Federal Reserve Bulletin, 1985-12

VOLUME 71 • NUMBER 12 • DECEMBER 1985 m 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 913 REVISION OF THE BOARD'S EQUAL 937 STATEMENTS TO CONGRESS CREDIT REGULATION: AN OVERVIEW Preston Martin, Vice Chairman, Board of The Federal Reserve Board recently com- Governors, discusses the views of the pleted its first comprehensive review of Board on delayed availability—the placing Regulation B, which comprises the rules to by banks of holds ranging from several days implement the Equal Credit Opportunity to two or more weeks on funds that their Act; this article presents a synopsis of Reg- customers deposit by check—before the ulation B and a discussion of the major Subcommittee on Financial Institutions Suissues involved in the revision. pervision, Regulation and Insurance of the House Committee on Banking, Finance and 924 FINANCIAL DEVELOPMENTS OF BANK Urban Affairs, October 10, 1985. HOLDING COMPANIES IN 1984 High loan losses negatively affected earn- 941 Emanuel Melichar, Senior Economist, Diings and profitability at bank holding com- vision of Research and Statistics, reviews panies in 1984, although capital ratios con- the experience of the aggregate farm sector tinued to improve. to show how present conditions evolved and to provide insight into the diversity of 933 STAFF STUDIES financial experience among individual farmers, before the Subcommittee on Economic "Revisions in the Monetary Services (Divi- Stabilization of the House Committee on sia) Indexes of the Monetary Aggregates," Banking, Finance and Urban Affairs, Octoby Helen T. Farr and Deborah Johnson, ber 23, 1985. explains a recent revision of the Board's indexes of the monetary aggregates by cata- 944 Martha R. Seger, Member, Board of Goverloging both the data used to calculate the nors, presents the views of the Board on indexes and the changes made to those two legislative proposals that would estabdata. lish nationwide ceilings on interest rates for credit cards, before the Subcommittee on 934 "The Macroeconomic and Sectoral Effects Consumer Affairs of the House Committee of the Economic Recovery Tax Act: Some on Banking, Finance and Urban Affairs, Simulation Results," by Flint Bray ton and October 29, 1985. Peter B. Clark, uses the Federal Reserve Board's MPS quarterly econometric model of the U.S. economy to investigate the 949 RECORD OF POLICY ACTIONS OF THE longer-term consequences of the Economic FEDERAL OPEN MARKET COMMITTEE Recovery Tax Act of 1981 and the Tax At its meeting on August 20, 1985, the Equity and Fiscal Responsibility Act of Committee adopted a directive that called 1982. for maintaining the slightly firmer degree of reserve restraint that had been sought in 935 INDUSTRIAL PRODUCTION recent weeks. The members expected such Output declined an estimated 0.1 percent in an approach to policy implementation to be September. consistent with growth of M2 and M3 at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

annual rates of around 8V2 and 6V2 percent Bank holding company application. respectively for the period from June to Change in Board staff. September, not much changed from expectations at the time of the July meeting. Admission of six state banks to membership Growth in Ml was now anticipated to grow in the Federal Reserve System. at an annual rate of about 8 to 9 percent over the three-month period, considerably 957 LEGAL DEVELOPMENTS above earlier expectations. Various bank holding company and bank The members agreed that somewhat merger orders and pending cases; amendgreater restraint on reserve positions would ment to Rules Regarding Delegation of Aube acceptable if growth in the monetary thority. aggregates were substantially faster than expected, while somewhat lesser restraint AI FINANCIAL AND BUSINESS STATISTICS would be acceptable if monetary growth were substantially slower. As in the past, A3 Domestic Financial Statistics any such adjustment should not be made A44 Domestic Nonfinancial Statistics automatically in response to the behavior of \53 International Statistics the monetary aggregates alone, but should take broader economic and financial devel- A69 GUIDE TO TABULAR PRESENTATION, opments into account, including conditions STATISTICAL RELEASES, AND SPECIAL in domestic and international financial mar- TABLES kets. For the period ahead, several members believed that policy implementation A70 BOARD OF GOVERNORS AND STAFF should be especially alert to developments in the foreign exchange markets. The mem- A72 FEDERAL OPEN MARKET COMMITTEE bers agreed that the intermeeting range for AND STAFF; ADVISORY COUNCILS the federal funds rate, which provides a mechanism for initiating consultation of the A74 FEDERAL RESERVE BOARD Committee when its boundaries are persis- PUBLICATIONS tently exceeded, should be left unchanged at 6 to 10 percent. A79 INDEX TO STATISTICAL TABLES 955 ANNOUNCEMENTS A81 INDEX TO VOLUME 71 Policy on supervision of state member A97 FEDERAL RESERVE BANKS, BRANCHES, banks and bank holding companies. AND OFFICES Revised list of OTC stocks subject to margin regulations now available. A98 MAP OF FEDERAL RESERVE SYSTEM Temporary amendment to Regulation J. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of the Board's Equal Credit Regulation: An Overview Dolores S. Smith, Assistant Director of the consumers, and community groups. An initial Board's Division of Consumer and Community assessment of the information gathered from all Affairs, prepared this article. these sources yielded a proposal for specific changes, published by the Board in March 1985 The Federal Reserve Board recently completed for public comment. After consideration of the its first comprehensive review of the rules it comments received in response to that proposal, issued in 1977 to carry out the Equal Credit the Board in November 1985 issued an amended Opportunity Act, a statute that protects appli- regulation that takes effect December 16, 1985, cants for credit against discrimination on certain with a transition period ending September 30, prohibited bases. The rules, collectively called 1986. Regulation B, were reviewed under the Board's This overview of the Board's rulemaking preregulatory improvement program, which was es- sents a synopsis of Regulation B and discusses tablished in 1979 in response to President Car- the major issues that the Board addressed in ter's executive order, "Improving Government revising the regulation. It also discusses changes Regulations." The program also addresses con- that the Board considered but did not adopt and gressional concerns about regulatory burdens on identifies areas that the Board will continue to industry, as reflected in the Regulatory Flexibili- monitor. ty Act and the Financial Regulation Simplification Act of 1980. The Board's program requires it to review each of its regulations periodically to determine THE SCOPE OF THE ACT whether the regulation can be eliminated, replaced with a nonregulatory program, simplified The Equal Credit Opportunity Act (ECOA) went to ease the burdens of compliance, or made into effect in October 1975 and was expanded in easier to understand. The review of Regulation B March 1976. One of several laws concerning considered ways to reduce the burdens on indus- financial services that the Federal Reserve Board try while retaining the protections that the Con- implements through rulemaking, the EC OA is gress intended for credit applicants; it also con- part of the Consumer Credit Protection Act sidered whether the rules could carry out (CCPA). The ECO A differs from other parts of congressional intent more effectively. The re- the CCPA such as the Truth in Lending, Conview included a study of comments received sumer Leasing, Fair Credit Billing, and Electronfollowing public notice of the Board's intent to ic Fund Transfer acts. First, the ECO A is more revise the regulation; a review of court decisions in the civil rights tradition. It prohibits creditors to identify problems that could be addressed from taking into account the applicant's race, through regulation; an analysis of each section of color, religion, national origin, sex, age (with the regulation to adjust requirements as neces- some qualification), or marital status when maksary; and an assessment of the costs and benefits ing a credit decision. It bars creditors from of some of the rules, based on surveys of con- discriminating against an applicant because the sumers and industry. The Board also sought the applicant receives income from public assistviews of other agencies having responsibilities ance, such as social security benefits or welfare for enforcing the act and of its Consumer Adviso- payments. Also, creditors may not retaliate ry Council, whose members represent industry, against someone who in good faith has exercised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 Federal Reserve Bulletin • December 1985 rights under the CCPA—for example, against a Board issued to carry out this responsibility, sets customer who, under the Fair Credit Billing Act, the rules that all creditors must follow to comply asks the creditor to investigate a billing error on a with the act. A general rule makes clear that credit card account. discrimination on a prohibited basis is barred in The second way in which the ECOA differs any aspect of a credit transaction, whether or not from other parts of the CCPA is in its broader the act or practice leading to the unlawful disscope. The ECOA is not limited to consumer crimination is specified in the regulation. The credit; it applies to business and commercial regulation also sets down specific rules governtransactions as well. And because the act applies ing the credit relationship, many of which reto all aspects of a credit transaction, the ECOA spond to evidence presented to the Congress and affects not only the application stage but also the Board about specific difficulties that women credit investigations, creditworthiness stan- experienced in obtaining credit before the ECOA dards, credit terms, signature policies, credit became law. reporting, and collection procedures. The ECOA assigns to 12 federal agencies the Restrictions on Creditors' Requests for Inforresponsibility for ensuring that creditors comply mation. Some rules limit the information that a with the act, which applies not only to banks and creditor may request. For example, the creditor other financial institutions but to any person that generally may not ask a woman seeking individregularly extends credit. The Federal Reserve is ual credit whether she is married. One of the responsible for state-chartered member banks of exceptions excludes secured credit transactions the Federal Reserve System; the Office of the because state law may give the applicant's Comptroller of the Currency, for national banks; spouse special rights in the collateral. An excepthe Federal Deposit Insurance Corporation, for tion is also allowed if the applicant lives in a state-chartered nonmember banks; the Federal community property state. Even when they may Home Loan Bank Board, for federally chartered ask about marital status, creditors must use the or insured savings and loan associations; and the terms married, unmarried, or separated. They National Credit Union Administration, for feder- may not ask whether an applicant is divorced or ally chartered credit unions. The Securities and widowed. Exchange Commission, the Small Business Ad- When a married person applies for individual ministration, and several other agencies also credit, the creditor may ask about the spouse have enforcement responsibilities. The jurisdic- only if the spouse is directly involved in the tion of the Federal Trade Commission is the credit transaction. For example, the creditor widest: it encompasses retailers, finance compa- may ask for information about a husband if he nies, nonbank issuers of credit cards, and all will be authorized to use the wife's credit card other creditors not specifically assigned by the account or if the wife is relying on his income to ECOA to some other agency's supervision. help repay the debt. Again, there is an exception Besides providing for enforcement through if the applicant lives in one of the eight communiadministrative agencies, the act allows appli- ty property states: Arizona, California, Idaho, cants to bring private lawsuits. In the latter Louisiana, Nevada, New Mexico, Texas, and instance, a creditor in violation of the ECOA or Washington. Property laws in those states give a Regulation B can be assessed up to $10,000 in married person special rights in property acpunitive damages in addition to actual damages quired by the spouse in the course of the marsuffered by the applicant, court costs, and attor- riage and generally allow either spouse acting neys' fees. alone to encumber the property. Therefore, the creditor must be able to obtain information about The Board's Regulation B the spouse. The creditor must use sex-neutral terms on application forms (spouse instead of husband or wife) and generally may not ask The ECOA assigns to the Federal Reserve Board about the sex (or about the race, color, religion, the responsibility for issuing the regulations imor national origin) of the applicant. plementing the act. Regulation B, which the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of the Board's Equal Credit Regulation: An Overview 915 There are some general exceptions to these assure access to the collateral in the event of limits on information. First, to enable enforce- default. ment agencies to detect unlawful discrimination, Other rules implement the statutory protecthe rules require that creditors ask for informa- tions against age discrimination by setting critetion about the applicant's sex, marital status, ria for credit-scoring systems and standards for age, and race or national origin on applications the treatment of annuities and pensions in evalufor a home-purchase mortgage. Second, the act ating creditworthiness. The law allows creditors permits lenders to offer special credit programs to use the applicant's age as a factor in credit for members of economically disadvantaged decisions in any credit-scoring system that is groups and therefore allows creditors to ask "demonstrably and statistically sound" by the some otherwise prohibited questions. For exam- Board's criteria and that does not treat an elderly ple, a lender may ask for the applicant's race to applicant less favorably on the basis of age than determine eligibility for a program limited to it treats other applicants. (The Board's regulaminority students; or a lender may ask about the tion defines elderly as age 62 or older.) spouse's income for a subsidized mortgage program in which a household's total financial re- Notification Rules. Within 30 days of receiving sources are considered. Finally, the regulation a completed application, creditors must make allows creditors to obtain information that is their decision and notify the applicant. The 30 otherwise prohibited if the creditor is required to days begin when the creditor receives all the do so by other state or federal regulations, court information necessary for a decision, which in order, or the like. some cases may include reports from credit bureaus or approval of guarantees from govern- Credit Evaluation and Credit Terms. Other ment agencies. If credit is granted, the creditor rules limit what a creditor may consider in decid- may satisfy the requirement for notification by ing whether to grant credit to an applicant. For sending the credit card or money that was reexample, the law prohibits the discounting of a quested or by providing the goods or services on wife's income and bars a creditor from assuming, credit. If credit is denied or terminated, so-called even on the basis of statistics, that an employed adverse action rules require that creditors give a woman may stop working to have or rear chil- written notice that includes specific reasons for dren. Rules also prevent the creditor from deny- the action or informs the applicant of the right to ing a woman an account in her own name. obtain the reasons. This requirement is unusual Moreover, a creditor cannot automatically as- in an antidiscrimination statute in that a written sume that a woman has become a bad credit risk notice must go to anyone to whom credit is simply because her marital status changes. To denied or whose credit account is closed, not close the account or require a reapplication, the only to members of a historically disadvantaged creditor must show that she is unable or unwill- class. One purpose of the requirement is to ing to repay. The same rules protect a customer educate applicants who are denied credit and to who has reached a certain age or has retired. help them understand the credit process. Disclo- Before the ECO A was enacted, a married sure of the reasons for denials also allows appliwoman often had to get her husband's signature cants to supplement an application or correct an to receive a loan. The signature rules of Regula- error, and documentation enables the regulators tion B limit the circumstances that allow the to examine creditors' records for patterns of creditor to ask for a cosigner. If an applicant unlawful discrimination. qualifies for individual credit under the creditor's standards, the creditor may not ask for a cosign- Credit Reporting and Other Rules. A creditor er. If a cosigner is needed, the creditor cannot that provides information on applicants to credit require that it be the spouse. The rules provide a bureaus or to other creditors must follow special limited exception for secured credit transactions: rules. Joint accounts must reflect the participathe creditor may require the signature of a tion of both spouses when both are contractually spouse on security agreements if it is needed to liable on the account or, in the case of an open- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 Federal Reserve Bulletin • December 1985 end account, when the spouse is authorized to Summary of the Changes Made. Substance use the account. This rule seeks to remedy and structure are essentially the same in the new problems that married women experienced be- regulation and the old. The new regulation is fore the enactment of the ECOA, when credit somewhat shorter, with the deletion of obsolete histories were recorded only under the hus- material and the placement of footnotes and band's name. other explanatory matter in an official staff com- Although no class of transactions is exempt mentary. Following is a summary of the changes from the act and regulation, limited exceptions in the rules; the more significant ones are disapply to some types of credit, including credit cussed later. extended for public utility service, incidental • The new rules require creditors to note the credit granted by persons not in the business of applicant's race or national origin and sex on extending credit (like dentists or doctors), securi- loan applications for the purchase or refinancing ties credit, business credit, and government of a dwelling (including mobile homes) if the credit. Firms and individuals that engage in these applicant does not volunteer the information. transactions are subject to the fundamental pro- Creditors also must take written applications for hibition against discrimination but are exempt transactions covered by this rule. from some of the procedural rules. • The Board revised the definition of applicant In keeping with the two-year statute of limita- to include guarantors for purposes of the signations set by the act for the filing of private ture rules, thus giving guarantors legal standing lawsuits, creditors must retain credit applica- to sue for violations of those rules. tions and other records for 25 months. If a • The Board adopted new rules that enable violation of the ECOA is under investigation by creditors to streamline their procedures for inthe Department of Justice or another agency, the forming applicants when additional information creditor must keep the records until the matter is is needed for a credit decision. The Board also resolved. provided additional sample forms for creditors to use in giving the reasons for a credit denial. • The Board redefined the criteria that a credit- The Review of Regulation B scoring system must meet to qualify as "demonstrably and statistically sound." Systems that Compared with the Board's changes to other meet the criteria are permitted to use the appliregulations after review, the changes to Regula- cant's age as a factor. The change makes clear tion B are not dramatic, for several reasons. that the criteria can be met by "decision tree" First, no statutory amendments mandated and other scoring systems and not only by syschanges in Regulation B, unlike the case of the tems that allocate points or assign weights to the Truth in Lending Simplification and Reform Act applicant's attributes. of 1980 for Regulation Z. Second, litigation under • The Board updated the reporting rules applithe ECOA did not reveal a great need for clarifi- cable to joint accounts held by spouses and to cation of ambiguities or modification of technical individual accounts on which a spouse is an provisions. Third, the Board was responsive to authorized user. Many of the earlier provisions civil rights activists, consumer advocates, and dealt with accounts established before 1977, women's groups, which urged the Board to avoid when the reporting requirements first went into changes that would reduce important civil rights effect. protections. Finally, many creditors said that • To improve the data available to the regulathey found most of the existing requirements tory agencies, the new regulation requires credimanageable and that changes might require them tors to retain applications withdrawn by the to alter their procedures without measurably applicant in advance of a decision. reducing the burdens placed on them. The most onerous rule for some creditors, requiring them Official Staff Commentary. In its review of to give written notice of adverse actions, is Regulation B, the Board found that it could make established by statute and thus cannot be modi- compliance easier in many cases merely by elabfied significantly by regulation. orating on the rules in a commentary without Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of the Board's Equal Credit Regulation: An Overview 917 amending them. Experience under Regulations Z lieved, would help the Federal Reserve's exam- (Truth in Lending), M (Consumer Leasing), and iners to detect practices that discourage loan E (Electronic Fund Transfers) has proven the applications on an unlawful discriminatory basis. usefulness of such a commentary. Accordingly, The Board added mortgage refinancings and the Board has published an official staff commen- loans to purchase mobile homes to the transactary to complement the revised regulation; good- tions covered by the rules for data notation. faith compliance with the official staff commen- Previously, mobile homes were covered only in tary protects creditors against civil liability. those states where they are considered real prop- The commentary incorporates Board interpre- erty. The new rules also require that creditors tations, official staff interpretations, and informal take written applications for loans covered by letters for public information issued since 1977, the data notation requirement, thus improving when Regulation B went into effect following a the information available for assessing complimajor revision. It answers questions about mat- ance. The rule requires only that creditors write ters on which creditors and regulatory agencies down the information normally considered in an have sought guidance over the years. The Board application—they need not use printed forms— contemplates an annual update of the commen- and therefore it should not impose a significant tary. burden on creditors that rely on oral applications. The regulation allows other federal agencies to MONITORING FOR COMPLIANCE THROUGH substitute their own data notation programs for ADMINISTRATIVE ENFORCEMENT the Regulation B requirements. Three agencies— the Comptroller of the Currency, the Federal To help the regulatory agencies detect unlawful Deposit Insurance Corporation, and the Federal discrimination, the Federal Reserve Board Home Loan Bank Board—have substituted monadopted a "data notation" rule in 1977, when it itoring programs that cover additional types of implemented the statutory protections against real estate loans and that require the creditor to discrimination based on race, national origin, record the applicant's sex and race or national and other factors. This rule requires creditors to origin if the applicant fails to do so. The revision ask applicants for mortgages about their race or to Regulation B adopts the notation method of national origin, sex, age, and marital status. The these three agencies: if an applicant declines to rule applies to loan applications for the purchase provide the data, the creditor must note the sex of one- to four-family residences in which the and race or national origin on the basis of visual creditor will take a security interest. Real estate observation or surname. Thus, the requirement lending was selected for special monitoring be- will be the same for all institutions supervised by cause a mortgage is usually by far the largest the financial regulatory agencies, and the Federal credit transaction that a consumer undertakes Reserve's examiners will have more complete and because unlawful discrimination in mortgage data to use in detecting unlawful discrimination. transactions can have an especially detrimental For a bank holding company, the uniformity will effect on members of minority groups. obviate the need to tailor forms and procedures The Board's revisions to Regulation B in- for each of its subsidiaries to comply with the crease slightly the number of loan types covered rules of the various agencies that supervise them. and the data to be recorded by creditors. The The change also helps mortgage bankers, for main impetus for this action came from the whom use of a standardized loan document will Federal Reserve's Consumer Advisory Council facilitate mortgage sales in the secondary marin a report to the Board analyzing the Federal ket. Reserve's implementation of the Community Reinvestment Act. The council recommended that the Board consider developing improved meth- COURT DECISIONS UNDER THE ECO A ods of collecting and analyzing data on personal characteristics of applicants. More complete In its review of Regulation B, the Board considdata about such characteristics, the council be- ered whether decisions in lawsuits brought under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 Federal Reserve Bulletin • December 1985 the ECOA involved matters that could be simpli- When the Board revised Regulation B in 1977, fied or corrected by revisions to the regulation. it adopted a definition of applicant that excludes Looking at these lawsuits, the Board found a guarantors and similar parties: sharp contrast to the thousands of Truth in Lending court cases; the Truth in Lending cases Applicant means any person who requests or who has suggested a need for simplification of the disclo- received an extension of credit from a creditor, and includes any person who is or may be contractually sure requirements and prompted the Board's liable regarding an extension of credit other than a recommendations to the Congress for simplificaguarantor, surety, endorser, or similar party [emphation. The recommendations led to the passage of sis added]. the Truth in Lending Simplification and Reform Act of 1980. The ECOA cases have numbered in The exclusion was intended to ensure that in the dozens, not the thousands, and most ECOA dealing with guarantors, creditors would not litigation has involved questions of fact rather have to follow the technical rules governing a than technical legal points of the sort raised in creditor's dealings with applicants. Because many of the Truth in Lending suits. Three issues guarantors primarily need protection against emerged from the ECOA analysis: first, a guar- practices involving cosigners, the Board believed antor's legal standing to sue for an ECOA viola- that it sufficed to make the signature rules applition; second, compliance with the requirement cable to guarantors. Given the exclusion of guarfor notice of adverse action when a creditor antors from the regulatory definition of applidenies an application or closes a customer's cant, however, several courts have held that a account; and third, coverage of consumer lease guarantor has no legal standing in court to sue for transactions by the ECOA. an ECOA violation, even of the signature rules. For example, in Morse v. Mutual Federal Savings and Loan Association, 536 F. Supp. 1271 (D. Mass. 1982), the court held that Mrs. Morse Coverage of Guarantors had no standing to sue because she was only a guarantor, even though her signature might have Before its recent revision, Regulation B express- been obtained in violation of the restriction on ly excluded guarantors from its definition of the spousal signatures. term applicant. As a result, the courts ruled that Consequently, in its review of Regulation B, guarantors did not have legal standing to sue for the Board proposed to amend the definition to violations of their rights under the regulation. include guarantors. Some industry commenters The ECOA's prohibition against discrimina- said that the proposed change would have little tion based on marital status applies in any aspect or no real impact on creditor operations, while of a credit transaction, including signature re- others opposed it. The opponents believed that quirements. As mentioned earlier, the regulation guarantors cannot be applicants for purposes of bars a requirement for a signature other than the the ECOA because they do not apply for or applicant's if the applicant meets the creditor's receive credit. Industry representatives also exstandards of creditworthiness. And should a pressed concern that the change might encourage married applicant not qualify and thus need a guarantors to engage in unnecessary litigation guarantor, the creditor may not require that the and perhaps even to sue for technical noncomplispouse be that guarantor. (In practice, the ance unrelated to any signature violation. spouse is often the person most readily available After weighing the various considerations, the and frequently will be the one to guarantee the Board revised the definition of applicant to inloan.) In addition, creditors may not ask that the clude guarantors. It based the action on the spouse sign also when a married person gives a premise that although its primary concern may personal guarantee—on a business loan, for ex- have been to protect the individual seeking credample. These rules prevent creditors from treat- it, the Congress had a broader purpose in enacting married persons as inherently less creditwor- ing the ECOA: to bar discrimination on the basis thy than unmarried persons and are thus of marital status in any aspect of a credit transacimportant to fulfilling the purpose of the ECOA. tion. Clearly, a person required to assume a debt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of the Board's Equal Credit Regulation: An Overview 919 obligation merely by virtue of being married to Sample Forms for Notifying Applicants. To the applicant has suffered discrimination based facilitate compliance with the notification rules, on marital status. Given the industry concerns the regulation provides a sample checklist form about lawsuits unrelated to signature violations, that creditors may use to inform applicants of the however, the Board revised the definition of reasons for credit denials. If properly completed, applicant to include guarantors and similar par- the checklist protects the creditor from civil ties only for purposes of the signature rules. liability. Federal Reserve Banks and the other The rule change is also consistent with the regulatory agencies have reported various probcongressional intent for enforcement through pri- lems associated with creditors' use of the form. vate lawsuits because it gives the guarantor the One court case in particular, Fischl v. General right to bring a lawsuit or to file a counterclaim Motors Acceptance Corporation, 708 F.2d 143 against a creditor. To recover damages, the (5th Cir. 1983), involved the creditor's faulty guarantor must prove that the creditor violated completion of the sample form and raised questhe signature rules and also must establish the tions about whether the reasons given satisfied damages suffered. the standard for specificity set by the act and Regulation B. To help creditors comply fully with the law Notification of Adverse Action and to better inform applicants of the reasons for a credit denial, the Board has revised the sample The second issue raised by the court cases checklist form. It has also added several other involves not so much public policy as practical samples in various formats; by providing a varieproblems of compliance with the law—namely, ty of forms, the Board seeks to inform creditors with the requirement for notice of adverse ac- that they have wide latitude in developing their tion. That notice must include a summary of the own notices to applicants. Many creditors have applicant's rights under the ECO A and the name adopted the original checklist; the revised rules and address of the creditor's supervisory agency. allow them to continue to use it as long as the Creditors also must give the principal reasons for reasons checked correspond accurately to the the adverse action or a written statement of the reasons for a denial. applicant's right to receive the reasons upon request. Notice for Incomplete Applications. Before Consumers generally find the information ex- the latest revision, Regulation B required the plaining credit denials useful. In a Board survey creditor to advise the applicant when, after an in 1981-82, nearly three-fourths of the respon- application was received, supplementary infordents who had been denied credit said the notice mation was needed for a credit decision. In of denial had helped them understand their own addition, the creditor had to provide an adverse situation and the credit-granting process in gen- action notice if ultimately the credit was not eral. A smaller proportion said the reasons given granted, even though the reason was simply that were not specific enough or did not tell them the supplementary information was not supplied. anything they did not already know. The new rule adopted by the Board permits On the other hand, there is evidence—from creditors to notify the applicant of the informacourt cases, consumer complaints, inquiries tion needed for the credit decision, request that from creditors, and reports from the regulatory the information be supplied by a certain date, agencies—that creditors have experienced diffi- and advise the applicant that the application will culties in complying with these notification re- not be considered further without that informaquirements. After analysis of creditor problems tion. The notice must be given in writing, but the and of consumer needs, the Board revised the creditor has the option to seek the information sample form for notifying applicants of credit orally before sending the notice. The creditor denials, expanded the number of forms available need not give any further notice if the applicant to creditors, and adopted a new procedure for fails to respond. creditors to use in dealing with incomplete appli- In arguing against the old rule, some creditors cations. said they should not have to send a notice of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 Federal Reserve Bulletin • December 1985 adverse action when in fact they are unable to on policy grounds: it seems inconsistent to allow make a credit decision because information is lessors to consider race and other factors while missing. They believed that they should be al- creditors are prohibited from doing so. Morelowed to disregard incomplete applications, over, some lease transactions are similar in many treating them as if they were withdrawn without ways to credit transactions; in fact, some institurequesting the missing information. In their tions that offer both credit and lease financing view, an applicant who receives no response to use the same types of scoring systems for the an application will naturally inquire about its two. Finally, inasmuch as the Board has broad status, and the failure do so, they argued, signals rulemaking authority for consumer credit regulaa lack of interest in the credit andjs tantamount tions, as the Supreme Court declared in Ford to a withdrawal. The Congress intended, howev- Motor Credit Co. v. Milhollin, 444 U.S. 555 er, that an applicant be notified in writing when a (1980), the Board conceivably could cover conrequest for credit is not granted. For that reason, sumer leases under Regulation B. the Board decided against allowing creditors to The Board believes, however, that the Court treat an incomplete application as withdrawn. of Appeals interpreted the ECOA definition of The new rule lessens the burden on creditors credit too broadly when it concluded in the without reducing important ECOA protections Brothers case that the granting of a lease is an because applicants will be fully informed of any extension of credit. The Congress has consistentadditional information that is needed. ly viewed lease and credit transactions as distinct financial transactions and has treated them separately under the Consumer Credit Protection Coverage of Lease Transactions Act. The Board believes that the Congress did not intend to subject lease transactions to the On its face the ECOA applies only to credit ECOA unless the transaction results in a "credit transactions. Does it also apply to lease transac- sale," as defined in the Truth in Lending Act and tions for automobiles, television sets, and other Regulation Z—that is, unless the consumer is personal property? A three-member panel of the obligated to pay a sum under the lease agreement U.S. Court of Appeals for the Ninth Circuit ruled that is substantially equal to (or greater than) the that it does, in Brothers v. First Leasing, 724 total value of the leased property and the con- F.2d 789 (9th Cir.), cert, denied, 105 S.Ct. 121 sumer has the option to own the leased property (1984). Mrs. Brothers had sued First Leasing at the end of the lease term for little or no after she was denied an automobile lease because additional cost. of her husband's earlier bankruptcy. The lower Were there evidence of discrimination by lescourt dismissed the lawsuit on the grounds that sors based on personal characteristics, as there the ECOA applies only to credit transactions and was in credit transactions, it might signal a need not to consumer leases. But the appellate court for coverage by the ECOA or a similar law. But, interpreted the term credit transaction as sweep- aside from Brothers, little evidence suggests ing enough to include consumer lease transac- such discrimination. Furthermore, core provitions, given the congressional intent to eradicate sions of the regulation could impose significant discrimination based on marital status, and the burdens for some segments of the industry— U.S. Supreme Court denied First Leasing's peti- furniture and appliance lessors, for example—by tion for review of the decision. Consequently, requiring them to adopt new procedures. Other the appellate ruling in Brothers is binding law in lessors would be less affected; financial institu- California and other states within the jurisdiction tions that engage in automobile leasing already of the Ninth Circuit, and it is being enforced in comply with Regulation B in many cases. those states by the Federal Reserve and other In light of all these considerations, the Board regulatory agencies. has not applied Regulation B to leasing. Instead, In the review of Regulation B, the Board it will monitor the practices followed in lease considered whether to establish a uniform rule transactions through contacts with government on leasing throughout the nation. An amendment agencies, the leasing industry, and consumers. to cover lease transactions could be supported The Federal Reserve's enforcement activities in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of the Board's Equal Credit Regulation: An Overview 921 the Ninth Circuit will also provide the Board er, a lender is currently permitted to ask about with first-hand experience regarding the applica- marital status. tion of the ECOA to consumer leases. • Like the applicant for consumer credit, the applicant for business credit has the right to be OTHER ISSUES CONSIDERED IN THE REVIEW notified of the action taken by the creditor on an application, though within "a reasonable time" In its review of Regulation B, the Board consid- rather than 30 days. The applicant also has the ered whether other aspects of the regulation right to a written statement of the principal were amenable to modifications that would ease reasons for a denial of credit; but the applicant burdens for creditors or improve protections for must request it in writing and does not automaticredit applicants. cally receive a written notice of the right to receive the statement. Treatment of Business Credit Transactions • To ensure that records will be available to bank examiners, other official investigators, and The Board considered the regulation's treatment the courts, the applicant for business credit has of business credit transactions amid renewed the right to request that the creditor retain the public discussion about the availability of financ- records for 25 months. Otherwise, the creditor ing to businesses owned by women. A 1984 need retain them only for 90 days. survey taken by the National Association of The limited exceptions applicable to business Women Business Owners showed that its mem- credit noted above have been the subject of bers continue to view financing as a major prob- extensive rulemaking proceedings: in 1975 when lem. Lenders suggest that various factors have a Regulation B was first adopted, in 1976 when the bearing on whether a loan is granted and that regulation was revised, and again in 1978-82. In financing is a problem for many small busi- 1978, the Board proposed amendments to Regunesses, not only for those owned by women or lation B that would have required creditors to members of minority groups. Many businesses notify business borrowers in writing of their right fail because they are undercapitalized; some to a statement of reasons for credit denials, cannot offer a lender sufficient evidence that they eliminated the partial exception from recordcan succeed. In other cases business owners are keeping, and prohibited inquiries about marital not fully familiar with the type of information status. These proposed changes would have apneeded for a credit evaluation and thus may not plied to business loan transactions of less than present an adequate application to the lender. $100,000. Final action was delayed until 1982, Nonetheless, many businesswomen assert that when the Board withdrew the proposed amenddiscrimination based on sex and marital status ments after further public comment. The Board compounds their problems in obtaining business was reluctant at that time to expand the requireloans. ments applicable to business credit given the lack Although the Board's authority under the stat- of evidence of unlawful discrimination. ute allows it to provide exceptions to facilitate Public statements reveal confusion about the compliance, the Board has not exempted any ECOA's application to business credit. Some class of transactions totally from the regulation. articles have mistakenly stated that business- Lenders may not discriminate against business women are not fully protected under federal law applicants on any of the prohibited bases, and against discrimination based on sex or marital applicants for business credit have most of the status. Reports in the media have carried acprotections that the regulation affords to some- counts of questionable lender practices encounone asking for consumer credit: tered by businesswomen seeking credit, some of • Lenders may not ask a married businesswom- which have been found to violate the law. In one an questions about her husband or require his case, Sego v. First National Bank, No. C83 personal guarantee, unless he is involved in the 0932-L(s) (W. D. Ky. filed Sept. 14, 1983), the business. (Other rules may apply if a business- applicant was required to submit a joint applicawoman offers assets owned jointly with her hus- tion with her husband. And then, although the band as collateral for the business loan.) Howev- loan officer said that her own credit record Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 Federal Reserve Bulletin • December 1985 qualified her, the loan was denied because of her Prescreened Solicitations husband's credit history. The bank was held liable for having discriminated on marital status. Regulation B generally protects only persons The concerns expressed by businesswomen who have actually applied for credit. To fulfill have drawn congressional support for strength- the purposes of the act, however, the regulation ening protections under the ECOA. Bills intro- also bars creditors from prescreening applicants duced in both the Senate and the House of on a prohibited basis. Such prescreening of po- Representatives would require the Board to hold tential applicants could occur in face-to-face public hearings before granting exceptions for interviews or in telephone conversations. Thus it business credit transactions. Moreover, any ex- is unlawful, for example, for a creditor to disceptions granted would be subject to a five-year suade someone from applying for credit because "sunset" provision, requiring another public the individual is a woman or a member of a hearing before renewal. minority group. In light of the renewed concern among con- The Board considered whether prescreening in gressional leaders and women's groups, the the context of direct-mail marketing should also Board gave particular attention to the rules appli- be subject to Regulation B. Credit card issuers cable in business credit transactions. The Board and others are increasingly using prescreened believes that those rules—especially the ones solicitations to reach new customers. The card that bar a lender from asking for, or considering, issuer usually identifies potential customers from information about a spouse who has no connec- such sources as magazine subscription lists or tion to the business and from requiring the hus- auto club memberships and then asks a credit band's loan guarantee—protect businesswomen reporting agency to check the files of the persons against unlawful discrimination. And the appli- listed, specifying factors in the credit history to cant's right to a written notice of a credit denial look for, such as certain levels of income or other and to retention of records ensures that docu- major credit accounts. The card issuer may inmentation will be available for any investigation vite all persons whose credit histories meet miniof alleged discrimination. mum standards to submit an application, which it The Board considered enhancing the existing will then evaluate. Or the issuer may offer a protections by eliminating or modifying the pre- preapproved credit line to individuals selected sent exceptions. Such changes would require through the prescreening process. The targeted new rulemaking, however, because the draft individuals technically are not applicants when regulation that the Board published in March did the prescreening occurs because they have not not propose these revisions. The Board therefore requested credit. And they cannot be "discourretained the existing rules but has not foreclosed aged" from applying because they do not even future regulatory action. know that the prescreening is taking place. Of Better informing women (and members of mi- course, once an individual receives the solicitanority groups) about their rights under the law tion or is asked for more information, Regulation may be an effective way to assist business per- B applies in its entirety. But there is no recourse sons in enforcing those rights and less costly than for those who are screened out. subjecting business credit fully to the rules appli- Prescreening that involves credit-scoring uncable in consumer credit transactions. The Board der accepted statistical principles and methodis therefore preparing a pamphlet regarding the ology appears to reduce the likelihood of inten- ECOA and business credit transactions for distri- tional discriminatory practices. Not all bution through government agencies, women's prescreening systems use factors that are sciengroups, and other organizations. An increase in tifically selected, however, and some could public awareness of the rights of business credit screen out members of classes protected by the applicants and of the responsibilities of business ECOA. credit lenders should help significantly in ensur- Coverage by the regulation, on the other hand, ing against unlawful discrimination. But if it could call into question direct-mail marketing appears that regulatory action is still called for, that legitimately targets a particular segment of the Board is prepared to make appropriate the population on a basis such as sex—as when a changes in the requirements. women's clothing retailer enters a new market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of the Board's Equal Credit Regulation: An Overview 923 area and targets women for credit card accounts. advocates have suggested that the regulation In addition, although the potential for abuse should prohibit the use of criteria that often exists, little evidence of unlawful discrimination unfairly bar members of minority groups from has surfaced. Consequently, the Board has not obtaining credit, such as homeowner ship, ficovered the prescreening of solicitations at this nance company references, or particular types of time. However, should the Board discover evi- occupation. Under the approach taken by the dence of abuse, it could take appropriate action courts in the employment area, however, such through a regulatory amendment. standards could be permissible if they were found to have a "manifest relationship" to creditworthiness. To overturn such a finding, the The Effects Test in Credit Transactions plaintiff would have to establish that another, less discriminatory criterion was available to the The effects test is a judicial doctrine that was creditor. developed under Title VII of the Civil Rights Act The Board considered whether developments of 1964 to deal with unlawful discrimination in since 1976 would support a change in the regulaemployment. In that area, application of the tion. Of the relatively few cases brought under doctrine has meant that practices neutral on their the ECOA, only one or two have in any way face may be held unlawful if they disproportion- addressed the effects test, and these do not ately harm members of a protected class. An provide much judicial guidance to applying the employer will have a defense, however, if the test in credit transactions. The Board decided to practice in question has a "manifest relation- retain the reference to the effects test as a way to ship" to employment. remind creditors of the legislative intent, leaving The reports of both the Senate and the House the development of the effects test and its applion the ECOA state that the effects test should be cation to the courts. A brief discussion in the applied to credit discrimination. They specifical- staff commentary seeks to give creditors a simple ly refer to the landmark court decisions, Griggs explanation of how the test might be applied in v. Duke Power Co., 401 U.S. 424 (1971), and the credit area. Albemarle Paper Co. v. Moody, 422 U.S. 405 (1975), in which the concept was enunciated. Since 1976 the regulation has contained a CONCLUSION footnote calling attention to the applicability of the effects test to credit transactions. In the The Board's review of Regulation B indicated review of Regulation B, the Board considered that, with the minor adjustments described here, whether a different treatment of the effects test in the rules offer a workable guide for creditors to the regulation might be appropriate. Some credi- provide, and applicants to secure, equal access tors had asked the Board to clarify the test by to credit. Although the review has been completgiving explicit guidance on its application to ed, the Board will continue to monitor developcredit; others wanted the reference dropped from ments to ensure that the Equal Credit Opportunithe regulation. From the other side, civil rights ty Act is achieving its intended social goals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 Financial Developments of Bank Holding Companies in 1984 This article was prepared by Martin H. Wolfson EARNINGS AND PROFITABILITY of the Board's Division of Banking Supervision and Regulation. Earnings results for the 345 bank holding companies were dominated by the performance of the Nineteen eighty-four marked the second full year largest companies, those with more than $5 bilof recovery from the recession that ended in lion in assets, whose net income declined 7.9 November 1982. The economy expanded rapid- percent during 1984. For the universe (all 345 ly, particularly in the first half of the year, and companies), net income fell 2.0 percent.2 Net loan growth at banking organizations was rela- income of the smaller bank holding companies tively strong. Usually at this stage in an econom- increased, however, especially for those with ic recovery, the quality of loan portfolios would assets of between $1 billion and $5 billion (see be expected to improve, but loan losses at bank table 1). holding companies in 1984 continued to mount. Net operating income for the universe declined The sharp rise in loan-loss provisions negatively 2.7 percent. In general, this decline was due to affected earnings growth and profitability; both the growth of noninterest expenses and a dramatwere down sharply from levels in 1983. Despite ic increase in loan-loss provisions. These negathese earnings difficulties, however, and despite tive factors more than offset a strong rise in the strong growth of loans, bank holding compa- noninterest income, a moderate increase in net nies continued to increase their capital ratios interest income, and a decline in the tax equivaduring 1984. lent adjustment (see later discussion). Tax ex- This review of major financial developments of penses were relatively flat. Also, small absolute bank holding companies during 1984 is based on gains from both securities transactions and exdata from a group of 345 bank holding companies traordinary items moderated the percentage dethat had more than $100 million in consolidated cline in net income growth. assets as of year-end 1984.1 These companies Net interest income (taxable equivalent) of the controlled aggregate assets of $1,785.5 billion, or 345 companies rose 8.1 percent in 1984 to $57.9 about 70 percent of the assets controlled by all billion, up from $53.6 billion in 1983 (table 2). U.S. commercial banks. This article discusses Net interest income, the largest component of recent developments in earnings and profitabili- earnings, represents the difference between inty, balance sheet composition, asset quality, and terest earned on loans and investments and the capital. interest expense incurred on interest-bearing li- Data are presented for the entire universe of abilities. For analytical purposes, net interest 345 companies and for three size classes or peer income is adjusted to a tax-equivalent basis so groups: 73 holding companies with more than $5 that both taxable and tax-exempt income can be billion in assets, 113 with $1 billion to $5 billion in compared. assets, and 159 with $100 million to $1 billion in The increase in net interest income resulted assets. The data used in the review were drawn from strong growth in the volume of earning from the Federal Reserve's Bank Holding Company Financial Supplement (form FR Y-9). 2. It should be noted that the $1.0 billion loss by the Continental Illinois Corporation during 1984 had a major impact on these results. If Continental is excluded from the 1. As of December 31, 1984, 6,146 registered bank holding earnings comparisons, net income of the remaining 344 companies were in existence. companies increased 10.6 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

925 1. Net operating income and net income, 1980-84 Percent change Size class 1979-80 1980-81 1981-82 1982-83 1983-84 Net operating income1 UUUUnnnniiiivvvveeeerrrrsssseeee2222 10.3 9.0 7.0 4.9 (2.7) $$$$111100000000 mmmmiiiilllllllliiiioooonnnn ttttoooo $$$$1111 bbbbiiiilllllllliiiioooonnnn 1.6 4.8 (5.7) 22.9 9.4 $$$$1111 bbbbiiiilllllllliiiioooonnnn ttttoooo $$$$5555 bbbbiiiilllllllliiiioooonnnn 14.2 5.1 8.2 6.7 19.1 $$$$5555 bbbbiiiilllllllliiiioooonnnn oooorrrr mmmmoooorrrreeee 10.0 10.1 7.4 3.6 (8.6) Net income UUUUnnnniiiivvvveeeerrrrsssseeee2222 8.2 7.9 7.6 10.8 (2.0) $$$$111100000000 mmmmiiiilllllllliiiioooonnnn ttttoooo $$$$1111 bbbbiiiilllllllliiiioooonnnn 1.4 3.4 (4.2) 26.4 11.5 $$$$1111 bbbbiiiilllllllliiiioooonnnn ttttoooo $$$$5555 bbbbiiiilllllllliiiioooonnnn 12.6 .1 9.7 15.7 19.6 $$$$5555 bbbbiiiilllllllliiiioooonnnn oooorrrr mmmmoooorrrreeee 7.6 10.0 7.8 8.9 (7.9) 1. Income before securities transactions and extraordinary items. 2. Here and in the following tables the universe was 345 companies. assets, despite narrower net interest margins. Spurred by deregulation, increased capital re- Net interest margins, as measured by net interest quirements, and the increasingly competitive income as a percentage of average assets, de- business environment, companies have been agcreased to 3.39 percent in 1984 from 3.42 percent gressively developing and expanding sources of in 1983 (see table 3). The decline in margins was noninterest earnings. Noninterest revenues are sharpest during the first part of the year, as derived from a variety of activities including interest rates rose rapidly. Margins improved service charges on deposit accounts; commissomewhat during the second half, when interest sions and fees on fiduciary, financial, and other rates fell, because the interest cost of liabilities business services; bond and foreign exchange declined more than the yield on earning assets. trading activities; profits from venture capital Noninterest income, the second major compo- operations; and sales of assets. The progress nent of earnings, has become an increasingly made by the industry in generating noninterest important source of revenue to the banking in- earnings can be seen in table 3, which shows that dustry in recent years. In 1984, noninterest in- the ratio of noninterest earnings to average ascome (exclusive of gains on securities invest- sets has climbed steadily from 0.93 percent in ments) continued to grow at a dramatic pace, 1980 to 1.43 percent in 1984. increasing 27.6 percent over the 1983 level. The high level of loan charge-offs in 1984 (see the section on credit quality) was reflected in sharply increased provisions for loan losses. The 2. Selected income statement items, 1983 and 19841 3. Selected income statement items, 1980-841 Dollar amount (millions) CChhaannggee Percent of average assets Item ((ppeerrcceenntt)) 1983 1984 Item 1980 1981 1982 1983 1984 Net interest income2 53,575 57,915 8.1 Net interest income2 3.07 3.06 3.28 3.42 3.39 Noninterest income 19,174 24,460 27.6 Noninterest income .93 1.05 1.11 1.22 1.43 Noninterest expense3 45,445 52,742 16.1 Noninterest expense3 2.46 2.60 2.79 2.90 3.09 Loan-loss provision 7,105 10,229 44.0 Loan-loss provisions .26 .26 .38 .45 .59 Income before taxes2,3 ... 20,199 19,404 (3.9) Income before taxes2-3 1.27 1.24 1.21 1.29 1.13 Taxes 2,964 2,970 .2 Taxes .25 .19 .16 .18 .17 Tax-equivalent adjustment 7,681 7,142 (7.0) Tax-equivalent adjustment. .36 .40 .41 .49 .41 Net operating income4 ... 9,554 9,293 (2.7) Net operating income4 .66 .65 .63 .61 .54 Securities gains (losses) .. 60 73 21.7 Securities gains (losses)5... (.02) (.03) (.02) .00 .00 Extraordinary items 32 92 187.5 Net income .63 .62 .60 .61 .55 Net income 9,647 9,457 (2.0) 1. Details may not add to totals because of rounding. 1. Details may not add to totals because of rounding. 2. Fully taxable equivalent. 2. Fully taxable equivalent. 3. Includes minority interest. 3. Includes minority interest. 4. Income before securities transactions and extraordinary items. 4. Income before securities transactions and extraordinary items. 5. Includes extraordinary items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 Federal Reserve Bulletin • December 1985 345 companies set aside $10.2 billion in loan-loss 4. Return on average assets, 1980-841 provisions, an increase of 44.0 percent from the Percent $7.1 billion in 1983. Provisions for loan losses Size class 1980 1981 1982 1983 1984 represent a charge against income that is taken to maintain a reserve for potential loan losses. Universe .63 .62 .61 .62 .55 $100 million to $1 billion... .80 .76 .67 .75 .74 In 1984, overhead expenses rose 16.1 percent $1 billion to $5 billion .87 .78 .76 .78 .82 $5 billion or more .59 .59 .58 .58 .49 over 1983 levels. This increase compares unfavorably with the figure of 13.3 percent for the 1. Net income divided by average assets. 1982-83 period, and it is well ahead of the growth of assets in 1984 of 9.9 percent. In recent years, amounted to $92 million in 1984 compared with expenses for overhead have outpaced the growth $32 million in 1983. in assets by a considerable margin and have Return on assets and return on equity, two represented a significant drag on earnings and important measures of profitability, declined profitability. sharply in 1984. Return on average assets of the The largest component of noninterest over- overall group, as measured by the ratio of net head expense is salaries and employee benefits, income to average assets, declined to 0.55 perrepresenting roughly 52 percent of the total. cent from 0.62 percent in 1983. As shown in table These expenses rose 13.9 percent over 1983 4, the averages for the smallest and largest bank levels. Occupancy and equipment expenses, holding companies declined, while the average which accounted for about 17 percent of total for companies in the medium-sized group imoverhead in 1984, increased 17.0 percent from proved. A similar pattern occurred with respect the year-earlier level. The growth in occupancy to returns on average equity (table 5). The averand equipment expenses reflects the continued age return on equity for the overall group fell to heavy investment of the banking industry in 10.50 percent from 12.21 percent a year earlier. electronic banking and communications equipment. Other overhead expenses increased 19.7 5. Return on average equity, 1980-841 percent. Percent Provisions for income taxes in 1984 were near- Size class 1980 1981 1982 1983 1984 ly constant in absolute amount compared with those of a year earlier. Income before taxes on a Universe 13.89 13.37 12.71 12.21 10.50 $100 million to $1 billion... 12.51 11.78 10.33 11.83 11.78 taxable-equivalent basis was $19.4 billion in $1 billion to $5 billion 14.00 12.57 12.26 12.55 13.30 $5 billion or more 13.95 13.66 12.96 12.15 9.78 1984, down 3.9 percent from $20.2 billion a year earlier. On a taxable-equivalent basis, however, 1. Net income divided by average equity. provisions for income taxes decreased 5 percent, to $10.1 billion from $10.6 billion in 1983. The BALANCE SHEET CHANGES effective tax rate on a taxable-equivalent basis was 52.1 percent in 1984, approximately equal to In 1984, loans outstanding, the largest asset the rate of 52.7 percent in 1983. As a result of the category, increased 16.5 percent. This percenttax adjustment, net operating income showed a age increase was the largest for any year in the slightly smaller decline (-2.7 percent) compared entire period from 1980 to 1984 and occurred with income before taxes (-3.9 percent). across all size groups. For the largest companies, Gains from investment securities added slight- loans increased 15.5 percent. Loan growth was ly to earnings. In 1984, the 345 companies report- even more rapid for the smaller bank holding ed aggregate gains (after tax) of $73 million on companies, however; loans increased 19.8 perthe sale of investment securities versus $60 mil- cent for the smallest holding companies and 21.9 lion in the previous year.3 Extraordinary gains percent for the medium-sized ones. One can understand this difference in loan growth by 3. Bank holding companies that file financial reports with the Securities and Exchange Commission (SEC) adopted the securities transactions and the other for net income. Under "single-line" income reporting format in 1983, which elimi- the revised SEC reporting format, securities gains and losses nated the long-standing practice of reporting two earnings are now reported as a subcategory of "other operations figures on their financial statements—one for income before income." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1984 927 6. Changes in loan portfolios, by type of loan and size of bank holding company, 1984 Size class UUnniivveerrssee $5 billion $1 billion to $100 million to or more $5 billion $1 billion TTTyyypppeee ooofff llloooaaannn Change, Percent Change, Percent Change, Percent Change, Percent 1983-84 of total, 1983-84 of total, 1983-84 of total, 1983-84 of total, (percent) 1984 (percent) 1984 (percent) 1984 (percent) 1984 Real estate 21.3 19.8 20.4 30.2 14.1 34.6 20.7 21.7 Commercial and industrial 10.3 30.0 17.4 33.4 15.9 34.3 11.5 30.6 Loans to individuals 33.0 14.6 20.7 23.1 20.8 22.5 29.7 16.0 All other domestic -4.0 10.0 50.0 11.9 73.8 8.4 3.3 10.2 Foreign 18.3 25.7 -2.8 1.4 412.7 .0 18.1 21.5 Total 15.5 100.0 21.9 100.0 19.8 100.0 16.5 100.0 examining more closely the differences in loan declined from 12.6 percent to 10.9 percent. Holdportfolios among the three peer groups and the ings of U.S. Treasury securities actually contrends in credit demands during 1984. tracted 3.1 percent in 1984, in contrast to an Table 6 shows the loan portfolio for bank increase of 43.4 percent in 1983. State and muholding companies in the three peer groups, nicipal securities held by the 345 companies fell indicating the relative importance of each catego- 16.0 percent in 1984, while government agency ry of loan during 1984 and percentage changes securities increased only 5.6 percent. In confrom 1983 to 1984. Commercial and industrial trast, loans and leases jumped from 59.8 percent loans made up approximately one-third of the of total assets in 1983 to 63.4 percent in 1984. loan portfolio of all three peer groups. For the On the liability side of the balance sheet, the largest companies, the second-largest category largest positive change occurred in savings deof loans was foreign loans. In fact, in the uni- posits, which increased from 14.7 percent to 15.8 verse of 345 companies, bank holding companies percent of total liabilities and stockholders' equiin the largest peer group held 99.1 percent of all ty during 1984. Savings deposits have been growforeign loans outstanding in 1984. In contrast, ing in importance at banking institutions ever the loan portfolios of the smaller companies are since 1982, when money market deposit acmore heavily concentrated in real estate loans counts (MMDAs) were first introduced. From and in loans to individuals. The relatively more 7.7 percent in 1981, savings deposits at the 345 rapid growth of these categories of loans, which companies increased to 10.2 percent of total resulted from strong demands for mortgage and liabilities and stockholders' equity by year-end consumer credit in 1984, led to the overall faster 1982, and to 14.7 percent by year-end 1983. growth of loans at the smaller companies. For all Other core deposits (demand, savings, and 345 companies, real estate loans increased 20.7 small time deposits) also increased in relative percent and loans to individuals, 29.7 percent. importance during 1984. Demand deposits The increase in foreign loans was smaller, at 18.1 showed a slight improvement, to 15.8 percent of percent. total liabilities and stockholders' equity. Small Despite the rapid growth of loans during 1984, time deposits increased from 11.9 to 12.7 pertotal assets for the 345 companies increased only cent. On the other hand, foreign deposits fell to 9.9 percent. For all three size groups, asset 16.0 percent and large time deposits also slipped growth was significantly lower than loan growth. slightly (although large certificates of deposit The difference was due to the decline in the were used extensively in the first half of the year growth of investments, which were curtailed to fund the strong demand for credit). Thus, partly in order to fund the strong demand for overall, the ratio of core deposits to total deposloans. its increased from 58.9 percent in 1983 to 62.1 percent in 1984. The varying composition of balance sheet items is shown in table 7. Money market invest- This trend, however, was not apparent for the ments fell to 11.0 percent of total assets, from smaller bank holding companies even though 12.4 percent in 1983, while investment securities they depend more heavily on core deposits for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 Federal Reserve Bulletin • December 1985 7. Selected balance sheet items, year-end 1983 and 1984 Percent of total assets Size class UUnniivveerrssee $5 billion $1 billion to $100 million to IItteemm or more $5 billion $1 billion 1983 1984 1983 1984 1983 1984 1983 1984 Cash (excluding interest-bearing deposits) 6.8 6.6 8.2 8.2 7.0 6.7 7.0 6.9 Money market investments1 12.7 11.2 12.0 10.9 9.2 8.2 12.4 11.0 Investment securities2 10.1 8.6 22.3 19.6 26.9 24.5 12.6 10.9 Loans and leases, net 61.5 65.2 52.1 56.0 51.9 55.5 59.8 63.4 Premises and equipment 1.4 1.4 2.0 1.9 2.0 2.0 1.5 1.5 Other assets 7.5 7.0 3.4 3.5 3.0 3.0 6.7 6.3 Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Demand deposits 14.5 14.8 21.1 20.7 18.6 17.7 15.6 15.8 Time deposits in denominations of $100,000 or more 11.6 10.6 11.6 12.1 11.4 12.4 11.5 11.0 Other time deposits 9.6 10.4 20.7 21.4 26.1 26.6 11.9 12.7 Savings deposits 12.7 13.9 22.6 22.9 27.8 27.0 14.7 15.8 Foreign deposits 21.6 19.4 1.9 1.7 .0 .0 17.8 16.0 Total deposits 69.9 69.3 77.8 78.7 83.9 83.8 71.6 71.3 Short-term borrowings3 14.9 15.1 12.3 11.4 6.4 6.4 14.2 14.2 Long-term borrowings 3.0 4.0 1.4 1.3 1.7 1.8 2.7 3.5 Other liabilities 7.2 6.5 2.3 2.3 1.6 1.6 6.2 5.6 Stockholders' equity4 5.0 5.1 6.3 6.2 6.4 6.4 5.2 5.3 Total liabilities and stockholders' equity 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1. Includes interest-bearing cash balances with other depository 3. Includes commercial paper, federal funds purchased, securities institutions, trading account securities, federal funds sold, and securi- sold under agreements to repurchase, and other borrowings with an ties purchased under agreements to resell. original maturity of one year or less. 2. Includes U.S. Treasury securities, obligations of other U.S. 4. Includes minority interest in the equity accounts of consolidated government agencies and corporations, and obligations of states and subsidiaries. political subdivisions in the United States. their funding than do the largest ones (core holding companies. Interest-bearing placements deposits in 1984 were 71.3 percent of total liabil- with other banks and federal funds sold are ities and stockholders' equity for the smallest deducted from total purchased funds to arrive at group and 39.1 percent for the largest). This net purchased funds and deducted from total relative dependence decreased slightly in 1984. assets to arrive at adjusted assets. The sharp For both the small and mid-sized companies, the decline in the dependence on purchased funds in ratio of core deposits to total deposits declined 1982 and 1983 for all three size groups was partly slightly. Demand deposits fell in importance attributable to the rapid growth of money market while large time deposits increased. 1. Ratio of net purchased funds to adjusted assets, The opposite (although complementary) trends by size of bank holding company were evident in the use of purchased funds. The largest bank holding companies, which rely upon Percent purchased funds most heavily, reduced this reli- $5 billion or more ance somewhat in 1984, whereas the smaller companies increased their use of purchased funds. $1 billion to $5 billion The ratio of net purchased funds to adjusted assets is plotted in chart 1 for the universe and for all three peer groups. Two deposit catego- $100 million to $1 billion l i lt ries—large time deposits and foreign deposits— 1980 1982 1984 along with short-term borrowings (commercial Annual data. Purchased funds include large-denomination time paper, federal funds purchased, securities sold deposits, foreign deposits, commercial paper, federal funds purchased, securities sold under agreements to repurchase, and other under agreements to repurchase, and other bor- borrowings with an original maturity of one year or less. Interestrowings with an original maturity of one year or bearing placements with other banks and federal funds sold are deducted from total purchased funds to arrive at net purchased funds less), constitute the purchased funds of bank and deducted from total assets to arrive at adjusted assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1984 929 deposit accounts and the increased attractive- 8. Past due and nonperforming loans, year-end 1983 ness of transaction accounts in an environment and 1984, all insured commercial banks1 of lower interest rates. Millions of dollars The chart indicates that the largest bank hold- Domestic Foreign ing companies improved their liquidity (in terms Type of loan and year offices offices Total of liabilities) in relation to the smaller companies. Overall liquidity comparisons, though, are more Past due 90 days and still accruing difficult to assess. Although the smaller bank 1983 10,120 1,337 11,457 (.90) (.69) (.87) holding companies have a higher ratio of deposits 1984 8,611 553 9,164 and a lower ratio of purchased funds than do the (.69) (.22) (.62) larger companies, they are not necessarily more Nonaccrual 1983 23,331 6,102 29,432 liquid because of the greater ability of larger (2.08) (3.14) (2.24) banking organizations to borrow in financial mar- 1984 23,239 11,022 34,261 (1.85) (4.41) (2.30) kets. Renegotiated "troubled" debt 1983 2,699 190 2,889 (.24) (-10) (.22) 1984 2,244 130 2,374 CREDIT QUALITY AND (.18) (.05) (.16) LOAN-LOSS EXPERIENCE Total 1983 36,150 7,619 43,778 (3.22) (3.93) (3.33) Credit quality continued to be a most serious 1984 34,093 11,706 45,799 problem for bank holding companies in 1984. (2.72) (4.68) (3.08) Despite the fact that 1984 marked the second full 1. Includes past due and nonperforming lease financing receivyear of economic recovery, loan losses contin- ables. ued to climb. Although some improvement was NOTE. Figures in parentheses are past due and nonperforming loans as a percentage of total loans and leases outstanding in the particular recorded in the percentage of domestic loans category, that is domestic, foreign, or total (gross of the allowance for classified as nonperforming, foreign office non- loan-loss reserves, but net of unearned income). performing loans increased. Data on nonperforming assets are not reported already quite low, continued to decline. The low to the Federal Reserve by bank holding compa- amount of foreign renegotiated debt may seem nies, but commercial banks were required to surprising, given the publicity surrounding the report these data for the first time in 1982. The rescheduling of large amounts of foreign debt. results for 1983 and 1984 are shown in table 8, Because this rescheduled debt generally did not which contains data for past due loans and two involve a reduction of interest or principal, howcategories of nonperforming loans: nonaccrual ever, it was not reported under renegotiated loans and renegotiated "troubled" debt.4 "troubled" debt. As shown in table 8, the total percentage of Data on loan losses for bank holding compadomestic loans past due and nonperforming de- nies are presented in table 9. Overall, net loan creased somewhat in 1984, although the percent- losses as a percentage of average loans outstandage for foreign office loans increased sharply. ing continued to increase sharply in 1984. The This deterioration of loans past due and nonper- deterioration in this ratio was attributable priforming in the foreign office category was due to foreign nonaccrual loans, which nearly doubled. Foreign renegotiated "troubled debt," though 9. Ratio of net loan losses to average loans outstanding, 1980-841 Percent 4. A loan is placed on "nonaccrual status" when principal or interest has not been paid for 90 days or more, and the loan Size class 1980 1981 1982 1983 1984 is neither well-secured nor in the process of collection. On the other hand, if the loan is both well-secured and in the Universe .37 .33 .51 .62 .77 $100 million to $1 billion... .46 .40 .65 .63 .66 process of collection, then the bank may classify the loan as $1 billion to $5 billion .46 .49 .64 .63 .59 "past due 90 days or more and still accruing." Renegotiated $5 billion or more .35 .31 .49 .62 .80 "troubled" debt refers to loans that have been restructured to provide a reduction of either interest or principal because 1. Average loans outstanding include the allowance for possible of a deterioration in the financial position of the borrower. loan losses and exclude unearned income. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 Federal Reserve Bulletin • December 1985 marily to the largest companies. For the small 10. Ratio of loan-loss provisions to average loans companies, the loan-loss percentage increased outstanding, 1980-841 slightly, and for the medium-sized companies it Percent showed a small improvement (decrease). Size class 1980 1981 1982 1983 1984 Loan losses by category of loan are not report- Universe .47 .47 .66 .77 .98 ed on the Bank Holding Company Financial $100 million to $1 billion... .54 .47 .80 .75 .85 Supplement, but this information is available for $1 billion to $5 billion .55 .61 .82 .78 .77 $5 billion or more .45 .44 .63 .77 1.02 large banks with foreign offices or with more than $300 million in assets. For these banks, 1. Average loans outstanding include the allowance for possible loan losses and exclude unearned income. commercial and industrial loans, for which quality was significantly impaired by energy-related problems, accounted for the majority of losses in The increase in loan charge-offs at bank hold- 1984. Charge-offs of commercial and industrial ing companies in 1984 was responsible for an loans (including foreign charge-offs) were 67.6 increase in loan-loss provisions as well. Table 10 percent of total charge-offs in 1984. Net charge- shows the ratio of loan-loss provisions to average offs of commercial and industrial loans as a loans for the 345 bank holding companies and the percent of such loans outstanding jumped to 1.15 three peer groups. The overall ratio increased in 1984 from 0.99 percent in 1983. This charge-off sharply from 1983 to 1984, and again, the inratio was the highest for all categories of loans crease in the overall ratio was attributable priexcept for loans to farmers, which reached 3.32 marily to the increase in the loan-loss provisions percent by year-end 1984. of bank holding companies with more than $5 Charge-offs of loans to individuals improved billion in assets. The medium-sized companies, slightly in 1984, declining to 14.7 percent of total which had fewer loan losses in 1984, actually charge-offs from 16.4 percent in 1983, and drop- decreased their ratio of provisions to loans. ping to 0.70 percent of outstanding loans to individuals from 0.72 percent in 1983. For foreign 11. Loss coverage ratio, 1980-841 loans, although net charge-offs decreased from Size class 1980 1981 1982 1983 1984 21.1 percent of total charge-offs in 1983 to 17.4 percent in 1984, as a percentage of total foreign 5.63 5.85 3.96 3.44 2.79 $100 million to $1 billion... 4.91 5.18 3.34 3.70 3.60 loans outstanding they increased to 0.58 percent $1 billion to $5 billion 5.66 5.09 3.98 3.99 4.31 $5 billion or more 5.66 6.07 3.98 3.34 2.59 from 0.51 percent in 1982.5 Policy regarding the accounting treatment of 1. Ratio of pre-tax income plus provisions for loan losses to net charge-offs. foreign loan losses during 1983 and 1984 was affected by the passage of the International The ability of banks to absorb loan losses out Lending Supervision Act in 1983. This law re- of current earnings is often measured by the loss quires banks either to charge off or to set aside coverage ratio, which is the ratio of pre-tax special reserves for foreign loans whose value income plus provisions for loan losses to net has been impaired due to transfer risk (the possi- charge-offs. For the universe of 345 companies, bility that an asset cannot be serviced in the the loss coverage ratio fell in 1984 to 2.79, the currency of payment because of a lack of foreign lowest it has been during the five-year period exchange on the part of the borrower). Most under review and less than half the ratio of 5.63 banks chose to charge off these loans rather than reached in 1980 (table 11). Here, too, the deterioto set up the special reserves, which have to be ration in the loss coverage ratio for the universe charged against income and cannot be consid- was attributable primarily to the largest compaered bank capital. nies. 5. The data for foreign charge-offs are not directly compa- CAPITAL rable with those for foreign nonperforming loans. The former are calculated according to the domicile of the borrower, In late 1981 the Federal Reserve and the Compwhereas the latter are based on the location (foreign or troller of the Currency adopted a capital adequadomestic office) of the lender. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1984 931 12. Selected capital ratios, year-end 1979-83 Percent Equity to assets1 Size class 1980 1981 1982 1983 1984 Universe 4.61 4.70 4.88 5.24 5.34 $100 million to $1 billion. 6.46 6.47 6.44 6.36 6.37 $1 billion to $5 billion ... 6.28 6.23 6.24 6.25 6.20 $5 billion or more 4.25 4.37 4.58 5.00 5.13 Equity to risk assets2 1980 1981 1982 1983 1984 Universe 6.11 5.97 6.11 6.57 6.47 $100 million to $1 billion. 8.04 8.04 8.01 8.26 8.04 $1 billion to $5 billion ... 7.98 7.94 8.01 8.24 7.91 $5 billion or more 5.70 5.55 5.71 6.21 6.14 1. Total stockholders' equity plus minority interest in equity ac- counts of consolidated subsidiaries divided by total assets less cash counts of consolidated subsidiaries divided by total assets. and due from depository institutions, U.S. Treasury securities, and 2. Total stockholders' equity plus minority interest in equity ac- obligations of U.S. government agencies and corporations. cy guidelines program. One of the major objec- though, there have been other factors responsitives of that program was to address the long- ble for the recent uptrend in capital ratios: a term decline in capital ratios of the nation's desire to prepare for future growth opportunities banks and bank holding companies. At that time and to ensure access to funds, relatively slow the largest banking organizations were singled growth of assets, and an extraordinarily large out for special treatment. The regulatory agen- volume of external equity financing. These faccies indicated that they would take appropriate tors resulted in increased capital ratios despite a steps to ensure that the largest multinational decline in the rate of internal capital generation. banking institutions improved their capital posi- Many bank holding companies have been tions over time. Indeed, since the guidelines building their capital positions to exceed levels were adopted, the largest bank holding compa- demanded by regulatory authorities in order to nies have significantly increased their equity-to- meet competitive challenges facing the industry. asset ratios, although those of the smaller com- For strategic reasons, some companies have panies have registered a small decline. been building their capital positions to gain the Ratios of both equity to assets and equity to flexibility needed to be able to take advantage of risk assets for the universe and for the three peer lending and investment opportunities that may groups are shown in table 12. The trends for both arise. Others have raised capital ratios above the ratios are similar except for 1984. In that year the minimum levels of the guidelines to address ratio of equity to risk assets for the universe concerns about risks in the economic and finandeclined after three successive increases from 1981 to 1983. The trends for the two ratios are 2. Ratio of equity to risk assets and of equity to plotted for the universe in chart 2. assets The decline in the risk-asset ratio is a consequence of the relative increase in the importance Percent of loans and the relative decrease in the importance of securities on the balance sheets of bank holding companies, as noted previously. To some extent this development reflects strong loan demand; on the other hand, though, it also represents an attempt by companies to reduce Equity to liquid assets and thereby improve traditional capital ratios calculated with total assets in the 1980 1982 1984 denominator. Annual data. Risk assets are defined as total assets less cash and due from depository institutions, U.S. Treasury securities, and obliga- In addition to the capital guidelines program, tions of U.S. government agencies and corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

932 Federal Reserve Bulletin • December 1985 cial environment or out of recognition that a 13. Rates of internal capital generation, 1980-841 strong capital base is indispensable to ensuring Percent access to money and capital markets on favor- Size class 1980 1981 1982 1983 1984 able terms. Also, as noted earlier, many banking institu- Universe 9.36 8.80 8.02 7.31 5.58 $100 million to $1 billion 9.09 8.50 7.19 8.72 8.46 tions have been consciously attempting to curb $1 billion to $5 billion... 9.52 8.06 7.66 7.93 8.75 $5 billion or more 9.33 8.99 8.16 7.08 4.69 asset expansion in order to improve their capital positions. Companies have been scaling down 1. Net income less dividends on common and preferred stock as a low margin operations that are asset intensive. percent of average stockholders' equity. Also, institutions are developing "off-balancesheet" banking businesses and employing off- capital ratios, bank holding companies turned to balance-sheet and other financing arrangements the capital markets. External capital financing of to minimize asset growth. For example, in recent the banking industry reached record levels in years several large banking institutions have 1982-84. In 1982 and 1983, external capital fideveloped active loan-resale programs. Under nancing was primarily in the form of perpetual these programs loans are originated and sold to adjustable-rate preferred stock, whereas in 1984 other financial institutions for a fee. These pro- bank holding companies concentrated on the grams enable the originating institutions to gen- issuance of mandatory convertible securities. erate earnings without recording assets on the Both types of capital instruments are very new balance sheet. Other techniques and methods of (since 1982), and both have been designed to keeping assets off the balance sheet include the qualify as "primary capital" under the new capileasing of property and equipment under operat- tal adequacy guidelines. ing lease arrangements in lieu of direct owner- The adjustable-rate preferred stock was strucship, and the conducting of business under joint tured to trade at or near par value to enhance its venture, limited partnership, or similar arrange- attractiveness to investors. In 1983 the banking ments that enable the holding company to avoid industry raised more than $2.5 billion from the full consolidation of the assets of the businesses sale of such stock, up from $1.9 billion in 1982. In on the holding company's balance sheet. 1984, though, total issuance fell to less than $600 The slowdown in earnings growth that has million. This slowdown resulted from an overoccurred over the past several years has made it supply of adjustable-rate preferred stock, and the difficult for bank holding companies to increase failure of the issues to trade reliably near par. capital ratios through the retention of earnings. (Preferred stock, though, may make a comeback Over the 1980-84 period the rate of internal with a new instrument called money market capital generation, which measures the rate at preferred stock; with these issues the dividend which capital is accumulated through the reten- rate is set by a periodic bidding process so as to tion of earnings, has declined significantly, drop- take into account the changing creditworthiness ping from 9.36 percent in 1980 to 5.58 percent in of the issuer.) 1984 (table 13). The decline in the rate of internal Mandatory convertible securities are debt iscapital generation in 1984 was largely attribut- sues that must be converted to equity within a able to the largest bank holding companies (those specified period of time. There are two types of with $5 billion or more in assets). In recent years mandatory convertible securities: equity concompanies in this group have experienced lower tract notes obligate the holder to take the comreturns on equity and higher dividend payout mon or perpetual preferred stock of the issuer in ratios, both of which have contributed to lower lieu of cash for repayment of principal; equity rates of capital formation. When internal rates of commitment notes are redeemable only with the capital generation are below the rate of asset proceeds from the sale of common or perpetual expansion, equity-to-asset ratios decline unless preferred stock. In 1984 the 25 largest bank the shortfall is made up through external equity holding companies issued $4.9 billion of mandafinancing. tory convertible securities. Nearly all of the offerings in the second half of the year were Against a background of a lower rate of inter- Eurobond issues. nal capital formation and pressures to improve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

933 Staff Studies The staffs of the Board of Governors of the indicate concurrence by the Board of Governors, Federal Reserve System and of the Federal by the Federal Reserve Banks, or by the mem- Reserve Banks undertake studies that cover a bers of their staffs. wide range of economic and financial subjects. Single copies of the full text of each of the From time to time the results of studies that are studies or papers summarized in the BULLETIN of general interest to the professions and to are available without charge. The list of Federal others are summarized in the FEDERAL RESERVE Reserve Board publications at the back of each BULLETIN. BULLETIN includes a separate section entitled The analyses and conclusions set forth are "Staff Studies" that lists the studies that are those of the authors and do not necessarily currently available. STUDY SUMMARIES REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES Helen T. Farr and Deborah Johnson—Staff, Board of Governors Prepared as a staff study in the spring of 1985 Empirical work on what have come to be known properties of the revised indexes with those of as the Divisia monetary aggregates or indexes the old indexes and with those of the conventionbegan as early as 1978. In early 1981 the Federal al monetary aggregates. The fourth section is a Reserve began releasing monthly data on these brief summary. aggregates through internal memoranda; later it Differences between the new and old indexes began releasing the data for public distribution. are shown to be closely related to the major Since early 1981, occasional changes in the un- revisions in the underlying data on asset stocks derlying data have been made and documented in and own rates. Despite the revisions, some propthe monthly releases. To date, however, no one erties of the two sets of indexes are similar. has made a comprehensive review of the data. Comparisons between the properties of the new The staff of the Federal Reserve recently com- indexes and the conventional aggregates, at completed a major revision of the indexes. This paper parable levels of aggregation, give results similar explains the revision by cataloging both the data to, though somewhat different from, those obused to calculate the indexes and the changes tained by William A. Barnett and Paul A. Spindt made to those data; the theoretical bases of the in staff study 116 (Divisia Monetary Aggregates: original indexes have not been revised. Compilation, Data, and Historical Behavior, We have abandoned the name "Divisia mone- Board of Governors of the Federal Reserve tary indexes" in favor of the term "monetary System, 1982). Finally, comparisons between a services indexes;" this change is the subject of conventional definition of money—Ml—and the the first section of the paper. The second section broadest index of monetary services presented in deals with the data: monetary asset stocks, own the study show some differences between these rates paid to holders of the stocks, and miscella- alternative measures of money but also some neous issues. The third section compares the broad similarities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 Federal Reserve Bulletin • December 1985 The study includes an appendix containing have since been revised in monthly releases, historical data on the revised indexes from Janu- which also include more recent data. ary 1970 through March 1985. Some of the data THE MACROECONOMIC AND SECTORAL EFFECTS OF THE ECONOMIC RECOVERY TAX ACT: SOME SIMULATION RESULTS Flint Bray ton—Staff, Board of Governors Peter B. Clark—Staff, International Monetary Fund Prepared as a staff study in the spring of 1985 The unprecedented size of federal deficits in Although the size of the private capital stock recent years has generated considerable discus- must decline, the effect on the stock of business sion of the longer-term consequences of fiscal fixed capital is ambiguous. The cost of business policy. In large part these deficits have resulted fixed capital will tend to rise because of the from the 23 percent reduction in personal income higher interest rate; it will tend to fall because of tax rates and the substantial acceleration in de- the acceleration in depreciation allowances. The preciation allowances legislated in the Economic housing stock is unambiguously reduced; both Recovery Tax Act of 1981 (ERTA) and the the higher interest rate and the lower personal changes in ERTA stipulated in the Tax Equity income tax rates raise its cost. and Fiscal Responsibility Act of 1982 (TEFRA). In the study's principal analysis, the effects of This study uses the Federal Reserve Board's ERTA/TEFRA are calculated as the difference MPS (MIT-Penn-Social Science Research Coun- between two simulations—one containing the cil) quarterly econometric model of the U.S. provisions of ERTA/TEFRA and the other witheconomy to investigate the longer-term conse- out these tax provisions—with monetary policy quences of the main provisions of these tax laws. adjusted to keep the unemployment rate the The fiscal shift generated by ERTA/TEFRA same in each. This strategy eliminates the shortresults in a stock of government debt that is run effects on aggregate demand of the fiscal permanently higher than otherwise would have policy change, making it easier to distinguish the been the case. Given the structure of the model, longer-run consequences. The experiment shows the key components of which are discussed in that ERTA/TEFRA significantly skews the comthe study, the following conclusions were drawn position of output toward consumption and away in advance of the simulation analysis. The real from housing. The formation of business capital interest rate must rise to reduce the size of the is boosted in the short run but eventually it too is private capital stock so that a larger share of reduced. Consequently, potential output is lower domestic wealth will be available for investment in the long run. Furthermore, the analysis points in government securities. The rise in the real to the likelihood that the ERTA/TEFRA fiscal interest rate does not permanently increase pri- policy would, if maintained, eventually push the vate saving, and thus it does not increase the real after-tax rate of interest above the growth amount of domestic wealth that individuals de- rate of real output. Under such conditions, the sire to hold. The increase in the interest rate does ratio of federal debt to GNP would grow explogenerate an inflow of foreign wealth that can sively unless fiscal policy were made sufficiently absorb part of the increase in the government restrictive. • debt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

935 Industrial Production Released for publication October 16 the production of defense and space equipment, construction supplies, and some materials. At Industrial production edged down 0.1 percent in 124.7 percent of the 1977 average, production in September. Revised data for the previous three September was about 1 percent higher than that months now show an increase of 0.6 percent in of a year earlier; the preliminary index for the August, a decline of 0.2 percent in July, and a third quarter was 1 percent higher than that for rise of 0.2 percent in June. In September, de- the second quarter at an annual rate. clines occurred in consumer goods and output of In market groups, output of consumer goods business equipment, while there were gains in declined 0.3 percent in September, reflecting a TOTAL INDEX 1 1 1 1 1 1 Durable Nondurable / - 100 - ^^ \y . PENFnTeRrRgNy; 80 i J L 160 _ CONSUMER GOODS INTERMEDIATE PRODUCTS 140 Business supplies 120 100 \ 80 Construction supplies 140 MOTOR VEHICLES AND PARTS 120 100 80 60 1979 1981 1983 1985 1979 1981 1983 1985 All series are seasonally adjusted. Latest figures: September. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 Federal Reserve Bulletin • December 1985 1977 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuuppp 1985 1985 SSSeeepppttt... 111999888444 tttooo SSSeeepppttt... Aug. Sept. May June July Aug. Sept. 111999888555 Major market groups Total industrial production 124.8 124.7 .0 .2 -.2 .6 -.1 1.1 Products, total 132.6 132.4 .4 .2 -.1 .8 -.1 2.8 Final products 132.8 132.6 .3 .0 .0 .8 -.1 2.2 Consumer goods 120.9 120.6 .4 .3 -.3 .7 -.3 1.9 Durable 113.7 112.3 .3 .2 -.8 2.3 -1.2 .7 Nondurable 123.6 123.6 .5 .3 -.1 .2 .0 2.4 Business equipment 142.6 142.2 -.1 -.8 .3 1.0 -.2 2.2 Defense and space 175.2 176.9 .6 1.3 .1 .9 1.0 8.3 Intermediate products 131.7 131.7 .8 .8 -.4 .7 .0 4.8 Construction supplies 121.2 121.4 .7 .9 .3 1.3 .2 5.8 Materials 114.2 114.2 -.7 .1 -.4 .3 .0 -1.5 Major industry groups Manufacturing 127.7 127.5 .0 .1 .1 .6 -.1 1.5 Durable 129.1 128.6 -.2 -.3 .1 1.1 -.3 1.1 Nondurable 125.7 125.9 .3 .6 .2 .0 .2 2.3 Mining 108.0 107.2 .2 .7 -1.7 -.7 -.7 -5.7 Utilities 112.3 113.4 .1 -.3 -1.3 .3 1.1 3.5 NOTE. Indexes are seasonally adjusted. reduction in durable goods and no change in tember, with reductions in most types of equipnondurable consumer goods. Production of auto- ment. Production of construction supplies, howmotive products was down 2.1 percent following ever, rose for the seventh consecutive month. sharp gains in July and August. In September, Output of total materials was unchanged for autos were assembled at an annual rate of 8.1 September as durable materials declined 0.6 permillion units, compared with a rate of 8.3 percent cent and nondurable and energy materials inin August, and output of lightweight trucks de- creased moderately. clined after rising sharply in the previous two In industry groups, durable manufacturing was months. Output of home goods, which includes down 0.3 percent in September as output of appliances, also was reduced in September, metals and machinery declined. Nondurable bringing production to a level more than 5 per- manufacturing, however, increased slightly. cent below that of a year earlier. Output of Mining output fell further during the month, but business equipment declined 0.2 percent in Sep- utility output was up more than 1 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

937 Statements to Congress Statement by Preston Martin, Vice Chairman, payor institution. Every institution in the collec- Board of Governors of the Federal Reserve Sys- tion stream has an interest in moving the check tem, before the Subcommittee on Financial In- forward as rapidly as possible to obtain payment stitutions Supervision, Regulation and Insurance from the payor. This basic incentive has resulted of the Committee on Banking, Finance and Ur- in a forward collection process that is highly ban Affairs, U.S. House of Representatives, automated and efficient. Checks are encoded in October 10, 1985. magnetic, machine-readable inks with code numbers identifying the payor, the drawer's account I am pleased to appear before this subcommittee number, and the amount. These techniques allow to present the views of the Board of Governors the checks to be processed by computer-conof the Federal Reserve System on delayed avail- trolled reader-sorters that sort the checks and ability. Many banks, savings and loan associa- send them on their way with great speed and tions, credit unions, and other financial interme- efficiency. The Federal Reserve System and diaries, such as money market funds, have large correspondent banks maintain special continued to maintain delayed availability poli- transportation networks to link institutions of cies: that is, they place holds ranging from sever- first deposit and payor institutions. Continual al days to two or more weeks on funds that their competition among depository institutions that customers deposit by check. This practice arises offer collection services assures that this process from the institutions' concern for credit risks will continue to be self-improving. arising from the return of checks after the pro- The incentive to move checks as quickly as ceeds of the checks have been made available to possible is not, however, present in the return depositors, and it has generated numerous com- process. In contrast to the forward collection plaints from depositors. Many of their customers process, in which availability to the institution of are either unaware of the length of the cycle for first deposit depends on when the check will collection and return, or they feel that the risks reach the payor institution, the payor and the associated with their deposits do not warrant collecting institutions returning checks will be holds. In the past five years, the practice has reimbursed promptly upon return of a check to generated considerable interest among state and their prior endorser. Thus, they have no incenfederal legislators, as well as members of the tive for speeding the return to the institution of public. Committees of both the House and the first deposit and consequently for making the Senate have held hearings; numerous bills have overall return process more efficient. been introduced in the last two Congresses; and This difference in incentives has resulted in a several states, beginning with New York and return process that differs markedly from the California, have passed laws restricting the abili- collection process. In fact, the process of returnty of state-chartered institutions to delay avail- ing an unpaid check from the drawee to the ability to their depositors. institution of first deposit can fairly be described The delayed availability problem arises from as the reverse of the efficient forward collection the nature of the check collection system—a process. Instead of machine-readable characters, system that requires that a paper check be there are endorsement stamps that not only are moved from the payee to the institution on which not readable by machine, but are often difficult to it is drawn for payment to be made. Approxi- read manually or are even illegible. Instead of mately 75 percent of the approximately 40 billion computer processing, there is manual sorting, checks that are written each year must be trans- and instead of dedicated transportation facilities, ported from the institution of first deposit to the there is widespread use of U.S. mail and other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

938 Federal Reserve Bulletin • December 1985 common carriers. As a result, the average return private sector groups to seek better solutions to takes approximately three times as long as the the problem of the return item. Four Reserve average forward transit—5.2 calendar days for Banks are participating in a pilot program to return as opposed to 1.6 days for forward collec- experiment with check truncation in which the tion. Further, a significant minority of checks, 15 necessary information from a check is extracted percent, requires 10 or more calendar days to and converted to electronic form. The Federal complete the round trip from the institution of Reserve is also working with a banking industry first deposit to the payor and back again. group to develop a test of an automated return Since the institution of first deposit does not process in which the return item will be placed in know the final disposition of a check after it a carrier envelope that is encoded with the sends it to the next institution in the collection routing number of the institution of first deposit chain unless it is returned unpaid, the institution and the dollar amount. The envelope with the of first deposit incurs some risk if it allows its unpaid check would then be placed in the forcustomer to withdraw the check's proceeds be- ward collection stream, taking advantage of all of fore allowing sufficient time for the check to be its efficiencies. returned. This is true even though less than 1 Each of these proposals has certain advanpercent of all checks collected are ever returned tages and disadvantages. One disadvantage of unpaid. efforts undertaken by the Federal Reserve is that This analysis has led many, including the Fed- they reach only checks that are collected through eral Reserve, to place primary emphasis on seek- the Federal Reserve System. The remaining ing a solution to the delayed availability problem checks that are not collected through the Federal on expediting the return item process. By reduc- Reserve will not necessarily benefit from these ing the duration of the collection cycle, the time improvements. Unless the Federal Reserve has that a depository institution is at risk is also the authority to create incentives or require reduced as is the perceived need to place holds payor institutions to take the necessary steps to on checks. We at the Federal Reserve, who have expedite the return process, these checks will been charged by the Congress with maintaining continue to be returned by the old manual proan efficient payments mechanism, have taken a cessing methods. number of concrete steps to improve the return Besides implementing these techniques, other process and to enable depository institutions to improvements in the delayed availability situaprovide more prompt availability. Recently, the tion can be made. One major step would be for Board approved an amendment to regulations all institutions to provide full disclosure to their governing Federal Reserve check collection customers of their availability policies. Several services that requires the payor institution to studies suggest that the largest single cause of the notify the institution of first deposit directly that problems that depositors experience in this area it has returned a large-dollar check that it has is ignorance of hold policies—of their existence received unpaid from the Federal Reserve. This and of how they affect individual checks. In amendment, which took effect last week, will addition, depositors are generally unaware of provide the institution of first deposit with infor- payment alternatives, such as wire transfers, mation about a check that is being returned much that, although more costly then checks, can sooner than could be the case if it had to wait for provide payees with immediately available funds the check to be returned. This change should when used by payors. make a significant improvement to the payments Another step that can alleviate the availability mechanism. problem is for institutions to conduct a more We have testified before about the return item careful evaluation of their hold policies and their pilot that is being run by the Federal Reserve customers' credit positions. Such evaluations Bank of Dallas. This pilot has had some success would avoid the imposition of holds on checks in moving checks directly from the payor institu- when there is little risk of nonpayment or on tion to the institution of first deposit, bypassing accounts in which experience shows that little the intermediary depository institutions. risk is involved. For example, government The Federal Reserve is also working with checks and cashiers' checks deposited by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 939 payee into an established account pose little risk Despite the voluntary efforts, surveys of conof nonpayment. Long-standing customers who sumer experience with problems of delayed have not abused their accounts are likely to be availability taken on behalf of the Federal Regood for the funds even if a check is returned, serve by the University of Michigan's Survey and customers with overdraft protection or other Research Center have not shown any significant credit lines have already been evaluated by their decline in the percentage of families reporting institutions and found to be creditworthy. Hold problems. In fact, the 1985 survey showed a policies should be revised to avoid delays in slight increase over the 1983 survey in the peravailability when the risk to the institution of first centage of families reporting problems of delayed deposit is small. availability. Voluntary efforts do not appear to The Federal Reserve has urged that the de- be providing a rapid solution to this problem. layed availability problem should be resolved A number of legislative proposals have been through the voluntary efforts of depository insti- made, incorporating disclosures, payments systutions. In the policy statement that we issued tem improvements, and availability schedules. jointly in March 1984, with the Comptroller of Some of these proposals are based on past expethe Currency, the Federal Deposit Insurance rience with state legislation. A preliminary re- Corporation, and the Federal Home Loan Bank view of the experience of states with such legisla- Board, we stated that "voluntary industry action tion indicates that some of the approaches that represents a potential solution to many of the states have taken to the delayed availability problems caused by delayed availability, without problem may be successful if adopted on the the costs and burdens of a legislative or regula- national level. tory approach." The agencies strongly encour- There are three principal approaches to the aged institutions to review their hold policies, problem of improving deposit availability that reducing delay periods to the extent possible; can be derived from the state and proposed disclose their policies to depositors in an effec- federal legislation. These approaches involve tive manner; and refrain from imposing unneces- disclosure requirements, improvements in the sary delays on all checks. payments system, and mandatory availability While some progress has been made, especial- schedules. I will address each of these approachly in increasing consumer awareness, much re- es in turn. mains to be done, not only in the area of consum- 1. Disclosures. Mandatory disclosure requireer awareness, but also in actually providing ments could ensure that depositors are aware of better availability to depositors. their institutions' hold policies, minimizing the We have surveyed many of the industry incidence of checks drawn on uncollected funds groups with which I had previously met to dis- with all of the problems that result from such cuss voluntary efforts to resolve the problem of overdrafts. Such disclosure should not, and need delayed availability. Several of these groups not, be complex or burdensome, and could also have followed through by encouraging their provide for ready comparison of the policies of members to make disclosure and to review their competing institutions. Thus, disclosures can delay policies. They report that feedback from create competitive pressures to reduce hold peritheir members indicates improvements in disclo- ods. sure of availability policies. The Federal Re- 2. Improvements to the Return Item Process. serve, through its examination of state member The Board would be assisted in meeting its banks, is attempting to develop more concrete commitment to work with depository institutions evidence of the effects of the March 1984 policy to increase the efficiency of the return item statement. The preliminary results of this effort process by the Congress providing for the followsuggest that blanket holds are only imposed by a ing: (1) authority for the Federal Reserve to small minority of depository institutions and extend the notification requirement for largeconfirm that consumers are receiving disclosures dollar returns to items collected outside the as to delayed availability policies either at the Federal Reserve; (2) adoption of "direct return" time they open the account or at the time that the provisions that would allow payor institutions to hold is imposed. return checks through channels other than the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 Federal Reserve Bulletin • December 1985 endorsement chain, together with authorization counts) the institutions can only avail themselves for payor institutions to obtain immediate pay- of these exceptions through procedures that ment for the checks they return direct; and (3) could well increase the regulatory burden of authority for the Federal Reserve to require administering deposit accounts. payor institutions to complete returns within We are also concerned that mandatory availcertain time frames. With these goals we can ability schedules will become the industry stanexpedite the return process and reduce its overall dard and that those institutions that have better costs, thus reducing risk and providing the foun- availability will adopt the specified schedule. In dation for more rapid availability to customers. most instances, institutions have given prompt I would like to stress, however, that the im- availability or have decided not to impose holds provements to the return item process that are on depositors that have established good recfeasible in the forseeable future will not be ords. If depository institutions respond to mansufficient to improve clearing times to the point datory schedules by limiting availability in this of providing for return of the majority of checks fashion, the net benefit to the aggregate of deposwithin the goals established by some of the itors will be minimal. legislation that has been introduced. Most of the Unlike disclosures and improvements to the bills that the Congress is considering establish an payments system, which require uniformity from ultimate goal of availability within a maximum of state to state to be effective, the most egregious three business days. The collection cycle cannot delays in availability that mandatory schedules be reduced to three business days without a are designed to correct may be a localized probwholesale transition from traditional check col- lem that can be dealt with at the state level. lection procedures to electronic collection. Several states have already taken the initiative to Nevertheless, improvements in the return adopt such schedules. In view of potential local process are still desirable because they can in- variations in this problem, state action may well crease the efficiency and reduce the costs of the be the most appropriate vehicle for addressing return process, and because quicker collection mandatory availability schedules. and return will reduce the risks to institutions The considerations favoring and opposing that give some or all of their customers availabil- such schedules are reflected in differing views ity before the completion of the collection cycle. among the Board members. However, on bal- 3. Mandatory availability schedules. The ance, a majority of the Board is opposed or Board has given careful attention to the provi- reluctant to favor the imposition of such schedsions on mandatory availability schedules that ules. are included in most of the bills that the Congress If, however, the Congress chooses to adopt is now considering. This analysis has identified such schedules, the Board strongly urges that it some significant adverse consequences of these be provided the flexibility to establish the schedschedules in terms of risk to depository institu- ules after consideration of all relevant factors tions and regulatory burden that must be bal- and that it be provided the flexibility to establish anced against the benefits that they are likely to necessary exceptions to the schedules. provide to the institutions' customers. Standard- I would like to add one final, general point. ized availability schedules increase the risk to Any availability schedule adopted should not be the institution from the return of checks after the tied to improvements to the payments mechamandated hold period has expired. On the other nism. As I have pointed out already, any payhand, schedules tailored to accommodate fully ment system that relies on paper instruments that the return process, while minimizing the risk to must be transported from one place to another the institution of first deposit, also minimize the will not be efficient enough to satisfy the desire benefit, in terms of prompt availability, to the for maximum collection and return times of only institutions' customers. a few business days. Such schedules are not While depository institutions' risks may be possible without abandoning the traditional colmitigated by appropriate exceptions to the lection process and converting to electronic schedules for certain classes of checks or ac- forms—an expensive process that requires a long counts (such as large-dollar checks or new ac- lead time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 941 To sum up, the Board is prepared to support the return item process. We would not, on balimproving deposit availability through new statu- ance, favor a statutory requirement for standard tory provisions on disclosure and on expediting availability schedules. • Statement by Emanuel Melichar, Senior Econo- income was boosted somewhat by Payment in mist, Economic Activity Section, Division of Kind (PIK) disbursements made early in the Research and Statistics, Board of Governors of year. the Federal Reserve System, before the Subcom- As farmland prices reacted to diminished prosmittee on Economic Stabilization of the Commit- pects for income growth and higher returns on tee on Banking, Finance and Urban Affairs, alternative investments, sizable real capital U.S. House of Representatives, October 23, losses have reversed part of the large capital 1985. gains of the 1970s. By early 1985, agricultural equity, in constant dollars, was reduced to only two-thirds of its level at the beginning of the FARM SECTOR FINANCIAL EXPERIENCE decade. The key aggregate returns provide an over- Severe financial problems have been concentrat- view of financial experience; and these sector ed among those farmers who were highly lever- totals and averages reveal, as I will discuss, the aged as the boom of the 1970s ended, usually roots of some of the diversity in the financial because they had expanded their operations. experience of farmers. However, many highly leveraged farmers are not Three key observations can be made. First, in financial trouble because they are operating although net income before interest payments profitably enough to service their debt, as will be has fluctuated considerably in recent years, its shown by a new analysis of the financial position general level has not changed much since the of commercial farm operators that I will present beginning of this decade. This indication implies in the next section of this report. First, however, that farmers with little or no debt generally have I will review briefly the experience of the aggre- seen their income maintained. However, their gate farm sector, which shows how present con- average rate of return has been relatively low. ditions evolved and which provides initial in- Second, net income after interest payments sights into the considerable diversity of financial has been averaging near zero in the 1980s, which experience among individual farmers. implies that farmers with average profitability In constant dollars, as shown in table 1, cash and average debt have been able to meet their flow before interest payments so far in the 1980s, interest charges from current earnings, whereas while down from boom peaks, has remained those with average profitability but heavier debt above the preboom (1970-71) level; in contrast, have seen their earnings fail to cover their debt cash flow after interest has been significantly service. lower.1 In 1984, cash flow was little changed Third, income in the 1980s has fallen far short from the average level that had been experienced of the expectations that were capitalized into so far in this decade. land prices during the preceding decade. Conse- Before interest payments, net income from quently, the huge real capital gains that had been assets in the 1980s has remained above the experienced in the 1970s have given way to huge preboom level; after interest payments, net in- capital losses. Thus, the rate of total return, come from equity has been negative. In 1984, net which includes both income and capital gains, has remained negative since 1980. But the swing in wealth has been mainly experienced by owner-operators of extensive acreage, rather than by 1. The attachments to this statement are available on tenant operators or by farmers whose operations request from Publications Services, Board of Governors of use relatively little land. the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 Federal Reserve Bulletin • December 1985 FINANCIAL POSITION OF INDIVIDUAL tion was operating profitably enough to stay out FARMERS of the stressed and the vulnerable classes. Seventy percent of commercial farm operators While presenting a generally deteriorating pic- were classified in good financial position. These ture, the aggregate data reveal some strengths as farmers owned 65 percent of the operator-owned well as weaknesses. But they do not address two assets of commercial farmers, and they owed 51 important questions: (1) What proportion of percent of the debt. farmers is in financial trouble, and (2) how much At the other pole of financial position, 10 of the debt does this group owe? percent of all commercial farmers were classified The foregoing review of aggregate relation- as vulnerable. This group owned 10 percent of ships has indicated, however, that several in- the operator-owned assets of commercial farmcome and balance sheet measures should be ers, and owed 23 percent of the total debt. considered jointly in assessing the financial position of individual farmers. The U.S. Department of Agriculture's (USDA's) newly improved an- LENDER DEBT BY FINANCIAL POSITION OF nual Farm Costs and Returns Survey is the only THEIR FARM BORROWERS national data base that provides the individual data on income, expenses, assets, and debt that The enhanced USDA survey also asked farmers are required for such an analysis. In a cooperato indicate their sources of debt. The data show tive effort with the Economic Research Service how debt to each of the following three major of USDA, we cross-classified these 1984 data for institutional sources: (1) the banks, (2) the Farm "commercial" farmers—those with sales of Credit System, and (3) the Farmers Home Ad- $40,000 or more in 1984—by return on assets, ministration was distributed by the financial poreturn on equity, amount of equity, and debtsition of the borrower. Bank loans were in slightasset ratio. Then, using this tabulation in conly weaker hands than were borrowings from the junction with other criteria, the farmers were Farm Credit System, while, as expected, the grouped into the following financial positions: Farmers Home Administration had the highest good, fair, stressed, and vulnerable. To be conproportion of loans to vulnerable farmers. Opersidered in a "good" financial position, a farmer ators classified as vulnerable owed 25 percent of was required to have a favorable combination of the debt held by banks, compared with 20 perreturns and equity cushion: with relatively heavy cent of the debt held by the Farm Credit System. debt and very high returns that appeared adequate to service it; or, with little or no debt and returns that were positive. At the other extreme, a farmer with a highly adverse combination of TRENDS IN FARM DEBT returns and equity cushion was classified as "vulnerable." Since 1980, when a large gap opened between Very generally, most farmers that are classi- farm-loan interest rates and the typical yield fied as "vulnerable" are probably in financial produced by farm assets, indebted farmers have trouble now, while most of those farmers that are had a strong incentive to reduce debt, but for classified as "stressed" are probably headed for many farmers this adjustment was frustrated by such trouble over the next few years unless their adverse income and land-price developments. returns improve. The present returns of those Total farm debt finally peaked in summer 1983, classified in "fair" financial position also appear after having risen every year since 1945. The inadequate to sustain their equity or to service decline during the past two years totaled $4.4 fully their debt over the longer term, but the billion, or 2.0 percent. possibility of default appears to be fairly remote. The largest declines occurred at the Commod- The higher the operator's debt-asset ratio, the ity Credit Corporation (CCC), as it returned less likely that he was considered to be in good grain to farmers during the PIK program, and at financial position. Even among the heavily in- production credit associations. These declines debted operators, however, a substantial propor- were partially offset by expansion at the Farmers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 943 Home Administration and the commercial peak that was reached a year earlier. The decline banks. Loan growth at the Farmers Home Ad- was sharper at large banks at which farm-loan ministration had slowed markedly in 1982, as rates tend to follow more closely changes in the emergency lending programs initiated by previ- national prime rate. At smaller banks, where ous administrations expired, but picked up as farm-loan rates appear to reflect changes in the lending and forbearance policies were liberalized average internal cost of funds, rates fell about 2 in 1984. Bank lending was relatively strong from percentage points and in August still averaged 1982 through spring 1984 as farm-loan interest nearly 13 percent. Besides the lag resulting from rates at banks became highly competitive with the tendency toward average-cost pricing, farmthose charged by production credit associations, loan rates are probably being affected by the but that period ended with an unusually large desire to cover increased nonperforming loans pay down, 4.5 percent, of outstanding farm pro- and charge-offs. duction loans at banks during the fourth quarter of 1984. FARM-LOAN DELINQUENCIES AND CHARGE-OFFS AT ALL COMMERCIAL BANKS RECENT CHANGES IN FARM DEBT Delinquency rates on farm loans at banks have Farm production loans at banks rose 4.6 percent been trending upward. On June 30, past due and during the second quarter of 1985, a seasonal nonperforming farm production loans at all increase on the weak side of the normal range. banks, at 9.0 percent of such loans outstanding, This increase, however, contrasts sharply with were down seasonally from the annual peak in no rise at all in outstanding loans at production March but up substantially from 6.6 percent a credit associations. But lending by the Farmers year earlier. Much of the upward trend has Home Administration (FmHA) rose sharply, re- consisted of increases in the amount of farm flecting the administration's decision to accom- loans in nonaccrual status, which in June at all modate most loan demand from borrowers that banks amounted to 5.2 percent of farm produccould qualify under rather liberal terms. In the tion loans. This increase occurred in spite of the new fiscal year, in anticipation of continued high rising trend in farm-loan charge-offs. In the first loan demand, the FmHA has implemented new half of 1985, farm-loan charge-offs were running arrangements that were designed to allow more at about double last year's pace, which, for 1984 of the demands to be met expeditiously through as a whole, equaled about 2.2 percent of farm guarantees of loans made by banks and Produc- loans outstanding. tion Credit Associations (PCAs). Loan volume at the Commodity Credit Corporation fell seasonally during the second quarter, but is now rising TOTAL LOAN DELINQUENCY AND CHARGErapidly as farmers obtain price support loans for OFF RATES AT AGRICULTURAL BANKS relatively high proportions of their large crops. In earlier years during which farmers made large With farm-loan delinquency and charge-off rates use of CCC loans, they reduced their outstanding rising, total loan experience has been deterioratloans at banks and PCAs by more than the ing at banks that are heavily involved in farm average seasonal decline. lending. As evident from experience with both total loans and, when available, farm loans at the nation's 5,000 agricultural banks—those banks at FARM-LOAN INTEREST RATES AT which the ratio of farm loans to total loans now COMMERCIAL BANKS exceeds 17 percent—the lower delinquency rates on nonfarm loans at these banks have been The average interest rate on farm production helping to mitigate the adverse trend in the loans made at banks fell to 12.3 percent in the quality of their farm loans. In particular, recent Federal Reserve System's August survey, down nonaccrual and charge-off rates have been much about 2.5 percentage points frim the most recent higher on the farm portion of their loan portfolio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 Federal Reserve Bulletin • December 1985 Thus even the limited diversification of loans at will exert a significantly negative impact on their agricultural banks has helped their financial con- 1985 earnings. About one-fifth of all agricultural dition. banks charged off more than 1 percent of total The quality of loans at agricultural banks has loans during the first half of 1985, about double been deteriorating most rapidly in the Great the proportion that had experienced this level of Plains and the western Corn Belt; when data are charge-offs during the first half of the preceding shown for agricultural banks in Iowa as well as year. nationally, they illustrate the more adverse experience in this region. At Iowa agricultural banks, delinquency rates AGRICULTURAL BANK FAILURES on total loans have risen to levels somewhat above those at all agricultural banks nationally. More agricultural banks have been moving into A year earlier, the Iowa delinquency rates had vulnerable positions. Many of the agricultural been about equal to national averages at agricul- banks that have failed were earlier found among tural banks, and two years earlier they had been the banks at which delinquent loans exceeded slightly lower. total capital. The generally upward trend in the At all agricultural banks, net charge-offs of all number of agricultural banks in that potentially loans in the first half of 1985 averaged 0.72 vulnerable position suggests that failures of agripercent of outstanding loans, compared with 0.41 cultural banks may continue at recent higher percent in the first half of 1984. In five states levels. (Colorado, Iowa, Missouri, Nebraska, and Ore- Through October 21, agricultural banks acgon) charge-offs in the first half of 1985 exceeded counted for 57 percent of the failures of insured 1 percent of outstanding loans. commercial banks in 1985, and farm loans represented 19 percent of the total loans at all of the failed banks. Both proportions are considerably DISTRIBUTION OF AGRICULTURAL BANKS above those in earlier years. BY DELINQUENCY AND CHARGE-OFF RATES On average, the agricultural banks that have failed have been relatively small. Among those At a majority of agricultural banks, loan delin- that have failed in 1985, assets at the beginning of quency and charge-off rates are below the aver- the year averaged $22 million, compared with an age levels shown in the preceding section, as average of $31 million at all agricultural banks. these averages were affected by very high rates Farm loans exceeded $10 million at only 10 of the at a small number of banks. Most agricultural banks that have failed this year, and at only 2 of banks still have relatively low levels of nonper- the banks that have failed since June. Assets at forming loans. However, the proportion with a the 54 agricultural banks that have failed totaled very high level of such loans is rising. about $1.2 billion at the beginning of the year, or In similar fashion, a majority of agricultural only 39 percent of the total assets of about $3.0 banks charged off relatively few loans in the first billion at all 94 failed commercial banks. Assets half of this year. But a substantial and rising at all of the approximately 5,000 agricultural minority experienced relatively large losses that banks total about $150 billion. • Statement by Martha R. Seger, Member, Board Reserve Board on two legislative proposals that of Governors of the Federal Reserve System, would establish nationwide ceilings on credit before the Subcommittee on Consumer Affairs card interest rates. One of these bills, H.R. 1197, and Coinage of the Committee on Banking, would specify that the rate of interest on any Finance and Urban Affairs, U.S. House of Rep- credit card transaction could not be more than 5 resentatives, October 29, 1985. percentage points higher than the Federal Reserve discount rate. The other bill, H.R. 3408, I appreciate the opportunity to appear before the would limit the interest rate on credit card debt subcommittee to present the views of the Federal to 6 percentage points above the yield on three- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 945 month Treasury obligations; this plan would not ers that generally is associated with vigorous become effective if it were determined by the competition. This behavior has been apparent in Federal Reserve that prevailing loan rates re- the heavy volume of solicitations for new acflected the cost of funds to creditors and compe- counts—often directed to residents who live outtition for credit card accounts. side the market areas that are typical of most Both bills under review today would set float- retail deposit and credit services. In view of ing ceilings on credit card rates that would super- these indications of healthy competition, another sede generally less restrictive state-imposed lim- explanation must be found for the lack of associits. In the past, the Board has commented on ation between credit card rates and market intersimilar proposals from time to time. In doing so, est rates. it has endorsed the principle that consumer loans Implicit in the idea that variations in credit and other types of credit are most fairly and card finance rates should correspond closely to efficiently allocated when there are no regulatory changes in market rates is the premise that the constraints on interest rates. Indeed, the Board cost of funds is a dominant cost factor in providhas been concerned for some time about the ing credit card services. In fact, however, the adverse impact that rate ceilings can have on the cost of funds seems to be much less important in availability of funds in local credit markets. On credit card lending than in other types of credit. frequent occasions, it has stated its opposition to For credit card plans, the bulk of total costs is such artificial limits. composed of operating costs incurred for pro- Recently, a number of observers have noted cessing transactions, making monthly billings, that interest rates on bank credit card credit have and evaluating credit applications, along with edged up since the early 1980s even though costs associated with delinquent accounts and market rates, which represent funding costs, credit losses. These cost factors vary in ways have fallen substantially. Some commentators that usually differ from the pattern followed by have interpreted the resistance of credit card changes in market costs of funds. rates to downward pressure as an indication that The Federal Reserve System each year surthe market for credit card lending is not competi- veys a number of commercial banks to obtain tive—a premise that underlies both bills. Al- information about their costs of providing varithough the stickiness of rates might lead some ous services. From these average cost data, observers to conclude that competition is lack- published under the title Functional Cost Analying, other characteristics of the market suggest sis, the importance of financing costs and other that competition is intense. As my remarks will costs can be compared for credit card operations indicate, the Board believes that factors other and for other kinds of bank lending. During the than the level of competition explain the relative period 1974 through 1984, financing costs averstability of credit card interest rates. aged only about three-tenths of total expenses, A large number of suppliers in a market usual- before taxes, for the credit card function at ly is taken as a sign of competitive conditions. In participating medium- and large-sized banks that this respect, there is no doubt that many com- issue credit cards. By comparison, financing mercial banks, retail stores, and other firms costs at banks in the same size classes accounted currently offer credit cards of some kind to for more than three-quarters of total costs of the consumers. Moreover, what used to be known as commercial lending function, and for nearly "bank" credit cards are now issued by a growing nine-tenths of total costs of mortgage lending. number of credit unions, finance companies, Studies of credit card operations at retailers savings and loan associations, and others. Thus, likewise have shown that funding costs are less there are likely to be a number of competing important than operating and collection costs. bank and retail credit cards available in almost But an even more striking difference exists any market area. Under these conditions, it between credit card loans and other types of seems doubtful that a credit card issuer could lending. The key characteristic of revolving credmaintain a position of monopoly power. it plans is that the terms of repayment are quite Indeed, the marketing practices of credit card flexible and at the discretion of the account issuers suggest a zeal for obtaining new custom- holder. Excluding cash advances, which typical- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 Federal Reserve Bulletin • December 1985 ly earn finance charges from the transaction gage loans. Over the longer term, returns on date, most credit card plans charge interest only credit card plans have not been out of line with if card holders pay less than the full amount other types of lending; as indicated, margins billed during the period. Thus, unlike other kinds actually have been lower on average in the credit of credit, the way the credit card holder uses the card area. Thus, there must be reasons other account determines how much—and, indeed, than a lack of competition that explain why, of whether—interest revenue is earned from the late, credit card rates have not fallen much. account. Viewed in this longer perspective, the question Available evidence suggests that some credit of why credit card rates have not dropped during card holders—perhaps nearly 10 percent at any the recent period as sharply as other rates necesone time—do not use their credit cards at all. sarily poses the analogous question of why credit These nonusers produce no finance charge reve- card rates did not increase in previous years nue to offset costs of establishing and maintain- when other rates surged. Partly, as noted earlier, ing their accounts. Of card holders who use their the stability of credit card rates reflects the lesser credit cards, some surveys indicate that half of role of financing costs in the overall cost functhem usually pay off the entire balance when tion. It also reflects the impact of state-estabthey are billed. These customers also generate no lished statutory ceilings on interest rates. finance charge revenue to offset processing, fi- In all but a few states, 18 percent per year was nancing, and billing costs, although in the case of the upper limit on rates that card issuers could third-party credit cards, such as Mastercard and charge on credit card balances in the late 1970s Visa, the card issuer would derive some income when other rates were beginning to climb. Judgfrom the fees that merchants pay to help defray ing from the Functional Cost Analysis, average processing costs. returns to banks on credit card operations in These considerations strongly suggest that the most previous years had been no higher than net behavior of credit card rates cannot be properly earnings on other major forms of lending. Then, evaluated solely by comparing a credit card rate when market costs of funds rose sharply between with a market interest rate. Doing so would 1979 and 1981 while credit card rates were reoverlook the fundamental differences in the be- strained by the ceilings, marginal and even averhavior of costs and revenues between credit card age net returns on credit card receivables turned operations and other types of lending—namely, negative. that funding costs are a lower share of total costs The reduced attractiveness of credit card lendfor credit card lending, and that some credit card ing prompted several fundamental realignments borrowers pay little or no interest. A more by lenders, once it became clear that the adverse meaningful rate comparison requires a measure conditions were likely to persist. Some commerthat takes account of these differences. cial banks, for instance, relocated their credit One such measure is the net return after de- card operations to states, such as South Dakota, ducting the cost of funds and other expenses. where there were less restrictive rate ceilings or Again, the Functional Cost Analysis statistics for none at all. At the same time, many state legislarespondent banks provide some basis for com- tures acted to raise their rate ceilings or—as at parison among types of lending. Data for the least a dozen states have done—eliminate them period 1972 through 1984 suggest that—in con- altogether. Many credit card issuers during this trast to the higher gross finance rate on credit period of high market interest rates began chargcard indebtedness—average before-tax earnings ing annual fees on credit card accounts. And, have been substantially lower during most of the though precise measurement is difficult, many period in the case of credit card operations than diversified creditors such as banks tightened they were for commercial or mortgage lending. their lending standards and de-emphasized their These figures, of course, include periods of rela- credit card business in favor of other types of tively low or negative returns on credit card lending that seemed more profitable at the time. lending, such as in 1980, and periods such as last Some institutions stopped accepting any new year when the yield for the credit card function credit card accounts. exceeded that for commercial loans and mort- Now that market costs of funds have moved to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 947 lower levels, and credit card programs generally not lead to an immediate, widespread reduction have become profitable again, many credit card in rates. Credit card issuers may be uncertain issuers have greatly intensified their efforts to whether such favorable conditions will persist, market new credit card accounts and to encour- especially given the continuing large federal budage account usage. That is, credit card issuers in get deficits. Until actions are taken that curtail general have responded to falling financing costs the deficits and thereby reduce uncertainty about not by reducing rates, but mainly by increasing the likely future course of financing costs, many the availability of credit cards; this increased credit card issuers may remain reluctant to cut availability reversed the earlier curtailment of finance rates much, if at all, especially in view of such credit that card issuers undertook as market their experience with intense cost pressures in rates moved up, and many card issuers were previous years. Also, instead of offering lower unable to adjust revenues to match rising costs. finance rates, creditors may choose to compete Thus, it appears that much of the inertia in credit by easing credit standards somewhat or by makcard interest rates may be attributable to the ing nonrate credit terms more attractive. influence of restrictive rate ceilings imposed by In this connection, one should keep in mind the states. that finance rates on credit cards already have Of course, rate ceilings in the credit card shown some tendency to decline. One large bank market are considerably less pervasive than they announced in early October that it had cut its were before 1980. As mentioned, a number of finance rate; at the same time, it established states have raised or removed applicable rate separate fees for some types of services for ceilings, or have permitted lenders to charge which credit cards are used. Various issuers annual fees for credit card accounts. These have adopted floating finance rates of the general changes, besides the declines in the cost of kind that are proposed by the legislation under funds, may help explain the rise in the overall net your review. However, those adjustable rates return, before taxes, on credit card plans at often have been paired with annual fees. This respondent banks to about 3Vi percent in 1984. degree of diversity and experimentation may be So it may be that a growing number of credit card regarded as further evidence of active competiissuers now are in a position to consider offering tion. somewhat lower finance rates to credit card An effort to establish a federally mandated holders. ceiling on credit card interest rates can be ex- Factors on the demand side of the market may pected to encounter difficulties. From experihave contributed also to the observed stability of ence with the imposition of credit controls in credit card rates. As previously mentioned, a 1980 and the sharp, unexpected contraction in substantial proportion of card holders either use consumer spending that accompanied them, we their credit cards infrequently or usually pay off know that regulatory measures can have unpretheir bills in full; these holders are likely to be dictable and unwanted consequences. Setting a largely unconcerned about the level of finance federal ceiling rate of interest on credit card debt charges. below those rates that currently prevail in many Even card holders who "roll over" their bal- states would likely reduce the amount of credit ances and pay finance charges may often be that was made available. Moreover, such a currelatively insensitive to the rate of interest tailment would likely fall most heavily on less charged. Other features of credit card borrowing, affluent borrowers with relatively limited access such as convenience and suitability for small to other sources of credit. Based on recent levels transactions, may outweigh any rate disadvan- of three-month Treasury bill rates and on the tage. In any case, credit card debt has expanded Federal Reserve discount rate, the ceiling for rapidly during the past two years—a sign that credit card rates under either of the proposed consumers view credit card use as a desirable bills would be HV2 to W/2 percent, well below source of short-term financing despite what the finance rates that have been typical since many observers regard as high rates of interest. credit cards emerged in the early 1960s as a major method of consumer financing. Furthermore, the recent appearance of aboveaverage returns to bank credit card lending may Furthermore, imposition of stringent rate ceil- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 Federal Reserve Bulletin • December 1985 ings might be countered by adjustments in non- frequently are complex, and so may deviate from rate credit card terms such as increased annual other market rates, even those for instruments of fees, processing charges levied on each purchase comparable maturity. It would be wrong, in the or cash advance, and penalties for late payments Board's view, to employ a tool of monetary or for exceeding the authorized credit limit. policy for this use. Some card issuers also might begin applying the Another question at issue is whether any regureduced finance charges from the date of pur- lation of credit card interest rates is more approchase, when permitted, rather than after the priately a matter for federal or for state intervengrace period expires, and might seek to increase tion. The establishment of interest rate ceilings merchant discount fees. has long been a state prerogative, and one that Turning to the central provisions of the two the Board feels should not be preempted lightly. bills before the Congress, it should be empha- In recent years, virtually every state has resized that credit cards are issued by a broad viewed and overhauled its laws regulating convariety of retail merchants and financial institu- sumer interest rates. After studying the situation tions that differ both as to their sources of in their own jurisdictions, many of these states funding and their liability structures. Under have opted to raise or remove interest rate these circumstances, a single index rate would be ceilings for credit card borrowings. The Board is unlikely to mirror changes in either marginal or inclined to respect the collective judgment of a average costs for such a diverse array of card growing number of states that higher—not lowissuers. In any case, short-term rates, such as on er—ceilings are appropriate to the viability of the Treasury bills, fluctuate a good deal more widely credit card market, and to note that these states than costs of funds of most lenders. They do so retain the authority to lower the ceilings if conbecause a lender's overall average cost of funds vincing evidence of noncompetitive rate determiat any point is partly determined by previously nation appeared. issued liabilities, and because market rates on In closing, I would like to re-emphasize the longer-term liabilities—which make up part of Board's conviction that financial markets distribthe cost of funds—typically vary less than ute credit most efficiently and productively when shorter-term rates. interest rates are determined in markets that are If the Congress should nonetheless decide to as free from artificial restraints as possible. In enact legislation, the Federal Reserve strongly the credit card business, the balance of the recommends against designating the discount evidence suggests that reasonably competitive rate as an index for setting ceilings on credit card conditions exist, notwithstanding the lack of rates. The discount rate, as you know, is the variation in finance rates. Furthermore, recent interest rate charged by the Federal Reserve developments have reflected some tendency for Banks on extensions of short-term credit to credit card rates to decline. Efforts to constrain depository institutions. Because it typically ap- credit card rates through federal regulation are plies to very short-term loans, the discount rate likely to have undesirable side effects in the form is an inexact measure of either marginal or of reduced credit availability or less efficient average costs of loanable funds, which may means of recapturing credit costs. Accordingly, reflect borrowing at a wide range of maturities. the Board concludes that it would be inappropri- Furthermore, the discount rate is a tool of mone- ate to impose a federal ceiling on credit card tary policy. As such, it is an administered rate rates. • that reflects broad policy considerations that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

949 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON AUGUST 20, 1985 million below the average level earlier in the year when foreign cars were in short supply and Domestic Policy Directive financing incentive programs for domestic cars were prevalent. Sales slipped still further in early The information reviewed at this meeting sug- August to an annual rate of around 7 million gested that economic activity was probably ex- units, with some of the slowing perhaps attributpanding in the current quarter at a moderately able to the recent strike by auto-haulers. The faster pace than in the first half of the year. tentative settlement of that strike and the reintro- Broad measures of prices and wages continued duction of below-market-rate financing programs to indicate that inflation was running at about the pointed to a likely rebound in sales of domestisame pace as in 1984. cally produced autos. The index of industrial production rose 0.2 Total private housing starts fell slightly in July percent in July, about the same increase as in to an annual rate of 1.65 million units. The lower each of the preceding two months. Output of pace reflected a drop in starts of multifamily consumer goods was relatively strong, reflecting units, as starts of single-family structures edged gains in the production of automobiles and home higher. Other indicators suggested some pickup goods. Production of construction supplies and in construction activity in the near term: newly of materials also increased in July; but produc- issued permits for residential building remained tion of business equipment fell, and output of at a high level relative to starts, consumer attidefense and space equipment declined after sev- tudes toward buying houses were quite positive, eral months of extraordinarily rapid growth. Ca- and informal trade reports from homebuilders pacity utilization for total industry was 80.8 indicated heightened buyer interest and sales percent in July, unchanged since April and 1.2 activity. percentage points below its year-earlier level. Trends in business capital spending have been Total nonfarm payroll employment rose obscured lately by extreme volatility in monthly 240,000 in July, a little above the average month- data, but available information suggested further ly increase during the first half of the year. Job growth over the period ahead, though probably gains remained uneven across industries, as em- at a relatively modest pace, following the exployment in manufacturing declined slightly fur- traordinarily rapid growth earlier in the economther while employment in service-producing in- ic expansion. In June, the latest month for which dustries continued to account for the bulk of the data on business investment were available, new advance. The civilian unemployment rate re- orders and shipments of nondefense capital mained at 7.3 percent in July, unchanged since goods rebounded. On the other hand, outlays for February. nonresidential construction weakened. The nominal value of retail sales increased 0.4 The producer price index for finished goods percent in July after two months of decline. Sales rose 0.3 percent in July, after declining 0.2 of general merchandise recovered somewhat af- percent in June. The rise in July reflected in part ter falling in May and June, and sales of furniture a surge in prices of fresh vegetables that boosted and appliances rose at about the average pace of the index for finished foods 1.3 percent; other the preceding two months. In the automotive food prices generally declined, however, and sector, however, sales of domestic automobiles prices of crude foods fell in July for the seventh dropped to an annual rate of IV2 million units—1 consecutive month. The consumer price index Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 Federal Reserve Bulletin • December 1985 rose 0.2 percent in June, the same as in May. growth since midyear; it increased at an annual Food prices changed little over the two-month rate of about 9 percent in July and data for early period and consumer commodity prices de- August indicated the likelihood of stronger clined, but service prices continued to rise at a growth in the current month. Thus, its expansion comparatively rapid rate. Thus far in 1985, pro- appeared to be well above the Committee's exducer and consumer prices and the index of pectations for the June-to-September period. average hourly earnings had risen at rates close The strength in Ml reflected an acceleration in to those recorded in 1984. other checkable deposits while demand deposits, Since the Committee's meeting in July, the though increasing little on balance, remained at trade-weighted value of the dollar against major high levels as the extraordinary surge of late foreign currencies had fallen nearly 43A percent spring in such deposits showed no signs of unfurther, to a level about 17 percent below its peak winding. Expansion in the broader aggregates in late February. Most of the recent decline was slowed in July from the average pace over the in the early part of the intermeeting period ; since previous two months, to annual rates of about late July the dollar's value had declined only 8!/2 percent for M2 and AlA percent for M3. For slightly further on balance. The U.S. merchan- the period from the fourth quarter of 1984 dise trade deficit widened in the second quarter through July, growth in M2 was around the upper to a record annual rate of nearly $134 billion. end of its range for 1985, while the recent slug- Both agricultural and nonagricultural exports fell gish growth in M3 had brought its growth to substantially, while imports registered a small around the midpoint of its range. Expansion in increase. The rise in imports was attributable to a total domestic nonfinancial debt remained high substantial increase in the volume of oil imports relative to the Committee's monitoring range for after a sharp decline in the first quarter. the year. At its meeting on July 9-10, 1985, the Commit- Early in the intermeeting interval open market tee had adopted a directive that called for main- operations were directed at maintaining the extaining the existing degree of pressures on re- isting degree of pressures on reserves. By early serve positions, keeping in mind the possibility August, with Ml running well above the Comof some increase in those pressures if growth of mittee's expectations at the time of the July the monetary aggregates exceeded intentions. meeting, and with M2 also on the high side, That action was expected to be consistent with against the background of a weaker dollar and growth of both M2 and M3 at an annual rate of sustained economic activity, desk operations around IVi percent for the period from June to were conducted with a view toward more cau- September. Over the same period the expansion tious provision of reserves. The level of adjustof Ml was expected to slow substantially to an ment plus seasonal borrowing, which had been annual rate of 5 to 6 percent. The members artificially high around the time of the July agreed that somewhat lesser restraint on reserve meeting because of seasonal strains associated positions might be acceptable in the event of with the midyear statement date and July 4 growth in the monetary aggregates that was holiday period, averaged about $410 million in substantially slower than expected while some- the two-week maintenance period ending July 31 what greater restraint would be acceptable if and rose to $480 million in the first half of monetary growth were substantially faster. In August. either case, adjustments in the degree of reserve The weekly average federal funds rate was pressures would be considered against the back- generally in the TA to 77/s percent area during the ground of developments relating to the strength intermeeting interval, though average daily rates of the business expansion, progress against infla- ranged from about 73/8 percent to as high as 83/4 tion, and conditions in domestic credit and for- percent. Most other short-term interest rates eign exchange markets. The intermeeting range rose about 20 to 45 basis points over the interfor the federal funds rate was retained at 6 to 10 meeting interval, mainly reflecting a reassesspercent. ment by market participants of the outlook for Though slowing from the quite rapid May- the economy and for monetary policy. Yields on June pace, Ml had shown relatively strong intermediate- and long-term Treasury securities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 951 increased about 20 to 30 basis points, while economic developments would depend imporyields on corporate bonds generally rose some- tantly on international conditions, including the what more. The average contract rate on new economic performance of industrialized councommitments for fixed-rate conventional home tries, the ability and willingness of developing mortgage loans moved up slightly to around \2lA countries to manage their foreign debt problems, percent. the global energy situation, and the foreign ex- The staff projections presented at this meeting change value of the dollar. The members continsuggested that growth in real GNP would pick up ued to stress, as they had at previous meetings, somewhat in the second half of the year from the the strongly adverse impact that foreign competisluggish pace in the first half, and would continue tion, fostered by a high value of the dollar in at a modest pace through 1986. Although domes- foreign exchange markets, was having on overall tic final demand was projected to rise less rapidly domestic economic activity and in particular on than earlier this year, a larger share of the many manufacturing firms and on agriculture. increase was expected to be met out of domestic Some members commented that the prospects production rather than from imports or reduced for near-term improvement in the balance of inventory investment. The unemployment rate trade seemed to be relatively remote. was projected to edge down only slightly over While a further decline in the dollar would tend the forecast horizon and the rate of increase in with some lag to have a favorable impact on the prices was projected to remain close to that balance of trade, a sense of "free fall" in the experienced in recent years. dollar would represent a major threat to progress In the Committee's discussion of the economic toward price stability and to interest rates. In situation and outlook, the members focused on general, while a decline over time would not be various uncertainties and risks inherent in cur- disturbing, it was viewed as important to mainrent economic and financial conditions. They tain a certain confidence in the dollar, given the noted with some concern the absence of clear large net inflows of funds from abroad needed to evidence that business activity might be bridge the gap between the relatively limited strengthening, as they had expected earlier, fol- availability of domestic saving and the funds lowing sluggish growth during the first half of required to finance the federal budget deficit and 1985. Nonetheless, with domestic final demands private capital outlays. Without provision of remaining relatively buoyant, most of the mem- such funds relatively willingly from abroad, presbers agreed that some pickup in the rate of sures on domestic interest rates would be greater economic expansion continued to be a reason- than otherwise. The members agreed that the able expectation for the second half of the year. transition to a lower trade deficit and a more They recognized that various imbalances and sustainable pattern of international transactions financial strains in the economy constituted on- generally, presumably accompanied by a lower going threats to the economic expansion and dollar, would be greatly facilitated by substantial raised the danger that growth would be more progress in reducing future deficits in the federal sluggish than anticipated. Some members also budget and by the avoidance of protectionist observed that unexpected developments stem- legislation that could have a highly unfavorable ming from domestic or international financial effect on international trade, on the ability of problems or from other difficulties in specific developing countries to resolve their external sectors of the economy, if not contained, could debt problems, and on the overall performance interrupt the expansion itself. On the other hand, of the domestic economy. Several members nota few members remained relatively optimistic ed that the risks associated with the underlying about the prospective performance of the econo- distortions and problems in the domestic economy; it was also suggested that the rapid growth in my and the persisting strains in domestic and Ml in recent months might well lead with some international financial markets posed dilemmas lag to faster economic expansion than was cur- that were not amenable to a monetary policy rently anticipated. solution. Particular emphasis was given during the Com- As they had at earlier meetings, the members mittee's discussion to the prospect that domestic commented on the uneven pattern of develop- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 Federal Reserve Bulletin • December 1985 ments in various sectors of the economy. They behavior of Ml and the economy. Under the gave special emphasis to the problems in agricul- circumstances, a consensus emerged against ture but also cited other problem or lagging areas making a substantial change for the time being in of the economy. In most parts of the country, the degree of reserve restraint that had been however, strength in a number of industries such sought recently. The members recognized that as services and defense production currently the behavior of Ml was subject to unpredictable tended to outweigh the economic weaknesses. In fluctuations. Nonetheless, they continued to exthe construction area, one member called atten- pect that the expansion in Ml would moderate tion to recent indications of reduced nonresiden- appreciably over the months ahead, if something tial building activity and other members com- like the current degree of restraint on reserve mented that vacancy rates in office structures positions was maintained. were relatively high in several parts of the coun- In the course of the Committee's discussion, a try. On the other hand, there were reports of number of members emphasized the uncertaingrowing buyer interest in housing, although re- ties surrounding the behavior of Ml and the cent data on housing starts were weaker than downside risks they saw in the economy. Under expected. With regard to financial conditions, a prevailing circumstances, the surge in Ml growth number of members referred to various financial might not have the usual inflationary implicapractices and the buildup or incautious use of tions. The demand for assets in Ml appeared to debt that had rendered many borrowers and their have been influenced by the relatively low level lenders more vulnerable to economic adversity. of interest rates on market instruments and also In the case of consumers, rising debt burdens on small time certificates of deposit, and the together with the possibility of reduced income velocity of money seemed to be continuing to growth were viewed by at least some members as decline sharply. Moreover, there had been no likely to restrain expansion in consumer expendi- signs of increasing price pressures in aggregate tures. price indicators or in commodity markets. It was At its meeting in July the Committee had also argued that the objective of achieving Ml reviewed the basic policy objectives that it had growth within the Committee's long-run range established in February for growth of the mone- might receive somewhat reduced emphasis, at tary and credit aggregates in 1985 and had set least for a time, pending evaluation of further tentative objectives for expansion in 1986. For developments including the performance of the the period from the fourth quarter of 1984 to the broader aggregates. fourth quarter of 1985, the Committee had reaf- Other members expressed more concern that firmed the ranges for the broader aggregates set further Ml growth at rates substantially above in February of 6 to 9 percent for M2 and 6 to 9'/2 the Committee's long-run range would have inpercent for M3. The associated range for total flationary consequences over time. They noted domestic nonfinancial debt was also reaffirmed the persisting strength of Ml in recent weeks, at 9 to 12 percent for 1985. With respect to Ml, and should that continue, they felt that added the base was moved forward to the second reserve restraint would probably be desirable to quarter of 1985 and a range of 3 to 8 percent at an bring Ml closer to the upper end, or within, the annual growth rate was established for the period Committee's long-run range by the fourth quarto the fourth quarter of the year. For 1986 the ter. Continued strength in Ml could also raise Committee agreed on tentative monetary growth questions about the Committee's commitment to objectives that included reductions of 1 percent- an anti-inflationary policy, with potentially adage point in the upper end of the Ml range and Vi verse implications for inflationary expectations. percentage point in the upper end of the M3 Some members also commented that the rapid range. The provisional range for total domestic growth in Ml had already built up considerable nonfinancial debt was reduced by 1 percentage liquidity that would tend to sustain the expansion point for 1986. over the months ahead. In the Committee's discussion of policy imple- While there were shadings of opinion with mentation for the weeks immediately ahead, the regard to the appropriate degree of reserve presmembers took particular account of the disparate sure under the circumstances, on balance a ma- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 953 jority of the members indicated their acceptance that economic activity is probably expanding in the of a directive that called for maintaining the current quarter at a moderately faster rate than in the first half of the year. In July, industrial production slightly firmer degree of reserve restraint that continued to move somewhat higher and total retail had been sought in recent weeks. The members sales rose modestly after two months of decline. On expected such an approach to policy implemen- the other hand, housing starts fell somewhat in July. tation to be consistent with growth of M2 and M3 Information on business capital spending suggests at annual rates of around 8V2 and 6'/2 percent further growth, though at a much less rapid pace than earlier in the economic expansion. Total nonfarm respectively for the period from June to Septempayroll employment continued to increase in July, ber, not much changed from expectations at the although employment in manufacturing declined time of the July meeting. Growth in Ml was slightly further. The civilian unemployment rate reexpected to slow from its recent pace, but given mained at 7.3 percent in July, unchanged since Februthe rapid expansion since June, Ml was now ary. Broad measures of prices and wages appear to be rising at rates close to those recorded in 1984. anticipated to grow at an annual rate of about 8 to Since the Committee's meeting in July, the trade- 9 percent over the three-month period, considerweighted value of the dollar against major foreign ably above earlier expectations. Two members currencies has depreciated further. The merchandise argued for immediate adjustments in the degree trade deficit widened in the second quarter to the of reserve pressures—although in opposing di- highest rate on record. Both agricultural and nonagricultural exports fell substantially, while imports rections—based on their differing evaluations of registered a small increase. the significance of recent monetary growth for Based on data for July and early August, Ml has inflation and economic activity as against the been growing relatively rapidly. Demand deposits risks to sustained expansion stemming from the have shown little change on balance, but other checkfinancial vulnerabilities and the underlying im- able deposits have expanded substantially. Growth in balances in the economy. M2 has continued at around the upper end of its 1985 range, while relatively sluggish growth in M3 recently In keeping with the Committee's usual prachas brought this aggregate to the midpoint of its range. tice, the members contemplated the possible Expansion in total domestic nonfinancial debt has need for some intermeeting adjustment in the remained high relative to the Committee's monitoring degree of reserve restraint. They agreed that range for the year. Most interest rates have risen somewhat since the July meeting of the Committee. somewhat greater restraint on reserve positions The Federal Open Market Committee seeks to foswould be acceptable if growth in the monetary ter monetary and financial conditions that will help to aggregates were substantially faster than expect- reduce inflation further, promote growth in output on a ed, while somewhat lesser restraint would be sustainable basis, and contribute to an improved patacceptable if monetary growth were substantially tern of international transactions. In furtherance of these objectives the Committee at the July meeting slower. As in the past, any such adjustment reaffirmed ranges for the year of 6 to 9 percent for M2 should not be made automatically in response to and 6 to 9Vi percent for M3. The associated range for the behavior of the monetary aggregates alone, total domestic nonfinancial debt was reaffirmed at 9 to but should take broader economic and financial 12 percent. With respect to Ml, the base was moved developments into account, including conditions forward to the second quarter of 1985 and a range was established at an annual growth rate of 3 to 8 percent. in domestic and international financial markets. The range takes account of expectations of a return of For the period ahead, several members believed velocity growth toward more usual patterns, following that policy implementation should be especially the sharp decline in velocity during the first half of the alert to developments in the foreign exchange year, while also recognizing a higher degree of uncermarkets. The members agreed that the inter- tainty regarding that behavior. The appropriateness of the new range will continue to be reexamined in the meeting range for the federal funds rate, which light of evidence with respect to economic and finanprovides a mechanism for initiating consultation cial developments including developments in foreign of the Committee when its boundaries are persis- exchange markets. More generally, the Committee tently exceeded, should be left unchanged at 6 to agreed that growth in the aggregates may be in the upper parts of their ranges, depending on continuing 10 percent. developments with respect to velocity and provided At the conclusion of the meeting, the following that inflationary pressures remain subdued. domestic policy directive was issued to the Fed- For 1986 the Committee agreed on tentative ranges eral Reserve Bank of New York: of monetary growth, measured from the fourth quarter The information reviewed at this meeting suggests of 1985 to the fourth quarter of 1986, of 4 to 7 percent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 Federal Reserve Bulletin • December 1985 for Ml, 6 to 9 percent for M2, and 6 to 9 percent for before the next meeting is likely to be associated with M3. The associated range for growth in total domestic a federal funds rate persistently outside a range of 6 to nonfinancial debt was provisionally set at 8 to 11 10 percent. percent for 1986. With respect to Ml particularly, the Committee recognized that uncertainties surrounding Votes for this action: Messrs. Volcker, Corrigan, recent behavior of velocity would require careful Balles, Forrestal, Keehn, Martin, Partee, Rice, and reappraisal of the target range at the beginning of 1986. Wallich. Votes against this action: Mr. Black and Moreover, in establishing ranges for next year, the Ms. Seger. (Absent and not voting: Mr. Gramley.) Committee also recognized that account would need to be taken of experience with institutional and depositor Mr. Black dissented because he preferred to behavior in response to the completion of deposit rate direct open market operations promptly toward a deregulation early in the year. somewhat greater degree of reserve restraint and In the implementation of policy for the immediate thereby improve the prospects of moderating Ml future, the Committee seeks to maintain the degree of pressure on reserve positions sought in recent weeks. growth to within the Committee's range for the This action is expected to be consistent with growth in second half of the year. Ms. Seger dissented M2 and M3 at annual rates of around 8V2 and 6V2 because she favored some reduction in the depercent, respectively, during the period from June to gree of reserve restraint in light of the financial September. Ml growth is expected to slow from its vulnerability of some sectors of the economy and recent pace, but given the rapid growth in recent weeks, expansion over the June-to-September period in order to encourage sustained economic expanmay be at an 8 to 9 percent annual rate. Somewhat sion. greater restraint would be acceptable in the event of At a telephone consultation on September 23, substantially higher growth in the monetary aggrethe Committee discussed the possible implicagates. Somewhat lesser restraint would be acceptable tions for intervention in foreign exchange marin the event of substantially slower growth. In either case such a change would be considered in the context kets of the deliberations during the weekend of of appraisals of the strength of the business expansion, the Ministers of Finance and Central Bank Govdevelopments in foreign exchange markets, progress ernors of the G-5 countries. In the course of against inflation, and conditions in domestic and interdiscussion, it was indicated that the likely potennational credit markets. The Chairman may call for tial for U.S. sales of dollars and acquisitions of Committee consultation if it appears to the Manager for Domestic Operations that pursuit of the monetary foreign currencies over the near term fell generobjectives and related reserve paths during the period ally within existing Committee authorizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

955 Announcements POLICY ON SUPERVISION OF • The largest organizations and those with sig- STATE MEMBER BANKS AND nificant problems will be examined or inspected BANK HOLDING COMPANIES semiannually. • As an exception to the general rule, small The Federal Reserve Board announced on Octo- "shell" holding companies with no known probber 7, 1985, two policies to strengthen Reserve lems and low levels of debt relative to the book Bank supervision of state member banks and value of their subsidiary bank's stock are to be bank holding companies. inspected on a more limited basis. The policies generally increase the frequency The second policy strengthens and formalizes of Federal Reserve examinations of state mem- current practices for communicating the findings ber banks and inspections of bank holding com- of examinations and inspections to bank managepanies and strengthen the procedures for report- ment and boards of directors when significant ing deficiencies to bank management and boards problems exist. This policy provides for the of directors. following: The Board's action was taken in light of devel- • Establishes specific criteria for determining opments and trends within the banking system which examination findings require follow-up over the past several years. The policies are meetings with boards of directors and sets out aimed at two broad supervisory areas: (1) the guidelines for such meetings. early identification of problems in banking orga- • Requires that, in addition to providing a comnizations through more frequent and in-depth on- plete examination or inspection report to the site examinations; and (2) the correction of bank or bank holding company, a written sumweaknesses through more frequent and clearer mary of findings be sent to the bank or bank communications between bank supervisors and holding company for distribution to each direcboards of directors. tor. Also, the Board has identified the following • Requires that senior Reserve Bank officials areas in which steps to strengthen the superviso- become more involved in presenting examination ry process are being considered and where action findings to boards of directors. will be taken if appropriate and necessary: the The policies are effective immediately, with prevention of supervisory problems in banking initial implementation expected January 1, 1986. organizations through tightened prudential standards; improved coordination and cooperation with other federal and state banking depart- REVISED LIST OF OTC STOCKS SUBJECT TO ments; and strengthened examination staffs and MARGIN REGULATIONS improved examiner training programs. The first policy provides for a general increase The Federal Reserve Board has published a in the frequency of examinations of state mem- revised list of over-the-counter (OTC) stocks ber banks and inspection of bank holding compa- that are subject to its margin regulations, effecnies. In general the policy provides for the fol- tive November 12, 1985. lowing: The list includes all over-the-counter securities designated by the Board pursuant to its estab- • Bank organizations for which the Federal lished criteria as well as all securities qualified Reserve is primary supervisor will be examined for trading in the national market system (NMS). or inspected at least annually. This list includes all securities qualified for trad- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

956 Federal Reserve Bulletin • December 1985 ing in tier 1 of the NMS through November 12 requested public comment on the temporary and those in tier 2 through October 15, 1985. amendment by November 4, 1985. Additional OTC securities may be designated as NMS securities in the interim between the Board's quarterly publications and will be imme- BANK HOLDING COMPANY APPLICATION diately marginable. The next publication of the Board's list is scheduled for February 1986. The Federal Reserve Board has requested public This List of Marginable OTC Stocks super- comment by November 25, 1985, on an applicasedes the revised List of Marginable OTC Stocks tion by National Westminster Bank PLC, Lonthat was effective on August 13, 1985. Changes don, England, and its U.S. subsidiary, NatWest that have been made in the list, which now Holdings, Inc., New York, New York (collecincludes 2,520 OTC stocks, are as follows: 116 tively, "NatWest"), to engage through a wholly stocks have been included for the first time, 102 owned subsidiary in the following activities: (1) under NMS designation; 36 stocks previously on investment advisory services for "Institutional the list have been removed for substantially Customers;" and (2) securities brokerage serfailing to meet the requirements for continued vices and related securities credit activities for listing; 36 stocks have been removed for reasons these institutional customers.1 such as listing on a national securities exchange or involvement in an acquisition. In addition to NMS-designated securities, the CHANGE IN BOARD STAFF Board will continue to monitor the market activity of other OTC stocks to determine which The Board of Governors has announced the stocks meet the requirements for inclusion and resignation of Richard J. Manasseri, Assistant continued inclusion on the list. Director in the Division of Information Services, effective October 8, 1985. REGULATION J: TEMPORARY AMENDMENT SYSTEM MEMBERSHIP: The Federal Reserve Board announced on Octo- ADMISSION OF STATE BANKS ber 3, 1985, a temporary amendment to Regulation J (Collection of Checks and Other Items and The following banks were admitted to member- Wire Transfers of Funds) to provide for a uni- ship in the Federal Reserve System during the form holiday schedule that will apply to its new period October 1 through November 1, 1985: notice of nonpayment provision that went into effect on October 1. Colorado On February 8, the Board amended Regulation Denver Prudential Bank J to require that a paying bank provide notice Wheat Ridge International Bank that a check is being returned unpaid to the bank of Wheat Ridge of first deposit ("depository bank") by midnight Florida of the second banking day after the paying Ocala Merchants & Southern Bank bank's deadline for return of the check to its of Ocala Reserve Bank. Tampa Gulf Bay Bank Because of problems that arise due to different Georgia banking holiday schedules across the country— Roswell Sentry Bank & Trust Company for example, Saturdays are regarded as banking Minnesota days by many institutions—the Board has pro- Minneapolis Fidelity Bank Northeast vided, effective immediately, for a uniform holiday schedule consisting of 10 federal holidays 1. Institutional customers are defined by NatWest to include the following: companies or employee benefit plans and all Saturdays and Sundays. with $5 million in assets; individuals with net worth exceed- Before adoption of a final rule, the Board ing $5 million; and securities professionals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

957 Legal Developments AMENDMENT TO RULES REGARDING Holding Company Act (12 U.S.C. § 1841 et seq.) DELEGATION OF AUTHORITY ("Act"), has applied for the Board's approval under section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to The Board of Governors is amending 12 C.F.R. Part acquire Illinois National Bank and Trust Company of 265, its Rules Regarding Delegation of Authority, to Rockford, Rockford, Illinois ("Bank"). delegate to the Director of the Division of Banking Notice of the application, affording interested per- Supervision and Regulation authority to waive the sons an opportunity to submit comments, has been prior notice period on notices by U.S. banking organi- given in accordance with section 3(b) of the Act. The zations to establish foreign branches. time for filing comments has expired, and the Board Effective October 29, 1985, the Board hereby has considered the application and all comments reamends 12 C.F.R. Part 265 as follows: ceived in light of the factors set forth in section 3(c) of the Act. 1. The authority citation for Part 265 continues to read Applicant is the 19th largest banking organization in as follows: Illinois, with five subsidiary banks that control aggregate deposits of $544.2 million, representing 0.6 per- Authority: Sec. 11, 38 Stat. 261; 12 U.S.C. 248. cent of the total deposits in commercial banks in the 2. 12 C.F.R. Part 265 is amended by revising state.1 Bank is the 44th largest banking organization in § 265.2(c)(27) to read as follows: Illinois, controlling deposits of $237.2 million, representing 0.2 percent of the total deposits in commercial Section 265.2—Specific functions delegated to banks in the state. Upon consummation of the pro- Board employees and to Federal Reserve Banks posed acquisition, Applicant would become the tenth largest banking organization in Illinois, controlling 0.8 percent of the total deposits in commercial banks in (27) Under sections 25 and 25(a) of the Federal the state. Consummation of the proposed transaction Reserve Act and part 211 of this chapter (Regulation would not have a significant effect on the concentra- K), to waive the 45 days' prior notice period for tion of banking resources in Illinois. establishment of a branch by a U.S. banking organi- Both Applicant and Bank operate in the Rockford zation under section 211.3(a)(3) and for an invest- banking market.2 Applicant is the largest of 17 comment that qualifies for the prior notification proce- mercial banking organizations operating in the Rockdures set forth in section 211.5(c)(2) of Regulation K ford market, controlling two banks with deposits of (12 C.F.R. 211.3(a)(3) and 211.5(c)(2)). $395 million, representing 21.7 percent of the total deposits in commercial banks therein. Bank is the fourth largest banking organization in the market, ORDERS ISSUES UNDER BANK HOLDING controlling deposits of $237.2 million, representing 13 COMPANY ACT, BANK MERGER ACT, BANK percent of deposits in commercial banks in the market. SERVICE CORPORATION ACT, AND FEDERAL Upon consummation of this proposal Applicant would RESERVE ACT control 34.7 percent of the total deposits in commercial banks in the market. Orders Issued Under Section 3 of the Bank The Rockford banking market is not highly concen- Holding Company Act trated, with the four largest commercial banking orga- Americorp Financial, Inc. nizations controlling 70.2 percent of the total deposits Rockford, Illinois Order Approving Acquisition of a Bank 1. All banking data are as of December 31, 1984. 2. The Rockford banking market is approximated by Boone and Americorp Financial, Inc., Rockford, Illinois, a bank Winnebago Counties plus Marion, Scott, Byron, and Monroe townholding company within the meaning of the Bank ships in Ogle County, all in Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 Federal Reserve Bulletin • December 1985 in commercial banks in the market. The Herfindahl- Applicant appears capable of servicing its debt while Hirschman Index ("HHI") is 1438 and would increase maintaining adequate capital. by 564 points, to 2002 upon consummation of this Considerations relating to banking factors are conproposal, making this transaction one that would be sistent with approval of this proposal. Considerations subject to challenge under the Department of Justice relating to the convenience and needs of the communi- Merger Guidelines.3 ty to be served are consistent with approval. Although consummation of the proposal would elim- Based on the foregoing and other facts of record, the inate existing competition between Applicant and Board has determined that the proposed acquisition is Bank in the Rockford banking market, numerous other in the public interest and that the application should be commercial banking organizations would remain as approved. Accordingly, the application is approved competitors after consummation of the proposal. In for the reasons summarized above. The transaction addition, the Board has concluded that the effect of shall not be consummated before the thirtieth calendar this proposal on existing competition is mitigated by day following the effective date of this Order, or later the extent of competition offered by thrift institutions than three months after the effective date of this in the market.4 Nine thrift institutions in the market Order, unless such period is extended for good cause hold 29 percent of the total deposits in the market. by the Board or by the Federal Reserve Bank of These institutions compete with the commercial banks Chicago, pursuant to delegated authority. in the market for transaction accounts, consumer By order of the Board of Governors, effective loans and commercial loans. In view of these facts, the October 18, 1985. Board considers the presence of thrift institutions a significant factor in assessing the competitive effects Voting for this action: Vice Chairman Martin and Goverof this proposal.5 Accordingly, in view of the competi- nors Partee, Rice, and Seger. Absent and not voting: Chairtion provided by thrift institutions and the number and man Volcker and Governor Wallich. size of competitors remaining in the market, the Board concludes that consummation of the proposed acquisi- JAMES MCAFEE tion is not likely to have a significant adverse effect on [SEAL] Associate Secretary of the Board competition in the Rockford banking market. The financial and managerial resources of Applicant, its subsidiary banks and Bank are generally Cayman Investment Company (Delta) satisfactory and consistent with approval. Although George Town, Grand Cayman Applicant will incur debt as a result of this transaction, Delta South Bankcorp, Inc. Dover, Delaware 3. Under the revised Department of Justice Merger Guidelines (49 Federal Register 26,823 (June 29, 1984)), any market in which the Order Approving Formation of Holding Companies post-merger HHI is above 1800 is considered highly concentrated. In such markets, the Department is likely to challenge any merger that and the Establishment of Bank produces an increase in the HHI of more than 50 points unless other factors indicate that the merger will not substantially lessen competi- Cayman Investment Company (Delta), George Town, tion. If the increase in the HHI exceeds 100 points and the HHI substantially exceeds 1800, the Department has indicated that only in Grand Cayman ("Cayman Delta"), and Delta South extraordinary cases will other factors establish that the merger is not Bankcorp, Inc., Dover, Delaware ("South Banklikely substantially to lessen competition. Other factors include the post-merger HHI, the increase in the HHI, changing market condi- corp") (Cayman Delta and South Bankcorp, will be tions, the financial condition of the firm to be acquired, ease of entry, referred to as "Applicants"), have applied for the nature of the product, substitute products, similarities in firms that are Board's approval under section 3(a)(1) of the subject to the transaction, and increased efficiencies that may result from the transaction. Bank Holding Company Act ("BHC Act") (12 U.S.C. The Department has not advised the Board of any objection to this § 1842(a)(1)) to become bank holding companies transaction. through the acquisition of the voting shares of Delta 4. The Board has previously determined that thrift institutions have become, or at least have the potential to become, major competitors of National Bank and Trust Company of Florida, Miami, banks. NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225 Florida ("Bank"), a proposed de novo bank. (1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLETIN 934 (1983); Notice of the application, affording an opportunity Merchants Bancorp, Inc., 69 FEDERAL RESERVE BULLETIN 865 (1983); First Tennessee National Corporation, 69 FEDERAL RESERVE for interested persons to submit comments, has been BULLETIN 298 (1983). given in accordance with section 3(b) of the BHC Act. 5. If 50 percent of the deposits held by thrift institutions were included in the calculation of market concentration, Applicant would The time for filing comments has expired, and the control 17.5 percent of the total deposits in the market and Bank Board has considered the application and all comwould control 10.5 percent. Consummation of the proposal would ments received in light of the factors set forth in increase the HHI by 368 points, from 1018 to 1386, and the four-firm concentration ratio would be 64.4 percent. section 3(c) of the BHC Act (12 U.S.C. § 1842(c)). 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Legal Developments 959 Applicants, which are wholly owned by a foreign good cause by the Board or by the Federal Reserve individual, are nonoperating corporations recently or- Bank of Atlanta pursuant to delegated authority. ganized for the sole purpose of becoming bank holding By order of the Board of Governors, effective companies and establishing Bank.1 October 11, 1985. Bank would be located in the Miami-Fort Lauderdale, Florida banking market.2 Applicants' principal This action was taken pursuant to the Board's Rules controls Banco Real S.A., Sao Paulo, Brazil ("Banco Regarding Delegation of Authority (12 C.F.R. §§ 265.1a(c)) Real"), which operates a state-chartered agency in by a committee of Board members. Voting for this action: Vice Chairman Martin and Governors Partee and Rice. this market. Based on the limited deposit-taking and lending authority granted to state agencies in Florida, the fact that Bank is a de novo institution, and all the WILLIAM W. WILES other facts of record, the Board has concluded that [SEAL] Secretary of the Board consummation of the proposed transaction would not result in any adverse effects upon competition or increase the concentration of banking resources in any Cayman Investment Company (Omega) relevant area. Accordingly, competitive consider- George Town, Grand Cayman ations are consistent with approval. The financial and managerial resources and future Delta North Bankcorp, Inc. prospects of Applicants and Bank appear to be satis- Dover, Delaware factory. In this connection, Applicants currently have no debt and will not incur any debt as a result of the Order Approving Formation of Holding Companies establishment of Bank. Moreover, Applicants have and the Establishment of Bank committed to consent to the jurisdiction of the United States, to appoint an agent for service of process in the Cayman Investment Company (Omega), George United States, and to maintain adequate books and Town, Grand Cayman ("Cayman Omega"), and Delta records in the United States available to the Board on North Bankcorp, Inc., Dover, Delaware ("North request, together with any additional information that Bankcorp") (Cayman Omega and North Bankcorp will the Board may require concerning Applicants' busi- be referred to as "Applicants"), have applied for the ness and financial condition. Based on all the facts of Board's approval under section 3(a)(1) of the record, including the commitments made by Appli- Bank Holding Company Act ("BHC Act") (12 U.S.C. cants' principal, the Board has determined that the § 1842(a)(1)) to become bank holding companies considerations relating to banking factors are consis- through the acquisition of the voting shares of Delta tent with approval of the proposed acquisition. The National Bank and Trust Company of New York, Board has determined that considerations relating to New York, New York ("Bank"), a proposed the convenience and needs of the community to be de novo bank. served are also consistent with approval of this pro- Notice of the application, affording an opportunity posal. for interested persons to submit comments, has been On the basis of the record and commitments made given in accordance with section 3(b) of the BHC Act. by Applicants and their principal, and for the reasons The time for filing comments has expired, and the summarized above the application is approved. The Board has considered the application and all comacquisition shall not be made before the thirtieth ments received in light of the factors set forth in calendar day following the effective date of this Order, section 3(c) of the BHC Act (12 U.S.C. § 1842(c)). or later than three months after the effective date of Applicants, which are wholly owned by a foreign this Order, and Bank shall be opened for business not individual, are nonoperating corporations recently orlater than six months after the effective date of this ganized for the sole purpose of becoming bank holding Order. The latter two periods may be extended for companies and establishing Bank.1 Bank would be located in the Metropolitan New York banking mar- 1. Applicants' principal has also applied to establish a de novo bank in New York City. By order of even date, the Board has approved this application. Because of the common ownership by Applicants' princi- 1. Applicants' principal has also applied to establish a de novo bank pal of banks in Florida and New York, the banks have been deemed in Miami, Florida. By order of even date, the Board has approved this part of a chain banking organization for purposes of the Board's application. Because of the common ownership by Applicants' princianalysis of these applications. pal of banks in New York and Florida, the banks have been deemed 2. The Miami-Fort Lauderdale banking market is defined as Dade part of a chain banking organization for purposes of the Board's and Broward Counties, Florida. analysis of these applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 Federal Reserve Bulletin • December 1985 ket,2 in which it would be one of the smallest commer- This action was taken pursuant to the Board's Rules cial banking organizations. Applicants' principal con- Regarding Delegation of Authority (12 C.F.R. § 265.1a(c)) by trols Banco Real S.A., Sao Paulo, Brazil ("Banco a committee of Board members. Voting for this action: Vice Chairman Martin and Governors Partee and Rice. Real"), which also operates in the Metropolitan New York banking market through a state-chartered branch. Based on the fact that the state-chartered WILLIAM W. WILES branch of Banco Real controls less than one percent of [SEAL] Secretary of the Board the total deposits in commercial banks in the market, that Bank is as a de novo bank, and all of the other facts of record, the Board has concluded that consum- The Chase Manhattan Corporation mation of the proposed transaction would not result in New York, New York any significant adverse effects upon competition or increase the concentration of banking resources in any Order Approving Acquisition of Bank and Formation relevant area. Accordingly, competitive consider- of Bank Holding Company ations are consistent with approval. The financial and managerial resources and future The Chase Manhattan Corporation, New York, New prospects of Applicants and Bank appear to be satis- York, a bank holding company within the meaning of factory. In this connection, Applicants currently have the Bank Holding Company Act (the "BHC Act" or no debt and will not incur any debt as a result of the "Act"), has applied for the Board's approval under establishment of Bank. Moreover, Applicants have section 3 of the Act (12 U.S.C. § 1842) and under committed to consent to the jurisdiction of the United section 225.14 of the Board's Regulation Y (12 C.F.R. States, to appoint an agent for service of process in the § 225.14) to acquire control of all of the voting shares United States, and to maintain adequate books and of Chase Bank of Maryland ("Chase Bank-Maryrecords in the United States available to the Board on land"), a state-chartered commercial bank to be locatrequest, together with any additional information that ed in Maryland. the Board may require concerning Applicants' busi- Chase Bank-Maryland will be the successor by ness and financial condition. Based on all the facts of merger to three Maryland-chartered savings and loan record, including the commitments made by Appli- associations formerly privately insured by the Marycants' principal, the Board has determined that the land Savings-Share Insurance Corporation considerations relating to banking factors are consis- ("MSSIC"): Chesapeake Savings and Loan Associatent with approval of the proposed acquisition. The tion of Annapolis, Inc. ("Chesapeake"), Annapolis, Board has determined that considerations relating to Maryland; Merritt Commercial Savings & Loan Assothe convenience and needs of the community to be ciation ("Merritt"), Baltimore, Maryland; and Friendserved are also consistent with approval of this pro- ship Savings and Loan Association ("Friendship"), posal. Bethesda, Maryland. Bank will be held directly by On the basis of the record and commitments made Chase Manhattan National Holding Corporation by Applicants and their principal, and for the reasons ("Chase Holding"), a wholly-owned subsidiary of summarized above, the application is approved. The Applicant proposed to be formed in connection with acquisition shall not be made before the thirtieth this acquisition. calendar day following the effective date of this Order, Applicant proposes to acquire Chase Bank-Maryor later than three months after the effective date of land, a commercial bank to be chartered by the state of this Order, and Bank shall be opened for business not Maryland, pursuant to recently enacted emergency later than six months after the effective date of this legislation. Md. House Am. Emerg. Bill No. 1 (Octo- Order. The latter two periods may be extended for ber 25, 1985). Upon consummation of the acquisition, good cause by the Board or by the Federal Reserve Chase Bank-Maryland will operate approximately 13 Bank of New York pursuant to delegated authority. commercial bank branches within the state. By order of the Board of Governors, effective The establishment of Chase Bank-Maryland and its October 11, 1985. acquisition by Applicant is a significant component of the solution to the financial crisis in Maryland involving MSSIC-insured savings and loan associations that has now extended for over five months. As the Board 2. The Metropolitan New York banking market includes New York previously has noted,1 on May 9, 1985, there was a City; Nassau, Putnam, Rockland, Westchester, and western Suffolk Counties in New York State; the northeastern two-thirds of Bergen County and eastern Hudson County in New Jersey; and southwestern 1. See generally Baltimore Bancorp, 71 FEDERAL RESERVE BULLE- Fairfield County in Connecticut. TIN 901 (1985). 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Legal Developments 961 public announcement of "management problems" at cept for funds deposited after the commencement of Old Court Savings and Loan of Baltimore, one of the the conservatorship. largest savings and loan associations privately insured The write-off of these institutions' required capital by MSSIC, and that an investigation was being insti- contribution to MSSIC, and the write-down of these tuted. This announcement, and the publicity surround- institutions' assets on the basis of supervisory examiing private insurance generally and the activities of nations, would reduce their net worth below the levels several MSSIC institutions in particular, resulted in a required by all federal and state regulatory authorities severe liquidity crisis at several of these institutions. and would not be sufficient to allow the institutions to Within four days of the announcement, conservators operate independently on a full-service basis. Merritt had been appointed to manage the affairs of two and Friendship have, in fact, a negative net worth. MSSIC institutions, including Merritt, and the Gover- Moreover, the State of Maryland, through the nor of Maryland had imposed withdrawal limitations MDIFC, considered it necessary to provide $25 milof $1,000 per month on the remaining MSSIC-insured lion of assistance in the form of a capital contribution institutions, including Chesapeake and Friendship, the to Chase Holding as an inducement to Applicant to remaining components of the proposed Chase Bank- purchase these institutions, based on a determination Maryland. that this capital contribution is less than the amount On May 17, 1985, the Maryland General Assembly, MDIFC would incur as an insurance loss if Merritt meeting in emergency session, passed legislation were liquidated and if insurance claims were made. which, among other things, abolished MSSIC and On October 22, 1985, the Maryland legislature merged it into the state-funded Maryland Deposit passed the emergency legislation upon which the sub- Insurance Fund Corporation ("MDIFC") and re- ject application is predicated, in part to allow consumquired all institutions previously insured by MSSIC to mation of the transaction proposed in this application.2 apply for insurance from the Federal Savings and This legislation was signed by the Governor of the Loan Insurance Corporation ("FSLIC"). Institutions State of Maryland on October 25, 1985. Specifically, with assets over $40,000,000 were required to apply the Maryland law authorizes the Maryland Bank Comfor FSLIC insurance before June 1, 1985, in order to missioner to approve the organization and acquisition retain insurance coverage from MDIFC and were by a bank holding company located outside of Maryrequired to receive FSLIC insurance before Decem- land of a bank in Maryland that results from the ber 31, 1985. Otherwise, such institutions would face conversion of, or the assumption of all or a significant liquidation. portion of the deposit liabilities of, one or more As of October 17, 1985, 86 of the 101 Maryland savings and loan associations under certain specified S&Ls formerly insured by MSSIC were open on a full- conditions. The Maryland law further provides that service basis. Twenty-nine of these S&Ls, with com- such an acquisition of a bank by a non-Maryland bank bined assets of $4.6 billion, have received final approv- holding company is authorized by the laws of the State al for FSLIC insurance. Thirteen S&Ls, with assets of of Maryland for purposes of the Douglas Amendment $597.5 million, have received conditional FSLIC ap- to the BHC Act. proval. Forty-four institutions were open on a full- By letter dated October 23, 1985, the Maryland service basis without final or conditional FSLIC ap- Bank Commissioner requested that the Board approve proval. Fifteen institutions, including Merritt, this application and that the Board act immediately in Chesapeake, and Friendship (with combined assets of this matter under the emergency procedures of the $3 billion), remain subject to the Governor's executive BHC Act. The Commissioner advised the Board that order limiting withdrawals and are not open for full an emergency situation exists in the State of Maryland service. with respect to savings and loan associations formerly Two of the thrifts proposed to be acquired by insured by MSSIC. The Commissioner also has ad- Applicant, Chesapeake and Friendship, operated un- vised that (until the recently imposed freeze on withder these withdrawal limitations until October 17, drawals) the three institutions proposed to be acquired 1985, when the Governor of Maryland temporarily by Applicant as a group continued to experience froze deposits in these institutions during a pause in severe deposit outflows. Moreover, the Commissioner negotiations regarding this proposal. Prior to the has indicated that there is a substantial probability that freeze, and despite the account withdrawal limitations, none of the institutions would qualify for FSLIC these institutions (with combined assets of approxi- insurance. As indicated earlier, if these institutions did mately $342 million as of September 30, 1985) continued to experience substantial deposit outflows. Merritt, with $345 million in assets, remains in conser- 2. Md. House Am. Emerg. Bill No. 1, to be codified at, Md. Fin. vatorship: no deposit withdrawals are permitted ex- Inst. Code Ann. § 5-1101 et seq. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 Federal Reserve Bulletin • December 1985 not receive federal insurance by December 31, 1985, stances involved in the proposed acquisition of the they would be forced to liquidate by the terms of the three troubled thrift institutions. In addition, the Maryland General Assembly's May 17, 1985, emer- Board notes that the proposed acquisition has a gency legislation. de minimis impact on the capital and leverage position In view of these and other facts of record, the Board of Applicant. believes that an emergency exists that requires expedi- Consummation of Applicant's proposal will provide tious action under section 3(b) of the Act and sec- adequate capitalization and continuing financial suption 225.14(b)(2) of the Board's Regulation Y port to the successor to the thrift institutions involved (12 C.F.R. § 225.14(b)(2)). Accordingly, the Board has in the application. At consummation, Applicant will determined that it is appropriate in these cases to inject a total of $94.1 million in new capital into Chase shorten the period for interested persons to submit Bank-Maryland. Bank thereafter will have a level of comments regardings these applications. In this re- primary capital in excess of the minimum standards set gard, the Board promptly published notice of the forth in the Board's Capital Adequacy Guidelines, and applications in the Federal Register (50 Federal Regis- Applicant has committed to maintain at least this level ter 42,094 (1985)) and in newspapers of general circula- of capital. This will ensure that service provided by the tion within Maryland, providing for a period of public thrift institutions to the convenience and needs of their comment on the applications. The time for filing relevant communities will resume and that depositors comments has expired, and the Board has considered of these institutions will have immediate and full the section 3 applications and all comments received in access to their funds — access that has been denied for light of the factors set forth in section 3(c) of the Act, over five months. Accordingly, the Board concludes 12 U.S.C. § 1842(c). No hearing was requested in this that convenience and needs factors lend substantial case, and the Board has not received any comments weight to approval of this application. concerning the merits of the proposed acquisition. Applicant represents that the proposed transaction Applicant, with total assets of $87.8 billion, controls is the most feasible solution to permit Merritt, Chesafour bank subsidiaries, including The Chase Manhat- peake, and Friendship, as Chase Bank-Maryland, to tan Bank, N.A., New York, New York, the second resume full operations promptly and to allow their largest commercial banking organization in New York depositors immediate and full access to their funds at State.3 Applicant also engages in a variety of nonbank- least cost to the State of Maryland. The Board notes ing activities. that the proposed acquisition of these thrifts, particu- Chesapeake (assets of $85 million), Friendship (as- larly Merritt, involves very complex transactions that sets of $257.2 million), and Merritt (assets of $345 have been approved by the State of Maryland. The million) compete in separate banking markets. Appli- Board has also been advised that the financial affairs of cant currently operates no banking subsidiaries within Merritt, its affiliate companies and certain individuals Maryland. In view of the relatively small sizes of the associated with Merritt, are under investigation by institutions involved, the number of potential entrants appropriate state and federal law enforcement authoriinto the relevant markets, and the fact that Chase's ties. These investigations do not affect the financial bank subsidiaries operate in separate banking markets, viability of Chase Bank-Maryland. the Board finds that these acquisitions would not have On the basis of all of the above, including particularany significant adverse effect on existing or potential ly the compelling benefits of the proposal to the competition in any relevant market. depositors of these institutions and to the public, the The financial and managerial resources and future Board concludes that approval of the proposed transprospects of Applicant are satisfactory and consistent action would be in the public interest. with approval of this application. In consideration of Section 3(d) of the BHC Act prohibits a bank the commitment by Applicant to the continuing future holding company from acquiring a bank outside of the support of Chase Bank-Maryland, the financial and bank holding company's home state unless the statute managerial resources and future prospects of Bank are laws of the state where the target bank is located consistent with approval of the proposal. While the specifically authorize such an acquisition.4 Section 5- Board considers as an adverse factor any significant 1102(b) of the Financial Institutions Article of the dilution of capital or increase in leverage by a bank Maryland Code, effective today, provides specific holding company in connection with a proposed acquisition, the Board believes that any adverse effects of this proposal are mitigated by the special circum- 4. 12 U.S.C. § 1842(d). The home state of the acquiring holding company is defined for Douglas Amendment purposes as the state in which the operations of the bank holding company's bank subsidiaries were principally conducted on the later of July 1, 1966, or the date on 3. Financial data are as of September 30, 1985. which the company became a bank holding company. Id. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 963 statutory authorization for Chase's proposed acquisi- proved for the reasons summarized above. The transtion of Bank. Accordingly, the instant proposal would action shall not be consummated before the fifth not violate the Douglas Amendment to the Act.5 calendar day following the effective date of this Order Applicant has also applied for approval under sec- or later than three months after the effective date of tion 9 of the Federal Reserve Act, 12 U.S.C. § 321 this Order, unless such period is extended for good et seq., and section 208.4 of Regulation H, 12 C.F.R. cause by the Board, or by the Federal Reserve Bank of § 208.4, for Chase Bank-Maryland to become a mem- New York pursuant to delegated authority. ber of the Federal Reserve System upon consumma- By order of the Board of Governors, effective tion of these acquisitions. Bank appears to meet all the October 25, 1985. criteria for admission to membership, including capital requirements and considerations related to manage- Voting for this action: Chairman Volcker and Governors ment character and quality. Accordingly, Bank's Martin, Partee, Rice, and Seger. Absent and not voting: membership application is approved.6 Governor Wallich. In connection with Bank's membership application, Applicant's audits of the institutions to be acquired WILLIAM W. WILES have revealed assets (primarily real estate related [SEAL] Secretary of the Board assets) which are not eligible for ownership by a state member bank or a bank holding company. Applicant has requested a five-year period, with a provision for First Railroad & Banking Company of Georgia extensions totalling an additional five years, to divest Augusta, Georgia any nonconforming assets and has agreed to certain limits on the conduct of these activities during this Order Approving Acquisition of a Bank divestiture period. The Board is of the opinion, however, that it would not be appropriate or consistent First Railroad & Banking Company of Georgia, Auwith the conditions for membership in the Federal gusta, Georgia, a bank holding company within the Reserve System to authorize the retention of noncon- meaning of the Bank Holding Company Act forming assets for the length of time requested by (12 U.S.C. § 1841 etseq. ("Act")), has applied for the Applicant. Board's approval under section 3(a)(3) of the Act In view of the special circumstances of this case, (12 U.S.C. § 1842(a)(3)) to acquire Georgia State particularly the emergency nature of the acquisition, Bank, Martinez, Georgia ("Bank"). these institutions' extensive involvement in real es- Notice of the application, affording interested pertate, and the substantial public benefit in restoring sons an opportunity to submit comments, has been these institutions to viable operating condition, the given in accordance with section 3(b) of the Act. The Board believes it to be in the public interest to grant time for filing comments has expired, and the Board Applicant a two-year period to effect divestiture of the has considered the application and all comments renonconforming assets of Chase Bank-Maryland. ceived in light of the factors set forth in section 3(c) of Moreover, in view of the circumstances noted above, the Act. the Board would, in addition, be prepared to give Applicant is the fourth largest banking organization sympathetic consideration to any requests by Appli- in Georgia, with 16 subsidiary banks that control cant for extension of this two-year period for three aggregate deposits of $2.1 billion, representing 7.5 additional one-year periods. percent of the total deposits in commercial banks in On the basis of the record, the section 3 applications the state.1 Bank is one of the smaller banking organizato acquire control of Chase Bank-Maryland, and to tions in Georgia, controlling deposits of $41.0 million, form an intermediate bank holding company to hold representing approximately 0.2 percent of the total the voting shares of Chase Bank-Maryland, are ap- deposits in commercial banks in the state. Upon consummation of the proposed acquisition, Applicant would remain the fourth largest banking organization 5. In this regard, the Board has considered that the Maryland in Georgia, controlling 7.7 percent of the total deposits statute involved in this case is similar in effect to statutes in other in commercial banks in the state. Consummation of states that contain limited authorizations for acquisitions of depository institutions in those states by out-of-state bank holding compa- the proposed transaction would not have a significant nies in emergency situations. effect on the concentration of banking resources in 6. In view of the facts of record and at the request of the Maryland Georgia. Bank Commissioner, the Board has determined that an emergency exists requiring expeditious action on the membership application. Accordingly, the Board hereby waives the notice and other procedural requirements for membership under the provisions of section 262.3(0 of the Board's Rules of Procedure. (12 C.F.R.§ 262.3(0). 1. All banking data are as of December 31, 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 Federal Reserve Bulletin • December 1985 Both Applicant and Bank operate in the Augusta, institutions in the market. One of the thrift institutions, Georgia banking market.2 Applicant is the largest of 11 Bankers First Federal Savings and Loan Association, commercial banking organizations operating in the Augusta, Georgia ("Bankers First"), is the second market, controlling deposits of $448.9 million, repre- largest depository institution in the market with depossenting 39.9 percent of the total deposits in commer- its of $353.1 million. The fourth and sixth largest cial banks therein. Bank is the seventh largest banking depository institutions in the market are also thrifts. organization in the market, controlling deposits of Thrift institutions actively compete with commercial $41.0 million, representing 3.6 percent of the total banks in the market. These thrifts offer transaction deposits in commercial banks in the market. Upon accounts, and have been making consumer loans since consummation of this proposal Applicant would con- 1982. The record indicates that, as of June 1984, trol 43.5 percent of the total deposits in commercial approximately 15 percent of the market's consumer banks in the market. loans were made by thrifts. In addition, two of the The share of deposits held by the four largest thrifts compete for commercial loans in the market. commercial banking organizations in the Augusta mar- One of these thrifts, Bankers First, has embarked on a ket is 78.6 percent and would increase to 82.3 percent program to triple the size of its commercial loan upon consummation of this proposal. On a banks only portfolio. In view of these facts, the Board considers basis, the Herfindahl-Hirschman Index ("HHI") is the presence of thrift institutions a significant factor in 2220 and would increase by 287 points, to 2507 upon assessing the competitive effects of this proposal.5 consummation of this proposal, making this transac- Accordingly, in view of the competition provided by tion one that would be subject to challenge under the thrift institutions, and the number and size of competi- Department of Justice Merger Guidelines.3 tors remaining in the market, the Board concludes that consummation of the proposed acquisition is not likely Although consummation of the proposal would elimto have a significant adverse effect on competition in inate existing competition between Applicant and the Augusta banking market. Bank in the Augusta banking market, numerous other commercial banking organizations would remain as The financial and managerial resources of Applicompetitors after consummation of the proposal. In cant, its subsidiary banks, and Bank are generally addition, the Board has concluded that the effect of satisfactory and consistent with approval. Considerthis proposal on existing competition is mitigated by ations relating to the convenience and needs of the the extent of competition offered by thrift institutions community to be served are also consistent with in the market.4 Five thrift institutions in the market approval. hold 40.1 percent of the total deposits in depository Based on the foregoing and other facts of record, the Board has determined that the proposed acquisition is in the public interest and that the application should 2. The Augusta banking market is approximated by Richmond and be, and hereby is, approved. The transaction shall not Columbia Counties in Georgia and Aiken County, South Carolina. be consummated before the thirtieth calendar day 3. Under the revised Department of Justice Merger Guidelines (49 following the effective day of this Order, or later than Federal Register 26,823 (June 29, 1984)), any market in which the post-merger HHI is above 1800 is considered highly concentrated. In three months after the effective date of this Order, such markets, the Department is likely to challenge any merger that unless such period is extended for good cause by the produces an increase in the HHI of more than 50 points unless other factors indicate that the merger will not substantially lessen competi- Board or by the Federal Reserve Bank of Atlanta tion. If the increase in the HHI exceeds 100 points and the HHI pursuant to delegated authority. substantially exceeds 1800, the Department has indicated that only in By order of the Board of Governors, effective Octoextraordinary cases will other factors establish that the merger is not likely substantially to lessen competition. Other factors include the ber 22, 1985. post-merger HHI, the increase in the HHI, changing market conditions, the financial condition of the firm to be acquired, ease of entry, nature of the product, substitute products, similarities in firms that are This action was taken pursuant to the Board's Rules subject to the transaction and increased efficiencies that may result Regarding Delegation of Authority (12 C.F.R. § 265.1a(c)) by from the transaction. The Department has informed the Board that a a committee of Board members. Voting for this action: bank merger or acquisition generally will not be challenged (in the Governors Wallich, Partee, and Seger. absence of other factors indicating an anticompetitive effect) unless the merger increases the HHI by at least 200 points and the postmerger HHI is at least 1800. JAMES MCAFEE [SEAL] Associate Secretary of the Board The Department has not advised the Board of any objection to this transaction. 4. The Board has previously determined that thrift institutions have become, or at least have the potential to become, major competitors of 5. If 50 percent of the deposits held by thrift institutions were banks. NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225 included in the calculation of market concentration, Applicant would (1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLETIN 934 (1983); control 29.9 percent of the total deposits in the market and Bank Merchants Bancorp, Inc., 69 FEDERAL RESERVE BULLETIN 865 would control 2.7 percent. Consummation of the proposal would (1983); First Tennessee National Corporation, 69 FEDERAL RESERVE increase the HHI by 164 points to 1601, and would increase the four- BULLETIN 298 (1983). firm concentration ratio to 63.3 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 965 Great American Corporation The Board has indicated on previous occasions that Baton Rouge, Louisiana a bank holding company should serve as a source of financial and managerial strength to its subsidiary Order Approving the Acquisition of a Bank bank and that the Board will closely examine the condition of an applicant in each case with this consid- Great American Corporation, Baton Rouge, Louisi- eration in mind.4 The proposed transaction will ana, a bank holding company within the meaning of strengthen the condition of Bank through an injection the Bank Holding Company Act ("Act") (12 U.S.C. of capital. In addition, Applicant has proposed taking § 1841 et seq.), has applied for Board approval under certain steps to improve the operations and policies of section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to Bank. Based on these and all of the facts of record, the acquire the successor by merger to State Bank and Board believes the financial and managerial factors are Trust Company of Golden Meadow, Golden Meadow, consistent with approval. Louisiana ("Bank"). Considerations relating to the convenience and Notice of the application, affording opportunity for needs of the community to be served are also consisinterested persons to submit comments, has been tent with approval of this application. Accordingly, the given in accordance with section 3(b) of the Act. The Board finds the proposed acquisition would be in the time for filing comments has expired and the Board public interest. has considered the application and all comments re- On the basis of the record, the Board has deterceived in light of the factors set forth in section 3(c) of mined that the application should be and hereby is the Act (12 U.S.C. § 1842(c)). approved. The transaction shall not be consummated Applicant, a one-bank holding company that owns before the thirtieth calendar day following the effective American Bank and Trust Company, Baton Rouge, date of this Order, or later that three months after the Louisiana, has total assets of $730 million and is the effective date of this Order, unless such period is eighth largest banking organization in Louisiana, con- extended for good cause by the Board or the Federal trolling 1.9 percent of total deposits in commercial Reserve Bank of Atlanta, acting pursuant to delegated banking organizations in the state.1 Bank has total authority. assets of $65 million and ranks as the 93rd largest By order of the Board of Governors, effective commercial bank in the state, with less than 0.25 October 15, 1985. percent of deposits in commercial banking organizations statewide. Upon consummation of the proposed Voting for this action: Chairman Volcker and Governors transaction, Applicant would become the seventh larg- Martin, Partee, and Rice. Absent and not voting: Governors est commercial banking organization in Louisiana, Wallich and Seger. controlling approximately 2.15 percent of deposits in commercial banking organizations in the state. Thus, JAMES MCAFEE the proposed transaction would have no significant [SEAL] Associate Secretary of the Board effect on the concentration of banking resources in Louisiana. Applicant's only current bank subsidiary operates in Key Bancshares of West Virginia, Inc. the Baton Rouge, Louisiana, banking market.2 Bank is Huntington, West Virginia the fourth largest commercial banking organization in the Lafourche Parish, Louisiana, banking market3 and Order Approving Merger of Bank Holding controls approximately 11 percent of total deposits in Companies commercial banking organizations in that market. Consummation of the proposed transaction would not Key Bancshares of West Virginia, Inc., Huntington, eliminate existing competition in any relevant market. West Virginia, a bank holding company within the Based on all the facts of record, including the size of meaning of the Bank Holding Company Act of 1956, as Bank, the Board also concludes that consummation of amended ("Act") (12 U.S.C. § 1841 et seq.), has the proposed transaction would have no significant applied for the Board's approval under section 3(a)(5) effect on future competition in any relevant market. of the Act (12 U.S.C. §§ 1842(a)(5)) to merge with 1. All banking data are as of June 30, 1985. 2. The Baton Rouge, Louisiana, banking market is approximated 4. See State Bond and Mortgage Company, 71 FEDERAL RESERVE by the Baton Rouge SMSA, and includes the Parishes of East Baton BULLETIN 772 (1985); Singer & Associates, 70 FEDERAL RESERVE Rouge, West Baton Rouge, Ascension, and Livingston, Louisiana. BULLETIN 883 (1984); Central Minnesota Bancshares, Inc., 70 FED- 3. The Lafourche Parish banking market is approximated by La- ERAL RESERVE BULLETIN 877 (1984); Cambridge Financial Corporafourche Parish, Louisiana. tion, 69 FEDERAL RESERVE BULLETIN 7% (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 Federal Reserve Bulletin • December 1985 Centurion Bancorp Inc., Charleston, West Virginia acquisitions.3 In evaluating the effects of a proposal on ("Centurion"),1 and thereby indirectly to acquire Cen- probable future competition, the Board considers marturion's three subsidiary banks in West Virginia: ket concentration, the number of probable future Charleston National Bank, Charleston; Cardinal State entrants into the market, the size of the bank to be Bank, N.A., Beckley; and Citizens National Bank of acquired, and the attractiveness of the market for St. Albans, St. Albans. entry on a de novo or foothold basis absent approval of Notice of the application, affording an opportunity the acquisition. After consideration of these factors in for interested persons to submit comments, has been the context of the specific facts of this case, the Board given in accordance with section 3(b) of the Act. The has concluded that consummation of the proposed time for filing comments has expired, and the Board merger would not have a significant adverse effect on has considered the application and all comments re- probable future competition in any relevant market. ceived in light of the factors set forth in section 3(c) of Applicant's subsidiary banks operate in three bankthe Act. ing markets in which Centurion is not represented: the Applicant is the second largest commercial banking Huntington-Ashland Ranally Metropolitan Area marorganization in West Virginia. Its three subsidiary ket, the Boone County-Logan County market, and the banks hold total deposits of $450.9 million, represent- Mason County market. The record indicates that the ing approximately 4 percent of the total deposits in Huntington-Ashland market is unconcentrated, with commercial banks in West Virginia.2 Centurion, the the three largest commercial banks holding only 29.7 third largest commercial banking organization in West percent of the total deposits in the market. Applicant's Virginia, controls total deposits of $392.1 million, other two banking markets are not located in Metrorepresenting 3.5 percent of the total deposits in com- politan Statistical Areas. Thus, none of Applicant's mercial banks in the state. Upon consummation of the markets is subject to intensive analysis under the proposed merger, Applicant would become the largest Board's guidelines. On the basis of these and other banking organization in West Virginia and would con- facts of record, the Board concludes that elimination trol 7.5 percent of the total deposits in commercial of Centurion as a probable future entrant into the banks in the state. markets served by Applicant would not have a sub- The Board has carefully considered the effects of the stantial anticompetitive effect in any of those markets. proposal on statewide banking structure and on com- Centurion's subsidiary banks operate in two bankpetition in the relevant markets. This proposal in- ing markets in which Applicant is not represented, the volves the consolidation of two of the largest banking Charleston and the Raleigh County markets. The organizations in West Virginia. In terms of concentra- Charleston market, in which the three largest commertion of deposits in commercial banks, however, West cial banks hold 55.9 percent of total deposits, is not Virginia is, and would remain following the proposed highly concentrated. In the Raleigh County market, merger, one of the least concentrated states in the Centurion's bank subsidiary is not a market leader; United States. Following consummation, the ten larg- furthermore, the market is not located in a Metropoliest commercial banking organizations in West Virginia tan Statistical Area. On the basis of these considerwould control only 29 percent of the total deposits in ations and other facts of record, the Board concludes the state's commercial banks. Accordingly, it is the that elimination of Applicant as a probable future Board's view that the proposed merger would not have entrant into the markets served by Centurion would a significantly adverse effect on the concentration of not have a substantial anticompetitive effect in either banking resources in West Virginia. of those markets. Since Applicant's subsidiary banks do not operate in The financial and managerial resources and future the same markets as Centurion's subsidiary banks, prospects of Applicant, Centurion, and their subsidconsummation of the proposed merger would not have iary banks are considered consistent with approval of a significant adverse effect on existing competition in the application. Considerations relating to the conveany relevant market. The Board has also examined the nience and needs of the communities to be served also effects of the proposed merger on probable future are consistent with approval. competition in the relevant geographic markets in light Based on the foregoing and other facts of record, the of the Board's proposed guidelines for assessing the Board has determined that consummation of the procompetitive effects of market-extension mergers or posed merger would be in the public interest and that 1. Following consummation of the proposed merger, Applicant 3. 47 Federal Register 9017 (1982). While the proposed guidelines would change its name to Key Centurion Bancshares, Inc., and would have not been adopted by the Board, the Board is using the guidelines move its headquarters to Charleston. in its analysis of the effect of a proposal on probable future competi- 2. Banking data are as of December 31, 1984. tion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 967 the application should be approved. Accordingly, the smaller commercial banking organizations in Illinois, application is approved for the reasons summarized controlling total deposits of $45.0 million, representing above. The merger shall not be consummated before less than 0.1 percent of total deposits in commercial the thirtieth calendar day following the effective date banks in Illinois. Consummation of the transaction of this Order or later than three months after the would not have a significant adverse effect on the effective date of this Order, unless such period is concentration of banking resources in Illinois. extended for good cause by the Board or by the Bank operates in the Decatur banking market,2 Federal Reserve Bank of Richmond, acting pursuant where it is the 15th largest of 16 commercial banking to delegated authority. organizations, controlling 0.8 percent of total deposits By order of the Board of Governors, effective Octo- in commercial banks. Applicant has one subsidiary ber 24, 1985. bank in the Decatur banking market, Mt. Zion State Bank, Mt. Zion, Illinois ("State Bank"). State Bank is This action was taken pursuant to the Board's Rules the sixth largest commercial banking organization, Regarding Delegation of Authority (12 C.F.R. § 265.1a(c)) by with total deposits of $31.7 million, representing 3.6 a committee of Board members. Voting for this action: percent of total deposits in commercial banks in the Chairman Volcker and Governors Martin and Partee. market. Upon consummation of this proposal, Applicant would remain the sixth largest commercial banking organization, with total deposits of $39 million, JAMES MCAFEE [SEAL] Associate Secretary of the Board representing 4.4 percent of total deposits in commercial banks in the market. The Decatur banking market is moderately concen- Mt. Zion Bancorp, Inc. trated, with a four-firm concentration ratio of 73.3 Mt. Zion, Illinois percent and a Herfindahl-Hirschman Index ("HHI") of 1581.3 Upon consummation of this transaction, the Order Approving Acquisition of a Bank four-firm concentration ratio would remain unaffected and the HHI would increase by only 6 points to 1587. Mt. Zion Bancorp, Inc., Mt. Zion, Illinois, a bank The Board concludes that consummation of this transholding company within the meaning of the Bank action would not result in any significant adverse Holding Company Act of 1956, as amended ("Act") effects upon competition in the market.4 (12 U.S.C. § 1841 et seq.), has applied for the Board's The financial and managerial resources and future approval pursuant to section 3(a)(3) of the Act prospects of Applicant, its subsidiary banks, and Bank (12 U.S.C. § 1842(a)(3)) to acquire 70.4 percent or are consistent with approval.5 Applicant has proposed more of the voting shares of First National Bank of Mt. Zion, Mt. Zion, Illinois ("Bank"). 2. The Decatur banking market is defined as all of Macon County, Notice of the application, affording opportunity for Illinois, plus the township of Moweaqua in Shelby County, Illinois. interested persons to submit comments, has been 3. Under the revised Department of Justice Merger Guidelines (49 given in accordance with section 3(b) of the Act. The Federal Register 26,823 (1984)) a market in which the post-merger HHI is between 1000 and 1800 is considered moderately concentrated, time for filing comments has expired and the Board and the Department is likely to challenge a merger that increases the has considered the application and all comments re- HHI by more than 100 points, unless other facts of record indicate that the merger is not likely substantially to lessen competition. The ceived, including comments from three Protestants Department has informed the Board that a bank merger or acquisition and from the Office of the Comptroller of the Curren- generally will not be challenged (in the absence of other factors cy, in light of the factors set forth in section 3(c) of the indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by at least 200 points. Act (12 U.S.C. § 1842(c)). 4. Two Protestants allege that consummation of the transaction Applicant is one of the smaller commercial banking would result in a monopoly due to the fact that Applicant already organizations in Illinois, controlling two banks with owns State Bank, the only other commercial bank in Mt. Zion. Based upon the facts of record, however, the relevant geographic market for total deposits of $37.7 million, representing less than assessing the competitive effects of this transaction is the Decatur 0.1 percent of total deposits in commercial banks in banking market. As noted above, the Board concludes that this the state.1 Bank is one of the smaller commercial transaction would not result in any significant adverse competitive effects within this market. banks in Illinois, with total deposits of $7.3 million, 5. One of the Protestants claims that a conflict of interest may exist representing less than 0.1 percent of total deposits in because the Mt. Zion School District is a large depositor in State Bank and the President of State Bank is a member of the Mt. Zion School commercial banks in the state. Upon consummation of District Board. One Protestant also questioned Applicant's managethis proposal, Applicant would remain one of the ment, alleging that it had hired a former executive officer of Bank who, Protestant believed, may have been removed for improper management of Bank. The Board has investigated these allegations and has determined that they are not supported by any evidence in the 1. All banking data are as of December 31, 1984. record. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 Federal Reserve Bulletin • December 1985 no new services for Bank. However, there is no total deposits in commercial banks in the state.1 Comevidence in the record that the banking needs of the pany is the 22nd largest banking organization in New communities to be served are not being met. Accord- Mexico, controlling Bank with total deposits of $71.4 ingly, considerations relating to the convenience and million, representing 0.9 percent of total deposits in needs of the communities to be served are consistent commercial banks in the state. New Mexico's banking with approval. structure is relatively unconcentrated with the state's Based on the foregoing and other facts of record, the four largest banking organizations holding 51.5 percent Board has determined that approval of this application of the deposits in commercial banks in the state. Upon is in the public interest and that the application should consummation of the proposal, Applicant would bebe and hereby is approved. The transaction shall not come the third largest banking organization in New be consummated before the thirtieth calendar day Mexico, controlling twelve banks with total deposits following the effective date of this Order, or later than of $680.7 million, representing 9.0 percent of total three months after the effective date of this Order, deposits in the state, and the four-firm concentration unless such period is extended for good cause by the ratio would increase to 52.4 percent. The Board has Board or the Federal Reserve Bank of Chicago, acting concluded that consummation of the transaction pursuant to delegated authority. would not have a significant adverse effect on the By order of the Board of Governors, effective concentration of banking resources in New Mexico. October 24, 1985. Bank is the second largest of three commercial banking organizations in the the McKinley County This action was taken pursuant to the Board's Rules banking market,2 controlling 41.6 percent of total Regarding Delegation of Authority (12 C.F.R. § 265.1a(c)) by deposits in commercial banks. Applicant does not a committee of Board members. Voting for this action: operate in the McKinley County banking market, and Chairman Volcker and Governors Martin and Partee. principals of Applicant are not affiliated with any other banking organization in the market. Consummation of JAMES MCAFEE this proposal would not result in the elimination of [SEAL] Associate Secretary of the Board existing competition in the market. The Board has considered the effects of the proposal on probable future competition in light of its proposed guidelines for assessing the competitive effects of United New Mexico Financial Corporation market extension mergers and acquisitions, and the Albuquerque, New Mexico Board does not believe that consummation of this transaction would have any significant effects on prob- Order Approving Acquisition of a Bank Holding able future competition.3 Accordingly, the Board con- Company and Bank cludes that consummation of this transaction would not result in any adverse effects upon competition or United New Mexico Financial Corporation, Albuquer- significantly increase the concentration of banking que, New Mexico, a bank holding company within the resources in any relevant area. meaning of the Bank Holding Company Act of 1956, as The financial and managerial resources and future amended (the "Act") (12 U.S.C. § 1841 et seq.), has prospects of Applicant, Company, and Bank are conapplied for the Board's approval under section 3(a)(3) sistent with approval of this application. Applicant has of the Act (12 U.S.C. § 1842(a)(3)) to acquire all the indicated that it will expand the types of deposit voting shares of Gallup Bancshares, Inc., Gallup, New accounts available to Bank's customers, provide Mexico ("Company), and thereby indirectly to acquire Bank's customers with a full range of personal and First State Bank of Gallup, Gallup, New Mexico corporate trust services, and provide ATM services. ("Bank"). Notice of the application, affording an opportunity for interested persons to submit comments, has been given in accordance with section 3(b) of the Act. The 1 All deposit data are as of December 31, 1984. All banking structure data are as of June 30, 1985. time for filing comments has expired, and the Board 2. The McKinley County banking market is defined as McKinley has considered the application and all comments re- County, New Mexico. ceived in light of the factors set forth in section 3(c) of 3. "Policy Statement of the Board of Governors of the Federal Reserve System for Assessing Competitive Factors Under the Bank the Act (12 U.S.C. § 1842(c)). Merger Act and the Bank Holding Company Act," 47 Federal Applicant is the fourth largest banking organization Register 9017 (1982). While the proposed policy statement has not been approved by the Board, the Board is using the policy guidelines in New Mexico, controlling eleven banks with total as part of its analysis of the effect of a proposal on probable future deposits of $609.3 million, representing 8.1 percent of competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 969 Accordingly, considerations relating to the conve- Section 3(d) of the Act (12 U.S.C. § 1842(d)), the nience and needs of the community to be served are Douglas Amendment, prohibits the Board from apconsistent with approval of the proposal. proving an application by a bank holding company to Based on the foregoing and other facts of record, the acquire control of any bank located outside of the Board has determined that the application should be holding company's home state,2 unless such acquisiand hereby is approved. The transaction shall not be tion is "specifically authorized by the statute laws of consummated before the thirtieth calendar day follow- the State in which such bank is located, by language to ing the effective date of this Order, or later than three that effect and not merely by implication." The statute months after the effective date of this Order, unless laws of Nevada authorize the acquisition of a bank in such period is extended for good cause by the Board or Nevada by a financial institution located in another the Federal Reserve Bank of Dallas, acting pursuant to state in a defined western region.3 Such acquisitions delegated authority. are authorized if the laws of the acquiring institution's By order of the Board of Governors, effective home state permit Nevada bank holding companies to October 16, 1985. acquire banks or holding companies in that state "under terms and conditions which are substantially comparable to or less restrictive than" those imposed Voting for this action: Chairman Volcker and Governors Martin, Partee, and Rice. Absent and not voting: Governors under Nevada law.4 Wallich and Seger. Utah has enacted a similar reciprocal statute, which permits the acquisition of a Utah bank by a Nevada JAMES MCAFEE bank holding company.5 Based on its review of the [SEAL] Associate Secretary of the Board relevant Nevada and Utah statutes, the Board has determined that the Utah statute fulfills the reciprocity requirement of Nevada law and that Nevada has by Zions Utah Bancorporation statute expressly authorized a Utah bank holding Salt Lake City, Utah company, such as Applicant, to acquire a Nevada bank, such as Bank.6 Accordingly, the Board con- Order Approving Acquisition of a Bank cludes that approval of Applicant's proposal to acquire a bank in Nevada is not barred by the Douglas Zions Utah Bancorporation, Salt Lake City, Utah, a Amendment. bank holding company within the meaning of the Bank All of Bank's offices are located in the Las Vegas, Holding Company Act of 1956, as amended (12 U.S.C. Nevada, metropolitan banking market.7 Since Appli- § 1841 et seq.) ("Act"), has applied for the Board's cant's subsidiary bank does not operate in Nevada, approval under section 3(a)(3) of the Act (12 U.S.C. consummation of the proposed acquisition would have § 1842(a)(3)) to acquire 100 percent of the voting no effect on existing competition in any relevant shares of Nevada State Bank, Las Vegas, Nevada market. The Board has also examined the effect of ("Bank"). Applicant's acquisition of Bank on probable future Notice of the application, affording an opportunity competition in the relevant geographic markets in light for interested persons to submit comments, has been of the Board's proposed guidelines for assessing the given in accordance with section 3(b) of the Act. The competitive effect of market-extension mergers or time for filing comments has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the Act. 2. A bank holding company's home state is that state in which the Applicant is the second largest commercial banking operations of the bank holding company's banking subsidiaries were organization in Utah. Its one subsidiary bank controls principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. domestic deposits of approximately $1.5 billion, repre- 3. Nevada's interstate banking region includes Alaska, Arizona, senting 20.2 percent of the total deposits in commer- Colorado, Hawaii, Idaho, Montana, New Mexico, Oregon, Utah, cial banks in Utah.1 Bank is the fifth largest commer- Washington, and Wyoming. 4. 1985 Nev. Stat. Ch. 656, § 14. cial banking organization in Nevada with domestic 5. Utah Code Ann. §§ 7-1-102 et seq. deposits of approximately $157 million, representing 6. As required by Nevada law, the Administrator of the Financial 3.6 percent of the total deposits in commercial banks Institutions Division of Nevada has made a formal finding that the terms and conditions of the Utah statute are "substantially comparain Nevada. ble to or less restrictive than" those of the Nevada statute. The Administrator issued an order approving the proposed acquisition on October 9, 1985. 7. The Las Vegas metropolitan banking market is approximated by 1. Banking data are as of March 31, 1985. the Las Vegas Ranally Metropolitan Area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 Federal Reserve Bulletin • December 1985 acquisitions.8 In view of the existence of numerous Holding Company Act, 12 U.S.C. § 1841 et seq. other potential entrants from Utah and other states in ("BHC Act"), has applied pursuant to section 4(c)(8) Nevada's western interstate banking region into the of the Act (12 U.S.C. § 1843(c)(8)) and section market served by Bank, the Board has concluded that 225.23(a)(3) of the Board's Regulation Y (12 C.F.R. consummation of the proposed transaction would not § 225.23(a)(3)) to engage de novo indirectly through its have any significant adverse effects on probable future subsidiaries, Bankmont Financial Corp., New York, competition in any relevant market. New York ("Bankmont"), and Harris Bankcorp, Inc., The financial and managerial resources and future Chicago, Illinois ("Harris"), and through Harris' prospects of Applicant, its subsidiary bank, and Bank wholly-owned subsidiary, Harris Futures Corporaare consistent with approval of the application. Con- tion, also of Chicago ("HFC"), in the execution and siderations relating to the convenience and needs of clearance, on major commodity exchanges, of futures the communities to be served also are consistent with contracts on stock indexes and options thereon, and of approval of the application. futures contracts on a municipal bond index. Based on the foregoing and other facts of record, the Applicant proposes to execute and clear: the Bond Board has determined that the proposed acquisition Buyer Municipal Bond Index futures contract and the would be in the public interest and that the application Major Market Index futures contract, both currently should be approved. Accordingly, the application is traded on the Chicago Board of Trade ; the Standard & approved for the reasons summarized above. The Poor's 100 Stock Price Index futures contract, the acquisition of Bank shall not be consummated before Standard & Poor's 500 Stock Price Index futures the thirtieth calendar day following the effective date contract ("S&P 500"), and options on the S&P 500, all of this Order or later than three months after the of which are currently traded on the Index and Option effective date of this Order, unless such period is Division of the Chicago Mercantile Exchange; and the extended for good cause by the Board or by the FT-SE 100 Equity Index futures contract, currently Federal Reserve Bank of San Francisco, acting pursu- traded on the London International Financial Futures ant to delegated authority. Exchange. Applicant proposes to offer these services By order of the Board of Governors, effective to financial institutions, corporations, pension and October 10, 1985. endowment funds, mutual funds, insurance companies and other sophisticated customers. This action was taken pursuant to the Board's Rules Notice of the application, affording interested per- Regarding Delegation of Authority (12 C.F.R. § 265.1a(c)) by sons an opportunity to submit comments on the relaa committee of Board members. Voting for this action: Vice tion of the proposed activities to banking and on the Chairman Martin and Governors Partee and Rice. balance of public interest factors, has been duly pub- WILLIAM W. WILES lished (50 Federal Register 30,761 (1985)). The time for [SEAL] Secretary of the Board filing comments has expired, and the Board has considered the application and all comments received in light of the public interest factors set forth in section Orders Issued Under Section 4 of the Bank 4(c)(8) of the BHC Act. Holding Company Act Bank of Montreal, with total assets of approximately $55.4 billion,1 is the second largest bank in Canada. Bank of Montreal In the United States, Bank of Montreal owns all of the Quebec, Canada outstanding voting shares of Bankmont, Harris, and Harris' nonbanking subsidiaries. Bank of Montreal Order Approving Application to Execute and Clear also operates Harris Bank International Corporation, Futures Contracts on Stock Indexes, Options New York, New York, a corporation organized pursu- Thereon, and Futures Contracts on a Municipal ant to section 25(a) of the Federal Reserve Act (the Bond Index "Edge Act") (12 U.S.C. § 611 et seq.), and two nondeposit trust companies, Bank of Montreal (Califor- Bank of Montreal, Montreal, Quebec, Canada, a bank nia), San Francisco, California, and Bank of Montreal holding company within the meaning of the Bank Trust Company, New York, New York, operated pursuant to the requirements of section 225.25(b)(3) of the Board's Regulation Y. 8. "Proposed Policy Statement of the Board of Governors of the Harris, with approximately $8.8 billion in total as- Federal Reserve System for Assessing Competitive Factors Under the Bank Merger Act and the Bank Holding Company Act," 47 Federal sets, is the third largest commercial banking organiza- Register 9017 (March 3, 1982). While the proposed policy statement has not been adopted by the Board, the Board has applied the criteria set forth in the proposed policy statement in its analysis of the effects of the proposals on probable future competition. 1. All banking data are as of December 31, 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 971 tion in Illinois, with approximately $479.4 million in posal. There is no evidence in the record that consumtotal deposits, representing 4.8 percent of deposits mation of the proposed FCM activities would result in held by commercial banking organizations statewide. any adverse effects, such as undue concentration of The bank subsidiaries of Harris, which include Harris resources, decreased or unfair competition, conflicts Trust and Savings Bank, the third largest commercial of interests, or unsound banking practices. In addition, bank in Illinois, and several smaller commercial the Board has taken into account and has relied on the banks, all operate in the Chicago, Illinois, banking regulatory framework established pursuant to law by market2 and together hold approximately 7.3 percent the CFTC for the trading of futures, as well as the of the deposits held by commercial banking organiza- conditions set forth in section 225.25(b)(18) of Regulations in that market. tion Y with respect to executing and clearing futures HFC is a futures commission merchant ("FCM"), contracts. registered with the Commodity Futures Trading Com- Based upon a consideration of all the relevant facts, mission ("CFTC"), that engages in futures activities the Board concludes that the balance of the public permissible for bank holding companies under section interest factors that it is required to consider under 225.25(b)(18) of the Board's Regulation Y, 12 C.F.R. section 4(c)(8) is favorable. § 225.25(b)(18). This determination is also subject to all of the The Board has previously determined that the exe- conditions set forth in Regulation Y, including sections cution and clearance of futures contracts on a munici- 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and pal bond index is closely related to banking. Bankers 225.23(b)(3)), and to the Board's authority to require Trust New York Corporation, 71 FEDERAL RESERVE such modification or termination of the activities of a BULLETIN 111 (1985). The Board has also previously bank holding company or any of its subsidiaries as the determined that the execution and clearance of futures Board finds necessary to assure compliance with the contracts and options on futures contracts based on provisions and purposes of the BHC Act and the stock indexes is closely related to banking. J.P. Mor- Board's regulations and orders issued thereunder, or gan & Co. Incorporated, 71 FEDERAL RESERVE BUL- to prevent evasion thereof. LETIN 251 (1985). The proposed activities of HFC are The transaction shall be made not later than three essentially identical to those activities previously ap- months after the effective date of this Order, unless proved by the Board. Thus, the Board concludes that such period is extended for good cause by the Board or Applicant's proposal to execute and clear futures by the Federal Reserve Bank of Chicago, pursuant to contracts on stock indexes, options thereon, and fu- delegated authority. tures contracts on a municipal bond index is closely By order of the Board of Governors, effective Octorelated to banking. ber 7, 1985. In order to approve this application, the Board is also required to determine that the performance of the Voting for this action: Vice Chairman Martin and Goverproposed activities by Applicant "can reasonably be nors Partee, Rice, and Seger. Absent and not voting: Chairman Volcker and Governor Wallich. expected to produce benefits to the public . . . that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair com- JAMES MCAFEE petition, conflicts of interests, or unsound banking [SEAL] Associate Secretary of the Board practices." (12 U.S.C. § 1843(c)(8)). Consummation of Applicant's proposal would provide added convenience to those clients of Applicant Orders Issued Under Sections 3 and 4 of the and its subsidiaries that trade in the cash, forward and Bank Holding Company Act futures markets for these instruments. The Board expects that the de novo entry of Applicant into the First Union Corporation market for these services would increase the level of Charlotte, North Carolina competition among providers of these services already in operation. Accordingly, the Board concludes that Order Approving Acquisition of a Bank Holding the performance of the proposed activities by Appli- Company cant can reasonably be expected to provide benefits to the public. First Union Corporation, Charlotte, North Carolina, a The Board also has considered the potential for bank holding company within the meaning of the Bank adverse effects that may be associated with this pro- Holding Company Act (12 U.S.C. § 1841 et seq.) ("Act"), has applied for the Board's approval under section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to 2. The Chicago banking market is approximated by Cook, DuPage, and Lake Counties, Illinois. acquire the successor by merger to Atlantic Bancor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 Federal Reserve Bulletin • December 1985 poration, Inc., Jacksonville, Florida ("Atlantic").1 As holding company's home state,4 unless such acquisia result of the acquisition, Applicant would acquire tion is "specifically authorized by the statute laws of indirectly Atlantic's two subsidiary banks, Atlantic the state in which such bank is located, by language to National Bank of Florida, Jacksonville, Florida, and that effect and not merely by implication." The statute Atlantic National Bank of Miami, Miami, Florida. laws of Florida authorize the acquisition of a bank in Applicant has also applied for the Board's appro- Florida by a bank holding company that controls a val under section 4(c)(8) of the Act (12 U.S.C. bank located in other states in a defined southeastern § 1843(c)(8)) and section 225.23 of the Board's Regula- region, including North Carolina.5 Such acquisitions tion Y (12 C.F.R. § 225.23) to acquire Atlantic's non- are permitted if the laws of the acquiring institution's banking subsidiary, Atlantic Mortgage & Investment home state permit the acquisition of a bank in that Corporation, Jacksonville, Florida ("Atlantic state by a Florida bank holding company on a recipro- Mortgage"), a company that engages in originating cal basis.6 North Carolina has enacted a similar recipand servicing residential real estate loans and in mak- rocal statute,7 which permits the acquisition of a North ing other mortgage and construction loans. These Carolina bank by a bank holding company located in activities have been determined by the Board to be Florida. closely related to banking and permissible for bank Based on its review of the relevant Florida and holding companies, 12 C.F.R. § 225.25(b)(1). Norfh Carolina statutes, the Board has determined Notice of the applications, affording an opportunity that the North Carolina statute satisfies the conditions for interested persons to submit comments and views, of the Florida regional interstate banking statute and has been given in accordance with sections 3 and 4 of that Florida has by statute expressly authorized a the Act (50 Federal Register 31,427 (1985)). The time North Carolina bank holding company, such as Applifor filing comments and views has expired, and the cant, to acquire a Florida bank or bank holding compa- Board has considered the applications and all com- ny, such as Atlantic.8 Accordingly, the Board conments received in light of the factors set forth in cludes that approval of Applicant's proposal to acquire section 3(c) of the Act and the considerations specified banks in Florida is not barred by the Douglas Amendin section 4(c)(8) of the Act.2 ment. Applicant is the third largest commercial banking Atlantic's banking subsidiaries operate in 18 marorganization in North Carolina. Its one subsidiary kets in Florida. Since Applicant's subsidiary bank bank controls total domestic deposits of approximate- does not operate in Florida, consummation of the ly $3.6 billion, representing 13.8 percent of the total proposed acquisition would have no effect on existing deposits in commercial banks in North Carolina.3 competition in any relevant market. The Board has Atlantic, the eighth largest commercial banking orga- also examined the effect of Applicant's acquisition of nization in Florida, has two subsidiary banks that Atlantic on probable future competition in the relevant control aggregate domestic deposits of approximately geographic markets in light of the Board's proposed $2.7 billion, representing 4.5 percent of the total guidelines for assessing the competitive effects of deposits in commercial banks in Florida. market-extension mergers or acquisitions.9 In view of Section 3(d) of the Act (12 U.S.C. § 1842(d)), the the existence of numerous other potential entrants Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of any bank located outside of the 4. A bank holding company's home state is that state in which the operations of the bank holding company's banking subsidiaries were principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. 1. Applicant has also applied under section 3(a)(1) of the Act 5. Fla. Stat. Ann. § 658.295 (Supp. 1984). (12 U.S.C. § 1842(a)(1)) for approval for its wholly-owned inactive 6. Fla. Stat. Ann. § 658.295(3)(a). subsidiary, Queen City Special Company A, Charlotte, North Caroli- 7. N.C. Gen. Stat. §§ 53-209 et seq. (Supp. 1984). na ("Queen City"), to become a bank holding company through 8. The Board previously has made a similar determination with merger with Atlantic. Queen City is of no significance except as a respect to the Florida statute's authorization of acquisitions of Florida means to facilitate this transaction. banks by bank holding companies located in Georgia, which has 2. The Board received a protest from Greater Orlando Area Legal enacted a statute parallel to North Carolina's statute. See SunTrust Services, Inc., Orlando; Central Florida Legal Services, Inc., Dayto- Banks, Inc., 71 FEDERAL RESERVE BULLETIN 176,177 (1985); Citizens na Beach; Legal Services of Greater Miami, Inc., Miami; and Commu- and Southern Corporation, 71 FEDERAL RESERVE BULLETIN 728, 729 nity Economic Development Work Group, Inc., Sarasota, alleging (1985). that Atlantic's subsidiary banks are not fulfilling their responsibility 9. "Proposed Policy Statement of the Board of Governors of the under the Community Reinvestment Act to help meet the credit needs Federal Reserve System for Assessing Competitive Factors Under the of their communities. The protestants withdrew their protest following Bank Merger Act and the Bank Holding Company Act," 47 Federal Several meetings with Applicant and Applicant's adoption of an Register 9017 (1982). While the proposed policy statement has not Undertaking designed to help meet the credit needs of the communi- been adopted by the Board, the Board has applied the criteria set forth ties served by Atlantic. in the proposed policy statement in its analysis of the effects of 3. Banking data are as of June 30, 1984. proposals on probably future competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 973 from states within the southeastern interstate banking nonbank participants. Accordingly, the combination region into each of the markets served by Atlantic or of Cameron-Brown and Atlantic Mortgage would have Applicant, the Board has concluded that consumma- no significant effect on competition in these nationtion of the proposed transaction would not have any wide product markets. significant adverse effects on probable future competi- After consideration of the above facts and other tion in any relevant market. facts of record, the Board concludes that Applicant's The financial and managerial resources and future acquisition of Atlantic's nonbanking subsidiary would prospects of Applicant, Atlantic, and their respective not significantly affect existing or probable future subsidiaries are consistent with approval of the appli- competition in any relevant market. Furthermore, cations. Considerations relating to the convenience there is no evidence in the record to indicate that and needs of the communities to be served also are approval of this proposal would result in undue conconsistent with approval, particularly in light of Appli- centration of resources, unfair competition, conflicts cant's adoption of a formal Undertaking regarding the of interests, unsound banking practices, or other ad- Community Reinvestment Act obligations of its pro- verse effects on the public interest. Accordingly, the posed subsidiary banks. Board has determined that the balance of the public Applicant has also applied, pursuant to section interest factors it must consider under section 4(c)(8) 4(c)(8) of the Act, to acquire Atlantic Mortgage, a of the Act is favorable and consistent with approval of nonbanking company that engages in originating and the application to acquire Atlantic's nonbanking subservicing residential real estate loans and in making sidiary. other mortgage and construction loans. Applicant cur- Based on the foregoing and other facts of record, the rently engages in mortgage banking activities in Flori- Board has determined that the applications under da and nationwide through its subsidiary, Cameron- sections 3 and 4 of the Act should be, and hereby are, Brown Corporation ("Cameron-Brown"). approved. The acquisition of Atlantic's subsidiary In the market for one- to four-family mortgage banks shall not be consummated before the thirtieth originations,10 this proposal would eliminate existing calendar day following the effective date of this Order, competition between Atlantic Mortgage and Cameron- and neither the banking acquisition nor the nonbank- Brown in the Jacksonville, Orlando, and Tampa mar- ing acquisition shall occur later than three months kets.11 However, in each case, the market for this after the effective date of this Order, unless such product is unconcentrated, with numerous bank and period is extended for good cause by the Board or by nonbank competitors, and few barriers to entry exist. the Federal Reserve Bank of Richmond, acting pursu- Moreover, Cameron-Brown's market share of residen- ant to delegated authority. The determination with tial mortgage originations is not substantial in any of respect to Applicant's acquisition of Atlantic Mortthe three markets. Accordingly, the proposed acquisi- gage is subject to all of the conditions set forth in tion would not have a significant adverse effect on Regulation Y, including sections 225.4(d) and competition for residential mortgage originations in 225.23(b) (12 C.F.R. §§ 225.4(d) and 225.23(b)), and to any relevant market. the Board's authority to require such modifications or The markets for mortgage servicing, construction termination of activities of a bank holding company or lending, and the origination of non-residential and any of its subsidiaries as the Board finds necessary to multi-family residential mortgage loans are national in assure compliance with, and prevent evasions of, the scope.12 Atlantic Mortgage's market share in each of provisions and purposes of the Act and the Board's these product markets is de minimis, and the markets regulations and orders issued thereunder. are unconcentrated, with a large number of bank and By order of the Board of Governors, effective October 16, 1985. Voting for this action: Chairman Volcker and Governors 10. This product market has been determined to be local in scope. See, e.g., NBD Bancorp, Inc., 71 Federal Reserve Bulletin 258, 261 Martin, Partee, and Rice. Absent and not voting: Governors (1985). Wallich and Seger. 11. The Jacksonville, Orlando, and Tampa markets are defined as the Ranally Metropolitan Areas for those three cities. JAMES MCAFEE 12. See NBD Bancorp, Inc., 71 Federal Reserve Bulletin 258, 261 (1985). [SEAL] Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 Federal Reserve Bulletin • December 1985 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors Recent applications have been approved by the Board of Governors as 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) Arlington Commonwealth Corporation, Mercantile National Bank, October 10, 1985 Arlington, Texas Arlington, Texas Associated Bank Shares Corporation, First Bank, October 21, 1985 Colorado Springs, Colorado Colorado Springs, Colorado Commerce & Energy Bank Holding Commerce & Energy Bank of October 28, 1985 Company, Lafayette, Lafayette, Louisiana Lafayette, Louisiana Financial Consortium of America, Bank of La Costa, October 28, 1985 Solana Beach, California Carlsbad, California Lake Hamilton Enterprises, Inc., The Bank of Harrisburg, October 9, 1985 Little Rock, Arkansas Harrisburg, Arkansas Republic Bank Corporation, Republic Bank Preston North, N.A., October 18, 1985 Dallas, Texas Piano, Texas Security North Corporation, BancCentral, October 15, 1985 Amarillo, Texas Amarillo, Texas Summit Bancorporation, Inc., Summit County Bank, October 28, 1985 Minneapolis, Minnesota Frisco, Colorado 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 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Allied Bankshares, Inc., Bank of Millen, Atlanta September 26, 1985 Thomson, Georgia Millen, Georgia American Fletcher Corporation, Union Bank and Trust Company, Chicago October 16, 1985 Indianapolis, Indiana Franklin, Indiana American National Bancshares, American Bank of Ruston, N.A., Dallas October 9, 1985 Inc., Ruston, Louisiana Ruston, Louisiana ARSEBCO, Inc., The Richardson County Bank and Kansas City October 15, 1985 Falls City, Nebraska Trust Co., Falls City, Nebraska Bank Shares Incorporated, Fidelity Bank Northeast, Minneapolis August 29, 1985 Minneapolis, Minnesota Minneapolis, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 975 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Bankvest, Inc., Peoples National Bank of Philadelphia October 7, 1985 Wilkes-Barre, Pennsylvania Ed wards ville, Edwardsville, Pennsylvania Brunswick Bancorp, Brunswick Bank & Trust New York October 18, 1985 New Brunswick, New Jersey Company, Manalapan Township, New Jersey Canebrake Bancshares, Inc., Canebrake Bank, Atlanta October 4, 1985 Uniontown, Alabama Uniontown, Alabama CB&T Bancshares, Inc., Community Bank & Trust, Atlanta September 23, 1985 Hartselle, Alabama Hartselle, Alabama Chemical Financial Corporation, Chemical Bank West, Chicago September 27, 1985 Midland, Michigan Cadillac, Michigan Citizens Bancshares of Loyal, Citizens State Bank of Loyal, Chicago October 21, 1985 Inc., Loyal, Wisconsin Loyal, Wisconsin Citizens State Bancorp, Citizens State Bank, Cleveland October 23, 1985 Silverton, Ohio Silverton, Ohio City Financial Corp. of Tampa, City Bank of Tampa, Atlanta September 27, 1985 Tampa, Florida Tampa, Florida Commerce America Corp., Old Capital Bank & Trust St. Louis October 9, 1985 Jeffersonville, Indiana Company, Cory don, Indiana Commercial Bancshares, Inc., Edge water National Bank, New York October 4, 1985 Jersey City, New Jersey Englewood Cliffs, New Jersey Community Bancorp, Inc., The First National Bank of New York October 4, 1985 Rhinebeck, New York Rhinebeck, Rhinebeck, New York Community Banks, Inc., Farmers and Merchants Bank, Chicago October 11, 1985 Middleton, Wisconsin Richland Center, Wisconsin Community Financial Corp., Community Savings Bank, Chicago September 25, 1985 Edge wood, Iowa Edge wood, Iowa Community Holding Company, The First National Bank of Cleveland September 26, 1985 Inez, Kentucky Louisa, Louisa, Kentucky Country Club Bancorporation, Heritage Bank of Country Club Chicago October 16, 1985 Inc., Hills, Country Club Hills, Illinois Country Club Hills, Illinois Ellinwood Bankshares, Inc., The Peoples State Bank and Kansas City October 10, 1985 Salina, Kansas Trust Company, Ellinwood, Kansas Farmers State Bancorp., State Bank of Carthage, Chicago October 15, 1985 College Corner, Ohio Carthage, Indiana The First National Bank of Mays, Mays, Indiana F&M National Corporation, Albemarle Bank and Trust Com- Richmond October 2, 1985 Winchester, Virginia pany, Charlottesville, Virginia FIRSNABANCO, INC., Citizens State Bank, Chicago September 27, 1985 Viroqua, Wisconsin Trempealeau, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 Federal Reserve Bulletin • December 1985 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date First Bankers Corporation of The Island Bank, Atlanta September 16, 1985 Florida, Holmes Beach, Florida Pompano Beach, Florida First Commerce Bancorp, Inc., First Commerce National Bank, San Francisco October 9, 1985 Phoenix, Arizona Phoenix, Arizona First Geneva Banqueshares, The First National Bank of Chicago October 8, 1985 Inc., Geneva, Geneva, Illinois Geneva, Illinois First Huntsville Corporation, First National Bank of Madi- Dallas October 22, 1985 Huntsville, Texas sonville, Madisonville, Texas First Indiana Bancorp, Syracuse Bancorp, Inc., Chicago October 23, 1985 Elkhart, Indiana Syracuse, Indiana First Jersey National Corpora- The Broad Street National Bank New York October 8, 1985 tion, of Trenton, Jersey City, New Jersey Trenton, New Jersey First National Bancorp of The First National Bank of Chicago October 11, 1985 Cullom, Inc., Cullom, Cullom, Illinois Cullom, Illinois 1st Source Corporation, Marco Capital Corporation, Chicago October 4, 1985 South Bend, Indiana Plymouth, Indiana First United Bancshares, Inc., Park City State Bank, St. Louis October 3, 1985 Park City, Kentucky Park City, Kentucky Fourth Financial Corporation, Citizens National Bank and Trust Kansas City October 8, 1985 Wichita, Kansas Company of Emporia, Emporia, Kansas Franklin Capital Corporation, First Security Bank, Chicago October 11, 1985 Wilmette, Illinois Addison, Illinois Grant County Bancorporation, First Bank Southwest—Carson, Minneapolis October 21, 1985 Inc., Carson, North Dakota Carson, North Dakota Finest Financial Corp., Pelham Bank and Trust Com- Boston October 17, 1985 Pelham, New Hampshire pany, Pelham, New Hampshire HCB Financial Corp., The Hastings City Bank, Chicago September 24, 1985 Hastings, Michigan Hastings, Michigan The Hongkong and Shanghai Golden Pacific National Bank, New York October 11, 1985 Banking Corporation, New York, New York Hong Kong Howard Bancorp, The Woodstock National Bank, Boston October 22, 1985 Burlington, Vermont Woodstock, Vermont The Indiana National Corpora- The Fidelity Bank of Indiana, Chicago October 11, 1985 tion, Carmel, Indiana Indianapolis, Indiana The Indiana National Corpora- Lowell National Bancorp, Chicago October 1, 1985 tion, Lowell, Indiana Indianapolis, Indiana The Lowell National Bank, Lowell, Indiana The Indiana National Corpora- Union Bank and Trust Company, Chicago October 22, 1985 tion, Delphi, Indiana Indianapolis, Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 977 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Junction City Holding Com- Junction City Bancshares, Inc., St. Louis October 7, 1985 pany, Junction City, Arkansas Junction City, Arkansas Kansas Bank Corporation, Citizens Bank Services, Inc., Kansas City October 1, 1985 Liberal, Kansas Abilene, Kansas Kennett Bancshares, Inc., Kennett National Bank, St. Louis September 23, 1985 Kennett, Missouri Kennett, Missouri Klein Bancshares, Inc., Klein Bank-Cypresswood, N.A., Dallas October 2, 1985 Houston, Texas Houston, Texas Malta Bancshares, Inc., Community Bank of Utica, Chicago September 25, 1985 Malta, Illinois Utica, Illinois McLaughlin Bancshares, Inc., Security State Bank & Trust Dallas September 25, 1985 Ralls, Texas Company, Ralls, Texas South Plains Bancshares, Inc. Idalou, Texas Middlebury National Corpora- The National Bank of Middle- Boston September 23, 1985 tion, bury, Middlebury, Vermont Middlebury, Vermont New Bedford Community Luzo Bank and Trust Company, Boston October 4, 1985 Bancorp, New Bedford, Massachusetts New Bedford, Massachusetts Ohio Bancorp, The Minerva Banking Company, Cleveland September 25, 1985 Youngstown, Ohio Minerva, Ohio Ottawa Bancshares, Inc., First Kansas Bank, Kansas City October 3, 1985 Ottawa, Kansas Hoisington, Kansas Pinnacle Bancshares, Incorpo- State Bank of Paw Paw, Chicago September 27, 1985 rated, Paw Paw, Illinois Paw Paw, Illinois P.T.C. Bancorp, The First National Bank of Chicago September 25, 1985 Brookville, Indiana Vevay, Vevay, Indiana Putnam County Bancorp, Inc., Putman County Bank, Chicago October 7, 1985 Hennepin, Illinois Hennepin, Illinois San Mateo County Bancorp, San Mateo County National San Francisco October 15, 1985 Redwood City, California Bank, Redwood City, California Security State Corporation, Security State Bank, San Francisco October 9, 1985 Centralia, Washington Centralia, Washington Signal Hills Associates, Inc., State Bank of Hampton, Minneapolis October 3, 1985 West St. Paul, Minnesota Hampton, Minnesota Society Corporation, Society National Bank of North- Cleveland September 26, 1985 Cleveland, Ohio west Ohio, Port Clinton, Ohio South Ottumwa Bancshares, South Ottumwa Savings Bank, Chicago September 27, 1985 Inc., Ottumwa, Iowa Ottumwa, Iowa Taylor Bancshares, Inc., Valley National Bank of North Minneapolis September 26, 1985 North Mankato, Minnesota Mankato, North Mankato, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 Federal Reserve Bulletin • December 1985 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Toledo Trustcorp, Inc., The Society National Bank of Cleveland September 26, 1985 Toledo, Ohio Mid-Ohio, Bucyrus, Ohio Toledo Trustcorp, Inc., The Society National Bank of Cleveland September 26, 1985 Toledo, Ohio Northwest Ohio, Fostoria, Ohio Tri City Bankshares Corpora- The First National Bank of Eagle Chicago September 26, 1985 tion, River, Oak Creek, Wisconsin Eagle River, Wisconsin The TrustCompany Bancorpora- The Trust Company of New New York September 30, 1985 tion, Jersey, Jersey City, New Jersey Jersey City, New Jersey United New Mexico Financial United Bancshares, Inc., Dallas August 30, 1985 Corporation, Hobbs, New Mexico Albuquerque, New Mexico United Bank of Lea County, Hobbs, New Mexico Valley Bancorp, Inc., Montwood Bancshares, Inc., Dallas October 4, 1985 El Paso, Texas El Paso, Texas Wiregrass Bancorporation, The First National Bank of Atlanta October 15, 1985 Ashford, Alabama Ashford, Ashford, Alabama Section 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Barclays PLC Northwestern Mortgage Corpora- New York October 4, 1985 London, England tion, Barclays U.S. Holdings Inc., Charlotte, North Carolina New York, New York Barclays USA Inc., Wilmington, Delaware Barclay sAmericanCorporation, Charlotte, North Carolina Community Bank System, Inc., data processing services New York October 18, 1985 Syracuse, New York First Golden Bancorporation, sale of credit-related insurance Kansas City October 3, 1985 Golden, Colorado First Railroad & Banking Com- Bob White Computing Services, Atlanta October 4, 1985 pany of Georgia, Inc., Augusta, Georgia Bloomington, Illinois Fishkill National Corporation, North Atlantic Leasing Corpora- New York October 9, 1985 Beacon, New York tion, Millbrook, New York Manufacturers Hanover Corpo- AmHoist Credit Corporation, New York October 9, 1985 ration, St. Paul, Minnesota New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 979 Section 4—Continued B ank(s)/Nonbanking Reserve Effective Applicant Company Bank date MCorp, Ohio Valley Data Control, Inc., Dallas October 18, 1985 Dallas, Texas Belpre, Ohio MCorp Financial, Inc., Wilmington, Delaware RIHT Financial Corporation, American Financial Systems Cor- Boston October 11, 1985 Providence, Rhode Island poration, Tampa, Florida Security Pacific Corporation, New England Mutual Association San Francisco October 15, 1985 Los Angeles, California Budget Plan, Inc., Keene, New Hampshire Security State Agency of Aitkin, John F. Solien Agency, Minneapolis October 18, 1985 Inc., Aitkin, Minnesota Aitkin, Minnesota Section 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Bellcorp, Inc., Citizens State Bancorp., Inc., Kansas City October 18, 1985 Manhattan, Kansas Manhattan, Kansas sale of credit life insurance ORDERS APPROVED UNDER BANK MERGER ACT By Board of Governors Effective Applicant Bank(s) date The Fifth Third Bank, The Fifth Third Bank of Miami Valley, September 18, 1985 Cincinnati, Ohio Kettering, Ohio By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date Bibb Interim Bank, First State Bank of Bibb County, Atlanta October 4, 1985 West Blocton, Alabama West Blocton, Alabama 1st Source Bank, 1st Source Bank of Marshall Chicago October 4, 1985 South Bend, Indiana County, Plymouth, Indiana Independence Bank, New Independence Bank, Dallas October 21, 1985 Piano, Texas Piano, Texas Princeton Bank, The Bank of New Jersey, N.A., Philadelphia October 22, 1985 Digitized for FPRrAinScEeRto n, New Jersey Moorestown, New Jersey http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 Federal Reserve Bulletin • December 1985 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. First National Bank of Blue Island Employee Stock Florida Department of Banking v. Board of Gover- Ownership Plan v. Board of Governors, No. 85- nors, No. 84-3831 (11th Cir., filed Feb. 15, 1985), 2615 (7th Cir., filed Sept. 23, 1985). and No. 84-3832 (11th Cir., filed Feb. 15, 1985). First National Bancshares II v. Board of Governors, Dimension Financial Corporation v. Board of Gover- No. 85-3702 (6th Cir., filed Sept. 4, 1985). nors, No. 84-1274 (U.S., filed Feb. 6, 1985). Independent Community Bankers Association of Lewis v. Volcker, et al., No. C-l-85-0099 (S.D. Ohio, South Dakota v. Board of Governors, No. 84-1496 filed Jan. 14, 1985). (D.C. Cir., filed Aug. 7, 1985). Brown v. United States Congress, et al., No. 84-2887- Florida Bankers Association, et al. v. Board of Gover- 6(IG) (S.D. Cal., filed Dec. 7, 1984). nors, No. 85-193 (U.S., filed Aug. 5, 1985). Seattle Bancorporation, et al. v. Board of Governors, Populist Party of Iowa v. Federal Reserve Board, No. 84-7535 (9th Cir., filed Aug. 15, 1984). No. 85-626-B (S.D. Iowa, filed Aug. 2, 1985). Melcher v. Federal Open Market Committee, No. 84- John R. Urwyler, et al. v. Internal Revenue Service, 1335 (D.D.C., filed Apr. 30, 1984). et al., No. CV-F-85-402 REC (E.D. Cal., filed July State of Ohio v. Board of Governors, No. 84-1270 18, 1985). (10th Cir., filed Jan. 30, 1984). Broad Street National Bank of Trenton v. Board of Colorado Industrial Bankers Association v. Board of Governors, No. 85-3387 (3d Cir., filed July 17, Governors, No. 84-1122 (10th Cir., filed Jan. 27, 1985). 1984). Wight, et al. v. Internal Revenue Service, et al., First Bancorporation v. Board of Governors, No. 84- No. CIV S-85-0012 MLS (E.D. Cal., filed July 12, 1011 (10th Cir., filed Jan. 5, 1984). 1985). Oklahoma Bankers Association v. Federal Reserve Cook v. Spillman, et al., No. CIV S-85-0953 EJG Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983). (E.D. Cal. filed July 10, 1985). The Committee For Monetary Reform, et al. v. Board Calhoun, et al. v. Board of Governors, No. 85-1750 of Governors, No. 84-5067 (D.D.C., filed June 16, (D.D.C., filed May 30, 1985). 1983). Florida Bankers Association v. Board of Governors, Securities Industry Association v. Board of Gover- No. 84-3883 and No. 84-3884 (11th Cir., filed nors, No. 80-2614 (D.C. Cir., filed Oct. 24. 1980), Feb. 15, 1985). and No. 80-2730 (D.C. Cir., filed Oct. 24, 1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks 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 A33 Federal and federally sponsored credit MONETAR Y AND CREDIT A GGREGA TES agencies—Debt outstanding A12 Aggregate reserves of depository institutions and monetary base SECURITIES MARKETS AND A13 Money stock, liquid assets, and debt measures CORPORATE FINANCE A15 Bank debits and deposit turnover A16 Loans and securities—All commercial banks A34 New security issues—State and local governments and corporations A35 Open-end investment companies—Net sales and COMMERCIAL BANKING INSTITUTIONS asset position 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

2 Federal Reserve Bulletin • December 1985 A35 Corporate profits and their distribution A54 Foreign official assets held at Federal Reserve A36 Nonfinancial corporations—Assets and Banks liabilities A55 Foreign branches of U.S. banks—Balance sheet A36 Total nonfarm business expenditures on new data plant and equipment A57 Selected U.S. liabilities to foreign official A37 Domestic finance companies—Assets and institutions liabilities and business credit REPORTED BY BANKS IN THE UNITED STATES REAL ESTATE A57 Liabilities to and claims on foreigners A38 Mortgage markets A58 Liabilities to foreigners A39 Mortgage debt outstanding A60 Banks' own claims on foreigners A61 Banks' own and domestic customers' claims on foreigners CONSUMER INSTALLMENT CREDIT A61 Banks' own claims on unaffiliated foreigners A62 Claims on foreign countries—Combined A40 Total outstanding and net change domestic offices and foreign branches A41 Terms REPORTED BY NONBANKING BUSINESS FLOW OF FUNDS ENTERPRISES IN THE UNITED STATES A42 Funds raised in U.S. credit markets A63 Liabilities to unaffiliated foreigners A43 Direct and indirect sources of funds to credit A64 Claims on unaffiliated foreigners markets SECURITIES HOLDINGS AND TRANSACTIONS Domestic Nonfinancial Statistics A65 Foreign transactions in securities A66 Marketable U.S. Treasury bonds and notes— SELECTED MEASURES Foreign transactions A44 Nonfinancial business activity—Selected measures INTEREST AND EXCHANGE RATES A45 Labor force, employment, and unemployment A46 Output, capacity, and capacity utilization A67 Discount rates of foreign central banks A47 Industrial production—Indexes and gross value A67 Foreign short-term interest rates A49 Housing and construction A68 Foreign exchange rates A50 Consumer and producer prices A51 Gross national product and income A52 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables International Statistics SUMMARY STATISTICS A53 U.S. international transactions—Summary A54 U.S. foreign trade A54 U.S. reserve assets 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 1985 1985 Q4 QI Q2 Q3 May June July Aug.' Sept. Reserves of depository institutions2 1 Total 3.8 17.4 12.2 16.4 18.1 24.8 12.2 16.5 8.7 2 Required 3.0 16.9 12.3 17.1 16.4 22.3 13.9 17.7 13.3 3 Nonborrowed 36.3 57.3 14.1 18.2 18.3 29.5 15.4 18.0 2.8 4 Monetary base3 4.7 8.2 7.5 10.3 10.6 13.5 6.8 13.4 7.0 Concepts of money, liquid assets, and debt4 5 Ml 3.2 10.6 10.2 15.0 14.0 19.8 9.3 20.3 11.3 6 M2 9.1 12.1' 5.3 10.2 8.5' 13.7' 8.5 11.1 7.0 7 M3 11.0 10.7 5.2 7.8 7.6 10.5 4.3' 9.2 9.7 8 L 9.6 10.0 5.8 n.a. 5.7' 9.5 5.7 n.a. n.a. 9 Debt 14.C 13.6' 11.7 11.8' 12.2' 11.8 11.9 11.5 n.a. Nontransaction components 10 In M25 10.9 12.5 3.8' 8.7 6.9 11.8' 8.3' 8.2 5.6 11 In M3 only6 18.7 5.5 4.8 -1.5 4.2' -2.1' -12.(K 1.2 21.0 Time and savings deposits Commercial banks 12 Savings7 -10.4 -8.7 -1.7 11.3 8.0 14.9 12.8 9.7 3.9 13 Small-denomination time8 6.9 -1.8 6.5 -4.4 7.4 2.2 -7.1 -13.3 -4.1 14 Large-denomination time9-10 12.2 2.6 8.3 -3.2 -4.0 -19.4 -9.<Y 8.6 22.9 Thrift institutions 15 Savings7 -6.6 2.2 3.1 14.7 4.3 8.5' 22.9 6.1 16 Small-denomination time 15.2 1.7 3.9 -4.5 10.1' 3.6' -8.1' -13.7 -5.6 17 Large-denomination time9 29.8 21.0 2.6 -2.8 13.2 2.3 -16.9 -3.9 14.8 Debt components4 18 Federal 16.1' 15.3 12.6 14.2 13.8' 15.9' 13.7 n.a. 19 Nonfederal 13.3 13.0 11.4' 11.0 11.2 11.1 10.7 10.8 n.a. 20 Total loans and securities at commercial banks" 9.2 9.9 9.6 9.5 13.3 9.3 10.2 6.9 8.6 1. Unless otherwise noted, rates of change are calculated from average commercial banks, money market funds (general purpose and broker/dealer), amounts outstanding in preceding month or quarter. foreign governments and commercial banks, and the U.S. government. Also 2. Figures incorporate adjustments for discontinuities associated with the subtracted is a consolidation adjustment that represents the estimated amount of implementation of the Monetary Control Act and other regulatory changes to demand deposits and vault cash held by thrift institutions to service their time and reserve requirements. To adjust for discontinuities due to changes in reserve savings deposits. requirements on reservable nondeposit liabilities, the sum of such required M3: M2 plus large-denomination time deposits and term RP liabilities (in reserves is subtracted from the actual series. Similarly, in adjusting for discontin- amounts of $100,000 or more) issued by commercial banks and thrift institutions, uities in the monetary base, required clearing balances and adjustments to term Eurodollars held by U.S. residents at foreign branches of U.S. banks compensate for float also are subtracted from the actual series. worldwide and at all banking offices in the United Kingdom and Canada, and 3. The monetary base not adjusted for discontinuities consists of total balances in both taxable and tax-exempt, institution-only money market mutual reserves plus required clearing balances and adjustments to compensate for float funds. Excludes amounts held by depository institutions, the U.S. government, at Federi Reserve Banks plus the currency component of the money stock less money market funds, and foreign banks and official institutions. Also subtracted is the amount of vault cash holdings of thrift institutions that is included in the a consolidation adjustment that represents the estimated amount of overnight RPs currency component of the money stock plus, for institutions not having required and Eurodollars held by institution-only money market mutual funds. reserve balances, the excess of current vault cash over the amount applied to L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term satisfy current reserve requirements. After the introduction of contemporaneous Treasury securities, commercial paper and bankers acceptances, net of money reserve requirements (CRR), currency and vault cash figures are measured over market mutual fund holdings of these assets. the weekly computation period ending Monday. Debt: Debt of domestic nonfinancial sectors consists of outstanding credit Before CRR, all components of the monetary base other than excess reserves market debt of the U.S. government, state and local governments, and private are seasonally adjusted as a whole, rather than by component, and excess nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conreserves are added on a not seasonally adjusted basis. After CRR, the seasonally sumer credit (including bank loans), other bank loans, commercial paper, bankers adjusted series consists of seasonally adjusted total reserves, which include acceptances, and other debt instruments. The source of data on domestic excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt currency component of the money stock plus the remaining items seasonally data are on an end-of-month basis. Growth rates for debt reflect adjustments for adjusted as a whole. discontinuities over time in the levels of debt presented in other tables. 4. Composition of the money stock measures and debt is as follows: 5. Sum of overnight RPs and Eurodollars, money market fund balances Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults (general purpose and broker/dealer), MMDAs, and savings and small time of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits deposits less the estimated amount of demand deposits and vault cash held by at all commercial banks other than those due to domestic banks, the U.S. thrift institutions to service their time and savings deposit liabilities. government, and foreign banks and official institutions less cash items in the 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, process of collection and Federal Reserve float; and (4) other checkable deposits money market fund balances (institution-only), less a consolidation adjustment (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer that represents the estimated amount of overnight RPs and Eurodollars held by service (ATS) accounts at depository institutions, credit union share draft institution-only money market mutual funds. accounts, and demand deposits at thrift institutions. The currency and demand 7. Excludes MMDAs. deposit components exclude the estimated amount of vault cash and demand 8. Small-denomination time deposits—including retail RPs—are those issued deposits respectively held by thrift institutions to service their OCD liabilities. in amounts of less than $100,000. All IRA and Keogh accounts at commercial M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) banks and thrifts are subtracted from small time deposits. issued by all commercial banks and overnight Eurodollars issued to U.S. residents 9. Large-denomination time deposits are those issued in amounts of $100,000 by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts or more, excluding those booked at international banking facilities. (MMDAs), savings and small-denomination time deposits (time deposits—includ- 10. Large-denomination time deposits at commercial banks less those held by ing retail RPs—in amounts of less than $100,000), and balances in both taxable and money market mutual funds, depository institutions, and foreign banks and tax-exempt general purpose and broker/dealer money market mutual funds. officii institutions. Excludes individual retirement accounts (IRA) and Keogh balances at depository 11. Changes calculated from figures shown in table 1.23. institutions and money market funds. Also excludes all balances held by U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • December 1985 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures FFFaaaccctttooorrrsss 1985 1985 July Aug. Sept. Aug. 14 Aug. 21 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 191,521 190,759 194,350 191,539 190,147 189,887 193,890 193,579 192,973 196,331 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 168,803 168,440 171,246 168,361 168,551 168,429 170,774 170,965 170,589 173,146 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 168,183 165,378 170,503 168,361 168,551 168,154 170,124 170,332 170,589 171,243 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 620 62 743 0 0 275 650 633 0 1,903 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,448 8,249 8,428 8,244 8,227 8,278 8,581 8,364 8,227 8,598 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,302 8,238 8,227 8,244 8,227 8,227 8,227 8,227 8,227 8,227 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 146 11 201 0 0 51 354 137 0 371 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 1,180 1,109 1,283 1,144 1,079 1,096 1,692 1,091 1,079 1,262 1111100000 FFFFFllllloooooaaaaattttt 703 488 779 572 659 148 582 784 396 468 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 12,387 12,473 12,614 13,219 11,631 11,935 12,261 12,375 12,683 12,856 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 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 16,794 16,843 16,899 16,833 16,847 16,86c 16,870 16,884 16,898 16,912 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 187,579 187,859' 188,371 188,337 187,902 187,243' 188,755 189,370 188,677 187,527 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 577 552 546 553 550 550 547 545 546 546 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 3,918 2,925 4,275 3,032 3,182 2,436 3,339 3,790 3,354 6,601 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 228 204 235 209 202 198 223 215 215 221 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss .................... 1,660 1,661 1,607 1,607 1,650 1,654 1,649 1,583 1,610 1,670 2222200000 OOOOOttttthhhhheeeeerrrrr 367 485 466 413 661 394 410 426 586 446 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,243 6,238 6,274 6,216 6,165 6,150 6,241 6,349 6,269 6,239 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 23,451 23,386 25,183 23,712 22,389 23,829 25,305 23,894 24,322 25,700 End-of-month figures Wednesday figures 1985 1985 July Aug. Sept. Aug. 14 Aug. 21 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 190,923 192,693 194,148 194,358 190,009 191,952 196,782 197,749 192,816 198,919 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 167,095 170,109 169,702 169,474 167,837 169,862 172,449 173,904 169,976 174,646 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 167,095 170,109 169,702 169,474 167,837 167,934 170,497 169,474 169,976 170,800 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 0 0 0 0 1,928 1,952 4,430 0 3,846 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,257 8,227 8,227 8,227 8,227 8,581 9,422 9,184 8,227 8,852 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,257 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 0 0 0 0 354 1,195 957 0 625 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 1,567 2,068 2,520 2,397 1,441 1,098 967 1,381 1,190 2,121 3333322222 FFFFFllllloooooaaaaattttt -571 -152 69 282 517 172 1,410 550 720 225 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 14,575 12,441 13,630 13,978 11,987 12,239 12,534 12,730 12,703 13,075 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 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 16,817 16,868r 16,924 16,845 16,859 16,868r 16,882 16,896 16,910 16,924 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 187,040 188,548 187,336 188,331 187,600' 187,630' 189,532 189,257 188,241 187,302 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 577 548 546 550 550 548 545 546 546 544 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 2,656 3,656 4,174 2,754 4,172 2,561 2,598 2,918 4,070 8,009 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 274 223 535 215 198 188 185 202 234 230 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,395 1,435 1,444 1,407 1,421 1,421 1,435 1,435 1,441 1,445 4444422222 OOOOOttttthhhhheeeeerrrrr 323 389 497 346 413 423 428 437 684 401 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,325 6,240 6,530 6,024 5,987 5,994 6,111 6,192 6,078 6,073 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 24,858 24,230 25,718 27,284 22,235 25,763 28,538 29,366 24,140 27,546 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 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1982 1983 1984 1985 Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. 1 Reserve balances with Reserve Banks' 24,939 21,138 21,738 20,416 22,065 23,217 22,385 23,367 23,503 23,973 2 Total vault cash2 20,392 20,755 22,316 23,927 21,863 21,567 21,898 22,180 22,530 22,839 3 Vault cash used to satisfy reserve requirements3 . 17,049 17,908 18,958 19,857 18,429 18,435 18,666 18,985 19,300 19,548 4 Surplus vault cash4 3,343 2,847 3,358 4,070 3,434 3,132 3,231 3,196 3,230 3,291 5 Total reserves5 41,853 38,894 40,696 40,273 40,494 41,652 41,051 42,352 42,803 42,963 6 Required reserves 41,353 38,333 39,843 39,370 39,728 40,914 40,247 41,447 41,948 42,135 7 Excess reserve balances at Reserve Banks6 500 561 853 903 766 738 804 905 855 827 8 Total borrowings at Reserve Banks 697 774 3,186 1,289 1,593 1,323 1,334 1,205 1,107 1,073 9 Seasonal borrowings at Reserve Banks 33 96 113 71 88 135 165 151 167 221 10 Extended credit at Reserve Banks7 187 2 2,604 803 1,059 868 534 665 507 507 Biweekly averages of daily figures for weeks ending 1985 June 5 June 19 July 3 July 17 July 31 Aug. 14 Aug. 28 Sept. 11 Sept. 25 Oct. 9p 11 Reserve balances with Reserve Banks' 22,610 23,861 23,084 24,256 22,840 23,468 23,102' 43,509 44,800 45,521 1? Total vault cash2 21,692 21,688 23,029 22,019 22,935 22,829 23,052 21,887 22,705 23,067 13 Vault cash used to satisfy reserve requirements3 . 18,472' 18,724 19,550 19,043 19,505 19,550 19,689' 18,880 19,766 19,963 14 Surplus vault cash4 3,220 2,964 3,480 2,977 3,431 3,280 3,363' 3,008 2,939 3,105 IS Total reserves5 41,082 42,585 42,633 43,298 42,344 43,018 42,791' 43,509 44,800 45,521 16 Required reserves 40,260 41,861 41,461 42,608 41,392 42,280 41,841' 42,838 44,133 44,853 17 Excess reserve balances at Reserve Banks6 823 724 1,172 690 953 738 950' 672 667 668 18 Total borrowings at Reserve Banks 1,518 1,123 1,167 1,284 917 990 1,088 1,392 1,171 1,395 19 Seasonal borrowings at Reserve Banks 171 142' 153 152 185 224 225 196 212 195 20 Extended credit at Reserve Banks7 914 612' 620 483 506 509 610 669 656 627 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 1985 week ending Monday BByy mmaattuurriittyy aanndd ssoouurrccee Aug. 19 Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 One day and continuing contract 1 Commercial banks in United States 63,841 58,282 58,562 68,597 65,553 60,498 62,753 65,738 65,534 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 29,258 28,111 28,068 26,700 27,636 25,896 24,687 26,195 28,202 3 Nonbank securities dealers 10,776 10,228 8,754 10,060 9,735' 9,877 10,673 10,977 9,982 4 All other 25,572 25,649 26,307 25,236 25,193 25,469 26,760 25,290 25,303 All other maturities 5 Commercial banks in United States 8,693 9,308 9,759 9,402 9,751 9,507 9,596 9,004 10,014 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,544 7,693 7,701 7,822 7,735 7,792 7,494 7,290 7,881 7 Nonbank securities dealers 9,602 9,290 10,563 9,801 10,172 9,931 9,770 9,222 9,906 8 All other 7,368 7,574 8,325 8,079 7,90C 7,535 7,542 7,223 7,342 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 29,686 27,009 29,438 31,030 30,163 29,777 32,734 30,977 30,925 10 Nonbank securities dealers 7,357 7,578 6,728 8,126 8,286 7,863 7,662 9,011 9,316 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • December 1985 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit2 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 10/28/85 date rate 10/28/85 rate 10/28/85 rate 10/28/85 rate Boston 71/2 5/20/85 71/2 8V6 9 9V6 10 5/20/85 New York 5/20/85 5/20/85 Philadelphia 5/24/85 5/24/85 Cleveland 5/21/85 5/21/85 Richmond 5/20/85 5/20/85 Atlanta 5/20/85 5/20/85 Chicago 5/20/85 5/20/85 St. Louis 5/21/85 5/21/85 Minneapolis 5/20/85 5/20/85 Kansas City .... 5/20/85 5/20/85 Dallas IVi 5/20/85 m m 5/20/85 San Francisco... 5/21/85 9 9'/2 10 5/21/85 Range of rates in recent years3 Range (or F.R. Range (or F.R. Range(or F.R. Effective date A le ll v e F l . s R - . B o a f n 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 7'/2 7!6 1978— July 3 7-71/4 7'/4 1981— May 8 14 14 1974— Apr. 25 7 '/2—8 10 71/4 71/4 Nov. 2 13-14 13 1975— D Ja e n c . . 3 1 9 6 0 6 7 7 '/ 3 7 8 4 / 3 - 4 / 7 4 - 3 8 / 4 7 7 7 3 3 3 / / / 4 4 4 A O S N e u c o p t g v . t . . . 2 2 1 2 2 1 1 6 0 m 8- 7 8 8 - 8 3 1 1 9 / / 4 2 /2 V i 7 8 8 m 9 1 3 1 / / h 4 2 1982— J D u e l c y . 2 2 4 0 6 3 11 1 1 1 1 1 /2 3 2 > - 6 1 2 1 1 1 11 1 3 2 1 1 /6 /2 2 1 4 0 7'/ 7 4 1 -7 /4 3/4 7 7 1 1 / / 4 4 3 9>/2 9!h Aug. 2 3 ll-l 1 l 1 ' /2 1 1 1 1 Feb. 5 63/4-71/4 63/4 1979—July 20 10 10 16 101/6 10'/2 7 63/4 63/4 Aug. 17 10-10'/2 10!/> 27 lO-lO'/i 10 Mar. 10 6V4-63/4 61/4 20 1016 \m 30 10 10 14 61/4 61/4 Sept. 19 1016-1 1 11 Oct. 12 9^-10 9>6 May 16 6-61/4 6 21 11 11 13 91/2 9'/2 23 6 6 Oct. 8 11-12 12 Nov. 22 9-91/2 9 10 12 12 26 9 9 1976—Jan. 19 51/2-6 51/2 Dec. 14 81/2-9 9 23 51/2 51/2 1980—Feb. 15 12-13 13 15 81/6-9 81/6 Nov. 22 5'/4-5'/2 51/4 19 13 13 17 8 !6 8 Vi 26 51/4 51/4 May 29 12-13 13 30 12 12 1984— Apr. 9 8'/2-9 9 1977— Aug. 30 51/4-53/4 51/4 June 13 11-12 11 13 9 9 31 51/4-53/4 53/4 16 11 11 Nov. 21 81/2-9 816 Sept. 2 53/4 53/4 July 28 10-11 10 26 81/2 81/2 Oct. 26 6 6 29 10 10 Dec. 24 8 8 Sept. 26 11 11 1978— Jan. 9 6-6'/2 6'/2 Nov. 17 12 12 1985— May 20 71/2-8 IVi 20 6'/2 61/2 Dec. 5 12-13 13 24 7'/2 716 May 11 61/2-7 7 8 13 13 12 7 7 5 13-14 14 In effect Oct. 28, 1985 m 71/6 1. A temporary simplified seasonal program was established on Mar. 8, 1985, Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979, 1980, and the interest rate was set at 8V2 percent at that time. On May 20 this rate was 1981, and 1982. lowered to 8 percent. In 1980 and 1981, the Federal Reserve applied a surcharge to short-term 2. Applicable to advances when exceptional circumstances or practices involve adjustment credit borrowings by institutions with deposits of $500 million or more only a particular depository institution and to advances when an institution is that had borrowed in successive weeks or in more than 4 weeks in a calendar under sustained liquidity pressures. As an alternative, for loans outstanding for quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes 1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was into account rates on market sources of funds, but in no case will the rate charged adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and be less than the basic rate plus one percentage point. Where credit provided to a to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective particular depository institution is anticipated to be outstanding for an unusually Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for prolonged period and in relatively large amounts, the time period in which each applying the surcharge was changed from a calendar quarter to a moving 13-week rate under this structure is applied may be shortened. See section 201.3(b)(2) of period. The surcharge was eliminated on Nov. 17, 1981. Regulation A. 3. Rates for short-term adjustment credit. For description and earlier data see the following publications of the Board of Governors: Banking and Monetary 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 ooff ss ii dd tt ee ii pp nn oo ttee ss rr ii vv tt,, aa ll aa 33 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand2 Net transaction accounts7,8 7 12/30/76 $0-$29.8 million 3 1/1/85 9Vi 12/30/76 Over $29.8 million 1122 11//11//8855 $10 million-$100 million 113/4 12/30/76 $100 million-$400 million 123/4 12/30/76 Nonpersonal time deposits9 Over $400 million 16'/4 12/30/76 By original maturity Less than IV2 years 3 10/6/83 Time and savings2>3 1 Vi 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 2Vl 1/8/76 4 years or more 1 10/30/75 Over $5 million, by maturity 30-,179 days 6 12/12/74 180 days to 4 years 21/2 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 marginal requirement was increased to 10 percent annually by 80 percent of the percentage increase in transaction accounts held by beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and all depository institutions determined as of June 30 each year. Effective Dec. 31, was eliminated beginning July 24, 1980. Managed liabilities are defined as large 1981, the amount was increased accordingly from $25 million to $26 million; 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 Nonfinancial Statistics • December 1985 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions1 Percent per annum Savings and loan associations and Commercial banks mutual savings banks (thrift institutions)1 In effect Oct. 31, 1985 In effect Oct. 31, 1985 Type of deposit Percent Effective date Percent Effective date 1 Savings 5W 1/1/84 5W 7/1/79 2 Negotiable order of withdrawal accounts 5'A 12/31/80 5V4 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 5 7-31 days of less than $1,000'' 5 Vi 1/1/84 5 Vi 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. 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 1982 1983 1984 Feb. Apr. May June July U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 2 3 1 G G Ex r r o o c s h s s s a n s p g a u l e r e c s hases 1 8 7 , , 3 0 6 6 9 7 0 1 3 8 , , 4 8 2 88 0 0 20 8, , 5 0 5 3 7 6 0 2,9 2 7 1 6 4 0 9 5 1 5 6 4 0 6,026 0 0 4 2 1 7 7 4 0 2,099 0 0 0 0 0 4 Redemptions 3,000 2,400 7,700 400 500 0 800 0 200 5 6 Oth G G e r r r o o s s s s s w p s it a u h l i r e n c s h a I se y s e ar 312 0 484 0 1,1260 0 0 961 0 245 0 0 0 0 0 0 0 9 7 8 R M Ex e a d c tu e h m r a i n t p y g t e i s o h n i s f t -1 1 4 7 , , 1 2 6 9 4 5 0 -1 1 6 8 , , 5 88 5 8 7 3 7 -2 1 0 6 , , 8 3 4 5 0 4 0 -2 1 , , 7 9 3 8 9 7 0 1,29 0 9 0 -1 1 , , 4 1 6 2 3 0 9 -2 2 , , 9 4 4 4 5 3 0 1,312 0 0 -1 1 , , 7 2 7 3 8 8 0 1 1 1 0 1 t G G o r r 5 o o s s s s y e s p a a u r l s r e c s h ases 1,797 0 1,89 0 6 1,63 0 8 0 0 465 0 846 0 0 0 0 0 0 0 1 1 2 3 M Ex a c tu h r a i n ty g e shift -1 1 4 1 , , 5 8 2 0 4 4 -1 1 5 1 , , 5 6 3 4 3 1 -1 1 3 6 , , 7 0 0 3 9 9 -1 1 ,9 ,6 0 4 2 5 -1,299 0 -1 1 , , 1 4 1 6 4 3 -2 1 , , 1 9 0 4 1 0 -1,312 0 -1 1 ,1 ,7 5 7 3 8 1 1 5 4 5 t G G o r r 1 o o 0 s s s s y s p e a u a l r r e s c s h ases 388 0 890 0 5 3 3 0 6 0 0 0 108 0 0 0 16 Maturity shift -2,172 -2,450 -2,371 -54 -16 42 17 Exchange 2,128 2,950 2,750 600 0 600 1 1 8 9 Ov G G er r r o o 1 s s 0 s s p s y a u e l a r e c r s s h ases 307 0 383 0 441 0 0 0 0 0 20 Maturity shift -601 -904 -275 -30 -384 21 Exchange 234 1,962 2,052 493 405 All maturities 22 Gross purchases 19,870 22,540 23,476 2,976 2,343 7,321 274 2,099 0 23 Gross sales 8,369 3,420 7,553 214 554 0 417 0 0 24 Redemptions 3,000 2,487 7,700 400 500 0 800 0 200 Matched transactions 25 Gross sales 543,804 578,591 808,986 57,076 54,718 65,845 78,870 81,016 60,980 26 Gross purchases 543,173 576,908 810,432 57,283 57,288 64,001 77,597 83,782 59,165 Repurchase agreements 27 Gross purchases 130,774 105,971 139,441 19,584 4,922 11,540 21,716 2,801 10,486 28 Gross sales 130,286 108,291 139,019 17,077 7,429 4,088 29,168 2,801 10,486 29 Net change in U.S. government securities 8,358 12,631 5,077 1,351 12,931 -9,668 4,865 -2,015 FEDERAL AGENCY OBLIGATIONS Outright transactions 0 0 0 30 Gross purchases 0 0 0 31 Gross sales 32 Redemptions 189 292 256 Repurchase agreements 33 Gross purchases 18,957 8,833 1,205 2,428 445 983 1,336 2,439 34 Gross sales 18,638 9,213 817 2,048 825 452 1,867 2,439 35 Net change in federal agency obligations . 130 -672 132 363 531 -540 -60 -46 BANKERS ACCEPTANCES 36 Repurchase agreements, net 1,285 -1,062 -418 0 0 0 0 0 0 37 Total net change in System Open Market Account 9,773 10,897 6,116 5,440 971 13,462 -10,208 4,805 -2,061 NOTE: Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • December 1985 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1985 1985 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 July Aug. Sept. Consolidated condition statement ASSETS 1 Gold certificate account 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 487 469 475 499 510 486 484 518 Loans 4 To depository institutions 1,098 967 1,381 1,190 2,121 1,567 22,,006688 22,,552200 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 00 00 00 00 00 00 00 00 Federal agency obligations 7 Bought outright 8,227 8,227 8,227 8,227 8,227 88,,225577 88,,222277 88,,222277 8 Held under repurchase agreements 354 1,195 957 0 625 0 0 0 U.S. government securities Bought outright 9 Bills 77,113 79,676 78,653 79,155 79,979 7766,,228866 7799,,228888 7799,,223311 1100 66,422 66,422 66,422 66,422 66,422 67,066 66,422 66,072 1111 24,399 24,399 24,399 24,399 24,399 23,743 24,399 24,399 12 Total bought outright1 167,934 170,497 169,474 169,976 170,800 167,095 170,109 169,702 13 Held under repurchase agreements 1,928 1,952 4,430 0 3,846 0 0 0 14 Total U.S. government securities 169,862 172,449 173,904 169,976 174,646 167,095 170,109 169,702 15 Total loans and securities 179,541 182,838 184,469 179,393 185,619 176,919 180,404 180,449 16 Cash items in process of collection 5,835 9,919 6,429 7,447 6,051 7,394 5,445 4,297 17 Bank premises 590 589 590 594 595 588 590 594 Other assets 18 Denominated in foreign currencies2 4,508 4,591 4,601 4,604 4,681 44,,449933 44,,559911 44,,996633 19 All other3 7,141 7,354 7,539 7,505 7,799 9,494 7,260 8,073 20 Total assets 213,810 221,468 219,811 215,750 220,963 215,082 214,482 214,602 LIABILITIES 21 Federal Reserve notes 171,797 173,664 173,382 172,376 171,433 171,286 172,712 171,476 Deposits 22, To depository institutions 27,184 29,973 30,801 25,581 28,991 2266,,225533 2255,,666655 2277,,116622 23 U.S. Treasury—General account 2,561 2,598 2,918 4,070 8,009 2,656 3,656 4,174 24 Foreign—Official accounts 188 185 202 234 230 274 223 535 25 Other 423 428 437 684 401 323 389 497 26 Total deposits 30,356 33,184 34,358 30,569 37,631 29,506 29,933 32,368 2.7 Deferred availability cash items 5,663 8,509 5,879 6,727 5,826 7,965 5,597 4,228 28 Other liabilities and accrued dividends4 2,182 2,242 2,381 2,259 2,244 2,212 2,232 2,272 29 Total liabilities 209,998 217,599 216,000 211,931 217,134 210,969 210,474 210,344 CAPITAL ACCOUNTS 30 Capital paid in 1,748 1,747 1,748 1,749 1,752 1,741 1,748 1,753 31 1,626 1,626 1,626 1,626 1,626 1,626 1,626 1,626 32 Other capital accounts 438 496 437 444 451 746 634 879 33 Total liabilities and capital accounts 213,810 221,468 219,811 215,750 220,963 215,082 214,482 214,602 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 124,059 127,611 128,208 129,130 128,042 125,643 112244,,440044 112266,,112288 Federal Reserve note statement 204,535 204,866 205,308 205,353 205,595 201,968 204,511 205,459 LESS: Held by bank 32,738 31,202 31,926 32,977 34,162 30,682 31,799 33,983 Federal Reserve notes, net 171,797 173,664 173,382 172,376 171,433 171,286 172,712 171,476 Collateral held against notes net: Gold certificate account 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 Special drawing rights certificate account 4,6180 4,6180 4,6180 4,6180 4,6180 4,6180 4,6180 4,6180 Other eligible assets U.S. government and agency securities .. 156,089 157,956 157,674 156,668 155,725 155,578 157,004 155,768 42 Total collateral. 171,797 173,664 173,382 172,376 171,433 171,286 172,712 171,476 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 1985 1985 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 July 31 Aug. 30 1 Loans—Total 1,098 967 1,381 1,190 2,121 1,567 2,153 2 3 W 16 i t d h a in y s 1 t 5 o d 9 a 0 y s d ays 1,07 1 9 0 9 8 9 7 2 5 0 1,29 8 2 9 0 1,1 2 6 0 8 2 2,06 5 3 0 8 1,49 7 4 0 3 2,07 7 4 0 9 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 9 U.S. government securities—Total 169,862 172,449 173,904 169,976 174,646 167,095 170,109 10 Within 15 days1 10,845 11,370 10,031 8,677 12,241 9,291 6,209 1 1 1 1 1 1 2 3 4 5 O 9 O O 1 1 6 v v v e e e d d r r r a a y y 5 1 1 s s 0 y y t t e e y o o a a e r r 9 a 1 s r 0 t y s o t e d o a 5 a r y 1 y s 0 e y a e rs a rs 3 5 2 3 1 4 2 1 5 4 , , , , , 6 7 4 2 8 8 7 6 3 6 0 3 3 5 6 3 5 2 3 1 7 2 1 5 4 , , , , , 5 0 4 1 8 2 7 6 4 6 9 8 3 3 6 3 5 2 3 1 4 8 1 5 4 , , , , , 1 2 4 1 8 7 2 6 4 6 3 8 3 3 6 3 5 3 2 1 5 4 1 5 4 , , , , , 5 2 4 1 8 5 7 6 4 6 4 3 3 3 6 3 5 2 3 1 6 4 1 5 4 , , , , , 5 4 4 1 8 1 2 6 4 6 0 3 3 3 6 4 3 3 2 1 9 5 6 0 5 , , , , , 8 6 3 8 1 0 3 5 1 9 9 1 5 3 6 3 5 2 3 1 5 6 1 5 4 , , , , , 4 8 4 2 8 3 9 3 6 6 8 8 5 3 6 2 2 2 1 1 1 1 2 0 1 7 8 6 9 Fe O O O 9 W 1 d 1 6 e v v v i r e e t e d d a h r r r a a l i y n y 5 1 1 a s s 0 g y y 1 t e t y e e 5 o o n a a e d c r r 9 a 1 y s a 0 r t y s y o t d o e o s 1 a 5 a b r y 1 l y i s 0 g e a y a t r e i s o a n rs s —Total. 8 4 1 1 , , , , 5 0 4 8 3 5 2 8 7 7 1 6 9 5 1 0 6 3 6 9 7 9 4 1 1 1 , , , , , 4 0 8 5 3 2 2 2 3 5 8 9 9 4 2 7 9 5 5 9 7 9 4 1 1 1 , , , , , 1 0 6 7 0 3 2 8 9 9 2 1 6 9 4 1 1 2 5 6 9 8 4 1 1 , , , , 2 0 7 5 2 3 2 2 9 2 4 0 9 6 7 1 2 4 5 9 6 8 4 1 1 , , , , 8 1 7 7 5 2 3 5 0 6 2 6 8 9 2 9 2 9 7 6 9 8 4 1 1 , , , , 2 0 6 7 3 2 1 5 8 8 3 4 9 2 7 3 0 5 0 9 0 8 4 1 1 , , , , 2 0 4 8 2 3 2 2 1 7 7 5 1 9 7 3 0 5 7 3 9 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • December 1985 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1985 - 1981 1982 1983 1984 Dec. Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug/ Sept. Seasonally adjusted ADJUSTED FOR 1 Total reserves2 32.10 34.28 36.14 39.08 40.43 40.47 40.71 41.32 42.18 42.61 43.19 43.51 2 Nonborrowed reserves 31.46 33.65 35.36 35.90 39.14 38.88 39.39 39.99 40.97 41.50 42.12 42.22 3 Nonborrowed reserves plus extended credit3 31.61 33.83 35.37 38.50 39.95 39.94 40.26 40.52 41.64 42.01 42.69 42.87 4 Required reserves 31.78 33.78 35.58 38.23 39.53 39.71 39.97 40.52 41.27 41.75 42.37 42.84 5 Monetary base4 158.10 170.14 185.49 199.03 202.05 202.95 203.56 205.35 207.66 208.83 211.15 212.39 Not seasonally adjusted 6 Total reserves2 32.82 35.01 36.86 40.13 39.88 40.07 41.25 40.64 41.96 42.41 42.60 43.22 7 Nonborrowed reserves 32.18 34.37 36.09 36.94 38.59 38.47 39.93 39.31 40.75 41.30 41.52 41.93 8 Nonborrowed reserves plus extended credit3 32.33 34.56 36.09 39.55 39.39 39.53 40.80 39.84 41.42 41.81 42.09 42.59 9 Required reserves 32.50 34.51 36.30 39.28 38.97 39.30 40.52 39.84 41.05 41.55 41.77 42.55 10 Monetary base4 160.94 173.17 188.76 202.02 199.54 200.86 203.42 204.54 207.99 210.26 211.23 211.82 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 41.92 41.85 38.89 40.70 40.27 40.49 41.65 41.05 42.35 42.80 42.96 44.45 12 Nonborrowed reserves 41.29 41.22 38.12 37.51 38.98 38.90 40.33 39.72 41.15 41.70 41.89 43.16 13 Nonborrowed reserves plus extended credit3 41.44 41.41 38.12 40.09 39.83 40.03 40.77 40.45 41.88 42.23 42.50 43.83 14 Required reserves 41.61 41.35 38.33 39.84 39.37 39.73 40.91 40.25 41.45 41.95 42.14 43.78 15 Monetary base4 170.47 180.52 192.36 202.59 199.94 201.29 203.81 204.94 208.39 210.65 211.60 213.05 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 1985 IItteemm11 D 19 e 8 c 1 . D 19 e 8 c 2 . D 19 e 8 c 3 . D 19 e 8 c 4 . June July Aug.' Sept. Seasonally adjusted 1 Ml 441.8 480.8 528.0 558.5 591.2 595.8 605.9 611.7 ? M2 1,794.4 1,954.9 2,188.8 2,371.7 2,473.0' 2,490.5' 2,513.7 2,528.4 2,235.8 2,446.8 2,701.8 2,995.0 S.IOS.O' 3,114.2' 3,137.8 3,163.4 4 L 2,596.5 2,854.7 3,168.8 3,539.4 3,669.1 3,686.5 * n.a. 5 Debt 4,255.8' 4,649.8' 5,177.2' 5,927.1' 6,287.3' 6,349.7' 6,410.3 n.a. Ml components Currency2 124.0 134.3 148.4 158.7 164.5 165.4 167.1 116677..99 7 Travelers checks3 4.4 4.3 4.9 5.2 5.7 5.9 5.9 5.9 8 Demand deposits4 235.2 238.6 243.5 248.6 260.7 260.9 264.0 266.8 9 Other checkable deposits5 78.2 103.5 131.3 146.0 160.3 163.6 168.9 171.2 Nontransactions components 1100 In M26 1,352.6 1,474.0 1,660.8 1,813.3 1,881.8' 11,,889944..88'' 11,,990077..88 11,,991166..77 1111 In M3 only7 441.4 492.0 512.9 623.3 630.0 623.7' 624.1 635.0 Savings deposits9 1? Commercial Banks 158.6 116633..55 133.4 122.6 112211..99 112233..22 112244..22 112244..66 13 Thrift institutions 185.8 194.4 173.6 166.0 170.2 172.8 176.1 177.0 Small denomination time deposits9 14 Commerical Banks 347.8 379.8 350.7 387.0 390.7 388.4 384.1 338822..88 15 Thrift institutions 475.8 471.7 433.8 498.6 503.5 500.2 494.5 492.3 Money market mutual funds 16 General purpose and broker/dealer 150.6 185.2 138.2 167.5 175.4 175.8 176.7 117766..44 17 Institution-only 38.0 51.1 43.2 62.7 67.1 65.0' 63.6 62.3 Large denomination time deposits10 18 Commercial Banks11 247.5 262.0 228.9 264.4 267.7 265.7' 267.6 227722..66 19 Thrift institutions 54.6 66.2 101.9 151.8 156.4 154.2 153.7 155.5 Debt components 70 Federal debt 825.9 979.2' 1,173.0 1,367.3 11,,445599..55 11,,447788..99'' 11,,449955..88 n.a. 21 Non-federal debt 3,429.9' 3,670.6' 4,004.3 4,559.8' 4,827.8' 4,870.7' 4,914.6 n.a. Not seasonally adjusted ?? 452.2 491.8 539.7 570.4 592.3 599.1 601.5 608.4 73 M2 1,798.7 1,959.6 2,194.0 2,376.7 2,476.7' 2,496.6' 2,507.0 2,517.0 74 M3 2,243.4 2,454.4 2,709.2 3,002.1 3,105.7' 3,116.4' 3,132.6 3,151.6 ?S L 2,604.7 2,859.5 3,172.7 3,540.9 3,672.4 3,688.5 * n.a. 26 Debt 4,251. 1' 4,644.2' 5,171.6 5,920.9' 6,262.4' 6,326.4' 6,388.2 n.a. Ml components 77 Currency2 126.2 136.5 150.5 160.9 165.2 166.8 167.7 116677..66 78 Travelers checks3 4.1 4.0 4.6 4.9 6.0 6.6 6.5 6.2 79 Demand deposits4 243.4 247.2 252.2 257.4 259.8 262.2 260.9 265.4 30 Other checkable deposits5 78.5 104.1 132.4 147.2 161.3 163.5 166.4 169.2 Nontransactions components 31 M26 1,346.5 1,467.8 1,654.2 1,806.3 1,884.4' 1,897.4' 1,905.4 11,,990088..66 32 M3 only7 444.7 494.8 515.2 625.4 629.0 619.9' 625.7 634.6 Money market deposit accounts 33 Commercial banks * 26.3 230.5 267.1 307.3 331133..00 317.7 332211..11 34 Thrift institutions .0 16.9 148.7 147.9 167.8 171.0 174.1 175.1 Savings deposits8 35 Commercial Banks 157.5 162.1 113322..22 121.4 112233..22 112244..44 112244..00 112233..77 36 Thrift institutions 184.7 193.2 172.5 164.9 172.6 175.1 175.5 175.9 Small denomination time deposits9 37 Commercial Banks 347.7 380.1 351.1 387.6 386.4 386.4 385.3 385.2 38 Thrift institutions 475.5 471.7 434.2 499.4 496.8 497.6 494.2 493.0 Money market mutual funds 39 General purpose and broker/dealer 150.6 185.2 138.2 167.5 175.4 175.8 176.7 176.4 40 Institution-only 38.0 51.1 43.2 62.7 67.1 65.0' 63.6 62.3 Large denomination time deposits10 41 Commercial Banks" 251.7 265.2 230.8 265.9 267.3 264.9' 269.4 274.3 42 Thrift institutions 54.4 65.9 101.4 151.1 156.0 154.3 155.1 156.0 Debt components 43 Federal debt 823.0 976.4 11,,117700..22 1,364.7 1,457.9 1,475.8 1,495.8 n.a. 44 Non-federal debt 3,428.2' 3,667.7' 4,001.4 4,556.2' 4,804.5' 4,850.6' 4,892.4 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • December 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. 1985 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr Mar. Apr. May June July Aug. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 90,914.4 109,642.3 128,440.8 139,608.3 156,513.2 149,252.8 146,714.9 157,128.3 147,455.5 2 Major New York City banks 37,932.9 47,769.4 57,392.7 62,523.7 70,621.4 66,394.3 66,615.5 69,952.8 65,645.6 3 Other banks 52,981.5 61,873.1 71,048.1 77,084.6 85,891.8 82,858.4 80,099.4 87,175.5 81,809.9 4 ATS-NOW accounts3 1,036.2 1,405.5 1,588.7 1,567.0 1,689.3 1,771.1 1,614.3 1,870.1 2,008.8 5 Savings deposits4 720.3 741.4 633.1 539.2 589.0 636.4 544.4 584.3 550.7 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 324.2 379.7 434.4 456.3 515.4 484.6 471.4 506.4 469.6 7 Major New York City banks 1,287.6 1,528.0 1,843.0 1,967.0 2,183.9 2,079.6 2,104.9 2,131.4 1,965.4 8 Other banks 211.1 240.9 268.6 281.1 316.5 300.2 286.5 314.2 291.5 9 ATS-NOW accounts3 14.5 15.6 15.8 14.4 15.4 16.1 14.4 16.4 17.1 10 Savings deposits4 4.5 5.4 5.0 4.6 5.0 5.4 4.6 4.9 4.6 DEBITS TO Not seasonally adjusted Demand deposits2 11 All insured banks 91,031.8 109,517.6 128,059.1 143,154.3 151,536.1 151,342.3 148,651.5 157,898.2 152,985.1 12 Major New York City banks 38,001.0 47,707.4 57,282.4 64,188.9 67,422.3 67,249.3 67,999.4 70,496.1 68,401.8 13 Other banks 53,030.9 64,310.2 70,776.9 78,965.4 84,113.8 84,093.0 80,652.1 87,402.1 84,583.3 14 ATS-NOW accounts3 11,,002277..11 1,397.0 1,579.5 1,624.7 1,946.1 1,775.5 1,744.0 1,807.5 1,770.5 15 MMDA5 567.4 848.8 1,032.5 1,221.4 1,146.7 1,077.9 1,183.3 1,201.2 16 Savings deposits4 720.0 742.0 632.9 552.9 644.4 621.1 549.7 586.0 538.4 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 325.0 379.9 433.5 480.9 498.1 505.5 480.6 509.5 499.3 18 Major New York City banks 1,295.7 1,510.0 1,838.6 1,990.7 2,138.6 2,205.8 2,125.9 2,185.9 2,189.4 19 Other banks 211.5 240.5 267.9 297.5 308.4 312.7 290.8 314.8 307.4 20 ATS-NOW accounts3 14.4 15.5 15.7 14.9 17.2 16.2 15.5 15.9 15.3 71 MMDA3 2.8 3.5 3.5 4.2 3.9 3.5 3.5 3.8 22 Savings deposits4 4.5 5.4 5.0 4.7 5.4 5.2 4.6 4.8 4.5 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 • December 1985 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1984 1985 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted 1 Total loans and securities2 1,682.8 1,701.0 1,714.8 1,724.0 1,742.3 1,758.9 1,765.8 1,785.3 1,799.1 1,814.3 1,824.8' 1,838.0 2 U.S. government securities 257.0 259.4 260.2 260.1 265.8 266.9 261.1 265.9 266.6 271.0 270.9 272.5 3 Other securities 141.5 141.1 139.9 142.4 140.8 138.7 140.1 142.1 144.5 145.5 148.2 151.1 4 Total loans and leases2 1,284.3 1,300.6 1,314.7 1,321.5 1,335.6 1,353.3 1,364.6 1,377.3 1,388.0 1,397.8 1,405.7' 1,414.4 5 Commercial and industrial 463.0 467.1 468.1 468.4 473.6' 480.8' 481.3' 483.7' 483.9' 484.4' 485.7' 487.4 6 Bankers acceptances held3.. 5.6 6.0 5.2 5.0 6.1 6.4 5.4 4.9 4.7 5.1 5.0 4.7 7 Other commercial and industrial 457.3 461.1 462.9 463.4 467.4' 474.4' 475.9' 478.7' 479.2' 479.3' 480.7' 482.8 8 U.S. addressees4 446.7 450.7 453.3 453.7 457.0 463.7 465.2 468.7 469.7 469.9 471.2' 473.7 9 Non-U.S. addressees4.... 10.6 10.3 9.6 9.7 10.4' 10.7' 10.7' 10.0' 9.5 9.4' 9.5 9.1 10 Real estate 367.7 371.8 375.6 377.9 382.1 385.8 389.9 393.8 397.4 401.4 405.3 408.3 11 Individual 243.5 246.7 251.0 254.6 257.7 261.9 265.5 268.7 271.5 274.9 277.4 279.3 12 Security 30.3 30.2 31.4' 31.9 31.6 32.8 35.1 37.5 40.0 40.3 36.7 38.1 13 Nonbank financial institutions 31.1 31.2 31.3' 31.2 30.9 30.6 31.2 31.5 31.2 31.6 32.3 32.5 14 Agricultural 40.6 40.4 40.3 39.9 39.6 39.5 39.4 39.4 39.4 39.6 39.6 40.1 15 State and political subdivisions 41.4 42.3 44.2 47.0' 46.7' 46^ 47.1 47.5 47.4 47.8' 48.7 48.7 16 Foreign banks 11.7 11.9 11.5 11.4 11.4 11.1 10.8 10.5 10.3 10.4 10.1 9.9 17 Foreign official institutions ... 8.5 8.4 8.3 7.9 7.9 7.7 7.8 7.8 7.6 7.2 6.5' 6.8 18 Lease financing receivables... 15.1 15.3 15.5 15.6 15.8 16.1 16.4 16.7 16.9 17.3 17.5 17.6 19 All other loans 31.5 35.3 37.2 35.7' 38.4' 39^ 40.1' 40.1' 42.3' 43.1' 45.8' 45.8 Not seasonally adjusted 20 Total loans and securities2 1,684.0 1,701.9 1,725.8 1,732.0 1,740.4 1,755.0 1,766.0 1,781.4 1,800.0 1,807.9 1,818.1' 1,836.4 21 U.S. government securities 254.1 255.2 256.9 260.1 266.8 269.0 266.6 268.0 270.3 270.8 269.3 270.2 2 2 2 i T O o th ta e l r l s o e a c n u s r i a t n ie d s leases2 1,2 1 8 4 9 0 . . 0 9 1,3 1 0 4 5 1 . . 5 2 1,3 1 2 4 7 1 . . 4 5 1,3 1 2 4 8 3 . . 7 3 1,3 1 3 4 2 1 . . 6 0 1,3 1 4 3 7 8 . . 1 9 1,3 1 5 3 9 9 . . 7 8 1,3 1 7 4 0 2 . . 7 7 1,3 1 8 4 5 4 . . 5 1 1,3 1 9 4 2 4 . . 9 1 1,4 1 0 47 1 . . 7 1 ' 1,4 1 1 5 5 0 . . 8 4 24 Commercial and industrial.... 463.8 467.3 471.2 470.3 473.1' 480.3' 481.5' 482.2' 482.4' 483.5' 483.6 487.4 25 Bankers acceptances held3.. 5.5 5.9 5.7 5.1 6.0 66..33 5.5 44..99 4.8 55..00 44..99 44..66 26 Other commercial and industrial 458.3 461.4 465.5 465.2 467.1' 474. (K 476. (y 477.3' 477.6' 478.5' 478.7' 482.8 22 2 77 8 N U o .S n . - U ad .S d . r e a ss d e d e r s e 4 ssees4.... 44 1 7 1. . 1 3 ' 45 1 0 1 . . 5 0 45 1 5 0 . . 0 5 45 9 5. . 4 8 45 9 7. . 2 9 ' 46 1 3 0 . . 9 1 ' 466 9 . . 1 9 ' 46 9 7. . 8 6 ' 46 9 8. . 3 3 ' 46 9 9. . 0 4 ' 46 9 9. . 2 5 47 9 3 . . 4 4 29 Real estate 368.9 372.8 376.2 378.6 381.7 384.7 388.6 392.8 396.9 400.8 405.5 409.5 30 Individual 245.3 248.4 254.0 257.0 257.4 259.7 263.2 266.5 269.6 273.2 277.2 280.4 31 Security 30.2 31.7 35.2 33.0 30.8 32.2 35.0 36.0 3399..99 3388..33 3355..88 3366..77 32 Nonbank financial institutions 31.0 31.C 31.5 31.2' 30.7 30.6 31.3 31.3 31.2 31.7 32.4 32.6 3333 Agricultural 41.2 40.5 40.0 39.3 38.8 38.6 38.8 39.3 3399..99 4400..44 4400..55 4400..99 34 State and political subdivisions 41.4 42.3 44.2 47.(K 46.7' 46.9' 47.1 47.5 47.4 47.8' 48.7 48.7 3355 Foreign banks 12.0 12.2 12.2 11.7 11.4 10.9 10.4 10.3 9.9 10.2 9.9 10.0 36 Foreign official institutions ... 8.5 8.4 8.3 7.9 7.9 7.7 7.8 7.8 7.6 7.2 6.5' 6.8 37 Lease financing receivables... 15.0 15.1 15.5 15.8 16.0 16.3 16.4 16.7 16.9 17.2 17.4' 17.5 38 All other loans 31.7 35.5 39.2 37.0 38.2' 39.1' 39.6' 40.3' 43.8' 42^ 43.7' 45.3 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. Includes nonfinancial commercial paper held. reports. For foreign-related institutions, data are averages of month-end estimates 4. United States includes the 50 states and the District of Columbia. based on weekly reports from large U.S. agencies and branches and quarterly NOTE. These data also appear in the Board's G.7 (407) release. For address, see reports from all U.S. agencies and branches, New York investment companies inside front cover. majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1984 1985 SSoouurrccee Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Total nondeposit funds 1 Seasonally adjusted2 107.9 112.0 108.5 102.5 113.9 116.9 105.2 112.0 112.5 108.5 112.8 116.1 2 Not seasonally adjusted 109.6 117.5 111.1 104.8 117.4 119.4 108.3 117.2 114.8 107.3 114.6 116.2 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 141.4 145.0 140.5 138.8 146.8 147.2 138.8 142.0 146.7 146.9 144.1 146.3 4 Not seasonally adjusted 143.1 150.5 143.1 141.1 150.2 149.7 141.9 147.2 149.0 145.8 146.0 146.4 5 Net balances due to foreign-related institutions, not seasonally adjusted -33.5 -33.1 -32.0 -36.3 -32.8 -30.3 -33.6 -30.0 -34.2 -38.5 -31.3 -30.2 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted4 -34.2 -32.7 -31.4 -34.8 -31.6 -29.5 -32.4 -29.6 -32.5 -38.4 -32.9 -30.7 7 Gross due from balances 69.8 68.3 69.0 71.4 70.5 71.4 74.9 74.6 76.6 79.3 76.0 74.8 8 Gross due to balances 35.6 35.6 37.6 36.6 38.9 41.9 42.5 45.0 44.1 40.9 43.1 44.1 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted5 .7 -.4 -.6 -1.5 -1.2 -.8 -1.1 -.5 -1.6 .0 1.6 .5 10 Gross due from balances 50.8 50.7 52.0 53.1 54.1 53.4 51.8 52.4 53.8 54.9 55.3 56.1 11 Gross due to balances 51.5 50.4 51.4 51.6 52.8 52.7 50.7 52.0 52.1 54.9 56.9 56.6 Security RP borrowings 12 Seasonally adjusted® 82.0 84.0 81.1 82.3 90.1 92.0 85.4 85.5 86.5 87.1 87.4 90.8 13 Not seasonally adjusted 81.2 87.0 81.1 82.2 91.1 92.0 86.0 88.3 86.3 83.4 86.8 88.4 U.S. Treasury demand balances7 14 Seasonally adjusted 8.0 17.3 16.1 14.7 13.0 11.8 14.6 22.6 17.4 24.9 16.7 15.3 15 Not seasonally adjusted 11.0 10.4 12.5 18.5 15.8 12.8 15.4' 20.9 14.9 23.1 13.4 16.8 Time deposits, $100,000 or more8 16 Seasonally adjusted 321.4 323.0 325.8 324.8 325.4 329.9 332.6 331.2 326.8 323.2 325.0 330.2 17 Not seasonally adjusted 322.2 322.9 327.3 325.6 324.9 330.3 330.1 329.1 326.4 322.3 326.8 331.8 1. Commercial banks are those in the 50 states and the District of Columbia banks, term federal funds, overdrawn due from bank balances, loan RPs, and with national or state charters plus agencies and branches of foreign banks, New participations in pooled loans. York investment companies majority owned by foreign banks, and Edge Act 4. Averages of daily figures for member and nonmember banks. corporations owned by domestically chartered and foreign banks. 5. Averages of daily data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 6. Based on daily average data reported by 122 large banks. nonbanks and not seasonally adjusted net Eurodollars. Includes averages of 7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at Wednesday data for domestically chartered banks and averages of current and commercial banks. Averages of daily data. previous month-end data for foreign-related institutions. 8. Averages of Wednesday figures. 3. Other borrowings are borrowings on any instrument, such as a promissory NOTE. These data also appear in the Board's G. 10 (411) release. For address see note or due bill, given for the purpose of borrowing money for the banking inside front cover. business. This includes borrowings from Federal Reserve Banks and from foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • December 1985 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars 1984 1985 AAccccoouunntt Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July' Aug. ALL COMMERCIAL BANKING INSTITUTIONS' 1 Loans and securities 1,822.7 1,822.7 1,864.0 1,853.8 1,873.4 1,880.5 1,895.9 1,905.1 1,923.5 1,942.2 1,946.4 2 Investment securities 375.2 374.4 377.5 381.0 382.0 383.3 383.4 389.8 391.6 391.9 393.3 3 U.S. government securities 241.2 240.4 242.5 244.9 248.0 250.9 250.0 254.0 254.9 255.8 253.7 4 Other 134.0 133.9 134.9 136.1 134.1 132.5 133.4 135.8 136.7 136.1 139.5 5 Trading account assets 22.5 21.9 22.9 24.2 27.6 23.7 23.5 23.5 23.1 22.2 24.3 6 Total loans 1,424.9 1,426.4 1,463.7 1,448.7 1,463.7 1,473.5 1,489.0 1,491.8 1,508.7 1,528.1 1,528.9 7 Interbank loans 126.1 122.6 126.9 125.2 128.6 125.9 130.7 123.8 122.8 132.7 128.3 8 Loans excluding interbank 1,298.8 1,303.8 1,336.8 1,323.4 1,335.1 1,347.6 1,358.3 1,368.0 1,385.9 1,395.4 1,400.6 9 Commercial and industrial 467.7 468.7 476.8 469.8 476.5 482.7 481.5 482.8 483.6 486.1 484.8 10 Real estate 369.8 374.4 377.7 380.2 382.5 386.0 389.8 394.9 398.8 403.3 407.5 11 Individual 247.1 249.6 255.5 257.4 258.1 260.4 264.2 267.3 270.9 274.8 278.8 12 All other 214.2 211.1 226.8 216.1 218.0 218.4 222.8 223.0 232.6 231.2 229.6 13 Total cash assets 188.0 188.4 201.9 187.8 189.2 183.4 187.3 202.0 190.1 197.2 188.4 14 Reserves with Federal Reserve Banks 18.1 20.4 20.5 20.9 19.6 19.8 22.9 20.7 21.6 21.0 24.5 15 Cash in vault 21.4 23.9 23.3 21.9 21.8 21.3 21.3 23.3 22.2 22.0 22.6 16 Cash items in process of collection ... 70.2 66.5 75.9 66.9 68.8 63.9 64.1 76.5 68.4 71.3 62.4 17 Demand balances at U.S. depository institutions 32.0 30.9 34.5 30.9 32.2 31.6 30.1 35.1 31.2 32.5 30.6 18 Other cash assets 46.3 46.7 47.7 47.3 46.7 46.8 48.9 46.5 46.7 50.5 48.3 19 Other assets 201.6 190.1 196.8 191.7 195.4 188.5 188.7 183.4 189.4 195.2 179.1 20 Total assets/total liabilities and capital... 2,212.2 2,201.2 2,262.6 2,233.3 2,257.9 2,252.4 2,272.0 2,290.5 2,303.0 2,334.7 2,313.9 21 Deposits 1,578.9 1,578.2 1,631.2 1,604.3 1,617.8 1,625.6 1,636.4 1,659.2 1,657.1 1,682.2 1,673.7 22 Transaction deposits 462.7 453.1 491.1 456.8 459.2 457.6 465.3 479.9 473.6 492.6 475.2 23 Savings deposits 371.1 378.1 386.3 400.0 406.8 409.8 409.4 418.0 424.8 433.2 435.3 24 Time deposits 745.0 747.0 753.8 747.5 751.8 758.2 761.7 761.3 758.7 756.4 763.1 25 Borrowings 314.3 298.8 304.1 306.5 308.8 300.6 309.8 304.9 315.4 319.4 306.1 26 Other liabilities 174.1' 179.4 181.1 173.7 182.2 176.9 175.3 175.6 179.3 181.0 181.4 27 Residual (assets less liabilities) 144.9* 144.8 146.2 148.8 149.2 149.2 150.5 150.8 151.3 152.1 152.7 MEMO 28 U.S. government securities (including trading account) 256.3 255.2 256.9 261.9 269.5 268.4 266.4 268.9 270.6 269.7 267.9 29 Other securities (including trading account) 141.5 141.1 143.4 143.2 140.2 138.7 140.6 144.3 144.2 144.5 149.7 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 1,728.5 1,726.7 1,765.4 1,759.6 1,774.6 1,781.9 1,796.4 1,809.2 1,825.3 1,843.0 1,846.5 31 Investment securities 367.9 367.5 370.5 373.7 374.7 376.6 376.7 383.3 384.6 384.7 386.0 32 U.S. government securities 236.1 235.8 237.9 240.2 243.2 246.6 246.0 250.3 250.9 252.0 250.0 33 Other 131.8 131.6 132.6 133.5 131.5 130.0 130.6 133.0 133.7 132.7 136.0 34 Trading account assets 22.5 21.9 22.9 24.2 27.6 23.7 23.5 23.5 23.1 22.2 24.3 35 Total loans 1,338.0 1,337.3 1,372.1 1,361.7 1,372.3 1,381.6 1,396.2 1,402.5 1,417.6 1,436.1 1,436.2 36 Interbank loans 103.3 96.1 102.8 100.6 100.9 99.9 103.1 100.4 100.3 109.7 104.3 37 Loans excluding interbank 1,234.7 1,241.2 1,269.3 1,261.2 1,271.4 1,281.6 1,293.1 1,302.1 1,317.3 1,326.4 1,331.9 38 Commercial and industrial 423.0 424.7 430.2 425.7 431.5 435.5 436.0 435.9 435.3 437.4 435.6 39 Real estate 365.5 369.1 372.1 375.1 377.3 380.9 384.5 389.4 393.3 397.7 401.9 40 Individual 246.9 249.4 255.3 257.2 257.9 260.2 263.9 267.1 270.6 274.5 278.6 41 All other 199.3 198.0 211.7 203.1 204.8 205.0 208.7 209.6 218.1 216.7 215.9 42 Total cash assets 176.6 176.8 190.3 175.7 177.8 172.5 175.7 191.0 179.0 185.0 176.3 43 Reserves with Federal Reserve Banks 17.1 19.7 19.2 20.2 18.7 19.2 22.3 19.6 20.9 20.4 23.7 44 Cash in vault 21.4 23.9 23.3 21.9 21.8 21.3 21.3 23.2 22.2 22.0 22.6 45 Cash items in process of collection ... 69.9 66.3 75.6 66.7 68.5 63.7 63.9 76.2 68.1 71.0 62.1 46 Demand balances at U.S. depository institutions 30.7 29.4 32.9 29.5 30.9 30.3 28.7 33.7 29.7 31.2 28.9 47 Other cash assets 37.5 37.5 39.3 37.5 37.9 38.0 39.5 38.2 38.0 40.3 39.0 48 Other assets 147.9 139.7 142.1 137.6 139.0 137.2 137.6 131.6 137.8 143.7 129.5 49 Total assets/total liabilities and capital... 2,053.1 2,043.2 2,097.8 2,072.9 2,091.4 2,091.7 2,109.7 2,131.8 2,142.1 2,171.7 2,152.4 50 Deposits 1,539.1 1,538.0 1,587.8 1,561.8 1,573.7 1,580.5 1,591.7 1,616.0 1,614.5 1,639.5 1,628.7 51 Transaction deposits 456.2 446.8 484.5 450.6 452.9 451.4 458.9 473.5 467.3 486.3 468.7 52 Savings deposits 370.1 377.1 385.2 398.9 405.6 408.6 408.3 416.8 423.5 431.8 434.0 53 Time deposits 712.8 714.1 718.1 712.3 715.2 720.5 724.5 725.8 723.7 721.4 726.0 54 Borrowings 251.3 240.9 243.1 246.5 247.0 239.9 247.9 245.6 253.3 256.0 246.9 55 Other liabilities 120.5 122.3 123.5 118.4 124.2 124.7 122.3 122.0 125.7 126.7 126.8 56 Residual (assets less liabilities) 142.1 142.0 143.4 146.1 146.5 146.6 147.8 148.1 148.6 149.4 150.0 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 the March 1985 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 1985 Account Aug. 7 Aug. 14 Aug. 21 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 1 Cash and balances due from depository institutions 86,622' 90,807' 85,928' 89,116' 107,631' 92,569 90,840 87,659 2 Total loans, leases and securities, net 847,188' 850,216' 853,679' 852,232' 864,881' 862,081 859,278 860,082 1 1 1 1 1 1 1 9 4 7 8 3 4 3 5 6 5 6 0 1 2 O O U t t . T T I I h h S n n r e r e . v O a v a S O O r r O T d d e e t t v v n t s a O O s i i r s h r e e e n e n e t t t a e n v c r e r m m g g a d r s e y u e s o i f e e r a a e r b n u i a n n y n i v c c a g o r t o n e t t e e r c y c i n d n e a o o a a a o t d s y e r a u c h u c c r p s e n c n r o c n c , y o a d l o o t r t o o e e l r c u u i s u u a s l g t o g s n e r n i n o r c h t s t t p a v s , a l o f e b i s r r v s y s a n e u e t m e b m t y s d e e a s i n a t t v t u o r i s r c s a i i k g t o y s e n , n s c a , y n b d y s m ec a u tu ri r t i i t e y s 8 7 5 2 3 4 4 3 1 1 5 4 1 0 5 5 4 1 0 3 5 5 3 4 , , , , , , , , , , , , , , 3 7 2 6 9 8 2 5 3 0 1 3 7 1 1 3 7 3 8 6 0 2 9 6 6 7 4 6 9 3 3 0 6 7 3 6 0 C 7 7 9 c ' ' ' 7 5 8 3 4 4 3 2 1 1 1 6 5 5 1 6 5 0 5 5 1 3 5 3 , , , , , , , , , , , , , , 2 1 4 8 5 7 9 3 2 2 6 8 2 9 4 2 8 2 6 3 4 8 5 2 3 2 6 7 9 6 6 6 7 7 3 0 3 C 8 8 7 7 ' ' ' ' ' 8 7 3 5 4 4 3 2 1 1 6 1 6 5 5 5 6 1 2 6 1 3 3 5 , , , , , , , , , , , , , , 0 0 4 5 2 0 3 3 4 5 3 3 5 5 3 1 6 3 9 0 0 9 5 2 4 2 3 4 2 3 1 2 0 2 1 7 8 7 C 2 8 5 ' ' ' ' 8 7 5 2 3 4 4 3 1 1 6 0 5 5 4 3 1 3 6 5 1 6 3 4 , , , , , , , . , , . . , , 3 3 6 8 7 3 7 4 0 5 0 1 7 1 2 8 3 2 3 7 4 3 4 3 8 3 0 1 8 0 6 5 3 2 7 C C C 6 9 9 C ' ' ' ' ' 7 8 3 5 4 4 3 2 1 1 1 5 5 6 2 1 6 5 4 8 0 5 7 3 , , , , , , , , , , , , , , 1 4 7 2 4 1 4 1 8 8 5 4 5 9 8 6 4 1 4 2 6 6 8 1 9 8 7 8 3 2 1 7 0 0 3 3 0 5 9 5 C 7 ' ' ' ' ' ' 8 7 3 5 4 4 3 2 1 1 5 5 5 0 2 7 6 6 1 5 3 0 3 6 , , , , , , , , , , , , , , 4 9 5 2 4 1 8 3 7 7 6 3 8 3 4 0 8 4 2 7 5 8 7 9 1 3 5 0 7 1 5 9 5 5 0 8 5 0 9 9 8 3 8 7 3 5 4 4 2 3 1 1 6 6 0 2 5 2 7 5 5 3 5 0 6 3 , , , , , , , , , , , , , , 2 1 4 1 2 1 9 0 3 8 4 3 0 8 6 9 4 7 6 1 8 8 4 7 9 0 0 7 1 2 3 0 2 7 6 2 3 4 0 6 5 9 8 7 3 5 4 4 3 1 1 1 6 0 7 5 5 6 3 5 7 2 3 7 3 9 , , , , , , , , , , , , , , 6 2 4 4 1 3 1 9 4 3 6 0 9 8 7 8 7 3 0 6 4 1 3 9 7 5 7 2 4 4 8 8 9 4 0 2 1 0 3 2 3 1 2 2 2 2 2 2 2 2 1 1 1 0 4 5 1 2 3 6 7 9 7 8 O Fe t T T O T h d o o o e e t C r h r o n c a e o l t l B o A o r o m h m n a a f l l e l N m U u b n o n m r o s n a s a k o . e S e t n n d e r n a h r k . c s s r - n c e s , i U d a s r i a b g a o d l a . r l r l S l c d o a e o d c . r b k n a 1 s e e a e d s a s s p n 2 e r d s s t k s i d e a n , s e r a n d g s e n c u s r d e s o s s t e s d r s e i a e 2 a s n a l d 2 l e r c s o m in m s e e r c c u i r a i l t i p es a per 2 6 6 2 2 3 5 5 7 5 5 4 1 2 4 5 4 0 2 3 9 2 5 1 , , , , , , , , , , , 6 8 7 9 5 9 3 5 4 9 3 1 0 9 8 1 0 3 4 6 5 5 5 3 2 7 3 9 8 5 6 2 1 ' ' ' ' ' 6 6 2 2 2 3 5 4 7 5 5 4 1 6 5 2 3 5 9 1 7 1 4 1 , , , , , , , , , , , 9 5 0 9 0 9 3 9 8 8 3 0 4 6 3 1 6 3 8 4 7 2 8 1 2 5 4 5 8 4 4 9 3 ' ' ' ' ' 6 2 6 2 2 4 5 3 6 4 5 7 1 7 2 4 8 3 3 3 1 1 5 2 , , , , , , , , , , , 2 7 4 8 8 9 9 2 8 2 4 2 7 1 2 9 6 4 6 0 5 0 6 6 1 7 2 5 2 0 3 4 2 ' ' 2 6 6 2 2 4 5 5 4 5 3 7 lL 6 9 1 2 4 4 4 9 5 4 , , , , , , , , , , 9 9 6 2 9 S 4 6 4 8 2 8 9 6 4 2 9 3 0 3 2 t 5 2 1 1 4 3 5 C 3 9 ^ ' ' ' ' ' 2 6 6 2 2 5 6 5 3 8 5 4 1 7 1 4 6 7 7 2 0 3 6 2 , , , , , , , , , , , 2 5 1 9 9 3 3 9 3 6 2 2 3 3 3 0 9 9 7 9 2 9 5 7 8 7 3 9 8 0 6 6 C ' ' ' 6 6 2 2 2 5 6 7 6 3 4 5 1 7 0 3 0 7 9 2 4 5 2 2 , , , , , , , , , , , 5 3 0 1 9 9 4 3 4 8 6 8 7 7 7 1 5 6 0 6 2 2 5 7 4 4 1 2 8 6 6 9 0 6 6 2 2 2 5 6 8 5 5 4 3 1 7 4 1 6 0 2 5 3 6 5 2 , , , , , , , , , , , 1 4 8 2 4 3 7 0 5 6 2 9 5 9 2 8 0 5 3 5 2 5 2 5 7 6 0 4 9 4 8 3 0 6 6 2 2 2 5 6 7 5 3 5 4 1 7 4 0 4 9 6 5 2 2 5 2 , , , , , , , , , , , 0 5 8 8 0 1 0 3 9 7 0 8 7 8 1 8 4 6 2 0 3 0 4 0 8 3 8 6 0 3 8 8 6 2 2 3 3 3 4 4 3 3 3 3 3 3 3 4 4 8 9 0 1 2 2 3 3 4 5 6 7 8 9 0 1 A O L LE e l t l h S a e o S s T T R T T A T F e r t : o o h o o o o e l l U L N l C B e f a r o d i i r f s l o f n o n o a o a n o p i t e a a n t n e n e m n d a a r p u n h n s a a s k s t e i b r o m c e e n v t s r s i a c a i a a r s s g c n i e n n h e n d i n t e n i t e g e k t r a n a s d d u d o c n s g a a l r d i f d i r l l o o y l g i a o n e e e e s n l v a r g r a p c a p i c a n e e f s e s c o b o o n o i s a r e e i u s a l g 2 d r n m v n s i i l n n t r t , m d t a p e i o k e u f c b c n e r s e s i r c a l n y o r e a e n e l a s a i l u t r s t n r 2 o n a s v s n r p c n n u y e t t i r d a a r h 2 b a i o n i l n l e d e d o d g i s e u t i U v h x n o c s i e n p s s e f t r f t i i i e c i t i o o n u c t e f n n u i d i d r n s a t i i a i l t t S o i n u i e n t c n r s a i s e s a t s t e l i s t i u n t s io ti n tu s tions 6 1 1 1 4 2 3 5 7 2 1 1 3 1 1 1 5 7 0 4 0 3 5 5 1 2 6 4 3 4 1 2 , , , , , , , , , , , , , , , , 3 5 3 4 3 0 7 9 2 1 4 0 7 7 0 8 1 1 2 0 2 5 2 7 6 0 8 2 2 2 0 6 4 2 7 4 3 1 3 9 6 2 1 7 1 4 8 1 ' ' ' ' ' ' ' ' 6 1 1 1 4 2 5 3 1 2 7 3 1 1 1 1 5 7 0 4 3 0 3 5 2 1 0 3 5 4 2 2 , , , , , , , , , , , , , , , , 0 1 3 6 8 7 7 6 6 8 2 8 1 9 8 0 4 4 7 1 7 4 9 3 5 4 0 0 1 6 7 3 8 2 9 6 3 5 6 5 8 0 5 C 4 5 2 4 ' ' ' ' 6 1 1 1 4 2 3 5 2 7 1 1 1 1 2 1 0 4 5 7 3 0 5 7 3 2 8 4 4 0 2 6 , , , , , , , , , , , , , , , , 1 8 2 9 2 9 2 2 1 0 2 1 2 9 8 7 1 0 1 6 9 3 6 7 9 6 4 1 3 5 8 8 7 0 8 6 3 4 3 8 5 8 9 6 1 7 2 7 ' ' ' ' ' 6 1 1 1 4 2 5 3 2 7 1 1 1 1 2 1 0 4 7 4 3 5 6 0 3 2 4 3 6 1 5 2 , , , , , , , , , , , , , , , , 8 9 2 0 7 2 9 6 4 2 7 0 1 2 9 8 3 1 4 3 9 9 8 8 4 1 9 5 1 4 1 1 7 4 4 8 1 9 7 9 1 7 2 9 3 4 C 9 ' ' ' ' ' ' 6 1 1 1 4 2 3 6 7 2 1 1 3 1 1 1 1 5 7 5 4 0 3 2 2 3 7 0 6 4 0 3 , , , , , , , , , , , , , , , , 6 1 8 1 8 3 9 1 5 7 9 0 1 0 2 3 2 5 6 7 6 2 6 3 0 7 0 4 9 0 5 4 3 7 1 3 9 6 3 5 3 1 1 6 6 C 9 8 ' ' ' ' ' ' ' ' 6 1 1 1 4 5 2 3 2 7 1 1 1 2 1 1 0 8 5 7 5 5 0 3 4 3 0 3 7 9 4 3 , , , , , , , , , , , , , , , , 1 1 0 0 1 3 9 0 1 7 0 9 2 7 5 1 0 6 0 0 6 3 5 7 7 0 9 3 6 8 1 7 9 4 6 5 9 5 8 8 5 5 8 2 6 9 9 3 6 1 1 1 4 2 6 3 7 2 1 1 1 1 2 1 0 7 4 5 3 5 2 0 3 4 0 7 8 4 4 3 , , , , , , , , , , , , , , , , 7 1 4 1 7 2 5 1 1 7 5 7 9 9 2 2 2 1 2 5 3 4 9 6 1 3 6 0 6 4 5 0 1 5 1 4 1 1 6 9 7 0 0 4 2 3 3 9 6 1 1 1 4 6 2 3 7 2 1 1 1 2 1 1 0 0 5 7 3 5 4 0 4 4 6 4 4 0 6 3 , , , , , , , , , , , , , , , , 4 3 8 0 1 3 3 8 1 7 4 8 2 7 4 1 7 3 4 9 6 0 4 4 2 4 6 5 7 7 6 4 1 6 7 4 6 9 9 3 3 6 9 5 2 8 6 8 44 Total assets 1,067,53c 1,073,057' 1,066,395' 1,067,167' 1,102,852' 1,084,239 1,078,822 1,074,164 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 6 6 5 7 8 9 6 3 4 9 0 1 2 5 6 7 8 0 1 T D N L r i e o D a U a S D F I B C F S I B U m n n n b n t o o t e e a o . e . t d a d a i s a S r r S r r p n p r l t t a i i e n e t a i . r . e o k e v o v i t c i d i o n s f s i s s i g s i g g g t e i w d s d i i i n n e o o s a d a t i a o t u u d i n o o v n v n e c n n a g a g f r d r e d p e t o l a g l f y o y o i r s s r b o o r n s o v n , v , n p p a s r d n i i b e m e o o m e f i n l n p p o t r r r a l i l s o s s a a e b n i e i g n o n r t t t t f r r n a n n m r m i m i i i c f t t t t c o c t l t n n i e u u a e a e c a c w s F e e t n l t l n o n e i i r r e e c o r t u t o o s s s s d s d s s e n n h h t n u u , ' s e h s s t i i b b a m c r r p p e o n d d a h i i r i s f s o n d e n l i i e f , v v s n t i a c R c h U i t o i a e n k s h s i a f n y e d a n i s i e f n d o s o l i i c e t n n c i U d e c i n r s s o a d e v o n s r l m e t r i p i S i t p n t o e a B t o u d s r n a r t a a t d t i a i n t e S o t t i s u k n d t i o a o s t s e n i t n p o s e a s o n s n s s d i ts b anks.. 4 4 1 1 1 7 2 3 2 3 9 4 9 5 2 3 5 9 9 2 2 9 3 7 3 3 0 , , , , , , , , , , , , , , 3 3 0 1 3 5 6 6 7 8 6 4 7 3 5 3 1 0 4 2 6 9 9 8 6 6 1 9 9 0 7 2 0 8 9 8 9 3 2 8 2 0 9 1 9 4 1 0 8 2 3 ' ' ' ' ' 4 4 1 1 1 7 3 2 3 2 4 9 8 4 2 3 0 7 8 8 9 2 4 5 6 9 8 1 , , , , , , , , , , , , , , , 7 3 8 6 2 4 9 3 2 0 2 2 7 9 4 6 4 8 5 4 3 0 1 7 4 5 3 3 4 1 3 2 1 1 4 3 9 7 6 7 6 7 6 7 7 4 0 7 7 9 2 ' ' 4 4 1 1 1 7 2 3 3 2 9 4 8 4 5 9 2 2 8 8 5 8 4 4 1 2 6 , , , , , , , , , , , , , , 6 3 4 2 1 5 3 5 9 4 1 5 4 4 7 7 5 8 6 1 1 5 1 6 1 3 2 7 2 7 6 0 4 3 4 5 2 8 8 4 7 6 6 8 7 9 5 5 6 5 C ' 4 4 1 1 1 7 3 2 3 2 9 4 8 4 4 4 9 2 7 8 2 9 4 1 5 2 6 , , , , , , , , , , , , , , 2 6 2 3 0 8 6 5 4 5 6 8 8 4 2 7 7 6 9 6 4 4 1 8 5 6 3 3 1 9 8 2 8 5 1 7 1 4 5 0 9 1 2 0 7 0 1 8 9 C 9 ' ' 2 4 4 2 1 2 4 1 7 3 0 2 6 5 2 1 4 8 7 6 9 9 2 0 4 1 0 , , , , , , , , , . , , , , 6 7 4 4 7 1 6 4 2 1 4 7 7 8 2 5 4 5 5 4 4 2 0 7 4 5 6 7 7 3 4 8 5 7 8 2 7 2 6 9 5 8 8 2 1 0 0 C 6 2 4 ' ' ' ' ' 4 4 2 1 1 7 2 4 3 0 2 4 9 4 2 5 0 1 8 1 5 8 9 2 4 8 2 1 , , , , , , , , , , , , , , , 5 8 2 4 9 8 2 1 2 3 3 4 3 3 4 7 2 2 9 6 8 5 7 9 2 7 9 8 8 3 7 6 2 0 1 1 4 7 7 2 2 5 2 2 8 0 6 6 6 5 8 4 4 2 1 1 7 2 3 3 0 2 4 9 5 5 2 9 3 5 8 9 2 8 1 4 6 3 , , , , , , . . , , , , , , 2 7 5 1 9 4 4 2 4 2 3 7 7 6 2 4 3 2 9 9 7 5 9 2 6 9 2 8 5 1 3 7 7 9 8 5 5 9 9 0 8 5 9 9 4 0 0 8 4 5 7 4 4 2 1 1 7 2 3 0 3 2 8 4 6 5 2 8 5 8 9 2 3 9 4 6 1 1 2 1 , , , , , , , , , , , , , , , , 6 0 3 0 6 3 3 3 3 9 5 0 8 4 3 6 2 1 9 4 7 6 6 0 3 3 6 4 3 2 8 3 8 7 4 4 9 9 9 0 1 4 9 6 2 9 3 0 2 6 2 6 6 6 4 2 3 T O A r l t l e h a e o s r t u h l r e i y a r b l t i i a l a i x t b i - i e a l s i n t d i a e - n s l d o f a s o n u r b n b o o o r t r d e r s i o n w at e e d d m n o o n te e y a 3 n d debentures 1 9 8 6 4 6 , . , 5 9 8 2 9 2 1 C 6 ' 1 9 9 6 5 2 , , , 1 7 3 3 2 9 4 7 0 ' 1 9 8 7 5 6 , , , 0 7 9 3 8 2 5 8 7 ' 1 9 8 7 6 8 , , , 1 2 1 4 5 4 4 9 9 ' 1 9 9 4 7 5 , , , 1 7 7 8 6 3 3 1 6 ' ' ' 1 9 9 8 3 7 , , , 1 3 2 4 9 7 5 6 2 1 9 8 1 3 5 5 , , , 0 0 8 9 6 3 1 9 3 1 9 8 1 3 5 6 , , , 2 1 8 4 7 8 3 6 6 65 Total liabilities 991,52C 996,905' 990,235' 991,15^ 1,026,545' 1,007,651 1,002,488 997,953 66 Residual (total assets minus total liabilities)4 76,011 76,152 76,159 76,014 76,307' 76,588 76,334 76,212 6 6 6 7 7 7 7 7 8 9 0 1 2 3 T T T M L N i o o o E o m O C t t a n M a a e o n t l l t h O s r m d l l e a o o r m s e n a a o p s e n n l a o d r s s c s c t i o i a a i t a s n n u o l d d n t i r a n i l l n s g e e d a a h a a v m t s s i i e e n n o to s s d g u u s ( n ( a g g s f t d s t r f r r e o i o i l o p s s a i f s a s l o ) ) t s $ e i a a 1 s t n d s 0 — d j 0 ( u t , i 0 o i s n n 0 t t c e a v 0 l l d u e 6 o 2 s d ' r 5 t i m n m g e o n r M t e s M ad D ju A s s te ) d .. 5 . 8 6 1 1 1 8 5 8 9 2 0 4 1 6 , , , , , , 3 1 6 2 7 0 6 2 2 2 7 9 7 7 0 3 3 2 8 0 C ' 8 6 1 1 2 7 5 8 1 2 8 5 1 6 , , , , , , 0 4 4 7 2 9 5 3 0 7 4 6 5 8 3 1 3 0 0 5 6 ' ' ' 8 6 1 1 2 8 8 5 2 4 7 1 7 6 , , , , , , 0 5 2 7 0 0 0 2 8 0 8 5 5 6 7 4 1 6 8 C 3 ' ' ' 8 6 1 1 2 8 5 8 3 1 1 1 6 6 , , , , , , 4 8 7 2 4 2 9 2 7 3 5 5 9 9 8 8 9 9 C 7 C ' ' ' 8 6 1 1 3 9 5 8 4 0 1 1 7 5 , , , , , , 8 7 2 8 0 9 0 8 6 3 0 0 3 9 1 4 0 C 3 7 2 ' ' ' 8 6 1 1 3 8 5 8 0 7 6 1 1 7 , , , , , , 3 4 7 9 2 2 6 4 0 6 6 7 1 5 6 2 4 2 6 4 1 8 6 1 1 3 8 8 5 2 1 9 7 1 6 , , , , , , 4 0 3 6 4 4 2 5 9 4 9 0 0 5 8 4 7 4 6 0 0 8 6 1 1 3 8 5 8 2 1 7 8 7 1 , , , , , , 6 2 4 1 3 8 0 0 0 8 5 6 4 2 5 9 2 8 2 7 3 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 • December 1985 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1985 AAccccoouunntt Aug. 7 Aug. 14 Aug. 21 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 1 Cash and balances due from depository institutions 20,579' 22,348' 19,463' 22,000' 24,629' 20,974 20,999 21,406 24,556 2 Total loans, leases and securities, net1 175,496' 177,621' 180,811' 178,465' 184,176' 180,786 181,493 180,879 183,833 Securities 3 4 5 Investment account, by maturity 9,689 9,667 10,002 9,869 9,791 9,359 9,424 10,109 10,121 6 One year or less 1,844 1,844 1,770 1,781 1,669 1,670 1,896 1,828 1,854 7 Over one through five years 6,203 6,051 6,457 6,425 6,330 6,038 5,896 6,639 6,612 8 Over five years 1,642 1,772 1,776 1,662 1,792 1,650 1,632 1,643 1,655 9 in n Investment account 10,216 10,422 10,481 10,482 10,544 10,550 10,510 10,518 10,792 12 States and political subdivisions, by maturity 9,177 9,231 9,268 9,270 9,273 9,319 9,329 9,430 9,616 13 One year or less 1,339 1,357 1,390 1,398 1,429 1,434 1,447 1,548 1,717 14 Over one year 7,837 7,874 7,878 7,872 7,844 7,884 7,882 7,882 7,899 15 Other bonds, corporate stocks and securities 1,040 1,190 1,213 1,212 1,271 1,230 1,181 1,088 1,176 1166 Loans and leases 17 Federal funds sold3 21,119 23,714 23,736 23,238 25,070 24,696 22,571 22,851 22,822 18 To commercial banks 10,223 12,192 10,150 11,046 11,979 11,815 10,138 11,418 11,010 19 To nonbank brokers and dealers in securities 6,762 7,085 7,978 6,760 7,788 7,221 7,002 6,180 6,899 20 To others 4,134 4,437 5,608 5,432 5,303 5,660 5,431 5,252 4,913 21 Other loans and leases, gross 139,656' 139,056' 141,838' 140,127' 144,049' 141,513 144,342 142,726 145,372 22 Other loans, gross 136,971' 136,338' 139,133' 137,390' 141,314' 138,811 141,612 139,987 142,632 23 Commercial and industrial 60,208 59,870 59,770 59,703 60,751 60,336 60,836 60,450 60,602 24 Bankers acceptances and commercial paper 980 797 754 688 750 759 670 704 676 25 All other 59,227 59,074 59,017 59,015 60,000 59,576 60,166 59,745 59,926 26 U.S. addressees 58,556 58,354 58,310 58,325 59,313 58,886 59,464 59,058 59,244 27 Non-U.S. addressees 671 720 707 690 688 691 702 687 682 28 Real estate loans 27,306 27,473 27,636 27,685 27,688 27,848 28,060 28,121 27,980 29 To individuals for personal expenditures 17,254 17,347 17,342 17,433 17,527 17,578 17,654 17,725 17,778 30 To depository and financial institutions 11,508' 11,329' 11,786' 11,998 12,709' 11,560 12,244 12,014 12,794 31 Commercial banks in the United States 2,203' 2,100' 2,240' 2,717' 2,484' 2,184 2,467 2,684 2,686 32 Banks in foreign countries 2,004 1,734 2,042 1,784 2,695 1,916 2,302 2,106 2,872 33 Nonbank depository and other financial institutions 7,300 7,495 7,504 7,497 7,529 7,461 7,475 7,224 7,236 34 For purchasing and carrying securities 7,838 7,475 9,797 7,571 8,581 8,803 9,538 8,654 9,362 35 To finance agricultural production 367 352 342 340 315 309 303 303 349 36 To states and political subdivisions 8,014 8,395 8,421 8,286 8,274 8,128 8,147 8,119 8,168 37 To foreign governments and official institutions 767 626 648 829 865 872 786 918 986 38 All other 3,709 3,471 3,390 3,543 4,604 3,377 4,043 3,684 4,612 39 Lease financing receivables 2,685 2,718 2,706 2,737 2,735 2,702 2,730 2,738 2,741 40 LESS: Unearned income 1,450 1,450 1,452 1,454 1,428 1,430 1,430 1,438 1,412 41 Loan and lease reserve 3,734 3,788 3,794 3,796 3,850 3,902 3,925 3,886 3,862 42 Other loans and leases, net 134,472' 133,818' 136,592' 134,876' 138,771' 136,181 138,987 137,401 140,098 43 All other assets4 67,849 68,095 65,150 64,155 70,716 69,136 68,260 67,302 69,951 44 Total assets 263,923' 268,064' 265,425' 264,620' 279,521' 270,896 270,751 269,588 278,340 Deposits 45 Demand deposits 47,212' 44,999' 45,764' 45,668' 53,329' 45,029 46,869 46,601 52,957 46 Individuals, partnerships, and corporations 30,833 31,552 30,295 30,528 35,561 30,517 31,150 31,261 34,898 47 States and political subdivisions 892 868 1,017 809 782 764 761 785 1,256 48 U.S. government 453 424 112 368 193 537 713 277 159 49 Depository institutions in the United States 5,253' 4,185' 5,922' 5,522' 6,202' 4,603 5,564 5,360 6,575 50 Banks in foreign countries 4,243 3,795 4,168 3,701 5,395 3,992 4,265 4,029 5,412 51 Foreign governments and official institutions 603 770 562 711 687 1,014 569 847 628 52 Certified and officers' checks 4,934 3,404 3,687 4,027 4,510 3,601 3,846 4,042 4,029 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers) 4,194 4,127 4,067 4,046 4,259 4,257 4,174 3,985 4,281 54 Nontransaction balances 85,896 85,562 85,461 84,925 85,632 85,405 85,423 85,684 86,417 55 Individuals, partnerships and corporations 78,144 77,709 77,719 77,252 77,874 77,608 77,447 77,792 78,168 56 States and political subdivisions 4,548 4,592 4,556 4,489 4,568 4,555 4,756 4,654 4,979 57 U.S. government 49 54 51 49 39 39 38 36 35 58 Depository institutions in the United States 2,136 2,170 2,098 2,122 2,164 2,163 2,058 2,070 2,060 59 Foreign governments, official institutions and banks 1,019 1,037 1,038 1,013 987 1,040 1,124 1,131 1,174 60 Liabilities for borrowed money 61,594 66,563 62,845 63,330 67,734 67,281 68,610 67,937 74,400 61 1,290 425 375 350 62 Treasury tax-and-loan notes 1,490 1,379 1,694 1,995 1,366 793 3,752 4,014 1,699 63 All other liabilities for borrowed money5 60,104 63,894 60,726 61,335 66,368 66,113 64,859 63,573 72,702 64 Other liabilities and subordinated note and debentures 40,756 42,492 42,960 42,399 44,210 44,454 41,335 41,202 35,816 65 Total liabilities 239,651' 243,744' 241,097' 240,368' 255,164' 246,426 246,411 245,410 253,871 66 Residual (total assets minus total liabilities)6 24,272 24,320 24,328 24,252 24,358 24,470 24,340 24,178 24,469 MEMO 67 Total loans and leases (gross) and investments adjusted1'7 168,254 168,567 173,667 169,953 174,990 172,119 174,243 172,102 175,411 68 Total loans and leases (gross) adjusted7 148,349 148,478 153,184 149,602 154,655 152,211 154,309 151,474 154,498 69 Time deposits in amounts of $100,000 or more 32,726 32,534 32,525 32,220 32,615 32,625 32,404 32,582 32,945 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 1985 AAccccoouunntt Aug. 7 Aug. 14 Aug. 21 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 1 Cash and due from depository institutions. 7,004 6,874 6,828 6,886 6,617 6,768 6,710 6,924 6,516 2 Total loans and securities 45,074 46,888 46,633 46,964 47,607 48,935 47,934 49,770 50,836 3 U.S. Treasury and govt, agency securities 3,092 3,055 3,063 3,208 3,242 3,484 3,435 3,391 3,562 4 Other securities 2,066 2,033 2,058 2,090 2,156 2,189 2,248 2,348 2,375 5 Federal funds sold1 3,621 4,754 3,399 4,102 4,046 3,954 3,238 4,548 4,334 6 To commercial banks in the United States 3,258 4,402 3,163 3,652 3,695 3,407 2,812 4,126 3,887 7 To others 363 352 237 450 351 547 426 422 447 8 Other loans, gross 36,294 37,045 38,113 37,564 38,163 39,308 39,012 39,483 40,566 9 Commercial and industrial 21,991 22,311 23,030 22,399 22,900 23,276 23,339 23,494 23,874 10 Bankers acceptances and commercial paper 1,772 1,676 1,764 1,587 1,770 1,744 1,730 11,,665500 11,,669966 11 All other 20,219 20,635 21,266 20,812 21,130 21,532 21,608 21,844 22,178 12 U.S. addressees 18,807 19,246 19,854 19,298 19,707 20,150 20,253 20,543 20,906 13 Non-U.S. addressees 1,412 1,389 1,412 1,514 1,423 1,382 1,356 1,300 1,272 14 To financial institutions 10,027 10,354 10,984 11,018 10,655 11,127 10,966 11,295 12,024 15 Commercial banks in the United States . 7,600 7,946 8,582 8,671 8,151 8,589 8,486 8,777 9,057 16 Banks in foreign countries 1,032 1,104 1,037 1,032 1,074 1,079 1,046 998 1,407 17 Nonbank financial institutions 1,395 1,304 1,365 1,316 1,430 1,459 1,434 1,520 1,560 18 To foreign govts, and official institutions.. 516 512 506 515 514 604 532 574 544 19 For purchasing and carrying securities .. 1,354 1,447 1,168 1,217 1,602 1,813 1,627 1,607 1,569 20 All other 2,406 2,420 2,426 2,415 2,492 2,488 2,548 2,514 2,554 21 Other assets (claims on nonrelated parties).. 18,483 18,735 18,600 18,758 18,689 18,888 19,853 19,997 18,935 22 Net due from related institutions 9,243 8,852 8,648 8,188 8,777 8,641 8,730 9,365 8,792 23 Total assets 7799,,880044 81,350 80,709 80,796 81,691 83,231 83,227 86,056 85,079 24 Deposits or credit balances due to other than directly related institutions.... 23,685 23,889 24,566 25,238 25,003 25,606 25,972 2266,,118899 2266,,660044 25 Credit balances 208 137 136 280 143 158 163 151 262 26 Demand deposits 1,759 1,762 1,643 1,755 1,745 1,908 1,881 1,912 2,146 27 Individuals, partnerships, and corporations 998 943 957 965 948 962 999922 995577 11,,008800 28 Other 761 818 686 790 797 946 889 955 1,067 29 Time and savings deposits 21,718 21,990 22,788 23,203 23,115 23,539 23,928 24,126 24,196 30 Individuals, partnerships, and corporations 17,059 17,248 18,420 18,615 18,587 18,925 19,003 1199,,227766 1199,,226655 31 Other 4,659 4,742 4,367 4,588 4,528 4,614 4,924 4,850 4,930 32 Borrowings from other than directly related institutions 29,572 28,930 28,763 28,206 30,488 3300,,223366 2299,,338800 3300,,668899 3311,,661100 33 Federal funds purchased2 11,426 11,000 11,060 11,200 13,799 13,320 12,484 13,119 13,878 34 From commercial banks in the United States 8,787 8,605 8,373 8,253 10,859 10,500 9,475 1100,,005588 1100,,777711 35 From others 2,639 2,395 2,687 2,946 2,940 2,820 3,010 3,060 3,107 36 Other liabilities for borrowed money.... 18,145 17,931 17,703 17,006 16,689 16,916 16,896 17,571 17,732 37 To commercial banks in the United States 16,813 16,287 16,131 15,736 15,516 15,699 15,843 16,455 16,575 38 To others 1,332 1,644 1,572 1,270 1,173 1,217 1,053 1,116 1,156 39 Other liabilities to nonrelated parties 20,903 20,789 20,643 21,078 20,827 21,214 21,385 21,567 21,026 40 Net due to related institutions 5,645 7,741 6,736 6,274 5,373 6,175 6,489 7,610 5,839 41 Total liabilities 79,804 81,350 80,709 80,796 81,691 83,231 83,227 86,056 85,079 MEMO 42 Total loans (gross) and securities adjusted3 34,216 34,540 34,888 34,641 35,761 36,938 36,636 3366,,886677 3377,,889922 43 Total loans (gross) adjusted3 29,057 29,451 29,767 29,343 30,364 31,266 30,952 31,128 31,955 • 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 • December 1985 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances, not seasonally adjusted Commercial banks TTyyppee ooff hhoollddeerr 1984 1985 11998800 11998811 11998822 11998833 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar.3 JuneP 1 All holders—Individuals, partnerships, and corporations 315.5 288.9 291.8 293.5 279.3 286.3 288.8 302.7 288.1 300.9 2 Financial business 29.8 28.0 35.4 32.8 31.7 30.8 30.4 31.7 28.1 29.4 3 Nonfinancial business 162.8 154.8 150.5 161.1 150.3 156.7 158.9 166.3 159.7 165.4 4 Consumer 102.4 86.6 85.9 78.5 78.1 78.7 79.9 81.5 77.3 81.9 5 Foreign 3.3 2.9 3.0 3.3 3.3 3.5 3.3 3.6 3.5 3.6 6 Other 17.2 16.7 17.0 17.8 15.9 16.7 16.3 19.7 19.6 20.6 Weekly reporting banks 1984 1985 11998800 11998811 11998822 11998833 DDeecc.. DDeecc.. DDeecc.. DDeecc..22 Mar. June Sept. Dec. Mar.3 June'' 7 All holders—Individuals, partnerships, and corporations 147.4 137.5 144.2 146.2 139.2 145.3 145.3 157.1 147.8 151.9 8 Financial business 21.8 21.0 26.7 24.2 23.5 23.6 23.7 25.3 22.6 23.3 9 Nonfinancial business 78.3 75.2 74.3 79.8 76.4 79.7 79.2 87.1 82.8 83.9 10 Consumer 35.6 30.4 31.9 29.7 28.4 29.9 29.8 30.5 29.1 30.1 11 Foreign 3.1 2.8 2.9 3.1 3.2 3.2 3.2 3.4 3.3 3.5 12 Other 8.6 8.0 8.4 9.3 7.7 8.9 9.3 10.9 10.0 11.1 1. Figures include cash items in process of collection. Estimates of gross 3. Beginning March 1985, financial business deposits and, by implication, total deposits are based on reports supplied by a sample of commercial banks. Types of gross demand deposits have been redefined to exclude demand deposits due to depositors in each category are described in the June 1971 BULLETIN, p. 466. thrift institutions. Historical data have not been revised. The estimated volume of 2. In January 1984 the weekly reporting panel was revised; it now includes 168 such deposits for December 1984 is $5.0 billion at all insured commercial banks banks. Beginning with March 1984, estimates are constructed on the basis of 92 and $3.0 billion at weekly reporting banks. sample banks and are not comparable with earlier data. Estimates in billions of dollars for December 1983 based on the newly weekly reporting panel are: financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; 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 1985 11998800 11998811 11998822 11998833 11998844 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc..11 DDeecc.. DDeecc..22 Mar. Apr. May June July Aug. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 124,374 165,829 166,436 188,312 239,117 250,575 255,236 258,943 254,627 262,769 273,327 FFiinnaanncciiaall ccoommppaanniieess33 DDeeaalleerr--ppllaacceedd ppaappeerr44 22 TToottaall 19,599 30,333 34,605 44,622 56,917 60,895 63,405 61,282 61,602 67,419 67,816 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 3,561 6,045 2,516 2,441 2,035 2,304 2,180 2,295 2,051 2,083 2,136 DDiirreeccttllyy ppllaacceedd ppaappeerr55 44 TToottaall 67,854 81,660 84,393 96,918 110,474 118,029 117,841 119,975 118,432 118,722 128,216 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 22,382 26,914 32,034 35,566 42,105 43,334 42,405 43,126 43,454 41,228 42,926 66 NNoonnffiinnaanncciiaall ccoommppaanniieess66 36,921 53,836 47,437 46,772 71,726 71,651 73,990 77,686 74,593 76,628 77,295 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 54,744 69,226 79,543 78,309 75,470 73,726 72,825 69,689 68,375 68,497 66,713 Holder 8 Accepting banks 10,564 10,857 10,910 9,355 10,255 10,473 9,666 9,265 9,470 9,299 9,093 9 Own bills 8,963 9,743 9,471 8,125 9,065 9,166 8,263 7,578 7,869 8,012 7,895 10 Bills bought 1,601 1,115 1,439 1,230 1,191 1,340 1,403 1,687 1,601 1,287 1,198 Federal Reserve Banks 11 Own account 776 195 1,480 418 0 0 0 0 0 0 0 12 Foreign correspondents 1,791 1,442 949 729 671 737 728 575 511 652 789 13 Others 41,614 56,731 66,204 68,225 67,595 62,516' 62,431' 59,849' 58,394' 58,546' 56,831 Basis 14 Imports into United States 11,776 14,765 17,683 15,649 16,975 16,124 16,417 16,670 16,286 16,444 16,705 15 Exports from United States 12,712 15,400 16,328 16,880 15,859 15,179 14,875 14,214 13,340 12,969 12,858 16 All other 30,257 39,060 45,531 45,781 42,635 42,423 41,533 38,804 38,748 39,084' 37,149 1. Effective Dec. 1,1982, there was a break in the commercial paper series. The financing; factoring, finance leasing, and other business lending; insurance key changes in the content of the data involved additions to the reporting panel, underwriting; and other investment activities. the exclusion of broker or dealer placed borrowings under any master note 4. Includes all financial company paper sold by dealers in the open market. agreements from the reported data, and the reclassification of a large portion of 5. As reported by financial companies that place their paper directly with bank-related paper from dealer-placed to directly placed. investors. 2. Correction of a previous misclassification of paper by a reporter has created 6. Includes public utilities and firms engaged primarily in such activities as a break in the series beginning December 1983. The correction adds some paper to communications, construction, manufacturing, mining, wholesale and retail trade, nonfinancial and to dealer-placed financial paper. transportation, and services. 3. Institutions engaged primarily in activities such as, but not limited to, 7. Beginning October 1984, the number of respondents in the bankers acceptcommercial, savings, and mortgage banking; sales, personal, and mortgage ance survey will be reduced from 340 to 160 institutions—those with $50 million or more in total acceptances. The new reporting group accounts for over 95 percent of total acceptances activity. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Rate Effective Date Rate Month Average Month rate 11.00 1984—Oct. 17 12.50 1983—Jan 11.16 1984—May 10.50 29 12.00 Feb 10.98 June. 11.00 Nov. 9 11.75 Mar 10.50 July. 28 11.25 Apr 10.50 Aug. 11.50 Dec. 20 10.75 10.50 Sept. 12.00 June 10.50 Oct. 12.50 1985—Jan. 15 10.50 July 10.50 Nov. 13.00 May 20 10.00 Aug 10.89 Dec. 12.75 June 18 9.50 O Se c p t t 1 1 1 1 . . 0 0 0 0 1985—Jan. Nov 11.00 Feb.. Dec 11.00 Mar. Apr.. 1984—Jan.. 11.00 May. Feb. 11.00 June. M Ap a r r . . 1 1 1 1 . . 2 9 1 3 J A u u l g y . . Sept. 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 • December 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. 1985 1985, week ending IInnssttrruummeenntt 11998822 11998833 11998844 June July Aug. Sept. Aug. 30 Sept. 06 Sept. 13 Sept. 20 Sept. 27 MONEY MARKET RATES 1 Federal funds12 12.26 9.09 10.22 7.53 7.88 7.90 7.92 7.78 7.88 7.80 7.85 7.96 2 Discount window borrowing1'2 3 11.02 8.50 8.80 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 Commercial paper4'5 3 1-month 11.83 8.87 10.05 7.34 7.58 7.73 7.83 7.71 7.74 7.91 7.90 7.73 4 3-month 11.89 8.88 10.10 7.35 7.56 7.72 7.83 7.68 7.74 7.92 7.91 7.72 5 6-month 11.89 8.89 10.16 7.38 7.57 7.74 7.86 7.68 7.76 7.98 7.96 7.73 Finance paper, directly placed4-5 6 1-month 11.64 8.80 9.97 7.31 7.53 7.70 7.84 7.70 7.79 7.92 7.90 7.72 7 3-month 11.23 8.70 9.73 7.19 7.40 7.56 7.64 7.47 7.58 7.71 7.71 7.56 8 6-month 11.20 8.69 9.65 7.16 7.34 7.55 7.60 7.47 7.49 7.67 7.67 7.55 Bankers acceptances5 6 9 3-month 11.89 8.90 10.14 7.32 7.53 7.68 7.81 7.66 7.78 7.90 7.88 7.66 10 6-month 11.83 8.91 10.19 7.34 7.54 7.69 7.84 7.65 7.79 7.99 7.92 7.64 Certificates of deposit, secondary market7 11 1-month 12.04 8.96 10.17 7.38 7.58 7.77 7.88 7.75 7.82 7.94 7.94 7.78 12 3-month 12.27 9.07 10.37 7.44 7.64 7.81 7.93 7.79 7.87 8.00 7.99 7.82 13 6-month 12.57 9.27 10.68 7.58 7.80 7.97 8.09 7.92 8.02 8.24 8.19 7.89 14 Eurodollar deposits, 3-month8 13.12 9.56 10.73 7.60 7.89 8.03'' 8.14 7.99 8.11 8.29 8.16 8.00 U.S. Treasury bills5 Secondary market9 15 3-month 10.61 8.61 9.52 6.95 7.08 7.14 7.10 7.07 7.14 7.23 7.12 6.89 16 6-month 11.07 8.73 9.76 7.09 7.20 7.32 7.27 7.22 7.31 7.42 7.33 7.00 17 1-year 11.07 8.80 9.92 7.27 7.31 7.48 7.50 7.42 7.49 7.62 7.55 7.34 Auction average10 18 3-month 10.66 8.64 9.56 7.01 7.05 7.18 7.08 7.07 7.12 7.22 7.17 6.81 19 6-month 10.80 8.76 9.79 7.16 7.16 7.35 7.27 7.21 7.30 7.39 7.32 7.05 20 1-year 11.10 8.85 9.91 7.18 7.09 7.60 7.36 n.a. 7.36 n.a. n.a. n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds" Constant maturities12 21 1-year 12.27 9.57 10.89 7.80 7.86 8.05 8.07 7.97 8.04 8.20 8.11 7.88 22 2-vear 12.80 10.21 11.65 8.69 8.77 8.94 8.98 8.86 8.97 9.11 9.05 8.79 ">3 9.20 9.05 9.20 24 3-year 12.92 10.45 11.89 9.05 9.18 9.31 9.37 9.22 9.36 9.51 9.43 9.17 25 5-year 13.01 10.80 12.24 9.60 9.70 9.81 9.81 9.66 9.76 9.95 9.85 9.66 26 7-year 13.06 11.02 12.40 10.08 10.16 10.20 10.24 10.05 10.18 10.36 10.27 10.13 27 10-year 13.00 11.10 12.44 10.16 10.31 10.33 10.37 10.17 10.29 10.48 10.40 10.30 28 20-year 12.92 11.34 12.48 10.57 10.68 10.73 10.80 10.59 10.71 10.89 10.82 10.76 29 30-year 12.76 11.18 12.39 10.44' 10.50 10.56 10.61 10.42 10.52 10.70 10.62 10.58 Composite14 30 Over 10 years (long-term) 12.23 10.84 11.99 10.36 10.51 10.60 10.67 10.46 10.57 10.76 10.69 10.63 State and local notes and bonds Moody's series15 31 Aaa 10.86 8.80 9.61 8.24 8.34 8.49 8.70 8.50 8.50 8.70 8.80 8.80 32 Baa 12.46 10.17 10.38 9.03 9.18 9.50 9.63 9.60 9.60 9.60 9.65 9.65 33 Bond Buyer series16 11.66 9.51 10.10 8.69 8.81 9.08 9.27 9.09 9.07 9.26 9.35 9.38 Corporate bonds Seasoned issues17 34 All industries 14.94 12.78 13.49 11.70 11.69 11.76 11.75 11.63 11.66 11.79 11.79 11.74 35 Aaa 13.79 12.04 12.71 10.94 10.97 11.05 11.07 10.90 10.94 11.13 11.11 11.05 36 Aa 14.41 12.42 13.31 11.46 11.42 11.47 11.46 11.33 11.37 11.51 11.49 11.47 37 A 15.43 13.10 13.74 11.98 11.92 12.00 11.99 11.89 11.91 12.01 12.03 11.98 38 Baa 16.11 13.55 14.19 12.40 12.43 12.50 12.48 12.40 12.41 12.52 12.51 12.47 39 A-rated, recently-offered utility bonds18 15.49 12.73 13.81 11.62 11.60 11.77 11.87 11.73 11.89 11.92 11.91 11.80 MEMO: Dividend/price ratio19 40 Preferred stocks 12.53 11.02 11.59 10.05 9.92 10.15 10.26 10.25 10.23 10.23 10.29 10.27 41 Common stocks 5.81 4.40 4.64 4.21 4.14 4.23 4.32 4.22 4.23 4.28 4.36 4.41 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-'/6-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 one very low yielding "flower" bond. 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 A23 1.36 STOCK MARKET Selected Statistics 1985 IInnddiiccaattoorr 11998822 11998833 11998844 Jan. Feb. Mar. Apr. May June July Aug. Sept. 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 99.11 104.73 103.92 104.66 107.00 109.52 111.64 109.09 106.62 2 Industrial 78.18 107.45 108.01 113.99 120.71 119.64 119.93 121.88 124.11 126.94 124.92 122.35 3 Transportation 60.41 89.36 85.63 94.88 101.76 98.30 96.47 99.66 105.79 111.67 109.92 104.96 4 Utility 39.75 47.00 46.44 51.95 53.44 53.91 55.51 57.32 59.61 59.68 56.99 55.93 5 Finance 71.99 95.34 89.28 101.34 109.58 107.59 109.39 115.31 118.44 119.85 114.68 110.21 6 Standard & Poor's Corporation (1941-43 = 10)' ... 119.71 160.41 160.50 171.61 180.88 179.42 180.62 184.90 188.89 192.54 188.31 184.06 7 American Stock Exchange2 (Aug. 31, 1973 = 50) 282.62' 216.48 207.96 211.82 228.40 225.62 229.46 228.75 227.48 235.21 232.65 226.27 Volume of trading (thousands of shares) 8 New York Stock Exchange 64,617 85,418 91,084 121,545 115,489 102,591 94,387 106,827 110055,,884499 111111,,995522 8877,,446688 9977,,991100 9 American Stock Exchange 5,283 8,215 6,107 9,130 10,010 8,677 7,801 7,171 7,128 7,284 7,275 7,057 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 13,325 23,000 22,470 22,090 22,970 23,230 23,900 24,300 25,260 25,220 11 Margin stock 12,980 22,720 t I t t t t t 1 1 3 2 S C u o b n s v c e r r i t p i t b i l o e n b i o ss n u d e s s 344 1 279 1 Free credit balances at brokers4 14 Margin-account 5,735 6,620 7,015 6,770 6,680 6,780 6,910 6,865 7,300 7,000 15 Cash-account 8,390 8,430 10,215 9,725 9,840 10,155 9,230 9,230 10,115 9,700 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 (in percent)5 17 Under 40 21.0 41.0 46.0 35.0 36.0 38.0 39.0 36.0 37.0 34.0 35.0 40.0 18 40-49 24.0 22.0 18.0 19.0 20.0 20.0 19.0 19.0 19.0 20.0 21.0 22.0 2 1 0 9 6 50 0 - - 5 6 9 9 2 1 4 4 . . 0 0 1 9 6 . . 0 0 1 9 6 . . 0 0 2 1 0 1 . . 0 0 1 18 1 . . 0 0 1 1 0 8 . . 0 0 1 1 0 8 . . 0 0 1 19 1 . . 0 0 1 1 0 9 . . 0 0 1 19 1 . . 0 0 1 18 1 . . 0 0 1 9 6 . . 0 0 21 70-79 9.0 6.0 5.0 7.0 8.0 7.0 7.0 7.0 7.0 8.0 8.0 6.0 22 80 or more 8.0 6.0 6.0 8.0 8.0 7.0 7.0 8.0 8.0 8.0 7.0 7.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 35,598 58,329 75,840 79,600 81,830 81,930 82,990 87,120 86,910 89,240 90,930 91,400 Distribution by equity status (percent) 24 Net credit status 62.0 63.0 59.0 59.0 59.0 60.0 60.0 60.0 59.0 59.0 59.0 59.0 Debt status, equity of 2 2 6 5 L 60 e s p s e r th c a e n n t 6 o 0 r p m er o c r e e nt 2 9 9 . . 0 0 2 9 8 . . 0 0 2191..00 3 1 0 0 . . 0 0 3 1 1 0 . . 0 0 3 1 0 0 . . 0 0 3 1 0 0 . . 0 0 3 1 0 0 . . 0 0 3 1 1 0 . . 0 0 3 9 2 . . 0 0 3 1 0 1 . . 0 0 3 1 1 0 . . 0 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 • December 1985 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1984 1985 AAccccoouunntt 11998822 11998833 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. FSLIC-insured institutions 1 Assets 692,663 819,168 947,537 960,177 978,514 974,881 982,182 992,289 995,430 1,003,225 1,012,312 1,022,387 1,035,103 2 Mortgages 477,009 521,308 590,540 598,425 599,021 602,180 603,308 608,268 613,334 617,574 623,275 627,243 632,785 3 Mortgage-backed securities 62,798 90,902 109,049 107,320 108,219 106,836 107,779 108,755 108,174 106,433 102,892 105,120 108,213 4 Cash and investment securities1.. 82,300 109,923 120,342 124,304 135,640 129,481 131,625 132,438 127,225 129,918 132,109 132,211 134,968 5 Other n.a. n.a. 87,421 87,799 91,516 91,211 93,100 94,625 96,903 98,034 100,595 102,400 102,265 6 Liabilities and net worth 692,663 819,168 947,537 960,177 978,514 974,881 982,182 992,289 995,430 1,003,225 1,012,312 1,022,387 1,035,103 7 Savings capital 554,584 671,059 760,332 772,124 784,724 791,475 792,556 801,293 801,256 809,083 817,551 822,186 826,727 8 Borrowed money 97,459 98,511 129,550 128,060 137,123 125,605 129,321 132,665 132,230 129,082 130,269 133,467 139,209 9 FHLBB 63,818 57,253 70,274 70,419 71,719 70,509 71,470 71,674 72,785 74,159 75,897 77,698 80,142 10 Other 33,641 41,258 59,276 57,641 65,404 55,096 57,851 60,991 59,445 54,923 54,372 55,769 59,067 11 Other 15,233 16,619 21,331 23,081 18,746 19,961 21,816 19,290 22,468 24,215 22,055 23,587 25,579 12 Net worth2 25,386 32,980 36,324 36,912 37,921 37,840 38,488 39,041 39,476 40,845 42,436 43,147 43,593 13 MEMO: Mortgage loan commitments outstanding3... 27,806 56,785 68,640 68,516 65,836 64,154 65,323 67,615 68,671 69,683 69,585 68,341 67,057 Mutual savings banks4 14 Assets 174,197 193,535 203,274 204,499 203,898 204,859 206,175 210,568 210,469 212,509 212,207 213,824 215,298 Loans 15 Mortgage 94,091 97,356 102,704 102,953 102,895 103,393 103,654 104,340 105,102 105,869 105,911 106,441 107,322 16 Other 1166,,995577 1199,,112299 2244,,448866 24,884 24,954 25,747 26,456 27,798 28,000 28,530 29,199 30,339 30,195 Securities 17 U.S. government 9,743 15,360 15,295 15,034 14,643 14,628 14,917 15,098 14,504 14,895 14,082 13,960 13, 868 18 Mortgage-backed securities 14,055 18,205 18,515 18,991 19,215 19,459 19,167 19,694 19,750 19,527 19,157 19,779 20,101 19 State and local government.... 2,470 2,177 2,080 2,077 2,077 2,067 2,069 2,092 2,097 2,094 2,093 2,086 2,105 20 Corporate and other 22,106' 25,375' 24,388' 24,370' 23,747' 23,892' 23,896' 24,194' 24,139' 24,344 24,047 23,738 23,735 21 Cash 6,919 6,263 4,795 4,954 4,140 4,423 4,864 4,679 5,004 4,935 4,942 4,544 4,821 22 Other assets 7,855 9,670 11,395 11,413 11,533 11,593 12,488 12,288 12,246 12,770 12,776 12,937 13,151 23 Liabilities 174,197 193,535 204,499 203,898 204,859 206,175 210,568 210,469 212,509 212,163 212,207 213,824 215,298 24 Deposits 155,196 172,665 180,073 180,616 181,062 181,849 185,197 184,478 185,802 186,091 186,118 186,824 187,207 25 Regular5 152,777 170,135 177,130 177,418 177,954 178,791 181,742 180,804 182,113 182,218 182,243 182,881 183,222 26 Ordinary savings 46,862 38,554 34,009 33,739 33,413 33,413 33,715 33,211 33,457 33,526 33,530 33,495 33,398 27 Time 102,934 104,151 104,849 104,732 104,098 103,536 105,204 104,527 104,843 104,756 104,448 104,737 104,448 28 Other 2,419 2,530 2,943 3,198 3,108 3,058 3,455 3,689 3,674 3,873 3,875 3,943 3,985 29 Other liabilities 8,336 10,154 13,453 12,504 12,931 13,387 14,393 14,959 15,546 14,348 14,241 15,137 15,971 30 General reserve accounts 9,235 10,368 10,535 10,510 10,619 10,670 10,720 10,803 10,913 11,238 11,239 11,453 11,704 Life insurance companies8 31 Assets 588,163 654,948 705,827 712,271 722,979 731,113 735,332 742,154 748,865 757,523 765,891 772,452 Securities 37. Government 36,499 50,752 59,825 62,678 62,899 63,979 65,867 65,603 66,402 67,880 68,636 68,983 33 United States6 16,529 28,636 37,594 40,288 41,204' 41,982 43,916 43,502 44,200 45,593 46,260 46,514 34 State and local 8,664 9,986 9,344 9,385 8,713 8,913 9,000 8,902 8,923 8,998 9,044 8,980 35 Foreign7 11,306 12,130 12,887 13,005 12,982 13,084 12,951 13,199 13,279 13,289 13,332 13,489 36 Business 287,126 322,854 352,059 354,815 359,333 368,316 371,009 374,757 379,247 384,342 388,448 393,386 n.a. 37 Bonds 231,406 257,986 287,607 291,021 295,998 302,270 303,452 307,078 311,123 314,021 317,029 321,752 38 Stocks 55,720 64,868 64,452 63,794 63,335 66,046 67,557 67,679 68,124 70,321 71,419 71,634 39 Mortgages 141,989 150,999 156,064 156,691 156,699 156,850 157,253 158,162 159,393 160,470 161,485 162,690 40 Real estate 20,264 22,234 24,947 25,467 25,767 25,983 26,186 26,527 26,828 27,215 27,831 28,240 41 Policy loans 52,961 54,063 54,574 54,571 54,505 54,414 54,489 54,438 54,439 54,384 54,320 54,300 42 Other assets 48,571 54,046 58,358 58,049 63,776 61,571 60,528 62,667 62,556 63,232 65,171 64,853 Credit unions9 43 Total assets/liabilities and capital.. 69,585 81,961 91,619 92,521 93,036 94,646 96,183 98,646 101,268 104,992 106,948 107,991 111,150 44 Federal 45,493 54,482 61,935 62,690 63,205 64,505 65,989 67,799 68,903 71,342 72,021 72,932 74,869 45 State 24,092 27,479 29,684 29,831 29,831 30,141 30,194 30,847 32,365 33,650 34,762 35,059 36,281 46 Loans outstanding 43,232 50,083 60,483 62,170 62,561 62,662 62,393 62,936 64,341 65,298 66,817 67,662 69,171 47 Federal 27,948 32,930 40,727 41,762 42,337 42,220 42,283 42,804 43,414 44,042 40,378 44,963 46,036 48 State 15,284 17,153 19,756 20,408 20,224 20,442 20,110 20,132 20,927 21,256 22,110 22,699 23,135 49 Savings 62,990 74,739 83,129 84,000 84,348 86,047 86,048 88,560 91,275 95,278 96,702 98,026 99,834 50 Federal (shares) 41,352 49,889 56,665 57,302 57,539 58,820 59,914 61,758 62,867 66,680 66,243 67,070 68,087 51 State (shares and deposits) 21,638 24,850 26,474 26,698 26,809 27,227 26,134 26,802 28,408 28,598 30,459 30,956 31,747 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 NOTES TO TABLE 1.37 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all associa- 2. Includes net undistributed income accrued by most associations. tions in the United States. Data are based on monthly reports of federally insured 3. As of July 1985, data include loans in process. associations. Even when revised, data for current and preceding year are subject 4. The National Council reports data on member mutual savings banks and on to further revision. savings banks that have converted to stock institutions, and to federal savings Savings banks: Estimates of National Council of Savings Institutions for all banks. savings banks in the United States. 5. Excludes checking, club, and school accounts. Life insurance companies: Estimates of the American Council of Life Insurance 6. Direct and guaranteed obligations. Excludes federal agency issues not for all life insurance companies in the United States. Annual figures are annualguaranteed, which are shown in the table under "Business" securities. statement asset values, with bonds carried on an amortized basis and stocks at 7. Issues of foreign governments and their subdivisions and bonds of the year-end market value. Adjustments for interest due and accrued and for International Bank for Reconstruction and Development. differences between market and book values are not made on each item separately 8. Data for December 1984 through April 1985 have been revised. but are included, in total, in "other assets." 9. As of June 1982, data include federally chartered or federally insured, state- Credit unions: Estimates by the National Credit Union Administration for a chartered credit unions serving natural persons. Before that date, data were group of federal and federally insured state credit unions serving natural persons. estimates of all credit unions. 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 • December 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 1985 11998822 11998833 11998844 HI H2 HI July August Sept. U.S. budget 1 Receipts1 617,766 600,562 666,457 306,331 306,584 341,808 57,970 55,776 73,808 2 Outlays1 728,375 795,917 841,800 396,477 406,849 420,700 78,012 83,621 73,191 3 Surplus, or deficit (-) -110,609 -195,355 -175,343 -90,146 -100,265 -78,892 -20,042 -27,845 617 4 Trust funds 5,456 23,056 30,565 22,680 7,745 18,080 -392 287 13,164 5 Federal funds2 3 -116,065 -218,410 -205,908 -112,822 -108,005 -96,971 -19,650 -28,132 -12,547 Qff-budget entities (surplus, or deficit (-)) 6 Federal Financing Bank outlays -14,142 -10,404 -7,277 -5,418 -3,199 -2,813 -1,308 26 -31 7 Other3 4 -3,190 -1,953 -2,719 -528 -1,206 -838 -183 221 -1,350 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 -21,532 -27,597 -764 Source of financing 9 Borrowing from the public 134,993 212,425 170,817 102,538 84,020 80,592 23,921 16,157 5,975 10 Cash and monetary assets (decrease, or increase (-))4 -11,911 -9,889 5,636 -9,664 -16,294 -3,127 -466 12,013 -6,248 11 Other5 4,858 5,176 8,885 3,222 4,358 7,418 -1,923 -573 -1,037 MEMO 12 Treasury operating balance (level, end of period) 29,164 37,057 22,345 27,997 11,817 13,567 24,146 11,841 17,060 13 Federal Reserve Banks 10,975 16,557 3,791 19,442 3,661 4,397 2,656 3,656 4,174 14 Tax and loan accounts 18,189 20,500 18,553 8,764 8,157 9,170 21,489 8,185 12,886 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 A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1983 1984 1985 111999888333 111999888444 HI H2 HI H2 July Aug. Sept. RECEIPTS 1 All sources 600,562' 666,457 306,331 305,122 341,808 341,392 57,970 55,776 73,808 2 Individual income taxes, net 288,940' 295,960' 144,551 147,663 144,691 157,229 26,252 25,770 34,643 3 Withheld 266,010 279,35(K 135,531 133,768 140,657 145,210 26,898 24,914 22,569 4 Presidential Election Campaign Fund ... 36 35 30 6 29 5 3 2 11 83,585 81,346 63,014 20,703 61,463 19,403 1,133 2,285 1133,,661133 6 Refunds 60,692 64,770 54,024 6,815 57,458 7,387 1,783 1,431 1,539 Corporation income taxes 61,780 74,179 33,522 31,064 40,328 35,190 33,,005522 22,,339977 1122,,222244 8 Refunds 24,758 17,286 13,809 8,921 10,045 6,847 1,161 1,319 1,275 9 Social insurance taxes and contributions, net 208,994 241,902 110,520 100,832 131,372 118,690 22,853 22,943 2211,,997777 10 Payroll employment taxes and contributions' 185,766' 212,184' 97,340' 90,248' 114,103' 105,624' 2211,,113366'' 1188,,661177 2211,,332255 11 Self-employment taxes and contributions2 6,756 8,709 6,427 398 7,667 1,086 -406 0 11,,224477 12 Unemployment insurance 18,799 25,138 10,984 8,714 14,942 10,706 1,276 3,928 275 13 Other net receipts3 4,429' 4,580 2,197 2,290 2,329 2,360 441 398 376 35,300 37,361 16,904 19,586 18,304 18,961 3,409 2,544 3,331 15 Customs deposits 8,655 11,370 4,010 5,079 5,576 6,329 1,125 1,151 936 16 Estate and gift taxes 6,053 6,010 2,883 3,050 3,102 3,029 614 560 497 17 Miscellaneous receipts4 15,601' 16,965 7,751 7,811 8,481 8,812 1,826 1,730 1,473 OUTLAYS 18 All types 795,917 841,800 396,477 406,849 420,700 446,943 78,012 83,621 73,191 19 National defense 210,461 227,405 105,072 108,967 114,639 118,286 22,140 23,209 21,498 20 International affairs 8,927 13,313 4,705 6,117 5,426 8,550 491 1,542 1,995 21 General science, space, and technology ... 7,777 8,271 3,486 4,216 3,981 4,473 652 754 742 4,035 2,464 2,073 1,533 1,080 1,423 282 647 1,128 23 Natural resources and environment 12,676 12,677 5,892 6,933 5,463 7,370 1,317 1,396 1,083 24 Agriculture 22,173 12,215 10,154 5,278 7,129 8,524 1,162 1,510 978 25 Commerce and housing credit 4,721 5,198 2,164 2,648 2,572 2,663 -189 -295 401 26 Transportation 21,231 24,705 9,918 13,323 10,616 13,673 2,563 2,617 2,524 27 Community and regional development .... 7,302 7,803 3,124 4,327 3,154 4,836 476 730 521 28 Education, training, employment, social services 25,726 26,616 12,801 13,246 1133,,444455 1133,,773377 22,,118855 22,,774455 22,,113366 29 Health 28,655 30,435 41,206 27,271 15,551 15,692 2,944 2,917 2,672 30 Social security and medicare 223,311 235,764 n.a. n.a. 119,420 119,613 21,890 21,306 21,170 31 Income security 122,156 96,714 143,001 92,643 50,450 57,411 10,855 10,201 8,574 32 Veterans benefits and services 24,845 25,640 11,334 13,621 12,849 13,317 2,324 3,409 942 33 Administration of justice 5,014 5,616 2,522 2,628 2,807 2,992 658 519 469 34 General government 4,991 4,836 2,434 2,479 2,462 2,552 215 479 788 6,287 6,577 3,124 3,290 2,943 3,458 1,222 92 291 36 Net interest® 86,963 111,007 42,358 47,674 54,748 61,293 10,312 12,324 9,773 37 Undistributed offsetting receipts7 -33,976 -15,454 -8,887 -7,262 -8,036 -12,914 -3,485 -2,481 -4,495 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 • December 1985 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1983 1984 1985 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 1,324.3 1,381.9 1,415.3 1,468.3 1,517.2 1,576.7 1,667.4 1,715.1 1,779.0 2 Public debt securities 1,319.6 1,377.2 1,410.7 1,463.7 1,512.7 1,572.3 1,663.0 1,710.7 1,774.6 3 Held by public 1,090.3 1,138.2 1,174.4 1,223.9 1,255.1 1,309.2 1,373.4 1,415.2 1,460.5 4 Held by agencies 229.3 239.0 236.3 239.8 257.6 263.1 289.6 295.5 314.2 5 Agency securities 4.7 4.7 4.6 4.6 4.5 4.5 4.5 4.4 4.4 6 Held by public 3.6 3.6 3.5 3.5 3.4 3.4 3.4 3.3 3.3 7 Held by agencies 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 8 Debt subject to statutory limit 1,320.4 1,378.0 1,411.4 1,464.5 1,513.4 1,573.0 1,663.7 1,711.4 1,775.3 9 Public debt securities 1,319.0 1,376.6 1,410.1 1,463.1 1,512.1 1,571.7 1,662.4 1,710.1 1,774.0 10 Other debt1 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,389.0 1,389.0 1,490.0 1,490.0 1,520.0 1,573.0 1,823.8 1,823.8 1,823.8 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 1985 TTyyppee aanndd hhoollddeerr 11998800 11998811 11998822 11998833 Q3 Q4 Q1 Q2 1 Total gross public debt 930.2 1,028.7 1,197.1 1,410.7 1,572.3 1,663.0 1,710.7 1,774.6 By type 2 Interest-bearing debt 928.9 1,027.3 1,195.5 1,400.9 1,559.6 1,660.6 1,695.2 1,759.8 3 Marketable 623.2 720.3 881.5 1,050.9 1,176.6 1,247.4 1,271.7 1,310.7 4 Bills 216.1 245.0 311.8 343.8 356.8 374.4 379.5 381.9 5 Notes 321.6 375.3 465.0 573.4 661.7 705.1 713.8 740.9 6 Bonds 85.4 99.9 104.6 133.7 158.1 167.9 178.4 187.9 7 Nonmarketable1 305.7 307.0 314.0 350.0 383.0 413.2 423.6 449.1 8 State and local government series 23.8 23.0 25.7 36.7 41.4 44.4 47.7 53.9 9 Foreign issues2 24.0 19.0 14.7 10.4 8.8 9.1 9.1 8.3 10 Government 17.6 14.9 13.0 10.4 8.8 9.1 9.1 8.3 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 73.1 73.3 74.4 75.7 13 Government account series3 185.1 196.7 205.4 231.9 259.5 286.2 292.2 311.0 14 Non-interest-bearing debt 1.3 1.4 1.6 9.8 12.7 2.3 15.5 14.8 By holder4 15 U.S. government agencies and trust funds 192.5 203.3 209.4 236.3 263.1 289.6 295.5 16 Federal Reserve Banks 121.3 131.0 139.3 151.9 155.0 160.9 161.0 17 Private investors 616.4 694.5 848.4 1,022.6 1,154.1 1,212.5 1,254.1 18 Commercial banks 112.1 111.4 131.4 188.8 183.0 183.4 195.0 19 Money market funds 3.5 21.5 42.6 22.8 13.6 25.9 26.6 20 Insurance companies 24.0 29.0 39.1 56.7 73.2 82.3 84.0 21 Other companies 19.3 17.9 24.5 39.7 47.7 51.1 51.9 n.a. 22 State and local governments 87.9 104.3 127.8 155.1 n.a. n.a. n.a. Individuals 23 Savings bonds 72.5 68.1 68.3 71.5 73.7 74.5 75.4 7,4 Other securities 44.6 42.7 48.2 61.9 68.7 69.3 69.9 25 Foreign and international5 129.7 136.6 149.5 166.3 175.5 192.8 186.3 26 Other miscellaneous investors6 122.8 163.0 217.0 259.8 n.a. 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 A31 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1985 1985 week ending Wednesday IItteemm 11998822 11998833 11998844'' July' Aug.' Sept. Aug. 21' Aug. 28' Sept. 4 Sept. 11 Sept. 18 Sept. 25 Immediate delivery1 1 U.S. government securities 32,261' 42,135 52,778 65,865 70,830 62,936 72,481 62,500 69,890 60,718 56,121 73,637 By maturity 2 Bills 18,393' 22,393 26,035 29,397 29,973 27,644 30,881 26,509 31,772 27,659 26,157 29,482 3 Other within 1 year 810 708 1,305 1,561 1,636 1,683 1,581 1,634 1,572 1,384 1,572 1,820 4 1-5 years 6,271 8,758 11,733 15,969 17,397 15,299 20,082 16,660 13,303 13,558 13,321 21,179 5-10 years 3,555 5,279 7,606 10,816 11,266 10,464 9,885 9,290 14,916 10,015 8,623 12,537 6 Over 10 years 3,232 4,997 6,099 8,121 10,558 7,847 10,051 8,407 8,327 8,102 6,448 8,620 By type of customer 7 U.S. government securities dealers 1,770 2,257 2,919 2,476 2,922 2,946 2,039 2,916 3,439 3,407 2,822 2,548 8 U.S. government securities brokers 15,794 21,045 25,580 33,393 34,565 30,768 36,641 28,555 31,416 30,234 27,734 37,087 9 All others2 14,697 18,833' 24,278 29,995 33,342 29,223 33,801 31,028 35,036 27,077 25,565 34,002 10 Federal agency securities 4,140 5,576 7,846 10,797 10,964 11,667 14,333 10,036 9,348 13,429 13,809 11,083 11 Certificates of deposit 5,001' 4,333 4,947 3,891 3,245 3,379 3,350 2,867 3,103 3,645 3,005 4,021 12 Bankers acceptances 2,502 2,642 3,243 3,245 2,999 3,012 3,298 2,609 3,015 2,924 2,625 3,762 13 Commercial paper 77,,559955 8,036 10,018 13,390 13,027 13,466 13,980 12,509 13,960 13,480 1133,,443355 14,009 Futures transactions3 14 Treasury bills 5,055 6,655 6,947 4,047 3,942 5,836 4,649 2,802 6,135 6,374 5,135 6,654 15 Treasury coupons 1,487 2,501 4,503 4,963 5,618 6,546 5,439 5,247 5,414 7,382 5,462 8,026 16 Federal agency securities 261 265 262 155 346 234 262 502 305 277 259 208 Forward transactions4 17 U.S. government securities 835 1,493 1,364 1,157 1,271 1,034 1,235 1,174 1,054 782 803 1,607 18 Federal agency securities 978 1,646 2,843 3,492 3,580 3,810 4,425 2,775 3,124 4,679 4,566 3,121 1. Data for immediate transactions does not 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 DomesticN onfinancial Statistics • December 1985 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing Averages of daily figures, in millions of dollars 1985 1985 week ending Wednesday IItteemm 11998822 11998833 11998844 July Aug. Sept. Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 Positions Net immediate1 1 U.S. government securities 14,769' 14,224' 5,538 293' 1,433 2,287 3,971 5,923 836 1,201 2,923 2 Bills 8,226' io.soc 5,500 2,973 5,327 6,412 5,280 6,317 4,483 5,988 7,490 3 Other within 1 year 1,088' 921' 63 1,293 1,376 1,059 1,356 1,459 1,007 1,089 946 4 1-5 years 3,293' 1,912' 2,159 6,511' 4,442 5,733 4,277 5,431 4,985 4,550 6,733 5 5-10 years -318 -78 -1,119 -7,230 -6,199 -6,381 -5,084 -4,924 -5,819 -5,825 -6,794 6 Over 10 years 2,026 528 -1,174 -3,412 -3,670 -4,737 -2,034 -2,544 -4,006 -4,805 -5,661 7 Federal agency securities 4,169' 7,313' 15,294 23,461 23,108 23,787 22,944 23,048 24,129 24,227 23,768 8 Certificates of deposit 5,532 5,838' 7,369 8,9% 8,207' 8,288 8,212 8,315 8,303 8,013 8,107 9 Bankers acceptances 2,832 3,332 3,874 4,607 4,213' 4,180 3,766' 4,313 3,870 3,488' 4,442 10 Commercial paper 3,317 3,159 3,788 4,786 4,905 5,624 4,417 5,168 5,770 5,132 5,3% Futures positions 11 Treasury bills -2,507 -4,125 -4,525 -4,794' -6,699 -6,224 -7,700 -7,047 -3,629 -3,822 -8,783 12 Treasury coupons -2,303 -1,033' 1,794 4,444' 5,169 5,122 4,638 3,757 4,201 4,995 5,990 13 Federal agency securities -224 171 233 -1,161 -530 -1,209 -282 -692 -1,238 -1,033 -1,409 Forward positions 14 U.S. government securities -788 -1,936 -1,643 -1,086 -700' -1,464 -453 -706 -1,199 -1,620 -1,480 15 Federal agency securities -1,432 -3,561 -9,205 -8,941 -10,793 -10,433 -10,638 -10,599 -11,156 -11,143 -9,929 Financing2 Reverse repurchase agreements3 16 Overnight and continuing 26,754 29,099 44,078 68,93<y 69,377 72,392 66,067 70,024 74,397 70,935 71,849 17 Term agreements 48,247 52,493 68,357 74,930 78,394 80,007 80,744 74,143 79,871 80,423 82,305 Repurchase agreements4 18 Overnight and continuing 49,695 57,946 75,717 100,429 103,403 107,884 105,336 105,249 109,149 107,615 107,943 19 Term agreements 43,410 44,410 57,047 151,085 67,346 67,645 67,878 65,766 66,890 64,815 71,234 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 is, 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. Before 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. Data for on a commitment basis. Data for financing are based on Wednesday figures, in immediate positions does not 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 A33 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period Agency 1983 1984 Apr. May July Aug. 1 Federal and federally sponsored agencies 237,085 239,716 271,564 275,093 275,209 278,697 284,870' 286,106' 289,224 2 Federal agencies 33,055 33,940 35,145 35,140 35,182 34,915' 35,646' 35,354' 35,338 3 Defense Department1 354 243 142 116 107 102 97 93 89 4 5 E Fe x d p e o r r a t l - I H m o p u o s r i t ng B a A n d k m 2 3 i nistration4 14, 2 2 8 1 8 8 14,8 1 5 9 3 4 15,8 1 8 3 2 3 15,7 1 0 2 9 7 15,7 1 0 2 7 3 15,7 1 0 2 6 2 15,7 1 4 19 6 ' 15,7 11 46 8 ' 15,7 1 4 1 4 6 6 Government National Mortgage Association participation certificates5 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 7 Postal Service6 1,471 1,404 1,337 1,337 1,337 970' 970 970 970 8 Tennessee Valley Authority 14,365 14,970 15,435 15,635 15,776 15,776 16,475 16,188 16,180 9 United States Railway Association6 194 111 51 51 74 74 74 74 74 10 Federally sponsored agencies7 204,030 205,776 236,419 239,953 240,027 243,782 249,224' 250,752' 253,886 11 Federal Home Loan Banks 55,967 48,930 65,085 65,700 65,257 67,765 69,898 70,244 71,949 12 Federal Home Loan Mortgage Corporation. 4,524 6,793 10,270 11,882 12,004 12,167 12,723 13,197 13,393 13 Federal National Mortgage Association8 ... 70,052 74,594 83,720 86,297 86,913 88,170 89,518 90,208 91,318 14 Farm Credit Banks 71,896 72,409 71,255 70,161 69,882 69,321 70,039' 70,069' 70,092 15 Student Loan Marketing Association 1,591 3,050 5,369 5,913 5,971 6,359 7,046' 7,034' 7,134 MEMO 16 Federal Financing Bank debt 126,424 135,791 145,217 147,507 148,718 149,597 149,957' 152,962' 152,941 Lending to federal and federally sponsored agencies 17 Export-Import Bank3 14,177 14,789 15,852 15,690 15,690 15,690 15,729 15,729 15,729 18 Postal Service6 1,221 1,154 1,087 1,087 1,087 720 720 720 720 19 Student Loan Marketing Association 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 20 Tennessee Valley Authority 12,640 13,245 13,710 13,910 14,051 14,154 14,750 14,463 14,455 21 United States Railway Association6 194 111 51 51 74 74 74 74 74 Other Lending10 22 Farmers Home Administration 53,261 55,266 58,971 59,756 60,641 61,461 62,606 63,546 63,779 23 Rural Electrification Administration 17,157 19,766 20,693 20,730 20,894 21,003 21,183 21,364 21,463 24 Other 22,774 26,460 29,853 31,283 31,281 31,495 31,909 32,066 31,721 1. Consists of mortgages assumed by the Defense Department between 1957 7. Includes outstanding noncontingent liabilities: Notes, bonds, and debenand 1963 under family housing and homeowners assistance programs. tures. 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 8. Before late 1981, the Association obtained financing through the Federal 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. Financing Bank. 4. Consists of debentures issued in payment of Federal Housing Administration 9. The FFB, which began operations in 1974, is authorized to purchase or sell insurance claims. Once issued, these securities may be sold privately on the obligations issued, sold, or guaranteed by other federal agencies. Since FFB securities market. incurs debt solely for the purpose of lending to other agencies, its debt is not 5. Certificates of participation issued before fiscal 1969 by the Government included in the main portion of the table in order to avoid double counting. National Mortgage Association acting as trustee for the Farmers Home Adminis- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter tration; Department of Health, Education, and Welfare; Department of Housing contain loans guaranteed by numerous agencies with the guarantees of any and Urban Development; Small Business Administration; and the Veterans particular agency being generally small. The Farmers Home Administration item Administration. consists exclusively of agency assets, while the Rural Electrification Administra- 6. Off-budget. tion entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 DomesticN onfinancial Statistics • December 1985 1.45 NEW SECURITY ISSUES State and Local Governments Millions of dollars 1984 1985 Type of issue or issuer, 11998822 11998833 11998844 or use Dec. Jan. Feb. Mar. Apr. May June' July 1 All issues, new and refunding1 79,138 86,421 106,641 17,713 6,607 8,510 9,873 12,095 14,097 11,801 12,013 Type of issue 2 General obligation 21,094 21,566 26,485 2,185 1,887 3,527 2,998 3,265 4,535 2,739 5,174 3 U.S. government loans2 225 96 16 2 7 0 5 0 2 0 0 4 Revenue 58,044 64,855 80,156 15,528 4,720 4,983 6,875 8,830 9,562 9,062 6,839 5 U.S. government loans2 461 253 17 0 3 0 0 2 0 1 6 Type of issuer 6 State 8,438 7,140 9,129 725 369 1,559 252 958 1,298 350 786 7 Special district and statutory authority 45,060 51,297 63,550 11,894 4,045 4,493 5,754 7,279 8,126 7,625 6,703 8 Municipalities, counties, townships, school districts 25,640 27,984 33,962 5,094 2,193 2,458 3,867 3,858 4,673 3,826 4,524 9 Issues for new capital, total 74,804 72,441 94,050 16,354 5,206 5,890 8,253 9,075 9,279 7,966 7,579 Use of proceeds 10 Education 6,482 8,099 7,553 671 757 950 1,018 1,121 1,169 962 787 11 Transportation 6,256 4,387 7,552 1,339 347 472 173 319 631 276 583 12 Utilities and conservation 14,259 13,588 17,844 4,133 1,359 1,008 1,491 2,347 1,478 1,844 890 13 Social welfare 26,635 26,910 29,928 3,598 1,670 1,848 3,155 3,105 3,454 2,956 3,120 14 Industrial aid 8,349 7,821 15,415 5,572 389 353 584 293 782 560 490 15 Other purposes 12,822 11,637 15,758 1,041 684 1,259 1,832 1,890 1,765 1,368 1,709 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 1985 Type of i o s r s u u e s e o r issuer, 11998822 11998833 11998844 Jan. Feb. Mar. Apr. May June July Aug. p 1 All issues1 84,638 120,074 132,311 7,294 6,743 14,005 11,790 12,896 19,391 11,835' 14,187 2 Bonds2 54,076 68,495 109,683 5,739 4,027 11,641 8,850 9,738 15,651 8,628 11,231 Type of offering 3 Public 44,278 47,369 73,357 5,739 4,027 11,641 8,850 9,738 15,651 8,628 11,231 4 Private placement 9,798 21,126 36,326 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 12,822 16,851 24,607 1,326 1,476 5,660 922 1,500 8,044 2,688 2,352 6 Commercial and miscellaneous 5,442 7,540 13,726 144 469 974 1,317 639 865 1,642 911 7 Transportation 1,491 3,833 4,694 297 30 130 334 357 512 76 459 8 Public utility 12,327 9,125 10,679 309 80 500 860 1,136 585 423 835 9 Communication 2,390 3,642 2,997 375 353 300 0 150 125 110 1,295 10 Real estate and financial 19,604 27,502 52,980 3,288 1,619 4,077 5,418 5,956 5,520 3,689 5,379 11 Stocks3 30,562 51,579 22,628 1,555 2,716 2,364 2,940 3,158 3,740 3,207' 2,956 Type 12 Preferred 5,113 7,213 4,118 170 218 311 312 634 726 631 603 13 Common 25,449 44,366 18,510 1,385 2,498 2,053 2,628 2,524 3,014 2,576' 2,353 Industry group 14 Manufacturing 5,649 14,135 4,054 172 229 224 283 504 558 601 225 15 Commercial and miscellaneous 7,770 13,112 6,277 234 760 472 1,019 624 1,453 562 1,288 16 Transportation 709 2,729 589 0 153 32 522 33 236 0 79 17 Public utility 7,517 5,001 1,624 225 283 197 157 185 91 87 73 18 Communication 2,227 1,822 419 271 101 15 5 119 151 99 18 19 Real estate and financial 6,690 14,780 9,665 653 1,190 1,424 954 1,693 1,251 1,798 1,273 1. Figures, which represent gross proceeds of issues maturing in more than one 2. Monthly data 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 1985 IItteemm 11998833 11998844 Jan. Feb. Mar. Apr. May June July' Aug. INVESTMENT COMPANIES1 1 Sales of own shares2 84,345 107,486' 19,152 14,786 14,582 18,049 16,408 18,191 20,284 18,049 2 Redemptions of own shares3 57,100 77,029' 9,183 8,005 9,412 13,500 10,069 9,836 11,502 10,837 3 Net sales 27,245 30,457 9,969 6,781 5,170 4,549 6,339 8,355 8,782 7,212 4 Assets4 113,599 137,126 151,534 154,707 157,065 164,087 178,275 186,284 195,707 201,632 5 Cash position5 8,343 11,978 13,114 14,567 13,082 15,444 15,017 15,565 16,943 17,957 6 Other 105,256 125,148 138,420 140,140 143,983 148,643 163,258 170,719 178,764 183,675 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. 1983 1984 1985 AAccccoouunntt 11998822 11998833 11998844 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 1 Corporate profits with inventory valuation and capital consumption adjustment 159.1 225.2 285.7 245.0 260.0 277.4 291.1 282.8 291.6 292.3 298.5 2 Profits before tax 165.5 203.2 235.7 227.4 225.5 243.3 246.0 224.8 228.7 222.3 221.0 3 Profits tax liability 60.7 75.8 89.8 84.7 84.5 92.7 95.8 83.1 87.7 85.3 83.6 4 Profits after tax 104.8 127.4 145.9 142.6 141.1 150.6 150.2 141.7 141.0 137.0 137.4 5 Dividends 69.2 72.9 80.5 73.3 75.4 77.7 79.9 81.3 83.1 84.5 85.6 6 Undistributed profits 35.6 54.5 65.3 69.3 65.6 72.9 70.2 60.3 58.0 52.5 51.8 7 Inventory valuation -9.5 -11.2 -5.6 -19.3 -9.2 -13.5 -7.3 -.2 -1.6 .9 2.5 8 Capital consumption adjustment 3.1 33.2 55.7 36.9 43.6 47.6 52.3 58.3 64.5 69.1 75.0 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • December 1985 1.49 NONFINANCIAL CORPORATIONS Assets and Liabilities Billions of dollars, except for ratio 1984 1985 AAccccoouunntt 11997799 11998800 11998811 11998822 11998833 Q2 Q3 Q4 Qlr Q2 1 Current assets 1,214.8 1,327.0 1,418.4 1,432.7 1,557.3 1,630.1 1,666.1 1,682.0 1,694.7 1,704.0 2 Cash 118.0 126.9 135.5 147.0 165.8 154.7 150.0 160.9 153.5 154.6 3 U.S. government securities 16.7 18.7 17.6 22.8 30.6 36.9 33.2 36.6 35.2 35.1 4 Notes and accounts receivable 459.0 506.8 532.0 519.2 577.8 615.4 630.6 622.3 635.2 635.9 5 Inventories 505.1 542.8 583.7 578.6 599.3 629.8 656.9 655.6 664.6 663.7 6 Other 116.0 131.8 149.5 165.2 183.7 193.4 195.4 206.6 206.2 214.7 7 Current liabilities 807.3 889.3 970.0 976.8 1,043.0 1,111.9 1,142.2 1,150.7 1,159.5 1,163.9 8 Notes and accounts payable 460.8 513.6 546.3 543.0 577.8 605.1 623.9 627.4 615.6 • 625.9 9 Other 346.5 375.7 423.7 433.8 465.3 506.9 518.2 523.3 543.9 538.1 10 Net working capital 407.5 437.8 448.4 455.9 514.3 518.1 523.9 531.3 535.2 540.1 11 MEMO: Current ratio1 1.505 1.492 1.462 1.467 1.493 1.466 1.459 1.462 1.462 1.464 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 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1984 1985 IInndduussttrryy 11998833 11998844 11998855'' Q1 Q2 Q3 Q4 Q1 Q2R Q3LR Q4< 1 Total nonfarm business 304.78 354.44 383.98 337.95 349.97 361.48 368.29 371.16 387.83 389.54 387.40 Manufacturing 2 Durable goods industries 53.08 66.24 73.58 61.23 64.03 68.26 71.43 69.87 73.% 75.80 74.68 3 Nondurable goods industries 63.12 72.58 79.86 68.68 71.93 74.18 75.53 75.78 80.36 82.02 81.30 Nonmanufacturing 4 Mining 15.19 16.86 16.08 17.24 16.38 16.82 17.00 15.66 16.51 16.32 15.81 Transportation 5 Railroad 4.88 6.79 7.24 6.06 7.34 7.31 6.44 6.02 7.48 8.06 77..4433 6 Air 4.36 3.56 4.28 3.35 3.53 3.72 3.65 4.20 3.66 4.86 4.39 7 Other 4.72 6.17 6.05 5.87 6.14 6.47 6.18 6.01 6.37 6.09 5.74 Public utilities 8 Electric 37.27 37.03 35.53 38.27 37.79 36.63 35.40 36.65 36.04 35.29 34.13 9 Gas and other 7.70 10.44 12.56 8.81 10.16 11.28 11.52 11.81 12.43 13.11 12.86 10 Commercial and other2 114.45 134.75 148.81 128.42 132.67 136.80 141.13 145.16 151.02 148.00 151.05 •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). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A37 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities A Billions of dollars, end of period Q4 Q1 Q2 Q3 Q4 Q1 Q2 ASSETS Accounts receivable, gross 1 Consumer 63.2 72.4 78.1 87.4 87.4 90.5 95.6 96.7 99.1 106.0 2 Business 90.3 100.3 101.4 113.4 120.5 124.4 124.5 135.2 142.1 144.6 3 Real estate 13.8 17.9 20.2 22.5 22.2 23.0 25.2 26.3 27.2 28.4 4 Total 167.3 190.5 199.7 223.4 230.1 238.0 245.3 258.3 268.5 279.0 Less: 5 Reserves for unearned income . 23.6 30.0 31.9 33.0 32.8 33.9 36.0 36.5 36.6 38.6 6 Reserves for losses 2.8 3.2 3.5 4.0 4.1 4.4 4.3 4.4 4.9 4.8 7 Accounts receivable, net. 140.9 157.3 164.3 186.4 193.2 199.6 205.0 217.3 227.0 235.6 8 All other 23.1 27.1 30.7 34.0 35.7 35.8 36.4 35.4 35.9 39.5 9 Total assets. 262.9 275.2 LIABILITIES 10 Bank loans 14.3 16.1 18.3 18.7 16.2 18.3 19.7 21.3 19.8 18.5 11 Commercial paper 47.7 57.2 51.1 59.7 64.8 68.5 66.8 72.5 79.1 82.6 Debt 12 Other short-term 10.4 11.3 12.7 13.9 14.1 15.5 16.1 16.2 16.8 16.6 13 Long-term 52.4 56.0 64.4 68.1 70.3 69.7 73.8 77.2 78.3 85.7 14 All other liabilities 15.9 18.5 21.2 30.1 32.4 32.1 32.6 33.1 35.4 36.9 15 Capital, surplus, and undivided profits. 23.3 25.3 27.4 29.8 31.1 31.4 32.3 32.3 33.5 34.8 16 Total liabilities and capital 164.0 184.4 195.0 220.4 228.9 235.4 241.3 252.7 262.9 275.2 A Finance company asset and liability data have been revised from June 1980 NOTE. Components may not add to totals due to rounding. forward. Revised quarterly data will appear in the Board's forthcoming Annual These data also appear in the Board's G.20 (422) release. For address, see Statistical Digest. 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 1985 1985 1985 AAAuuuggg... 333111,,, 111999888555''' June July Aug. June July Aug. June July Aug. 1 Total 143,644 508 580 1,987 25,455 25,791 28,942 24,947 25,211 26,955 Retail financing of installment sales 2 Automotive (commercial vehicles) 13,176 146 366 389 948 1,170 1,212 802 804 823 3 Business, industrial, and farm equipment 20,405 71 -38 -37 1,347 1,240 1,105 1,276 1,278 1,142 Wholesale financing 4 Automotive 18,100 422 -997 759 9,053 8,497 10,471 8,631 9,494 9,712 5 Equipment 4,467 -160 83 -80 439 638 882 599 555 962 6 All other 6,711 126 30 59 1,517 1,576 1,695 1,391 1,606 1,636 Leasing 7 Automotive 15,474 295 251 461 829 1,090 1,117 534 839 656 8 Equipment 37,706 -174 584 231 1,345 1,223 1,048 1,519 639 817 9 Loans on commercial accounts receivable and factored commercial accounts receivable 15,942 -268 207 -146 8,917 9,201 9,994 9,185 8,994 10,140 10 All other business credit 11,663 50 154 351 1,060 1,156 1,418 1,010 1,002 1,067 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

A38 Domestic Nonfinancial Statistics • December 1985 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1985 Mar. Apr. May June July Aug. Sept. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 94.6 92.8 96.8 91.3 101.4 106.4 102.4 119.2 104.4 103.8 2 Amount of loan (thousands of dollars) 69.8 69.5 73.7 69.9 76.9 78.4 79.7 89.4 74.4 75.8 3 Loan/price ratio (percent) 76.6 77.1 78.7 79.8 78.9 76.1 79.9 77.5 74.6 75.8 4 Maturity (years) 27.6 26.7 27.8 27.2 27.4 26.8 27.7 27.5 24.5 26.8 5 Fees and charges (percent of loan amount)2 2.95 2.40 2.64 2.65 2.65 2.49 2.40 2.24 2.46 2.65 6 Contract rate (percent per annum) 14.47 12.20 11.87 11.42 11.55 11.55 11.31 10.94 10.78 10.68 Yield (percent per annum) 7 FHLBB series5 15.12 12.66 12.37 11.92 12.05 12.01 11.75 11.34 11.24 11.15 8 HUD series4 15.79 13.43 13.80 13.26 13.01 12.49 12.06 12.09 12.06 n.a. SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 15.30 13.11 13.81 13.43 12.97 12.28 11.89 12.12 n.a. n.a. 10 GNMA securities6 14.68 12.25 13.13 12.68 12.31 11.93 11.54 11.48 11.24 11.29 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 66,031 74,847 83,339 91,975 92,765 93,610 94,777 95,634 96,324 96,769 12 FHA/VA-insured 39,718 37,393 35,148 34,585 34,516 34,428 34,307 34,276 34,177 34,084 13 Conventional 26,312 37,454 48,191 57,391 58,250 59,182 60,470 61,359 62,147 62,685 Mortgage transactions (during period) 14 Purchases 15,116 17,554 16,721 2,256 1,515 1,703 1,904 1,918 1,921 1,739 15 Sales 2 3,528 978 100 0 0 0 251 230 101 Mortgage commitments1 16 Contracted (during period) 22,105 18,607 21,007 1,636 1,921 2,074 1,593 1,583 1,797 1,638 17 Outstanding (end of period) 7,606 5,461 6,384 5,019 5,361 5,589 5,062 4,517 4,245 3,974 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 18 Total 5,131 5,9% 9,283 11,549 11,615 11,879 12,576 12,844 13,521 n.a. 19 FHA/VA 1,027 974 910 854 850 843 838 842 835 n.a. 20 Conventional 4,102 5,022 8,373 10,694 10,765 11,036 11,738 12,002 12,686 n.a. Mortgage transactions (during period) 21 Purchases 23,673 23,089 21,886 3,232 2,201 3,591 4,106 4,626 3,602 n.a. 22 Sales 24,170 19,686 18,506 2,751 1,973 3,189 3,292 4,200 2,682 n.a. Mortgage commitments9 23 Contracted (during period) 28,179 32,852 32,603 3,453 4,141 3,701 5,172 3,259 3,958 n.a. 24 Outstanding (end of period) 7,549 16,964 13,318 30,436 n.a. n.a. n.a. n.a. n.a. n.a. 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 averages of Friday figures from the borrower or the seller) to obtain a loan. Wall Street Journal. 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

Real Estate A39 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1984 1985 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998822 11998833 11998844 Q2 Q3 Q4 Q1 Q2 1 AU holders 1,631,283 1,811,445 2,024,799' 1,919,082 1,975,197 2,024,799' 2,070,918' 2,127,628' ? 1- to 4-family 1,074,670 1,192,840 1,331,522' 1,263,236 1,298,583 1,331,522' 1,363,571' 1,402,163' 3 145,767 156,738 171,339' 165,088 167,439 171,339' 174,937' 179,027' 4 300,799 349,195 407,066' 376,617 394,144 407,066' 418,215' 432,213' 5 110,047 112,672 114,872' 114,141 115,031 114,872' 114,195' 114,225' Major financial institutions 1,021,327 1,108,249 1,241,098' 1,177,662 1,215,160 1,241,098' 1,261,901' 1,292,236' 7 Commercial banks' 301,272 330,521 374,681 352,258 363,156 374,681 383,444 395,755 8 1- to 4-family 173,804 182,514 196,070 190,185 193,090 196,070 198,912 203,299 9 Multifamily 16,480 18,410 21,432 20,501 20,083 21,432 21,974 22,716 10 Commercial 102,553 120,210 146,650 131,533 139,742 146,650 152,242 159,094 11 Farm 8,435 9,387 10,529 10,039 10,241 10,529 10,316 10,646 1? Mutual savings banks 94,452 131,940 154,441 143,387 146,073 154,441 161,032' 165,704' 13 1- to 4-family 64,488 93,649 109,890 102,122 103,824 109,890 114,736' 118,204' 14 Multifamily 14,780 17,247 19,385 18,227 18,580 19,385 20,078' 20,578' 15 Commercial 15,156 21,016 25,136 23,009 23,639 25,136 26,188' 26,891' 16 Farm 28 28 30 29 30 30 30 31 17 Savings and loan associations 483,614 494,789 555,277 528,172 550,129 555,277 559,263 569,292 18 1- to 4-family 393,323 390,883 431,450 414,087 429,101 431,450 433,429 441,201 19 Multifamily 38,979 42,552 48,309 45,951 47,861 48,309 48,936 49,813 20 Commercial 51,312 61,354 75,518 68,134 73,167 75,518 76,898 78,278 71 Life insurance companies 141,989 150,999 156,699' 153,845 155,802 156,699' 158,162' 161,485' V 1- to 4-family 16,751 15,319 14,12c 14,437 14,204 14.12C 13,84C 13,562' 73 Multifamily 18,856 19,107 18,938' 19,028 18,828 18,938' 18,964' 18,983' 74 Commercial 93,547 103,831 111,175' 107,796 110,149 111,175' 113,187' 116,812' 25 Farm 12,835 12,742 12,466' 12,584 12,621 12,466' 12,171' 12,128' 76 Federal and related agencies 138,741 148,328 158,993 153,897 154,768 158,993 163,547 166,504 77 Government National Mortgage Association 4,227 3,395 2,301 2,715 2,389 2,301 1,964 1,825 78 1- to 4-family 676 630 585 605 594 585 576 564 29 Multifamily 3,551 2,765 1,716 2,110 1,795 1,716 1,388 1,261 30 Farmers Home Administration 1,786 2,141 1,276 1,344 738 1,276 1,062 790 31 1- to 4-family 783 1,159 213 281 206 213 156 223 3? Multifamily 218 173 119 463 126 119 82 136 33 Commercial 377 409 497 81 113 497 421 163 34 Farm 408 400 447 519 293 447 403 268 35 Federal Housing and Veterans Administration 5,228 4,894 4,816 4,753 4,749 44,,881166 44,,887788 44,,888822 36 1- to 4-family 1,980 1,893 2,048 1,894 1,982 2,048 2,181 2,205 37 Multifamily 3,248 3,001 2,768 2,859 2,767 2,768 2,697 2,677 38 Federal National Mortgage Association 71,814 78,256 87,940 83,243 84,850 87,940 91,975 94,777 39 1- to 4-family 66,500 73,045 82,175 77,633 79,175 82,175 86,129 88,788 40 Multifamily 5,314 5,211 5,765 5,610 5,675 5,765 5,846 5,989 41 Federal Land Banks 50,953 52,010 52,261 52,364 52,595 52,261 52,120 51,654 4? 1- to 4-family 3,130 3,081 3,074 3,061 3,068 3,074 3,080 3,053 43 Farm 47,823 48,929 49,187 49,303 49,527 49,187 49,040 48,601 44 Federal Home Loan Mortgage Corporation 4,733 7,632 10,399 9,478 9,447 10,399 11,548 12,576 45 1- to 4-family 4,686 7,559 9,654 8,931 8,841 9,654 10,642 11,288 46 Multifamily 47 73 745 547 606 745 906 1,288 47 Mortgage pools or trusts2 216,654 285,073 332,057 305,051 317,548 332,057 347,793 365,748 48 Government National Mortgage Association 118,940 159,850 179,981 170,893 175,770 179,981 185,954 192,925 49 1- to 4-family 116,038 155,950 175,589 166,723 171,481 175,589 181,419 188,228 50 Multifamily 2,902 3,900 4,392 4,170 4,289 4,392 4,535 4,697 51 Federal Home Loan Mortgage Corporation 42,964 57,895 70,822 61,267 63,964 70,822 76,759 83,327 57 42,560 57,273 70,253 60,636 63,352 70,253 75,781 82,369 53 Multifamily 404 622 569 631 612 569 978 958 54 Federal National Mortgage Association3 14,450 25,121 36,215 29,256 32,888 36,215 39,370 42,755 55 1- to 4-family 14,450 25,121 35,965 29,256 32,730 35,965 38,772 41,985 56 Multifamily n.a. n.a. 250 n.a. 158 250 598 770 57 Farmers Home Administration 40,300 42,207 45,039 43,635 44,926 45,039 45,710 46,741 58 20,005 20,404 21,813 21,331 21,595 21,813 21,928 21,962 59 4,344 5,090 5,841 5,081 5,618 5,841 6,041 6,377 60 Commercial 7,011 7,351 7,559 7,764 7,844 7,559 7,681 8,014 61 Farm 8,940 9,362 9,826 9,459 9,869 9,826 10,060 10,388 6? Individual and others4 254,561 269,795 292,651 282,472 287,721 292,651 297,677 303,140 63 1- to 4-family5 155,496 164,360 178,623 172,054 175,340 178,623 181,990 185,232 64 Multifamily 36,644 38,587 41,110 39,910 40,441 41,110 41,914 42,784 65 30,843 35,024 40,531 38,300 39,490 40,531 41,598 42,961 66 Farm 31,578 31,824 32,387 32,208 32,450 32,387 32,175 32,163 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

A40 DomesticN onfinancial Statistics • December 1985 1.55 CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net Change Millions of dollars 1984 1985 Dec. Jan. Feb. Mar. Apr. May June July Aug. Amounts outstanding (end of period) 1 Total 383,701 460,500 460,500 461,530 463,628 471,567 479,935 488,666 495,813 503,834 512,983 By major holder 2 Commercial banks 171,978 212,391 212,391 213,951 215,778 219,970 223,850 226,973 229,676 232,913 236,390 3 Finance companies 87,429 96,747 96,747 96,732 97,360 99,133 101,324 104,130 105,971 107,985 110,378 4 Credit unions 53,471 67,858 67,858 68,538 68,939 70,432 71,418 72,381 73,468 74,614 76,279 5 Retailers2 37,470 40,913 40,913 38,978 37,483 37,082 37,091 37,472 37,548 37,399 37,481 6 Savings and loans 23,108 29,945 29,945 30,520 31,405 32,349 33,514 34,754 35,901 37,301 38,496 7 Gasoline companies 4,131 4,315 4,315 4,329 4,012 3,820 3,834 3,918 4,075 4,316 4,467 8 Mutual savings banks 6,114 8,331 8,331 8,482 8,651 8,781 8,904 9,038 9,174 9,306 9,492 By major type of credit 9 Automobile 143,114 172,589 172,589 173,769 175,491 179,661 183,558 187,795 191,315 194,678 198,050 10 Commercial banks 67,557 85,501 85,501 86,223 87,333 89,257 90,915 92,403 94,099 95,763 96,576 11 Credit unions 25.574 32,456 32,456 32,781 32,973 33,687 34,159 34,620 35,139 35,687 36,483 12 Finance companies 49,983 54,632 54,632 54,765 55,185 56,717 58,484 60,772 62,077 63,228 64,991 13 Revolving 81,977 101,555 101,555 100,565 99,316 100,434 101,887 103,492 104,333 105,539 107,584 14 Commercial banks 44,184 60,549 60,549 61,445 61,978 63,684 65,127 66,311 66,956 68,093 69,949 15 Retailers 33,662 36,691 36,691 34,791 33,326 32,930 32,926 33,263 33,302 33,130 33,168 16 Gasoline companies 4,131 4,315 4,315 4,329 4,012 3,820 3,834 3,918 4,075 4,316 4,467 17 Mobile home 23,862 24,556 24,556 24,281 24,379 24,456 24,675 24,925 25,205 25,545 25,833 18 Commercial banks 9,842 9,610 9,610 9,498 9,456 9,425 9,432 9,445 9,480 9,493 9,550 19 Finance companies 9,547 9,243 9,243 9,053 9,044 8,981 8,992 9,016 9,061 9,146 9,163 20 Savings and loans 3,906 4,985 4,985 5,005 5,150 5,305 5,496 5,699 5,887 6,117 6,313 21 Credit unions 567 718 718 725 729 745 755 765 777 789 807 22 Other 134,748 161,800 161,800 162,915 164,442 167,016 169,815 172,454 174,960 178,072 181,516 23 Commercial banks 50,395 56,731 56,731 56,785 57,011 57,604 58,376 58,814 59,141 59,564 60,315 24 Finance companies 27,899 32,872 32,872 32,914 33,131 33,435 33,848 34,342 34,833 35,611 36,224 25 Credit unions 27,330 34,684 34,684 35,032 35,237 36,000 36,504 36,996 37,552 38,138 38,989 26 Retailers 3,808 4,222 4,222 4,187 4,157 4,152 4,165 4,209 4,246 4,269 4,313 27 Savings and loans 19,202 24,960 24,960 25,515 26,255 27,044 28,018 29,055 30,014 31,184 32,183 28 Mutual savings banks 6,114 8,331 8,331 8,482 8,651 8,781 8,904 9,038 9,174 9,306 9,492 Net change (during period) 29 Total 48,742 76,799 6,819 7,223 9,041 8,342 8,270 9,042 5,227 6,247 6,312 By major holder JO Commercial banks 19,488 40,413 3,028 3,799 5,071 4,847 3,853 4,108 1,690 1,824 1,764 31 Finance companies 18,572 18,636 1,196 901 1,203 2,048 1,885 2,373 1,218 1,629 2,371 32 Credit unions 6,218 14,387 1,336 1,290 1,423 797 1,215 673 797 1,149 1,065 33 Retailers2 5,075 3,443 389 251 269 91 168 341 -31 112 -99 34 Savings and loans 7,285 6,837 576 922 997 715 1,063 1,327 1,417 1,338 969 35 Gasoline companies 68 184 117 -91 -102 -142 -45 59 -51 21 103 36 Mutual savings banks 1,322 2,217 177 151 180 -14 131 161 187 174 139 By major type of credit 37 Automobile 16,856 29,475 2,687 2,887 3,198 3,391 3,488 3,792 2,686 2,365 2,486 38 Commercial banks 8,002 17,944 1,275 1,616 1,790 1,767 1,546 1,589 1,488 1,025 136 39 Credit unions 2,978 6,882 640 598 696 381 580 325 380 550 506 40 Finance companies 11,752 9,298 772 673 712 1,243 1,362 1,878 818 790 1,844 41 Revolving 12,353 19,578 1,445 1,957 2,527 2,631 2,126 2,429 -73 856 936 42 Commercial banks 7,518 16,365 1,001 1,809 2,429 2,698 2,003 2,095 42 733 968 43 Retailers 4,767 3,029 327 239 200 75 168 275 -64 102 -135 44 Gasoline companies 68 184 117 -91 -102 -142 -45 59 -51 21 103 45 Mobile home 1,452 694 117 -159 282 -11 218 186 196 324 206 46 Commercial banks 237 -232 29 -89 41 -50 19 -21 -31 -22 3 47 Finance companies 776 -608 -13 -144 33 -63 13 -19 1 74 -13 48 Savings and loans 763 1,079 88 60 192 92 175 219 217 261 204 49 Credit unions 64 151 13 14 16 10 11 7 9 11 12 50 Other 18,081 27,052 2,570 2,538 3,034 2,331 2,438 2,635 2,418 22,,770022 2,684 51 Commercial banks 3,731 6,336 723 463 811 432 285 445 191 8888 657 52 Finance companies 6,044 9,946 437 372 458 868 510 514 399 765 540 53 Credit unions 3,176 7,354 683 678 711 406 624 341 408 588 547 54 Retailers 308 414 62 12 69 16 0 66 33 10 36 55 Savings and loans 6,522 5,758 488 862 805 623 888 1,108 1,200 1,077 765 56 Mutual savings banks 1,322 2,217 177 151 180 -14 131 161 187 174 139 1. The Board's series cover most short- and intermediate-term credit extended NOTE. Total consumer noninstallment credit outstanding—credit scheduled to to individuals through regular business channels, usually to finance the purchase be repaid in a lump sum, including single-payment loans, charge accounts, and of consumer goods and services or to refinance debts incurred for such purposes, service credit—amounted to, not seasonally adjusted, $85.9 billion at the end of and scheduled to be repaid (or with the option of repayment) in two or more 1982, $96.9 billion at the end of 1983, and $116.6 billion at the end of 1984. installments. These data also appear in the Board's G.19 (421) release. For address, see 2. Includes auto dealers and excludes 30-day charge credit held by travel and inside front cover. entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Installment Credit A41 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT Percent unless noted otherwise 1985 IItteemm 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug. INTEREST RATES Commercial banks' 1 48-month new car2 16.82 13.92 13.71 13.37 n.a. n.a. 13.16 n.a. n.a. 12.72 2 24-month personal 18.64 16.50 16.47 16.21 n.a. n.a. 16.09 n.a. n.a. 15.84 3 120-month mobile home2 18.05 16.08 15.58 15.42 n.a. n.a. 15.03 n.a. n.a. 14.72 4 Credit card 18.51 18.78 18.77 18.85 n.a. n.a. 18.74 n.a. n.a. 18.62 Auto finance companies 5 New car 16.15 12.58 14.62 13.78 12.65 11.92 11.87 12.06 12.46 10.87 6 Used car 20.75 18.74 17.85 17.91 17.78 17.78 17.84 17.77 17.49 17.57 OTHER TERMS3 Maturity (months) 7 New car 45.9 45.9 48.3 51.4 52.2 51.5 50.9 51.3 51.7 51.1 8 Used car 37.0 37.9 39.7 41.1 41.3 41.3 41.4 41.3 41.5 41.6 Loan-to-value ratio 9 New car 85 86 88 90 91 91 91 91 91 91 10 Used car 90 92 92 93 93 93 94 94 95 95 Amount financed (dollars) 11 New car 8,178 8,787 9,333 9,196 9,232 9,305 9,775 9,965 10,355 10,422 12 Used car 4,746 5,033 5,691 5,968 5,976 6,043 6,117 6,116 6,146 6,139 1. Data for midmonth of quarter only. 3. At auto finance companies. 2. Before 1983 the maturity for new car loans was 36 months, and for mobile NOTE. These data also appear in the Board's G.19 (421) release. For address, home loans was 84 months. see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • December 1985 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1982' 1983' 1984' 1985 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997799'' 11998800'' 11998811'' 11998822'' 11998833'' H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 388.7 340.0 371.6 398.3 538.9 755.6 442.1 508.8 569.0 704.0 807.3 708.4 By sector and instrument 2 U.S. government 37.4 79.2 87.4 161.3 186.6 198.8 218.4 222.0 151.1 172.7 224.9 182.3 3 Treasury securities 38.8 79.8 87.8 162.1 186.7 199.0 218.8 222.1 151.2 172.9 225.0 182.4 4 Agency issues and mortgages -1.4 -.6 -.5 -.9 -.1 -.2 -.4 -.1 -.1 -.2 -.1 -.1 5 Private domestic nonfinancial sectors 351.3 260.8 284.2 237.0 352.3 556.8 223.7 286.7 417.9 531.3 582.4 526.1 6 Debt capital instruments 213.9 186.3 153.7 153.5 249.1 322.1 167.1 225.4 272.7 281.8 362.4 344.1 7 Tax-exempt obligations 30.3 30.3 23.4 48.6 57.3 65.8 54.6 57.3 57.3 38.9 92.6 80.5 8 Corporate bonds 17.3 26.7 21.8 18.7 16.0 42.3 25.3 21.4 10.6 24.4 60.2 61.4 9 Mortgages 166.2 129.4 108.5 86.2 175.7 214.1 87.1 146.7 204.7 218.5 209.6 202.2 10 Home mortgages 121.7 93.8 71.6 50.4 115.6 139.2 50.1 96.2 135.1 144.8 133.5 140.8 11 Multifamily residential 8.3 7.1 4.8 5.3 9.4 14.0 5.8 6.3 12.6 16.0 12.0 13.9 12 Commercial 24.4 19.2 22.2 25.2 47.6 58.8 27.3 42.3 53.0 55.6 62.0 49.0 13 Farm 11.8 9.3 9.9 5.3 3.0 2.1 3.9 1.9 4.1 2.0 2.1 -1.5 14 Other debt instruments 137.5 74.5 130.5 83.6 103.3 234.8 56.6 61.3 145.2 249.5 220.0 182.0 15 Consumer credit 45.4 4.7 22.7 20.1 59.8 96.5 21.7 44.1 75.5 102.1 90.9 122.3 16 Bank loans n.e.c 51.2 37.0 54.7 54.1 26.7 79.4 41.9 13.7 39.8 90.2 68.7 16.6 17 Open market paper 11.1 5.7 19.2 -4.7 -1.6 23.7 -19.3 -10.0 6.9 33.5 13.8 15.6 18 Other 29.7 27.1 33.9 14.0 18.3 35.2 12.4 13.6 23.1 23.7 46.7 27.6 19 By borrowing sector 351.3 260.8 284.2 237.0 352.3 556.8 223.7 286.7 417.9 531.3 582.4 526.1 20 State and local governments 17.6 17.2 6.8 25.9 37.6 45.0 29.3 36.1 39.2 21.4 68.6 66.6 21 Households 181.0 117.9 119.2 90.4 190.4 249.5 93.5 156.0 224.8 248.2 250.7 273.1 22 Farm 21.4 14.3 16.4 7.9 4.5 2.9 5.9 1.1 7.8 2.1 3.8 -10.5 23 Nonfarm noncorporate 35.3 31.0 38.4 40.9 65.2 77.8 42.1 55.5 75.0 83.0 72.5 69.6 24 Corporate 96.0 80.4 103.4 71.9 54.6 181.7 52.9 38.0 71.1 176.6 186.8 127.3 25 Foreign net borrowing in United States 20.2 27.2 27.2 15.7 18.9 1.7 21.2 15.3 22.5 22.9 -19.5 -14.2 26 Bonds 3.9 .8 5.4 6.7 3.8 4.1 11.0 4.6 2.9 1.1 7.0 4.8 27 Bank loans n.e.c 2.3 11.5 3.7 -6.2 4.9 -7.8 -4.7 11.3 -1.5 -4.6 -11.0 -11.7 28 Open market paper 11.2 10.1 13.9 10.7 6.0 1.4 9.0 -4.6 16.5 20.9 -18.1 -8.8 29 U.S. government loans 2.9 4.7 4.2 4.5 4.3 4.0 6.0 3.9 4.6 5.5 2.6 1.5 30 Total domestic plus foreign 408.9 367.2 398.8 414.0 557.8 757.4 463.3 524.0 591.5 726.9 787.8 694.3 Financial sectors 31 Total net borrowing by financial sectors 82.4 57.6 89.0 76.2 85.2 130.3 57.5 66.7 103.7 119.2 141.3 177.9 By instrument 32 U.S. government related 47.9 44.8 47.4 64.9 67.8 74.9 69.7 66.2 69.4 69.6 80.1 105.0 33 Sponsored credit agency securities 24.3 24.4 30.5 14.9 1.4 30.4 7.5 -4.1 6.9 29.9 31.0 26.1 34 Mortgage pool securities 23.1 19.2 15.0 49.5 66.4 44.4 62.2 70.3 62.5 39.7 49.2 78.9 .6 1.2 1.9 .4 36 Private financial sectors 34.5 12.8 41.6 11.3 17.4 55.4 -12.2 .5 34.4 49.6 61.2 72.8 37 Corporate bonds 7.8 1.8 3.5 9.7 8.6 18.5 11.2 6.4 10.7 12.2 24.7 31.9 38 Mortgages * * * .1 * -.1 .1 * * -.1 -.1 * 39 Bank loans n.e.c -.5 -.9 .9 1.9 -.2 1.0 .6 -2.5 2.2 .3 1.6 * 40 Open market paper 18.0 4.8 20.9 -1.1 16.0 20.4 -14.6 8.7 23.4 21.3 19.5 29.3 41 Loans from Federal Home Loan Banks 9.2 7.1 16.2 .8 -7.0 15.7 -9.5 -12.1 -2.0 15.9 15.5 11.6 By sector 42 Sponsored credit agencies 24.8 25.6 32.4 15.3 1.4 30.4 7.5 -4.1 6.9 29.9 31.0 26.1 43 Mortgage pools 23.1 19.2 15.0 49.5 66.4 44.4 62.2 70.3 62.5 39.7 49.2 78.9 44 Private financial sectors 34.5 12.8 41.6 11.3 17.4 55.4 -12.2 .5 34.4 49.6 61.2 72.8 45 Commercial banks 1.6 .5 .4 1.2 .5 4.4 1.7 .8 .2 4.8 3.9 8.2 46 Bank affiliates 6.5 6.9 8.3 1.9 8.6 10.9 -5.8 6.1 11.1 20.0 1.8 8.2 47 Savings and loan associations 12.6 7.4 15.5 2.5 -2.1 22.7 -9.3 -9.3 5.2 19.7 25.6 5.6 48 Finance companies 15.3 -1.1 18.2 6.3 11.3 18.1 1.9 3.9 18.8 5.6 30.6 51.6 49 REITs -.1 -.5 -.2 * .3 .2 * -.3 -.2 .3 .1 .1 All sectors 50 Total net borrowing 491.3 424.9 487.8 490.2 643.0 887.6 520.8 590.7 695.2 846.1 929.2 872.1 51 U.S. government securities 84.8 122.9 133.0 225.9 254.4 273.8 288.3 288.4 220.5 242.4 305.1 287.4 52 State and local obligations 30.3 30.3 23.4 48.6 57.3 65.8 54.6 57.3 57.3 38.9 92.6 80.5 53 Corporate and foreign bonds 29.0 29.3 30.7 35.0 28.4 64.8 47.5 32.5 24.3 37.7 92.0 98.1 54 Mortgages 166.1 129.3 108.4 86.2 175.6 213.9 87.1 146.6 204.7 218.3 209.4 202.1 55 Consumer credit 45.4 4.7 22.7 20.1 59.8 96.5 21.7 44.1 75.5 102.1 90.9 122.3 56 Bank loans n.e.c 52.9 47.7 59.2 49.9 31.4 72.6 37.8 22.5 40.4 85.9 59.3 4.9 57 Open market paper 40.3 20.6 54.0 4.9 20.4 45.4 -25.0 -5.9 46.8 75.7 15.2 36.1 58 Other loans 42.4 40.1 56.2 19.7 15.5 54.9 8.9 5.3 25.7 45.1 64.8 40.8 External corporate equity funds raised in United States 59 Total new share issues -4.3 21.9 -3.0 35.3 67.8 -33.1 47.2 83.4 52.1 -40.8 -25.5 25.4 60 Mutual funds .1 5.2 6.3 18.4 32.8 37.7 24.3 36.8 28.9 39.6 35.7 94.9 61 All other -4.3 16.8 -9.3 16.9 35.0 -70.8 22.9 46.7 23.2 -80.4 -61.2 -69.5 62 Nonfinancial corporations -7.8 12.9 -11.5 11.4 28.3 -77.0 15.8 38.2 18.4 -84.5 -69.4 -78.7 63 Financial corporations 2.7 1.8 1.9 4.0 2.7 5.1 4.1 2.7 2.6 4.8 5.3 5.4 64 Foreign shares purchased in United States .8 2.1 .3 1.5 4.0 1.1 3.0 5.7 2.2 -.7 2.9 3.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates. 1982r 1983' 1984r Transaction category, or sector 198^ 1981' 1982r H2 HI H2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 340.0 398.3 538.9 755.6 508.8 569.0 704.0 By public agencies and foreign 2 Total net advances 75.2 97.1 97.7 114.1 117.5 142.2 127.1 120.2 114.7 123.2 3 U.S. government securities -6.3 15.8 17.1 22.7 27.6 36.0 35.7 40.7 14.4 29.5 4 Residential mortgages 35.8 31.7 23.5 61.0 76.1 56.5 74.5 80.2 72.1 52.8 5 FHLB advances to savings and loans 9.2 7.1 16.2 .8 -7.0 15.7 -9.5 -12.1 -2.0 15.9 6 Other loans and securities 36.5 42.5 40.9 29.5 20.8 34.1 26.5 11.5 30.2 25.1 Total advanced, by sector 7 U.S. government 19.0 23.7 24.0 15.9 9.7 17.2 17.1 9.1 10.3 7.9 8 Sponsored credit agencies 53.1 45.6 48.2 65.5 69.8 73.3 69.1 68.6 71.0 73.6 9 Monetary authorities 7.7 4.5 9.2 9.8 10.9 8.4 15.7 15.6 6.2 11.9 10 Foreign -4.5 23.3 16.2 22.8 27.1 43.4 25.3 27.0 27.2 29.9 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools . 47.9 44.8 47.4 64.9 67.8 74.9 69.7 66.2 69.4 69.6 12 Foreign 20.2 27.2 27.2 15.7 18.9 1.7 21.2 15.3 22.5 22.9 Private domestic funds advanced 13 Total net advances 381.6 314.9 348.5 364.8 508.1 690.0 405.9 470.0 546.1 673.3 14 U.S. government securities 91.0 107.1 115.9 203.1 226.9 237.8 252.6 247.6 206.1 213.0 15 State and local obligations 30.3 30.3 23.4 48.6 57.3 65.8 54.6 57.3 57.3 38.9 16 Corporate and foreign bonds 18.5 19.3 18.8 14.8 14.9 29.9 29.6 21.4 8.5 17.7 17 Residential mortgages 94.2 69.1 52.9 -5.5 48.9 96.6 -18.7 22.2 75.5 107.9 18 Other mortgages and loans 156.7 96.3 153.8 104.6 153.0 275.6 78.2 109.4 196.7 311.7 19 LESS: Federal Home Loan Bank advances 9.2 7.1 16.2 -7.0 15.7 -9.5 -12.1 -2.0 15.9 Private financial intermediation 20 Credit market funds advanced by private financial institutions 316.4 281.3 317.2 287.6 382.7 553.2 300.7 334.6 430.7 548.1 21 Commercial banking 123.1 100.6 102.3 107.2 136.1 181.9 114.5 121.6 150.6 196.0 22 Savings institutions 56.5 54.5 27.4 31.4 140.5 143.0 37.6 132.7 148.4 161.5 23 Insurance and pension funds 85.6 94.5 97.6 107.4 94.2 123.1 103.8 83.0 105.3 111.8 24 Other finance 51.2 31.7 89.9 41.5 11.9 105.1 44.8 -2.7 26.5 78.8 25 Sources of funds 316.4 281.3 317.2 287.6 382.7 553.2 300.7 334.6 430.7 548.1 26 Private domestic deposits and RPs 137.4 169.6 211.9 174.4 205.2 287.7 201.7 194.1 216.3 277.1 27 Credit market borrowing 34.5 12.8 41.6 11.3 17.4 55.4 -12.2 .5 34.4 49.6 28 Other sources 144.5 63.7 101.8 160.0 210.1 111.2 140.0 180.0 221.3 2 3 9 0 T Fo re r a ei s g u n r y f u b n a d la s nces 27. . 6 4 -2 -2 1 . . 6 7 - - 8 1. . 1 7 -26 6 . . 7 1 - 2 5 2 . . 3 1 1 4 9 . . 0 0 -2 1 5 4 . . 1 1 -1 1 4 0 . . 2 1 -2 5 0 8 . . 8 5 27 1 . . 2 7 31 Insurance and pension reserves 72.9 83.7 90.7 103.2 95.1 111.7 95.3 83.5 106.8 118.0 32 Other, net 43.6 39.4 -17.2 19.3 48.1 75.4 26.9 60.6 35.6 74.6 Private domestic nonfinancial investors 33 Direct lending in credit markets 99.7 46.5 72.9 88.5 142.8 192.2 93.0 135.9 149.8 174.8 34 U.S. government securities 52.5 24.6 29.3 32.1 88.3 122.8 28.9 97.5 79.1 128.3 3 3 3 7 5 6 O C St o p a r e t p n e o a m r n a a d te r k l a o e n t c d a p l a f o o p b r e e l r i i g g a n t i b o o n n s ds -1 9 8 . . . 4 9 6 -1 -3 1 7 . . . 1 0 0 - 1 3 2 1 . . . 9 1 7 2 - 9 3 .6 . . 2 9 - 4 9 6 3 . . . 2 5 5 - 4 1 2 . .2 0 - 2 1 4 9 3 . . 7 . 7 8 -1 - 4 6 4 7 . . . 5 0 2 - 3 1 4 9 9 . . . 0 8 1 - 2 8 4 4 . . . 4 4 3 38 Other 30.1 29.1 33.7 24.0 13.7 28.2 25.4 11.8 15.6 26.2 39 Deposits and currency 146.8 181.1 221.9 181.6 224.4 292.2 211.5 215.9 232.8 288.5 40 Currency 8.0 10.3 9.5 9.7 14.3 8.6 12.7 14.8 13.8 15.9 41 Checkable deposits 18.3 5.2 18.0 15.4 23.0 21.4 29.3 49.1 -3.0 25.0 42 Small time and savings accounts 59.3 82.9 47.0 138.1 219.5 149.2 193.1 278.9 160.1 129.9 43 Money market fund shares 34.4 29.2 107.5 24.7 -44.1 47.2 10.0 -84.0 -4.2 30.2 4 4 4 5 L Se a c rg u e r it t y im R e P d s eposits 1 6 8 . . 6 8 45 6. . 5 8 3 2 6 . . 5 9 -7 3 . . 7 8 - 1 7 4 . . 5 3 - 7 5 5 . . 8 7 -37 6 . . 3 6 -6111.0.0 4 1 5 7 . . 9 5 88 3 . .3 8 46 Deposits in foreign countries 1.5 1.1 .5 -2.5 4.8 -4.0 -2.9 7.0 2.7 -4.5 47 Total of credit market instruments, deposits and currency 227.6 270.1 484.5 351.8 48 Public holdings as percent of total 18.4 26.4 24.5 27.6 21.1 18.8 27.4 22.9 19.4 17.0 49 Private financial intermediation (in percent).... 82.9 89.3 91.0 78.8 75.3 80.2 74.1 71.2 78.9 81.4 50 Total foreign funds 23.1 1.6 7.6 -3.9 49.2 62.4 .1 12.8 85.7 57.0 MEMO: Corporate equities not included above 51 Total net issues -4.3 21.9 -3.0 35.3 67.8 -33.1 47.2 83.4 52.1 -40.8 5 5 2 3 O M t u h t e u r a l e q f u u i n t d ie s s hares -4. . 3 1 1 5 6 . .8 2 -9 6 . . 3 3 1 1 8 6 . . 4 9 3 3 2 5 . . 8 0 -7 3 0 7 . . 8 7 2 2 4 2 . . 3 9 4 3 6 6 . . 7 8 2 23 8 . . 2 9 -8 3 0 9 . . 4 6 54 Acquisitions by financial institutions 12.9 24.9 20.9 37.1 56.4 11.1 63.9 76.2 36.5 2.6 55 Other net purchases -17.1 -3.0 -23.9 -1.8 11.4 -44.3 -16.7 7.2 15.6 -43.4 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line I 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/Iine 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

A44 Domestic Nonfinancial Statistics • December 1985 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1985 MMeeaassuurree 11998822 11998833 11998844 Jan. Feb. Mar. Apr. May June July' Aug.' Sept. 1 Industrial production 103.1 109.2 121.8 123.6 123.7 124.0 124.1 124.1 i24.y 124.1 124.8 124.7 Market groupings 2 Products, total 107.8 113.9 127.1 129.6 129.8 130.3 130.8 131.4 131.fr 131.5 132.6 132.4 3 Final, total 109.5 114.7 127.8 130.4 130.4 130.8 131.3 131.7 131.fr 131.7 132.8 132.6 4 Consumer goods 101.4 109.3 118.2 118.8 119.1 119.8 119.5 120.0 120.4' 120.0 120.9 120.6 5 Equipment 120.2 121.7 140.5 145.7 145.3 145.4 146.9 147.1 146.fr 147.2 148.6 148.6 6 Intermediate 101.7 111.2 124.9 126.8 127.7 128.6 129.3 130.3 131.4' 130.8 131.7 131.7 7 Materials 96.7 102.8 114.6 115.4 115.4 115.5 115.0 114.2 114.3' 113.9 114.2 114.2 Industry groupings 8 Manufacturing 102.2 110.2 123.9 125.9 125.8 126.3 126.6 126.6 126.7 126.9 127.7 127.5 Capacity utilization (percent)2 9 Manufacturing 70.3 74.0 80.8 80.7 80.4 80.5 80.5 80.3 80.1' 80.0 80.3 80.0 10 Industrial materials industries 71.7 75.3 82.3 81.7 81.5 81.4 80.9 80.1 80.1' 79.6 79.6 79.5 11 Construction contracts (1977 = 100)3 111.0 137.0 149.0 150.0 145.0 162.0 161.0 162.0 142.0 164.0 163.0 166.0 12 Nonagricultural employment, total4 136.1 137.1 143.6 146.5 146.8 147.3 147.6 148.0 148.1 148.5 148.9 149.1 13 Goods-producing, total 102.2 100.1 106.1 107.7 107.5 107.5 107.6 107.5 107.3 107.2 107.4 107.0 14 Manufacturing, total 96.6 94.8 99.8 100.8 100.6 100.4 100.1 99.9 99.7 99.5 99.6 99.1 15 Manufacturing, production-worker ... 89.1 87.9 94.0 93.6 93.3 93.0 92.6 92.3 92.0 91.8 92.0 91.5 16 Service-producing 154.7 157.3 164.1 167.8 168.3 169.1 169.5 170.3 170.5 171.1 171.7 172.2 17 Personal income, total 410.3 435.6 478.1 496.7 499.4 501.0 505.5' 502.2 504.1 506.2 507.8 509.4 18 Wages and salary disbursements 367.4 388.6 422.5 438.5 440.5 443.7 445.7 446.8 449.8 450.4 452.9 456.4 19 Manufacturing 285.5 294.7 323.6 334.4 332.9 334.8 333.5 333.9 334.7 334.6 336.2 336.5 20 Disposable personal income5 398.0 427.1 470.3 487.6 484.7 481.3 4%. 3' 504.5 492.1 494.1 495.2 495.9 21 Retail sales (1977 = 100)6 148.1 162.0 179.0 184.2 186.1 185.7 191.5 190.7 188.8 189.9 194.3 199.6 Prices7 22 Consumer 289.1 298.4 311.1 316.1 317.4 318.8 320.1 321.3 322.3 322.8 323.5 324.5 23 Producer finished goods 280.7 285.2 291.1' 292.1 292.6 292.1' 293.1 294.1' 293.9 294.8 293.5 290.2 1. A major revision of the industrial production index and the capacity 5. Based on data in Survey of Current Business (U.S. Department of Comutilization rates was released in July 1985. See "A Revision of the Index of merce). Industrial Production" and accompanying tables that contain revised indexes 6. Based on Bureau of Census data published in Survey of Current Business. (1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 7. Data without seasonal adjustment, as published in Monthly Labor Review. (July 1985), pp. 487-501. The revised indexes for January through June 1985 were Seasonally adjusted data for changes in the price indexes may be obtained from shown in the September BULLETIN. the Bureau of Labor Statistics, U.S. Department of Labor. 2. Ratios of indexes of production to indexes of capacity. Based on data from Federal Reserve, McGraw-Hill Economics Department, Department of Com- NOTE. Basic data (not index numbers) for series mentioned in notes 4,5, and 6, merce, and other sources. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 3. Index of dollar value of total construction contracts, including residential, of Current Business. nonresidential and heavy engineering, from McGraw-Hill Information Systems Figures for industrial production for the last two months are preliminary and Company, F. W. Dodge Division. estimated, respectively. 4. Based on data in Employment and Earnings (U.S. Department of Labor). Series covers employees only, excluding personnel in the Armed Forces. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1985 CCaatteeggoorryy 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug. Sept. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 174,450 176,414 178,602 179,742 179,891 180,024 180,171 180,322 180,492 180,657 180,831 2 Labor force (including Armed Forces)1 112,383 113,749 115,763 117,310 117,738 117,596 117,600 117,009 117,543 117,551 118,077 3 Civilian labor force 110,204 111,550 113,544 115,084 115,514 115,371 115,373 114,783 115,314 115,299 115,818 4 Nonagricultural industries2 96,125 97,450 101,685 103,345 103,757 103,517 103,648 103,232 103,737 104,080 104,568 5 Agriculture 3,401 3,383 3,321 3,340 3,362 3,428 3,312 3,138 3,126 3,092 2,976 6 Number 10,678 10,717 8,539 8,399 8,3% 8,426 8,413 8,413 8,451 8,127 8,274 7 Rate (percent of civilian labor force) ... 9.7 9.6 7.5 7.3 7.3 7.3 7.3 7.3 7.3 7.0 7.1 8 Not in labor force 62,067 62,665 62,839 62,432 62,153 62,428 62,571 63,313 62,949 63,106 62,754 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 89,566 90,196 94,461 96,591 96,910 97,120 97,421 97,473 97,707' 97,987' 98,115 10 Manufacturing 18,781 18,434 19,412 19,561 19,526 19,467 19,426 19,398 19,351' 19,377' 19,266 11 Mining 1,128 952 974 976 977 982 982 974 969' 964' 958 12 Contract construction 3,905 3,948 4,345 4,525 4,553 4,641 4,658 4,638 4,660' 4,685' 4,725 13 Transportation and public utilities 5,082 4,954 5,171 5,272 5,269 5,278 5,301 5,295 5,302' 5,284' 5,323 14 Trade 20,457 20,881 22,134 22,857 22,963 23,013 23,140 23,193 23,226' 23,302' 23,349 15 Finance 5,341 5,468 5,682 5,809 5,835 5,858 5,888 5,906 5,932' 5,960' 5,984 16 Service 19,036 19,694 20,761 5,269 5,274 5,278 5,270 5,276 5,284 5,314 5,338 17 Government 15,837 15,870 15,987 16,111 16,143 16,158 16,213 16,213 16,341' 16,347' 16,357 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 1984 ment of Labor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • December 1985 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1984 1985 1984 1985 1984 1985 Q4 Q1 Q2' Q3 Q4 Qi Q2 Q3 Q4 Qi Q2r Q3 Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 123.1 123.8 124.2 124.5 151.7 152.8 154.0 155.1 81.2 81.0 80.7 80.3 2 Mining 108.3 110.1 110.0 107.9 133.1 133.4 133.6 133.9 81.3 82.6 82.3 80.6 3 Utilities 111.1 114.2 113.6 112.6 133.0 133.7 134.5 135.4 83.5 85.5 84.4 83.1 4 Manufacturing 125.8 126.0 126.6 127.4 155.2 156.5 157.7 158.9 81.0 80.5 80.3 80.1 5 Primary processing ... 107.0 107.5 108.1 109.4 131.4 131.6 132.0 132.4 81.5 81.6 81.9 82.6 6 Advanced processing . 137.0 137.1 137.9 138.1 169.6 171.4 173.2 174.9 80.8 80.0 79.6 79.0 7 Materials 114.5 115.4 114.5 114.1 140.7 141.6 142.5 143.4 81.4 81.5 80.4 79.6 8 Durable goods 123.7 123.6 121.4 120.5 154.4 155.9 157.4 158.9 80.1 79.3 77.1 75.8 9 Metal materials 80.4 80.6 80.2 78.7 117.8 117.3 117.3 117.3 68.2 68.7 68.4 67.1 10 Nondurable goods 110.9 110.9 111.2 113.0 136.8 137.3 137.8 138.2 81.0 80.7 80.7 81.7 11 Textile, paper, and chemical.. 110.7 111.6 111.0 113.6 136.2 136.7 137.0 137.4 81.3 81.7 81.0 82.6 12 Paper 126.2 126.3 121.8 n.a. 135.3 136.1 136.2 n.a. 93.3 92.8 89.4 n.a. 13 Chemical 110.9 113.2 112.6 n.a. 141.1 141.5 142.0 n.a. 78.6 80.0 79.3 n.a. 14 Energy materials 101.3 105.0 105.2 103.8 119.7 120.0 120.3 120.6 84.6 87.5 87.5 86.0 Previous cycle1 Latest cycle2 1984 1985 High Low High Low Sept. Jan. Feb. Mar. Apr. May Juner July Aug/ Sept. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 81.7 81.1 80.9 81.0 80.8 80.6 80.5 80.2 80.5 80.2 16 Mining 92.8 87.8 95.2 76.9 88.0 82.9 82.1 82.8 82.1 82.2 82.7 81.3 80.6 80.0 17 Utilities 95.6 82.9 88.5 78.0 88.1 84.7 86.7 85.0 84.6 84.5 84.1 82.9 82.9 83.6 18 Manufacturing 87.7 69.9 86.5 68.0 81.3 80.7 80.4 80.5 80.5 80.3 80.1 80.0 80.3 80.0 19 Primary processing ... 91.9 68.3 89.1 65.1 82.0 81.6 81.5 81.8 82.1 81.5 82.0 82.2 82.8 82.8 20 Advanced processing . 86.0 71.1 85.1 69.5 80.9 80.2 79.8 79.8 79.7 79.8 79.3 79.1 79.2 78.7 21 Materials 92.0 70.5 89.1 68.4 82.7 81.7 81.5 81.4 80.9 80.1 80.1 79.6 79.6 79.5 22 Durable goods 91.8 64.4 89.8 60.9 80.8 79.9 79.1 78.9 78.3 76.6 76.5 75.8 76.2 75.5 23 Metal materials 99.2 67.1 93.6 45.7 69.0 68.1 68.2 69.8 69.9 66.2 69.0 66.4 67.7 67.2 24 Nondurable goods 91.1 66.7 88.1 70.6 81.6 80.9 81.1 80.2 80.2 80.8 81.0 81.7 81.6 81.9 25 Textile, paper, and chemical 92.8 64.8 89.4 68.6 82.7 81.7 82.0 81.4 80.7 80.9 81.4 82.7 82.4 82.9 26 Paper 98.4 70.6 97.3 79.9 95.1 93.7 92.6 92.1 89.1 88.8 90.5 92.4 90.6 n.a. 27 Chemical 92.5 64.4 87.9 63.3 79.1 80.1 80.2 79.5 79.2 79.5 79.2 80.1 80.3 n.a. 28 Energy materials 94.6 86.9 94.0 82.2 88.3 86.6 87.4 88.4 87.6 87.5 87.3 86.2 85.6 86.2 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 A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value A Monthly data are seasonally adjusted 1977 1984 1985 Grouping p p o ro r- - a 11 v 9988 g 44 . tion Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June' July Aug." Sept.' Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 121.8 123.3 122.7 123.4 123.3 123.6 123.7 124.0 124.1 124.1 124.3 124.1 124.8 124.7 2 Products 57.72 127.1 128.8 129.0 129.9 129.8 129.6 129.8 130.3 130.8 131.4 131.6 131.5 132.6 132.4 4 5 3 Fin C E a q o l u n p i s p r u o m m d e e u n r c t t g s oods 4 2 1 5 4 9 . . . 5 7 2 2 7 5 1 1 1 1 4 2 8 0 7 . . . 2 5 8 1 1 1 1 4 2 8 5 9 . . . 3 0 8 1 1 1 4 1 2 5 8 9 . . . 0 5 9 1 1 1 4 1 3 5 9 0 . . . 5 6 7 1 1 1 4 1 3 4 9 0 . . . 9 7 6 1 1 1 4 1 3 5 8 0 . . . 7 8 4 1 1 1 1 4 3 9 5 0 . . . 1 3 4 1 1 1 4 1 3 5 9 0 . . . 4 8 8 1 1 1 1 4 3 9 6 1 . . . 5 9 3 1 1 1 4 3 2 7 1 0 . . . 1 7 0 1 1 1 2 4 3 0 6 1 . . . 4 6 6 1 1 1 4 2 3 7 0 1 . . . 2 7 0 1 1 1 4 2 3 8 0 2 . . . 6 9 8 1 1 1 4 2 3 8 0 2 . . . 6 6 6 6 Intermediate products 12.94 124.9 125.6 126.2 127.2 127.3 126.8 127.7 128.6 129.3 130.3 131.4 130.8 131.7 131.7 7 Materials 42.28 114.6 115.9 114.2 114.6 114.6 115.4 115.4 115.5 115.0 114.2 114.3 113.9 114.2 114.2 8 C D o u n r s a u b m le e r c on g s o u o m ds e r goods 6.89 112.6 111.5 111.4 113.3 113.1 112.8 112.8 113.5 111.5 111.8 112.0 111.1 113.7 112.3 9 Automotive products 2.98 109.8 107.4 104.2 110.2 111.6 114.2 115.4 115.1 113.1 113.6 113.4 115.0 120.1 117.6 10 Autos and trucks 1.79 103.0 98.7 95.0 103.1 104.7 112.5 111.7 110.5 109.0 109.6 109.4 113.7 120.2 116.0 1 1 2 1 T A r u u t c o k s, s , c c o o n n s s u u m m e e r r 1 . . 6 1 3 6 1 9 2 3 1 . . 2 2 1 8 2 5 4 . . 1 1 1 8 1 4 5 . . 0 4 1 8 2 9 7 . . 7 8 1 9 2 5 1 . . 6 5 1 1 0 3 2 1 . . 5 1 1 1 0 3 0 2 . . 7 0 1 12 0 7 1 . . 5 3 1 12 0 4 0 . . 7 5 1 9 3 8 0 . . 1 9 1 9 3 7 2 . . 0 3 1 10 3 1 7 . . 1 2 1 1 5 0 5 1 . . 4 3 98.8 13 Auto parts and allied goods 1.19 120.1 120.6 118.1 121.1 122.1 116.8 121.1 122.0 119.4 119.6 119.4 116.8 119.8 112200..11 14 Home goods 3.91 114.8 114.7 116.9 115.8 114.3 111.6 110.9 112.2 110.2 110.4 110.9 108.2 108.9 108.3 15 Appliances, A/C and TV 1.24 136.2 138.0 140.5 137.4 137.2 126.1 127.1 131.8 126.9 129.3 131.5 121.6 124.9 123.9 16 Appliances and TV 1.19 137.5 140.1 142.2 138.4 138.2 126.6 127.2 131.8 127.1 128.7 131.7 123.2 125.6 17 Carpeting and furniture .96 117.6 118.8 118.1 118.1 114.1 112.7 117.9 117.7 118.1 116.9 119.6 122.2 118.5 18 Miscellaneous home goods 1.71 97.8 95.6 99.3 99.0 97.9 100.6 95.1 95.0 93.7 93.1 91.2 90.7 91.9 19 Nondurable consumer goods 18.63 120.2 120.7 121.0 121.8 122.1 121.1 121.4 122.1 122.5 123.1 123.5 123.3 123.6 123.6 20 Consumer staples 15.29 125.0 126.3 126.7 127.4 127.7 126.6 126.9 127.9 128.5 129.0 129.6 129.2 129.5 129.6 21 Consumer foods and tobacco 7.80 126.2 127.7 128.2 127.6 129.1 127.1 127.8 128.0 129.4 128.9 130.5 130.2 130.6 22 Nonfood staples 7.49 123.9 125.0 125.4 127.5 126.5 126.0 126.0 127.7 127.6 129.1 128.7 128.1 128.4 112288..33 23 Consumer chemical products ... 2.75 137.4 140.4 141.3 143.3 142.7 142.9 143.2 145.1 145.1 147.3 145.4 144.4 144.6 24 Consumer paper products 1.88 138.4 140.7 140.0 141.5 141.8 141.2 138.1 141.7 142.0 143.7 144.6 144.9 145.0 25 Consumer energy 2.86 101.4 110000..00 100.5 103.0 100.7 99.9 101.5 101.9 101.5 102.1 102.2 101.5 102.1 26 Consumer fuel 1.44 89.3 8888..11 88.8 89.9 87.7 85.1 84.9 87.0 90.0 90.2 88.8 89.2 90.0 27 Residential utilities 1.42 113.7 112.1 112.4 116.3 113.9 115.0 118.4 117.1 113.2 114.4 115.9 114.0 Equipment 28 Business and defense equipment 18.01 139.6 144.1 144.1 144.6 143.9 145.5 145.6 146.1 147.7 147.9 147.4 147.8 149.2 149.3 29 Business equipment 14.34 134.9 139.2 139.1 139.8 138.4 140.4 140.0 140.2 142.0 141.9 140.7 141.2 142.6 142.2 30 Construction, mining, and farm ... 2.08 66.6 67.9 69.5 68.2 68.5 68.8 68.3 67.1 68.4 67.4 67.7 68.6 67.9 31 Manufacturing 3.27 109.4 113.3 112.7 112.4 111.5 111.6 112.3 112.0 112.4 113.1 111.9 113.5 113.5 111122..88 32 Power 1.27 79.2 82.4 83.7 83.8 84.5 82.5 81.8 79.6 81.8 82.8 84.1 85.0 83.9 83.4 33 Commercial 5.22 209.2 216.9 216.4 217.1 214.5 217.4 217.0 218.9 221.8 222.8 219.6 219.5 222.8 221.4 34 Transit 2.49 98.6 99.3 98.5 102.9 100.9 106.7 104.9 104.5 106.0 102.9 103.4 102.9 105.3 107.7 35 Defense and space equipment 3.67 157.9 163.4 163.5 163.3 165.3 165.3 167.3 169.0 170.1 171.2 173.4 173.6 175.2 176.9 Intermediate products 36 Construction supplies 5.95 114.0 114.7 114.6 115.7 114.7 116.2 115.7 116.9 117.4 118.1 119.2 119.6 121.2 121.4 37 Business supplies 6.99 134.2 134.9 136.1 137.1 138.0 135.9 137.9 138.6 139.4 140.7 141.7 140.4 140.7 38 General business supplies 5.67 137.9 138.7 140.1 140.9 141.4 140.2 141.1 141.9 143.4 144.4 146.1 144.6 144.4 39 Commercial energy products 1.31 118.0 118.2 118.8 120.4 122.9 117.1 124.1 124.5 122.4 124.6 122.7 122.1 Materials 40 Durable goods materials 20.50 122.3 112244..00 123.7 123.9 123.4 124.2 123.3 123.3 122.8 120.7 120.8 120.1 121.1 120.4 41 Durable consumer parts 4.92 98.0 9988..88 98.9 99.1 99.8 102.6 102.2 102.1 101.8 100.1 98.7 98.3 99.2 98.7 42 Equipment parts 5.94 164.5 169.9 168.6 169.1 168.8 166.7 164.2 163.3 161.1 157.8 157.3 157.0 158.1 156.9 43 Durable materials n.e.c 9.64 108.6 108.5 108.7 108.7 107.4 109.1 109.0 109.6 110.0 108.2 109.6 108.4 109.4 109.0 44 Basic metal materials 4.64 86.4 85.0 84.8 85.2 84.0 83.5 84.1 85.1 86.6 82.0 85.0 82.5 83.0 45 Nondurable goods materials 10.09 111.2 111.4 111.2 110.7 110.7 110.9 111.4 110.3 110.4 111.3 111.8 112.8 112.8 113.4 46 Textile, paper, and chemical materials 7.53 111.6 112.3 111.5 110.5 110.1 111.5 112.1 111.3 110.5 110.9 111.7 113.5 113.2 114.0 47 Textile materials 1.52 101.5 99.2 98.5 93.7 91.2 90.3 93.5 93.0 94.1 95.0 97.3 99.2 99.3 4 4 5 9 8 0 Mi C P s u c h l e e p l m la a i n n c e d al o p u m a s p a n t e e o r r n i m a d l u a s t r e a r b i l a e l s m aterials . 4 2 1 . . . 4 5 5 6 7 5 1 1 1 0 2 0 9 6 9 . . . 8 5 9 1 1 1 0 2 1 8 7 1 . . . 4 7 5 1 1 1 0 1 2 9 0 6 . . . 9 8 2 1 1 1 1 2 1 5 1 1 . . . 1 1 1 1 1 1 1 1 2 2 0 7 . . . 1 6 2 1 1 1 0 1 2 9 3 7 . . . 2 3 5 1 1 1 0 1 2 9 3 6 . . . 4 5 0 1 1 1 0 1 2 7 2 5 . . . 2 7 4 1 1 1 1 2 1 0 1 2 . . . 1 3 3 1 1 1 1 1 2 2 2 0 . . . 5 9 9 1 1 1 1 2 1 2 3 2 . . . 0 3 6 1 1 1 1 2 1 0 6 4 . . . 8 0 0 1 1 1 1 2 1 1 3 4 . . . 5 5 4 51 Energy materials 11.69 104.0 105.5 99.9 101.5 102.4 103.9 104.9 106.2 105.3 105.3 105.1 103.9 103.3 104.1 52 Primary energy 7.57 107.5 110.0 101.4 104.1 106.0 107.0 107.6 110.2 107.9 107.8 109.0 107.0 106.2 53 Converted fuel materials 4.12 97.6 97.2 97.1 96.8 96.0 98.2 100.0 99.0 100.6 100.6 98.1 98.3 97.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • December 1985 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued 1977 1985 Grouping c S o I d C e p p r o o r - - a 1 v 98 g 4 . tion Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June' July Aug.p Sept.' Index (1977 = 100) MAJOR INDUSTRY 1 15.79 110.9 112.1 108.0 110.1 109.9 111.4 111.9 111.8 111.1 111.3 111.6 109.9 109.6 ? 9.83 110.9 113.6 107.2 108.8 108.9 110.5 109.5 110.5 109.6 109.8 110.6 108.7 108.0 3 Utilities 5.96 110.9 109.7 109.4 112.1 111.6 113.0 115.8 113.9 113.6 113.7 113.4 112.0 112.3 4 84.21 123.9 125.6 125.5 126.0 125.8 125.9 125.8 126.3 126.6 126.6 126.7 126.9 127.7 5 35.11 122.5 123.1 123.3 123.8 123.4 123.2 123.8 123.9 124.3 124.7 125.5 125.7 125.7 6 4499..1100 112244..88 112277..22 112277..00 112277..55 112277..44 127.8 127.2 128.0 128.2 127.9 127.6 127.7 129.1 Mining 7 Metal 10 .50 77.0 73.6 75.3 75.5 69.3 70.5 74.5 83.6 81.2 78.3 77.5 60.9 59.2 8 Coal 11.12 1.60 127.6 144.2 102.0 113.1 116.2 118.5 121.5 131.9 128.5 128.7 134.0 128.0 127.7 9 Oil and gas extraction 13 7.07 109.1 109.2 110.1 109.8 109.8 110.7 108.2 106.8 106.5 106.9 106.9 107.0 105.9 10 Stone and earth minerals 14 .66 116.1 117.6 114.2 115.3 113.2 118.5 119.8 118.7 118.5 118.7 117.9 116.5 119.0 Nondurable manufactures 11 Foods 20 7.96 127.1 128.2 129.1 128.7 129.0 128.2 129.4 128.5 130.8 131.4 131.8 132.1 132.3 12 Tobacco products 21 .62 100.7 99.6 103.1 102.7 107.4 97.2 103.8 103.4 98.4 95.7 98.9 98.8 96.4 13 Textile mill products 22 2.29 103.7 100.9 100.3 97.1 94.7 93.6 98.5 99.4 99.0 100.0 103.3 104.1 103.0 14 Apparel products 23 2.79 102.8 100.1 100.5 101.1 102.5 102.6 103.1 101.3 100.2 100.3 99.2 100.6 100.3 15 Paper and products 26 3.15 127.3 128.9 127.6 127.7 128.8 128.3 126.4 126.9 125.1 124.1 127.1 129.0 128.1 16 Printing and publishing 27 4.54 147.9 148.8 149.5 153.5 151.2 150.4 150.3 152.6 154.2 155.4 156.7 155.0 155.1 17 Chemicals and products 28 8.05 121.7 124.2 123.5 124.3 123.4 125.7 125.8 126.5 125.8 126.7 126.4 126.3 126.1 18 Petroleum products 29 2.40 87.4 85.7 85.4 86.2 84.7 84.1 84.0 84.7 87.3 87.4 87.1 88.3 88.5 19 Rubber and plastic products 30 2.80 143.2 144.1 146.0 146.6 146.6 145.9 145.7 144.1 144.9 144.3 145.5 145.7 147.7 20 Leather and products 31 .53 76.7 73.4 70.9 71.5 71.4 69.1 69.2 69.4 69.9 71.0 71.5 72.8 73.8 Durable manufactures 21 Lumber and products 24 2.30 109.1 110.4 110.2 109.5 109.4 109.2 109.1 109.5 110.9 112.2 113.5 113.0 22 Furniture and fixtures 25 1.27 136.7 140.9 139.9 139.8 138.0 136.5 139.0 139.2 141.0 142.0 141.9 145.1 143.2 23 Clay, glass, stone products 32 2.72 112.3 112.6 113.3 113.6 111.8 112.7 110.5 111.4 114.5 116.3 116.1 115.1 116.9 24 Primary metals 33 5.33 82.4 82.9 81.3 80.9 78.4 81.7 80.2 81.8 81.4 76.4 78.3 78.9 81.1 25 Iron and steel 331.2 3.49 73.5 73.6 71.0 71.1 68.9 71.0 68.5 73.2 71.9 65.4 67.6 68.4 71.0 26 Fabricated metal products 34 6.46 102.8 104.8 104.8 105.4 105.9 106.4 107.6 108.6 109.1 108.3 107.4 107.3 108.3 27 Nonelectrical machinery 35 9.54 142.0 146.5 146.6 145.8 144.6 145.0 144.9 146.5 148.9 149.1 145.6 147.0 148.6 28 Electrical machinery 36 7.15 172.4 176.8 178.4 178.9 180.2 176.0 173.2 173.1 168.9 169.3 169.5 165.7 166.0 29 Transportation equipment 37 9.13 113.6 114.3 113.4 116.0 117.8 120.4 120.5 120.8 120.7 120.9 121.8 123.7 126.5 30 Motor vehicles and parts 371 5.25 105.6 104.6 103.1 107.5 109.5 113.0 112.5 111.3 110.9 110.5 110.5 112.8 116.7 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 124.4 127.5 127.3 127.5 129.0 130.5 131.4 133.7 134.1 134.9 137.1 138.5 139.7 32 Instruments 38 2.66 136.9 140.2 138.6 138.6 138.9 138.7 138.7 139.0 138.5 139.9 140.7 141.1 141.3 33 Miscellaneous manufactures 39 1.46 98.0 95.9 98.6 98.6 97.2 99.0 96.4 96.0 98.3 98.3 96.8 95.4 96.0 Utilities 3344 44..1177 111166..88 111166..22 111166..88 111188..77 111177..55 111188..99 121.9 119.5 119.1 119.5 119.4 117.7 118.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 35 Products, total 596.0 745.6 749.2 753.7 759.2 756.5 761.3 764.2 769.5 773.3 774.4 773.4 768.4 775.9 36 Final 472.7 593.7 596.8 600.4 605.2 601.8 606.5 608.7 613.3 616.2 616.2 613.9 609.4 616.1 37 Consumer goods . 309.2 356.5 352.5 355.5 359.0 360.0 358.8 360.9 364.6 364.7 365.1 364.0 361.2 364.1 38 Equipment 163.5 237.6 244.8 245.4 246.7 242.3 247.6 247.8 248.7 251.4 251.1 249.9 248.1 252.0 39 Intermediate 123.3 151.8 152.3 153.2 154.0 154.6 154.9 155.5 156.3 157.1 158.2 159.5 159.0 159.8 A A major revision of the industrial production index and the capacity (July 1985), pp. 487-501. The revised indexes for January through June 1985 were utilization rates was released in July 1985. See "A Revision of the Index of shown in the September BULLETIN. Industrial Production" and accompanying tables that contain revised indexes NOTE. These data also appear in the Board's G.12.3 (414) release. For address, (1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1984 1985 IItteemm 11998822 11998833 11998844 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,000 1,605 1,682 1,616 1,599 1,635 1,624 1,741 1,704 1,778 1,712 1,694 1,784 2 1-family 546 902 922 846 843 903 927 993 948 933 961 967 990 3 2-or-more-family 454 703 759 770 756 732 697 748 756 845 751 727 794 4 Started 1,062 1,703 1,749 1,600 1,630 1,849 1,647 1,889 1,933 1,681 1,701 1,663' 1,746 5 1-family 663 1,067 1,084 1,043 1,112 1,060 1,135 1,168 1,155 1,039 1,031 1,062 1,074 6 2-or-more-family 400 635 665 557 518 789 512 721 778 642 670 601' 672 7 Under construction, end of period1 720 1,003 1,051 1,077 1,073 1,071 1,066 1,063 1,088 1,089 1,075' 1,073' 1,088 8 1-family 400 524 556 574 579 572 580 578 583 582 575 579' 588 9 2-or-more-family 320 479 494 503 495 499 485 485 505 507 50<y 494' 501 10 Completed 1,005 1,390 1,652 1,587 1,635 1,719 1,794 1,685 1,641 1,627 1,789' l,72<y 1,709 11 1-family 631 924 1,025 1,001 985 1,107 1,082 1,043 1,074 1,020 1,097' 1,037' 998 12 2-or-more-family 374 466 627 586 650 612 712 642 567 607 692' 683' 711 13 Mobile homes shipped 240 296 295 291 282 273 276 283 287 287 270 286 290 Merchant builder activity in 1-family units 14 Number sold 413 622 639 596 604 634 676 699 649 682 708 747 705 15 Number for sale, end of period1 255 304 358 349 356 356 360 357 356 356 354 353 350 PPrriiccee ((tthhoouussaannddss ooff ddoollllaarrss))22 MMeeddiiaann 1166 UUnniittss ssoolldd 69.3 75.5 80.0 82.5 78.3 82.5 82.0 84.2 85.6 80.1 85.7 81.7 82.4 AAvveerraaggee 1177 UUnniittss ssoolldd 83.8 89.9 97.5 101.4 96.3 98.3 96.2 100.9 104.7 98.1 99.0 99.5 98.3 EXISTING UNITS (1-family) 18 Number sold 1,991 2,719 2,868 2,830 2,870 3,000 2,880 3,030 3,040 3,040 3,060 3,140 3,500 Price of units sold (thousands of dollars)2 19 Median 67.7 69.8 72.3 71.9 72.1 73.8 73.5 74.2 74.5 75.0 76.2 77.4 76.9 20 Average 80.4 82.5 85.9 85.1 85.9 87.7 87.2 88.6 89.7 90.1 91.5 93.5 93.0 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 236,935 268,730 312,989 313,076 310,062 341,038 334,254 333,723 341,861 339,943 343,837 340,243 343,951 72 Private 186,091 218,016 257,802 257,469 254,547 283,688 276,452 274,575 281,988 276,420 278,939 275,561 279,543 7.3 Residential 80,609 121,309 145,058 137,880 134,296 155,260 146,042 146,195 146,539 142,254 147,158 144,542 147,209 24 Nonresidential, total 105,482 96,707 112,744 119,589 120,251 128,428 130,410 128,380 135,449 134,166 131,781 131,019 132,334 Buildings 25 Industrial 17,346 12,863 13,746 14,645 14,440 15,195 15,815 14,585 17,283 16,443 15,170 15,413 1155,,441144 26 Commercial 37,281 35,787 48,102 52,541 54,528 58,524 58,922 59,382 61,219 60,064 58,290 58,097 59,467 27 Other 10,507 11,660 12,298 11,771 12,150 11,889 12,054 11,245 12,663 12,929 12,786 12,625 12,829 28 Public utilities and other 40,348 36,397 38,598 40,632 39,133 42,820 43,619 43,168 44,284 44,730 45,535 44,884 44,624 29 Public 50,843 50,715 55,186 55,608 55,514 57,350 57,802 59,148 59,873 63,523 64,897 64,682 64,408 30 Military 2,205 2,544 2,839 3,107 2,952 2,969 3,036 3,078 3,166 3,349 3,426 3,197 3,028 31 Highway 13,293 14,143 16,295 16,939 16,888 17,759 18,416 19,176 19,920 22,314 21,093 19,685 20,344 32 Conservation and development 5,029 4,822 4,656 5,127 4,654 4,645 4,674 4,727 4,393 5,051 5,410 5,135 4,757 33 Other 30,316 29,206 31,396 30,435 31,020 31,977 31,676 32,167 32,394 32,809 34,968 36,665 36,279 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

A50 Domestic Nonfinancial Statistics • December 1985 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier months earlier (at annual rate) Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm SSSeeepppttt... 1984 1985 1985 111999888555 11998844 11998855 (((111999666777 SSeepptt.. SSeepptt.. === 111000000)))''' Dec. Mar. June Sept. May June July Aug. Sept. CONSUMER PRICES2 1 All items 4.2 3.2 3.0 4.1 3.3 2.3 .2 .2 .2 .2 .2 324.5 2 Food 4.0 1.9 3.7 2.6 -.9 1.8 -.1 .1 .1 .0 .3 309.9 3 Energy items -.1 .8 -.7 -.8 9.6 -4.3 .3 .2 -.3 -.6 -.2 432.6 4 All items less food and energy 5.1 3.9 3.5 5.5 3.4 3.5 .3 .3 .3 .3 .2 316.9 5 Commodities 4.0 1.6 .9 6.6 -1.4 .8 -.2 -.2 -.2 .1 .3 260.2 6 Services 5.7 5.3 5.0 5.0 6.4 5.0 .7 .5 .5 .5 .2 380.2 PRODUCER PRICES 7 Finished goods 1.5 .2 1.1 .5 1.5 -2.3 .2 -.2 .3 -.3 -.6 290.2 8 Consumer foods 3.8 -2.4 3.3 -3.0 -8.2 -1.5 -1.1 -.1 1.3 -.7 -.9 266.5 9 Consumer energy -8.0 -1.8 5.6 -21.3 25.9 -11.8 3.(y -3.1' -1.4 -1.6 -.1 718.9 10 Other consumer goods 2.6 1.8 -.2 6.5 1.3 .0 .2 .2 .4 .0 -.5 249.5 11 Capital equipment 2.6 1.3 -1.1 6.2 1.9 -1.5 .2' .2' .0 .2 -.6 2% .4 12 Intermediate materials3 1.9 -.3 1.2 -2.5 1.1 -1.2 .4 -.4 -.3 -.1 .1 324.6 13 Excluding energy 2.7 .1 1.5 -1.0 1.2 -1.2 .2 .2 -.1 -.1 -.1 304.9 Crude materials 14 Foods -1.7 -14.6 10.6 -24.9 -19.9 -20.5 -2.5' .<y -1.1 -3.8 -.7 215.9 15 Energy .1 -5.5 -7.6 -13.1 2.9 -3.3 1.5' -1.2' -.3 -.9 .4 745.4 16 Other 1.1 -6.5 -10.7 -13.3 3.4 -4.5 -1.4 .3' .7 -1.2 -.6 246.9 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 A51 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1984 1985 AAccccoouunntt 11998822 11998833 11998844 Q3 Q4 Q1 Q2 Q3 GROSS NATIONAL PRODUCT 1 3,069.3 3,304.8 3,662.8 3,694.6 3,758.7 3,810.6 3,853.1 3,916.1 By source 2 Personal consumption expenditures 1,984.9 2,155.9 2,341.8 2,361.4 22,,339966..55 2,446.5 22,,449933..00 22,,553366..55 3 245.1 279.8 318.8 317.2 326.3 334.8 339.2 355.6 4 Nondurable goods 757.5 801.7 856.9 861.4 866.5 877.3 891.9 895.6 5 Services 982.2 1,074.4 1,166.1 1,182.8 1,203.8 1,234.4 1,261.9 1,285.3 6 Gross private domestic investment 414.9 471.6 637.8 662.8 637.8 646.8 643.2 622.8 7 Fixed investment 441.0 485.1 579.6 591.0 601.1 606.1 625.3 630.9 8 Nonresidential 349.6 352.9 425.7 435.7 447.7 450.9 467.3 467.5 9 Structures 142.1 129.7 150.4 151.4 157.9 162.9 168.3 166.8 10 Producers' durable equipment 207.5 223.2 275.3 284.2 289.7 288.0 299.0 300.6 11 Residential structures 91.4 132.2 153.9 155.3 153.5 155.2 158.0 163.4 12 Nonfarm 86.6 127.6 148.8 150.1 148.3 150.0 152.4 157.5 13 Change in business inventories -26.1 -13.5 58.2 71.8 36.6 40.7 17.9 -8.1 14 Nonfarm -24.0 -3.1 49.6 63.7 27.2 34.1 11.4 -8.4 15 Net exports of goods and services 19.0 -8.3 -64.2 -90.6 -56.0 -74.5 -94.0 -89.2 16 Exports 348.4 336.2 364.3 368.6 367.2 360.7 347.7 347.6 17 Imports 329.4 344.4 428.5 459.3 423.2 435.2 441.6 436.7 18 Government purchases of goods and services 650.5 685.5 747.4 761.0 780.5 791.9 810.9 845.9 19 258.9 269.7 295.4 302.0 315.7 319.9 324.2 347.0 20 State and local 391.5 415.8 452.0 458.9 464.8 472.0 486.7 498.9 By major type of product 71 Final sales, total 3,095.4 3,318.3 3,604.6 33,,662222..88 33,,772222..11 33,,777700..00 33,,883355..22 33,,992244..22 ?? Goods 1,276.7 1,355.7 1,542.9 1,549.1 1,579.8 1,583.8 1,579.6 1,595.0 73 Durable 499.9 555.3 655.6 654.7 687.7 677.1 669.6 674.8 74 Nondurable 776.9 800.4 887.3 894.4 892.1 906.7 910.0 920.2 25 1,510.8 1,639.3 1,763.3 1,783.3 1,813.7 1,857.2 1,888.8 1,927.3 26 Structures 281.7 309.8 356.5 362.1 365.2 369.6 384.8 393.8 27 Change in business inventories -26.1 -13.5 58.2 71.8 36.6 40.7 17.9 -8.1 78 -18.0 -2.1 30.4 41.7 26.7 29.0 3.7 -12.8 29 Nondurable goods -8.1 -11.3 27.8 30.1 9.9 11.7 14.2 4.8 30 MEMO: Total GNP in 1972 dollars 1,480.0 1,534.7 1,639.3 1,645.2 1,662.4 1,663.5 1,671.3 1,684.8 NATIONAL INCOME 31 2,446.8 2,646.7 2,959.9 2,984.9 3,036.3 3,076.5 3,106.5 n.a. 32 Compensation of employees 1,864.2 1,984.9 2,173.2 2,191.9 2,228.1 2,272.7 2,305.9 2,337.2 33 Wages and salaries 1,568.7 1,658.8 1,804.1 1,819.1 1,848.2 1,882.8 1,909.5 1,935.2 34 Government and government enterprises 306.6 328.2 349.8 352.0 357.2 365.5 370.7 376.3 35 Other 1,262.2 1,331.1 1,454.2 1,467.1 1,490.9 1,517.3 1,538.9 1,558.9 36 Supplement to wages and salaries 295.5 326.2 369.0 372.8 380.0 389.8 396.3 402.1 37 Employer contributions for social insurance 140.0 153.1 173.5 174.7 177.5 183.6 186.1 188.3 38 Other labor income 155.5 173.1 195.5 198.1 202.5 206.3 210.2 213.7 39 Proprietors' income1 111.1 121.7 154.4 153.7 159.1 159.8 160.7 154.4 40 Business and professional1 89.2 107.9 126.2 126.4 129.7 134.0 137.3 141.9 41 Farm1 21.8 13.8 28.2 27.3 29.4 25.7 23.4 12.5 42 Rental income of persons2 51.5 58.3 62.5 63.0 64.1 64.8 66.7 67.7 43 Corporate profits1 159.1 225.2 285.7 282.8 291.6 292.3 298.5 n.a. 44 Profits before tax3 165.5 203.2 235.7 224.8 228.7 222.3 221.0 n.a. 45 Inventory valuation adjustment -9.5 -11.2 -5.7 -.2 -1.6 .9 2.5 6.0 46 Capital consumption adjustment 3.1 33.2 55.7 58.3 64.5 69.1 75.0 82.3 47 Net interest 260.9 256.6 284.1 293.5 293.4 287.0 274.7 267.8 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

A52 Domestic Nonfinancial Statistics • December 1985 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1984 1985 Account 11998822 11998833 1984 Q3 Q4 QI Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 2,584.6 2,744.2 3,012.1 3,047.3 3,096.2 3,143.8 3,174.7 3,199.1 2 Wage and salary disbursements 1,568.7 1,659.2 1,804.0 1,819.5 1,847.6 1,882.7 1,910.6 1,935.2 3 Commodity-producing industries 509.3 519.3 569.3 573.3 580.9 590.9 594.2 597.4 4 Manufacturing 382.9 395.2 433.9 436.4 442.4 447.9 447.9 450.2 5 Distributive industries 378.6 398.6 432.0 436.4 443.1 449.0 455.7 460.6 6 Service industries 374.3 413.1 452.9 457.3 466.9 477.4 489.0 500.9 7 Government and government enterprises. 306.6 328.2 349.8 352.4 356.7 365.4 371.7 376.3 8 Other labor income 155.5 173.1 195.5 198.1 202.5 206.3 210.2 213.7 9 Proprietors' income1 111.1 121.7 154.4 153.7 159.1 159.8 160.7 154.4 10 Business and professional1 89.2 107.9 126.2 126.4 129.7 134.0 137.3 141.9 11 Farm1 21.8 13.8 28.2 27.3 29.4 25.7 23.4 12.5 12 Rental income of persons2 51.5 58.3 62.5 63.0 64.1 64.8 66.7 67.7 13 Dividends 66.5 70.3 77.7 78.5 80.2 81.4 82.5 83.2 14 Personal interest income 366.6 376.3 433.7 449.3 456.1 456.0 453.0 450.0 15 Transfer payments 376.1 405.0 416.7 418.6 421.8 439.2 439.5 445.2 16 Old-age survivors, disability, and health insurance benefits... 204.5 221.6 237.3 238.2 243.5 249.6 249.9 254.9 17 LESS: Personal contributions for social insurance 111.4 119.6 132.5 133.4 135.2 146.4 148.4 150.3 18 EQUALS: Personal income 2,584.6 2,744.2 3,012.1 3,047.3 3,096.2 3,143.8 3,174.7 3,199.1 19 LESS: Personal tax and nontax payments 404.1 404.2 435.3 440.9 451.7 489.0 448.2 486.6 20 EQUALS: Disposable personal income 2,180.5 2,340.1 2,576.8 2,606.4 2,644.5 2,654.8 2,726.5 2,712.6 21 LESS: Personal outlays 2,044.5 2,222.0 2,420.7 2,442.3 2,481.5 2,536.2 2,587.1 2,634.2 22 EQUALS: Personal saving 136.0 118.1 156.1 164.1 163.0 118.6 139.4 78.4 MEMO Per capita (1972 dollars) 23 Gross national product 6,369.7 6,543.4 6,926.1 6,943.2 6,998.3 6,989.0 7,007.9 7,047.3 24 Personal consumption expenditures 4,145.9 4,302.8 4,488.7 4,498.4 4,527.1 4,575.7 4,621.2 4,664.8 25 Disposable personal income 4,555.0 4,670.0 4,939.0 4,965.0 4,996.0 4,965.0 5,054.0 4,988.0 26 Saving rate (percent) 6.2 5.0 6.1 6.3 6.2 4.5 5.1 2.9 GROSS SAVING 27 Gross saving 408.8 437.2 551.8 556.4 556.0 550.7 532.6 n.a. 28 Gross private saving 524.0 571.7 674.8 689.4 698.2 662.1 696.3 n.a. 29 Personal saving 136.0 118.1 156.1 164.1 163.0 118.6 139.4 78.4 30 Undistributed corporate profits1 29.2 76.5 115.4 118.4 120.8 122.5 129.3 n.a. 31 Corporate inventory valuation adjustment -9.5 -11.2 -5.7 -.2 -1.6 .9 2.5 6.0 Capital consumption allowances 32 Corporate 221.8 231.2 246.2 248.1 252.8 257.4 261.6 266.7 33 Noncorporate 137.1 145.9 157.0 158.8 161.5 163.7 166.1 171.7 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 -122.9 -133.0 -142.2 -111.4 -163.8 n.a. 36 Federal -148.2 -178.6 -175.8 -180.6 -197.8 -165.1 -214.1 n.a. 37 State and local 32.9 44.1 52.9 47.6 55.6 53.7 50.3 n.a. 38 Capital grants received by the United States, net .0 .0 .0 .0 .0 .0 .0 .0 39 Gross investment 408.3 437.7 544.4 543.4 546.1 542.6 518.9 503.5 40 Gross private domestic 414.9 471.6 637.8 662.8 637.8 646.8 643.2 622.8 41 Net foreign -6.6 -33.9 -93.4 -119.4 -91.6 -104.2 -124.3 -119.3 42 Statistical discrepancy. -.5 .5 -7.4 -13.0 -9.9 -8.1 -13.7 -13.7 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1984 1985 IItteemm ccrreeddiittss oorr ddeebbiittss 11998822 11998833 11998844 Q2 Q3 Q4 Q1 Q2P 1 Balance on current account -8,051 -40,790 -101,532 --2244,,449933 --3322,,550000 --2255,,447777 --3300,,332255 -31,811 --2244,,665544 --3355,,772244 --2222,,775599 --2299,,441166 -32,066 3 Merchandise trade balance2 -36,444 -62,012 -108,281 -25,649 -32,507 -24,557 -29,532 -33,001 4 Merchandise exports 211,198 200,745 220,316 54,677 55,530 56,355 55,707 53,245 5 Merchandise imports -247,642 -262,757 -328,597 -80,326 -88,037 -80,912 -85,239 -86,246 6 Military transactions, net -318 -163 -1,765 -593 -250 -575 -212 -566 7 Investment income, net3 29,493 25,401 19,109 3,618 3,256 4,003 2,537 5,582 8 Other service transactions, net 7,353 4,837 819 363 -123 -253 54 -474 9 Remittances, pensions, and other transfers -2,633 -2,566 -2,891 -710 -669 -782 -934 -841 10 U.S. government grants (excluding military) -5,501 -6,287 -8,522 -1,522 -2,207 -3,313 -2,238 -2,511 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -6,131 -5,006 -5,516 -1,353 -1,369 -734 -850 -849 12 Change in U.S. official reserve assets (increase, -) —4,965 -1,1% -3,130 -565 -799 -1,109 -233 -356 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -1,371 -66 -979 -288 -271 -194 -264 -180 15 Reserve position in International Monetary Fund -2,552 -4,434 -995 -321 -331 -143 281 72 16 Foreign currencies -1,041 3,304 -1,156 44 -197 -772 -250 -248 17 Change in U.S. private assets abroad (increase, -)3 -108,121 -48,842 -11,800 -17,070 20,532 -13,003 718 -1,657 18 Bank-reported claims -111,070 -29,928 -8,504 -20,186 17,725 -4,933 135 4,350 19 Nonbank-reported claims 6,626 -6,513 6,266 1,908 2,099 970 1,201 n.a. 20 U.S. purchase of foreign securities, net -8,102 -7,007 -5,059 -756 -1,313 -3,663 -2,494 -1,862 21 U.S. direct investments abroad, net3 4,425 -5,394 -4,503 1,964 2,021 -5,377 1,876 -4,145 22 Change in foreign official assets in the United States (increase, +) 3,672 5,795 3,424 -224 -686 7,119 -11,204 8,154 23 U.S. Treasury securities 5,779 6,972 4,690 -274 -575 5,814 -7,219 8,521 24 Other U.S. government obligations -694 -476 167 146 85 -67 -307 136 25 Other U.S. government liabilities4 684 552 453 555 -139 -197 -462 503 26 Other U.S. liabilities reported by U.S. banks -1,747 545 663 328 430 2,052 -3,099 -185 27 Other foreign official assets3 -350 -1,798 -2,549 -979 -487 -483 -117 -821 28 Change in foreign private assets in the United States (increase, +)3 90,775 78,527 93,895 41,816 3,825 26,191 24,915 17,636 29 U.S. bank-reported liabilities 65,922 49,341 31,674 20,970 -5,125 4,481 13,345 326 30 U.S. nonbank-reported liabilities -2,383 -118 4,284 4,566 -2,939 -1,863 -2,655 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 7,052 8,721 22,440 6,485 5,058 9,501 2,633 5,291 32 Foreign purchases of other U.S. securities, net 6,392 8,636 12,983 506 1,603 9,380 9,510 7,117 33 Foreign direct investments in the United States, net3 13,792 11,947 22,514 9,289 5,228 4,692 2,082 4,902 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 32,821 11,513 24,660 1,889 10,997 7,013 16,979 8,883 -606 -3,170 4,200 -305 -578 37 Statistical discrepancy in recorded data before seasonal adjustment 32,821 11,513 24,660 2,495 14,167 2,813 17,284 9,461 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -4,965 -1,1% -3,131 -566 -799 -1,11<K -233 -356 39 Foreign official assets in the United States (increase, +) 2,988 5,243 2,971 -779 -547 7,316 -10,742 7,651 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 7,291 -8,283 -4,143 -2,097 -453 812 -2,021 -1,862 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 585 194 190 44 45 61 10 15 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Primarily associated with military sales contracts and other transactions 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

A54 International Statistics • December 1985 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1985 IItteemm 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 212,193 200,486 19,142 17,853 18,446 17,779 17,414 17,438 17,411 17,423 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 243,952 258,048 25,933 27,985 28,129 28,295 28,685 29,425 26,630 26,083 3 Trade balance -31,759 -57,562 -6,791 -10,131 -9,683 -10,516 -11,271 -11,987 -9,219 -8,660 NOTE. The data through 1981 in this table are reported by the Bureau of Census the export side, the largest adjustments are: (1) the addition of exports to Canada data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of not covered in Census statistics, and (2) the exclusion of military sales (which are export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in combined with other military transactions and reported separately in the "service the Census basis trade data; this adjustment has been made for all data shown in account" in table 3.10, line 6). On the import side, additions are made for gold, the table. Beginning with 1982 data, the value of imports are on a customs ship purchases, imports of electricity from Canada, and other transactions; valuation basis. military payments are excluded and shown separately as indicated above. The Census basis data differ from merchandise trade data shown in table 3.10, SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" U.S. International Transactions Summary, for reasons of coverage and timing. On (Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1985 TTyyppee 11998822 11998833 11998844 Mar. Apr. May June July Aug. Sept. 1 Total 33,958 33,747 34,934 35,493 35,493 35,782 36,088 37,071 37,154 38,295 2 Gold stock, including Exchange Stabilization Fund1 11,148 11,121 11,096 11,093 11,091 11,091 11,091 11,090 11,090 11,090 3 Special drawing rights2-3 5,250 5,025 5,641 5,973 5,971 6,163 6,196 6,510 6,692 6,847 4 Reserve position in International Monetary Fund2 7,348 11,312 11,541 11,386 11,382 11,370 11,394 11,513 11,478 11,686 5 Foreign currencies4 10,212 6,289 6,656 7,041 7,049 7,158 7,408 7,958 7,894 8,672 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 1985 AAsssseettss 11998822 11998833 11998844 Mar. Apr. May June July Aug. Sept. 1 Deposits 328 190 253 253 348 204 310 274 223 535 Assets held in custody 2 U.S. Treasury securities1 112,544 117,670 118,267 113,532 115,184 116,989 121,755 124,400 123,321 120,978 3 Earmarked gold2 14,716 14,414 14,265 14,264 14,264 14,265 14,262 14,251 14,251 14,245 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 A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1985 AAsssseett aaccccoouunntt 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug.P All foreign countries 1 Total, all currencies 469,712 477,090 452,205 452,796 462,009 460,344 458,121 456,859 462,707 456,325 2 Claims on United States 91,805 115,542 113,435 119,034 119,925 121,809 121,124' 121,271' 119,385 122,922 3 Parent bank 61,666 82,026 78,151 84,084 86,807' 86,893 85,593' 85,259' 84,037 86,769 4 5 O N t o h n e b r a b n a k n s k 2 s in United States2 \ 30,139 33.516 2 1 1 3 , , 6 6 2 6 0 4 2 1 1 3 , , 2 7 1 3 3 7 2 1 0 3 , ,0 0 9 2 2 6 ' 2 1 0 4 , , 7 1 1 9 7 9 2 1 1 4 , , 4 1 3 0 0 1 2 1 1 4 , ,4 5 6 5 1 1 ' 2 1 0 4 , , 6 7 0 3 9 9 2 1 2 4 , , 0 0 9 5 5 8 6 Claims on foreigners 358,493 342,689 318,710 314,172'' 321,683' 318,487 316,331' 314,865' 321,542 311,869 7 Other branches of parent bank 91,168 96,004 94,717 89,185' 92,990 90,896 90,421 89,428 90,763 89,033 8 Banks 133,752 117,668 100,328 104,598' 105,456' 104,292' 102,244' 101,435' 104,763 99,039 9 Public borrowers 24,131 24.517 22,872 22,932' 22,219' 22,820' 22,764' 22,716' 22,778 22,690 10 Nonbank foreigners 109,442 107,785 100,793 98,457' 101,018' 100,479' 100,902' 101,286' 103,238 101,107 11 Other assets 19,414 18,859 20,060 19,590' 20,401' 20,048 20,666' 20,723' 21,780 21,534 12 Total payable in U.S. dollars 361,982 371,508 349,342 351,796 354,570 351,281' 349,444 348,877' 344,949 340,758 13 Claims on United States 90,085 113,436 111,468 116,730 117,554' 119,214' 118,671' 118,713' 116,414 120,174 2 2 1 1 1 1 1 1 0 1 5 4 6 7 8 9 Cl P N O P B N a O i u a a o t t m o b h r h n n n e l s e e k b i b n r r c s o a a t b b n n n b b k a r k o a f a n s r o n n f k 2 r r o k c o s e r h w i e i g e n i e s n g r e U n s o r e f n s r i s p t e a d re n S t t a b t a e n s2 k | 2 1 6 7 6 5 2 1 0 1 3 1 9 8 6 9 , , , , , , , 4 5 8 0 4 4 0 7 3 7 4 1 1 7 4 7 1 7 0 3 5 2 6 7 9 4 8 3 1 0 3 8 7 2 0 7 , , , , , , , 9 3 4 5 4 9 8 7 3 2 3 0 0 9 7 2 7 1 6 9 0 2 5 2 7 2 7 7 1 1 4 7 7 6 0 8 3 7 , , , , , , , , 9 2 3 8 6 2 5 1 9 7 7 0 9 7 0 6 2 1 2 3 7 9 0 0 2 2 7 7 5 2 8 1 1 0 4 4 4 9 3 3 6 , , , , , , , , 1 7 2 0 5 4 4 4 1 9 4 7 6 4 5 6 4 2 8 4 4 9 5 2 ' ' ' 2 5 7 7 8 2 1 1 1 4 7 8 6 5 2 9 6 , , , , , , , , 2 0 9 9 7 7 0 7 2 5 5 7 2 8 4 3 9 5 7 2 6 5 3 1 ' ' ' ' ' ' ' 2 5 7 7 2 8 1 1 1 3 4 6 2 5 9 3 6 , , , , , , , , 6 7 8 2 7 6 8 9 5 9 6 6 6 1 4 4 2 7 4 9 3 1 0 6 ' ' ' ' ' ' ' 2 2 7 7 5 2 8 1 1 4 3 0 5 0 4 3 6 , , , , , , , , 6 5 3 6 8 6 7 9 6 8 4 3 5 2 0 7 4 5 9 2 8 4 5 2 ' ' ' ' ' ' ' 2 2 7 7 5 8 2 1 1 0 4 4 5 4 0 6 4 , , , , , , , 4 1 2 0 2 3 8 , 2 9 0 7 3 7 8 9 1 0 ^ 3 3 2 6 1 ' ' ' ' 2 5 1 7 7 8 1 1 1 2 4 8 5 2 4 9 6 . , , , , , , . 6 0 7 2 8 1 4 6 9 6 4 8 1 8 1 9 9 3 9 9 5 7 2 8 2 5 1 2 7 7 8 1 1 1 0 1 0 0 5 3 6 , , , , , , , , 2 9 8 8 9 8 4 9 6 4 3 8 2 5 4 3 1 8 1 3 3 1 0 3 22 Other assets 12,026 10,666 10,571 10,352 10,044' 9,803' 9,914' 9,778' 9,786 9,636 United Kingdom 23 Total, all currencies 161,067 158,732 144,385 149,534 150,705 148,711 148,285 149,599 151,455 151,117 24 Claims on United States 27,354 34,433 27,731 31,910 29,675 29,930 30,314' 31,322' 31,140 35,300 25 Parent bank 23,017 29,111 21,918 25,313 23,250 23,236 23,554' 23,93C 24,368 28,200 26 Other banks in United States2 1,429 1,561 1,511 1,649 1,613 1,691 1,525 1,474 27 Nonbanks2 J 4,337 5,322 4,384 5,036 4,914 5,045 5,147 5,701' 5,247 5,626 28 Claims on foreigners 127,734 119,280 111,772 112,935' 115,886' 113,689 112,829' 113,192' 114,827 110,475 29 Other branches of parent bank 37,000 36,565 37,897 35,382' 35,857 34,036 33,948 34,188 33,539 32,616 30 Banks 50,767 43,352 37,443 41,186' 41,010' 41,242' 39,905' 39,850' 40,546 37,796 31 Public borrowers 6,240 5,898 5,334 5,052' 4,949' 4,967' 4,932' 4,973' 5,056 5,054 32 Nonbank foreigners 33,727 33,465 31,098 31,315' 34,07<X 33,444' 34,044' 34,181' 35,686 35,009 33 Other assets 5,979 5,019 4,882 4,689' 5,144' 5,092 5,142' 5,085' 5,488 5,342 34 Total payable in U.S. dollars 123,740 126,012 112,809 116,232 114,122 111,498' 111,305' 112,686' 110,451 110,972 35 Claims on United States 26,761 33,756 26,924 30,945 28,833' 28,998' 29,389' 30,368' 30,087 34,251 36 Parent bank 22,756 28,756 21,551 24,911 22,910 22,906' 23,261' 23,625 23,995 27,897 3 3 7 8 O N t o h n e b r a b n a k n s k 2 s in United States2 1 4,005 5,000 4 1 , , 0 3 1 6 0 3 4 1 , , 5 4 3 9 6 8 4 1 , , 4 4 6 6 1 2 ' ' 4 1 , , 5 5 2 7 0 2 ' ' 4 1 , , 6 4 4 8 0 8 ' ' 5 1 , , 1 6 3 0 9 4 ' 4 1 , , 6 4 7 1 7 5 4 1 , , 9 3 9 5 9 5 39 Claims on foreigners 92,228 88,917 82,889 82,268 82,441' 79,509' 79,029' 79,464' 77,446 73,769 40 Other branches of parent bank 31,648 31,838 33,551 31,099 31,331 29,056 29,230 29,364 28,623 26,993 41 Banks 36,717 32,188 26,805 28,761' 28,184' 27,803' 27,184' 27,317' 26,349 24,382 42 Public borrowers 4,329 4,194 4,030 3,672' 3,534' 3,503' 3,500' 3,587' 3,538 3,599 43 Nonbank foreigners 19,534 20,697 18,503 18,736' 19,392' 19,147' 19,115' 19,196' 18,936 18,795 44 Other assets 4,751 3,339 2,996 3,019 2,848' 2,991' 2,887' 2,854' 2,918 2,952 Bahamas and Caymans 45 Total, ail currencies 145,156 152,083 146,811 144,665 147,041 145,096 144,033 143,549 140,785 138,510 46 Claims on United States 59,403 75,309 77,296 76,446 78,886 79,150 78,849 78,049 75,275 74,448 47 Parent bank 34,653 48,720 49,449 50,043 53,937' 52,996 51,886 51,171 48,669 47,815 4 4 8 9 O N t o h n e b r a b n a k n s k 2 s in United States2 24,750 26,589 1 1 1 6 , , 5 3 4 0 4 3 1 1 1 5 , , 3 0 0 9 5 8 1 1 0 4 , , 7 1 6 8 1 8 ' 1 1 1 4 , , 6 5 4 0 7 7 1 1 1 5 , , 7 2 2 4 3 0 1 1 1 4 , , 9 8 9 7 9 9 1 1 2 4 , , 3 2 8 2 1 5 1 14 1 , , 9 7 0 2 8 5 50 Claims on foreigners 81,450 72,868 65,598 64,408 64,339 62,164 61,604 61,959 62,209 60,964 51 Other branches of parent bank 18,720 20,626 17,661 16,235 15,685 14,716 15,271 15,645 15,669 16,479 52 Banks 42,699 36,842 30,246 30,927 31,481 29,887 28,942 28,501 29,240 27,601 53 Public borrowers 6,413 6,093 6,089 6,081 6,349 6,683 6,604 6,642 6,505 6,432 54 Nonbank foreigners 13,618 12,592 11,602 11,165 10,824 10,878 10,787 11,171 10,795 10,452 55 Other assets 4,303 3,906 3,917 3,811 3,816 3,782 3,580 3,541 3,301 3,098 56 Total payable in U.S. dollars 139,605 145,641 141,562 139,543 141,534 139,926 138,724 138,581 135,472 133,521 1. Beginning with June 1984 data, reported claims held by foreign branches 2. Data for assets vis-^-vis other banks in the United States and vis-4-vis have been reduced by an increase in the reporting threshold for "shell" branches nonbanks are combined for dates before June 1984. from $50 million to $150 million equivalent in total assets, the threshold now applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • December 1985 3.14 Continued 1985 LLiiaabbiilliittyy aaccccoouunntt 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug.'' All foreign countries 57 Total, all currencies 469,712 477,090 452,205 452,796 462,009 460,344 458,121 456,859 462,707 456,325 58 Negotiable CDs3 n.a. n.a. 37,725 41,798 40,889 38,940 37,188 37,952 37,683 37,885 59 To United States 179,015 188,070 146,955 140,906' 145,654' 145,015' 145,162' 147,019' 145,951' 143,994 60 Parent bank 75,621 81,261 78,111 72,329' 75,968' 75,889' 77,971' 79,441' 80,218' 77,063 61 Other banks in United States 33,405 29,453 18,409 17,832 17,777' 18,834' 18,782 19,430 17,032 16,087 62 Nonbanks 69,989 77,356 50,435 50,745' 51,909' 50,292' 48,409' 48,148' 48,701' 50,844 63 To foreigners 270,853 269,685 247,122 249,618' 253,886' 254,847' 253,701 250,743' 255,987 251,928 64 Other branches of parent bank 90,191 90,615 93,206 89,872 93,978 91,792 91,208 90,354 92,275 89,777 65 Banks 96,860 92,889 78,203 84,013 82,670 83,614' 81,537 80,496 82,777' 80,933 66 Official institutions 19,614 18,896 20,281 19,356 20,831 21,854 21,827 21,703 20,937 21,234 67 Nonbank foreigners 64,188 68,845 55,432 56,377' 56,407' 57,587 59,129 58,W 59,998' 59,984 68 Other liabilities 19,844 19,335 20,403 20,474' 21,580' 21,542' 22,070' 21,145' 23,086' 22,518 69 Total payable in U.S. dollars 379,270 388,291 365,851' 366,046' 369,041' 365,378 363,425' 364,687' 360,244' 356,085 70 Negotiable CDs3 n.a. n.a. 35,227 39,542' 38,199' 35,958 34,216 34,637' 33,716 34,030 71 To United States 175,528 184,305 142,943 137,162' 141,315' 140,359 140,510' 142,094' 140,707' 138,368 7? Parent bank 73,295 79,035 75,626 70,093' 73,545' 73,29C 75,347' 76,635' 77,105' 73,755 73 Other banks in United States 33,040 28,936 17,935 17,303 17,228' 18,270 18,209 18,869 16,446 15,466 74 Nonbanks 69,193 76,334 49,382 49,766' 50,542' 48,799 46,954' 46,59C 47,156' 49,147 75 To foreigners 192,510 194,139 177,630' 178,738' 179,305' 178,846 178,861' 178,648' 176,494 173,989 76 Other branches of parent bank 72,921 73,522 77,222 74,926 78,441 76,083 75,476 75,298 75,809 73,193 77 Banks 57,463 57,022 45,123' 48,726' 44,863' 45,167 44,413 44,694 43,691' 42,856 78 Official institutions 15,055 13,855 15,773 14,653 16,049 17,178 17,407 17,278 15,935 16,238 79 Nonbank foreigners 47,071 51,260 39,512 40,433' 39,952' 40,418 41,565' 41,378' 41,059' 41,702 80 Other liabilities 11,232 9,847 10,051 10,604' 10,222' 10,215' 9,838' 9,308' 9,327' 9,698 United Kingdom 81 Total, all currencies 161,067 158,732 144,385 149,534 150,705 148,711 148,285 149,599 151,455 151,117 87 Negotiable CDs3 n.a. n.a. 34,413 38,281 37,350 35,326 33,661 34,437 34,094 34,156 83 To United States 53,954 55,799 25,250 23,440' 23,735' 23,986' 24,811' 25,480' 24,167' 25,158 84 Parent bank 13,091 14,021 14,651 13,763 14,507' 14,033 14,278' 14,910' 13,434' 14,336 85 Other banks in United States 12,205 11,328 3,125 2,948 2,673' 2,665 2,735 3,571 2,853 2,839 86 Nonbanks 28,658 30,450 7,474 6,729' 6,555 7,288' 7,798 6,999' 7,880 7,983 87 To foreigners 99,567 95,847 77,424 80,449' 80,966' 80,913 81,033 81,004' 83,480 82,317 88 Other branches of parent bank 18,361 19,038 21,631 22,146 23,699 21,887 21,784 22,565 23,647 22,348 89 Banks 44,020 41,624 30,436 33,789 32,003 32,259 31,573 30,852 32,389 31,518 90 Official institutions 11,504 10,151 10,154 9,374 10,305 11,590 11,260 11,240 10,180 10,823 91 Nonbank foreigners 25,682 25,034 15,203 15,14c 14,959' 15,177 16,416 16,347' 17,264 17,628 92 Other liabilities 7,546 7,086 7,298 7,364 8,654' 8,486' 8,780' 8,678' 9,714' 9,486 93 Total payable in U.S. dollars 130,261 131,167 117,497 120,623 117,984 116,128 115,742' 117,333' 114,123 115,064 94 Negotiable CDs3 n.a. n.a. 33,070 37,031' 35,721' 33,763 32,140 32,721' 31,743 31,911 95 To United States 53,029 54,691 24,105 22,385' 22,232' 22,281 23,206 23,729' 22,254' 23,119 % Parent bank 12,814 13,839 14,339 13,506 14,127' 13,569 13,869' 14,472' 12,777' 13,773 97 Other banks in United States 12,026 11,044 2,980 2,804 2,503' 2,500 2,550 3,387 2,687 2,628 98 Nonbanks 28,189 29,808 6,786 6,075' 5,602' 6,212 6,787' 5,870' 6,790 6,718 99 To foreigners 73,477 73,279 56,923 57,655' 56,574' 56,473 56,885' 57,504' 56,783 56,208 100 Other branches of parent bank 14,300 15,403 18,294 18,772 20,127 18,451 18,375 19,053 19,640 18,241 101 Banks 28,810 29,320 18,356 20,022 17,191 17,497 17,417 17,175 17,249 16,975 107 Official institutions 9,668 8,279 8,871 7,854 8,734 9,989 9,687 9,648 8,430 9,005 103 Nonbank foreigners 20,699 20,277 11,402 11,007' 10,522' 10,536 11,406' 11,628' 11,464 11,987 104 Other liabilities 3,755 3,197 3,399 3,552' 3,457 3,611 3,511' 3,379' 3,343' 3,826 Bahamas and Caymans 105 Total, all currencies 145,156 152,083 146,811 144,665 147,041 145,096 144,033 143,549 140,785 138,510 106 Negotiable CDs3 n.a. n.a. 615 953 779 634 436 344 320 356 107 To United States 104,425 111,299 102,955 99,209' 103,046' 100,489' 99,379' 99,856' 98,682' 95,793 108 Parent bank 47,081 50,980 47,162 43,367' 45,391' 43,749' 45,557 45,740' 47,147' 43,384 109 Other banks in United States 18,466 16,057 13,938 13,590 13,959 15,112 14,545 14,748 12,979 12,153 110 Nonbanks 38,878 44,262 41,855 42,252 43,696' 41,628 39,277' 39,368 38,566r 40,256 111 To foreigners 38,274 38,445 40,320 41,529 40,367 41,102 41,437 40,621 39,081 39,679 11? Other branches of parent bank 15,796 14,936 16,782 17,111 16,744 17,179 17,759 16,615 16,645 17,638 113 Banks 10,166 11,876 12,405 12,976 12,562 13,469 12,879 13,600 12,329 11,452 114 Official institutions 1,967 1,919 2,054 1,992 1,884 1,598 2,194 1,866 1,941 1,687 115 Nonbank foreigners 10,345 11,274 9,079 9,450 9,177 8,856 8,605 8,540 8,166 8,902 116 Other liabilities 2,457 2,339 2,921 2,974' 2,849' 2,871' 2,781' 2,728' 2,702' 2,682 117 Total payable in U.S. dollars 141,908 148,278 143,582' 140,965' 143,215' 140,945 139,909 139,648 136,820 134,623 3. 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 A57 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1985 IItteemm 11998833 11998844 Feb. Mar. Apr. May June July Aug.P 1 Total1 177,950 180,556 173,356 169,815 170,565 173,637 177,742 180,687 181,108 By type 2 Liabilities reported by banks in the United States2 25,534 26,089 23,420 22,991 22,721 23,103 22,915 22,059 23,147 3 U.S. Treasury bills and certificates3 54,341 59,976 52,474 54,685 57,226 56,691 58,589 60,727 60,921 U.S. Treasury bonds and notes 4 Marketable 68,514 69,029 72,879 67,601 67,004 70,470 73,182 74,971 75,098 5 Nonmarketable4 7,250 5,800 5,300 5,300 4,900 4,500 4,500 4,500 3,550 6 U.S. securities other than U.S. Treasury securities5 22,311 19,662 19,283 19,238 18,714 18,873 18,556 18,430 18,392 By area 7 Western Europe1 67,645 69,789 67,387 63,746 65,660 67,870 70,268 73,260 75,175 8 Canada 2,438 1,528 1,136 1,715 1,403 1,558 1,571 2,010 1,664 9 Latin America and Caribbean 6,248 8,554 7,278 7,518 7,528 8,072 8,467 8,846 9,508 10 Asia 92,572 93,951 91,029 90,721 89,968 90,217 91,494 90,919 89,487 11 Africa 958 1,264 1,397 1,200 1,403 1,262 1,299 1,259 1,108 12 Other countries6 8,089 5,470 5,129 4,915 4,603 4,658 4,643 4,393 4,166 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 1984 1985 IItteemm 11998811 11998822 11998833 Sept. Dec. Mar. June 1 Banks' own liabilities 3,523 4,844 5,219 6,227 7,542 8,012 10,150 2 Banks' own claims 4,980 7,707 7,231 9,290 11,307 12,639 14,012 3 Deposits 3,398 4,251 2,731 3,641 4,537 6,148 7,437 4 Other claims 1,582 3,456 4,501 5,649 6,770 6,491 6,575 5 Claims of banks' domestic customers1 971 676 1,059 281 569 440 243 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

A58 International Statistics • December 1985 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1985 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug.? 1 All foreigners 307,056 369,607 406,457 405,239 413,225 410,655 411,144 412,861' 416,432 416,020 2 Banks' own liabilities 227,089 279,087 306,510 311,688 317,097 312,697 315,455 317,062' 318,676 317,185 3 Demand deposits 15,889 17,470 19,571 19,369 18,131 18,295 17,705 19,423r 17,629 17,763 4 Time deposits1 68,797 90,632 110,292 117,097 119,228 117,787 120,682 116,331' 115,882 118,243 5 Other2 23,184 25,874 26,099 24,991 25,127 24,338 25,614 25,782' 26,254 25,169 6 Own foreign offices3 119,219 145,111 150,547 150,211 154,611 152,277 151,453 155,526' 158,911 156,011 7 Banks' custody liabilities4 79,967 90,520 99,947 93,572 96,128 97,958 95,690 95,799^ 97,756 98,835 8 U.S. Treasury bills and certificates5 55,628 68,669 75,838 69,189 71,552 73,078 71,597 73,061 75,396 75,801 9 Other negotiable and readily transferable instruments6 20,636 17,467 18,670 18,068 18,099 18,337 17,690 16,207 16,142 16,559 10 Other 3,702 4,385 5,439 6,315 6,477 6,543 6,403 6,532' 6,218 6,475 11 Nonmonetary international and regional organizations7 4,922 5,957 4,083 5,812 5,905 6,112 6,694 5,709 4,854 7,353 12 Banks' own liabilities 1,909 4,632 1,644 2,092 2,333 3,083 4,389 3,928 3,078 5,569 13 Demand deposits 106 297 254 341 191 167 264 164 134 244 14 Time deposits' 1,664 3,584 1,102 936 1,488 2,276 3,747 3,023 2,391 4,776 15 Other2 139 750 288 815 654 640 377 740 553 550 16 Banks' custody liabilities4 3,013 1,325 2,440 3,719 3,572 3,029 2,305 1,782 1,777 1,784 17 U.S. Treasury bills and certificates 1,621 463 916 2,258 2,082 1,434 775 642 767 742 18 Other negotiable and readily transferable instruments6 1,392 862 1,524 1,461 1,490 1,593 1,531 1,140 1,010 11,,004422 19 Other 0 0 0 1 0 2 0 0 0 11 20 Official institutions* 71,647 79,876 86,065 75,894 77,675 79,947 79,794 81,504' 82,786 84,068 21 Banks' own liabilities 16,640 19,427 19,039 17,249 16,777 16,581 17,602 17,795' 17,234 17,648 22 Demand deposits 1,899 1,837 1,823 1,881 1,923 1,975 1,630 1,891 1,546 1,559 23 Time deposits1 5,528 7,318 9,374 8,673 8,469 9,126 8,678 9,05c 9,042 9,253 24 Other2 9,212 10,272 7,842 6,694 6,385 5,481 7,294 6,853' 6,646 6,836 25 Banks' custody liabilities4 55,008 60,448 67,026 58,645 60,898 63,366 62,192 63,710 65,552 66,420 26 U.S. Treasury bills and certificates5 46,658 54,341 59,976 52,474 54,685 57,226 56,691 58,589 60,727 60,921 27 Other negotiable and readily transferable instruments6 8,321 6,082 6,966 6,086 6,109 6,007 5,451 5,042 4,705 5,286 28 Other 28 25 84 85 105 133 50 78 120 213 29 Banks* 185,881 226,887 248,190 250,059 257,565 252,858 251,720 254,045' 256,703 253,863 30 Banks' own liabilities 169,449 205,347 225,341 227,722 235,132 230,426 229,794 232,319' 235,078 231,572 31 Unaffiliated foreign banks 50,230 60,236 74,794 77,512 80,521 78,149 78,341 76,793' 76,166 75,561 32 Demand deposits 8,675 8,759 10,556 9,656 9,154 9,266 8,714 9,847 8,647 8,615 33 Time deposits1 28,386 37,439 47,120 50,993 54,222 51,610 52,653 49,968' 49,934 50,001 34 Other2 13,169 14,038 17,118 16,862 17,144 17,273 16,973 16,977' 17,586 16,945 35 Own foreign offices3 119,219 145,111 150,547 150,211 154,611 152,277 151,453 155,526' 158,911 156,011 36 Banks' custody liabilities4 16,432 21,540 22,848 22,336 22,433 22,432 21,926 21,727' 21,625 22,290 37 U.S. Treasury bills and certificates 5,809 10,178 10,927 10,493 10,602 10,446 10,216 9,745 9,934 9,972 38 Other negotiable and readily transferable instruments6 7,857 7,485 7,156 6,254 6,206 6,235 6,104 6,231 6,387 6,546 39 Other 2,766 3,877 4,766 5,589 5,625 5,751 5,606 5,751' 5,303 5,772 40 Other foreigners 44,606 56,887 68,119 73,475 72,079 71,738 72,936 71,602' 72,089 70,736 41 Banks' own liabilities 39,092 49,680 60,486 64,604 62,855 62,608 63,670 63,020' 63,286 62,396 42 Demand deposits 5,209 6,577 6,938 7,491 6,863 6,888 7,098 7,520' 7,302 7,345 43 Time deposits 33,219 42,290 52,697 56,494 55,049 54,775 55,603 54,290' 54,515 54,212 44 Other2 664 813 851 619 943 945 969 1,211 1,469 839 45 Banks' custody liabilities4 5,514 7,207 7,633 8,871 9,224 9,131 9,266 8,581 8,803 8,341 46 U.S. Treasury bills and certificates 1,540 3,686 4,020 3,964 4,182 3,973 3,915 44,,008855 33,,996688 44,,116677 47 Other negotiable and readily transferable instruments6 3,065 3,038 3,024 4,267 4,294 4,501 4,604 3,793 4,040 3,685 48 Other 908 483 590 640 748 657 746 704 795 489 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 14,307 10,346 10,476 9,169 9,412 9,145 9,081 8,679 8,567 8,915 1. Excludes negotiable time certificates of deposit, which are included in 5. Includes nonmarketable certificates of indebtedness and Treasury bills "Other negotiable and readily transferable instruments." issued to official institutions of foreign countries. 2. Includes borrowing under repurchase agreements. 6. Principally bankers acceptances, commercial paper, and negotiable time 3. U.S. banks: includes amounts due to own foreign branches and foreign certificates of deposit. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 7. Principally the International Bank for Reconstruction and Development, and regulatory agencies. Agencies, branches, and majority-owned subsidiaries of the Inter-American and Asian Development Banks. foreign banks: principally amounts due to head office or parent foreign bank, and 8. Foreign central banks and foreign central governments, and the Bank for foreign branches, agencies or wholly owned subsidiaries of head office or parent International Settlements. foreign bank. 9. Excludes central banks, which are included in "Official institutions." 4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 3.17 Continued 1985 Area and country 1982 1983 1984 Feb. Mar. Apr. May June July Aug.? 1 Total 307,056 369,607 406,457 405,239 413,225 410,655 411,144 412,861' 416,432 2 Foreign countries 302,134 363,649 402,374 399,428 407,320 404,544 404,451 407,152' 411,578 3 Europe 117,756 138,072 152,553 152,221 151,660 149,108 151,219 153,718' 156,077 2 2 2 2 1 1 1 1 1 1 1 1 1 1 0 1 2 3 4 5 6 8 9 7 0 1 2 4 5 6 7 9 3 8 O O U Y A N G I T S N F S G P D B S U F t p o i w w u r u t t a . u e r e n e e o n h h S a a e r l r g l t s n r i r i e y l t g e e n k h i e t . m t t w o a m u n d e r S r z r i c c e e s n g d i e u a e a e e y . a r a l d E W n R a y m r n a l r l l K a a k y v a e - n s i i n L s a t d n d t e u s g e r x d r n n e o m m E E b u u o r r o u o p r p g e e 2 1 2 4 5 3 8 7 8 5 2 9 1 1 1 , , , , , , , , , , , 3 6 1 5 1 3 0 5 0 3 4 5 4 3 5 5 5 2 7 6 7 1 2 5 7 0 0 9 0 6 3 8 6 9 1 5 4 9 7 2 1 7 6 1 2 6 9 0 5 7 7 8 6 9 9 0 8 6 6 3 6 7 8 4 9 2 2 0 3 1 1 1 , , , , , , , , , , , 4 4 2 7 4 5 2 6 7 5 4 6 5 5 4 3 5 6 5 6 4 9 0 0 9 9 4 6 8 2 6 0 6 6 7 7 8 9 3 2 1 0 9 3 9 9 6 5 3 0 6 3 2 7 3 3 5 6 1 6 3 1 1 7 4 4 8 2 3 1 1 0 2 1 , , , , , , , , , , , 1 1 7 7 0 3 0 6 4 6 7 5 5 6 6 7 5 5 4 8 1 5 1 9 5 8 0 7 5 3 9 9 7 0 1 3 8 4 1 4 4 4 1 9 8 2 2 6 7 8 9 7 9 1 5 7 4 8 8 3 7 1 4 9 4 6 1 0 3 1 2 1 1 , , , , , , , , , , , 6 6 6 5 1 2 2 4 6 5 7 5 6 6 8 4 5 4 6 2 3 8 2 5 6 0 8 6 0 2 3 1 3 8 8 0 3 3 3 8 8 0 2 8 9 8 6 5 5 4 0 7 3 0 2 1 0 1 5 3 7 1 4 8 4 6 0 0 2 2 1 2 1 , , , , , , , , , , , 4 7 2 9 2 4 0 9 6 4 7 6 6 7 8 8 7 5 5 1 9 8 3 8 7 2 2 5 9 7 6 1 7 8 8 2 0 3 1 2 7 6 4 9 9 1 3 2 4 1 7 5 0 2 9 7 4 0 7 6 3 1 4 7 4 8 3 2 2 5 0 1 3 , , , , , , , , , , , 7 8 4 2 1 7 0 5 0 6 9 5 5 4 6 6 6 4 5 1 9 9 4 3 3 9 0 3 5 0 4 5 9 4 3 2 7 0 8 2 5 5 8 8 9 0 0 9 9 1 9 7 8 8 7 7 6 6 0 5 2 6 1 4 4 9 3 8 2 5 9 1 1 4 , , , , , . , , , , , 6 6 4 8 7 0 7 7 6 4 5 6 5 9 6 6 3 4 1 8 6 7 1 0 3 2 7 6 6 9 9 2 8 8 8 8 5 0 7 5 7 7 9 6 0 7 9 7 5 4 4 7 9 5 5 4 8 4 8 2 7 1 2 4 9 4 2 6 4 9 0 1 3 . , , , , . . , , , , 2 5 0 0 2 3 8 6 9 3 5 7 3 6 6 8 7 6 2 7 4 1 0 7 3 8 9 2 3 2 8 6 0 5 2 3 4 1 6 7 7 5 3 6 5 7 7 1 5 3 5 9 1 9 4 6 9 8 1 ' ' ' ' 2 7 1 5 4 9 4 2 2 5 9 0 1 5 , , , , , , , , , , , 6 9 6 5 7 1 7 3 2 6 6 6 3 5 5 4 1 2 5 2 6 8 5 2 4 1 8 9 2 5 7 8 9 8 0 4 3 8 6 4 4 9 9 9 3 3 9 9 8 2 3 6 8 4 6 9 7 8 7 24 Canada 12,232 16,026 16,048 18,263 17,228 17,006 16,214 15,874 16,284 25 Latin America and Caribbean 114,163 140,088 153,577 154,828 157,708 156,803 157,071 158,310' 159,132 26 Argentina 3,578 4,038 4,424 4,354 4,551 4,664 4,912 5,081' 5,322 27 Bahamas 44,744 55,818 56,897 56,928 59,600 59,069 58,195 57,406 55,858 28 Bermuda 1,572 2,266 2,370 3,410 2,799 3,159 3,192 2,503' 2,380 29 Brazil 2,014 3,168 5,332 6,143 4,656 4,743 5,376 5,187 5,677 30 British West Indies 26,381 34,545 36,747 35,171 36,593 35,765 35,489 38,965' 40,727 3 3 3 3 3 3 3 3 8 1 3 4 5 6 7 2 N J C G C C E M a h u c e o u m e u i t b l a x l h o a a a e t i e m e i d c c r m o o b a l r a a i a n l a d s Antilles 8 2 3 1 , , , , 3 5 5 6 4 6 1 9 7 9 7 5 2 2 7 7 4 0 5 6 9 6 1 3 0 1 1 11 , , , , ,, 8 3 0 7 8 66 1 7 9 4 8 4 88 0 9 2 7 8 2 99 88 9 1 4 2 2 1 2 , , , , , 0 1 5 0 8 5 1 0 5 1 9 9 0 8 1 1 3 4 2 6 6 3 0 1 2 4 3 1 , , , , 6 4 9 9 0 9 1 6 5 8 1 0 1 8 2 3 1 5 0 8 6 2 1 4 2 1 1 3 , , , , , 5 5 0 8 9 2 1 7 4 2 9 5 4 6 6 0 4 7 0 0 6 3 1 4 2 3 1 1 , , , , , 3 4 2 9 9 0 1 8 0 0 5 0 2 5 3 1 2 2 5 9 4 6 1 4 2 1 3 , , , , 4 4 9 9 9 6 1 3 5 8 7 2 5 4 9 2 7 9 2 8 6 7 1 2 4 1 1 3 , , . , , 2 5 9 0 8 5 1 0 2 0 6 7 2 3 0 6 4 3 0 6 3 3 ' 1 2 4 1 1 3 , , , , , 4 0 9 0 9 4 1 2 2 7 4 1 0 9 1 1 5 2 6 0 6 4 0 39 Panama 4,805 5,924 6,951 7,177 7,488 7,584 7,570 7,427 7.462 40 Peru 1,147 1,166 1,266 1,064 1,132 1,077 1,162 1,168 1,113 41 Uruguay 759 1,244 1,394 1,413 1,443 1,461 1,492 1,415 1,460 42 Venezuela 8,417 8,632 10,545 10,740 10,649 10,791 10,696 10,471 10,853 43 Other Latin America and Caribbean . 3,291 3,535 4,297 4,311 4,401 4,458 4,396 4,460' 4,297 44 Asia 48,716 58,570 71,115 64,981 72,095 73,233 71,509 70,477' 71,826 China 45 Mainland 203 249 1,153 1,068 980 912 698 939 46 Taiwan 2,761 4,051 4,975 5,187 5,306 5,242 5,381 5,545 5,849 47 Hong Kong 4,465 6,657 6,594 6,648 6,937 7,091 7,360 7,989 7,900 48 India 433 464 507 725 738 554 546 569 555 49 Indonesia 857 997 1,033 914 1,052 1,104 1.031 1,264' 1.463 50 Israel 606 1,722 1,268 994 941 873 988 1,053 1,011 51 Japan 16,078 18,079 21,586 22,551 24,540 22,683 22,688 21,103' 22,969 5 5 5 5 5 4 2 3 6 5 O T M P K h h t o i h i a d r l e i e i d l r p a a l p e n A i - d n E s e i a a s s t oil-exporting countries3. 1 6 3 1 , , , 7 6 4 6 7 8 2 9 3 7 9 9 2 3 0 1 9 2 1 1 , , , , 7 9 2 7 6 4 3 7 4 4 8 4 6 7 8 1 1 6 2 1 1 1 , , , , , 8 2 8 3 7 0 5 8 3 2 4 7 3 1 4 1 7 5 1 1 1 , , , , , 9 2 0 1 5 4 0 5 1 8 5 2 0 3 4 1 1 6 1 1 1 1 , , , , , 3 3 1 5 2 9 8 0 2 0 2 1 4 6 0 1 1 1 6 4 1 1 , , , , , 2 3 5 4 1 2 7 9 4 4 3 3 5 1 1 1 1 6 1 1 1 2 , , , , , 3 1 4 3 5 1 6 3 0 9 6 7 0 5 8 1 1 5 1 2 1 1 , , , , , 0 4 7 0 8 4 6 0 5 0 3 3 5 2 5 ' ' 1 1 1 1 5 1 , , , , 9 4 3 4 9 8 1 3 9 1 4 0 5 3 9 57 Africa 3,124 2,827 3,396 3,561 3,476 3,517 3,429 3,920 3,384 58 Egypt 432 671 647 637 715 747 618 745 881 59 Morocco 81 84 118 116 167 155 189 161 98 60 South Africa 292 449 328 371 244 339 273 332 181 61 Zaire 23 87 153 79 100 128 124 170 87 62 Oil-exporting countries4 1,280 620 1,189 1,450 1,346 1,177 1,114 1,497 1,099 63 Other Africa 1,016 917 961 910 903 969 1,112 1,015 1,037 64 Other countries 6,143 8,067 5,684 5,574 5,152 4,877 5,009 4,854 4,876 65 Australia 5,904 7,857 5,300 5,017 4,743 4,456 4,608 4,462 4,364 66 All other 239 210 384 557 409 422 401 392 511 67 Nonmonetary international and regional organizations 4,922 5,957 4,083 5,812 5,905 6,112 6,694 5,709 4,854 68 International 4,049 5,273 3,376 4,935 5,132 5,247 5,636 4,698 3,802 69 Latin American regional 517 419 587 580 632 706 834 782 70 Other regional5 357 265 120 296 141 159 224 203 270 1. Includes the Bank for International Settlements. Beginning April 1978, also 4. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 5. Asian, African, Middle Eastern, and European regional organizations, 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German except the Bank for International Settlements, which is included in "Other Democratic Republic, Hungary, Poland, and Romania. Western Europe." 3. 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

A60 International Statistics • December 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 1985 AArreeaa aanndd ccoouunnttrryy 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug.P 1 Total 355,705 391,312 398,558 393,212 396,898 390,022 390,992 396,253' 390,938 387,275 2 Foreign countries 355,636 391,148 397,884 392,912 396,658 389,942 390,178 395,543' 390,663 386,837 3 Europe 85,584 91,927 97,917 98,019 101,759 99,427 99,997 100,953' 100,387 100,896 4 Austria 229 401 433 367 484 519 552 536 815 703 5 Belgium-Luxembourg 5,138 5,639 4,794 5,097 5,233 5,161 5,264 5,219' 5,740 5,496 6 Denmark 554 1,275 648 589 638 601 560 474 498 492 7 Finland 990 1,044 898 907 826 804 700 896 875 738 8 France 7,251 8,766 9,117 9,627 10,042 10,273 10,462 9,969 10,006 10,226 9 Germany 1,876 1,284 1,313 945 1,072 1,008 1,015 1,223' 1,095 908 10 Greece 452 476 817 840 848 907 921 1,002 947 959 11 Italy 7,560 9,018 9,079 8,481 8,711 8,256 7,798 7,52c 7,623 6,522 12 Netherlands 1,425 1,267 1,351 1,490 1,348 1,401 1,040 1,339 1,142 1,188 13 Norway 572 690 675 808 621 748 753 750 710 683 14 Portugal 950 1,114 1,243 1,286 1,186 1,151 1,158 1,156 1,151 1,181 15 Spain 3,744 3,573 2,884 3,135 2,978 2,890 2,587 2,70c 2,387 2,146 16 Sweden 3,038 3,358 2,220 2,586 2,342 2,338 2,177 2,067' 2,698 2,478 17 Switzerland 1,639 1,863 2,123 2,110 1,921 1,843 1,631 2,231 2,669 2,629 18 Turkey 560 812 1,130 1,155 1,172 1,147 1,162 1,208 1,313 1,234 19 United Kingdom 45,781 47,364 55,184 54,648 58,381 56,199 57,812 58,377' 56,432 59,275 20 Yugoslavia 1,430 1,718 1,886 1,783 1,793 1,892 1,940 1,958 1,972 1,954 21 Other Western Europe1 368 477 596 679 642 640 760 775' 679 625 22 U.S.S.R 263 192 142 178 203 245 312 297 250 239 23 Other Eastern Europe2 1,762 1,598 1,382 1,308 1,317 1,404 1,393 1,255 1,383 1,223 24 Canada 13,678 16,341 16,057 19,082 18,766 18,349 17,891 17,889' 16,696 16,979 25 Latin America and Caribbean 187,969 205,491 207,561 200,736 202,808 199,034 201,104 203,974' 201,318 196,665 26 Argentina 10,974 11,749 11,043 11,280 11,162 11,163 11,346 11,41fr 11,456 11,293 27 Bahamas 56,649 59,633 57,904 54,548 57,608 55,526 56,763 59,477' 55,610 53,351 28 Bermuda 603 566 592 448 464 633 506 563' 405 478 29 Brazil 23,271 24,667 26,315 26,146 26,124 26,207 26,434 26,549' 26,560 26,453 30 British West Indies 29,101 35,527 38,077 36,806 36,299 35,503 36,050 36,372' 37,436 35,793 31 Chile 5,513 6,072 6,839 6,713 6,775 6,676 6,634 6,68C 6,663 6,476 32 Colombia 3,211 3,745 3,499 33,,440066 3,313 3,246 3,270 3,207 3,210 3,195 33 Cuba 3 0 0 11 0 0 0 0 0 0 34 Ecuador 2,062 2,307 2,420 2,489 2,470 2,467 2,487 2,493' 2,450 2,430 35 Guatemala3 124 129 158 157 154 154 149 145 153 149 36 Jamaica3 181 215 252 253 233 223 237 227 234 228 37 Mexico 29,552 34,802 34,824 33,660 33,410 32,554 32,748 32,384' 32,176 32,364 38 Netherlands Antilles 839 1,154 1,350 1,393 1,254 1,319 1,386 1,249 1,110 1,135 39 Panama 10,210 7,848 7,707 7,071 7,083 7,039 6,751 6,856 6,985 6,923 40 Peru 2,357 2,536 2,384 2,337 2,345 2,353 2,310 2,286' 2,237 2,221 41 Uruguay 686 977 1,088 1,021 1,019 1,014 1,013 1,013 1,007 1,018 42 Venezuela 10,643 11,287 11,017 10,929 10,956 10,804 10,947 10,996 10,992 11,027 43 Other Latin America and Caribbean 1,991 2,277 2,091 2,077 2,139 2,154 2,072 2.06C 2,633 2,132 44 Asia 6600,,995522 67,837 66,278 6655,,335511 63,595 63,430 61,788 63,47C 6633,,224466 63,590 China 45 Mainland 214 292 710 741 650 572 543 358' 635 560 46 Taiwan 2,288 1,908 1,849 1,827 1,954 1,937 1,641 1,718' 1,540 1,517 47 Hong Kong 6,787 8,489 7,283 7,351 6,639 6,897 7,290 7,237' 7,488 7,989 48 India 222 330 425 354 284 307 270 310 371 460 49 Indonesia 348 805 734 780 780 704 701 682 631 623 50 Israel 2,029 1,832 2,088 2,041 1,941 2,004 2,038 2,598' 2,053 1,927 51 Japan 28,379 30,354 29,059 29,092 28,008 26,594 25,407 26,529' 26,336 27,644 52 Korea 9,387 9,943 9,285 8,813 9,298 9,434 9,127 9,158' 9,707 9,280 53 Philippines 2,625 2,107 2,550 2,560 2,435 2,360 2,384 2,448' 2,454 2,487 54 Thailand 643 1,219 1,125 1,076 1,005 939 852 862 750 755 55 Middle East oil-exporting countries4 3,087 4,954 5,044 4,856 4,708 5,509 5,546 5,120 5,315 4,116 56 Other Asia 4,943 5,603 6,126 5,860 5,895 6,171 5,989 6,449' 5,967 6,233 57 Africa 5,346 6,654 6,615 6,376 6,221 6,299 6,203 6,075' 5,959 5,718 58 Egypt 322 747 728 584 674 629 612 626 606 585 59 Morocco 353 440 583 582 584 595 577 592 596 598 60 South Africa 2,012 2,634 2,795 2,666 2,420 2,508 2,497 2,524' 2,402 2,214 61 Zaire 57 33 18 29 24 24 24 24 24 25 62 Oil-exporting countries5 801 1,073 842 791 819 893 871 740 743 722 63 Other 1,802 1,727 1,649 1,724 1,700 1,651 1,621 1,569' 1,589 1,574 64 Other countries 2,107 2,898 3,456 3,348 3,510 3,403 3,194 3,183' 3,057 2,988 65 Australia 1,713 2,256 2,778 2,635 2,824 2,755 2,536 2,498' 2,320 2,225 66 All other 394 642 678 713 686 648 658 685' 737 764 67 Nonmonetary international and regional organizations6 68 164 674 300 240 80 815 71C 275 438 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German "Other Western Europe." Democratic Republic, Hungary, Poland, and Romania. NOTE. Data for period before April 1978 include claims of banks' domestic 3. Included in "Other Latin America and Caribbean" through March 1978. customers on foreigners. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 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 1985 TTyyppee ooff ccllaaiimm 11998822 11998833 11998844 Feb. Mar. Apr. May June July Aug.'' 1 Total 333333399999996666666,,,,,,,000000011111115555555 444444422222226666666,,,,,,,222222211111115555555 444444433333331111111,,,,,,,444444477777774444444 444444433333330000000,,,,,,,555555544444444444444 444444422222225555555,,,,,,,666666699999992222222''''''' 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 333333355555555555555,,,,,,,777777700000005555555 333333399999991111111,,,,,,,333333311111112222222 333333399999998888888,,,,,,,555555555555558888888 393,212 333333399999996666666,,,,,,,888888899999998888888 390,022 390,992 333333399999996666666,,,,,,,222222255555553333333''''''' 390,938 387,275 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 44444445555555,,,,,,,444444422222222222222 55555557777777,,,,,,,555555566666669999999 66666661111111,,,,,,,444444477777773333333 61,828 66666661111111,,,,,,,666666677777776666666 60,972 61,673 66666661111111,,,,,,,222222244444441111111''''''' 61,188 60,862 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 111111122222227777777,,,,,,,222222299999993333333 111111144444446666666,,,,,,,333333399999993333333 111111155555556666666,,,,,,,222222200000002222222 154,524 111111155555557777777,,,,,,,999999933333333333333 155,144 156,989 111111166666662222222,,,,,,,888888844444440000000''''''' 158,174 155,517 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222221111111,,,,,,,333333377777777777777 111111122222223333333,,,,,,,888888833333337777777 111111122222223333333,,,,,,,777777799999991111111 121,372 111111122222222222222,,,,,,,111111144444445555555 119,369 119,108 111111111111118888888,,,,,,,444444499999993333333''''''' 117,921 117,596 66 DDeeppoossiittss 44444444444444,,,,,,,222222222222223333333 44444447777777,,,,,,,111111122222226666666 44444448888888,,,,,,,111111166666668888888 47,685 44444449999999,,,,,,,666666677777772222222 47,664 48,096 44444448888888,,,,,,,111111133333335555555''''''' 48,798 49,258 77 OOtthheerr 77777777777777,,,,,,,111111155555553333333 77777776666666,,,,,,,777777711111111111111 77777775555555,,,,,,,666666622222224444444 73,687 77777772222222,,,,,,,444444477777773333333 71,706 71,012 77777770000000,,,,,,,333333355555558888888''''''' 69,124 68,338 88 AAllll ootthheerr ffoorreeiiggnneerrss 66666661111111,,,,,,,666666611111114444444 66666663333333,,,,,,,555555511111114444444 55555557777777,,,,,,,000000099999992222222 55,487 55555555555555,,,,,,,111111144444443333333 54,536 53,222 55555553333333,,,,,,,666666677777779999999''''''' 53,655 53,300 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 .... 44444440000000,,,,,,,333333311111110000000 33333334444444,,,,,,,999999900000003333333 33333332222222,,,,,,,999999911111116666666 33333333333333,,,,,,,666666644444446666666 22222229999999,,,,,,,444444433333339999999''''''' 2222222,,,,,,,444444499999991111111 2222222,,,,,,,999999966666669999999 3333333,,,,,,,333333388888880000000 3333333,,,,,,,888888877777771111111 2222222,,,,,,,888888877777770000000 11 Negotiable and readily transferable 33333330000000,,,,,,,777777766666663333333 22222226666666,,,,,,,000000066666664444444 22222223333333,,,,,,,888888800000005555555 22222224444444,,,,,,,555555577777776666666 22222221111111,,,,,,,000000066666664444444 12 Outstanding collections and other 7777777,,,,,,,000000055555556666666 5555555,,,,,,,888888877777770000000 5555555,,,,,,,777777733333332222222 5555555,,,,,,,111111199999998888888 5555555,,,,,,,555555500000005555555''''''' 13 MEMO: Customer liability on 33333338888888,,,,,,,111111155555553333333 33333337777777,,,,,,,777777711111115555555 33333336666666,,,,,,,666666666666667777777 33333335555555,,,,,,,222222200000004444444 33333331111111,,,,,,,666666699999999999999''''''' Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 42,499 46,217 40,508' 40,261 39,703 39,375 37,455' 36,073' 37,121 n.a. 1. U.S. banks: includes amounts due from own foreign branches and foreign 3. Principally negotiable time certificates of deposit and bankers acceptances. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 4. Includes demand and time deposits and negotiable and nonnegotiable regulatory agencies. Agencies, branches, and majority-owned subsidiaries of certificates of deposit denominated in U.S. dollars issued by banks abroad. For foreign banks: principally amounts due from head office or parent foreign bank, description of changes in data reported by nonbanks, see July 1979 BULLETIN, and foreign branches, agencies, or wholly owned subsidianes of head office or p. 550. parent foreign bank. NOTE. Beginning April 1978, data for banks' own claims are given on a monthly 2. Assets owned by customers of the reporting bank located in the United basis, but the data for claims of banks' own domestic customers are available on a States that represent claims on foreigners held by reporting banks for the account quarterly basis only. of their domestic customers. 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 1984 1985 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998811AA 11998822 11998833 Sept. Dec. Mar. June 1 Total 154,590 228,150 243,715 240,590 243,170 239,222 231,713 By borrower 2 Maturity of 1 year or less' 116,394 173,917 176,158 162,802 165,321 164,883 158,641 3 Foreign public borrowers 15,142 21,256 24,039 21,086 22,141 23,496 23,899 4 All other foreigners 101,252 152,661 152,120 141,716 143,180 141,387 134,742 5 Maturity of over 1 year1 38,197 54,233 67,557 77,788 77,849 74,339 73,072 6 Foreign public borrowers 15,589 23,137 32,521 38,571 39,672 38,088 37,425 7 All other foreigners 22,608 31,095 35,036 39,217 38,177 36,251 35,647 By area Maturity of 1 year or less1 8 Europe 28,130 50,500 56,117 56,741 58,173 60,269 55,656 9 Canada 4,662 7,642 6,211 5,841 5,978 7,481 6,135 10 Latin America and Caribbean 48,717 73,291 73,660 61,449 60,825 60,071 63,545 11 31,485 37,578 34,403 32,268 33,435 30,651 27,537 12 Africa 2,457 3,680 4,199 4,798 4,442 4,109 4,003 13 All other2 943 1,226 1,569 11,,770055 2,468 2,301 1,764 Maturity of over 1 year1 14 Europe 8,100 11,636 13,576 11,249 9,590 8,545 8,628 15 Canada 1,808 1,931 1,857 1,801 1,890 2,181 2,116 16 Latin America and Caribbean 25,209 35,247 43,888 56,625 57,834 55,372 53,507 17 1,907 3,185 4,850 5,106 5,386 5,235 5,203 18 Africa 900 1,494 2,286 1,857 2,033 1,963 1,9% 19 All other2 272 740 1,101 1,150 1,116 1,043 1,622 • Liabilities and claims of banks in the United States were increased, beginning 1. Remaining time to maturity, in December 1981, by the shift from foreign branches to international banking 2. Includes nonmonetary international and regional organizations, facilities in the United States of liabilities to, and claims on, foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • December 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 1983 1984 1985 AArreeaa oorr ccoouunnttrryy 11998811 11998822 June Sept. Dec. Mar. June7 Sept. Dec. Mar. JuneP 1 Total 415.2 438.7 439.9 431.0 437.3 435.1 430.6 410.1 407.7 409.3 400.6 2 G-10 countries and Switzerland 175.5 179.7 177.1 168.8 168.0 166.0 157.7 148.0 147.6 152.4 146.7 3 Belgium-Luxembourg 13.3 13.1 13.3 12.6 12.4 11.0 10.9 9.8 8.8 9.4 9.0 4 France 15.3 17.1 17.1 16.2 16.3 15.9 14.2 14.3 14.1 14.6 13.6 5 Germany 12.9 12.7 12.6 11.6 11.3 11.7 10.9 10.0 9.0 8.9 9.6 6 Italy 9.6 10.3 10.5 9.9 11.4 11.2 11.5 9.7 10.1 10.0 8.9 7 Netherlands 4.0 3.6 4.0 3.6 3.5 3.4 3.0 3.4 3.9 3.7 3.7 8 Sweden 3.7 5.0 4.7 4.9 5.1 5.2 4.3 3.5 3.2 3.1 2.9 9 Switzerland 5.5 5.0 4.8 4.2 4.3 4.3 4.2 3.9 3.9 4.2 4.0 10 United Kingdom 70.1 72.1 70.8 67.8 65.4 65.1 60.5 57.4 59.8 64.8 65.2 11 Canada 10.9 10.4 10.8 8.9 8.3 8.6 8.9 8.1 7.8 9.0 8.0 12 Japan 30.2 30.2 28.5 29.0 29.9 29.7 29.3 27.9 27.2 24.7 21.9 13 Other developed countries 28.4 33.7 34.5 34.3 36.1 35.7 37.1 36.3 33.8 33.0 32.4 14 Austria 1.9 1.9 2.1 1.9 1.9 2.0 1.9 1.8 1.6 1.6 1.6 15 Denmark 2.3 2.4 3.4 3.3 3.4 3.4 3.1 2.9 2.2 2.1 1.9 16 Finland 1.7 2.2 2.1 1.8 2.4 2.1 2.3 1.9 1.9 1.8 1.8 17 Greece 2.8 3.0 2.9 2.9 2.8 3.0 3.3 3.2 2.9 2.9 2.9 18 Norway 3.1 3.3 3.4 3.2 3.3 3.2 3.2 3.2 3.0 2.9 2.9 19 Portugal 1.1 1.5 1.4 1.4 1.5 1.4 1.7 1.6 1.4 1.4 1.3 20 Spain 6.6 7.5 7.2 7.1 7.1 7.1 7.3 6.9 6.5 6.5 5.9 21 Turkey 1.4 1.4 1.4 1.5 1.7 1.9 2.0 2.0 1.9 1.9 2.0 22 Other Western Europe 2.1 2.3 2.0 2.1 1.8 1.8 1.9 1.7 1.7 1.7 1.8 23 South Africa 2.8 3.7 3.9 4.7 4.7 4.8 4.7 5.0 4.5 4.2 3.9 24 Australia 2.5 4.4 4.5 4.4 5.5 5.2 5.7 6.2 6.1 6.2 6.3 25 OPEC countries2 24.8 27.4 28.3 27.2 28.9 28.6 26.7 25.0 25.6 25.2 23.6 26 Ecuador 2.2 2.2 2.2 2.1 2.2 2.1 2.1 2.1 2.2 2.2 2.3 27 Venezuela 9.9 10.5 10.4 9.8 9.9 9.7 9.5 9.2 9.3 9.3 9.3 28 Indonesia 2.6 3.2 3.2 3.4 3.8 4.0 4.0 3.8 3.7 3.6 3.4 29 Middle East countries 7.5 8.7 9.5 9.1 10.0 9.8 8.4 7.4 8.2 7.8 6.5 30 African countries 2.5 2.8 3.0 2.8 3.0 3.0 2.7 2.5 2.3 2.3 2.1 31 Non-OPEC developing countries 96.3 107.1 108.8 109.8 111.6 112.2 112.8 111.9 112.2 111.3 110.4 Latin America 32 Argentina 9.4 8.9 9.4 9.5 9.5 9.5 9.2 9.1 8.7 8.6 8.6 33 Brazil 19.1 22.9 22.7 23.1 23.1 25.1 25.4 26.3 26.3 26.4 26.6 34 Chile 5.8 6.3 5.8 6.3 6.4 6.5 6.7 7.1 7.0 7.0 6.9 35 Colombia 2.6 3.1 3.2 3.2 3.2 3.1 3.0 2.9 2.9 2.8 2.7 36 Mexico 21.6 24.5 25.3 25.9 26.1 25.6 26.0 26.1 25.8 25.7 25.6 37 Peru 2.0 2.6 2.6 2.4 2.4 2.3 2.3 2.2 2.2 2.2 2.1 38 Other Latin America 4.1 4.0 4.3 4.2 4.2 4.4 4.1 3.9 3.9 3.7 3.6 Asia China 39 Mainland .2 .2 .2 .2 .3 .3 .6 .5 .7 .7 .3 40 Taiwan 5.1 5.3 5.1 5.2 5.3 4.9 5.3 5.2 5.1 5.3 5.5 41 India .3 .6 .7 .8 1.0 1.0 1.0 1.1 1.0 1.0 1.0 42 Israel 2.1 2.3 2.3 1.7 1.9 1.6 1.9 1.7 1.8 1.7 2.3 43 Korea (South) 9.4 10.9 10.9 10.9 11.3 11.1 11.2 10.3 10.8 10.5 10.1 44 Malaysia 1.7 2.1 2.6 2.8 2.9 2.8 2.7 3.0 2.8 2.8 2.8 45 Philippines 6.0 6.3 6.4 6.2 6.2 6.7 6.3 5.9 6.0 6.1 5.9 46 Thailand 1.5 1.6 1.8 1.8 2.2 2.1 1.9 1.8 1.8 1.7 1.5 47 Other Asia 1.0 1.1 1.2 1.0 1.0 .9 1.1 .9 1.1 1.1 .9 Africa 48 Egypt 1.1 1.2 1.3 1.4 1.5 1.4 1.4 1.2 1.2 1.1 1.0 49 Morocco .7 .7 .8 .8 .8 .8 .8 .8 .8 .8 .8 50 Zaire .2 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 51 Other Africa3 2.3 2.4 2.2 2.4 2.3 2.2 1.9 1.9 2.1 2.2 2.0 52 Eastern Europe 7.8 6.2 5.8 5.3 5.3 4.9 4.9 4.5 4.4 4.3 4.3 53 U.S.S.R .6 .3 .4 .2 .2 .2 .2 .2 .1 .2 .3 54 Yugoslavia 2.5 2.2 2.3 2.3 2.4 2.3 2.3 2.3 2.3 2.2 2.2 55 Other 4.7 3.7 3.0 2.8 2.8 2.5 2.4 2.1 2.0 1.9 1.8 56 Offshore banking centers 63.7 66.8 69.3 68.7 70.5 71.4 74.1 66.9 66.8 66.2 65.9 57 Bahamas 19.0 19.0 20.7 21.6 21.8 24.6 27.5 23.7 21.5 21.6 21.5 58 Bermuda .7 .9 .8 .8 .9 .7 .7 1.0 .9 .7 .9 59 Cayman Islands and other British West Indies 12.4 12.9 12.7 10.5 12.2 12.0 12.2 11.1 11.7 12.3 12.4 60 Netherlands Antilles 3.2 3.3 2.6 4.1 4.2 3.3 3.3 3.1 3.4 3.3 3.2 61 Panama4 7.7 7.6 6.6 5.7 6.0 6.3 6.6 5.7 6.8 5.7 5.5 62 Lebanon .2 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.8 13.9 14.5 15.2 15.0 14.4 13.5 12.7 12.5 12.4 12.6 64 Singapore 8.7 9.2 11.2 10.5 10.3 10.0 10.2 9.5 9.8 10.0 9.6 65 Others5 .1 .0 .0 .1 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 18.8 17.9 16.2 16.9 17.0 16.3 17.3 17.3 17.3 16.9 17.5 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 of foreign 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 A63 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1984 1985 Type, and area or country 998811 11998822 11998833 Mar. June Sept. Dec. Mar.P 1 Total 28,618 27,512 25,268' 29,571' 34,269' 30,759' 28,79y 25,564 2 Payable in dollars 24,909 24,280 22,247' 26,334' 31,071' 27,954' 25,920' 22,886 3 Payable in foreign currencies 3,709 3,232 3,020 3,237 3,198 2,804 2,873 2,678 By type 4 Financial liabilities 12,157 11,066 10,494' 14,267' 18,595' 15,90<y 13,937' 11,073 5 Payable in dollars 9,499 8,858 8,715' 12,249' 16,553' 14,103' 12,069' 9,322 6 Payable in foreign currencies 2,658 2,208 1,779 2,018 2,043 1,797 1.868 1,751 7 Commercial liabilities 16,461 16,446 14,774 15,304 15,674 14,859 14,857 14,490 8 Trade payables 10,818 9,438 7,765 7,893 7,897 6,900 6,990 6,961 9 Advance receipts and other liabilities... 5,643 7,008 7,009 7,411 7,776 7,959 7,867 7,529 10 Payable in dollars 15,409 15,423 13.533 14,085 14,518 13,852 13,851 13,563 11 Payable in foreign currencies 1,052 1,023 1,241 1,219 1,155 1,007 1,006 927 By area or country Financial liabilities 12 Europe 6,825 6,501 5,742' 7,190' 7,335 6,679 6,798 6,100 13 Belgium-Luxembourg 471 505 302 428 359 428 471 298 14 France 709 783 843 956 900 910 995 8% 15 Germany 491 467 502 524 571 521 489 506 16 Netherlands 748 711 621' 569' 595 595 578 602 17 Switzerland 715 792 486 641 563 514 569 541 18 United Kingdom 3,565 3,102 2,839 3,841 4,097 3,463 3,389 3,028 19 Canada 963 746 764 795 735 825 863 840 20 Latin America and Caribbean 3,356 2,751 2,628' 4,90C 9,038' 6,800 4,561' 2,652 21 Bahamas 1,279 904 751 1,419 3,642 2,606 1,423 853 22 Bermuda 7 14 13 51 13 11 13 25 23 Brazil.. 22 28 32 37 25 33 35 29 24 British West Indies 1,241 1,027 1,039' 2,635 4,546 3,271' 2,105' 1,521 25 Mexico 102 121 213 243 237 260 367 25 26 Venezuela 98 114 124 121 124 130 137 3 27 Asia 976 1,039 1,332 1,355 1,462 1,566 1,682 1,460 28 Japan 792 715 898 947 1,013 1,085 1,121 945 29 Middle East oil-exporting countries2. 75 169 170 170 180 144 147 116 30 Africa 14 17 19 19 16 16 14 12 0 0 0 0 0 1 0 0 31 Oil-exporting countries3 24 12 10 9 9 14 19 10 32 All other4 Commercial liabilities 3,770 3,831 3,245 3,567 3,409 3,961 3,987 3,486 33 Europe 71 52 62 40 45 34 48 37 34 Belgium-Luxembourg 573 598 437 488 525 430 438 401 35 France 545 468 427 417 501 558 619 553 36 Germany 220 346 268 259 265 239 245 272 37 Netherlands 424 367 241 477 246 405 257 233 38 Switzerland 880 1,027 732 847 794 1,133 1,082 734 39 United Kingdom 40 Canada 897 1,495 1,841 1,776 1,840 1,906 1,975 1,727 41 Latin America and Caribbean 1,044 1,570 1,473 1,807 1,705 1,758 1,871 1,698 42 Bahamas 2 16 1 14 17 1 7 11 43 Bermuda 67 117 67 158 124 110 114 112 44 Brazil 67 60 44 68 31 68 124 101 45 British West Indies 2 32 6 33 5 8 32 21 46 Mexico 340 436 585 682 568 641 586 654 47 Venezuela 276 642 432 560 630 628 636 395 48 Asia 9,384 8,144 6,741 6,620 6,989 5,569 5,307 5,782 49 Japan 1,094 1,226 1,247 1,291 1,235 1,429 1,256 1,241 50 Middle East oil-exporting countries2'5 7,008 5,503 4,178 3,735 4,190 2,364 2,372 2,786 51 Africa 703 753 553 539 684 597 588 727 52 Oil-exporting countries3 344 277 167 243 217 251 233 255 53 All other4 664 651 921 995 1,046 1,068 1,128 1,070 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

A64 International Statistics • December 1985 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1984 1985 Type, and area or country 998811 11998822 11998833 Mar. June Sept. Dec. Mar.P 1 Total 36,185 28,725 34,79<X 33,727' 32,099' 30,626' 29,570' 28,404 2 Payable in dollars 32,582 26,085 31,695' 30,879' 29,118' 27,835' 26,973' 25,843 3 Payable in foreign currencies 3,603 2,640 3,096 2,848 2,982 2,792 2,597 2,560 By type 4 Financial claims 21,142 17,684 23,66C 22,850' 21,646' 20,227' 18,980' 18,118 5 Deposits 15,081 13,058 18,375 17,764' 16,498' 15,419' 14,347' 14,126 6 Payable in dollars 14,456 12,628 17,872 17,332' 15,977' 14,979' 13,927' 13,629 7 Payable in foreign currencies 625 430 503 432 522 439 420 497 8 Other financial claims 6,061 4,626 5,284' 5,086' 5,148' 4,808' 4,633 3,992 9 Payable in dollars 3,599 2,979 3,328' 3,341' 3,387' 3,116' 3,190 2,427 10 Payable in foreign currencies 2,462 1,647 1,956 1,745 1,761 1,693 1,442 1,565 11 Commercial claims 15,043 11,041 11,131 10,877' 10,454' 10,399' 10,591 10,286 12 Trade receivables 14,007 9,994 9,721 9,554' 9,111' 8,896' 9,110 8,762 13 Advance payments and other claims.. 1,036 1,047 1,410 1,323 1,343 1,503 1,481 1,524 14 Payable in dollars 14,527 10,478 10,494 10,206' 9,754' 9,740' 9,856 9,787 15 Payable in foreign currencies 516 563 637 671 699 659 735 499 By area or country Financial claims 16 Europe 4,596 4,873 6,452' 6,367' 6,485' 5,703' 5,643' 5,691 17 Belgium-Luxembourg 43 15 37 30 37 15 15 29 18 France 285 134 150 171 151 151' 126' 86 19 Germany 224 178 163' 148' 166' 192' 224 196 20 Netherlands 50 97 71 32 158 62 66 72 21 Switzerland 117 107 38 115 61 64 66 46 22 United Kingdom 3,546 4,064 5,781 5,663' 5,660' 4,988' 4,745' 4,974 23 Canada 6,755 4,377 5,974' 5,496' 5,302' 4,492' 4,006 3,945 24 Latin America and Caribbean 8,812 7,546 10,164' 9,971' 8,615' 8,859' 8,045 7,427 25 Bahamas 3,650 3,279 4,745 4,017' 3,269' 3,392' 3,270 2,992 26 Bermuda 18 32 102 3 11 5 6 4 27 Brazil 30 62 53 87 83 84 100 98 28 British West Indies 3,971 3,255 4,163 4,946' 4,415' 4,495' 3,905 3,745 29 Mexico 313 274 293' 281' 230 232 215 201 30 Venezuela 148 139 134 130 124 128 125 101 31 Asia 758 698 764 762' 977 900 961 856 32 Japan 366 153 297 318' 321 371 353 509 33 Middle East oil-exporting countries2 37 15 4 7 8 7 13 6 34 Africa 173 158 147 144 158 160 210 101 35 Oil-exporting countries3 46 48 55 42 35 37 85 32 36 All other4 48 31 159' 109' 109 113 114 97 Commercial claims 5,405 3,826 3,670 3,610 3,555 3,570 3,812 3,369 37 Europe 234 151 135 173 142 128 138 149 38 Belgium-Luxembourg 776 474 459 413 408 411 440 375 39 France 561 357 349 365 447 370 374 359 40 Germany 299 350 334 310 306 303 340 345 41 Netherlands 431 360 317 336 250 289 271 253 42 Switzerland 985 811 809 787 812 891 1,063 872 43 United Kingdom 44 Canada 967 633 829 1,061 933 1,026 1,021 1,248 45 Latin America and Caribbean 3,479 2,526 22,,669955 2,419 2,042 1,976 1,973 1,913 46 Bahamas 12 21 88 8 4 14 8 9 47 Bermuda 223 261 190 216 89 88 115 164 48 Brazil 668 258 493 357 310 219 214 210 49 British West Indies 12 12 7 7 8 10 7 6 50 Mexico 1,022 775 884 745 577 595 583 493 51 Venezuela 424 351 272 268 241 245 206 193 52 Asia 3,959 3,050 3,063 3,010' 3,091' 2,895' 3,086 3,012 53 Japan 1,245 1,047 1,114 1,195' 1,183' 1,089' 1,191 1,154 54 Middle East oil-exporting countries2 905 751 737 701 710 703 688 693 55 Africa 772 588 588 497 536 595 470 522 56 Oil-exporting countries3 152 140 139 132 128 135 134 177 57 All other4 461 417 286 280 297 338 229 221 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 A65 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1985 1985 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998833 11998844 A Ja ug n . - Feb. Mar. Apr. May June July Aug.? U.S. corporate securities STOCKS 1 Foreign purchases 69,770 60,473 50,044 7,125 6,303 5,106 6,476 6,471' 7,181 6,355 64,360 63,388 49,386 7,180 6,748 5,071 6,371 6,069r 6,522 5,699 2 Foreign sales 5,410 -2,915 658 -56 -445 36 106 402' 659 655 3 Net purchases, or sales (—) ... 5,312 -3,030 624 -51 -402 28 149 404' 559 655 4 Foreign countries 3,979 -2,975 -1,002 -215 -582 -161 -269 72' 336 377 5 Europe -97 -405 -50 -41 -13 24 17 26 -3 -41 6 France 1,045 -50 -88 -109 -113 23 38 5 126 76 7 Germany -109 -315 -340 -108 -129 16 -48 -86 42 18 8 Netherlands 1,325 -1,490 -484 -133 -122 -48 -81 49 38 -29 9 Switzerland 1,799 -647 -187 129 -195 -191 -214 49' 104 308 10 United Kingdom 1,151 1,673 328 168 -2 33 9 -62 66 68 11 Canada 529 493 1,111 158 80 169 247 132 119 108 12 Latin America and Caribbean. -808 -1,998 105 -101 116 -96 44 106' 53 35 13 Middle East1 395 -372 -5 -99 -41 91 101 174 -23 56 14 Other Asia 42 -23 16 -2 -13 -1 -8 13 25 9 15 Africa 24 171 70 40 39 -6 25 -31 -16 1 16 Other countries 17 Nonmonetary international and 98 115 34 -5 -43 8 -44 -1 100 1 regional organizations.... BONDS2 24,000 39,331 50,310 8,219 5,484 4,501 6,747 5,319' 8,502 5,602 18 Foreign purchases 23,097 26,071 28,104 3,649 2,598 3,068 3,689 3,943' 4,254 3,797 19 Foreign sales 903 13,260 22,206 4,570 2,886 1,432 3,058 1,376' 4,249 1,805 20 Net purchases, or sales (-) ... 888 12,963 21,871 4,489 2,936 1,408 3,246 1,243' 3,597 2,116 21 Foreign countries 909 11,793 20,387 4,143 2,952 1,634 2,762 1,199' 3,210 1,852 -89 207 179 -17 -10 18 0 -35 -2 169 22 Europe 344 1,731 268 -153 -112 174 -6 13 182 104 23 France 51 93 104 44 8 -9 -11 -9 -2 74 24 Germany 583 644 1,773 315 483 65 71 93 492 244 25 Netherlands 434 8,520 17,434 4,018 2,550 1,294 2,398 1,039' 2,391 1,303 26 Switzerland 123 -71 63 -11 -5 0 43 4 -4 -24 27 United Kingdom 100 390 289 50 69 -82 178 27' 39 -82 28 Canada -1,161 -1,011 -1,806 -84 -127 -507 -112 -507' -265 -80 29 Latin America and Caribbean. 865 11,,886622 2,926 337 89 381 372 518 610 479 30 Middle East1 0 11 6 0 0 0 1 0 3 11 31 Other Asia 52 0 7 54 -41 -19 2 1 3 --2288 32 Africa 3334 ONothnemr ocnoeutnartyri eisn ternational and regional organizations .... 15 297 335 81 -50 25 -188 133 651 -312 Foreign securities 35 Stocks, net purchases, or sales (-) -3,765 -1,057 -2,829 -663 -457 -101 129 -174' -550 -231 36 Foreign purchases 13,281 14,591 12,274 1,607 1,379 1,437 1,753 1,632' 1,580 1,664 37 Foreign sales 17,046 15,648 15,103 2,271 1,836 1,538 1,623 1,806' 2,130 1,895 38 Bonds, net purchases, or sales (-) -3,239 -4,052 -3,609 202 -950 -670 -1,035 -261' -518 -551 39 Foreign purchases 36,333 57,312 49,408 5,299 5,673 5,674 7,469 6,691' 7,144 6,034 40 Foreign sales 39,572 61,364 53,017 5,097 6,623 6,345 8,504 6,952 7,662 6,585 41 Net purchases, or sales (—), of stocks and bonds -7,004 -5,109 -6,438 -461 -1,407 -772 -906 -434' -1,068 -782 42 Foreign countries -6,559 -4,720 -6,721 -761 -1,217 -680 -1,070 -386' -1,298 -572 43 Europe -5,492 -8,632 -7,492 -96 -1,208 -798 -1,980 -680' -1,114 -898 4 4 5 4 L C a a t n in a d A a merica and Caribbean -1 1 , , 3 1 2 2 8 0 2,4 4 7 1 2 3 -1 1 , , 3 4 9 9 3 9 -4 -4 2 9 2 -68 7 1 2 3 3 6 81 9 2 9 -15 7 7 3 ' -7 1 8 5 3 0 1 3 7 6 8 46 Asia -855 1,345 538 -250 99 -13 202 353' 418 121 47 Africa 141 -107 4 -3 -26 -5 2 13 18 9 48 Other countries -144 -210 124 58 -21 -23 -8 14' 13 -19 49 Nonmonetary international and regional organizations -445 -389 283 300 -190 -91 164 -49 229 -210 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

A66 International Statistics • December 1985 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1985 1985 Country or area 11998833 11998844 Jan.- Aug. Feb. Mar. Apr. May June July Aug.P Transactions, net purchases or sales (-) during period1 1 Estimated total2 3,693 21,438 14,591 2,308 -4,401 -4,324 2,981 5,757' 4,786 -3,458 2 Foreign countries2 3,162 16,433 19,724 2,153 -4,756 2,249 4,249 5,757' 5,364 929 3 Europe2 6,226 11,070 4,259 -81 -1,435 1,818 544 1,025 975 881 4 Belgium-Luxembourg -431 289 434 18 0 80 101 17 21 92 5 Germany2 2,450 2,958 1,386 -129 -1,538 299 851 415 725 884 6 Netherlands 375 454 159 11 -201 -7 -73 10 148 342 7 Sweden 170 46 1,133 -10 1 30 157 775 119 -89 8 Switzerland2 -421 635 880 358 313 183 -133 143 -21 72 9 United Kingdom 1,966 5,223 -1,404 -342 293 188 -1,021 -96 -761 -84 10 Other Western Europe 2,118 1,466 1,671 12 -303 1,045 663 -239 743 -336 11 Eastern Europe 0 0 0 0 0 0 0 0 0 0 12 Canada 699 1,526 4 -242 38 334 114 6 7 -144 13 Latin America and Caribbean -212 1,413 2,734 735 -82 466 581 205' 156 524 14 Venezuela -124 14 no -11 2 10 -9 80 0 33 15 Other Latin America and Caribbean 60 528 985 71 65 177 462 123' -7 95 16 Netherlands Antilles -149 871 1,639 674 -149 278 127 2' 163 397 17 -3,535 2,377 12,524 1,726 -3,289 -331 2,943 4,516 4,307 -442 18 Japan 2,315 6,062 11,378 559 177 1,717 1,054 2,666 3,752 875 19 3 -67 94 1 1 13 57 10 10 -1 20 All other -17 114 110 14 11 -51 9 -6 -91 111 21 Nonmonetary international and regional organizations 535 5,006 -5,133 155 355 2,075 -1,267 -1' -577 -4,388 22 International 218 4,612 -4,822 504 338 1,792 -1,057 -105 -219 -4,400 23 Latin American regional 0 0 3 1 0 -3 5 0 0 0 MEMO 24 Foreign countries2 3,162 16,433 19,724 2,153 -4,756 2,249 4,249 5,757' 5,364 929 25 Official institutions 779 515 5,986 1,322 -5,278 -598 3,466 2,713 1,788 44 26 Other foreign2 2,382 15,918 13,736 830 521 2,846 782 3,045 3,575 886 Oil-exporting countries 27 Middle East3 -5,419 -6,277 -220 -372 554 -827 108 1,422 -1 -1,131 28 Africa4 -1 -101 0 0 0 0 0 0 0 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities with an original maturity of more than 1 year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria. notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes publicly issued to private foreign residents denominated in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Sept. 30, 1985 Rate on Sept. 30, 1985 Rate on Sept. 30, 1985 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 4.0 Aug. 1985 France1 9.25 Sept. 1985 Norway 8.0 June 1983 Belgium. 9.5 Sept. 1985 Germany, Fed. Rep. of 4.0 Aug. 1984 Switzerland 4.0 Mar. 1983 C B a ra n z a i d l a .. . . . 4 9 9 . .0 3 1 M Se a p r t . . 1 1 9 9 8 8 1 5 I J t a a p ly a n 1 5 5 . . 0 5 J O a c n t . . 1 1 9 9 8 8 5 3 V U e n n it e e z d u e K la i ngdom2. U.O May 1983 Denmark 7.0 Oct. 1983 Netherlands 5.0 Aug. 1985 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 1985 CCoouunnttrryy,, oorr ttyyppee 11998822 11998833 11998844 Mar. Apr. May June July Aug. Sept. I 12.24 9.57 10.75 9.32 8.74 8.13 7.60 7.89 8.02 8.14 7 12.21 10.06 9.91 13.52 12.70 12.61 12.38 12.01 11.42 11.49 14.38 9.48 11.29 11.42 10.15 9.77 9.58 9.33 9.16 9.10 4 8.81 5.73 5.96 6.36 5.99 5.87 5.66 5.31 4.75 4.64 5 5.04 4.11 4.35 5.77 5.35 5.15 5.14 5.07 4.64 4.59 6 8.26 5.58 6.08 7.14 6.82 6.90 6.58 6.29 5.80 5.72 7 14.61 12.44 11.66 10.71 10.49 10.15 10.18 9.97 9.79 9.57 8 19.99 18.95 17.08 15.82 15.15 14.91 15.00 14.37 14.36 13.95 9 14.10 10.51 11.41 10.75 10.09 9.35 8.96 8.95 9.50 9.33 1100 66..8844 6.49 6.32 6.30 6.26 6.26 6.30 6.29 6.30 6.31 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

A68 International Statistics • December 1985 3.28 FOREIGN EXCHANGE RATES Currency units per dollar 1985 CCoouunnttrryy//ccuurrrreennccyy 11998822 11998833 11998844 Apr. May June July Aug. Sept. 1 Australia/dollar1 101.65 90.14 87.937 65.84 67.68 66.51 69.95 70.70 68.% 2 Austria/schilling 17.060 17.968 20.005 21.717 21.868 21.532 20.446 19.632 19.949 3 Belgium/franc 45.780 51.121 57.749 62.283 62.572 61.719 58.626 56.543 57.395 4 Brazil/cruzeiro 179.22 573.27 1841.50 4511.58 5239.00 5786.00 6236.19 6714.00 7453.33 5 Canada/dollar 1.2344 1.2325 1.2953 1.3658 1.3756 1.3676 1.3526 1.3575 1.3703 6 China, P.R./yuan 1.8978 1.9809 2.3308 2.8480 2.8556 2.8693 2.8809 2.9093 2.9722 7 Denmark/krone 8.3443 9.1483 10.354 11.114 11.2244 10.9962 10.456 10.1459 10.2906 8 Finland/markka 4.8086 5.5636 6.0007 6.4652 6.4641 6.3660 6.0798 5.9464 6.0140 9 France/franc 6.5793 7.6203 8.7355 9.4427 9.4829 9.3414 8.8513 8.5323 8.6599 10 Germany/deutsche mark 2.428 2.5539 2.8454 3.0946 3.1093 3.0636 2.9083 2.7937 2.8381 11 Greece/drachma 66.872 87.895 112.73 134.86 137.239 136.00 131.75 131.75 136.74 12 Hong Kong/dollar 6.0697 7.2569 7.8188 7.7902 7.7766 7.7698 7.7527 7.7906 7.8043 13 India/rupee 9.4846 10.1040 11.348 12.400 12.5004 12.441 12.031 11.898 12.126 14 Ireland/pound1 142.05 124.81 108.64 101.17 100.71 102.19 107.79 111.43 109.55 15 Israel/shekel 24.407 55.865 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 Italy/lira 1354.00 1519.30 1756.10 1975.89 1984.45 1953.92 1900.33 1873.51 1903.42 17 Japan/yen 249.06 237.55 237.45 251.84 251.73 248.84 241.14 237.46 236.53 18 Malaysia/ringgit 2.3395 2.3204 2.3448 2.4922 2.4759 2.4685 2.46% 2.4644 2.4841 19 Mexico/peso 72.990 155.01 192.31 246.57 254.8182 294.22 346.70 339.78 373.02 20 Netherlands/guilder 2.6719 2.8543 3.2083 3.4981 3.5097 3.4535 3.2732 3.1429 3.1921 21 New Zealand/dollar1 75.101 66.790 57.837 45.520 45.197 45.949 49.826 53.564 53.285 22 Norway/krone 6.4567 7.3012 8.1596 8.9314 8.9442 8.8255 8.4338 8.2487 8.3337 23 Philippines/peso 8.5324 11.0940 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 Portugal/escudo 80.101 111.610 147.70 174.56 177.545 176.15 169.77 167.34 172.5 25 Singapore/dollar 2.1406 2.1136 2.1325 2.2199 2.2228 2.2291 2.2109 2.2191 2.2268 26 South Africa/rand1 92.297 89.85 69.534 51.50 50.18 50.54 51.07 43.07 39.49 27 South Korea/won 731.93 776.04 807.91 861.21 792.56 875.00 876.46 885.09 847.46 28 Spain/peseta 110.09 143.500 160.78 172.85 175.397 173.42 167.97 164.49 168.91 29 Sri Lanka/rupee 20.756 23.510 25.428 27.113 27.404 27.433 27.327 27.377 27.430 30 Sweden/krona 6.2838 7.6717 8.2706 8.9946 8.9895 8.8565 8.4703 8.3106 8.3907 31 Switzerland/franc 2.0327 2.1006 2.3500 2.5948 2.6150 2.5721 2.4060 2.2%2 2.3749 32 Taiwan/dollar n.a. n.a. 39.633 39.728 39.906 39.857 40.136 40.501 40.465 33 Thailand/baht 23.014 22.991 23.582 27.466 27.554 27.433 27.053 26.889 27.050 34 United Kingdom/pound1 174.80 151.59 133.66 123.77 124.83 128.08 138.07 138.40 136.42 35 Venezuela/bolivar 4.2981 10.6840 n.a. n.a. n.a. n.a. n.a. n.a. n.a. MEMO 36 United States/dollar2 116.57 125.34 138.19 149.56 149.92 147.71 140.94 137.55 139.14 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

A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when IPCs Individuals, partnerships, and corporations about half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 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 1985 All SPECIAL TABLES Published Irregulary, 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, 1984 April 1985 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1984 April 1985 A74 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1984 August 1985 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1985 November 1985 A76 Terms of lending at commercial banks, February 1985 June 1985 A70 Terms of lending at commercial banks, May 1985 August 1985 A70 Terms of lending at commercial banks, August 1985 November 1985 A70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH PRESTON MARTIN, Vice Chairman J. CHARLES PARTEE OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL POLICY JOSEPH R. COYNE, Assistant to the Board DONALD J. WINN, Assistant to the Board STEPHEN H. AXILROD, Staff Director 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 BOB STAHLY MOORE, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS MICHAEL BRADFIELD, General Counsel JAMES L. KICHLINE, Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel EDWARD C. ETTIN, Deputy Director RICHARD M. ASHTON, Associate General Counsel MICHAEL J. PRELL, Deputy Director OLIVER IRELAND, Associate General Counsel JOSEPH S. ZEISEL, Deputy Director RICKI TIGERT, Assistant General Counsel JARED J. ENZLER, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel DAVID E. LINDSEY, Associate Director ELEANOR J. STOCKWELL, Associate Director THOMAS D. SIMPSON, Deputy Associate Director OFFICE OF THE SECRETARY LAWRENCE SLIFMAN, Deputy Associate Director HELMUT F. WENDEL, Deputy Associate Director WILLIAM W. WILES, Secretary MARTHA BETHEA, Assistant Director BARBARA R. LOWREY, Associate Secretary ROBERT M. FISHER, Assistant Director JAMES MCAFEE, Associate Secretary DAVID B. HUMPHREY, Assistant Director SUSAN J. LEPPER, Assistant Director RICHARD D. PORTER, 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 DAVID H. HOWARD, Deputy Associate Director SUPERVISION AND REGULATION ROBERT F. GEMMILL, Staff Adviser PETER HOOPER III, Assistant Director WILLIAM TAYLOR, Director KAREN H. JOHNSON, Assistant Director THOMAS E. CIMENO, JR., Deputy Director1 RALPH W. SMITH, JR., Assistant Director FREDERICK R. DAHL, Associate Director DON E. KLINE, Associate Director FREDERICK M. STRUBLE, Associate Director HERBERT A. BIERN, Assistant Director ANTHONY 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 1. On loan from the Federal Reserve Bank of Boston. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 and Official Staff EMMETT J. RICE MARTHA R. SEGER 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., Adviser, Equal Employment CHARLES L. HAMPTON, Senior Technical Adviser Opportunity Programs, Federal Reserve System PORTIA W. THOMPSON, Equal Employment Opportunity Programs Officer DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF PERSONNEL CLYDE H. FARNSWORTH, JR., Director DAVID L. SHANNON, Director ELLIOTT C. MCENTEE, Associate Director JOHN R. WEIS, Assistant Director DAVID L. ROBINSON, Associate Director CHARLES W. WOOD, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director WALTER ALTHAUSEN, Assistant Director CHARLES W. BENNETT, Assistant Director OFFICE OF THE CONTROLLER ANNE M. DEBEER, Assistant Director JACK DENNIS, JR., Assistant Director GEORGE E. LIVINGSTON, Controller EARL G. HAMILTON, Assistant Director BRENT L. BOWEN, Assistant Controller WILLIAM E. PASCOE III, Assistant Director FLORENCE M. YOUNG, Adviser DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director WALTER W. KREIMANN, Associate Director GEORGE M. LOPEZ, Assistant Director OFFICE OF COMPUTING AND INFORMATION SERVICES ALLEN E. BEUTEL, Executive Director DIVISION OF COMPUTING SERVICES BRUCE M. BEARDSLEY, Director THOMAS C. JUDD, Assistant Director ELIZABETH B. RIGGS, Assistant Director ROBERT J. ZEMEL, Assistant Director DIVISION OF INFORMATION SERVICES WILLIAM R. JONES, Director STEPHEN R. MALPHRUS, Assistant Director RICHARD J. MANASSERI, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Bulletin • December 1985 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman E. GERALD CORRIGAN, Vice Chairman JOHN J. BALLES SILAS KEEHN EMMETT J. RICE ROBERT P. BLACK PRESTON MARTIN MARTHA R. SEGER ROBERT P. FORRESTAL J. CHARLES PARTEE 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 DAVID E. LINDSEY, Associate Economist MICHAEL BRADFIELD, General Counsel MICHAEL J. PRELL, Associate Economist JAMES H. OLTMAN, Deputy General Counsel KARL A. SCHELD, Associate Economist JAMES L. KICHLINE, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist (International) SHEILA L. TSCHINKEL, Associate Economist J. ALFRED BROADDUS, 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 LEWIS T. PRESTON, President PHILIP F. SEARLE, Vice President WILLIAM H. BOWEN AND N. BERNE HART, Directors ROBERT L. NEWELL, First District HAL C. KUEHL, Seventh District LEWIS T. PRESTON, Second District WILLIAM H. BOWEN, Eighth District GEORGE A. BUTLER, Third District LLOYD P. JOHNSON, 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

A73 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, Gainesville, Florida 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

A74 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, THE ECONOMETRICS OF PRICE DETERMINATION CONFER- Mail Stop 138, Board of Governors of the Federal Reserve ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 System, Washington, D.C. 20551. When a charge is indicat- pp. Cloth ed. $5.00 each; 10 or more to one address, ed, remittance should accompany request and be made $4.50 each. Paper ed. $4.00 each; 10 or more to one payable to the order of the Board of Governors of the Federal address, $3.60 each. Reserve System. Remittance from foreign residents should ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— be drawn on a U.S. bank. Stamps and coupons are not Regulation Z) Vol. I (Regular Transactions). 1969. 100 accepted. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address, $2.00 each. FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one TIONS. 1984. 120 pp. address, $1.50 each. ANNUAL REPORT. THE BANK HOLDING COMPANY MOVEMENT TO 1978: A FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to $2.00 each in the United States, its possessions, Canada, one address, $2.25 each. and Mexico; 10 or more of same issue to one address, FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 $18.00 per year or $1.75 each. Elsewhere, $24.00 per each; 10 or more to one address, $1.50 each. year or $2.50 each. INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint 10 or more to one address, $1.25 each. of Part I only) 1976. 682 pp. $5.00. PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. BANKING AND MONETARY STATISTICS. 1941-1970. 1976. $13.50 each. 1,168 pp. $15.00. NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- ANNUAL STATISTICAL DIGEST SERVE STAFF STUDY. 1981. 1974-78. 1980. 305 pp. $10.00 per copy. SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: 1980. 1981. 241 pp. $10.00 per copy. REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL 1981. 1982. 239 pp. $ 6.50 per copy. ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. 1982. 1983. 266 pp. $ 7.50 per copy. FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- 1983. 1984. 264 pp. $11.50 per copy. ed at least monthly. (Requests must be prepaid.) 1984. 1985. 254 pp. $12.50 per copy. Consumer and Community Affairs Handbook. $60.00 per FEDERAL RESERVE CHART BOOK. Issued four times a year in year. February, May, August, and November. Subscription Monetary Policy and Reserve Requirements Handbook. includes one issue of Historical Chart Book. $7.00 per $60.00 per year. year or $2.00 each in the United States, its possessions, Securities Credit Transactions Handbook. $60.00 per year. Canada, and Mexico. Elsewhere, $10.00 per year or Federal Reserve Regulatory Service. 3 vols. (Contains all $3.00 each. three Handbooks plus substantial additional material.) HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- $175.00 per year. tion to the Federal Reserve Chart Book includes one Rates for subscribers outside the United States are as issue. $1.25 each in the United States, its possessions, follows and include additional air mail costs: Canada, and Mexico; 10 or more to one address, $1.00 Federal Reserve Regulatory Service, $225.00 per year. each. Elsewhere, $1.50 each. Each Handbook, $75.00 per year. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. the United States, its possessions, Canada, and Mexico; WELCOME TO THE FEDERAL RESERVE. 10 or more of same issue to one address, $13.50 per year PROCESSING AN APPLICATION THROUGH THE FEDERAL REor $.35 each. Elsewhere, $20.00 per year or $.50 each. SERVE SYSTEM. August 1985. 30 pp. THE FEDERAL RESERVE ACT, as amended through August 31, THE MONETARY AUTHORITY OF THE FEDERAL RESERVE, 1985. with an appendix containing provisions of certain May 1984. (High School Level.) other statutes affecting the Federal Reserve System. 576 WRITING IN STYLE AT THE FEDERAL RESERVE. August 1984. pp. $7.00. 93 pp. $2.50 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT XIII AMERI- ERAL RESERVE SYSTEM. CAN-GERMAN BIENNIAL CONFERENCE, March 1985. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- REMARKS BY CHAIRMAN PAUL A. VOLCKER, TO THE EMPIRE NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Each CLUB OF CANADA AND THE CANADIAN CLUB OF TOvolume, $3.00; 10 or more to one address, $2.50 each. RONTO, October 28, 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 CONSUMER EDUCATION PAMPHLETS 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- Short pamphlets suitable for classroom use. Multiple copies TERNATIONAL TRADE AND OTHER ECONOMIC VARIAavailable without charge. BLES: A REVIEW OF THE LITERATURE, by Victoria S. Farrell with Dean A. DeRosa and T. Ashby McCown. January 1984. Out of print. Alice in Debitland 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- Consumer Handbook on Adjustable Rate Mortgages DEUTSCHE MARK INTERVENTION, by Laurence R. Consumer Handbook to Credit Protection Laws Jacobson. October 1983. 8 pp. The Equal Credit Opportunity Act and . . . Credit Rights in 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- Housing TWEEN EXCHANGE RATES AND INTERVENTION: A The Equal Credit Opportunity Act and . . . Doctors, Law- REVIEW OF THE TECHNIQUES AND LITERATURE, by yers, Small Retailers, and Others Who May Provide Inci- Kenneth Rogoff. October 1983. 15 pp. dental Credit 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- Fair Credit Billing VENTION, AND INTEREST RATES: AN EMPIRICAL IN- Federal Reserve Glossary VESTIGATION, by Bonnie E. Loopesko. November Guide to Federal Reserve Regulations 1983. Out of print. How to File A Consumer Credit Complaint 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET If You Borrow To Buy Stock INTERVENTION: A REVIEW OF THE LITERATURE, by If You Use A Credit Card Ralph W. Tryon. October 1983. 14 pp. Instructional Materials of the Federal Reserve System 135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET Series on the Structure of the Federal Reserve System INTERVENTION: APPLICATIONS TO CANADA, GERMA- The Board of Governors of the Federal Reserve System NY, AND JAPAN, by Deborah J. Danker, Richard A. The Federal Open Market Committee Haas, Dale W. Henderson, Steven A. Symansky, and Federal Reserve Bank Board of Directors Ralph W. Tryon. April 1985. 27 pp. Federal Reserve Banks 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO- Monetary Control Act of 1980 MY, by Darrell Cohen and Peter B. Clark. January Organization and Advisory Committees 1984. 16 pp. Out of print. Truth in Leasing 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF U.S. Currency FINANCIAL DEREGULATION, INTERSTATE BANKING, What Truth in Lending Means to You AND FINANCIAL SUPERMARKETS, by Stephen A. Rhoades. February 1984. Out of print. 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- LINES, AND THE LIMITS OF CONCENTRATION IN LO- CAL BANKING MARKETS, by James Burke. June 1984. 14 pp. STAFF STUDIES.- Summaries Only Printed in the 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN Bulletin THE UNITED STATES, by Thomas D. Simpson and Studies and papers on economic and financial subjects that Patrick M. Parkinson. August 1984. 20 pp. are of general interest. Requests to obtain single copies of 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF the full text or to be added to the mailing list for the series THE LITERATURE, by John D. Wolken. November may be sent to Publications Services. 1984. 38 pp. 141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAY- MENT COSTS, by William Dudley. November 1984. Staff Studies 115-125 are out of print. 15 pp. 142. MERGERS AND ACQUISITIONS BY COMMERCIAL BANKS, 1960-83, by Stephen A. Rhoades. December 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- 1984. 30 pp. DENCE ON COMPETITION AND PERFORMANCE IN 143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF BANKING MARKETS, by Timothy J. Curry and John T. THE ELECTRONIC FUND TRANSFER ACT: RECENT Rose. Jan. 1982. 9 pp. SURVEY EVIDENCE, by Frederick J. Schroeder. April 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- 1985. 23 pp. KET INTERVENTION, by Donald B. Adams and Dale 144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON- W. Henderson. August 1983. 5 pp. SUMER CREDIT REGULATIONS: THE TRUTH IN LEND- 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- ING AND EQUAL CREDIT OPPORTUNITY LAWS, by VENTION: JANUARY-MARCH 1975, by Margaret L. Gregory E. Elliehausen and Robert D. Kurtz. May Greene. August 1984. 16 pp. 1985. 10 pp. 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 145. SERVICE CHARGES AS A SOURCE OF BANK INCOME VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- AND THEIR IMPACT ON CONSUMERS, by Glenn B. garet L. Greene. October 1984. 40 pp. Canner and Robert D. Kurtz. August 1985. 31 pp. 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF VENTION: OCTOBER 1980-OcTOBER 1981, by Margaret BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, L. Greene. August 1984. 36 pp. by Thomas F. Brady. November 1985. 25 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 REPRINTS OF BULLETIN ARTICLES Bank Lending to Developing Countries. 10/84. Most of the articles reprinted do not exceed 12 pages. Survey of Consumer Finances, 1983: A Second Report. 12/84. Union Settlements and Aggregate Wage Behavior in the The Commercial Paper Market since the Mid-Seventies. 6/82. 1980s. 12/84. Foreign Experience with Targets for Money Growth. 10/83. The Thrift Industry in Transition. 3/85. Intervention in Foreign Exchange Markets: A Summary of U.S. International Transactions in 1984. 5/85. Ten Staff Studies. 11/83. A Revision of the Index of Industrial Production. 7/85. A Financial Perspective on Agriculture. 1/84. Financial Innovation and Deregulation in Foreign Industrial Survey of Consumer Finances, 1983. 9/84. Countries. 10/85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM1 Approximate Date or period Weekly Releases release days to which data refer Aggregate Reserves of Depository Institutions and the Monetary Thursday Week ended previous Base. H.3 (502) [1.20] Wednesday Actions of the Board: Applications and Reports Received. H.2 Friday Week ended previous Saturday (501) Assets and Liabilities of Insured Domestically Chartered and Monday Wednesday, 3 weeks earlier Foreign Related Banking Institutions. H.8 (510) [1.25] Changes in State Member Banks. K.3 (615) Tuesday Week ended previous Saturday Factors Affecting Reserves of Depository Institutions and Thursday Week ended previous Condition Statement of Federal Reserve Banks. H.4.1 (503) Wednesday [1.11] Foreign Exchange Rates. H. 10 (512) [3.28] Monday Week ended previous Friday Money Stock, Liquid Assets, and Debt Measures. H.6 (508) [1.21] Thursday Week ended Wednesday of previous week Selected Borrowings in Immediately Available Funds of Large Wednesday Week ended Thursday of Member Banks. H.5 (507) [1.13] previous week Selected Interest Rates. H. 15 (519) [ 1.35] Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Friday Wednesday, 1 week earlier Banks and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.28, 1.29, 1.30] Monthly Releases Capacity Utilization: Manufacturing, Mining, Utilities and Midmonth Previous month Industrial Materials. G.3 (402) [2.12] Changes in Status of Banks and Branches. G.4.5 (404) 1st of month Previous month Commercial and Industrial Loan Commitments at Selected Large 2nd week of month 2nd month previous Commercial Banks. G.21 (423) Consumer Installment Credit. G. 19 (421) [1.55, 1.56] Midmonth 2nd month previous Debits and Deposit Turnover at Commercial Banks. G.6 (406) 12th of month Previous month [1.22] Finance Companies. G.20 (422) [1.51, 1.52] 5th working day of 2nd month previous month Foreign Exchange Rates. G.5 (405) [3.28] 1st of month Previous month Industrial Production. G.12.3 (414) [2.13] Midmonth Previous month Loans and Securities at all Commercial Banks. G.7 (407) [1.23] 3rd week of month Previous month Major Nondeposit Funds of Commercial Banks. G.10 (411) [1.24] 3rd week of month Previous month Maturity Distribution of Outstanding Negotiable Time Certificates 3rd week of month Last Wednesday of previous of Deposit at Large Commercial Banks. G.9 (410) month Monthly Report of Assets and Liabilities of International Banking 2nd week of month Wednesday, 2 weeks earlier Facilities. G.14 (416) Research Library—Recent Acquisitions. G. 15 (417) 1st of month Previous month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The BULLETIN table that reports these data is designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 . proximate Date or period Monthly Releases—Continued release days to which aata refer Selected Interest Rates. G.13 (415) [1.35] 3rd working day of Previous month month Quarterly Releases Agricultural Finance Databook. E.15 (125) End of March, January, April, July, and June, September, October and December Country Exposure Lending Survey. E. 16 (126) January, April, Previous 3 months July, and October Domestic Offices, Commercial Bank Assets and Liabilities March, June, Previous 6 months Consolidated Report of Condition. E.3.4 (113) [1.26, 1.28] September, and December Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) 23rd of February, Previous quarter [1.58, 1.59] May, August, and November Flow of Funds Summary Statistics Z.l. (788) [1.57, 1.58] 15th of February, Previous quarter May, August, and November Geographical Distribution of Assets and Liabilities of Major 15th of March, Previous quarter Foreign Branches of U.S. Banks. E.ll (121) June, September, and December Survey of Terms of Bank Lending. E.2 (111) [1.34] Midmonth of February, May, August, and March, June, November September, and December List of OTC Margin Stocks. E.7 (117) January, April, February, May, August, and July, and November October Annual Releases Aggregate Summaries of Annual Surveys of Securities Credit February End of previous June Extension. C.2 (101) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Index to Statistical Tables References are to pages A3-A68 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 Turnover, 15 Assets and liabilities (See also Foreigners) Depository institutions Banks, by classes, 18-20 Reserve requirements, 7 Domestic finance companies, 37 Reserves and related items, 3, 4, 5, 12 Federal Reserve Banks, 10 Deposits (See also specific types) Financial institutions, 26 Banks, by classes, 3, 18-20, 21 Foreign banks, U.S. branches and agencies, 21 Federal Reserve Banks, 4, 10 Nonfinancial corporations, 36 Turnover, 15 Automobiles Discount rates at Reserve Banks and at foreign central Consumer installment credit, 40, 41 banks and foreign countries (See Interest rates) Production, 47, 48 Discounts and advances by Reserve Banks (See Loans) Dividends, corporate, 35 BANKERS acceptances, 9, 23, 24 Bankers balances, 18-20 (See also Foreigners) EMPLOYMENT, 45 Bonds (See also U.S. government securities) Eurodollars, 24 New issues, 34 Rates, 24 Branch banks, 21, 55 FARM mortgage loans, 39 Business activity, nonfinancial, 44 Federal agency obligations, 4, 9, 10, 11, 31, 32 Business expenditures on new plant and equipment, 36 Federal credit agencies, 33 Business loans (See Commercial and industrial loans) Federal finance Debt subject to statutory limitation, and types and CAPACITY utilization, 46 ownership of gross debt, 30 Capital accounts Receipts and outlays, 28, 29 Banks, by classes, 18 Treasury financing of surplus, or deficit, 28 Federal Reserve Banks, 10 Treasury operating balance, 28 Central banks, discount rates, 67 Federal Financing Bank, 28, 33 Certificates of deposit, 24 Federal funds, 5, 17, 19, 20, 21, 24, 28 Commercial and industrial loans Federal Home Loan Banks, 33 Commercial banks, 16, 19 Federal Home Loan Mortgage Corporation, 33, 38, 39 Weekly reporting banks, 19-21 Federal Housing Administration, 33, 38, 39 Commercial banks Federal Land Banks, 39 Assets and liabilities, 18-20 Federal National Mortgage Association, 33, 38, 39 Commercial and industrial loans, 16, 18, 19, 20, 21 Federal Reserve Banks Consumer loans held, by type, and terms, 40, 41 Condition statement, 10 Loans sold outright, 19 Discount rates (See Interest rates) Nondeposit funds, 17 U.S. government securities held, 4, 10, 11, 30 Real estate mortgages held, by holder and property, 39 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 23, 24, 37 Federal Savings and Loan Insurance Corporation-insured Condition statements (See Assets and liabilities) institutions, 26 Construction, 44, 49 Federally sponsored credit agencies, 33 Consumer installment credit, 40, 41 Finance companies Consumer prices, 44, 50 Assets and liabilities, 37 Consumption expenditures, 51, 52 Business credit, 37 Corporations Loans, 40, 41 Nonfinancial, assets and liabilities, 36 Paper, 23, 24 Profits and their distribution, 35 Financial institutions Security issues, 34, 65 Loans to, 19, 20, 21 Cost of living (See Consumer prices) Selected assets and liabilities, 26 Credit unions, 26, 40 (See also Thrift institutions) Float, 4 Currency and coin, 18 Flow of funds, 42, 43 Currency in circulation, 4, 13 Foreign banks, assets and liabilities of U.S. branches and Customer credit, stock market, 25 agencies, 21 Foreign currency operations, 10 DEBITS to deposit accounts, 15 Foreign deposits in U.S. banks, 4, 10, 19, 20 Debt (See specific types of debt or securities) Foreign exchange rates, 68 Demand deposits Foreign trade, 54 Banks, by classes, 18-21 Foreigners Ownership by individuals, partnerships, and Claims on, 55, 57, 60, 61, 62, 64 corporations, 22 Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 GOLD REAL estate loans Certificate account, 10 Banks, by classes, 16, 19, 20, 39 Stock, 4, 54 Financial institutions, 26 Government National Mortgage Association, 33, 38, 39 Terms, yields, and activity, 38 Gross national product, 51 Type of holder and property mortgaged, 39 Repurchase agreements, 5, 17, 19, 20, 21 HOUSING, new and existing units, 49 Reserve requirements, 7 Reserves INCOME, personal and national, 44, 51, 52 Commercial banks, 18 Industrial production, 44, 47 Depository institutions, 3, 4, 5, 12 Installment loans, 40, 41 Federal Reserve Banks, 10 Insurance companies, 26, 30, 39 U.S. reserve assets, 54 Interest rates Residential mortgage loans, 38 Bonds, 24 Retail credit and retail sales, 40, 41, 44 Consumer installment credit, 41 Federal Reserve Banks, 6 SAVING Foreign central banks and foreign countries, 67 Flow of funds, 42, 43 Money and capital markets, 24 National income accounts, 51 Mortgages, 38 Savings and loan associations, 8, 26, 39, 40, 42 (See also Prime rate, 23 Thrift institutions) Time and savings deposits, 8 Savings banks, 26 International capital transactions of United States, 53-67 Savings deposits (See Time and savings deposits) International organizations, 57, 58, 60, 63, 64 Securities (See specific types) Inventories, 51 Federal and federally sponsored credit agencies, 33 Investment companies, issues and assets, 35 Foreign transactions, 65 Investments (See also specific types) New issues, 34 Banks, by classes, 18, 19, 20, 21, 26 Prices, 25 Commercial banks, 3, 16, 18-20, 39 Special drawing rights, 4, 10, 53, 54 Federal Reserve Banks, 10, 11 State and local governments Financial institutions, 26, 39 Deposits, 19, 20 Holdings of U.S. government securities, 30 LABOR force, 45 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities issued by, 19, 20, 26 Loans (See also specific types) Rates on securities, 24 Banks, by classes, 18-20 Stock market, selected statistics, 25 Commercial banks, 3, 16, 18-20 Stocks (See also Securities) Federal Reserve Banks, 4, 5, 6, 10, 11 New issues, 34 Financial institutions, 26, 39 Prices, 25 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 MANUFACTURING TAX receipts, federal, 29 Capacity utilization, 46 Thrift institutions, 3 (See also Credit unions, Mutual Production, 46, 48 savings banks, and Savings and loan associations) Margin requirements, 25 Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21 Member banks (See also Depository institutions) Trade, foreign, 54 Federal funds and repurchase agreements, 5 Treasury cash, Treasury currency, 4 Reserve requirements, 7 Treasury deposits, 4, 10, 28 Mining production, 48 Treasury operating balance, 28 Mobile homes shipped, 49 UNEMPLOYMENT, 45 Monetary and credit aggregates, 3, 12 Money and capital market rates, 24 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, 35 U.S. government securities Mutual savings banks, 8, 26, 39, 40 (See also Thrift Bank holdings, 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, 66 National income, 51 Open market transactions, 9 Outstanding, by type and holder, 26, 30 OPEN market transactions, 9 Rates, 24 U.S. international transactions, 53-67 Utilities, production, 48 PERSONAL income, 52 Prices Consumer and producer, 44, 50 VETERANS Administration, 38, 39 Stock market, 25 Prime rate, 23 WEEKLY reporting banks, 19-21 Producer prices, 44, 50 Wholesale (producer) prices, 44, 50 Production, 44, 47 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Index to Volume 71 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Issue Text Other ("A" pages) Issue Text Other ("A" pages) Index to Index to Total tables Total tables January ... 1-74 1-80 77-78 July 487-600 1-80 77-78 February . 75-136 1-80 77-78 August.... 601-670 1-90 87-88 March 137-186 1-78 75-76 September 671-742 1-80 77-78 April 187-276 1-88 85-86 October... 743-822 1-80 77-78 May 277-372 1-80 77-78 November 823-912 1-90 87-88 June 373-486 1-88 85-86 December 913-980 1-98 79-80 The "A" pages referred to in this index are in the Decem- For special tables published during 1985, see list on p. A69 ber issue. of this issue. Pages Pages ADJUSTABLE-RATE mortgages (ARMs) Articles—Continued More information for consumers, proposed amend- Loan pricing and business lending at commercial ment of Regulation Z 534, 707 banks, changes 1 Pamphlet, joint publication of Federal Reserve and Monetary policy, U.S., in recent years, paper .. 14,91 Federal Home Loan Bank Board 159 Monetary policy reports to Congress (See Statements Agriculture to Congress) Banking experience in 1984 and status of farm sector, Staff studies (See Staff studies) statement 306 Statements and reports to Congress (See Statements Banks in agricultural communities, statements .. 435, 614 to Congress) Current difficulties experienced by banks in agricul- Thrift industry in transition 137 tural communities, statement 435 Ashton, Richard M., appointed Associate General Financial experience of farm sector, review, state- Counsel for Litigation 443 ment 941 August, James D., article 389 Legislation, statement 504 Automated clearinghouses Seasonal credit program, modification 322 Collection of data on transactions, proposed 534 Albright, Robert L., appointed director, Charlotte Fees for services to, revised schedule 29 Branch 361 Information required from, to receive net settlement Alexis, Marcus, appointed Class C director, Chicago 364 services 778 Allison, Theodore E., statements 422, 613 Axilrod, Stephen H., paper 14, 91 Anderson, Dale W., appointed director, Helena Branch 367 Anderson, Marcia S., appointed director, Helena BANK Definition Act, statement 424 Branch 367 Bank holding companies (For orders issued to individual Annual Statistical Digest, 1984, publication 882 companies under the Bank Holding Company Act, Apelgren, Robert D., appointed director, Miami Branch 363 see Bank Holding Company Act of 1956) Articles Applications Adjustable-rate financing in mortgage and consumer To acquire nonbank banks, conditional approval credit markets 823 and subsequent suspension 28, 323 Bank holding companies in 1984, financial develop- To engage in execution and clearance of futures ments 924 contracts and options on futures contracts on Capacity utilization, revised Federal Reserve rates . 754 stock indexes, request for comment 91 Consumer debt, growth 389 To engage in investment advisory and securities Consumer financial services industry, regulatory re- brokerage services, request for comment 956 sponses to changes 75 To engage in underwriting and dealing in certain Economics in policy and practice, from address 601 bonds and securities, request for comment 534 Equal credit regulation, revision 913 Capital adequacy guidelines, revisions . 440, 445-53, 456 Federally sponsored credit agencies, overview 373 Financial condition, statement 877 Financial innovation and deregulation in foreign in- Financial developments in 1984, article 924 dustrial countries 743 List, annual 32 Foreign exchange operations of Treasury and Federal Nonbank affiliates, proposed action on operations .. 162 Reserve (See Foreign exchange operations) Out-of-state, statement on Board's views concerning Home-seller finance, 1983, survey 767 state law authorizing such companies to acquire Industrial production index, revision 487 state-chartered banks and to engage in nonbanking Insured commercial banks, profitability in 1984 836 activities 874 International transactions of United States in 1984 .. 277 Performance report, publication 441 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • December 1985 Pages Pages Bank holding companies—Continued Bank Holding Company Act—Continued Real estate investment activities, proposed action .. 162 Orders issued—Cont. Registration period for certain companies, extension . 90 Bank 2000, Inc 666 Regulation Y (See Regulations) Bankers Trust New York Corporation .. 51, 111, 736, Reporting requirements, extension of comment peri- 801 od on proposed revision 779 Banking Corporation of Georgia 181 Supervision, Board policies 955 Banking Group, Ltd 181 Bank Holding Company Act of 1956 Bankmanagers Corp 271 Activities closely related to banking, Citicorp applica- BankVermont Corporation 456 tion 225 Bankvest, Inc 975 Extension of registration for certain bank holding BanPonce Corporation, Hato Rey, Puerto Rico .. 574 companies 91 Banterra Corp 351 Orders issued under Barclays Bank International Limited, London, ABC Holding Company 592 England 113 Adams Bankcorp, Inc 592 Barclays Bank PLC, London, England .. 72, 113, 978 Adino Company 666 Barclays Corporation 133 Alamo Corporation of Texas 133 Barclays PLC, London, England 737, 978 Albert City Bankshares, Inc 128 Barclays U.S. Holdings, Inc. 741 Alex Brown Financial Group 181 Barclays USA Inc 133 Alliance Bancorp 598 Barnett Banks of Florida, Inc 351, 648, 736 Allied Bancshares, Inc 67, 128, 592 Bay Bancshares, Inc 813 Allied Bankshares, Inc 181, 480, 974 BBA, Inc 480 Amcorp Financial, Inc 737 B-BancCorp 472 American Bancorp, Inc 812 Bellcorp, Inc 979 American Bancorp of Edmond, Inc 908 Belle Plaine BanCorporation, Inc 666 American Bank Holding Corporation 592 Bement Bancshares, Inc 351 American Bankshares, Inc 350 Benson Investment Company 593 American Bankshares, Ltd 480 Benton Financial Corporation 68 American Fletcher Corporation 974 Beverly Bancorporation, Inc 181 American Heritage Bancorp, Inc 133 BFW Financial Corporation 737 American National Bancshares, Inc 736, 974 Big Coal River Bancorp, Inc 813 American National Bancshares of Westlink, Blue Water Bancshares, Inc 666 Inc 480 BMC Bankcorp, Inc 128 American Security Bancshares 128 BNH Bancshares, Inc 593 AmeriCorp, Inc 128 Boatmen's Bancshares, Inc 122 Americorp Financial, Inc 957 BoRC Financial Corporation 737 Ameritrust, Inc 812 Bosque Bancshares, Inc 813 AmeriWest Bancor, Inc 592 Bosshard Banco, Ltd 181 ANB Corporation 350 Brazos Valley Bancshares, Inc 271 Anchor Bancorp, Inc 67 Brookside Bancshares, Inc 271 Andover Banc Shares, Inc 350 Brunswick Bancorp 975 Angola State Bancorp 592 BSB Bancorp 68 Arcadia Bancshares, Inc 480 BSJ Bancshares, Inc 181 Arlington Bank Corporation 67 Buchanan County Bancshares, Inc 666 Arlington Commonwealth Corporation 974 Butler County Financial Corp., Inc 812 ARSEBCO, Inc 974 BW Bancshares, Inc 68 Ashland Bankshares, Inc 128 Byron Bancshares, Inc 669 Associated Banc-Corp 573 C&P Bank Corporation of Pensacola 594 Associated Bank Shares Corporation 974 California Commercial Bancshares 598 Athens Bancorp, Inc 181 Calumet Bancorporation 480 Atlantic Bancorporation 275, 354, 592 Cameron Bancshares, Inc 908 Auburn Financial Corp 128 Campbell Bancshares 128 Augusta Bank and Trust Company 911 Canandaigua National Corporation 593 Aurora Bancorporation 67 Canebrake Bancshares, Inc 975 Austin Colony, Inc 67 Capital Bancorporation, Inc 271 Baltimore Bancorp 901 Capital City Bank Group, Inc 68 Banc One Corporation 669 Capital Peoples Bancshares, Inc 593 Bancenter One Group, Inc 480 CapitalBank Corporation 163, 813 Banco del Pacifico, Guayaquil, Ecuador 632 Caraway Bancshares, Inc 128 Banco del Pacifico (Panama), S.A., Panama, Pana- Caribank Corporation 181 ma 632 Carlisle Bancorp, Inc 68 Bancorp Hawaii, Inc 168 Carlisle Bancshares, Inc 351 BancTenn Corp 737 Carlsbad Bancorporation, Inc 813 Bank Corporation of Georgia 181 Carroll Financial Corporation 737 Bank of Boston Corporation 55 Cascade Bancorporation, Inc 737 Bank of Dardanelle Bankshares, Inc 666 CaSH Holding Company, Inc 182 Bank of Montreal, Montreal, Quebec, Canada ... 970 Cattail Bancshares, Inc 593 Bank of New Hampshire Corporation 350 Cayman Investment Company (Delta), George Bank of New Mexico Holding Company 350 Town, Grand Cayman 958 Bank of New York 271 Cayman Investment Company (Omega), George Bank of New York Company, Inc 113 Town, Grand Cayman 959 Bank of Virginia Company 40, 271 CB&T Bancshares, Inc 128, 182, 337, Bank Shares Incorporated 974 484, 593, 975 Bank South Corporation 592 CB&T Capital Corporation 593 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 71 A83 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. CB&T Financial Corp 68 Columbia Bancshares, Inc 182 CBC Bancorp, Ltd 271 Columbian Corporation 338 CBS Bancshares, Inc 182 Comban Shares, Inc 813 Centennial Bancshares, Inc 593 Comerica Incorporated 129, 182 Centra Financial Inc 908 Commerce & Energy Bank Holding Company ... 974 Central Arkansas Bancshares, Inc 813 Commerce Bancorp, Inc 182 Central Banc Holding, Inc 129 Commerce Bancshares, Inc 813,911 Central Banc System, Inc 666 Commerce Bancshares of Roswell, Inc 737 Central Bancorporation, Inc 100 Commerce Group, Inc 476 Central Corporation 813 Commerce National Corporation 481 Central Fidelity Banks, Inc 908 Commerce Union Corporation 715 Central Jersey Bancorp 480 CommerceAmerica Corp 975 Central National Bancshares, Inc 163 Commercial Bancshares, Inc 598, 908, 975 Central of Kansas, Inc 133 Commercial BancShares, Inc 68 Central Wisconsin Bankshares, Inc 895 Commercial Bancshares of Roanoke, Inc 271 Century Bancshares, Inc 908 Commercial Bank Investment Company 271 C.F.C. Bancorp, Inc 593 Commonwealth Bancshares Corp 737 Chalfen Bankshares, Inc 72 Commonwealth Trust Bancorp, Inc 272 Chapman Bancshares, Inc 593 Community Bancorp, Inc 594, 975 Chariton County Bancshares, Inc 68 Community Bancorporation, Inc 129 Charleston Associates 182 Community Bancshares, Inc 594, 667 Charter Holding Company, Inc 666 Community Bank System, Inc 978 Charter 17 Bancorp, Inc 182, 666 Community Bankers, Inc 594 Chase County Bankshares, Inc 129, 911 Community Banks, Inc 975 Chase Manhattan Corporation .... 249, 462, 633, 650, Community Bankshares Incorporated 68 905, 960 Community Financial Corp 975 Community Financial Corporation 737 Chase Manhattan National Corporation 905 Community Holding Company 272, 975 Chemical Financial Corporation 975 Community Independent Bank, Inc 481 Chemical New York Corporation 113, 593 Community State Banking Corporation 594 Chemung Financial Corporation 480 Comp One Corporation 68 Chicago Commerce Bancorporation 480 Comprehensive Investment Company 351, 354 Chillicothe State Bancorp, Inc 129 Congress National Bancshares, Inc 68 Cidadel Bankshares, Inc 911 Cook Investment, Inc 477 Citadel Bancorporation 480 Consolidated Bancorporation, Inc 68 Citadel Bancshares, Inc 129 Citibancshares, Inc 351 Coppell Financial Corporation 68 Citicorp 58, 101, 247, 737, 789, 803 Corn Belt Bancorporation 667 Citicorp Holdings, Inc 129 Corpus Christi Bancshares, Inc 129 Citizens and Southern Georgia Corporation 728 Cortland Bancorp 68 Citizens Bancorp, Inc 182 Cosmos Bancorporation, Inc 737 Citizens Bancorp of Lawrence 813 Countricorp 667 Citizens Bancorporation of New Ulm 737 Country Club Bancorporation, Inc 975 Citizens Bancshares, Inc 351, 593 County Bancorporation, Inc 272 Citizens Bancshares of Batesville, Inc 68 Crockett Bancshares, Inc 69 Citizens Bancshares of Loyal, Inc 975 Crockett County Bancshares, Inc 792 Citizens Corporation 129, 667 Cromwell Financial Corp 351 Citizens Development Company 271 Crosby Bancshares, Inc 594, 908 Citizens Fidelity Corporation 182, 908 Cross County Bancshares, Inc 129 Citizens Financial Corporation 584 Cross Plains Bankshares, Inc 594 Citizens Financial Group, Inc 473 Crown Bancshares, Inc 813 Citizens Financial Services, Inc 593 Cynthiana Bancorporation 594 Citizens State Bancorp 975 Dahlonega Bancorp, Inc 351 Citizens State Bank at Mohall Employee Stock Darmen Financial of Wisconsin, Inc 737 Ownership Plan 134, 813 Dawson County Bancshares, Inc 129 Citizens Trust Bancorp, Inc 908 Delaware National Bankshares Corp 272 Citizens Western Corporation 129 Delta North Bankcorp, Inc 959 City Banc Corporation 667 Delta South Bankcorp, Inc 958 City Bancorp Inc 480 Denmark Bancshares, Inc 598 City Bank of Tampa 975 Dentel Bancorporation 594 City Financial Corp. of Tampa 975 Deposit Guaranty Corp 807 City Holding Company 575, 908 Des Plaines National Bancorp, Inc 182 City National Corporation 129 DeSoto Bancshares, Inc 594 Claiborne Holding Company, Inc 908 Devon Bancorp, Inc 129 Clintonville Bancshares, Inc 68 DeWitt First Bancshares Corporation 667 CNB Corporation 593, 813 Diboll State Bancshares, Inc 813 CoBank Financial Corporation 128 DMB Corporation, Inc 813 Coble Bankshares, Inc 813 DN Bankshares Inc 908 Colonial BancGroup, Inc 597 Dooly Bancshares, Inc 182 Colonial Bancorp 182 Downey Bancorp 182 Colonial Bancorporation, Inc 480 D.P. Financial Corporation 182 Colorado National Bankshares, Inc 68 Dunlap Iowa Holding Company 484 Colt Investments, Inc 355, 813 DuPage Financial Corporation 667 Columbia Bancorp, Inc 182, 271 East Ridge Bancshares, Inc 129 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • December 1985 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Easton Bancshares, Incorporation 667 First Bankshares of St. Martin, Ltd 667 East-Tex Bancorp, Inc 129 First Banquers Holding Company 130 Edna Bancshares, Inc 737 First Beemer Corporation 130 Egypt Bancorp, Inc 351 First Berne Financial Corporation 352 Elkhart Financial Company 129 First Bottineau, Inc 130 Elkhorn Bankshares Corporation 909 First Central Bancorp, Inc 716 Ellinwood Bankshares, Inc 975 First City Bancorporation of Texas, Inc 716 Elm Marine Banc-Shares, Inc 272 First City Bancshares, Inc 352 Elston Corporation 737 First Clay Corp 272 Emmetsburg Bank Shares, Inc 272 First Colebrook Bancorp, Inc 272 Ennis Bancshares, Inc 182 1st Columbia Corp 909 Equimark Purchasing Partners 577 First Commerce Bancorp, Inc 976 Equitable Bankshares, Inc 129 First Commerce Bancshares, Inc 818 Equitable Company of Texas 797 First Commerce Corporation 586 Evangeline Bancshares, Inc 351 First Commercial Bancshares, Inc 814, 818 Evans Bancshares, Inc 130 First Commercial Bankshares 637 Evergreen Bancshares, Inc 737 First Commonwealth Financial Corporation 738 Exchange Bancshares, Inc 468 First Community Financial Corporation 352 Executive Bancshares, Inc 130 First Cordell Banco, Inc 484 F. and M. Bancorp, of Tomah, Inc 69 First Corinth Corp 738 F & M Bancorporation, Inc 351 First Crockett Bancshares, Inc 738 F & M Bancshares, Inc 909 First Dalhart Bancshares, Inc 909 F & M Merger Corporation 909 First Detroit Corporation 814 F&M National Corporation 975 First Dubuque Corp 481 F M Fincorp 728 First Eastern Corp 741 Fairfax Bancshares, Inc 481 First Evergreen Corporation 69 FAM Financial, Inc 484 First Farmers Corporation of Madisonville 69 Farmers & Merchants Bancorp 813 First Fidelity Bancorporation 738 Farmers & Merchants Bancorp, Inc 737 First Fontanelle Bancorporation 130 Farmers & Merchants Bancshares, Inc 738 First Franklin Bancshares, Inc 272 Farmers and Merchants Financial Services, Inc. . 182 First Geneva Banqueshares, Inc 976 Farmers Banc, Inc 351 First Golden Bancorporation 978 Farmers Bancapital Corporation 69 First Guthrie Bancshares, Inc 481 Fanners Bancshares, Inc 481 First Holding Company 479 Farmers Capital Bank Corporation 182, 594 First Houston Bancshares, Inc 69 Farmers Deposit Bancorp 182 First Huntsville Corporation 976 Farmers National Bancorp 272 First Independent Investment Group, Inc 595 Farmers State Bancorp 975 First Indiana Bancorp 976 FBC Bancshares, Inc 351 First Indiana Bancshares, Inc 909 FBOP Corporation 181 First Interstate Bancorp 467 FCN Banc Corp 594 First Interstate Corporation of Alaska 592 Fed Gold, Inc 130 First Interstate Corporation of Wisconsin 814 Fidelity Bancorp, Inc 272 First Jersey National Corporation 183, 638, 976 Fifth Third Bancorp 736 First Kentucky National Corporation 183, 814 Financial Bankshares, Inc 481 First Leesport Bancorp, Inc 909 Financial Consortium of America 974 First Lehigh Corporation 595 Financial Dominion of Kentucky, Inc 738 First Metropolitan Financial Corporation 484 Financial Holdings, Inc 738 First Midwest Bancorp, Inc 41 Financial Management Services of Jefferson, Inc. 738 First Midwest Bancshares, Inc 183 Financial Services of the Rockies, Inc 130 First National Bancor, Inc 481 FINB Holding Corp 272 First National Bancorp 738 Finest Financial Corp 976 First National Bancorp, Inc 183 FIRSNABANCO, INC 975 First National Bancorp in Fort Lee 595 First Alabama Bancshares, Inc 275, 813 First National Bancorp of Cullom, Inc 976 First American Bancorp 481 First National Bancshares, Inc 352 First American Bancshares, Inc 339 First National Bancshares Corporation II 793 First American Bank Corporation 69, 481, 594 First National Bancshares of Nelsonville, Inc. ... 69 First and Farmers Bank Holding Company 814 First National Bancshares of Paulding County, Ltd. . 595 First Antlers Bancorporation, Inc 484 First National Bank of Blue Island Employee Stock First Atlanta Bancshares, Inc 909 Ownership Plan 804 First Atlanta Corporation 594, 635 First National Bankshares, Inc 339 First BancCrossville, Inc 351 First National Cincinnati Corporation 595 First Bancorp 909 First National Corporation 272, 481, 814 First Bancorp, Inc 69 First National Corporation of Jacksonville 814 First Bancorp of Kansas 814 First National Corporation of Wynne 183 First Bancorp of Taylorville, Inc 481 First National Holding Company of Jackson 183 First Bancorporation of Cleveland, Inc 481 First National Lincoln Corporation 481 First Bancshares of Natchitoches, Inc 594 First National Shares of Louisiana 738 First Bank Shares of the South East, Inc 594 First National State Bancorporation 115 First Bank System, Inc. . 72, 133, 185, 275, 484, 598, First National Talladega Corporation 738 741, 818 First National Vermont Corporation 639 First Bankers Corporation of Florida 351, 976 First New England Bankshares Corp 595 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 71 A85 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. First NH Banks, Inc 481 Ft. Elliott Bancshares, Inc 739 First Norton Corporation 595 Fulda Bancorporation, Inc 352 First of America Bank Corporation 595 Full Service Insurance Agency, Inc 185 First of Groves Corporation 130 Gainer Corporation 814 First Paintsville Bancshares, Inc 69 Galatia Bancorp, Inc 130 First Polk Bankshares, Inc 909 Ganado Bancshares, Inc 482 First Railroad & Banking Company 72 Gateway Bancorp, Inc 482 First Railroad & Banking Company of Georgia .. 272, GCB Bancorp, Inc 595 669, 738, 963, 978 Gebsco, Inc 273 First Richardson BancShares, Inc 595 General Bancshares Corporation 909 First Sarasota Bancorporation 909 George Mason Bankshares, Inc 667 First Security Corporation 346 Georgetown National Bank Holding First Security Corporation of Kentucky 898 Company 273 First Shawnee Bancshares, Inc 595 GHW Associates 352 First Sheridan Bancshares, Inc 69 Gibson Investment Company 818 First Source Corporation 976 Giddings Bancshares, Inc 67 First South Bancorp, Inc 183 Glenrock Bancorporation, Inc 814 First State Bancorp of Monticello 275 GNB Bancorp, Inc 595 First State Bancorporation, Inc 272 Grand Bancorp 814 First State Capital Corporation 352 Grange National Banc Corp 183 First State Corp 481 Grant County Bancorporation, Inc 976 First State Corporation 69 Great American Corporation 965 First State Financial Corporation 183 Great Falls Bancorp 595 First State Holding Corp 272 Great Neck Bancorp 482 First Tule Bancorp, Inc 272 Greater Texas Bancshares, Inc 352 First Union Bancorp 352, 481 Green Mountain Financial Services First Union Bancorporation, Inc 181 Corporation 345 First Union Corporation 971 Greene County Bancshares, Inc 595 First United Bancshares, Inc 976 Guaranty Capital Corporation 130 First United Corporation 272 Gulf First Holding Corporation 814 First United Financial Services, Inc 482 Guyan Bancshares, Inc 667 First Valley Corporation 595 H & R Bankshares, Inc 130 First Virginia Banks, Inc 595 Haltom City Bancshares, Inc 719 First Waterloo Bancshares, Inc 814 Hamilton County Bancshares, Inc 130 First Western Bancshares, Inc 130 Harris Bankcorp, Inc 739 First Western Holding Company 482 Hartford National Corporation 43, 814 First Winnebago Corporation 69 Hartland Bancorp, Inc 183 First Winthrop BanCorporation, Inc 814 Hartsville Bancshares, Inc 595 First Wisconsin Corporation 171,667 Hastings Bancorp, Inc 899 First Wyoming Bancorporation 738 HCB Financial Corp 976 FirstBanc Holding Company, Inc 814 Headland Capital Corporation 739 FirstBank Corp 594 Headquarters Holding Company 667 Firstbancorporation of Batesville, Indiana 183 Heritage Bankshares, Inc 482 FirstBank Holding Company 350 Heritage Group, Inc 130 FirstBank Holding Company of California 272 Heritage Racine Corporation 482 FirstBank Holding Company of Colorado 350 Hi-Bancorp., Inc 909 FirsTier, Inc 480 Hibernia Corporation 667 FirstPlace Financial Corp 739 Highlands Bankshares, Inc 130 Firstway Financial, Inc 482 Hill City, Inc 352 Fishkill National Corporation 978 Hill Investment Company 800 Fleet Financial Group, Inc 133 Hillsboro Financial Corporation 909 Flint Hills Financial Services Corporation 355 Holyoke Bancorp, Inc 183 Florida National Banks of Florida, Inc 42 Home National Corporation 352 FM Bancorp, Inc 352 Home wood Holdings, Inc 667 FNB Bancshares, Inc 352 Hongkong and Shanghai Banking Corporation, FNB Banking Company 130 Hong Kong, B.C.C 113,275,355,976 FNB Bankshares 482 Horizon Bancorp Employee Stock Ownership Plan 814 F.N.B. Corporation 340, 578 Horizon Bankshares, Inc 352 FNB Financial Services Corporation 69 Houston Bancorporation, Inc 69 Foremost Bancshares, Inc 165 Houston City Bancshares, Inc 70 Forrest Bancshares, Inc 130 Howard Bancorp 976 Forsyth Bancshares, Inc 739 How-Win Development Co 275 Fort Knox Bancshares, Inc 69 HSBC Holdings B.V., Amsterdam, The Nether- Founders Bancorporation, Inc 343 lands 113, 355 Founders Bank Corporation 352 Hunt & Howell Bancshares, Inc 812 Fourth Financial Corporation 595, 667, 976 Hunter Holding Company 814 Franklin Bancorp 69 Huntley Bancshares, Inc 818 Franklin Capital Corporation 134, 976 Hyden Citizens Bancorp, Inc 482 Freedom Valley Bancshares, Ltd 909 IB Bancshares, Inc 909 Fremont Bank Corporation 130 Illini Community Bancorp, Inc 183 FSB Bancorporation 598 Independent Bankers Financial Corporation 651 FSB Holding Co 181 Independent Banks of Virginia, Inc 815 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • December 1985 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Independent Community Bancshares, Inc 595 Liberty State Bancshares, Inc 482 Independent Community Banks, Inc 130 Liberty United Bancorp, Inc 350 Indian Head Banks Inc 908 Lincoln Bancshares, Inc 70, 273 Indiana Bancshares, Inc 131 Linden State Bancorp 815 Indiana National Corporation 818, 909, 976 Logan County BancShares, Inc 353 Inter Community Bancorp 70 Lone Star BancGroup, Inc 184 Intermountain Bankshares, Inc 457 Long-Term Credit Bank of Japan, Limited, Tokyo, International Bancorp 815 Japan 345 International Business Bancorp 131 Louisiana Bancshares, Inc 125, 353, 483, International Commercial Bank of China, Taiwan, 641, 666 Republic of China 70 Lowcountry Bancshares, Inc 131 Intra West Financial Corporation 596, 906 Lowndes Bancshares, Inc 910 InvestArk Bankshares, Inc 70, 273 Lowry Facilities, Inc 483 Inwood Holding Corporation 739 Luray Bankshares 596 Iowa National Bankshares Corp 352 M & F Financial Corporation 184 Iowa Park Bancshares, Inc 668 Macon-Atlanta Bancorp., Inc 353 Irving Bank Corporation 173 Madison Bank Corp 739 I.S.B. Bancorporation, Inc 273 Magnolia Banking Corporation 815 J & M Bancshares, Inc 131 Mainline Bankshares of Portland, Inc 273 J. Carl H. Bancorporation 909 Maiden Trust Corporation 668 Jack's Fork Bancorporation, Inc 70 Malta Bancshares, Inc 131, 977 Jackson Bancorp, Inc 131 Malta Banquo, Inc 720 Jans Bancshares, Inc 815 Mammoth Bancorp, Inc 67 JBC Bancshares, Inc 273 Mancos Bancorporation, Inc 131 Jeff Davis Bankshares, Inc 183 Manufacturers Hanover Corporation ... 113, 133, 186, Jest, Inc 70 598, 978 Johnco Bancshares, Inc 273 Manufacturers National Corporation 721 J.P. Morgan & Co. Incorporated 251 Marble Falls National Bancshares, Inc 273 Junction City Holding Company 977 Marine Corporation 262, 353, 795 Kansas Bank Corporation 977 Marine Midland Banks, Inc 113, 355 Keeco, Inc 596 Marine Midland National Corporation 355, 818 Keekins Corporation 131 Marine Midland National Finance Corporation ... 818 Keene Bancorp, Inc 131 Marion County Bancshares, Inc 353 Kellett N.V., Curacao, Netherlands Antilles . 113, 355 Marion National Corporation 741 Kenneth Holding Company 183 Marisub of Wisconsin, Inc 795 Kennett Bancshares, Inc 977 Marshall & Ilsley Corporation 663, 668, 669, 739 Kentucky Bancorporation, Inc 44 Marshall Bancshares, Inc 131 Kentucky Southern Bancorp, Inc 596 Marshall Financial Corporation 70 Key Bancorp of the Pacific Inc 587, 668 MarTex Bancshares, Inc 184 Key Bancshares of New York Inc 741 Martinsburg Bancorp, Inc 353 Key Bancshares of West Virginia, Inc 965 Maryland National Corporation 253 Key Banks, Inc 587 , 598 , 668 MC Bancorp, Inc 184 Keystone Community Bancorporation 70 MCorp 642,655,797,911,979 KGG Ban Corp 739 MCorp Financial, Inc 642, 655, 797, 911, 979 Kimberly Leasing Corporation 183 McHugh Investment Company 353 Kingfisher Bancorp, Inc 739 McLaughlin Bancshares, Inc 977 Kingsland Bancshares, Inc 183 Meadowview Bancorp, Inc 70 Kingsley Banc Corp 482 Medina Valley Bancshares, Inc 131 Kingsville State Bancshares, Inc 815 Mellon National Corporation 256 Kisco Financial Corporation 352 Membancshares, Inc 668 Klein Bancshares, Inc 977 Mercantile Bancorporation, Inc 353, 798 Knob Noster, Inc 599 Mercantile Bankshares Corporation 133 Kootenai Bancorp 739 Merchants Bancorp, Inc 184, 353, 483 Lafayette Bancorporation 352 Merchants Bancorporation, Inc 70 Lake Hamilton Enterprises, Inc 974 Merrill Bancorporation, Inc 184 Lake Park Bancshares, Inc 273 Metamora Bancorp, Inc. 353 Landmark Bancshares, Inc 70 Metro Bancorp, Inc 70 Landmark Banking Corporation of Florida 273 Metro Bancorporation 273 Landmark Financial Group, Inc 668 Metroplex Bancshares, Inc 596 Laredo Bankcorp, Inc 815 Metropolitan Bancorp 70 Leackco Bank Holding Company, Inc 131 Metropolitan Bancshares, Inc 596 Leasing Equipment Services, Inc 134 Mid Continent Bancshares, Inc 70 Lee County Bancshares, Inc 668 Mid Town Bancorp, Inc 131 Leeme Bancorp, Inc 131 MidAmerican Corporation 815 LeMars Bancorporation, Inc 183 Mid-Atlantic Bankcorp 184 Lena Bancorp, Inc 909 Middlebury National Corporation 977 Lenexa Bancorporation, Inc 131 Midland Bancorporation 668 Lewis Bankshares, Inc 183 Midland Bank, pic, London, England 67 Liberty Bancorp, Inc 482 Midland Capital Co 70 Liberty Bancshares, Inc 596 Midlantic Banks Inc 458 Liberty Bay Financial Corporation 910 Mid-Missouri Bancshares, Inc 596 Liberty Financial Services, Inc 131 Mid-South Bancorp, Inc 910 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 71 A87 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. MidSouth Bancshares, Inc 131 Omnibancorp ^53 Midwest Bancshares, Inc 103, 644 Omnibank Corp 184 Midwestern Services, Inc 273 Onaga Bancshares, Inc 816 Millstadt Bancshares, Inc 815 ONB Merger Corp 815 Minnequa Bancorp, Inc 131 One Valley Bancorp of West Virginia, Inc. . 479, 812 Minooka Bancorp, Inc 483 Ontario Bancorporation, Inc 739 Mississippi River Bancshares, Ltd 815 Oran Bancshares, Inc 274 Mitchell Bank Holding Corporation 815 Ottawa Bancshares, Inc 977 MNet Corp 910 Overton Bancshares, Inc 132 Montgomery County Financial Corporation 355 Oxford Agency, Inc 348 Montgomery Financial Corporation 722 Palmer Bancorp, Inc 353 Moore Financial Group Incorporated 899 Park Financial of St. Paul, Inc 274 Morton Financial Corporation 70 Park Forest Holdings, Inc 668 Mount Vernon Bankshares, Inc 273 Parker Bankshares, Incorporated 274 M.S. Investment Co 815 Parker County Bancshares, Inc 596 MSB Bancshares, Inc 483 Pemi Bancorp, Inc 668 Mt. Vernon Bancorp, Inc 815 Penn Bancshares, Inc 353 Mt. Zion Bancorp, Inc 967 Penn Central Bancorp, Inc 596 Mustang Financial Corporation 353 Pennsylvania National Financial Corp 274 Nashville Holding Company 910 Peoples Bancorp, Inc 132 National Banc of Commerce Company 910 Peoples Bancorp of Sylacauga, Inc 668 National Bancorp of Kentucky, Inc 910 Peoples Bancorp of Washington 596 National Bancshares Corporation of Texas 70 Peoples Bancshares of Antigo, Inc 184 National Banking Corp 815 Peoples BancTrust Co., Inc 184 National Bankshares of La Jolla 71 Peoples Bank Corporation of Berea 596 National City Bancorporation 133 Peoples Bankshares, Ltd 484 National City Bancshares, Inc 273 Peoples Commerce Corporation 596 National Commerce Bancorporation 815 Peoples Financial Corp. Inc 596 National Commerce Corporation 741 Peoples Financial Corporation 353 National Holding Company 597 Peoples First Corporation 910 National Penn Bancshares, Inc 131 Peoples Mid-Illinois Corporation 274 National Westminister Bank PLC, London, Peoples State Bancshares, Inc 668 England 113 Peshtigo Financial Corp 132 Nationwide Bankshares, Inc 273 P.H. Bancorporation, Inc 166 NatWest Holdings, Inc 113 Phillips Insurance Agency, Inc 184, 355 NBC Bank Corp 468 Pierson Bancorporation, Inc 596 NBD Bancorp, Inc 258 Pikeville National Corporation 240 NBP Financial Services, Inc 273 Pilot Point Bancorp, Inc 910 NCNB Corporation 355 Pinnacle Bancshares, Incorporated 977 NEB Corporation 739 Pioneer American Holding Company Corp 483 Nebanco, Inc 818 Pioneer Bank Shares, Inc 910 Neosho County Bancshares, Inc 668 Piano Bancshares, Inc 71 New Bedford Community Bancorp 977 Plaza Bancshares, Inc 274 New East Bancshares, Inc 910 Polo Bancshares, Inc 483 New Era Bancorporation, Inc 71 Premier Bancorp, Inc 184 Nixon Financial Corporation 184 Prestonwood Bancshares, Inc 668 Norstar Bancorp, Inc 46, 72, 656 Princeton Bancshares, Inc 353 North Adams Bancshares, Inc 596 Provident Bancorp, Inc 353 North Bay Bancorp 184 P.S.B. Bancorporation, Inc 668 Northeast Bancorp, Inc 113 PSB Bancshares, Ltd 739 Northeast Montana Bank Shares, Inc 818 PT Investment Corporation 355 Northeastern Oklahoma Bancorporation, Inc 483 P.T.C. Bancorp 977 Northern Kentucky Trustcorp, Inc 71 PTC Financial Corporation 132 Northwest Bancshares, Inc 131 Pulaski Bancshares, Inc 71 Northwest Wisconsin Banco, Inc 105 Pullman Bancshares, Inc 597 Northwestco, Inc. 645 Putnam County Bancorp, Inc 977 Northwestern Mortgage Corporation 978 Queensborough Company 106 Norwest Corporation 60, 598 Quinlan Bancshares, Inc 483 Norwood Associates II 668 Raleigh Bankshares, Inc 274 NS&T Bankshares, Incorporated 355 Rankin Commerce Corp 71 O & F Cattle Company 184 Rappahannock Bankshares, Inc 816 Oak Hill Financial Inc 668 RB Bancorp 479 Oak Lawn Financial Ltd 815 RBC Holdings (USA) Inc 184 Oblong Bancshares, Inc 815 Red Bud Bancorp, Inc 483 O.C.B. Bancorp 273 Red River Bancorp, Inc 184 Ocean National Corporation 71 Rensselaer Financial Corporation 71 O'Donnell Bancshares, Inc 132 Republic Bancorp, Inc 816 Ohio Bancorp 274,977 Republic Bancshares, Inc 71 Old National Bancorp 815 Republic Bank Corporation 974 Old National Bancorp, Inc 184 Republic Financial Corporation 132 Olde Windsor Bancorp, Inc 353 Republic National Bancorp, Inc 910 Old-First National Corporation 739 RepublicBank Corporation 724, 736 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • December 1985 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Rhea County Financial Corporation 910 Southwest Virginia Bankshares, Inc 184 Richmond Bank Holding Co 910 Sovran Financial Corporation 355 RIHT Financial Corporation 979 Spectrum Financial Corporation 132 River Bend Bancshares, Inc 740 SSB Bancshares, Inc 669 River Valley Bancorporation, Inc 134 St. Charles Bancshares, Inc 910 Rock Financial Corporation 910 St. Martin Bancshares, Inc 669 Rock Springs American Bancorporation, Inc 740 St. Mary Holding Corporation 483 Rockford Bancorporation, Inc 740 Standard Chartered Bank PLC, London, England .. 470 Rockies Bancshares, Inc 274 Standard Chartered Overseas Holdings, Ltd., Lon- Rogers County Bank Holding Company 71 don, England 470 R.O.M. Financial Services, Inc 184 Star City Bancshares, Inc 185 Romy Hammes, Inc 668 State Bond and Mortgage Company 722 Round Lake Bancorp, Inc 597 State Financial Services Corporation 740 Ruidoso Bank Corporation 184 State First Financial Corporation 71 Rushford State Bancorp, Inc 184 State National Bancorp, Inc 597 Ruston Bancshares, Inc 740, 816 Stebbins Bancshares, Inc 354 Sacramento Bancorp 483 Stockmen's Bancorp 911 SafraBancorporation California 185 Stone Oak Bankshares, Inc 354 Salem Bancorp, Inc 816 Story County Bancorporation 800 Salem Community Bancorp, Inc 668 Suburban Bancorp, Inc 581 Salt Lake Holding Corp 799 Suburban Bancorporation 61 San Mateo County Bancorp 977 Suffolk Bancorp 132 Sand Ridge Financial Corp 740 Sulphur Springs Bancshares, Inc 132 Sanwa Bank Limited, Osaka, Japan 117 Summerville/Trion Bancshares, Inc 597 Saver's Bancorp, Inc 71, 579 Summit Bancorporation, Inc 974 SBC Financial Corporation 185 Sun Banks, Inc 243, 479, 666, 812 SBT Holding Company 185 Sunset Financial Corporation 479 Schmid Bros. Investment Co., Inc 274 SunTrust Banks, Inc 176, 666, 812 Scott Bancshares, Inc 910 Superior Bancshares, Inc 274 Scott County Bancorp, Inc 132 Susquehanna Bancshares, Inc 816 Seacoast Banking Corporation of Florida 812 Sutton Bancshares, Inc 669 Sebree Bankcorp 668 SW Financial Group, Inc 816 Second National Corporation 597, 816 Sweetwater Valley Corporation 167 Seconn Holding Company 353 Tarrant County Bancshares, Inc 669 Security Acadia Bancshares, Inc 353 Taylor Bancshares, Inc 977 Security Banc Corporation 185 Terrell Bancshares, Inc 132 Security Bancorp, Inc 354, 816 TexAm Bancshares, Inc 350 Security Bancorp of Tennessee, Inc 816 Texana Bancshares, Inc 185 Security Bancshares, Inc 185 Texarkana National Bancshares, Inc 71 Security Banks of Montana 246 Texas American Bancshares, Inc 483 Security Holding, Inc 185 Texas Commerce Bancshares, Inc 132 Security North Corporation 974 Texas First Financial Corporation 354 Security Pacific Corporation 118, 133, 186, 659, 660, Texas Independent Bancshares, Inc 483 740, 979 Texas National Bancorp, Inc 132 Security State Agency of Aitkin, Inc 979 Texas Security Bancshares, Inc 816 Texico Bancshares Corporation 354 Security State Corporation 977 Thatcher Banking Corporation 274 Sequatchie County Bancorp, Inc 740 Third Illinois Bancorp, Inc 274 Shamrock Bancshares, Inc 597 Third National Corporation 646 Shawneetown Bancorp, Inc 668 Thomas Bancshares, Inc 71 Shelby Bancshares, Inc 816 Thompson Financial Ltd 816 Sheridan Bancshares, Inc 47 Toledo Trustcorp, Inc 274, 978 Sidell Bancorp, Inc 597 Tolna Bancorp, Inc 740 Signal Hills Associates, Inc 977 Town and Country Bancorp 801 SJNB Financial Corp 910 Skiatook Bancshares, Inc 354 Town & Country Financial, Inc 911 SNBCorp 185 Tri City Bankshares Corporation 816, 978 Society Corporation 350, 730, 977 Tricorp, Inc 132 South Central Financial Services, Inc 669 Trivoli Bancorp, Inc 597 South First National Corporation 597 TrustCompany Bancorporation 978 South Ottumwa Bancshares, Inc 977 UBT Bancorp, Inc 817 South Trust Corporation 355 Union Bancorp 470 Southeast Minnesota Bancshares, Inc 597 Union Bancshares of Benton, Inc 817 Southern Arizona Bancorp 816 Union Bankshares, Ltd 185 Southern Bank Corp., Inc 71 Union National Bancorp of Barbourville, Inc. ... 669 Southshares, Inc 274 United Bancorp, Inc 817 SouthTrust Corporation 274, 354, 740 United Bancorp of Kentucky, Inc 598 Southwest Arkansas Bancshares, Inc 132 United Bancshares, Inc 911 Southwest Banc Shares, Inc 740 United Bank of Colorado, Inc 275 Southwest Bank Holding Company 132 United Banks of Colorado, Inc. ... 107, 132, 647, 740 Southwest Bankers, Inc 274 United Bankshares, Inc 350, 817 Southwest Financial Corporation 354, 910 United City Corporation 354, 662 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 71 A89 Pages Pages Bank Holding Company Act—Continued Bank Merger Act—Continued Orders issued—Cont. Orders issued—Cont. United Community Bancorp, Inc 598 P.B.T. Bank 72 United Community Corporation 589 Princeton Bank 979 United Community Financial Corporation 186 Bank Service Corporation Act United Iowa Bancshares, Inc 245 Delegation of authority to Federal Reserve Banks to United Missouri Bancshares, Inc 817 approve applications 99 United Mizrahi Overseas Holding Company B.V., Orders issued under Amsterdam, The Netherlands 63 American Data Technology, Inc 66 United New Mexico Financial Corporation . 968, 978 American National Bank and Trust Company 66 United Virginia Bankshares Incorporated 48 Southeast Bank, N.A 127 University Bancorporation, Inc 133 Bankers Trust Company, schedule for final Board ac- University State Bank Corporation 911 tion on placement of third-party commercial paper, US Bancorp 185 and Board statement on these activities 90, 629 US Bancshares 817 Bankers Trust New York Corporation, proposed action USA Bancshares, Inc 817 on applications by 32, 630 USBANCORP, Inc 911 Banking legislation, statement 424 USTCorp 817 Banks in agricultural communities, statements ... 435, 614 Valley Bancorp, Inc 978 Banque Indosuez, Paris, France, proposed action on Valley Bancorporation 275, 734 application by 442 Valley Bancshares, Inc 275, 599 Baronner, Robert F., elected Class A director, Rich- Verbanc Financial Corp 817 mond 360 Vernon Bank Corporation 598 Baxter, Junius F., appointed director, Denver Branch 368 Victoria Bankshares, Inc 354 Beardsley, Bruce M., appointed Director, Division of Vidor Bancorporation, Inc 133 Computing Services 324 Vidor Bancshares, Inc 275 Beutel, Allen E., appointed Executive Director for Wachovia Corporation 725 Computing and Information Services 779 Wakefield Bancshares, Inc 185 Board of Governors (See also Federal Reserve System) Wanamingo Bancshares, Inc 740 Consumer Advisory Council (See Consumer Adviso- Wapello Bankshares, Inc 71 ry Council) Warrick Financial Corporation 740 Federal Advisory Council, list A72 Water Tower Bancorp, Inc 669 Federal Open Market Committee (See Federal Open Waterville Bancshares, Inc 71 Market Committee) Watford City Bancshares, Inc 911 Fees (See Fees for Federal Reserve services to depos- W.D.K. Bancorporation 817 itory institutions) Weleetka Bancorporation, Inc 818 Interpretations (See Interpretations) Wesbanco, Inc 49 Litigation (See Litigation) Weslayan Bancshares, Inc 817 Members West Bancorp, Inc 911 Gramley, Lyle E., resignation 706 West Brook Bancshares, Inc 484 List, 1913-85 820 West Concord Bancshares, Inc 817 Volcker, Paul A., letter to congressional committee Westbanco, Inc 483 regarding conditional approval of applications to Westchase Bancshares, Inc 185 acquire nonbank banks 28 Western Kansas Investment Corporation, Members and officers, list A70 Inc 599 Payments system advisory group on large-dollar WGNB Corporation 740 transfers, appointment 706 Whitewater Bancorp, Inc 134 Policy statements and proposals (See specific subject) Whitney Holding Corporation 108 Publications and releases (See Publications in 1985) Willow Bend Bancshares, Inc 185 Regulations (See Regulations) Wilson & Muir Bancorp, Inc 185 Rules (See Rules) Winona National Holding Company 598 Staff changes Wireglass Bancorporation 978 Ashton, Richard M 443 Woodson Bancshares, Inc 354 Beardsley, Bruce M 324 Woodstock Holding Company, Inc 71 Beutel, Allen E 779 Worthen Banking Corporation 110 Cimeno, Thomas E., Jr 226 Worland Holding Company 275 Egertson, Jack M 162 Yellowstone Holding Company 817 Hampton, Charles L 324 York State Company 817 Howard, David H 779 Zapata Bancshares, Inc 817 Humphrey, David B 226 Zions Utah Bancorporation 969 Ireland, Oliver 443 Bank income, staff study on service charges as source, Jacklin, Nancy P 91 and their impact on consumers 609 Johnson, Karen H 779 Bank Merger Act Jones, William R 324 Orders issued under Judd, Thomas C 324 Bank of Virginia 179 Lindsey, David E 226 Bibb Interim Bank 979 Malphrus, Stephen R 324 1st Source Bank 979 Manasseri, Richard J 324, 956 Fifth Third Bank 979 Mattingly, J. Virgil, Jr 443 Glenwood State Bank 819 Moore, Bob Stahly 779 Independence Bank 979 O'Brien, Frank, Jr 91 M&I Marshall & Ilsley Bank 64 Pizer, Samuel 91 New Belknap Bank 599 Porter, Richard D 226 Norstar Bank of Upstate NY 276 Riggs, Elizabeth B 324 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • December 1985 Pages Pages Board of Governors—Continued Commercial paper activity—Continued Staff changes—Cont. J.P Morgan & Co. Incorporated, application regard- Ryan, John E 162 ing 630 Schneider, William C., Jr 324 Compagnie Financiere de Suez, Paris, France, proposed Schwartz, Gilbert T 91 action on application by 442 Simpson, Thomas D 226 Condition reports, price increase for subscription Slifman, Lawrence 226 tapes 162 Taylor, Stephen P 226 Consumer Advisory Council Taylor, William 162 Appointment of new members 87 Tigert, Ricki 443 List A73 Young, Florence M 443 Meetings 225,533,778 Zemel, Robert J 324 Nominations 629 Staff studies (See Staff studies) Consumer credit (See Credit) Statements to Congress (See Statements to Congress) Consumer debt, article on growth 389 Thrift Institutions Advisory Council, list A73 Consumer financial services industry, regulatory re- Bonds, proposed underwriting and dealing in municipal sponses to changes, article 75 revenue bonds 225, 534 Consumer leasing (See Regulations: M) Borrowing (See Credit) Consumer protection regulations (B and Z), staff study Boyer, James G., appointed director, New Orleans on scale economies in compliance costs 300 Branch 364 Corrigan, E. Gerald, statements 405, 520, 524 Brady, Thomas F., article and staff study 1,862 Credit (See also Loans) Branch banks Adjustable-rate financing in mortgage and consumer Federal Reserve credit markets, article 823 Directors (See Directors) Consumer, article on growth 389 Vice Presidents in charge, list A98 Debt collection practices, amendment of Regulation Foreign branches of U.S. banks, amendment of rules AA 32,441,453-55 regarding 957 Equal Credit Opportunity (See Equal Credit Opportu- Brayton, Flint, staff study 934 nity) BT Futures Corp., proposed action on application to Extended credit program, technical modification ... 31 expand activities 32 Federal Reserve Banks (See Regulations: A) Burse, Raymond M., appointed director, Louisville Federally sponsored credit agencies, overview, Branch 366 article 373 Business lending at commercial banks, article on Fractional availability crediting option, elimination . 323 changes 1 Merger and takeover activity, statements on potential Business loans by commercial banks, 1977-84, staff effects on credit market conditions 418, 422, 428 study on role of prime rate in pricing 862 Multilateral development institutions and their role in developing countries, statement 701 Seasonal credit program, modification 322 CALL and income subscription tapes (See Condition "Securitized," statement 508 reports) Stock market (See Over-the-counter margin stock list Canner, Glenn B., staff study 609 and Regulations: G, T, and U) Capacity utilization, article on revised Federal Reserve Truth in Lending (See Truth in Lending) rates 754 Credit cards Capital adequacy Interest rates, statement on Federal Reserve views on For dealers in U.S. government securities, statement . 405 proposals to establish nationwide ceilings 944 Guidelines, revisions 440, 445-53, 456 Regulation Z, amendments 31, 39 Capital markets, statement 508 Credit program, technical modification in Board's ex- Check clearing and collection (See also Fees, Float, and tended program 31 Transfers of funds) Cross, Sam Y., reports 82, 287, 607, 850 Collection services, new fee schedules, and proposal Culberson, James M., Jr., appointed director, Charlotte for two-tier schedule for collection of certain Branch 361 checks 30, 32 Currency, statement on Federal Reserve's role concern- Delayed availability of check deposits, statement ... 937 ing, and support of government agencies using curren- Large-dollar transfer systems, policy, appointment of cy data to investigate criminal activity 422, 613 advisory group, and interpretation of policy 533, 706, 778 Currency Design Act, statement 613 Regulation J (See Regulations) Cimeno, Thomas E., Jr., temporary appointment as DANKER, Deborah J., staff study and article ... 325, 836 Deputy Director, Division of Banking Supervision Debt (See also Credit) and Regulation 226 Consumer, article on growth 389 Citicorp, proposed underwriting and dealing in bonds Multilateral development institutions and their role in and securities 225, 534 developing countries, statement 701 Clark, Peter B., staff study 934 Debt collection practices, amendment of Commercial banks Regulation AA 32, 441, 453-55 Loan pricing and business lending, article on changes 1 Depository institutions (See also specific types) Mergers and acquisitions, 1960-83, staff study 25 Business, statement on framework for conducting .. 517 Profitability of insured commercial banks in 1984, Capital adequacy (See Capital adequacy) article 836 Financial structure changes to link depository institu- Role of prime rate in pricing of business loans, 1977- tions and other financial entities, statement 409 84, staff study 862 Fractional availability crediting option, elimination . 323 Commercial paper activity Out-of-state bank holding companies, statement on Bankers Trust Company (See Bankers Trust Com- Board's views 874 pany) Regulatory structure (federal) for financial institu- Bankers Trust New York Corporation and BT Fu- tions, statement 312 tures Corp., proposed action on applications . 32, 630 Reserve requirements (See Regulations: D) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 71 A91 Pages Pages Deposits Federal Reserve Banks—Continued Reserve requirements (See Regulations: D) Branches (See Branch banks) Deregulation and financial innovation in foreign indus- Chairmen and Deputy Chairmen 357-72, A98 trial countries, article 743 Cleveland, statement by Karen N. Horn, President . 415 Directors Credit extended by (See Regulations: A) Federal Reserve Banks Delegation of authority to, amendment of rules . 99, 895 Chairmen and Federal Reserve Agents .. 357-72, A98 Directors (See Directors) Deputy Chairmen 357-72, A98 Discount rates (See Interest rates) List 357-72 Fees (See Fees for Federal Reserve services to depos- Federal Reserve Branches itory institutions) Chairmen 357-72, A98 Income and expenses 159 List 357-72 Kansas City, statement by Marvin Duncan, Vice Discount rates at Reserve Banks (See Interest rates) President 504 Dividends New York, statements by E. Gerald Corrigan, Presi- Federal Reserve Banks 159 dent 405, 520, 524 Insured commercial banks, article on profitability .. 836 Presidents and Vice Presidents, list A98 Dulin, John P., appointed director, Memphis Branch . 366 Supervision by, Board policies 955 Duncan, Marvin, statement 504 Federal Reserve Board (See Board of Governors) Dwyer, Virginia A., appointed Class C director, New FEDERAL RESERVE BULLETIN, revisions to and dele- York 358 tions from statistical tables 160-62 Federal Reserve notes 159 Federal Reserve System (See also Board of Governors) EARNINGS and expenses (See Income and expenses) Map A99 Economic and financial developments (See Monetary Membership, admission of state banks ... 32, 91, 162, 229, policy) 325, 443, 535, 630, 707, 779, 883, 956 Economic Recovery Tax Act, staff study 934 Purposes and functions, revised edition 91 Economic situation, statements 205, 209, 221, 304 Supervisory oversight of certain transactions in U.S. Economics in policy and practice, article adapted from government securities, statement 528 address 601 Federally sponsored agency securities, statements on Economy, global, role of United States 221 regulation of market for 621,687 Edge Act corporations Federally sponsored credit agencies, overview, article .. 373 Applications to establish, amendments to Rules Re- Fees for Federal Reserve services to depository institugarding Delegation of Authority 895 tions International banking operations (See Regulations: K) Automated clearinghouse services, revised schedule . 29 Edwards, Gene, elected Class A director, Dallas 369 Check collection services, new schedules, and pro- Egertson, Jack M., Assistant Director, Division of posal for two-tier schedule for collection of certain Banking Supervision and Regulation, retirement 162 checks 30, 32 Electronic fund transfers (See Regulations: E, and Pricing of services Transfers of funds) Financial results of operations, reports . 88,441,629, Elliehausen, Gregory E., staff study 200 778 Ellis, Homer B., Jr., elected Class A director, Boston .. 357 Surpluses and shortfalls, policy statement 30 Equal Credit Opportunity Private sector adjustment factor, approval 30 Regulation B (See Regulations) Wire transfers of funds, changes 29 Rules, revision 442, 543-72 Finance, article on survey of home-seller financing ... 767 Laws, staff study 300 Financial developments of bank holding companies in Examinations, publication of Trust Examinations 1984, article 924 Manual 226 Financial innovation and deregulation in foreign indus- Exchange market intervention, staff study 325 trial countries, article 743 Expenses (See Income and expenses) Financial institutions, statement on federal regulatory structure 312 FARMING (See Agriculture) Financial services industry (See Consumer financial Farr, Helen T., staff study 933 services industry) Federal Advisory Council, list A72 Financial structure changes to link depository institu- Federal deposit insurance system, statement on propos- tions and other financial entities, statement 409 als for reforming 866 Financing (See specific subject) Federal Financial Institutions Examination Council ... 534 Float 30, 323 Federal Home Loan Bank Board, joint publication with Foreign banking and financing (See Regulations: K) Federal Reserve Board on adjustable-rate mortgages Foreign branches of U.S. banks, amendment of rules (ARMs) 159 regarding 957 Federal Open Market Committee Foreign currency options traded on stock exchange, Foreign exchange operations (See Foreign exchange proposal for joint venture to deal in 442 operations) Foreign exchange operations of Treasury and Federal Members and officers A72 Reserve, reports 82, 287, 607, 850 Policy actions, record . 33,92, 231,326,536,708,780,949 Foreign financial markets, article 743 Federal regulatory structure for financial institutions, Foreign industrial countries, article on financial innovastatement 312 tion and deregulation 743 Federal Reserve Act, orders issued under section 25 . 265, Fuellgraf, Charles L., Jr., appointed director, Pittsburgh 267, 269, 808 Branch 360 Federal Reserve and Treasury foreign exchange opera- Full Employment and Balanced Growth Act of 1978 tions (See Foreign exchange operations) (See Monetary policy: Reports to Congress) Federal Reserve Banks Futures and options markets, statement 508 Boston, temporary appointment of Thomas E. Futures commission merchant activities, application to Cimeno, Jr., Senior Vice President, as Deputy expand scope of activities of BT Futures Corp 32 Director of Board's Division of Banking Supervi- Futures contracts and options on futures contracts on sion and Regulation 226 stock indexes, proposed action 91 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • December 1985 Pages Pages GARCIA, Ruben M., appointed director, San Antonio Interpretations Branch 371 Policy statement on large-dollar wire transfer Garn-St Germain Depository Institutions Act of 1982 . 31, systems 778 39 Regulation E 32 Gehb, Donald J., elected Class A director, San Francis- Regulation Z 32 co 371 Interstate and regional banking, and relation to nonbank Germany, J. David, article 743 banks, statement 430 Gillett, Richard, appointed director, Detroit Branch .. 365 Investments (See also specific types) Glass-Steagall Act 90, 225, 629 Real estate, proposed action relative to bank holding Goldfaden, Lynn C., article 75 companies 162 Goodman, John L., Jr., article 823 Multilateral development institutions and their role in Gottwald, Floyd D., Jr., elected Class B director, developing countries, statement 701 Richmond 360 Ireland, Oliver, appointed Associate General Counsel Gramley, Lyle E., resignation as Member, Board of for Monetary Affairs 443 Governors 706 Guidelines J.P. MORGAN & Co. Incorporated, proposed action on Capital adequacy, revisions 440, 445-53, 456 application by 630 Purchase and sale of government-guaranteed loans, Jacklin, Nancy P., Assistant General Counsel, resignarevised policy 441 tion 91 Jefferson, Andrew L., Jr., appointed director, Houston HAAS, Richard A., staff study 325 Branch 370 Hampton, Charles L., appointed Senior Technical Ad- Johnson, Deborah, staff study 933 viser, Office of Staff Director for Management 324 Johnson, Karen H., appointed Assistant Director, Divi- Hartsfield, W. Wayne, appointed director, Little Rock sion of International Finance 779 Branch 366 Jones, William R., appointed Director, Division of In- Haysbert, Raymond V., Sr., appointed director, Balti- formation Services 324 more Branch 361 Judd, Thomas C., appointed Assistant Director, Contin- Hembree, H.L., III, elected Class A director, St. Louis . 365 gency Processing Center, Culpeper, Virginia 324 Henderson, Dale W., staff study 325 Hermes, James P., appointed director, Miami Branch . 363 KENNEDY, James E., article 487 Hildreth, Will A., appointed director, Nashville Branch 363 Kenzie, Ross B., appointed director, Buffalo Branch . 358 Holguin, Hector, appointed director, El Paso Branch . 370 Kirby, Jerry L., appointed director, Cincinnati Branch . 359 Home-seller finance, 1983, article on survey 767 Kurtz, Robert D., staff studies 300, 609 Horn, Karen N., statement 415 Hosley, Joan D., article 487 LEASING, consumer (See Regulations: M) Housing (See Mortgages) Legislation (See subject or specific name of act) Howard, David H., appointed Deputy Associate Direc- Lindley, James G., appointed director, Charlotte tor, Division of International Finance 779 Branch 361 Humphrey, David B., appointed Assistant Director, Lindsey, David E, appointed Associate Director, Divi- Division of Research and Statistics 226 sion of Research and Statistics 226 Humphrey-Hawkins Act (See Monetary policy: Re- Litigation, cases pending involving Board of Governors 73, ports to Congress) 134, 186, 276, 356, 485, 599, 670, 742, 819, 912, 980 Hurley, Willard L., appointed director, Birmingham Loans (See also Credit) Branch 362 Agricultural (See Agriculture) Hurst, Gerald P., article 75 Business, by commercial banks, 1977-84, staff study on role of prime rate in pricing 862 INCOME and expenses Home-seller finance, 1983, article on survey 767 Call and income subscription tapes, price increase .. 162 Mortgages (See Mortgages) Federal Reserve Banks 159 Pricing and business lending at commercial banks, Insured commercial banks, article on profitability .. 836 article 1 Industrial capacity, article on revised Federal Reserve Securities lending, adoption of supervisory policy .. 534 rates 754 Stocks (See Regulations: G, T, and U) Industrial production U.S. government-guaranteed, guidelines for purchase Index, article on revision 487 and sale, revised policy 441 Releases . 26, 85, 157, 202, 302, 403, 502, 611, 685, 776, Luckett, Charles A., articles 389, 823 864, 935 Installment credit, article on growth •.•.•••;• 389 Insured commercial banks, article on profitability in MAHONEY, Patrick I., article 137 1984 836 Malphrus, Stephen R., appointed Assistant Director, Interest rates Division of Information Services 324 Board's extended credit program, technical modifica- Manasseri, Richard J., appointed Assistant Director, tion 31 Division of Information Services, and Credit cards, statement of Federal Reserve views on resignation 324, 956 proposals to establish nationwide ceilings 944 Mann, Catherine L., article 277 Federal Reserve Banks, changes 28, 87, 99, 533 Margin requirements International Banking Act 882 Over-the-counter stocks (See Over-the-counter mar- International banking operations (See Regulations: K) gin stock list) International lending, statement on multilateral develop- Regulations G, T, and U (See Regulations) ment institutions and their role in developing coun- Martin, Preston tries 701 Capital markets, "securitized" credit, and futures International Lending Supervision Act of 1983 445 and options markets based on financial instru- International transactions of United States in 1984, ments, statement 508 article 277 Delayed availability of check deposits, statement ... 937 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 71 A93 Pages Pages Martin, Preston—Continued Options—Continued Merger and takeover activity Market, statement 507 Impact on domestic credit flows and safety and On futures contracts on stock indexes, proposed soundness of financial markets, statement 514 action 91 Potential effect on credit market conditions, state- Writing, on equity securities, amendment of Regulaments 418, 422, 428 tion T 226, 630, 631 Thrift institutions in Ohio, state-chartered, privately Oster, Richard M., elected Class B director, Boston .. 357 insured, statement on problems 412 Over-the-counter margin stock list, revisions 159,442,707, United States, statement on developments in external 955 economic position, and related policies here and abroad 697 Mattingly, J. Virgil, Jr., appointed Deputy General PARTEE, J. Charles Counsel 443 Bank holding companies, statement on Board's views McLaughlin, Mary M., article 836 on state law authorizing out-of-state companies to Melichar, Emanuel, statements 306, 941 acquire state-chartered banks and to engage in Member banks (See State member banks and Deposi- nonbanking activities 874 tory institutions) Banks in agricultural communities, statements on Merger and takeover activity current difficulties 435, 614 Impact on domestic credit flows and safety and Financial structure changes to link depository institusoundness of financial markets, statement 514 tions and other financial entities, statement 409 Potential effect on credit market conditions, state- Payment mechanism and systems (See Fees and Transments 418, 422, 428 fers of funds) Mergers Payment systems advisory group on large-dollar trans- And acquisitions by commercial banks, 1960-83, staff fers, appointment 706 study 25 Pfluger, Robert L., elected Class B director, Dallas ... 369 Bank Merger Act (See Bank Merger Act) Pizer, Samuel, Staff Adviser, Division of International Mischer, Walter M., Jr., appointed director, Houston Finance, resignation 91 Branch 370 Porter, Richard D., appointed Assistant Director, Divi- Monetary Control Act of 1980 29, 31, 39 sion of Research and Statistics 226 Monetary policy Powers, Edward D., elected Class B director, Chicago . 364 Objectives for 1985, statements 211, 221 Pricing of Federal Reserve services (See Fees for Feder- Reports to Congress 187, 671 al Reserve services to depository institutions) Small business and, statement 618 Prime rate, staff study on role of, in pricing of business Statements to Congress 211, 221, 690, 697 loans of commercial banks, 1977-84 862 U.S., in recent years, paper 14, 91 Private sector adjustment factor 30 Monetary services (Divisia) indexes of monetary aggre- Production, industrial (See Industrial production) gates, staff study 933 Public sector adjustment factor 30 Money stock data, revisions 226-29 Publications in 1985 (includes releases) Moore, Bob Stahly, appointed Special Assistant to the Adjustable-rate mortgages (ARMs), joint Federal Re- Board for Public Affairs 779 serve-Federal Home Loan Bank Board pamphlet . 159 Moran, Michael J., article 373 Annual Statistical Digest, 1984 882 Mortgages Bank holding companies, annual list 32 Adjustable-rate, joint Federal Reserve-Federal Home Bank holding company performance report 441 Loan Bank Board pamphlet, and proposed amend- Call and income subscription tapes, price increase .. 162 ment of Regulation Z 159, 534 Federal Reserve System—Purposes and Functions, Financing in mortgage and consumer credit markets, revised edition 91 article 823 List A74 Home-seller finance, 1983, article on survey 767 Over-the-counter margin stock list, revisions . 159, 442, Investment by bank holding companies, request for 707 comment 162 Priced services, financial results 88,441,629,778 Morton, John E., article 743 Staff studies (See Staff studies) Moyer, Robert W., elected Class A director, New York 358 Trust Examination Manual 226 NATIONAL Westminster Bank PLC, London, England, and Nat West Holdings, Inc., request for RADDOCK, Richard D., article 754 comment on application to engage in investment Randall, William S., appointed director, Seattle Branch . 372 advisory and securities brokerage services 956 Real estate (See Mortgages) Nonbank affiliates of bank holding companies, proposed Regulations (Board of Governors, see also Rules) action on operation 162 A, Extensions of Credit by Federal Reserve Banks Nonbank banks Adjustment of discount rates, amendments 99 Conditional approval of applications to acquire, letter AA, Unfair or Deceptive Acts or Practices to congressional committees from Chairman Debt collection practices, amendments 32, 441, 453-55 Volcker 28 B, Equal Credit Opportunity Effects of chartering, and proliferation, statement .. 424 Enforcement responsibility, technical amendment 335 Relation to interstate and regional banking, statement 430 Revision, article on overview 913 Suspension of processing of applications to acquire . 323 Simplification and updating, proposed revision ... 324 Nothaft, Frank E., article 767 Staff study 300 D, Reserve Requirements of Depository Institutions O'BRIEN, Frank, Jr., Deputy Assistant to the Board, Adjustments regarding net transaction accounts retirement 91 and reservable liabilities, amendments 31, 39 Options E, Electronic Fund Transfers Foreign currency, application to deal in, through joint Enforcement responsibility, technical amendment 335 venture, proposed action 442 Official staff commentary, changes 32, 324 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 Federal Reserve Bulletin • December 1985 Pages Pages Regulations—Continued Ryan, John E., Director, Division of Banking Supervi- G, Securities Credit by Persons Other than Banks, sion and Regulation, retirement 162 Brokers, or Dealers Extension to employee stock ownership plans, amendment 324, 629, 631 SAVINGS and loan associations, article 137 Margin stock, definition, technical amendment .. 323, Savings banks, article 137 335 Schneider, William C., Jr., appointed Assistant Direc- H, Membership of State Banking Institutions in the tor, Division of Information Services 324 Federal Reserve System Schroeder, Frederick J., staff study 200 Capital adequacy guidelines, revisions 445 Schwartz, Gilbert T., Associate General Counsel, resig- J, Collection of Checks and Other Items and Wire nation 91 Transfers of Funds Seaver, Richard C., appointed director, Los Angeles Nonpayment provision, temporary amendment ... 956 Branch 371 Notification for nonpayment of large-dollar checks Securities (See specific types) and improvement of notification service by Fed- Securities credit eral Reserve, amendments 225, 239 Over-the-counter stocks (See Over-the-counter mar- Updating, proposed amendment 324 gin stock list) K, International Banking Operations Regulations G, T, and U (See Regulations) Foreign banking organizations operating in United Securities lending, adoption of supervisory policy 534 States, revisions 882, 884 Seger, Martha R., statement 944 Lending to affiliates by certain Edge corporations, Seymour, Charles F., elected Class B director, Philadelproposed amendment to prohibit 779 phia 359 Operations of Edge corporations, revisions . 882, 884 Sheffield, David E., appointed director, Houston M, Consumer Leasing Branch 370 Enforcement responsibility, technical amendment 335 Simpson, Thomas D., appointed Deputy Associate Di- T, Credit by Brokers and Dealers rector, Division of Research and Statistics 226 Extension to employee stock ownership plans, Slifman, Lawrence, appointed Deputy Associate Direcamendments 630, 632 tor, Division of Research and Statistics 226 Initial margin requirements for writing options on Small business and monetary policy, statement 618 equity securities, amendments 226, 630, 631 Smith, Dolores S., article 913 Margin stock, definition, technical amendment . 323— Smith, Ronald H., elected Class A director, Philadel- 24, 335 phia 358 U, Credit by Banks for the Purpose of Purchasing or Staff studies Carrying Margin Stocks Bank income, service charges as source, and their Margin stock, definition, technical amendment .. 323, impact on consumers 609 335 Economic Recovery Tax Act 934 Y, Bank Holding Companies and Change in Bank Electronic Fund Transfer Act, compliance costs and Control consumer benefits 200 Capital adequacy guidelines, revisions 445-53 Mergers and acquisitions by commercial banks, Extension of registration period for certain bank 1960-83 25 holding companies, revisions 90 Monetary services (Divisia) indexes of monetary ag- Z, Truth in Lending gregates, revisions 933 Adjustable-rate mortgages (ARMs), proposed Role of prime rate in pricing of business loans by amendment 534, 707 commercial banks, 1977-84 862 Credit cards, amendment 31, 39 Small empirical models of exchange market interven- Enforcement responsibility, technical tion: Applications to Canada, Germany, and Japan . 325 amendment 335 Truth in lending and equal credit opportunity laws, Official staff commentary, changes 32, 324 scale economies in compliance costs 300 Staff study 300 State member banks Regulatory structure (federal) for financial institutions, Capital adequacy (See Capital adequacy) statement 312 Membership in Federal Reserve System (See Federal Reserve requirements of depository institutions (See Reserve System) Regulations: D) Mergers (See Bank Merger Act) Revisions (See also specific subject) Supervision, Board policy to strengthen 955 Capacity utilization, article on revised Federal Re- State-chartered banks, statement on acquisition by outserve rates 754 of-state bank holding companies 874 Capital adequacy guidelines 440, 445-53 Statements to Congress (including reports and letters) Monetary services (Divisia) indexes of monetary ag- Agricultural banking experience in 1984 and status of gregates 933 farm sector (Emanuel Melichar, Senior Economist, Money stock data 226-29 Division of Research and Statistics) 306 Regulations and rules (See Regulations and Rules) Agricultural legislation (Marvin Duncan, Vice Presi- Statistical tables in FEDERAL RESERVE BULLETIN 160-62 dent, Federal Reserve Bank of Kansas City) 504 Rhoades, Stephen A., staff study 25 Bank holding companies, Board's views on state law Rice, Emmett J., statement on small business and authorizing out-of-state companies to acquire statemonetary policy 618 chartered banks and to engage in nonbanking activi- Riggs, Elizabeth B., appointed Assistant Director, Divi- ties (Governor Partee) 874 sion of Computing Services 324 Banking legislation, proposed, issues involved, par- Robinson, Andrew A., appointed director, Jacksonville ticularly effects of chartering nonbank banks and Branch 363 their proliferation (Chairman Volcker) 424 Robinson, E.B., Jr., elected Class A director, Atlanta .. 362 Banks in agricultural communities, current difficulties Rork, Robert T., appointed director, Houston Branch 370 (Governor Partee) 435, 614 Rules (Board of Governors; see also Regulations) Capital adequacy for dealers in U.S. government Delegation of authority, amendments .. 99, 456, 895, 957 securities (E. Gerald Corrigan, President, Federal Equal opportunity, revision 442, 543-72 Reserve Bank of New York) 405 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 71 A95 Pages Pages Statements to Congress—Continued Stoney, Janice D., appointed director, Omaha Capital markets, "securitized" credit, and futures Branch 369 and options markets based on financial instruments Strong, Thomas M., elected Class A director, Minne- (Vice Chairman Martin) 508 apolis 367 Credit card interest rates, views of Federal Reserve Sullivan, Barry F., elected Class A director, on proposals to establish nationwide ceilings (Gov- Chicago 364 ernor Seger) 944 Supervision by Federal Reserve System Currency, Federal Reserve's role concerning, and Board policies 955 support of government agencies using currency Statement on financial condition of institutions data to investigate criminal activity (Theodore E. under 877 Allison, Staff Director for Federal Reserve Bank Suran, Sandra A., appointed director, Portland Activities) 442 Branch 372 Currency Design Act (Theodore E. Allison, Staff Survey of home-seller finance, 1983, article 767 Director for Federal Reserve Bank Activities) 613 Symansky, Steven A., staff study 325 Delayed availability of check deposits (Vice Chairman Martin) 937 TABLES (For index to tables published monthly, see Depository institutions, framework for conducting guide at top of p. A81; for special tables published business (Chairman Volcker) 517 during the year, see list on p. A69) Economic situation (Chairman Volcker) .. 204, 209, 304 Economy, global, role of United States (Chairman Statistical, in FEDERAL RESERVE BULLETIN, revisions and deletions 160-62 Volcker) 221 Taylor, Stephen P., Assistant Director, Division of Farm sector, review of financial experience (Emanuel Research and Statistics, retirement 226 Melichar, Senior Economist, Division of Research Taylor, William and Statistics) 941 Appointed Director, Division of Banking Supervision Federal deposit insurance system, proposals for reand Regulation 162 forming (Chairman Volcker) 866 Federal Reserve System's supervisory oversight of Federal regulatory structure for financial institutions certain transactions involving U.S. government se- (Chairman Volcker) 312 curities, statement 528 Federal Reserve System's supervisory oversight of Financial condition of institutions under supervision certain transactions involving U.S. government seof Federal Reserve, statement 877 curities (William Taylor, Director, Division of Testimony (See Statements to Congress) Banking Supervision and Regulation) 528 Thrift industry in transition, article 137 Financial condition of institutions under the supervi- Thrift Institutions Advisory Council, list A73 sion of the Federal Reserve (William Taylor, Direc- Thrift institutions in Ohio, state-chartered privately tor, Division of Banking Supervision and Regulainsured, statement 412, 415 tion) 877 Tigert, Ricki, appointed Assistant General Counsel for Financial structure changes to link depository institu- International Banking 443 tions and other financial entities (Governor Partee) . 409 Trade, U.S., and current account deficits, statement .. 308 Interstate and regional banking, and relation to non- Trammell, A.G., appointed director, Birmingham bank banks (Chairman Volcker) 430 Branch 362 Merger and takeover activity Transfers of funds Impact on domestic credit flows and safety and Automated clearinghouses (See Automated clearingsoundness of financial markets (Vice Chairman houses) Martin) 514 Delayed availability of check deposits, statement ... 937 Potential effect on credit market conditions (Vice Electronic Fund Transfer Act, staff study on compli- Chairman Martin) 418, 422, 428 ance costs and consumer benefits 200 Monetary policy Fees (See Fees for Federal Reserve services to depos- Reports 187, 671 itory institutions) Statements (Chairman Volcker) .... 211, 221, 690, 697 Fractional availability crediting option, elimination . 323 Multilateral development institutions and their role Large-dollar transfer systems, policy, appointment of with respect to debt and growth problems in develadvisory group, and interpretation of policy . 533, 706, oping countries (Chairman Volcker) 701 778 Nonbank banks, letter regarding conditional approval Regulation E (See Regulations) of applications to acquire (Chairman Volcker) 28 Regulation J (See Regulations) Regulation of market for Treasury and federally spon- Treasury and Federal Reserve foreign exchange operasored agency securities (Chairman Volcker) . 621, 687 tions (See Foreign exchange operations) Small business and monetary policy (Governor Rice) . 618 Treasury and federally sponsored agency securities, Thrift institutions in Ohio, state-chartered, privately statements on regulation of market 621, 687 insured, statements on problems (Governor Martin, Trust Examination Manual 226 and Karen N. Horn, President, Federal Reserve Truth in Lending Bank of Cleveland) 412,415 Regulation Z (See Regulations) United States, developments in external economic Staff study 300 position, and related policies here and abroad (Gov- Tryon, Ralph W., staff study 325 ernor Martin) 697 U.S. government securities market, problems (E. Gerald Corrigan, President, Federal Reserve UNITED STATES, statement on developments in ex- Bank of New York) 520, 524 ternal economic position, and related policies here U.S. trade and current account deficits (Governor and abroad 697 Wallich) 308 U.S. government-guaranteed loans, guidelines for pur- Stock market credit chase and sale, revised policy 441 Over-the-counter stocks (See Over-the-counter mar- U.S. government securities gin stock list) Capital adequacy for dealers in, statement 405 Regulations G, T, and U (See Regulations) Federal Reserve System's supervisory oversight of Stocks (See specific types) certain transactions, statement 528 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 Federal Reserve Bulletin • December 1985 Pages Pages U.S. government securities market, statement on Volcker, Paul A.—Continued recent problems 520 Nonbank banks, letter to congressional committees U.S. international transactions in 1984, article 277 regarding conditional approval of applications to U.S. trade and current account deficits, statement .. 308 acquire 28 Regulation of market for Treasury and federally sponsored agency securities, statements 621, 687 VOLCKER, Paul A. WALLICH, Henry C., statement on U.S. trade and Banking legislation, proposed, issues involved, par- current account deficits 308 ticularly effects of chartering nonbank banks and Weight, G. Dale, appointed director, Portland Branch 372 their proliferation, statement 424 Welch, John F., Jr., elected Class B director, New York .. 358 Depository institutions, statement on framework for Wells, Joel R., Jr., appointed director, Jacksonville conducting business 517 Branch 362 Economic situation, statements 204, 209, 304 Wheeler, Don M., appointed director, Salt Lake City Economics in policy and practice, article adapted Branch 372 from address 601 White, Alice P., article 137 Economy, global, role of United States 221 Wilson, James C., appointed director, Denver Branch 368 Federal deposit insurance system, statement on pro- Wire transfers of funds (See Transfers of funds) posals for reforming 866 Wolfson, Martin H., article 924 Federal regulatory structure for financial institutions, statement 312 YANTOMASI, Joseph, appointed director, Buffalo Interstate and regional banking, and relation to non- Branch 358 bank banks, statement 430 Young, Florence M., appointed Adviser, Division of Monetary policy, statements 211, 221, 690, 697 Federal Reserve Bank Operations 443 Multilateral development institutions and their role with respect to debt and growth problems in devel- ZEMEL, Robert J., appointed Assistant Director, Divioping countries, statement 701 sion of Computing Services 324 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A97 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 Robert S. Kaplan 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 A. Mclnnis Fred R. Hen- Jacksonville 32231 E. William Nash, Jr. James D. Hawkins Miami 33152 Eugene E. Cohen Patrick K. Banon 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 Thomas C. Melzer 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 John B. Davis, Jr. Gary H. Stern Michael W. Wright Thomas E. Gainor Helena 59601 Gene J. Etchart Robert F. McNellis KANSAS CITY 64198 Irvine O. Hockaday, Jr. Roger Guffey Robert G. Lueder Henry R. Czerwinski Denver 80217 James E. Nielson Wayne W. Martin Oklahoma City 73125 Patience S. 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 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 Robert M. McGill Portland 97208 Paul E. Bragdon Angelo S. Carella Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett 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

A98 The Federal Reserve System "T St. Louis Oklahoma Ciittl. \Mtmpkis Nashvil'fr • »---«* —t v Little Rock Birmi*gh'*A®laHta> Dallas® M L M M MM > Hou ston ' \ x I R • • M H K m NI 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