Federal Reserve Bulletin, 1986-04
VOLUME 72 • NUMBER 4 • APRIL 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 Section 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 213 MONETARY POLICY REPORT TO THE goal of the Federal Reserve, the Congress, CONGRESS and the administration, before the House Committee on the Budget, February 26, Although there are unusual uncertainties 1986. surrounding prospects for prices and economic activity in 1986, the overall economic outlook for the year appears generally fa- 244 ANNOUNCEMENTS vorable. Appointment of Wayne D. Angell and Manuel H. Johnson as members of the Board of 229 STAFF STUDIES Governors. In "The Operating Performance of Ac- Meeting of Consumer Advisory Council. quired Firms in Banking Before and After Appointment of five new members to the Acquisition," the author presents results of Thrift Institutions Advisory Council. an empirical investigation of whether acquired firms are poor performers and Renewal of temporary simplified seasonal whether mergers generally improve the opcredit program for 1986. erating performance of acquired firms. Changes in Board staff. 230 INDUSTRIAL PRODUCTION Admission of eleven state banks to membership in the Federal Reserve System. Industrial production increased an estimated 0.3 percent in January. 246 RECORD OF POLICY ACTIONS OF THE 233 STATEMENTS TO CONGRESS FEDERAL OPEN MARKET COMMITTEE Chairman Volcker, in discussing the ap- At its meeting on December 16-17, 1985, proach of Federal Reserve policy within the the Committee adopted a directive that larger economic setting at home and abroad called for some limited decrease in the says that the continuing expansion has been degree of pressure on reserve positions. achieved while inflation has remained at the The members expected such an approach to lowest rate in more than a decade, before policy implementation to be consistent with the House Committee on Banking, Finance growth of M2 and M3 at annual rates of 6 to and Urban Affairs, February 19, 1986. 8 percent for the four-month period from [Chairman Volcker presented identical tes- November to March. Over the same period timony before the Senate Committee on they expected the expansion of Ml to slow Banking, Housing, and Urban Affairs, Feb- to an annual rate of 7 to 9 percent, though ruary 20, 1986.] the outlook for Ml growth continued to be subject to unusual uncertainty. Somewhat 241 Chairman Volcker discusses general con- greater reserve restraint might, and somesiderations of domestic and international what lesser restraint would, be acceptable policies within the context of recent devel- over the intermeeting period depending on opments and says that maintaining sustain- the growth of the monetary aggregates, the able growth of economic activity in a con- strength of the business expansion, the pertext of greater price stability is the common formance of the dollar on foreign exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
markets, progress against inflation, and Ai FINANCIAL AND BUSINESS STATISTICS conditions in domestic and international A3 Domestic Financial Statistics credit markets. The members agreed that A44 Domestic Nonfinancial Statistics the intermeeting range for the federal funds A53 International Statistics rate, which provides a mechanism for initiating consultation of the Committee when A69 GUIDE TO TABULAR PRESENTATION, its boundaries are persistently exceeded, STATISTICAL RELEASES, AND SPECIAL should be left unchanged at 6 to 10 percent. TABLES 253 LEGAL DEVELOPMENTS A70 BOARD OF GOVERNORS AND STAFF Various bank holding company, bank service corporation, and bank merger orders; A72 FEDERAL OPEN MARKET COMMITTEE and pending cases. AND STAFF; ADVISORY COUNCILS 285 MEMBERSHIP OF THE A74 FEDERAL RESERVE BOARD BOARD OF GOVERNORS OF THE PUBLICATIONS FEDERAL RESERVE SYSTEM, 1913-86 All INDEX TO STATISTICAL TABLES List of appointive and ex officio members. A79 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES A80 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress Report submitted to the Congress on February of the expansion, increases in output were great 19, 1986, pursuant to the Full Employment and enough to reduce the unemployment rate to its Balanced Growth Act of 1978.1 lowest level since 1980. Moreover, even as the economic upswing moved into its fourth year, inflationary pressures remained in check. In MONETAR Y POLICY AND THE 1985, prices generally rose less than they had the ECONOMIC OUTLOOK FOR 1986 year before and wage gains were restrained. Continued economic growth last year was sup- While there are unusual uncertainties surround- ported by a generally accommodative monetary ing prospects for prices and economic activity in policy. The demand for narrow money was 1986—stemming in part from questions about the strong, partly in lagged response to earlier intertiming and dimension of domestic adjustments to est rate declines and partly perhaps in response the weaker dollar on exchange markets, about oil to more conservative cash management pracprice declines, and about the process of fiscal tices. Ml expanded relatively rapidly throughout restraint—the overall economic outlook for the the year, growing about 12 percent, and its year appears generally favorable. Real economic velocity exhibited an unusual and large drop of growth probably will pick up somewhat from last 5Vi percent; growth exceeded both the original year's pace, and inflationary pressures should target range set in February and the wider, remain contained. The recent weakness in oil rebased range for the second half set in July. prices, though it has the potential for causing However, the broader monetary aggregates bedislocations in energy markets and adding to the haved more normally and ended the year within strains on some heavily indebted oil-producing their target ranges. M2 expanded about 8V2 percountries, should enhance real growth and work cent as compared with its range of 6 to 9 percent, to offset the upward impact on the price level this and M3 grew around IV2 percent compared with year from the drop of the dollar on exchange its range of 6 to 9lA percent. markets. Over the course of the year, the pro- In credit markets, most short-term interest spective movement toward fiscal restraint, and rates declined about a percentage point over last also the more competitive exchange rate, should year, while longer-term rates dropped approxihelp correct imbalances that in recent years have mately 2 percentage points, partly reflecting an threatened the sustainability of economic expan- improved outlook for inflation and expectations sion and affected domestic and international fi- of greater fiscal restraint. Stock prices also rose nancial markets. substantially during the year. Meanwhile, debt growth was strong, with expansion of domestic nonfinancial debt for the year of W/2 percent, Economic and Financial Background above the monitoring range of 9 to 12 percent set by the Committee. The rapidity of debt creation The past year was one of further progress in the reflected, in part, borrowings to finance retirenational economy. Although growth in economic ments of corporate stock associated with mergactivity was slower than that in the earlier phase ers, buy-outs, and share repurchases and the acceleration of state and local debt issues in response to proposed tax law changes. 1. The charts to the report are available on request from While output of the U.S. economy, measured Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. by real gross national product, expanded moder- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
214 Federal Reserve Bulletin • April 1986 ately in 1985, domestic sectors increased their Ranges of growth for monetary and credit aggregates purchases of goods and services more rapidly. Percent change, fourth quarter to fourth quarter The difference was reflected in an increasing volume of imports as the volume of exports Money or credit aggregate 1986 1985 declined. Thus, all segments of the economy did 3 to 8 3 to 81 not share equally in the expansion. Key sectors 6 to 9 6 to 9 6 to 9 6 to 9»/2 such as manufacturing, mining, and agriculture 8 to 11 9 to 12 continued to face strong competition from foreign producers. Sluggish growth abroad also 1. Applied to period from second to fourth quarter. limited export markets for U.S. producers. In financial markets, a number of institutions had to ued progress over time toward price stability, cope with loan problems associated with the and working toward better balance in the naeconomic pressures and large debt burdens of tion's external transactions. As shown in the certain borrowers, including less developed accompanying table, the Committee set ranges countries and energy and agricultural borrowers for the monetary aggregates for the period from the in the United States. fourth quarter of 1985 to the fourth quarter of 1986 Adjustments are in process that should help of 3 to 8 percent for Ml and 6 to 9 percent for both correct the imbalances that have emerged in M2 and M3; it established a monitoring range of 8 recent years. The resolve demonstrated by the to 11 percent for debt. These are the same ranges Congress and the administration in passing the that had been tentatively set for 1986 in July of last Balanced Budget and Emergency Deficit Control year, except that the Ml range has been widened Act of 1985 has had salutary effects on expecta- to reflect the uncertainties about the behavior of tions in financial markets. As budgetary deficits that aggregate, as noted below. are reduced, more and more domestic saving can Compared with ranges that had most recently be channeled into investment in the plant and been in effect for 1985, the new ranges involve a equipment needed to improve productivity and reduced upper limit for M3 and a generally lower sustain economic growth over the long term. The range for debt. The ranges for Ml and M2 are decline in the dollar should help bring about an unchanged. The width of the Ml range reflects environment in which U.S. producers will be continuing uncertainties about the behavior of able to compete more effectively in world mar- Ml under varying economic and financial cirkets. The efforts of many banks and other finan- cumstances, given recent experience and the cial intermediaries to bolster capital and re- changed composition of the aggregate over the serves, together with lower interest rates, should past few years. In particular, the availability of help financial institutions to strengthen their abil- interest-bearing checking accounts that serve ity to cope with financial strain. Questions re- both transaction and savings functions may have main, however, about other factors affecting the increased the sensitivity of this aggregate to U.S. economy—including the strength of eco- changes in market rates as well as to other nomic expansion abroad, the impact of a declin- factors influencing the public's allocation of its ing dollar on inflation here, and the effect of savings among various financial assets. While reduced oil prices on the financial health of the range for Ml is wide enough to allow for domestic energy producers and of a number of some variation in behavior of the aggregate's oil-exporting developing countries. income velocity in response to changing conditions, the range was set on the assumption that there would not be a large drop in velocity, such Monetary Policy for 1986 as occurred in 1985. In that connection, the Committee will evaluate behavior of Ml in light of its consistency with the other monetary aggre- The Federal Open Market Committee framed its gates, economic and financial developments, and monetary policy plans for 1986 in light of the the potential for inflationary pressures. In sum, fundamental objectives of maintaining sustainpolicy implementation will involve continuing able growth of economic activity, making contin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 215 appraisal of the relationships among the various the dollar, and oil prices—the Committee memmeasures of money and credit, their velocity bers and nonvoting Reserve Bank Presidents trends, and indicators of economic activity and generally believe that prospects for the economy prices, as well as conditions in domestic credit in the year ahead are reasonably favorable. As and foreign exchange markets. indicated in the table, their expectations center The growth of the broader aggregates in 1986 is on real GNP growth of 3 to VA percent and on not expected to be far different from last year, inflation in the range of 3 to 4 percent. The when their velocities declined somewhat. Last expanding job opportunities associated with the year's velocity experience was closer to the increase in output are expected to lower the norm for these aggregates than was the case for unemployment rate gradually, although sluggish Ml. The final phase of deposit deregulation this productivity performance, if it should continue, year—the removal of minimum balance require- would limit the nation's growth potential. ments on money market deposit accounts at the Two key factors in the positive economic beginning of the year and the elimination of outlook are the recent developments in energy ceiling rates on savings and regular NOW ac- and financial markets. The decline in energy counts at the end of March—is expected to have prices can be expected to raise the growth of real only minimal effects on the broad aggregates as disposable income and to bolster consumer well as on Ml. Other ceiling-free accounts have spending in the months ahead. The marked inbeen widely available for a number of years, and crease in household financial wealth associated minimum balance requirements already have with the rise in stock and bond prices also should been reduced to a relatively low level. provide the basis for continued gains in consum- The Committee for some years has had a er outlays. This should work to offset the remonitoring range for the total debt of domestic straint in spending that could be exerted by the nonfinancial sectors. Historically, debt has ex- runup in household indebtedness and the associpanded about as rapidly as GNP, but in recent ated decline in the personal saving rate during years debt has grown more rapidly than the the past year. Nevertheless, the high level of economy, raising some concern about the in- debt remains a risk in the outlook for consumer creasing debt burden. The growth of debt is spending. expected to moderate somewhat in 1986. A dimi- The rise in stock prices and the decline in nution of debt financing for purposes of stock interest rates have improved prospects for doretirement is anticipated, and growth of state and mestic investment in plant, equipment, and houslocal government debt is expected to slow from ing. Moreover, while the federal deficit is not last year's exceptional pace, absent further likely to drop significantly for some months, as changes in the proposed tax law that might noted earlier, greater fiscal restraint, as it develprompt a renewed acceleration in borrowing. ops, should enhance the availability of domestic While the federal deficit is expected to remain at saving for private investment and reduce the a high level for much of 1986, it should begin need to rely on foreign saving. Mortgage rates declining in the course of the year as greater are at their lowest levels since 1979, and the fiscal restraint takes hold and helps to curb the greater affordability of housing can be expected rate of increase in U.S. government debt. to buoy residential construction even in the face of some evident overbuilding in the multifamily Economic Projections sector. Similarly, lower costs of capital should— along with some improvement in the competi- The Committee felt that its monetary objectives tiveness of U.S. industry owing to the dollar's were consistent with expectations for continued decline—help to support business investment growth in output, further reductions in unem- despite likely weakness in the energy and office ployment, and muted inflation in 1986. While building sectors. In the near term, the leanness of there clearly are a good many uncertainties and manufacturers' stocks suggests the likelihood of risks in the present environment—for instance, some pickup in the rate of inventory accumulathe actual outcome for the budget, behavior of tion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
216 Federal Reserve Bulletin • April 1986 Economic projections for 1986 Percent jj : : • at jgjgl FOMC members and other • FRB Presidents AAddmmiinniiss-- CCoonnggrreessssiioonnaall CChhaannggee iinn GGNNPP oorr uunneemmppllooyymmeenntt Central ttrraattiioonn BBuuddggeett OOffffiiccee Range tendency GNP, change from fourth quarter to fourth quarter Nominal 55 ttoo 88VV44 66''//22 ttoo 77''//44 88..00 77..66 Real 22VV** ttoo 4411//44 33 ttoo 33''//22 44..00 33..66 Implicit deflator 22VVii ttoo 44''//22 33 ttoo 44 33..88 33..99 Unemployment rate, average level in the fourth quarter 66''//44 ttoo 66^^//44 AAbboouutt 66''//22 66..77 66..7711 1. Civilian unemployment rate. The outlook for the external sector is quite THE PERFORMANCE OF THE ECONOMY uncertain. The response of U.S. industry, as well DURING THE PAST YEAR as of foreign producers, to the decline of the dollar will take place only over time and will The economy completed a third successive year depend on a number of factors, such as the of expansion in 1985, with real gross national extent to which it is believed the exchange rate product increasing 2Vz percent over the year. The change is "permanent" and the strategies firms rise in economic activity was sufficient to create pursue with respect to the potential trade-off 3 million new payroll jobs and the unemployment between profit margin and market share. Perhaps rate edged down; with a further strong increase more important in the short run, our trade and in employment in January of this year, the jobcurrent account position also will depend on the less rate for civilians reached a six-year low of pace of economic growth abroad: if growth in 6.7 percent. Meanwhile, most broad measures of other countries is relatively slow, that would price increase indicate that inflation slowed to tend to limit near-term improvement. about a 3¥i to 33/4 percent rate in 1985, somewhat With regard to the outlook for inflation, wages less than the pace registered over the previous in the aggregate have shown no tendency toward two years. acceleration, and recent settlements in major Though output and employment continued to collective bargaining agreements indicate wage grow in 1985, the rate of expansion was slower gains in manufacturing, construction, and trans- than some had anticipated, raising some conportation are likely to continue at the moderate cerns about the sustainability of the recovery. pace registered in recent years, even though the Furthermore, the pattern of developments in the unemployment rate is declining. Disappointing past year had some disturbing aspects: domestic productivity performance does raise questions and foreign demands continued to be diverted about pressures from the labor cost side, al- away from goods and services produced in the though some pickup in productivity improve- United States, draining income from our housement is assumed this year. A decline in oil prices holds and businesses and exacerbating an invenalso should be a constructive influence. Never- tory correction by U.S. firms as their sales theless, it was recognized that a weaker dollar lagged; meanwhile, consumers continued to inposes a clear risk of greater inflationary pres- crease their spending at a substantial clip, but sures. only by borrowing at a pace that pushed house- The projections by FOMC members and non- hold debt burdens to still higher levels. voting Reserve Bank Presidents of real GNP and Although the nation as a whole experienced prices over 1986 generally are somewhat lower continued growth, the serious sectoral imbalthan the administration's projections, although ances that had emerged earlier during the recovthe full range of expectations does encompass ery became more apparent when gains in activity the latter. In any event, differences are not large moderated. Industrial output grew slowly in and economic growth at the pace the administra- 1985, and manufacturing and mining employment tion anticipates can be accommodated by the posted outright declines during much of the year. FOMC's targets. The agricultural sector remained under acute Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 217 pressure, as shrinking export markets and abun- progress toward the goal of price stability. The dant harvests pushed prices sharply lower. As a containment of inflation has been aided by the result, farmers continued to face mounting diffi- high exchange value of the dollar and excess culties in servicing the large volume of debt that world supplies of many basic materials, which had accumulated in the 1970s. have left prices unchanged or lower for a wide To a considerable extent, these imbalances range of imported goods, industrial commodities, and stresses are related to fundamental disequili- agricultural products, and petroleum. More funbria in the nation's finances: the continuing huge damentally, wage increases in the aggregate have federal budget deficit and the growing deteriora- been restrained, limiting upward pressure on tion in the U.S. current account. During the past costs. year, however, policymakers took important steps to address these problems. The Balanced Budget and Emergency Deficit Control Act was The Household Sector passed, establishing a mechanism for deficit reduction and signaling the resolve of the Congress Spending in the household sector remained and the administration to achieve meaningful strong in 1985, despite a sharp slowing in income progress on this front. And the financial authori- growth. Growth in real disposable income rose ties of the G-5 nations agreed that exchange rates about IV2 percent, much less than the increase of should better reflect underlying economic rela- 4 percent of the previous year. Income growth tionships, which would enhance the prospects was limited as wage and salary gains decelerated, for some improvement in our external balance. interest income weakened, and farm income The federal budget deficit was of record mag- plummeted. Meanwhile, real personal consumpnitude in fiscal year 1985. The large federal tion expenditures advanced 3 percent last year— deficit not only absorbed a significant portion of only a little less than in 1984—buoyed by continthe saving available to the domestic economy, ued high levels of borrowing. As a result, the but also continued to be a source of concern to personal saving rate fell to an average of about investors with respect to longer-range potential Wi percent last year, well below historical for inflationary pressures. Not surprisingly, the norms. prospect for some reduction in the deficit con- The strength in household spending last year tributed to the downward trend in interest rates reflected further gains in outlays for consumer late last year. durables, especially purchases of new automo- The importance of international economic de- biles. Sales of new cars totaled more than 11 velopments for the performance of the U.S. million units, the strongest selling pace since economy has become increasingly apparent dur- 1978. Sales of domestic autos picked up to 8V4 ing the current economic expansion. Although million units in response to the general downthe foreign exchange value of the dollar declined trend in interest rates, several rounds of price over most of the year—encouraged at times by and financing concessions offered by manufaccoordinated official intervention activity— turers, and increased availability of some models changes in spending patterns, which typically lag that had been in short supply in 1984. Sales of movements in exchange rates, were not yet foreign cars climbed to a record level of more evident and imports made further inroads into than 2Va million units for the year; a greater domestic markets. Meanwhile, slow growth, on volume of exports to the United States was average, in much of the rest of the world has permitted under the Japanese voluntary restraint failed to provide strong markets for U.S. ex- program for 1985-86, and this accounted for ports. The net result has been that domestic most of the pickup. demands have increased more rapidly than do- Activity in the housing sector was flat in 1985. mestic production throughout the course of the The number of new homes started last year expansion. remained at about the same rate of PA million An important achievement of the current re- units posted in the preceding two years. Concovery has been the sustained expansion of struction of single-family housing showed no economic activity without any relinquishing of new strength, despite a decline in mortgage rates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
218 Federal Reserve Bulletin • April 1986 to their lowest level in six years and favorable the late 1960s. Many firms in manufacturing and demographic trends. In part, some of the effect mining industries, however, have encountered of lower mortgage rates may have been offset by significant difficulties brought about by the high a tightening of qualification standards by lenders value of the dollar. In addition to the influence of and mortgage insurers and higher mortgage in- the exchange rate, downward pressures on surance premiums. Construction of multifamily prices and profits in the agricultural and energy housing remained at the relatively high level of sectors have been exacerbated by ample supplies the two previous years, notwithstanding high and in world markets. rising vacancy rates for rental units. Rental hous- Business spending for equipment and strucing construction was supported by heavy issu- tures advanced 6 percent in real terms in 1985, ance of debt by state and local authorities, partly supported by falling interest rates, declining relain anticipation of constraints imposed by tax tive prices for capital equipment, and continued reform legislation. efforts to modernize facilities in order to meet Recent trends in consumer balance sheets con- intensified competition. Nevertheless, the tinued last year. Consumer installment debt, growth in business fixed investment was well which had climbed sharply in 1984, did so again below the extraordinary pace of the preceding in 1985, and the ratio of debt to disposable two years. Furthermore, the slowdown in capital income reached a record high. Growth in finan- outlays was widespread, including many categocial assets of households has, however, more ries of high technology equipment, heavy industhan kept pace with the rapid rise in debt over the trial machinery, and structures. Some decelerapast two years. In particular, the strong gains tion of investment spending may be expected as posted by the stock and bond markets in 1985 an expansion progresses and the growth of sales provided a substantial boost to household subsides to more sustainable levels. However, wealth. the reduced pace of investment last year was Indications of debt-servicing difficulties in the reinforced by declining capacity utilization rates household sector have mounted. Delinquency in the industrial sector. Moreover, rising vacanrates on consumer installment loans have been cy rates for office buildings contributed to slower on the rise since mid-1984, and for some catego- growth in expenditures for nonresidential strucries—such as bank credit cards—have reached tures. relatively high levels. Moreover, mortgage loan Businesses accumulated inventories at a much delinquencies persist at the historically high lev- reduced pace in 1985, particularly in the manuels that have prevailed since the 1981-82 reces- facturing sector. In real terms, nonfarm business sion, associated with the influence of lingering inventories rose $10 billion last year, after the high rates of unemployment in some communi- sharp $56 billion investment that occurred in ties, slow income growth, and weak housing 1984. In the manufacturing sector, sluggish orprices in certain areas of the country. However, ders and stable or falling prices have induced surveys of households continue to show favor- businesses to adopt a cautious approach to inable readings on attitudes concerning financial ventory accumulation; factory inventories depositions, suggesting that these financial strains clined over the second half of 1985 and were little are currently limited to a small part of the changed on net for the year as a whole. In the population. trade sector, stocks increased over the year, boosted by a large rise in auto inventories in the fourth quarter. Excluding autos, inventories at The Business Sector retail establishments increased about in line with the moderate rise in sales over 1985. Economic conditions in the business sector also Financial strains have remained evident in were mixed last year. After-tax economic profits several important sectors of the economy. The of nonfinancial corporations as a group increased decline in the exchange value of the dollar has sharply for a third consecutive year and as a yet to ease significantly the international trading percent of GNP stood at their highest level since problems of many industrial firms. Moreover, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 219 the activity and earnings of the domestic energy The Foreign Sector sector have been affected adversely by the weakening of petroleum prices on world markets. The After registering particularly sharp gains toward financial condition of U.S. agriculture worsened the end of 1984 and in the first two months of further in 1985. A large portion of the agricultural 1985, the dollar generally fell in international sector has continued to struggle with sharply currency trading throughout the remainder of lower prices, diminished export markets, and last year. By the end of 1985, the trade-weighted depressed land values. With farm incomes plung- foreign exchange value of the dollar had fallen ing, debt-servicing problems have created seri- nearly 25 percent from its peak in February. This ous strains on both farmers and farm lenders. decline occurred against the backdrop of a narrowing of the differential between inflationadjusted, long-term interest rates in the United The Government Sector States and other industrial countries, which at least in part reflected the slowing of economic The federal budget deficit rose to $212 billion in growth in the United States relative to growth fiscal year 1985. Although the expanding econo- abroad. my continued to boost receipts, outlays rose It will take some time before the effects of the even faster, with large increases registered for dollar's depreciation manifest themselves in the agricultural support payments, interest outlays, external position of the United States, which and defense purchases. As a percent of GNP, the continued to deteriorate last year. The widening deficit remained at a historically high level of 5 gap between imports and exports boosted the percent, absorbing a large share of the net saving current account deficit to about $120 billion, up available to the domestic economy. from $107 billion in 1984. Federal government purchases of goods and Merchandise imports continued to rise in 1985, services, which add directly to GNP and consti- increasing about Vh percent in real terms over tute a third of total federal expenditures, posted the year. Consumer goods, capital equipment, another strong advance last year. Federal pur- and industrial materials posted moderate inchases, excluding changes in farm inventories creases. Although prices of imported goods fell held by the Commodity Credit Corporation for the year as a whole, some firming in the (CCC), were up more than 33/4 percent over the prices of manufactured imports became apparent year, after adjustment for inflation. Defense out- toward the end of the year, in part attributable to lays continued to provide a major boost to feder- the decline in the value of the dollar. al purchases, rising 6Vi percent over the year. The volume of merchandise exports declined Purchases by the CCC rose sharply, as low in 1985; agricultural exports fell abruptly, while market prices encouraged farmers to shift mas- exports of nonagricultural goods were essentially sive inventories of grain to the federal govern- unchanged. The failure of growth in other indusment. trial countries, on average, to pick up has limited State and local governments increased pur- the expansion of markets for U.S. products. chases of goods and services about 3 percent in Furthermore, economic growth in developing 1985, after a similar increase in the preceding nations slowed a bit in 1985, as many countries year. Most of the growth in expenditures last continued to face difficult debt-servicing probyear reflected strong increases in construction lems externally and strong inflationary pressures outlays as states and localities continued efforts at home. to improve and expand basic infrastructure. With In this context, the Secretary of the Treasury the rise in expenditures exceeding the growth in in October addressed the economic and financial receipts, the fiscal position of state and local problems confronted by many of these countries. governments weakened throughout the year; ag- He urged the borrowing countries to undertake gregate operating and capital account surpluses, comprehensive programs of economic adjustwhich had risen to substantial levels in 1984, ment designed to promote efficiency and ecowere virtually eliminated by the end of last year. nomic growth. At the same time, he called upon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
220 Federal Reserve Bulletin • April 1986 the international banking community, the World deceleration of compensation per hour last year Bank, and the other multilateral development reflected a slowing in the growth of fringe benebanks, working with the International Monetary fits; wage rates increased at about the same pace Fund, to provide the assurance that adequate posted in 1984. To a large extent, the recent external financing would be available to support slowing in the growth of benefits has resulted such programs during the next several years. The from lower health care expenses for employers, initial response to these proposals has been posi- as cost-sharing arrangements shifted greater retive; all parties generally accept that the propos- sponsibilities to employees and programs for als represent a constructive framework for deal- hospital cost containment became more wideing with the international debt problems of spread. individual countries and for promoting the Meanwhile, labor productivity was nearly ungrowth and stability of the world economy. changed in 1985, after increasing substantially earlier in the recovery. When viewed over a longer period, the underlying trend in productivi- Labor Markets ty in recent years appears to have improved a little from the very low pace of the 1970s, but With the economy continuing to expand, devel- remains well below the pace earlier in the postopments in labor markets remained generally war period. Management and workers have refavorable in 1985. The unemployment rate drift- sponded to a more competitive environment by ed down over the year, as gains in employment modernizing plant and equipment, improving opexceeded the growth of the labor force. Labor erational efficiency, and making work rules more force participation has maintained its upward flexible. Unit labor costs in the nonfarm business trend; women continued to enter the workforce sector rose 33/4 percent in 1985, higher than the in large numbers, in part responding to expand- increase during the previous two years but well ing job opportunities. Overall, the number of under the pace registered in the early 1980s. persons employed relative to the population rose to a record level. Nonfarm payrolls expanded 3 million in 1985, Price Developments somewhat below the unprecedented hiring rate posted during the first two years of the recovery. Most broad measures of prices indicate that Although growth in employment in the aggregate inflation was unchanged or perhaps moved a bit continued, the composition of the gains reflected lower in 1985, even as the economy was passing the unevenness of current expansion. Employ- through a third year of expanding activity. The ment in the trade and service sectors accounted consumer price index advanced 33/4 percent over for more than two-thirds of the growth in pay- 1985, somewhat less than the 4 percent increase rolls last year. Government employment rose posted the previous year. The GNP fixed-weight nearly one-half million, reflecting primarily in- price index, which includes production for busicreased payrolls of state and local governments. nesses, government, and export, as well as for In contrast, the weak expansion of output in the consumers, increased V/i percent, about xh permanufacturing sector resulted in some trimming centage point less than the average increase over of employment over the first three quarters of the the preceding two years. Producer prices of year. Although an upturn in manufacturing jobs finished goods advanced l3/4 percent last year, began in the fall, employment was down about and prices of intermediate materials were essen- 170,000 over the year. tially flat. Wage increases remained restrained in most Progress toward price stability has been sussegments of the labor market last year, despite a tained by several factors, the most important of further reduction in the unemployment rate. which have been subdued inflation expectations, Hourly compensation in the private sector, as moderate wage increases, and the influence of measured by the employment cost index, rose the high value of the dollar on the prices of about 4 percent in 1985, 1 percentage point less imports and goods that compete with imports. In than in the preceding year. Nearly all of the addition, developments in the food and energy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 221 markets continued to restrain the overall rate of domestic nonfinancial sectors was set at 9 to 12 inflation in 1985. Energy prices showed little percent. change last year; however, a substantial margin In July, the Committee reaffirmed the ranges of unutilized productive capacity, continued con- for M2, M3, and debt, but established a new Ml servation efforts, and the debt-servicing prob- growth range of 3 to 8 percent, measured at an lems of several important oil producers have all annual rate, from the second to the fourth quarcontributed to a situation of surplus availability ter of the year. Over the first half of the year, Ml of oil and to a sharp break in oil prices on world had grown well above the upper end of its range markets at the end of the year. Crop prices at the and velocity had registered an unusually steep farm have remained depressed by diminished decline, apparently reflecting substantial addiexport demand and high levels of production. tions to money balances, especially interest- Lower prices for crude foods and small increases earning transaction balances, spurred by the in processing costs held food prices at the retail sharp drop in interest rates since mid-1984. The level to an increase of 23A percent last year. Ml objective for the second half of the year Prices for many basic industrial commodities anticipated a considerable slowing of growth, on fell during 1985. Weak expansion of industrial the assumption that historically more normal production in the United States and in other behavior in the velocity of Ml would reemerge. major industrial countries has limited the growth Continued uncertainty about the behavior of the in demand for raw and semi-processed materials. aggregate, however, was signaled in widening Furthermore, the high prices for many raw com- the Ml range 2 percentage points. modities that prevailed over the 1970s and early The unusual pattern of Ml behavior in fact 1980s induced a rapid expansion of capacity, persisted over the second half of the year; particularly in developing countries. With pro- growth in the aggregate did not slow, and its ductive capacity in place and with many of these velocity registered an even steeper decline. At countries facing massive debt-servicing require- the same time, the broader monetary aggregates ments, supplies of commodities on world mar- were growing generally within their ranges, while kets have remained plentiful. economic growth had slowed to well below the On balance, price increases outside the food pace of the year before and upward price presand energy area held steady last year. Consumer sures remained muted. In the fall, the FOMC prices other than food and energy increased determined that, under these circumstances, about 4Vi percent, a bit less than in 1984. The growth in Ml above its range for the second half prices of retail goods excluding food and energy of the year would be acceptable. were held to a gain of 2 percent in 1985, at least in In general, the FOMC last year emphasized part by small increases or declines in the prices the need to evaluate growth in all the aggregates of products in markets in which import competi- in light of developments in the economy and tion is substantial. Price increases for nonenergy prices, as well as conditions in financial and services remained at an annual rate of about 53/t foreign exchange markets. Throughout the year, percent last year. Capital equipment prices rose monetary policy remained generally accommo- 23/ percent in 1985, somewhat more than in 1984. dative to emerging demands for money. Pres- 4 sures on bank reserve positions were varied in a narrow range over the year, and the discount rate MONETARY POLICY AND FINANCIAL was reduced once, by V2 percentage point. MARKETS IN 1985 At its meeting in February 1985, the Federal Money, Credit, and Monetary Policy Open Market Committee established ranges for money and credit growth during the year, mea- Ml increased at an annual rate of 12.7 percent sured from the fourth quarter of 1984 to the from the second to the fourth quarter of the year, fourth quarter of 1985, of 4 to 7 percent for Ml, 6 compared with its range of 3 to 8 percent for this to 9 percent for M2, and 6 to 9Vi percent for M3. period; growth for the year as a whole came to The associated monitoring range for the debt of 11.9 percent. Much of the unusually strong Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
222 Federal Reserve Bulletin • April 1986 Growth of money and credit1 Percentage changes 1. Ml, M2, and M3 incorporate effects of benchmark and seasonal 3. Ml figure in parentheses is the annualized growth rate from the adjustments made in February 1986. second to the fourth quarter of 1985. 2. Ml figure in parentheses is adjusted for shifts to NOW accounts in 1981. growth in Ml in 1985 and the accompanying to interest-bearing checkable accounts. Spreads decline in velocity seemed to be attributable to between offering rates on these deposits and lower interest rates, though expansion in the interest rates on time deposits and market instruaggregate was stronger, particularly in the sec- ments, low by the standards of recent decades, ond half of the year, than historical evidence on apparently diminished the incentives to keep its relationship to income and interest rates savings in longer-term instruments, as well as to would have suggested.2 The behavior of this separate savings from transaction balances. Deaggregate may have become more sensitive to mand deposits also contributed to the increase in changes in market rates in recent years owing to Ml last year, registering unusually rapid growth, the deregulation of certain transaction accounts. especially in the second half. Business demand By reducing the opportunity cost of holding balances paced the rise, likely reflecting the transaction balances, the creation of NOW and cumulative effect of lower interest rates on in- Super NOW accounts has made Ml a much more centives to economize on demand deposits and attractive savings vehicle for households. More- on compensating balance requirements, as well over, with the rates on NOW accounts fixed and as generally more cautious cash management those on Super NOWs being adjusted sluggishly practices, possibly in part because banks and to changing conditions, falling interest rates have corporations sought to reduce risk in response to led to relatively substantial reductions in incen- financial problems that had developed in certain tives to economize on Ml balances, with accom- areas of the market. panying declines in velocity. However, consider- M2 recorded growth of 8.6 percent in 1985, in able uncertainty about the response of Ml to the upper part of its range, as its nontransaction variations in interest rates or income unavoidcomponent increased 7.6 percent. The shift toably persists, as both money holders and deposiward more liquid assets evident in the rapid rise tory institutions adapt to the elimination of imof Ml also affected the distribution of deposits portant regulatory constraints.3 within the nontransaction portion of M2. Small In 1985, the interaction of lower market inter- time deposits declined last year, while some very est rates with deregulated transaction deposit liquid components, such as money market derates seemed to induce especially heavy inflows posit accounts, posted very large increases, and even savings deposits rose 4 percent after several years of declines. However, growth of M2 2. Appendix A reviews the behavior of velocity in recent years. appears to have been restrained to an extent by 3. Experimental alternative measures of money, which some redirection of household portfolios toward attempt to allow for the varying degree of "moneyness" in such non-M2 instruments as shares in stock and components of the monetary aggregates, are discussed in appendix B. bond mutual funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 223 M3 growth slowed to 7.4 percent last year— the drag from the relatively high value of the close to the midpoint of its range—reflecting in dollar on exchange markets. Growth of the part a slower pace of credit expansion at deposi- broader aggregates had slowed appreciably after tory institutions and consequently a reduced the early part of the year, though Ml remained need to raise funds through managed liability well above its range. On balance over the first six issuance. Thrift institutions, in particular, greatly months of the year, most market interest rates reduced their net acquisition of assets, partly in fell about 1 percentage point, leaving them about response to new Federal Home Loan Bank 3 to 4 percentage points below their mid-1984 Board regulations that raised capital require- levels. On exchange markets, the dollar, which ments for rapidly growing thrifts. The growth of had risen sharply through February, declined large time deposits issued by thrift institutions thereafter and by midyear was 9 percent below slowed to less than 7 percent in 1985, down its February peak on a trade-weighted basis, sharply from the pace of nearly 50 percent re- leaving it just under its level at the end of 1984. corded in the preceding year. When, at its July meeting, the FOMC reaf- Expansion in debt of domestic nonfinancial firmed its ranges for M2, M3, and debt, and sectors moderated only a little from its elevated widened and rebased the Ml range, the members 1984 pace and, at 13.5 percent, exceeded its anticipated that these ranges would be consistent monitoring range of 9 to 12 percent. Last year with continued subdued inflation and some pickwas the fourth consecutive year in which debt up in economic growth from the sluggish firstexpanded more rapidly than GNP, after more half pace. As the summer progressed, however, than 20 years in which the ratio of debt to GNP it became clear that the demand for Ml remained had been generally stable. One factor boosting strong. After slowing somewhat in July, Ml debt growth relative to spending has been the spurted again in August and continued to rise at a extraordinary pace of corporate borrowing to double-digit annual rate in September. M2 retire equity in mergers, buyouts, and stock growth also picked up during the summer, climbrepurchases. The volume of such borrowing ap- ing above its range in this period. pears to have been as large in 1985 as in 1984. In In the summer, market interest rates reversed addition, borrowing surged late last year in the a portion of their earlier declines. With both Ml tax-exempt market, when issuance was acceler- and M2 growing relatively rapidly, economic ated in anticipation of possible tax law changes. activity apparently picking up, and the dollar Even after allowance for these two factors, having declined further, the Federal Reserve which together may have accounted for roughly provided reserves a bit more cautiously for a 2 percentage points of debt growth in 1985, the time. But beginning around mid-autumn, the expansion of the debt of domestic nonfinancial Federal Reserve was seeking a slight easing in sectors remained very strong. An important ele- bank reserve conditions, as incoming data sugment in the continued rapid growth of debt and gested that relatively moderate increases in ecothe rise in its ratio to GNP has been the huge size nomic activity continued to be in prospect and of federal deficits. Although federal debt growth upward price pressures remained subdued. has slowed since 1982, it continued to run at Meanwhile, Ml growth was continuing strong on more than 15 percent last year. balance, but growth in the broader aggregates In implementing policy during 1985, the Feder- was slowing. al Reserve basically accommodated the strong On balance over the second half of the year, demands for reserves by depository institutions. most short-term rates were little changed, ending In the early part of the year—when Ml expan- the year just slightly above their midyear lows sion was very rapid, and M2 and M3 growth was and about a percentage point below their levels also strong—interest rates backed up somewhat. when 1985 began. However, on exchange mar- However, these increases were more than re- kets, the dollar declined more than 15 percent versed later in the first half, influenced in part by over the second half, impelled in large part by the a cut of Vi percentage point in the discount rate G-5 announcement in September indicating the from 8 to 7V2 percent in May, as economic desirability of some appreciation of other currenactivity appeared more sluggish, partly reflecting cies relative to the dollar and by the ensuing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
224 Federal Reserve Bulletin • April 1986 coordinated intervention by the United States ence. Consumer credit remained especially and other key industrial countries. strong, growing at nearly the 20 percent rate In long-term debt markets, interest rates gen- recorded in 1984. But the growth of home morterally fell a percentage point or more on balance gage borrowing, while near its 1983-84 average, over the second half, with most of the decline was probably restrained somewhat by the tightoccurring during a fourth-quarter rally that accel- ening of lending standards that accompanied the erated as the year drew to a close. The down- rise of mortgage loan delinquency rates to record ward movement in long-term rates and simulta- levels. neous surge in stock market prices were fueled in Strains were evident in financial markets at part by legislative initiatives to mandate reduc- times in 1985 but did not cause major disruptions tions in the federal deficit and to pare the govern- in overall market conditions. Financial market ment's demands on credit markets. Declining concern over credit-quality issues was not severe world oil prices and the continued softness in enough to be reflected in a broad-based widening markets for other commodities promoted expec- of yield spreads between corporate and Treasury tations of lower inflation among market partici- debt or between private-sector securities of difpants, also contributing to the rally. ferent risk classes. Nevertheless, the agricultural sector of the economy continued to experience Other Developments in Financial Markets serious financial distress and there were pressures on some segments of the financial commu- Corporations were able to reduce their demands nity at times last year. on credit markets in 1985 as strengthening profits Early in the year, privately insured savings and weaker capital expenditures narrowed the and loans in Ohio and, then, in Maryland were sector's financing gap. Nevertheless, business closed or limited to small withdrawals after deborrowing to finance stock retirements remained positor runs in both states. The problem in Ohio high—perhaps $70 billion in each of the past two was triggered by news of losses at one large thrift years. Spurred by the drop in long-term rates, to institution. Problems developed in Maryland six-year lows, corporate credit demands focused when heightened depositor anxiety in the afteron the bond markets. Record amounts of securi- math of the Ohio crisis combined with news of ties were offered publicly by nonfinancial firms difficulties at a savings and loan in Maryland. As in both the domestic and the Eurobond markets the difficulties emerged, the Federal Reserve last year. On the other hand, short-term borrow- advanced funds at the discount window to the ing slowed, with bank lending to businesses affected institutions to bolster their liquidity. relatively weak. Such lending—whose expansive reserve effect Tax-exempt borrowing was extraordinarily was offset through open market operations—has strong last year; a surge in bond offerings late in been repaid in Ohio, where the troubled instituthe year lifted 1985 volume to a record high. tions have been restructured and reopened, but While more favorable interest rates stimulated remains outstanding at a number of Maryland borrowing generally, efforts to finance in ad- thrift institutions. vance of possible restrictions under a proposed The thrift industry as a whole showed some tax law scheduled to take effect after year-end improvement in earnings and capital positions boosted advance refunding and private purpose last year, although many institutions remained issues in particular. heavily burdened with low-quality or low-yield- Households continued to borrow heavily in ing assets. Lower interest rates lifted profits 1985. Their debt-servicing burden rose sharply as from their depressed 1984 levels by reducing the they continued to add to debt at a double-digit cost of funds and generating capital gains on rate at the same time that growth of disposable asset sales. The profitability of commercial income slowed. Signs of potential strain ap- banks also appears to have increased in 1985, peared, as the delinquency rate for consumer breaking the downtrend of recent years. Asset quality remained a concern for some institutions, installment loans rose, although most measures however, and was a major factor in the sharp of debt quality remained well within past experi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 225 increase in the number of bank failures. Banks been priced very close to Treasury issues of apparently again increased the rates at which comparable maturity, yielded as much as 100 they charged off bad loans and added to loan-loss basis points more than Treasury debt at one reserves, reflecting continued financial strains in point in the fall. Rate spreads narrowed in Desuch industries as agriculture, energy, and real cember, after passage of legislation enabling the estate. Higher profits along with the rallies in Farm Credit System to mobilize its resources stock and bond markets helped many banks more readily and providing for the possibility of a improve their capital positions in 1985, facilitat- backup source of assistance once internal ing efforts to comply with more stringent capital sources of funds are exhausted. adequacy guidelines. As part of its efforts to To ease possible constraints on the availability ensure the continued safety and soundness of the of credit at agricultural banks over the 1985 financial system, the Federal Reserve also initi- growing season, the Federal Reserve in March ated a program to strengthen supervision of liberalized its regular seasonal borrowing procommercial banking operations. gram and initiated a temporary special seasonal Agricultural finances drew special attention program aimed at making liquidity available to last year. Farm income remained depressed, and agricultural banks that might experience strong falling prices for agricultural products left many loan demand. Although total seasonal borrowing farmers unable to meet their debt-servicing re- fell short of the unusually high level in 1984, quirements. Moreover, declining land prices evidence suggests that these actions increased eroded the value of collateral behind many agri- access to seasonal credit, boosting borrowing cultural loans. Consequently, failures of banks somewhat above what would otherwise have with relatively high proportions of agricultural been expected, given money market conditions loans in their portfolios rose to 68 in 1985, from and overall slack loan demand by farmers. In 32 in 1984 and an average of just 6 in each of the early 1986, the Federal Reserve renewed the preceding three years. The Farm Credit System, temporary seasonal program to assure that agriwhich holds about one-third of U.S. agriculture's cultural banks would not face liquidity condebt, experienced mounting losses and requested straints in accommodating the needs of their federal aid. Farm Credit securities, which had farm borrowers this year. APPENDIX A: VELOCITIES OF THE and income. First, interest rates at the end of last MONETARY AGGREGATES IN THE 1980S year were substantially below their peak levels in 1981. With such a decline, the earnings forgone In 1985, the relationship between Ml and nomi- in holding money, with its liquidity advantage, nal GNP diverged substantially from historical were considerably reduced, and preferences for patterns as Ml velocity registered a sharp drop money relative to other financial assets would be of 5Vi percent. In contrast to the increases that expected to increase in response. As this ochad doubled velocity over the course of the 1960s curred, the velocity of Ml would be expected to and 1970s, last year's decrease left Ml velocity decline. about 8 percent below its 1981 peak level. Veloc- Second, deposit rate deregulation has changed ities of the broader monetary aggregates also the pricing behavior and yield comparisons bedeclined in 1985, but these declines were not so tween some Ml deposits and other deposits and far off their historical norms. financial instruments. Whereas earlier only non- The downward trend of Ml velocity so far in interest-bearing assets—demand deposits and the 1980s differs markedly from the annual rate currency—directly served transaction needs, in of increase of VA percent averaged during the the 1980s individuals have had available for preceding two decades. Two developments in transaction purposes first NOW accounts with a recent years appear especially pertinent to ex- 5VA percent ceiling and subsequently Super NOW plaining the changed relationship between Ml accounts with higher, competitively set rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
226 Federal Reserve Bulletin • April 1986 These institutional changes have reduced pres- Not only does the responsiveness of Ml to sures for innovations that would enable deposi- interest rates and income seem to have changed tors to conserve on Ml holdings or use them in the 1980s, but the behavior of Ml also appears more intensively to support spending. Such inno- to have become less predictable on other vations had contributed to the previous uptrend grounds. In part, the increased unpredictability in Ml velocity. But also, the proliferation of of Ml demand is due to the larger share of interest-bearing checkable deposits for individ- savings balances in Ml, which has made general uals, nonprofit organizations, and governmental portfolio-balance considerations a more imporunits has altered the balance of motives for tant influence. Over the past several years, deholding Ml deposits, making them more attrac- posit rate deregulation has given institutions tive repositories for savings as well as transac- vastly increased freedom to set deposit rates and tion funds and probably increasing the senstivity has provided their customers with a larger menu of Ml demand to changes in market interest of assets paying market-related rates. With regurates. This effect has grown in importance as lations progressively changing and depositors interest-bearing checkable deposits have grown. and depository institutions continually adapting Such accounts have proven enormously popular; to the changes, uncertainty has increased conat the end of last year, almost $180 billion in cerning the impact on money demand of variainterest-bearing checkable accounts was out- tions in economic and financial conditions, instanding, including more than $60 billion in Su- cluding changes in wealth of money holders. per NOWs, which have been available for only Moreover, since the process of deposit rate three years. The total figure compares with out- deregulation has occurred alongside a general standing balances of less than $30 billion when decline in inflation and market interest rates, the NOW accounts were first authorized on a nation- reasons for and permanence of apparent shifts in wide basis at the end of 1980. By the end of 1985 Ml behavior often have been obscured. interest-bearing checkable deposits had grown to The declines in the velocities of M2 and M3 about 30 percent of Ml and 40 percent of the last year were neither as large as in that of Ml, deposit component of that aggregate. nor as far from their longer-term trends. The The resulting higher interest rate sensitivity of velocity of M2 has declined in recent years, but the public's demand for Ml relates to the fact on balance has shown little change over recent that when market rates decline, the opportunity decades. While last year's drop in the velocity of cost—the gap between those rates and the fixed M2 was about twice the average of the past ceiling on NOWs—declines in percentage terms several years, its size was within historical expemuch more than do market rates themselves. rience. The decline of M3 velocity was some- And the tendency of offering rates on Super what smaller than in recent years and continued NOWs to lag changes in market rates has made a long-term downtrend in that measure. Nevertheir opportunity costs also move like those on theless, the behavior of the broader aggregates fixed-rate accounts in the short run. Recent probably has been altered by developments in trends at depository institutions toward applying the 1980s. For example, the interest rate responhigher interest rates or lower fees to transaction siveness of M2 probably has declined with deregaccounts with higher balances have probably ulation, which has permitted the yields on many further changed opportunity cost calculations. of its components to vary with market rates. This "tiering" can have the effect of providing a While this aggregate continues to show strong very high rate of return—and thus a low opportu- responses to rates over short periods, over internity cost—on funds added to an account be- vals of a half year or more it has been far less cause, for example, per-check charges or other affected than Ml. fees may cease to apply at the new larger balance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 227 APPENDIX B: EXPERIMENTAL MONEY gates. In conventional Ml and Ml-A, the implied STOCK INDEXES weights are simply dollar shares of each component in the total. In MQ, the weights on the Financial deregulation and innovation since the growth rates of components reflect not only mid-1970s have blurred distinctions between differences in dollar amounts among components transaction and nontransaction balances. As bus- but also differences in the estimated intensity inesses and consumers have changed their pay- with which the various components are used in ment practices and portfolios of financial assets, carrying out GNP transactions. Thus, instead of uncertainty about the behavior of conventional dollar quantity shares, MQ uses as weights the monetary aggregates and their ability to fore- estimated share of GNP spending financed by shadow movements in GNP has intensified. The each component. narrow aggregate Ml has been affected most The implied quantity-share weight on the noticeably. This aggregate consists of currency, growth rate of other checkable deposits in Ml demand deposits, and checkable deposits paying growth was about 26 percent in 1985, meaning interest, mainly NOW accounts. The share of Ml that the 22 percent growth in this component last balances paying interest has grown substantially year contributed about 53/t percentage points (26 and is held partly for savings purposes. In 1982— percent x 22 percent = 53/4 percent) to the growth 83 and again in 1985, growth of Ml was unusually rate of Ml. Because they are excluded from strong relative to GNP. Old Ml-A, which in- Ml-A, these deposits receive a zero weight in cludes only currency and demand deposits, was Ml-A growth. The weight on the growth of other less affected in those years, but because it ex- checkable deposits in MQ growth was about 12!/2 cludes NOWs, it understates transaction money. percent in 1985, so the rapid growth in this In 1981, Ml-A was considerably distorted as component contributed only about 23/4 percentdemand deposits were shifted into NOWs, which age points to MQ's growth rate over last had been newly authorized nationwide. year. In light of these developments, the Board's When applied to the component growth rates, staff has investigated several alternative mea- these weights produce the growth rates for MQ sures of money. This appendix focuses mainly on and the conventional narrow aggregates. MQ the transaction money stock measure, MQ. Its grew somewhat faster in the mid-1970s than Ml. components encompass currency and all check- Over that period, demand deposit growth, which able instruments that serve as means of payment, was relatively weak, received a lower weight in including money market deposit accounts MQ, and currency growth a higher weight, than (MMDAs) and certain money market funds, both in Ml. Since then, MQ growth has been between of which have limited check-writing features. In growth of Ml-A and Ml. Although, in principle, contrast to the conventional aggregates, though, MQ tends to adjust automatically for changes in MQ is an index number. In general, index num- payments practices, the experience in 1981 with bers are used to combine items that have dissimi- major shifts from demand deposits to nationwide lar characteristics; an example would be the NOWs exemplifies the practical difficulties in differing economic values of the various items in developing appropriate weighting procedures. the industrial production index. In MQ, compo- Still, Ml-A was even more distorted than MQ in nents are treated conceptually as differing in the 1981. Over 1985, MQ growth was about l3/4 volume of "GNP transactions" each finances percentage points slower than conventional Ml per dollar, notwithstanding their common unit of growth but around 2 percentage points faster account of one dollar. than Ml-A growth. MQ and conventional narrow monetary aggre- In 1983, M2 growth was distorted upward by gates are alike in that the growth rate of either the introduction of MMDAs, but otherwise it has can be thought of as a weighted average of the been rather steady since the late 1970s. growth rates of its components. But the weights Annual velocity growth for MQ, has been applied to the growth rates of components are between the growth rates of VI and VI-A since not equal for these different monetary aggre- the late 1970s. Over 1985, as over 1982, all three Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
228 Federal Reserve Bulletin • April 1986 velocities fell, with VI registering the steepest well as to improve the basic method of weighting declines in both years. Velocities of the broader major outflows from particular accounts, such as conventional aggregates, declined at about the those distorting MQ in 1981. At this time, howevsame rate as VI in 1982 but by less than VI in er, understanding the significance of movements 1985. in MQ is hampered not only by limited experi- The predictability of MQ's demand, given in- ence with the aggregate but also by unresolved terest rate spreads and GNP, has been roughly conceptual and measurement questions. comparable with that of Ml and Ml-A demand In addition to MQ, several other monetary on average over the 1980s, with all three narrow indexes have been constructed experimentally. aggregates exhibiting unexpectedly large in- The transaction money stock index, MT, is simicreases in 1985 relative to econometric predic- lar in concept to MQ but focuses on the way tions. In 1982-83, however, MQ's demand was money is used for all transactions, including more predictable than either Ml or Ml-A. None payments associated with financial trading, interof the three has been appreciably superior in its mediate output, and so forth, instead of just GNP ability to presage movements in nominal GNP so spending. In a different approach to monetary far in the 1980s, on the basis of statistical rela- indexes, these monetary services indexes have tions that held on average over the 1970s; each been constructed to reflect a broader view of signaled considerably more nominal GNP growth money as providing a range of services, such as than actually occurred in 1982-83 and again in liquidity, that goes beyond the means of pay- 1985. The broader conventional measures per- ment, and these indexes correspondingly encomformed better than MQ, as well as conventional pass broader collections of component assets; narrow measures, in these relatively simple tests such indexes distinguish components by the estiof their demand and indicator properties for the mated opportunity cost of holding each monetary 1980s, but they were less reliable indicators of asset rather than investing in the highest-yielding GNP in the previous decade. alternative financial asset. As with MQ, concep- Research is continuing on the development of tual and measurement problems remain to be MQ and the assessment of its demand and indica- solved for these other experimental indexes, tor properties. Efforts are under way to refine the which thus far do not appear to perform as well procedures used to estimate MQ's weights, as as conventional aggregates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
229 Staff Studies The staffs of the Board of Governors of the indicate concurrence by the Board of Governors, Federal Reserve System and of the Federal by the Federal Reserve Banks, or by the mem- Reserve Banks undertake studies that cover a bers of their staffs. wide range of economic and financial subjects. Single copies of the full text of each of the From time to time the results of studies that are studies or papers summarized in the BULLETIN of general interest to the professions and to are available without charge. The list of Federal others are summarized in the FEDERAL RESERVE Reserve Board publications at the back of each BULLETIN. BULLETIN includes a separate section entitled The analyses and conclusions set forth are "Staff Studies" that lists the studies that are those of the authors and do not necessarily currently available. STUDY SUMMARY THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN BANKING BEFORE AND AFTER ACQUISITION By Stephen A. Rhoades—Staff, Board of Governors Prepared as a staff paper in late 1985 In recent years, the belief that mergers generally rates, operating expenses, and the changes in result in the ousting of bad management and the market share of acquired banks for the three improvement of the performance of the acquired years before acquisition and the fourth through firms has become more prevalent. This study sixth years after acquisition is the subject of the tests the hypotheses that acquiring firms tend (1) investigation. to acquire poor performers and (2) to improve Test results indicate that acquired banks perthe performance of acquired firms. form no differently than nonacquired banks ei- The statistical analysis focuses on acquired ther before or after acquisition. The analysis banks both before and after acquisition. Cross- concludes that bank mergers do not tend to rid section tests are conducted for each of the six the system of poorly performing (presumably even-numbered years from 1968 through 1978. poorly managed) firms and they do not tend to The tests include the majority of banks acquired improve the operating performance of acquired by bank holding companies during these years units. These findings are similar to earlier findalong with 3,600 nonacquired banks for compari- ings for the banking industry and the findings of son. Operating performance in terms of profit similar studies for the industrial sector. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
230 Industrial Production Released for publication February 14 average, the index in January was 2.5 percent higher than that of a year earlier. Industrial production increased an estimated 0.3 In market groups, output of consumer goods percent in January following a rise of 0.7 percent increased 0.9 percent in January following sizin December and an upward revised gain of 0.8 able gains in November and December. Durable percent in November. Increases in output were consumer goods rose 2.2 percent in January, large for consumer goods and construction sup- reflecting mainly an increase in auto assemblies plies in January. At 126.7 percent of the 1977 to a seasonally adjusted annual rate of 8.4 million Ratio scale, 1977 = 100 140 - - 120 _ Products - — / / Materials i i i i i MATERIALS Durable —— > —-Cs Nondurable v 1 rk'IL'Y \y i i i 1 1 1 INTERMEDIATE PRODUCTS Business supplies ,J / y Construction supplies J I I 240 FINAL PRODUCTS 200 Defense and space 160 Business equipment 140 120 100 Consumer goods 1980 1982 1984 1986 1980 1982 1984 1986 All series are seasonally adjusted. Latest figures: January. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
231 1977 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Group 1985 1986 1985 1986 JJJaaannn... 111999888555 tttooo JJJaaannn... Dec. Jan. Sept. Oct. Nov. Dec. Jan. 111999888666 Major market groups Total industrial production 126.3 126.7 .0 -.6 .8 .7 .3 2.5 Products, total 134.4 135.0 .1 -1.0 1.3 .6 .5 4.2 Final products 134.7 135.4 .0 -1.1 1.4 .7 .5 3.8 Consumer goods 124.2 125.2 .3 -.8 1.6 1.1 .9 5.4 Durable 116.8 119.4 -1.0 -1.4 3.8 1.1 2.2 5.9 Nondurable 126.9 127.4 .7 -.6 .9 1.2 .4 5.2 Business equipment.. 142.2 143.0 -.6 -1.8 1.5 .3 .6 1.8 Defense and space... 180.7 180.4 1.1 .6 1.2 .0 -.2 9.1 Intermediate products.. 133.2 133.9 .3 -.7 1.0 .4 .5 5.6 Construction supplies 121.1 122.2 -.2 -1.1 .8 .1 .9 5.1 Materials 115.2 115.3 -.3 .0 .0 .9 .1 -.1 Major industry groups Manufacturing. 129.3 129.8 -.4 .9 .4 3.1 Durable 130.1 130.8 -.8 1.1 .5 2.3 Nondurable . 128.2 128.4 .2 .6 .2 4.3 Mining 107.0 108.2 .1 -1.2 1.1 -2.1 Utilities 114.4 113.2 2.6 .5 -1.1 .2 NOTE. Indexes are seasonally adjusted. units from the rate of 8.1 million in December. construction supplies increased 0.9 percent in Production of home goods also continued to January. Production of materials edged up in show gains. Nondurable goods rose 0.4 percent, January, as durable goods materials increased after having posted stronger increases in Novem- 0.3 percent and nondurables 0.1 percent. Output ber and December. of energy materials declined 0.6 percent. Output of business equipment increased 0.6 In industry groups, manufacturing output rose percent in January, regaining its previous peak of 0.4 percent, with gains of 0.5 percent in durable August 1985; increases were concentrated in manufacturing and 0.2 percent in nondurables. transit equipment. Production of defense and Mining activity rose 1.1 percent in January, but space equipment edged down 0.2 percent in output at utilities declined 1.1 percent following a January following no change in December and an rise of 1.3 percent in December. increase of 1.2 percent in November. Output of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
233 Statements to Congress Statement by Paul A. Volcker, Chairman, Board Congress and the administration toward budgetof Governors of the Federal Reserve System, ary restraint offer the potential for dealing with before the Committee on Banking, Finance and two of the major, and interrelated, imbalances in Urban Affairs, U.S. House of Representatives, the economy that I have spoken about with you February 19, 1986. so often—the enormous fiscal and trade deficits. Altogether, the opportunity clearly remains for I am pleased once again to appear before this combining sustained expansion with greater committee to discuss the approach of Federal price stability in the period ahead, building on Reserve policy within the larger economic set- the progress of the past three years. In my ting at home and abroad. judgment, the present expansion—already longer As you know, 1986 has begun with the econo- than the postwar average for peacetime years—is my continuing to move forward after more than not about to die from old age or sheer exhausthree years of expansion. Today, more people tion. We do not have the pressures on capacity, are employed relative to the working age popula- the excess inventories, the accelerating costs and tion than ever before recorded. Unemployment prices, or the rising interest rates that have has continued to fall. Happily, the continuing typically presaged cyclical downturns in the expansion has so far been achieved while infla- past. tion has remained at the lowest rate in more than Yet, any claim that we live in an economy in a decade. which every prospect pleases would be idle Looking ahead, there are some highly encour- pretense. There are evident points of economic aging signs as well. The larger employment pressure and financial strain, some of them agincreases in recent months are reflected in rela- gravated by the sharp decline in oil prices. While tively confident attitudes by consumers. Manu- the adverse trends are being changed, the deficits facturing output as a whole, which had been in our budget and trade accounts will take years sluggish during much of 1985, is again rising even to correct. And we have long since passed the though many areas continue to face strong com- time when we could, with any validity, insulate petition from abroad. Lower interest rates and ourselves from the difficulties of neighbors and higher stock prices—buoyed, in part, by the trading partners to which we are bound by strong action of the Congress in improving prospects for ties of finance and trade. declining federal deficits in the years ahead— Most of these threats, in magnitude and in have made it less expensive to finance new combination, are unique, certainly in our postbusiness investment and housing. With few ex- war experience. They demand our full attention ceptions, excessive inventories, often in the past if we are to deal with them successfully. a harbinger of economic adjustments, appear Take, for instance, the trade problem. The absent. dollar had risen to extraordinarily high levels by While productivity growth has been rather early 1985, with the effect of undercutting our disappointing, wage restraint in much of industry trade position vis-a-vis major industrial competiand lower commodity prices have kept costs tors. At the same time, the relatively rapid under control. The sharp break in oil prices growth in demand for goods and services in the should be an important force cutting costs and United States, at a time of sluggish growth prices in the period immediately ahead, in the abroad, attracted a large volume of imports. The process releasing real purchasing power to U.S. net result was to drive our trade deficit to a rate consumers. Moreover, changes in exchange of close to $150 billion by the end of last year and rates and the welcome initiatives taken by the to about $125 billion for the year as a whole. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
234 Federal Reserve Bulletin • April 1986 No doubt, given the extreme values the dollar tion of our currency but on greater growth by our had attained internationally in 1984 and early trading partners. More competitive pricing is of 1985, an adjustment in exchange rates has been a limited value when foreign markets are not grownecessary part of achieving a better competitive ing strongly and when producers abroad do not equilibrium and of responding to destructive themselves have expanding, profitable markets protectionist pressures. That fact was explicitly at home. recognized in the meeting of the finance minis- Prospects in that respect remain quite mixed. ters and the central bankers of the five leading There have been signs of somewhat stronger industrialized countries in September. By now, a growth in Germany and elsewhere in continental substantial adjustment in exchange rates has Europe. However, it remains questionable been made, placing our producers in a stronger whether that growth will, in fact, be strong competitive position. enough to reduce appreciably continued high But we also know, from hard experience here levels of unemployment, now averaging more and abroad, that changes in actual trade flows than 10 percent for the continent as a whole. In necessarily lag changes in exchange rates by a Japan, where unemployment is historically at period extending into years, that currency ad- much lower levels, growth by those same historijustments can assume a momentum of their own, cal standards is sluggish, with the appreciation of and that sharp depreciation in the external value the yen itself a restraining factor. of a currency carries pervasive inflationary As appropriately emphasized at the September threats. G-5 meeting, a better world equilibrium, includ- No doubt, some depreciation in the dollar, ing more rapid improvement in our trade balafter the rapid runup, could be absorbed without ance, is clearly dependent on structural and a sharp or immediate impact on domestic prices. other measures to deal with the sources of the But we cannot afford to be complacent. Inevita- imbalances. The Gramm-Rudman-Hollings legbly, prospects for balance in our internal capital islation represents one important approach to markets—and therefore prospects for interest that end. Stronger growth patterns in other leadrates—remain for the time being heavily depen- ing countries are also directly relevant. The dent on the willingness of foreigners to place opportunities for policies to work toward that huge amounts of funds in dollars and on the result this year appear to be greatly enhanced by incentives for Americans to employ their money the strongly beneficial effects of the declines in at home. In essence, the financing of both our oil prices and the appreciation of currencies of current account deficit and our internal capital other leading countries. Both developments reinneeds—as long as the government deficit re- force the already strong prospects for price stamains so high—is dependent on a historically bility in those countries. high net capital inflow. Clearly, the orderly bal- Should oil prices remain close to present levancing of our demands for funds with supply in els, that development will also be a powerful those circumstances requires continued confi- force offsetting, and in the short run probably dence in our currency. more than offsetting, the direct and indirect I recognize and appreciate the importance of effects of the lower international value of the the efforts that the Congress and the administra- dollar on our overall price performance. At the tion have made to place the budget deficit on a same time, the effect is to release real purchasing declining trend. I know that effort will continue power and cash flow to American consumers and to require the hardest kind of choices. But we oil-consuming businesses. The potential addition can also see some of the potential benefits in to real consumer income should work in the improved market sentiment. The net result direction of offsetting the effects on purchasing should be both to reduce risks of inflation and to power that some have foreseen in the full implemake us less dependent on foreign financing in mentation of the deficit reduction program called the years ahead. for by the Gramm-Rudman-Hollings legislation At the same time, oil imports apart, improve- over the course of this year. ment in our trade balance for the next year or With similarly beneficial effects for other conlonger is in large part dependent not on deprecia- suming countries, that development is part of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 235 basis for a sense of growing optimism about physical capacity. Over the past six months, for world economic prospects. But, of course, the instance, the unemployment rate has dropped a effects are sharply adverse for energy producers, full Vi percentage point—desirable in itself but affecting important regions in the United States accompanied by a recorded annual rate of output where energy production and exploration loom growth of only 23/4 percent. so large, and therefore prospects for investment In the end, it is largely productivity that govas a whole. The added strains for certain already erns prospects for growth in per capita income; heavily indebted developing countries are even together with growth in the number of workers, it more acute. Moreover, the pervasive pressures sets a limit on our total economic growth. Fortuon much of the agricultural sector in this country nately, in developing monetary policies now, we remain, although recent legislation by the Con- do not need to reach precise judgments about our gress addressed—and should help stem—further long-term growth potential; today, capacity utilideterioration. zation is still somewhat below, and unemploy- These sectoral strains and imbalances point up ment somewhat above, average levels for perithe crucial importance of maintaining the essen- ods of business prosperity. Recent productivity tial safety and soundness of our financial system, trends, nonetheless, do introduce an unwelcome and in particular our depository institutions. For cautionary note about the longer run. a long time, that was something we in this country thought we could take for granted. And it was partly that feeling, combined with acceler- MONETARY POLICY ating inflation and other factors, that contributed to much more aggressive lending behavior over Any description of the opportunities and risks in the years—lending that has led to unanticipated the current economic situation points up the fact problems in a period of disinflation and greater that the formulation and implementation of moncompetitive pressures. Today, measures to pro- etary policy need to take account of a variety of tect the basic financial fabric necessarily assume sometimes conflicting objectives and criteria. In a high priority, and that effort will require appro- the current setting, other policy approaches— priate action by the Congress as well as by the toward the budget, toward international finance, regulatory authorities. toward trade, and toward other areas—are obvi- Finally, in surveying the economic setting for ously critical to the success of the common monetary policy, I must call your attention to the effort, just as the pervasive and indirect effects of disappointing record with respect to productivity monetary policy can bear upon the success of over recent years viewed generally, at least as other policies beyond the strictly financial. recorded by the standard national statistics. De- Moreover, institutional and economic changes velopments in that respect during 1985, when have strongly affected the behavior of certain productivity for nonfarm businesses as a whole policy guideposts—notably Ml and debt—relashowed no growth, are hard to explain. In manu- tive to other economic magnitudes. Consequentfacturing, where recorded performance is sub- ly, I do not believe that in current circumstances stantially better than in other sectors, the slower there is any escape from the need for a substanproductivity growth may be a reflection of the tial element of judgment in the conduct of Federleveling of output. But other sectors were grow- al Reserve policies. ing relatively fast, without reflection in produc- That need was illustrated in 1985. Over the tivity improvement. course of the year, monetary policy remained in Perhaps part of the seeming problem lies in the a generally accommodative mode in the sense inherent difficulty in measuring the volume and that pressures on bank reserve positions were quality of output in the dominant service sector both limited and little changed. The discount rate of the economy. But the results do raise further was reduced once in the spring, from 8 to IV2 questions about the growth potential of the econ- percent, and most market interest rates declined omy as recorded by the GNP statistics—how fast 1 to 2 percentage points, generally reaching the can we expect the GNP to grow in a sustained lowest levels since mid-1979 or before. way without excessive pressures on human or As illustrated in charts 2 and 3, the broader Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
236 Federal Reserve Bulletin • April 1986 1. Ml target ranges and actual Ml evidence. During much of 1984 and 1985, domestic demand—the spending of consumers, busi- Billions of dollars 8%^, 680 nesses, and governments—continued to expand at a rate well beyond the rate of domestic output, measured by the GNP. In fact, the rate of 640 demand increase, if maintained, would probably ^ ^ ^ ^ ^^ 3% be beyond our long-term growth potential. In Actual Ml that sense we continued to live beyond our 600 means, at the expense of a widening trade deficit. Moreover, private as well as public debt continued to accumulate at a historically rapid rate, m • . 560 running above the "monitoring range" of 9 to 12 percent set out at the start of the year. The i "Cl \ i i i i i i ri I i 1 I I I i l l) ti ll 1984 1985 1986 aggregate debt statistics, portrayed in relation to Monthly data. GNP in chart 4, exaggerate the problem to some degree. There has been massive issuance of taxmonetary aggregates, M2 and M3, remained gen- exempt securities in anticipation of tax law erally within the ranges targeted at the start of changes, for reinvestment in Treasury securities, the year. At the same time, however, the narrow- in pending subsequent refundings, and for fily defined measure of the "money supply," Ml, nancing home purchases and industrial developgrew persistently above the range set both at the ment. These activities lead to "double counting" start of the year and again after the range was in the aggregate statistics because both the new reset in July. (See chart 1). That aggregate ended municipal debt and the debt acquired in employthe year almost 12 percent above the year-earlier ing the funds borrowed are included in the total. level, an historically high rate of growth. At the same time, substitution of debt for equity In technical terms, that large "overshoot" was by businesses continued unabated, with about permitted in the light of a persistent and sizable $100 billion of equity retired by a combination of decline in Ml "velocity"—that is, the relation- stock repurchase programs, so-called leveraged buyouts, and as part of mergers and acquisitions. ship between Ml and the nominal GNP. That decline in velocity was apparent whether mea- The strongly rising stock market and lower sured contemporaneously or with a one- or two- interest rates had the effect of greatly increasing quarter lag between money and GNP. In other consumer wealth, measured by current market words, the exceptional growth in Ml seemed to values, and lowering the cost of capital to busibe matched by an equally exceptional decline in ness. Nonetheless, the trend of debt creation, velocity, suggesting that the high Ml growth in with its implications of greater leveraging and 1985 does not imply the same inflationary potential, at least for the near term, as in the past. 2. M2 target ranges and actual M2 Less abstractly, the judgment of the Federal Billions of dollars Open Market Committee as the year developed 9% was that the rather strong restrictive action that would have been necessary to maintain Ml within its targeted range was not justified in the light of the different signals conveyed by the much more restrained growth in M2 and M3, the slower growth in overall economic activity, the margins of capacity that remained, and the continuing progress toward price stability. For much of the year, the dollar remained high, and that fact was another strong signal that monetary policy was not unduly liberal. We were aware, of course, of some conflicting Monthly data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 237 3. M3 target ranges and actual M3 were generally trending upward—will probably not be typical of a world in which inflation and Billions of dollars interest rates are trending downward and in which Ml has a growing savings component. 2. Ml may be more sensitive to short-term fluctuations in interest rates. For 1985 specifically, our work strongly indicates that much of the unexpected decline in Ml velocity was a response to the sharp reduction in interest rates late in 1984, continuing at a lesser pace over much of last year. In a context of contained inflation, a generally strong dollar, and more muted economic growth, the decline in interest rates did not appear in itself to risk Monthly data. excessive economic stimulation, with renewed inflationary potential. Moreover, neither of the potential financial fragility, remains disquieting, broader monetary aggregates, which remained particularly in an environment of progress to- within their target ranges, confirmed excessive ward greater price stability. Indeed, as I suggest- monetary expansion. ed earlier, there is already ample evidence in the Looking ahead to 1986, the FOMC decided to financial area of the consequences for individual take account of the greater uncertainty associatinstitutions of extended financial positions and ed with the relationship between Ml and ecounduly loose credit standards. The crises in the nomic activity and prices by adopting a relatively thrift industry in Maryland and Ohio, where broad Ml target range of 3 to 8 percent. While federal insurance and supervision were absent, wider, that range is centered on the same midillustrated in an extreme form the consequences point, 5VI percent, as the tentative 4 to 7 percent of essentially speculative lending and lax market range that was set out last July. In fixing that practices. range, the Committee anticipated that velocity A more pointed question for the deliberations would not drop at nearly the rate of 1985. Withof the FOMC has been the lasting significance of out some reversal of the sharp drop in velocity the sizable increase in Ml. We are well aware, as last year, growth toward the upper end of the I have often reported to this committee, of the range could well be appropriate. More broadly, long history and of the economic analysis that the Committee agreed that changes in Ml would relate excessive money growth to inflation over be evaluated in the light of the presence—or the time. The operational question remains as to absence—of confirming evidence of excessive what, in specific circumstances, is, in fact, excessive in the light of recent velocity behavior. 4. Ratio of domestic nonfinancial sector debt to GNP That question is greatly complicated by the Ratio changed composition of Ml, which now includes accounts that receive interest close to market levels and clearly have a large "savings" as well as a "transaction-oriented" component. The disinflationary process and the associated decline in market interest rates also have implications for the willingness to hold money. Enough evidence has now accumulated since the peak inflation years to suggest the following two conclusions: 1. The long upward trend in velocity of 3 i i i t'V \ i i i i- i - . " v: i- -i -1;:i (v i. t,., percent or so characteristic of most of the post- I960 1965 1970 1975 1980 1985 war period—when inflation and interest rates Monthly data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
238 Federal Reserve Bulletin • April 1986 growth in M2 and M3. For both those aggregates, mentation, there has been no occasion for signifithe tentative growth ranges of 6 to 9 percent set cant change in the degree of pressure on bank in July were reaffirmed.1 reserve positions. As you know, both intermedi- In establishing these target ranges, members of ate- and long-term interest rates have been dethe Federal Reserve Board and the Reserve clining to the lowest levels seen in years and the Bank Presidents anticipated that the economy stock market has been ebullient. The justificawould grow somewhat more rapidly than in 1985 tion, and the sustainability, of those developand that the unemployment rate would continue ments lies in a combination of prospects for to decline gradually. Views on the outlook for budgetary restraint, the favorable impact of lowprices were rather mixed, with some anticipating er oil prices, and improved inflationary expectameasurable further progress toward stability, tions and performance. The challenge for moneparticularly in the light of the oil price decline, tary policy, insofar as it can contribute, is to help while others expected that the consequences of assure that those favorable prospects for mainthe lower exchange rate may, for a time, put taining progress toward stability can be a reality stronger upward pressure on prices. While the in the context of a growing economy. The imple- "central tendency" of the projections for real mentation of policy will be conducted in the light growth is lower than that of the administration, of that objective. so are most of the projections of prices by participants in the FOMC. The differences are not so large as to suggest, in themselves, incon- RELATED APPROACHES sistency with the monetary growth targets; indeed, several Board Members and Presidents I referred earlier to the pressures in some areas anticipated real growth in the area of 4 percent. I of the credit markets growing in large part out of might also note that the somewhat lower unemthe backwash of overly aggressive lending poliployment rate generally anticipated by the Comcies in the earlier climate of accelerating inflamittee participants suggests more limited protion. Indeed, those concerns have been aggravatductivity growth than that implied by the ed in more recent years by a continued highly administration projections. aggressive approach by some institutions seeking Monetary policy is implemented day by day high returns, with their own liabilities effectively and week by week by determining the appropri- underwritten by federal insurance. These probate degree of pressure on bank reserve positions lems, and appropriate responses to them, are too in the light of monetary growth, judged in the large a subject for me to deal with in the time context of the flow of information about the available today; we have discussed them before economy, the outlook for prices, and domestic on a number of occasions. and international financial markets, including the I do want to report, however, that the Federal value of the dollar in the foreign exchange mar- Reserve has under way a number of initiatives to kets. In the latter connection, circumstances help deal with the problems more effectively. now are, of course, very different from those These initiatives include strengthening our force during most of 1985. The potential inflationary of examiners and supervisory personnel so that implications of further depreciation of the dollar, they are equipped to meet higher standards in the while likely to be offset for some time by lower frequency and intensity of examination of memoil prices, need to be fully considered in the ber banks and holding companies. Certain reguimplementation of policy. latory steps have been undertaken as well. Spe- At present, with the various monetary aggre- cifically, we have issued for public comment a gates at reasonable levels relative to their new proposal for a framework of "adjusted capitaltarget ranges, and taking account of the cross- asset ratios" designed to supplement our present currents in other factors bearing on policy imple- capital standards. The proposed standards are designed to take account of the different characteristics of bank assets and to incorporate allow- 1. These new ranges, and the related monitoring range for ance for off-balance-sheet risks that have been debt, in comparison with ranges for 1985 are shown in the table on page 214 of this BULLETIN. proliferating rapidly at major banks here and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 239 abroad in recent years. I know other regulatory in the context of overall financial and economic agencies have comparable initiatives under way policies conducive to sustained growth. That in the supervisory and regulatory area. solution, in turn, requires complementary ac- By its nature, this supervisory effort must be a tions by the borrowing countries, by creditors, continuing process, although it has particular and by multilateral development institutions relevance in this turbulent period. alike. Moreover, I can only emphasize to you again In essence, the borrowing countries themmy longstanding concern that you act, and act selves—"Baker Plan" or not—appear to have soon, to modernize our basic laws governing the the strongest kind of incentives to take those structure and nature of our depository system. actions necessary to improve the efficiency and After decades of little change in the legal struc- competitiveness of their own economies, includture, technological and market developments ing the development of their potentially vast nonhave together created a new competitive envi- oil resources. Those fundamental measures will ronment. That change, without a coherent legis- be more effective, with faster results, to the lative framework, has sown enormous confusion degree those nations also have greater assurance about the proper and legitimate role of banks, of access to growing external markets for their bank holding companies, thrift institutions, and products. Resistance to protectionism should, of their commercial and financial competitors. Reg- course, be easier to achieve in a context of an ulatory decisions attempting to apply current expanding world economy, the prospects for laws, sometimes conflicting in themselves, are which should be enhanced by the same decline in regularly challenged in the courts. The results oil prices that makes the pressures more acute are capricious as both regulatory bodies and the for oil-producing countries. courts inevitably reach different conclusions in The restructuring process can be greatly asambiguous circumstances. sisted by cooperation with such institutions as The courts themselves in recent decisions the World Bank and the Inter-American Develhave emphasized the need for fresh congression- opment Bank, which have funds available for al guidance. I can only reiterate my own view substantially larger loan programs in support of that, without such a review, the banking and fundamental economic adjustments, and with the thrift industries are left adrift, driven to exploit International Monetary Fund. On that basis, I perceived loopholes in present law, on the one believe necessary margins of external private hand, while, on the other hand, their basic and investment or loans can continue to be made regulated business is undercut by commercial available prudently to meet essential external organizations and investment houses operating needs. Indeed, without complementary policies without the protections provided by the federal by international institutions and creditors, the "safety net." The result is a clear threat not only will to find constructive outward-looking soluto the coherence but also to the safety and tions to the problems by the borrowers themsoundness of the whole. Time is growing short. selves will inevitably be undermined, and the From another perspective, the decline in oil adverse implications would extend far beyond prices has presented an enormous new challenge the economic arena. to a few countries that have been heavily depen- For some heavily indebted countries that eident on oil resources for the development of their ther import a sizable portion of their energy own economies. The problem is particularly requirements or are essentially neutral in that acute with respect to Mexico, with which we respect, recent developments should ease the have close trade and financial relationships, but task. But I do not in any way want to minimize it is certainly not limited to that country. the challenge for others—for Mexico, Ecuador, In the broadest terms, the initiatives outlined Nigeria, and Venezuela. What I do suggest is by Secretary Baker some months ago for manag- that the fundamental premises of the total effort ing a "second stage" of the international debt by borrowers and creditors alike in managing the crisis provide a constructive and needed overall debt situation remain valid. I believe that, with framework for dealing with problems. He em- will and wisdom, the basis remains for working phasized the importance of achieving a solution through this inevitably difficult period in a way Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
240 Federal Reserve Bulletin • April 1986 that ultimately will reinforce prospects for long- reality. Whatever the fortunes of the Grammer-term growth. Rudman-Hollings legislation in the courts or the merits of that particular approach toward the problem, the direction and broad spirit of the CONCLUSION effort is essential if we are to correct deep-seated imbalances that, sooner or later, would only I conclude as I started. undercut our bright prospects. With constructive policy responses, recent de- The success of all our efforts is dependent in velopments carry the potential for enhancing substantial part on complementary policies by prospects here and elsewhere for a sustained other countries—their success in enhancing their period of growth in a context of price stability. growth and stability, in opening markets to oth- Those are the common goals of the Congress, the ers, and in helping to deal with points of strain in administration, and the Federal Reserve. the international financial fabric. But if those goals are to be actually achieved, Most other industrialized countries have, as a we also must clearly recognize, and collectively matter of priority, been deeply concerned with deal effectively with, points of strain and danger, restoring price stability and reducing fiscal defisome of them stemming from the very successes cits. Remarkable strides have been made toward of the past. those goals. However, their growth, at least until Economic history is replete with examples of now, has been heavily dependent upon rising countries that, in attempting to correct overvalu- trade and current account surpluses. Today, ation of their currencies, failed to take advantage there appears to be a prime opportunity for of their improved competitive positions. Too encouraging "home grown" expansion, larger often, they lapsed into a debilitating and self- imports, and better international balance. defeating cycle of external depreciation and in- For the longer run, I welcome the call by the ternal inflation, at the expense of an eroding loss President to consider what steps might be desirof confidence, higher interest rates, and impaired able to achieve and maintain greater exchange growth. rate stability internationally. No one should It would be foolish to presume that the United think that task is a simple one. It cannot in any States is somehow immune from that threat—we way substitute for disciplined and complemenhad too much adverse experience in the 1970s to tary domestic policies among the leading nations. indulge in wishful thinking in that respect. In- Indeed, meaningful progress would imply even stead, in our monetary and fiscal policies, we greater demands on those policies and on interneed to be realistic about the danger and be fully national cooperation. But surely we have had sensitive to the need to maintain confidence in enough experience, here and elsewhere, with the our currency. distorting effects of extreme exchange-rate vola- Fortunately, the sharp decline in energy prices tility to make that effort to reexamine the internanow under way should, for months ahead, help tional system worthwhile. In a fundamental sense, that is a corollary of the simple observable assure satisfactory price performance overall, fact that the economic fortunes of all countries— making the job of maintaining progress toward including the United States—are inextricably instability much easier. But those lower prices are terlocked. no unmitigated blessing. They create new uncertainties and stresses for some regions of the We have come too far, and the stakes are too economy, for some financial sectors, and partic- high, to fail to rise to the evident new challenges. ularly for some important developing countries We have to recognize that depreciation of our and trading partners. Those stresses need to be currency does not in itself provide a fundamental contained and dealt with in a constructive way, solution, and is, in fact, a two-edged sword. and we need to guard against conditions that The budgetary effort must be sustained. might lead to a repetition of past energy short- If we expect to benefit from the break in ages. energy prices, we must collectively respond to The sense of greater confidence about our the points of strain. fiscal prospects still needs to be converted into We need to be patient when patience is re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 241 quired. The trade and budgetary and financial be a high premium on careful judgment. But problems will be with us for some time; at the through it all the basic objective does not change. same time, we need to be insistent in carrying We are convinced that sustained growth in the through the measures to deal with them con- United States—and much more—is dependent structively. upon maintaining progress toward price stability In much of this, I recognize that the Federal over time. And given our weight in the world, Reserve and monetary policy have a vital part to that same stability must be one of the foundation play. Given the crosscurrents in the economy stones of a prosperous, integrated global econoand sometimes conflicting signals among the my. • guideposts to policy in today's setting, there will Chairman Volcker presented identical testimony before the Senate Committee on Banking, Housing, and Urban Affairs, February 20, 1986. Statement by Paul A. Volcker, Chairman, Board strained, and interest rates, particularly in the of Governors of the Federal Reserve System, long-term area, have moved significantly lower. before the Committee on the Budget, U.S. The sharp recent declines in the oil price, given House of Representatives, February 26, 1986. the weight of energy in the economy, appear to assure favorable price performance in the I appreciate the opportunity to appear before this months immediately ahead. committee today. As you know, the Federal In this context, the Federal Open Market Reserve submitted its semiannual monetary poli- Committee at its meeting earlier this month reafcy report to the Congress last week. That report, firmed the tentative ranges that it had established which we have distributed to you, describes in last July for the broader monetary and credit detail our plans for monetary policy, including aggregates, M2 and M3. For Ml, the target range the Federal Open Market Committee's ranges for was widened to take account of the greater growth of money and credit. A copy of my uncertainty surrounding the behavior of this agstatement to the banking committees has also gregate, but the midpoint of the range was the been provided. My prepared remarks this morn- same as that tentatively agreed on six months ing will be brief and confined to more general earlier. considerations of domestic and international eco- In deciding upon these ranges, the Committee nomic policies within the context of recent and understood that particular uncertainty had surprospective developments. rounded the recent behavior of Ml and its veloci- The past year was one of further progress in ty. Consequently, evaluation of the significance the nation's economy. Although the growth of of changes in Ml will continue to be made in light domestic production slowed last year, the rise in of the trend in the other monetary aggregates. output was still sufficient to generate 3 million Moreover, evaluation of the outlook for business new payroll jobs and to reduce the unemploy- activity and prices, as well as conditions in ment rate significantly further. Moreover, domestic and international markets, will, as in growth was sustained consistent with maintain- the past, contribute to the operational judgments ing the progress that had been achieved on the of the Committee in determining the proper inflation front. degree of pressure on reserve positions As we move into 1986, the prospects for Consistent with this approach and the ranges extending the economic advances of the past set out, members of the Federal Reserve Board year appear, by and large, to be good. The latest and the Reserve Bank Presidents expect that the reports on employment, industrial production, economy will grow somewhat faster this year and housing activity show further increases than in 1985. Views on the outlook for inflation around the turn of the year. Confidence appears were more diverse; some expected additional well maintained, cost increases have been re- slowing, while others anticipated a moderate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
242 Federal Reserve Bulletin • April 1986 pickup from the 1985 inflation rate. The "central of efficiency and incentives tends to be better tendency" of the projections of real GNP and served by approaching deficit-cutting from the inflation for 1986 generally is a little lower than spending side rather than from the tax side. Only the administration's forecasts of about 4 percent if sufficient spending cuts cannot, in fact, be each, and is closer to the growth projections of enacted to place the deficit on a solidly declining the Congressional Budget Office (CBO). Howev- trend does the question of substantial action on er, the differences are not large. Indeed, the full the revenue side become relevant. range of expectations expressed by Board Mem- The potential benefits of smaller budget defibers and Bank Presidents does encompass both cits already can be seen in improved market the administration's and the CBO's figures. sentiment. As you know, both intermediate- and Although prospects for economic performance long-term interest rates have declined sharply in in 1986 appear favorable at this time, there are recent months, interest rates generally are at the inevitably some important uncertainties and lowest level since 1979, and the stock market has points of strain. The two major, and interrelated, continued to set new records. Although other imbalances that I have stressed so often in the factors have played a role in these developpast—the enormous trade and fiscal deficits— ments—for example, lower oil prices—the prosremain. But there is a potentially crucial differ- pects for budgetary restraint clearly have been a ence from the situation a year ago. The actions critical factor. The effects of lower interest rates by the Congress and the administration on the are beginning to be felt in housing activity, where budget carry the clear promise of progress to- sales of single-family homes are at a six-year high ward better budgetary balance in the years and housing starts are up most recently. Lower ahead. At the same time, a substantial adjust- rates and higher stock prices should assist other ment in exchange rates has occurred during the private investment decisions as well. past 12 months, improving the competitive posi- In the short run, as they become effective, tion of American firms and contributing over deficit-reduction actions, taking account of their time to a reduction in our trade deficit. direct impact, restrain the growth of income and At the same time, we have to understand that potential economic activity. Those direct effects both developments—substantially reduced bud- may, of course, be balanced by other economic get and trade deficits—will require hard and developments, including in part the beneficial persistent efforts over a considerable period, effects of lower interest rates, stimulated by the measured in years. In the meantime, financing budget reductions themselves. The precise balboth deficits will require a large continuing net ance of these forces is hard to foresee—at presinflow of funds from abroad. That requirement is ent, for instance, the decline in oil prices is a major reason we must keep in mind the need to releasing purchasing power to American conmaintain confidence in our currency and the sumers. potentially inflationary effects of rapid deprecia- The balance of these forces, currently and tion. A clear appreciation in the marketplace of prospectively, is, of course, an important eleimproved prospects for the deficit is a major ment in the judgments that we must make on element of protection against those risks, and monetary policy, but I know of no way to that is why I welcome the efforts made by the express realistically a kind of mathematical administration, the Congress, and this committee "tradeoff" in light of all the crosscurrents in the to place the budget deficit on a declining trend. economy. I recognize that reducing the deficit requires Trade and budget deficits are not the only difficult decisions. From my particular position, I imbalances that pose uncertainties for the ecowill refrain from responding to your invitation as nomic outlook. Pervasive pressures remain in to where specific budgetary cuts should be made; much of the agricultural sector, and key manuthat process involves intensely political choices facturing industries continue to face strong comentirely in the domain of the Congress and the petition from foreign producers. In financial maradministration. As I have indicated many times kets, a number of institutions have had to cope before, from a purely economic perspective, the with loan problems associated with sectoral ecoperformance of the economy over time in terms nomic pressures, the large debt burdens of some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 243 borrowers at home or abroad, and the disinfla- spending cuts could have disruptive effects in tionary process. Beyond implications for mone- financial markets. Given our particular responsitary policy, this situation poses challenges for bilities, I must, in that connection, note that the banking supervisors and other public policies; ability of the Federal Reserve and other bank the recently enacted farm bill, for instance, will regulatory agencies to add resources to our suprovide substantial elements of support for the pervisory efforts will inevitably be impacted. agricultural sector. As I noted earlier, the decline While voluntarily complying with the spirit of in the foreign exchange value of the dollar will Gramm-Rudman-Hollings legislation, we intend help bring about an environment in which U.S. to limit the impact of cuts in that high priority producers will be able to compete more effec- area as much as feasible. Our sister agencies, in tively in world markets. And the efforts of many some instances, may have less flexibility. depository institutions to bolster capital and re- This strikes me as one example of needing to serves should help these institutions to cope with make the hard budget choices as a matter of financial strain. considered national priority rather than falling It would be foolish, of course, to think that we back on inevitably arbitrary "across-the-board" have prepared in advance for every eventuality. sequestering procedures, however important the Indeed, a number of questions remain, including latter may be in encouraging discipline. the strength of economic expansion abroad, the Let me conclude my remarks by noting that we impact of a declining dollar on U.S. inflation, and at the Federal Reserve share common goals with the effect of lower oil prices on the financial the Congress and the administration—maintainhealth of domestic energy producers and of a ing sustainable growth of economic activity in a number of oil-exporting developing countries. context of greater price stability. Substantial But adverse shocks in these areas, or others, progress has been made over the past year. We should be manageable if there is cooperative also have to recognize that we still have some effort among all involved parties here and distance to travel, and that indeed the effort is abroad. never ending. But we have come too far, and the You asked me to comment on any areas of stakes are too high, to fail t© meet the challenge federal spending in which across-the-board now. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
244 Announcements WA YNE D. ANGELL AND Dr. Johnson is currently an Assistant Secretary for Economic Policy at the Department of the Treasury, MANUEL H. JOHNSON: APPOINTMENT AS 1982, and previously served as Deputy Assistant Sec- MEMBERS OF THE BOARD OF GOVERNORS retary for Economic Policy, 1981-82. Dr. Johnson was an Associate Professor of Economics at George Ma- President Reagan on October 10, 1985, an- son University in Fairfax, Virginia, 1980-81, and an nounced his intention to appoint Wayne D. An- Assistant Professor of Economics, 1977-80. He was gell and Manuel H. Johnson as members of the an instructor and Research Associate at Florida State University in the Department of Economics, 1973-76. Board of Governors of the Federal Reserve Sys- Dr. Johnson graduated from Troy State University, tem. Messrs. Angell and Johnson were subse- B.S. 1973; Florida State University, M.S. 1974, and quently confirmed by the Senate on February 5, Ph.D. 1977. He was born February 10, 1949, in Troy, 1986. The oaths of office were administered by Alabama, is married, and has two children. Dr. John- Chairman Volcker on February 7 at a ceremony in son resides in Fairfax, Virginia. the Board Room. The texts of the White House announcements follow: MEETING OF CONSUMER ADVISORY THE WHITE HOUSE COUNCIL Office of the Press Secretary The Federal Reserve Board announced that its Consumer Advisory Council met on March 20 The President announced on October 10, 1985, his and 21, in sessions open to the public. The intention to nominate Wayne D. Angell of Kansas, council's function is to advise the Board on the District 10, to be a Member of the Board of Governors exercise of the Board's responsibilities under the of the Federal Reserve System for the unexpired term Consumer Credit Protection Act and on other of fourteen years from February 1, 1980, vice Lyle matters on which the Board seeks its advice. Elden Gramley resigned. Dr. Angell is currently Director, Federal Reserve Bank of Kansas City. He was first elected to the Bank in 1979. He has been a professor of Economics at APPOINTMENT OF NEW MEMBERS TO THE Ottawa University, Ottawa, Kansas, since 1956, and THRIFT INSTITUTIONS ADVISORY COUNCIL Dean of the College, 1969-72. Dr. Angell has served on the Advisory Committee to the staff of the Federal Reserve Board of Governors, 1972-73. The Federal Reserve Board announced on Feb- He graduated from Ottawa University, B.A., 1952; ruary 6, 1986, the appointment of five new mem- University of Kansas, M.A., 1953 and Ph.D., 1957. He bers of its Thrift Institutions Advisory Council was born June 28, 1930, in Liberal, Kansas, is married and designated Richard H. Deihl, Chairman of and has three children. Dr. Angell resides in Ottawa, Kansas. the Board and Chief Executive Officer, Home Savings of America, Los Angeles, California, as President of the council for 1986. At the same THE WHITE HOUSE time, Michael R. Wise, Chairman and Chief Office of the Press Secretary Executive Officer, Silverado Banking, Denver, Colorado, was designated Vice President of the The President announced on October 10, 1985, his council for 1986. intention to nominate Manuel H. Johnson of Virginia, The Council is an advisory group made up of District 5, to be a Member of the Board of Governors twelve representatives from thrift institutions. of the Federal Reserve System for a term of fourteen The panel was established by the Board in 1980 years from February 1, 1986, vice J. Charles Partee's term expiring. and includes savings and loan, savings bank, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 245 credit union representatives. The council meets Under the temporary program banks may borat least four times each year with the Board of row at the discount window to fund half of their Governors to discuss developments relating to loan growth in excess of 2 percent from a base thrift institutions, the housing industry, mortgage level, up to a maximum equal to 5 percent of finance, and certain regulatory issues. deposits. The new members appointed to the council are The Board made the following two modificathe following: tions in the temporary program to enhance its John C. Dicus, President, Capitol Federal Sav- usefulness to potential borrowers: (1) it gave ings and Loan Association, Topeka, Kansas; banks the option of borrowing at the basic dis- Jamie J. Jackson, President, Commonwealth Fi- count rate—currently IV2 percent—or at a fixed nancial Group, Houston, Texas; Donald F. Mc- rate V2 percentage point over the basic rate; (2) it Cormick, Chairman of the Board, Howard Sav- gave banks additional flexibility in determining ings Bank, Livingston, New Jersey; Herschel the base from which loan growth will be mea- Rosenthal, President, Flagler Federal Savings sured. and Loan Association, Miami, Florida; and Gary L. Sirmon, President, First Federal Savings and CHANGES IN BOARD STAFF Loan Association, Walla Walla, Washington. Reappointed to the council, in addition to The Board of Governors has announced tht Messrs. Deihl and Wise, are the following: following changes in the official staff: Elliott G. Carr, President and Chief Executive David B. Humphrey, Assistant Director, Divi- Officer, the Cape Cod Five Cents Savings Bank, sion of Research and Statistics, resigned, effec- Orleans, Massachusetts; M. Todd Cooke, Vice tive February 28, 1986. Chairman, Meritor Financial Group, Philadel- Anthony F. Cole, Special Assistant to the phia, Pennsylvania; Harold W. Greenwood, Jr., Board, resigned, effective February 28, 1986. Chairman, President, and Chief Executive Officer, Midwest Federal Savings and Loan Association, Minneapolis, Minnesota; John A. Hardin, SYSTEM MEMBERSHIP-. Chairman and President, First Federal Savings ADMISSION OF STATE BANKS Bank, Rock Hill, South Carolina; and Frances Lesnieski, President, Michigan State University The following banks were admitted to member- Federal Credit Union, East Lansing, Michigan. ship in the Federal Reserve System during the period February 1 through February 28, 1986: RENEWAL OF TEMPORARY SIMPLIFIED Alabama SEASONAL CREDIT PROGRAM Fayette First Bank of Fayette Colorado The Federal Reserve announced on February 18, Arvada Arvada First Industrial Bank 1986, renewal in a slightly modified form of the Littleton Littleton First Industrial Bank temporary simplified seasonal credit program for Longmont . Longmont First Industrial Bank 1986. This program, which was also in place last Westminister .. United Bank of Westminster year, is designed to make funds available at the Georgia discount window to agricultural banks experi- Atlanta Georgia Bankers Bank encing especially strong loan demands. Indiana While liquidity at farm banks appears general- Hartford City First National Bank of ly ample, the temporary program will comple- Hartford City ment the long-standing regular seasonal credit Ohio program, which had been eased last year, to Beachwood Commerce Exchange Bank further assure that small and medium-sized agri- Texas cultural banks will not face liquidity constraints Friendswood First American Bank & in accommodating the needs of their farm bor- Trust of Friendswood rowers over the forthcoming planting and pro- Piano Commerce Bank of Piano duction cycle. San Antonio First American Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
246 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON DECEMBER 16-17, 1985 1985 automobiles—and the November increase only partially offset that decline. For the two- Domestic Policy Directive month period sales were 1 percent below the average for the third quarter. Sales of domestic The information reviewed at this meeting sug- automobiles remained relatively sluggish in Nogested that economic activity was expanding at a vember, and manufacturers reintroduced some relatively modest pace. The underlying trend in limited financing incentives. In early December inflation appeared to have changed little, as domestic auto sales picked up to an annual rate broad measures of prices and wages were rising of nearly IVi million units, about 1 million units at rates close to those recorded earlier in the above the sales pace in October and November year. but still below recent and planned production Total nonfarm payroll employment increased levels. further in November, though less than in Octo- In November, total private housing starts fell ber, and the civilian unemployment rate edged substantially, more than reversing the appreciadown to 7.0 percent. Over the two-month period ble gain in the previous month. An especially employment gains averaged 270,000, about equal sharp drop in starts of single-family homes acto the average monthly increase in the third counted for most of the decline. Over the twoquarter. Most of the growth in employment con- month period total starts were at an average tinued to be in service industries and at finance annual rate of 1.65 million units, about the same and trade establishments. But manufacturing em- as in the third quarter. Newly issued permits for ployment, after contracting during the first three residential construction averaged somewhat bequarters of the year, rose substantially in Octo- low the rate recorded for the third quarter. Sales ber and moved up further in November. More- of existing homes picked up in October (the over, the length of the factory workweek re- latest month for which data were available) from mained at a relatively high level. their third-quarter pace, but sales of new homes The index of industrial production rose an dropped. Interest rates at savings and loan assoestimated 0.4 percent in November, reversing ciations on new commitments for fixed-rate conthe drop in October. Output of defense and space ventional home mortgage loans had stabilized in equipment continued at a brisk pace over the the 12j/8 to \2LA percent range from August two-month period. For most other broad catego- through most of October, but declined consideraries of products and equipment, gains in Novem- bly in recent weeks: the average contract rate fell ber roughly retraced the declines posted in Octo- from about 12 percent in early November to a bit ber. above 11 LA percent by mid-December. Total retail sales rose in November and gains Incoming information generally suggested were recorded at most major types of stores, sluggishness in business capital spending. In with particularly large increases registered at October shipments of nondefense capital goods general merchandise outlets. But sales had picked up after changing little in the third quardropped sharply in October—attributable largely ter, but new orders for such goods fell appreciato a reduction of more than 17 percent in sales at bly. Outlays for nonresidential construction have automotive outlets that was associated with the been essentially flat over recent months. Moreending of financing and price concessions on over, recent surveys of business capital spending Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
247 plans suggested little real growth in that sector praisals of the strength of the business expanfor next year. sion, the performance of the dollar on foreign Recent monthly data on prices have shown exchange markets, progress against inflation, higher rates of increase than those recorded in and conditions in domestic and international the spring and summer, reflecting what was credit markets. It was understood that policy expected to be a temporary spurt in prices of might be implemented with somewhat more flexfood and energy-related items. The producer ibility than usual, given the sensitivity of ecoprice index for finished goods rose 0.9 and 0.8 nomic and financial conditions and exchange percent in October and November respectively, market developments. The intermeeting range after falling in three of the preceding four for the federal funds rate was retained at 6 to 10 months. Thus far in 1985, the index had in- percent. creased at an annual rate of about Wi percent, After declining slightly in October, Ml expandslightly below the rate in 1984. The consumer ed at an annual rate of about 13 percent in price index rose 0.3 percent in October, slightly November. Growth in M2 and M3 continued above the 0.2 percent monthly increase recorded quite moderate in November, at annual rates of from May through September. Over the first 10 about 6V2 and 5 percent respectively. Through months of the year, consumer prices increased at November, Ml expanded at a pace well above an annual rate of about 3V4 percent, compared the range set by the Committee in July of 3 to 8 with a rise of 4 percent in 1984. The rate of percent at an annual rate over the period from increase in the index of average hourly earnings the second quarter to the fourth quarter of the through November of this year remained close to year; M2 grew at a rate a bit below the upper the 3 percent pace posted over the course of limit of its range of 6 to 9 percent for the year and 1984. M3 expanded at a rate near the midpoint of its The trade-weighted value of the dollar against range of 6 to 9Vi percent for 1985. Expansion in major foreign currencies had declined about IVi total domestic nonfinancial debt apparently was percent on balance since the Committee's meet- quite rapid in November, and growth in that ing on November 4-5, though in recent weeks aggregate remained somewhat above the upper the dollar's value had tended to stabilize. Re- end of its 9 to 12 percent monitoring range for the vised data on merchandise trade for the third year. quarter confirmed that the deficit had widened Given expansion in the broader monetary agfurther, to an estimated annual rate of $133 gregates at a pace close to the Committee's billion, as non-oil imports rose and exports fell expectations for the September-to-December pesomewhat. riod and within their longer-run ranges as well, At its meeting on November 4-5, 1985, the and with account taken of economic and finan- Committee had adopted a directive that called cial developments, open market operations durfor maintaining generally the existing degree of ing the intermeeting interval were directed topressure on reserve positions. That action was ward maintaining approximately unchanged expected to be consistent with growth of both conditions of reserve availability. Reserve man- M2 and M3 at an annual rate of about 6 percent agement was complicated by the concentrated for the period from September to December. settlement of large Treasury security issues de- Over the same period, Ml also was expected to layed by debt ceiling problems and by a computexpand at an annual rate of around 6 percent, but er breakdown at a major bank that led to an in light of its very rapid growth in the third overnight loan from the Federal Reserve disquarter, the members indicated that slower count window in excess of $22 billion—an ungrowth in that aggregate would be acceptable. precedented amount. Excluding that borrowing, The members agreed that somewhat greater re- seasonal plus adjustment credit from the disserve restraint might, and somewhat lesser re- count window averaged around $725 million durstraint would, be acceptable depending on the ing the two complete reserve maintenance peribehavior of the monetary aggregates over the ods after the Committee's meeting in early intermeeting period and taking account of ap- November. During that period, excess reserves Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
248 Federal Reserve Bulletin • April 1986 were unusually large, affected for a time by a to sustain overall economic growth. These facmaldistribution of reserves in the wake of the $22 tors included the appreciable fall in longer-term billion borrowing. Thus far in the current mainte- interest rates, including mortgage rates, and the nance period, borrowing was running about $175 rise in stock market prices over the course of million. recent weeks, the decline in the foreign exchange The federal funds rate averaged around 8 per- value of the dollar, and the substantial growth in cent during the intermeeting period, but exhibit- money. On the negative side, members referred ed considerable day-to-day and week-to-week to the rapid rise in debt burdens, the exposure of volatility associated with the extraordinary level financial institutions to domestic and internationof borrowing noted above and pressures related al debt problems, and the difficulties in some to the need to finance a very large volume of sectors of the economy. Also mentioned was the Treasury issues. Rates on Treasury bills general- possibility that as legislation to reduce future ly fell about 20 to 35 basis points over the federal deficits became effective it would tend to intermeeting interval, while other short-term exert a dampening influence on economic activirates typically moved down about 10 to 15 basis ty, although such legislation was urgently needed points. Long-term interest rates dropped appre- to foster the longer-run health of financial marciably further over the period, falling about V2 to kets and the economy. 3A percentage point. Turning to particular sectors of the economy, In the Committee's discussion of the economic the members again underscored the variation in situation and outlook, individual members ex- conditions among industries and their uneven pressed somewhat differing views regarding contribution to current and prospective economprospects for economic growth in 1986. The staff ic activity. Moderate growth was considered to projections presented at this meeting had sug- be a reasonable expectation for many sectors of gested that growth in real GNP would continue at the economy. At the same time, the members a relatively modest pace in 1986, with the aver- expressed concern about the persisting problems age unemployment rate and the rate of increase and financial strains in some industries such as in prices during the coming year expected to agriculture and a number of manufacturing and change little from the rates in 1985. While the extractive businesses, notably those that comstaff projection was seen as a plausible assess- peted actively with foreign producers. In agriculment of the outlook, several members empha- ture, prices remained generally depressed desized that any current forecast was subject to a spite recent increases in some crop and great deal of uncertainty. They referred, for especially in livestock prices, and many producexample, to the difficulty of evaluating the poten- ers and lenders continued under severe financial tial impact of deficit reduction and tax reform pressure. Reference was also made to the loss of legislation, and to the uncertainties surrounding momentum in investment spending, associated in the outlook for the U.S. trade balance. Some part with the aging of the business expansion but members concluded that the economy might also reflecting uncertainties about still pending prove to be somewhat stronger than the staff was tax reform legislation. Consumer spending was projecting, but several stressed the possibility of thought likely to expand further, but its growth appreciably slower growth. In this connection, would probably be inhibited by the buildup in one member cautioned that a sluggish expansion consumer debt that had already taken place. In would be vulnerable to an actual downturn in the the housing market, starts had been lower than event of adverse developments in particular sec- many expected, given the reductions in mortgage tors of the economy. interest rates. In the course of the discussion, some members The reduced value of the dollar could be commented that a sector-by-sector review of the expected to foster some improvement in the economy tended to suggest a relatively weak trade balance over time, with favorable implicaexpansion in 1986, and one clearly subject to tions for domestic economic activity, though downside risks, but several members also cited a with the potential for adding to upward price number of broad factors that they felt would tend pressures. Export demand might also be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of the FOMC 249 enhanced by somewhat faster growth in some approximately unchanged conditions of reserve major European economies. Some members availability. A majority, however, indicated a suggested, however, that the prospective preference for moving toward implementing improvement in the trade balance might be re- some slight easing of reserve conditions. Several strained in the event of foreign retaliation to any also commented that decisions about the precise new protectionist measures adopted by the Unit- degree of reserve pressure should depend in part ed States. The dollar had tended to stabilize in on whether the discount rate was reduced, and if recent weeks, but members remained concerned so by how much. that a renewed decline, particularly if it should Members who leaned toward maintaining prebe precipitate, would have disruptive repercus- vailing reserve conditions expressed particular sions. concern about the rate of growth in money and With regard to the outlook for inflation, the credit and the inflationary implications of further members saw little reason at this time to expect rapid growth. They agreed that the outlook for significant changes from the rates of increase economic expansion remained uncertain, but in experienced in 1985. The reduced value of the their view business activity was likely to be dollar in foreign exchange markets would tend to satisfactory, given current reserve conditions, exert some upward pressure on prices, but con- especially in view of recent developments in tinued softness in world commodity prices, espe- financial markets, the lower dollar, and the buildcially oil, could have offsetting effects. Inflation- up in money and liquidity. Other members, while ary sentiment appeared to have diminished, as recognizing the risks of unduly rapid monetary evidenced by the recent performance of the growth, were more concerned that the rate of stock and bond markets, and with continuing economic expansion might remain inadequate. In competition from abroad, price competition that context, some thought that the recent decould be expected to remain intense in many clines in longer-term interest rates, which would markets. Moreover, the general pattern of labor help sustain the economy, were premised to an settlements so far did not suggest any substantial extent on expectations of an easier monetary acceleration of cost pressures during the year policy. One member commented that real interahead. est rates were still relatively high in any event At its meeting in July the Committee had and were exerting a restraining influence on agreed on tentative growth ranges of 4 to 7 economic activity. It was also noted that reduced percent for Ml and 6 to 9 percent for both M2 and interest rates would lessen, though by no means M3 for the period from the fourth quarter of 1985 eliminate, the financial strains in some sectors of to the fourth quarter of 1986. The associated the economy and the external debt problems of range for growth in total domestic nonfinancial several developing countries. debt was set at 8 to 11 percent for 1986. At this The members agreed that the extent of any meeting the Committee reviewed background easing was constrained by a number of considertechnical factors bearing on the ranges for 1986, ations, including the need to avoid unduly rapid including the implications of the final phase of expansion in money and credit and the potential deposit deregulation early in the year. It was vulnerability of the dollar to a relative decline in anticipated that at its next meeting the Commit- U.S. interest rates. It was also suggested that a tee would reassess the tentative ranges and es- sharp move toward ease under present circumtablish definite ranges as required by the Full stances might well foster a resurgence of infla- Employment and Balanced Growth Act of 1978 tionary expectations, with adverse repercussions (the Humphrey-Hawkins Act). over time on financial markets and the sustaina- In the Committee's discussion of policy imple- bility of the economic expansion. mentation for the period ahead, the members According to an analysis prepared for this differed to some extent in their views concerning meeting, the degree of pressures on reserve an appropriate degree of pressure on reserve positions being considered by the members was positions. Some favored directing open market likely to be associated with some slowing in Ml operations, at least initially, toward maintaining growth during the early months of 1986, while Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
250 Federal Reserve Bulletin • April 1986 the broader aggregates might continue to expand such an approach to policy implementation to be at moderate rates. While the final phase of de- consistent with growth of M2 and M3 at annual posit deregulation was expected to have little net rates of 6 to 8 percent for the four-month period impact on monetary growth during the first quar- from November to March. Over the same period ter, the members recognized that the relationship they expected the expansion of Ml to slow to an between money and GNP remained subject to a annual rate of 7 to 9 percent, though the outlook great deal of uncertainty. They noted that the for Ml growth continued to be subject to unusual demand for Ml had deviated considerably from uncertainty. Somewhat greater reserve restraint historical experience and that it was very difficult might, and somewhat lesser restraint would, be to predict when the unusual weakness in Ml acceptable over the intermeeting period dependvelocity, which had been evident for several ing on the growth of the monetary aggregates, quarters, would be reversed and a more normal the strength of the business expansion, the perpattern would emerge. In the circumstances, formance of the dollar on foreign exchange marsome sentiment was expressed for further reduc- kets, progress against inflation, and conditions in ing the emphasis on Ml, but a majority of the domestic and international credit markets. The members agreed that it should be retained as one members agreed that the intermeeting range for guide among others for the conduct of monetary the federal funds rate, which provides a mechapolicy. nism for initiating consultation of the Committee In keeping with past practice, the members when its boundaries are persistently exceeded, considered the question of possible intermeeting should be left unchanged at 6 to 10 percent. adjustments in the degree of pressure on reserve At the conclusion of the meeting, the following positions. While no member wanted to rule out domestic policy directive was issued to the Fedpossible adjustments in either direction, most eral Reserve Bank of New York: believed that policy implementation should be The information reviewed at this meeting suggests especially alert to the potential need for some that economic activity is expanding at a relatively further easing in light of the relatively sluggish modest pace in the current quarter. Total nonfarm performance of the economy and the generally payroll employment increased further in November, though less than in October, and the civilian unemfavorable outlook for prices and wages. Policy ployment rate edged down to 7.0 percent. Retail sales implementation also needed to take account of and industrial production picked up in November after the behavior of the monetary aggregates, condi- declining in October. After strengthening in October, tions in domestic and international financial mar- housing starts fell appreciably in November. Incoming kets, and developments in foreign exchange mar- information generally suggests relatively sluggish business capital spending. Revised merchandise trade data kets, as well as the impact of a reduction in the for the third quarter confirm that the deficit widened discount rate, should one take place. It was also further, as non-oil imports continued to increase and suggested that the Committee's expectations exports fell somewhat. Broad measures of prices and with regard to the short-run growth of the aggre- wages appear to be rising at rates close to those gates be stated with less precision than in the recorded earlier in the year. After declining in October, Ml grew substantially in past and that the behavior of Ml, in particular, November while growth in M2 and M3 continued quite be evaluated in the context of other economic moderate. Expansion in total domestic nonfinancial and financial developments, including the growth debt has remained rapid. Through November, Ml of the broader aggregates. In one view, however, expanded at a rate well above the long-run range set by any substantial deviation of Ml growth from the Committee, M2 grew at a rate a bit below the upper end of its range for the year, and M3 expanded at a rate expectations should be resisted—in either direcnear the mid-point of its range for 1985. Treasury bill tion—by an appropriate adjustment in the degree rates have fallen somewhat while other short-term of reserve pressure. market interest rates have changed little on balance since the November meeting of the Committee; long- At the conclusion of the Committee's discusterm rates have moved appreciably lower over the sion, most of the members indicated that they period. The trade-weighted value of the dollar against favored or could accept a directive that called for major foreign currencies has declined on balance since some limited decrease in the degree of pressure the Committee's meeting in early November, though on reserve positions. The members expected the dollar has tended to stabilize more recently. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of the FOMC 251 The Federal Open Market Committee seeks to fos- be taken of experience with institutional and depositer monetary and financial conditions that will help to tory behavior in response to the completion of deposit reduce inflation further, promote growth in output on a rate deregulation early in the year. sustainable basis, and contribute to an improved pat- In the implementation of policy for the immediate tern of international transactions. In furtherance of future, the Committee seeks to decrease somewhat the these objectives the Committee at the July meeting existing degree of pressure on reserve positions. This reaffirmed ranges for the year of 6 to 9 percent for M2 action is expected to be consistent with growth in M2 and 6 to 9LA percent for M3. The associated range for and M3 over the period from November to March at total domestic nonfinancial debt was reaffirmed at 9 to annual rates of about 6 to 8 percent; while the behavior 12 percent. With respect to Ml, the base was moved of Ml continues to be subject to unusual uncertainty, forward to the second quarter of 1985 and a range was growth at an annual rate of 7 to 9 percent over the established at an annual growth rate of 3 to 8 percent. period is anticipated. Somewhat greater reserve re- The range takes account of expectations of a return of straint might, and somewhat lesser reserve restraint velocity growth toward more usual patterns, following would, be acceptable depending on behavior of the the sharp decline in velocity during the first half of the aggregates, the strength of the business expansion, year, while also recognizing a higher degree of uncer- developments in foreign exchange markets, progress tainty regarding that behavior. The appropriateness of against inflation, and conditions in domestic and interthe new range will continue to be reexamined in the national credit markets. The Chairman may call for light of evidence with respect to economic and finan- Committee consultation if it appears to the Manager cial developments including developments in foreign for Domestic Operations that reserve conditions durexchange markets. More generally, the Committee ing the period before the next meeting are likely to be agreed that growth in the aggregates may be in the associated with a federal funds rate persistently outupper parts of their ranges, depending on continuing side a range of 6 to 10 percent. developments with respect to velocity and provided that inflationary pressures remain subdued. Votes for this action: Messrs. Volcker, Corrigan, For 1986 the Committee agreed on tentative ranges Forrestal, Guffey, Keehn, Martin, Partee, Rice, of monetary growth, measured from the fourth quarter and Ms. Seger. Vote against this action: Mr. Black. of 1985 to the fourth quarter of 1986, of 4 to 7 percent Absent and not voting: Messrs. Balles and Wallich. for Ml, 6 to 9 percent for M2, and 6 to 9 percent for (Mr. Guffey voted as alternate for Mr. Balles.) M3. The associated range for growth in total domestic nonfinancial debt was provisionally set at 8 to 11 percent for 1986. With respect to Ml particularly, the Mr. Black dissented because he was con- Committee recognized that uncertainties surrounding cerned about the rapid growth of Ml and he did recent behavior of velocity would require careful not think a decrease in the degree of pressure on reappraisal of the target range at the beginning of 1986. Moreover, in establishing ranges for next year, the reserve positions was desirable under present Committee also recognized that account would need to circumstances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
253 Legal Developments AMENDMENT TO RULES REGARDING Orders Issued Under Section 3 of the Bank DELEGATION OF AUTHORITY Holding Company Act The Board of Governors is amending its Rules Regard- Fidelcor, Inc. ing Delegation of Authority to authorize the Director Philadelphia, Pennsylvania of the Division of Banking Supervision and Regulation, in consultation with the General Counsel, to Order Approving Merger of Bank Holding permit foreign subsidiaries of U.S. banking organiza- Companies tions to hold shares of U.S. affiliates as part of an internal reorganization or transfer of funds. Fidelcor, Inc., Philadelphia, Pennsylvania, a bank Effective February 21, 1986, the Board amends its holding company within the meaning of the Bank Rules Regarding Delegation of Authority as follows: Holding Company Act (12 U.S.C. § 1841 et seq. ("Act")), has applied for the Board's approval under section 3(a)(5) of the Act (12 U.S.C. § 1842(a)(5)) to Part 265—Rules Regarding Delegation of acquire by merger IVB Financial Corporation, Phila- Authority delphia, Pennsylvania ("IVB"). As a result of the acquisition, Applicant would acquire indirectly IVB's 1. The authority citation for 12 C.F.R. Part 265 contin- subsidiary bank, Industrial Valley Bank and Trust ues to read as follows: Company, Philadelphia, Pennsylvania ("Industrial Valley Bank"). Authority: 12 U.S.C. § 248. Notice of the application, affording an opportunity for interested persons to submit comments, has been 2. Part 265 is amended by adding a new paragraph given in accordance with section 3(b) of the Act (50 265.2(c)(34) to read as follows: Federal Register 48,641 (1985)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the Act.1 Section 265.2—Specific Functions Delegated to Applicant is the fourth largest commercial banking Board Employees and to Federal Reserve organization in Pennsylvania, with total deposits of Banks approximately $4.7 billion, representing 5.5 percent of the total deposits in commercial banks in the state. (34) Under the provisions of Subpart A of part 211 of IVB is the eleventh largest commercial banking orgathis chapter (Regulation K) and after consultation with nization in Pennsylvania, with total deposits of apthe General Counsel, to permit a foreign subsidiary of proximately $1.7 billion, representing 2.0 percent of a bank holding company to invest in shares of a U.S. the total deposits in commercial banks in the state. affiliate of the bank holding company where the invest- Upon consummation of the proposed acquisition, Apment is made as part of an internal corporate reorgani- plicant would remain the fourth largest banking organization or an internal transfer of funds, subject to such zation in Pennsylvania, controlling 7.5 percent of the conditions and terms as the Director and the General total deposits in commercial banks in the state. Con- Counsel deem appropriate and consistent with the purposes of Regulation K. 1. The Board received a protest from the Eastern North Philadelphia Initiative Coalition and Philadelphia ACORN, both of Philadelphia, Pennsylvania, alleging that the subsidiary banks of Applicant and IVB were not fulfilling their responsibility under the Community Reinvestment Act to help meet the credit needs of their communities. ORDERS ISSUED UNDER BANK HOLDING The protestants withdrew their protests following several meetings with Applicant and Applicant's adoption of an undertaking designed COMPANY ACT, BANK SERVICE CORPORATION to help meet the credit needs of the communities served by Applicant ACT, AND FEDERAL RESERVE ACT and IVB. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
254 Federal Reserve Bulletin • April 1986 summation of the proposed transaction would not proposal is not likely to substantially lessen competihave a significant effect on the concentration of bank- tion in the relevant banking market.5 ing resources in Pennsylvania. The Board also has examined the effects of this Both Applicant and Bank operate in the Philadelphia proposal on probable future competition with respect banking market.2 Applicant is the second largest of 49 to the Allentown/Bethlehem banking market,6 the only commercial banking organizations operating in the market in which one, but not both, of the parties to the market, controlling deposits of $3.6 billion, represent- proposal competes. In view of the fact that the market ing 13.4 percent of the total deposits in commercial is not considered to be highly concentrated,7 the banking organizations therein. Bank is the eighth Board concludes that consummation of this proposal largest banking organization in the market, controlling would not have any significant adverse effects on deposits of $1.4 billion, representing 5.1 percent of the probable future competition in any relevant market. total deposits in commercial banking organizations in The financial and managerial resources of Applithe market. cant, its subsidiary banks, and Bank are generally The Philadelphia banking market is relatively un- satisfactory and consistent with approval, and considconcentrated, with a four-firm concentration ratio of erations relating to the convenience and needs of the 47.2 percent. Upon consummation of this proposal, community to be served also are consistent with Applicant would control 18.5 percent of the total approval, particularly in light of commitments made deposits in commercial banking organizations in the by Applicant in connection with this application. market, and the market would remain relatively un- Based on the foregoing and other facts of record, the concentrated, with a four-firm concentration ratio of Board has determined that the proposed acquisition is 52.3 percent. The Herfindahl-Hirschman Index in the public interest and that the application should ("HHI") is 815 and would increase by 137 points to be, and hereby is, approved. The transaction shall not 952 upon consummation of this proposal.3 be consummated before the thirtieth calendar day Although consummation of the proposal would elim- following the effective day of this Order, or later than inate some existing competition between Applicant three months after the effective date of this Order, and Bank in the Philadelphia banking market, numer- unless such period is extended for good cause by the ous other commercial banking organizations would Board or by the Federal Reserve Bank of Philadelphia remain as competitors after consummation of the pursuant to delegated authority. proposal. In addition, the presence of 172 thrift institu- By order of the Board of Governors, effective tions that control approximately 48.0 percent of the February 25, 1986. market's total deposits mitigates the anticompetitive effects of the transaction.4 Thrift institutions already Voting for this action: Vice Chairman Martin and Goverexert a considerable influence in the market as provid- nors Wallich, Rice, Seger, Angell, and Johnson. Absent and not voting: Chairman Volcker. ers of NOW accounts and consumer loans. In addition, many of the thrift institutions are engaged in the business of making commercial loans and are provid- WILLIAM W. WILES ing an alternative for such services in the Philadelphia [SEAL] Secretary of the Board banking market. Based upon the above considerations, the Board concludes that consummation of the 2. The Philadelphia banking market is approximated by the Philadelphia PMSA, which is comprised of Philadelphia, Bucks, Montgomery, Chester, and Delaware Counties in Pennsylvania; and Burlington, 5. If 50 percent of deposits held by thrift institutions in the Camden, and Gloucester Counties in New Jersey. Philadelphia banking market were included in the calculation of 3. Under the U.S. Department of Justice "Merger Guidelines," as market concentration, the share of total deposits held by the four revised in 1984, a market in which a post-merger HHI is below 1000 is largest organizations in the market would be 42.6 percent. Applicant unconcentrated. The Department of Justice has stated that it will not would control 8.9 percent of the market's deposits and Bank would challenge any merger producing an HHI below 1000, except in control 3.6 percent of the market's deposits. The HHI would increase extraordinary circumstances. by 64 points to 626. 4. The Board has previously indicated that thrift institutions have 6. The Allentown/Bethlehem banking market is approximated by become, or have the potential to become, major competitors of the Allentown/Bethlehem MSA, which is comprised of Carbon, commercial banks. National City Corporation, 70 FEDERAL RESERVE Northampton, and Lehigh Counties in Pennsylvania; and Warren BULLETIN 743 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE County in New Jersey. BULLETIN 225 (1984), General Bancshares Corporation, 69 FEDERAL 7. The three largest commercial banking organizations in the RESERVE BULLETIN 802 (1983); First Tennessee National Corpora- Allentown/Bethlehem market control only 55.2 percent of the deposits tion, 69 FEDERAL RESERVE BULLETIN 298 (1983). in commercial banks in the market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 255 Guaranty Development Company ling $14.7 million in deposits, representing 3.3 percent Livingston, Montana of total deposits in commercial banks in the market. Upon consummation of this proposal, Applicant Order Denying Acquisition of Bank would remain the third largest commercial banking organization in the Bozeman banking market, control- Guaranty Development Company, Livingston, Mon- ling 13.9 percent of total deposits in commercial banktana, a bank holding company within the meaning of ing organizations in the market. the Bank Holding Company Act ("Act") The Bozeman banking market is considered to be (12 U.S.C. §1841 et seq.), has applied for the Board's highly concentrated, with the four largest commercial approval under section 3(a)(3) of the Act (12 U.S.C. banking organizations controlling 80.1 percent of the § 1842(a)(3)) to acquire 99.5 percent of the voting total deposits in commercial banks in the market. The shares of First Citizens Bank of Bozeman, Bozeman, Herfindahl-Hirschman Index is 2132 and would in- Montana ("Bank"). crease by only 70 points to 2202 upon consummation Notice of the application, affording an opportunity of the proposal.3 for interested persons to submit comments, has been Although consummation of the proposal would elimgiven in accordance with section 3 of the Act. The time inate some existing competition between Applicant for filing comments has expired and the Board has and Bank in the Bozeman banking market, eight other considered the application and all comments received commercial banking organizations would remain as in light of the factors set forth in section 3(c) of the Act competitors after consummation of the proposal. In (12 U.S.C. § 1842(c)). addition, the presence of five thrift institutions that Applicant, a multibank holding company organized control approximately 14.7 percent of the market's under the laws of Montana, controls three banks, First total deposits mitigates the anticompetitive effects of Security Bank of Livingston, Livingston, Montana the transaction.4 These thrift institutions offer NOW ("Livingston Bank"); First Security Bank of Big Tim- accounts and make consumer and commercial loans. ber, Big Timber, Montana ("Big Timber Bank"); and Based upon the above considerations, the Board con- American Bank of Billings, Billings, Montana ("Amer- cludes that consummation of the proposed transaction ican Bank"), with deposits of $47.5 million, $10.4 is not likely to have a significant adverse effect on million, and $20.1 million respectively.1 Applicant existing competition in the Bozeman banking market.5 controls total deposits of $78.0 million and is the tenth The Board has indicated on previous occasions that largest commercial banking organization in the state, a bank holding company should serve as a source of controlling 1.3 percent of total deposits in commercial financial strength to its subsidiary banks, and that the banking organizations in the state. Applicant seeks to Board would closely examine the condition of an acquire Bank, the 72nd largest commercial banking applicant in each case with this consideration in mind. organization in the state, controlling deposits of $14.7 million, representing 0.3 percent of total deposits in commercial banking organizations in the state. Upon consummation of this proposal, Applicant would become the ninth largest commercial banking organiza- 3. Under the revised Department of Justice Merger Guidelines (49 Federal Register 26,823 (June 29, 1984)), any market in which the tion in the state, controlling 1.6 percent of total post-merger HHI is over 1800 is considered highly concentrated, and deposits in commercial banking organizations in the the Department is likely to challenge a merger that increases the HHI state. Consummation of this proposal would not result by more than 50 points unless other factors indicate that the merger will not substantially lessen competition. The Department of Justice in a significant increase in the concentration of bank- has informed the Board that a bank merger or acquisition generally ing resources in Montana. will not be challenged (in the absence of other factors indicating an anticompetitive effect) unless the post-merger HHI is at least 1800 and Applicant and Bank both compete in the Bozeman the merger increases the HHI by at least 200 points. banking market.2 Applicant is the third largest com- The Department has not advised the Board of any objection to this mercial banking organization in the Bozeman banking transaction. 4. All thrift institution data are as of June 30, 1984. The Board has market, controlling $47.5 million in deposits, reprepreviously determined that thrift institutions have become, or at least senting 10.6 percent of total deposits in commercial have the potential to become, major competitors of banks. National banks in the market. Bank is the eighth largest com- City Corporation, 70 FEDERAL RESERVE BULLETIN 743 (1984); NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225 (1984). mercial banking organization in the market, control- 5. If 50 percent of the deposits held by thrift institutions were included in the calculation of market concentration, the share of total deposits held by the four largest organizations in the market would be 73.7 percent. Applicant would control 9.8 percent of the market's deposits and Bank would control 3.0 percent of the market's deposits. 1. All banking data are as of June 30, 1985. Upon consummation of the proposed acquisition, the four-firm con- 2. The Bozeman banking market consists of Gallatin and Park centration ratio would increase to 76.7 percent and the HHI would Counties in Montana. increase by only 61 points to 1937. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
256 Federal Reserve Bulletin • April 1986 In connection with this proposal, Applicant would Notice of the application, affording an opportunity incur debt. Using projections based upon Applicant's for interested persons to submit comments, has been subsidiary banks' condition and performance in recent given in accordance with section 3(b) of the Act. The years and other facts of record, the Board concludes time for filing comments has expired, and the Board that Applicant may not have sufficient financial flexi- has considered the application and all comments rebility to be able to reduce its indebtedness in a ceived in light of the factors set forth in section 3(c) of satisfactory manner while maintaining adequate capi- the Act, 12 U.S.C. § 1842(c). tal levels at its subsidiary banks. In these circum- Applicant, with total assets of approximately $58.3 stances, it is the Board's view that Applicant's re- billion,1 is the 25th largest bank world-wide, and the sources should be devoted to its existing organization. 12th largest privately owned bank and the largest trust Accordingly, based on these and other facts of record, company in Japan. Applicant operates a branch in including Applicant's previous failure to meet its debt- New York, New York, and an agency in Los Angeles, servicing projections, the Board concludes that con- California, which have total assets of $3.6 billion and siderations relating to Applicant's financial resources $1.9 billion, respectively.2 Applicant has selected New and future prospects are adverse and weigh against York as its home state under the Board's Regulation approval of this application. K, 12 C.F.R. § 211.22(b). Applicant has proposed no new services for Bank Bank will serve the Metropolitan New York banking upon consummation of this proposal. Considerations market,3 and seek business primarily from United relating to the convenience and needs of the communi- States companies that are not affiliated with Japanese ty to be served are consistent with, but lend no weight firms. Based upon the facts of record, including the toward, approval of this application. de novo status of Bank, the Board concludes that the On the basis of all of the facts of record, the Board proposed transaction would have no adverse effect on concludes that the banking considerations involved in competition. Accordingly, competitive considerations this proposal are adverse and are not outweighed by are consistent with approval. any relevant competitive or convenience and needs Section 3(c) of the Act requires the Board in every considerations. Accordingly, it is the Board's judg- case to consider the financial resources of the appliment that approval of the application would not be in cant organization and the bank or bank holding compathe public interest and that the application should be, ny to be acquired. The Board has previously stated and hereby is, denied for the reasons summarized that it believes that the principles of national treatment above. and competitive equity require that, in general, foreign By order of the Board of Governors, effective banks seeking to establish or acquire banking organi- February 26, 1986. zations in the United States should meet the same general standards of strength, experience and reputa- Voting for this action: Vice Chairman Martin and Gover- tion as are required of domestic banking organizations nors Wallich, Rice, Seger, Angell, and Johnson. Absent and and should be able to serve on a continuing basis as a not voting: Chairman Volcker. source of strength to their banking operations in the United States.4 The Board also is aware, however, WILLIAM W. WILES that foreign banks operate outside the United States in [SEAL] Secretary of the Board accordance with different regulatory and supervisory requirements, accounting principles, asset quality standards, and banking practices and traditions, and that these differences make it difficult to compare the The Mitsubishi Trust and Banking Corporation capital positions of domestic and foreign banks. Tokyo,Japan The appropriate balancing of these concerns raises a number of complex issues that the Board believes Order Approving the Formation of a Bank Holding Company 1. As of March 31, 1985. The Mitsubishi Trust and Banking Corporation, To- 2. As of September 30, 1985. kyo, Japan, has applied under section 3(a)(1) of the 3. The Metropolitan New York banking market is defined to Bank Holding Company Act ("Act"), 12 U.S.C. include New York City, Nassau, Putnam, Rockland, Westchester, and western Suffolk Counties in New York State; the northeastern § 1842(a)(1), for the Board's prior approval to acquire two-thirds of Bergen County and eastern Hudson County in New 100 percent of the voting shares of Mitsubishi Trust & Jersey; and southwestern Fairfield County in Connecticut. 4. E.g., The Industrial Bank of Japan, Ltd., 72 FEDERAL RESERVE Banking Corporation (U.S.A.) ("Bank"), New York, BULLETIN 71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL New York, a de novo bank. RESERVE BULLETIN 518 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 257 require careful consideration and are currently under By order of the Board of Governors, effective review. In this regard, the Board is currently reexam- February 19, 1986. ining the capital standards of United States banking organizations on a basis that may afford greater com- Voting for this action: Chairman Volcker and Governors parability with those of foreign banks. Consultations Martin, Wallich, Rice, Angell, and Johnson. Voting against this action: Governor Seger. also are being pursued with foreign banking authorities concerning appropriate capital standards for international banks. Pending the outcome of the policy re- JAMES MCAFEE view, the Board has determined to consider on a case- [SEAL] Associate Secretary of the Board by-case basis the issues raised by foreign bank applications to acquire domestic banks. In the present instance, the primary capital ratio of Dissenting Statement of Governor Seger Applicant as publicly reported is well below the Board's capital guidelines.5 However, after certain I dissent from the Board's action in this case. I believe adjustments to take account of Japanese banking and that foreign banking organizations whose publicly reaccounting practices (particularly equity securities ported capital is well below the Board's capital guidethat are carried on Applicant's balance sheet at histori- lines for U.S. banking organizations have an unfair cal cost, which is substantially below their market competitive advantage in the United States over dovalue) the capital ratio more nearly approximates U.S. mestic banking organizations and should therefore be standards. The Board has also considered other fac- judged against the same financial and managerial stantors that mitigate the Board's concern. The Board has dards, including the Board's capital adequacy guideplaced significant weight on the fact that Applicant will lines, as are applied to domestic banking organizaestablish Bank de novo, and that Bank will be strongly tions. capitalized and small in relation to Applicant. Appli- In addition, I am concerned, that while this applicacant is in compliance with the capital and other tion would permit a large Japanese banking organizafinancial requirements of Japanese banking organiza- tion to acquire a bank in the U.S., U.S. banking tions. Applicant also has a stable funding base that organizations are not permitted to make comparable consists of a substantial amount of deposits with acquisitions in Japan. While some progress is being maturities of at least five years. made in opening Japanese markets to U.S. banking The Board expects that Applicant will maintain organizations, U.S. banking organizations and other Bank as among the more strongly capitalized banking financial institutions, in my opinion, are still far from organizations of comparable size in the United States. being afforded the full opportunity to compete in Based on these and other facts of record, the Board Japan. concludes that the financial and managerial factors are consistent with approval of this application. Consider- February 19, 1986 ations relating to the convenience and needs of the community to be served also are consistent with approval. Orders Issued Under Sections 3 and 4 of the Based upon the foregoing and other facts of record, Bank Holding Company Act the Board has determined that consummation of the transaction would be in the public interest and that the Bancorp of Mississippi, Inc. application should be, and hereby is, approved. The Tupelo, Mississippi transaction shall not be consummated before the thirtieth calendar day following the effective date of this Order Approving the Acquisition of Shares in a Bank Order, or later than three months after the effective Holding Company date of this Order, and Bank shall be opened for business not later than six months after the effective Bancorp of Mississippi, Inc., Tupelo, Mississippi, a date of this Order. The latter two periods may be bank holding company within the meaning of the Bank extended for good cause by the Board or the Federal Holding Company Act (12 U.S.C. § 1841 et seq.) Reserve Bank of New York, pursuant to delegated ("Act" or "BHC Act"), has applied for the Board's authority. approval under section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire 4.99 percent of the voting shares, and up to $7.1 million principal amount of convertible subordinated debentures, of First Missis- 5. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985), sippi National Corporation, Hattiesburg, Mississippi 71 FEDERAL RESERVE BULLETIN 445 (1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
258 Federal Reserve Bulletin • April 1986 ("First Mississippi").1 As a result of this transaction, Bank has offices. The Board concludes that the pro- Applicant would indirectly acquire an interest in First posed transaction would have no adverse effect on Mississippi National Bank, Hattiesburg, Mississippi existing competition in any relevant market. ("Bank"). The Board has also examined the effects of the Applicant has also applied under section 4(c)(8) of proposed transaction on probable future competition the Act (12 U.S.C. § 1843(c)(8)) to acquire an indirect in the relevant geographic markets. In evaluating the interest in Continental Leasing Corporation, Hatties- effects of a proposal on probable future competition, burg, Mississippi, a company that engages in the the Board considers market concentration, the number origination and servicing of equipment leases. This of probable future entrants into the market, the size of activity has been determined by the Board to be the bank to be acquired, and the attractiveness of the closely related to banking and permissible for bank market for entry on a de novo or foothold basis absent holding companies under section 225.25(b)(5) of Regu- approval of the acquisition. After consideration of lation Y (12 C.F.R. § 225.25(b)(5)). these factors in the context of the specific facts of this Notice of the applications, affording an opportunity case, the Board has concluded that consummation of for interested persons to submit comments, has been the proposed transaction would not have a significant given in accordance with sections 3 and 4 of the Act adverse effect on probable future competition in any (50 Federal Register 45,666 (1985)). The time for filing relevant market. comments has expired, and the Board has considered First Mississippi operates in three banking markets the applications and all comments received in light of in which Applicant is not represented: the Biloxi, the factors set forth in section 3(c) of the Act and the Jackson, and Hattiesburg banking markets. The reconsiderations specified in section 4(c)(8) of the Act. cord indicates that Bank is not a market leader in Applicant, the fourth largest commercial banking either the Biloxi or the Jackson banking markets and organization in Mississippi, controls one subsidiary that the Biloxi market is only moderately concentratbank with total deposits of $517.2 million, representing ed, with the three largest commercial banks holding 69 3.9 percent of the total deposits in commercial banks percent of the total deposits in commercial banks in in the state.2 First Mississippi, the seventh largest the market. Bank's other market, the Hattiesburg commercial banking organization in the state, controls banking market, is not located in a Metropolitan one subsidiary bank with total deposits of $315.7 Statistical Area. On the basis of these considerations million, representing 2.4 percent of the total deposits and other facts of record, the Board concludes that in commercial banks in Mississippi. Upon consumma- elimination of Applicant as a probable future entrant tion of the proposed transaction, Applicant would into the markets served by First Mississippi would not become the third largest banking organization in Mis- have a substantial anticompetitive effect in any of sissippi, and would control total deposits of $832.9 those markets. million, representing 6.2 percent of the total deposits The financial and managerial resources and future in commercial banks in the state. Consummation of prospects of Applicant, First Mississippi, and their the proposed acquisition would not have a significant subsidiary banks are consistent with approval of these adverse effect on the concentration of banking re- applications. Considerations relating to the convesources in Mississippi. nience and needs of the communities to be served also Applicant's subsidiary bank, Bank of Mississippi, are consistent with approval. and Bank do not compete in the same banking mar- Although Applicant would directly acquire only 4.99 kets,3 and the principals of Applicant do not control percent of First Mississippi's voting shares, as a result any other commercial banks in the markets in which of the proposal Applicant would also acquire such measures of control over First Mississippi as to require a determination that it would control First Mississippi for purposes of the BHC Act. Under the terms 1. Because current Mississippi law prohibits multibank holding of the Debenture and Stock Purchase Agreement companies, the convertibility of the debentures into voting shares of First Mississippi is conditioned upon enactment of an amendment to ("Debenture Agreement") between the parties, First Mississippi law that would have the effect of permitting Applicant to Mississippi would, upon Applicant's acquisition of the convert the debentures. Should such an amendment be enacted, shares and debentures, immediately use its best efforts Applicant would gain control, upon conversion of the debentures, of up to 41.96 percent of First Mississippi's voting shares. to give Applicant 42 percent of the seats on its board of 2. Deposit data are as of December 31, 1984. directors. Applicant would also obtain the right to 3. Bank of Mississippi operates offices in twelve banking markets: name two directors to the board of Bank. In addition, Tupelo, Memphis, Calhoun County, Alcorn County, Pontotoc County, Itawamba County, Monroe County, Grenada County, Chicasaw the Debenture Agreement requires the prior approval County, Winston County, Clay County, and Lowndes County. Bank by Applicant of certain major corporate actions of operates offices in three banking markets: Biloxi, Jackson, and Hattiesburg. First Mississippi, and also requires that Applicant and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 259 First Mississippi enter into a consulting agreement on the terms of Applicant's agreement with First pursuant to which Applicant would provide First Mis- Mississippi, Applicant's proposed acquisition of sissippi with policy and operations advice. shares and debentures does not constitute a violation The BHC Act defines control to include any situa- of Mississippi law. Furthermore, the Commissioner of tion where the Board determines that a company Banking has concurred with the Attorney General's directly or indirectly exercises a controlling influence Opinion, and has found that the terms of the Debenover the management or policies of a bank, without ture Agreement would not give Applicant the "type of regard to whether that company owns or controls control" over First Mississippi that would make Apvoting shares of a bank or has the ability to elect a plicant a prohibited group banking system under Mismajority of the banks' board of directors.4 In the sissippi's statute. Board's judgment, Applicant will exercise control or a In determining the consistency of a proposed bank controlling influence over First Mississippi for pur- holding company acquisition with state law, the Board poses of section 2(a)(2) of the BHC Act and the has given substantial weight to the opinion of a state Board's regulations thereunder.5 Applicant has indi- Attorney General or relevant state administrative cated its concurrence in this conclusion by filing this agency in the absence of a dispositive judicial decision application. concerning the relevant provisions and where the In acting on an application under the BHC Act, the Board's review of the opinion reveals that it is consis- Board is required to consider, in addition to the tent with the statutory language being interpreted and competitive, financial, managerial, and convenience the purpose of the statute.8 In this case, the Board and needs factors set out in the Act, whether the concludes that the opinions of the Mississippi Attorproposal would comply with the provisions of relevant ney General and Commissioner of Banking may be state law. The Board may not approve an application relied upon by the Board as evidence of the consistenthat would result in a violation of state law.6 cy of this proposal with Mississippi law. In view of Under current Mississippi law, Applicant is prohib- these opinions and of all other facts of record, the ited from becoming a multibank holding company. The Board concludes that consummation of the proposed Mississippi banking statutes provide that no corpora- transaction would not violate Mississippi law.9 tion shall operate in Mississippi if "any object, pur- Applicant has also applied, pursuant to section pose, or power of such corporation be, directly or 4(c)(8) of the Act, to acquire an indirect interest in indirectly, the organization, ownership or operation of First Mississippi's nonbanking subsidiary, Continental banks in groups or chains, or in systems commonly Leasing Corporation, which engages in the origination referred to as group banking systems or chain banking and servicing of equipment leases. There is no evisystems."7 According to the Attorney General of the dence in the record that approval of this proposal State of Mississippi, "group banking" means the would result in undue concentration of resources, control of a bank by a holding company that also unfair competition, conflicts of interest, unsound controls another independent bank. Neither the stat- banking practices, or other adverse effects. Accordute nor any Mississippi banking regulation contains a ingly, the Board has determined that the balance of the definition of the terms "group banking system" or public interest factors it must consider under section "group banking." Furthermore, according to the Mis- 4(c)(8) of the Act is favorable and consistent with sissippi Commissioner of Banking, there have been no approval. court decisions or opinions by the Mississippi Attor- Based on the foregoing and other facts of record, the ney General defining the circumstances under which a Board has determined that the proposed transaction one-bank holding company would be found to control would be in the public interest. Accordingly, the another bank so as to violate the Mississippi statute. applications under sections 3 and 4 of the Act are The Attorney General of Mississippi, however, has approved for the reasons summarized above. The provided an Official Opinion to the effect that, based 8. See, e.g., Fourth Financial Corporation, 69 FEDERAL RESERVE 4. 12 U.S.C. § 1841(a)(2)(C). BULLETIN 95 (1983); Credit and Commerce American Holdings, 5. 12 U.S.C. § 1841(a)(2); 12 C.F.R. § 225.3l(d)(2)(i) (setting forth N.V., 65 FEDERAL RESERVE BULLETIN 254 (1979). a rebuttable presumption of control in the case of an agreement 9. The Board's determination that control exists for the purposes of pursuant to which significant influence is exercised over the manage- the BHC Act does not compel the Board to find that Applicant would ment or operations of a bank). See also Policy Statement on Nonvot- control First Mississippi in a manner inconsistent with Mississippi ing Equity Investments by Bank Holding Companies, 12 C.F.R. law. See Fourth Financial Corporation, 69 FEDERAL RESERVE BUL- § 225.143. LETIN 95 (1983), and Northwest Kansas Banc Shares, Inc., 69 6. Whitney National Bank in Jefferson Parish v. Bank of New FEDERAL RESERVE BULLETIN 98 (1983), in which the Board deter- Orleans & Trust Co., 379 U.S. 441 (1965). mined that control existed for purposes of the BHC Act but not for 7. Miss. Code Ann. § 81-7-19 (1972). purposes of Kansas banking law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
260 Federal Reserve Bulletin • April 1986 acquisition of an interest in First Mississippi's subsid- Southern National Bank of South Carolina, Columbia, iary bank shall not be consummated before the thirti- South Carolina ("South Carolina Bank"). eth calendar day following the effective date of this Applicant has also applied for the Board's approval Order, and neither the banking acquisition nor the under section 4(c)(8) of the Act (12 U.S.C. nonbanking acquisition shall occur later than three § 1843(c)(8)) and section 225.23 of the Board's Regulamonths after the effective date of this Order, unless tion Y (12 C.F.R. § 225.23) to acquire C&S-South such period is extended for good cause by the Board or Carolina's nonbanking subsidiaries, all located in Coby the Federal Reserve Bank of St. Louis, acting lumbia, South Carolina: Carolina Credit Life Insurpursuant to delegated authority. The determination ance Company ("Carolina Life"), a company that with respect to Applicant's acquisition of an interest in engages in underwriting as reinsurer credit life and Continental Leasing Corporation is subject to all of the disability insurance directly related to extensions of conditions set forth in Regulation Y, including sections credit by South Carolina Bank; Citizens and Southern 225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) and Systems, Inc. ("C&S Systems"), a company that 225.23(b)), and to the Board's authority to require engages in data processing activities; C&S Financial such modifications or termination of the activities of a Services, Inc. ("C&S Financial"), an inactive compabank holding company or any of its subsidiaries as the ny that formerly engaged in equipment leasing; and Board finds necessary to assure compliance with, and Bank Management Advisory Services, Inc. ("Bank prevent evasions of, the provisions and purposes of Advisory"), an inactive company that formerly prothe Act and the Board's regulations and orders issued vided management and operations consulting services thereunder. to non-affiliated banks. These activities have been By order of the Board of Governors, effective determined by the Board to be closely related to February 26, 1986. banking and permissible for bank holding companies under sections 225.25(b)(5), (7), (9), and (11) of Regu- Voting for this action: Vice Chairman Martin and Gover- lation Y (12 C.F.R. § 225.25(b)(5), (7), (9), and (11)). nors Wallich, Rice, Seger, Angell, and Johnson. Absent and The determination related to the authority of bank not voting: Chairman Volcker. holding companies to underwrite credit life and disability insurance in connection with extensions of WILLIAM W. WILES credit has not been affected by amendments to section [SEAL] Secretary of the Board 4(c)(8) of the Act limiting the permissible insurance investments of bank holding companies.2 Notice of the applications, affording an opportunity Citizens and Southern Georgia Corporation for interested persons to submit comments, has been Atlanta, Georgia given in accordance with sections 3 and 4 of the Act (50 Federal Register 50,346 (1985)). The time for filing Order Approving Acquisition of a Bank and comments has expired, and the Board has considered Nonbanking Companies the applications and all comments received in light of the factors set forth in section 3(c) of the Act and the Citizens and Southern Georgia Corporation, Atlanta, considerations specified in section 4(c)(8) of the Act. Georgia, a bank holding company within the meaning Applicant is the largest commercial banking organiof the Bank Holding Company Act (12 U.S.C. § 1841 zation in Georgia, with six subsidiary banks in Georgia et seq.) ("Act"), has applied for the Board's approval that control aggregate deposits of approximately $5.4 under section 3(a)(3) of the Act (12 U.S.C. billion, representing 17.9 percent of the total deposits § 1842(a)(3)) to acquire the successor by merger to The in commercial banks in Georgia.3 Through its subsid- Citizens and Southern Corporation, Columbia, South iary, Landmark Banking Corporation of Florida, Ap- Carolina ("C&S-South Carolina").1 As a result of the plicant is also the sixth largest commercial banking acquisition, Applicant would acquire indirectly C&S- organization in Florida. Its 22 subsidiary banks in South Carolina's subsidiary bank, The Citizens and Florida control aggregate deposits of approximately $3.2 billion, representing 4.9 percent of the total deposits in commercial banks in that state. C&S-South Carolina is the second largest commercial banking 1. Applicant has also applied under section 3(a)(1) of the Act organization in South Carolina, with one subsidiary (12 U.S.C. § 1842(a)(1)) for approval for its wholly owned inactive bank that holds deposits of approximately $2.4 billion, subsidiary, Citizens and Southern Acquisition Corporation, Atlanta, Georgia ("Acquisition Corporation"), to become a bank holding company through merger with C&S-South Carolina. Acquisition 2. See Garn-St Germain Depository Institutions Act of 1982, Pub. Corporation would be the surviving corporation in the merger and L. No. 97-320, § 601, 96 Stat. 1469, 1536-38 (1982). would change its name to The Citizens and Southern Corporation. 3. State banking data are as of December 31, 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 261 representing 22.3 percent of the total deposits in market, with $186 million in deposits therein, reprecommercial banks in South Carolina. senting 16.5 percent of the total deposits in commer- Section 3(d) of the Act (12 U.S.C. § 1842(d)), the cial banks in the market.10 C&S-South Carolina is the Douglas Amendment, prohibits the Board from ap- fourth largest commercial banking organization in the proving an application by a bank holding company to Augusta banking market with $110.4 million in deposacquire control of any bank located outside of the its, representing 9.8 percent of the total deposits in holding company's home state,4 unless the acquisition commercial banks in the market. Upon consummation is "specifically authorized by the statute laws of the of the proposed acquisition, Applicant would remain State in which such bank is located, by language to the second largest commercial banking organization in that effect and not merely by implication." The statute the Augusta banking market, and would control 26.4 laws of South Carolina authorize the acquisition of a percent of the total deposits in commercial banks in bank or bank holding company in South Carolina by a the market. bank holding company that has its principal place of The share of deposits held by the four largest business in a state within a defined "Southern Re- commercial banking organizations in the Augusta margion," including Georgia, and that has more than 80 ket is 82.3 percent and would increase to 90.3 percent percent of the total deposits held by its bank subsidiar- upon consummation of the proposed transaction. The ies at bank subsidiaries located within the Southern market's Herfindahl-Hirschman Index ("HHI") is Region.5 Such acquisitions are permitted if the laws of 2513 and would increase 325 points to 2838 upon the state in which the acquiring institution has its consummation of the proposed transaction, making principal place of business would permit the acquisi- this proposal one that would be subject to challenge tion of the acquiror bank holding company by the under the Department of Justice Merger Guidelines.11 South Carolina bank holding company sought to be Although consummation of the proposed acquisition acquired.6 Applicant is a Southern Region bank holdwould eliminate existing competition between Appliing company under the South Carolina act,7 and its cant and C&S-South Carolina in the Augusta banking principal place of business is in Georgia. Georgia has market, numerous other commercial banking organienacted a similar statute,8 which permits the acquisizations would remain as competitors after consummation of a Georgia bank or bank holding company, such tion of the proposal. In addition, the Board has conas Applicant, by a bank holding company located in cluded that the effect of this proposal on existing South Carolina, such as C&S-South Carolina. competition is mitigated by the extent of competition Based on its review of the relevant South Carolina offered by thrift institutions in the market.12 and Georgia statutes, the Board has determined that Five thrift institutions in the Augusta banking marthe Georgia statute and the proposed acquisition satis- ket hold 40.1 percent of the total deposits in depository fy the conditions of the South Carolina regional inter- institutions in the market. One of the thrift institutions, state banking statute and that South Carolina has by Bankers First Federal Savings and Loan Association, statute expressly authorized a Georgia bank holding Augusta, Georgia ("Bankers First"), is the second company, such as Applicant, to acquire a South Caro- largest depository institution in the market with deposlina bank holding company, such as C&S-South Carolina. Accordingly, the Board concludes that approval of Applicant's proposal to acquire a bank in South 10. Market deposit data are as of June 30, 1984. 11. Under the revised Department of Justice Merger Guidelines, 49 Carolina is not barred by the Douglas Amendment. Federal Register 26,823 (June 29, 1984), any market in which the post- Applicant's primary subsidiary bank in Georgia, merger HHI is above 1800 is considered highly concentrated. In such markets, the Department is likely to challenge any merger that Citizens and Southern National Bank, competes with produces an increase in the HHI of more than 50 points unless other South Carolina Bank in the Augusta, Georgia, banking factors indicate that the merger will not substantially lessen competimarket.9 Applicant is the second largest of ten com- tion. If the increase in the HHI exceeds 100 points and the HHI substantially exceeds 1800, the Department has indicated that only in mercial banking organizations in the Augusta banking extraordinary cases will other factors establish that the merger is not likely substantially to lessen competition. Other factors include the post-merger HHI, the increase in the HHI, changing market conditions, the financial condition of the firm to be acquired, ease of entry, 4. A bank holding company's home state is that state in which the nature of the product, substitute products, similarities in firms that are operations of the bank holding company's banking subsidiaries were subject to the transaction, and increased efficiencies that may result principally conducted on July 1, 1966, or the date on which the from the transaction. company became a bank holding company, whichever is later. The Department has not advised the Board of any objection to this 5. S.C. Code Ann. § 34-24-30 (Law. Co-op. Supp. 1985). transaction. 6. S.C. Code Ann. § 34-24-50(b). 12. The Board has previously determined that thrift institutions 7. All of the deposits of Applicant's bank subsidiaries are held by have become, or at least have the potential to become, major banks located in states within the Southern Region. competitors of banks. NCNB Corporation, 70 FEDERAL RESERVE 8. Ga. Code Ann. §§ 7-1-620 to 7-1-625 (Supp. 1985). BULLETIN 225 (1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLE- 9. The Augusta banking market is approximated by Richmond and TIN 934 (1983); First Tennessee National Corporation, 69 FEDERAL Columbia Counties, Georgia, and Aiken County, South Carolina. RESERVE BULLETIN 298 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
262 Federal Reserve Bulletin • April 1986 its of $353.1 million. The fourth and sixth largest lines,16 the Board has stated that, in reviewing acquisidepository institutions in the market are also thrift tion proposals, it will take into consideration both the institutions. All of the thrift institutions in the market stated primary capital ratio and the primary capital actively compete with commercial banks in offering ratio after deducting intangibles. In acting on applicatransaction accounts and making consumer loans. The tions under the Guidelines, the Board will also take record indicates that, as of June 1984, approximately into account the nature and amount of intangible 15 percent of the market's consumer loans were made assets and, as appropriate, will adjust capital ratios to by thrift institutions. In addition, three of the five thrift include intangible assets on a case-by-case basis. institutions are engaged in commercial lending. One of In its assessment of Applicant's capital, the Board these, Bankers First, has embarked on a program to has considered the fact that, at the time of consummatriple the size of its commercial loan portfolio. On the tion of this proposal, Applicant would meet the minibasis of these facts, the Board considers the presence mum capital ratios required under the Board's Guideof thrift institutions to be a significant factor in assess- lines without undue reliance on intangible assets and ing the competitive effects of this proposal.13 Accord- with no reliance on goodwill. Moreover, Applicant has ingly, in view of the competition provided by thrift submitted a capital plan by which it will continue to institutions, and the number and size of competitors improve its tangible primary capital ratio and its total remaining in the market, the Board concludes that capital ratio. Based upon these and other facts of consummation of the proposed acquisition is not likely record, the Board concludes that the financial and to have a significant adverse effect on competition in managerial resources and future prospects of Applithe Augusta banking market. cant, C&S-South Carolina, and their respective sub- The Board has also examined the effect of Appli- sidiary banks are consistent with approval. Considercant's acquisition of C&S-South Carolina on probable ations relating to the convenience and needs of the future competition in the relevant geographic markets communities to be served also are consistent with in light of the Board's proposed guidelines for assess- approval of Applicant's proposal to acquire South ing the competitive effects of market-extension merg- Carolina Bank. The Board concludes that banking ers or acquisitions.14 In view of the existence of factors are consistent with approval of this applicanumerous other potential entrants from states within tion. the southeastern interstate banking region into each of Applicant has also applied, under section 4(c)(8) of the markets served by C&S-South Carolina or Appli- the Act, to acquire the nonbanking subsidiaries of cant, the Board has concluded that consummation of C&S-South Carolina: Carolina Life, C&S Systems, the proposed transaction would not have any signifi- C&S Financial, and Bank Advisory.17 The market cant adverse effects on probable future competition in shares of C&S-South Carolina's nonbanking subsidiarany relevant market. ies are de minimis. After consideration of all of the With respect to the financial and managerial re- facts of record, the Board concludes that Applicant's sources of Applicant and the effect of the proposed acquisition of C&S-South Carolina's nonbanking subtransaction, the Board has stated and continues to sidiaries would not significantly affect competition in believe that capital adequacy is an especially impor- any relevant market. Furthermore, there is no evitant factor in the analysis of bank holding company dence in the record to indicate that approval of this proposals, and that it will consider the implications of proposal would result in undue concentration of rea significant level of intangible assets in evaluating an sources, unfair competition, conflicts of interests, application.15 Under its Capital Adequacy Guide- unsound banking practices, or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the public interest factors it must consider under section 4(c)(8) of the Act is 13. If 50 percent of the deposits held by thrift institutions were favorable and consistent with approval of the applicaincluded in the calculation of market concentration, Applicant would control 12.4 percent of the total deposits in the market and Bank tions to acquire C&S-South Carolina's nonbanking would control 7.4 percent. Consummation of the proposed acquisition subsidiaries. would increase the HHI by 182 points to 1783 and would increase the four-firm concentration ratio from 66.1 percent to 73.4 percent. 14. "Proposed Policy Statement of the Board of Governors of the Federal Reserve System for Assessing Competitive Factors Under the Bank Merger Act and the Bank Holding Company Act," 47 Federal Register 9017 (1982). Although the proposed policy statement has not 16. Capital Adequacy Guidelines, 71 FEDERAL RESERVE BULLETIN been adopted by the Board, the Board has applied the criteria set forth 445 (1985). in the proposed policy statement in its analysis of the effects of 17. Both C&S Financial, which was engaged in equipment leasing, proposals on probable future competition. and Bank Advisory, which was engaged in management consulting for 15. See Citizens Financial Corporation, 71 FEDERAL RESERVE non-affiliated banks, are currently inactive. C&S Financial, however, BULLETIN 585 (1985); Security Banks of Montana, 71 FEDERAL continues to receive revenues from leasing contracts entered into RESERVE BULLETIN 246 (1985). before 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 263 Based on the foregoing and other facts of record, the tion Y (12 C.F.R. § 225.23) to acquire the following Board has determined that the applications under nonbank subsidiaries of Southern: sections 3 and 4 of the Act should be and hereby are 1. World Acceptance Corporation, Greenville, approved. The acquisition of South Carolina Bank South Carolina ("World"), which engages in makshall not be consummated before the thirtieth calendar ing, acquiring, and servicing loans or other extenday following the effective date of this Order, and sions of credit as a consumer finance company and neither the banking acquisition nor the nonbanking acting as agent in the sale of credit life, disability, or acquisitions shall occur later than three months after involuntary unemployment insurance related to spethe effective date of this Order, unless such period is cific extensions of credit and property and casualty extended for good cause by the Board or by the insurance related to extensions of credit where such Federal Reserve Bank of Atlanta, acting pursuant to extensions of credit are less than $10,000. The delegated authority. The determination with respect to Board has found these activities to be permissible Applicant's acquisition of C&S-South Carolina's non- for bank holding companies under sections banking subsidiaries is subject to all of the conditions 225.25(b)(1) and (8) of Regulation Y. (12 C.F.R. set forth in Regulation Y, including sections 225.4(d) §§ 225.25(b)(1) and (8)). In addition, World's credit and 225.23(b) (12 C.F.R. §§ 225.4(d) and 225.23(b)), related property and casualty insurance activities and to the Board's authority to require such modifica- are closely related to banking under section tions or termination of activities of a bank holding 4(c)(8)(B) of the Act. (12 U.S.C. § 1843(c)(8)(B)). company or any of its subsidiaries as the Board finds 2. Southern International Corporation, Charlotte, necessary to assure compliance with, and prevent North Carolina ("Southern International"), a joint evasions thereof, the provisions and purposes of the venture company formed with Southern National Act and the Board's regulations and orders issued Corporation, Lumberton, North Carolina ("Souththereunder. ern National"), an unaffiliated bank holding compa- By order of the Board of Governors, effective ny, which engages in lending, data processing, man- February 4, 1986. agement consulting and international finance activities. The Board has found these activities to be Voting for this action: Chairman Volcker and Governors permissible for bank holding companies under sec- Martin, Wallich, and Partee. Governor Wallich abstained tions 225.25(b)(1), (b)(7), and (b)(ll) of the Board's from the insurance portion of these applications. Absent and Regulation Y.1 (12 C.F.R. §§ 225.25(b)(1), (b)(7), not voting: Governors Rice and Seger. and (b)(ll)). JAMES MCAFEE Notice of these applications, affording opportunity [SEAL] Associate Secretary of the Board for interested persons to submit comments, has been given in accordance with sections 3 and 4 of the Act (51 Federal Register 65 and 4810 (January 2 and First Union Corporation February 7, 1986)). The time for filing comments has Charlotte, North Carolina expired, and the Board has considered the applications and all comments received in light of the factors and Order Approving Acquisition of a Bank Holding considerations set forth in sections 3(c) and 4(c)(8) of Company and Acquisition of Nonbank Companies the Act.2 (12 U.S.C. §§ 1842(c) and 1843(c)(8)). First Union Corporation, Charlotte, North Carolina, a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended (the 1. The Board also found these activities to be closely related to "Act") (12 U.S.C. §§ 1841 et seq.), has applied for the banking and permissible for bank holding companies by Order approving the applications of Southern and Southern National to acquire Board's approval under section 3(a)(3) of the Act Southern International. Southern Bancorporation, Inc. and Southern (12 U.S.C. § 1842(a)(3)) to acquire the successor by National Corporation, 69 FEDERAL RESERVE BULLETIN 224 (1983). merger of Southern Bancorporation, Inc., Greenville, 2. The Board received a comment on behalf of the National Association of Life Underwriters and the National Association of South Carolina ("Southern"), also a bank holding Professional Insurance Agents in connection with Applicant's procompany, and thereby to acquire indirectly Southern posed acquisition of World. This comment urges the Board to ensure Bank and Trust Company, Greenville, South Carolina that World's insurance activities are conducted in accordance with the standards established by section 4(c)(8) of the Act and, in particular, ("Bank"). by the Garn-St Germain Depository Institutions Act of 1982. Pub. L. Applicant has also applied for the Board's approval No. 97-320, § 601, 96 Stat. 1469, 1536-38 (codified as 12 U.S.C. § 1843(c)(8))(1982). In this regard, the Board notes that World's under section 4(c)(8) of the Act (12 U.S.C. insurance activities are authorized by section 4(c)(8)(A) and (B) of the § 1843(c)(8)) and section 225.23 of the Board's Regula- Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
264 Federal Reserve Bulletin • April 1986 Applicant is the third largest commercial banking banking statute and that South Carolina has by statute organization in North Carolina, controlling deposits of expressly authorized a North Carolina bank holding approximately $6.2 billion in North Carolina, repre- company, such as Applicant, to acquire a South Carosenting approximately 20 percent of total deposits in lina bank, such as Bank.9 Accordingly, the Board commercial banks in the state.3 Applicant also is the concludes that approval of Applicant's proposal to sixth largest commercial banking organization in Flori- acquire a bank in South Carolina is not barred by the da, controlling total deposits of approximately $3.4 Douglas Amendment. billion in Florida, representing approximately 4.9 per- The Board has considered the effects of the proposal cent of total deposits in commercial banks in that upon competition in the relevant banking markets. The state. Southern is the fourth largest commercial bank- proposal involves the combination of two sizeable ing organization in South Carolina, with total deposits commercial banking organizations that are among the of approximately $889.2 million, representing approxi- larger banking organizations in their respective states. mately 8.1 percent of total deposits in commercial However, because Bank and the banking subsidiaries banks in that state. of Applicant operate in different markets in different Section 3(d) of the Act (12 U.S.C. § 1842(d)), the states, consummation of the proposal would not elimi- Douglas Amendment, prohibits the Board from ap- nate significant existing competition in any relevant proving an application by a bank holding company to market. acquire control of any bank located outside of the In view of the existence of numerous other potential holding company's home state,4 unless such acquisi- entrants from states within the southeastern interstate tion is "specifically authorized by the statute laws of banking region into each of the markets served by the State in which such bank is located, by language to Bank or Applicant, the Board has concluded that that effect and not merely by implication." The statute consummation of the proposed transaction would not laws of South Carolina authorize the acquisition of a have any significant adverse effects on probable future bank or bank holding company in that state by a bank competition in any relevant market. holding company that has its principal place of busi- The financial and managerial resources and future ness in a state within the "Southern Region," includ- prospects of Applicant, Southern, and their subsidiaring North Carolina, and that has more than 80 percent ies are considered satisfactory. Considerations relatof the total deposits held by its bank subsidiaries at ing to the convenience and needs of the communities bank subsidiaries located within the Southern Region.5 to be served are also consistent with approval. Such acquisitions are permitted if the laws of the state Applicant has also applied, pursuant to section in which the acquiring institution has its principal 4(c)(8) of the Act, to acquire World and Southern place of business would permit the acquisition of the International, nonbank companies that engage in lendacquiror bank holding company by a South Carolina ing, credit insurance, data processing, management bank or bank holding company on a reciprocal basis.6 consulting and international finance activities. Appli- Applicant is a Southern Region bank holding company cant and its subsidiaries and World and Southern are under the South Carolina act,7 and its principal place not major competitors in any relevant market. Accordof business is in North Carolina. North Carolina has ingly, consummation of the proposed transaction enacted a similar reciprocal statute,8 which permits would not have any significant adverse effects on the acquisition of a North Carolina bank or bank competition, either existing or potential, in any releholding company by a bank holding company located vant market. in South Carolina. Further, there is no evidence in the record to Based on its review of the relevant South Carolina indicate that approval of Applicant's proposal to acand North Carolina statutes, the Board has previously quire World and Southern International would result determined that the North Carolina statute satisfies in undue concentration of resources, unfair competithe conditions of the South Carolina regional interstate tion, conflicts of interests, unsound bank practices or other adverse effects on the public interest. Accordingly, the Board has determined that the balance of the 3. All banking data are as of September 30, 1985. public interest factors it must consider under section 4. A bank holding company's home state is that state in which the 4(c)(8) of the Act is favorable and consistent with operations of the bank holding company's banking subsidiaries were approval of the applications to acquire Southern Interprincipally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. Appli- national and World. cant's home state is North Carolina. 5. S.C. Code Ann. § 34-24-30 (Law. Co-op. Supp. 1984). 6. S.C. Code Ann. § 34-24-50(b). 7. All of the deposits of Applicant's bank subsidiaries are held by banks located in states within the Southern Region. 9. See NCNB Corporation (Bankers Trust of South Carolina), 72 8. N.C. Gen. Stat. §§ 53-209 et seq. (Supp. 1984). FEDERAL RESERVE BULLETIN 57 (1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 265 Based on the foregoing and other facts of record, the holding company, and thereby to acquire indirectly Board has determined that the applications under Merrill Trust Company, Bangor, Maine, and Merrill sections 3 and 4 of the Act should be and hereby are Bank, N.A., Farmingham, Maine.1 approved. The transactions shall not be consummated Fleet also has applied for the Board's prior approval before the thirtieth calendar day following the effective under section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) date of this Order, or later than three months after the and section 225.23(a)(2) of the Board's Regulation Y effective date of this Order, unless such period is (12 C.F.R. § 225.23(a)(2)) to engage, through FCB, in extended for good cause by the Board or the Federal providing data processing services to FCB's banking Reserve Bank of Richmond, acting pursuant to dele- subsidiaries and unaffiliated financial institutions; to gated authority. The determinations with respect to acquire FCB's nonbanking subsidiary, Pioneer Credit Applicant's acquisition of World and Southern Inter- Corporation, Hartford, Connecticut, a company ennational are subject to all the conditions set forth in gaged in acquiring and servicing consumer, residential Regulation Y, including sections 225.4(d) and mortgage and commercial loans and leasing personal 225.23(b) (12 C.F.R. §§ 225.4(d) and 225.23(b)), and to property; and to acquire Merrill's direct and indirect the Board's authority to require such modifications or nonbanking subsidiaries, Merrill Life Insurance Comtermination of activities of a bank holding company or pany ("MLIC"), a company engaged in the reinsuring any of its subsidiaries as the Board finds necessary to of credit life and credit accident and disability insurassure compliance with the provisions and purposes of ance written in connection with extensions of credit by the Act and the Board's regulations and orders issued Merrill's subsidiary banks, and Maine Information thereunder, or to prevent evasions thereof. Systems, Inc., a company engaged in providing finan- By order of the Board of Governors, effective cial, banking and economic data processing services, February 27, 1986. both of Bangor, Maine.2 These activities have been determined by the Board to be closely related to banking and permissible for bank holding companies, Voting for this action: Vice Chairman Martin and Governors Wallich, Rice, Seger, Angell, and Johnson. Governor 12 C.F.R. §§ 225.25(b)(1), (5), (7), and (9).3 Wallich abstained from voting on those portions of the Notice of the applications, affording an opportunity proposal that related to insurance. Absent and not voting: Chairman Volcker. for interested persons to submit comments, has been given in accordance with sections 3 and 4 of the Act. WILLIAM W. WILES 50 Federal Register 41,739. The time for filing com- [SEAL] Secretary of the Board ments has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) (12 U.S.C. § 1842(c)) Fleet Financial Group, Inc. and the considerations specified in section 4(c)(8) Providence, Rhode Island (12 U.S.C. § 1843(c)(8)) of the Act. Fleet, with domestic deposits of $2.5 billion,4 is the Order Approving Acquisition of Bank Holding largest commercial banking organization in Rhode Companies Fleet Financial Group, Inc., Providence, Rhode Island 1. Fleet also has applied for the Board's prior approval under ("Fleet"), a bank holding company within the mean- section 3(a)(3) of the Act to acquire and exercise options to acquire up to 32 percent of FCB's shares and up to 37 percent of Merrill's shares. ing of the Bank Holding Company Act of 1956, as Fleet states that it would exercise these options only in the event third amended (12 U.S.C. § 1841 et seq.) ("Act"), has parties attempted to acquire a significant interest in FCB or Merrill prior to consummation of the proposal by Fleet. applied for the Board's approval under section 3(a)(3) 2. Fleet intends to continue to conduct the activities of MLIC of the Act (12 U.S.C. § 1842(a)(3)), to acquire all of within Maine, but requests permission to conduct the remaining the voting shares of First Connecticut Bancorp, Inc., nonbanking activities nationwide. 3. The Board received a comment on behalf of the National Hartford, Connecticut ("FCB"), also a bank holding Association of Life Underwriters and the National Association of company, and thereby to acquire indirectly United Professional Insurance Agents in connection with Fleet's proposed Bank and Trust, Hartford, Connecticut; New Britain acquisition of MLIC. This comment urges the Board to ensure that MLIC's insurance activities are conducted in accordance with the National Bank, New Britain, Connecticut; Simsbury standards established by section 4(c)(8) of the Act and, in particular, Bank and Trust Company, Simsbury, Connecticut; by the Garn-St Germain Depository Institutions Act of 1982. Pub. L. No. 97-320, § 601, 96 Stat. 1469, 1536-38 (1982). In this regard, the and The Independent Bank and Trust Company, Wil- Board notes that MLIC's insurance activities are authorized by liamantic, Connecticut. Fleet also has applied for the section 4(c)(8)(A) of the Act, and Fleet has committed that it will Board's approval under section 3(a)(3) of the Act to continue to offer reduced rates for credit insurance through MLIC to customers of Merrill and its subsidiary banks, thus benefiting the acquire all of the voting shares of Merrill Bankshares consumer. 12 C.F.R. 225.25(b)(9), n.7. Company, Bangor, Maine ("Merrill"), also a bank 4. Banking data are as of June 30, 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
266 Federal Reserve Bulletin • April 1986 Island, with 27.6 percent of the total deposits con- Hartford market, FCB is the third largest commercial trolled by commercial banking organizations in the banking organization in the market and controls 11.8 state.5 FCB (deposits of $1.0 billion) is the sixth largest percent of the deposits in commercial banks in the commercial banking organization in Connecticut, con- market. Fleet operates a single recently established trolling 5.6 percent of commercial bank deposits. office in the market that controls less than one percent Merrill (deposits of $562.8 million) is the fifth largest of the deposits in commercial banks in the market. commercial banking organization in Maine, controlling Although the Hartford banking market is highly con- 13.4 percent of commercial bank deposits. Following centrated, with a Herfindahl-Hirschman Index consummation of the proposal, Fleet would remain the ("HHI") of 3125, upon consummation of the proposal, sixth largest commercial banking organization in New the HHI would increase by less than one point.10 England. Fleet is the fourth largest commercial banking orga- The Douglas Amendment prohibits the Board from nization in the New London Banking market and approving an application by a bank holding company controls 6.1 percent of the deposits in commercial to acquire control of any bank located outside of the banks therein. FCB is the fifth largest commercial holding company's home state, unless such acquisition banking organization in the market and controls 5.5 is "specifically authorized by the statute laws of the percent of the deposits in commercial banks therein. state in which such bank is located, by language to that Upon consummation of the proposal, Fleet would effect and not merely by implication."6 Based upon its control 11.7 percent of the deposits in commercial review of the Connecticut and Maine interstate bank- banks in the market and the HHI would increase by 67 ing statutes,7 the Board concludes that Connecticut points to 2057. Accordingly, consummation of this and Maine have by statute expressly authorized, with- proposal would not have a significant adverse effect on in the meaning of the Douglas Amendment, a Rhode existing competition in any relevant market. Island bank holding company, such as Fleet, to ac- The Board has also examined the effect of the quire a bank or a bank holding company located in proposal on probable future competition in the relethose states.8 vant geographic markets and has examined the pro- The Board has carefully considered the effects of the posal in light of the Board's probable future competiproposal upon competition. Fleet and Merrill do not tion guidelines. In this regard, there are numerous compete in any relevant banking market and thus other potential entrants into each of the markets consummation of this proposal would not eliminate served by Fleet, FCB and Merrill. After consideration any significant existing competition between these of these factors in light of the specific facts of this banking organizations. case, the Board has concluded that consummation of Fleet and FCB compete in the New London and this proposal would not have any significant adverse Hartford, Connecticut, banking markets only.9 In the effects on probable future competition in any relevant market. In its evaluation of Fleet's managerial resources, the Board has considered certain violations by Fleet of the Currency and Foreign Transactions Reporting Act 5. On July 1, 1985, Fleet opened a de novo bank in Massachusetts and a de novo bank in Connecticut. The share of state deposits held by ("CFTRA") and the regulations thereunder," as well each bank is de minimus. as the indictment of three of Fleet's employees in 6. 12 U.S.C. § 1842(d). A bank holding company's home state is that state in which the operations of the bank holding company's banking subsidiaries were principally conducted on July 1, 1966, or the date it became a bank holding company, whichever date is later. 7. 1983 Conn. Acts 411, § 2; Me. Rev. Stat. Ann. tit. 9-B, § 1013 sub. 2 (as amended, February 7, 1984). 8. See Bank of New England Corporation, 72 FEDERAL RESERVE all located in Connecticut. The New London banking market includes BULLETIN 42 (1986) (Maine statute); Fleet Financial Group, Inc., 70 the New London RMA; the Windham County townships of Canter- FEDERAL RESERVE BULLETIN 834 (1984) and Bank of New England bury, Plainfield and Sterling; and the New London County townships Corporation, 70 FEDERAL RESERVE BULLETIN 374 (1984) (Connecti- of Lyme and Voluntown, all in Connecticut; and that portion of cut statute). The Maine and Connecticut interstate banking statutes Hopkinton, Rhode Island, not already included in the New London require approval by the state before an out-of-state bank holding RMA. company may acquire an in-state bank. On November 27, 1985, the 10. Under the revised Department of Justice Merger Guidelines (49 Maine Superintendent of Banking approved Fleet's acquisition of Federal Register 26,823 (1984)), a market in which the post-merger Merrill, effective December 27, 1985, and on December 31, 1985, the HHI is above 1800 is considered highly concentrated, and the Depart- Connecticut Banking Commissioner approved Fleet's acquisition of ment is likely to challenge a merger that increases the HHI by 50 FCB. points or more unless other factors of record indicate that the merger 9. The Hartford banking market includes the Hartford RMA, is not likely substantially to lessen competition. The Department has excluding the Tolland County township of Mansfield and the Wind- informed the Board that a bank merger or acquisition generally will ham County township of Windham, and including the Windham not be challenged (in the absence of other factors indicating anticom- County township of Ashford, the Hartford County township of petitive effect) unless the post-merger HHI is at least 1800 and the Hartland and the Tolland County township of Union, and the remain- merger increases the HHI by at least 200 points. ing portions of Plymouth and East Haddam not already in the RMA, 11. 31 U.S.C. § 5311, etseq.; 31 C.F.R. § 103. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 267 connection with a Rhode Island grand jury investiga- (1) appointed a vice president to serve as a mortgage tion of the Rhode Island Housing and Mortgage Fi- compliance officer for the residential mortgage denance Corporation ("RIHMFC").12 partment, assuming overall compliance responsibil- With regard to the CFTRA violations, the Board ity for that area, and assigned a vice president and notes that Fleet brought these matters to the attention associate counsel to assist in the performance of of the appropriate supervisory authorities after the these responsibilities; violations were discovered through its internal audit (2) reorganized the residential mortgage department, and has cooperated with law enforcement agencies. appointing a new department head, a new manager, Fleet has advised the Board that it has taken numer- and creating and filling two new positions of senior ous steps to prevent reoccurrence of violations of underwriter and quality control specialist; CFTRA, including the following: (3) improved procedures for documenting compli- (1) a review of all written procedures with outside ance with RIHMFC policies and requirements; counsel to check for completeness and accuracy; (4) expanded the scope of its existing internal audit (2) an extensive internal retraining for bank and program to include a compliance review of branch personnel regarding compliance with the RIHMFC and other secondary-market-mortgage- CFTRA; loan programs; (3) a review of its exempt customer list to reduce (5) instituted a policy stating that any proposed exempt amounts, remove nonexempt accounts, and waivers of RIHMFC guidelines must be discussed tighten procedures for getting names on the list; with Fleet's legal department and approved in writ- (4) a revision of its procedures for currency-transac- ing by an authorized RIHMFC official; tion reporting and deposit-account opening; (6) advised all Fleet employees that if they or their (5) the development of a computer program to assist relatives wish to obtain RIHMFC loans they must in its compliance effort—the program lists on a do so through another bank; and, printout at operations center all transactions involv- (7) repurchased 39 RIHMFC mortgages which were ing a customer (including aggregated multiple trans- processed by Fleet and determined to be improper actions) exceeding $10,000 per day; by RIHMFC officials. (6) the establishment of follow-up procedures, utilizing the loan-printout data, to check CTR-filing com- The sufficiency of the compliance procedures adoptpliance by branch personnel, and; ed to address both matters, and their efficacy in (7) improvement in thoroughness and frequency of correcting the deficiencies have been reviewed by internal audit functions, with follow-up correction of OCC examiners. The Board has also consulted with deficiencies detected by audits. appropriate enforcement agencies with respect to both matters, and has considered Fleet's past record of With respect to the RIHMFC-related indictments, compliance with the law. the senior vice president in charge of the mortgage For the foregoing reasons, and based upon a review department has been suspended and all three individ- of all of the facts of record, the Board concludes that uals are on leave from Fleet pending the outcome of the managerial resources of Fleet, FCB and Merrill are the investigation. Fleet has cooperated with the appro- consistent with approval. The Board also finds that the priate law enforcement and supervisory authorities in financial resources and future prospects of Fleet, FCB the investigation. Fleet also has attempted to assess its and Merrill are consistent with approval of the applicarelationship with RIHMFC by commissioning outside tions. counsel to conduct a thorough review of Fleet's in- The Board has considered the convenience and volvement with RIHMFC. Fleet has made the result- needs of the communities to be served. Although ing report available to investigatory authorities and Fleet, FCB and Merrill each offer their customers a submitted it to the Board in connection with these full range of banking services, consummation of this applications. proposal would enable Fleet to expand and improve Fleet has undertaken a comprehensive remedial the banking services presently offered by Fleet, FCB program to prevent similar occurrences in the future. and Merrill, through both geographic and product In this regard, Fleet has advised the Board that it has: expansion. Geographic expansion would occur with Fleet's proposed extension of Merrill's branching network into southern Maine, as well as through the 12. RIHMFC is a quasi-state agency that sells tax exempt bonds to improved access of Fleet, FCB and Merrill customers finance low-interest-rate mortgages for home buyers in low- and to banking services throughout the New England middle-income brackets. On February 19, 1985, the Attorney General region. Product expansion would occur as the customof the State of Rhode Island announced an investigation, which is still underway, of RIHMFC. ers of FCB and Merrill gain access to banking services Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
268 Federal Reserve Bulletin • April 1986 previously only available to Fleet's customers. Ac- approved. The acquisition of FCB's and Merrill's cordingly, considerations relating to the convenience subsidiary banks shall not be consummated before the and needs of the communities to be served weigh in thirtieth calendar day following the effective date of favor of approval.13 this Order and neither the banking acquisition nor the Fleet has also applied, pursuant to section 4(c)(8) of nonbanking acquisitions shall occur later than three the Act, to acquire subsidiaries (or activities) of FCB months after the effective date of this Order, unless and Merrill engaged in data processing, consumer and such period is extended for good cause by the Board or commercial finance, mortgage lending, personal prop- by the Federal Reserve Bank of Boston, acting pursuerty leasing, and credit reinsurance. This proposal ant to delegated authority. The determination with would eliminate a small amount of existing competi- respect to Fleet's acquisition of FCB's and Merrill's tion in that a nonbank subsidiary of Fleet, Fleet nonbanking activities and subsidiaries is subject to all Information, Inc. ("FII") competes with FCB in the of the conditions set forth in Regulation Y, including provision of data processing services. The relevant sections 225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) geographic market for data processing services is an and 225.23(b)), and to the Board's authority to require area with a radius of at least 100-150 miles. FII is such modifications or termination of activities of a located in Providence, Rhode Island, while FCB's holding company or any of its subsidiaries as the data processing operation is located in Hartford, Con- Board finds necessary to assure compliance with the necticut; thus, the relevant geographic market would provisions and purposes of the Act and the Board's include all of Rhode Island and Connecticut and most regulations and orders issued thereunder, or to preof Massachusetts. Within this area, there are several vent evasion thereof. hundred other providers of data processing services, By order of the Board of Governors, effective and FII and FCB have very small market shares. February 14, 1986. Accordingly, this proposal would have no significant effect on competition in any relevant market. Voting for this action: Chairman Volcker and Governors After consideration of the above and other facts of Martin, Wallich, Rice, Seger, Angell, and Johnson. record, the Board concludes that Fleet's acquisition of FCB and Merrill's nonbanking activities and subsidiar- JAMES MCAFEE ies would not significantly affect competition in any [SEAL] Associate Secretary of the Board relevant market. Furthermore, there is no evidence in the record to indicate that approval of this proposal would result in undue concentration of resources, General Bancshares Corporation unfair competition, conflicts of interests, unsound St. Louis, Missouri banking practices, or other adverse effects on the public interest. Accordingly, the Board has deter- Order Approving Applications to Merge With a Bank mined that the balance of the public interest factors it Holding Company and Acquire its Bank and must consider under section 4(c)(8) of the Act is Nonbank Subsidiaries favorable and consistent with approval of the applications to acquire FCB's and Merrill's nonbanking activ- General Bancshares Corporation ("Applicant" or ities and subsidiaries. "General"), St. Louis, Missouri, a bank holding com- Based on the foregoing and other facts of record, the pany within the meaning of the Bank Holding Compa- Board has determined that the applications under ny Act of 1956 ("Act"), 12 U.S.C. § 1841 et seq., has sections 3 and 4 of the Act should be and hereby are applied for the Board's approval under section 3(a)(5) of the Act, 12 U.S.C. § 1842(a)(5), to merge with Boatmen's Bancshares, Inc., St. Louis, Missouri, a bank holding company under the Act, and thereby indirectly acquire Boatmen's subsidiary banks. Appli- 13. In connection with these applications, the Board received protests from the Citizens' Research Education Network ("CREN"), cant also has applied under section 4(c)(8) of the Act, Citizens for Action in New Britain ("CANB"), and the Providence 12 U.S.C. § 1843(c)(8), and section 225.23 of the Human Relations Commission ("PHRC") challenging the CRA rec- Board's Regulation Y, 12 C.F.R. § 225.23, to acquire ords of two subsidiaries of FCB (United Bank and Trust ("UBT") and New Britain National Bank ("NBNB")) and of Fleet. CREN, CANB indirectly Boatmen's Life Insurance Company and PHRC withdrew their protests on January 13, and 16, and ("Boatmen's Life"), St. Louis, Missouri, and Missou- February 11, 1986, respectively, following meetings with UBT, NBNB and Fleet, acceptance of specific undertakings by these ri Mortgage and Investment Company ("Missouri banking organizations designed to meet the concerns expressed by the Mortgage"), St. Louis, Missouri. Boatmen's Life uncommunity groups, and assurances by Fleet that the convenience and derwrites credit life, credit accident and credit health needs of low- and moderate-income and minority persons will be served by the institution resulting from this transaction. insurance. Missouri Mortgage makes, acquires and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 269 services mortgage loans for its own account and for Inc. The board of directors of the resulting corporation the account of others. would be comprised of 25 members: all 20 of Boat- Notice of the applications, affording an opportunity men's present directors and five of General's 13 forfor interested persons to submit comments, has been mer directors. The individual who is the current chairgiven in accordance with sections 3 and 4 of the Act, man and chief executive officer of General will retire, 50 Federal Register 38,715 (1985). The time for filing and he will be replaced by individuals who are currentcomments has expired, and the Board has considered ly the respective chairman of the board and president the applications and all comments received in light of of Boatmen's. General also will replace its corporate the factors set forth in section 3(c) of the Act, by-laws with those of Boatmen's. Finally, the current 12 U.S.C. § 1842(c), and the considerations specified shareholders of General will receive a premium for in section 4(c)(8) of the Act, 12 U.S.C. § 1843(c)(8). their shares of General; the shareholders of Boatmen's General, with consolidated assets of $2.1 billion1 will receive no premium. and total deposits of $1.7 billion,2 controls two banks The issue raised by this case is whether, for purin Missouri, nine banks in Illinois, and one bank in poses of applying the Douglas Amendment, the trans- Tennessee. General is permitted under the Bank Hold- action, although structured as the acquisition by Gening Company Act to retain its banks in Illinois and eral of Boatmen's, is in substance the acquisition by Tennessee because they were acquired by General Boatmen's—the much larger organization—of General prior to the enactment of the Douglas Amendment and and, if so, whether Board approval for the transaction are thus grandfathered for General. Moreover, legisla- would be barred by the Douglas Amendment because tion in Illinois and Tennessee permits General to retain the proposal involves the acquisition by Boatmen's of its banks in those states and to acquire other banks banks outside of Missouri, Boatmen's home state. based upon the fact that General has owned banks in The Douglas Amendment generally prohibits Board those states for many years. approval of an application by a bank holding company Boatmen's, with consolidated assets of $7.1 billion3 to acquire a bank located outside the holding compaand total deposits of $4.6 billion,4 is the largest com- ny's home state,6 unless the state where the target mercial banking organization in Missouri. Boatmen's bank is located has specifically authorized the acquisiis three times larger than General in terms of assets tion.7 The home state for both Boatmen's and General and almost three times as large in terms of deposits. is Missouri. As a result, the Douglas Amendment Boatmen's controls 39 banks, all located in Missouri. would not prohibit General from acquiring each of The proposed General/Boatmen's merger is struc- Boatmen's 39 subsidiary banks, which are located in tured as a merger of Boatmen's into General. Upon General's home state of Missouri. Similarly, the Dougconsummation, General will be the surviving company las Amendment would not bar Boatmen's acquisition and Boatmen's would cease to exist.5 To effect the of General's two subsidiary banks in Missouri. The merger, the outstanding shares of Boatmen's stock Douglas Amendment would, however, bar Board apwould be converted into shares of the resulting corpo- proval of Boatmen's acquisition of banks in Illinois ration. General's outstanding shares will also be con- and Tennessee (because these banks are outside of verted into new shares of the surviving corporation. Boatmen's home state) unless Illinois and Tennessee The present shareholders of General would receive have consented specifically and by statute to the approximately 30 percent of the shares of the resulting acquisition. corporation while the present shareholders of Boatmen's would receive approximately 70 percent of the shares of the resulting corporation. The name of General would be changed to Boatmen's Bancshares, 6. A bank holding company s home state for purposes of the Douglas Amendment is that state in which the total deposits of its 1. As of September 30, 1985. banking subsidiaries was largest on July 1, 1966, or on the date it 2. As of September 30, 1985. became a bank holding company, whichever date is later. 12 U.S.C. 3. As of December 31, 1985. § 1842(d). 4. As of September 30, 1985. 7. The Douglas Amendment provides: 5. Specifically, the merger will be effected by converting each share Notwithstanding any other provision of this section, no application . . . shall of Boatmen's common and preferred stock into a share of the common be approved under this section which will permit any bank holding company and preferred stock of the surviving corporation. Each share of or any subsidiary thereof to acquire, directly or indirectly, any voting shares General's preferred stock will be converted into one share of preferred of, interest in, or all or substantially all of the assets of any additional bank located outside of the [holding company's home] State . . . unless the stock of the surviving corporation. Each share of General's common acquisition of such shares or assets of a State bank by an out-of-State bank stock will be converted into between 1.75 to 2.0 shares of the common holding company is specifically authorized by statute laws of the State in stock of the resulting corporation. The exchange ratio is based upon which such bank is located, by language to that effect and not merely by the average value of Boatmen's common stock for a period beginning implication. 20 days prior to the third day before the transaction closes. 12 U.S.C. § 1842(d). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
270 Federal Reserve Bulletin • April 1986 It appears that in light of the requirements of the a bank holding company to assume the corporate Douglas Amendment and in order to preserve Gener- identity of another bank holding company as a means al's grandfather rights to maintain ownership of banks to expand its banking operations into other states in Illinois and Tennessee as well as Missouri, the without the specific authorization of the states as proposed transaction has been structured as the acqui- required by the Douglas Amendment. sition by General of Boatmen's rather than as a direct The Seattle decision stands for the proposition that acquisition by Boatmen's of General. where the facts show clearly that a bank holding Applicant contends that because the transaction is company merger has been arranged to evade the structured as an acquisition by General of Boat- Douglas Amendment and that the purported acquiree men's—all of whose subsidiary banks are in General's organization is in fact the acquiror, the Board will look home state of Missouri and thus eligible for acquisition to the substance of the proposal in order to give effect by General—the proposed transaction is not prohibit- to the mandate of the Douglas Amendment that the ed by the literal terms of the Douglas Amendment. In individual states should control their banking structure other words, Applicant argues that the Board should and must affirmatively consent by statute to bank look only to the form of the transaction as structured acquisitions by out-of-state bank holding companies. by the parties. The facts in this case are in many ways similar to In 1984, the Board considered and rejected a similar those in the Seattle case. As noted, Boatmen's has contention in Seattle Bancorporation.8 There, the about three times the deposits and assets of General; Board concluded that where the form of a merger of General, the surviving corporation will issue new bank holding companies disguised an attempt to evade shares to its own shareholders as well as those of the the Douglas Amendment, the Board would look ostensible acquired organization; the shareholders of through the form of the transaction to its substance in General will own only 30 percent of the resulting order to give effect to the purpose of the Act to corporation and will receive a premium for their maintain state control over the acquisition of banks in shares; the board of directors of the survivor will be the state by out-of-state bank holding companies. In made up predominately of Boatmen's directors; the that case, Seattle Bancorp, a Washington bank holding chief executive of General will be replaced by Boatcompany with $45 million in assets, applied to acquire men's executives; and General's name and corporate by a so-called "reverse triangular merger" Alaska by-laws will be replaced with those of Boatmen's. In Pacific Bancorp, an Alaskan bank holding company sum, the corporate identity of General will be replaced with $410 million in assets. As in this case, the pre- by that of Boatmen's in every material respect.9 merger shareholders of the larger Alaska Pacific would The Board notes, however, that—unlike the situacontrol the overwhelming majority of the resulting tion in Seattle—both Illinois and Tennessee have organization's shares; the surviving organization's di- enacted statutes that by their express terms permit rectors and senior management would be made up out-of-state bank holding companies that owned banks predominately of Alaska Pacific personnel; and the in the state before a given date to retain ownership of Seattle Bancorp shareholders would receive a premi- those banks and to expand by the acquisition of um for their shares. additional banks in Illinois and by merger in Tennes- At that time, Alaska by statute permitted the acqui- see.10 It appears that these statutes are intended to sition of banks in that state by any out-of-state bank provide grandfather rights to General to continue to holding company, while Washington had not autho- operate in those states based upon its longstanding rized out-of-state bank holding companies to acquire presence in the states. Washington banks. Thus, approval of the application Moreover, the banking commissioners of both Illiwas permitted by the Douglas Amendment if Seattle nois and Tennessee have advised the Board that the Bancorp was the acquiror, but was barred if Alaska proposed transaction does not conflict with the laws of Pacific was the acquiror. The Washington Banking those states. The Illinois Banking Commissioner has Commissioner urged the Board to deny the acquisition as barred by the Douglas Amendment. The Board concluded that Alaska Pacific was the actual acquiror—despite the form of the transaction— and that the transaction was therefore barred by the 9. If the merger were viewed as the creation of a new bank holding Douglas Amendment. The Board was concerned that company, the Douglas Amendment would bar Board approval beapproval of the proposed "reverse merger" transac- cause of the absence of the required statutory consent by the states of Illinois and Tennessee. See SunTrust Banks, Inc., 71 FEDERAL tion would create a substantial precedent for allowing RESERVE BULLETIN 176 (1985); Credit and Commerce American Holdings, N.V., 65 FEDERAL RESERVE BULLETIN 254 (1979). 10. 111. Sen. Bill No. 525 (to be codified at 111. Rev. Stat. ch. 17, 8. 70 FEDERAL RESERVE BULLETIN 667 (1984). 11 2510, § 3.07(a)(2)); Tenn. Code Ann. § 45-12-105(d) (Supp. 1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 271 advised the Board that General, as the survivor of the not authorized in any manner by Washington law.12 In General/Boatmen's merger, would be authorized to this case, there is no shift in home state and importantretain and acquire banks in Illinois and that the merger ly, unlike the situation in Seattle, no additional out-ofwould not jeopardize General's unique existing fran- state bank holding company would enter Illinois or chise in Illinois.11 Tennessee and the existing multi-state bank holding These provisions of Illinois and Tennessee law company would not expand into additional states. suggest, along with other facts of record, that the On the basis of the foregoing considerations, relatproposal is not inconsistent with the purpose of the ing to the consistency of the proposal with the Douglas Douglas Amendment to maintain state control over Amendment, the Board has determined that it is not banking structure with respect to entry by out-of-state required, and that it would not be appropriate, to look bank holding companies. In this case, the merger will beyond the form of the transaction in this case in order not change the existing banking structure in Illinois to give effect to the rights granted by the Douglas and Tennessee, and thus the interests of Illinois and Amendment to the individual states to control entry by Tennessee to control their banking structures are not out-of-state bank holding companies.13 Accordingly, impaired by the proposal. Both states have clearly and the Board has determined to treat General as the unequivocally authorized a Missouri bank holding surviving corporation, and on this basis concludes that company to acquire additional banks—a factor that the approval of the proposal is not barred by the Douglas Board views as critical to its decision in this case. As Amendment. far as either state is concerned, there continues to be The Board's reliance in this case on the purpose of only a single Missouri bank holding company that is the Douglas Amendment is consistent with the authorized to operate in these states and that Missouri Board's decision in Credit and Commerce American bank holding company has no greater rights after the Holdings, N. V.'4 There, the Board approved applicamerger than before the merger. The only difference is tions by two shell companies to acquire an existing that the survivor is a larger organization with more multi-state bank holding company that, like General, subsidiary banks in Missouri—a fact situation that has was authorized by the Douglas Amendment to retain no relevance to Illinois and Tennessee under the banks outside of its home state. The Board stated that Douglas Amendment. Under the Douglas Amendapproval for the acquisition was consistent with the ment, as well as Illinois and Tennessee law, there is no purpose of the Douglas Amendment of preventing the limit on the size or the number of banks that the formation of additional multi-state bank holding comgrandfathered Missouri bank holding company may panies and limiting their expansion without state apown or acquire in its home state of Missouri. proval, noting that no new multi-state bank holding On the basis of these considerations, the Board company was created and no additional banks were believes that the present proposal is distinguishable added to the grandfathered system. In other words, as from the Seattle case. The Seattle case involved a in the case here, no additional out-of-state bank holdproposal that clearly impaired state authority in con- ing company would be entering any state without state travention of the purpose of the Douglas Amendment. authority. In Seattle, an Alaska bank holding company attempted In addition to its evaluation of the application under to shift its home state from Alaska to Washington in the Douglas Amendment, the Board is required to order to acquire banks in Washington, a transaction consider the competitive, financial, managerial and convenience and needs effects of the proposal. General is the tenth largest commercial banking organization in Missouri, controlling 1.6 percent of the total depos- 11. While these provisions of Illinois and Tennessee law clearly authorize General to retain its banks in those states, they do not its in commercial banks in that state.15 Boatmen's is provide the express statutory authorization required by the Douglas Amendment for Boatmen's to acquire these banks. Under the Douglas Amendment, the state consent required for entry by an out-of-state bank holding company must be by statute "by language to that effect and not merely by implication." The Illinois and Tennessee statutes 12. As the Board noted in Seattle, the legislative history of the do not by their terms authorize Boatmen's, or any Missouri bank Douglas Amendment indicates that the home state test in the Act was holding company other than General, to acquire or retain banks in intended to ensure that a bank holding company could not avoid the those states. Similarly, because of the requirement of the Douglas Douglas Amendment by shifting its home state. Senate Committee on Amendment for specific state statutory authorization, the expressions Banking and Currency, 89th Cong., 1st Sess., Amendments to the of opinion by the Illinois and Tennessee banking authorities as to the Bank Holding Company Act of 1956; Analyses of S.2353, S.2418, and permissibility of the merger are not conclusive. See First Bank H.R.7371 and Comparative Print Showing Changes in Existing Law, System, Inc., 70 FEDERAL RESERVE BULLETIN 771 (1984). As the 11-12 (1965). Board has previously noted, the requirement of the Douglas Amend- 13. In the absence of a finding of evasion of the Act, the Board need ment for specific state statutory authorization reflects Congressional not exercise its discretion under section 5(b) of the Act. See Seattle concern that "the states make a deliberate and express decision with Bancorporation, 70 FEDERAL RESERVE BULLETIN 667, 669 n.10. respect to interstate banking." Bank of New York Company, Inc., 70 14. 65 FEDERAL RESERVE BULLETIN 254 (1979). FEDERAL RESERVE BULLETIN 527, 528 (1984). 15. As of December 31, 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
272 Federal Reserve Bulletin • April 1986 the largest commercial banking organization in Mis- all of the facts of record, the Board concludes that souri, controlling 13.7 percent of the total deposits in consummation of the proposal would not have a commercial banks in Missouri. significant adverse effect on existing competition in Upon consummation of the proposal, Applicant the St. Louis banking market or in any other relevant would control 15.3 percent of total deposits in com- market. mercial banks in Missouri. In light of the fact that The Board has also considered the effect of this Missouri is relatively unconcentrated in terms of bank- proposal upon probable future competition. There are ing deposits, and the small increase in the level of 19 banking markets in Missouri in which Boatmen's concentration resulting from the merger, the Board competes, but in which Applicant has no presence. concludes that consummation of the proposal would Based upon the number of potential entrants into these not have a significant adverse effect on the concentra- markets, the concentration levels in the markets and tion of banking resources in Missouri. Consummation other facts of record, the Board concludes that conof the proposal would not have a significant adverse summation of the proposal would not have any signifieffect on the concentration of banking resources in cant adverse effects upon probable future competition Illinois and Tennessee because Boatmen's does not in these or any other banking market in Missouri. control any banking subsidiaries in those states. There are six markets in Illinois and three markets in Applicant and Boatmen's compete in the St. Louis Tennessee in which Applicant operates, but in which banking market.16 Applicant is the sixth largest of 60 Boatmen's has no presence. Consummation of the commercial banking organizations in the market. It proposal would not have any adverse effect on probable future competition in these banking markets becontrols total deposits of $754.9 million, which reprecause Boatmen's is not a potential entrant therein, in sents 4.5 percent of the total deposits in commercial banks in the market.17 Boatmen's is the third largest view of the interstate banking limitations of the Douglas Amendment. commercial banking organization in the St. Louis banking market. It controls total deposits of $2.2 The financial and managerial resources of Applibillion, which represents 13.1 percent of the total cant, Boatmen's and their subsidiary banks are satisdeposits in commercial banks in the market. Upon factory and consistent with approval of the applicaconsummation of the proposal, Applicant would be- tions. Considerations related to the convenience and come the second largest banking organization in the needs of the community to be served also are consismarket, controlling approximately 17.6 percent of the tent with approval.20 total deposits in commercial banks in the market. The Applicant also has applied under section 4(c)(8) of St. Louis banking market is relatively unconcentrated, the Act to acquire Boatmen's Life and Missouri Mortwith the four largest commercial banking organiza- gage. Boatmen's Life acts as a reinsurance underwrittions in the market controlling 55.1 percent of deposits er with respect to life, accident and health insurance in banks in the market. This percentage would in- extended in connection with extensions of credit by crease to 59.6 upon consummation of the proposal, Boatmen's subsidiary banks. Missouri Mortgage and the Herfindahl-Hirschman Index ("HHI") would makes, acquires or services mortgage loans for its own increase by 118 points, from 879 to 997.18 Upon account and for the account of others. The Board has consummation of the proposal, 59 commercial banking previously determined that these activities are closely organizations would continue to operate in the St. related to banking and permissible for bank holding Louis banking market. Moreover, the Board notes that companies. 12 C.F.R. §§ 225.25(b)(1) and (9). there are 47 thrifts operating in the market, which Consummation of this proposal will not result in any control 37.1 percent of the total deposits in depository adverse effects. With respect to existing competition, institutions in the market.19 Based upon the above and Applicant does not underwrite credit life and disability RESERVE BULLETIN 154 (1986); NCNB Corporation, Inc., 70 FEDER- 16. The St. Louis banking market is approximated by the St. Louis AL RESERVE BULLETIN 225 (1984). If 50 percent of the deposits held Ranally Metro Area, adjusted to include all of St. Charles and by thrift institutions were included in the calculation of market Jefferson Counties, Missouri, and all of Lebanon and Mascoutah concentration for the St. Louis banking market, the HHI would Townships in St. Clair County, Illinois. increase by 71 points from 576 to 647. The percentage of deposits held 17. As of December 31, 1984, and reflecting known mergers and by the four largest firms in the market would increase from 42.5 to holding company acquisitions approved as of August 31, 1985. 46.0. 18. Under the revised Department of Justice Merger Guidelines, 49 20. In connection with these applications, the Board received a Federal Register 26,823 (June 29, 1984), any market in which the post- protest from the Association of Community Organizations for Reform merger HHI is below 1000 is considered to be unconcentrated. The Now ("ACORN") challenging the Community Reinvestment Act Justice Department is not likely to challenge such a merger except in records of the subsidiary banks of Boatmen's. ACORN withdrew its extraordinary circumstances. protest, following meetings with representatives of Boatmen's and 19. The Board has previously determined that thrift institutions Applicant, and its acceptance of specific undertakings by these have become, or at least have the potential to become, major banking organizations designed to meet the concerns expressed by competitors of banks. E.g., Louisiana Bancshares, Inc., 72 FEDERAL this community group. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 273 insurance. Moreover, Applicant does not engage di- Dissenting Statement of Governor Angell rectly in any mortgage banking activities. One of Applicant's banking subsidiaries in the St. Louis bank- I dissent from the Board's action in this case. I believe ing market has previously originated and serviced that Board approval of the proposal is barred by the loans for third party investors, but did not originate Douglas Amendment to the Bank Holding Company any such mortgage loans in the St. Louis banking Act. market during 1984. Accordingly, consummation of The Douglas Amendment represents a clear Conthe proposal would not eliminate any existing competi- gressional reservation to the individual states of the tion in any relevant market. There is no evidence in right to control acquisitions of banks within their the record that consummation of the proposal would borders by out-of-state bank holding companies. That result in other adverse effects, such as unsound bank- reservation is expressed in the directive that the Board ing practices, unfair competition, conflicts of interest, not approve interstate banking acquisitions unless or an undue concentration of resources. they are specifically authorized by the state in which Consummation of the proposal may be expected to the bank to be acquired is located by statute "by result in public benefits since the rates for credit- language to that effect and not merely by implication." related insurance sold by Applicant's present subsid- 12 U.S.C. § 1842(d). The Board has stated that this iary banks will be reduced. Applicant's acquisition of requirement for specific state statutory authorization Missouri Mortgage will provide a convenient source of reflects Congressional concern that "the states make a mortgage banking services to Applicant's customers deliberate and express decision with respect to interand would continue as a source to Boatmen's custom- state banking." Bank of New York Company, Inc., 70 ers. Accordingly, the Board has determined that the FEDERAL RESERVE BULLETIN 527, 528 (1984). balance of public interest factors it must consider I agree with the conclusion of the majority of the under section 4(c)(8) of the Act is favorable and Board that the facts of this case are similar to those in consistent with approval of the applications by Appli- the Seattle case. In my view, they demonstrate that, in cant to acquire Boatmen's Life and Missouri Mort- substance, Boatmen's is acquiring General. Thus, gage. under the terms of the Douglas Amendment and the Based upon the foregoing and other facts of record, Board's Seattle precedent, Board approval of the the Board has determined that the applications under proposal is barred without the requisite statutory sections 3 and 4 of the Act should be, and hereby are, authorization by Illinois and Tennessee. As the majorapproved. The proposal shall not be consummated ity recognizes, the provisions of Illinois and Tennessee before the thirtieth calendar day following the effective law and the opinions of the banking commissioners of date of this Order or later than three months after the Illinois and Tennessee with regard to the consistency effective date of this Order, unless such period is of the proposal with these statutes do not satisfy the extended for good cause by the Board or by the requirement of the Douglas Amendment for an express Federal Reserve Bank of St. Louis, pursuant to dele- statutory authorization by language to that effect and gated authority. The determination as to Applicant's not merely by implication. nonbanking activities is subject to the conditions set In my view, the clearest expression of the policies of forth in sections 225.4(d) and 225.23(b)(3) of Regula- the States of Illinois and Tennessee with regard to this tion Y, 12 C.F.R. §§ 225.4(d) and 225.23(b)(3), and the transaction is reflected in the regional reciprocal legis- Board's authority to require such modification or lation recently adopted by each state. Under those termination of the activities of a holding company or statutes the acquisition of a bank in those states by a any of its subsidiaries as the Board finds necessary to Missouri bank holding company (other than General) assure compliance with the provisions and purposes of is prohibited unless the State of Missouri provides the Act and the Board's regulations and orders issued reciprocal treatment for the acquisition of banks in thereunder, or to prevent evasion thereof. Missouri by Illinois and Tennessee bank holding com- By order of the Board of Governors, effective panies. Missouri has not adopted such reciprocal February 27, 1986. legislation, and thus under the terms of the Illinois and Tennessee statutes, Boatmen's may not acquire banks Voting for this action: Vice Chairman Martin and Gover- in these states. nors Wallich, Rice, Seger, and Johnson. Voting against this For these reasons, I would deny the applications. action: Governor Angell. Governor Wallich abstained from the insurance portion of this action. Absent and not voting: Chairman Volcker. WILLIAM W. WILES [SEAL] Secretary of the Board February 27, 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
274 Federal Reserve Bulletin • April 1986 Hartford National Corporation billion, controls three banking subsidiaries: Connecti- Hartford, Connecticut cut National Bank, Hartford, Connecticut ("CNB") (deposits of $4.9 billion); The Seymour Trust Compa- Order Approving Acquisition of a Bank and ny, Seymour, Connecticut ("Seymour") (deposits of Nonbank Subsidiary and Engaging De Novo in $68.8 million); and Arlington Trust Company, Law- Insurance Activities rence, Massachusetts ("Arlington") (deposits of $922.6 million).3 Hartford seeks to acquire Provident,4 Hartford National Corporation, Hartford, Connecti- which is the 11th largest depository institution in cut, a bank holding company within the meaning of the Massachusetts, controlling deposits of approximately Bank Holding Company Act ("Act") (12 U.S.C. $942.5 million, representing approximately 1.3 percent § 1841 et seq.), has applied for the Board's approval of total deposits in depository institutions in the state. under section 3(a)(3) of the Act (12 U.S.C. Upon consummation of this proposal, Hartford § 1842(a)(3)) to acquire The Provident Institution for would remain the second largest commercial banking Savings in the Town of Boston, Boston, Massachu- organization in Connecticut and would become the setts ("Provident"), a state-chartered stock savings sixth largest depository institution in Massachusetts, bank which is insured by the Federal Deposit Insur- controlling approximately 2.5 percent of total deposits ance Corporation.1 in depository institutions in Massachusetts. Consum- Hartford also has applied for the Board's approval mation of this proposal would not result in a significant under section 4(c)(8) of the Act (12 U.S.C. increase in the concentration of banking resources in § 1843(c)(8)) and section 225.23(a)(2) of the Board's Connecticut or Massachusetts. Regulation Y, to indirectly acquire Provident's non- Section 3(d) of the Act (12 U.S.C. § 1842(d)), the banking subsidiary, Provident Financial Services, Douglas Amendment, prohibits the Board from ap- Inc., Boston, Massachusetts ("PFSI"), a company proving an application by a bank holding company to engaged in residential mortgage banking activities, and acquire control of any bank located outside of the to engage de novo, through PFSI, in acting as insur- bank's home state, unless such acquisition is "specifiance agent or broker with respect to insurance directly cally authorized by the statute laws of the state in related to extensions of credit by Hartford's subsidiary which such bank is located, by language to that effect banks.2 These activities have been determined by the and not merely by implication."5 The Board has Board to be closely related to banking and permissible previously determined, based upon its review of the for bank holding companies, 12 C.F.R. §§ 225.25(b)(1) Massachusetts and Connecticut interstate banking and (8)(i). statutes,6 that Massachusetts has by statute expressly Notice of these applications, affording an opportuni- authorized, within the meaning of the Douglas Amendty for interested persons to submit comments, has ment, a Connecticut bank holding company, such as been given in accordance with sections 3 and 4 of the Hartford, to acquire a bank located in Massachusetts. Act (51 Federal Register 66 (January 2, 1986)). The Hartford and Provident both compete in the Boston time for filing comments has expired and the Board banking market,7 the largest and least concentrated of has considered the applications and all comments the banking markets in Massachusetts, with the four received in light of the factors set forth in section 3(c) (12 U.S.C. § 1842(c)) and the considerations specified in section 4(c)(8) (12 U.S.C. § 1843(c)(8)) of the Act. Hartford, the second largest commercial banking organization in Connecticut, with total deposits of $5.9 3. State deposit data are as of September 30, 1985. All market deposit data are as of June 30, 1984. 4. In connection with this application, Hartford has committed to 1. The Board has previously determined that state-chartered stock divest its interests in Provident's direct and indirect subsidiaries, savings banks, which are not covered by the exemption created by the Provident Capital Corporation, and George K. Darling & Associates, Garn-St Germain Depository Institutions Deregulation Act of 1982 for Inc., respectively, within two years of consummation. thrift institutions insured by the Federal Savings and Loan Insurance 5. 12 U.S.C. § 1842(d). A bank holding company's home state is Corporation ("FSLIC"), and which accept demand deposits and that state in which the operations of the bank holding company's engage in the business of making commercial loans, are within the banking subsidiaries were principally conducted on July 1, 1966, or definition of "bank" contained in section 2(c) of the Act. Provident the date it became a bank holding company, whichever date is later. accepts demand deposits and NOW accounts and engages in the 6. Mass. Ann. Laws Ch. 167A, § 2; 1983 Conn. Acts 411, § 2; business of making commercial loans and its deposits are not insured Hartford National Corporation, 70 FEDERAL RESERVE BULLETIN 353 by FSLIC. Accordingly, Provident is a "bank" for purposes of the (1984). Act. The application has therefore been considered in light of the 7. The Boston banking market consists of the Boston RMA, minus requirements of section 3 of the Act pertaining to the acquisition of the New Hampshire towns of Brentwood, Chester and Derry, plus the banks. Massachusetts towns of Ayre, Berlin, Groton, Harvard, Pepperell, 2. Hartford requests permission to conduct PFSI's mortgage bank- and Shirley, and those portions of Bellingham, Carver, Lakeville, ing and insurance activities nationwide. Middleborough aH Plymouth not already included in the RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 275 largest banking organizations controlling 32.6 percent transactions that, alone or in the aggregate, exceed of the total deposits in depository institutions in the $10,000; market. Applicant is the 10th largest of 260 banking (4) updated exempt lists to include all eligible cusorganizations in the Boston banking market, control- tomers and reviewed exemption levels to determine ling 1.6 percent of total deposits in depository institu- whether appropriate; tions in the market. Provident is the ninth largest (5) reviewed and revised operating procedures and depository institution in the Boston banking market, policies; controlling 1.8 percent of total deposits in depository (6) implemented branch and cash vault currency institutions in the market. Upon consummation of this logs; proposal, Hartford would become the sixth largest (7) conducted periodic on-site audits to review polibanking organization in the Boston banking market, cy, procedure and reporting compliance; controlling 3.4 percent of total deposits in depository (8) instituted a program of unannounced spot checks institutions in the market. The Herfindahl-Hirschman of compliance; and Index is 362 and would increase by 6 points to 368 (9) established a permanent staff training program in upon consummation of this proposal. In view of the CFTRA compliance. small amount of existing competition that would be eliminated as a result of this proposal, consummation Hartford has also instituted similar measures at of this proposal would not have a significant effect on Arlington and Seymour. Moreover, Hartford has comexisting competition in this market. mitted that within 90 days of consummation of the The Board has also examined the effect of the transaction, it will review the compliance procedures proposed acquisition upon probable future competi- at Provident and adopt and implement compliance tion in the banking markets in which either Applicant measures at Provident similar to those at CNB. or Bank, but not both, now compete. In view of the With respect to the indictment of a former branch fact that there are numerous potential entrants from manager, Hartford promptly conducted an internal the New England region into each of these markets, investigation after it became aware of the situation the Board has concluded that consummation of this through an investigation conducted by law enforceproposal would not have any significant adverse ef- ment authorities. Following completion of its investifects on probable future competition in any relevant gation, Hartford terminated the employment of this market. Competitive considerations are therefore con- individual. Hartford has cooperated with appropriate sistent with approval of this application. law enforcement and supervisory authorities in both In its evaluation of Hartford's managerial resources, investigations. the Board has considered certain violations by Hart- The sufficiency of the compliance procedures adoptford of the Currency and Foreign Transactions Report- ed to address Hartford's subsidiary banks' CFTRA ing Act ("CFTRA") and the regulations thereunder,8 violations have been reviewed by examiners from the as well as the indictment of Hartford's former branch Office of the Comptroller of the Currency and the manager on criminal charges. With regard to the Federal Deposit Insurance Corporation. The Board CFTRA violations, the Board notes that Hartford also has consulted with appropriate enforcement agenbrought these matters to the attention of the appropri- cies, and has considered Hartford's past record of ate supervisory authorities after the violations were compliance with the law. discovered through its internal audit and has cooperat- For the foregoing reasons, and based upon a review ed with law enforcement agencies. of all of the facts of record, the Board concludes that Hartford has undertaken a comprehensive remedial the managerial resources of Hartford and Provident program to prevent similar occurrences in the future. are consistent with approval, particularly in light of In this regard, Hartford has advised the Board that certain commitments made by Hartford, including CNB has: Hartford's commitment to improve the compliance (1) centralized overall responsibility for compliance procedures at Provident, in connection with this applireview and management of exempt lists; cation. The Board also finds that the financial re- (2) designated the senior vice president/bank opera- sources and future prospects of Hartford and Provitions as compliance review officer for CTR report- dent are consistent with approval of the application. ing; The convenience and needs considerations also are (3) instituted an automated data base to centralize consistent with approval of the transaction. control over exempt lists and to track customer cash Hartford also has applied, pursuant to section 4(c)(8) of the Act, to acquire PFSI, a subsidiary of Provident. PFSI currently engages in residential mort- 8. 31 U.S.C. § 5311, et seq.\31 C.F.R. § 103. gage banking activities, and Hartford intends to en- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
276 Federal Reserve Bulletin • April 1986 gage de novo, through PFSI, in acting as insurance ("Act"), has applied for the Board's approval under agent or broker with respect to insurance directly sections 3(a)(3) and 3(a)(5) of the Act (12 U.S.C. related to extensions of credit by Hartford's subsidiary §§ 1842(a)(3), 1842(a)(5)) for the merger of Suburban banks. Due to the small size of PFSI, it does not Bancorp, Bethesda, Maryland ("Suburban") with and appear that Hartford's acquisition would result in any into Applicant. As a result of the acquisition, Appliadverse competitive effects in any relevant market. cant would acquire indirectly Suburban's subsidiary Furthermore, there is no evidence in the record to bank, Suburban Bank, Bethesda, Maryland. Applicant indicate that approval of this proposal would result in also has applied for the Board's approval to acquire undue concentration of resources, decreased or unfair Suburban Bank/Delaware, Dover, Delaware, a prescompetition, conflicts of interest, unsound banking ently wholly owned subsidiary of Suburban Bank practices or other adverse effects on the public inter- engaged in credit card operations and related consumest. Accordingly, the Board has determined that the er lending. balance of public interest factors it must consider Applicant also has applied for the Board's approval under section 4(c)(8) of the Act is favorable and under section 4(c)(8) of the Act (12 U.S.C. consistent with approval of this transaction. § 1843(c)(8)) and section 225.23 of the Board's Regula- Based on the foregoing and other facts of record, the tion Y (12 C.F.R. § 225.23) to acquire Suburban's Board has determined that the applications under nonbanking subsidiary, Suburban Funding Corporasections 3 and 4 of the Act should be and hereby are tion, Bethesda, Maryland ("Suburban Funding"), a approved. The transactions shall not be consummated company that engages for its own account and for that before the thirtieth calendar day following the effective of others in making, acquiring, or servicing loans of date of this Order or later than three months after the the kind that would be made by commercial finance effective date of this Order, unless such period is companies; leasing real and personal property; and extended for good cause by the Board or by the arranging, structuring, and analyzing the financing of Federal Reserve Bank of Boston, acting pursuant to equipment leasing. These activities have been deterdelegated authority. The approval of Hartford's acqui- mined by the Board to be closely related to banking sition of PFSI is subject to the conditions set forth in and permissible for bank holding companies, section 225.23(b) of Regulation Y (12 C.F.R. 12 C.F.R. §§ 225.25(b)(1) and (5). § 225.23(b)) and to the Board's authority to require Notice of the applications, affording an opportunity modification or termination of the activities of a hold- for interested persons to submit comments and views, ing company or any of its subsidiaries as the Board has been given in accordance with sections 3 and 4 of finds necessary to assure compliance with the provi- the Act (50 Federal Register 49,613, 49,615 (1985); 51 sions and purposes of the Act and the Board's regula- Federal Register 3424 (1986)). The time for filing tions and orders issued thereunder, or to prevent comments and views has expired, and the Board has evasion thereof. considered the applications and all comments received By order of the Board of Governors, effective in light of the factors set forth in section 3(c) of the Act February 27, 1986. and the considerations specified in section 4(c)(8) of the Act. Voting for this action: Vice Chairman Martin and Gover- The Board received protests concerning this applinors Wallich, Rice, Seger, Angell, and Johnson. Governor cation from the Independent Insurance Agents of Wallich abstained from the insurance portion of this action. America, Inc., the National Association of Casualty Absent and not voting: Chairman Volcker. and Surety Agents, and the National Association of Surety Bond Producers, and the National Association WILLIAM W. WILES of Life Underwriters, National Association of Profes- [SEAL] Secretary of the Board sional Insurance Agents, Maryland State Association of Life Underwriters, and PI A Association of Pennsylvania, Maryland and Delaware, Inc. ("Protestants"). Sovran Financial Corporation Protestants allege that Applicant is required to file an Norfolk, Virginia application pursuant to section 4(c)(8) of the Act for the acquisition of Suburban Insurance, Inc., a wholly Order Approving Acquisition of and Merger with a owned subsidiary of Suburban Bank that engages in Bank Holding Company general insurance activities. Under the Garn-St Germain Depository Institutions Act of 1982 ("Garn-St Sovran Financial Corporation, Norfolk, Virginia, a Germain Act"), which amended section 4(c)(8) of the bank holding company within the meaning of the Bank BHC Act to provide that, subject to certain excep- Holding Company Act (12 U.S.C. §§ 1841 et seq.) tions, general insurance agency activities are not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 277 closely related to banking, Board approval of such an Section 3(d) of the Act (12 U.S.C. § 1842(d)), proapplication would be barred. Protestants contend that hibits the Board from approving an application by a the ownership by Suburban Bank of shares of Subur- bank holding company to acquire control of any bank ban Insurance, Inc. is not permitted by section located outside of the holding company's home state3 225.22(d)(2) of the Board's Regulation Y, 12 C.F.R. unless such acquisition is "specifically authorized by § 225.22(d)(2), which authorizes a state bank subsid- the statute laws of the state in which such bank is iary of a bank holding company to establish a wholly located, by language to that effect and not merely by owned subsidiary that engages solely in activities in implication." which the parent bank may engage, because Bank is The Board has previously determined, based on its not permitted under Maryland law to engage in the review of the relevant statute laws of Maryland and general insurance agency business. Finally, Protes- Virginia4 that the Virginia statute satisfies the conditants contend that, in any event, section 225.22(d)(2) tions of the Maryland regional interstate banking statof the Board's Regulation Y is invalid to the extent ute and that Maryland by statute has expressly authothat it permits a bank holding company to engage, rized a Virginia bank holding company, such as through its subsidiary banks, in insurance activities Applicant, to acquire a Maryland bank or bank holding not permitted for bank holding companies under sec- company, such as Suburban. Bank of Virginia Compation 4(c)(8) of the Act as amended by the Garn-St ny, 72 FEDERAL RESERVE BULLETIN 65 (1986). The Germain Act. Maryland Commissioner of Banking has advised the Both Protestants and Applicant have submitted nu- Board that the Virginia statute satisfies the reciprocity merous comments concerning these issues, which the requirements of the Maryland interstate banking pro- Board has under consideration. Applicant has request- visions. In addition, the Board has determined that the ed, however, that the Board not delay consideration of acquisition of Suburban Bank/Delaware conforms to Applicant's application to acquire Bank pending the Delaware law and is specifically authorized by the resolution of these issues concerning the activities of statute laws of Delaware. Accordingly, the Board Suburban Insurance, Inc. In this regard, Applicant has concludes that approval of Applicant's proposal to committed that, in the event that the Board has not acquire banks in Maryland and Delaware is authorized decided the questions raised by Protestants concern- under Maryland and Delaware law and is not barred by ing the insurance activities of Suburban Insurance, the Douglas Amendment. Inc. before the date of consummation of Applicant's Based upon the fact that Applicant and Suburban acquisition of Suburban, Suburban Insurance, Inc. compete in different states, the Board concludes that will cease all advertising, the solicitation of business, consummation of the proposal would not have a and the writing of any new policies until such time as significant adverse effect on competition or result in a the Board acts to resolve these issues. On the basis of significant increase in the concentration of banking Applicant's commitment, the Board has determined resources in either state. that it may act on Applicant's application to acquire Applicant and Suburban compete directly in the Suburban Bank at this time, subject to this commit- Washington, D.C., banking market.5 Applicant is the ment. The Board expects to act on Protestants' con- sixth largest of 70 commercial banking organizations in tentions regarding the activities of Suburban Insur- this market, controlling 6.5 percent of total market ance, Inc. in the near future. deposits in commercial banks. Suburban is the fifth Applicant is the largest commercial banking organi- largest commercial banking organization in the marzation in Virginia, controlling total domestic deposits ket, controlling 8.4 percent of the total deposits in of approximately $6.8 billion, representing 20.5 per- commercial banks. Upon consummation of the procent of the total deposits of commercial banks in posal, Applicant would become the largest commercial Virginia.1 Suburban, the fourth largest commercial banking organization in the market, controlling 15.0 banking organization in Maryland, has one subsidiary percent of total deposits in commercial banks in the bank that controls aggregate domestic deposits of market. The Washington, D.C., banking market is not approximately $2.4 billion, representing 10.1 percent of the total deposits in commercial banks in Maryland. Suburban Bank/Delaware was chartered pursuant to Delaware law2 and engages in credit card operations 3. A bank holding company's home state is that state in which the and the making of consumer loans. operations of the bank holding company's banking subsidiaries were principally conducted on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. 4. Md. Ann. Code art. 5, § 1001 et seq. (Supp. 1985); Va. Code § 1. State banking data are as of September 30, 1985. Local market 6.1-398 etseq. (Supp. 1985). data are as of June 30, 1984. 5. The Washington, D.C., banking market is defined by the Wash- 2. Del. Code Ann. tit. 5 Sees. 801 et seq. ington, D.C., Ranally Metropolitan area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
278 Federal Reserve Bulletin • April 1986 concentrated, and would not become so upon consum- on competition for commercial leasing in any relevant mation. In this regard, the Board notes that the market. Herfindahl-Hirschman Index ("HHI") would in- After consideration of the above facts and other crease by 110 points to 803.6 In view of these and other facts of record, the Board concludes that Applicant's facts of record, the Board concludes that consumma- acquisition of Suburban Funding would not signifition of the proposal would not result in a substantial cantly affect existing or probable future competition in lessening of existing competition in the Washington, any relevant market. Furthermore, there is no evi- D.C., banking market. The Board also concludes that dence in the record to indicate that approval of this Applicant's acquisition of Suburban Bank/Delaware proposal would result in undue concentration of rewould not have a substantial adverse effect on existing sources, unfair competition, conflicts of interests, competition in view of Suburban's small share of the unsound banking practices, or other adverse effects on consumer loan and credit card business in the relevant the public interest. Accordingly, the Board has determarkets. mined that the balance of the public interest factors it In view of the existence of numerous other potential must consider under section 4(c)(8) of the Act is entrants into each of the markets served by Suburban favorable and consistent with approval of the applicaor Applicant, the Board has concluded that consum- tion to acquire Suburban Funding. mation of the proposed transaction would not have Based on the foregoing and other facts of record, the any significant adverse effects on probable future Board has determined that the applications under competition in any relevant market. sections 3 and 4 of the Act should be, and hereby are, The financial and managerial resources and future approved. The acquisition of Suburban's subsidiary prospects of Applicant, Suburban, and their respective bank shall not be consummated before the thirtieth subsidiaries are consistent with approval of the appli- calendar day following the effective date of this Order, cation. Considerations relating to the convenience and and neither the banking acquisition nor the nonbankneeds of the communities to be served also are consis- ing acquisition shall occur later than three months tent with approval. after the effective date of this Order, unless such Applicant also has applied, pursuant to section period is extended for good cause by the Board or by 4(c)(8) of the Act, to acquire Suburban Funding, a the Federal Reserve Bank of Richmond, acting pursunonbanking company that engages, inter alia, in the ant to delegated authority. The determination with commercial leasing and commercial finance activities respect to Applicant's acquisition of Suburban Funddescribed above. Applicant currently engages in these ing is subject to all of the conditions set forth in activities through its subsidiary, Sovran Leasing Cor- Regulation Y, including sections 225.4(d) and poration. 225.23(b) (12 C.F.R. §§ 225.4(d) and 225.23(b)), and to In the markets for commercial leasing and commer- the Board's authority to require such modifications or cial finance, this proposal would eliminate existing termination of activities of the bank holding company competition between Suburban and Sovran Leasing or any of its subsidiaries as the Board finds necessary Corporation. However, the market for this product is to assure compliance with, and prevent evasion of, the generally considered to be national or regional in provisions and purposes of the Act and the Board's scope. Shares of both Applicant and Suburban in these regulations and orders issued thereunder. markets are de minimis. Accordingly, the proposed By order of the Board of Governors, effective acquisition would not have a significant adverse effect February 27, 1986. Voting for this action: Vice Chairman Martin and Governors Wallich, Rice, Seger, Angell, and Johnson. Governor Wallich abstained from the insurance portion of this action. 6. Under the U.S. Department of Justice "Merger Guidelines," as Absent and not voting: Chairman Volcker. revised in 1984, a market in which a post-merger HHI is below 1000 is unconcentrated. The Department of Justice has stated that it will not challenge any merger producing an HHI below 1000, except in WILLIAM W. WILES extraordinary circumstances. [SEAL] Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 279 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By Board of Governors Recent applications have been approved by the Board of Governors as listed below. Copies are available upon request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551 Section 3 Board action Applicant Bank(s) (effective date) American Bancorp, Inc., First National Financial Corporation, February 3, 1986 Suring, Wisconsin Marinette, Wisconsin Ameritex Bancshares, Inc., Riverbend National Bank, February 3, 1986 Dallas, Texas Fort Worth, Texas By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Allied Bancshares, Inc., Allied Bank Northwest, N.A., Dallas February 7, 1986 Houston, Texas San Antonio, Texas Anderson Bancshares, Inc., Anderson State Bank, Inc., Richmond January 31, 1986 Hemingway, South Carolina Hemingway, South Carolina AT Indiana Corporation, First Indiana Bancorp, Cleveland January 23, 1986 Cleveland, Ohio Elkhart, Indiana AmeriTrust Corporation, First Indiana Bancorp, Cleveland January 23, 1986 Cleveland, Ohio Elkhart, Indiana Banco Nororiental De Eastern National Bank, Atlanta February 7, 1986 Venezuela, C.A., Hialeah, Florida Caracas, Venezuela Bancwell Financial Corporation, Bank of East Texas, Dallas November 22, 1985 Wells, Texas Chester, Texas The Bank of New York Fidata Trust Company California, New York January 31, 1986 Company, Inc., Los Angeles, California New York, New York Wall Street Data Services, Inc., Teaneck, New Jersey Belle Glade Bank Corporation, Bank of Belle Glade, Atlanta January 24, 1986 Belle Glade, Florida Belle Glade, Florida Calumet National Corporation, Calumet National Bank, Chicago January 23, 1986 Hammond, Indiana Hammond, Indiana CBN Bancshares, Inc., Mayfield Bancshares, Inc., Kansas City January 21, 1986 Murdock, Kansas May field, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
280 Federal Reserve Bulletin • April 1986 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Central Louisiana Capital Louisiana Delta Bank, Dallas January 10, 1986 Corporation, Lake Providence, Louisiana Ferriday, Louisiana Citicorp, Utah Firstbank, New York January 28, 1986 New York, New York Salt Lake City, Utah Citicorp Holdings, Inc., Wilmington, Delaware Citizens Bancorporation, Citizens Bank of Snohomish San Francisco January 17, 1986 Marysville, Washington County, Marysville, Washington Citizens Fidelity Corporation, Bank of Oldham County, St. Louis January 28, 1986 Lousiville, Kentucky LaGrange, Kentucky CSB, Inc., Chesterton State Bank, Chicago January 31, 1986 Chesterton, Indiana Chesterton, Indiana Decatur Investment, Inc., The Bank of Oberlin, Kansas City November 26, 1985 Oberlin, Kansas Oberlin, Kansas Egyptian Bancshares, Inc., Saline County State Bank, St. Louis February 21, 1986 Carrier Mills, Illinois Stonefort, Illinois Farmers Banc Corp, The Farmers National Bank of Philadelphia February 18, 1986 Mullica Hill, New Jersey Mullica Hill, Mullica Hill, New Jersey Farmers and Merchants Farmers and Merchants Bank of Atlanta February 18, 1986 Bancorp, Inc., Bumpus Mills, Dover, Tennessee Bumpus Mills, Tennessee First Alamogordo Bancorp, First National Bank of Ruidoso, Dallas December 16, 1985 Inc., Ruidoso, New Mexico Alamogordo, New Mexico First American Bancorp, First American Bank and Trust Atlanta February 3, 1986 Athens, Georgia Company, Athens, Georgia First Capital National Capital National Bank, Dallas January 27, 1986 Bancshares, Inc., Fort Worth, Texas Fort Worth, Texas The Citizens National Bank of Weatherford, Weatherford, Texas First Exchange Corp., First Exchange Bank of St. Louis, St. Louis February 21, 1986 Cape Girardeau, Missouri St. Louis, Missouri First Glen Bancorp, Inc., Peoples Commercial Bank, New York January 17, 1986 Glens Falls, New York East Greenbush, New York First Hawley Bancshares, Inc., First National Bank of Hawley, Minneapolis January 17, 1986 Hawley, Minnesota Hawley, Minnesota First Keyes Bancshares, Inc., Thomas Bancshares, Inc., Kansas City February 4, 1986 Keyes, Oklahoma Thomas, Oklahoma First National Bancorp, Inc., First National Bank of Joliet, Chicago January 16, 1986 Joliet, Illinois Joliet, Illinois First National Corporation, First Industrial Bank and Trust Atlanta January 17, 1986 Covington, Louisiana Company, Metairie, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 281 Section 3—Continued a i- Bank(s)/Nonbanking Reserve Effective t p Company Bank date First Union Corporation, Citizens DeKalb Bank, Richmond February 14, 1986 Charlotte, North Carolina Clarkston, Georgia FNBT Bancshares Perry, OK, First National Bank and Trust Kansas City January 22, 1986 Inc., Company of Perry, Perry, Oklahoma Perry, Oklahoma Gideon Bancshares Company, Commercial Bank of Gideon, St. Louis February 11, 1986 Dexter, Missouri Gideon, Missouri Great Northern Bancshares, First Security Bank of Kalispell, Minneapolis February 10, 1986 Inc., Kalispell, Montana Kalispell, Montana Herington Bancshares, Inc., The Bank of White City, Kansas City January 10, 1986 Herington, Kansas White City, Kansas Hub Financial Corporation, City Bank, N.A., Dallas January 17, 1986 Lubbock, Texas Lubbock, Texas Jansen Bancshares, Inc., State Bank of Jansen, Kansas City January 27, 1986 Jansen, Nebraska Jansen, Nebraska JDOB, Inc., Sandstone State Bank, Minneapolis February 4, 1986 Naples, Florida Sandstone, Minnesota K.B.J. Enterprises, Inc., Landmands National Bank, Chicago January 24, 1986 Sibley, Iowa Audubon, Iowa Kentucky Bancorporation, Inc., Kentucky State Bank, Cleveland February 6, 1986 Covington, Kentucky Carroll ton, Kentucky Lake Shore Bancorp, Inc., Bank of Hinsdale, Chicago January 24, 1986 Chicago, Illinois Hinsdale, Illinois Lewis & Clark Bancshares, First National Bank of St. Louis January 31, 1986 Inc., Wood River, Wood River, Illinois Wood River, Illinois Liberty Bancorp, Inc., Community State Bank, Chicago February 7, 1986 Hammond, Indiana North Liberty, Indiana Lincoln Financial Corporation, First Community Financial Corp., Chicago February 7, 1986 Fort Wayne, Indiana Decatur, Indiana Mountaineer Bankshares of City National Bank of Fairmont, Richmond February 6, 1986 W. Va., Inc., Fairmont, West Virginia Martinsburg, West Virginia Norban Financial Group, Inc., Seaport Citizens' Bank, San Francisco February 14, 1986 Coeur d'Alene, Idaho Lewiston, Idaho Old Second Bancorp, Inc., The Yorkville National Bank, Chicago January 24, 1986 Aurora, Illinois Yorkville, Illinois OMNIBANCORP, OMNIBANK Iliff, N.A., Kansas City November 7, 1985 Denver, Colorado Aurora, Colorado Peoples Bancshares of The Peoples Bank & Trust Dallas January 23, 1986 Natchitoches, Inc., Company, Natchitoches, Louisiana Natchitoches, Louisiana Pleasantville Bancorporation, Pleasantville State Bank, Chicago February 4, 1986 Pleasantville, Iowa Pleasantville, Iowa PNC Financial Corp., The Hershey Bank, Cleveland February 11, 1986 Pittsburgh, Pennsylvania Hershey, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
282 Federal Reserve Bulletin • April 1986 Section 3—Continued Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Princeton National Bancorp, Genoa State Bank, Chicago January 23, 1986 Inc., Genoa, Illinois Princeton, Illinois Randall Bank Employee Stock Randall Corporation of Chicago January 24, 1986 Ownership Trust, Wisconsin, Inc., Madison, Wisconsin Madison, Wisconsin Randall Corporation of Randall Bank, Chicago January 24, 1986 Wisconsin, Inc., Madison, Wisconsin Madison, Wisconsin Seaport Bancorp, Inc., Norban Financial Group, Inc., San Francisco February 14, 1986 Lewiston, Idaho Coeur d'Alene, Idaho South Kipling Bankshares, Ltd., North American National Bank, Kansas City January 31, 1986 Denver, Colorado Littleton, Colorado SouthTrust Corporation, First Dallas County Bank, Atlanta January 22, 1986 Birmingham, Alabama Selma, Alabama Sovran Financial Corporation, D.C. National BanCorp, Inc., Richmond February 6, 1986 Norfolk, Virginia Washington, D.C. Summcorp, American Bank & Trust Chicago January 22, 1986 Fort Wayne, Indiana Company, Marion, Indiana SWH Bancorp, Inc., Southwest Fidelity State Bank of Minneapolis February 10, 1986 Edina, Minnesota Edina, Edina, Minnesota Texas American Bancshares, Texas American Bank/Cityview, Dallas January 17, 1986 Inc., N.A., Fort Worth, Texas Fort Worth, Texas Texas American Bancshares, Texas American Bank/U.S., Dallas February 10, 1986 Inc., Newark, Delaware Fort Worth, Texas TOWNER BANCORPORA- State Bank of Towner, Minneapolis February 12, 1986 TION, LTD., Towner, North Dakota Towner, North Dakota United Bancorp of Kentucky, First National Bank of Versailles, Cleveland January 30, 1986 Inc., Versailles, Kentucky Lexington, Kentucky United Banks of Colorado, Inc., United Bank of Aurora—City Kansas City January 27, 1986 Denver, Colorado Center, Aurora, Colorado United Missouri Bancshares, United Missouri Bank of Kansas City November 22, 198f Inc., Clarksdale, Kansas City, Missouri Clarksdale, Missouri WestBanc Bancshares, Inc., Bank of the West, Dallas January 17, 1986 Austin, Texas Austin, Texas Windsor BancShares, Inc., Windsor State Bank, Chicago February 7, 1986 Windsor, Illinois Windsor, Illinois Woodforest Bancshares, Inc., Bank of Woodforest, Dallas November 8, 1985 Houston, Texas Houston, Texas Yardville National Bancorp, The Yardville National Bank, Philadelphia February 14, 1986 Yardville, New Jersey Yardville, New Jersey Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 283 Section 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date American Fletcher Corporation, Morris Plan Financial Services Chicago January 31, 1986 Indianapolis, Indiana Corporation, Indianapolis, Indiana Bank of New England Mariner Mortgage Corporation, Boston February 19, 1986 Corporation, Providence, Rhode Island Boston, Massachusetts Commercial National LINC Switch, Inc., Dallas January 28, 1986 Corporation, Baton Rouge, Louisiana Shreveport, Louisiana Fidelcor, Inc., Florida Commercial Mortgage Philadelphia February 18, 1986 Philadelphia, Pennsylvania Corporation, Orlando, Florida First Springfield National Corp., First Trust Company of Atlanta February 21, 1986 Springfield, Tennessee Springfield, Springfield, Tennessee FirsTier, Inc., data processing Kansas City January 23, 1986 Omaha, Nebraska Independent Bankshares, Inc., First Independent Computers, Dallas February 10, 1986 Abilene, Texas Inc., Abilene, Texas J.E. Coonley Company, leasing computer equipment to a Chicago January 30, 1986 Dows, Iowa nonsubsidiary affiliate Keystone Bancshares, Inc., Keystone Data Corporation, Chicago February 7, 1986 Kankakee, Illinois Kankakee, Illinois Midwest Financial Group, Inc., Midwest Financial Group Chicago February 4, 1986 Peoria, Illinois Brokerage Services, Inc., Peoria, Illinois National Bank of Canada, Mercantile Canada Corporation, New York February 10, 1986 Montreal, Canada Dallas, Texas New Hampshire Savings Bank National Mortgage Company, Boston January 17, 1986 Corporation, Inc., Concord, New Hampshire Nashua, New Hampshire Norwest Corporation, Edmison-Johnson Agency, Inc., Minneapolis January 30, 1986 Minneapolis, Minnesota Sioux Falls, South Dakota Rurban Financial Corp., Rurbanc Data Services, Inc., Cleveland February 5, 1986 Defiance, Ohio Defiance, Ohio Legal Developments continued on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
284 Federal Reserve Bulletin • April 1986 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 Florida Bankers Association, et al. v. Board of Gover- Cir., filed Jan. 2, 1986). nors, No. 85-193 (U.S., filed Aug. 5, 1985). Carter v. Board of Governors, No. 85-4021 (6th Cir., Populist Party of Iowa v. Federal Reserve Board, No. filed Dec. 9, 1985). 85-626-B (S.D. Iowa, filed Aug. 2, 1985). Howe v. United States, et al., No. 85-4504-C (D. Urwyler, et al. v. Internal Revenue Service, et al., No. Mass., filed Dec. 6, 1985). CV-F-85-402 REC (E.D. Cal., filed July 18, 1985). Myers, et al. v. Federal Reserve Board, No. 85-1427 Johnson v. Federal Reserve System, et al., No. S85- (D. Idaho, filed Nov. 18, 1985). 0958(R) and S85-1269(N) (S.D. Miss., filed July 16, Souser, et al. v. Volcker, et al., No. 85-C-2370, et al. 1985). (D. Colo., filed Nov. 1, 1985). Wight, et al. v. Internal Revenue Service, et al., No. Podolak v. Volcker, No. C85-0456, et al. (D. Wyo., CIV S-85-0012 MLS (E.D. Cal., filed July 12, 1985). filed Oct. 28, 1985). Cook v. Spillman, et al., No. CIV S-85-0953 EJG Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa, (E.D. Cal., filed July 10, 1985). filed Oct. 22, 1985). Florida Bankers Association v. Board of Governors, Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 (D. No. 84-3883 and No. 84-3884 (11th Cir., filed Feb. Minn., filed Oct. 21, 1985). 15, 1985). Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D. Florida Department of Banking v. Board of Gover- Neb., filed Oct. 16, 1985). nors, No. 84-3831 (11th Cir., filed Feb. 15, 1985), Jensen v. Wilkinson, et al., No. 85-4436-S, et al. (D. and No. 84-3832 (11th Cir., filed Feb. 15, 1985). Kan., filed Oct. 10, 1985). Dimension Financial Corporation v. Board of Gover- Alfson v. Wilkinson, et al., No. Al-85-267 (D. N.D., nors, No. 84-1274 (U.S., filed Feb. 6, 1985). filed Oct. 8, 1985). Lewis v. Volcker, et al., No. C-1-85-0099 (S.D. Ohio, First National Bank of Blue Island Employee Stock filed Jan. 14, 1985). Ownership Plan v. Board of Governors, No. 85- Brown v. United States Congress, et al., No. 84-2887- 2615 (7th Cir., filed Sept. 23, 1985). 6(IG) (S.D. Cal., filed Dec. 7, 1984). First National Bancshares II v. Board of Governors, Melcher v. Federal Open Market Committee, No. 84- No. 85-3702 (6th Cir., filed Sept. 4, 1985). 1335 (D.D.C., filed Apr. 30, 1984). McHuin v. Volcker, et al., No. 85-2170 WARB (W.D. Colorado Industrial Bankers Association v. Board of Okl., filed Aug. 29, 1985). Governors, No. 84-1122 (10th Cir., filed Jan. 27, Independent Community Bankers Associaton of South 1984). Dakota v. Board of Governors, No. 84-1496 (D.C. First Bancorporation v. Board of Governors, No. 84- Cir., filed Aug. 7, 1985). 1011 (10th Cir., filed Jan. 5, 1984). Securities Industry Association v. Board of Governors, No. 80-2614 (D.C. Cir., filed Oct. 24. 1980), and No. 80-2730 (D.C. Cir., filed Oct. 24, 1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
285 Membership of the Board of Governors of the Federal Reserve System, 1913-86 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin. .Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg... .New York .do Term expired Aug. 9, 1918. Frederic A. Delano .Chicago .do. Resigned July 21, 1918. W.P.G. Harding .... .Atlanta .do. Term expired Aug. 9, 1922. Adolph C. Miller ... .San Francisco .do. Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss New York .Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah Chicago.... .Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt New York .June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills Cleveland... .Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell Minneapolis .May 12, 1921 Resigned May 12, 1923. Milo D. Campbell Chicago .Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger Cleveland... .May 1, 1923 Resigned Sept. 15, 1927. George R. James St. Louis.... .May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.4 Edward H. Cunningham...Chicago do Died Nov. 28, 1930. Roy A. Young Minneapolis . .Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York ... .Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee Kansas City. .May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta .May 19, 1933 Resigned Aug. 15, 1934. M.S. Szymczak Chicago .June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas Kansas City... do Served until Feb. 10, 1936.3 Marriner S. Eccles San Francisco .Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York .. .Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee Cleveland.... do Served until Apr. 4, 1946.3 Ronald Ransom Atlanta do Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas .Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis Richmond... .June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper New York ... .Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans Richmond... .Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. ..St. Louis — .Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton Boston .Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe Philadelphia, .Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton Atlanta .Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell Minneapolis . do Resigned June 30, 1952. Wm. McC. Martin, Jr New York ... .April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr San Francisco .Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson Kansas City... do Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston Philadelphia... .Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller Minneapolis ... .Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson Dallas .Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr Atlanta .Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
286 Federal Reserve Bulletin • April 1986 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 George W. Mitchell. .Chicago Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane .Richmond Nov. 29, 1963 Served until Mar. 8, 1974.3 Sherman J. Maisel ... .San Francisco Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer. .Philadelphia Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill.. .Dallas May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns .New York Jan. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan .St. Louis Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher .San Francisco June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland .... .Kansas City June 11, 1973 Resigned May 15, 1976. Henry C. Wallich .Boston Mar. 8, 1974 Philip E. Coldwell .Dallas Oct. 29, 1974 Served through Feb. 29, 1980. Philip C. Jackson, Jr. .Atlanta July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee .Richmond Jan. 5, 1976 Served until Feb. 7, 1986.3 Stephen S. Gardner.. .Philadelphia Feb. 13, 1976 Died Nov. 19, 1978. David M. Lilly .Minneapolis June 1, 1976 Resigned Feb. 24, 1978. G. William Miller .San Francisco Mar. 8, 1978 Resigned Aug. 6, 1979. Nancy H. Teeters .Chicago Sept. 18, 1978 Served through June 27, 1984. Emmett J. Rice .New York June 20, 1979 Frederick H. Schultz. .Atlanta July 27, 1979 Served through Feb. 11, 1982. Paul A. Volcker .Philadelphia Aug. 6, 1979 Lyle E. Gramley .Kansas City May 28, 1980 Resigned Sept. 1, 1985. Preston Martin .San Francisco Mar. 31, 1982 Martha R. Seger .Chicago July 2, 1984 Wayne D. Angell .Kansas City Feb. 7, 1986 Manuel H. Johnson.., .Richmond Feb. 7, 1986 Chairmen4 Vice Chairmen4 Charles S. Hamlin .Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano Aug 10, 1914-Aug. 9, 1916 W.P.G. Harding .Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg Aug 10, 1916-Aug. 9, 1918 Daniel R. Crissinger... .May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young .Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer .Sept. 16, 1930-May 10, 1933 J.J. Thomas Aug 21, 1934-Feb. 10, 1936 Eugene R. Black .May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles .Nov. 15, 1934-Jan. 31, 1948 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe ... .Apr. 15, 1948-Mar. 31, 1951 J.L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. .Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell May 1, 1973-Feb. 13, 1976 Arthur F. Burns .Feb. 1, 1970-Jan. 31, 1978 Stephen S. Gardner Feb. 13, 1976-Nov. 19, 1978 G. William Miller .Mar. 8, 1978-Aug. 6, 1979 Frederick H. Schultz July 27, 1979-Feb. 11, 1982 Paul A. Volcker .Aug. 6, 1979- Preston Martin Mar. 31, 1982- EX-OFFICIO MEMBERS1 Secretaries of the Treasury Comptrollers of the Currency W.G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams ...Feb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes May 1, 1923-Dec. 17, 1924 Andrew W. Mellon Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J.W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J.F.T. O'Connor May 11, 1933-Feb. 1, 1936 Henry Morgenthau, Jr. ..Jan. 1, 1934-Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act, the composed of seven appointive members; that the Secretary of the Federal Reserve Board was composed of seven members, including Treasury and the Comptroller of the Currency should continue to five appointive members, the Secretary of the Treasury, who was ex- serve as members until Feb. 1, 1936, or until their successors were officio chairman of the Board, and the Comptroller of the Currency. appointed and had qualified; and that thereafter the terms of members The original term of office was ten years, and the five original should be fourteen years and that the designation of Chairman and appointive members had terms of two, four, six, eight, and ten years Vice Chairman of the Board should be for a term of four years. respectively. In 1922 the number of appointive members was in- 2. Date after words "Resigned" and "Retired" denotes final day of creased to six, and in 1933 the term of office was increased to twelve service. years. The Banking Act of 1935, approved Aug. 23, 1935, changed the 3. Successor took office on this date. name of the Federal Reserve Board to the Board of Governors of the 4. Chairman and Vice Chairman were designated Governor and Federal Reserve System and provided that the Board should be Vice Governor before Aug. 23, 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks MONEY STOCK AND BANK CREDIT A22 Gross demand deposits—individuals, partnerships, and corporations A3 Reserves, money stock, liquid assets, and debt measures A4 Reserves of depository institutions, Reserve FINANCIAL MARKETS Bank credit A5 Reserves and borrowings—Depository A23 Commercial paper and bankers dollar institutions acceptances outstanding A5 Federal funds and repurchase agreements— A23 Prime rate charged by banks on short-term Large member banks business loans A24 Interest rates—money and capital markets A25 Stock market—Selected statistics POLIC YINSTR UMENTS A26 Selected financial institutions—Selected assets and liabilities A6 Federal Reserve Bank interest rates A7 Reserve requirements of depository institutions A8 Maximum interest rates payable on time and FEDERAL FINANCE savings deposits at federally insured institutions A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation FEDERAL RESERVE BANKS A30 Gross public debt of U.S. Treasury—Types and ownership A10 Condition and Federal Reserve note statements A31 U.S. government securities dealers— All Maturity distribution of loan and security Transactions holdings A32 U.S. government securities dealers—Positions and financing A3 3 Federal and federally sponsored credit MONETAR Y 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 A35 Corporate profits and their distribution 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
77 Federal Reserve Bulletin • April 1986 A36 Nonfinancial corporations—Assets and A54 U.S. reserve assets liabilities A54 Foreign official assets held at Federal Reserve A36 Total nonfarm business expenditures on new Banks plant and equipment A55 Foreign branches of U.S. banks—Balance sheet A37 Domestic finance companies—Assets and data liabilities and business credit A57 Selected U.S. liabilities to foreign official institutions REAL ESTATE REPORTED BY BANKS IN THE UNITED STATES A38 Mortgage markets A39 Mortgage debt outstanding A57 Liabilities to and claims on foreigners A58 Liabilities to foreigners A60 Banks' own claims on foreigners CONSUMER INSTALLMENT CREDIT A61 Banks' own and domestic customers' claims on foreigners A40 Total outstanding and net change A61 Banks' own claims on unaffiliated foreigners A41 Terms A62 Claims on foreign countries—Combined domestic offices and foreign branches FLOW OF FUNDS REPORTED BY NONBANKING BUSINESS A42 Funds raised in U.S. credit markets ENTERPRISES IN THE UNITED STATES A43 Direct and indirect sources of funds to credit markets A63 Liabilities to unaffiliated foreigners A64 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS SELECTED MEASURES A65 Foreign transactions in securities A66 Marketable U.S. Treasury bonds and notes— A44 Nonfinancial business activity—Selected Foreign transactions measures A45 Labor force, employment, and unemployment A46 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A47 Industrial production—Indexes and gross value A49 Housing and construction A67 Discount rates of foreign central banks A50 Consumer and producer prices A67 Foreign short-term interest rates A51 Gross national product and income A68 Foreign exchange rates A52 Personal income and saving A69 Guide to Tabular Presentation, International Statistics Statistical Releases, and Special Tables SUMMARY STATISTICS A53 U.S. international transactions—Summary A54 U.S. foreign trade 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' 1986 Q1 Q2 Q3 Q4 Sept. Oct. Nov. Dec. Jan. Reserves of depository institutions2 1 Total 17.4 12.2 16.4 12.1 8.7 4.0 20.0 21.9 4.9 2 Required 16.9 12.3 17.1 11.1 13.5 1.6 15.4 18.8 3.5 3 Nonborrowed 57.3 14.1 18.2 9.9 2.8 7.0 4.9 34.6 20.0 4 Monetary base3 8.8 7.5 9.7 8.1 7.0 5.9 10.2 8.4 8.9 Concepts of money, liquid assets, and debt4 5 Ml 10.1 10.5 14.5 10.6 13.1 5.3 11.3 12.4 1.1 6 M2 11.7 6.3 9.5 5.9 6.7 4.1 5.6 6.8 1.2 7 M3 10.1 5.6 7.7 5.6 7.7 4.3 4.5 5.8 7.6 8 L 9.7 6.0 8.0 n.a. 9.7 5.6 10.9 n.a. n.a. 9 Debt 13.5 11.9 12.2 13.7 11.1 11.8 15.7 20.4 n.a. Nontransaction components 10 In M25 12.1 5.0 7.9 4.4 4.6 3.8 3.7 5.0 1.2 11 In M3 only6 4.2 2.8 .5 4.5 12.1 5.0 .0 1.9 33.7 Time and savings deposits Commercial banks 12 Savings7 -5.8 -1.0 7.6 3.2 2.9 3.9 2.9 -2.9 2.9 13 Small-denomination time8 .2 2.1 -3.3 -1.7 -2.2 -2.2 .6 5.7 7.5 14 Large-denomination time910 2.7 6.9 -2.2 12.7 19.7 8.4 9.6 10.4 45.6 Thrift institutions 15 Savings7 1.4 3.8 12.9 7.5 2.0 10.9 7.4 .7 1.3 16 Small-denomination time 3.1 1.0 -2.8 -2.7 -4.6 -4.1 .2 6.3 4.8 17 Large-denomination time9 17.2 5.5 -1.0 4.9 7.8 5.4 3.1 8.5 6.1 Debt components4 18 Federal 15.2 12.3 14.6 15.3 7.7 8.8 25.1 29.5 n.a. 19 Nonfederal 13.0 11.8 11.5 13.2 12.2 12.7 12.9 17.7 n.a. 20 Total loans and securities at commercial banks11 10.3 9.7 9.6 8.8 8.2 2.0 16.4 16.6 15.3 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 Nonfinancial Statistics • April 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 FFFaaaccctttooorrrsss 1985 1986 1985 1986 Nov. Dec. Jan. Dec. 18 Dec. 25 Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 196,936 203,644 206,784 203,121 204,641 207,411 204,546 205,090 209,038 208,358 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 171,234 178,242 181,208 178,203 178,911 180,041 179,581 180,533 183,223 181,944 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 170,943 177,120 179,076 177,874 177,887 178,372 179,089 179,955 178,833 178,904 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 291 1,122 2,132 329 1,024 1,669 492 578 4,390 3,040 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,362 8,661 8,754 8,325 8,703 9,150 8,297 8,378 9,134 9,102 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 135 434 527 98 476 923 70 151 907 875 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 1,920 1,107 834 1,001 948 1,727 612 615 964 841 1111100000 FFFFFllllloooooaaaaattttt 1,203 1,176 758 1,137 1,390 1,645 1,052 506 320 979 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 14,217 14,458 15,230 14,454 14,689 14,849 15,004 15,058 15,397 15,492 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt.................... 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 16,994 17,037 17,079 17,036 17,043 17,052 17,063 17,073 17,083 17,093 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 191,396 195,367 193,330 194,747 195,944 197,252 196,284 194,013 192,377 190,854 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 553 557 555 560 557 555 554 554 555 555 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 2,925 3,499 10,569 3,776 3,577 5,645 4,140 5,032 13,856 17,487 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 242 262 260 254 251 296 307 227 243 230 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss .................... 1,795 2,024 1,985 2,284 2,054 2,109 2,038 2,153 2,032 1,842 2222200000 OOOOOttttthhhhheeeeerrrrr 574 488 486 530 449 572 464 433 544 443 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,339 6,410 6,287 6,331 6,334 6,270 6,072 6,341 6,357 6,389 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 25,914 27,882 26,199 27,484 28,326 27,574 27,558 29,218 25,966 23,461 End-of-month figures Wednesday figures 1985 1986 1985 1986 Nov. Dec. Jan. Dec. 18 Dec. 25 Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 194,729 210,598 205,146 207,752 204,384 210,598 202,920 206,093 212,436 206,883 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 169,168 181,327 178,992 179,578 177,730 181,327 178,021 181,192 185,100 180,703 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 169,168 177,798 175,905 177,276 177,730 177,798 178,021 181,192 179,142 178,139 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 3,529 3087 2,302 0 3,529 0 0 5,958 2,564 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,227 9,921 8,850 8,912 8,227 9,921 8,227 8,227 9,366 8,995 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 8,227 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 1,694 623 685 0 1,694 0 0 1,139 768 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 1,602 3,060 827 2,293 1,362 3,060 576 644 755 769 3333322222 FFFFFllllloooooaaaaattttt 909 988 663 1,942 2,219 988 882 800 1,547 787 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 14,823 15,302 15,814 15,027 14,846 15,302 15,214 15,230 15,667 15,629 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 11,090 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt ............... 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 4,718 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 17,019 17,052 17,104 17,043 17,043 17,052 17,072 17,082 17,092 17,104 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 193,463 197,465 190,430 195,122 196,668 197,465 195,279 193,210 191,992 190,532 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 556 550 565 557 554 550 554 555 553 565 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 2,294 9,351 16,228 3,351 3,286 9,351 5,310 5,669 19,087 17,077 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 340 480 256 303 209 480 259 191 215 228 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss .................... 1,483 1,490 1,505 1,498 1,491 1,490 1,513 1,515 1,525 1,525 4444422222 OOOOOttttthhhhheeeeerrrrr 598 1,041 477 487 413 1,041 402 575 412 366 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,475 5,940 6,622 6,168 6,385 5,940 6,179 6,142 6,162 6,142 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 22,347 27,141 21,975 33,117 28,229 27,141 26,304 31,126 25,390 23,360 1. Includes securities loaned—fully guaranteed by U.S government securities 2. Excludes required clearing balances and adjustments to compensate for pledged with Federal Reserve Banks—and excludes (if any) securities sold and float. scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages8 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1983 1984 1985 1985 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. 1 Reserve balances with Reserve Banks' 21,138 21,738 27,620 23,367 23,503 23,415 24,972 25,431 26,385 27,620 2 Total vault cash2 20,755 22,316 22,956 22,180 22,530 22,839 22,465 22,724 22,457 22,956 3 Vault cash used to satisfy reserve requirements3 . 17,908 18,958 20,522 18,985 19,300 19,548 19,475 20,038 19,997 20,522 4 Surplus vault cash4 2,847 3,358 2,434 3,196 3,230 3,291 2,990 2,686 2,460 2,434 5 Total reserves5 38,894 40,696 48,142 42,352 42,803 42,963 44,447 44,469 46,382 48,142 6 Required reserves 38,333 39,843 47,085 41,447 41,948 42,135 43,782 44,716 45,454 47,085 7 Excess reserve balances at Reserve Banks6 561 853 1,058 905 855 827 666 753 928 1,058 8 Total borrowings at Reserve Banks 774 3,186 1,318 1,205 1,107 1,073 1,289 1,187 1,741 1,318 9 Seasonal borrowings at Reserve Banks 96 113 56 151 167 221 203 172 107 56 10 Extended credit at Reserve Banks7 2 2,604 499 665 507 570 656 629 530 499 Biweekly averages of daily figures for weeks ending 1985 and 1986 Oct. 9 Oct. 23 Nov. 6 Nov. 20 Dec.4 Dec. 18 Jan. 1' Jan. 15' Jan. 29 Feb. 12 11 Reserve balances with Reserve Banks1 25,553 25,232 25,643 26,242 27,029 27,503 27,928 28,282 24,710 23,960 12 Total vault cash2 23,067 22,831 22,151 22,528 22,543 22,464 23,612 23,591 24,684 26,078 13 Vault cash used to satisfy reserve requirements3 . 19,971 20,294 19,667 20,117 20,028 20,199 21,022 21,288 21,961 22,868 14 Surplus vault cash4 3,097 2,538 2,484 2,412 2,515 2,265 2,590 2,304 2,723 3,210 15 Total reserves5 45,523 45,525 45,310 46,359 47,057 47,702 48,950 49,570 46,671 46,828 16 Required reserves 44,876 44,733 44,508 45,466 46,005 46,875 47,644 48,294 45,753 45,622 17 Excess reserve balances at Reserve Banks6 647 793 802 893 1,052 828 1,307 1,276 918 1,206 18 Total borrowings at Reserve Banks 1,395 1,118 1,075 1,178 2,928 841 1,338 614 903 662 19 Seasonal borrowings at Reserve Banks 195 169 151 104 84 53 51 28 42 44 20 Extended credit at Reserve Banks7 627 649 598 522 503 524 472 471 529 480 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 qf 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 Banks1 Averages of daily figures, in millions of dollars 1985 and 1986 week ending Monday BByy mmaattuurriittyy aanndd ssoouurrccee Dec. 23 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Jan. 27 Feb. 3 Feb. 10 Feb. 17 One day and continuing contract 1 Commercial banks in United States 68,338 65,938r 72,134 71,450 66,084 60,226 62,958 68,513 64,716 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 33,875 32,376 33,421 34,812 31,603 31,327 30,857 32,031 32,117 3 Nonbank securities dealers 10,847 10,511 9,176 9,039 8,784 9,777 9,581 8,802 9,880 4 All other 29,060 26,187' 26,474 26,202 25,300 27,414 26,440 26,632 27,285 All other maturities 5 Commercial banks in United States 9,696 9,918 9,294 10,100 11,796 10,497 10,632 10,720 1111,,554488 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,132 7,299 6,563 7,100 8,811 7,568 6,998 5,957 6,295 7 Nonbank securities dealers 8,477 8,062 8,066 10,207 10,880 10,295 10,961 11,415 10,884 8 All other 10,378' 11,570 9,780 9,294' 9,130 9,411 10,002 10,387 11,190 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 33,521 31,448 32,608 29,515' 30,072 29,125 31,054 28,443 28,639 10 Nonbank securities dealers 8,785 8,976 9,235 10,107' 9,965 10,100 10,726 9,996 8,978 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A6 Domestic Nonfinancial Statistics • April 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 2/26/86 date rate 2/26/86 rate 2/26/86 rate 2/26/86 rate Boston 7'/2 5/20/85 7Vi 8Vi 9 9Vi 10 5/20/85 New York 5/20/85 5/20/85 Philadelphia 5/24/85 5/24/85 Cleveland 5/21/85 5/21/85 Richmond 5/20/85 5/20/85 Atlanta 5/20/85 5/20/85 Chicago 5/20/85 5/20/85 St. Louis 5/21/85 5/21/85 Minneapolis 5/20/85 5/20/85 Kansas City 5/20/85 5/20/85 Dallas 5/20/85 5/20/85 San Francisco... 7Vi 5/21/85 m 8 Vi 9 9Vi 10 5/21/85 Range of rates in recent years3 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le 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. In effect Dec. 31, 1973 7Vi IVi July 3 7-7'A 7'/4 1981— May 8 14 14 1974— Apr. 25 7Vi-8 8 10 71/4 71/4 Nov. 2 13-14 13 3 0 Aug. 21 73/4 73/4 6 13 13 Dec. 9 73/4-8 73/4 Sept. 22 8 8 Dec. 4 12 12 16 73/4 73/4 Oct. 16 8-8 Vi m 20 8Vi 8'/! 11998822—— JJuullyy 20 11 Vi-12 W/2 1975— Jan. 6 71/4-73/4 73/4 Nov. 1 8Vi-9Vi 9Vi 23 \\Vl llVi 10 71/4-73/4 71/4 3 m 9W Aug. 2 11-11Vi 11 24 7V4 7V« 3 11 11 Feb. 5 63/4-7'/4 63/4 Julv 20 10 10 16 10W 10 Vi 7 63/4 63/4 Aug. 17 lO-lOVi lOVi 27 lO-lOVi 10 Mar. 10 6V4-63/4 6V4 20 lOVi lOVi 30 10 10 14 6V4 6V4 Sept. 19 10Vi-ll 11 Oct. 12 9Vi-10 9 Vi May 16 6-6V4 6 21 11 11 13 9Vi 9 Vi 23 6 6 Oct. 8 11-12 12 Nov. 22 9-91/2 9 10 12 12 26 9 9 1976— Jan. 19 5Vi-6 5Vi Dec. 14 8V2-9 9 23 5Vi 5V4 Feb. IS 12-13 13 15 8'/i-9 8 Vi Nov. 22 5V4-5Vi 51/4 19 13 13 17 8 Vi m 26 5V4 5'/4 May 29 12-13 13 30 12 12 11998844—— AApprr.. 9 8Vi-9 9 1977— Aug. 30 5'/4-53/4 51/4 June 13 11-12 11 13 9 9 3 1 51/4-53/4 53/4 16 11 U Nov. 21 8Vi-9 m Sept. 2 53/4 53/4 July 28 10-11 10 26 8 Vi 8 Vi Oct. 26 6 6 29 10 10 Dec. 24 8 8 Sept. 26 11 11 1978— Jan. 9 6-6 Vi 6Vi Nov. 17 12 12 11998855—— MMaayy 20 7Vi-8 7Vi 20 6Vi 6Vi Dec. 5 12-13 13 24 7Vi 7Vi May 11 6Vi-7 7 13 13 12 7 7 5 13-14 14 In effect Feb. 26, 1986 m IVi 1. A temporary simplified seasonal program was established on Mar. 8, 1985, 3. Rates for short-term adjustment credit. For description and earlier data see and the interest rate was a fixed rate '/i percent above the rate on adjustment the following publications of the Board of Governors: Banking and Monetary credit. The program was re-established on Feb. 18, 1986; the rate may be either Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979, 1980, the same as that for adjustment credit or a fixed rate xh percent higher. 1981, and 1982. 2. Applicable to advances when exceptional circumstances or practices involve In 1980 and 1981, the Federal Reserve applied a surcharge to short-term only a particular depository institution and to advances when an institution is adjustment credit borrowings by institutions with deposits of $500 million or more under sustained liquidity pressures. As an alternative, for loans outstanding for that had borrowed in successive weeks or in more than 4 weeks in a calendar more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, into account rates on market sources of funds, but in no case will the rate charged 1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was be less than the basic rate plus one percentage point. Where credit provided to a adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and particular depository institution is anticipated to be outstanding for an unusually to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective prolonged period and in relatively large amounts, the time period in which each Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for rate under this structure is applied may be shortened. See section 201.3(b)(2) of applying the surcharge was changed from a calendar quarter to a moving 13-week Regulation A. period. The surcharge was eliminated on Nov. 17, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Policy Instruments A7 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS' Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyy dd ppee ee pp oo oo ff ss ii dd tt eepp iinn 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 ssii rr tt vv ,, aa aa ll55 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 $2 million-$10 million 9 Vi 12/30/76 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 1V4 years 3 10/6/83 Time and savings2,3 l'/i years or more 0 10/6/83 Savings 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2 Vi 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 offoreign 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 $2.6 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 lxh 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 DomesticN onfinancial Statistics • April 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 i tu a t n i d o ns)1 In effect Feb. 28, 1986 In effect Feb. 28, 1986 TTTyyypppeee ooofff dddeeepppooosssiiittt Percent Effective date Percent Effective date 2 3 1 M N Sa e o v g n i o n e t y g i a s m bl a e r o k r e d t e d r e o p f o s w it i t a h c d c r o a u w n a t l accounts 5 ( ( lf 3 2i ) ) 12/ 1 1 1 / / 4 1 1 / / / 8 8 8 2 4 6 5 ( ( V2 3 i ) ) 12 7 / 1 1 / / 1 4 1 / / / 7 8 8 9 2 6 4 7 T im 31 e da a y c s c ounts (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 5lA 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 V4 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 1985 TTyyppee ooff ttrraannssaaccttiioonn 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. Dec. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 17,067 18,888 20,036 2,099 0 33,,005566 1,171 0 1,180 4,515 2 Gross sales 8,369 3,420 8,557 0 0 0 0 265 0 0 3 Exchange 0 0 0 0 0 0 350 0 -350 0 4 Redemptions 3,000 2,400 7,700 0 200 0 0 0 0 0 Others within 1 year 5 Gross purchases 312 484 1,126 0 0 0 0 0 0 143 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shift 17,295 18,887 16,354 1,312 1,238 4,895 1,028 529 2,363 943 8 Exchange -14,164 -16,553 -20,840 0 -1,778 -3,275 -1,806 -942 -615 -1,529 9 Redemptions 0 87 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 1,797 1,896 1,638 0 00 6 00 00 00 886688 11 Gross sales 0 0 0 0 0 0 0 0 0 00 12 Maturity shift -14,524 -15,533 -13,709 -1,312 -1,153 -3,760 -1,028 -520 -1,731 -943 13 Exchange 11,804 11,641 16,039 0 1,778 1,825 1,806^ 942 650 1,529 5 to 10 years 14 Gross purchases 388 890 536 0 00 6 00 00 00 334455 15 Gross sales 0 0 300 0 0 0 0 0 0 0 16 Maturity shift -2,172 -2,450 -2,371 0 -85 -1,136 0 -10 -600 0 17 Exchange 2,128 2,950 2,750 0 0 800 0 0 184 0 Over 10 years 18 Gross purchases 307 383 441 0 0 00 00 0 00 197 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -601 -904 -275 0 0 0 0 0 -32 0 21 Exchange 234 1,962 2,052 0 0 650 0 0 131 0 All maturities 22 Gross purchases 19,870 22,540 23,776 2,099 0 3,068 1,171 0 11,,118800 6,068 23 Gross sales 8,369 3,420 8,857 0 0 0 0 265 0 0 24 Redemptions 3,000 2,487 7,700 0 200 0 0 0 0 0 Matched transactions 25 Gross sales 543,804 578,591 808,986 81,016 60,980 64,263 73,925 100,929 85,486 76,399 26 Gross purchases 543,173 576,908 810,432 83,782 59,165 64,209 72,347 100,197 84,769 78,962 Repurchase agreements 27 Gross purchases 130,774 105,971 127,933 2,801 10,486 1,928 14,029 0 3,684 23,338 28 Gross sales 130,286 108,291 127,690 2,801 10,486 1,928 14,029 0 3,684 19,809 29 Net change in U.S. government securities 8,358 12,631 8,908 4,865 -2,015 3,014 -408 -997 463 12,159 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 00 00 00 00 00 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 189 292 256 60 46 30 0 0 0r 0 Repurchase agreements 33 Gross purchases 18,957 8,833 11,509 120 2,439 335544 33,,552222 0 11,,445544 7,640 34 Gross sales 18,638 9,213 11,328 120 2,439 354 3,522 0 1,454'' 5,947 35 Net change in federal agency obligations 130 -672 -76 -60 -46 -30 0 0 <y 1,693 BANKERS ACCEPTANCES 36 Repurchase agreements, net 1,285 -1,062 -418 0 0 0 0 0 0 0 37 Total net change in System Open Market Account 9,773 10,897 8,414 4,805 -2,061 2,984 -408 -997 463 13,853 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 DomesticN onfinancial Statistics • April 1986 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1986 1985 1986 Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Nov. Dec. Jan. 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 3 487 482 508 538 560 504 487 562 Loans 4 To depository institutions 3,060 576 644 755 769 1,602 3,060 827 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 0 00 00 00 00 00 Federal agency obligations 7 Bought outright 8,227 8,227 8,227 8,227 8,227 88,,222277 88,,222277 88,,222277 8 Held under repurchase agreements 1,694 0 0 1,139 768 0 1,694 623 U.S. government securities Bought outright 9 Bills 85,425 85,648 88,819 86,769 85,766 78,347 85,425 8833,,553322 10 67,647 67,647 67,647 67,647 67,647 66,292 67,647 67,647 11 Bonds 24,726 24,726 24,726 24,726 24,726 24,529 24,726 24,726 12 Total bought outright1 177,798 178,021 181,192 179,142 178,139 169,168 177,798 175,905 13 Held under repurchase agreements 3,529 0 0 5,959 2,564 0 3,529 3,087 14 Total U.S. government securities 181,327 178,021 181,192 185,101 180,703 169,168 181,327 178,992 15 Total loans and securities 194,308 186,824 190,063 195,222 190,467 178,997 194,308 188,669 16 Items in process of collection 10,147 7,706 8,089 11,433 6,591 5,915 10,147 6,519 17 Bank premises 607 607 606 612 610 600 607 612 Other assets 18 Denominated in foreign currencies2 7,016 7,019 7,025 7,043 7,054 6,834 7,016 7,336 19 All other3 7,679 7,588 7,599 8,012 7,965 7,389 7,679 7,866 20 Total assets 236,052 226,034 229,698 238,668 229,055 216,047 236,052 227,372 LIABILITIES 21 Federal Reserve notes 181,450 179,243 177,191 175,991 174,553 177,504 181,450 174,453 Deposits 22 To depository institutions 28,631 27,817 32,641 26,915 24,885 23,830 28,631 2233,,448800 23 U.S. Treasury—General account 9,351 5,310 5.669 19,087 17,077 2,294 9,351 16,228 24 Foreign—Official accounts 480 259 191 215 228 340 480 256 25 Other 1,041 402 575 412 366 598 1,041 477 26 Total deposits 39,503 33,788 39,076 46,629 42,556 27,062 39,503 40,441 27 Deferred credit items 9,159 6,824 7,289 9,886 5,804 5,006 9,159 5,856 28 Other liabilities and accrued dividends4 2,378 2,302 2,256 2,254 2,231 2,306 2,378 2,372 29 Total liabilities 232,490 222,157 225,812 234,760 225,144 211,878 232,490 223,122 CAPITAL ACCOUNTS 30 Capital paid in 1,781 1,783 1,783 1,786 1,789 1,773 1,781 1,789 31 Surplus 1,781 1,770 1,781 1,781 1,781 1,626 1,781 1,781 32 Other capital accounts 0 324 322 341 341 770 0 680 33 Total liabilities and capital accounts 236,052 226,034 229,698 238,668 229,055 216,047 236,052 227,372 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 125,624 126,112 125,291 126,093 127,422 127,566 125,624 129,152 Federal Reserve note statement 35 Federal Reserve notes outstanding 208,427 207,846 207,917 208,274 208,363 208,830 208,427 208,135 36 LESS: Held by bank 26,977 28,603 30,726 32,283 33,810 31,326 26,977 33,682 37 Federal Reserve notes, net 181,450 179,243 177,191 175,991 174,553 177,504 181,450 174,453 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 165,642 163,435 161,383 160,183 158,745 161,696 165,642 158,645 42 Total collateral 181,450 179,243 177,191 175,991 174,553 177,504 181,450 174,453 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 Type and maturity groupings 1986 1985 1986 Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Nov. 29 Dec. 31 1 Loans—Total 3,060 576 644 755 769 1,602 3,060 2 Within 15 days 3,033 567 634 749 763 1,564 3,033 3 16 days to 90 days 27 9 10 6 60 380 270 4 91 days to 1 year 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 00 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 9 U.S. government securities—Total 181,327 178,021 181,192 185,101 180,703 169,168 181,327 1 1 1 1 1 1 3 5 0 2 4 1 O 9 O O W 1 1 6 v v v i t e e e d d h r r r a a in y y 5 1 1 s s 0 y y 1 t t e e 5 y o o a a e d r r a 1 9 s a r 0 t y s y o t e d s o ' a 5 a r 1 y y 0 s e y a e rs a rs 4 5 3 2 1 9 3 5 1 6 4 , , , , , , 3 4 6 7 3 7 0 6 5 5 6 8 7 2 0 9 4 5 4 5 3 2 1 7 2 6 5 1 4 , , , , , , 2 3 2 6 7 7 7 0 4 5 5 8 8 9 0 0 9 5 4 5 3 2 1 9 5 2 6 1 4 , , , , , , 9 6 7 3 7 7 4 7 4 1 5 6 2 2 6 0 9 3 4 5 3 2 1 1 4 5 4 1 4 4 , , , , , , 5 6 0 7 2 7 9 7 9 5 1 6 2 2 9 9 6 3 4 5 3 2 1 8 5 4 5 1 4 , , , , , , 7 6 0 6 7 7 8 3 8 7 5 6 6 9 4 2 9 3 4 5 3 2 1 4 5 1 1 1 4 , , , , , , 7 6 1 5 5 4 5 5 9 6 5 4 5 9 4 2 8 0 4 5 3 2 1 9 3 5 1 6 4 , , , , , , 3 4 6 7 3 7 0 6 5 5 6 8 7 2 0 9 4 5 16 Federal agency obligations—Total. 9,921 8,227 8,227 9,366 8,995 8,227 9,921 17 Within 15 days1 1,836 97 186 1,313 885 273 1,836 2 2 2 1 1 0 1 2 8 9 O 9 O O 1 1 6 v v v e e e d d r r r a a y y 5 1 1 s s 0 y y t t e e y o o a a e r r a 9 1 s 0 r t y s o t e d o a 5 a r y 1 y s 0 e a y r e s a rs 4 1 1 , , , 0 4 9 1 4 5 7 8 6 0 6 1 7 2 9 4 1 1 , , , 0 1 6 8 4 2 8 4 6 0 6 7 4 4 9 3 1 1 , , , 8 7 1 8 4 8 4 8 1 0 6 6 7 3 9 3 1 1 , , , 8 1 7 4 8 7 8 7 1 0 3 7 3 1 9 3 1 1 , , , 8 7 2 8 4 6 6 0 6 0 8 3 3 7 9 4 1 1 , , , 0 5 1 8 3 7 0 6 2 9 0 4 9 1 0 4 1 1 , , , 0 4 9 1 4 5 7 8 6 0 6 1 7 2 9 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A12 Domestic Nonfinancial Statistics • April 1986 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1985 1986 1982 1983 1984 1985 Dec. Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. Jan. Seasonally adjustec ADJUSTED FOR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS11 1 Total reserves2 34.28 36.14 39.08 45.19 42.18 42.61 43.19 43.51 43.65 44.38 45.19 45.37 2 Nonborrowed reserves 33.65 35.36 35.90 43.87 40.97 41.50 42.12 42.22 42.46 42.64 43.87 44.60 3 Nonborrowed reserves plus extended credit3 33.83 35.37 38.50 44.37 41.64 42.01 42.69 42.87 43.09 43.17 44.37 45.10 4 Required reserves 33.78 35.58 38.23 44.13 41.27 41.75 42.37 42.84 42.90 43.45 44.13 44.26 5 Monetary base4 170.04' 185.39' 198.80' 216.44' 207.57' 208.73' 210.85' 212.08' 213.12' 214.93' 216.44' 218.05 Not seasonally adjusted 6 Total reserves2 35.01 36.86 40.13 46.4C 41.% 42.41 42.60 43.22 43.75 44.62 46.40' 46.64 7 Nonborrowed reserves 34.37 36.09 36.94 45.09 40.75 41.30 41.52 41.93 42.56 42.88 45.09 45.87 8 Nonborrowed reserves plus extended credit3 34.56 36.09 39.55 45.59 41.42 41.81 42.09 42.59 43.19 43.41 45.59 46.36 9 Required reserves 34.51 36.30 39.28 45.35 41.05 41.55 41.77 42.56 42.99 43.70 45.35 45.53 10 Monetary base4 173.07' 188.66' 201.94' 219.75' 207.92' 210.19' 211.16' 211.65' 212.75' 215.42' 219.75' 218.17 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 41.85 38.89 40.70 48.14' 42.35 42.80 42.96 44.45 45.47 46.38 48.14' 48.06 12 Nonborrowed reserves 41.22 38.12 37.51 46.82' 41.15 41.70 41.89 43.16 44.28 44.64 46.82' 47.29 13 Nonborrowed reserves plus extended credit3 41.41 38.12 40.09 47.41 41.88 42.23 42.50 43.83 44.90 45.07 47.41 47.79 14 Required reserves 41.35 38.33 39.84 47.08 41.45 41.95 42.14 43.78 44.72 45.45 47.08 46.95 15 Monetary base4 180.42' 192.26' 202.51' 221.49' 208.32' 210.58' 211.53' 212.88' 214.47' 217.18' 221.49' 219.60 1. Figures incorporate adjustments for discontinuities associated with the of vault cash holdings of thrift institutions that is included in the currency implementation of the Monetary Control Act and other regulatory changes to component of the money stock plus, for institutions not having required reserve reserve requirements. To adjust for discontinuities due to changes in reserve balances, the excess of current vault cash over the amount applied to satisfy requirements on reservable nondeposit liabilities, the sum of such required current reserve requirements. After the introduction of contemporaneous reserve reserves is subtracted from the actual series. Similarly, in adjusting for discontin- requirements (CRR), currency and vault cash figures are measured over the uities in the monetary base, required clearing balances and adjustments to weekly computation period ending Monday. compensate for float also are subtracted from the actual series. Before CRR, all components of the monetary base other than excess reserves 2. Total reserves not adjusted for discontinuities consist of reserve balances are seasonally adjusted as a whole, rather than by component, and excess with Federal Reserve Banks, which exclude required clearing balances and reserves are added on a not seasonally adjusted basis. After CRR, the seasonally adjustments to compensate for float, plus vault cash used to satisfy reserve adjusted series consists of seasonally adjusted total reserves, which include requirements. Such vault cash consists of all vault cash held during the lagged excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted computation period by institutions having required reserve balances at Federal currency component of the money stock and the remaining items seasonally Reserve Banks plus the amount of vault cash equal to required reserves during the adjusted as a whole. maintenance period at institutions having no required reserve balances. 5. Reflects actual reserve requirements, including those on nondeposit liabil- 3. Extended credit consists of borrowing at the discount window under the ities, with no adjustments to eliminate the effects of discontinuities associated terms and conditions established for the extended credit program to help with implementation of the Monetary Control Act or other regulatory changes to depository institutions deal with sustained liquidity pressures. Because there is reserve requirements. not the same need to repay such borrowing promptly as there is with traditional NOTE. Latest monthly and biweekly figures are available from the Board's short-term adjustment credit, the money market impact of extended credit is H.3(502) statistical release. Historical data and estimates of the impact on similar to that of nonborrowed reserves. required reserves of changes in reserve requirements are available from the 4. The monetary base not adjusted for discontinuities consists of total reserves Banking Section, Division of Research and Statistics, Board of Governors of the plus required clearing balances and adjustments to compensate for float at Federal Federal Reserve System, Washington, D.C. 20551. Reserve Banks and the currency component of the money stock less the amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Billions of dollars, averages of daily figures 1985 1986 IItteemm11 DD 19 ee 8 cc 2 .. DD 19 ee 8 cc 3 .. DD 19 ee 8 cc 4 .. D 19 e 8 c 5 . OOcctt.. NNoovv.. DDeecc.. JJaann.. Seasonally adjusted' 1 Ml 479.9 527.1 558.5 626.3 614.1 619.9 626.3 626.9 7 M2 1,952.6 2,186.0 2,373.7 2,564.1 2,537.9 2,549.7 2,564.1 2,566.7 M3 2,443.5 2,697.3 2,986.6 3,190.9 3,163.7 3,175.5 3,190.9 3,211.1 4 L 2,850.1 3,163.5 3,532.4 n.a. 3,760.3 3,794.3 n.a. n.a. 5 4,649.8 5,177.1 5,927.0 n.a. 6,542.8 6,628.5 n.a. n.a. Ml components 6 Currency2 134.3 148.3 158.5 170.6 168.7 169.8 117700..66 117711..99 7 Travelers checks3 4.3 4.9 5.2 5.9 5.9 5.9 5.9 5.9 8 Demand deposits4 237.9 242.7 248.4 271.4 265.9 267.7 271.4 268.7 9 Other checkable deposits5 103.4 131.3 146.3 178.4 173.6 176.6 178.4 180.3 Nontransactions components 10 In M26 1,472.7 1,658.9 1,815.3 1,937.8 1,923.8 1,929.8 1,937.8 1,939.8 11 In M3 only7 490.9 511.3 612.9 626.8 625.8 625.8 626.8 644.4 Savings deposits9 1? Commercial Banks 163.7 133.4 122.3 124.4 124.4 124.7 112244..44 112244..77 13 Thrift institutions 194.2 173.2 167.3 179.1 177.9 179.0 179.1 179.3 Small denomination time deposits9 14 Commerical Banks 380.4 351.1 387.2 384.0 382.0 382.2 384.0 386.4 15 Thrift institutions 472.4 434.1 500.3 496.6 493.9 494.0 496.6 498.6 Money market mutual funds 16 General purpose and broker/dealer 185.2 138.2 167.5 175.8 177.0 176.5 175.8 177.1 17 Institution-only 51.1 43.2 62.7 64.5 63.3 64.5 64.5 66.5 Large denomination time deposits10 18 Commercial Banks" 262.1 228.7 263.7 278.9 274.3 276.5 278.9 289.5 19 Thrift institutions 65.8 101.1 150.2 157.3 155.8 156.2 157.3 158.1 Debt components 7.0 Federal debt 979.2 1,173.0 1,367.4 n.a. 1,516.6 1,548.3 n.a. n.a. 21 Non-federal debt 3,670.6 4,004.1 4,559.6 n.a. 5,026.2 5,080.3 n.a. n.a. Not seasonally adjusted' 77 Ml 490.9 538.8 570.5 639.6 612.0 621.5 639.6 633.2 73 M2 1,958.6 2,192.8 2,380.8 2,572.2 2,533.2 2,548.0 2,572.2 2,575.4 74 M3 2,453.3 2,707.9 2,998.0 3,203.5 3,160.7 3,178.9 3,203.5 3,218.8 75 L 2,856.4 3,170.1 3,537.6 n.a. 3,758.7 3,796.5 n.a. n.a. 26 Debt 4,644.6 5,171.6 5,921.2 n.a. 6,529.1 6,616.0 n.a. n.a. Ml components 27 Currency2 136.5 150.5 160.9 173.1 168.4 170.7 173.1 170.5 78 Travelers checks3 4.1 4.6 4.9 5.5 5.9 5.6 5.5 5.5 29 Demand deposits4 246.2 251.3 257.3 281.1 265.6 268.9 281.1 275.0 30 Other checkable deposits5 104.1 132.4 147.5 179.9 172.2 176.2 179.9 182.2 Nontransactions components 31 M26 1,467.7 1,654.0 1,810.3 1,932.6 1,921.2 1,926.6 11,,993322..66 1,942.2 32 M3 only7 494.7 515.1 617.2 631.3 627.4 630.9 631.3 643.4 Money market deposit accounts 33 Commercial banks 26.3 230.5 267.2 332.4 324.4 329.3 332.4 336.7 34 Thrift institutions 16.9 148.7 149.7 179.7 179.8 180.3 179.7 179.1 Savings deposits8 35 Commercial Banks 162.1 132.2 121.4 112233..55 112244..66 112244..33 112233..55 112233..99 36 Thrift institutions 193.1 172.3 166.5 178.3 178.3 179.0 178.3 178.8 Small denomination time deposits9 37 Commercial Banks 380.1 351.1 387.6 384.7 384.7 384.2 384.7 386.4 38 Thrift institutions 471.7 434.2 501.2 498.1 496.7 496.7 498.1 501.8 Money market mutual funds 39 General purpose and broker/dealer 185.2 138.2 167.5 175.8 177.0 176.5 175.8 177.1 40 Institution-only 51.1 43.2 62.7 64.5 63.3 64.5 64.5 66.5 Large denomination time deposits10 41 Commercial Banks11 265.2 230.8 265.5 280.6 276.7 278.1 280.6 288.3 42 Thrift institutions 65.8 101.4 150.6 157.7 156.2 157.0 157.7 158.9 Debt components 43 Federal debt 976.4 1,170.2 1,364.7 n.a. 1,515.6 1,544.2 n.a. n.a. 44 Non-federal debt 3,668.2 4,001.4 4,556.4 n.a. 5,013.6 5,071.9 n.a. n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A14 Domestic Nonfinancial Statistics • April 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 based on monthly averages. 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 July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 108,646.4 128,419.4 154,506.2 157,128.3 147,455.5 159,593.3 161,606.7 163,038.1 189,203.0 2 Major New York City banks 47,336.9 57,392.9 70,694.4 69,952.8 65,645.6 72,765.4 76,697.8 77,069.6 89,415.1 3 Other banks 61,309.5 71,026.5 84,061.8 87,175.5 81,809.9 86,827.9 84,908.9 85,968.5 99,787.9 4 ATS-NOW accounts3 1,394.9 1,589.5 1,917.4 1,870.1 2,008.8 2,465.3 2,171.9 2,227.8 2,452.5 5 Savings deposits4 735.7 633.1 539.0 584.3 550.7 509.1 562.3 533.4 418.6 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 376.8 434.1 496.2 506.4 469.6 508.8 511.3 508.1 581.9 7 Major New York City banks 1,512.0 1,843.0 2,168.9 2,131.4 1,965.4 2,326.1 2,421.9 2,368.5 2,567.0 8 Other banks 238.5 268.4 301.5 314.2 291.5 307.6 298.6 298.1 343.7 9 ATS-NOW accounts3 15.5 15.8 16.7 16.4 17.1 20.6 18.1 18.2 19.8 10 Savings deposits4 5.3 5.1 4.5 4.9 4.6 4.2 4.6 4.3 3.4 DEBITS TO Not seasonally adjusted Demand deposits2 11 All insured banks 108,459.5 128,038.6 154,057.1 157,898.2 152,985.1 148,788.8 167,020.6 157,070.9 192,060.0 12 Major New York City banks 47,238.2 57,282.4 70,400.9 70,496.1 68,401.8 68,967.9 78,010.5 73,982.4 92,551.5 N Other banks 61,221.3 70,756.2 83,656.2 87,402.1 84,583.3 79,820.9 89,010.1 83,088.6 99,508.5 14 ATS-NOW accounts3 1,387.5 1,580.3 1,900.2 1,807.5 1,770.5 2,289.9 2,117.9 2,007.8 2,354.8 15 MMDA5 567.4 849.0 1,179.0 1,183.3 1,201.2 1,192.2 1,293.0 1,221.5 1,493.2 16 Savings deposits4 736.4 633.0 538.7 586.0 538.4 490.1 580.2 496.3 405.3 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 376.1 433.2 497.0 509.5 499.3 473.1 530.1 489.3 574.9 18 Major New York City banks 1,510.0 1,838.6 2,191.1 2,185.9 2,189.4 2,216.6 2,507.4 2,332.4 2,594.1 19 Other banks 238.1 267.7 301.4 314.8 307.4 281.7 313.5 287.2 333.4 20 ATS-NOW accounts3 15.4 15.7 16.6 15.9 15.3 19.4 17.7 16.4 18.8 21 MMDA5 2.8 3.5 3.8 3.8 3.8 3.7 3.9 3.7 4.5 22 Savings deposits4 5.3 5.0 4.5 4.8 4.5 4.1 4.8 4.0 3.3 1. Annual averages of monthly figures. NOTE. Historical data for demand deposits are available back to 1970 estimated 2. Represents accounts of individuals, partnerships, and corporations and of in part from the debits series for 233 SMSAs that were available through June states and political subdivisions. 1977. Historical data for ATS-NOW and savings deposits are available back to 3. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- July 1977. Back data are available on request from the Banking Section, Division counts authorized for automatic transfer to demand deposits (ATS). ATS data of Research and Statistics, Board of Governors of the Federal Reserve System, availability starts with December 1978. Washington, D.C. 20551. 4. Excludes ATS and NOW accounts, MMDA and special club accounts, such These data also appear on the Board's G.6 (406) release. For address, see inside as Christmas and vacation clubs. front cover. 5. Money market deposit accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A16 DomesticN onfinancial Statistics • April 1986 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1985 1986 CCaatteeggoorryy Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Seasonally adjusted 1 Total loans and securities2 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 1,919.6 2 U.S. government securities 266.0 267.1 261.4 266.3 267.1 271.6 271.4 273.1 . 270.0 275.0 270.7 264.6 i Other securities 141.1 138.9 140.2 142.2 144.5 145.4 148.2 151.3 154.8 160.7 174.5 189.6 4 Total loans and leases2 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 1,465.5 5 Commercial and industrial 474.1 481.2 481.9 484.3 484.3 484.1 485.7 487.2 487.0 490.6 493.9 494.1 6 Bankers acceptances held3.. 6.2 6.4 5.4 4.9 4.7 5.1 5.0 4.7 4.7 44..99 5.2 55..33 7 Other commercial and industrial 468.0 474.9 476.5 479.3 479.6 479.0 480.7 482.5 482.3 485.7 488.6 488.9 8 U.S. addressees4 457.4 464.2 465.8 469.2 470.1 469.6 471.1 473.3 473.7 477.3 479.8 479.0 9 Non-U.S. addressees4 10.6 10.7 10.7 10.1 9.5 9.4 9.6 9.2 8.6 8.4 8.8 9.9 10 Real estate 382.8 386.7 390.8 394.8 398.7 403.7 407.1 409.9 414.5 419.2 423.2 426.1 11 Individual 258.5 262.9 266.5 269.9 272.7 276.3 278.5 280.3 281.3 283.8 286.5 289.5 12 Security 31.6 32.8 35.1 37.5 40.0 40.3 36.7 38.2r 37.9 3377..77'' 3388..66'' 4433..00 13 Nonbank financial institutions 30.9 30.6 31.1 31.5 31.2 31.6 32.3 32.5 32.4 33.1' 34.3'' 33.9 14 Agricultural 39.6 39.5 39.4 39.4 39.4 39.6 39.6 40.1 40.3 4400..55 4400..88 4400..99 15 State and political subdivisions 46.7 47.0 47.2 47.5 47.5 47.8 48.8 48.8 49.3 50.0 52.4 58.2 16 Foreign banks 11.5 11.2 10.9 10.6 10.3 10.4 10.2 9.9 9.6 9.6 9.5 9.6 17 Foreign official institutions ... 7.1 7.0 7.0 7.0 6.8 6.7 6.5 6.7 6.9 7.0 7.1 7.1 18 Lease financing receivables... 15.8 16.1 16.4 16.7 17.0 17.3 17.5 17.6 17.7 17.9 18.2 18.7 19 All other loans 39.0 40.6 40.8 40.8 43.1 44.2 46.4 45.8 42.8 44.6' 46.C 44.4 Not seasonally adjusted 20 Total loans and securities2 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 1,929.1 21 U.S. government securities 266.9 269.2 266.9 268.4 270.8 271.4 269.8 270.7 266.9 270.6 267.2 264.5 22 Other securities 141.3 139.1 139.9 142.8 •44.2 144.0 147.7 150.7 154.2 160.8 176.5 190.8 23 Total loans and leases2 1,334.6 1,349.4 1,362.3 1,373.4 1,388.6 1,397.2 1,404.6 1,418.4 1,424.9 1,439.4 1,464.8 1,473.8 2 2 4 5 Co B m a m nk er e c rs ia l a c a c n e d p t i a n n d c u e s s t ri h a e l ld3.. 473 6 . . 7 1 480 6 . . 8 3 482 5 . . 1 5 48 4 2. . 8 9 48 4 2. . 8 8 483 55 . .. 2 00 48 4 3 . . 9 5 487 44 . .. 2 66 488 44 . .. 0 66 491 44.. . 88 0 497 55 . .. 3 55 49 55 6. .. 3 44 26 Other commercial and 22 2 77 8 N U o . i S n n . d -U a u d s . t S d r . r i a e l a s d se d e r s4 e ssees4.... 4 4 6 5 1 7 7 0 . . . 5 6 1 4 46 7 1 4 4 0 . . . 3 5 2 4 46 7 6 6 9 . . . 7 6 9 4 46 7 8 7 9 . . . 3 9 6 4 46 7 8 7 9 . . . 6 9 3 4 46 7 8 9 8 . . . 5 7 2 4 4 7 6 8 9 9 . . . 6 6 0 4 47 8 3 9 2 . . . 1 4 6 4 47 8 4 3 9 . . . 3 4 1 4 47 8 7 6 9 . . . 1 1 2 4 4 9 8 1 1 1 0 . . . 8 8 0 4 4 9 8 1 0 0 0 . . . 9 9 0 29 Real estate 382.4 385.6 389.5 393.8 398.1 403.1 407.3 411.2 415.9 420.3 423.8 426.8 30 Individual 258.2 260.7 264.3 267.7 270.7 274.5 278.3 281.5 283.4 285.8 290.0 292.3 31 Security 30.8 32.2 35.0 36.0 39.9 38.3 35.8 3366..77 3377..77 3399..77'' 4433..33'' 4444..55 32 Nonbank financial institutions 30.7 30.6 31.3 31.3 31.2 31.7 32.4 32.6 32.3r 33.0 34.5' 33.9 3333 Agricultural 38.8 38.6 38.8 39.3 39.9 40.4 40.5 4400..99 40.9 4400..66 4400..44 4400..33 34 State and political subdivisions 46.7 47.0 47.2 47.5 47.5 47.8 48.8 48.8 49.3 50.0 52.4 58.2 3355 Foreign banks 11.5 11.0 10.5 10.3 10.0 10.3 9.9 10.1 9.9 9.8 10.1 9.8 36 Foreign official institutions ... 7.1 7.0 7.0 7.0 6.8 6.7 6.5 6.7 6.9 7.0 7.1 7.1 37 Lease financing receivables... 16.0 16.3 16.4 16.7 16.9 17.2 17.4 17.5 17.6 17.7 18.1 18.9 38 All other loans 38.8 39.8 40.2 41.0 44.7 44.1 44.2 45.3 43.0 44.5' 47.8' 45.8 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 All 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1985' 1986 SSoouurrccee Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Total nondeposit funds 1 Seasonally adjusted2 106.4 108.0 100.7 107.8 109.4 105.0 108.5 110.4 113.7 116.5 112211..44 112222..77 2 Not seasonally adjusted 111.0 112.6 104.1 112.3 110.8 104.1 110.2 111.3 114.8 120.0 123.6 125.2 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 139.2 138.3 134.2 137.8 143.6 143.5 139.7 140.3 140.4 145.1 114499..11 145.8 4 Not seasonally adjusted 143.8 142.9 137.6 142.3 145.0 142.6 141.5 141.3 141.6 148.7 151.3 148.4 5 Net balances due to foreign-related institutions, not seasonally adjusted -32.8 -30.3 -33.5 -30.0 -34.2 -38.5 -31.2 -30.0 --2266..77 --2288..66 --2277..77 --2233..11 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted4 -31.6 -29.5 -32.4 -29.5 -32.5 -38.3 -32.8 -30.7 --2288..77 -30.3 --3311..66 --2288..00 7 Gross due from balances 70.5 71.4 74.8 74.5 76.4 79.2 75.8 74.7 74.2 74.1 76.1 74.4 8 Gross due to balances 38.9 41.9 42.4 44.9 44.0 40.8 43.0 44.0 45.4 43.8 44.5 46.5 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted5 -1.2 -.8 -1.1 -.4 -1.7 -.1 1.6 .7 2.0 1.7 33..99 4.9 10 Gross due from balances 54.1 53.4 51.9 52.5 53.9 55.1 55.3 56.1 55.3 55.9 56.7 56.2 11 Gross due to balances 52.8 52.7 50.8 52.1 52.2 55.0 56.9 56.8 57.3 57.6 60.6 61.1 Security RP borrowings 12 Seasonally adjusted® 82.6 83.2 80.8 81.4 83.4 83.6 83.0 84.8 8844..11 8844..00 8877..00 8844..99 13 Not seasonally adjusted 84.7 85.2 81.7 83.3 82.3 80.3 82.3 83.3 82.7 85.0 86.6 84.9 U.S. Treasury demand balances7 14 Seasonally adjusted 13.8 12.7 15.0 20.3 16.9 2200..55 16.1 1144..99 44..77 1133..55 1177..55 1199..00 15 Not seasonally adjusted 15.8 12.8 15.4 20.9 14.9 23.1 13.4 16.8 5.4 7.9 14.5 24.0 Time deposits, $100,000 or more8 16 Seasonally adjusted 326.0 330.1 333.6 330.4 328.9 324.2 327.2 330.7 333.8 335.8 333377..44 334499..22 17 Not seasonally adjusted 325.3 330.7 330.5 329.6 327.2 323.2 327.7 332.7 336.2 337.3 339.2 348.0 1. Commercial banks are those in the 50 states and the District of Columbia 3. Other borrowings are borrowings on any instrument, such as a promissory with national or state charters plus agencies and branches of foreign banks, New note or due bill, given for the purpose of borrowing money for the banking York investment companies majority owned by foreign banks, and Edge Act business. This includes borrowings from Federal Reserve Banks and from foreign corporations owned by domestically chartered and foreign banks. banks, term federal funds, overdrawn due from bank balances, loan RPs, and Data for lines 1-4 and 12-17 have been revised in light of benchmarking and participations in pooled loans. revised seasonal adjustment. 4. Averages of daily figures for member and nonmember banks. These data also appear in the Board's G. 10 (411) release. For address see inside 5. Averages of daily data. front cover. 6. Based on daily average data reported by 122 large banks. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at nonbanks and not seasonally adjusted net Eurodollars. Includes averages of commercial banks. Averages of daily data. Wednesday data for domestically chartered banks and averages of current and 8. Averages of Wednesday figures. previous month-end data for foreign-related institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A18 Domestic Nonfinancial Statistics • April 1986 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars 1985 1986 AAccccoouunntt Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. ALL COMMERCIAL BANKING INSTITUTIONS1 1 Loans and securities 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 2,057.9 2 Investment securities 383.7 383.9 390.3 392.1 392.3 393.7 397.0 396.3 404.6 413.6 427.2 3 U.S. government securities 251.1 250.4 254.4 255.3 256.1 254.2 254.4 249.3 251.8 249.9 249.0 4 Other 132.5 133.5 135.9 136.8 136.2 139.6 142.6 147.0 152.8 163.6 178.3 5 Trading account assets 23.7 23.5 23.5 23.1 22.3 24.2 26.4 25.0 32.0 31.1 30.1 6 Total loans 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 1,600.6 7 Interbank loans 126.0 130.9 124.0 123.1 133.0 128.6 129.1 131.7 147.0 149.6 136.5 8 Loans excluding interbank 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 1,464.1 9 Commercial and industrial 483.2 482.1 483.4 484.3 485.9 484.6 489.2 488.8 493.1 495.9 496.9 10 Real estate 386.9 390.7 395.8 400.0 405.6 409.3 412.8 418.3 421.8 425.0 428.6 11 Individual 261.4 265.2 268.5 272.1 276.1 280.0 282.1 285.1 286.8 291.1 292.7 12 All other 218.5 222.9 223.0 232.6 233.4 231.5 233.4 233.9 242.5 253.0 245.8 13 Total cash assets 183.6 187.6 202.3 190.4 198.0 188.4 188.2 190.1 207.7 211.6 188.1 14 Reserves with Federal Reserve Banks 19.8 22.9 20.7 21.6 21.0 24.5 24.9 19.6 20.5 27.6 22.0 15 Cash in vault 21.3 21.3 23.3 22.2 22.0 22.7 22.1 22.6 21.4 22.2 23.0 16 Cash items in process of collection ... 63.9 64.2 76.5 68.4 70.5 62.5 61.4 67.9 81.9 79.3 63.9 17 Demand balances at U.S. depository institutions 31.7 30.2 35.2 31.3 33.5 30.6 30.8 31.6 35.8 36.1 31.4 18 Other cash assets 46.9 49.0 46.6 46.8 51.0 48.2 49.1 48.4 48.1 46.5 47.8 19 Other assets 188.5 188.6 183.4 189.4 194.5 180.8 185.8 178.1 185.0 189.4 178.0 20 Total assets/total liabilities and capital... 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 2,424.0 21 Deposits 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 1,729.5 22 Transaction deposits 457.9 465.6 480.3 474.0 492.3 475.4 474.9 491.4 521.9 536.4 488.2 23 Savings deposits 410.4 410.1 418.7 425.6 434.3 436.4 438.3 443.8 448.4 450.0 451.9 24 Time deposits 759.2 762.9 762.5 760.1 758.4 765.0 769.8 770.4 773.6 777.1 789.4 25 Borrowings 301.3 310.3 305.4 315.8 321.6 308.9 323.2 309.0 350.8 361.5 359.7 26 Other liabilities 177.0 175.6 176.0 179.7 181.1 182.0 183.6 177.9 170.6 178.5 177.9 27 Residual (assets less liabilities) 149.7 150.9 151.3 151.8 153.4 153.4 154.1 154.8 155.1 156.7 156.9 MEMO 28 U.S. government securities (including trading account) 268.6 266.7 269.3 271.0 270.0 268.3 271.5 265.1 271.7 265.7 266.9 29 Other securities (including trading account) 138.8 140.7 144.4 144.3 144.6 149.7 151.9 156.2 164.9 178.9 190.4 DOMESTICALLY CHARTERED COMMERCIAL BANKS2 30 Loans and securities 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 1,943.6 31 Investment securities 376.9 377.1 383.8 385.1 385.1 386.5 389.1 388.1 396.6 405.9 417.3 32 U.S. government securities 246.9 246.4 250.7 251.4 252.4 250.4 250.5 245.0 248.0 246.0 244.9 33 Other 130.1 130.7 133.1 133.8 132.7 136.0 ;38.6 143.1 148.7 159.9 172.4 34 Trading account assets 23.7 23.5 23.5 23.1 22.3 24.2 26.4 25.0 32.0 31.1 30.1 35 Total loans 1,384.1 1,399.0 1,405.5 1,420.9 1.440.5 1,440.1 1,148.1 1,459.2 1,489.1 1,507.2 1,496.3 36 Interbank loans 100.1 103.3 100.6 100.6 110.0 104.7 03.8 106.8 121.1 121.2 113.0 37 Loans excluding interbank 1,284.0 1,295.7 1,304.9 1,320.3 1,330.5 1,335.5 1,: 44.2 1,352.4 1,368.0 1,386.0 1,383.3 38 Commercial and industrial 436.0 436.5 436.6 436.0 437.6 435.7 <37.9 437.4 440.0 442.0 439.7 39 Real estate 381.8 385.4 390.4 394.4 399.9 403.7 ',07.0 412.7 416.3 419.4 423.1 40 Individual 261.2 265.0 268.3 271.8 275.9 279.8 !81.8 284.8 286.5 290.9 292.5 41 All other 205.0 208.7 209.6 218.1 217.2 216.3 ; 17.5 217.5 225.2 233.7 228.0 42 Total cash assets 172.7 176.0 191.2 179.2 185.3 176.4 S76.1 178.0 195.8 199.3 173.2 43 Reserves with Federal Reserve Banks 19.2 22.3 19.6 20.9 20.4 23.8 24.4 18.6 19.5 26.1 21.2 44 Cash in vault 21.3 21.3 23.2 22.2 22.0 22.6 22.0 22.6 21.4 22.2 23.0 45 Cash items in process of collection ... 63.7 63.9 76.2 68.2 70.3 62.2 61.1 67.7 81.6 79.0 63.5 46 Demand balances at U.S. depository institutions 30.4 28.8 33.8 29.8 32.2 29.0 29.4 30.2 34.0 34.4 29.6 47 Other cash assets 38.1 39.6 38.3 38.1 40.4 38.8 39.2 38.9 39.2 37.7 35.9 48 Other assets 137.2 137.5 131.5 137.7 144.9 132.6 133.3 132.0 137.1 141.2 130.0 49 Total assets/total liabilities and capital ... 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 2,246.8 50 Deposits 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 1,681.2 51 Transaction deposits 451.7 459.3 473.8 467.7 486.0 468.9 468.3 484.9 515.2 529.3 481.3 52 Savings deposits 409.2 408.9 417.5 424.3 432.9 435.1 436.9 442.4 446.9 448.5 450.4 53 Time deposits 721.6 725.6 727.1 725.2 723.3 727.9 731.4 732.2 735.4 738.9 749.5 54 Borrowings 240.6 248.5 246.1 253.8 258.4 249.6 259.0 248.0 280.5 290.0 292.2 55 Other liabilities 124.8 122.6 122.4 126.1 126.8 127.4 125.9 122.7 120.2 124.0 119.1 56 Residual (assets less liabilities) 147.0 148.3 148.6 149.1 150.7 150.8 151.5 152.2 152.5 154.0 154.3 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 1985 Dec. 11 Dec. 18 Dec. 25 Dec. 31' Jan. 8' Jan. 22 Jan. 29 1 Cash and balances due from depository institutions 101,713 107,264' 104,107' 121,384 94,718 108,070 105,190 87,231 2 Total loans, leases and securities, net 886,894' 910,057 908,278' 927,029 922,996 929,354 915,771 913,181 3 U.S. Treasury and government agency 86,918' 91,195' 85,472' 82,238 83,712 83,907 86,005 87,106 1 1 1 1 1 1 1 4 7 5 6 8 9 0 1 2 6 3 4 5 O O t t T T I I h h n n r r e e v O O O a v O a S r r e d d e t n v v t t s s a s i O O i h r e e e e n t n t t a r e r m m c e v n g g r d y u s e e o e f e e i a r a r i n b n n n a a v y i c c g t o t n e t r o e e c c i n d n a e o o a a a o t y s d e r u u h c c r c e p s c n n r c c a o y , o l o o o o t t r r e e l u c u u u i s a s t o l g s n n n r i e r c h t t t s p a , s l a o f b i s r v s y s a e u e t b m e t y s d e a s i a t t v u o r i r s s c i i k t o y s n , s, a n b d y s m ec a u tu ri r t i i t e y s 7 2 5 4 4 3 5 1 1 3 8 0 1 1 6 7 5 5 4 9 6 5 , , , , , , , , , , , , , 6 9 4 0 0 4 4 4 0 9 1 8 6 0 3 1 5 0 8 6 4 1 6 0 1 6 3 7 9 0 7 3 9 2 2 4 0 8 c ' 7 3 6 5 5 4 1 1 1 2 7 4 5 0 2 2 7 5 5 8 9 9 , , , , , , , , , , , , , 7 2 1 7 5 1 3 6 4 9 0 1 1 7 0 8 9 5 9 1 1 5 6 5 4 8 8 6 1 2 4 6 4 2 2 9 7 4 9 ' ' 4 6 3 6 5 5 1 1 1 9 5 9 7 7 3 8 2 5 5 5 8 7 , , , , , , , , , , , , 6 3 1 7 8 7 5 9 9 6 7 , 5 4 9 6 3 8 6 1 0 2 7 1 7 2 ^ 9 2 8 0 9 0 6 9 7 0 6 4 ' ' ' 6 7 6 6 3 5 1 1 1 1 1 4 7 9 1 8 5 3 0 3 7 2 7 1 , , , , , , , , , , , , , 7 2 4 3 5 9 7 5 2 6 1 9 0 7 9 2 6 7 1 6 7 4 4 6 9 3 5 5 8 3 9 6 4 3 4 2 7 4 6 6 6 5 6 3 7 1 1 1 1 8 2 5 9 9 3 7 1 5 7 4 8 1 , , , , , , , , , , , , , 3 1 3 7 4 9 9 7 0 1 3 3 2 9 2 9 7 9 0 2 5 2 0 5 9 1 1 7 3 5 1 8 6 2 0 4 6 0 9 6 3 7 6 6 5 1 1 1 1 4 2 2 0 8 7 6 8 5 8 5 7 1 , , , , , , , , , , , , , 5 1 9 9 8 5 7 9 7 3 3 2 2 6 8 3 3 3 1 5 9 1 2 7 5 5 7 1 4 9 3 4 8 2 5 6 2 9 4 6 3 7 6 6 5 1 1 1 1 4 0 5 2 1 7 8 8 5 8 7 7 1 , , , , , , , , , , , , , 2 7 7 7 9 9 6 1 7 3 4 2 1 5 0 1 6 0 0 8 1 4 2 2 8 4 1 3 4 3 9 0 7 4 9 2 5 4 9 6 6 3 7 6 5 1 1 1 1 1 4 7 9 2 5 5 7 0 7 7 8 1 , , , , , , , , , , , , , 5 2 2 1 7 9 8 1 1 8 9 3 4 5 7 5 8 2 4 5 3 0 2 7 5 5 5 7 2 6 2 9 6 4 3 5 7 4 2 2 2 2 1 1 1 0 1 2 7 8 9 O Fe t T O T T h d o e o o e t r h r o n c a e l t o l r o o h m n a f l e u b o n m r n a a s s e n n d a r k s s n c , i d s b a g o r l r l l o d e o b k a 1 s a s e s n 2 e r s k s , s a g n r d o s d s e 2 alers in securities 6 6 3 9 7 5 1 7 5 8 4 9 5 , , , , , , 6 7 4 6 9 0 4 8 8 1 8 5 5 5 5 7 9 5 ' ' ' ' ' 7 6 4 0 9 6 1 2 6 3 5 1 4 , , , , , , 1 9 2 9 1 1 8 2 4 5 8 3 6 6 5 6 5 4 ' ' ' ' ' 7 6 5 9 0 3 1 6 3 9 8 7 4 , , , , , , 8 6 2 5 7 5 5 6 0 0 7 8 3 5 5 9 1 1 ' ' ' ' 7 7 6 0 3 1 1 6 0 9 2 8 4 , , , , , , 5 6 9 8 2 7 4 3 6 5 0 8 1 6 7 2 4 9 7 6 1 9 6 3 1 8 3 8 5 0 6 , , , , , , 6 9 7 9 3 2 8 8 6 8 8 1 9 8 2 6 5 9 6 71 9 6 4 1 5 9 9 7 0 7 1 , , , , 6 6 8 3 4 2 4 4 4 6 2 4 5 7 2 0 8 4 6 7 9 5 3 0 1 8 3 6 9 8 5 , , , , , , 2 1 2 7 8 3 0 2 4 2 6 9 3 8 6 9 9 8 7 68 0 6 3 1 8 8 0 4 6 6 , , , , . , 1 9 7 4 6 1 7 6 7 3 6 2 7 3 2 6 6 0 2 2 2 2 2 3 4 6 7 5 Co B A m a ll m U N n o k . o e S t r e n h . c r - e s i U a a r d l a . S d c a . c r n e e a d p s d s t i d e a n e r n d s e c u s e s s s t e r e a i s a n l d 2 commercial paper 2 2 2 4 5 5 4 6 2 4 1 , , , , , 1 9 0 9 8 6 2 0 6 6 3 6 2 1 1 ' ' 2 2 2 5 4 5 4 2 4 8 2 , , , , , 9 8 0 0 9 5 3 2 9 1 5 6 9 1 9 ' ' 2 2 2 5 5 4 4 5 3 2 8 , , , , , 2 0 1 8 2 4 8 6 4 4 5 1 4 0 C ' 2 2 2 5 5 5 2 4 9 3 7 , , , , , 8 0 9 0 9 8 1 9 9 8 7 3 9 9 6 2 2 2 5 5 5 4 8 1 6 1 , , , , , 4 5 8 7 8 8 7 9 6 2 5 6 1 6 0 2 2 2 5 5 5 7 2 4 0 5 , , , , . 5 1 8 5 3 2 3 0 8 8 8 9 9 0 9 2 2 2 5 4 5 4 6 9 2 4 , , , , , 4 4 8 2 1 8 0 0 8 1 7 5 8 0 7 2 2 2 5 5 4 4 4 2 7 1 , . . , , 6 6 9 6 9 0 0 9 0 9 1 5 6 0 9 2 2 3 4 3 3 3 3 3 3 3 3 4 4 4 3 8 9 1 0 0 2 3 4 5 6 8 9 1 2 3 7 L O L A E e l t l h a S e o S s T R T T T F A T e r t : h o o o o o o e l U l L l N f B C e r a o i r d i s f o n f l n o o a a o n o i t p e a a n e n t n n m a a e d r u p h n n a a b s k s t s e i r m e o c r e n v t s a s i c r a a a i s g s n e i c n n e h d n i n t n i e t e k t r g n a e s a u d d d o c n s g a a r f i l d r i d l l o g a o l o i y n e e e e s n l r v a r g p a c a p i c e e a n f c e b s o s o o o r i n a e s u i e s g a l m r n v 2 d n i i l s n n t t t a r m , d e p o i u k e b c f c r e n r e s i s a c l o y n r a n e e e l a u s i a l s r t t n r a o 2 n s s n v r p n n u c t e t y r a d i r a b h 2 i a o n i l n e d l e d o d g s i e t u i U v h x n o c s i e p n s s e f t r f t i i e i c o i o t i n u c t f e n n u i i d d r n a s t i i a l t i t S o i n u i e t n n c r s a i s s e a t t s e l i t s i u n t s i t o it n u s t ions . 6 1 1 1 4 7 2 3 7 3 1 2 1 1 1 1 2 5 6 1 5 8 5 3 5 0 1 9 6 5 4 3 , , , , , , , , , , , , , , , , 6 6 2 8 7 9 0 2 9 8 1 5 0 6 8 6 4 1 7 8 7 3 4 4 2 3 3 7 0 2 6 3 < 1 1 6 4 9 7 0 2 0 3 8 3 3 4 2 y ' ' ' ' ' ' 6 1 1 1 4 8 2 2 3 7 3 1 1 3 1 1 3 5 6 7 5 2 2 3 5 9 1 7 2 1 4 3 , , , , , , , , , , , , , , , , 2 2 5 2 8 4 2 0 3 4 8 1 0 8 7 6 4 9 0 6 6 2 7 6 3 1 2 5 9 0 7 3 4 7 9 4 1 2 9 6 0 4 8 8 2 7 5 4 ' ' ' ' ' ' ' ' ' 6 1 1 1 4 3 8 2 2 7 3 1 1 3 1 1 2 5 3 9 6 3 5 2 9 2 5 8 1 2 4 3 , , , , , , , , , , , , , , , , 4 4 7 2 3 0 5 5 5 0 6 2 7 6 8 6 6 8 3 6 3 9 7 7 1 2 8 7 2 8 4 4 3 1 9 4 9 1 4 3 3 7 4 9 0 9 4 5 ' ' ' ' ' ' ' ' 6 1 1 1 4 2 3 9 7 3 1 3 1 1 1 1 5 6 5 5 6 6 9 3 9 2 3 8 9 9 5 3 , , , , , , , , , , , , , , , , 1 6 7 0 5 8 5 1 5 2 5 9 1 5 3 5 9 0 1 2 2 5 9 1 5 8 7 8 0 7 5 6 7 3 1 5 4 8 5 3 0 8 5 6 3 4 2 0 6 1 1 1 4 2 2 3 9 3 8 1 2 1 1 1 2 6 5 0 6 5 3 5 5 3 0 1 8 5 5 3 , , , , , , , , , , , , , , , , 6 7 3 3 3 9 6 0 3 0 7 2 9 7 4 6 8 4 6 8 5 8 0 1 9 4 5 1 7 9 6 8 1 3 1 6 5 8 8 0 3 4 6 0 3 7 7 2 6 1 1 1 4 2 2 3 9 8 3 1 3 1 1 1 6 2 5 6 5 3 3 5 6 0 2 1 1 5 5 3 , , , , , , , , , , , , , , , . 5 2 7 9 0 7 8 6 1 2 5 7 5 3 8 6 2 9 9 0 8 7 5 7 3 6 5 0 8 2 5 3 7 1 1 2 1 3 4 2 9 0 3 8 1 8 9 9 6 1 1 1 4 2 3 9 3 8 1 1 1 1 1 2 1 6 4 5 7 0 3 5 2 0 2 8 6 3 5 5 , , , , , , , , , , , , , , , , 4 4 9 5 9 0 8 0 0 0 1 1 2 7 6 2 0 6 5 6 1 4 7 5 9 2 9 4 0 2 4 5 3 4 4 6 2 2 1 2 7 2 3 9 1 2 9 0 6 1 1 1 4 2 3 8 8 3 1 1 1 2 1 1 6 1 4 6 5 5 1 5 3 3 1 6 2 5 3 5 , , , , , , , , , , , , , , . , 8 2 4 1 2 1 0 9 7 6 0 5 9 0 6 6 2 0 3 4 7 4 8 7 5 7 9 0 7 6 1 6 5 1 1 4 8 8 0 7 4 3 2 3 1 7 4 4 44 Total assets 1,117,754' 1,149,135 1,145,07^ 1,187,516 1,146,687 1,168,751 1,146,211 1,123,383 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 5 6 7 8 9 0 1 5 2 3 4 6 7 8 9 0 1 2 3 4 D T N L r i e o a D I B S C I D O F U S T F A U a B m n n n b t t n o o a r e e e l o t . t . a d a d a l i S h e r S r r p s r n p r l t t n i i a a e t e i a . e . o r o k e o v v e t i d i i c s r n o s f t i s s s i s i g g g g u t e i h d d i w s i n n e i o l o s t d t a r a i a e u u o i d o n o v i v y a n n r e c n a n a f g g r r e e b d p d t o l a l f g y o o y r l t r i s s i o r b o i n a o s v v n l , n , a p p r i s a d n x i i e e b m t m b e o n f i p o n p l - i r r t r o i i a e l l a s a o s s a e b n e n l g i i o r s t n t i n t r t f n r n n a m m m t i r i i i f t c d t t i t t c t c a l o i n e n u u e a c e a e - a c n w s s e e F l t t e n n l n o l d o i r i r r e e u t c o t f o o a s s s s s d s o s d e n n n s h t u h n u ' , r s e h u s s t i a i b b m c r p r p o e b n b n d d h a i i i r s f s o n o d n o e o l f i , i e r v s i v n r t t a c c d e t R a U h o i r i e n k i h s s s i n f o a y a e n d i n i s f e d n w l o o s i i a c n t e n c i e U t i c e d n r s o s e d a d o n e v s d r l r t m e i p m i i p t S t n n o e a o B t u o d r o s a n r t n t a a t t d i a i e n t S o e e t t i u s y n k t i o d a o a 3 t s s n n e i n t o s p d e a s n s o n s d s d i e t b s b e a n n tu k r s e .. s 2 4 4 2 1 2 0 2 8 4 2 4 2 8 5 2 1 5 6 3 2 6 0 5 2 1 3 8 2 7 8 1 0 , , , , , , , , , , , , , , , , 4 6 5 2 4 9 4 3 5 0 4 5 9 6 2 6 7 5 2 2 5 8 3 7 4 3 5 9 9 8 9 7 7 7 9 3 1 5 0 6 7 8 1 1 9 0 2 4 4 2 0 6 5 7 8 0 5 1 4 0 ' ' ' 2 4 4 1 2 2 2 4 1 8 4 2 6 2 4 8 1 1 6 5 5 4 7 0 1 3 9 1 3 2 9 2 8 3 1 1 , , , , , , , , , , , , , , , , , , 0 5 5 4 9 3 5 7 4 7 3 5 3 6 6 9 5 5 5 6 0 6 8 5 8 2 4 7 4 3 0 9 8 6 3 3 9 5 6 9 5 8 6 1 9 1 8 5 0 0 9 1 8 9 9 2 0 9 7 6 ' ' 2 4 4 2 2 1 2 2 4 8 4 2 3 8 1 6 1 1 0 6 7 5 6 2 1 3 2 9 3 6 8 2 6 0 5 , , , , , , , , , , , , , , , , , 2 6 7 2 7 6 2 6 0 7 3 3 8 7 6 8 6 8 5 8 0 1 0 4 7 7 2 8 6 1 9 2 2 8 8 3 9 6 4 1 4 1 1 8 7 9 2 8 3 9 9 4 1 0 2 2 2 2 8 2 ' ' ' 2 4 4 2 2 1 4 5 5 9 3 2 9 1 3 9 1 1 6 3 3 7 9 2 3 0 0 0 4 1 2 0 2 1 4 1 6 , , , , , , , , , , , , , , , , , , , 5 3 9 1 1 2 4 3 6 2 8 3 0 8 1 0 5 4 5 9 6 8 3 8 0 6 0 2 0 3 9 8 1 8 8 9 8 7 2 0 3 5 0 6 9 9 6 6 9 9 5 3 0 4 0 2 8 2 6 2 4 2 4 2 2 1 5 4 0 9 2 2 2 3 8 6 5 6 4 2 5 9 9 3 3 5 9 2 7 6 4 5 1 , , , , , , , , , , , , , , , , , 3 3 7 1 2 7 6 6 1 4 8 1 5 2 0 9 1 4 5 1 4 5 4 3 9 6 0 2 7 5 5 7 8 6 5 0 2 1 1 9 5 0 4 0 6 9 6 0 6 7 7 4 2 0 9 0 0 2 2 5 4 4 2 2 2 1 9 5 4 2 8 2 2 2 4 1 6 1 5 6 3 5 4 9 3 2 6 6 5 6 2 2 6 1 1 5 , , , , , , , . , , , , , . , , , , 9 2 6 1 6 5 8 5 3 0 4 6 3 3 9 4 0 8 5 1 9 4 3 6 8 6 9 6 3 5 2 1 9 4 4 2 9 5 1 9 7 7 8 4 2 5 3 6 4 6 3 8 0 2 0 6 6 8 0 8 4 4 2 2 2 1 9 5 4 1 3 1 2 2 8 5 1 1 2 1 4 2 5 6 9 3 6 6 6 5 3 8 1 0 7 , , , , , , , , , , , , , , , , , 7 2 4 6 0 5 0 9 6 8 7 3 5 5 9 2 0 9 5 2 0 2 2 5 9 3 5 0 9 9 2 1 7 4 0 3 7 1 5 5 1 4 1 4 0 3 8 6 7 3 4 8 8 0 6 1 4 7 6 3 4 4 2 2 1 1 5 9 4 2 3 1 2 8 9 4 1 4 9 0 4 2 5 2 2 5 9 5 5 2 3 6 1 7 1 , , . , , , , , . , , , , , , , , , 8 9 3 9 0 0 6 3 1 6 9 0 4 2 8 2 5 0 9 2 8 0 3 2 8 2 3 9 1 2 1 8 4 2 5 0 3 2 0 0 1 7 7 6 2 2 7 0 4 7 9 2 2 6 6 0 4 9 0 0 65 Total liabilities 1,039,525' 1,070,850 1,066,564' 1,108,571 1,066,628 1,088,724 1,066,526 1,043,660 66 Residual (total assets minus total liabilities)4 78,229 78,285 78,509 78,945 80,059 80,027 79,685 79,723 6 6 6 7 7 7 7 7 8 9 0 2 1 3 T T T M L N o o i o o E m O C t t a n M a a e n o t t l l O h r s m d l l e a o o r m s e n a a o p s e n n l a o d r s s c s c t i o i a a t i a u s o n n l n t d d i r a n i l l n s g e e a a h d a a v m t s s i i e e n n o t s s o d g u s u n ( ( a g g s t f d s t r r f r e i o o l i o p s s a i f a s s o l ) ) t s $ e i a 1 a s ts d n — 0 0 d j ( u t , i 0 o n s in 0 t t c a e 0 v l d l u e 6 o 2 d s r t 5 i n m m g e o n M r t e s M ad D j A us s t ) e . d .. 5 7 8 1 1 0 5 5 9 5 8 8 1 1 1 , , , , , , 7 2 2 8 8 0 7 8 5 8 3 3 9 3 8 7 4 5 9 9 8 ' ' 8 7 1 1 1 7 9 5 4 4 1 8 1 1 , , , , , , 9 5 2 4 8 7 1 1 8 4 3 8 5 7 9 1 6 1 4 2 C ' ' 8 7 1 1 7 1 5 9 7 8 9 2 1 1 , , , , , , 5 2 7 1 8 1 7 1 2 8 3 4 9 4 4 3 8 9 7 0 2 ' ' 8 7 1 1 2 9 6 9 7 3 3 1 5 1 , , , , , , 0 4 9 5 1 8 7 1 9 5 1 4 3 1 9 4 6 5 4 0 4 8 7 1 1 2 9 9 6 7 4 5 4 1 1 , , , , , , 9 5 5 7 7 1 8 4 1 4 7 2 5 8 1 6 0 0 9 9 8 8 7 1 1 9 3 6 9 5 0 4 6 1 1 , , , , , , 4 2 0 8 1 7 1 6 6 2 4 5 4 0 0 0 2 7 4 2 5 7 8 1 1 2 8 6 9 0 6 3 5 1 1 , , , , , , 4 4 9 8 2 7 1 4 2 2 4 9 4 0 8 0 8 5 4 4 0 8 7 1 1 8 1 6 9 3 7 4 4 1 1 , , , , , , 5 0 6 2 8 7 0 4 2 0 1 4 7 7 1 8 2 9 8 3 4 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis or 2. Levels of major loan items were affected by the Sept. 26, 1984, transaction for other analytic uses. between Continental Illinois National Bank and the Federal Deposit Insurance 5. Exclusive of loans and federal funds transactions with domestic commercial Corporation. For details see the H.4.2 statistical release dated Oct. 5, 1984. banks. 3. Includes federal funds purchased and securities sold under agreements to 6. Loans sold are those sold outright to a bank's own foreign branches, repurchase; for information on these liabilities at banks with assets of $1 billion or nonconsolidated nonbank affiliates of the bank, the bank's holding company (if more on Dec. 31, 1977, see table 1.13. not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 Domestic Nonfinancial Statistics • April 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 AAccccoouunntt Dec. 11 Dec. 18 Dec. 25 Dec. 31 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Feb. 5 1 Cash and balances due from depository institutions 25,849 28,260 24,833 32,251 22,129 32,106 24,355 21,534 26,060 2 Total loans, leases and securities, net2 193,040 199,610 196,522 197,591 199,144 203,258 196,922 195,026 192,291 Securities 3 4 5 Investment account, by maturity 13,728 14,047 12,379 11,441 11,092 10,653 10,816 10,897 10,188 6 One year or less 2,505 2,334 1,894 1,409 1,438 1,439 1,458 1,524 1,468 7 Over one through five years 7,546 7,499 6,576 5,878 5,953 5,568 5,632 5,375 4,748 8 Over five years 33,,667777 4,214 33,,991100 44,,115544 33,,770011 33,,664455 33,,772266 33,,999988 33,,997722 9 10 11 Investment account 12,826 13,264 13,706 15,468 15,725 15,819 15,792 15,756 15,496 12 States and political subdivisions, by maturity 11,304 11,544 11,972 13,716 13,954 14,026 14,027 13,967 13,927 13 One year or less 1,785 1,769 1,512 1,922 1,758 1,778 1,740 1,826 1,825 14 Over one year 9,519 9,775 10,460 11,794 12,196 12,248 12,287 12,141 12,102 15 Other bonds, corporate stocks and securities 1,522 1,720 11,,773344 11,,775522 1,770 11,,779933 11,,776666 11,,778899 11,,556688 1166 Loans and leases 17 Federal funds sold4 26,372 27,362 25,360 24,724 28,344 31,513 29,520 30,335 27,639 18 To commercial banks 12,355 15,173 13,167 13,781 12,555 15,248 14,507 15,339 12,427 19 To nonbank brokers and dealers in securities 8,418 7,176 7,254 6,656 8,980 9,590 8,696 8,807 8,448 20 To others 5,600 5,014 4,939 4,286 6,808 6,676 6,317 6,189 6,763 21 Other loans and leases, gross 145,634 150,436 150,600 151,336 149,401 150,684 146,215 143,456 144,436 22 Other loans, gross 142,805 147,602 147,758 148,514 146,515 147,742 143,253 140,466 141,436 23 Commercial and industrial 59,302 58,927 58,545 59,218 59,649 59,251 58,900 57,739 57,624 24 Bankers acceptances and commercial paper 597 531 565 529 415 590 455 479 550 25 All other 58,705 58,397 57,980 58,688 59,233 58,660 58,445 57,260 57,074 26 U.S. addressees 57,982 57,735 57,292 57,993 58,580 57,998 57,822 56,649 56,463 27 Non-U.S. addressees 723 662 688 696 653 663 624 611 611 28 Real estate loans 29,019 29,048 29,377 29,363 29,490 29,549 29,477 30,166 30,130 29 To individuals for personal expenditures 18,177 18,288 18,377 18,553 17,938 17,824 17,794 17,740 17,709 30 To depository and financial institutions 13,793 13,788 13,413 15,117 12,751 12,685 12,737 12,341 12,977 31 Commercial banks in the United States 3,391 3,694 3,469 4,555 3,099' 3,196 3,484 3,433 4,028 32 Banks in foreign countries 2,844 2,290 2,453 2,759 2,312 2,156 2,308 2,249 2,441 33 Nonbank depository and other financial institutions 7,558 7,803 7,490 7,803 7,339' 7,333 6,945 6,658 6,508 34 For purchasing and carrying securities 8,701 13,081 12,669 9,716 11,938 13,535 9,423 8,069 8,637 35 To finance agricultural production 276 283 294 317 296 286 289 305 315 36 To states and political subdivisions 8,275 8,329 8,464 9,731 9,482 9,593 9,650 9,562 9,360 37 To foreign governments and official institutions 892 922 975 894 916 824 719 619 667 38 All other 4,369 4,936 5,644 5,605 4,054 4,194 4,264 3,924 4,017 39 Lease financing receivables 2,828 2,835 2,842 2,822 2,886 2,942 2,962 2,991 3,000 40 LESS: Unearned income 1,424 1,433 1,441 1,435 1,453 1,449 1,464 1,460 1,440 41 Loan and lease reserve 4,097 4,068 4,083 3,944 3,965 3,962 3,958 3,959 4,028 42 Other loans and leases, net 140,113 144,936 145,076 145,958 143,983 145,273 140,793 138,038 138,968 43 All other assetss 67,968 72,878 70,786 75,232 69,141 69,299 67,847 65,885 70,244 44 Total assets 286,858 300,748 292,141 305,074 290,414 304,663 289,124 282,446 288,595 Deposits 45 Demand deposits 52,668 57,606 56,302 71,163 52,941 62,570 54,493 50,504 54,245 46 Individuals, partnerships, and corporations 34,587' 36,734' 37,035' 47,941' 37,344' 41,038 35,778 33,684 35,443 47 States and political subdivisions 703 837 681 1,152 683 1,407 796 673 1,112 48 U.S. government 502 665 401 181 424 878 316 630 1,073 49 Depository institutions in the United States 5,580' 6,709' 6,707' 7,572' 5,175' 7,649 6,428 5,578 5,368 50 Banks in foreign countries 5,004 4,177 5,461 6,004 4,338 4,895 5,546 4,032 4,165 51 Foreign governments and official institutions 516 820 638 873 775 846 788 1,026 715 52 Certified and officers' checks 5,749 7,664 55,,337799 77,,444400 44,,220011 55,,885566 44,,883399 44,,888811 66,,337700 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers) 4,430 4,516 4,517 4,616 4,790 4,753 4,562 4,443 4,656 54 Nontransaction balances 88,458 88,635 89,380 92,914 92,287 92,441 91,793 91,455 91,983 55 Individuals, partnerships and corporations 80,383 80,382 81,009 83,956 83,392 83,540 82,959 82,571 83,030 56 States and political subdivisions 4,944 4,936 5,112 5,619 5,735 5,688 5,726 5,741 5,739 57 U.S. government 38 42 39 39 37 40 46 51 35 58 Depository institutions in the United States 1,880 2,138 2,082 2,151 2,106 2,190 2,149 2,148 2.226 59 Foreign governments, official institutions and banks 1,212 1,137 1,138 1,149 1,017 982 914 944 952 60 Liabilities for borrowed money 81,076 91,114 82,135 72,917 81,739 8844,,551177 7766,,992277 7766,,335522 7799,,225522 61 2,020 6? 2,971 3,733 3,984 1,834 4 770 4 986 4 964 3 281 63 All other liabilities for borrowed money6 81,076' 88,142 78,402 66,914 79,905 79,747 71,941 71388 75'971 64 Other liabilities and subordinated note and debentures 35,246 34,149 34,827 38,176 33,197 34,774 35,754 34,194 32,739 65 Total liabilities 261,878 276,020 267,162 279,786 264,954 279,055 263,530 256,948 262,876 66 Residual (total assets minus total liabilities)7 24,979 24,728 24,979 25,287 25,460 25,609 25,594 25,498 25,719 MEMO 67 Total loans and leases (gross) and investments adjusted2-8 182,815 186,243 185,410 184,634 188,908' 190,225 184,352 181,672 181,304 68 Total loans and leases (gross) adjusted8 156,260 158,932 159,324 157,724 162,091' 163,753 157,744 155,019 155,620 69 Time deposits in amounts of $100,000 or more 34,018 34,440 34,865 37,346' 37,334' 36,956 36,735 36,664 36,886 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 Dec. 11 Dec. 18 Dec. 25' Jan. 1' Jan. 8' Jan. 15 Jan. 22 Jan. 29 Feb. 5 1 Cash and due from depository institutions. 8,646 8,98 <y 8,267 9,996 9,297 8,874 9,297 9,794 8,704 2 Total loans and securities 59,752 64,368' 64,697 69,973 63,494 65,744 63,117 63,634 63,437 3 U.S. Treasury and govt, agency securities 3,874 3,716 3,728 3,700 3,663 4,267 3,887 3,506 3,960 4 Other securities 3,518 3,542 3,096 3,891 3,815 3,788 3,946 4,450 4,436 5 Federal funds sold2 3,149 5,699 4,789 4,938 4,517 5,519 4,323 4,778 3,630 6 To commercial banks in the United States 2,434 4,730 4,167 4,368 3,906 4,738 3,661 3,862 2,685 7 To others 715 969 622 569 611 781 662 917 945 8 Other loans, gross 49,211 51,412' 53,085 57,443 51,498 52,170 50,961 50,900 51,411 9 Commercial and industrial 29,709 30,163' 30,477 33,083 30,244 30,742 30,311 30,002 30,497 10 Bankers acceptances and commercial paper 2,233 2,136 1,913 2,511 2,111 2,093 2,153 2,088 22,,11%% 11 All other 27,476 28,028 28,564 30,572 28,133 28,649 28,157 27,914 28,300 12 U.S. addressees 25,881 26,415 26,927 28,715 26,349 26,786 26,298 26,054 26,461 13 Non-U.S. addressees 1,595 1,613 1,637 1,857 1,783 1,864 1,860 1,860 1,840 14 To financial institutions 13,405 14,444 15,110 15,118 13,963 14,210 13,892 14,078 13,864 15 Commercial banks in the United States . 10,483 11,133 11,440 11,654 10,824 10,776 10,796 11,070 10,762 16 Banks in foreign countries 1,119 1,059 1,163 1,039 998 1,163 1,068 1,056 1,124 17 Nonbank financial institutions 1,803 2,252 2,506 2,425 2,142 2,270 2,028 1,952 1,979 18 To foreign govts, and official institutions .. 746 750 790 703 692 710 704 702 650 19 For purchasing and carrying securities .. 1,993 2,673 3,360 5,041 3,133 3,058 2,566 2,619 2,790 20 All other 3,357 3,381' 3,348 3,499 3,466 3,450 3,488 3,500 3,609 21 Other assets (claims on nonrelated parties).. 21,909' 22,105' 22,051 21,088 20,708 21,097 21,006 21,920 22,258 22 Net due from related institutions 12,893 14,858 15,064 12,044 11,889 11,932 11,177 10,723 12,9% 23 Total assets 103,201' 110,312 110,079 113,101 105,388 107,648 104,598 106,070 107,395 24 Deposits or credit balances due to other than directly related institutions.... 32,426 32,621 32,668 32,846 32,529 32,263 32,555 32,872 3322,,551166 25 Transaction accounts and credit balances3 3,924 4,045 4,402 2,781 2,544 2,490 2,710 2,586 2,585 26 Individuals, partnerships, and corporations 1,425 1,466 1,760 1,776 1,410 1,362 1,349 1,367 11,,446677 27 Other 2,499 2,578 2,641 1,004 1,133 1,128 1,361 1,219 1,118 28 Nontransaction accounts4 28,501 28,576 28,267 30,065 29,986 29,773 29,845 30,286 29,931 29 Individuals, partnerships, and corporations 22,558 22,491 21,987 23,004 23,184 23,317 23,362 23,840 2233,,773322 30 Other 5,944 6,085 6,279 7,061 6,801 6,456 6,483 6,446 6,198 31 Borrowings from other than directly related institutions 38,731' 43,581 42,825 44,576 38,369 40,965 38,146 3388,,559944 4411,,335577 32 Federal funds purchased5 16,651' 21,204 19,817 19,819 15,845 18,537 15,871 17,187 20,612 33 From commercial banks in the United States 12,806' 17,326 15,823 15,400 11,347 13,581 11,213 12,495 1144,,776688 34 From others 3,846' 3,877 3,994 4,419 4,497 4,956 4,658 4,692 5,844 35 Other liabilities for borrowed money.... 22,079 22,377 23,008 24,757 22,524 22,428 22,274 21,407 20,745 36 To commercial banks in the United States 19,843 20,125 20,661 22,307 20,592 20,644 20,282 19,356 1188,,773377 37 To others 2,236 2,252 2,347 2,450 1,932 1,784 1,992 2,051 2,008 38 Other liabilities to nonrelated parties 23,868 23,787 23,921 23,661 22,857 23,530 22,899 23,576 24,292 39 Net due to related institutions 8,176 10,322 10,665 12,017 11,633 10,889 10,998 11,028 9,231 40 Total liabilities 103,201' 110,312 110,079 113,101 105,388 107,648 104,598 106,070 107,395 MEMO 41 Total loans (gross) and securities adjusted6 46,835 48,506' 49,090 53,950 48,764 50,230 48,660 48,702 4499,,999900 42 Total loans (gross) adjusted6 39,443 41,248' 42,266 46,359 41,286 42,175 40,827 40,747 41,594 A 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
A22 Domestic Nonfinancial Statistics • April 1986 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1 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 315.5 288.9 291.8 293.5 286.3 288.8 302.7 286.6 298.6 299.6 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 IInnssttrruummeenntt D 19 e 8 c 0 . D 19 e 8 c 1 . D 1 e 9 c 8 . 2 1 D 19 e 8 c 3 . D 1 e 9 c 84 .2 July Aug. Sept. Oct. Nov. Dec. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 124,374 165,829 166,436 188,312 239,117 262,792' 273,337' 276,587' 280,956' 288,638' 303,108 Financial companies3 Dealer-placed paper* 2 Total 19,599 30,333 34,605 44,622 56,917 68,054' 68,452' 70,595' 69,012' 71,800' 79,208 3 Bank-related (not seasonally adjusted) 3,561 6,045 2,516 2,441 2,035 2,083 2,136 2,333 2,077 1,969 1,602 Directly placed paper5 4 Total 67,854 81,660 84,393 96,918 110,474 118,722 128,216 131,801 131,064 131,578 135,412 5 Bank-related (not seasonally adjusted) 22,382 26,914 32,034 35,566 42,105 41,228 42,926 43,224 42,570 41,490 44,778 6 Nonfinancial companies6 36,921 53,836 47,437 46,772 71,726 76,016' 76,669' 74,191' 80,880' 85,26C 88,488 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 54,744 69,226 79,543 78,309 75,470 71,082 69,505 70,845 69,272 67,890 68,180 Holder 8 Accepting banks 10,564 10,857 10,910 9,355 10,255 8,755 8,563 10,014 9,719 11,027 11,233 9 Own bills 8,963 9,743 9,471 8,125 9,065 7,468 7,365 8,501 8,041 8,903 9,507 10 Bills bought 1,601 1,115 1,439 1,230 1,191 1,287 1,198 1,513 1,679 2,123 1,726 Federal Reserve Banks 11 Own account 776 195 1,480 418 0 0 0 0 0 0 0 12 Foreign correspondents 1,791 1,442 949 729 671 652 789 793 850 874 937 13 Others 41,614 56,731 66,204 68,225 67,595 64,900 63,338 63,857 62,910 61,109 60,398 Basis 14 Imports into United States 11,776 14,765 17,683 15,649 16,975 17,058 17,350 17,146 16,503 15,845 15,225 15 Exports from United States 12,712 15,400 16,328 16,880 15,859 12,978 12,861 13,242 13,116 13,030 13,189 16 All other 30,257 39,060 45,531 45,781 42,635 38,030 38,281 38,776 38,362 37,516 36,688 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 Effective date Effective Date Average Month rate 1984—Mar. 19 11.50 1984-—Nov 9 11.75 1984—Jan 11.00 1985—Jan Apr. 5 12.00 78 11.25 Feb 11.00 Feb May 8 12.50 Dec. 70 10.75 11.21 June 25 13.00 11.93 Sept.27 12.75 1985-—Jan. 15 10.50 12.39 Oct. 17 12.50 May 70 10.00 June 12.60 June 29 12.00 June 18 9.50 July 13.00 July Aug 13.00 Aug Sept 12.97 Sept Oct 12.58 Oct Nov 11.77 Nov Dec 11.06 Dec 1986—Jan NOTE. These data also appear in the Board's H.15 (519) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A24 Domestic Nonfinancial Statistics • April 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 1986 1986, week ending IInnssttrruummeenntt 11998833 11998844 11998855 Oct. Nov. Dec. Jan. Jan. 3 Jan. 10 Jan. 17 Jan. 24 Jan. 31 MONEY MARKET RATES 1 Federal funds12 9.09 10.22 8.10 7.99 8.05 8.28' 8.14 9.55 8.20 7.94 7.87 7.83 2 Discount window borrowing1,2'3 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 7.81 7.84 7.87 7.78 7.89 7.75 7.84 7.77 7.72 4 3-month 8.88 10.10 7.95 7.80 7.77 7.75 7.71 7.73 7.68 7.78 7.71 7.66 5 6-month 8.89 10.16 8.01 7.79 7.69 7.62 7.62 7.59 7.58 7.71 7.64 7.59 Finance paper, directly placed4-5 6 1-month 8.80 9.97 7.91 7.79 7.82' 7.81 7.75 7.78 7.73 7.84 7.74 7.67 7 3-month 8.70 9.73 7.77 7.60 7.58 7.57 7.52 7.52 7.48 7.54 7.56 7.51 8 6-month 8.69 9.65 7.75 7.59 7.57 7.51 7.47 7.46 7.43 7.49 7.50 7.46 Bankers acceptances5 6 9 3-month 8.90 10.14 7.92 7.76 7.70 7.65 7.62 7.62 7.64 7.69 7.60 7.58 10 6-month 8.91 10.19 7.96 7.75 7.59 7.52 7.55 7.47 7.53 7.66 7.56 7.50 Certificates of deposit, secondary market7 11 1-month 8.96 10.17 7.97 7.85 7.82 7.87 7.83 7.83 7.81 7.91 7.84 7.76 12 3-month 9.07 10.37 8.05 7.88 7.81 7.80 7.82 7.74 7.81 7.91 7.84 7.76 13 6-month 9.27 10.68 8.25 7.97 7.82 7.80 7.83 7.73 7.81 7.93 7.85 7.76 14 Eurodollar deposits, 3-month8 9.56 10.73 8.28 8.08 8.02 7.99 8.02 7.91 7.99 8.13 8.06 7.96 U.S. Treasury bills5 Secondary market9 15 3-month 8.61 9.52 7.48 7.16 7.24 7.10 7.07 7.04 7.13 7.17 6.99 6.98 16 6-month 8.73 9.76 7.65 7.33 7.30 7.14 7.16 7.11 7.20 7.26 7.13 7.07 17 1-year 8.80 9.92 7.81 7.45 7.33 7.16 7.21 7.12 7.21 7.32 7.21 7.11 Auction average10 18 3-month 8.63' 9.58' 7.49 7.17 7.20 7.07 7.04 7.04 7.05 7.23 6.98 6.92 19 6-month 8.75' 9.80' 7.66 7.32 7.26 7.09 7.13 7.07 7.11 7.28 7.14 7.03 20 1-year 8.86' 9.98' 7.79 7.42 7.33 7.06 7.31 n.a. n.a. n.a. 7.31 n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 9.57 10.89 8.43 8.01 7.88 7.67 7.73 7.63 7.74 7.86 7.73 7.62 22 2-year 10.21 11.65 9.27 8.87' 8.58 8.15 8.14 8.01 8.15 8.27 8.17 8.03 ">3 2-'/2-year13 9.11 88..8833 8.30 8.15 8.35 8.35 24 3-year 10.45 11.89 9.64 9.25 88..8888 8.40 8.41 8.25 8.39 8.57 8.46 8.29 25 5-year 10.80 12.24 10.13 9.69 9.28 8.73 8.68 8.50 8.65 8.86 8.75 8.56 26 7-year 11.02 12.40 10.51 10.11 9.62 9.11 9.03 8.90 9.01 9.18 9.07 8.90 27 10-year 11.10 12.44 10.62 10.24 9.78 9.26 9.19 9.03 9.16 9.35 9.24 9.09 28 20-year 11.34 12.48 10.97 10.67 10.24 9.75 9.59 9.52 9.57 9.70 9.64 9.48 29 30-year 11.18 12.39 10.79 10.50 10.06 9.54 9.40 9.28 9.37 9.49 9.43 9.34 Composite14 30 Over 10 years (long-term) 10.84 11.99 10.75 10.56 10.08 9.60 9.51 9.35 9.45 9.64 9.59 9.45 State and local notes and bonds Moody's series15 31 Aaa 8.80 9.61 8.60 8.58 8.13 7.98 7.74 7.95 7.70 7.75 7.70 7.60 32 Baa 10.17 10.38 9.58 9.54 9.20 9.05 8.79 9.00 8.75 8.80 8.75 8.65 33 Bond Buyer series16 9.51 10.10 9.10 9.08 8.54 8.43 8.08 8.33 8.04 8.10 8.05 7.86 Corporate bonds Seasoned issues17 34 All industries 12.78 13.49 12.05 11.69 11.29 10.89 10.75 10.68 10.67 10.83 10.80 10.71 35 Aaa 12.04 12.71 11.37 11.02 10.55 10.16 10.05 9.92 9.95 10.18 10.13 10.00 36 Aa 12.42 13.31 11.82 11.45 11.07 10.63 10.46 10.40 10.37 10.56 10.49 10.43 37 A 13.10 13.74 12.28 11.94 11.54 11.19 11.04 11.04 11.00 11.11 11.07 10.% 38 Baa 13.55 14.19 12.72 12.36 11.99 11.58 11.44 11.36 11.37 11.48 11.49 11.43 39 A-rated, recently-offered utility bonds18 12.73 13.81 12.06 11.82 11.38 10.91 10.74 10.59 10.83 10.75 10.82 10.67 MEMO: Dividend/price ratio19 40 Preferred stocks 11.02 11.59 10.49 10.35 10.12 10.05 9.85 10.11 9.80 9.91 9.88 9.81 41 Common stocks 4.40 4.64 4.25 4.28 4.06 3.88 3.90 3.82 3.89 3.88 3.97 3.84 1. Weekly and monthly figures are averages of all calendar days, where the 11. Yields are based on closing bid prices quoted by at least five dealers. rate for a weekend or holiday is taken to be the rate prevailing on the preceding 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields business day. The daily rate is the average of the rates on a given day weighted by are read from a yield curve at fixed maturities. Based on only recently issued, the volume of transactions at these rates. actively traded securities. 2. Weekly figures are averages for statement week ending Wednesday. 13. Each biweekly figure is the average of five business days ending on the 3. Rate for the Federal Reserve Bank of New York. Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate 4. Unweighted average of offering rates quoted by at least five dealers (in the determined the maximum interest rate payable in the following two-week period case of commercial paper), or finance companies (in the case of finance paper). on 2-Vi-year small saver certificates. (See table 1.16.) Before November 1979, maturities for data shown are 30-59 days, 90—119 days, 14. Averages (to maturity or call) for all outstanding bonds neither due nor and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150- callable in less than 10 years, including one very low yielding "flower" bond. 179 days for finance paper. 15. General obligations based on Thursday figures; Moody's Investors Service. 5. Yields are quoted on a bank-discount basis, rather than an investment yield 16. General obligations only, with 20 years to maturity, issued by 20 state and basis (which would give a higher figure). local governmental units of mixed quality. Based on figures for Thursday. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Daily figures from Moody's Investors Service. Based on yields to maturity (which may be, but need not be, the average of the rates quoted by the dealers). on selected long-term bonds. 7. Unweighted average of offered rates quoted by at least five dealers early in 18. Compilation of the Federal Reserve. This series is an estimate of the yield the day. on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 8. Calendar week average. For indication purposes only. call protection. Weekly data are based on Friday quotations. 9. Unweighted average of closing bid rates quoted by at least five dealers. 19. Standard and Poor's corporate series. Preferred stock ratio based on a 10. Rates are recorded in the week in which bills are issued. Beginning with the sample of ten issues: four public utilities, four industrials, one financial, and one Treasury bill auction held on Apr. 18, 1983, bidders were required to state the transportation. Common stock ratios on the 500 stocks in the price index. percentage yield (on a bank discount basis) that they would accept to two decimal NOTE. These data also appear in the Board's H.15 (519) and G.13 (415) releases. places. Thus, average issuing rates in bill auctions will be reported using two For address, see inside front cover. rather than three decimal places. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A23 1.36 STOCK MARKET Selected Statistics 1985 1986 IInnddiiccaattoorr 11998833 11998844 11998855 May June July Aug. Sept. Oct. Nov. Dec. Jan. Prices and trading (averages of daily figures) CCCCoooommmmmmmmoooonnnn ssssttttoooocccckkkk pppprrrriiiicccceeeessss 1111 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee ((((DDDDeeeecccc.... 33331111,,,, 1111999966665555 ==== 55550000)))) 92.63 92.46 108.09 107.00 109.52 111.64 109.09 106.62 107.57 113.93 119.33 120.16 2222 IIIInnnndddduuuussssttttrrrriiiiaaaallll 107.45 108.01 123.79 121.88 124.11 126.94 124.92 122.35 123.65 130.53 136.77 137.13 3333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn 89.36 85.63 104.11 99.66 105.79 111.67 109.92 104.96 103.72 108.61 113.52 115.72 4444 UUUUttttiiiilllliiiittttyyyy 47.00 46.44 56.75 57.32 59.61 59.68 56.99 55.93 55.84 59.07 61.69 62.46 5555 FFFFiiiinnnnaaaannnncccceeee 95.34 89.28 114.21 115.31 118.47 119.85 114.68 110.21 112.36 122.83 128.86 132.36 6666 SSSSttttaaaannnnddddaaaarrrrdddd &&&& PPPPoooooooorrrr''''ssss CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnn ((((1111999944441111----44443333 ==== 11110000))))1111 ............ 160.41 160.50 186.84 16.88 17.21 17.35 17.84 18.44 18.74 17.38 18.43 208.19 7777 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee2222 ((((AAAAuuuugggg.... 33331111,,,, 1111999977773333 ==== 55550000)))) 216.48 207.96 229.10 228.75 227.48 235.21 232.65 226.27 225.00 236.53 243.28 245.27 VVVVoooolllluuuummmmeeee ooooffff ttttrrrraaaaddddiiiinnnngggg ((((tttthhhhoooouuuussssaaaannnnddddssss ooooffff sssshhhhaaaarrrreeeessss)))) 8888 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 85,418 91,084 109,191 2,077 1,877 1,804 2,526 1,935 2,282 2,448 133,446 130,872 9999 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 8,215 6,107 8,355 7,171 7,128 7,284 7,275 7,057 7,648 9,183 11,890 11,105 Customer financing (end-of-period balances, in millions of dollars) 11110000 MMMMaaaarrrrggggiiiinnnn ccccrrrreeeeddddiiiitttt aaaatttt bbbbrrrrooookkkkeeeerrrr----ddddeeeeaaaalllleeeerrrrssss3333 23,000 22,470 28,390 24,300 25,260 25,220 25,780 25,330 26,350 26,400 28,390 26,810 FFFFrrrreeeeeeee ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss aaaatttt bbbbrrrrooookkkkeeeerrrrssss4444 11111111 MMMMaaaarrrrggggiiiinnnn----aaaaccccccccoooouuuunnnntttt 6,620 7,015 7,120 6,865 7,300 7,000 6,455 6,225 6,125 6,485r 7,120 6,935 11112222 CCCCaaaasssshhhh----aaaaccccccccoooouuuunnnntttt 8,430 10,215 12,840 9,230 10,115 9,700 9,440 10,080 9,630 10,340 12,840 11,697 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)5 14 Under 40 22.0 18.0 34.0 36.0 34.0 34.0 35.0 40.0 37.0 35.0 34.0 32.0 15 40-49 22.0 18.0 20.0 19.0 20.0 20.0 21.0 22.0 22.0 20.0 20.0 20.0 16 50-59 16.0 16.0 19.0 19.0 19.0 19.0 18.0 16.0 17.0 19.0 19.0 20.0 17 60-69 9.0 9.0 11.0 11.0 11.0 11.0 11.0 9.0 10.0 11.0 11.0 11.0 18 70-79 6.0 5.0 8.0 7.0 8.0 8.0 8.0 6.0 7.0 7.0 8.0 8.0 19 80 or more 6.0 6.0 8.0 8.0 8.0 8.0 7.0 7.0 7.0 8.0 8.0 9.0 Special miscellaneous-account balances at brokers (end of period) 20 Total balances (millions of dollars)6 58,329 75,840 99,310 87,120 86,910 89,240 90,930 91,400 92,250 95,240 99,310 99,290 Distribution by equity status (percent) 21 Net credit status 63.0 59.0 58.0 60.0 59.0 59.0 59.0 59.0 58.0 57.0 58.0 59.0 Debt status, equity of 22 60 percent or more 28.0 29.0 31.0 30.0 31.0 32.0 30.0 31.0 31.0 32.0 31.0 33.0 23 Less than 60 percent 9.0 11.0 11.0 10.0 10.0 9.0 11.0 10.0 11.0 11.0 11.0 8.0 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
A26 Domestic Nonfinancial Statistics • April 1986 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1985 AAccccoouunntt 11998822 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. FSLIC insured institutions 1 Assets 692,663 819,168 982,182 992,289 995,430 1,003,225 1,012,312 1,022,389 1,034,971' 1,041,913' 1,048,897' 1,061,387' 1,068,709' 7 Mortgages 477,009 521,308 603,308 608,267 613,334 617,574 623,275 627,265 632,818' 638,267' 644,290' 647,979' 651,343' Mortgage-backed securities 62,793 90,902 107,779 108,755 108,174 106,433 102,892 105,870 108,684 112,955' 111,242' 110,303' 110,322' 4 Cash and investment securities1 . 8822,,330000 110099,,992233 131,625 132,438 125,528 129,918 132,109 132,991 135,139' 130,745' 130,812' 139,609' 142,410' 5 Other 93,100 94,625 96,903 98,034 100,595 101,340 101,572' 101,648' 103,741' 103,073' 102,305' 6 Liabilities and net worth 692,663 819,168 982,182 992,289 995,430 1,003,225 1,012,312 1,022,389 1,034,971' 1,041,913' 1,048,897' 1,061,387' 1,068,709' 7 Savings capital 554,584 671,059 792,566 801,293 801,293 809,083 817,551 822,106 826,841 831,258' 833,193' 837,509' 843,346' 8 Borrowed money 97,459 98,511 129,321 132,665 132,230 129,082 130,269 133,995 139,484 144,837' 147,006' 152,747' 156,025' 9 FHLBB 63,818 57,253 71,470 71,674 72,785 74,159 75,897 77,756 80,129 81,486 82,569 82,718 84,849' 10 Other 33,641 41,258 57,851 60,991 59,445 54,923 54,372 56,239 59,355 63,351' 64,437' 70,029' 71,176' 11 Other 15,233 16,619 21,816 19,290 22,468 24,215 22,055 23,246 25,193 21,854' 24,255' 26,042' 22,149' 12 Net worth2 25,386 32,980 38,488 39,041 39,476 40,845 42,436 43,043' 43,454 43,965' 44,442 45,088' 46,649' H MEMO: Mortgage loan commitments outstanding3 .. 27,806 56,785 65,323 67,615 68,671 69,683 69,585 68,712 65,902 65,936' 64,862' 65,273' 63,60c Mutual savings banks4 14 Assets 174,197 193,535 206,175 210,568 210,469 212,509 212,163 213,824 215,298 215,560 215,893 216,793 Loans 15 Mortgage 94,091 97,356 103,654 104,340 105,102 105,869 105,891 106,441 107,322 108,842 109,171 109,494 16 Other 16,957 19.129 26,456 27,798 28,000 28,530 29,211 30,339 30,195 29,672 29,967 31,217 Securities 17 U.S. government 9,743 15,360 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 19,167 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 2,069 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 23,896 24,194 24,139 24,344 24,047 23,738 23,735 23,534 23,039 22,816 n.a. ?1 Cash 6,919 6,263 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 11,593 12,488 12,288 12,246 12,770 12,937 13,151 12,345 12,914 13,085 23 Liabilities 174,197 193,535 206,175 210,568 210,469 212,509 212,163 213,824 215,298 215,560 215,893 216,793 7,4 Deposits 155,196 172,665 181,849 185,197 184,478 185,802 186,091 186,824 187,207 187,722 187,239 187,552 75 Regular8 152,777 170,135 181,742r 180,804' 182,113' 182,218' 182,243' 183,881' 182,222' 183,560' 183,296' 183,716' 76 Ordinary savings 46,862 38,554 33,413 33,715 33,211 33,457 33,526 33,495 33,398 33,252 33,303 33,638 77 Time 96,369 95,129 103,536 105,204 104,527 104,843 104,756 104,737 104,448 104,668 104,024 104,116 78 Other 2,419 2,530 3,058 3,455 3,689 3,674 3,873 3,943 3,985 4,162 3,943 3,836 7,9 Other liabilities 8,336 10.154 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 10,670 10,720 10,803 10,913 11,238 11,453 11,704 11,882 12,299 12,567 Life insurance companies8 31 Assets 588,163 654,948 735,332 742,154 748,865 757,523 765,891 772,452 778,293 783,828 791,483 802,024 Securities 3? Government 36,499 50,752 65,867 65,603 66,402 67,880 68,636 68,983 69,975 71,049 72,334 73,451 33 United States6 16,529 28,636 43,916 43,502 44,200 45,593 46,260 46,514 47,343 48,181 49,300 50,321 34 State and local 8,664 9,986 9,000 8,902 8,923 8,998 9,044 8,980 9,201 9,293 9,475 9,615 35 Foreign7 11,306 12,130 12,951 13,199 13,279 13,289 13,332 13,489 13,431 13,575 13,559 13,515 36 Business 287,126 322.854 371,009 374,757 379,247 384,342 388,448 393,386 397,202 355,505 403,832 410,141 n.a. 37 Bonds 231,406 257.986 303,452 307,078 311,123 314,021 317,029 321,752 325,647 285,164 331,675 335,129 38 Stocks 55,720 64,868 67,557 67,679 68,124 70,321 71,419 71,634 71,555 70,341 72,157 75,012 39 Mortgages 141,989 150,999 157,253 158,162 159,393 160,470 161,485 162,690 163,027 163,929 165,687 167,306 40 Real estate 20,264 22,234 26,186 26,527 26,828 27,215 27,831 28,240 28,450 28,476 28,637 28,844 41 Policy loans 52,961 54,063 54,489 54,438 54,439 54,384 54,320 54,300 54,238 54,225 54,142 54,121 42 Other assets 48,571 54,046 60,528 62,667 62,556 63,232 65,171 64,853 65,401 66,629 57,313 68,161 Credit unions9 43 Total assets/liabilities and capital. 69,585 81,961 96,183 98,646 101,268 104,992 106,783 107,991 111,150 113,016 114,783 117,029 118,010 44 Federal 45,493 54,482 65,989 67,799 68,903 71,342 72,021 72,932 74,869 75,567 76,415 77,829 77,861 45 State 24,092 27,479 30,194 30,847 32,365 33,650 34,762 35,059 36,281 37,449 38,368 39,200 40,149 46 Loans outstanding 43,232 50,083 62,393 62,936 64,341 65,298 66,817 67,662 69,171 70,765 71,811 72,404 73,513 47 Federal 27,948 32,930 42,283 42,804 43,414 44,042 44,707 44,963 46,036 46,702 47,065 47,538 47,933 48 State 15,284 17,153 20,110 20,132 20,927 21,256 22,110 22,699 23,135 24,063 24,746 24,866 25,580 49 Savings 62,990 74,739 86,048 88,560 91,275 95,278 96,702 98,026 99,834 101,318 103,677 105,384 105,963 50 Federal (shares) 41,352 49,889 59,914 61,758 62,867 66,680 66,243 67,070 68,087 68,592 70,063 71,117 70,926 51 State (shares and deposits).... 21,638 24,850 26,134 26,802 28,408 28,598 30,459 30,956 31,747 32,726 33,614 34,267 35,037 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A23 NOTES TO TABLE 1.37 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all associa- 2. Includes net undistributed income accrued by most associations. tions in the United States. Data are based on monthly reports of federally insured 3. As of July 1985, data include loans in process. associations. Even when revised, data for current and preceding year are subject 4. The National Council reports data on member mutual savings banks and on to further revision. savings banks that have converted to stock institutions, and to federal savings Savings banks: Estimates of National Council of Savings Institutions for all banks. savings banks in the United States. 5. Excludes checking, club, and school accounts. Life insurance companies: Estimates of the American Council of Life Insurance 6. Direct and guaranteed obligations. Excludes federal agency issues not for all life insurance companies in the United States. Annual figures are annualguaranteed, which are shown in the table under "Business" securities. statement asset values, with bonds carried on an amortized basis and stocks at 7. Issues of foreign governments and their subdivisions and bonds of the year-end market value. Adjustments for interest due and accrued and for International Bank for Reconstruction and Development. differences between market and book values are not made on each item separately 8. Data for December 1984 through April 1985 have been revised. but are included, in total, in "other assets." 9. As of June 1982, data include federally chartered or federally insured, state- Credit unions: Estimates by the National Credit Union Administration for a chartered credit unions serving natural persons. Before that date, data were group of federal and federally insured state credit unions serving natural persons. estimates of all credit unions. Figures are preliminary and revised annually to incorporate recent data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A28 Domestic Nonfinancial Statistics • April 1986 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 1984 1985 1985 1986 11998833 11998844 11998855 H2 HI H2 Nov. Dec. Jan. U.S. budget 1 Receipts 600,562 666,457 733,996 341,393 380,619 364,791 51,163 68,193 76,710 2 Outlays 795,917 841,800 936,809 446,949 463,735 488,740 84,763 84,079 82,849 3 Surplus, or deficit (-) -195,355 -175,343 -202,813 -105,557 -83,115 -123,950 -33,601 -15,886 -6,140 4 Trust funds 23,056 30,565 53,540 31,473 22,592 30,278 -1,420 15,268 1,710 5 Federal funds' -218,410 -205,908 -256,353 -137,032 -105,707 -154,229 -32,181 -31,155 -7,849 Off-budget entities (surplus, or deficit (-))2 6 Federal Financing Bank outlays -10,404 -7,277 -7,339 -1,913 -6,274 -529 -322 1,020 -188 7 Other3 -1,953 -2,719 -1,779 -77 -1,567 -545 537 210 -163 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 -33,386 -14,656 -6,492 Source of financing 9 Borrowing from the public 212,425 170,817 197,269 118,209 87,054 136,567 45,863 33,261 12,660 10 Cash and monetary assets (decrease, or increase (-))4 -9,889 5,636 10,673 -16,683 -6,479 -10,428 -8,671 -21,020 -9,503 11 Other5 5,176 8,885 3,989 7,948 9,978 1,117 -3,806 2,415 3,334 MEMO 12 Treasury operating balance (level, end of period) 37,057 22,345 17,060 17,649 24,013 30,935 10,051 30,935 40,215 13 Federal Reserve Banks 16,557 3,791 4,174 5,316 3,288 9,351 2,294 9,351 16,228 14 Tax and loan accounts 20,500 18,553 12,886 12,333 20,725 21,584 7,757 21,584 23,987 1. Half-year figures are calculated as a residual (total surplus/deficit less trust 5. Includes accrued interest payable to the public; allocations of special fund surplus/deficit). drawing rights; deposit funds; miscellaneous liability (including checks outstand- 2. The recently enacted Gramm-Rudman legislation folds the unified and ing) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S. previously off-budget outlays into a total outlays and total deficit framework. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and However, the latest "Monthly Treasury Statement" continues to distinguish profit on the sale of gold. between the old unified and off-budget spending categories. 3. Other off-budget includes Postal Service Fund; Rural electrification and SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. telephone revolving fund; Rural Telephone Bank; Synthetic fuels corporation Government," "Daily Treasury Statement," and the Budget of the U.S. Governfund; U.S. Railway Association; and petroleum acquisition and transportation ment, Fiscal Year 1987. and strategic petroleum reserve effective November 1981. 4. Includes U.S. Treasury operating cash accounts; SDRs; reserve position on the U.S. quota in the IMF; loans to International Monetary Fund; and other cash and monetary assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1984 1985 1985 1986 111999888444 111999888555''' HI H2 HI H2 Nov. Dec. Jan. RECEIPTS 1 All sources 666,457 733,996 341,808 341,392 380,618 364,790 51,162 68,193 76,710 ? Individual income taxes, net 295,960 330,918 144,691 157,229 166,852 169,987 23,399 30,193 40,150 3 Withheld 279,350 298,941 140,657 145,210 149,288 155,725 23,416 28,568 26,146 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 1,269 2,448 14,484 6 Refunds 64,770 65,743 57,458 7,387 58,684 8,038 1,286 822 480 Corporation income taxes 7 74,179 77,413 40,328 35,190 42,193 36,528 22,,336644 1133,,110088 33,,558888 8 Refunds 17,286 16,082 10,045 6,847 8,370 7,751 973 821 763 9 Social insurance taxes and contributions, net 241,902 268,805 131,372 118,690 144,528 128,017 2200,,115511 19,662 2266,,998833 1100 Employment taxes and contributions1 212,180 238,288 114,102 105,624 125,969 111166,,227766 1177,,447788 1199,,001122 2255,,336633 11 Self-employment taxes and 8,709 10,468 7,667 1,086 99,,448822 998855 00 00 773377 1? Unemployment insurance 25,138 25,758 14,942 10,706 16,213 9,281 2,241 221 1,211 13 Other net receipts3 4,580 4,759 2,329 2,360 2,350 2,458 432 429 408 14 37,361 35,865 18,304 18,961 17,259 18,470 3,211 3,017 3,167 IS Customs deposits 11,370 12,079 5,576 6,329 5,807 6,354 1,028 1,008 1,097 16 Estate and gift taxes 6,010 6,422 3,102 3,029 3,204 3,323 564 514 587 17 Miscellaneous receipts4 16,965 18,576 8,481 8,812 9,144 9,861 1,419 1,511 1,901 OUTLAYS 18 All types 851,781r 946,323 420,700 446,943 463,842 488,739 84,763 84,079 82,849 19 National defense 227,413' 252,748 114,639 118,286 124,186 134,675 21,971 23,915 20,945 70 International affairs 15,876' 16,176 5,426 8,550 6,675 8,367 831 1,121 550 71 General science, space, and technology ... 8,317' 8,627 3,981 4,473 4,230 4,727 697 853 689 ?? 7,086' 5,685 1,080 1,423 680 3,305 480 384 248 ?3 Natural resources and environment 12,593' 13,357 5,463 7,370 5,892 7,553 1,088 1,306 1,216 24 Agriculture 13,613' 25,565 7,129 8,524 11,705 15,412 4,307 4,407 3,270 ?5 Commerce and housing credit 6,917' 4,229 2,572 2,663 -260 644 -194 -33 280 76 Transportation 23,669' 25,838 10,616 13,673 11,440 15,360 2,667 2,387 2,025 27 Community and regional development .... 7,673' 7,680 3,154 4,836 3,408 3,901 661 615 603 78 Education, training, employment, social services 27,579' 29,342 13,445 13,737 14,149 1144,,448811 22,,777766 22,,005588 22,,666666 79 Health 30,417' 33,542 15,551 15,692 16,945 17,237 2,780 2,799 3,174 30 Social security and medicare 235,764 254,446 119,420 119,613 128,351 129,037 21,326 21,502 22,399 31 Income security 112,668' 128,200 58,684 61,558 65,246 59,435 10,791 10,022 10,778 3? Veterans benefits and services 25,614 26,352 12,849 13,317 11,956 14,527 3,302 2,418 2,077 33 Administration of justice 5,660 6,277 2,807 2,992 3,016 3,212 441 587 646 34 General government 5,053' 5,228 2,462 2,552 2,857 3,634 600 1,287 313 35 General-purpose fiscal assistance 6,768' 6,353 2,943 3,458 2,659 3,391 74 45 1,163 36 Net interest5 111,058 129,436 54,748 61,293 65,143 67,448 12,312 11,287 12,364 37 Undistributed offsetting receipts6 -31,957 -32,759 -16,270 -17,061 -14,436 -17,953 -2,146 -2,881 -2,557 1. Old-age, disability, and hospital insurance, and railroad retirement accounts. 5. Net interest function includes interest received by trust funds. 2. Old-age, disability, and hospital insurance. 6. Consists of rents and royalties on the outer continental shelf and U.S. 3. Federal employee retirement contributions and civil service retirement and government contributions for employee retirement. disability fund. 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. receipts. Government," and the Budget of the U.S. Government, Fiscal Year 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A30 Domestic Nonfinancial Statistics • April 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 Ql 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 7 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 6.6 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 77.0 13 Government account series3 185.1 196.7 205.4 231.9 286.2 292.2 311.0 313.9 14 Non-interest-bearing debt 1.3 1.4 1.6 9.8 2.3 15.5 14.8 2.1 By holder* 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 74 Other securities 44.6 42.7 48.2 61.9 69.3 69.7 72.0 73.1 75 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 Transactions' Par value; averages of daily figures, in millions of dollars 1985 1986 1985 and 1986 week ending Wednesday IItteemm 11998822 11998833 11998844 Nov/ Dec/ Jan. Dec. 25' Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Immediate delivery2 1 U.S. government securities 42,135 52,778 75,321 91,956 80,815 89,129 73,706 59,820 84,068 8888,,332244 9911,,558844 9900,,009999 By maturity ? Bills 42,393 26,035 32,894 35,971 31,590 36,033 30,139 30,902 30,811 34,067 42,554 3388,,229933 3 Other within 1 year 708 1,305 1,809 1,961 2,218 2,082 1,883 2,750 3,191 2,167 1,455 1,434 4 1-5 years 8,758 11,733 18,359 21,275 20,031 20,576 20,255 12,615 16,983 19,375 19,225 22,544 5 5-10 years 5,279 7,606 12,702 18,811 14,785 17,335 11,388 7,175 20,275 18,528 15,662 15,461 6 Over 10 years 4,997 6,099 9,556 13,939 12,191 13,103 10,042 6,378 12,806 14,187 12,687 12,367 By type of customer 7 U.S. government securities dealers 2,257 2,919 3,336 3,132 2,843 3,123 2,579 3,494 3,556 2,582 2,511 22,,775588 8 U.S. government securities brokers 21,045 25,580 36,223 43,621 38,009 46,040 33,193 23,859 40,585 47,643 49,735 4466,,002288 9 All others3 18,833 24,278 35,762 45,203 39,963 39,966 37,934 32,467 39,927 38,099 39,337 41,312 10 Federal agency securities 5,576 7,846 11,638 15,299 15,299 13,655 15,055 8,432 11,802 19,440 11,893 11,628 11 Certificates of deposit 4,333 4,947 4,015 3,096 3,795 4,503 3,203 3,194 5,037 4,813 4,262 4,223 17 Bankers acceptances 2,642 3,243 3,242 2,651 2,862 3,191 2,314 2,231 3,234 3,132 3,406 3,121 13 Commercial paper 8,036 10,018 12,716 14,703 16,571 17,792 15,236 16,573 19,144 17,929 17,396 16,670 Futures transactions4 14 Treasury bills 6,655 6,947 5,557 4,991 4,879 4,484 4,167 2,140 2,654 3,763 6,014 55,,220033 15 Treasury coupons 2,501 4,503 6,065 7,429 6,768 8,135 4,984 3,215 6,759 10,370 9,151 6,615 16 Federal agency securities 265 262 240 467 229 41 180 133 213 37 13 10 Forward transactions5 17 U.S. government securities 1,493 1,364 1,281 1,759 1,313 1,302 1,579 1,126 1,278 1,312 1,128 11,,337733 18 Federal agency securities 1,646 2,843 3,856 5,671 6,163 6,121 5,2% 3,856 5,573 8,874 5,687 4,508 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 do 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
A32 Domestic Nonfinancial Statistics • April 1986 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1985 1986 1985 and 1986 week ending Wednesday Nov. Dec. Jan. Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 Positions Net immediate2 1 U.S. government securities 14,315' 14,082' 5,429' 17,493' 10,378' 8,657 5,678 6,235 7,226 8,857 11,823 ? Bills 8,226 10,800 5,500 17,498 14,062' 14,023 10,533 10,130 13,003 16,158 16,457 3 Other within 1 year 1,088 921 63 1,112 1,520 1,640 1,333 1,390 1,413 1,804 1,898 4 1-5 years 3,293 1,912 2,159 9,242 8,852' 9,779 10,652 10,316 8,366 8,188 11,574 5 5-10 years -318 -78 -1,119 -7,632' -10,999' -12,337 -13,709 -12,131 -11,659 -12,605 -12,552 6 Over 10 years 2,026 528 -1,174 -2,727 -3,057 -4,448 -3,131 -3,470 -3,897 -4,687 -5,554 7 Federal agency securities 4,169 7,313 15,294 26,485 33,144' 34,4% 36,006 36,120 36,424 34,211 32,388 8 Certificates of deposit 5,532 5,838 7,369 9,995' 10,630' 10,861 10,335 11,498 12,547 10,088 9,652 9 Bankers acceptances 2,832 3,332 3,874 5,525' 5,475' 4,666 4,934 4,538 4,381 4,553 4,983 10 Commercial paper 3,317 3,159 3,788 7,449 7,957 5,919 7,666 5,621 5,%5 6,278 5,819 Futures positions 11 Treasury bills -2,507 -4,125 -4,525 -15,857 -12,469 -14,656 -13,204 -13,7% -14,253 -15,609 -14,949 12 Treasury coupons -2,303 -1,033 1,794 2,584' 3,269' 3,965 3,169 3,361 3,644 4,040 4,612 13 Federal agency securities -224 171 233 -1,333 -1,050 -612 -1,255 -1,528 -461 -229 -280 Forward positions 14 U.S. government securities -788 -1,936 -1,643' -866' -388 -1,974 372 -1,355 -2,762 -2,622 -1,663 15 Federal agency securities -1,432 -3,561 -9,205 -11,106' -14,289' -12,151 -15,473 -14,950 -13,457 -11,321 -9,726 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 26,754 29,099 44,078 76,817 79,435 87,420 79,488 87,121 9922,,668844 86,697 84,763 17 Term agreements 48,247 52,493 68,357 96,966 99,204 100,046 106,867 95,613 97,620 101,130 104,458 Repurchase agreements5 18 Overnight and continuing 49,695 57,946 75,717 116,992 120,458 130,777 114,858 126,570 137,211 132,214 130,298 19 Term agreements 43,410 44,410 57,047 88,119 90,233 84,597 100,790 81,249 78,722 86,219 88,960 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 do 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 July Aug. Sept. Oct. Nov. Dec. 1 Federal and federally sponsored agencies 237,787 240,068 271,220 286,159 289,277 288,657 292,584 293,930 n.a. 2 Federal agencies 33,055 33,940 35,145 35,354 35,338 35,903 35,990 36,121 36,390 3 Defense Department1 354 243 142 93 89 82 79 75 71 4 Export-Import Bank2-3 14,218 14,853 15,882 15,746 15,744 15,419 15,417 15,417 15,678 5 Federal Housing Administration4 288 194 133 118 116 117 116 115 115 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 1,940 1,940 1,940 1,940 8 Tennessee Valley Authority 14,365 14,970 15,435 16,188 16,180 16,106 16,199 16,335 16,347 9 United States Railway Association6 194 111 51 74 74 74 74 74 74 10 Federally sponsored agencies7 204,732 206,128 236,075 250,805 253,939 252,754 256,594' 257,809 n.a. 11 Federal Home Loan Banks 55,967 48,930 65,085 70,244 71,949 72,384 73,260 73,840 74,447 12 Federal Home Loan Mortgage Corporation 4,524 6,793 10,270 13,197 13,393 12,720 13,239 11,016 n.a. 13 Federal National Mortgage Association8 70,052 74,594 83,720 90,208 91,318 91,693 92,578 94,576 93,896 14 Farm Credit Banks 73,004 72,816 71,193 70,069 70,092 68,287 69,274 69,933 68,851 15 Student Loan Marketing Association 2,293 3,402 5,745 7,087 7,187 7,670 8,243 8,444 8,395 MEMO 16 Federal Financing Bank debt 126,424 135,791 145,217 152,962 152,941 153,513 153,565 154,226' 153,373 Lending to federal and federally sponsored 17 Export-Import Bank3 14,177 14,789 15,852 15,729 15,729 15,409 15,409 15,409 15,670 18 Postal Service6 1,221 1,154 1,087 720 720 1,690 1,690 1,69C 1,690 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 14,463 14,455 14,381 14,474 14,610 14,622 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 63,546 63,779 64,169 63,969 64,189 6644,,223344 23 Rural Electrification Administration 17,157 19,766 20,693 21,364 21,463 21,676 21,792 21,826 20,654 24 Other 22,774 26,460 29,853 32,066 31,721 31,114 31,157 31,428 31,429 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 Farmers Home Adminis- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter tration; Department of Health, Education, and Welfare; Department of Housing contain loans guaranteed by numerous agencies with the guarantees of any and Urban Development; Small Business Administration; and the Veterans particular agency being generally small. The Farmers Home Administration item Administration. consists exclusively of agency assets, while the Rural Electrification Administra- 6. Off-budget. tion entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A34 Domestic Nonfinancial Statistics • April 1986 1.45 NEW SECURITY ISSUES State and Local Governments Millions of dollars 1985 Type of i o s r s u u e se o r issuer, 11998822 11998833 11998844 May June July Aug. Sept. Oct. Nov. Dec. 1 All issues, new and refunding1 79,138 86,421 106,641 14,097 11,801 12,268 15,239 13,345 20,780 32,144 52,640 Type of issue 2 General obligation 21,094 21,566 26,485 4,535 2,739 5,257 3,160 3,953 5,852 6,695 8,806 3 U.S. government loans2 225 96 16 2 0 0 0 0 0 0 0 4 Revenue 58,044 64,855 80,156 9,562 9,062 7,011 12,079 9,392 14,928 25,449 43,834 5 U.S. government loans2 461 253 17 0 1 6 2 0 6 7 0 Type of issuer 6 State 8,438 7,140 9,129 1,298 350 786 800 1,501 1,337 1,648 2,146 7 Special district and statutory authority 45,060 51,297 63,550 8,126 7,625 6,893 9,484 7,580 12,374 21,563 36,711 8 Municipalities, counties, townships, school districts 25,640 27,984 33,962 4,673 3,826 4,589 4,955 4,264 6,371 21,563 13,783 9 Issues for new capital, total 74,804 72,441 94,050 9,279 7,966 7,660 10,709 9,797 12,288 21,362 42,072 Use of proceeds 10 Education 6,482 8,099 7,553 1,169 962 797 1,194 1,317 1,518 1,954 3,965 11 Transportation 6,256 4,387 7,552 631 276 651 252 471 1,264 3,734 3,211 12 Utilities and conservation 14,259 13,588 17,844 1,478 1,844 720 1,987 1,358 2,924 3,266 6,708 13 Social welfare 26,635 26,910 29,928 3,454 2,956 3,155 4,283 3,989 4,305 8,672 18,887 14 Industrial aid 8,349 7,821 15,415 782 560 553 1,524 735 1,507 2,029 3,408 15 Other purposes 12,822 11,637 15,758 1,765 1,368 1,784 1,469 2,009 2,466 1,707 5,893 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 se o r issuer, 11998833 11998844 11998855 May June July Aug. Sept. Oct. Nov. Dec. p 1 All issues1 120,074 132,311 154,284 12,958 19,450 11,959 14,733 11,267 11,553' 13,543 18,901 2 Bonds2 68,495 109,683 119,161 9,800 15,710 8,752 11,337 8,796 9,229 10,888 14,304 Type of offering 3 Public 47,369 73,357 119,161 9,800 15,710 8,752 11,337 8,7% 9,229 10,888 14,304 4 Private placement 21,126 36,326 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 16,851 24,607 34,776 1,500 8,044 2,688 2,352 2,079 1,953 4,072 2,704 6 Commercial and miscellaneous 7,540 13,726 9,716 639 865 1,642 921 186 898 933 728 7 Transportation 3,833 4,694 3,032 357 512 76 459 177 348 125 187 8 Public utility 9,125 10,679 8,870 1,136 585 434 857 1,042 863 1,114 1,090 9 Communication 3,642 2,997 6,183 150 125 110 1,295 367 690 100 2,318 10 Real estate and financial 27,502 52,980 56,586 6,018 5,579 3,802 5,453 4,945 4,477 4,544 7,278 11 Stocks3 51,579 22,628 35,123 3,158 3,740 3,207 3,396 2,471 2,324' 2,655 4,597 Type 12 Preferred 7,213 4,118 6,430 634 726 631 754 653 406 782 833 13 Common 44,366 18,510 28,693 2,524 3,014 2,576 2,642 1,818 1,918' 1,873 3,764 Industry group 14 Manufacturing 14,135 4,054 5,625 504 558 605' 235 820 279 746 970 15 Commercial and miscellaneous 13,112 6,277 9,049 624 1,453 568' 1,293 507 403' 596 1,120 16 Transportation 2,729 589 1,544 33 236 0 127 107 113 21 200 17 Public utility 5,001 1,624 1,966 185 91 87 73 47 408 12 201 18 Communication 1,822 419 978 119 151 99 18 7 41 5 146 19 Real estate and financial 14,780 9,665 15,961 1,693 1,251 1,848' 1,650 983 1,080' 1,275 1,960 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 11998844 11998855 May June July Aug. Sept. Oct. Nov.' Dec. INVESTMENT COMPANIES1 1 Sales of own shares2 107,480 222,682 16,408 18,191 20,284 18,049 16,936 22,099 20,585 23,561 2 Redemptions of own shares3 77,032 132,432 10,069 9,836 11,502 10,837 9,963 10,653 11,138 18,334 3 Net sales 30,448 90,250 6,339 8,355 8,782 7,212 6,973 11,446 9,447 5,227 4 Assets4 137,126 251,536 178,275 186,284 195,707 201,608 203,210 218,720 237,410 251,536 5 Cash position5 12,181' 20,590 15,017 15,565 16,943 17,959 18,700 21,987 21,894 20,590 6 Other 124,945' 230,946 163,258 170,719 178,764 183,649 184,510 196,733 215,516 230,946 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 Ql 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
A36 Domestic Nonfinancial Statistics • April 1986 1.49 NONFINANCIAL CORPORATIONS Assets and Liabilities Billions of dollars, except for ratio 1984' 1985 AAccccoouunntt 11997799 11998800'' 11998811''"" 11998822'' 11998833'' Q3 Q4 Ql' Q2' Q3 1 Current assets 1,214.8 1,328.3 1,419.6 1,437.1 1,575.9 1,685.9 1,703.0 1,715.9 1,725.2 1,750.5 2 Cash 118.0 127.0 135.6 147.8 171.8 161.3 173.6 167.9 170.6 178.6 3 U.S. government securities 16.7 18.7 17.7 23.0 31.0 33.0 36.2 34.7 34.1 31.1 4 Notes and accounts receivable 459.0 507.5 532.5 517.4 583.0 639.1 633.1 647.4 648.5 653.2 5 Inventories 505.1 543.0 584.0 579.0 603.4 659.3 656.9 664.7 663.7 670.1 6 Other 116.0 132.1 149.7 169.8 186.7 193.2 203.2 201.1 208.3 217.4 7 Current liabilities 807.3 890.6 971.3 986.0 1,059.6 1,155.0 1,163.6 1,171.5 1,176.0 1,203.8 8 Notes and accounts payable 460.8 514.4 547.1 550.7 595.7 642.2 647.8 635.3 647.3 664.2 9 Other 346.5 376.2 424.1 435.3 463.9 512.9 515.8 536.2 528.7 539.5 10 Net working capital 407.5 437.8 448.3 451.1 516.3 530.8 539.5 544.4 549.3 546.7 11 MEMO: Current ratio1 1.505 1.492 1.462 1.458 1.487 1.460 1.464 1.465 1.467 1.454 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 • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1984 1985 1986 IInndduussttrryy 11998833 11998844 11998855 Q2 Q3 Q4 Ql Q2 Q3 Q41 Ql' 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 72.53 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 Sonmanufacturing 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 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 Public 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 AAccccoouunntt 11998811 11998822 11998833 Q2 Q3 Q4 Ql Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer 72.4 78.1 87.4 90.5 95.6 96.7 99.1 106.0 116.4 120.8 2 Business 100.3 101.4 113.4 124.4 124.5 135.2 142.1 144.6 141.4 152.8 Real estate 17.9 20.2 22.5 23.0 25.2 26.3 27.2 28.4 29.0 30.4 4 Total 190.5 199.7 223.4 238.0 245.3 258.3 268.5 279.0 286.5 304.0 Less: Reserves for unearned income 30.0 31.9 33.0 33.9 36.0 36.5 36.6 38.6 41.0 40.9 6 Reserves for losses 3.2 3.5 4.0 4.4 4.3 4.4 4.9 4.8 4.9 5.0 7 Accounts receivable, net 157.3 164.3 186.4 199.6 205.0 217.3 227.0 235.6 240.6 258.1 8 All other 27.1 30.7 34.0 35.8 36.4 35.4 35.9 39.5 46.3 46.8 9 Total assets 184.4 195.0 220.4 235.4 241.3 252.7 262.9 275.2 286.9 304.9 LIABILITIES 10 Bank loans 16.1 18.3 18.7 18.3 19.7 21.3 19.8 18.5 18.2 21.0 11 Commercial paper 57.2 51.1 59.7 68.5 66.8 72.5 79.1 82.6 93.6 96.9 Debt 12 Other short-term 11.3 12.7 13.9 15.5 16.1 16.2 16.8 16.6 16.6 17.2 13 Long-term 56.0 64.4 68.1 69.7 73.8 77.2 78.3 85.7 86.4 93.0 14 All other liabilities 18.5 21.2 30.1 32.1 32.6 33.1 35.4 36.9 36.6 39.6 15 Capital, surplus, and undivided profits 25.3 27.4 29.8 31.4 32.3 32.3 33.5 34.8 35.7 37.1 16 Total liabilities and capital 184.4 195.0 220.4 235.4 241.3 252.7 262.9 275.2 286.9 304.9 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 DDDeeeccc... 333111,,, 111999888555111 Oct. Nov. Dec. Oct. Nov. Dec. Oct. Nov. Dec. 1 Total 152,761 5,112 2,181 2,129 31,099 29,341 29,677 25,987 27,160 27,548 Retail financing of installment sales 2 Automotive (commercial vehicles) 14,339 586 199 -76 1,441 1,081 820 855 882 896 3 Business, industrial, and farm equipment 20,555 -46 -185 527 1,222 1,202 1,365 1,268 1,387 838 Wholesale financing 4 Automotive 23,333 3,716 1,358 2,277 12,252 10,747 11,813 8,536 9,389 9,536 5 Equipment 4,235 32 63 -265 494 591 536 462 528 801 6 All other 7,322 45 267 156 1,815 1,861 1,799 1,770 1,594 11,,664433 Leasing 7 Automotive 15,254 417 -832 -109 972 700 719 555 1,532 828 8 Equipment 40,116 381 574 -15 1,178 1,754 1,6% 797 1,180 1,711 9 Loans on commercial accounts receivable and factored commercial accounts receivable 15,685 -662 526 -348 9,749 10,182 9,502 10,411 9,656 9,850 10 All other business credit 11,922 643 211 -18 1,976 1,223 1,427 1,333 1,012 1,445 1. Not seasonally adjusted. NOTE. These data also appear in the Board's G.20 (422) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A38 Domestic Nonfinancial Statistics • April 1986 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1985 1986 IItteemm 11998822 11998833 11998844 July Aug. Sept. Oct. Nov. Dec. Jan. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 92.8 96.8 104.1 119.2 104.4 104.6 104.1 107.5 111.5 110.1 2 Amount of loan (thousands of dollars) 69.5 73.7 77.4 89.4 74.4 76.7 77.1 78.5 80.3 78.9 3 Loan/price ratio (percent) 77.1 78.7 77.1 77.5 74.6 76.0 76.0 75.5 75.0 74.3 4 Maturity (years) 26.7 27.8 26.9 27.5 24.5 26.7 26.7 26.4 26.7 25.6 5 Fees and charges (percent of loan amount)2 2.40 2.64 2.53 2.24 2.46 2.62 2.49 2.57 2.59 2.53 6 Contract rate (percent per annum) 12.20 11.87 11.12 10.94 10.78 10.69 10.64 10.55 10.47 10.38 Yield (percent per annum) 1 FHLBB series5 12.66 12.37 11.58 11.34 11.24 11.17 11.09 11.01 10.94 10.87 8 HUD series4 13.43 13.80 12.28 12.09 12.06 12.02 11.86 11.56 11.03 10.82 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 13.11 13.81 12.24 12.12 11.99 12.04 11.87 11.28 10.70 10.78 10 GNMA securities6 12.25 13.13 11.61 11.48 11.24 11.29 11.16 10.81 10.39 10.25 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 74,847 83,339 94,574 95,634 %,324 %,769 97,228 97,807 98,282 98,671 12 FHA/VA-insured 37,393 35,148 34,244 34,276 34,177 34,084 33,885 33,828 33,684 33,583 13 Conventional 37,454 48,191 60,331 61,359 62,147 62,685 63,343 63,979 64,598 65,088 Mortgage transactions (during period) 14 Purchases 17,554 16,721 21,510 1,918 1,921 1,739 1,767 1,624 1,663 1,188 15 Sales 3,528 978 1,301 251 230 101 200 100 319 0 Mortgage commitments1 16 Contracted (during period) 18,607 21,007 20,155 1,583 1,797 1,638 1,733 1,199 1,858 1,315 17 Outstanding (end of period) 5,461 6,384 3,402 4,517 4,245 3,974 3,840 3,330 3,402 3,211 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 18 Total 5,9% 9,283 n.a. 12,844 13,521 13,088 13,025 13,194 n.a. n.a. 19 FHA/VA 974 910 n.a. 842 835 829 823 816 n.a. n.a. 20 Conventional 5,022 8,373 n.a. 12,002 12,686 12,259 12,202 12,378 n.a. n.a. Mortgage transactions (during period) 21 Purchases 23,089 21,886 n.a. 4,626 3,602 4,219 3,215 3,680 n.a. n.a. 22 Sales 19,686 18,506 n.a. 4,200 2,682 4,501 3,076 3,449 n.a. n.a. Mortgage commitments9 23 Contracted (during period) 32,852 32,603 n.a. 3,259 3,958 2,919 3,995 4,854 n.a. n.a. 24 Outstanding (end of period) 16,964 13,318 n.a. 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 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. Any gaps in data are due to periods of adjustment to changes in securities swap programs, while the corresponding data for FNMA exclude swap maximum permissible contract rates. activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Real Estate A39 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1984' 1985 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998833 11998844'' 11998855'' Q4 Ql' Q2' Q3' Q4 1 AU holders 1,811,540 2,022,828 2,248,501 2,022,828 2,068,845 2,127,640 2,187,562 2,248,501 ? 1- to 4-family 1,189,811 1,319,416 1,467,231 1,319,416 1,347,580 1,385,637 1,426,048 1,467,231 3 Multifamily 158,718 178,817 202,891 178,817 183,660 189,917 195,393 202,891 4 Commercial 350,389 412,958 471,279 412,958 426,040 441,355 457,353 471,279 5 112,622 111,637 107,100 111,637 111,565 110,731 108,768 107,100 6 Selected financial institutions 1,130,781 1,267,488 1,385,494 1,267,488 1,289,271 1,321,054 1,353,438 1,385,530 7 Commercial banks1 330,521 374,780 423,003 374,780 383,598 396,141 410,653 423,003 8 1- to 4-family 182,514 196,540 214,340 196,540 198,849 203,654 209,724 214,340 9 Multifamily 18,410 20,216 22,906 20,216 20,609 21,544 22,239 22,906 10 Commercial 120,210 147,845 174,336 147,845 153,827 160,315 167,603 174,336 11 Farm 9,387 10,179 11,421 10,179 10,313 10,628 11,087 11,421 1? Savings banks 131,940 154,441 177,193 154,441 161,032 165,705 174,012 177,193 13 1- to 4-family 93,649 107,302 122,136 107,302 111,592 114,375 119,552 122,136 14 Multifamily 17,247 19,817 23,236 19,817 20,668 21,357 22,552 23,236 IS Commercial 21,016 27,291 31,743 27,291 28,741 29,942 31,791 31,743 16 Farm 28 31 78 31 31 31 117 78 17 Savings and loan associations 494,789 555,277 587,045 555,277 559,263 569,291 575,829 587,045 18 1- to 4-family 387,924 421,489 430,876 421,489 421,024 425,021 426,294 430,876 19 Multifamily 44,333 55,750 66,467 55,750 57,660 60,231 62,478 66,467 20 Commercial 62,403 77,605 89,126 77,605 80,070 83,447 86,369 89,126 7,1 Life insurance companies 150,999 156,699 167,887 156,699 158,162 161,485 163,929 167,887 77 1- to 4-family 15,319 14,120 13,499 14,120 13,840 13,562 13,382 13,499 73 Multifamily 19,107 18,938 19,453 18,938 18,964 18,983 18,972 19,453 74 Commercial 103,831 111,175 122,925 111,175 113,187 116,812 119,543 122,925 25 Farm 12,742 12,466 12,010 12,466 12,171 12,128 12,032 12,010 26 Finance companies2 22,532 26,291 30,402 26,291 27,216 28,432 29,015 30,402 7,7 Federal and related agencies 148,328 158,993 166,764 158,993 163,531 165,912 166,248 166,764 78 Government National Mortgage Association 3,395 2,301 1,473 2,301 1,964 1,825 1,640 1,473 79 1- to 4-family 630 585 539 585 576 564 552 539 30 Multifamily 2,765 1,716 934 1,716 1,388 1,261 1,088 934 31 Farmers Home Administration 2,141 1,276 733 1,276 1,062 790 577 733 3? 1- to 4-family 1,159 213 183 213 156 223 185 183 33 Multifamily 173 119 113 119 82 136 139 113 34 Commercial 409 497 159 497 421 163 72 159 35 Farm 400 447 278 447 403 268 181 278 36 Federal Housing and Veterans Administration 4,894 4,816 4,903 4,816 4,878 4,888 4,918 4,903 37 1- to 4-family 1,893 2,048 2,246 2,048 2,181 2,199 2,251 2,246 38 Multifamily 3,001 2,768 2,657 2,768 2,697 2,689 2,667 2,657 39 Federal National Mortgage Association 78,256 87,940 98,282 87,940 91,975 94,777 96,769 98,282 40 1- to 4-family 73,045 82,175 91,966 82,175 86,129 88,788 90,590 91,966 41 Multifamily 5,211 5,765 6,316 5,765 5,846 5,989 6,179 6,316 4? Federal Land Banks 52,010 52,261 48,129 52,261 52,104 51,056 49,255 48,129 43 1- to 4-family 3,081 3,074 2,829 3,074 3,064 3,006 2,895 2,829 44 Farm 48,929 49,187 45,300 49,187 49,040 48,050 46,360 45,300 45 Federal Home Loan Mortgage Corporation 7,632 10,399 13,244 10,399 11,548 12,576 13,089 13,244 46 1- to 4-family 7,559 9,654 11,208 9,654 10,642 11,288 11,457 11,208 47 Multifamily 73 745 2,036 745 906 1,288 1,632 2,036 48 Mortgage pools or trusts3 285,073 332,057 413,913 332,057 347,793 365,748 388,948 413,913 49 Government National Mortgage Association 159,850 179,981 212,145 179,981 185,954 192,925 201,026 212,145 50 1- to 4-family 155,950 175,589 207,198 175,589 181,419 188,228 196,198 207,198 51 Multifamily 3,900 4,392 4,947 4,392 4,535 4,697 4,828 4,947 52 Federal Home Loan Mortgage Corporation 57,895 70,822 99,088 70,822 76,759 83,327 91,915 99,088 53 1- to 4-family 57,273 70,253 98,182 70,253 75,781 82,369 90,997 98,182 54 Multifamily 622 569 906 569 978 958 918 906 55 Federal National Mortgage Association 25,121 36,215 54,987 36,215 39,370 42,755 48,769 54,987 56 1- to 4-family 25,121 35,965 54,036 35,965 38,772 41,985 47,857 54,036 57 Multifamily n.a. 250 951 250 598 770 912 951 58 Farmers Home Administration 42,207 45,039 47,693 45,039 45,710 46,741 47,238 47,693 59 1- to 4-family 20,404 21,813 22,186 21,813 21,928 21,962 22,090 22,186 60 Multifamily 5,090 5,841 6,675 5,841 6,041 6,377 6,415 6,675 61 Commercial 7,351 7,559 8,189 7,559 7,681 8,014 8,192 8,189 62 Farm 9,362 9,826 10,643 9,826 10,060 10,388 10,541 10,643 63 Individual and others4 247,358 264,290 282,510 264,290 268,250 274,926 278,928 282,294 64 1- to 4-family 141,758 152,305 165,405 152,305 154,411 159,981 163,009 165,405 65 Multifamily 38,786 41,931 45,294 41,931 42,688 43,637 44,374 45,294 66 Commercial 35,169 40,986 44,801 40,986 42,113 42,662 43,783 44,801 67 Farm 31,645 29,068 26,794 29,068 29,038 28,646 27,762 26,794 1. Includes loans held by nondeposit trust companies but not bank trust 4. Other holders include mortgage companies, real estate investment trusts, departments. state and local credit agencies, state and local retirement funds, noninsured 2. Previously included in "Individuals and others." Assumed to be entirely 1- pension funds, credit unions, and other U.S. agencies. to 4-family loans. NOTE. Based on data from various institutional and governmental sources, with 3. Outstanding principal balances of mortgages backing securities insured or some quarters estimated in part by the Federal Reserve. Multifamily debt refers to guaranteed by the agency indicated. loans on structures of five or more units. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A40 Domestic Nonfinancial Statistics • April 1986 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1985 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998833 11998844 Apr. May June July Aug. Sept. Oct. Nov/ Dec. Amounts outstanding (end of period) 1 Total 383,701 460,500 479,935 488,666 495,813 503,834 512,393 524,698 531,896' 537,215 549,903 By major holder 2 Commercial banks 171,978 212,391 223,850 226,973 229,676 232,913 236,390 241,030 243,573 245,987 251,247 3 Finance companies 87,429 96,747 101,324 104,130 105,971 107,985 110,378 116,422 118,846 119,632 120,842 4 Credit unions 53,471 67,858 71,418 72,381 73,468 74,614 75,689 76,447 77,474' 78,035 79,129 5 Retailers2 37,470 40,913 37,091 37,472 37,548 37,399 37,481 37,421 37,784 38,905 42,846 6 Savings and loans 23,108 29,945 33,514 34,754 35,901 37,301 38,496 39,421 40,281 40,728 41,644 7 Gasoline companies ... 4,131 4,315 3,834 3,918 4,075 4,316 4,467 4,346 4,241 4,145 4,304 8 Mutual savings banks.. 6,114 8,331 8,904 9,038 9,174 9,306 9,492 9,611 9,697 9,783 9,891 By major type of credit 9 Automobile 143,114 172,589 183,558 187,795 191,315 194,678 197,768 205,102 208,265' 209,102 210,492 10 Commercial banks... 67,557 85,501 90,915 92,403 94,099 95,763 96,576 98,042 98,604 98,826 99,270 11 Credit unions 25,574 32,456 34,159 34,620 35,139 35,687 36,201 36,563 37,054' 37,322 37,845 12 Finance companies .. 49,983 54,632 58,484 60,772 62,077 63,228 64,991 70,497 72,607 72,954 73,377 13 Revolving 81,977 101,555 101,887 103,492 104,333 105,539 107,584 109,941 111,919 114,927 123,073 14 Commercial banks... 44,184 60,549 65,127 66,311 66,956 68,093 69,949 72,514 74,255 76,310 80,575 15 Retailers 33,662 36,691 32,926 33,263 33,302 33,130 33,168 33,081 33,423 34,472 38,194 16 Gasoline companies . 4,131 4,315 3,834 3,918 4,075 4,316 4,467 4,346 4,241 4,145 4,304 17 Mobile home 23,862 24,556 24,675 24,925 25,205 25,545 25,826 26,043 26,200' 26,243 26,440 18 Commercial banks... 9,842 9,610 9,432 9,445 9,480 9,493 9,550 9,600 9,598 9,598 9,574 19 Finance companies .. 9,547 9,243 8,992 9,016 9,061 9,146 9,163 9,170 9,177' 9,141 9,200 20 Savings and loans ... 3,906 4,985 5,496 5,699 5,887 6,117 6,313 66,,446655 6,606 6,679 6,829 21 Credit unions 567 718 755 765 777 789 800 880088 819' 825 837 22 Other 134,748 161,800 169,815 172,454 174,960 178,072 181,215 185,612 185,512' 186,943 189,898 23 Commercial banks... 50,395 56,731 58,376 58,814 59,141 59,564 60,315 60,874 61,116 61,253 61,828 24 Finance companies .. 27,899 32,872 33,848 34,342 34,833 35,611 36,224 36,755 37,062 37,537 38,265 25 Credit unions 27,330 34,684 36,504 36,996 37,552 38,138 38,688 39,076 39,601' 39,888 40,447 26 Retailers 3,808 4,222 4,165 4,209 4,246 4,269 4,313 4,340 4,361 4,433 4,652 27 Savings and loans ... 19,202 24,960 28,018 29,055 30,014 31,184 32,183 32,956 33,675 34,049 34,815 28 Mutual savings banks 6,114 8,331 8,904 9,038 9,174 9,306 9,492 9,611 9,697 9,783 9,891 Net change (during period) 29 Total 48,742 76,799 8,270 9,042 5,227 6,247 5,726 11,531 8,417' 4,792 5,142 By major holder 30 Commercial banks 19,488 40,413 3,853 4,108 1,690 1,824 1,764 3,748 2,863 3,144 1,482 31 Finance companies 18,572 18,636 1,885 2,373 1,218 1,629 2,371 6,407 3,140 550 897 32 Credit unions 6,218 14,387 1,215 673 797 1,149 479 374 1,471' 466 1,102 33 Retailers2 5,075 3,443 168 341 -31 112 -99 -27 97 245 362 34 Savings and loans 7,285 6,837 1,063 1,327 1,417 1,338 969 924 620 335 976 35 Gasoline companies ... 68 184 -45 59 -51 21 103 -43 62 30 170 36 Mutual savings banks .. 1,322 2,217 131 161 187 174 139 148 164 22 153 By major type of credit 37 Automobile 16,856 29,475 3,488 3,792 2,686 2,365 2,206 7,204 3,794' 1,116 1,396 38 Commercial banks... 8,002 17,944 1,546 1,589 1,488 1,025 136 1,048 494 304 190 39 Credit unions 2,978 6,882 580 325 380 550 226 180 705' 229 520 40 Finance companies .. 11,752 9,298 1,362 1,878 818 790 1,844 5,976 2,595 583 686 41 Revolving 12,353 19,578 2,126 2,429 -73 856 936 1,974 2,042 2,615 1,323 42 Commercial banks... 7,518 16,365 2,003 2,095 42 733 968 2,071 1,908 2,386 875 43 Retailers 4,767 3,029 168 275 -64 102 -135 -54 72 199 278 44 Gasoline companies . 68 184 -45 59 -51 21 103 -43 62 30 170 45 Mobile home 1,452 694 218 186 196 324 199 168 181' 1 339 46 Commercial banks... 237 -232 19 -21 -31 -22 3 61 13 9 78 47 Finance companies .. 776 -608 13 -19 1 74 -13 -19 32 -12 59 48 Savings and loans ... 763 1,079 175 219 217 261 204 121 122 0 189 49 Credit unions 64 151 11 7 9 11 12 5 14' 4 13 50 Other 18,081 27,052 2,438 2,635 2,418 2,702 2,385 2,185 2,400' 1,060 2,084 51 Commercial banks... 3,731 6,336 285 445 191 88 657 568 448 445 339 52 Finance companies .. 6,044 9,946 510 514 399 765 540 450 513 -21 152 53 Credit unions 3,176 7,354 624 341 408 588 248 189 752' 233 569 54 Retailers 308 414 0 66 33 10 36 27 25 46 84 55 Savings and loans ... 6,522 5,758 888 1,108 1,200 1,077 765 803 498 335 787 56 Mutual savings banks 1,322 2,217 131 161 187 174 139 148 164 22 153 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 11998833 11998844 11998855 June July Aug. Sept. Oct. Nov. Dec. INTEREST RATES Commercial banks1 1 48-month new car2 13.92 13.71 n.a. n.a. n.a. 12.72 n.a. n.a. 12.39 n.a. 2 24-month personal 16.50 16.47 n.a. n.a. n.a. 15.84 n.a. n.a. 15.61 n.a. 3 120-month mobile home2 16.08 15.58 n.a. n.a. n.a. 14.72 n.a. n.a. 14.66 n.a. 4 Credit card 18.78 18.77 n.a. n.a. n.a. 18.62 n.a. n.a. 18.57 n.a. Auto finance companies 5 New car 12.58 14.62 n.a. 12.06 12.46 10.87 8.84 9.97 11.71 12.52 6 Used car 18.74 17.85 n.a. 17.77 17.49 17.57 17.31 17.21 17.28 17.22 OTHER TERMS3 Maturity (months) 7 New car 45.9 48.3 n.a. 51.3 51.7 51.1 51.2 51.5 52.0 52.1 8 Used car 37.9 39.7 n.a. 41.3 41.5 41.6 41.4 41.4 41.5 41.4 Loan-to-value ratio 9 New car 86 88 n.a. 91 91 91 92 93 92 92 10 Used car 92 92 n.a. 94 95 95 95 95 95 95 Amount financed (dollars) 11 New car 8,787 9,333 n.a. 9,965 10,355 10,422 10,449 10,498 10,205 9,925 12 Used car 5,033 5,691 n.a. 6,116 6,146 6,139 6,097 6,091 6,167 6,255 1. Data for midmonth of quarter only. 3. At auto finance companies. 2. Before 1983 the maturity for new car loans was 36 months, and for mobile NOTE. These data also appear in the Board's G.19 (421) release. For address, home loans was 84 months. see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A42 DomesticN onfinancial Statistics • April 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 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 istrument 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 3S .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 -25.5 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. 1984 Transaction category, or sector 1981 1982 H2 HI H2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 388.7 398.3 538.9 508.8 By public agencies and foreign 2 Total net advances 75.2 97.1 97.7 114.1 117.5 142.2 127.1 120.2 114.7 123.2 3 U.S. government securities -6.3 15.8 17.1 22.7 27.6 36.0 35.7 40.7 14.4 29.5 4 Residential mortgages 35.8 31.7 23.5 61.0 76.1 56.5 74.5 80.2 72.1 52.8 5 FHLB advances to savings and loans 9.2 7.1 16.2 -7.0 15.7 -9.5 -12.1 -2.0 15.9 6 Other loans and securities 36.5 42.5 40.9 20.8 34.1 26.5 11.5 30.2 25.1 Total advanced, by sector 7 U.S. government 19.0 23.7 24.0 15.9 9.7 17.2 17.1 9.1 10.3 7.9 8 Sponsored credit agencies 53.1 45.6 48.2 65.5 69.8 73.3 69.1 68.6 71.0 73.6 9 Monetary authorities 7.7 4.5 9.2 9.8 10.9 8.4 15.7 15.6 6.2 11.9 10 Foreign -4.5 23.3 16.2 22.8 27.1 43.4 25.3 27.0 27.2 29.9 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools . 47.9 44.8 47.4 64.9 67.8 74.9 69.7 66.2 69.4 69.6 12 Foreign 20.2 27.2 27.2 15.7 18.9 1.7 21.2 15.3 22.5 22.9 Private domestic funds advanced 13 Total net advances 381.6 314.9 348.5 364.8 508.1 690.0 405.9 470.0 546.1 673.3 14 U.S. government securities 91.0 107.1 115.9 203.1 226.9 237.8 252.6 247.6 206.1 213.0 15 State and local obligations 30.3 30.3 23.4 48.6 57.3 65.8 54.6 57.3 57.3 38.9 16 Corporate and foreign bonds 18.5 19.3 18.8 14.8" 14.9 29.9 29.6 21.4 8.5 17.7 17 Residential mortgages 94.2 69.1 52.9 -5.5 48.9 96.6 -18.7 22.2 75.5 107.9 18 Other mortgages and loans 156.7 96.3 153.8 104.6 153.0 275.6 78.2 109.4 196.7 311.7 19 LESS: Federal Home Loan Bank advances 9.2 7.1 16.2 -7.0 15.7 -9.5 -12.1 -2.0 15.9 Private financial intermediation 20 Credit market funds advanced by private financial institutions 316.4 281.3 317.2 287.6 382.7 553.2 300.7 334.6 430.7 548.1 21 Commercial banking 123.1 100.6 102.3 107.2 136.1 181.9 114.5 121.6 150.6 196.0 22 Savings institutions 56.5 54.5 27.4 31.4 140.5 143.0 37.6 132.7 148.4 161.5 23 Insurance and pension funds 85.6 94.5 97.6 107.4 94.2 123.1 103.8 83.0 105.3 111.8 24 Other finance 51.2 31.7 89.9 41.5 11.9 105.1 44.8 -2.7 26.5 78.8 25 Sources of funds 316.4 281.3 317.2 287.6 382.7 553.2 300.7 334.6 430.7 548.1 26 Private domestic deposits and RPs 137.4 169.6 211.9 174.4 205.2 287.7 201.7 194.1 216.3 277.1 27 Credit market borrowing 34.5 12.8 41.6 11.3 17.4 55.4 -12.2 .5 34.4 49.6 28 Other sources 144.5 63.7 101.8 160.0 210.1 111.2 140.0 180.0 221.3 29 Foreign funds 27.6 -21.7 -8.7 -26.7 22.1 19.0 -25.1 -14.2 58.5 27.2 30 Treasury balances .4 -2.6 -1.1 6.1 -5.3 4.0 14.1 10.1 -20.8 1.7 31 Insurance and pension reserves 72.9 83.7 90.7 103.2 95.1 111.7 95.3 83.5 106.8 118.0 32 Other, net 43.6 39.4 -17.2 19.3 48.1 75.4 26.9 60.6 35.6 74.6 Private domestic nonfinancial investors 33 Direct lending in credit markets 99.7 46.5 72.9 88.5 142.8 192.2 93.0 135.9 149.8 174.8 34 U.S. government securities 52.5 24.6 29.3 32.1 88.3 122.8 28.9 97.5 79.1 128.3 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 36 Corporate and foreign bonds -1.4 -11.0 -3.9 3.9 -9.2 13.8 -14.5 -4.0 -8.4 37 Open market paper 8.6 -3.1 2.7 -.6 6.5 -1.0 -4.7 -6.0 19.1 4.4 38 Other 30.1 29.1 33.7 24.0 13.7 28.2 25.4 11.8 15.6 26.2 39 Deposits and currency 146.8 181.1 221.9 181.6 224.4 292.2 211.5 215.9 232.8 288.5 40 Currency 8.0 10.3 9.5 9.7 14.3 8.6 12.7 14.8 13.8 15.9 41 Checkable deposits 18.3 5.2 18.0 15.4 23.0 21.4 29.3 49.1 -3.0 25.0 42 Small time and savings accounts 59.3 82.9 47.0 138.1 219.5 149.2 193.1 278.9 160.1 129.9 43 Money market fund shares 34.4 29.2 107.5 24.7 -44.1 47.2 10.0 -84.0 -4.2 30.2 44 Large time deposits 18.8 45.8 36.9 -7.7 -7.5 75.7 -37.3 -61.0 45.9 88.8 45 Security RPs 6.6 6.5 2.5 3.8 14.3 -5.8 6.6 11.0 17.5 3.3 46 Deposits in foreign countries 1.5 1.1 .5 -2.5 4.8 -4.0 -2.9 7.0 2.7 -4.5 47 Total of credit market instruments, deposits and currency 227.6 304.5 351.8 382.6 48 Public holdings as percent of total 18.4 26.4 24.5 27.6 21.1 18.8 27.4 22.9 19.4 17.0 49 Private financial intermediation (in percent) 82.9 89.3 91.0 78.8 75.3 80.2 74.1 71.2 78.9 81.4 50 Total foreign funds 23.1 1.6 7.6 -3.9 49.2 62.4 12.8 85.7 57.0 MEMO: Corporate equities not included above 51 Total net issues -4.3 21.9 -3.0 35.3 67.8 -33.1 47.2 83.4 52.1 -40.8 52 Mutual fund shares .1 5.2 6.3 18.4 32.8 37.7 24.3 36.8 28.9 39.6 53 Other equities -4.3 16.8 -9.3 16.9 35.0 -70.8 22.9 46.7 23.2 -80.4 54 Acquisitions by financial institutions 12.9 24.9 20.9 37.1 56.4 11.1 63.9 76.2 36.5 2.6 55 Other net purchases -17.1 -3.0 -23.9 -1.8 11.4 -44.3 -16.7 7.2 15.6 -43.4 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line 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
A44 Domestic Nonfinancial Statistics • April 1986 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures' 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1985 1986 MMeeaassuurree 11998833 11998844 11998855 May June July Aug. Sept. Oct.' Nov.' Dec.' Jan. 1 Industrial production 109.2 121.8 124.5 124.1 124.3 124.1 125.2 125.1 124.4 125.4 126.3 126.7 Market groupings 2 Products, total 113.9 127.1 131.7 131.4 131.6 131.6 133.0 133.1 131.8 133.5 134.4 135.0 3 Final, total 114.7 127.8 132.0 131.7 131.6 131.8 133.3 133.3 131.9 133.7 134.7 135.4 4 Consumer goods 109.3 118.2 120.7 120.0 120.4 120.1 121.5 121.8 120.8 122.8 124.2 125.2 5 Equipment 121.7 140.5 147.1 147.1 146.6 147.3 149.0 148.6 146.6 148.3 148.6 148.8 6 Intermediate 111.2 124.9 130.6 130.3 131.4 130.7 132.0 132.3 131.5 132.7 133.2 133.9 7 Materials 102.8 114.6 114.7 114.2 114.3 113.8 114.5 114.2 114.2 114.3 115.2 115.3 Industry groupings 8 Manufacturing 110.2 123.9 127.1 126.6 126.7 126.9 128.2 127.7 127.2 128.3 129.3 129.8 Capacity utilization (percent)2 9 Manufacturing 74.0 80.8 80.3 80.3 80.1 80.1 80.7 80.1 79.6 80.1 80.5 80.6 10 Industrial materials industries 75.3 82.3 80.2 80.1 80.1 79.5 79.9 79.5 79.3 79.2 79.7 79.6 11 Construction contracts (1977 = 100)3 138.(K 150.0' 161.0 161.(K 154.0' 164.(K 164.C 167.CK 168.0 162.0 162.0 162.0 12 Nonagricultural employment, total4 137.1 143.6 148.5 148.0 148.1 148.5 148.9 149.3 149.8 150.1 150.6 151.4 13 Goods-producing, total 100.1 106.1 107.5 107.5 107.3 107.2 107.3 107.1 107.5 107.6 107.9 108.7 14 Manufacturing, total 94.8 99.8 99.9 99.9 99.7 99.5 99.6 99.1 99.4 99.7 99.9 100.1 15 Manufacturing, production-worker ... 87.6' 93.C 92.4 92.3 92.0 91.8 91.9 91.5 91.8 92.0 92.5 92.6 16 Service-producing 157.3 164.1 170.9 170.3 170.5 171.1 171.7 172.4 173.0 173.5 174.0 174.8 17 Personal income, total 440.1 482.8 511.0 507.6 509.0 510.5 511.3 513.6 516.7 519.3 525.3 524.9 18 Wages and salary disbursements 390.7 427.8 457.1 453.9 456.6 456.9 459.2 461.9 464.3 467.1 471.3 472.9 19 Manufacturing 295.9 326.8 340.7 338.8 339.4 339.2 340.7 341.3 344.9 344.8 348.3 347.4 20 Disposable personal income5 175.8 193.6 203.1 207.2 202.1 202.7 202.8 203.5 204.8 205.8 208.3 208.7 21 Retail sales (1977 = 100)6 162.0 179.0 190.6 190.7 188.8 189.9 194.2 198.4 190.6 191.6 194.9 195.0 Prices7 22 Consumer 298.4 311.1 322.2 321.3 322.3 322.8 323.5 324.5 325.5 326.6 327.4 328.4 23 Producer finished goods 285.2 291.1 293.7 294.1 294.0 294.8 293.5 289.9' 294.8 296.7 297.2 296.2 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 enjgineering, 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' 1986 CCaatteeggoorryy 11998833 11998844 11998855 June July Aug. Sept. Oct. Nov.' Dec.' Jan. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 176,414 178,602 180,440 180,322 180,492 180,657 180,831 181,011 181,186 181,349 181,898 2 Labor force (including Armed Forces)1 113,749 115,763 117,695 117,250 117,501 117,595 118,049 118,355 118,376 118,466 119,014 3 Civilian labor force 111111,,555500 113,544 115,461 115,024 115,272 115,343 115,790 116,114 116,130 111166,,222299 111166,,778866 Employment 4 Nonagricultural industries2 97,450 101,685 103,971 103,461 103,751 104,115 104,502 104,755 104,899 105,055 105,655 5 Agriculture 3,383 3,321 3,179 3,140 3,120 3,095 3,017 3,058 3,070 3,151 33,,229999 Unemployment 6 Number 10,717 8,539 8,312 8,423 8,401 8,133 8,271 8,301 8,161 8,023 7,831 7 Rate (percent of civilian labor force) ... 9.6 7.5 7.2 7.3 7.3 7.1 7.1 7.1 7.0 6.9 6.7 8 Not in labor force 62,665 62,839 62,745 63,072 62,991 63,062 62,782 62,656 62,810 62,883 62,884 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 90,196 94,461 97,692 97,473 97,707 97,977 98,217 98,559 98,801 99,069 99,635 10 Manufacturing 18,434 19,412 19,424 19,398 19,351 19,362 19,279 19,338 19,381' 19,431' 19,466 11 Mining 952 974 969 974 969 965 962 960 954' 953' 951 12 Contract construction 3,948 4,345 4,661 4,638 4,660 4,688 4,721 4,753 4,754' 4,761' 4,918 13 Transportation and public utilities 4,954 5,171 5,301 5,295 5,302 5,282 5,317 5,327 5,342' 5,345' 5,377 14 Trade 20,881 22,134 23,188 23,193 23,226 23,305 23,344 23,440 23,473' 23,560' 23,789 15 Finance 5,468 5,682 5,924 5,906 5,932 5,959 5,987 6,011 6,048' 6,069' 6,104 16 Service 19,694 20,761 21,931 21,856' 21,926' 22,073' 22,155' 22,244' 22,365 22,438 22,552 17 Government 15,869' 15,984' 16,294 16,213 16,341 16,343 16,452 16,486 16,484' 16,512' 16,478 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 • April 1986 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1985 1985 1985 Q1 Q2 Q3 Q4' Qi Q2 Q3 Q4 Qi Q2 Q3 Q4' Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 123.8 124.2 124.8 125.3 152.8 154.0 155.1 156.2 81.0 80.7 80.5 80.2 2 Mining 110.1 110.0 108.5 107.5 133.4 133.6 133.9 134.1 82.6 82.3 81.0 80.2 3 Utilities 114.2 113.6 111.4 113.3 133.7 134.5 135.4 136.3 85.5 84.4 82.3 83.1 4 Manufacturing 126.0 126.6 127.6 128.3 156.5 157.7 158.9 160.2 80.5 80.3 80.3 80.1 5 Primary processing ... 107.5 108.1 109.5 110.2 131.6 132.0 132.4 132.8 81.6 81.9 82.7 82.9 6 Advanced processing . 137.1 137.9 138.6 139.2 171.4 173.2 174.9 176.7 80.0 79.6 79.2 78.8 7 Materials 115.4 114.5 114.2 114.6 141.6 142.5 143.4 144.3 81.5 80.4 79.6 79.4 8 Durable goods 123.6 121.4 120.7 121.4 155.9 157.4 158.9 160.5 79.3 77.1 76.0 75.6 9 Metal materials .... 80.6 80.2 79.4 82.4 117.3 117.3 117.3 117.3 68.7 68.4 67.7 70.3 10 Nondurable goods.... 110.9 111.2 113.7 113.2 137.3 137.8 138.2 138.7 80.7 80.7 82.2 81.6 11 Textile, paper, and chemical.. 111.6 111.0 114.1 113.2 136.7 137.0 137.4 137.8 81.7 81.0 83.0 82.2 12 Paper 126.3 121.8 123.8 123.5 136.1 136.2 136.3 136.5 92.8 89.4' 90.8 90.5 13 Chemical 113.2 112.6 114.6 114.1 141.5 142.0 142.6 143.1 80.0 79.3 80.4 79.7 14 Energy materials 105.0 105.2 103.2 103.8 120.0 120.3 120.6 120.9 87.5 87.5 85.5 85.8 Previous cycle1 Latest cycle2 1985 1985 1986 High Low High Low Jan. May June July Aug. Sept. Oct/ Nov/ Dec/ Jan. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 81.1 80.6 80.5 80.2 80.7 80.5 79.8 80.3 80.7 80.8 16 Mining 92.8 87.8 95.2 76.9 82.9 82.2 82.7 81.2 80.9 81.0 80.9 79.9 79.7 80.6 17 Utilities 95.6 82.9 88.5 78.0 84.7 84.5 84.1 81.9 81.5 83.4 82.7 82.9 83.8 82.7 18 Manufacturing 87.7 69.9 86.5 68.0 80.7 80.3 80.1 80.1 80.7 80.1 79.6 80.1 80.5 80.6 19 Primary processing ... 91.9 68.3 89.1 65.1 81.6 81.5 82.0 82.3 82.9 82.8 83.1 82.8 83.0 83.4 20 Advanced processing . 86.0 71.1 85.1 69.5 80.2 79.8 79.3 79.1 79.6 79.0 78.0 78.9 79.4 79.3 21 Materials 92.0 70.5 89.1 68.4 81.7 80.1 80.1 79.5 79.9 79.5 79.3 79.2 79.7 79.6 22 Durable goods 91.8 64.4 89.8 60.9 79.9 76.6 76.5 75.8 76.6 75.4 75.2 75.7 76.0 76.0 23 Metal materials 99.2 67.1 93.6 45.7 68.1 66.2 69.0 66.4 69.4 67.3 69.4 70.5 71.0 71.5 24 Nondurable goods .... 91.1 66.7 88.1 70.6 80.9 80.8 81.0 81.7 82.1 82.9 81.9 81.3 81.8 81.9 25 Textile, paper, and chemical 92.8 64.8 89.4 68.6 81.7 80.9 81.4 82.7 82.8 83.7 82.4 81.6 82.5 82.5 26 Paper 98.4 70.6 97.3 79.9 93.7 88.8 90.5 91.7 90.1 90.7 88.8 90.2 92.5 n.a. 27 Chemical 92.5 64.4 87.9 63.3 80.1 79.5 79.2 80.1 79.8 81.2 80.5 78.9 79.8 n.a. 28 Energy materials 94.6 86.9 94.0 82.2 86.6 87.5 87.3 85.8 85.1 85.6 86.2 85.1 86.2 85.7 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 1986 Grouping por- avg. tion Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.'' Jan.' Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 124.5 123.6 123.7 124.0 124.1 124.1 124.3 124.1 125.2 125.1 124.4 125.4 126.3 126.7 2 Products 57.72 131.7 129.6 129.8 130.3 130.8 131.4 131.6 131.6 133.0 133.1 131.8 133.5 134.4 135.0 3 Final products 44.77 132.0 130.4 130.4 130.8 131.3 131.7 131.6 131.8 133.3 133.3 131.9 133.7 134.7 135.4 4 Consumer goods 25.52 120.7 118.8 119.1 119.8 119.5 120.0 120.4 120.1 121.5 121.8 120.8 122.8 124.2 125.2 5 Equipment 19.25 147.1 145.7 145.3 145.4 146.9 147.1 146.6 147.3 149.0 148.6 146.6 148.3 148.6 148.8 6 Intermediate products 12.94 130.6 126.8 127.7 128.6 129.3 130.3 131.4 130.7 132.0 132.3 131.5 132.7 133.2 133.9 7 Materials 42.28 114.7 115.4 115.4 115.5 115.0 114.2 114.3 113.8 114.5 114.2 114.2 114.3 115.2 115.3 Consumer goods 8 Durable consumer goods 6.89 112.9 112.8 112.8 113.5 111.5 111.8 112.0 111.3 114.0 112.9 111.4 115.5 116.8 119.4 9 Automotive products 2.98 115.1 114.2 115.4 115.1 113.1 113.6 113.4 115.0 120.0 117.8 112.9 116.8 116.2 121.1 10 Autos and trucks 1.79 112.0 112.5 111.7 110.5 109.0 109.6 109.4 113.7 120.2 116.6 108.7 113.7 112.0 120.6 11 Autos, consumer 1.16 98.9 102.5 100.7 101.3 100.5 98.1 97.0 101.1 101.3 98.8 92.3 94.9 99.9 103.6 12 Trucks, consumer .63 136.3 131.1 132.0 127.5 124.7 130.9 132.3 137.2 155.4 149.7 139.1 148.6 134.5 13 Auto parts and allied goods 1.19 119.7 116.8 121.1 122.0 119.4 119.6 119.4 116.8 119.6 119.5 119.3 121.4 122.4 121.8 14 Home goods 3.91 111.3 111.6 110.9 112.2 110.2 110.4 110.9 108.4 109.5 109.3 110.2 114.6 117.2 118.1 15 Appliances, A/C and TV 1.24 129.5 126.1 127.1 131.8 126.9 129.3 131.5 121.6 124.5 123.7 126.3 139.4 144.2 145.1 16 Appliances and TV 1.19 130.3 126.6 127.2 131.8 127.1 128.7 131.7 123.2 125.5 125.6 128.6 141.9 147.1 17 Carpeting and furniture .96 119.4 112.7 117.9 117.7 118.1 116.9 119.6 122.2 119.5 120.2 120.1 122.9 125.3 18 Miscellaneous home goods 1.71 93.6 100.6 95.1 95.0 93.7 93.1 91.2 91.2 93.0 92.7 92.9 92.0 93.2 19 Nondurable consumer goods 18.63 123.6 121.1 121.4 122.1 122.5 123.1 123.5 123.4 124.2 125.1 124.3 125.5 126.9 127.4 20 Consumer staples 15.29 129.4 126.6 126.9 127.9 128.5 129.0 129.6 129.3 130.3 131.0 130.1 131.0 132.6 132.9 21 Consumer foods and tobacco 7.80 129.7 127.1 127.8 128.0 129.4 128.9 130.5 130.1 130.8 131.5 129.5 130.5 131.9 22 Nonfood staples 7.49 129.1 126.0 126.0 127.7 127.6 129.1 128.7 128.5 129.7 130.5 130.6 131.6 133.3 134.2 23 Consumer chemical products ., 2.75 147.5 142.9 143.2 145.1 145.1 147.3 145.4 145.4 149.1 151.4 149.4 152.1 153.9 24 Consumer paper products 1.88 143.7 141.2 138.1 141.7 142.0 143.7 144.6 144.9 143.9 144.7 145.5 145.7 147.7 25 Consumer energy 2.86 101.9 99.9 101.5 101.9 101.5 102.1 102.2 101.5 101.8 101.0 102.9 102.7 104.1 26 Consumer fuel 1.44 88.5 85.1 84.9 87.0 90.0 90.2 88.8 89.2 91.1 85.8 90.2 90.1 90.9 27 Residential utilities 1.42 115.0 118.4 117.1 113.2 114.4 115.9 114.0 112.7 116.5 115.8 115.6 Equipment 28 Business and defense equipment 18.01 147.8 145.5 145.6 146.1 147.7 147.9 147.4 147.9 149.7 149.4 147.5 149.7 150.0 150.6 29 Business equipment 14.34 141.3 140.4 140.0 140.2 142.0 141.9 140.7 141.3 143.0 142.2 139.6 141.7 142.2 143.0 30 Construction, mining, and farm .. 2.08 67.7 68.8 68.3 67.1 68.4 67.4 67.7 68.6 67.2 67.0 65.9 68.2 68.0 31 Manufacturing 3.27 112.8 111.6 112.3 112.0 112.4 113.1 111.9 113.5 115.1 114.8 111.7 112.8 112.6 112.4 32 Power 1.27 83.6 82.5 81.8 79.6 81.8 82.8 84.1 85.6 84.5 85.1 85.5 84.7 85.8 85.1 33 Commercial 5.22 219.3 217.4 217.0 218.9 221.8 222.8 219.6 219.5 222.8 219.4 213.9 217.7 221.0 220.6 34 Transit 2.49 106.1 106.7 104.9 104.5 106.0 102.9 103.4 103.3 106.0 108.3 109.7 111.2 106.6 113.3 35 Defense and space equipment 3.67 173.6 165.3 167.3 169.0 170.1 171.2 173.4 173.9 175.5 177.5 178.7 180.7 180.7 180.4 Intermediate products 36 Construction supplies 5.95 119.0 116.2 115.7 116.9 117.4 118.1 119.2 119.4 121.5 121.3 120.0 121.0 121.1 122.2 37 Business supplies 6.99 140.5 135.9 137.9 138.6 139.4 140.7 141.7 140.3 140.9 141.7 141.2 142.8 143.6 38 General business supplies 5.67 144.4 140.2 141.1 141.9 143.4 144.4 146.1 144.4 145.1 145.4 144.8 146.8 147.7 39 Commercial energy products 1.31 123.7 117.1 124.1 124.5 122.4 124.6 122.7 122.7 122.5 125.7 125.7 125.3 125.9 Materials 40 Durable goods materials 20.50 121.8 124.2 123.3 123.3 122.8 120.7 120.8 120.2 121.8 120.2 120.4 121.5 122.3 122.7 41 Durable consumer parts 4.92 100.7 102.6 102.2 102.1 101.8 100.1 98.7 98.3 100.0 99.0 100.2 101.3 101.9 102.7 42 Equipment parts 5.94 159.0 166.7 164.2 163.3 161.1 157.8 157.3 157.0 158.7 156.5 154.0 155.0 156.2 156.2 43 Durable materials n.e.c 9.64 109.7 109.1 109.0 109.6 110.0 108.2 109.6 108.6 110.2 108.7 109.9 111.1 111.8 112.2 44 Basic metal materials 4.64 84.8 83.5 84.1 85.1 86.6 82.0 85.0 82.5 85.1 82.8 85.8 87.2 88.5 45 Nondurable goods materials 10.09 112.2 110.9 111.4 110.3 110.4 111.3 111.8 112.8 113.5 114.7 113.4 112.7 113.6 113.8 46 Textile, paper, and chemical materials 7.53 112.4 111.5 112.1 111.3 110.5 110.9 111.7 113.5 113.8 115.1 113.5 112.5 113.7 114.0 47 Textile materials 1.52 97.7 90.3 93.5 93.0 94.1 95.0 97.3 100.2 104.4 104.1 101.2 100.4 99.3 48 Pulp and paper materials 1.55 123.7 127.5 126.0 125.4 121.3 120.9 123.3 125.0 122.8 123.7 121.1 123.1 126.3 49 Chemical materials 4.46 113.6 113.3 113.5 112.7 112.3 112.9 112.6 114.0 113.8 115.9 115.0 112.9 114.3 50 Miscellaneous nondurable materials 2.57 111.3 109.2 109.4 107.2 110.1 112.5 112.0 110.8 112.7 113.5 113.3 113.4 113.2 51 Energy materials 11.69 104.3 103.9 104.9 106.2 105.3 105.3 105.1 103.5 102.7 103.4 104.2 102.9 104.3 103.8 52 Primary energy 7.57 107.8 107.0 107.6 110.2 107.9 107.8 109.0 107.4 106.4 106.8 108.2 107.1 108.3 53 Converted fuel materials 4.12 97.9 98.2 100.0 99.0 100.6 100.6 98.1 96.2 95.9 97.0 96.8 95.3 97.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A48 Domestic Nonfinancial Statistics • April 1986 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued 1977 1985 1986 Grouping c S o I d C e p p r o o r - - a 1 v 98 g 5 . tion Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct/ Nov. Dec.P Jan.1 Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities. 15.79 110.6 111.4 111.9 111.8 111.1 111.3 111.6 109.4 109.1 110.3 109.9 109.3 109.8 110.1 2 Mining 9.83 109.0 110.5 109.5 110.5 109.6 109.8 110.6 108.7 108.3 108.4 108.4 107.1 107.0 108.2 3 Utilities 5.96 113.2 113.0 115.8 113.9 113.6 113.7 113.4 110.7 110.3 113.2 112.4 113.0 114.4 113.2 4 Manufacturing 84.21 127.1 125.9 125.8 126.3 126.6 126.6 126.7 126.9 128.2 127.7 127.2 128.3 129.3 129.8 5 Nondurable 35.11 125.6 123.2 123.8 123.9 124.3 124.7 125.5 125.6 126.6 126.9 126.4 127.1 128.2 128.4 6 Durable 49.10 128.2 127.8 127.2 128.0 128.2 127.9 127.6 127.9 129.4 128.3 127.7 129.1 130.1 130.8 Mining 1 Metal 10 .50 75.1 70.5 74.5 83.6 81.2 78.3 77.5 60.9 73.1 71.4 74.2 78.3 76.0 8 Coal 11.12 1.60 127.5 118.5 121.5 131.9 128.5 128.7 134.0 128.0 127.7 126.3 130.1 125.5 128.0 132.3 9 Oil and gas extraction ... 13 7.07 106.3 110.7 108.2 106.8 106.5 106.9 106.9 106.9 105.5 106.0 104.8 103.9 103.4 104.0 10 Stone and earth minerals. 14 .66 118.8 118.5 119.8 118.7 118.5 118.7 117.9 116.6 117.7 119.3 120.4 119.2 117.8 Nondurable manufactures 11 Foods 20 7.96 131.0 128.2 129.4 128.5 130.8 131.4 131.8 132.2 132.6 132.5 130.7 131.4 132.4 12 Tobacco products 21 .62 97.2 103.8 103.4 98.4 95.7 98.9 96.0 97.7 97.8 105.3 100.4 13 Textile mill products 22 2.29 102.5 93.6 98.5 99.4 99.0 100.0 103.3 104.1 106.3 106.7 104.9 105.6 104.9 14 Apparel products 23 2.79 101.8 102.6 103.1 101.3 100.2 100.3 99.2 100.6 100.4 101.8 102.6 103.9 106.0 15 Paper and products 26 3.15 127.4 128.3 126.4 126.9 125.1 124.1 127.1 129.0 127.5 128.6 127.3 128.3 130.9 16 Printing and publishing 27 4.54 155.3 150.4 150.3 152.6 154.2 155.4 156.7 154.3 156.3 156.2 157.0 158.9 161.5 161.0 17 Chemicals and products 28 8.05 127.1 125.7 125.8 126.5 125.8 126.7 126.4 126.4 128.2 129.0 127.9 128.1 128.2 18 Petroleum products 29 2.40 86.7 84.1 84.0 84.7 87.3 87.4 87.1 88.3 88.2 85.9 87.7 87.3 87.9 92.3 19 Rubber and plastic products. 30 2.80 147.0 145.9 145.7 144.1 144.9 144.3 145.5 145.6 148.0 148.6 148.7 150.5 151.1 20 Leather and products 31 .53 70.9 69.1 69.2 69.4 69.9 71.0 71.5 72.2 72.7 72.3 71.4 72.1 70.0 Durable manufactures 21 Lumber and products 24 2.30 109.2 109.1 109.5 110.9 112.2 113.5 113.0 114.8 115.9 116.5 115.7 22 Furniture and fixtures 25 1.27 142.0 136.5 139.0 139.2 141.0 142.0 141.9 145.3 144.3 143.2 141.9 144.1 146.0 23 Clay, glass, stone products. 32 2.72 114.8 112.7 110.5 111.4 114.5 116.3 116.1 115.1 116.2 116.2 115.6 115.2 116.3 24 Primary metals 33 5.33 80.6 81.7 80.2 81.8 81.4 76.4 78.3 79.0 82.0 80.3 83.1 83.3 81.5 84.1 25 Iron and steel 331.2 3.49 70.7 71.0 68.5 73.2 71.9 65.4 67.6 68.7 71.6 69.7 74.4 75.3 72.7 26 Fabricated metal products 34 6.46 107.8 106.4 107.6 108.6 109.1 108.3 107.4 107.3 107.8 107.5 108.4 107.9 108.3 108.3 27 Nonelectrical machinery .. 35 9.54 146.6 145.0 144.9 146.5 148.9 149.1 145.6 147.5 149.2 146.5 143.0 145.6 147.5 147.0 28 Electrical machinery 36 7.15 169.3 176.0 173.2 173.1 168.9 169.3 169.5 165.7 166.1 165.1 165.1 168.7 172.0 172.3 29 Transportation equipment 37 9.13 123.2 120.4 120.5 120.8 120.7 120.9 121.8 123.7 126.8 126.2 124.5 126.5 126.8 129.0 30 Motor vehicles and parts 371 5.25 112.8 113.0 112.5 111.3 110.9 110.5 110.5 112.8 116.8 115.3 111.7 114.5 115.3 118.5 31 Aerospace and miscellaneous transportation equipment. 372-6.9 3.87 137.5 130.5 131.4 133.7 134.1 134.9 137.1 138.5 140.4 141.1 141.9 142.9 142.4 143.3 32 Instruments 38 2.66 139.9 138.7 138.7 139.0 138.5 139.9 140.7 141.1 141.8 139.4 139.8 140.7 141.0 139.8 33 Miscellaneous manufactures 39 1.46 96.4 99.0 96.4 96.0 98.3 98.3 96.8 95.9 97.2 96.4 95.9 94.6 94.3 Utilities 34 Electric. 44..1177 111199..55 111188..99 112211..99 111199..55 111199..11 111199..55 111199..44 111177..55 111166..77 112200..66 111199..33 111199..88 112211..55 Gross value (billions of 1972 dollars, annual rates)' MAJOR MARKET 35 Products, total 517.5 773.4 761.3 764.2 769.5 773.3 774.4 773.5 769.0 778.7 777.9 772.2 783.1 36 Final 405.7 614.8 606.5 608.7 613.3 616.2 616.2 614.0 610.1 618.6 617.8 613.0 622.6 37 Consumer goods . 272.7 364.8 358.8 360.9 364.6 364.7 365.1 364.0 361.7 366.2 365.6 363.8 370.7 38 Equipment 133.0 250.1 247.6 242.7 244.8 248.0 250.8 251.0 250.3 252.4 252.2 249.3 251.9 39 Intermediate 111.9 158.6 154.9 153.6 153.9 155.6 158.3 159.7 160.4 160.1 160.1 159.2 160.4 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 11998833 11998844 11998855 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,605 1,682 1,726 1,741 1,704 1,778 1,712 1,694 1,784 1,808 1,688 1,661 1,873 2 1-family 902 922 953 993 948 933 961 967 990 949 965 918 978 3 2-or-more-family 703 759 773 748 756 845 751 727 794 859 723 743 895 4 Started 1,703 1,749 1,736 1,785 1,824 1,883 1,834 1,976 1,945 2,052 2,042 2,051 2,121 5 1-family 1,067 1,084 1,072 1,147 1,129 1,041 1,036 1,068 1,071 1,006 1,118 1,006 1,087 6 2-or-more-family 635 665 664 702 722 643 657 605 666 647 666 648 717 7 Under construction, end of period1 1,003 1,051 1,062 1,063 1,088 1,089 1,075 1,073 1,084 1,063 1,090 1,082 1,083 8 1-family 524 556 542 578 583 582 575 578 583 567 576 569 562 9 2-or-more-family 479 494 520 485 505 507 500 495 502 496 513 513 520 10 Completed 1,390 1,652 1,700 1,685 1,641 1,627 1,789 1,725 1,721 1,793 1,529 1,702 1,712 11 1-family 924 1,025 1,070 1,043 1,074 1,020 1,097 1,048 1,019 1,110 1,065 1,070 1,112 12 2-or-more-family 466 627 629 642 567 607 692 677 702 683 464 632 600 13 Mobile homes shipped 296 296 284 286 288 287 272 285 286 283 291 287 285 Merchant builder activity in 1-family units 14 Number sold 622 639 686 699 649 682 710 748 708 681 634 709 721 15 Number for sale, end of period1 304 358 356 357 356 356 354 351 348 350 354 355 354 PPrriiccee ((tthhoouussaannddss ooff ddoollllaarrss))11 MMeeddiiaann 1166 UUnniittss ssoolldd 75.5 80.0 84.3 84.2 85.6 80.1 86.3 82.1 83.3 84.7 85.0 86.4 89.3 AAvveerraaggee 1177 UUnniittss ssoolldd 89.9 97.5 101.1 100.9 104.7 98.1 99.6 99.4 99.2 102.6 101.5 103.9 108.6 EXISTING UNITS (1-family) 18 Number sold 2,719 2,868 3,219 3,030 3,040 3,040 3,060 3,140 3,500 3,450 3,550 3,420 3,530 Price of units sold (thousands of dollars)2 19 Median 69.8 72.3 75.1 74.2 74.5 75.0 76.2 77.4 76.9 75.5 74.8 74.6 74.8 20 Average 82.5 85.9 90.4 88.6 89.7 90.1 91.5 93.5 93.0 91.1 90.8 90.0 91.2 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 268,730 312,989 343,006 333,723 341,861 339,943 343,837 344,206 343,246 346,084 346,053 344,802 354,620 77 Private 218,016 257,802 280,702 274,575 281,988 276,420 278,939 279,521 279,371 282,505 283,302 282,423 291,152 73 121,309 145,058 148,322 146,195 146,539 142,254 147,158 148,699 146,858 148,915 151,078 149,364 151,301 24 Nonresidential, total 96,707 112,744 132,380 128,380 135,449 134,166 131,781 130,822 132,513 133,590 132,224 133,059 139,851 Buildings 75 12,863 13,746 15,769 14,585 17,283 16,443 15,170 15,384 15,118 15,567 15,674 16,303 1177,,448855 76 35,787 48,102 60,151 59,382 61,219 60,064 58,290 57,956 59,910 61,227 60,769 61,015 65,498 V Other 11,660 12,298 12,436 11,245 12,663 12,929 12,786 12,578 12,957 12,769 12,236 12,500 12,326 28 Public utilities and other 36,397 38,598 44,024 43,168 44,284 44,730 45,535 44,904 44,528 44,027 43,545 43,241 44,542 79 Public 50,715 55,186 62,305 59,148 59,873 63,523 64,897 64,686 63,875 63,580 62,752 62,380 63,468 30 Military 2,544 2,839 3,163 3,078 3,166 3,349 3,426 3,364 2,966 3,008 3,369 2,969 3,285 31 Highway 14,143 16,295 19,969 19,176 19,920 22,314 21,093 19,589 20,224 19,585 19,207 19,789 20,796 37 Conservation and development 4,822 4,656 4,954 4,727 4,393 5,051 5,410 5,075 4,824 5,254 4,899 5,185 4,936 33 Other 29,206 31,396 34,219 32,167 32,394 32,809 34,968 36,658 35,861 35,733 35,277 34,437 34,451 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 16,000jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 Domestic Nonfinancial Statistics • April 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 months earlier (at annual rate) Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm JJJaaannn... 1985' 1985 1986 111999888666 11998855 11998866 (((111999666777 JJaann.. JJaann.. === 111000000)))111 Mar. June Sept. Dec. Sept/ Oct.' Nov.' Dec.' Jan. CONSUMER PRICES2 1 AH items 3.6 3.9 4.0 3.3 2.4 5.3 .2 .4 .6 .4 .3 328.4 2 Food 2.6 2.7 1.8 .6 2.1 5.9 .4 .1 .7 .6 .2 315.6 3 Energy items -.5 2.5 .6 6.9 -3.2 3.3 -.2 -.2 .6 .4 .1 424.7 4 All items less food and energy 4.5 4.4 5.2 3.5 3.4 5.4 .2 .5 .5 .3 .4 321.6 5 Commodities 3.3 2.1 5.1 -.9 1.1 3.6 .2 .5 .2 .2 .3 261.8 6 Services 5.3 5.9 5.4 6.2 4.8 6.5 .2 .6 .7 .4 .5 387.9 PRODUCER PRICES 7 Finished goods .9 1.4 -.1 2.2 -2.7 9.5 -.6 1.0 .7 .5 -.7 296.2 8 Consumer foods .6 .4 -3.3 -5.7 -2.9 15.0 -1.0 1.8 1.0 .7 -.4 274.9 9 Consumer energy -5.6 -1.0 -21.3 24.7 -11.3 22.2 -.4 .1 2.8 2.2 -4.2 704.8 10 Other consumer goods 2.4 2.4 5.3 1.9 -.5 5.0 -.5 .8 .3 .2 .0 255.5 11 Capital equipment 2.0 2.2 5.1 1.5 -1.1 5.4 -.6 1.1 .2 .1 -.1 304.0 12 Intermediate materials3 1.5 -.6 -1.9 .6 -1.3 2.7 -.1 .1 .2 .3 -.5 323.5 13 Excluding energy 1.9 -.3 -.4 .8 -.7 -.3 -.1 -.1 .0 .0 .0 304.2 Crude materials 14 Foods -5.0 -7.7 -21.5 -16.7 -8.7 27.9 1.7 2.4 4.3 -.5 -2.6 231.4 15 Energy -3.6 -2.3 -13.1 4.4 -5.9 -2.0 .0 .0 -.1 -.5 .1 739.9 16 Other -3.5 -4.2 -5.5 -7.8 -4.4 1.0 -.9 .7 .0 -.4 -.3 243.7 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Selected Measures A51 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1984 1985 AAccccoouunntt 11998833 11998844 11998855'' Q4 Q1 Q2 Q3 Q4' GROSS NATIONAL PRODUCT 1 Total 3,401.6 3,774.7 3,989.1 3,852.5 3,917.5 3,960.6 4,016.9 4,061.5 By source 2 Personal consumption expenditures 2,229.3 2,423.0 2,582.1 2,480.1 2,525.0 2,563.3 2,606.1 2,634.0 3 Durable goods 289.6 331.1 361.1 341.5 351.5 356.5 376.0 360.3 4 Nondurable goods 817.0 872.4 912.3 883.1 895.7 910.2 914.5 928.6 5 Services 1,122.7 1,219.6 1,308.8 1,255.4 1,277.8 1,296.6 1,315.6 1,345.1 6 Gross private domestic investment 501.9 674.0 668.6 676.2 657.6 672.8 666.1 678.0 7 Fixed investment 508.3 607.0 661.4 637.2 639.1 657.3 665.9 683.4 8 Nonresidential 356.3 427.9 475.8 458.1 459.6 474.2 478.5 490.9 9 Structures 126.1 147.6 170.3 157.2 166.1 169.7 170.4 175.2 10 Producers' durable equipment 230.2 280.2 305.5 300.9 293.5 304.5 308.1 315.7 11 Residential structures 152.0 179.1 185.6 179.1 179.4 183.1 187.4 192.6 12 Change in business inventories -6.4 67.1 7.2 39.0 18.5 15.5 .2 -5.5 13 Nonfarm .8 58.0 10.7 36.4 14.2 10.8 3.1 14.5 14 Net exports of goods and services -5.3 -59.2 -76.9 -72.2 -42.3 -70.3 -87.8 -106.9 15 Exports 354.1 384.6 370.2 389.5 379.6 369.2 363.2 368.7 16 Imports 359.4 443.8 447.0 461.7 421.9 439.5 451.0 475.7 17 Government purchases of goods and services 675.7 736.8 815.3 768.4 777.2 794.8 832.5 856.5 18 Federal 284.8 312.9 355.0 332.9 334.4 337.8 364.8 382.9 19 State and local 390.9 423.9 460.3 435.5 442.8 457.1 467.7 473.6 By major type of product 70 Final sales, total 3,408.0 3,707.6 3,981.9 3,813.5 3,899.0 33,,994455..00 44,,001166..77 44,,006666..99 2.1 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 27, Durable 572.3 679.5 712.4 701.9 706.2 705.9 714.8 708.5 23 Nondurable 822.4 906.3 931.8 902.2 922.1 930.2 935.9 936.9 24 Services 1,678.0 1,806.6 1,928.8 1,855.6 1,887.6 1,908.2 1,939.9 1,982.5 25 Structures 328.9 382.2 419.5 392.9 401.5 416.3 426.2 433.6 26 Change in business inventories -6.4 67.1 7.2 39.0 18.5 15.5 .2 -5.5 27 Durable goods -.8 37.0 7.8 29.3 16.9 1.8 -6.4 9.5 28 Nondurable goods -5.5 30.1 1.2 9.7 1.6 13.7 6.6 -15.0 29 MEMO: Total GNP in 1982 dollars 3,275.2 3,492.0 3,571.0 3,515.6 3,547.8 3,557.4 3,584.1 3,594.8 NATIONAL INCOME 30 2,718.3 3,039.3 3,212.0 3,104.4 3,155.3 3,192.2 3,228.0 n.a. 31 Compensation of employees 2,025.9 2,221.3 2,372.4 2,278.5 2,320.4 2,356.9 2,385.2 2,427.2 32 Wages and salaries 1,675.4 1,835.2 1,960.2 1,884.4 1,917.7 1,947.6 1,970.1 2,005.5 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 1,589.7 1,529.8 1,555.1 1,580.2 1,597.5 1,625.8 35 Supplement to wages and salaries 350.5 386.2 412.2 394.0 402.7 409.4 415.1 421.7 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 192.3 233.7 242.3 232.9 239.4 240.9 237.5 251.2 39 Business and professional1 178.0 201.6 220.9 206.3 212.9 218.1 225.3 227.5 40 Farm1 14.3 32.1 21.3 26.6 26.5 22.8 12.2 23.7 41 Rental income of persons2 12.8 10.8 14.0 9.7 11.0 13.8 14.5 16.7 42 Corporate profits1 213.8 273.3 296.2 276.2 281.7 288.1 309.1 n.a. 43 Profits before tax3 205.0 237.6 225.0 228.0 220.0 218.7 228.6 n.a. 44 Inventory valuation adjustment -10.0 -5.4 -.6 -1.6 .7 2.2 4.7 -10.0 45 Capital consumption adjustment 18.8 41.0 71.8 49.8 61.1 67.2 75.9 83.0 46 Net interest 273.6 300.2 287.2 307.0 302.9 292.4 281.8 271.6 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A52 Domestic Nonfinancial Statistics • April 1986 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1984 1985 AAccccoouunntt 11998833 11998844 11998855'' Q4 QI Q2 Q3 Q4R PERSONAL INCOME AND SAVING 1 Total personal income 2,836.4 3,111.9 3,293.4 3,186.2 3,240.9 3,280.1 3,298.5 3,354.1 2 Wage and salary disbursements 1,675.8 1,834.9 1,960.5 1,883.9 1,917.6 1,948.6 1,970.1 2,005.5 3 Commodity-producing industries 523.0 577.9 607.3 591.2 600.1 604.7 607.6 616.8 4 Manufacturing 397.4 438.9 457.6 449.0 453.5 454.9 457.2 464.7 5 Distributive industries 404.2 441.6 468.7 453.0 459.8 467.4 471.2 476.5 6 Service industries 424.4 469.4 513.6 485.5 495.2 508.1 518.7 532.5 7 Government and government enterprises 324.2 346.1 370.8 354.1 362.5 368.4 372.6 379.7 8 Other labor income 179.5 193.4 206.4 197.2 200.9 204.8 208.4 211.5 9 Proprietors' income1 192.3 233.7 242.3 232.9 239.4 240.9 237.5 251.2 10 Business and professional1 178.0 201.6 220.9 206.3 212.9 218.1 225.3 227.5 11 Farm1 14.3 32.1 21.3 26.6 26.5 22.8 12.2 23.7 12 Rental income of persons2 12.8 10.8 14.0 9.7 11.0 13.8 14.5 16.7 13 Dividends 68.0 74.6 78.9 76.9 77.9 78.7 79.1 79.8 14 Personal interest income 385.7 442.2 456.0 461.3 462.8 460.5 450.6 450.1 15 Transfer payments 442.2 454.7 484.5 459.2 477.6 481.0 488.1 491.2 16 Old-age survivors, disability, and health insurance benefits... 221.7 235.7 253.4 241.8 249.2 250.7 256.5 257.1 17 LESS: Personal contributions for social insurance 119.8 132.4 149.1 134.9 146.3 148.3 149.7 152.0 18 EQUALS: Personal income 2,836.4 3,111.9 3,293.4 3,186.2 3,240.9 3,280.1 3,298.5 3,354.1 19 LESS: Personal tax and nontax payments 411.1 441.8 492.7 462.4 501.7 462.4 498.2 508.4 20 EQUALS: Disposable personal income 2,425.4 2,670.2 2,800.7 2,723.8 2,739.2 2,817.7 2,800.2 2,845.6 21 LESS: Personal outlays 2,292.2 2,497.7 2,671.6 2,559.4 2,608.4 2,650.6 2,697.6 2,729.6 22 EQUALS: Personal saving 133.2 172.5 129.1 164.5 130.9 167.2 102.6 116.0 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 1144,,998888..33 1155,,003399..44 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 9,714.9 25 Disposable personal income 9,952.0 10,427.0 10,484.0 10,457.0 10,429.0 10,617.0 10,468.0 10,481.0 26 Saving rate (percent) 5.5 6.5 4.6 6.0 4.8 5.9 3.7 4.1 GROSS SAVING 27 Gross saving 469.8 584.5 554.4 573.5 578.3 571.7 537.3 n.a. 28 Gross private saving 600.6 693.0 694.8 700.3 677.7 723.6 681.8 n.a. 29 Personal saving 133.2 172.5 129.1 164.5 130.9 167.2 102.6 116.0 30 Undistributed corporate profits1 67.9 101.6 127.2 108.2 116.3 122.6 137.8 n.a. 31 Corporate inventory valuation adjustment -10.0 -5.4 -.6 -1.6 .7 2.2 4.7 -10.0 Capital consumption allowances 32 Corporate 245.0 256.6 269.2 261.8 264.3 226666..88 227700..99 227744..88 33 Noncorporate 154.6 162.3 169.3 165.9 166.3 167.0 170.5 173.4 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -130.8 -108.5 -140.4 -126.8 -99.4 -151.9 -144.5 n.a. 36 Federal -179.4 -172.9 -199.1 -192.7 -162.6 -209.1 -201.3 n.a. 37 State and local 48.6 64.4 58.7 65.8 63.2 57.3 56.9 n.a. 38 Capital grants received by the United States, net .0 .0 .0 .0 .0 .0 .0 .0 39 Gross investment 469.2 583.0 555.1 565.8 580.8 567.0 539.9 532.9 40 Gross private domestic 501.9 674.0 668.6 676.2 657.6 672.8 666.1 678.0 41 Net foreign -32.7 -91.0 -113.5 -110.4 -76.8 -105.8 -126.2 -145.1 42 Statistical discrepancy -.6 -1.5 .7 -7.6 2.5 -4.7 2.5 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 1985 IItteemm ccrreeddiittss oorr ddeebbiittss 11998822 11998833 11998844 Q3 Q4 Ql Q2 Q3 p 1 Balance on current account -8,051 -45,994 -107,358 -28,969 -31,805 -24,247 -27,696 -30,451 •> --3322,,229977 --2288,,998822 --2233,,441177 --2277,,992277 --3344,,008877 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 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 --885500 --885533 --442200 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 3366 --33,,227744 44,,330055 -384 -570 --33,,448877 37 Statistical discrepancy in recorded data before seasonal adjustment 32,821 16,717 30,486 10,740 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 --112211 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 -1,808 -1,960 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 585 194 190 45 61 10 12 1155 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 • April 1986 3.11 U. S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1985 IItteemm 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. Dec. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 212,193 200,486 217,865 17,438 17,411 17,423 17,732 17,368 17,976 17,024 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 243,952 258,048 325,726 29,425 26,630 26,083 31,764 27,594 30,285 32,888 3 Trade balance -31,759 -57,562 107,861 -11,987 -9,219 -8,660 -14,032 -10,226 -12,310 -15,864 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 1986 TTyyppee 11998822 11998833 11998844 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Total 33,958 33,747 34,934 37,071 37,154 38,295 41,657 42,852 43,191 43,673 2 Gold stock, including Exchange Stabilization Fund1 11,148 11,121 11,096 11,090 11,090 11,090 11,090 11,090 11,090 11,090 3 Special drawing rights2'3 5,250 5,025 5,641 6,510 6,692 6,847 6,926 7,253 7,293 7,441 4 Reserve position in International Monetary Fund2 7,348 11,312 11,541 11,513 11,478 11,686 11,843 11,955 11,952 11,824 5 Foreign currencies4 10,212 6,289 6,656 7,958 7,894 8,672 11,798 12,554 12,856 13,318 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 1986 AAsssseettss 11998822 11998833 11998844 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Deposits 328 190 253 274 223 535 267 340 480 256 Assets held in custody 2 U.S. Treasury securities1 112,544 117,670 118,267 124,400 123,321 120,978 118,000 117,814 121,004 121,995 3 Earmarked gold2 14,716 14,414 14,265 14,251 14,251 14,245 14,242 14,240 14,245 14,193 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 intema- 2. Earmarked gold is valued at $42.22 per fine troy ounce. tional accounts and is not included in the gold stock of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Summary Statistics A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1985 AAsssseett aaccccoouunntt 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. Dec.'' All foreign countries 1 Total, all currencies 469,712 477,090 453,656 458,244 464,002 457,554 456,405 454,216 455,564 457,567 2 Claims on United States 91,805 115,542 113,449 121,267 119,379 122,925 119,431 121,702 115,479 119.531 3 Parent bank 61,666 82,026 78,165 85,259 84,033 86,779 85,447 87,291 82,379 87,172 4 5 O N t o h n e b r a b n a k n s k 2 s in United States2 . | 30,139 33.516 2 1 1 3 , , 6 6 2 6 0 4 2 1 1 4 , , 5 4 5 5 1 7 2 1 0 4 , , 6 73 0 7 9 2 1 2 4 , , 0 05 9 1 5 2 1 0 3 , , 8 1 5 2 5 9 2 1 1 2 , ,6 7 5 5 5 6 2 1 1 1 , , 1 92 7 4 6 1 1 2 9 , , 7 5 9 6 2 7 6 Claims on foreigners 358,493 342,689 320,106 316,048 322,720 313,037 314,717 310,266' 317,241 315.532 7 Other branches of parent bank. 91,168 96,004 95,128 89,826 91,167 89,634 87,658 86,876 89,530 91,397 8 Banks 133,752 117,668 100,397 101,481 104,785 99,005 102,135 98,465 102,766 102,816 9 Public borrowers 24,131 24.517 23,343 23,037 23,110 22,859 23,277 23,366' 23,501 23,381 10 Nonbank foreigners 109,442 107,785 101,238 101,704 103,658 101,539 101,647 101,559 101,444 97,938 11 Other assets 19,414 18,859 20,101 20,929 21,903 21,592 22,257 22,248' 22,844 22,504 12 Total payable in U.S. dollars 361,982 371,508 350,636 350,135 346,112 341,872 335,021 331,299 329,252 335,901 13 Claims on United States 90,085 113,436 111,482 118,709 116,408 120,177 116,535 118,526 112,311 116,463 14 Parent bank 61,010 80,909 77,285 84,273 82,883 85,850 84,236 86,137 81,212 85,942 1 1 1 1 5 6 8 7 Cl O O N ai o t t m h h n s e e b r r o a n b b n r a k f a n o s n 2 k r c s e h i i g e n n s e U o r f n s i p t a ed r en S t t a b te a s n 2 k. . \ 2 7 5 2 3 9 9 , , , 8 5 0 7 3 7 1 7 5 2 7 4 3 8 7 2 , , , 4 5 4 3 2 0 1 7 6 2 2 7 2 1 0 8 8 3 , , , , 6 5 6 5 9 4 9 0 7 4 0 0 2 2 7 2 1 0 1 4 4 , , , , 4 4 5 0 2 4 8 1 1 3 6 5 2 7 1 1 1 4 9 4 9 , , , , 4 7 1 4 6 9 1 1 6 6 3 2 2 7 1 2 1 2 1 0 3 , , , , 4 9 8 4 3 8 8 4 1 7 3 4 20 6 1 1 8 9 9 2 , , , , 6 2 7 5 3 6 2 6 1 4 6 8 2 6 0 2 1 2 8 0 2 , , , , 8 5 2 1 0 8 4 0 8 4 0 5 20 7 1 1 7 0 1 9 , , , , 0 4 2 8 0 9 9 0 2 1 9 8 20 7 1 1 9 2 2 8 , , , , 8 6 1 3 1 8 8 3 3 8 9 2 19 Banks 106,447 93,332 76,940 75,316 75,312 70,946 70,890 67,244 69,505 71,540 20 Public borrowers 18,413 17,890 17,626 17,206 17,019 17,033 17,274 17,320 17,165 17,178 21 Nonbank foreigners 61,474 60,977 55,288 54,335 52,999 51,577 51,274 49,704 49,833 48,407 22 Other assets 12,026 10,666 10,610 9,983 9,908 9,708 9,822 9,965 9,939 9,625 United Kingdom 23 Total, all currencies 161,067 158,732 144,385 149,600 151,456 151,118 150,276 149,607 148,503 24 Claims on United States 27,354 34,433 27,731 31,322 31,140 35,300 32,635 33,852 33,054 25 Parent bank 23,017 29,111 21,918 23,930 24,368 28,200 25,813 26,992 26,874 2 2 6 7 O N t o h n e b r a b n a k n s2 k s in United States2 4,337 5,322 4 1 , , 3 4 8 2 4 9 5 1 , , 7 6 0 9 1 1 5 1 , , 2 5 4 2 7 5 5 1 , , 6 4 2 7 6 4 5 1 , , 4 3 8 3 8 4 5 1 , , 5 2 9 6 1 9 5 1 , , 0 1 4 0 7 6 28 Claims on foreigners 127,734 119,280 111,772 113,185 114,822 110,469 112,514 110,289' 110,228 29 Other branches of parent bank 37,000 36,565 37,897 34,181 33,534 32,610 32,403 32,074 31,576 30 Banks 50,767 43,352 37,443 39,850 40,546 37,7% 40,504 37,858 39,250 31 Public borrowers 6,240 5,898 5,334 4,973 5,056 5,054 5,112 5,482' 5,644 32 Nonbank foreigners 33,727 33,465 31,098 34,181 35,686 35,009 34,495 34,875 33,758 33 Other assets 5,979 5,019 4,882 5,093 5,494 5,349 5,127 5,466' 5,221 34 Total payable in U.S. dollars 123,740 126,012 112,809 112,687 110,452 110,973 108,731 108,024 108,630 35 Claims on United States 26,761 33,756 26,924 30,368 30,087 34,251 31,520 32,605 31,989 36 Parent bank 22,756 28,756 21,551 23,625 23,995 27,897 25,342 26,531 26,472 3 3 7 8 O N t o h n e b r a b n a k n s2 k s in United States2 4,005 5,000 4 1 , , 0 3 1 6 0 3 5 1 , , 1 6 3 0 9 4 4 1 , , 6 4 7 1 7 5 4 1 , , 9 3 9 5 9 5 4 1 , , 9 2 3 4 1 7 4 1 , , 8 1 8 9 0 4 4 1 , , 5 0 1 0 2 5 39 Claims on foreigners 92,228 88,917 82,889 79,457 77,441 73,763 74,286 72,287 73,582 40 Other branches of parent bank 31,648 31,838 33,551 29,357 28,618 26,987 26,581 26,683 26,011 41 Banks 36,717 32,188 26,805 27,317 26,349 24,382 25,458 23,888 26,139 42 Public borrowers 4,329 4,194 4,030 3,587 3,538 3,599 3,633 3,966 3,999 43 Nonbank foreigners 19,534 20,697 18,503 19,196 18,936 18,795 18,614 17,750 17,433 44 Other assets 4,751 3,339 2,9% 2,862 2,924 2,959 2,925 3,132 3,059 Bahamas and Caymans 45 Total, all currencies 145,156 152,083 146,811 143,549 140,786 138,510 135,214 134,951 133,274 141,614 46 Claims on United States 59,403 75,309 77,2% 78,032 75,261 74,441 72,634 73,432 69,765 74,784 47 Parent bank 34,653 48,720 49,449 51,158 48,657 47,815 47,299 47,918 45,811 50,620 4 4 8 9 N O o th n e b r a b n a k n s2 k s in United States2 24,750 26,589 1 16 1 , , 3 5 0 4 3 4 1 1 1 4 , , 9 8 9 7 5 9 1 14 2 , , 2 3 2 7 5 9 1 1 1 4 , , 7 9 1 0 8 8 1 14 1 , , 3 0 2 0 6 9 1 14 0 . , 8 6 5 5 5 9 1 9 4 , , 9 0 1 4 0 4 1 13 0 , , 2 9 1 5 4 0 50 Claims on foreigners 81,450 72,868 65,598 61,933 62,185 60,934 59,277 58,302 60,2% 63,662 51 Other branches of parent bank 18,720 20,626 17,661 15,645 15,669 16,479 15,428 15.856 17,050 19,042 52 Banks 42,699 36,842 30,246 28,482 29,212 27,574 26,964 25,761 26,627 27,973 53 Public borrowers 6,413 6,093 6,089 6,628 6,491 6,428 6,486 6,305 6,328 6,444 54 Nonbank foreigners 13,618 12,592 11,602 11,178 10,813 10,453 10,399 10,380 10,291 10,203 55 Other assets 4,303 3,906 3,917 3,584 3,340 3,135 3,303 3,217 3,213 3,168 56 Total payable in U.S. dollars 139,605 145,641 141,562 138,579 135,474 133,521 129,830 129,476 127,626 136,353 1. Beginning with June 1984 data, reported claims held by foreign branches 2. Data for assets vis-^-vis other banks in the United States and vis-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 • April 1986 3.14 Continued 1985 LLiiaabbiilliittyy aaccccoouunntt 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. Dec.P All foreign countries 57 Total, all currencies 469,712 477,090 453,656 458,244 464,002 457,554 456,405 454,216 455,564 457,567 58 Negotiable CDs3 n.a. n.a. 37,725 37,946 37,679 37,880 39,676 38,044 36,607 34,607 59 To United States 179,015 188,070 147,583 147,386 146,374 144,390 143,252 139,832 142,7% 156,952 60 Parent bank 75,621 81,261 78,739 79,819 80,650 77,472 78,415 75,236 80,857 85,393 61 Other banks in United States 33,405 29,453 18,409 19,424 17,025 16,085 17,006 15,582 15,457 16,874 62 Nonbanks 69,989 77,356 50,435 48,143 48,699 50,833 47,831 49,014 46,482 54,685 63 To foreigners 270,853 269,685 247,907 251,573 256,751 252,6% 250,344 252,252 252,207 243,790 64 Other branches of parent bank 90,191 90,615 93,909 91,103 92,979 90,477 87,854 88,539 88,441 87,332 65 Banks 96,860 92,889 78,203 80,507 82,762 80,931 82,424 82,470r 81,871 77,125 66 Official institutions 19,614 18,8% 20,281 21,703 20,935 21,234 21.02C 21,322' 21,658 19,523 67 Nonbank foreigners 64,188 68,845 55,514 58,260 60,075 60,054 59,049 59,921 60,237 59,810 68 Other liabilities 19,844 19,335 20,441 21,339 23,198 22,588 23,133 24,088 23,954 22,218 69 Total payable in U.S. dollars 379,270 388,291 367,145 365,813 361,407 357,183 350,089 346,572 345,439 352,878 70 Negotiable CDs3 n.a. n.a. 35,227 34,631 33,712 34,025 35,695 33,995 32,838 31,063 71 To United States 175,528 184,305 143,571 142,461 141,128 138,768 136,613 133,956 136,666 151,576 7? Parent bank 73,295 79,035 76,254 77,013 77,537 74,164 74,562 71,753 77,581 82,367 73 Other banks in United States 33,040 28,936 17,935 18,863 16,439 15,464 16,081 15,108 14,893 16,251 74 Nonbanks 69,193 76,334 49,382 46,585 47,152 49,140 45,970 47,095 44,192 52,958 75 To foreigners 192,510 194,139 178,260 179,354 177,130 174,624 167,784 168,377 165,392 161,144 76 Other branches of parent bank 72,921 73,522 77,770 75,923 76,381 73,764 69,606 70,007 69,261 68,746 77 Banks 57,463 57,022 45,123 44,705 43,676 42,850 41,180' 41,559' 39,685 37,569 78 Official institutions 15,055 13,855 15,773 17,278 15,935 16,238 16,224' 16,01(K 15,905 14,354 79 Nonbank foreigners 47,071 51,260 39,594 41,448 41,138 41,772 40,774 40,801 40,544 40,475 80 Other liabilities 11,232 9,847 10,087 9,367 9,437 9,766 9,997 10,244 10,543 9,095 United Kingdom 81 Total, all currencies 161,067 158,732 144,385 149,600 151,456 151,118 150,276 149,607 152,456 148,503 82 Negotiable CDs3 n.a. n.a. 34,413 34,431 34,090 34,151 35,819 33,913 32,708 31,260 83 To United States 53,954 55,799 25,250 25,480 24,167 25,158 25,547 24,958 27,933 31,526 84 Parent bank 13,091 14,021 14,651 14,910 13,434 14,336 14,592 13,893 18,167 21,431 85 Other banks in United States 12,205 11,328 3,125 3,571 2,853 2,839 3,526 2,602 2,453 2,974 86 Nonbanks 28,658 30,450 7,474 6,999 7,880 7,983 7,429 8,463 7,313 7,121 87 To foreigners 99,567 95,847 77,424 81,004 83,480 82,317 79,671 80,646 81,446 76,325 88 Other branches of parent bank 18,361 19,038 21,631 22,565 23,647 22,348 20,233 20,175 21,932 21,192 89 Banks 44,020 41,624 30,436 30,852 32,389 31,518 32,041 33,102 32,200 28,581 90 Official institutions 11,504 10,151 10,154 11,240 10,180 10,823 10,824 10,812 10,519 9,676 91 Nonbank foreigners 25,682 25,034 15,203 16,347 17,264 17,628 16,573 16,557 16,795 16,876 92 Other liabilities 7,546 7,086 7,298 8,685 9,719 9,492 9,239 10,090 10,369 9,392 93 Total payable in U.S. dollars 130,261 131,167 117,497 117,334 114,124 115,065 112,816 111,263 112,681 112,601 94 Negotiable CDs3 n.a. n.a. 33,070 32,715 31,739 31,906 33,380 31,574 30,570 29,337 95 To United States 53,029 54,691 24,105 23,729 22,254 23,119 23,329 22,854 25,581 29,860 % Parent bank 12,814 13,839 14,339 14,472 12,777 13,773 13,995 13,350 17,651 21,057 97 Other banks in United States 12,026 11,044 2,980 3,387 2,687 2,628 3,309 2,479 2,295 2,826 98 Nonbanks 28,189 29,808 6,786 5,870 6,790 6,718 6,025 7,025 5,635 5,977 99 To foreigners 73,477 73,279 56,923 57,504 56,783 56,208 52,245 52,469 52,091 49,780 100 Other branches of parent bank 14,300 15,403 18,294 19,053 19,640 18,241 15,999 15,480 16,687 16,296 101 Banks 28,810 29,320 18,356 17,175 17,249 16,975 15,787 17,053 15,840 14,344 102 Official institutions 9,668 8,279 8,871 9,648 8,430 9,005 9,055 8,877 8,357 7,661 103 Nonbank foreigners 20,699 20,277 11,402 11,628 11,464 11,987 11,404 11,059 11,207 11,479 104 Other liabilities 3,755 3,197 3,399 3,386 3,348 3,832 3,862 4,366 4,439 3,624 Bahamas and Caymans 105 Total, all currencies 145,156 152,083 146,811 143,549 140,786 138,510 135,214 134,951 133,274 141,614 106 Negotiable CDs3 n.a. n.a. 615 344 320 356 686 745 747 610 107 To United States 104,425 111,299 102,955 99,818 98,667 95,775 94,071 92,668 92,138 103,126 108 Parent bank 47,081 50,980 47,162 45,713 47,141 43,372 44,431 42,841 43,198 44,189 109 Other banks in United States 18,466 16,057 13,938 14,742 12,972 12,151 12,081 11,940 11,871 12,760 110 Nonbanks 38,878 44,262 41,855 39,363 38,554 40,252 37,559 37,887 37,069 46,177 111 To foreigners 38,274 38,445 40,320 40,622 39,063 39,658 37,667 38,786 37,306 35,034 112. Other branches of parent bank 15,796 14,936 16,782 16,608 16,640 17,632 16,023 17,201 15,593 14,075 113 Banks 10,166 11,876 12,405 13,611 12,314 11,443 11,420' 11,120' 10,954 10,913 114 Official institutions 1,967 1,919 2,054 1,866 1,939 1,687 1,763' 1,872' 2,278 1,776 115 Nonbank foreigners 10,345 11,274 9,079 8,537 8,170 8,8% 8,461 8,593 8,481 8,270 116 Other liabilities 2,457 2,339 2,921 2,765 2,736 2,721 2,790 2,752 3,083 2,844 117 Total payable in U.S. dollars 141,908 148,278 143,582 139,648 136,823 134,623 130,921 130,681 129,204 137,881 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 June July Aug. Sept. Oct/ Nov. Dec." 1 Total1 177,950 180,525 177,780 180,766 181,175 180,309 178,298 179,928 178,359 By type 2 Liabilities reported by banks in the United States2 25,534 26,089 22,915 22,101 23,224 25,889 27,014 29,326 26,318 3 U.S. Treasury bills and certificates3 54,341 59,976 58,589 60,727 60,921 56,493 54,398 54,331 53,252 U.S. Treasury bonds and notes 4 Marketable 68,514 69,029 73,265 75,053 75,157 76,221 74,972 74,686 77,399 5 Nonmarketable4 7,250 5,800 4,500 4,500 3,550 3,550 3,550 3,550 3,550 6 U.S. securities other than U.S. Treasury securities5 22,311 19,631 18,511 18,385 18,323 18,156 18,364 18,035 17,840 By area 7 Western Europe1 67,645 69,789 70,346 73,378 75,226 74,545 74,257 76,882 74,016 8 Canada 2,438 1,528 1,571 2,010 1,664 1,561 1,586 1,536 1,348 9 Latin America and Caribbean 6,248 8,554 8,467 8,846 9,524 10,532 10,100 10,871 11,123 10 Asia 92,572 93,920 91,406 90,834 89,485 88,282 87,255 85,815 86,192 11 Africa 958 1,264 1,299 1,259 1,110 1,397 1,410 1,629 1,824 12 Other countries6 8,089 5,470 4,691 4,439 4,166 3,992 3,690 3,255 3,198 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 h^ld 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 • April 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 June July Aug. Sept. Oct. Nov. Dec.'' 1 All foreigners 307,056 369,607 407,133 412,861 416,420 420,182 420,801 418,485r 421,452 435,941 2 Banks' own liabilities 227,089 279,087 306,499 317,062 318,944 321,364 323,382 322,801r 324,168 341,645 3 Demand deposits 15,889 17,470 19,571 19,423 17,662 17,735 20,926 18,450' 20,959 21,147 4 Time deposits1 68,797 90,632 110,286 116,331 116,069 119,071 115,221 114,438' 114,364 116,859 5 Other2 23,184 25,874 26,002 25,782 25,875 25,701 29,754 28,932' 30,118 29,381 6 Own foreign offices3 119,219 145,111 150,640 155,526 159,338 158,857 157,481 160,981' 158,727 174,258 7 Banks' custody liabilities4 79,967 90,520 100,634 95,799 97,477 98,818 97,419 95,684 97,285 94,296 8 U.S. Treasury bills and certificates5 55,628 68,669 76,368 73,061 75,396 75,797 73,398 72,163 7733,,116655 6688,,778855 9 Other negotiable and readily transferable instruments6 20,636 17,467 18,747 16,207 16,165 16,610 17,160 16,755 16,979 17,964 10 Other 3,702 4,385 5,518 6,532 5,916 6,412 6,861 6,766 7,140 7,547 11 Nonmonetary international and regional organizations7 4,922 5,957 4,083 5,709 5,019 7,353 7,467 6,766 7,803 5,547 12 Banks' own liabilities 1,909 4,632 1,644 3,928 3,243 5,569 3,275 1,842 1,535 2,347 13 Demand deposits 106 297 254 164 134 252 243 143 252 85 14 Time deposits1 1,664 3,584 1,102 3,023 2,556 4,366 2,261 1,299 1,051 2,064 15 Other2 139 750 288 740 553 951 771 399 233 197 16 Banks' custody liabilities4 3,013 1,325 2,440 1,782 1,777 1,784 4,192 4,924 6,268 3,200 17 U.S. Treasury bills and certificates 1,621 463 916 642 767 742 2,759 3,636 5,069 11,,773366 18 Other negotiable and readily transferable instruments6 1,392 862 1,524 1,140 1,010 1,042 1,433 1,287 1,195 1,464 19 Other 0 0 0 0 0 1 0 1 5 0 20 Official institutions8 71,647 79,876 86,065 81,504 82,828 84,145 82,382 81,412' 83,658 79,644 21 Banks' own liabilities 16,640 19,427 19,039 17,795 17,256 17,720 20,262 21,178' 23,373 20,607 22 Demand deposits 1,899 1,837 1,823 1,891 1,546 1,538 2,151 1,707 2,018 2,075 23 Time deposits1 5,528 7,318 9,374 9,050 9,070 9,334 8,954 10,277' 10,573 10,907 24 Other2 9,212 10,272 7,842 6,853 6,640 6,849 9,157 9,195' 10,783 7,624 25 Banks' custody liabilities4 55,008 60,448 67,026 63,710 65,572 66,425 62,120 60,234 60,284 59,037 26 U.S. Treasury bills and certificates5 46,658 54,341 59,976 58,589 60,727 60,921 56,493 54,398 54,331 5533,,225522 27 Other negotiable and readily transferable instruments6 8,321 6,082 6,966 5,042 4,725 5,291 5,492 5,767 5,848 5,711 28 Other 28 25 84 78 120 213 135 69 105 75 29 Banks9 185,881 226,887 248,897 254,045 257,113 256,645 257,733 257,323' 255,052 276,414 30 Banks' own liabilities 169,449 205,347 225,372 232,319 235,488 234,401 235,106 235,372' 233,228 253,714 31 Unaffiliated foreign banks 50,230 60,236 74,732 76,793 76,150 75,544 77,625 74,391' 74,501 79,456 32 Demand deposits 8,675 8,759 10,556 9,847 8,647 8,594 10,468 9,045 10,043 10,297 33 Time deposits1 28,386 37,439 47,155 49,968 49,919 49,915 48,779 47,833' 46,798 49,246 34 Other2 13,169 14,038 17,021 16,977 17,584 17,035 18,377 17,514' 17,659 19,913 35 Own foreign offices3 119,219 145,111 150,640 155,526 159,338 158,857 157,481 160,981' 158,727 174,258 36 Banks' custody liabilities4 16,432 21,540 23,525 21,727 21,625 22,244 22,627 21,951 21,825 22,700 37 U.S. Treasury bills and certificates 5,809 10,178 11,448 9,745 9,934 9,966 9,952 9,897' 99,,440055 99,,555544 38 Other negotiable and readily transferable instruments6 7,857 7,485 7,236 6,231 6,390 6,569 6,462 5,906 5,853 6,153 39 Other 2,766 3,877 4,841 5,751 5,301 5,710 6,213 6,148 6,567 6,993 40 Other foreigners 44,606 56,887 68,087 71,602 71,460 72,039 73,219 72,984' 74,939 74,337 41 Banks' own liabilities 39,092 49,680 60,444 63,020 62,957 63,674 64,740 64,409' 66,031 64,978 42 Demand deposits 5,209 6,577 6,938 7,520 7,335 7,351 8,064 7,555' 8,646 8,689 43 Time deposits 33,219 42,290 52,655 54,290 54,524 55,456 55,227 55,029' 55,942 54,641 44 Other2 664 813 851 1,211 1,098 867 1,449 1,825 1,444 1,647 45 Banks' custody liabilities4 5,514 7,207 7,642 8,581 8,503 8,365 8,479 8,575 8,907 9,359 46 U.S. Treasury bills and certificates 1,540 3,686 4,029 4,085 3,968 4,169 4,193 44,,223322 44,,336600 44,,224433 47 Other negotiable and readily transferable instruments6 3,065 3,038 3,021 3,793 4,040 3,708 3,774 3,795 4,084 4,636 48 Other 908 483 593 704 495 489 513 548 463 480 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 14,307 10,346 10,476 8,679 8,567 8,903 9,228 9,088 9,152 9,845 1. Excludes negotiable time certificates of deposit, which are included in 5. Includes nonmarketable certificates of indebtedness and Treasury bills "Other negotiable and readily transferable instruments." issued to official institutions of foreign countries. 2. Includes borrowing under repurchase agreements. 6. Principally bankers acceptances, commercial paper, and negotiable time 3. U.S. banks: includes amounts due to own foreign branches and foreign certificates of deposit. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 7. Principally the International Bank for Reconstruction and Development, and regulatory agencies. Agencies, branches, and majority-owned subsidiaries of the Inter-American and Asian Development Banks. foreign banks: principally amounts due to head office or parent foreign bank, and 8. Foreign central banks and foreign central governments, and the Bank for foreign branches, agencies or wholly owned subsidiaries of head office or parent International Settlements. foreign bank. 9. Excludes central banks, which are included in "Official institutions." 4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A59 3.17 Continued 1985 AArreeaa aanndd ccoouunnttrryy 11998822 11998833 11998844 June July Aug. Sept. Oct. Nov. Dec.P 1 307,056 369,607 407,133 412,861 416,420 420,182 420,801 418,485' 421,452 435,941 2 Foreign countries 302,134 363,649 403,049 407,152 411,401 412,829 413,334 411,719' 413,649 430,394 3 117,756 138,072 153,212 153,718 156,132 160,127 157,265 158,893' 163,519 163,380 4 519 585 615 563 567 711 767 613 655 693 Belgium-Luxembourg 2,517 2,709 4,114 4,889 5,743 5,416 5,725 5,262 5,556 5,224 6 509 466 438 727 684 617 778 558 624 514 7 748 531 418 325 349 377 350 594 497 491 8 8,171 9,441 12,701 13,849 15,237 15,626 15,741 15,986' 16,320 15,520 9 5,351 3,599 3,358 4,003 4,389 5,359 5,224 4,366 7,264 4,714 10 537 520 699 605 588 531 593 536 574 663 11 Italy 5,626 8,462 10,762 9,276 9,624 9,537 9,088 9,717' 9,069 9,538 1? 3,362 4,290 4,799 4,386 4,689 4,588 4,568 4,295' 4,361 4,027 13 1,567 1,673 1,548 1,397 1,183 1,156 1,043 1,132 1,008 848 14 388 373 597 635 658 672 641 647 619 651 IS 1,405 1,603 2,082 2,015 2,113 2,034 2,140 2,094' 2,122 2,139 16 1,390 1,799 1,676 2,277 2,559 2,008 1,668 1,760 1,492 1,344 17 29,066 32,246 31,740 29,547 29,835 29,475 29,290 28,495 29,025 28,870 18 296 467 584 631 598 404 516 417 288 429 19 United Kingdom 48,172 60,683 68,671 70,958 70,208 73,562 70,540 73,913' 74,206 76,981 70 Yugoslavia 499 562 602 729 626 622 647 626 675 673 71 Other Western Europe1 7,006 7,403 7,192 6,261 6,004 6,884 7,432 7,403' 8,592 9,326 7? U.S.S.R 50 65 79 31 72 45 37 51 36 106 23 Other Eastern Europe2 576 596 537 614 406 503 477 429 534 628 24 Canada 12,232 16,026 16,048 15,874 16,284 16,739 17,358 16,288' 16,471 17,470 75 114,163 140,088 153,516 158,310 159,011 157,634 157,480 157,227' 155,170 169,060 76 3,578 4,038 4,394 5,081 5,322 5,187 5,634 5,872 5,899 6,029 77 44,744 55,818 56,897 57,406 55,858 55,486 53,694 54,518' 53,398 59,011 78 1,572 2,266 2,370 2,503 2,380 2,741 2,124 2,238 2,377 2,805 79 Brazil 2,014 3,168 5,275 5,187 5,602 5,918 5,894 5,861 5,614 5,521 30 British West Indies 26,381 34,545 36,773 38,965 40,965 38,338 38,931 37,163' 35,863 42,274 31 Chile 1,626 1,842 2,001 1,870 1,910 1,966 1,907 1,940 2,867 2,126 37 Colombia 2,594 1,689 2,514 2,526 2,421 2,543 2,599 2,562 2,920 3,102 33 Cuba 9 8 10 6 10 9 13 64 7 11 34 Ecuador 455 1,047 1,092 1,004 1,046 1,043 1,251 1,029 1,255 1,241 35 670 788 896 963 972 995 1,005 957 1,087 1,071 36 126 109 183 123 194 152 144 122 150 122 37 8,377 10,392 12,506 13,533 13,123 13,381 13,809 13,610 13,948 14,045 38 Netherlands Antilles 3,597 3,879 4,153 4,200 4,025 4,364 4,973 4,666 4,617 4,852 39 4,805 5,924 6,951 7,427 7,462 7,447 7,168 8,251 6,506 7,526 40 1,147 1,166 1,266 1,168 1,113 1,133 1,159 1,093 1,124 1,166 41 759 1,244 1,394 1,415 1,460 1,557 1,576 1,498 1,534 1,549 47 8,417 8,632 10,545 10,471 10,853 10,940 11,121 11,404 11,345 11,919 43 Other Latin America and Caribbean 3,291 3,535 4,297 4,460 4,297 4,435 4,479 4,381' 4,661 4,691 44 48,716 58,570 71,192 70,477 71,715 70,509 73,292 71,643' 71,059 72,280 China 45 203 249 1,153 886 939 1,135 1,973 1,809 11,,338800 11,,559944 46 2,761 4,051 4,975 5,545 5,849 6,047 6,244 6,455 7,429 7,800 47 4,465 6,657 6,594 7,989 7,831 8,012 7,924 7,964 8,181 8,072 48 433 464 507 569 555 484 644 473 562 710 49 857 997 1,033 1,264 1,463 1,337 1,363 1,570 1,381 1,467 50 606 1,722 1,268 1,053 1,011 885 1,189 2,118 1,595 1,611 51 16,078 18,079 21,652 21,103 22,913 22,537 23,597 22,059' 21,689 23,031 S? 1,692 1,648 1,724 1,705 1,493 1,580 1,657 1,751 1,685 1,704 53 770 1,234 1,383 1,443 1,335 1,694 1,607 1,325 1,189 1,132 54 629 747 1,257 1,063 984 1,073 1,029 1,014 1,066 1,354 55 Middle-East oil-exporting countries3 13,433 12,976 16,804 15,052 15,410 14,811 15,352 15,252' 14,941 14,531 56 Other Asia 6,789 9,748 12,841 12,805 11,932 10,916 10,713 9,852 9,961 9,274 57 3,124 2,827 3,396 3,920 3,384 3,501 3,635 3,723 3,989 4,863 58 432 671 647 745 881 737 923 885 780 1,362 59 81 84 118 161 98 162 157 140 145 163 60 292 449 328 332 181 420 370 404 462 388 61 23 87 153 170 87 103 115 136 140 163 67 Oil-exporting countries4 1,280 620 1,189 1,497 1,099 1,092 1,049 1,076 1,407 1,494 63 Other Africa 1,016 917 961 1,015 1,037 986 1,021 1,082 1,056 1,293 64 Other countries 6,143 8,067 5,684 4,854 4,876 4,319 4,303 3,945' 3,440 3,342 65 5,904 7,857 5,300 4,462 4,364 3,850 3,762 3,451' 2,906 2,769 66 All other 239 210 384 392 511 469 541 494 534 573 67 Nonmonetary international and regional organizations 4,922 5,957 4,083 5,709 5,019 7,353 77,,446677 6,766 7,803 55,,554477 68 International 4,049 5,273 3,376 4,698 3,967 6,458 6,542 5,770 6,952 4,532 69 Latin American regional 517 419 587 808 782 739 796 646 580 894 70 Other regional5 357 265 120 203 270 156 129 350 271 121 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 • April 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 June July Aug. Sept. Oct. Nov. Dec.P 1 Total 355,705 391,312 398,845 396,253 390,368 387,997 392,778 380,556' 384,228 402,169 2 Foreign countries 355,636 391,148 398,251 395,543 390,094 387,558 392,395 379,787' 383,616 401,142 3 Europe 85,584 91,927 98,151 100,953 100,377 101,028 105,734 101,668' 106,500 107,714 4 Austria 229 401 433 536 815 703 763 673 614 603 5 Belgium-Luxembourg 5,138 5,639 4,794 5,219 5,740 5,501 6,147 5,882' 6,813 5,697 6 Denmark 554 1,275 648 474 498 492 615 636 558 699 7 Finland 990 1,044 898 896 875 738 905 789' 909 832 8 France 7,251 8,766 9,142 9,969 10,001 10,282 11,029 10,190' 9,794 9,107 9 Germany 1,876 1,284 1,313 1,223 1,115 948 999 1,036 1,354 1,256 10 Greece 452 476 817 1,002 947 959 1,016 %6 854 991 11 Italy 7,560 9,018 9,119 7,520 7,623 6,527 7,436 7,597 7,775 8,835 12 Netherlands 1,425 1,267 1,351 1,339 1,137 1,200 1,297 1,110 1,389 1,269 13 Norway 572 690 675 750 710 683 858 788' 755 701 14 Portugal 950 1,114 1,243 1,156 1,151 1,181 1,211 1,141 1,128 1,048 15 Spain 3,744 3,573 2,884 2,700 2,387 2,156 2,438 2,310' 2,199 1,889 16 Sweden 3,038 3,358 2,220 2,067 2,698 2,496 2,474 2,643' 2,546 2,212 17 Switzerland 1,639 1,863 2,123 2,231 2,669 2,629 3,091 2,604 3,162 3,174 18 Turkey 560 812 1,130 1,208 1,313 1,234 1,303 1,355 1,269 1,206 19 United Kingdom 45,781 47,364 55,352 58,377 56,437 59,280 60,105 57,579' 60,733 63,954 20 Yugoslavia 1,430 1,718 1,886 1,958 1,972 1,954 1,899 1,867' 1,879 1,980 21 Other Western Europe1 368 477 596 775 679 629 699 1,206 1,554 1,006 22 U.S.S.R 263 192 142 297 250 239 199 165' 128 130 23 Other Eastern Europe2 1,762 1,598 1,382 1,255 1,358 1,198 1,252 1,131 1,086 1,126 24 Canada 13,678 16,341 16,093 17,889 16,696 17,005 16,940 15,941' 16,211 16,335 25 Latin America and Caribbean 187,969 205,491 207,649 203,974 200,765 197,106 196,388 190,759' 191,796 202,313 26 Argentina 10,974 11,749 11,043 11,416 11,456 11,293 11,855 11,236' 11,486 11,482 27 Bahamas 56,649 59,633 57,949 59,477 55,610 53,707 53,414 51,236 48,977 56,360 28 Bermuda 603 566 592 563 405 502 480 1,017 565 529 29 Brazil 23,271 24,667 26,315 26,549 26,559 26,441 26,017 25,397' 25,413 25,255 30 British West Indies 29,101 35,527 38,120 36,372 37,436 35,853 35,0% 34,258' 37,129 39,935 31 Chile 5,513 6,072 6,839 6,680 6,663 6,476 6,524 6,145' 6,198 6,587 32 Colombia 3,211 3,745 3,499 3,207 3,210 3,205 3,195 3,210' 3,222 3,259 33 Cuba 3 0 0 0 0 0 0 4 0 0 34 Ecuador 2,062 2,307 2,420 2,493 2,450 2,430 2,486 2,411 2,419 2,401 35 Guatemala3 124 129 158 145 153 149 168 168' 197 194 36 Jamaica3 181 215 252 227 234 228 228 222 222 301 37 Mexico 29,552 34,802 34,824 32,384 32,129 32,375 32,349 31,720' 32,422 32,115 38 Netherlands Antilles 839 1,154 1,350 1,249 1,110 1,135 1,170 1,387 1,071 1,344 39 Panama 10,210 7,848 7,707 6,856 6,985 6,923 7,108 6,526 6,522 6,629 40 Peru 2,357 2,536 2,384 2,286 2,237 2,221 2,206 2,016' 1,990 1,958 41 Uruguay 686 977 1,088 1,013 1,007 1,018 1,035 947 954 958 42 Venezuela 10,643 11,287 11,017 10,996 10,992 11,028 11,052 10,838' 10,876 10,898 43 Other Latin America and Caribbean 1,991 2,277 2,091 2,060 2,129 2,122 2,005 2,022 2,135 2,109 44 60,952 67,837 66,296 63,470 63,242 63,710 6644,,554477 6622,,884477'' 6600,,555511 6655,,886644 China 45 Mainland 214 292 710 358 635 560 1,148 997 748 639 46 Taiwan 2,288 1,908 1,849 1,718 1,540 1,527 1,525 1,329 1,258 1,532 47 Hong Kong 6,787 8,489 7,283 7,237 7,473 7,999 7,718 6,917 6,454 6,768 48 India 222 330 425 310 385 460 461 388 439 450 49 Indonesia 348 805 724 682 631 623 718 653 608 698 50 Israel 2,029 1,832 2,088 2,598 2,053 1,955 1,875 1,901 1,958 1,966 51 Japan 28,379 30,354 29,066 26,529 26,336 27,785 27,002 28,558 26,757 31,103 52 Korea 9,387 9,943 9,285 9,158 9,707 9,337 9,223 9,0%' 8,902 9,107 53 Philippines 2,625 2,107 2,550 2,448 2,454 2,487 2,445 2,239' 2,285 2,221 54 Thailand 643 1,219 1,125 862 746 757 781 756 788 838 55 Middle East oil-exporting countries4 3,087 4,954 5,044 5,120 5,315 4,116 4,845 4,576' 4,247 4,322 56 Other Asia 4,943 5,603 6,147 6,449 5,967 6,104 6,805 5,436 6,106 6,220 57 Africa 5,346 6,654 6,615 6,075 5,957 5,718 5,700 5,463' 5,415 5,423 58 Egypt 322 747 728 626 606 585 634 668 685 715 59 Morocco 353 440 583 592 596 598 592 610 584 575 60 South Africa 2,012 2,634 2,795 2,524 2,402 2,214 2,062 1,968 1,848 1,935 61 Zaire 57 33 18 24 24 25 22 21 21 20 62 Oil-exporting countries5 801 1,073 842 740 743 722 859 674 680 646 63 Other 1,802 1,727 1,649 1,569 1,587 1,574 1,531 1,521' 1,597 1,533 64 Other countries 2,107 2,898 3,447 3,183 3,057 2,991 3,087 3,111' 3,143 3,493 65 Australia 1,713 2,256 2,769 2,498 2,320 2,227 2,304 2,293 2,341 2,454 66 All other 394 642 678 685 737 764 783 818 803 1,039 67 Nonmonetary international and regional organizations6 68 164 594 710 275 438 382 768 612 1,028 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 June July Aug. Sept. Oct.' Nov. Dec.'' 1 Total 333333399999996666666,,,,,,,000000011111115555555 444444422222226666666,,,,,,,222222211111115555555 444444433333331111111,,,,,,,777777766666661111111 444444422222225555555,,,,,,,666666699999992222222 444444422222226666666,,,,,,,222222244444446666666 440022,,116699 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 333333355555555555555,,,,,,,777777700000005555555 333333399999991111111,,,,,,,333333311111112222222 333333399999998888888,,,,,,,888888844444445555555 3333333%%%%%%%,,,,,,,222222255555553333333 390,368 387,997 333333399999992222222,,,,,,,777777777777778888888 380,556 384,228 440022,,116699 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 44444445555555,,,,,,,444444422222222222222 55555557777777,,,,,,,555555566666669999999 66666661111111,,,,,,,555555599999995555555 66666661111111,,,,,,,222222244444441111111 61,239 60,961 66666662222222,,,,,,,111111199999996666666 60,132 60,005 6600,,441177 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 111111122222227777777,,,,,,,222222299999993333333 111111144444446666666,,,,,,,333333399999993333333 111111155555556666666,,,,,,,111111177777774444444 111111166666662222222,,,,,,,888888844444440000000 158,164 155,734 111111155555559999999,,,,,,,555555522222220000000 156,011 158,768 117766,,119900 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222221111111,,,,,,,333333377777777777777 111111122222223333333,,,,,,,888888833333337777777 111111122222223333333,,,,,,,999999966666667777777 111111111111118888888,,,,,,,444444499999993333333 117,446 118,023 111111111111118888888,,,,,,,000000044444448888888 113,117 114,721 111155,,774422 66 DDeeppoossiittss 44444444444444,,,,,,,222222222222223333333 44444447777777,,,,,,,111111122222226666666 44444448888888,,,,,,,333333377777779999999 44444448888888,,,,,,,111111133333335555555 48,786 49,528 44444449999999,,,,,,,444444400000006666666 46,707 47,098 4477,,661122 77 OOtthheerr 77777777777777,,,,,,,111111155555553333333 77777776666666,,,,,,,777777711111111111111 77777775555555,,,,,,,555555588888888888888 77777770000000,,,,,,,333333355555558888888 68,660 68,495 66666668888888,,,,,,,666666644444442222222 66,410 67,623 6688,,113311 88 AAllll ootthheerr ffoorreeiiggnneerrss 66666661111111,,,,,,,666666611111114444444 66666663333333,,,,,,,555555511111114444444 55555557777777,,,,,,,111111100000009999999 55555553333333,,,,,,,666666677777779999999 53,520 53,279 55555553333333,,,,,,,000000011111113333333 51,296 50,735 4499,,882200 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 36,366 38,037' 38,738' 38,076' 37,599 37,521 n.a. 1. U.S. banks: includes amounts due from own foreign branches and foreign 3. Principally negotiable time certificates of deposit and bankers acceptances. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 4. Includes demand and time deposits and negotiable and nonnegotiable regulatory agencies. Agencies, branches, and majority-owned subsidiaries of certificates of deposit denominated in U.S. dollars issued by banks abroad. For foreign banks: principally amounts due from head office or parent foreign bank, description of changes in data reported by nonbanks, see July 1979 BULLETIN, and foreign branches, agencies, or wholly owned 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 less1 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 year1 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 less1 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 12 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 year1 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 1,9% 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 • April 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 .3 .6 .8 1.0 1.0 1.0 1.1 1.0 1.0 1.0 1.2 42 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 Sept. Dec. Mar. June Sept.P 1 28,618 27,512 25,346 31,438 29,447 26,223 24,571 25,083 7 Payable in dollars 24,909 24,280 22,233 28,538 26,479 23,456 21,935 22,425 3 Payable in foreign currencies 3,709 3,232 3,113 2,900 2,968 2,767 2,636 2,658 By type 4 12,157 11,066 10,572 16,488 14,599 11,702 11,468 11,814 5 Payable in dollars 9,499 8,858 8,700 14,602 12,643 9,863 9,523 9,863 6 Payable in foreign currencies 2,658 2,208 1,872 1,886 1,955 1,839 1,946 1,951 7 16,461 16,446 14,774 14,950 14,849 14,521 13,103 13,269 8 10,818 9,438 7,765 7,015 7,005 7,052 5,854 5,576 9 Advance receipts and other liabilities 5,643 7,008 7,009 7,936 7,843 7,469 7,249 7,693 10 Payable in dollars 15,409 15,423 13,533 13,936 13,836 13,593 12,413 12,562 11 Payable in foreign currencies 1,052 1,023 1,241 1,014 1,013 928 690 707 By area or country 1? 6,825 6,501 5,742 6,697 6,818 6,118 5,913 66,,557722 13 Belgium-Luxembourg 471 505 302 428 471 298 351 367 14 709 783 843 910 995 896 865 849 15 491 467 502 521 489 506 474 493 16 748 711 621 605 590 613 597 617 17 715 792 486 514 569 541 566 593 18 United Kingdom 3,565 3,102 2,839 3,470 3,397 3,035 2,821 3,373 19 Canada 963 746 764 825 863 840 850 854 70 Latin America and Caribbean 3,356 2,751 2,596 7,253 5,086 3,147 3,106 2,624 ?1 1,279 904 751 3,052 1,926 1,341 1,107 1,135 77 Bermuda 7 14 13 11 13 25 10 4 n Brazil 22 28 32 33 35 29 27 23 ?4 British West Indies 1,241 1,027 1,041 3,271 2,103 1,521 1,734 1,249 ?5 102 121 213 260 367 25 32 28 26 Venezuela 98 114 124 130 137 3 3 3 77 976 1,039 1,424 1,662 1,777 1,555 1,555 1,728 78 792 715 991 1,174 1,209 1,033 965 1,098 29 Middle East oil-exporting countries2 75 169 170 151 155 124 147 82 30 Africa 14 17 19 16 14 12 14 14 31 Oil-exporting countries3 0 0 0 1 0 0 0 0 32 All other4 24 12 27 35 41 31 30 22 Commercial liabilities 33 Europe 3,770 3,831 3,245 4,052 4,001 33,,551199 33,,448855 33,,889944 34 Belgium-Luxembourg 71 52 62 34 48 37 53 56 35 573 598 437 430 438 401 425 432 36 545 468 427 561 622 590 431 601 37 220 346 268 238 245 272 284 386 38 424 367 241 405 257 233 353 293 39 United Kingdom 880 1,027 732 1,224 1,095 752 740 869 40 Canada 897 1,495 1,841 1,906 1,975 1,727 1,494 1,384 41 Latin America and Caribbean 1,044 1,570 1,473 1,780 1,871 1,717 1,244 1,237 4? Bahamas 2 16 1 1 7 11 12 2 43 67 117 67 110 114 112 77 105 44 Brazil 67 60 44 68 124 101 90 120 45 British West Indies 2 32 6 8 32 21 11 15 46 340 436 585 641 586 654 449922 415 47 Venezuela 276 642 432 628 636 395 309 283 48 9,384 8,144 6,741 5,547 5,285 5,721 5,259 5,197 49 1,094 1,226 1,247 1,429 1,256 1,241 1,232 1,429 50 Middle East oil-exporting countries2-5 7,008 5,503 4,178 2,364 2,372 2,786 2,396 2,099 51 703 753 553 597 588 765 633 570 52 Oil-exporting countries3 344 277 167 251 233 294 265 235 53 All other4 664 651 921 1,068 1,128 1,070 988 988 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 • April 1986 3.23 CLAIMS ON 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 Sept. Dec. Mar. June Sept.? 1 Total 36,185 28,725 34,911 30,939 29,768 28,633 26,873 28,748 2 Payable in dollars 32,582 26,085 31,815 28,148 27,171 26,062 24,244 25,882 3 Payable in foreign currencies 3,603 2,640 3,0% 2,792 2,597 2,571 2,629 2,866 By type 4 Financial claims 21,142 17,684 23,780 20,435 19,122 18,336 16,417 18,805 5 Deposits 15,081 13,058 18,4% 15,626 14,489 14,344 12,576 15,074 6 Payable in dollars 14,456 12,628 17,993 15,187 14,069 13,847 12,020 14,370 7 Payable in foreign currencies 625 430 503 439 420 497 556 704 8 Other financial claims 6,061 4,626 5,284 4,808 4,633 3,992 3,841 3,731 9 Payable in dollars 3,599 2,979 3,328 3,116 3,190 2,427 2,361 2,194 10 Payable in foreign currencies 2,462 1,647 1,956 1,693 1,442 1,565 1,480 1,538 11 Commercial claims 15,043 11,041 11,131 10,505 10,646 10,297 10,456 9,943 12 Trade receivables 14,007 9,994 9,721 9,012 9,177 8,784 9,089 8,406 13 Advance payments and other claims 1,036 1,047 1,410 1,493 1,470 1,513 1,367 1,537 14 Payable in dollars 14,527 10,478 10,494 9,845 9,912 9,787 9,863 9,319 15 Payable in foreign currencies 516 563 637 659 735 510 592 624 By area or country Financial claims 16 Europe 4,596 4,873 6,488 5,783 5,693 5,725 5,427 6,350 17 Belgium-Luxembourg 43 15 37 15 15 29 15 12 18 France 285 134 150 151 126 92 49 130 19 Germany 224 178 163 192 224 196 174 156 20 Netherlands 50 97 71 62 66 72 37 118 21 Switzerland 117 107 38 64 66 46 16 32 22 United Kingdom 3,546 4,064 5,817 5,068 4,795 5,001 4,862 5,657 23 Canada 6,755 4,377 5,989 4,492 4,006 3,957 3,747 3,979 24 Latin America and Caribbean 8,812 7,546 10,234 8,987 8,137 7,600 6,397 7,382 25 Bahamas 3,650 3,279 4,771 3,435 3,282 3,015 2,153 2,241 26 Bermuda 18 32 102 5 6 4 5 4 27 Brazil 30 62 53 84 100 98 % 92 28 British West Indies 3,971 3,255 4,206 4,580 3,985 3,894 3,580 4,487 29 Mexico 313 274 293 232 215 201 206 201 30 Venezuela 148 139 134 128 125 101 100 72 31 Asia 758 698 764 900 %1 856 639 %5 32 Japan 366 153 297 371 353 509 281 725 33 Middle East oil-exporting countries2 37 15 4 7 13 6 6 5 34 Africa 173 158 147 160 210 101 111 103 35 Oil-exporting countries3 46 48 55 37 85 32 25 31 36 All other4 48 31 159 113 114 97 95 26 Commercial claims 37 Europe 5,405 3,826 3,670 3,618 3,801 3,360 3,689 3,294 38 Belgium-Luxembourg 234 151 135 128 165 149 212 158 39 France 776 474 459 411 440 375 408 385 40 Germany 561 357 349 368 374 358 375 340 41 Netherlands 299 350 334 298 335 340 301 286 42 Switzerland 431 360 317 289 271 253 376 208 43 United Kingdom 985 811 809 949 1,063 885 950 785 44 Canada 967 633 829 1,026 1,021 1,248 1,065 1,101 45 Latin America and Caribbean 3,479 2,526 2,695 2,027 2,052 1,973 2,124 2,063 46 Bahamas 12 21 8 14 8 9 11 18 47 Bermuda 223 261 190 88 115 164 65 63 48 Brazil 668 258 493 219 214 210 193 212 49 British West Indies 12 12 7 10 7 6 29 7 50 Mexico 1,022 775 884 595 583 493 616 566 51 Venezuela 424 351 272 245 206 192 224 246 52 Asia 3,959 3,050 3,063 2,901 3,073 2,985 2,721 22,,772266 53 Japan 1,245 1,047 1,114 1,089 1,191 1,154 %8 888844 54 Middle East oil-exporting countries2 905 751 737 703 668 666 593 544 55 Africa 772 588 588 595 470 510 522 494 56 Oil-exporting countries3 152 140 139 135 134 141 139 131 57 All other4 461 417 286 338 229 221 336 265 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 D Ja e n c. . - June July Aug. Sept. Oct. Nov. Dec.? U.S. corporate securities STOCKS 1 Foreign purchases 69,770 60,704 81,580 6,471 7,181 6,366 4,802 7,232 8,409 10,914 64,360 63,628 76,735 6,069 6,522 5,721 4,690 6,560 7,137 8,776 2 Foreign sales 5,410 -2,924 4,844 402 659 645 112 673 1,273 2,137 3 Net purchases, or sales (-) ... 5,312 -3,039 4,757 404 559 644 163 644 1,362 1,972 4 Foreign countries 3,979 -2,975 1,981 72 336 364 170 554 948 1,339 5 Europe -97 -405 -441 26 -3 -41 -120 -82 -85 -105 6 France 1,045 -50 730 5 126 76 29 235 270 283 7 Germany -109 -315 -112 -86 42 18 25 33 47 125 8 Netherlands 1,325 -1,490 -67 49 38 -28 -87 125 107 280 9 Switzerland 1,799 -647 1,577 49 104 295 293 210 579 700 10 United Kingdom 1,151 1,672 355 -62 66 68 34 -31 -70 93 11 Canada 529 493 1,677 132 119 109 -35 78 243 281 12 Latin America and Caribbean. -808 -2,006 238 106 53 35 54 8 -174 227 13 Middle East1 395 -372 313 174 -23 58 -26 -16 384 -25 14 Other Asia 42 -23 24 13 25 9 0 -4 -1 12 15 Africa 24 171 168 -31 -16 1 -34 55 32 44 16 Other countries 17 Nonmonetary international and 98 115 87 -1 100 1 -51 28 -89 165 regional organizations .... BONDS2 24,000 39,853 87,534 5,319 8,502 5,547 7,482 7,401 12,455 9,738 18 Foreign purchases 23,097 26,612 43,515 3,943 4,254 3,741 3,632 2,786' 4,284 4,555 19 Foreign sales 903 13,241 44,019 1,376 4,249 1,806 3,850 4,614' 8,171 5,183 20 Net purchases, or sales (-) ... 888 12,944 44,114 1,243 3,597 2,118 4,176 4,768' 7,813 5,541 21 Foreign countries 909 11,793 39,953 1,199 3,210 1,834 3,949 3,662' 6,825 5,176 -89 207 215 -35 -2 169 42 8 -15 0 22 Europe 344 1,731 2,013 13 182 103 159 308 897 408 23 France 51 93 223 -9 -2 25 -4 0 158 13 24 Germany 583 644 3,992 93 492 243 154 249 804 1,013 25 Netherlands 434 8,520 32,642 1,039 2,391 1,368 3,519 3,036' 4,892 3,696 26 Switzerland 123 -76 203 4 -4 -24 -31 42 110 19 27 United Kingdom 100 390 481 27 39 -81 -64 81 124 55 28 Canada -1,161 -1,026 -2,643 -507 -265 -80 -187 11 -215 -435 29 Latin America and Caribbean. 865 11,,886622 6,070 518 610 465 508 966 975 703 30 Middle East1 0 11 11 0 3 1 0 1 0 4 31 Other Asia 52 0 39 1 3 3 1 6 -5 19 32 Africa 3334 NOothnemr ocnoeutanrtyr ieisn ternational and regional organizations .... 15 297 -95 133 651 -312 -326 -154 358 -358 Foreign securities 35 Stocks, net purchases, or sales (-) -3,765 -1,219 -3,920 -174 -550 -213 -221 -72 -309 -404 36 Foreign purchases 13,281 14,597 20,991 1,632 1,580 1,689 1,564 2,172 2,171 2,726 37 Foreign sales 17,046 15,816 24,911 1,806 2,130 1,902 1,785 2,244 2,480 3,130 38 Bonds, net purchases, or sales (-) -3,239 -4,131 -3,899 -261 -589 305 -420 -689' 162 -120 39 Foreign purchases 36,333 57,312 82,977 6,691 7,147 6,959 6,840 8,538 8,902 8,355 40 Foreign sales 39,572 61,443 86,876 6,952 7,736 6,654 7,260 9,227' 8,740 8,475 41 Net purchases, or sales (-), of stocks and bonds -7,004 -5,350 -7,819 -434 -1,139 92 -641 -761' -147 -524 42 Foreign countries -6,559 -4,961 -8,883 -386 -1,368 302 -876 -748' -370 -859 43 Europe -5,492 -8,740 -9,797 -680 -1,185 -258 -764 -577' -1,062 -406 4 4 4 4 4 4 5 6 7 8 C A O A La a s f t r h i t n a i i e a n c r d a A a c o m u e n r t i r c i a e s a nd Caribbean -1 1 - - , 8 1 , 3 1 1 5 4 2 2 4 5 4 8 0 1 2 - - 1 , 2 1 , 4 4 2 4 0 7 0 5 2 7 2 4 2 -1 1 , , 8 8 7 0 4 5 4 7 2 2 5 3 5 -1 3 5 7 5 1 1 7 3 3 3 4 -7 4 1 8 1 1 1 5 3 8 8 3 0 - 3 1 5 8 3 7 1 7 9 6 8 -3 1 - 2 2 9 1 2 1 2 9 -1 -2 - 9 4 5 7 3 8 6 -2 8 0 3 3 1 1 4 2 7 2 4 - - 3 3 1 5 9 9 4 5 0 4 2 2 6 49 Nonmonetary international and regional organizations -445 -389 1,063 -49 229 -210 235 -13 223 335 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 • April 1986 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1985 1985 11998833 11998844 Country or area D Ja e n c. . - June July Aug. Sept. Oct. Nov. Dec.P Transactions, net purchases or sales (-) during period1 1 Estimated total2 3,693 21,447 29,776 5,757 4,786 -3,345 6,533 -653 2,500 6,462 2 Foreign countries2 3,162 16,444 29,261 5,757 5,364 1,027 3,988 -122 2,276 3,068 3 Europe2 6,226 11,081 4,015 1,025 975 953 958 -701 -941 180 4 Belgium-Luxembourg -431 289 477 17 21 92 49 10 29 -44 5 Germany2 2,450 2,958 1,921 415 725 937 294 17 -101 302 6 Netherlands 375 454 276 10 148 386 127 -126 155 -82 7 Sweden 170 46 976 775 119 -89 -33 -41 -42 -41 8 Switzerland2 -421 635 763 143 -21 72 25 116 -151 -116 9 United Kingdom 1,966 5,234 -2,124 -96 -761 -82 283 -735 -530 50 10 Other Western Europe 2,118 1,466 1,726 -239 743 -363 214 58 -301 111 11 Eastern Europe 0 0 0 0 0 0 0 0 0 0 12 Canada 699 1,526 -216 6 7 -144 106 138 -394 -71 13 Latin America and Caribbean -212 1,413 4,258 205 156 524 562 125 735 90 14 Venezuela -124 14 234 80 0 33 2 91 72 -41 15 Other Latin America and Caribbean 60 528 2,296 123 -7 95 556 110 367 265 16 Netherlands Antilles -149 871 1,729 2 163 397 4 -76 296 -133 17 -3,535 2,377 20,781 4,516 4,307 -416 2,225 244 2,925 2,835 18 Japan 2,315 6,062 18,861 2,666 3,752 875 1,884 1,630 33,,003399 902 19 Africa 3 -67 112 10 10 -1 0 9 11 9 20 All other -17 114 311 -6 -91 111 137 63 -51 25 21 Nonmonetary international and regional organizations 535 5,001 513 -1 -577 -4,372 2,545 -530 223 3,393 22 International 218 4,610 -384 -105 -219 -4,400 1,883 -430 -15 3,001 23 Latin American regional 0 0 18 0 0 0 -1 0 8 7 MEMO 24 Foreign countries2 3,162 16,444 29,261 5,757 5,364 1,027 3,988 -122 2,276 3,068 25 Official institutions 779 515 8,411 2,713 1,788 104 1,064 -1,209 -286 2,714 26 Other foreign2 2,382 15,930 20,850 3,045 3,575 923 2,924 1,087 2,562 355 Oil-exporting countries 77 Middle East3 -5,419 6,277 -1,634 1,422 -1 -1,132 -838 -818 -467 740 28 Africa4 -1 -101 7 0 0 0 0 4 0 2 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 Jan. 31, 1986 Rate on Jan. 31, 1986 Rate on Jan. 31, 1986 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.. 10.80 Jan. 1986 Japan 5.0 Oct. 1983 Venezuela 8.0 Oct. 1985 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 1986 CCoouunnttrryy,, oorr ttyyppee 11998833 11998844 11998855 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Eurodollars 9.57 10.75 8.27 7.89 8.02 8.14 8.08 8.02 7.99 8.02 2 United Kingdom 10.06 9.91 12.16 12.01 11.42 11.49 11.49 11.50 11.66 12.78 3 Canada 9.48 11.29 9.64 9.33 9.16 9.10 8.73 8.85 9.25 10.23 4 Germany 5.73 5.96 5.40 5.31 4.75 4.64 4.77 4.82 4.80 4.65 5 Switzerland 4.11 4.35 4.92 5.07 4.64 4.59 4.53 4.07 4.13 4.08 6 Netherlands 5.58 6.08 6.29 6.29 5.80 5.72 5.89 5.90 5.79 5.71 7 France 12.44 11.66 9.91 9.97 9.79 9.57 9.29 8.95 8.92 8.95 8 Italy 18.95 17.08 14.86 14.37 14.36 13.95 14.16 14.29 14.71 14.88 9 Belgium 10.51 11.41 9.60 8.95 9.50 9.33 8.97 8.66 9.14 9.75 10 Japan 6.49 6.32 6.47 6.29 6.30 6.31 6.47 7.29 7.36 6.54 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 • April 1986 3.28 FOREIGN EXCHANGE RATES Currency units per dollar 1985 1986 CCoouunnttrryy//ccuurrrreennccyy 11998833 11998844 11998855 Aug. Sept. Oct. Nov. Dec. Jan. 1 Australia/dollar1 90.14 87.937 70.026 70.70 68.96 70.25 67.74 68.11 70.00 2 Austria/schilling 17.968 20.005 20.676 19.632 19.949 18.569 18.236 17.658 17.151 3 Belgium/franc 51.121 57.749 59.336 56.543 57.395 53.618 52.474 51.251 49.843 4 Brazil/cruzeiro 573.27 1841.50 6205.10 6714.00 7453.33 8203.57 8913.95 9915.71 11345.26 5 Canada/dollar 1.2325 1.2953 1.3658 1.3575 1.3703 1.3667 1.3765 1.3954 1.4070 6 China, P.R./yuan 1.9809 2.3308 2.9434 2.9093 2.9722 3.0782 3.2086 3.2095 3.2095 7 Denmark/krone 9.1483 10.354 10.598 10.1459 10.2906 9.5880 9.3918 9.1221 8.9468 8 Finland/markka 5.5636 6.0007 6.1971 5.9464 6.0140 5.6836 5.5709 5.4824 5.4131 9 France/franc 7.6203 8.7355 8.9799 8.5323 8.6599 8.0641 7.9095 7.6849 7.4821 10 Germany/deutsche mark 2.5539 2.8454 2.9419 2.7937 2.8381 2.6446 2.5954 2.5122 2.4384 11 Greece/drachma 87.895 112.73 138.40 131.75 136.74 145.74 153.037 150.186 148.69 12 Hong Kong/dollar 7.2569 7.8188 7.7911 7.7906 7.8043 7.7908 7.8042 7.8064 7.8081 13 India/rupee 10.1040 11.348 12.332 11.898 12.126 12.033 12.1010 12.1524 12.243 14 Ireland/pound1 124.81 108.64 106.62 111.43 109.55 117.00 119.19 122.48 124.75 15 Italy/lira 1519.30 1756.10 1908.90 1873.51 1903.42 1785.43 1753.72 1713.50 1663.14 16 Japan/yen 237.55 237.45 238.47 237.46 236.53 214.68 204.07 202.79 199.89 17 Malaysia/ringgit 2.3204 2.3448 2.4806 2.4644 2.4841 2.4529 2.4341 2.4291 2.4489 18 Netherlands/guilder 2.8543 3.2083 3.3184 3.1429 3.1921 2.9819 2.9230 2.8293 2.7489 19 New Zealand/dollar1 66.790 57.837 49.752 53.564 53.285 56.931 57.230 52.633 51.657 20 Norway/krone 7.3012 8.1596 8.5933 8.2487 8.3337 7.9099 7.8076 7.6524 7.5541 21 Portugal/escudo 111.610 147.70 172.07 167.34 172.5 164.59 162.963 160.798 157.99 22 Singapore/dollar 2.1136 2.1325 2.2008 2.2191 2.2268 2.1387 2.1084 2.1213 2.1289 23 South Africa/rand1 89.85 69.534 45.57 43.07 39.49 38.38 37.57 37.05 42.40 24 South Korea/won 776.04 807.91 861.89 885.09 847.46 894.49 893.35 893.13 892.75 25 Spain/peseta 143.500 160.78 169.98 164.49 168.91 161.712 159.658 156.052 152.91 26 Sri Lanka/rupee 23.510 25.428 27.187 27.377 27.430 27.421 27.449 27.420 26.342 27 Sweden/krona 7.6717 8.2706 8.6031 8.3106 8.3907 7.9557 7.8127 7.6817 7.5938 28 Switzerland/franc 2.1006 2.3500 2.4551 2.2962 2.3749 2.1692 2.1306 2.1042 2.0660 29 Taiwan/dollar n.a. 39.633 39.889 40.501 40.465 40.195 39.981 39.906 39.405 30 Thailand/baht 22.991 23.582 27.193 26.889 27.050 26.569 26.315 26.715 26.676 31 United Kingdom/pound1 151.59 133.66 129.74 138.40 136.42 142.15 143.96 144.47 142.44 MEMO 32 United States/dollar2 125.34 138.19 143.01 137.55 139.14 130.71 128.08 125.80 123.65 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
69 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 A77 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
70 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 BOB S. MOORE, Special Assistant to the Board STANLEY J. SIGEL, Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS MICHAEL BRADFIELD, General Counsel JAMES L. KICHLINE, Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel EDWARD C. ETTIN, Deputy Director RICHARD M. ASHTON, Associate General Counsel MICHAEL J. PRELL, Deputy Director OLIVER IRELAND, Associate General Counsel JOSEPH S. ZEISEL, Deputy Director RICKI R. TIGERT, Assistant General Counsel JARED J. ENZLER, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel DAVID E. LINDSEY, Associate Director ELEANOR J. STOCKWELL, Associate Director OFFICE OF THE SECRETARY THOMAS D. SIMPSON, Deputy Associate Director LAWRENCE SLIFMAN, Deputy Associate Director WILLIAM W. WILES, Secretary HELMUT F. WENDEL, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary MARTHA BETHEA, Assistant Director JAMES MCAFEE, Associate Secretary ROBERT M. FISHER, Assistant Director SUSAN J. LEPPER, Assistant Director RICHARD D. PORTER, Assistant Director DIVISION OF CONSUMER PETER A. TINSLEY, Assistant Director AND COMMUNITY AFFAIRS LEVON H. GARABEDIAN, Assistant Director (Administration) GRIFFITH L. GARWOOD, Director JERAULD C. KLUCKMAN, Associate Director GLENN E. LONEY, Assistant Director DIVISION OF INTERNATIONAL FINANCE DOLORES S. SMITH, Assistant Director EDWIN M. TRUMAN, Director LARRY J. PROMISEL, Senior Associate Director DIVISION OF BANKING CHARLES J. SIEGMAN, Senior Associate Director 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 Director' 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 1. On loan from the Federal Reserve Bank of Richmond. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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
147 Federal Reserve Bulletin • April 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, President WILLIAM H. BOWEN, EIGHTH DISTRICT, Vice President 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
73 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, California, President MICHAEL R. WISE, Denver, Colorado, Vice President ELLIOTT G. CARR, Orleans, 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
74 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. SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: ANNUAL STATISTICAL DIGEST REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL 1974-78. 1980. 305 pp. $10.00 per copy. ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. 1981. 1982. 239 pp. $ 6.50 per copy. FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- 1982. 1983. 266 pp. $ 7.50 per copy. ed at least monthly. (Requests must be prepaid.) 1983. 1984. 264 pp. $11.50 per copy. Consumer and Community Affairs Handbook. $60.00 per 1984. 1985. 254 pp. $12.50 per copy. year. FEDERAL RESERVE CHART BOOK. Issued four times a year in Monetary Policy and Reserve Requirements Handbook. February, May, August, and November. Subscription $60.00 per year. includes one issue of Historical Chart Book. $7.00 per Securities Credit Transactions Handbook. $60.00 per year. year or $2.00 each in the United States, its possessions, Federal Reserve Regulatory Service. 3 vols. (Contains all Canada, and Mexico. Elsewhere, $10.00 per year or three Handbooks plus substantial additional material.) $3.00 each. $175.00 per year. HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- Rates for subscribers outside the United States are as tion to the Federal Reserve Chart Book includes one follows and include additional air mail costs: issue. $1.25 each in the United States, its possessions, Federal Reserve Regulatory Service, $225.00 per year. Canada, and Mexico; 10 or more to one address, $1.00 Each Handbook, $75.00 per year. each. Elsewhere, $1.50 each. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in WELCOME TO THE FEDERAL RESERVE. the United States, its possessions, Canada, and Mexico; PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- 10 or more of same issue to one address, $13.50 per year SERVE SYSTEM. August 1985. 30 pp. or $.35 each. Elsewhere, $20.00 per year or $.50 each. THE MONETARY AUTHORITY OF THE FEDERAL RESERVE, THE FEDERAL RESERVE ACT, as amended through August 31, May 1984. (High School Level.) 1985. with an appendix containing provisions of certain WRITING IN STYLE AT THE FEDERAL RESERVE. August 1984. other statutes affecting the Federal Reserve System. 576 93 pp. $2.50 each. pp. $7.00. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT XIII AMERI- REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- CAN-GERMAN BIENNIAL CONFERENCE, March 1985. ERAL RESERVE SYSTEM. REMARKS BY CHAIRMAN PAUL A. VOLCKER, TO THE EMPIRE REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- CLUB OF CANADA AND THE CANADIAN CLUB OF TO- NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Each RONTO, October 28, 1985. volume, $3.00; 10 or more to one address, $2.50 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
75 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 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF The Federal Open Market Committee FINANCIAL DEREGULATION, INTERSTATE BANKING, Federal Reserve Bank Board of Directors AND FINANCIAL SUPERMARKETS, by Stephen A. Federal Reserve Banks Rhoades. February 1984. Out of print. Organization and Advisory Committees 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- U.S. Currency LINES, AND THE LIMITS OF CONCENTRATION IN LO- What Truth in Lending Means to You CAL BANKING MARKETS, by James Burke. June 1984. 14 pp. 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN THE UNITED STATES, by Thomas D. Simpson and STAFF STUDIES: Summaries Only Printed in the Patrick M. Parkinson. August 1984. 20 pp. Bulletin 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF Studies and papers on economic and financial subjects that THE LITERATURE, by John D. Wolken. November are of general interest. Requests to obtain single copies of 1984. 38 pp. the full text or to be added to the mailing list for the series 141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAYmay be sent to Publications Services. MENT COSTS, by William Dudley. November 1984. 15 pp. 142. MERGERS AND ACQUISITIONS BY COMMERCIAL Staff Studies 115-125 are out of print. BANKS, 1960-83, by Stephen A. Rhoades. December 1984. 30 pp. 143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- THE ELECTRONIC FUND TRANSFER ACT: RECENT DENCE ON COMPETITION AND PERFORMANCE IN SURVEY EVIDENCE, by Frederick J. Schroeder. April BANKING MARKETS, by Timothy J. Curry and John T. 1985. 23 pp. Rose. Jan. 1982. 9 pp. 144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON- 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- SUMER CREDIT REGULATIONS: THE TRUTH IN LEND- KET INTERVENTION, by Donald B. Adams and Dale ING AND EQUAL CREDIT OPPORTUNITY LAWS, by W. Henderson. August 1983. 5 pp. Gregory E. Elliehausen and Robert D. Kurtz. May 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 1985. 10 pp. VENTION: JANUARY-MARCH 1975, by Margaret L. 145. SERVICE CHARGES AS A SOURCE OF BANK INCOME Greene. August 1984. 16 pp. AND THEIR IMPACT ON CONSUMERS, by Glenn B. 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Canner and Robert D. Kurtz. August 1985. 31 pp. VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF garet L. Greene. October 1984 . 40 pp. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- by Thomas F. Brady. November 1985. 25 pp. VENTION: OCTOBER 1980-OcTOBER 1981, by Margaret 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) L. Greene. August 1984. 36 pp. INDEXES OF THE MONETARY AGGREGATES, by Helen 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- T. Farr and Deborah Johnson. December 1985. 42 pp. TERNATIONAL TRADE AND OTHER ECONOMIC VARIA- 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF BLES: A REVIEW OF THE LITERATURE, by Victoria S. THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- Farrell with Dean A. DeRosa and T. Ashby McCown. TION RESULTS, by Flint Brayton and Peter B. Clark. January 1984. Out of print. December 1985. 17 pp. 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- DEUTSCHE MARK INTERVENTION, by Laurence R. Jacobson. October 1983. 8 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
76 REPRINTS OF BULLETIN ARTICLES Union Settlements and Aggregate Wage Behavior in the Most of the articles reprinted do not exceed 12 pages. 1980s. 12/84. The Thrift Industry in Transition. 3/85. U.S. International Transactions in 1984. 5/85. The Commercial Paper Market since the Mid-Seventies. 6/82. A Revision of the Index of Industrial Production. 7/85. Foreign Experience with Targets for Money Growth. 10/83. Financial Innovation and Deregulation in Foreign Industrial Intervention in Foreign Exchange Markets: A Summary of Countries. 10/85. Ten Staff Studies. 11/83. Recent Developments in the Bankers Acceptance Market. A Financial Perspective on Agriculture. 1/84. 1/86. Survey of Consumer Finances, 1983. 9/84. The Use of Cash and Transaction Accounts by American Bank Lending to Developing Countries. 10/84. Families. 2/86. Survey of Consumer Finances, 1983: A Second Report. 12/84. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
All Index to Statistical Tables References are to pages A3-A68 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 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 ownership of gross debt, 30 CAPACITY utilization, 46 Receipts and outlays, 28, 29 Capital accounts Treasury financing of surplus, or deficit, 28 Banks, by classes, 18 Treasury operating balance, 28 Federal Reserve Banks, 10 Federal Financing Bank, 28, 33 Central banks, discount rates, 67 Federal funds, 5, 17, 19, 20, 21, 24, 28 Certificates of deposit, 24 Federal Home Loan Banks, 33 Commercial and industrial loans Federal Home Loan Mortgage Corporation, 33, 38, 39 Commercial banks, 16, 19 Federal Housing Administration, 33, 38, 39 Weekly reporting banks, 19-21 Federal Land Banks, 39 Commercial banks Federal National Mortgage Association, 33, 38, 39 Assets and liabilities, 18-20 Federal Reserve Banks Commercial and industrial loans, 16, 18, 19, 20, 21 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 Time and savings deposits, 3 Federal Savings and Loan Insurance Corporation—insured Commercial paper, 23, 24, 37 institutions, 26 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 33 Construction, 44, 49 Finance companies Consumer installment credit, 40, 41 Assets and liabilities, 37 Consumer prices, 44, 50 Business credit, 37 Consumption expenditures, 51, 52 Loans, 40, 41 Corporations Paper, 23, 24 Nonfinancial, assets and liabilities, 36 Financial institutions Profits and their distribution, 35 Loans to, 19, 20, 21 Security issues, 34, 65 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 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
78 GOLD REAL estate loans Certificate account, 10 Banks, by classes, 16, 19, 20, 39 Stock, 4, 54 Financial institutions, 26 Government National Mortgage Association, 33, 38, 39 Terms, yields, and activity, 38 Gross national product, 51 Type of holder and property mortgaged, 39 Repurchase agreements, 5, 17, 19, 20, 21 HOUSING, new and existing units, 49 Reserve requirements, 7 Reserves INCOME, personal and national, 44, 51, 52 Commercial banks, 18 Industrial production, 44, 47 Depository institutions, 3, 4, 5, 12 Installment loans, 40, 41 Federal Reserve Banks, 10 Insurance companies, 26, 30, 39 U.S. reserve assets, 54 Interest rates Residential mortgage loans, 38 Bonds, 24 Retail credit and retail sales, 40, 41, 44 Consumer installment credit, 41 Federal Reserve Banks, 6 SAVING Foreign central banks and foreign countries, 67 Flow of funds, 42, 43 Money and capital markets, 24 National income accounts, 51 Mortgages, 38 Savings and loan associations, 8, 26, 39, 40, 42 (See also Prime rate, 23 Thrift institutions) Time and savings deposits, 8 Savings banks, 26 International capital transactions of United States, 53-67 Savings deposits (See Time and savings deposits) International organizations, 57, 58, 60, 63, 64 Securities (See specific types) Inventories, 51 Federal and federally sponsored credit agencies, 33 Investment companies, issues and assets, 35 Foreign transactions, 65 Investments (See also specific types) New issues, 34 Banks, by classes, 18, 19, 20, 21, 26 Prices, 25 Commercial banks, 3, 16, 18-20, 39 Special drawing rights, 4, 10, 53, 54 Federal Reserve Banks, 10, 11 State and local governments Financial institutions, 26, 39 Deposits, 19, 20 Holdings of U.S. government securities, 30 LABOR force, 45 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities issued by, 19, 20, 26 Loans (See also specific types) Rates on securities, 24 Banks, by classes, 18-20 Stock market, selected statistics, 25 Commercial banks, 3, 16, 18-20 Stocks (See also Securities) Federal Reserve Banks, 4, 5, 6, 10, 11 New issues, 34 Financial institutions, 26, 39 Prices, 25 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 MANUFACTURING Capacity utilization, 46 TAX receipts, federal, 29 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 Monetary and credit aggregates, 3, 12 UNEMPLOYMENT, 45 Money and capital market rates, 24 U.S. government balances Money stock measures and components, 3, 13 Commercial bank holdings, 18, 19, 20 Mortgages (See Real estate loans) Treasury deposits at Reserve Banks, 4, 10, 28 Mutual funds, 35 U.S. government securities Mutual savings banks, 8, 26, 39, 40 (See also Thrift Bank holdings, 18-20, 21, 30 institutions) Dealer transactions, positions, and financing, 32 Federal Reserve Bank holdings, 4, 10, 11, 30 Foreign and international holdings and transactions, 10, NATIONAL defense outlays, 29 30, 66 National income, 51 Open market transactions, 9 Outstanding, by type and holder, 26, 30 OPEN market transactions, 9 Rates, 24 U.S. international transactions, 53-67 PERSONAL income, 52 Utilities, production, 48 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
79 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 JoAnn 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 G. Rives Neblett Paul I. Black, Jr. Memphis 38101 John B. Davis, Jr. Gary H. Stern MINNEAPOLIS 55480 Michael W. Wright Thomas E. Gainor Marcia S. Anderson Robert F. McNellis Helena 59601 Irvine O. Hockaday, Jr. Roger Guffey KANSAS CITY 64198 Robert G. Lueder Henry R. Czerwinski James E. Nielson Wayne W. Martin Denver 80217 Oklahoma City 73125 Patience S. Latting William G. Evans Kenneth L. Morrison Robert D. Hamilton Omaha 68102 Robert D. Rogers Robert H. Boy kin DALLAS 75222 Bobby R. Inman William H. Wallace James L. Stull Peyton Yates Joel L. Koonce, Jr. E H l o u P s a t s o o n 7 7 7 9 2 9 5 9 2 9 Walter M. Mischer, Jr. J.Z. Rowe Lawrence L. Crum Thomas H. Robertson San Antonio 78295 Alan C. Furth Robert T. Parry SAN FRANCISCO 94120 Fred W. Andrew Richard T. Griffith Oren L. Christensen Richard C. Seaver Robert M. McGill Los Angeles 90051 Paul E. Bragdon Angelo S. Carella Portland 97208 Don M. Wheeler E. Ronald Liggett Salt Lake City 84125 John W. Ellis Gerald R. Kelly Seattle 98124 •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
80 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories '"He Helena r«sr Lios*0* Minneapolis t yoi* j (12) jSa'' Lake O^ / De,u • K V ^w I j/ ^T Kansas City I Sr. Lorn* f^"* > >^ichJ5?2£ I L — „ v f w i » "y " I Oklahoma City' . Memphis Vashvillj^.^ - «_ \LittURock Birmingka^®lan(a, © Dallas® rHouston] \Saii Antonio April 1984 ii ii ALASKA ii ii ii ii © "V, i / U i rs y yp 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. • i 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 You Use A Credit Card What Ihithln ^^Alice Lending I J 7 * E * qual Credit Means Ik Opportunity To You Mcf <m</ 11! Credit Rights Debitland In Housing | [ LMMO LE4SIN9 LE4SNG LE4SMG TRUTH IN LE45ING Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1986, March 31). Federal Reserve Bulletin, 1986-04. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_198604
@misc{wtfs_bulletin_198604,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1986-04},
year = {1986},
month = {Mar},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_198604},
note = {Retrieved via When the Fed Speaks corpus}
}