Federal Reserve Bulletin, 1987-03

VOLUME 73 • NUMBER 3 • MARCH 1987 FEDERAL RESERVE BULLETIN £ v®vu BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost • Griffith L. Garwood • James L. Kichline • Edwin M. Truman 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 179 CHANGES IN THE USE OF ers of policies regarding availability of de- TRANSACTION ACCOUNTS AND CASH posited funds, additional regulatory author- FROM 1984 TO 1986 ity to the Federal Reserve to improve the process of check collection and returns, and A comparison of surveys taken in 1984 and authority to the Federal Reserve to estab- 1986 shows changes in the use of transaclish mandatory availability schedules, betion media, including checking and savings fore the House Committee on Banking, accounts, credit cards, electronic pay- Finance and Urban Affairs, January 27, ments, and cash. 1987. 197 INDUSTRIAL PRODUCTION 209 ANNOUNCEMENTS Industrial production increased an estimat- New members appointed to Thrift Institued 0.5 percent in December. tions Advisory Council. Preliminary figures available on income of 199 STATEMENTS TO CONGRESS Federal Reserve Banks. Paul A. Volcker, Chairman, Board of Gov- Issuance of revised list of OTC stocks subernors, provides the views of the Board on ject to margin regulations. important legislative issues, including the Hearing set for bank holding company ap- "emergency" need for measures to bolster plications to underwrite and deal in certain the ability of the insuring agencies to deal securities. with failed or failing bank and thrift institutions, the need for clarifying and expanding Extension of temporary seasonal adjustcertain securities powers of bank holding ment program. companies, the need for improving the Comment period extended on proposals to process of check collection, and the need to reduce the risks on large-dollar payment halt the process of erosion of the basic systems; comments sought on concept of separation of commerce and banking and charging a fee for daylight overdrafts subthe basic unity between state and federal ject to the net debit cap and on daylight banking authorities; Chairman Volcker says overdrafts made on Fedwire; comment rethat action in all these areas is consistent quested on a proposed amendment to Reguwith the desirable longer-run evolution of lation Y implementing amendments to the the financial system and need not be de- Change in Bank Control Act. layed awaiting more comprehensive legislation, before the Senate Committee on Bank- Change in Board staff. ing, Housing, and Urban Affairs, January Admission of five state banks to member- 21, 1987. ship in the Federal Reserve System. 205 Wayne D. Angell, Member, Board of Governors, provides the views of the Board on 213 LEGAL DEVELOPMENTS the issue of delayed availability, specifically the Expedited Funds Availability Act, and Various bank holding company, bank sersays that any legislation that addresses this vice corporation, and bank merger orders; issue should require disclosure to consum- and pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ai FINANCIAL AND BUSINESS STATISTICS A76 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A3 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics A78 FEDERAL RESERVE BOARD A53 International Statistics PUBLICATIONS A69 GUIDE TO TABULAR PRESENTATION, A8i INDEX TO STATISTICAL TABLES STATISTICAL RELEASES, AND SPECIAL TABLES A83 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES A74 BOARD OF GOVERNORS AND STAFF A84 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 This article was prepared by Robert B. Avery, the Board commissioned a second survey. The Gregory E. Elliehausen, Arthur B. Kennickell, 1986 survey, like the 1984 one, collected inforand Paul A. Spindt of the Board's Division of mation on deposit balances, expenditures out of Research and Statistics, with the assistance of accounts with transaction features, uses of credit Maria Halperin and Phoebe Roaf cards, and patterns of cash acquisition and use. By gathering similar data, the 1986 survey not Economic activity in the United States is sup- only showed the changes that had occurred but ported by a very large volume of transactions. also confirmed 1984 findings about the ways The means of payment for these transactions are payment practices vary across families with variprincipally cash (currency and coin), credit ous characteristics. The 1986 survey also incorcards, and accounts with check-writing features at financial institutions. Although good data on aggregate quantities of these means of payment 1. Methods of payment by families classified by are available, information on how these quanti- selected characteristics, 1986 ties are used in the economy is limited. To Percent1 understand better how Americans acquire cash Cash, Propor- Cash and use both cash and other means of payment, Cash checks, Family char- tion and Cash and and the Board of Governors of the Federal Reserve acteristic of all money checks2 credit families orders cards2 System in 1984 commissioned the Survey of Currency and Transaction Account Usage. A Income (dollars) summary of the findings was reported in the Less than February 1986 issue of the FEDERAL RESERVE 10,000 20 20 16 32 32 10,000-19,999. 21 6 14 28 52 BULLETIN. 20,000-29,999. 18 4 6 15 75 30,000-49,999. 27 3 3 14 80 Since 1984, several changes that could affect 50,000 or 14 1 0 3 % the way families pay for their transactions have occurred. Automated teller machines have be- Age of head (years) come more widely available to consumers, and Less than 35 . 25 8 13 18 61 35-44 26 10 8 17 66 the technology for making payments and depos- 45-54 14 4 6 15 76 its electronically has improved. Regulatory and 55-64 17 2 5 25 68 65 or more ... 18 10 5 23 62 macroeconomic changes, meanwhile, have al- Race or tered the environment in which households national origin of choose among transaction media. Interest rates head on consumer deposits have been virtually dereg- Caucasian3 ... 82 5 5 20 71 Nonwhite or ulated, and minimum balance requirements have Hispanic ... 18 19 23 16 42 been eliminated. Also, yields on short-term in- All families vestments have fallen, and gaps between these 1986 100 7 8 19 66 1984 100 6 7 20 67 rates and those paid by financial institutions on interest-bearing checking accounts have nar- 1. Here and in succeeding tables, percentages may not sum to 100 rowed. because of rounding. 2. Checks include personal checks, bank checks, automatic pay- To see how these changes have affected the ments, and electronic payments. 3. Here and in succeeding tables, Hispanics are counted separately payment practices of American families, in 1986 from other Caucasians. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • March 1987 porated additional and improved questions so TRANSACTION ACCOUNTS AND GENERAL that the information gathered was more complete PA YMENT PA TTERNS and precise than that in 1984. A description of the 1986 survey and technical information on Many of the changes between 1984 and 1986 how the data were treated are given in the should have increased the attractiveness of appendix. checking accounts to consumers. In January At the most general level, the 1986 survey 1985, the regulatory minimum balance requireshowed that consumers' choices among the ment for "Super NOW" accounts, which offer transaction media—checks, cash, money orders, unlimited check-writing privileges and pay an and credit cards—are almost unchanged from unregulated market interest rate, was lowered 1984 (see table 1). In both years, all families from $2,500 to $1,000. In January 1986, this reported using at least some cash, and the per- requirement was eliminated, as was the centage using only cash or money orders re- 5VA percent ceiling on regular NOW account mained under 15 percent. However, this general interest rates. From mid-1984 to mid-1986, shortstability covered some significant changes within term market interest rates fell almost 4 percentthe various means of payment. age points, and the gap between typical interest This article first presents findings on how rates paid on NOW account balances and those the holding and the use of transaction accounts paid on other liquid investments narrowed from 4 by families changed between 1984 and 1986. percentage points to less than 1 percentage point. Next, it describes survey evidence on how cred- Meanwhile, many financial institutions adopted it card and electronic payment use changed. new pricing practices, effectively "unbundling" Then it presents findings on changes in the use services by charging fees for check clearing and of cash between 1984 and 1986. Finally, it sum- other transactions while paying a market interest marizes conclusions about the data. Although rate on account balances. These changes renot the focus of the discussion, data on the duced consumers' incentives to manage checkvariability of behavior across families classified ing account balances actively, transferring funds by various characteristics are also presented in out to earn higher interest and moving funds in as most tables. needed for transactions. The changes should also 1. Methods of payment as a percentage of aggregate household expenditures 1984 1986 Credit cards Money orders Other checking 1 • Other checking Money orders 9 7 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 181 2. Monthly use of money market accounts and savings accounts by families classified by selected characteristics, 1986 PPrrooppoorr-- FFaammiilliieess Balance (dollars)1 OOwwnneerrss w N it u h m dr b a e w r a o l f s 2 Av d e r r a a w ge a l si ( z d e o l o la f r w s) i 2 t h- rr MM aattii ee oo aa nn oo ff oowwnniinngg wwiitthh-ttiioonn ooff aallll wwrriittiinngg FFaammiillyy cchhaarraacctteerriissttiicc tthheessee ddrraawwaallss ffaammiilliieess cchheecckkss ((ppeerrcceenntt)) aaccccoouunnttss ((ppeerrcceenntt)) ttoo ((ppeerrcceenntt)) Mean Median Mean Median Mean Median iinnccoommee ((ppeerrcceenntt))11 Income (dollars) Less than 10,000 20 36 5,746 1,965 28 3 3 389 50 60 10,000-19,999 21 47 6,803 898 38 4 2 216 126 20 20,000-29,999 18 61 8,062 1,700 17 3 1 585 194 8 30,000-49,999 27 70 7,729 2,675 33 3 2 660 109 10 50,000 or more 14 87 31,217 9,800 34 5 2 1,548 481 16 Age of head (years) Less than 35 25 62 4,455 975 31 3 2 712 125 12 35-44 26 55 9,249 1,925 28 3 2 703 133 9 45-54 14 62 10,072 3,352 32 6 2 341 101 8 55-64 17 60 20,977 2,500 38 3 2 922 132 14 65 or more 18 60 20,764 9,975 24 6 3 977 321 55 Race or national origin of head Caucasian 82 62 13,921 3,000 29 4 2 802 150 20 Nonwhite or Hispanic . 18 48 2,213 1,001 40 3 2 445 125 9 All families 1986 100 59 12,261 2,500 30 4 2 736 138 19 19843 100 69 13,664 3,107 18 3 1 1,322 401 13 1. For account owners. 3. Dollar amounts for 1984 are computed in 1986 dollars. 2. For families using the account. Withdrawals are net of transfers, cash withdrawals, and investments. have encouraged consumers to consolidate their these accounts (see table 2). Data on monetary funds in fewer accounts, particularly if the size of aggregates, however, show account holdings— service charges decreases as account balances which include nonhousehold balances—to have increase. increased over the period. This inconsistency suggests that the survey data on outstanding Account Activity balances contain some measurement error. For example, in both surveys, some families appar- Data from the 1984 and 1986 surveys support ently included time deposits with savings and some but not all of these expectations. The share money market accounts or the latter accounts of monthly family expenditures made by six with secondary checking accounts, distorting major means of payment, displayed in chart 1, survey estimates. Expenditure data, which are changed little from 1984 to 1986. The most signif- largely unaffected by measurement error in the icant change was that, in 1986, families used their account balances, are believed to be consideramain checking account—that is, the checking bly more accurate. The surveys suggest that in account the family used most frequently—for a both 1984 and 1986 savings and money market smaller, rather than a larger, percentage of their accounts had limited roles in transactions. Moretotal spending than they had in 1984. However, over, aggregate household expenditures accountother findings, which are discussed below, are ed for by payments out of savings and money consistent with the conjecture that checking ac- market accounts declined over the two-year pericounts, in comparison with savings and money od. Indeed, a 21 percent real decline in the market accounts (MMDAs and MMMFs), were reported dollar amount transferred between more attractive to consumers in 1986 than in these accounts and checking accounts (not 1984. shown) reinforces the conclusion that there was The survey data show a reduction in the per- a diminished role for money market and savings centage of families owning savings and money accounts as temporary repositories for funds not market accounts and a decline in balances held in needed for transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 1987 The data show little evidence of the expected (mostly interest-bearing NOW and Super NOW increased concentration of balances or expendi- accounts) over the two years. As measured by tures in families' main checking accounts. In the surveys, however, total estimated family fact, from 1984 to 1986 the average account bal- checking account balances—driven by a threeance fell, and payments made from these accounts fold increase of funds in secondary accounts— as a percentage of income fell almost 6 percent- increased almost 28 percent in real terms from age points (see table 3). Other measures of 1984 to 1986. This increase is within 3 percentage activity, such as the average size of a check and points of the aggregate growth rate of the sum of the average number of checks written per month, other checkable deposits (which are mostly held were virtually unchanged over the two years. by families) and the estimated family component The decline in the use of savings and money of demand deposits. Over the same period, the market accounts was offset by an increase in the survey data show an 8 percent decline in the total use of families' secondary checking accounts payments made from checking accounts. The net rather than their main accounts. The percentage effect was that average withdrawals from all of families owning secondary checking accounts checking accounts fell from 74 percent of averincreased from 1984 to 1986, and these accounts age checking account balances in 1984 to 54 were used more actively in 1986 than in 1984 (see percent in 1986. Thus total family checking accounts in the survey, which as of June 1986 held table 4). Although families reported a decline in slightly less than half of aggregate checking acthe average total number of accounts at financial count balances, increased in importance as vehiinstitutions, the number of checking accounts cles for family saving and diminished in importhey owned rose slightly. tance as media for transactions. On the surface, these findings on expenditures may appear inconsistent with data on real changes in aggregate balances in checking ac- Interest Payments and Service Charges counts, which show increases of 9 percent in demand deposits (mostly non-interest-bearing) Evidence shows that some changes in bank interand 37 percent in other checkable deposits est payments and service charges had resulted 3. Monthly use of main checking accounts by families classified by selected characteristics, 1986 PPrrooppoorr-- FFaammiilliieess Acco (d u o n l t l a b rs a ) l 1 a nce OOwwnneerrss Number of checks2 A ch v e e c r k a g ( e d o s l i l z a e r s o ) f 2 rr MM aattii ee oo aa nn oo ff ttiioonn ooff aallll oowwnniinngg wwrriittiinngg wwiitthh-- FFaammiillyy cchhaarraacctteerriissttiicc ffaammiilliieess tthheessee aacc-- cchheecckkss ddrraawwaallss ((ppeerrcceenntt)) ((pp cc ee oo rr uu cc nn ee tt nn ss tt )) Mean Median ((ppeerrcceenntt)) Mean Median Mean Median iinncc tt oo oo mm ee ((ppeerrcceenntt))22 Income (dollars) Less than 10,000.... 20 64 849 400 90 10 9 137 52 114 10,000-19,999 21 80 1,009 400 99 15 10 107 58 68 20,000-29,999 18 90 1,025 558 % 18 13 100 53 47 30,000-49,999 27 94 1,373 901 99 18 15 140 75 48 50,000 or more 14 99 2,1% 1,500 99 22 20 181 88 41 Age of head (years) Less than 35 25 79 920 500 % 16 13 87 58 62 35-44 26 83 1,271 500 98 21 16 149 63 52 45-54 14 91 1,253 800 95 19 15 151 66 54 55-64 17 93 1,593 900 98 14 10 170 68 55 65 or more 18 85 1,514 1,096 98 14 10 114 77 83 Race or national origin of head Caucasian 82 91 1,311 700 98 17 14 130 65 61 Nonwhite or Hispanic 18 58 1,143 450 93 14 12 153 74 63 All families 1986 100 85 1,291 650 97 17 14 133 65 61 19843 100 87 1,749 580 94 16 14 151 78 67 1. For account owners. 3. Dollar amounts for 1984 are computed in 1986 dollars. 2. For families using the account. Withdrawals are net of transfers, cash withdrawals, and investments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 183 4. Monthly use of other checking accounts by families classified by selected characteristics, 1986 MMeeaann PPrrooppoorr-- FFaammiilliieess Balance (dollars)1 OOwwnneerrss Number of checks2 A ch v e e c r k a g ( e d o s l i l z a e r s o ) f 2 rraa ww tt ii ii tt oo hh -- ooff oowwnniinngg ttiioonn ooff aallll wwrriittiinngg ddrraawwaallss FFaammiillyy cchhaarraacctteerriissttiicc tthheessee ffaammiilliieess aaccccoouunnttss cchheecckkss ttoo ((ppeerrcceenntt)) ((ppeerrcceenntt)) Mean Median ((ppeerrcceenntt)) Mean Median Mean Median ((pp iinn eerr cc cc oo ee mm nn ee tt)) 22 Income (dollars) Less than 10,000 20 6 830 500 88 7 6 45 57 47 10,000-19,999 21 12 2,623 939 79 8 3 370 138 92 20,000-29,999 18 15 4,585 794 73 10 5 130 58 21 30,000-49,999 27 33 9,787 814 65 14 8 117 63 18 50,000 or more 14 46 4,251 1,000 85 13 10 237 158 42 Age of head (years) Less than 35 25 19 1,269 500 64 10 7 151 58 26 35-44 26 20 1,359 650 77 8 4 255 180 36 45-54 14 29 2,017 890 84 13 11 142 125 57 55-64 17 29 6,588 1,000 85 12 11 148 79 31 65 or more 18 16 27,624 1,750 58 16 5 265 44 31 Race or national origin of head Caucasian 82 24 6,551 814 75 11 7 185 86 35 Nonwhite or Hispanic 18 11 2,324 591 75 14 10 193 58 39 All families 1986 100 22 6,162 814 75 11 7 186 86 36 19843 100 20 2,683 695 60 9 6 316 130 31 1. For account owners. 3. Dollar amounts for 1984 are computed in 1986 dollars. 2. For families using the account. Withdrawals are net of transfers, cash withdrawals, and investments. from the deregulation of checking accounts by centage points, from 41 percent to 47 percent, mid-1986, although these changes were not as but the percentage receiving interest was undramatic as one might have expected (see table 5). changed at 39 percent. Additional evidence The percentage of families reporting the shows that consumers responded to the pricing payment of fees or service charges on their changes that occurred. Almost one-half of the main checking account increased almost 6 per- 1986 families reported keeping higher balances in their main checking accounts than they would 5. Location, interest payments, and service charges otherwise have done to avoid or reduce fees. for main checking account, 1984 and 1986 Indeed, both the mean and median balances held Percent in accounts with service charges rose substan- Item 1984 1986 tially between 1984 and 1986 so that the share of total main checking account balances held in Location of account Commercial bank 72 67 these accounts almost doubled, from 22 percent Savings and loan 20 23 Credit union or brokerage house 8 11 to 38 percent (not shown). Moreover, at least some of these new balances appear to be "idle," Interest and service charge payments Interest only 29 27 because the share of the total main checking Service charges only 31 35 Neither interest nor service charges 31 26 account expenditures made from accounts with Both interest and service charges 10 12 service charges increased only half as much as Balance in account kept higher to avoid fees n.a. 49 their share of balances. Account characteristic Interest rate dependent on balance1 n.a. 74 Service charge2 USE OF CREDIT CARDS, MONEY ORDERS, Dependent only on account balance — 34 30 Dependent only on number of checks .. 24 31 AND ELECTRONIC PAYMENTS Dependent on both checks and account balance 22 24 Flat or dependent on other factors 20 16 Credit Cards Overdraft protection n.a. 43 n.a. Not available. The use of credit cards as a method of payment 1. For all accounts paying interest. 2. For all accounts paying service charges. rose substantially from 1984 to 1986: total month- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 1987 6. Monthly use of credit cards by families classified by selected characteristics, 1986 Families Number of cards Families Number of transactions owning per family1 using per family2 Family characteristic credit credit cards cards (percent) Mean Median (percent)1 Mean Median Income (dollars) Less than 10,000 42 65 10,000-19,999 59 76 20,000-29,999 80 81 30,000-49,999 83 89 50,000 or more 97 87 Age of head (years) Less than 35 68 85 35-44 69 88 45-54 83 77 55-64 71 84 65 or more 69 71 Race or national origin of head Caucasian 83 Nonwhite or Hispanic 74 Credit card payment practice3 Revolves 100 84 Does not revolve 100 79 All families 1986 82 1984" 76 1. For credit card owners. 3. For families who own bank or store credit cards. 2. For families using credit cards during the month. 4. Dollar amounts for 1984 are computed in 1986 dollars. ly credit card charges were more than 27 about the same proportion as in the 1977 and percent higher in 1986 than in 1984 in real terms. 1983 surveys of consumer finances. Considering This increase stemmed primarily from an in- the apparent stability in the proportion of famcrease in the proportion of credit card owners ilies that revolve their accounts, much of the rise that used credit cards in the preceding month, in credit card debt since 1984 may reflect inalthough average monthly credit card charges creased use of cards as a means of payment per family also increased slightly (table 6). The rather than as a source of credit per se. rates for credit card ownership were the same in 1986 as they had been two years before, and the Money Orders ratio of charges to income for users and their average number of charges per month were virtu- Both surveys collected limited information on ally unchanged. the use of money orders. In the aggregate, mon- Credit cards, however, are not simply a substiey orders are a relatively unimportant means of tute for cash and checks as a means of payment. payment (see table 7). However, some groups of Banks and stores typically offer their credit card the population, particularly nonwhites and Hisholders a second option. Besides using the acpanics and low-income families, used money count as a means of payment by paying the orders for a significant proportion of expendibalance in full at the end of the statement period, tures. Some evidence also suggests that the use the card owner can "revolve" the account by of money orders has increased since 1984. making partial payment and financing the balance. Data from the 1986 survey, with information from other surveys, permit analysis of Electronic Fund Transfer Services changes in the use of credit cards as a means of payment and a source of debt financing. Overall, While the technology to send and receive payabout half of all holders of bank and store credit ments electronically has improved in recent cards reported revolving their accounts in 1986, years, data on consumer acceptance of such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 185 6. Continued Amount per Total amount charged Total amount of FFaammiilliieess transaction per family monthly transactions rreevvoollvviinngg FFaammiillyy cchhaarraacctteerriissttiicc (dollars)2 (dollars)2 to monthly income2 ccrreeddiitt ccaarrdd aaccccoouunnttss Mean Median Mean Median Mean Median ((ppeerrcceenntt))33 Income (dollars) Less than 10,000 44 29 158 60 31 17 59 10,000-19,999 70 31 207 100 17 7 55 20.000-29,999 44 20 182 115 9 6 36 30.000-49,999 60 39 330 175 11 6 60 50,000 or more 86 47 867 550 15 9 33 Age of head (years) Less than 35 53 30 297 150 15 8 60 35-44 65 36 388 150 11 5 53 45-54 80 35 421 157 14 5 42 55-64 67 41 522 300 17 10 52 65 or more 47 38 258 120 16 8 30 Race or national origin of head Caucasian 61 35 390 170 15 7 46 Nonwhite or Hispanic 69 50 278 100 12 7 62 Credit card payment practice3 Revolves 61 30 319 150 13 7 100 Does not revolve 68 40 453 200 16 9 0 All families 1986 62 35 374 150 14 7 49 19844 59 33 360 165 13 7 n.a. services have been limited. Information collect- growth in the proportion of families having autoed in surveys of consumer attitudes conducted in matic payment of a mortgage, a utility bill, or 1981 and 1983 is comparable to data from the another payment. 1984 and 1986 surveys. The data from the 1986 Automated teller machines (ATMs) are now survey are summarized in table 8. The data show widely available. More than 61,000 were estimatno increase in the growth of direct deposit to ed to have been installed by the end of 1985. family accounts from 1981 to 1986 and only small ATMs generally provide consumers with greater 7. Monthly use of money orders by families classified by selected characteristics, 1986 Mean ratio of Families using Average size of money order Proportion of all Average number Family characteristic families (percent) mo ( n p e e y r ce o n rd t) e rs of money orders1 mo (d n o e l y la r o s r ) d 1 er e f x a p m e i n ly d it i u n r c e o s m t e o (percent) Income (dollars) Less than 10,000 20 20 3 72 43 10,000-19,999 21 20 2 117 23 20,000-29.999 18 11 4 111 17 30,000-49,999 27 11 2 334 20 50,000 or more 14 4 3 184 14 Age of head (years) Less than 35 25 21 3 143 23 35-44 26 17 3 218 32 45-54 14 9 3 79 18 55-64 17 8 2 85 19 65 or more 18 8 3 119 44 Race or national origin of head Caucasian 82 9 3 170 25 Nonwhite or Hispanic 18 33 3 129 30 All families 1986 100 14 3 153 27 19842 100 15 2 147 16 1. For families using money orders. 2. Dollar amounts for 1984 are computed in 1986 dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 1987 8. Use of electronic fund transfer services by States is available. Since 1984, cash held outside families classified by selected characteristics, the U.S. Treasury, Federal Reserve Banks, and 1986' commercial banks has grown less rapidly than Percent checkable deposits at financial institutions. To determine if this less rapid growth reflects a Uses direct Uses automatic Family characteristic deposit2 payment2 change in the way people pay for goods and services, one needs a better understanding of how Income (dollars) Less than 10,000 29 19 cash is used in the economy. 10,000-19,999 33 17 20,000-29,999 30 27 The 1984 and 1986 surveys provide much 30,000-49,999 34 36 information on patterns of cash acquisition and 50,000 or more 34 40 use. Although the 1984 survey collected some Age of head (years) Less than 35 23 2244 information on sources and methods used to 35-44 27 27 45-54 24 44 acquire cash, these data could not be used to 55-64 31 37 assess the check-processing burden and other 65 or older 59 14 costs associated with individuals' cash acquisi- Race or national origin of head tion practices. Information that can be used for Caucasian 34 28 this purpose was obtained in 1986. The 1986 Nonwhite or Hispanic ... 19 28 survey also provided information on cash held All families 32 28 for nontransaction purposes, which the 1984 1. Comparable figures are not available for 1984. survey did not. 2. For families owning at least one account at a financial institution. In this part of both surveys, the unit of observation was the individual respondent rather than flexibility in gaining access to their accounts and obtaining cash than do traditional bank offices. 9. Monthly use of automated teller machines (ATMs) The proportion of account-owning families with by families classified by selected characteristics, ATM access cards doubled between 1981 and 1986 1983. Since 1984, the proportion of families own- OOwwnneerrss ing ATM cards has not changed significantly, but FFaammiilliieess uussiinngg Number of ATM the proportion using ATMs has increased 8 per- oo AA ww TT nn MM iinngg AATTMM ttoo cash withdrawals2 FFaammiillyy cchhaarraacctteerriissttiicc wwiitthh-aacccceessss centage points (see table 9). The use of ATMs ccaarrdd11 ddrraaww ccaasshh appears to be sensitive to relative prices: families ((ppeerrcceenntt)) ((ppeerrcceenntt)) Mean Median that must pay more for an ATM transaction than Income (dollars) for a check are less likely than other families to Less than 10,000.... 32 68 5 4 10,000-19,999 33 67 4 4 use an ATM. Among those who use ATMs, 20,000-29,999 46 54 6 4 however, families with higher ATM fees do not 30,000-49,999 55 72 5 4 50,000 or more 60 79 4 4 use ATMs less frequently than other families. Age of head (years) Many of these ATMs are parts of networks, Less than 35 54 82 6 4 35-44 55 71 5 4 which allow consumers to use ATMs of other 45-54 56 74 4 3 financial institutions. These networks have 55-64 32 58 4 2 65 or older 28 34 4 4 grown rapidly. Until recently, they existed only Race or national in a few large metropolitan areas. In 1986, 56 origin of head percent of families with ATM cards reported Caucasian 45 70 5 4 Nonwhite or having access to ATMs that were part of a Hispanic 50 60 4 4 network, and about half of these families used ATM transaction fee another institution's ATM at some time. More than check ... 100 40 6 5 Same as check 100 75 5 4 Less than check 100 80 4 4 THE ACQUISITION AND USE OF CASH All families 1986 46 69 5 4 1984 44 61 6 4 Although cash is a highly suitable means of payment for many transactions, little information 1. For families owning at least one transaction account. 2. For families who used an ATM to withdraw cash during the on how it is acquired and used in the United month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 187 the family because respondents were expected to 3. Percentage of aggregate cash acquired, by source have more accurate knowledge of their own cash transactions than of the transactions of other 1986 family members. Thus the reference population for this part of the surveys was all adult U.S. residents. Sources and Methods of Cash Acquisition According to the 1986 survey, most of the cash acquired by individuals for use in transactions is withdrawn from the cash held by depository financial institutions. Most individuals, about 61 percent, acquired cash at a financial institution, by cashing a check or by withdrawing funds from their savings account (see chart 2). Another 13 percent of individuals acquired cash from an ATM. These two sources together provided about 80 percent of the total cash acquired by all individuals (see chart 3). The cash inventories of business enterprises, stores and employers, provided about 14 percent of the cash acquired by individuals. percent of the population acquired currency by The 1986 survey also showed that check cash- cashing a check drawn on one of their own ing is the primary method used by individuals to accounts and 47 percent by cashing a check acquire cash (see tables 10 and 11). About 24 received from someone else. The total volume of checks cashed by individuals to acquire currency represented a substantial portion of the total 2. Percentage of individuals using various sources number of checks cleared through the U.S. of cash check-processing system. At the time of the survey, individuals cashed an estimated 550 mil- 1986 lion checks per month to acquire currency. These checks amounted to nearly 16 percent of the estimated total monthly volume of items processed through the check-clearing system at that time. The cost of this processing burden was significant: assuming check production and processing costs averaged at least 25 to 50 cents per item, the total cost of checks used to obtain cash was between $137 million and $257 million per month, 0.2 percent to 0.4 percent of the amount of cash acquired using checks. The Rate of Cash Acquisition and Use To use cash for transactions, individuals must maintain an inventory of it that they deplete by making payments and replenish periodically by acquiring more cash. Graphically, the time pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Federal Reserve Bulletin • March 1987 10. Distribution of individuals acquiring cash and of file of a person's cash inventory will have a aggregate cash acquired, by source and method sawtooth pattern, with each tooth representof acquisition, 19861 ing one cash-acquisition occasion: the distance Percent between teeth is determined by the frequency of cash acquisitions, and the size of each tooth is Source and method of Individuals2 Aggregate cash cash acquisition determined by the amount obtained on a repre- Financial institution sentative occasion (see chart 4). The 1984 and Check drawn on own 1986 surveys asked respondents about cash acaccount 17 16 Check drawn on other quisition and use in two ways: (1) What was the account 37 47 Other 8 6 respondent's "typical" behavior? and (2) What was the behavior on the most recent occasion of ATM 13 10 obtaining cash? Although the estimates of typical Store Check drawn on own behavior and of most recent behavior are similar, account 6 3 the two measures reflect different concepts (see Check drawn on other account 4 4 appendix). Employer or own business According to the survey information on typical Check drawn on own account 1 0 behavior, in 1986 individuals acquired cash less Check drawn on other frequently, but they acquired somewhat larger account 5 7 Other 1 1 amounts each time than they did in 1984 (see Family member or friend table 12). In 1986, the average time between cash Check 3 3 Other 7 3 acquisitions was 16 days, whereas in 1984 it was 12 days. The estimated average amount of cash Total 100.0 100.0 individuals had on hand before they obtained 1. Comparable figures are not available for 1984. more was $36 in 1986, the same as in 1984; but in 2. Items do not add to 100 percent because of rounding. 11. Method most recently used to acquire currency by individuals classified by selected characteristics, 1986 Percent Method most recently used PPPrrrooopppooorrr--tttiiiooonnn ooofff Bank Family member Employer Store IIInnndddiiivvviiiddduuuaaalll ccchhhaaarrraaacccttteeerrriiissstttiiiccc aaallllll rrreee--- AATTMM or friend or own business ssspppooonnn--dddeeennntttsss With- Cash Own Other Own Other Own Other drawal Check Other paycheck check slip check check ment check check Family income (dollars) Less than 10,000 17 12 33 6 8 9 6 1 7 3 3 11 I 10,000-19,999 21 16 41 9 9 0 6 0 8 2 7 2 20,000-29,999 17 19 42 7 13 3 5 0 4 0 5 2 1 30,000-49,999 31 18 35 8 15 2 8 1 3 1 6 3 1 50,000 or more 14 21 32 7 20 2 8 1 2 0 7 1 Age (years) Less than 35 36 7 36 9 14 1 9 1 1100 33 6 4 1 35-44 21 15 36 5 17 2 6 0 4 0 10 5 1 45-54 11 20 35 3 21 3 11 1 3 0 3 0 55-64 18 26 40 8 9 5 7 0 0 1 2 2 65 or more 16 30 36 11 5 4 1 0 0 1 6 6 Sex Male 43 17 43 5 11 3 6 1 5 1 4 4 Female 57 17 32 9 14 3 7 1 5 1 7 3 Race or national origin Caucasian 82 18 36 7 14 1 8 1 3 1 7 3 Nonwhite or Hispanic.... 18 12 38 10 8 9 2 1 11 0 2 7 Family ownership of accounts None 10 0 48 12 0 7 7 0 10 0 1 15 One or more 90 17 36 7 15 3 7 1 4 1 7 2 All respondents 100 17 37 8 13 3 7 1 5 1 6 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 189 12. Typical behavior of individuals, classified by selected characteristics, in obtaining, holding, and spending cash, 1986 PPrrooppoorr-- Dollars on Monthly cash Average Days between ttiioonn ooff hand before Dollars acquired expenditure balance IInnddiivviidduuaall cchhaarraacctteerriissttiicc rr dd ee (( ss pp ee pp ee nn oo rr tt -- ss nn -- acquisitions acquisition (dollars)1 (dollars)1 MM oo tt oo uu vv nn rr ee tt nn rr hh -- 22 ll yy cceenntt)) Mean Median Mean Median Mean Median Mean Median Mean Median Family income (dollars) Less than 10,000 17 30 15 23 5 194 100 331 186 120 62 2.8 10,000-19,999 21 11 7 29 7 139 70 440 270 98 51 4.5 20,000-29,999 17 23 7 44 10 152 100 433 300 120 70 3.6 30,000-49,999 31 10 7 32 10 140 65 514 300 102 45 5.0 50,000 or more 14 11 7 60 15 130 80 473 326 126 60 3.8 Age (years) Less than 35 36 15 7 16 5 128 50 473 261 80 40 5.9 35-44 21 10 7 32 7 127 65 486 261 % 44 5.1 45-54 11 12 7 47 10 161 100 484 400 128 65 3.8 55-64 18 19 8 68 10 173 100 221 271 154 60 1.4 65 or more 16 25 15 42 15 196 100 346 276 141 88 2.5 Sex Male 43 12 7 51 13 184 100 571 350 143 70 4.0 Female 57 19 7 24 5 125 60 355 217 87 43 4.1 Race or national origin Caucasian 82 13 7 35 10 144 86 437 261 107 55 4.1 Nonwhite or Hispanic 18 28 7 41 7 177 100 494 326 129 69 3.8 Family ownership of accounts None 10 39 15 36 10 265 200 673 521 169 150 4.0 One or more 90 14 7 35 10 139 75 430 261 104 51 4.1 All respondents 1986 100 16 7 36 10 150 93 448 274 111 56 4.1 19843 100 12 7 36 18 142 90 458 298 107 63 4.2 1. See appendix for definition. 3. Dollar amounts for 1984 are computed in 1986 dollars. 2. Defined as the ratio of mean monthly cash expenditure divided by the mean average balance. 1986 the average amount they acquired was an The two types of survey information are amestimated $150, compared with $142 in 1984. biguous concerning how individuals' monthly These patterns are depicted in chart 4, which cash expenditure on goods and services changed compares the 1986 and 1984 time profiles of the between 1984 and 1986. The estimates in table 12 average cash inventory behavior of individuals. suggest that cash expenditure per individual de- The net consequence of these changes was that creased slightly, but the estimates in table 13 individuals appeared to hold a larger average real suggest the opposite. amount of cash in 1986 than in 1984. The esti- The survey evidence does suggest, however, mates of the average cash holdings per individual showed an increase from $107 in 1984 to $111 in 4. Average patterns of cash inventory for individuals 1986. These findings may reflect a response to the decline in interest rates over the period, which reduced the interest income forgone by holding cash. The survey data about the most recent occasion on which cash was acquired generally confirm these patterns (see table 13). Estimates based on these data, however, suggest a larger increase in the amount of cash acquired and in the average cash holdings (from $80 in 1984 to $104 in 1986). Days Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin • March 1987 13. Most recent behavior of individuals, classified by selected characteristics, in obtaining, holding, and spending cash, 1986 PPrrooppoorr-- Dollars on Monthly cash Average Days between ttiioonn ooff hand before Dollars acquired expenditure balance rreessppoonn-- acquisitions acquisition (dollars)1 (dollars)1 MMoonntthhllyy IInnddiivviidduuaall cchhaarraacctteerriissttiicc ddeennttss oo ttuu vv rr ee nn rr -- 22 ((ppeerr-cceenntt)) Mean Median Mean Median Mean Median Mean Median Mean Median Family income (dollars) Less than 10,000 17 26 14 62 8 332244 110000 332244 222255 115577 5577 22..11 10,000-19,999 21 12 8 54 10 135 75 425 257 66 39 6.4 20,000-29,999 17 17 8 61 15 181 100 498 304 115 57 4.3 30,000-49,999 31 11 7 51 13 168 75 546 339 87 43 6.2 50,000 or more 14 11 7 77 17 192 100 677 384 120 68 5.6 Age (years) Less than 35 36 14 7 41 1100 1% 50 443322 224444 9944 3388 44..66 35-44 21 10 7 57 10 138 60 551 304 82 38 6.7 45-54 11 13 8 53 10 172 100 482 306 103 58 4.7 55-64 18 16 10 110 15 209 118 549 406 131 53 4.2 65 or more 16 21 14 50 20 257 150 500 304 130 67 3.8 Sex Male 43 14 8 76 20 262 150 618 345 145 72 44..33 Female 57 15 8 46 10 142 50 399 250 74 37 5.4 Race or national origin Caucasian 82 13 8 53 10 175 100 494 330044 95 47 5.2 Nonwhite or Hispanic 18 21 9 84 13 278 100 489 304 145 67 3.4 Family ownership of accounts None 10 32 14 73 7 271 190 385 300 119 73 3.2 One or more 90 13 8 57 12 189 100 508 304 106 48 4.8 Where cash last obtained Bank 61 16 10 77 17 240 120 558 342 133 68 4.2 ATM 13 7 5 15 7 62 40 429 244 37 23 11.6 Employer or own business 7 9 7 45 12 208 220000 632 406 88 76 7.2 Store 10 17 8 25 7 171 48 343 200 83 33 4.1 Other family member or friend 10 17 7 56 5 96 30 275 174 54 20 5.1 All respondents 1986 100 15 8 59 12 194 100 493 304 104 51 4.7 19843 100 12 8 36 16 155 84 447 292 80 44 5.6 1. See appendix for definition. 3. Dollar amounts for 1984 are computed in 1986 dollars. 2. Defined as the ratio of mean monthly cash expenditure divided by the mean average balance. that the usage rate of cash declined between 1984 cash may reflect individuals' responses to the and 1986. The usage rate, or turnover, of cash is lowering of interest rates that occurred between a ratio defined as total spending out of cash 1984 and 1986. during some interval of time divided by average cash holdings during the same interval. Turnover The "Missing" Cash measures the efficiency of cash in making payments: a higher turnover implies that each dollar One of the most striking findings of the 1984 outstanding supports a larger volume of transac- survey was that, in the aggregate, adult U.S. tions. Economic reasoning suggests that turn- residents held only an estimated 11 to 12 percent over should rise when interest rates increase of the stock of currency and coin circulating (giving individuals an incentive to economize on outside banks at the time. This finding implies their cash holdings by keeping more of their that more than 88 percent of the U.S. currency money in interest-bearing accounts), and it stock outside the vaults of depository institutions should fall when interest rates decrease (lessen- was held—apart from some that may be lost and ing the incentive to economize on cash holding). unaccounted for—by other agents such as busi- Thus the decline in the estimated turnover of ness enterprises, persons in other countries, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 191 persons less than 18 years of age. Because chil- for legitimate purposes. This amount, however, dren or legitimate businesses are not likely to would be larger if the cash involved were used have held more cash in the aggregate than all less actively or smaller if some illegal transacadults, this finding suggests that a large percent- tions were paid for with means other than cash. age of the U.S. currency stock was held for Anecdotal evidence suggests that the amount purposes not directly related to measured do- of U.S. cash held abroad may be large, but no mestic activity. quantitative information with which to confirm This finding is confirmed by the evidence from or refute speculation about the amount is availthe 1986 survey. Given the size of the sampled able. The conjecture that most of the "missing" population at the time of the survey, the esti- cash is held abroad would be more appealing if mates of average cash holdings per individual in one could show that the proportion unaccounted tables 12 and 13 imply that adult U.S. residents for had changed over time, perhaps in response in the aggregate held about $20 billion in cash, to movements in exchange rates or secular which they used for transactions. This total changes in the international role of the U.S. amounted to about 11 percent of the stock of dollar. The survey estimates, however, suggest currency or coin in circulation outside banks, that the missing proportion did not change bewhich was $177.4 billion at the time of the tween 1984 and 1986 despite the sharp depreciasurvey. Thus, in 1986 as in 1984, a large percent- tion of the dollar against Japanese and European age of the U.S. currency stock was apparently currencies. held in unreported hoards, "underground" for Precisely identifying the holders of most of the illegitimate purposes, or offshore. stock of cash has not been possible. However, To assess the possibility that U.S. adults data collected in 1944 by the U.S. Department of hoarded significant amounts of cash that were Agriculture for the Federal Reserve Board sugnot used for transactions, the 1986 survey col- gest that, at that time, when the dollar was lected information about how much cash was emerging as the dominant international currency, held for purposes other than everyday expenses. U.S. family holdings of currency accounted for a In the aggregate, these holdings amounted to an proportion of circulating currency that was reestimated $3.3 billion. Assuming a statistical markably consistent with the 1984 and 1986 data. confidence interval of 95 percent, these cash While inconclusive, the evidence suggests that holdings combined with the cash individuals held the percentage of cash unaccounted for, although for transactions represented in total only about apparently large, may at least have been stable. 12 to 14 percent of the stock of currency and coin in circulation outside banks. However, because individuals who were hoarding large amounts of SUMMARY OF FINDINGS cash were probably less likely to respond to the survey questions, the survey estimate is pre- This article has presented some preliminary resumed to understate the actual amount of cash sults from a comparison of the two surveys of hoarded domestically. currency and transaction account usage. Be- A rough estimate of the amount of cash held tween 1984 and 1986, the use of consumer checkfor illegal transactions can be made by extrapo- ing accounts for saving increased, and their use lating estimates, published in Income Tax Com- for transactions decreased. These changes may pliance Research in 1983 by the Internal Reve- reflect consumers' responses to the decline in nue Service, of the amount of income derived open market rates and the narrowing of gaps from tax avoidance and other illegal activities. If between these rates and the rates paid on conone assumes that all of this income was paid in sumer checking deposits. Much of the growth in cash, and the cash involved turned over 4.7 times credit card charges during the two-year period each month (the same as estimated for the legiti- appears to be the result of greater use of credit mate holdings of individuals in table 12), the cards as a means of payment rather than as a amount of cash held for these transactions would source of debt financing. Individuals increased have amounted to about $9 billion, or less than their average holdings of cash, and the turnover one-half the total amount held by U.S. residents of cash declined as interest rates declined. Final- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin • March 1987 ly, the 1986 survey confirmed the 1984 finding transaction motives less important, determinants that, in the aggregate, adult individuals held only of the way U.S. consumers managed their checkabout one-eighth the total U.S. currency stock. ing account and cash balances as a result of the Overall, these findings suggest that portfolio regulatory and macroeconomic changes that occonsiderations became more important, and curred between 1984 and 1986. APPENDIX Because the sample is restricted to families with telephones, single individuals and poor individ- The appendix briefly discusses the survey design uals are probably sampled less frequently than and preparation of the data used in this article. their proportion in the general population. To the Issues include the design and content of the extent that single households and other housesurvey, editing procedures employed to deal holds are equally likely to have telephones, an with problems of missing data, the construction individual in a single household is more likely to of sampling weights used to calculate the popula- be selected than any person in a larger housetion estimates, and details of some of the calcula- hold. Insofar as the behavior of groups underreptions underlying the reported figures. resented or excluded from the sample is similar to that of groups in the sample, one can estimate population characteristics with sampling weights Survey Design (see "Errors of Sampling, Reporting, and Nonresponse" below). The 1986 Survey of Currency and Transaction The questionnaire for the 1986 Survey of Cur- Account Usage was conducted as part of the rency and Transaction Accounts Usage was simmonthly Survey of Consumer Attitudes of the ilar to that used for the 1984 survey. In addition Survey Research Center of the University of to standard demographic information, the survey Michigan.1 In the monthly survey, interviews are solicited three kinds of information essential for conducted by telephone, with telephone num- understanding the use of means of payment. bers chosen from a cluster sample of residential First, it requested detailed information about the numbers in the coterminous United States.2 The use of checking accounts and other family savsample is chosen to be broadly representative of ings or money market accounts during the month the four major regions—Northeast, North Cen- preceding the survey. The questions asked about tral, South, and West—in proportion to their (1) the number and size of deposits; (2) the populations. At each telephone number drawn, a number and size of withdrawals; (3) the number family is chosen and a random adult from that and size of cash deposits and withdrawals; (4) the family is selected as the respondent.3 As noted in dollar amount of transfers between accounts; (5) the text, the frames of reference for the questions the dollar amount of investments and large in the 1986 survey are both the individual and the expenditures from accounts; and (6) service family of the individual. charges, interest payments, and other account The sampling procedure is likely to produce a characteristics. Respondents were encouraged to nonrandom selection of families and individuals. consult available records. 1. See Richard Curtin, "Indicators of Consumer Behavior: Journal of the American Statistical Association, vol. 44 The University of Michigan Surveys of Consumers," Public (September 1949), pp. 380-87. Opinion Quarterly, vol. 46 (Fall 1982), pp. 340-52. In the monthly survey, a family is an individual living alone 2. For a description of the method on which this sampling or any number of persons related by blood or marriage who plan is based, see Joseph Wacksberg, "Sampling Methods for are living together. The head of the family is the individual Random Digit Dialing," Journal of the American Statistical living alone, the male of a married couple when only one Association, vol. 73 (March 1978), pp. 40-41. married couple live together, or the adult in a family with 3. For a description of the method of selecting the respon- more than one person and only one adult. In all other cases, dent from a given family, see Leslie Kish, "A Procedure for the head is the adult closest to 45 years of age. Adults are Objective Respondent Selection within the Household," persons of 18 years or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 193 Second, the survey focused on families' use of havior. Although typical behavior should be less money orders, credit cards, and electronic bank- variable than most-recent behavior and therefore ing services. Information was requested for the more resistant to distortion by outliers, it may month preceding the survey on (1) the number not reflect rare, or even less-common, behavior and amount of money orders used; (2) the num- sufficiently well. Because estimates based on ber and types of credit cards held by the family; each of these types of responses could be flawed, (3) the charges made using those cards and it is not clear which is to be preferred. balances unpaid after the previous payment; (4) The Survey Research Center conducted interownership and use of automated teller machine views for the 1986 survey primarily in June just cards and the use of cash networks; and (5) the as it did for the 1984 survey. That month was incidence of automatic or electronic payments selected so that comparisons between the two and deposits. surveys would be uncomplicated by seasonal Third, the survey inquired about individuals' effects. The 1986 survey had a response rate of use of cash (currency and coin). For the most 75 percent, with a total of 658 interviews obrecent time they obtained cash, respondents tained, whereas the 1984 survey, which had a were asked (1) where they obtained it; (2) how response rate of 78 percent, used 1,885 interthey obtained it; (3) their cash reserves just views. The version of the 1984 data used here has before they obtained it; (4) how much they been converted to 1986 dollars using the Conobtained; (5) how much of it they spent on sumer Price Index (5.5 percent change) and investments or money orders or gave to family reweighted with revised 1984 population data. members; and (6) when they expected to obtain cash again. The survey also sought information about respondents' typical patterns of cash ac- Errors of Sampling, Reporting, and quisition: how frequently they typically obtained Nonresponse cash, how much they usually had on hand just before obtaining more, and how much cash they The results of any survey, and the estimates of typically obtained. Although many of the ques- population characteristics derived from it, are tions regarding cash were identical to those used subject to errors based on the degree to which in the 1984 survey, some questions were re- the sample differs from the general population, to phrased and others were added. The 1986 survey errors arising during the interview, and to errors solicited more information on where and how derived from incomplete responses. individuals last obtained cash. It also asked Sampling error is a measure of the random about stocks of cash that families kept on hand deviation of the survey findings resulting from for purposes other than everyday expenses. the selection of a particular sample. The first four Estimates of average balances and monthly columns of table A.l contain the approximate expenditures based on respondents' typical and sampling errors associated with various sample most-recent behavior in acquiring cash represent sizes and reported percentages from a survey, different statistical concepts. In principle, the assuming a confidence level of 95 percent. The previous time a respondent acquired cash repre- odds are 95 in 100 that the estimated percentages sents a random selection from the range of reported lie within a range equal to the reported behavior possible for that person. If respondents percentages plus or minus the sampling error. are randomly selected, estimates based on most- For estimates based on the entire 1986 survey recent behavior are proper estimates of popula- population, the relevant sample size is about 600 tion statistics, at least in large samples. Samples respondents. Similar confidence intervals are the size of the 1986 survey, however, may not be given in the last two columns for percentage large enough to give proper representation of the changes between the 1984 and 1986 surveys distribution of rare behavior in the population using the entire populations of both surveys. The and thus may be unduly sensitive to outliers. figures given are appropriate for determining whether the difference in percentages estimated The reported typical behavior is likely to repin the 1984 and 1986 surveys are different at a 95 resent most common, rather than average, be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletin • March 1987 A. 1 Approximate 95 percent sampling errors of Like almost every household survey, the 1986 survey estimates of percentages in single survey contained observations with missing valsurveys and of changes in percentages between ues for some of the variables. Of the 658 observathe two surveys, by size of sample1 tions, 431 had at least one missing item. However, 80 percent of the cases had fewer than 10 Sampling error for 1986 SSSaaammmpppllliiinnnggg survey eeerrrrrrooorrr fffooorrr missing items. Of key responses, 9 percent of the ccchhhaaannngggeeesss SSSuuurrrvvveeeyyy rrreeesssuuullltttsss bbbeeetttwwweeeeeennn observations were missing the amount of cash (((pppeeerrrccceeennnttt))) Size of sample 111999888444 aaannnddd last obtained, 11 percent were missing the cur- 111999888666 100 300 500 600 sssuuurrrvvveeeyyysss222 rent checking account balance, and 23 percent failed to answer the question about cash reserves 50 10 6 4 4 5 30 9 5 4 4 4 held for emergencies or other purposes.5 20 8 5 4 3 4 10 6 3 3 2 3 Because the units of observation for the cash 5 4 3 2 2 2 1 2 1 11 1 and account questions were the individual and the family respectively, cases with insufficient 1. 1.96 standard errors. data were eliminated from the analysis separate- 2. For estimates based on the full samples in each survey. ly for these two sections. Rules requiring that a minimum of approximately 30 percent of a core percent significance level. For example, an esti- of questions be answered completely were used to mated change of 5 percentage points from 1984 to eliminate 42 cases from the analysis of individual 1986 has a 95 percent confidence interval of currency behavior and 61 cases from the analysis approximately 3 to 7 percentage points.4 of transaction accounts and other family varia- Reporting errors may arise by accident, on bles. Of these, 36 cases were eliminated from purpose, or from a lack of information. This both analyses. In general, the cases eliminated problem may have arisen in the 1986 survey from analysis were more likely to be poorer and particularly for questions about family transac- nonwhite or Hispanic. As might be expected, tion accounts when the respondent was someone cases eliminated from the account analysis also other than the head or spouse of the head (ap- tended to be cases in which the respondent was proximately 10 percent of the respondents were someone other than the head or the spouse of the of this type). The data used for this article have head. For the cases retained, the data were been edited to eliminate, to the extent feasible, edited, and all missing values were imputed for inconsistencies arising from such errors. individual or family questions as appropriate. Nonresponse errors may arise because a fam- Estimates of missing values were made with ily selected for participation in the survey could statistical procedures that used observed infornot be interviewed. If nonresponse arises ran- mation in a way that respected accounting identidomly in the sample population, no bias should ties and preserved the randomness of the original be induced in the estimates of population statis- sample data.6 tics. Unfortunately, in this survey one cannot make such a judgment. One can, however, make partial correction for some such errors by Sampling Weights observing how the population interviewed differs from the total population in the distribution of One means of making formal correction for devicertain characteristics. The cause of this devi- ations of the final sample population from the ation is a combination of sampling and nonre- population relevant for analysis is to use samsponse errors. To the degree that these deviations are the result of systematic tendencies in 5. These percentages were calculated on the relevant the population, sampling weights can compen- population bases. All respondents should have reported the sate for biases in sampling and nonresponse. amount of currency obtained. Only 584 respondents, however, either answered that they had a checking account or refused to answer that question, and only 188 respondents answered that they held or did not hold extra cash reserves. 4. More detailed tables are given in Alan Stuart, "Stan- 6. See Graham Kalton, Compensating for Missing Data dard Errors for Percentages," Applied Statistics, vol. 12 (Survey Research Center, University of Michigan, 1983), for (June 1963), pp. 87-101. a discussion of the benefits of imputation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in the Use of Transaction Accounts and Cash from 1984 to 1986 195 pling weights in the calculation of statistics.7 In A.2 Distribution of individuals in weighted and the 1986 survey, two population universes of unweighted samples, by various characteristics, 1986 U.S. residents are of interest: noninstitutionalized families and noninstitutionalized individuals Unweighted Weighted aged 18 years or more. So that appropriate Individual characteristic sample sample sampling weights could be computed, the survey Family Income (dollars) sample (adjusted for observations that were Less than 10,000 14 17 10,000-19,999 19 21 dropped because of missing data) was poststrati- 20,000-29,999 18 17 fied by marital status, sex, age, race, and income 30,000-49,999 33 31 50,000 or more 16 14 for individual respondents and for their families. Age (years) Corresponding population frequencies were esti- Less than 35 42 36 mated from the 1983 Survey of Consumer Fi- 35-44 23 21 45-54 12 11 nances, which was adjusted to reflect population 55-64 12 18 totals for June 1986.8 For each cell, individual 65 or more 12 16 sampling weights were given by the ratio of the Sex 47 43 respective universe and sample cell frequencies.9 53 57 All statistics reported in the text and tables of Race or ethnicity this article were calculated using the individual 89 82 Nonwhite or Hispanic 12 18 or the family sampling weights. Table A.2 com- Family ownership of accounts pares the weighted and unweighted distribution 10 10 One or more 91 90 of selected individual characteristics in the final sample. The relationship of the distribution of family characteristics is similar. ditures. Payments by check (including automatic payments and bank checks) were calculated by Construction of Selected Estimates subtracting cash withdrawals, account transfers, and investment purchases from total withdrawals The expenditure shares reported in charts 1 and 2 from each type of account. Two measures of were calculated using the data supplied by re- total withdrawals were available for this calculaspondents to estimate the number and dollar tion. Respondents were asked directly the value of family payments made during the previ- amount of their total withdrawals. Also, withous month using credit cards, main and other drawals could be calculated indirectly as the checking accounts, savings and money market difference between the account balance reported accounts, and money orders. Because the figures for the previous month plus deposits, net interobtained on family use of cash do not enable one est, and the current reported balance. The averto determine how much of that cash was spent on age of these two measures was used in determingoods and services, the cash figure used ing all account expenditures in the article. in calculating chart 1 is the implied population Most other statistics on account usage given in aggregate of individual net monthly cash expen- tables 1-4 were based on direct responses to survey questions. Account balance figures were calculated by averaging the current and previous 7. See D.G. Horwitz and D.J. Thompson, "A Generaliza- month's balances as reported by respondents. tion of Sampling without Replacement from a Finite Uni- Credit card, money order, and ATM statistics verse," Journal of the American Statistical Association, vol. are also based on direct responses given by 48 (December 1952), pp. 396-404. 8. See Robert B. Avery and Gregory E. Elliehausen, 1983 respondents. Survey of Consumer Finances (Board of Governors of the All variables reported on cash usage in this Federal Reserve System, forthcoming). article are based on measurements of individual, 9. Because this survey undersampled Hispanics and nonwhites relative to their proportion in the population, creating rather than family, behavior. Measures of indicells of sufficient size for this group for all other cross- viduals' average cash balances and monthly exclassifications was not possible. Generally, when cell sizes penditures made with cash were constructed were too small, the cell weight was allocated to the other racial-ethnic group nearest in terms of other characteristics. from information about the time intervals be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin • March 1987 tween acquisitions of cash, the amounts of cash yielded an estimate of currency expenditures on obtained, and the amounts of cash left before goods and services. In the second interval, these more was obtained. Individuals reporting typical calculations were based on the assumption that behavior were assumed to have spent the ac- currency holdings were run down to the amount quired cash uniformly over the normal interval that respondents typically had on hand when between cash acquisitions. These expenditures additional currency was acquired. When this were adjusted to a common monthly basis. Aver- latter assumption implied negative expenditure, age balances were calculated as the sum of what the level of cash holdings was assumed to be respondents typically had on hand before obtain- maintained at the level reported at the time of the ing more currency and one-half the amount they interview. Average balances were computed as a usually obtained. weighted average of the average balances of the Calculation of the corresponding variables two intervals where the weights were the lengths based on the reported most-recent behavior was of the intervals. An estimate of monthly net somewhat more complicated, though the basic expenditures was calculated as the sum of the calculation was closely related. The calculation two expenditures adjusted to a monthly basis. proceeded in two steps: the period between the This measure of cash expenditures is sensitive to interview and the time currency was most re- the presence of a few extreme outliers. As noted cently obtained (interval 1) was considered sepa- earlier, this calculation is based on a random rately from the period between the interview and drawing from respondents' range of behavior. the time individuals expected to obtain currency Apparently some respondents obtained an unagain (interval 2). For each interval, an average usually large amount of cash over a very short balance and an expenditure figure were calculat- interval. In an attempt to make an estimate of ed almost as they were for typical behavior. In cash expenditures that would be less sensitive to the first interval, any currency given to other the presence of outliers, the figures used in table family members or used to purchase money 13, in chart 1, and in the text are this final orders or financial investments was subtracted measure of net expenditure truncated at one and from the implied expenditures. This adjustment a half times monthly gross family income. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

197 Industrial Production Released for publication January 16 at an annual rate of 3LA percent. However, at 126.6 percent of the 1977 average, industrial Industrial production increased an estimated 0.5 production in December was only about 1 perpercent in December following an advance of 0.6 cent higher than it was a year earlier. percent in November and a rise of 0.3 percent in In market groups, output of total consumer October. Gains occurred in most sectors but goods rose 0.9 percent in December—following were especially strong in consumer goods, de- gains of 0.7 and 0.5 percent in November and fense equipment, and nondurable materials. In October respectively. Autos were assembled at the fourth quarter of 1986, industrial output rose an annual rate of 7.9 million units in December, Ratio scale, 1977 = 100 140 TOTAL INDEX 120 100 80 140 MANUFACTURING MATERIALS Durable — Nondurabley—/* — 120 Nondurable ^^ N^ s^s — 100 Durable \J Energy I II ! 80 _L 160 CONSUMER GOODS 140 INTERMEDIATE PRODUCTS Nondurable Business supplies 120 J 100 80 Construction supplies J I I 240 OIL AND GAS DRILLING FINAL PRODUCTS 200 160 Defense and space Business equipment 120 / 100 80 Consumer eoods 60 1980 1982 1984 1986 1980 1982 1986 All series are seasonally adjusted. Latest figures: December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin • March 1987 1977 = 100 Percentage change from preceding month PPeerrcceennttaaggee cchhaannggee,, Group 1986 1986 DDeecc.. 11998855 Nov. Dec. Aug. Sept. Oct. Nov. Dec. 1986 Major market groups Total industrial production 126.0 126.6 .1 -.1 .3 .6 .5 .9 Products, total 134.5 135.3 .4 -.4 .6 .4 .6 1.8 Final products 133.4 134.2 .4 -.3 .4 .5 .6 .7 Consumer goods 125.8 126.9 .0 -.7 .5 .7 .9 2.9 Durable 117.4 119.4 -.5 1.4 -.7 .6 1.7 3.6 Nondurable 128.9 129.7 .1 -1.4 .9 .7 .6 2.7 Business equipment.. 139.2 139.3 1.0 .0 -.1 .0 .1 -.5 Defense and space... 184.5 186.2 .8 .6 .9 .5 .9 4.3 Intermediate products.. 138.5 139.2 .4 -.6 1.0 .1 .5 5.4 Construction supplies 126.3 126.7 1.1 .4 .1 .2 .3 5.8 Materials 114.5 114.7 -.3 .3 -.1 1.0 .2 -.6 Major industry groups Manufacturing. 130.5 131.4 .2 .0 .3 .5 .6 2.4 Durable 128.7 129.6 .1 .5 .1 .4 .7 .7 Nondurable . 133.1 133.8 .4 -.6 .7 .6 .5 4.9 Mining 96.6 97.0 -.7 -.3 -.3 .7 .4 -9.7 Utilities 110.9 110.6 -1.2 .0 1.1 1.2 -.2 -3.7 NOTE. Indexes are seasonally adjusted. up from the 7.3 million rate of both October and for the year. Output of materials increased 0.2 November; output of trucks for consumer use percent in December as production of nonduraalso increased during the month. Consistent with ble materials—especially textiles, chemicals, and the strength in sales of new and existing homes paper—rose 0.8 percent; production of durable during 1986 as a whole, production of home materials edged down following a sharp gain in goods continued to rise strongly in December; November. output of clothing also increased for the third In industry groups, manufacturing output inmonth in a row. However, output of business creased an estimated 0.6 percent following a equipment continued to show little change and similarly strong gain in November. Although was still 0.5 percent lower than it was a year steel production was down after a large Novemearlier. Production of defense equipment posted ber increase, the output of most other durables another large increase in December and finished increased in December. Moreover, output of the year about 4 percent higher than it was a year nondurable goods industries—a strong sector earlier. The expansion in the production of con- over the past year—rose 0.5 percent in Decemstruction supplies continued during December ber. Mining output increased 0.4 percent, but but at a somewhat slower rate than the average production at utilities edged down. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

199 Statements to Congress Statement by Paul A. Volcker, Chairman, Board need to be protected by maintaining an appropriof Governors of the Federal Reserve System, ate legislative and regulatory framework. before the Committee on Banking, Housing, and As a practical matter, the controversy and Urban Affairs, U.S. Senate, January 21, 1987. complexity surrounding this area mean that a really comprehensive review of the legislative I welcome this opportunity to provide the views structure—the range of powers of banking and of the Federal Reserve Board on the legislative financial holding companies, the role of deposit issues before the committee. As was aptly ob- insurance, changes in the regulatory apparatus— served in the letter of invitation to appear at this surrounding this area must take some time. No hearing, these issues, for the most part, have doubt, it's too much to accomplish in one fell been thoroughly reviewed and debated over a swoop. However, there are areas in which action number of years and now cry out for legislative cannot wait, both because there are particularly action. pressing needs and because they will signal the I cannot emphasize strongly enough that a broad framework within which more thoroughstrong, stable, and competitive banking and fi- going reform will take place. It is in that context nancial system is an indispensable ingredient of a that I strongly welcome the plan to formulate healthy and growing economy. Plainly, inescap- quickly a limited bill on the basis of the present able forces of change—technological, economic, hearings (and those of recent years) and to seek and competitive—at work on an international committee markup and Senate action early in scale require appropriate and effective response this session. if the broader public interests at stake are to be The immediate issues fall in four general areas, served. and they all are ripe for action. The "emergen- But the simple fact is that today, in the ab- cy" need for measures to bolster the ability of sence of fresh congressional direction, that ob- the insuring agencies to deal with failed or failing jective is in jeopardy. Both thrift and bank regu- banks and thrift institutions was made convinclators need additional tools to deal with pressing ingly in the last Congress. The time has plainly problems. More generally, important principles arrived to clarify and expand certain securities that have long guided our financial system, and powers of bank holding companies, a matter that that seem to me integral to its lasting health and simply cannot be dealt with reasonably and ratiostability, are being undermined. Particular insti- nally without congressional action. There is tutions and segments of the financial industry are widespread interest in improving the process of responding to the shifting competitive pressures check collection in a manner that will speed the and their perceived self-interests by exploiting availability of funds to depositors in financial loopholes and inconsistencies in present law in institutions. And, it is evident that the longways that will ultimately threaten the integrity of standing national policy of maintaining a basic the whole. separation of commerce and banking and a basic The point is not, of course, that forces of unity between state and federal banking authorichange can or should be stifled. Rather, those ties is being eroded; that process needs to be forces should be channeled in a constructive halted before irretrievable damage is done. way. There are clearly areas in which market Action in all those directions seems to me competition should be freed and efficiency pro- entirely consistent with the desirable longer-run moted. At the same time, there are clearly areas evolution of the financial system, and therefore in which institutional stability and independence need not be delayed awaiting more comprehen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin • March 1987 sive legislation. To the contrary, failure to act ciently provided in other ways. Rather, you are can now only complicate, and likely thwart, presented with the question of deciding upon the further constructive reform. nature of the banking system you want to see evolve in this country. I believe we need, and can support, a strong THE BASIC SEPARATION banking system with a variety of units large and OF BANKING AND COMMERCE small, able to compete efficiently, and capable, if they wish, of participating through affiliates in a This committee has repeatedly considered the wide range of financial services to consumers so-called "nonbank bank" (and "nonthrift and businesses alike. At the same time, we want thrift") question over several years without reso- to protect against instability, excessive concenlution. In one sense, the issue is technical, in- trations of power, and undue conflicts of intervolving the increasing exploitation of what was est, while preserving an institutional framework considered at the time of enactment a narrow for the effective conduct of monetary policy. In loophole in the Bank Holding Company Act. seeking those goals, the separation of banking However, as commercial firms have increasingly and commerce has been a basic part of the moved to exploit that loophole in their individual American tradition for what seems to me sound interests, and as thrift institutions have assumed reasons. banking powers, the more basic issues at stake Handling other people's money, which is what have become apparent. banking is all about, connotes a fiduciary respon- Essentially, the nonbank bank has become a sibility—to invest those funds prudently while device for tearing down the separation of com- making loans available competitively, producmerce and banking by permitting a commercial tively, and impartially to all sectors of the econofirm to enter the traditional banking business my. To that end, banking systems in virtually all without abiding by the provisions of the Bank countries are regulated, and in one way or anoth- Holding Company Act. That process is accom- er the depositors are offered a degree of protecplished by establishing banks that refrain from tion by means of a public "safety net." All of making commercial loans, or by establishing that reflects a fundamental recognition—from banks that refrain from accepting demand depos- the writings of Adam Smith on down—that banks its, or potentially by establishing both types of play a particularly strategic role in the economy banking affiliates that, somewhat awkwardly, that requires some regulation and support. The would together provide the full range of banking interdependence between the fortunes of one services. institution and others and the dependence of all At the same time, some established commer- on maintenance of a basic confidence in the cial banks have sought to use the "nonbank" stability of the whole imply a special sensitivity device to expand interstate. However, the incen- to risk and the general interest that is no less tives to do so are being reduced by the rapid important today. liberalization of interstate banking restrictions by The Bank Holding Company Act itself rests on the states themselves, and that particular use of the philosophy that banking cannot be treated as the nonbank bank is not a matter of strong policy just another business, with its fortunes entirely concern to us. However, the potential of existing subject to the vagaries of the marketplace. It banks to split themselves into two nonbank permits banking organizations to engage in relatbanks as a means of avoiding the provisions of ed financial businesses. A degree of "separathe Bank Holding Company Act entirely, while tion" is required between affiliates and a bank still more theoretical than real, illustrates the within a holding company, both for prudential basic nature of the issue before you. and competitive reasons. However, there is also some surveillance of the whole, recognizing that Fundamentally at stake is not a few inhouse insulation cannot be complete. consumer banking offices of some retail chains or operational access of some companies to the No doubt, as I will urge later, the legitimate payments system, services that can be effi- boundaries of activities permitted by banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 201 organizations need to be reviewed and enlarged. have long had a sizable ownership stake in some But to extend the interrelationships to business industrial companies. Even now, that arrangeand commerce generally would be a change not ment is under strong attack within Germany of degree but of kind. We certainly do not want itself as anticompetitive and stifling to the develto undertake new regulation of nonfinancial busi- opment of equity and capital markets.1 Italian nesses or incorporate them within the public authorities, reacting to experience, are moving to safety net. But without that regulation, how restrict nonbank ownership of banks more forcwould we protect against new dangers of concen- ibly, arguing that "firms controlling banks . . . tration, conflict of interest, and instability? involved large segments of the banking system What is suggested by some is that strong walls together with savers in their crises" (that is, in can be built to insulate a regulated and super- crises of the controlling commercial firm).2 Our vised bank from its nonbanking and commercial Canadian neighbors, in proposing sweeping affiliates. As I just indicated, a certain "separate- changes in the organization of their financial ness" is already enforced within a bank holding system including a broader range of financial company. But the insulation is far from com- services for banking organizations, have indicatplete, and attempting to make it so would present ed a special sensitivity to forestalling any sizable very great practical difficulties. combinations of banking and commerce.3 And, Common ownership of businesses implies in fact, whatever the formalities of the law, there common direction—why else would they want to are few instances in industrialized countries of join together? In particular, the fortunes of one commercial firms owning important banking inunit rest on the performance of others, especially stitutions. in an area so sensitive to confidence as banking. That is, of course, the situation in the United All our experience with the Bank Holding States today. The nonbank bank phenomenon is Company Act points to the strong incentives of recent and, as yet, poorly developed. Excluding management to support all parts of the organiza- industrial banks, there are 79 nonbank banks tion when they come under pressure. That is insured by the Federal Deposit Insurance Corpounderstandable because it is demonstrable that ration (FDIC), not all of which are in operation. weakness or failure of one part of a holding Of those, 17 are owned by banks or thrift institucompany can rapidly spread to others. The legal tions, raising only the question of interstate doctrine of corporate separateness of affliates banking, which in any case is in a state of flux. can, and has been, challenged in the courts when Most of the remainder are affiliates of financial common direction and management are present. firms; while these are inconsistent with the spirit And, suppose we succeeded in building full and of the Bank Holding Company Act as now writcredible insulation between a bank and its affili- ten, they do not, except incidentally, violate the ates—no direct or indirect transactions among basic separation of banking and commerce. Only them, no common officers, no tandem opera- the remaining 13, with total assets of some $1.7 tions, no possibility of mutual support or greater billion, are affiliated directly or indirectly with capital leveraging as part of a banking organization—then, I would ask, what is the economic incentive for such combinations at all? Certainly, 1. See generally Academic Advisory Commission to the present restrictions on linkages between banks Ministry of Economics, Federal Republic of Germany, Poliand other parts of a holding company are often cies on the Enhancement of Competition, December 5-6, resisted by management. 1986 (Monopoly Commission of the Federal Republic of Germany, Main Report, 1980-81). We are asked to look to foreign experience 2. Statement by Governor Carlo A. Ciampi, Bank of Italy, with "universal" banking systems as justifying before the 6th Standing Committee (Finance and Treasury), Chamber of Deputies, Rome, November 28, 1986, "Inquiry greater integration of banking and commerce. into the Development of the Banking and Financial System But frankly, I don't find much comfort there. We and the Relevant Legislation," pp. 11-12. have never been admirers of the old Zaibatsu 3. Department of Finance, Canada, Communique, 86-210, system in Japan, which led to enormous concen- (remarks by The Honorable Thomas Hockin in the House of Commons on tabling the policy paper "New Directions for tration of finance and commerce. German banks Financial Institutions," December 18, 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Federal Reserve Bulletin • March 1987 firms primarily engaged in commerce. Half of tion, dividing chartering and supervisory authorthose assets involve only one firm. ity between the state and federal authorities. Many of those relationships were established While that approach is bound to give rise to with fair warning, after grandfather dates pro- certain tensions, in general it has operated conposed in earlier legislative proposals, and are not structively by providing a certain room for differyet integral to the successful operation of the ence and experimentation among the states, and parent. But that will change. The time has come, between the states and the federal government. it seems to us, for the Congress to set out the At the same time, it is evident that the safety and "rules of the game" clearly and specifically, stability of the banking system as a whole is a before a reasonable case can be made that, de national concern—a concern reflected specificalfacto, the issue is moot. ly in the existence of the Federal Reserve and the For that reason, we would welcome early Federal Deposit Insurance Corporation systems. legislation to redefine a bank along the general The dual system works well when that overriding lines of the bill that passed the Senate as early as interest is respected. 1984—essentially to include FDIC-insured banks Recently, there have been developments that and noninsured banks that take transaction ac- challenge that basic assumption. Some states, counts and make commercial loans. Existing zealous to attract jobs and revenues from others, institutions might be grandfathered so long as have moved to grant new powers to their banking their operations are not expanded or operated in or thrift institutions far beyond that allowed tandem with their affiliates. Taking a leaf from federally chartered institutions. South Dakota, in the Canadian proposals, control might be shifted doing so, adopted the unusual approach of perto public ownership (with full banking powers) as mitting certain of those powers to be exercised expansion takes place. Whether nonbanks effectively only outside the borders of South owned by financial firms should be permitted to Dakota itself. expand or become full service institutions should That form of potentially destructive interstate be governed by the range of powers open to bank competition—the exercise elsewhere of powers holding companies. deemed unsuitable for the state itself—should be Similar restrictions would be appropriate for eliminated. Moreover, it should be clear that new "thrift" institutions that, in fact, operate like powers, whether or not exercised within the commercial banks. But exception could be made chartering state, that clearly jeopardize the safefor savings and loan associations or savings ty and soundness of banks and thrift institutions, banks that, in fact, continue to operate primarily or violate the basic separation of commerce and as specialized mortgage lenders without their banking, with adverse consequences for the fedoperations integrated with those of affiliates. eral insurance funds and the financial system as a That would continue, in practical effect, the whole, can be curtailed or overridden by the existing position of a number of thrift institu- appropriate federal authorities. We believe claritions, some of which have long been owned by fication of existing authority and a fresh congrescommercial firms as independently operated bus- sional expression of intent along those lines inesses through the vehicle of a unitary thrift would be desirable, and we would be glad to holding company. Such an approach would inci- propose language with that effect. dentally provide a vehicle for commercial firms to purchase troubled thrift institutions so long as they chose to commit themselves largely to the SECURITIES POWERS residential mortgage market. Resolution of the nonbank bank issue and clarification of the legitimate role of states in banking THE SOUTH DAKOTA LOOPHOLE regulation do not dispose of the practical issue of resolving the proper scope of powers of bank For more than 100 years, the United States has holding companies in the general area of financial had a "dual" system of banking law and regula- activity. We have long urged that the Congress Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 203 recognize the competitive, technological, and be small relative to the whole. Moreover, only international forces at work in the banking and the largest bank holding companies will be able financial marketplace and expand the authorized to muster a sufficiently large asset base to make role for bank holding companies. the otherwise prohibited securities activity com- These issues are inevitably highly controver- mercially economic and attractive. sial for they affect the competitive environment That cannot be a sensible result from the of existing institutions. No doubt, a full redefini- standpoint of either public policy or private tion must await more comprehensive legislation. interests. The effect is both to artificially encour- But there are areas in which progress is clearly age the reduction of assets in the regulated and possible now, and where change is in any event protected banking system and to impose unnecunder way. The only question is whether that essary restraints on competition. Yet it is the change will be piecemeal and haphazard as it situation in which we find ourselves. And, we works its way through the intricacies of present cannot defer a decision on this matter much outdated law, with odd and anomalous results, or longer. We have scheduled public hearings for whether that change will be channeled along early February and a decision in April. more clearly constructive lines. But only the Congress can provide a really That is precisely the issue today with respect sensible approach consistent with safety and to the securities powers of banks and bank soundness of the banking system, effective comholding companies. The Glass-Steagall Act, petition, and the interests of borrowers and lendwritten more than a half century ago, has been ers alike. To that end, we strongly support the commonly interpreted as calling for the "di- suggestion of the chairman of this committee that vorce" of investment from commercial banking straightforward authority be provided, as part of (with the exception of U.S. government securi- an early legislative package, for affiliates of bank ties and the general obligations of state and local holding companies to underwrite private securigovernments). But it is also true that the literal ties backed by 1- to 4-family residential mortlanguage of the law, with respect to bank affili- gages, municipal revenue bonds, commercial paates, indicates vaguely that such affiliates may per, and mutual funds. Because these are active, not be "engaged principally" in prohibited secu- growing markets and potentially important rities activities. sources of revenue, action in this area would go some distance toward meeting the legitimate The Federal Reserve Board recently interpretconcerns of banking organizations that they caned that language to permit, with strict limitations not keep abreast of growing sectors of the finanon volume, sale of commercial paper by a comcial markets even when safety and soundness or mercial lending affiliate of a bank holding compaconflict of interest considerations are not persuany. We have under consideration applications to sive deterrents. permit underwriting of mortgage-backed securities and municipal revenue bonds as well as Opposition to these powers is almost entirely commercial paper in affiliates largely engaged in limited to investment houses now with the field trading government securities, which present ad- to themselves. We have long been convinced ditional legal and practical issues. that with appropriate prudential safeguards and We have long felt, as a matter of good public protections against self-dealing, these powers policy, that all these activities are appropriate for can be exercised consistent with the safety and bank holding companies without artificial limita- soundness of the banking system and the interest tions on the volume of operations. But the issue of the public at large in effective competition. before us is whether that result can be achieved, While urging action on these powers now, we legally and reasonably, under existing law. would also encourage the committee to consider One thing is evident. Existing law provides a other financial areas appropriate for bank holdstrong incentive for certain large banking organi- ing companies. I recognize that these areas— zations to transfer assets and activities out of the including insurance and real estate brokerage, bank itself into a nonbank affiliate so that affili- insurance underwriting, and corporate security ate's otherwise prohibited securities activity will underwriting—are more controversial and will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 Federal Reserve Bulletin • March 1987 take more time to resolve. They, together with liabilities fully insured, to undertake high risk other important issues (including simplification activities inappropriate for any depository instiof the procedures required by the Bank Holding tution. Company Act), can await more comprehensive I am aware of the strong efforts made by the legislation later in this year or next year. But to Federal Home Loan Bank Board in recent years that end, I hope the committee will not act to under the leadership of Chairman Gray to curtail foreclose further any of the existing opportuni- abuses, to sharply upgrade the size and effectiveties of bank holding companies to provide finan- ness of its supervisory effort, to work toward cial services. higher capital standards, and to regulate effec- I would particularly urge the committee to tively. I believe those approaches deserve your undertake hearings or other studies in the area of strong support. corporate underwriting—a process that we As part of more comprehensive legislation in would be pleased to support. Clearly the issues the future, means of obtaining more consistency in this area are more complicated because of the in accounting, supervisory, and capital standards greater potential for conflicts of interest. Howev- among depository institutions deserve your er, they cannot be evaded much longer. A very thoughtful attention. To my mind, special consubstantial amount of such activity is already sideration should be given to the role of thrift conducted by bank holding companies abroad, institutions that, in fact, want to remain largely and the increased securitization of financial as- concentrated in the traditional area of residential sets by banks and others requires fresh consider- mortgage lending. Meanwhile, I hope you act ation of how banks participate in that process. promptly on the FSLIC recapitalization propos- Moreover, the issue could well arise as a matter al. of interpreting the present provisions of Glass- Fortunately, constructive action by Texas, Steagall. Oklahoma, and a few other states in recent months to permit the acquisition of failed or EMERGENCY PROVISIONS failing banks by out-of-state institutions, or to liberalize interstate banking generally, has eased The need for additional liquidity for the Federal the difficult job of finding buyers for actually or Savings and Loan Insurance Corporation potentially insolvent banks. Welcome as those (FSLIC) is plainly urgent. I know that you have actions are, however, they do not address the in the past, and will again, be receiving detailed problems that could arise in certain states. Contestimony on the Treasury-FSLIC proposal for sequently, we continue to urge that you adopt recapitalization of the insurance fund by leverag- legislation along the lines proposed to you by all ing the existing surplus of the Federal Home the bank supervisory agencies last year, thus Loan Banks and providing for special assess- providing greater assurance that we can collecments on insured institutions. I know of no tively act, with dispatch and at minimum cost, to practical alternative at this time to that approach, deal with acute problems that might emerge.4 nor is the time available to delay action while As things now stand, with the lapse of the considering other possibilities that would require authorities provided earlier by the Garn-St Germore sweeping reorganization. Moreover, the proposed approach conceptually is correct in looking to the insured industry itself to provide 4. The federal regulators proposed legislation to accomplish the following: (1) reduce the threshold amount for the financial support needed now. interstate emergency acquisitions from $500 million to $250 At the same time, we share the views of many million; (2) permit interstate acquisition of banks in danger of closing (with or without FDIC assistance) as well as closed in the industry that self-help must be accompabanks; (3) allow for acquisition of a holding company and its nied by effective supervisory and regulatory dis- affiliated banks if the holding company has a bank or banks in cipline to forestall aggravation of the underlying danger of closing with total assets of $250 million or more and which represent at least 33 percent of its banking assets; and problem. Clearly, some thrift institutions have (4) permit the out-of-state acquiring bank holding company to not used their existing authorities wisely or well. expand in the three largest cities or metropolitan areas in the Perverse incentives have arisen, with deposit state of the acquired banking institution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 205 main Act, we are without any federal authority able risks to the depository institutions, with the to arrange interstate acquisitions in emergency potential result of curtailing the availability of situations. checking accounts to marginally profitable (or unprofitable) customers. Liberal schedules might FUNDS AVAILABILITY unduly ease pressures for more rapid availability. In any event, the nature and extent of the The final question raised by the chairman in problem varies locally. considering legislation for prompt congressional In these circumstances, the Board has felt action deals with check holding practices of primary emphasis should be placed on efforts to financial institutions. We believe such legislation alleviate the problem through disclosure and has two essential elements. First, there is a improvements to the check collection process strong and straightforward case that depository and by targeting progress toward speedier reinstitutions clearly disclose to customers their turns as in the bill before this committee last policies with respect to the availability of depos- year. However, we are aware that some states ited funds at the time an account is opened and have enacted mandatory schedules that appear when such policies are changed. Second, cer- to be operating reasonably effectively. We betain authorities to override individual state stat- lieve that mandatory schedules would be workutes are necessary if the process of collection able provided the Federal Reserve is given auand return of checks is to be speeded (or if thority to determine those schedules in the light truncation is to be introduced), thus reducing or of practical progress in speeding return item eliminating the risk to depository institutions of times. making funds available more promptly and uni- We strongly believe that such schedules be formly. established based on the times in which the great In recent years, considerable exploratory bulk of checks can, in fact, reasonably be expectwork and some pilot projects have been under- ed to be collected and returned to the depository taken seeking to speed the return of dishonored institution in which they were first deposited in checks to the institution of first deposit. Progress the event of dishonor. After a relatively short is, among other things, dependent upon an ability transition period, we believe that schedules of to enforce expedited procedures by banks not from two to six business days or even less are using the Federal Reserve for check clearance. feasible depending on where the check is drawn. Consequently, federal legislation is necessary. The Board also believes mandatory schedules Mandatory availability schedules imposed by should contain exceptions to permit depository law raise difficult problems. Given existing tech- institutions to place holds on deposits or acnology, very tight schedules would pose measur- counts presenting unusually high risks. • Statement by Wayne D. Angell, Member, Board we are eager to work with you and the committee of Governors of the Federal Reserve System, to devise a legislative remedy to the delayed before the Committee on Banking, Finance and availability problem. I am personally sympathet- Urban Affairs, U.S. House of Representatives, ic with the goals of H.R. 28; my family experi- January 27, 1987. enced some of the problems faced by many consumers when we moved from Kansas to I welcome this opportunity to provide the views Washington, D.C., last year. of the Federal Reserve Board on the issue of Legislation addressing the delayed availability delayed availability and specifically on H.R. 28, issue should contain two essential elements. the Expedited Funds Availability Act. We share First, additional regulatory authority is needed to your frustration with the check hold practices of make improvements in the check collection and some depository institutions and with the ineffi- return process, thus reducing or eliminating the ciencies of the return-item process. Therefore, risk to depository institutions of making funds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Federal Reserve Bulletin • March 1987 available more promptly. Second, there is a institution as much as several days. This initiastrong and straightforward case that depository tive would expedite returns at relatively little institutions should clearly disclose their policies cost to the industry but would be effective only if to consumers with respect to the availability of it were applicable to all checks regardless of how deposited funds when an account is opened and they are cleared. when such policies are changed. This initiative could also entail permitting in- H.R. 28 and legislation that passed the House stitutions to return checks directly to the institulast year also contain a third element—schedules tion of first deposit, bypassing intermediate enthat dictate the maximum holds that a depository dorsers. H.R. 28 would provide the Board with institution may place on the proceeds of depos- the authority to preempt the laws of the three its. The Board believes that mandatory sched- jurisdictions that currently prohibit this practice, ules raise difficult problems in minimizing risks thus making the use of direct returns feasible on to depository institutions and in maximizing con- a widespread scale. sumer benefits, and has felt that primary empha- A further initiative involves the automation of sis should be placed on improvements in the return items through the use of the same efficient disclosure and payment system. However, the mechanism used to collect checks. A recent test Board does believe that mandatory availability of this concept by the Federal Reserve and 75 schedules could be a workable component of the depository institutions proved quite promising, delayed availability legislation, although it be- reducing the time to return checks an average of lieves that greater flexibility is required than that more than one-third. However, the cost of this provided in H.R. 28. program falls on the institution that is returning I would like to spend a few minutes discussing the check, while the benefits of the expedited two of the elements of the proposed delayed return accrue to the institution of first deposit. availability legislation: (1) the Board's authority Therefore, its use is not likely to be widespread to regulate the payments system and (2) the without the Federal Reserve having the authority mandatory availability schedules. to create incentives for payer institutions to participate in the program. BOARD'S REGULATORY AUTHORITY These examples illustrate the steps that could be taken to accelerate the return of checks if The Federal Reserve strongly supports the regu- additional regulatory authority were granted to latory authority provided to the Board in H.R. the Board. 28. This authority is crucial to the implementation of needed improvements in the check collection and return-item mechanism. Today, the MANDATORY AVAILABILITY SCHEDULES Federal Reserve's regulatory authority generally applies only to those checks that it clears. While As I stated earlier, we believe that reasonable the System has devoted significant attention to mandatory availability schedules can be workimprovements in the return-item process, our able. Some states have enacted mandatory lack of regulatory authority has lessened our schedules that appear to be operating reasonably effectiveness to make significant progress in this well. arena. Unfortunately, in our view the schedules in If legislation is passed, the Board would pro- H.R. 28 are not workable. The schedule to be pose several initiatives to improve the return adopted after three years will encourage check process. One such initiative that the Board might fraud, including kiting. The increased risk of propose would be to require the payer institution losses as a result of potential fraud would probato return checks to the institution of first deposit bly lead some institutions to refuse to provide within a given time frame. This initiative would banking services to certain consumers. Finally, effectively prohibit the use of the mail for return legislation should not include detailed and rigid items. The mail is used for more than 11 percent availability schedules given the complex nature of returns, slowing the trip back to the depositing of the check collection system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 207 Allow me to illustrate these points. The man- we recognize that this type of activity can, and datory availability schedule for local checks that does, occur today and can occur with any manis required by H.R. 28 after three years is unreal- datory availability schedule, requiring funds istically short. Even after making improvements availability before the completion of the normal to the check collection system, the schedule collection and return cycle will tend to encourage would be shorter than the time it would take for this type of check fraud. This is not to say that most checks to be presented to the payer institu- mandatory schedules must accommodate the retion. This will encourage check fraud. Under the turn of all checks, but rather that the schedules mandated schedule, institutions would be re- should not be designed so that individuals can quired to make the funds available for local rely on obtaining availability before the check is checks at the opening of business on the next returned. business day after the check is deposited, al- One step that an institution could take to though in most cases the check would not be prevent losses of the nature that I described is to presented at the payer institution until later that be more selective in choosing the consumers day. If this schedule goes into effect, it would be with which it does business. Since H.R. 28 does relatively easy to perpetrate a check kite. not contain a general judgmental exception to the All an individual would have to do is to open schedules, it would preclude institutions from accounts at two local institutions. Both accounts protecting themselves against risk of loss at the would be maintained in a proper manner for at time of deposit by placing holds on checks when least 30 days to satisfy the new account excep- they believe in good faith that there is a potential tion in the bill. After that time, suppose the for fraud. In response, institutions may take individual writes a check against nonsufficient steps to reduce their risk up front in screening funds for $5,000 on his account in one institution prospective accountholders. There is already a and deposits it in his account at the other institu- significant segment of the population—12 pertion on Monday. cent of families according to a 1983 survey—that Under H.R. 28, the institution in which the does not have a banking relationship. The schedcheck was deposited would be required to make ules in H.R. 28 could result in institutions refusthe funds available to the individual at the open- ing to provide banking services to an even larger ing of business Tuesday, thus permitting the segment of the population. individual to withdraw the $5,000. However, the We believe that the structure of the schedules check would not be presented to the institution in H.R. 28 is too rigid. For example, the schedon which it is drawn until late Tuesday morning ules that would be in effect during the first three or in the afternoon. That institution would not years are longer in some cases than is necessary know if there were sufficient funds in the account and too short in other cases. We are also conto cover that check until that evening, at the cerned about the geographic categories conearliest, when it posts checks to its customers' tained in the bill—local and nonlocal. New York accounts. State employs three categories: local, state, and On Wednesday, the institution on which the out-of-state. Some of our staff believe that a check was drawn would return the check to the different division would work more effectively: other institution. Since that institution would be local clearinghouse items, items processed by unable to obtain payment from the individual, it one Federal Reserve office, and items processed would suffer a loss of $5,000. Other similar in two Federal Reserve offices. We believe that schemes involving dozens of institutions that the geographic divisions should be left open in would result in significant losses to the banking the legislation and decided by the Board. industry could be easily accomplished.1 While The check collection system is a very complex mechanism, and it is one that is constantly changing. We would expect changes to acccelerate in the future as steps are adopted to improve 1. The attachments to this statement are available on the return-item process and as new technologies request from Publications Services, Board of Governors of are introduced. Rigid schedules may not adethe Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Federal Reserve Bulletin • March 1987 quately reflect these developments and therefore compliance. The Board is also concerned that should not be included in the legislation. the requirement for establishing a Payment Sys- The serious problems that I just described tem Advisory Council may slow, rather than could be avoided. Instead of having a precise facilitate, improvements in payment systems. schedule in the legislation, the Board urges the The council would duplicate the responsibilities Congress to authorize the Federal Reserve to of several other groups, such as the Consumer establish the schedules. Within a relatively short Advisory Council, which are already in exisperiod of time after the bill is enacted, the tence. Finally, the "good faith" amendment, Federal Reserve would implement an interim which was in the bill passed by the House last schedule that would, in most cases, be no longer, session, is not in H.R. 28. This provision allowed and perhaps shorter, than the interim schedules depository institutions to use their judgment in in H.R. 28. Within two to three years a schedule deciding whether a check presents unusual risk that is shorter than the interim schedule could be and to except such checks from the mandatory implemented after improvements to the return- schedule. A similar provision is necessary for item process are made. depository institutions to control check fraud If the Congress believes that it is critical to losses. For this reason, we urge the Congress to include a schedule in the legislation, then we include a "good faith provision." would urge that the schedule include only the In summary, we believe that legislation that maximum number of days that the Federal Re- requires disclosure and that provides authority to serve would be permitted to have in its schedule, the Federal Reserve to improve the return-item leaving flexibility for the Board to establish process and establish mandatory availability proshorter schedules. We would suggest that the posals will be beneficial to consumers and ensure maximum number of days be no shorter than six that the costs to the banking industry are reasonbusiness days after the day of deposit. able. There are a number of other technical Finally, there are a number of other provisions amendments to H.R. 28 that we would also like of H.R. 28 that bear further consideration. For to propose. The Board staff will be glad to work example, we believe that the coverage of the with your staff to develop the most effective legislation should be limited to consumers. We legislation for accomplishing these goals. Again, are unaware of any widespread delayed availabil- I am pleased to be here today and would be glad ity problems in the business community, and to discuss the delayed availability issue in more including business accounts within the scope of detail if the members of the committee desire. • the bill would significantly increase the cost of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

209 Announcements NEW MEMBERS APPOINTED TO Kansas; Donald F. McCormick, Chairman of the THRIFT INSTITUTIONS ADVISORY COUNCIL Board of Howard Savings Bank, Livingston, New Jersey; Herschel Rosenthal, President of The Federal Reserve Board on January 30, 1987, Flagler Federal Savings & Loan Association, announced the names of six new members to its Miami, Florida; and Gary L. Sirmon, President Thrift Institutions Advisory Council (TIAC) to of First Federal Savings & Loan Association, replace those members whose terms have ex- Walla Walla, Washington. pired and designated a new President and Vice President of the Council for 1987. The council is an advisory group made up of 12 PRELIMINARY FIGURES AVAILABLE ON representatives from thrift institutions. The pan- INCOME OF FEDERAL RESERVE BANKS el was established by the Board in 1980 and includes savings and loan, savings bank, and Preliminary figures indicate that gross income of credit union representatives. The council meets the Federal Reserve Banks amounted to $17,465 at least four times each year with the Board of billion during 1986. Net income before divi- Governors to discuss developments relating to dends, additions to surplus, and payments to the thrift institutions, the housing industry, mortgage Treasury totaled $18,009 billion. This figure infinance, and certain regulatory issues. cluded additions to income resulting from revalu- Michael R. Wise, Chairman and Chief Execu- ation of assets denominated in foreign currentive Officer of Silverado Banking, Denver, Colo- cies. About $17.8 billion was paid to the U.S. rado, was designated President of the Council, Treasury during 1986. and Jamie J. Jackson, President of Common- Income of the Federal Reserve System is wealth Financial Group, Houston, Texas, was derived primarily from interest accrued on U.S. designated Vice President. government securities that the Federal Reserve The six new members, named for two-year has acquired through open market operations. terms that began January 1 are the following: Income from the provision of financial services Gerald M. Czarnecki, President and Chief Exec- amounted to $630 million. utive Officer of First Southern Federal Savings & Operating expenses of the 12 Reserve Banks Loan Association, Mobile, Alabama; Betty and branches totaled $1,156 billion, including Gregg, President and Chief Executive Officer of $105 million for earnings credits granted to de- Desert Schools Federal Credit Union, Phoenix, pository institutions. Assessments by the Board Arizona; Thomas A. Kinst, Chairman of Land of of Governors for Board expenditures totaled $97 Lincoln Savings & Loan, Hoffman Estates, Illi- million, and the cost of currency amounted to nois; Ray Martin, President and Chief Executive $181 million. Officer of Coast Savings & Loan Association, Net additions to income amounted to $1,978 Los Angeles, California; Janet M. Pavliska, billion. This resulted primarily from an increase President and Chief Executive Officer of Bank of $1.971 billion in the value of assets denominat- Five for Savings, Arlington, Massachusetts, and ed in foreign currencies related to revaluation of William G. Schuett, President and Chief Execu- these assets at market exchange rates. Statutory tive Officer of Security Savings & Loan Associa- dividends to member banks were $110 million; tion, Milwaukee, Wisconsin. additions to Reserve Bank surplus were $92 The other members of the Council are the million; and payments to the Treasury amounted following: John C. Dicus, President of Capitol to $17,807 billion. Federal Savings & Loan Association, Topeka, Under the policy established by the Board of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin • March 1987 Governors at the end of 1964, all net income after Citicorp, J.P. Morgan & Co. Incorporated, and the statutory dividend to member banks and the Bankers Trust New York Corporation to underamount necessary to equate surplus to paid-in write and deal in, to a limited extent through capital is transferred to the U.S. Treasury as wholly owned subsidiaries, commercial paper, interest on Federal Reserve notes. mortgage-backed securities, municipal revenue bonds, and consumer-related receivables. ISSUANCE OF REVISED LIST OF OTC STOCKS SUBJECT EXTENSION OF TEMPORARY TO MARGIN REGULATIONS SEASONAL ADJUSTMENT PROGRAM The Federal Reserve Board published on Janu- The Federal Reserve Board announced on January 23, 1987, a revised list of over-the-counter ary 28, 1987, that the temporary simplified sea- (OTC) stocks that are subject to its margin sonal credit program has been extended through regulations, effective February 10, 1987. 1987. This program is designed to make funds This List of Marginable OTC Stocks superavailable at the discount window to small and sedes the revised list that was effective on Nomidsized agricultural banks experiencing unusuvember 11, 1986. Changes that have been made ally strong loan demands. in the list, which now includes 2,988 OTC stocks, Under the temporary program, qualifying are as follows: 211 stocks have been included for banks may borrow at the discount window to the first time, 185 under national market system fund half of their loan growth in excess of 2 (NMS) designation; 25 stocks previously on the percent over a base level. The maximum loan list have been removed for substantially failing to under the program is limited to 5 percent of the meet the requirements for continued listing; 85 borrower's total deposits. stocks have been removed for reasons such as listing on a national securities exchange or involvement in an acquisition. PROPOSED ACTIONS The list includes all over-the-counter securities designated by the Board pursuant to its estab- The Federal Reserve Board has extended the lished criteria as well as all securities qualified comment period from February 9 to February 27, for trading in the NMS. This list includes all 1987, on some of its proposals issued on Decemsecurities qualified for trading in tier 1 of the ber 10 to reduce the risks on large-dollar pay- NMS through February 10 and those in tier 2 ment systems. The proposals concern the risks through January 20, 1987. Additional OTC secuassociated with book-entry securities transfers, rities may be designated as NMS securities in the the reduction of existing levels for net debit caps, interim between the Board's quarterly publicathe establishment of a "de minimis" cap categotions and will be immediately marginable. The ry, and the adoption of limits on interaffiliate next publication of the Board's list is scheduled Fed wire transfers. for April 1987. The comment period for the proposed changes Besides NMS-designated securities, the to the automated clearinghouse (ACH) proce- Board will continue to monitor the market actividures remains the same, March 16. ty of other OTC stocks to determine which The Board also sought comment on the constocks meet the requirements for inclusion and cept of charging a fee for all daylight overdrafts continued inclusion on the list. in accounts maintained with the Federal Reserve that are subject to the net debit cap. Comment is HEARING SET FOR BHC APPLICATIONS still requested by April 13. TO UNDERWRITE AND DEAL The Federal Reserve Board has also requested IN CERTAIN SECURITIES comment on the concept of pricing Fedwire daylight overdrafts. (See Docket No. R-0592, The Federal Reserve Board fixed February 3 as dated December 10, 1986.) Public comments the date for the hearing on the applications by must be received by April 13, 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 211 The Federal Reserve Board on January 28, SYSTEM MEMBERSHIP: 1987, requested comment on a proposed amend- ADMISSION OF STATE BANKS ment to Regulation Y implementing amendments to the Change in Bank Control Act required by The following banks were admitted to memberthe Anti-Drug Abuse Act of 1986. Comments ship in the Federal Reserve System during the should be received by the Board on this matter period January 1 through January 31, 1987: by March 6, 1987. California San Francisco.... First Indo-American Bank CHANGE IN BOARD STAFF Indiana Hartford City Pacesetter Bank The Board of Governors announced the promo- of Hartford City tion of Stephen R. Malphrus, Assistant Director Montana in the Office of the Executive Director for Infor- Billings ... First Trust Company of Montana mation Resources Management, to Associate Texas Director, effective February 2, 1987. Fort Worth Fort Worth State Bank Utah Salt Lake City Lockhart Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

213 Legal Developments AMENDMENT TO REGULATION AA $25,000 limitation on consumer credit transactions and accounts the exemption will automatically extend to those transactions. The Board of Governors is granting in part the request by the state of New York for an exemption from the This exemption does not apply to transactions in cosigner provision of the Board's Credit Practices which a federally chartered institution is a creditor. Rule, Subpart B of Regulation AA, Unfair or Deceptive Acts or Practices. Effective January 22, 1987, the Board grants, pursuant to Subpart B of 12 C.F.R. Part 227, an exemption ORDERS ISSUED UNDER BANK HOLDING as follows: COMPANY ACT, BANK MERGER ACT, BANK SERVICE CORPORATION ACT, AND FEDERAL Part 227—Unfair or Deceptive Acts or RESERVE ACT Practices Orders Issued Under Section 3 of the Bank 1. The authority citation for 12 C.F.R. Part 227 contin- Holding Company Act ues to read as follows: AmBank Holding Company of Colorado St. Paul, Minnesota Authority: § 18(f), FTC A, as amended by Pub.L. 93-637. Order Approving Formation of a Bank Holding Company 2. The exemption requested by the state of New York to Subpart B of Regulation AA, the Credit Practices AmBank Holding Company of Colorado, St. Paul, Rule, is granted in part, as follows: Minnesota, has applied for the Board's approval under section 3(a)(1) of the Bank Holding Company Act ("Act") (12 U.S.C. § 1842(a)(1)) to become a bank holding company by acquiring AmBank Holding Company ("AmBank"), Burns Bancorporation ("Burns") ORDER and FAB Bancorporation, Inc. ("FAB"), all of St. Paul, Minnesota (collectively "Companies"). Appli- The state of New York has applied for an exemption cant would indirectly acquire American National from the cosigner provision of the Board's Credit Bank, Scottsdale, Arizona ("ANB"), Burns National Practices Rule which became effective January 1, Bank of Durango, Durango, Colorado ("Burns 1986. Pursuant to section 227.16 of Regulation A A, the Bank"), and First American Bank, N.A., Colorado Board has determined that the relevant laws of this Springs, Colorado ("FABank"). state are substantially equivalent to the federal law and Notice of the application, affording opportunity for that the state administers and enforces its laws effec- interested persons to submit comments, has been tively. The Board hereby grants the exemption as given in accordance with section 3(b) of the Act. The follows: time for filing comments has expired, and the Board Effective January 22, 1987, consumer credit transactions has considered the application and all comments reand consumer credit accounts under $25,000 that are ceived in light of the factors set forth in section 3(c) of subject to New York General Obligations Law § 15-702 and New York General Business Law § 349 are exempt the Act (12 U.S.C. § 1842(c)). from the cosigner provision of the Board's Credit Prac- Applicant is a non-operating corporation with no tices Rule, 12 C.F.R. § 227.14. Consumer credit transac- subsidiaries formed for the purpose of becoming a tions and accounts over $25,000 remain subject to the bank holding company by acquiring three bank holding Board's Credit Practices rule; however, compliance with the relevant provisions of the New York law will consti- companies affiliated by common ownership, and their tute compliance with the Board's rule. If the relevant subsidiary banks. Thus, this proposal represents a New York law is amended to remove or increase the restructuring of existing ownership interests. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 Federal Reserve Bulletin • March 1987 Section 3(d) of the Act (12 U.S.C. § 1842(d)), the be comparatively limited in scope, have been correct- Douglas Amendment, prohibits the Board from ap- ed and subsequent examinations of the two banks did proving an application by a bank holding company to not reveal any additional violations. The sufficiency of acquire control of any bank located outside of the the compliance procedures adopted to address holding company's home state, unless such acquisition CFTRA violations of Companies' subsidiary banks is "specifically authorized by the statute laws of the has been reviewed by examiners from the Office of the state in which such bank is located, by language to that Comptroller of the Currency. The Board also has effect and not merely by implication." Applicant's consulted with appropriate enforcement agencies, and home state for purposes of section 3(d) of the Act is has considered the banks' past record of compliance Colorado since the total deposits of Applicant's two with the law. For the foregoing reasons, and based proposed Colorado subsidiary banks will exceed those upon a review of all the facts of record, the Board finds of its proposed Arizona subsidiary bank. The statute the managerial resources of Applicant, Companies and laws of Arizona authorize, with the approval of the Companies' subsidiary banks to be consistent with Arizona Superintendent of Banks, an out-of-state bank approval. holding company, including a Colorado bank holding In evaluating this application the Board has also company such as Applicant, to acquire an Arizona considered the financial resources and future prosbank, such as ANB, that had applied to operate in pects of Applicant, Companies, Companies' subsid- Arizona before May 31, 1984.1 The Arizona Superin- iary banks and the chain of affiliated banks controlled tendent of Banks has approved the acquisition of by Applicant's principal. The Board has emphasized AmBank by Applicant. Accordingly, approval of Ap- that capital adequacy is an especially important factor plicant's proposal to acquire a bank in Arizona is not in the analysis of bank holding company proposals and barred by the Douglas Amendment. that under its Guidelines5 it will take into consider- Burns and FAB are bank holding companies located ation both the stated primary capital ratio and the in Colorado, controlling total deposits of $43.9 million primary capital ratio after deducting intangibles. In its and $35 million respectively and each holds less than assessment of Applicant's capital adequacy and the 0.25 percent of the total deposits in commercial bank- capital adequacy of the chain of banks affiliated ing organizations in the state.2 AmBank is a bank through ownership by Applicant's principal, the Board holding company located in Arizona, controlling de- has relied on the record of improvement in the chain's posits of $21.5 million, representing 0.1 percent of the capital ratios and particularly in the improvement in total deposits in commercial banking organizations in the ratios after deducting intangibles. Moreover, Apthe state.3 Consummation of this proposal would not plicant has submitted a plan that would cause the have a significant effect upon the concentration of tangible capital ratio of Applicant and the chain of banking resources in either Colorado or Arizona. affiliated banks to reach 5.5 percent prior to year end. ANB, Burns Bank and FABank operate in different Based upon these facts and the commitments of Applibanking markets. Principals of Applicant are not affili- cant, the Board concludes that the financial resources ated with any other depository organization in any of and future prospects of Applicant, Companies, their those markets. This proposal would not result in any respective banks and affiliated banks are consistent adverse effects upon competition in any relevant mar- with approval. Considerations relating to the conveket. Accordingly, the Board concludes that competi- nience and needs of the communities to be served also tive considerations under the Act are consistent with are consistent with approval of this application. approval. Based on the foregoing and other facts of record, the In its evaluation of Applicant's managerial re- Board has determined that the application should be, sources, the Board has considered certain violations and hereby is, approved. The transactions shall not be by ANB and Burns Bank of the Currency and Foreign consummated before the thirtieth calendar day follow- Transactions Reporting Act ("CFTRA") and the regu- ing the effective date of this Order or later than three lations thereunder.4 The violations, which appear to months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Kansas City, acting pursuant to delegated authority. 1. Arizona Revised Statutes §§ 6-322 and 6-323 (effective October 1, 1986). 2. Colorado banking data are as of December 31, 1985. 3. Arizona banking data are as of March 31, 1986. 4. 31 U.S.C. § 5311, et seq.\31 C.F.R. § 103. 5. Capital Adequacy Guidelines, 12 C.F.R. Part 225, Appendix A. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 215 By order of the Board of Governors, effective prospects of Applicant and Bank are consistent with January 27, 1987. approval of this application.4 Considerations relating to the convenience and needs of the community to be Voting for this action: Vice Chairman Johnson and Gover- served also are consistent with approval of the applicanors Seger, Angell, and Heller. Absent and not voting: tion. Chairman Volcker. Based upon the foregoing and other facts of record, the Board has determined that the application should JAMES MCAFEE be and hereby is approved. The transaction shall not [SEAL] Associate Secretary of the Board be consummated before the thirtieth calendar day following the effective date of this Order, or later than three months after the effective date of this Order, Maui Bancshares, Inc. unless such period is extended for good cause by the Tacoma, Washington Board or by the Federal Reserve Bank of San Francisco, acting pursuant to delegated authority. Order Approving Formation of a Bank Holding By order of the Board of Governors, effective Company January 27, 1987. Maui Bancshares, Inc., Tacoma, Washington, has Voting for this action: Vice Chairman Johnson and Goverapplied for the Board's approval under section 3(a)(1) nors Seger, Angell, and Heller. Absent and not voting: of the Bank Holding Company Act of 1956, as amend- Chairman Volcker. ed ("BHC Act") (12 U.S.C. § 1842(a)(1)), to become a bank holding company by acquiring 100 percent of JAMES MCAFEE [SEAL] Associate Secretary of the Board the voting shares of Bank of Maui, N.A., Kahului, Maui, Hawaii ("Bank"). Notice of the application, affording an opportunity Mountaineer Bankshares of West Virginia, Inc. for interested persons to submit comments, has been Martinsburg, West Virginia given in accordance with section 3(b) of the BHC Act. The time for filing comments has expired, and the Order Approving Acquisition of a Bank Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the BHC Act (12 U.S.C. § 1842(c)). Mountaineer Bankshares of West Virginia, Inc., Mar- Applicant, a nonoperating Washington corporation tinsburg, West Virginia, a bank holding company with no subsidiaries, was organized for the purpose of within the meaning of the Bank Holding Company Act becoming a bank holding company by acquiring Bank, (12 U.S.C. § 1841 et seq. ("BHC Act")), has applied which holds deposits of $9.5 million.1 Upon consum- for the Board's approval under section 3(a)(3) of the mation of this proposal, Applicant would acquire BHC Act (12 U.S.C. § 1842(a)(3)) to acquire Bank of Bank, which controls 0.12 percent of total deposits in Wadestown, Fairview, West Virginia ("Bank"). Hawaii. Bank operates in the Maui banking market,2 Notice of the application, affording an opportunity where it controls 1.8 percent of the deposits in com- for interested persons to submit comments, has been mercial banks in the market and ranks fifth out of ten given in accordance with section 3(b) of the BHC Act. banks in the market.3 The principals of Applicant are The time for filing comments has expired, and the not associated with any other banking organization in Board has considered the application and all comthis market. Consummation of the proposed acquisi- ments received in light of the factors set forth in tion would not result in any adverse effects upon section 3(c) of the BHC Act (12 U.S.C. § 1842(c)). competition or increase the concentration of banking resources in any relevant area. In light of certain commitments made by Applicant, the financial and managerial resources and future 4. The Board has considered comments in opposition to the application from Royal Holdings Limited, a Hawaii corporation that alleges that Bank's Board of Directors precluded the shareholders of Bank from having the opportunity to consider Royal's competing bid for Bank. Applicant has responded in detail to these comments. The comments in opposition to the application raise some arguments that are beyond the scope of the factors the Board is required to consider 1. Deposit data are as of March 31, 1986. under the BHC Act, and, when substantively considered, do not 2. The Maui banking market consists of the Island of Maui, Hawaii. reflect adversely on the managerial factors the Board must consider 3. Market data are as of June 30, 1985. and, thus, do not provide a basis for denial of the application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 Federal Reserve Bulletin • March 1987 Applicant, the fourth largest commercial banking provided by thrift institutions,6 the fact that several organization in the state of West Virginia, controls competitors—five commercial banks and two thrift three subsidiary banks with total deposits of $298.1 institutions—would remain in the market following million, representing 2.4 percent of total deposits in consummation, and other facts of record, the Board commercial banking organizations in the state.1 Bank concludes that consummation of the proposal is not is the 130th largest commercial banking organization in likely to substantially lessen competition in the Marion the state, controlling total deposits of $22.1 million, County banking market. representing 0.2 percent of total deposits in commer- The financial and managerial resources of Applicial banking organizations in the state. cant, its subsidiaries and Bank are consistent with Both Applicant and Bank operate in the Marion approval. Considerations relating to the convenience County banking market.2 Applicant is the third largest and needs of the community to be served are also of seven commercial banking organizations in the consistent with approval. market, controlling 24.2 percent of total deposits in Based upon the foregoing and other facts of record, commercial banks in the market.3 Bank is the fifth the Board has determined that the proposed acquisilargest commercial banking organization in the mar- tion is in the public interest and that the application ket, controlling 5 percent of the total deposits in should be, and hereby is, approved. The acquisition commercial banks in the market. Upon consummation shall not be consummated before the thirtieth calendar of this proposal, Application would become the largest day following the effective date of this Order, or later commercial banking organization in the market and than three months after the effective date of this would control 29.2 percent of total deposits in com- Order, unless the latter period is extended for good mercial banks in the market. The market's four-firm cause by the Board or the Federal Reserve Bank of concentration ratio would increase from 88 percent to Richmond, acting pursuant to delegated authority. 93.1 percent and the Herfindahl-Hirschman Index By order of the Board of Governors, effective ("HHI") would increase by 242 points to 2492.4 January 20, 1987. Although the proposed acquisition would eliminate some existing competition in the market, the Board Voting for this action: Chairman Volcker and Governors has concluded that the effect of this proposal on Johnson, Seger, Angell, and Heller. existing competition is mitigated by the extent of competition offered by thrift institutions in the market.5 Two thrift institutions operate in the market, JAMES MCAFEE controlling 18.4 percent of total deposits in the market. [SEAL] Associate Secretary of the Board These institutions compete with commercial banks in the market as providers of NOW accounts and consumer loans. Accordingly, in view of the competition Rainier Bancorporation Seattle, Washington Order Approving Acquisition of a State Savings Bank Rainier Bancorporation, Seattle, Washington, a bank 1. All banking data are as of June 30, 1986. Applicant has since received approval to acquire two additional banks. holding company within the meaning of the Bank 2. The Marion County banking market is defined as Marion Coun- Holding Company Act ("Act"), has applied for the ty, West Virginia, including the Fairmont RMA. 3. All market data are as of June 30, 1985. Board's approval under section 3(a)(3) of the Act, 4. Under the revised Department of Justice Merger Guidelines (49 12 U.S.C. § 1842(a)(3), to acquire all of the voting Federal Register 26,823 (June 29, 1984)), any market in which the shares of United Bank, A Savings Bank, Tacoma, post-merger HHI is over 1800 is considered highly concentrated, and the Department is likely to challenge a merger that increases the HHI by more than 50 points unless other factors indicate that the merger will not substantially lessen competition. The Department of Justice has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating an anticompetitive effect) unless the post-merger HHI is at least 1800 and 6. If 50 percent of the deposits held by thrift institutions in the the merger increases the HHI by at least 200 points. Marion County banking market were included in the calculation of 5. The Board has previously determined that thrift institutions have market concentration, the share of total deposits held by the four become, or at least have the potential to become, major competitors of largest organizations in the market would increase to 84.9 percent. banks. National City Corporation, 70 FEDERAL RESERVE BULLETIN Applicant's market share would increase by 4.5 percent to 26.2 743 (1984); NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225 percent and the HHI would increase by 196 points to 2093 upon (1984). consummation of the proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 217 Washington ("United Bank"), a state savings bank would continue to be the second largest banking whose deposits are insured by the Federal Deposit organization, with deposits of $3.5 billion, represent- Insurance Corporation. ing 25.2 percent of total market deposits. The Seattle Notice of the application, affording interested per- banking market is considered highly concentrated, sons an opportunity to submit comments, has been with a Herfindahl-Hirschman Index ("HHI") of 1880. given in accordance with section 3(b) of the Act. The Upon consummation, the HHI would increase by 132 time for filing comments has expired, and the Board points to 2012.5 has considered the application and all comments re- Although consummation of the proposal would elimceived in light of the factors set forth in section 3(c) of inate some existing competition between Applicant the Act. and United Bank in the Seattle banking market, nu- The Board has previously determined that a state merous other commercial banking organizations savings bank is a "bank" under section 2(c) of the Act would remain as competitors in the market after if it accepts demand deposits, engages in the business consummation. In addition, the presence of 35 thrift of making commercial loans, is not chartered by the institutions that control approximately 38.9 percent of Federal Home Loan Bank Board, and does not have the market's total deposits mitigates the anticompetiits deposits insured by the Federal Savings and Loan tive effects of the transaction.6 Thrift institutions al- Insurance Corporation ("FSLIC").1 United Bank ac- ready exert a considerable competitive influence in the cepts demand deposits and engages in the business of market as providers of NOW accounts and consumer making commercial loans; it is state-chartered and its loans. In addition, several of the thrift institutions deposits are not insured by the FSLIC. Accordingly, make commercial loans and provide an alternative for United Bank is a "bank" for purposes of the Act, and such services in the Seattle market. Based upon the this application has been considered in light of the above considerations, the Board concludes that conrequirements of section 3 of the Act pertaining to the summation of the proposal is not likely to substantially acquisition of banks. lessen competition in the Seattle banking market.7 Applicant's lead bank, Rainier National Bank, Seat- In the Bremerton banking market, Rainier is the tle, Washington ("Rainier Bank"), is the second larg- largest of 12 commercial banking organizations and est commercial banking organization in Washington, controls deposits of $106 million, which represents with deposits of $4.9 billion, representing 21.5 percent 23.1 percent of total deposits in the market.8 United of the total deposits in commercial banks in the state.2 Bank is the tenth largest banking organization, with United Bank, the ninth largest banking organization in deposits of $13 million, which is 2.8 percent of total Washington, controls total deposits of $442 million, or deposits in the market. Upon consummation, Appli- 1.9 percent of state deposits.3 Upon consummation, cant would continue to be the largest organization, Rainier would remain the second largest banking orga- with deposits of $119 million, representing 26 percent nization, with total deposits of $5.3 billion, or 23 percent of total deposits in the state. Consummation of the proposed transaction would not have a significant effect on the concentration of banking resources in 5. Under the revised Department of Justice Merger Guidelines (49 Washington. Federal Register 26,823 (June 29, 1984)), any market in which the post-merger HHI is over 1800 is considered highly concentrated, and Rainier competes with United Bank in four banking the Department is likely to challenge a merger that increases the HHI markets. In the Seattle banking market, Rainier is the by more than 50 points, unless other facts of record indicate that the second largest of 40 commercial banking organizations merger will not substantially lessen competition. The Department has informed the Board that a bank merger or acquisition generally will and controls deposits of $3 billion, which represents not be challenged (in the absence of other factors indicating anticom- 22.1 percent of total deposits in commercial banks in petitive effects) unless the post-merger HHI is at least 1800 and the the market.4 United Bank is the seventh largest bank- merger increases the HHI by at least 200 points. 6. The Board has previously indicated that thrift institutions have ing organization with deposits of $429 million, which become, or have the potential to become, major competitors of represents 3.1 percent of total deposits in commercial commercial banks. National City Corporation, 70 FEDERAL RESERVE banks in the market. Upon consummation, Applicant BULLETIN 743 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE BULLETIN 2215 (1984); GeneralBancshares Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983). 7. If 50 percent of deposits held by thrift institutions in the Seattle 1. See, e.g., Excel Bancorp, Inc., 72 FEDERAL RESERVE BULLETIN banking market were included in the calculation of market concentra- 731 (1986); First Fidelity Bancorporation, 72 FEDERAL RESERVE tion, Rainier would be the second largest of 75 depository organiza- BULLETIN 487 (1986). tions, with 16.5 percent of market deposits. Applicant would remain 2. All banking data are as of June 30, 1985. the 2nd largest depository institution, controlling 18.9 percent of the 3. United Bank is treated as a commercial bank in this analysis. market's deposits upon consummation. The HHI would increase by 4. The Seattle banking market is approximated by the Seattle- 76 points to 1149. Tacoma-Everett RMA, which consists of portions of King, Pierce, 8. The Bremerton banking market is approximated by the Bremer- Snohomish, Kitsap, and Island Counties in Washington. ton RMA, which consists of a portion of Kitsap County, Washington. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 Federal Reserve Bulletin • March 1987 of total market deposits. The Bremerton banking mar- rulemaking. Accordingly, subject to those commitket is considered moderately concentrated, with an ments, the Board has determined that United Bank's HHI of 1500. Upon consummation, the HHI would real estate investment and development activities do increase by 129 to 1629. not preclude approval of the application. In the Okanogan County banking market, Rainier is The financial and managerial resources and future the fourth largest of six commercial banking organiza- prospects of Applicant and United Bank are generally tions and controls deposits of $37 million, which satisfactory and consistent with approval of the applirepresents 21.4 percent of total deposits in the mar- cation. ket.9 United Bank is represented in the market with an In considering the convenience and needs of the office that had no deposits as of June 30, 1985. communities to be served, the Board has taken into Consequently, upon consummation, Rainier's market account the records under the Community Reinvestsize and rank would be unchanged. The banking ment Act ("CRA"), 12 U.S.C. §§ 2901-05, of Applimarket is considered highly concentrated with an HHI cant's subsidiary banks and of United Bank. The CRA of 2440. requires the federal bank supervisory agencies to In the Yakima County banking market, Rainier is encourage banks to help meet the credit needs of the the largest of nine commercial banking organizations local communities in which they are chartered, conand controls deposits of $189 million, which represents sistent with the banks' safe and sound operation. To 25.9 percent of total deposits in the market.10 United that end, the CRA requires the appropriate bank Bank is represented in the market with an office that supervisory agency to assess a bank's record in meethad deposits of less than $500,000 as of June 30, 1985. ing the credit needs of its entire community, including Upon consummation, Rainier's market size would be low- and moderate-income neighborhoods, and reessentially unchanged and Rainier would continue to quires the Board to take such records into account in rank as the largest organization. The banking market is evaluating a bank holding company's application to considered highly concentrated with an HHI of 1801. acquire a bank. Upon consummation, the HHI would be unchanged. In reviewing the CRA records of Rainier Bank and Based on the foregoing, the Board concludes that United Bank, the Board has considered the comments consummation of the proposed transaction is not likely of two protesting community organizations, South to substantially lessen competition in any relevant End Seattle Community Organization and South East market. Effective Development, both of Seattle, Washington United Bank engages in certain real estate invest- (together "Protestants"). Protestants have generally ment and development activities authorized by state raised concerns about whether those banks have been law. The Board has requested comment on proposed meeting the needs of Protestants' neighborhood, the regulations that would permit bank holding companies South End of Seattle. to engage in real estate investment activities within Protestants' comments on Rainier Bank's CRA recertain limits.11 Pending completion of the Board's cord are identical to those made by Protestants in rulemaking on those issues, the Board has, in a limited connection with a previous application. Rainier Bannumber of instances, permitted state savings banks to corporation, 73 FEDERAL RESERVE BULLETIN 55 continue to engage in real estate investment and (1987). The Board considered those comments and development activities, provided that the savings concluded that the CRA records of Applicant's subsidbanks limit the level and scope of those activities and iary banks were consistent with approval of the applimaintain adequate capital to support those activities.12 cation. Protestants have offered no new evidence or Applicant has made commitments that so limit United arguments regarding Rainier Bank's record. For the Bank's real estate activities, and has agreed to con- reasons set forth in the Board's Statement regarding form those activities to the results of the Board's that application, the Board concludes that the CRA records of Applicant's subsidiary banks are consistent with approval of this application. The Board has considered United Bank's CRA record in light of Protestants' comments. The Board concludes that United Bank's delineation of the rele- 9. The Okanogan County banking market is approximated by vant community is reasonable, does not arbitrarily Okanogan County, Washington. exclude low- and moderate-income or minority areas, 10. The Yakima County banking market is approximated by Yakima County, Washington. and complies with applicable regulations. 12 C.F.R. 11. 52 Federal Register 543 (1987). § 345.3. The Board further concludes that United 12. See, e.g., Excel Bancorp, Inc., 72 FEDERAL RESERVE BULLE- Bank's CRA record is consistent with approval of the TIN 731 (1986); First Fidelity Bancorp oration, 72 FEDERAL RESERVE BULLETIN 487 (1986). application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 219 Based upon all of the evidence of record, including Notice of the application, affording opportunity for Applicant's commitments and Protestants' comments, interested persons to submit comments and views, has the Board concludes that the CRA records of Appli- been duly published (51 Federal Register 39,587 cant's subsidiary banks, and convenience and needs (1986)). The time for filing comments has expired, and considerations generally, are consistent with approval the Board has considered the application and all of the application.13 comments received in light of the factors set forth in Based on the foregoing and other facts of record, the section 3(c) of the Act (12 U.S.C. § 1842(c)). Board has determined that the application should be, Applicant is the 122nd largest depository institution and hereby is, approved. The acquisition shall not be among commercial banks and thrift institutions in consummated before the thirtieth calendar day follow- Massachusetts, with approximately $132 million in ing the effective date of this Order, or later than three domestic deposits, representing 0.2 percent of the total months after the effective date of this Order, unless deposits in commercial banks and thrift institutions in that period is extended for good cause by the Federal Massachusetts.2 Chicopee is the 242nd largest deposi- Reserve Bank of San Francisco, pursuant to delegated tory institution among commercial banks and thrift authority, or by the Board. institutions in Massachusetts, with domestic deposits By order of the Board of Governors, effective of approximately $57 million, representing 0.1 percent January 27, 1987. of the total deposits in commercial banks and thrift institutions in Massachusetts. Voting for this action: Vice Chairman Johnson and Gover- Upon consummation of this proposal, Applicant nors Seger, Angell, and Heller. Absent and not voting: would become the 92nd largest depository institution Chairman Volcker. in Massachusetts with $189 million in domestic deposits, representing 0.3 percent of the total deposits in JAMES MCAFEE commercial banks and thrift institutions in the state. [SEAL] Associate Secretary of the Board Accordingly, consummation of this proposal would have no significant effect on the concentration of banking resources in Massachusetts. Both Applicant and Chicopee compete in the Westbank Corporation Springfield banking market.3 Applicant is the 17th West Springfield, Massachusetts largest depository institution among commercial banks and thrift institutions in the market, with 2.1 percent of Order Approving Acquisition of a Bank deposits in the market. Upon consummation of the proposal, Applicant would become the 14th largest Westbank Corporation, West Springfield, Massachu- depository institution in the market, with 2.7 percent setts, a bank holding company within the meaning of of deposits in the market. The Herfindahl-Hirschman the Bank Holding Company Act of 1956, as amended Index would increase from 750 to 753. Accordingly, (12 U.S.C. § 1841 et seq.) (the "Act"), has applied for consummation of the proposal would not result in any the prior approval of the Board under section 3 of the significant adverse effects on existing or potential Act (12 U.S.C. § 1842) to acquire Chicopee Co-opera- competition or increase the concentration of banking tive Bank, Chicopee, Massachusetts ("Chicopee"), a resources in any relevant area. state-chartered co-operative bank in stock form, the Chicopee engages through a subsidiary in certain deposits of which are insured by the Federal Deposit real estate investment and development activities au- Insurance Corporation.1 thorized pursuant to state law. The Board has request- 13. In considering Protestants' request for a public meeting, the Board finds that Protestants and Applicant have had ample opportuni- "bank" contained in section 2(c) of the Act. Chicopee accepts ty to present evidence and arguments in writing, and concludes that demand deposits and engages in the business of making commercial Protestants have not raised issues that would render a public meeting loans and its deposits are not insured by the FSLIC. Accordingly, appropriate. Accordingly, the Board has denied Protestants' request Chicopee is a "bank" for purposes of the Act. The application has for a public meeting. therefore been considered in light of the requirements of section 3 of the Act pertaining to the acquisition of banks. 2. Domestic deposit data are as of September 30, 1986. State data 1. The Board has previously determined that state-chartered stock are as of March 31, 1986. Market data are as of June 30, 1985. savings banks, that are not covered by the exemption created by the 3. The Springfield banking market is approximated by the Spring- Garn-St Germain Depository Institutions Act of 1982 for thrift institu- field Ranally Metropolitan Area ("RMA") minus the town of Brimtions insured by the Federal Savings and Loan Insurance Corporation field plus the towns of Blandford, Chester, Granville, Hardwick, ("FSLIC") and that accept demand deposits and engage in the Huntington, Montgomery, Otis, Tolland, Ware, Warren, and Worbusiness of making commercial loans are within the definition of thington. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 Federal Reserve Bulletin • March 1987 ed comment regarding the permissible scope and ex- Citicorp, New York, New York, a bank holding comtent of real estate investment and development pany within the meaning of the Bank Holding Compaactivities of holding company banks and their subsid- ny Act, 12 U.S.C. § 1841 et seq. ("Act"), has applied iaries.4 Pending completion of the Board's rulemaking pursuant to section 4(c)(8) of the Act (12 U.S.C. on these issues, the Board has, in a limited number of § 1843(c)(8)) and section 225.23(a)(3) of the Board's instances, permitted state-chartered savings banks to Regulation Y (12 C.F.R. § 225.23(a)(3)), to engage de continue to engage in real estate investment and novo through its wholly owned subsidiary, Citicorp development activities, provided that the savings Futures Corporation, New York, New York banks limit the level and scope of these activities and ("CFC"), in the provision of advisory services with maintain adequate capital to support the activities.5 respect to futures contracts on stock indexes and Applicant has provided commitments that so limit options on such futures contracts. CFC would offer Chicopee's real estate activities, and has committed to such advisory services with respect to the Standard conform these activities to the results of the Board's and Poor's 100 Stock Price Index futures contract rulemaking. Accordingly, subject to these commit- ("S&P 100"), the Standard and Poor's 500 Stock Price ments, the Board has determined that Chicopee's real Index futures contract ("S&P 500"), and options on estate investment and development activities do not the S&P 500, all of which are currently traded on the preclude approval of this application. Index and Option Division of the Chicago Mercantile Exchange. Applicant has previously received approval The financial and managerial resources of Applicant to execute and clear, through CFC, these futures and Bank are consistent with approval. Considerations contracts and options on futures contracts.1 Applicant relating to the convenience and needs of the communiproposes to offer these services to institutional custies to be served also are consistent with approval. tomers in the United States and abroad.2 Based on the foregoing and all the facts of record, including certain commitments made by Applicant, the Notice of the application, affording interested per- Board has determined that the application should be, sons an opportunity to submit comments on the relaand hereby is, approved. The transaction shall not be tion of the proposed activities to banking and on the consummated before the thirtieth calendar day follow- balance of public interest factors, has been duly pubing the effective date of this Order or later than three lished (50 Federal Register 27,684 (1985)). The time for months after the effective date of this Order, unless filing comments has expired, and the Board has consuch period is extended by the Board or by the Federal sidered the application and all comments received in Reserve Bank of Boston, acting pursuant to delegated light of the public interest factors set forth in section authority. 4(c)(8) of the Act. By order of the Board of Governors, effective Applicant, with total consolidated assets of $186.0 January 20, 1987. billion,3 is the largest banking organization in the United States. It presently operates eight banking Voting for this action: Chairman Volcker and Governors subsidiaries and engages, directly and through subsid- Johnson, Seger, Angell, and Heller. iaries, in a variety of nonbanking activities. CFC is a futures commission merchant ("FCM") registered JAMES MCAFEE with the Commodity Futures Trading Commission [SEAL] Associate Secretary of the Board Orders Issued Under Section 4 of the Bank Holding Company Act 1. Citicorp 73 FEDERAL RESERVE BULLETIN 157 (1987). Citicorp 2. Citicorp will provide the proposed advisory services only to "institutional customers," as defined in the Board's order approving New York, New York the application of National Westminster Bank PLC and NatWest Holdings, Inc., to engage in certain nonbanking activities. National Order Approving Application to Provide Advisory Westminster Bank PLC, 72 FEDERAL RESERVE BULLETIN 584 (1986) ("NatWest"). The definition of "institutional customer" in NatWest Services With Respect to Futures Contracts on Stock includes a person that is: a bank; an insurance company; a registered Indexes and Options on Such Futures Contracts investment company; a corporation, partnership, proprietorship, organization or institutional entity that regularly invests in the types of securities as to which investment advice is given; an employee benefit plan with assets exceeding $5,000,000; a natural person whose net worth exceeds $5,000,000; a broker-dealer or option trader registered under the Securities Exchange Act of 1934, or other securities 4. 52 Federal Register 543 (1987). professional; and an entity all of the equity owners of which are 5. See, e.g., First Fidelity Bancorporation, 72 FEDERAL RESERVE institutional customers. BULLETIN 487 (1986). 3. As of September 30, 1986. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 221 ("CFTC") that engages in the execution and clearance the Board has approved as closely related to banking of options contracts on bullion, foreign exchange, the combination of investment advice and securities government securities and money market instruments, brokerage. National Westminster Bank PLC, 72 FEDand options on futures contracts based on these com- ERAL RESERVE BULLETIN 584 (1986) ("NatWest"). In modities and instruments on major commodities ex- NatWest, the Board found that banks provided both changes for nonaffiliated persons.4 CFC also engages investment advisory and securities brokerage serin the provision of advisory services with respect to vices, and that the combination of the two activities, certain of these options, pursuant to previous approval previously determined to be closely related to bankby the Board.5 ing, would not result in an alteration of the functional The advisory services that Applicant proposes to nature and scope of the combined activities or their provide consist of general research and advice on close relationship to banking. Thus, the Board conmarket conditions and hedging strategies, client ac- cluded that the combination of the two activities was count information and reconciliation of trades, and closely related to banking. Similarly, the combination communication linkage between clients and exchange of futures advisory and execution and clearance serfloors in connection with CFC's futures commission vices as proposed by Applicant would not result in an merchant activities. These services would be offered alteration of the functional nature and scope of the two to customers either as part of an integrated package of component services or their close relationship to bankservices or for a separate fee. ing. The Board has previously approved as closely relat- The futures advisory services that Applicant proed to banking the execution and clearance of futures poses to provide are essentially identical to the advisocontracts on stock indexes and options thereon.6 The ry services previously approved by the Board by Board has not, however, considered a proposal to regulation and order with respect to other financially provide investment advisory services in connection related futures contracts. Thus, for the reasons speciwith the execution and clearance of such instruments. fied above and in the Board's previous determinations In order to approve this application, the Board is regarding FCM advisory services, the Board conrequired to determine whether the proposed activity is cludes that, in the manner proposed and subject to the so closely related to banking as to be a proper incident conditions set forth in sections 225.25(b)(18) and thereto within the meaning of section 4(c)(8) of the 225.25(b)(19) of Regulation Y, Applicant's proposal to Act. In determining whether an activity is a "proper provide, through CFC, advisory services with respect incident" to banking, the Board must consider wheth- to futures contracts on stock indexes, and options er the activity can reasonably be expected to produce thereon, is closely related to banking. benefits to the public that outweigh possible adverse In order to approve this application, the Board is effects. also required to determine that the performance of the The Board has determined that the combination of proposed activity by Applicant "can reasonably be advisory and brokerage services for financially sophis- expected to produce benefits to the public . . . that ticated customers with respect to financially related outweigh possible adverse effects . . . ." (12 U.S.C. futures contracts, including bullion, foreign exchange, § 1843(c)(8)). government securities, certificates of deposit, certain The record indicates that consummation of Appliother money market instruments, and a municipal cant's proposal can reasonably be expected to provide bond index, is closely related to banking.7 In addition, benefits to the public. Applicant's performance of these activities would provide added convenience to those clients of Applicant and its subsidiaries that trade in the cash, forward and futures markets for these instruments. The Board expects that the de novo entry of Applicant into the market for these services 4. Under an accord between the Securities and Exchange Commis- would increase the level of competition among providsion ("SEC") and the CFTC adopted by Congress (Pub. L. No. 97- ers of these services already in operation. According- 444, 96 Stat. 2294, 7 U.S.C. § 2(a) (1982) and Pub. L. No. 97-303, 96 ly, the Board concludes that the performance of the Stat. 1409, 15 U.S.C. § 77b (1982)), the SEC has exclusive jurisdiction over options on U.S. government securities and money market proposed activities by Applicant can reasonably be instruments. The CFTC has overlapping jurisdiction with the SEC expected to provide benefits to the public. over options on foreign currency and has exclusive jurisdiction over The Board has considered the potential for adverse options on bullion and on futures. effects that may be associated with this proposal. The 5. Citicorp, 70 FEDERAL RESERVE BULLETIN 591 (1984). 6. J.P. Morgan & Co., Incorporated, 71 FEDERAL RESERVE BUL- Board has previously determined that the combination LETIN 251 (1985). of investment advisory services and the execution and 7. 12 C.F.R. § 225.25(b)( 19); Bankers Trust New York Corporation, 71 FEDERAL RESERVE BULLETIN 111 (1985). clearance of futures contracts would not give rise to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 Federal Reserve Bulletin • March 1987 adverse effects.8 The Board found that the provision of es containing 100 or 500 securities, and will provide investment advisory services on futures contracts that only advisory services of a generalized nature.11 an FCM may execute and clear would not entail risks The Board has also considered possible adverse or conflicts of interest different from those considered effects from Applicant's proposed joint pricing of and addressed by the Board in its approvals of FCM futures advisory services and futures contract execuexecution and clearance services. In making its deter- tion and clearance services. Applicant would price its mination, the Board relied on the regulatory frame- investment advisory services as part of a package of work established by the CFTC for the trading of services, but would also make its futures advisory futures contracts, and the conditions set forth in services available on a separate-fee basis to customers Regulation Y with respect to the execution and clear- who wish to receive only advisory services. In ance of futures contracts, including the requirement NatWest, the Board found that the potential for that advice be limited to financially sophisticated adverse effects associated with this type of pricing customers that have significant dealings or holdings in would be reduced by the extensive regulatory framethe underlying commodities, securities or instruments. work to which NatWest's brokerage subsidiary would Similarly, in NatWest the Board found that the be subject, by NatWest's limitation of its services to combination of investment advice and securities bro- institutional customers only, and by the fact that kerage for institutional customers did not present the NatWest's brokerage subsidiary would charge a sepapotential for conflicts of interest and the other "subtle rate fee for customers desiring only investment advice hazards" that Congress identified with the combina- or execution. tion of commercial banking and the securities business These same factors are present under Applicant's and sought to avoid through passage of the Glass- proposal. As noted above, Applicant intends to price Steagall Act.9 The Board relied on the facts that the its investment advisory services as part of a package of services proposed by NatWest would be limited to services, but will also make its futures advisory serinstitutional customers and that NatWest's brokerage vices available on a separate-fee basis to customers subsidiary would be separate from its banking affili- who wish to receive only advisory services. The Board ates. also notes that CFC is subject to regulation by the As noted above, Applicant has limited its proposed CFTC, and, as noted above, CFC will provide advisoprovision of advisory services to institutional custom- ry services only to financially sophisticated customers, as defined in NatWest. In addition, Applicant ers. would be subject to the Board's regulations concern- For these reasons, the Board concludes that the ing FCMs,10 which require, among other things, that limitations proposed by Applicant and required by the the activity be conducted through a separate subsid- Board's regulations would be sufficient to prevent any iary, be subject to the regulatory framework estab- significant conflicts of interest or unsound banking lished pursuant to law by the CFTC for the trading of practices. futures and be limited to financial institutions and Based upon the foregoing consideration of all the other financially sophisticated customers that have relevant facts, the Board concludes that the balance of significant dealings or holdings in the underlying com- the public interest factors that the Board is required to modities, securities, or instruments. consider under section 4(c)(8) is favorable. According- The potential for adverse effects from Applicant's ly, the application is hereby approved, subject to proposal is further minimized by the fact that CFC will commitments made by Applicant and the conditions provide advisory services only with respect to futures set forth in this Order. contracts, and options thereon, on broad-based index- This determination is also subject to all of the conditions set forth in Regulation Y, including sections 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), and to the Board's authority to require such modification or termination of the activities of a bank holding company or any of its subsidiaries as the 8. 12 C.F.R. § 225.25(b)(19); Bankers Trust New York Corporation, 71 FEDERAL RESERVE BULLETIN 111 (1985). 9. Investment Company Institute v. Camp, 401 U.S. 617 (1971); Board of Governors v. Investment Company Institute, 450 U.S. 46 11. The Board's approval of this application does not authorize (1984). These subtle hazards include the possibilities that public Applicant to provide FCM advisory services related to futures conconfidence in a bank might be impaired if the securities affiliate of the tracts on stock indexes, and options thereon, based on individual bank performed poorly, that a bank might make unsound loans to the stocks or narrowly-based stock indexes. Applicant would be required securities affiliate or to companies in whose stock the affiliate had to receive the prior writteft Approval of the Federal Reserve Bank of invested, and that the bank might make loans to customers to be used New York, in consultation with the Board's General Counsel, in order for the purchase of stocks. to provide advisory services with respect to any additional broad- 10. 12 C.F.R. §§ 225.25(b)(18),(19). based futures contracts on stock indexes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 223 Board finds necessary to assure compliance with the not propose to extend credit, and does not propose to provisions and purposes of the Act and the Board's offer investment advice to customers in connection regulations and orders issued thereunder, or to pre- with the proposed services. vent evasion thereof. Applicant is a multibank holding company with 30 The transaction shall not be made not later than subsidiary banks in four states, controlling total deposthree months after the effective date of this Order, its of approximately $12 billion.2 FUBS has been unless such period is extended for good cause by the approved as a discount broker to engage in securities Board or by the Federal Reserve Bank of New York brokerage activities permissible for bank holding compursuant to delegated authority. panies under section 225.25(b)(15) of the Board's By order of the Board of Governors, effective Regulation Y, 12 C.F.R. § 225.25(b)(15). January 23, 1987. The proposed activities of FUBS are essentially identical to activities previously approved by the Voting for this action: Vice Chairman Johnson and Gover- Board.3 In addition, banks have traditionally engaged nors Seger, Angell, and Heller. Absent and not voting: Chairman Volcker. in the purchase and sale of gold and silver bullion.4 Thus, the Board concludes that Applicant's proposal JAMES MCAFEE to engage in the purchase and sale of bullion and coins [SEAL] Associate Secretary of the Board for the account of customers is closely related to banking. In order to approve this application, the Board is First Union Corporation also required to determine that the performance of the Charlotte, North Carolina proposed activities by Applicant "can reasonably be expected to produce benefits to the public . . . that Order Approving an Application to Purchase and outweigh possible adverse effects . . . ." (12 U.S.C. Sell Precious Metals and Coins for the Account of § 1843(c)(8)). Consummation of Applicant's proposal Customers will result in increased convenience to customers. In addition, the Board expects that the entry of Applicant First Union Corporation, Charlotte, North Carolina, a into the market for these services will increase the bank holding company within the meaning of the Bank level of competition among providers of these ser- Holding Company Act, 12 U.S.C. § 1841 et seq. vices. Accordingly, the Board concludes that the per- ("BHC Act"), has applied pursuant to section 4(c)(8) formance of the proposed activities by Applicant can of the BHC Act and section 225.23(a) of the Board's reasonably be expected to produce benefits to the Regulation Y, 12 C.F.R. § 225.23(a), to engage de public. novo through its subsidiary, First Union Brokerage The Board has also considered the potential for Services, Inc., Charlotte, North Carolina ("FUBS"), adverse effects that may be associated with this proin the purchase and sale of gold and silver bullion and posal. There is no evidence in the record that consumcoins for the account of its customers. mation of the proposed transactions would result in Notice of the application, affording interested per- any adverse effects such as decreased competition, sons an opportunity to submit comments, has been undue concentration of resources, unfair competition, duly published (51 Federal Register 40,515 (1986)). conflicts of interest, or unsound banking practices. The time for filing comments has expired, and the Applicant's proposal to buy and sell gold and silver Board has considered the application and all com- bullion and coins is a fee-generating, nonleveraged ments received in light of the public interest factors set activity that the Board believes would not have an forth in section 4(c)(8) of the BHC Act. adverse effect on Applicant's financial resources. Ac- FUBS proposes to engage in the purchase and sale cordingly, the financial and managerial resources of of silver and gold bullion and coins for the account of Applicant and its subsidiaries overall are consistent customers. FUBS will not engage in the purchase and with approval of the application. sale of platinum and palladium,1 nor will it deal in gold or silver for its own account. In addition, FUBS does 2. Data are as of September 30, 1986. 3. Texas American Bancshares, Inc., 72 FEDERAL RESERVE BUL- LETIN 501 (1986); First Interstate Bancorp, 71 FEDERAL RESERVE BULLETIN 467 (1985). See also The HongKong and Shanghai Banking 1. In Standard and Chartered Banking Group Ltd., 38 Federal Corp., 72 FEDERAL RESERVE BULLETIN 345 (1986); Standard and Register 27,552 (1973), the Board found that the activities of dealing in Chartered Banking Group Ltd., 38 Federal Register 21,552 (1973). platinum and palladium were not authorized for national banks and 4. See, e.g., 12 U.S.C. § 24(7) (national banks are explicitly permitwere not closely related to banking. ted to buy and sell coins and bullion). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 Federal Reserve Bulletin • March 1987 Based upon a consideration of all the facts of record, clearance, on major commodity exchanges, of futures the Board concludes that the balance of the public contracts on stock indexes, options on such futures interest factors that the Board is required to consider contracts, and futures contracts on a municipal bond under section 4(c)(8) is favorable. Accordingly, the index and Government National Mortgage Association application is hereby approved. ("GNMA") certificates. This determination is subject to all of the conditions RCC proposes to execute and clear: set forth in the Board's Regulation Y, including those in sections 225.4(d) and 225.23(b) (12 C.F.R. (1) the Standard & Poor's 100 Stock Price Index §§ 225.4(d) and 225.23(b)), and to the Board's author- futures contract, the Standard & Poor's 500 Stock ity to require such modification or termination of the Price Index futures contract ("S&P 500"), options activities of a bank holding company or any of its on the S&P 500, and the Standard & Poor's Oversubsidiaries as the Board finds necessary to assure the-Counter 250 Stock Index futures contract, all of compliance with the provisions and purposes of the which are currently traded on the Index and Option BHC Act and the Board's regulations and order issued Division of the Chicago Mercantile Exchange; (2) thereunder, or to prevent evasion thereof. the Major Market Index Maxi Stock Index futures The activity shall be commenced not later than three contract, the Major Market Index Mini Stock Index months after the effective date of this Order, unless futures contract, the Bond Buyer Municipal Bond such period is extended for good cause by the Board or Index futures contract, and the GNMA Cash Settled by the Federal Reserve Bank of Richmond, pursuant futures contract, all of which are currently traded on to delegated authority. the Chicago Board of Trade; (3) the New York By order of the Board of Governors, effective Stock Exchange ("NYSE") Composite Index fu- January 12, 1987. tures contract, and options on the NYSE Composite Index futures, both of which are currently traded on the New York Futures Exchange, a subsidiary of Voting for this action: Chairman Volcker and Governors Johnson, Seger, and Heller. Absent and not voting: Governor the New York Stock Exchange; and (4) the Value Angell. Line Futures (Maxi) and Value Line Futures (Mini) Index contracts, both of which are currently traded JAMES MCAFEE on the Kansas City Board of Trade. [SEAL] Associate Secretary of the Board Applicants propose to offer these services to major corporations, financial institutions, and other sophisticated customers in the United States and abroad. Saban, S.A. Notice of the application, affording interested per- Panama City, Panama sons an opportunity to submit comments on the relation of the proposed activities to banking and on the Republic New York Corporation balance of public interest factors, has been duly pub- New York, New York lished (51 Federal Register 45,179 (1986)). The time for filing comments has expired, and the Board has con- Order Approving Application to Execute and Clear sidered the application and all comments received in Futures Contracts on Stock Indexes, Options on light of the public interest factors set forth in section such Futures Contracts, and Futures Contracts on a 4(c)(8) of the Act. Municipal Bond Index and Government National Saban, S.A., with total unconsolidated assets of Mortgage Association Certificates $193.5 million, holds 33.3 percent of the shares of Republic New York Corporation.1 Republic, with con- Saban, S.A., Panama City, Panama, and Republic solidated assets of $16.8 billion,2 is the 10th largest New York Corporation, New York, New York ("Re- banking organization in New York. Republic operates public"), bank holding companies within the meaning one subsidiary bank and engages through certain of its of the Bank Holding Company Act, 12 U.S.C. § 1841 subsidiaries in a variety of nonbanking activities. RCC et seq. ("Act"), have applied pursuant to section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a)(3) of the Board's Regulation Y (12 C.F.R. § 225.23(a)(3)) to engage de novo through their wholly 1. As of December 1, 1986. Saban, S.A., received approval on owned subsidiary, Republic Clearing Corporation, October 1, 1986, to acquire up to an additional 3.3 percent of the shares of Republic. New York, New York ("RCC"), in the execution and 2. Banking data are as of June 30, 1986. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 225 is a futures commission merchant ("FCM") registered relied on the regulatory framework established pursuwith the Commodity Futures Trading Commission ant to law by the CFTC for the trading of futures, as ("CFTC") that engages in the execution and clearance well as the conditions set forth in section 225.25(b)(18) of futures contracts on gold and silver, financial instru- of Regulation Y with respect to executing and clearing ments and foreign currencies, and options on such futures contracts and options thereon. futures contracts.3 The financial and managerial resources and future The Board has previously determined that the exe- prospects of Applicant are considered consistent with cution and clearance of futures contracts and options approval. Based upon a consideration of all the releon futures contracts based on stock indexes, and of vant facts, the Board concludes that the balance of the futures contracts on a municipal bond index, are public interest factors that the Board is required to closely related to banking. J.P. Morgan & Co. Incor- consider under section 4(c)(8) is favorable. Accordingporated, 71 FEDERAL RESERVE BULLETIN 251 (1985); ly, based on all the facts of record and the commit- Bankers Trust New York Corporation, 71 FEDERAL ments made by Applicants, and subject to the condi- RESERVE BULLETIN 111 (1985). The execution and tions in this Order, the Board has determined that the clearance of futures contracts on government securi- proposed application should be, and hereby is, apties is permissible under Regulation Y, 12 C.F.R. proved. This determination is subject to all of the § 225.25(b)(18). The proposed activities of RCC are conditions set forth in Regulation Y, including sections essentially identical to those activities previously per- 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and mitted pursuant to Regulation Y or approved by the 225.23(b)(3)), and to the Board's authority to require Board. Thus, the Board concludes that Applicants' such modification or termination of the activities of a proposal to execute and clear futures contracts on the bank holding company or any of its subsidiaries as the proposed stock indexes, options thereon, and futures Board finds necessary to assure compliance with, or to contracts on a municipal bond index and GNMA prevent evasion of, the provisions and purposes of the certificates is closely related to banking. Act and the Board's regulations and orders issued thereunder. Under section 4 of the Act, the Board is also required to determine that the performance of the The transaction shall be made not later than three proposed activities by Applicants "can reasonably be months after the effective date of this Order, unless expected to produce benefits to the public . . . that such period is extended for good cause by the Board or outweigh possible adverse effects, such as undue by the Federal Reserve Bank of New York, pursuant concentration of resources, decreased or unfair com- to delegated authority. petition, conflicts of interests, or unsound banking By order of the Board of Governors, effective practices." (12 U.S.C. § 1843(c)(8)). January 20, 1987. Consummation of Applicants' proposal would provide added convenience to those clients of Applicants Voting for this action: Chairman Volcker and Governors and their subsidiaries that trade in the cash, forward Johnson, Seger, Angell, and Heller. and futures markets for those instruments. The Board expects that the de novo entry of Applicants into the JAMES MCAFEE market for these services would increase the level of [SEAL] Associate Secretary of the Board competition among providers of these services already in operation. Accordingly, the Board concludes that the performance of the proposed activities by Applicants can reasonably be expected to provide benefits Sovran Financial Corporation to the public. Norfolk, Virginia Moreover, there is no evidence in the record that consummation of the proposed FCM activities would Order Approving an Application to Provide Cash result in any adverse effects such as undue concentra- Management Services tion of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices. In Sovran Financial Corporation, Norfolk, Virginia, a addition, the Board has taken into account and has bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended (12 U.S.C. § 1841 et seq.) (the "Act"), has applied for the Board's approval under section 4(c)(8) of the Act 3. Applicants and RCC have received approval for these activities. (12 U.S.C. § 1843(c)(8)) and section 225.23 of the Republic New York Corporation, 63 FEDERAL RESERVE BULLETIN 251 (1977); Republic New York Corporation , Order of March 2, 1984. Board's Regulation Y (12 C.F.R. § 225.23), to expand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 Federal Reserve Bulletin • March 1987 the activities of its subsidiary, Sovran Investment natives which SIC will utilize to the extent they are Corporation, Richmond, Virginia ("SIC"), to include readily obtainable.4 There will be a specific fee for the the provision of cash management services.1 service. Notice of the application, affording interested per- This particular service will be offered by SIC, exclusons an opportunity to submit comments on the pro- sively to corporate and other institutional customers. posal, has been duly published (51 Federal Register In determining whether an activity is permissible 41,154 (1986)). The time for filing comments has under section 4(c)(8) of the Act, the Board must first expired, and the Board has considered the application determine that the activity is "closely related to bankand all comments received in light of the public ing or managing or controlling banks." The Board has interest factors set forth in section 4(c)(8) of the Act. not previously found the provision of cash manage- Applicant, a multibank holding company, has total ment services, standing alone, to be closely related to consolidated assets of approximately $14.3 billion.2 banking. The Board has approved applications which Applicant also engages through certain subsidiaries in included cash management services when offered as other nonbanking activities permissible for bank hold- an incident to securities brokerage activities authoing companies.3 rized by section 225.25(b)(15), however.5 The cash Applicant proposes to transfer to SIC the cash management services here might be viewed as ancilmanagement services for corporate and other institu- lary to activities authorized in section 225.25(b)(16) of tional customers currently provided by Sovran Bank, Regulation Y (12 C.F.R. § 225.25(b)(16)), though to N.A. The cash management services to be offered by the extent a customer wishes to invest in certain types SIC will be an account balance management service. of investments, such as commercial paper, the ser- SIC will coordinate its cash management service for a vices might involve the purchase and sale of securities particular customer with a designated account officer that do not qualify as bank-eligible securities. Moreat Sovran Bank, N.A. or other bank affiliate of SIC. A over, cash management services are provided by target demand deposit balance will be agreed upon by banks generally.6 On this basis, the Board finds the the customer and the customer's bank account officer. proposed activity to be closely related to banking. SIC personnel will monitor deposit account balances In order to approve this application, the Board must daily, or as otherwise agreed upon, and advise the also find that the performance of the proposed activity customer of the account status, but the customer will "can reasonably be expected to produce benefits to then determine what disposition to make of any excess the public, such as greater convenience, increased funds. When a customer has available excess funds competition, or gains in efficiency, that outweigh over the targeted balance, SIC employees will discuss possible adverse effects, such as undue concentration with such corporate and other institutional customer of resources, decreased or unfair competition, conprevailing money market conditions and available flicts of interests, or unsound banking practices." short-term investment alternatives. Customers may Applicant's proposal represents a corporate reorganialso pre-designate a specified list of investment alter- zation wherein activities currently performed by one of its subsidiary banks, Sovran Bank, N.A., will be 1. SIC has previously received authorization under the Act to: 4. Excess customers' funds would be invested in overnight repur- (1) provide securities brokerage services under section chase agreements (with Sovran Bank, N.A. as principal, or with third- 225.25(b)(15) of Regulation Y (12 C.F.R. § 225.25(b)(15)); party borrowers through Sovran Bank, N.A. as agent), taxable and (2) buy and sell, as agent on behalf of unaffiliated persons, options tax-exempt commercial paper, short-term government or agency on securities issued or guaranteed by the U.S. Government and securities, or other specified money market investments. its agencies, and options on U.S. and foreign money market 5. In BankAmerica Corporation, 69 FEDERAL RESERVE BULLETIN instruments; 105 (1983), the Board found that a "money market sweep" service (3) purchase and sell gold and silver bullion and gold coins solely offered by a retail discount securities brokerage to its customers in for the account of customers; connection with the brokerage's carrying the customers' accounts was (4) underwrite and deal in government obligations and money closely related to banking as well as an incidental activity in connecmarket instruments under section 225.25(b)(16) of Regulation Y tion with the brokerage's securities brokerage and margin lending (12 C.F.R. § 225.25(b)(16)); activities. The "money market sweep" was a "sweep" arrangement, (5) provide investment advice relating solely to government pursuant to which idle customer balances exceeding a predetermined obligations and money market instruments; and minimum were automatically invested in an unaffiliated money market (6) provide certain fiduciary services, including securities safe- mutual fund. keeping, custodial services, and acting as a paying agent and as a In National Westminster Bank PLC, 72 FEDERAL RESERVE BULLEdividend disbursement agent. TIN 584 (1986), the Board approved an application which included 2. Banking data are as of September 30, 1986. cash management services incident to the provision of brokerage 3. Applicant has previously been authorized to engage through services. Sovran Capital Management, Richmond, Virginia ("SCM"), in 6. See National Courier Association v. Board of Governors, 516 the provision of investment or financial advice on a fee basis. F.2d 1229 (D.C. Cir. 1975). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 227 conducted by SIC. Because the proposal would result ly acquire its nine subsidiary banks.1 Applicant also in a transfer of the activities within the same corporate has applied under section 4(c)(8) of the Act, 12 U.S.C. structure, approval of the application would have no § 1843(c)(8), and section 225.23(a)(2) of the Board's adverse competitive effects. The Board finds that the Regulation Y, 12 C.F.R. § 225.23(a)(2), to acquire conduct by SIC of this activity will not result in Company's four nonbank subsidiaries: conflicts of interest, unsound banking practices, undue (i) Citizens Fidelity Capital Markets, Inc., Louisconcentration of resources, or other adverse effects. ville, Kentucky, a company that engages in discount Based upon a consideration of all the relevant facts, brokerage activities as well as underwriting and the Board concludes that the balance of the public dealing in government obligations; interest factors that the Board is required to consider (ii) Citizens Fidelity Leasing Corporation, Louisunder section 4(c)(8) is favorable. Accordingly, the ville, Kentucky, a company that finances personal application is hereby approved. This determination is property leases; subject to the conditions set forth in section 225.4(c) of (iii) CFC Financial Services, Inc., Louisville, Ken- Regulation Y, and to the Board's authority to require tucky, a company that engages in data processing such modification or termination of the activities of a and transmission; and bank holding company or any of its subsidiaries as the (iv) Citizens Fidelity (Ohio) N.A., Cincinnati, Ohio, Board finds necessary to assure compliance with the a company that engages in credit card lending operaprovisions and purposes of the Act and the Board's tions. regulations and orders issued thereunder, or to prevent evasion thereof. These activities have been determined by the Board to The transaction shall be made not later than three be closely related to banking and permissible for bank months after the effective date of this Order, unless holding companies generally.2 such period is extended for good cause by the Board or Notice of these applications, affording an opportuniby the Federal Reserve Bank of Richmond, pursuant ty for interested persons to submit comments, has to delegated authority. been given in accordance with sections 3 and 4 of the By order of the Board of Governors, effective Act, 12 U.S.C. §§ 1842 and 1843. 51 Federal Register January 20, 1987. 39,713, 46,934 (1986). The time for filing comments has expired, and the Board has considered the applications and all comments received in light of the factors set Voting for this action: Chairman Volcker and Governors forth in section 3(c) of the Act, 12 U.S.C. § 1842(c), Johnson, Seger, Angell, and Heller. and the considerations specified in section 4(c)(8) of the Act, 12 U.S.C. § 1843(c)(8). JAMES MCAFEE Applicant's proposal represents the first acquisition [SEAL] Associate Secretary of the Board by a Pennsylvania bank holding company of a Kentucky banking organization and Indiana banks. The Board is prohibited by the Douglas Amendment to the Act from approving any application by a bank Orders Issued Under Sections 3 and 4 of the Bank Holding Company Act PNC Financial Corp 1. The banks to be acquired are as follows: Citizens Fidelity Bank and Trust Company, Louisville, Kentucky; Citizens Fidelity Bank Pittsburgh, Pennsylvania and Trust Company Winchester, Winchester, Kentucky; Citizens Fidelity Bank and Trust Company Hardin County, Elizabethtown, Kentucky; Citizens Fidelity Bank and Trust Company Lexington, Order Approving the Acquisition of a Bank Holding Lexington, Kentucky; Citizens Fidelity Bank and Trust Company of Company Oldham County, LaGrange, Kentucky; Madison National Bank of Richmond, Richmond, Kentucky; Mercer County National Bank of Harrodsburg, Harrodsburg, Kentucky; Indiana Southern Bank, Sel- PNC Financial Corp, Pittsburgh, Pennsylvania, a bank lersburg, Indiana; and First Midwest Bank and Trust Company, New holding company within the meaning of the Bank Albany, Indiana. Holding Company Act ("Act"), 12 U.S.C. § 1841 In connection with this application, Blue Grass Acquisition Corp, Lexington, Kentucky, a wholly owned subsidiary of PNC, has applied et seq., has applied for the Board's approval under to become a bank holding company by merger with Company. section 3 of the Act, to acquire 100 percent of the 2. In the event the proposed transaction is not consummated. Applicant plans to exercise its option to acquire Company's authovoting shares of Citizens Fidelity Corporation, Lexrized but unissued treasury shares for $198 million and has applied for ington, Kentucky ("Company"), and thereby indirect- the Board's approval for such acquisition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 Federal Reserve Bulletin • March 1987 holding company to acquire directly or indirectly a billion, or 11.4 percent of the deposits in commercial bank located outside the bank holding company's banks in Kentucky.8 Company also controls two home state,3 unless the state where the bank to be banks in Indiana, representing less than one percent of acquired is located has specifically authorized the deposits in commercial banks in that state. Company acquisition "by language to that effect and not merely does not control banks in Pennsylvania. The Board, by implication." Applicant's home state is Pennsylva- therefore, concludes that consummation of Applinia. The statute laws of Kentucky authorize the acqui- cant's proposal would not have any significant adverse sition of a bank or bank holding company in that state effect on the concentration of banking resources in by a bank holding company located in another state Kentucky, Indiana or Pennsylvania. within a defined region, which includes Pennsylvania, The Board has considered the effects of this transacif the laws of that state permit the acquisition of a bank tion upon competition in all relevant banking markets. in that state by a Kentucky bank holding company.4 Applicant's proposal involves the combination of two Pennsylvania has enacted a similar statute, which sizeable commercial banking firms that are among the permits the acquisition of a Pennsylvania bank by a larger banking organizations in their respective states. Kentucky bank holding company.5 Accordingly, the Applicant does not, however, provide banking ser- Board concludes that the Douglas Amendment does vices in any market in which Company's subsidiary not prohibit Board approval for Applicant's acquisi- banks compete. Accordingly, consummation of this tion of Company's subsidiary banks in Kentucky. proposal would not eliminate significant existing com- Indiana law does not specifically include Pennsylva- petition in any relevant market. nia within its interstate banking region. A state superi- The Board also has considered the effect of the or court in Indiana recently has ruled, however, that proposed acquisition on probable future competition Indiana law6 specifically authorizes Applicant to ac- in Kentucky, Indiana and Pennsylvania. In view of the quire indirectly two Indiana banks owned by Company numerous potential entrants into each of the markets in connection with Applicant's acquisition of Compa- served by either Company or Applicant, the Board ny, provided Applicant divests the Indiana banks, in concludes that consummation of the proposed transacaccordance with the Indiana statute, within two years tion would not have any significant adverse effect on of consummating its proposal.7 The Attorney General probable future competition in any relevant market. of Indiana has advised the Board that, pursuant to the The financial and managerial resources of Appliwishes of the Indiana banking commissioner, he will cant, its subsidiaries and the Banks are consistent with not appeal the superior court's ruling. Accordingly, on approval. Considerations relating to the convenience the basis of this final ruling by an Indiana court that and needs of the community to be served are also Indiana law specifically authorizes Applicant's indi- consistent with approval. Based on the foregoing and rect acquisition of Company's two Indiana banks other facts of record, the Board has determined that subject to the two year divestiture requirement, the the proposed acquisition and merger are in the public Board concludes that approval of Applicant's proposal interest and that the applications should be, and hereto acquire Company, including Company's two Indiby are, approved. ana banks, is not barred by the Douglas Amendment. Applicant also has applied under section 4(c)(8) of Applicant is the second largest commercial banking the Act to acquire Company's credit card lending organization in Pennsylvania, controlling total depos- operations in Ohio9 and its three nonbank subsidiaries its of $12.8 billion, representing 12.6 percent of the in Kentucky. Applicant and Company do not compete deposits in commercial banks in Pennsylvania. Com- in any of the same markets, except for certain leasing pany is the second largest commercial banking organi- activities. However, Applicant and Company do not zation in Kentucky, controlling total deposits of $3.3 provide the same type of leasing services. Accordingly, approval of these applications will have no significant adverse effect on competition in any relevant 3. A bank holding company's home state for purposes of the Douglas Amendment is that state in which the total deposits of its banking subsidiaries were largest on July 1, 1966, or on the date it became a bank holding company, whichever is later. 12 U.S.C. § 1842(d). 4. Ky. Rev. Stat. § 287.900 et seq. (1984). 8. State deposit data are as of June 30, 1986. Market deposit data 5. 1986 Pa. Laws No. 69 (enacted June 25, 1986). are as of June 30, 1985. 6. Ind. Code §§ 28-2-15-22(b) and 28-2-15-27 (1985). 9. The Board has conditioned approval of Applicant's acquisition 7. Amended Order and Amended Findings of Fact and Conclusions of Citizens Fidelity (Ohio), N.A., Cincinnati, Ohio, which engages in of Law, Superior Court of Floyd County (December 11, 1986), credit card activities, on the limitations imposed in Company's overruling Official Opinion No. 86-7 (August 1986) of the Attorney acquisition of the bank. See, Citizens Fidelity Corporation, 69 FEDER- General of Indiana. AL RESERVE BULLETIN 556 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 229 market. Furthermore, there is no evidence in the delegated authority. The determinations as to Applirecord to indicate that approval of Applicant's pro- cant's nonbanking activities are subject to all of the posed nonbanking operations would result in undue limitations in Regulation Y, including those in sections concentration of resources, decreased or unfair com- 225.4(d) and 225.23(b)(3), 12 C.F.R. §§ 225.4(d) and petition, conflicts of interest, unsound banking prac- 225.23(b)(3), and to the Board's authority to require tices, or other adverse effects. Accordingly, the Board such modification or termination of the activities of a finds that the balance of public interest factors it must bank holding company or any of its subsidiaries as the consider under section 4(c)(8) of the Act is favorable Board finds necessary to assure compliance with, or and consistent with approval of the application to prevent evasion of, the provisions and purposes of the acquire Company's nonbanking subsidiaries. Act and the Board's regulations and orders issued Based on the foregoing and other facts of record, the thereunder. Board has determined that these applications under By order of the Board of Governors, effective sections 3 and 4 of the Act should be and hereby are January 28, 1987. approved. The acquisition of Company shall not be consummated before the thirtieth calendar day follow- Voting for this action: Chairman Volcker and Governors ing the effective date of this Order or later than three Johnson, Seger, Angell, and Heller. months after the effective date of the Order, unless such period is extended for good cause by the Board or JAMES MCAFEE the Federal Reserve Bank of Cleveland, pursuant to [SEAL] Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board 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 Effective Applicant Bank(s) ICNB Financial Corporation, Ionia County National Bank of Ionia, January 7, 1987 Ionia, Michigan Ionia, Michigan Section 4 ,. „ Nonbanking Effective AApplicant ^ Company date James Madison Limited, Lease Masters Inc., December 29, 1986 Washington, D.C. Rockville, Maryland Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 Federal Reserve Bulletin • March 1987 By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date ALT A VISTA BANCSHARES, Alta Vista State Bank, Chicago January 23, 1987 INC., Alta Vista, Iowa Alta Vista, Iowa American National Corporation, NOR-EVAN CORPORATION, Chicago January 27, 1987 Chicago, Illinois Evanston, Illinois First Schiller Bancorp, Inc., Schiller Park, Illinois Merchants Corporation, Melrose Park, Illinois Atlanta National Corporation, Atlanta National Bank, New York December 30, 1986 Atlanta, New York Atlanta, New York Banc One Corporation, Northwest National Bank, Cleveland December 26, 1986 Columbus, Ohio Rensselaer, Indiana Banc Services Corp., The Orrville Savings Bank, Cleveland January 5, 1987 Orrville, Ohio Orrville, Ohio Bank Shares Incorporated, First State Bank of Apple Valley, Minneapolis December 22, 1986 Minneapolis, Minnesota Apple Valley, Minnesota BankEast Corporation, BankEast Savings Bank and Boston January 9, 1987 Manchester, New Hampshire Trust, Rochester, New Hampshire Bankers' Financial Services The Schuylkill Haven Trust Philadelphia January 14, 1987 Corporation, Company, Schuylkill Haven, Schuylkill Haven, Pennsylvania Pennsylvania Belfast Holding Company, Bank of Belfast, Atlanta January 5, 1987 Belfast, Tennessee Belfast, Tennessee BMR Bancorp, Inc., Toombs Bank Shares, Inc., Atlanta December 24, 1986 Atlanta, Georgia Vidalia, Georgia Canton Bancshares, Inc., Canton State Bank, Chicago December 18, 1986 Canton, Illinois Canton, Illinois Cardinal Bancorp, Inc., The First National Bank of Philadelphia January 22, 1987 Everett, Pennsylvania Everett, Everett, Pennsylvania Citizens Bancshares of The Citizens State Bank, Kansas City December 31, 1986 Marysville, Inc., Marysville, Kansas Marysville, Kansas Citizens Financial Corp., Citizens National Bank of Elkins, Richmond January 9, 1987 Elkins, West Virginia Elkins, West Virginia CNB, Inc., Community National Bank, Atlanta January 28, 1987 Lake City, Florida Lake City, Florida Codorus Valley Bancorp., Inc., Peoples Bank of Glen Rock, Philadelphia December 31, 1986 Glen Rock, Pennsylvania Glen Rock, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 231 Section 3—Continued . Reserve Effective Applicant Bankw(s) fiank datg Community Bancshares, Inc., Morgan County Bank, Atlanta January 28, 1987 Blountsville, Alabama Falkville, Alabama Madison County Bank, New Hope, Alabama Community Bancshares, Inc., Bosworth State Bank, Kansas City December 26, 1986 Chillicothe, Missouri Bosworth, Missouri Community Bank, Chillicothe, Missouri State Bank of Maryville, Maryville, Missouri Community Bank of Savannah, Savannah, Missouri Community Bank of Warrensburg, Warrensburg, Missouri Cooper Lake Financial First National Bank in Cooper, Dallas January 27, 1987 Corporation, Cooper, Texas Cooper, Texas Cornerstone Bancshares, Inc., Cornerstone Bank, N.A., Dallas January 15, 1987 Dallas, Texas Dallas, Texas Dinsdale Brothers, Inc., The Mitch Corporation, Kansas City December 18, 1986 Palmer, Nebraska Mitchell, Nebraska First National Bank in Mitchell, Mitchell, Nebraska Dominion Bankshares First Dickson Corporation, Richmond January 2, 1987 Corporation, Dickson, Tennessee Roanoke, Virginia Fairfield Financial Corporation, First Fairfield Bankshares, Inc., Dallas December 31, 1986 Fairfield, Texas Fairfield, Texas Financial Institutions, Inc., The Pavilion State Bank, New York January 16, 1987 Warsaw, New York Pavilion, New York First Apple River Corporation, Apple River State Bank, Chicago January 15, 1987 Apple River, Illinois Apple River, Illinois First Bancorp, Inc., The First Western Bank Sturgis, Minneapolis January 14, 1987 Minneapolis, Minnesota Sturgis, South Dakota First Chicago Corporation, NOR-EVAN CORPORATION, Chicago, January 27, 1987 Chicago, Illinois Evanston, Illinois First Schiller Bancorp, Inc., Schiller Park, Illinois, Merchants Corporation, Melrose Park, Illinois First Merchants Bancorp, Inc., The Merchants National Bank of Richmond January 7, 1987 Montgomery, West Virginia Montgomery, Montgomery, West Virginia The Gauley National Bank, Gauley Bridge, West Virginia First National Bancorp, Inc., The First National Bank of New York December 30, 1986 Norfolk, New York Norfolk, Norfolk, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 Federal Reserve Bulletin • March 1987 Section 3—Continued . „ . Reserve Effective Applicant B ankw(s) BanR date First National Bankshares The First National Bank in Richmond December 31, 1986 Corporation, Ronceverte, Ronceverte, West Virginia Ronceverte, West Virginia First Peoples Financial First Peoples Bank of New Philadelphia January 12, 1987 Corporation, Jersey, Westmont (Haddon Westmont (Haddon Township), Township), New Jersey New Jersey FNB Corp, First National Bank in Mount Chicago December 30, 1986 Mount Clemens, Michigan Clemens, Mount Clemens, Michigan Frandsen Financial Corporation, Farmers and Merchants State Minneapolis December 30, 1986 Rush City, Minnesota Bank of Hinckley, Hinckley, Minnesota Goliad Banc shares, Inc., The First National Bank of Dallas January 6, 1987 Goliad, Texas Goliad, Goliad, Texas Hasten Bancorp, H & H Financial Corporation, Chicago January 13, 1987 Indianapolis, Indiana Kokomo, Indiana First National Financial Corp of Martinsville, Martinsville, Indiana First Bank and Trust Company of Clay County, Indiana, Brazil, Indiana Sullivan State Bank, Sullivan, Indiana Peoples State Bank, Farmersburg, Indiana Farmers Banc, Inc., Tipton, Indiana Hawaii National Bancshares, Hawaii National Bank, San Francisco January 14, 1987 Inc., Honolulu, Hawaii Honolulu, Hawaii Highlands Bankshares, Inc., The Capon Valley Bank, Richmond January 9, 1987 Petersburg, West Virginia Wardensville, West Virginia Jack's Fork Bancorporation, Texas County Bank, St. Louis December 24, 1986 Inc., Houston, Missouri Mountain View, Missouri J.R. Montgomery Fort Sill National Bank, Kansas City January 9, 1987 Bancorporation, Fort Sill, Oklahoma Lawton, Oklahoma Luzerne National Bank The Luzerne National Bank, Philadelphia January 23, 1987 Corporation, Luzerne, Pennsylvania Luzerne, Pennsylvania Madison Corporation, Madison Bank and Trust, St. Louis January 7, 1987 Little Rock, Arkansas Kingston, Arkansas MBI Bancshares, Inc., The Bank of Kansas City, Kansas City December 24, 1986 Kansas City, Missouri Kansas City, Missouri Westport Bank, Kansas City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 233 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Merchants Holding Company, Merchants Bank, Minneapolis December 18, 1986 Rugby, North Dakota Rugby, North Dakota Metropolitan Bank Group, Inc., Metropolitan Bank Plymouth, Minneapolis December 24, 1986 Bloomington, Minnesota Plymouth, Minnesota Minnesota Valley Bancshares, Minnesota Valley Bank, Minneapolis December 23, 1986 Inc., Redwood Falls, Minnesota Minneapolis, Minnesota Tracy State Bank, Tracy, Minnesota Murray County State Bank, Slayton, Minnesota Montgomery County Montgomery County Bank, Atlanta January 12, 1987 Bankshares, Inc., Ailey, Georgia Ailey, Georgia Montgomery County First National Bank in Mena, St. Louis January 22, 1987 Bancshares, Inc., Mena, Arkansas Little Rock, Arkansas Morristown Holding Company, State Bank of Morristown, Minneapolis January 8, 1987 Minneapolis, Minnesota Morristown, Minnesota NBD Bancorp, Inc., USAmeribancs, Inc., Chicago January 27, 1987 Detroit, Michigan Highland Park, Illinois NBD Valley Corporation, Detroit, Michigan Old National Bancorp, Gibson County Bank, St. Louis December 30, 1986 Evansville, Indiana Princeton, Indiana Park National Corporation, The Park National Bank, Cleveland January 14, 1987 Newark, Ohio Newark, Ohio Parkin Bancorp, Inc., First State Bank, St. Louis January 9, 1987 Parkin, Arkansas Parkin, Arkansas Pikeville National Corporation, First Security Bank and Trust Cleveland January 21, 1987 Pikeville, Kentucky Co., Whitesburg, Kentucky River Region Bancshares, Inc., Bank of Fords ville, St. Louis December 18, 1986 Fordsville, Kentucky Fordsville, Kentucky SouthTrust Corporation, Birmingham, Alabama SouthTrust Corporation of SBT Bancshares, Inc., Atlanta December 22, 1986 Covington Co., Inc., Arab, Alabama Opp, Alabama Southwest Bancshares, Inc., Buffalo Bank, Kansas City November 28, 1986 Hermitage, Missouri Buffalo, Missouri First National Bank, Republic, Missouri Citizens State Bank of Polk County, Bolivar, Missouri Humansville Bank, Humansville, Missouri Turbotville National Bancorp, The Turbotville National Bank, Philadelphia December 26, 1986 Inc., Turbotville, Pennsylvania Turbotville, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 Federal Reserve Bulletin • March 1987 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Turner Bancshares, Inc., Kaw Valley Bancshares, Inc., Kansas City January 22, 1987 Kansas City, Kansas Kansas City, Kansas U. B. Bancshares, Inc., United Bank, N.A., Cleveland January 20, 1987 Bucyrus, Ohio Bucyrus, Ohio UNB Corp., The Union National Bank of Philadelphia December 26, 1986 Mount Carmel, Pennsylvania Mount Carmel, Mount Carmel, Pennsylvania Union County Bancshares, Inc. The Anna National Bank, St. Louis January 5, 1987 Anna, Illinois Anna, Illinois United Bank Corporation of The First National Bank of New York January 21, 1987 New York, Amenia, Downsville, New York Amenia, New York Valley National Banc Holding Valley National Bank, Minneapolis January 21, 1987 Company, Apple Valley, Minnesota Apple Valley, Minnesota Verde Valley Bancorp, Inc., The Bank of Verde Valley (In San Francisco January 5, 1987 Cottonwood, Arizona Organization), Cottonwood, Arizona Vernois Bancshares, Inc., Vernois Bancorp, Inc., St. Louis January 23, 1987 Mt. Vernon, Illinois Mt. Vernon, Illinois Section 4 Nonbanking Reserve Effective Applicant Company/Activity Bank date Banc One Corporation, American Fletcher Mortgage Cleveland January 22, 1987 Columbus, Ohio Company, Inc., Indianapolis, Indiana American Fletcher Financial Services, Inc., Marion, Indiana Bankers Trust New York the corporate trust and stock New York December 23, 1986 Corporation, transfer business of Wells New York, New York Fargo Bank, N.A., San Francisco, California Barclays PLC, Wall Street Clearing Company, New York December 22, 1986 London, England New York, New York Barclays Bank PLC, London, England Barclays PLC, acquisition and servicing of New York December 19, 1986 London, England consumer finance receivables Barclays Bank PLC, and credit card receivables London, England Barclays USA Inc., Wilmington, Delaware Barclays U.S. Holdings, Inc., New York, New York Barclay s-AmericanCorporation, Charlotte, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 235 Section 4 Nonbanking Reserve Effective Applicant Company/Activity Bank date Citizens Financial Group, Inc., Gerding Insurance Agency, Inc., St. Louis January 26, 1987 New Haven, Missouri New Haven, Missouri Farmers and Merchants Peoples' Insurance Agency, Inc., Atlanta January 20, 1987 Bancorp, Inc., Dover, Tennessee Dover, Tennessee Fidelcor, Inc., Wye Mortgage Corporation, Philadelphia December 29, 1986 Philadelphia, Pennsylvania Lutherville, Maryland First Hawaiian, Inc., Crocker Financial Corporation, San Francisco December 24, 1986 Honolulu, Hawaii Ltd., Honolulu, Hawaii Harris Bankcorp, Inc., Harris Brokerage Services, Inc., Chicago January 9, 1987 Chicago, Illinois Chicago, Illinois Bankmont Financial Corp., New York, New York Bank of Montreal, Montreal, Canada Hartford National Corporation, Lighthouse Mortgage Company, Boston December 24, 1986 Hartford, Connecticut Providence, Rhode Island Michigan National Corporation, Morison International, Inc., Chicago December 30, 1986 Farmington Hills, Michigan Minneapolis, Minnesota Orange County Banking Retirement Accounts, Inc., Atlanta December 19, 1986 Corporation, Winter Park, Florida Ocoee, Florida Security Pacific Corporation, insurance premium finance assets San Francisco January 9, 1987 Los Angeles, California of Goldome Premium Financing, Inc., Bohemia, New York South Carolina National Confidential Credit Corporation, Richmond December 23, 1986 Corporation, Anderson, South Carolina Columbia, South Carolina Sovran Financial Corporation, Sovran Leasing Corporation, Richmond December 30, 1986 Norfolk, Virginia Richmond, Virginia Sovran Financial Corporation, Sovran Mortgage Corporation, Richmond December 30, 1986 Norfolk, Virginia Richmond, Virginia Texas Commerce Bancshares, providing investment or financial Dallas December 31, 1986 Inc., advice Houston, Texas U.S. Trust Corporation, Summit Management Company, New York December 22, 1986 New York, New York Inc., Los Angeles, California Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date The Bank of New York, North American Bancorp, Inc., New York January 16, 1987 New York, New York Garden City, New York NABAC Investment Services Corp., Garden City, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 Federal Reserve Bulletin • March 1987 Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Cheshire Financial Corporation, Cheshire County Savings Bank, Boston December 17, 1986 Keene, New Hampshire Keene, New Hampshire Colonial Mortgage, Inc., Amherst, New Hampshire The First National Agency at The First National Bank at St. Minneapolis January 26, 1987 St. James, Inc., James, St. James, Minnesota St. James, Minnesota operating a general insurance agency Maxwell Corporation, Ameribank Charleston, Richmond December 17, 1986 Northfork, West Virginia Charleston, West Virginia management consulting to banks ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date The Bank of Kansas City, The Merchants Bank, Kansas City December 24, 1986 Kansas City, Missouri Kansas City, Missouri The Bank of New York Long Island Trust Company, New York January 16, 1987 Company, Inc., N.A., New York, New York Garden City, New York Hardy County Bank, Inc., The Capon Valley Bank, Richmond January 9, 1987 Wardensville, West Virginia Wardensville, West Virginia Madison County Bank, acquire the assets and assume the Atlanta January 28, 1987 New Hope, Alabama liabilities of branches of Central Bank of the South, New Hope and Gurley, Alabama The Merchants Bank, Westport Bank, Kansas City December 24, 1986 Kansas City, Missouri Kansas City, Missouri Security Bank, Hawkeye Bank and Trust, Chicago January 9, 1987 Marshalltown, Iowa Eldora, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 237 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. Independent Insurance Agents of America, et al. v. Alfson v. Wilkinson, et al., No. Al-85-267 (D. N.D., Board of Governors, Nos. 86-1572, 1573, 1576 filed Oct. 8, 1985). (D.C. Cir., filed Oct. 24, 1986). First National Bancshares II v. Board of Governors, Securities Industry Association v. Board of Gover- No. 85-3702 (6th Cir., filed Sept. 4, 1985). nors, No. 86-2768 (D.D.C., filed Oct. 7, 1986). McHuin v. Volcker, et al., No. 85-2170 WARB (W.D. Independent Community Bankers Association of Okl., filed Aug. 29, 1985). South Dakota v. Board of Governors, No. 86-5373 Independent Community Bankers Associaton of South (8th Cir., filed Oct. 3, 1986). Dakota v. Board of Governors, No. 84-1496 (D.C. Jenkins v. Board of Governors, No. 86-1419 (D.C. Cir., filed Aug. 7, 1985). Cir., filed July 18, 1986). Urwyler, et al. v. Internal Revenue Service, et al., No. Securities Industry Association v. Board of Gover- 85-2877 (9th Cir., filed July 18, 1985). nors, No. 86-1412 (D.C. Cir., filed July 14, 1986). Wight, et al. v. Internal Revenue Service, et al., No. Adkins v. Board of Governors, No. 86-3853 (4th Cir., 85-2826 (9th Cir., filed July 12, 1985). filed May 14, 1986). Cook v. Spillman, et al., No. 86-1642 (9th Cir., filed Optical Coating Laboratory, Inc. v. United States, July 10, 1985). No. 288-86C (U.S. Claims Ct., filed May 6, 1986). Florida Bankers Association v. Board of Governors, CBC, Inc. v. Board of Governors, No. 86-1001 (10th No. 84-3883 and No. 84-3884 (11th Cir., filed Cir., filed Jan. 2, 1986). Feb. 15, 1985). Howe v. United States, et al., No. 86-889 (U.S. S.Ct. Florida Department of Banking v. Board of Goverfiled Dec. 6, 1985). nors, No. 84-3831 (11th Cir., filed Feb. 15, 1985), Myers, et al. v. Federal Reserve Board, No. 85-1427 and No. 84-3832 (11th Cir., filed Feb. 15, 1985). (D. Idaho, filed Nov. 18, 1985). Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filed Souser, et al. v. Volcker, et al., No. 85-C-2370, et al. Jan. 14, 1985). (D. Colo., filed Nov. 1, 1985). Brown v. United States Congress, et al., No. 84-2887- Podolak v. Volcker, No. C85-0456, et al. (D. Wyo., 6(IG) (S.D. Cal., filed Dec. 7, 1984). filed Oct. 28, 1985). Melcher v. Federal Open Market Committee, No. 84- Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa, 1335 (D.D.C., filed Apr. 30, 1984). filed Oct. 22, 1985). Florida Bankers Association, et al. v. Board of Gover- Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 (D. nors, Nos. 84-3269, 84-3270 (11th Cir., filed April Minn., filed Oct. 21, 1985). 20, 1984). Kurkowski v. Wilkinson, et al., No. CV-85-0-916 (D. Securities Industry Association v. Board of Gover- Neb., filed Oct. 16, 1985). nors, No. 86-5089, et al. (D.C. Cir., filed Oct. 24., Jensen v. Wilkinson, et al., No. 85-4436-S, et al. (D. 1980) Kan., filed Oct. 10, 1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks MONEY STOCK AND BANK CREDIT A22 Gross demand deposits—individuals, partnerships, and corporations A3 Reserves, money stock, liquid assets, and debt measures A4 Reserves of depository institutions, Reserve FINANCIAL MARKETS Bank credit A5 Reserves and borrowings—Depository A23 Commercial paper and bankers dollar institutions acceptances outstanding A5 Selected borrowings in immediately available A23 Prime rate charged by banks on short-term funds—Large member banks business loans A24 Interest rates—money and capital markets A25 Stock market—Selected statistics POLICY INSTRUMENTS A26 Selected financial institutions—Selected assets and liabilities A6 Federal Reserve Bank interest rates A7 Reserve requirements of depository institutions A8 Maximum interest rates payable on time and FEDERAL FINANCE savings deposits at federally insured institutions A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation FEDERAL RESERVE BANKS A30 Gross public debt of U.S. Treasury—Types and ownership A10 Condition and Federal Reserve note statements A31 U.S. government securities dealers— All Maturity distribution of loan and security Transactions holdings A32 U.S. government securities dealers—Positions and financing A33 Federal and federally sponsored credit MONETARY AND CREDIT AGGREGATES agencies—Debt outstanding A12 Aggregate reserves of depository institutions and monetary base SECURITIES MARKETS AND A13 Money stock, liquid assets, and debt measures CORPORATE FINANCE A15 Bank debits and deposit turnover A16 Loans and securities—All commercial banks A34 New security issues—State and local governments and corporations A35 Open-end investment companies—Net sales and COMMERCIAL BANKING INSTITUTIONS asset position 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

A63 Federal Reserve Bulletin • March 1987 A36 Nonfinancial corporations—Assets and A54 Foreign official assets held at Federal Reserve liabilities Banks A36 Total nonfarm business expenditures on new A55 Foreign branches of U.S. banks—Balance sheet plant and equipment data A37 Domestic finance companies—Assets and A57 Selected U.S. liabilities to foreign official liabilities and business credit institutions REAL ESTATE REPORTED BY BANKS IN THE UNITED STATES A38 Mortgage markets A57 Liabilities to and claims on foreigners A39 Mortgage debt outstanding A58 Liabilities to foreigners A60 Banks' own claims on foreigners A61 Banks' own and domestic customers' claims on CONSUMER INSTALLMENT CREDIT foreigners A61 Banks' own claims on unaffiliated foreigners A40 Total outstanding and net change A62 Claims on foreign countries—Combined A41 Terms domestic offices and foreign branches FLOW OF FUNDS REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit A63 Liabilities to unaffiliated foreigners markets A64 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS A65 Foreign transactions in securities SELECTED MEASURES A66 Marketable U.S. Treasury bonds and notes— Foreign transactions A44 Nonfinancial business activity—Selected measures A45 Labor force, employment, and unemployment INTEREST AND EXCHANGE RATES A46 Output, capacity, and capacity utilization A47 Industrial production—Indexes and gross value A67 Discount rates of foreign central banks A49 Housing and construction A67 Foreign short-term interest rates A50 Consumer and producer prices A68 Foreign exchange rates A51 Gross national product and income A52 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases, and Special International Statistics Tables SUMMARY STATISTICS SPECIAL TABLES A53 U.S. international transactions—Summary A70 Assets and liabilities of foreign banks, A54 U.S. foreign trade September 30, 1986 A54 U.S. reserve assets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1986 1986 Q1 Q2 Q3 Q4 Aug. Sept. Oct. Nov.' Dec. Reserves of depository institutions2 1 Total 13.1 17.8 22.9 21.5 19.7 11.5 13.7 32.6 40.5 2 Required 12.3 19.8 23.9 19.9 24.2 12.0 13.4 27.7 32.3 3 Nonborrowed 19.1 17.6 23.2 22.4 16.8 8.4 17.9 35.2 39.3 4 Monetary base3 8.6 8.8 9.9 10.2 12.0 5.4 9.4 12.8 14.6 Concepts of money, liquid assets, and debt4 5 Ml 7.7 15.8 17.3 17.2 20.6 9.8' 13.8r 21.0 28.4 6 M2 4.3 10.5 11.1 9.2 11.2 7.3 10.7' 7.0 10.0 7 M3 7.6 9.0 10.2 7.6 9.1 8.8 6.6r 5.9 9.3 8 L 8.4 7.0 8.5 n.a. 8.3 8.4r 6.8' 8.8 n.a. 9 Debt 15.5r 10.3' 12.0 11.5 12.7r 11.9^ 9.3' 12.1 n.a. Nontransaction components 10 In M25 3.3 8.7 9.1 6.4 8.0 6.4 9.6 2.3 3.5 11 In M3 only6 20.6 3.4 6.3 1.2 .9 14.9' -9.6' 1.2 6.4 Time and savings deposits Commercial banks 12 Savings7 1.9 11.8 25.5 38.5 30.6 36.0 40.9' 38.7 33.5 13 Small-denomination time8 5.3 -3.1 -9.0 -12.1 -12.6 -10.9 -15.8 -12.4 -3.6 14 Large-denomination time9'10 18.5 -8.8 -1.1' .0 7.7 -2.6 -10.2 9.0 10.2 Thrift institutions 15 Savings7 3.1 20.9 23.6 23.7 18.2 16.1 27.1' 27.7 22.0 16 Small-denomination time 6.6 2.6 -3.8 -7.7 -6.0 -6.0 -11.3 -7.5 -3.2 17 Large-denomination time9 10.0 11.0 2.7 -8.9 2.2 -2.2 -13.0 -16.1 -7.4 Debt components4 18 Federal 17.0 11.6 14.5 12.6 8.8 11.4 9.9 16.1 n.a. 19 Nonfederal 15.0 9.8 11.2' 11.2 13.9' 12.(K 9.1' 10.9 n.a. 20 Total loans and securities at commercial banks11 12.7 4.1 10.5 9.1 13.8 13.0 2.2 8.9 17.6 1. Unless otherwise noted, rates of change are calculated from average commercial banks, money market funds (general purpose and broker/dealer), amounts outstanding in preceding month or quarter. foreign governments and commercial banks, and the U.S. government. Also 2. Figures incorporate adjustments for discontinuities associated with the subtracted is a consolidation adjustment that represents the estimated amount of implementation of the Monetary Control Act and other regulatory changes to demand deposits and vault cash held by thrift institutions to service their time and reserve requirements. To adjust for discontinuities due to changes in reserve savings deposits. requirements on reservable nondeposit liabilities, the sum of such required M3: M2 plus large-denomination time deposits and term RP liabilities (in reserves is subtracted from the actual series. Similarly, in adjusting for discontin- amounts of $100,000 or more) issued by commercial banks and thrift institutions, uities in the monetary base, required clearing balances and adjustments to term Eurodollars held by U.S. residents at foreign branches of U.S. banks compensate for float also are subtracted from the actual series. worldwide and at all banking offices in the United Kingdom and Canada, and 3. The monetary base not adjusted for discontinuities consists of total balances in both taxable and tax-exempt, institution-only money market mutual reserves plus required clearing balances and adjustments to compensate for float funds. Excludes amounts held by depository institutions, the U.S. government, at Federal 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 • March 1987 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 1986 1986 Oct. Nov. Dec. Nov. 19 Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 214,197 219,190 226,527 220,660 218,971 221,438 223,539 224,476 227,065 232,826 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 188,195 193,043 199,939 193,626 194,251 195,514 198,635 198,668 200,640 203,718 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 187,944 192,284 197,057 192,005 193,459 193,783 198,033 197,512 197,069 197,175 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 251 759 2,882 1,621 792 1,731 602 1,156 3,571 6,543 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,030 7,968 8,129 7,961 7,928 8,184 7,870 7,956 8,064 8,604 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,975 7,867 7,829 7,829 7,829 7,829 7,829 7,829 7,829 7,829 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 55 101 300 132 99 355 41 127 235 775 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 779 802 829 1,103 639 581 383 644 554 1,818 1111100000 FFFFFllllloooooaaaaattttt 560 974 1,302 1,416 587 1,290 908 1,094 1,413 1,764 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 16,633 16,403 16,328 16,555 15,566 15,869 15,742 16,113 16,395 16,922 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt.................... 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 17,465 17,516 17,541 17,517 17,531 17,518 17,528 17,538 17,548 17,558 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 202,301 205,069 209,228 205,566 205,493 207,136 207,899 208,350 209,759 211,636 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 492 474 453 475 468 459 455 453 453 450 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 3,305 3,117 3,658 3,696 2,474 2,606 2,794 3,524 3,391 5,340 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 215 233 232 204 224 255 205 266 211 237 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,971 2,064 2,230 1,980 2,044 2,379 2,195 2,421 2,273 2,219 2222200000 OOOOOttttthhhhheeeeerrrrr 516 522 477 510 428 544 425 539 390 458 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,302 6,345 6,404 6,322 6,275 6,428 6,337 6,406 6,411 6,425 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 32,663 34,984 37,488 35,527 35,198 35,252 36,860 36,158 37,828 39,723 End-of-month figures Wednesday figures 1986 1986 Oct. Nov. Dec. Nov. 19 Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 215,993 221,673 241,760 226,011 219,141 222,438 224,602 230,336 228,775 241,760 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 189,995 196,293 211,316 196,369 193.261 195,302 197,871 200,631 200,491 211,316 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 189,995 194,876 197,625 191,850 191,627 192,721 197,871 197,418 196,742 197,625 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 1,417 13,691 4,519 1.634 2,581 0 3,213 3,749 13,691 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 7,954 8,177 10,143 8,087 8,215 8,337 7,829 8,234 8,127 10,143 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,954 7,829 7,829 7,829 7,829 7,829 7,829 7,829 7,829 7,829 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 0 348 2,314 258 386 508 0 405 298 2,314 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 806 557 1,565 3,980 481 769 402 1,965 468 1,565 3333322222 FFFFFllllloooooaaaaattttt 441 748 1,261 1.841 1,391 2,110 2,421 2,974 2,619 1,261 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 16,797 15,898 17,475 15,734 15,793 15,920 16,079 16,532 17,070 17,475 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt ............... 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 17,488 17,543 17,567 17,529 17,543 17,527 17,537 17,547 17,557 17,567 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 202,517 206,904 211,995 205,415 206,786 207,757 208,190 208,754 211,051 211,995 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 485 459 447 469 459 460 453 453 450 447 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 2,491 2,529 7,588 2,850 2,591 2,313 3,875 4,536 3,681 7,588 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 303 225 287 174 337 250 247 345 177 287 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,744 1,744 1,812 1,727 1,802 1,802 1,804 1,805 1,812 1,812 4444422222 OOOOOttttthhhhheeeeerrrrr 479 425 917 486 430 437 466 471 375 917 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,342 6,480 6,088 6,223 6,094 6,311 6,263 6,257 6,415 6,088 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 35,222 36,552 46,295 42,298 34,287 36,737 36,944 41,364 38,473 46,295 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 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 1986 Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. 1 Reserve balances with Reserve Banks' 21,138 21,738 27,620 28,279 29,499 30,313 30,165 31,922 32,947 34,803 2 Total vault cash2 20,755 22,316 22,956 22,474 22,805 23,098 23,451 23,384 23,753 23,543 3 Vault cash used to satisfy reserve requirements3 . 17,908 18,958 20,522 20,140 20,439 20,716 21,112 21,267 21,676 21,595 4 Surplus vault cash4 2,847 3,358 2,434 2,334 2,366 2,381 2,339 2,117 2,078 1,947 Total reserves5 38,894 40,696 48,142 48,419 49,938 51,029 51,277 53,189 54,623 56,399 6 Required reserves 38,333 39,843 47,085 47,581 49,007 50,118 50,538 52,463 53,877 55,421 7 Excess reserve balances at Reserve Banks6 561 853 1,058 838 931 910 740 726 746 978 8 Total borrowings at Reserve Banks 774 3,186 1,318 876 803 741 872 1,008 841 752 9 Seasonal borrowings at Reserve Banks 96 113 56 94 108 116 144 137 99 70 10 Extended credit at Reserve Banks7 2 2,604 499 584 531 378 465 570 497 418 Biweekly averages of daily figures for weeks ending 1986 and 1987 Sept. 24 Oct. 8 Oct. 22 Nov. 5 Nov. 19 Dec. 3' Dec. 17 Dec. 31 Jan. 14p Jan. 28p 11 Reserve balances with Reserve Banks1 32,103 32,156 33,007 33,557 34,945 35,189 36,527r 38,659 38,764 35,258 12 Total vault cash2 23,623 24,015 23,955 23,208 23,405 23,871 23,485 24,729 24,583 25,028 13 Vault cash used to satisfy reserve requirements3 . 21,567 21,790 21,914 21,204 21,570 21,806 21,725 22,758 22,805 22,958 14 Surplus vault cash4 2,056 2,225 2,041 2,004 1,835 2,065 1,733 1,971 1,778 2,071 15 Total reserves5 53,670 53,946 54,921 54,761 56,515 56,995 58,251' 61,417 61,569 58,215 16 Required reserves 52,964 50,287 54,170 53,947 55,599 55,865 57,51 lr 59,369 60,663 57,045 17 Excess reserve balances at Reserve Banks6 706 660 751 814 916 1,130 740' 2,048 906 1,170 18 Total borrowings at Reserve Banks 981 902 771 899 811 610 514 1,186 505 689 19 Seasonal borrowings at Reserve Banks 135 125 88 93 68 63 34 37 28 36 20 Extended credit at Reserve Banks7 569 538 488 476 437 368 310 282 215 227 1. Excludes required clearing balances and adjustments to compensate for computation period by institutions having required reserve balances at Federal float. Reserve Banks plus the amount of vault cash equal to required reserves during the 2. Dates refer to the maintenance periods in which the vault cash can be used to maintenance period at institutions having no required reserve balances. satisfy reserve requirements. Under contemporaneous reserve requirements, 6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy maintenance periods end 30 days after the lagged computation periods in which reserve requirements less required reserves. the balances are held. 7. Extended credit consists of borrowing at the discount window under the 3. Equal to all vault cash held during the lagged computation period by terms and conditions established for the extended credit program to help institutions having required reserve balances at Federal Reserve Banks plus the depository institutions deal with sustained liquidity pressures. Because there is amount of vault cash equal to required reserves during the maintenance period at not the same need to repay such borrowing promptly as there is with traditional institutions having no required reserve balances. short-term adjustment credit, the money market impact of extended credit is 4. Total vault cash at institutions having no required reserve balances less the similar to that of nonborrowed reserves. amount of vault cash equal to their required reserves during the maintenance 8. Before February 1984, data are prorated monthly averages of weekly period. averages; beginning February 1984, data are prorated monthly averages of 5. Total reserves not adjusted for discontinuities consist of reserve balances biweekly averages. with Federal Reserve Banks, which exclude required clearing balances and NOTE. These data also appear in the Board's H.3 (502) release. For address, see adjustments to compensate for float, plus vault cash used to satisfy reserve inside front cover. requirements. Such vault cash consists of all vault cash held during the lagged 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1986 and 1987 week ending Monday BByy mmaattuurriittyy aanndd ssoouurrccee Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 75,422' 80,295' 84,561' 81,894' 80,932 78,638 91,166 84,217 81,808 2 For all other maturities 8,448 9,088 7,728 7,420' 7,790 9,148 8,297 7,925 8,815 From other depository institutions, foreign banks and foreign official institutions, and United States government agencies 3 For one day or under continuing contract 38,728' 35,176' 39,397' 38,06c 34,382 31,199 33,292 37,498 35,356 4 For all other maturities 4,941 5,702 5,236 5,199 6,126 7,026 5,940 6,636 7,288 Repurchase agreements on United States government and federal agency securities in immediately available funds Brokers and nonbank dealers in securities 5 For one day or under continuing contract 11,181 9,276 11,220 10,047' 9,798 10,016 12,500 12,987 11,724 6 For all other maturities 10.396 11,236 9.039 9,600' 9,099 7,562 5,911 7,682 9,695 All other customers 7 For one day or under continuing contract 29,541 28,018 29,046 29,200' 29.384 26,786 29,064 30,806 29,128 8 For all other maturities 10,711 14,211 10,426 10,367' 11,233 14,980 11,575 10,257 10,098 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 27,235 30,473 26,230 26,368' 28,024 30,563 33,044 33,777 30,722 10 To all other specified customers2 10,070 10,631 9,916 10,078' 9,076 10,205 10,480 10,424 10,271 Digitized for FRASER 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. 2. Brokers and nonbank dealers in securities; other depository institutions; http://fraser.stlouisfed.org/ foreign banks and official institutions; and United States government agencies. Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • March 1987 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit2 SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt11 First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 1/30/87 date rate 1/30/87 rate 1/30/87 rate 1/30/87 rate Boston 5Vi 8/21/86 6 51/2 6 6 Vi 7 IVI 8/21/86 New York 8/21/86 8/21/86 Philadelphia 8/22/86 8/22/86 Cleveland 8/21/86 8/21/86 Richmond 8/21/86 8/21/86 Atlanta 8/21/86 8/21/86 Chicago 8/21/86 8/21/86 St. Louis 8/22/86 8/22/86 Minneapolis 8/21/86 8/21/86 Kansas City .... 8/21/86 8/21/86 D Sa a n l la F s rancisco... 5l/i 8 8 / / 2 2 1 1 / / 8 8 6 6 6 SVi 6 m 7 7'/2 8 8 / / 2 2 1 1 / / 8 8 6 6 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 da A le l v l e F l) . — R. Ba of n k Effective date A le l v l e F l) . — R. B o a f n k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1973 71/2 m 1978-— Aug. 71 73/4 73/4 11998822—— JJuullyy 20 11V^—12 11 Vi 1974— Apr. 25 7^-8 8 Sept. 77 8 8 23 UVi im 3 0 8 8 Oct. 16 8-8 Vz m AAuugg.. 2 11-11 Vi 11 Dec. 9 73/»-8 7J/4 70 . m m 3 11 11 16 73/4 73/4 Nov. 1 . m-9Vi 9l/2 16 10Vi 10V4 9l/2 9>/2 27 10-101/2 10 1975— Jan. 6 7'/4-73/4 73/4 30 10 10 10 71/4-73/4 71/4 1979--July 70 10 10 Oct. 12 9^-10 91/2 24 71/4 71/4 AAuugg.. 17 10-10!/i 10'/2 13 9 >/2 91/2 Feb. 5 6V4-7V4 6V4 70 lOVi 10V2 Nov. 22 9-9 Vi 9 7 63/4 6'/4 SSeepptt.. 19 , 101/2-1 1 11 26 9 9 Mar. 10 6'/4-63/4 6'/4 71 11 11 Dec. 14 81/2-9 9 14 6'/4 6'/4 Oct. 8 11-12 12 15 8'/2-9 m May 16 6-6!/4 6 10 . 12 12 17 m 8Vi 23 6 6 1980--Feb. 15 12-13 13 1984— Apr. 9 8'/>-9 9 1976— Jan. 19 51/2-6 5!/2 19 13 13 13 9 9 23 51/2 51/! MMaayy 79 12-13 13 Nov. 21 8Vi—9 Sl/2 Nov. 22 514-5 Vi 51/4 30 12 12 26 8Vi 8'/i 26 51/4 51/4 June 13 11-12 11 Dec. 24 8 8 16 11 11 1977— Aug. 30 5\/4-53/4 51/4 JJuullyy 78 10-11 10 11998855—— MMaayy 20 7Vi-8 IVi 3 1 5'/4-53/4 53/4 79 10 10 24 m IVi Sept. 2 53/4 53/4 Sept. 76 11 11 Oct. 26 6 6 Nov. 17 12 12 1986— Mar. 7 i~m 7 Dec. 5 12-13 13 10 1 7 1978— Jan. 9 6-6'/2 6>/2 8 13 13 Apr. 21 6V4-7 6'/> 20 6Vi 6 Vi 23 6V2 6Vi May 11 6^-7 7 1981-—— MMaayy 5 13-14 14 July 11 6 6 12 7 7 8 . 14 14 AAuugg.. 21 5 i/2-6 SVi July 3 7-71/4 71/4 Nov. 7 . 13-14 13 22 5Vi 5>/2 July 10 7'/4 71/4 6 . 13 13 Dec. 4 12 12 In effect Jan 30, 1987 5Vi 5Vi 1. After May 19, 1986, the highest rate within the structure of discount rates rate under this structure is applied may be shortened. See section 201.3(b)(2) of may be charged on adjustment credit loans of unusual size that result from a major Regulation A. operating problem at the borrower's facility. 3. Rates for short-term adjustment credit. For description and earlier data see A temporary simplified seasonal program was established on Mar. 8, 1985, and the following publications of the Board of Governors: Banking and Monetary the interest rate was a fixed rate Vi percent above the rate on adjustment credit. Statistics, 1914-1941, and 1941-1970; Annual Statistical Digest, 1970-1979, 1980, The program was re-established on Feb. 18, 1986 and again on Jan. 28, 1987; the 1981, and 1982. rate may be either the same as that for adjustment credit or a fixed rate l/i percent In 1980 and 1981, the Federal Reserve applied a surcharge to short-term higher. adjustment credit borrowings by institutions with deposits of $500 million or more 2. Applicable to advances when exceptional circumstances or practices involve that had borrowed in successive weeks or in more than 4 weeks in a calendar only a particular depository institution and to advances when an institution is quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, under sustained liquidity pressures. As an alternative, for loans outstanding for 1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was more than 150 days, a Federal Reserve Bank may charge a flexible rate that takes adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and into account rates on market sources of funds, but in no case will the rate charged to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective be less than the basic rate plus one percentage point. Where credit provided to a Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for particular depository institution is anticipated to be outstanding for an unusually applying the surcharge was changed from a calendar quarter to a moving 13-week prolonged period and in relatively large amounts, the time period in which each 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 TTyypp dd ee ee pp oo oo ff ss ii dd tt ee ii pp nn oo ttee ssii rr tt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo ooff ss ii dd tt ee ii pp nn oo ttee ss rr ii vv tt,, aa ll aa 55 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand2 Net transaction accounts1 7 12/30/76 $0-$36.7 million 3 12/30/86 9 l/l 12/30/76 1122 1122//3300//8866 $10 million-$100 million 11% 12/30/76 $100 million-$400 million 12% 12/30/76 Nonpersonal time deposits9 Over $400 million 16V4 12/30/76 By original maturity Less than 1 Vi years 3 10/6/83 Time and savings2-3 1 '/2 years or more 0 10/6/83 SSaavviinnggss 3 3/16/67 Eurocurrency liabilities Time4 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Vi 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 was established at $2.4 requirements for reserve city banks and for other banks. Reserve cities were million. Effective with the reserve computation period beginning Dec. 31, 1985, designated under a criterion adopted effective Nov. 9, 1972, by which a bank the amount of the exemption was established at $2.6 million. Effective Dec. 30, having net demand deposits of more than $400 million was considered to have the 1986, the amount of the exemption is $2.9 million. In determining the reserve character of business of a reserve city bank. The presence of the head office of requirements of a depository institution, the exemption shall apply in the such a bank constituted designation of that place as a reserve city. Cities in which following order: (1) nonpersonal money market deposit accounts (MMDAs) there were Federal Reserve Banks or branches were also reserve cities. Any described in 12 CFR section 204.2 (d)(2); (2) net NOW accounts (NOW accounts banks having net demand deposits of $400 million or less were considered to have less allowable deductions); (3) net other transaction accounts; and (4) nonpersonal the character of business of banks outside of reserve cities and were permitted to time deposits or Eurocurrency liabilities starting with those with the highest maintain reserves at ratios set for banks not in reserve cities. reserve ratio. With respect to NOW accounts and other transaction accounts, the Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances exemption applies only to such accounts that would be subject to a 3 percent due from domestic banks to their foreign branches and on deposits that foreign reserve requirement. branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent 6. For nonmember banks and thrift institutions that were not members of the respectively. The Regulation D reserve requirement of borrowings from unrelated Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, banks abroad was also reduced to zero from 4 percent. 1987. For banks that were members on or after July 1, 1979, but withdrew on or Effective with the reserve computation period beginning Nov. 16, 1978, before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends domestic deposits of Edge corporations were subject to the same reserve on Oct. 24, 1985. For existing member banks the phase-in period of about three requirements as deposits of member banks. years was completed on Feb. 2, 1984. All new institutions will have a two-year 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as phase-in beginning with the date that they open for business, except for those Christmas and vacation club accounts were subject to the same requirements as institutions that have total reservable liabilities of $50 million or more. savings deposits. 7. Transaction accounts include all deposits on which the account holder is The average reserve requirement on savings and other time deposits before permitted to make withdrawals by negotiable or transferable instruments, payimplementation of the Monetary Control Act had to be at least 3 percent, the ment orders of withdrawal, and telephone and preauthorized transfers (in excess minimum specified by law. of three per month) for the purpose of making payments to third persons or others. 4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent However, MMDAs and similar accounts offered by institutions not subject to the was imposed on large time deposits of $100,000 or more, obligations of affiliates, rules that permit no more than six preauthorized, automatic, or other transfers per and ineligible acceptances. This supplementary requirement was eliminated with month of which no more than three can be checks—are not transaction accounts the maintenance period beginning July 24, 1980. (such accounts are savings deposits subject to time deposit reserve requirements.) Effective with the reserve maintenance period beginning Oct. 25, 1979, a 8. The Monetary Control Act of 1980 requires that the amount of transaction marginal reserve requirement of 8 percent was added to managed liabilities in accounts against which the 3 percent reserve requirement applies be modified excess of a base amount. This marginal requirement was increased to 10 percent annually by 80 percent of the percentage increase in transaction accounts held by beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and all depository institutions determined as of June 30 each year. Effective Dec. 31, was eliminated beginning July 24, 1980. Managed liabilities are defined as iarge 1981, the amount was increased accordingly from $25 million to $26 million; time deposits, Eurodollar borrowings, repurchase agreements against U.S. effective Dec. 30, 1982, to $26.3 million; effective Dec. 29, 1983, to $28.9 million; government and federal agency securities, federal funds borrowings from non- effective Jan. 1, 1985, to $29.8 million; and effective Dec. 31, 1985, to $31.7 member institutions, and certain other obligations. In general, the base for the million. Effective Dec. 30, 1986, the amount was increased to $36.7 million. marginal reserve requirement was originally the greater of (a) $100 million or (b) 9. In general, nonpersonal time deposits are time deposits, including savings the average amount of the managed liabilities held by a member bank, Edge deposits, that are not transaction accounts and in which a beneficial interest is corporation, or family of U.S. branches and agencies of a foreign bank for the two held by a depositor that is not a natural person. Also included are certain reserve computation periods ending Sept. 26, 1979. For the computation period transferable time deposits held by natural persons, and certain obligations issued beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease to depository institution offices located outside the United States. For details, see in an institution's U.S. office gross loans to foreigners and gross balances due section 204.2 of Regulation D. from foreign offices of other institutions between the base period (Sept. 13-26, 1979) and the week ending Mar. 12, 1980, whichever was greater. For the NOTE. Required reserves must be held in the form of deposits with Federal computation period beginning May 29, 1980, the base was increased by lxh Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a percent above the base used to calculate the marginal reserve in the statement Federal Reserve Bank indirectly on a pass-through basis with certain approved week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was institutions. reduced to the extent that foreign loans and balances declined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • March 1987 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 a k n s a ( s t s h o r c if i t a t i i n o s n t s it u a t n io d n s)1 In effect Jan. 31, 1987 In effect Jan. 31, 1987 TTTyyypppeee ooofff dddeeepppooosssiiittt Percent Effective date Percent Effective date 2 3 1 N M Sa e o v g n i o n e t y g ia s b m le a rk o e rd 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 ( ( ( 2 3 4 ) ) ) 12 4 / 1 1 / / 1 4 1 / / / 8 8 8 6 2 6 < ( ( 3 4 2 ) ) ) 12 4 / 1 1 / / 1 4 1 / / / 8 8 8 6 2 6 4 7 T im 31 e da a y c s c ounts (5) 1/1/86 (5) 9/1/86 1100//11//8833 1100//11//8833 1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable 4. Effective Dec. 14, 1982, depository institutions are authorized to offer a new by commercial banks and thrift institutions on various categories of deposits were account with a required initial balance of $2,500 and an average maintenance removed. For information regarding previous interest rate ceilings on all catego- balance of $2,500 not subject to interest rate restrictions. Effective Jan. 1, 1985, ries of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the the minimum denomination and average balance maintenance requirements was Federal Home Loan Bank Board Journal, and the Annual Report of the Federal lowered to $1,000. Effective Jan. 1, 1986, the minimum denomination and average Deposit Insurance Corporation. balance maintenance requirements were removed. No minimum maturity period 2. Effective Apr. 1, 1986, the interest rate ceiling on savings deposits was is required for this account, but depository institutions must reserve the right to removed. Before Apr. 1, 1986, savings deposits were subject to an interest rate require seven days, notice before withdrawals. ceiling of 5Vi percent. 5. Before Jan. 1, 1986, deposits of less than $1,000 were subject to an interest 3. Before Jan. 1, 1986, NOW accounts with minimum denomination require- rate ceiling of 5'/i percent. Deposits of less than $1,000 issued to governmental ments of less than $1,000 were subject to an interest rate ceiling of 5lA percent. units were subject to an interest rate ceiling of 8 percent. Effective Jan. 1, 1986, NOW accounts with minimum required denominations of $1,000 or more and the minimum denomination requirement was removed. IRA/Keough (HR10) Plan accounts were not subject to interest rate ceilings. Effective Jan. 1, 1986, 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 1986 TTyyppee ooff ttrraannssaaccttiioonn 11998833 11998844 11998855 May June July Aug. Sept. Oct. Nov. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 18,888 20,036 22,214 3,1% 1,402 867 2,940 861 928 3,318 2 Gross sales 3,420 8,557 4,118 0 0 0 0 0 0 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 2,400 7,700 3,500 0 0 0 0 0 0 0 Others within 1 year 5 Gross purchases 484 1,126 1,349 0 0 0 0 0 0 190 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shift 18,887 16,354 19,763 1,847 1,152 579 1,715 1,053 974 2,974 8 Exchange -16,553 -20,840 -17,717 -1,819 -1,957 -1,253 -4,087 -1,892 -529 -1,810 9 Redemptions 87 0 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 1,896 1,638 2,185 0 0 0 0 0 0 893 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -15,533 -13,709 -17,459 -1,532 -1,152 -386 -1,194 -1,053 -969 -2,414 13 Exchange 11,641 16,039 13,853 1,019 1,957 1,253 2,587 1,892 529 1,510 5 to 10 years 14 Gross purchases 890 536 458 0 0 0 0 0 0 236 15 Gross sales 0 300 100 0 0 0 0 0 0 0 16 Maturity shift -2,450 -2,371 -1,857 -315 0 -193 -520 0 -5 -560 17 Exchange 2,950 2,750 2,184 500 0 0 1,000 0 0 200 Over 10 years 18 Gross purchases 383 441 293 0 0 0 0 0 0 158 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -904 -275 -447 0 0 0 0 0 0 0 21 Exchange 1,962 2,052 1,679 300 0 0 500 0 0 100 All maturities 22 Gross purchases 22,540 23,776 26,499 3,196 1,402 867 2,940 861 928 4,795 23 Gross sales 3,420 8,857 4,218 0 0 0 0 0 0 0 24 Redemptions 2,487 7,700 3,500 0 0 0 0 0 0 0 Matched transactions 25 Gross sales 578,591 808,986 866,175 62,663 80,219 70,928 60,460 73,179 77,262 60,146 26 Gross purchases 576,908 810,432 865,968 67,147 80,674 69,659 60,011 70,817 81,892 60,232 Repurchase agreements 27 Gross purchases 105,971 127,933 113344,,225533 12,395 5,640 1188,,665577 0 14,717 5,670 16,888 28 Gross sales 108,291 127,690 132,351 19,917 5,640 18,657 0 8,403 11,984 15,471 29 Net change in U.S. government securities 12,631 8,908 20,477 158 1,857 -403 2,491 4,814 -756 6,298 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 292 256 162 50 0 * 90 * 93 125 Repurchase agreements 33 Gross purchases 8,833 11,509 2222,,118833 3,135 1,691 4,984 0 22,,667788 952 1,622 34 Gross sales 9,213 11,328 20,877 4,567 1,691 4,984 0 869 2,761 1,274 35 Net change in federal agency obligations -672 -76 1,144 -1,482 0 * -90 1,809 -1,902 223 BANKERS ACCEPTANCES 36 Repurchase agreements, net -1,062 -418 0 0 0 0 0 0 0 0 37 Total net change in System Open Market Account 10,897 8,414 21,621 -1,324 1,857 -403 2,401 6,623 -2,658 6,522 NOTE. Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • March 1987 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAccccoouunntt 1986 1986 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 Oct. Nov. Dec. Consolidated condition statement ASSETS 1 Gold certificate account 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 2 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 3 Coin 493 502 510 505 485 508 507 485 Loans 4 To depository institutions 769 402 1,965 468 1,565 806 557 1,565 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 0 0 00 00 00 00 Federal agency obligations 7 Bought outright 7,829 7,829 7,829 7,829 7,829 7,954 7,829 7,829 8 Held under repurchase agreements 508 0 405 298 2,314 0 348 2,314 U.S. government securities Bought outright 9 Bills 98,871 104,021 103,568 102,892 103,775 97,622 101,026 103,775 10 Notes 68,126 68,126 68,126 68,126 68,126 66,597 68,126 68,126 11 Bonds 25,724 25,724 25,724 25,724 25,724 25,776 25,724 25,724 12 Total bought outright1 192,721 197,871 197,418 196,742 197,625 189,995 194,876 197,625 13 Held under repurchase agreements 2,581 0 3,213 3,749 13,691 0 1,417 13,691 14 Total U.S. government securities 195,302 197,871 200,631 200,491 211,316 189,995 196,293 211,316 15 Total loans and securities 204,408 206,102 210,830 209,086 223,024 198,755 205,027 223,024 16 Items in process of collection 8,896 8,378 10,627 10,418 8,938 6,104 4,721 8,938 17 Bank premises 653 656 656 659 661 649 654 661 Other assets 18 Denominated in foreign currencies2 9,140 9,207 9,218 9,241 9,475 9,133 9,179 9,475 19 All other3 6,127 6,216 6,658 7,170 7,339 7,015 6,065 7,339 20 Total assets 245,819 247,163 254,601 253,181 266,024 238,266 242,255 266,024 LIABILITIES 21 Federal Reserve notes 191,183 191,607 192,170 194,449 195,360 186,022 190,327 195,360 Deposits 22 To depository institutions 38,539 38,748 43,169 40,285 48,107 36,966 38,296 48,107 23 U.S. Treasury—General account 2,313 3,875 4,536 3,681 7,588 2,491 2,529 7,588 24 Foreign Official accounts 250 247 345 177 287 303 225 287 25 Other 437 466 471 375 917 479 425 917 26 Total deposits 41,539 43,336 48,521 44,518 56,899 40,239 41,475 56,899 27 Deferred credit items 6,786 5,957 7,653 7,799 7,677 5,663 3,973 7,677 28 Other liabilities and accrued dividends4 2,203 2,230 2,231 2,379 2,340 2,275 2,242 2,340 29 Total liabilities 241,711 243,130 250,575 249,145 262,276 234,199 238,017 262,276 CAPITAL ACCOUNTS 30 Capital paid in 1,861 1,859 1,863 1,866 1,874 1,854 1,860 1,874 31 Surplus 1,781 1,781 1,781 1,781 1,874 1,781 1,781 1,874 32 Other capital accounts 466 393 382 389 0 432 597 0 33 Total liabilities and capital accounts 245,819 247,163 254,601 253,181 266,024 238,266 242,255 266,024 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 165,896 165,465 164,764 162,582 162,381 164,020 164,411 162,381 Federal Reserve note statement 35 Federal Reserve notes outstanding 231,765 232,953 232,883 232,166 231,603 227,605 231,281 231,603 36 LESS: Held by bank 40,582 41,346 40,713 37,717 36,243 41,583 40,954 36,243 37 Federal Reserve notes, net 191,183 191,607 192,170 194,449 195,360 186,022 190,327 195,360 Collateral held against notes net: 38 Gold certificate account 11,084 11,084 11,084 11,084 11,084 11,084 11,084 11,084 39 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. government and agency securities 175,081 175,505 176,068 178,347 179,258 169,920 174,225 179,258 42 Total collateral 191,183 191,607 192,170 194,449 195,360 186,022 190,327 195,360 1. Includes securities loaned—fully guaranteed by U.S. government securities 4. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes (if any) securities sold and market exchange rates of foreign-exchange commitments. scheduled to be bought back under matched sale-purchase transactions. NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For 2. Assets shown in this line are revalued monthly at market exchange rates. address, see inside front cover. 3. Includes special investment account at Chicago of Treasury bills maturing within 90 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1986 1986 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 Oct. 31 Nov. 28 Dec. 31 1 Loans—Total 769 402 1,965 468 1,565 806 557 1,565 2. Within 15 days 759 390 1,960 463 1,553 783 545 1,553 3 16 days to 90 days 10 12 5 5 12 23 12 12 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 195,302 197,871 200,631 200,491 211,316 189,995 196,293 211,316 10 Within 15 days1 10,050 4,716 9,717 12,529 20,480 6,964 7,625 20,480 11 16 days to 90 days 50,749 55,787 53,421 52,638 53,611 48,533 54,077 53,611 12 91 days to 1 year 59,179 62,044 62,169 60,000 62,239 59,855 59,068 62,239 n Over 1 year to 5 years 36,807 36,807 36,807 36,807 36,469 36,259 37,006 36,469 14 Over 5 years to 10 years 15,451 15,451 15,451 15,451 15,451 15,575 15,451 15,451 15 Over 10 years 23,066 23,066 23,066 23,066 23,066 22,809 23,066 23,066 16 Federal agency obligations—Total 8,337 7,829 8,234 8,127 10,143 7,954 8,177 10,143 17 Within 15 days1 595 0 470 613 2,704 279 653 2,704 18 16 days to 90 days 1,074 1,152 1,087 837 809 940 851 809 19 91 days to 1 year 1,401 1,323 1,334 1,334 1,224 1,360 1,376 1,224 20 Over 1 year to 5 years 3,712 3,792 3,781 3,781 3,854 3,808 3,730 3,854 21 Over 5 years to 10 years 1,181 1,188 1,188 1,188 1,178 1,193 1,193 1,178 22 Over 10 years 374 374 374 374 374 374 374 374 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • March 1987 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1986 i-tem 1983 1984 1985 1986 Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjustec ADJUSTED FOR 1 Total reserves2 36.14 39.51 45.61 55.64 48.58 49.45 50.49 51.32 51.81 52.40 53.82 55.64 2 Nonborrowed reserves 35.36 36.32 44.29 54.81 47.70 48.64 49.75 50.45 50.80 51.56 53.07 54.81 3 Nonborrowed reserves plus extended credit3 35.37 38.93 44.79 55.11 48.29 49.17 50.13 50.91 51.37 52.06 53.49 55.11 4 Required reserves 35.58 38.66 44.55 54.27 47.74 48.51 49.58 50.58 51.08 51.66 52.85 54.27 5 Monetary base4 185.39 199.17 216.72 238.78 224.90 226.63 228.30 230.59 231.63 233.44 235.92 238.78 Not seasonally adjusted 6 Total reserves2 36.86 40.57 46.84 57.16 47.71 49.20 50.32 50.62 51.55 52.34 54.11 57.17 7 Nonborrowed reserves 36.09 37.38 45.52 56.34 46.84 48.40 49.58 49.75 50.54 51.50 53.36 56.34 8 Nonborrowed reserves plus extended credit3 36.09 39.98 46.02 56.64 47.42 48.93 49.96 50.21 51.11 52.00 53.77 56.64 9 Required reserves 36.30 39.71 45.78 55.80 46.87 48.27 49.41 49.88 50.82 51.60 53.13 55.80 10 Monetary base4 188.66 202.34 220.36 243.04 223.61 227.04 230.02 230.76 231.51 233.04 236.91 243.04 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 38.89 40.70 48.14 59.56 48.42 49.94 51.03 51.28 53.19 54.62 56.40 59.56 12 Nonborrowed reserves 38.12 37.51 46.82 58.73 47.54 49.14 50.29 50.41 52.18 53.78 55.65 58.73 13 Nonborrowed reserves plus extended credit3 38.12 40.09 47.41 59.04 48.24 49.81 50.68 50.90 52.76 54.15 56.15 59.04 14 Required reserves 38.33 39.84 47.08r 58.19 47.58 49.01 50.12 50.54 52.46 53.88 55.42 58.19 15 Monetary base4 192.26 204.18 223.53 247.71 226.12 229.68 232.55 233.32 235.07 237.26 241.27 247.71 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 1986 IItteemm11 DD 19 ee 8 cc 3 .. DD 19 ee 8 cc 4 .. DD 19 ee 8 cc 5 .. DD 19 ee 8 cc 6 .. SSeepptt.. OOcctt.. NNoovv.. DDeecc.. Seasonally adjusted 1 527.1 558.5 626.6 730.4 693.2 701.2 713.5 730.4 7 2,186.0 2,373.8 2,566.5 2,804.5 2,740.8 2,765.2 2,781.4 2804.5 2,697.3 2,986.5 3,201.2 3,488.1 3,425.6 3,444.5 3,461.4 3,488.1 4 3,162.7 3,532.4 3,839.5 n.a. 4,059.4 4,082.3 4,112.2 n.a. 5 5,210.1 5,949.8' 6,778.6' n.a. 7,387.2 7,444.4 7,519.3 n.a. Ml components 6 Currency2 148.3 158.5 170.6 183.5 179.7 118811..22 118822..22 118833..55 7 Travelers checks3 4.9 5.2 5.9 6.4 6.5 6.4 6.4 6.4 8 Demand deposits4 242.7 248.4 271.5 307.9 292.2 293.2 298.4 307.9 9 Other checkable deposits5 131.3 146.3 178.6 232.7 214.8 220.4 226.4 232.7 Nontransactions components 1100 In M26 1,658.9 1,815.4 1,939.9 2,074.0 2,047.6 22,,006644..00 2,067.9 22,,007744..00 1111 In M3 only7 511.3 612.7 634.6 683.6 684.8 679.3 680.0 683.6 Savings deposits9 17 Commercial Banks 133.4 122.3 124.4' 154.6 140.9 114455..77 115500..44 115544..66 13 Thrift institutions 173.2 167.3 179.1 216.8 203.5 208.1 212.9 216.8 Small denomination time deposits9 14 Commercial Banks 351.1 387.2 384.1 362.8 372.6 336677..77 363.9 336622..88 15 Thrift institutions 434.1 500.3 496.2 489.6 498.7 494.0 490.9 489.6 Money market mutual funds 16 General purpose and broker/dealer 138.2 167.5 176.5 207.2 202.2 206.9 207.0 207.2 17 Institution-only 43.2 62.7 64.6 84.1 84.4 84.5 84.4 84.1 Large denomination time deposits10 18 Commercial Banks11 228.7 263.7 279.2 283.4 281.4 227788..99 281.0 228833..44 19 Thrift institutions 101.1 150.2 157.3 160.8 165.8 164.0 161.8 160.8 Debt components 70 Federal debt 1,172.8 1,367.6 1,587.0 n.a. 11,,774411..66 11,,775555..99 11,,777799..44 n.a. 21 Non-federal debt 4,037.3 4,582.2r 5,191.6^ n.a. 5,645.7 5,688.5 5,739.9 n.a. Not seasonally adjusted T> 538.8 570.5 639.9 746.0 690.7 698.4 715.0 746.0 73 2,192.8 2,380.8 2,574.7 2,814.7 2,731.5 2,759.2 2,779.3 2,814.7 74 2,707.9 2,997.8 3,213.9 3,503.3 3,418.3 3,440.4 3,465.0 3,503.3 75 3,169.3 3,537.6 3,845.7 n.a. 4,054.3 4,078.1 4,115.2 n.a. 26 5,204.5 5,944.(K 6,772.0' n.a. 7,365.4 7,426.8 7,503.5 n.a. Ml components 77 Currency2 150.5 160.9 173.1 186.1 179.5 118800..99 183.2 118866..11 78 Travelers checks3 4.6 4.9 5.5 6.0 6.9 6.5 6.1 6.0 79 Demand deposits4 251.3 257.3 281.3 318.9 290.8 292.5 299.6 318.9 30 Other checkable deposits5 132.4 147.5 180.1 235.0 213.5 218.5 226.0 235.0 Nontransactions components 31 M26 1,654.0 1,810.3 1,934.7 2,068.7 2,040.7 2,060.8 2,064.3 22,,006688..77 32 M3 only7 515.1 617.0 639.2 688.6 686.9 681.2 685.7 688.6 Money market deposit accounts 33 Commercial banks 230.5 267.2 332.4 378.1 368.1 337711..77 375.1 337788..11 34 Thrift institutions 148.7 149.7 179.6 192.5 190.2 192.1 193.0 192.5 Savings deposits8 35 Commercial Banks 132.2 112211..44 112233..55 115533..55 114400..77 114466..00 114499..99 115533..55 36 Thrift institutions 172.3 166.5 178.3 215.8 202.5 208.7 213.0 215.8 Small denomination time deposits9 37 Commercial Banks 351.1 387.6 384.8 363.6 375.1 370.4 365.9 363.6 38 Thrift institutions 434.2 501.2 497.6 491.3 498.4 496.9 493.8 491.3 Money market mutual funds 39 General purpose and broker/dealer 138.2 167.5 176.5 207.2 202.2 206.9 207.0 207.2 40 Institution-only 43.2 62.7 64.6 84.1 84.4 84.5 84.4 84.1 Large denomination time deposits10 41 Commercial Banks11 230.8 265.4 280.9 285.2 283.5 281.6 282.8 228855..22 42 Thrift institutions 101.4 150.6 157.8 161.2 165.7 164.4 162.5 161.2 Debt components 43 Federal debt 1,170.2 1,364.7 1,583.7 n.a. 1.734.5 11,,774488..66 1,771.8 n.a. 44 Non-federal debt 4,034.3 4,579.2' 5,188.3' n.a. 5,630.9 5,678.2 5,731.7 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • March 1987 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. 1986 June July Aug. Sept. Oct. Nov. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 109,642.3 128,440.8 154,556.0 187,035.1 188,874.2 194,457.3 197,997.9 197,222.5 187,594.4 2 Major New York City banks 47,769.4 57,392.7 70,445.1 89,201.2 91,040.8 92,961.7 95,252.0 95,919.7 96,829.5 3 Other banks 61,873.1 71,048.1 84,110.9 97,833.9 97,833.4 101,495.6 102,745.9 101,302.9 90,764.9 4 ATS-NOW accounts3 1,405.5 1,588.7 1,920.8 2,188.0 2,320.1 2,414.8 2,704.8 2,292.5 2,501.0 5 Savings deposits4 741.4 633.1 539.0 382.6 417.4 421.0 428.4 456.5 424.9 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 379.7 434.4 496.5 553.3 556.4 567.6 573.9 569.6 538.2 7 Major New York City banks 1,528.0 1,843.0 2,168.9 2,504.5 2,417.2 2,437.0 2,519.8 2,493.4 2,513.2 8 Other banks 240.9 268.6 301.8 323.5 324.2 333.4 334.5 329.2 292.8 9 ATS-NOW accounts3 15.6 15.8 16.7 16.2 16.8 16.9 18.4 15.2 16.1 10 Savings deposits4 5.4 5.0 4.5 3.0 3.2 3.2 3.1 3.2 2.9 DEBITS TO Not seasonally adjusted Demand deposits2 II Ail insured banks 109,517.6 128,059.1 154,108.4 188,924.1 198,657.9 186,892.9 198,433.5 204,618.4 167,465.5 12 Major New York City banks 47,707.4 57,282.4 70,400.9 91,315.2 96,686.1 88,807.6 96,489.1 98,837.9 85,849.7 13 Other banks 64,310.2 70,776.9 83,707.8 97,608.9 101,971.8 98,085.3 101,944.4 105,780.4 81,615.8 14 ATS-NOW accounts3 1,397.0 1,579.5 1,903.4 2,356.3 2,240.4 2,140.8 2,524.1 2,231.9 2,255.1 15 MMDA5 567.4 848.8 1,179.0 1,697.2 1,575.9 1,530.6 1,612.9 1,607.4 1,434.0 16 Savings deposits4 742.0 632.9 538.7 385.9 419.9 413.7 414.2 449.2 382.7 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 379.9 433.5 497.4 564.1 587.8 554.7 577.6 593.5 476.4 18 Major New York City banks 1,510.0 1,838.6 2,191.1 2,570.0 2,620.6 2,421.9 2,603.6 2,656.9 2,225.4 19 Other banks 240.5 267.9 301.6 326.0 338.7 326.6 332.6 343.9 260.8 20 ATS-NOW accounts3 15.5 15.7 16.6 17.4 16.3 15.1 17.3 14.9 14.6 21 MMDA5 2.8 3.5 3.8 4.8 4.4 4.2 4.4 4.4 3.8 22 Savings deposits4 5.4 5.0 4.5 3.0 3.2 3.1 3.0 3.2 2.6 1. Annual averages of monthly figures. NOTE. Historical data for demand deposits are available back to 1970 estimated 2. Represents accounts of individuals, partnerships, and corporations and of in part from the debits series for 233 SMSAs that were available through June states and political subdivisions. 1977. Historical data for ATS-NOW and savings deposits are available back to 3. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- July 1977. Back data are available on request from the Banking Section, Division counts authorized for automatic transfer to demand deposits (ATS). ATS data of Research and Statistics, Board of Governors of the Federal Reserve System, availability starts with December 1978. Washington, D.C. 20551. 4. Excludes ATS and NOW accounts, MMDA and special club accounts, such These data also appear on the Board's G.6 (406) release. For address, see inside as Christmas and vacation clubs. front cover. 5. Money market deposit accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • March 1987 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1986 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Total loans and securities2 1,930.0 1,935.5 1,944.6 1,947.9 1,957.5 1,963.7 1,985.0 2,007.7 2,029.6 2,034.0 2,049.0 2,079.0 2 U.S. government securities 268.2 273.6 269.5 270.0 274.1 274.8 285.4 290.9 294.3 299.6 304.8 309.4 3 Other securities 192.5 188.1 183.3 182.1 181.9 183.6 186.1 192.3 200.7 196.7 194.8 193.4 4 Total loans and leases2 1,469.3 1,473.7 1,491.8 1,495.8 1,501.5 1,505.3 1,513.4 1,524.5 1,534.7 1,537.7 1,549.5 1,576.2 5 Commercial and industrial 502.1 502.4 506.1 507.8 506.7 508.7 508.7 510.4 512.1 514.1 520.3 537.0 6 Bankers acceptances held3.. 4.9 4.8 4.9 5.2 5.6 6.1 5.8 5.9 6.3 6.4 6.1 5.9 7 Other commercial and industrial 497.2 497.6 501.2 502.6 501.0 502.6 502.8 504.4 505.8 507.8 514.1 531.1 8 U.S. addressees4 488.0 488.4 491.3 492.7 490.6 493.1 493.8 495.4 496.9 499.0 505.4 522.6 9 Non-U.S. addressees4.... 9.3 9.2 9.9 9.8 10.5 9.5 9.0 9.1 8.9 8.8 8.7 8.5 10 Real estate 427.1 431.4 436.1 440.7 446.4 450.7 455.9 461.4 465.9 470.8 476.6' 486.3 11 Individual 294.6 297.4 299.5 301.1 303.0 304.5 305.6 306.9 308.8 309.8 311.1 313.1 12 Security 44.1 43.4 50.4 48.0 46.4 42.5 44.8 44.2 44.4 39.5 40.1 37.3 13 Nonbank financial institutions 32.6 31.8 32.2 32.3 33.3 34.7 34.2 34.4 35.1 35.7r 35.3 35.4 14 Agricultural 35.9 35.4 34.9 34.6 34.1 33.7 33.3 33.3 33.2 33. 1' 33.2' 33.2 15 State and political subdivisions 60.5 60.3 60.2 59.8 59.5 59.4 59.0 59.4 59.4 58.5 57.8 56.9 16 Foreign banks 9.1 9.2 9.2 9.2 9.3 9.5 9.5 9.3 9.4 9.1' 9.0 9.7 17 Foreign official institutions ... 7.0 7.0 6.8 5.3 5.1 6.4 6.5 6.5 6.4 6.4 6.2 6.2 18 Lease financing receivables... 19.4 19.6 19.8 19.9 19.8 20.0 20.0 20.2 20.4 20.4 21.0 21.8 19 All other loans 36.9 35.8 36.6 37.3 37.9 35.4 35.9 38.5 39.7 40.3' 38.9' 39.4 Not seasonally adjusted 20 Total loans and securities2 1,934.8 1,932.4 1,944.1 1,950.5 1,956.7 1,965.4 1,981.4 1,999.8 2,027.3 2,029.2 2,048.6 2,092.9 21 U.S. government securities 267.7 275.0 273.2 274.0 275.4 276.2 285.3 289.1 292.6 295.2 302.5 307.1 1 li 1 T O o th ta e l r l s o e a c n u s r i a t n ie d s leases2 1,4 1 7 9 3 3 . . 3 8 1,4 1 6 8 8 8 . . 5 9 1,4 1 8 8 7 3 . . 1 9 1,4 1 9 8 4 1 . . 7 8 1,4 1 9 8 9 2 . . 0 2 1,5 1 0 8 6 2 . . 7 5 1,5 1 1 8 2 3 . . 1 9 1,5 1 1 9 8 2 . . 7 1 1, 2 5 0 3 0 4 . . 7 0 1,5 1 3 9 7 6 . . 7 3 1,5 1 5 9 1 4 . . 3 8 1,5 1 9 9 1 4 . . 3 6 2 2 4 5 Co B m a m nk e e rc rs ia l a c a c n e d p t i a n n d c u es s t h ri e a l l d . 3 . . . . . 50 4 1 . . 9 4 50 4 0 . . 7 1 50 5 6 . . 0 9 51 5 0 . . 2 0 50 5 8 . . 5 5 50 66 9 .. . 00 4 50 66 8 .. . 00 6 50 55 8 .. . 99 3 51 66 1 .. . 11 2 51 66 3 .. . 22 1 51 66 9 .. . 22 3 53 66 9 .. . 33 5 26 Other commercial and 22 2 77 8 N U o . i S n n . d - U u ad s . t S d r . r i a e l a s s d e d e r s e 4 ssees4.... 4 4 9 8 9 6 7 . . . 2 5 3 4 4 9 8 9 5 6 . . . 1 4 3 4 5 9 0 9 2 1 . . . 2 7 9 5 49 0 9 5 4 . . . 5 4 9 4 5 9 0 9 3 3 . . . 7 3 0 4 5 9 0 9 4 3 . . . 0 4 4 4 5 9 0 9 3 2 . . . 3 3 6 4 5 9 0 9 3 2 . . . 4 1 4 5 4 0 9 9 5 5 . . . 3 2 9 4 5 9 0 9 7 6 . . . 2 7 9 5 50 1 9 3 3 . . . 2 8 0 5 5522 3 88 44 3 .. .. . 88 55 2 29 Real estate 427.3 430.6 434.9 439.5 445.2 450.2 455.8 461.7 466.9 472.2 478.1' 487.3 30 Individual 297.0 296.3 296.8 298.6 301.1 303.1 304.9 307.2 310.2 311.4 312.4 316.5 31 Security 46.8 42.6 49.5 48.5 45.6 42.5 43.0 41.3 41.8 3388..77 4411..33 4422..22 32 Nonbank financial institutions 32.8 31.2 31.6 32.2 33.1 34.6 34.3 34.6 35.3 35.5r 35.4 36.4 3333 Agricultural 35.2 34.5 34.0 33.9 34.1 34.2 34.1 34.1 33.9' 3333..66'' 3333..22'' 3322..99 34 State and political subdivisions 60.5 60.3 60.2 59.8 59.5 59.4 59.0 59.4 59.4 58.5 57.8 56.9 3355 Foreign banks 9.3 9.3 9.1 9.0 9.1 9.2 9.4 9.1 9.4 9.3 9.3 10.1 36 Foreign official institutions ... 7.0 7.0 6.8 5.3 5.1 6.4 6.5 6.5 6.4 6.4 6.2 6.2 37 Lease financing receivables... 19.6 19.8 19.8 19.9 19.9 20.0 20.0 20.1 20.3 20.3 20.9 21.7 38 All other loans 36.4 36.6 37.5 38.1 37.9 37.7 36.5 36.3 39. 1' 38.9' 37.4' 41.4 1. Data are prorated averages of Wednesday estimates for domestically char- 2. Excludes loans to commercial banks in the United States. tered insured banks, based on weekly sample reports and quarterly universe 3. Includes nonfinancial commercial paper held. reports. For foreign-related institutions, data are averages of month-end estimates 4. United States includes the 50 states and the District of Columbia. based on weekly reports from large U.S. agencies and branches and quarterly NOTE. These data also appear in the Board's G.7 (407) release. For address, see reports from all U.S. agencies and branches, New York investment companies inside front cover. majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1986 source Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct/ Nov/ Dec. Total nondeposit funds 1 Seasonally adjusted2 131.7 131.7 141.2 134.1 135.7 132.6 136.1 138.1 142.8 140.3 143.0 143.1 2 Not seasonally adjusted 131.8 134.4 143.7 135.0 137.9 131.3 132.1' 137.0'' 141.1 138.6 144.2 142.8 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 151.6 152.7 160.6 160.4 157.9 157.1 166.3r 168.4 167.9 168.3 165.5 162.8 4 Not seasonally adjusted 151.6 155.3 163.1 161.3 160.0 155.8 162.4r 167.3 166.1 166.5 166.7 162.5 5 Net balances due to foreign-related institutions, not seasonally adjusted -19.9 -21.0 -19.4 -26.3 -22.2 -24.5 -30.3 -30.3 -25.0 -28.0 -22.5 -19.7 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted4 -28.0 -25.8 -26.5 -30.2 -29.3 -30.5 -33.8 -31.2 -29.2 -31.9 -28.7 -30.7 7 Gross due from balances 74.3 69.4 71.7 75.2 72.9 72.2 73.9 75.2 74.0 73.5 70.8 73.4 8 Gross due to balances 46.4 43.6 45.2 45.1 43.6 41.7 40.1 44.0 44.8 41.6 42.1 42.7 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted5 8.1 4.8 7.1 3.9 7.1 6.0 3.5 .9 4.2 4.0 6.2 11.0 10 Gross due from balances 57.6 60.0 60.7 62.5 60.0 62.8 64.1 66.2 67.9 68.3 68.8 70.8 11 Gross due to balances 65.7 64.8 67.8 66.4 67.1 68.7 67.7 67.1 72.0 72.2 75.0 81.9 Security RP borrowings 12 Seasonally adjusted" 87.6 89.5 89.7 89.7 89.0 89.3 95.9 96.8 96.7 97.4 96.3 9955..66 13 Not seasonally adjusted 87.7 92.2 92.2 90.6 91.2 88.0 92.0 95.7 95.0 95.6 97.4 95.3 U.S. Treasury demand balances7 14 Seasonally adjusted 19.0 21.1 ' 15.7 17.4 21.3 18.5 14.7 13.1 16.0 13.2 26.5 23.2 15 Not seasonally adjusted 24.0 24.2 15.7 17.8 21.8 16.1 16.8 11.0 18.2 15.3 15.3 19.2 Time deposits, $100,000 or more8 16 Seasonally adjusted 349.4 351.9 347.7 346.9 340.4 339.8 338.5 342.9 342.5 340.1 341.2 344.0 17 Not seasonally adjusted 348.3 350.7 348.3 343.5 339.7 338.1 337.5 343.2 344.6 342.8 342.9 345.8 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. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 5. Averages of daily data. nonbanks and not seasonally adjusted net Eurodollars. Includes averages of 6. Based on daily average data reported by 122 large banks. Wednesday data for domestically chartered banks and averages of current and 7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at previous month-end data for foreign-related institutions. commercial banks. Averages of daily data. 8. Averages of Wednesday figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • March 1987 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars 1986 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. ALL COMMERCIAL BANKING INSTITUTIONS1 1 Loans and securities 2,078.8 2,091.4 2,113.4 2,101.3 2,105.5 2,134.0 2,154.4 2,171.1 2,173.2 2,218.1 2,307.8 2 Investment securities 432.8 427.2 429.5 430.9 432.6 445.7 455.1 464.6 467.4 470.4 474.5 3 U.S. government securities 255.1 253.7 255.8 257.7 259.6 269.6 272.2 275.9 281.8 286.2 291.3 4 Other 177.7 173.5 173.6 173.2 173.0 176.1 183.0 188.7 185.6 184.3 183.2 5 Trading account assets 34.0 30.1 27.8 27.0 27.4 28.7 29.3 27.9 26.0 28.1 29.3 6 Total loans 1,612.0 1,634.2 1,656.1 1,643.5 1,645.5 1,659.6 1,670.0 1,678.5 1,679.9 1,719.5 1,803.9 7 Interbank loans 143.5 146.0 155.7 146.2 139.2 148.6 149.4 145.3 146.8 161.0 172.8 8 Loans excluding interbank 1,468.5 1,488.1 1,500.4 1,497.2 1,506.3 1,511.0 1,520.6 1,533.2 1,533.1 1,558.6 1,631.2 9 Commercial and industrial 501.8 508.5 510.5 506.2 512.3 507.3 510.1 512.1 512.6 520.2 562.7 10 Real estate 431.5 435.9 441.7 446.4 451.4 457.6 463.2 467.7 473.5 479.3 496.4 11 Individual 296.4 296.9 300.4 301.1 304.0 305.6 308.4 310.5 311.8 312.8 319.9 12 All other 238.7 246.9 247.8 243.6 238.7 240.5 238.8 242.9 235.2 246.3 252.2 13 Total cash assets 193.7 198.1 209.9 221.0 196.0 206.2 205.8 196.6 200.4 223.9 271.2 14 Reserves with Federal Reserve Banks 26.2 29.1 25.5 30.2 27.9 28.2 27.9 27.8 31.2 31.7 40.8 15 Cash in vault 22.7 21.8 22.3 23.9 23.0 23.3 23.7 22.9 23.5 22.2 25.7 16 Cash items in process of collection ... 66.9 68.8 80.7 84.6 67.3 72.1 73.5 66.3 66.2 86.5 111.2 17 Demand balances at U.S. depository institutions 31.8 31.1 34.7 36.8 32.0 33.8 33.6 32.3 32.6 37.7 42.6 18 Other cash assets 46.1 47.4 46.7 45.5 45.8 48.7 47.1 47.4 46.9 45.8 51.0 19 Other assets 186.5 195.3 207.0 195.9 196.6 196.6 196.2 200.8 198.2 201.9 223.6 20 Total assets/total liabilities and capital ... 2,458.9 2,484.8 2,530.3 2,518.3 2,498.1 2,536.7 2,556.4 2,568.4 2,571.8 2,643.9 2,802.5 21 Deposits 1,746.4 1,762.8 1,798.4 1,807.4 1,791.9 1,819.5 1,833.6 1,830.8 1,843.7 1,896.8 2,015.1 22 Transaction deposits 492.1 502.5 540.7 542.7 523.3 540.0 544.2 537.4 547.5 594.8 689.7 23 Savings deposits 457.2 462.0 467.8 477.3 482.4 490.8 497.7 504.4 514.8 521.7 533.9 24 Time deposits 797.1 798.3 789.9 787.5 786.3 788.7 791.7 789.0 781.4 780.3 791.5 25 Borrowings •374.7 373.1 390.7 367.4 366.8 379.2 377.3 388.1 380.0 394.1 411.6 26 Other liabilities 169.1 179.3 170.4 173.1 168.5 168.6 174.7 177.5 175.1 180.2 200.3 27 Residual (assets less liabilities) 168.8 169.7 170.8 170.3 170.9 169.4 170.8 172.1 173.1 172.8 175.5 MEMO 28 U.S. government securities (including trading account) 278.4 273.7 274.0 275.1 276.5 288.8 289.8 292.5 298.5 303.6 308.8 29 Other securities (including trading account) 188.4 183.6 183.3 182.8 183.5 185.6 194.6 200.0 194.8 195.0 195.1 DOMESTICALLY CHARTERED COMMERCIAL BANKS2 30 Loans and securities 1,964.0 1,972.4 1,993.3 1,985.3 1,990.0 2,014.0 2,029.4 2,039.8 2,046.2 2,090.2 2,154.4 31 Investment securities 420.8 416.0 416.1 417.1 419.6 432.5 440.2 448.0 450.6 454.4 456.5 32 U.S. government securities 249.6 248.5 248.8 250.2 253.1 263.2 264.5 267.5 272.9 278.1 282.0 33 Other 171.2 167.5 167.2 166.9 166.5 169.4 175.7 180.5 177.8 176.4 174.5 34 Trading account assets 34.0 30.1 27.8 27.0 27.4 28.7 29.3 27.9 26.0 28.1 29.3 35 Total loans 1,509.2 1,526.3 1,549.4 1,541.3 1,543.0 1,552.8 1,559.8 1,564.0 1,569.6 1,607.6 1,668.6 36 Interbank loans 115.8 120.2 129.3 123.3 117.3 122.7 123.1 118.9 122.5 137.8 141.9 37 Loans excluding interbank 1,393.5 1,406.1 1,420.1 1,418.0 1,425.8 1,430.1 1,436.7 1,445.1 1,447.1 1,469.9 1,526.6 38 Commercial and industrial 446.2 448.2 452.3 449.8 452.5 448.4 448.4 447.2 447.2 453.9 485.9 39 Real estate 426.4 430.7 436.3 440.7 445.8 451.9 457.3 461.7 467.6 472.7 489.2 40 Individual 296.2 296.6 300.1 300.8 303.6 305.3 308.1 310.1 311.5 312.4 319.5 41 All other 224.7 230.7 231.4 226.7 223.9 224.6 222.9 226.1 220.8 230.8 232.0 42 Total cash assets 179.1 182.7 194.3 205.8 180.1 187.8 189.3 180.4 183.1 207.6 251.7 43 Reserves with Federal Reserve Banks 25.5 28.4 24.4 28.7 26.3 27.2 26.6 26.9 29.7 29.8 39.7 44 Cash in vault 22.6 21.7 22.2 23.8 22.9 23.2 23.7 22.8 23.4 22.2 25.6 45 Cash items in process of collection ... 66.5 68.4 80.3 84.2 66.7 71.7 73.1 65.9 65.5 86.1 110.8 46 Demand balances at U.S. depository institutions 30.1 29.4 33.0 35.1 30.2 32.0 31.9 30.5 30.9 35.8 40.2 47 Other cash assets 34.3 34.7 34.3 34.0 34.0 33.6 34.1 34.4 33.6 33.7 35.4 48 Other assets 134.6 144.0 150.3 142.8 144.1 143.2 141.7 145.5 142.7 143.0 164.3 49 Total assets/total liabilities and capital ... 2,277.8 2,299.1 2,337.9 2,334.0 2,314.1 2,345.0 2,360.3 2,365.7 2,372.1 2,440.8 2,570.4 50 Deposits 1,698.2 1,713.1 1,749.1 1,758.7 1,741.4 1,768.0 1,779.9 1,775.2 1,788.6 1,840.5 1,953.3 51 Transaction deposits 484.8 495.0 533.1 535.3 515.5 532.1 536.1 529.3 539.7 586.8 680.8 52 Savings deposits 455.3 460.1 465.8 475.2 480.3 488.7 495.5 502.1 512.5 519.2 531.5 53 Time deposits 758.1 758.1 750.1 748.1 745.6 747.2 748.2 743.8 736.5 734.5 741.0 54 Borrowings 304.9 304.8 309.1 294.2 293.5 300.5 295.5 305.2 299.3 312.6 322.6 55 Other liabilities 109.0 114.6 112.0 113.9 111.5 110.3 117.3 116.4 114.2 118.0 122.1 56 Residual (assets less liabilities) 165.6 166.5 167.7 167.2 167.8 166.2 167.7 168.9 169.9 169.6 172.4 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 1986 AAccccoouunntt Nov. 5 Nov. 12 Nov. W Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 1 Cash and balances due from depository institutions 100,844' 117,408' 106,518 106,840' 107,196 105,593 112,947 107,968 135,495 2 Total loans, leases and securities, net 975,222' 976,309' 984,400 988,844' 996,388 984,068 995,987 1,009,148 1,021,010 3 U.S. Treasury and government agency 110,566' 110,558' 112,042 113,975' 118,357 115,870 114,182 115,153 115,372 4 Trading account 22,113 20,750 21,321 21,466' 25,356 23,497 21,815 21,424 21,483 Investment account, by maturity 88,453' 89,808' 90,720 92,508' 93,001 92,373 92,367 93,730 93,889 6 One year or less 16,749 16,549 16,924 17,209 17,762 17,687 17,715 17,703 17,919 7 Over one through five years 40,168 40,336 41,762 41,992 42,314 41,614 41,690 42,129 42,308 8 Over five years 31,536' 32,922' 32,034 33,307' 32,926 33,072 32,962 33,898 33,662 9 Other securities 72,332' 72,846' 71,866 71,98c 71,465 71,044 70,692 71,782 72,210 10 Trading account 4,767 5,183 4,792 5,488 5,373 5,106 5,395 5,967 7,227 11 Investment account 67,564' 67,662' 67,075 66,493' 66,092 65,938 65,297 65,815 64,982 1? States and political subdivisions, by maturity 57,548 57,769 57,510 56,836 56,301 56,128 55,792 55,922 54,629 13 One year or less 9,669 9,616 9,672 9,319 8,920 8,960 8,899 8,707 8,106 14 Over one year 47,879 48,153 47,838 47,517 47,381 47,167 46,894 47,216 46,524 15 Other bonds, corporate stocks, and securities 10,0^ 9,894' 9,564 9,656' 9,791 9,810 9,504 9,893 10,353 16 Other trading account assets 5,364 4,780 4,910 5,728 6,256 6,059 5,371 4,984 5,178 17 Federal funds sold1 64,195 61,757 65,465 61,034' 61,764 57,038 61,900 57,710 51,480 18 To commercial banks 40,841 37,930 40,749 36,437' 39,434 33,204 39.911 36,223 31,501 19 To nonbank brokers and dealers in securities 15,862 15,893 16,198 16,643 15,136 15,869 14,806 14,697 13,844 70 7,492 7,934 8,518 7,954' 7,194 7,966 7,182 6,791 6,134 71 Other loans and leases, gross2 744,405' 748,017' 751,861 757,923' 760,551 756,064 765,830 781,336 798,522 ?? Other loans, gross2 727,068' 730,663' 734,434 740,426' 743,020 738,404 748,196 763,536 780,512 73 Commercial and industrial2 261,997' 262,997' 263,778 263,484' 266,454 265,917 269,030 276,175 289,111 74 Bankers acceptances and commercial paper 2,492 2,442 2,638 2,496 2,725 2,452 2,582 2,464 2,446 ?5 All other 259,505' 260,555' 261,140 260,988' 263,729 263,465 266,448 273,711 286,665 76 U.S. addressees 255.339' 256,393' 257,063 257,099' 259,882 259,604 262,618 269,816 282,909 27 Non-U.S. addressees 4,166 4,162 4,077 3,890 3,847 3,861 3,830 3,895 3,756 78 Real estate loans2 200,575 201,464 202,709 202,835 203,606 204,618 206,144 207,129 209,352 29 To individuals for personal expenditures 141,110 141,369 141,800 142,208 142,557 142,970 143,777 145,014 145,744 30 To depository and financial institutions 48,049' 48,438' 49,289 50,806' 50,010 48,297 49,876 53,511 56,246 31 Commercial banks in the United States 16,435 16,456 16,848 17,974 17,683 16,975 18,118 20,266 20,547 3? Banks in foreign countries 4,687' 4,746' 5,197 6,342' 5,644 5,447 5,098 6,681 6,690 33 Nonbank depository and other financial institutions 26,927' 27,237' 27,244 26,491 26,683 25,875 26,659 26,564 29,009 34 For purchasing and carrying securities 13,572 14,270 15,032 18,602 16,991 15,131 17,257 17,962 14,367 35 To finance agricultural production 5,791 5,723 5,707 5,684 5,669 5,598 5,592 5,611 5,780 36 To states and political subdivisions 35,300 35,247 35,304 35,230 35,104 34,819 34,684 34,724 34,539 37 To foreign governments and official institutions 3,213 3,124 3,247 3,342 3,305 3,128 3,042 2,982 3,352 38 All other 17,459' 18,031' 17,565 18,234' 19,323 17,925 18,793 20,426 22,020 39 Lease financing receivables 17,338' 17,354' 17,427 17,497 17,531 17,661 17,634 17,800 18,010 40 LESS: Unearned income 4,956' 4,977' 5,030 5,033 4,988 5,007 5,009 5,041 5,052 41 Loan and lease reserve2 16,683' 16,671' 16,713 16,763 17,016 17,001 16,978 16,777 16,701 4? Other loans and leases, net2 722,766' 726,368' 730,118 736,127' 738,546 734,055 743,842 759,518 776,769 43 All other assets 132,968' 128,175' 122,024 123,691' 129,201 127,166 130,882 132,075 141,945 44 Total assets 1,209,034' 1,221,892' 1,212,943 1,219,376' 1,232,785 1,216,828 1,239,816 1,249,191 1,298,450 45 Demand deposits 229,331' 244,430' 224,563 238,557' 242,311 235,235 244,491 251,829 290,483 46 Individuals, partnerships, and corporations 174,350' 189,328' 170,026 181,456' 183,584 181,457 187,437 191,671 223,527 47 States and political subdivisions 5,576 5,224 5,209 5,694 5,425 5,702 6,138 5,956 6,994 48 U.S. government 4,464 1,921 3,904 2,749 3,919 2,425 1,491 3,022 1,840 49 Depository institutions in United States 25,514 27,726 25,911 28,071' 27,979 27,079 28,735 30,086 33,838 50 Banks in foreign countries 6,134 6,485 6,828 6,866 6,825 6,988 5,714 7,298 7,773 51 Foreign governments and official institutions 954 1,252 838 1,004 914 707 758 948 888888 5? Certified and officers' checks 12,339 12,493 11,847 12,718 13,664 10,877 14,218 12,848 1155,,662244 53 Transaction balances other than demand deposits 53,125 53,128 52,698 53,313 55,286 54,910 55,829 56,954 60,093 S4 Nontransaction balances 499,926' 500,133' 500,416 500,632 500,998 502,109 501,358 504,161 509,177 55 Individuals, partnerships and corporations 461,465' 462.07C 462,449 462,829' 463,280 464,328 463,660 466,370 471,044 56 States and political subdivisions 25,984' 25,855' 26,032 25,953' 26,100 26,061 25,766 25,530 25,537 57 U.S. government 916 807 804 781 794 784 752 754 762 58 Depository institutions in the United States 10,389 10,241' 9,981 9,935 9,683 9,855 10,090 10,448 10,798 59 Foreign governments, official institutions and banks 1,172 1,160 1,151 1,133 1,140 1,081 1,090 1,058 1,035 60 Liabilities for borrowed money 255,584' 258,294' 263,957 255,753' 263,922 253,061 265,774 259,041 263,387 61 Borrowings from Federal Reserve Banks 2,831 110 3,319 25 373 0 1,439 0 443 6? Treasury tax-and-loan notes 2,600' 5,757' 8,891 10,450 7,355 2,102 15,253 17,578 18,550 63 All other liabilities for borrowed money3 250,153' 252,428' 251,746 245,278' 256,194 250,959 249,082 241,462 244,393 64 Other liabilities and subordinated note and debentures 86,521' 81,112' 86,633 86,801' 85,435 86,191 87,412 92,428 89,687 65 Total liabilities 1,124,488' 1,137,098' 1,128,268 1,135,056' 1,147,951 1,131,506 1,154,864 1,164,413 1,212,826 66 Residual (total assets minus total liabilities)4 84,546 84,794 84,675 84,32C 84,834 85,322 84,952 84,778 85,624 MEMO 67 Total loans and leases (gross) and investments adjusted5 939,586' 943,572' 948,546 956,229' 961,275 955,897 959,946 974,477 990,714 68 Total loans and leases (gross) adjusted2,5 751,324' 755,389' 759,729 764,546' 765,198 762,924 769,701 782,557 797,954 69 Time deposits in amounts of $100,000 or more 152,477 152,551 152,456 151,812 151,357 151,941 151,383 153,942 154,441 70 Loans sold outright to affiliates—total6 1,750 1,746 1,688 1,651 1,631 1,713 1,756 1,889 1,833 71 Commercial and industrial 1,055 1,029 975 971 950 1,003 1,004 1,088 1,013 7? Other 695 717 712 680 680 710 752 801 820 73 Nontransaction savings deposits (including MMDAs) 220,198 220,478 221,016 221,745 222,687 223,531 223,718 223,850 227,943 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 • March 1987 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures except as noted 1986 AAccccoouunntt Nov. 5 Nov. 12 Nov. 19 Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 1 Cash and balances due from depository institutions 26,312' 30,884' 29,010' 28,236 26,092 28,839 30,069 25,957 32,884 2 Total loans, leases and securities, net1 208,490^ 212,409' 217,154' 216,409' 216,340 212,332 216,971 219,590 219,526 Securities 3 U.S. Treasury and government agency2 0 0 0 0 0 0 0 0 0 4 Trading account2 0 0 0 0 0 0 0 0 0 5 Investment account, by maturity 13,524 13,826 13,701 14,108 14,172 13,809 13,580 13,500 13,529 6 One year or less 1,221 1,234 1,234 1,233 1,503 1,437 1,415 1,419 1,423 7 Over one through five years 5,360 5,566 5,521 5,874 5,689 5,355 5,404 5,395 5,330 8 Over five years 6,943 7,027 6,945 7,001 6,980 7,016 6,761 6,686 6,775 9 Other securities2 0 0 0 0 0 0 0 0 0 10 Trading account2 0 0 0 0 0 0 0 0 0 11 Investment account 16,178 16,407 16,318 16,261 16,213 16,167 15,879 16,447 16,484 12 States and political subdivisions, by maturity 13,969 14,381 14,301 14,237 14,174 14,162 14,176 14,648 14,616 13 One year or less 1,924 1,885 1,902 1,833 1,793 1,781 1,809 1,787 1,696 14 Over one year 12,045 12,497 12,400 12,404 12,381 12,380 12,368 12,862 12,920 15 Other bonds, corporate stocks and securities 2,209 2,025 2,017 2,024 2,039 2,006 1,703 1,799 1,868 16 Other trading account assets2 0 0 0 0 0 0 0 0 0 Loans and leases 17 Federal funds sold3 27,294 28,474 31,204 24,837' 25,740 25,711 27,740 24,440 20,477 18 To commercial banks 13,213 14,290 16,303 10,167 12,308 11,183 14,556 11,797 10,054 19 To nonbank brokers and dealers in securities 7,974 7,871 8,419 8,374 7,549 8,034 7,459 7,267 5,858 20 To others 6,107 6,312 6,482 6,296' 5,883 6,494 5,725 5,376 4,565 21 Other loans and leases, gross 157,761r 160,006' 162,281' 167,565 166,675 163,109 166,228 171,608 175,324 22 Other loans, gross 153,559' 155,811' 158,032' 163,284 162,378 158,833 161,936 167,307 171,026 23 Commercial and industrial 60,721' 61,136' 61,434' 61,422 62,287 61,764 62,323 63,980 67,561 24 Bankers acceptances and commercial paper 637 739 806 740 956 680 742 548 544 25 All other 60,084' 60,397' 60,628' 60,682 61,331 61,084 61,582 63,432 67,016 26 U.S. addressees 59,692' 59,993' 60,196' 60,275 60,978 60,708 61,214 6633,,004444 66,585 27 Non-U.S. addressees 392 404 432 407 352 375 368 338888 432 28 Real estate loans 34,266 34,498 34,914 35,165 35,406 35,727 35,994 36,557 37,504 29 To individuals for personal expenditures 19,717 19,799 19,841 19,918 19,996 20,116 20,208 20,483 20,750 30 To depository and financial institutions 16,846' 17,159' 18,072' 19,908 18,787 17,331 18,891 20,479 21,610 31 Commercial banks in the United States 7,762 7,661 8,274 9,417 9,225 8,848 9,778 10,716 11,321 32 Banks in foreign countries 2,120 2,176 2,534 3,455 2,724 2,679 2,462 3,076 3,061 33 Nonbank depository and other financial institutions 6,965' 7,321' 7,264' 7,035 6,839 5,804 6,650 6,686 7,229 34 For purchasing and carrying securities 6,950 7,511 8,241 10,772 9,203 8,177 9,221 9,501 6,091 35 To finance agricultural production 282 260 284 310 310 297 325 334 346 36 To states and political subdivisions 8,632 8,652 8,706 8,674 8,664 8,410 8,381 8,429 8,413 37 To foreign governments and official institutions 948 884 892 1,005 990 839 771 722 1,072 38 All other 5,197' 5,911' 5,646' 6,110 6,734 6,171 5,822 6,822 7,679 39 Lease financing receivables 4,202' 4,195' 4,250' 4,281 4,297 4,276 4,292 4,302 4,298 40 LESS: Unearned income 1,527' 1,526' 1,566' 1,575 1,551 1,553 1,565 1,569 1,562 41 Loan and lease reserve 4,740' 4,778' 4,784' 4,787 4,909 4,912 4,892 4,837 4,728 42 Other loans and leases, net 151,493' 153,702' 155,931' 161,203 160,215 156,644 159,771 165,203 169,035 43 All other assets4 73,254' 69,204' 65,067' 67,094 71,372 69,144 71,900 71,241 79,865 44 Total assets 308,057' 312,497' 311,232' 311,739' 313,805 310,314 318,940 316,789 332,275 Deposits 45 Demand deposits 59,369 62,933' 59,115 62,341' 63,939 63,874 66,194 66,372 78,411 46 Individuals, partnerships, and corporations 40,140 42,516' 38,944' 42,064 42,231 44,555 45,484 45,521 55,129 47 States and political subdivisions 698 572 640 590 713 704 614 728 1,106 48 U.S. government 834 257 647' 524 850 466 215 587 245 49 Depository institutions in the United States 5,775 6,411 6,387 6,592' 7,101 6,951 7,370 7,900 9,213 50 Banks in foreign countries 4,895 5,176 5,638 5,527 5,560 5,663 4,500 5,814 6,453 51 Foreign governments and official institutions 780 1,093 665 843 764 568 608 795 681 52 Certified and officers' checks 6,246 6,908 6,194 6,201 6,720 4,967 7,404 5,028 5,583 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers) 6,379 6,579 6,509 6,595 6,800 6,808 7,097 7,434 7,742 54 Nontransaction balances 94,826' 94,631' 94,940' 95,344 95,480 95,238 95,920 96,345 97,844 55 Individuals, partnerships and corporations 85,533' 85,414' 85,757' 86,022 86,122 86,027 87,009 87,482 88,643 56 States and political subdivisions 6,229 6,175 6,164 6,244 6,442 6,392 6,118 6,008 6,064 57 U.S. government 82 80 74 63 64 62 59 56 50 58 Depository institutions in the United States 2,387 2,355 2,337 2,413 2,240 2,167 2,145 2,221 2,524 59 Foreign governments, official institutions and banks 595 606 607 602 611 589 588 579 563 60 Liabilities for borrowed money 82,386' 86,834' 85,102' 82,427' 83,625 80,213 83,973 80,317 80,216 61 Borrowings from Federal Reserve Banks 1,245 0 750 0 0 0 800 0 0 62 Treasury tax-and-loan notes 632 1,742 2,154 2,390 1,532 440 3,652 4,392 4,609 63 All other liabilities for borrowed money5 80,51(K 85,093' 82,198' 80,037' 82,094 79,772 79,521 75,925 75,608 64 Other liabilities and subordinated note and debentures 37,563' 33.94C 38,004' 37,784 36,388 36,270 37,919 39,087 39,978 65 Total liabilities 280,523' 284,917' 283,671' 284,492' 286,232 282,402 291,104 289,555 304,191 66 Residual (total assets minus total liabilities)6 27,534 27,580 27,561 27,247 27,573 27,912 27,836 27,234 28,084 MEMO 67 Total loans and leases (gross) and investments adjusted1'7 193,782' 196,761' 198,928' 203,188' 201,268 198,766 199,094 203,482 204,440 68 Total loans and leases (gross) adjusted7 164,080' 166,528' 168,909' 172,818' 170,882 168,789 169,634 173,535 174,427 69 Time deposits in amounts of $100,000 or more 33,851 34,022 34,115' 34,127 34,390 34,229 34,093 34,743 35,176 1. Excludes trading account securities. 6. Not a measure of equity capital for use in capital adequacy analysis or for 2. Not available due to confidentiality. other analytic uses. 3. Includes securities purchased under agreements to resell. 7. Exclusive of loans and federal funds transactions with domestic commercial 4. Includes trading account securities. banks. 5. Includes federal funds purchased and securities sold under agreements to NOTE. These data also appear in the Board's H.4.2 (504) release. For address, repurchase. see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS' Assets and Liabilities Millions of dollars, Wednesday figures 1986 AAccccoouunntt Nov. 5 Nov. 12 Nov. 19 Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 1 Cash and due from depository institutions. 10,092 10,131 10,467 9,879 10,195 9,628 9,616 9,651 11,777 2 Total loans and securities 73,508 75,640 75,329 74,922 77,993 79,000 81,849 87,080 91,819 3 U.S. Treasury and govt, agency securities 5,239 5,376 5,592 5,757 5,985 6,232 6,100 6,066 6,508 4 Other securities 5,511 5,424 5,408 5,477 5,463 5,641 5,678 5,846 6,102 5 Federal funds sold2 4,045 5,639 6,285 3,823 5,502 5,002 5,664 5,137 6,674 6 To commercial banks in the United States 3,0% 4,823 5,437 3,110 4,589 4,028 4,717 4,218 5,678 7 To others 948 816 848 713 913 973 947 918 996 8 Other loans, gross 58,713 59,200 58,044 59,865 61,042 62,125 64,407 70,032 72,536 9 Commercial and industrial 36,840 37,052 36,515 36,937 38,094 38,510 38,570 41,090 43,211 10 Bankers acceptances and commercial paper 2,969 2,980 2,919 2,990 3,033 3,136 2,999 3,031 3,157 11 All other 33,870 34,071 33,596 33,947 35,062 35,374 35,571 38,058 40,054 12 U.S. addressees 31,546 31,810 31,397 31,742 32,814 33,227 33,354 35,620 37,989 13 Non-U.S. addressees 2,325 2,261 2,199 2,206 2,248 2,147 2,217 2,438 2,064 14 To financial institutions 14,187 14,196 14,211 14,453 15,056 15,259 16,034 17,378 17,286 15 Commercial banks in the United States . 11,037 10,791 10,721 11,113 11,749 11,810 12,360 13,388 12,746 16 Banks in foreign countries 1,066 1,116 1,149 1,077 1,031 1,048 1,099 1,038 1,249 17 Nonbank financial institutions 2,083 2,290 2,341 2,263 2,276 2,401 2,575 2,952 3,290 18 To foreign govts, and official institutions .. 527 536 521 545 510 512 518 505 548 19 For purchasing and carrying securities .. 2,588 2,514 1,975 2,925 2,363 2,755 3,635 4,852 5,105 20 All other 4,572 4,902 4,821 5,005 5,019 5,090 5,649 6,207 6,386 21 Other assets (claims on nonrelated parties).. 23,292 23,022 23,360 23,226 22,878 23,307 23,286 22,894 23,623 22 Net due from related institutions 14,043 13,582 14,287 14,627 12,410 13,615 14,281 16,498 14,388 23 Total assets 120,936 122,376 123,444 122,654 123,476 125,550 129,032 136,122 141,607 24 Deposits or credit balances due to other than directly related institutions.... 36,034 36,986 36,744 37,279 37,383 37,428 38,849 40,348 42,357 25 Transaction accounts and credit balances3 3,124 3,333 3,229 3,260 3,600 3,505 3,960 3,578 3,974 26 Individuals, partnerships, and corporations 1,924 1,821 1,973 1,827 2,006 1,989 2,082 2,180 1,896 27 Other 1,200 1,513 1,255 1,432 1,593 1,515 1,878 1,398 2,078 28 Nontransaction accounts4 32,909 33,653 33,515 34,019 33,784 33,923 34,889 36,770 38,383 29 Individuals, partnerships, and corporations 26,738 27,252 27,082 27,160 27,270 27,418 28,367 30,112 31,421 30 Other 6,171 6,400 6,434 6,859 6,514 6,505 6,522 6,658 6,963 31 Borrowings from other than directly related institutions 50,393 47,412 48,359 46,948 47,890 47,613 48,447 53,087 50,596 32 Federal funds purchased5 29,328 25,862 25,375 21,466 24,298 24,170 24,656 23,552 21,956 33 From commercial banks in the United States 19,534 17,523 16,519 13,807 16,445 15,531 15,092 14,516 12,131 34 From others 9,793 8,340 8,856 7,658 7,853 8,639 9,564 9,036 9,826 35 Other liabilities for borrowed money.... 21,065 21,550 22,984 25,482 23,591 23,443 23,790 29,535 28,640 36 To commercial banks in the United States 18,932 19,146 20,397 22,738 20,606 20,310 20,556 25,540 24,394 37 To others 2,134 2,404 2,587 2,745 2,985 3,134 3,234 3,996 4,245 38 Other liabilities to nonrelated parties 24,885 24,708 25,095 25,113 24,735 25,423 25,433 25,296 25,142 39 Net due to related institutions 9,624 13,270 13,246 13,313 13,468 15,086 16,303 17,391 23,511 40 Total liabilities 120,936 122,376 123,444 122,654 123,476 125,550 129,032 136,122 141,607 MEMO 41 Total loans (gross) and securities adjusted6 59,374 60,026 59,171 60,699 61,655 63,161 64,772 69,473 73,395 42 Total loans (gross) adjusted6 48,624 49,226 48,171 49,465 50,206 51,288 52,993 57,562 60,785 1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and 4. Includes savings deposits, money market deposit accounts, and time agencies of foreign banks that include those branches and agencies with assets of deposits. $750 million or more on June 30, 1980, plus those branches and agencies that had 5. Includes securities sold under agreements to repurchase. reached the $750 million asset level on Dec. 31, 1984. 6. Exclusive of loans to and federal funds sold to commercial banks in the 2. Includes securities purchased under agreements to resell. United States. 3. Includes credit balances, demand deposits, and other checkable deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • March 1987 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances, not seasonally adjusted Commercial banks TTyyppee ooff hhoollddeerr 1985 1986 11998811 11998822 11998833 11998844 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June34 Sept. Dec. Mar. June Sept.? 1 All holders—Individuals, partnerships, and corporations 288.9 291.8 293.5 302.7 298.4 299.3 321.0 307.4 324.7 333.6 2 Financial business 28.0 35.4 32.8 31.7 27.9 28.1 32.3 31.8 32.2 35.9 3 Nonfinancial business 154.8 150.5 161.1 166.3 164.5 167.2 178.5 166.6 182.0 185.9 4 Consumer 86.6 85.9 78.5 81.5 82.8 82.0 85.5 84.0 86.4 86.3 5 Foreign 2.9 3.0 3.3 3.6 3.7 3.5 3.5 3.4 3.0 3.3 6 Other 16.7 17.0 17.8 19.7 19.5 18.5 21.2 21.6 21.1 22.2 Weekly reporting banks 1985 1986 11998811 11998822 11998833 11998844 DDeecc.. DDeecc.. DDeecc.. DDeecc..22 June34 Sept. Dec. Mar. June Sept.? 7 All holders—Individuals, partnerships, and corporations 137.5 144.2 146.2 157.1 151.2 153.6 168.6 159.7 168.5 174.7 8 Financial business 21.0 26.7 24.2 25.3 22.1 22.7 25.9 25.5 25.7 28.9 9 Nonfinancial business 75.2 74.3 79.8 87.1 83.7 85.5 94.5 86.8 93.1 94.8 10 Consumer 30.4 31.9 29.7 30.5 31.0 31.6 33.2 32.6 34.9 35.0 11 Foreign 2.8 2.9 3.1 3.4 3.5 3.3 3.1 3.3 2.9 3.2 12 Other 8.0 8.4 9.3 10.9 10.9 10.5 12.0 11.5 11.9 12.8 1. Figures include cash items in process of collection. Estimates of gross thrift institutions. Historical data have not been revised. The estimated volume of deposits are based on reports supplied by a sample of commercial banks. Types of such deposits for December 1984 is $5.0 billion at all insured commercial banks depositors in each category are described in the June 1971 BULLETIN, p. 466. and $3.0 billion at weekly reporting banks. Figures may not add to totals because of rounding. 4. Historical data back to March 1985 have been revised to account for 2. Beginning in March 1984, these data reflect a change in the panel of weekly corrections of bank reporting errors. Historical data before March 1985 have not reporting banks, and are not comparable to earlier data. Estimates in billions of been revised, and may contain reporting errors. Data for all commercial banks for dollars for December 1983 based on the new weekly reporting panel are: financial March 1985 were revised as follows (in billions of dollars): all holders, -.3; business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other, financial business, -.8; nonfinancial business, -.4; consumer, .9; foreign, .1; 9.5. other, -.1. Data for weekly reporting banks for March 1985 were revised as 3. Beginning March 1985, financial business deposits and, by implication, total follows (in billions of dollars): all holders, -.1; financial business, -.7; nonfinangross demand deposits have been redefined to exclude demand deposits due to cial business, -.5; consumer, 1.1; foreign, .1; other, -.2. 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 1986 Instrument Dec. Dec. Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 166,436 187,658 237,586 300,899 332,330 310,711 311,435 326,601 326,567 329,516 321,907 Financial companies3 Dealer-placed paper4 2 Total 34,605 44,455 56,485 78,443 100,942 89,757 90,038 94,084 97,994 99,688 93,548 3 Bank-related (not seasonally adjusted) 2,516 2,441 2,035 1,602 2,265 1,568 1,772 1,799 1,980 2,172 2,031 Directly placed paper5 4 Total 84,393 97,042 110,543 135,504 152,159 142,933 142,121 149,200 147,497 147,163 146,434 5 Bank-related (not seasonally adjusted) 32,034 35,566 42,105 44,778 40,860 40,147 39,067 40,415 37,455 38,957 39,205 6 Nonfinancial companies6 47,437 46,161 70,558 86,952 79,229 78,021 79,276 83,317 81,076 82,665 81,925 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 79,543 78,309 77,121 68,115 64,912 67,080 66,437 64,480 67,009 65,920 64,952 Holder 8 Accepting banks 10,910 9,355 9,811 11,174 13,419 12,789 11,577 12,127 13,101 12,569 12.787 9 Own bills 9,471 8,125 8,621 9,448 11,703 10,641 9,257 9,794 11,001 10,178 10,951 10 Bills bought 1,439 1,230 1,191 1,726 1,716 2,147 2,320 2,333 2,101 2,391 1,835 Federal Reserve Banks 11 Own account 1,480 418 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 949 729 671 937 1,317 896 931 897 924 1,131 1,052 13 Others 66,204 67,807 66,639 56,004 50,176 53,396 53,929 51,456 52,984 52,220 51.113 Basis 14 Imports into United States 17,683 15,649 17,560 15,147 14,682 15,106 15,601 15,796 16,612 15,980 15.352 15 Exports from United States 16,328 16,880 15,859 13,204 12,933 13,721 13,781 12,948 12,693 12,612 12,701 16 All other 45,531 45,781 43,702 39,765 37,297 38,254 37,056 35,736 37,704 37,328 36,899 1. Effective Dec. 1, 1982, there was a break in the commercial paper series. The 4. Includes all financial company paper sold by dealers in the open market. key changes in the content of the data involved additions to the reporting panel, 5. As reported by financial companies that place their paper directly with the exclusion of broker or dealer placed borrowings under any master note investors. agreements from the reported data, and the reclassification of a large portion of 6. Includes public utilities and firms engaged primarily in such activities as bank-related paper from dealer-placed to directly placed. communications, construction, manufacturing, mining, wholesale and retail trade, 2. Correction of a previous misclassification of paper by a reporter has created transportation, and services. a break in the series beginning December 1983. The correction adds some paper to 7. Beginning October 1984, the number of respondents in the bankers acceptnonfinancial and to dealer-placed financial paper. ance survey were reduced from 340 to 160 institutions—those with $50 million or 3. Institutions engaged primarily in activities such as, but not limited to, more in total acceptances. The new reporting group accounts for over 95 percent commercial, savings, and mortgage banking; sales, personal, and mortgage of total acceptances activity. financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective Date Average rate 11.50 1985--Jan. 15.. 10.50 1984—Jan 11.00 1985—July 12.00 May 20.. 10.00 Feb 11.00 Aug 12.50 June 18.. 9.50 Mar 11.21 Sept 13.00 Apr 11.93 Oct 12.75 1986--Mar. 7.. 9.00 May 12.39 Nov 12.50 Apr. 21.. 8.50 June 12.60 Dec 12.00 July 11.. 8.00 July 13.00 11.75 Aug. 26.. 7.50 Aug 13.00 1986—Jan 11.25 Sept 12.97 Feb 10.75 Oct 12.58 Mar Nov 11.77 Apr Dec 11.06 May 1985—Jan. . 10.61 July Feb. 10.50 Aug Mar. 10.50 Sept Apr. 10.50 Oct May. 10.31 Nov June 9.78 Dec NOTE. These data also appear in the Board's H.15 (519) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • March 1987 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. 1986 1986, week ending IInnssttrruummeenntt 11998844 11998855 11998866 Sept. Oct. Nov. Dec. Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 MONEY MARKET RATES 1 Federal funds1-2 10.22 8.10 6.80 5.89 5.85 6.04 6.91 6.00 6.25 5.97 6.30 6.31 2 Discount window borrowing1-2-3 8.80 7.69 6.33 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 Commercial paper4-5 3 1-month 10.05 7.94 6.62 5.74 5.74 5.84 6.63 5.88 6.02 6.03 6.59 7.39 4 3-month 10.10 7.95 6.49 5.68 5.68 5.76 6.10 5.81 5.89 5.90 6.14 6.35 5 6-month 10.16 8.01 6.39 5.61 5.61 5.69 5.88 5.72 5.75 5.77 5.92 6.05 Finance paper, directly placed4-5 6 1-month 9.97 7.91 6.58 5.76 5.74 5.79 6.32 5.84 5.92 5.96 6.33 6.79 7 3-month 9.73 7.77 6.38 5.61 5.56 5.67 5.81 5.73 5.73 5.73 5.84 5.83 8 6-month 9.65 7.75 6.31 5.54 5.50 5.58 5.74 5.60 5.64 5.65 5.74 5.82 Bankers acceptances5-6 9 3-month 10.14 7.92 6.39 5.60 5.58 5.67 5.96 5.71 5.73 5.82 6.02 6.21 10 6-month 10.19 7.96 6.29 5.56 5.52 5.59 5.78 5.58 5.60 5.70 5.82 5.94 Certificates of deposit, secondary market7 11 1-month 10.17 7.97 6.61 5.73 5.71 5.80 6.66 5.84 6.03 6.06 6.52 7.58 12 3-month 10.37 8.05 6.52 5.71 5.69 5.76 6.04 5.76 5.83 5.88 6.08 6.27 13 6-mo nth 10.68 8.25 6.51 5.71 5.70 5.76 5.95 5.76 5.81 5.85 6.00 6.10 14 Eurodollar deposits, 3-month8 10.73 8.28 6.71 5.88 5.88 5.96 6.23 5.99 6.04 6.05 6.16 6.50 U.S. Treasury bills5 Secondary market9 15 3-month 9.52 7.48 5.98 5.21 5.18 5.35 5.53 5.39 5.42 5.49 5.57 5.56 16 6-month 9.76 7.65 6.03 5.35 5.26 5.41 5.55 5.42 5.44 5.49 5.59 5.60 17 1-year 9.92 7.81 6.08 5.45 5.41 5.48 5.55 5.45 5.47 5.51 5.57 5.59 Auction average10 18 3-month 9.57 7.47 5.96 5.19 5.18 5.35 5.49 5.35 5.40 5.51 5.55 5.49 19 6-month 9.80 7.64 6.03 5.31 5.26 5.42 5.53 5.39 5.46 5.50 5.58 5.56 20 1-year 9.91 7.76 6.07 5.33 5.44 5.45 5.60 5.45 n.a. n.a. n.a. 5.60 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 10.89 8.43 6.46 5.77 5.72 5.80 5.87 5.77 5.78 5.83 5.90 5.92 22 2-year 11.65 9.27 6.87 6.35 6.28 6.28 6.27 6.21 6.21 6.22 6.30 6.30 23 3-year 11.89 9.64 7.06 6.62 6.56 6.46 6.43 6.39 6.37 6.38 6.45 6.46 24 5-year 12.24 10.13 7.31 6.92 6.83 6.76 6.67 6.66 6.61 6.62 6.68 6.69 25 7-year 12.40 10.51 7.55 7.28 7.24 7.08 6.97 6.99 6.93 6.93 6.98 6.96 26 10-year 12.44 10.62 7.68 7.45 7.43 7.25 7.11 7.14 7.09 7.09 7.12 7.08 27 20-year 12.48 10.97 7.85 7.56 7.61 7.42 7.28 7.31 7.26 7.26 7.29 7.25 28 30-year 12.39 10.79 7.80 7.62 7.70 7.52 7.37 7.42 7.35 7.35 7.39 7.35 Composite13 29 Over 10 years (long-term) 11.99 10.75 8.14 8.08 8.04 7.81 7.67 7.71 7.64 7.67 7.69 7.61 State and local notes and bonds Moody's series14 30 Aaa 9.61 8.60 6.95 6.91 6.44 6.19 6.29 6.15 6.20 6.35 6.30 6.30 31 Baa 10.38 9.58 7.75 7.59 7.23 7.13 7.25 7.20 7.15 7.35 7.25 7.25 32 Bond Buyer series15 10.10 9.11 7.32 7.11 7.08 6.85 6.87 6.74 6.77 6.94 6.92 6.83 Corporate bonds Seasoned issues16 33 All industries 13.49 12.05 9.71 9.55 9.54 9.37 9.23 9.28 9.25 9.22 9.23 9.21 34 Aaa 12.71 11.37 9.02 8.89 8.86 8.68 8.49 8.55 8.52 8.48 8.51 8.47 35 Aa 13.31 11.82 9.47 9.36 9.33 9.20 9.02 9.11 9.05 9.02 9.03 9.00 36 A 13.74 12.28 9.95 9.73 9.72 9.51 9.41 9.43 9.44 9.41 9.41 9.38 37 Baa 14.19 12.72 10.39 10.20 10.24 10.07 9.97 9.99 9.99 9.97 9.97 9.98 38 A-rated, recently-offered utility bonds17 13.81 12.06 9.61 9.56 9.48 9.31 9.08 9.16 9.08 9.03 9.08 9.07 MEMO: Dividend/price ratio18 39 Preferred stocks 11.59 10.49 8.76 8.10 8.17 8.07 8.18 8.13 8.20 8.14 8.22 8.15 40 Common stocks 4.64 4.25 3.48 3.43 3.49 3.40 3.38 3.35 3.29 3.33 3.39 3.40 1. Weekly and monthly figures are averages of all calendar days, where the places. Thus, average issuing rates in bill auctions will be reported using two rate for a weekend or holiday is taken to be the rate prevailing on the preceding rather than three decimal places. business day. The daily rate is the average of the rates on a given day weighted by 11. Yields are based on closing bid prices quoted by at least five dealers. the volume of transactions at these rates. 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 2. Weekly figures are averages for statement week ending Wednesday. are read from a yield curve at fixed maturities. Based on only recently issued, 3. Rate for the Federal Reserve Bank of New York. actively traded securities. 4. Unweighted average of offering rates quoted by at least five dealers (in the 13. Averages (to maturity or call) for all outstanding bonds neither due nor case of commercial paper), or finance companies (in the case of finance paper). callable in less than 10 years, including one very low yielding "flower" bond. Before November 1979, maturities for data shown are 30-59 davs, 90-119 days, 14. General obligations based on Thursday figures; Moody's Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90—1 IS days, and 150— 15. General obligations only, with 20 years to maturity, issued by 20 state and 179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 5. Yields are quoted on a bank-discount basis, rather than an investment yield 16. Daily figures from Moody's Investors Service. Based on yields to maturity basis (which would give a higher figure). on selected long-term bonds. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Compilation of the Federal Reserve. This series is an estimate of the yield (which may be, but need not be, the average of the rates quoted by the dealers). on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 7. Unweighted average of offered rates quoted by at least five dealers early in call protection. Weekly data are based on Friday quotations. the day. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 8. Calendar week average. For indication purposes only. sample of ten issues: four public utilities, four industrials, one financial, and one 9. Unweighted average of closing bid rates quoted by at least five dealers. transportation. Common stock ratios on the 500 stocks in the price index. 10. Rates are recorded in the week in which bills are issued. Beginning with the NOTE. These data also appear in the Board's H.15 (519) and G.13 (415) releases. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the For address, see inside front cover. percentage yield (on a bank discount basis) that they would accept to two decimal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.36 STOCK MARKET Selected Statistics 1986 IInnddiiccaattoorr 11998844 11998855 11998866 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 92.46 108.09 136.00 137.25 137.37 140.82 138.32 140.91 137.06 136.74 140.84 142.12 2 Industrial 108.01 123.79 155.85 157.35 158.59 163.15 158.06 160.10 156.52 156.56 162.10 163.85 3 Transportation 85.63 104.11 119.85 125.92 122.21 120.65 112.03 111.24 114.06 120.04 122.27 121.26 4 Utility 46.44 56.75 71.35 69.35 68.65 70.69 74.20 77.84 74.56 73.38 75.77 76.07 5 Finance 89.28 114.21 147.18 154.83 151.28 151.73 150.23 152.90 145.56 143.89 142.97 144.29 6 Standard & Poor's Corporation (1941-43 = 10)' ... 160.50 186.84 236.34 237.97 238.46 245.30 240.18 245.00 238.27 237.36 245.09 248.61 7 American Stock Exchange2 (Aug. 31, 1973 = 50) 207.96 229.10 264.38 270.59 274.22 281.18 269.93 268.55 264.30 257.82 265.14 264.65 Volume of trading (thousands of shares) 8 New York Stock Exchange 91,084 109,191 141,306 146,330 127,624 126,151 137,709 128,661 150,831 131,155 154,770 148,228 9 American Stock Exchange 6,107 8,355 11,846 13,503 11,870 12,795 10,320 9,885 10,853 8,930 10,513 12,272 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 22,470 28,390 36,840 30,760 32,370 32,480 33,170 34,550 34,580 36,310 37,090 36,840 Free credit balances at brokers4 11 Margin-account5 1,755 2,715 4,880 3,065 2,405 2,585 2,570 3,035 3,395 3,805 3,765 4,880 12 Cash-account 10,215 12,840 19,000 14,340 12,970 13,570 14,600 14,210 14,060 14,445 15,045 19,000 Margin-account debt at brokers (percentage distribution, end of period)6 13 Total 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)1 14 Under 40 18.0 34.0 29.0 30.0 31.0 15 40-49 18.0 20.0 n.a. 20.0 19.0 20.0 n a. n.a. n.a. n.a. n.a. n.a. 16 50-59 16.0 19.0 20.0 22.0 20.0 17 60-69 9.0 11.0 13.0 12.0 13.0 18 70-79 5.0 8.0 9.0 8.0 8.0 19 80 or more 6.0 8.0 9.0 9.0 8.0 Special miscellaneous-account balances at brokers (end of period)6 20 Total balances (millions of dollars)8 ... 75,840 99,310 105,790 109,620 112,401 Distribution by equity status (percent) 21 Net credit status 58.0 59.0 Debt status, equity of 22 60 percent or more 29.0 31.0 33.0 33.0 32.0 23 Less than 60 percent 11.0 11.0 8.0 9.0 9.0 Margin requirements (percent of market value and effective date)9 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 and dealers. Data items that are no longer reported include distributions of margin companies. With this change the index includes 400 industrial stocks (formerly debt by equity status of the account and special miscellaneous-account 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 balances. financial. 7. Each customer's equity in his collateral (market value of collateral less net 2. Beginning July 5, 1983, the American Stock Exchange rebased its index debit balance) is expressed as a percentage of current collateral values. effectively cutting previous readings in half. 8. Balances that may be used by customers as the margin deposit required for 3. Beginning July 1983, under the revised Regulation T, margin credit at additional purchases. Balances may arise as transfers based on loan values of broker-dealers includes credit extended against stocks, convertible bonds, stocks other collateral in the customer's margin account or deposits of cash (usually sales acquired through exercise of subscription rights, corporate bonds, and govern- proceeds) occur. ment securities. Separate reporting of data for margin stocks, convertible bonds, 9. Regulations G, T, and U of the Federal Reserve Board of Governors, and subscription issues was discontinued in April 1984, and margin credit at prescribed in accordance with the Securities Exchange Act of 1934, limit the broker-dealers became the total that is distributed by equity class and shown on amount of credit to purchase and carry margin stocks that may be extended on lines 17-22. securities as collateral by prescribing a maximum loan value, which is a specified 4. Free credit balances are in accounts with no unfulfilled commitments to the percentage of the market value of the collateral at the time the credit is extended. brokers and are subject to withdrawal by customers on demand. Margin requirements are the difference between the market value (100 percent) 5. New series beginning June 1984. and the maximum loan value. The term "margin stocks" is defined in the 6. In July 1986, the New York Stock Exchange stopped reporting certain data corresponding regulation. items that were previously obtained in a monthly survey of a sample of brokers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • March 1987 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1986 AAccccoouunntt 11998833 11998844 Feb. Mar. Apr. May June July Aug.' Sept.' Oct.' Nov. Dec. Savings and loan associations 1 Assets 773,417 903,488 943,029 947,302 954,869' 963,274' 954,224' 958,029' 965,055 957,319 962,097 964,664 2 Mortgages 449944,,778899 555555,,227777 576,608 574,732 575,177' 574,992' 565,043' 565,380' 566,474 557,152 557,892 556,892 3 98,482 99,332 103,415' 108,324' 113,161' 113,095 113,619 117,671 120,642 122,486 4 Cash and investment securities1 . 104,274 124,801 127,028 131,464 132,352' 134,881' 130,877' 132,789' 138,866 138,550 138,680 141,701 5 Other 174,354 223,396 239,394 241,104 247,339' 253,399' 258,303' 259,858' 259,713 261,616 265,522 266,070 6 Liabilities and net worth 773,417 903,488 943,029 947,302 954,869' 963,274' 954,224' 958,029' 965,055 957,319 962,097 964,664 7 Savings capital 634,455 725,045 747,016 752,056 750,299 751,138 744,026' 747,020 749,020 743,519 742,668 740,350 n a. 8 Borrowed money 92,127 125,666 131,671 133,407 140,427' 145,032' 148,049' 146,579' 148,535 155,729 152,667 156,793 9 FHLBB 52,626 64,207 71,214 70,464 73,815 73,520 73,553' 75,058 75,594 80,364 75,295 75,511 10 Other 39,501 61,459 60,457 62,943 66,612' 71,512' 74,496' 71,521' 72,941 75,365 77,372 81,282 11 Other 15,968 17,944 23,125 20,078 21,978' 24,722' 20,792' 22,856' 24,704 15,461 23,372 24,101 12 Net worth2 30,867 34,833 41,217 41,760 42,163' 42,382' 41,357' 41,574' 42,796 42,610 43,390 43,421 MEMO 13 Mortgage loan commitments outstanding3 54,113 61,305 52,542 54,366 55,818 57,997 57,20C 55,687 53,180 51,143 49,879 48,198 FSLIC-insured federal savings banks 14 Assets 64,969 98,559 146,508 152,823 155,686 164,129 180,124' 183,310' 186,812 196,244 202,110 205,054 15 Mortgages 38,698 57,429 81,641 85,028 86,598' 89,108 99,758' 101,759' 103,020 108,229 110,387 111,966 16 Mortgage-backed securities.... 7,172 9,949 16,367 17,851 18,661 19,829 21,598' 23,247' 24,097 26,443 27,525 28,110 17 Other 6,595 10,971 13,759 13,923 14,590 15,083 16,774' 17,025' 17,056 18,492 18,684 19,284 18 Liabilities and net worth 64,969 98,559 146,508 152,823 155,686' 164,129 180,124' 183,310' 186,812 196,244 202,110 205,054 19 Savings capital 53,227 79,572 114,743 119,434 121,133 126,123 138,168 140,610 142,858 149,705 152,834 154,393 n a. 7,0 Borrowed money 7,477 12,798 21,254 22,747 23,196 25,686 28,502 28,722 29,390 32,319 33,430 33,954 21 FHLBB 4,640 7,515 11,283 12,064 12,476 12,830 15,301 15,866 16,123 16,853 17,382 17,863 7.7 Other 2,837 5,283 9,971 10,683 10,720 12,856 13,201 12,856 13,267 15,466 16,048 16,091 73 Other 1,157 1,903 3,397 3,291 3,758 4,338 4,279 4,555 4,918 4,670 5,325 5,842 24 Net worth 3,108 4,286 7,114 7,349 7,599 7,982 9,175' 9,424 9,647 10,181 10,522 10,867 MEMO 25 Mortgage loan commitments outstanding3 2,151 3,234 7,718 8,330 8,287 8,762 9,410 10,134 9,770 10,216 9,358 9,970 Savings banks 26 Assets 193,535 203,898 218,119 221,256 222,542 226,495 223,367 224,569 227,011 228,854 230,919 Loans 27 Mortgage 97,356 102,895 109,702 110,271 111,813 112,417 110,958 111,971 113,265 114,188 116,648 28 Other 19,129 24,954 32,501 34,873 34,591 35,500 36,692 36,421 37,350 37,298 36,130 Securities 29 U.S. government 15,360 14,643 12,474 12,313 12,013 13,210 12,115 12,297 12,043 12,357 12,585 30 Mortgage-backed securities... 18,205 19,215 21,525 21,593 21,885 22,546 22,413 22,954 21,161 23,216 23,437 31 State and local government... 2,177 2,077 2,297 2,306 2,372 2,343 2,281 2,309 2,400 2,407 2,347 37 Corporate and other 25,375 23,747 20,707 20,403 20,439 20,260 2,036 20,862 20,602 20,902 21,156 33 Cash 6,263 4,954 5,646 5,845 5,570 6,225 5,301 4,651 5,018 4,811 5,195 n a. n .a. 34 Other assets 9,670 11,413 13,267 13,652 13,859 13,994 13,244 13,104 13,172 13,675 13,421 35 Liabilities 193,535 203,898 218,119 221,256 222,542 226,495 223,367 224,569 227,011 228,854 230,919 36 Deposits 172,665 180,616 186,777 188,960 189,025 190,310 189,109 188,615 189,937 190,210 190,334 37 Regular4 170,135 177,418 182,890 184,704 184,580 185,716 183,970 183,433 184,764 185,002 185,254 38 Ordinary savings 38,554 33,739 32,693 33,021 33,057 33,577 34,008 34,166 34,530 35,227 36,165 39 Time 95,129 104,732 104,588 105,562 105,550 105,146 103,083 102,374 102,668 102,191 101,125 40 Other 2,530 3,198 3,887 4,256 4,445 4,594 5,139 5,182 5,173 5,208 5,080 41 Other liabilities 10,154 12,504 17,793 18,412 19,074 21,384 19,226 20,641 21,360 21,947 23,319 42 General reserve accounts 10,368 10,510 13,211 13,548 14,114 14,519 14,731 15,084 15,427 16,319 16,896 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.37—Continued 1986 AAccccoouunntt 11998833 11998844 Feb. Mar. Apr. May June July Aug/ Sept/ Oct/ Nov. Dec. Credit unions5 43 Total assets/liabilities and capital . 81,961 93,036 122,623 126,653 128,229 132,415 134,703 137,901 139,233 140,496 143,662 145,653 44 Federal 54,482 63,205 80,024 82,275 83,543 86,289 87,579 89,539 90,367 91,981 93,257 94,638 45 State 27,479 29,831 42,599 44,378 44,686 46,126 47,124 48,362 48,866 48,515 50,405 51,015 46 Loans outstanding 50,083 62,561 74,207 75,300 76,385 76,774 77,847 79,647 80,656 81,820 83,388 84,635 n a. 47 Federal 32,930 42,337 48,059 48,633 49,756 49,950 50,613 51,331 52,007 53,042 53,434 53,877 48 State 17,153 20,224 26,148 26,667 26,629 26,824 27,234 28,316 28,649 28,778 29,954 30,758 49 Savings 74,739 84,348 110,541 114,579 116,703 120,331 122,952 125,331 126,268 128,125 130,483 131,778 50 Federal 49,889 57,539 73,227 75,698 77,112 79,479 80,975 82,596 83,132 84,607 86,158 87,009 51 State 24,850 26,809 37,314 38,881 39,591 40,852 41,977 42,735 43,136 43,518 44,325 44,769 Life insurance companies 52 Assets 654,948 722,979 839,856 848,535 855,605 863,610 872,359 877,919 887,255 892,304 Securities 53 Government 50,752 63,899 76,761 77,965 78,494 79,051 78,284 78,722 79,188 81,636 54 United States6 28,636 42,204 53,264 54,289 54,705 55,120 54,197 54,321 54,487 56,698 55 State and local 9,986 8,713 9,588 9,674 9,869 9,930 10,114 10,350 10,472 10,606 56 Foreign7 12,130 12,982 13,909 14,002 13,920 14,001 13,973 14,051 14,229 14,332 57 Business 322,854 359,333 435,758 440,963 445,573 450,279 455,119 455,013 463,135 462,540 n a. n a. n a. 58 Bonds 257,986 295,998 354,911 357,196 361,306 364,122 367,966 369,704 374,670 378,267 59 Stocks 64,868 63,335 80,847 83,767 84,267 86,157 87,153 85,309 88,465 84,273 60 Mortgages 150,999 156,699 172,997 174,823 175,951 177,554 180,041 182,542 183,943 185,268 61 Real estate 22,234 25,767 29,356 29,804 30,059 30,025 30,350 31,151 31,844 31,725 62 Policy loans 54,063 54,505 54,267 54,273 54,272 54,351 57,342 54,249 54,247 54,273 63 Other assets 54,046 63,776 57,351 57,753 57,492 57,802 58,290 58,792 57,905 58,086 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." FSLIC-insured federal savings banks: Estimates by the FHLBB for federal 2. Includes net undistributed income accrued by most associations. savings banks insured by the FSL1C and based on monthly reports of federally 3. As of July 1985, data include loans in process. insured institutions. 4. Excludes checking, club, and school accounts. Savings banks: Estimates by the National Council of Savings Institutions for all 5. Data include all federally insured credit unions, both federal and state savings banks in the United States and for FDIC-insured savings banks that have chartered, serving natural persons. converted to federal savings banks. 6. Direct and guaranteed obligations. Excludes federal agency issues not Credit unions: Estimates by the National Credit Union Administration for guaranteed, which are shown in the table under "Business" securities. federally chartered and federally insured state-chartered credit unions serving 7. Issues of foreign governments and their subdivisions and bonds of the natural persons. International Bank for Reconstruction and Development. Life insurance companies: Estimates of the American Council of Life Insurance NOTE. Savings and loan associations: Estimates by the FHLBB for all for all life insurance companies in the United States. Annual figures are annualassociations in the United States based on annual benchmarks for non-FSLIC- statement asset values, with bonds carried on an amortized basis and stocks at insured associations and the experience of FSLIC-insured associations. year-end market value. Adjustments for interest due and accrued and for differences between market and book values are not made on each item separately but are included, in total, in "other assets." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • March 1987 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1986 111999888444 111999888555 111999888666 July Aug. Sept. Oct. Nov. Dec. U.S. budget1 1 Receipts, total 666,457 734,057 769,091 62,974 56,523 78,013 59,012 52,%7 78,035 2 On-budget n.a. 547,886 568,862 47,571 41,404 59,978 43,865 38,158 60,694 3 Off-budget n.a. 186,170 200,228 15,402 15,119 18,035 15,147 14,809 17,341 4 Outlays, total 851,7% 945,987 989,789 85,203 84,434 81,750 84,267 79,973 90,112 5 On-budget n.a. 769,180 806,291 69,604 68,112 65,614 68,780 63,639 75,623 6 Off-budget n.a. 176,807 183,498 15,599 16,322 16,136 15,486 16,334 14,489 7 Surplus, or deficit (-), total -185,339 -211,931 -220,698 -22,229 -27,911 -3,737 -25,255 -27,006 -12,077 8 On-budget n.a. -221,294 -237,428 -22,033 -26,708 -5,636 -24,915 -25,481 -14,930 9 Off-budget n.a. 9,363 16,371 -1% -1,203 1,898 -340 -1,524 2,853 Source of financing (total) 10 Borrowing from the public 170,817 197,269 235,745 14,980 20,278 2222,,118888 5,936 40,352 2222,,882244 11 Cash and monetary assets (decrease, or increase (-))2 5,636 10,673 -18,044 3,972 10,298 -21,313 18,131 -2,721 -14,751 12 Other3 8,885 3,989 2,997 3,277 -2,665 2,862 1,188 -10,625 4,004 MEMO 13 Treasury operating balance (level, end of period) 22,345 17,060 31,384 20,810 10,428 31,384 13,616 17,007 30,945 14 Federal Reserve Banks 3,791 4,174 7,514 3,983 1,106 7,514 2,491 2,529 7,588 15 Tax and loan accounts 18,553 12,886 23,870 16,827 9,322 23,870 11,126 14,478 23,357 1. In accordance with the Balanced Budget and Emergency Deficit Control Act 3. Includes accrued interest payable to the public; allocations of special of 1985, all former off-budget entries are now presented on-budget. The Federal drawing rights; deposit funds; miscellaneous liability (including checks outstand- Financing Bank (FFB) activities are now shown as separate accounts under the ing) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S. agencies that use the FFB to finance their programs. The act has also moved two currency valuation adjustment; net gain/loss for IMF valuation adjustment; and social security trust funds (Federal old-age survivors insurance and Federal profit on the sale of gold. disability insurance trust funds) off-budget. 2. Includes U.S. Treasury operating cash accounts; SDRs; reserve position on SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. the U.S. quota in the IMF; loans to International Monetary Fund; and other cash Government," and the "Daily Treasury Statement." 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 1985 1986 1986 111999888555 111999888666 HI H2 HI H2 Oct. Nov. Dec. RECEIPTS 1 All sources 734,057 769,091 380,618 364,790 394,345 387,524 59,012 52,967 78,035 2 Individual income taxes, net 334,560 348,959 166,783 169,987 169,444 183,156 31,123 24,122 33,584 3 Withheld 298,941 314,803 149,288 155,725 153,919 164,071 29,556 24,242 30,733 4 Presidential Election Campaign Fund ... 35 36 29 6 31 4 0 0 0 5 Nonwithheld 101,328 105,994 76,155 22,295 78,981 27,733 3,122 1,143 3,585 6 Refunds 65,743 71,873 58,684 8,038 63,488 8,652 1,554 1,263 734 Corporation income taxes 7 Gross receipts 77,413 80,442 42,193 36,528 41,946 42,108 3,219 2,716 16,531 8 Refunds 16,082 17,298 8,370 7,751 9,557 8,230 2,679 968 839 9 Social insurance taxes and contributions, net 265,163 283,901 144,598 128,017 156,714 134,006 21,179 21,751 22,267 10 Employment taxes and contributions' 234,646 255,062 126,038 116,276 139,706 122,246 19,583 19,015 21,625 11 Self-employment taxes and contributions2 10,468 11,840 9,482 985 10,581 1,338 0 223 0 12 Unemployment insurance 25,758 24,098 16,213 9,281 14,674 9,328 1,135 2,377 196 13 Other net receipts3 4,759 4,741 2,350 2,458 2,333 2,429 459 360 446 14 Excise taxes 35,992 32,919 17,259 18,470 15,944 15,947 2,708 2,488 3,003 15 Customs deposits 12,079 13,323 5,807 6,354 6,369 7,282 1,281 1,090 1,098 16 Estate and gift taxes 6,422 6,958 3,204 3,323 3,487 3,649 647 488 695 17 Miscellaneous receipts4 18,510 19,887 9,144 9,861 10,002 9,605 1,534 1,279 1,696 OUTLAYS 18 All types 946,223 989,789 463,842 487,188 486,037 505,739 84,267 79,973 90,112 19 National defense 252,748 273,369 124,186 134,675 135,367 138,544 23,177 20,907 24,401 20 International affairs 16,176 14,471 6,675 8,367 5,384 8,750 1,259 1,986 1,014 21 General science, space, and technology ... 8,627 9,017 4,230 4,727 12,519 4,594 794 708 843 22 Energy 5,685 4,792 680 3,305 2,484 2,735 405 553 485 23 Natural resources and environment 13,357 13,508 5,892 7,553 6,245 7,141 1,200 973 1,253 24 Agriculture 25,565 31,169 11,705 15,412 14,482 16,160 3,573 3,162 3,751 25 Commerce and housing credit 4,229 4,258 -260 644 860 3,647 593 182 -314 26 Transportation 25,838 28,058 11,440 15,360 12,658 14,745 2,107 2,399 2,409 27 Community and regional development .... 7,680 7,510 3,408 3,901 3,169 3,494 735 478 548 28 Education, training, employment, social services 29,342 29,662 14,149 14,481 14,712 15,268 2,332 2,504 2,896 29 Health 33,542 35,936 16,945 17,237 17,872 19,814 4,266 3,153 3,032 30 Social security and medicare 254,446 190,850 128,351 129,037 135,214 138,296 23,700 22,182 23,378 31 Income security 128,200 120,686 65,246 59,457 60,786 59,628 9,367 9,130 11,625 32 Veterans benefits and services 26,352 26,614 11,956 14,527 12,193 14,497 3,491 797 3,641 33 Administration of justice 6,277 6,555 3,016 3,212 3,352 3,360 539 505 684 34 General government 5,228 6,796 2,857 3,634 3,566 2,786 209 371 895 35 General-purpose fiscal assistance 6,353 6,430 2,659 3,391 2,179 2,767 284 -2 226 36 Net interest' 129,436' 135,284 65,143 67,448 68,054 66,770 9,951 12,441 11,912 37 Undistributed offsetting receipts6 -32,759 -33,244 -14,436 -17,953 -17,193 -17,426 -3,719 -2,455 -2,694 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 • March 1987 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1984 1985 1986 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 1,576.7 1,667.4 1,715.1 1,779.0 1,827.5 1,950.3 1,991.1 2,063.6 2,129.5 2 Public debt securities 1,572.3 1,663.0 1,710.7 1,774.6 1,823.1 1,945.9 1,986.8 2,059.3 2,125.3 3 Held by public 1,309.2 1,373.4 1,415.2 1,460.5 1,506.6 1,597.1 1,634.3 1,684.9 1,742.4 4 Held by agencies 263.1 289.6 295.5 314.2 316.5 348.9 352.6 374.4 382.9 5 Agency securities 4.5 4.5 4.4 4.4 4.4 4.4 4.3 4.3 4.2 6 Held by public 3.4 3.4 3.3 3.3 3.3 3.3 3.2 3.2 3.2 7 Held by agencies 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 8 Debt subject to statutory limit 1,573.0 1,663.7 1,711.4 1,775.3 1,823.8 1,932.4 1,973.3 2,060.0 2,111.0 9 Public debt securities 1,571.7 1,662.4 1,710.1 1,774.0 1,822.5 1,931.1 1,972.0 2,058.7 2,109.7 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 1,573.0 1,823.8 1,823.8 1,823.8 1,823.8 2,078.7 2,078.7 2,078.7 2,111.0 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 1985 1986 TTyyppee aanndd hhoollddeerr 11998822 11998833 11998844 Q4 Ql Q2 Q3 1 Total gross public debt 1,197.1 1,410.7 1,663.0 1,945.9 1,945.9 1,986.8 2,059.3 2,125.3 By type 7 Interest-bearing debt 1,195.5 1,400.9 1,660.6 1,943.4 1,943.4 1,984.2 2,056.7 2,122.7 3 Marketable 881.5 1,050.9 1,247.4 1,437.7 1,437.7 1,472.8 1,498.2 1,564.3 4 Bills 311.8 343.8 374.4 399.9 399.9 393.2 396.9 410.7 5 Notes 465.0 573.4 705.1 812.5 812.5 842.5 869.3 896.9 6 Bonds 104.6 133.7 167.9 211.1 211.1 223.0 232.3 241.7 7 Nonmarketable1 314.0 350.0 413.2 505.7 505.7 511.4 558.5 558.4 8 State and local government series 25.7 36.7 44.4 87.5 87.5 88.5 98.2 102.4 9 Foreign issues2 14.7 10.4 9.1 7.5 7.5 6.7 5.3 4.1 10 Government 13.0 10.4 9.1 7.5 7.5 6.7 5.3 4.1 II Public 1.7 .0 .0 .0 .0 .0 .0 .0 17 Savings bonds and notes 68.0 70.7 73.1 78.1 78.1 79.8 82.3 85.6 13 Government account series3 205.4 231.9 286.2 332.2 332.2 336.0 372.3 365.9 14 Non-interest-bearing debt 1.6 9.8 2.3 2.5 2.5 2.6 2.6 .4 By holder4 15 U.S. government agencies and trust funds 209.4 236.3 289.6 348.9 348.9 352.6 374.4 382.9 16 Federal Reserve Banks 139.3 151.9 160.9 181.3 181.3 184.8 183.8 190.8 17 Private investors 848.4 1,022.6 1,212.5 1,417.2 1,417.2 1,473.1 1,502.7 1,553.3 18 Commercial banks 131.4 188.8 183.4 192.2 192.2 195.1 197.2 212.5 19 Money market funds 42.6 22.8 25.9 25.1 25.1 29.9 22.8 24.9 70 Insurance companies 39.1 56.7 76.4 93.2 93.2 95.8 n.a. n.a. 21 Other companies 24.5 39.7 50.1 59.0 59.0 59.6 59.8 67.0 22 State and local governments 127.8 155.1 179.4 n.a. n.a. n.a. n.a. n.a. Individuals 73 Savings bonds 68.3 71.5 74.5 79.8 79.8 81.4 83.8 87.1 74 Other securities 48.2 61.9 69.3 75.0 75.0 76.2 73.9 69.0 75 Foreign and international5 149.5 166.3 192.9 214.6 214.6 225.4 239.8 256.3 26 Other miscellaneous investors6 217.0 259.8 360.6 n.a. n.a. n.a. n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments offoreign 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 1986 1986 week ending Wednesday IItteemm 11998833 11998844 11998855 Oct. Nov. Dec. Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 Immediate delivery2 1 U.S. government securities 42,135 52,778 75,331 93,308 96,844 88,557 100,142 89,988 107,541 90,993 76,232 64,519 By maturity 2 Bills 22,393 26,035 32,900 32,634 32,218 33,095 30,424 29,433 37,931 32,414 30,491 31,053 3 Other within 1 year 708 1,305 1,811 2,221 2,122 2,348 2,112 2,407 1,874 2,214 2,733 2,095 4 1-5 years 8,758 11,733 18,361 25,480 25,954 21,989 27,730 19,536 24,662 25,479 21,449 13,872 5-10 years 5,279 7,606 12,703 21,186 20,976 19,388 24,941 23,635 28,038 18,433 12,117 11,963 6 Over 10 years 4,997 6,099 9,556 11,787 15,574 11,737 14,935 14,978 15,037 12,453 9,442 5,536 By type of customer 7 U.S. government securities dealers 2,257 2,919 3,336 3,905 3,902 3,306 3,346 4,764 4,490 3,762 22,,445577 2,199 8 U.S. government securities brokers 21,045 25,580 36,222 49,366 50,707 44,553 51,757 44,207 57,156 45,922 36,989 29,723 9 All others3 18,833 24,278 35,773 40,037 42,235 40,698 45,040 41,017 45,896 41,310 36,787 32,597 10 Federal agency securities 5,576 7,846 11,640 18,302 20,111 20,158 23,840 17,606 21,053 26,342 19,184 11,530 11 Certificates of deposit 4,333 4,947 4,016 4,372 3,861 3,686 4,990 3,802 4,069 3,686 3,870 2,740 12 Bankers acceptances 2,642 3,243 3,242 3,348 2,859 2,478 2,873 3,163 2,930 2,230 2,141 1,677 13 Commercial paper 8,036 10,018 12,717 17,078 16,705 16,565 17,997 15,758 16,111 15,786 18,133 14,381 Futures transactions4 14 Treasury bills 6,655 6,947 5,561 1,754 2,801 1,894 2,682 1,533 2,618 2,837 863 1,272 15 Treasury coupons 2,501 4,503 6,069 5,416 6,387 5,519 6,570 6,905 6,958 6,413 3,435 3,021 16 Federal agency securities 265 262 240 0 11 0 36 2 0 0 1 Forward transactions5 17 U.S. government securities 1,493 1,364 1,283 1,731 2,403 2,066 1,367 975 726 3,634 3,058 1,314 18 Federal agency securities 1,646 2,843 3,857 8,450 10,258 9,928 11,579 7,809 11,222 13,727 9,790 4,276 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 NOTE. Data for the period May 1 to Sept. 30, 1986, are partially estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • March 1987 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1986 1986 week ending Wednesday IItteemm Oct. Nov. Dec. Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 Positions Net immediate2 1 U.S. government securities 14,082 5,429 7,391 8,297 14,368 10,213 16,483 12,962 6,435 8,156 8,778 ? Bills 10,800 5,500 10,075 11,060 14,967 10,975 15,666 12,479 9,373 8,868 9,681 3 Other within 1 year 921 63 1,050 2,704 2,030 2,968 2,549 3,075 2,851 3,146 2,974 4 1-5 years 1,912 2,159 5,154 9,676 8,419 6,814 7,114 7,414 4,585 7,044 8,279 5-10 years -78 -1,119 -6,202 -11,127 -8,131 -6,975 -5,596 -6,853 -6,892 -7,287 -7,702 6 Over 10 years 528 -1,174 -2,686 -4,017 -2,916 -3,568 -3,250 -3,153 -3,481 -3,616 -4,454 7 Federal agency securities 7,313 15,294 22,860 29,066 30,257 34,680 30,704 32,252 36,521 37,689 34,575 8 Certificates of deposit 5,838 7,369 9,192 9,511 9,956 10,049 11,050 11,301 9,469 9,291 9,440 9 Bankers acceptances 3,332 3,874 4,586 5,897 5,244 5,072 5,137 5,868 4,905 4,697 4,703 10 Commercial paper 3,159 3,788 5,570 8,302 9,630 9,789 9,693 9,076 10,395 9,673 10,065 Futures positions 11 Treasury bills -4,125 -4,525 -7,322 -15,845 -15,972 -16,170 -17,634 -18,159 -16,316 -14,533 --1144,,330055 12 Treasury coupons -1,033 1,794 4,465 3,424 4,022 3,360 3,778 3,123 3,298 2,878 4,254 13 Federal agency securities 171 233 -722 -70 -82 -89 -85 -89 -89 -91 -90 Forward positions 14 U.S. government securities -1,936 -1,643 -911 -122 -781 -2,099 -287 -1,521 -2,464 -2,750 -2,762 15 Federal agency securities -3,561 -9,205 -9,420 -11,322 -14,622 -17,062 -15,220 -15,842 -19,849 -19,101 -14,458 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 29,099 44,078 68,035 115,847 108,790 109,241 111,701 115,124 117,984 100,519 101,861 17 Term agreements 52,493 68,357 80,509 110,294 117,299 123,297 113,426 115,600 120,403 132,610 130,498 Repurchase agreements5 18 Overnight and continuing 57,946 75,717 101,410 150,662 146,960 149,315 159,998 161,115 163,962 127,007 138,766 19 Term agreements 44,410 57,047 70,076 108,375 115,968 120,500 102,718 105,670 105,778 147,723 133,497 1. Data for dealer positions and sources of financing are obtained from reports reverses to maturity, which are securities that were sold after having been submitted to the Federal Reserve Bank of New York by the U.S. government obtained under reverse repurchase agreements that mature on the same day as the securities dealers on its published list of primary dealers. securities. Data for immediate positions do not include forward positions. Data for positions are averages of daily figures, in terms of par value, based on 3. Figures cover financing involving U.S. government and federal agency the number of trading days in the period. Positions are net amounts and are shown securities, negotiable CDs, bankers acceptances, and commercial paper. on a commitment basis. Data for financing are in terms of actual amounts 4. Includes all reverse repurchase agreements, including those that have been borrowed or lent and are based on Wednesday figures. arranged to make delivery on short sales and those for which the securities 2. Immediate positions are net amounts (in terms of par values) of securities obtained have been used as collateral on borrowings, that is, matched agreements. owned by nonbank dealer firms and dealer departments of commercial banks on a 5. Includes both repurchase agreements undertaken to finance positions and commitment, that is, trade-date basis, including any such securities that have "matched book" repurchase agreements. been sold under agreements to repurchase (RPs). The maturities of some NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially repurchase agreements are sufficiently long, however, to suggest that the securi- estimated. ties involved are not available for trading purposes. Immediate positions include 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 1986 AAggeennccyy 11998833 11998844 11998855 June July Aug. Sept. Oct. Nov. 1 Federal and federally sponsored agencies 240,068 271,220 293,905 296,226 298,361 299,211 302,411 305,011 n.a. 2 Federal agencies 33,940 35,145 36,390 35,826 35,768 36,132 36,473 36,716 36,952 3 Defense Department1 243 142 71 48 45 40 37 36 35 4 Export-Import Bank2 3 14,853 15,882 15,678 14,953 14,953 14,953 14,274 14,274 14,274 5 Federal Housing Administration4 194 133 115 115 115 115 117 123 124 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 1,404 1,337 1,940 1,854 1,854 1,854 3,104 3,104 3,104 8 Tennessee Valley Authority 14,970 15,435 16,347 16,617 16,562 16,931 16,702 16,940 17,176 9 United States Railway Association6 111 51 74 74 74 74 74 74 74 10 Federally sponsored agencies7 206,128 236,075 257,515 260,400 262,593 263,079 265,938 268,295 n.a. 11 Federal Home Loan Banks 48,930 65,085 74,447 81,558 83,081 85,997 87,133 87,146 86,891 12 Federal Home Loan Mortgage Corporation 6,793 10,270 11,926 12,276 12,818 12,801 13,548 14,007 n.a. 13 Federal National Mortgage Association 74,594 83,720 93,896 92,562 93,417 92,286 91,629 93,272 93,477 14 Farm Credit Banks 72,816 71,193 68,851 63,585 62,857 61,575 63,073 63,079 62,693 15 Student Loan Marketing Association8 3,402 5,745 8,395 10,419 10,420 10,420 10,555 10,791 11,102 MEMO 16 Federal Financing Bank debt 135,791 145,217 153,373 155,222 155,526 156,132 156,873 157,371 157,452 Lending to federal and federally sponsored 17 Export-Import Bank3 14,789 15,852 15,670 14,947 14,947 14,947 14,268 14,268 14,268 18 Postal Service6 1,154 1,087 1,690 1,604 1,604 1,604 2,854 2,854 2,854 19 Student Loan Marketing Association 5,000 5,000 5,000 5,000 5,000 5,000 4,970 4,970 4,970 20 Tennessee Valley Authority 13,245 13,710 14,622 14,942 14,937 15,306 15,077 15,515 15,751 21 United States Railway Association6 111 51 74 74 74 74 74 74 74 Other Lending10 22 Farmers Home Administration 55,266 58,971 64,234 64,924 65,174 65,274 65,374 65,374 65,374 23 Rural Electrification Administration 19,766 20,693 20,654 21,255 21,321 21,398 21,460 21,506 21,531 24 Other 26,460 29,853 31,429 32,476 32,469 32,529 32,796 32,810 32,630 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 • March 1987 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1986 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998833 11998844 11998855 Apr. May June July Aug. Sept. Oct. Nov. 1 All issues, new and refunding1 86,421 106,641 214,189 12,578 13,215 12,611 19,833 25,965 4,532 8,825 10,085 Type of issue 2 General obligation 21,566 26,485 52,622 5,459 7,115 6,326 6,531 5,931 1,267 2,104 1,427 3 Revenue 64,855 80,156 161,567 7,120 6,100 6,285 13,302 20,034 3,265 6,721 8,658 Type of issuer 4 State 7,140 9,129 13,004 1,956 2,825 1,705 2,879 2,121 9 697 111 5 Special district and statutory authority2 51,297 63,550 134,363 7,350 6,427 6,351 10,589 15,714 3,275 5,757 7,761 6 Municipalities, counties, townships 27,984 33,962 66,822 3,273 3,962 4,554 6,365 8,125 1,248 2,371 2,213 7 Issues for new capital, total 72,441 94,050 156,050 6,938 7,155 8,178 13,165 17,810 2,558 3,789 4,085 Use of proceeds 8 Education 8,099 7,553 16,658 1,706 1,827 1,694 2,800 2,926 558 928 1,486 9 Transportation 4,387 7,552 12,070 815 273 947 3,164 1,460 827 1,195 976 10 Utilities and conservation 13,588 17,844 26,852 4,554 3,450 1,583 4,425 6,292 1,365 2,396 3,239 11 Social welfare 26,910 29,928 63,181 579 1,424 1,518 1,186 2,554 812 2,098 2,635 12 Industrial aid 7,821 15,415 12,892 313 264 255 975 489 138 499 331 13 Other purposes 11,637 15,758 24,398 4,610 5,978 6,614 7,281 12,245 832 1,708 1,418 1. Par amounts of long-term issues based on date of sale. SOURCES. Securities Data Company beginning April 1986. Public Securities 2. Includes school districts beginning April 1986. Association for earlier data. This new data source began with the November BULLETIN. 1.46 NEW SECURITY ISSUES Corporations Millions of dollars 1986 Type of issue or issuer, or use 11998833 11998844 11998855 Apr. May June July Aug. Sept. Oct/ Nov. 1 All issues1 119,949 132,531 201,269 33,489 19,564 25,776 21,093 24,245 16,093 28,506 29,829 2 Bonds2 68,370 109,903 165,754 27,883 13,050 20,756 16,766 18,481 12,830 23,400 23,600 Type of offering 3 Public 47,244 73,579 119,559 27,883 13,050 20,756 16,766 18,481 12,830 23,400 23,600 4 Private placement 21,126 36,324 46,195 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 17,001 24,607 52,228 7,975 3,939 5,368 2,535 4,536 2,345 2,055 3,378 6 Commercial and miscellaneous 7,540 13,726 15,215 2,640 1,776 2,206 3,410 1,045 1,405 1,092 1,183 7 Transportation 3,833 4,694 5,743 614 427 250 497 550 375 170 0 8 Public utility 9,125 10,679 12,957 3,330 1,709 1,948 1,470 2,098 1,915 2,537 2,587 9 Communication 3,642 2,997 10,456 3,115 712 810 465 1,615 417 1,255 1,158 10 Real estate and financial 27,227 53,199 69,157 10,210 4,487 10,174 8,389 8,638 6,373 16,185 15,295 11 Stocks3 51,579 22,628 35,515 5,606 6,514 5,020 4,327 5,764 3,263 5,106 6,229 Type 12 Preferred 7,213 4,118 6,505 751 856 1,284 726 1,290 402 817 1,347 13 Common 44,366 18,510 29,010 4,855 5,658 3,736 3,601 4,474 2,861 4,289 4,882 Industry group 14 Manufacturing 14,135 4,054 5,700 1,434 1,827 1,132 746 982 250 570 2,251 15 Commercial and miscellaneous 13,112 6,277 9,149 910 953 421 917 803 1,009 1,271 587 16 Transportation 2,729 589 1,544 158 372 154 179 57 28 511 15 17 Public utility 5,001 1,624 1,966 165 346 406 305 208 174 410 185 18 Communication 1,822 419 978 27 74 140 107 379 0 59 104 19 Real estate and financial 14,780 9,665 16,178 2,912 2,942 2,767 2,073 3,335 1,802 2,285 3,087 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, SOURCES. IDD Information Services, Inc., Securities and Exchange Commisemployee stock plans, investment companies other than closed-end, intracorpo- sion and the Board of Governors of 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 1986 IItteemm 11998844 11998855 Apr. May June July Aug. Sept. Oct/ Nov. INVESTMENT COMPANIES1 1 Sales of own shares2 107,480 222,670 37,656 31,251 30,619 35,684 32,636 34,690 37,150 33,221 2 Redemptions of own shares3 77,032 132,440 21,699 16,706 18,921 21,508 20,102 21,338 20,782 20,734 3 Net sales 30,448 90,230 15,957 14,545 11,698 14,176 12,534 13,352 16,368 12,487 4 Assets4 137,126 251,695 329,684 343,926 356,040 360,050 387,547 381,872 402,644 416,969 5 Cash position5 12,181 20,607 29,599 28,184 28,083 28,080 28,682 29,540 30,826 29,395 6 Other 124,945 231,088 300,085 315,742 327,957 331,970 358,865 352,332 371,818 387,574 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. 1984 1985 1986 AAccccoouunntt 11998833 11998844 11998855 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 213.7 264.7 280.6 265.0 266.4 274.3 296.3 285.6 296.4 293.1 302.0 2 Profits before tax 207.6 235.7 223.1 221.9 213.8 213.8 229.2 235.8 222.5 227.7 240.4 3 Profits tax liability 77.2 95.4 91.8 87.8 87.8 87.1 95.8 96.4 95.7 99.0 104.4 4 Profits after tax 130.4 140.3 131.4 134.1 126.0 126.7 133.4 139.4 126.9 128.8 135.9 5 Dividends 71.5 78.3 81.6 80.1 80.9 81.4 81.6 82.5 85.2 87.5 88.8 6 Undistributed profits 58.8 62.0 49.8 54.0 45.1 45.3 51.8 57.0 41.7 41.2 47.2 7 Inventory valuation -10.9 -5.5 -.6 -1.6 -.5 1.6 6.1 -9.4 16.5 10.6 6.1 8 Capital consumption adjustment 17.0 34.5 58.1 44.7 53.2 58.9 61.0 59.2 57.3 54.8 55.5 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 • March 1987 1.49 NONFINANCIAL CORPORATIONS Assets and Liabilities Billions of dollars, except for ratio 1985 1986 AAccccoouunntt 11998800 11998811 11998822 11998833 11998844 Q1 Q2 Q3 Q4 Q1 1 Current assets 1,328.3 1,419.6 1,437.1 1,575.9 1,703.0 1,722.7 1,734.6 1,763.0 1,784.6 1,795.7 2 Cash 127.0 135.6 147.8 171.8 173.6 167.5 167.1 176.3 189.2 195.3 3 U.S. government securities 18.7 17.7 23.0 31.0 36.2 35.7 35.4 32.6 33.0 31.0 4 Notes and accounts receivable 507.5 532.5 517.4 583.0 633.1 650.3 654.1 661.0 671.5 663.4 5 Inventories 543.0 584.0 579.0 603.4 656.9 665.7 666.7 675.0 666.0 679.6 6 Other 132.1 149.7 169.8 186.7 203.2 203.5 211.2 218.0 224.9 226.3 7 Current liabilities 890.6 971.3 986.0 1,059.6 1,163.6 1,174.1 1,182.9 1,211.9 1,233.6 1,222.3 8 Notes and accounts payable 514.4 547.1 550.7 595.7 647.8 636.9 651.7 670.4 682.7 668.4 9 Other 376.2 424.1 435.3 463.9 515.8 537.1 531.2 541.5 550.9 553.9 10 Net working capital 437.8 448.3 451.1 516.3 539.5 548.6 551.7 551.1 551.0 573.4 11 MEMO: Current ratio1 1.492 1.462 1.458 1.487 1.464 1.467 1.466 1.455 1.447 1.469 1. Ratio of toted 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. 1985 1986 1987 IInndduussttrryy 11998844 11998855 1199886611 Q2 Q3 Q4 Q1 Q2 Q3 Q41 Ql' 1 Total nonfarm business 354.44 387.13 380.69 387.86 389.23 397.88 377.94 375.92 374.55 394.34 386.82 Manufacturing 2 Durable goods industries 66.24 73.27 69.% 74.34 72.99 75.47 68.01 68.33 69.31 74.17 67.86 3 Nondurable goods industries 72.58 80.21 74.81 79.91 81.48 82.79 76.02 73.35 69.89 80.00 73.36 Nonmanufacturing 4 Mining 16.86 15.88 11.24 16.56 15.89 15.25 12.99 1111..2222 10.15 10.62 1100..3366 Transportation 5 Railroad 6.79 7.08 6.72 7.38 7.79 6.74 6.22 6.77 7.31 6.60 66..3377 6 Air 3.56 4.79 6.04 3.71 5.17 6.07 6.58 5.77 5.69 6.12 7.22 7 Other 6.17 6.15 5.87 6.35 5.85 6.34 5.42 5.74 6.03 6.30 6.26 Public utilities 8 Electric 37.03 36.11 33.% 36.00 35.58 36.38 34.21 33.81 33.91 33.91 33.34 9 Gas and other 10.44 12.71 12.57 12.61 12.86 13.41 12.82 12.74 11.99 12.72 12.97 10 Commercial and other2 134.75 150.93 159.50 150.99 151.62 155.42 155.67 158.18 160.25 163.91 169.08 •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 1985 1986 AAccccoouunntt 11998822 11998833 11998844 Ql Q2 Q3 Q4 Ql Q2 03 ASSETS Accounts receivable, gross 1 Consumer 78.1 87.4 96.7 99.1 106.0 116.4 120.8 125.5 134.7 146.7 2 Business 101.4 113.4 135.2 142.1 144.6 141.4 152.8 159.7 160.3 152.7 Real estate 20.2 22.5 26.3 27.2 28.4 29.0 30.4 31.5 32.4 33.8 4 Total 199.7 223.4 258.3 268.5 279.0 286.5 304.0 316.7 327.5 333.2 Less: Reserves for unearned income 31.9 33.0 36.5 36.6 38.6 41.0 40.9 41.3 41.8 43.6 6 Reserves for losses 3.5 4.0 4.4 4.9 4.8 4.9 5.0 5.1 5.2 5.5 7 Accounts receivable, net 164.3 186.4 217.3 227.0 235.6 240.6 258.1 270.3 280.4 284.1 8 All other 30.7 34.0 35.4 35.9 39.5 46.3 46.8 50.6 52.1 63.1 9 Total assets 195.0 220.4 252.7 262.9 275.2 286.9 304.9 321.0 332.5 347.2 LIABILITIES 10 Bank loans 18.3 18.7 21.3 19.8 18.5 18.2 21.0 20.4 22.9 25.3 11 Commercial paper 51.1 59.7 72.5 79.1 82.6 93.6 96.9 102.0 106.4 110.6 Debt 12 Other short-term 12.7 13.9 16.2 16.8 16.6 16.6 17.2 18.5 20.9 21.6 n Long-term 64.4 68.1 77.2 78.3 85.7 86.4 93.0 100.0 101.8 105.3 14 All other liabilities 21.2 30.1 33.1 35.4 36.9 36.6 39.6 41.4 40.4 43.2 15 Capital, surplus, and undivided profits 27.4 29.8 32.3 33.5 34.8 35.7 37.1 38.8 40.2 41.3 16 Total liabilities and capital 195.0 220.4 252.7 262.9 275.2 286.9 304.9 321.0 332.5 347.2 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 1986 1986 1986 NNNooovvv... 333000,,, 111999888666111 Sept. Oct. Nov. Sept. Oct. Nov. Sept. Oct. Nov. 1 Total 160,412 -6,552 5,751 1,197 26,662 32,469 26,641 33,214 26,718 25,444 Retail financing of installment sales 2 Automotive (commercial vehicles) 17,866 1,290 281 -422 2,299 1,359 651 1,009 1,078 1,073 3 Business, industrial, and farm equipment 20,242 -212 11 168 986 965 1,195 1,197 954 1,027 Wholesale financing 4 Automotive 22,847 -9,172 4,592 1,194 7,536 13,818 9,895 16,708 9,226 8,701 5 Equipment 4,814 36 134 149 829 715 883 793 581 734 6 All other 8,010 113 149 315 1,881 2,043 1,857 1,768 1,893 1,542 Leasing 7 Automotive 16,595 549 248 -90 1,075 1,018 766 526 770 856 8 Equipment 40,342 286 -10 -237 1,574 1,770 1,290 1,289 1,780 1,527 9 Loans on commercial accounts receivable and factored commercial accounts receivable 16,468 539 -267 -125 9,298 9,201 8,806 8,760 9,468 8,931 10 All other business credit 13,228 19 613 245 1,183 1,580 1,298 1,164 966 1,053 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 • March 1987 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1986 IItteemm 11998844 11998855 11998866 June July Aug. Sept. Oct. Nov/ Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 96.8 104.1 117.9 122.1 115.7 117.9 124.0 127.5 124.2 122.8 2 Amount of loan (thousands of dollars) 73.7 77.4 86.1 88.0 83.4 84.8 90.4 93.9 92.5 91.8 3 Loan/price ratio (percent) 78.7 77.1 75.2 74.9 73.9 74.5 75.2 75.6 76.2 76.4 4 Maturity (years) 27.8 26.9 26.6 26.6 26.2 26.5 27.1 27.9 27.3 27.3 5 Fees and charges (percent of loan amount)2 2.64 2.53 2.48 2.40 2.35 2.40 2.49 2.66 2.64 2.49 6 Contract rate (percent per annum) 11.87 11.12 9.82 9.74 9.89 9.84 9.74 9.57 9.45 9.28 Yield (percent per annum) 7 FHLBB series5 12.37 11.58 10.26 10.15 10.30 10.26 10.17 10.02 9.91 9.70 8 HUD series4 13.80 12.28 10.07 10.38 10.28 9.88 9.96 9.89 9.47 9.33 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 13.81 12.24 9.91 9.98 10.01 9.80 9.90 9.80 9.26 9.21 10 GNMA securities6 13.13 11.61 9.30 9.57 9.31 9.11 9.17 9.06 8.83 8.62 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 83,339 94,574 98,048 97,295 97,255 96,675 97,717 98,402 98,210 97,895 12 FHA/VA-insured 35,148 34,244 29,683 31,241 30,766 28,451 26,658 25,435 24,300 23,121 13 Conventional 48,191 60,331 68,365 66,054 66,489 68,224 71,059 72,967 73,910 74,774 Mortgage transactions (during period) 14 Purchases 16,721 21,510 30.826 3,000 3,343 3,800 4,649 3,784 2,549 2,336 15 Sales 978 1,301 n.a. n.a. n.a. n.a. n.a. n.a. n a. n.a. Mortgage commitments1 16 Contracted (during period) 21,007 20,155 32,987 3,049 3,270 3,840 4,248 2,375 1,811 1,272 17 Outstanding (end of period) 6,384 3,402 3,386 7,862 7,706 7,671 7,252 5,740 4,625 3,386 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 18 Total 9,283 12,399 14,194 13,795 14,010 13,359 12,905 19 FHA/VA 910 841 742 692 739 729 722 20 Conventional 8,373 11.558 13,452 13,103 13,271 12,630 12,183 Mortgage transactions (during period) 21 Purchases 21,886 44,012 n a. 10,505 8,518 10,458 12,486 11,566 n a. n a. 22 Sales 18,506 38,905 9,588 8,113 10,132 13,072 11,417 Mortgage commitments9 23 Contracted (during period) 32,603 48,989 10,338 7,863 13,707 10,658 9,356 24 Outstanding (end of period) 13,318 16,613 n.a. n.a. n.a. n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associamajor institutional lender groups; compiled by the Federal Home Loan Bank tion guaranteed, mortgage-backed, fully modified pass-through securities, assum- Board in cooperation with the Federal Deposit Insurance Corporation. ing prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the 2. Includes all fees, commissions, discounts, and "points" paid (by the prevailing ceiling rate. Monthly figures are averages of Friday figures from the borrower or the seller) to obtain a loan. Wall Street Journal. 3. Average effective interest rates on loans closed, assuming prepayment at the 1. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. Based on transactions on first day of subsequent month. Large securities swap programs, while the corresponding data for FNMA exclude swap monthly movements in average yields may reflect market adjustments to changes activity. in maximum permissable contract rates. 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 1985 1986 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998833 11998844 11998855 Q3' Q4' Ql Q2 Q3 1 All holders 1,814,918' 2,036,158' 2,268,613' 2,202,635 2,268,613 2,317,838 2,385,606 2,467,229 ? 1- to 4-family 1,190,884' 1,320,444' 1,468,463' 1,427,431 1,468,463 1,496,572 1,545,939 1,604,434 3 Multifamily 160,805 185,414 213,817 203,626 213,817 221,508 228,604 236,798 4 Commercial 350,389 418,300 480,718 463,272 480,718 495,865 509,479 525,829 5 112,840 112,000 105,615 108,306 105,615 103,893 101,584 100,168 6 Selected financial institutions 1,130,781 1,272,206 1,392,084 1,357,483 1,392,084 1,410,541 1,437,054 1,466,329 7 Commercial banks1 330,521 379,498 429,386 415,599 429,386 441,293 456,146 474,724 8 1- to 4-family 182,514 196,163 213,624 209,119 213,624 216,580 222,144 229,520 9 Multifamily 18,410 20,264 23,374 22,254 23,374 25,310 26,306 28,251 10 Commercial 120,210 152,894 181,031 173,190 181,031 187,606 195,459 204,481 11 Farm 9,387 10,177 11,357 11,036 11,357 11,797 12,237 12,472 1? Savings banks 131,940 154,441 177,263 174,427 177,263 188,154 203,238 214,156 13 1- to 4-family 93,649 107,302 121,879 119,952 121,879 131,381 142,215 148,010 14 Multifamily 17,247 19,817 23,329 22,604 23,329 23,980 26,549 28,467 15 Commercial 21,016 27,291 31,973 31,757 31,973 32,707 34,370 37,590 16 Farm 28 31 82 114 82 86 104 89 17 Savings and loan associations 494,789 555,277 583,236 573,682 583,236 574,732 565,205 558,409 18 1- to 4-family 387,924 421,489 432,422 425,596 432,422 420,073 413,952 408,584 19 Multifamily 44,333 55,750 66,410 62,390 66,410 67,140 65,966 65,902 70 Commercial 62,403 77,605 83,798 85,061 83,798 86,860 84,755 83,409 71 Farm 129 433 606 635 606 659 532 514 ?? Life insurance companies 150,999 156,699 171,797 164,760 171,797 174,823 180,041 185,269 73 1- to 4-family 15,319 14,120 12,381 13,454 12,381 12,605 12,608 12,927 74 Multifamily 19,107 18,938 19,894 19,074 19,894 20,009 20,181 20,709 75 Commercial 103,831 111,175 127,670 120,183 127,670 130,569 135,924 140,213 26 Farm 12,742 12,466 11,852 12,049 11,852 11,640 11,328 11,420 27 Finance companies2 22,532 26,291 30,402 29,015 30,402 31,539 32,424 33,771 28 Federal and related agencies 148,328 158,993 166,928 166,248 166,928 165,041 161,398 159,505 29 Government National Mortgage Association 3,395 2,301 1,473 1,640 1,473 1,533 876 887 30 1- to 4-family 630 585 539 552 539 527 49 48 31 Multifamily 2,765 1,716 934 1,088 934 1,006 827 839 37 Farmers Home Administration 2,141 1,276 733 577 733 704 570 457 33 1- to 4-family 1,159 213 183 185 183 217 146 132 34 Multifamily 173 119 113 139 113 33 66 57 35 Commercial 409 497 159 72 159 217 111 115 36 Farm 400 447 278 181 278 237 247 153 37 Federal Housing and Veterans Administration 4,894 4,816 4,920 4,918 4,920 4,964 5,094 4,966 38 1- to 4-family 1,893 2,048 2,254 2,251 2,254 2,309 2,449 2,331 39 Multifamily 3,001 2,768 2,666 2,667 2,666 2,655 2,645 2,635 40 Federal National Mortgage Association 78,256 87,940 98,282 96,769 98,282 98,795 97,295 97,717 41 1- to 4-family 73,045 82,175 91,966 90,590 91,966 92,315 90,460 90,508 42 Multifamily 5,211 5,765 6,316 6,179 6,316 6,480 6,835 7,209 43 Federal Land Banks 52,010 52,261 47,498 49,255 47,498 45,422 43,369 42,119 44 1- to 4-family 3,081 3,074 2,798 2,895 2,798 2,673 2,552 2,478 45 Farm 48,929 49,187 44,700 46,360 44,700 42,749 40,817 39,641 46 Federal Home Loan Mortgage Corporation 7,632 10,399 14,022 13,089 14,022 13,623 14,194 13,359 47 1- to 4-family 7,559 9,654 11,881 11,457 11,881 12,231 11,890 11,127 48 Multifamily 73 745 2,141 1,632 2,141 1,392 2,304 2,232 49 Mortgage pools or trusts3 285,073 332,057 415,042 388,948 415,042 440,701 475,615 522,721 50 Government National Mortgage Association 159,850 179,981 212,145 201,026 212,145 220,348 229,204 241,230 51 1- to 4-family 155,950 175,589 207,198 196,198 207,198 215,148 223,838 235,664 5? Multifamily 3,900 4,392 4,947 4,828 4,947 5,200 5,366 5,566 53 Federal Home Loan Mortgage Corporation 57,895 70,822 100,387 91,915 100,387 110,337 125,903 146,871 54 1- to 4-family 57,273 70,253 99,515 90,997 99,515 108,020 123,676 143,734 55 Multifamily 622 569 872 918 872 2,317 2,227 3,137 56 Federal National Mortgage Association 25,121 36,215 54,987 48,769 54,987 62,310 72,377 86,359 57 1- to 4-family 25,121 35,965 54,036 47,857 54,036 61,117 71,153 85,171 58 Multifamily n.a. 250 951 912 951 1,193 1,224 1,188 59 Farmers Home Administration 42,207 45,039 47,523 47,238 47,523 47,706 48,131 48,261 60 1- to 4-family 20,404 21,813 22,186 22,090 22,186 22,082 21,987 21,782 61 Multifamily 5,090 5,841 6,675 6,415 6,675 6,943 7,170 7,353 6? Commercial 7,351 7,559 8,190 8,192 8,190 8,150 8,347 8,409 63 Farm 9,362 9,826 10,472 10,541 10,472 10,531 10,627 10,717 64 Individuals and others4 250,736' 272,902' 294,559' 289,956 294,559 301,555 311,539 318,674 65 1- to 4-family 142,831' 153,71c 165,199' 165,223 165,199 167,755 174,396 178,647 66 Multifamily 40,873 48,480 55,195 52,526 55,195 57,850 60,938 63,253 67 Commercial 35,169 41,279 47,897 44,817 47,897 49,756 50,513 51,612 68 Farm 31,863 29,433 26,268 27,390 26,268 26,194 25,692 25,162 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. Assumed to be entirely 1- to 4-family loans. pension funds, credit unions, and other U.S. agencies. 3. Outstanding principal balances of mortgage pools backing securities insured NOTE. Based on data from various institutional and governmental sources, with or guaranteed by the agency indicated. some quarters estimated in part by the Federal Reserve. Multifamily debt refers to 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 • March 1987 1.55 CONSUMER INSTALLMENT CREDIT14 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars 1986 IUCI, dnu iypc UI cicun 11998844 11998855 Mar. Apr. May June July Aug. Sept. Oct/ Nov. Amounts outstanding (end of period) 1 Total 453,580 535,098 550,939 555,810 562,267 567,653 573,216 576,609 584,334 591,542 595,560 By major holder 2 Commercial banks 209,158 240,796 245,172 247,498 248,681 249,753 251,197 251,908 253,329 255,805 258,696 3 Finance companies2 96,126 120,095 127,422 128,728 131,172 134,933 137,197 138,938 144,559 146,862 146,218 4 Credit unions 66,544 75,127 76,953 77,957 78,474 79,095 80,130 80,622 81,374 82,500 83,787 3 Retailers3 37,061 39,187 39,844 39,826 40,139 40,076 40,251 40,351 40,445 40,641 40,716 6 Savings institutions 40,330 55,555 57,573 58,024 60,247 60,352 61,051 61,421 61,331 62,414 62,867 / Gasoline companies 4,361 4,337 3,975 3,777 3,554 3,445 3,389 3,368 3,295 3,320 3,277 By major type of credit 8 Automobile 173,122 206,482 214,361 215,814 218,965 222,606 226,234 228,814 236,280 240,548 241,392 9 Commercial banks 83,900 92,764 93,377 93,013 93,157 93,261 94,014 94,686 95,842 97,359 98,273 10 Credit unions 28,614 30,577 31,320 31,728 31,939 32,191 32,613 32,813 33,119 33,577 34,101 11 Finance companies 54,663 73,391 79,416 80,685 83,221 86,520 88,862 90,578 96,598 98,695 98,016 12 Savings institutions 5,945 9,750 10,248 10,386 10,648 10,634 10,745 10,736 10,721 10,916 11,002 13 Revolving 98,514 118,296 122,131 123,442 124,545 124,720 125,577 125,915 126,012 126,514 128,102 14 Commercial banks 58,145 73,893 77,021 78,421 79,151 79,397 79,998 80,133 80,160 80,273 81,709 13 Retailers 33,064 34,560 35,188 35,170 35,449 35,390 35,542 35,639 35,688 35,861 35,918 16 Gasoline companies 4,361 4,337 3,975 3,777 3,554 3,445 3,389 3,368 3,295 3,320 3,277 17 Savings institutions 2,944 5,506 5,947 6,075 6,392 6,488 6,649 6,775 6,869 7,059 7,198 18 Mobile home 24,184 25,461 25,584 25,513 25,560 25,479 25,398 25,215 24,958 24,995 25,029 19 Commercial banks 9,623 9,578 9,348 9,264 9,215 9,196 9,156 9,086 9,071 9,075 9,095 20 Finance companies 9,161 9,116 9,327 9,286 9,115 9,077 8,989 8,882 8,681 8,611 8,598 21 Savings institutions 5,400 6,767 6,909 6,963 7,230 7,206 7,253 7,248 7,206 7,309 7,337 22 Other 157,760 184,859 188,863 191,041 193,197 194,847 196,007 196,665 197,084 199,485 201,036 23 Commercial banks 57,490 64,561 65,427 66,800 67,158 67,898 68,030 68,003 68,256 69,098 69,618 24 Finance companies 32,302 37,588 38,678 38,757 38,836 39,336 39,345 39,479 39,281 39,556 39,604 23 Credit unions 37,930 44,550 45,633 46,228 46,535 46,903 47,517 47,809 48,255 48,922 49,686 26 Retailers 3,997 4,627 4,656 4,656 4,690 4,686 4,710 4,712 4,758 4,780 4,798 27 Savings institutions 26,041 33,533 34,469 34,600 35,977 36,024 36,405 36,662 36,535 37,130 37,331 Net change (during period) 28 Total 77,341 81,518 3,087 4,871 6,457 5,386 5,563 3,393 7,725 7,208 4,018 By major holder 29 Commercial banks 39,819 31,638 411 2,326 1,183 1,072 1,444 711 1,421 2,476 2,891 30 Finance companies2 9,961 23,969 1,421 1,306 2,444 3,761 2,264 1,741 5,621 2,303 -644 31 Credit unions 13,456 8,583 522 1,004 517 621 1,035 492 752 1,126 1,287 32 Retailers3 2,900 2,126 347 -18 313 -63 175 100 94 196 75 33 Savings institutions 11,038 15,225 525 451 2,223 105 699 370 -90 1,083 453 34 Gasoline companies 167 -24 -139 -198 -223 -109 -56 -21 -73 25 -43 By major type of credit 35 Automobile 27,214 33,360 1,019 1,453 3,151 3,641 3,628 2,580 7,466 4,268 844 36 Commercial banks 16,352 8,864 -451 -364 144 104 753 672 1,156 1,517 914 37 Credit unions 3,223 1,963 213 408 211 252 422 200 306 458 524 38 Finance companies 4,576 18,728 1,106 1,269 2,536 3,299 2,342 1,716 6,020 2,097 -679 39 Savings institutions 3,063 3,805 151 138 262 -14 111 -9 -15 195 86 40 Revolving 20,145 19,782 1,407 1,311 1,103 175 857 338 97 502 1,588 41 Commercial banks 15,949 15,748 1,068 1,400 730 246 601 135 27 113 1,436 42 Retailers 2,512 1,496 345 -18 279 -59 152 97 49 173 57 43 Gasoline companies 167 -24 -139 -198 -223 -109 -56 -21 -73 25 -43 44 Savings institutions 1,517 2,562 134 128 317 96 161 126 94 190 139 45 Mobile home 1,990 1,277 11 -71 47 -81 -81 -183 -257 37 34 46 Commercial banks -199 -45 -218 -84 -49 -19 -40 -70 -15 4 20 47 Finance companies 544 -45 166 -41 -171 -38 -88 -107 -201 -70 -13 48 Savings institutions 1,645 1,367 63 54 267 -24 47 -5 -42 103 28 49 Other 27,992 27,099 651 2,178 2,156 1,650 1,160 658 419 2,401 1,551 50 Commercial banks 7,717 7,071 13 1,373 358 740 132 -27 253 842 520 31 Finance companies 4,841 5,286 148 79 79 500 9 134 -198 275 48 32 Credit unions 10,233 6,620 310 595 307 368 614 292 446 667 764 53 Retailers 388 630 3 0 34 -4 24 2 46 22 18 34 Savings institutions 4,813 7,492 178 131 1,377 47 381 257 -127 595 201 1. The Board's series cover most short- and intermediate-term credit extended 2. More detail for finance companies is available in the G.20 statistical release, to individuals that is scheduled to be repaid (or has the option of repayment) in 3. Excludes 30-day charge credit held by travel and entertainment companies, two or more installments. 4. All data have been revised. 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 1986 IItteemm 11998833 11998844 11998855 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks' 1 48-month new car2 13.92 13.71 12.91 11.45 n.a. n.a. 11.00 n.a. n.a. 10.58 2 24-month personal 16.68 16.47 15.94 14.89 n.a. n.a. 14.70 n.a. n.a. 14.19 3 120-month mobile home2 16.08 15.58 14.96 13.97 n.a. n.a. 13.95 n.a. n.a. 13.49 4 Credit card 18.78 18.77 18.69 18.32 n.a. n.a. 18.15 n.a. n.a. 18.09 Auto finance companies 5 New car 12.58 14.62 11.98 9.49 9.35 9.31 9.29 5.40 6.12 11.83 6 Used car 18.74 17.85 17.59 16.56 16.06 15.83 15.56 15.23 15.17 15.20 OTHER TERMS3 Maturity (months) 7 New car 45.9 48.3 51.5 49.4 49.5 49.9 50.4 44.5 45.3 53.4 8 Used car 37.9 39.7 41.4 42.5 42.7 42.8 42.9 42.5 42.2 42.6 Loan-to-value ratio 9 New car 86 88 91 89 89 89 90 92 92 93 10 Used car 92 92 94 97 97 97 97 98 97 97 Amount financed (dollars) It New car 8,787 9,333 9,915 10,521 10,608 10,748 10,756 11,162 11,340 11,160 12 Used car 5,033 5,691 6,089 6,393 6,611 6,614 6,569 6,763 6,746 6,946 1. Data for midmonth of quarter only. 3. At auto finance companies. 2. Before 1983 the maturity for new car loans was 36 months, and for mobile NOTE. These data also appear in the Board's G.19 (421) release. For address, home loans was 84 months. see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • March 1987 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1983 1984 1985 1986 irdnsaction category, sector 11998800 11998811 11998822 11998844 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 344.9 375.8 387.4 548.8 756.3 869.3 592.2 727.8 784.8 732.6 1,006.1 705.4 By sector and instrument 2 U.S. government 79.2 87.4 161.3 186.6 198.8 223.6 156.1 181.3 216.3 201.8 245.5 211.3 i Treasury securities 79.8 87.8 162.1 186.7 199.0 223.7 156.3 181.5 216.4 201.9 245.5 211.4 4 Agency issues and mortgages -.6 -.5 -.9 -.1 -.2 -.1 -.1 -.2 -.1 -.1 -.1 -.1 5 Private domestic nonfinancial sectors 265.7 288.5 226.2 362.2 557.5 645.7 436.0 546.5 568.5 530.8 760.6 494.1 6 Debt capital instruments 189.1 155.5 148.3 252.8 314.0 461.7 278.0 298.4 329.6 355.4 568.0 384.5 7 Tax-exempt obligations 30.3 23.4 44.2 53.7 50.4 152.4 51.8 42.8 58.0 67.5 237.3 19.9 8 Corporate bonds 27.7 22.8 18.7 16.0 46.1 73.9 11.5 31.2 61.1 72.7 75.1 129.1 y Mortgages 131.2 109.3 85.4 183.0 217.5 235.4 214.7 224.5 210.5 215.2 255.7 235.4 10 Home mortgages 94.2 72.2 50.5 117.1 129.9 150.3 135.1 135.2 124.7 133.1 167.5 153.1 n Multifamily residential 7.6 4.8 5.4 14.1 25.1 29.2 20.4 27.5 22.7 24.6 33.7 29.0 12 Commercial 19.2 22.2 25.2 49.0 63.3 62.4 55.3 62.9 63.7 60.3 64.4 60.6 13 Farm 10.2 10.0 4.2 2.8 -.8 -6.4 3.9 -1.1 -.5 -2.8 -10.0 -7.3 14 Other debt instruments 76.6 133.0 77.9 109.5 243.5 184.0 158.0 248.1 238.9 175.4 192.6 109.7 13 Consumer credit 4.5 22.6 17.7 56.8 95.0 96.6 75.1 98.7 91.3 97.3 95.9 75.3 16 Bank loans n.e.c 37.8 57.0 52.9 25.8 80.1 41.3 42.1 91.9 68.4 24.9 57.7 22.1 17 Open market paper 4.0 14.7 -6.1 -.8 21.7 14.6 4.3 24.8 18.7 12.3 16.9 -15.7 18 Other 30.3 38.7 13.4 27.7 46.6 31.4 36.5 32.7 60.5 40.9 22.0 28.1 19 By borrowing sector 265.7 288.5 226.2 362.2 557.5 645.7 436.0 546.5 568.5 530.8 760.6 494.1 20 State and local governments 17.2 6.8 21.5 34.0 27.4 107.8 33.7 25.2 29.6 56.8 158.7 40.7 21 Households 120.0 121.4 88.4 188.0 239.5 295.0 223.4 232.8 246.2 253.6 336.4 228.5 22 Farm 15.2 16.6 6.8 4.3 .1 -13.6 6.7 -.4 .5 -5.9 -21.3 -15.1 23 Nonfarm noncorporate 31.8 38.5 40.2 76.6 97.1 92.8 91.7 101.4 92.7 85.6 99.9 95.2 24 Corporate 81.5 105.2 69.2 59.3 193.4 163.7 80.6 187.4 199.5 140.7 186.8 144.8 25 Foreign net borrowing in United States 23.8 23.5 16.0 17.4 6.1 1.7 15.5 35.5 -23.3 -4.1 7.5 24.3 26 Bonds .8 5.4 6.7 3.1 1.3 4.0 2.3 1.1 1.5 5.5 2.6 7.1 27 Bank loans n.e.c 11.8 3.0 -5.5 3.6 -6.6 -2.8 -3.4 -2.2 -11.1 -6.1 .4 1.4 28 Open market paper 2.4 3.9 1.9 6.5 6.2 6.2 6.0 18.0 -5.6 4.2 8.2 20.6 29 U.S. government loans 8.8 11.1 13.0 4.1 5.3 -5.7 10.7 18.7 -8.1 -7.8 -3.6 -4.8 30 Total domestic plus foreign 368.7 399.3 403.4 566.2 762.4 871.0 607.7 763.3 761.5 728.4 1,013.5 729.7 Financial sectors 31 Total net borrowing by financial sectors 65.4 101.9 90.1 94.0 139.0 186.9 123.2 134.2 143.8 154.8 218.9 189.0 By instrument 32 U.S. government related 44.8 47.4 64.9 67.8 74.9 101.5 68.8 69.8 80.0 92.9 110.2 129.5 33 Sponsored credit agency securities 24.4 30.5 14.9 1.4 30.4 20.6 8.1 29.1 31.8 25.3 15.9 4.4 34 Mortgage pool securities 19.2 15.0 49.5 66.4 44.4 79.9 60.7 40.7 48.2 67.6 92.1 124.3 3<t 1.2 1.9 .4 1.1 2 2 g 36 Private financial sectors 20.6 54.5 25.2 26.2 64.1 85.3 54.3 64.4 63.8 61.9 108.8 59.6 37 Corporate bonds 1.6 4.4 12.5 12.1 23.3 36.5 13.1 17.3 29.3 35.3 37.7 28.7 38 Mortgages * * .1 * .4 .1 * .4 .4 * .1 .6 39 Bank loans n.e.c -1.0 1.2 1.9 -.1 .7 2.6 2.2 -.1 1.4 .9 4.2 2.4 40 Open market paper 12.9 32.7 9.9 21.3 24.1 32.0 40.9 31.1 17.0 13.9 50.1 14.4 41 Loans from Federal Home Loan Banks 7.1 16.2 .8 -7.0 15.7 14.2 -1.8 15.7 15.7 11.7 16.7 13.5 By sector 42 Sponsored credit agencies 25.6 32.4 15.3 1.4 30.4 21.7 8.1 29.1 31.8 25.3 18.1 5.2 43 Mortgage pools 19.2 15.0 49.5 66.4 44.4 79.9 60.7 40.7 48.2 67.6 92.1 124.3 44 Private financial sectors 20.6 54.5 25.2 26.2 64.1 85.3 54.3 64.4 63.8 61.9 108.8 59.6 45 Commercial banks 8.3 11.6 11.7 5.0 7.3 -4.9 17.1 15.4 -.9 -9.2 -.6 -6.7 46 Bank affiliates 6.7 9.2 6.8 12.1 15.6 14.5 14.9 23.7 7.5 13.7 15.3 1.7 47 Savings and loan associations 7.4 15.5 2.5 -2.1 22.7 22.3 4.6 20.2 25.1 12.1 32.6 21.3 48 Finance companies -1.3 18.5 4.3 11.4 17.8 52.8 18.0 4.3 31.3 44.8 60.9 42.4 49 REITs -.5 -.2 * -.2 .8 .5 -.3 .8 .8 .5 .5 .9 All sectors 50 Total net borrowing 434.1 501.3 493.5 660.2 901.4 1057.8 730.8 897.5 905.3 833.3 1,232.4 918.7 51 U.S. government securities 122.9 133.0 225.9 254.4 273.8 324.2 225.0 251.2 296.4 294.8 353.5 340.0 52 State and local obligations 30.3 23.4 44.2 53.7 50.4 152.4 51.8 42.8 58.0 67.5 237.3 19.9 53 Corporate and foreign bonds 30.1 32.6 37.8 31.2 70.7 114.4 26.8 49.6 91.9 113.5 115.3 164.9 54 Mortgages 131.1 109.2 85.4 183.0 217.8 235.4 214.6 224.8 210.8 215.2 255.7 236.0 55 Consumer credit 4.5 22.6 17.7 56.8 95.0 96.6 75.1 98.7 91.3 97.3 95.9 75.3 56 Bank loans n.e.c 48.5 61.2 49.3 29.3 74.2 41.0 40.8 89.6 58.8 19.8 62.3 25.9 57 Open market paper 19.3 51.3 5.7 26.9 52.0 52.8 51.2 73.8 30.1 30.4 75.2 19.3 58 Other loans 47.5 68.0 27.6 24.8 67.6 41.0 45.4 67.1 68.1 44.8 37.3 37.5 External corporate equity funds raised in United States 59 Total new share issues 21.2 -3.3 33.6 67.0 -31.1 37.5 52.1 -40.1 -22.2 33.3 41.6 153.4 60 Mutual funds 4.5 6.0 16.8 32.1 38.0 103.4 28.7 39.3 36.6 93.6 113.1 203.9 61 All other 16.8 -9.3 16.8 34.9 -69.1 -65.9 23.4 -79.4 -58.8 -60.4 -71.5 -50.4 62 Nonfinancial corporations 12.9 -11.5 11.4 28.3 -77.0 -81.6 18.4 -84.5 -69.4 -75.7 -87.5 -67.5 63 Financial corporations 1.8 1.9 4.0 2.7 6.7 11.7 2.9 5.9 7.6 11.0 12.4 8.6 64 Foreign shares purchased in United States 2.1 .3 1.5 3.9 1.2 4.0 2.1 -.7 3.0 4.3 3.6 8.5 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. 1983 1984 1985 1986 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998800 11998811 11998822 11998833 11998844 11998855 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to domestic nonfinancial sectors 344.9 375.8 387.4 548.8 756.3 869.3 592.2 727.8 784.8 732.6 1,006.1 705.4 By public agencies and foreign 7 Total net advances 94.9 104.4 115.4 111155..33 154.6 220033..33 107.9 113322..55 117766..66 220011..88 220044..99 226699..99 3 U.S. government securities 15.8 17.1 22.7 27.6 36.0 47.2 20.0 26.8 45.2 53.1 41.3 81.5 4 Residential mortgages 31.7 23.5 61.0 76.1 56.5 94.6 71.5 52.7 60.2 85.6 103.7 121.0 5 FHLB advances to savings and loans 7.1 16.2 .8 -7.0 15.7 14.2 -1.8 15.7 15.7 11.7 16.7 13.5 6 Other loans and securities 40.2 47.7 30.8 18.6 46.5 47.3 18.2 37.5 55.5 51.4 43.2 53.9 Total advanced, by sector 7 U.S. government 23.7 24.0 15.9 9.7 17.4 17.8 9.7 9.0 25.7 28.8 6.7 14.6 8 Sponsored credit agencies 45.6 48.2 65.5 69.8 73.3 101.5 70.5 74.0 72.5 98.2 104.9 127.3 9 Monetary authorities 4.5 9.2 9.8 10.9 8.4 21.6 12.4 8.8 8.0 23.7 19.5 9.8 10 Foreign 21.1 23.0 24.1 24.9 55.5 62.4 15.3 40.7 70.4 51.0 73.8 118.2 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 44.8 47.4 64.9 67.8 74.9 101.5 68.8 69.8 8800..00 92.9 110.2 112299..55 12 Foreign 23.8 23.5 16.0 17.4 6.1 1.7 15.5 35.5 -23.3 -4.1 7.5 24.3 Private domestic funds advanced 13 Total net advances 318.7 342.3 352.9 518.7 682.7 769.2 568.6 700.5 664.9 619.6 918.8 589.3 14 U.S. government securities 107.1 115.9 203.1 226.9 237.8 277.0 205.0 224.4 251.2 241.7 312.2 258.5 15 State and local obligations 30.3 23.4 44.2 53.7 50.4 152.4 51.8 42.8 58.0 67.5 237.3 19.9 16 Corporate and foreign bonds 20.3 19.8 14.8 14.6 32.6 41.2 9.1 25.6 39.6 49.7 32.7 93.5 17 Residential mortgages 70.0 53.5 -5.3 55.0 98.5 84.8 84.0 109.9 87.0 72.0 97.5 61.1 18 Other mortgages and loans 98.1 145.9 96.9 161.5 279.1 228.1 217.0 313.6 244.7 200.4 255.9 169.8 19 LESS: Federal Home Loan Bank advances 7.1 16.2 .8 -7.0 15.7 14.2 -1.8 15.7 15.7 11.7 16.7 13.5 Private financial intermediation 20 Credit market funds advanced by private financial institutions 286.2 320.2 261.9 391.9 550.5 554.4 449.3 581.8 519.1 471.3 637.4 573.0 71 Commercial banking 107.6 106.5 110.2 144.3 168.9 186.3 168.8 184.2 153.5 133.8 238.8 106.9 77 Savings institutions 51.3 26.2 21.8 135.6 149.2 83.4 143.9 173.5 124.9 63.0 103.9 102.0 23 Insurance and pension funds 93.2 93.5 86.2 97.8 124.0 141.0 105.7 144.5 103.5 121.8 160.1 130.9 24 Other finance 34.0 94.0 43.7 14.1 108.3 143.6 30.9 79.5 137.2 152.7 134.5 233.2 75 Sources of funds 286.2 320.2 261.9 391.9 550.5 554.4 449.3 581.8 519.1 471.3 637.4 573.0 76 Private domestic deposits and RPs 170.8 214.5 195.2 212.2 317.6 204.8 235.5 300.2 334.9 203.0 206.6 222.9 27 Credit market borrowing 20.6 54.5 25.2 26.2 64.1 85.3 54.3 64.4 63.8 61.9 108.8 59.6 78 Other sources 94.8 51.2 41.5 153.4 168.8 264.2 159.5 217.2 120.4 206.5 322.0 290.6 29 Foreign funds -25.1 -23.7 -31.4 16.3 5.4 17.7 46.2 3.0 7.8 11.2 24.3 .2 30 Treasury balances -2.6 -1.1 6.1 -5.3 4.0 10.3 -22.4 -.1 8.2 14.4 6.1 -5.5 31 Insurance and pension reserves 88.9 89.6 92.5 110.6 112.5 107.0 122.4 146.5 78.5 97.4 116.6 109.2 32 Other, net 33.6 -13.6 -25.7 31.8 46.8 129.2 13.3 67.8 25.9 83.5 175.0 186.7 Private domestic nonfinancial investors 33 Direct lending in credit markets 53.1 76.6 116.3 153.0 196.4 300.2 173.6 183.1 209.6 210.2 390.2 75.9 34 U.S. government securities 34.2 37.1 69.9 95.5 132.9 150.9 87.3 142.2 123.6 130.8 171.0 50.5 35 State and local obligations 7.0 11.1 25.0 39.0 29.6 59.2 37.7 25.0 34.3 20.5 98.0 -19.4 36 Corporate and foreign bonds -11.7 -4.0 2.0 -12.7 -3.4 13.2 -4.5 -26.8 19.9 25.4 1.0 34.9 37 Open market paper -4.6 1.4 -1.3 15.1 8.9 51.8 31.9 15.7 2.2 7.3 96.3 -14.7 38 Other 28.2 31.0 20.6 16.2 28.3 25.1 21.2 26.9 29.7 26.3 24.0 24.6 39 Deposits and currency 183.9 222.4 204.5 229.7 321.1 215.1 248.7 311.3 330.9 215.9 214.3 240.0 40 Currency 10.3 9.5 9.7 14.3 8.6 12.4 17.5 13.1 4.1 15.8 9.0 10.9 41 Checkable deposits 6.5 18.5 18.6 28.8 27.8 42.0 16.9 29.4 26.3 18.2 65.8 84.9 42 Small time and savings accounts 82.3 47.3 135.7 215.3 150.7 137.5 147.8 136.4 164.9 167.1 108.0 117.5 43 Money market fund shares 29.2 107.5 24.7 -44.1 47.2 -2.2 -4.2 30.2 64.2 4.2 -8.6 29.0 44 Large time deposits 45.9 36.0 5.2 -6.3 84.9 14.0 53.2 93.4 76.5 -.8 28.9 3.5 45 Security RPs 6.8 5.2 11.1 18.5 7.0 13.4 21.8 10.8 3.1 14.3 12.5 -11.9 46 Deposits in foreign countries 2.8 -1.7 -.4 3.1 -5.1 -2.1 -4.3 -2.0 -8.2 -2.9 -1.3 6.2 47 Total of credit market instruments, deposits and currency 237.0 299.0 320.7 382.7 517.4 515.3 422.3 494.4 540.5 426.0 604.5 315.9 48 Public holdings as percent of total 25.7 26.2 28.6 20.4 20.3 23.3 17.8 17.4 23.2 27.7 20.2 37.0 49 Private financial intermediation (in percent) 89.8 93.6 74.2 75.5 80.6 72.1 79.0 83.1 78.1 76.1 69.4 97.2 50 Total foreign funds -4.0 -.7 -7.3 41.3 60.9 80.1 61.4 43.7 78.2 62.2 98.1 118.4 MEMO: Corporate equities not included above 51 Total net issues 21.2 -3.3 3333..66 67.0 -31.1 37.5 52.1 -40.1 --2222..22 33.3 41.6 153.4 5? Mutual fund shares 4.5 6.0 16.8 32.1 38.0 103.4 28.7 39.3 36.6 93.6 113.1 203.9 53 Other equities 16.8 -9.3 16.8 34.9 -69.1 -65.9 23.4 -79.4 -58.8 -60.4 -71.5 -50.4 54 Acquisitions by financial institutions 22.2 19.9 27.6 46.8 8.2 33.3 35.6 -4.1 20.6 54.0 12.6 34.8 55 Other net purchases -1.0 -23.2 6.0 20.2 -39.4 4.1 16.5 -36.0 -42.7 -20.7 29.0 118.7 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. sum of lines 28 and 47 less lines 40 and 46. 48. Line 2/line 1. 18. Includes farm and commercial mortgages. 49. Line 20/line 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • March 1987 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures' 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1986 MMeeaassuurree 11998833 11998844 11998855 Apr. May June July Aug. Sept. Oct.' Nov.' Dec. 1 Industrial production 109.2 121.8 124.5 124.7 124.2 124.2 124.9 125.1 124.9r 125.3 126.0 126.6 Market groupings 2 Products, total 113.9 127.1 131.7 132.7 132.4 132.4 133.2 133.8 133.3' 134.0 134.5 135.3 3 Final, total 114.7 127.8 132.0 132.1 131.6 131.1 132.0 132.6 132.2' 132.7 133.4 134.2 4 Consumer goods 109.3 118.2 120.7 124.5 124.3 124.4 125.2 125.1 124.2' 124.9 125.8 126.9 5 Equipment 121.7 140.5 147.1 142.3 141.2 140.0 141.0 142.5 142.8' 143.1 143.5 143.9 6 Intermediate 111.2 124.9 130.6 134.5 135.1 137.0 137.3 137.8 137.0' 138.4 138.5 139.2 7 Materials 102.8 114.6 114.7 113.8 113.0 113.1 113.6 113.2 113.5' 113.3 114.5 114.7 Industry groupings 8 Manufacturing 110.2 123.9 127.1 128.7 128.2 128.3 129.2 129.5 129.5 129.9 130.5 131.4 Capacity utilization (percent)2 9 Manufacturing 74.0 80.5 80.1 79.9 79.4 79.3 79.7 79.7 79.6 79.7 79.9 80.3 10 Industrial materials industries 75.3 82.0 80.2 78.7 78.1 78.0 78.3 77.9 78.1' 77.9 78.5 78.6 11 Construction contracts (1977 = 100)3 138.0 150.0 161.0 176.0 160.0 161.0 163.0 168.0 158.0 170.0 171.0 175.0 12 Nonagricultural employment, total4 109.4 114.5 118.5 121.0 121.2 121.1 121.4 121.6 121.9 122.3 122.6 122.9 13 Goods-producing, total 95.9 101.6 102.9 102.9 102.6 102.1 102.2 102.2 102.1 102.1 102.3 102.4 14 Manufacturing, total 93.6 98.6 98.7 97.8 97.5 97.2 97.1 97.1 97.0 97.1 97.3 97.5 15 Manufacturing, production-worker ... 88.6 94.1 93.5 92.4 92.1 91.8 91.7 91.7 91.7 91.8 92.1 92.4 16 Service-producing 115.0 120.0 125.0 128.6 129.0 129.0 129.4 129.7 130.2 130.7 131.0 131.4 17 Personal income, total 176.6 193.5 206.2 216.9 216.6 216.6 217.2 217.6 218.2 218.9 219.4 221.1 18 Wages and salary disbursements 168.7 184.8 197.8 206.8 207.1 207.6 208.5 209.6 210.1 211.5 212.5 213.2 19 Manufacturing 149.0 164.6 172.5 175.8 176.1 175.4 175.5 176.6 176.5 179.0 177.6 178.6 20 Disposable personal income5 176.0 193.6 205.0 216.5 215.9 215.5 215.8 215.9 216.4 216.8 217.0 218.9 21 Retail sales (1977 = 100)6 162.0 179.0 190.6 195.4 197.0 197.5 198.9 201.7 213.0 201.9 200.7 209.6 Prices7 22 Consumer 298.4 311.1 322.2 325.3 326.3 327.9 328.0 328.6 330.2 330.5 330.8 331.1 23 Producer finished goods 285.2 291.1 293.7 287.2 288.9 289.3 287.6 288.1' 287.5 290.5 290.7 289.9 1. A major revision of the industrial production index and the capacity 5. Based on data in Survey of Current Business (U.S. Department of Comutilization rates was released in July 1985. See "A Revision of the Index of merce). Industrial Production" and accompanying tables that contain revised indexes 6. Based on Bureau of Census data published in Survey of Current Business. (1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 7. Data without seasonal adjustment, as published in Monthly Labor Review. (July 1985), pp. 487-501. The revised indexes for January through June 1985 were Seasonally adjusted data for changes in the price indexes may be obtained from shown in the September BULLETIN. the Bureau of Labor Statistics, U.S. Department of Labor. 2. Ratios of indexes of production to indexes of capacity. Based on data from Federal Reserve, McGraw-Hill Economics Department, Department of Com- NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6, merce, and other sources. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 3. Index of dollar value of total construction contracts, including residential, of Current Business. nonresidential and heavy engineering, from McGraw-Hill Information Systems Figures for industrial production for the last two months are preliminary and Company, F. W. Dodge Division. estimated, respectively. 4. Based on data in Employment and Earnings (U.S. Department of Labor). Series covers employees only, excluding personnel in the Armed Forces. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1986 CCaatteeggoorryy 11998844 11998855 11998866 May June July Aug. Sept. Oct.' Nov.' Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 178,602 180,440 182,822 182,545 182,732 182,906 183,074 183,261 183,450 183,628 183,815 2 Labor force (including Armed Forces)1 115,763 117,695 120,078 119,821' 120,234' 120,341' 120,37C 120,536' 120,678 120,940 120,854 3 Civilian labor force 113,544 111155,,446611 117,834 111177,,558877'' 111188,,000055'' 111188,,111177'' 111188,,112244'' 111188,,227722'' 111188,,441144 111188,,667755 111188,,558866 Employment 4 Nonagricultural industries2 101,685 103,971 106,434 106,014' 106,449' 106,763' 107,010' 106,845' 107,030 107,217 107,476 5 Agriculture 3,321 3,179 3,163 3,151' 3,164' 33,,112244'' 3,057' 33,,114422'' 33,,116622 33,,221155 33,,116611 Unemployment 6 Number 8,539 8,312 8,237 8,422' 8,392' 8,230' 8,057' 8,285' 8,222 8,243 7,949 7 Rate (percent of civilian labor force) ... 7.5 7.2 7.0 7.2' 7.1' 7.0f 6.8' 7.C 6.9 6.9 6.7 8 Not in labor force 62,839 62,745 62,744 62,724' 62,498' 62,565' 62,704' 62,725' 62,772 62,688 62,961 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 94,461 97,698 100,168 99,918 99,843 100,105 100,283 100,560 100,826 101,065 101,334 10 Manufacturing 19,412 19,426 19,187 19,201 19,135 19,121 19,123 19,105 19,118 19,159 19,190 11 Mining 974 969 792 790 772 768 753 743 746 743 738 12 Contract construction 4,345 4,661 4,961 4,974 4,947 4,980 5,012 5,010 5,001 4,993 5,004 13 Transportation and public utilities 5,171 5,300 5,285 5,265 5,167 5,288 5,255 5,316 5,316 5,348 5,358 14 Trade 22,134 23,195 23,829 23,783 23,773 23,841 23,893 23,924 24,007 24,050 24,042 15 Finance 5,682 5,924 6,304 6,261 6,295 6,334 6,364 6,388 6,409 6,431 6,466 16 Service 20,761 21,929 23,073 22,924 23,072 23,176 23,255 23,300 23,359 23,444 23,586 17 Government 15,984 16,295 16,738 16,720 16,682 16,597 16,628 16,774 16,870 16,897 16,950 1. Persons 16 years of age and over. Monthly figures, which are based on 3. Data include all full- and part-time employees who worked during, or sample data, relate to the calendar week that contains the 12th day; annual data received pay for, the pay period that includes the 12th day of the month, and are averages of monthly figures. By definition, seasonality does not exist in exclude proprietors, self-employed persons, domestic servants, unpaid family population figures. Based on data from Employment and Earnings (U.S. Depart- workers, and members of the Armed Forces. Data are adjusted to the March 1984 ment of Labor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • March 1987 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1986 1986 1986 Ql Q2r Q3' Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 125.0 124.4 125.0 126.0 156.3 157.1 157.9 158.7 80.0 79.2 79.1' 79.4 2 Mining 105.4 99.9 96.6 96.5 132.4' 132.1 131.9' 131.7 79.6 75.6 73.2' 73.3 3 Utilities 110.5 108.9 108.8 110.3 136.3 136.9 137.5' 138.1 81.1 79.5 79.1' 79.9 4 Manufacturing 128.4 128.4 129.4 130.6 160.5 161.4 162.4' 163.4 80.0 79.5 79.7 79.9 5 Primary processing ... 111.5 111.1 112.1 113.7 133.6 134.0 134.6' 135.1 83.5 82.9 83.3' 84.1 6 Advanced processing , 138.5 138.9 139.7 140.8 176.7 177.9 179.1' 180.4 78.4 78.0 78.0 78.1 7 Materials 114.5 113.3 113.4 114.2 144.2 144.7 145.3 145.8 79.4 78.3 78.1 78.3 8 Durable goods 120.9 118.8 118.8 120.0 159.9 160.7 161.5 162.2 75.6 73.9 73.6 74.0 9 Metal materials 79.0 75.1 73.1 75.7 115.0 114.5 114.0 113.4 68.7 65.6 64.2' 66.8 10 Nondurable goods.... 115.7 116.9 119.7 120.7 139.0 139.5 139.9 140.4 83.2 83.8 85.6 86.0 11 Textile, paper, and chemical.. 116.2 117.0 120.4 121.6 138.4 138.8 139.2 139.6 83.9 84.3 86.5 87.1 1"> 128.8 130.1 135.1 137.3 138.1 138.9 93.8 94.2 97.3 13 115.3 115.4 117.7 144.0 144.3 144.7 80.1 80.0 81.4' 14 Energy materials 102.2 100.6 98.6 98.4 121.1 121.3 121.4 121.6 84.4 82.9 81.2 80.9 Previous cycle1 Latest cycle2 1985 1986 High Low High Low Dec. Apr. May June July Aug. Sept.' Oct.' Nov.' Dec. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 80.6 79.5 79.1 79.0 79.2' 79.2 79.0 79.1 79.4 79.6 16 Mining 92.8 87.8 95.2 76.9 81.1 76.4 75.5 74.9 73.5 73.1 72.9 72.8 73.4 73.7 17 Utilities 95.6 82.9 88.5 78.0 84.5 80.0 79.3 79.2 79.9 78.8 78.7 79.4 80.3 80.0 18 Manufacturing 87.7 69.9 86.5 68.0 80.2 79.9 79.4 79.3 79.7 79.7' 79.6 79.7 79.9 80.3 19 Primary processing ... 91.9 68.3 89.1 65.1 83.0 83.2 82.9 82.7 82.9 83.2 83.7 83.7 84.2 84.6 20 Advanced processing . 86.0 71.1 85.1 69.5 79.0 78.5 78.0 77.7 78.4 78.0 77.6 77.9 77.9 78.3 21 Materials 92.0 70.5 89.1 68.4 80.3 78.7 78.1 78.0 78.3 77.9 78.1 77.9 78.5 78.6 22 Durable goods 91.8 64.4 89.8 60.9 76.5 74.9 73.7 73.2 73.7 73.5 73.5 73.5 74.3 74.1 23 Metal materials 99.2 67.1 93.6 45.7 71.8 68.3 65.2 63.2 63.8 63.8 64.8 64.9 68.8 66.6 24 Nondurable goods .... 91.1 66.7 88.1 70.6 82.8 83.6 83.5 84.3 85.0 85.5 86.1 85.9 85.7 86.3 25 Textile, paper, and chemical 92.8 64.8 89.4 68.6 83.3 83.6 84.2 85.1 85.6 86.5 87.4 87.0 86.8 87.4 ">6 98.4 70.6 97.3 79.9 94.3 93.6 93.1 95.9 97.8 97.9 96.1 95.7 97.7 ">7 92.5 64.4 87.9 63.3 79.4 79.4 80.2 80.4 80.2 81.2 82.6 82.5 81.5 28 Energy materials 94.6 86.9 94.0 82.2 86.4 82.8 82.9 83.1 82.3 80.6 80.7 80.1 81.2 81.5 1. Monthly high 1973; monthly low 1975. NOTE. These data also appear in the Board's G.3 (402) release. For address, see 2. Monthly highs 1978 through 1980; monthly lows 1982. inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value A Monthly data are seasonally adjusted 1977 11998855 1986 pro- 11998855 Grouping por- avg. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. NOV.P Dec/ Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 123.8 125.6 126.2 125.3 123.6 124.7 124.2 124.2 124.9 125.1 124.9 125.3 126.0 126.6 2 Products 57.72 130.8 133.0 134.0 132.9 131.2 132.7 132.4 132.4 133.2 133.8 133.3 134.0 134.5 135.3 3 Final products 44.77 131.1 133.2 133.9 132.8 130.6 132.1 131.6 131.1 132.0 132.6 132.2 132.7 133.4 134.2 4 Consumer goods 25.52 120.2 123.3 123.8 123.3 121.8 124.5 124.3 124.4 125.2 125.1 124.2 124.9 125.8 126.9 5 Equipment 19.25 145.4 146.4 147.5 145.4 142.3 142.3 141.2 140.0 141.0 142.5 142.8 143.1 143.5 143.9 6 Intermediate products 12.94 130.0 132.0 134.2 133.4 133.3 134.5 135.1 137.0 137.3 137.8 137.0 138.4 138.5 139.2 7 Materials 42.28 114.2 115.4 115.5 114.8 113.3 113.8 113.0 113.1 113.6 113.2 113.5 113.4 114.5 114.7 Consumer goods 8 Durable consumer goods 6.89 112.9 115.3 116.0 116.6 112.4 115.9 113.8 114.3 116.3 115.7 117.4 116.6 117.4 119.4 9 Automotive products 2.98 114.0 113.9 116.2 117.6 110.4 116.4 113.2 113.7 116.4 114.5 117.0 112.7 113.2 117.0 10 Autos and trucks 1.79 112.0 110.4 118.2 119.4 106.3 115.1 110.3 112.2 114.5 110.4 116.8 107.7 107.6 113.5 11 Autos, consumer 1.16 98.9 94.6 105.5 107.1 93.7 100.8 94.8 99.3 95.3 87.8 96.2 91.9 92.3 99.5 12 Trucks, consumer .63 136.3 139.8 141.7 142.1 129.6 141.5 139.1 136.1 150.3 152.4 155.1 137.1 136.0 13 Auto parts and allied goods 1.19 116.9 119.0 113.3 114.9 116.6 118.4 117.4 116.1 119.1 120.7 117.3 120.1 121.6 122.2 14 Home goods 3.91 112.2 116.4 115.8 115.8 113.9 115.5 114.3 114.8 116.3 116.7 117.7 119.7 120.5 121.2 15 Appliances, A/C and TV 1.24 131.0 140.4 133.2 135.1 133.7 138.8 133.9 137.5 138.9 139.4 141.2 143.2 145.5 145.9 16 Appliances and TV 1.19 131.8 143.2 135.7 137.6 136.0 140.6 135.8 139.1 141.6 142.5 143.5 144.9 147.2 17 Carpeting and furniture .96 119.8 123.3 125.1 124.4 121.2 121.8 123.3 122.5 126.6 125.8 126.2 128.7 130.2 18 Miscellaneous home goods 1.71 94.3 95.1 98.0 97.0 95.5 95.0 95.0 94.1 94.1 95.1 96.0 97.6 97.1 19 Nondurable consumer goods 18.63 122.9 126.3 126.6 125.8 125.3 127.7 128.1 128.1 128.4 128.6 126.7 127.9 128.9 129.7 20 Consumer staples 15.29 129.0 132.5 132.8 132.3 131.6 134.3 135.0 135.1 135.3 135.5 133.6 134.6 135.5 136.2 21 Consumer foods and tobacco 7.80 128.8 131.6 130.1 131.1 130.3 131.9 132.4 133.3 132.2 133.2 131.0 131.4 132.5 22 Nonfood staples 7.49 129.2 133.4 135.6 133.5 133.0 136.7 137.7 137.0 138.5 137.9 136.3 137.9 138.6 138.9 23 Consumer chemical products .. 2.75 149.1 153.6 156.3 158.3 156.4 163.1 162.4 163.6 166.4 163.4 161.1 162.4 163.1 24 Consumer paper products 1.88 141.9 146.5 148.9 143.4 143.1 145.1 148.6 147.1 146.4 147.7 145.7 150.5 151.5 25 Consumer energy 2.86 101.8 105.4 107.0 103.2 104.0 106.0 106.8 104.8 106.6 107.1 106.3 106.1 106.5 26 Consumer fuel 1.44 88.6 91.7 94.1 92.0 92.2 93.7 96.4 91.8 91.2 94.9 92.0 90.8 91.9 27 Residential utilities 1.42 115.3 119.4 120.1 114.5 116.1 118.4 117.5 118.1 122.3 119.6 120.9 121,6 Equipment 28 Business and defense equipment 18.01 146.0 147.8 149.1 147.8 145.5 146.6 146.0 145.1 146.4 147.8 148.0 148.2 148.4 148.8 29 Business equipment 14.34 139.6 140.0 141.5 140.5 137.7 138.6 137.9 136.6 137.9 139.3 139.3 139.2 139.2 139.3 30 Construction, mining, and farm .. 2.08 64.3 66.3 65.3 63.0 59.5 58.6 60.9 61.9 60.6 58.3 58.1 58.0 56.7 31 Manufacturing 3.27 110.7 111.6 113.0 112.9 112.4 111.9 111.9 111.7 112.6 113.3 113.0 112.4 111.1 111.3 32 Power 1.27 83.5 85.4 82.9 82.3 82.0 83.0 82.9 83.5 81.7 81.7 80.3 80.4 79.8 80.4 33 Commercial 5.22 217.9 217.0 217.8 216.8 214.3 213.4 212.9 208.2 214.5 217.5 215.1 215.8 217.7 218.0 34 Transit 2.49 105.4 105.5 112.7 111.7 104.3 112.1 107.3 108.8 103.9 106.9 113.3 111.8 111.0 110.3 35 Defense and space equipment 3.67 170.6 178.5 178.7 176.3 176.2 178.0 178.0 178.4 179.5 181.0 182.0 183.6 184.5 186.2 Intermediate products 36 Construction supplies 5.95 118.3 119.8 124.0 122.6 122.6 123.6 123.5 124.1 124.0 125.4 125.9 126.0 126.3 126.7 37 Business supplies 6.99 140.0 142.4 142.9 142.6 142.5 143.8 145.0 147.9 148.6 148.4 146.4 148.9 149.0 38 General business supplies 5.67 143.9 146.2 147.2 146.7 146.4 148.0 148.3 151.6 153.3 152.5 151.2 153.9 153.8 39 Commercial energy products 1.31 122.9 126.2 124.4 124.9 125.6 125.8 130.7 131.9 128.3 130.6 125.8 127.6 128.0 Materials 40 Durable goods materials 20.50 121.4 121.9 122.2 121.3 119.3 120.2 118.4 117.8 118.8 118.8 118.9 119.0 120.6 120.5 41 Durable consumer parts 4.92 100.3 101.1 103.5 103.2 99.9 99.3 96.4 96.3 96.7 95.2 95.3 96.4 98.2 98.4 42 Equipment parts 5.94 158.0 154.1 153.8 153.0 153.7 154.8 152.3 151.8 154.3 155.6 154.8 153.8 155.6 154.5 43 Durable materials n.e.c 9.64 109.7 112.8 112.2 111.0 108.0 109.4 108.8 107.9 108.2 108.1 108.8 109.1 111.0 110.7 44 Basic metal materials 4.64 84.8 87.9 85.2 83.0 79.6 82.9 78.9 76.7 77.4 76.9 78.4 78.3 82.8 45 Nondurable goods materials 10.09 112.2 114.9 116.2 116.1 114.8 116.5 116.5 117.7 118.9 119.7 120.6 120.4 120.3 121.3 46 Textile, paper, and chemical materials 7.53 112.2 115.0 116.5 116.5 115.5 115.9 116.9 118.2 119.0 120.5 121.8 121.3 121.3 122.1 47 Textile materials 1.52 98.7 103.8 104.1 107.5 105.7 106.7 108.4 109.5 111.2 113.4 116.0 114.3 114.7 48 Pulp and paper materials 1.55 124.1 129.0 129.7 128.8 128.0 129.0 128.6 132.7 135.6 136.0 133.7 133.5 136.5 49 Chemical materials 4.46 112.7 114.0 116.2 115.4 114.5 114.5 115.7 116.1 115.9 117.5 119.7 119.5 118.2 50 Miscellaneous nondurable materials 2.57 112.1 114.4 115.4 115.0 112.8 118.2 115.3 116.4 118.3 117.2 117.1 117.6 117.7 51 Energy materials 11.69 103.4 104.5 103.0 102.1 101.4 100.4 100.5 100.8 99.9 97.9 98.0 97.4 98.7 99.1 52 Primary energy 7.57 107.2 108.1 106.9 106.7 107.4 106.2 106.7 106.5 104.8 103.7 103.8 103.4 104.8 53 Converted fuel materials 4.12 96.4 97.9 95.8 93.6 90.5 89.7 89.2 90.4 90.9 87.3 87.4 86.4 87.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1987 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 Dec. Jan. Apr. May June July Aug. Sept/ Oct. NOV.P Dec. Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 110.0 110.2 109.8 106.8 105.4 104.2 103.1 102.6 101.8 100.9 100.8 101.1 102.0 102.1 2 Mining 9.83 108.8 107.4 108.1 105.1 103.0 101.0 99.8 98.9 97.1 96.4 96.2 95.9 96.6 97.0 3 Utilities 5.96 111.9 114.8 112.5 109.7 109.3 109.4 108.5 108.6 109.7 108.3 108.3 109.5 110.9 110.6 4 Manufacturing 84.21 126.4 128.2 129.4 128.7 127.2 128.7 128.2 128.3 129.2 129.5 129.5 129.9 130.5 131.4 5 Nondurable 35.11 125.1 127.5 129.3 128.7 127.7 129.6 129.9 131.2 131.7 132.2 131.4 132.3 133.1 133.8 6 Durable 49.10 127.3 128.7 129.5 128.7 126.8 128.1 127.0 126.2 127.4 127.5 128.1 128.2 128.7 129.6 Mining 7 Metal 10 .50 75.0 77.3 73.5 77.2 75.9 76.0 72.0 65.9 69.2 70.9 70.7 8 Coal 11.12 1.60 126.8 128.4 130.8 126.5 124.7 124.4 124.0 127.3 120.2 122.2 120.8 117.6 130.6 9 Oil and gas extraction 13 7.07 106.2 104.2 104.9 101.1 99.2 96.2 95.1 93.3 92.4 90.7 91.0 91.2 89.3 88.6 10 Stone and earth minerals 14 .66 118.3 114.6 113.5 116.8 111.6 115.0 112.4 114.5 111.8 114.8 111.7 114.4 113.0 Nondurable manufactures 11 Foods 20 7.96 130.2 132.1 132.0 132.9 132.2 133.1 133.7 134.6 134.3 135.1 134.3 133.5 134.5 12 Tobacco products 21 .62 100.2 100.3 93.8 97.0 93.6 100.3 101.6 97.6 97.9 97.1 89.8 100.0 13 Textile mill products 22 2.29 103.2 107.7 107.9 109.9 108.0 111.4 111.3 112.6 113.4 114.7 116.0 116.4 118.6 14 Apparel products 23 2.79 100.9 104.5 105.5 102.8 102.8 103.1 102.6 101.7 102.5 102.5 102.7 104.1 105.7 15 Paper and products 26 3.15 127.6 131.3 133.6 132.6 132.4 134.1 133.2 137.2 138.1 138.6 136.9 137.7 140.3 16 Printing and publishing 27 4.54 153.9 157.6 160.9 156.7 157.8 161.6 161.9 164.0 165.4 164.6 163.0 168.0 167.8 168.6 17 Chemicals and products 28 8.05 127.1 128.1 131.7 132.0 130.2 132.8 131.5 134.2 134.1 134.4 133.9 134.2 134.2 18 Petroleum products 29 2.40 86.8 88.9 94.7 90.1 88.6 91.3 95.7 91.8 90.6 94.0 93.3 91.0 90.4 91.3 19 Rubber and plastic products... 30 2.80 146.9 149.4 150.2 151.1 147.8 146.8 150.1 152.2 155.5 155.5 154.9 157.1 158.2 20 Leather and products 31 .53 68.5 66.4 65.4 64.8 62.7 61.5 59.5 57.9 61.9 62.0 59.4 59.2 61.5 Durable manufactures 21 Lumber and products 24 2.30 113.4 116.1 120.5 120.3 120.7 121.3 121.6 120.9 120.8 122.5 125.0 124.8 22 Furniture and fixtures 25 1.27 139.7 140.5 141.2 143.2 142.9 145.9 146.2 147.1 149.5 148.3 147.7 149.3 147.9 23 Clay, glass, stone products 32 2.72 115.5 118.2 120.0 119.3 120.0 121.6 120.2 120.8 119.6 119.7 121.6 118.2 118.1 24 Primary metals 33 5.33 80.5 81.7 82.4 80.3 76.3 78.1 74.8 71.4 73.6 73.4 74.1 74.2 76.8 75.9 25 Iron and steel 331.2 3.49 70.4 71.6 72.2 69.5 64.3 65.6 60.2 58.3 61.7 60.8 61.1 62.2 64.6 26 Fabricated metal products .... 34 6.46 107.3 108.2 109.2 108.5 107.6 108.2 106.5 106.6 105.7 105.9 107.3 108.0 107.5 108.1 27 Nonelectrical machinery 35 9.54 145.3 146.2 144.9 143.9 141.7 140.8 141.3 140.4 142.6 142.6 140.9 142.9 142.6 142.9 28 Electrical machinery 36 7.15 168.4 168.7 166.1 164.8 165.2 166.8 166.0 163.2 166.8 167.2 166.9 167.8 167.9 169.7 29 Transportation equipment 37 9.13 121.4 124.0 128.2 127.5 122.6 126.2 124.1 125.1 125.6 125.1 127.7 125.2 125.7 127.8 30 Motor vehicles and parts 371 5.25 111.5 111.4 116.5 116.4 108.1 112.6 108.7 110.6 111.2 108.2 112.2 107.1 107.8 111.5 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 134.9 141.0 143.9 142.6 142.4 144.8 145.0 144.7 145.2 148.0 148.7 149.7 150.0 149.9 32 Instruments 38 2.66 139.1 140.4 141.5 141.9 142.0 142.4 140.3 139.9 141.7 142.0 141.7 140.2 141.9 142.8 33 Miscellaneous manufactures... 39 1.46 96.1 96.6 100.9 100.9 99.0 99.2 101.0 98.3 97.5 98.3 97.7 100.1 99.7 Utilities 34 Electric 44..1177 111199..77 112222..44 111199..77 111199..55 111199..88 112211..66 112211..77 112233..11 112255..44 112222..44 112222..88 112233..99 112255..44 Gross value (billions of 1978 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,650.9 1,676.6 1,702.1 1,686.5 1,660.8 1,686.3 1,687.6 1,676.7 1,669.9 1,681.3 1,677.8 1,684.0 1,690.0 1,700.1 36 Final 405.7 1,282.3 1,302.5 1,321.2 1,310.3 1,282.5 1,307.0 1,301.1 1,289.5 1,282.7 1,292.6 1,292.3 1,293.2 1,299.2 1,307.7 37 Consumer goods . 272.7 820.7 841.7 850.7 845.3 832.0 852.3 852.4 843.8 842.3 846.9 839.8 840.5 848.0 858.1 38 Equipment 133.0 461.7 460.8 470.5 465.1 450.4 454.7 448.7 445.7 440.4 445.7 452.5 452.8 451.2 449.6 39 Intermediate 111.9 368.6 374.1 380.8 376.2 378.3 379.3 386.4 387.2 387.1 388.7 385.5 390.8 390.9 392.5 • 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. 1986 IItteemm 11998833 11998844 11998855 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,605 1,682 1,733 1,808 1,834 1,885 1,788 1,792 1,759 1,673 1,603 1,565 1,613 2 1-family 902 922 957 1,033 1,043 1,139 1,092 1,121 1,093 1,039 1,047 1,006 991 3 2-or-more-family 703 759 777 775 791 746 6% 671 666 634 556 559 622 4 Started 1,703 1,749 1,742 2,001 1,960 2,019 1,853 1,852 1,782 1,795 1,664 1,628 1,585 5 1-family 1,067 1,084 1,072 1,202 1,221 1,242 1,241 1,230 1,137 1,186 1,102 1,085 1,087 6 2-or-more-family 635 665 669 799 739 777 612 622 645 609 562 543 498 7 Under construction, end of period1 1,003 1,051 1,063 1,110 1,099 1,135 1,132 1,151 1,157 1,164 1,154 1,143 1,128 8 1-family 524 556 539 581 574 586 597 612 623 630 626 625 619 9 2-or-more-family 479 494 524 529 526 549 534 539 533 533 527 518 509 10 Completed 1,390 1,652 1,703 1,725 1,806 1,693 1,829 1,620 1,761 1,763 1,743 1,733 1,749 11 1-family 924 1,025 1,072 1,038 1,153 1,127 1,140 1,060 1,067 1,128 1,110 1,166 1,159 12 2-or-more-family 466 627 631 687 653 566 689 560 694 635 633 567 590 13 Mobile homes shipped 296 296 284 266 240 249 239 226 236 232 244 244 238 Merchant builder activity in 1-family units 14 Number sold 622 639 688 741 924 880 787 722 698 618 733 676 661 15 Number for sale, end of period1 304 358 350 352 338 336 336 340 349 352 354 356 358 PPrriiccee ((tthhoouussaannddss ooff ddoollllaarrss))22 MMeeddiiaann 1166 UUnniittss ssoolldd 75.5 80.0 84.3 89.7 88.7 92.5 92.1 91.2 94.1 91.5 94.2 95.0 95.5 AAvveerraaggee 1177 UUnniittss ssoolldd 89.9 97.5 101.0 106.6 108.0 110.3 114.6 110.9 116.8 113.2 113.0 112.5 116.8 EXISTING UNITS (1-family) 18 Number sold 2,719 2,868 3,217 3,270 3,200 3,570 3,450 3,390 3,470 3,610 3,770 3,810 3,910 Price of units sold (thousands of dollars)2 19 Median 69.8 7722..33 7755..44 77.4 79.8 80.2 83.2 8822..66 79.9 82.0 79.4 79.4 80.4 82.5 8855..99 9900..66 93.1 96.8 98.1 101.7 110022..11 99.2 100.3 96.8 97.3 99.1 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 279,240 327,209 355,570 373,947 368,027 373,904 374,483 375,397 380,722 382,603 382,581 379,676 376,958 ?? Private 228,527 271,973 292,792 305,682 298,868 303,320 302,573 304,567 309,003 310,155 308,617 307,736 306,239 73 Residential 126,553 155,148 158,818 164,713 165,645 170,520 172,491 174,478 178,821 178,761 178,480 178,642 177,995 74 Nonresidential, total 101,974 116,825 133,974 140,969 133,223 132,800 130,082 130,089 130,182 131,394 130,137 129,094 128,244 Buildings 75 Industrial 12,863 13,746 15,769 16,381 13,354 14,557 13,658 13,027 12,866 12,543 13,180 12,913 1122,,665544 76 Commercial 35,789 48,100 59,626 63,494 60,716 59,763 57,368 57,443 58,132 60,054 58,001 56,430 56,102 77 Other 11,838 12,547 12,619 13,065 13,131 13,006 13,131 13,263 13,277 13,315 14,001 14,435 14,520 28 Public utilities and other 41,484 42,432 45,960 48,029 46,022 45,474 45,925 46,356 45,907 45,482 44,955 45,316 44,968 29 Public 50,715 55,232 62,777 68,264 69,159' 70,583 71,910 70,830 71,719 72,448 73,964 71,940 70,720 30 Military 2,544 2,839 3,283 3,974 3,673 3,725 3,637 3,761 3,553 4,132 5,050 3,695 3,714 31 Highway 14,143 16,343 19,998 22,273 22,673 23,155' 23,240' 22,001' 21,603 21,607 20,552 20,274 19,243 37 Conservation and development 4,820 4,654 4,952 4,372 4,598 4,947 4,729 4,657 4,415 4,294 4,841 4,843 4,462 33 Other 29,208 31,396 34,544 37,645 38,215 38,756 40,304 40,411 42,148 42,415 43,521 43,128 43,301 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of comparable with data in prior periods because of changes by the Bureau of the existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from originating agency. Permit authoriza- Construction Reports (C-30-76-5), issued by the Bureau in July 1976. tions are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • March 1987 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 DDDeeeccc... 1986 1986 111999888666 11998855 11998866 (((111999666777 DDeecc.. DDeecc.. === 111000000)))111 Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 1 All items 3.8 1.1 -1.9 1.5 2.2 2.7 .2 .3 .2 .3 .2 331.1 2 Food 2.7 3.8 -1.4 3.4 9.4 4.1 .9 .4 .3 .5 .2 325.2 3 Energy items 1.8 -19.7 -34.2 -12.5 -19.5 -9.7 -1.9 .7 -2.2 -.7 .3 342.4 4 All items less food and energy 4.4 3.8 4.1 3.1 3.7 4.1 .3 .3 .4 .3 .3 332.8 5 Commodities 2.1 1.4 .3 -.5 3.1 2.4 .3 .2 .2 .2 .2 265.8 6 Services 5.7 5.2 6.5 5.2 4.1 5.0 .3 .3 .5 .4 .3 405.7 PRODUCER PRICES 7 Finished goods 1.8 -2.5 -12.5 .4 .7 2.2 .3' .5' .3 .2 .0 289.9 8 Consumer foods .5 2.9 -8.1 5.9 13.0 1.8 1.6' -.3' .9 -.1 -.4 282.9 9 Consumer energy -.3 -39.1 -66.9 -22.3 -36.9 -15.7 4.4' -4.3 .0 .2 446.8 10 Other consumer goods 2.7 2.9 2.5 2.0 2.2 5.4 .(V .3' .8 .3 .2 262.0 11 Capital equipment 2.7 2.1 .7 2.3 2.2 3.2 .1 .4 .5 .3 .0 310.1 12 Intermediate materials3 -.1 -4.5 -11.8 -5.3 -.8 .1 -.1 .5 -.3 .2 .1 310.5 13 Excluding energy -.1 .1 -1.0 -1.3 2.0 .8 .1 .2 .1 .2 -.1 304.8 Crude materials 14 Foods -6.4 -1.7 -24.7 1.6 20.1 1.5 2.8' -1.5' 2.6 -.2 -2.0 232.8 IS Energy -4.9 -29.4 -51.3 -29.1 -13.3 -16.9 4.6' -.9 -.7 -3.0 519.5 16 Other -4.3 1.6 -.2 7.0 -18.1 20.1 -5.6 .5 1.7 1.6 1.4 246.9 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A51 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1985 1986 AAccccoouunntt 11998844 11998855 11998866 Q4 Ql Q2 Q3 Q4 GROSS NATIONAL PRODUCT 1 Total 3,765.0 3,998.1 4,208.5 4,087.7 4,149.2 4,175.6 4,240.7 4,268.4 By source 2 Personal consumption expenditures 2,428.2 2,600.5 2,762.4 2,667.9 2,697.9 22,,773322..00 22,,779999..88 22,,881199..99 3 Durable goods 331.2 359.3 388.3 362.0 360.8 373.9 414.5 404.2 4 Nondurable goods 870.1 905.1 932.7 922.6 929.7 928.4 932.8 940.0 5 Services 1,227.0 1,336.1 1,441.3 1,383.2 1,407.4 1,429.8 1,452.4 1,475.7 6 Gross private domestic investment 662.1 661.1 686.4 669.5 708.3 687.3 675.8 674.5 7 Fixed investment 598.0 650.0 675.1 672.6 664.4 672.8 680.3 682.7 8 Nonresidential 416.5 458.2 458.5 474.0 459.2 457.5 459.0 458.1 9 Structures 139.3 154.8 143.6 157.2 154.6 141.5 139.5 138.6 10 Producers' durable equipment 277.3 303.4 314.9 316.8 304.6 316.0 319.5 319.5 11 Residential structures 181.4 191.8 216.6 198.6 205.3 215.3 221.3 224.6 12 Change in business inventories 64.1 11.1 11.4 -3.1 43.8 14.5 -4.5 -8.3 13 Nonfarm 56.6 12.2 11.8 16.7 41.2 10.5 -10.3 5.7 14 Net exports of goods and services -58.7 -78.9 -105.7 -105.3 -93.7 -104.5 -108.9 -115.6 382.7 369.8 373.0 368.2 374.8 363.0 370.8 383.4 16 Imports 441.4 448.6 478.7 473.6 468.5 467.5 479.7 499.0 17 Government purchases of goods and services 733.4 815.4 865.3 855.6 836.7 860.8 874.0 889.7 18 Federal 311.3 354.1 367.2 380.9 355.7 367.6 369.3 376.3 19 State and local 422.2 461.3 498.1 474.7 480.9 493.3 504.7 513.3 By major type of product 3,700.9 3,987.0 4,197.1 4,090.8 44,,110055..44 44,,116611..22 44,,224455..22 44,,227766..77 21 Goods 1,576.7 1,630.2 1,673.0 1,644.1 1,669.0 1,661.6 1,680.2 1,681.1 22 Durable 675.0 700.2 719.7 709.1 710.6 703.1 730.1 735.0 23 Nondurable 901.7 930.0 953.3 935.0 958.4 958.5 950.1 946.1 1,813.1 1,959.8 2,105.5 2,025.5 2,057.7 2,087.4 2,125.2 2,151.7 25 Structures 375.1 408.1 430.1 418.1 422.6 426.7 435.3 435.7 26 Change in business inventories 64.1 11.1 11.4 -3.1 43.8 14.5 -4.5 -8.3 27 Durable goods 39.2 6.6 4.2 9.5 28.6 -.1 -15.6 3.9 28 Nondurable goods 24.9 4.5 7.2 -12.7 15.3 14.6 11.1 -12.2 29 MEMO: Total GNP in 1982 dollars 3,489.9 3,585.2 3,676.5 3,622.3 3,655.9 3,661.4 3,686.4 3,702.4 NATIONAL INCOME 30 Total 3,032.0 3,222.3 3,387.4 3,287.3 3,340.7 3,376.4 3,396.1 n.a. 31 Compensation of employees 2,214.7 2,368.2 2,498.3 2,423.6 2,461.5 2,480.2 2,507.4 2,544.2 32 Wages and salaries 1,837.0 1,965.8 2,073.8 2,012.8 2,044.1 2,058.8 2,081.1 2,111.1 33 Government and government enterprises 346.2 372.2 395.7 381.6 387.2 392.5 398.4 404.4 34 Other 1,490.6 1,593.9 1,678.1 1,631.1 1,656.8 1,666.3 1,682.7 1,706.7 35 Supplement to wages and salaries 377.7 402.4 424.5 410.9 417.4 421.3 426.3 433.1 36 Employer contributions for social insurance 193.1 205.5 215.7 209.1 212.9 214.1 215.9 220.1 37 Other labor income 184.5 196.9 208.8 201.7 204.5 207.3 210.4 213.0 236.9 254.4 278.9 262.1 265.3 289.1 277.5 283.7 39 Business and professional1 205.3 225.2 252.5 232.7 240.9 249.6 258.0 261.6 40 Farm1 31.5 29.2 26.4 29.4 24.4 39.5 19.6 22.2 41 Rental income of persons2 8.3 7.6 15.6 8.3 12.8 16.3 16.2 17.0 42 Corporate profits' 264.7 280.7 299.7 285.6 296.4 293.1 302.0 n.a. 43 Profits before tax3 235.7 223.2 236.6 235.8 222.5 227.7 240.4 n.a. 44 Inventory valuation adjustment -5.5 -.6 6.3 -9.4 16.5 10.6 6.1 -8.0 45 Capital consumption adjustment 34.5 58.1 56.8 59.2 57.3 54.8 55.5 59.5 46 Net interest 307.4 311.4 294.9 307.6 304.9 297.7 292.9 284.1 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • March 1987 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1985 Account 1985 Q4 Q1 Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 3,110.2 3,314.5 3,487.0 3,382.9 3,432.6 3,483.3 3,498.8 2 Wage and salary disbursements 1.836.8 1,966.1 2,073.8 2,012.8 2,044.1 2,058.8 2,081.1 3 Commodity—producing industries 577.8 607.7 623.3 617.7 622.0 620.8 621.8 4 Manufacturing 439.1 460.1 471.3 467.5 470.5 468.8 470.0 5 Distributive industries 442.2 469.8 488.0 478.9 485.2 484.3 488.3 6 Service industries 470.6 516.4 566.8 534.6 549.6 561.3 572.6 7 Government and government enterprises. 346.2 372.2 395.7 381.6 387.2 392.5 398.4 8 Other labor income 184.5 196.9 208.8 201.7 204.5 207.3 210.4 9 Proprietors' income1 236.9 254.4 278.9 262.1 265.3 289.1 277.5 10 Business and professional1 205.3 225.2 252.5 232.7 240.9 249.6 258.0 11 Farm1 31.5 29.2 26.4 29.4 24.4 39.5 19.6 12 Rental income of persons2 8.3 7.6 15.6 8.3 12.8 16.3 16.2 13 Dividends 74.7 76.4 81.2 76.7 79.1 81.1 82.0 14 Personal interest income 446.9 476.2 475.4 480.6 480.8 480.1 473.8 15 Transfer payments 455.6 487.1 513.7 493.6 504.7 510.1 518.5 16 Old-age survivors, disability, and health insurance benefits. 235.7 253.4 266.7 256.8 263.2 264.1 269.6 17 LESS: Personal contributions for social insurance 133.5 150.2 160.3 152.9 158.6 159.5 160.8 18 EQUALS: Personal income 3,110.2 3,314.5 3,487.0 3,382.9 3,432.6 3,483.3 3.498.8 19 LESS: Personal tax and nontax payments 439.6 486.5 513.4 500.7 497.5 504.8 519.0 20 EQUALS: Disposable personal income 2,670.6 2,828.0 2,973.7 2,882.2 2,935.1 2,978.5 2.979.9 21 LESS: Personal outlays 2.501.9 2,684.7 2,857.4 2,756.4 2,789.4 2,825.5 2,895.8 22 EQUALS: Personal saving 168.7 143.3 116.3 125.8 145.6 153.1 84.1 MEMO Per capita (1982 dollars) 23 Gross national product 14,721.1 14,980.9 15,223.6 15,079.9 15,188.0 15,178.9 15,245.6 24 Personal consumption expenditures 9,475.4 9,713.0 10,014.9 9,790.3 9,857.1 9,984.4 10,124.0 25 Disposable personal income 10,421.0 10,563.0 10,780.0 10,577.0 10,723.0 10,886.0 10,776.0 26 Saving rate (percent) 6.3 5.1 3.9 4.4 5.0 5.1 2.8 GROSS SAVING 27 Gross saving. 573.3 551.5 537.4 524.1 583.2 539.7 517.2 28 Gross private saving 674.8 687.8 680.5 679.2 708.3 713.0 650.5 29 Personal saving 168.7 143.3 116.3 125.8 145.6 153.1 84.1 30 Undistributed corporate profits1 91.0 107.3 109.1 106.8 115.5 106.6 108.1 31 Corporate inventory valuation adjustment. -5.5 -.6 6.3 -9.4 16.5 10.6 6.1 Capital consumption allowances 32 Corporate 253.9 268.2 280.2 273.3 275.3 278.9 281.6 33 Noncorporate 161.2 169.0 175.0 173.4 171.8 174.4 176.0 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -101.5 -136.3 -143.1 -155.1 -125.1 -173.3 -133.3 36 Federal -170.0 -198.0 -204.0 -217.6 -195.0 -232.2 -197.4 37 State and local 68.5 61.7 60.8 62.5 69.9 58.9 64.0 38 Capital grants received by the United States, net .0 .0 .0 .0 .0 .0 .0 39 Gross investment 571.4 545.9 542.8 525.7 579.6 544.3 527.5 40 Gross private domestic 662.1 661.1 686.4 669.5 708.3 687.3 675.8 41 Net foreign -90.7 -115.2 -143.7 -143.8 -128.6 -143.0 -148.3 42 Statistical discrepancy. 5.4 1.6 4.6 10.3 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 1985 1986 IItteemm ccrreeddiittss oorr ddeebbiittss 11998833 11998844 11998855 Q3 Q4 Ql Q2 Q3 P 1 Balance on current account -46,605 -106,466 -117,677 -28,455 -33,695 -34,038 -34,413 -36,280 i --3322,,227755 --3311,,551100 --3311,,002200 --3355,,445588 --4400,,220066 Merchandise trade balance2 -67,080 -112,522 -124,439 -31,675 -37,352 -36,459 -35,669 -37,669 A Merchandise exports 201,820 219,900 214,424 52,498 52,727 53,661 55,149 55,318 5 Merchandise imports -268,900 -332,422 -338,863 -84,173 -90,079 -90,120 -90,818 -92,987 6 Military transactions, net -370 -1,827 -2,917 -619 -1,322 -1,066 -695 -624 7 Investment income, net3 24,841 18,751 25,188 8,262 9,255 6,517 5,325 5,509 8 Other service transactions, net 5,484 1,288 -525 -422 -32 -7 705 681 9 Remittances, pensions, and other transfers -3,194 -3,621 -3,787 -914 -937 -954 -834 -789 10 U.S. government grants (excluding military) -6,286 -8,536 -11,196 -3,087 -3,307 -2,069 -3,245 -3,388 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,005 -5,523 -2,824 -422 -540 -250 -209 -1,346 12 Change in U.S. official reserve assets (increase, -) -1,196 -3,130 -3,858 -121 -3,148 -115 16 280 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -66 -979 -897 -264 -189 -274 -104 163 15 Reserve position in International Monetary Fund -4,434 -995 908 388 168 344 366 508 16 Foreign currencies 3,304 -1,156 -3,869 -245 -3,126 -185 -246 -391 17 Change in U.S. private assets abroad (increase, -)3 -43,821 -14,987 -25,754 -5,324 -19,579 -12,533 -25,357 -28,016 18 Bank-reported claims -29,928 -11,127 -691 4,009 -8,485 6,333 -14,387 -20,507 19 Nonbank-reported claims -6,513 5,081 1,665 -1,517 418 -2,842 -1,220 n.a. 20 U.S. purchase of foreign securities, net -7,007 -5,082 -7,977 -1,664 -1,411 -6,133 -1,664 163 21 U.S. direct investments abroad, net3 -373 -3,859 -18,752 -6,152 -10,101 -9,891 -8,806 -7,672 22 Change in foreign official assets in the United States (increase, +) 5,968 3,037 -1,324 2,577 -1,322 2,469 14,704 15,839 23 U.S. Treasury securities 6,972 4,690 -546 -81 -1,976 3,256 14,538 12,262 24 Other U.S. government obligations -476 13 -295 46 -171 -177 -644 -276 25 Other U.S. government liabilities4 725 436 483 58 263 288 679 954 26 Other U.S. liabilities reported by U.S. banks 545 555 522 2,932 722 -1,261 662 3,201 27 Other foreign official assets5 -1,798 -2,657 -1,488 -378 -160 363 -531 -302 28 Change in foreign private assets in the United States (increase, +)3 79,528 99,730 128,430 33,088 53,158 34,151 32,822 53,294 79 U.S. bank-reported liabilities 50,342 33,849 40,387 7,276 20,427 8,434 3,553 32,187 30 U.S. nonbank-reported liabilities -118 4,704 -1,172 589 2,232 -2,057 -1,644 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 8,721 23,059 20,500 7,484 5,676 7,666 3,807 597 32 Foreign purchases of other U.S. securities, net 8,636 12,759 50,859 11,628 22,441 18,686 23,018 17,078 33 Foreign direct investments in the United States, net3 11,947 25,359 17,856 6,111 2,382 1,422 4,088 3,432 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 11,130 27,338 23,006 -1,343 5,125 10,316 12,437 -3,771 36 --33,,668877 33,,777711 11,,221166 --11,,550055 --33,,999933 37 Statistical discrepancy in recorded data before seasonal adjustment 11,130 27,338 23,006 2,344 1,354 9,100 13,942 222 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -1,196 -3,130 -3,858 -121 -3,148 -115 16 280 39 Foreign official assets in the United States (increase, +) 5,243 2,601 -1,807 2,519 -1,585 2,181 14,025 14,885 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) -8,283 -4,304 -6,599 -1,831 -1,002 1,421 -1,938 -2,828 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 194 190 64 15 28 22 12 15 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Primarily associated with military sales contracts and other transactions 38-41. arranged with or through foreign officii agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing; military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business 3. Includes reinvested earnings. (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • March 1987 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are not seasonally adjusted. 1986 IItteemm 11998833 11998844 11998855 May June July Aug. Sept. Oct. Nov. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 200,486 217,865 213,146 17,431 19,070 17,707 17,604 17,518 19.33CK 18,595 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 258,048 325,726 345,276 30,272 31,764 34,121 29,476 28,695 30,018 36,187 3 Trade balance -57,562 107,861 -132,129 -12,842 -12,694 -16,414 -11,871 -11,177 -10,688 -17,592 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 1986 TTyyppee 11998833 11998844 11998855 June July Aug. Sept. Oct.P NOV.p Dec.P 1 Total 33,747 34,934 43,191 46,635 47,430 48,161 48,086 47,107 47,838 48,447 2 Gold stock, including Exchange Stabilization Fund1 11,121 11,096 11,090 11,084 11,084 11,084 11,084 11,084 11,084 11,084 3 Special drawing rights2-3 5,025 5,641 7,293 8,213 8,085 8,250 8,295 8,090 8,310 8,395 4 Reserve position in International Monetary Fund2 11,312 11,541 11,952 12,109 12,114 12,017 11,922 11,575 11,659 11,730 5 Foreign currencies4 6,289 6,656 12,856 15,229 16,147 16,810 16,785 16,358 16,785 17,238 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 1986 AAsssseettss 11998833 11998844 11998855 June July Aug. Sept. Oct. Nov. Dec. 1 Deposits 190 267 480 354 233 227 342 303 224 287 Assets held in custody 2 U.S. Treasury securities' 117,670 118,000 121,004 137,820 144,527 148,263 152,275 156,076 156,919 155,835 3 Earmarked gold2 14,414 14,242 14.245 14,128 14,131 14,120 14,115 14,110 14,057 14,048 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. NOTE. Excludes deposits and U.S. Treasury securities held for international Treasury securities payable in dollars and in foreign currencies. and regional organizations. Earmarked gold is gold held for foreign and interna- 2. Earmarked gold is valued at $42.22 per fine troy ounce. tional accounts and is not included in the gold stock of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1986 AAsssseett aaccccoouunntt 11998833 11998844 11998855 May June July Aug. Sept. Oct. Nov.? All foreign countries 1 Total, all currencies 477,090 453,656 458,012 459,587 467,565 454,886 461,440' 474,567 446,581 446,555 7 Claims on United States 115,542 113,393 119,713 117,724 117,812 113,474 117,661 116,382 112,068 108,355 Parent bank 82,026 78,109 87,201 83,404 82,565 79,387 83,779 82,302 79,999 76,207 4 Other banks in United States2 13,664 13,057 13,206 14,039 13,527 13,072 13,624 11,659 11,904 5 Nonbanks2 21,620 19,455 21,114 21,208 20,560 20,810 20,456 20,410 20,244 6 Claims on foreigners 342,689 320,162 315,680 316,337 324,216 314,354 315,583 328,563 305,572 308,401 7 Other branches of parent bank 96,004 95,184 91,399 90,447 98,406 92,641 93,435 103,278 90,412 91,570 8 Banks 117,668 100,397 102,960 103,958 105,648 103,095 102,849 107,503 100,707 103,290 9 Public borrowers 24,517 23,343 23,478 23,846 23,279 23,578 23,720 23,505 24,215 23,357 10 Nonbank foreigners 107,785 101,238 97,843 98,086 96,883 95,040 95,579 94,277 90,238 90,184 11 Other assets 18,859 20,101 22,619 25,526 25,537 27,058 28,196' 29,622 28,941 29,799 12 Total payable in U.S. dollars 371,508 350,636 336,288 322,837 327,639 313,703 318,375' 330,597 309,087 306,633 n Claims on United States 113,436 111,426 116,645 113,864 113,519 109,263 113,636 112,133 107,612 104,226 14 Parent bank 80,909 77,229 85,971 82,110 81,073 78,025 82,261 80,753 78,335 74,707 15 Other banks in United States2 I 13,500 12,454 12,293 12,907 12,373 12,180 12,802 10,544 10,986 16 Nonbanks2 20,697 18,220 19,461 19,539 18,865 19,195 18,578 18,733 18,533 17 Claims on foreigners 247,406 228,600 209,905 198,358 203,934 194,102 194,643 207,701 190,030 190,661 18 Other branches of parent bank 78,431 78,746 72,689 69,684 75,883 69,135 68,604 78,400 67,835 67,835 19 Banks 93,332 76,940 71,748 65,160 66,751 65,033 64,940 68,596 62,836 64,917 70 Public borrowers 17,890 17,626 17,252 17,203 16,498 16,684 16,788 16,521 17,455 16,821 21 Nonbank foreigners 60,977 55,288 48,216 46,311 44,802 43,250 44,311 44,184 41,904 41,088 22 Other assets 10,666 10,610 9,738 10,615 10,186 10,338 10,096' 10,763 11,445 11,746 United Kingdom 23 Total, all currencies 158,732 144,385 148,599 152,075 151,593 145,448 145,619 151,596 142,398 143,800 74 Claims on United States 34,433 27,675 33,157 34,231 31,364 30,223 29,839 30,879 30,747 28,942 75 Parent bank 29,111 21,862 26,970 28,001 25,106 24,252 23,466 24,291 24,800 22,673 76 Other banks in United States2 1 1,429 1,106 1,312 1,365 1,369 1,448 2,092 1,314 1,534 77 Nonbanks2 4,384 5,081 4,918 4,893 4,602 4,925 4,496 4,633 4,735 78 Claims on foreigners 119,280 111,828 110,217 111,823 113,739 108,156 109,024 113,368 105,534 108,145 79 Other branches of parent bank 36,565 37,953 31,576 31,984 34,670 31,613 31,828 34,678 31,268 29,960 30 Banks 43,352 37,443 39,250 39,222 39,430 38,393 38,048 40,204 37,836 41,143 31 Public borrowers 5,898 5,334 5,644 5,427 5,236 5,229 5,336 5,086 5,157 5,038 32 Nonbank foreigners 33,465 31,098 33,747 35,190 34,403 32,921 33,812 33,400 31,273 32,004 33 Other assets 5,019 4,882 5,225 6,021 6,490 7,069 6,756 7,349 6,117 6,713 34 Total payable in U.S. dollars 126,012 112,809 108,626 106,716 104,013 97,641 97,771 103,228 97,295 97,119 35 Claims on United States 33,756 26,868 32,092 32,872 29,944 28,848 28,446 29,512 29,312 27,566 36 Parent bank 28,756 21,495 26,568 27,584 24,693 23,888 22,972 23,826 24,323 22,108 37 Other banks in United States2 1 c rw\ 1,363 1,005 1,152 1,102 1,131 1,194 1,848 1,110 1,364 38 Nonbanks2 4,010 4,519 4,136 4,149 3,829 4,280 3,838 3,879 4,094 39 Claims on foreigners 88,917 82,945 73,475 70,406 70,697 65,472 66,465 70,325 64,873 66,296 40 Other branches of parent bank 31,838 33,607 26,011 26,265 27,559 24,258 24,657 27,151 24,632 23,223 41 Banks 32,188 26,805 26,139 23,134 22,825 21,938 21,636 22,917 21,011 24,018 47 Public borrowers 4,194 4,030 3,999 3,937 3,777 3,793 3,838 3,778 3,859 3,811 43 Nonbank foreigners 20,697 18,503 17,326 17,070 16,536 15,483 16,334 16,479 15,371 15,244 44 Other assets 3,339 2,996 3,059 3,438 3,372 3,321 2,860 3,391 3,110 3,257 Bahamas and Caymans 45 Total, all currencies 152,083 146,811 142,055 132,122 138,944 134,238 137,526 143,082 134,060 131,306 46 Claims on United States 75,309 77,296 74,864 68,807 70,883 69,812 73,047 71,918 68,614 66,011 47 Parent bank 48,720 49,449 50,553 42,868 44,183 43,867 47,694 46,635 44,476 42,166 48 Other banks in United States2 11,544 11,204 10,916 11,730 11,201 10,813 10,641 9,557 9,628 49 Nonbanks2 16,303 13,107 15,023 14,970 14,744 14,540 14,642 14,581 14,217 50 Claims on foreigners 72,868 65,598 63,882 59,292 64,043 60,363 60,167 66,620 59,622 59,446 51 Other branches of parent bank 20,626 17,661 19,042 15,703 20,585 16,682 16,539 22,763 16,985 18,139 57 Banks 36,842 30,246 28,192 26,397 27,078 27,160 27,065 27,779 26,205 25,743 53 Public borrowers 6,093 6,089 6,458 6,717 6,405 6,551 6,675 6,434 7,263 6,697 54 Nonbank foreigners 12,592 11,602 10,190 10,475 9,975 9,970 9,888 9,644 9,169 8,867 55 Other assets 3,906 3,917 3,309 4,023 4,018 4,063 4,312 4,544 5,824 5,849 56 Total payable in U.S. dollars 145,641 141,562 136,794 125,681 132,353 127,910 130,723 136,615 127,361 124,744 1. Beginning with June 1984 data, reported claims held by foreign branches 2. Data for assets vis-a-vis other banks in the United States and vis-a-vis have been reduced by an increase in the reporting threshold for "shell" branches nonbanks are combined for dates before June 1984. from $50 million to $150 million equivalent in total assets, the threshold now applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • March 1987 3.14 Continued 1986 May June July Aug. Sept. Oct. NOV.P All foreign countries 57 Total, all currencies 477,090 453,656 458,012 459,587 467,565 454,886 461,440r 474,567 446,581 446,555 58 Negotiable CDs3 n.a. 37,725 34,607 35,006 34,683 32,656 31,475 33,642 32,444 32,926 59 To United States 188,070 147,583 155,538 144,241 149,848 141,599 145,488 151,281 141,126 137,106 60 Parent bank 81,261 78,739 83,914 77,484 85,126 81,299 79,564 87,927 75,777 75,087 61 Other banks in United States 29,453 18,409 16,894 14,347 16,118 14,191 15,151 14,153 14,791 14,666 62 Nonbanks 77,356 50,435 54,730 52,410 48,604 46,109 50,773 49,201 50,558 47,353 63 To foreigners 269,685 247,907 245,942 258,700 262,329 259,133 262,978 269,322 253,202 256,471 64 Other branches of parent bank 90,615 93,909 89,529 90,228 97,717 91,144 91,307 102,245 87,883 87,865 65 Banks 92,889 78,203 76,814 83,251 81,008 82,854 85,239 81,953 80,709 83,639 66 Official institutions 18,896 20,281 19,523 20,792 20,480 20,608 20,637 20,109 19,436 18,831 67 Nonbank foreigners 68,845 55,514 60,076 64,429 63,124 64,527 65,795 65,015 65,174 66,136 68 Other liabilities 19,335 20,441 21,925 21,640 20,705 21,498 21,463 20,322 19,890 20,052 69 Total payable in U.S. dollars 388,291 367,145 353,470 340,176 346,428 330,183 333,581 349,259 323,699 319,885 70 Negotiable CDs3 n.a. 35,227 31,063 31,513 31,076 28,970 28,091 30,560 29,206 29,752 71 To United States 184,305 143,571 150,161 137,694 142,730 133,908 137,805 143,627 133,301 129,299 72 Parent bank 79,035 76,254 80,888 73,950 81,066 77,048 75,391 83,790 71,858 71,042 73 Other banks in United States 28,936 17,935 16,264 13,575 15,323 13,507 14,364 13,173 13,768 13,811 74 Nonbanks 76,334 49,382 53,009 50,169 46,341 43,353 48,050 46,664 47,675 44,446 75 To foreigners 194,139 178,260 163,361 162,528 163,943 158,314 158,931 167,356 153,536 153,432 76 Other branches of parent bank 73,522 77,770 70,943 69,978 75,805 68,065 66,878 77,464 65,077 63,650 77 Banks 57,022 45,123 37,323 36,335 33,745 34,827 36,460 35,358 33,802 35,161 78 Official institutions 13,855 15,773 14,354 14,049 13,772 14,091 14,125 13,697 13,320 13,139 79 Nonbank foreigners 51,260 39,594 40,741 42,166 40,621 41,331 41,468 40,837 41,337 41,482 80 Other liabilities 9,847 10,087 8,885 8,441 8,679 8,991 8,754 7,716 7,656 7,402 United Kingdom 81 Total, all currencies 158,732 144,385 148,599 152,075 151,593 145,448 145,619 151,596 142,398 143,800 82 Negotiable CDs3 n.a. 34,413 31,260 31,734 31,396 29,295 28,279 30,352 28,847 28,984 83 To United States 55,799 25,250 29,422 27,505 26,270 22,671 22,831 26,540 24,610 22,714 84 Parent bank 14,021 14,651 19,330 16,624 15,892 13,300 14,188 17,399 14,014 13,811 85 Other banks in United States 11,328 3,125 2,974 2,175 1,997 1,999 2,148 2,062 2,382 2,313 86 Nonbanks 30,450 7,474 7,118 8,706 8,381 7,372 6,495 7,079 8,214 6,590 87 To foreigners 95,847 77,424 78,525 83,067 84,362 83,707 84,880 85,554r 80,252 83,320 88 Other branches of parent bank 19,038 21,631 23,389 23,838 27,029 25,106 24,962 28,272 24,194 23,733 89 Banks 41,624 30,436 28,581 31,584 30,505 31,678 32,250 31,190 31,001 34,192 90 Official institutions 10,151 10,154 9,676 9,548 9,543 9,074 9,330 8,652 8,068 7,875 91 Nonbank foreigners 25,034 15,203 16,879 18,097 17,285 17,849 18,338 17,440 16,989 17,520 92 Other liabilities 7,086 7,298 9,392 9,769 9,565 9,775 9,629 9,150 8,689 8,782 93 Total payable in U.S. dollars 131,167 117,497 112,697 109,337 108,375 101,095 101,397 108,249 99,820 99,321 94 Negotiable CDs3 n.a. 33,070 29,337 29,542 29,135 27,015 26,114 28,490 26,927 27,166 95 To United States 54,691 24,105 27,756 25,490 24,214 20,065 20,403 24,039 21,960 20,182 96 Parent bank 13,839 14,339 18,956 16,233 15,331 12,648 13,707 16,984 13,591 13,438 97 Other banks in United States 11,044 2,980 2,826 1,944 1,817 1,738 1,879 1,735 2,108 2,007 98 Nonbanks 29,808 6,786 5,974 7,313 7,066 5,679 4,817 5,320 6,261 4,737 99 To foreigners 73,279 56,923 51,980 50,441 51,056 49,932 50,855 52,645 47,491 48,921 100 Other branches of parent bank 15,403 18,294 18,493 18,043 20,455 17,868 17,790 21,305 17,289 16,689 101 Banks 29,320 18,356 14,344 14,114 13,073 14,251 15,056 14,491 14,123 15,855 102 Official institutions 8,279 8,871 7,661 6,953 6,914 6,658 6,724 6,015 5,685 5,655 103 Nonbank foreigners 20,277 11,402 11,482 11,331 10,614 11,155 11,285 10,834 10,394 10,722 104 Other liabilities 3,197 3,399 3,624 3,864 3,970 4,083 4,025 3,075 3,442 3,052 Bahamas and Caymans 105 Total, all currencies 152,083 146,811 142,055 132,122 138,944 134,238 137,526 143,082 134,060 131,306 106 Negotiable CDs3 n.a. 615 610 634 567 565 470 527 683 784 107 To United States 111,299 102,955 103,813 94,128 98,897 96,636 99,585 102,012 96,840 94,436 108 Parent bank 50,980 47,162 44,811 40,757 47,014 47,862 44,417 49,981 43,470 43,597 109 Other banks in United States 16,057 13,938 12,778 10,738 12,868 11,131 11,952 10,986 11,144 11,131 110 Nonbanks 44,262 41,855 46,224 42,633 39,015 37,643 43,216 41,045 41,226 39,708 111 To foreigners 38,445 40,320 35,053 35,139 37,340 34,827 35,216 38,447 35,427 33,841 112 Other branches of parent bank 14,936 16,782 14,075 13,731 15,882 13,561 13,368 15,918 13,574 12,539 113 Banks 11,876 12,405 10,669 10,318 9,991 9,636 10,216 10,158 8,964 8,534 114 Official institutions 1,919 2,054 1,776 2,144 2,427 2,468 2,386 2,834 2,665 2,577 115 Nonbank foreigners 11,274 9,079 8,533 8,946 9,040 9,162 9,246 9,537 10,224 10,191 116 Other liabilities 2,339 2,921 2,579 2,221 2,140 2,210 2,255 2,096 2,110 2,245 117 Total payable in U.S. dollars 148,278 143,582 138,322 127,918 134,606 130,075 133,256 138,733 130,084 127,252 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 1986 IItteemm 11998844 11998855 May June July Aug. Sept. Oct. NOV.p 1 Total1 180,552 178,356 190,159 194,562 198,784 203,364 209,608 211,053 211,014 By type 2 Liabilities reported by banks in the United States2 26,089 26,734 24,911 26,142 25,143 25,482 29,544 27,188 27,743 3 U.S. Treasury bills and certificates3 59,976 53,252 63,614 65,790 70,721 74,766 75,095 75,457 75,132 U.S. Treasury bonds and notes 4 Marketable 69,019 77,108 82,501 84,113 85,561 85,622 87,546 91,052 91,152 5 Nonmarketable4 5,800 3,550 1,800 1,800 1,300 1,300 1,300 1,300 1,300 6 U.S. securities other than U.S. Treasury securities3 19,668 17,712 17,333 16,717 16,059 16,194 16,123 16,056 15,687 By area 1 Western Europe1 69,776 74,418 76,405 79,641 81,524 83,874 87,261 88,590 87,747 8 Canada 1,528 1,314 1,502 1,529 1,627 1,535 1,626 1,699 1,891 9 Latin America and Caribbean 8,561 11,141 10,595 11,046 11,242 10,801 10,353 10,047 9,116 10 Asia 93,954 86,459 96,487 97,359 100,070 102,362 105,598 105,336 105,421 11 Africa 1,264 1,824 1,718 1,717 1,525 1,958 1,864 1,715 1,544 12 Other countries6 5,469 3,200 3,452 3,270 2,796 2,834 2,906 3,666 5,295 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 1985 1986 IItteemm 11998822 11998833 11998844 Dec. Mar. June Sept. 1 Banks' own liabilities 4,844 5,219 8,586 15,368 21,364 24,077 29,227 2 Banks' own claims 7,707 7,231 11,984 16,161 19,736 20,985 24,516 3 Deposits 4,251 2,731 4,998 8,304 11,318 11,313 13,818 4 Other claims 3,456 4,501 6,986 7,857 8,418 9,672 10,698 5 Claims of banks' domestic customers' 676 1,059 569 580 1,426 1,385 1,660 1. Assets owned by customers of the reporting bank located in the United NOTE. Data on claims exclude foreign currencies held by U.S. monetary States that represent claims on foreigners held by reporting banks for the accounts authorities, of their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • March 1987 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1986 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998833 11998844 11998855 May June July Aug/ Sept. Oct. Nov.? 1 All foreigners 369,607 407,306 435,726 444,528 457,350 469,720 486,514 505,464 497,042 511,738 2 Banks' own liabilities 279,087 306,898 341,070 342,074 345,663 342,267 355,003 372,368 362,332 377,496 3 Demand deposits 17,470 19,571 21,107 19,651 21,332 19,607 20,277 21,388 21,730 24,772 4 Time deposits1 90,632 110,413 117,278 114,055 115,246 117,010 122,322 125,840 123,787 125,605 5 Other2 25,874 26,268 29,305 31,686 31,712 30,650 33,026 36,834 36,043 36,146 6 Own foreign offices3 145,111 150,646 173,381 176,683 177,373 174,999 179,378 188,307 180,773 190,973 7 Banks' custody liabilities4 90,520 100,408 94,656 102,454 111,687 127,453 131,511 133,095 134,710 134,242 8 U.S. Treasury bills and certificates5 68,669 76,368 69,133 80,192 82,701 86,789 8899,,558866 90,467 91,305 9900,,335511 9 Other negotiable and readily transferable instruments6 17,467 18,747 17,964 13,917 14,729 14,702 14,507 14,430 15,085 14,360 10 Other 4,385 5,293 7,558 8,346 14,257 25,962 27,417 28,198 28,319 29,530 11 Nonmonetary international and regional organizations7 5,957 4,454 5,821 4,519 3,441 3,974 5,253 3,038 3,902 4,315 12 Banks' own liabilities 4,632 2,014 2,621 2,388 891 1,857 4,090 1,721 2,426 2,944 13 Demand deposits 297 254 85 99 79 156 165 180 175 135 14 Time deposits1 3,584 1,267 2,067 1,109 551 1,209 3,233 1,243 1,939 2,299 15 Other2 750 493 469 1,179 262 492 691 299 312 511 16 Banks' custody liabilities4 1,325 2,440 3,200 2,131 2,550 2,118 1,163 1,317 1,476 1,371 17 U.S. Treasury bills and certificates 463 916 1,736 1,282 1,619 991 129 218 308 262 18 Other negotiable and readily transferable instruments6 862 1,524 1,464 849 918 1,126 1,033 1,099 1,162 1,104 19 Other 0 0 0 0 13 0 1 0 6 5 20 Official institutions8 79,876 86,065 79,985 88,526 91,932 95,863 100,247 104,640 102,645 102,875 21 Banks' own liabilities 19,427 19,039 20,835 22,018 22,928 22,044 22,710 26,821 24,064 25,165 22 Demand deposits 1,837 1,823 2,077 1,810 2,131 1,609 1,582 1,895 1,840 2,188 23 Time deposits' 7,318 9,374 10,949 9,850 10,347 10,116 9,892 10,918 10,389 11,286 24 Other2 10,272 7,842 7,809 10,358 10,450 10,319 11,236 14,008 11,835 11,691 25 Banks' custody liabilities4 60,448 67,026 59,150 66,508 69,004 73,820 77,538 77,819 78,581 77,710 26 U.S. Treasury bills and certificates5 54,341 59,976 53,252 63,614 65,790 7700,,772211 7744,,776666 7755,,009955 7755,,445577 7755,,113322 27 Other negotiable and readily transferable instruments6 6,082 6,966 5,824 2,754 2,9% 2,892 2,624 2,524 2,920 2,446 28 Other 25 84 75 139 218 207 148 199 204 132 29 Banks9 226,887 248,893 275,589 275,047 284,637 291,827 301,549 318,552 310,650 324,575 30 Banks' own liabilities 205,347 225,368 252,723 251,126 255,673 251,779 260,950 276,496 268,436 282,324 31 Unaffiliated foreign banks 60,236 74,722 79,341 74,444 78,300 76,780 81,573 88,188 87,663 91,351 32 Demand deposits 8,759 10,556 10,271 9,036 10,277 9,180 9,304 9,295 9,714 11,626 33 Time deposits1 37,439 47,095 49,510 46,780 48,480 49,418 52,811 58,006 55,890 57,537 34 Other2 14,038 17,071 19,561 18,627 19,544 18,181 19,458 20,887 20,058 22,189 35 Own foreign offices3 145,111 150,646 173,381 176,682 177,373 174,999 179,378 188,307 180,773 190,973 36 Banks' custody liabilities4 21,540 23,525 22,866 23,922 28,964 40,048 40,598 42,057 42,214 42,250 37 U.S. Treasury bills and certificates 10,178 11,448 9,832 10,841 10,688 10,934 1100,,554433 1100,,663355 1100,,660011 1100,,449911 38 Other negotiable and readily transferable instruments6 7,485 7,236 6,040 5,451 5,448 5,585 5,526 5,538 5,532 5,468 39 Other 3,877 4,841 6,994 7,629 12,828 23,529 24,530 25,883 26,081 26,291 40 Other foreigners 56,887 67,894 74,331 76,436 77,339 78,055 79,465 79,233 79,845 79,972 41 Banks' own liabilities 49,680 60,477 64,892 66,543 66,170 66,587 67,253 67,331 67,407 67,063 42 Demand deposits 6,577 6,938 8,673 8,705 8,845 8,663 9,227 10,018 10,000 10,824 43 Time deposits 42,290 52,678 54,752 56,316 55,869 56,267 56,386 55,673 55,569 54,483 44 Other2 813 861 1,467 1,521 1,456 1,657 1,641 1,640 1,838 1,756 45 Banks' custody liabilities4 7,207 7,417 9,439 9,893 11,169 11,468 12,212 11,903 12,439 12,909 46 U.S. Treasury bills and certificates 3,686 4,029 4,314 4,454 4,604 4,143 44,,114499 44,,551199 44,,993399 44,,446655 47 Other negotiable and readily transferable instruments6 3,038 3,021 4,636 4,862 5,367 5,099 5,325 5,268 5,472 5,342 48 Other 483 367 489 577 1,198 2,226 2,738 2,115 2,028 3,102 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,346 10,476 9,845 6,269 6,419 6,492 6,569 6,554 6,759 6,607 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 1986 AArreeaa aanndd ccoouunnttrryy 11998833 11998844 11998855 May June July Aug. Sept/ Oct. Nov.P 1 Total 369,607 407,306 435,726 444,528 457,350 469,720 486,514 505,464 497,042 511,738 2 Foreign countries 363,649 402,852 429,905 440,009 453,909 465,745 481,261 502,426 493,140 507,423 3 Europe 138,072 153,145 164,114 165,795 166,382 163,016 166,145 173,930 173,487 175,576 4 Austria 585 615 693 897 1,013 988 1,035 1,073 1,018 1,235 Belgium-Luxembourg 2,709 4,114 5,243 5,425 5,224 5,343 5,114 6,165 5,859 6,669 6 Denmark 466 438 513 523 519 560 643 483 478 604 7 Finland 531 418 496 514 484 449 365 406 606 448 8 France 9,441 12,701 15,541 19,423 19,862 20,129 21,469 21,339 21,243 21,641 9 Germany 3,599 3,358 4,835 4,964 4,639 5,646 5,290 5,559 6,624 5,856 10 Greece 520 699 666 552 657 604 570 623 646 755 11 Italy 8,462 10,762 9,667 7,875 8,918 8,828 9,269 8,836 8,757 9,304 17 Netherlands 4,290 4,731 4,212 4,183 4,224 4,682 4,495 4,952 4,827 4,374 13 Norway 1,673 1,548 948 850 710 497 542 576 654 512 14 Portugal 373 597 652 796 795 711 791 758 738 685 IS Spain 1,603 2,082 2,114 1,879 2,069 1,894 1,979 2,082 2,297 2,196 16 1,799 1,676 1,422 1,299 1,118 1,267 944 1,293 1,032 1,301 17 Switzerland 32,246 31,740 29,020 26,848 27,812 28,455 29,064 29,207 29,832 30,576 18 Turkey 467 584 429 434 586 310 285 448 401 1,263 19 United Kingdom 60,683 68,671 76,728 83,885 82,314 78,193 79,947 86,215 84,298 84,058 20 Yugoslavia 562 602 673 556 661 542 482 562 515 544 21 Other Western Europe1 7,403 7,192 9,635 4,165 3,997 3,366 3,277 2,724 2,938 3,087 77 U.S.S.R 65 79 105 34 89 48 32 84 25 16 23 Other Eastern Europe2 596 537 523 693 690 506 553 545 699 452 24 Canada 16,026 16,059 17,427 21,257 22,926 22,359 23,933 24,150 24,340 25,753 ?5 Latin America and Caribbean 140,088 153,381 167,856 161,405 169,650 181,737 187,780 196,704 187,982 189,384 76 Argentina 4,038 4,394 6,032 6,075 6,229 6,336 6,096 6,069 5,748 5,202 27 Bahamas 55,818 56,897 57,657 53,680 60,081 60,764 67,096 69,123 64,106 62,613 78 Bermuda 2,266 2,370 2,765 2,016 2,513 2,201 2,195 2,199 1,918 2,549 79 Brazil 3,168 5,275 5,373 5,542 5,185 5,134 5,179 5,359 5,361 4,684 30 British West Indies 34,545 36,773 42,674 42,116 43,278 55,552 55,614 61,635 58,708 61,465 31 Chile 1,842 2,001 2,049 2,223 2,270 2,227 2,139 2,426 2,403 2,325 3? 1,689 2,514 3,104 3,053 3,419 3,334 3,315 3,373 3,775 3,873 33 Cuba 8 10 11 7 8 7 8 7 6 6 34 1,047 1,092 1,239 1,166 1,262 1,196 1,232 1,260 1,216 1,199 35 Guatemala 788 896 1,071 1,097 1,108 1,123 1,140 1,129 1,126 1,129 36 Jamaica 109 183 122 201 185 184 177 187 151 153 37 10,392 12,303 14,060 13,153 13,633 12,985 13,609 13,137 13,209 13,488 38 Netherlands Antilles 3,879 4,220 4,875 4,798 4,358 4,382 4,383 4,775 4,645 4,705 39 Panama 5,924 6,951 7,514 7,042 6,686 6,639 6,390 6,415 6,524 6,729 40 Peru 1,166 1,266 1,167 1,132 1,254 1,158 1,149 1,256 1,167 1,145 41 Uruguay 1,244 1,394 1,552 1,703 1,664 1,687 1,636 1,589 1,608 1,752 47 Venezuela 8,632 10,545 11,922 11,712 11,734 12,058 11,668 11,709 11,392 11,528 43 Other Latin America and Caribbean 3,535 4,297 4,668 4,689 4,783 4,770 4,753 5,056 4,917 4,837 44 58,570 71,187 72,280 83,817 86,977 91,669 96,021 100,058 99,331 107,025 China 45 249 1,153 1,607 973 1,469 1,795 1,185 1,938 1,585 1,450 46 Taiwan 4,051 4,990 7,786 12,687 13,683 14,331 15,608 16,129 16,534 17,540 47 Hong Kong 6,657 6,581 8,067 8,745 8,656 8,934 9,026 9,349 8,663 9,347 48 India 464 507 712 577 695 562 685 651 755 701 49 997 1,033 1,466 1,758 1,416 1,572 1,474 1,611 1,530 1,541 50 Israel 1,722 1,268 1,601 1,671 1,725 1,731 1,686 2,109 1,986 2,380 51 18,079 21,640 23,077 29,689 31,325 36,286 38,221 39,951 41,311 46,155 52 Korea 1,648 1,730 1,665 1,336 1,414 1,392 1,251 1,282 1,446 1,128 53 Philippines 1,234 1,383 1,140 1,331 1,306 1,363 1,458 1,400 1,707 1,720 54 Thailand 747 1,257 1,358 1,155 1,068 1,104 1,080 1,100 1,115 1,085 55 Middle-East oil-exporting countries3 12,976 16,804 14,523 14,537 14,581 12,739 13,227 13,056 12,045 12,994 56 Other Asia 9,748 12,841 9,276 9,355 9,638 9,861 11,121 11,481 10,654 10,984 57 2,827 3,396 4,883 4,227 4,291 4,041 4,227 4,158 3,973 4,022 58 Egypt 671 647 1,363 910 1,079 820 1,088 843 640 710 59 Morocco 84 118 163 92 87 93 82 91 86 84 60 South Africa 449 328 388 414 414 609 438 318 347 264 61 Zaire 87 153 163 105 92 65 60 80 79 96 62 Oil-exporting countries4 620 1,189 1,494 1,490 1,463 1,368 1,371 1,625 1,623 1,593 63 Other Africa 917 961 1,312 1,216 1,156 1,086 1,189 1,203 1,199 1,276 64 Other countries 8,067 5,684 3,347 3,507 3,682 2,924 3,155 3,425 4,026 5,662 65 Australia 7,857 5,300 2,779 2,744 2,943 2,173 2,459 2,785 2,943 4,286 66 All other 210 384 568 763 739 751 696 640 1,083 1,376 67 Nonmonetary international and regional organizations 5,957 4,454 5,821 4,519 3,441 3,974 5,253 3,038 3,902 4,315 68 International 5,273 3,747 4,806 3,669 2,471 2,714 4,147 1,759 2,748 3,232 69 Latin American regional 419 587 894 748 845 922 916 972 957 927 70 Other regional5 265 120 121 102 126 338 190 307 197 157 1. Includes the Bank for International Settlements. Beginning April 1978, also 4. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 5. Asian, African, Middle Eastern, and European regional organizations, 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German except the Bank for International Settlements, which is included in "Other Democratic Republic, Hungary, Poland, and Romania. Western Europe." 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • March 1987 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 1986 AArreeaa aanndd ccoouunnttrryy 11998833 11998844 11998855 May June July Aug. Sept. Oct. NOV.P 1 Total 391,312 400,162 401,608 394,667 403,843 403,494 403,729 416,577' 406,280 417,502 2 Foreign countries 391,148 399,363 400,577 394,259 403,387 403,002 403,309 416,376' 405,907 417,331 3 Europe 91,927 99,014 106,413 100,903 104,441 100,321 100,323 106,735' 103,616 106,348 4 Austria 401 433 598 501 609 619 694 654 619 748 5 Belgium-Luxembourg 5,639 4,794 5,772 5,696 7,243 6,113 6,990 6,574' 7,689 8,149 6 Denmark 1,275 648 706 882 750 856 783 807 796 764 7 Finland 1,044 898 823 866 983 1,041 961 1,085 1,111 1,176 8 France 8,766 9,157 9,124 8,861 9,455 9,583 9,483 10,209' 9,512 9,499 9 Germany 1,284 1,306 1,267 1,176 1,095 1,426 1,181 1,599' 1,320 1,654 10 Greece 476 817 991 723 629 622 660 706 626 792 11 Italy 9,018 9,119 8,848 6,806 7,474 7,266 5,981 6,797 7,679 8,323 12 Netherlands 1,267 1,356 1,258 1,384 1,407 1,427 1,254 2,039' 2,114 2,424 13 Norway 690 675 706 746 905 614 698 732 711 712 14 Portugal 1,114 1,243 1,058 850 776 789 757 734 699 682 15 Spain 3,573 2,884 1,908 1,986 2,001 1,863 1,749 1,995 1,922 1,722 16 Sweden 3,358 2,230 2,219 2,239 2,478 2,906 2,404 2,487 2,375 2,343 17 Switzerland 1,863 2,123 3,171 3,134 3,553 2,617 3,306 2,665 2,661 3,574 18 Turkey 812 1,130 1,200 1,649 1,856 1,709 1,649 1,586' 1,612 3,527 19 United Kingdom 47,364 56,185 62,566 59,332 58,224 56,249 57,846 61,997' 5588,,009922 56,610 20 Yugoslavia 1,718 1,886 1,964 1,928 2,005 1,902 1,852 1,871' 11,,888866 1,897 21 Other Western Europe1 477 596 998 491 1,253 1,102 521 791 799 600 22 U.S.S.R 192 142 130 489 568 504 528 405' 296 225 23 Other Eastern Europe2 1,598 1,389 1,107 1,164 1,176 1,112 1,026 1,002 1,097 927 24 Canada 16,341 16,109 16,482 17,910 18,270 18,303 19,401 18,112 19,532 20,338 25 Latin America and Caribbean 205,491 207,862 202,674 193,625 200,733 202,204 197,866 205,579' 196,413 196,512 26 Argentina 11,749 11,050 11,462 11,921 12,079 12,282 12,009 12,119 12,243 12,017 27 Bahamas 59,633 58,009 58,258 52,537 57,075 56,250 55,453 61,705' 53,557 53,858 28 Bermuda 566 592 499 238 274 432 373 320 452 556 29 Brazil 24,667 26,315 25,283 25,271 24,855 24,915 24,762 24,856 24,738 25,880 30 British West Indies 35,527 38,205 38,881 37,072 40,043 41,923 39,836 40,360' 39,535 39,248 31 Chile 6,072 6,839 6,603 6,537 6,507 6,514 6,449 6,489' 6,514 6,526 32 Colombia 3,745 3,499 3,249 2,820 2,789 2,776 2,642 2,633' 2,674 22,,666655 33 Cuba 0 0 0 0 0 0 0 0 2 11 34 Ecuador 2,307 2,420 2,390 2,382 2,397 2,366 2,375 2,387 2,418 2,395 35 Guatemala3 129 158 194 112 136 113 127 135 122 138 36 Jamaica3 215 252 224 218 244 209 209 224 247 216 37 Mexico 34,802 34,885 31,799 31,493 31,399 31,168 30,839 31,037 31,024 30,659 38 Netherlands Antilles 1,154 1,350 1,340 1,075 1,086 996 1,060 1,133 972 911 39 Panama 7,848 7,707 6,645 5,919 5,860 6,280 5,862 6,377 6,094 5,354 40 Peru 2,536 2,384 1,947 1,757 1,738 1,703 1,677 1,600 1,625 1,618 41 Uruguay 977 1,088 960 951 931 927 936 1,051 930 943 42 Venezuela 11,287 11,017 10,871 11,326 11,304 11,364 11,289 11,177' 11,180 11,014 43 Other Latin America and Caribbean 2,277 2,091 2,067 1,997 2,015 1,985 1,969 1,977' 2,086 2,513 44 Asia 67,837 66,316 66,212 73,965 72,033 74,253 77,792 7788,,007733'' 7788,,555588 8866,,220099 China 45 Mainland 292 710 639 703 567 779 526 758 758 793 46 Taiwan 1,908 1,849 1,535 1,446 1,238 1,089 1,637 1,903 1,528 1,812 47 Hong Kong 8,489 7,293 6,796 8,315 7,526 8,445 8,632 8,883 8,337 7,598 48 India 330 425 450 420 440 372 375 355 316 327 49 Indonesia 805 724 698 736 675 720 729 689 694 722 50 Israel 1,832 2,088 1,991 1,766 1,772 1,567 1,541 1,622' 1,630 1,615 51 Japan 30,354 29,066 31,249 38,629 38,524 40,902 43,327 42,751 45,167 53,265 52 Korea 9,943 9,285 9,226 9,176 8,977 8,900 8,476 7,846' 7,023 6,569 53 Philippines 2,107 2,555 2,224 2,263 2,393 2,168 2,128 2,148 2,071 1,972 54 Thailand 1,219 1,125 845 716 706 711 736 636 611 595 55 Middle East oil-exporting countries4 4,954 5,044 4,298 3,948 3,680 2,919 2,764 3,724 3,396 3,778 56 Other Asia 5,603 6,152 6,260 5,845 5,535 5,680 6,921 6,758' 7,027 7,162 57 Africa 6,654 6,615 5,407 4,890 4,971 4,817 4,693 4,651' 4,531 4,737 58 Egypt 747 728 721 619 740 701 633 593 577 560 59 Morocco 440 583 575 640 642 615 617 636 621 621 60 South Africa 2,634 2,795 1,942 1,743 1,705 1,661 1,683 1,607 1,549 1,586 61 Zaire 33 18 20 17 17 17 21 33' 35 27 62 Oil-exporting countries5 1,073 842 630 417 415 413 445 511 545 690 63 Other 1,727 1,649 1,520 1,455 1,452 1,410 1,294 1,271 1,203 1,253 64 Other countries 2,898 3,447 3,390 2,966 2,939 3,103 3,232 3,225' 3,259 3,187 65 Australia 2,256 2,769 2,413 2,050 2,023 2,159 2,293 2,221' 2,143 1,985 66 All other 642 678 978 916 916 945 940 1,004 1,115 1,202 67 Nonmonetary international and regional organizations6 164 800 1,030 408 456 493 420 200 372 171 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 1986 TTyyppee ooff ccllaaiimm 11998833 11998844 11998855 May June July Aug. Sept/ Oct. Nov.? 1 Total 444444422222226666666,,,,,,,2222222XXXXXXX5555555 444444433333333333333,,,,,,,000000077777778888888 444444433333330000000,,,,,,,444444488888889999999 444444433333332222222,,,,,,,333333322222226666666 444444444444448888888,,,,,,,444444422222226666666 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 333333399999991111111,,,,,,,333333311111112222222 444444400000000000000,,,,,,,111111166666662222222 444444400000001111111,,,,,,,666666600000008888888 394,667 444444400000003333333,,,,,,,888888844444443333333 403,494 403,729 444444411111116666666,,,,,,,555555577777777777777 406,280 417,502 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 55555557777777,,,,,,,555555566666669999999 66666662222222,,,,,,,222222233333337777777 66666660000000,,,,,,,555555500000007777777 59,972 66666660000000,,,,,,,666666622222222222222 60,667 59,947 66666660000000,,,,,,,666666600000003333333 60,707 60,603 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 111111144444446666666,,,,,,,333333399999993333333 111111155555556666666,,,,,,,222222211111116666666 111111177777774444444,,,,,,,222222266666661111111 173,094 111111188888881111111,,,,,,,888888866666667777777 181,590 182,151 111111199999993333333,,,,,,,333333355555555555555 182,548 189,401 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222223333333,,,,,,,888888833333337777777 111111122222224444444,,,,,,,999999933333332222222 111111111111116666666,,,,,,,666666655555554444444 112,522 111111111111112222222,,,,,,,999999999999996666666 114,101 115,922 111111111111116666666,,,,,,,888888800000008888888 117,386 120,025 66 DDeeppoossiittss 44444447777777,,,,,,,111111122222226666666 44444449999999,,,,,,,222222222222226666666 44444448888888,,,,,,,333333377777772222222 47,493 44444447777777,,,,,,,000000044444441111111 49,326 52,410 55555552222222,,,,,,,111111177777778888888 53,068 52,592 77 OOtthheerr 77777776666666,,,,,,,777777711111111111111 77777775555555,,,,,,,777777700000006666666 66666668888888,,,,,,,222222288888882222222 65,029 66666665555555,,,,,,,999999955555555555555 64,775 63,512 66666664444444,,,,,,,666666633333330000000 64,319 67,433 88 AAllll ootthheerr ffoorreeiiggnneerrss 66666663333333,,,,,,,555555511111114444444 55555556666666,,,,,,,777777777777777777777 55555550000000,,,,,,,111111188888885555555 49,079 44444448888888,,,,,,,333333355555558888888 47,137 45,708 44444445555555,,,,,,,888888811111111111111 45,639 47,474 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 .... 33333334444444,,,,,,,999999900000003333333 33333332222222,,,,,,,999999911111116666666 22222228888888,,,,,,,888888888888881111111 22222228888888,,,,,,,444444488888883333333 33333331111111,,,,,,,888888844444449999999 2222222,,,,,,,999999966666669999999 3333333,,,,,,,333333388888880000000 3333333,,,,,,,333333333333335555555 3333333,,,,,,,444444477777775555555 3333333,,,,,,,777777744444443333333 11 Negotiable and readily transferable 22222226666666,,,,,,,000000066666664444444 22222223333333,,,,,,,888888800000005555555 11111119999999,,,,,,,333333333333332222222 22222220000000,,,,,,,222222299999994444444 22222222222222,,,,,,,333333333333337777777 12 Outstanding collections and other 5555555,,,,,,,888888877777770000000 5555555,,,,,,,777777733333332222222 6666666,,,,,,,222222211111114444444 4444444,,,,,,,777777711111115555555 5555555,,,,,,,777777766666669999999 13 MEMO: Customer liability on 33333337777777,,,,,,,777777711111115555555 33333337777777,,,,,,,111111100000003333333 22222228888888,,,,,,,444444488888887777777 22222228888888,,,,,,,333333322222228888888 22222227777777,,,,,,,111111177777772222222 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 46,337 40,714 37,399 47,351 46,200 47,464 48,575 44,515 n.a. 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 1985 1986 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998822 11998833 11998844 Dec. Mar. June Sept. 1 228,150 243,715 243,952 227,903 221,177 222,255 224,317 By borrower 2 Maturity of 1 year or less' 173,917 176,158 167,858 160,824 152,696 152,247 154,731 3 Foreign public borrowers 21,256 24,039 23,912 26,302 23,845 23,183 22,392 4 All other foreigners 152,661 152,120 143,947 134,522 128,851 129,065 132,339 5 Maturity of over 1 year' 54,233 67,557 76,094 67,078 68,481 70,008 69,586 6 Foreign public borrowers 23,137 32,521 38,695 34,512 36,681 37,177 38,115 7 All other foreigners 31,095 35,036 37,399 32,567 31,800 32,830 31,471 By area Maturity of 1 year or less' 8 Europe 50,500 56,117 58,498 56,585 53,462 57,929 59,331 9 Canada 7,642 6,211 6,028 6,401 5,899 6,043 5,968 10 Latin America and Caribbean 73,291 73,660 62,791 63,328 59,538 57,134 57,814 11 37,578 34,403 33,504 27,966 28,034 25,772 26,713 12 Africa 3,680 4,199 4,442 3,753 3,331 3,297 3,038 13 All other2 1,226 1,569 2,593 2,791 2,433 2,073 1,866 Maturity of over 1 year' 14 Europe 11,636 13,576 9,605 7,634 7,783 7,934 7,285 15 Canada 1,931 1,857 1,882 1,805 1,925 2,256 1,861 16 Latin America and Caribbean 35,247 43,888 56,144 50,674 52,165 53,572 54,147 17 3,185 4,850 5,323 4,502 4,251 4,034 3,990 18 Africa 1,494 2,286 2,033 1,538 1,634 1,497 1,479 19 All other2 740 1,101 1,107 926 722 714 824 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • March 1987 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2 Billions of dollars, end of period 1984 1985 1986 AArreeaa oorr ccoouunnttrryy 11998822 11998833 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept.? 1 Total 436.1 433.9 406.4 405.7 405.5 396.8 394.9 391.9 394.3 390.9 391.4 2 G-10 countries and Switzerland 179.6 167.8 147.5 148.1 153.0 146.7 152.0 148.5 156.4 159.8 158.6 3 Belgium-Luxembourg 13.1 12.4 9.8 8.7 9.3 8.9 9.5 9.3 8.3 9.0 8.5 4 France 17.1 16.2 14.3 14.1 14.5 13.5 14.8 12.3 13.8 15.1 14.6 5 Germany 12.7 11.3 10.0 9.0 8.9 9.6 9.8 10.5 11.2 11.5 12.5 6 Italy 10.3 11.4 9.7 10.1 10.0 8.6 8.4 9.8 8.5 9.3 8.1 7 Netherlands 3.6 3.5 3.4 3.9 3.8 3.7 3.4 3.7 3.5 3.4 3.9 8 Sweden 5.0 5.1 3.5 3.2 3.1 2.9 3.1 2.8 2.9 2.9 2.7 9 Switzerland 5.0 4.3 3.9 3.9 4.2 4.0 4.1 4.4 5.4 5.6 4.8 10 United Kingdom 72.1 65.3 57.1 60.3 65.4 65.7 67.1 64.6 68.5 68.9 70.1 11 Canada 10.4 8.3 8.1 7.9 9.1 8.1 7.6 7.0 6.2 6.8 6.1 12 Japan 30.2 29.9 27.7 27.1 24.7 21.7 24.3 24.2 28.1 27.4 27.4 13 Other developed countries 33.5 36.0 36.2 33.6 32.8 32.3 32.0 30.4 31.6 30.6 29.4 14 Austria 1.9 1.9 1.8 1.6 1.6 1.6 1.7 1.6 1.6 1.7 1.7 15 Denmark 2.4 3.4 2.9 2.2 2.1 1.9 2.1 2.4 2.5 2.4 2.3 16 Finland 2.2 2.4 1.9 1.9 1.8 1.8 1.8 1.6 1.9 1.6 1.7 17 Greece 3.0 2.8 3.2 2.9 2.9 2.9 2.8 2.6 2.5 2.6 2.3 18 Norway 3.3 3.3 3.2 3.0 2.9 2.9 3.4 2.9 2.7 3.0 2.7 19 Portugal 1.5 1.5 1.6 1.4 1.4 1.3 1.4 1.3 1.1 1.0 1.0 20 Spain 7.5 7.1 6.9 6.5 6.4 5.9 6.1 5.8 6.4 6.4 6.7 21 Turkey 1.4 1.7 2.0 1.9 1.9 2.0 2.1 1.9 2.3 2.5 2.1 22 Other Western Europe 2.3 1.8 1.7 1.7 1.7 1.8 1.7 2.0 2.4 2.1 1.6 23 South Africa 3.7 4.7 5.0 4.5 4.2 3.9 3.3 3.2 3.2 3.1 3.1 24 Australia 4.3 5.4 6.1 6.0 6.1 6.2 5.6 5.0 4.9 4.2 4.2 25 OPEC countries3 26.9 28.4 24.4 24.9 24.5 22.8 22.7 21.6 20.7 20.6 20.0 26 Ecuador 2.2 2.2 2.1 2.2 2.2 2.2 2.2 2.1 2.2 2.1 2.1 27 Venezuela 10.5 9.9 9.2 9.3 9.3 9.3 9.0 8.9 8.7 8.8 8.7 28 Indonesia 2.9 3.4 3.2 3.3 3.3 3.1 3.1 3.0 3.3 3.0 2.8 29 Middle East countries 8.5 9.8 7.3 7.9 7.4 6.1 6.2 5.5 4.8 5.0 4.7 30 African countries 2.8 3.0 2.5 2.3 2.3 2.2 2.3 2.0 1.8 1.7 1.7 31 Non-OPEC developing countries 106.5 110.8 111.6 111.8 110.8 110.0 107.8 105.1 103.5 101.4 99.6 Latin America 32 Argentina 8.9 9.5 9.: 8.7 8.6 8.6 8.9 8.9 8.9 9.2 9.3 33 Brazil 22.9 23.1 26.3 26.3 26.4 26.6 25.5 25.6 25.7 25.3 25.2 34 Chile 6.3 6.4 7.1 7.0 7.0 6.9 6.6 7.0 7.0 7.1 7.1 35 Colombia 3.1 3.2 2.9 2.9 2.8 2.7 2.6 2.7 2.3 2.2 2.0 36 Mexico 24.2 25.8 26.0 25.7 25.5 25.3 24.4 24.2 24.0 23.8 23.8 37 Peru 2.6 2.4 2.2 2.2 2.2 2.1 1.9 1.8 1.7 1.6 1.5 38 Other Latin America 4.0 4.2 3.9 3.9 3.8 3.7 3.5 3.4 3.3 3.3 3.4 Asia China 39 Mainland .2 .3 .5 .7 .7 .3 1.1 .5 .6 .6 .6 40 Taiwan 5.3 5.2 5.1 5.1 5.3 5.5 5.1 4.5 4.3 3.7 4.3 41 India .5 .9 1.0 .9 .9 .9 1.1 1.2 1.2 1.3 1.3 42 Israel 2.3 1.9 1.7 1.8 1.7 2.3 1.5 1.6 1.3 1.6 1.4 43 Korea (South) 10.7 11.2 10.3 10.6 10.4 10.0 10.4 9.4 9.5 8.6 7.3 44 Malaysia 2.1 2.8 2.9 2.7 2.7 2.8 2.7 2.4 2.2 2.0 2.1 45 Philippines 6.3 6.1 5.9 6.0 6.1 6.0 6.0 5.7 5.6 5.7 5.4 46 Thailand 1.6 2.2 1.8 1.8 1.7 1.6 1.6 1.4 1.3 1.1 1.0 47 Other Asia 1.1 1.0 .9 1.1 1.1 .9 .9 1.0 .9 .8 .7 Africa 48 Egypt 1.2 1.5 1.2 1.2 1.1 1.0 1.0 1.0 .9 .9 .7 49 Morocco .7 .8 .8 .8 .8 .8 .9 .9 .9 .9 .9 50 Zaire .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 51 Other Africa4 2.4 2.3 1.9 2.1 2.2 2.0 2.0 1.9 1.9 1.7 1.6 52 Eastern Europe 6.2 5.3 4.5 4.4 4.3 4.3 4.6 4.2 4.0 4.0 3.3 53 U.S.S.R .3 .2 .2 .1 .2 .3 .2 .1 .3 .3 .1 54 Yugoslavia 2.2 2.4 2.3 2.3 2.2 2.2 2.4 2.2 2.0 2.0 1.9 55 Other 3.7 2.8 2.1 2.0 1.9 1.8 1.9 1.8 1.7 1.7 1.4 56 Offshore banking centers 66.0 68.9 65.1 65.6 63.2 63.9 58.8 65.4 61.5 57.2 62.6 57 Bahamas 19.0 21.7 23.3 21.5 20.1 21.1 16.6 21.4 21.5 17.3 20.0 58 Bermuda .9 .9 1.0 .9 .7 .9 .8 .7 .7 .4 .5 59 Cayman Islands and other British West Indies 12.8 12.2 11.1 11.8 12.3 12.1 12.3 13.4 11.3 12.8 13.2 60 Netherlands Antilles 3.3 4.2 3.1 3.4 3.3 3.2 2.3 2.3 2.3 2.3 1.9 61 Panama5 7.5 5.8 5.6 6.7 5.5 5.4 6.1 6.0 5.9 5.5 6.8 62 Lebanon .1 .1 .1 .1 .1 .1 .0 .1 .1 .1 .1 63 Hong Kong 13.3 13.8 11.6 11.4 11.4 11.4 11.4 11.5 11.4 9.4 10.4 64 Singapore 9.1 10.3 9.4 9.8 9.9 9.7 9.4 9.9 8.4 9.3 9.7 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 17.5 16.8 17.1 17.3 16.9 16.9 17.3 16.9 16.7 17.2 17.8 1. The banking offices covered by these data are the U.S. offices and foreign from $50 million to $150 million equivalent in total assets, the threshold now branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. applicable to all reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. Besides the Organization of Petroleum Exporting Countries shown individ- (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are ually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq, adjusted to exclude the claims on foreign branches held by a U.S. office or another Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well foreign branch of the same banking institution. The data in this table combine as Bahrain and Oman (not formally members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 4. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 5. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 6. Foreign branch claims only. 2. Beginning with June 1984 data, reported claims held by foreign branches 7. Includes New Zealand, Liberia, and international and regional organizahave been reduced by an increase in the reporting threshold for "shell" branches tions. 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 States' Millions of dollars, end of period 1985 1986 Type, and area or country 11998822 11998833 11998844 June Sept. Dec. Mar. JuneP 1 Total 27,512 25,346 29,357 24,574 25,256 27,230 25,635 24,222 2 Payable in dollars 24,280 22,233 26,389 21,899 22,408 23,994 22,022 20,692 3 Payable in foreign currencies 3,232 3,113 2,968 2,675 2,848 3,236 3,613 3,530 By type 4 Financial liabilities 11,066 10,572 14,509 11,528 11,815 13,005 12,328 11,117 5 Payable in dollars 8,858 8,700 12,553 9,543 9,824 10,955 10,205 9,177 6 Payable in foreign currencies 2,208 1,872 1,955 1,985 1,991 2,050 2,123 1,940 7 Commercial liabilities 16,446 14,774 14,849 13,046 13,441 14,225 13,307 13,105 8 Trade payables 9,438 7,765 7,005 5,797 5,694 6,685 5,598 5,503 9 Advance receipts and other liabilities... 7,008 7,009 7,843 7,249 7,747 7,540 7,710 7,602 10 Payable in dollars 15,423 13,533 13,836 12,356 12,584 13,039 11,817 11,516 11 Payable in foreign currencies 1,023 1,241 1,013 690 857 1,186 1,490 1,590 By area or country Financial liabilities 12 Europe 6,501 5,742 6,728 5,944 6,568 7,270 6,971 6,705 13 Belgium-Luxembourg 505 302 471 351 367 329 338 288 14 France 783 843 995 865 849 857 851 701 15 Germany 467 502 489 474 493 419 371 262 16 Netherlands 711 621 590 604 624 745 630 651 17 Switzerland 792 486 569 566 593 676 702 561 18 United Kingdom 3,102 2,839 3,297 2,835 3,351 3,924 3,736 3,960 19 Canada 746 764 863 850 826 760 753 287 20 Latin America and Caribbean 2,751 2,596 5,086 3,106 2,619 3,152 2,788 2,404 21 Bahamas 904 751 1,926 1,107 1,145 1,120 954 859 22 Bermuda 14 13 13 10 4 4 13 14 23 Brazil 28 32 35 27 23 29 26 27 24 British West Indies 1,027 1,041 2,103 1,734 1,234 1,814 1,610 1,362 25 Mexico 121 213 367 32 28 15 20 30 26 Venezuela 114 124 137 3 3 3 4 3 27 Asia 1,039 1,424 1,777 1,584 1,767 1,790 1,799 1,660 28 Japan 715 991 1,209 994 1,136 1,173 1,192 1,189 29 Middle East oil-exporting countries2.. 169 170 155 147 82 82 78 43 30 Africa 17 19 14 14 14 12 12 12 0 0 0 0 0 0 0 0 31 Oil-exporting countries3 12 27 41 30 22 21 4 49 32 All other4 Commercial liabilities 3,831 3,245 4,001 3,461 3,897 4,074 3,915 3,761 33 Europe 52 62 48 53 56 62 66 58 34 Belgium-Luxembourg 598 437 438 423 431 453 382 357 35 France 468 427 622 428 601 607 546 512 36 Germany 346 268 245 284 386 364 545 587 37 Netherlands 367 241 257 349 289 379 251 283 38 Switzerland 1,027 732 1,095 730 858 976 957 861 39 United Kingdom 40 Canada 1,495 1,841 1,975 1,494 1,383 1,449 1,442 1,351 41 Latin America and Caribbean 1,570 11,,447733 1,871 1,225 1,262 1,088 1,097 1,304 42 Bahamas 16 11 7 12 2 12 26 10 43 Bermuda 117 67 114 77 105 77 210 294 44 Brazil 60 44 124 90 120 58 64 107 45 British West Indies 32 6 32 1 15 44 7 35 46 Mexico 436 585 586 492 415 430 256 235 47 Venezuela 642 432 636 309 311 212 364 488 48 Asia 8,144 6,741 5,285 5,246 5,353 6,046 5,384 5,068 49 Japan 1,226 1,247 1,256 1,219 1,567 1,799 2,039 2,095 50 Middle East oil-exporting countries2'5. 5,503 4,178 2,372 2,396 2,109 2,829 2,171 1,731 51 Africa 753 553 588 631 572 587 486 569 52 Oil-exporting countries3 277 167 233 265 235 238 148 215 53 All other4 651 921 1,128 988 975 982 983 1,053 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • March 1987 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1985 1986 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998822 11998833 11998844 June Sept. Dec. Mar. Jun e? 1 Total 28,725 34,911 29,901 26,750 28,610 28,085 30,927 32,519 2 Payable in dollars 26,085 31,815 27,304 24,121 25,743 25,783 28,740 30,337 3 Payable in foreign currencies 2,640 3,096 2,597 2,629 2,866 2,302 2,187 2,182 By type 4 Financial claims 17,684 23,780 19,254 16,695 19,203 18,099 21,540 23,324 5 Deposits 13,058 18,496 14,621 12,839 15,315 14,852 18,146 20,034 6 Payable in dollars 12,628 17,993 14,202 12,283 14,611 14,237 17,689 19,479 / Payable in foreign currencies 430 503 420 556 704 615 457 555 8 Other financial claims 4,626 5,284 4,633 3,856 3,889 3,248 3,394 3,290 9 Payable in dollars 2,979 3,328 3,190 2,375 2,351 2,213 2,301 2,269 10 Payable in foreign currencies 1,647 1,956 1,442 1,480 1,538 1,035 1,093 1,021 11 Commercial claims 11,041 11,131 10,646 10,055 9,406 9,986 9,387 9,195 12 Trade receivables 9,994 9,721 9,177 8,688 7,932 8,696 8,086 7,858 13 Advance payments and other claims 1,047 1,410 1,470 1,367 1,475 1,290 1,301 1,337 14 Payable in dollars 10,478 10,494 9,912 9,463 8,782 9,333 8,750 8,589 15 Payable in foreign currencies 563 637 735 592 624 652 637 606 By area or country Financial claims 16 Europe 4,873 6,488 5,762 5,477 6,463 6,327 6,859 88,,887777 17 Belgium-Luxembourg 15 37 15 15 12 10 10 1111 18 France 134 150 126 51 132 184 217 257 19 Germany 178 163 224 175 158 223 172 148 20 Netherlands 97 71 66 46 127 61 61 17 21 Switzerland 107 38 66 16 53 74 166 177 22 United Kingdom 4,064 5,817 4,864 4,900 5,736 5,522 5,986 8,051 23 Canada 4,377 5,989 3,988 3,756 4,037 3,256 4,024 4,464 24 Latin America and Caribbean 7,546 10,234 8,216 6,616 7,603 7,697 9,934 9,151 25 Bahamas 3,279 4,771 3,306 2,204 2,315 2,685 3,500 3,251 26 Bermuda 32 102 6 6 5 6 2 17 27 Brazil 62 53 100 96 92 78 77 75 28 British West Indies 3,255 4,206 4,043 3,747 4,632 4,440 5,904 5,359 29 Mexico 274 293 215 206 201 180 178 176 30 Venezuela 139 134 125 100 73 48 43 42 31 698 764 961 640 969 696 621 723 32 Japan 153 297 353 281 725 475 350 499 33 Middle East oil-exporting countries2 15 4 13 6 6 4 2 2 34 Africa 158 147 210 111 104 103 87 89 35 Oil-exporting countries3 48 55 85 25 31 29 27 25 36 All other4 31 159 117 95 26 21 14 20 Commercial claims 37 Europe 3,826 3,670 3,801 3,680 3,235 3,533 3,387 3,304 38 Belgium-Luxembourg 151 135 165 212 158 175 148 131 39 France 474 459 440 408 360 426 384 390 40 Germany 357 349 374 375 336 346 396 414 41 Netherlands 350 334 335 301 286 284 221 237 42 Switzerland 360 317 271 376 208 284 248 221 43 United Kingdom 811 809 1,063 950 779 898 793 668 44 Canada 633 829 1,021 1,065 1,100 1,023 1,060 970 45 Latin America and Caribbean 2,526 22,,669955 2,052 1,803 1,660 1,753 1,599 1,590 46 Bahamas 21 88 8 11 18 13 27 24 47 Bermuda 261 190 115 65 62 93 82 148 48 Brazil 258 493 214 193 211 206 231 194 49 British West Indies 12 7 7 29 7 6 7 24 50 Mexico 775 884 583 468 416 510 388 320 51 Venezuela 351 272 206 181 149 157 172 180 52 3,050 3,063 3,073 2,707 22,,771122 2,982 2,606 2,649 53 Japan 1,047 1,114 1,191 954 888844 1,016 801 846 54 Middle East oil-exporting countries2 751 737 668 593 541 638 630 691 55 Africa 588 588 470 464 434 437 491 447 56 Oil-exporting countries3 140 139 134 137 131 130 167 171 57 All other4 417 286 229 336 264 257 244 235 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 1986 1986 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998844 11998855 N Ja o n v . . - May June July Aug. Sept. Oct. NOV.P U.S. corporate securities STOCKS 1 Foreign purchases 59,834 81,995 133,913 13,244 11,176 13,268 12,045 12,206 10,954 12,010 2 Foreign sales 62,814 77,054 117,022 10,388 10,832 11,258 10,615 10,948 12,284 12,076 3 Net purchases, or sales (—) -2,980 4,941 16,890 2,856 344 2,010 1,430 1,258 -1,330 -66 4 Foreign countries -3,109 4,857 17,178 2,814 464 2,075 1,470 1,303 -1,187 -32 5 Europe -3,077 2,057 9,014 1,571 192 576 824 587 -1,123 -482 6 France -405 -438 349 99 219 182 105 30 -92 -69 7 Germany -50 730 317 99 -174 -130 -42 9 -104 -3 8 Netherlands -357 -123 922 236 97 52 50 36 -19 -50 9 Switzerland -1,542 -75 1,502 376 -134 -198 44 70 -405 -246 10 United Kingdom -677 1,665 4,469 563 38 481 521 462 -481 -113 11 Canada 1,691 356 669 44 131 214 97 93 -125 26 1? Latin America and Caribbean 495 1,718 2,803 489 60 269 108 145 154 365 N Middle East1 -1,992 238 709 117 -236 181 78 58 -51 -92 14 Other Asia -378 296 3,414 472 288 830 376 346 16 80 15 -22 24 280 43 -3 30 -1 -13 39 23 16 Other countries 175 168 289 78 32 -23 -13 86 -97 48 17 Nonmonetary international and regional organizations 129 84 -287 42 -121 -65 -40 -45 -143 -34 BONDS2 18 Foreign purchases 39,296 86,587 111,190 12,044 8,964 8,937 9,420 10,160 9,712 9,739 19 Foreign sales 26,399 42,439 64,463 5,252 5,686 5,679 5,348 5,585 5,527 6,517 20 Net purchases, or sales (-) 12,897 44,149 46,727 6,792 3,278 3,259 4,072 4,575 4,185 3,222 21 Foreign countries 12,600 44,244 45,806 6,696 2,798 3,197 4,077 4,871 4,457 2,903 77 Europe 11,697 40,047 36,202 6,221 2,763 2,395 2,484 3,386 3,475 2,102 73 France 207 210 356 83 -6 6 20 -29 0 328 74 Germany 1,724 2,001 -232 205 -3 -91 -81 26 82 -108 75 Netherlands 100 222 336 89 -37 -39 98 51 -55 113 76 Switzerland 643 3,987 4,640 456 490 180 564 30 265 198 77 United Kingdom 8,429 32,762 31,095 5,631 2,214 2,213 1,917 3,414 3,177 1,416 78 Canada -62 190 396 54 55 85 110 2 88 154 79 Latin America and Caribbean 376 498 1,367 142 63 250 160 64 101 67 30 Middle East1 -1,230 -2,631 -2,693 -186 -632 -718 -40 -169 -33 -355 31 Other Asia 1,817 6,091 10,410 464 480 1,177 1,329 1,586 819 949 37 Africa 1 11 13 -2 3 -3 5 6 -3 3 33 Other countries 0 38 111 3 66 11 29 -4 11 -15 34 Nonmonetary international and regional organizations 297 -95 921 96 480 61 -4 --229966 -273 331199 Foreign securities 35 Stocks, net purchases, or sales (-) -1,101 -3,894 -1,515 -221 -238 404 -83 676 1,262 390 36 Foreign purchases 14,816 20,851 45,268 3,454 3,775 4,310 4,610 5,091 6,319 4,149 37 Foreign sales 15,917 24,746 46,783 3,675 4,013 3,907 4,694 4,415 5,057 3,758 38 Bonds, net purchases, or sales (-) -3,930 -3,996 -2,639 188 1,540 359 1,232 -2,231 2,151 -612 39 Foreign purchases 56,017 81,214 149,520 13,491 15,632 13,559 14,086 15,182 16,239 12,666 40 Foreign sales 59,948 85,210 152,160 13,303 14,091 13,200 12,854 17,412 14,088 13,278 41 Net purchases, or sales (—), of stocks and bonds .... -5,031 -7,891 -4,154 -33 1,302 762 1,149 -1,555 3,413 -222 42 Foreign countries -4,642 -8,954 -4,834 -106 1,122 438 1,090 -1,492 3,083 -225 43 -8,655 -9,887 -16,278 208 -1,332 -683 -714 -3,379 -645 -984 44 542 -1,682 -618 82 16 245 263 111 88 -109 45 Latin America and Caribbean 2,460 1,845 3,327 363 742 278 127 351 499 83 46 1,356 658 9,703 -746 1,639 659 1,337 1,852 3,201 802 47 Africa -108 75 49 3 3 9 1 3 -1 4 48 Other countries -238 38 -1,017 -16 55 -70 75 -430 -58 -21 49 Nonmonetary international and regional organizations -389 1,063 680 73 180 324 59 -63 330 3 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, ties sold abroad by U.S. corporations organized to finance direct investments Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). abroad. 2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • March 1987 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1986 1986 11998844 11998855 Country or area Jan.- May June July Aug. Sept. Oct. Nov.'' Nov. Transactions, net purchases or sales (-) during period1 1 Estimated total2 21,501 29,047 23,745 -2,132 3,112 -254 752 4,993' 3,093 -1,630 2 Foreign countries2 16,496 28,591 26,258 -252 2,230 2,705 2,215 3,997' 2,778 237 3 Europe2 11,014 4,145 16,064 1,436 2,562 2,544 2,442 -685 3,135 -629 4 Belgium-Luxembourg 287 476 267 39 82 -46 180 239 4 -53 5 Germany2 2,929 1,917 8,152 468 357 818 1,050 1,133 2,560 716 6 Netherlands 449 269 1,341 -31 -64 1,756 -64 -313 112 38 7 Sweden 40 976 368 236 16 42 -25 85 -6 -70 8 Switzerland2 656 760 779 365 349 -278 52 -53 449 -457 9 United Kingdom 5,188 -1,954 3,650 698 698 610 1,207 -1,970 153 -288 10 Other Western Europe 1,466 1,701 1,507 -339 1,125 -358 43 195 -136 -515 11 Eastern Europe 0 0 0 0 0 0 0 0 0 0 12 Canada 1,586 -188 577 908 -302 67 105 -198 -230 19 13 Latin America and Caribbean 1,418 4,312 805 -954 -460 28 -37 220 -219 75 14 Venezuela 14 238 -99 36 -170 -72 -294 266 69 -139 15 Other Latin America and Caribbean 536 2,343 1,035 372 -290 96 255 32 -314 6 16 Netherlands Antilles 869 1,731 -131 -1,363 0 5 2 -78 26 208 17 Asia 2,431 19,899 7,794 -1,617 515 -137 -133 4,848' -58 288 18 Japan 6,289 17,920 6,439 -1,148 223 273 683 4,395 -453 623 19 Africa -67 112 -41 -2 -5 6 -1 11 -13 2 20 All other 114 311 1,058 -22 -80 198 -160 -200 163 482 21 Nonmonetary international and regional organizations 5,009 457 -2,513 -1,880 882 -2,959 -1,462 996' 314 -1,868 22 International 4,612 -420 -2,818 -1,889 899 -2,804 -1,511 890 365 -1,964 23 Latin American regional 0 18 157 0 5 0 0 39 -5 0 MEMO 24 Foreign countries2 16,496 28,591 26,258 -252 2,230 2,705 2,215 3,997' 2,778 237 25 Official institutions 505 8,088 13,997 157 1,612 1,448 61 1,877' 3,506 99 26 Other foreign2 15,992 20,503 12,263 -409 619 1,257 2,154 2,119' -727 138 Oil-exporting countries 27 Middle East3 -6,270 -1,581 -1,470 -14 -290 14 -239 -205 -377 -1,005 28 Africa4 -101 7 5 1 0 2 -1 2 -1 1 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities with an original maturity of more than 1 year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria, notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes publicly issued to private foreign residents denominated in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Dec. 31, 1986 Rate on Dec. 31, 1986 Rate on Dec. 31, 1986 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 4.0 Aug. 1985 France1 7.25 Dec. 1986 Norway 8.0 June 1983 Belgium . 8.0 May 1986 Germany, Fed. Rep. of 3.5 Mar. 1986 Switzerland 4.0 Mar. 1983 Brazil... 49.0 Mar. 1981 Italy 12.0 May 1986 United Kingdom2. Canada.. 8.47 Dec. 1986 Japan 3.0 Oct. 1986 Venezuela Oct. 1985 Denmark 7.0 Oct. 1983 Netherlands 4.5 Mar. 1986 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 1986 CCoouunnttrryy,, oorr ttyyppee 11998844 11998855 11998866 June July Aug. Sept. Oct. Nov. Dec. 1 Eurodollars 10.75 8.27 6.70 6.95 6.54 6.06 5.88 5.88 5.96 6.23 2 United Kingdom 9.91 12.16 10.87 9.70 9.91 9.79 10.05 11.08 11.12 11.30 3 Canada 11.29 9.64 9.18 8.72 8.45 8.50 8.38 8.45 8.39 8.34 4 Germany 5.96 5.40 4.58 4.59 4.61 4.56 4.48 4.56 4.67 4.80 5 Switzerland 4.35 4.92 4.19 4.96 4.80 4.30 4.13 3.96 3.88 4.08 6 Netherlands 6.08 6.29 5.56 5.90 5.69 5.28 5.17 5.32 5.48 6.03 7 France 11.66 9.91 7.68 7.23 7.13 7.09 7.07 7.38 7.51 7.92 8 Italy 17.08 14.86 12.60 11.78 11.70 11.18 10.84 10.85 11.05 11.40 9 Belgium 11.41 9.60 8.04 7.27 7.25 7.25 7.25 7.29 7.38 7.39 10 Japan 6.32 6.47 4.96 4.64 4.62 4.68 4.71 4.75 4.39 4.40 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • March 1987 3.28 FOREIGN EXCHANGE RATES Currency units per dollar 1986 CCoouunnttrryy//ccuurrrreennccyy 11998844 11998855 11998866 July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar1 87.937 70.026 67.093 62.91 61.23 62.21 63.83 64.45 65.95 2 Austria/schilling 20.005 20.676 15.260 15.117 14.502 14.349 14.111 14.251 13.996 3 Belgium/franc 57.749 59.336 44.662 44.304 42.701 42.315 41.635 42.069 41.381 4 Brazil/cruzeiro 1841.50 6205.10 13.051 13.84 13.84 13.84 13.98 14.10 14.54 5 Canada/dollar 1.2953 1.3658 1.3896 1.3808 1.3885 1.3872 1.3885 1.3863 1.3801 6 China, P.R./yuan 2.3308 2.9434 3.4615 3.6435 3.7129 3.7150 3.7257 3.7314 3.7314 7 Denmark/krone 10.354 10.598 8.0954 8.0635 7.7657 7.7278 7.5607 7.6444 7.5235 8 Finland/markka 6.0007 6.1971 5.0721 5.0744 4.9377 4.9190 4.8684 4.9576 4.8980 9 France/franc 8.7355 8.9799 6.9256 6.9323 6.7215 6.6835 6.5628 6.6206 6.5296 10 Germany/deutsche mark 2.8454 2.9419 2.1704 2.1517 2.0621 2.0415 2.0054 2.0243 1.9880 11 Greece/drachma 112.73 138.40 139.93 138.40 134.68 135.07 135.44 139.12 140.13 12 Hong Kong/dollar 7.8188 7.7911 7.8037 7.8123 7.8003 7.8026 7.7999 7.7974 7.7931 13 India/rupee 11.348 12.332 12.597 12.508 12.567 12.676 12.848 13.076 13.149 14 Ireland/pound1 108.64 106.62 134.14 139.00 134.67 134.53 135.89 134.64 136.78 15 Italy flira 1756.10 1908.90 1491.16 1478.31 1420.33 1410.23 1387.67 1401.08 1379.44 16 Japan/yen 237.45 238.47 168.35 158.61 154.18 154.73 156.47 162.85 162.05 17 Malaysia/rinegit 2.3448 2.4806 2.5830 2.6455 2.6121 2.6174 2.6245 2.6131 2.5966 18 Netherlands/guilder 3.2083 3.3184 2.4484 2.4236 2.3242 2.3050 2.2663 2.2870 2.2470 19 New Zealand/dollar* 57.837 49.752 52.456 53.176 50.068 47.950 50.392 51.382 51.339 20 Norway/krone 8.1596 8.5933 7.3984 7.4800 7.3534 7.3429 7.3611 7.5401 7.5294 21 Portugal/escudo 147.70 172.07 149.80 148.67 146.17 146.83 147.24 149.54 148.61 22 Singapore/dollar 2.1325 2.2008 2.1782 2.1861 2.1601 2.1680 2.1777 2.1922 2.1900 23 South Africa/rand1 69.534 45.57 43.952 39.04 38.39 43.36 44.42 44.37 44.94 24 South Korea/won 807.91 861.89 884.61 888.59 886.45 883.06 879.22 873.54 868.43 25 Spain/peseta 160.78 169.98 140.04 137.58 134.11 134.10 133.43 136.10 134.49 26 Sri Lanka/rupee 25.428 27.187 27.933 28.065 28.187 28.297 28.407 28.471 28.532 27 Sweden/krona 8.2706 8.6031 7.1272 7.0715 6.9365 6.9191 6.8901 6.9683 6.9081 28 Switzerland/franc 2.3500 2.4551 1.7979 1.7445 1.6616 1.6537 1.6433 1.6858 1.6647 29 Taiwan/dollar 39.633 39.889 37.837 38.119 37.422 36.885 36.647 36.438 36.001 30 Thailand/baht 23.582 27.193 26.314 26.204 26.093 26.120 26.129 26.278 26.239 31 United Kingdom/pound1 133.66 129.74 146.77 150.71 148.61 146.98 142.64 142.38 143.93 MEMO 32 United States/dollar2 138.19 143.01 112.22 110.38 107.50 107.15 106.58 107.90 106.54 1. Value in U.S. cents. 3. Currency reform. 2. Index of weighted-average exchange value of U.S. dollar against currencies NOTE. Averages of certified noon buying rates in New York for cable transfers. of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76 Data in this table also appear in the Board's G.5 (405) release. For address, see global trade of each of the 10 countries. Series revised as of August 1978. For inside front cover. description and back data, see "Index of the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on p. 700 of the August 1978 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when IPCs Individuals, partnerships, and corporations about half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 SMSAs Standard metropolitan statistical areas when the smallest unit given is millions) Cell not applicable General Information Minus signs are used to indicate (1) a decrease, (2) a negative obligations of the Treasury. "State and local government" figure, or (3) an outflow. also includes municipalities, special districts, and other politi- "U.S. government securities" may include guaranteed cal subdivisions. issues of U.S. government agencies (the flow of funds figures In some of the tables details do not add to totals because of also include not fully guaranteed issues) as well as direct rounding. STATISTICAL RELEASES List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases December 1986 A87 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Assets and liabilities of commercial banks, March 31, 1983 August 1983 A70 Assets and liabilities of commercial banks, June 30, 1983 December 1983 A68 Assets and liabilities of commercial banks, September 30, 1983 March 1984 A68 Assets and liabilities of commercial banks, December 31, 1985 January 1987 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1985 September 1986 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1986 November 1986 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1986 December 1986 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1986 March 1987 A70 Terms of lending at commercial banks, February 1986 May 1986 A70 Terms of lending at commercial banks, May 1986 July 1986 A70 Terms of lending at commercial banks, August 1986 December 1986 A70 Terms of lending at commercial banks, November 1986 February 1987 A70 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • March 1987 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19861 Millions of dollars All states2 New York California Illinois Item inc T I l B o u F t d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T IB l o u F t d a s i l n g o IB nl F y s 3 1 Total assets4 365,106 184,308 271,367 146,494 57,169 24,753 19,668 8,247 ? Claims on nonrelated parties 336,737 159,871 253,164 126,589 50,480 22,264 19,484 8,193 3 Cash and balances due from depository institutions 90,145 73,726 74,935 60,709 8,558 7,930 5,487 4,500 4 Cash items in process of collection and unposted debits 423 0 395 0 5 0 4 00 5 Currency and coin (U.S. and foreign) 21 n.a. 15 n.a. 2 n.a. 2 n.a. 6 Balances with depository institutions in United States 48,893 35,604 39,637 28,249 5,492 4,929 3,006 2,120 7 U.S. branches and agencies of other foreign banks (including IBFs) 41,218 33,304 32,771 26,107 5,207 4,819 2,675 22,,008822 8 Other depository institutions in United States (including IBFs) 7,675 2,300 6,866 2,142 228855 110 331 3388 9 Balances with banks in foreign countries and with foreign central banks 38,978 38,123 33,186 32,460 3,028 3,001 2,430 22,,338800 10 Foreign branches of U.S. banks 2,205 2,108 1,820 1,753 115 114 231 206 11 Other banks in foreign countries and foreign central banks 36,774 36,015 31,366 30,707 2,913 2,887 2,199 22,,117744 12 Balances with Federal Reserve Banks 1,830 n.a. 1,703 n.a. 31 n.a. 45 n.a. 13 Total securities and loans 199,985 81,576 142,116 62,133 33,633 13,848 12,760 3,460 14 Total securities, book value 25,971 8,243 21,461 6,255 3,189 1,752 716 182 15 U.S. Treasury 5,761 n.a. 5,472 n.a. 110 n.a. 109 n.a. 16 Obligations of U.S. government agencies and corporations 22,,222299 n.a. 22,,119999 n.a. 2255 n.a. 33 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 17,981 8,243 13,789 6,255 33,,005533 1,752 660044 118822 18 Federal funds sold and securities purchased under agreements to resell 13,266 1,675 11,941 1,561 599 13 473 4433 19 U.S branches and agencies of other foreign banks .... 7,797 828 6,907 758 439 13 271 0 70 Commercial banks in United States 3,046 41 2,752 41 69 0 159 0 21 Other 2,423 806 2,282 763 91 0 43 43 77 Total loans, gross 174,179 73,367 120,754 55,897 30,503 12,111 12,048 3,278 7.3 Less: Unearned income on loans 165 34 99 19 59 15 4 0 24 Equals: Loans, net 174,014 73,333 120,656 55,878 30,444 12,096 12,044 3,278 Total loans, gross, by category 75 Real estate loans 6,993 67 3,442 41 11,,553388 2255 557766 00 76 Loans to depository institutions 57,268 37,789 42,130 25,950 10,519 8,308 3,347 2,595 77 Commercial banks in United States (including IBFs) . 32,679 15,316 23,373 8,893 6,985 4,945 2,095 1,448 28 U.S. branches and agencies of other foreign banks . 29,362 14,112 20,571 7,887 6,597 4,774 2,049 1,421 29 Other commercial banks in United States 3.317 1,204 2,803 1,006 388 172 46 26 30 Other depository institutions in United States (including IBFs) 48 0 25 0 55 0 1155 00 31 Banks in foreign countries 24,541 22,473 18,731 17,056 3,529 3,363 1,237 1,147 3? Foreign branches of U.S. banks 702 691 592 581 97 97 14 14 33 Other banks in foreign countries 23,839 21,782 18,140 16,476 3,432 3,266 1,223 1,134 34 Other financial institutions 3,901 626 2,514 570 547 41 800 3 35 Commercial and industrial loans 83,114 20,333 53,594 17,466 15,650 2,101 6,806 327 36 U.S. addressees (domicile) 58,427 316 33,104 248 12,974 10 6,370 0 37 Non-U .S. addressees (domicile) 24,687 20,017 20,490 17,218 2,676 2,092 437 327 38 Acceptances of other banks 1,113 20 843 13 217 0 22 7 39 U.S. banks 718 0 485 0 208 0 0 0 40 Foreign banks 395 20 358 13 9 0 22 7 41 Loans to foreign governments and official institutions (including foreign central banks) 16,144 14,325 13,195 1111,,772299 11,,663311 1,582 441111 334477 42 Loans for purchasing or carrying securities (secured and unsecured) 3,827 23 3,511 2233 228899 00 2255 00 43 All other loans 1,819 183 1,526 106 111 53 61 0 44 All other assets 33,342 2,895 24,172 2,187 7,690 473 763 190 45 Customers' liability on acceptances outstanding 22,996 n.a. 16,023 n.a. 6,491 n.a. 269 n.a. 46 U.S. addressees (domicile) 15,278 n.a. 9,412 n.a. 5,504 n.a. 266 n.a. 47 Non-U.S. addressees (domicile) 7,717 n.a. 6,611 n.a. 987 n.a. 3 n.a. 48 Other assets including other claims on nonrelated parties 10,346 2,895 8,149 2,187 1,199 473 494 190 49 Net due from related depository institutions5 28,368 24,436 18,203 19,905 6,689 2,489 184 53 50 Net due from head office and other related depository institutions5 28,368 n.a. 18,203 n.a. 6,689 n.a. 184 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 24,436 n.a. 1199,,990055 n.a. 2,489 n.a. 5533 52 Total liabilities4 365,106 183,308 271,367 146,494 59,169 24,753 19,668 8,247 53 Liabilities to nonrelated parties 313,924 151,981 239,961 121,415 51,384 21,099 1 12,396 5,225 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A71 4.30 Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c IB l o u t F d a s i l ng o IB nl F y s 3 ex T I c B l o u t F d a s i l ng o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 54 Total deposits and credit balances 50,137 121,077 41,804 108,102 1,655 7,173 2,884 2,001 55 Individuals, partnerships, and corporations 38,679 14,897 31,185 11,823 1,475 344 2,376 101 56 U.S. addressees (domicile) 30,991 704 26,006 703 475 0 2,281 0 57 Non-U.S. addressees (domicile) 7,688 14,194 5,179 11,120 1,000 344 96 101 58 Commercial banks in United States (including IBFs) . 8,265 42,142 7,677 36,518 64 3,948 487 1,143 59 U.S. branches and agencies of other foreign banks . 4,169 35,156 3,715 30,058 25 3,658 415 999 60 Other commercial banks in United States 4,097 6,985 3,961 6,460 39 290 72 144 61 Banks in foreign countries 1,668 59,450 1,585 55,323 14 2,840 3 742 62 Foreign branches of U.S. banks 166 7,264 166 6,251 0 792 0 107 63 Other banks in foreign countries 1,502 52,185 1,419 49,072 14 2,048 3 635 64 Foreign governments and official institutions (including foreign central banks) 736 4,576 656 4,436 75 41 1 15 65 All other deposits and credit balances 309 12 282 2 5 0 1 0 66 Certified and official checks 478 n.a. 420 n.a. 22 n.a. 15 n.a. 67 Transaction accounts and credit balances (excluding IBFs) 5,550 n.a. 4,738 n.a. 172 n.a. 213 n.a. 68 Individuals, partnerships, and corporations 3,308 n.a. 2,656 n.a. 139 n.a. 193 n.a. 69 U.S. addressees (domicile) 2,283 n.a. 1,888 n.a. 92 n.a. 190 n.a. 70 Non-U.S. addressees (domicile) 1,025 n.a. 768 n.a. 47 n.a. 3 n.a. 71 Commercial banks in United States (including IBFs) . 427 n.a. 406 n.a. 4 n.a. 0 n.a. 72 U.S. branches and agencies of other foreign banks . 132 n.a. 129 n.a. 0 n.a. 0 n.a. 73 Other commercial banks in United States 295 n.a. 277 n.a. 4 n.a. 0 n.a. 74 Banks in foreign countries 972 n.a. 914 n.a. 4 n.a. 2 n.a. 75 Foreign branches of U.S. banks 16 n.a. 16 n.a. 0 n.a. 0 n.a. 76 Other banks in foreign countries 956 n.a. 898 n.a. 4 n.a. 2 n.a. 77 Foreign governments and official institutions (including foreign central banks) 229900 n.a. 228844 n.a. 2 n.a. 1 n.a. 78 All other deposits and credit balances 74 n.a. 57 n.a. 1 n.a. 1 n.a. 79 Certified and official checks 478 n.a. 420 n.a. 22 n.a. 15 n.a. 80 Demand deposits (included in transaction accounts and credit balances) 4,268 n.a. 3,616 n.a. 90 n.a. 220044 n.a. 81 Individuals, partnerships, and corporations 2,664 n.a. 2,156 n.a. 59 n.a. 184 n.a. 82 U.S. addressees (domicile) 1,779 n.a. 1,483 n.a. 30 n.a. 181 n.a. 83 Non-U.S. addressees (domicile) 886 n.a. 672 n.a. 28 n.a. 3 n.a. 84 Commercial banks in United States (including IBFs) . 89 n.a. 68 n.a. 4 n.a. 0 n.a. 85 U.S. branches and agencies of other foreign banks . 9 n.a. 6 n.a. 0 n.a. 0 n.a. 86 Other commercial banks in United States 80 n.a. 63 n.a. 4 n.a. 0 n.a. 87 Banks in foreign countries 802 n.a. 746 n.a. 4 n.a. 2 n.a. 88 Foreign branches of U.S. banks 6 n.a. 6 n.a. 0 n.a. 0 n.a. 89 Other banks in foreign countries 796 n.a. 740 n.a. 4 n.a. 2 n.a. 90 Foreign governments and official institutions (including foreign central banks) 220044 n.a. 119988 n.a. 2 n.a. 1 n.a. 91 All other deposits and credit balances 31 n.a. 29 n.a. 0 n.a. 1 n.a. 92 Certified and official checks 478 n.a. 420 n.a. 22 n.a. 15 n.a. 93 Non-transaction accounts (including MMDAs, excluding IBFs) 44,587 n.a. 37,066 n.a. 1,483 n.a. 2,671 n.a. 94 Individuals, partnerships, and corporations 35,371 n.a. 28,529 n.a. 1,336 n.a. 2,183 n.a. 95 U.S. addressees (domicile) 28,708 n.a. 28,118 n.a. 383 n.a. 2,091 n.a. 96 Non-U.S. addressees (domicile) 6,663 n.a. 4,411 n.a. 953 n.a. 93 n.a. 97 Commercial banks in United States (including IBFs) . 7,838 n.a. 7,270 n.a. 60 n.a. 486 n.a. 98 U.S. branches and agencies of other foreign banks . 4,037 n.a. 3,586 n.a. 25 n.a. 415 n.a. 99 Other commercial banks in United States 3,802 n.a. 3,684 n.a. 35 n.a. 71 n.a. 100 Banks in foreign countries 696 n.a. 671 n.a. 10 n.a. 1 n.a. 101 Foreign branches of U.S. banks 150 n.a. 150 n.a. 0 n.a. 0 n.a. 102 Other banks in foreign countries 546 n.a. 521 n.a. 10 n.a. 1 n.a. 103 Foreign governments and official institutions (including foreign central banks) 444466 n.a. 337722 n.a. 7744 n.a. 00 n.a. 104 All other deposits and credit balances 235 n.a. 225 n.a. 4 n.a. 0 n.a. 105 IBF deposit liabilities n.a. 121,077 n.a. 108,102 n.a. 7,173 n.a. 2,001 106 Individuals, partnerships, and corporations n.a. 14,897 n.a. 11,823 n.a. 344 n.a. 101 107 U.S. addressees (domicile) n.a. 704 n.a. 703 n.a. 0 n.a. 0 108 Non-U.S. addressees (domicile) n.a. 14,194 n.a. 11,120 n.a. 344 n.a. 101 109 Commercial banks in United States (including IBFs) . n.a. 42,142 n.a. 36,518 n.a. 3,948 n.a. 1,143 110 U.S. branches and agencies of other foreign banks . n.a. 35,156 n.a. 30,058 n.a. 3,658 n.a. 999 111 Other commercial banks in United States n.a. 6,985 n.a. 6,460 n.a. 290 n.a. 144 112 Banks in foreign countries n.a. 59,450 n.a. 55,323 n.a. 2,840 n.a. 742 113 Foreign branches of U.S. banks n.a. 7,264 n.a. 6,251 n.a. 792 n.a. 107 114 Other banks in foreign countries n.a. 52,185 n.a. 49,072 n.a. 2,048 n.a. 635 115 Foreign governments and official institutions (including foreign central banks) n.a. 44,,557766 n.a. 44,,443366 n.a. 41 n.a. 1155 116 All other deposits and credit balances n.a. 12 n.a. 2 n.a. 0 n.a. 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • March 1987 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1986'—Continued Millions of dollars All states2 New York California Illinois IItteemm inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 117 Federal funds purchased and securities sold under agreements to repurchase 39,408 1,360 29,620 846 7,412 404 1,813 86 IIS U.S. branches and agencies of other foreign banks ... 9,617 585 6,267 247 2,686 274 527 42 119 Other commercial banks in United States 16,561 128 11,233 95 3,973 30 1,011 0 170 Other 13,231 648 12,120 504 753 100 275 44 171 Other borrowed money 69,631 27,012 35,785 10,507 27,382 13,161 5,077 2,965 172 Owed to nonrelated commercial banks in United States (including IBFs) 49.972 11,779 25,893 3,743 20,403 7,289 2,470 508 173 Owed to U.S. offices of nonrelated U.S. banks 23,145 2,163 13,249 917 8,181 1,053 993 65 124 Owed to U.S. branches and agencies of nonrelated foreign banks 26,827 9,616 12,644 2,826 12,222 6,236 1,477 443 125 Owed to nonrelated banks in foreign countries 14.297 13,988 5,863 5,619 5,786 5,783 2,480 2,445 176 Owed to foreign branches of nonrelated U.S. banks .. 2,172 2,137 599 565 1,076 1,076 427 425 177 Owed to foreign offices of nonrelated foreign banks... 12,125 11,851 5,264 5,054 4,709 4,707 2,053 2,020 128 Owed to others 5,361 1,246 4,029 1,145 1,193 89 127 12 129 All other liabilities 33,672 2,532 24,650 1,960 7,762 361 621 173 130 Branch or agency liability on acceptances executed and outstanding 26,181 n.a. 18,761 n.a. 66,,889977 n.a. 273 n.a. 131 Other liabilities to nonrelated parties 7.490 2,532 5,888 1,960 865 361 348 173 132 Net due to related depository institutions5 51,181 32,327 31,406 25,079 5,785 3,654 7,272 3,021 133 Net due to head office and other related depository institutions5 51,181 n.a. 31,406 n.a. 5,785 n.a. 7,272 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 32,327 n.a. 25,079 n.a. 3,654 n.a. 3,021 MEMO 135 Non-interest bearing balances with commercial banks 0 in United States 2,026 93 1,812 93 98 n.a. 44 0 136 Holding of commercial paper included in total loans 965 n.a. 506 n.a. 376 79 n.a. 137 Holding of own acceptances included in commercial n.a. and industrial loans 3,839 n.a. 2,475 n.a. 1,104 110 n.a. 138 Commercial and industrial loans with remaining maturity n.a. of one year or less 53,271 n.a. 32,675 n.a. 10,466 n.a. 5,123 n.a. 139 Predetermined interest rates 33,790 n.a. 18,768 n.a. 8,000 n.a. 3,802 n.a. 140 Floating interest rates 19,481 n.a. 13,907 n.a. 2,466 1,321 n.a. 141 Commercial and industrial loans with remaining maturity n.a. of more than one year 29,843 n.a. 20,920 n.a. 5,184 n.a. 1,683 n.a. 142 Predetermined interest rates 9,751 n.a. 6,143 n.a. 2,132 n.a. 791 n.a. 143 Floating interest rates 20,092 n.a. 14,776 n.a. 3,052 892 n.a. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A73 4.30 Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u F t d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 55,931 n.a. 47,488 n.a. 1,483 n.a. 3,458 n.a. 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 35,416 n.a. 29,359 n.a. 1,087 n.a. 2,311 n.a. 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 6,252 n.a. 5,881 n.a. 183 n.a. 149 n.a. wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhheeeemmmm 11112222 mmmmoooonnnntttthhhhssss 14,263 n.a. 12,248 n.a. 213 n.a. 997 n.a. All states2 New York California Illinois inc T IB l o u F t d a s i l n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g o IB nl F y s 3 in T c IB l o u t F d a s i l n g o IB nl F y s 3 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 2255,,999977 8,246 2211,,779988 6,355 22,,990000 1,663 771188 175 111155550000 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 4466,,005533 n.a. 2255,,220000 n.a. 1188,,008833 n.a. 11,,886611 n.a. 448822 222222 111199 4466 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data are reported for that item, either because the item is not an "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign eligible IBF asset or liability or because that level of detail is not reported for Banks." Details may not add to totals because of rounding. This form was first IBFs. From December 1981 through September 1985, IBF data were included in used for reporting data as of June 30, 1980, and was revised as of December 31, all applicable items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FR 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G. 11, last issued on footnote 5). On the former monthly branch and agency report, available through July 10, 1980. Data in this table and in the G.ll tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefore, total asset and total liability figures in this table are not items. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman MARTHA R. SEGER MANUEL H. JOHNSON, Vice Chairman WAYNE D. ANGELL 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 DONALD L. KOHN, Deputy Staff Director STEVEN M. ROBERTS, Assistant to the Chairman NORMAND R.V. BERNARD, Special Assistant to the Board BOB S. MOORE, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director MICHAEL BRADFIELD, General Counsel EDWARD C. ETTIN, Deputy Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel MICHAEL J. PRELL, Deputy Director RICHARD M. ASHTON, Associate General Counsel JARED J. ENZLER, Associate Director OLIVER IRELAND, Associate General Counsel DAVID E. LINDSEY, Associate Director RICKI R. TIGERT, Assistant General Counsel ELEANOR J. STOCKWELL, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel MARTHA BETHEA, Deputy Associate Director THOMAS D. SIMPSON, Deputy Associate Director LAWRENCE SLIFMAN, Deputy Associate Director OFFICE OF THE SECRETARY PETER A. TINSLEY, Deputy Associate Director SUSAN J. LEPPER, Assistant Director WILLIAM W. WILES, Secretary RICHARD D. PORTER, Assistant Director BARBARA R. LOWREY, Associate Secretary MARTHA S. SCANLON, Assistant Director JAMES MCAFEE, Associate Secretary JOYCE K. ZICKLER, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) DIVISION OF CONSUMER AND COMMUNITY AFFAIRS DIVISION OF INTERNATIONAL FINANCE GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director EDWIN M. TRUMAN, Director ELLEN MALAND, Assistant Director LARRY J. PROMISEL, Senior Associate Director DOLORES S. SMITH, Assistant Director CHARLES J. SIEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser DIVISION OF BANKING DONALD B. ADAMS, Assistant Director SUPERVISION AND REGULATION PETER HOOPER III, Assistant Director KAREN H. JOHNSON, Assistant Director WILLIAM TAYLOR, Director RALPH W. SMITH, JR., Assistant Director FRANKLIN D. DREYER, Deputy 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 JOE M. CLEAVER, 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 Chicago. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 and Official Staff H. ROBERT HELLER 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 CHARLES W. BENNETT, Assistant Director CHARLES W. WOOD, Assistant Director ANNE M. DEBEER, Assistant Director JACK DENNIS, JR., Assistant Director EARL G. HAMILTON, Assistant Director OFFICE OF THE CONTROLLER JOHN H. PARRISH, Assistant Director FLORENCE M. YOUNG, Adviser GEORGE E. LIVINGSTON, Controller BRENT L. BOWEN, Assistant Controller DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director OFFICE OF THE EXECUTIVE DIRECTOR FOR INFORMATION RESOURCES MANAGEMENT ALLEN E. BEUTEL, Executive Director STEPHEN R. MALPHRUS, Associate Director DIVISION OF HARDWARE AND SOFTWARE SYSTEMS BRUCE M. BEARDSLEY, Director THOMAS C. JUDD, Assistant Director ELIZABETH B. RIGGS, Assistant Director ROBERT J. ZEMEL, Assistant Director DIVISION OF APPLICATIONS DEVELOPMENT AND STATISTICAL SERVICES WILLIAM R. JONES, Director DAY W. RADEBAUGH, Assistant Director RICHARD C. STEVENS, Assistant Director PATRICIA A. WELCH, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Bulletin • March 1987 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL H. ROBERT HELLER MARTHA R. SEGER EDWARD G. BOEHNE MANUEL H. JOHNSON GARY H. STERN ROBERT H. BOYKIN SILAS KEEHN NORMAND R.V. BERNARD, Assistant Secretary RICHARD G. DAVIS, Associate Economist MICHAEL BRADFIELD, General Counsel THOMAS E. DAVIS, Associate Economist JAMES H. OLTMAN, Deputy General Counsel DONALD L. KOHN, Associate Economist JAMES L. KICHLINE, Economist DAVID E. LINDSEY, Associate Economist EDWIN M. TRUMAN, Economist (International) ALICIA H. MUNNELL, Associate Economist ANATOL B. BALBACH, Associate Economist MICHAEL J. PRELL, Associate Economist JOHN M. DAVIS, 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 JOHN P. LA WARE, First District CHARLES T. FISHER III, Seventh District JOHN F. MCGILLICUDDY, Second District DONALD N. BRANDIN, Eighth District SAMUEL A. MCCULLOUGH, Third District DEWALT H. ANKENY, JR., Ninth District JULIEN L. MCCALL, Fourth District F. PHILLIPS GILTNER, Tenth District JOHN G. MEDLIN, JR., Fifth District GERALD W. FRONTERHOUSE, Eleventh District BENNETT A. BROWN, Sixth District JOHN D. MANGELS, 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

A77 and Advisory Councils CONSUMER ADVISORY COUNCIL EDWARD N. LANGE, Seattle, Washington, Chairman STEVEN W. HAMM, Columbia, South Carolina, Vice Chairman EDWIN B. BROOKS, JR., Richmond, Virginia JOHN M. KOLESAR, Cleveland, Ohio JONATHAN A. BROWN, Washington, D.C. ALAN B. LERNER, Dallas, Texas JUDITH N. BROWN, Edina, Minnesota FRED S. MCCHESNEY, Chicago, Illinois MICHAEL S. CASSIDY, New York, New York RICHARD L. D. MORSE, Manhattan, Kansas THERESA FAITH CUMMINGS, Springfield, Illinois HELEN E. NELSON, Mill Valley,California RICHARD B. DOBY, Denver, Colorado SANDRA R. PARKER, Richmond, Virginia RICHARD H. FINK, Washington, D.C. JOSEPH L. PERKOWSKI, Centerville, Minnesota NEIL J. FOGARTY, Jersey City, New Jersey BRENDA L. SCHNEIDER, Detroit, Michigan STEPHEN GARDNER, Dallas, Texas JANE SHULL, Philadelphia, Pennsylvania KENNETH A. HALL, Jackson, Mississippi TED L. SPURLOCK, Dallas, Texas ELENA G. HANGGI, Little Rock, Arkansas MEL R. STILLER, Boston, Massachusetts ROBERT J. HOBBS, Boston, Massachusetts CHRISTOPHER J. SUMNER, Salt Lake City, Utah RAMON E. JOHNSON, Salt Lake City, Utah EDWARD J. WILLIAMS, Chicago, Illinois ROBERT W. JOHNSON, West Lafayette, Indiana MICHAEL ZOROYA, St. Louis, Missouri THRIFT INSTITUTIONS ADVISORY COUNCIL MICHAEL R. WISE, r, Colorado, President JAMIE J. JACKSON, , Texas, Vice President GERALD M. CZARNECKI, Mobile, Alabama DONALD F. MCCORMICK, Livingston, New Jersey JOHN C. DICUS, Topeka, Kansas JANET M. PAVLISKA, Arlington, Massachusetts BETTY GREGG, Phoenix, Arizona HERSCHEL ROSENTHAL, Miami, Florida THOMAS A. KINST, Hoffman Estates, Illinois WILLIAM G. SCHUETT, Milwaukee, Wisconsin RAY MARTIN, LOS Angeles, California GARY L. SIRMON, Walla Walla, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; Mail Stop 138, Board of Governors of the Federal Reserve 10 or more to one address, $1.25 each. System, Washington, D.C. 20551. When a charge is indicat- PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. ed, remittance should accompany request and be made $13.50 each. payable to the order of the Board of Governors of the Federal FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- Reserve System. Remittance from foreign residents should ed at least monthly. (Requests must be prepaid.) be drawn on a U.S. bank. Stamps and coupons are not Consumer and Community Affairs Handbook. $75.00 per accepted. year. Monetary Policy and Reserve Requirements Handbook. $75.00 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- Securities Credit Transactions Handbook. $75.00 per year. TIONS. 1984. 120 pp. Federal Reserve Regulatory Service. 3 vols. (Contains all ANNUAL REPORT. three Handbooks plus substantial additional material.) ANNUAL REPORT: BUDGET REVIEW, 1985-86. $200.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or Rates for subscribers outside the United States are as $2.00 each in the United States, its possessions, Canada, follows and include additional air mail costs: and Mexico; 10 or more of same issue to one address, Federal Reserve Regulatory Service, $250.00 per year. $18.00 per year or $1.75 each. Elsewhere, $24.00 per Each Handbook, $90.00 per year. year or $2.50 each. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. of Part I only) 1976. 682 pp. $5.00. WELCOME TO THE FEDERAL RESERVE. BANKING AND MONETARY STATISTICS. 1941-1970. 1976. PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- 1,168 pp. $15.00. SERVE SYSTEM. August 1985. 30 pp. ANNUAL STATISTICAL DIGEST WRITING IN STYLE AT THE FEDERAL RESERVE. August 1984. 1974-78. 1980. 305 pp. $10.00 per copy. 93 pp. $2.50 each. 1981. 1982. 239 pp. $ 6.50 per copy. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 1982. 1983. 266 pp. $ 7.50 per copy. 440 pp. $9.00 each. 1983. 1984. 264 pp. $11.50 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1984. 1985. 254 pp. $12.50 per copy. December 1986 . 264 pp. $10.00 each. 1985. 1986. 231 pp. $15.00 per copy. HISTORICAL CHART BOOK. Issued annually in Sept. $1.25 each in the United States, its possessions, Canada, and Mexico; 10 or more to one address, $1.00 each. Elsewhere, $1.50 each. CONSUMER EDUCATION PAMPHLETS SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- Short pamphlets suitable for classroom use. Multiple copies RIES OF CHARTS. Weekly. $21.00 per year or $.50 each in are available without charge. the United States, its possessions, Canada, and Mexico; 10 or more of same issue to one address, $19.50 per year or $.45 each. Elsewhere, $26.00 per year or $.60 each. Alice in Debitland THE FEDERAL RESERVE ACT, and other statutory provisions Consumer Handbook on Adjustable Rate Mortgages affecting the Federal Reserve System, as amended Consumer Handbook to Credit Protection Laws through April 20, 1983, with Supplements covering Fair Credit Billing amendments through August 1986. 576 pp. $7.00. Federal Reserve Glossary REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- A Guide to Business Credit and the Equal Credit Opportunity ERAL RESERVE SYSTEM. Act ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Guide to Federal Reserve Regulations Regulation Z) Vol. I (Regular Transactions). 1969. 100 How to File A Consumer Credit Complaint pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each If You Borrow To Buy Stock volume $2.25; 10 or more of same volume to one If You Use A Credit Card address, $2.00 each. Series on the Structure of the Federal Reserve System FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY The Board of Governors of the Federal Reserve System UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one The Federal Open Market Committee address, $1.50 each. Federal Reserve Bank Board of Directors THE BANK HOLDING COMPANY MOVEMENT TO 1978: A Federal Reserve Banks COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to Organization and Advisory Committees one address, $2.25 each. What Truth in Lending Means to You Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 PAMPHLETS FOR FINANCIAL INSTITUTIONS REVIEW OF THE TECHNIQUES AND LITERATURE, by Short pamphlets on regulatory compliance, primarily suit- Kenneth Rogoff. October 1983. 15 pp. able for banks, bank holding companies and creditors. 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- VENTION, AND INTEREST RATES: AN EMPIRICAL IN- VESTIGATION, by Bonnie E. Loopesko. November Limit of 50 copies 1983. Out of print. 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET INTERVENTION: A REVIEW OF THE LITERATURE, by The Board of Directors' Opportunities in Community Rein- Ralph W. Tryon. October 1983. 14 pp. Out of print. vestment 135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET The Board of Directors' Role in Consumer Law Compliance INTERVENTION: APPLICATIONS TO CANADA, GERMA- Combined Construction/Permanent Loan Disclosure and NY, AND JAPAN, by Deborah J. Danker, Richard A. Regulation Z Haas, Dale W. Henderson, Steven A. Symansky, and Community Development Corporations and the Federal Re- Ralph W. Tryon. April 1985. 27 pp. Out of print. serve 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO- Construction Loan Disclosures and Regulation Z MY, by Darrell Cohen and Peter B. Clark. January Finance Charges Under Regulation Z 1984. 16 pp. Out of print. How to Determine the Credit Needs of Your Community 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF Regulation Z: The Right of Rescission FINANCIAL DEREGULATION, INTERSTATE BANKING, The Right to Financial Privacy Act AND FINANCIAL SUPERMARKETS, by Stephen A. Signature Rules in Community Property States: Regulation B Rhoades. February 1984. Out of print. Signature Rules: Regulation B 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- Timing Requirements for Adverse Action Notices: Regula- LINES, AND THE LIMITS OF CONCENTRATION IN LOtion B CAL BANKING MARKETS, by James Burke. June 1984. What An Adverse Action Notice Must Contain: Regulation B 14 pp. Out of print. Understanding Prepaid Finance Charges: Regulation Z 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN THE UNITED STATES, by Thomas D. Simpson and Patrick M. Parkinson. August 1984. 20 pp. 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF STAFF STUDIES-. Summaries Only Printed in the THE LITERATURE, by John D. Wolken. November Bulletin 1984. 38 pp. Out of print. Studies and papers on economic and financial subjects that 141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAYare of general interest. Requests to obtain single copies of MENT COSTS, by William Dudley. November 1984. the full text or to be added to the mailing list for the series 15 pp. Out of print. may be sent to Publications Services. 142. MERGERS AND ACQUISITIONS BY COMMERCIAL BANKS, 1960-83, by Stephen A. Rhoades. December 1984. 30 pp. Out of print. Staff Studies 115-125 are out of print. 143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF THE ELECTRONIC FUND TRANSFER ACT: RECENT SURVEY EVIDENCE, by Frederick J. Schroeder. April 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- 1985. 23 pp. Out of print. DENCE ON COMPETITION AND PERFORMANCE IN 144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON- BANKING MARKETS, by Timothy J. Curry and John T. SUMER CREDIT REGULATIONS: THE TRUTH IN LEND- Rose. Jan. 1982. 9 pp. ING AND EQUAL CREDIT OPPORTUNITY LAWS, by 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- Gregory E. Elliehausen and Robert D. Kurtz. May KET INTERVENTION, by Donald B. Adams and Dale 1985. 10 pp. W. Henderson. August 1983. 5 pp. Out of print. 145. SERVICE CHARGES AS A SOURCE OF BANK INCOME 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- AND THEIR IMPACT ON CONSUMERS, by Glenn B. VENTION: JANUARY-MARCH 1975, by Margaret L. Canner and Robert D. Kurtz. August 1985. 31 pp. Out Greene. August 1984. 16 pp. Out of print. of print. 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, garet L. Greene. October 1984. 40 pp. Out of print. by Thomas F. Brady. November 1985. 25 pp. 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) VENTION: OCTOBER I98O-OCTOBER 1981, by Margaret INDEXES OF THE MONETARY AGGREGATES, by Helen L. Greene. August 1984. 36 pp. T. Farr and Deborah Johnson. December 1985. 42 pp. 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF TERNATIONAL TRADE AND OTHER ECONOMIC VARIA- THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- BLES: A REVIEW OF THE LITERATURE, by Victoria S. TION RESULTS, by Flint Bray ton and Peter B. Clark. Farrell with Dean A. DeRosa and T. Ashby McCown. December 1985. 17 pp. January 1984. Out of print. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- IN BANKING BEFORE AND AFTER ACQUISITION, by DEUTSCHE MARK INTERVENTION, by Laurence R. Stephen A. Rhoades. April 1986. 32 pp. Jacobson. October 1983. 8 pp. 150. STATISTICAL COST ACCOUNTING MODELS IN BANK- 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- ING: A REEXAMINATION AND AN APPLICATION, by TWEEN EXCHANGE RATES AND INTERVENTION: A John T. Rose and John D. Wolken. May 1986. 13 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT Survey of Consumer Finances, 1983: A Second Report. PRICING FROM 1983 THROUGH 1985, by Patrick I. 12/84. Mahoney, Alice P. White, Paul F. O'Brien, and Mary Union Settlements and Aggregate Wage Behavior in the M. McLaughlin. January 1987. 30 pp. 1980s. 12/84. The Thrift Industry in Transition. 3/85. A Revision of the Index of Industrial Production. 7/85. Financial Innovation and Deregulation in Foreign Industrial Countries. 10/85. REPRINTS OF BULLETIN ARTICLES Recent Developments in the Bankers Acceptance Market. 1/86. Most of the articles reprinted do not exceed 12 pages. The Use of Cash and Transaction Accounts by American Families. 2/86. Limit of 10 copies Financial Characteristics of High-Income Families. 3/86. Foreign Experience with Targets for Money Growth. 10/83. U. S. International Transactions in 1985. 5/86. Intervention in Foreign Exchange Markets: A Summary of Prices, Profit Margins, and Exchange Rates. 6/86. Ten Staff Studies. 11/83. Agricultural Banks under Stress. 7/86. A Financial Perspective on Agriculture. 1/84. Foreign Lending by Banks: A Guide to International and Survey of Consumer Finances, 1983. 9/84. U.S. Statistics. 10/86. Bank Lending to Developing Countries. 10/84. Recent Developments in Corporate Finance. 11/86. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Index to Statistical Tables References are to pages A3-A73 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, 70-73 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, 70-73 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, 70 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, 70 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, 70-73 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

A82 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 Commercial banks, 18 INCOME, personal and national, 44, 51, 52 Depository institutions, 3, 4, 5, 12 Industrial production, 44, 47 Federal Reserve Banks, 10 Installment loans, 40, 41 U.S. reserve assets, 54 Insurance companies, 26, 30, 39 Residential mortgage loans, 38 Interest rates Retail credit and retail sales, 40, 41, 44 Bonds, 24 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, 39, 40 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 New security issues, 34 LABOR force, 45 Ownership of securities issued by, 19, 20, 26 Life insurance companies (See Insurance companies) Rates on securities, 24 Loans (See also specific types) Stock market, selected statistics, 25 Banks, by classes, 18-20 Stocks (See also Securities) Commercial banks, 3, 16, 18-20, 70 New issues, 34 Federal Reserve Banks, 4, 5, 6, 10, 11 Prices, 25 Financial institutions, 26, 39 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 MANUFACTURING TAX receipts, federal, 29 Capacity utilization, 46 Thrift institutions, 3 (See also Credit unions, Mutual Production, 46, 48 savings banks, and Savings and loan associations) Margin requirements, 25 Time and savings deposits, 3, 8, 13, 17, 18, 19, 20, 21 Member banks (See also Depository institutions) Trade,foreign, 54 Federal funds and repurchase agreements, 5 Treasury cash, Treasury currency, 4 Reserve requirements, 7 Treasury deposits, 4, 10, 28 Mining production, 48 Treasury operating balance, 28 Mobile homes shipped, 49 UNEMPLOYMENT, 45 Monetary and credit aggregates, 3, 12 U.S. government balances Money and capital market rates, 24 Commercial bank holdings, 18, 19, 20 Money stock measures and components, 3,13 Treasury deposits at Reserve Banks, 4, 10, 28 Mortgages (See Real estate loans) U.S. government securities Mutual funds, 35 Bank holdings, 18-20, 21, 30 Mutual savings banks, 8 (See also Thrift institutions) Dealer transactions, positions, and financing, 32 Federal Reserve Bank holdings, 4, 10, 11, 30 Foreign and international holdings and transactions, 10, NATIONAL defense outlays, 29 30, 66 National income, 51 Open market transactions, 9 Outstanding, by type and holder, 26, 30 OPEN market transactions, 9 Rates, 24 U.S. international transactions, 53-67 Utilities, production, 48 PERSONAL income, 52 Prices Consumer and producer, 44, 50 VETERANS Administration, 38, 39 Stock market, 25 Prime rate, 23 WEEKLY reporting banks, 19-21 Producer prices, 44, 50 Wholesale (producer) prices, 44, 50 Production, 44, 47 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 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 R. Opel E. Gerald Corrigan Virginia A. Dwyer Thomas M. Timlen Buffalo 14240 Mary Ann Lambertsen John T. Keane PHILADELPHIA 19105 Nevius M. Curtis Edward G. Boehne George E. Bartol III Richard L. Smoot CLEVELAND* 44101 (to be announced) Karen N. Horn E. Mandell de Windt William H. Hendricks Cincinnati 45201 Owen B. Butler 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 Gloria L. Johnson Robert D. McTeer, Jr. Charlotte 28230 Wallace J. Jorgenson Albert D. Tinkelenberg Culpeper Communications John G. Stoides and Records Center 22701 ATLANTA 30303 Bradley Currey, Jr. Robert P. Forrestal Larry L. Prince JJaacckk GGuuyynnnn Delmar Harrison Birmingham 35283 Margaret E. M. Tolbert Fred R. Hen- Jacksonville 32231 Andrew A. Robinson James D. Hawkins Miami 33152 Robert D. Apelgren Patrick K. Barron Nashville 37203 C. Warren Neel Jeffrey J. Wells New Orleans 70161 Caroline K. Theus Henry H. Bourgaux CHICAGO* 60690 Robert J. Day Silas Keehn Marcus Alexis DDaanniieell MM.. DDooyyllee Detroit 48231 Robert E. Brewer Roby L. Sloan ST. LOUIS 63166 W.L. Hadley Griffin Thomas C. Melzer Robert L. Virgil, Jr. Joseph P. Garbarini Little Rock 72203 James R. Rodgers John F. Breen Louisville 40232 Raymond M. Burse James E. Conrad Memphis 38101 Katherine H. Smythe Paul I. Black, Jr. MINNEAPOLIS 55480 John B. Davis, Jr. Gary H. Stern Michael W. Wright Thomas E. Gainor Helena 59601 Warren H. Ross Robert F. McNellis KANSAS CITY 64198 Irvine O. Hockaday, Jr. Roger Guflfey Robert G. Lueder Henry R. Czerwinski Denver 80217 James E. Nielson Wayne W. Martin Oklahoma City 73125 Patience S. Latting William G. Evans Omaha 68102 Kenneth L. Morrison Robert D. Hamilton DALLAS 75222 Bobby R. Inman Robert H. Boykin Hugh G. Robinson William H. Wallace James L. Stull El Paso 79999 Mary Carmen Saucedo Sammie C. Clay Houston 77252 Walter M. Mischer, Jr. J. Z. Rowe San Antonio 78295 Robert F. McDermott Thomas H. Robertson SAN FRANCISCO 94120 Fred W. Andrew Robert T. Parry Robert F. Erburu Carl E. Powell Los Angeles 90051 Richard C. Seaver Thomas C. Warren Portland 97208 Paul E. Bragdon Angel o S. Carella Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett Seattle 98124 John W. Ellis Gerald R. Kelly * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories •jmtn* 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 $200 for etary policy, securities credit, and consumer affairs. the Federal Reserve Regulatory Service and $75 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 $250 for the Service and $90 for each Handbook. All contains conversion tables, citation indexes, and a subscription requests must be accompanied by a check subject index. or money order payable to Board of Governors of the The Monetary Policy and Reserve Requirements Federal Reserve System. Orders should be addressed Handbook contains Regulations A, D, and Q plus to Publications Services, Mail Stop 138, Federal Rerelated materials. For convenient reference, it also serve Board, 20th Street and Constitution Avenue, contains the rules of the Depository Institutions N.W., Washington, D.C. 20551. Deregulation Committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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