash items in the process of collection and Federal deposit components exclude the estimated amount of vault cash and demand Reserve float. Excludes the estimated amount of demand deposits held at deposits respectively held by thrift institutions to service their OCD liabilities. commercial banks by thrift institutions to service their OCD liabilities. M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) 5. Consists of NOW and ATS balances at all depository institutions, credit issued by all commercial banks and overnight Eurodollars issued to U.S. residents union share draft balances, and demand deposits at thrift institutions. Other by foreign branches of U.S. banks worldwide, MMDAs, savings and small- checkable deposits seasonally adjusted equals the difference between the seasondenomination time deposits (time deposits—including retail RPs—in amounts of ally adjusted sum of demand deposits plus OCD and seasonally adjusted demand less than $100,000), and balances in both taxable and tax-exempt general purpose deposits. Included are all ceiling free "Super NOWs," authorized by the and broker/dealer money market mutual funds. Excludes individual retirement Depository Institutions Deregulation committee to be offered beginning Jan. 5, accounts (IRA) and Keogh balances at depository institutions and money market 1983. funds. Also excludes all balances held by U.S. commercial banks, money market 6. Sum of overnight RPs and overnight Eurodollars, money market fund funds (general purpose and broker/dealer), foreign governments and commercial balances (general purpose and broker/dealer), MMDAs, and savings and small banks, and the U.S. government. Also subtracted is a consolidation adjustment time deposits, less the consolidation adjustment that represents the estimated that represents the estimated amount of demand deposits and vault cash held by amount of demand deposits and vault cash held by thrift institutions to service thrift institutions to service their time and savings deposits. their time and savings deposits liabilities. M3: M2 plus large-denomination time deposits and term RP liabilities (in 7. Sum of large time deposits, term RPs and term Eurodollars of U.S. amounts of $100,000 or more) issued by commercial banks and thrift institutions, residents, money market fund balances (institution-only), less a consolidation term Eurodollars held by U.S. residents at foreign branches of U.S. banks adjustment that represents the estimated amount of overnight RPs and Eurodolworldwide and at all banking offices in the United Kingdom and Canada, and lars held by institution-only money market funds. balances in both taxable and tax-exempt, institution-only money market mutual 8. Savings deposits exclude MMDAs. funds. Excludes amounts held by depository institutions, the U.S. government, 9. Small-denomination time deposits—including retail RPs— are those issued money market funds, and foreign banks and official institutions. Also subtracted is in amounts of less than $100,000. All individual retirement accounts (IRA) and a consolidation adjustment that represents the estimated amount of overnight RPs Keogh accounts at commercial banks and thrifts are subtracted from small time and Eurodollars held by institution-only money market mutual funds. deposits. L; M3 plus the nonbank public holdings of U.S. savings bonds, short-term 10. Large-denomination time deposits are those issued in amounts of $100,000 Treasury securities, commercial paper and bankers acceptances, net of money or more, excluding those booked at international banking facilities. market mutual fund holdings of these assets. 11. Large-denomination time deposits at commercial banks less those held by Debt: Debt of domestic nonfinancial sectors consists of outstanding credit money market mutual funds, depository institutions, and foreign banks and market debt of the U.S. government, state and local governments, and private official institutions. nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- NOTE: Latest monthly and weekly figures are available from the Board's H.6 sumer credit (including bank loans), other bank loans, commercial paper, bankers (508) release. Historical data are available from the Banking Section, Division of acceptances, and other debt instruments. The source of data on domestic Research and Statistics, Board of Governors of the Federal Reserve System, nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt Washington, D.C. 20551. data are on an end-of-month basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 1.22 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1984 June July Aug. Sept. Oct. Nov. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 80,858.7 90,914.4 109,642.3 121,488.2 128,299.3 128,141.9 124,117.4 142,907.3 134,016.3 2 Major New York City banks 34,108.1 37,932.9 47,769.4 53,147.7 55,340.6 57,096.5 55,591.4 67,488.7 60,992.8 3 Other banks 46,966.5 52,981.5 61,873.1 68,340.4 72,958.7 71,045.4 68,526.0 75,418.5 73,023.5 4 ATS-NOW accounts3 761.0 1,036.2 1,405.5 1,515.8 1,658.9 1,851.9 1,640.6 1,698.6 1,678.5 5 Savings deposits4 679.6 720.3 741.4 677.9 682.4 694.5 566.8 597.2 579.1 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 285.8 324.2 379.7 401.8 433.0 436.7 424.5 486.8 448.2 7 Major New York City banks 1,116.7 1,287.6 1,528.0 1,665.2 1,774.3 1,834.6 1,822.5 2,199.6 1,917.5 8 Other banks 185.9 211.1 240.9 252.7 275.2 270.9 261.7 286.9 273.3 9 ATS-NOW accounts3 14.4 14.5 15.6 15.1 16.6 18.3 16.2 16.9 16.5 10 Savings deposits4 4.1 4.5 5.4 5.4 5.5 5.6 4.6 4.9 4.7 DEBITS TO Not seasonally adjusted Demand deposits2 11 All insured banks 81,197.9 91,031.8 109,517.6 128,522.3 124,604.3 133,844.2 120,120.8 141,249.5 131,791.6 12 Major New York City banks 34,032.0 38,001.0 47,707.4 57,168.1 54,060.5 59,743.8 54,329.0 64,790.2 61,148.7 13 Other banks 47,165.9 53,030.9 64,310.2 71,354.3 70,543.8 74,100.3 65,791.8 76,459.2 70,643.0 14 ATS-NOW accounts3 737.6 1,027.1 1,397.0 1,621.7 1,598.5 1,629.4 1,523.7 1,665.7 1,524.8 15 MMDA5 567.4 894.8 891.7 888.2 821.6 901.1 819.7 16 Savings deposits4 672.9 720.0 742.0 686.2 686.3 680.3 543.1 616.2 538.7 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 286.4 325.0 379.9 428.6 418.1 465.7 408.9 479.9 438.8 18 Major New York City banks 1,114.2 1,295.7 1,510.0 1,792.0 1,738.1 2,008.0 1,786.4 2,120.7 1,944.6 19 Other banks 186.2 211.5 240.5 266.3 264.3 287.6 249.8 289.9 262.7 20 ATS-NOW accounts3 14.0 14.4 15.5 16.2 16.0 16.4 15.2 16.6 14.9 21 MMDA3 2.8 3.7 3.7 3.7 3.4 3.7 3.2 22 Savings deposits4 4.1 4.5 5.4 5.5 5.4 5.5 4.5 5.1 4.4 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 These data also appear on the Board's G.6 (406) release. For address, see inside as Christmas and vacation clubs. front cover. 5. Money market deposit accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • March 1985 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1983 1984 CCaatteeggoorryy Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1111 TTTToooottttaaaallll llllooooaaaannnnssss aaaannnndddd sssseeeeccccuuuurrrriiiittttiiiieeeessss2222 1,553.0 1.584.1 1,599.6 1,612.9 1,629.8 1,636.6 1.652.6 1,662.1 1,674.9 1,683.0 1,700.9 1,713.6 2222 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss 260.8 260.7 261.0 257.6 257.3 253.7 256.4 257.1 258.0 257.0 259.4 260.2 3333 OOOOtttthhhheeeerrrr sssseeeeccccuuuurrrriiiittttiiiieeeessss3333 169.6 142.2 142.3 142.1 140.5 139.7 139.5 140.8 141.9 141.5 141.6 140.3 4444 TTTToooottttaaaallll llllooooaaaannnnssss aaaannnndddd lllleeeeaaaasssseeeessss2222 3333 1,122.7 1.181.2 1,196.3 1,213.2 1,232.0 1,243.2 1.256.7 1,264.2 1,275.0 1,284.5 1,299.9 1,313.1 5 6 5 6 5 6 5 6 CCCCoooo BBBB mmmm aaaa mmmm nnnnkkkk eeee eeee rrrrcccc rrrrssss iiii aaaallll aaaa cccc aaaa cccc nnnn eeee dddd pppp tttt iiii aaaa nnnn nnnn dddd cccc uuuu eeee ssss ssss tttt rrrriiii hhhh aaaa eeee llll lllldddd4444........ 41 6 2 . . 4 8 42 5 1 . . 4 7 43 5 2. . 2 6 43 5 8. . 5 2 44 5 8. . 0 8 45 5 2. . 2 8 45 6 5 . . 5 0 458 6 . . 1 1 460 5. . 7 0 46 5 3 . . 9 9 469 6 . . 5 2 46 5 9 . . 4 9 7777 OOOOtttthhhheeeerrrr ccccoooommmmmmmmeeeerrrrcccciiiiaaaallll aaaannnndddd iiiinnnndddduuuussssttttrrrriiiiaaaallll 406.4 416.4 426.6 433.2 442.2 446.3 448.5 451.9 454.3 458.0 463.3 464.5 8888 UUUU....SSSS.... aaaaddddddddrrrreeeesssssssseeeeeeeessss5555 394.7 404.2 414.3 420.8 430.2 434.7 436.8 440.3 443.2 447.4 453.0 454.9 9999 NNNNoooonnnn----UUUU....SSSS.... aaaaddddddddrrrreeeesssssssseeeeeeeessss5555................ 11.7 12.2 12.3 12.4 12.0 11.7 11.6 11.6 11.1 10.6 10.3 9.6 11110000 RRRReeeeaaaallll eeeessssttttaaaatttteeee 331.0 338.5 342.9 347.2 350.7 354.7 358.3 361.2 364.8 367.7 371.3 374.8 11111111 IIIInnnnddddiiiivvvviiiidddduuuuaaaallll 213.1 218.1 221.1 224.9 229.0 233.0 236.3 238.5 241.3 243.5 246.8 251.0 11112222 SSSSeeeeccccuuuurrrriiiittttyyyy 26.9 33.7 29.5 29.6 30.1 28.5 28.0 26.1 28.8 30.3 30.2 31.4 11113333 NNNNoooonnnnbbbbaaaannnnkkkk ffffiiiinnnnaaaannnncccciiiiaaaallll iiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnssss 31.0 30.6 30.3 30.6 31.4 31.4 31.4 30.9 31.3 31.2 31.2 31.5 11114444 AAAAggggrrrriiiiccccuuuullllttttuuuurrrraaaallll 39.2 39.7 40.0 40.1 40.3 40.5 40.6 40.5 40.7 40.8 41.0 41.4 11115555 SSSSttttaaaatttteeee aaaannnndddd ppppoooolllliiiittttiiiiccccaaaallll ssssuuuubbbbddddiiiivvvviiiissssiiiioooonnnnssss 3.2 34.6 35.5 36.7 37.4 38.7 40.1 40.9 41.5 41.0 41.8 43.7 11116666 FFFFoooorrrreeeeiiiiggggnnnn bbbbaaaannnnkkkkssss 13.0 13.4 12.8 12.7 12.3 12.3 12.2 12.0 11.5 11.4 11.7 11.4 11117777 FFFFoooorrrreeeeiiiiggggnnnn ooooffffffffiiiicccciiiiaaaallll iiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnssss ............ 9.5 9.0 9.1 8.9 8.9 8.9 9.3 9.4 9.0 8.6 8.1 7.7 11118888 LLLLeeeeaaaasssseeee ffffiiiinnnnaaaannnncccciiiinnnngggg rrrreeeecccceeeeiiiivvvvaaaabbbblllleeeessss............ 13.7 13.8 13.8 14.0 14.1 14.3 14.5 14.8 15.0 15.1 15.2 15.4 11119999 AAAAllllllll ooootttthhhheeeerrrr llllooooaaaannnnssss 32.3 28.1 29.1 30.1 29.7 28.9 31.0 31.9 31.3 31.2 33.1 34.8 Not seasonally adjusted 22220000 TTTToooottttaaaallll llllooooaaaannnnssss aaaannnndddd sssseeeeccccuuuurrrriiiittttiiiieeeessss2222 1,562.8 1,582.5 1,596.5 1,613.7 1,626.6 1,637.6 1,646.7 1.656.1 1,673.3 1.684.1 1,701.8 1,724.6 2 2 2 2 2 2 2 2 2 2 2 2 1 2 3 1 2 3 1 2 3 1 2 3 TTTT OOOO UUUU oooo tttt .... hhhh SSSS ttttaaaa eeee .... llll rrrr gggg llll ssss oooo oooo eeee aaaa vvvv cccc nnnn eeee uuuu ssss rrrr rrrr nnnn iiii aaaa mmmm tttt nnnn iiiieeee dddd eeee ssss nnnn 3333 llll tttt eeeeaaaa sssseeee ssss cccc eeee uuuu ssss2222 rrrr iiii 3333 tttt iiiieeeessss 1,1 2 1 3 5 7 3 7 1 . . . 5 7 5 1,1 2 1 7 6 4 8 1 2 . . . 5 4 6 1,1 2 1 9 6 4 0 3 2 . . . 9 1 5 1,2 2 1 0 6 4 9 3 1 . . . 0 0 8 1,2 2 1 2 4 5 1 6 9 . . . 1 1 4 1,2 2 1 4 5 3 1 7 9 . . . 0 2 4 1,2 2 1 5 5 3 2 6 8 . . . 4 2 2 1.2 2 1 6 5 4 0 5 0 . . . 2 5 4 1,2 2 1 7 5 4 6 5 1 . . . 3 8 3 1.2 2 1 8 5 4 9 4 0 . . . 2 1 9 1, 2 3 1 0 5 4 4 5 1 . . . 8 3 7 1,3 2 1 2 5 4 5 6 1 . . . 8 9 9 2 2 2 2 2 2 2 2 2222 5 6 5 6 5 6 5 6 4444 CCCCoooo OOOO BBBB mmmm aaaa tttt mmmm hhhh nnnn eeee kkkk eeee rrrr eeee rrrr cccc rrrr cccc ssss iiii oooo aaaa mmmm aaaa llll cccc mmmm aaaa cccc nnnn eeee eeee dddd pppp rrrr cccc tttt iiii aaaa iiiiaaaa nnnn nnnn llll dddd cccc eeee uuuu aaaa ssss nnnn ssss dddd tttt hhhh rrrr iiii eeee aaaa llll llll dddd .... 4444 .... .... .... .... .... 415 6 . . 5 9 42 5 1 . . 3 3 43 5 1 . . 5 8 43 5 8. . 7 3 44 5 6 . . 7 8 450 6 . . 9 0 45 6 4 . . 4 3 456 5 . . 1 9 459 5 . . 9 6 464 5 . . 7 8 46 6 9 . . 1 8 47 5 3 . . 8 0 2 2 2 2 2 2 2 2 7 8 7 8 7 8 7 8 NNNN UUUU oooo .... iiii SSSS nnnn nnnn .... dddd ---- UUUU uuuu aaaadddd ssss .... tttt SSSS dddd rrrr .... rrrr iiii aaaa eeee llll aaaa ssss ssss dddd eeee dddd eeee rrrr ssss eeee 5555 sssssssseeeeeeeessss5555................ 4 39 0 1 6 8 2 . . . 2 6 5 4 40 1 1 4 6 1 . . . 3 0 7 4 41 2 1 4 6 1 . . . 4 3 8 4 4 2 3 1 1 3 1 . . . 7 4 7 4 42 4 1 9 1 1 . . . 5 0 6 4 43 4 1 3 4 1 . . . 5 8 3 4 43 4 1 6 7 1 . . . 2 9 7 4 4 5 3 1 0 8 1 . . . 1 5 6 4 4 5 4 1 4 3 1 . . . 3 0 3 4 44 5 1 7 9 1 . . . 9 0 1 4 4 6 5 1 3 2 1 . . . 7 7 0 4 4 6 5 1 7 6 0 . . . 1 6 6 22229999 RRRReeeeaaaallll eeeessssttttaaaatttteeee 331.6 338.1 341.9 346.0 349.8 354.1 357.7 361.4 365.9 368.9 372.3 375.4 33330000 IIIInnnnddddiiiivvvviiiidddduuuuaaaallll 215.7 217.8 219.3 222.9 227.2 231.3 234.7 238.3 242.4 245.3 248.5 254.1 33331111 SSSSeeeeccccuuuurrrriiiittttyyyy 30.1 32.7 29.0 29.5 28.9 28.5 26.6 25.4 27.7 30.1 31.7 35.2 33332222 NNNNoooonnnnbbbbaaaannnnkkkk ffffiiiinnnnaaaannnncccciiiiaaaallll 33333333 AAAAggggrrrriiiicccc iiiinnnn uuuu ssss llll tttt tttt iiii uuuu tttt rrrr uuuu aaaa tttt llll iiii oooonnnnssss 3 3 1 8 . . 2 9 3 3 0 8 . . 5 9 3 3 0 9 . . 3 0 3 3 0 9 . . 7 4 4 3 0 1 . . 2 2 4 3 0 1 . . 9 4 4 3 1 1 . . 4 5 4 3 1 1 . . 4 0 4 3 1 1 . . 5 4 4 3 1 1 . . 4 1 4 3 1 1 . . 1 1 4 3 1 1 . . 0 6 33334444 SSSSttttaaaatttteeee aaaannnndddd ppppoooolllliiiittttiiiiccccaaaallll ssssuuuubbbbddddiiiivvvviiiissssiiiioooonnnnssss 3.2 34.6 35.5 36.7 37.4 38.7 40.1 40.9 41.5 41.0 41.8 43.7 33335555 FFFFoooorrrreeeeiiiiggggnnnn bbbbaaaannnnkkkkssss 13.8 13.4 12.6 12.3 12.0 11.8 12.0 11.7 11.7 11.8 12.0 12.0 33336666 FFFFoooorrrreeeeiiiiggggnnnn ooooffffffffiiiicccciiiiaaaallll iiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnssss ............ 9.5 9.0 9.1 8.9 8.9 8.9 9.3 9.4 9.0 8.6 8.1 7.7 33337777 LLLLeeeeaaaasssseeee ffffiiiinnnnaaaannnncccciiiinnnngggg rrrreeeecccceeeeiiiivvvvaaaabbbblllleeeessss............ 13.7 13.9 14.0 14.0 14.1 14.3 14.4 14.7 14.9 15.0 15.1 15.4 33338888 AAAAllllllll ooootttthhhheeeerrrr llllooooaaaannnnssss 30.3 28.2 28.4 29.7 29.7 30.3 30.5 29.9 30.7 31.4 33.2 36.7 1. Data are prorated averages of Wednesday estimates for domestically char- 2. Excludes loans to commercial banks in the United States. tered insured banks, based on weekly sample reports and quarterly universe 3. Beginning January 1984 the amount of loans to states and political subdivireports. For foreign-related institutions, data are averages of month-end estimates sions is included in total loans and leases but not included in other securities. based on weekly reports from large U.S. agencies and branches and quarterly 4. Includes nonfinancial commercial paper held. reports from all U.S. agencies and branches, New York investment companies 5. United States includes the 50 states and the District of Columbia. majority owned by foreign banks, and Edge Act corporations owned by domesti- NOTE. These data also appear in the Board's G.7 (407) release. For address, see cally chartered and foreign banks. inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1982 1983 1984 SSoouurrccee Dec. Dec. Feb. Mar. Apr. May June July Aug. Sept/ Oct/ Nov/ Dec. Total nondeposit funds 1 Seasonally adjusted2 96.3 100.3 103.7 108.1 111.8 116.9 105.5 106.1 109.8 111122..99 111155..44 112211..11 111155..55 2 Not seasonally adjusted 99.6 102.5 105.2 109.6 113.0 121.2 108.4 106.5 112.4 113.7 116.3 124.7 117.8 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 140.8 140.7 142.8 141.9 142.3 142.4 136.8 137.5 142.7 114455..00 114455..88 115511..22 114444..55 4 Not seasonally adjusted 144.1 142.8 144.3 143.3 143.5 146.7 139.6 137.8 145.3 145.8 146.8 154.8 146.8 5 Net balances due to foreign-related institutions, not seasonally adjusted -47.0 -42.7 -41.6 -36.9 -33.6 -28.4 -33.9 --3344..22 --3355..88 --3355..11 --3333..44 --3333..00 --3311..99 6 Loans sold to affiliates, not seasonally adjusted4 2.5 2.4 2.5 3.1 3.1 2.8 2.7 2.9 2.9 33..00 22..99 22..99 22..99 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -43.0 -39.8 -37.7 -34.9 -33.2 -29.9 -32.9 -33.1 --3355..00 --3355..22 --3344..22 --3322..66 --3311..33 8 Gross due from balances 76.5 75.3 72.2 73.8 73.6 73.5 73.8 71.2 72.8 71.5 69.8 68.3 69.0 9 Gross due to balances 33.6 35.5 34.5 38.9 40.4 43.6 40.9 38.1 37.8 36.3 35.7 35.7 37.7 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 -4.0 -3.0 -3.9 -1.9 -0.4 1.6 -1.0 -1.1 -0.8 00..11 00..77 --00..44 --00..66 11 Gross due from balances 53.5 54.1 51.3 50.2 49.6 49.8 50.8 52.0 51.8 51.7 50.8 50.7 51.9 12 Gross due to balances 49.5 51.1 47.3 48.3 49.2 51.4 49.8 50.9 51.0 51.8 51.5 50.4 51.3 Security RP borrowings 13 Seasonally adjusted' 83.3 84.8 86.9 85.5 86.9 84.0 79.0 79.9 8822..77 8844..22 8855..99 8899..66 8844..55 14 Not seasonally adjusted 84.6 85.1 86.5 85.1 86.2 86.4 80.0 78.4 83.4 83.1 84.9 91.3 84.9 U.S. Treasury demand balances8 15 Seasonally adjusted 12.0 13.1 20.6 16.7 15.9 12.2 12.9 11.7 12.7 1166..55 8.3 1177..00 1155..44 16 Not seasonally adjusted 7.5 10.8 22.3 17.5 16.5 12.8 12.3 11.8 10.3 17.5 11.0 10.4 12.5 Time deposits, $100,000 or more9 17 Seasonally adjusted 280.7 283.1 283.8 289.2 292.4 302.9 312.8 315.8 313.4 331122..88 331177..99 331188..44 331199..88 18 Not seasonally adjusted 283.0 288.1 285.0 288.8 288.7 298.8 307.7 311.7 314.3 315.4 320.6 321.1 325.3 1. Commercial banks are those in the 50 states and the District of Columbia banks and averages of current and previous month-end data for foreign-related with national or state charters plus agencies and branches of foreign banks, New institutions. York investment companies majority owned by foreign banks, and Edge Act 4. Loans initially booked by the bank and later sold to affiliates that are still corporations owned by domestically chartered and foreign banks. held by affiliates. Averages of Wednesday data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 5. Averages of daily figures for member and nonmember banks. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. 6. Averages of daily data. Includes averages of Wednesday data for domestically chartered banks and 7. Based on daily average data reported by 122 large banks. averages of current and previous month-end data for foreign-related institutions. 8. Includc U.S. Treasury demand deposits and Treasury tax-and-loan notes at 3. Other borrowings are borrowings on any instrument, such as a promissory commercial banks. Averages of daily data. note or due bill, given for the purpose of borrowing money for the banking 9. Averages of Wednesday figures. business. This includes borrowings from Federal Reserve Banks and from foreign NOTE. These data also appear in the Board's G. 10 (411) release. For address see banks, term federal funds, overdrawn due from bank balances, loan RPs, and inside front cover. participations in pooled loans. Includes averages of daily figures for member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • March 1985 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1983 1984 Apr. May June July Aug. Sept. Oct. ALL COMMERCIAL BANKING INSTITUTIONS' 1 Loans and securities 1,680.62 1,712.8 1,734.1 1,756.9 1,764.1 1.765.3 1,784.5 1,798.9 1.822.7 1,821.8' 2 Investment securities n.a. 387.8 385.5 382.0 381.2 378.2 376.2 377.3 375.2 374.9 3 U.S. government securities n.a. 251.3 251.0 247.7 248.2 246.5 243.5 243.5 241.2 240.4 4 Other n.a. 136.5 134.5 134.4 133.0 131.7 132.7 133.8 134.0 134.4 5 Trading account assets n.a. 17.0 19.9 18.8 14.6 15.7 20.0 20.9 22.5 21.9 6 Total loans 1.249.32 1,308.0 1,328.7 1,356.1 1,368.3 1.371.4 1.388.4 1,400.6 1,424.9 1,425.0* 7 Interbank loans 111.42 115.0 116.7 124.7 122.8 118.6 127.1 123.3 126.1 122.5s 8 Loans excluding interbank 1,137.92 1,193.0 1,212.0 1.231.4 1,245.5 1,252.8 1,261.2 1,277.3 1.298.8 1,302.5" 9 Commercial and industrial 419.4 433.1 439.7 447.3 452.9 454.4 455.2 459.9 467.7 469.3 10 Real estate 327.2 342.3 346.8 350.3 354.6 356.8 361.8 366.7 369.8 372.8' 11 Individual 217.4 219.8 224.1 228.4 232.8 235.2 240.0 243.4 247.1 249.8' 12 All other 173.92 197.8 201.3 205.4 205.2 206.5 204.2 207.3 214.2 210.6 13 Total cash assets 219.6 181.8 190.5 202.5 185.6 179.1 177.3 176.0 188.0 188.9 14 Reserves with Federal Reserve Banks 23.5 16.3 22.2 18.6 19.1 19.4 17.4 .8 18.1 20.4 15 Cash in vault 23.4 20.7 21.2 22.3 21.8 21.6 22.2 21.6 21.4 23.9 16 Cash items in process of collection ... 73.2 62.3 65.9 76.4 63.7 60.2 60.7 63.2 70.2 66.5 17 Demand balances at U.S. depository institutions 31.7 30.0 34.8 30.8 29.3 29.5 31.2 32.0 31.0 18 Other cash assets 51.2 50.4 50.1 48.6 47.5 50.8 59.3 46.3 47.1 19 Other assets 193.6 200.1 205.4 204.7 204.1 215.3 215.7 204.4' 20 Total assets/total liabilities and capital ... 2.093.8 2,128.6 2.159.5 2,155.5 2,149.7 2.166.5 2,098.7 2,190.2 2,226.3 2,215.3 2 2 1 2 De T p r o a s n i s ts a ction deposits 1. 3 5 7 0 4 8. . 9 6 2 1,494.5 1, 4 5 4 0 7 1. . 5 3 1, 4 5 6 4 2 1 . . 6 3 1, 4 5 4 3 5 2 . . 9 9 1. 4 5 4 3 1 5 . . 4 5 1, 4 5 4 3 0 9 . . 0 0 1, 4 5 4 4 2 9 . . 3 9 1. 4 5 6 7 2 8 . . 7 9 1, 4 5 5 7 3 8 . . 0 2 23 Savings deposits 457.22 440.9 369.6 371.6 369.5 368.5 365.1 364.9 371.1 378.2 24 Time deposits 677.1 371.4 684.5 707.2 717.4 725.6 734.0 742.7 745.0 747.0 25 Borrowings 273.22 682.2 305.9 292.8 292.8 292.0 301.5 307.1 314.3 298.0 26 Other liabilities 164.42 289.2 181.6 187.8 187.9 182.0 183.8 187.0 189.2 194.3 27 Residual (assets less liabilities) 147.32 176.3 139.6 137.6 141.9 140.2 142.1 146.2 144.0 144.8 138.8 MEMO 28 U.S. government securities (including trading account) 254.I2 262.4 263.0 260.1 256.5 255.6 255.1 255.5 256.3 255.2 29 Other securities (including trading account) 177.22 142.5 142.4 140.7 139.3 138.3 141.0 142.7 141.5 141.6 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 1.591.32 1,619.0 1,642.8 1,663.2 1.671.0 1.676.7 1,688.4 1,708.0 1,728.5 1.726.6 31 Investment securities n.a. 381.1 378.7 375.3 374.5 371.2 369.1 370.0 367.9 368.0 32 U.S. government securities n.a. 246.2 245.8 242.5 243.1 241.4 238.5 238.5 236.1 235.9 33 Other n.a. 135.0 132.9 132.8 131.4 129.8 130.7 131.5 131.8 132.2 34 Trading account assets n.a. 17.0 19.9 18.8 14.6 15.7 20.0 20.9 22.5 21.9 35 Total loans 1,167.42 1,220.8 1,244.3 1,269.2 1,281.8 1.289.8 1,299.4 1.317.0 1.338.0 1.336.7 36 Interbank loans 87.02 86.8 90.0 96.2 94.7 95.2 97.6 100.0 103.3 96.4 37 Loans excluding interbank 1,080.42 1,134.0 1,154.3 1,172.9 1.187.1 1,194.6 1,201.8 1.217.1 1,234.7 1.240.3 38 Commercial and industrial 381.32 392.7 400.0 407.4 412.9 414.0 414.5 418.8 423.0 425.5 39 Real estate 327.2 337.6 342.2 346.1 350.5 353.1 358.0 362.4 365.5 368.5 40 Individual 217.4 219.6 224.0 228.3 232.6 235.1 239.8 243.2 246.9 249.6 41 All other 154.62 184.0 188.1 191.1 191.1 192.4 189.6 192.6 199.3 196.7 42 Total cash assets 207.0 169.5 177.9 190.7 173.2 166.7 165.9 164.0 176.6 176.9 43 Reserves with Federal Reserve Banks 19.9 15.8 21.5 17.4 18.4 18.0 16.7 .1 17.1 19.7 44 Cash in vault 23.4 20.7 21.2 22.3 21.8 21.6 22.2 21.6 21.4 23.9 45 Cash items in process of collection ... 73.0 62.2 65.8 76.3 63.5 60.1 60.5 63.0 69.9 66.3 46 Demand balances at U.S. depository 47 Othe i r n c st a i s t h u ti a o s n s s e ts 90.8 30.0 4 2 0 8. . 6 9 4 3 1 3 . . 3 5 4 2 0 9 . . 1 4 2 39 7 . . 2 9 2 3 8 8 . . 2 3 4 2 9 9 . . 6 7 30.7 3 2 7 9 . . 5 5 40.9 37.5 48 Other assets 150.4 139.0 138.9 140.6 145.6 139.8 145.7 147.9 49 Total assets/total liabilities and capital ... 1,948.7 1,964.3 1,992.9 1,985.7 1.982.3 1,995.0 2,017.6 2.043.4 1,934.2 2.053.1 50 Deposits 1,468.1 1,456.4 1,464.9 1,501.7 1,492.5 1.495.4 1,500.3 1,510.9 1,539.1 1,538.0 51 Transaction deposits 368.52 434.5 441.1 456.2 439.6 434.8 433.7 435.9 456.2 446.8 52 Savings deposits 456.62 370.5 368.7 370.7 368.6 367.5 364.2 363.9 370.1 377.2 53 Time deposits 643.0 651.4 655.1 674.9 684.3 693.1 702.4 711.1 712.8 714.0 54 Borrowings 214.12 227.2 241.9 232.5 229.6 228.0 236.0 243.5 251.3 241.1 55 Other liabilities 122.32 114.7 102.8 123.9 124.4 121.5 119.3 119.7 120.5 122.3 56 Residual (assets less liabilities) 144.12 136.0 136.8 134.8 139.1 137.4 139.3 143.4 142.1 142.0 1. Commercial banking institutions include insured domestically chartered NOTE. Figures are partly estimated. They include all bank-premises subsidiarcommercial banks, branches and agencies of foreign banks, Edge Act and ies and other significant majority-owned domestic subsidiaries. Loan and securi- Agreement corporations, and New York State foreign investment corporations. ties data for domestically chartered commercial banks are estimates for the last 2. Data are not comparable with those of later dates. See the Announcements Wednesday of the month based on a sample of weekly reporting banks and section of this BULLETIN for a description of the differences. quarter-end condition report data. Data for other banking institutions are esti- 3. Insured domestically chartered commercial banks include all member banks mates made for the last Wednesday of the month based on a weekly reporting and insured nonmember banks. sample of foreign-related institutions and quarter-end condition reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on December 31, 1982, Assets and Liabilities Millions of dollars, Wednesday figures 1984 1985 Adjustment bank, Nov. 21' Nov. 28' Dec. 5' Dec. 12' Dec. 19' Dec. 26 Jan. 2 Jan. 9 Jan. 16 1984 1 Cash and balances due from depository institutions .... 90,775 90,438 90,247 91,330 96,451 98,110 120,263 88,534 101,824 1,346 2 Total loans, leases and securities, net 799,849 791,976 808,829 799,995 815,385 815,847 832,316 822,035 826,627 7,714 3 U.S. Treasury and government agency 78,287 78,532 81,143 79,281 78,858 78,523 79,666 82,705 81,921 1,143 4 Trading account 14,599 14,762 16,592 14,886 14,561 14,328 13,828 15,873 14,810 2 5 Investment account, by maturity 63,688 63,770 64,551 64,394 64,298 64,196 65,838 66,832 67,112 1,141 6 One year or less 18,054 17,949 18,365 18,769 19,302 20,148 21,507 21,111 21,107 413 7 Over one through five years 33,151 33,186 32,966 32,377 31,651 30,706 30,792 32,124 32,418 612 8 Over five years 12,484 12,634 13,220 13,248 13,345 13,341 13,539 13,598 13,586 116 9 Other securities 47,160 46,464 46,140 46,384 47,046 48,294 50,117 49,337 48,996 771 10 Trading account 4,722 3,949 3,702 3,828 4,323 5,065 5,241 3,983 3,808 6 11 Investment account 42,438 42,515 42,437 42,555 42,723 43,228 44,876 45,354 45,188 765 12 States and political subdivisions, by maturity 38,332 38,302 38,203 38,319 38,328 38,815 40,314 40,859 40,659 683 13 One year or less 4,394 4,343 4,262 4,342 .4,413 4,710 5,096 5,508 5,400 159 14 Over one year 33,937 33,959 33,941 33,977 33,915 34,106 35,218 35,351 35,259 524 15 Other bonds, corporate stocks, and securities 4,106 4,213 4,234 4,236 4,395 4,413 4,562 4,494 4,529 82 16 Other trading account assets 3,602 3,211 2,908 2,875 2,655 3,448 3,024 3,201 2,726 17 Federal funds sold1 52,429 48,116 56,112 49,430 54,512 51,368 57,221 53,214 58,587 774 18 To commercial banks 36,056 32,647 37,955 32,158 37,912 34,627 41,045 36,085 42,422 770 19 To nonbank brokers and dealers in securities 11,888 10,681 12,033 11,947 11,674 11,809 10,954 11,813 11,121 5 20 To others 4,484 4,788 6,124 5,325 4,925 4,932 5,222 5,316 5,045 21 Other loans and leases, gross2 634,072 631,400 638,326 637,866 648,178 650,017 658,197 649,834 650,732 5,267 22 Other loans, gross2 621,737 619,030 625,892 625,449 635,674 637,443 645,338 637,013 637,914 5,248 23 Commercial and industrial2 249,288 248,445 249,809 248,560 250,690 251,344 253,360 250,571 251,138 1,493 24 Bankers acceptances and commercial paper 4,320 4,055 4,353 4,209 3,815 3,832 4,156 3,386 3,074 29 25 All other 244,968 244,390 245,456 244,351 246,875 247,512 249,204 247,185 248,063 1,464 26 U.S. addressees 238,632 238,041 239,105 238,110 240,627 241,326 243,028 241,382 242,365 1,368 27 Non-U.S. addressees 6,336 6,349 6,351 6,241 6,248 6,186 6,176 5,803 5,698 96 28 Real estate loans2 157,847 158,267 158,436 159,075 159,354 159,288 160,018 160,737 161,118 1,546 29 To individuals for personal expenditures 107,488 108,117 109,025 109,830 110,903 111,965 114,698 114,822 114,862 1,454 30 To depository and financial institutions 39,967 39,554 40,662 40,718 41,352 41,673 41,765 40,360 40,717 137 31 Commercial banks in the United States 9,452 9,286 9,562 9,798 10,129 10,387 9,969 9,665 9,995 65 32 Banks in foreign countries 6,313 6,082 6,740 6,357 6,165 6,098 6,301 5,832 6,033 56 33 Nonbank depository and other financial institutions . 24,202 24,186 24,359 24,563 25,058 25,187 25,495 24,864 24,689 16 34 For purchasing and carrying securities 14,371 12,616 15,117 15,072 19,178 17,092 18,018 16,376 15,498 6 35 To finance agricultural production 7,223 7,194 7,147 7,180 7,224 7,224 7,302 7,102 6,991 32 36 To states and political subdivisions 26,622 26,583 26,658 26,864 27,552 28,208 29,341 29,386 29,516 147 37 To foreign governments and official institutions .... 4,413 4,170 4,500 4,246 4,214 4,358 4,086 3,972 3,787 23 38 All other 14,518 14,084 14,537 13,904 15,208 16,290 16,748 13,685 14,286 410 39 Lease financing receivables 12,336 12,370 12,434 12,417 12,504 12,574 12,859 12,821 12,818 18 40 LESS: Unearned income 5,122 5,125 5,075 5,094 5,110 5,129 5,283 5,314 5,306 186 41 Loan and lease reserve2 10,579 10,624 10,725 10,747 10,754 10,672 10,626 10,942 11,029 56 42 Other loans and leases, net2 618,371 615,652 622,526 622,025 632,314 634,215 642,288 633,578 634,396 5,026 43 All other assets 132,489 131,943 138,408 132,843 134,871 132,855 140,891 135,005 134,652 957 44 Total assets 1,023,113 1,014,357 1,037,484 1,024,168 1,046,708 1,046,812 1,093,470 1,045,574 1,063,103 10,017 45 Demand deposits 180,975 180,276 191,332 185,369 193,914 201,145 226,133 185,406 198,983 2,357 46 Individuals, partnerships, and corporations 139,223 139,067 144,448 142,669 145,097 157,535 174,413 145,797 151,852 1,913 47 States and political subdivisions 5,072 4,781 4,877 4,742 5,458 5,142 6,328 4,850 5,384 108 48 U.S. government 1,423 1,041 3,778 2,375 3,686 1,176 1,210 1,603 3,768 51 49 Depository institutions in United States 20,472 20,985 22,181 20,588 22,636 21,544 26,424 19,232 22,173 119 50 Banks in foreign countries 6,225 6,097 6,488 6,140 6,496 5,918 7,004 5,738 6,026 90 51 Foreign governments and official institutions 916 805 906 978 744 666 864 789 799 15 52 Certified and officers'checks 7,645 7,500 8,653 7,878 9,797 9,164 9,889 7,397 8,980 61 53 Transaction balances other than demand deposits 33,135 32,668 34,870 34,136 34,309 34,317 37,272 37,144 36,784 1,045 54 Nontransaction balances 446,231 446,042 449,021 449,377 452,315 453,547 461,124 461,014 460,160 4,921 55 Individuals, partnerships and corporations 412,242 412,111 415,355 415,232 417,708 418,623 427,209 427,072 426,452 4,772 56 States and political subdivisions 21,337 21,393 21,150 21,387 21,751 21,983 21,228 21,538 21,523 96 57 U.S. government 497 473 378 391 407 418 421 439 442 2 58 Depository institutions in the United States 8,735 8,652 8,495 8,748 8,876 8,938 8,795 8,758 8,529 51 59 Foreign governments, official institutions and banks .. 3,419 3,412 3,643 3,620 3,573 3,584 3,472 3,207 3,213 60 Liabilities for borrowed money 199,370 190,909 197,000 188,767 198,408 192,413 202,960 196,158 199,771 632 61 Borrowings from Federal Reserve Banks 6,328 3,250 4,810 2,910 3,300 2,130 5,577 1,265 846 62 Treasury tax-and-loan notes 4,582 3,460 2,643 1,871 11,280 10,212 8,162 8,155 10,278 63 All other liabilities for borrowed money3 188,460 184,199 189,547 183,986 183,828 180,071 189,221 186,738 188,646 632 64 Other liabilities and subordinated note and debentures 93,378 94,693 94,613 95,958 97,320 95,080 93,570 93,574 95,067 345 65 Total liabilities 953,090 944,588 966,836 953,606 976,267 976,501 1,021,058 973,297 990,764 9,300 66 Residual (total assets minus total liabilities)4 70,024 69,769 70,647 70,562 70,441 70,311 72,412 72,278 72,339 717 MEMO 67 Total loans and leases (gross) and investments adjusted5 770,042 765,791 777,111 773,879 783,208 786,635 797,211 792,541 790,546 7,121 68 Total loans and leases (gross) adjusted2'5 640,993 637,583 646,920 645,340 654,649 656,370 664,404 657,298 656,903 5,207 69 Time deposits in amounts of $100,000 or more 159,097 158,379 158,660 159,057 160,668 161,114 160,518 159,792 157,973 582 70 Loans sold outright to affiliates—total6 2,987 2,953 2,874 2,880 2,883 2,946 3,026 2,983 2,933 -10 71 Commercial and industrial 2,145 2,090 2,064 2,020 2,031 2,054 2,076 1,991 1,959 72 Other 842 863 811 860 851 892 950 992 975 -10 73 Nontransaction savings deposits (including MMDAs)... 158,885 159,366 161,746 161,790 163,142 164,134 169,965 170,823 171,860 2,415 1. Includes securities purchased under agreements to resell. 5. Exclusive of loans and federal funds transactions with domestic commercial 2. Levels of major loan items were affected by the Sept. 26, 1984 transaction banks. between Continental Illinois National Bank and the Federal Deposit Insurance 6. Loans sold are those sold outright to a bank's own foreign branches, Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if 3. Includes federal funds purchased and securities sold under agreements to not a bank), and nonconsolidated nonbank subsidiaries of the holding company. repurchase; for information on these liabilities at banks with assets of $1 billion or NOTE. These data also appear in the Board's H.4.2 (504) release. For address, more on Dec. 31, 1977, see table 1.13. see inside front cover. 4. This is not a measure of equity capital for use in capital adequacy analysis or for other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • March 1985 1,28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1984 1985 Adjustbank, Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19' Dec. 26 Jan. 2 Jan. 9 Jan. 16 1984 1 Cash and balances due from depository institutions ... 20,576 22,724 22,918' 23,222' 24,290 26,682 36,249 20,964 26,592 -3 2 Total loans, leases and securities, net1 171,040 168,329 172,836 170,015 176,606 175,482 174,932 169,674 173,808 -844 Securities 3 U.S. Treasury and government agency2 4 Trading account2 5 Investment account, by maturity 9,420 9,200 10,057 9,878 9,604 9,679 9,296 9,913 9,769 6 One year or less 1,500 1,496 1,522 1,761 1,985 2,533 2,590 2,345 1,963 7 Over one through five years 6,684 6,445 6,517 6,121 5,550 5,085 4,667 5,482 5,708 8 Over five years 1,236 1,259 2,017 1,996 2,068 2,061 2,039 2,086 2,097 9 Other securities2 10 Trading account2 11 Investment account 9,180 9,142 9,155 9,189 9,179 9,327 9,790 9,860 9,863 -44 12 States and political subdivisions, by maturity 8,410 8,338 8,334 8,340 8,344 8,467 8,946 9,033 9,030 -44 13 One year or less 1,198 1,124 1,120 1,114 1,150 1,239 1,305 1,348 1,302 -44 14 Over one year 7,212 7,214 7,214 7,226 7,195 7,228 7,642 7,685 7,728 15 Other bonds, corporate stocks and securities 770 804 821 849 834 860 844 828 833 16 Other trading account assets2 Loans and leases 17 Federal funds sold3 18,956 18,520 19,087 18,097 20,166 19,329 20,554 18,367 21,986 18 To commercial banks 10,516 10,052 9,299 9,426 11,067 9,794 11,916 8,988 12,842 19 To nonbank brokers and dealers in securities 5,992 5,478 6,283 6,033 6,198 6,622 5,748 6,494 6,153 20 To others 2,448 2,990 3,505 2,638 2,901 2,912 2,890 2,885 2,991 21 Other loans and leases, gross 138,209 136,204 139,286 137,599 142,423 141,863 139,907 136,314 136,969 -800 22 Other loans, gross 136,033 134,006 137,092 135,409 140,228 139,655 137,691 134,226 134,882 -800 23 Commercial and industrial 63,794 63,456 64,033 63,109' 63,735 63,638 62,650 62,361 62,864 -692 24 Bankers acceptances and commercial paper 679 633 685 481 429 454 660 638 661 25 All other 63,116 62,823 63,348 62,628' 63,306 63,183 61,990 61,724 62,203 -692 26 U.S. addressees 62,029 61,761 62,275 61,6^ 62,293 62,180 61,242 60,994 61,543 -692 27 Non-U.S. addressees 1,087 1,062 1,073 1,012 1,013 1,003 747 729 660 28 Real estate loans 23,853 23,891 23,974 24,318 24,239 24,346 24,451 24,465 24,446 66 29 To individuals for personal expenditures 15,619 15,669 15,810 15,931 16,087 16,234 16,226 16,134 16,079 -95 30 To depository and financial institutions 12,195 12,113 12,776 11,997 12,216 12,866 12,313 11,221 11,441 31 Commercial banks in the United States 1,869 1,968 2,076 1,785 1,653 2,468 2,189 1,794 2,060 32 Banks in foreign countries 2,332 2,225 2,690 2,312 2,291 2,161 2,258 1,973 2,123 33 Nonbank depository and other financial institutions 7,994 7,920 8,010 7,901 8,271 8,237 7,866 7,454 7,258 34 For purchasing and carrying securities 7,464 6,080 7,478 7,380 10,376 8,035 8,312 7,286 6,858 -1 35 To finance agricultural production 374 391 384 389 385 403 358 359 390 -20 36 To states and political subdivisions 7,910 7,808 7,927 7,925 8,101 8,166 8,193 8,161 8,223 -11 37 To foreign governments and official institutions ... 948 760 992 789 748 884 873 792 813 38 All other 3,877 3,838 3,718 3,569' 4,342 5,083 4,315 3,446 3,768 -47 39 Lease financing receivables 2,176 2,198 2,194 2,190 2,195 2,207 2,216 2,088 2,087 40 LESS: Unearned income 1,483 1,484 1,458 1,465 1,478 1,484 1,461 1,482 1,491 41 Loan and lease reserve 3,243 3,252 3,290 3,283 3,289 3,231 3,154 3,298 3,287 42 Other loans and leases, net 133,483 131,467 134,538 132,851 137,656 137,147 135,292 131,533 132,190 -800 43 All other assets4 66,594 67,484 72,459 66,639 69,324 69,653 73,798 69,802 68,291 -297 44 Total assets 258,210 258,538 268,214' 259,876' 270,221 271,817 284,979 260,440 268,692 -1,144 Deposits 45 Demand deposits 44,528 47,117 49,011 47,353 50,966 53,846 63,772 45,830 50,750 -118 46 Individuals, partnerships, and corporations 30,555 32,146 32,731 32,026 33,498 37,652 45,175 33,522 34,775 -103 47 States and political subdivisions 772 699 791 701 770 864 979 811 1,032 -18 48 U.S. government 207 167 780 501 683 140 127 204 731 1 49 Depository institutions in the United States 4,304 5,432 4,629 4,795 5,213 5,551 7,434 3,725 5,101 50 Banks in foreign countries 4,990 4,742 5,194 4,839 5,262 4,644 5,390 4,365 4,584 51 Foreign governments and official institutions 673 502 706 765 558 493 654 545 564 52 Certified and officers' checks 3,025 3,428 4,179 3,726 4,981 4,503 4,012 2,658 3,962 2 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers) . 3,556 3,520 3,723 3,678 3,711 3,718 3,975 3,981 3,967 45 54 Nontransaction balances 82,842 82,283 83,533' 82,940' 83,852 84,088 85,692 85,363 85,300 46 55 Individuals, partnerships and corporations 74,312' 73,830 74,775' 74,084' 74,926 75,024 77,344 77,247 77,326 334 56 States and political subdivisions 4,044' 3,960 4,109 4,176 4,326 4,374 3,893 3,836 3,792 -288 57 U.S. government 68 30 37 50 46 51 53 52 59 58 Depository institutions in the United States 2,444r 2,497 2,460 2,533 2,523 2,619 2,465 2,480 2,391 59 Foreign governments, official institutions and banks . 1,973' 1,967 2,153 2,097 2,030 2,019 1,937 1,747 1,731 60 Liabilities for borrowed money 63,462 61,497 66,875 60,766 65,959 66,260 68,319 61,640 6633,,333399 -422 61 Borrowings from Federal Reserve Banks 2,325 1,375 2,225 1,700 62 Treasury tax-and-loan notes 1,029 796 644 366 2,961 2,650 2,013 2,216 2,658 63 All other liabilities for borrowed money5 60,108 60,701 64,856 60,400 60,773 63,610 64,606 59,423 60,681 -422 64 Other liabilities and subordinated note and debentures. 40,864 41,375 41,982 42,095 42,798 40,980 39,937 40,563 42,121 -583 65 Total liabilities 235,251 235,792 245,125' 236,832' 247,286 248,892 261,695 237,377 245,478 -1,032 66 Residual (total assets minus total liabilities)6 22,959 22,746 23,088 23,044 22,935 22,925 23,284 23,063 23,214 -112 MEMO 67 Total loans and leases (gross) and investments adjusted1'7 163,382 161,046 166,210 163,551 168,653 167,935 165,443 163,672 163,685 -844 68 Total loans and leases (gross) adjusted7 144,781 142,704 146,998 144,484 149,870 148,929 146,357 143,898 144,053 -800 69 Time deposits in amounts of $100,000 or more 34,475 33,948 34,371' 34,254' 34,580 34,733 35,399 35,008 34,672 -60 1. Excludes trading account securities. 6. Not a measure of equity capital for use in capital adequacy analysis or for 2. Not available due to confidentiality. other analytic uses. 3. Includes securities purchased under agreements to resell. 7. Exclusive of loans and federal funds transactions with domestic commercial 4. Includes trading account securities. banks. 5. Includes federal funds purchased and securities sold under agreements to NOTE. These data also appear in the Board's H.4.2 (504) release. For address, repurchase. see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS WITH ASSETS OF $750 MILLION OR MORE ON JUNE 30, 1980 Assets and Liabilities A Millions of dollars, Wednesday figures 1984 1985 AAccccoouunntt Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Jan. 2 Jan. 9 Jan. 16 1 Cash and due from depository institutions. 6,884 6,669 6,884 6,468 6,884 6,679 7,064 6,536 6,652 2 Total loans and securities 43,954 43,857 42,513 42,402 44,095 45,047 47,123 43,910 43,407 3 U.S. Treasury and govt, agency securities 3,991 3,890 4,176 4,185 4,053 3,940 3,962 4,082 4,093 4 Other securities 1,239 1,263 1,278 1,273 1,272 1,282 1,277 1,282 1,356 5 Federal funds sold1 3,841 4,336 3,112 2,808 3,378 4,128 5,642 3,260 3,326 6 To commercial banks in the United States 3,575 4,065 2,824 2,488 2,978 3,716 5,256 2,865 3,018 7 To others 266 271 289 319 400 412 387 395 308 8 Other loans, gross 34,883 34,367 33,947 34,136 35,391 35,698 36,241 35,286 34,631 9 Commercial and industrial 19,585 19,298 19,188 19,391 20,174 20,276 20,926 19,920 19,790 10 Bankers acceptances and commercial paper 1,380 1,221 1,493 1,480 1,445 1,317 1,350 1,205 1,314 11 All other 18,205 18,077 17,695 17,911 18,729 18,959 19,577 18,714 18,476 12 U.S. addressees 16,781 16,702 16,344 16,609 17,434 17,685 18,354 17,520 17,281 13 Non-U.S. addressees 1,424 1,375 1,351 1,302 1,295 1,274 1,223 1,194 1,195 14 To financial institutions 11,496 11,361 11,115 10,738 11,087 11,221 10,871 11,220 10,779 15 Commercial banks in the United States . 9,070 8,971 8,614 8,293 8,239 8,382 8,118 8,614 8,460 16 Banks in foreign countries 1,508 1,500 1,519 1,540 1,580 1,600 1,508 1,403 1,422 17 Nonbank financial institutions 919 890 981 905 1,268 1,239 1,245 1,203 897 18 To foreign govts, and official institutions .. 699 693 686 690 711 686 691 690 694 19 For purchasing and carrying securities .. 1,038 958 922 1,285 1,416 1,457 1,681 1,382 1,193 20 All other 2,063 2,057 2,035 2,032 2,004 2,058 2,071 2,074 2,175 21 Other assets (claims on nonrelated parties).. 19,204 19,506 19,119 19,371 19,169 19,586 19,302 19,440 18,888 22 Net due from related institutions 9,920 8,709 10,098 10,301 10,487 10,631 9,350 11,535 11,474 23 Total assets 79,962 78,741 78,614 78,542 80,634 81,944 82,840 81,421 80,421 24 Deposits or credit balances due to other than directly related institutions.... 22,465' 22,411' 23,436 24,070' 24,366' 24,597 24,802 24,369 24,047 25 Credit balances 122 128 130 183 141 183 201 132 137 26 Demand deposits 1,658' 1,569' 1,791 1,731 1,712' 1,632 1,873 1,582 1,653 27 Individuals, partnerships, and corporations 852 834 885 901 892 877 937 838 838 28 Other 806' 734' 906 830 82C 756 937 743 815 29 Time and savings deposits 20,685 20,714 21,514 22,156' 22,513 22,782 22,728 22,654 22,257 30 Individuals, partnerships, and corporations 17,050 17,073 17,520 18,286 18,663 18,841 18,537 18,552 18,128 31 Other 3,635 3,641 3,994 3,871' 3,851 3,941 4,190 4,102 4,129 32 Borrowings from other than directly related institutions 28,351' 26,577' 28,887 26,776' 28,964 27,496 29,003 29,176 29,672 33 Federal funds purchased2 10,034 8,553 10,525 8,781 10,689 9,378 11,627 11,663 12,113 34 From commercial banks in the United States 7,841 6,424 8,804 7,095 8,598 7,304 9,828 9,614 9,927 35 From others 2,192 2,130 1,720 1,686 2,091 2,074 1,798 2,050 2,187 36 Other liabilities for borrowed money. ... 18,317' 18,024' 18,362 17,995' 18,274 18,118 17,376 17,513 17,559 37 To commercial banks in the United States 16,643' 16,328' 16,581 16,240' 16,445 16,329 15,748 16,011 16,002 38 To others 1,674 1,696 1,781 1,754 1,830 1,789 1,628 1,502 1,556 39 Other liabilities to nonrelated parties 20,174 20,541 20,101 20,344 20,457 20,818 20,775 20,782 20,242 40 Net due to related institutions 8,973 9,211 6,189 7,352 6,848' 9,032 8,259 7,094 6,459 41 Total liabilities 79,962 78,741 78,614 78,542 80,634 81,944 82,840 81,421 80,421 MEMO 42 Total loans (gross) and securities adjusted3 31,309 30,821 31,074 31,621 32,877 32,949 33,749 32,431 31,929 43 Total loans (gross) adjusted3 26,079 25,668 25,621 26,163 27,552 27,728 28,510 27,068 26,479 • Levels of many asset and liability items were revised beginning Oct. 31, 3. Exclusive of loans to and federal funds sold to commercial banks in the 1984. For details, see the H.4.2 (504) statistical release dated Nov. 23, 1984. United States. 1. Includes securities purchased under agreements to resell. NOTE. These data also appear in the Board's H.4.2 (504) release. For address, 2. Includes securities sold under agreements to repurchase. see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • March 1985 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1983 1984 1199779922 11998800 11998811 11998822 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar. June Sept. 1 All holders—Individuals, partnerships, and corporations 302.3 315.5 288.9 291.8 281.9 280.3 293.5 279.3 285.8 284.3 2 Financial business 27.1 29.8 28.0 35.4 34.6 32.1 32.8 31.7 31.7 31.9 3 Nonfinancial business 157.7 162.8 154.8 150.5 146.9 150.2 161.1 150.3 154.9 154.7 4 Consumer 99.2 102.4 86.6 85.9 80.3 77.9 78.5 78.1 78.3 77.2 5 Foreign 3.1 3.3 2.9 3.0 3.0 2.9 3.3 3.3 3.4 3.3 6 Other 15.1 17.2 16.7 17.0 17.2 17.1 17.8 15.9 17.4 17.3 Weekly reporting banks 1983 1984 1199779933 11998800 11998811 11998822 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June Sept. Dec.4 Mar. June Sept. 7 All holders—Individuals, partnerships, and corporations 139.3 147.4 137.5 144.2 139.6 136.3 146.2 139.2 145.3 145.6 8 Financial business 20.1 21.8 21.0 26.7 26.1 23.6 24.2 23.5 23.6 23.7 9 Nonfinancial business 74.1 78.3 75.2 74.3 72.8 72.9 79.8 76.4 79.7 79.4 10 Consumer 34.3 35.6 30.4 31.9 28.5 28.1 29.7 28.4 29.9 30.0 11 Foreign 3.0 3.1 2.8 2.9 2.8 2.8 3.1 3.2 3.2 3.2 12 Other 7.8 8.6 8.0 8.4 9.3 8.9 9.3 7.7 8.9 9.3 1. Figures include cash items in process of collection. Estimates of gross exceeding $750 million as of Dec. 31, 1977. Beginning in March 1979, demand deposits are based on reports supplied by a sample of commercial banks. Types of deposit ownership estimates for these large banks are constructed quarterly on the depositors in each category are described in the June 1971 BULLETIN, p. 466. basis of 97 sample banks and are not comparable with earlier data. The following 2. Beginning with the March 1979 survey, the demand deposit ownership estimates in billions of dollars for December 1978 have been constructed for the survey sample was reduced to 232 banks from 349 banks, and the estimation new large-bank panel; financial business, 18.2; nonfinancial business, 67.2; procedure was modified slightly. To aid in comparing estimates based on the old consumer, 32.8; foreign, 2.5; other, 6.8. and new reporting sample, the following estimates in billions of dollars for 4. In January 1984 the weekly reporting panel was revised; it now includes 168 December 1978 have been constructed using the new smaller sample; financial banks. Beginning with March 1984, estimates are constructed on the basis of 92 business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and sample banks and are not comparable with earlier data. Estimates in billions of other, 15.1. dollars for December 1983 based on the newly weekly reporting panel are: 3. After the end of 1978 the large weekly reporting bank panel was changed to financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; 170 large commercial banks, each of which had total assets in domestic offices other, 9.5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 19843 IInnssttrruummeenntt 1 D 9 e 7 c 9 . 1 D 19 e 8 c 0 . D 19 e 8 c 1 . D 1 e 9 c 8 . 2 2 D 19 e 8 c 3 . June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 112,803 124,374 165,829 166,670 188,057 218,898 221,431 222,448 226,474 227,960 235,811 Financial companies4 Dealer-placed paper5 2 Total 17,359 19,599 30,333 34,634 44,943 51,101 51,157 52,695 54,283 53,388 55,333 3 Bank-related (not seasonally adjusted) 2,784 3,561 6,045 2,516 2,441 1,944 1,799 2,010 1,959 2,060 1,996 Directly placed paper6 4 Total 64,757 67,854 81,660 84,130 96,548 109,026 109,076 108,109 107,206 110044,,665555 110099,,228844 5 Bank-related (not seasonally adjusted) 17,598 22,382 26,914 32,034 35,566 43,960 45,090 43,665 41,066 38,112 40,185 6 Nonfinancial companies7 30,687 36,921 53,836 47,906 46,566 58,771 61,198 61,644 64,985 69,917 71,194 Bankers dollar acceptances (not seasonally adjusted)8 7 Total 45,321 54,744 69,226 79,543 78,309 82,067 80,957 79,779 77,928 75,74<K 75,179 Holder 8 Accepting banks 9,865 10,564 10,857 10,910 9,355 10,877 10,708 10,743 11,065 10,534' 10,397 9 Own bills 8,327 8,963 9,743 9,471 8,125 9,354 8,854 8,823 8,729 8,96c 9,081 10 Bills bought 1,538 1,601 1,115 1,439 1,230 1,523 1,853 1,920 2,336 1,574' 1,316 Federal Reserve Banks 11 Own account 704 776 195 1,480 418 0 0 0 0 0 0 12 Foreign correspondents 1,382 1,791 1,442 949 729 697 611 632 686 658 615 13 Others 33,370 41,614 56,731 66,204 68,225 70,493 69,639 68,404 66,177 63,635 64,781 Basis 14 Imports into United States 10,270 11,776 14,765 17,683 15,649 17,301 17,947 17,647 17,196 16,256 16,433 15 Exports from United States 9,640 12,712 15,400 16,328 16,880 16,421 15,485 15,871 15,985 16,312 15,849 16 All other 25,411 30,257 39,060 45,531 45,781 48,345 47,525 46,260 44,746 43,155' 42,897 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 5. 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, 6. 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 7. 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. Correction of a previous misclassification of paper by a reporter has created transportation, and services. a break in the series beginning December 1983. The correction adds some paper to 8. Beginning October 1984, the number of respondents in the bankers acceptnonfinancial and to dealer-placed financial paper. ance survey will be reduced from 340 to 160 institutions—those with $50 million or 4. Institutions engaged primarily in activities such as, but not limited to, more in total acceptances. The new reporting group accounts for over 95 percent commercial, savings, and mortgage banking; sales, personal, and mortgage of total acceptances activity. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective Date Rate Month Average rate 16.00 1983--Jan. 11.. 11.00 1982-—Jan 15.75 1983—Aug 15.75 Feb. 28. 10.50 Feb 16.56 Sept Aug. 8.. 11.00 16.50 Oct Apr 16.50 16.50 1984--Mar. 19. 11.50 May 16.50 Dec 17.00 Apr. 5.. 12.00 16.50 16.50 May 8.. 12.50 July 16.26 1984—Jan 16.00 June 25.. 13.00 Aug 14.39 Feb 15.50 Sept.27.. 12.75 Sept 13.50 Mar 15.00 Oct. 17.. 12.50 Oct 12.52 14.50 29.. 12.00 Nov 11.85 May 14.00 Nov. 9.. 11.75 Dec 11.50 June 13.50 28.. 11.25 July 13.00 Dec. 20.. 10.75 1983-—Jan 11.16 Aug 12.00 Feb 10.98 Sept 11.50 1985--Jan. 15 10.50 Mar 10.50 Oct Apr 10.50 Nov May 10.50 Dec June 10.50 July 10.50 1985—Jan NOTE. These data also appear in the Board's H.15 (519) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • March 1985 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. 1984 1984, week ending IInnssttrruummeenntt 11998822 11998833 11998844 Sept. Oct. Nov. Dec. Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 MONEY MARKET RATES 1 Federal funds1-2 12.26 9.09 10.23 11.30 9.99 9.43 8.38 9.00 8.83 8.70 7.99 7.95 2 Discount window borrowing12 3 11.02 8.50 8.80 9.00 9.00 8.83 8.37 8.50 8.50 8.50 8.50 8.29 Commercial paper4'5 3 1-month 11.83 8.87 10.05 11.11 10.05 9.01 8.39 8.61 8.69 8.65 8.12 8.07 4 3-month 11.89 8.88 10.10 11.04 10.12 9.03 8.44 8.64 8.72 8.71 8.20 8.11 5 6-month 11.89 8.89 10.16 10.94 10.16 9.06 8.55 8.69 8.83 8.82 8.31 8.23 Finance paper, directly placed4'5 6 1-month 11.64 8.80 9.97 10.98 9.92 8.92 8.25 8.48 8.65 8.56 7.88 7.88 7 3-month 11.23 8.70 9.73 10.62 9.87 8.83 8.12 8.49 8.46 8.44 7.90 7.66 8 6-month 11.20 8.69 9.65 10.55 9.87 8.82 8.09 8.48 8.41 8.39 7.88 7.69 Bankers acceptances5 6 9 3-month 11.89 8.90 10.14 11.04 10.13 9.00 8.45 8.67 8.74 8.70 8.20 8.14 10 6-month 11.83 8.91 10.19 10.91 10.14 9.02 8.54 8.72 8.86 8.78 8.26 8.24 Certificates of deposit, secondary market7 11 1-month 12.04 8.96 10.17 11.20 10.18 9.09 8.47 8.70 8.79 8.73 8.21 8.11 12 3-month 12.27 9.07 10.37 11.29 10.38 9.18 8.60 8.81 8.92 8.86 8.34 8.25 13 6-month 12.57 9.27 10.68 11.47 10.63 9.39 8.85 9.02 9.16 9.13 8.59 8.49 14 Eurodollar deposits, 3-month8 13.12 9.56 10.73 11.67 10.77 9.50 8.90 9.10 9.21 9.14 8.64 8.63 U.S. Treasury bills5 Secondary market9 15 3-month 10.61 8.61 9.52 10.37 9.74 8.61 8.06 8.41 8.44 8.27 7.81 7.67 16 6-month 11.07 8.73 9.76 10.47 9.87 8.81 8.28 8.55 8.61 8.43 8.03 8.03 17 1-year 11.07 8.80 9.92 10.51 9.93 9.01 8.60 8.78 8.86 8.73 8.37 8.40 Auction average10 18 3-month 10.686 8.63 9.58 10.41 9.97 8.79 8.16 8.43 8.52 8.38 7.97 7.75 19 6-month 11.084 8.75 9.80 10.51 10.05 8.99 8.36 8.50 8.67 8.57 8.15 8.04 2200 1111..009999 88..8866 99..9911 1100..8844 1100..3322 99..1100 88..3388 88..7744 88..3388 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 12.27 9.57 10.89 11.58 10.90 9.82 9.33 9.55 9.63 9.49 9.09 9.10 22 2-year 12.80 10.21 11.65 12.21 11.60 10.65 10.18 10.37 10.47 10.36 9.94 9.94 73 2-'/2-year13 10.60 10 45 24 3-year 12.92 10.45 11.89 12.34 11.85 10.90 10.56 10.67 10.80 10.71 10.32 10.39 25 5-year 13.01 10.80 12.24 12.53 12.06 11.33 11.07 11.09 11.21 11.19 10.90 10.96 26 7-year 13.06 11.02 12.40 12.60 12.16 11.49 11.45 11.32 11.52 11.56 11.31 11.39 27 10-year 13.00 11.10 12.44 12.52 12.16 11.57 11.50 11.39 11.58 11.61 11.37 11.42 28 20-year 12.92 11.34 12.48 12.42 12.04 11.66 11.64 11.54 11.71 11.73 11.52 11.56 29 30-year 12.76 11.18 12.39 12.29 11.98 11.56 11.52 11.43 11.59 11.61 11.41 11.45 Composite14 30 Over 10 years (long-term) 12.23 10.84 11.99 11.97 11.66 11.25 11.21 11.12 11.29 11.30 11.09 11.13 State and local notes and bonds Moody's series15 31 Aaa 10.88 8.80 9.61 9.58 9.72 9.78 9.54 9.75 9.60 9.55 9.50 9.50 32 Baa 12.48 10.17 10.38 10.40 10.51 10.47 10.45 10.40 10.40 10.40 10.50 10.50 33 Bond Buyer series16 11.66 9.51 10.10 10.10 10.25 10.17 9.95 10.04 9.95 10.00 9.93 9.91 Corporate bonds Seasoned issues17 34 All industries 14.94 12.78 13.49 13.56 13.33 12.88 12.74 12.70 12.79 12.80 12.67 12.68 35 Aaa 13.79 12.04 12.71 12.66 12.63 12.29 12.13 12.05 12.20 12.21 12.04 12.05 36 Aa 14.41 12.42 13.31 13.27 13.11 12.66 12.50 12.51 12.54 12.55 12.43 12.47 37 A 15.43 13.10 13.74 13.94 13.61 13.09 12.92 12.93 13.01 13.01 12.85 12.80 38 Baa 16.11 13.55 14.19 14.35 13.94 13.48 13.40 13.34 13.42 13.43 13.35 13.39 39 A-rated, recently-offered utility bonds18 15.49 12.73 13.81 13.86 13.52 12.98 12.88 12.90 13.01 12.98 12.70 12.79 MEMO: Dividend/price ratio19 40 Preferred stocks 12.53 11.02 11.59 11.65 11.62 11.36 11.21 11.26 11.19 11.33 11.12 11.18 41 Common stocks 5.81 4.40 4.64 4.54 4.62 4.61P 4.68 4.66 4.74 4.72 4.61 4.64 1. Weekly and monthly figures are averages of all calendar days, where the 11. Yields are based on closing bid prices quoted by at least five dealers. rate for a weekend or holiday is taken to be the rate prevailing on the preceding 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields business day. The daily rate is the average of the rates on a given day weighted by are read from a yield curve at fixed maturities. Based on only recently issued, the volume of transactions at these rates. actively traded securities. 2. Weekly figures are averages for statement week ending Wednesday. 13. Each biweekly figure is the average of five business days ending on the 3. Rate for the Federal Reserve Bank of New York. Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate 4. Unweighted average of offering rates quoted by at least five dealers (in the determined the maximum interest rate payable in the following two-week period case of commercial paper), or finance companies (in the case of finance paper). on 2-Vi-year small saver certificates. (See table 1.16.) Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. Averages (to maturity or call) for all outstanding bonds neither due nor and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150— callable in less than 10 years, including several very low yielding "flower" bonds. 179 days for finance paper. 15. General obligations based on Thursday figures; Moody's Investors Service. 5. Yields are quoted on a bank-discount basis, rather than an investment yield 16. General obligations only, with 20 years to maturity, issued by 20 state and basis (which would give a higher figure). local governmental units of mixed quality. Based on figures for Thursday. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Daily figures from Moody's Investors Service. Based on yields to maturity (which may be, but need not be, the average of the rates quoted by the dealers). on selected long-term bonds. 7. Unweighted average of offered rates quoted by at least five dealers early in 18. Compilation of the Federal Reserve. This series is an estimate of the yield the day. on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 8. Calendar week average. For indication purposes only. call protection. Weekly data are based on Friday quotations. 9. Unweighted average of closing bid rates quoted by at least five dealers. 19. Standard and Poor's corporate series. Preferred stock ratio based on a 10. Rates are recorded in the week in which bills are issued. Beginning with the sample of ten issues: four public utilities, four industrials, one financial, and one Treasury bill auction held on Apr. 18, 1983, bidders were required to state the transportation. Common stock ratios on the 500 stocks in the price index. percentage yield (on a bank discount basis) that they would accept to two decimal NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. places. Thus, average issuing rates in bill auctions will be reported using two For address, see inside front cover. rather than three decimal places. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.36 STOCK MARKET Selected Statistics 1984 IInnddiiccaattoorr 11998822 11998833 11998844 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 68.93 92.63 92.46 90.67 90.07 88.28 87.08 94.49 95.68 95.09 95.85 94.85 2 Industrial 78.18 107.45 108.01 106.56 105.94 104.04 102.29 111.20 112.18 110.44 110.91 109.05 3 Transportation 60.41 89.36 85.63 83.61 81.62 79.29 76.72 86.86 86.88 86.82 87.37 88.00 4 Utility 39.75 47.00 46.44 43.86 44.22 43.65 44.17 46.69 47.47 49.02 49.93 50.58 5 Finance 71.99 95.34 89.28 88.22 85.06 80.75 79.03 87.92 91.59 92.94 95.28 95.29 6 Standard & Poor's Corporation (1941-43 = 10)1 ... 119.71 160.41 160.50 157.60 156.55 153.12 151.08 164.42 166.11 164.82 166.27 164.48 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 141.31 216.48 207.96 207.66 206.39 201.24 192.82 207.90 214.50 210.39 209.47 202.28 Volume of trading (thousands of shares) 8 New York Stock Exchange 64,617 85,418 91,084 85,874 88,170 85,920 79,156 109,892 93,108 91,676 83,692 89,032 9 American Stock Exchange 5,283 8,215 6,107 5,863 5,935 5,071 5,141 7,477 5,967 5,587 6,008 7,254 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 13,325 23,000 22,470 22,830 22,360 23,450 22,980 22,810 22,800 22,330 t t t t t t t t 11 Margin stock 12,980 22,720 12 Convertible bonds 344 279 13 Subscription issues 1 Free credit balances at brokers4 14 Margin-account 5,735 6,620 7,015 6,450 6,685 6,430 6,430 6,855 6,690 6,580 15 Cash-account 8,390 8,430 10,215 7,910 8,115 8,305 8,125 8,185 8,315 8,650 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class fin percent)5 17 Under 40 21.0 41.0 46.0 47.0 53.0 50.0 52.0 40.0 42.0 44.0 47.0 46.0 18 40-49 24.0 22.0 18.0 20.0 18.0 19.0 17.0 22.0 22.0 21.0 19.0 18.0 19 50-59 24.0 16.0 16.0 13.0 12.0 12.0 12.0 16.0 15.0 14.0 13.0 16.0 20 60-69 14.0 9.0 9.0 8.0 7.0 8.0 8.0 9.0 9.0 9.0 9.0 9.0 21 70-79 9.0 6.0 5.0 6.0 5.0 6.0 5.0 6.0 6.0 6.0 6.0 5.0 22 80 or more 8.0 6.0 6.0 6.0 5.0 5.0 6.0 7.0 6.0 6.0 6.0 6.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 35,598 58,329 75,840 66,340 70,110 69,410 70,588 71,840 72,350 71,914 73,904 75,840 Distribution by equity status (percent) 24 Net credit status 62.0 63.0 59.0 60.0 60.0 56.0 57.0 58.0 58.0 59.0 59.0 59.0 Debt status, equity of 25 60 percent or more 29.0 28.0 29.0 29.0 27.0 30.0 30.0 31.0 31.0 30.0 29.0 29.0 26 Less than 60 percent 9.0 9.0 11.0 11.0 13.0 14.0 13.0 11.0 11.0 11.0 12.0 11.0 Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 5. Each customer's equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 6. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers based on loan values of 2. 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. Beginning July 1983, under the revised Regulation T, margin credit at 7. Regulations G, T, and U of the Federal Reserve Board of Governors, broker-dealers includes credit extended against stocks, convertible bonds, stocks prescribed in accordance with the Securities Exchange Act of 1934, limit the acquired through exercise of subscription rights, corporate bonds, and govern- amount of credit to purchase and carry margin stocks that may be extended on ment securities. Separate reporting of data for margin stocks, convertible bonds, securities as collateral by prescribing a maximum loan value, which is a specified and subscription issues was discontinued in April 1984, and margin credit at percentage of the market value of the collateral at the time the credit is extended. broker-dealers became the total that is distributed by equity class and shown on Margin requirements are the difference between the market value (100 percent) lines 17-22. and the maximum loan value. The term "margin stocks" is defined in the 4. 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

A26 Domestic Nonfinancial Statistics • March 1985 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1984 AAccccoouunntt 11998811 11998822 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Savings and loan associations' 1 Assets 664,167 707,646 774,414 781,821 797,849 808,264 825,557 840,682 850,780 860,088 877,642 881,627 887,696 2 Mortgages 518,547 483,614 496,015 499,337 503,509 510,670 519,628 528,172 535,814 540,644 550,129 552,516 556,229 3 Cash and investment securities1 63,123 85,438 102,760 104,800 109,477 106,863 110,033 109,752 108,456 108,820 112,350 112,023 114,879 4 Other 82,497 138,594 175,639 177,684 184,863 190,731 195,896 202,758 206,510 210,624 215,163 217,088 216,588 5 Liabilities and net worth 664,167 707,646 774,414 781,821 797,849 808,264 825,557 840,682 850,780 860,088 877,642 881,627 887,696 6 Savings capital 525,061 567,961 640,079 644,977 656,650 660,663 670,666 681,947 687,817 691,704 704,558 708,846 714,780 7 Borrowed money 88,782 97,850 87,034 87,269 94,113 98,275 103,119 108,417 110,238 114,747 121,329 119,305 117,775 8 FHLBB 62,794 63,861 50,880 50,465 50,663 51,951 53,485 56,558 57,115 60,178 63,627 63,412 63,383 9 Other 25,988 33,989 36,154 36,804 43,450 46,324 49,634 51,859 53,123 54,569 57,702 55.893 54,392 10 Loans in process2 6,385 9,934 21,532 21,974 22,969 23,938 24,761 25,726 26,122 26,773 27,141 26,754 26,683 11 Other 15,544 15,602 16,415 18,146 15,548 17,524 19,832 17,586 19,970 20,599 18,050 19.894 21,302 12 Net worth3 28,395 26,233 30,886 31,429 31,538 31,802 31,940 32,732 32,755 33,038 33,705 33,582 33,839 13 MEMO: Mortgage loan commitments outstanding4 15,225 18,054 33,504 36,198 39,867 41,732 45,274 44,878 43,878 41,182 40,089 38,530 37,856 Mutual savings banks5 14 Assets 175,728 174,197 194,217 195,168 197,178 198,000 200,087 198,864 199,128 200,722 201,445 203,274 Loans 15 Mortgage 99,997 94,091 97,703 97,895 98,472 99,017 99,881 99,433 100,091 101,211 101,621 102,704 16 Other 14,753 16,957 20,463 21,694 21,971 22,531 22,907 23,198 23,213 24,068 24,535 24,486 Securities 17 U.S. government6 9,810 9,743 15,167 15,667 15,772 15,913 16,404 15,448 15,457 15,019 14,965 15,295 18 State and local government 2,288 2,470 2,180 2,054 2,067 2,033 2,024 2,037 2,037 2,055 2,052 2,080 19 Corporate and other7 37,791 36,161 43,542 43,439 43,547 43,122 43,200 42,479 42,682 42,632 42,605 43,003 20 Cash 5,442 6,919 4,788 4,580 5,040 5,008 5,031 5,452 4,896 4,981 4,795 4,605 21 Other assets 5,649 7,855 10,374 9,839 10,309 10,376 10,640 10,817 10,752 10,756 10,872 11,101 22 Liabilities 175,728 174,197 194,217 195,168 197,178 198,000 200,087 198,864 199,128 200,722 201,445 203,274 n a. 23 Deposits 155,110 155,196 173,636 174,370 176,044 175,875 176,253 174,972 174,823 176,085 177,345 178,624 24 Regular8 153,003 152,777 171,099 171,957 173,385 173,010 173,310 171,858 171,740 172,990 174,296 175,727 25 Ordinary savings 49,425 46,862 37,992 37,642 37,866 37,329 37,147 36,322 35,511 34,787 34,564 34,221 26 Time 103,578 96,369 96.519 96,005 97,339 96,920 97,236 97,168 98,410 101,270 102,934 104,151 27 Other 2,108 2,419 2,537 2,413 2,659 2,865 2,943 3,114 3,083 3,095 3,049 2,897 28 Other liabilities 10,632 8,336 9,917 10,019 10,390 11,211 12,861 12,999 13,269 13,604 12,979 13,853 29 General reserve accounts 9,986 9,235 10,350 10,492 10,373 10,466 10,554 10,404 10,495 10,498 10,488 10,459 30 MEMO: Mortgage loan commitments outstanding9 1,293 1,285 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Life insurance companies 31 Assets 525,803 588,163 658,504 660,901 665,836 671,259 673,518 679,449 684,573 694,082 699,996 705,827 Securities 32 Government .... 25,209 36,499 51,328 51,762 52,504 52,828 53,422 53,970 54,688 56,263 57,552 59,825 33 United States10 8,167 16,529 29,179 30,130 31,056 31,358 31,706 32,066 32,654 33,886 35,586 37,594 34 State and local 7,151 8,664 9,995 9,426 9,259 9,192 9,239 9,213 9,236 9,357 9,221 9,344 35 Foreign11 9,891 11,306 12,154 12,206 12,189 12,278 12,477 12,691 12,798 13,020 12,745 12,887 36 Business 255,769 287,126 328,075 328,235 331,631 334,634 334,151 338,508 341,802 348,614 350,512 352,059 n.a. 37 Bonds 208,099 231,406 263,207 265,798 268,446 271,296 273,212 276,902 281,113 283,673 285,543 287,607 38 Stocks 47,670 55,720 64,868 62,437 63,185 63,338 60,939 61,606 60,689 64,941 64,969 64,452 39 Mortgages 137,747 141,989 151,085 151,020 151,445 152,373 152,968 153,845 154,299 155,438 155,802 156,064 40 Real estate 18,278 20,264 22,500 22,591 23,034 23,237 23,517 23,792 24,019 24,117 24,685 24,947 41 Policy loans 48,706 52,961 54,089 54,170 54,254 54,365 54,399 54,430 54,441 54,517 54,551 54,574 42 Other assets 40,094 48,571 51,939 53,123 52,968 53,822 55,061 54,904 55,324 55,133 56,894 58,358 Credit unions12 43 Total assets/liabilities and capital 60,611 69,585 82,496 83,726 85,789 86,594 88,350 90,276 90,145 90,503 91,651 91,619 44 Federal 39,181 45,493 54,770 55,753 57,569 58,127 59,636 61,316 61,163 61,500 62,107 61,935 45 State 21,430 24,092 27,726 27,973 28,220 28,467 28,714 28,960 28,982 29,003 29,544 29,684 46 Loans outstanding 42,333 43,232 50,625 51,435 52,269 53,247 54,437 55,915 57,286 58,802 59,874 60,483 47 Federal 27,096 27,948 33,270 33,878 34,510 35,286 36,274 37,547 38,490 39,578 40,310 40,727 48 State 15.237 15,284 17,355 17,557 17,759 17,961 18,163 18,368 18,796 19,224 19,564 19,756 49 Savings 54,152 62,990 75,532 76,556 78,487 79,413 80,702 82,578 82,402 82,135 83,172 83,129 50 Federal (shares) 35,250 41,352 50,438 51,218 52,905 53,587 54,632 56,261 56,278 56,205 56,734 56,655 51 State (shares and deposits)... 18,902 21,638 25,094 25,338 25,582 25,826 26,070 26,317 26,124 25,930 26,438 26,474 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.37 Continued 1984 AAccccoouunntt 11998811 11998822 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. FSLIC-insured federal savings banks 52 Assets 6,859 64,969 69,835 72,143 75,555 77,374 78,952 81,310 83,989 87,209 82,174 87,743 53 Mortgages 3,353 38,698 41,754 43,371 44,708 45,900 46,791 48,084 49,996 52,039 48,841 51,554 54 Cash and investment securities 10,436 11,243 11,662 12,552 12,762 12,814 13,071 13,184 13,331 12,867 13,615 55 Other 15,835 16,838 17,110 18,295 18,712 19,347 20,155 20,809 21,839 20,466 22,574 56 Liabilities and net worth 6,859 64,969 69,835 72,143 75,555 77,374 78,952 81,310 83,989 87,209 82,174 87,743 57 Savings and capital 5,877 53,227 57,195 59,107 61,433 62,495 63,026 64,364 66,227 68,443 65,079 70,080 58 Borrowed money 7,477 8,048 8,088 9,213 9,707 10,475 11,489 12,060 12,863 11,828 11,935 59 FHLBB 4,640 4,751 4,884 5,232 5,491 5,900 6,538 6,897 7,654 6,600 6,867 60 Other 2,837 3,297 3,204 3,981 4,216 4,575 4,951 5,163 5,209 5,228 5,068 61 Other 1,157 1,347 1,545 1,360 1,548 1,747 1,646 1,807 1,912 1,610 1,896 62 Net worth3 3,108 3,245 3,403 3,549 3,624 3,704 3,811 3,895 3,991 3,657 3,832 MEMO 63 Loans in process2 1,264 1,387 1,531 1,669 1,716 1,787 1,839 1,901 1,895 1,505 1,457 64 Mortgage loan commitments outstanding4 2,151 2,974 2,704 3,253 3,714 3,763 3,583 3,988 3,860 2,970 2,925 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." 11. Issues of foreign governments and their subdivisions and bonds of the 2. Beginning in 1982, loans in process are classified as contra-assets and are International Bank for Reconstruction and Development. not included in total liabilities and net worth. Total assets are net of loans in 12. As of June 1982, data include only federal or federally insured state credit process. unions serving natural perons. 3. Includes net undistributed income accrued by most associations. NOTE. Savings and loan associations: Estimates by the FHLBB for all 4. Excludes figures for loans in process. associations in the United States. Data are based on monthly reports of federally 5. The National Council reports data on member mutual savings banks and on insured associations and annual reports of other associations. Even when revised, savings banks that have converted to stock institutions, and to federal savings data for current and preceding year are subject to further revision. banks. Mutual savings banks: Estimates of National Council of Savings Institutions for 6. Beginning April 1979, includes obligations of U.S. government agencies. 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 7. 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 8. Excludes checking, club, and school accounts. year-end market value. Adjustments for interest due and accrued and for 9. Commitments outstanding (including loans in process) of banks in New differences between market and book values are not made on each item separately York State as reported to the Savings Banks Association of the State of New but are included, in total, in "other assets." York. Credit unions: Estimates by the National Credit Union Administration for a 10. Direct and guaranteed obligations. Excludes federal agency issues not group of federal and federally insured state credit unions serving natural persons. guaranteed, which are shown in the table under "Business" securities. Figures are preliminary and revised annually to incorporate recent data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • March 1985 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 1983 1984 1984 11998822 11998833 11998844 HI H2 HI Oct. Nov. Dec. U.S. budget 1 Receipts1 617,766 600,562 666,457 306,331 306,584 341,808 52,251 51,494 62,404 2 Outlays1 728,375 795,917 841,800 396,477 406,849 420,700 81,037 79,956 77,583 3 Surplus, or deficit (-) -110,609 -195,355 -175,343 -90,146 -100,265 -78,892 -28,786 -28,462 -15,179 4 Trust funds 5,456 23,056 30,565 22,680 7,745 18,080 10,055 -265 8,426 5 Federal funds2'3 -116,065 -218,410 -205,908 -112,822 -108,005 -96,971 -38,842 -28,197 -23,606 Off-budget entities (surplus, or deficit (-)) 6 Federal Financing Bank outlays -14,142 -10,404 -7,277 -5,418 -3,199 -2,813 154 -48 142 7 Other3'4 -3,190 -1,953 -2,719 -528 -1,206 -838 613 -392 475 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -127,940 -207,711 -185,339 -96,094 -104,670 -84,884 -28,019 -28,902 -14,563 Source of financing 9 Borrowing from the public 134,993 212,425 170,817 102,538 84,020 80,592 20,754 19,353 24,055 10 Cash and monetary assets (decrease, or increase (-))4 -11,911 -9,889 5,636 -9,664 -16,294 -3,127 7,564 14,780 -10,490 11 Other5 4,858 5,176 8,885 3,222 4,358 7,418 -299 -5,231 998 MEMO 12 Treasury operating balance (level, end of period) 29,164 37,057 37,057 27,997' 11,817' 13,567' 22,345 5,566 17,649 13 Federal Reserve Banks 10,975 16,557 16,557 19,442 3,661' 4,397' 3,791 2,216 5,316 14 Tax and loan accounts 18,189 20,500 20,500 8,764' 8,157' 9,170' 18,553 3,350 12,333 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Includes accrued interest payable to the public; allocations of special voluntary hospital insurance premiums, previously included in other insurance drawing rights; deposit funds; miscellaneous liability (including checks outstandreceipts, have been reclassified as offsetting receipts in the health function. ing) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S. 2. 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. 3. Other off-budget includes Postal Service Fund; Rural Electrification and Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. and transportation and strategic petroleum reserve effective November 1981. Government" Treasury Bulletin, and the Budget of the U.S. Government, Fiscal 4. Includes U.S. Treasury operating cash accounts; SDRs; gold tranche Year 1985. drawing rights; loans to International Monetary Fund; and other cash and monetary assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 1.39 U. S. B UDGET RECEIPTS AND O UTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1982 1983 1984 1984 111999888333 111999888444 H2 HI H2 HI Oct. Nov. Dec. RECEIPTS 1 All sources 600,563 666,457 286,337 306,331 305,122 341,808 52,250 51,494 62,404 ? Individual income taxes, net 288,938 295,955 145,676 144,551 147,663 144,691 25,624 24,792 27,054 3 Withheld 266,010 279,345 131,567 135,531 133,768 140,657 24,721 24,573 25,979 4 Presidential Election Campaign Fund ... 36 35 5 30 6 29 0 0 0 Nonwithheld 83,586 81,346 20,041 63,014 20,703 61,463 1,463 1,036 2,003 6 Refunds 60,692 64,771 5,938 54,024 6,815 57,458 559 816 929 Corporation income taxes 7 Gross receipts 61,780 74,179 25,660 33,522 31,064 4400,,332288 33,,330077 1,888 1122,,335511 8 Refunds 24,758 17,286 11,467 13,809 8,921 10,045 2,371 766 820 9 Social insurance taxes and contributions, net 209,001 241,902 94,277 110,520 100,832 131,372 19,107 19,525 1188,,112277 10 Payroll employment taxes and contributions' 179,010 203,476 85,064 90,912 88,388 110066,,443366 1177,,227733 1166,,775522 1177,,332288 11 Self-employment taxes and contributions2 6,756 8,709 177 6,427 398 7,667 146 00 00 1? Unemployment insurance 18,799 25,138 6,856 10,984 8,714 14,942 1,323 2,346 397 13 Other net receipts3 4,436 4,580 2,180 2,197 2,290 2,329 365 427 403 14 35,300 37,361 16,555 16,904 19,586 18,304 3,264 3,151 2,907 15 Customs deposits 8,655 11,370 4,299 4,010 5,079 5,576 1,150 989 922 16 Estate and gift taxes 6,053 6,010 3,444 2,883 3,050 3,102 582 495 469 17 Miscellaneous receipts4 15,594 16,965 7,890 7,751 7,811 8,481 1,586 1,421 1,395 OUTLAYS 18 All types 795,917 841,800 390,847 396,477 406,849 420,700 81,037 79,956 77,583 19 National defense 210,461 227,405 100,419 105,072 108,967 114,639 20,643 22,017 20,156 70 International affairs 8,927 13,313 4,406 4,705 6,117 5,426 1,995 1,423 1,297 71 General science, space, and technology ... 7,777 8,271 3,903 3,486 4,216 3,981 961 667 692 ?? Energy 4,035 2,464 2,058 2,073 1,533 1,080 562 327 278 ?3 Natural resources and environment 12,676 12,677 6,941 5,892 6,933 5,463 1,390 955 1,253 24 Agriculture 22,173 12,215 13,259 10,154 5,278 7,129 2,344 2,144 2,881 75 Commerce and housing credit 4,721 5,198 2,244 2,164 2,648 2,572 1,390 -271 1,043 76 Transportation 21,231 24,705 10,686 9,918 13,323 10,616 2,411 2,282 2,055 27 Community and regional development .... 7,302 7,803 4,187 3,124 4,327 3,154 1,106 873 627 28 Education, training, employment, social services 25,726 26,616 12,186 12,801 13,246 1133,,444455 22,,336699 22,,665555 22,,008899 79 Health 28,655] 30,435 39,072 41,206 42,150 15,748 2,891 2,515 2,677 30 Social security and medicare 223,311) 235,764 133,779 143,001 21,457 19,631 20,640 31 Income security 106,211J 96,714 135,579 65,212 10,493 10,880 10,704 V Veterans benefits and services 24,845 25,640 13,240 11,334 13,621 12,849 2,108 3,350 2,393 33 Administration of justice 5,014 5,616 2,373 2,522 2,628 2,807 376 633 491 34 General government 4,991 4,836 2,323 2,434 2,479 2,462 536 143 569 35 General-purpose fiscal assistance 6,287 6,577 3,153 3,124 3,290 2,943 1,735 119 21 36 Net interest® 89,774 111,007 44,948 42,358 47,674 53,729 9,497 12,120 10,085 37 Undistributed offsetting receipts7 -21,424 -15,454 -8,332 -8,887 -7,262 -7,333 -3,226 -2,508 -2,368 1. Old-age, disability, and hospital insurance, and railroad retirement accounts. function. Before February 1984, these outlays were included in the income 2. Old-age, disability, and hospital insurance. security and health functions. 3. Federal employee retirement contributions and civil service retirement and 6. Net interest function includes interest received by trust funds. disability fund. 7. Consists of rents and royalties on the outer continental shelf and U.S. 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous government contributions for employee retirement. receipts. 5. In accordance with the Social Security Amendments Act of 1983, the SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Treasury now provides social security and medicare outlays as a separate Government" and the Budget of the U.S. Government, Fiscal Year 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics • March 1985 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1982 1983 1984 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 3(K 1 Federal debt outstanding 1,147.0 1,201.9 1,249.3 1,324.3 1,381.9 1,415.3 1,468.3 1,517.2 1,576.7 2 Public debt securities 1,142.0 1,197.1 1,244.5 1,319.6 1,377.2 1,410.7 1,463.7 1,512.7 1,572.3 3 Held by public 925.6 987.7 1,043.3 1,090.3 1,138.2 1,174.4 1,223.9 1,255.1 1,312.6 4 Held by agencies 216.4 209.4 201.2 229.3 239.0 236.3 239.8 257.6 264.1 5 Agency securities 5.0 4.8 4.8 4.7 4.7 4.6 4.6 4.5 4.5 6 Held by public 3.7 3.7 3.7 3.6 3.6 3.5 3.5 3.4 3.4 7 Held by agencies 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 8 Debt subject to statutory limit 1,142.9 1,197.9 1,245.3 1,320.4 1,378.0 1,411.4 1,464.5 1,513.4 1,573.0 9 Public debt securities 1,141.4 1,196.5 1,243.9 1,319.0 1,376.6 1,410.1 1,463.1 1,512.1 1,571.7 10 Other debt1 1.5 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,143.1 1,290.2 1,290.2 1,389.0 1,389.0 1,490.0 1,490.0 1,520.0 1,573.0 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 1984 TTyyppee aanndd hhoollddeerr 11998800 11998811 11998822 11998833 Q1 Q2 Q3 Q4 1 Total gross public debt 930.2 1,028.7 1,197.1 1,410.7 1,463.7 1,512.7 1,572.3 1,663.0 By type 2 Interest-bearing debt 928.9 1,027.3 1,195.5 1,400.9 1,452.1 1,501.1 1,559.6 1,660.6 3 Marketable 623.2 720.3 881.5 1,050.9 1,097.7 1,126.6 1,176.6 1,247.4 4 Bills 216.1 245.0 311.8 343.8 350.2 343.3 356.8 374.4 5 Notes 321.6 375.3 465.0 573.4 604.9 632.1 661.7 705.1 6 Bonds 85.4 99.9 104.6 133.7 142.6 151.2 158.1 167.9 7 Nonmarketable1 305.7 307.0 314.0 350.0 354.4 374.5 383.0 413.2 8 State and local government series 23.8 23.0 25.7 36.7 38.1 39.9 41.4 44.4 9 Foreign issues2 24.0 19.0 14.7 10.4 9.9 8.8 8.8 9.1 10 Government 17.6 14.9 13.0 10.4 9.9 8.8 8.8 9.1 11 Public 6.4 4.1 1.7 .0 .0 .0 .0 .0 12 Savings bonds and notes 72.5 68.1 68.0 70.7 71.6 72.3 73.1 73.3 13 Government account series3 185.1 196.7 205.4 231.9 234.6 253.2 259.5 286.2 14 Non-interest-bearing debt 1.3 1.4 1.6 9.8 11.6 11.6 12.7 2.3 By holder4 15 U.S. government agencies and trust funds 192.5 203.3 209.4 236.3 239.8 257.6 263.1 16 Federal Reserve Banks 121.3 131.0 139.3 151.9 150.8 152.9 155.0 17 616.4 694.5 848.4 1,022.6 1,073.0 1,102.2' 1,154.1 18 Commercial banks 112.1 111.4 131.4 188.8 189.8 182.3' 183.0 19 Money market funds 3.5 21.5 42.6 22.8 19.4 14.9 13.6 20 Insurance companies 24.0 29.0 39.1 56.7 57.1 61.6 58.6 n.a. 71 Other companies 19.3 17.9 24.5 39.7 42.6' 45.3' 47.7 22 State and local governments 87. ¥ 104.3' 127.8' 155.1 162.9 165.0 n.a. Individuals 23 Savings bonds 72.5 68.1 68.3 71.5 72.2 72.9 73.7 74 Other securities 44.6 42.7 48.2 61.9 64.0' 69.3 73.8 25 Foreign and international5 129.7 136.6 149.5 166.3' 166.3 171.5' 175.5' 26 Other miscellaneous investors6 122.8r 163.C 217.0' 259.8 298.7 319.4 n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes nontion Administration; depository bonds, retirement plan bonds, and individual interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated se- mutual savings banks, corporate pension trust funds, dealers and brokers, certain ries held by foreigners. U.S. government deposit accounts, and U.S. government-sponsored agencies. 3. Held almost entirely by U.S. government agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. government agencies and trust Statement of the Public Debt of the United States; data by holder. Treasury funds are actual holdings; data for other groups are Treasury estimates. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1984 1984 week ending Wednesday IItteemm 11998811 11998822 11998833 Oct/ Nov/ Dec. Nov. IV Nov. 28' Dec. 5 Dec. 12 Dec. 19 Dec. 26 Immediate delivery1 1 U.S. government securities 24,728 32,271 42,135 61,391 71,105 58,244 73,557 61,569 66,231 53,061 74,355 48,406 By maturity 2 Bills 14,768 18,398 22,393 29,974 31,201 28,322 34,653 25,555 33,605 24,982 34,976 23,391 3 Other within 1 year 621 810 708 1,748 2,454 2,028 2,304 1,880 1,878 2,293 2,468 1,365 4 1-5 years 4,360 6,272 8,758 14,044 18,642 14,979 19,598 18,658 14,119 13,207 19,234 15,107 5 5-10 years 2,451 3,557 5,279 9,460 10,633 7,913 9,737 9,396 11,803 7,845 11,133 5,436 6 Over 10 years 2,528 3,234 4,997 6,164 8,175 5,002 7,266 6,079 4,826 4,733 6,543 3,107 By type of customer 1 U.S. government securities dealers 1,640 1,769 2,257 3,673 3,680 3,979 3,676 2,990 4,198 3,291 4,860 3,404 8 U.S. government securities brokers 11,750 15,659 21,045 28,876 33,375 24,766 35,658 28,766 28,683 24,432 33,964 19,015 9 All others2 11,337 15,344 18,832 28,841 34,050 29,498 34,223 29,814 33,350 25,339 35,531 25,986 10 Federal agency securities 3,306 4,142 5,576 9,233 10,164 8,500 11,168 8,116 8,605 7,742 11,871 6,514 11 Certificates of deposit 4,477 5,001 4,333 4,976 5,198 4,379 5,533 4,830 4,381 4,278 6,028 3,401 12 Bankers acceptances 1,807 2,502 2,642 4,168 4,015 3,371 4,320 3,763 3,732 3,713 4,344 2,167 13 Commercial paper 66,,112288 7,595 8,036 10,589 11,078 10,878 11,441 8,991 10,698 10,547 13,041 9,283 Futures transactions3 14 Treasury bills 3,523 5,031 6,655 4,954 6,653 4,680 6,325 4,849 5,377 5,345 7,466 2,129 15 Treasury coupons 1,330 1,490 2,501 5,108 5,475 4,605 5,046 5,617 7,080 4,413 5,845 1,982 16 Federal agency securities 234 259 265 138 242 131 185 292 161 127 187 86 Forward transactions4 17 U.S. government securities 365 835 1,493 1,258 1,851 1,425 2,600 1,917 973 636 2,522 1,519 18 Federal agency securities 1,370 982 1,646 2,642 3,587 3,342 4,266 2,215 2,710 3,516 4,146 3,382 1. Before 1981, data for immediate transactions include forward transactions. from the date of the transaction for government securities (Treasury bills, notes, 2. Includes, among others, all other dealers and brokers in commodities and and bonds) or after 30 days for mortgage-backed agency issues. securities, nondealer departments of commercial banks, foreign banking agencies, NOTE. Averages for transactions are based on number of trading days in the and the Federal Reserve System. period. 3. Futures contracts are standardized agreements arranged on an organized Transactions are market purchases and sales of U.S. government securities exchange in which parties commit to purchase or sell securities for delivery at a dealers reporting to the Federal Reserve Bank of New York. The figures exclude future date. allotments of, and exchanges for, new U.S. government securities, redemptions 4. Forward transactions are agreements arranged in the over-the-counter of called or matured securities, purchases or sales of securities under repurchase market in which securities are purchased (sold) for delivery after 5 business days agreement, reverse repurchase (resale), or similar contracts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • March 1985 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing Averages of daily figures, in millions of dollars 1984 1984 week ending Wednesday IItteemm 11998822 11998833 11998844 Oct. Nov/ Dec. Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Positions NNNNeeeetttt iiiimmmmmmmmeeeeddddiiiiaaaatttteeee'''' 1111 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss 9,328 6,263 5,543 14,572' 14,513 18,330 15,235 13,741 17,293 16,898 21,963 2222 BBBBiiiillllllllssss 4,837 4,282 5,504 11,675' 9,770 13,845 10,275 10,887 13,517 13,585 15,653 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr -199 -177 63 116 -487 -414 -783' -647 -244 -419 -662 4444 1111----5555 yyyyeeeeaaaarrrrssss 2,932 1,709 2,160 5,560 7,236 7,448 7,111 6,029 6,125 6,335 9,381 5555 5555----11110000 yyyyeeeeaaaarrrrssss -341 -78 -1,119 -1,554 -1,717 -2,122 -1,622' -1,741 -1,668 -2,336 -2,342 6666 OOOOvvvveeeerrrr 11110000 yyyyeeeeaaaarrrrssss 2,001 528 -1,174 -1,348 -431 -565 107 -930 -577 -407 -206 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss 3,712 7,172 15,294 13,169 16,108 18,468 19,525 17,524 18,540 18,438 18,602 8888 CCCCeeeerrrrttttiiiiffffiiiiccccaaaatttteeeessss ooooffff ddddeeeeppppoooossssiiiitttt 5,531 5,839 7,368 7,620 8,511 9,147 8,437 8,112 8,191 8,935 10,255 9999 BBBBaaaannnnkkkkeeeerrrrssss aaaacccccccceeeeppppttttaaaannnncccceeeessss 2,832 3,332 3,874 3,980 4,474 4,329 5,124 4,665 4,241 3,730 4,483 11110000 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll ppppaaaappppeeeerrrr 3,317 3,159 3,787 4,685' 4,965 5,690 4,186 4,970 5,109 5,916 6,308 FFFFuuuuttttuuuurrrreeeessss ppppoooossssiiiittttiiiioooonnnnssss 11111111 TTTTrrrreeeeaaaassssuuuurrrryyyy bbbbiiiillllllllssss -2,508 -4,125 -4,524 -9,449 -8,101 -10,661 -7,837 -8,522 -9,032 -11,137 -12,517 11112222 TTTTrrrreeeeaaaassssuuuurrrryyyy ccccoooouuuuppppoooonnnnssss -2,361 -1,032 1,796 2,519 1,408 821 950 -132 538 1,080 1,133 11113333 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss -224 170 232 -248 -21 -15 -94 -81 148 51 -149 FFFFoooorrrrwwwwaaaarrrrdddd ppppoooossssiiiittttiiiioooonnnnssss 11114444 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss -788 -1,935 -1,643 -855 -1,382 -2,188 -1,725 -852 -1,416 -2,399 -3,763 11115555 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss -1,190 -3,561 -9,204 -8,568 -9,208 -8,294 -10,585 -8,141 -9,098 -8,359 -7,612 Financing2 RRRReeeevvvveeeerrrrsssseeee rrrreeeeppppuuuurrrrcccchhhhaaaasssseeee aaaaggggrrrreeeeeeeemmmmeeeennnnttttssss3333 11116666 OOOOvvvveeeerrrrnnnniiiigggghhhhtttt aaaannnndddd ccccoooonnnnttttiiiinnnnuuuuiiiinnnngggg 26,754 29,099 44,078 48,558 49,834 52,222 50,543 55,742 51,818 51,924 49,256 11117777 TTTTeeeerrrrmmmm aaaaggggrrrreeeeeeeemmmmeeeennnnttttssss 48,247 52,493 68,357 72,907 78,049 75,532 78,025 76,200 77,729 76,440 79,118 RRRReeeeppppuuuurrrrcccchhhhaaaasssseeee aaaaggggrrrreeeeeeeemmmmeeeennnnttttssss4444 11118888 OOOOvvvveeeerrrrnnnniiiigggghhhhtttt aaaannnndddd ccccoooonnnnttttiiiinnnnuuuuiiiinnnngggg 49,695 57,946 75,717 84,77(K 82,964 89,419 91,502 93,343 89,891 89,319 85,414 11119999 TTTTeeeerrrrmmmm aaaaggggrrrreeeeeeeemmmmeeeennnnttttssss 43,410 44,410 57,047 61,396 74,249 67,185 69,143 68,468 68,305 68,777 71,797 1. Immediate positions are net amounts (in terms of par values) of securities 2. Figures cover financing involving U.S. government and federal agency owned by nonbank dealer firms and dealer departments of commercial banks on a securities, negotiable CDs, bankers acceptances, and commercial paper. commitment, that js, trade-date basis, including any such securities that have 3. Includes all reverse repurchase agreements, including those that have been been sold under agreements to repurchase (RPs). The maturities of some arranged to make delivery on short sales and those for which the securities repurchase agreements are sufficiently long, however, to suggest that the securi- obtained have been used as collateral on borrowings, that is, matched agreements. ties involved are not available for trading purposes. Prior to 1984, securities 4. Includes both repurchase agreements undertaken to finance positions and owned, and hence dealer positions, do not include all securities acquired under "matched book" repurchase agreements. reverse RPs. After January 1984, immediate positions include reverses to maturi- NOTE. Data for positions are averages of daily figures, in terms of par value, ty, which are securities that were sold after having been obtained under reverse based on the number of trading days in the period. Positions are shown net and are repurchase agreements that mature on the same day as the securities. Before on a commitment basis. Data for financing are based on Wednesday figures, in 1981, data for immediate positions include forward positions. terms of actual money borrowed or lent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1984 AAggeennccyy 11998811 11998822 11998833 May June July Aug. Sept. Oct. 1 Federal and federally sponsored agencies 221,946 237,085 239,716 252,044 255,376 258,957 263,642' 267,399 259,330^ 2 Federal agencies 31,806 33,055 33,940 34,231 34,473 34,560 34,497 34,754 35,012 3 Defense Department1 484 354 243 188 181 172 162 153 149 4 Export-Import Bank2'3 13,339 14,218 14,853 15,344 15,604 15,611 15,606 15,733 15,721 5 Federal Housing Administration4 413 288 194 156 155 154 146 140 139 6 Government National Mortgage Association participation certificates5 2,715 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 7 Postal Service6 1,538 1,471 1,404 1,337 1,337 1,337 1,337 1,337 1,337 8 Tennessee Valley Authority 13,115 14,365 14,970 14,930 14,980 15,070 15,030 15,160 15,450 9 United States Railway Association6 202 194 111 111 51 51 51 51 51 10 Federally sponsored agencies7 190,140 204,030 205,776 217,813 220,903 224,397 229,145' 232,645 224,318? 11 Federal Home Loan Banks 54,131 55,967 48,930 52,281 54,799 57,%5 62,116 65,616 66,126 12 Federal Home Loan Mortgage Corporation 5,480 4,524 6,793 9,131 8,988 7,822 9,068 8,950 n.a. 13 Federal National Mortgage Association8 58,749 70,052 74,594 79,267 79,871 80,706 79,921 80,123 80,357 14 Farm Credit Banks 71,359 71,896 72,409 73,138 73,061 73,297 73,352' 73,131 72,859 15 Student Loan Marketing Association 421 1,591 3,050 3,9% 4,184 4,607 4,688 4,824' 5,143 MEMO 16 Federal Financing Bank debt 110,698 126,424 135,791 139,936 141,734 143,322 144,063 144,836 144,978 Lending to federal and federally sponsored 17 Export-Import Bank3 12,741 14,177 14,789 15,2% 15,556 15,563 15,563 15,690 15,690 18 Postal Service6 1,288 1,221 1,154 1,087 1,087 1,087 1,087 1,087 1,087 19 Student Loan Marketing Association 5,400 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 20 Tennessee Valley Authority 11,390 12,640 13,245 13,205 13,255 13,345 13,305 13,435 13,725 21 United States Railway Association6 202 194 111 111 51 51 51 51 51 Other Lending10 22 Farmers Home Administration 48,821 53,261 55,266 56,476 57,701 5588,,885566 5599,,119966 59,511 5599,,002211 23 Rural Electrification Administration 13,516 17,157 19,766 20,456 20,611 20,671 20,742 20,587 20,694 24 Other 12,740 22,774 26,460 28,305 28,473 28,749 29,119 29,475 29,710 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 Fanners 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • March 1985 1.45 NEW SECURITY ISSUES State and Local Governments Millions of dollars 1984 Type of issue or issuer, or use 11998811 11998822 11998833 Mar. Apr. May June July Aug. Sept. Oct. 1 All issues, new and refunding1 47,732 79,138 86,421 5,547 5,617 7,075 6,657 7,323 9,803 7,248 12,190 Type of issue 2 General obligation 12,394 21,094 21,566 2,500 2,291 2,373 1,885 1,940 1,864 1,627 3,697 3 U.S. government loans2 34 225 96 2 3 3 3 3 5 9 7 4 Revenue 35,338 58,044 64,855 3,047 3,326 4,702 4,772 5,383 7,939 5,621 8,493 5 U.S. government loans2 55 461 253 4 8 13 15 18 21 23 28 Type of issuer 6 State 5,288 8,438 7,140 584 886 497 447 457 691 589 1,109 7 Special district and statutory authority 27,499 45,060 51,297 3,069 2,866 3,767 3,996 5,002 6,913 4,772 7,024 8 Municipalities, counties, townships, school districts 14,945 25,640 27,984 1,894 1,865 2,811 2,214 1,864 2,199 1,887 4,057 9 Issues for new capital, total 46,530 74,804 72,441 4,740 4,485 5,972 6,067 6,433 8,830 7,134 10,891 Use of proceeds 10 Education 4,547 6,482 8,099 592 475 905 764 493 601 397 717 11 Transportation 3,447 6,256 4,387 56 517 403 658 100 402 576 1,015 12 Utilities and conservation 10,037 14,259 13,588 1,279 681 1,428 1,172 382 992 2,023 2,754 13 Social welfare 12,729 26,635 26,910 1,100 1,203 1,385 2,120 3,719 4,294 2,802 3,438 14 Industrial aid 7,651 8,349 7,821 132 358 374 354 859 907 561 1,397 15 Other purposes 8,119 12,822 11,637 1,581 1,251 1,477 999 880 1,634 775 1,570 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 Corporations Millions of dollars 1984 Type of issue or issuer, or use 11998811 11998822 11998833 Apr. May June July Aug. Sept. Oct. Nov. 1 All issues1-2 70,441 84,638 98,892r 6,070' 4,053' 7,284' 7,626' 10,898' 7,730' 12,179' 11,998 2 Bonds 45,092 54,076 47,313r 4,285' 2,244' 5,063' 6,294' 8,844' 6,197' 10,232 9,591 Type of offering 3 Public 38,103 44,278 47,313' 4,285' 2,244' 5,063' 6,294' 8,844' 6,197' 10,232 9,591 4 Private placement 6,989 9,798 21,126 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 12,325 12,822 7,842 691 383 1,440 950 2,484 1,594 2,989 1,429 6 Commercial and miscellaneous 5,229 5,442 5,186' 1,098' 221 536' 875' 776 576 988 1,348 7 Transportation 2,052 1,491 1,039 69 0 225 40 183 200 161 18 8 Public utility 8,963 12,327 7,241 495 100 475 650 765 758' 1,150 555 9 Communication 4,280 2,390 3,159 0 0 0 31 0 0 240 1,557 10 Real estate and financial 12,243 19,604 22,844' 1,932 1,540' 2,388' 3,748' 4,636' 3,068' 4,704 4,684 11 Stocks3 25,349 30,562 51,579 1,785 1,809 2,221 1,332 2,054 1,533 1,947' 2,407 Type 12 Preferred 1,797 5,113 7,213 339 579 244 209 334 155 555 655 13 Common 23,552 25,449 44,366 1,446 1,230 1,977 1,123 1,720 1,378 1,392' 1,752 Industry group 14 Manufacturing 5,074 5,649 14,135 165 442 584 204 258 212 712 227 15 Commercial and miscellaneous 7,557 7,770 13,112 732 718 316 382 558 378 489 1,025 16 Transportation 779 709 2,729 62 84 1 28 0 87 16 66 17 Public utility 5,577 7,517 5,001 188 116 282 136 44 92 146 150 18 Communication 1,778 2,227 1,822 94 16 11 0 123 9 69 3 19 Real estate and financial 4,584 6,690 14,780 544 433 1,027 582 1,071 755 515' 936 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, SOURCE. Securities and Exchange Commission and the Board of Governors of employee stock plans, investment companies other than closed-end, intracorpo- the Federal Reserve System. rate transactions, and sales to foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Market and Corporate Finance A35 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1984 IItteemm 11998822 11998833 Apr. May June July Aug. Sept. Oct/ Nov. INVESTMENT COMPANIES1 1 Sales of own shares2 45,675 84,793 9,549 8,657 8,397 7,550 9,018 8,215 9,580 9,524 2 Redemptions of own shares' 30,078 57,120 7,451 5,993 6,156 5,777 6,497 6,185 6,766 6,342 3 Net sales 15,597 27,673 2,098 2,664 2,241 1,773 2,521 2,030 2,814 3,182 4 Assets4 76,841 113,599 116,812 111.071 115,034 115,481 128,209 129.657 131,539 132,721 5 Cash position5 6,040 8,343 10,941 10,847 11,907 11,620 12,698 13,221 11,417 11,536 6 Other 70,801 105,256 105,871 100,224 103,127 103,861 115,511 116,436 120,122 121,185 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. 1982 1983 1984 AAccccoouunntt 11998811 11998822 11998833 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 189.9 159.1 225.2 151.6 179.1 216.7 245.0 260.0 277.4 291.1 282.8 2 Profits before tax 221.1 165.5 203.2 155.8 161.7 198.2 227.4 225.5 243.3 246.0 224.8 3 Profits tax liability 81.1 60.7 75.8 55.0 59.1 74.8 84.7 84.5 92.7 95.8 83.1 4 Profits after tax 140.0 104.8 127.4 100.8 102.6 123.4 142.6 141.1 150.6 150.2 141.7 5 Dividends 66.5 69.2 72.9 70.2 71.1 71.7 73.3 75.4 77.7 79.9 81.3 6 Undistributed profits 73.5 35.6 54.5 30.6 31.4 51.7 69.3 65.6 72.9 70.2 60.3 7 Inventory valuation -23.6 -9.5 -11.2 -12.6 -4.3 -12.1 -19.3 -9.2 -13.5 -7.3 -.2 8 Capital consumption adjustment -7.6 3.1 33.2 8.4 21.7 30.6 36.9 43.6 47.6 52.3 58.3 SOURCE. Survey of Current Business (Department of Commerce). 1.49 NONFINANCIAL CORPORATIONS Assets and Liabilities Billions of dollars, except for ratio 1983 1984 AAccccoouunntt 11997788 11997799 11998800 11998811 11998822 Q2 Q3 Q4 Ql Q2 1 Current assets 1,043.7 1,214.8 1,327.0 1,418.4 1,432.7 1,468.0 1,522.8 1,557.3 1,600.6 1,630.8 2 Cash 105.5 118.0 126.9 135.5 147.0 147.9 150.5 165.8 159.3 155.5 3 U.S. government securities 17.2 16.7 18.7 17.6 22.8 28.2 27.0 30.6 35.1 36.8 4 Notes and accounts receivable 388.0 459.0 506.8 532.0 519.2 539.3 565.0 577.8 596.9 612.6 5 Inventories 431.8 505.1 542.8 583.7 578.6 576.2 597.3 599.3 623.1 633.3 6 Other 101.1 116.0 131.8 149.5 165.2 176.4 183.0 183.7 186.3 192.5 7 Current liabilities 669.5 807.3 889.3 970.0 976.8 990.2 1,026.6 1,043.0 1,079.0 1,111.5 8 Notes and accounts payable 383.0 460.8 513.6 546.3 543.0 536.6 559.4 577.9 584.1 606.0 9 Other 286.5 346.5 375.7 423.7 433.8 453.6 467.2 465.2 495.0 505.5 10 Net working capital 374.3 407.5 437.8 448.4 455.9 477.8 496.3 514.3 521.6 519.3 11 MEMO: Current ratio1 1.559 1.505 1.492 1.462 1.467 1.483 1.483 1.493 1.483 1.467 1. Ratio of total current assets to total current liabilities. Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. NOTE. For a description of this series, see "Working Capital of Nonfinancial 20551. Corporations" in the July 1978 BULLETIN, pp. 533-37. SOURCE. Federal Trade Commission and Bureau of the Census. 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 DomesticN onfinancial Statistics • March 1985 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1983 1984 IInndduussttrryy11 11998822 11998833 11998844 QL Q2 Q3 Q4 QL Q2 Q3 Q41 1 Total nonfarm business 282.71 269.22 307.59 261.71 261.16 270.05 283.96 293.15 302.70 313.11 321.40 Manufacturing 2 Durable goods industries 56.44 51.78 63.02 50.74 48.48 53.06 54.85 58.94 60.20 65.44 67.49 3 Nondurable goods industries 63.23 59.75 67.99 59.12 60.31 58.06 61.50 63.84 67.46 69.06 71.60 Nonmanufacturing 4 Mining 15.45 11.83 12.90 12.03 10.91 11.93 12.43 13.95 12.13 12.61 12.92 Transportation 5 Railroad 4.38 3.92 5.32 3.35 3.64 4.07 4.63 4.41 5.64 5.80 5.41 6 Air 3.93 3.77 3.02 4.09 4.10 3.57 3.32 2.77 2.98 3.16 3.18 7 Other 3.64 3.50 4.57 3.60 3.14 3.36 3.91 4.28 4.33 4.69 4.98 Public utilities 8 Electric 33.40 34.99 34.72 33.97 34.86 35.84 35.31 35.74 35.30 34.64 33.19 9 Gas and other 8.55 7.00 9.45 7.64 6.62 6.38 7.37 7.87 9.30 10.11 10.51 10 Commercial and other2 93.68 92.67 106.61 87.17 89.10 93.79 100.62 101.35 105.35 107.61 112.12 •Trade and services are no longer being reported separately. They are included 2. "Other" consists of construction; wholesale and retail trade; finance and in Commercial and other, line 10. insurance; personal and business services; and communication. 1. Anticipated by business. SOURCE. Survey of Current Business (Department of Commerce). 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1983 1984 AAccccoouunntt 11997788 11997799 11998800 11998811 11998822 Q3 Q4 Ql Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 52.6 65.7 73.6 85.5 89.5 92.3 92.8 96.9 99.6 103.4 2 Business 63.3 70.3 72.3 80.6 81.0 86.8 95.2 101.1 104.2 103.2 3 Total 116.0 136.0 145.9 166.1 170.4 179.0 188.0 198.0 203.8 206.6 4 LESS: Reserves for unearned income and losses.... 15.6 20.0 23.3 28.9 30.5 30.1 30.6 31.9 33.4 34.7 5 Accounts receivable, net 100.4 116.0 122.6 137.2 139.8 148.9 157.4 166.1 170.4 171.9 6 Cash and bank deposits 3.5 1 7 Securities 1.3 ^ 24.9' 27.5 34.2 39.7 45.0 45.3 47.1 48.1 49.1 8 All other 17.3 J 9 Total assets 122.4 140.9 150.1 171.4 179.5 193.9 202.7 213.2 218.5 220.9 LIABILITIES 10 Bank loans 6.5 8.5 13.2 15.4 18.6 17.0 19.1 14.7 15.3 16.0 11 Commercial paper 34.5 43.3 43.4 51.2 45.8 49.7 53.6 58.4 62.0 60.1 Debt 12 Short-term, n.e.c 8.1 8.2 7.5 9.6 8.7 8.7 11.3 12.2 15.0 15.1 13 Long-term, n.e.c 43.6 46.7 52.4 54.8 63.5 66.2 65.4 68.7 67.6 71.2 14 Other 12.6 14.2 14.3 17.8 18.7 24.4 27.1 29.8 29.0 29.2 15 Capital, surplus, and undivided profits 17.2 19.9 19.4 22.8 24.2 27.9 26.2 29.4 29.6 29.2 16 Total liabilities and capital 122.4 140.9 150.1 171.4 179.5 193.9 202.7 213.2 218.5 220.9 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. These data also appear in the Board's G.20 (422) release. For address, see NOTE. Components may not add to totals due to rounding. inside front cover. 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 1984 1984 1984 NNNooovvv... 333000,,, 111999888444''' Sept. Oct. Nov. Sept. Oct. Nov. Sept. Oct. Nov. 1 Total 108,166 -203 1,215 1,453 22,676 28,346 28,469 22,879 27,131 27,016 2 Retail automotive (commercial vehicles) 26,574 21 257 381 1,840 2,097 2,261 1,819 11,,884400 1,880 3 Wholesale automotive 16,824 -1,429 971 825 6,050 9,860 8,811 7,479 88,,888899 7,986 4 Retail paper on business, industrial, and farm equipment 31,439 554 -564 78 1,493 1,064 1,537 939 1,628 1,459 5 Loans on commercial accounts receivable and factored commercial accounts receivable 11,015 124 9 -84 10,815 12,441 12,861 10,691 12,432 12,945 6 All other business credit 22,314 527 542 253 2,478 2,884 2,999 1,951 2,342 2,746 1. Not seasonally adjusted. NOTE. These data also appear in the Board's G.20 (422) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A37 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1984 IItteemm 11998811 11998822 11998833 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 90.4 94.6 92.8 93.4 98.3 94.3 97.4 98.4 99.5' 100.2 2 Amount of loan (thousands of dollars) 65.3 69.8 69.5 72.5 74.6 71.8 72.5 74.0 15.2' 75.2 3 Loan/price ratio (percent) 74.8 76.6 77.1 79.9 78.4 78.1 77.3 78.2 77.9' 77.9 4 Maturity (years) 27.7 27.6 26.7 28.1 28.2 28.0 27.6 27.6 27.5' 28.0 5 Fees and charges (percent of loan amount)2 2.67 2.95 2.40 2.58 3.07 2.82 2.63 2.58 2.54' 2.59 6 Contract rate (percent per annum) 14.16 14.47 12.20 11.61 11.91 11.89 12.03 12.27 12.27' 12.05 Yield (percent per annum) 7 FHLBB series5 14.74 15.12 12.66 12.10 12.50 12.43 12.53 12.77 12.75' 12.54 8 HUD series4 16.52 15.79 13.43 14.65 14.53 14.24 13.98 13.59 13.20 13.05 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 16.31 15.30 13.11 14.91 14.58 14.21 13.99 13.43 12.90 12.99 10 GNMA securities6 15.29 14.68 12.25 14.14 13.88 13.56 13.36 13.09 12.71 12.54 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 58,675 66,031 74,847 83,243 83,858 84,193 84,851 85,539 86,416 12 FHA/VA-insured 39,341 39,718 37,393 35,153 35,049 34,938 34,844 34,791 34,752 13 Conventional 19,334 26,312 37,454 48,090 48,809 49,255 50,006 50,749 51,664 Mortgage transactions (during period) 14 Purchases 6,112 15,116 17,554 1,209 1,226 820 1,145 1,087 1,297 n a. 15 Sales 1 2 3,528 0 0 0 0 0 0 Mortgage commitments1 16 Contracted (during period) 9,331 22,105 18,607 1,995 1,976 1,227 1,142 1,638 2,150 17 Outstanding (end of period) 3,717 7,606 5,461 5,640 6,281 6,332 6,235 6,656 5,916 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)s 18 Total 5,231 5,131 5,996 9,478 9,154 9,331 9,447 9,726 9,900 19 FHA/VA 1,065 1,027 974 912 906 901 896 891 886 20 Conventional 4,166 4,102 5,022 8,566 8,248 8,431 8,551 8,835 9,014 Mortgage transactions (during period) 21 Purchases 3,800 23,673 23,089 2,204 1,288 1,821 1,262 2,864 2,241 n.a. 22 Sales 3,531 24,170 19,686 1,854 1,573 1,570 1,137 2,573 1,961 Mortgage commitments9 23 Contracted (during period) 6,896 28,179 32,852 2,712 3,929 3,130 3,440 2,663 4,158 24 Outstanding (end of period) 3,518 7,549 16,964 19,649 22,311 23,639 22,013 25,676 27,550 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associamajor institutional lender groups; compiled by the Federal Home Loan Bank tion guaranteed, mortgage-backed, fully modified pass-through securities, assum- Board in cooperation with the Federal Deposit Insurance Corporation. ing prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the 2. Includes all fees, commissions, discounts, and "points" paid (by 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; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. Any gaps in data are due to periods of adjustment to changes in securities swap programs, while the corresponding data for FNMA exclude swap maximum permissible contract rates. activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • March 1985 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1983 1984 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998811 11998822 11998833 Q3 Q4 Ql Q2 Q3 1 All holders 1,583,264 1,655,036 1,826,395 1,775,116 1,826,395 1,869,442 1,926,578 1,982,641 2 1- to 4-family 1,065,294 1,105,717 1,214,592 1,182,071 1,214,592 1,244,157 1,278,575 1,314,134 3 Multifamily 136,354 140,551 150,949 147,052 150,949 154,338 158,835 162,582 4 Commercial 279,889 302,055 351,287 336,981 351,287 360,888 378,218 394,243 5 Farm 101,727 106,713 109,567 109,012 109,567 110,059 110,950 111,682 6 Major financial institutions 1,040,827 1,023,611 1,109,963 1,079,604 1,109,963 1,136,168 1,179,553 1,219,737 1 Commercial banks1 284,536 300,203 328,878 320,299 328,878 338,877 351,459 364,540 8 1 - to 4-family 170,013 173,157 181,672 178,054 181,672 184,925 189,718 195,029 9 Multifamily 15,132 16,421 18,023 17,424 18,023 19,689 20,455 21,326 10 Commercial 91,026 102,219 119,843 115,692 119,843 124,571 131,235 137,796 11 Farm 8,365 8,406 9,340 9,129 9,340 9,692 10,051 10,389 12 Mutual savings banks 99,997 97,805 136,054 129,644 136,054 143,180 147,517 155,115 13 1- to 4-family 68,187 66,777 96,569 92,182 96,569 101,868 105,063 110,528 14 Multifamily 15,960 15,305 17,785 17,588 17,785 18,441 18,752 19,566 IS Commercial 15,810 15,694 21,671 19,846 21,671 22,841 23,672 24,990 16 Farm 40 29 29 28 29 30 30 31 17 Savings and loan associations 518,547 483,614 493,432 482,305 493,432 502,143 526,732 544,280 18 1- to 4-family 433,142 393,323 389,811 381,744 389,811 395,940 412,958 424,539 19 Multifamily 37,699 38,979 42,435 41,334 42,435 43,435 45,299 46,808 20 Commercial 47,706 51,312 61,186 59,227 61,186 62,768 68,475 72,933 21 Life insurance companies 137,747 141,989 151,599 147,356 151,599 151,968 153,845 155,802 22 1- to 4-family 17,201 16,751 15,385 15,534 15,385 14,971 14,437 14,204 23 Multifamily 19,283 18,856 19,189 18,857 19,189 19,153 19,028 18,828 24 Commercial 88,163 93,547 104,279 100,209 104,279 105,270 107,796 110,149 25 Farm 13,100 12,835 12,746 12,756 12,746 12,574 12,584 12,621 26 Federal and related agencies 126,094 138,138 147,370 142,224 147,370 150,784 152,669 153,407 2V Government National Mortgage Association 4,765 4,227 3,395 3,475 3,395 2,900 2,715 2,389 28 1- to 4-family 693 676 630 639 630 618 605 594 29 Multifamily 4,072 3,551 2,765 2,836 2,765 2,282 2,110 1,795 30 Farmers Home Administration 2,235 1,786 2,141 600 2,141 2,094 1,344 738 31 1- to 4-family 914 783 1,159 211 1,159 1,005 281 206 32 Multifamily 473 218 173 32 173 303 463 126 33 Commercial 506 377 409 113 409 319 81 113 34 Farm 342 408 400 244 400 467 519 293 35 Federal Housing and Veterans Administration 5,999 5,228 4,894 5,050 4,894 4,832 4,753 4,801 36 1- to 4-family 2,289 1,980 1,893 2,061 1,893 1,956 1,894 1,967 3/ Multifamily 3,710 3,248 3,001 2,989 3,001 2,876 2,859 2,834 38 Federal National Mortgage Association 61,412 71,814 78,256 75,174 78,256 80,975 83,243 84,850 39 1- to 4-family 55,986 66,500 73,045 69,938 73,045 75,770 77,633 79,175 40 Multifamily 5,426 5,314 5,211 5,236 5,211 5,205 5,610 5,675 41 Federal Land Banks 46,446 50,350 51,052 51,069 51,052 51,004 51,136 51,182 42 1- to 4-family 2,788 3,068 3,000 3,008 3,000 2,982 2,958 2,954 43 Farm 43,658 47,282 48,052 48,061 48,052 48,022 48,178 48,228 44 Federal Home Loan Mortgage Corporation 5,237 4,733 7,632 6,856 7,632 8,979 9,478 9,447 45 1- to 4-family 5,181 4,686 7,559 6,799 7,559 8,847 8,931 8,841 46 Multifamily 56 47 73 57 73 132 547 606 47 Mortgage pools or trusts2 163,000 216,654 285,073 272,611 285,073 296,481 305,051 317,548 48 Government National Mortgage Association 105,790 118,940 159,850 151,597 159,850 166,261 170,893 175,770 49 1- to 4-family 103,007 115,831 155,801 147,761 155,801 161,943 166,415 171,095 50 Multifamily 2,783 3,109 4,049 3,836 4,049 4,318 4,478 4,675 51 Federal Home Loan Mortgage Corporation 19,853 42,964 57,895 54,152 57,895 59,376 61,267 63,964 52 1- to 4-family 19,501 42,560 57,273 53,539 57,273 58,776 60,636 63,352 53 Multifamily 352 404 622 613 622 600 631 612 54 Federal National Mortgage Association3 717 14,450 25,121 23,819 25,121 28,354 29,256 32,888 55 1- to 4-family 717 14,450 25,121 23,819 25,121 28,354 29,256 32,730 56 Multifamily n.a. n.a. n.a. n.a. n.a. n.a. n.a. 158 57 Farmers Home Administration 36,640 40,300 42,207 43,043 42,207 42,490 43,635 44,926 58 1- to 4-family 18,378 20,005 20,404 21,083 20,404 20,573 21,331 21,595 59 Multifamily 3,426 4,344 5,090 5,042 5,090 5,081 5,081 5,618 60 Commercial 6,161 7,011 7,351 7,542 7,351 7,456 7,764 7,844 61 Farm 8,675 8,940 9,362 9,376 9,362 9,380 9,459 9,869 62 Individual and others4 253,343 276,633 283,989 280,677 283,989 286,009 289,305 291,949 63 1- to 4-family5 167,297 185,170 185,270 185,699 185,270 185,629 186,459 187,325 64 Multifamily 27,982 30,755 32,533 31,208 32,533 32,823 33,522 33,955 65 Commercial 30,517 31,895 36,548 34,352 36,548 37,663 39,195 40,418 66 Farm 27,547 28,813 29,638 29,418 29,638 29,894 30,129 30,251 1. Includes loans held by nondeposit trust companies but not bank trust 5. Includes estimate of residential mortgage credit provided by individuals. departments. NOTE. Based on data from various institutional and governmental sources, with 2. Outstanding principal balances of mortgages backing securities insured or some quarters estimated in part by the Federal Reserve in conjunction with the guaranteed by the agency indicated. Federal Home Loan Bank Board and the Department of Commerce. Separation of 3. Outstanding balances on FNMA's issues of securities backed by pools of nonfarm mortgage debt by type of property, if not reported directly, and conventional mortgages held in trust. Implemented by FNMA in October 1981. interpolations and extrapolations when required, are estimated mainly by the 4. Other holders include mortgage companies, real estate investment trusts, Federal Reserve. Multifamily debt refers to loans on structures of five or more state and local credit agencies, state and local retirement funds, noninsured units. pension funds, credit unions, and U.S. agencies for which amounts are small or for which separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Installment Credit A39 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1984 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998811 11998822 11998833 Apr. May June July Aug. Sept. Oct. Nov. Amounts outstanding (end of period) 1 Total 335,691 355,849 396,082 407,671 418,080 427,565 435,367 443,537 450,131 455,318 463,516 By major holder 2 Commercial banks 147,622 152,490 171,978 181,022 186,668 191,519 195,265 199,654 202,452 204,582 206,635 3 Finance companies .... 89,818 98,693 102,862 101,119 102,967 104,460 106,219 106,881 108,437 109,289 111,196 4 Credit unions 45,953 47,253 53,471 56,962 58,517 59,893 61,151 62,679 63,808 64,716 66,528 5 Retailers2 31,348 32,735 35,911 33,327 33,730 34,206 34,022 34,294 34,426 34,802 36,000 6 Savings and loans 12,410 15,823 21,615 23,957 24,915 25,837 26,767 27,918 28,868 29,756 30,857 7 Gasoline companies ... 4,403 4,063 4,131 3,955 4,020 4,289 4,472 4,452 4,328 4,205 4,132 8 Mutual savings banks .. 4,137 4,792 6,114 7,329 7,263 7,361 7,471 7,659 7,812 7,968 8,168 By major type of credit 9 Automobile 125,331 131,086 142,449 147,944 152,225 155,937 159,649 162,038 164,361 166,028 168,095 10 Commercial banks... 58,081 59,555 67,557 73,016 75,787 78,018 80,103 81,786 82,706 83,620 84,326 11 Indirect paper 34,375 34,755 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Direct loans 23,706 23,472 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Credit unions 21,975 22,596 25,574 27,244 27,988 28,646 29,248 29,979 30,519 30,953 31,820 14 Finance companies .. 45,275 48,935 49,318 47,684 48,450 49,273 50,298 50,273 51,136 51,455 51,949 15 Revolving 64,500 69,998 80,823 80,184 82,436 84,598 85,588 87,788 89,742 91,017 93,468 16 Commercial banks... 32,880 36,666 44,184 46,149 47,936 49,374 50,358 52,313 54,258 55,276 56,641 17 Retailers 27,217 29,269 32,508 30,080 30,480 30,935 30,758 31,023 31,156 31,536 32,695 18 Gasoline companies . 4,403 4,063 4,131 3,955 4,020 4,289 4,472 4,452 4,328 4,205 4,132 19 Mobile home 17,958 22,254 23,680 23,850 24,104 24,427 24,751 25,178 25,482 25,484 25,686 20 Commercial banks... 10,187 9,605 9,842 9,580 9,573 9,621 9,681 9,711 9,761 9,627 9,613 21 Finance companies .. 4,494 9,003 9,365 9,361 9,434 9,528 9,612 9,786 9,857 9,890 9,892 22 Savings and loans ... 2,788 3,143 3,906 4,306 4,478 4,644 4,811 5,018 5,189 5,282 5,477 23 Credit unions 489 503 567 603 619 634 647 663 675 685 704 24 Other 127,903 132,511 149,130 155,693 159,315 162,603 165,379 168,533 170,546 172,789 176,267 25 Commercial banks... 46,474 46,664 50,395 52,277 53,372 54,506 55,123 55,844 55,727 56,059 56,055 26 Finance companies .. 40,049 40,755 44,179 44,074 45,083 45,659 46,309 46,822 47,444 47,944 49,355 27 Credit unions 23,490 24,154 27,330 29,115 29,910 30,613 31,256 32,037 32,614 33,078 34,004 28 Retailers 4,131 3,466 3,403 3,247 3,250 3,271 3,264 3,271 3,270 3,266 3,305 29 Savings and loans ... 9,622 12,680 17,709 19,651 20,437 21,193 21,956 22,900 23,679 24,474 25,380 30 Mutual savings banks 4,137 4,792 6,114 7,329 7,263 7,361 7,471 7,659 7,812 7,968 8,168 Net change (during period)3 31 Total 18,217 17,886 40,233 6,408 10,233 7,825 7,106 5,998 4,283 6,275 7,950 By major holder 32 Commercial banks 607 4,442 19,488 4,015 6,065 3,835 3,192 2,631 1,384 2,756 2,483 33 Finance companies 13,062 4,504 4,169 -350 1,304 1,353 1,402 1,111 1,204 1,191 1,718 34 Credit unions 1,913 1,298 6,218 1,529 1,453 962 1,566 844 686 1,216 1,990 35 Retailers2 1,103 651 3,176 278 476 471 -101 206 132 103 336 36 Savings and loans 1,682 2,290 5,792 868 979 1,069 847 1,124 769 823 1,143 37 Gasoline companies ... -65 -340 68 2 46 89 -40 -51 -135 90 102 38 Mutual savings banks .. -85 251 1,322 66 -90 46 240 133 243 96 178 By major type of credit 39 Automobile 8,495 4,898 11,363 2,158 3,689 2,897 3,422 1,777 1,317 2,357 2,724 40 Commercial banks... -3,455 -9 8,002 1,766 2,807 1,907 1,852 1,150 434 1,057 1,019 41 Indirect paper -858 225 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 42 Direct loans -2,597 -234 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 43 Credit unions 914 622 2,978 734 695 461 750 405 327 581 955 44 Finance companies .. 11,033 3,505 329 -342 187 529 820 222 556 719 750 45 Revolving 4,467 4,365 10,825 1,868 2,817 1,569 640 1,314 1,324 1,496 1,714 46 Commercial banks... 3,115 3,808 7,518 1,568 2,298 1,047 764 1,159 1,323 1,279 1,289 47 Retailers 1,417 897 3,239 298 473 433 -84 206 136 127 323 48 Gasoline companies . -65 -340 68 2 46 89 -40 -51 -135 90 102 49 Mobile home 1,049 609 1,426 285 302 454 462 573 318 -216 -29 50 Commercial banks... -186 -508 237 27 -50 10 31 4 4 -91 -1 51 Finance companies .. 749 471 430 110 156 258 185 346 150 -210 -232 52 Savings and loans ... 466 633 763 132 183 174 230 214 157 72 184 53 Credit unions 20 14 64 16 13 12 16 9 7 13 20 54 Other 4,206 3,224 16,619 2,097 3,425 2,905 2,582 2,334 1,324 2,638 3,541 55 Commercial banks... 1,133 372 3,731 653 1,010 871 545 318 -377 511 176 56 Finance companies .. 1,280 528 3,424 -118 961 566 397 543 498 682 1,200 57 Credit unions 975 662 3,176 780 745 489 800 430 352 622 1,015 58 Retailers -314 -246 -63 -20 3 38 -17 0 -4 -24 13 59 Savings and loans ... 1,217 1,657 5,029 735 796 895 617 910 612 751 959 60 Mutual savings banks -85 251 1,322 66 -90 46 240 133 243 96 178 • These data have been revised from July 1979 through February 1984. 3. 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, NOTE. Total consumer noninstallment credit outstanding—credit scheduled to and scheduled to be repaid (or with the option of repayment) in two or more be repaid in a lump sum, including single-payment loans, charge accounts, and installments. service credit—amounted to, not seasonally adjusted, $80.7 billion at the end of 2. Includes auto dealers and excludes 30-day charge credit held by travel and 1981, $85.9 billion at the end of 1982, and $96.9 billion at the end of 1983. entertainment companies. These data also appear in the Board's G.19 (421) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • March 1985 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT Percent unless noted otherwise 1984 IItteemm 11998811 11998822 11998833 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks1 1 16.54 16.83 13.92 13.53 14.08 13.91 18.09 18.65 16.68 16.35 16.75 16.63 3 17.45 18.05 15.91 15.54 15.72 15.60 4 1177..7788 1188..5511 1188..7733 1188..7711 1188..8811 1188..8822 Auto finance companies 5 New car 16.17 16.15 12.58 14.17 14.33 14.68 15.01 15.16 15.18 15.24 6 Used car 20.00 20.75 18.74 17.60 17.64 17.77 17.99 18.10 18.19 18.30 OTHER TERMS3 Maturity (months) 7 New car 45.4 46.0 45.9 47.7 48.2 48.6 49.2 49.5 49.7 50.0 8 Used car 35.8 34.0 37.9 39.7 39.8 39.8 39.8 39.9 39.9 39.0 Loan-to-value ratio 9 New car 86.1 85.3 86.0 88 88 88 88 89 88 89 10 Used car 91.8 90.3 92.0 92 92 92 93 93 93 93 Amount financed (dollars) 11 New car 7,339 8,178 8,787 9,262 9,311 9,377 9,409 9,402 9,449 9,577 12 Used car 4,343 4,746 5,033 5,675 5,774 5,763 5,753 5,792 5,826 5,900 1. Data for midmonth of quarter only. NOTE. These data also appear in the Board's G.19 (421) release. For address, 2. Before 1983 the maturity for new car loans was 36 months, and for mobile see inside front cover, home loans was 84 months. 3. At auto finance companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1981 1982 1983 1984 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997788 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 369.8 386.0 344.6 380.4 404.1 526.4 368.0 358.1 450.1 448.9 563.8 688.2 By sector and instrument 2 U.S. government 53.7 37.4 79.2 87.4 161.3 186.6 88.1 104.1 218.4 222.0 151.1 172.8 3 Treasury securities 55.1 38.8 79.8 87.8 162.1 186.7 88.5 105.5 218.8 222.1 151.2 173.1 4 Agency issues and mortgages -1.4 -1.4 -.6 -.5 -.9 -.1 -.4 -1.4 -.4 -.1 -.1 -.2 Private domestic nonfinancial sectors 316.2 348.6 265.4 293.1 242.8 339.8 279.9 254.0 231.7 266.9 412.7 515.4 6 Debt capital instruments 199.7 211.2 192.0 159.1 158.9 239.3 140.3 140.7 177.2 214.4 264.2 268.5 7 Tax-exempt obligations 28.4 30.3 30.3 22.7 53.8 56.3 24.7 43.9 63.7 62.8 49.7 38.1 8 Corporate bonds 21.1 17.3 26.7 21.8 18.7 15.7 16.8 12.0 25.3 23.0 8.4 24.0 9 Mortgages 150.2 163.6 135.1 114.6 86.5 167.3 98.8 84.8 88.2 128.6 206.0 206.4 10 Home mortgages 112.2 120.0 96.7 76.0 52.5 108.7 62.3 53.6 51.3 83.8 133.6 132.5 11 Multifamily residential 9.2 7.8 8.8 4.3 5.5 8.4 3.8 5.1 5.8 2.8 13.9 16.6 17 Commercial 21.7 23.9 20.2 24.6 23.6 47.3 22.9 19.7 27.5 40.3 54.3 55.3 13 Farm 7.2 11.8 9.3 9.7 5.0 2.9 9.8 6.5 3.5 1.6 4.1 2.1 14 Other debt instruments 116.5 137.5 73.4 134.0 83.9 100.5 139.6 113.2 54.6 52.5 148.5 246.9 15 Consumer credit 48.8 45.4 6.3 26.7 21.0 51.3 21.9 20.6 21.4 35.9 66.6 101.4 16 Bank loans n.e.c 37.4 51.2 36.7 54.7 55.5 27.3 65.1 69.0 42.0 13.3 41.2 91.6 17 Open market paper 5.2 11.1 5.7 19.2 -4.1 -1.2 24.1 10.0 -18.2 -10.6 8.3 31.5 18 Other 25.1 29.7 24.8 33.4 11.5 23.1 28.6 13.6 9.4 13.9 32.3 22.4 19 By borrowing sector 316.2 348.6 265.4 293.1 242.8 339.8 279.9 254.0 231.7 266.9 412.7 515.4 20 State and local governments 16.5 17.6 17.2 6.2 31.3 36.7 7.3 24.1 38.5 41.9 31.6 19.0 71 Households 172.0 179.3 122.1 127.5 94.5 175.4 113.1 94.7 94.3 134.8 216.0 231.3 ?? Farm 14.6 21.4 14.4 16.3 7.6 4.3 12.2 9.6 5.6 .8 7.9 .7 23 Nonfarm noncorporate 32.4 34.4 33.7 40.2 39.5 63.9 38.7 36.6 42.3 50.1 77.6 82.8 24 Corporate 80.6 96.0 78.1 102.9 70.0 59.5 108.7 89.0 51.0 39.3 79.6 181.5 25 Foreign net borrowing in United States 33.8 20.2 27.2 27.2 15.7 18.9 24.4 10.2 21.2 15.3 22.5 18.8 76 Bonds 4.2 3.9 .8 5.4 6.7 3.8 7.6 2.4 11.0 4.6 2.9 1.1 77 Bank loans n.e.c 19.1 2.3 11.5 3.7 -6.2 4.9 6.2 -7.6 -4.7 11.3 -1.5 -7.0 28 Open market paper 6.6 11.2 10.1 13.9 10.7 6.0 7.1 12.5 9.0 -4.6 16.5 18.9 29 U.S. government loans 3.9 2.9 4.7 4.2 4.5 4.3 3.5 3.0 6.0 3.9 4.6 5.8 30 Total domestic plus foreign 403.6 406.2 371.8 407.6 419.8 545.3 392.4 368.3 471.4 504.2 586.3 707.0 Financial sectors 31 Total net borrowing by financial sectors 74.1 82.4 62.9 84.1 69.0 90.7 83.9 84.2 53.8 74.0 107.3 121.0 By instrument 32 U.S. government related 37.1 47.9 44.8 47.4 64.9 67.8 50.9 60.0 69.7 66.2 69.4 69.1 33 Sponsored credit agency securities 23.1 24.3 24.4 30.5 14.9 1.4 33.2 22.4 7.5 -4.1 6.9 30.8 34 Mortgage pool securities 13.6 23.1 19.2 15.0 49.5 66.4 15.3 36.8 62.2 70.3 62.5 38.3 35 .4 .6 1.2 1.9 .4 2.4 .8 16 Private financial sectors 37.0 34.5 18.1 36.7 4.1 22.9 33.0 24.2 -16.0 7.8 38.0 51.9 37 Corporate bonds 7.5 7.8 7.1 -.8 2.5 17.1 -1.2 -2.5 7.6 15.2 18.9 14.9 38 Mortgages .1 -.1 -.5 .1 * -.2 ..11 .1 * * * 39 Bank loans n.e.c 2.3 -.5 -.9 .9 1.9 -.2 -.1 33..22 .6 -2.5 2.2 .1 40 Open market paper 14.6 18.0 4.8 20.9 -1.2 13.0 19.5 12.3 -14.7 7.2 18.8 21.1 41 Loans from Federal Home Loan Banks 12.5 9.2 7.1 16.2 .8 -7.0 15.1 11.1 -9.5 -12.1 -2.0 15.7 By sector 42 Sponsored credit agencies 23.5 24.8 25.6 32.4 15.3 1.4 35.6 23.2 7.5 -4.1 6.9 30.8 43 Mortgage pools 13.6 23.1 19.2 15.0 49.5 66.4 15.3 36.8 62.2 70.3 62.5 38.3 44 Private financial sectors 37.0 34.5 18.1 36.7 4.1 22.9 33.0 24.2 -16.0 7.8 38.0 51.9 45 Commercial banks 1.3 1.6 .5 .4 1.2 .5 .5 .7 1.7 .8 .2 4.8 46 Bank affiliates 7.2 6.5 6.9 8.3 1.9 8.6 9.7 9.7 -5.8 6.1 11.1 20.0 47 Savings and loan associations 13.5 12.6 7.4 15.5 2.5 -2.7 13.7 14.3 -9.3 -10.0 4.5 17.8 48 Finance companies 17.6 16.5 5.8 12.8 -.9 17.0 9.4 * -1.9 11.4 22.7 9.9 49 REITs -1.4 -1.3 -2.2 .2 .1 .2 .2 .1 .1 .2 .2 .1 All sectors 50 Total net borrowing 477.7 488.7 434.7 491.8 488.8 635.9 476.3 452.5 525.1 578.2 693.6 828.0 51 U.S. government securities 90.5 84.8 122.9 133.0 225.9 254.4 136.7 163.5 288.3 288.4 220.5 242.1 57, State and local obligations 28.4 30.3 30.3 22.7 53.8 56.3 24.7 43.9 63.7 62.8 49.7 38.1 53 Corporate and foreign bonds 32.8 29.0 34.6 26.4 27.8 36.5 23.2 11.8 43.8 42.8 30.3 40.0 54 Mortgages 150.2 163.5 134.9 113.9 86.5 167.2 98.5 84.8 88.2 128.5 206.0 206.3 55 Consumer credit 48.8 45.4 6.3 26.7 21.0 51.3 21.9 20.6 21.4 35.9 66.6 101.4 56 Bank loans n.e.c 58.8 52.9 47.3 59.3 51.2 32.0 71.2 64.6 37.9 22.1 41.9 84.8 57 Open market paper 26.4 40.3 20.6 54.0 5.4 17.8 50.7 34.8 -23.9 -8.0 43.6 71.5 58 Other loans 41.9 42.4 37.8 55.8 17.2 20.3 49.5 28.5 5.9 5.7 35.0 43.9 External corporate equity funds raised in United States 59 Total new share issues 1.9 -3.8 22.2 -4.1 35.3 67.8 -17.4 23.3 47.2 83.5 52.0 -37.5 60 Mutual funds -.1 .1 5.2 6.3 18.4 32.8 5.7 12.5 24.3 36.8 28.9 44.8 61 All other 1.9 -3.9 17.1 -10.4 16.9 34.9 -23.0 10.9 22.9 46.8 23.1 -82.3 62 Nonfinancial corporations -.1 -7.8 12.9 -11.5 11.4 28.3 -23.8 7.0 15.8 38.2 18.4 -84.5 63 Financial corporations 2.5 3.2 2.1 .8 4.0 2.7 1.1 3.9 4.1 2.8 2.5 2.9 64 Foreign shares purchased in United States -.5 .8 2.1 .3 1.5 4.0 -.4 -.1 3.0 5.7 2.2 -.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • March 1985 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. 1981 1982 1983 1984 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997788 11997799 11998800 11998811 11998822 11998833 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to domestic nonfinancial sectors 369.8 386.0 344.6 380.4 404.1 526.4 368.0 358.1 450.1 488.9 563.8 688.2 By public agencies and foreign 2 Total net advances 102.3 75.2 97.0 97.7 109.1 117.1 90.3 100.8 117.3 119.7 114.6 124.0 3 U.S. government securities 36.1 -6.3 15.7 17.2 18.0 27.6 12.4 9.7 26.2 40.5 14.6 33.3 4 Residential mortgages 25.7 35.8 31.7 23.5 61.0 76.1 25.5 47.6 74.4 80.1 72.0 52.0 5 FHLB advances to savings and loans 12.5 9.2 7.1 16.2 .8 -7.0 15.1 11.1 -9.5 -12.1 -2.0 15.7 6 Other loans and securities 28.0 36.5 42.4 40.9 29.3 20.5 37.3 32.4 26.2 11.1 29.9 23.0 Total advanced, by sector 7 U.S. government 17.1 19.0 23.7 24.1 16.0 9.7 19.8 14.8 17.1 9.1 10.3 6.7 8 Sponsored credit agencies 40.3 53.0 45.6 48.2 65.3 69.5 50.1 61.8 68.7 68.2 70.7 73.0 9 Monetary authorities 7.0 7.7 4.5 9.2 9.8 10.9 14.1 3.8 15.7 15.6 6.2 17.3 10 Foreign 38.0 -4.6 23.2 16.3 18.1 27.1 6.3 20.4 15.8 26.8 27.4 27.0 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 37.1 47.9 44.8 47.4 64.9 67.8 50.9 60.0 69.7 66.2 69.4 69.1 12 Foreign 33.8 20.2 27.2 27.2 15.7 18.9 24.4 10.2 21.2 15.3 22.5 18.8 Private domestic funds advanced 13 Total net advances 338.4 379.0 319.6 357.3 375.6 495.9 353.0 327.5 423.8 450.8 541.1 652.2 14 U.S. government securities 54.3 91.1 107.2 115.8 207.9 226.9 124.3 153.7 262.0 247.8 205.9 208.8 15 State and local obligations 28.4 30.3 30.3 22.7 53.8 56.3 24.7 43.9 63.7 62.8 49.7 38.1 16 Corporate and foreign bonds 23.4 18.5 19.3 18.8 14.8 14.6 15.9 -.1 29.6 22.9 6.3 18.2 17 Residential mortgages 95.6 91.9 73.7 56.7 -3.2 40.9 40.6 11.0 -17.4 6.4 75.5 97.0 18 Other mortgages and loans 149.3 156.3 96.2 159.5 103.2 150.2 162.7 130.2 76.3 98.7 201.7 305.9 19 LESS: Federal Home Loan Bank advances 12.5 9.2 7.1 16.2 .8 -7.0 15.1 11.1 -9.5 -12.1 -2.0 15.7 Private financial intermediation 20 Credit market funds advanced by private financial institutions 315.7 313.9 281.5 323.4 285.6 376.7 323.2 274.4 296.7 323.2 430.1 521.3 21 Commercial banking 128.5 123.1 100.6 102.3 107.2 136.1 112.7 99.9 114.5 121.6 150.6 193.2 22 Savings institutions 72.3 56.5 54.5 27.8 31.3 136.8 18.4 25.2 37.4 128.9 144.6 159.1 23 Insurance and pension funds 89.5 85.9 94.3 97.4 108.8 98.8 101.4 111.4 106.3 89.5 108.1 98.5 24 Other finance 25.5 48.5 32.1 96.0 38.3 5.0 90.8 37.9 38.6 -16.8 26.8 70.5 25 Sources of funds 315.7 313.9 281.5 323.4 285.6 376.7 323.2 274.4 296.7 323.2 430.1 521.3 26 Private domestic deposits and RPs 142.7 137.4 169.6 211.9 174.7 203.5 217.9 147.6 201.9 192.7 214.2 283.0 27 Credit market borrowing 37.0 34.5 18.1 36.7 4.1 22.9 33.0 24.2 -16.0 7.8 38.0 51.9 28 Other sources 136.1 142.0 93.9 74.8 106.7 150.4 72.3 102.6 110.8 122.8 177.9 186.4 29 Foreign funds 6.5 27.6 -21.7 -8.7 -26.7 22.1 -9.8 -28.3 -25.1 -14.2 58.5 17.1 30 Treasury balances 6.8 .4 -2.6 -1.1 6.1 -5.3 -10.2 -2.0 14.1 10.1 -20.8 1.4 31 Insurance and pension reserves 74.9 72.8 83.9 90.4 104.6 99.2 101.0 111.4 97.8 90.0 108.4 105.5 32 Other, net 47.9 41.2 34.2 -5.9 22.8 34.4 -8.7 21.5 24.1 36.8 31.9 62.4 Private domestic nonfinancial investors 33 Direct lending in credit markets 59.6 99.6 56.1 70.6 94.2 142.1 62.8 77.3 111.0 135.3 148.9 182.7 34 U.S. government securities 33.5 52.5 24.6 29.3 37.4 88.7 24.5 35.3 39.5 95.9 81.4 134.4 35 State and local obligations 3.6 9.9 7.0 10.5 34.4 42.5 12.5 30.1 38.7 52.7 32.3 21.8 36 Corporate and foreign bonds -6.3 -1.4 -5.7 -8.1 -5.2 2.0 -10.7 -17.7 7.3 -1.7 5.7 7.2 37 Open market paper 8.3 8.6 -3.1 2.7 -.1 3.9 8.2 3.5 -3.7 -8.1 15.9 -.3 38 Other 20.5 30.0 33.3 36.3 27.8 5.0 28.4 26.2 29.3 -3.4 13.5 19.7 39 Deposits and currency 153.9 146.8 181.1 221.9 181.9 222.6 229.3 152.1 211.7 214.5 230.7 294.5 40 Currency 9.3 8.0 10.3 9.5 9.7 14.3 11.2 6.7 12.7 14.8 13.8 17.7 41 Checkable deposits 16.2 18.3 5.2 18.0 15.7 21.7 13.3 1.9 29.5 48.0 -4.7 37.8 42 Small time and savings accounts 65.9 59:3 82.9 47.0 138.2 219.1 71.8 83.2 193.1 278.6 159.7 127.9 43 Money market fund shares 6.9 34.4 29.2 107.5 24.7 -44.1 110.8 39.4 10.0 -84.0 -4.2 30.2 44 Large time deposits 46.3 18.8 45.8 36.9 -7.7 -7.5 24.6 21.9 -37.3 -61.0 45.9 81.8 45 Security RPs 7.5 6.6 6.5 2.5 3.8 14.3 -2.6 1.1 6.6 11.0 17.5 5.3 46 Deposits in foreign countries 2.0 1.5 1.1 .5 -2.5 4.8 .2 -2.2 -2.9 7.0 2.7 -6.2 47 Total of credit market instruments, deposits and currency 213.6 246.5 237.2 292.5 276.1 364.7 292.1 229.4 322.7 349.8 379.6 477.3 48 Public holdings as percent of total 25.3 18.5 26.1 24.0 26.0 21.5 23.0 27.4 24.9 23.7 19.5 17.5 49 Private financial intermediation (in percent) 93.3 82.8 88.1 90.5 76.0 76.0 91.6 83.8 70.0 71.7 79.5 79.9 50 Total foreign funds 44.6 23.0 1.5 7.6 -8.6 49.2 -3.5 -7.9 -9.3 12.6 85.9 44.1 MEMO: Corporate equities not included above 51 Total net issues 1.9 -3.8 22.2 -4.1 35.3 67.8 -17.4 23.3 47.2 83.5 52.0 -37.5 52 Mutual fund shares -.1 .1 5.2 6.3 18.4 32.8 5.7 12.5 24.3 36.8 28.9 44.8 53 Other equities 1.9 -3.9 17.1 -10.4 16.9 34.9 -23.0 10.9 22.9 46.8 23.1 -82.3 54 Acquisitions by financial institutions 4.7 12.9 24.9 20.1 39.2 57.5 22.6 11.0 67.3 75.9 39.2 4.2 55 Other net purchases -2.8 -16.7 -2.7 -24.2 -3.9 10.2 -40.0 12.3 -20.1 7.6 12.8 -41.7 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. NOTE. Full statements for sectors and transaction types in flows and in amounts 29. Foreign deposits at commercial banks, bank borrowings from foreign outstanding may be obtained from Flow of Funds Section, Division of Research branches, and liabilities of foreign banking agencies to foreign affiliates. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits at commercial banks. D.C. 20551. 31. Excludes net investment of these reserves in corporate equities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A43 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1984 MMeeaassuurree 11998811 11998822 11998833 Apr. May June July Aug. Sept.' Oct/ Nov/ Dec. 1 Industrial production 151.0 138.6 147.6 162.1 162.8 164.4 165.9 166.0 165.0 164.5 165.2 166.2 Market groupings 2 Products, total 150.6 141.8 149.2 162.5 163.3 165.3 167.4 167.2 166.4 167.0 167.6 168.7 3 Final, total 149.5 141.5 147.1 160.2 161.1 163.1 165.2 165.1 164.6 165.2 166.0 167.0 4 Consumer goods 147.9 142.6 151.7 161.4 161.7 163.0 163.8 162.5 161.6 161.8 162.8 163.7 5 Equipment 151.5 139.8 140.8 158.5 160.3 163.3 167.0 168.7 168.9 170.0 170.2 171.6 6 Intermediate 154.4 143.3 156.6 171.0 171.6 173.5 175.8 175.1 173.0 173.7 173.7 174.7 7 Materials 151.6 133.7 145.2 161.5 162.0 162.9 163.5 164.0 162.8 160.7 161.5 162.3 Industry groupings 8 Manufacturing 150.4 137.6 148.2 163.4 164.2 165.7 167.3 167.6 166.6 166.4 167.1 168.1 Capacity utilization (percent)1 9 Manufacturing 79.4 71.1 75.2 81.5 81.7 82.2 82.9 82.8 82.2 81.8 81.9 82.2 10 Industrial materials industries 80.7 70.1 75.2 82.5 82.7 82.9 83.1 83.3 82.4 81.9 81.4 81.6 11 Construction contracts (1977 = 100)2 111.0 111.0 138.0 145.0 165.0 148.0 152.0 151.0 144.0 146.0 158.0 n.a. 12 Nonagricultural employment, total3 138.5 136.1 137.0 142.0 142.5 143.1 143.4 143.6 144.1 144.6 145.1 145.6 13 Goods-producing, total 109.4 102.2 100.4 106.2 106.6 107.1 107.5 107.7 107.3 107.6 107.7 108.3 14 Manufacturing, total 103.7 96.6 95.1 100.4 100.6 100.9 101.3 101.4 100.9 101.2 101.4 101.8 15 Manufacturing, production-worker ... 98.0 89.4 88.7 94.0 94.1 94.3 94.6 94.8 94.0 94.3 94.4 94.9 16 Service-producing 154.5 154.7 157.1 161.6 162.2 162.8 163.1 163.4 164.2 164.9 165.6 166.0 17 Personal income, total 386.5 410.3 435.6 471.2 472.8 477.2 480.6r 483.5 487.0 489.2 492.3 494.9 18 Wages and salary disbursements 349.7 367.4 388.6 418.1 419.2 422.6 424.4 425.5 428.4 428.8 432.0 436.3 19 Manufacturing 287.5 285.5 294.7 322.0 321.9 323.1 324.4 326.2 325.7 326.7 329.1 332.9 20 Disposable personal income4 372.6 398.0 427.1 464.2 465.3 469.1 472.5 475.5 479.1 481.2 483.8 485.7 21 Retail sales5 330.6 326.0 373.0 410.8 413.6 417.7 410.5 407.3 413.6 415.5 423.8 423.4 Prices6 22 Consumer 272.4 289.1 298.4 308.8 309.7 310.7 311.7 313.0 314.5 315.3 315.3 315.5 23 Producer finished goods 269.8 280.7 285.2 291.2 291.1 290.9 292.3 291.3' 289.8 291.6 292.3 292.4 1. Ratios of indexes of production to indexes of capacity. Based on data from 5. Based on Bureau of Census data published in Survey of Current Business. Federal Reserve, McGraw-Hill Economics Department, Department of Com- 6. Data without seasonal adjustment, as published in Monthly Labor Review. merce, and other sources. Seasonally adjusted data for changes in the price indexes may be obtained from 2. Index of dollar value of total construction contracts, including residential, the Bureau of Labor Statistics, U.S. Department of Labor. nonresidential and heavy engineering, from McGraw-Hill Information Systems Company, F. W. Dodge Division. NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6, 3. Based on data in Employment and Earnings (U.S. Department of Labor). and indexes for series mentioned in notes 3 and 7 may also be found in the Survey Series covers employees only, excluding personnel in the Armed Forces. of Current Business. 4. Based on data in Survey of Current Business (U.S. Department of Com- Figures for industrial production for the last two months are preliminary and merce). estimated, respectively. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1984 CCaatteeggoorryy 11998811 11998822 11998833 May June July Aug. Sept. Oct/ Nov.' Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 172,272 174,450 176,414 178,337 178,501 178,669 178,821 179,005 179,181 179,353 179,524 2 Labor force (including Armed Forces)1 110,812 112,383 113,749 116,017 115,836' 116,097' 115,867' 116,006' 116,241 116,292 116,682 3 Civilian labor force 108,670 110,204 111,550 113,803 113,619' 113,868' 113,629' 113,764' 114,016 114,074 114,464 Employment 4 Nonagricultural industries2 97,030 96,125 97,450 101,899 102,023' 102,044' 101,884' 102,075' 102,480 102,598 102,888 5 Agriculture 3,368 3,401 3,383 3,389 3,368' 3,333' 3,264' 3,319' 3,169 3,334 3,385 Unemployment 6 Number 8,273 10,678 10,717 8,514 8,228' 8,491' 8,481' 8,370' 8,367 8,142 8,191 7 Rate (percent of civilian labor force) ... 7.6 9.7 9.6 7.5 7.2' 7.5 7.5 7.4 7.3 7.1 7.2 8 Not in labor force 61,460 62,067 62,665 62,320 62,665' 62,572' 62,954' 62,999' 62,940 63,061 62,842 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 91,156 89,566 90,138 93,786 94,135 94,350 94,523 94,807 95,154 95,489 95,798 10 Manufacturing 20,170 18,781 18,497 19,570 19,629 19,696 19,725 19,616 19,686 19,711 19,796 11 Mining l,139r 1,128 957 995 1,002 1,007 1,017 1,020 1,012 1,009 1,005 12 Contract construction 4,188' 3,905' 3,940 4,286 4,343 4,356 4,356 4,374 4,382 4,393 4,447 13 Transportation and public utilities 5,165r 5,082 4,958 5,144 5,163 5,175 5,202 5,213 5,225 5,224 5,238 14 Trade 20,547' 20,457 20,804 21,658 21,747 21,811 21,839 21,930 22,080 22,262 22,303 15 Finance 5,298' 5,341 5,467 5,662 5,676 5,676 5,679 5,684 5,705 5,728 5,748 16 Service 18,619' 19,036 19,665 20,549 20,681 20,701 20,748 20,861 20,964 21,041 21,137 17 Government 16,031' 15,837 15,851 15,922 15,894 15,928 15,957 16,109 16,100 16,121 16,124 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

A44 Domestic Nonfinancial Statistics • March 1985 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1984 1984 1984 Qi Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3' Q4 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 159.8 163.1 165.6 165.3 198.4 199.7 201.1 202.4 80.5 81.7 82.4 81.7 2 Mining 124.2 125.1 129.0 125.3 165.7 165.9 166.1 166.3 75.0 75.4 77.7 75.3 3 Utilities 179.2 183.1 181.1 179.9 213.8 215.3 216.8 218.3 83.8 85.0 83.5 82.4 4 Manufacturing 161.0 164.4 167.2 167.2 199.5 201.0 202.5 204.0 80.7 81.8 82.5 81.9 5 Primary processing ... 160.5 162.5 162.2 161.8 196.5 197.2 198.0 198.7 81.7 82.4 81.9 81.4 6 Advanced processing . 161.7 165.2 169.7 169.9 201.1 203.0 204.9 206.8 80.3 81.4 82.8 82.1 7 Materials 158.8 162.1 163.4 161.5 194.7 195.9 197.2 198.4 81.6 82.7 82.9 81.4 8 Durable goods 157.6 162.0 164.6 163.1 197.1 198.3 199.5 200.8 79.9 81.7 82.5 81.2 9 Metal materials .... 97.3 100.3 97.2 91.9 139.1 138.5 137.9 137.3 70.0 72.4 70.5 66.9 10 Nondurable goods.... 183.7 186.6 185.7 184.5 221.8 223.4 225.2 226.9 82.8 83.5 82.5 81.3 11 Textile, paper, and chemical.. 193.2 195.9 194.9 193.8 234.2 236.2 238.2 240.3 82.5 82.9 81.8 80.7 12 Paper 165.8 168.5 171.0 169.2 168.5 169.5 170.5 171.5 98.4 99.4 100.3 n.a. 13 Chemical 236.7 240.4 238.4 239.3 302.3 305.2 308.0 310.9 78.3 78.8 77.4 n.a. 14 Energy materials 131.2 132.4 133.1 129.1 155.8 156.4 157.0 157.6 84.2 84.6 84.8 81.9 Previous cycle1 Latest cycle2 1983 1984 High Low High Low Dec. Apr. May June July Aug. Sept/ Oct/ Nov/ Dec. Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 69.6 79.0 81.3 81.5 82.1 82.7 82.5 81.9 81.5 81.6 81.9 16 Mining 91.8 86.0 88.5 69.6 74.7 74.3 75.4 76.6 78.3 77.3 77.4 74.5 75.4 76.2 17 Utilities 94.9 82.0 86.7 79.0 85.7 85.0 84.7 85.4 84.1 83.3 83.2 82.9 82.7 81.7 18 Manufacturing 87.9 69.0 87.5 68.8 78.9 81.5 81.7 82.2 82.8 82.8 82.0 81.8 81.9 82.2 19 Primary processing ... 93.7 68.2 91.4 66.2 79.2 82.2 82.4 82.6 82.3 82.1 81.5 81.3 81.5 81.5 20 Advanced processing . 85.5 69.4 85.9 70.0 78.6 81.0 81.2 81.9 83.0 83.1 82.4 81.9 82.1 82.4 21 Materials 92.6 69.3 88.9 66.6 79.6 82.5 82.7 82.9 83.1 83.2 82.4 81.2 81.4 81.6 22 Durable goods 91.4 63.5 88.4 59.8 77.0 81.5 81.5 82.0 82.5 82.9 82.2 81.3 81.2 81.2 23 Metal materials 97.8 68.0 95.4 46.2 66.8 73.0 72.2 72.1 70.8 70.8 69.8 67.4 67.2 66.2 24 Nondurable goods 94.4 67.4 91.7 70.7 81.6 83.2 83.9 83.3 83.0 82.9 81.5 80.7 81.4 82.0 25 Textile, paper, and chemical 95.1 65.4 92.3 68.6 81.2 82.7 83.3 82.6 82.5 82.4 80.5 79.8 80.7 81.5 26 Paper 99.4 72.4 97.9 86.3 98.8 98.5 99.8 99.8 101.5 99.7 99.7 98.2 98.1 n.a. 27 Chemical 95.5 64.2 91.3 64.0 76.2 78.9 79.0 78.4 77.9 78.1 76.1 75.8 77.2 n.a. 28 Energy materials 94.5 84.4 88.9 78.5 83.6 84.5 84.3 85.0 85.3 84.7 84.3 81.4 82.0 82.3 1. Monthly high 1973; monthly low 1975. NOTE. These data also appear in the Board's G.3 (402) release. For address, see 2. Monthly highs 1978 through 1980; monthly lows 1982. inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1983 1984 pro- 1983 Grouping por- avg. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. NOV.P Dec. Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.6 156.2 158.5 160.0 160.8 162.1 162.8 164.4 165.9 166.0 165.0 164.5 2 Products 60.71 149.2 157.4 159.7 160.4 161.1 162.5 163.3 165.3 167.4 167.2 166.4 167.0 3 Final products 47.82 147.1 155.2 157.5 158.0 158.6 160.2 161.1 163.1 165.2 165.1 164.6 165.2 4 Consumer goods 27.68 151.7 157.7 159.5 159.4 160.2 161.4 161.7 163.0 163.8 162.5 161.6 161.8 5 Equipment 20.14 140.8 151.8 154.9 156.1 156.4 158.5 160.3 163.3 167.0 168.7 168.9 170.0 6 Intermediate products 12.89 156.6 165.4 167.8 169.0 170.2 171.0 171.6 173.5 175.8 175.1 173.0 173.7 7 Materials 39.29 145.2 154.5 156.6 159.4 160.4 161.5 162.0 162.9 163.5 164.0 162.8 160.7 Consumer goods 8 Durable consumer goods 7.89 147.5 158.6 163.4 162.5 163.1 162.2 161.4 163.6 163.7 162.6 159.6 158.5 9 Automotive products 2.83 158.2 178.4 184.5 182.1 184.1 180.9 179.8 184.3 185.0 181.8 173.0 171.3 10 Autos and utility vehicles 2.03 134.0 157.8 163.3 162.2 164.1 158.4 155.9 158.7 161.1 159.2 145.6 144.8 11 Autos 1.90 117.4 137.4 140.7 140.4 142.4 134.5 132.9 136.2 138.7 134.3 121.1 123.6 12 Auto parts and allied goods .80 219.6 230.7 238.4 232.6 234.7 238.0 240.6 249.3 245.8 239.1 242.7 238.5 13 Home goods 5.06 141.4 147.5 151.5 151.5 151.3 151.7 151.1 152.0 151.8 151.9 152.0 151.3 14 Appliances, A/C, and TV 1.40 116.4 126.3 136.4 135.1 134.4 136.1 134.0 134.9 133.4 132.3 136.4 133.5 15 Appliances and TV 1.33 120.1 130.2 140.0 138.6 138.0 138.8 136.7 138.0 136.9 135.9 140.2 136.8 16 Carpeting and furniture 1.07 178.1 184.0 183.1 178.7 180.2 181.0 179.6 179.4 179.5 180.8 179.3 178.1 17 Miscellaneous home goods 2.59 139.9 143.9 146.7 149.1 148.5 148.0 148.6 150.0 150.3 150.6 149.2 150.0 18 Nondurable consumer goods 19.79 153.4 157.3 157.9 158.2 159.1 161.1 161.8 162.7 163.9 162.4 162.4 163.1 19 Clothing 4.29 20 Consumer staples 15.50 163.7 166.0 166.5 166.9 168.0 170.2 171.6 173.2 174.5 172.7 173.1 174.2 21 Consumer foods and tobacco 8.33 153.5 155.4 156.5 156.8 157.6 160.4 161.0 161.9 162.9 161.8 162.1 163.0 22 Nonfood staples 7.17 175.4 178.3 178.2 178.7 180.1 181.6 183.9 186.3 188.0 185.4 185.9 187.2 23 Consumer chemical products 2.63 231.0 229.9 231.6 231.9 231.3 233.4 235.9 241.5 247.1 244.3 247.3 248.5 24 Consumer paper products 1.92 132.7 137.2 138.8 140.3 141.8 144.0 145.6 147.9 151.5 148.7 146.7 146.6 25 Consumer energy products 2.62 150.9 156.5 153.4 153.3 156.8 157.1 159.8 159.0 155.3 153.3 153.0 155.3 26 Residential utilities 1.45 173.4 185.2 180.0 172.8 177.7 177.4 181.1 182.4 178.6 175.0 174.1 177.4 Equipment 27 Business 12.63 153.3 167.3 170.7 171.9 172.1 173.5 176.5 181.1 185.5 187.6 186.4 187.1 28 Industrial 6.77 120.4 130.8 133.7 134.6 134.8 135.9 138.5 140.4 143.1 143.3 143.5 145.1 29 Building and mining 1.44 159.3 185.3 185.1 182.0 175.2 173.6 182.9 185.8 190.0 191.6 190.7 194.6 30 Manufacturing 3.85 107.1 115.1 119.7 120.9 124.2 126.2 127.4 128.6 130.1 129.7 129.8 130.6 31 Power 1.47 117.1 118.4 120.0 123.8 122.7 124.1 124.1 126.7 131.0 131.2 133.0 134.5 32 Commercial transit, farm 5.86 191.3 209.6 213.3 215.1 215.3 217.0 220.5 228.1 234.5 238.9 235.9 235.7 33 Commercial 3.26 273.2 298.9 303.2 305.9 306.9 309.6 315.5 326.3 333.4 339.2 336.5 338.3 34 Transit 1.93 95.2 106.0 110.1 110.1 109.2 108.9 109.7 115.1 120.4 124.5 121.4 117.8 35 Farm .67 69.5 73.5 73.6 75.7 75.0 78.0 77.1 76.1 81.8 80.3 76.4 76.1 36 Defense and space 7.51 119.9 125.7 128.3 129.5 130.1 133.2 133.1 133.5 135.9 136.8 139.5 141.1 Intermediate products 37 Construction supplies 6.42 142.5 151.5 155.5 156.6 159.1 159.6 159.5 160.9 161.9 160.9 158.2 158.7 38 Business supplies 6.47 170.7 179.3 180.1 181.3 181.3 182.3 183.5 186.1 189.5 189.1 187.6 188.6 39 Commercial energy products 1.14 184.3 188.0 192.1 191.6 187.0 190.0 190.8 195.3 194.9 193.3 194.5 195.4 Materials 40 Durable goods materials 20.35 138.6 151.3 154.6 158.6 159.5 161.3 161.6 163.0 164.2 165.3 164.3 163.0 41 Durable consumer parts 4.58 113.6 127.9 131.6 133.1 133.0 133.2 132.6 134.7 135.1 136.6 136.2 137.1 42 Equipment parts 5.44 176.4 193.4 198.2 204.0 206.7 210.9 210.6 214.0 218.8 220.1 219.6 216.1 43 Durable materials n.e.c 10.34 129.9 139.5 141.8 146.0 146.3 147.7 148.6 148.7 148.3 149.2 147.7 146.5 44 Basic metal materials 5.57 90.2 96.9 97.7 103.0 103.0 105.7 104.5 104.1 103.4 102.0 99.8 97.5 45 Nondurable goods materials 10.47 174.5 180.3 181.2 184.1 185.9 185.7 187.4 186.7 186.5 186.7 184.0 182.5 46 Textile, paper, and chemical materials 7.62 182.6 189.6 190.5 193.9 195.3 195.0 196.8 195.8 195.9 196.3 192.4 191.1 47 Textile materials 1.85 116.2 121.3 119.9 119.9 120.6 118.9 121.9 119.6 118.8 120.1 115.6 113.0 48 Paper materials 1.62 158.2 166.0 167.0 166.8 163.5 166.7 169.2 169.5 172.8 170.0 170.3 168.2 49 Chemical materials 4.15 221.7 229.3 231.3 237.6 241.1 240.0 241.1 240.2 239.3 240.6 235.3 235.0 50 Containers, nondurable 1.70 167.9 173.0 173.5 173.0 176.0 175.7 176.6 176.7 176.6 175.3 175.8 174.3 51 Nondurable materials n.e.c 1.14 130.5 129.5 130.5 135.2 137.7 138.6 140.5 140.5 138.8 139.6 140.8 136.9 52 Energy materials 8.48 124.8 130.0 131.3 131.0 131.3 132.1 131.9 133.2 133.7 133.0 132.7 128.3 53 Primary energy 4.65 114.7 117.6 119.3 121.3 119.6 119.5 119o8 120.1 122.7 121.8 121.6 113.2 54 Converted fuel materials 3.82 137.0 145.1 145.8 142.8 145.4 147.3 146.5 149.0 147.1 146.8 146.1 146.5 Supplementary groups 55 Home goods and clothing 9.35 129.9 137.6 140.1 140.3 140.1 141.0 139.8 139.6 139.7 139.6 138.9 138.3 56 Energy, total 12.23 135.9 141.1 141.6 141.4 141.9 142.8 143.3 144.5 144.0 143.0 142.8 140.3 57 Products 3.76 161.0 166.0 165.1 164.9 166.0 167.1 169.2 170.0 167.3 165.4 165.5 167.5 58 Materials 8.48 124.8 130.0 131.3 131.0 131.3 132.1 131.9 133.2 133.7 133.0 132.7 128.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • March 1985 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued 1967 1983 1984 Grouping c S o I d C e p pr o o r- - 1 a 9 v 8 g 3 . tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. Nov.? Dec/ Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 142.9 151.5 151.4 148.9 150.4 151.3 152.1 154.1 154.4 153.0 153.3 150.6 151.4 151.3 2 Mining 6.36 116.6 123.7 124.8 124.1 123.8 123.3 125.0 127.0 129.9 128.3 128.7 123.8 125.4 126.7 3 Utilities 5.69 172.4 182.5 181.0 176.5 180.0 182.7 182.3 184.3 181.8 180.6 180.9 180.5 180.5 178.8 4 Electric 3.88 196.0 208.0 206.8 200.0 204.6 207.7 206.8 209.6 205.9 204.0 204.4 203.6 202.9 200.2 5 Manufacturing 87.95 148.2 156.8 159.5 161.4 162.1 163.4 164.2 165.7 167.3 167.6 166.6 166.4 167.1 168.1 6 Nondurable 35.97 168.1 173.9 175.2 177.2 177.6 179.1 179.9 181.3 181.8 181.7 180.3 180.0 180.7 182.3 7 Durable 51.98 134.5 145.0 148.6 150.5 151.4 152.6 153.3 154.9 157.2 157.8 157.1 157.0 157.6 158.3 Mining 8 Metal 10 .51 80.9 82.3 89.4 97.4 100.0 98.5 98.0 96.8 96.4 83.4 84.5 91.3 93.8 9 Coal 11.12 .69 136.3 145.2 151.5 163.2 164.0 151.4 153.9 161.5 176.5 171.7 173.7 127.8 134.4 142.2 10 Oil and gas extraction 13 4.40 116.6 123.4 123.1 119.6 118.2 118.8 120.4 121.6 122.8 122.5 122.4 122.8 123.8 124.9 11 Stone and earth minerals 14 .75 122.8 133.9 134.8 133.0 135.8 140.4 144.0 147.9 151.9 153.5 154.6 147.8 147.5 Nondurable manufactures 12 Foods 20 8.75 156.4 157.7 159.4 160.0 161.2 163.1 164.2 165.1 164.9 164.7 164.3 165.0 13 Tobacco products 21 .67 112.1 112.3 116.4 110.9 111.8 113.3 112.8 118.3 115.1 113.8 113.1 115.7 14 Textile mill products 22 2.68 140.8 145.0 143.9 142.3 143.5 140.0 140.5 140.7 139.8 140.3 135.4 133.3 136.0 15 Apparel products 23 3.31 16 Paper and products 26 3.21 164.3 170.1 172.3 176.6 173.8 172.4 174.1 174.6 176.7 176.7 177.5 173.5 175.5 178.1 17 Printing and publishing 27 4.72 152.5 161.7 163.4 164.8 165.2 166.3 167.5 169.0 172.6 173.1 170.5 172.2 173.9 173.5 18 Chemicals and products 28 7.74 215.0 221.1 221.5 224.8 225.0 228.3 227.9 231.0 232.0 231.6 230.8 229.5 230.5 19 Petroleum products 29 1.79 120.3 114.4 118.8 127.6 127.0 126.8 127.9 127.5 124.7 124.3 122.6 125.4 125.9 124.7 20 Rubber and plastic products 30 2.24 291.9 314.4 317.2 318.5 323.8 328.0 334.1 341.0 341.4 341.5 338.4 338.5 337.9 21 Leather and products 31 .86 61.9 66.0 61.4 63.9 63.9 63.5 61.4 60.0 60.6 59.1 57.9 55.2 58.0 Durable manufactures 22 Ordnance, private and government 19.91 3.64 95.4 99.8 99.7 99.6 100.6 101.4 100.8 101.7 102.7 105.5 107.1 107.9 108.9 109.9 23 Lumber and products 24 1.64 137.2 143.8 146.0 145.6 149.3 151.2 146.3 148.5 146.0 148.8 149.2 152.6 152.4 24 Furniture and fixtures 25 1.37 170.5 177.9 183.8 185.6 184.6 186.6 190.5 191.9 192.6 195.3 194.3 195.5 193.9 25 Clay, glass, stone products 32 2.74 143.4 153.8 157.8 160.4 160.2 160.0 160.6 159.7 160.9 160.0 158.0 159.2 159.2 26 Primary metals 33 6.57 85.4 90.4 93.2 98.4 97.5 99.3 98.2 97.9 94.5 94.4 94.1 93.0 90.5 88.9 27 Iron and steel 331.2 4.21 71.5 74.1 80.7 86.0 84.4 84.0 83.5 83.5 76.5 77.7 77.5 75.6 72.9 28 Fabricated metal products 34 5.93 120.2 129.2 131.7 132.8 134.9 135.5 136.5 138.7 140.6 140.0 139.5 140.7 139.6 140.9 29 Nonelectrical machinery 35 9.15 150.6 164.3 169.5 170.9 171.9 174.9 178.8 182.0 186.9 189.1 187.9 187.2 186.4 187.1 30 Electrical machinery 36 8.05 185.5 201.5 206.2 209.9 212.0 214.6 214.5 216.0 221.5 221.5 222.8 221.9 224.0 224.7 31 Transportation equipment 37 9.27 117.8 130.8 134.9 135.2 135.8 134.5 135.0 137.2 140.6 141.0 137.6 137.1 141.8 142.8 32 Motor vehicles and parts 371 4.50 137.1 158.9 166.3 164.4 165.8 161.9 163.0 165.3 169.0 169.6 162.4 161.6 171.4 172.6 33 Aerospace and miscellaneous transportation equipment.. 372-9 4.77 99.6 104.3 105.3 107.7 107.5 108.8 108.6 110.8 113.8 113.9 114.2 114.1 114.0 114.7 34 Instruments 38 2.11 158.7 164.6 167.8 168.6 169.7 171.0 171.8 174.5 176.7 177.4 178.5 177.5 178.1 181.9 35 Miscellaneous manufactures 39 1.51 146.2 149.3 151.1 152.0 152.3 152.1 151.5 150.8 152.4 149.2 147.0 148.3 147.5 149.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 612.6 645.4 655.1 656.9 661.8 661.1 665.9 671.5 682.4 678.2 673.6 676.4 678.4 37 Final 390.9 472.6 497.8 505.3 505.0 509.6 509.0 514.0 518.1 525.9 522.3 519.7 522.3 524.2 38 Consumer goods . 277.5 328.7 341.9 345.3 345.3 347.7 347.8 349.5 350.9 353.2 347.4 345.4 347.9 350.1 39 Equipment 113.4 144.0 155.9 160.0 159.7 161.9 161.2 164.4 167.2 172.8 174.9 174.4 174.4 174.2 40 Intermediate 116.6 140.0 147.6 149.8 151.9 152.2 152.2 151.9 153.4 156.5 155.9 153.8 154.1 154.1 NOTE. These data also appear in the Board's G.12.3 (414) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1984 IItteemm Feb. Mar. Apr. May June July Aug/ Sept/ Oct/ Nov. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 986 1,000 1,605 1,902 1,727 1,758 1,745 1,768 1,565 1,506 1,440 1,418 1,591 7 1-family 564 546 902 1,083 974 957 913 916 823 803 841 794 824 3 2-or-more-family 421 454 703 819 753 801 832 852 742 703 599 624 767 4 Started 1,084 1,062 1,703 2,262 1,662 2,015 1,794 1,877 1,754 1,554 1,683 1,535 1,554 5 1-family 705 663 1,067 1,463 1,071 1,196 1,131 1,084 990 932 1,016 964 1,009 6 2-or-more-family 379 400 635 799 591 819 663 793 764 622 667 571 545 7 Under construction, end of period1 682 720 1,003 1,033 1,065 1,091 1,094 1,101 1,105 1,091 1,090 1,082 1,080 8 1-family 382 400 524 557 571 582 589 589 586 573 567 570 573 9 2-or-more-family 301 320 479 477 494 509 506 512 519 517 523 510 506 10 Completed 1,266 1,005 1,390 1,565 1,590 1,654 1,756 1,739 1,718 1,689 1,661 1,585 1,523 11 1-family 818 631 924 1,034 1,031 974 1,081 1,051 1,076 1,039 1,059 951 974 12 2-or-more-family 447 374 466 531 559 680 675 688 642 650 602 634 549 13 Mobile homes shipped 241 240 295 293 287 287 295 301 301 303 277 301 294 Merchant builder activity in 1-family units 14 Number sold 436 413 622 712 682 649 616 635 615 562 655 661 591 15 Number for sale, end of period1 278 255 304 320 320 328 333 339 341 344 343 347 349 Price (thousands of dollars)2 Median 16 Units sold 68.8 69.3 75.5 79.2 78.4 79.6 81.4 80.5 80.7 82.0 80.8 80.0 81.7 17 Units sold 83.1 83.8 89.9 94.4 97.7 96.2 101.9 98.8 97.1 96.9 100.9 94.7 101.0 EXISTING UNITS (1-family) 18 Number sold 2,418 1,991 2,719 2,910 3,020 3,090 3,060 2,960 2,770 2,700 2,670 2,650 2,820 Price of units sold (thousands of dollars)2 19 Median 66.1 67.7 69.8 71.8 72.2 72.5 73.1 73.8 74.5 73.7 72.1 72.0 72.4 20 Average 78.0 80.4 82.5 84.9 85.1 86.1 86.2 87.7 88.2 87.8 85.6 85.9 85.5 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 239,112 230,068 262,167 300,355 309,744 308,596 316,398 315,279 314,223 318,031 318,685 318,753 322,207 ?? Private 185,761 179,090 211,369 248,104 254,958 254,057 261,182 257,789 258,245 261,165 260,871 261,869 265,297 73 Residential 86,564 74,808 111,727 137,403 141,087 136,577 138,401 136,418 137,818 138,926 137,106 135,513 134,572 24 Nonresidential, total 99,197 104,282 99,642 110,701 113,871 117,480 122,781 121,371 120,427 122,239 123,765 126,356 130,725 Buildings 75 Industrial 17,031 17,346 12,863 13,969 14,363 13,633 15,170 14,065 13,784 14,613 14,917 15,182 16,392 76 Commercial 34,243 37,281 35,787 42,076 45,280 47,353 49,719 48,947 48,835 49,696 50,862 53,677 56,557 77 Other 9,543 10,507 11,660 12,999 13,190 13,271 13,821 13,327 12,344 11,859 12,079 12,115 12,203 28 Public utilities and other 38,380 39,148 39,332 41,657 41,038 43,223 44,071 45,032 45,464 46,071 45,907 45,382 45,573 79 Public 53,346 50,977 50,798 52,251 54,786 54,539 55,216 57,490 55,979 56,866 57,814 56,884 56,910 30 1,966 2,205 2,544 2,474 2,872 2,827 2,649 2,703 2,345 2,851 3,508 2,893 2,703 31 Highway 13,599 13,428 14,225 14,993 16,205 16,781 16,949 16,824 17,136 17,322 17,209 16,888 17,797 3? Conservation and development 5,300 5,029 4,822 4,608 4,531 4,518 4,356 4,492 4,520 4,520 4,890 4,607 5,054 33 Other 32,481 30,315 29,207 30,176 31,178 30,413 31,262 33,471 31,978 32,173 32,207 32,496 31,356 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

A48 Domestic Nonfinancial Statistics • March 1985 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted C m h o a n n t g h e s f e ro a m rli e 1 r 2 Change ( a f t r o a m nn u 3 a m l o ra n t t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm DDDeeeccc... 1984 1984 111999888444 11998833 11998844 (((111999666777 DDeecc.. DDeecc.. === 111000000)))111 Mar. June Sept. Dec. Aug/ Sept/ Oct. Nov. Dec. CONSUMER PRICES2 1 All items 3.8 4.0 5.0 3.3 4.5 3.1 .5 .4 .4 .2 .2 315.5 2 Food 2.6 3.8 9.0 -.7 3.4 3.7 .6 -.1 .4 .2 .3 305.1 3 Energy items -.5 .2 -1.4 .8 1.7 -.2 .1 .6 .3 .2 -.5 418.9 4 All items less food and energy 4.9 4.7 5.1 4.7 5.4 3.5 .5 .4 .3 .3 .3 307.3 5 Commodities 5.0 3.1 3.4 3.7 4.0 1.1 .4 .5 .2 .0 .2 256.7 6 Services 4.8 5.6 5.9 5.3 6.2 5.0 .5 .4 .5 .4 .4 365.0 PRODUCER PRICES 7 Finished goods .6 1.8 5.7 -.4 .4 1.7 -.1 .0 -.2 .5 .1 292.4 8 Consumer foods 2.3 3.8 16.9 -8.5 3.3 5.2 -.1 -.4 .1 .7 .5 274.4 9 Consumer energy -9.2 -4.1 -8.1 7.5 -16.7 2.9 -2.5 -.2 1.5 .6 -1.3 736.4 10 Other consumer goods 1.9 2.2 4.5 1.3 2.5 .5 .3 .1 -.5 .5 .1 248.0 11 Capital equipment 1.9 2.1 3.8 2.3 2.9 -.5 .3 .2 -.6 .2 .2 296.4 12 Intermediate materials3 1.4 1.7 2.9 3.3 -1.0 1.5 -.1 -.1 .2 .3 -.2 325.5 13 Excluding energy 3.0 2.0 3.8 2.0 .4 2.0 .2 -.1 .2 .3 .0 304.6 Crude materials 14 Foods 8.0 -.9 12.5 -21.7 -4.9 14.9 -1.8 .1 -1.1 4.9 -.2 253.7 15 Energy -4.6 -1.0 -1.6 4.0 1.0 -7.0 .6 -.7 -.3 -.9 -.6 775.4 16 Other 15.5 -3.3 -9.7 31.6 -14.0 -14.6 -3.2 1.2 -1.5 -1.5 -.9 253.9 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

Selected Measures A49 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1983 1984 AAccccoouunntt 11998822 11998833 11998844 Q4 Ql Q2 Q3 Q4P GROSS NATIONAL PRODUCT 1 3,069.3 3,304.8 3,661.3 3,431.7 3,553.3 3,644.7 3,694.6 3,752.5 By source 2 Personal consumption expenditures 1,984.9 2,155.9 2,342.3 2,230.2 2,276.5 2,332.7 2,361.4 2,398.6 3 Durable goods 245.1 279.8 318.4 299.8 310.9 320.7 317.2 324.7 4 Nondurable goods 757.5 801.7 858.3 823.0 841.3 858.3 861.4 872.1 5 Services 982.2 1,074.4 1,165.7 1,107.5 1,124.4 1,153.7 1,182.8 1,201.8 6 Gross private domestic investment 414.9 471.6 637.3 540.0 623.8 627.0 662.8 635.5 7 Fixed investment 441.0 485.1 580.4 527.3 550.0 576.4 591.0 604.3 8 Nonresidential 349.6 352.9 426.0 383.9 398.8 420.8 435.7 448.9 9 Structures 142.1 129.7 150.3 136.6 142.2 150.0 151.4 157.5 10 Producers' durable equipment 207.5 223.2 275.7 247.3 256.7 270.7 284.2 291.4 11 Residential structures 91.4 132.2 154.4 143.4 151.2 155.6 155.3 155.4 12 Nonfarm 86.6 127.6 149.3 138.7 146.4 150.5 150.1 150.2 13 Change in business inventories -26.1 -13.5 56.8 12.7 73.8 50.6 71.8 31.1 14 -24.0 -3.1 48.4 14.1 60.6 47.0 63.7 22.1 IS Net exports of goods and services 19.0 -8.3 -66.3 -29.8 -51.5 -58.7 -90.6 -64.3 16 Exports 348.4 336.2 363.7 346.1 358.9 362.4 368.6 364.7 17 Imports 329.4 344.4 429.9 375.9 410.4 421.1 459.3 429.0 18 Government purchases of goods and services 650.5 685.5 748.0 691.4 704.4 743.7 761.0 782.7 19 Federal 258.9 269.7 295.5 266.3 267.6 296.4 302.0 316.1 20 State and local 391.5 415.8 452.4 425.1 436.8 447.4 458.9 466.6 By major type of product 71 Final sales, total 3,095.4 3,318.3 3,604.4 33,,441199..00 33,,447799..55 33,,559944..11 33,,662222..88 33,,772211..44 7? Goods 1,276.7 1,355.7 1,540.4 1,423.9 1,498.0 1,544.8 1,549.1 1,569.4 73 Durable 499.9 555.3 652.9 607.4 632.3 647.9 654.7 676.6 74 Nondurable 776.9 800.4 887.5 816.5 865.7 896.9 894.4 892.8 ?5 1,510.8 1,639.3 1,763.5 1,681.3 1,713.7 1,742.6 1,783.3 1,814.7 26 Structures 281.7 309.8 357.3 326.5 341.6 357.2 362.1 368.4 7.7 Change in business inventories -26.1 -13.5 56.8 12.7 73.8 50.6 71.8 31.1 7,8 Durable goods -18.0 -2.1 29.0 14.5 34.9 18.2 41.7 21.2 29 Nondurable goods -8.1 -11.3 27.8 -1.7 38.9 32.4 30.1 9.9 30 MEMO: Total GNP in 1972 dollars 1,480.0 1,534.7 1,639.0 1,572.7 1,610.9 1,638.8 1,645.2 1,661.1 NATIONAL INCOME 31 2,446.8 2,646.7 2,959.4 2,766.5 2,873.5 2,944.8 2,984.9 n.a. 32 Compensation of employees 1,864.2 1,984.9 2,172.7 2,055.4 2,113.4 2,159.2 2,191.9 2,226.2 33 Wages and salaries 1,568.7 1,658.8 1,803.7 1,715.4 1,755.9 1,793.3 1,819.1 1,846.3 34 Government and government enterprises 306.6 328.2 349.8 335.0 342.9 347.5 352.0 356.9 3*! Other 1,262.2 1,331.1 1,453.8 1,380.4 1,413.0 1,445.8 1,467.1 1,489.4 36 Supplement to wages and salaries 295.5 326.2 369.0 340.0 357.4 365.9 372.8 379.9 37 Employer contributions for social insurance 140.0 153.1 173.5 157.9 169.4 172.4 174.7 177.4 38 Other labor income 155.5 173.1 195.5 182.1 188.1 193.5 198.1 202.5 39 111.1 121.7 154.7 131.9 154.9 149.8 153.7 160.4 40 Business and professional1 89.2 107.9 126.4 114.6 122.5 126.3 126.4 130.6 41 Farm1 21.8 13.8 28.3 17.3 32.5 23.4 27.3 29.9 42 Rental income of persons2 51.5 58.3 62.5 60.4 61.0 62.0 63.0 63.8 43 159.1 225.2 284.5 260.0 277.4 291.1 282.8 n.a. 44 Profits before tax3 165.5 203.2 234.3 225.5 243.3 246.0 224.8 n.a. 45 Inventory valuation adjustment -9.5 -11.2 -5.7 -9.2 -13.5 -7.3 -.2 -1.7 46 Capital consumption adjustment 3.1 33.2 55.9 43.6 47.6 52.3 58.3 65.5 47 Net interest 260.9 256.6 285.0 258.9 266.8 282.8 293.5 297.1 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

A50 Domestic Nonfinancial Statistics • March 1985 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1983 1984 11998822 11998833 1984 Q4 Ql Q2 Q3 Q4 P PERSONAL INCOME AND SAVING 1 Total personal income 2,584.6 2,744.2 3,013.2 2,836.5 2,920.5 2,984.6 3,047.3 3,100.4 2 Wage and salary disbursements 1,568.7 1,659.2 1,803.6 1,715.4 1,755.7 1,793.1 1,819.5 1,846.1 3 Commodity-producing industries 509.3 519.3 569.0 539.0 555.9 567.0 573.3 579.9 4 Manufacturing 382.9 395.2 433.8 411.9 424.6 432.2 436.4 441.9 5 Distributive industries 378.6 398.6 432.0 413.2 419.2 429.5 436.4 442.9 6 Service industries 374.3 413.1 452.8 428.2 437.9 449.3 457.3 466.7 7 Government and government enterprises 306.6 328.2 349.8 335.0 342.8 347.3 352.4 356.7 8 Other labor income 155.5 173.1 195.5 182.1 188.1 193.5 198.1 202.5 9 Proprietors' income1 111.1 121.7 154.7 131.9 154.9 149.8 153.7 160.4 10 Business and professional1 89.2 107.9 126.4 114.6 122.5 126.3 126.4 130.6 11 Farm1 21.8 13.8 28.3 17.3 32.5 23.4 27.3 29.9 12 Rental income of persons2 51.5 58.3 62.5 60.4 61.0 62.0 63.0 63.8 13 Dividends 66.5 70.3 77.7 72.8 75.0 77.2 78.5 80.2 14 Personal interest income 366.6 376.3 434.8 388.2 403.9 425.6 449.3 460.1 15 Transfer payments 376.1 405.0 416.9 408.8 411.3 415.2 418.6 422.4 16 Old-age survivors, disability, and health insurance benefits.. 204.5 221.6 237.5 227.7 232.1 235.2 238.2 244.5 17 LESS: Personal contributions for social insurance 111.4 119.6 132.5 123.2 129.6 131.8 133.4 135.1 18 EQUALS: Personal income 2,584.6 2,744.2 3,013.2 2,836.5 2,920.5 2,984.6 3,047.3 3,100.4 19 LESS: Personal tax and nontax payments 404.1 404.2 435.1 407.9 418.3 430.3 440.9 451.0 20 EQUALS: Disposable personal income 2,180.5 2,340.1 2,578.1 2,428.6 2,502.2 2,554.3 2,606.4 2,649.4 21 LESS: Personal outlays 2,044.5 2,222.0 2,421.2 2,300.0 2,349.6 2,409.5 2,442.3 2,483.2 22 EQUALS: Personal saving 136.0 118.1 156.9 128.7 152.5 144.8 164.1 166.2 MEMO Per capita (1972 dollars) 23 Gross national product 6,369.7 6,543.4 6,924.9 6,681.4 6.829.4 6.933.2 6,943.2 6,993.2 24 Personal consumption expenditures 4,145.9 4,302.8 4,489.6 4,386.0 4.426.5 4.502.3 4,498.4 4,530.8 25 Disposable personal income 4,555.0 4,670.0 4,941.0 4,776.0 4,865.0 4,930.0 4,965.0 5,004.0 26 Saving rate (percent) 6.2 5.0 6.1 5.3 6.1 5.7 6.3 6.3 GROSS SAVING 27 Gross saving. 408.8 437.2 551.0 485.7 543.9 551.0 556.4 n.a. 28 Gross private saving 524.0 571.7 675.3 615.0 651.3 660.2 689.4 n.a. 29 Personal saving 136.0 118.1 156.9 128.7 152.5 144.8 164.1 166.2 30 Undistributed corporate profits1 29.2 76.5 115.6 100.0 107.0 115.3 118.4 n.a. 31 Corporate inventory valuation adjustment -9.5 -11.2 -5.7 -9.2 -13.5 -7.3 -.2 -1.7 Capital consumption allowances 32 Corporate 221.8 231.2 246.0 236.4 239.9 244.1 248.1 251.7 33 Noncorporate 137.1 145.9 156.9 150.0 151.8 156.0 158.8 161.0 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -115.3 -134.5 -124.4 -129.3 -107.4 -109.2 -133.0 n.a. 36 Federal -148.2 -178.6 -176.4 -180.5 -161.3 -163.7 -180.6 n.a. 37 State and local 32.9 44.1 52.0 51.2 53.9 54.5 47.6 n.a. 38 Capital grants received by the United States, net .0 .0 .0 .0 .0 .0 .0 .0 39 Gross investment 408.3 437.7 n.a. 480.9 546.1 542.0 543.4 539.6 40 Gross private domestic 414.9 471.6 637.3 540.0 623.8 627.0 662.8 635.5 41 Net foreign -6.6 -33.9 -94.5 -59.1 -77.7 -85.0 -119.4 -95.8 42 Statistical discrepancy. -.5 .5 -8.2 -4.8 2.2 -9.0 -13.0 -13.0 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

Summary Statistics A51 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1983 1984 IItteemm ccrreeddiittss oorr ddeebbiittss 11998811 11998822 11998833 Q3 Q4 Q1 Q2 Q3 p 1 Balance on current account 6,294 -9,199 -41,563 -11,846 -17,213 -19,673 -24,704 -32,900 "> -14,498 -15,964 -18,616 -24,381 -35,471 3 Merchandise trade balance2 -28,001 -36,469 -61,055 -17,501 -19,407 -25,855 -25,845 -33,134 4 Merchandise exports 237,085 211,198 200,257 50,437 51,829 53,935 54,563 55,497 5 Merchandise imports -265,086 -247,667 -261,312 -67,938 -71,236 -79,790 -80,408 -88,631 6 Military transactions, net -1,116 195 515 -55 -273 -370 -404 -241 7 Investment income, net3 34,053 27,802 23,508 7,172 5,119 7,748 3,459 3,678 8 Other service transactions, net 8,191 7,331 4,121 681 434 951 243 -385 9 Remittances, pensions, and other transfers -2,382 -2,635 -2,590 -665 -688 -717 -726 -711 10 U.S. government grants (excluding military) -4,451 -5,423 -6,060 -1,478 -2,398 -1,430 -1,431 -2,107 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,107 -6,143 -5,013 -1,204 -1,429 -2,037 -1,235 -1,474 12 Change in U.S. official reserve assets (increase, -) -5,175 -4,965 -1,196 529 -953 -657 -565 -799 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -1,823 -1,371 -66 -209 545 -226 -288 -271 15 Reserve position in International Monetary Fund -2,491 -2,552 -4,434 -88 -1,996 -200 -321 -331 16 Foreign currencies -861 -1,041 3,304 826 498 -231 44 -197 17 Change in U.S. private assets abroad (increase, -)3 -100,694 -107,790 -43,281 -8,548 -12,461 705 -17,237 18,297 18 Bank-reported claims -84,175 -111,070 -25,391 -2,871 -8,239 1,955 -20,612 18,359 19 Nonbank-reported claims -1,181 6,626 -5,333 -233 -1,671 1,659 2,120 n.a. 20 U.S. purchase of foreign securities, net -5,714 -8,102 -7,676 -1,571 -983 637 -820 -1,167 21 U.S. direct investments abroad, net3 -9,624 4,756 -4,881 -3,873 -1,568 -3,546 2,075 1,105 22 Change in foreign official assets in the United States (increase, +) 5,003 3,318 5,339 -2,703 6,555 -2,784 -345 -1,022 23 U.S. Treasury securities 5,019 5,728 6,989 -611 2,603 -288 -310 -577 24 Other U.S. government obligations 1,289 -694 -487 -363 417 -8 147 85 25 Other U.S. government liabilities4 -300 382 199 137 161 242 448 -244 26 Other U.S. liabilities reported by U.S. banks -3,670 -1,747 433 -1,403 3,498 -2,131 349 201 27 Other foreign official assets5 2,665 -351 -1,795 -463 -124 -599 -979 -487 28 Change in foreign private assets in the United States (increase, +)3 76,310 91,863 76,383 22,281 27,249 18,444 40,750 7,256 29 U.S. bank-reported liabilities 42,128 65,922 49,059 14,792 22,325 8,775 20,789 -3,879 30 U.S. nonbank-reported liabilities 917 -2,383 -1,318 1,311 -228 4,404 4,055 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,946 7,062 8,731 995 1,673 1,358 6,477 5,153 32 Foreign purchases of other U.S. securities, net 7,171 6,396 8,612 1,861 1,134 1,516 587 1,684 33 Foreign direct investments in the United States, net3 23,148 14,865 11,299 3,322 2,345 2,391 8,842 4,298 34 Allocation of SDRs 1,093 0 0 0 0 0 0 0 35 Discrepancy 22,275 32,916 9,331 1,491 -1,748 6,002 3,336 10,642 36 --22,,551188 22,,665577 --115544 --110044 --22,,338866 37 Statistical discrepancy in recorded data before seasonal adjustment 22,275 32,916 9,331 4,009 -4,405 6,156 3,440 13,028 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -5,175 -4,965 -1,196 529 -953 -657 -565 -799 39 Foreign official assets in the United States (increase, +) 5,303 2,936 5,140 -2,840 6,394 -3,026 -793 -778 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 13,581 7,291 -8,639 -2,051 -1,640 -2,447 -2,170 2,274 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 675 593 205 49 84 41 44 45 1. Seasonal factors are no longer calculated for lines 6, 10, 12-16, 18-20,22-34, 4. Primarily associated with military sales contracts and other transactions and 38-41. arranged with or through foreign official agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing; military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business 3. Includes reinvested earnings. (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics • March 1985 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1984 IItteemm 11998811 11998822 11998833 May June July Aug. Sept. Oct. Nov. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 233,677 212,193 200,486 17,950 17,633 19,442 18,036 18,177 18,387 18,373 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 261,305 243,952 258,048 25,569 25,356 31,883 26,567 29,430 26,313 27,033 3 Trade balance -27,628 -31,759 -57,562 -7,619 -7,723 -12,440 -8,531 -11,253 -7,926 -8,661 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. SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" The Census basis data differ from merchandise trade data shown in table 3.10, (Department of Commerce, Bureau of the Census). U.S. International Transactions Summary, for reasons of coverage and timing. On 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 1984 TTyyppee 11998811 11998822 11998833 June July Aug. Sept. Oct. Nov. Dec. 1 Total 30,075 33,958 33,747 34,547 34,392 34,760 34,306 34,570 34,727 34,934 2 Gold stock, including Exchange Stabilization Fund1 11,151 11,148 11,121 11,100 11,099 11,098 11,097 11,096 11,096 11,096 3 Special drawing rights2'3 4,095 5,250 5,025 5,459 5,453 5,652 5,554 5,539 5,693 5,641 4 Reserve position in International Monetary Fund2 5,055 7,348 11,312 11,659 11,735 11,820 11,619 11,618 11,675 11,541 5 Foreign currencies4 9,774 10,212 6,289 6,329 6,105 6,190 6,036 6,317 6,263 6,656 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 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in the IMF also are valued on this basis beginning July 1974. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1984 AAsssseettss 11998811 11998822 11998833 June July Aug. Sept. Oct. Nov. Dec. 1 Deposits 505 328 190 238 215 242 206 270 392 253 Assets held in custody 2 U.S. Treasury securities1 104,680 112,544 117,670 117,143 115,760 117,130 115,678 115,542 117,433 118,267 3 Earmarked gold2 14,804 14,716 14,414 14,266 14,270 14,258 14,256 14,260 14,265 14,265 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

Summary Statistics A53 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1984 AAsssseett aaccccoouunntt 11998811 11998822 11998833 May June July Aug. Sept. Oct. NOV.P All foreign countries 1 Total, all currencies 462,847 469,712 476,539 485,930 477,667 465,688 462,115 454,076 448,284 451,947 7 Claims on United States 63,743 91,805 115,065 126,124 125,265 118,324 116,8% 114,442 109,380 112,732 3 Parent bank 43,267 61,666 81,113 89,031 89,773 82,273 82,051 80,155 75,620 77,876 4 Other banks in United States1 1 in A-in 14,536 14,529 13,560 13,257' 12,740 13,624 Nonbanks1 20,956 21,522 21,285 21,023 21,020 21,232 6 Claims on foreigners 378,954 358,493 342,609 339,191 332,343 327,156 324,359 318,993' 318,707 319,334 7 Other branches of parent bank 87,821 91,168 92,718 95,271 95,861 91,379 93,566 92,691 90,858 91,319 8 Banks 150,763 133,752 117,593 112,614 105,561 107,203 103,064' 101,331' 101,999 102,928 9 Public borrowers 28,197 24,131 24,508 24,345 23,381 23,440 22,655' 22,498 22,974 22,858 10 Nonbank foreigners 112,173 109,442 107,790 106,963 107,540 105,134 105,074' 102,473' 102,876 102,229 11 Other assets 20,150 19,414 18,865 20,615 20,059 20,208 20,860 20,641' 20,197 19,881 12 Total payable in U.S. dollars 350,735 361,982 370,958 372,643 367,805' 357,415' 352,597' 346,928 340,431 345,420 13 Claims on United States 62,142 90,085 112,959 123,749 123,070 116,017 114,572 111,959 106,754 110,374 14 Parent bank 42,721 61,010 80,018 87,851 88,661 81,073 80,905 78,967 74,250 76,681 IS Other banks in United States1 -i n 14,294 14,195 13,211 12,864' 12,448 13,389 16 Nonbanks1 20,115 20,749 20,456 20,128' 20,056 20,304 17 Claims on foreigners 276,937 259,871 247,327 238,022 234,128 230,700 227,021 224,221' 222,965 224,101 18 Other branches of parent bank 69,398 73,537 75,207 75,679 77,408 73,648 76,023 75,554 73,509 74,606 19 Banks 122,110 106,447 93,257 86,555 81,174 82,178 77,120 76,324' 76,663 76,974 20 Public borrowers 22,877 18,413 17,881 17,613 17,007 17,149 16,784' 16,887 17,246 17,303 21 Nonbank foreigners 62,552 61,474 60,982 58,175 58,539 57,725 57,094' 55,456' 55,547 55,218 22 Other assets 11,656 12,026 10,672 10,872 10,607' 10,686' 11,004' 10,748' 10,712' 10,945 United Kingdom 23 Total, all currencies 157,229 161,067 158,732 159,250 159,038 155,643 154,250 147,696 147,543 148,562 74 Claims on United States 11,823 27,354 34,433 36,172 36,338 33,697 31,691 29,333 28,933 29,487 25 Parent bank 7,885 23,017 29,111 30,266 30,621 27,863 26,054 23,772 23,264 23,758 76 Other banks in United States1 1 1,252 1,273 1,087 1,327 1,214 1,484 77 Nonbanks1 4,465 4,561 4,550 4,234 4,455 4,245 28 Claims on foreigners 138,888 127,734 119,280 117,970 117,492 116,740 117,255 113,299 113,524 114,270 79 Other branches of parent bank 41,367 37,000 36,565 36,806 38,620 37,728 39,313 37,499 37,638 37,401 30 Banks 56,315 50,767 43,352 42,244 40,069 40,980 39,906 39,133 38,696 39,262 31 Public borrowers 7,490 6,240 5,898 5,992 5,876 5,786 5,510 5,330 5,441 5,424 32 Nonbank foreigners 33,716 33,727 33,465 32,928 32,927 32,246 32,526 31,337 31,749 32,183 33 Other assets 6,518 5,979 5,019 5,108 5,208 5,206 5,304 5,064 5,086 4,805 34 Total payable in U.S. dollars 115,188 123,740 126,012 122,406 123,933 120,488 118,337 114,358 113,418 114,821 35 Claims on United States 11,246 26,761 33,756 35,234 35,387 32,587 30,641 28,282 27,898 28,595 36 Parent bank 7,721 22,756 28,756 29,876 30,181 27,239 25,509 23,323 22,806 23,363 37 Other banks in United States1 1,144 1,149 950 1,195 1.113 1,437 38 Nonbanks1 4,062 4,199 4,182 3,764 3,979 3,795 39 Claims on foreigners 99,850 92,228 88,917 84,087 85,447 84,729 84,553 83,082 82,456 82,977 40 Other branches of parent bank 35,439 31,648 31,838 30,280 32,867 31,762 33,623 32,704 32,461 32,675 41 Banks 40,703 36,717 32,188 30,196 28,778 29,444 27,961 27,986 27,093 27,290 47 Public borrowers 5,595 4,329 4,194 4,296 4,284 4,288 3,983 3,879 4,063 4,094 43 Nonbank foreigners 18,113 19,534 20,697 19,315 19,518 19,235 18,986 18,513 18,839 18,918 44 Other assets 4,092 4,751 3,339 3,085 3,099 3,172 3,143 2,994 3,064 3,249 Bahamas and Caymans 45 Total, all currencies 149,108 145,156 151,532 156,656 153,836 147,730 147,127 144,591 138,798 141,448 46 Claims on United States 46,546 59,403 74,832 83,620 81,935 78,064 78,690 77,026 71,763 75,522 47 Parent bank 31,643 34,653 47,807 54,122 53,950 49,673 51,192 50,091 45,493 48,070 48 Other banks in United States1 1 „ 12,378 12,358 11,540 11,072 10,716 11,292 49 Nonbanks1 15,607 16,033 15,958 15,863 15,554 16,160 50 Claims on foreigners 98,057 81,450 72,788 68,960 68,025 65,620 64,263 63,533 62,997 61,996 51 Other branches of parent bank 12,951 18,720 17,340 17,105 17,925 15,566 16,153 15,684 15,154 13,837 57 Banks 55,151 42,699 36,767 33,583 31,659 32,008 30,445 30,030 30,209 30,516 53 Public borrowers 10,010 6,413 6,084 5,922 5,993 6,000 5,883 6,119 6,040 6,060 54 Nonbank foreigners 19,945 13,618 12,597 12,350 12,448 12,046 11,782 11,700 11,594 11,583 55 Other assets 4,505 4,303 3,912 4,076 3,876 4,046 4,174 4,032 4,038 3,930 56 Total payable in U.S. dollars 143,743 139,605 145,091 150,191 147,678 141,768 140,947 138,706 132,834 136,064 1. Data for assets vis-a-vis other banks in the United States and vis-a-vis nonbanks are combined for dates prior to June 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • March 1985 3.14 Continued 1984 May June July Aug. Sept. Oct. Nov.? All foreign countries 57 Total, all currencies 462,847 469,712 476,539 485,930 477,667 465,688 462,115 454,076 448,284 451,947 58 Negotiable CDs2 n.a. n.a. n.a. n.a. 43,437 41,311 41,649 39,857 38,512 37,915 59 To United States 137,767 179,015 187,602 191,086 162,371 155,047 152,448 147,5% 140,006 138,354 60 Parent bank 56,344 75,621 80,537 80,353 80,710 77,795 76,966 75,039 74,756 70,339 61 Other banks in United States 19,197 33,405 29,107 27,851 22,818 22,051 19,693 20,091 18,913 18,613 62 Nonbanks 62,226 69,989 77,958 82,882 58,843 55,201 55,789 52,466 46,337 49,402 63 To foreigners 305,630 270,853 269,602 275,017 252,277 248,392 246,178 244,703 247,184 253,451 64 Other branches of parent bank 86,396 90,191 89,055 92,430 92,382 89,052 90,743 90,426 89,530 90,729 65 Banks 124,906 96,860 92,882 94,046 83,094 79,867 78,458 77,092 82,001 86,494 66 Official institutions 25,997 19,614 18,893 19,608 19,537r 21,234 20,228 21,551 19,491 20,801 67 Nonbank foreigners 68,331 64,188 68,772 68,933 57,264' 58,239 56,749 55,634 56,162 55,427 68 Other liabilities 19,450 19,844 19,335 19,827 19,582 20,938 21,840 21,920 22,582 22,227 69 Total payable in U.S. dollars 364,447 379,270 387,740 390,725 385,140 374,590 370,090 364,267 356,363 361,595 70 Negotiable CDs2 n.a. n.a. n.a. n.a. 40,868 39,004 39,603 37,620 36,094 35,608 71 To United States 134,700 175,528 183,837 186,807 157,826 150,789 147,915 143,0% 135,756 134,159 72 Parent bank 54,492 73,295 78,328 77,894 78,017 75,287 74,380 72,267 72,245 67,814 73 Other banks in United States 18,883 33,040 28,573 27,198 22,228 21,418 19,019 19,428 18,259 18,064 74 Nonbanks 61,325 69,193 76,936 81,715 57,581 54,084 54,516 51,401 45,252 48,281 75 To foreigners 217,602 192,510 194,056 193,940 176,540 174,419 171,850' 172,932 173,426 180,702 76 Other branches of parent bank 69,299 72,921 72,002 73,556 74,444 71,434 73,501' 73,412 72,204 74,552 77 Banks 79,594 57,463 57,015 54,937 46,998 44,877 42,343 42,723 46,217 50,502 78 Official institutions 20,288 15,055 13,852 14,835 14,124' 16,118 15,477 16,850 14,850 16,003 79 Nonbank foreigners 48,421 47,071 51,187 50,612 40,974' 41,990 40,529 39,947 40,155 39,645 80 Other liabilities 12,145 11,232 9,847 9,978 9,906 10,378 10,778 10,619 11,087 11,126 United Kingdom 81 Total, all currencies 157,229 161,067 158,732 159,250 159,038 155,643 154,250 147,696 147,543 148,562 82 Negotiable CDs2 n.a. n.a. n.a. n.a. 39,840 37,998 38,265 36,600 34,948 34,269 83 To United States 38,022 53,954 55,799 55,353 31,949 29,682 29,667 27,255 26,558 25,338 84 Parent bank 5,444 13,091 14,021 17,820 18,532 16,730 18,127 16,130 16,598 15,116 85 Other banks in United States 7,502 12,205 11,328 9,487 4,701 4,277 3,548 3,422 3,388 3,040 86 Nonbanks 25,076 28,658 30,450 28,046 8,716 8,675 7,992 7,703 6,572 7,182 87 To foreigners 112,255 99,567 95,847 96,530 79,802 80,261 78,469 75,926 77,985 81,152 88 Other branches of parent bank 16,545 18,361 19,038 20,791 21,298 21,459 22,252 21,536 21,023 20,846 89 Banks 51,336 44,020 41,624 41,597 32,917 31,435 30,735 28,997 32,436 34,739 90 Official institutions 16,517 11,504 10,151 10,377 9,928' 11,301 10,480 10,625 9,650 10,440 91 Nonbank foreigners 27,857 25,682 25,034 23,765 15,659' 16,066 15,002 14,768 14,876 15,127 92 Other liabilities 6,952 7,546 7,086 7,367 7,447 7,702 7,849 7,915 8,052 7,803 93 Total payable in U.S. dollars 120,277 130,261 131,167 128,446 128,922 126,294 124,260 119,337 118,084 119,213 94 Negotiable CDs2 n.a. n.a. n.a. n.a. 38,463 36,757 37,219 35,398 33,703 33,168 95 To United States 37,332 53,029 54,691 54,094 30,602 28,349 28,027 25,738 25,178 24,024 96 Parent bank 5,350 12,814 13,839 17,624 18,244 16,390 17,701 15,679 16,209 14,742 97 Other banks in United States 7,249 12,026 11,044 9,200 4,486 4,018 3,244 3,102 3,144 2,830 98 Nonbanks 24,733 28,189 29,808 27,270 7,872 7,941 7,082 6,957 5,825 6,452 99 To foreigners 79,034 73,477 73,279 70,955 56,274 57,495 55,337 54,615 55,482 58,098 100 Other branches of parent bank 12,048 14,300 15,403 15,907 17,362 17,472 18,384 18,175 17,600 17,562 101 Banks 32,298 28,810 29,320 27,308 19,541 18,197 16,984 16,016 18,309 20,262 102 Official institutions 13,612 9,668 8,279 8,760 7,945' 9,610 8,920 9,375 8,306 9,007 103 Nonbank foreigners 21,076 20,699 20,277 18,980 l l^ 12,216 11,049 11,049 11,267 11,267 104 Other liabilities 3,911 3,755 3,197 3,397 3,583 3,693 3,677 3,586 3,721 3,923 Bahamas and Caymans 105 Total, all currencies 149,108 145,156 151,532 156,656 153,836 147,730 147,127 144,591 138,798 141,448 106 Negotiable CDs2 n.a. n.a. n.a. n.a. 1,081 979 898 779 870 898 107 To United States 85,759 104,425 110,831 114,761 110,839 106,155 103,730 100,704 95,092 95,831 108 Parent bank 39,451 47,081 50,256 46,313 45,734 44,827 42,181 42,077 42,850 40,516 109 Other banks in United States 10,474 18,466 15,711 16,930 16,633 16,184 14,742 15,459 14,143 14,155 110 Nonbanks 35,834 38,878 44,864 51,518 48,472 45,144 46,807 43,168 38,099 41,160 111 To foreigners 60,012 38,274 38,362 39,376 39,334 37,814 39,598 40,213 39,855 41,747 112 Other branches of parent bank 20,641 15,7% 13,376 14,033 13,873 12,381 14,446 15,283 14,823 16,455 113 Banks 23,202 10,166 11,869 12,111 12,497 12,636 12,200 11,978 13,059 13,986 114 Official institutions 3,498 1,967 1,916 2,197 2,681 2,427 2,674 3,028 2,211 2,376 115 Nonbank foreigners 12,671 10,345 11,201 11,035 10,283 10,370 10,278 9,924 9,762 8,930 116 Other liabilities 3,337 2,457 2,339 2,519 2,582 2,782 2,901 2,895 2,981 2,972 117 Total payable in U.S. dollars 145,284 141,908 147,727 152,515 149,766 143,779 143,102 140,936 135,164 137,712 2. Before June 1984, liabilities on negotiable CDs were included in liabilities to the United States or liabilities to foreigners, according to the address of the initial purchaser. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1984 IItteemm 11998822 11998833 May June July Aug. Sept. Oct. Nov.? 1 Total1 172,718 177,951' 172,018 174,133 174,326 177,326 173,456 176,128 178,414 By type 2 Liabilities reported by banks in the United States2 24,989 25,534' 23,204 23,737 25,653 26,381 24,038 26,795 25,729 3 U.S. Treasury bills and certificates3 46,658 54,341 51,035 53,977 51,974 54,022 54,627 55,780 59,570 U.S. Treasury bonds and notes 4 Marketable 67,733 68,514 69,818 68,947 69,125 70,491 68,520 67,697 67,142 5 Nonmarketable4 8,750 7,250 6,600 6,600 6,600 5,800 5,800 5,800 5,800 6 U.S. securities other than U.S. Treasury securities5 24,588 22,305' 21,361 20,872 20,974 20,632 20,471 20,056 20,173 By area 1 Western Europe1 61,298 67,645 69,971 70,168 68,524 70,449 68,141 68,645 70,877 8 Canada 2,070 2,438 1,247 994 1,250 1,434 1,069 1,321 1,466 9 Latin America and Caribbean 6,057 6,248 6,472 7,070 7,118 8,170 7,053 8,109 8,895 10 Asia 96,034 92,572' 86,521 88,427 90,321 90,464 90,402 91,480 89,808 11 Africa 1,350 958 1,179 996 970 838 897 967 1,316 12 Other countries6 5,909 8,09c 6,628 6,478 6,143 5,971 5,894 5,606 6,052 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. NOTE. Based on Treasury Department data and on data reported to the 3. Includes nonmarketable certificates of indebtedness (including those pay- Treasury Department by banks (including Federal Reserve Banks) and securities able in foreign currencies through 1974) and Treasury bills issued to official dealers in the United States. institutions of foreign countries. 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 1983 1984 IItteemm 11998800 11998811 11998822 Dec. Mar. June Sept. 1 Banks' own liabilities 3,748 3,523 4,844 5,219 5,672 6,402 5,901 2 Banks' own claims 4,206 4,980 7,707 7,231 9,034 9,623 9,006 3 Deposits 2,507 3,398 4,251 2,731 4,024 4,280 3,696 4 Other claims 1,699 1,582 3,456 4,501 5,010 5,344 5,310 5 Claims of banks' domestic customers1 962 971 676 1,059 361 227 281 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

A56 International Statistics • March 1985 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1984 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998811AA 11998822 11998833 May June July Aug. Sept. Oct. NOV.P 1 All foreigners 243,889 307,056 369,584 393,754 400,492 396,376 394,474 398,598' 389,745 398,347 2 Banks' own liabilities 163,817 227,089 279,002 301,352 303,779 300,731 294,632 299,732' 290,249 296,731 3 Demand deposits 19,631 15,889 17,485 17,196 17,621 16,384 16,229 17,198' 16,485 17,504 4 Time deposits' 29,039 68,797 90,597 103,390 105,347 109,392 107,541 111,901' 109,579 112,521 5 Other2 17,647 23,184 25,815 23,722 23,100 25,546 23,630 22,087' 24,417 23,668 6 Own foreign offices3 97,500 119,219 145,105 157,044 157,711 149,409 147,232 148,546' 139,767 143,038 7 Banks' custody liabilities4 80,072 79,967 90,582 92,402 96,713 95,646 99,842 98,866 99,496 101,616 8 U.S. Treasury bills and certificates5 55,315 55,628 68,669 68,511 72,191 71,244 74,148 73,160 73,829 76,531 9 Other negotiable and readily transferable instruments6 18,788 20,636 17,529 18,780 19,518 19,411 20,567 20,833 20,281 19,669 10 Other 5,970 3,702 4,385 5,112 5,003 4,990 5,127 4,873 5,386 5,417 11 Nonmonetary international and regional organizations7 2,721 4,922 5,957 5,316 5,055 5,344 5,748 6,279 4,801 5,831 12 Banks' own liabilities 638 1,909 4,632 2,229 2,920 2,612 1,960 3,305 2,053 2,779 13 Demand deposits 262 106 297 255 182 142 325 209 144 354 14 Time deposits1 58 1,664 3,584 1,640 2,209 2,213 1,446 2,526 1,513 2,114 15 Other2 318 139 750 335 529 257 189 570 396 311 16 Banks' custody liabilities4 2,083 3,013 1,325 3,087 2,135 2,732 3,788 2,975 2,748 3,052 17 U.S. Treasury bills and certificates 541 1,621 463 2,057 887 1,709 2,722 1,834 1,455 1,448 18 Other negotiable and readily transferable instruments6 1,542 1,392 862 1,030 1,248 1,023 1,067 1,140 1,292 1,604 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 79,126 71,647 79,876 74,240 77,714 77,627 80,403 78,665' 82,575 85,299 21 Banks' own liabilities 17,109 16,640 19,427 16,859 16,616 18,379 18,222 16,274' 19,149 18,688 22 Demand deposits 2,564 1,899 1,837 1,729 1,898 1,875 2,003 1,969' 1,725 2,184 23 Time deposits1 4,230 5,528 7,318 7,263 7,548 7,958 8,060 7,877' 8,602 9,349 24 Other2 10,315 9,212 10,272 7,868 7,169 8,546 8,158 6,429' 8,823 7,155 25 Banks' custody liabilities4 62,018 55,008 60,448 57,380 61,098 59,248 62,181 62,391 63,426 66,611 26 U.S. Treasury bills and certificates5 52,389 46,658 54,341 51,035 53,977 51,974 54,022 54,627 55,780 59,570 27 Other negotiable and readily transferable instruments6 9,581 8,321 6,082 6,307 7,030 7,265 8,149 7,746 7,626 7,010 28 Other 47 28 25 38 91 9 10 18 20 31 29 Banks9 136,008 185,881 226,810 249,204 251,783 247,716 241,604 246,077' 234,256 238,282 30 Banks' own liabilities 124,312 169,449 205,270 226,054 227,195 222,401 216,133 221,185' 209,597 214,747 31 Unaffiliated foreign banks 26,812 50,230 60,165 69,010 69,484 72,993 68,900 72,64<K 69,830 71,709 32 Demand deposits 11,614 8,675 8,773 8,879 9,074 8,203 7,884 8,453' 8,386 8,528 33 Time deposits1 8,720 28,386 37,412 45,287 45,699 48,719 46,853 49,763' 46,818 47,664 34 Other2 6,477 13,169 13,979 14,845 14,711 16,070 14,164 14,424' 14,625 15,517 35 Own foreign offices3 97,500 119,219 145,105 157,044 157,711 149,409 147,232 148,546' 139,767 143,038 36 Banks' custody liabilities4 11,696 16,432 21,540 23,150 24,588 25,315 25,471 24,892 24,659 23,534 37 U.S. Treasury bills and certificates 1,685 5,809 10,178 11,182 12,771 13,022 12,766 12,234 12,362 11,409 38 Other negotiable and readily transferable instruments6 4,400 7,857 7,485 7,523 7,446 7,867 8,172 8,421 7,802 7,328 39 Other 5,611 2,766 3,877 4,445 4,371 4,426 4,534 4,236 4,494 4,797 40 Other foreigners 26,035 44,606 56,942 64,994 65,940 65,689 66,719 67,576 68,113 68,936 41 Banks' own liabilities 21,759 39,092 49,672 56,209 57,048 57,338 58,318 58,968 59,449 60,517 42 Demand deposits 5,191 5,209 6,577 6,333 6,466 6,163 6,017 6,567 6,231 6,438 43 Time deposits 16,030 33,219 42,283 49,201 49,891 50,502 51,182 51,735' 52,646 53,394 44 Other2 537 664 675 691 672 1,120 665' 573 685 45 Banks' custody liabilities4 4,276 5,514 7,269 8,785 8,892 8,351 8,401 8,609 8,664 8,419 46 U.S. Treasury bills and certificates 699 1,540 3,686 4,238 4,556 4,540 4,639 4,465 4,232 4,103 47 Other negotiable and readily transferable instruments6 3,265 3,065 3,100 3,919 3,795 3,255 3,180 3,525 3,560 3,727 48 Other 312 908 483 628 541 556 582 619 872 588 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,747 14,307 10,407 10,630 10,986 10,930 11,415 11,048' 10,704 10,416 • Liabilities and claims of banks in the United States were increased, 4. Financial claims on residents of the United States, other than long-term beginning in December 1981, by the shift from foreign branches to international securities, held by or through reporting banks. banking facilities in the United States of liabilities to, and claims on, foreign 5. Includes nonmarketable certificates of indebtedness and Treasury bills residents. issued to official institutions of foreign countries. 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 foreign bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A57 3.17 Continued 1984 AArreeaa aanndd ccoouunnttrryy 11998811AA 11998822 11998833 May June July Aug. Sept. Oct. Nov.? 1 Total 243,889 307,056 369,584 393,754 400,492 396,376 394,474 398,598' 389,745 398,347 2 Foreign countries 241,168 302,134 363,627 388,438 395,437 391,033 388,726 392,319' 384,944 392,516 3 Europe 91,275 117,756 138,045 151,532 156,041 152,529 150,742 147,244' 146,914 149,390 4 Austria 596 519 585 867 770 720 758 693 744 627 5 Belgium-Luxembourg 4,117 2,517 2,709 4,680 5,138 4,775 4,789 4,278 4,093 3,613 6 Denmark 333 509 466 378 291 429 408 341 337 434 7 Finland 296 748 531 405 1,248 947 489 638 427 487 8 France 8,486 8,171 9,441 12,119 11,670 12,031 11,539 11,547 11,621 11,934 9 Germany 7,645 5,351 3,599 3,990 3,663 3,961 3,758 3,036 3,330 3,375 10 Greece 463 537 520 594 596 600 566 567 609 602 11 Italy 7,267 5,626 8,462 8,315 8,155 6,960 8,370 8,266 8,976 11,056 1? Netherlands 2,823 3,362 4,290 5,030 5,735 5,615 5,116 5,239' 4,420 5,079 13 Norway 1,457 1,567 1,673 1,536 2,084 1,624 2,026 1,912' 1,895 1,685 14 Portugal 354 388 373 401 425 440 539 434 540 552 IS Spain 916 1,405 1,603 1,663 1,774 1,825 1,971 1,984 1,905 1,873 16 Sweden 1,545 1,390 1,799 1,962 1,486 1,833 2,095 2,008 1,945 1,898 17 Switzerland 18,716 29,066 32,219 32,704 35,137 33,311 32,876 32,995' 32,518 31,394 18 Turkey 518 296 467 444 315 340 354 320 557 457 19 United Kingdom 28,286 48,172 60,683 69,006 69,885 69,767 67,976 65,445' 65,927 66,877 20 Yugoslavia 375 499 562 511 556 525 435 514 579 565 21 Other Western Europe1 6,541 7,006 7,403 6,389 6,459 6,349 6,101 6,247' 5,966 6,337 ?.? U.S.S.R 49 50 65 53 41 31 47 41 50 54 23 Other Eastern Europe2 493 576 596 484 612 447 532 738 476 490 24 Canada 10,250 12,232 16,026 17,455 17,572 19,221 18,170 17,536' 16,766 16,662 Latin America and Caribbean 85,223 114,163 140,174 152,187 151,684 148,023 149,072 152,069' 145,767 149,515 26 Argentina 2,445 3,578 4,038 4,583 4,535 4,439 4,411 4,384' 4,484 4,621 77 Bahamas 34,856 44,744 55,842 62,634 61,141 58,414 58,177 58,321' 52,924 55,013 7,8 Bermuda 765 1,572 2,328 3,276 2,598 2,544 2,763 3,177 3,043 3,304 29 Brazil 1,568 2,014 3,168 3,568 3,690 4,120 4,697 4,427 4,714 4,950 30 British West Indies 17,794 26,381 34,545 33,847 34,678 33,953 33,789 35,926' 34,404 34,301 31 Chile 664 1,626 1,842 1,887 1,970 2,176 2,070 1,874 2,052 2,185 32 Colombia 2,993 2,594 1,689 1,767 1,809 1,801 1,791 1,957 2,022 2,057 33 Cuba 9 9 8 10 9 7 7 8 8 8 34 Ecuador 434 455 1,047 881 908 845 951 931 924 1,029 35 Guatemala 479 670 788 842 825 811 831 810 855 884 36 Jamaica 87 126 109 126 157 116 126 180 122 110 37 Mexico 7,235 8,377 10,392 11,874 11,976 11,722 12,268 12,869 12,466 13,426 38 Netherlands Antilles 3,182 3,597 3,879 4,666 4,459 4,253 4,261 4,179 4,186 4,180 39 Panama 4,857 4,805 5,924 6,283 6,652 6,664 6,506 6,811' 6,578 6,843 40 Peru 694 1,147 1,166 1,249 1,279 1,278 1,273 1,343 1,304 1,258 41 Uruguay 367 759 1,244 1,380 1,309 1,302 1,319 1,418 1,361 1,309 42. Venezuela 4,245 8,417 8,632 9,432 10,129 9,684 10,046 9,615 10,367 10,011 43 Other Latin America and Caribbean 2,548 3,291 3,535 3,882 3,559 3,895 3,786 3,839 3,952 4,027 44 49,822 48,716 58,488 57,199 60,201 61,726 61,540 66,397' 66,316 67,180 China 45 Mainland 158 203 249 400 469 644 671 876 861 842 46 Taiwan 2,082 2,761 3,997 4,364 4,578 4,797 4,799 4,970 5,041 5,355 47 Hong Kong 3,950 4,465 6,657 5,862 6,416 6,117 6,110 6,977' 6,235 6,533 48 India 385 433 464 646 498 621 800 644 616 606 49 Indonesia 640 857 997 897 1,281 911 1,137 939 1,339 884 50 Israel 592 606 1,722 754 768 804 726 750 2,017 1,023 SI Japan 20,750 16,078 18,079 20,522 19,433 19,442 19,792 21,310' 19,936 20,750 57 Korea 2,013 1,692 1,648 1,337 1,276 1,393 1,641 1,572 1,552 1,609 53 Philippines 874 770 1,234 1,130 1,032 976 1,084 1,020 1,097 1,252 54 Thailand 534 629 747 730 875 779 782 741 980 1,458 55 Middle-East oil-exporting countries3 12,992 13,433 12,970 11,615 12,341 14,748 13,200 13,754' 13,883 13,438 56 Other Asia 4,853 6,789 9,725 8,943 11,234 10,496 10,796 12,844' 12,759 13,432 57 Africa 3,180 3,124 2,827 3,140 3,331 3,145 3,052 3,018 3,338 3,492 58 Egypt 360 432 671 698 893 858 743 629 763 739 59 Morocco 32 81 84 132 133 128 119 136 115 117 60 South Africa 420 292 449 329 420 409 350 318 459 460 61 Zaire 26 23 87 124 136 99 101 148 141 163 62 Oil-exporting countries4 1,395 1,280 620 895 816 706 775 821 998 1,034 63 Other Africa 946 1,016 917 962 932 946 964 966 861 978 64 Other countries 1,419 6,143 8,067 6,925 6,609 6,389 6,150 6,055 5,844 6,277 65 Australia 1,223 5,904 7,857 6,685 6,316 6,095 5,749 5,687 5,464 5,598 66 All other 196 239 210 240 293 294 401 368 379 679 67 Nonmonetary international and regional organizations 2,721 4,922 5,957 5,316 5,055 5,344 5,748 6,279 4,801 5,831 68 International 1,661 4,049 5,273 4,741 4,436 4,740 4,973 5,411 4,086 5,055 69 Latin American regional 710 517 419 428 438 431 445 488 518 593 70 Other regional5 350 357 265 146 180 173 330 381 196 183 • 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. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • March 1985 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 1984 AArreeaa aanndd ccoouunnttrryy 11998811AA 11998822 11998833 May June July Aug. Sept/ Oct. Nov.? 1 Total 251,589 355,705 391,326 399,796 408,073 405,225 396,024 393,959 383,353 380,610 2 Foreign countries 251,533 355,636 391,163 399,693 407,959 405,016 395,826 393,888 382,671 380,125 3 Europe 49,262 85,584 91,874 98,340 104,011 102,253 100,085 98,173 95,343 94,206 4 Austria 121 229 401 456 632 646 581 572 521 565 5 Belgium-Luxembourg 2,849 5,138 5,639 6,626 6,734 6,063 6,156 6,286 5,363 4,955 6 Denmark 187 554 1,275 1,118 1,212 1,204 1,103 1,057 544 520 7 Finland 546 990 1,044 1,041 1,100 928 872 882 887 1,109 8 France 4,127 7,251 8,766 9,029 9,393 9,732 10,010 9,094 8,822 9,293 9 Germany 940 1,876 1,294 1,111 1,175 1,142 1,257 1,220 1,097 1,260 10 Greece 333 452 476 940 1,036 979 974 1,086 917 806 11 Italy 5,240 7,560 9,018 7,901 8,556 8,331 7,832 7,803 7,755 8,850 12 Netherlands 682 1,425 1,292 1,787 1,781 1,811 1,440 1,470 1,185 1,229 13 Norway 384 572 690 719 729 648 649 649 676 602 14 Portugal 529 950 1,114 1,366 1,463 1,503 1,433 1,387 1,346 1,262 15 Spain 2,095 3,744 3,583 3,700 3,792 3,955 3,700 3,355 3,184 3,010 16 Sweden 1,205 3,038 3,358 2,957 3,206 2,677 2,404 2,596 2,362 2,313 17 Switzerland 2,213 1,639 1,856 1,570 1,904 1,520 1,566 1,741 2,067 2,264 18 Turkey 424 560 812 1,047 1,160 1,210 1,145 1,132 1,145 1,097 19 United Kingdom 23,849 45,781 47,273 52,850 55,941 55,543 54,727 53,676 53,246 50,925 20 Yugoslavia 1,225 1,430 1,718 1,775 1,808 1,817 1,857 1,888 1,868 1,898 21 Other Western Europe1 211 368 477 565 571 800 732 660 658 603 22 U.S.S.R 377 263 192 172 175 172 175 176 159 169 23 Other Eastern Europe2 1,725 1,762 1,598 1,610 1,643 1,573 1,471 1,442 1,541 1,476 24 Canada 9,193 13,678 16,341 17,879 17,524 18,350 16,326 16,604 16,630 15,869 25 Latin America and Caribbean 138,347 187,969 205,426 210,153 208,990 209,162 203,428 203,001 198,314 198,799 26 Argentina 7,527 10,974 11,749 11,071 11,162 11,381 11,021 11,108 11,012 10,989 27 Bahamas 43,542 56,649 59,597 61,526 58,963 58,475 56,609 55,216 52,006 54,080 28 Bermuda 346 603 566 845 559 543 509 508 551 638 29 Brazil 16,926 23,271 24,667 26,045 26,226 26,013 25,991 26,140 26,145 26,107 30 British West Indies 21,981 29,101 35,488 36,788 37,490 38,754 35,356 36,002 34,830 33,553 31 Chile 3,690 5,513 6,072 6,146 6,490 6,648 6,619 6,836 6,783 6,703 32 Colombia 2,018 3,211 3,745 3,524 3,559 3,490 3,444 3,438 3,343 3,406 33 Cuba 3 3 0 0 21 0 0 0 0 0 34 Ecuador 1,531 2,062 2,307 2,332 2,373 2,396 2,380 2,365 2,452 2,431 35 Guatemala3 124 124 129 127 125 124 130 120 141 148 36 Jamaica3 62 181 215 220 216 219 216 225 234 222 37 Mexico 22,439 29,552 34,807 35,474 35,849 35,456 35,016 35,602 35,359 35,294 38 Netherlands Antilles 1,076 839 1,154 1,164 1,312 1,381 1,302 1,296 1,337 1,337 39 Panama 6,794 10,210 7,848 7,990 7,843 7,660 8,202 7,639 7,537 7,351 40 Peru 1,218 2,357 2,536 2,438 2,473 2,487 2,401 2,397 2,406 2,358 41 Uruguay 157 686 977 887 950 961 930 934 962 990 42 Venezuela 7,069 10,643 11,287 11,019 11,174 10,861 11,137 10,982 11,029 10,992 43 Other Latin America and Caribbean 1,844 1,991 2,283 2,557 2,205 2,313 2,165 2,191 2,185 2,199 44 49,851 6600,,995522 67,950 6633,,661155 6677,,559977 6655,,116677 6655,,880088 66,006 6622,,335544 6611,,338822 China 45 Mainland 107 214 292 348 554 640 639 563 411 553 46 Taiwan 2,461 2,288 1,908 1,562 2,202 2,011 1,573 1,651 1,588 1,679 47 Hong Kong 4,132 6,787 8,473 7,470 8,141 6,967 6,809 7,139 7,155 6,933 48 India 123 222 330 362 355 323 295 354 302 381 49 Indonesia 352 348 805 983 969 952 906 886 821 797 50 Israel 1,567 2,029 1,832 1,822 1,910 1,827 1,869 1,802 1,890 1,938 51 Japan 26,797 28,379 30,580 27,153 29,264 27,727 28,995 30,601 26,861 26,391 52 Korea 7,340 9,387 9,962 9,595 9,653 9,799 9,558 9,586 9,256 8,952 53 Philippines 1,819 2,625 2,107 2,433 2,495 2,650 2,756 2,578 2,510 2,487 54 Thailand 565 643 1,104 1,143 949 974 1,089 1,113 1,072 1,092 55 Middle East oil-exporting countries4 1,581 3,087 4,954 5,200 5,118 5,214 4,924 4,506 4,645 4,670 56 Other Asia 3,009 4,943 5,603 5,543 5,986 6,081 6,396 5,227 5,842 5,509 57 Africa 3,503 5,346 6,654 6,764 6,840 7,048 6,969 6,830 6,862 6,680 58 Egypt 238 322 747 666 734 638 613 650 674 693 59 Morocco 284 353 440 561 497 549 556 545 582 536 60 South Africa 1,011 2,012 2,634 2,974 3,065 3,307 3,281 3,152 3,140 2,960 61 Zaire 112 57 33 28 39 43 30 18 18 19 62 Oil-exporting countries5 657 801 1,073 967 1,004 1,025 996 944 938 911 63 Other 1,201 1,802 1,727 1,568 1,502 1,485 1,493 1,522 1,510 1,562 64 Other countries 1,376 2,107 2,918 2,942 2,996 3,036 3,210 3,274 3,169 3,189 65 Australia 1,203 1,713 2,276 2,345 2,435 2,481 2,582 2,673 2,507 2,487 66 All other 172 394 642 597 561 554 628 601 661 702 67 Nonmonetary international and regional organizations6 56 68 164 103 114 209 198 71 681 485 • Liabilities and claims of banks in the United States were increased, 3. Included in "Other Latin America and Caribbean" through March 1978. beginning in December 1981, by the shift from foreign branches to international 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and banking facilities in the United States of liabilities to, and claims on, foreign United Arab Emirates (Trucial States). residents. 5. Comprises Algeria, Gabon, Libya, and Nigeria. 1. Includes the Bank for International Settlements. Beginning April 1978, also 6. Excludes the Bank for International Settlements, which is included in includes Eastern European countries not listed in line 23. "Other Western Europe." 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German NOTE. Data for period before April 1978 include claims of banks' domestic Democratic Republic, Hungary, Poland, and Romania. customers on foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 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 1984 TTyyppee ooff ccllaaiimm 11998811AA 11998822 11998833 May June July Aug. Sept.' Oct. Nov.'' 1 Total 222222288888887777777,,,,,,,555555555555557777777 333333399999996666666,,,,,,,000000011111115555555 444444422222226666666,,,,,,,222222222222229999999 444444444444444444444,,,,,,,777777711111116666666 444444422222227777777,,,,,,,999999988888885555555 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 222222255555551111111,,,,,,,555555588888889999999 333333355555555555555,,,,,,,777777700000005555555 333333399999991111111,,,,,,,333333322222226666666 399,796 444444400000008888888,,,,,,,000000077777773333333 405,225 396,024 333333399999993333333,,,,,,,999999955555559999999 383,353 380,610 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 33333331111111,,,,,,,222222266666660000000 44444445555555,,,,,,,444444422222222222222 55555557777777,,,,,,,555555533333330000000 58,092 55555559999999,,,,,,,333333300000000000000 59,889 58,423 55555559999999,,,,,,,666666611111117777777 61,329 60,796 44 OOwwnn ffoorreeiiggnn ooffffiicceess11 99999996666666,,,,,,,666666655555553333333 111111122222227777777,,,,,,,222222299999993333333 111111144444446666666,,,,,,,222222211111119999999 155,703 111111155555557777777.......555555533333339999999 156,233 153,432 111111155555552222222,,,,,,,000000033333330000000 143,540 140,544 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 77777774444444,,,,,,,777777700000004444444 111111122222221111111,,,,,,,333333377777777777777 111111122222224444444,,,,,,,000000055555551111111 125,654 111111133333330000000.......555555544444440000000 127,679 123,786 111111122222222222222,,,,,,,444444488888882222222 121,011 121,368 66 DDeeppoossiittss 22222223333333,,,,,,,333333388888881111111 44444444444444,,,,,,,222222222222223333333 44444447777777,,,,,,,000000066666666666666 47,066 44444449999999,,,,,,,777777722222224444444 48,337 46,990 44444447777777,,,,,,,333333377777779999999 46,775 45,782 77 OOtthheerr 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 77777776666666,,,,,,,999999988888885555555 78,588 88888880000000,,,,,,,888888811111115555555 79,342 76,796 77777775555555,,,,,,,111111100000003333333 74,236 75,587 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,666666611111114444444 66666663333333,,,,,,,555555522222227777777 60,347 66666660000000,,,,,,,666666699999994444444 61,424 60,383 55555559999999,,,,,,,888888833333330000000 57,473 57,902 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 .... 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333334444444,,,,,,,999999900000003333333 33333336666666,,,,,,,666666644444443333333 33333334444444,,,,,,,000000022222226666666 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,999999966666669999999 3333333,,,,,,,444444455555558888888 4444444,,,,,,,555555577777775555555 11 Negotiable and readily transferable 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222226666666,,,,,,,000000066666664444444 22222225555555,,,,,,,888888822222223333333 22222223333333,,,,,,,333333399999996666666 12 Outstanding collections and other 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 5555555,,,,,,,888888877777770000000 7777777,,,,,,,333333366666662222222 6666666,,,,,,,000000055555555555555 13 MEMO: Customer liability on 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,111111155555553333333 33333337777777,,,,,,,888888822222220000000 44444442222222,,,,,,,666666655555557777777 33333338888888,,,,,,,555555588888886666666 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 .... 40,369 42,499 45,856' 47,888' 44,197' 42,970' 43,718' 43,407 46,867 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 A Liabilities and claims of banks in the United States were increased, parent foreign bank. beginning in December 1981, by the shift from foreign branches to international 2. Assets owned by customers of the reporting bank located in the United banking facilities in the United States of liabilities to, and claims on, foreign States that represent claims on foreigners held by reporting banks for the account residents. of their domestic customers. NOTE. Beginning April 1978, data for banks' own claims are given on a monthly 3. Principally negotiable time certificates of deposit and bankers acceptances. basis, but the data for claims of banks' own domestic customers are available on a quarterly basis only. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1983 1984 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998811AA 11998822 Sept. Dec. Mar. June Sept. 1 Total 154,590 228,150 236,952 243,310 237,642 249,927 240,674 By borrower 2 Maturity of 1 year or less1 116,394 173,917 175,957 176,270 162,998 172,410 162,914 3 Foreign public borrowers 15,142 21,256 25,138 24,034 20,444 21,010 21,059 4 All other foreigners 101,252 152,661 150,819 152,237 142,554 151,400 141,854 5 Maturity of over 1 year1 38,197 54,233 60,994 67,040 74,644 77,517 77,760 6 Foreign public borrowers 15,589 23,137 28,297 32,495 36,306 37,768 38,410 7 All other foreigners 22,608 31,095 32,697 34,544 38,338 39,749 39,350 By area Maturity of 1 year or less1 8 Europe 28,130 50,500 53,489 56,064 53,764 59,405 56,769 9 Canada 4,662 7,642 6,658 6,211 6,579 6,990 5,8% 10 Latin America and Caribbean 48,717 73,291 76,099 73,637 65,559 64,780 61,479 11 Asia 31,485 37,578 33,686 34,571 31,286 34,793 32,252 12 Africa 2,457 3,680 4,570 4,199 4,472 4,790 4,798 13 All other2 943 1,226 1,454 1,589 1,340 1,652 1,720 Maturity of over 1 year1 14 Europe 8,100 11,636 12,356 13,365 13,063 12,827 11,269 15 Canada 1,808 1,931 1,760 1,857 2,038 2,203 1,801 16 Latin America and Caribbean 25,209 35,247 39,185 43,603 50,913 54,278 56,577 17 Asia 1,907 3,185 4,735 4,828 5,133 5,107 5,106 18 Africa 900 1,494 1,819 2,286 2,291 1,865 1,857 19 All other2 272 740 1,139 1,101 1,206 1,237 1,150 • Liabilities and claims of banks in the United States were increased, 1. Remaining time to maturity, beginning in December 1981, by the shift from foreign branches to international 2. Includes nonmonetary international and regional organizations, 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 • March 1985 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks' Billions of dollars, end of period 1982 1983 1984 AArreeaa oorr ccoouunnttrryy 11998800 11998811 Sept. Dec. Mar. June Sept. Dec. Mar. June7 Sept.? 1 Total 352.0 415.2 438.4 438.7 443.8 439.9 432.0 438.0 434.0 429.8' 408.6 2 G-10 countries and Switzerland 162.1 175.5 175.4 179.7 182.7 177.3 169.1 168.2 165.7 157.8 148.6 3 Belgium-Luxembourg 13.0 13.3 13.6 13.1 13.7 13.3 12.6 12.4 11.0 10.8 9.8 4 France 14.1 15.3 15.8 17.1 17.1 17.1 16.2 16.3 15.9 14.3 14.4 5 Germany 12.1 12.9 12.2 12.7 13.5 12.6 11.6 11.3 11.7 11.0 10.0 6 Italy 8.2 9.6 9.7 10.3 10.2 10.5 10.0 11.4 11.2 11.5 9.7 7 Netherlands 4.4 4.0 3.8 3.6 4.3 4.0 3.6 3.5 3.3 3.0 3.4 8 Sweden 2.9 3.7 4.7 5.0 4.3 4.7 4.9 5.1 5.2 4.3 3.5 9 Switzerland 5.0 5.5 5.1 5.0 4.6 4.8 4.2 4.3 4.3 4.2 3.9 10 United Kingdom 67.4 70.1 70.3 72.1 73.3 70.7 67.8 65.3 64.5 60.2 57.9 11 Canada 8.4 10.9 11.0 10.4 12.5 10.8 9.0 8.3 8.7 8.9 8.1 12 Japan 26.5 30.2 29.3 30.2 29.2 28.7 29.2 30.1 30.0 29.5 27.9 13 Other developed countries 21.6 28.4 32.7 33.7 34.0 34.5 34.3 36.1 35.7 37.1 36.3 14 Austria 1.9 1.9 2.0 1.9 2.1 2.1 1.9 1.9 2.0 2.0 1.8 15 Denmark 2.3 2.3 2.5 2.4 3.3 3.4 3.3 3.4 3.4 3.1 2.9 16 Finland 1.4 1.7 1.8 2.2 2.1 2.1 1.8 2.4 2.1 2.3 1.9 17 Greece 2.8 2.8 2.6 3.0 2.9 2.9 2.9 2.8 3.0 3.3 3.2 18 Norway 2.6 3.1 3.4 3.3 3.3 3.4 3.2 3.3 3.2 3.2 3.2 19 Portugal .6 1.1 1.6 1.5 1.4 1.4 1.4 1.5 1.4 1.7 1.6 20 4.4 6.6 7.7 7.5 7.1 7.2 7.2 7.1 7.1 7.3 6.9 21 Turkey 1.5 1.4 1.5 1.4 1.5 1.4 1.5 1.7 1.9 2.0 1.9 22 Other Western Europe 1.7 2.1 2.1 2.3 2.3 2.0 2.1 1.8 1.8 1.9 1.7 23 South Africa 1.1 2.8 3.6 3.7 3.6 3.9 4.7 4.7 4.8 4.7 5.0 24 Australia 1.3 2.5 4.0 4.4 4.6 4.6 4.4 5.5 5.2 5.7 6.2 25 OPEC countries2 22.7 24.8 27.3 27.4 28.5 28.3 27.2 28.9 28.6 26.7 24.9 26 Ecuador 2.1 2.2 2.3 2.2 2.2 2.2 2.1 2.2 2.1 2.1 2.1 27 Venezuela 9.1 9.9 10.4 10.5 10.4 10.4 9.8 9.9 9.7 9.5 9.0 28 Indonesia 1.8 2.6 2.9 3.2 3.5 3.2 3.4 3.8 4.0 4.0 3.8 29 Middle East countries 6.9 7.5 9.0 8.7 9.3 9.5 9.1 10.0 9.8 8.4 7.4 30 African countries 2.8 2.5 2.7 2.8 3.0 3.0 2.8 3.0 3.0 2.7 2.5 31 Non-OPEC developing countries 77.4 96.3 104.1 107.1 108.1 108.8 109.8 111.5 112.0 113.3' 111.9 Latin America 32 Argentina 7.9 9.4 9.2 8.9 9.0 9.4 9.5 9.5 9.5 9.2 9.1 33 Brazil 16.2 19.1 22.4 22.9 23.2 22.7 23.1 23.1 25.1 25.4 26.3 34 Chile 3.7 5.8 6.2 6.3 6.0 5.8 6.3 6.4 6.5 6.7 7.1 35 Colombia 2.6 2.6 2.8 3.1 2.9 3.2 3.2 3.2 3.1 3.0 2.9 36 Mexico 15.9 21.6 25.0 24.5 25.1 25.3 25.9 26.1 25.6 26.7 26.1 37 1.8 2.0 2.6 2.6 2.4 2.6 2.4 2.4 2.3 2.3 2.2 38 Other Latin America 3.9 4.1 4.3 4.0 4.2 4.3 4.2 4.2 4.3 4.0 3.9 Asia China 39 Mainland .2 .2 .2 .2 .2 .2 .2 .3 .3 .6 .5 40 Taiwan 4.2 5.1 4.9 5.3 5.1 5.1 5.2 5.3 4.9 5.3' 5.2 41 .3 .3 .5 .6 .7 .7 .8 1.0 1.0 1.0 1.1 42 1.5 2.1 1.9 2.3 2.0 2.3 1.7 1.9 1.6 1.9 1.7 43 Korea (South) 7.1 9.4 9.4 10.9 10.9 10.9 10.9 11.4 11.1 11.2 10.1 44 Malaysia 1.1 1.7 1.8 2.1 2.5 2.6 2.8 2.9 2.8 2.7 3.0 45 Philippines 5.1 6.0 6.1 6.3 6.6 6.4 6.2 6.2 6.7 6.3 5.9 46 Thailand 1.6 1.5 1.3 1.6 1.6 1.8 1.7 2.1 1.9 1.8 1.8 47 Other Asia .6 1.0 1.3 1.1 1.4 1.2 1.0 1.0 .9 1.1 1.2 Africa 48 Egypt .8 1.1 1.3 1.2 1.1 1.3 1.4 1.5 1.5 1.4 1.2 49 Morocco .7 .7 .8 .7 .8 .8 .8 .8 .8 .8 .8 50 Zaire .2 .2 .1 .1 .1 .1 .1 .1 .1 .1 .1 51 Other Africa3 2.1 2.3 2.2 2.4 2.3 2.2 2.4 2.3 2.2 1.9 1.9 52 Eastern Europe 7.4 7.8 6.3 6.2 5.7 5.8 5.3 5.3 4.9 4.9 4.6 53 U.S.S.R .4 .6 .3 .3 .3 .4 .2 .2 .2 .2 .2 54 Yugoslavia 2.3 2.5 2.2 2.2 2.2 2.3 2.3 2.4 2.3 2.3 2.3 55 Other 4.6 4.7 3.8 3.7 3.2 3.0 2.8 2.8 2.5 2.4 2.1 56 Offshore banking centers 47.0 63.7 72.2 66.8 67.9 69.1 69.4 71.1 70.7 72.8 65.6 57 Bahamas 13.7 19.0 21.4 19.0 18.5 20.7 21.8 22.0 24.6 27.0 23.5 58 Bermuda .6 .7 .8 .9 1.0 .8 .8 .9 .7 .7 1.0 59 Cayman Islands and other British West Indies 10.6 12.4 13.6 12.9 12.5 12.6 11.0 12.7 11.4 11.6 10.2 60 Netherlands Antilles 2.1 3.2 3.3 3.3 3.1 2.6 4.1 4.2 3.3 3.3 3.3 61 Panama4 5.4 7.7 8.1 7.6 7.1 6.6 5.7 6.0 6.3 6.4 5.6 62 Lebanon .2 .2 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 8.1 11.8 15.1 13.9 15.1 14.5 15.2 14.9 14.4 13.5 12.6 64 Singapore 5.9 8.7 9.8 9.2 10.4 11.2 10.5 10.3 9.9 10.2 9.5 65 Others5 .3 .1 .0 .0 .0 .0 .1 .0 .0 .0 .0 66 Miscellaneous and unallocated6 14.0 18.8 20.4 17.9 16.9 16.2 16.9 17.0 16.4 17.3 16.8 1. The banking offices covered by these data are the U.S. offices and foreign Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. as Bahrain and Oman (not formally members of OPEC). Offices not covered include (1) U.S. agencies and branches offoreign banks, and 3. Excludes Liberia. (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are 4. Includes Canal Zone beginning December 1979. adjusted to exclude the claims on foreign branches held by a U.S. office or another 5. Foreign branch claims only. foreign branch of the same banking institution. The data in this table combine 6. Includes New Zealand, Liberia, and international and regional organizaforeign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims tions. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 7. Beginning with June 1984 data, reported claims held by foreign branches foreign banks and those constituting claims on own foreign branches). have been reduced by an increase in the reporting threshold for "shell" branches 2. Besides the Organization of Petroleum Exporting Countries shown individ- from $50 million to $150 million equivalent in total assets, the threshold now ually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq, applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1983 1984 Type, and area or country 998800 11998811 11998822 June Sept. Dec. Mar. June 1 Total 29,434 28,618 27,512' 23,70C 26,325' 24,866' 29,189' 33,681 2 Payable in dollars 25,689 24,909 24,28c 20,864' 23,546' 21,918' 25,968' 30,517 3 Payable in foreign currencies 3,745 3,709 3,232 2,836' 2,78C 2,948' 3,221' 3,164 By type 4 Financial liabilities 11,330 12,157 11,066 11,115' 10.90C 10,349' 14,165' 18,327 5 Payable in dollars 8,528 9,499 8,858 9,144 9,025 8,619 12,134' 16,297 6 Payable in foreign currencies 2,802 2,658 2,208 1,971' 1,875' 1,73C 2,031' 2,030 7 Commercial liabilities 18,104 16,461 16,446' 12,585' 15,425' 14,5^ 15,024 15,354 8 Trade payables 12,201 10,818 9,438' 6,933' 8,567' 7,736' 7,865 7,854 9 Advance receipts and other liabilities .., 5,903 5,643 7,008' 5,652' 6,858' 6,78C 7,159 7,500 10 Payable in dollars 17,161 15,409 15,423' 11,72c 14,521' 13,299' 13,834 14,220 11 Payable in foreign currencies 943 1,052 1,023 865 904 1,218 1,190 1,134 By area or country Financial liabilities 12 Europe 6,481 6,825 6,501 6,335 6,014 5,675 7,071' 7,230 13 Belgium-Luxembourg 479 471 505 436 379 302 428' 359 14 France 327 709 783 802 785 820 933 900 15 Germany 582 491 467 457 449 498 519' 561 16 Netherlands 681 748 711 728 730 581 527' 583 17 Switzerland 354 715 792 606 500 486 641 563 18 United Kingdom 3,923 3,565 3,102 3,132 3,014 2,839 3,790' 4,013 19 Canada 964 963 746 876 788 768 798 735 20 Latin America and Caribbean 3,136 3,356 2,751 2,623 2,737 2,609 4,914' 8,888 21 Bahamas 964 1,279 904 776 784 751 1,419' 3,603 22 Bermuda 1 7 14 10 13 13 51 13 23 Brazil 23 22 28 34 32 32 37 25 24 British West Indies 1,452 1,241 1,027 1,033 1,095 1,018 2,635 4,457 25 Mexico 99 102 121 151 185 215 245 237 26 Venezuela 81 98 114 124 117 124 121 124 27 Asia 723 976 1,039 1,255' 1,327' 1,268' 1,355' 1,449 28 Japan 644 792 715 879' 896' 835' 947' 1,000 29 Middle East oil-exporting countries2.. 38 75 169 205 201 170 170 180 30 Africa 11 14 17 17 19 19 19 16 31 Oil-exporting countries3 1 0 0 0 0 0 0 0 32 All other4 15 24 12 9 15 10 9 9 Commercial liabilities 4,402 3,770 3,831' 3,443' 3,633' 3,245' 3,567 3,397 33 Europe 90 71 52 41 47 62 40 45 34 Belgium-Luxembourg 582 573 598 594' 523 437 488 524 35 France 679 545 468 439 472' 427 417 501 36 Germany 219 220 346 342 243 268 259 265 37 Netherlands 499 424 367' 385' 46C 241 477 246 38 Switzerland 1,209 880 1,027' 678' 967' 732' 847 794 39 United Kingdom 40 Canada 888 897 1,495 1,468 1,418 1,841 1,776 1,840 41 Latin America and Caribbean 1,300 1,044 1,570' 1,376' 1,508' 1,445' 1,778 1,676 42 Bahamas 8 2 16 1 1 1 14 17 43 Bermuda 75 67 117' 77 77 67 158 123 44 Brazil 111 67 60 49 48 44 68 31 45 British West Indies 35 2 32 22 14 6 33 5 46 Mexico 367 340 436' 456' 512' 585' 682 568 47 Venezuela 319 276 642' 531' 539' 404' 531 602 48 Asia 10,242 9,384 8,144' 5,254' 7,638' 6,741' 6,620 6,988 49 Japan 802 1,094 1,226 1,246 1,305 1,247 1,291 1,235 50 Middle East oil-exporting countries2-5. 8,098 7,008 5,503' 2,74C 4,817' 4,178' 3,735 4,190 51 Africa 817 703 753' 525' 628' 553' 539 683 52 Oil-exporting countries3 517 344 277 192' 231' 167' 243 217 53 All other4 456 664 651 518 600 692 743 769 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

A62 International Statistics • March 1985 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1983 1984 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998800 11998811 11998822 June Sept. Dec. Mar. June 1 Total 34,482 36,185 28,725r 33,527' 32,934' 34,547' 32,ny 31,309 2 Payable in dollars 31,528 32,582 26,085' 30,86c 30,029' 31,458' 29,885' 28,345 3 Payable in foreign currencies 2,955 3,603 2,640r 2,667' 2,905' 3,089' 2,888 2,965 By type 4 Financial claims 19,763 21,142 17,684' 22,864' 22,038' 23,416' 21,911' 20,874 5 Deposits 14,166 15,081 13,058 17,819 16,907 18,020' 16,665' 15,759 6 Payable in dollars 13,381 14,456 12,628 17,379 16,463 17,523' 16,236' 15,250 7 Payable in foreign currencies 785 625 430 439 445 497 428 510 8 Other financial claims 5,597 6,061 4,626' 5,046' 5,13C 5,396' 5,246' 5,114 9 Payable in dollars 3,914 3,599 2,979' 3,437' 3,279' 3,441' 3,457' 3,358 10 Payable in foreign currencies 1,683 2,462 1,647' 1,608' 1,851' 1,955' 1,788' 1,756 11 Commercial claims 14,720 15,043 11,041' 10,663' 10,896' 11,131' 10,862 10,436 12 Trade receivables 13,960 14,007 9,994' 9,261' 9,562' 9,721' 9,540 9,105 13 Advance payments and other claims 759 1,036 1,047 1,402 1,334 1,410 1,321 1,330 14 Payable in dollars 14,233 14,527 10,478' 10,044' 10,287' 10,494' 10,191 9,736 15 Payable in foreign currencies 487 516 563 620 609 637 671 699 By area or country Financial claims 16 Europe 6,069 4,596 4,873 7,304 6,232 6,440' 6,179' 6,259 17 Belgium-Luxembourg 145 43 15 12 25 37 30 37 18 France 298 285 134 140 135 154' 175' 151 19 Germany 230 224 178 216 161' 159' 148' 161 20 Netherlands 51 50 97 136 89 71' 57 158 21 Switzerland 54 117 107 37 34 38 90 61 22 United Kingdom 4,987 3,546 4,064 6,514 5,577 5,768 5,470' 5,438 23 Canada 5,036 6,755 4,377' 5,107' 5,244' 6,111' 5,610' 5,098 24 Latin America and Caribbean 7,811 8,812 7,546 9,380 9,500 9,809 9,079' 8,238 25 Bahamas 3,477 3,650 3,279 4,037 3,829 4,745 3,787' 3,122 26 Bermuda 135 18 32 92 62 96 3 5 27 Brazil 96 30 62 48 49 53 87 83 28 British West Indies 2,755 3,971 3,255 4,065 4,457 3,830 4,302 4,210 29 Mexico 208 313 274 348 315 291 279 230 30 Venezuela 137 148 139 152 137 134 130 124 31 607 758 698 771 764 764 753' 963 32 Japan 189 366 153 288 257 297 309' 307 33 Middle East oil-exporting countries2 20 37 15 14 8 4 7 8 34 Africa 208 173 158 154 151 147 144 158 35 Oil-exporting countries3 26 46 48 48 45 55 42 35 36 All other4 32 48 31 149 148 145 145' 158 Commercial claims 37 Europe 5,544 5,405 3,826' 3,465' 3,394' 3,670' 3,608 3,542 38 Belgium-Luxembourg 233 234 151 138' llfr- 135' 173 142 39 France 1,129 776 474 497 486 459 413 407 40 Germany 599 561 357 366 382 348 363 440 41 Netherlands 318 299 350 243 282 334' 308 299 42 Switzerland 354 431 360 331 292 317 336 250 43 United Kingdom 929 985 811 734 738 809 787 812 44 Canada 914 967 633 711 792 829 1,061 933 45 Latin America and Caribbean 3,766 3,479 2,526 2,728 2,870 22,,669955 22,,441199 2,042 46 Bahamas 21 12 21 30 15 88 88 4 47 Bermuda 108 223 261 111 246 190 216 89 48 Brazil 861 668 258 512 611 493 357 310 49 British West Indies 34 12 12 21 12 7 7 8 50 Mexico 1,102 1,022 775 957 898 884 745 577 51 Venezuela 410 424 351 273 282 272 268 241 52 Asia 3,522 3,959 3,050 2,861' 2,934' 3,063' 2,997 3,085 53 Japan 1,052 1,245 1,047 944' 1,033' 1,114' 1,186 1,178 54 Middle East oil-exporting countries2 825 905 751 698 719 737 701 710 55 Africa 653 772 588 528 562 588' 497 536 56 Oil-exporting countries3 153 152 140 130 131 139 132 128 57 All other4 321 461 417 369' 344' 286' 280 297 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

Securities Holdings and Transactions A63 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1984 1984 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998822 11998833 Jan.- May June July Aug. Sept. Oct. Nov.P Nov. U.S. corporate securities STOCKS 1 Foreign purchases 41,881 69,770 56,033 5,048 4,552 3,359 7,255 4,052' 4,655 4,830 2 Foreign sales 37,981 64,360 58,304 5,494 4,899 3,915 7,399 4,892' 5,395 4,753 3 Net purchases, or sales (—) 3,901 5,410 -2,271 -446 -347 -556 -144 -840' -739 76 4 Foreign countries 3,816 5,312 -2,487 -454 -357 -565 -290 -909' -750 65 5 Europe 2,530 3,979 -2,563 -281 -317 -606 -410 -690' -527 -105 6 France -143 -97 -261 100 -3 -45 -28 -67 -37 -46 7 Germany 333 1,045 54 -40 2 -38 -125 -63 -10 11 8 Netherlands -63 -109 -286 -47 -76 -34 -19 -66 -47 -15 9 Switzerland -579 1,325 -1,241 -220 -120 -321 -358 -335 -129 -34 10 United Kingdom 3,117 1,799 -775 -80 -179 -141 146 -131' -249 2 11 Canada 222 1,151 1,539 -61 158 188 129 149 150 47 12 Latin America and Caribbean 317 529 426 82 38 -58 213 9 -89 30 13 Middle Easti 366 -807 -1,802 -168 -215 -55 -214 -207 -270 -12 14 Other Asia 247 394 -253 -28 -27 -49 -57 -160 -92 74 15 Africa 2 42 -17 -4 3 -2 -5 -6 -8 -8 16 Other countries 131 24 182 6 2 16 54 -3 87 39 17 Nonmonetary international and regional organizations 85 98 216 8 1100 9 147 6699 1111 1111 BONDS2 18 Foreign purchases 21,639 24,049 32,803 1,619 2,004 3,082 2,885 3,356 6,994 4,906 19 Foreign sales 20,188 23,099 23,109 1,442 1,795 2,503 2,030 2,035 3,060 2,536 20 Net purchases, or sales (-) 1,451 950 9,694 178 208 579 855 1,321 3,934 2,370 21 Foreign countries 1,479 935 9,382 212 168 539 902 1,278 3,954 2,167 22 Europe 2,082 961 8,348 85 272 480 502 1,004 3,956 1,943 23 France 305 -89 183 0 4 33 17 8 143 -11 24 Germany 2,110 347 1,546 107 122 256 181 19 606 139 25 Netherlands 33 51 78 -1 11 3 16 2 22 -1 26 Switzerland 157 632 368 8 35 13 49 9 253 159 27 United Kingdom -589 434 5,638 -59 77 -80 311 922 2,860 1,592 28 Canada 24 123 -85 3 32 -35 54 3 -3 13 29 Latin America and Caribbean 159 100 311 13 15 14 76 64 41 44 30 Middle Easti -752 -1,166 -787 11 -287 -60 1 -19 -232 -1 31 Other Asia -22 865 1,586 100 135 138 265 223 192 169 32 Africa -19 0 0 0 0 0 1 1 0 -2 33 Other countries 7 52 9 0 0 1 3 3 0 2 34 Nonmonetary international and regional organizations -28 15 312 -34 40 41 -48 43 -20 203 Foreign securities 35 Stocks, net purchases, or sales (-) -1,341 -3,765 -823 70 -40 113 -501 -340' -318 -167 36 Foreign purchases 7,163 13,281 13,342 1,163 1,110 895 1,246 921' 1,333 1,156 37 Foreign sales 8,504 17,046 14,165 1,092 1,150 782 1,747 1,261' 1,651 1,324 38 Bonds, net purchases, or sales (-) -6,631 -3,131 -2,573 -646 241 184 -293 -481' -1,187 -232 39 Foreign purchases 27,167 36,441 52,026 5,158 5,308 4,427 5,770 4,122' 4,529 6,573 40 Foreign sales 33,798 39,572 54,599 5,804 5,066 4,243 6,062 4,604 5,717 6,805 41 Net purchases, or sales (—), of stocks and bonds .... -7,972 -6,896 —3,396 -575 201 297 -794 -821' -1,505 -399 42 Foreign countries -6,806 -6,451 -3,710 -650 187 235 -631 -884' -1,470 -552 43 Europe -2,584 -5,423 -7,563 -1,527 -471 -462 -623 -962' -1,574 -698 44 Canada -2,363 -1,312 159 37 122 174 -7 -198' -68 -22 45 Latin America and Caribbean 336 1,120 2,369 602 465 237 127 28' 217 206 46 Asia -1,822 -855 1,471 243 80 333 -134 169' -30 88 47 Africa -9 141 -110 -16 -4 -21 11 -14 -19 -16 48 Other countries -364 -122 -36 12 -6 -25 -4 92 6 -110 49 Nonmonetary international and regional organizations -1,165 -445 315 74 15 62 -163 64' -36 153 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, ties sold abroad by U.S. corporations organized to finance direct investments Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). abroad. 2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • March 1985 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1984 1984 11998822 11998833 Country or area N Ja o n v . . - May June July Aug. Sept. Oct. NOV.p Holdings (end of period)1 1 Estimated total2 85,220 88,932 93,421 93,307 94,912 101,507 97,708' 100,639 103,552 2 Foreign countries2 80,637 83,818 85,810 86,782 87,960 93,536 91,799 92,891 95,873 3 Europe2 29,284 35,509 38,386 39,295 40,389 44,379 43,661 44,456 45,226 4 Belgium- Luxembourg 447 16 61 135 138 171 191 218 259 5 Germany2 14,841 17,290 19,649 19,735 19,627 20,663 19,915 19,876 19,913 6 Netherlands 2,754 3,129 2,979 3,014 3,120 3,133 3,127 3,585 3,578 7 Sweden 677 847 954 940 957 905 981 980 981 8 Switzerland2 1,540 1,118 1,403 1,752 2,021 2,089 2,188 2,015 1,728 9 United Kingdom 6,549 8,515 8,656 9,200 9,443 12,301 11,988 12,729 12,978 10 Other Western Europe 2,476 4,594 4,691 4,525 5,084 5,119 5,272 5,053 5,790 11 Eastern Europe 12 Canada 602 1,301 1,493 1,600 1,631 1,862 2,149 2,386 2,578 13 Latin America and Caribbean 1,076 863 111 677 134 447 611 931 1,895 14 Venezuela 188 64 65 75 75 76 79 80 88 15 Other Latin America and Caribbean 656 716 546 489 591 822 914 975 1,030 16 Netherlands Antilles 232 83 166 112 -532 -452 -382 -124 777 17 Asia 49,543 46,026 44,989 45,046 45,610 46,610 45,135 44,833 45,517 18 Japan 11,578 13,911 14,875 15,365 15,750 16,279 16,262' 17,113 18,687 19 Africa 77 79 88 88 88 -11 15 15 391 20 All other 55 38 77 77 108 250 227 271 266 21 Nonmonetary international and regional organizations 4,583 5,114 7,611 6,525 6,952 7,971 5,909' 7,748 7,679 22 International 4,186 4,404 6,946 5,860 6,241 7,340 5,191 6,843 6,682 23 Latin American regional 6 6 6 6 6 6 6 6 6 Transactions (net purchases, or sales (-) during period) 24 Total2 14,972 3,711 14,240 1,407 -114 1,599 6,596 -3,799' 2,931 2,533 25 Foreign countries2 16,072 3,180 11,675 382 972 1,172 5,576 -1,736 1,092 2,601 26 Official institutions 14,550 779 -1,370 -358 -871 177 1,366 -1,968' -823 -555 27 Other foreign2 1,518 2,400 13,045 740 1,843 994 4,210 232' 1,915 3,155 28 Nonmonetary international and regional organizations -1,097 535 2,565 1,026 -1,086 428 1,020 -2,063' 1,839 -68 MEMO: Oil-exporting countries 29 Middle East3 7,575 -5,419 -6,067 -1,037 67 -312 -411 -144 -983 -1,278 30 Africa4 -552 -1 -101 0 0 0 -100 0 0 0 1. Estimated official and private holdings of marketable U.S. Treasury securi- 2. Beginning December 1978, includes U.S. Treasury notes publicly issued to ties with an original maturity of more than 1 year. Data are based on a benchmark private foreign residents denominated in foreign currencies. survey of holdings as of Jan. 31, 1971, and monthly transactions reports . Excludes 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and nonmarketable U.S. Treasury bonds and notes held by official institutions of United Arab Emirates (Trucial States). foreign countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A65 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Dec. 31, 1984 Rate on Dec. 31, 1984 Rate on Dec. 31, 1984 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 4.5 June 1984 10.75 Nov. 1984 Norway 8.0 June 1979 Belgium. 11.0 Feb. 1984 Germany, Fed. Rep. of ... 4.5 June 1984 Switzerland 4.0 Mar. 1983 Brazil... 49.0 Mar. 1981 Italy 16.5 Sept. 1984 United Kingdom2. Canada.. 10.09 Dec. 1984 5.0 Oct. 1983 Venezuela May 1983 Denmark 7.0 Oct. 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 NOTE. Rates shown are mainly those at which the central bank either discounts central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1984 CCoouunnttrryy,, oorr ttyyppee 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. Dec. 1 Eurodollars 12.24 9.57 10.75 11.68 12.02 11.81 11.67 10.77 9.50 8.90 2 United Kingdom 12.21 10.06 9.91 9.43 11.38 11.09 10.79 10.60 9.87 9.74 3 Canada 14.38 9.48 11.29 11.86 13.03 12.41 12.20 11.99 11.09 10.41 4 Germany 8.81 5.73 5.96 6.11 6.09 6.00 5.81 6.06 5.92 5.81 5 Switzerland 5.04 4.11 4.35 4.15 4.72 4.81 5.04 5.23 5.03 4.96 6 Netherlands 8.26 5.58 6.08 6.09 6.39 6.26 6.23 6.16 5.87 5.77 7 France 14.61 12.44 11.66 12.23 11.70 11.37 11.00 10.75 10.54 10.66 8 Italy 19.99 18.95 17.08 16.75 16.73 16.50 17.28 17.13 17.13 16.86 9 Belgium 14.10 10.51 11.41 11.90 11.90 11.73 11.16 11.00 10.81 10.75 10 Japan 6.84 6.49 6.32 6.35 6.31 6.35 6.33 6.31 6.32 6.33 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • March 1985 3.28 FOREIGN EXCHANGE RATES Currency units per dollar 1984 CCoouunnttrryy//ccuurrrreennccyy 11998822 11998833 11998844 July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar1 101.65 90.14 87.937 83.42 84.73 83.08 83.64 85.88 84.00 2 Austria/schilling 17.060 17.968 20.005 19.998 20.268 21.293 21.557 21.075 21.802 3 Belgium/franc 45.780 51.121 57.749 57.714 58.282 61.132 62.048 60.475 62.380 4 Brazil/cruzeiro 179.22 573.27 1841.50 1,819.00 1994.30 2226.79 2453.64 2734.16 3008.55 5 Canada/dollar 1.2344 1.2325 1.2953 1.3238 1.3035 1.3145 1.3189 1.3168 1.3201 6 China, P.R./yuan 1.8978 1.9809 2.3308 2.2996 2.3718 2.5469 2.6488 2.6785 2.7953 7 Denmark/krone 8.3443 9.1483 10.354 10.4178 10.5174 10.9753 11.090 10.824 11.126 8 Finland/markka 4.8086 5.5636 6.0007 6.0187 6.0626 6.2783 6.3726 6.2653 6.4563 9 France/franc 6.5793 7.6203 8.7355 8.7438 8.8567 9.3041 9.4108 9.1981 9.5083 10 Germany/deutsche mark 2.428 2.5539 2.8454 2.8492 2.8856 3.0314 3.0678 2.9985 3.1044 11 Greece/drachma 66.872 87.895 112.73 112.40 115.11 120.40 126.06 123.63 127.26 12 Hong Kong/dollar 6.0697 7.2569 7.8188 7.8519 7.8388 7.8430 7.8242 7.8235 7.8287 13 India/rupee 9.4846 10.1040 11.348 11.371 11.556 11.858 12.027 12.078 12.293 14 Ireland/pound1 142.05 124.81 108.64 107.63 106.84 102.28 100.85 103.41 100.37 15 Israel/shekel 24.407 55.865 n.a. 253.14 n.a. n.a. n.a. n.a. n.a. 16 Italy/lira 1354.00 1519.30 1756.10 1,751.18 1780.47 1870.79 1898.98 1863.05 1912.52 17 Japan/yen 249.06 237.55 237.45 243.07 242.26 245.46 246.75 243.63 247.96 18 Malaysia/ringgit 2.3395 2.3204 2.3448 2.3385 2.3331 2.3528 2.4076 2.4300 2.4164 19 Mexico/peso 72.990 155.01 192.31 196.63 196.98 197.71 203.33 210.79 219.56 20 Netherlands/guilder 2.6719 2.8543 3.2083 3.2155 3.2539 3.4188 3.4597 3.3817 3.5035 21 New Zealand/dollar1 75.101 66.790 57.837 55.631 49.912 48.953 48.614 49.278 48.260 22 Norway/krone 6.4567 7.3012 8.1596 8.2151 8.2991 8.6246 8.8721 8.7175 8.9805 23 Philippines/peso 8.5324 11.0940 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 Portugal/escudo 80.101 111.610 147.70 152.17 151.02 158.45 163.36 163.10 167.31 25 Singapore/dollar 2.1406 2.1136 2.1325 2.1473 2.1472 2.1635 2.1667 2.1554 2.1732 26 South Africa/rand1 92.297 89.85 69.534 66.52 63.76 60.08 56.54 55.47 52.66 27 South Korea/won 731.93 776.04 807.91 810.96 811.42 815.82 820.03 818.89 825.73 28 Spain/peseta 110.09 143.500 160.78 161.37 164.41 170.19 172.15 168.10 171.98 29 Sri Lanka/rupee 20.756 23.510 25.428 25.223 25.285 25.605 25.906 26.075 26.213 30 Sweden/krona 6.2838 7.6717 8.2706 8.3063 8.3489 8.5892 8.6887 8.5957 8.8614 31 Switzerland/franc 2.0327 2.1006 2.3500 2.4115 2.4150 2.5049 2.5245 2.4700 2.5602 32 Taiwan/dollar n.a. n.a. 39.633 39.477 39.092 39.159 39.226 39.419 39.509 33 Thailand/baht 23.014 22.991 23.582 23.020 23.018 23.013 23.020 26.736 27.091 34 United Kingdom/pound1 174.80 151.59 133.66 132.00 131.32 125.63 121.96 123.92 118.61 35 Venezuela/bolivar 4.2981 10.6840 n.a. 13.067 12.725 n.a. n.a. n.a. n.a. MEMO United States/dollar2 116.57 125.34 138.19 139.30 140.21 145.70 147.56 144.92 149.24 1. Value in U.S. cents. NOTE. Averages of certified noon buying rates in New York for cable transfers. 2. Index of weighted-average exchange value of U.S. dollar against currencies Data in this table also appear in the Board's G.5 (405) release. For address, see of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76 inside front cover. global trade of each of the 10 countries. Series revised as of August 1978. For description and back data, see "Index of the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on p. 700 of the August 1978 BULLETIN. 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 SMSAs Standard metropolitan statistical areas when 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 1984 A77 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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 commercial banks, September 30, 1983 March 1984 A68 Assets and liabilities of commercial banks, December 31, 1983 June 1984 A66 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1983 December 1983 A74 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1983 March 1984 A74 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1983 June 1984 A72 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1984 November 1984 A4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 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 ANTHONY F. COLE, Special Assistant to the Board STANLEY J. SIGEL, Assistant to the Board ANNETTE P. FRIBOURG, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director MICHAEL BRADFIELD, General Counsel EDWARD C. ETTIN, Deputy Director J. VIRGIL MATTINGLY, JR., Associate General Counsel MICHAEL J. PRELL, Deputy Director RICHARD M. ASHTON, Assistant General Counsel JOSEPH S. ZEISEL, Deputy Director MARYELLEN A. BROWN, Assistant to the General Counsel JARED J. ENZLER, Associate Director ELEANOR J. STOCKWELL, Associate Director DAVID E. LINDSEY, Deputy Associate Director OFFICE OF THE SECRETARY HELMUT F. WENDEL, Deputy Associate Director MARTHA BETHEA, Assistant Director WILLIAM W. WILES, Secretary ROBERT M. FISHER, Assistant Director BARBARA R. LOWREY, Associate Secretary SUSAN J. LEPPER, Assistant Director JAMES MCAFEE, Associate Secretary THOMAS D. SIMPSON, Assistant Director LAWRENCE SLIFMAN, Assistant Director STEPHEN P. TAYLOR, Assistant Director DIVISION OF CONSUMER PETER A. TINSLEY, Assistant Director AND COMMUNITY AFFAIRS LEVON H. GARABEDIAN, Assistant Director (Administration) GRIFFITH L. GARWOOD, Director JERAULD C. KLUCKMAN, Associate Director GLENN E. LONEY, Assistant Director DIVISION OF INTERNATIONAL FINANCE DOLORES S. SMITH, Assistant Director EDWIN M. TRUMAN, Director LARRY J. PROMISEL, Senior Associate Director DIVISION OF BANKING CHARLES J. SIEGMAN, Senior Associate Director SUPERVISION AND REGULATION DALE W. HENDERSON, Associate Director ROBERT F. GEMMILL, Staff Adviser PETER HOOPER, III, Assistant Director WILLIAM TAYLOR, Director FREDERICK R. DAHL, Associate Director DAVID H. HOWARD, Assistant Director DON E. KLINE, Associate Director RALPH W. SMITH, JR., Assistant Director FREDERICK M. STRUBLE, Associate Director HERBERT A. BIERN, Assistant Director ANTHONY G. CORNYN, Assistant Director ROBERT S. PLOTKIN, Assistant Director STEPHEN C. SCHEMERING, Assistant Director RICHARD SPILLENKOTHEN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 and Official Staff EMMETT J. RICE MARTHA R. SEGER LYLE E. GRAMLEY OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES S. DAVID FROST, Staff Director THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director JOSEPH W. DANIELS, SR., Advisor, Equal Employment WILLIAM R. JONES, Assistant Staff Director for Program Opportunity Programs, Federal Reserve System Improvement Project STEPHEN R. MALPHRUS, Assistant Staff Director for Office Automation and Technology DIVISION OF FEDERAL RESERVE PORTIA W. THOMPSON, Equal Employment Opportunity BANK OPERATIONS Programs Officer CLYDE H. FARNSWORTH, JR., Director ELLIOTT C. MCENTEE, Associate Director DIVISION OF DATA PROCESSING DAVID L. ROBINSON, Associate Director C. WILLIAM SCHLEICHER, JR., Associate Director CHARLES L. HAMPTON, Director WALTER ALTHAUSEN, Assistant Director BRUCE M. BEARDSLEY, Deputy Director CHARLES W. BENNETT, Assistant Director GLENN L. CUMMINS, Assistant Director ANNE M. DEBEER, Assistant Director RICHARD J. MANASSERI, Assistant Director JACK DENNIS, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director EARL G. HAMILTON, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director * WILLIAM E. PASCOE, III, Assistant Director ROBERT J. ZEMEL, Assistant Director DIVISION OF PERSONNEL DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller BRENT L. BOWEN, Assistant Controller DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director WALTER W. KREIMANN, Associate Director GEORGE M. LOPEZ, Assistant Director *On loan from the Federal Reserve Bank of Richmond (Baltimore Branch). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Bulletin • March 1985 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman EDWARD G. BOEHNE LYLE E. GRAMLEY J. CHARLES PARTEE ROBERT H. BOYKIN KAREN N. HORN EMMETT J. RICE E. GERALD CORRIGAN PRESTON MARTIN MARTHA R. SEGER HENRY C. WALLICH STEPHEN H. AXILROD, Staff Director and Secretary RICHARD G. DAVIS, Associate Economist NORMAND R.V. BERNARD, Assistant Secretary DONALD L. KOHN, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary RICHARD W. LANG, Associate Economist MICHAEL BRADFIELD, General Counsel DAVID E. LINDSEY, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL J. PRELL, Associate Economist JAMES L. KICHLINE, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist (International) GARY H. STERN, Associate Economist JOSEPH E. BURNS, Associate Economist JOSEPH S. ZEISEL, Associate Economist JOHN M. DAVIS, 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 ROBERT L. NEWELL, First District BARRY F. SULLIVAN, Seventh District LEWIS T. PRESTON, Second District WILLIAM H. BOWEN, Eighth District GEORGE A. BUTLER, Third District E. PETER GILLETTE, JR., Ninth District JULIEN L. MCCALL, Fourth District N. BERNE HART, Tenth District JOHN G. MEDLIN, JR., Fifth District NAT S. ROGERS, Eleventh District PHILIP F. SEARLE, Sixth District G. ROBERT TRUEX, JR., Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 and Advisory Councils CONSUMER ADVISORY COUNCIL TIMOTHY D. MARRINAN, Minneapolis, Minnesota, Chairman THOMAS L. CLARK, JR., New York, New York, Vice Chairman RACHEL G. BRATT, Medford, Massachusetts LAWRENCE S. OKINAGA, Honolulu, Hawaii JONATHAN BROWN, Washington, D.C. JOSEPH L. PERKOWSKI, Centerville, Minnesota JEAN A. CROCKETT, Philadelphia, Pennsylvania ELVA QUIJANO, San Antonio, Texas THERESA FAITH CUMMINGS, Springfield, Illinois BRENDA L. SCHNEIDER, Detroit, Michigan STEVEN M. GEARY, Jefferson City, Missouri PAULA A. SLIMAK, Cleveland, Ohio RICHARD M. HALLIBURTON, Kansas City, Missouri GLENDA G. SLOANE, Washington, D.C. CHARLES C. HOLT, Austin, Texas HENRY J. SOMMER, Philadelphia, Pennsylvania EDWARD N. LANGE, Seattle, Washington TED L. SPURLOCK, New York, New York KENNETH V. LARKIN, Berkeley, California MEL STILLER, Boston, Massachusetts FRED S. MCCHESNEY, Atlanta, Georgia CHRISTOPHER J. SUMNER, Salt Lake City, Utah FREDERICK H. MILLER, Norman, Oklahoma WINNIE F. TAYLOR, San Francisco, California MARGARET M. MURPHY, Columbia, Maryland MICHAEL M. VAN BUSKIRK, Columbus, Ohio ROBERT F. MURPHY, Detroit, Michigan MERVIN WINSTON, Minneapolis, Minnesota HELEN NELSON, Mill Valley, California MICHAEL ZOROYA, St. Louis, Missouri THRIFT INSTITUTIONS ADVISORY COUNCIL THOMAS R. BOMAR, Miami, Florida, President RICHARD H. DEIHL, Los Angeles, California, Vice President ELLIOTT G. CARR, Harwich Port, Massachusetts JOHN A. HARDIN, Rock Hill, South Carolina M. TODD COOKE, Philadelphia, Pennsylvania FRANCES LESNIESKI, East Lansing, Michigan J. MICHAEL CORNWALL, Dallas, Texas JOHN T. MORGAN, New York, New York HAROLD W. GREENWOOD, JR., Minneapolis, Minnesota SARAH R. WALLACE, Newark, Ohio MICHAEL R. WISE, Denver, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, THE FEDERAL RESERVE ACT, as amended through April 20, Mail Stop 138, Board of Governors of the Federal Reserve 1983, with an appendix containing provisions of certain System, Washington, D.C. 20551. When a charge is indicat- other statutes affecting the Federal Reserve System. 576 ed, remittance should accompany request and be made pp. $7.00. payable to the order of the Board of Governors of the Federal REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- Reserve System. Remittance from foreign residents should ERAL RESERVE SYSTEM. be drawn on a U.S. bank. Stamps and coupons are not JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOVaccepted. ERNMENT SECURITIES MARKET; STAFF STUDIES—PART 1, 1970. 86 pp. $.50 each; 10 or more to one address, $.40 each. PART 2, 1971. Out of print. PART 3, 1973. 131 pp. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- $1.00; 10 or more to one address, $.85 each. TIONS. 1984. 132 pp. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- ANNUAL REPORT. NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Each FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or volume, $3.00; 10 or more to one address, $2.50 each. $2.00 each in the United States, its possessions, Canada, THE ECONOMETRICS OF PRICE DETERMINATION CONFERand Mexico; 10 or more of same issue to one address, ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 $18.00 per year or $1.75 each. Elsewhere, $24.00 per pp. Cloth ed. $5.00 each; 10 or more to one address, year or $2.50 each. $4.50 each. Paper ed. $4.00 each; 10 or more to one BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint address, $3.60 each. of Part I only) 1976. 682 pp. $5.00. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE BANKING AND MONETARY STATISTICS. 1941-1970. 1976. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1,168 pp. $15.00. pp. $4.00 each; 10 or more to one address, $3.60 each. ANNUAL STATISTICAL DIGEST ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— 1974-78. 1980. 305 pp. $10.00 per copy. Regulation Z) Vol. I (Regular Transactions). 1969. 100 1980. 1981. 241 pp. $10.00 per copy. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each 1981. 1982. 239 pp. $ 6.50 per copy. volume $2.25; 10 or more of same volume to one 1982. 1983. 266 pp. $ 7.50 per copy. address, $2.00 each. 1983. 1984. 264 pp. $11.50 per copy. FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY FEDERAL RESERVE CHART BOOK. Issued four times a year in UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one February, May, August, and November. Subscription address, $1.50 each. includes one issue of Historical Chart Book. $7.00 per THE BANK HOLDING COMPANY MOVEMENT TO 1978: A year or $2.00 each in the United States, its possessions, COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to Canada, and Mexico. Elsewhere, $10.00 per year or one address, $2.25 each. $3.00 each. FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- each; 10 or more to one address, $1.50 each. tion to the Federal Reserve Chart Book includes one INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; issue. $1.25 each in the United States, its possessions, 10 or more to one address, $1.25 each. Canada, and Mexico; 10 or more to one address, $1.00 PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. each. Elsewhere, $1.50 each. $13.50 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in SERVE STAFF STUDY. 1981. the United States, its possessions, Canada, and Mexico; SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: 10 or more of same issue to one address, $13.50 per year REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL or $.35 each. Elsewhere, $20.00 per year or $.50 each. ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- Series on the Structure of the Federal Reserve System ed at least monthly. (Requests must be prepaid.) The Board of Governors of the Federal Reserve System Consumer and Community Affairs Handbook. $60.00 per The Federal Open Market Committee year. Federal Reserve Bank Board of Directors Monetary Policy and Reserve Requirements Handbook. Federal Reserve Banks $60.00 per year. Monetary Control Act of 1980 Securities Credit Transactions Handbook. $60.00 per year. Organization and Advisory Committees Federal Reserve Regulatory Service. 3 vols. (Contains all Truth in Leasing three Handbooks plus substantial additional material.) U.S. Currency $175.00 per year. What Truth in Lending Means to You Rates for subscribers outside the United States are as follows and include additional air mail costs: Federal Reserve Regulatory Service, $225.00 per year. Each Handbook, $75.00 per year. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. STAFF STUDIES: Summaries Only Printed in the Bulletin WELCOME TO THE FEDERAL RESERVE. PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- Studies and papers on economic and financial subjects that CATIONS. are of general interest. Requests to obtain single copies of CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON the full text or to be added to the mailing list for the series COSTS, PRICES, AND RETAIL SALES, July 1983. 114 pp. may be sent to Publications Services. THE MONETARY AUTHORITY OF THE FEDERAL RESERVE, May 1984. (High School Level.) WRITING IN STYLE AT THE FEDERAL RESERVE. August 1984. Staff Studies 115-125 are out of print. 93 pp. $2.50 each. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- DENCE ON COMPETITION AND PERFORMANCE IN CONSUMER EDUCATION PAMPHLETS BANKING MARKETS, by Timothy J. Curry and John T. Short pamphlets suitable for classroom use. Multiple copies Rose. Jan. 1982. 9 pp. available without charge. 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- KET INTERVENTION, by Donald B. Adams and Dale W. Henderson. August 1983. 5 pp. Alice in Debitland 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Consumer Handbook to Credit Protection Laws VENTION: JANUARY-MARCH 1975, by Margaret L. Consumer Handbook on Adjustable Rate Mortgages Greene. August 1984. 16 pp. The Equal Credit Opportunity Act and . . . Age 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- The Equal Credit Opportunity Act and . . . Credit Rights in VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- Housing garet L. Greene. October 1984. 40 pp. The Equal Credit Opportunity Act and . . . Doctors, Law- 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTERyers, Small Retailers, and Others Who May Provide Inci- VENTION: OCTOBER 1980-OcTOBER 1981, by Margaret dental Credit L. Greene. August 1984. 36 pp. The Equal Credit Opportunity Act and . . . Women 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- Fair Credit Billing TERNATIONAL TRADE AND OTHER ECONOMIC VARIA- Federal Reserve Glossary BLES: A REVIEW OF THE LITERATURE, by Victoria S. Guide to Federal Reserve Regulations Farrell with Dean A. DeRosa and T. Ashby McCown. How to File A Consumer Credit Complaint January 1984. 21 pp. If You Borrow To Buy Stock 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- If You Use A Credit Card DEUTSCHE MARK INTERVENTION, by Laurence R. Instructional Materials of the Federal Reserve System Jacobson. October 1983. 8 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN TWEEN EXCHANGE RATES AND INTERVENTION: A THE UNITED STATES, by Thomas D. Simpson and REVIEW OF THE TECHNIQUES AND LITERATURE, by Patrick M. Parkinson. August 1984. 20 pp. Kenneth Rogoff. October 1983. 15 pp. 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- THE LITERATURE, by John D. Wolken. November VENTION, AND INTEREST RATES: AN EMPIRICAL IN- 1984. 38 pp. VESTIGATION, by Bonnie E. Loopesko. November 141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAY- 1983. 20 pp. MENT COSTS, by William Dudley. November 1984. 15 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET pp. INTERVENTION: A REVIEW OF THE LITERATURE, by 142. MERGERS AND ACQUISITIONS BY COMMERCIAL Ralph W. Tryon. October 1983. 14 pp. BANKS, 1960-83, by Stephen A. Rhoades. December *135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET 1984. 30 pp. INTERVENTION: APPLICATIONS TO CANADA, GERMA- NY, AND JAPAN, by Deborah J. Danker, Richard A. Haas, Dale W. Henderson, Steven A. Symansky, and Ralph W. Tryon. REPRINTS OF BULLETIN ARTICLES 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO- Most of the articles reprinted do not exceed 12 pages. MY, by Darrell Cohen and Peter B. Clark. January 1984. 16 pp. 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF The Commercial Paper Market since the Mid-Seventies. 6/82. FINANCIAL DEREGULATION, INTERSTATE BANKING, Applying the Theory of Probable Future Competition. 9/82. AND FINANCIAL SUPERMARKETS, by Stephen A. International Banking Facilities. 10/82. Rhoades. February 1984. 8 pp. Foreign Experience with Targets for Money Growth. 10/83. 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- Intervention in Foreign Exchange Markets: A Summary of LINES, AND THE LIMITS OF CONCENTRATION IN LO- Ten Staff Studies. 11/83. CAL BANKING MARKETS, by James Burke. June 1984. A Financial Perspective on Agriculture. 1/84. 14 pp. U.S. International Transactions in 1983. 4/84. Survey of Consumer Finances, 1983. 9/84. Bank Lending to Developing Countries. 10/84. *The availability of this study will be announced in a forth- Survey of Consumer Finances, 1983: A Second Report. coming BULLETIN. 12/84. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 Index to Statistical Tables References are to pages A3 through A66 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 18-20 Turnover, 15 Domestic finance companies, 36 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 7 Financial institutions, 26 Reserves and related items, 3, 4, 5, 12 Foreign banks, U.S. branches and agencies, 21 Deposits (See also specific types) Nonfinancial corporations, 35 Banks, by classes, 3, 18-20, 21 Automobiles Federal Reserve Banks, 4, 10 Consumer installment credit, 39, 40 Turnover, 15 Production, 45, 46 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) BANKERS acceptances, 9, 23, 24 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 18-20 (See also Foreigners) Dividends, corporate, 35 Bonds (See also U.S. government securities) New issues, 34 EMPLOYMENT, 43 Rates, 24 Eurodollars, 24 Branch banks, 21, 53 Business activity, nonfinancial, 43 Business expenditures on new plant and equipment, 36 FARM mortgage loans, 38 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 9, 10, 11, 31, 32 Federal credit agencies, 33 CAPACITY utilization, 44 Federal finance Capital accounts Debt subject to statutory limitation, and types and Banks, by classes, 18 ownership of gross debt, 30 Federal Reserve Banks, 10 Receipts and outlays, 28, 29 Central banks, discount rates, 65 Treasury financing of surplus, or deficit, 28 Certificates of deposit, 24 Treasury operating balance, 28 Commercial and industrial loans Federal Financing Bank, 28, 33 Commercial banks, 16, 19 Federal funds, 5, 17, 19, 20, 21, 24, 28 Weekly reporting banks, 19-21 Federal Home Loan Banks, 33 Commercial banks Federal Home Loan Mortgage Corporation, 33, 37, 38 Assets and liabilities, 18-20 Federal Housing Administration, 33, 37, 38 Commercial and industrial loans, 16, 19, 21 Federal Land Banks, 38 Consumer loans held, by type, and terms, 39, 40 Federal National Mortgage Association, 33, 37, 38 Loans sold outright, 19 Federal Reserve Banks Nondeposit fund, 17 Condition statement, 10 Number, by classes, 18 Discount rates (See Interest rates) Real estate mortgages held, by holder and U.S. government securities held, 4, 10, 11, 30 property, 38 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 23, 24, 36 Federally sponsored credit agencies, 33 Condition statements (See Assets and liabilities) Finance companies Construction, 43, 47 Assets and liabilities, 36 Consumer installment credit, 39, 40 Business credit, 36 Consumer prices, 43, 48 Loans, 19, 39, 40 Consumption expenditures, 49, 50 Paper, 23, 24 Corporations Financial institutions Profits and their distribution, 35 Loans to, 19, 20, 21 Security issues, 34, 63 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 Credit unions, 26, 39 (See also Thrift institutions) Flow of funds, 41, 42 Currency and coin, 18 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 21 Customer credit, stock market, 25 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4, 10, 19, 20 DEBITS to deposit accounts, 15 Foreign exchange rates, 66 Debt (See specific types of debt or securities) Foreign trade, 52 Demand deposits Foreigners Adjusted, commercial banks, 15 Claims on, 53, 55, 58, 59, 60, 62 Banks, by classes, 18-21 Liabilities to, 20, 52, 53, 55, 56, 61, 63, 64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 GOLD REAL estate loans Certificate account, 10 Banks, by classes, 16, 19, 20, 38 Stock, 4, 52 Financial institutions, 26 Government National Mortgage Association, 33, 37, 38 Terms, yields, and activity, 37 Gross national product, 49 Type of holder and property mortgaged, 38 Repurchase agreements, 5, 17, 19, 20, 21 Reserve requirements, 7 HOUSING, new and existing units, 47 Reserves Commercial banks, 18 Depository institutions, 3, 4, 5, 12 INCOME, personal and national, 43, 49, 50 Federal Reserve Banks, 10 Industrial production, 43, 45 U.S. reserve assets, 52 Installment loans, 39, 40 Residential mortgage loans, 37 Insurance companies, 26, 30, 38 Retail credit and retail sales, 39, 40, 43 Interest rates Bonds, 24 SAVING Federal Reserve Banks, 6 Flow of funds, 41, 42 Foreign central banks and foreign countries, 65 National income accounts, 49, 50 Money and capital markets, 24 Savings and loan associations, 8, 26, 38, 39, 41 (See also Mortgages, 37 Thrift institutions) Prime rate, commercial banks, 23 Savings deposits (See Time and savings deposits) Time and savings deposits, 8 Securities (See specific types) International capital transactions of United States, 51-64 Federal and federally sponsored credit agencies, 33 International organizations, 55, 56-58, 61-64 Foreign transactions, 63 Inventories, 49 New issues, 34 Investment companies, issues and assets, 35 Prices, 25 Investments (See also specific types) Special drawing rights, 4, 10, 51, 52 Banks, by classes, 18, 19, 20, 21, 26 State and local governments Commercial banks, 3, 16, 18-20, 38 Deposits, 19, 20 Federal Reserve Banks, 10, 11 Holdings of U.S. government securities, 30 Financial institutions, 26, 38 New security issues, 34 Ownership of securities issued by, 19, 20, 26 LABOR force, 43 Rates on securities, 24 Life insurance companies (See Insurance companies) Stock market, 25 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 18-20 New issues, 34 Commercial banks, 3, 16, 18-20 Prices, 25 Federal Reserve Banks, 4, 5, 6, 10, 11 Financial institutions, 26, 38 Student Loan Marketing Association, 33 Insured or guaranteed by United States, 37, 38 TAX receipts, federal, 29 MANUFACTURING Thrift institutions, 3 (See also Credit unions, Mutual Capacity utilization, 44 savings banks, and Savings and loan associations) Production, 43, 46 Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21 (See Margin requirements, 25 also Transaction and Nontransaction balances) Member banks (See also Depository institutions) Trade, foreign, 52 Federal funds and repurchase agreements, 5 Transaction balances, 13, 19, 20 Reserve requirements, 7 Treasury currency, Treasury cash, 4 Mining production, 46 Treasury deposits, 4, 10, 28 Mobile homes shipped, 47 Treasury operating balance, 28 Monetary and credit aggregates, 3,12 UNEMPLOYMENT, 43 Money and capital market rates (See Interest rates) U.S. government balances Money stock measures and components, 3, 13 Commercial bank holdings, 18, 19, 20 Mortgages (See Real estate loans) Treasury deposits at Reserve Banks, 4, 10, 28 Mutual funds (See Investment companies) U.S. government securities Mutual savings banks, 8, 26, 38, 39 (See also Thrift Bank holdings, 17, 18-20, 21, 30 institutions) Dealer transactions, positions, and financing, 32 Federal Reserve Bank holdings, 4, 10, 11, 30 Foreign and international holdings and transactions, 10, NATIONAL defense outlays, 29 30, 64 National income, 49 Open market transactions, 9 Nontransaction balances, 3, 13, 19, 20 Outstanding, by type and holder, 26, 30 Rates, 24 OPEN market transactions, 9 U.S. international transactions, 51-64 Utilities, production, 46 PERSONAL income, 50 Prices VETERANS Administration, 37, 38 Consumer and producer, 43, 48 Stock market, 25 Prime rate, commercial banks, 23 WEEKLY reporting banks, 19-21 Producer prices, 43, 48 Wholesale (producer) prices, 43, 48 Production, 43, 45 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 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 Joseph A. Baute Frank E. Morris Thomas I. Atkins Robert W. Eisenmenger NEW YORK* 10045 John Brademas E. Gerald Corrigan Clifton R. Wharton, Jr. Thomas M. Timlen Buffalo 14240 M. Jane Dickman John T. Keane PHILADELPHIA 19105 Robert M. Landis Edward G. Boehne Nevius M. Curtis Richard L. Smoot CLEVELAND* 44101 William H. Knoell Karen N. Horn E. Mandell de Windt William H. Hendricks Cincinnati 45201 Robert E. Boni Charles A. Cerino Pittsburgh 15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* 23219 Leroy T. Canoles, Jr. Robert P. Black Robert A. Georgine Jimmie R. Monhollon Baltimore 21203 Robert L. Tate Robert D. McTeer, Jr. Charlotte 28230 Wallace J. Jorgenson Albert D. Tinkelenberg Culpeper Communications John G. Stoides and Records Center 22701 ATLANTA 30301 John H. Weitnauer, Jr. Robert P. Forrestal Bradley Currey, Jr. Jack Guynn Birmingham 35283 Martha Mclnnis Fred R. Hen- Jacksonville 32231 E. William Nash, Jr. James D. Hawkins Miami 33152 Eugene E. Cohen Patrick K. Barron Nashville 37203 Condon S. Bush Jeffrey J. Wells New Orleans 70161 Leslie B. Lampton Henry H. Bourgaux CHICAGO* 60690 Stanton R. Cook Silas Keehn Robert J. Day Daniel M. Doyle Detroit 48231 Russell G. Mawby Roby L. Sloan ST. LOUIS 63166 W.L. Hadley Griffin Vacancy Mary P. Holt Joseph P. Garbarini Little Rock 72203 Sheffield Nelson John F. Breen Louisville 40232 Henry F. Frigon James E. Conrad Memphis 38101 Donald B. Weis Paul I. Black, Jr. MINNEAPOLIS 55480 William G. Phillips Vacancy John B. Davis, Jr. Thomas E. Gainor Helena 59601 Gene J. Etchart Robert F. McNellis KANSAS CITY 64198 Irvine O. Hockaday, Jr. Roger Guflfey Robert G. Lueder Henry R. Czerwinski Denver 80217 James E. Nielson Wayne W. Martin Oklahoma City 73125 Patience Latting William G. Evans Omaha 68102 Kenneth L. Morrison Robert D. Hamilton DALLAS 75222 Robert D. Rogers Robert H. Boykin Bobby R. Inman William H. Wallace El Paso 79999 John R. Sibley Joel L. Koonce, Jr. Houston 77252 Robert T. Sakowitz J.Z. Rowe San Antonio 78295 Robert F. McDermott Thomas H. Robertson SAN FRANCISCO 94120 Alan C. Furth John J. Balles Fred W. Andrew Richard T. Griffith Los Angeles 90051 Richard C. Seaver Richard C. Dunn Portland 97208 Paul E. Bragdon Angelo S. Carella Salt Lake City 84125 Don M. Wheeler 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

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

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. The Equal Credit LMMQ Opportunity Act LE4SINO and ... LE4SMG LE4SMG TRUTH IN LE4SING What TVuthln Lending Means ToYou YOU USE A CREDIT CARD 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