Federal Reserve Bulletin, 1986-03

VOLUME 72 • NUMBER 3 • MARCH 1986 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 163 FINANCIAL CHARACTERISTICS OF 191 ANNOUNCEMENTS HIGH-INCOME FAMILIES Appointment of new members to the Con- This article based on the 1983 Survey of sumer Advisory Council. Consumer Finances (1) describes the demo- Issuance of interpretation of margin regraphic characteristics of families in the quirements involving a shell corporation highest income decile and presents statisused to finance the acquisition of margin tics on the size and composition of their stock of a target company. wealth; (2) examines the attitudes and behavior of high-income families with regard Release of preliminary figures on income to savings and asset portfolio composition; and expenses of the Federal Reserve and (3) compares the estimates of aggregate Banks. household wealth made from the survey Availability of revised list of OTC stocks data used in this article with those made subject to margin regulations. from flow of funds account data. Proposed revisions to Regulation Q; extension of comment period on proposals con- 178 INDUSTRIAL PRODUCTION cerning Federal Reserve float; proposal for Industrial production rose an estimated 0.7 Supplemental Adjusted Capital measure. percent in December 1985. Changes in Board staff. Admission of six state banks to membership 180 STATEMENTS TO CONGRESS in the Federal Reserve System. Emmett J. Rice, Member, Board of Governors, presents the views of the Board on two legislative proposals that would estab- 195 LEGAL DEVELOPMENTS lish nationwide ceilings on credit card inter- Various bank holding company, bank serest rates and says that a federal ceiling on vice corporation, and bank merger orders; credit card rates would be inappropriate, and pending cases. before the Subcommittee on Financial Institutions and Consumer Affairs of the Senate Committee on Banking, Housing, and Urban Affairs, January 28, 1986. Ai FINANCIAL AND BUSINESS STATISTICS A3 Domestic Financial Statistics 184 Paul A. Volcker, Chairman, Board of Gov- A44 Domestic Nonfinancial Statistics ernors, discusses the issues involved in the A53 International Statistics budgetary treatment and procedures of the Federal Reserve System and says that the Federal Reserve wants to operate with A69 GUIDE TO TABULAR PRESENTATION, maximum efficiency and welcomes con- STATISTICAL RELEASES, AND SPECIAL gressional oversight, before the Subcom- TABLES mittee on Domestic Monetary Policy of the House Committee on Banking, Finance and Urban Affairs, January 29, 1986. A76 BOARD OF GOVERNORS AND STAFF Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 FEDERAL OPEN MARKET COMMITTEE A85 FEDERAL RESERVE BANKS, BRANCHES, AND STAFF; ADVISORY COUNCILS AND OFFICES A80 FEDERAL RESERVE BOARD A86 MAP OF FEDERAL RESERVE SYSTEM PUBLICATIONS A83 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families Robert B. Avery and Gregory E. Elliehausen of top 1 percent of families ranked by income, offer the Board's Division of Research and Statistics a unique opportunity to examine the financial prepared this article with the assistance of Glenn behavior of the wealthiest U.S. families. B. Canner, Thomas A. Gustafson, Julia Spring- Although surveys of household wealth have er, and members of the Board's Flow of Funds been conducted fairly regularly since the end of Section. Special thanks are due Richard T. Cur- the Second World War, adequate data on the tin of the Survey Research Center of the Univer- portfolios of the wealthy are available from only sity of Michigan, who supervised the design of a few sources. One such source is data published the survey and its implementation. This is the by the Internal Revenue Service from federal last in a series of three reports on the 1983 estate tax returns.1 Unfortunately, demographic Survey of Consumer Finances. The first report characteristics are not available for these data. appeared in the September 1984 issue, and the Another source is the 1979 Income Survey Desecond appeared in the December 1984 issue. velopment Program of the Department of Health Footnotes appear at the end of the article. and Human Services, which provides information for a sample of households larger than that Families with high incomes and large amounts of of most other surveys of wealth.2 The 1962 assets constitute a relatively small proportion of Survey of Financial Characteristics of Consumthe population but have a relatively large share of ers generally has been regarded as the most its income and wealth. The financial decisions of comprehensive and accurate source of informathese families, therefore, can have a dispropor- tion ever obtained on the size and composition of tionate effect on saving and investment in the household portfolios.3 The 1962 survey, which household sector. However, because the number contains a very detailed inventory of assets and of these families is small, household surveys liabilities, includes a supplemental sample of provide an insufficient number of observations high-income families drawn from federal income with which to study their behavior unless the tax files to ensure that a sufficient number of surveys have very large sample sizes or over- wealthy families are covered. sample such families. The 1983 Survey of Con- The 1983 Survey of Consumer Finances is the sumer Finances, jointly sponsored by the Feder- most comprehensive survey of household wealth al Reserve Board, the Department of Health and since the 1962 survey. The results presented here Human Services, and five other federal agencies, include responses of high-income families from collected a comprehensive inventory of the as- the base sample of the 1983 survey, which was sets and liabilities of a base sample of 3,824 the sample discussed in the two earlier BULLErandomly selected U.S. households. To increase TIN articles on the survey; but the majority of the the representation of the wealthy in the survey, observations used here are those from the spethe base sample was augmented with 438 high- cial, high-income sub sample and are being reincome families drawn from tax files. The data ported for the first time. on these 438 families, most of which are in the The article is divided into three sections. The first describes the demographic characteristics of NOTE. The data from the 1983 Survey of Consumer Fi- families belonging to the highest income decile nances, including the high-income supplement, are available and analyzes the size and composition of their on request from the National Technical Information Service, 5285 Port Royal Road, Springfield, Virginia 22161. wealth. The second section examines the atti- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • March 1986 tudes and behavior of high-income families with category that are most likely to have a household regard to saving and the interrelationship be- with a working husband and nonworking wife (in tween such attitudes and the composition of virtually all of the households with one earner, it asset portfolios. The third section compares the is the husband, and only 21 percent of the wives estimates of aggregate household wealth made are employed full time). Also, families in the from the survey data with estimates made from highest income group are almost all non-Hispanflow of funds account data. Appendix A dis- ic Caucasians, are the most likely to have significusses the design of the main survey and sub- cant unearned income, and are the oldest of the sample and the preparation of the data; appendix high-income families. The data suggest that even B discusses errors of sampling. for very high income groups, most wealth is saved out of accumulated earnings, not inherited. For the lower three of the four high-income CHARACTERISTICS groups, the percentage of families earning more OF HIGH-INCOME FAMILIES than half of their income is higher than that of the total sample average. The survey offers a rare picture of the demo- Data on occupation offer a revealing glimpse of graphic and financial characteristics of wealthy the relative return of various economic sectors. families. Although other data, such as tax infor- Although the family heads of only 2 percent of mation, are available on individuals, the focus of the overall sample work in commercial and inthe survey is the family.4 Data reported here are vestment banking, insurance, and real estate, as of the date of the survey, February through they constitute more than 31 percent of the July 1983, except for income, which is measured family heads of the highest income subgroup. for 1982. All responses were weighted using the Lawyers and accountants represent less than 1 procedures described in appendix A. percent of the family heads of the overall sample, Table 1 displays the characteristics of the full, yet they constitute 12 percent of the highest weighted sample of the 1983 survey, called "all income subgroup and 12 percent of the secondfamilies," as well as of four high-income sub- highest group. Interestingly, health professionals groups. The category "all families" consists of are most highly represented in the $100,000the base sample plus the high-income subsample $149,999 subgroup. Alt-hough professionals, such (4,103 families). The high-income subgroups are as doctors, lawyers, and accountants, constitute made up of the special subsample plus high- a disproportionate fraction of all the high-income income ifamilies in the base sample, for a total of subgroups, their greatest concentration is in the 774 families (see appendix table B.2). The in- second-highest group. Families headed by entrecome ranges of the four subgroups and the preneurs and by individuals in banking, insurestimated proportion of total U.S. families in ance, and real estate appear to have the best each group are as follows: (1) $50,000-$99,999, odds of earning the highest incomes. about 8 percent; (2) $100,000-$ 149,999, about 1 The 1983 survey collected data on virtually percent; (3) $150,000-$279,999, about Vi percent; every aspect of the family's balance sheet. These and (4) $280,000 or more, the upper Vi percent. data can be summed to produce an estimate of Thus, the weighted high-income group repre- each family's net worth, accounting for all finansents about 10 percent of all families. cial assets, equity in homes, businesses, and Families in the four subgroups show signifi- other properties, as well as all financial liabilcantly different distributions for virtually every ities. The survey also collected data on automocharacteristic. Families with income from biles and employer-provided pension assets, but $50,000 to $99,999 are likely to be younger, have these data were not used for this article. A less education, and have two earners, and they surprisingly large percentage of all U.S. families are more likely than higher-income families to be were estimated to have a net worth of more than nonwhite or Hispanic. The table shows that $500,000 (table 2). Net worth was at least families in the $150,000-$279,999 subgroup are $500,000 for 4 percent of families, and almost 2 the most likely to have only one spouse working. percent of families (an estimated 1,310,000) had a However, it is the families in the highest income net worth of at least $1 million. Almost xh percent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families 165 of the population (320,000 households) were esti- categories of wealth than is that of non-Hispanic mated to have net financial assets (which exclude Caucasians. business, property, and housing assets) of at Because of the special nature of the sample least $1 million. Somewhat surprisingly, families design of the 1983 survey, a comparison of its that inherited most of their wealth appear in the findings with most earlier surveys of wealth is various categories of net worth with approxi- inappropriate. The design of the 1962 Survey of mately the same frequency as those who accu- Consumer Finances, however, was almost idenmulated it out of saving; households grouped by tical and thus offers an interesting point of comthe age of the family head show patterns of parison. Even after adjusting for inflation, the distribution by net worth that are similar across number of wealthy families has increased signifigroups, except for the youngest. However, the cantly since 1962 (table 3). About 14 percent of distribution of nonwhite and Hispanic families is the families in the 1983 survey were estimated to considerably more concentrated in the lower have a net worth of at least $163,800, in contrast 1. Distribution of 1982 high-income families with given levels of income, by selected characteristics, and of all families, by such characteristics1 Percent Family income (dollars) AAllll FFaammiillyy cchhaarraacctteerriissttiicc 50,000- 100,000- 150,000- 280,000 ffaammiilliieess 99,999 149,999 279,999 or more Age of head (years) Less than 25 1 * * * 8 25-34 13 13 1 2 23 35-44 30 19 15 16 20 45-54 26 33 29 28 16 55-64 19 23 37 32 15 65-74 8 11 15 19 12 75 or more 2 1 3 4 7 Education of head 0-12 grades 23 16 5 4 60 Some college 18 7 12 12 17 College degree 28 32 30 36 13 Graduate school 31 46 54 48 10 Occupation of head Not working 9 12 5 11 31 Clerical or sales 6 5 2 1 8 Craftsman or foreman 10 2 * * 12 Operative, labor, or service work 4 • * * 18 Lawyer, accountant 3 14 12 12 1 Health service professional 2 13 8 2 1 Banking, insurance, real estate 8 13 17 31 2 Other professional or managerial Service sector Not self-employed 17 10 9 3 9 Self-employed 6 5 7 9 3 Manufacturing sector Not self-employed 22 16 20 14 8 Self-employed 11 11 18 17 7 Race or national origin of head Caucasian 92 91 % 98 82 Nonwhite or Hispanic 8 9 4 2 18 Marital status of head Unmarried Not working 2 3 2 * 17 1 Working 8 7 4 9 22 Married Neither spouse working 4 7 2 10 10 One spouse working 29 44 54 49 23 1 Both spouses working 56 39 38 31 28 Source of income and of assets More than one-half of income from earnings 85 83 84 66 70 More than one-half of assets from saving or earnings 94 95 91 93 93 1. Here and in the following tables, components may not add to and an asterisk denotes a value of less than 0.5 percent or no cases totals because of rounding; totals for Caucasians exclude Hispanics, reported, who are defined as individuals of Spanish origin regardless of race; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • March 1986 2. Distribution of all families with selected characteristics, by net worth, 1983 Percent except where otherwise noted Net worth (dollars)1 MMeeaann MMeeddiiaann FFaammiillyy cchhaarraacctteerriissttiicc Less 50,000- 100,000- 150,000- 250,000- 500,000- 1,000,000 ((ddoollllaarrss)) ((ddoollllaarrss)) than Total 99,999 149,999 249,999 499,999 999,999 or more 50,000 Family income (dollars) Less than 10,000 86 10 2 1 1 * * 100 25,140 2,565 10,000-19,999 71 17 6 4 2 1 • 100 45,551 18,750 20,000-29,999 63 18 7 6 4 1 * too 69,381 31,000 30,000-49,999 40 26 13 11 8 3 * 100 109,871 70,055 50,000 or more 13 15 14 14 18 12 14 100 797,662 194,297 Age of head (years) Less than 35 86 8 2 2 1 * • 100 25,603 3,454 35-44 59 20 9 6 4 2 1 100 85,051 37,332 45-54 49 21 11 8 6 3 3 100 193,935 51,394 55-64 42 22 9 11 9 4 3 100 201,573 64,806 65 or more 49 20 10 7 7 4 3 100 250,068 51,933 Occupation of head Not working 64 15 8 5 5 2 1 100 88,963 23,331 Clerical or sales 69 17 6 5 4 * • 100 52,228 21,202 Craftsman or foreman ... 65 21 7 5 1 1 * 100 5511,,442299 2288,,667722 Operative, labor, or service work 81 13 4 2 1 * « 100 28,539 11,245 Lawyer, accountant 43 10 10 12 4 7 13 100 375,055 95,202 Health service professional 28 7 13 14 14 16 8 100 412,462 200,156 Banking, insurance, real estate 26 17 9 11 15 12 10 100 774466,,779988 114411,,448800 Other professional or managerial Service sector Not self-employed .. 59 20 7 9 3 2 1 100 83,205 30,136 Self-employed 41 20 9 11 13 1 4 100 344,515 69,827 Manufacturing sector Not self-employed .. 48 25 10 8 5 2 2 100 129,641 55,055 Self-employed 29 15 13 12 16 8 7 100 525,370 120,172 Race or national origin of head Caucasian 56 19 9 7 5 3 2 100 155,812 39,919 Nonwhite or Hispanic ... 84 9 2 2 2 * * 100 34,276 3,428 Source of more than one-half of assets Gifts and inheritance 56 17 10 7 4 3 2 100 156,466 33,161 Saving 61 17 7 6 5 2 2 100 131,744 30,393 All families 61 17 8 6 5 2 2 100 133,502 30,553 1. Net worth is defined as total assets less outstanding debts. Total thrift, profit-sharing, stock-option, and tax-deferred-savings plans); assets consist of (1) value of the family's home; (2) value of other and (6) other financial assets (U.S. government savings bonds, properties; (3) net value of nonpublic businesses; (4) liquid assets municipal bonds, Treasury bills and bonds, corporate and other (checking accounts, money market deposit accounts, money market bonds, publicly traded stock, other mutual funds, trust accounts, and mutual fund accounts, savings accounts, and certificates of deposit); notes owed to the family). Outstanding debts include mortgages on (5) retirement assets (individual retirement accounts, Keogh accounts, homes and other properties, credit card debt, outstanding balances on cash value of whole-life insurance policies, and employer-sponsored credit lines, and all other installment and noninstallment debts. to about 6 percent of the 1962 families. However, families with incomes of at least $280,000 have a a slightly larger portion of the 1983 sample had a net worth of at least $1 million, compared with negative net worth, perhaps because the 1983 only 5 percent of the lowest subgroup. Differfigures exclude vehicles, which are a significant ences in the distribution of wealth across age portion of the wealth of poorer families. groups are much more pronounced in the high- There are significant variations in the distribu- income group than in the population as a whole. tion of wealth even within the high-income sub- About 43 percent of the high-income families groups (table 4). The mean net worth of families headed by persons aged 65 years or more had a with incomes of at least $280,000 is about 20 net worth of at least $1 million; less than 5 times that for families with incomes between percent of the high-income families headed by $50,000 and $99,999; more than 80 percent of persons younger than 45 had a net worth that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families 167 3. Distribution of all families, by net worth, 1962 and individuals aged less than 45 years, whereas 1983' nonliquid financial assets are the largest compo- Percent nent of the portfolios of high-income families headed by individuals aged 55 years or more. 1962 Survey of 1983 Survey of NNeett wwoorrtthh ((ddoollllaarrss)) Consumer Consumer The amount of debt declines dramatically from Finances Finances 36 percent of total assets in the youngest group to Negative 11 13 1 percent in the oldest group. High-income fam- 0 5 4 1-3,274 12 10 ilies whose assets are derived mostly from saving 3,275-16,399 17 13 16,400-32,749 15 11 have the largest part of their portfolios in busi- 32,750-81,899 23 22 ness assets. In contrast, high income families 81,900-163,799 10 14 whose assets are mostly from gifts and inheri- 163,800-327,499 4 7 327,500-655,149 1 4 tance have greater amounts of liquid and other 655,150-1,637,899 1 2 1,637,900 or more * 1 financial assets. The data suggest that, even among high-in- Total 100 100 come families, the ownership of some types of 1. Intervals for 1962 net worth have been converted to 1983 dollars. financial assets is not widespread (table 6). For SOURCE. For 1962 survey, Dorothy S. Projector and Gertrude S. example, less than 50 percent of those families Weiss, Survey of Financial Characteristics of Consumers (Board of Governors of the Federal Reserve System, 1966), table A.l. with incomes between $50,000 and $99,999 own publicly traded stock. Even in the highest inhigh. In contrast, differences in the distribution come group, less than 50 percent of the families of occupations by net worth are less pronounced own corporate or Treasury bonds, certificates of in the high-income subgroups than in the whole deposit, or money market deposit accounts. As sample. Self-employed managers on average their income rises, families are increasingly more have greater net worth than comparable manag- likely to own virtually every type of financial ers working for others. This may be misleading, asset with the exception of savings accounts. however, in that employer-provided pension as- The mean holding for each type of financial asset sets, which are not included in these figures, are for those who own it also rises consistently with likely to be significant assets for managers who income. However, the proportion of total assets work for others. Unlike the population as a held in depository institutions, particularly as whole, high-income families whose wealth is certificates of deposit, declines as income rises, from gifts and inheritance are significantly more as do retirement-oriented assets such as individlikely to have very high levels of net worth than ual retirement accounts (IRAs), life insurance, those who accumulate their wealth through sav- and thrift accounts. Business and property assets ing. are held by an increasing percentage of families The distribution of wealth among different as income rises, although their share of total types of assets shows significant variation within assets is constant. the high-income group (table 5). Families in- Data on the concentration of assets show crease their relative holdings of nonliquid finan- similar patterns. Houses, bank accounts, savings cial assets and, to a lesser extent, businesses as bonds, and life insurance are broadly held. The their income rises. The proportion that families most concentrated holdings of assets are in noninvest in every other asset category except non- bank financial assets such as bonds, trust achousing property falls as income rises. Families counts, and stocks. More than 56 percent of the with income between $150,000 and $279,999 ap- municipal bonds held by sampled families are pear to have an anomalously high share of their held by those in the top V2 percent of the income assets invested in businesses. This result, how- distribution. Businesses, IRAs, and thrift acever, is attributable to the extremely large busi- counts are concentrated in the top 10 percent of ness holdings (more than $300 million) of a small the income distribution, but within the highest number of families that fall into this group. Age income decile, they do not appear to be disprodifferences in portfolio composition are also ap- portionately held by the top V2 percent of famparent. The value of the home dominates the ilies. Over all, families in the top 10 percent of portfolios of high-income families headed by the income distribution hold 34 percent of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Federal Reserve Bulletin • March 1986 4. Distribution of high-income families with selected characteristics, by net worth, 1983 Percent Net worth (dollars) MEMO mgn-income family LLeessss characteristic tthhaann 50,000- 100,000- 150,000- 250,000- 500,000- 1,000,000 Total Mean Median 99,999 149,999 249,999 499,999 999,999 or more (dollars) (dollars) 50,000 Family income (dollars) 50,000-99,999 16 18 18 16 19 7 5 100 270,827 143,987 100,000-149,999 5 7 5 8 17 35 24 100 756,821 648,395 150,000-279,999 * 1 * * 16 29 55 100 3,696,705 1,085,957 280,000 or more • * * * 2 16 82 100 5,400,338 2,422,800 Age of head (years) Less than 35 36 26 22 8 5 1 1 100 128,619 69,595 35-44 18 22 14 11 22 8 5 100 294,427 121,932 45-54 9 12 23 14 16 12 14 100 776,780 203,714 55-64 6 12 4 23 21 16 18 100 790,483 306,006 65 or more 2 * 6 8 18 23 43 100 2,730,325 866,567 Occupation of head Not working 6 1 9 6 34 14 30 100 885,602 402,293 Clerical or sales 28 20 14 5 25 5 2 100 192,018 102,389 Craftsman or foreman. 27 21 18 16 7 11 * 100 165,337 102,359 Operative, labor, or service work 36 26 24 15 * * * 100 79,853 73,388 Lawyer, accountant 15 4 11 11 10 17 32 100 815,072 445544,,331166 Health service professional 6 2 22 17 14 27 13 100 628,190 419,670 Banking, insurance, real estate 6 5 12 12 21 19 25 100 11,,559955,,228800 444455,,440022 Other professional or managerial Service sector Not self-employed 19 26 13 17 11 11 4 100 273,609 111,000 Self-employed * 19 15 27 23 1 14 100 1,162,881 218,316 Manufacturing sector Not self-employed 16 23 16 16 16 7 6 100 351,315 135,071 Self-employed * 2 11 8 25 20 33 100 2,312,305 583,528 Source of more than one-half of assets Gifts and inheritance ... * 14 25 17 9 11 25 100 1,038,252 205,732 Saving 14 15 14 14 18 12 13 100 782,763 191,878 All high-income families 13 15 14 14 18 12 14 100 797,662 194,297 total assets and 64 percent of the financial assets greater risks. Responses to two questions proin the total sample. Families in the top V2 percent vide information on the preferences of families of the income distribution hold 19 percent of the regarding tradeoffs between expected return and total assets and 31 percent of the financial assets. risk. The first question involves attitudes toward financial risk. Respondents were asked to choose one of four responses, from "not willing to take ATTITUDES AND BEHAVIOR any financial risks" to "take substantial financial TOWARD SAVINGS risk expecting to earn substantial returns," that best describes the amount of financial risk they One of the advantages of the 1983 survey over are willing to take when they save or make other sources of information on the portfolios of investments. While few families in any income the wealthy is the link it provides between bal- group indicated a willingness to take substantial ance sheet data and responses to attitudinal and financial risk, high-income families were much behavioral questions. The survey asked about more likely than the population as a whole to attitudes toward financial risk and liquidity and report a willingness to take above average or about stock diversification and trading activity, average financial risk to earn higher returns sources of investment advice, and the family's (table 7). Nearly half of all families but less than relationship with its primary depository institu- 20 percent of high-income families indicated that tion. they were not willing to take any financial risk. Greater potential returns are generally avail- The second question concerns attitudes toable only if an investor is willing to assume ward liquidity. Higher returns are generally of- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families 169 5. Composition of balance sheet of high-income families with selected characteristics, 1983 Percent of total assets Type of asset HHiigghh--iinnccoommee ffaammiillyy cchhaarraacctteerriissttiicc Other p N u o b n li - c Liquid Retire- O fin th an er - DDeebbtt ww NN oo ee rrtt tt hh TToottaall House prop- busi- assets ment cial Total erty ness assets assets Family income (dollars) 50,000-99,999 31 21 23 9 6 11 100 16 84 100 100,000-149,999 22 13 22 8 7 28 100 11 89 100 150,000-279,999 7 8 67 2 3 12 100 3 97 100 280,000 or more 8 20 27 4 2 39 100 6 94 100 Age of head (years) Less than 35 42 20 23 7 3 6 100 36 64 100 35-44 33 16 28 7 6 10 100 22 78 100 45-54 17 16 30 5 4 27 100 11 89 100 55-64 18 15 26 7 7 28 100 7 93 100 65 or more 5 17 51 4 2 21 100 1 99 100 Occupation of head Not working 13 20 16 11 2 39 100 8 92 100 Clerical or sales 38 16 2 10 13 22 100 18 82 100 Craftsman or foreman 44 22 12 6 9 7 100 20 80 100 Operative, labor, or service work 48 5 18 18 10 * 100 20 80 100 Lawyer, accountant 17 27 29 5 5 17 100 11 89 100 Health service professional 26 20 24 5 11 13 100 12 88 100 Banking, insurance, real estate 12 27 26 5 3 27 100 6 94 100 Other professional or managerial Service sector Not self-employed 33 16 15 11 8 17 100 14 86 100 Self-employed 10 17 19 4 3 48 100 11 89 100 Manufacturing sector Not self-employed 29 15 14 7 8 27 100 18 82 100 8 Self-employed 9 6 72 3 1 9 100 4 % 100 Source of more than one-half of assets Gifts and inheritance 14 13 16 7 2 48 100 4 96 100 Saving 16 17 38 5 4 20 100 9 91 100 All high-income families 16 16 36 S 4 23 100 9 91 100 fered on assets that have longer maturities, but portfolio shares of housing, other property, and long-term investments may have lower returns if liquid assets than families not willing to take liquidated before maturity. Respondents were risks (table 8). High-income families willing to asked to choose one of four responses, from "not invest in illiquid assets have smaller shares of willing to tie up money at all" to "willing to tie assets in housing and other properties than famup money for a long period of time to earn ilies not willing to tie up money. Those indicating substantial returns." High-income families are a willingness to take substantial risks have larger more likely than other families to say that they debt-to-equity ratios; otherwise, debt-to-equity are willing to invest their savings in illiquid assets ratios are suprisingly similar across risk attiin the expectation of earning higher returns. tudes, suggesting that most families do not in- More than two-thirds of high-income families but crease expected returns by using leverage. Those only 38 percent of the population as a whole unwilling to tie up money also have a higher reported being willing to tie up money for an debt-to-equity ratio. These findings are consistintermediate or long period of time to earn higher ent with the view that most families use debt returns (table 7). Less than 5 percent of high- conservatively to finance the acquisition of real income families are not willing to tie up money at or durable assets. all, whereas 29 percent of all families are not As mentioned, high-income families are more willing to tie up money. likely than other families to own publicly traded The survey shows that, as might be expected, stock, and their holdings of such stocks are a those families willing to tolerate greater financial larger share of total assets than that for the risks, in this case those with high incomes, hold population as a whole. High-income families, proportionately more business assets and smaller especially those with incomes of $100,000 or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 Federal Reserve Bulletin • March 1986 6. Proportion of families holding various assets, mean holdings, and such assets as a proportion of total assets, for all families and for 1982 high-income families Family income (dollars) All families 50,000-99,999 Asset Mean holding Mean percent Mean holding Mean percent Percent Percent of owners of assets for of owners of assets for owning owning (dollars) owners (dollars) owners Property House 64 70,150 68 88 112,320 52 Other, net 19 96,854 30 41 121,899 26 Nonpublic business No management interest 3 133,794 24 8 185,698 19 Management interest 12 305,593 37 24 240,235 37 Liquid assets Checking accounts 79 1,844 11 97 3,464 3 Money market deposit accounts . 9 19,626 15 21 22,720 10 Money market mutual fund accounts 7 19,864 10 24 16,655 7 Savings accounts 62 3,857 15 76 7,791 6 Certificates of deposit 20 24,016 19 35 31,433 12 Retirement assets Individual retirement or Keogh accounts 17 10,395 7 52 10,190 5 Thrift accounts 11 20,879 14 30 26,8% 10 Cash value of whole-life insurance policies 33 9,788 17 50 10,287 5 Other financial assets U.S. savings bonds 21 1,760 5 34 1,986 1 Municipal bonds 2 105,786 10 7 49,662 10 Other bonds 3 59,188 16 9 55,606 16 Publicly traded stock 19 59,158 12 47 39,880 10 Mutual funds 5 25,839 8 19 20,289 8 Trust accounts 4 155,915 22 9 30,260 10 Notes owed to family 5 28,862 18 11 23,008 8 Family income (dollars) 100,000-149,999 150,000-279,999 AAAsssssseeettt Mean holding Mean percent Mean holding Mean percent Percent Percent of owners of assets for of owners of assets for owning (dollars) owners owning (dollars) owners Property House 91 207,932 36 98 272,015 23 Other, net 43 184,245 19 62 463,989 21 Nonpublic business No management interest 26 131,698 15 28 263,437 10 Management interest 52 292,897 25 60 4,155,433 37 Liquid assets Checking accounts 95 8,081 2 99 10,223 1 Money market deposit accounts . 37 46,198 6 34 46,616 3 Money market mutual fund accounts 43 39,195 5 49 54,199 4 Savings accounts 67 13,248 3 61 12,494 1 Certificates of deposit 32 57,179 16 33 47,3% 5 Retirement assets Individual retirement or Keogh accounts 75 26,947 4 84 42,614 3 Thrift accounts 20 99,129 13 50 117,539 10 Cash value of whole-life insurance policies 55 31,179 6 60 36,235 3 Other financial assets U.S. savings bonds 36 22,,774488 25 6,449 1 Municipal bonds 19 139,990 9 25 115,494 7 Other bonds 22 110,235 10 22 92,883 7 Publicly traded stock 61 206,827 17 75 364,051 19 Mutual funds 25 67,255 9 46 51,734 4 Trust accounts 13 233,058 14 28 362,945 16 Notes owed to family 22 63,456 7 18 83,121 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families 171 6. Continued Family income (dollars) Concentration of ownership 280,000 or more Percent Percent AAsssseett Mean holding Mean percent owned by owned by Percent of owners of assets for top 10 top Vi owning (dollars) owners percent percent of income of income distribution distribution Property House 94 465,150 15 30 5 Other, net 71 1,366,957 16 63 27 Nonpublic business No management interest 46 621,279 14 76 31 Management interest 60 2,114,260 33 78 18 Liquid assets Checking accounts 98 34,687 1 40 12 Money market deposit accounts 47 87,913 3 47 11 Money market mutual fund accounts 61 132,334 5 72 28 Savings accounts 57 22,644 1 28 3 Certificates of deposit 37 199,328 7 32 8 Retirement assets Individual retirement or Keogh accounts 74 64,411 2 62 14 Thrift accounts 28 161,719 6 64 10 Cash value of whole-life insurance policies 64 62,071 2 28 6 Other financial assets U.S. savings bonds 36 28,421 • 35 14 Municipal bonds 50 456,723 10 92 56 Other bonds 30 311,981 9 72 28 Publicly traded stock 90 1,046,640 20 85 43 Mutual funds 46 168,268 6 80 31 Trust accounts 25 3,363,447 17 88 69 Notes owed to family 29 190,716 6 47 18 more, are also distinguished from other families or more stocks; the majority of families with by the diversification of their stock portfolios incomes of $100,000 or more that own stocks and their stock trading activity (table 9). The have shares of five or more companies in their majority of all families owning stock have shares stock portfolios. in only one company (10 percent of all families The diflference between high-income families own shares in one company, and 8 percent own and the population as a whole is even more shares in two or more companies). Of families dramatic when stock trading activity is considwith incomes between $50,000 and $99,999 that ered. About 6 percent of all families purchased or own stocks, however, more than half have two sold stocks in the previous year. In contrast, 7. Proportion of high-income families, and of all families, holding various attitudes toward financial risk and liquidity, 19831 Percent Family income (dollars) AAllll AAttttiittuuddee 50,000- 100,000- 150,000- 280,000 ffaammiilliieess 99,999 149,999 279,999 or more Financial risk Take substantial financial risk to earn substantial return 6 8 5 10 6 Take above-average financial risk to earn above-average return 22 25 36 34 11 Take average financial risk to earn average return 55 57 52 46 38 Take no financial risk 17 9 3 5 43 Liquidity Tie up money for long term to earn substantial return 2200 30 22 26 12 Tie up money for intermediate term to earn above-average return 42 48 56 47 26 Tie up money for short term to earn average return 30 17 18 18 30 Do not tie up money at all 5 3 2 2 29 1. Does not report cases in which attitude was not ascertained. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Federal Reserve Bulletin • March 1986 8. Composition of balance sheet of high-income families with various attitudes toward financial risk and liquidity, 1983 Percent of total assets Type of asset AAttttiittuuddee Other p N u o b n li - c Liquid Retire- O fin th an er - DDeebbtt ww NN oo ee rrtt tt hh TToottaall House prop- busi- assets ment cial Total erty assets ness assets Financial risk Take substantial financial risk to earn substantial return 17 9 45 4 4 22 100 12 88 100 Take above-average financial risk to earn above-average return 11 11 56 4 3 16 100 7 93 100 Take average financial risk to earn average return 19 22 23 6 5 26 100 9 91 100 Take no financial risk 26 12 18 13 6 26 100 8 92 100 Liquidity Tie up money for long term to earn substantial return 19 12 26 7 6 31 100 9 91 100 Tie up money for intermediate term to earn above-average return 13 12 46 5 3 21 100 7 93 100 Tie up money for short term to earn average return 19 31 23 6 4 17 100 10 90 100 Do not tie up money at all 31 9 28 6 3 24 100 14 86 100 nearly a quarter of families with incomes be- as the population as a whole to seek financial tween $50,000 and $99,999, about half of families advice from a professional (table 10). About half with incomes between $100,000 and $279,999, of the high-income families reported seeking and almost three-quarters of families with in- financial advice, but the source of advice varies comes of $280,000 or more had stock transac- by income. Accountants and brokers are the tions in the previous year. About 30 percent of sources most frequently used by families with families with incomes between $100,000 and incomes from $50,000 to $279,999. For families $279,999 and nearly half of families with incomes with incomes of $280,000 or more, however, of $280,000 or more had five or more transac- brokers are mentioned most often as a source of tions in the previous year. financial advice. Banks, the primary source of High-income families are about twice as likely advice for the population-as a whole, are cited 9. Distribution of high-income families with given levels of income, and of all families, by selected characteristics of stock investment, 1983 Percent Family income (dollars) IInnvveessttmmeenntt cchhaarraacctteerriissttiicc AAllll 50,000- 100,000- 150,000- 280,000 ffaammiilliieess 99,999 149,999 279,999 or more Number of publicly traded stocks 0 53 39 25 10 81 1 20 13 17 8 10 2-4 16 15 15 19 4 5-9 6 12 15 26 2 10-19 4 12 14 19 1 20 or more 2 10 15 18 1 Total 100 100 100 100 100 Number of times stocks purchased or sold through broker in past year 0 77 53 48 29 94 1 5 5 6 4 1 2-4 11 15 16 17 3 5-9 4 9 9 16 1 10-19 1 10 10 18 1 20 or more 2 8 11 15 * Total 100 100 100 100 100 MEMO: Has brokerage account 28 55 59 80 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families 173 10. Proportion of high-income families, and of all However, for those families that use a particular families, that obtain financial advice from service, the likelihood that they obtain it from various sources, 1983 the same institution as their main checking ac- Percent count is about the same for the high income Family income (dollars) groups as the total sample. Particularly notewor- SSoouurrccee ooff AAllll thy is that a substantial proportion of families aaddvviiccee 50,000- 100,000- 150,000- 280,000 ffaammiilliieess 99,999 149,999 279,999 or more obtain their services at a different financial institution than the one where the main checking Accountant 19 29 30 28 6 Bank 12 10 17 16 12 account is held, suggesting that these families are Broker 23 32 29 38 8 Tax advisor 11 15 25 26 4 willing to forgo the convenience of obtaining a Lawyer 6 17 17 19 5 service at the same location if rates or other Any professional . 47 53 57 53 26 terms are more attractive at a different institution. more frequently than tax advisors and lawyers by the $50,000 to $99,999 income group but become relatively less important as income increases. COMPARISON OF THE SURVEY High-income families choose a commercial WITH FLOW OF FUNDS bank for their main checking account much more frequently than other families, and within the Estimates of the aggregate holdings of assets of high-income group, the frequency increases with U.S. households can be obtained by appropriateincome (table 11). Table 11 also shows that high- ly weighting and summing the amount reported income families are more likely than others to from consumer surveys. It is also possible to use services offered by depository institutions. estimate such holdings from the aggregate data 11. Proportion of high-income families, and of all families, that use various financial institutions for their main checking account, and proportion that use their main checking institution or any institution for selected other services, 1983 Percent Family income (dollars) Institution and service All families 50,000- 100,000- 150,000- 280,000 or 99,999 149,999 279,999 more Institution for main checking account Commercial bank 79 87 91 93 64 Savings institution 14 6 8 5 11 Credit union 3 1 4 Broker 1 1 Use of other services at financial institutions Other checking account Main checking institution 21 30 37 43 9 Any institution 52 58 71 84 21 Individual retirement account Main checking institution 16 19 27 18 5 Any institution 53 75 84 75 17 Certificate of deposit Main checking institution 13 14 14 20 10 Any institution 35 32 33 37 20 Money market or savings account Main checking institution 36 55 39 40 34 Any institution 86 86 93 88 67 Credit card Main checking institution 29 46 49 53 17 Any institution 81 85 95 90 43 Mortgage Main checking institution 13 21 19 21 8 Any institution 74 75 73 69 40 Other loan Main checking institution 22 19 21 18 14 Any institution 66 56 51 63 51 Brokerage or trust account Main checking institution 1 2 5 3 1 Any institution 34 57 70 84 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • March 1986 compiled in the Federal Reserve's flow of funds Table 12 compares four different estimates of accounts. Historically, however, these two aggregate household holdings of deposits, bonds methods have produced significantly different and notes, stocks, and the cash value of life estimates. This is particularly true of financial insurance and home mortgages and other family assets, where survey-based estimates have typi- debts. Two flow of funds calculations were made cally been only half as large as those derived as of the end of 1982, one including nonprofit from flow of funds data. Many reasons have been organizations and one excluding them. Some advanced to explain this discrepancy, but the flow of funds categories were modified to promost commonly given are that (1) the data for the vide comparability with survey data. Two aggreflow of funds household sector overstate hold- gate estimates from the 1983 survey were calcuings of families because the data include trusts lated, one using only the base sample and the and nonprofit organizations and (2) survey-based other with the addition of the high-income subestimates suffer from significant underreporting sample, appropriately weighted. The data shown because of ignorance, intentional withholding of in the first and third columns of table 12 reflect information, and the undersampling or under- the comparisons typically made previously. The weighting of the wealthy. Two recent develop- survey-based estimates of deposits, bonds, and ments offer the potential to test these explana- stocks are only about 50 percent of the flow of tions. First, the special subsample of the wealthy funds estimates. However, when each of these in the 1983 survey potentially allows more accu- estimates is adjusted, as shown in the second and rate weighting of the survey data and fuller fourth columns, the change is striking. Surveysampling of the wealthy. Second, the Flow of based estimates of bonds and stocks are 93 Funds Section of the Federal Reserve has recent- percent and 110 percent, respectively, of those in ly employed information from the Internal Reve- the flow of funds accounts. Data for debts still nue Service and other sources to make estimates show some discrepancy, though less than in the of the financial assets of some trusts, founda- conventional comparison. Data for deposits, tions, and other nonprofit organizations, which however, remain an enigma. The survey estimate can be used to separate the holdings of these is still only 57 percent of the flow of funds entities from those of families. estimate. Currency holdings, which are included in the flow of funds data but not in the survey, total $150 billion at most and thus cannot account 12. Aggregate family assets and liabilities from flow for the full difference. A more detailed compariof funds accounts and from the 1983 Survey of son of the components of deposits (not shown in Consumer Finances Billions of dollars the table) indicates the same discrepancy for each component. One explanation is that the 1983 Survey of Flow of funds Consumer underreporting of "hidden" accounts may still accounts Finances be a problem with consumer surveys. Over all, CCaatteeggoorryy Unad- Ad- Base Total the adjustments offer encouragement to the view justed1 justed2 sa o m nl p y l e sample that flow of funds data and survey data offer comparable estimates of the same phenomena. Assets Deposits3 1,999 1,942 989 1,100 Bonds and notes4 677 425 336 469 Stocks and equities 1,275 1,053 582 982 Life insurance cash value 233 233 256 261 SUMMAR Y OF FINDINGS Liabilities Home mortgages 1,097 1,097 897 927 This article has presented information on the Other debt 635 603 281 334 financial behavior of high-income U.S. families 1. As of December 31, 1982. Includes total household sector. from the 1983 Survey of Consumer Finances. A 2. As of December 31, 1982. Total household sector less estimated special, high-income sample drawn from tax files holdings of nonprofit organizations. 3. Checking, savings, and money market accounts plus individual and added to the survey's randomly drawn base retirement and Keogh accounts, broker call accounts, and certificates sample allows a more accurate examination of of deposit. 4. Bonds estimated at book value. the behavior of the wealthy than was previously Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families 175 available. A significant concentration of wealth Estimates of aggregate family assets based on was found. More than 19 percent of the total data from consumer surveys have historically assets and 34 percent of the financial assets were been about only one-half of estimates compiled estimated to be held by families in the top Vi in the Federal Reserve's flow of funds accounts. percent of the income distribution. Stocks, The 1983 survey offered an opportunity to exambonds, and trust holdings were found to be ine the extent to which this discrepancy might be particularly concentrated among very wealthy explained by undersampling of the wealthy. Estifamilies. The number of households with net mates of aggregate stock and bond holdings from worth of at least $1 million was estimated to have the 1983 survey came within 5 percent of comparisen significantly since a similar survey in 1962, rable flow of funds estimates, offering encourageto almost 2 percent of all families. Somewhat ment to the view that they measure the same surprisingly, except for young households, the phenomena. distribution of families across the various levels of wealth does not appear to be strongly related to age. Families headed by entrepreneurs and by individuals in banking, insurance, and real estate were more likely than families in other occupa- FOOTNOTES tions to earn the highest incomes. The behavior of high-income families with 1. See Robert J. Lampman, The Share of Top Wealth Holders in National Wealth, 1922-56 (Princeton University regard to their savings can be distinguished from Press, 1962); James D. Smith and Stephen D. Franklin, "The that of other families in several ways. High- Concentration of Personal Wealth, 1922-1969," American Economic Review, vol. 64 (May 1974), pp. 162-67; Marvin income families indicated a greater willingness to Schwartz, "Trends in Personal Wealth, 1976-1981," SOI assume risks to earn higher returns, and the Bulletin, vol.3 (Summer 1983), pp. 1-26. greater diversification of their portfolios affords 2. Martynas A. Yeas and Charles A. Lininger, "The them the ability to assume these risks. Unlike Income Survey Development Program: Design Features and Initial Findings," Social Security Bulletin, vol. 44 (November other families, a substantial proportion of high- 1981), pp. 13-19. income families reported having stock transac- 3. Dorothy S. Projector and Gertrude S. Weiss, Survey of tions during the year. Thus, it is not surprising Financial Characteristics of Consumers (Board of Governors of the Federal Reserve System, 1966). that high-income families are more likely to seek 4. The survey defines the family to be any group of investment advice from professionals. Brokers persons living together who are related by marriage, blood, or are the most important source of investment adoption, and any individual living alone or with persons to whom the individual is not related. The head of the family is advice for high-income families. In contrast, defined as the individual living alone, the male of a married other families, who typically own only liquid couple, or the adult in a family with more than one person and assets that are available from depository institu- only one adult. Generally, when there is no married couple and more than one adult, the head is the economically tions, most frequently obtain investment advice dominant person or the one closest to age 45. Adults are from banks. persons aged 18 years or more. Appendixes A and B follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin • March 1986 A PPENDIX A: SURVEY DESIGN ary through July 1983. A total of 5,396 families were solicited as part of the base sample, of The methods employed in selecting the base whom 3,824 (71 percent) participated in the sursample of the 1983 Survey of Consumer Finances vey. A total of 438 of the responding high-income are similar to those used in earlier surveys. A families completed interviews. Interviews were multistage probability design was used to select a done in person and lasted an average of 75 representative sample of all families in the con- minutes. Within each participating family, the tiguous 48 states of the United States, exclusive person selected as respondent was either the of those on military bases and those that have head of the family or, in the case of a married been institutionalized. Participating families couple, the person most knowledgeable about were drawn from 74 sample points in 37 states family finances. Respondents were encouraged and the District of Columbia. to consult other family members or financial The high-income supplement was drawn from records when appropriate. tax files in a manner designed to preserve the The numbers presented in the tables of this privacy of tax information and to shield the article are based on data that differ from the raw identity of sample participants from the govern- sample responses. Particularly for questions of a ment. Applying multifaceted sampling criteria to sensitive nature, respondents are not always the tax returns for 1982, approximately 5,000 willing to answer. As a result, conclusions based high-income families who lived in the 74 geo- only on actual responses can be biased. To graphic sampling units used for the base survey correct for this potential bias, a series of statistiwere selected. The Office of the Comptroller of cal procedures were used with the 1983 survey the Currency, an agency of the Treasury Depart- data to impute missing values. The base sample ment, sent these households a letter asking if and the high-income supplement were handled they wished to join in the survey, with a postcard separately. For the base sample, 159 observasupplied for those choosing to participate. tions that were missing virtually all dollar values Names and addresses of the 459 households that were discarded. To calculate a sampling weight returned postcards were forwarded to the Survey to compensate for any nonrandom exclusion of Research Center of the University of Michigan, observations, a probit equation using informawhich conducted the survey. The Office of the tion available for all observations was fit for the Comptroller of the Currency was also able to included and excluded groups. Imputations were compute appropriate sampling weights for high- made for all missing values of the remaining income participants using formulas supplied by 3,665 base sample observations. All of the 438 the Internal Revenue Service. Field interviewers high-income observations were retained, as they were not told which households were part of the had very few missing values. The weights for the high-income supplement, and the questionnaire 4,103 observations used in constructing the numwas that used for the base sample. The Internal bers in the tables were formed from the high- Revenue Service does not have access to the income weights supplied by the Internal Revenue names of the survey participants. Service, response rates for the different sampling Interviewing for the 1983 survey was carried units, and weights formed from the exclusion of out by the Survey Research Center from Febru- the 159 base sample observations. APPENDIX B: ERRORS OF SAMPLING The results of any survey and the estimates of errors derived from incomplete responses. Bepopulation characteristics derived from it are cause the 1983 sample was drawn from two subject to errors based on the degree to which different sources, additional error may be introthe sample varies from the population (sampling duced if the samples are incorrectly meshed. error), errors arising during the interview, and The only one of these sources of error whose Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Characteristics of High-Income Families 18 B.l Approximate sampling errors of survey results, B.l shows the approximate percentage points of by size of sample1 sampling error associated with various sample Percentage points sizes and results reported from a survey, assuming a confidence level of 95 percent; that is, the Size of sample SSuurrvveeyy rreessuullttss chances are 95 in 100 that the actual value lies ((ppeerrcceenntt)) 3,000 2,000 500 300 100 within a range equal to the reported percentage 50 2.5 2.8 3.6 6.2 10.5 plus or minus the sampling error. The impor- 30 or 70 2.3 2.5 3.3 5.7 9.6 20 or 80 2.0 2.2 2.9 4.9 8.4 tance of the high-income supplement is apparent 10 or 90 1.5 1.7 2.2 3.7 6.3 from sample information given in table B.2, 5 or 95 1.1 1.2 1.6 2.7 4.6 which shows the number of sample observations 1. Two standard errors, 95 percent confidence interval. used for the four income subgroups. The number of observations in the highest income group, for example, rises from 12 to 212 when the base potential impact can be predictably forecast is sample is augmented with the high-income supsampling error. This is a measure of possible plement. The base sample clearly would not offer random deviation of the survey findings resulting enough observations with which to make the from the selection of a particular sample. Table kinds of inferences sought in this article. B.2 Size of base sample and of high-income subsamples of the 1983 Survey of Consumer Finances Number of families Family income (dollars) AAllll SSaammppllee ggrroouupp ffaammiilliieess 50,000- 100,000- 150,000- 280,000 or 99,999 149,999 279,999 more 3,665 269 50 10 12 High-income, from tax files 438 34 70 129 200 4,103 303 120 139 212 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Industrial Production Released for publication January 16 percent of the 1977 average, the index in December was 2.1 percent higher than that of a year Industrial production rose an estimated 0.7 per- earlier. cent in December. This rise followed an upward Production gains occurred in most market revised gain of 0.6 percent in November and a groups for the second consecutive month. The decline of 0.6 percent in October. The prelimi- output of durable consumer goods increased 0.8 nary average for fourth-quarter industrial pro- percent in December following an upward reduction was 1XA percent higher at an annual rate vised gain of 2.9 percent in November. In Dethan the average for the third quarter. At 126.0 cember, autos were assembled at a seasonally TOTAL INDEX 140 - - _ Products — 120 s - V ^ 100 Materials I l l I 1 I 8800 1 1 1 1 1 1 140 MANUFACTURING ~ MATERIALS Durable _ Nondurable •»* 1 111 _ 120 ^ ^ ^ Nondurable ^ 100 Durable \y Energy 1 1 I 1 1 i 80 i i i i 1 I 160 CONSUMER GOODS 140 _ INTERMEDIATE PRODUCTS Business supplies 120 v - / 100 ^ / \y \ Durable 80 Construction supplies 240 FINAL PRODUCTS 200 Defense and space 160 _ Business equipment 140 120 100 Consumer goods J L 80 1979 1981 1983 1985 1979 1981 1983 1985 All series are seasonally adjusted. Latest figures: December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

179 1977 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Group 1985 1985 DDDeeeccc... 111999888444 tttooo DDDeeeccc... Nov. Dec. Aug. Sept. Oct. Nov. Dec. 111999888555 Major market groups Total industrial production 125.1 126.0 .9 .0 -.6 .6 .7 2.1 Products, total 133.1 133.9 1.1 .1 -.8 .8 .6 3.2 Final products 133.4 134.2 1.1 .0 -1.0 1.0 .6 2.7 Consumer goods 122.0 123.0 1.1 .3 -.9 1.1 .8 2.7 Durable 114.6 115.5 2.5 -1.0 -1.4 2.9 .8 2.1 Nondurable 124.8 125.8 .7 .7 -.7 .5 .8 3.0 Business equipment.. 141.9 142.1 1.2 -.6 -1.4 1.2 .2 2.7 Defense and space... 181.1 182.0 .9 1.1 .8 1.2 .5 10.1 Intermediate products.. 132.3 133.2 1.0 .3 -.2 .2 .7 4.6 Construction supplies 121.2 121.9 1.8 -.2 -.5 .4 .6 6.3 Materials 114.2 115.1 .7 -.3 -.2 .2 .8 .4 Major industry groups Manufacturing 128.0 129.0 1.0 -.4 .7 2.5 Durable 129.2 130.0 1.2 -.8 1.1 .6 2.1 Nondurable 126.4 127.6 .2 .2 1.0 3.4 Mining 106.3 106.6 -.4 .1 -1.6 .3 -2.1 Utilities 113.2 114.7 -.3 2.6 .6 1.4 2.8 NOTE. Indexes are seasonally adjusted. adjusted annual rate of 8.1 million units com- percent in December, with gains in most major pared with a 7.8 million rate in November. components except metals. Output of home goods, which includes appli- In industry groups, manufacturing output inances and furniture, rose about 1 percent, the creased 0.8 percent in December to a level 2xh third consecutive strong gain. Nondurable con- percent higher than that of a year earlier. Durasumer goods increased 0.8 percent in December. ble manufacturing rose 0.6 percent, and nondura- The production of business equipment edged up bles increased 1.0 percent in December. The 0.2 percent in December, while defense and output of utilities rose 1.4 percent, but mining space output rose 0.5 percent. Construction sup- output increased only slightly after a sharp deplies and business supplies increased 0.6 and 0.8 cline in November. percent respectively. Materials output rose 0.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Statements to Congress Statement by Emmett J. Rice, Member, Board of have edged up since the early 1980s even though Governors of the Federal Reserve System, be- market rates, which represent costs of funding, fore the Subcommittee on Financial Institutions have fallen substantially. Some of these observand Consumer Affairs of the Committee on ers have concluded that the resistance of credit Banking, Housing, and Urban Affairs, U.S. Sen- card rates to downward pressure indicates that ate, January 28, 1986. credit card users have received inequitable treatment as compared with other borrowers—a premise that underlies both bills. However, the I appreciate the opportunity to appear before the Board believes that the relative stability of credit subcommittee to present the views of the Federal card interest rates reflects the particular cost and Reserve Board on two legislative proposals that revenue characteristics of credit card lending, as would establish nationwide ceilings on credit well as state regulatory constraints on credit card card interest rates. One of these bills, S. 1603, rates, rather than any significant ability of lendwould specify that the rate of interest on any ers to take unfair advantage of credit card borcredit card transaction could not be more than 5 rowers. percentage points higher than the average yield Implicit in the notion that variations in credit on 26-week Treasury bills during the preceding card finance rates should correspond closely to calendar year. The other bill, S. 1922, would changes in market rates is the assumption that limit the interest rate on credit card debt to 4 the cost of funds is a dominant cost factor for percentage points above the rate specified by the suppliers of credit card services. In fact, howev- Internal Revenue Code for calculation of interest er, the cost of funds seems to be much less payable on overdue income tax payments or on important in credit card lending than it is in most income tax refunds. The latter rate is essentially other types of credit. For credit card plans, the an average of the prime rate charged by commer- bulk of total costs consists of operating costs cial banks during a specified period six months incurred for processing transactions, making earlier. monthly billings, and evaluating credit applica- Both bills under review today would set float- tions, along with costs associated with delining ceilings on credit card rates that would super- quent accounts and credit losses. These cost sede generally less restrictive state-imposed lim- factors vary in ways that usually differ from the its. In the past, the Board has commented on pattern followed by changes in market costs of similar proposals, including two bills currently funds. pending in the House of Representatives. In The Federal Reserve System surveys a numdoing so, it has endorsed the principle that—as ber of commercial banks each year to obtain with other types of credit—consumer loans are information about their costs of providing varimost fairly and efficiently allocated when there ous services. From these average cost data, are no regulatory constraints on interest rates. published under the title, Functional Cost Analy- Indeed, the Board has been concerned about the sis, the importance of financing costs and other adverse impact that interest rate ceilings can costs can be compared for credit card operations have on the availability of funds in local credit and for other kinds of bank lending. During the markets and on individuals with limited access to period 1972 through 1984, financing costs avercredit. On frequent occasions, it has stated its aged only about three-tenths of total expenses, opposition to such limits. before taxes, for the credit card function at participating medium- and large-sized banks that Recently, a number of observers have taken issue credit cards. By comparison, financing note that interest rates on bank credit card loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

181 costs at banks in the same size classes accounted account is the net return to card issuers after for more than three-fourths of total costs of the deducting the cost of funds and other expenses. commercial lending function, and for nearly Again, the Functional Costs Analysis statistics nine-tenths of total costs of mortgage lending. for respondent banks provide some basis for Studies of credit card operations at retailers comparison among types of lending. Data for the likewise have shown that funding costs are less period 1972 through 1984 show that—in contrast important than operating and collection costs. to the higher gross finance rate charged by banks But there is an even more striking difference on credit card indebtedness—average earnings between credit card loans and other types of before taxes were substantially lower as a prolending. The key characteristic of revolving cred- portion of credit outstanding for bank credit card it plans is that terms of repayment are quite operations than they were for commercial or flexible and actual repayments in any given peri- mortgage lending. These figures, of course, inod are largely at the discretion of the account clude periods of relatively low or negative net holder. Excluding cash advances, which typical- returns on credit card lending, such as in 1980, ly earn finance charges from the transaction and periods such as 1984, when the net yield for date, most credit card plans charge interest only the credit card function exceeded the net yield if card holders pay less than the full amount of for commercial loans and mortgage loans. Thus, the outstanding balance by the end of the grace the evidence suggests that, on average, credit period. Thus, unlike other kinds of credit, the card rates have remained well in line with costs way the credit card holder uses the account as compared with other types of commercial determines how much—and, indeed, whether bank lending. Accordingly, the data on the relaany—interest income is earned by the card issu- tive profitability of bank credit cards and other er. types of bank lending do not support the view There is evidence that some credit card hold- that credit card issuers have been able to take ers—perhaps nearly 10 percent at any one time— advantage of credit card borrowers. do not use their credit cards at all. These non- But while there is no reason to think that credit users produce no revenue from finance charges card rates have been unduly high on average that would offset costs incurred by card issuers over time, the fact remains that—in contrast to in establishing and maintaining their accounts; other loan rates—credit card rates have rehowever, many bank credit card issuers now mained essentially unchanged despite substantial charge card holders an annual fee. Of card hold- variation in the cost of funds. Partly, as noted ers who use their credit cards, some surveys earlier, the relative stability of credit card rates indicate that roughly half of them usually pay off reflects the lesser role of financing expense as a the entire balance when they are billed. Custom- share of overall costs. However, this stability ers of this type also generate no finance charge also reflects other special features of the credit revenue to offset costs of processing, financing, card business. One of these features is the exisand billing; however, bank credit card issuers do tence of state-established statutory ceilings on derive some income from fees that merchants interest rates. pay to help defray processing costs, and, in many In all but a few states, 18 percent per year was cases, from annual card holder fees. the upper limit on rates that card issuers could These considerations indicate that the behav- charge on credit card balances in the late 1970s ior of credit card rates cannot be evaluated when other interest rates were beginning to adequately by simply comparing them with a climb. Judging from the Functional Cost Analymarket interest rate. Doing so would overlook sis, average returns to banks on credit card fundamental differences in the behavior of costs operations in most prior years had been below, and revenues between credit card operations and or no higher than, net earnings on other major other types of lending—namely, that funding forms of lending. costs are a lower share of total costs for credit Then, when market costs of funds rose sharply card lending, and that some credit card borrow- between 1979 and 1981 while credit card rates ers pay little interest, if any. were restrained by the ceilings, net returns be- One measure that takes these differences into came negative on credit card plans at banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 1986 Many diversified creditors, such as commercial tions, may outweigh any rate disadvantage. banks, tightened their lending standards and de- Whatever the case, credit card debt has expandemphasized their credit card business in favor of ed rapidly for more than two years—a sign that other types of lending that seemed more profit- consumers view credit card use as an attractive able at the time. Some institutions stopped ac- source of short-term financing despite what cepting new credit card accounts. many observers regard as high rates of interest. Now that credit card programs generally have Furthermore, the recent emergence of abovebecome profitable again, many credit card issu- average returns to bank credit card lending may ers have intensified their efforts to market new not lead to an immediate, widespread reduction credit card accounts and to encourage account in finance rates on credit card borrowing. Credit use. That is, credit card issuers in most cases card issuers may be uncertain whether such have responded to falling costs of funding their favorable conditions will persist. Also, instead of operations, mainly by increasing the availability offering lower finance rates, card issuers may of credit card accounts rather than by reducing seek to compete by easing credit standards finance rates. This move has helped to reverse somewhat, by making nonrate credit terms more the earlier curtailment of credit card lending that attractive, or by offering other products and card issuers undertook when market rates moved services. up and many lenders were unable to adjust their In this connection, one should keep in mind income to match the rising costs of funding arid that finance rates on credit cards already have operations. Thus, it appears that much of the shown some tendency to decline. The average inertia in credit card interest rates has been finance rate on bank credit card plans at reportattributable to the influence of restrictive rate ing banks moved down 25 basis points, on balceilings imposed by the states. ance, during 1985; at year-end, it was the lowest Of course, rate ceilings in the credit card in more than three years. In the course of readmarket are considerably less pervasive now than justing their finance rates, some credit card issuthey were before 1980 because a number of ers have adopted floating finance rates of the states have raised or removed applicable rate general kind proposed by the legislation under ceilings or have permitted lenders to charge review. However, those adjustable rates often annual fees for credit card accounts. These have been paired with the imposition of annual changes, besides the declines in the cost of credit card fees. funds, contributed to the rise in the overall net An effort to establish a federally mandated return, before taxes, on credit card plans at ceiling on credit card interest rates would likely respondent banks to about 316 percent in 1984. encounter substantial difficulties. From experi- So it may be that a growing number of credit card ence with the imposition of credit controls in issuers now are in a position to consider offering 1980 and the sharp, unexpected contraction in somewhat lower finance rates to credit card consumer spending that accompanied them, we borrowers as some institutions already have know that regulatory measures can have unpredone. dictable and unwanted consequences. Setting a Factors on the demand side of the market also federal ceiling on credit card rates below those may have been conducive to the observed stabil- ceilings that currently prevail in many states ity of interest rates on credit card plans. As noted would likely reduce the amount of credit made earlier, a substantial share of card holders either available, forcing consumers to rely instead on use their credit cards infrequently or usually pay less convenient and possibly more expensive off their credit card balances promptly. These substitutes, or to lose access to credit at any rate. card holders are thus likely to base their choice Moreover, such a curtailment would be apt to fall of credit card plans on features other than the most heavily on less affluent borrowers with level of finance charges. relatively limited access to other sources of Also, even for card holders who "roll over" credit. The current ceiling for credit card rates their balances and pay finance charges, other under the proposed bills would be in the vicinity characteristics of credit card borrowing, such as of 13 to 14 percent, well below the finance rates convenience and suitability for small transac- that have been typical since credit cards emerged Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 183 in the early 1960s as a major method of consumer adequate supply of credit card services is availfinancing. able from lenders located there. Of course, these Furthermore, the imposition of stringent rate states retain the authority to lower or restore ceilings might be countered by a tightening of ceilings if convincing evidence of excessive rates nonrate credit card terms by card issuers, for appeared. example, by increasing annual fees, by levying Besides the issue of the desirability of federal processing charges on each credit card purchase rate regulations that is central to both proposals or cash advance, and by stiffening penalties for under review, there are certain other aspects of late payments or for exceeding the authorized S. 1922 about which the Board would like to credit limit. Some card issuers also might begin comment. Section 3 would amend the Truth in applying the reduced finance charges from the Lending Act to require that credit card issuers date of purchase, when permitted, rather than clearly and conspicuously disclose on initial apafter the grace period expires, and might seek to plications for credit cards the annual percentage increase the discount fees charged to merchants rate to be charged for credit extensions made who submit credit card vouchers to them for with the credit card—or the means of determinpayment. ing that rate—and any annual or other fee im- Turning to the specific provisions of the two posed for issuing or using the credit card. bills before the Congress, it should be empha- Many of us routinely receive credit card solicisized that credit cards are issued by a broad tations in the mail inviting us to apply for a variety of retail merchants and financial institu- particular credit card program. Generally, credit tions that differ both as to their sources of card mail solicitations are considered advertisefunding and their liability structures. Under ments under the Truth in Lending Act. If a credit these circumstances, a single index rate would be card issuer includes in an advertisement any of unlikely to mirror changes in costs for such a the specific credit cost terms of its credit card diverse array of card issuers. In any case, short- program, then current disclosure rules under term rates, such as those on Treasury bills, Truth in Lending and the Federal Reserve fluctuate a good deal more widely than do costs Board's Regulation Z require the card issuer to of funds of most lenders. They do so because a clearly disclose at that time additional important lender's overall average cost of funds at any credit cost information—for example, minimum point is a blend of current interest rates and rates finance charges, transaction charges, memberon previously issued liabilities, and because mar- ship or participation fees, and any annual perket rates on longer-term liabilities—which usu- centage rate that may be applied. However, if no ally make up part of the cost of funds—typically cost information is contained in the mail solicitavary less than do shorter-term rates. tion, the card issuer is not now required to Another question at issue is whether any regu- include the Truth in Lending disclosures. In such lation of credit card interest rates is more appro- cases, the proposed disclosure requirements priately a matter for federal or for state interven- probably would aid consumers in comparing tion. In contrast to efforts at the federal level to offers to apply for particular credit card proassure the safety and soundness of financial grams. institutions, the establishment of interest rate S. 1922 also would require each credit card ceilings on consumer loans has long been a state issuer to report to the Board on a monthly basis prerogative, and one that the Board feels should the average annual percentage rate and any annot be preempted. In recent years, virtually nual or other fee applicable during the preceding every state has reviewed and overhauled its laws month. While this idea may seem appealing on regulating consumer interest rates. After study- initial examination, there are a number of quesing the situation in their own jurisdictions, many tions about its practicality and cost that would of these states have opted to raise or remove need to be considered. In that connection, the interest rate ceilings for credit card borrowings. Federal Reserve currently is analyzing the re- The Board respects the collective judgment of a sults of a study that is being conducted at the growing number of states that higher—not low- request of the Congress to measure the benefits er—ceilings are appropriate to assure that an of providing consumers with comparative cost Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 1986 information about closed-end credit. The find- about current regulatory matters in the area of ings from this project will provide a means of consumer financial affairs. Members of the better evaluating the use that consumers make of Council meet three times a year for IVi-day published lists of comparative rate data in the sessions to consult with the Board on various process of obtaining credit. In view of the costs questions related to the Board's consumer finanthat would be associated with the collection and cial protection responsibilities. As an outside dissemination of comprehensive information advisory body, the Council has no independent about credit card interest rates and fees, the staff; as needed, it draws on Board staff support. Board suggests that the Congress consider post- Therefore, the duties assigned to the Council poning any action in this area until the results of under section 4 of S. 1922, requiring a substantial the demonstration project are available. information-gathering and analysis effort, would Section 4 of S. 1922 would direct the Consum- go well beyond the Council's capabilities and er Advisory Council of the Federal Reserve perhaps would even be inconsistent with its Board to transmit a report to the Congress each consultative nature. year describing and analyzing several detailed In closing, I would like to reemphasize the aspects of credit card markets. Among the mat- Board's conviction that financial markets distribters to be addressed would be the costs and risks ute credit most efficiently and productively when of issuing credit cards, the proportion of credit interest rates are determined in markets that are card customers whose cards have been revoked as free from artificial restraints as possible. In for nonpayment or delinquent payments, reve- the credit card business, the balance of the nues received by credit card issuers derived from evidence suggests that revenues have stayed well finance charges, annual fees, and application in line with total costs, notwithstanding the minifees, and the impact of the statutory rate ceiling mal variation in finance rates. Furthermore, in on consumers and card issuers. The preparation recent months there has been some tendency for of such a comprehensive document, however, credit card rates to decline. Efforts to constrain would far exceed the range of the Council's own credit card rates through federal regulation are resources. likely to have undesirable side effects in the form As you may know, the Consumer Advisory of reduced credit availability, especially for Council is an independent advisory group to the those consumers that these bills would seek to Board. It consists of 30 individuals drawn from aid. Moreover, they may encourage less efficient the financial services industry, the academic means of offsetting costs of credit card operacommunity, state government offices, consumer tions. Accordingly, the Board concludes that it advocacy groups, legal aid offices, and communi- would be inappropriate to impose a federal ceilty organizations. Its function is to provide the ing on credit card rates. • Board with a cross section of informed opinion Statement by Paul A. Volcker, Chairman, Board together in one convenient place, for congresof Governors of the Federal Reserve System, sional and public use, information about our before the Subcommittee on Domestic Monetary spending results and outlook, and about our Policy of the Committee on Banking, Finance budgetary process in some detail. I hope that it and Urban Affairs, U.S. House of Representa- will prove helpful to the committee, and I would tives, January 29, 1986. greatly welcome any comments and suggestions that you may have to make next year's edition I appreciate the opportunity to appear before this even more useful. We have also supplied the committee to discuss issues involved in the bud- committee with answers to the specific questions getary treatment and procedures of the Federal raised in Chairman Fauntroy's letter of Novem- Reserve System. ber 15, 1985. I request that the Budget Review The committee has been given copies of our and those lengthy materials be included in the new publication entitled Annual Report: Budget record. Review. That document is intended to bring I might also point out to the committee that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 185 highly detailed information about expenses, em- meet the highest standards of accountability in ployment, and productivity—service by service, financial reporting. office by office, and quarter by quarter—has for That is why I welcome your desire to have some years been available publicly in our so- these oversight hearings to provide a better uncalled PACS (Planning and Control System) re- derstanding of how our expenditure process ports. These PACS reports provide the detailed works, to take a critical look at how and why we informational base for our internal planning and spend more than a billion dollars a year, and to control system, and I would be glad to provide assure that adequate information and forums are copies to the committee if you so desire. More- available to permit appropriate congressional over, budgets for both the Board of Governors oversight and public understanding of Federal and the Reserve Banks have for a number of Reserve spending. years been discussed and approved in open In approaching the problem of accountability, meetings of the Board. we share the common ground that the Federal I will not claim special expertise about the Reserve is a creature of the Congress, and financial reports that are regularly provided by through the Congress, ultimately accountable to government agencies as part of the regular bud- the American public. At the same time, the get process of the executive branch, or how burden of my comments this morning is that the those reports compare in detail, volume, and legitimate objectives of disclosure and accountclarity with ours. What I do submit is that there ability can be best achieved within a framework is not now, and never has been, a real question of independent budgetary treatment and reportabout the availability of detailed information ing for the Federal Reserve. about Federal Reserve spending patterns. In that Federal Reserve net earnings, as you know, respect, our operations are an "open book." exceed our expenditures many times over. Those Rather, the questions we are dealing with this net earnings are largely paid into the Treasury morning are conceptual in nature—the appropri- and are properly reflected as a receipt in the U.S. ate treatment of the central bank's operational budget. Thus, the budget already clearly reflects budget within the framework of the Federal the influence of Federal Reserve operations on Reserve's overall purposes and the desired de- the overall fiscal position of the government. The gree of insulation from narrow political pres- question that has been raised is whether the U.S. sures. budget should also include details of our expen- The appropriate budgetary treatment of the ditures and receipts. Federal Reserve has been carefully considered I feel certain that integrating Federal Reserve by the Congress and outside commissions a expenditures and receipts into the federal budnumber of times. These inquiries have consis- get, contrary to our entire history and earlier tently concluded that our budget should be main- congressional decisions, would be interpreted as tained outside of executive review and determi- a clear step toward executive influence and connation and of the appropriation process. In trol over the central bank. As a practical matter, substance, the Congress has repeatedly reached I am also convinced that, in the end, the effect the judgment that the Federal Reserve's func- would be to make our operations less intelligible tional independence is inextricably intertwined and "transparent" rather than more. At the same with its budgetary independence. time, I believe we can better achieve your objec- I believe that the ability of the Federal Reserve tives and ours by working with the Congress to to conduct its monetary policy with relative improve procedures for reporting and oversight freedom from day-to-day political pressure, as within the present framework. provided and intended by the Congress, has served the nation well over the years. I realize, Mr. Chairman, that you and other members of THE FEDERAL RESERVE AS A this committee have also been sensitive to those SELF-FUNDING CENTRAL BANK concerns. For our part, you can be sure that the Federal Reserve clearly recognizes that our inde- The Congress established a permanent central pendence carries with it the responsibility to bank for the United States much later in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 1986 nation's history than has been the case in most We all feel that the Congressional reasoning of 60 other industrialized countries. To a considerable years ago which purposely insulated the Federal Reserve from immediate political pressures is even more extent this action reflected long and strongly felt valid today. It is probably more difficult today than 60 concerns about concentrations of economic powyears ago for the Congress to take a long view that er. At the same time, the Congress clearly may well appear to conflict with immediate problems. wished to insulate the Federal Reserve from And yet, this is precisely what the Federal Reserve partisan politics. These concerns led to the cre- must do each day and why we feel that its independence must be preserved. ation of a regional system, with day-to-day oper- We all agree from a combined total of many years of ational responsibilities diffused among 12 Reexperience in government that the independence of the serve Banks, each with its own budget and board Federal Reserve would inexorably be eroded by the of directors drawn from the private sector. Poli- appropriations process exposing our country to great cies for the entire system are set by the Board of potential danger.1 Governors in Washington, and the Board also supervises the operations and approves the bud- I should also point out that the budgetary gets of the Banks. This basic structure has been status of the Federal Reserve is not unique; it is little changed since the original act was approved indeed the norm for central banks around the in 1913. The act always contemplated that the world. For instance, whatever other arrange- System's operations, funding, and expenditures ments surround their functional independence, be independent of the executive budget and of all the central banks of the G-10 countries fithe congressional appropriations processes re- nance their expenditures out of their own inquired of most government agencies. come. Typically, they return all or major parts of In deciding upon these matters originally, the their income in excess of expenses to the nation- Congress plainly felt that the ability to make al treasury, as is the case in the United States, considered monetary judgments, independent of but in no instance is a budget statement for the day-to-day pressures of the political arena, re- central bank included in the budget for the cenquired freedom from outside fiscal control. tral government. That approach by other major These concerns remained evident in later revi- industrialized countries reflects widely held consions of the Federal Reserve Act in 1933 and cerns about assuring operational autonomy for 1935, which cast the System's responsibilities in central banks. (The financing of the central essentially the form that they take today. banks of other major countries is discussed in The desirability of independent funding of the more detail in the submission to the committee.) Federal Reserve and freedom from potential I recognize and appreciate that a recent prodomination by the executive branch has been posal—H.R. 1659—apparently intends that we reaffirmed each time questions have been raised "only" submit expenditure and receipt informasince then. Thus such treatment was clarified in tion to the executive branch for inclusion in the the Banking Acts of 1933 and 1935. Congression- budget totals and would not necessarily disturb al inquiries in 1964 and 1975 did not lead to any the present method of Federal Reserve funding changes. The President's Commission on Budget or expense control. My concern, nonetheless, is Concepts in 1967 and the President's Commis- that such proposed inclusion of Federal Reserve sion on Financial Structure and Regulation (the expenditures within the executive's budget docu- Hunt Commission) in 1971 both considered the ment would easily imply further steps—that it matter as part of their congressionally sponsored would indeed be a first step down a slippery mission and recommended nt> change in budget- slope, encouraging those who clearly do wish to ary treatment, in both cases noting its relevance impair our functional independence by bringing to wider questions of functional independence. It has not been a partisan or a parochial 1. Federal Reserve Reform and Audit, Hearings before the position. For instance, in 1975 six former Secre- Senate Committee on Banking, Housing, and Urban Affairs taries of the Treasury, in a letter to Senator on S. 2285 and S. 2509, 94 Cong., 1 Sess. (Government Proxmire, stressed how important they felt it was Printing Office, 1976), p. 140. (The history of Federal Reserve budgetary independence is more fully discussed in the materithat the Federal Reserve retain its status as a als submitted to the committee in response to Chairman nonappropriated agency in these words: Fauntroy's letter of November 15, 1985.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 187 the System more fully into the budgetary and Federal Reserve spending has increased at an appropriation process or otherwise. average annual rate of about 0.8 percent in constant dollars (chart l).2 Over the same period, total System employment has fallen about 6.0 FEDERAL RESERVE SYSTEM BUDGET percent, from roughly 26,632 to 25,047. Meanwhile, the principal measures of operational To help place this issue in context, I would like work load have increased significantly, for examto summarize the existing budget process and ple, 42 percent in the case of check collections, results. our most costly service, and almost 280 percent in the case of electronic fund transfers. At the The Process. The Federal Reserve has inten- same time, as a result of the Monetary Control sive planning, budget, and control processes for Act, we now receive regular reports from some both the Reserve Banks and the Board of Gover- 24,000 banks and thrift institutions, compared nors. They are summarized in our new Budget with 6,000 a decade ago. Review in appendixes 3.A and 4.A respectively. The long-term decline in Federal Reserve em- Those processes reflect at each step strong ployment in the face of persistent increases in concern with both efficiency and economy. Gen- output is a direct reflection of our success in eral guidelines for System spending are initially improving productivity in the operating functions approved by the Board of Governors on the basis of the Federal Reserve Banks. I might also note of analyses and projections of expected work that our operating expenditures over the decade loads, trends in prices and wages, and anticipat- have increased much more slowly than those of ed productivity gains in each area of Federal the government as a whole or those of the Reserve responsibility. Within that framework, commercial banking system. each of the Reserve Banks, working with directors drawn from the private sector and subject to 1985 Results and the 1986 Budget. In Decemtheir approval, develops detailed budget plans ber, the Federal Reserve Banks and the Board of for the following calendar year. Those budgets Governors budgeted total operating expenditures are approved by the Bank Directors, carefully of approximately $1.27 billion for calendar year reviewed by the staff of the Board of Governors, 1986, up 5.5 percent from 1985.3 Of this amount, and finally approved by the Board itself in public some $919 million—an increase of less than 5 meetings. percent—reflects operational services to finan- I would emphasize too that more than 50 cial institutions, the public, and government percent of Reserve Bank budgets are for services agencies. The great bulk of those expenses is that are provided to the private sector or govern- recovered by fees or reimbursements. The rement agencies, and fees and reimbursements for maining $350 million is accounted for by policy these services amount to fully 57 percent of all and statistical functions and by supervision and our spending. As a matter of law (the Monetary regulation. The sharpest increases—some 10.7 Control Act of 1980) and principle, most of these percent—have been budgeted for the latter funcservices must meet a clear market test. Specifi- tion, reflecting a deliberate effort to improve cally, all expenses (including overhead and the both our analytic work and examining manpower imputed cost of capital and taxes) involved in resources in the light of current needs. providing "priced" services are covered by charges to users. The market for correspondent banking services, in which we operate in provid- 2. The attachments to this statement are available on ing those services, is highly competitive, provid- request from Publications Services, Board of Governors of ing a strong and direct incentive to maintain our the Federal Reserve System, Washington, D.C. 20551. efficiency. 3. This amount does not include another $187 million, which will be paid to the U.S. Bureau of Engraving and Printing for Federal Reserve notes to be distributed to the The Results Over Time. In the end, the effec- public. This sum is not included in the analyses of Federal Reserve spending because it represents a reimbursement to tiveness of the process must be measured by the Bureau for printing currency, the cost of which we do not results. In the 10-year period from 1976 to 1986 manage or control. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Federal Reserve Bulletin • March 1986 As I indicated a few moments ago, under the other basis, given that the production of these provisions of the Monetary Control Act, the services is capital intensive and that our prices, Federal Reserve must aim to recover the full cost by law, must be set in a manner consistent with of most services, including an adjustment for methods used by private sector providers. imputed taxes and the cost of capital that it Specifically, expensing computers and other makes available to depository institutions. In this equipment in the year acquired—rather than area—clearing checks, providing wire transfers, following GAAP—would result in widely fluctuand other payment services—the Federal Re- ating costs for Federal Reserve services, renderserve effectively has to compete in terms of price ing the pricing approach stipulated by the Moneand quality with other actual and potential sup- tary Control Act practically impossible. More pliers of such services. In 1985 the Federal generally, from the standpoint of budgetary man- Reserve met this test and recovered both costs of agement of both the Board of Governors and the priced services and imputed taxes and profits. various Federal Reserve Banks—and the com- We expect to do likewise in 1986, when such prehensibility of those budgets to the public— revenue is estimated to total $617 million. And GAAP accounting seems more sensible. we are pleased to report that we shall do so with In that connection, I would note that the small decreases in prices, averaging 1.5 percent. GAAP approach used by the Federal Reserve is The increased expenditures in this area of our particularly recommended by the accounting work entirely reflect higher projected volumes. profession for organizations that must cost and As fiscal agent for the U.S. government, the price products. I would refer you, for instance, Federal Reserve is responsible for issuing and to a report by the Comptroller General of the redeeming a variety of Treasury and other gov- United States to the Senate Banking Committee ernment debt instruments ranging from savings reviewing our pricing practices and to a similar bonds and food stamps to large-denomination report by Arthur Andersen & Co.4 Indeed, in the Treasury bills, notes, and bonds. We have in the light of the trend of thinking in the accounting past been reimbursed in whole or in part for the profession, "cash outlay" accounting for capital direct cost of these services by other agencies expenditures would appear as retrogressive.5 but not for allocated overhead. Our budgetary cycle is also on a calendar rather than on a government fiscal year basis. Summary information is provided by the Board TECHNICAL BUDGET ISSUES of Governors about its expenditures (but not Our Federal Reserve budgeting generally follows Reserve Bank expenditures) to the Office of business accounting principles, including depre- Management and Budget for inclusion, without ciation of capital assets. The budgets are on a changes, in an appendix to the federal budget. calendar-year basis. While much forward plan- The Office of Management and Budget makes its ning is done, we have not found it useful to own estimate of the amount of funds that the regularly make comprehensive multiyear expenditure forecasts—which would essentially in- 4. Comptroller General of the United States, Report to the volve arbitrary assumptions about price and Chairman, Senate Committee on Banking, Housing, and wage trends—other than for major capital pro- Urban Affairs, An Examination of Concerns Expressed About the Federal Reserve's Pricing of Check Clearing jects. Activities, January 14, 1985; and Arthur Anderson & Co., With respect to accounting conventions, the Federal Reserve System: Report on Priced Services Activi- Federal Reserve is a "business-like" organiza- ties. 5. The General Accounting Office (GAO) encourages detion that basically keeps its books as would a preciation accounting and amortization for all federal funcprivate concern—that is, using generally accept- tions and activities, and requires it for financial statements of ed accounting principles (GAAP). The primary (a) business-like operations and (b) activities that recover costs from reimbursements or user charges. See GAO Policy difference in approach from federal budget conand Procedures Manual for Guidance of Federal Agencies, cepts is that the Federal Reserve capitalizes and Title 2—Accounting, November 14, 1984 (Government Printdepreciates major assets rather than expensing ing Office, 1984); and U.S. General Accounting Office, Comptroller General of the United States, Managing the them in the year that they are acquired. Indeed, Cost of Government: Building an Effective Financial Manwe could not sensibly price our services on any agement Structure, vol. 1, GAO/AFMD-85-35 (GPO, 1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 189 Federal Reserve will return to the Treasury to otherwise, there has been enough focus on our estimate total federal revenues. Those funds, "housekeeping" responsibilities—running an amounting to some $17.8 billion in 1985, mainly economical, cost-effective operation. Approprireflect the earnings on the holdings of securities ate congressional oversight of Federal Reserve in the System Open Market Account and loans spending can, and should, contribute to that through the discount window. They are thus a process. I believe this oversight can be done in a by-product of our monetary policy responsibil- manner that does not raise questions about our ities and dependent upon market interest rates functional independence or the independence of and specific monetary policy decisions that can- our budgetary processes, but which contributes not in practice be forecast very far ahead with more fully to public understanding. any reliability. Indeed, such projections would To those ends, in testimony before the Joint be wholly misleading if interpreted as an indica- Economic Committee last year, I suggested three tion of future interest rates or of monetary policy steps to help improve the process: decisions. 1. That within the Federal Reserve, we take steps to assure that the mass of information now POLICY CONCERNS available in several documents about our spending and budgetary process be presented at times Changing these budgetary reporting procedures and in a manner more accessible to public and to conform to the conventions of the U.S. budget congressional oversight. We have now prepared document would entail certain transitional and a comprehensive document, focusing on our ongoing expenses because we would almost cer- current budget, placing that budget in appropritainly have to maintain our books on two differ- ate historical context, and reviewing our budgetent accounting bases. However, my greatest ary procedures. I hope that the result will be to concerns about changing the budgetary treat- make this material more readily available and ment of the Federal Reserve have little to do with easily understandable. We would, of course, be technical considerations—such as whether we prepared to make any changes in format or in use a calendar year or fiscal year, whether our scope should that appear desirable in the light of expenditures appear in some obscure part of the experience. appendix to the budget, or whether we use a 2. That we retain our present accounting forparticular accounting standard. In the end, the mat, using GAAP concepts rather than shifting to question revolves around the consistency of cer- the federal budget accounting conventions. My tain changes with the fundamental idea of a strong belief is that Federal Reserve spending is central bank insulated from day-to-day political likely to receive more, and better informed, and partisan pressures in the conduct of its congressional and public scrutiny as part of a monetary operations. separate report consistent with GAAP account- We plainly recognize our obligation to report ing. to the Congress fully both on our policies and on The net fiscal impact of Federal Reserve operour operations in a variety of forms and forums. ations is already fully and accurately reported in My general sense is that the arrangements for the budget. Forcing the full array of supporting such reporting have, in most respects, worked material into the recesses and precise format of a relatively well over the years. As you know, as a governmental budget presentation developed for matter of law, I testify at least four times each quite different purposes—a presentation that alyear before the Congress on the general conduct ready runs to thousands of pages—could hardly of monetary policy; in practice it is much more be a service to public understanding. It would, I frequent. Altogether, other Governors, Federal suspect, become just another hard-to-understand Reserve officials, and I appeared formally before "special analysis," alongside a number of oththe Congress on 34 occasions in 1984, and 52 ers, virtually incomprehensible to those untutimes in 1985, testifying on a variety of subjects. tored in the intricacies of budget accounting for One question in my mind, and apparently that government or government-sponsored enterof others, is whether in testimony, in reports, or prises. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin • March 1986 3. Finally, that the appropriate oversight com- I realize that some may not share my concerns mittees in the House and the Senate might wish about maintaining the independence of the Fedto resume a practice, followed for some years in eral Reserve, and look upon even seemingly the Senate, of annual hearings directed specifi- small changes to incorporate the Federal Recally toward the Federal Reserve budget and serve budget within the overall federal budget internal management. I believe we, as an organi- document as a welcome step toward further zation, benefited from the procedure in the past. measures to achieve executive or congressional In that context, I welcome this hearing and the control of our budget. Therein lies, to my mind, planned companion hearing on the specifics of the risk and the danger, for ultimately detailed our expenditures as constructive steps that will control of the budget means control of policy. provide for better understanding and account- We want to operate with maximum efficiency, ability of our budget and budget process. and in that respect we welcome your oversight. In closing, Mr. Chairman, I want to reempha- More broadly, we also welcome the challenge to size that I believe our goals are congruent—to explain and to review our policies with you. We achieve effective cost containment and appropri- have, together, the ability to do both without ate accountability. I believe that those goals can impairing the basic framework set out in the be achieved in a way that is fully consistent with original Federal Reserve Act and maintained our traditional role in government. over many decades. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

191 Announcements APPOINTMENT OF NEW MEMBERS TO Senior Vice President, Mr. Cassidy is responsible for Chase's Metropolitan Community Bank, which pro- CONSUMER ADVISORY COUNCIL vides financial services to consumers, small and medium-sized businesses, nonprofit organizations, and mu- The Federal Reserve Board on January 27, 1986, nicipalities in the New York metropolitan area. Mr. named twelve new members to its Consumer Cassidy is Vice Chairman of the Executive Committee Advisory Council to replace members whose of the Branch Administration Division of the American Bankers Association and of the Executive Comterms are expiring or who resigned, and designatmittee of the Consumer Banking Division of the New ed a new chairman and vice chairman of the York State Bankers Association. He served as a Council. member of the Consumer Issues Task Force of the The Council advises the Board in the field of American Bankers Association and currently is a consumer financial protection laws and other member of the National Advisory Committee of the Federal Home Loan Mortgage Corporation. consumer-related matters. Its 30 members come from all parts of the country and include a broad representation of consumer and financial indus- Neil J. Fogarty, Jersey City, New Jersey, has been with Hudson County Legal Services for eight years, try interests. specializing in consumer credit law. He is also the Margaret M. Murphy will chair the Council President of the Consumers League of New Jersey. and succeeds Timothy D. Marrinan, whose term Mr. Fogarty chairs the Consumer Task Force of Legal expired in December 1985. Ms. Murphy is Asso- Services of New Jersey. He holds a law degree from ciate Professor and Director of the Columbia New York University. Center at Johns Hopkins University, Columbia, Maryland. Her term runs through December Kenneth A. Hall, Jackson, Mississippi, recently assumed the presidency of Great Southern National 1986. Bank of Jackson. He was formerly the President of Lawrence S. Okinaga was named vice chair- First Bank in McComb, Mississippi. As Executive man to succeed Thomas L. Clark, Jr., whose Vice President at First Bank, he was in charge of all term expired in December 1985. Mr. Okinaga is a lending activity including consumer credit. Previously, partner with the law firm of Carl smith, Carl- as Vice President of First National Bank of Commerce in New Orleans, Mr. Hall was responsible for all bank smith, Wichman and Case in Honolulu, Hawaii. card activity and small business loans. Mr. Hall is a His term runs through December 1986. former member of the Louisiana Bankers Associa- The twelve new members, named for three- tion's Consumer Credit Committee. year terms beginning January 1, 1986, are the following: Steven W. Hamm, Columbia, South Carolina, is the Administrator for the South Carolina Department of Consumer Affairs and is also the Consumer Advocate Edwin B. Brooks, Richmond, Virginia, has been for the state. He is responsible for enforcing state President of Security Federal Savings and Loan Asso- consumer credit laws, assisting consumers with comciation since it was founded in 1954. He is a former plaints, and representing the public before regulatory Chairman of the United States League of Savings agencies. Mr. Hamm is a member of numerous profes- Institutions and is presently Chairman of the Legisla- sional associations including the American Conference tive Committee. Mr. Brooks has been a member of of Uniform Consumer Credit Code States and serves numerous federal advisory councils including the as Vice President of the National Association of Board's Truth in Lending Advisory Committee and Consumer Agency Administrators. He holds a B.A. Thrift Institutions Advisory Council. He holds a B.A. from the University of California and a law degree and an M.S. from the University of Richmond. from the University of South Carolina. Michael S. Cassidy, New York, New York, has Robert J. Hobbs, Boston, Massachusetts, has been been with Chase Manhattan Bank for 20 years. As with the National Consumer Law Center for 13 years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin • March 1986 He serves as a consulting attorney for legal services munities. She has been active in providing technical and private attorneys, representing low-income con- assistance to community-based organizations, has sumers nationwide. He has also taught continuing helped to form community development credit unions legal education courses. Mr. Hobbs was formerly with as substitutes for banks in low- and moderate-income the New Orleans Legal Assistance Corporation. He neighborhoods, and has assisted in the development of holds a law degree from Vanderbilt University. partnership activities among banks, credit unions, and communities. Ms. Shull holds a number of community service positions. Robert W. Johnson, West Lafayette, Indiana, has been the Director of the Credit Research Center at Purdue University for 11 years. He also is Professor of Edward J. Williams, Chicago, Illinois, has been with Management at the university. Formerly an economist Harris Trust and Savings Bank for 22 years, 5 years in with the Federal Reserve Board, he has served in a his current capacity as Senior Vice President. Mr. variety of consulting positions, including work for the Williams serves on several committees at the city Board and the Federal Trade Commission. He was a government and neighborhood level. His community Presidential appointee to the National Commission on involvement includes serving as Vice Chairman of the Consumer Finance. Dr. Johnson has a Ph.D. in Eco- Board of the Provident Medical Center. He is also a nomics from Northwestern University and an M.B.A. visiting professor for the National Urban League's from Harvard. He is the author of numerous economic Black Executive Exchange Program, and Treasurer of publications. the Association for Shared Electronic Funds Transfer. Mr. Williams is a former member of the Board of Directors of the Neighborhood Housing Services, John M. Kolesar, Cleveland, Ohio, is President of Inc., in Chicago. Ameritrust Development Bank, which specializes in financial services for nonprofit organizations and in developmental finance for communities. Mr. Kolesar is a former social services administrator. Since 1982, INTERPRETATION OF MARGIN he has served as a Vice President at Ameritrust REQUIREMENTS Company. In this position, he was responsible for bank relations and for planning, marketing, and under- The Federal Reserve Board adopted on January writing credit facilities for economic and community development. He is Chairman of the Consumer Bank- 10, 1986, an interpretation applying margin reers Association's Basic Banking Services Task Force. quirements to a narrow class of debt securities Mr. Kolesar has an M.B.A. from Harvard University. that are sometimes issued to obtain credit for the purchase of margin stock in corporate takeovers. Alan B. Lerner, Dallas, Texas, is Senior Executive The interpretation deals only with certain situ- Vice President for Associates Corporation of North ations involving a shell corporation used to fi- America and has been associated with the consumer nance the acquisition of margin stock of a target finance industry for 25 years. He currently serves as a company. Such a shell has the following characmember of the Texas Finance Commission. In the late 1960s, Mr. Lerner was a drafting participant on the teristics: virtually no business operations, no Uniform Consumer Credit Code, and in the early significant business function other than to ac- 1970s served as a consultant to the Federal Reserve quire and hold the shares of the target company, Board on matters relating to bank holding company and substantially no assets or cash flow to supsupervision and regulation. Mr. Lerner holds a law port the credit other than the margin stock it has degree from Yale University. acquired or intends to acquire. The interpretation clarifies that debt securities Sandra R. Parker, Richmond, Virginia, is a commuissued by such a shell are presumed to be indinity organizer and the Principal of the John F. Kennedy Building of Armstrong-Kennedy High School in rectly secured by the stock to be acquired and Richmond. Mrs. Parker is the former Chair of Rich- are thus subject to provisions of Regulation G mond United Neighborhoods (RUN) and is currently (Securities Credit by Persons Other than Banks, Chair of its banking committee. RUN has been active Brokers, or Dealers). in bringing community reinvestment concerns to the The presumption in the interpretation that debt attention of local banks. securities are indirectly secured by margin stock would not apply if there were specific evidence Jane Shull, Philadelphia, Pennsylvania, is the Directhat lenders could in good faith rely on assets tor of the Institute for the Study of Civic Values, a nonprofit educational organization with a special inter- other than the margin stock as collateral, such as est in the development of strong neighborhood com- a guaranty by the parent of the shell corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 193 The interpretation also would not apply to Bank surplus were $155 million; and payments to other general types of transactions involving the Treasury amounted to $17,798 billion. operating companies with substantial assets or Under the policy established by the Board of cash flow, or when there is an agreed-upon Governors at the end of 1964, all net income after merger or statutory "short-form" merger. the statutory dividend to member banks and the The Board wrote clarifying language into the amount necessary to equate surplus to paid-in final version of the interpretation to narrow its capital is transferred to the U.S. Treasury as scope further and to make clear that the term interest on Federal Reserve notes. "indirectly secured" will continue to apply as it has in the past. REVISED LIST OF OTC MARGIN STOCKS At present, the Board has a margin requirement of 50 percent on margin stock and convert- The Federal Reserve Board has published a ible bonds. This requirement means that a lender revised list of over-the-counter (OTC) stocks may extend credit for half the value of the stock that are subject to its margin regulations, effecsecuring the credit. tive February 11, 1986. The interpretation does not apply to written The list includes all over-the-counter securities contracts to extend credit entered into before the designated by the Board pursuant to its estabeffective date of the interpretation, January 10, lished criteria as well as all securities qualified 1986. for trading in the national market system (NMS). This list included all securities qualified for trad- INCOME AND EXPENSES OF ing in tier 1 of the NMS through February 11 and THE FEDERAL RESERVE BANKS those in tier 2 through January 21, 1986. Additional OTC securities may be designated as NMS Preliminary figures released on January 10, 1986, securities in the interim between the Board's indicate that gross income of the Federal Re- quarterly publications and will be immediately serve Banks amounted to $18,132 billion during marginable. The next publication of the Board's 1985. More than $17 billion was paid to the U.S. list is scheduled for May 1986. Treasury. This List of Marginable OTC Stocks super- Income of the Federal Reserve System is sedes the revised list that was effective on Noderived primarily from interest accrued on U.S. vember 12, 1985. Changes that have been made government securities that the Federal Reserve in the list, which now includes 2,595 OTC stocks, has acquired through open market operations. are as follows: 149 stocks have been included for Income from the provision of financial services the first time, 110 under NMS designation; 31 amounted to $614 million. stocks previously on the list have been removed Operating expenses of the 12 Reserve Banks for substantially failing to meet the requirements and their branches totaled $1,127 billion includ- for continued listing; 44 stocks have been reing $102 million for earnings credits granted to moved for reasons such as listing on a national depository institutions. Assessments by the securities exchange or involvement in an acquisi- Board of Governors for Board expenditures to- tion. taled $77 million, and the cost of currency In addition to NMS-designated securities, the amounted to $174 million. Net additions to cur- Board will continue to monitor the market activirent net income amounted to $1.3 billion. This ty of other OTC stocks to determine which income resulted primarily from a $1.2 billion stocks meet the requirements for inclusion and increase in the value of assets denominated in continued inclusion on the list. foreign currencies related to revaluation of these assets at market exchange rates and a gain of $99 PROPOSED ACTIONS million on sales of U.S. government obligations. Net income before dividends, additions to The Federal Reserve Board has proposed for surplus, and payments to the Treasury totaled comment revisions to Regulation Q (Interest on $18,056 billion. Statutory dividends to member Deposits) that would update and simplify the banks were $103 million; additions to Reserve requirements for advertising of interest on de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletiii • March 1986 I posits by member banks. Comment is requested Policy. Mr. Ryback has a B.S. from Seton Hall by March 6, 1986. University. The Federal Reserve Board has also an- Mr. Martinson came to the Board in 1971 in nounced extension until February 3, 1986, of the the Division of Banking Supervision and Regulaperiod for comment on proposals published in tion where he became Project Manager for Inter- November concerning Federal Reserve float. national Activities in 1982. Mr. Martinson has a The Federal Reserve Board also issued for B.A. from Grinnell College and an M.I.A. from public comment a proposal intended to bring its Columbia University. policies on bank capital into better alignment with the risk profile of the banking industry. The overall objective of this Supplemental Adjusted SYSTEM MEMBERSHIP: Capital Measure is to enhance the strength and ADMISSION OF STATE BANKS promote the safety and soundness of the banking system. Comment is requested by April 25, 1986. The following banks were admitted to membership in the Federal Reserve System during the period January 1 through January 31, 1986: CHANGES IN BOARD STAFF Indiana The Board of Governors has announced the Hartford City Pacesetter Bank of following appointments to the official staff in the Hartford City Division of Banking Supervision and Regulation: Montana William A. Ryback as Deputy Associate Direc- Billings First Trust Company of Montna tor, with responsibility for international supervi- New York sory policy and activities; and Michael G. Mar- New York City Dominican Bank tinson as Assistant Director, with responsibility Texas for oversight of the International Applications Lorena Lorena State Bank and International Supervision Sections. Utah Mr. Ryback had been on the staff of the Office Salt Lake City Lockhart Company of the Comptroller of the Currency, and in 1983, Virginia became Director of Regional and Multinational Portsmouth Community Trust Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

195 Legal Developments AMENDMENT TO REGULATION G proval of either the shareholders or directors of the target company. The interpretation also provides that The Board of Governors is amending its Regulation G, the Board does not presume debt securities, issued by Securities Credit by Persons Other Than Banks, Bro- an operating company with substantial assets or cash kers, or Dealers, by issuing a final interpretative rule flow to finance the acquisition of margin stock of a concerning the applicability of the margin require- target company, are indirectly secured by margin ments to debt securities issued to finance the acquisi- stock and thus subject to the restrictions on margin tion of the margin stock of a target company in a lending in Regulation G. corporate takeover attempt. The Board is interpreting Effective January 10, 1986, the Board amends the term "indirectly secured" in the margin rules to 12 C.F.R. Part 207 as follows: apply to a limited class of transactions used to finance corporate takeovers. Because the debt securities at issue clearly involve "purpose credit" and are pur- Part 207—Securities Credit by Persons Other chased by persons who may become "lenders" as Than Banks, Brokers, or Dealers defined in Regulation G and typically are not directly secured by margin stock, the margin requirements 1. The authority citation for 12 C.F.R. Part 207 continapply if the debt securities are "indirectly secured" by ues to read as follows: margin stock. The interpretation provides that the Board is of the Authority: 15 U.S.C. 78c, 78g, 78h, 78q and 78w. view that debt securities issued by a shell corporation to finance the acquisition of the margin stock of a 2. Part 204 is amended by adding a new section 207.112 target company are indirectly secured by the margin to read as follows: stock for purposes of the restrictions on lending in the margin regulations. Such a shell has virtually no business operations, no significant business function Section 207.112—Purchase of Debt Securities other than to acquire and hold the shares of the target to Finance Corporate Takeovers company, and substantially no assets or cash flow to support the credit other than the margin stock that it (a) Petitions have been filed with the Board raising has acquired or intends to acquire. questions as to whether the margin requirements in The presumption that the debt securities are indi- Regulation G apply to two types of corporate acquisirectly secured by margin stock would not apply if tions in which debt securities are issued to finance the there is specific evidence that lenders could in good acquisition of margin stock of a target company. faith rely on assets other than margin stock as collater- (b) In the first situation, the acquiring company, al, such as a guaranty of the debt securities by the shell Company A, controls a shell corporation that would corporation's parent company or another company make a tender offer for the stock of Company B, which that has substantial non-margin stock assets or cash is margin stock (as defined in section 207.2(i)). The flow. This presumption would also not apply if there is shell corporation has virtually no operations, has no a merger agreement between the acquiring and target significant business function other than to acquire and companies entered into at the time the commitment is hold the stock of Company B, and has substantially no made to purchase the debt securities or in any event assets other than the margin stock to be acquired. To before the loan funds are advanced. In addition, the finance the tender offer, the shell corporation would presumption would not apply if the obligation of the issue debt securities which, by their terms, would be purchasers of the debt securities to advance funds to unsecured. If the tender offer is successful, the shell the shell corporation is contingent on the shell's acqui- corporation would seek to merge with Company B. sition of the minimum number of shares necessary However, the tender offer seeks to acquire fewer under applicable state law to effect a merger between shares of Company B than is necessary under state law the acquiring and target companies without the ap- to effect a "short form" merger with Company B, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin • March 1986 which could be consummated without the approval of ers of the debt securities could not, in good faith, lend shareholders or the board of directors of Company B. without reliance on the margin stock as collateral. The (c) The purchase of the debt securities issued by the presumption that the debt securities are indirectly shell corporation to finance the acquisition clearly secured by margin stock would not apply if there is involves "purpose credit" (as defined in section specific evidence that lenders could in good faith rely 207.2(1)). In addition, such debt securities would be on assets other than margin stock as collateral, such as purchased only by sophisticated investors in very a guaranty of the debt securities by the shell corporalarge minimum denominations, so that the purchasers tion's parent company or another company that has may be "lenders" for purposes of Regulation G. See substantial non-margin stock assets or cash flow. This 12 C.F.R. § 207.2(h). Since the debt securities con- presumption would also not apply if there is a merger tain no direct security agreement involving the margin agreement between the acquiring and target compastock, applicability of the lending restrictions of the nies entered into at the time the commitment is made Regulation turns on whether the arrangement consti- to purchase the debt securities or in any event before tutes an extension of credit that is secured indirectly loan funds are advanced. In addition, the presumption by margin stock. would not apply if the obligation of the purchasers of (d) As the Board has recognized, "indirect security" the debt securities to advance funds to the shell can encompass a wide variety of arrangements be- corporation is contingent on the shell's acquisition of tween lenders and borrowers with respect to margin the minimum number of shares necessary under applistock collateral that serve to protect the lenders' cable state law to effect a merger between the acquirinterest in assuring that a credit is repaid where the ing and target companies without the approval of lenders do not have a conventional direct security either the shareholders or directors of the target cominterest in the collateral. See 12 C.F.R. §221.113. pany. In these two situations where the merger will However, credit is not indirectly secured by margin take place promptly, the Board believes the lenders stock if the lender in good faith has not relied on the could reasonably be presumed to be relying on the margin stock as collateral in extending or maintaining assets of the target for repayment. credit. See 12 C.F.R. § 207.2(f)(2)(iv). (g) In addition, the Board is of the view that the debt (e) The Board is of the view that, in the situation securities described in paragraph (b) above are indidescribed in paragraph (b) above, the debt securities rectly secured by margin stock because there is a would be presumed to be indirectly secured by the practical restriction on the ability of the shell corporamargin stock to be acquired by the shell acquisition tion to dispose of the margin stock of the target vehicle. The staff has previously expressed the view company. "Indirectly secured" is defined in section that nominally unsecured credit extended to an invest- 207.2(f) of the regulation to include any arrangement ment company, a substantial portion of whose assets under which the customer's right or ability to sell, consist of margin stock, is indirectly secured by the pledge, or otherwise dispose of margin stock owned by margin stock. See Federal Reserve Regulatory Service the customer is in any way restricted while the credit 11 5-917.12. This opinion notes that the investment remains outstanding. The purchasers of the debt secucompany has substantially no assets other than margin rities issued by a shell corporation to finance a takestock to support indebtedness and thus credit could over attempt clearly understand that the shell corporanot be extended to such a company in good faith tion intends to acquire the margin stock of the target without reliance on the margin stock as collateral. company in order to effect the acquisition of that (f) The Board believes that this rationale applies to the company. This understanding represents a practical debt securities issued by the shell corporation de- restriction on the ability of the shell corporation to scribed above. At the time the debt securities are dispose of the target's margin stock and to acquire issued, the shell corporation has substantially no as- other assets with the proceeds of the credit. sets to support the credit other than the margin stock (h) In the second situation, Company C, an operating that it has acquired or intends to acquire and has no company with substantial assets or cash flow, seeks to significant business function other than to hold the acquire Company D, which is significantly larger than stock of the target company in order to facilitate the Company C. Company C establishes a shell corporaacquisition. Moreover, it is possible that the shell may tion that together with Company C makes a tender hold the margin stock for a significant and indefinite offer for the shares of Company D, which is margin period of time, if defensive measures by the target stock. To finance the tender offer, the shell corporaprevent consummation of the acquisition. Because of tion would obtain a bank loan that complies with the the difficulty in predicting the outcome of a contested margin lending restrictions of Regulation U and Comtakeover at the time that credit is committed to the pany C would issue debt securities that would not be shell corporation, the Board believes that the purchas- directly secured by any margin stock. The Board is of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 197 the opinion that these debt securities should not be organizations in the state. The Board has considered presumed to be indirectly secured by the margin stock the effects of the proposal on the structure of banking of Company D, since, as an operating business, Com- in Montana and has concluded that consummation of pany C has substantial assets or cash flow without this transaction would not have a significant adverse regard to the margin stock of Company D. Any effect on the concentration of banking resources in the presumption would not be appropriate because the state. purchasers of the debt securities may be relying on Applicant and Bank do not compete in the same assets other than margin stock of Company D for banking markets. Therefore, consummation of this repayment of the credit. proposal would not eliminate existing competition in any geographic market. The financial and managerial resources of Applicant and Bank are regarded as ORDERS ISSUED UNDER BANK HOLDING satisfactory and consistent with approval of the pro- COMPANY ACT, BANK MERGER ACT, BANK posal. Considerations relating to the convenience and SERVICE CORPORATION ACT, AND FEDERAL needs of the communities to be served are also consis- RESERVE ACT tent with approval of the proposal. Based on the foregoing and other facts of record, the Orders Issued Under Section 3 of the Bank Board has determined that the application should be, Holding Company Act and hereby is, approved for the reasons set forth above. The transaction shall not be consummated First Interstate BancSystem of Montana, Inc. before the thirtieth calendar day following the effective Billings, Montana date of this Order, or later than three months after the effective date of this Order, unless such period is Order Approving Acquisition of a Bank extended for good cause by the Board or the Federal Reserve Bank of Minneapolis, acting pursuant to First Interstate BancSystem of Montana, Inc., Bill- delegated authority. ings, Montana, a bank holding company within the By order of the Board of Governors, effective meaning of the Bank Holding Company Act of 1956, as January 27, 1986. amended (12 U.S.C. § 1841 et seq.) ("Act"), has applied for the Board's approval pursuant to section Voting for this action: Chairman Volcker and Governors 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire Martin, Wallich, Rice, and Seger. Absent and not voting: Governor Partee. First National Montana Bank of Missoula, Missoula, Montana ("Bank"). Notice of the application, affording interested per- JAMES MCAFEE sons an opportunity to submit comments, has been [SEAL] Associate Secretary of the Board given in accordance with section 3(b) of the Act (12 U.S.C. § 1842(b)). The time for filing comments has expired, and the Board has considered the appli- Landmark Bancshares Corporation cation and all comments received in light of the Clayton, Missouri factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). Order Approving Acquisition of Bank Holding Applicant is the third largest commercial banking Company and Bank organization in Montana, controlling deposits of $379.3 million, representing 6.4 percent of the total Landmark Bancshares Corporation, Clayton, Missoudeposits in commercial banking organizations in the ri, a bank holding company within the meaning of the state.1 Bank is the ninth largest commercial banking Bank Holding Company Act (12 U.S.C. § 1841 et organization in the state, controlling deposits of $101.6 seq.) ("Act"), has applied for the Board's approval million, representing 1.7 percent of the total deposits under section 3(a)(5) of the Act (12 U.S.C. in commercial banking organizations in the state. § 1842(a)(5)) to acquire Brentwood Bancshares Corpo- Upon consummation of the proposed acquisition, Ap- ration, Brentwood, Missouri ("BBC"), and thereby plicant would remain the third largest commercial indirectly to acquire Brentwood Bank, Brentwood, banking organization and would control approximately Missouri ("Bank"). 8.1 percent of the total deposits in commercial banking 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 banking data are as of June 30, 1985. time for filing comments has expired, and the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin • March 1986 has considered the application and all comments re- The Board has stated and continues to believe that ceived in light of the factors set forth in section 3(c) of capital adequacy is an especially important factor in the Act. the analysis of bank holding company proposals, and Applicant controls six commercial banking organi- that it will consider the implications of a significant zations with total deposits of $747.3 million.1 Appli- level of intangible assets in evaluating an application. cant is the ninth largest commercial banking organiza- In the Board's Capital Adequacy Guidelines,4 the tion in Missouri, controlling approximately 2.0 percent Board has stated that, in reviewing acquisition proposof the total deposits in commercial banking organiza- als, it will take into consideration both the stated tions in the state. Applicant seeks to acquire BBC, and primary capital ratio and the primary capital ratio after thereby control Bank, which holds deposits of $66.2 deducting intangibles. In acting on applications under million and is the 115th largest commercial banking the Guidelines, the Board will also take into account organization in the state, controlling approximately 0.2 the nature and amount of intangible assets and, as percent of total deposits in commercial banking orga- appropriate, will adjust capital ratios to include intannizations in the state. Upon consummation of this gible assets on a case-by-case basis. proposal, Applicant would remain the ninth largest In its assessment of Applicant's capital adequacy, commercial banking organization in the state, control- the Board has considered the fact that at the time of ling deposits of $813.5 million, representing 2.18 per- consummation of this proposal, Applicant would meet cent of total deposits in commercial banking organiza- the minimum capital ratios required under the Board's tions in the state. Consummation of this transaction Guidelines without undue reliance on intangible assets would not have any significant adverse effects upon and with no reliance on goodwill. In addition, Applithe concentration of banking resources in the state. cant has submitted a capital plan by which it will Both Applicant and BBC operate subsidiary banks continue to improve its tangible primary capital ratio in the St. Louis banking market.2 Applicant is the and its total capital ratio. Based upon these facts, the seventh largest of 60 commercial banking organiza- Board concludes that the financial and managerial tions there controlling 4.2 percent of total deposits in resources and future prospects of Applicant, its subcommercial banks in the market. BBC is the 39th sidiary bank, BBC, and Bank are consistent with largest commercial banking organization controlling approval, particularly in light of commitments made 0.4 percent of total deposits in commercial banks in by Applicant in connection with this application. Conthe market. Upon consummation, Applicant would be siderations relating to the convenience and needs of the sixth largest commercial banking organization in the communities to be served also are consistent with the market, controlling 4.6 percent of the total deposits approval. in commercial banks there. Based on the foregoing and other facts of record, the The St. Louis banking market is unconcentrated, Board has determined that the application should be, with a four-firm concentration ratio of 55.1 percent and hereby is approved. The transaction shall not be and a Herfindahl-Hirschman Index ("HHI") of 879. consummated before the thirtieth calendar day follow- Upon consummation, the HHI would increase by only ing the effective date of this Order, or later than three three points to 882. Accordingly, the Board concludes months after the effective date of this Order, unless that the acquisition will have no significant adverse such period is extended for good cause by the Board or effect on existing competition.3 by the Federal Reserve Bank of St. Louis, pursuant to In evaluating this application, the Board has consid- delegated authority. ered the financial and managerial resources of Appli- By order of the Board of Governors, effective cant and the effect on these resources of this proposal. January 27, 1986. Voting for this action: Chairman Volcker and Governors Martin, Wallich, Rice, and Seger. Absent and not voting: Governor Partee. 1. Deposit data are as of December 31, 1984. JAMES MCAFEE 2. The St. Louis banking market is approximated by the St. Louis [SEAL] Associate Secretary of the Board Ranally Metro Area, adjusted to include all of St. Charles and Jefferson Counties, Missouri, and all of Lebanon and Mascoutah townships in St. Clair County, Illinois. 3. Under the Department of Justice's revised Merger Guidelines (49 Federal Register 26,823 (June 29, 1984)), a market with a postmerger HHI between 1000 and 1800 is considered moderately concentrated. This proposal will result in a post-merger HHI that falls below the moderately concentrated definition specified in the Guidelines and 4. Capital Adequacy Guidelines, 71 FEDERAL RESERVE BULLETIN thus is not subject to challenge under the Department's Guidelines. 445 (1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 199 St. James Bancorp, Inc. tors relating to competition under the Act are consis- St. James, Minnesota tent with approval of this proposal. The Board has previously stated that bank holding Order Denying Acquisition of Bank Holding companies are expected to serve as a source of mana- Company and Bank gerial and financial strength to their subsidiary banks.3 The Board closely examines the condition of each St. James Bancorp, Inc., St. James, Minnesota, a bank applicant with this consideration in mind. In this holding company within the meaning of the Bank regard, the Board has cautioned against the assump- Holding Company Act of 1956, as amended (the tion of substantial amounts of debt by a bank holding "Act") (12 U.S.C. § 1841 et seq.), has applied for the company because the Board was concerned that the Board's approval under section 3(a)(3) of the Act holding company would no longer have the financial (12 U.S.C. § 1842(a)(3)) to acquire all of the outstand- flexibility to meet unexpected problems of its subsiding voting shares of Roseville Bancorp, Inc., Minne- iary banks or would be forced to place substantial apolis, Minnesota ("Company"), and thereby to ac- demands on its subsidiary banks to meet its debt quire indirectly Mid America National Bank of servicing requirements. A high debt-to-equity ratio Roseville, Roseville, Minnesota ("Bank"). also may give rise to the risks associated with leverag- Notice of the application, affording an opportunity ing. Such risks include a significant reduction in the for interested persons to submit comments, has been parent company's ability to use the debt and capital given in accordance with section 3(b) of the Act. The markets to aid its subsidiary banks, should the need time for filing comments has expired, and the Board arise.4 has considered the application and all comments re- Applicant is currently highly leveraged and proceived in light of the factors set forth in section 3(c) of poses to assume more debt in connection with this the Act (12 U.S.C. § 1842(c)). acquisition. Applicant would be dependent on the Applicant's principals presently control Company earnings of its subsidiary banks and Bank to service and Bank. This proposal represents a reorganization of this debt. Applicant's subsidiary banks and Bank show ownership interests in Applicant, Company and Bank. combined negative earnings for 1985. Applicant's abil- Applicant is the 90th largest commercial banking orga- ity to service its proposed debt thus is questionable in nization in Minnesota, with two banks holding total light of the historical earnings and debt servicing deposits of $37.9 million, representing 0.1 percent of performance of Applicant and two of its affiliated total deposits in commercial banks in the state.1 Bank holding companies. Further, the Board notes that is the 226th largest commercial bank in Minnesota, Applicant's proposal is substantially similar to a stock holding total deposits of $21.6 million, representing redemption since the net result of Applicant's proposal less than 0.1 percent of total deposits in commercial is the buyout of one of Applicant's principals and the banks in the state. Upon consummation of this propos- replacement of equity with debt. In light of Applicant's al, Applicant would become the 40th largest commer- proposed high level of debt and questions concerning cial banking organization in Minnesota, holding total Applicant's ability to service that debt, the Board deposits of $59.5 million, representing 0.2 percent of concludes, based on these and other facts of record, total deposits in commercial banks in the state. that this proposal presents adverse factors bearing Bank operates in the Minneapolis-St. Paul banking upon the financial resources and future prospects of market,2 where it is the 84th largest of 124 commercial Applicant and Bank. banks, controlling 0.1 percent of total deposits in Applicant has proposed no new services for Bank commercial banks in the market. Applicant, its subsid- upon consummation of this proposal. Accordingly, iary banks, and its principals do not operate in the considerations relating to the convenience and needs Minneapolis-St. Paul banking market. Consummation of the community to be served are consistent with, but of this proposal would not result in any significant lend no weight toward, approval of the application. adverse effects on competition or increase in the On the basis of all of the facts of record of this concentration of banking resources in any relevant application, the Board concludes that the financial area. Accordingly, the Board concludes that the fac- considerations involved in this proposal are adverse 3. See Midwest Bancshares, Inc., 71 FEDERAL RESERVE BULLETIN 1. All banking data are as of March 31, 1985. 103 (1985); See also Singer & Associates, 70 FEDERAL RESERVE 2. The Minneapolis-St. Paul banking market is defined as the BULLETIN 883 (1984). Minneapolis-St. Paul Ranally Metro Area, adjusted to include all of 4. See Spur Bancshares Inc., 69 FEDERAL RESERVE BULLETIN 806 Carver and Scott Counties, and Lanesburgh Township in LeSueur (1983); Holcomb Bancshares, Inc., 69 FEDERAL RESERVE BULLETIN County, all in Minnesota. 804 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin • March 1986 and are not outweighed by any relevant competitive or ances incidental to, or arising out of, the exercise of its convenience and needs considerations. Accordingly, it lawful powers; buying and selling coin and bullion; is the Board's judgment that approval of this applica- purchasing, acquiring, investing in and holding stocks tion would not be in the public interest and that the of any corporation and selling and disposing of such application should be, and hereby is, denied for the stock, provided that (unless authorized by the Board) reasons summarized above. no such investment will exceed 5 percent of the voting By order of the Board of Governors, effective securities of any corporation; entering, directly or January 21, 1986. indirectly, into leasing transactions of a type permissible for bank holding company affiliates under section Voting for this action: Chairman Volcker and Governors 225.25(b)(5) of Regulation Y; operating a Cayman Martin, Wallich, Partee, Rice, and Seger. Islands branch and establishing, subject to Board approval under section 225.23(b)(1), other branches JAMES MCAFEE outside the United States and engaging at those offices [SEAL] Associate Secretary of the Board in transactions of the type that it can engage in at its home office; receiving time deposits at branches located outside the United States; and issuing guarantees of its customers' obligations at offices outside the United States if the guarantee or related agreement specifies a maximum monetary liability. Orders Issued Under Section 4 of the Bank Bergen Bank has also applied for Board approval to Holding Company Act acquire indirectly shares of Skandinaviska Enskilda Banken International Corporation, New York, New Bergen Bank A/S York, a corporation chartered pursuant to section Bergen, Norway 25(a) of the Federal Reserve Act (the "Edge Act") (12 U.S.C. § 611 et seq.) and owned by SEBC. Order Approving Acquisition of Shares of a Notice of the applications, affording interested per- Nonbanking Company sons an opportunity to submit comments, has been given in accordance with section 4 of the Act. The time Bergen Bank A/S, Bergen, Norway, a foreign bank for filing comments has expired, and the Board has that is subject to section 4(c)(8) of the Bank Holding considered the applications and all comments received Company Act ("Act") (12 U.S.C. § 1843(c)(8)) pursu- in light of the considerations specified in section ant to section 8(a) of the International Banking Act of 4(c)(8) of the Act and the purposes of the Edge Act. 1978 ("IBA") (12 U.S.C. § 3106(a)) by virtue of its Bergen Bank, with total assets of approximately indirect control of an agency in the United States, has $3.7 billion as of December 31, 1984, is the third applied for Board approval under section 4(c)(8) of largest bank in Norway, and operates 110 branch the Act and section 225.23(a)(3) of Regulation Y offices in Norway. In the United States, Bergen Bank (12 C.F.R. § 225.23(a)(3)) to acquire 20 percent of the maintains representative offices in Houston, Los Anvoting shares of Skandinaviska Enskilda Banken Cor- geles and New York City, and a subsidiary of Bergen poration, New York, New York ("SEBC"). SEBC is Bank, Skandinavian Bank Limited, London, England, an investment company organized under Article XII of maintains an agency in Los Angeles, California. the New York State Banking Law (a "New York SEBC is a New York Investment Company with Investment Company"), and engages in the following approximately $445.9 million in assets as of December activities: borrowing and lending money, with or with- 31,1984. All of the voting shares of SEBC are currentout real or personal security; as principal or agent, ly owned by Skandinaviska Enskilda Banken, Stockpurchasing, discounting, acquiring, investing in, sell- holm, Sweden, the second largest bank in Sweden, ing and disposing of bills of exchange, drafts, notes, which will retain 80 percent of the shares of SEBC acceptances and other obligations for the payment of upon consummation of the proposed transaction. money; as principal or agent, purchasing, acquiring, In acting on Bergen Bank's application to acquire investing in, servicing, selling and disposing of, and shares of SEBC, the Board must first determine that making loans upon the security of, bonds and mort- ownership of these shares and the activities conducted gages on real property; accepting bills of exchange or by SEBC are closely related to banking or managing or drafts drawn upon it; issuing letters of credit; buying controlling banks. The Board has previously deterand selling foreign exchange; receiving money for mined by order that ownership and operation of a New transmission and transmitting the same to and from the York Investment Company, and, in particular, owner- United States; receiving and maintaining credit bal- ship and operation of SEBC, is closely related to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 201 banking.1 In making that determination, the Board Order, unless such time is extended for good cause by considered the unique statutory powers of New York the Board or by the Federal Reserve Bank of New investment companies and the fact that the lending and York, pursuant to delegated authority. The Board's banking activities involved were generally offered by determination in this case is subject to all of the commercial banks. In this case, the activities proposed conditions set forth in Regulation Y, including sections by Applicant have been authorized by previous Board 225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) and order. In light of this and other facts of record, the 225.23(b)), and to the Board's authority to require Board believes that the proposed activities of SEBC such modifications or termination of activities of a are closely related to banking for purposes of section 4 bank holding company or any of its subsidiaries as the of the Act. Board finds necessary to assure compliance with, and In acting on applications under section 4 of the Act, prevent evasions of, the provisions and purposes of the Board is required to determine whether the per- the Act and the Board's regulations and orders issued formance of the proposed activities by an applicant thereunder. "can reasonably be expected to produce benefits to By order of the Board of Governors, effective the public, such as greater convenience, increased January 23, 1986. competition, or gains in efficiency that outweigh possible adverse effects, such as undue concentration of Voting for this action: Chairman Volcker and Governors resources, decreased or unfair competition, conflicts Martin, Partee, Rice, and Seger. Absent and not voting: of interests, or unsound banking practices." Governor Wallich. (12 U.S.C. § 1843(c)(8)). Applicant's proposed acquisition would maintain an JAMES MCAFEE existing source of banking services in New York and [SEAL] Associate Secretary of the Board add an additional source of strength to SEBC. There is no evidence in the record that indicates that Applicant's proposal would result in any undue concentra- The Chase Manhattan Corporation tion of resources, decreased or unfair competition, New York, New York conflicts of interest or unsound banking practices. Accordingly, the Board has determined that the Order Approving Acquisition of a Company Engaged benefits to the public, subject to the conditions de- in Leasing Activities scribed above and commitments made by Applicant, would outweigh any potentially adverse effects. The Chase Manhattan Corporation, New York, New The financial and managerial resources of Applicant York, a bank holding company within the meaning of are also consistent with its indirect acquisition of the Bank Holding Company Act, 12 U.S.C. § 1841 shares of Skandinaviska Enskilda Banken Internation- et seq. ("BHC Act"), has applied for the Board's al Corporation. This acquisition would result in the approval under section 4(c)(8) of the BHC Act and continuation of the international services currently section 225.23(a)(1) of the Board's Regulation Y provided, and is consistent with the purposes of the (12 C.F.R. § 225.23(a)(1)), to acquire Sturgeon Com- Edge Act. In this regard, the Board notes that SEBC's pany, Third Century, Inc., and Third Century, Ltd., Edge Act subsidiary may not fund SEBC through all of Moberly, Missouri (the "Leasing Group"); and transactions that would be inconsistent with the pur- to acquire a 75 percent interest in Third Century poses for which an Edge Corporation is established. Limited TCG ("Company"), Moberly, Missouri, a Accordingly, the Board finds that the indirect acquisi- de novo general partnership. The remaining 25 percent tion of shares of Skandinaviska Enskilda Banken interest in Company will be held by Genola II, Inc., a International Corporation by Bergen Bank would be in privately held corporation owned by the sellers of the the public interest. Leasing Group. Applicant proposes to engage through Based on all of the facts of record, the Board has the Leasing Group and Company in the activity of determined that the applications under section 4 of the leasing personal property, including acting as agent, Act and under the Edge Act should be, and hereby are, broker and advisor in leasing such property, and approved. The acquisition of shares shall be consum- through the Leasing Group directly or the Company mated no later than three months after the date of this indirectly in remarketing repossessed property. These activities have been determined by the Board to be closely related to banking and permissible for bank 1. Skandinaviska Enskilda Banken, 69 FEDERAL RESERVE BULLE- holding companies (12 C.F.R. § 225.25(b)(5)). TIN 42 (1983). See also The Industrial Bank of Japan, 72 FEDERAL Notice of the application, affording interested per- RESERVE BULLETIN 71 (1986); European American Bancorp, 63 FEDERAL RESERVE BULLETIN 595 (1977). sons an opportunity to submit comments, has been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Federal Reserve Bulletin • March 1986 duly published, 50 Federal Register 45,665 (1985). The Because this proposal involves the use of a joint time for filing comments has expired, and the Board venture between a bank holding company and a nonhas considered the application and all comments re- banking company, the Board has analyzed the effects ceived in light of the public interest factors set forth in of the proposal on existing and potential competition section 4(c)(8) of the BHC Act. between Applicant and its co-venturer in the nation- Applicant is the third largest banking organization in wide market for leasing personal property.2 Applicant, the United States, controlling consolidated assets of through offices of its nonbanking subsidiaries, and $87.8 billion as of September 30, 1985. Applicant has Leasing Group both engage in small-ticket equipment five bank subsidiaries. Applicant's primary bank sub- leasing throughout the United States. Other compasidiary, Chase Manhattan Bank N.A., New York, nies competing in the leasing business vary in size New York, is the second largest bank in the state of from very large national corporations to small, region- New York, with total domestic deposits of $23.5 al companies. The market for small-ticket equipment billion, representing 14.3 percent of the total deposits leasing is not concentrated. Applicant holds $331 in commercial banks in the state of New York.1 million in lease receivables, and the Leasing Group Applicant also is engaged through nonbank subsidiar- holds $36.6 million. Upon consummation of this proies in various nonbanking activities, including com- posal Applicant would control lease receivables of mercial financing, leasing, factoring and related servic- approximately 0.5 percent of the estimated $74.4 biling activities. lion worth of equipment that was leased in the United The Leasing Group currently engages in the leasing States in 1984.3 Accordingly, the Board concludes that consummation of this proposal would not have a and remarketing of "small-ticket" (less than $250,000 significant adverse effect on either existing or potential per item) personal property to non-municipal lessees. competition in any relevant market. These items include copying equipment, telephone systems, medical equipment, computers, and manu- Financial and managerial considerations are consisfacturing equipment. In conjunction with its leasing/ tent with approval of this proposal. Moreover, there is remarketing activities, the Leasing Group also cur- no evidence in the record that consummation of this rently offers to its customers direct repair and mainte- proposal would result in adverse effects, such as nance services for the leased property. The direct unsound banking practices, unfair competition, conrepair and maintenance services will not be offered by flicts of interests or an undue concentration of rethe Leasing Group or Company after consummation of sources. the proposed transaction. Based upon the foregoing and all the facts of record, The Leasing Group operates its leasing business the Board has determined that the balance of public from its office in Moberly, Missouri. Two offices in interest factors it is required to consider under section Moberly and Columbia, Missouri, conduct the Leasing 4(c)(8) is favorable. Accordingly, the application is Group's remarketing business. The Leasing Group hereby approved. This determination is subject to all had consolidated assets of $43.2 million as of of the conditions set forth in the Board's Regulation Y, August 31,1985, and competes in the market for small- including those in sections 225.4(d) and 225.23(b), and ticket leasehold equipment through an established to the Board's authority to require modification or nationwide network of more than 500 dealers who termination of the activities of the holding company or offer the Leasing Group's lease financing products. any of its subsidiaries as the Board finds necessary to This proposal has been structured as a joint venture assure compliance with the provisions and purposes of to take advantage of the complementary resources and the BHC Act and the Board's regulations and orders experience of Applicant and Leasing Group. While issued thereunder, or to prevent evasion thereof. Applicant engages in leasing small-ticket items, Appli- This transaction shall not be consummated later cant does not offer to a large extent the product line than three months after the effective date of this offered by the Leasing Group. In addition, the Leasing Order, unless such period is extended for good cause Group has developed specialized software for conducting the leasing business and engages in extensive telemarketing operations. Applicant's financial re- 2. The Board has previously indicated its concerns regarding the sources and capital-raising capabilities are expected to potential for undue concentration of resources that could result from help ensure that the Leasing Group will continue to the combination in a joint venture of banking and nonbanking instituoperate successfully. tions. The Board is also concerned that joint ventures not lead to a matrix of relationships that could undermine the legally-mandated separation of banking and commerce. See e.g., Amsterdam-Rotterdam Bank, N.V., 70 FEDERAL RESERVE BULLETIN 835 (1984); Deutsche Bank AG, 67 FEDERAL RESERVE BULLETIN 449 (1981). 1. All banking data are as of June 30, 1984, unless otherwise 3. American Association of Equipment Lessors, Annual Report 1 indicated. (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 203 by the Board, or by the Federal Reserve Bank of New sophisticated customers in the United States and York, pursuant to delegated authority. abroad. By order of the Board of Governors, effective Notice of the application, affording interested per- January 16, 1986. sons an opportunity to submit comments on the relation of the proposed activities to banking and on the Voting for this action: Chairman Volcker and Governors balance of public interest factors, has been duly pub- Martin, Wallich, Partee, Rice, and Seger. lished (50 Federal Register 50,959 (1985)). The time for filing comments has expired, and the Board has con- WILLIAM W. WILES sidered the application and all comments received in [SEAL] Secretary of the Board light of the public interest factors set forth in section 4(c)(8) of the BHC Act. Applicant, with consolidated assets of $87.8 billion,1 The Chase Manhattan Corporation is the third largest banking organization in the United New York, New York States. Applicant operates five subsidiary banks and also engages in various nonbanking activities through Order Approving Application to Execute and Clear a number of subsidiaries. CMFC is a Futures Commis- Futures Contracts on Stock Indexes sion Merchant ("FCM") registered with the Commodity Futures Trading Commission ("CFTC"), that en- The Chase Manhattan Corporation, New York, New gages in futures trading activities permissible for bank York, a bank holding company within the meaning of holding companies under section 225.25(b)(18) of the the Bank Holding Company Act, 12 U.S.C. § 1841 Board's Regulation Y, 12 C.F.R. § 225.25(b)(18). et seq. ("BHC Act"), has applied pursuant to section The Board has previously determined that the exe- 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and cution and clearance of futures contracts, and options section 225.23(a)(3) of the Board's Regulation Y on futures contracts, based on stock indexes is closely (12 C.F.R. § 225.23(a)(3)) to engage de novo through related to banking. J.P. Morgan & Co. Incorporated, its wholly owned subsidiary, Chase Manhattan Fu- 71 FEDERAL RESERVE BULLETIN 251 (1985). The protures Corporation ("CMFC"), in the execution and posed activities of CMFC are essentially identical to clearance, on major commodity exchanges, of futures those activities previously approved by the Board. contracts on stock indexes and options on such futures Thus, the Board concludes that Applicant's proposal contracts. to execute and clear futures contracts on stock indexes CMFC proposes to execute and clear: is closely related to banking. (1) the Standard and Poor's 100 Stock Price Index In order to approve this application, the Board is futures contract, the Standard & Poor's 500 Stock also required to determine that the performance of the Price Index futures contract ("S&P 500"), options proposed activities by Applicant "can reasonably be on the S&P 500, and the Standard & Poor's Over- expected to produce benefits to the public . . . that the-Counter 250 Stock Index futures contract, all of outweigh possible adverse effects, such as undue which are currently traded on the Index and Option concentration of resources, decreased or unfair com- Division of the Chicago Mercantile Exchange; petition, conflicts of interests, or unsound banking (2) the New York Stock Exchange ("NYSE") practices." (12 U.S.C. § 1843(c)(8)). Composite Index futures contract, and options on Consummation of Applicant's proposal would prothe NYSE Composite Index futures, both of which vide added convenience to those clients of Applicant are currently traded on the New York Futures and its subsidiaries that trade in the cash, forward and Exchange, a subsidiary of the New York Stock futures markets for these instruments. The Board Exchange; expects that the de novo entry of Applicant into the (3) the Major Market Index futures contract, and market for these services would increase the level of the NASD Financial Index Futures Contract, both competition among providers of these services. Acof which are currently traded on the Chicago Board cordingly, the Board concludes that the performance of Trade; of the proposed activities by Applicant can reasonably (4) the FT-SE 100 Equity Index futures contract, be expected to provide benefits to the public. currently traded on the London International Finan- The Board also has considered the potential for cial Futures Exchange; and adverse effects that may be associated with this pro- (5) the National Over-the-Counter Index, current- posal. There is no evidence in the record that consumly traded on the Philadelphia Board of Trade. Applicant proposes to offer these services to major corporations, other financial institutions, and other 1. As of September 30, 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 Federal Reserve Bulletin • March 1986 mation of the proposed FCM activities would result in 225.23(a)(1) of the Board's Regulation Y (12 C.F.R. any adverse effects, such as undue concentration of § 225.23(a)(1)), to establish a joint venture by the sale resources, decreased or unfair competition, conflicts of a one-third interest in Home Interstate's existing of interests, or unsound banking practices. In addition, subsidiary, Bancorp Capital Group, Inc. ("Compathe Board has taken into account and has relied on the ny"), to each of Cobanco and First Trust Bank, regulatory framework established pursuant to law by Ontario, California, a state-chartered nonmember the CFTC for the trading of futures, as well as the bank. By virtue of this sale, the joint venturers will conditions set forth in section 225.25(b)(18) of Regula- establish equity interests in Company that parallel tion Y with respect to executing and clearing futures their interests in Bancorp Venture Capital, Inc. contracts. ("BVC"), a small business investment corporation. Based upon a consideration of all the relevant facts, To date, Company's major activity has been to prothe Board concludes that the balance of the public vide permissible management and advisory services to interest factors that the Board is required to consider BVC.1 Company anticipates that it will offer investunder section 4(c)(8) is favorable. ment or financial advisory services to other small This determination is also subject to all of the business ventures in the future. conditions set forth in Regulation Y, including sections Notice of the applications, affording interested per- 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and sons an opportunity to submit comments, has been 225.23(b)(3)), and to the Board's authority to require duly published. 50 Federal Register 32,491 (1985). The such modification or termination of the activities of a time for filing comments has expired, and the Board bank holding company or any of its subsidiaries as the has considered the applications and all comments Board finds necessary to assure compliance with the received in light of the public interest factors set forth provisions and purposes of the BHC Act and the in section 4(c)(8) of the Act. Board's regulations and orders issued thereunder, or Applicant Home Interstate, controlling consolidated to prevent evasion thereof. assets of $244 million, is the 49th largest banking The transaction shall be made not later than three organization in California.2 Its sole bank subsidiary, months after the effective date of this Order, unless Home Bank, Signal Hill, California, holds deposits of such period is extended for good cause by the Board or $220 million, which represents .12 percent of the total by the Federal Reserve Bank of New York pursuant to deposits in commercial banks in California. As noted delegated authority. earlier, Applicant is engaged in various nonbanking By order of the Board of Governors, effective activities through its ownership of Company and a January 21, 1986. one-third interest in a small business investment corporation. Voting for this action: Chairman Volcker and Governors Applicant Cobanco, with total consolidated assets Martin, Wallich, Partee, Rice, and Seger. of $469 million, is the 25th largest banking organization in California. Its sole bank subsidiary, County Bank JAMES MCAFEE and Trust, Santa Cruz, California, controls total de- [SEAL] Associate Secretary of the Board posits of $431.5 million, representing .23 percent of the deposits in commercial banks in California. Cobanco's nonbanking activities consist of a data processing Home Interstate Bancorp, Inc. subsidiary and its one-third interest in BVC. Signal Hill, California Since this proposal involves the use of a joint venture to engage in the relevant activities, the Board Cobanco, Inc. has analyzed the effects of the proposal on existing and Santa Cruz, California potential competition among Applicants and their coventurer in the nationwide market for the offering of Order Approving Joint Venture to Engage in investment and financial advice to businesses. In this Investment and Financial Advisory Services regard, the Board notes that this proposal represents a reorganization of Company to reflect the same owner- Home Interstate Bancorp, Inc. ("Home Interstate"), ship interests in Company that already exist in Appli- Signal Hill, California, and Cobanco, Inc. ("Cobanco"), Santa Cruz, California (collectively, "Appli- 1. The Federal Reserve Bank of San Francisco, acting under cants"), bank holding companies within the meaning delegated authority, approved a prior application by Home Interstate of the Bank Holding Company Act ("Act") to allow Company to engage in lending, leasing, and investment or financial advisory services under sections 225.25(b)(1), ,25(b)(4)(iii), (12 U.S.C. § 1841 et seq.), have applied for the .25(b)(4)(iv), and .25(b)(5), respectively, of Regulation Y. Board's approval under the Act and section 2. Banking data are as of June 30, 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 205 cants' (and First Trust Bank's) current joint venture in Based upon the foregoing and all the facts of record, BVC, itself a small business investment corporation the Board has determined that the balance of public and currently Company's sole customer for advisory interest factors it is required to consider under section activities. The purpose of the reorganization is merely 4(c)(8) is favorable. Accordingly, the applications are to preclude any potential inequity in the sharing of hereby approved. This determination is subject to all revenues and losses that could occur as Company of the conditions set forth in the Board's Regulation Y, expands its activities while remaining wholly owned including those in sections 225.4(d) and 225.23(b), and by Applicant Home Interstate. Moreover, numerous to the Board's authority to require modification or existing and potential competitors in the nationwide termination of the activities of the holding company or market for such advisory services would remain after any of its subsidiaries as the Board finds necessary to consummation of the proposal. Accordingly, the assure compliance with the provisions and purposes of Board concludes that consummation of this proposal the Act and the Board's regulations and orders issued would not have a significant adverse effect on either thereunder, or to prevent evasion thereof. existing or potential competition in any relevant mar- This transaction shall not be consummated later ket. than three months after the effective date of this Financial and managerial considerations are consis- Order, unless such period is extended for good cause tent with approval of this proposal. Applicants' invest- by the Board, or by the Federal Reserve Bank of San ments in Company are not significant in relation to Francisco, pursuant to delegated authority. their assets. Furthermore, the pooling of resources by By order of the Board of Governors, effective the three banking organizations would reduce the January 28, 1986. business risk that would have to be borne by any one organization engaging in these activities alone. In Voting for this action: Chairman Volcker and Governors addition, there is no evidence in the record that Martin, Wallich, Rice, and Seger. Absent and not voting: Governor Partee. consummation of this proposal would result in adverse effects such as unsound banking practices, unfair competition, conflicts of interests or undue concentra- JAMES MCAFEE tion of resources. [SEAL] Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT 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 American Bancorporation, Inc., Beggs Bancshares, Inc., Kansas City January 3, 1986 Sapulpa, Oklahoma Beggs, Oklahoma Acadiana Financial Services, Acadiana National Bank, Atlanta December 30, 1985 Inc., Lafayette, Louisiana Lafayette, Louisiana ADBANC, Inc., ADCO Company, Kansas City December 20, 1985 Ogallala, Nebraska Ogallala, Nebraska Chase County Corporation, Ogallala, Nebraska Adams Bank and Trust, Ogallala, Nebraska Alice Financial Corporation, First National Bank, Dallas December 30, 1985 Alice, Texas Alice, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Federal Reserve Bulletin • March 1986 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date American Fletcher Corporation, First American National Bancorp, Chicago December 31, 1985 Indianapolis, Indiana Plainfield, Indiana AmeriTrust Corporation, AmeriTrust Development Bank, Cleveland December 24, 1985 Cleveland, Ohio Cleveland, Ohio Bancshares of Ysleta, Inc., Ysleta Bancshares, Inc., Dallas December 20, 1985 El Paso, Texas El Paso, Texas Bank of Ysleta, El Paso, Texas Bankers Bancorp of Oklahoma, The Bankers Bank, Kansas City January 13, 1986 Inc., Oklahoma City, Oklahoma Oklahoma City, Oklahoma Carlton County Bancorporation, City National Bank of Cloquet, Minneapolis December 19, 1985 Inc., Cloquet, Minnesota Cloquet, Minnesota CB Financial Corp., Citizens Bank, Atlanta January 6, 1986 Warrenton, Georgia Warrenton, Georgia Central Texas Bancshares, Inc., Guaranty National Bank, Dallas January 8, 1986 Austin, Texas Austin, Texas Citizens Dimension Bancorp, Charter Bancshares, Inc., Kansas City January 15, 1986 Inc., Oklahoma City, Oklahoma Muskogee, Oklahoma Citizens Financial Corporation, First National Bank of Skokie, Chicago December 24, 1985 Highland Park, Illinois Skokie, Illinois Commerce Exchange Commerce Exchange Bank, Cleveland January 14, 1986 Corporation, Beachwood, Ohio Beachwood, Ohio Commercial Bancshares, Inc., First National Bank of Abbeville, Atlanta December 20, 1985 Franklin, Louisiana Abbeville, Louisiana Commonwealth Bancshares The Turbotville National Bank, Philadelphia December 18, 1985 Corporation, Turbotville, Pennsylvania Williamsport, Pennsylvania CommuniCorp, Inc., Community National Bank, New York January 8, 1986 Addison, New York Addison, New York Community Financial Services, Georgia Bankers Bank, Atlanta January 3, 1986 Inc., Atlanta, Georgia Atlanta, Georgia Darman Financial of Minnesota, Harmony State Bank, Minneapolis December 27, 1985 Inc., Harmony, Minnesota Harmony, Minnesota F & M Financial Corp., Farmers & Merchants Bank, Atlanta January 6, 1986 Piedmont, Alabama Piedmont, Alabama F & M Financial Services The Farmers State Bank, Chicago December 23, 1985 Corporation, Sullivan, Wisconsin Menomonee Falls, Wisconsin Fairlawn Plaza Investments, Fairlawn Plaza State Bank, Kansas City December 30, 1985 Inc., Topeka, Kansas Topeka, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 207 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date First Breckinridge Banc shares, The West Point Bank, St. Louis December 17, 1985 Inc., West Point, Kentucky Irvington, Kentucky First Colonial Bankshares Community Bank & Trust Chicago December 27, 1985 Corporation, Company of Edgewater, Chicago, Illinois Chicago, Illinois First Community Bancshares, Bank of Middleton, St. Louis December 19, 1985 Inc., Middleton, Tennessee Middleton, Tennessee First Illini Bancorp, Inc., Madison Park Bank, Chicago December 24, 1985 Galesburg, Illinois Peoria, Illinois First National Bancorp, First Jackson Bancorp, Atlanta December 23, 1985 Gainesville, Georgia Jefferson, Georgia First North Louisiana First National Bank in Arcadia, Dallas January 10, 1986 Bancshares, Inc., Arcadia, Louisiana Arcadia, Louisiana First Peoria Corp., Peoples State Bank of Roanoke, Chicago January 7, 1986 Peoria, Illinois Roanoke, Illinois First Perry Independent First National Bank of Loysville, Philadelphia December 18, 1985 Bancorp, Inc., Loysville, Pennsylvania Loysville, Pennsylvania First Regional Bancorp, Inc., First National Bank-CT, Boston December 24, 1985 Hartford, Connecticut Hartford, Connecticut FNB Shares, Inc., The First National Bank of Cleveland December 27, 1985 McConnelsville, Ohio McConnelsville, McConnelsville, Ohio FNS Bancshares, Inc., The First National Bank/North- Atlanta December 24, 1985 Scottsboro, Alabama east State Bank of Alabama, Scottsboro, Alabama Forbes First Financial Eagle Bancshares Corporation, St. Louis December 18, 1985 Corporation, Hillsboro, Missouri St. Louis, Missouri EBM, Inc., St. Louis, Missouri Century Bancshares Corporation, St. Louis, Missouri Fulton Financial Corporation, Swineford National Bank, Philadelphia December 20, 1985 Lancaster, Pennsylvania Middleburg, Pennsylvania FWNB Bancshares, Inc., First Western National Bank of Dallas December 24, 1985 Carrollton, Texas Piano, Piano, Texas First Western National Bank of Mesquite, Mesquite, Texas Green Mountain Financial The Green Mountain Bank, Boston December 31, 1985 Services Corporation, Winhall Township, Vermont Wilmington, Delaware Guaranty Bancshares Community National Bank, Philadelphia December 31, 1985 Corporation, Shamokin, Pennsylvania Shamokin, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Federal Reserve Bulletin • March 1986 Section 3—Continued B ank( s)/Nonbanking Reserve Effective Applicant Company Bank date HPK Financial Corporation, Hyde Park Bank and Trust Chicago January 13, 1986 Chicago, Illinois Company, Chicago, Illinois International Bancshares Intercontinental National Bank- Dallas December 26, 1985 Corporation, Starcrest, Laredo, Texas San Antonio, Texas Kootenai Bancorp, Inc., First National Bank in Libby, Minneapolis January 10, 1986 Libby, Montana Libby, Montana Lamar Bancorporation, Inc., Lamar National Bank, Dallas December 30, 1985 Paris, Texas Paris, Texas LEIGHTON INVESTMENT Farmers Savings Bank, Chicago December 20, 1985 COMPANY, Leighton, Iowa Leighton, Iowa The Marine Corporation, The Commercial Banc-Corp, Chicago January 14, 1986 Milwaukee, Wisconsin Monroe, Wisconsin Marisub, Inc., Mequon State Bank, Milwaukee, Wisconsin Mequon, Wisconsin Mobile National Corporation, The Bank of Mobile, National Atlanta January 6, 1986 Mobile, Alabama Association, Mobile, Alabama Monticello Corporation, Bank of Monticello, Chicago December 31, 1985 Monticello, Wisconsin Monticello, Wisconsin National Bancshares First National Bank, Cleveland January 10, 1986 Corporation, Orrville, Ohio Orrville, Ohio National Bancshares City National Bank of Laredo, Dallas January 6, 1986 Corporation of Texas, Laredo, Texas San Antonio, Texas National Bancshares First Bancshares of Seguin, Dallas December 19, 1985 Corporation of Texas, Seguin, Texas San Antonio, Texas The First National Bank of Seguin, Seguin, Texas New Tripoli Bancorp, Inc., The New Tripoli National Bank, Philadelphia January 10, 1986 New Tripoli, Pennsylvania New Tripoli, Pennsylvania The North Salem State The North Salem State Bank, Chicago January 15, 1986 Bancorporation, North Salem, Indiana North Salem, Indiana North Vernon 1st Financial The First National Bank of North Chicago December 30, 1985 Corporation, Vernon, North Vernon, Indiana North Vernon, Indiana Pennsylvania National Financial Hamburg Savings and Trust Philadelphia January 10, 1986 Corporation, Company, Harrisburg, Pennsylvania Hamburg, Pennsylvania Rising Star Bancshares, Inc., First State Bank of Rising Star, Dallas December 24, 1985 Rising Star, Texas Rising Star, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 209 Section 3—Continued B ank( s)/Nonbanking Reserve Effective Applicant Company Bank date St. Paul Bancshares, Inc., Summit State Bank of Phalen Minneapolis December 26, 1985 St. Paul, Minnesota Park, St. Paul, Minnesota Sandhills Holding Company, Sandhills Bank, Richmond January 7, 1986 Inc., Bethune, South Carolina Bethune, South Carolina SOLON FINANCIAL, INC., Solon State Bank, Chicago January 7, 1986 Solon, Iowa Solon, Iowa Tampa State Bankshares, Inc., Chase County Bankshares, Inc., Kansas City January 7, 1986 Tampa, Kansas Strong City, Kansas Tattnall Bancshares, Inc., The Tattnall Bank, Atlanta January 16, 1986 Reidsville, Georgia Reidsville, Georgia Valley Holding Company, Valley National Bank of Aurora, Chicago December 30, 1985 Aurora, Illinois Aurora, Illinois Vernon Bancshares, Inc., The Vernon Bank, Atlanta January 10, 1986 Leesville, Louisiana Leesville, Louisiana Western Bancshares of Western Bank, Dallas December 23, 1985 Alamogordo, Inc., Alamogordo, New Mexico Alamogordo, New Mexico Wheatland Bankshares, Inc., The American Bank of Kansas City December 19, 1985 Wheatland, Wyoming Wheatland, Wheatland, Wyoming Section 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Dakota Bankshares, Inc., offering management consulting Minneapolis January 9, 1986 Fargo, North Dakota services to nonaffiliated banks Dakota Company, Inc., Big Stone Insurance Agency, Minneapolis January 8, 1986 Milbank, South Dakota Big Stone City, South Dakota First Bank System, Inc., W.W. Wallwork, Inc., Minneapolis December 30, 1985 Minneapolis, Minnesota Fargo, North Dakota Wallwork Lease and Rental Company, Inc., Fargo, North Dakota TEC Leasing, Inc., Casper, Wyoming Northwest Leasing Corporation, Fargo, North Dakota Manufacturers Hanover securities brokerage activities New York January 2, 1986 Corporation, New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin • March 1986 Section 4—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Marine Midland Banks, Inc., substantially all commercial New York December 31, 1985 Buffalo, New York finance receivables of The Hongkong and Shanghai Commercial Credit Business Banking Corporation, Loans, Inc., Hong Kong, B.C.C. Los Angeles, California Kellett, N.V., Commercial Credit Business Curacao, Netherlands Loans, Inc., Antilles Baltimore, Maryland HSBC Holdings B.V., Commercial Credit Business Amsterdam, The Services, Inc., Netherlands New York, New York Metro Bancorp, Incorporated, M. B. Mortgage Company, San Francisco December 23, 1985 Phoenix, Arizona Phoenix, Arizona Section 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Huntington Bancshares Commonwealth Trust Bancorp, Cleveland December 27, 1985 Kentucky, Inc., Inc., Columbus, Ohio Covington, Kentucky Huntington Bancshares Huntington Bancshares Cleveland December 27, 1985 Incorporated, Kentucky, Inc., Columbus, Ohio Columbus, Ohio ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date The Bank of New York, acquire certain assets New York December 31, 1985 New York, New York and assume certain liabilities of Fidata Trust Company New York, New York, New York Central Trust Company, acquire certain assets and New York December 31, 1985 Rochester, New York assume liability to pay certain deposits of a branch of Chemical Bank, New York, New York Colonial Bank, Luverne Bank and Trust Atlanta January 8, 1986 Montgomery, Alabama Company, Luverne, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 211 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. CBC, Inc. v. Board of Governors, No. 86-1001 (10th Populist Party of Iowa v. Federal Reserve Board, No. Cir., filed Jan. 2, 1986). 85-626-B (S.D. Iowa, filed Aug. 2, 1985). Carter v. Board of Governors, No. 85-4021 (6th Cir., Urwyler, et al. v. Internal Revenue Service, et al., No. filed Dec. 9, 1985). CV-F-85-402 REC (E.D. Cal., filed July 18, 1985). Howe v. United States, et al., No. 85-4504-C (D. Johnson v. Federal Reserve System, et al., No. S85- Mass., filed Dec. 6, 1985). 0958(R) and S85-1269(N) (S.D. Miss., filed July 16, Myers, et al. v. Federal Reserve Board, No. 85-1427 1985). (D. Idaho, filed Nov. 18, 1985). Wight, et al. v. Internal Revenue Service, et al., No. Souser, et al. v. Volcker, et al., No. 85-C-2370, et al. CIV S-85-0012 MLS (E.D. Cal., filed July 12,1985). (D. Colo., filed Nov. 1, 1985). Cook v. Spillman, et al., No. CIV S-85-0953 EJG Podolak v. Volcker, No. C85-0456, et al. (D. Wyo., (E.D. Cal., filed July 10, 1985). filed Oct. 28, 1985). Florida Bankers Association v. Board of Governors, Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa, No. 84-3883 and No. 84-3884 (11th Cir., filed filed Oct. 22, 1985). Feb. 15, 1985). Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 (D. Florida Department of Banking v. Board of Gover- Minn., filed Oct. 21, 1985). nors, No. 84-3831 (11th Cir., filed Feb. 15, 1985), Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D. and No. 84-3832 (11th Cir., filed Feb. 15, 1985). Neb., filed Oct. 16, 1985). Dimension Financial Corporation v. Board of Gover- Jensen v. Wilkinson, et al., No. 85-4436-S, et al. (D. nors, No. 84-1274 (U.S., filed Feb. 6, 1985). Kan., filed Oct. 10, 1985). Lewis v. Volcker, et al., No. C-l-85-0099 (S.D. Ohio, Alfson v. Wilkinson, et al., No. Al-85-267 (D. N.D., filed Jan. 14, 1985). filed Oct. 8, 1985). Brown v. United States Congress, et al., No. 84-2887- First National Bank of Blue Island Employee Stock 6(IG) (S.D. Cal., filed Dec. 7, 1984). Ownership Plan v. Board of Governors, No. 85- Melcher v. Federal Open Market Committee, No. 84- 2615 (7th Cir., filed Sept. 23, 1985). 1335 (D.D.C., filed Apr. 30, 1984). First National Bancshares II v. Board of Governors, Colorado Industrial Bankers Association v. Board of No. 85-3702 (6th Cir., filed Sept. 4, 1985). Governors, No. 84-1122 (10th Cir., filed Jan. 27, McHuin v. Volcker, et al., No. 85-2170 WARB (W.D. 1984). Okl., filed Aug. 29, 1985). First Bancorporation v. Board of Governors, No. 84- Independent Community Bankers Associaton of South 1011 (10th Cir., filed Jan. 5, 1984). Dakota v. Board of Governors, No. 84-1496 (D.C. Securities Industry Association v. Board of Gover- Cir., filed Aug. 7, 1985). nors, No. 80-2614 (D.C. Cir., filed Oct. 24, 1980), Florida Bankers Association, et al. v. Board of Gover- and No. 80-2730 (D.C. Cir., filed Oct. 24, 1980). nors, No. 85-193 (U.S., filed Aug. 5, 1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

53 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 Alb 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 MONETARY AND CREDIT AGGREGATES 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

54 Federal Reserve Bulletin • March 1986 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 SPECIAL TABLES SUMMAR Y STATISTICS A70 Terms of lending at commercial banks, A53 U.S. international transactions—Summary November 1985 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 1985 1985 Q1 Q2 Q3 Q4 Aug. Sept. Oct. Nov.' Dec. Reserves of depository institutions2 1 Total 17.4 12.2 16.4 12.1 16.5 8.7 4.0 20.0 22.1 2 Required 16.9 12.3 17.1 11.1 17.7 13.5 1.6 15.4 18.8 3 Nonborrowed 57.3 14.1 18.2 10.0 18.0 2.8 7.0 4.9 34.8 4 Monetary base3 8.2 7.5 10.2 8.4 13.3 7.0 6.1 10.1 9.4 Concepts of money, liquid assets, and debt4 3 Ml 10.6 10.2 15.0 8.9 20.3 11.9 -1.6 13.4 13.2 6 M2 12.1 5.3 10.2 5.9 11.3 7.1 2.0' 6.7 7.8 7 M3 10.7 5.3 8.3 6.7 9.8' 10.2' 3.9 5.6 7.1 8 L 10.lr 6.0 9.1' n.a. 12.4 10.9' 4.8 12.4 n.a. 9 Debt 13.5' 11.9' 12.2' 13.5 12.0 11.1' 11.7 15.6 n.a. Nontransaction components 10 In M25 12.5 3.8 8.7 4.9 8.4 5.5' 3.1' 4.6 6.0 11 In M3 only6 5.5 5.4' ,6r 10.2 3.8' 22.7' 11.6' 1.5 4.3 Time and savings deposits Commercial banks 12 Savings7 -8.7 -1.7 11.3 3.2 9.7 3.9 4.8 1.9 -5.7 13 Small-denomination time8 -1.8 6.5 -4.4 -2.7 -13.3 -4.1 -3.4' -.3 8.2 14 Large-denomination time910 2.6 8.3 -3.2 16.1 8.6 23.8 18.9 12.6 5.1 Thrift institutions 15 Savings7 2.2 3.1 14.7 10.7 22.9 6.8 14.2' 8.7 -2.0 16 Small-denomination time 1.7 3.9 -4.6 -3.1 -13.9 -6.6 -4.1 .5 9.8 17 Large-denomination time9 21.0 2.6 -2.8 8.5 -3.9 15.6 3.1 11.5 16.0 Debt components4 18 Federal 15.2 12.3 14.6 15.3 14.2 7.7 8.8' 25.1 n.a. 19 Nonfederal 13.C 11.8' 11.5' 13.0 11.4 12.2' 12.6' 12.7 n.a. 20 Total loans and securities at commercial banks" 10.1 9.7 9.6 8.8 6.5 8.2 2.0 16.4 16.6 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 based on monthly averages. 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. official 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 Financial Statistics • March 1986 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending Factors 1985 1985 Oct. Nov. Dec. Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 193,817 196,936 203,644 198,178 196,468 198,854 199,327 201,454 203,121 204,641 2 U.S. government securities1 170,018 171,234 178,242 172,407 171,242 171,384 173,638 176,785 178,203 178,911 3 Bought outright 170,018 170,943 177,120 172,180 170,222 171,384 171,397 176,574 177,874 177,887 4 Held under repurchase agreements 0 291 1,122 227 1,020 0 2,241 211 329 1,024 5 Federal agency obligations 8,227 8,362 8,661 8,476 8,556 8,227 8,811 8,310 8,325 8,703 6 Bought outright 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 7 Held under repurchase agreements 0 135 434 249 329 0 584 83 98 476 8 Acceptances 0 0 0 0 0 0 0 0 0 0 9 Loans 1,140 1,920 1,107 791 1,565 4,282 1,573 681 1,001 948 10 Float 669 1,203 1,176 1,471 1,494 1,287 1,244 1,536 1,137 1,390 11 Other Federal Reserve assets 13,763 14,217 14,458 15,033 13,610 13,674 14,061 14,143 14,454 14,689 12 Gold stock 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 13 Special drawing rights certificate account.... 4,692 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 14 Treasury currency outstanding 16,943 16,994 17,037 16,985 16,997 17,009 17,020 17,028 17,036 17,043 ABSORBING RESERVE FUNDS 15 Currency in circulation 189,053' 191,396 195,367 191,389 191,553 191,743 193,737 194,589 194,747 195,944 16 Treasury cash holdings 543 553 557 554 554 554 556 556 560 557 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 3,006 2,925 3,499 3,064 3,008 2,587 2,258 2,565 3,776 3,577 18 Foreign 214 242 262 229 231 246 318 245 254 251 19 Service-related balances and adjustments 1,738 1,795 2,024 1,714 1,718 1,729 2,155 1,810 2,284 2,054 20 Other 446 574 488 473 667 518 554 438 530 449 21 Other Federal Reserve liabilities and capital 6,270 6,339 6,410 6,343 6,267 6,390 6,484 6,526 6,331 6,334 22 Reserve balances with Federal Reserve Banks2 25,272 25,914 27,882 27,207 25,274 27,903 26,093 27,562 27,484 28,326 End-of-month figures Wednesday figures 1985 1985 Oct. Nov. Dec. Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 192,884 194,729 210,598 201,217 191,810 192,701 210,853 205,123 207,752 204,384 24 U.S. government securities1 168,705 169,168 181,327 172,282 163,594 167,889 182,177 178,907 179,578 177,730 25 Bought outright 168,705 169,168 177,798 172,282 163,594 167,889 175,149 177,434 177,276 177,730 26 Held under repurchase agreements.... 0 0 3,529 0 0 0 7,028 1,473 2,302 0 27 Federal agency obligations 8,227 8,227 9,921 8,227 8,227 8,227 9,736 8,806 8,912 8,227 28 Bought outright 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 29 Held under repurchase agreements 0 0 1,694 0 0 0 1,509 579 685 0 30 Acceptances 0 0 0 0 0 0 0 0 0 0 31 Loans 886 1,602 3,060 758 4,682 924 3,927 719 2,293 1,362 32 Float 335 909 988 4,653 1,527 1,848 511 2,177 1,942 2,219 33 Other Federal Reserve assets 14,731 14,823 15,302 15,297 13,780 13,813 14,502 14,514 15,027 14,846 34 Gold stock 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 35 Special drawing rights certificate account ... 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 36 Treasury currency outstanding 16,971 17,019 17,052 16,995 17,007 17,019 17,027 17,035 17,043 17,043 ABSORBING RESERVE FUNDS 37 Currency in circulation 189,490 193,463 197,465 192,022 191,441 193,131 194,491 194,793 195,122 196,668 38 Treasury cash holdings 547 556 550 554 554 556 556 559 557 554 Deposits, other than reserve balances with Federal Reserve Banks 39 Treasury 1,528 2,294 9,351 3,310 2,652 2,331 2,293 1,629 3,351 3,286 40 Foreign 268 340 480 229 236 250 320 260 303 209 41 Service-related balances and adjustments .... 1,469 1,483 1,490 1,481 1,481 1,484 1,483 1,497 1,498 1,491 42 Other 372 598 1,041 479 534 440 449 472 487 413 43 Other Federal Reserve liabilities and capital 6,339 6,475 5,940 6,096 6,018 6,004 6,462 6,190 6,168 6,385 44 Reserve balances with Federal Reserve Banks2 25,650 22,347 27,141 29,849 21,708 21,332 37,634 32,566 33,117 28,229 1. Includes securities loaned—fully guaranteed by U.S government securities 2. Excludes required clearing balances and adjustments to compensate for pledged with Federal Reserve Banks—and excludes (if any) securities sold and float. scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages8 RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1982 1983 1984 1985 Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss11111 24,939 21,138 21,738 22,385 23,367 23,503 23,415 24,972 25,431 26,385 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh22222 20,392 20,755 22,316 21,898 22,180 22,530 22,839 22,465 22,724 22,457 33333 VVVVVaaaaauuuuulllllttttt cccccaaaaassssshhhhh uuuuussssseeeeeddddd tttttooooo sssssaaaaatttttiiiiisssssfffffyyyyy rrrrreeeeessssseeeeerrrrrvvvvveeeee rrrrreeeeeqqqqquuuuuiiiiirrrrreeeeemmmmmeeeeennnnntttttsssss33333 ..... 17,049 17,908 18,958 18,666 18,985 19,300 19,548 19,475 20,038 19,997 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 3,343 2,847 3,358 3,231 3,196 3,230 3,291 2,990 2,686 2,460 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss55555 41,853 38,894 40,696 41,051 42,352 42,803 42,963 44,447 44,469 46,382 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 41,353 38,333 39,843 40,247 41,447 41,948 42,135 43,782 44,716 45,454 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss66666 500 561 853 804 905 855 827 666 753 928 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 697 774 3,186 1,334 1,205 1,107 1,073 1,289 1,187 1,741 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 33 96 113 165 151 167 221 203 172 107 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 187 2 2,604 534 665 507 570 656 629 530 Biweekly averages of daily figures for weeks ending 1985 and 1986 Sept. 11 Sept. 25 Oct. 9 Oct. 23 Nov. 6 Nov. 20 Dec.4r Dec. 18' Jan. 1 Jan. 15 1111111111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss''''' 43,509 44,800 25,553 25,232 25,643 26,242 27,029 27,503 27,943 28,471 1111122222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh22222 21,887 22,705 23,067 22,831 22,151 22,528 22,543 22,464 23,612 23,591 1111133333 VVVVVaaaaauuuuulllllttttt cccccaaaaassssshhhhh uuuuussssseeeeeddddd tttttooooo sssssaaaaatttttiiiiisssssfffffyyyyy rrrrreeeeessssseeeeerrrrrvvvvveeeee rrrrreeeeeqqqqquuuuuiiiiirrrrreeeeemmmmmeeeeennnnntttttsssss33333 ..... 18,880 19,766 19,971 20,294 19,667 20,117 20,028 20,199 21,035 21,270 1111144444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 3,008 2,939 3,097 2,538 2,484 2,412 2,515 2,265 2,577 2,322 1111155555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss55555 43,509 44,800 45,523 45,525 45,310 46,359 47,057 47,702 48,978 49,741 1111166666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 42,838 44,133 44,876 44,733 44,508 45,466 46,005 46,875 47,648 48,489 1111177777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss66666 672 667 647 793 802 893 1,052 828 1,330 1,252 1111188888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1,392 1,171 1,395 1,118 1,075 1,178 2,928 841 1,338 614 1111199999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 196 212 195 169 151 104 84 53 51 28 2222200000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 669 656 627 649 598 522 503 524 472 471 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 and 1986 week ending Monday BByy mmaattuurriittyy aanndd ssoouurrccee Nov. 18 Nov. 25 Dec. 2r Dec. 9' Dec. 16 Dec. 23 Dec. 30 Jan. 6 Jan. 13 One day and continuing contract 1 Commercial banks in United States 69,983r 66,797 70,688 74,994 70,735 68,338 65,939 72,134 71,450 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 30,383 33,679 31,775 34,067 34,198 33,875 32,376 33,421 34,812 3 Nonbank securities dealers 10,095 9,867 9,965 10,306 9,783 10,847 10,511 9,176 9,039 4 All other 27,453 30,288 27,660 29,696 29,388 29,060 26,184 26,474 26,202 All other maturities 5 Commercial banks in United States 9,333 9,778 9,848 9,078 9,114 9,6% 9,918 9,294 10,100 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,476 6,911 8,051 7,324 6,953 7,132 7,299 6,563 7,100 7 Nonbank securities dealers 8,733 8,093 8,746 7,755 8,509 8,477 8,062 8,066 10,207 8 All other 8,446 8,175 12,667 8,002 8,752 10,380 11,570 9,780 9,218 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 34,330 32,778 35,876 32,610 29,179 33,521 31,448 32,608 29,590 10 Nonbank securities dealers 8,979 8,234 8,810 9,948 9,918 8,785 8,976 9,235 10,088 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 Financial Statistics • March 1986 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit2 SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt11 First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 1/29/86 date rate 1/29/86 rate 1/29/86 rate 1/29/86 rate IVI Vi Vi Boston 5/20/85 71/2 8 9 9 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 D Sa a n ll a F s rancisco... m 5 5 / / 2 2 0 1 / / 8 8 5 5 71/2 8>4 9 91/2 10 5 5 / / 2 2 0 1 / / 8 8 5 5 Range of rates in recent years3 Range (or F.R. Range (or F.R. Range (or F.R. 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 of n 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. 71/4 In effect Dec. 31, 1973 7'4 m July 3 7-7711//44 1981— May 8 14 14 1974— Apr. 25 71/2-8 8 10 77'3/4/ 4 Nov. 26 13-14 13 30 8 8 Aug. 21 73/4 13 13 Dec. 9 73A-8 73/4 Sept. 22 8 88 % Dec. 4 12 12 16 73/4 73/4 Oct. 16 8m-8 V i m 20 m-9i/z 1982— July 20 111/4-12 ll'/2 1975— Jan. 1 6 0 7 7 V 1/ 4 4 - - 7 73 3 / / 4 4 7 7 1 3 / / 4 4 Nov. 3 1 9 i/i 9 9V !h i Aug. 2 2 3 II 1 - 1 H 1 V /2 2 1 ll 1 ! 4 24 71/4 71/4 3 Feb. 5 63/4-71/4 63/4 July 20 10 10 16 10'/2 101/4 7 63/4 63/4 Aug. 17 10-10Vi IOV2 27 10-101/2 10 Mar. 10 6V4-63/4 6'/4 20 lOVi lOVi 30 10 10 14 6V4 61/4 Sept. 19 IO'4-I1 11 Oct. 12 91/2-10 91/2 May 16 6-61/4 6 21 11 11 13 91/2 914 23 6 6 Oct. 8 11-12 12 Nov. 22 9-9'/2 9 10 12 12 26 9 9 1976— Jan. 19 514-6 5'4 Dec. 14 8W-9 9 23 51/2 5V4 Feb. 15 12-13 13 15 8W-9 81/2 Nov. 22 51/4-514 51/4 19 13 13 17 8Vi 81/2 26 51/4 51/4 May 29 12-13 13 30 12 12 1984— Apr. 9 81/2-9 9 1977— Aug. 30 51/4-53/4 51/4 June 13 11-12 11 13 9 9 Sept. 3 2 1 514 5 - 3 5 /4 3/ 4 5 5 3 3 / / 4 4 Julv 2 1 8 6 10 1 - 1 1 1 1 1 1 0 Nov. 2 2 1 6 8V m 4 -9 8 8 1 1 / / 2 2 Oct. 26 6 6 29 10 10 Dec. 24 8 8 Sept. 26 11 11 1978— Jan. 9 6-6'/2 6!4 Nov. 17 12 12 1985— May 20 714-8 714 20 6V4 6V2 Dec. 5 12-13 13 2 4 714 71/2 May 1 1 1 2 6V 1 2-1 7 7 5 13 1 - 3 1 4 1 1 4 3 In effect Jan. 29, 1986 7Vi 71/2 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 8!4 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 TTyy dd ppee ee pp oo oo ff ss ii dd tt ee ii pp nn oo tt ss ee ii rr tt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo oo ff ss ii dd tt ee ii pp nn oo ttee ss rr ii vv tt,, aa ll aa 55 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand2 Net transaction accounts1 $ 7 12/30/76 $0—$31.7 million 3 12/31/85 9 l/i 12/30/76 Over $31.7 million 1122 1122//3311//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 1 xh 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 All types 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 2Vi 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97- Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report 320) provides that $2 million of reservable liabilities (transaction accounts, for 1976, table 13. Under provisions of the Monetary Control Act, depository nonpersonal time deposits, and Eurocurrency liabilities) of each depository institutions include commercial banks, mutual savings banks, savings and loan institution be subject to a zero percent reserve requirement. The Board is to adjust associations, credit unions, agencies and branches of foreign banks, and Edge Act the amount of reservable liabilities subject to this zero percent reserve requirecorporations. ment each year for the next succeeding calendar year by 80 percent of the 2. Requirement schedules are graduated, and each deposit interval applies to percentage increase in the total reservable liabilities of all depository institutions, that part of the deposits of each bank. Demand deposits subject to reserve measured on an annual basis as of June 30. No corresponding adjustment is to be requirements were gross demand deposits minus cash items in process of made in the event of a decrease. Effective Dec. 9, 1982, the amount of the collection and demand balances due from domestic banks. exemption was established at $2.1 million. Effective with the reserve maintenance The Federal Reserve Act as amended through 1978 specified different ranges of period beginning Jan. 1, 1985, the amount of the exemption is $2.4 million. requirements for reserve city banks and for other banks. Reserve cities were Effective with the reserve computation period beginning Dec. 31, 1985, the designated under a criterion adopted effective Nov. 9, 1972, by which a bank amount of the exemption is $2.7 million. In determining the reserve requirements having net demand deposits of more than $400 million was considered to have the of a depository institution, the exemption shall apply in the following order: (1) character of business of a reserve city bank. The presence of the head office of nonpersonal money market deposit accounts (MMDAs) authorized under 12 CFR such a bank constituted designation of that place as a reserve city. Cities in which section 1204.122; (2) net NOW accounts (NOW accounts less allowable deducthere were Federal Reserve Banks or branches were also reserve cities. Any tions); (3) net other transaction accounts; and (4) nonpersonal time deposits or banks having net demand deposits of $400 million or less were considered to have Eurocurrency liabilities starting with those with the highest reserve ratio. With the character of business of banks outside of reserve cities and were permitted to respect to NOW accounts and other transaction accounts, the exemption applies maintain reserves at ratios set for banks not in reserve cities. only to such accounts that would be subject to a 3 percent reserve requirement. Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances 6. For nonmember banks and thrift institutions that were not members of the due from domestic banks to their foreign branches and on deposits that foreign Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent 1987. For banks that were members on or after July 1, 1979, but withdrew on or respectively. The Regulation D reserve requirement of borrowings from unrelated before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends banks abroad was also reduced to zero from 4 percent. on Oct. 24, 1985. For existing member banks the phase-in period of about three Effective with the reserve computation period beginning Nov. 16, 1978, years was completed on Feb. 2, 1984. All new institutions will have a two-year domestic deposits of Edge corporations were subject to the same reserve phase-in beginning with the date that they open for business, except for those requirements as deposits of member banks. institutions that have total reservable liabilities of $50 million or more. 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as 7. Transaction accounts include all deposits on which the account holder is Christmas and vacation club accounts were subject to the same requirements as permitted to make withdrawals by negotiable or transferable instruments, paysavings deposits. ment orders of withdrawal, and telephone and preauthorized transfers (in excess The average reserve requirement on savings and other time deposits before of three per month) for the purpose of making payments to third persons or others. implementation of the Monetary Control Act had to be at least 3 percent, the However, MMDAs and similar accounts offered by institutions not subject to the minimum specified by law. rules of the Depository Institutions Deregulation Committee (DIDC) that permit 4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent no more than six preauthorized, automatic, or other transfers per month of which was imposed on large time deposits of $100,000 or more, obligations of affiliates, no more than three can be checks—are not transaction accounts (such accounts and ineligible acceptances. This supplementary requirement was eliminated with are savings deposits subject to time deposit reserve requirements.) the maintenance period beginning July 24, 1980. 8. The Monetary Control Act of 1980 requires that the amount of transaction Effective with the reserve maintenance period beginning Oct. 25, 1979, a accounts against which the 3 percent reserve requirement applies be modified marginal reserve requirement of 8 percent was added to managed liabilities in annually by 80 percent of the percentage increase in transaction accounts held by excess of a base amount. This marginal requirement was increased to 10 percent all depository institutions determined as of June 30 each year. Effective Dec. 31, beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and 1981, the amount was increased accordingly from $25 million to $26 million; was eliminated beginning July 24, 1980. Managed liabilities are defined as large effective Dec. 30, 1982, to $26.3 million; effective Dec. 29, 1983, to $28.9 million; time deposits, Eurodollar borrowings, repurchase agreements against U.S. effective Jan. 1, 1985, to $29.8 million; and effective Dec. 31, 1985, to $31.7 government and federal agency securities, federal funds borrowings from non- 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 Vh 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. week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and balances declined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • March 1986 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions1 Percent per annum Commercial banks mut S u a al v i s n a g v s i n a g n s d b l a o n an k s a ( s t s h o r c if i t a t i i n o s n t s it u a t n io d n s)1 In effect Jan. 31, 1986 In effect Jan. 31, 1986 TTTyyypppeee ooofff dddeeepppooosssiiittt Percent Effective date Percent Effective date 2 1 N Sa e v g i o n t g ia s b le order of withdrawal accounts 5(<2/2) 1 1 / / 1 1 / / 8 8 4 6 5 ( l 2 /l ) 7 1 / / 1 1 / / 7 8 9 6 3 Money market deposit account (3) 12/14/82 (3) 12/14/82 Time accounts 4 7-31 days (4) 1/1/86 (4) 9/1/86 1100//11//8833 1100//11//8833 1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable balance of $2,500 not subject to interest rate restrictions. Effective Jan. 1, 1985, by commercial banks and thrift institutions on various categories of deposits were the minimum denomination and average balance maintenance requirements was removed. For information regarding previous interest rate ceilings on all catego- lowered to $1,000. Effective Jan. 1, 1986, the minimum denomination and average ries of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the balance maintenance requirements were removed. No minimum maturity period Federal Home Loan Bank Board Journal, and the Annual Report of the Federal is required for this account, but depository institutions must reserve the right to Deposit Insurance Corporation. require seven days, notice before withdrawals. Depository institutions may not 2. Before Jan. 1, 1986, NOW accounts with minimum denomination require- guarantee a rate of interest for this account for a period longer than one month or ments of less than $1,000 were subject to an interest rate ceiling of 5'A percent. condition the payment of a rate on a requirement that the funds remain on deposit NOW accounts with minimum required denominations of $1,000 or more and for longer than one month. IRA/Keough (HR10) Plan accounts were not subject to interest rate ceilings. 4. Before Jan. 1, 1986, deposits of less than $1,000 were subject to an interest Effective Jan. 1, 1986, the minimum denomination requirement was removed. rate ceiling of 5'/> percent. Deposits of less than $1,000 issued to governmental 3. Effective Dec. 14, 1982, depository institutions are authorized to offer a new units were subject to an interest rate ceiling of 8 percent. Effective Jan. 1, 1986, account with a required initial balance of $2,500 and an average maintenance the minimum denomination requirement was removed. 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 1984 May July Aug. Sept Oct. Nov. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 17,067 18,888 20,036 274 2,0990 0 3,056 1,171 0 2 3 G Ex ro c s h s a n s g a e le s 8,369 0 3,420 0 8,557 0 417 0 0 0 0 0 0 0 350 0 265 0 4 Redemptions 3,000 2,400 7,700 800 200 0 0 0 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 1 a se y s e ar 312 0 484 0 1,12 0 6 0 0 0 0 0 0 0 0 0 0 0 0 7 Maturity shift 17,295 18,887 16,354 2,443 1,3120 1,238 4,895 1,028 529 9 8 R Ex ed c e h m an p g t e i ons -14,164 0 -16,55 8 3 7 -20,840 0 -2,945 0 0 -1,778 0 -3,275 0 -1,807 0 -94 0 2 ' 1 1 1 0 1 t G G o r r 5 o o s s s s y e p s a a u r l s r e c s h ases 1,79 0 7 1,89 0 6 1,63 0 8 0 0 0 0 0 0 0 6 0 0 0 0 12 Maturity shift -14,524 -15,533 -13,709 -2,101 -1,3120 -1,153 -3,760 -1,028 -520 13 Exchange 11,804 11,641 16,039 1,940 1,778 1,825 1,807 942 5 to 10 years 0 0 1 1 4 5 G G r r o o s s s s p sa u l r e c s h ases 388 0 890 0 5 3 3 0 6 0 0 0 6 0 16 Maturity shift -2,172 -2,450 -2,371 42 -1,136 -100 17 Exchange 2,128 2,950 2,750 600 800 Over 10 years 0 1 1 8 9 G G r r o o s s s s p sa u l r e c s h ases 30 0 7 38 0 3 441 0 0 0 0 20 Maturity shift -601 -904 -275 -384 0 21 Exchange 234 1,962 2,052 405 650 All maturities 0 22 Gross purchases 19,870 22,540 23,476 274 2,0990 0 3,068 1,171 23 Gross sales 8,369 3,420 7,553 417 0 0 0 2650 24 Redemptions 3,000 2,487 7,700 800 0 200 0 0 Matched transactions 25 Gross sales 543,804 578,591 808,986 78,870 81,016 60,980 64,263 73,925 100,929 26 Gross purchases 543,173 576,908 810,432 77,597 83,782 59,165 64,209 72,347 100,197 Repurchase agreements 27 Gross purchases 130,774 105,971 139,441 21,716 2,801 10,486 1,928 14,029 28 Gross sales 130,286 108,291 139,019 29,168 2,801 10,486 1,928 14,029 29 Net change in U.S. government securities 8,358 12,631 8,908 -9,668 4,865 -2,015 3,014 FEDERAL AGENCY OBLIGATIONS Outright transactions 3 3 0 1 G G r r o o s s s s p sa u l r e c s h ases 0 0 0 0 32 Redemptions 292 256 Repurchase agreements 33 Gross purchases 18,957 8,833 1,205 1,336 2,439 354 3,522 34 Gross sales 18,638 9,213 817 1,867 2,439 354 3,522 35 Net change in federal agency obligations. 130 -672 132 -540 -60 -46 -30 BANKERS ACCEPTANCES 0 0 36 Repurchase agreements, net 1,285 -1,062 -418 0 0 0 37 Total net change in System Open Market Account 9,773 10,897 6,116 -10,208 4,805 -2,061 2,984 -997 NOTE: Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • March 1986 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1985 1985 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Oct. Nov. Dec. 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 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 3 Coin 508 496 493 505 498 524 504 487 Loans 4 To depository institutions 924 3,927 719 2,293 1,362 886 1,602 3,060 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8 Held under repurchase agreements 0 1,509 579 685 0 0 0 1,694 U.S. government securities Bought outright 9 Bills 77,383 84,328 85,061 84,903 85,357 78,234 78,347 85,425 10 Notes 66,107 66,292 67,647 67,647 67,647 66,072 66,292 67,647 11 Bonds 24,399 24,529 24,726 24,726 24,726 24,399 24,529 24,726 12 Total bought outright1 167,889 175,149 177,434 177,276 177,730 168,705 169,168 177,798 13 Held under repurchase agreements 0 7,028 1,473 2,302 0 0 0 3,529 14 Total U.S. government securities 167,889 182,177 178,907 179,578 177,730 168,705 169,168 181,327 15 Total loans and securities 177,040 195,840 188,432 190,783 187,319 177,818 178,997 194,308 16 Cash items in process of collection 8,702 7,279 8,445 8,865 10,796 5,843 5,915 10,147 17 Bank premises 600 601 602 604 604 595 600 607 Other assets 18 Denominated in foreign currencies2 6,644 6,834 6,836 6,845 6,848 6,530 6,834 7,016 19 All other3 6,569 7,067 7,076 7,578 7,394 7,606 7,389 7,679 20 Total assets 215,871 233,925 227,692 230,988 229,267 214,724 216,047 236,052 LIABILITIES 21 Federal Reserve notes 177,176 178,516 178,810 179,141 180,677 173,590 177,504 181,450 Deposits 22 To depository institutions 22,816 39,117 34,063 34,615 29,720 27,119 23,830 28,631 23 U.S. Treasury—General account 2,331 2,293 1,629 3,351 3,286 1,528 2,294 9,351 24 Foreign—Official accounts 250 320 260 303 209 268 340 480 25 Other 440 449 472 487 413 372 598 1,041 26 Total deposits 25,837 42,179 36,424 38,756 33,628 29,287 27,062 39,503 27 Deferred availability cash items 6,854 6,768 6,268 6,923 8,577 5,508 5,006 9,159 2,141 2,407 2,331 2,297 2,236 2,335 2,306 2,378 28 Other liabilities and accrued dividends4 212,008 229,870 223,833 227,117 225,118 210,720 211,878 232,490 29 Total liabilities CAPITAL ACCOUNTS 1,773 1,775 1,776 1,779 1,779 1,762 1,773 1,781 3301 CSuarppitlauls paid in 1,626 1,626 1,626 1,626 1,626 1,626 1,626 1,781 464 654 457 466 744 616 770 0 32 Other capital accounts 215,871 233,925 227,692 230,988 229,267 214,724 216,047 236,052 33 Total liabilities and capital accounts 34 MEMcOu:s tModayr kfeotra bfoler eUig.nS .a ngdo vienrtnermneantito nsealc uarcitcioeus nht eld in 126,551 127,174 125,661 125,935 125,161 123,099 127,566 125,624 Federal Reserve note statement 35 Federal Reserve notes outstanding 208,797 209,548 210,213 209,909 209,189 206,884 208,830 208,427 36 LESS: Held by bank 31,621 31,032 31,403 30,768 28,512 33,294 31,326 26,977 37 Federal Reserve notes, net 177,176 178,516 178,810 179,141 180,677 173,590 177,504 181,450 Collateral held against notes net: 38 Gold certificate account 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 39 Special drawing rights certificate account 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. government and agency securities .. 161,368 162,708 163,002 163,333 164,869 157,782 161,696 165,642 42 Total collateral 177,176 178,516 178,810 179,141 180,677 173,590 177,504 181,450 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. NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For 2. Assets shown in this line are revalued monthly at market exchange rates. address, see inside front cover. 3. Includes special investment account at Chicago of Treasury bills maturing 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 TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1985 1985 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Oct. 31 Nov. 29 Dec. 31 1 Loans—Total 924 3,927 719 2,293 1,362 886 1,602 3,060 2 Within 15 days 884 3,892 683 2,270 1,355 829 1,564 3,033 3 16 days to 90 days 40 35 36 23 7 57 38 27 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 167,889 182,177 178,907 179,578 177,730 168,705 169,168 181,327 10 Within 15 days1 8,332 13,662 9,552 10,386 7,948 1,133 1,558 9,307 11 16 days to 90 days 35,441 40,332 39,680 39,518 42,115 37,043 41,194 43,462 12 91 days to 1 year 53,674 57,226 57,309 57,309 55,301 58,933 55,659 56,364 13 Over 1 year to 5 years 34,755 34,955 35,822 35,822 35,822 35,277 34,755 35,650 14 Over 5 years to 10 years 14,256 14,440 14,785 14,785 14,785 14,856 14,440 14,785 15 Over 10 years 21,431 21,562 21,759 21,758 21,759 21,463 21,562 21,759 16 Federal agency obligations—Total 8,227 9,736 8,806 8,912 8,227 8,227 8,227 9,921 17 Within 15 days1 273 1,673 579 827 143 84 273 1,836 18 16 days to 90 days 504 645 835 692 754 668 504 962 19 91 days to 1 year 1,820 1,779 1,676 1,676 1,614 1,757 1,820 1,471 20 Over 1 year to 5 years 4,070 4,080 4,092 4,092 4,092 4,141 4,070 4,056 21 Over 5 years to 10 years 1,161 1,160 1,215 1,216 1,215 1,178 1,161 1,187 22 Over 10 years 399 399 409 409 409 399 399 409 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

A48 Domestic Nonfinancial Statistics • March 1986 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1985 11998822 11998833 11998844 11998855 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. May June July Aug. Sept. Oct. Nov/ Dec. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS11 11 TToottaall rreesseerrvveess22 34.28 36.14 39.08 45.19 41.32 42.18 42.61 43.19 43.51 43.65 44.38 45.19 22 NNoonnbboorrrroowweedd rreesseerrvveess 33.65 35.36 35.90 43.87 39.99 40.97 41.50 42.12 42.22 42.46 42.64 43.87 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt33 33.83 35.37 38.50 44.37 40.52 41.64 42.01 42.69 42.87 43.09 43.17 44.37 44 RReeqquuiirreedd rreesseerrvveess 33.78 35.58 38.23 44.13 40.52 41.27 41.75 42.37 42.84 42.90 43.45 44.13 55 MMoonneettaarryy bbaassee44 170.14 185.49 199.03 216.94 205.35 207.66 208.83 211.15 212.38 213.46 215.25 216.94 Not seasonally adjusted 6 Total reserves2 35.01 36.86 40.13 46.41 40.64 41.% 42.41 42.60 43.22 43.75 44.62 46.41 7 Nonborrowed reserves 34.37 36.09 36.94 45.09 39.31 40.75 41.30 41.52 41.93 42.56 42.88 45.09 8 Nonborrowed reserves plus extended credit3 34.56 36.09 39.55 45.59 39.84 41.42 41.81 42.09 42.59 43.19 43.41 45.59 9 Required reserves 34.51 36.30 39.28 45.35 39.84 41.05 41.55 41.77 42.56 42.99 43.70 45.35 10 Monetary base4 173.17 188.76 202.02 219.98 204.54 207.99 210.26 211.23 211.81 212.97 215.64 219.98 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 41.85 38.89 40.70 48.15 41.05 42.35 42.80 42.96 44.45 45.47 46.38 48.15 12 Nonborrowed reserves 41.22 38.12 37.51 46.83 39.72 41.15 41.70 41.89 43.16 44.28 44.64 46.83 13 Nonborrowed reserves plus extended credit3 41.41 38.12 40.09 47.41 40.45 41.88 42.23 42.50 43.83 44.90 45.07 47.41 14 Required reserves 41.35 38.33 39.84 47.08 40.25 41.45 41.95 42.14 43.78 44.72 45.45 47.08 15 Monetary base4 180.52 192.36 202.59 221.72 204.94 208.39 210.65 211.60 213.04 214.69 217.40 221.72 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 nonboirowed 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 1982 1983 1984 1985 Dec. Dec. Dec. Dec. Sept. Oct. Nov.' Dec. Seasonally adjusted 1 Ml 480.8 528.0 558.5 624.7 611.9 611.1 617.9 624.7 ? M2 1,954.9 2,188.8 2,371.7 2,563.6 2,528.8' 2,533.0' 2,547.1 2,563.6 M3 2,446.8 2,701.8 2,995.0 3,213.4 3,169.3' 3,179.7' 3,194.5 3,213.4 4 L 2,854.7 3,168.8 3,541.3 n.a. 3,766.7' 3,781.7 3,820.7 n.a. 5 Debt 4,649.8 5,177.1' 5,927.C n.a. 6,479.2' 6,542.1' 6,626.0 n.a. Ml components 6 Currency2 134.3 148.4 158.7 170.8 167.9 168.8 170.0 170.8 7 Travelers checks3 4.3 4.9 5.2 5.9 5.9 5.9 5.9 5.9 8 Demand deposits4 238.6 243.5 248.6 270.9 266.8 264.0 266.3 270.9 9 Other checkable deposits5 103.5 131.3 146.0 177.1 171.3 172.4 175.7 177.1 Nontransactions components 10 In M26 1,474.0 1,660.8 1,813.3 1,938.9 1,916.9' 1,921.9' 1,929.2 1,938.9 11 In M3 only7 492.0 512.9 623.3 649.8 640.5' 646.7' 647.5 649.8 Savings deposits9 12 Commercial Banks 163.5 133.4 122.6 124.7 124.6 125.1 112255..33 124.7 13 Thrift institutions 194.4 173.6 166.0 180.2 177.1 179.2' 180.5 180.2 Small denomination time deposits9 14 Commerical Banks 379.8 350.7 387.0 384.2 382.8 381.7' 381.6 384.2 15 Thrift institutions 471.7 433.8 498.6 494.1 491.6 489.9 490.1 494.1 Money market mutual funds 16 General purpose and broker/dealer 185.2 138.2 167.5 175.8 176.7 177.0' 176.5 175.8 17 Institution-only 51.1 43.2 62.7 64.5 62.3 63.3 64.5 64.5 Large denomination time deposits10 18 Commercial Banks11 262.0 228.9 264.4 281.3 272.9 277.2 280.1 281.3 19 Thrift institutions 66.2 101.9 151.8 159.7 155.7 156.1 157.6 159.7 Debt components 20 Federal debt 979.2 1,173.0 1,367.4 n.a. 1,505.6 1,516.6 11,,554488..22 n.a. 21 Non-federal debt 3,670.6 4,004.1' 4,559.6' n.a. 4,973.6' 5,025.5' 5,077.7 n.a. Not seasonally adjusted 22 Ml 491.8 539.7 570.4 637.9 608.6 610.9' 620.1 637.9 23 M2 1,959.6 2,194.0 2,376.7 2,569.4 2,517.4' 2,529.6' 2,545.0 2,569.4 24 M3 2,454.4 2,709.2 3,002.2 n.a. 3,157.5' 3,174.2' 3,195.2 3,221.5 25 L 2,859.5 3,172.7 3,542.9 n.a. 3,754.7' 3,776.2 3,821.5 n.a. 26 Debt 4,644.6' 5,171.6 5,921.2 6,730.7 6,463.8' 6,528.4' 6,613.5 n.a. Ml components 27 Currency2 136.5 150.5 160.9 173.1 167.6 168.5 170.8 173.1 28 Travelers checks3 4.0 4.6 4.9 5.5 6.2 5.9 5.6 5.5 29 Demand deposits4 247.2 252.2 257.4 280.3 265.4' 265.4 268.5 280.3 30 Other checkable deposits5 104.1 132.4 147.2 179.0 169.3 171.2 175.3 179.0 Nontransactions components 31 M26 1,467.8 1,654.2 1,806.3 1,931.5 1,908.9' 1,918.7' 11,,992244..99 11,,993311..55 32 M3 only7 494.8 515.2 625.4 652.1 640.1' 644.5' 650.2 652.1 Money market deposit accounts 33 Commercial banks 26.3 230.5 267.1 332.4 321.2 324.3 329.2 332.4 34 Thrift institutions 16.9 148.7 147.9 176.6 175.5 176.8 177.3 176.6 Savings deposits8 3.1 Commercial Banks 162.1 132.2 121.4 123.5 123.7 124.5 124.2 123.5 36 Thrift institutions 193.2 172.5 164.9 178.9 176.0 179.0 179.6 178.9 Small denomination time deposits9 37 Commercial Banks 380.1 351.1 387.6 384.9 385.1' 384.8' 384.3 384.9 38 Thrift institutions 471.7 434.2 499.4 495.0 492.3 493.6 493.6 495.0 Money market mutual funds 39 General purpose and broker/dealer 185.2 138.2 167.5 175.8 176.7 177.0' 176.5 175.8 40 Institution-only 51.1 43.2 62.7 64.5 62.3 63.3 64.5 64.5 Large denomination time deposits10 41 Commercial Banks" 265.2 230.8 265.9 282.7 274.6' 278.2 280.1 282.7 42 Thrift institutions 65.9 101.4 151.1 158.9 156.3 157.4 158.2 158.9 Debt components 43 Federal debt 976.4 1,170.2 1,364.7 n.a. 1,506.9 1,515.5' 1,544.2 n.a. 44 Non-federal debt 3,668.2' 4,001.4 4,556.4 n.a. 4,956.9' 5,012.9' 5,069.3 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 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 June July Aug. Sept. Oct. Nov. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 90,914.4 109,642.3 128,440.8 146,714.9 157,128.3 147,455.5 159,593.3 162,205.4 163,038.1 2 Major New York City banks 37,932.9 47,769.4 57,392.7 66,615.5 69,952.8 65,645.6 72,765.4 76,706.3 77,069.6 3 Other banks 52,981.5 61,873.1 71,048.1 80,099.4 87,175.5 81,809.9 86,827.9 85,499.2 85,968.5 4 ATS-NOW accounts3 1,036.2 1,405.5 1,588.7 1,614.3 1,870.1 2,008.8 2,465.3 2,212.7 2,227.8 5 Savings deposits4 720.3 741.4 633.1 544.4 584.3 550.7 509.1 562.0 533.4 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 324.2 379.7 434.4 471.4 506.4 469.6 510.9 513.2 508.1 7 Major New York City banks 1,287.6 1,528.0 1,843.0 2,104.9 2,131.4 1,965.4 2,326.3 2,422.2 2,368.5 8 Other banks 211.1 240.9 268.6 286.5 314.2 291.5 308.9 300.6 298.1 9 ATS-NOW accounts3 14.5 15.6 15.8 14.4 16.4 17.1 20.6 18.4 18.2 10 Savings deposits4 4.5 5.4 5.0 4.6 4.9 4.6 4.2 4.6 4.3 DEBITS TO Not seasonally adjusted Demand deposits2 11 All insured banks 91,031.8 109,517.6 128,059.1 148,651.5 157,898.2 152,985.1 148,788.8 167,639.3 157,070.9 12 Major New York City banks 38,001.0 47,707.4 57,282.4 67,999.4 70,496.1 68,401.8 68,967.9 78,010.5 73,982.4 13 Other banks 53,030.9 64,310.2 70,776.9 80,652.1 87,402.1 84,583.3 79,820.9 89,628.8 83,088.6 14 ATS-NOW accounts3 1,027.1 1,397.0 1,579.5 1,744.0 1,807.5 1,770.5 2,289.9 2,157.7 2,007.8 15 MMDA5 567.4 848.8 1,077.9 1,183.3 1,201.2 1,192.2 1,293.0 1,221.5 16 Savings deposits4 720.0 742.0 632.9 549.7 586.0 538.4 490.1 579.9 496.3 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 325.0 379.9 433.5 480.6 509.5 499.3 475.0 532.1 489.3 18 Major New York City banks 1,295.7 1,510.0 1,838.6 2,125.9 2,185.9 2,189.4 2,216.6 2,507.4 2,332.4 19 Other banks 211.5 240.5 267.9 290.8 314.8 307.4 282.9 315.7 287.2 20 ATS-NOW accounts3 14.4 15.5 15.7 15.5 15.9 15.3 19.4 18.1 16.4 ?1 MMDA5 2.8 3.5 3.5 3.5 3.8 3.7 4.0 3.7 22 Savings deposits4 4.5 5.4 5.0 4.6 4.8 4.5 4.1 4.8 4.0 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

A48 Domestic Nonfinancial Statistics • March 1986 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1985 Category Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Total loans and securities2 1,726.3 1,744.8 1,761.6 1,768.8 1,788.5 1,802.7 1,819.0 1,828.8 1,841.3 1,844.4 1,869.6 1,895.5 2 U.S. government securities, 260.3 266.0 267.1 261.4 266.3 267.1 271.6 271.4 273.1 270.0 275.0 270.7 3 Other securities 142.6 141.1 138.9 140.2 142.2 144.5 145.4 148.2 151.3 154.8 160.7 174.5 4 Total loans and leases2 1,323.4 1,337.7 1,355.6 1,367.1 1,380.0 1,391.0 1,402.1 1,409.2 1,416.9 1,419.7 1,433.9 1,450.3 5 Commercial and industrial 469.2 474.1 481.2 481.9 484.3 484.3 484.1 485.7 487.2 487.0 490.6 493.9 6 Bankers acceptances held3.. 5.1 6.2 6.4 5.4 4.9 4.7 5.1 5.0 4.7 4.7 4.9 5.2 7 Other commercial and industrial 464.1 468.0 474.9 476.5 479.3 479.6 479.0 480.7 482.5 482.3 485.7 488.6 8 U.S. addressees4 454.0 457.4 464.2 465.8 469.2 470.1 469.6 471.1 473.3 473.7 477.3 447799..88 9 Non-U.S. addressees4 10.2 10.6 10.7 10.7 10.1 9.5 9.4 9.6 9.2 8.6 8.4 88..88 10 Real estate 378.6 382.8 386.7 390.8 394.8 398.7 403.7 407.1 409.9 414.5 419.2 423.2 11 Individual 255.3 258.5 262.9 266.5 269.9 272.7 276.3 278.5 280.3 281.3 283.8 286.5 12 Security 31.9 31.6 32.8 35.1 37.5 40.0 40.3 36.7 38.1 37.9 3377..&& 3388..33 13 Nonbank financial institutions 31.4 30.9 30.6 31.1 31.5 31.2 31.6 32.3 32.5 32.4 33.2 33.4 14 Agricultural 39.9 39.6 39.5 39.4 39.4 39.4 39.6 39.6 40.1 40.3 40.5 4400..88 15 State and political subdivisions 47.0 46.7 47.0 47.2 47.5 47.5 47.8 48.8 48.8 49.3 50.0 52.4 16 Foreign banks 11.5 11.5 11.2 10.9 10.6 10.3 10.4 10.2 9.9 9.6 9.6 9.5 17 Foreign official institutions ... 7.0 7.1 7.0 7.0 7.0 6.8 6.7 6.5 6.7 6.9 7.0 7.1 18 Lease financing receivables... 15.6 15.8 16.1 16.4 16.7 17.0 17.3 17.5 17.6 17.7 17.9 18.2 19 All other loans 36.0 39.0 40.6 40.8 40.8 43.1 44.2 46.4 45.8 42.8 44.8 47.1 Not seasonally adjusted 20 Total loans and securities2 1,734.3 1,742.9 1,757.7 1,769.0 1,784.6 1,803.6 1,812.5 1,822.1 1,839.8 1,846.1 1,870.8 1,908.5 21 U.S. government securities 260.2 266.9 269.2 266.9 268.4 270.8 271.4 269.8 270.7 266.9 270.6 267.2 2 2 2 3 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 1,3 1 3 4 0 3 . . 6 4 1,3 1 3 4 4 1 . . 6 3 1,3 1 4 3 9 9 . . 4 1 1,3 1 6 3 2 9 . . 3 9 1,3 1 7 4 3 2 . . 4 8 1,3 1 8 4 8 4 . . 6 2 1,3 1 9 4 7 4 . . 2 0 1,4 1 0 4 4 7 . . 6 7 1,4 1 1 5 8 0 . . 4 7 1,4 1 2 5 4 4 . . 9 2 1,4 1 3 6 9 0 . . 4 8 1,4 1 6 7 4 6 . . 8 5 2 2 4 5 Co B m a m nk e e rc rs i al a c a c n e d p t i a n n d c u es s tr h i e a l l d . 3 .. . 471 5 . . 1 2 47 6 3. . 7 1 48 6 0 . . 3 8 48 5 2 . . 5 1 48 4 2 . . 9 8 48 4 2 . . 8 8 48 5 3. . 2 0 48 4 3 . . 9 5 48 4 7 . . 6 2 48 4 8 . . 6 0 49 4 1. . 0 8 497 5 . . 3 5 26 Other commercial and 2 2 7 8 U N . o i S n n . d - U u ad s . t S d r . r i a e l a s s d e d e r s e 4 s sees4... 4 4 6 5 1 5 5 0 . . . 9 6 3 4 4 6 5 1 7 7 0 . . . 6 5 1 4 4 7 6 1 4 4 0 . . . 5 3 2 4 4 7 6 9 6 6 . . . 9 6 7 4 4 7 6 7 9 8 . . . 9 6 3 4 4 7 6 9 7 8 . . . 9 3 6 4 46 7 9 8 8 . . . 5 7 2 4 46 7 9 9 8 . . . 6 0 6 4 4 7 8 3 9 2 . . . 1 4 6 4 4 8 7 3 9 4 . . . 4 1 3 4 4 7 8 7 6 9 . . . 1 2 1 4 4 8 9 1 1 1 0 . . . 8 8 0 29 Real estate 379.3 382.4 385.6 389.5 393.8 398.1 403.1 407.3 411.2 415.9 420.3 423.8 30 Individual 257.8 258.2 260.7 264.3 267.7 270.7 274.5 278.3 281.5 283.4 285.8 290.0 31 Security 33.0 30.8 32.2 35.0 36.0 39.9 38.3 35.8 36.7 37.7 39.5 43.0 32 Nonbank financial institutions 31.5 30.7 30.6 31.3 31.3 31.2 31.7 32.4 32.6 32.4 33.<y 33.6 33 Agricultural 39.3 38.8 38.6 38.8 39.3 39.9 40.4 40.5 40.9 40.9 40.6 40.4 34 State and political subdivisions 47.0 46.7 47.0 47.2 47.5 47.5 47.8 48.8 48.8 49.3 50.0 52.4 35 Foreign banks 11.7 11.5 11.0 10.5 10.3 10.0 10.3 9.9 10.1 9.9 9.8 10.1 36 Foreign official institutions .. 7.0 7.1 7.0 7.0 7.0 6.8 6.7 6.5 6.7 6.9 7.0 7.1 37 Lease financing receivables.. 15.8 16.0 16.3 16.4 16.7 16.9 17.2 17.4 17.5 17.6 17.7 18.1 38 All other loans 37.2 38.8 39.8 40.2 41.0 44.7 44.1 44.2 45.3 43.0 44.6 49.0 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 1985 Source Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total nondeposit funds 1 Seasonally adjusted2 102.5 113.9 116.9 105.2 112.0 112.6 108.5 112.9 111166..11 111188..88 112200..77 112266..22 2 Not seasonally adjusted 104.8 117.4 119.4 108.4 117.2 114.9 107.4 114.8 116.2 120.4 126.7 128.8 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 138.8 146.8 147.2 138.8 142.0 146.7 146.9 144.1 114466..33 114455..44 114499..00 115533..99 4 Not seasonally adjusted 141.1 150.2 149.7 141.9 147.2 149.0 145.8 146.0 146.4 147.0 155.0 156.5 5 Net balances due to foreign-related institutions, not seasonally adjusted -36.3 -32.8 -30.3 -33.5 -30.0 -34.1 -38.4 -31.2 --3300..22 --2266..66 --2288..33 --2277..77 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted4 -34.8 -31.6 -29.5 -32.4 -29.6 -32.5 -38.3 -32.8 -30.7 -28.7 --3300..33 -31.5 7 Gross due from balances 71.4 70.5 71.4 74.8 74.5 76.4 79.1 75.8 74.6 74.1 74.0 76.2 8 Gross due to balances 36.6 38.9 41.9 42.4 44.9 44.0 40.8 43.0 44.0 45.4 43.8 44.6 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted5 -1.5 -1.2 -.8 -1.1 -.5 -1.7 -.1 1.6 ..55 2.1 22..00 33..88 10 Gross due from balances 53.1 54.1 53.4 51.8 52.4 53.8 54.9 55.3 56.1 55.5 56.0 56.6 11 Gross due to balances 51.6 52.8 52.7 50.7 52.0 52.1 54.9 56.8 56.6 57.6 58.0 60.4 Security RP borrowings 12 Seasonally adjusted® 82.3 90.1 92.0 85.4 85.5 86.5 87.1 87.4 90.8 88.4 8877..99 94.0 13 Not seasonally adjusted 82.2 91.1 92.0 86.0 88.3 86.3 83.4 86.8 88.4 87.5 91.3 94.0 U.S. Treasury demand balances7 14 Seasonally adjusted 14.7 13.0 11.8 14.6 22.6 17.4 2244..99 16.7 15.3 3.8 1133..44'' 1199..00 15 Not seasonally adjusted 18.5 15.8 12.8 15.4 20.9 14.9 23.1 13.4 16.8 5.4 7.9' 14.6 Time deposits, $100,000 or more8 16 Seasonally adjusted 324.8 325.4 329.9 332.6 331.2 326.8 323.2 325.1 330.3 334.5r 336.6 337.1 17 Not seasonally adjusted 325.6 324.9 330.3 330.1 329.1 326.4 322.4 326.9 332.(K 335.5'' 336.6r 338.5 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

A48 Domestic Nonfinancial Statistics • March 1986 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars 1985 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov/ Dec. ALL COMMERCIAL BANKING INSTITUTIONS1 1 Loans and securities 1,875.9 1,883.4 1,899.2 1,908.6 1,927.3 1,948.5 1,952.1 1,969.9 1,979.1 2,027.7 2,059.3 2 Investment securities 382.2 383.7 383.9 390.3 392.1 392.3 393.7 397.0 396.3 404.6 413.6 3 U.S. government securities 248.1 251.1 250.4 254.4 255.3 256.1 254.2 254.4 249.3 251.8 249.9 4 Other 134.1 132.5 133.5 135.9 136.8 136.2 139.6 142.6 147.0 152.8 163.6 5 Trading account assets 27.6 23.7 23.5 23.5 23.1 22.3 24.2 26.4 25.0 32.0 31.1 6 Total loans 1,466.0 1,476.0 1,491.8 1,494.9 1,512.1 1,534.0 1,534.1 1,546.5 1,557.8 1,591.2 1,614.6 7 Interbank loans 128.8 126.0 130.9 124.0 123.1 133.0 128.6 129.1 131.7 147.0 149.6 8 Loans excluding interbank 1,337.3 1,350.0 1,360.9 1,370.8 1,388.9 1,401.0 1,405.5 1,417.5 1,426.1 1,444.1 1,465.0 9 Commercial and industrial 477.0 483.2 482.1 483.4 484.3 485.9 484.6 489.2 488.8 493.1 495.9 10 Real estate 383.3 386.9 390.7 395.8 400.0 405.6 409.3 412.8 418.3 421.8 425.0 11 Individual 259.0 261.4 265.2 268.5 272.1 276.1 280.0 282.1 285.1 286.8 291.1 12 All other 218.0 218.5 222.9 223.0 232.6 233.4 231.5 233.4 233.9 242.5 253.0 13 Total cash assets 189.4 183.6 187.6 202.3 190.4 198.0 188.4 188.2 190.1 207.7 211.6 14 Reserves with Federal Reserve Banks 19.6 19.8 22.9 20.7 21.6 21.0 24.5 24.9 19.6 20.5 27.6 15 Cash in vault 21.8 21.3 21.3 23.3 22.2 22.0 22.7 22.1 22.6 21.4 22.2 16 Cash items in process of collection ... 68.8 63.9 64.2 76.5 68.4 70.5 62.5 61.4 67.9 81.9 79.3 17 Demand balances at U.S. depository institutions 32.3 31.7 30.2 35.2 31.3 33.5 30.6 30.8 31.6 35.8 36.1 18 Other cash assets 46.8 46.9 49.0 46.6 46.8 51.0 48.2 49.1 48.4 48.1 46.5 19 Other assets 195.4 188.5 188.6 183.4 189.4 194.5 180.8 185.8 178.1 185.0 189.4 20 Total assets/total liabilities and capital ... 2,260.7 2,255.5 2,275.4 2,294.2 2,307.1 2,341.1 2,321.3 2,344.0 2,347.3 2,420.5 2,460.3 21 Deposits 1,619.5 1,627.5 1,638.5 1,661.5 1,659.8 1,685.0 1,676.9 1,683.0 1,705.6 1,743.9 1,763.6 22 Transaction deposits 459.5 457.9 465.6 480.3 474.0 492.3 475.4 474.9 491.4 521.9 536.4 23 Savings deposits 407.2 410.4 410.1 418.7 425.6 434.3 436.4 438.3 443.8 448.4 450.0 24 Time deposits 752.7 759.2 762.9 762.5 760.1 758.4 765.0 769.8 770.4 773.6 777.1 25 Borrowings 309.4 301.3 310.3 305.4 315.8 321.6 308.9 323.2 309.0 350.8 361.5 26 Other liabilities 182.2 177.0 175.6 176.0 179.7 181.1 182.0 183.6 177.9 170.6 178.5 27 Residual (assets less liabilities) 149.6 149.7 150.9 151.3 151.8 153.4 153.4 154.1 154.8 155.1 156.7 MEMO 28 U.S. government securities (including trading account) 269.6 268.6 266.7 269.3 271.0 270.0 268.3 271.5 265.1 271.7 265.7 29 Other securities (including trading account) 140.2 138.8 140.7 144.4 144.3 144.6 149.7 151.9 156.2 164.9 178.9 DOMESTICALLY CHARTERED COMMERCIAL BANKS2 30 Loans and securities 1,777.1 1,784.8 1,799.6 1,812.7 1,829.2 1,847.9 1,850.8 1,863.6 1,872.3 1,917.7 1,944.2 31 Investment securities 374.9 376.9 377.1 383.8 385.1 385.1 386.5 389.1 388.1 396.6 405.9 32 U.S. government securities 243.4 246.9 246.4 250.7 251.4 252.4 250.4 250.5 245.0 248.0 246.0 33 Other 131.5 130.1 130.7 133.1 133.8 132.7 136.0 138.6 143.1 148.7 159.9 34 Trading account assets 27.6 23.7 23.5 23.5 23.1 22.3 24.2 26.4 25.0 32.0 31.1 35 Total loans 1,374.6 1,384.1 1,399.0 1,405.5 1,420.9 1,440.5 1,440.1 1,448.1 1,459.2 1,489.1 1,507.2 36 Interbank loans 101.1 100.1 103.3 100.6 100.6 110.0 104.7 103.8 106.8 121.1 121.2 37 Loans excluding interbank 1,273.5 1,284.0 1,295.7 1,304.9 1,320.3 1,330.5 1,335.5 1,344.2 1,352.4 1,368.0 1,386.0 38 Commercial and industrial 431.9 436.0 436.5 436.6 436.0 437.6 435.7 437.9 437.4 440.0 442.0 39 Real estate 378.0 381.8 385.4 390.4 394.4 399.9 403.7 407.0 412.7 416.3 419.4 40 Individual 258.7 261.2 265.0 268.3 271.8 275.9 279.8 281.8 284.8 286.5 290.9 41 All other 204.8 205.0 208.7 209.6 218.1 217.2 216.3 217.5 217.5 225.2 233.7 42 Total cash assets 178.0 172.7 176.0 191.2 179.2 185.3 176.4 176.1 178.0 195.8 199.3 43 Reserves with Federal Reserve Banks 18.7 19.2 22.3 19.6 20.9 20.4 23.8 24.4 18.6 19.5 26.1 44 Cash in vault 21.8 21.3 21.3 23.2 22.2 22.0 22.6 22.0 22.6 21.4 22.2 45 Cash items in process of collection ... 68.5 63.7 63.9 76.2 68.2 70.3 62.2 61.1 67.7 81.6 79.0 46 Demand balances at U.S. depository institutions 31.0 30.4 28.8 33.8 29.8 32.2 29.0 29.4 30.2 34.0 34.4 47 Other cash assets 38.0 38.1 39.6 38.3 38.1 40.4 38.8 39.2 38.9 39.2 37.7 48 Other assets 139.0 137.2 137.5 131.5 137.7 144.9 132.6 133.3 132.0 137.1 141.2 49 Total assets/total liabilities and capital ... 2,094.2 2,094.7 2,113.1 2,135.4 2,146.2 2,178.1 2,159.8 2,173.0 2,182.3 2,250.6 2,284.8 50 Deposits 1,575.4 1,582.4 1,593.8 1,618.4 1,617.2 1,642.3 1,631.9 1,636.6 1,659.5 1,697.5 1,716.7 51 Transaction deposits 453.1 451.7 459.3 473.8 467.7 486.0 468.9 468.3 484.9 515.2 529.3 52 Savings deposits 406.1 409.2 408.9 417.5 424.3 432.9 435.1 436.9 442.4 446.9 448.5 53 Time deposits 716.2 721.6 725.6 727.1 725.2 723.3 727.9 731.4 732.2 735.4 738.9 54 Borrowings 247.6 240.6 248.5 246.1 253.8 258.4 249.6 259.0 248.0 280.5 290.0 55 Other liabilities 124.3 124.8 122.6 122.4 126.1 126.8 127.4 125.9 122.7 120.2 124.0 56 Residual (assets less liabilities) 146.9 147.0 148.3 148.6 149.1 150.7 150.8 151.5 152.2 152.5 154.0 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. Insured domestically chartered commercial banks include all member banks Wednesday of the month based on a sample of weekly reporting banks and and insured nonmember banks. quarter-end condition report data. Data for other banking institutions are estimates made for the last Wednesday of the month based on a weekly reporting 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 Account Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Dec. 31 1 Cash and balances due from depository institutions 109,386' 92,206' 99,262 108,122 101,713 107,263 104,125 121,438 2 Total loans, leases and securities, net 873,641' 891,817' 894,309' 902,671 886,893 910,057 908,262 926,834 3 U.S. Treasury and government agency 87,845 90,409 90,439 90,354 86,868 91,145 85,422 82,193 4 Trading account 18,724 21,339 19,892 18,994 15,810 19,081 15,776 13,278 5 Investment account, by maturity 69,122 69,070 70,547 71,361 71,058 72,064 69,647 68,915 6 One year or less 19,622 20,541 21,069 20,006 20,042 19,187 18,520 17,995 7 Over one through five years 35,375 34,683 35,286 35,092 34,407 34,778 33,760 33,328 8 Over five years 14,125 13,846 14,192 16,263 16,610 18,099 17,366 17,592 9 Other securities 54,984' 55,699' 58,424 59,144 59,983 62,959 67,888 79,448 10 Trading account 5,245 5,063 6,262 6,423 6,064 7,254 9,369 12,156 11 Investment account 49,739' 50,636' 52,162 52,721 53,919 55,706 58,519 67,293 12 States and political subdivisions, by maturity 44,335 45,224 46,713 47,254 48,450 50,114 52,900 61,579 13 One year or less 6,599 6,636 6,894 7,016 7,037 7,462 7,698 11,036 14 Over one year 37,736 38,587 39,820 40,238 41,412 42,652 45,202 50,544 15 Other bonds, corporate stocks, and securities 5,404' 5,413' 5,449 5,466 5,469 5,592 5,619 5,714 16 Other trading account assets 4,660 4,440 5,807 6,421 5,603 5,396 5,932 4,774 17 Federal funds sold2 57,185 64,826 61,179 68,035 58,485 63,246 59,190 60,932 18 To commercial banks 36,389 42,558 40,145 44,451 36,108 42,675 38,349 39,632 19 To nonbank brokers and dealers in securities 13,712 13,064 13,904 16.641 14,759 13,659 14,031 14,789 20 To others 7,084 9,205 7,130 6,943 7,618 6,911 6,810 6,510 21 Other loans and leases, gross3 687,588r 695,011' 696,967' 697,405 694,666 706,006 708,559 718,082 22 Other loans, gross3 673,146' 680,507' 682,426' 682,833 680,038 691,235 693,715 702,823 23 Commercial and industrial3 253,468' 254,21C 254,792' 256,358 254,026 254,955 255,245 260,067 24 Bankers acceptances and commercial paper 2,345 2,181 2,198 2,646 2,163 2,036 2,164 2,014 25 All other 251,124' 252,03C 252,594' 253,712 251,862 252,919 253,081 258,053 26 U.S. addressees 246,252 247,179' 247,644' 248,766 246,956 248,094 248,235 253,181 27 Non-U.S. addressees 4,872 4,850 4,949 4,946 4,906 4,826 4,846 4,872 2 2 4 4 4 4 3 3 3 3 3 3 3 3 3 3 8 9 2 3 0 1 0 1 5 6 7 8 9 2 3 4 O L A L E e l t l h S a e o S s R T T T T A r T e F : t o o h o o e o o l l L U N l C B e a f o r i d i o r l f s n f a o n o o a n o p t i e a n e a t n n e n m a a d r u p n h n s a a s s t k e b i r o c m e e n v r t s s i a c a a i a r s s n g c e i n n h e n n d i t e n i e t g e k t n a r a s d d u d o c n s g a a l r d f i d i r l o o y l l g i a o n e e e s e n l a v r g r a p c p a c i a e n f e s e b o c s o o o n i a s r e e i u s a g l 3 m r d n v n s i i l n n t t , d m a r t p e i o k u e f b c c n e r s e i r s c a l y n o r e a n e e a l s a i u l t s t r n r 3 a o n s s n v r n c n p u y t t e i d a a r h r b a i 3 n i o l n e l d e o d g d i s e t i U v u h x n o s i c e n p s s e f t r f t i i e c i i i t o o n u c t e f n u n i d i r d n s a i t i a t l i t S i o n u i e c n t n r s a i s e s a t s t l e i s t i u n t s i t o it n u s t ions .. , , , , , , , , , , , 6 8 4 0 9 2 0 8 4 5 9 9 7 6 7 4 2 6 9 3 5 2 7 5 2 7 7 2 4 6 4 1 2 4 8 0 4 8 1 0 9 3 4 1 3 0 6 c ' ' ' ' ' ' ' ' 6 1 1 1 4 7 2 2 3 7 2 2 1 1 1 1 1 4 6 5 6 5 1 3 1 7 9 6 3 5 4 0 , , , , , , , , , , , , , , , , 1 3 9 4 0 5 8 8 3 4 9 0 5 4 8 1 1 4 6 0 4 7 1 9 0 7 4 0 6 0 4 6 7 2 8 8 5 0 2 7 6 8 8 5 4 4 C 9 ' ' ' ' ' ' ' ' ' ' 6 1 1 1 4 3 7 2 2 2 7 1 1 1 2 1 4 6 1 1 5 3 8 5 0 3 9 7 5 4 9 1 , , , , , , , , , , , , , , , , 7 9 8 0 4 2 4 1 7 4 9 8 7 5 8 3 6 3 8 8 8 1 1 5 3 1 6 7 6 4 8 2 0 6 6 9 4 7 1 C 3 3 8 3 8 1 2 2 ' ' ' ' ' ' ' ' ' 6 1 1 1 4 7 2 3 3 7 1 1 1 3 1 1 6 2 8 5 1 5 3 5 0 8 4 3 5 7 0 1 , , , , , , , , , , , . , , , , 6 7 7 6 8 1 3 0 0 2 5 6 9 5 8 6 1 7 6 7 1 1 6 5 4 4 7 4 9 9 9 2 7 6 1 4 3 2 5 2 8 6 2 2 8 8 1 5 6 1 1 1 4 7 2 3 3 1 1 1 1 7 2 1 6 2 5 5 1 5 5 3 0 8 1 5 3 4 9 6 , , , , , , , , , , , , , , , , 6 9 8 6 9 0 2 8 2 7 5 1 8 6 6 0 5 3 7 5 5 1 4 7 3 9 3 4 1 6 2 7 4 9 6 0 9 9 1 0 8 2 7 3 3 8 0 1 6 1 1 1 4 8 3 2 2 3 1 7 1 1 3 1 3 6 7 2 5 5 2 5 3 1 3 9 4 7 1 2 , , , , , , , , , , , , , , , 5 2 3 , 4 0 2 8 2 8 3 6 4 7 8 1 0 9 1 1 4 6 3 4 7 3 6 2 7 5 1 4 % 7 1 4 3 2 8 8 4 4 9 2 2 0 5 0 6 1 1 1 4 8 2 2 3 3 1 7 1 1 1 3 2 6 9 5 5 3 5 2 3 2 9 3 8 4 1 2 , , , , , , , , , , , , , , , , 4 5 8 6 4 2 0 1 2 5 3 6 5 8 7 6 1 6 7 3 0 5 6 8 7 2 3 4 9 4 2 8 4 8 3 1 2 7 8 4 9 7 4 5 5 4 0 9 6 1 1 1 4 9 2 3 3 7 1 1 1 1 1 3 5 5 6 9 6 6 3 5 3 9 2 8 9 5 3 9 , , , , , , , , , , , , , , , , 1 7 7 5 4 1 9 4 2 0 4 8 5 2 5 0 2 6 2 6 8 7 8 4 8 6 2 5 5 6 3 3 7 1 4 2 6 0 6 2 4 0 4 2 3 0 6 2 44 Total assets 1,108,950' 1,110,968' 1,123,453r 1,141,418 1,117,753 1,149,135 1,145,076 1,187,304 1,147,246 45 Demand deposits 208,576 201,285 211,661 213,866 206,688 217,340 220,207 253,940 46 Individuals, partnerships, and corporations 158,297 151,076' 160,775' 161,800 156,207 160,592 164,722 190,705 47 States and political subdivisions 4,739 5,254 5,345 5,194 5,457 5,556 5,748 6,563 48 U.S. government 1,558 3,678 2,899 3,749 2,531 3,748 2,068 1,582 49 Depository institutions in United States 27,619 24,072 26,421 25,808 24,732 27,374 29,174 32,133 50 Banks in foreign countries 5,667 5,618 5,449 5,292 6,271 5,489 6,779 7,389 51 Foreign governments and official institutions 1,060 854 1,219 755 694 991 822 1,090 52 Certified and officers' checks 9,636 10,734 9,553 11,268 10,795 13,590 10,892 14,478 53 Transaction balances other than demand deposits 40,547 40,158 40,587 42,173 41,584 41,709 41,799 43,109 54 Nontransaction balances 478,537 479,542 479,732' 479,203 480,939 480,530 482,622 490,164 55 Individuals, partnerships and corporations 441,376 443,536 444,202' 444,274 445,450 444,588 446,601 453,082 56 States and political subdivisions 24,893 23,879 23,657' 23,181 23,570 23,588 23,830 24,812 57 U.S. government 492 502 535 540 551 559 548 522 58 Depository institutions in the United States 9,136 9,054 9,081 8,795 8,976 9,475 9,329 9,407 59 Foreign governments, official institutions and banks.... 2,641 2,570 2,258 2,413 2,392 2,321 2,313 2,339 60 Liabilities for borrowed money 216,790' 225,73C 228,476' 240,614 222,074 242,632 233,277 230,232 61 Borrowings from Federal Reserve Banks 250 4,124 365 3,311 260 1,667 812 2,395 62 Treasury tax-and-loan notes 3,218 622 9,454 908 204 11,596 15,681 16,906 63 All other liabilities for borrowed money4 213,322' 220,985' 218,657' 236,395 221,610 229,369 216,784 210,931 64 Other liabilities and subordinated note and debentures . 86,486' 86,56C 85,618' 87,444 88,238 88,639 88,662 91,025 65 Total liabilities 1,030,936' 1,033,277' 1,046,074' 1,063,301 1,039,524 1,070,850 1,066,568 1,108,470 1,067,194 66 Residual (total assets minus total liabilities)5 78,014 77,692 77,379 78,118 78,229 78,285 78,509 78,833 80,052 MEMO 67 Total loans and leases (gross) and investments adjusted6.. 845,235' 857,02C 861,348' 865,016 857,965 873,981 876,922 893,374 68 Total loans and leases (gross) adjusted3-6 697,746' 706,472' 706,678' 709,097 705,511 714,480 717,680 726,959 69 Time deposits in amounts of $100,000 or more 157,06c 157,402' 157,757' 156,818 158,258 158,246 159,788 163,850 70 Loans sold outright to affiliates—total7 2,014 1,977 1,896 1,912 1,837 1,884 1,890 1,830 71 Commercial and industrial 1,264 1,213 1,137 1,184 1,099 1,152 1,147 1,115 72 Other 750 764 760 729 738 731 742 714 73 Nontransaction savings deposits (including MMDAs) 190,803 191,471 191,322' 191,659 191,834 191,580 192,139 195,514 1. These amounts represent accumulated adjustments originally made to offset repurchase ; for information on these liabilities at banks with assets of $1 billion or the cumulative effects of bank mergers during the calendar year. The adjustment more on Dec. 31, 1977, see table 1.13. data for 1985 should be added to reported data for 1985 to establish comparability 5. This is not a measure of equity capital for use in capital adequacy analysis or with data reported for 1986. for other analytic uses. 2. Includes securities purchased under agreements to resell. 6. Exclusive of loans and federal funds transactions with domestic commercial 3. Levels of major loan items were affected by the Sept. 26, 1984, transaction banks. between Continental Illinois National Bank and the Federal Deposit Insurance 7. 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 4. Includes federal funds purchased and securities sold under agreements to not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures except as noted 1985 1986 Account Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Dec. 31' Jan. 8 1 Cash and balances due from depository institutions 24,998 22,401 22,043 28,884 25,849 28,260 24,833 32,251 22,129 2 Total loans, leases and securities, net2 183,784 193,723 191,685 200,363 193,040 199,610 196,522 197,591 199,144 Securities 3 U.S. Treasury and government agency3 4 Trading account3 5 Investment account, by maturity 10,993 11,319 11,644 13,502 13,728 14,047 12,379 11,441 11,092 6 One year or less 2,276 2,556 2,557 2,504 2,505 2,334 1,894 1,409 1,438 7 Over one through five years 6,870 6,874 7,228 7,520 7,546 7,499 6,576 5,878 5,953 8 Over five years 1,848 1,889 1,858 3,478 3,677 4,214 3,910 4,154 3,701 9 Other securities3 10 Trading account3 11 Investment account 11,602 11,839 12,245 12,449 12,826 13,264 13,706 15,468 15,725 12 States and political subdivisions, by maturity 10,118 10,338 10,736 10,919 11,304 11,544 11,972 13,716 13,954 13 One year or less 1,749 1,778 1,778 1,788 1,785 1,769 1,512 1,922 1,758 14 Over one year 8,369 8,560 8,957 9,131 9,519 9,775 10,460 11,794 12,196 15 Other bonds, corporate stocks and securities 1,484 1,500 1,510 1,530 1,522 1,720 1,734 1,752 1,770 16 Other trading account assets3 Loans and leases 17 Federal funds sold4 23,617 28,387 25,772 32,591 26,372 27,362 25,360 24,724 28,344 18 To commercial banks 11,222 13,699 13,074 17,786 12,355 15,173 13,167 13,781 12,555 19 To nonbank brokers and dealers in securities 7,242 7,148 7,260 10,022 8,418 7,176 7,254 6,656 8,980 20 To others 5,153 7,540 5,438 4,783 5,600 5,014 4,939 4,286 6,808 21 Other loans and leases, gross 143,028 147,623 147,466 147,286 145,634 150,436 150,600 151,336 149,401 22 Other loans, gross 140,242 144,831 144,668 144,477 142,805 147,602 147,758 148,514 146,515 23 Commercial and industrial 59,700 59,405 59,236 60,454 59,302 58,927 58,545 59,218 59,649 24 Bankers acceptances and commercial paper 644 620 630 751 597 531 565 529 415 25 All other 59,056 58,786 58,606 59,703 58,705 58,397 57,980 58,688 59,233 26 U.S. addressees 58,361 58,085 57,880 59,001 57,982 57,735 57,292 57,993 58,580 27 Non-U.S. addressees 695 701 726 702 723 662 688 696 653 28 Real estate loans 28,699 28,699 28,833 28,939 29,019 29,048 29,377 29,363 29,490 29 To individuals for personal expenditures 17,934 18,041 18,081 18,091 18,177 18,288 18,377 18,553 17,938 30 To depository and financial institutions 12,404 12,410 12,741 13,791 13,793 13,788 13,413 15,117 12,751 31 Commercial banks in the United States 2,753 2,754 3,106 3,774 3,391 3,694 3,469 4,555 3,103 32 Banks in foreign countries 2,246 2,132 2,088 2,421 2,844 2,290 2,453 2,759 2,312 33 Nonbank depository and other financial institutions 7,404 7,523 7,547 7,596 7,558 7,803 7,490 7,803 7,335 34 For purchasing and carrying securities 8,260 12,868 11,687 9,349 8,701 13,081 12,669 9,716 11,938 35 To finance agricultural production 324 325 328 301 276 283 294 317 296 36 To states and political subdivisions 8,236 8,210 8,390 8,313 8,275 8,329 8,464 9,731 9,482 37 To foreign governments and official institutions.... 1,064 930 882 901 892 922 975 894 916 38 All other 3,621 3,942 4,490 4,338 4,369 4,936 5,644 5,605 4,054 39 Lease financing receivables 2,786 2,792 2,798 2,810 2,828 2,835 2,842 2,822 2,886 40 LESS: Unearned income 1,425 1,427 1,429 1,417 1,424 1,433 1,441 1,435 1,453 41 Loan and lease reserve 4,032 4,018 4,013 4,049 4,097 4,068 4,083 3,944 3,965 42 Other loans and leases, net 137,571 142,178 142,024 141,820 140,113 144,936 145,076 145,958 143,983 43 All other assets5 71,371 72,443 73,707 72,030 67,968 72,878 70,786 75,232 69,141 44 Total assets 280,154 288,567 287,436 301,277 286,858 300,748 292,141 305,074 290,414 Deposits 45 Demand deposits 50,064 50,326 51,642 55,157 52,668 57,606 56,302 71,163 52,941 46 Individuals, partnerships, and corporations 32,868 31,838 34,342 37,018 33,302 35,365 35,543 46,258 37,034 47 States and political subdivisions 831 1,051 761 745 703 837 681 1,152 683 48 U.S. government 285 712 550 727 502 665 401 181 424 49 Depository institutions in the United States 6,355 6,032 6,811 6,703 6,864 8,078 8,199 9,256 5,486 50 Banks in foreign countries 4,2% 4,382 4,243 3,900 5,004 4,177 5,461 6,004 4,338 51 Foreign governments and official institutions 881 669 1,042 582 516 820 638 873 775 52 Certified and officers' checks 4,547 5,641 3,892 5,482 5,749 7,664 5,379 7,440 4,201 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers).. 4,312 4,274 4,380 4,429 4,430 4,516 4,517 4,616 4,790 54 Nontransaction balances 86,797 87,996 87,995 87,753 88,458 88,635 89,380 92,914 92,287 55 Individuals, partnerships and corporations 78,408 79,727 79,884 79,672 80,383 80,382 81,009 83,956 83,392 56 States and political subdivisions 4,961 4,972 5,064 4,983 4,944 4,936 5,112 5,619 5,735 57 U.S. government 37 43 41 44 38 42 39 39 37 58 Depository institutions in the United States 2,109 1,981 1,985 1,821 11,,888800 2,138 2,082 2,151 2,106 59 Foreign governments, official institutions and banks . 1,282 1,272 1,020 1,233 11,,221122 1,137 1,138 1,149 1,017 60 Liabilities for borrowed money 79,429 87,242 84,541 92,660 81,076 91,114 82,135 72,917 81,739 61 Borrowings from Federal Reserve Banks 3,143 1,490 2,020 62 Treasury tax-and-loan notes 980 120 2,314 167 2,971 3,733 3,984 1,834 63 All other liabilities for borrowed money6 78,449 83,979 82,227 91,002 81,076'' 88,142 78,402 66,914 79,905 64 Other liabilities and subordinated note and debentures . 34,704 33,931 34,271 36,262 35,246 34,149 34,827 38,176 33,197 65 Total liabilities 255,306 263,768 262,829 276,260 261,878 276,020 267,162 279,786 264,954 66 Residual (total assets minus total liabilities)7 24,848 24,798 24,607 25,017 24,979 24,728 24,979 25,287 25,460 MEMO 67 Total loans and leases (gross) and investments adjusted2'8. 175,267 182,714 180,948 184,270 182,815 186,243 185,410 184,634 188,904 68 Total loans and leases (gross) adjusted8 152,671 159,556 157,058 158,318 156,260 158,932 159,324 157,724 162,088 69 Time deposits in amounts of $100,000 or more 33,114 33,758 33,458 33,697 34,018 34,440 34,865 37,247 37,288 1. These data are as of Tuesday the last day of the year. 7. Not a measure of equity capital for use in capital adequacy analysis or for 2. Excludes trading account securities. other analytic uses. 3. Not available due to confidentiality. 8. Exclusive of loans and federal funds transactions with domestic commercial 4. Includes securities purchased under agreements to resell. banks. 5. Includes trading account securities. NOTE. These data also appear in the Board's H.4.2 (504) release. For address, 6. Includes federal funds purchased and securities sold under agreements to see inside front cover. repurchase. 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 • Millions of dollars, Wednesday figures 1985 1986 AAccccoouunntt11 Nov. 13' Nov. 2(K Nov. 27r Dec. 4 Dec. 11 Dec. 18 Dec. 25 Jan 1 Jan. 8 1 Cash and due from depository institutions. 7,866 8,149 8,034 8,888 8,646 8,890 8,267 9,994 9,297 2 Total loans and securities 58,848 62,390 61,648 59,638 59,752 64,372 64,649 70,759 63,885 3 U.S. Treasury and govt, agency securities 4,014 3,505 3,673 4,027 3,874 3,716 3,728 3,700 3,663 4 Other securities 3,324 3,409 3,464 3,490 3,518 3,542 3,096 3,866 3,784 5 Federal funds sold2 3,849 5,991 4,956 3,862 3,149 5,699 4,789 4,938 4,517 6 To commercial banks in the United States 2,970 5,017 3,965 2,995 2,434 4,730 4,167 4,368 3,906 7 To others 879 974 991 867 715 969 622 569 611 8 Other loans, gross 47,661 49,486 49,556 48,259 49,211 51,416 53,037 58,254 51,920 9 Commercial and industrial 29,233 29,724 30,027 29,374 29,709 30,150 30,429 33,725 30,560 10 Bankers acceptances and commercial paper 1,865 1,983 1,962 2,087 2,233 2,123 2,203 33,,113322 22,,441144 11 All other 27,368 27,742 28,065 27,288 27,476 28,028 28,226 30,592 28,146 12 U.S. addressees 25,856 26,239 26,503 25,736 25,881 26,415 26,633 27,873 26,363 13 Non-U.S. addressees 1,512 1,502 1,562 1,552 1,595 1,613 1,593 2,719 1,783 14 To financial institutions 12,975 13,415 13,177 12,845 13,405 14,444 15,110 15,377 14,302 15 Commercial banks in the United States. 10,205 10,342 10,371 9,506 10,483 11,133 11,440 11,640 10,807 16 Banks in foreign countries 1,084 1,187 1,076 1,458 1,119 1,059 1,163 1,112 1,104 17 Nonbank financial institutions 1,686 1,885 1,730 1,881 1,803 2,252 2,506 2,625 2,392 18 To foreign govts, and official institutions.. 738 754 741 751 746 750 790 801 692 19 For purchasing and carrying securities .. 1,418 2,327 2,301 1,868 1,993 2,673 3,360 4,854 2,883 20 All other 3,298 3,266 3,310 3,420 3,357 3,398 3,348 3,498 3,482 21 Other assets (claims on nonrelated parties).. 20,692 21,353 20,831 20,867 21,906 22,101 22,118 20,355 20,636 22 Net due from related institutions 13,828 12,406 15,051 15,698 12,893 14,858 15,064 12,521 11,689 23 Total assets 101,234 104,298 105,564 105,091 103,199 110,312 110,098 113,629 105,507 24 Deposits or credit balances due to other than directly related institutions 31,911 31,226 32,116 32,504 32,426 32,621 32,738 3333,,447777 3322,,444477 25 Transaction accounts and credit balances3 3,345 2,997 3,463 4,008 3,924 4,045 4,458 3,540 2,461 26 Individuals, partnerships, and corporations 1,214 1,192 1,307 1,825 1,425 1,466 1,760 11,,881188 11,,442200 27 Other 2,131 1,805 2,156 2,183 2,499 2,578 2,698 1,722 1,041 28 Nontransaction accounts4 28,566 28,229 28,652 28,496 28,501 28,576 28,280 29,937 29,986 29 Individuals, partnerships, and corporations 22,668 22,442 22,958 22,723 22,558 22,491 22,016 2222,,226611 2233,,118844 30 Other 5,898 5,787 5,694 5,774 5,944 6,085 6,263 7,676 6,801 31 Borrowings from other than directly related institutions 39,302 39,254 42,305 42,547 38,729 43,581 42,813 44,746 38,460 32 Federal funds purchased5 18,145 18,360 17,617 19,972 16,649 21,204 19,817 19,945 15,845 33 From commercial banks in the United States 13,644 15,017 14,113 16,515 12,681 17,326 15,823 15,690 11,387 34 From others 4,502 3,342 3,503 3,457 3,968 3,877 3,994 4,255 4,457 35 Other liabilities for borrowed money 21,156 20,894 24,688 22,575 22,079 22,377 22,996 24,801 22,615 36 To commercial banks in the United States 19,298 19,113 22,481 20,552 19,843 20,125 20,650 22,127 20,653 37 To others 1,859 1,781 2,207 2,023 2,236 2,252 2,347 2,674 1,961 38 Other liabilities to nonrelated parties 23,559 23,604 23,578 23,652 23,868 23,787 23,921 23,843 22,944 39 Net due to related institutions 6,462 10,214 7,566 6,388 8,176 10,322 10,627 11,563 11,657 40 Total liabilities 101,234 104,298 105,564 105,091 103,199 110,312 110,098 113,629 105,507 MEMO 41 Total loans (gross) and securities adjusted6 45,674 47,031 47,313 47,138 46,835 48,510 49,042 54,750 4499,,117722 42 Total loans (gross) adjusted6 38,335 40,117 40,176 39,620 39,443 41,252 42,218 47,183 41,724 • Levels of many asset and liability items were revised beginning Oct. 31, in transaction accounts. Before Jan. 1, 1986, they were included in savings 1984. For details, see the H.4.2 (504) statistical release dated Nov. 23, 1984. (nontransaction) accounts. 1. Effective Jan. 1, 1986, The reporting panel includes 65 U.S. branches and 2. Includes securities purchased under agreements to resell. agencies of foreign banks instead of the 50 banks previously reporting. Data 3. Includes credit balances, demand deposits, and other checkable deposits. shown for weeks before Jan. 1, 1986 are estimated to represent the new 65-bank 4. Includes savings deposits, money market deposit accounts, and time panel. Minor definitional changes were made in a few items effective with Jan. 1 deposits. data due to a change in treatment of credit balances and other checkable deposits. 5. Includes securities sold under agreements to repurchase. Credit balances formerly were reported as a separate item and are now included in 6. Exclusive of loans to and federal funds sold to commercial banks in the the transaction account breakdowns. Other checkable deposits are now included United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 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.. June Sept. Dec. Mar.3 June Sept. 1 All holders—Individuals, partnerships, and corporations 315.5 288.9 291.8 293.5 286.3 288.8 302.7 286.6' 298.6 299^ 2 Financial business 29.8 28.0 35.4 32.8 30.8 30.4 31.7 28.1 28.9 28.9' 3 Nonfinancial business 162.8 154.8 150.5 161.1 156.7 158.9 166.3 158.3' 164.7 168.1' 4 Consumer 102.4 86.6 85.9 78.5 78.7 79.9 81.5 77.9 81.8 80.7' 5 Foreign 3.3 2.9 3.0 3.3 3.5 3.3 3.6 3.5 3.7 3.5 6 Other 17.2 16.7 17.0 17.8 16.7 16.3 19.7 18.8 19.5 18.5 Weekly reporting banks 1984 1985 11998800 11998811 11998822 11998833 DDeecc.. DDeecc.. DDeecc.. DDeecc..22 June Sept. Dec. Mar.3 June Sept. 7 All holders—Individuals, partnerships, and corporations 147.4 137.5 144.2 146.2 145.3 145.3 157.1 147.8 151.4 153.7 8 Financial business 21.8 21.0 26.7 24.2 23.6 23.7 25.3 22.6 22.9 23.3 9 Nonfinancial business 78.3 75.2 74.3 79.8 79.7 79.2 87.1 82.8 84.0 85.9 10 Consumer 35.6 30.4 31.9 29.7 29.9 29.8 30.5 29.1 29.9 30.6 11 Foreign 3.1 2.8 2.9 3.1 3.2 3.2 3.4 3.3 3.5 3.3 12 Other 8.6 8.0 8.4 9.3 8.9 9.3 10.9 10.0 11.0 10.6 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 1980 1981 1982 1983 1984 IInnssttrruummeenntt Dec. Dec. Dec.1 Dec. Dec.2 June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted unless noted otherwise) 1 AU issuers 124,374 165,829 166,436 188,312 239,117 254,627 262,769 273,327 276,559 280,930 288,648 Financial companies3 Dealer-placed paper4 2 Total 19,599 30,333 34,605 44,622 56,917 61,602 67,419 67,816 69,904 68,378 71,191 3 Bank-related (not seasonally adjusted) 3,561 6,045 2,516 2,441 2,035 2,051 2,083 2,136 2,333 2,077 1,969 Directly placed paper5 4 Total 67,854 81,660 84,393 96,918 110,474 118,432 118,722 128,216 131,801 131,064 131,578 5 Bank-related (not seasonally adjusted) 22,382 26,914 32,034 35,566 42,105 43,454 41,228 42,926 43,224 42,570 41,490 6 Nonfinancial companies6 36,921 53,836 47,437 46,772 71,726 74,593 76,628 77,295 74,854 81,488 85,879 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 54,744 69,226 79,543 78,309 75,470 70,636' 71,082' 69,505' 70,845' 69,272' 67,890 Holder 8 Accepting banks 10,564 10,857 10,910 9,355 10,255 8,911' 8,755' 8,563' 10,014' 9,719' 11,027 9 Own bills 8,963 9,743 9,471 8,125 9,065 7.31C 7,468' 7,365' 8,501' 8,041' 8,903 10 Bills bought 1,601 1,115 1,439 1,230 1,191 1,601 1,287 1,198 1,513 1,679' 2,123 Federal Reserve Banks 11 Own account 776 195 1,480 418 0 0 0 0 0 0 0 12 Foreign correspondents 1,791 1,442 949 729 671 511 652 789 793 850 874 13 Others 41,614 56,731 66,204 68,225 67,595 64,927' 64,90c 63,338' 63,857' 62,91C 61,109 Basis 14 Imports into United States 11,776 14,765 17,683 15,649 16,975 16,871' 17,058' 17.35C 17,146' 16,503' 15,845 15 Exports from United States 12,712 15,400 16,328 16,880 15,859 13,353' 12,978' 12,861' 13,242' 13,116' 13,030 16 All other 30,257 39,060 45,531 45,781 42,635 38,29c 38,03C 38,281' 38,776' 38,362' 37,516 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 Average Month rate 11.00 1984—Oct. 17 12.50 1983—Jan. 11.16 1984—Aug. 10.50 29 12.00 Feb. 10.98 Sept. 11.00 Nov. 9 11.75 Mar. 10.50 Oct. 28 11.25 Apr. 10.50 Nov. 11.50 Dec. 20 10.75 May 10.50 Dec. 12.00 June 10.50 1985—Jan. , 12.50 1985—Jan. 15 10.50 July 10.50 Feb., 13.00 May 20 10.00 Aug. 10.89 Mar. 12.75 June 18 9.50 Sept 11.00 Apr., Oct. 11.00 May. Nov. 11.00 June. Dec. 11.00 July. 1984—Jan.. 11.00 Aug. Feb. 11.00 Sept. Mar. 11.21 Oct.. Apr. 11.93 Nov. June 12.60 Dec. July. 13.00 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

A48 Domestic Nonfinancial Statistics • March 1986 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 11998833 11998844 11998855 Sept. Oct. Nov. Dec. Nov. 29 Dec. 6 Dec. 13 Dec. 20 Dec. 27 MONEY MARKET RATES 1 Federal funds1'2 9.09 10.22 8.10 7.92 7.99 8.05 8.27 7.71 8.49 8.03 8.05 8.02 2 Discount window borrowing['2'3 8.50 8.80 7.69 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 Commercial paper4 5 3 1-month 8.87 10.05 7.94 7.83 7.81 7.84 7.87 7.82 7.94 7.85 7.79 7.86 4 3-month 8.88 10.10 7.95 7.83 7.80 7.77 7.75 7.77 7.85 7.76 7.67 7.73 5 6-month 8.89 10.16 8.01 7.86 7.79 7.69 7.62 7.69 7.74 7.65 7.52 7.58 Finance paper, directly placed4'5 6 1-month 8.80 9.97 7.91 7.84 7.79 7.81 7.81 7.74 7.90 7.84 7.75 7.75 7 3-month 8.70 9.73 7.77 7.64 7.60 7.58 7.57 7.58 7.68 7.58 7.53 7.49 8 6-month 8.69 9.65 7.75 7.60 7.59 7.57 7.51 7.56 7.57 7.53 7.48 7.45 Bankers acceptances5-6 9 3-month 8.90 10.14 7.92 7.81 7.76 7.70 7.65 7.71 7.75 7.64 7.54 7.67 10 6-month 8.91 10.19 7.96 7.84 7.75 7.59 7.52 7.57 7.67 7.53 7.40 7.48 Certificates of deposit, secondary market7 11 1-month 8.96 10.17 7.97 7.88 7.85 7.82 7.87 7.86 7.93 7.83 7.75 7.99 12 3-month 9.07 10.37 8.05 7.93 7.88 7.81 7.80 7.86 7.94 7.81 7.67 7.80 13 6-month 9.27 10.68 8.25 8.09 7.97 7.82 7.80 7.88 7.95 7.81 7.67 7.79 14 Eurodollar deposits, 3-month8 9.56 10.73 8.28 8.14 8.08 8.02 7.99 8.05 8.14 8.01 7.86 7.98 U.S. Treasury bills5 Secondary market9 15 3-month 8.61 9.52 7.48 7.10 7.16 7.24 7.10 7.18 7.24 7.10 7.06 7.02 16 6-month 8.73 9.76 7.65 7.27 7.33 7.30 7.14 7.28 7.31 7.12 7.06 7.06 17 1-year 8.80 9.92 7.81 7.50 7.45 7.33 7.16 7.33 7.35 7.13 7.07 7.08 Auction average10 18 3-month 8.64 9.56 7.48 7.08 7.17 7.20 7.07 7.15 7.19 7.05 7.00 7.02 19 6-month 8.76 9.79 7.66 7.26 7.32 7.26 7.27 7.26 7.26 7.02 7.01 7.05 20 1-year 8.85 9.91 7.80 7.36 7.42 7.33 7.06 n.a. n.a. n.a. n.a. 7.06 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 9.57 10.89 8.43 8.07 8.01 7.88 7.67 7.87 7.90 7.65 7.57 7.59 22 2-year 10.21 11.65 9.27 8.98 8.86 8.58 8.15 8.51 8.50 8.12 8.00 8.00 73 8.65 8 20 24 3-year 10.45 11.89 9.64 9.37 9.25 8.88 8.40 8.75 8.75 8.41 8.23 8.24 25 5-year 10.80 12.24 10.13 9.81 9.69 9.28 8.73 9.17 9.12 8.76 8.55 8.54 26 7-year 11.02 12.40 10.51 10.24 10.11 9.62 9.11 9.52 9.52 9.15 8.94 8.91 27 10-year 11.10 12.44 10.62 10.37 10.24 9.78 9.26 9.65 9.65 9.31 9.09 9.05 28 20-year 11.34 12.48 10.97 10.80 10.67 10.24 9.75 10.14 10.13 9.81 9.58 9.53 29 30-year 11.18 12.39 10.79 10.61 10.50 10.06 9.54 9.93 9.90 9.61 9.38 9.31 Composite14 30 Over 10 years (long-term) 10.84 11.99 10.75 10.67 10.56 10.08 9.60 9.96 9.96 9.66 9.44 9.38 State and local notes and bonds Moody's series15 31 Aaa 8.80 9.61 8.60 8.70 8.58 8.13 7.98 8.00 8.00 8.00 7.95 7.95 32 Baa 10.17 10.38 9.58 9.63 9.54 9.20 9.05 9.10 9.10 9.10 9.00 9.00 33 Bond Buyer series16 9.51 10.10 9.10 9.27 9.08 8.54 8.43 8.51 8.54 8.42 8.38 8.36 Corporate bonds Seasoned issues17 34 All industries 12.78 13.49 12.05 11.75 11.69 11.29 10.89 11.16 11.16 10.99 10.77 10.70 35 Aaa 12.04 12.71 11.37 11.07 11.02 10.55 10.16 10.43 10.43 10.26 10.05 9.97 36 Aa 12.42 13.31 11.82 11.46 11.45 11.07 10.63 10.95 10.93 10.73 10.50 10.43 37 A 13.10 13.74 12.28 11.99 11.94 11.54 11.19 11.42 11.40 11.25 11.09 11.05 38 Baa 13.55 14.19 12.72 12.48 12.36 11.99 11.58 11.85 11.87 11.70 11.43 11.36 39 A-rated, recently-offered utility bonds18 12.73 13.81 12.06 11.87 11.82 11.38 10.91 11.25 11.27 10.95 10.68 10.62 MEMO: Dividend/price ratio19 40 Preferred stocks 11.02 11.59 10.49 10.26 10.35 10.12 10.05 9.84 10.04 9.98 10.06 10.04 41 Common stocks 4.40 4.64 4.25 4.32 4.28 4.06 3.88 3.98 3.95 3.91 3.84 3.88 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-'/2-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 A25 1.36 STOCK MARKET Selected Statistics 1985 IInnddiiccaattoorr 11998833 11998844 11998855 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 92.63 92.46 108.09 104.66 107.00 109.52 111.64 109.09 106.62 107.57 113.93 119.33 2 Industrial 107.45 108.01 123.79 119.93 121.88 124.11 126.94 124.92 122.35 123.65 130.53 136.77 3 Transportation 89.36 85.63 104.11 96.47 99.66 105.79 111.67 109.92 104.96 103.72 108.61 113.52 4 Utility 47.00 46.44 56.75 55.51 57.32 59.61 59.68 56.99 55.93 55.84 59.07 61.69 5 Finance 95.34 89.28 114.21 109.39 115.31 118.47^ 119.85 114.68 110.21 112.36 122.83 128.86 6 Standard & Poor's Corporation (1941-43 = 10)1 ... 160.41 160.50 186.84 180.62 184.90 188.89 192.54 188.31 184.06 186.18 197.45 207.26 7 American Stock Exchange2 (Aug. 31, 1973 = 50) 216.48 207.96 229.10 229.46 228.75 227.48 235.21 232.65 226.27 225.00 236.53 243.28 Volume of trading (thousands of shares) 8 New York Stock Exchange 85,418 91,084 109,191 94,387 106,827 105,849 111,952 87,468 97,910 110,569 122,263 133,446 9 American Stock Exchange 8,215 6,107 8,355 7,801 7,171 7,128 7,284 7,275 7,057 7,648 9,183 11,890 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 23,000 22,470 28,390 23,900 24,300 25,260 25,220 25,780 25,330 26,350 26,400 28,390 Free credit balances at brokers4 11 Margin-account 6,620 7,015 7,120 6,910 6,865 7,300 7,000 6,455 6,225 6,125 6,490 7,120 12 Cash-account 8,430 10,215 12,840 9,230 9,230 10,115 9,700 9,440 10,080 9,630 10,340 12,840 Margin-account debt at brokers (percentage distribution, end of period) 13 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)s 14 Under 40 41.0 46.0 34.0 39.0 36.0 34.0 34.0 35.0 40.0 37.0 35.0 34.0 15 40-49 22.0 18.0 20.0 19.0 19.0 20.0 20.0 21.0 22.0 22.0 20.0 20.0 16 50-59 16.0 16.0 19.0 18.0 19.0 19.0 19.0 18.0 16.0 17.0 19.0 19.0 17 60-69 9.0 9.0 11.0 10.0 11.0 11.0 11.0 11.0 9.0 10.0 11.0 11.0 18 70-79 6.0 5.0 8.0 7.0 7.0 8.0 8.0 8.0 6.0 7.0 7.0 8.0 19 80 or more 6.0 6.0 8.0 7.0 8.0 8.0 8.0 7.0 7.0 7.0 8.0 8.0 Special miscellaneous-account balances at brokers (end of period) 20 Total balances (millions of dollars)6 58,329 75,840 99,310 82,990 87,120 86,910 89,240 90,930 91,400 92,250 95,240 99,310 Distribution by equity status (percent) 21 Net credit status 63.0 59.0 58.0 60.0 60.0 59.0 59.0 59.0 59.0 58.0 57.0 58.0 Debt status, equity of 22 60 percent or more 28.0 29.0 31.0 30.0 30.0 31.0 32.0 30.0 31.0 31.0 32.0 31.0 23 Less than 60 percent 9.0 11.0 11.0 10.0 10.0 10.0 9.0 11.0 10.0 11.0 11.0 11.0 Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 24 Margin stocks 70 80 65 55 65 50 25 Convertible bonds 50 60 50 50 50 50 26 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

A48 Domestic Nonfinancial Statistics • March 1986 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1985 AAccccoouunntt 11998822 11998833 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. FSLIC insured institutions 1 Assets 692,663 819,168 974,881 982,182 992,289 995,430 1,003,225 1,012,312 1,022,388' 1,034,964' 1,041,917' 1,048,870' 1,061,515 7 Mortgages 477,009 521,308 602,180 603,308 608,267 613,334 617,574 623,275 627.26C 632,933' 638,156' 644,368' 647,984 Mortgage-backed securities 62,793 90,902 106,836 107,779 108,755 108,174 106,433 102,892 105,870' 108,562' 113,053' 111,253' 110,393 4 Cash and investment securities1 . 8822,,330000 109,923 129,481 131,625 132,438 125,528 129,918 132,109 132,994' 134,968' 130,696' 130,757' 139,552 Other 91,211 93,100 94,625 96,903 98,034 100,595 101,341' 101,701' 101,679' 102,701' 103,178 6 Liabilities and net worth 692,663 819,168 974,881 982,182 992,289 995,430 1,003,225 1,012,312 1,022,388' 1,034,964* 1,041,917'1 1,048,870' 1,061,515 7 Savings capital 554,584 671,059 791,475 792,566 801,293 801,293 809,083 817,551 822,106' 826,840' 831,262' 833,182' 837,456 8 Borrowed money 97,459 98,511 125,605 129,321 132,665 132,230 129,082 130,269 133,995' 139,482' 144,835' 146,978' 152,842 9 FHLBB 63,818 57,253 70,509 71,470 71,674 72,785 74,159 75,897 77,756' 80,129' 81,486' 82,569' 82,716 10 Other 33,641 41,258 55,096 57,851 60,991 59,445 54,923 54,372 56,239' 59,353' 63,349' 64,409' 70,126 11 Other 15,233 16,619 19,961 21,816 19,290 22,468 24,215 22,055 23,246' 25,189' 21,852' 24,267' 26,118 12 Net worth2 25,386 32,980 37,840 38,488 39,041 39,476 40,845 42,436 43,042' 43,454' 43,969* 44,443' 45,099 N MEMO: Mortgage loan commitments outstanding3 .. 27,806 56,785 64,154 65,323 67,615 68,671 69,683 69,585 68,712 65,793 65,865 64,863 65,257 Mutual savings banks4 14 Assets 174,197 193,535 204,859 206,175 210,568 210,469 212,509 212,163 213,824 215,298 215,560 215,893 216,793 Loans 15 Mortgage 94,091 97,356 103,393 103,654 104,340 105,102 105,869 105,891 106,441 107,322 108,842 109,171 109,494 16 Other 1166,,995577 19,129 25,747 26,456 27,798 28,000 28,530 29,211 30,339 30,195 29,672 29,%7 31,217 Securities 17 U.S. government 9,743 15,360 14,628 14,917 15,098 14,504 14,895 14,074 13,960 13,868 13,686 13,734 13,434 18 Mortgage-backed securities 14,055 18,205 19,459 19,167 19,694 19,750 19,527 19,160 19,779 20,101 20,368 20,012 19,828 19 State and local government 2,470 2,177 2,067 2,069 2,092 2,097 2,094 2,093 2,086 2,105 2,107 2,163 2,148 70 Corporate and other7 22,106 25,375 23,892 23,8% 24,194 24,139 24,344 24,047 23,738 23,735 23,534 23,039 22,816 71 Cash 6,919 6,263 4,140 4,423 4,864 4,679 5,004 4,935 4,544 4,821 4,916 4,893 4,771 22 Other assets 7,855 9,670 11,533 11,593 12,488 12,288 12,246 12,770 12,937 13,151 12,345 12,914 13,085 23 Liabilities 174,197 193,535 204,859 206,175 210,568 210,469 212,509 212,163 213,824 215,298 215,560 215,893 216,793 74 Deposits 155,196 172,665 181,062 181,849 185,197 184,478 185,802 186,091 186,824 187,207 187,722 187,239 187,552 75 Regular8 152,777 170,135 18,834' 18,856' 18,938' 19,168' 19,286* 19,362' 19,488' 19,541' 19,601' 19,718' 19,662 76 Ordinary savings 46,862 38,554 33,413 33,413 33,715 33,211 33,457 33,526 33,495 33,398 33,252 33,303 33,638 77 Time 96,369 95,129 104,098 103,536 105,204 104,527 104,843 104,756 104,737 104,448 104,668 104,024 104,116 78 Other 2,419 2,530 3,108 3,058 3,455 3,689 3,674 3,873 3,943 3,985 4,162 3,943 3,836 79 Other liabilities 8,336 10,154 12,931 13,387 14,393 14,959 15,546 14,348 15,137 15,971 15,546 15,996 16,309 30 General reserve accounts 9,235 10,368 10,619 10,670 10,720 10,803 10,913 11,238 11,453 11,704 11,882 12,299 12,567 Life insurance companies8 31 Assets 588,163 654,948 731,113 735,332 742,154 748,865 757,523 765,891 772,452 778,293 783,828 791,483 Securities 37 Government 36,499 50,752 63,979 65,867 65,603 66,402 67,880 68,636 68,983 69,975 71,049 72,334 33 United States6 16,529 28,636 41,982 43,916 43,502 44,200 45,593 46,260 46,514 47,343 48,181 49,300 34 State and local 8,664 9,986 8,913 9,000 8,902 8,923 8,998 9,044 8,980 9,201 9,293 9,475 35 Foreign7 11,306 12,130 13,084 12,951 13,199 13,279 13,289 13,332 13,489 13,431 13,575 13,559 36 Business 287,126 322,854 368,306 371,009 374,757 379,247 384,342 388,448 393,386 397,202 355,505 403,832 n.a. 37 Bonds 231,406 257,986 302,260 303,452 307,078 311,123 314,021 317,029 321,752 325,647 285,164 331,675 38 Stocks 55,720 64,868 66,046 67,557 67,679 68,124 70,321 71,419 71,634 71,555 70,341 72,157 39 Mortgages 141,989 150,999 156,850 157,253 158,162 159,393 160,470 161,485 162,690 163,027 163,929 165,687 40 Real estate 20,264 22,234 25,983 26,186 26,527 26,828 27,215 27,831 28,240 28,450 28,476 28,637 41 Policy loans 52,961 54,063 54,414 54,489 54,438 54,439 54,384 54,320 54,300 54,238 54,225 54,142 42 Other assets 48,571 54,046 61,571 60,528 62,667 62,556 63,232 65,171 64,853 65,401 66,629 57,313 Credit unions9 43 Total assets/liabilities and capital. 69,585 81, %1 94,646 %,183 98,646 101,268 104,992 106,783 107,991 111,150 113,016 114,783 117,029 44 Federal 45,493 54,482 64,505 65,989 67,799 68,903 71,342 72,021 72,932 74,869 75,567 76,415 77,829 45 State 24,092 27,479 30,141 30,194 30,847 32,365 33,650 34,762 35,059 36,281 37,449 38,368 39,200 46 Loans outstanding 43,232 50,083 62,662 62,393 62,936 64,341 65,298 66,817 67,662 69,171 70,765 71,811 72,404 47 Federal 27,948 32,930 42,220 42,283 42,804 43,414 44,042 44,707 44,%3 46,036 46,702 47,065 47,538 48 State 15,284 17,153 20,442 20,110 20,132 20,927 21,256 22,110 22,699 23,135 24,063 24,746 24,866 49 Savings 62,990 74,739 86,047 86,048 88,560 91,275 95,278 %,702 98,026 99,834 101,318 103,677 105,384 50 Federal (shares) 41,352 49,889 58,820 59,914 61,758 62,867 66,680 66,243 67,070 68,087 68,592 70,063 71,117 51 State (shares and deposits).... 21,638 24,850 27,227 26,134 26,802 28,408 28,598 30,459 30,956 31,747 32,726 33,614 34,267 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All NOTES TO TABLE 1.37 1. Holdings of stock of the Federal Home Loan Banks are in "other assets," NOTE. FSLlC-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

A48 Domestic Nonfinancial Statistics • March 1986 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1984 1985 1985 1983 1984 1985 H2 HI H2 Oct. Nov. Dec. U.S. budget 1 Receipts1 600,562 666,457 733,9% 341,393 380,619 364,791 57,881 51,163 68,193 2 Outlays1 795,917 841,800 936,809 446,949 463,735 488,740 85,074 84,763 84,079 3 Surplus, or deficit (-) -195,355 -175,343 -202,813 -105,557 -83,115 -123,950 -27,193 -33,601 -15,886 4 Trust funds 23,056 30,565 53,540 31,473 22,592 30,278 3,371 -1,420 15,268 5 Federal funds2'3 -218,410 -205,908 -256,353 -137,032 -105,707 -154,229 -30,564 -32,181 -31,155 Off-budget entities (surplus, or deficit (-)) 6 Federal Financing Bank outlays -10,404 -7,277 -7,339 -1,913 -6,274 -529 86 -322 1,020 7 Other3'4 -1,953 -2,719 -1,779 -77 -1,567 -545 20 537 210 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -207,711 -185,339 -211,931 -109,474 -90,553 -125,022 -27,087 -33,386 -14,656 Source of financing 9 Borrowing from the public 212,425 170,817 197,269 118,209 87,054 136,567 11,390 45,863 33,261 10 Cash and monetary assets (decrease, or increase (-))4 -9,889 5,636 10,673 -16,683 -6,479 -10,428 13,964 -8,671 -21,020 11 Other5 5,176 8,885 3,989 7,948 9,978 1,117 1,733 -3,806 2,415 MEMO 12 Treasury operating balance (level, end of period) 37,057 22,345 17,060 17,649 24,013 30,935 1,823 10,051 30,935 13 Federal Reserve Banks 16,557 3,791 4,174 5,316 3,288 9,351 1,528 2,294 9,351 14 Tax and loan accounts 20,500 18,553 12,886 12,333 20,725 21,584 294 7,757 21,584 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 1986. 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 Fiscal Fiscal Source or type year year 1984 1985 1985 1984 1985 HI Oct. Dec. RECEIPTS 1 All sources 666,457 733,996 341,808 341,392 380,618 364,790 57,881 51,162 68, 193 2 Individual income taxes, net 295,960 330,918 144,691 157,229 166,852 169,987 29,730 23,399 193 3 Withheld 279,350 298,941 140,657 145,210 149,288 155,725 29,360 23,416 568 4 Presidential Election Campaign Fund . 35 35 29 5 29 6 0 0 0 5 Nonwithheld 81,346 97,685 61,463 19,403 76,155 22,295 1,547 1,269 ,448 6 Refunds 64,770 65,743 57,458 7,387 58,684 8,038 1,177 1,286 822 Corporation income taxes 7 Gross receipts 74,179 77,413 40,328 35,190 42,193 36,528 3,383 2,364 ,108 8 Refunds 17,286 16,082 10,045 6,847 8,370 7,751 2,202 973 821 9 Social insurance taxes and contributions, net 241,902 268,805 131,372 118,690 144,528 128,017 20,431 20,151 ,662 10 Payroll employment taxes and contributions1 238,288 114,102 105,624 125,969 18,708 17,478 ,012 11 Self-employment taxes and contributions2 8,709 10,468 7,667 1,086 9,482 985 144 0 0 12 Unemployment insurance 25,138 25,758 14,942 10,706 16,213 9,281 1,340 2,241 221 13 Other net receipts3 4,580 4,759 2,329 2,360 2,350 2,458 382 432 429 14 Excise taxes 37,361 35,865 18,304 18,961 17,259 18,470 2,958 3,211 ,017 15 Customs deposits 11,370 12,079 5,576 6,329 5,807 6,354 1,106 1,028 ,008 16 Estate and gift taxes 6,010 6,422 3,102 3,029 3,204 3,323 574 564 514 17 Miscellaneous receipts4 16,965 18,576 8,481 8,812 9,144 9,861 1,902 1,419 ,511 OUTLAYS 18 All types 841,800 936,809 420,700 446,943 463,842 488,739 85,074 84,763 84,, 079 19 National defense 227,411 251,468 114,639 118,286 124,186 134,675 21,942 21,971 ,915 2 2 2 2 2 0 1 2 3 4 E I G A N n n e g a t e e n t r u r i r e c g n r r u a y a a l l l t t i u r o s e r c n e s i a o e l n u a c r f c e f e , a s i s r p a s a n c d e , e n a v n i d r o t n e m ch e n n o t logy. 1 1 1 2 8 3 2 2 , , , , , 5 3 0 5 2 1 3 6 9 0 0 8 3 1 3 2 1 1 2 8 3 5 3 , , , , , 7 7 9 4 2 8 0 0 2 9 0 0 6 6 8 5 3 5 7 1 , , , , , 4 9 4 1 0 8 2 6 2 8 1 6 3 9 0 8 4 8 7 1 , , , , , 5 5 4 3 4 2 5 7 7 2 4 0 3 0 3 1 6 4 5 1 , , , , 6 2 8 7 6 7 3 9 0 8 5 0 2 5 0 1 4 8 3 7 5 , , , , , 7 3 3 5 4 2 6 0 5 1 7 7 5 3 2 2 3 1 1 , , , , 3 0 3 0 3 8 4 8 2 6 7 8 4 9 3 4 1 , , 3 8 6 4 0 0 3 9 8 8 7 1 7 8 0 , , , 8 3 4 3 1 5 8 0 2 0 1 3 4 7 6 25 Commerce and housing credit 5,213 1,817 2,572 2,663 -260 644 954 -194 -33 26 Transportation 24,587 25,874 10,616 13,673 11,440 15,360 2,602 2,667 ,387 27 Community and regional development .. 7,307 7,748 3,154 4,836 3,408 3,901 898 661 615 28 Education, training, employment, social services 28,352 13,445 13,737 14,149 2,581 2,776 ,058 29 Health 30,432 33,560 15,551 15,692 16,945 17,237 3,125 2,780 ,799 30 Social security and medicare 235,764 254,446 119,420 119,613 128,351 129,037 21,843 21,326 ,502 31 Income security 112,556 128,993 58,684' 61,558' 65,246 10,577,923 9,340 10,791 ,022 32 Veterans benefits and services 25,614 26,376 12,849 13,317 11,956 14,527 2,132 3,302 ,418 33 Administration of justice 5,660 6,188 2,807 2,992 3,016 3,212 538 441 587 34 General government 5,117 5,483 2,462 2,552 2,857 3,634 265 600 ,287 35 General-purpose fiscal assistance 6,770 6,140 2,943 3,458 2,659 3,391 1,667 74 45 36 Net interest® 111,058 129,148 54,748 61,293 65,143 67,448 11,440 12,312 ,287 37 Undistributed offsetting receipts7 -31,957 -32,893 -16,270' -17,061' -14,436 -17,953 -2,465 -2,146 ,881 1. Old-age, disability, and hospital insurance, and railroad retirement accounts. function. Before February 1984, these outlays were included in the income 2. Old-age, disability, and hospital insurance. security and health functions. 3. Federal employee retirement contributions and civil service retirement and 6. Net interest function includes interest received by trust funds. disability fund. 7. Consists of rents and royalties on the outer continental shelf and U.S. 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous government contributions for employee retirement. receipts. 5. In accordance with the Social Security Amendments Act of 1983, the SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Treasury now provides social security and medicare outlays as a separate Government" and the Budget of the U.S. Government, Fiscal Year 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics • March 1986 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1983 1984 1985 IItteemm Dec. 31 Mar. 31 June 30 Sep. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 1,415.3 1,468.3 1,517.2 1,576.7 1,667.4 1,715.1 1,779.0 1,827.5 n.a. 2 Public debt securities 1,410.7 1,463.7 1,512.7 1,572.3 1,663.0 1,710.7 1,774.6 1,823.1 1,945.9 3 Held by public 1,174.4 1,223.9 1,255.1 1,309.2 1,373.4 1,415.2 1,460.5 1,506.6 n.a. 4 Held by agencies 236.3 239.8 257.6 263.1 289.6 295.5 314.2 316.5 n.a. 5 Agency securities 4.6 4.6 4.5 4.5 4.5 4.4 4.4 4.4 n.a. 6 Held by public 3.5 3.5 3.4 3.4 3.4 3.3 3.3 3.3 n.a. 7 Held by agencies 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 n.a. 8 Debt subject to statutory limit 1,411.4 1,464.5 1,513.4 1,573.0 1,663.7 1,711.4 1,775.3 1,823.8 1,932.4 9 Public debt securities 1,410.1 1,463.1 1,512.1 1,571.7 1,662.4 1,710.1 1,774.0 1,822.5 1,931.1 10 Other debt1 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,490.0 1,490.0 1,520.0 1,573.0 1,823.8 1,823.8 1,823.8 1,823.8 2,078.7 1. Includes guaranteed debt of government agencies, specified participation NOTE. Data from Treasury Bulletin and Daily Treasury Statement (U.S. certificates, notes to international lending organizations, and District of Columbia Treasury Department), 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 Q4 Q1 Q2 Q3 1 Total gross public debt 930.2 1,028.7 1,197.1 1,410.7 1,663.0 1,710.7 1,774.6 1,823.1 By type 2 Interest-bearing debt 928.9 1,027.3 1,195.5 1,400.9 1,660.6 1,695.2 1,759.8 1,821.0 3 Marketable 623.2 720.3 881.5 1,050.9 1,247.4 1,271.7 1,310.7 1,360.2 4 Bills 216.1 245.0 311.8 343.8 374.4 379.5 381.9 384.2 5 Notes 321.6 375.3 465.0 573.4 705.1 713.8 740.9 776.4' 6 Bonds 85.4 99.9 104.6 133.7 167.9 178.4 187.9 199.5' 7 Nonmarketable1 305.7 307.0 314.0 350.0 413.2 423.6 449.1 460.8' 8 State and local government series 23.8 23.0 25.7 36.7 44.4 47.7 53.9 62.8' 9 Foreign issues2 24.0 19.0 14.7 10.4 9.1 9.1 8.3 (>.(? 10 Government 17.6 14.9 13.0 10.4 9.1 9.1 8.3 6.6 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' 74.1' 75.4' ll.Or 13 Government account series3 185.1 196.7 205.4 231.9 286.2 292.2 311.0 14 Non-interest-bearing debt 1.3 1.4 1.6 9.8 2.3 15.5 14.8 2.1' By holder4 15 U.S. government agencies and trust funds 192.5 203.3 209.4 236.3 289.6 295.5 314.2 316.5 16 Federal Reserve Banks 121.3 131.0 139.3 151.9 160.9 161.0 169.1 169.7 17 Private investors 616.4 694.5 848.4 1,022.6 1,212.5 1,254.1 1,292.0 1,338.2 18 Commercial banks 112.1 111.4 131.4 188.8 183.4 195.0 196.3 196.9 19 Money market funds 3.5 21.5 42.6 22.8 25.9 26.7 24.8 22.7 20 Insurance companies 24.0 29.0 39.1 56.7 82.3 84.0 n.a. n.a. 21 Other companies 19.3 17.9 24.5 39.7 50.1 50.9 52.3 56.5 22 State and local governments 87.9 104.3 127.8 155.1 n.a. n.a. n.a. n.a. Individuals 23 Savings bonds 72.5 68.1 68.3 71.5 74.5 75.4 76.7 78.2 24 Other securities 44.6 42.7 48.2 61.9 69.3 69.7' 72.(y 73.1 25 Foreign and international5 129.7 136.6 149.5 166.3 192.9 186.4' 200.7' 210.2 26 Other miscellaneous investors6 122.8 163.0 217.0 259.8 n.a. 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 Transactions1 Par value; averages of daily figures, in millions of dollars 1985 1985 week ending Wednesday IItteemm 11998822 11998833 11998844 Oct/ Nov/ Dec. Nov. 20- Nov. 27r Dec. 4 Dec. 11 Dec. 18 Dec. 25 Immediate delivery2 1 U.S. government securities 32,261 42,135 52,778 71,623 91,999 80,824 104,299 95,632 84,449 83,810 96,725 73,716 By maturity ? Bills 18,393 22,393 26,035 31,732 35,970 31,610 46,599 35,463 33,092 27,370 35,534 30,179 3 Other within 1 year 810 708 1,305 1,924 1,954 2,217 1,953 2,062 2,400 1,857 2,090 1,883 4 1-5 years 6,271 8,758 11,733 15,326 21,328 20,027 26,963 23,331 15,701 19,510 27,544 20,256 5-10 years 3,555 5,279 7,606 13,599 18,779 14,784 15,287 19,211 20,088 20,250 16,924 11,378 6 Over 10 years 3,232 4,997 6,099 9,041 13,968 12,185 13,498 15,564 13,168 14,824 14,633 10,020 By type of customer 7 U.S. government securities dealers 1,770 2,257 2,919 3,243 3,122 2,843 3,116 3,473 2,894 2,276 3,032 2,579 8 U.S. government securities brokers 15,794 21,045 25,580 33,811 43,655 38,010 49,558 44,141 38,877 41,197 47,569 33,193 9 All others3 14,697 18,833 24,278 34,569 45,222 39,971 51,626 48,018 42,678 40,337 46,125 37,944 10 Federal agency securities 4,140 5,576 7,846 13,352 15,286 15,310 20,452 15,156 10,369 16,023 22,241 15,044 11 Certificates of deposit 5,001 4,333 4,947 3,246 3,093 3,767 3,844 2,844 2,929 3,750 5,034 3,202 12 Bankers acceptances 2,502 2,642 3,243 2,789 2,630 2,845 3,110 2,402 2,822 3,143 3,235 2,304 13 Commercial paper 7,595 8,036 10,018 14,381 14,702 16,571 15,815 15,013 15,842 15,096 17,787 15,236 Futures transactions4 14 Treasury bills 5,055 6,655 6,947 4,608 4,990 4,883 6,545 4,745 5,041 6,526 5,422 4,188 15 Treasury coupons 1,487 2,501 4,503 6,038 7,439 6,763 7,830 7,422 7,791 8,527 7,641 4,959 16 Federal agency securities 261 265 262 564 467 229 169 146 87 557 221 180 Forward transactions5 17 U.S. government securities 835 1,493 1,364 721 1,733 1,313 2,602 2,481 1,229 620 2,046 1,604 18 Federal agency securities 978 1,646 2,843 4,774 5,663 6,161 7,114 4,322 3,826 8,014 7,816 5,296 1. Transactions are market purchases and sales of securities as reported to the securities, nondealer departments of commercial banks, foreign banking agencies, Federal Reserve Bank of New York by the U.S. government securities dealers on and the Federal Reserve System. its published list of primary dealers. 4. Futures contracts are standardized agreements arranged on an organized Averages for transactions are based on the number of trading days in the period. exchange in which parties commit to purchase or sell securities for delivery at a The figures exclude allotments of, and exchanges for, new U.S. government future date. securities, redemptions of called or matured securities, purchases or sales of 5. Forward transactions are agreements arranged in the over-the-counter securities under repurchase agreement, reverse repurchase (resale), or similar market in which securities are purchased (sold) for delivery after 5 business days contracts. from the date of the transaction for government securities (Treasury bills, notes, 2. Data for immediate transactions does not include forward transactions. and bonds) or after 30 days for mortgage-backed agency issues. 3. Includes, among others, all other dealers and brokers in commodities and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 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 Oct. Nov. Dec. Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Positions Net immediate2 1 U.S. government securities 14,769 14,224 5,538 3,91 1' 17,703' 10,635 20,860' 14,961 9,444 12,417 11,828 2 Bills 8,226 10,800 5,500 12,166' 17,498' 14,065 19,922 14,819 12,063 16,982 16,163 3 Other within 1 year 1,088 921 63 1,056 1,112 1,520 1,368 1,434 1,540 1,396 1,809 4 1-5 years 3,293 1,912 2,159 6,164 9,242 8,851 8,650 7,881 7,204 8,284 10,561 5 5-10 years -318 -78 -1,119 -9,192 -7,63C -11,002 -6,742' -6,937 -8,793 -11,504 -13,218 6 Over 10 years 2,026 528 -1,174 -6,483 -2,727' -3,057 -2,543' -2,452 -2,802 -2,985 -3,826 7 Federal agency securities 4,169 7,313 15,294 25,314' 26,485 33,138 27,889 28,270 30,050 34,432 36,058 8 Certificates of deposit 5,532 5,838 7,369 8,850 9,993' 10,692 10,499 10,786 10,421 11,167 10,685 9 Bankers acceptances 2,832 3,332 3,874 4,949' 5,518' 5,366 5,389 6,099 5,202 5,527 5,252 10 Commercial paper 3,317 3,159 3,788 5,699 7,449 7,957 7,044 8,147 7,438 8,404 8,063 Futures positions 11 Treasury bills -2,507 -4,125 -4,525 -13,573 -15,857 -12,469 -14,373 -12,874 -11,480 -12,335 -13,297 12 Treasury coupons -2,303 -1,033 1,794 5,789 2,618' 3,274 2,878' 2,884 2,937 3,645 3,620 13 Federal agency securities -224 171 233 -2,677' -1,333' -1,050 -622' -739 -699 -1,173 -1,353 Forward positions 14 U.S. government securities -788 -1,936 -1,643 -1,574 -862 -388 72 -843 -702 127 -959 15 Federal agency securities -1,432 -3,561 -9,205 -9,329' -11,102' -14,282 -11,155 -11,785 -13,698 -15,187 -14,510 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 26,754 29,099 44,078 77,247 76,817 79,435 69,065 86,679 82,127 82,837 68,950 17 Term agreements 48,247 52,493 68,357 88,981' 96,966 99,204 100,601 94,362 92,657 94,696 110077,,003366 Repurchase agreements5 18 Overnight and continuing 49,695 57,946 75,717 93,334' 116,992 120,458 93,413 132,340 128,322 130,714 99,691 19 Term agreements 43,410 44,410 57,047 74,425 88,119 90,233 108,969 80,043 76,087 79,572 112,707 1. Data for dealer positions and sources of financing are obtained from reports ties involved are not available for trading purposes. Immediate positions include submitted to the Federal Reserve Bank of New York by the U.S. government reverses to maturity, which are securities that were sold after having been securities dealers on its published list of primary dealers. obtained under reverse repurchase agreements that mature on the same day as the Data for positions are averages of daily figures, in terms of par value, based on securities. Data for immediate positions does not include forward positions. the number of trading days in the period. Positions are net amounts and are shown 3. Figures cover financing involving U.S. government and federal agency on a commitment basis. Data for financing are in terms of actual amounts securities, negotiable CDs, bankers acceptances, and commercial paper. borrowed or lent and are based on Wednesday figures. 4. Includes all reverse repurchase agreements, including those that have been 2. Immediate positions are net amounts (in terms of par values) of securities arranged to make delivery on short sales and those for which the securities owned by nonbank dealer firms and dealer departments of commercial banks on a obtained have been used as collateral on borrowings, that is, matched agreements. commitment, that is, trade-date basis, including any such securities that have 5. Includes both repurchase agreements undertaken to finance positions and been sold under agreements to repurchase (RPs). The maturities of some "matched book" repurchase agreements. repurchase agreements are sufficiently long, however, to suggest that the securi- 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 1985 AAggeennccyy 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. 1 Federal and federally sponsored agencies 237,787 240,068 271,220 284,871 286,159 289,277 288,657' 292,584 293,930 2 Federal agencies 33,055 33,940 35,145 35,646 35,354 35,338 35,903' 35,990' 36,121 3 Defense Department1 354 243 142 97 93 89 82 79 75 4 Export-Import Bank2'3 14,218 14,853 15,882 15,746 15,746 15,744 15,419 15,417' 15,417 5 Federal Housing Administration4 288 194 133 119 118 116 117 116 115 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 1,337 970 970 970 1,940 1,940 1,940 8 Tennessee Valley Authority 14,365 14,970 15,435 16,475 16,188 16,180' 16,106' 16,199' 16,335 9 United States Railway Association6 194 111 51 74 74 74 74 74 74 10 Federally sponsored agencies7 204,732 206,128 236,075 249,225 250,805 253,939 252,754 256,594' 257,809 11 Federal Home Loan Banks 55,967 48,930 65,085 69,898 70,244 71,949 72,384 73,260 73,840 12 Federal Home Loan Mortgage Corporation 4,524 6,793 10,270 12,723 13,197 13,393 12,720 13,239 11,016 13 Federal National Mortgage Association8 70,052 74,594 83,720 89,518 90,208 91,318 91,693 92,578 94,576 14 Farm Credit Banks 73,004 72,816 71,193 70,039 70,069 70,092 68,287 69,274 69,933 15 Student Loan Marketing Association 2,293 3,402 5,745 7,047 7,087 7,187 7,670 8,243' 8,444 MEMO 16 Federal Financing Bank debt 126,424 135,791 145,217 149,957 152,962 152,941 153,513 153,565 154,145 Lending to federal and federally sponsored 17 Export-Import Bank3 14,177 14,789 15,852 15,729 15,729 15,729 15,409 15,409 15,409 18 Postal Service6 1,221 1,154 1,087 720 720 720 1,690 1,690 1,609 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 14,750 14,463 14,455 14,381 14,474 14,610 21 United States Railway Association6 194 111 51 74 74 74 74 74 74 Other Lending10 22 Farmers Home Administration 53,261 55,266 58,971 62,606 63,546 63,779 64,169 63,969 64,189 23 Rural Electrification Administration 17,157 19,766 20,693 21,183 21,364 21,463 21,676 21,792 21,826 24 Other 22,774 26,460 29,853 31,909 32,066 31,721 31,114 31,157 31,428 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. Some data are estimated. 2. Includes participation certificates reclassified as debt beginning Oct. 1,1976. 8. Before late 1981, the Association obtained financing through the Federal 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. Financing Bank. 4. Consists of debentures issued in payment of Federal Housing Administration 9. The FFB, which began operations in 1974, is authorized to purchase or sell insurance claims. Once issued, these securities may be sold privately on the obligations issued, sold, or guaranteed by other federal agencies. Since FFB securities market. incurs debt solely for the purpose of lending to other agencies, its debt is not 5. Certificates of participation issued before fiscal 1969 by the Government included in the main portion of the table in order to avoid double counting. National Mortgage Association acting as trustee for the Fanners Home Adminis- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter tration; Department of Health, Education, and Welfare; Department of Housing contain loans guaranteed by numerous agencies with the guarantees of any and Urban Development; Small Business Administration; and the Veterans particular agency being generally small. The Farmers Home Administration item Administration. consists exclusively of agency assets, while the Rural Electrification Administra- 6. Off-budget. tion entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 1.45 NEW SECURITY ISSUES State and Local Governments Millions of dollars 1985 Type of i o s r s u u e s e o r issuer, 11998822 11998833 11998844 Mar. Apr. May June July Aug. Sept.' Oct. 1 All issues, new and refunding1 79,138 86,421 106,641 9,873 12,095 14,097 11,801 12,268 15,239 13,345 20,780 Type of issue 2 General obligation 21,094 21,566 26,485 2,998 3,265 4,535 2,739 5,257 3,160 3,953 5,852 3 U.S. government loans2 225 96 16 5 0 2 0 0 0 0 0 4 Revenue 58,044 64,855 80,156 6,875 8,830 9,562 9,062 7,011 12,079 9,392 14,928 5 U.S. government loans2 461 253 17 0 2 0 1 6 2 0 6 Type of issuer 6 State 8,438 7,140 9,129 252 958 1,298 350 786 800 1,501 1,337 7 Special district and statutory authority 45,060 51,297 63,550 5,754 7,279 8,126 7,625 6,893 9,484 7,580 12,374 8 Municipalities, counties, townships, school districts 25,640 27,984 33,962 3,867 3,858 4,673 3,826 4,589 4,955 4,264 6,371 9 Issues for new capital, total 74,804 72,441 94,050 8,253 9,075 9,279 7,966 7,660 10,709 9,797 12,288 Use of proceeds 10 Education 6,482 8,099 7,553 1,018 1,121 1,169 962 797 1,194 1,317 1,518 11 Transportation 6,256 4,387 7,552 173 319 631 276 651 252 471 1,264 12 Utilities and conservation 14,259 13,588 17,844 1,491 2,347 1,478 1,844 720 1,987 1,358 2,924 13 Social welfare 26,635 26,910 29,928 3,155 3,105 3,454 2,956 3,155 4,283 3,989 4,305 14 Industrial aid 8,349 7,821 15,415 584 293 782 560 553 1,524 735 1,507 15 Other purposes 12,822 11,637 15,758 1,832 1,890 1,765 1,368 1,784 1,469 2,009 2,466 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 Apr. May June July Aug.' Sept. Oct. Nov. p 1 All issues1 84,638 120,074 132,311 n,85y 12,958' 19,450' 11,959' 14,733 11,267' 11,527 13,469 2 Bonds2 54,076 68,495 109,683 8,915' 9,800' 15,71c 8,752' 11,337 8,796' 9,229 10,844 Type of offering 3 Public 44,278 47,369 73,357 8,915' 9,800' 15.71C 8,752' 11,337 8,796' 9,229 10,844 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 24,607 922 1,500 8,044 2,688 2,352 2,079 1,953 4,072 6 Commercial and miscellaneous 5,442 7,540 13,726 1,317 639 865 1,642 921 186 898 933 7 Transportation 1,491 3,833 4,694 334 357 512 76 459 177 348 125 8 Public utility 12,327 9,125 10,679 860 1,136 585 434' 857 1,042 863 1,114 9 Communication 2,390 3,642 2,997 0 150 125 110 1,295 367 690 100 10 Real estate and financial 19,604 27,502 52,980 5,483' 6,018' 5,579' 3,802' 5,453 4,945' 4,477 4,500 11 Stocks3 30,562 51,579 22,628 2,940 3,158 3,740 3,207 3,396 2,471 2,298 2,625 Type 12 Preferred 5,113 7,213 4,118 312 634 726 631 754 653 406 782 13 Common 25,449 44,366 18,510 2,628 2,524 3,014 2,576 2,642 1,818 1,892 1,843 Industry group 14 Manufacturing 5,649 14,135 4,054 283 504 558 601 235 820 279 746 15 Commercial and miscellaneous 7,770 13,112 6,277 1,019 624 1,453 562 1,293 507 385 566 16 Transportation 709 2,729 589 522 33 236 0 127 107 113 21 17 Public utility 7,517 5,001 1,624 157 185 91 87 73 47 408 12 18 Communication 2,227 1,822 419 5 119 151 99 18 7 41 5 19 Real estate and financial 6,690 14,780 9,665 954 1,693 1,251 1,798 1,650 983 1,072 1,275 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'' Apr. May June July Aug. Sept. Oct.' Nov. INVESTMENT COMPANIES' 1 Sales of own shares2 84,345 107,480 18,049 16,408 18,191 20,284 18,049 16,936 22,099 20,630 2 Redemptions of own shares3 57,100 77,032 13,500 10,069 9,836 11,502 10,837 9,963 10,653 11,238 3 Net sales 27,245 30,448 4,549 6,339 8,355 8,782 7,212 6,973 11,446 9,392 4 Assets4 113,599 137,126 164,087 178,275 186,284 195,707 201,608 203,210 218,720 236,350 5 Cash position5 8,343 11,978 15,444 15,017 15,565 16,943 17,959 18,700 21,987 21,621 6 Other 105,256 125,148 148,643 163,258 170,719 178,764 183,649 184,510 196,733 214,729 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 Q4 Q1 Q2 Q3 Q4 Ql Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 150.0 213.8 273.3 247.6 268.0 277.8 271.2 276.2 281.7 288.1 309.1 2 Profits before tax 169.6 205.0 237.6 227.6 247.4 247.4 227.7 228.0 220.0 218.7 228.6 3 Profits tax liability 63.1 75.2 93.6 84.0 99.1 100.6 87.4 87.4 83.4 82.3 87.4 4 Profits after tax 106.5 129.8 144.0 143.6 148.3 146.7 140.3 140.6 136.6 136.4 141.1 5 Dividends 66.9 70.8 78.1 73.1 75.3 77.5 78.9 80.7 82.0 83.1 83.9 6 Undistributed profits 39.6 59.0 65.9 70.6 73.1 69.2 61.3 60.0 54.6 53.3 57.3 7 Inventory valuation -10.4 -10.0 -5.4 -8.9 -13.0 -5.6 -1.3 -1.6 .7 2.2 4.7 8 Capital consumption adjustment -9.2 18.8 41.0 28.9 33.5 36.0 44.8 49.8 61.1 67.2 75.9 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 1.49 NONFINANCIAL CORPORATIONS Assets and Liabilities Billions of dollars, except for ratio 1984 1985 AAccccoouunntt 11997799 11998800 11998811 11998822 11998833 Q2 Q3 Q4 Q1 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 1986 IInndduussttrryy 11998833 11998844 11998855 Q2 Q3 Q4 Q1 Q2 Q3 Q41 Ql1 1 Total nonfarm business 304.78 354.44 384.22 349.97 361.48 368.29 371.16 387.83 388.90 388.98 402.13 Manufacturing 2 Durable goods industries 53.08 66.24 7722..5533 64.03 68.26 71.43 69.87 73.96 72.85 73.46 71.95 3 Nondurable goods industries 63.12 72.58 79.89 71.93 74.18 75.53 75.78 80.36 81.19 82.22 82.79 Nonmanufacturing 4 Mining 15.19 16.86 15.84 16.38 16.82 17.00 15.66 16.51 15.94 15.24 15.30 Transportation 5 Railroad 4.88 6.79 7.33 7.34 7.31 6.44 6.02 7.48 8.13 7.68 7.02 6 Air 4.36 3.56 4.42 3.53 3.72 3.65 4.20 3.66 5.20 4.64 5.% 7 Other 4.72 6.17 6.02 6.14 6.47 6.18 6.01 6.37 5.77 5.93 5.83 J'ublic utilities 8 Electric 37.27 37.03 35.60 37.79 36.63 35.40 36.65 36.04 35.34 34.38 35.49 9 Gas and other 7.70 10.44 12.63 10.16 11.28 11.52 11.81 12.43 12.80 13.47 13.50 10 Commercial and other2 114.45 134.75 149.96 132.67 136.80 141.13 145.16 151.02 151.69 151.96 164.30 •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 Billions of dollars, end of period 1984 1985 1981 1982 1983 Q1 Q2 Q3 Q4 Q1 ASSETS Accounts receivable, gross 1 Consumer 72.4 78.1 87.4 87.4 90.5 95.6 96.7 99.1 2 Business 100.3 101.4 113.4 120.5 124.4 124.5 135.2 142.1 3 Real estate 17.9 20.2 22.5 22.2 23.0 25.2 26.3 27.2 4 Total 190.5 199.7 223.4 230.1 238.0 245.3 258.3 268.5 Less: 5 Reserves for unearned income 30.0 31.9 33.0 32.8 33.9 36.0 36.5 36.6 6 Reserves for losses 3.2 3.5 4.0 4.1 4.4 4.3 4.4 4.9 7 Accounts receivable, net 157.3 164.3 186.4 193.2 199.6 205.0 217.3 227.0 27.1 30.7 34.0 35.7 35.8 36.4 35.4 35.9 8 All other 184.4 195.0 220.4 228.9 235.4 241.3 9 Total assets LIABILITIES 16.1 18.3 18.7 16.2 18.3 19.7 21.3 19.8 10 Bank loans 57.2 51.1 59.7 64.8 68.5 66.8 72.5 79.1 11 Commercial paper Debt 11.3 12.7 13.9 14.1 15.5 16.1 16.2 16.8 12 Other short-term 56.0 64.4 68.1 70.3 69.7 73.8 77.2 78.3 13 Long-term 18.5 21.2 30.1 32.4 32.1 32.6 33.1 35.4 14 All other liabilities 25.3 27.4 29.8 31.1 31.4 32.3 32.3 33.5 15 Capital, surplus, and undivided profits 16 Total liabilities and capital 184.4 195.0 220.4 228.9 235.4 241.3 252.7 262.9 NOTE. Components may not add to totals due to rounding. These data also appear in the Board's G.20 (422) release. For address, see 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 NNNooovvv... 333000,,, 111999888555''' Sept. Oct. Nov. Sept. Oct. Nov. Sept. Oct. Nov. 1 Total 148,624 -3,380 5,112 2,181 26,111 31,099 29,341 29,491 25,987 27,160 Retail financing of installment sales 2 Automotive (commercial vehicles) 14,437 660 586 199 1,488 1,441 1,081 828 855 882 3 Business, industrial, and farm equipment 20,122 -329 -46 -185 1,180 1,222 1,202 1,509 1,268 1,387 Wholesale financing 4 Automotive 21,277 -4,746 3,716 1,358 7,853 12,252 10,747 12,599 8,536 9,389 5 Equipment 4,435 6 32 63 508 494 591 502 462 528 6 All other 77,,339955 118 45 267 1,751 1,815 1,861 1,633 1,770 1,594 Leasing 7 Automotive 15,037 409 417 -832 1,119 972 700 710 555 1,532 8 Equipment 38,720 271 381 574 1,215 1,178 1,754 944 797 1,180 9 Loans on commercial accounts receivable and factored commercial accounts receivable 15,652 677 -662 526 9,654 9,749 10,182 8,977 10,411 9,656 10 All other business credit 11,549 -446 643 211 1,343 1,976 1,223 1,789 1,333 1,012 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

A48 Domestic Nonfinancial Statistics • March 1986 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1985 IItteemm 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 94.6 92.8 96.8 102.4 119.2 104.4 104.6 104.1 107.5r 108.4 2 Amount of loan (thousands of dollars) 69.8 69.5 73.7 79.7 89.4 74.4 76.7 77.1 78.5' 78.8 3 Loan/price ratio (percent) 76.6 77.1 78.7 79.9 77.5 74.6 76.0 76.0 75.5' 75.4 4 Maturity (years) 27.6 26.7 27.8 27.7 27.5 24.5 26.7 26.7 26.4' 26.6 5 Fees and charges (percent of loan amount)2 2.95 2.40 2.64 2.40 2.24 2.46 2.62 2.49 2.57' 2.61 6 Contract rate (percent per annum) 14.47 12.20 11.87 11.31 10.94 10.78 10.69 10.64 10.55' 10.39 Yield (percent per annum) 7 FHLBB series' 15.12 12.66 12.37 11.75 11.34 11.24 11.17 11.09 11.01' 10.87 8 HUD series4 15.79 13.43 13.80 12.06 12.09 12.06 12.02 11.86 11.56 11.03 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5. 15.30 13.11 13.81 11.89 12.12 11.99 12.04 11.87 11.28 10.70 10 GNMA securities6 14.68 12.25 13.13 11.54 11.48 11.24 11.29 11.16 10.81 10.39 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 66,031 74,847 83,339 94,777 95,634 96,324 96,769 97,228 97,807 98,282 17. FHA/VA-insured 39,718 37,393 35,148 34,307 34,276 34,177 34,084 33,885 33,828 33,684 13 Conventional 26,312 37,454 48,191 60,470 61,359 62,147 62,685 63,343 63,979 64,598 Mortgage transactions (during period) 14 Purchases 15,116 17,554 1166,,772211 11,,990044 1,918 1,921 1,739 1,767 1,624 1,663 15 Sales 2 3,528 978 0 251 230 101 200 100 319 Mortgage commitments1 16 Contracted (during period) 22,105 18,607 21,007 1,593 1,583 1,797 1,638 1,733 1,199 1,858 17 Outstanding (end of period) 7,606 5,461 6,384 5,062 4,517 4,245 3,974 3,840 3,330 3,402 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)* 18 Total 5,131 5,996 9,283 12,576 12,844 13,521 13,088 13,025 13,194 n.a. 19 FHA/VA 1,027 974 910 838 842 835 829 823 816 n.a. 20 Conventional 4,102 5,022 8,373 11,738 12,002 12,686 12,259 12,202 12,378 n.a. Mortgage transactions (during period) 71 Purchases 23,673 23,089 21,886 4,106 4,626 3,602 4,219 3,215 3,680 n.a. 22 24,170 19,686 18,506 3,292 4,200 2,682 4,501 3,076 3,449 n.a. Mortgage commitments9 23 Contracted (during period) 28,179 32,852 32,603 5,172 3,259 3,958 2,919 3,995 4,854 n.a. 24 Outstanding (end of period) 7,549 16,964 13,318 n.a. 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 1. 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 Q3 Q4 Ql Q2 Q3 1 1,631,262 1,811,395 2,022,521 1,972,773 2,022,521 2,068,282 2,126,905 2,183,935 ? 1- to 4-family 1,074,670 1,192,840 1,329,606 1,296,534 1,329,606 1,360,325 1,401,952 1,443,651 3 Multifamily 145,767 156,738 170,536 167,892 170,536 175,474 178,488 181,452 4 300,799 349,195 410,742 395,683 410,742 420,997 435,708 449,821 5 110,026 112,622 111,637 112,664 111,637 111,486 110,757 109,011 6 Major financial institutions 1,021,327 1,108,249 1,241,197 1,214,729 1,241,197 1,261,901 1,292,438 1,321,195 7 Commercial banks1 301,272 330,521 374,780 363,156 374,780 383,444 395,956 408,227 8 1- to 4-family 173,804 182,514 196,540 193,090 196,540 198,912 203,510 207,775 9 Multifamily 16,480 18,410 20,216 20,083 20,216 21,974 21,698 21,963 10 Commercial 102,553 120,210 147,845 139,742 147,845 152,242 160,121 167,532 11 Farm 8,435 9,387 10,179 10,241 10,179 10,316 10,627 10,957 17 Mutual savings banks 94,452 131,940 154,441 146,072 154,441 161,032 165,705 173,476 H 64,488 93,649 107,302 101,810 107,302 111,592 114,375 119,023 14 14,780 17,247 19,817 18,947 19,817 20,668 21,357 22,368 15 Commercial 15,156 21,016 27,291 25,285 27,291 28,741 29,942 31,971 16 Farm 28 28 31 30 31 31 31 114 17 Savings and loan associations 483,614 494,789 555,277 550,129 555,277 559,263 569,292 575,563 18 393,323 390,883 431,450 429,101 431,450 433,429 441,201 446,061 19 Multifamily 38,979 42,552 48,309 47,861 48,309 48,936 49,813 50,362 20 Commercial 51,312 61,354 75,518 73,167 75,518 76,898 78,278 79,140 71 Life insurance companies 141,989 150,999 156,699 155,372 156,699 158,162 161,485 163,929 ?? 1- to 4-family 16,751 15,319 14,120 14,159 14,120 13,840 13,562 13,382 73 Multifamily 18,856 19,107 18,938 18,769 18,938 18,964 18,983 18,972 74 Commercial 93,547 103,831 111,175 109,801 111,175 113,187 116,812 119,543 25 Farm 12,835 12,742 12,466 12,643 12,466 12,171 12,128 12,032 26 Federal and related agencies 138,741 148,328 158,993 154,768 158,993 163,531 165,912 166,248 27 Government National Mortgage Association 4,227 3,395 2,301 2,389 2,301 1,964 1,825 1,640 78 676 630 585 594 585 576 564 552 29 Multifamily 3,551 2,765 1,716 1,795 1,716 1,388 1,261 1,088 30 Farmers Home Administration 1,786 2,141 1,276 738 1,276 1,062 790 577 31 1- to 4-family 783 1,159 213 206 213 156 223 185 32 Multifamily 218 173 119 126 119 82 136 139 33 Commercial 377 409 497 113 497 421 163 72 34 Farm 408 400 447 293 447 403 268 181 35 Federal Housing and Veterans Administration 5,228 4,894 4,816 4,749 4,816 44,,887788 4,888 44,,991188 36 1- to 4-family 1,980 1,893 2,048 1,982 2,048 2,181 2,199 2,251 37 Multifamily 3,248 3,001 2,768 2,767 2,768 2,697 2,689 2,667 38 Federal National Mortgage Association 71,814 78,256 87,940 84,850 87,940 91,975 94,777 96,769 39 1- to 4-family 66,500 73,045 82,175 79,175 82,175 86,129 88,788 90,590 40 Multifamily 5,314 5,211 5,765 5,675 5,765 5,846 5,989 6,179 41 50,953 52,010 52,261 52,595 52,261 52,104 51,056 49,255 4? 3,130 3,081 3,074 3,068 3,074 3,064 3,006 2,895 43 Farm 47,823 48,929 49,187 49,527 49,187 49,040 48,050 46,360 44 Federal Home Loan Mortgage Corporation 4,733 7,632 10,399 9,447 10,399 11,548 12,576 13,089 45 4,686 7,559 9,654 8,841 9,654 10,642 11,288 11,457 46 Multifamily 47 73 745 606 745 906 1,288 1,632 47 Mortgage pools or trusts2 216,654 285,073 332,057 317,548 332,057 347,793 365,748 388,948 48 Government National Mortgage Association 118,940 159,850 179,981 175,770 179,981 185,954 192,925 201,026 49 116,038 155,950 175,589 171,481 175,589 181,419 188,228 196,198 50 Multifamily 2,902 3,900 4,392 4,289 4,392 4,535 4,697 4,828 51 Federal Home Loan Mortgage Corporation 42,964 57,895 70,822 63,964 70,822 76,759 83,327 91,915 5? 42,560 57,273 70,253 63,352 70,253 75,781 82,369 90,997 53 Multifamily 404 622 569 612 569 978 958 918 54 Federal National Mortgage Association3 14,450 25,121 36,215 32,888 36,215 39,370 42,755 48,769 55 1- to 4-family 14,450 25,121 35,965 32,730 35,965 38,772 41,985 47,857 56 Multifamily n.a. n.a. 250 158 250 598 770 912 57 Farmers Home Administration 40,300 42,207 45,039 44,926 45,039 45,710 46,741 47,238 58 20,005 20,404 21,813 21,595 21,813 21,928 21,962 22,090 59 4,344 5,090 5,841 5,618 5,841 6,041 6,377 6,415 60 7,011 7,351 7,559 7,844 7,559 7,681 8,014 8,192 61 Farm 8,940 9,362 9,826 9,869 9,826 10,060 10,388 10,541 67 254,540 269,745 290,274 285,728 290,274 295,057 302,807 307,544 63 155,496 164,360 178,825 175,350 178,825 181,904 188,692 192,338 64 36,644 38,587 41,091 40,586 41,091 41,861 42,472 43,009 65 30,843 35,024 40,857 39,731 40,857 41,827 42,378 43,371 66 Farm 31,557 31,774 29,501 30,061 29,501 29,465 29,265 28,826 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

A48 Domestic Nonfinancial Statistics • March 1986 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1985 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998833 11998844 Mar. Apr. May June July Aug. Sept. Oct/ Nov. Amounts outstanding (end of period) 1 Total 383,701 460,500 471,567 479,935 488,666 495,813 503,834 512,393 524,698 531,603 537,021 By major holder 2 Commercial banks 171,978 212,391 219,970 223,850 226,973 229,676 232,913 236,390 241,030 243,573 246,064 3 Finance companies .... 87,429 96,747 99,133 101,324 104,130 105,971 107,985 110,378 116,422 118,846 119,632 4 Credit unions 53,471 67,858 70,432 71,418 72,381 73,468 74,614 75,689 76,447 77,181 77,760 5 Retailers2 37,470 40,913 37,082 37,091 37,472 37,548 37,399 37,481 37,421 37,784 38,905 6 Savings and loans 23,108 29,945 32,349 33,514 34,754 35,901 37,301 38,496 39,421 40,281 40,732 7 Gasoline companies ... 4,131 4,315 3,820 3,834 3,918 4,075 4,316 4,467 4,346 4,241 4,145 8 Mutual savings banks.. 6,114 8,331 8,781 8,904 9,038 9,174 9,306 9,492 9,611 9,697 9,783 By major type of credit 9 Automobile 143,114 172,589 179,661 183,558 187,795 191,315 194,678 197,768 205,102 208,125 208,932 10 Commercial banks... 67,557 85,501 89,257 90,915 92,403 94,099 95,763 96,576 98,042 98,604 98,787 11 Credit unions 25,574 32,456 33,687 34,159 34,620 35,139 35,687 36,201 36,563 36,914 37,191 12 Finance companies .. 49,983 54,632 56,717 58,484 60,772 62,077 63,228 64,991 70,497 72,607 72,954 13 Revolving 81,977 101,555 100,434 101,887 103,492 104,333 105,539 107,584 109,941 111,919 115,184 14 Commercial banks... 44,184 60,549 63,684 65,127 66,311 66,956 68,093 69,949 72,514 74,255 76,567 15 Retailers 33,662 36,691 32,930 32,926 33,263 33,302 33,130 33,168 33,081 33,423 34,472 16 Gasoline companies . 4,131 4,315 3,820 3,834 3,918 4,075 4,316 4,467 4,346 4,241 4,145 17 Mobile home 23,862 24,556 24,456 24,675 24,925 25,205 25,545 25,826 26,043 26,197 26,235 18 Commercial banks... 9,842 9,610 9,425 9,432 9,445 9,480 9,493 9,550 9,600 9,598 9,592 19 Finance companies .. 9,547 9,243 8,981 8,992 9,016 9,061 9,146 9,163 9,170 9,177 9,141 20 Savings and loans ... 3,906 4,985 5,305 5,496 5,699 5,887 6,117 6,313 66,,446655 6,606 6,680 21 Credit unions 567 718 745 755 765 777 789 800 880088 816 822 22 Other 134,748 161,800 167,016 169,815 172,454 174,960 178,072 181,215 183,612 185,362 186,670 23 Commercial banks... 50,395 56,731 57,604 58,376 58,814 59,141 59,564 60,315 60,874 61,116 61,118 24 Finance companies .. 27,899 32,872 33,435 33,848 34,342 34,833 35,611 36,224 36,755 37,062 37,537 25 Credit unions 27,330 34,684 36,000 36,504 36,996 37,552 38,138 38,688 39,076 39,451 39,747 26 Retailers 3,808 4,222 4,152 4,165 4,209 4,246 4,269 4,313 4,340 4,361 4,433 27 Savings and loans ... 19,202 24,960 27,044 28,018 29,055 30,014 31,184 32,183 32,956 33,675 34,052 28 Mutual savings banks 6,114 8,331 8,781 8,904 9,038 9,174 9,306 9,492 9,611 9,697 9,783 Net change (during period) 29 Total 48,742 76,799 8,342 8,270 9,042 5,227 6,247 5,726 11,531 8,125 4,883 By major holder 30 Commercial banks 19,488 40,413 4,847 3,853 4,108 1,690 1,824 1,764 3,748 2,863 3,213 31 Finance companies — 18,572 18,636 2,048 1,885 2,373 1,218 1,629 2,371 6,407 3,140 550 32 Credit unions 6,218 14,387 797 1,215 673 797 1,149 479 374 1,179 484 33 Retailers2 5,075 3,443 91 168 341 -31 112 -99 -27 97 245 34 Savings and loans 7,285 6,837 715 1,063 1,327 1,417 1,338 969 924 620 339 35 Gasoline companies ... 68 184 -142 -45 59 -51 21 103 -43 62 30 36 Mutual savings banks.. 1,322 2,217 -14 131 161 187 174 139 148 164 22 By major type of credit 37 Automobile 16,856 29,475 3,391 3,488 3,792 2,686 2,365 2,206 7,204 3,654 1,085 38 Commercial banks... 8,002 17,944 1,767 1,546 1,589 1,488 1,025 136 1,048 494 263 39 Credit unions 2,978 6,882 381 580 325 380 550 226 180 565 239 40 Finance companies .. 11,752 9,298 1,243 1,362 1,878 818 790 1,844 5,976 2,595 583 41 Revolving 12,353 19,578 2,631 2,126 2,429 -73 856 936 1,974 2,042 2,856 42 Commercial banks... 7,518 16,365 2,698 2,003 2,095 42 733 968 2,071 1,908 2,627 43 Retailers 4,767 3,029 75 168 275 -64 102 -135 -54 72 199 44 Gasoline companies . 68 184 -142 -45 59 -51 21 103 -43 62 30 45 Mobile home 1,452 694 -11 218 186 196 324 199 168 178 -4 46 Commercial banks... 237 -232 -50 19 -21 -31 -22 3 61 13 3 47 Finance companies .. 776 -608 -63 13 -19 1 74 -13 -19 32 -12 48 Savings and loans ... 763 1,079 92 175 219 217 261 204 121 122 1 49 Credit unions 64 151 10 11 7 9 11 12 5 11 4 50 Other 18,081 27,052 2,331 2,438 2,635 2,418 2,702 2,385 2,185 2,251 946 51 Commercial banks... 3,731 6,336 432 285 445 191 88 657 568 448 320 52 Finance companies .. 6,044 9,946 868 510 514 399 765 540 450 513 -21 53 Credit unions 3,176 7,354 406 624 341 408 588 248 189 603 241 54 Retailers 308 414 16 0 66 33 10 36 27 25 46 55 Savings and loans ... 6,522 5,758 623 888 1,108 1,200 1,077 765 803 498 338 56 Mutual savings banks 1,322 2,217 -14 131 161 187 174 139 148 164 22 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 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks1 1 48-month new car2 16.82 13.92 13.71 13.16 n.a. n.a. 12.72 n.a. n.a. 12.39 2 24-month personal 18.64 16.50 16.47 16.09 n.a. n.a. 15.84 n.a. n.a. 15.61 3 120-month mobile home2 18.05 16.08 15.58 15.03 n.a. n.a. 14.72 n.a. n.a. 14.66 4 Credit card 18.51 18.78 18.77 18.74 n.a. n.a. 18.62 n.a. n.a. 18.57 Auto finance companies 5 New car 16.15 12.58 14.62 11.87 12.06 12.46 10.87 8.84 9.97 11.71 6 Used car 20.75 18.74 17.85 17.84 17.77 17.49 17.57 17.31 17.21 17.28 OTHER TERMS3 Maturity (months) 7 New car 45.9 45.9 48.3 50.9 51.3 51.7 51.1 51.2 51.5 52.0 8 Used car 37.0 37.9 39.7 41.4 41.3 41.5 41.6 41.4 41.4 41.5 Loan-to-value ratio 9 New car 85 86 88 91 91 91 91 92 93 92 10 Used car 90 92 92 94 94 95 95 95 95 95 Amount financed (dollars) 11 New car 8,178 8,787 9,333 9,775 9,965 10,355 10,422 10,449 10,498 10,205 12 Used car 4,746 5,033 5,691 6,117 6,116 6,146 6,139 6,097 6,091 6,167 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

A48 Domestic Nonfinancial Statistics • March 1986 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 11997799 11998800 11998811 11998822 11998833 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 388.7 340.0 371.6 398.3 538.9 755.6 442.1 508.8 569.0 704.0 807.3 718.0 By sector and instrument 2 U.S. government 37.4 79.2 87.4 161.3 186.6 198.8 218.4 222.0 151.1 172.7 224.9 181.1 3 Treasury securities 38.8 79.8 87.8 162.1 186.7 199.0 218.8 222.1 151.2 172.9 225.0 181.2 4 Agency issues and mortgages -1.4 -.6 -.5 -.9 -.1 -.2 -.4 -.1 -.1 -.2 -.1 -.1 5 Private domestic nonfinancial sectors 351.3 260.8 284.2 237.0 352.3 556.8 223.7 286.7 417.9 531.3 582.4 536.9 6 Debt capital instruments 213.9 186.3 153.7 153.5 249.1 322.1 167.1 225.4 272.7 281.8 362.4 349.7 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 88.5 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 61.5 9 Mortgages 166.2 129.4 108.5 86.2 175.7 214.1 87.1 146.7 204.7 218.5 209.6 199.7 10 Home mortgages 121.7 93.8 71.6 50.4 115.6 139.2 50.1 96.2 135.1 144.8 133.5 136.7 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 15.1 12 Commercial 24.4 19.2 22.2 25.2 47.6 58.8 27.3 42.3 53.0 55.6 62.0 49.7 13 Farm 11.8 9.3 9.9 5.3 3.0 2.1 3.9 1.9 4.1 2.0 2.1 -1.8 14 Other debt instruments 137.5 74.5 130.5 83.6 103.3 234.8 56.6 61.3 145.2 249.5 220.0 187.2 15 Consumer credit 45.4 4.7 22.7 20.1 59.8 96.5 21.7 44.1 75.5 102.1 90.9 116.7 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 25.4 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 16.3 18 Other 29.7 27.1 33.9 14.0 18.3 35.2 12.4 13.6 23.1 23.7 46.7 28.8 19 By borrowing sector 351.3 260.8 284.2 237.0 352.3 556.8 223.7 286.7 417.9 531.3 582.4 536.9 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 71.6 21 Households 181.0 117.9 119.2 90.4 190.4 249.5 93.5 156.0 224.8 248.2 250.7 268.0 22 Farm 21.4 14.3 16.4 7.9 4.5 2.9 5.9 1.1 7.8 2.1 3.8 -7.2 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 71.4 24 Corporate 96.0 80.4 103.4 71.9 54.6 181.7 52.9 38.0 71.1 176.6 186.8 133.0 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 -7.1 26 Bonds 3.9 .8 5.4 6.7 3.8 4.1 11.0 4.6 2.9 1.1 7.0 5.2 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 -6.0 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 2.6 30 Total domestic plus foreign 408.9 367.2 398.8 414.0 557.8 757.4 463.3 524.0 591.5 726.9 787.8 710.9 Financial sectors 31 Total net borrowing by financial sectors 82.4 57.6 89.0 76.2 85.2 130.3 57.5 66.7 103.7 119.2 141.3 165.6 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 92.7 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 66.7 35 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 30.6 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 1.8 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 28.8 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 11.7 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 66.7 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 5.2 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 9.2 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 10.9 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 48.4 49 REITs -.1 -.5 -.2 * .3 .2 -.3 -.2 .3 .1 .1 All sectors 50 Total net borrowing 491.3 424.9 487.8 490.2 643.0 887.6 520.8 590.7 695.2 846.1 929.2 876.5 51 U.S. government securities 84.8 122.9 133.0 225.9 254.4 273.8 288.3 288.4 220.5 242.4 305.1 273.9 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 88.5 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 97.2 54 Mortgages 166.1 129.3 108.4 86.2 175.6 213.9 87.1 146.6 204.7 218.3 209.4 199.6 55 Consumer credit 45.4 4.7 22.7 20.1 59.8 96.5 21.7 44.1 75.5 102.1 90.9 116.7 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 21.2 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 36.3 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 43.1 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 -^5.5 25.9 60 Mutual funds .1 5.2 6.3 18.4 32.8 37.7 24.3 36.8 28.9 39.6 35.7 92.0 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 -66.1 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 -75.7 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 4.2 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. 1982 1983 1984 1985 Transaction category, or sector 1980 1981 1984 H2 HI H2 1 Total funds advanced in credit markets to domestic nonflnancial sectors 388.7 340.0 398.3 538.9 755.6 442.1 508.8 807.3 718 .0 By public agencies and foreign 2 Total net advances 75.2 97.1 97.7 114.1 117.5 142.2 127.1 120.2 114.7 123.2 161.2 193. 3 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 42.5 52 .1 4 Residential mortgages 35.8 31.7 23.5 61.0 76.1 56.5 74.5 80.2 72.1 52.8 60.1 86 .0 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 15.5 11. 7 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 43.2 43 .5 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 26.5 .4 8 Sponsored credit agencies 53.1 45.6 48.2 65.5 69.8 73.3 69.1 68.6 71.0 73.6 73.0 .7 9 Monetary authorities 7.7 4.5 9.2 9.8 10.9 8.4 15.7 15.6 6.2 11.9 4.9 .3 10 Foreign -4.5 23.3 16.2 22.8 27.1 43.4 25.3 27.0 27.2 29.9 56.9 .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 80.1 .7 12 Foreign 20.2 27.2 27.2 15.7 18.9 1.7 21.2 15.3 22.5 22.9 -19.5 .1 Private domestic funds advanced 13 Total net advances 381.6 314.9 348.5 364.8 508.1 690.0 405.9 470.0 546.1 673.3 706.8 610 .3 14 U.S. government securities 91.0 107.1 115.9 203.1 226.9 237.8 252.6 247.6 206.1 213.0 262.7 221 .8 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 92.6 88 .5 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 42.2 33 .9 17 Residential mortgages 94.2 69.1 52.9 -5.5 48.9 96.6 -18.7 22.2 75.5 107.9 85.3 65 .7 18 Other mortgages and loans 156.7 96.3 153.8 104.6 153.0 275.6 78.2 109.4 196.7 311.7 239.5 212 .1 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 15.5 11. 7 Private financial intermediation 20 Credit market funds advanced by private financial institutions 316.4 281.3 317.2 287.6 382.7 553.2 300.7 334.6 430.7 548.1 558.3 472 .9 21 Commercial banking 123.1 100.6 102.3 107.2 136.1 181.9 114.5 121.6 150.6 196.0 167.9 149. 6 22 Savings institutions 56.5 54.5 27.4 31.4 140.5 143.0 37.6 132.7 148.4 161.5 124.6 62 .0 23 Insurance and pension funds 85.6 94.5 97.6 107.4 94.2 123.1 103.8 83.0 105.3 111.8 134.4 117. 1 24 Other finance 51.2 31.7 89.9 41.5 11.9 105.1 44.8 -2.7 26.5 78.8 131.4 144 .2 25 Sources of funds 316.4 281.3 317.2 287.6 382.7 553.2 300.7 334.6 430.7 548.1 558.3 472 .9 26 Private domestic deposits and RPs 137.4 169.6 211.9 174.4 205.2 287.7 201.7 194.1 216.3 277.1 298.2 173. 8 27 Credit market borrowing 34.5 12.8 41.6 11.3 17.4 55.4 -12.2 .5 34.4 49.6 61.2 72 .8 28 Other sources 144.5 98.8 63.7 101.8 160.0 210.1 111.2 140.0 180.0 221.3 198.9 226 .3 29 Foreign funds 27.6 -21.7 -8.7 -26.7 22.1 19.0 -25.1 -14.2 58.5 27.2 10.9 10. 8 30 Treasury balances .4 -2.6 -1.1 6.1 -5.3 4.0 14.1 10.1 -20.8 1.7 6.4 19. 4 31 Insurance and pension reserves 72.9 83.7 90.7 103.2 95.1 111.7 95.3 83.5 106.8 118.0 105.5 117 .4 32 Other, net 43.6 39.4 -17.2 19.3 48.1 75.4 26.9 60.6 35.6 74.6 76.2 78 .8 Private domestic nonfinancial investors 33 Direct lending in credit markets 99.7 46.5 72.9 88.5 142.8 192.2 93.0 135.9 149.8 174.8 209.6 210 .2 34 U.S. government securities 52.5 24.6 29.3 32.1 88.3 122.8 28.9 97.5 79.1 128.3 117.3 110. 0 35 State and local obligations 9.9 7.0 11.1 29.2 43.5 42*.2 29.7 47.2 39.8 24.3 60.1 49 .2 36 Corporate and foreign bonds -1.4 -11.0 -3.9 3.9 -9.2 13.8 -14.5 -4.0 -8.4 8.5 11. 4 37 Open marketjpaper 8.6 -3.1 2.7 -.6 6.5 -1.0 -4.7 -6.0 19.1 4.4 -6.5 15. 7 38 Other r> 30.1 29.1 33.7 24.0 13.7 28.2 25.4 11.8 15.6 26.2 30.3 23 .9 39 Deposits and currency 146.8 181.1 221.9 181.6 224.4 292.2 211.5 215.9 232.8 288.5 296.0 188. 0 40 Currency 8.0 10.3 9.5 9.7 14.3 8.6 12.7 14.8 13.8 15.9 1.4 18. 6 41 Checkable deposits 18.3 5.2 18.0 15.4 23.0 21.4 29.3 49.1 -3.0 25.0 17.7 7 .4 42 Small time and savings accounts 59.3 82.9 47.0 138.1 219.5 149.2 193.1 278.9 160.1 129.9 168.6 162. 7 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 64.2 4 .2 4 4 4 4 5 6 L D Se a e c r p g u o e r s i t i t y t i s m R i e n P d s f e o p re o i s g i n ts countries 1 6 8 1 . . . 6 8 5 4 6 5 1 . . . 5 8 1 3 2 6 . . . 5 9 5 - - 7 2 3 . . . 7 5 8 - 1 7 4 . . 5 3 - - 7 5 4 5 . . . 8 0 7 -3 -2 7 6 . . . 9 3 6 -6 1 1 7 1 . . . 0 0 0 4 1 5 2 7 . . . 9 7 5 - 8 4 3 8 . . . 5 8 3 -1 - 6 3 5 2 . . . 0 6 7 - - 1 4 . . . 8 3 3 47 Total of credit market instruments, deposits and currency 246.5 227.6 294.7 270.1 3*7.2 484.5 304.5 382.6 463.3 398 .3 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 20.5 27 .2 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 79.0 77 .5 50 Total foreign funds 23.1 1.6 7.6 -3.9 49.2 62.4 .1 12.8 85.7 57.0 67.8 59 .7 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 -25.5 25 .9 52 Mutual fund shares .1 5.2 6.3 18.4 32.8 37.7 24.3 36.8 28.9 39.6 35.7 92 .0 53 Other equities -4.3 16.8 -9.3 16.9 35.0 -70.8 22.9 46.7 23.2 -80.4 -61.2 -66 .1 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 19.6 40 .9 55 Other net purchases -17.1 -3.0 -23.9 -1.8 11.4 -44.3 -16.7 7.2 15.6 -43.4 -45.1 -15 .0 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line 1 of table 1.58. 33. Line 13 less line 20 plus line 27. 2. Sum of lines 3-6 or 7-10. 34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes 6. Includes farm and commercial mortgages. mortgages. 11. Credit market funds raised by federally sponsored credit agencies, and net 40. Mainly an offset to line 9. issues of federally related mortgage pool securities. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also 48. Line 2/line 1. sum of lines 28 and 47 less lines 40 and 46. 49. Line 20/line 13. 18. Includes farm and commercial mortgages. 50. Sum of lines 10 and 29. 26. Line 39 less lines 40 and 46. 51. 53. Includes issues by financial institutions. 27. Excludes equity issues and investment company shares. Includes line 19. NOTE. Full statements for sectors and transaction types in flows and in amounts 29. Foreign deposits at commercial banks, bank borrowings from foreign outstanding may be obtained from Flow of Funds Section, Division of Research branches, and liabilities of foreign banking agencies to foreign affiliates. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits at commercial banks. D.C. 20551. 31. Excludes net investment of these reserves in corporate equities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures' 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1985 MMeeaassuurree 11998822 11998833 11998844 Apr. May June July Aug. Sept. Oct.' Nov. Dec. 1 Industrial production 103.1 109.2 121.8 124.1 124.1 124.3 124.1 125.2 125.1' 124.4 125.1 126.0 Market groupings 2 Products, total 107.8 113.9 127.1 130.8 131.4 131.6 131.6 133.0 133.1 132.0 133.1 133.9 3 Final, total 109.5 114.7 127.8 131.3 131.7 131.6 131.8 133.3 133.3 132.0 133.4' 134.2 4 Consumer goods 101.4 109.3 118.2 119.5 120.0 120.4 120.1 121.5 121.8' 120.7 122.C 123.0 5 Equipment 120.2 121.7 140.5 146.9 147.1 146.6 147.3 149.0 148.6 147.1 148.5 148.9 6 Intermediate 101.7 111.2 124.9 129.3 130.3 131.4 130.7 132.0 132.3' 132.0 132.3' 133.2 7 Materials 96.7 102.8 114.6 115.0 114.2 114.3 113.8 114.5 114.2' 114.0 114.2 115.1 Industry groupings 8 Manufacturing 102.2 110.2 123.9 126.6 126.6 126.7 126.9 128.2 127.7' 127.1 i28.(y 129.0 Capacity utilization (percent)2 9 Manufacturing 70.3 74.0 80.8 80.5 80.3 80.1 80.1 80.7 80.1' 79.5 79.9r 80.3 10 Industrial materials industries 71.7 75.3 82.3 80.9 80.1 80.1 79.5 79.9 79.5' 79.2 79.1 79.6 11 Construction contracts (1977 = 100)3 111.0 137.0 149.0 161.0 162.0 142.0 164.0 163.0 166.0 169.0 160.0 157.0 12 Nonagricultural employment, total4 136.1 137.1 143.6 147.6 148.0 148.1 148.5 148.9 149.3 149.8 150.1 150.5 13 Goods-producing, total 102.2 100.1 106.1 107.6 107.5 107.3 107.2 107.3 107.1 107.5 107.6 107.8 14 Manufacturing, total 96.6 94.8 99.8 100.1 99.9 99.7 99.5 99.6 99.1 99.4 99.6 99.9 15 Manufacturing, production-worker ... 89.1 87.9 94.0 92.6 92.3 92.0 91.8 91.9 91.5 91.8 92.0' 92.4 16 Service-producing 154.7 157.3 164.1 169.5 170.3 170.5 171.1 171.7 172.4 173.0 173.3' 174.0 17 Personal income, total 414.4'" 440.1' 482.8' 510.3' 507^ 509.<K 510.5' 511.3' 513.&- 516.8 519.4' 526.6 18 Wages and salary disbursements 369.8' 390.7' 427.8' 452.4' 453.9' 456^ 456^ 459.2' 461.9' 464.3 467.1' 427.1 19 Manufacturing 285.9' 295^ 326.8' 338.CK 338.8' 339.4' 339.2' 340.7' 341.3' 344.9 344.6' 347.9 20 Disposable personal income5 164.0 175.8 193.6 203.6 207.2 202.1 202.7 202.8 203.5 204.8 205.7 208.7 21 Retail sales (1977 = 100)6 148.1 162.0 179.0 191.5 190.7 188.8 189.9 194.2 198.4 190.6 191.9' 195.6 Prices7 22 Consumer 289.1 298.4 311.1 320.1 321.3 322.3 322.8 323.5 324.5 325.5 326.6 327.4 23 Producer finished goods 280.7 285.2 291.1 293.1 294.1 294.0 294.8 293.5 290.2 294.8 296.7 297.2 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 May June July Aug. Sept. Oct.' Nov.' Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 174,450 176,414 178,602 180,171 180,322 180,492 180,657 180,831 181,011 181,186 181,349 2 Labor force (including Armed Forces)1 112,383 113,749 115,763 117,25c 117,501' 117,595' 118,049' 118,355 118,376 118,466 3 Civilian labor force 110,204 111,550 113,544 115,339' 115,024' 115,272' 115,343' 115.79C 116,114 116,130 116,229 4 Nonagricultural industries2 96,125 97,450 101,685 103,655' 103,461' 103,751' 104,115' 104,502' 104,755 104,899 105,055 5 Agriculture 3,401 3,383 3,321 3,284' 3,14C 3,12C 3,095' 3,017' 3,058 3,070 3,151 Unemployment 6 Number 10,678 10,717 8,539 8,40c 8,423' 8,401' 8,133' 8,271' 8,301 8,161 8,023 7 Rate (percent of civilian labor force) ... 9.7 9.6 7.5 7.3 7.3 7.3 7.1' 7.1 7.1 7.0 6.9 8 Not in labor force 62,067 62,665 62,839 62,605' 63,072' 62,991' 63,062' 62,782' 62,656 62,810 62,883 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 89,566 90,196 94,461 97,421 97,473 97,707 97,977 98,217 98,559 98,739 99,059 10 Manufacturing 18,781 18,434 19,412 19,426 19,398 19,351 19,362 19,279 19,338 19,375 19,420 11 Mining 1,128 952 974 982 974 969 965 962 960 953 952 12 Contract construction 3,905 3,948 4,345 4,658 4,638 4,660 4,688 4,721 4,753 4,748 4,764 13 Transportation and public utilities 5,082 4,954 5,171 5,301 5,295 5,302 5,282 5,317 5,327 5,341 5,358 14 20,457 20,881 22,134 23,140 23,193 23,226 23,305 23,344 23,440 23,455 23,503 15 Finance 5,341 5,468 5,682 5,888 5,906 5,932 5,959 5,987 6,011 6,046 6,066 16 Service 19,036 19,694 20,761 5,270 5,276 5,284 5,314 5,338 5,356 5,376 5,397 17 Government 15,837 15,870 15,987 16,213 16,213 16,341 16,343 16,452 16,486 16,463 16,523 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 • March 1986 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1985 1985 1985 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ql Q2 Q3 Q4 Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 123.8 124.2 124.8 125.2 152.8 154.0 155.1 156.2 81.0 80.7 80.5 80.1 2 Mining 110.1 110.0 108.5' 107.0 133.4 133.6 133.9 134.1 82.6 82.3 81.CT 79.8 3 Utilities 114.2 113.6 111.4 113.5 133.7 134.5 135.4 136.3 85.5 84.4 82.3 83.3 4 Manufacturing 126.0 126.6 127.6' 128.0 156.5 157.7 158.9 160.2 80.5 80.3 80.3 79.9 5 Primary processing ... 107.5 108.1 109.5 110.4 131.6 132.0 132.4 132.8 81.6 81.9 82.7 83.1 6 Advanced processing , 137.1 137.9 138.6' 138.6 171.4 173.2 174.9 176.7 80.0 79.6 79.2' 78.5 7 Materials 115.4 114.5 114.2' 114.5 141.6 142.5 143.4 144.3 81.5 80.4 79.6 79.3 8 Durable goods 123.6 121.4 120.7 121.6 155.9 157.4 158.9 160.5 79.3 77.1 76.0 75.8 9 Metal materials .... 80.6 80.2 79.4 82.3 117.3 117.3 117.3 117.3 68.7 68.4 67.7 70.1 10 Nondurable goods.... 110.9 111.2 113.7' 112.9 137.3 137.8 138.2 138.7 80.7 80.7 82.2 81.4 11 Textile, paper, and chemical.. 111.6 111.0 114.1 112.7 136.7 137.0 137.4 137.8 81.7 81.0 83.0 81.8 12 Paper 126.3 121.8 123.8 n.a 136.1 136.2 136.3 n.a 92.8 89.<y 90.8 n.a 13 Chemical 113.2 112.6 114.6 n.a 141.5 142.0 142.6 n.a 80.0 79.3 80.4 n.a 14 Energy materials 105.0 105.2 103.2' 103.2 120.0 120.3 120.6 120.9 87.5 87.5 85.5' 85.4 Previous cycle1 Latest cycle2 1984 1985 High Low High Low Dec. Apr. May June July Aug. Sept.' Oct.' Nov.' Dec. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 81.1 80.8 80.6 80.5 80.2 80.7 80.5 79.8 80.1 80.5 16 Mining 92.8 87.8 95.2 76.9 81.7 82.1 82.2 82.7 81.2 80.9 81.0 80.6 79.2 79.4 17 Utilities 95.6 82.9 88.5 78.0 83.8 84.6 84.5 84.1 81.9 81.5 83.4 82.8 83.1 84.0 18 Manufacturing 87.7 69.9 86.5 68.0 80.9 80.5 80.3 80.1 80.1 80.7 80.1 79.5 79.9 80.3 19 Primary processing ... 91.9 68.3 89.1 65.1 80.9 82.1 81.5 82.0 82.3 82.9 82.8 82.9 83.0 83.4 20 Advanced processing . 86.0 71.1 85.1 69.5 80.8 79.7 79.8 79.3 79.1 79.6 79.0 78.0 78.5 78.9 21 Materials 92.0 70.5 89.1 68.4 81.3 80.9 80.1 80.1 79.5 79.9 79.5 79.2 79.1 79.6 22 Durable goods 91.8 64.4 89.8 60.9 79.7 78.3 76.6 76.5 75.8 76.6 75.4 75.2 75.9 76.2 23 Metal materials 99.2 67.1 93.6 45.7 68.0 69.9 66.2 69.0 66.4 69.4 67.3 69.4 71.0 70.0 24 Nondurable goods .... 91.1 66.7 88.1 70.6 80.8 80.2 80.8 81.0 81.7 82.1 82.9 81.5 81.2 81.7 25 Textile, paper, and chemical 92.8 64.8 89.4 68.6 80.7 80.7 80.9 81.4 82.7 82.8 83.7 81.9 81.4 82.1 26 Paper 98.4 70.6 97.3 79.9 93.7 89.1 88.8 90.5 91.7 90.1 90.7 88.8 90.2 n.a 27 Chemical 92.5 64.4 87.9 63.3 78.3 79.2 79.5 79.2 80.1 79.8 81.2 79.7 79.0 n.a 28 Energy materials 94.6 86.9 94.0 82.2 85.5 87.6 87.5 87.3 85.8 85.1 85.6 86.0 84.6 85.5 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 Grouping por- avg. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. Nov.'' Dec/ Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 121.8 123.3 123.6 123.7 124.0 124.1 124.1 124.3 124.1 125.2 125.1 124.4 125.1 126.0 2 Products 57.72 127.1 129.8 129.6 129.8 130.3 130.8 131.4 131.6 131.6 133.0 133.1 132.0 133.1 133.9 3 Final products 44.77 127.8 130.6 130.4 130.4 130.8 131.3 131.7 131.6 131.8 133.3 133.3 132.0 133.4 134.2 4 Consumer goods 25.52 118.2 119.7 118.8 119.1 119.8 119.5 120.0 120.4 120.1 121.5 121.8 120.7 122.0 123.0 5 Equipment 19.25 140.5 144.9 145.7 145.3 145.4 146.9 147.1 146.6 147.3 149.0 148.6 147.1 148.5 148.9 6 Intermediate products 12.94 124.9 127.3 126.8 127.7 128.6 129.3 130.3 131.4 130.7 132.0 132.3 132.0 132.3 133.2 7 Materials 42.28 114.6 114.6 115.4 115.4 115.5 115.0 114.2 114.3 113.8 114.5 114.2 114.0 114.2 115.1 Consumer goods 8 Durable consumer goods 6.89 112.6 113.1 112.8 112.8 113.5 111.5 111.8 112.0 111.3 114.0 112.9 111.3 114.6 115.5 9 Automotive products 2.98 109.8 111.6 114.2 115.4 115.1 113.1 113.6 113.4 115.0 120.0 117.8 112.9 116.6 117.2 10 Autos and trucks 1.79 103.0 104.7 112.5 111.7 110.5 109.0 109.6 109.4 113.7 120.2 116.6 108.7 113.7 113.9 11 Autos, consumer 1.16 93.2 95.6 102.5 100.7 101.3 100.5 98.1 97.0 101.1 101.3 98.8 92.3 94.9 99.9 12 Trucks, consumer .63 121.2 121.5 131.1 132.0 127.5 124.7 130.9 132.3 137.2 155.4 149.7 139.1 148.6 13 Auto parts and allied goods 1.19 120.1 122.1 116.8 121.1 122.0 119.4 119.6 119.4 116.8 119.6 119.5 119.3 121.0 122. i 14 Home goods 3.91 114.8 114.3 111.6 110.9 112.2 110.2 110.4 110.9 108.4 109.5 109.3 110.1 113.0 114.1 15 Appliances, A/C and TV 1.24 136.2 137.2 126.1 127.1 131.8 126.9 129.3 131.5 121.6 124.5 123.7 126.3 134.2 135.6 16 Appliances and TV 1.19 137.5 138.2 126.6 127.2 131.8 127.1 128.7 131.7 123.2 125.5 125.6 128.6 136.5 17 Carpeting and furniture .96 117.6 114.1 112.7 117.9 117.7 118.1 116.9 119.6 122.2 119.5 120.2 120.1 121.2 18 Miscellaneous home goods 1.71 97.8 97.9 100.6 95.1 95.0 93.7 93.1 91.2 91.2 93.0 92.7 92.9 93.1 19 Nondurable consumer goods 18.63 120.2 122.1 121.1 121.4 122.1 122.5 123.1 123.5 123.4 124.2 125.1 124.1 124.8 125.8 20 Consumer staples 15.29 125.0 127.7 126.6 126.9 127.9 128.5 129.0 129.6 129.3 130.3 131.0 129.8 130.4 131.4 21 Consumer foods and tobacco 7.80 126.2 129.1 127.1 127.8 128.0 129.4 128.9 130.5 130.1 130.8 131.5 129.1 129.5 22 Nonfood staples 7.49 123.9 126.5 126.0 126.0 127.7 127.6 129.1 128.7 128.5 129.7 130.5 130.6 131.4 132.3 23 Consumer chemical products .. 2.75 137.4 142.7 142.9 143.2 145.1 145.1 147.3 145.4 145.4 149.1 151.4 149.4 150.3 24 Consumer paper products 1.88 138.4 141.8 141.2 138.1 141.7 142.0 143.7 144.6 144.9 143.9 144.7 145.5 147.2 25 Consumer energy 2.86 101.4 100.7 99.9 101.5 101.9 101.5 102.1 102.2 101.5 101.8 101.0 102.9 103.1 26 Consumer fuel 1.44 89.3 87.7 85.1 84.9 87.0 90.0 90.2 88.8 89.2 91.1 85.8 90.2 89.4 27 Residential utilities 1.42 113.7 113.9 115.0 118.4 117.1 113.2 114.4 115.9 114.0 112.7 116.5 115.8 Equipment 28 Business and defense equipment 18.01 139.6 143.9 145.5 145.6 146.1 147.7 147.9 147.4 147.9 149.7 149.4 148.1 149.9 150.3 29 Business equipment 14.34 134.9 138.4 140.4 140.0 140.2 142.0 141.9 140.7 141.3 143.0 142.2 140.2 141.9 142.1 30 Construction, mining, and farm .. 2.08 66.6 68.5 68.8 68.3 67.1 68.4 67.4 67.7 68.6 67.2 67.0 65.9 67.7 31 Manufacturing 3.27 109.4 111.5 111.6 112.3 112.0 112.4 113.1 111.9 113.5 115.1 114.8 112.6 113.1 113.4 32 Power 1.27 79.2 84.5 82.5 81.8 79.6 81.8 82.8 84.1 85.6 84.5 85.1 85.5 84.8 85.8 33 Commercial 5.22 209.2 214.5 217.4 217.0 218.9 221.8 222.8 219.6 219.5 222.8 219.4 215.2 218.3 220.0 34 Transit 2.49 98.6 100.9 106.7 104.9 104.5 106.0 102.9 103.4 103.3 106.0 108.3 109.5 110.8 108.3 35 Defense and space equipment 3.67 157.9 165.3 165.3 167.3 169.0 170.1 171.2 173.4 173.9 175.5 177.5 178.9 181.1 182.0 Intermediate products 36 Construction supplies 5.95 114.0 114.7 116.2 115.7 116.9 117.4 118.1 119.2 119.4 121.5 121.3 120.7 121.2 121.9 37 Business supplies 6.99 134.2 138.0 135.9 137.9 138.6 139.4 140.7 141.7 140.3 140.9 141.7 141.6 141.8 38 General business supplies 5.67 137.9 141.4 140.2 141.1 141.9 143.4 144.4 146.1 144.4 145.1 145.4 145.3 145.5 39 Commercial energy products 1.31 118.0 122.9 117.1 124.1 124.5 122.4 124.6 122.7 122.7 122.5 125.7 125.7 125.6 Materials 40 Durable goods materials 20.50 122.3 123.4 124.2 123.3 123.3 122.8 120.7 120.8 120.2 121.8 120.2 120.3 121.8 122.6 41 Durable consumer parts 4.92 98.0 99.8 102.6 102.2 102.1 101.8 100.1 98.7 98.3 100.0 99.0 99.6 100.4 102.6 42 Equipment parts 5.94 164.5 168.8 166.7 164.2 163.3 161. 1 157.8 157.3 157.0 158.7 156.5 154.4 156.0 157.0 43 Durable materials n.e.c 9.64 108.6 107.4 109.1 109.0 109.6 110.0 108.2 109.6 108.6 110.2 108.7 109.9 111.8 111.6 44 Basic metal materials 4.64 86.4 84.0 83.5 84.1 85.1 86.6 82.0 85.0 82.5 85.1 82.8 85.7 88.0 45 Nondurable goods materials 10.09 111.2 110.7 110.9 111.4 110.3 110.4 111.3 111.8 112.8 113.5 114.7 112.9 112.6 113.4 46 Textile, paper, and chemical materials 7.53 111.6 110.1 111.5 112.1 111.3 110.5 110.9 111.7 113.5 113.8 115.1 112.7 112.1 113.2 47 Textile materials 1.52 101.5 91.2 90.3 93.5 93.0 94.1 95.0 97.3 100.2 104.4 104.1 100.9 98.1 48 Pulp and paper materials 1.55 126.5 127.2 127.5 126.0 125.4 121.3 120.9 123.3 125.0 122.8 123.7 121.1 123.1 49 Chemical materials 4.46 109.9 110.6 113.3 113.5 112.7 112.3 112.9 112.6 114.0 113.8 115.9 113.9 113.1 50 Miscellaneous nondurable materials 2.57 109.8 112.1 109.2 109.4 107.2 110.1 112.5 112.0 110.8 112.7 113.5 113.3 113.8 51 Energy materials 11.69 104.0 102.4 103.9 104.9 106.2 105.3 105.3 105.1 103.5 102.7 103.4 103.9 102.3 103.5 52 Primary energy 7.57 107.5 106.0 107.0 107.6 110.2 107.9 107.8 109.0 107.4 106.4 106.8 107.7 106.1 53 Converted fuel materials 4.12 97.6 96.0 98.2 100.0 99.0 100.6 100.6 98.1 96.2 95.9 97.0 97.0 95.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued 1977 1984 1985 Grouping c S o I d C e p p o ro r - - a 1 v 98 g 4 . tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. Nov.f Dec Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 110.9 109.9 111.4 111.9 111.8 111.1 111.3 111.6 109.4 109.1 110.3 109.7 2 Mining 9.83 110.9 108.9 110.5 109.5 110.5 109.6 109.8 110.6 108.7 108.3 108.4 108.0 3 Utilities 5.96 110.9 111.6 113.0 115.8 113.9 113.6 113.7 113.4 110.7 110.3 113.2 112.6 4 Manufacturing 84.21 123.9 125.8 125.9 125.8 126.3 126.6 126.6 126.7 126.9 128.2 127.7 127.1 5 Nondurable 35.11 122.5 123.4 123.2 123.8 123.9 124.3 124.7 125.5 125.6 126.6 126.9 126.1 6 Durable 49.10 124.8 127.4 127.8 127.2 128.0 128.2 127.9 127.6 127.9 129.4 128.3 127.8 Mining 7 Metal 10 .50 77.0 69.3 70.5 74.5 83.6 81.2 78.3 77.5 60.9 73.1 71.4 74.1 8 Coal 11.12 1.60 127.6 116.2 118.5 121.5 131.9 128.5 128.7 134.0 128.0 127.7 126.3 130.1 9 Oil and gas extraction 13 7.07 109.1 109.8 110.7 108.2 106.8 106.5 106.9 106.9 106.9 105.5 106.0 104.3 10 Stone and earth minerals 14 .66 116.1 113.2 118.5 119.8 118.7 118.5 118.7 117.9 116.6 117.7 119.3 119.6 Nondurable manufactures 11 Foods 7.96 127.1 129.0 128.2 129.4 128.5 130.8 131.4 131.8 132.2 132.6 132.5 131.0 12 Tobacco products .62 100.7 107.4 97.2 103.8 103.4 98.4 95.7 98.9 96.0 97.7 97.8 97.7 13 Textile mill products 2.29 103.7 94.7 93.6 98.5 99.4 99.0 100.0 103.3 104.1 106.3 106.7 104.7 14 Apparel products 2.79 102.8 102.5 102.6 103.1 101.3 100.2 100.3 99.2 100.6 100.4 101.8 102.6 15 Paper and products 3.15 127.3 128.8 128.3 126.4 126.9 125.1 124.1 127.1 129.0 127.5 128.6 127.3 16 Printing and publishing 4.54 147.9 151.2 150.4 150.3 152.6 154.2 155.4 156.7 154.3 156.3 156.2 156.1 17 Chemicals and products 8.05 121.7 123.4 125.7 125.8 126.5 125.8 126.7 126.4 126.4 128.2 129.0 127.5 18 Petroleum products 2.40 87.4 84.7 84.1 84.0 84.7 87.3 87.4 87.1 88.3 88.2 85.9 87.7 19 Rubber and plastic products 2.80 143.2 146.6 145.9 145.7 144.1 144.9 144.3 145.5 145.6 148.0 148.6 148.7 20 Leather and products .53 76.7 71.4 69.1 69.2 69.4 69.9 71.0 71.5 72.2 72.7 72.3 71.4 Durable manufactures 21 Lumber and products 24 2.30 109.1 109.4 109.2 109.1 109.5 110.9 112.2 113.5 113.0 114.8 115.9 116.5 22 Furniture and fixtures 25 1.27 136.7 138.0 136.5 139.0 139.2 141.0 142.0 141.9 145.3 144.3 143.2 141.9 23 Clay, glass, stone products 32 2.72 112.3 111.8 112.7 110.5 111.4 114.5 116.3 116.1 115.1 116.2 116.2 115.6 24 Primary metals 33 5.33 82.4 78.4 81.7 80.2 81.8 81.4 76.4 78.3 79.0 82.0 80.3 83.0 25 Iron and steel 331.2 3.49 73.5 68.9 71.0 68.5 73.2 71.9 65.4 67.6 68.7 71.6 69.7 74.4 26 Fabricated metal products 34 6.46 102.8 105.9 106.4 107.6 108.6 109.1 108.3 107.4 107.3 107.8 107.5 108.4 27 Nonelectrical machinery 35 9.54 142.0 144.6 145.0 144.9 146.5 148.9 149.1 145.6 147.5 149.2 146.5 143.5 28 Electrical machinery 36 7.15 172.4 180.2 176.0 173.2 173.1 168.9 169.3 169.5 165.7 166.1 165.1 164.8 29 Transportation equipment 37 9.13 113.6 117.8 120.4 120.5 120.8 120.7 120.9 121.8 123.7 126.8 126.2 124.6 30 Motor vehicles and parts 371 5.25 105.6 109.5 113.0 112.5 111.3 110.9 110.5 110.5 112.8 116.8 115.3 111.7 31 Aerospace and miscellaneous transportation equipment. 372-6.9 3.87 124.4 129.0 130.5 131.4 133.7 134.1 134.9 137.1 138.5 140.4 141.1 142.0 32 Instruments 38 2.66 136.9 138.9 138.7 138.7 139.0 138.5 139.9 140.7 141.1 141.8 139.4 139.8 33 Miscellaneous manufactures 39 1.46 98.0 97.2 99.0 96.4 96.0 98.3 98.3 96.8 95.9 97.2 96.4 95.9 Utilities 34 Electric 120.6 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 35 Products, total 596.0 745.6 756.5 761.3 764.2 769.5 773.3 774.4 773.4 769.0 778.7 777.9 773.0 780.9 36 Final 472.7 593.7 601.8 606.5 608.7 613.3 616.2 616.2 613.9 610.1 618.6 617.8 613.7 620.7 37 Consumer goods 309.2 356.5 360.0 358.8 360.9 364.6 364.7 365.1 364.0 361.7 366.2 365.6 363.6 368.4 38 Equipment 163.5 237.6 242.3 247.6 247.8 248.7 251.4 251.1 249.9 248.4 252.4 252.2 250.1 252.3 39 Intermediate 123.3 151.8 154.6 154.9 155.5 156.3 157.1 158.2 159.5 158.9 160.1 160.1 159.9 160.2 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. 1985 IItteemm 11998822 11998833 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,000 1,605 1,682 1,624 1,741 1,704 1,778 1,712 1,694 1,784 1,808 1,688 1,661 7 1-family 546 902 922 927 993 948 933 961 967 990 949 965 918 3 2-or-more-family 454 703 759 697 748 756 845 751 727 794 859 723 743 4 Started 1,062 1,703 1,749 1,662 1,785 1,824 1,883 1,834 1,976 1,945 2,052 2,042 2,051 5 1-family 663 1,067 1,084 1,135 1,168 1,155 1,039 1,031 1,062 1,059 975 1,120' 961 6 2-or-more-family 400 635 665 512 721 778 642 670 601 681 641 652' 605 7 Under construction, end of period1 720 1,003 1,051 1,066 1,063 1,088 1,089 1,075 1,073 1,084 1,063 1,089r 1,085 8 1-family 400 524 556 580 578 583 582 575 578 583 567 577' 572 9 2-or-more-family 320 479 494 485 485 505 507 500 495 502 496r 513r 513 10 Completed 1,005 1,390 1,652 1,794 1,685 1,641 1,627 1,789 1,725 1,721 1,793' 1,527' 1,645 11 1-family 631 924 1,025 1,082 1,043 1,074 1,020 1,097 1,048 1,019 1,110 1,062' 1,052 12 2-or-more-family 374 466 627 712 642 567 607 692 677 702 683r 465' 593 13 Mobile homes shipped 240 296 295 276 283 287 287 270 286 290 278 298 291 Merchant builder activity in 1-family units 14 Number sold 413 622 639 676 699 649 682 710 748 770088 676 662233 671 15 Number for sale, end of period1 255 304 358 360 357 356 356 354 351 348 350 355 357 Price (thousands of dollars)2 Median 16 Units sold 69.3 75.5 80.0 82.0 84.2 85.6 80.1 86.3 82.1 83.3 8844..77 85.5 84.7 17 Units sold 83.8 89.9 97.5 96.2 100.9 104.7 98.1 99.6 99.4 99.2 103.2 102.4 102.5 EXISTING UNITS (1-family) 18 Number sold 1,991 2,719 2,868 2,880 3,030 3,040 3,040 3,060 3,140 3,500 3,450 3,550 3,420 Price of units sold (thousands of dollars)1 19 Median 67.7 69.8 72.3 73.5 74.2 7744..55 7755..00 7766..22 7777..44 7766..99 7755..55 7744..88 7744..66 20 Average 80.4 82.5 85.9 87.2 88.6 89.7 90.1 91.5 93.5 93.0 91.1 90.8 90.0 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 236,935 268,730 312,989 334,254 333,723 341,861 339,943 343,837 344,206 343,246 346,084 346,290 348,186 ?n? Pri R v e a s te id ential 1 8 8 0 6 , , 6 0 0 9 9 1 2 1 1 2 8 1 , , 0 3 1 0 6 9 2 1 5 4 7 5 , , 8 0 0 5 2 8 2 1 7 4 6 6 , , 4 0 5 4 2 2 2 1 7 4 4 6 , , 5 1 7 9 5 5 2 1 8 4 1 6 , , 9 5 8 3 8 9 2 1 7 4 6 2 , , 4 2 2 5 0 4 2 1 7 4 8 7 , , 9 1 3 5 9 8 2 1 7 4 9 8 , , 5 6 2 9 1 9 2 1 7 4 9 6 , , 3 8 7 5 1 8 2 1 8 4 2 8 , , 5 9 0 1 5 5 2 1 8 5 2 0 , , 6 5 8 9 3 6 2 1 8 5 3 0 , , 6 2 6 9 8 7 24 Nonresidential, total 105,482 96,707 112,744 130,410 128,380 135,449 134,166 131,781 130,822 132,513 133,590 132,087 133,371 Buildings 75 Industrial 17,346 12,863 13,746 15,815 14,585 17,283 16,443 15,170 15,384 15,118 15,567 15,429 15,532 76 Commercial 37,281 35,787 48,102 58,922 59,382 61,219 60,064 58,290 57,956 59,910 61,227 60,820 61,544 77 Other 10,507 11,660 12,298 12,054 11,245 12,663 12,929 12,786 12,578 12,957 12,769 12,249 12,722 28 Public utilities and other 40,348 36,397 38,598 43,619 43,168 44,284 44,730 45,535 44,904 44,528 44,027 43,589 43,573 79 Public 50,843 50,715 55,186 57,802 59,148 59,873 63,523 64,897 64,686 63,875 63,580 63,606 64,518 30 Military 2,205 2,544 2,839 3,036 3,078 3,166 3,349 3,426 3,364 2,966 3,008 3,354 2,947 31 Highway 13,293 14,143 16,295 18,416 19,176 19,920 22,314 21,093 19,589 20,224 19,585 19,180 19,844 3? Conservation and development 5,029 4,822 4,656 4,674 4,727 4,393 5,051 5,410 5,075 4,824 5,254 4,921 5,564 33 Other 30,316 29,206 31,396 31,676 32,167 32,394 32,809 34,968 36,658 35,861 35,733 36,151 36,163 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of comparable with data in prior periods because of changes by the Bureau of the existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from originating agency. Permit authoriza- Construction Reports (C-30-76-5), issued by the Bureau in July 1976. tions are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier Change from 1 month earlier months earlier (at annual rate) IIInnndddeeexxx llleeevvveeelll IIIttteeemmm DDDeeeccc... 1985 1985 111999888555 11998844 11998855 (((111999666777 DDeecc.. DDeecc.. === 111000000)))111 Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 1 All items 4.0 3.8 4.1 3.3 2.3 5.3 .2 .2 .3 .6 .4 327.4 2 Food 3.8 2.7 2.6 -.9 1.8 7.0 .0 .3 .2 .7 .8 313.2 3 Energy items .2 1.8 -.8 9.6 -4.3 3.3 -.6 -.2 -.8 .9 .7 426.5 4 All items less food and energy 4.7 4.4 5.5 3.4 3.5 5.2 .3 .2 .5 .4 .3 320.7 5 Commodities 3.1 2.1 6.6 -1.4 .8 2.8 .1 .3 .4 .2 .1 262.2 6 Services 5.6 5.7 5.0 6.4 5.0 6.6 .5 .2 .6 .6 .4 385.8 PRODUCER PRICES 7 Finished goods 1.7 1.8 .5 1.7 -2.4 8.5 -.3 -.6 .9 .8 .4 297.2 8 Consumer foods 3.5 .3 -3.0 -8.1 -1.6 16.0 -.7' 1.4 1.6 .8 274.4 9 Consumer energy -4.1 .0 -21.3 27.3 -12.8 20.2 -1.7 -.2' -.2 3.1 1.8 736.1 10 Other consumer goods 2.2 2.7 6.5 1.4 -.2 3.4 .0 -.6' .8 .1 .0 254.7 11 Capital equipment 1.8 2.7 6.2 1.6 -1.2 4.2 ,3R -.6 1.0 .1 -.1 303.5 12 Intermediate materials3 1.7 -.1 -2.5 1.1 -1.2 2.6 ,<y .(K .0 .2 .4 325.2 13 Excluding energy 2.1 -.2 -1.0 1.2 -1.2 .4 .<Y -.2' .0 .0 .1 304.2 Crude materials 14 Foods -1.2 -6.4 -24.9 -20.4 -19.9 61.4 -3.8' -.5' 6.3 5.8 .2 236.8 15 Energy -1.3 -4.3 -13.1 4.4 -4.7 -3.1 -1.3' .3' -.3 -.1 -.5 739.5 16 Other -3.3 -4.5 -13.3 3.1 -4.2 -2.7 -1.2 -.6 .5 -.2 -1.0 242.6 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 11998833 11998844 11998855 Q4 Q1 Q2 Q3 Q4 GROSS NATIONAL PRODUCT 1 Total 3,401.6 3,774.7 3,992.5 3,852.5 3,917.5 3,960.6 4,016.9 4,075.1 By source 2 Personal consumption expenditures 2,229.3 2,423.0 2,581.9 2,480.1 2,525.0 2,563.3 2,606.1 2,633.3 3 Durable goods 289.6 331.1 360.8 341.5 351.5 356.5 376.0 359.2 4 Nondurable goods 817.0 872.4 912.5 883.1 895.7 910.2 914.5 929.4 5 Services 1,122.7 1,219.6 1,308.6 1,255.4 1,277.8 1,296.6 1,315.6 1,344.6 6 Gross private domestic investment 501.9 674.0 670.4 676.2 657.6 672.8 666.1 685.2 7 Fixed investment 508.3 607.0 661.4 637.2 639.1 657.3 665.9 683.2 8 Nonresidential 356.3 427.9 475.7 458.1 459.6 474.2 478.5 490.6 9 Structures 126.1 147.6 170.0 157.2 166.1 169.7 170.4 173.7 10 Producers' durable equipment 230.2 280.2 305.8 300.9 293.5 304.5 308.1 316.9 11 Residential structures 152.0 179.1 185.6 179.1 179.4 183.1 187.4 192.5 12 Change in business inventories -6.4 67.1 9.1 39.0 18.5 15.5 .2 2.1 13 Nonfarm .8 58.0 11.4 36.4 14.2 10.8 3.1 17.6 14 Net exports of goods and services -5.3 -59.2 -74.4 -72.2 -42.3 -70.3 -87.8 -97.2 15 Exports 354.1 384.6 370.4 389.5 379.6 369.2 363.2 369.7 16 Imports 359.4 443.8 444.8 461.7 421.9 439.5 451.0 466.9 17 Government purchases of goods and services... 675.7 736.8 814.6 768.4 777.2 794.8 832.5 853.7 18 Federal 284.8 312.9 353.9 332.9 334.4 337.8 364.8 378.6 19 State and local 390.9 423.9 460.7 435.5 442.8 457.1 467.7 475.2 By major type of product 20 Final sales, total 3,408.0 3,707.6 3,983.4 3.813.5 3,899.0 3.945.0 4,016.7 4,073.0 21 Goods 1,394.7' 1,585.9^ 1,644.2 1,604.1' 1,628.3 1.636.1 1,650.7 1,661.8 22 Durable 572.3' 679.5' 712.4 701.9' 706.2 705.9 714.8 722.8 23 Nondurable 822.4' 906.3' 931.8 902.2' 922.1 930.2 935.9 939.0 24 Services 1,678.0 1,806.6 1,928.8 1.855.6 1,887.6 1.908.2 1,939.9 1,979.4 25 Structures 328.9 382.2 419.5 392.9 401.5 416.3 426.2 433.9 26 Change in business inventories -6.4 67.1 9.1 39.0 18.5 15.5 .2 2.1 27 Durable goods -.8 37.0 7.8 29.3 16.9 1.8 -6.4 19.1 28 Nondurable goods -5.5 30.1 1.2 9.7 1.6 13.7 6.6 -17.0 29 MEMO: Total GNP in 1982 dollars 3,275.2 3,492.0 3,573.5 3,515.6 3,547.8 3,557.4 3,584.1 3,605.0 NATIONAL INCOME 30 Total 2,718.3 3,039.3 3,214.4 3,104.4 3,155.3 3,192.2 3,228.0 n.a. 31 Compensation of employees 2,025.9 2,221.3 2,372.7 2,278.5 2,320.4 2,356.9 2,385.2 2,428.1 32 Wages and salaries 1,675.4 1,835.2 1,960.5 1,884.4 1,917.7 1,947.6 1,970.1 2,006.5 33 Government and government enterprises... 324.2 346.1 370.8 354.7 362.6 367.4 372.6 379.7 34 Other 1,351.6 1,488.9 1,589.9 1,529.8 1,555.1 1,580.2 1,597.5 1,626.7 35 Supplement to wages and salaries 350.5 386.2 412.2 394.0 402.7 409.4 415.1 421.6 36 Employer contributions for social insurance 171.0 192.8 205.8 196.8 201.8 204.6 206.7 210.2 37 Other labor income 179.5 193.4 206.4 197.2 200.9 204.8 208.4 211.5 38 Proprietors' income1 192.3 233.7 242.4 232.9 239.4 240.9 237.5 251.6 39 Business and professional1 178.0 201.6 221.3 , 206.3 212.9 218.1 225.3 229.1 40 Farm1 14.3 32.1 21.0 26.6 26.5 22.8 12.2 22.5 41 Rental income of persons2 12.8 10.8 14.0 9.7 11.0 13.8 14.5 16.5 42 Corporate profits1 213.8 273.3 297.8 276.2 281.7 288.1 309.1 n.a. 43 Profits before tax3 205.0 237.6 226.3 228.0 220.0 218.7 228.6 n.a. 44 Inventory valuation adjustment -10.0 -5.4 -.4 -1.6 .7 2.2 4.7 -9.0 45 Capital consumption adjustment 18.8 41.0 71.8 49.8 61.1 67.2 75.9 83.2 46 Net interest 273.6 300.2 287.7 307.0 302.9 292.4 281.8 273.7 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1986 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1984 1985 Account 1983 1984 1985 Q4 Q1 Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 2,836.4 3,111.9 3,294.2 3,186.2 3,240.9 3,280.1 3,298.5 2 Wage and salary disbursements 1,675.8 1,834.9 1,960.7 1,883.9 1,917.6 1.948.6 1.970.1 3 Commodity-producing industries 523.0 577.9 607.2 591.2 600.1 604.7 607.6 4 Manufacturing 397.4 438.9 457.5 449.0 453.5 454.9 457.2 5 Distributive industries 404.2 441.6 468.8 453.0 459.8 467.4 471.2 6 Service industries 424.4 469.4 513.9 485.5 495.2 508.1 518.7 7 Government and government enterprises 324.2 346.1 370.8 354.1 362.5 368.4 372.6 8 Other labor income 179.5 193.4 206.4 197.2 200.9 204.8 208.4 9 Proprietors' income1 192.3 233.7 242.4 232.9 239.4 240.9 237.5 10 Business and professional1 178.0 201.6 221.3 206.3 212.9 218.1 225.3 11 Farm1 14.3 32.1 21.0 26.6 26.5 22.8 12.2 12 Rental income of persons2 12.8 10.8 14.0 9.7 11.0 13.8 14.5 13 Dividends 68.0 74.6 78.9 76.9 77.9 78.7 79.1 14 Personal interest income 385.7 442.2 456.5 461.3 462.8 460.5 450.6 15 Transfer payments 442.2 454.7 484.5 459.2 477.6 481.0 488.1 16 Old-age survivors, disability, and health insurance benefits.. 221.7 235.7 249.2 250.7 256.5 253.4 241.8 17 LESS: Personal contributions for social insurance 119.8 132.4 146.3 148.3 149.7 149.1 134.9 18 EQUALS: Personal income 2,836.4 3,111.9 3,294.2 3,186.2 3,240.9 3,280.1 3.298.5 19 LESS: Personal tax and nontax payments 411.1 441.8 493.1 462.4 501.7 462.4 498.2 20 EQUALS: Disposable personal income 2,425.4 2,670.2 2,801.1 2,723.8 2,739.2 2.817.7 2.800.2 21 LESS: Personal outlays 2,292.2 2,497.7 2,671.4 2,559.4 2,608.4 2,650.6 2.697.6 22 EQUALS: Personal saving 133.2 172.5 129.7 164.5 130.9 167.2 102.6 MEMO Per capita (1982 dollars) 23 Gross national product 13,962.0 14,750.9 14,961.3 14,797.2 14,902.6 14,915.5 14,988.3 24 Personal consumption expenditures 9,147.8' 9,461.8 9,682.2 9,520.8 9,613.3 9,658.1 9,742.1 25 Disposable personal income 9,952.0 10,427.0 10,504.0 10,457.0 10,429.0 10,617.0 10,468.0 26 Saving rate (percent) 5.5 6.5 4.6 6.0 4.8 5.9 3.7 GROSS SAVING 27 Gross saving. 469.8 584.5 558.7 573.5 578.3 571.7 537.3 28 Gross private saving 600.6 693.0 696.4 700.3 677.7 723.6 681.8 29 Personal saving 133.2 172.5 129.7 164.5 130.9 167.2 102.6 30 Undistributed corporate profits1 67.9 101.6 128.5 108.2 116.3 122.6 137.8 31 Corporate inventory valuation adjustment -10.0 -5.4 -.4 -1.6 .7 2.2 4.7 Capital consumption allowances 32 Corporate 245.0 256.6 269.2 261.8 264.3 266.8 270.9 33 Noncorporate 154.6 162.3 169.1 165.9 166.3 167.0 170.5 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -130.8 -108.5 -137.8 -126.8 -99.4 -151.9 -144.5 36 Federal -179.4 -172.9 -196.0 -192.7 -162.6 -209.1 -201.3 37 State and local 48.6 64.4 58.3 65.8 63.2 57.3 56.9 38 Capital grants received by the United States, net .0 .0 .0 .0 .0 .0 .0 39 Gross investment 469.2 583.0 559.4 565.8 580.8' 567.0 539.9 40 Gross private domestic 501.9 674.0 670.4 676.2 657.6 672.8 666.1 41 Net foreign -32.7 -91.0 -111.0 -110.4 -76.8 -105.8 -126.2 42 Statistical discrepancy. -.6 -1.5 -7.6 2.5 -4.7 2.5 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 Item credits or debits 1982 1983 Q3 Q4 Q1 Q2 Q3" 1 Balance on current account -8,051 -45,994 -107,358 -28,969 -31,805 -24,247 -27,696 -30,451 2 Not seasonally adjusted.. -32,297 -28,982 -23,417 -27,927 -34,087 3 Merchandise trade balance2 ... -36,444 -67,216 -114,107 -28,977 -30,885 -23,454 -28,587 -33,142 4 Merchandise exports 211,198 201,712 219,916 55,649 56,242 55,302 53,624 52,310 5 Merchandise imports -247,642 -268,928 -334,023 -84,626 -87,127 -78,756 -82,211 -85,452 6 Military transactions, net -318 -163 -1,765 -250 -575 -212 -586 -487 7 Investment income, net3 29,493 25,401 19,109 3,256 4,003 2,537 5,387 7,549 8 Other service transactions, net. 7,353 4,837 819 -122 -253 54 -482 -403 9 Remittances, pensions, and other transfers -2,633 -2,566 -2,891 -669 -782 -934 -843 -849 10 U.S. government grants (excluding military) -5,501 -6,287 -8,522 -2,207 -3,313 -2,238 -2,585 -3,119 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -6,131 -5,006 -5,516 -1,369 -734 -850 -853 -420 12 Change in U.S. official reserve assets (increase, -) -4,965 -1,196 -3,130 -799 -1,109 -233 -356 -121 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -1,371 -66 -979 -271 -194 -264 -180 -264 15 Reserve position in International Monetary Fund -2,552 -4,434 -995 -331 -143 281 72 388 16 Foreign currencies -1,041 3,304 -1,156 -197 -772 -250 -248 -245 17 Change in U.S. private assets abroad (increase, -)3. -108,121 -48,842 -11,800 20,532 -13,003 718 -1,246 -9,458 18 Bank-reported claims -111,070 -29,928 -8,504 17,725 -4,933 135 4,095 -1,408 19 Nonbank-reported claims 6,626 -6,513 6,266 2,099 970 1,201 1,863 n.a. 20 U.S. purchase of foreign securities, net -8,102 -7,007 -5,059 -1,313 -3,663 -2,494 -2,214 -1,787 21 U.S. direct investments abroad, net3 4,425 -5,394 -4,503 2,021 -5,377 1,876 -4,990 -6,263 22 Change in foreign official assets in the United States (increase, +) 3,672 5,795 3,424 -686 7,119 -11,204 8,465 2,415 23 U.S. Treasury securities 5,779 6,972 4,690 -575 5,814 -7,219 8,722 -90 24 Other U.S. government obligations -694 -476 167 85 -67 -307 136 24 25 Other U.S. government liabilities4 684 552 453 -139 -197 -462 575 -95 26 Other U.S. liabilities reported by U.S. banks -1,747 545 663 430 2,052 -3,099 -134 2,954 27 Other foreign official assets5. -350 -1,798 -2,549 -487 -483 -117 -834 -378 28 Change in foreign private assets in the United States (increase, +)3 90,775 78,527 93,895 3,825 26,191 24,915 17,849 31,494 29 U.S. bank-reported liabilities 65,922 49,341 31,674 -5,125 4,481 13,345 195 6,452 30 U.S. nonbank-reported liabilities -2,383 -118 4,284 -2,939 -1,863 -2,655 -1,324 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 7,052 8,721 22,440 5,058 9,501 2,633 5,106 7,824 32 Foreign purchases of other U.S. securities, net 6,392 8,636 12,983 1,603 9,380 9,510 7,135 11,641 33 Foreign direct investments in the United States, net3 13,792 11,947 22,514 5,228 4,692 2,082 6,737 5,577 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 32,821 16,717 30,486 7,466 13,341 10,901 3,837 6,541 36 Owing to seasonal adjustments -3,274 4,305 -384 -570 -3,487 37 Statistical discrepancy in recorded data before seasonal adjustment 32,821 16,717 30,486 9,036 11,285 4,407 10,028 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -4,965 -1,196 -3,130 -799 -1,110 -233 -356 -121 39 Foreign official assets in the United States (increase, +) 2,988 5,243 2,971 -547 7,316 -10,742 7,890 2,510 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 -453 812 -2,021 -1,960 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 585 194 190 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 • March 1986 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1985 IItteemm 11998822 11998833 11998844 May June July Aug. Sept. Oct. Nov. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 212,193 200,486 217,865 17,414 17,438 17,411 17,423 17,732 17,368 17,976 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 243,952 258,048 325,726 28,685 29,425 26,630 26,083 31,764 27,594 30,285 3 Trade balance -31,759 -57,562 107,861 -11,271 -11,987 -9,219 -8,660 -14,032 -10,226 -12,310 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 June July Aug. Sept. Oct. Nov. Dec. 1 Total 33,958 33,747 34,934 36,088 37,071 37,154 38,295 41,657 42,852 43,191 2 Gold stock, including Exchange Stabilization Fund1 11,148 11,121 11,096 11,091 11,090 11,090 11,090 11,090 11,090 11,090 3 Special drawing rights2,3 5,250 5,025 5,641 \ 6,196 6,510 6,692 6,847 6,926 7,253 7,293 4 Reserve position in International Monetary Fund2 7,348 11,312 11,541 11,394 11,513 11,478 11,686 11,843 11,955 11,952 5 Foreign currencies4 10,212 6,289 6,656 7,408 7,958 7,894 8,672 11,798 12,554 12,856 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 June July Aug. Sept. Oct. Nov. Dec. 1 Deposits 328 190 253 310 274 223 535 267 340 480 Assets held in custody 2 U.S. Treasury securities1 112,544 117,670 118,267 121,755 124,400 123,321 120,978 118,000 117,814 121,004 3 Earmarked gold2 14,716 14,414 14,265 14,262 14,251 14,251 14,245 14,242 14,240 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 May June' July Aug/ Sept. Oct. Nov.^ All foreign countries 1 Total, all currencies 469,712 477,090 453,656 459,991 458,244 464,002 457,554 456,405 454,216 455,532 7 Claims on United States 91,805 115,542 113,449 121,125 121,267 119,379 122,925 119,431 121,702 115,479 Parent bank 61,666 82,026 78,165 85,595 85,259 84,033 86,779 85,447 87,291 82,379 4 Other banks in United States2 1 13,664 14,098 14,457 14,737 14,051 13,129 12,655 11,924 5 Nonbanks2 21,620 21,432 21,551 20,609 22,095 20,855 21,756 21,176 6 Claims on foreigners 358,493 342,689 320,106 318,126 316,048 322,720 313,037 314,717 310,412 317,355 7 Other branches of parent bank 91,168 96,004 95,128 91,390 89,826 91,167 89,634 87,658 86,876 89,530 8 Banks 133,752 117,668 100,397 102,238 101,481 104,785 99,005 102,135 98,465 102,285 9 Public borrowers 24,131 24,517 23,343 23,193 23,037 23,110 22,859 23,277 23,512 24,128 10 Nonbank foreigners 109,442 107,785 101,238 101,307 101,704 103,658 101,539 101,647 101,559 101,412 11 Other assets 19,414 18,859 20,101 20,738 20,929 21,903 21,592 22,257 22,102 22,698 12 Total payable in U.S. dollars 361,982 371,508 350,636 351,180 350,135 346,112 341,872 335,021 331,299 329,220 n Claims on United States 90,085 113,436 111,482 118,670 118,709 116,408 120,177 116,535 118,526 112,311 14 Parent bank 61,010 80,909 77,285 84,626 84,273 82,883 85,850 84,236 86,137 81,212 15 Other banks in United States2 13,500 13,702 14,015 14,113 13,444 12,568 12,105 11,291 16 Nonbanks2 20,697 20,342 20,421 19,412 20,883 19,731 20,284 19,808 17 Claims on foreigners 259,871 247,406 228,544 222,526 221,443 219,7% 211,987 208,664 202,808 206,970 18 Other branches of parent bank 73,537 78,431 78,690 75,631 74,586 74,466 72,431 69,226 68,540 70,499 19 Banks 106,447 93,332 76,940 75,632 75,316 75,312 70,946 70,890 67,244 69,027 70 Public borrowers 18,413 17,890 17,626 17,394 17,206 17,019 17,033 17,274 17,320 17,643 21 Nonbank foreigners 61,474 60,977 55,288 53,869 54,335 52,999 51,577 51,274 49,704 49,801 22 Other assets 12,026 10,666 10,610 9,984 9,983 9,908 9,708 9,822 9,%5 9,939 United Kingdom 23 Total, ail currencies 161,067 158,732 144,385 148,860 149,600 151,456 151,118 150,276 149,607 152,456 74 Claims on United States 27,354 34,433 27,731 30,314 31,322 31,140 35,300 32,635 33,852 33,824 75 Parent bank 23,017 29,111 21,918 23,554 23,930 24,368 28,200 25,813 26,992 26,768 76 Other banks in United States2 1,429 1,613 1,691 1,525 1,474 1,334' 1,269 1,289 77 Nonbanks2 4,384 5,147 5,701 5,247 5,626 5,488 5,591 5,767 78 Claims on foreigners 127,734 119,280 111,772 113,396 113,185 114,822 110,469 112,514 110,435 112,961 79 Other branches of parent bank 37,000 36,565 37,897 34,515 34,181 33,534 32,610 32,403 32,074 30,550 30 Banks 50,767 43,352 37,443 39,905 39,850 40,546 37,7% 40,504' 37,858 40,001 31 Public borrowers 6,240 5,898 5,334 4,932 4,973 5,056 5,054 5,112 5,628 6,362 32 Nonbank foreigners 33,727 33,465 31,098 34,044 34,181 35,686 35,009 34,495 34,875 36,048 33 Other assets 5,979 5,019 4,882 5,150 5,093 5,494 5,349 5,127 5,320 5,671 34 Total payable in U.S. dollars 123,740 126,012 112,809 111,880 112,687 110,452 110,973 108,731 108,024 108,699 35 Claims on United States 26,761 33,756 26,924 29,389 30,368 30,087 34,251 31,520 32,605 32,603 36 Parent bank 22,756 28,756 21,551 23,261 23,625 23,995 27,897 25,342 26,531 26,260 37 Other banks in United States2 1 1,363 1,488 1,604 1,415 1,355 1,247 1,194 1,205 38 Nonbanks2 4,010 4,640 5,139 4,677 4,999 4,931 4,880 5,138 39 Claims on foreigners 92,228 88,917 82,889 79,596 79,457 77,441 73,763 74,286 72,287 72,792 40 Other branches of parent bank 31,648 31,838 33,551 29,797 29,357 28,618 26,987 26,581 26,683 24,939 41 Banks 36,717 32,188 26,805 27,184 27,317 26,349 24,382 25,458 23,888 25,189 47 Public borrowers 4,329 4,194 4,030 3,500 3,587 3,538 3,599 3,633 3,966 4,460 43 Nonbank foreigners 19,534 20,697 18,503 19,115 19,1% 18,936 18,795 18,614 17,750 18,204 44 Other assets 4,751 3,339 2,996 2,895 2,862 2,924 2,959 2,925 3,132 3,304 Bahamas and Caymans 45 Total, all currencies 145,156 152,083 146,811 144,033 143,549 140,786 138,510 135,214 134,951 133,274 46 Claims on United States 59,403 75,309 77,296 78,834 78,032 75,261 74,441 72,634 73,432 69,765 47 Parent bank 34,653 48,720 49,449 51,872 51,158 48,657 47,815 47,299 47,918 45,811 48 Other banks in United States2 11,544 11,720 11,995 12,379 11,718 11,009 10,659 9,910 49 Nonbanks2 16,303 15,242 14,879 14,225 14,908 14,326 14,855 14,044 50 Claims on foreigners 81,450 72,868 65,598 61,576 61,933 62,185 60,934 59,277 58,302 60,296 51 Other branches of parent bank 18,720 20,626 17,661 15,268 15,645 15,669 16,479 15,428 15,856 17,050 57 Banks 42,699 36,842 30,246 28,868 28,482 29,212 27,574 26,964 25,761 26,627 53 Public borrowers 6,413 6,093 6,089 6,669 6,628 6,491 6,428 6,486 6,305 6,328 54 Nonbank foreigners 13,618 12,592 11,602 10,771 11,178 10,813 10,453 10,399 10,380 10,291 55 Other assets 4,303 3,906 3,917 3,623 3,584 3,340 3,135 3,303 3,217 3,213 56 Total payable in U.S. dollars 139,605 145,641 141,562 138,720 138,579 135,474 133,521 129,830 129,476 127,626 1. Beginning with June 1984 data, reported claims held by foreign branches 2. Data for assets vis-a-vis other banks in the United States and vis-i-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 • March 1986 3.14 Continued 1985 May' June' July' Aug/ Sept. Oct. NOV.p All foreign countries 57 Total, all currencies 469,712 477,090 453,656 459,991 458,244 464,002 457,554 456,405 454,216 455,532 58 Negotiable CDs3 n.a. n.a. 37,725 37,755 37,946 37,679 37,880 39,676 38,044 36,607 59 To United States 179,015 188,070 147,583 145,591 147,386 146,374 144,390 143,252' 139,832 142,796 60 Parent bank 75,621 81,261 78,739 78,410 79,819 80,650 77,472 78,415 75,236 80,857 61 Other banks in United States 33,405 29,453 18,409 18,774 19,424 17,025 16,085 17,006 15,582 15,457 62 Nonbanks 69,989 77,356 50,435 48,407 48,143 48,699 50,833 47,831 49,014 46,482 63 To foreigners 270,853 269,685 247,907 254,521 251,573 256,751 252,696 250,344 252,252 252,207 64 Other branches of parent bank 90,191 90,615 93,909 91,961 91,103 92,979 90,477 87,854 88,539 88,441 65 Banks 96,860 92,889 78,203 81,530 80,507 82,762 80,931 82,424' 82,473 81,874 66 Official institutions 19,614 18,896 20,281 21,827 21,703 20,935 21,234 21,017' 21,319 21,655 67 Nonbank foreigners 64,188 68,845 55,514 59,203 58,260 60,075 60,054 59,049 59,921 60,237 68 Other liabilities 19,844 19,335 20,441 22,124 21,339 23,198 22,588 23,133 24,088 23,922 69 Total payable in U.S. dollars 379,270 388,291 367,145 365,165 365,813 361,407 357,183 350,089' 346,572 345,407 70 Negotiable CDs3 n.a. n.a. 35,227 34,783 34,631 33,712 34,025 35,695 33,995 32,838 71 To United States 175,528 184,305 143,571 140,939 142,461 141,128 138,768 136,613 133,956 136,666 72 Parent bank 73,295 79,035 76,254 75,786 77,013 77,537 74,164 74,562 71,753 77,581 73 Other banks in United States 33,040 28,936 17,935 18,201 18,863 16,439 15,464 16,081 15,108 14,893 74 Nonbanks 69,193 76,334 49,382 46,952 46,585 47,152 49,140 45,970 47,095 44,192 75 To foreigners 192,510 194,139 178,260 179,553 179,354 177,130 174,624 167,784' 168,377 165,392 76 Other branches of parent bank 72,921 73,522 77,770 76,101 75,923 76,381 73,764 69,606 70,007 69,261 77 Banks 57,463 57,022 45,123 44,406 44,705 43,676 42,850 41,183' 41,562 39,685 78 Official institutions 15,055 13,855 15,773 17,407 17,278 15,935 16,238 16,221 16,007 15,902 79 Nonbank foreigners 47,071 51,260 39,594 41,639 41,448 41,138 41,772 40,774 40,801 40,544 80 Other liabilities 11,232 9,847 10,087 9,890 9,367 9,437 9,766 9,997 10,244 10,511 United Kingdom 81 Total, all currencies 161,067 158,732 144,385 148,860 149,600 151,456 151,118 150,276 149,607 152,456 82 Negotiable CDs3 n.a. n.a. 34,413 34,228 34,431 34,090 34,151 35,819 33,913 32,708 83 To United States 53,954 55,799 25,250 24,811 25,480 24,167 25,158 25,547 24,958 27,933 84 Parent bank 13,091 14,021 14,651 14,278 14,910 13,434 14,336 14,592 13,893 18,167 85 Other banks in United States 12,205 11,328 3,125 2,735 3,571 2,853 2,839 3,526 2,602 2,453 86 Nonbanks 28,658 30,450 7,474 7,798 6,999 7,880 7,983 7,429 8,463 7,313 87 To foreigners 99,567 95,847 77,424 81,034 81,004 83,480 82,317 79,671 80,646 81,446 88 Other branches of parent bank 18,361 19,038 21,631 21,785 22,565 23,647 22,348 20,233 20,175 21,932 89 Banks 44,020 41,624 30,436 31,573 30,852 32,389 31,518 32,041 33,102 32,200 90 Official institutions 11,504 10,151 10,154 11,260 11,240 10,180 10,823 10,824 10,812 10,519 91 Nonbank foreigners 25,682 25,034 15,203 16,416 16,347 17,264 17,628 16,573 16,557 16,795 92 Other liabilities 7,546 7,086 7,298 8,787 8,685 9,719 9,492 9,239 10,090 10,369 93 Total payable in U.S. dollars 130,261 131,167 117,497 116,317 117,334 114,124 115,065 112,816 111,263 112,681 94 Negotiable CDs3 n.a. n.a. 33,070 32,707 32,715 31,739 31,906 33,380 31,574 30,570 95 To United States 53,029 54,691 24,105 23,206 23,729 22,254 23,119 23,329 22,854 25,581 % Parent bank 12,814 13,839 14,339 13,869 14,472 12,777 13,773 13,995 13,350 17,651 97 Other banks in United States 12,026 11,044 2,980 2,550 3,387 2,687 2,628 3,309 2,479 2,295 98 Nonbanks 28,189 29,808 6,786 6,787 5,870 6,790 6,718 6,025 7,025 5,635 99 To foreigners 73,477 73,279 56,923 56,886 57,504 56,783 56,208 52,245 52,469 52,091 100 Other branches of parent bank 14,300 15,403 18,294 18,376 19,053 19,640 18,241 15,999 15,480 16,687 101 Banks 28,810 29,320 18,356 17,417 17,175 17,249 16,975 15,787 17,053 15,840 102 Official institutions 9,668 8,279 8,871 9,687 9,648 8,430 9,005 9,055 8,877 8,357 103 Nonbank foreigners 20,699 20,277 11,402 11,406 11,628 11,464 11,987 11,404 11,059 11,207 104 Other liabilities 3,755 3,197 3,399 3,518 3,386 3,348 3,832 3,862 4,366 4,439 Bahamas and Caymans 105 Total, all currencies 145,156 152,083 146,811 144,033 143,549 140,786 138,510 135,214 134,951 133,274 106 Negotiable CDs3 n.a. n.a. 615 436 344 320 356 686 745 747 107 To United States 104,425 111,299 102,955 99,360 99,818 98,667 95,775 94,071 92,668 92,138 108 Parent bank 47,081 50,980 47,162 45,548 45,713 47,141 43,372 44,431 42,841 43,198 109 Other banks in United States 18,466 16,057 13,938 14,537 14,742 12,972 12,151 12,081 11,940 11,871 110 Nonbanks 38,878 44,262 41,855 39,275 39,363 38,554 40,252 37,559 37,887 37,069 111 To foreigners 38,274 38,445 40,320 41,422 40,622 39,063 39,658 37,667 38,786 37,306 112 Other branches of parent bank 15,796 14,936 16,782 17,752 16,608 16,640 17,632 16,023 17,201 15,593 113 Banks 10,166 11,876 12,405 12,872 13,611 12,314 11,443 11,423 11,123 10,957 114 Official institutions 1,967 1,919 2,054 2,194 1,866 1,939 1,687 1,760 1,869 2,275 115 Nonbank foreigners 10,345 11,274 9,079 8,604 8,537 8,170 8,8% 8,461 8,593 8,481 116 Other liabilities 2,457 2,339 2,921 2,815 2,765 2,736 2,721 2,790 2,752 3,083 117 Total payable in U.S. dollars 141,908 148,278 143,582 139,909 139,648 136,823 134,623 130,921 130,681 129,204 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 May June July Aug. Sept.r Oct. Nov.'' 1 Total1 177,950 180,525 173,725 177,780 180,766 181,175 180,309 178,348 179,883 By type 2 Liabilities reported by banks in the United States2 25,534 26,089 23,153 22,915 22,101 23,224 25,889 27,050 29,211 3 U.S. Treasury bills and certificates3 54,341 59,976 56,691 58,589 60,727 60,921 56,493 54,398 54,311 U.S. Treasury bonds and notes 4 Marketable 68,514 69,029 70,552 73,265 75,053 75,157 76,221 75,012 74,743 5 Nonmarketable4 7,250 5,800 4,500 4,500 4,500 3,550 3,550 3,550 3,550 6 U.S. securities other than U.S. Treasury securities5 22,311 19,631 18,829 18,511 18,385 18,323 18,156 18,338 18,048 By area 7 Western Europe1 67,645 69,789 67,948 70,346 73,378 75,226 74,545 74,338 76,779 8 Canada 2,438 1,528 1,558 1,571 2,010 1,664 1,561 1,586 1,536 9 Latin America and Caribbean 6,248 8,554 8,072 8,467 8,846 9,524 10,532 10,079 10,817 10 Asia 92,572 93,920 90,181 91,406 90,834 89,485 88,282 87,245 85,863 11 Africa 958 1,264 1,262 1,299 1,259 1,110 1,397 1,410 1,629 12 Other countries6 8,089 5,470 4,704 4,691 4,439 4,166 3,992 3,690 3,259 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 Dec. Mar. June Sept. 1 Banks'own liabilities 3,523 4,844 5,219 8,578 8,012 10,150 12,048 2 Banks' own claims 4,980 7,707 7,231 11,874 12,639 14,012 14,895 3 Deposits 3,398 4,251 2,731 4,998 6,148 7,437 8,498 4 Other claims 1,582 3,456 4,501 6,876 6,491 6,575 6,397 5 Claims of banks' domestic customers1 971 676 1,059 569 440 243 328 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 • March 1986 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 May June July Aug. Sept/ Oct. Nov.? 1 AU foreigners 307,056 369,607 407,133 411,297 412,861 416,420 420,182 420,801 417,875 421,216 2 Banks' own liabilities 227,089 279,087 306,499 315,608 317,062 318,944 321,364 323,382 322,191 323,937 3 Demand deposits 15,889 17,470 19,571 17,705 19,423 17,662 17,735 20,926 18,453 20,825 4 Time deposits' 68,797 90,632 110,286 120,792 116,331 116,069 119,071 115,221 114,544 114,392 5 Other2 23,184 25,874 26,002 25,614 25,782 25,875 25,701 29,754 28,978 30,188 6 . Own foreign offices3 119,219 145,111 150,640 151,496 155,526 159,338 158,857 157,481 160,216 158,532 7 Banks' custody liabilities4 79,967 90,520 100,634 95,690 95,799 97,477 98,818 97,419 95,684 97,280 8 U.S. Treasury bills and certificates5 55,628 68,669 76,368 71,597 73,061 75,396 75,797 73,398 72,163 73,165 9 Other negotiable and readily transferable ! instruments6 20,636 17,467 18,747 17,690 1166,,220077 16,165 16,610 17,160 16-"*' 5 16,974 10 Other 3,702 4,385 5,518 6,403 6,532 5,916 6,412 6,861 6,/66 7,140 11 Nonmonetary international and regional organizations7 44,,992222 55,,995577 4,083 6,694 5,709 5,019 7,353 7,467 6,766 7,803 12 Banks' own liabilities 1,909 4,632 1,644 4,389 3,928 3,243 5,569 3,275 1,842 1,535 13 Demand deposits 106 297 254 264 164 134 252 243 143 252 14 Time deposits' 1,664 3,584 1,102 3,747 3,023 2,556 4,366 2,261 1,299 1,051 15 Other2 139 750 288 377 740 553 951 771 399 233 16 Banks' custody liabilities4 3,013 1,325 2,440 2,305 1,782 1,777 1,784 4,192 4,924 6,268 17 U.S. Treasury bills and certificates 1,621 463 916 775 642 767 742 2,759 3,636 5,069 18 Other negotiable and readily transferable instruments6 1,392 862 1,524 1,531 1,140 1,010 1,042 1,433 11,,228877 1,195 19 Other 0 0 0 0 0 0 1 0 11 5 20 Official institutions8 71,647 79,876 86,065 79,844 81,504 82,828 84,145 82,382 81,447 83,542 21 Banks' own liabilities '. 16,640 19,427 19,039 17,652 17,795 17,256 17,720 20,262 21,214 23,263 22 1,899 1,837 1,823 1,630 1,891 1,546 1,538 2,151 1,707 2,012 23 Time deposits' 5,528 7,318 9,374 8,728 9,050 9,070 9,334 8,954 10,262 10,520 24 Other2 9,212 10,272 7,842 7,294 6,853 6,640 6,849 9,157 9,245 10,731 25 Banks' custody liabilities4 55,008 60,448 67,026 62,192 63,710 65,572 66,425 62,120 60,234 60,279 26 U.S. Treasury bills and certificates5 46,658 54,341 59,976 56,691 58,589 60,727 60,921 56,493 54,398 5544,,333311 27 Other negotiable and readily transferable instruments6 8,321 6,082 6,966 5,451 5,042 4,725 5,291 5,492 5,767 5,843 28 Other 28 25 84 50 78 120 213 135 69 105 29 Banks9 185,881 226,887 248,897 251,784 254,045 257,113 256,645 257,733 256,610 254,895 30 Banks' own liabilities 169,449 205,347 225,372 229,858 232,319 235,488 234,401 235.106 234,659 233,070 31 Unaffiliated foreign banks 50,230 60,236 74,732 78,361 76,793 76,150 75,544 77,625 74,443 74,539 32 Demand deposits 8,675 8,759 10,556 8,714 9,847 8,647 8,594 10,468 9,045 9,934 33 Time deposits1 28,386 37,439 47,155 52,674 49,968 49,919 49,915 48,779 47,889 46,836 34 Other2 13,169 14,038 17,021 16,973 16,977 17,584 17,035 18,377 17,510 17,769 35 Own foreign offices3 119,219 145,111 150,640 151,496 155,526 159,338 158,857 157,481 160,216 158,532 36 Banks' custody liabilities4 16,432 21,540 23,525 21,926 21,727 21,625 22,244 22,627 21,951 21,825 37 U.S. Treasury bills and certificates 5,809 10,178 11,448 10,216 9,745 9,934 9,966 9,952 9,896 9,405 38 Other negotiable and readily transferable instruments6 7,857 7,485 7,236 6,104 6,231 6,390 6,569 6,462 5,906 5,853 39 Other 2,766 3,877 4,841 5,606 5,751 5,301 5,710 6,213 6,148 6,567 40 Other foreigners ; 44,606 56,887 68,087 72,976 71,602 71,460 72,039 73,219 73,051 74,976 41 Banks' own liabilities 39,092 49,680 60,444 63,710 63,020 62,957 63,674 64,740 64,476 66,069 42 Demand deposits : 5,209 6,577 6,938 7,098 7,520 7,335 7,351 8,064 7,558 8,627 43 Time deposits 33,219 42,290 52,655 55,643 54,290 54,524 55,456 55,227 55,093 55,986 44 Other2 664 813 851 969 1,211 1,098 867 1,449 1,825 1,456 45 Banks' custody liabilities4 5,514 7,207 7,642 9,266 8,581 8,503 8,365 8,479 8,575 8,907 46 U.S. Treasury bills and certificates 1,540 3,686 4,029 3,915 4,085 3,968 4,169 4,193 4,232 4,360 47 Other negotiable and readily transferable instruments6 33,,006655 3,038 3,021 4,604 3,793 4,040 3,708 3,774 3,795 4,083 48 Other PP 483 593 746 704 495 489 513 548 463 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 14,307 10,346 10,476 9,081 8,679 8,567 8,903 9,228 9,088 9,146 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 msuority-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 whplly 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 AArreeaa aanndd ccoouunnttrryy 11998822 11998833 11998844 May June July Aug. Sept. Oct. Nov.'' 1 Total 307,056 369,607 407,133 411,297 412,861 416,420 420,182 420,801' 417,875 421,216 2 Foreign countries 302,134 363,649 403,049 404,603 407,152 411,401 412,829 413,334' 411,109 413,413 3 Europe 117,756 138,072 153,212 151,219 153,718 156,132 160,127 157,265' 158,349 163,503 4 Austria 519 585 615 627 563 567 711 767 613 655 5 Belgium-Luxembourg 2,517 2,709 4,114 4,619 4,889 5,743 5,416 5,725' 5,262 5,556 6 Denmark 509 466 438 494 727 684 617 778 558 624 7 Finland 748 531 418 604 325 349 377 35C 594 497 8 8,171 9,441 12,701 14,178 13,849 15,237 15,626 15,741' 15,986 16,320 9 Germany 5,351 3,599 3,358 3,727 4,003 4,389 5,359 5,224' 4,366 7,264 10 537 520 699 585 605 588 531 593' 536 574 11 Italy 5,626 8,462 10,762 8,467 9,276 9,624 9,537 9,088 9,722 9,069 1? Netherlands 3,362 4,290 4,799 4,685 4,386 4,689 4,588 4,568 4,285 4,361 13 Norway 1,567 1,673 1,548 1,994 1,397 1,183 1,156 1,043 1,132 1,008 14 Portugal 388 373 597 665 635 658 672 641' 647 619 15 1,405 1,603 2,082 2,030 2,015 2,113 2,034 2,140 2,100 2,122 16 1,390 1,799 1,676 1,689 2,277 2,559 2,008 1,668 1,760 1,492 17 Switzerland 29,066 32,246 31,740 29,706 29,547 29,835 29,475 29,29C 28,495 29,102 18 Turkey 296 467 584 384 631 598 404 516 417 289 19 United Kingdom 48,172 60,683 68,671 69,779 70,958 70,208 73,562 70,540' 73,317 74,226 70 Yugoslavia 499 562 602 585 729 626 622 647 626 718 21 Other Western Europe1 7,006 7,403 7,192 5,877 6,261 6,004 6,884 7,432' 7,454 8,438 7? U.S.S.R 50 65 79 67 31 72 45 37 51 36 23 Other Eastern Europe2 576 596 537 458 614 406 503 477 429 534 24 Canada 12,232 16,026 16,048 16,214 15,874 16,284 16,739 17,358' 16,239 16,471 75 Latin America and Caribbean 114,163 140,088 153,516 157,092 158,310 159,011 157,634 157,480' 157,150 154,894 76 Argentina 3,578 4,038 4,394 4,912 5,081 5,322 5,187 5,634 5,872 5,899 77 Bahamas 44,744 55,818 56,897 58,195 57,406 55,858 55,486 53,694' 54,524 53,290 78 1,572 2,266 2,370 3,192 2,503 2,380 2,741 2,124 2,238 2,393 79 Brazil 2,014 3,168 5,275 5,376 5,187 5,602 5,918 5,894 5,861 5,614 30 British West Indies 26,381 34,545 36,773 35,489 38,%5 40,%5 38,338 38,931' 37,047 35,692 31 Chile 1,626 1,842 2,001 1,922 1,870 1,910 1,966 1,907 1,940 2,867 37 Colombia 2,594 1,689 2,514 2,452 2,526 2,421 2,543 2,599 2,562 2,920 33 Cuba 9 8 10 7 6 10 9 13 64 7 34 Ecuador 455 1,047 1,092 987 1,004 1,046 1,043 1,251 1,029 1,255 35 Guatemala 670 788 896 979 %3 972 995 1,005 957 1,087 36 Jamaica 126 109 183 146 123 194 152 144 122 150 37 Mexico 8,377 10,392 12,506 13,678 13,533 13,123 13,381 13,809 13,610 13,940 38 Netherlands Antilles 3,597 3,879 4,153 4,439 4,200 4,025 4,364 4,973 4,666 4,603 39 4,805 5,924 6,951 7,570 7,427 7,462 7,447 7,168 8,251 6,504 40 1,147 1,166 1,266 1,162 1,168 1,113 1,133 1,159 1,093 1,123 41 Uruguay 759 1,244 1,394 1,492 1,415 1,460 1,557 1,576 1,498 1,535 4? Venezuela 8,417 8,632 10,545 10,696 10,471 10,853 10,940 11,121 11,404 11,353 43 Other Latin America and Caribbean 3,291 3,535 4,297 4,3% 4,460 4,297 4,435 4,479 4,414 4,661 44 48,716 58,570 71,192 71,641 70,477 71,715 70,509 73,292' 71,676 71,060 China 45 Mainland 203 249 1,153 698 886 939 1,135 1,973 1,809 1,380 46 2,761 4,051 4,975 5,381 5,545 5,849 6,047 6,244 6,455 7,429 47 Hong Kong 4,465 6,657 6,594 7,360 7,989 7,831 8,012 7,924' 7,964 8,181 48 433 464 507 546 569 555 484 644' 473 562 49 Indonesia 857 997 1,033 1,164 1,264 1,463 1,337 1,363 1,570 1,381 50 Israel 606 1,722 1,268 988 1,053 1,011 885 1,189' 2,118 1,595 51 Japan 16,078 18,079 21,652 22,688 21,103 22,913 22,537 23,597' 22,092 21,689 57 1,692 1,648 1,724 1,598 1,705 1,493 1,580 1,657 1,751 1,685 53 Philippines 770 1,234 1,383 1,305 1,443 1,335 1,694 1,607' 1,325 1,189 54 Thailand 629 747 1,257 1,167 1,063 984 1,073 1,029 1,014 1,066 55 Middle-East oil-exporting countries3 13,433 12,976 16,804 16,316 15,052 15,410 14,811 15,352' 15,253 14,941 56 Other Asia 6,789 9,748 12,841 12,430 12,805 11,932 10,916 10,713' 9,852 9,%2 57 3,124 2,827 3,396 3,429 3,920 3,384 3,501 3,635 3,723 3,989 58 Egypt 432 671 647 618 745 881 737 923 885 780 59 81 84 118 189 161 98 162 157 140 145 60 South Africa 292 449 328 273 332 181 420 370 404 462 61 23 87 153 124 170 87 103 115 136 140 6? Oil-exporting countries4 1,280 620 1,189 1,114 1,497 1,099 1,092 1,049 1,076 1,407 63 Other Africa 1,016 917 961 1,112 1,015 1,037 986 1,021 1,082 1,056 64 6,143 8,067 5,684 5,009 4,854 4,876 4,319 4,303' 3,971 3,495 65 5,904 7,857 5,300 4,608 4,462 4,364 3,850 3,762 3,477 2,962 66 All other 239 210 384 401 392 511 469 541' 494 534 67 Nonmonetary international and regional organizations 4,922 5,957 4,083 6,694 5,709 5,019 77,,335533 77,,446677 66,,776666 77,,880033 68 International 4,049 5,273 3,376 5,636 4,698 3,967 6,458 6,542 5,770 6,942 69 Latin American regional 517 419 587 834 808 782 739 796 646 580 70 Other regional5 357 265 120 224 203 270 156 129 350 281 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 • March 1986 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 May June July Aug. Sept. Oct. Nov.? I Total 355,705 391,312 398,845 391,355 396,253 390,368 387,997 392,778' 380,518 384,217 2 Foreign countries 355,636 391,148 398,251 390,540 395,543 390,094 387,558 392,395' 379,750 383,605 3 Europe 85,584 91,927 98,151 100,205 100,953 100,377 101,028 105,734' 101,829 106,680 4 Austria 229 401 433 552 536 815 703 763' 673 613 5 Belgium-Luxembourg 5,138 5,639 4,794 5,264 5,219 5,740 5,501 6,147 5,871 6,815 6 Denmark 554 1,275 648 560 474 498 492 615 636 545 7 Finland 990 1,044 898 700 896 875 738 905 796 909 8 France 7,251 8,766 9,142 10,462 9,969 10,001 10,282 11,029' 10,193 9,788 9 Germany 1,876 1,284 1,313 1,015 1,223 1,115 948 999 1,036 1,349 10 Greece 452 476 817 921 1,002 947 959 1,016 966 854 11 Italy 7,560 9,018 9,119 7,798 7,520 7,623 6,527 7,436' 7,597 7,763 12 Netherlands 1,425 1,267 1,351 1,040 1,339 1,137 1,200 1,297' 1,110 1,384 13 Norway 572 690 675 753 750 710 683 858 787 755 14 Portugal 950 1,114 1,243 1,158 1,156 1,151 1,181 1,211 1,141 1,128 15 Spain 3,744 3,573 2,884 2,587 2,700 2,387 2,156 2,438 2,312 2,199 16 Sweden 3,038 3,358 2,220 2,177 2,067 2,698 2,496 2,474' 2,640 2,541 17 Switzerland 1,639 1,863 2,123 1,631 2,231 2,669 2,629 3,091 2,604 3,161 18 Turkey 560 812 1,130 1,162 1,208 1,313 1,234 1,303 1,355 1,269 19 United Kingdom 45,781 47,364 55,352 58,020 58,377 56,437 59,280 60,105' 57,577 60,944 20 Yugoslavia 1,430 1,718 1,886 1,940 1,958 1,972 1,954 1,899 1,866 1,879 21 Other Western Europe' 368 477 596 760 775 679 629 699' 1,206 1,558 22 U.S.S.R 263 192 142 312 297 250 239 199 332 125 23 Other Eastern Europe2 1,762 1,598 1,382 1,393 1,255 1,358 1,198 1,252 1,131 1,102 24 Canada 13,678 16,341 16,093 17,926 17,889 16,696 17,005 16,940' 15,932 16,179 25 Latin America and Caribbean 187,969 205,491 207,649 201,180 203,974 200,765 197,106 196,388' 190,587 191,640 26 Argentina 10,974 11,749 11,043 11,346 11,416 11,456 11,293 11,855' 11,230 11,486 27 Bahamas 56,649 59,633 57,949 56,781 59,477 55,610 53,707 53,414' 51,236 48,977 28 Bermuda 603 566 592 506 563 405 502 48C 1,017 563 29 Brazil 23,271 24,667 26,315 26,434 26,549 26,559 26,441 26,017' 25,394 25,412 30 British West Indies 29,101 35,527 38,120 36,107 36,372 37,436 35,853 35,096' 34,147 37,069 31 Chile 5,513 6,072 6,839 6,634 6,680 6,663 6,476 6,524 6,138 6,249 32 Colombia 3,211 3,745 3,499 3,270 3,207 3,210 3,205 3,195 3,209 3,211 33 Cuba 3 0 0 0 0 0 0 0 4 0 34 Ecuador 2,062 2,307 2,420 2,487 2,493 2,450 2,430 2,486 2,411 2,419 35 Guatemala3 124 129 158 149 145 153 149 168 165 197 36 Jamaica3 181 215 252 237 227 234 228 228 222 222 37 Mexico 29,552 34,802 34,824 32,748 32,384 32,129 32,375 32,349 31,700 32,293 38 Netherlands Antilles 839 1,154 1,350 1,386 1,249 1,110 1,135 1,170 1,387 1,059 39 Panama 10,210 7,848 7,707 6,751 6,856 6,985 6,923 7,108' 6,526 6,522 40 Peru 2,357 2,536 2,384 2,310 2,286 2,237 2,221 2,206 2,013 1,990 41 Uruguay 686 977 1,088 1,013 1,013 1,007 1,018 1,035 947 956 42 Venezuela 10,643 11,287 11,017 10,947 10,996 10,992 11,028 11,052 10,818 10,874 43 Other Latin America and Caribbean 1,991 2,277 2,091 2,072 2,060 2,129 2,122 2,005 2,022 2,142 44 Asia 60,952 67,837 66,296 61,833 6633,,447700 6633,,224422 6633,,771100 6644,,554477'' 6622,,883344 6600,,554499 China 45 Mainland 214 292 710 543 358 635 560 1,148 997 748 46 Taiwan 2,288 1,908 1,849 1,641 1,718 1,540 1,527 1,525 1,329 1,258 47 Hong Kong 6,787 8,489 7,283 7,290 7,237 7,473 7,999 7,718 6,917 6,452 48 India 222 330 425 270 310 385 460 461 388 439 49 Indonesia 348 805 724 701 682 631 623 718 653 608 50 Israel 2,029 1,832 2,088 2,038 2,598 2,053 1,955 1,875 1,901 1,958 51 Japan 28,379 30,354 29,066 25,429 26,529 26,336 27,785 27,002' 28,558 26,757 52 Korea 9,387 9,943 9,285 9,127 9,158 9,707 9,337 9,223' 9,088 8,902 53 Philippines 2,625 2,107 2,550 2,384 2,448 2,454 2,487 2,445' 2,237 2,285 54 Thailand 643 1,219 1,125 852 862 746 757 781' 756 788 55 Middle East oil-exporting countries'' 3,087 4,954 5,044 5,546 5,120 5,315 4,116 4,845 4,574 4,247 56 Other Asia 4,943 5,603 6,147 6,012 6,449 5,967 6,104 6,805' 5,436 6,106 57 Africa 5,346 6,654 6,615 6,203 6,075 5,957 5,718 5,700' 5,458 5,415 58 Egypt 322 747 728 612 626 606 585 634 668 685 59 Morocco 353 440 583 577 592 596 598 592 610 584 60 South Africa 2,012 2,634 2,795 2,497 2,524 2,402 2,214 2,062' 1,968 1,848 61 Zaire 57 33 18 24 24 24 25 22 21 21 62 Oil-exporting countries5 801 1,073 842 871 740 743 722 859' 674 680 63 Other 1,802 1,727 1,649 1,621 1,569 1,587 1,574 1,531 1,516 1,597 64 Other countries 2,107 2,898 3,447 3,194 3,183 3,057 2,991 3,087' 3,110 3,143 65 Australia 1,713 2,256 2,769 2,536 2,498 2,320 2,227 2,304' 2,293 2,341 66 All other 394 642 678 658 685 737 764 783' 818 803 67 Nonmonetary international and regional organizations6 68 164 594 815 710 275 438 382 768 612 1. Includes the Bank for International Settlements. Beginning April 1978, also 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and includes Eastern European countries not listed in line 23. United Arab Emirates (Trucial States). 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German 5. Comprises Algeria, Gabon, Libya, and Nigeria. Democratic Republic, Hungary, Poland, and Romania. 6. Excludes the Bank for International Settlements, which is included in 3. Included in "Other Latin America and Caribbean" through March 1978. "Other Western Europe." 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 May June July Aug. Sept.' Oct. NOV.P 1 Total 333333399999996666666,,,,,,,000000011111115555555 444444422222226666666,,,,,,,222222211111115555555 444444433333331111111,,,,,,,777777766666661111111 444444422222225555555,,,,,,,666666699999992222222 444444422222226666666,,,,,,,222222244444446666666 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 333333355555555555555,,,,,,,777777700000005555555 333333399999991111111,,,,,,,333333311111112222222 333333399999998888888,,,,,,,888888844444445555555 339911,,335555 333333399999996666666,,,,,,,222222255555553333333 390,368 387,997 333333399999992222222,,,,,,,777777777777778888888 380,518 338844,,221177 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 44444445555555,,,,,,,444444422222222222222 55555557777777,,,,,,,555555566666669999999 66666661111111,,,,,,,555555599999995555555 6611,,667733 66666661111111,,,,,,,222222244444441111111 61,239 60,961 66666662222222,,,,,,,111111199999996666666 60,103 5599,,995544 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 111111122222227777777,,,,,,,222222299999993333333 111111144444446666666,,,,,,,333333399999993333333 111111155555556666666,,,,,,,111111177777774444444 115577,,002266 111111166666662222222,,,,,,,888888844444440000000 158,164 155,734 111111155555559999999,,,,,,,555555522222220000000 156,063 115588,,778855 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222221111111,,,,,,,333333377777777777777 111111122222223333333,,,,,,,888888833333337777777 111111122222223333333,,,,,,,999999966666667777777 111199,,443355 111111111111118888888,,,,,,,444444499999993333333 117,446 118,023 111111111111118888888,,,,,,,000000044444448888888 113,108 111144,,992255 66 DDeeppoossiittss 44444444444444,,,,,,,222222222222223333333 44444447777777,,,,,,,111111122222226666666 44444448888888,,,,,,,333333377777779999999 4488,,445599 44444448888888,,,,,,,111111133333335555555 48,786 49,528 44444449999999,,,,,,,444444400000006666666 46,845 4477,,112255 77 OOtthheerr 77777777777777,,,,,,,111111155555553333333 77777776666666,,,,,,,777777711111111111111 77777775555555,,,,,,,555555588888888888888 7700,,997766 77777770000000,,,,,,,333333355555558888888 68,660 68,495 66666668888888,,,,,,,666666644444442222222 66,264 6677,,779999 88 AAllll ootthheerr ffoorreeiiggnneerrss 66666661111111,,,,,,,666666611111114444444 66666663333333,,,,,,,555555511111114444444 55555557777777,,,,,,,111111100000009999999 5533,,222222 55555553333333,,,,,,,666666677777779999999 53,520 53,279 55555553333333,,,,,,,000000011111113333333 51,244 5500,,555544 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 .... 44444440000000,,,,,,,333333311111110000000 33333334444444,,,,,,,999999900000003333333 33333332222222,,,,,,,999999911111116666666 22222229999999,,,,,,,444444433333339999999 33333333333333,,,,,,,444444466666668888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,999999966666669999999 3333333,,,,,,,333333388888880000000 2222222,,,,,,,888888877777770000000 3333333,,,,,,,333333311111114444444 11 Negotiable and readily transferable 33333330000000,,,,,,,777777766666663333333 22222226666666,,,,,,,000000066666664444444 22222223333333,,,,,,,888888800000005555555 22222221111111,,,,,,,000000066666664444444 22222224444444,,,,,,,888888822222227777777 12 Outstanding collections and other 7777777,,,,,,,000000055555556666666 5555555,,,,,,,888888877777770000000 5555555,,,,,,,777777733333332222222 5555555,,,,,,,555555500000005555555 5555555,,,,,,,333333322222227777777 13 MEMO: Customer liability on 33333338888888,,,,,,,111111155555553333333 33333337777777,,,,,,,777777711111115555555 33333337777777,,,,,,,111111100000003333333 33333331111111,,,,,,,666666699999999999999 33333330000000,,,,,,,555555511111117777777 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 .... 42,499 46,337' 40,656' 37,651' 36,366' 37,769' 38,434' 38,399 37,479 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 subsidiaries 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 Dec. Mar. June Sept.' 1 Total 154,590 228,150 243,715 243,409 239,521 231,713 231,773 By borrower 2 Maturity of 1 year or less' 116,394 173,917 176,158 166,381 165,185 158,641 160,727 3 Foreign public borrowers 15,142 21,256 24,039 22,758 23,615 23,899 25,534 4 All other foreigners 101,252 152,661 152,120 143,623 141,570 134,742 135,193 5 Maturity of over 1 year' 38,197 54,233 67,557 77,027 74,335 73,072 71,046 6 Foreign public borrowers 15,589 23,137 32,521 39,247 38,164 37,425 36,775 7 All other foreigners 22,608 31,095 35,036 37,780 36,171 35,647 34,271 By area Maturity of 1 year or less' 8 Europe 28,130 50,500 56,117 58,398 60,391 55,656 57,867 9 Canada 4,662 7,642 6,211 6,015 7,531 6,135 6,052 10 Latin America and Caribbean 48,717 73,291 73,660 61,653 60,162 63,545 62,023 11 31,485 37,578 34,403 33,484 30,690 27,537 29,049 17. Africa 2,457 3,680 4,199 4,442 4,109 4,003 3,954 13 All other2 943 1,226 1,569 2,388 2,301 1,764 1,782 Maturity of over 1 year' 14 Europe 8,100 11,636 13,576 9,605 8,545 8,628 8,078 15 Canada 1,808 1,931 1,857 1,890 2,181 2,116 1,940 16 Latin America and Caribbean 25,209 35,247 43,888 57,069 55,372 53,507 52,994 17 1,907 3,185 4,850 5,323 5,221 5,203 5,212 18 Africa 900 1,494 2,286 2,033 1,963 1,996 1,665 19 All other2 272 740 1,101 1,107 1,053 1,622 1,157 • 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 • March 1986 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1983 1984 1985 AArreeaa oorr ccoouunnttrryy 11998811 11998822 Sept. Dec. Mar. June7 Sept. Dec. Mar. June Sept.P 1 Total 415.2 438.7 431.0 437.3 435.1 432.4 411.9 409.2 411.0 402.6 403.9 2 G-10 countries and Switzerland 175.5 179.7 168.8 168.0 166.0 157.9 148.2 148.0 152.8 146.8 153.2 3 Belgium-Luxembourg 13.3 13.1 12.6 12.4 11.0 10.9 9.8 8.8 9.4 9.0 9.5 4 France 15.3 17.1 16.2 16.3 15.9 14.2 14.3 14.1 14.6 13.6 14.9 5 Germany 12.9 12.7 11.6 11.3 11.7 10.9 10.0 9.0 8.9 9.6 9.8 6 Italy 9.6 10.3 9.9 11.4 11.2 11.5 9.7 10.1 10.0 8.5 8.4 7 Netherlands 4.0 3.6 3.6 3.5 3.4 3.0 3.4 3.9 3.7 3.7 3.4 8 Sweden 3.7 5.0 4.9 5.1 5.2 4.3 3.5 3.2 3.1 2.8 3.1 9 Switzerland 5.5 5.0 4.2 4.3 4.3 4.2 3.9 3.9 4.2 4.0 4.1 10 United Kingdom 70.1 72.1 67.8 65.4 65.1 60.6 57.5 60.0 65.1 65.6 68.1 11 Canada 10.9 10.4 8.9 8.3 8.6 8.9 8.1 7.9 9.0 8.0 7.5 12 Japan 30.2 30.2 29.0 29.9 29.7 29.3 27.9 27.2 24.8 21.9 24.3 13 Other developed countries 28.4 33.7 34.3 36.1 35.7 37.2 36.4 33.9 33.0 32.5 32.3 14 Austria 1.9 1.9 1.9 1.9 2.0 1.9 1.8 1.6 1.6 1.6 1.7 15 Denmark 2.3 2.4 3.3 3.4 3.4 3.1 2.9 2.2 2.1 1.9 2.1 16 Finland 1.7 2.2 1.8 2.4 2.1 2.3 1.9 1.9 1.8 1.8 1.8 17 Greece 2.8 3.0 2.9 2.8 3.0 3.3 3.2 2.9 2.9 2.9 2.8 18 Norway 3.1 3.3 3.2 3.3 3.2 3.2 3.2 3.0 2.9 2.9 3.4 19 Portugal 1.1 1.5 1.4 1.5 1.4 1.7 1.6 1.4 1.4 1.3 1.4 20 Spain 6.6 7.5 7.1 7.1 7.1 7.3 6.9 6.5 6.4 5.9 6.2 21 Turkey 1.4 1.4 1.5 1.7 1.9 2.0 2.0 1.9 1.9 2.0 2.1 22 Other Western Europe 2.1 2.3 2.1 1.8 1.8 1.9 1.7 1.7 1.7 1.8 1.7 23 South Africa 2.8 3.7 4.7 4.7 4.8 4.7 5.0 4.5 4.2 3.9 3.3 24 Australia 2.5 4.4 4.4 5.5 5.2 5.8 6.3 6.2 6.2 6.4 5.8 25 OPEC countries2 24.8 27.4 27.2 28.9 28.6 27.0 25.2 25.8 25.4 23.8 24.1 26 Ecuador 2.2 2.2 2.1 2.2 2.1 2.1 2.1 2.2 2.2 2.3 2.3 27 Venezuela 9.9 10.5 9.8 9.9 9.7 9.5 9.2 9.3 9.3 9.3 9.2 28 Indonesia 2.6 3.2 3.4 3.8 4.0 4.3 4.0 3.9 3.8 3.6 3.6 29 Middle East countries 7.5 8.7 9.1 10.0 9.8 8.4 7.4 8.2 7.8 6.6 6.7 30 African countries 2.5 2.8 2.8 3.0 3.0 2.7 2.5 2.3 2.3 2.2 2.3 31 Non-OPEC developing countries 96.3 107.1 109.8 111.6 112.2 113.5 112.7 112.9 111.8 111.0 111.1 Latin America 32 Argentina 9.4 8.9 9.5 9.5 9.5 9.2 9.1 8.7 8.6 8.6 9.3 33 Brazil 19.1 22.9 23.1 23.1 25.1 25.4 26.3 26.3 26.4 26.6 26.1 34 Chile 5.8 6.3 6.3 6.4 6.5 6.7 7.1 7.0 7.0 6.9 6.9 35 Colombia 2.6 3.1 3.2 3.2 3.1 3.0 2.9 2.9 2.8 2.7 2.6 36 Mexico 21.6 24.5 25.9 26.1 25.6 26.2 26.2 26.0 25.7 25.6 25.2 37 Peru 2.0 2.6 2.4 2.4 2.3 2.3 2.2 2.2 2.2 2.1 2.0 38 Other Latin America 4.1 4.0 4.2 4.2 4.4 4.1 3.9 3.9 3.7 3.6 3.5 Asia China 39 Mainland .2 .2 .2 .3 .3 .6 .5 .7 .7 .3 1.1 40 Taiwan 5.1 5.3 5.2 5.3 4.9 5.4 5.3 5.3 5.4 5.5 5.2 41 India .3 .6 .8 1.0 1.0 1.0 1.1 1.0 1.0 1.0 1.2 42 Israel 2.1 2.3 1.7 1.9 1.6 1.9 1.7 1.8 1.7 2.3 1.5 43 Korea (South) 9.4 10.9 10.9 11.3 11.1 11.3 10.5 10.9 10.6 10.3 10.6 44 Malaysia 1.7 2.1 2.8 2.9 2.8 2.9 3.1 3.0 2.9 3.0 2.9 45 Philippines 6.0 6.3 6.2 6.2 6.7 6.3 5.9 6.0 6.1 6.0 6.1 46 Thailand 1.5 1.6 1.8 2.2 2.1 1.9 1.8 1.8 1.7 1.6 1.7 47 Other Asia 1.0 1.1 1.0 1.0 .9 1.1 1.0 1.2 1.1 1.0 1.1 Africa 48 Egypt 1.1 1.2 1.4 1.5 1.4 1.4 1.2 1.2 1.1 1.0 1.0 49 Morocco .7 .7 .8 .8 .8 .8 .8 .8 .8 .8 .9 50 Zaire .2 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 51 Other Africa3 2.3 2.4 2.4 2.3 2.2 1.9 1.9 2.1 2.2 2.0 2.0 52 Eastern Europe 7.8 6.2 5.3 5.3 4.9 4.9 4.5 4.4 4.3 4.3 4.6 53 U.S.S.R .6 .3 .2 .2 .2 .2 .2 .1 .2 .3 .2 54 Yugoslavia 2.5 2.2 2.3 2.4 2.3 2.3 2.3 2.3 2.2 2.2 2.5 55 Other 4.7 3.7 2.8 2.8 2.5 2.4 2.1 2.0 1.9 1.8 1.9 56 Offshore banking centers 63.7 66.8 68.7 70.5 71.4 74.6 67.4 67.0 66.6 66.8 61.2 57 Bahamas 19.0 19.0 21.6 21.8 24.6 27.5 23.8 21.5 21.6 21.9 16.8 58 Bermuda .7 .9 .8 .9 .7 .7 1.0 .9 .7 .9 .8 59 Cayman Islands and other British West Indies 12.4 12.9 10.5 12.2 12.0 12.2 11.1 11.7 12.4 12.4 12.5 60 Netherlands Antilles 3.2 3.3 4.1 4.2 3.3 3.3 3.1 3.4 3.3 3.2 2.3 61 Panama4 7.7 7.6 5.7 6.0 6.3 6.6 5.7 6.8 5.7 5.5 6.2 62 Lebanon .2 .1 .1 .1 .1 .1 .1 .1 .1 .1 .0 63 Hong Kong 11.8 13.9 15.2 15.0 14.4 13.9 13.1 12.8 12.9 13.1 13.2 64 Singapore 8.7 9.2 10.5 10.3 10.0 10.3 9.5 9.8 10.0 9.7 9.4 65 Others5 .1 .0 .1 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated6 18.8 17.9 16.9 17.0 16.3 17.4 17.4 17.3 17.1 17.4 17.8 1. The banking offices covered by these data are the U.S. offices and foreign Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. as Bahrain and Oman (not formally members of OPEC). Offices not covered include (1) U.S. agencies and branches 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 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998811 11998822 11998833 June' Sept.' Dec. Mar. June 1 Total 28,618 27,512 25,346' 34,856 31,438 29,447' 26,22y 24,571' 2 Payable in dollars 24,909 24,280 22,233' 31,567 28,538 26,479' 23,456' 21,935' 3 Payable in foreign currencies 3,709 3,232 3,113' 3,290 2,900 2,968' 2,767' 2,636' By type 4 Financial liabilities 12,157 11,066 10,572' 19,192 16,488 14,599' 11,702' 11,468' 5 Payable in dollars 9,499 8,858 8,700' 17,058 14,602 12,643' 9,863' 9,523' 6 Payable in foreign currencies 2,658 2,208 1,872' 2,134 1,886 1,955' 1,839' 1,946' 7 Commercial liabilities 16,461 16,446 14,774 15,665 14,950 14,849' 14,521 13,103 8 Trade payables 10,818 9,438 7,765 7,912 7,015 7,005' 7,052 5,854 9 Advance receipts and other liabilities 5,643 7,008 7,009 7,753 7,936 7,843' 7,469 7,249 10 Payable in dollars 15,409 15,423 13,533 14,509 13,936 13,836' 13,593 12,413 11 Payable in foreign currencies 1,052 1,023 1,241 1,156 1,014 1,013' 928 690 By area or country Financial liabilities 12 Europe 6,825 6,501 5,742 7,355 6,697 6,818' 6,118' 55,,991133'' 13 Belgium-Luxembourg 471 505 302 359 428 471 298 351' 14 France 709 783 843 900 910 995 896 865 15 Germany 491 467 502 571 521 489 506 474 16 Netherlands 748 711 621 607 605 590' 613' 597 17 Switzerland 715 792 486 563 514 569 541 566 18 United Kingdom 3,565 3,102 2,839 4,105 3,470 3,397' 3,035' 2,821' 19 Canada 963 746 764 735 825 863 840 850 7,0 Latin America and Caribbean 3,356 2,751 2,596 9,494 7,253 5,086' 3,147' 3,106 71 Bahamas 1,279 904 751 4,090 3,052 1,926' 1,341' 1,107 72 Bermuda 7 14 13 13 11 13 25 10 73 Brazil 22 28 32 25 33 35 29 27 74 British West Indies 1,241 1,027 1,041 4,567 3,271 2,103 1,521 1,734 75 Mexico 102 121 213 237 260 367 25 32 26 Venezuela 98 114 124 124 130 137 3 3 77 Asia 976 1,039 1,424' 1,561 1,662 1,777' 1,555' 1,555' 78 Japan 792 715 991' 1,104 1,174 1,209' 1,033' 965' 29 Middle East oil-exporting countries2 75 169 170 188 151 155' 124' 147 30 Africa 14 17 19 16 16 14 12 14 31 Oil-exporting countries3 0 0 0 0 1 0 0 0 32 AH other4 24 12 27' 31 35 41' 31' 3C Commercial liabilities 33 Europe 3,770 3,831 3,245 3,415 4,052 4,001' 3,519 33,,448855 34 Belgium-Luxembourg 71 52 62 45 34 48 37 53 35 France 573 598 437 525 430 438 401 425 36 Germany 545 468 427 502 561 622' 590 431 37 Netherlands 220 346 268 265 238 245 272 284 38 Switzerland 424 367 241 253 405 257 233 353 39 United Kingdom 880 1,027 732 794 1,224 1,095' 752 740 40 Canada 897 1,495 1,841 1,840 1,906 1,975 1,727 1,494 41 Latin America and Caribbean 1,044 1,570 1,473 1,705 1,780 1,871 1,717 1,244 42 Bahamas 2 16 1 17 1 7 11 12 43 Bermuda 67 117 67 124 110 114 112 77 44 Brazil 67 60 44 31 68 124 101 90 45 British West Indies 2 32 6 5 8 32 21 11 46 340 436 585 568 641 586 654 449922 47 Venezuela 276 642 432 630 628 636 395 309 48 9,384 8,144 6,741 6,967 5,547 5,285' 5,721 5,259 49 1,094 1,226 1,247 1,235 1,429 1,256 1,241 1,232 50 Middle East oil-exporting countries2'5 7,008 5,503 4,178 4,190 2,364 2,372 2,786 2,3% 51 Africa 703 753 553 691 597 588 765 633 52 Oil-exporting countries3 344 277 167 224 251 233 294 265 53 All other4 664 651 921 1,046 1,068 1,128 1,070 988 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 • March 1986 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 June Sept. Dec. Mar. June 1 Total 36,185 28,725 34,911r 32,478' 30,939' 29,768' 28,633' 26,904' 2 Payable in dollars 32,582 26,085 31,815'' 29,497' 28,148' 27,171' 26,062' 24,276' 3 Payable in foreign currencies 3,603 2,640 3,096 2,982 2,792 2,597 2,571 2,629' By type 4 Financial claims 21,142 17,684 23.78C 21,96c 20,435' 19,122' 18,336' 16,417' 5 Deposits 15,081 13,058 18,496' 16,813' 15,626' 14,489' 14,344' 12,576' 6 Payable in dollars 14,456 12,628 17,993' 16,291' 15,187' 14,069^ 13,847' 12.02C 7 Payable in foreign currencies 625 430 503 522 439 420 497 556' 8 Other financial claims 6,061 4,626 5,284 5,148 4,808 4,633 3,992 3,841' 9 Payable in dollars 3,599 2,979 3,328 3,387 3,116 3,190 2,427 2,361' 10 Payable in foreign currencies 2,462 1,647 1,956 1,761 1,693 1,442 1,565 1,480 11 Commercial claims 15,043 11,041 11,131 10,518' 10,505' 10,646' 10,297 10,487 12 Trade receivables 14,007 9,994 9,721 9,186' 9,012' 9,177' 8,784 9,121 13 Advance payments and other claims.. 1,036 1,047 1,410 1,332' 1,493' 1,47c 1,513 1,367 14 Payable in dollars 14,527 10,478 10,494 9,819' 9,845' 9,912' 9,787 9,895 15 Payable in foreign currencies 516 563 637 699 659 735 510 592 By area or country Financial claims 16 Europe 4,596 4,873 6,488' 6,564' 5,783' 5,693' 5,725' 5,427' 17 Belgium-Luxembourg 43 15 37 37 15 15 29 15 18 France 285 134 150 151 151 126 92' 49' 19 Germany 224 178 163 166 192 224 196 174' 20 Netherlands 50 97 71 158 62 66 72 37 21 Switzerland 117 107 38 61 64 66 46 16 22 United Kingdom 3,546 4,064 5,817' 5,739' 5,068' 4,795' 5,001' 4,862' 23 Canada 6,755 4,377 5,989' 5,302 4,492 4,006 3,957' 3,747' 24 Latin America and Caribbean 8,812 7,546 10,234' 8,850' 8,987' 8,137' 7,600' 6,397' 25 Bahamas 3,650 3,279 4,771' 3,317' 3,435' 3,282' 3,015' 2,153' 26 Bermuda 18 32 102 11 5 6 4 5 27 Brazil 30 62 53 83 84 100 98 96 28 British West Indies 3,971 3,255 4,206' 4,602' 4,580' 3,985' 3,894' 3,580' 29 Mexico 313 274 293 230 232 215 201 206' 30 Venezuela 148 139 134 124 128 125 101 100 31 Asia 758 698 764 977 900 961 856 639' 32 Japan 366 153 297 321 371 353 509 281 33 Middle East oil-exporting countries2 37 15 4 8 7 13 6 6 34 Africa 173 158 147 158 160 210 101 111 35 Oil-exporting countries3 46 48 55 35 37 85 32 25 36 All other4 48 31 159 109 113 114 97 95 Commercial claims 5,405 3,826 3,670 3,573' 3,618' 3,801' 3,360 3,707 37 Europe 234 151 135 142 128 165' 149 224 38 Belgium-Luxembourg 776 474 459 408 411 440 375 410 39 France 561 357 349 473' 368' 374 358 373 40 Germany 299 350 334 300' 298' 335' 340 301 41 Netherlands 431 360 317 250 289 271 253 376 42 Switzerland 985 811 809 812 949' 1,063 885 952 43 United Kingdom 44 Canada 967 633 829 933 1,026 1,021 1,248 1,065 45 Latin America and Caribbean 3,479 2,526 2,695 2,089' 2,027' 2,052' 1,973 2,137 46 Bahamas 12 21 8 4 14 8 9 11 47 Bermuda 223 261 190 89 88 115 164 65 48 Brazil 668 258 493 310 219 214 210 193 49 British West Indies 12 12 7 8 10 7 6 6 50 Mexico 1,022 775 884 577 595 583 493 616 51 Venezuela 424 351 272 241 245 206 192 224 52 Asia 3,959 3,050 3,063 3,091 2,901' 3,073' 2,985 2,720 53 Japan 1,245 1,047 1,114 1,183 1,089 1,191 1,154 968 54 Middle East oil-exporting countries2 905 751 737 710 703 668 666 593 55 Africa 772 588 588 536 595 470 510 522 56 Oil-exporting countries3 152 140 139 128 135 134 141 139 57 All other4 461 417 286 297 338 229 221 337 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 Jan.- May June July Aug. Sept. Oct. Nov.? Nov. U.S. corporate securities STOCKS 1 Foreign purchases 69,770 60,704 70,655 6,520 6,471 7,181 6,366 4,802 7,232 8,399 2 Foreign sales 64,360 63,628 67,946 6,423 6,069 6,522 5,721 4,690 6,560 7,123 3 Net purchases, or sales (-) 5,410 -2,924 2,710 97 402 659 645 112 673 1,276 4 Foreign countries 5,312 -3,039 2,788 140 404 559 644 163 644 1,365 5 Europe 3,979 -2,975 645 -285 72 336 364 170 554 950 6 France -97 -405 -336 17 26 -3 -41 -120 -82 -85 7 Germany 1,045 -50 447 39 5 126 76 29 235 270 8 Netherlands -109 -315 -237 -51 -86 42 18 25 33 47 9 Switzerland 1,325 -1,490 -347 -90 49 38 -28 -87 125 107 10 United Kingdom 1,799 -647 879 -219 49 104 295 293 210 581 11 Canada 1,151 1,672 262 7 -62 66 68 34 -31 -70 17 Latin America and Caribbean 529 493 1,396 247 132 119 109 -35 78 243 13 Middle East1 -808 -2,006 11 53 106 53 35 54 8 -174 14 Other Asia 395 -372 338 101 174 -23 58 -26 -16 384 15 Africa 42 -23 12 -8 13 25 9 0 -4 -1 16 Other countries 24 171 123 25 -31 -16 1 -34 55 32 17 Nonmonetary international and regional organizations 98 115 -78 -44 -1 100 1 --5511 2288 --8899 BONDS2 18 Foreign purchases 24,000 39,853 77,843 6,789 5,319 8,502 5,547 7,482 7,401 12,501 19 Foreign sales 23,097 26,612 38,967 3,697 3,943 4,254 3,741 3,632 2,783 4,294 20 Net purchases, or sales (—) 903 13,241 38,876 3,092 1,376 4,249 1,806 3,850 4,618 8,207 21 Foreign countries 888 12,944 38,521 3,230 1,243 3,597 2,118 4,176 4,772 7,757 77 Europe 909 11,793 34,725 2,752 1,199 3,210 1,834 3,949 3,665 6,769 73 -89 207 215 0 -35 -2 169 42 8 -15 24 Germany 344 1,731 1,605 -17 13 182 103 159' 308 897 75 Netherlands 51 93 210 -11 -9 -2 25 -4 0 158 76 Switzerland 583 644 2,979 71 93 492 243 154 249 804 77 United Kingdom 434 8,520 28,891 2,398 1,039 2,391 1,368 3,519 3,037 4,837 78 Canada 123 -76 183 44 4 -4 -24 -31 42 110 79 Latin America and Caribbean 100 390 426 178 27 39 -81 -64 81 124 30 Middle East1 -1,161 -1,026 -2,208 -119 -507 -265 -80 -187 11 -215 31 Other Asia 865 1,862 5,367 372 518 610 465 508 966 975 37 Africa 0 1 7 1 0 3 1 0 1 0 33 Other countries 52 0 20 2 1 3 3 1 6 -5 34 Nonmonetary international and regional organizations 15 297 355 -138 133 651 -312 --332266 --115544 445500 Foreign securities 35 Stocks, net purchases, or sales (-) -3,765 -1,219 -3,491 100 -174 -550 -213 -221' -72 -284 36 Foreign purchases 13,281 14,597 18,265 1,764 1,632 1,580 1,689 1,564' 2,172 2,171 37 Foreign sales 17,046 15,816 21,756 1,665 1,806 2,130 1,902 1,785' 2,244 2,455 38 Bonds, net purchases, or sales (-) -3,239 -4,131 -3,762 -1,059 -261 -589 305 -420' -691 182 39 Foreign purchases 36,333 57,312 74,622 7,448 6,691 7,147 6,959 6,84c 8,538 8,903 40 Foreign sales 39,572 61,443 78,384 8,507 6,952 7,736 6,654 7,26C 9,229 8,721 41 Net purchases, or sales (—), of stocks and bonds .... -7,004 -5,350 -7,253 -959 -434 -1,139 92 -641' -763 -102 42 Foreign countries -6,559 -4,961 -7,981 -1,123 -386 -1,368 302 -876' -751 -325 43 Europe -5,492 -8,740 -9,368 -2,024 -680 -1,185 -258 -764 -579 -1,037 44 Canada -1,328 404 -1,408 -96 -157 -783 36 2' -27 14 45 Latin America and Caribbean 1,120 2,472 1,763 810 73 150 178 191 48 32 46 -855 1,252 1,112 201 353 418 387 -322' -193 832 47 Africa 141 -107 33 2 13 18 9 -2 -5 37 48 Other countries -144 -242 -114 -15 14 13 -51 19 6 -204 49 Nonmonetary international and regional organizations -445 -389 728 164 -49 229 -210 223355 --1133 222233 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 • March 1986 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1985 1985 11998833 11998844 Country or area N Ja o n v . . - May June July Aug. Sept. Oct. Nov.P Transactions, net purchases or sales (-) during period1 1 Estimated total2 3,693 21,447 23,359 3,069 5,757 4,786 -3,345 6,533' -653 2,545 2 Foreign countries2 3,162 16,444 26,226 4,337 5,757 5,364 1,027 3,988' -122 2,309 3 Europe2 6,226 11,081 3,866 686 1,025 975 953 958 -701 -910 4 Belgium-Luxembourg -431 289 521 101 17 21 92 49 10 29 5 Germany2 2,450 2,958 1,619 838 415 725 937 294 17 -102 6 Netherlands 375 454 358 -73 10 148 386 127 -126 155 7 Sweden 170 46 1,017 157 775 119 -89 -33 -41 -42 8 Switzerland2 -421 635 906 -135 143 -21 72 25 116 -124 9 United Kingdom 1,966 5,234 -2,170 -865 -96 -761 -82 283 -735 -526 10 Other Western Europe 2,118 1,466 1,615 663 -239 743 -363 214 58 -301 11 Eastern Europe 0 0 0 0 0 0 0 0 0 0 12 Canada 699 1,526 -145 113 6 7 -144 106 138 -394 13 Latin America and Caribbean -212 1,413 4,168 581 205 156 524 562 125 735 14 Venezuela -124 14 275 -9 80 0 33 2 91 72 15 Other Latin America and Caribbean 60 528 2,031 463 123 -7 95 556 110 367 16 Netherlands Antilles -149 871 1,862 126 2 163 397 4 -76 296 17 -3,535 2,377 17,947 2,891 4,516 4,307 -416 2,225' 244 2,928 18 Japan 2,315 6,062 17,959 1,060 2,666 3,752 875 1,884' 1,630 3,039 19 3 -67 103 57 10 10 -1 0 9 1 20 All other -17 114 287 9 -6 -91 111 137 63 -51 21 Nonmonetary international and regional organizations 535 5,001 -2,867 -1,268 -1 -577 -4,372 2,545 -530 236 22 International 218 4,610 -3,372 -1,057 -105 -219 -4,400 1,883 -430 -3 23 Latin American regional 0 0 10 5 0 0 0 -1 0 8 MEMO 24 Foreign countries2 3,162 16,444 26,226 4,337 5,757 5,364 1,027 3,988' -122 2,309 25 Official institutions 779 515 5,714 3,530 2,713 1,788 104 1,064 -1,209 -269 26 Other foreign2 2,382 15,930 20,511 807 3,045 3,575 923 2,924' 1,087 2,578 Oil-exporting countries 27 Middle East3 -5,419 6,277 -2,374 52 1,422 -1 -1,132 -838 -818 -467 28 Africa4 -1 -101 5 0 0 0 0 0 4 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 Dec. 31, 1985 Rate on Dec. 31, 1985 Rate on Dec. 31, 1985 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 4.0 Aug. 1985 France1 8.75 Nov. 1985 Norway 8.0 June 1983 Belgium. 9.75 Dec. 1985 Germany, Fed. Rep. of 4.0 Aug. 1984 Switzerland 4.0 Mar. 1983 Brazil... 49.0 Mar. 1981 Italy 15.0 Nov. 1985 United Kingdom2. Canada.. 9.49 Dec. 1985 Japan 5.0 Oct. 1983 Venezuela 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 11998833 11998844 11998855 June July Aug. Sept. Oct. Nov. Dec. 1 Eurodollars 9.57 10.75 8.27 7.60 7.89 8.02 8.14 8.08 8.02 7.99 2 United Kingdom 10.06 9.91 12.16 12.38 12.01 11.42 11.49 11.49 11.50 11.66 3 Canada 9.48 11.29 9.64 9.58 9.33 9.16 9.10 8.73 8.85 9.25 4 Germany 5.73 5.96 5.40 5.66 5.31 4.75 4.64 4.77 4.82 4.80 5 Switzerland 4.11 4.35 4.92 5.14 5.07 4.64 4.59 4.53 4.07 4.13 6 Netherlands 5.58 6.08 6.29 6.58 6.29 5.80 5.72 5.89 5.90 5.79 7 France 12.44 11.66 9.91 10.18 9.97 9.79 9.57 9.29 8.95 8.92 8 Italy 18.95 17.08 14.86 15.00 14.37 14.36 13.95 14.16 14.29 14.71 9 Belgium 10.51 11.41 9.60 8.96 8.95 9.50 9.33 8.97 8.66 9.14 10 Japan 6.49 6.32 6.47 6.30 6.29 6.30 6.31 6.47 7.29 7.36 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 • March 1986 3.28 FOREIGN EXCHANGE RATES Currency units per dollar 1985 CCoouunnttrryy//ccuurrrreennccyy 11998833 11998844 11998855 July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar1 90.14 87.937 70.026 69.95 70.70 68.96 70.25 67.74 68.11 2 Austria/schilling 17.968 20.005 20.676 20.446 19.632 19.949 18.569 18.236 17.658 3 Belgium/franc 51.121 57.749 59.336 58.626 56.543 57.395 53.618 52.474 51.251 4 Brazil/cruzeiro 573.27 1841.50 6205.10 6236.19 6714.00 7453.33 8203.57 8913.95 9915.71 5 Canada/dollar 1.2325 1.2953 1.3658 1.3526 1.3575 1.3703 1.3667 1.3765 1.3954 6 China, P.R./yuan 1.9809 2.3308 2.9434 2.8809 2.9093 2.9722 3.0782 3.2086 3.2095 7 Denmark/krone 9.1483 10.354 10.598 10.456 10.1459 10.2906 9.5880 9.3918 9.1221 8 Finland/markka 5.5636 6.0007 6.1971 6.0798 5.9464 6.0140 5.6836 5.5709 5.4824 9 France/franc 7.6203 8.7355 8.9799 8.8513 8.5323 8.6599 8.0641 7.9095 7.6849 10 Germany/deutsche mark 2.5539 2.8454 2.9419 2.9083 2.7937 2.8381 2.6446 2.5954 2.5122 11 Greece/drachma 87.895 112.73 138.40 131.75 131.75 136.74 145.74 153.037 150.186 12 Hong Kong/dollar 7.2569 7.8188 7.7911 7.7527 7.7906 7.8043 7.7908 7.8042 7.8064 13 India/rupee 10.1040 11.348 12.332 12.031 11.898 12.126 12.033 12.1010 12.1524 14 Ireland/pound1 124.81 108.64 106.62 107.79 111.43 109.55 117.00 119.19 122.48 15 Italyflira 1519.30 1756.10 1908.90 1900.33 1873.51 1903.42 1785.43 1753.72 1713.50 16 Japan/yen 237.55 237.45 238.47 241.14 237.46 236.53 214.68 204.07 202.79 17 Malaysia/ringgit 2.3204 2.3448 2.4806 2.4696 2.4644 2.4841 2.4529 2.4341 2.4291 18 Netherlands/guilder 2.8543 3.2083 3.3184 3.2732 3.1429 3.1921 2.9819 2.9230 2.8293 19 New Zealand/dollar1 66.790 57.837 49.752 49.826 53.564 53.285 56.931 57.230 52.633 20 Norway/krone 7.3012 8.1596 8.5933 8.4338 8.2487 8.3337 7.9099 7.8076 7.6524 21 Portugal/escudo 111.610 147.70 172.07 169.77 167.34 172.5 164.59 162.963 160.798 22 Singapore/dollar 2.1136 2.1325 2.2008 2.2109 2.2191 2.2268 2.1387 2.1084 2.1213 23 South Africa/rand1 89.85 69.534 45.57 51.07 43.07 39.49 38.38 37.57 37.05 24 South Korea/won 776.04 807.91 861.89 876.46 885.09 847.46 894.49 893.35 893.13 25 Spain/peseta 143.500 160.78 169.98 167.97 164.49 168.91 161.712 159.658 156.052 26 Sri Lanka/rupee 23.510 25.428 27.187 27.327 27.377 27.430 27.421 27.449 27.420 27 Sweden/krona 7.6717 8.2706 8.6031 8.4703 8.3106 8.3907 7.9557 7.8127 7.6817 28 Switzerland/franc 2.1006 2.3500 2.4551 2.4060 2.2962 2.3749 2.1692 2.1306 2.1042 29 Taiwan/dollar n.a. 39.633 39.889 40.136 40.501 40.465 40.195 39.981 39.906 30 Thailand/baht 22.991 23.582 27.193 27.053 26.889 27.050 26.569 26.315 26.715 31 United Kingdom/pound1 151.59 133.66 129.74 138.07 138.40 136.42 142.15 143.96 144.47 MEMO 32 United States/dollar2 125.34 138.19 143.01 140.94 137.55 139.14 130.71 128.08 125.80 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, 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 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1985 January 1986 A70 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 Terms of lending at commercial banks, November 1985 March 1986 A70 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • March 1986 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 4-8, 1985' A. Commercial and Industrial Loans Weighted Loan rate (percent) AAmmoouunntt AAvveerraaggee average Loans Partici- Characteristics ( o t f o h f o d u l o o s l a a la n n r s d s s ) ( o t f h o d s u o iz s l e a la n r d s s ) mmaattuurriittyy22 W av e e ig ra h g te e d SSttaannddaarrdd q I u n a t r e t r i - le c m o ( a m p d e m e r c i u t e m n n d t e ) e n r t (p p l e o a r t a c i n e o s n n t ) Days effective3 range5 ALL BANKS 1 Overnight6 12,417,025 3,397 * 9.11 .15 8.87-9.28 64.8 7.1 2 One month and under 7,179,094 428 17 9.52 .28 8.87-9.55 71.6 11.6 3 Fixed rate 5,594,603 437 17 9.47 .43 8.86-9.44 67.4 12.4 4 Floating rate 1,584,491 398 16 9.70 .32 8.98-9.94 86.2 8.9 5 Over one month and under a year 7,640,986 78 142 10.46 .30 9.21-11.07 67.5 10.8 6 Fixed rate 3,637,434 58 117 10.52 .59 9.08-11.18 63.3 10.8 7 Floating rate 4,003,551 111 165 10.41 .24 9.37-11.02 71.3 10.8 8 Demand7 4,833,914 172 * 10.12 .08 9.25-11.02 81.5 3.6 9 Fixed rate 858,4% 187 * 9.39 .23 8.84-9.65 79.1 .3 10 Floating rate 3,975,418 169 * 10.28 .16 9.64-11.02 82.0 4.3 11 Total short term 32,071,018 218 45 9.68 .21 8.95-9.94 69.5 8.5 12 Fixed rate (thousands of dollars) . 21,651,7% 261 26 9.44 .47 8.87-9.44 64.8 7.4 13 1-24 453,990 7 101 13.58 .38 12.07-14.65 21.9 1.0 14 25-49 320,804 35 184 12.58 .38 11.07-13.46 31.6 12.8 15 50-99 177,245 66 113 12.40 .59 10.47-13.38 29.3 1.4 16 100-499 651,645 165 110 12.22 .54 10.36-13.31 30.3 9.1 17 500-999 224,162 673 48 9.87 .36 9.07-10.52 60.6 5.8 18 1000 and over 19,823,950 7,762 18 9.18 .04 8.86-9.35 67.9 7.5 19 Floating rate (thousands of dollars). 10,419,222 163 106 10.16 .18 9.19-11.02 79.1 10.6 20 1-24 300,037 9 146 11.73 .17 11.02-12.19 66.9 .8 21 25-49 324,565 34 163 11.61 .17 10.79-12.13 60.0 1.6 22 50-99 502,055 63 146 11.31 .13 10.47-11.85 66.0 2.5 23 100-499 1,888,834 191 121 10.92 .15 9.96-11.57 66.0 12.6 24 500-999 %9,8% 655 164 10.54 .12 9.92-11.02 70.9 7.7 25 1000 and over 6,433,835 3,999 88 9.65 .22 9.06-9.% 86.7 12.0 Months 26 Total long term 5,824,912 219 50 10.31 .51 9.29-10.92 76.5 16.8 27 Fixed rate (thousands of dollars) , 1,486,899 89 64 10.84 1.03 9.17-10.94 77.2 9.7 28 1-99 180,685 12 63 16.49 1.41 13.30-17.23 12.0 .5 29 100-499 117,088 153 136 12.09 .32 11.07-12.75 31.0 6.0 30 500-999 61,707 697 56 10.89 .85 9.92-12.01 65.6 20.0 31 1000 and over 1,127,420 6,0646 57 9.81 .59 9.15-10.87 93.1 11.0 32 Floating rate (thousands of dollars), 4,338,013 439 45 10.12 .27 9.32-10.75 76.2 19.2 33 1-99 209,390 29 32 11.34 .08 10.75-12.00 54.8 1.5 34 100-499 424,802 217 42 11.39 .25 10.47-12.68 51.5 31.3 35 500-999 199,698 667 44 10.60 .27 9.84-11.02 80.1 13.5 36 1000 and over 3,504,124 6,726 47 9.87 .17 9.25-10.11 80.3 19.1 Loan rate (percent) DDaayyss PPrriimmee rraattee99 Effective3 Nominal8 LOANS MADE BELOW PRIME'0 37 Overnight6 11,745,734 9,922 * 9.04 8.65 9.50 64.3 7.5 38 One month and under 5,814,114 3,214 15 9.08 8.70 9.52 76.7 12.5 39 Over one month and under a year 3,388,756 359 132 9.31 8.% 9.75 80.1 13.6 40 Demand7 1,792,704 1,514 * 9.05 8.72 9.53 85.3 2.5 41 Total short term 22,741,308 1,669 26 9.09 8.72 9.55 71.5 9.3 42 Fixed rate 18,509,780 1,612 19 9.08 8.71 9.54 66.3 8.1 43 Floating rate 4,231,528 1,975 71 9.13 8.76 9.59 94.2 14.6 Months 44 Total long term 2,081,591 1,876 46 9.17 8.46 9.59 93.7 23.2 45 Fixed rate 605,799 839 35 9.13 7.59 9.65 91.9 6.7 46 Floating rate .. 1,475,792 3,806 50 9.19 8.82 9.57 94.5 30.0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A71 4.23 Continued A. Continued Weighted Loan rate (percent) Amount Average LLooaannss PPaarrttiiccii-of loans size made under pation CChhaarraacctteerriissttiiccss (thousands (thousands Weighted Inter- commitment loans of dollars) of dollars) average quartile (percent) (percent) Days effective3 range5 48 LARGE BANKS 1 Overnight6 10,303,415 10,453 * 9.11 .02 8.87-9.28 66.7 8.6 2 One month and under 5,453,598 2,398 16 9.34 .11 8.91-9.44 78.2 9.7 Fixed rate 4,319,862 3,708 17 9.31 .12 8.91-9.44 74.5 9.7 4 Floating rate 1,133,736 1,023 16 9.47 .08 8.97-9.68 92.1 9.6 Over one month and under a year ... 3,702,065 491 124 9.76 .08 9.10-10.20 8888..11 88..88 6 Fixed rate 2,132,404 1,191 94 9.61 .24 9.00-9.92 8899..55 1100..77 7 Floating rate 1,569,661 273 165 9.98 .13 9.18-10.65 86.2 6.3 8 Demand7 2,334,279 314 * 10.09 .03 9.31-10.75 88.8 2.5 9 Fixed rate 355,856 414 * 9.65 .09 8.84-9.65 96.5 ..11 10 Floating rate 1,978,423 300 * 10.17 .10 9.38-10.75 87.4 33..00 11 Total short term 21,793,356 1,195 29 9.39 .02 8.95-9.61 75.6 8.3 12 Fixed rate (thousands of dollars) .... 16,421,578 3,487 18 9.23 .01 8.90-9.42 71.5 7.1 N 1-24 13,379 9 95 12.19 .10 10.52-13.31 58.4 .3 14 25-49 11,578 32 103 11.76 .11 10.52-12.68 63.2 .7 15 50-99 22,038 66 85 11.33 .06 10.52-12.07 65.9 1.4 16 100-499 113,573 215 67 10.51 .09 9.84-11.12 74.5 1.8 17 500-999 81,704 664 50 9.83 .28 9.02-10.56 62.6 2.4 18 1000 and over 16,179,306 8,581 17 9.21 .01 8.90-9.41 71.6 7.2 19 Floating rate (thousands of dollars) 5,371,778 397 82 9.85 .07 9.09-10.47 87.9 11.7 70 1-24 54,047 10 136 11.74 .01 11.02-12.19 77.0 2.0 ?1 25-49 68,548 34 129 11.40 .03 10.75-12.13 73.2 3.5 V 50-99 126,176 65 142 11.16 .00 10.47-11.58 74.8 3.5 n 100-499 551,724 196 132 10.76 .02 9.94-11.07 77.7 4.7 74 500-999 384,765 670 135 10.56 .03 9.92-11.02 80.7 6.1 25 1000 and over 4,186,518 4,708 71 9.58 .07 9.06-9.92 90.7 13.7 Months 26 Total long term 4,065,691 923 49 9.95 .10 9.29-10.52 84.3 11.3 27 Fixed rate (thousands of dollars) .... 1,030,810 1,333 61 10.00 .14 9.25-10.87 93.4 10.6 78 1-99 9,932 22 47 12.68 .28 11.30-13.77 27.6 1.9 29 100-499 30,643 212 54 11.66 .06 10.47-12.47 64.5 22.8 30 500-999 32,954 706 56 10.40 .17 9.92-11.00 76.7 17.2 31 1000 and over 957,282 6,871 61 9.90 .22 9.17-10.87 95.6 10.0 32 Floating rate (thousands of dollars).... 3,034,880 835 45 9.93 .09 9.29-10.35 81.2 11.6 33 1-99 81,882 34 23 10.91 .00 10.75-11.02 86.0 1.1 34 100-499 152,105 202 35 10.98 .12 10.20-11.19 81.2 9.7 35 500-999 111,664 685 41 10.56 .25 9.84-11.02 97.1 17.2 36 1000 and over 2,689,230 7,854 46 9.82 .05 9.29-9.96 80.4 11.8 Loan rate (percent) DDaayyss PPPrrriiimmmeee rrraaattteee999 Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 9,912,650 11,181 + 9.07 8.67 9.50 66.6 8.9 38 One month and under 4,659,844 5,204 15 9.10 8.73 9.52 80.9 9.7 39 Over one month and under a year ... 2,241,424 3,876 123 9.16 8.82 9.51 92.1 11.6 40 Demand7 884,640 3,554 * 9.17 8.81 9.51 94.4 .0 41 Total short term 17,698,558 6,783 21 9.09 8.71 9.51 75.0 9.0 42 Fixed rate 14,878,657 7,459 15 9.08 8.70 9.50 70.9 7.4 43 Floating rate 2,819,901 4,589 60 9.15 8.77 9.56 96.7 17.6 Months 44 Total long term 1,530,176 5,880 46 9.16 8.84 9.53 96.4 16.9 45 Fixed rate 451,444 4,271 37 9.16 8.97 9.54 94.4 2.4 46 Floating rate 1,078,732 6,981 49 9.16 8.79 9.53 97.2 23.0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • March 1986 4.23 TERMS OF LENDING AT COMMERCIAL BANKS SURVEY of Loans Made, November 4-8, 19851 -Continued A. Commercial and Industrial Loans—Continued Weighted Loan rate (percent) Amount AAvveerraaggee average Loans PPaarrttiiccii-- Characteristics ( o t f o h f o d u l o o s l a a la n n r s d s s ) ( o t f h o d s u o iz s l e a la n r d s s ) mmaattuurriittyy22 W av e e ig ra h g te e d Standard q I u n a t r e t r i - le c m o ( a m p d e m e r c i u t e m n n d t e ) e n r t (p p l e o a r t a c i n e o s n n t ) Days effective3 range5 OTHER BANKS 1 Overnight6 2,113,610 792 * 9.10 .15 8.80-9.21 55.3 .1 2 One month and under 1,725,496 119 18 10.09 .26 8.83-10.26 50.7 17.6 3 Fixed rate 1,274,742 110 18 10.02 .42 8.83-9.93 43.4 21.3 4 Floating rate 450,755 157 18 10.28 .31 9.03-11.03 71.3 7.2 5 Over one month and under a year 3,938,921 43 158 11.12 .29 9.84-12.13 48.2 12.7 6 Fixed rate 1,505,030 25 149 11.81 .53 9.33-13.38 26.1 11.0 7 Floating rate 2,433,891 81 164 10.68 .20 9.84-11.55 61.8 13.7 8 Demand7 2,499,635 121 * 10.16 .08 9.16-11.02 74.7 4.6 9 Fixed rate 502,640 135 * 9.21 .21 8.62-9.38 66.7 .4 10 Floating rate 1,996,995 118 * 10.39 .13 9.84-11.02 76.7 5.6 11 Total short term 10,277,662 80 85 10.30 .21 9.00-11.02 56.5 8.9 12 Fixed rate (thousands of dollars) . 5,230,218 67 53 10.11 .47 8.83-10.25 43.8 8.5 13 1-24 440,610 7 101 13.62 .36 12.13-14.65 20.8 1.0 14 25-49 309,227 35 186 12.61 .37 11.24-13.46 30.4 13.3 15 50-99 155,207 66 116 12.55 .58 10.46-13.38 24.1 1.4 16 100-499 538,072 157 116 12.58 .53 10.69-15.00 20.9 10.6 17 500-999 142,458 678 47 9.89 .22 9.07-10.52 59.4 7.8 18 1000 and over 3,644,643 5,451 22 9.01 .04 8.73-9.16 51.3 9.0 19 Floating rate (thousands of dollars). 5,047,444 101 134 10.49 .17 9.69-11.07 69.7 9.5 20 1-24 245,990 9 148 11.73 .17 11.02-12.19 64.7 .5 21 25-49 256,016 34 170 11.67 .16 10.79-12.13 56.4 1.1 22 50-99 375,880 63 147 11.36 .13 10.47-12.01 63.0 2.2 23 100-499 1,337,111 189 118 10.99 .15 9.96-11.57 61.2 15.9 24 500-999 585,130 646 179 10.53 .11 9.92-11.07 64.4 8.7 25 1000 and over 2,247,317 3,123 123 9.77 .21 9.03-10.24 79.3 9.0 Months 26 Total long term 1,759,221 79 53 11.13 .50 9.32-12.13 58.3 29.4 27 Fixed rate (thousands of dollars) 456,089 29 72 12.76 1.02 9.05-13.31 40.5 7.7 28 1-99 170,753 11 64 16.71 1.38 13.31-17.23 11.1 .5 29 100-499 86,445 139 165 12.24 .32 11.57-12.75 19.1 .0 30 500-999 28,753 688 56 11.45 .83 9.92-12.68 53.0 23.2 31 1000 and over 170,138 3,652 36 9.27 .55 8.31-9.82 78.8 16.3 32 Floating rate (thousands of dollars) 1,303,133 209 46 10.56 .25 9.48-11.46 64.6 37.0 33 1-99 127,508 27 38 11.62 .08 11.02-12.13 34.7 1.8 34 100-499 272,697 227 46 11.63 .22 10.92-12.68 34.9 43.4 35 500-999 88,034 646 48 10.65 .11 9.92-11.46 58.5 8.9 36 1000 and over 814,894 4,563 48 10.03 .17 9.07-10.75 79.9 43.4 Loan rate (percent) DDaayyss PPrriimmee rraattee99 Effective3 Nominal8 LOANS MADE BELOW PRIME10 37 Overnight6 1,833,085 6,167 8.93 8.55 9.50 51.4 .1 38 One month and under 1,154,270 1,264 17 8.97 8.61 9.52 60.0 23.8 39 Over one month and under a year 1,147,333 129 151 9.59 9.24 10.22 56.6 17.6 40 Demand7 908,063 971 * 8.93 8.63 9.54 76.5 4.8 41 Total short term 5,042,750 458 47 9.09 8.73 9.68 59.1 10.4 42 Fixed rate 3,631,123 383 33 9.08 8.73 9.68 47.4 11.1 43 Floating rate 1,411,627 924 98 9.10 8.75 9.66 89.3 8.5 Months 44 Total long term 551,415 649 46 9.21 7.42 9.77 86.4 40.5 45 Fixed rate 154,355 251 28 9.04 3.57 9.95 84.6 19.1 46 Floating rate .. 397,059 1,703 53 9.27 8.91 9.70 87.1 48.8 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A73 4.23 Continued B. Construction and Land Development Loans Loan rate (percent) AAmmoouunntt AAvveerraaggee WWeeiigghhtteedd LLooaannss PPaarrttiiccii-- CChhaarraacctteerriissttiiccss ooff llooaannss ssiizzee aavveerraaggee mmaaddee uunnddeerr ppaattiioonn (( oo tt ff hh oo dd uu oo ss llll aa aa nn rr dd ss ss )) (( oo tt ff hh oo dd uu oo ss llll aa aa nn rr dd ss)) ss (( mm mm aa oo tt nn uu tt nn hh tt ss yy )) 22 W e a f v f e e e i c g r t a h i g t v e e e d 3 St e a r n ro da r4 r d q r I u a n a n t r g e t r i e - l 5 e ccoo (( mm ppee mm rrcc iitt ee mm nntt ee )) nn tt ((pp ll ee oo rr aa cc nn ee ss nn tt)) Total 1 Total 2,094,476 134 12 11.28 .65 10,13-12.19 77.4 7.0 2 Fixed rate (thousands of dollars) .... 788,004 97 4 11.37 1.12 10.13-10.19 85.9 9.1 1-24 37,714 7 8 15.58 1.13 13.88-16.08 28.5 .0 4 25-49 75,263 35 9 17.08 1.30 13.81-21.60 53.4 .0 50-99 56,189 70 12 14.21 .42 14.20-14.94 54.8 1.0 6 100-499 9,091 224 15 11.45 .45 10.93-12.13 60.3 .0 7 500 and over 609,746 8,994 2 10.14 .05 10.13-10.13 96.7 11.6 8 Floating rate (thousands of dollars) .. 1,306,473 174 18 11.22 .26 10.75-12.19 72.3 5.7 9 1-24 28,127 10 7 11.54 .13 11.02-12.13 87.8 3.6 10 25-49 56,580 34 10 11.34 .09 11.07-11.30 68.2 25.1 11 50-99 84,287 69 10 12.01 .16 11.30-13.52 83.6 2.3 1? 100-499 204,722 186 21 11.51 .11 11.02-12.19 63.9 5.2 13 500 and over 932,755 1,460 20 11.07 .38 10.20-12.19 72.8 5.1 By type of construction 14 Single family 423,851 42 22 12.61 1.27 10.75-12.75 6666..33 .8 15 Multifamily 151,141 103 14 12.08 .50 10.79-13.52 62.4 1.7 16 Nonresidential 1,519,484 382 8 10.83 .24 10.13-11.57 82.0 9.3 Total 1 Total 927,912 947 9 10.46 .01 10.13-10.75 95.0 8.5 7 Fixed rate (thousands of dollars) .... 600,685 3,332 2 10.11 .05 10.13-10.13 97.2 11.9 3 1-24 925 11 10 12.45 .32 12.13-13.24 74.3 .0 4 25-49 * * * * * * * * 50-99 * * * * * * * * 6 100-499 * * * * * * 7 500 and over 595,229 10,658 2 10.09 .05 10.13-10.13 97.3 11.9 8 Floating rate (thousands of dollars) .. 327,227 409 22 11.10 .39 10.75-11.57 91.6 2.3 9 1-24 3,051 11 8 11.49 .07 11.02-11.57 91.6 3.2 10 25-49 4,092 34 11 11.46 .00 11.02-11.85 84.2 6.6 11 50-99 6,962 72 11 11.63 .14 U.02-12.13 85.7 5.2 1? 100-499 49,039 229 14 11.24 .15 11.02-11.57 93.7 4.4 13 500 and over 264,083 3,126 24 11.05 .51 9.92-11.57 91.5 1.8 By type of construction 14 Single family 188,998 411 27 11.09 .57 99..9922--1122..1133 9955..99 11..22 15 Multifamily 20,305 160 14 11.02 .07 10.50-11.46 59.4 8.0 16 Nonresidential 718,609 1,825 4 10.28 .09 10.13-10.13 96.1 10.4 Total 1 Total 1,166,564 80 16 11.93 .75 10.95-12.19 63.2 5.8 2 Fixed rate (thousands of dollars) .... 187,318 24 13 15.42 1.31 13.52-16.06 49.7 .0 3 1-24 36,789 7 8 15.66 1.27 13.88-16.08 27.3 .0 4 25-49 74,991 35 9 17.09 1.35 13.81-21.60 53.3 .0 5 50-99 54,941 70 12 14.27 .44 14.20-14.94 54.6 .0 6 100-499 6,080 205 19 11.63 .43 10.93-12.69 40.7 .0 7 500 and over * * * * * * * 8 Floating rate (thousands of dollars) .. 970,246 146 16 11.26 .21 10.90-12.19 65.8 6.9 9 1-24 25,076 10 7 11.54 .14 11.02-12.13 87.3 3.7 10 25-49 52,488 34 10 11.33 .10 11.07-11.30 66.9 26.6 11 50-99 77,326 69 10 12.04 .17 11.30-13.52 83.4 2.1 1? 100-499 155,683 176 24 11.59 .08 11.02-12.19 54.6 5.4 13 500 and over 668,673 1,206 17 11.08 .26 10.47-12.19 65.5 6.3 By type of construction 14 Single family 234,853 24 17 1133..8833 1.39 11.30-14.24 4422..55 .4 15 Multifamily 130,836 98 14 12.25 .59 10.79-13.52 62.9 .7 16 Nonresidential 800,875 223 15 11.32 .27 10.92-12.19 69.3 8.2 For notes see end of table. * Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • March 1986 4.23 TERMS OF LENDING AT COMMERCIAL BANKS SURVEY of Loans Made, November 4-8, 1985'—Continued C. Loans to Farmers" Size class of loans (thousands) Characteristics All sizes $1-9 $10-24 $25-49 $50-99 $100-249 and $ 25 o 0 v er ALL BANKS 1 Amount of loans (thousands of dollars)... 915,981 128,955 139,035 105,925 142,670 159,405 239,991 2 Number of loans 53,274 36,523 10,081 3,053 2,158 1,113 346 3 Weighted average maturity (months)2 8.2 6.1 6.3 5.2 12.1 5.8 11.6 4 Weighted average interest rate (percent)3. 12.27 13.64 12.91 12.79 12.76 12.31 10.62 5 Standard error4 .28 .37 .22 .32 .28 .35 .54 6 Interquartile range5 11.02-13.60 12.50-14.13 12.11-13.70 12.17-13.66 11.96-13.71 11.02-13.61 9.50-11.57 By purpose of loan I Feeder livestock 12.09 13.47 12.74 12.72 12.57 11.53 10.65 8 Other livestock 11.59 13.23 12.73 12.88 12,27 11.41 10.71 9 Other current operating expenses 12.23 13.34 12.97 12.93 13.09 12.33 10.15 10 Farm machinery and equipment 13.71 14.52 13.50 12.97 * * * 11 Other 12.21 13.14 12.35 12.42 12.21 13.15 11.27 Percentage of amount of loans 12 With floating rates 46.1 26.3 38.9 32.1 44.5 53.7 63.0 13 Made under commitment 49.1 25.0 33.8 29.0 41.5 55.1 80.2 By purpose of loan 14 Feeder livestock 22.9 13.3 18.3 47.6 18.2 33.2 15.7 15 Other livestock 7.8 6.3 7.3 3.2 3.0 7.2 14.2 16 Other current operating expenses 40.2 49.1 56.2 26.1 47.3 20.5 41.4 17 Farm machinery and equipment 8.5 25.7 9.8 14.0 * * * 18 Other 20.6 5.6 8.4 9.1 24.4 36.0 28.4 48 LARGE BANKS" 1 Amount of loans (thousands of dollars).. 300,854 7,501 11,062 13,542 23,721 38,090 206,937 2 Number of loans 3,805 1,842 730 394 360 253 226 3 Weighted average maturity (months)2 ... 10.7 5.5 5.5 6.0 4.9 5.8 12.9 4 Weighted average interest rate (percent)3 10.56 12.03 11.61 11.67 11.42 10.87 10.22 5 Standard error4 .25 .16 .09 .16 .13 .12 .32 6 Interquartile range5 9.82-11.46 11.25-12.55 10,92-12.19 11.02-12.13 10.92-12.01 9.96-11.58 9.50-11.02 By purpose of loan I Feeder livestock 10.86 11.56 11.11 11.49 11.40 10.94 10.59 8 Other livestock 10.87 12.15 11.65 * 12.06 * 10.71 1 9 0 F O a th rm er m cu a r c r h e i n n t e r o y p e a r n a d ti n e g q u e i x p p m e e n n s t e s 1 1 1 0 . . 3 2 3 8 1 1 2 3 . . 1 6 2 2 11.5 * 9 11.7 * 8 11.4 * 6 10.9 * 4 9.7 * 9 II Other 10.64 11.91 11.88 11.73 11.10 10.46 10.46 Percentage of amount of loans 12 With floating rates 76.1 75.3 87.0 91.2 89.1 95.9 69.4 13 Made under commitment 85.1 76.4 78.0 83.6 88.6 88.5 84.8 By purpose of loan 14 Feeder livestock 17.7 15.2 15.5 26.5 32.3 24.0 14.6 15 Other livestock 14.1 6.8 10.8 * 8.8 * 16.4 1 1 7 6 F O a th rm er m cu a r c r h e i n n t e r o y p e a r n a d ti n e g q u e i x p p m e e n n s t e s 43 1 . . 5 0 5 2 1 . . 8 9 52 * . 9 39 * . 4 39 * . 4 40 * . 1 44 * . 1 18 Other 23.6 23.3 18.1 26.0 18.7 22.4 24.6 OTHER BANKS11 1 Amount of loans (thousands of dollars).. 615,127 121,454 127,972 92,383 118,949 121,315 * 2 Number of loans 49,469 34,682 9,351 2,660 1,798 860 * 3 Weighted average maturity (months)2 ... 7.2 6.1 6.4 5.1 13.3 5.8 * 4 Weighted average interest rate (percent)3 13.11 13.74 13.02 12.95 13.02 12.77 * 5 Standard error4 .12 .33 .19 .27 .25 .32 * 6 Interquartile range5 12.36-13.80 12.53-14.17 12.18-13.70 12.30-13.70 12.50-13.71 12.01-13.96 1 8 B O F y e t h e p e d u r e r r p l i o l v s i e v e s e t s o o t c o f k c l k o an 1 1 2 2 . . 6 5 4 1 1 13 3 . . 6 3 1 0 1 1 2 2 . . 8 8 7 6 12.8 * 2 13.0 * 6 11.6 * 5 * * 1 9 0 O Fa th rm er m cu a r c r h e i n n t e r o y p e a r n a d ti n e g q u e i x p p m e e n n s t e s 1 13 3 . . 8 3 2 1 1 14 3 . . 5 4 2 2 1 13 3 . . 5 0 1 9 13.2 * 0 13.3 * 5 * * * * II Other 13.16 13.53 12.45 12.82 * 1 1 2 3 P M W e a r it c d h e e n f t u l a o n g a d e ti e n r g o c f r o a a m t m e m s o u it n m t en o t f loans 3 31 1 . . 5 4 2 2 3 1 . . 3 8 3 30 4 . . 0 8 2 2 3 1 . . 5 0 3 3 5 2 . . 6 2 4 4 0 4 . . 5 6 * * 14 B F y e e p d u e r r p o li s v e e s o to f c l k o an 25.4 13.2 18.6 50.7 15.4 36.0 * 15 Other livestock 4.7 6.3 7.0 * * * * 16 Other current operating expenses 38.6 48.9 56.5 24.1 48.9 * * 17 Farm machinery and equipment 12.1 27.1 10.4 * * * * 18 Other 19.1 4.5 7.6 6.6 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A75 NOTES TO TABLE 4.23 1. The survey of terms of bank lending to business collects data on gross loan 4. The chances are about two out of three that the average rate shown would extensions made during the first full business week in the mid-month of each differ by less than this amount from the average rate that would be found by a quarter by a sample of 340 commercial banks of all sizes. The sample data are complete survey of lending at all banks. blown up to estimate the lending terms at all insured commercial banks during that 5. The interquartile range shows the interest rate range that encompasses the week. The estimated terms of bank lending are not intended for use in collecting middle 50 percent of the total dollar amount of loans made. the terms of loans extended over the entire quarter or residing in the portfolios of 6. Overnight loans are loans that mature on the following business day. those banks. Construction and land development loans include both unsecured 7. Demand loans have no stated date of maturity. loans and loans secured by real estate. Thus, some of the construction and land 8. The approximate annual interest rate on each loan—without regard to development loans would be reported on the statement of condition as real estate compounding—is calculated from survey data on the stated rate and other terms loans and the remainder as business loans. The survey of terms of bank lending to of the loan; then in computing the average of these approximate nominal rates, farmers covers about 250 banks selected to represent all sizes of banks. Mortgage each loan is weighted by its dollar amount. loans, purchased loans, foreign loans, and loans of less than $1,000 are excluded 9. The prime rate reported by each bank is weighted by the volume of loans from the survey. extended and then averaged. As of March 31, 1985, average domestic assets of 48 large banks were $14.2 10. This survey provides data on gross loan extensions made during one week billion and assets of the smallest of these banks were $2.7 billion. For all insured of each quarter. The proportion of these loan extensions that is made at rates banks total domestic assets averaged $148 million. below prime may vary substantially from the proportion of such loans outstanding 2. The weighted average maturity is calculated only for loans with a stated date in bank loan portfolios. of maturity (that is, loans payable on demand are excluded). In computing the 11. Among banks reporting loans to farmers, most' 'large banks'' had over $500 average, each loan is weighted by its dollar amount. million in total assets, and most "other banks" had total assets below $500 3. The approximate compounded annual interest rate on each loan is calculated million. from survey data on the stated rate and other terms of the loan; then, in computing the average of these approximate effective rates, each loan is weighted by its dollar amount. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH PRESTON MARTIN, Vice Chairman EMMETT J. RICE 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 S. MOORE, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director MICHAEL BRADFIELD, General Counsel EDWARD C. ETTIN, Deputy Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel MICHAEL J. PRELL, Deputy Director RICHARD M. ASHTON, Associate General Counsel JOSEPH S. ZEISEL, Deputy Director OLIVER IRELAND, Associate General Counsel JARED J. ENZLER, Associate Director RICKI R. TIGERT, Assistant General Counsel DAVID E. LINDSEY, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel ELEANOR J. STOCKWELL, Associate Director THOMAS D. SIMPSON, Deputy Associate Director LAWRENCE SLIFMAN, Deputy Associate Director OFFICE OF THE SECRETARY HELMUT F. WENDEL, Deputy Associate Director MARTHA BETHEA, Assistant Director WILLIAM W. WILES, Secretary ROBERT M. FISHER, Assistant Director BARBARA R. LOWREY, Associate Secretary DAVID B. HUMPHREY, Assistant Director JAMES MCAFEE, Associate Secretary 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 SUPERVISION AND REGULATION DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser WILLIAM TAYLOR, Director PETER HOOPER III, Assistant Director WELFORD S. FARMER, Deputy Director1 KAREN H. JOHNSON, Assistant Director FREDERICK R. DAHL, Associate Director RALPH W. SMITH, JR., Assistant Director DON E. KLINE, Associate Director FREDERICK M. STRUBLE, Associate Director WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director RICHARD SPILLENKOTHEN, Deputy Associate Director HERBERT A. BIERN, Assistant Director ANTHONY CORNYN, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlou1i.s fOend .looragn/ from the Federal Reserve Bank of Richmond. Federal Reserve Bank of St. Louis

A77 and Official Staff MARTHA R. SEGER MANUEL H. JOHNSON WAYNE D. ANGELL 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 CHARLES L. HAMPTON, Senior Technical Adviser PORTIA W. THOMPSON, Equal Employment Opportunity DIVISION OF FEDERAL RESERVE Programs Officer BANK OPERATIONS CLYDE H. FARNSWORTH, JR., Director DIVISION OF PERSONNEL ELLIOTT C. MCENTEE, Associate Director DAVID L. ROBINSON, Associate Director DAVID L. SHANNON, Director C. WILLIAM SCHLEICHER, JR., Associate Director JOHN R. WEIS, Assistant Director WALTER ALTHAUSEN, Assistant Director CHARLES W. WOOD, Assistant Director CHARLES W. BENNETT, Assistant Director ANNE M. DEBEER, Assistant Director JACK DENNIS, JR., Assistant Director OFFICE OF THE CONTROLLER EARL G. HAMILTON, Assistant Director WILLIAM E. PASCOE III, Assistant Director GEORGE E. LIVINGSTON, Controller JOHN H. PARRISH, Assistant Director BRENT L. BOWEN, Assistant Controller 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 WILLIAM C. SCHNEIDER, JR., Assistant Director RICHARD C. STEVENS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Bulletin • March 1986 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL MANUEL H. JOHNSON FRANK E. MORRIS ROGER GUFFEY PRESTON MARTIN EMMETT J. RICE KAREN N. HORN THOMAS C. MELZER MARTHA R. SEGER HENRY C. WALLICH STEPHEN H. AXILROD, Staff Director and Secretary JOHN M. DAVIS, Associate Economist NORMAND R.V. BERNARD, Assistant Secretary RICHARD G. DAVIS, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary THOMAS E. DAVIS, Associate Economist MICHAEL BRADFIELD, General Counsel DONALD L. KOHN, Associate Economist JAMES H. OLTMAN, Deputy General Counsel DAVID E. LINDSEY, Associate Economist JAMES L. KICHLINE, Economist ALICIA H. MUNNELL, Associate Economist EDWIN M. TRUMAN, Economist (International) MICHAEL J. PRELL, Associate Economist ANATOL B. BALBACH, Associate Economist CHARLES J. SIEGMAN, Associate Economist PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL ROBERT L. NEWELL, First District HAL C. KUEHL, Seventh District JOHN F. MCGILLICUDDY, Second District WILLIAM H. BOWEN, Eighth District GEORGE A. BUTLER, Third District DEWALT H. ANKENY, JR., Ninth District JULIEN L. MCCALL, Fourth District F. PHILLIPS GILTNER, Tenth District JOHN G. MEDLIN, JR., Fifth District NAT S. ROGERS, Eleventh District BENNETT A. BROWN, 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

A79 and Advisory Councils CONSUMER ADVISORY COUNCIL MARGARET M. MURPHY, Columbia, Maryland, Chairman LAWRENCE S. OKINAGA, Honolulu, Hawaii, Vice Chairman RACHEL G. BRATT, Medford, Massachusetts FREDERICK H. MILLER, Norman, Oklahoma JONATHAN BROWN, Washington, D.C. ROBERT F. MURPHY, Detroit, Michigan MICHAEL S. CASSIDY, New York, New York HELEN NELSON, Mill Valley, California THERESA FAITH CUMMINGS, Springfield, Illinois SANDRA PARKER, Richmond, Virginia NEIL J. FOGARTY, Jersey City, New Jersey JOSEPH L. PERKOWSKI, Centerville, Minnesota STEVEN M. GEARY, Jefferson City, Missouri BRENDA SCHNEIDER, Detroit, Michigan KENNETH HALL, Jackson, Mississippi JANE SHULL, Phildelphia, Pennsylvania STEVEN W. HAMM, Columbia, South Carolina TED L. SPURLOCK, New York, New York ROBERT J. HOBBS, Boston, Massachusetts MEL STILLER, Boston, Massachusetts ROBERT W. JOHNSON, West Lafayette, Indiana CHRISTOPHER J. SUMNER, Salt Lake City, Utah JOHN M. KOLESAR, Cleveland, Ohio EDWARD J. WILLIAMS, Chicago, Illinois EDWARD N. LANGE, Seattle, Washington MERVIN WINSTON, Minneapolis, Minnesota FRED S. MCCHESNEY, Atlanta, Georgia MICHAEL ZOROYA, St. Louis, Missouri THRIFT INSTITUTIONS ADVISORY COUNCIL RICHARD H. DEIHL, Los Angeles, Florida, President MICHAEL R. WISE, Denver, Colorado, Vice President ELLIOTT G. CARR, Harwich Port, Massachusetts JAMIE J. JACKSON, Houston, Texas M. TODD COOKE, Philadelphia, Pennsylvania FRANCES LESNIESKI, East Lansing, Michigan JOHN C. DICUS, Topeka, Kansas DONALD F. MCCORMICK, Livingston, New Jersey HAROLD W. GREENWOOD, JR., Minneapolis, Minnesota HERSCHEL ROSENTHAL, Miami, Florida JOHN A. HARDIN, Rock Hill, South Carolina GARY L. SIRMON, Walla Walla, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 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 THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- address, $2.00 each. TIONS. 1984. 120 pp. FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY ANNUAL REPORT. UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or address, $1.50 each. $2.00 each in the United States, its possessions, Canada, THE BANK HOLDING COMPANY MOVEMENT TO 1978: A and Mexico; 10 or more of same issue to one address, COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to $18.00 per year or $1.75 each. Elsewhere, $24.00 per one address, $2.25 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. ANNUAL STATISTICAL DIGEST SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: 1974-78. 1980. 305 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

A81 CONSUMER EDUCATION PAMPHLETS 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- Short pamphlets suitable for classroom use. Multiple copies TWEEN EXCHANGE RATES AND INTERVENTION: A available without charge. REVIEW OF THE TECHNIQUES AND LITERATURE, by Kenneth Rogoff. October 1983. 15 pp. 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- Alice in Debitland VENTION, AND INTEREST RATES: AN EMPIRICAL IN- Consumer Handbook on Adjustable Rate Mortgages VESTIGATION, by Bonnie E. Loopesko. November Consumer Handbook to Credit Protection Laws 1983. Out of print. The Equal Credit Opportunity Act and Business Credit 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET The Equal Credit Opportunity Act and . . . Credit Rights in INTERVENTION: A REVIEW OF THE LITERATURE, by Housing Ralph W. Tryon. October 1983. 14 pp. Fair Credit Billing 135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET Federal Reserve Glossary INTERVENTION: APPLICATIONS TO CANADA, GERMA- Guide to Federal Reserve Regulations NY, AND JAPAN, by Deborah J. Danker, Richard A. How to File A Consumer Credit Complaint Haas, Dale W. Henderson, Steven A. Symansky, and If You Borrow To Buy Stock Ralph W. Tryon. April 1985. 27 pp. If You Use A Credit Card 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO- Instructional Materials of the Federal Reserve System MY, by Darrell Cohen and Peter B. Clark. January Series on the Structure of the Federal Reserve System 1984. 16 pp. Out of print. The Board of Governors of the Federal Reserve System The Federal Open Market Committee 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF Federal Reserve Bank Board of Directors FINANCIAL DEREGULATION, INTERSTATE BANKING, Federal Reserve Banks AND FINANCIAL SUPERMARKETS, by Stephen A. Rhoades. February 1984. Out of print. Organization and Advisory Committees U.S. Currency 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- What Truth in Lending Means to You LINES, AND THE LIMITS OF CONCENTRATION IN LO- CAL BANKING MARKETS, by James Burke. June 1984. 14 pp. 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN STAFF STUDIES: Summaries Only Printed in the THE UNITED STATES, by Thomas D. Simpson and Bulletin Patrick M. Parkinson. August 1984. 20 pp. Studies and papers on economic and financial subjects that 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF are of general interest. Requests to obtain single copies of THE LITERATURE, by John D. Wolken. November the full text or to be added to the mailing list for the series 1984. 38 pp. may be sent to Publications Services. 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 L. Greene. August 1984. 36 pp. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by Thomas F. Brady. November 1985. 25 pp. 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- TERNATIONAL TRADE AND OTHER ECONOMIC VARIA- 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) BLES: A REVIEW OF THE LITERATURE, by Victoria S. INDEXES OF THE MONETARY AGGREGATES, by Helen Farrell with Dean A. DeRosa and T. Ashby McCown. T. Farr and Deborah Johnson. December 1985. 42 pp. January 1984. Out of print. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- DEUTSCHE MARK INTERVENTION, by Laurence R. TION RESULTS, by Flint Brayton and Peter B. Clark. Jacobson. October 1983. 8 pp. December 1985. 17 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 REPRINTS OF BULLETIN ARTICLES Survey of Consumer Finances, 1983: A Second Report. Most of the articles reprinted do not exceed 12 pages. 12/84. Union Settlements and Aggregate Wage Behavior in the 1980s. 12/84. The Commercial Paper Market since the Mid-Seventies. 6/82. The Thrift Industry in Transition. 3/85. Foreign Experience with Targets for Money Growth. 10/83. U.S. International Transactions in 1984. 5/85. Intervention in Foreign Exchange Markets: A Summary of A Revision of the Index of Industrial Production. 7/85. Ten Staff Studies. 11/83. Financial Innovation and Deregulation in Foreign Industrial A Financial Perspective on Agriculture. 1/84. Countries. 10/85. Survey of Consumer Finances, 1983. 9/84. Recent Developments in the Bankers Acceptance Market. Bank Lending to Developing Countries. 10/84. 1/86. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 Index to Statistical Tables References are to pages A3-A75 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20, 74 Ownership by individuals, partnerships, and Assets and liabilities {See also Foreigners) corporations, 22 Banks, by classes, 18-20 Turnover, 15 Domestic finance companies, 37 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 7 Financial institutions, 26 Reserves and related items, 3, 4, 5, 12 Foreign banks, U.S. branches and agencies, 21 Deposits (See also specific types) Nonfinancial corporations, 36 Banks, by classes, 3, 18-20, 21 Automobiles Federal Reserve Banks, 4, 10 Consumer installment credit, 40, 41 Turnover, 15 Production, 47, 48 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) Discounts and advances by Reserve Banks (See Loans) BANKERS acceptances, 9, 23, 24 Dividends, corporate, 35 Bankers balances, 18-20 (See also Foreigners) Bonds (See also U.S. government securities) EMPLOYMENT, 45 New issues, 34 Eurodollars, 24 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, 70-72 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 Federal Reserve Banks Commercial and industrial loans, 16, 18, 19, 20, 21, 70-72 Condition statement, 10 Consumer loans held, by type, and terms, 40, 41 Discount rates (See Interest rates) Loans sold outright, 19 U.S. government securities held, 4, 10, 11, 30 Nondeposit funds, 17 Federal Reserve credit, 4, 5, 10, 11 Real estate mortgages held, by holder and property, 39 Federal Reserve notes, 10 Terms of lending, 70-75 Federal Savings and Loan Insurance Corporation—insured Time and savings deposits, 3 institutions, 26 Commercial paper, 23, 24, 37 Federally sponsored credit agencies, 33 Condition statements (See Assets and liabilities) Finance companies Construction, 44, 49, 73 Assets and liabilities, 37 Consumer installment credit, 40, 41 Business credit, 37 Consumer prices, 44, 50 Loans, 40, 41 Consumption expenditures, 51, 52 Paper, 23, 24 Corporations Financial institutions Nonfinancial, assets and liabilities, 36 Loans to, 19, 20, 21 Profits and their distribution, 35 Selected assets and liabilities, 26 Security issues, 34, 65 Float, 4 Cost of living (See Consumer prices) Credit unions, 26, 40 (See also Thrift institutions) Flow of funds, 42, 43 Currency and coin, 18 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 21 Customer credit, stock market, 25 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4, 10, 19, 20 Foreign exchange rates, 68 DEBITS to deposit accounts, 15 Foreign trade, 54 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 18-^21 Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 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 Commercial banks, 70-75 Consumer installment credit, 41 SAVING Federal Reserve Banks, 6 Flow of funds, 42, 43 Foreign central banks and foreign countries, 67 National income accounts, 51 Money and capital markets, 24 Savings and loan associations, 8, 26, 39, 40, 42 (See also Mortgages, 38 Thrift institutions) Prime rate, 23 Savings banks, 26 Time and savings deposits, 8 Savings deposits (See Time and savings deposits) International capital transactions of United States, 53-67 Securities (See specific types) International organizations, 57, 58, 60, 63, 64 Federal and federally sponsored credit agencies, 33 Inventories, 51 Foreign transactions, 65 Investment companies, issues and assets, 35 New issues, 34 Investments (See also specific types) Prices, 25 Banks, by classes, 18, 19, 20, 21, 26 Special drawing rights, 4, 10, 53, 54 Commercial banks, 3, 16, 18-20, 39 State and local governments Federal Reserve Banks, 10, 11 Deposits, 19, 20 Financial institutions, 26, 39 Holdings of U.S. government securities, 30 New security issues, 34 LABOR force, 45 Ownership of securities issued by, 19, 20, 26 Life insurance companies (See Insurance companies) Rates on securities, 24 Loans (See also specific types) Stock market, selected statistics, 25 Banks, by classes, 18-20 Stocks (See also Securities) Commercial banks, 3, 16, 18-20, 70-75 New issues, 34 Federal Reserve Banks, 4, 5, 6, 10, 11 Prices, 25 Financial institutions, 26, 39 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 U.S. government balances Money and capital market rates, 24 Commercial bank holdings, 18, 19, 20 Money stock measures and components, 3,13 Treasury deposits at Reserve Banks, 4, 10, 28 Mortgages (See Real estate loans) U.S. government securities Mutual funds, 35 Bank holdings, 18-20, 21, 30 Mutual savings banks, 8, 26, 39, 40 (See also Thrift Dealer transactions, positions, and financing, 32 institutions) Federal Reserve Bank holdings, 4, 10, 11, 30 Foreign and international holdings and transactions, 10, 30, 66 NATIONAL defense outlays, 29 Open market transactions, 9 National income, 51 Outstanding, by type and holder, 26, 30 Rates, 24 OPEN market transactions, 9 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

A85 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 George N. Hatsopoulos Robert W. Eisenmenger NEW YORK* 10045 John Brademas E. Gerald Corrigan Clifton R. Wharton, Jr. Thomas M. Timlen Buffalo 14240 Mary Ann Lambertsen 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 James E. Haas 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 30303 John H. Weitnauer, Jr. Robert P. Forrestal Bradley Currey, Jr. Jack Guynn Delmar Harrison Birmingham 35283 A. G. Trammell Fred R. Hen- Jacksonville 32231 Jo Ann Smith James D. Hawkins Miami 33152 Sue McCourt Cobb Patrick K. Barron Nashville 37203 Patsy R. Williams Jeffrey J. Wells New Orleans 70161 Sharon A. Perlis Henry H. Bourgaux CHICAGO* 60690 Robert J. Day Silas Keehn Marcus Alexis Daniel M. Doyle Detroit 48231 Robert E. Brewer 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 William C. Ballard, Jr. James E. Conrad Memphis 38101 G. Rives Neblett Paul I. Black, Jr. MINNEAPOLIS 55480 John B. Davis, Jr. Gary H. Stern Michael W. Wright Thomas E. Gainor Helena 59601 Marcia S. Anderson 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 James L. Stull El Paso .79999 Peyton Yates Joel L. Koonce, Jr. Houston 77252 Walter M. Mischer, Jr. J.Z. Rowe San Antonio 78295 Lawrence L. Crum Thomas H. Robertson SAN FRANCISCO 94120 Alan C. Furth Robert T. Parry Fred W. Andrew Richard T. Griffith Oren L. Christensen 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

A86 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND —— Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT sumer credit protections. This 44-page booklet ex- PUBLICATIONS plains how to use the credit laws to shop for credit, apply for it, keep up credit ratings, and complain about an unfair deal. The Federal Reserve Board publishes a series of Protections offered by the Electronic Fund Transfer pamphlets covering individual credit laws and topics, Act are explained in Alice in Debitland. This booklet as pictured below. The series includes such subjects as offers tips for those using the new "paperless" syshow the Equal Credit Opportunity Act protects wom- tems for transferring money. en against discrimination in their credit dealings, how Copies of consumer publications are available free to use a credit card, and how to use Truth in Lending of charge from Publications Services, Mail Stop 138, information to compare credit costs. Board of Governors of the Federal Reserve System, The Board also publishes the Consumer Handbook Washington, D.C. 20551. Multiple copies for classto Credit Protection Laws, a complete guide to con- room use are also available free of charge. If Tou Fair Use A Credit Credit Billing Card lite3 What Thithln ^^ Alice Lending 8 The w1 Equal Credit Means Opportunity To You Act and Credit Rights Debitland | In Housing L TRUTH MLE45ING Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis