Federal Reserve Bulletin, 1987-08

VOLUME 73 • NUMBER 8 • AUGUST 1987 V FEDERAL RESERVE BULLETIN 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 633 MONETARY POLICY REPORT TO THE Comments requested on revised proposal to CONGRESS charge assessments and fees for certain supervisory activities. The economy expanded at a somewhat accelerated pace in the first half of 1987, and Changes in Board staff. the civilian unemployment rate declined Admission of two state banks to memberover the period to 6.1 percent in June, the ship in the Federal Reserve System. lowest level in this decade. 659 LEGAL DEVELOPMENTS 647 INDUSTRIAL PRODUCTION Various bank holding company, bank ser- Industrial production increased an estimatvice corporation, and bank merger orders; ed 0.5 percent in May. and pending cases. 649 STATEMENT TO CONGRESS AI FINANCIAL AND BUSINESS STATISTICS Manuel H. Johnson, Vice Chairman, Board A3 Domestic Financial Statistics of Governors, offers testimony on the issue A44 Domestic Nonfinancial Statistics of money laundering, including efforts to A53 International Statistics press for greater international cooperation by bank supervisors in addressing the use of A69 GUIDE TO TABULAR PRESENTATION, banking organizations to launder money, STATISTICAL RELEASES, AND SPECIAL before the Subcommittee on Financial Insti- TABLES tutions Supervision, Regulation and Insurance of the House Committee on Banking, A74 BOARD OF GOVERNORS AND STAFF Finance and Urban Affairs, June 9, 1987. A76 FEDERAL OPEN MARKET COMMITTEE 655 ANNOUNCEMENTS AND STAFF; ADVISORY COUNCILS Statement by Chairman Volcker on the death of Arthur F. Burns. A78 FEDERAL RESERVE BOARD PUBLICATIONS Meeting of Consumer Advisory Council. Nominations sought for appointments to A8i INDEX TO STATISTICAL TABLES Consumer Advisory Council. A83 FEDERAL RESERVE BANKS, BRANCHES, Direct deposit of social security payments AND OFFICES in the United Kingdom. Amendment to Regulation Y. A84 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress Report submitted to the Congress on July 21, the first part of the year, growth in money and 1987, pursuant to the Full Employment and Bal- credit slowed from the rapid pace of 1986, even anced Growth Act of 1978.' though pressures on the reserve positions of depository institutions remained mild. Those pressures were increased somewhat in late April MONETAR Y POLIC Y AND THE ECONOMIC and May, however, as the dollar fell sharply OUTLOOK FOR 1987 AND 1988 against other key currencies, inflation expectations flared up, and long-term interest rates The economy expanded at a somewhat acceler- jumped to higher levels. In response to these ated pace in the first half of 1987, and the civilian steps, and to complementary policy actions unemployment rate declined over the period to taken abroad, the dollar has stabilized, and inter- 6.1 percent in June, the lowest level in this est rates have retreated somewhat from their decade. Moreover, the pattern of activity has May highs. exhibited encouraging signs that a turnaround in If the nation is to achieve an orderly transition the trade sector is under way. An improvement to better external balance, one marked by a in net exports in real terms appears to be provid- minimum of financial or inflationary pressures, ing a lift to activity in the industrial sector, responsible action by many parties—in addition offsetting slower growth of domestic spending to |he Federal Reserve—will be necessary. Furand sustaining a moderate rise in overall domes- ther progress in reducing our federal budget tic production. However, the process of restor- deficit is essential: a failure to achieve this oftening balance to the U.S. external accounts has stated objective could only damage confidence in involved a sizable increase in the prices paid for our ability to deal with our economic problems imported goods. These price increases have oc- and contribute to imbalances in financial markets curred at the same time that a rebound in world and the economy. In addition, satisfactory oil prices has been carrying inflation rates above growth in the other major industrial countries is last year's modest pace. crucial, as are efforts on all sides to maintain Although some of the elements necessary for and improve the openness of the international sustaining economic growth are now beginning to marketplace. The private sector also must fall into place, the economic outlook continues to play a constructive role by remaining sensitive be clouded by a number of imbalances, risks, and to wage and price practices that promote the uncertainties. The experience of the first half international competitiveness of American busiunderscored, in particular, the dangers associ- ness. ated with a loss of market confidence in the dollar and the related potential for a rekindling of Economic and Financial Background inflation expectations. The Federal Reserve, in implementing monetary policy, was sensitive to The economic expansion has now progressed these dangers, while it continued to provide well into its fifth year. Real gross national prodsupport for sustainable economic growth. During uct rose at a 43A percent annual rate in the first quarter. However, much of the increase in production reflected a rebuilding of business inventories that had been drawn down late in 1986, and I. The charts to the report are available on request from real GNP appears to have increased at an appre- Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ciably more moderate pace in the second quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 Federal Reserve Bulletin • August 1987 Nonetheless, growth remained strong enough to depreciation has caused prices of imported goods sustain a downtrend in unemployment. to increase—sharply in some cases—and has Beneath these solid gains in aggregate eco- exacerbated a bulge in prices coming from higher nomic activity have been welcome improve- energy costs. The rise in consumer prices, averments in the fortunes of sectors that have failed aging more than 5 percent at an annual rate over to participate in the increasing prosperity of the the first five months of this year, was a disturbing past several years. As suggested above, the most departure from recent experience. Moreover, as significant development has been the emerging the dollar exhibited continued weakness in the improvement in the nation's trade performance, early spring, and with progress toward improvewhich has begun to close the gap between the ment in the U.S. current account slower than pace of growth in the industrial sector and in the many had anticipated, concerns mounted about rest of the economy; indeed, some segments of inflation prospects. This was reflected for a time manufacturing have reached relatively high lev- in rising prices of precious metals and other els of capacity utilization and strong profitability. actively traded commodities, an event that only Economic strains also appear to be easing in served to reinforce the inflation fears that simulother troubled sectors. Oil-well drilling, while taneously were unsettling U.S. securities marstill at depressed levels, has turned up as a kets. consequence of the firming of world oil prices. In these circumstances, and with the economic Agricultural income was quite high last year, advance evidencing reasonable momentum, the although it continued to be heavily dependent on Federal Reserve in late April and May adjusted government support; farmland values seem to its open market operations to impose a somewhat have stabilized, and the amount of delinquent greater, but still quite limited, degree of pressure farm loans has begun to decline. on the reserve positions of depository institu- While the external sector has been strengthen- tions. This step was reassuring to the markets. ing in real terms in recent quarters, growth in Coupled with complementary actions by monedomestic demand has moderated considerably. tary authorities abroad and more favorable news To some extent, the slower rise in household and on prices and U.S. merchandise trade flows, the business purchases in the early months of this firming of money market conditions contributed year was a reflection of the acceleration that had not only to a turnaround in the dollar on exoccurred at the end of 1986, motivated by tax change markets but also to a rally in bond prices. considerations. However, consumers, in partic- On balance, however, short-term interest rates ular, have shown signs of less exuberance in their currently are about Vi percentage point above expenditure patterns after a period of several their levels at the time of the Board's February years in which their willingness to spend increas- monetary policy report to the Congress, and ing proportions of their income provided consid- long-term rates are up about a full percentage erable thrust to business activity. A moderation point. of domestic spending growth is, of course, a The rate of growth of the money stock meafundamental ingredient in achieving better exter- sures M2 and M3 has been well below that of last nal balance without putting excessive strains on year and close to, or below, the lower end of the available resources. target ranges adopted in February. This has been A key element in the recent trade develop- viewed as acceptable by the Federal Open Marments has been the steep drop in the foreign ket Committee (FOMC), given the inflation and exchange value of the dollar—almost 40 percent exchange rate developments described above, as on a trade-weighted basis against the currencies well as indications of greater-than-anticipated of the other Group of Ten countries—since early strength in the velocity of money (that is, the 1985. That decline, in conjunction with notable ratio of nominal GNP to money). M2 rose at an restraint on labor costs, has greatly enhanced the annual rate of only 4 percent between the fourth competitiveness of U.S. producers in interna- quarter and June, appreciably below the growth tional markets. At the same time, though, the range of 51/2 to 8V2 percent for the year, while M3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 635 grew at a 5lA percent rate, a shade below the ing range of 8 to 11 percent specified by the lower bound of its identical range. Federal Open Market Committee. The marked deceleration of monetary growth, and the accompanying rise in M2 and M3 veloc- Ranges for Money and Credit Growth in ity after two years of decline, reflected a variety 1987 and 1988 of influences. Some unwinding of the buildup in balances that occurred late last year in connec- At its meeting earlier this month, the FOMC did tion with a huge volume of tax-related transac- not change the 1987 ranges for money and credit tions may have been involved; tax reform also growth that it had established in February. As may have damped growth in money as individu- indicated at that time, operating decisions will als reduced their additions to deposit holdings continue to be made not only with due regard to rather than using consumer credit, on which the behavior of these aggregates, but also in light interest is no longer fully tax-deductible. Capital of evidence on emerging trends in economic constraints on the growth of bank and thrift activity and inflation and developments in doinstitution assets may have limited the deposito- mestic and international financial markets. At ries' efforts to seek funds, an effect likely to this juncture, given the actual growth achieved in express itself most fully at the level of M3, which the first half, it seems likely that, absent major encompasses a broad range of depository-insti- movements in interest rates that alter the incentution liabilities. tives to hold monetary assets, expansion in M2 But it is another factor that appeared most and M3 around the lower ends of their 5!/2 to 8V2 important, particularly in the case of M2. percent annual ranges may well be appropriate. Changes in deposit rates have lagged changes in Indeed, should the recent tendency toward a market rates—behavior exhibited quite consis- strengthening in velocity, which has been partictently in the period since most restrictions on ularly noticeable in the case of M2, persist, or if deposit rates were removed. With market rates inflationary pressures appear to be mounting, rising, financial assets other than those included some shortfall from the annual ranges might well in M2 have become relatively more attractive to be appropriate. With regard to the domestic debt the public, the opposite of developments in 1985 aggregate, the FOMC anticipated that the slower and 1986. This same phenomenon, reinforced by pace of debt growth in the first half would the normal downward adjustment of compensat- continue and that the aggregate would end the ing-balance requirements as rising interest rates year well within the monitoring range of 8 to 11 enable banks to earn more on business demand percent. deposits, has had a marked effect on Ml growth Consistent with the objective of maintaining as well, which slowed to a 10 percent annual rate progress over time toward general price stability between the fourth and second quarters (and to a while supporting sustainable growth in economic 73/4 percent rate between the fourth quarter and activity, the FOMC decided to adopt on a tenta- June); Ml velocity appears to have changed little tive basis lower growth ranges for money and in the second quarter, after more than two years credit in 1988. The target growth ranges for M2 of steep decline. and M3 were reduced Vi percentage point, to 5 to Reflecting in large part the diminution of the 8 percent, measured from the fourth quarter of federal deficit and a slowing in state and local 1987 to the fourth quarter of 1988. At the same government borrowing, influenced by the Tax Reform Act, aggregate credit expansion in the Ranges of growth for monetary and credit aggregates economy has slowed noticeably this year. The Percent change, fourth quarter to fourth quarter debt of domestic nonfinancial sectors is esti- 1988, mated to have expanded at an annual rate of Monetary or credit aggregate 1987 tentative about 93/4 percent through June, still high relative M2 51h to m 5 to 8 to the growth of nominal GNP but less rapid than M3 5'/2 to m 5 to 8 in the past several years and within the monitor- Credit 8 to 11 V/i to 10'/2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Federal Reserve Bulletin • August 1987 time, the monitoring range for growth of nonfi- Economic projections for 1987 and 19881 nancial sector debt also was tentatively reduced Percent by 1/2 percentage point, to IV2 to 10'/2 percent. FOMC members and The Committee noted that Ml has continued to other FRB Presidents exhibit considerable sensitivity to changes in GGNNPP oorr uunneemmppllooyymmeenntt Central Range interest rates, among other factors, as illustrated tendency by its sharp deceleration in the first half of this 1987 year. In view of this, and the still-limited expe- GNP, change from fourth quarter to rience with the behavior of deregulated transac- fourth quarter Nominal 53/4 to 71/4 6'/4 to 7 tions accounts, the Committee decided not to set Real 2 to 33/4 2V2 to 3 Implicit deflator 3 to 41/4 3V2 to 4 a specific target range for Ml for the second half of 1987, and no tentative range was adopted for Civilian unemployment rate, average level in the fourth quarter 6.1 to 6.5 6.2 to 6.4 1988. In its policy deliberations over the remain- 1988 der of the year, the FOMC will take account of GNP, change from fourth quarter to Ml growth in light of the behavior of its velocity, fourth quarter Nominal 5 to 8 5% to 7 incoming information about the economy and Real 1 to 3 2Vi to 3 financial markets, and the degree of emerging Implicit deflator 2Vi to 5 33/4 to 4!/4 price pressures. Civilian unemployment rate, average level in the fourth quarter 5.9 to 6.8 6 to 6.5 Economic Projections 1. The administration has yet to publish its midsession budget review but spokesmen have indicated that earlier forecasts will be revised. As a consequence, the customary comparison of FOMC As noted above, the Committee believes that the forecasts and administration economic goals has not been included in this report. monetary objectives that it has set are consistent with restraint on inflation in the context of continued moderate growth in economic activity and cially in equipment, are anticipated as industrial progress toward a sustainable external position. firms respond to more favorable sales trends. As is indicated in the following table, the central Prices, as measured by the implicit deflator for tendency of the forecasts of Committee members GNP, are expected to rise V/i to 4 percent over and other Reserve Bank presidents is for growth the four quarters of 1987—slightly more than the in real GNP of 2Vi to 3 percent in 1987 and 1988. central-tendency range reported to the Congress Between now and the end of next year, this pace in February. For 1988, projections of the inof activity is expected to generate jobs in about crease in the GNP deflator center on 4 percent. sufficient number to match the expansion of the Assuming world oil prices are more stable, there work force. Consequently, the civilian unem- should be no repetition of the rebound in domesployment rate is not expected to change appre- tic energy prices that raised the general rate of ciably from the 6'/4 percent average of the second inflation earlier this year. However, the accelerquarter, although recent experience suggests that ation in prices of non-oil imported goods that is the projected growth of real GNP might lead to occurring in the wake of the decline in the foreign somewhat lower unemployment. exchange value of the dollar likely will continue Real net exports of goods and services are for a time to provide some impetus to inflation, expected to strengthen further while the growth even if the dollar is more stable over the period of domestic demand remains relatively subdued. ahead, as assumed. The size of further increases The improved competitive position of U.S. pro- in import prices resulting from the depreciation ducers resulting in large part from the dollar to date will depend on the aggressiveness with depreciation of the past two years has only begun which foreign exporters and U.S. distributors to be reflected in trade flows, and further im- seek to restore profit margins that have been provement in the nation's external position squeezed in the past two years. The view that should be realized in coming quarters. House- inflation next year will not rise significantly from hold spending is expected to grow slowly, but the pace projected for 1987 is grounded in a belief stronger increases in business investment, espe- that recognition of the potential for losses of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 637 market share and job opportunities will continue of the dollar. Prices of non-oil imports, particuto influence wage- and price-setting behavior. larly for finished consumer goods and capital While restraint on inflation is crucial in achiev- equipment, have been rising at rates in excess of ing an orderly adjustment as our massive exter- domestic prices in recent quarters, damping the nal imbalance is corrected, so too is continued demand for imported goods. At the same time, progress in reducing the federal budget deficit. goods produced in the United States have be- Inflows of foreign capital will shrink in step with come more competitive in world markets. The the reduction in our current account deficit, and volume of exports, which began to pick up in that context excessive federal borrowing re- noticeably in the second half of 1986, continued quirements, as they put pressure on financial to expand in early 1987, although the rebound markets, pose a threat to the ability of our likely has been limited by slow economic growth economy to fund necessary private capital for- abroad. mation. Toward the end of 1986, some manufacturing Finally, the members of the Committee and industries—notably those producing textiles, apother Reserve Bank presidents also view the parel, steel, chemicals, and paper—began to prospects for a healthy U.S., and world, econ- experience a firming in demand apparently assoomy as depending significantly on the avoidance ciated with improved trade conditions. In the of further protectionist measures here and first six months of 1987, production of office abroad and on satisfactory economic growth in equipment and some other high-tech capital other major industrial countries. goods as well as several categories of industrial machinery also picked up. Moreover, domestic energy output stabilized, after having been a THE PERFORMANCE OF THE ECONOMY serious drag on industrial production last year. DURING THE FIRST HALF OF 1987 On the whole, the pace of activity in the goods- The economy continued to expand in the first producing sector moved back into line with the half of 1987, and, in contrast to the pattern of the overall rise in GNP. The index of industrial preceding four years, the composition of activity production increased at a 3 percent annual rate appeared to be moving toward a better balance between the third quarter of 1986 and the second between domestic spending and domestic pro- quarter of 1987, after little change during the duction. The overall growth in output during the preceding year. first six months of the year led to a net gain in jobs of around 1V* million, a faster pace of hiring The External Sector than during 1986. Moreover, the civilian unemployment rate, which had hovered close to 7 The dollar depreciated further against other mapercent throughout most of last year, moved jor currencies in the first half of 1987, with most down to 6.1 percent by June. of the adjustment concentrated in one episode Inflation picked up early this year, with most early in January and in another during a period of broad indexes of prices posting increases sub- unsettled markets in the early spring. Since midstantially above those of the past several years. May, the dollar has retraced part of its recent In large part, the acceleration reflected develop- decline, but, on a trade-weighted basis against ments in oil markets, where prices have retraced other G-10 currencies, it remains about 6 percent part of last year's decline. But rising prices for below its average level in December 1986 and other imported goods also began to surface at the almost 40 percent below its peak in February retail level, and, at the producer level, prices 1985. The underlying downward pressure on the paid for raw materials and other supplies clearly dollar during the first half was fueled by percepturned up. Wage trends, however, have re- tions that progress in reducing the U.S. current mained both stable and restrained. account deficit had been slow and by disappoint- Higher inflation rates have been, in part, a ment concerning prospects for policy adjustconsequence of the ongoing adjustment of the ments, here and abroad, aimed at restoring better U.S. economy to a lower foreign exchange value balance in the world economy. An offsetting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 Federal Reserve Bulletin • August 1987 factor until recently was the widening of interest growth last year was quite uneven and, on balrate differentials between the United States and ance, provided only a limited offset to slower the other major industrial countries, as rates rose economic activity in Europe and Japan. Weakin the United States while declining abroad. ness in oil markets held down OPEC growth The U.S. current account deficit stood at just while the newly industrialized countries in Asia under $150 billion in the first quarter of 1987, continued to expand strongly. In Latin America, little changed, in nominal terms, from the deficit which is an important market for U.S exports, in the second half of 1986. The volume of mer- output rose close to 4 percent for a third year, a chandise imports of goods other than oil has been marked turnaround from the 1982-83 period, about flat in recent quarters, after rising steadily when the onset of external financing difficulties for three and one-half years. Demand has leveled seriously disrupted trade. Internal pressures to off for a wide range of imported industrial mate- maintain reasonably strong growth persist in rials, consumer goods, and capital equipment. these countries; such growth could be facilitated This adjustment occurred, however, as dollar by an improved performance of the industrial prices for these goods began to pick up, and thus economies as a group. the value of non-oil imports has continued to edge higher. Demand for imported petroleum products dropped back early this year, but with The Household Sector world oil prices higher, the U.S. oil import bill stayed at about its 1986 level. Consumer spending weakened considerably in At the same time, the expansion in the volume the first half of 1987, after three years in which of merchandise exports that began in mid-1986 real gains averaged 33/4 percent per year. In extended into early 1987. The improvement in particular, households cut back sharply their foreign sales has been broadly based; in particu- purchases of durable goods and outlays for nonlar, shipments abroad of industrial materials and durables flattened out; spending for services, capital goods, which account for the bulk of U.S. however, continued to trend up. Slower sales of merchandise exports, both were up about 10 new automobiles contributed importantly to the percent in real terms in the first quarter from the overall deceleration in consumer spending. Duraverage in the first half of 1986. The volume of ing the first half, sales of new cars averaged 10 agricultural exports also firmed somewhat re- million units at an annual rate, down from a cently, as sharply reduced support prices appear record 11 Vi million units in 1986. The slackening to be combining with the lower dollar to boost in demand was most noticeable for domestic foreign demand for some U.S. farm products. makes and persisted despite the continuation of The adjustment in the U.S. trade position to special incentive programs on a wide range of date has occurred without much impetus from models. economic expansion abroad. Growth of real The deceleration in consumer outlays, espe- GNP in other industrial countries averaged less cially for durables such as motor vehicles, furnithan 2'/ percent last year; moreover, economic ture, and home appliances, followed a period of 2 activity began to slow in the second half of the several years during which a variety of factors year, and, at least in Europe, the weakness were working to encourage households to incontinued into early 1987. Export and import crease their holdings of big-ticket items: relavolumes in Europe and Japan have begun to tively moderate increases, or even decreases, in adjust to the exchange rate movements of the the prices of many home goods; declines in past two years, cutting into the growth generated interest rates; and pent-up demands from the by their external sectors. While growth in domes- period of economic weakness in the early 1980s. tic demand has been maintained above the rate As those influences dissipated, and with the for domestic production, it, too, has slowed and personal saving rate reaching an historically low has not taken up the slack from a weak external level by late 1986, consumers apparently became sector. more cautious in their buying patterns. Nonetheless, survey evidence still suggested that house- Outside of the industrial countries, average Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 639 holds' evaluations of market conditions for major The Business Sector purchases and of their personal finances remained generally positive. Business spending on plant and equipment fell During the first five months of 1987, growth in sharply in the first quarter of 1987. For equipnominal disposable income picked up from its ment, the weakness was concentrated in January 1986 pace; but, with consumer prices rising more and followed a tax-induced bunching of purrapidly, income growth in real terms was little chases in late 1986. In subsequent months, shipdifferent from the 2 percent pace of the preceding ments of nondefense capital goods recovered, two years. However, the aggregate balance sheet leaving the average level for April and May, in of the household sector showed further improve- nominal terms, 13A percent above the third quarment early this year. Asset holdings were bol- ter of last year. New orders for nondefense stered especially by gains in stock prices, while capital goods also dipped at the beginning of the debt accumulation slowed. Growth of mortgage year, but then strengthened noticeably as bookdebt dropped back from the extraordinary pace ings for aircraft and for office and computing of late 1986 despite the popularity of home equity equipment rose sharply. The recent level of loans, and growth of consumer credit dropped orders appears consistent with a continuation in sharply. To some extent, the deceleration in the near term of the moderate uptrend in spendconsumer debt, as well as the slowdown in ing on equipment that has prevailed over the past spending on durable goods, may be a conse- two years. According to responses to private quence of the rapid rise in household debt bur- surveys concerning business capital spending dens during the past several years. In addition, plans for the year as a whole, firms still intend to the new tax law diminished the incentive to direct the bulk of these purchases toward modfinance expenditures with installment credit. De- ernization and cost-saving improvements in their spite the slower growth of consumer and mort- production lines. gage debt, some indicators suggest that a consid- In contrast, the environment for expansion of erable number of households still are having plant facilities and office space is still generally problems servicing existing liabilities. Although unfavorable. Large amounts of vacant and undersome loan delinquency rates dropped a bit, used space in both office buildings and factories others rose in the first quarter, as did personal began to take a toll of nonresidential construction bankruptcies. last year; and less favorable treatment of com- Spurred by a decline in mortgage interest mercial structures under the new tax code reinrates, which reached a nine-year low at the end forced the tendencies toward a lower level of of March, starts of new single-family homes activity in this sector. As a result, spending for averaged 1 VA million units at an annual rate from commercial and industrial buildings dropped fur- January through April, the highest level since the ther in the first quarter of 1987, to a level about 20 late 1970s. Sales of single-family homes, which percent below that of a year earlier. The decline had been boosted by tax considerations at the in spending for these types of buildings acend of 1986, also remained brisk through April. counted for the overall weakness in nonresiden- Subsequently, the backup in mortgage rates to tial structures early this year, in the face of an early-1986 levels resulted in some reduction in upturn in oil drilling and some increases in other single-family homebuilding, to around the pace categories. that prevailed last fall. In the multifamily market, A sizable swing in business inventories around the downtrend in activity that began in early 1986 the turn of this year was associated with sharp, continued through the first half of 1987. In the tax-induced fluctuations in sales. The surge in second quarter, multifamily starts were one-third consumer and business spending at the end of below last year's peak. Despite the adjustment 1986 was met to a considerable extent by drawing thus far to overbuilding and the reduced after-tax down stocks, which were then rebuilt at the profitability of multifamily housing investment, beginning of this year. This spring, inventoryrental vacancy rates nationwide are still close to sales ratios generally were not indicating serious record highs. imbalances, with the notable exception of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 Federal Reserve Bulletin • August 1987 auto industry. Domestic car makers boosted pro- tion, real federal purchases were little changed duction in early 1987 in excess of slackening between the second quarter of 1986 and the first sales, leading to a substantial backlog of unsold quarter of this year. cars on dealer lots. By June, a scaling back of Real purchases of goods and services by state assemblies had stemmed further accumulation, and local governments rose at a 4 percent annual but the industry entered the summer with stocks rate in the first quarter of 1987, close to the brisk that were quite large by historical standards. pace of the past several years. The growth in Before-tax profits of nonfinancial corpora- outlays continues to be boosted by efforts to tions, which had slipped a bit relative to GNP upgrade basic infrastructures. This rise in spendsince 1984, rose in the first quarter. After-tax ing has outpaced growth in receipts, however, profits relative to GNP were up as well, although and the sector's combined operating and capital the rise was damped by increases in corporate accounts (that is, excluding social insurance tax liabilities associated with the new tax law. funds) moved into deficit in the first quarter of Corporations paid out a slightly larger share of this year. In many instances, a current deficit earnings as dividends in the first quarter; none- does not signal any fundamental financial probtheless, internally generated funds remained siz- lem, as capital expenditures are financed through able relative to investment outlays. bond issues. Nonetheless, a good many units are experiencing a degree of difficulty, with oil-producing states under the most stress. Many states The Government Sector are responding with plans to trim their general funds budgets; some are considering tax in- A substantial reduction in the federal budget creases or are planning to retain the extra redeficit for fiscal year 1987 appears in train, with ceipts generated by changes in federal tax laws. the most recent estimate from the Congressional Budget Office at $161 billion, compared with $221 billion in fiscal 1986. Growth in receipts has been Labor Markets extremely rapid; this reflects, in large part, a one-time surge in tax payments this April from Employment accelerated early in 1987, and, deindividuals who realized capital gains last De- spite a slowing in recent months, the average cember, taking advantage of lower tax rates monthly increase in nonfarm payroll employment under the old tax code. But more fundamental of just over 200,000 so far this year exceeds the progress in reducing spending growth also ap- pace of hiring in 1986. The improvement in labor pears to have been made in the wake of the demand has been fairly broadly based. In manu- Gramm-Rudman-Hollings legislation. Total out- facturing, a two-year string of cutbacks in duralays have been rising at a rate of around 2 percent ble goods industries ended late last year, and in the current fiscal year, a marked slowing from hiring picked up a bit in the nondurable goods 8 percent per year during the preceding five sector. As a result, factory employment, overall, years. Although entitlements spending is still edged higher over the first six months of 1987. In increasing steadily, agricultural support pay- addition, the number of jobs in oil and gas ments and interest outlays have leveled off. extraction stabilized after the sharp retrench- Moreover, military spending has begun to rement in 1986. At the same time, the expansion of spond to reductions in defense authorizations jobs in the trade, services, and finance industries, and has slowed to about half its 1986 rate of despite some recent slowing, remained sizable. increase. In addition, there has been continued The combination of strong gains in employbudgetary restraint on discretionary domestic ment and declining numbers of unemployed programs. On balance, these developments have workers over the first half lowered the civilian held down the growth of federal purchases, jobless rate to 6'/4 percent on average in the which account for about a third of total federal second quarter from just under 7 percent at the expenditures; excluding changes in farm invenend of last year. The rate for adult men (aged 25 tories held by the Commodity Credit Corporayears and over), which had been stuck at around Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 641 5VI percent from mid-1984 to late 1986, moved first quarter; it had risen 2VI percent during 1986. below 5 percent this spring; further improvement Sharper accelerations occurred in the consumer also occurred for adult women, whose unem- price index, which was up at a 5'A percent rate ployment rate in the past year has moved below over the first five months of the year, and in the that of their male counterparts. producer price index for finished goods, which Despite falling unemployment, available mea- rose at a 41/2 percent annual rate over the six sures of labor compensation showed little sign of months ended in June. acceleration early this year. Hourly compensa- The rebound in energy prices began in Janution, as measured by the employment cost index, ary, when spot prices of crude oil jumped about rose 3.1 percent in the 12 months ending in $3 per barrel in response to the reductions in March, the same as the year-over-year changes output to which OPEC had agreed late in Decemin the second half of 1986 and down nearly ber. Higher crude oil costs were quickly passed three-quarters of a percentage point from a year on to end-users, and by May consumer prices for earlier. A wide gap persisted between the size of gasoline and fuel oil had risen about 15 percent, pay increases for white-collar workers and for retracing half of last year's decline. Spot prices those in blue-collar occupations. Nonetheless, of petroleum products moved up a bit further the slowing in wage inflation compared with a early in the summer as inventories tightened, and year earlier was relatively widespread by indus- these increases were supported subsequently by try and occupational group. An exception is the the renewal of OPEC's agreement to control Northeast region, where wages showed no decel- production. eration in the year ending in March and increases In addition to the developments in energy were still outpacing those in other parts of the markets, the influence of a lower value of the country by a sizable margin. dollar, as well as trade restrictions, on the prices The moderation in hourly compensation in- of imported goods became increasingly evident creases has been the principal factor holding at the retail level in the first part of this year. The down labor costs, as productivity continues to be dockside prices of non-oil imports turned up in quite sluggish. After declining in the second half 1986 after several years in which stable or declinof 1986, output per hour in the nonfarm business ing import prices had helped to restrain domestic sector rebounded in the first quarter of 1987, but inflation. Although price changes have varied remained little different from its year-earlier considerably among different categories of imlevel. Since 1984, productivity gains in the non- ported goods, some of the largest increases have farm business sector have averaged less than 1 been reported for consumer commodities, inpercent per year. The trend has been much more cluding autos. Retail prices for a number of items favorable in the manufacturing sector, where with higher-than-average import proportions— firms apparently have had some success in their such as apparel, footwear, and some other home efforts to boost the efficiency of their production goods—have shown markedly faster increases processes; indeed, productivity gains in U.S. than they did during the past several years. manufacturing between 1985 and 1986 out- These increases contributed to a sharp accelerastripped those recorded by other major industrial tion in the consumer price index for goods other countries. than food and energy between December and May compared with 1986, while the rise in prices of nonenergy services over the same period was Price Developments slightly less rapid than last year. At the domestic producer level, prices of fin- As expected, inflation rates have been higher so ished consumer goods and capital equipment far this year, largely reflecting a rebound in other than food and energy rose at an annual rate energy prices. The GNP fixed-weight price in- of less than 2 percent over the first six months of dex, a broad measure of inflation for goods and the year. At earlier stages of processing, howservices produced by the United States, in- ever, prices of domestically produced intermedicreased at an annual rate of about 4 percent in the ate materials other than food and energy rose at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 Federal Reserve Bulletin • August 1987 a 4 percent annual rate, after two years of able price stability. Growth of Ml also was essentially no change. This acceleration reflected expected to moderate considerably this year. a sharp rise in the prices of industrial chemicals However, the Committee in February elected not and some other petroleum-related materials as to set a target range for Ml for 1987 because of well as increases in a number of other categories. the continuing uncertainties about the relation- Prices of primary commodities other than pe- ship of this aggregate to the economy. These troleum also have increased so far in 1987. In the uncertainties partly reflected the substantial senagricultural sector, crop prices have retraced sitivity of its velocity to changes in financial part of last year's decline, which occurred when conditions that had been evident in recent years, farmers sold large amounts of the grain they had capped by a record postwar decline in the velocreceived from the government in lieu of cash ity of Ml over 1986. Instead, the FOMC decided payments. Prices of cattle and hogs also were up to continue evaluating movements in this aggremarkedly into the spring, but, with supplies gate in light of the behavior of its velocity, the improving, cattle prices have retraced much of rate of economic expansion, inflationary prestheir advance, and hog futures prices point to sures, and developments in financial markets. declines later this year. Prices of industrial ma- Over the first half of 1987, monetary policy terials, with the exception of a brief period early was conducted against a backdrop of heightened this year, have been rising fairly steadily since concerns about inflation, stimulated in part by the early autumn of 1986. Spot prices for pre- substantial downward pressure on the dollar in cious metals have been particularly sensitive to foreign exchange markets. At the same time, developments in foreign exchange markets and growth of money and credit aggregates moderrenewed market concerns about inflation; after ated considerably and the velocities of the climbing sharply into May, they fell back a bit broader monetary aggregates turned upward afwith the subsequent firming of the dollar. ter several years of rapid money growth and falling velocities. Measured from the fourth quarter of 1986, M2 in June was below the lower end MONETAR Y POLICY AND FINANCIAL of its target growth range, while M3 was around MARKETS IN THE FIRST HALF OF 1987 the lower end of its range. Meanwhile, growth in Ml slowed to a 13A percent pace and debt expan- The Federal Open Market Committee at its meet- sion moderated to a 93/4 percent rate. As presing in February established 1987 target ranges, sures on the dollar and inflation worries intensimeasured from the fourth quarter of 1986 to the fied in April and May, interest rates began to rise fourth quarter of 1987, of 5'/2 to 8V2 percent for substantially, especially in long-term markets. In both M2 and M3. It also set a 1987 monitoring late April and May, the Federal Reserve adopted range for domestic nonfinancial debt of 8 to 11 a somewhat less accommodative stance with percent. The M2 and M3 ranges represented a respect to the provision of reserves through open reduction of V2 percentage point from last year's market operations. These actions, together with target ranges, and the Committee expected monetary easing moves by key industrial trading growth to be well within the ranges, especially in partners, helped to stabilize the dollar and calm inflation fears, contributing to some decline in the absence of dramatic movements in interest long-term interest rates and strengthening of the rates. The range for debt was unchanged from dollar. 1986 but below the actual outcome in that year and other recent years; thus, the Committee anticipated that debt growth also would slow this year. Money, Credit, and Monetary Policy The Committee viewed a substantial slowing in money and credit growth from the rapid pace of In its conduct of policy thus far this year, the 1986 as likely to be consistent with continuation Federal Reserve has given a good deal of weight of sustainable economic expansion and condu- to a number of considerations in addition to the cive to further progress over time toward reason- monetary aggregates—principally recurrent epi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 643 Growth of money and credit Percentage changes at annual rates Domestic Period Ml M2 M3 nonfinancial sector debt Fourth quarter to fourth quarter 1979 77..99 8.2 10.4 12.2 1980 • 7.3 8.9 9.6 9.6 1981 5.1(2.4)' 9.3 12.3 9.9 1982 8.6 9.1 9.9 8.9 1983 10.2 12.1 9.8 11.5 1984 5.4 7.9 10.7 13.9 1985 12.1 8.8 7.7 13.4 1986 15.3 8.9 8.8 13.2 Fourth quarter 1986 to second quarter 1987 9.9 4.5 5.3 9.8'' Fourth quarter 1986 to June 1987 7.7 4.0 5.3 9.8' Quarterly average 1986:1 8.8 5.3 7.7 15.5 2 15.5 9.4 8.7 10.2 3 16.5 10.6 9.7 12.5 4 17.0 9.2 8.0 12.1 1987:1 13.1 6.3 6.3 10.4 2 6.4 2.5 4.1 9.0* 1. Ml figure in parentheses is adjusted for shifts to NOW accounts e estimated in 1981. sodes of heavy downward pressure on the dollar, In foreign exchange markets, the dollar had indications from long-term securities and com- begun to decline in late December, after a period modity markets of heightened inflation expecta- of some stability. The drop continued through tions, and evidence that the economy continued January, amid market concerns about the prosto advance at a pace sufficient to produce rising pects for correcting U.S. and foreign external levels of resource utilization. Under these cir- imbalances. In late February, the statement in cumstances, interest rates tended to move Paris by the ministers of finance and central bank higher, and the patterns of rapid money growth governors of six major industrial countries that and declining velocities of the last several years, they "agreed to cooperate closely to foster stawhen inflation and interest rates were moving bility of exchange rates around current levels," down, began to be reversed. Growth of the broad along with a cut in the discount rate by the Bank aggregates remained around the lower bounds of of Japan, seemed to stabilize the dollar for a their growth cones through most of the first half time. of the year, although M2 dropped well below its The spread between private short-term rates long-run range later in the period. Growth of both and Treasury bill rates widened after Brazil an- M2 and M3 was considerably below the pace of nounced a suspension of interest payments to recent years, and their velocities increased. Ex- banks in February, and subsequently widened pansion of Ml also slowed markedly, while further as the Treasury's paydown of bills, which growth of domestic nonfinancial sector debt began early in the year, picked up and foreign moderated. official institutions purchased bills with the pro- Through the early spring of this year, System ceeds of dollars acquired in exchange market open market operations were conducted to keep intervention. Reflecting the somewhat higher pripressures on the reserve positions of depository vate short-term interest rates and concomitant institutions unchanged from last year. In Janu- increases in funding costs, commercial banks ary, the strong credit and money demands asso- raised the prime rate by 'A percentage point on ciated with a burst of tax-related financial activ- April 1. ity in late 1986 began to abate, and short-term Long-term rates, which had not been much interest rates eased; however, these rates re- affected by the transitory credit demands of late mained above levels prevailing in the fall of last 1986, continued to drift down in the early months year. of 1987, displaying little short-term volatility. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 Federal Reserve Bulletin • August 1987 The placid conditions in long-term markets were instruments over monetary assets became more abruptly changed in late March, primarily by pronounced in the first half of the year, growth of developments in the international sphere. An- the monetary aggregates slowed. M2 decelerated nouncements of trade sanctions by the United in both quarters, expanding at an annual rate of States, persisting weakness of the dollar, and only Vh percent in the March-to-June period. In disappointing trade figures all raised questions addition to the influence of rising interest rates, about continuing private demands for dollar as- tax reform may have weakened the public's sets, prospects for inflation, and the response of demand for M2 assets, particularly householdmonetary policy. The dollar dropped sharply in type deposits, to the extent that it induced indithe last three weeks of March, and between late viduals to pay down consumer debt or to finance March and late April, yields on 30-year govern- expenditures out of liquid assets rather than with ment bonds rose about 1 percentage point on credit. The velocity of M2 is estimated to have balance. The exchange and bond markets be- risen in the first and second quarters, after decame highly volatile during this period, as the clining in 1985 and 1986. dollar continued to drop and inflation fears ap- The slowing of M2 growth was accompanied peared to be intensified by the publication of by a marked change in the composition of deposit adverse price data. Mortgage rates and yields on inflows away from transactions and other highly mortgage pass-through securities reacted very liquid instruments and toward longer-term retail promptly to the deterioration in the bond markets deposits. This reversal of the pattern of portfolio and, indeed, rose more than most other long- shifts in 1985 and 1986 occurred as rates on time term rates as many investors shied away from deposits adjusted more promptly to rising market these instruments subject to substantial prepay- rates than did yields on more liquid monetary ment risk. components, and the deposit rate curve steep- The effects of these developments also were ened. evident in short-term credit markets, where rates Growth in transactions instruments fell in the rose in April partly in anticipation that monetary first half to a pace not seen since 1984, the last policy would have to firm to contain pressures on time interest rates rose on a sustained basis. prices and the dollar. In late April and again in Demand deposits, along with other checkable May, the Federal Reserve did move to tighten deposits (OCDs), were boosted smartly in April the availability of nonborrowed reserves through as individuals prepared to pay tax liabilities, open market operations. Short-term interest which were swollen by capital gains taken in 1986 rates rose about Vi to 3A percentage point during to avoid higher rates under tax reform. On bal- April and May, and the prime rate was raised ance, however, demand deposits have exhibited twice more, on May 1 and May 15, in quarter- no sustained strength since late last summer. point increments. The System's firming actions, Among other factors, the rise in interest rates along with complementary moves abroad, helped reduced the volume of demand deposits that to stabilize the dollar and ameliorate the con- businesses need to hold as compensating balcerns about the inflation outlook. ances for bank services. As rates on time depos- Along with some better price news and evi- its and market instruments rose, OCDs became a dence of improvement in our trade deficit, this less attractive savings vehicle. The progressive policy appeared to impart an improved tone to slowing this year of OCD growth, which had short-term and, especially, long-term credit mar- averaged close to 30 percent during most of kets over the latter part of May and June. Since 1986, was interrupted only by the April surge. May, most short-term rates have posted declines With demand deposits and OCDs both running of VA percentage point or more. Longer-term mar- off in June, growth in Ml for the second quarter kets generally have registered greater gains, and was down to a 6'/2 percent rate. The velocity of in early July long rates were off Vi to 3A percentage Ml in the second quarter is estimated to have point from their May highs. The dollar, mean- changed little, after declining in each quarter while, has shown more dramatic improvement, since 1984. regaining the ground it lost in April and May. Growth in other liquid balances also has been As interest rate incentives favoring market falling. Savings deposits, after expanding at a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 645 rate of around 30 percent since the late summer and growth of short-term business credit came to of last year, slowed in the second quarter and a halt. advanced at a rate of only 10 percent in June, and Growth of consumer installment credit was money market deposit accounts have been par- considerably diminished during the first half. The ticularly weak this year. By contrast, small time reduced deductibility of consumer interest paydeposits, which had run off over much of last ments under the new tax code encouraged this year in an environment of falling short-term development. The tax law change made the use rates, expanded significantly in June for the first of mortgage credit relatively more attractive, and time since April 1986. Growth in small time the active promotion by lenders of home equity deposits this year has been especially strong at lines of credit reinforced tendencies toward subthrift institutions, reflecting elevated offering stitution. In addition to credit taken down under rates and, in certain cases, a shift to deposits in home equity lines, mortgage growth in the first denominations of under $100,000, as some of half was maintained by heavy volumes of new these institutions have encountered difficulties in and existing home sales. issuing large time deposits. Federal government credit needs in the first Even with weak inflows to core deposits, the half were held down by unusually strong tax need among commercial banks to tap wholesale payments stemming from the retroactive repeal managed liabilities was limited by a moderation of the investment tax credit and, principally, in demands for credit. M3 growth was further from the capital gains realized late last year. The damped in the first half as banks obtained funds budget showed a small surplus in the April-tofrom sources not encompassed by the monetary June period, after a $59 billion deficit in the first aggregates, including borrowing from their for- quarter. Net borrowing from the public nevertheeign branches and a sharp rise in Treasury de- less rose in the second quarter on a seasonally posits. Federal Home Loan Bank advances to adjusted basis as the Treasury replenished its thrifts also were strong, although below the pace cash balances, which had been drawn down of last year. Growth of M3 fell below that of sharply in the initial months of the year. The income in the first half, and M3 velocity appar- Treasury ran off bills in both quarters but continently rose in both quarters, the first sustained ued to issue coupon securities in volume. Federal increase in three years. debt expanded at a 93A percent annual rate in Credit flows were reduced in the first half of the first half of the year, down from the pace of 1987, with total domestic nonfinancial sector 1986. debt expanding at an annual rate of around 93A Borrowing by state and local governments has percent, compared with rates in excess of 13 fallen off this year. Issuance of municipal debt for percent in each of the preceding three years. new capital has been slowed considerably by Even so, expansion of both the private and provisions of tax reform that narrowed the defipublic components of the debt aggregate contin- nition of public-purpose debt and constrained ued to outstrip the growth of income, as gener- private-purpose offerings. In addition, issuance ally has been the case in the 1980s. of refunding bonds, which was strong in the first Overall business credit demands continued to quarter, slackened after April because of higher be buoyed in the first half by heavy net retire- interest rates. ments of shares associated with mergers, buy- The financial system has continued to evidence outs, and other corporate restructurings. With strains in 1987. Indications that the agricultural long-term rates subdued in the first three months sector is beginning to stabilize have emerged, of the year, firms concentrated their borrowings with loan delinquencies declining, land prices in bond markets and short-term business credit bottoming out, and export volume firming; the contracted. However, as long-term markets de- failure rate among agricultural banks seems teriorated in April, bond issuance abated and likely to have peaked. However, the Farm Credit business credit demands focused on the commer- System, the nation's largest farm lender, lost cial paper market. By June, with some improve- considerable sums in 1985 and 1986, and many of ment in long-term markets, these financing pat- its units continue to struggle with troubled loan terns reversed again as bond issuance picked up portfolios. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 Federal Reserve Bulletin • August 1987 In addition to difficulties with agricultural vated by continued losses. Moreover, the probloans, commercial banks have been saddled with lems of some troubled institutions intensified this persisting problems in their energy and develop- year as the real estate market in certain areas of ing-country loan portfolios. Although some the country remained depressed and interest banks remain highly profitable, 19 percent lost rates backed up. money last year, compared with about 3 percent The difficulties of the thrift industry are miras the decade began; loan-loss provisions were rored in the situation of the Federal Savings and the main cause of the earnings problems. The Loan Insurance Corporation. Estimates indicate banking system is likely to post record losses this that current and potential claims against the year owing to huge reserve provisions taken by FSLIC exceed its reserves by significant large banks primarily as a consequence of devel- amounts. With premiums levied on member inopments in the international debt area. Despite stitutions already at a statutory maximum, some the shrinkage in the book value of shareholder action clearly is called for to strengthen the equity recognized by these actions, share prices FSLIC and bolster its ability to deal with probrose at many banks that announced large in- lem institutions. Plans currently under study by creases in loan-loss reserves. the Congress would involve using retained earn- Net operating income before taxes for solvent ings from the Federal Home Loan Banks to thrift institutions rose last year as interest mar- capitalize a financing corporation that, in turn, gins widened with falling market rates, and thrifts would issue obligations and invest the proceeds overall have raised their ratio of net worth to in FSLIC capital stock. At this stage, these plans total assets by taking advantage of strong stock call for a maximum capacity to issue debt of $81/2 prices to issue large volumes of equity. Nonethe- billion. This would be repaid over an extended less, at a significant minority of thrifts, already period of time through FSLIC assessments on negative net worth positions have been aggra- member institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

647 Industrial Production Released for publication June 16 In market groups, output of consumer goods increased 0.6 percent in May following a decline Industrial production increased an estimated 0.5 of 0.8 percent in April. Auto production was off percent in May, while the level of output in each slightly in May, but output of lightweight trucks of the preceding three months was revised up- as well as that of home goods and nondurable ward. In May, gains in output were widespread consumer goods increased during the month. among products and materials. At 127.8 percent Auto assemblies were trimmed further in May to of the 1977 average, the total index for May was an annual rate of 7.1 million units, but still 2.9 percent higher than that of a year earlier. exceeded sales for May; industry schedules for Ratio scale, 1977 = 100 140 Products TOTAL INDEX 120 100 80 MANUFACTURING Durable ^ - 140 MATERIALS Durable 120 Nondurable -p^^ — Nondurable / 100 1 1 1 1 1 1 INTERMEDIATE PRODUCTS Business supplies Construction supplies I I L 240 140 MOTOR VEHICLES AND PARTS FINAL PRODUCTS Defense and space 200 120 100 160 140 80 20 Consumer goods 100 60 80 1981 1983 1985 1987 1981 1983 1985 1987 All data are seasonally adjusted. Latest figures: May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 1977 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuuppp 1987 1987 MMMaaayyy 111999888666 tttooo MMMaaayyy Apr. May Jan. Feb. Mar. Apr. May 111999888777 Major market groups Total industrial production 127.2 127.8 -.1 .5 .0 -.1 .5 2.9 Products, total 135.6 136.5 -.1 .9 .1 -.4 .6 3.1 Final products 134.4 135.2 .0 1.0 .0 -.5 .6 2.8 Consumer goods 126.6 127.4 -.4 .6 .0 -.8 .6 2.5 Durable 118.4 119.4 -1.2 2.0 -.6 -2.6 .8 4.9 Nondurable 129.6 130.3 -.1 .2 .3 -.1 .6 1.7 Business equipment 140.4 141.2 .7 1.9 -.1 -.1 .5 2.4 Defense and space 186.5 187.4 -.3 .7 .0 -.1 .5 5.3 Intermediate products 140.0 140.7 -.4 .4 .3 -.1 .5 4.2 Construction supplies 127.9 128.6 .3 .1 .1 -.5 .5 4.2 Materials 115.6 116.0 .0 .0 -.1 .4 .4 2.7 Major industry groups Manufacturing 132.0 132.7 .1 .7 .1 -.2 .5 3.5 Durable 129.8 130.4 -.1 1.1 .1 -.6 .5 2.7 Nondurable 135.1 135.9 .3 .1 .2 .4 .6 4.6 Mining 96.5 96.3 .5 -1.0 .2 .1 -.2 -3.5 Utilities 110.4 111.9 -1.0 .1 -.3 1.1 1.4 3.1 NOTE. Indexes are seasonally adjusted. June production show a further small decline. of both construction and business supplies in- Production of business equipment was up in creased half a percent in May but has shown, on May, continuing the overall improvement that balance, only small gains since the beginning of began in January, particularly in the output of the year. Total materials production rose 0.4 manufacturing and commercial equipment. percent following a similar gain (upward revised) After almost no change in both March and in April. Among durable materials, output of April, output of defense equipment increased in metals and equipment parts increased in May; May, bringing production to a level about 5 nondurable materials, such as chemicals and percent higher than that of a year earlier. Output paper, also rose. Output of energy materials, although relatively strong in May due largely to increased electricity generation, remained below year-earlier levels. Total industrial production—Revisions In industry groups, total manufacturing output Estimates as ; hown last month and current estimates increased 0.5 percent in May following a decline MMoonntthh Percentage change of 0.2 percent in April, which occurred mainly in from previous Index (1977=100) months durables. In May, the durable manufacturing sector almost regained March levels; nondurable Previous Current Previous Current manufacturing, with a gain of 0.6 percent in May February 127.1 127.2 .4 .5 following a revised rise of 0.4 percent in April, March 126.8 127.3 -.2 .0 April 126.3 127.2 -.4 -.1 surpassed the March level considerably. Mining May n.a. 127.8 n.a. .5 output edged down in May, but production by utilities was up sharply. n.a.—Not applicable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

649 Statement to Congress Statement by Manuel H. Johnson, Vice Chair- and Supervisory Practices with the goal of obman, Board of Governors of the Federal Reserve taining a consensus on how best to proceed with System, before the Subcommittee on Financial efforts to discourage criminal elements from us- Institutions Supervision, Regulation and Insur- ing the international payments system for the ance of the Committee on Banking, Finance and purpose of laundering money.1 The subject was Urban Affairs, U.S. House of Representatives, first raised with the Basle Committee in a meet- June 9, 1987. ing in Washington last June. Although all members of the committee were clear in their view I am pleased to appear on behalf of the Federal that abuse of the banking system in the form of Reserve Board to offer additional testimony on currency laundering was a serious matter, many the issue of money laundering. The Federal members felt that the primary responsibility for Reserve has a strong commitment to implement- monitoring and detecting this activity rested ing appropriate policies to ensure compliance largely with law enforcement authorities. Nonewith laws enacted to eliminate money launder- theless, the committee agreed that the subject ing. should be reviewed, and at the December 1986 My goal today is to more fully inform the meeting the U.S. delegation agreed to draft a committee of efforts by myself and by the staff to paper outlining the issue and making recommenpress for greater international cooperation by dations. bank supervisors in addressing the use of bank- In addition, this paper will propose rules of ing organizations to launder money. In addition, conduct that could be utilized by banks in any the committee has asked that I give a status country to discourage the use of the payments report on the studies required under the Anti- system for illegal transactions. In constructing Drug Abuse Act of 1986 and that I address the this proposal, we have consulted with other subject of bank fraud and insider dealing. Final- countries for the purpose of incorporating their ly, I will provide further information on the ideas as well as seeking their support of a more Federal Reserve's supervisory efforts to ensure active role for bank supervisors. We expect that compliance with the Bank Secrecy Act and other in the next few weeks a draft of an initial laws to discourage the use of banks and the proposal will be ready for review by the Basle payments system generally for laundering mon- Committee, and we are attempting to put the ey. item on the committee agenda for the regular meeting later this month. We recognize that encouraging foreign supervisors to endorse the INTERNATIONAL COOPERATION concept that international banks should adopt a code of conduct falls short of the extensive The Federal Reserve shares the concerns of this currency reporting requirements in place in the committee and believes that the effectiveness of United States; however, we are hopeful that this efforts to discourage money laundering could be further enhanced by initiatives on an international level. For the past year, the Federal Reserve, 1. The Basle Committee was established at the end of 1974 by the central bank governors of the Group of Ten industratogether with the other federal banking agencies, lized countries with the objective of strengthening collaborahas worked to secure the cooperation of bank tion among national authorities in their prudential supervision supervisory authorities in other countries of the of international banking. The committee, whose members are officials of the central banks and supervisory agencies, meets world. Discussions have been held among memthree times a year at the Bank for International Settlements in bers of the Basle Committee on Bank Regulation Basle, Switzerland. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 Federal Reserve Bulletin • August 1987 effort, in combination with the activities of our The other study requires that information be federal law enforcement authorities, will make a furnished to this committee on the following: (1) meaningful contribution toward inhibiting the the extent to which foreign branches of domestic use of the banking system for illicit money laun- institutions are used to facilitate illicit transfers dering. of currency and other monetary instruments or Attempts to eliminate money laundering to evade reporting requirements; (2) the extent to through legislation are, of course, not confined to which U.S. law is applicable to the activities of the United States. Recently, Switzerland, for such foreign branches; and (3) methods for obexample, has proposed laws designed to make taining the cooperation of foreign countries for money laundering a crime. It is our hope that the purpose of enforcing money laundering laws other countries will follow suit. The proposed and currency reporting requirements. The Federrules of conduct to which I have just referred al Reserve and the Comptroller of the Currency endorse the concept that bank supervisory au- were asked to assist the Treasury on sections 2 thorities should support legislation that would and 3 of the study. While we are still in the make money laundering a crime. process of developing materials to provide to the Federal Reserve efforts to encourage interna- Treasury, we expect that the study will be comtional cooperation in this area will not be limited pleted within the committee's requested time to the Basle Committee. We intend to discuss frame. this issue when appropriate at formal and informal meetings with foreign bank supervisory authorities. It is our hope, however, that the work BANK FRAUD AND INSIDER DEALING going on in the Basle Supervisors' Committee will serve as the principal vehicle for advancing I would now like to turn to the subject of bank effective constraints on the involvement of inter- fraud and insider dealings. Experience has demnational banking institutions in money launder- onstrated that insider abuse and misconduct, as ing activities. well as criminal activities, are among the factors contributing to bank failures. Data provided to INTERNATIONAL STUDIES the Department of Justice and the Federal Bureau of Investigation (FBI) confirm that criminal The Anti-Drug Abuse Act of 1986 requires that misconduct, such as fraud and embezzlement, is two studies be conducted and furnished to this a serious problem. For example, the FBI recentcommittee. Both of these studies are being pre- ly reported that in 1985 it worked on 6,373 bank pared under the auspices of the Department of fraud and embezzlement cases—one-third of the Treasury in consultation with the Board of which involved amounts exceeding $100,000. In Governors. The Justice Department is also to 1986, this number rose to 7,286—with a correcontribute to one of the studies. sponding increase in the number of cases involv- The first study deals with the results of discus- ing more than $100,000. The FBI reports that in sions with central banks and other appropriate 1985 the amount of reported dollar losses begovernmental authorities concerning the estab- cause of bank fraud and embezzlement totaled lishment of arrangements to facilitate the flow of about $850 million; in 1986, this total increased to information among supervisory authorities more than $1.1 billion. throughout the world. The flow of information Over the past several years, the Federal Reamong international supervisors is particularly serve by itself, and in conjunction with the other important, and the Federal Reserve is discussing federal banking and law enforcement agencies, with international authorities the need to im- has taken a number of steps to address bank prove communications and information-sharing fraud and insider abuse. A major part of this procedures to strengthen supervisory activities effort relates to our involvement in the Interagenvis-a-vis international banking organizations. We cy Bank Fraud Enforcement Working Group (the expect to be able to provide the Treasury with "Working Group") that was formed in April the results of our discussions in sufficient time to 1985. The Working Group is comprised of offiensure a timely response to this committee. cials from all of the federal financial institution Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 651 regulator agencies, the Justice Department, and Attorney General called upon each U.S. attorney the FBI. The principal results of the Working to intensify his or her efforts in bank fraud Group's efforts over the past two years include enforcement. In a memorandum distributed in the following: February 1987, the Attorney General asked all • The Working Group developed and imple- U.S. attorneys to prepare inventories of bank mented a uniform criminal referral form to be fraud cases involving more than $100,000 that are used by all banks, bank holding companies, pending prosecutive decision or action, to make savings and loan institutions, and credit unions. prompt prosecutive determinations in those cas- • The Department of Justice developed and es ready for decision, and to assign the needed implemented a "significant referral" tracking personnel to complete the investigation of open system. For this purpose, a criminal referral is cases with the goal of indictment or declination considered "significant" if the dollar amount of within nine months. the suspected violation exceeds $200,000, the As part of this overall effort, the Federal suspected offense involves insider abuse by sen- Reserve Board has attempted to improve its ior officials, or the violation involves, in the communication and coordination with the enopinion of Board staff, activities or practices that forcement agencies in this all-important area. I affect the integrity of the supervisory process or believe that we have made considerable progress otherwise have nationwide implications. Each in strengthening our working relationships with significant referral received by the Federal Re- the Department of Justice and the FBI at both serve System is forwarded to the Fraud Section the federal and the local levels. There is also of the Department of Justice for tracking and now, I believe, a better mutual understanding of special attention. the procedures and responsibilities of the federal • As a complement to these efforts, the En- financial institution supervisory agencies and the forcement Section of the Board's Division of federal law enforcement agencies. Banking Supervision and Regulation developed Besides these interagency efforts, the Board and implemented an automated system to moni- has sought to enhance its supervisory and entor and track all of the Federal Reserve criminal forcement activities regarding insider abuse and referrals. Complete access to the Board's crimi- misconduct. This effort is reflected in an increase nal referral recordkeeping system is available to in the number of formal enforcement actions all the agencies comprising the Working Group. taken by the Board. In the period 1981-82, the • The members of the Working Group devel- Federal Reserve System averaged 42 enforceoped and distributed lists of key persons to be ment actions per year; from 1984-86, the average contacted at the local FBI offices, U.S. Attor- number of enforcement actions had increased to ney's offices, Federal Reserve Banks, and all 177. These figures include actions against state district offices of the Comptroller of the Curren- member banks, bank holding companies, and cy, the Federal Deposit Insurance Corporation, Edge act corporations. Moreover, during this and the Federal Home Loan Bank Board on period, there has been a significant increase in matters relating to criminal referrals and bank- the number of enforcement orders addressing related insider abuse and fraud. These lists pro- improper or abusive actions of bank officials. vide important information for the staffs of the This increase in enforcement actions has ocagencies that are reponsible for criminal referral curred across the Board—involving civil money and follow-up. penalties and fines, cease and desist orders, and • The examiner training programs sponsored suspension and removal proceedings against offiby the Federal Financial Institutions Examina- cers and directors. tion Council have been expanded to include Board staff members are also working with extensive instruction in the detection and investi- their counterparts at the other federal financial gation of insider abuse and misconduct within institution regulatory agencies to develop a joint financial institutions. In addition, the members legislative proposal for amending the agencies' of the Working Group jointly sponsor white- enforcement statutes. The purpose of the procollar crime seminars with the FBI. posal would be to clarify the agencies' authority • At the urging of the Working Group, the to obtain reimbursement from individuals who Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 Federal Reserve Bulletin • August 1987 violate applicable banking laws; broaden the 227 examinations were completed. The number agencies' powers to issue cease and desist or- and intensity of our reviews of currency reportders; strengthen removal procedures; and codify ing requirements have increased steadily in the existing interpretations of the Right to Financial past five years. Privacy Act. We believe that these changes During the period covered by these examinawould strengthen the agencies' ability to address tions, deficiencies were discovered in 256 banks. bank fraud and insider dealings, and it is our These deficiencies included failure to file currenhope that a proposal will be ready soon for cy transaction reports, filing incomplete or inacreferral to the Congress. curate currency transaction reports, improper maintenance of exemption lists, and poor recordkeeping practices. In all cases, the banks have DOMESTIC REGULATORY ACTIVITIES been required to initiate corrective action and in 16 cases the violations resulted in our forwarding To conclude my testimony, let me describe the details to the Justice Department for further range of our domestic activities to fight money review. Of course, as a matter of policy, every laundering in U.S. banks. First, the Federal violation is reported to the Department of Trea- Reserve provides monthly reports on currency sury on a quarterly basis. flows for several government agencies. These While considerable effort has been expended reports supply data on currency sent into and out in recent years to ensure that adequate and inof each of the 37 Federal Reserve offices. The depth examinations are being conducted, the purpose of the report is to establish payment Federal Reserve reviews on a regular basis its patterns throughout the United States so that practices and procedures in an effort to strengthmarked deviations in normal patterns can be en its oversight activities. In addition, as already identified and enforcement resources more effi- noted, the Federal Reserve actively participates ciently deployed. in the Bank Secrecy Act Interagency Working In addition, Federal Reserve Banks provide Group that is chaired by the Treasury Departcurrency, shipping, and receiving data to govern- ment. This working group has developed new ment agencies covering cash flows between the procedures that are designed to assist in detect- Federal Reserve and a particular depository in- ing violations of law. These procedures are curstitution that is ordering or depositing cash. That rently in the process of being integrated into our information is useful also in establishing marked examination instructions. deviations in normal depositing and ordering patterns. The Federal Reserve is fully coopera- REGULATION tive in responding to any requests for data of this type. Pursuant to the Anti-Drug Abuse Act of 1986, the federal banking agencies have developed regulations that require banks to establish and maintain EXAMINATIONS procedures to ensure compliance with the Bank Secrecy Act. The Federal Reserve published its The Board believes that the most effective way regulations for this purpose as amendments to to ensure that banks are meeting the recordkeep- Regulation H on January 27, 1987. These amending and reporting requirements of the Bank Se- ments require banks to implement a written crecy Act is to conduct on-site examinations. program that must be approved by the bank's The Federal Reserve has developed detailed directors to assure compliance with the recordexamination procedures in this area and has held keeping and reporting requirements of the Bank special training sessions for examiners as well as Secrecy Act. The compliance program must, at a for bankers. It is our policy to review compliance minimum, include four elements: (1) a system of with the Bank Secrecy Act at each examination internal controls; (2) independent testing for of a state member bank or Edge act corporation. compliance; (3) designation of individual(s) to be In 1986, 844 such examinations were conducted, responsible for compliance; and (4) appropriate and through the first quarter of 1987 an additional training of employees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 653 Noncompliance with this regulation will result of the Bank Secrecy Act. When violations exist, in the issuance of a cease and desist order. procedures require that a thorough analysis be Although no such orders have yet been issued performed that looks carefully at the nature of based on this recently published regulation, the the violations, efforts taken by the Bank to cure Board has included requirements to strengthen the deficiencies, and procedures developed to compliance with the Bank Secrecy Act in other prevent any future occurrence. Applicants are formal supervisory actions. Between 1980 and required to provide detailed responses on the 1986, the Board or the Reserve Banks entered cause of the violations and to submit copies of into 165 enforcement orders or agreements with their compliance programs, and procedures, and state member banks. Provisions requiring cor- their related internal audit reports. Normal procrective action relative to the Bank Secrecy Act essing of any application is suspended until all were included in 25 of these enforcement orders. questions relating to Bank Secrecy Act compliance are fully resolved. From the beginning of 1985 through May 1987, 125 applications in- IND US TR Y ED UCA TION volved issues relating to Bank Secrecy Act compliance. In 25 of these cases, resolution of the Besides focusing on strengthening regulations compliance problems resulted in a delay in the and examining procedures, efforts have been processing of the application beyond the normal directed at educating banks and the public on the 60-day period. requirements of the Bank Secrecy Act and on Those cases that involve serious issues of Federal Reserve policies and procedures regard- noncompliance and that cannot be resolved by ing currency reporting. Board staff members furnishing additional information may require a have participated in seminars and programs in- special examination. These examinations are tended to educate bankers about the Bank Secre- conducted either by the Federal Reserve or by cy Act, especially as it relates to the Regulation the regulatory agency responsible for the pri- H amendments and the requirements for curren- mary supervision of the applicant banking orgacy reporting. We believe that these seminars nization. No action is taken on any application have been particularly helpful and have achieved until satisfactory compliance is demonstrated a substantial degree of participation among bank and any associated issues are resolved. An ongomanagers and compliance personnel. Regional ing investigation by any law enforcement agenprograms conducted through our District banks cy, would also suspend processing of the applicahave also provided opportunities for bank com- tion. pliance officers to discuss issues and to ask questions relating to the Bank Secrecy Act. To provide assistance and guidance for state CONCLUSIONS member banks in developing compliance programs, the Federal Reserve has developed and The Federal Reserve shares this committee's issued guidelines and sample documentation. concern that banking organizations not be used These materials have been widely distributed to launder funds or participate in other illegal or and, we understand, have been particularly use- improper activities. To this end, we have devotful to banking organizations in developing com- ed considerable effort and resources to monitor pliance programs. compliance of state member banks with the Bank Secrecy Act and the Anti-Drug Abuse Act of 1986. We have tightened our examination proce- APPLICATIONS dures, put in place policies for carefully reviewing a bank's compliance record at the time an Any banking organization or bank holding com- application is made, and taken steps to ensure pany making application to the Federal Reserve that criminal referrals are made in a timely receives a careful scrutiny to determine whether fashion with appropriate follow-up. The Federal the organization is in compliance with the cur- Reserve has also contributed to banker educarency recordkeeping and reporting requirements tional programs and provided guidance to bank- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 Federal Reserve Bulletin • August 1987 ing organizations for complying with the Bank that we must remain vigilant and continue our Secrecy Act. Finally, we are pursuing coopera- efforts to improve compliance with the Bank tive efforts on the international level that we Secrecy Act. The Federal Reserve intends to hope will heighten awareness of the need to continue to place strong emphasis on its overstrengthen supervisory and enforcement activi- sight responsibilities for Bank Secrecy Act comties worldwide. pliance and to contribute fully to efforts to elimi- Despite these intense efforts, we recognize nate money laundering. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

655 Announcements STATEMENT BY CHAIRMAN VOLCKER ON NOMINATIONS SOUGHT FOR THE DEATH OF ARTHUR F. BURNS APPOINTMENTS TO CONSUMER ADVISORY COUNCIL Paul A. Volcker, Chairman of the Federal Reserve Board, issued on June 26,1987, the follow- The Federal Reserve Board announced on June ing statement on the passing of Arthur F. Burns: 25, 1987, that it is seeking nominations of qualified individuals for 11 appointments to its Con- Arthur Burns was a staunch supporter of the Feder- sumer Advisory Council to replace members al Reserve as an institution and a firm friend of many whose terms expire on December 31, 1987. of us within it. We have enormously benefited from The Consumer Advisory Council was estabboth that support and that friendship. He will be lished by the Congress in 1976, at the suggestion honored in our memory. of the Board, to advise the Board on the exercise of its duties under the Consumer Credit Protec- Arthur first came to the Federal Reserve in 1970 as Chairman of the Board of Governors. He was then at tion Act and on other consumer-related matters. an age that, for most men, might be considered a The Council meets three times a year. normal time for retirement. He had great vigor and Nominations should include the name, adbrought to his new position force of personality, dress, and telephone number of the nominee, intellectual vigor, and physical endurance that had a past and present positions held, and special profound influence throughout the institution and on U.S. economic policy for eight years. knowledge, interests, or experience related to consumer credit or other consumer financial Arthur without doubt saw those active "Fed" years services. as a culmination of a career already distinguished by Nominations should be submitted in writing to promising studies of the business cycle, by large Dolores S. Smith, Assistant Director, Division of contributions to the teaching and the profession of Consumer and Community Affairs, Board of economics at Columbia University and the National Governors of the Federal Reserve System, Bureau of Economic Research, and by public service as President Eisenhower's first Chairman of the Coun- Washington, D.C. 20551. Nominations should be cil of Economic Advisers, and as Counselor to Presi- received by August 31, 1987. dent Nixon, whom he had long advised informally. It was a measure of the breadth and strength of the man that in his mid-70s he took on a key diplomatic assignment, serving with great distinction as Ambassa- DIRECT DEPOSIT OF SOCIAL SECURITY dor to the Federal Republic of Germany. PAYMENTS IN THE UNITED KINGDOM The Federal Reserve and the Social Security MEETING OF CONSUMER ADVISORY Administration announced on June 26, 1987, the COUNCIL beginning of direct electronic deposit of Social Security benefit payments in the United King- The Federal Reserve Board announced that its dom. Consumer Advisory Council met on June 25 and About 5,300 of the United Kingdom's 14,000 26 in sessions open to the public. recipients of U.S. benefits have had their June The Council's function is to advise the Board benefit payment electronically deposited into on the exercise of the Board's responsibilities their bank accounts. This marks the first time under the Consumer Credit Protection Act and that the U.S. government has made direct deposon other matters on which the Board seeks its it payments overseas. advice. The new system assures prompt payment of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 Federal Reserve Bulletin • August 1987 benefits on the same day as U.S. recipients, activities. The Board had previously requested normally the third day of the month, and obvi- comments on a specific schedule of assessments ates the process of changing U.S. dollars into and fees for the supervision of Edge act corpora- British pounds sterling. Direct deposit is also a tions and for processing various applications more efficient means of payment delivery than submitted to the Federal Reserve System by paper checks. banks, bank holding companies, and other com- The start of this new international direct de- panies and individuals. posit program culminates a two-year, multi- The Board is now seeking comment on a agency effort by the Social Security Administra- revised proposal that would charge an annual tion, Federal Reserve Bank of New York, Bank assessment for inspection and supervision of the of England, British Automated Clearing Ser- parent company and nondepository subsidiaries vices, Ltd., and the Departments of Treasury of bank holding companies as well as a signifiand State to pay overseas beneficiaries electroni- cantly reduced fee schedule for supervising Edge cally rather than by paper check. This is the first act corporations and for processing applications. time that the Federal Reserve has transformed While the Board is still considering whether to the U.S. automated clearinghouse (ACH) format begin charging for certain supervisory activities, into that of another country to transfer payments the Board seeks comment on this revised apto foreign financial institutions. proach of recovering a smaller percentage of Although implementation plans have not been costs over a broader range of services. completed, the direct deposit of Social Security payments to beneficiaries residing in other countries, such as Canada and West Germany, is CHANGES IN BOARD STAFF under study. The Board of Governors announced the following official staff actions effective June 17, 1987: AMENDMENT TO REGULATION Y (1) Change of title of James L. Kichline from Director to Staff Director, Research and Statis- The Federal Reserve Board announced on June tics; (2) change of title of William Taylor from 12, 1987, approval of an amendment to Regula- Director to Staff Director, Banking Supervision tion Y implementing amendments to the Change and Regulation; (3) change of title of Edwin M. in Bank Control Act required by the Anti-Drug Truman from Director to Staff Director, Interna- Abuse Act of 1986. tional Finance; (4) transfer and title change of The Anti-Drug Abuse Act of 1986 amended the Donald L. Kohn from Deputy Staff Director in Change in Bank Control Act (CBCA) to require the Office of Staff Director for Monetary and federal banking agencies to publish notice of any Financial Policy to Deputy Director, Division of filing made under the CBCA to acquire control of Research and Statistics (Monetary Policy and a bank or a bank holding company. Financial Markets); and (5) transfer of Normand The Anti-Drug Abuse Act requires the banking R.V. Bernard to the Office of Board Members. agencies to publish the name of each party These assignments will result in the dissolution acquiring control of a bank or a bank holding of the Office of Staff Director for Monetary and company, as well as the name of the target Financial Policy. institution, and to solicit public comment on the proposed acquisition, in particular from persons The Board announced the following additional in the relevant local area. staff actions: James L. Kichline, Staff Director, Division of Research and Statistics, resigned, effective July PROPOSED ACTION 31, 1987. Lynn Smith Fox was appointed Special Assis- The Federal Reserve Board requested comment tant to the Board for Congressional Liaison in by July 6, 1987, on a revised proposal to charge the Office of Board Members, effective July 6, assessments and fees for certain supervisory 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 657 David L. Williams was appointed Assistant SYSTEM MEMBERSHIP. ADMISSION OF Director in the Division of Support Services, STATE BANKS effective July 6, 1987. Ms. Fox came to the Board in January 1986 The following banks were admitted to memberafter several years on the staff of the House ship in the Federal Reserve System during the Subcommittee on Economic Stabilization. She period June 1 through June 30, 1987: holds a B.A. from Smith College and an M.B.A. from George Washington University. Ohio Mr. Williams came to the Board in 1973 and Dayton Trustcorp Company was promoted to Assistant to the Director of the Virginia Division of Support Services in January 1987. Richlands First Virginia Bank—Clinch Valley Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

659 Legal Developments AMENDMENT TO REGULATION Y persons submitting a notice under this subpart of the date all such required information is received and The Board of Governors is amending its Regulation Y, the notice is accepted for processing. Bank Holding Companies and Change in Bank Con- (3) Publication. trol, to implement certain amendments to the Change (i) Newspaper announcement. A person(s) filing a in Bank Control Act. Under the final rule, notificants notice under this subpart shall publish, in a form under the Act are required to publish, in a newspaper prescribed by the Board, an announcement solicof general circulation in communities where the bank iting public comment on the proposed acquisition. or bank holding company to be acquired is located, an The announcement shall be published in a newsannouncement of the proposed acquisition no later paper of general circulation in the community in than 10 calendar days after the notice has been accept- which the head office of the state member bank to ed by the appropriate Federal Reserve Bank. be acquired is located or, in the case of a proposed Effective June 12, 1987, the Board amends acquisition of a bank holding company, in the 12 C.F.R. Part 225 as follows: community in which its head office is located and in the community in which the head office of each Part 225—Bank Holding Companies and of its subsidiary banks is located. The announce- Change in Bank Control ment shall be published no earlier than 10 calendar days prior to the filing of the notice with the 1. The authority citation for Part 225 continues to read appropriate Reserve Bank and no later than 10 as follows: calendar days after acceptance of the notice by the Reserve Bank. A copy of the announcement Authority: 12 U.S.C. 18170X13), 1818, 1843(c)(8), and the publisher's affidavit of publication shall be 1844(b), 3106, 3108, 3907 and 3909. provided to the appropriate Reserve Bank. (ii) Contents of newspaper announcement. The 2. Section 225.43(a) is revised to read as follows: newspaper announcement shall state: (A) the name of each person identified in the Section 225.43—Procedures for Filing, notice as a proposed acquiror of the bank or Processing, Publishing, and Acting on Notices bank holding company and the percentage of shares proposed to be acquired; (a)(1) Filing notice. A notice required under this (B) the name of the bank or bank holding subpart shall be filed with the appropriate Reserve company to be acquired, including, in the case Bank and shall contain the information required by of a bank holding company, the name of each of paragraph 6 of the Change in Bank Control Act its subsidiary banks; and (12 U.S.C. 1817(j)(6)), or prescribed in the designated (C) a statement that interested persons may Board form. With respect to personal financial state- submit comments on the notice to the Board or ments required by paragraph 6(B) of the Change in the appropriate Reserve Bank for a period of 20 Bank Control Act, an individual may include a days or such shorter period as may be provided statement of assets and liabilities as of a date within pursuant to paragraph (a)(3)(v) of this section. 90 days of filing the notice, a brief income summary, (iii) Federal Register announcement. The Board and a description of any subsequent material will, upon filing of a notice under this subpart, changes, subject to the authority of the Reserve publish announcement in the Federal Register of Bank or the Board to require additional information. receipt of the notice. The Federal Register an- (2) Acceptance of notice. The 60-day notice period nouncement will contain the information required specified in section 225.41 of this subpart shall under paragraphs (a)(3)(ii)(A) and (a)(3)(ii)(B) of commence on the date all required information is this section and a statement that interested perreceived by the appropriate Reserve Bank or the sons may submit comments on the proposed Board. The Reserve Bank shall notify the person or acquisition for a period of 15 days or such shorter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 Federal Reserve Bulletin • August 1987 period as may be provided pursuant to paragraph (B) any material information submitted is sub- (a)(3)(v) of this section. The Board may waive stantially inaccurate; publication in the Federal Register if the Board (C) it is unable to complete the investigation of determines that such action is appropriate. an acquiring person because of inadequate (iv) Delay of publication. The Board may permit cooperation or delay by that person; or delay in the publication required under para- (D) additional time is needed to investigate and graphs (a)(3)(i) and (a)(3)(iii) if the Board deter- determine that no acquiring person has a record mines, for good cause shown, that it is in the of failing to comply with the requirements of the public interest to grant such a delay. Requests for Bank Secrecy Act, subchapter II of Chapter 53 delay of publication may be submitted to the of Title 31, United States Code. appropriate Reserve Bank. (iii) If the Board extends the time period under (v) Shortening or waiving notice. In circum- this paragraph, it shall notify the acquiring perstances requiring prompt action, the Board may son^) of the reasons therefor and shall include a shorten the public comment period required under statement of the information, if any, deemed this paragraph. The Board may also waive the incomplete or inaccurate. newspaper publication and solicitation of public comment requirements of this paragraph, or it may act on a notice before the expiration of a 4. Section 225.43(d) is revised to read as follows: public comment period, if it certifies in writing that disclosure of the notice, solicitation of public comment, or delay until expiration of the public (d)(1) Investigation and report. After receiving a nocomment period would seriously threaten the tice under this subpart, the Board or the appropriate safety or soundness of the bank or bank holding Reserve Bank shall conduct an investigation of the company to be acquired. competence, experience, integrity, and financial (4) Consideration of public comments. In acting ability of each person by and for whom an acquisiupon a notice filed under this subpart, the Board tion is to be made. The Board shall also make an shall consider all public comments received in writ- independent determination of the accuracy and ing within the period specified in the newspaper or completeness of any information required to be Federal Register announcement, whichever is later. contained in a notice under paragraph (a) of this At the Board's option, comments received after this section. In investigating any notice accepted under period may, but need not, be considered. this subpart, the Board or Reserve Bank may solicit (5) Standing. No person (other than the acquiring information or views from any person, including any bank or bank holding company involved in the person) who submits comments or information on a notice, and any appropriate state, federal, or foreign notice filed under this subpart shall thereby become governmental authority. a party to the proceeding or acquire any standing or right to participate in the Board's consideration of (2) The Board or the appropriate Reserve Bank shall the notice or to appeal or otherwise contest the prepare a written report of its investigation, which notice or the Board's action regarding the notice. shall contain, at a minimum, a summary of the results of the investigation. 3. Section 225.43(c)(2) is revised to read as follows: Modification to Federal Reserve ACH Service (c) * * * The Board of Governors has modified the procedure (2) Extensions of time period. used by Federal Reserve Banks to recover the value of (i) The Board may extend the 60-day period in float generated in automated clearing house (ACH) paragraph (c)(1) of this section for an additional 30 operations due to nonstandard holiday closings by days by notifying the acquiring person(s). eliminating the exception procedure for institutions (ii) The Board may further extend the period that object to receiving debits on mandatory nonstanduring which it may disapprove a notice for two dard holidays. additional periods of not more than 45 days each if The Board's policy on float recovery procedures the Board determines that: used by Reserve Banks when processing ACH debits (A) any acquiring person has not furnished all on days when a receiving institution is closed due to a the information required under paragraph (a) of mandatory nonstandard holiday states that if a receivthis section; er of an ACH debit transaction is closed on a nonstan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 dard holiday, the Reserve Bank will debit the receiv- Bank is a state chartered, stock savings bank, the er's account as though the institution were open or accounts of which are insured by the Federal Savings assess the cost of the float through an explicit charge and Loan Insurance Corporation ("FSLIC"). Bank or an as-of adjustment. If, after consultation with its has adopted a plan by which it will withdraw its Reserve Bank, an institution still objects to receiving insurance of deposits from the FSLIC fund and condebits on mandatory nonstandard holidays, the Re- vert instead to Federal Deposit Insurance Corporation serve Bank will not charge the institution on such ("FDIC") insurance. days, but will use the preexisting procedures for Since Bank, at the time of acquisition by Applicant, recovering the ACH float that results. (Adopted by the will be a state chartered bank that accepts demand Board on June 12, 1986, 51 Fed. Reg. 21,421, effective deposits and makes commercial loans, Bank is a April 1, 1987). "bank" for purposes of the Act, and Applicant proper- On May 14, 1987, NACHA, the national trade ly has applied to acquire Bank under section 3 of the association for depository institutions participating in Act, which governs the acquisition of banks by bank the ACH service, adopted a rule requiring its member holding companies. institutions to accept debit charges to their reserve or Applicant, with deposits of $7 billion, is the second clearing accounts for debit transactions on nonstan- largest commercial banking organization in Connectidard holidays. Under Reserve Bank operating circu- cut, controlling 25.8 percent of the total deposits in lars, NACHA rules are incorporated by reference and commercial banks in the state.1 After conversion to therefore apply to all ACH participants. FDIC insurance, Bank will control deposits of $76.7 Because industry practice appears to call for pay- million, representing less than 1 percent of the total ment of ACH debit on mandatory nonstandard holi- deposits in commercial banking organizations in the days, the Board has determined to modify its policy to state.2 Upon consummation of this proposal, Appliconform with the rule adopted by NACHA. As a cant will continue to be the second largest commercial result, the exceptions procedure no longer applies. banking organization in Connecticut, with no signifi- Effective July 2, 1987. cant change in its market share or deposit size. Consummation of this proposal therefore would not have any significant adverse effect upon the concentration of banking resources in the state. ORDERS ISSUED UNDER BANK HOLDING Bank is located in the Hartford banking market, COMPANY ACT, BANK MERGER ACT, BANK where Applicant also competes.3 In the Hartford SERVICE CORPORATION ACT, AND FEDERAL banking market, Applicant is the second largest of 17 RESERVE ACT commercial banking organizations, controlling deposits of $2.5 billion, which represents 35.8 percent of Orders Issued Under Section 3 of the Bank total deposits in commercial banks in the market.4 Holding Company Act Upon conversion, Bank will be the 13th largest of 18 commercial banking organizations in Hartford, con- Hartford National Corporation trolling deposits of $48.5 million, representing less Hartford, Connecticut than 1 percent of the market share. Following acquisition of Bank, Applicant would remain the second Order Approving Acquisition of a Bank largest commercial banking organization in the Hartford banking market, controlling 36.5 percent of the Hartford National Corporation, Hartford, Connecticut, market's total commercial bank deposits. The Herfina bank holding company within the meaning of the Bank Holding Company Act ("Act"), 12 U.S.C. § 1841 et seq., has applied for the Board's approval under section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire the Savings and Loan Association of Southing- 1. State deposit data are as of December 31, 1986. ton, Southington, Connecticut ("Bank"). 2. Deposit data for Bank are calculated on a commercial banks only basis, based on financial information reported prior to Bank's conver- Notice of the application, affording interested persion. sons an opportunity to submit comments, has been 3. The Hartford banking market is approximated by the Hartford given in accordance with section 3(b) of the Act, 52 Rand McNally Area ("RMA"), minus the Windham County township of Windham and the Tolland County township of Mansfield, plus the Federal Register 7,487 (1987). The time for filing Windham County township of Ashford, the Hartford County township comments has expired, and the Board has considered of Hartland, the Tolland County township of Union, and the remaining portions of Plymouth and East Haddam not already included in the the application and all comments received in light of RMA. the factors set forth in section 3(c) of the Act. 4. Market data are as of June 30, 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 Federal Reserve Bulletin • August 1987 dahl-Hirschman Index ("HHI")5 would increase by consummated before the thirtieth calendar day followonly 8 points to 3079, and the market would remain ing the effective date of this Order, or later than three moderately concentrated. Consummation of this pro- months after the effective date of this Order, unless posal therefore is unlikely to substantially lessen com- such period is extended for good cause by the Board or petition in the Hartford banking market. by the Federal Reserve Bank of Boston, acting pursu- Based upon a review of all facts of record, the Board ant to delegated authority. has determined that the financial and managerial re- By order of the Board of Governors, effective sources of Applicant, its subsidiary banks and Bank June 1, 1987. are consistent with approval. Considerations relating to the convenience and needs of the communities to be Voting for this action: Chairman Volcker and Governors served also are consistent with approval of this pro- Johnson, Seger, Angell, Heller, and Kelley. posal. The Board notes that this application involves the WILLIAM W. WILES acquisition of a bank that results from conversion of a [SEAL] Secretary of the Board non-failing, FSLIC-insured state savings bank. The acquisition proposed here, however, does not fall within the scope of the Board's policy and rulings KeyCorp regarding acquisitions of thrift institutions under sec- Albany, New York tion 4 of the Act6 or the provisions of the 1982 Garn-St Germain Depository Institution Act regarding acquisi- Key Bancshares of New York, Inc. tions of thrift institutions. Upon its acquisition by Albany, New York Applicant, Bank will accept demand deposits and engage in commercial lending, and will be subject to all Order Approving Acquisition of a Bank the banking standards of the Act. In addition, the Board expects that Applicant will KeyCorp and Key Bancshares of New York, Inc. comply with all state and federal requirements neces- ("Key New York"), both of Albany, New York sary for consummation of the acquisition, and the ("Applicants"), bank holding companies within the Board's approval of this application under the Act is meaning of the Bank Holding Company Act not intended to preempt any such requirements.7 The (12 U.S.C. § 1841 et seq.) ("BHC Act") have applied Board has previously stated that its approval of trans- for the Board's approval under section 3(a)(3) of the actions under section 3 of the Act does not relieve an BHC Act, (12 U.S.C. § 1842(a)(3)), to acquire all of applicant or the bank involved of the responsibility to the voting shares of Key Bank USA, National Associobtain approval under other federal or state laws and ation, Albany, New York ("Bank"). regulations and does not shield an applicant from the Notice of the application, affording opportunity for consequences of violations of other laws.8 interested persons to submit comments, has been Based on the foregoing and other facts of record, the given in accordance with section 3(b) of the BHC Act Board has determined that the application should be, (52 Federal Register 6,218 (1987)). The time for filing and hereby is, approved. This transaction shall not be comments has expired and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the BHC Act (12 U.S.C. § 1842(c)). KeyCorp is the 59th largest commercial banking 5. Under the revised Department of Justice Merger Guidelines (49 organization in the United States, with 13 bank subsid- Federal Register 26,823 (June 29, 1984)), any market in which the iaries held through four intermediate bank holding post-merger HHI is over 1800 is considered highly concentrated, and the Department is likely to challenge a merger that increases the HHI companies in Maine, Alaska, Oregon and New York. by more than 50 points unless other factors indicate that the merger Key New York is the 12th largest commercial banking will not substantially lessen competition. The Department of Justice has informed the Board that a bank merger or acquisition generally organization in New York with 6 bank subsidiaries. will not be challenged (in the absence of other facts indicating an Key New York controls total deposits of $1.9 billion, anticompetitive effect) unless the post-merger HHI is at least 1800 and representing 2.1 percent of the total deposits in comthe merger increases the HHI by at least 200 points. mercial banking organizations in the state.1 6. D.H. Baldwin Company, 63 FEDERAL RESERVE BULLETIN 280 (1977). 7. The Board may not approve an application that would result in a violation of federal or state law. Whitney National Bank v. Bank of New Orleans, 379 U.S. 411 (1964). 8. The One Bancorp, 73 FEDERAL RESERVE BULLETIN 55, 135 (1987); SafraCorp, 73 FEDERAL RESERVE BULLETIN 137 (1987); Comerica Incorporated (Order dated May 4, 1987). 1. State deposit data are as of December 31, 1986. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 663 Bank is a newly chartered national bank formed to Based on the foregoing and other facts of record, the engage in traditional retail bank lending and deposit Board has determined that the application should be, taking activities.2 Bank will offer its services through and hereby is, approved. The transaction shall not be direct response marketing nationwide, by mail order consummated before the thirtieth calendar day followand by advertising in newspapers and magazines. ing the effective date of this Order or later than three Bank will direct its marketing efforts to customers in months after the effective date of this Order, unless geographic areas not served by Applicants' existing such period is extended for good cause by the Board or subsidiary banks. Consummation of the proposed the Federal Reserve Bank of New York, acting pursutransaction therefore would not result in any signifi- ant to delegated authority. cant adverse effects on existing or potential competi- By order of the Board of Governors, effective tion or increase the concentration of banking re- June 15, 1987. sources in any relevant area. The financial resources and future prospects of Voting for this action: Chairman Volcker and Governors Applicants, their subsidiary banks, and Bank are con- Johnson, Seger, Heller, and Kelley. Absent and not voting: sidered satisfactory and consistent with approval. Governor Angell. In its evaluation of Applicants' managerial resources, the Board has considered certain violations of JAMES MCAFEE the Currency and Foreign Transactions Reporting Act [SEAL] Associate Secretary of the Board ("CFTRA") and the regulations issued thereunder by Applicants' subsidiary banks.3 In this regard, the Board notes that Applicants brought these matters to the attention of appropriate supervisory authorities KeyCorp after CFTRA violations were discovered through an Albany, New York internal audit program. Applicants also have cooperated fully with the Department of Treasury and law Key Pacific Bancorp enforcement agencies throughout the investigative Anchorage, Alaska process. In addition, Applicants have undertaken a comprehensive remedial program to correct these vio- Order Approving Acquisition of a Bank lations and to prevent similar violations from occurring in the future. Specifically, Applicants each have KeyCorp, Albany, New York and Key Pacific Banfiled corrective currency transaction reports corp, Anchorage, Alaska ("Key Pacific") (together ("CTRs"); appointed a senior officer responsible for "Applicants"), bank holding companies within the ensuring compliance with CFTRA reporting require- meaning of the Bank Holding Company Act ments; instituted intensive internal training for bank (12 U.S.C. § 1841 et seq.) ("BHC Act") have applied personnel regarding compliance with the CFTRA; for the Board's approval under section 3(a)(3) of the established a new computer software system allowing BHC Act (12 U.S.C. § 1842(a)(3)), to acquire all of the for the centralization of exempt list computation and voting shares of Seattle Trust & Savings Bank, Seatthe monitoring of CTRs; and required all bank person- tle, Washington ("Bank"). nel to participate in CFTRA retraining courses at least Notice of the application, affording opportunity for once a year. Finally, Applicants have advised the interested persons to submit comments, has been Board that they have reached agreement with the given in accordance with section 3(b) of the Act (52 Department of Treasury on a settlement of all out- Federal Register 17,334 (1987)). The time for filing standing CFTRA violations. comments has expired, and the Board has considered Based on the foregoing and all of the facts of record, the application and all comments received in light of the Board concludes that the managerial resources of the factors set forth in section 3(c) of the BHC Act Applicants, their subsidiary banks, and Bank are con- (12 U.S.C. § 1842(c)). sistent with approval. Considerations related to the Applicants' proposal represents the first direct acconvenience and needs of the communities to be quisition of a Washington banking organization by an served also are consistent with approval. Alaska bank holding company; it also represents the first indirect acquisition by a New York bank holding company. The Board is prohibited under section 3(d) of the BHC Act, 12 U.S.C. § 1842(d) ("Douglas Amendment"), from approving any application by a 2. Bank received preliminary charter approval from the Office of bank holding company seeking to acquire a bank or the Comptroller of the Currency on February 11, 1987. bank holding company outside the applicant's home 3. 31 U.S.C. § 5311, et seq.; 31 C.F.R. § 103. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 Federal Reserve Bulletin • August 1987 state,1 unless the state where the target bank is located organizations in Alaska with two bank subsidiaries. has specifically authorized the acquisition, "by lan- Key Pacific controls total deposits of $502.5 million in guage to the effect and not merely by implication." Alaska, representing 12.4 percent of the total deposits KeyCorp's home state is New York and Key Pacific's in commercial banking organizations in the state.5 Key home state is Alaska. Pacific has one bank subsidiary in Oregon and is the Effective July 1, 1987, the statute laws of Washing- third largest of 54 commercial banking organizations in ton2 will allow an out-of-state bank holding company that state. Key Pacific controls total deposits of $885.7 to acquire a bank located in Washington if: million in Oregon, representing 6.1 percent of total (1) the bank or banking association to be acquired deposits in commercial banking organizations in the has conducted business for at least three years; state. Bank is the seventh largest of 89 commercial (2) the laws of the state where the bank holding banking institutions in Washington, controlling deposcompany acquiror principally conducts its opera- its of $666.8 million, representing 2.6 percent of the tions would allow a Washington bank holding com- total deposits in commercial banks in the state. Conpany to acquire more than 5 percent of the voting summation of this proposal therefore would not have a stock, or all or substantially all of the assets, of a significant effect upon the concentration of banking bank in that state and to operate the acquired bank resources in Alaska, New York or Washington. on no less favorable terms and conditions than are Applicants and Bank operate in different banking imposed under Washington law; and markets. Principals of Applicants are not affiliated (3) the state supervisor of banking has determined with any other depository organizations in any of that the laws of Washington and of the acquiring those markets. Applicants' proposal therefore would banking organization's home state are reciprocal. not result in any adverse effects upon competition in any relevant market. Accordingly, the Board con- Based on its review of the relevant Washington, cludes that competitive considerations under the BHC New York3, and Alaska4 statutes, the Board has Act are consistent with approval. determined that New York and Alaska laws would In its evaluation of Applicants' managerial repermit a Washington bank holding company to acquire sources, the Board has considered certain violations of a bank in those states. The Board therefore concludes the Currency and Foreign Transactions Reporting Act that the proposed acquisition satisfies the require- ("CFTRA") and the regulations issued thereunder by ments of Washington's interstate banking statute, and Applicants' subsidiary banks.6 In this regard, the that New York and Alaska holding companies, such as Board notes that Applicants brought these matters to Applicants, may acquire a bank located in Washing- the attention of appropriate supervisory authorities ton, such as Bank. In addition, by letter dated April 3, after CFTRA violations were discovered through an 1987, the Supervisor of Banking of the State of Wash- internal audit program. Applicants also have cooperatington has indicated that the requirements of Alaska ed fully with the Department of Treasury and law and New York interstate banking laws are reciprocal enforcement agencies throughout the investigative with those of Washington, and that Applicants' pro- process. In addition, Applicants have undertaken a posal would be authorized under Washington law. comprehensive remedial program to correct these vio- Accordingly, the Board concludes that approval of lations and to prevent similar violations from occur- Applicants' proposal to acquire Bank is not barred by ring in the future. Specifically, Applicants each have the Douglas Amendment. filed corrective currency transaction reports KeyCorp is the 59th largest commercial banking ("CTRs"); appointed a senior officer responsible for organization in the United States, with 13 bank subsid- ensuring compliance with CFTRA reporting requireiaries in Maine, Alaska, Oregon, and New York that ments; instituted intensive internal training for bank control $9.1 billion in deposits. Key Pacific is the personnel regarding compliance with the CFTRA; fourth largest of the thirteen commercial banking established a new computer software system allowing for the centralization of exempt list computation and the monitoring of CTRs; and required all bank personnel to participate in CFTRA retraining courses at least once a year. Finally, Applicants' have advised the Board that they have reached agreement with the 1. 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). 2. Revised Code of Washington §§ 30.04.232(b)dM3) (1987). 3. N.Y.S. Banking L. §§ 142-bl(a), (b) (1987). 5. State deposit data are as of December 31, 1986. 4. Alaska Statutes §§ 06.05.235(e)-(g) (1986). 6. 31 U.S.C. § 5311, et seq.\ 31 C.F.R. § 103. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 665 Department of Treasury on a settlement of all out- et seq.) ("Act"), has applied for the Board's approval standing CFTRA violations. under section 3 of the Act to acquire The Eastville For the foregoing reasons and based upon a review Bank, Eastville, Virginia ("Bank"). of all of the facts of record, the Board concludes that Notice of the application, affording an opportunity the managerial resources of Applicants are consistent for interested persons to submit comments, has been with approval. The Board also finds that the financial given in accordance with section 3(b) of the Act (52 resources of Applicants, their subsidiaries and Bank Federal Register 11,547 (1987)). The time for filing are consistent with approval of this application. Con- comments has expired, and the Board has considered siderations relating to the convenience and needs of the applications and all comments received in light of the communities to be served are also consistent with the factors set forth in section 3(c) of the Act. approval. Applicant is the fifth largest commercial banking Based on the foregoing and other facts of record, the organization in Maryland, controlling total deposits of Board has determined that this application should be $2.4 billion, representing 9.1 percent of the deposits in and hereby is approved.7 The transaction shall not be commercial banks in the state.1 Bank is among the consummated before the thirtieth calendar day follow- smaller commercial banking organizations in Virginia, ing the effective date of this Order, or later than three controlling total deposits of $18.5 million, representing months after the effective date of this Order, unless less than 1 percent of the deposits in commercial banks such period is extended by the Board or by the Federal in the state. Consummation of this proposal would not Reserve Bank of New York acting pursuant to delegat- have any significant effect upon the concentration of ed authority. banking resources in either Maryland or Virginia. By order of the Board of Governors, effective Section 3(d) of the Act, the Douglas Amendment, June 15, 1987. prohibits the Board from approving an application by a bank holding company to acquire a bank located Voting for this action: Chairman Volcker and Governors outside the bank holding company's home state, un- Johnson, Seger, Heller, and Kelley. Absent and not voting: less such acquisition is "specifically authorized by the Governor Angell. statute laws of the state in which such bank is located, by language to that effect and not merely by implication."2 JAMES MCAFEE [SEAL] Associate Secretary of the Board Applicant's home state is Maryland. The Commonwealth of Virginia has enacted an interstate banking statute that permits, on a reciprocal basis, the acquisi- Mercantile Bankshares Corporation tion of a bank in Virginia by a bank holding company Baltimore, Maryland that has its principal place of business located in a defined region, which includes the state of Maryland, Order Approving Acquisition of a Bank subject to the approval of the Virginia Commissioner of Financial Institutions.3 Maryland has enacted a Mercantile Bankshares Corporation, Baltimore, Mary- regional interstate banking statute similar to that of land, a bank holding company within the meaning of Virginia, which permits the acquisition of a Maryland the Bank Holding Company Act (12 U.S.C. § 1841 bank holding company or bank by an institution located in Virginia on a reciprocal basis. Upon its review of the relevant Virginia and Maryland statutes, the Board has determined that the 7. The National Association of Life Underwriters and the National Maryland statute satisfies the conditions of the Virgin- Association of Professional Insurance Agents submitted comments ia regional interstate banking statute and that Virginia protesting Board approval of this application on the grounds that the general insurance agency activities conducted by a department of has by statute expressly authorized a Maryland bank Bank are prohibited under the amendments to section 4 of the BHC Act contained in the 1982 Garn-St Germain Depository Institutions Act. In response to these protests, Applicants have agreed that Bank will divest or terminate its general insurance agency activities within two years of consummation of the acquisition, unless during such period Applicants receive approval pursuant to an application under section 4(c)(8) of the BHC Act to retain such activities. During this 1. Deposit data are as of June 30, 1986. two-year period or unless authorization is granted pursuant to the 2. A bank holding company's home state for purposes of the BHC Act for broader activities, Applicants will limit the insurance Douglas Amendment is that state in which the total deposits of its agency activities of Bank to the renewal of existing policies and those banking subsidiaries were largest on July 1, 1966, or on the date it credit-related insurance agency activities permitted under section became a bank holding company, whichever date is later. 12 U.S.C. 4(c)(8)(A) of the BHC Act. The Board believes that Applicants' § 1842. divestiture commitments adequately address the issues raised by 3. Va. Code Ann. § 6.1-399 (Supp. 1986); Md. Ann. Code art. 5, these protestants. § 1003 (1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 Federal Reserve Bulletin • August 1987 holding company, such as Applicant, to acquire a and hereby is, approved. The acquisition of Bank shall Virginia bank or bank holding company, such as not be consummated before the thirtieth calendar day Bank.4 Moreover, the banking commissioners for following the effective date of this Order, or later than Maryland and Virginia have executed a cooperative three months after the effective date of this Order, agreement for access to records, examinations, and unless such period is extended for good cause by the other information relating to state-chartered banks, Board or by the Federal Reserve Bank of Richmond based on a finding of general reciprocity between the pursuant to delegated authority. two statutes. Accordingly, based on the above factors, By order of the Board of Governors, effective the Board concludes that the Douglas Amendment June 10, 1987. does not prohibit Board approval of this proposal. The Board's Order is specifically conditioned upon ap- Voting for this action: Vice Chairman Johnson and Goverproval of the transaction by the Virginia Commission- nors Seger, Heller, and Kelley. Absent and not voting: er of Financial Institutions. Chairman Volcker and Governor Angell. Applicant and Bank currently operate in different banking markets. Principals of Applicant are not affili- JAMES MCAFEE ated with any depository institution in the market in [SEAL] Associate Secretary of the Board which Bank operates. The proposal would not result in any adverse effects upon competition in any relevant market. Accordingly, the Board concludes that com- NCNB Corporation petitive considerations under the Act are consistent Charlotte, North Carolina with approval. In its evaluation of Applicant's managerial re- Order Approving Acquisition of a Bank sources, the Board has considered certain violations by Applicant's subsidiary banks of the Currency and NCNB Corporation, Charlotte, North Carolina, has Foreign Transactions Reporting Act ("CFTRA") and applied for the Board's approval pursuant to section the regulations thereunder.5 The violations appear to 3(a)(3) of the Bank Holding Company Act (12 U.S.C. have been limited in scope, and Applicant has taken § 1841 et seq.) (the "Act") to acquire NCNB Bank of appropriate remedial action to correct such violations Maryland, Baltimore, Maryland ("NCNB Bank"), a and prevent their reoccurrence. The sufficiency of the de novo Maryland-chartered trust company. NCNB compliance procedures adopted to address the Bank is a nonoperating subsidiary that will be merged CFTRA violations at Applicant's subsidiary banks has with CentraBank, Inc., Baltimore, Maryland, a Marybeen reviewed by examiners from the appropriate land-chartered FDIC-insured mutual savings bank. regulatory authorities. The Board also has consulted The resulting bank will be an FDIC-insured state with appropriate enforcement agencies, and has con- bank,1 operating under NCNB Bank's charter with the sidered the banks' past record of overall compliance name CentraBank. with the law, as well as Applicant's stated commit- Notice of the application, affording opportunity for ments and programs to comply with CFTRA in the interested persons to submit comments, has been future. For the foregoing reasons, and based upon a published (52 Federal Register 10,162 (1987)). The review of all the facts of record, the Board finds the time for filing comments has expired, and the Board managerial resources of Applicant and Bank to be has considered all comments received in light of the consistent with approval. factors set forth in section 3(c) of the Act. The financial resources and future prospects of Applicant is the largest commercial banking organi- Applicant and Bank are considered satisfactory and zation in North Carolina, with deposits of $7.7 billion, consistent with approval. Considerations relating to representing 22.2 percent of the total deposits in the convenience and needs of the community to be commercial banks in the state.2 Applicant also operserved are also consistent with approval. ates banks in Florida, Georgia, South Carolina, and Based on the foregoing and other facts of record, the Virginia. On a consolidated basis, Applicant controls Board has determined that the application should be, deposits of $18.6 billion. 4. In that regard, the Board previously has determined that the Maryland and Virginia statutes are reciprocal in the course of its approval of the acquisition by a Virginia bank holding company of a 1. NCNB Bank filed an application to merge with CentraBank with Maryland bank. Bank of Virginia Company, 72 FEDERAL RESERVE the FDIC on March 20, 1987. BULLETIN 65 (1986). 2. Deposit data are as of December 31, 1986. Structure data are as 5. 31 U.S.C. § 5311 et seq.; 31 C.F.R. § 103. of June 30, 1986. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 667 CentraBank is the 18th largest commercial bank in The financial and managerial resources of Appli- Maryland, with deposits of $226.6 million, represent- cant, its subsidiary banks, and CentraBank are considing 0.8 percent of total deposits in commercial banks in ered satisfactory and consistent with approval of this Maryland. Because Applicant does not operate a bank application. In considering the convenience and needs in Maryland, consummation of this proposal would of the communities to be served, the Board has taken have no effect on the concentration of resources in into account Applicant's record under the Community Maryland. Reinvestment Act (12 U.S.C. § 2901 et seq., Section 3(d) of the Act (12 U.S.C. § 1842(d)), the ("CRA")),7 and comments received from the Mary- Douglas Amendment, prohibits the Board from ap- land Alliance for Responsible Investment ("MARI"), proving an application by a bank holding company to a coalition of non-profit developers and other commuacquire control of any bank located outside of the bank nity-based organizations representing Baltimore's holding company's home state unless the acquisition is low-income and minority neighborhoods.8 MARI re- "specifically authorized by the statute laws of the quests that the Board not approve the application until state in which such bank is located, by language to that Applicant provides adequate assurances that it will effect and not merely by implication."3 meet the convenience and needs of the low- and Applicant's home state is North Carolina. The stat- moderate-income persons, and minorities, that CentraBank currently serves. MARI also requests that the ute laws of Maryland authorize the acquisition of a Board deny the application because Applicant's lendbank or bank holding company in Maryland by a bank ing practices are not consistent with safe and sound holding company located in another state in a defined banking practices. region, which includes North Carolina as of July 1, 1987, if the laws of that state permit Maryland bank In accordance with the Board's practice and proceholding companies to acquire banks and bank holding dure for handling protested applications,9 the Federal companies in that state.4 North Carolina has enacted a Reserve Bank of Richmond assisted in arranging sevsimilar regional interstate banking statute that permits eral meetings between the parties to clarify the issues the acquisition of a North Carolina bank holding under the CRA and to provide a forum for resolution company or bank by an institution located in Mary- of differences. The parties, however, were unable to land.5 come to a resolution of their differences. The Maryland Bank Commissioner has informed the In response to MARI's comments, the Board notes Board that the proposal appears to meet the require- that both Applicant and CentraBank have satisfactory ments under Maryland law, and, accordingly, the CRA records. Moreover, Applicant has developed a Commissioner anticipates approving the acquisition. comprehensive corporate CRA policy for Maryland in Based on the foregoing, the Board has determined that which Applicant has committed to: the proposed acquisition is specifically authorized by (1) name a Community Affairs Officer for Maryland the statute laws of Maryland and thus is not prohibited who will meet with community organizations, beby the Douglas Amendment. The Board's order is come familiar with available financing programs, specifically conditioned upon satisfaction of the state and work with CentraBank's branch manager, offiregulatory approval requirement and the effective date cers, and personnel to meet CRA goals; of the provision of Maryland law that includes North (2) determine and monitor community needs Carolina within the region. through study of selected low- and moderate-income CentraBank operates in the Baltimore banking mar- areas and meetings with community groups; ket,6 a market in which Applicant does not operate. (3) use its best efforts to inform the community of its Accordingly, consummation of the proposal is not services through marketing and advertising, with likely to result in the elimination of any significant programs specially directed at targeted areas;10 existing competition. In view of the numerous entrants into the market, the Board concludes that the proposal would not have any significant adverse effect on probable future competition. 7. The CRA requires the Board, in its evaluation of a bank holding company application, to assess the record of an applicant in meeting the credit needs of the entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operation. 3. A bank holding company's home state is the state in which the 8. Although MARI's protest was not received within the time limits operations of the bank holding company's subsidiary banks were set forth by the Board, the Board has considered these comments in principally conducted on July 1, 1966, or on the date on which the reviewing this application. company became a bank holding company, whichever is later. 9. See 12 C.F.R. § 262.25(c). 4. Md. Fin. Inst. Code Ann. § 5-1001 et seq. (1986). 10. These areas are census tracts within the community served by 5. N.C. Gen. Stat. § 53-209 et seq. (1985). CentraBank having a median household income equal to or less than 6. The Baltimore banking market is approximated by the Baltimore 80% of the median household income of the MSA within which the RMA and the remainder of Harford County, Maryland. census tracts are located. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 Federal Reserve Bulletin • August 1987 (4) endeavor to use flexibility in applying credit sales of noncredit-related insurance to CentraBank's criteria, consistent with safe and sound banking customers, and will limit its insurance activities to practices, and meet with community groups in order those credit-related insurance activities permitted unto obtain input from such groups as to flexible der section 4(c)(8)(A) of the Act. Applicant's remainstandards as well as to keep such groups informed of ing insurance activity, the sale to CentraBank and its lending criteria; affiliates of insurance required for their operation, is a (5) seek to provide counseling and technical assis- permissible servicing activity under sections 4(a)(2)(A) tance to governmental and private community- and 4(c)(1)(C) of the Act, and section 225.22(a)(2)(ix) based agencies working within the targeted areas; of the Board's Regulation Y. The Board previously (6) develop basic banking services such as a pro- has determined that the prohibition on insurance activgram to cash government checks and a regular ities now contained in section 4(c)(8) of the Act as a checking account service at reduced maintenance result of the Garn Act has no bearing on the internal fees; and operations of a bank holding company (49 Federal (7) devote special elfort to providing housing, small Register 808 (1984)). Accordingly, the Board conbusiness, and economic development loans to tar- cludes that CentraBank's credit-related insurance acgeted areas. tivities and servicing activities are consistent with the Act.12 In addition, Applicant has stated it will make a good CentraBank also currently engages, through a partfaith effort to provide at least $2 million in home nership, in real estate investment activities.13 Applimortgage and home improvement loans as well as $1 cant has committed that, upon consummation, Centramillion in small business loans in low- and moderate- Bank will not engage, directly or indirectly, in any real income areas. estate investment activities impermissible under the Based on the above and all the facts of record, and Act, except to complete its existing project. Applicant after taking into account Applicant's commitments to has committed to complete this project and divest of it enhance CentraBank's service to meet the conve- within two years of consummation of the proposal. nience and needs of its community, including low- and Based on the foregoing and other facts of record, moderate-income segments, the Board concludes that including the commitments made by Applicant, the convenience and needs considerations are consistent Board has determined that the application under secwith approval of this application.11 tion 3 of the Act should be and hereby is approved. CentraBank currently engages, through a wholly The acquisition of NCNB Bank shall not be consumowned subsidiary, in the sale of both credit-related and mated before the thirtieth calendar day following the noncredit-related insurance to CentraBank's custom- effective date of this Order, or later than 90 days after ers and the sale to CentraBank and its affiliates of the effective date of this Order, unless such period is insurance required for their operations. The National extended for good cause by the Board or by the Association of Life Underwriters and the National Federal Reserve Bank of Richmond, pursuant to dele- Association of Professional Insurance Agents submit- gated authority. ted comments protesting the application on the By order of the Board of Governors, effective grounds that the activities conducted by CentraBank June 1, 1987. are prohibited under the amendments to section 4 of the Act contained in the 1982 Garn-St Germain Depos- Voting for this action: Chairman Volcker and Governors itory Institutions Act ("Garn Act"). Johnson, Seger, Angell, Heller, and Kelley. In response to the protest, Applicant has committed that, upon consummation, CentraBank will cease all JAMES MCAFEE [SEAL] Associate Secretary of the Board 11. MARI also requested that the Board deny this application because of Applicant's lending practices to third world nations, especially South Africa. Applicant is in compliance with all federal 12. The Independent Insurance Agents of America, Inc., the Nalaws regarding its lending activities to South Africa. In addition, as tional Association of Casualty and Surety Agents, and the National noted above, the Board believes that Applicant's financial condition is Association of Surety Bond Producers submitted comments stating consistent with approval of this application. that, in light of Applicant's commitment to terminate noncredit- MARI has also requested that the Board order a public meeting to related insurance sales, they did not oppose Applicant's continuation receive public testimony on the issues presented by this application. of credit-related insurance sales permissible under section 4(c)(8)(A) Although section 3(b) of the Act does not require a formal hearing in of the Act and insurance activities required for the operation of this instance, the Board may, in any case, order a formal or informal CentraBank and its affiliates. hearing. In the Board's view, the parties have had ample opportunity 13. The Maryland Bank Commissioner has questioned the legality to present their arguments in writing and to respond to one another's of this investment under state law and has requested the advice of the submissions. In light of these facts, the proposals by Applicant to Maryland Attorney General on the issue. The Attorney General has expand its services, and other facts of record, the Board has deter- not provided an opinion yet. Applicant has committed to conform its mined that a hearing would serve no useful purpose. Accordingly, investment to the terms of the opinion within a reasonable period of MARI's request for a public hearing is hereby denied. time following receipt of the opinion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 669 Orders Issued Under Section 4 of the Bank Section 4(c)(8) of the BHC Act (12 U.S.C. Holding Company Act § 1843(c)(8)) authorizes a bank holding company to engage in nonbanking activities and acquire shares of a Citicorp nonbanking company that engages in activities deter- New York, New York mined by the Board to be "so closely related to banking or managing or controlling banks as to be a Order Approving Purchase of Certain Assets and proper incident thereto." The Board previously has Assumption of Certain Liabilities of a Savings and determined that the operation of a thrift institution is Loan Association closely related to banking.3 With respect to the "proper incident" requirement, Citicorp, New York, New York, a bank holding com- section 4(c)(8) of the BHC Act requires the Board to pany within the meaning of the Bank Holding Compa- consider whether the performance of the activity by an ny Act (12 U.S.C. § 1841 et seq.) (the "BHC Act"), affiliate of a holding company "can reasonably be has applied for the Board's approval under section expected to produce benefits to the public, such as 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)), for its greater convenience, increased competition, or gains subsidiary, Citicorp Savings, a Federal Savings and in efficiency that outweigh possible adverse effects, Loan Association, Oakland, California ("Citicorp such as undue concentration of resources, decreased Savings"), to purchase certain assets and assume or unfair competition, conflicts of interests, or uncertain liabilities of 50 branch offices of Sears Savings sound banking practices." Bank, Glendale, California ("Sears Savings"). In 1977, the Board determined that, as a general Notice of the application, affording opportunity for matter, the operation of an S&L was not a proper interested persons to submit comments, has been incident to banking because the potential adverse published (52 Federal Register 12,252 (1987)). The effects of generally allowing affiliations of banks and time for filing comments has expired, and the Board S&Ls were then sufficiently strong to outweigh any has considered the application and all comments re- public benefits that might result from individual casceived in light of the factors set forth in section 4(c)(8) es.4 In evaluating this application, the Board has of the BHC Act. considered whether Citicorp's proposal involves the Citicorp, with total consolidated assets of $196.1 acquisition of an existing, healthy S&L, thus requiring billion, is the largest banking organization in the the Board to reconsider its D.H. Baldwin decision that United States.1 Citicorp controls nine subsidiary the acquisition of a healthy thrift is not generally a banks and engages in numerous nonbanking activities, proper incident to banking, or whether the proposal including the operation of savings and loan associa- represents merely the permissible acquisition of certions in California, Washington, D.C., Florida, and tain assets and the assumption of certain liabilities of Illinois. S&L branches. Citicorp Savings is a federally chartered, FSLIC- Based upon its review of the record, the Board has insured savings and loan association ("S&L"), which concluded that Citicorp's proposal properly may be is the successor to the failed Fidelity Savings & Loan viewed as the permissible acquisition of certain assets Association.2 Citicorp Savings has total assets of $4.9 and liabilities of S&L branches rather than the acquisibillion and operates 86 branches in California, primari- tion of an S&L. The acquisition here involves less than ly in the northern part of the state. one-third of Sears Savings' assets and liabilities, and Sears Savings is a California-chartered, FSLIC- Sears Savings will not be eliminated as a competitor in insured S&L and a wholly owned subsidiary of Sears any relevant market.5 This proposal also is consistent Roebuck & Co., Chicago, Illinois. Sears Savings has 91 branches in California, predominantly in the south- 3. See, e.g., D.H. Baldwin Company, 63 FEDERAL RESERVE BULern part of the state, and $6.6 billion in total assets. LETIN 280 (1977); Interstate Financial Corp., 68 FEDERAL RESERVE BULLETIN 316 (1982). Citicorp Savings proposes to assume approximately 4. D.H. Baldwin Company, 63 FEDERAL RESERVE BULLETIN 280 $2 billion of deposits and other liabilities and to (1977). While the Board has not permitted bank holding companies to acquire thrift institutions on a general basis, the Board has consistentpurchase approximately $1.9 billion in tangible assets ly regarded the BHC Act as authorizing it to permit such an acquisiof 50 branch offices of Sears Savings. tion and has approved several such proposals involving failing thrift institutions on the basis that any adverse effects would be overcome by the public benefits of preserving the failing thrift institutions. See, e.g., F.N.B. Corporation, 71 FEDERAL RESERVE BULLETIN 340 (1985); The Chase Manhattan Corporation, 71 FEDERAL RESERVE BULLETIN 462 (1985). 1. Banking data are as of December 31, 1986, unless otherwise 5. These factors distinguish this case from the Board's decision in specified. Old Stone Corporation (Catawba), 70 FEDERAL RESERVE BULLETIN 2. The acquisition of Citicorp Savings was approved by the Board 593 (1984). In that case, the Board denied a proposal by a bank holding by Order of September 28, 1982. Citicorp (Fidelity), 68 FEDERAL company to acquire through an existing S&L subsidiary, all of the RESERVE BULLETIN 656 (1982). assets and liabilities of a healthy S&L. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 Federal Reserve Bulletin • August 1987 with the branching restrictions in the Board's Order maintain a strong capital position substantially above allowing the initial acquisition of Citicorp Savings, the minimum levels specified in the Capital Adequacy since the branches to be acquired are all at locations at Guidelines without significant reliance on intangibles, which a state or national bank in California may particularly goodwill.9 The Board will carefully anaestablish a branch.6 lyze the effect of expansion proposals on the preserva- Citicorp Savings is the 21st largest depository insti- tion or achievement of such capital positions. tution among commercial banking organizations and The Board has reviewed this case in the light of S&Ls in California, with total deposits of $2.9 billion, Applicant's capital and asset position. In approving representing less than 1 percent of the total deposits in this application, the Board has relied on the assurcommercial banks and thrifts in the state. Upon con- ances of Applicant that it plans to strengthen its capital summation of the proposal, Citicorp Savings would base in the near term, and the Board intends to become the 15th largest depository institution among monitor progress toward this objective. Accordingly, commercial banking organizations and S&Ls in Cali- on the basis of the above considerations, the Board fornia, and the ninth largest S&L in California, con- concludes that financial factors are consistent with trolling 1.4 percent of the total deposits in commercial approval of the application. Managerial factors and banks and thrifts in the state. Accordingly, the Board convenience and needs also are consistent with apconcludes that consummation of this proposal would proval. not have a significant adverse effect on the concentra- The Board also concludes that consummation of the tion of commercial bank and thrift institution re- proposal will not result in conflicts of interests, unsources. sound banking practices, undue concentration of re- Citicorp Savings and Sears Savings compete for sources, or other adverse effects. S&L services in the Los Angeles, San Francisco- Based upon the foregoing and all the facts of record, Oakland-San Jose, and San Diego markets.7 Upon the Board has determined that the balance of public consummation of the proposal, Citicorp Savings' mar- interest factors it is required to consider under section ket share would be less than 5 percent (based on 4(c)(8) of the BHC Act is favorable. Accordingly, the deposits in commercial banks and thrifts) in each of application is hereby approved. This determination is the markets, and the increase in concentration in the subject to the conditions set forth in sections 225.4(d) markets would not be substantial. Accordingly, the and 225.23(b)(3) of the Board's Regulation Y, Board concludes that consummation of this proposal 12 C.F.R. § 225.4(d) and 225.23(b)(3). The approval is will not have a significant adverse effect on existing also subject to the Board's authority to require modificompetition in any relevant market. The Board also cation or termination of the activities of the holding concludes that the proposal would not have any signif- company or any of its subsidiaries as the Board finds icant adverse effect on probable future competition. necessary to assure compliance with the provisions In evaluating this application, the Board has consid- and purposes of the BHC Act and the Board's regulaered the financial resources of Applicant and the effect tions and orders issued thereunder, or to prevent on these resources of the proposed acquisition. The evasion thereof. Board has stated and continues to believe that capital This transaction shall not be consummated later adequacy is an especially important factor in the than three months after the effective date of this analysis of bank holding company proposals, particu- Order, unless such period is extended for good cause larly in transactions where a significant acquisition is by the Board, or by the Federal Reserve Bank of New proposed.8 York, pursuant to delegated authority. In this regard, the Board expects that banking By order of the Board of Governors, effective organizations experiencing substantial growth inter- June 29, 1987. nally and by acquisition, such as Applicant, should Voting for this action: Chairman Volcker and Governors Seger, Angell, and Kelley. Absent and not voting: Governors Johnson and Heller. 6. The proposal also is consistent with the principles underlying the branching restrictions of the emergency thrift acquisition provisions of JAMES MCAFEE the Garn-St Germain Depository Institutions Act of 1982. (12 U.S.C. [SEAL] Associate Secretary of the Board § 1730a(m)(5)). 7. The Los Angeles market is approximated by the Los Angeles RMA. The San Francisco-Oakland-San Jose market is approximated by the San Francisco-Oakland-San Jose RMA. The San Diego market is approximated by the San Diego RMA. Market data are as of June 30, 1985. 9. Capital Adequacy Guidelines, 50 Federal Register 16,057 8. See e.g., Chase Manhattan Corporation, 70 FEDERAL RESERVE 16,066-67 (April 24, 1985) (71 FEDERAL RESERVE BULLETIN 445 BULLETIN 529 (1984); NCNB Corporation, 69 FEDERAL RESERVE (1985)); National City Corporation, 70 FEDERAL RESERVE BULLETIN BULLETIN 49 (1983). 743, 746 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 671 Security Pacific Corporation acquisition as raising any significant competitive Los Angeles, California issues. Consummation of the proposal will provide public Order Approving an Application to provide Asset- benefits in the form of increased commercial finance Based Credit Facilities to Commercial Borrowers services to the market currently served by Company. Company's parent, Wells Fargo & Company, San Security Pacific Corporation, Los Angeles, California, Francisco, California, has made a corporate decision a bank holding company within the meaning of the to withdraw from the commercial finance business. Bank Holding Company Act (12 U.S.C. § 1841 et seq.) Applicant's acquisition of Company will preserve a (the "Act"), has applied for the Board's approval, competitor in the market and Applicant will provide pursuant to section 4(c)(8) of the Act (12 U.S.C. the financial and managerial resources to support the § 1843 (c)(8)), to acquire substantially all of the assets continued operation of Company. of Wells Fargo Business Credit, Inc., Dallas, Texas In evaluating this application, the Board also has ("Company"). considered the financial resources of Applicant and Notice of the application, affording interested per- the effect on those resources of the proposed acquisisons an opportunity to submit comments, has been tion. In this regard, the Board has previously expublished (52 Federal Register 10,632 (1987)). The pressed concern that expansionary proposals should time for filing comments has expired, and the Board be based on the maintenance of an adequate tangible has considered the application and all comments re- primary capital position. In connection with an earlier ceived in light of the public interest factors set forth in acquisition which had the effect of decreasing Applisection 4(c)(8) of the Act. cant's tangible primary capital,2 Applicant expressed Applicant is a multibank holding company with six its intention to restore its tangible primary capital ratio subsidiary banks in California, Arizona, Washington, to pre-acquisition levels and to continue to strengthen and Oregon, controlling $31 billion in domestic depos- its capital position. In this case, the proposal would its.1 Applicant also engages through subsidiaries in involve only a negligible reduction in Applicant's various nonbanking activities. tangible primary capital ratio, and should not have any Company engages in providing asset-based credit material effect on applicant's ability to meet its stated facilities to commercial borrowers nationwide, includ- capital goals. Based on the above facts, particularly ing accounts receivable, inventory, capital equipment, Applicant's plans to continue to strengthen its primary and leveraged buyout/merger financing. This activity capital position, the Board concludes that the financial and managerial resources of Applicant are consistent is permissible under Regulation Y (12 C.F.R. with approval. § 225.25(b)(l)(iv)). In order to approve this application, the Board must There is no evidence in the record to indicate that also find that the performance of the proposed activity consummation of the proposal would lead to any can reasonably be expected to produce benefits to the undue concentration of resources, decreased or unfair public, such as greater convenience, increased compe- competition, unsound banking practices, or other adtition, or gains in efficiency, that outweigh possible verse effects. Based on the foregoing and all the facts adverse effects, such as undue concentration of re- of record, the Board has determined that the balance sources, decreased or unfair competition, conflicts of of public interest factors it is required to consider interest, or unsound banking practices. Both Appli- under section 4(c)(8) is favorable. Accordingly, the cant and Company engage in commercial finance application is hereby approved. This determination is nationwide, and therefore, some existing competition subject to the conditions set forth in sections 225.4(d) would be eliminated as a result of consummation of the and 225.23(b)(3) of the Board's Regulation Y, proposal. The combined market share resulting from 12 C.F.R. §§ 225.4(d) and 225.23(b)(3). The approval the acquisition, however, would be approximately 3 is also subject to the Board's authority to require percent. In addition, given the large number of alterna- modification or termination of the activities of the tive participants providing similar services, no appre- holding company or any of its subsidiaries as the ciable amount of potential or probable future competi- Board finds necessary to assure compliance with the tion would be eliminated by the proposal. provisions and purposes of the Act and the Board's Accordingly, the Board does not regard the proposed regulations and orders issued thereunder, or to prevent evasion thereof. This transaction shall not be 2. Security Pacific Corporation, 72 FEDERAL RESERVE BULLETIN 1. Data are as of March 31, 1987. 800 (1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 Federal Reserve Bulletin • August 1987 consummated later than three months after the effec- agency under the BHC Act on the basis of section tive date of this Order, unless such period is extended 225.22(d)(2) of the Board's Regulation Y. That regulafor good cause by the Board or by the Federal Reserve tion allows a state bank owned by a bank holding Bank of San Francisco, pursuant to delegated author- company to acquire and retain all of the voting shares ity. of company that engages in activities the parent state By order of the Board of Governors, effective bank may conduct directly. 12 C.F.R. § 225.22(d)(2). June 29, 1987. Sovran's application to acquire Suburban Bancorp was protested by various insurance industry trade Voting for this action: Chairman Volcker and Governors groups on the ground that Suburban Insurance's activ- Seger, Angell, and Kelley. Absent and not voting: Governors ities are prohibited under Title VI of the Garn-St Johnson and Heller. Germain Depository Institutions Act of 1982. The Garn-St Germain Act amended section 4 of the BHC Act to provide that, with seven specific exceptions, JAMES MCAFEE [SEAL] Associate Secretary of the Board insurance activities are not closely related to banking and thus are not generally permissible for bank holding companies.2 Sovran Financial Corporation The Board's February 27, 1986, Order approving Norfolk, Virginia Sovran's acquisition of Suburban Bancorp did not resolve this issue. In response to the protests, Sovran Order Approving Retention Shares of an Insurance committed that if its acquisition of Suburban Bank Agency were approved, Suburban Insurance would, upon its acquisition by Sovran, cease writing new policies until Sovran Financial Corporation, Norfolk, Virginia the Board acted to resolve the legal questions raised ("Sovran"), a bank holding company within the mean- by its insurance activities. On the basis of this commiting of the Bank Holding Company Act (12 U.S.C. ment, the acquisition was consummated on March 31, § 1841 et seq.) (the "BHC Act"), has applied for the 1986.3 Board's approval under section 4(c)(8)(D) of the BHC On November 11, 1986, Sovran filed the present Act and section 225.25(b)(8)(iv) of Regualtion Y application claiming entitlement to retain indirect con- (12 C.F.R. § 225.25(b)(8)(iv)), to retain indirectly all of trol over Suburban Insurance pursuant to section the voting shares of Sovran Insurance, Inc., a compa- 4(c)(8)(D) of the BHC Act, the grandfather provision ny that engages in general insurance agency activities, of the Garn-St Germain Act (hereinafter "exempincluding the sale of life and property and casualty tion D"). This section provides an exception to the insurance to the general public. general insurance prohibition of the Garn-St Germain Applicant has total consolidated assets of approxi- Act for any insurance agency activity which was mately $14.6 billion and controls banks in Maryland, engaged in by a bank holding company or any of its Virginia and the District of Columbia.1 Applicant also subsidiaries on May 1, 1982, subject to certain geoengages through certain subsidiaries in a variety of graphic and functional limitations.4 nonbanking activities permissible for bank holding Notice of the application, affording interested percompanies. sons an opportunity to submit comments on the pro- On February 27, 1986, the Board approved an posal, has been published in the Federal Register. (51 application under the BHC Act by Sovran to acquire Federal Register 42,138 (1986)). The time for filing Suburban Bancorp, Bethesda, Maryland, and its subsidiary bank, Suburban Bank. Suburban Bank, since 1964, has controlled, pursuant to Maryland law, Sub- 2. On October 3, 1986, the Board amended Regulation Y to include urban Insurance, Inc. (now renamed Sovran Insur- in the list of activities that the Board has found to be closely related to ance, Inc.), which engages in general insurance agency banking within the meaning of section 4(c)(8) of the Act and thus permissible for bank holding companies, the insurance agency activiactivities. Suburban Bancorp, which became a bank ties delineated in the seven exemptions to the Garn-St Germain Act. holding company in 1972 through acquisition of Subur- 51 Federal Register 36,201 (1986), to be codified at 12 C.F.R. ban Bank, has since that time claimed entitlement to § 225.25(b)(8). retain indirect ownership and control of the insurance 3. 72 FEDERAL RESERVE BULLETIN 347 (1986). 4. Exemption D restricts grandfathered insurance activities to the state in which the grandfathered bank holding company has its principal place of business, any state immediately adjacent to that state, and any state or states in which insurance activities were conducted by the bank holding company or any of its subsidiaries on May 1, 1982, or were approved to be conducted by the bank holding company or any of its subsidiaries on or before May 1, 1982. 1. Banking data are as of March 31, 1987. 12 U.S.C. § 1843(c)(8)(D) and 12 C.F.R. § 225.25(b)(8)(iv). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 673 comments has expired, and the Board has considered After considering the arguments of the Applicant the application and all comments received in light of and Protestants, as well as the views of the Maryland the factors set forth in section 4 of the BHC Act.5 Bank Commissioner and the Maryland Insurance Protestants assert that the Board should not approve Commissioner, the Board has determined that Suburthe application because Suburban Bank is prohibited ban Bancorp is entitled to retain indirect ownership by Maryland law from engaging directly in general and control of Suburban Insurance under exemption D insurance agency activities and thus, under section and section 225.25(b)(8)(iv) of Regulation Y and that 225.22(d)(2) of the Board's Regulation Y, could not this entitlement does not terminate upon Suburban acquire or retain control of a company engaged in Bancorp's acquisition by Sovran. With regard to Apthese activities. On this basis, Protestants claim Sub- plicant's contention regarding the applicability of securban Insurance was not lawfully held by Suburban tion 4 of the BHC Act to nonbanking companies Bancorp under the BHC Act or Regulation Y on May controlled by holding company banks, the Board has 1, 1982, the grandfather date under exemption D, and previously determined that under the specific terms of thus Suburban Insurance does not qualify for grandfa- the BHC Act, the acquisition and retention by holding ther privileges under exemption D. Protestants also company banks of voting shares of nonbanking comcontend that, even if Suburban Insurance qualifies for panies is governed by section 4 of the BHC Act.7 As grandfather privileges under exemption D, those this case reflects, the Board has had in place since grandfather privileges would terminate if it were ac- 1971 a regulation promulgated under the BHC Act that quired by another bank holding company, such as governs the type of nonbanking activities in which Sovran, which has no grandfather rights under the nonbank companies controlled by holding company BHC Act.6 banks may engage. In light of the Board's determina- Applicant responds that Suburban Bancorp and its tion regarding Sovran's application for grandfather indirect subsidiary, Suburban Insurance, qualify under rights under exemption D, however, the Board finds it exemption D because Suburban Insurance was engag- unnecessary to address Applicant's alternative coning in the insurance agency activities in question on tentions, including its views on the scope of coverage May 1, 1982, with the full knowledge and consent of of section 4 of the Act. the Board and the state regulatory authorities, and that Suburban's grandfather privileges do not terminate when it is acquired by another bank holding company. A. Suburban Insurance Qualifies For Alternatively, Applicant contends that the Board Grandfather Privileges Under Exemption D of should disregard the separate corporate identity of the the Garn-St Germain Act insurance agency subsidiary and treat its insurance activities as being conducted directly by the parent As indicated, exemption D by its terms provides an state bank, and thus, in Applicant's view, outside the exception to the general prohibition on the conduct by scope of the nonbanking and insurance restrictions in bank holding companies of insurance activities for section 4 of the BHC Act. Finally, Applicant contends those insurance agency activities engaged in by a bank that the nonbanking provisions of section 4 of the BHC holding company or any of its subsidiaries on May 1, Act do not apply to nonbank subsidiaries of holding 1982, subject to certain geographic and functional company banks and thus Suburban Insurance may limitations.8 continue to sell insurance regardless of whether Sub- The record is clear that on the relevant date, May 1, urban Insurance's activities comply with the Board's 1982, Suburban Insurance was engaged in insurance state bank regulation. agency activities and therefore meets the literal qualifications for grandfather rights under the exemption. 5. The Board received comments from the following associations opposing approval of the application ("Protestants"): the Independent Insurance Agents of America, the National Association of 7. See e.g. Security Pacific Corporation, 72 FEDERAL RESERVE Casualty and Surety Agents, the National Association of Surety Bond BULLETIN 800 (1986), and the authorities referenced therein. Producers, the National Association of Life Underwriters, the Nation- 8. 12 U.S.C. § 1843(c)(8)(D). Specifically, paragraph (8) of section al Association of Professional Insurance Agents, the Maryland State 4(c) of the BHC Act provides an exception to the nonbanking Association of Life Underwriters, the PIA Association of Pennsylva- prohibitions of section 4(a) of the Act for shares of companies engaged nia, Maryland and Delaware, the American Council of Life Insurance, in activities that the Board has determined to be so closely related to the American Insurance Association, the National Association of banking as to be a proper incident thereto. The Garn-St Germain Act Independent Insurers, and the Alliance of American Insurers. amended this paragraph to provide that: 6. In addition, Protestants contend that Exemption D only applies for purposes of this subsection, it is not closely related to banking or managing a controlling banks for a bank holding company to provide where the activities were conducted pursuant to specific approval insurance as principal, agent, or broker except. . . (D) any insurance activity from the Board under section 4(c)(8) of the Act and that in any event which was engaged in by the bank holding company or any of its subsidiaries Suburban Bank may not under Maryland law control an affiliate on May 1, 1982, or which the Board approved for such company or any of its engaged in general insurance agency activities. subsidiaries on or before May 1, 1982 .... 12 U.S.C. § 1843(c)(8). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 Federal Reserve Bulletin • August 1987 The Board notes that the Senate Banking Committee the insurance department with an incorporated affiliate report associated with exemption D explains that the of the bank that was engaged in holding bank premisactivities grandfathered under this provision must es, Citizens Building, Inc. In 1984, the subsidiary's have been engaged in pursuant to and in accordance name was changed to Suburban Insurance, Inc. with the applicable statutory and regulatory standards In connection with its application to become a bank in effect on May 1, 1982.9 Thus, the question raised by holding company in 1972, Suburban Bancorp advised this application is whether Suburban Insurance's ac- the Board that Suburban Bank controlled a general tivities on that date were being conducted in confor- insurance agency, and Suburban has subsequently mance with applicable statutory and regulatory re- kept the Board apprised of the affiliate's insurance quirements for purposes of exemption D. activities. On September 12, 1972, the Federal Re- Suburban Bancorp never applied under section serve Bank of Richmond, in order to respond to an 4(c)(8) of the BHC Act to acquire or retain indirect inquiry from a law firm representing certain insurance ownership or control of Suburban Insurance. Rather, interests, inquired of the Maryland Bank Commissionwhen it applied to become a bank holding company in er whether such insurance activities were permitted 1972, Suburban Bancorp relied upon section 225.22(d) for state banks in Maryland. On September 14, 1972, of the Board's Regulation Y as authority to acquire the Maryland Deputy Bank Commissioner responded and retain indirect control of Suburban Insurance. As by advising that the Department was aware of the noted, this regulatory provision provides an exception insurance activities of Suburban and "took no excepto the general nonbanking prohibitions of the BHC Act tion." In 1986, in connection with the processing of by permitting a state bank, without the Board's prior Sovran's application to acquire Suburban Bancorp, approval, "to acquire or retain all. . . of the securities the Maryland Bank Commissioner advised the Board of a company that engages solely in activities in which that that office had been aware of the insurance agency the parent bank may engage, at locations which the activities conducted by Suburban Bank directly and bank may engage in the activity, and subject to the through Suburban Insurance and that "Suburban's same limitations as if the bank were engaging in the insurance activities are and have been lawful activities activity directly." 12 C.F.R. § 225.22(d)(2). for a state-chartered bank in Maryland." In order to qualify under this regulation, the compa- However, in 1987 the Maryland Insurance Commisny in question must be engaged in activities that the sioner informed the Board that Suburban Bank could bank could conduct directly.10 Protestants argue that not engage directly in insurance agency activities Suburban Insurance is not now, and was not on May 1, under the State Insurance Code as it now stands and as 1982, operating in accordance with this requirement of it stood in 1982.12 Under Maryland law, only a corpothe Board's regulation because Maryland banking and ration engaged primarily in the insurance business may insurance law prohibit a Maryland bank from engaging obtain an insurance license.13 The Commissioner addirectly in insurance agency activities.11 vised that because Suburban Bank is primarily en- The insurance activities of Suburban Bank may be gaged in the banking business, it could not be issued a traced back to 1922, when Prince George's Bank, a license to sell insurance and could not receive commispredecessor of Suburban Bank, sold insurance sions for procuring or influencing the procurement of through licensed agents. Insurance sales by employees insurance sales.14 The Insurance Commissioner conof the bank or predecessor institutions continued, and firmed that Suburban Bank could control a company in 1955 a formal insurance department was organized that holds a license to sell insurance and that Suburban within the bank. In 1964, Suburban Bank consolidated Insurance's current activities were fully consistent with Maryland insurance laws. While it now appears in retrospect that Suburban Insurance's activities did not qualify for the exemption under the section 225.22(d)(2) of Regulation Y on May 1, 1982, the overriding factor in this case is that the 9. S. Rep. No. 536, 97th Cong., 2d Sess. 39 (1982). activities were being conducted on that date and for 10. See e.g., Piedmont Carolina Financial Services, 59 FEDERAL RESERVE BULLETIN 766 (1973), where the Board stated that this regulatory provision would permit a holding company to acquire a company engaged in insurance activities that the bank could conduct directly. The Board specifically noted, however, that this company could not be acquired under this provision, if state law permitted the 12. See letter of Mr. Edward J. Mulh, State Insurance Commissionbank to invest in shares of a company engaging in this activity, but did er, dated May 18, 1987. See also, Goodman v. Perpetual Building not permit the bank to engage in the activity directly. Ass'n., 320 F. Supp. 20, 36 (D.D.C. 1970). 11. Protestants also assert that this provision of Regulation Y is 13. Md. Ann. Code, art. 48A, § 168(d) (1979), now codified at Md. invalid. However, since this regulation was in effect on May 1, 1982, Ann. Code. art. 48A, § 168(e) (1986). compliance with it would satisfy the requirements of exemption D, 14. See Md. Ann. Code, art. 48A, §§ 167(a) and (c) and 168(d) regardless of later challenges to its validity. (1979); Md. Ann. Code, art. 48A, §§ 167 and 168(e)(2) (1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 675 many years prior thereto with the knowledge of the on the grandfather date with the approval of state Board and state regulatory agencies and without a banking and insurance regulatory authorities and with determination by these agencies that the activities no determination by the Board that the activities of the were not in accordance with applicable statutes and subsidiary were not in compliance with the BHC Act regulations. On this basis, the Board finds that Subur- or Board's regulations under the Act. In such circumban Insurance qualifies for grandfather privileges un- stances, showing that the bank holding company was der exemption D.15 not operating in disregard of applicable statutes or The purpose of a grandfather provision is to avoid regulations on the grandfather date, the holding comthe disruption of settled and established relationships pany would, in the Board's view, qualify for grandfaand to maintain the status quo. The legislative history ther rights under the terms and Congressional intent of of exemption D specifically states that it is intended to exemption D. permit the "continuation of previously authorized Finally, the Board believes that equitable considerinsurance activities."16 The insurance activities of ations would also indicate that since the insurance Suburban Insurance were authorized to the extent that activities of Suburban Insurance were known to the these activities were conducted with the full knowl- public since 1972, and were being conducted with the edge of and without objection from the Board on May knowledge of the Board since that date, it would be 1, 1982, and are thus within the type of insurance unfair to now penalize Suburban Insurance for any activity Congress sought to protect in exemption D. incorrect assumptions regarding state law. For exam- While it appears that, based on information brought to ple, in Independent Bankers Association of America v. the Board's attention in 1987—16 years after Suburban Heimann,17 the court held that an industry trade group became a bank holding company and informed the could not challenge an interpretive ruling of the Comp- Board of its interest in Suburban Insurance—Subur- troller of the Currency which had been issued 12 years ban Insurance may not have technically qualified earlier and of which the trade group had knowledge. under the Board's regulation, that determination The court stated: "Equity will not protect a party that should not be applied retroactively to deprive the through years of silence has created an impression of company of a benefit which under the terms of the acquiescence that has led others to make substantial statute are made available to any company engaged in financial commitments." Id. at 488. the activity on May 1, 1982. Further, given the intent Protestants also argue that in order to qualify for of the grandfather provision, it would not appear grandfather privileges under exemption D, the bank appropriate to upset settled and long-standing relationholding company must have obtained specific approvships which existed on the grandfather date with the al from the Board under section 4(c)(8) of the BHC Act knowledge of and without objection from appropriate to conduct the particular activity and that the insurregulatory authorities. ance activity must be directly related to an extension In this regard, the Board has considered the legisla- of credit by an affiliate as opposed to the type of tive history of exemption D which, as noted, indicates general insurance activity conducted by Suburban that grandfather privileges were not intended for com- Insurance. Because Suburban Insurance's activities panies that were operating in violation of applicable were not specifically approved by Board order under statutes and regulations. This legislative history does section 4(c)(8) of the Act and are not confined to the not, however, in the Board's view, indicate a Congres- sale of credit-related insurance, Protestants claim Subsional intent to foreclose grandfather rights to holding urban Insurance does not qualify under exemption D. company subsidiaries that had been selling insurance Neither the language of exemption D nor its legislative history supports this position. The language of the statute states clearly and unambiguously that it applies to any insurance activity that 15. Protestants further contend that a Maryland bank is not authorized under Maryland banking law to sell insurance. As noted, the was engaged in on May 1, 1982, or which was ap- Maryland Bank Commissioner has advised the Board in writing on proved by the Board on or before that date. Thus, the two occasions (in 1972 and in 1986) that Suburban Bank's insurance language itself does not limit grandfather rights to the activities are authorized under Maryland banking law. The Commissioner has referred to a provision of the Maryland Code that permits a sale of credit-related insurance or to insurance activistate bank to exercise all of the powers usual in carrying on a banking ties that were specifically approved by the Board by business. (Md. Financial Institutions Code § 3-206(b)(12)). order under section 4(c)(8). The present application does not require the Board to resolve this dispute over permissible banking powers under Maryland law. Even if The legislative history of this section confirms this the Maryland Bank Commissioner's conclusion is erroneous, the interpretation. A prior version of the statute (H.R. Board nevertheless believes that Suburban Insurance qualifies for the grandfather privileges under exemption D in light of the facts and circumstances relating to its conduct of insurance activities on May 1, 1982, as discussed in detail in this Order. 16. S. Rep. No. 536, 97th Cong. 2d Sess. 71 (1982). 17. 627 F.2d 486 (D.C. Cir. 1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 Federal Reserve Bulletin • August 1987 2255, 96th Cong. 1st. Sess. (1979)) grandfathered in- The authority to engage in activities under the grandfasurance activities which were engaged in on or before ther amendment only extends to the entity, be that the holding company itself or a subsidiary or subsidiaries a grandfather date, but only if such activities were thereof, which qualifies for the grandfathered activities specifically approved by the Board. During hearings status.19 on this bill held by the House Banking Committee, the Association of Bank Holding Companies protested This legislative history as well as the terms of the that this grandfather provision "fails to take into statute indicate a Congressional intent that the grandconsideration insurance activities which were "grand- father privilege be limited to the entity which qualifies fathered" in 1956, 1966 and 1970, and for which there for the grandfather privilege under exemption D, in was never an occasion to have an application ap- this case Suburban Insurance. In other words, exempproved by the Board."18 Following these hearings, the tion D rights attach to the entity actually conducting House Banking Committee reported out a version of the activity on the grandfather date. As long as it is H.R. 2255 that deleted the requirement for Board only that grandfathered subsidiary that conducts the approval, and instead grandfathered any insurance activity and not some other affiliate, the requirements activity lawfully engaged in on the specified grandfa- of exemption D are satisfied. Thus, in the Board's ther date. (H.R. Rep. No. 845, 96th Cong. 2d Sess. view, the intent of the statute is that the grandfathered (1980)). This grandfather language was adopted, with subsidiary continues to be able to engage in the modifications, by the Senate (See, S. Rep. No. 923, activity, even if acquired by another bank holding 96th Cong. 2d Sess (1980)). company so long as the subsidiary complies with the In the Board's view, this legislative history makes it geographic and functional limitations proscribed in clear that the grandfather provision in exemption D exemption D. was not intended to be limited to the credit-related The Board believes this conclusion is consistent property and casualty insurance activities approved by with the overall intent of the grandfather provision to the Board under section 4(c)(8) of the Act prior to permit the continuation of established relationships. enactment of the Garn-St Germain Act. There is nothing in the legislative history that suggests that a company that was engaged in an insurance B. Suburban Insurance's Grandfather activity under the BHC Act for many years should Privileges do not Terminate Upon its cease the activity because it is acquired by another Acquisition by a Non-Grandfathered Bank bank holding company, when the acquisition would Holding Company not add an additional insurance competitor or permit the grandfathered subsidiary to expand its activities. Under section 4 of the BHC Act, Sovran may not As noted, Suburban Insurance could not expand its directly or indirectly acquire control of a nonbank insurance activities to any location or in any manner company, unless the acquisition qualifies under one of other than as permitted under exemption D before the exceptions found in the Act. 12 U.S.C. § 1843(a). Suburban's acquisition by Sovran. In other words, the In this case, Sovran is claiming the exception in acquisition does not disturb the status quo insofar as section 4(c)(8)(D), which as noted grandfathers insur- the insurance activities of Suburban Insurance are ance activities conducted by a bank holding company concerned. or any of its subsidiaries on May 1, 1982. However, on On two prior occasions, the Board has determined this date, Suburban Insurance was a subsidiary of that grandfather privileges under exemption D do not Suburban Bancorp, thus raising the issue whether terminate when the grandfathered entity is acquired by Suburban Insurance loses its grandfather rights under another bank holding company, provided the insurexemption D when its parent holding company is ance activities continue to be conducted by the subsidacquired by another bank holding company. iary that actually conducted the activity on the grand- Section 4(c)(8)(D) of the BHC Act does not specifi- father date and would not be expanded to other cally deal with this question. The Senate Committee affiliates of the bank holding company. report associated with this legislation, however, ex- In 1983, the Board allowed Seafirst Corporation to plains that: continue to sell credit-related property and casualty insurance after its acquisition by BankAmerica.20 The 18. Hearings on H.R. 2255 before the Subcomm. on Financial Institutions Supervision, Regulation and Insurance of the House 19. S. Rep. No. 536, 97th Cong., 2d Sess. 40 (1982). Comm. on Banking, Finance and Urban Affairs, 96th Cong. 1st Sess. 20. BankAmerica Corporation, 69 FEDERAL RESERVE BULLETIN 285 (1979). 568 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 677 Board noted that Seafirst was entitled under the terms ered activities are conducted by the subsidiary that of exemption D to continue to sell the insurance was conducting the activity on May 1, 1982. because it was lawfully engaged in the activity on May Based on these factors, the Board concludes that 1, 1982, pursuant to a prior Board approval. The Board Sovran may retain indirect ownership and control of concluded that Seafirst could continue to engage in Suburban Insurance, pursuant to section 4(c)(8)(D), that particular activity after its acquisition by Bank- provided that Suburban's general insurance agency America because Seafirst would remain an indepen- activities are limited to those conducted on the granddent and separate subsidiary of BankAmerica and the father date and that these activities are conducted only activity would not be conducted by any other subsid- by Suburban Insurance, which must remain an indeiary of BankAmerica or through any of its other pendent and separate subsidiary of Sovran. Consistent offices. The Board concluded that under the circum- with the provisions of exemption D, Suburban Insurstances presented there, the grandfathered insurance ance must limit its general insurance agency activities activity would not be transferred to any other entity or to the state in which its parent holding company, conducted beyond the scope Congress intended in Suburban Bancorp, maintained its principal place of exemption D. business on May 1, 1982 (/. e. Maryland), states Similarly, in late 1983, the Board permitted the Fuji adjacent to Maryland including the District of Colum- Bank, Ltd. to acquire Walter Heller Inc.'s commercial bia, and any additional states in which Suburban finance subsidiary, including a subsidiary that sold Insurance conducted insurance agency activities on property and casualty insurance in connection with May 1, 1982. See 12 U.S.C. § 1843(c)(8)(D) and loans by the finance company.21 The Board noted that 12 C.F.R. § 225.25(b)(8)(iv). the Heller subsidiary was entitled to grandfather rights under exemption D because it received Board approv- C. Other Issues al to engage in the activity before May 1, 1982. As in the BankAmerica case, the Board allowed the subsid- Protestants question whether Suburban Bank may be iary, after its acquisition by Fuji, to continue to lawfully affiliated with an insurance agency under conduct the grandfathered activity, noting that the Maryland banking law, even if the exemption D proviinsurance agency would remain an independent and sion applies. The Protestants note that the Maryland separate subsidiary of Fuji, would conduct activities Banking Code provides that, except with the prior only from its office in Chicago and only in connection approval of the State Bank Commissioner, no banking with loans by the finance company.22 institution may have an affiliate. (Md. Financial Insti- The Board notes that it has in the past required the tutions Code § 5-403 (1986)). The Bank Commissioner termination of grandfather privileges under section may approve an affiliation with a company providing 4(a) of the BHC Act when the company entitled to insurance services, but only if the approval imposes those rights was acquired by another company.23 the same conditions that federal law requires or per- However, unlike the situation under exemption D, the mits for a national bank. (Id.) Since national banks are terms and legislative history of the grandfather provi- not currently authorized to conduct the types of genersion of section 4(a) indicate that grandfather rights al insurance agency activities at issue here (except in were limited only to those companies that were initial- towns with populations of 5,000 or less), Protestants ly brought under the terms of the Bank Holding conclude that Suburban Bank cannot be lawfully affili- Company Act by the 1970 amendments to that Act. As ated with a company engaging in such insurance discussed above, the terms of exemption D and its agency activities. legislative history indicate that a grandfathered bank On March 12, 1987, the Maryland Bank Commisholding company would be permitted to continue to sioner advised the Board that Suburban Bank's conconduct insurance activities so long as the grandfath- trol of the insurance affiliate was permissible under the Maryland Banking Code. Under the Maryland Banking Code, restrictions on bank affiliations do not affect any affiliate, if the affiliation existed on June 1, 1935. (Md. Financial Institutions Code § 5-402 (1986)). In 21. Fuji Bank, Limited, 69 FEDERAL RESERVE BULLETIN 50 (1983). this instance, since the affiliation in question can be 22. The Board relied upon the above legislative history which indicates that grandfather rights under exemption D accrue to the traced back to 1932, it would appear to be exempt from entity actually conducting the relevant insurance agency activity, in the provisions in the Maryland Code limiting affilithat case the nonbank subsidiary of Heller. ations of Maryland banks. Based on this analysis of 23. See Maryland National!American Security Corporation, 73 Maryland law, the Board has determined to accept the FEDERAL RESERVE BULLETIN 310 (1987), where the Board approved the acquisition upon the condition that the applicant divest grandfath- Maryland Bank Commissioner's conclusion with reered nonbanking activities conducted by the acquired bank holding spect to the consistency of this particular affiliation company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 Federal Reserve Bulletin • August 1987 under Maryland law insofar as it applies to the conduct In this case, there are no material issues of fact in of insurance agency activities that the affiliate has dispute. The historical facts relating to Suburban's conducted since 1964. entry into the insurance field have been established, and no specific allegation has been made that these D. Public Benefits facts are in error. The issues relating to Maryland law and its interplay with the Bank Holding Company Act While the Board has determined that Suburban Insur- are legal issues, not factual, and therefore a hearing is ance's general insurance activities are permissible not required to resolve this matter. With respect to the under section 4(c)(8)(D) of the BHC Act and section future activities of Suburban Insurance, exemption D 225.25(b)(8)(iv) of Regulation Y, the Board must also specifically limits the geographic and functional scope determine that these activities are a proper incident to of the grandfathered insurance activities, and thus banking under section 4(c)(8) of the Act. In making Sovran's future plans with respect to these activities this determination, the Board must consider whether are circumscribed by the statute. Accordingly, the the performance of the activity can reasonably be Board has determined that a hearing is not required in expected to produce benefits to the public that out- this case and hereby denies protestants' request for a weigh possible adverse elfects. hearing.25 The Board believes that approval of this application Based on the foregoing, the Board has determined will maintain competition in the provision of insurance that the application under section 4 should be, and agency services in the area served by Suburban Insur- hereby is, approved. This determination is subject to ance and will avoid disrupting established relation- all of the conditions set forth in Regulation Y, and the ships between Suburban Insurance and its customers. requirement that the insurance activities are conduct- The Board finds that there is no evidence in the record ed solely by Sovran Insurance, which must remain an to indicate that approval of this proposal would result independent subsidiary of Suburban Bancorp. It is in undue concentration of resources, unfair or de- also subject to the Board's authority to require such creased competition, conflicts of interest, unsound modification or termination of activities of the bank banking practices, or other adverse elfects. Accord- holding company or any of its subsidiaries as the ingly, the Board has determined that the balance of the Board finds necessary to assure compliance with, and public interest factors it must consider under section prevent evasions of, the provisions and purposes of 4(c)(8) of the Act is favorable and consistent with the BHC Act and the Board's regulations and orders approval of the application. issued thereunder. By order of the Board of Governors, effective E. Request for Hearing June 29, 1987. Protestants have requested that the Board conduct a Voting for this action: Chairman Volcker and Governors hearing on the application in order to determine the Seger, Angell, and Kelley. Absent and not voting: Governors historical facts that underlie Suburban's entry into the Johnson and Heller. insurance field, the status of Maryland law, and Sovran's plans to expand its insurance operations in the WILLIAM W. WILES future. Under section 4 of the Bank Holding Company [SEAL] Secretary of the Board Act, a protestant is not entitled to a hearing on every application. A hearing is only required when there are material issues of fact in dispute.24 25. One protestant makes the claim that a public hearing is required under the net public benefits standard in the Act because of issues relating to the nature and extent of Suburban Insurance's proposed activities. However, as noted Suburban Insurance's activities will be limited by statute to those in which it was engaged on May 1, 1982, subject to the functional and geographic restrictions in section 4(c)(8)(D) and the Board's Regulation Y. Accordingly, the Board does 24. Connecticut Bankers Assn. v. Board of Governors, 627 F.2d 245 not believe a hearing is appropriate or necessary with regard to this (D.C. Cir. 1980). claim. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 679 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date Americorp, American Commercial Bank, San Francisco June 2, 1987 Ventura, California Ventura, California Arkansas Union Bankshares, Union Bancshares of Benton, St. Louis June 15, 1987 Inc., Inc., Benton, Arkansas Benton, Arkansas BancAlabama, Inc., BankAlabama—Huntsville, Atlanta June 15, 1987 Huntsville, Alabama Huntsville, Alabama Branch Corporation, Community Bancorporation, Inc., Richmond June 12, 1987 Wilson, North Carolina Greenville, South Carolina Buffalo Bancshares, Inc., O'Bannon Banking Co., St. Louis June 24, 1987 Kansas City, Missouri Buffalo, Missouri Butler Point, Inc., The First National Bank of Chicago June 2, 1987 Catlin, Illinois Catlin, Catlin, Illinois Cando Holding Company, Inc., The First Bank Cando, N.A., Minneapolis May 26, 1987 Cando, North Dakota Cando, North Dakota CB Bancshares, Inc., Cook Banking Company, Atlanta June 1, 1987 Fort Valley, Georgia Cochran, Georgia CBE, Inc., Community Bank of Elkhorn, Chicago June 5, 1987 Elkhorn, Wisconsin Elkhorn, Wisconsin CCB Financial Corporation, Clackamas County Bank, San Francisco May 21, 1987 Sandy, Oregon Sandy, Oregon Central Bancshares of the Central Bank of Shelby County, Atlanta May 29, 1987 South, Inc., Shelby County, Alabama Birmingham, Alabama Central Bank Corporation, Central Savings Bank, Minneapolis June 4, 1987 Sault Ste. Marie, Michigan Sault Ste. Marie, Michigan Chemical Financial Corporation, Manufacturers Bank of Bay City, Chicago May 27, 1987 Midland, Michigan Bay City, Michigan Citizens' Capital Corporation, Citizens' Bank, Inc., Atlanta June 11, 1987 Robertsdale, Alabama Robertsdale, Alabama Citizens Corporation, Citizens Bank, Atlanta June 12, 1987 Columbia, Mississippi Columbia, Mississippi CNB Bancshares, Inc., Wabash Valley Bank of St. Louis May 29, 1987 Evansville, Indiana Vincennes, Vincennes, Indiana Commonwealth Bancshares County Bancorp, Inc., Philadelphia May 22, 1987 Corporation, Montrose, Pennsylvania Williamsport, Pennsylvania Cosmopolitan Financial OLD CANAL BANKSHARES Chicago June 25, 1987 Services, Inc., II, INC., Countryside, Illinois Lockport, Illinois Coteau Hills Company, First State Bank of Gackle, Minneapolis May 20, 1987 Gackle, North Dakota Gackle, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 Federal Reserve Bulletin • August 1987 Section 3—Continued . , , Reserve Effective Applicant Bank(s) ^ Bank DS Bancor, Inc., The Derby Savings Bank, Boston June 10, 1987 Derby, Connecticut Derby, Connecticut D.S.B. Bankshares, Inc., Dairyman's State Bank, Chicago June 16, 1987 Randolph, Wisconsin Randolph, Wisconsin Eagle Fidelity, Inc., The Bank of Williamstown, Cleveland May 29, 1987 Williamstown, Kentucky Williamstown, Kentucky E.C.S.B. Holding Company, Emerald Coast State Bank, Atlanta June 17, 1987 Inc., Mary Esther, Florida Mary Esther, Florida Escrow Corporation of Madelia Holding Corp., Minneapolis June 5, 1987 America, Inc., Madelia, Minnesota Pennock, Minnesota F & M Bancorporation, Inc., New London National Bank, Chicago June 15, 1987 Kaukauna, Wisconsin New London, Wisconsin Farmers Enterprises, Inc., Charter West Bank, N.A., Kansas City June 2, 1987 Albert, Kansas Great Bend, Kansas FIN, Inc., American National Bank of Kansas City May 28, 1987 Mesa, Arizona Afton, Afton, Wyoming First Albany Bancshares, Inc., The First National Bank of Dallas June 22, 1987 Albany, Texas Albany, Albany, Texas First Bancorp of Louisiana, First National Bank of West Dallas June 10, 1987 Inc., Monroe, West Monroe, Louisiana West Monroe, Louisiana First Coleman Bancshares, Inc. First Coleman National Bank of Dallas June 17, 1987 Coleman, Texas Coleman, Coleman, Texas First Dodge City Bancshares, Metro Bancshares, Inc., Kansas City May 29, 1987 Inc., Broken Arrow, Oklahoma Dodge City, Kansas First National Bancorp, Banks County Financial Atlanta May 18, 1987 Gainesville, Georgia Corporation, Homer, Georgia The First National Bankshares, The First National Bank of Santa Dallas May 26, 1987 Inc., Rosa, Tucumcari, New Mexico Santa Rosa, New Mexico The First National Bank in Tucumcari, Tucumcari, New Mexico First National Corporation, West Fargo State Bank, Minneapolis June 9, 1987 Grand Forks, North Dakota West Fargo, North Dakota First Peterborough Bank Corp., The First National Bank of Boston May 18, 1987 Peterborough, Peterborough, New Hampshire Peterborough, New Hampshire First State Bancorporation, First State Bank Elkins, Inc., Richmond May 29, 1987 Inc., Elkins, West Virginia Elkins, West Virginia First Wisconsin Corporation, North Shore Bancorp, Inc., Chicago May 29, 1987 Milwaukee, Wisconsin Northbrook, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 681 Section 3—Continued . .. n w x Reserve Effective Applicant Bank(s) ^ B&nk FNB Bancshares, Inc., The First National Bank of Blue Minneapolis May 15, 1987 Blue Earth, Minnesota Earth, Blue Earth, Minnesota Granite State Bankshares, Inc., Granite Bank, Boston June 1, 1987 Keene, New Hampshire Amherst, New Hampshire GreatBanc, Inc., Evco, Inc., Chicago May 21, 1987 Aurora, Illinois Chicago, Illinois Greater Chicago Financial Austin Bank of Chicago, Chicago May 19, 1987 Corp., Chicago, Illinois Chicago, Illinois Hometown Bancorporation, The Bank of Darien, New York June 19, 1987 Inc., Darien, Connecticut Darien, Connecticut Honat Bancorp, Inc., The Honesdale National Bank, Philadelphia June 9, 1987 Honesdale, Pennsylvania Honesdale, Pennsylvania Illinois Regional Bancorp, Inc., PLUM GROVE Chicago June 5, 1987 Elmhurst, Illinois BANCORPORATION, INC., Rolling Meadows, Illinois Independent American Financial The Dauphin National Bank, Philadelphia May 22, 1987 Corporation, Dauphin, Pennsylvania Harrisburg, Pennsylvania Independent Banks of Virginia, Heritage Bank of Northern Richmond June 12, 1987 Inc., Virginia, Norfolk, Virginia McLean, Virginia Iron and Glass Bancorp, Inc., Iron and Glass Bank, Cleveland June 8, 1987 Pittsburgh, Pennsylvania Pittsburgh, Pennsylvania Kilgore Bancshares, Inc., City National Bank of Kilgore, Dallas June 19, 1987 Troup, Texas Kilgore, Texas Landmark Bancshares Christian County National Bank, St. Louis June 11, 1987 Corporation, Ozark, Missouri Clayton, Missouri Lemont Bancorp, Inc., The Lemont National Bank, Chicago June 19, 1987 Chicago, Illinois Lemont, Illinois Lewisburg Bancshares Lewisburg Banking Company, St. Louis June 19, 1987 Corporation, Lewisburg, Kentucky Lewisburg, Kentucky Liberty Bancshares Inc., The National Bank of Ansted, Richmond May 29, 1987 Montgomery, West Virginia Ansted, West Virginia Magnolia State Capital State Bank and Trust Company, Atlanta June 15, 1987 Corporation, Collins, Mississippi Magee, Mississippi The Marine Corporation, Banco di Roma, Chicago May 19, 1987 Milwaukee, Wisconsin Chicago, Illinois Mark Twain Bancshares, Inc., Edwardsville National Bank and St. Louis June 12, 1987 St. Louis, Missouri Trust Company, Edwardsville, Illinois Marrowbone Bancorp, Inc., Bank of Marrowbone, St. Louis June 8, 1987 Marrowbone, Kentucky Marrowbone, Kentucky National Security Bank Holding National Security Bank, San Francisco June 1, 1987 Company, Newport, Oregon Newport, Oregon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 Federal Reserve Bulletin • August 1987 Section 3—Continued .. r> w s Reserve Effective AApplicant Bank(s) ^ ^ Nebraska Capital Corporation, Havelock Bank, Kansas City May 22, 1987 Lincoln, Nebraska Lincoln, Nebraska Northern Bancorp, Inc., Woburn Bank and Trust Boston June 25, 1987 Woburn, Massachusetts Company, Woburn, Massachusetts Northwest Georgia Financial Alcovy Banking Company, Atlanta June 5, 1987 Corporation, Mansfield, Georgia Dallas, Georgia Norwood Associates II, Midland Bancorporation, New York May 22, 1987 Hackensack, New Jersey Paramus, New Jersey Pearl City Bancorp, The State Bank of Pearl City, Chicago May 27, 1987 Pearl City, Illinois Pearl City, Illinois Peoples Bancorp Inc., The First National Bank of Cleveland June 23, 1987 Marietta, Ohio Chesterhill, Chesterhill, Ohio Peoples Bancshares, Inc., The Peoples Savings Bank, Atlanta May 27, 1987 Clanton, Alabama Clanton, Alabama Peoples Ltd., Peoples State Bank of Wyalusing, Philadelphia May 15, 1987 Wyalusing, Pennsylvania Wyalusing, Pennsylvania P.T.C. Bancorp, Arlington Banc Corporation, Chicago June 2, 1987 Brookville, Indiana Arlington, Indiana Regional Bancorp, Inc., Medford Savings Bank, Boston June 18, 1987 Medford, Massachusetts Medford, Massachusetts Rolla Holding Company, Inc., The First Bank of Rolla, Minneapolis May 19, 1987 Rolla, North Dakota Rolla, North Dakota Security National Bancshares of Security National Bank of Kansas City May 21, 1987 Sapulpa, Inc., Sapulpa, Sapulpa, Oklahoma Sapulpa, Oklahoma Sharon Bancshares, Inc., City State Bank, St. Louis June 4, 1987 Sharon, Tennessee Martin, Tennessee Southeast Banking Corporation, The West Florida Bank, Atlanta June 1, 1987 Miami, Florida Pensacola, Florida Southern National Corporation, Liberty National Bank, Richmond May 29, 1987 Lumberton, North Carolina Charleston, South Carolina SouthTrust Corporation, Bank of Pensacola, Atlanta May 22, 1987 Birmingham, Alabama Pensacola, Florida SouthTrust Corporation, Central Bank of Volusia County, Atlanta May 22, 1987 Birmingham, Alabama South Daytona, Florida The Tampa Banking Company, The Bank of Tampa, Atlanta June 5, 1987 Tampa, Florida Tampa, Florida Three Rivers Bancshares, Inc., Bank of Milan, Atlanta June 17, 1987 Milan, Georgia Milan, Georgia Union Planters Corporation, First BancCrossville, Inc., St. Louis May 29, 1987 Memphis, Tennessee Crossville, Tennessee Western Security Bancorp, Western Security Interim Bank, San Francisco June 19, 1987 Burbank, California National Association, Burbank, California Western Security Bank, National Association, Burbank, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 683 Section 4 Nonbanking Reserve Effective Applicant Company/Activity Bank Date Alex Brown Financial Group, River City Money Management San Francisco May 22, 1987 Sacramento, California Company, Sacramento, California Banco Nacional de Mexico, issuance of consumer-type San Francisco April 27, 1987 S.N.C., payment instruments Mexico City, Mexico Banamex Holding Company, Los Angeles, California Ammex Holding Company, Los Angeles, California Ellinwood Bankshares, Inc., Ellinwood Insurance Agency, Kansas City June 17, 1987 Ellinwood, Kansas Inc., Ellinwood, Kansas sale of general insurance Fidelcor, Inc., Lazere Financial Corporation, Philadelphia June 11, 1987 Philadelphia, Pennsylvania New York, New York First Union Corporation, Business Life Insurance Richmond June 23, 1987 Charlotte, North Carolina Company of America, Charlotte, North Carolina Northwestern Services Corporation, Charlotte, North Carolina F.N.B. Corporation, Mortgage Service Corporation of Cleveland June 19, 1987 Hermitage, Pennsylvania Pittsburgh, Pittsburgh, Pennsylvania Lake Ariel Bancorp, L.A. Lease, Inc. Philadelphia May 19, 1987 Lake Ariel, Pennsylvania Lake Ariel, Pennsylvania personal property leasing O'Neill Properties, Inc., Meierhenry Agency, Inc., Kansas City June 5, 1987 Minneapolis, Minnesota O'Neill, Nebraska sale of general insurance Security Bancshares, Inc., Security Insurance Agency of St. Louis June 22, 1987 Des Arc, Arkansas Des Arc, Inc., Des Arc, Arkansas United Community Financial Mclntyre & Associates Chicago May 26, 1987 Corporation, Insurance, Wayland, Michigan Clarksville, Michigan general insurance activities Westdeutsche Landesbank Vertex Business Systems, Inc. New York June 12, 1987 Girozentrale, New York, New York Dusseldorf, West Germany data processing activities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 Federal Reserve Bulletin • August 1987 Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank Date First of America Bank BancServe Group, Inc., Chicago May 29, 1987 Corporation, Rockford, Illinois Kalamazoo, Michigan Boone State Bank, First of America Belvidere, Illinois Bancorporation-Illinois, Inc. City National Bank & Trust Co. Libertyville, Illinois of Rockford, Rockford, Illinois BancServe Credit Life Insurance Company, Rockford, Illinois ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Elfective Applicant Bank(s) Bank Date Chase Bank of Ohio, Atrium I Branch Cleveland June 18, 1987 Mentor, Ohio Cincinnati, Ohio Bank One, Milford, N.A., Milford, Ohio Sandusky Interim Bank, The Citizens Banking Company, Cleveland May 28, 1987 Sandusky, Ohio Sandusky, Ohio 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. Securities Industry Association v. Board of Gover- Grimm v. Board of Governors, No. 87-4006 (2nd Cir., nors, et al. No. 87-4041 and consolidated cases filed Jan. 16, 1987). (2d Cir., filed May 1, 1987). Independent Insurance Agents of America, et al. v. Securities Industry Association v. Board of Gover- Board of Governors, Nos. 86-1572, 1573, 1576 nors, et al., No. 87-1169 (D.C. Cir., filed April 17, (D.C. Cir., filed Oct. 24, 1986). 1987). Securities Industry Association v. Board of Gover- Jones v. Volcker, No. 87-0427 (D.D.C., filed Feb. 19, nors, No. 86-2768 (D.D.C., filed Oct. 7, 1986). 1987). Independent Community Bankers Association of Bankers Trust New York Corp. v. Board of Governors, South Dakota v. Board of Governors, No. 86-5373 No. 87-1035 (D.C. Cir., filed Jan. 23, 1987). (8th Cir., filed Oct. 3, 1986). Securities Industry Association v. Board of Gover- Jenkins v. Board of Governors, No. 86-1419 (D.C. nors, et al., No. 87-1030 (D.C.Cir., filed Jan. 20, Cir., filed July 18, 1986). 1987). Securities Industry Association v. Board of Governors, No. 86-1412 (D.C. Cir., filed July 14, 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 685 Adkins v. Board of Governors, No. 86-3853 (4th Cir., Independent Community Bankers Associaton of South filed May 14, 1986). Dakota v. Board of Governors, No. 84-1496 (D.C. Optical Coating Laboratory, Inc. v. United States, Cir., filed Aug. 7, 1985). No. 288-86C (U.S. Claims Ct., filed May 6, 1986). Urwyler, et al. v. Internal Revenue Service, et al., No. CBC, Inc. v. Board of Governors, No. 86-1001 (10th 85-2877 (9th Cir., filed July 18, 1985). Cir., filed Jan. 2, 1986). Wight, et al. v. Internal Revenue Service, et al., No. Myers, et al. v. Federal Reserve Board, No. 85-1427 85-2826 (9th Cir., filed July 12, 1985). (D. Idaho, filed Nov. 18, 1985). Florida Bankers Association v. Board of Governors, Souser, et al. v. Volcker, et al., No. 85-C-2370, et al. No. 84-3883 and No. 84-3884 (11th Cir., filed Feb. (D. Colo., filed Nov. 1, 1985). 15, 1985). Podolak v. Volcker, No. C85-0456, et al. (D. Wyo., Florida Department of Banking v. Board of Goverfiled Oct. 28, 1985). nors, No. 84-3831 (11th Cir., filed Feb. 15, 1985), Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa, and No. 84-3832 (11th Cir., filed Feb. 15, 1985). filed Oct. 22, 1985). Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filed Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448 Jan. 14, 1985). (D. Minn., filed Oct. 21, 1985). Brown v. United States Congress, et al., No. 84-2887- Kurkowski v. Wilkinson, et al., No. CV-85-0-916 6(IG) (S.D. Cal., filed Dec. 7, 1984). (D. Neb., filed Oct. 16, 1985). Melcher v. Federal Open Market Committee, No. Alfson v. Wilkinson, et al., No. Al-85-267 (D. N.D., 84-1335 (D.D.C., filed Apr. 30, 1984). filed Oct. 8, 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 A6 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 A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions A9 Federal Reserve open market transactions FEDERAL FINANCE A28 Federal fiscal and financing operations FEDERAL RESERVE BANKS A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation A10 Condition and Federal Reserve note statements A30 Gross public debt of U.S. Treasury—Types and All Maturity distribution of loan and security ownership holdings A31 U.S. government securities dealers— Transactions A32 U.S. government securities dealers—Positions MONETARY AND CREDIT AGGREGATES and financing A33 Federal and federally sponsored credit A12 Aggregate reserves of depository institutions agencies—Debt outstanding and monetary base A13 Money stock, liquid assets, and debt measures A15 Bank debits and deposit turnover SECURITIES MARKETS AND A16 Loans and securities—All commercial banks CORPORATE FINANCE A34 New security issues—State and local COMMERCIAL BANKING INSTITUTIONS governments and corporations A35 Open-end investment companies—Net sales and A17 Major nondeposit funds asset position A18 Assets and liabilities, last-Wednesday-of-month A3 5 Corporate profits and their distribution series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • August 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 A3 8 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 SUMMAR Y STATISTICS SPECIAL TABLES A53 U.S. international transactions—Summary A70 U.S. branches and agencies of foreign banks, A54 U.S. foreign trade March 31, 1987 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 1987 1987 Q2 Q3 Q4 Ql' Jan/ Feb/ Mar/ Apr. May Reserves of depository institutions' 1 Total 18.7 21.0 24.3 16.4 15.3 -.2 -.4 23.3' 8.2 2 Required 20.7 21.9 22.8 16.5 22.3 -3.3 5.9 25.5 3.0 3 Nonborrowed 18.6 21.3 25.3 18.5 20.9 .3 .2 13.6' 7.4 4 Monetary base3 9.1 9.7 11.0 11.3 14.6 7.6 2.9 9.9 8.7 Concepts of money, liquid assets, and debt4 S Ml 15.5 16.5 17.0 13.1 11.8 -.5 3.4 17.7 4.5 6 M2 9.4 10.6 9.2 6.3 9.3 -.4 1.4 6.0' .6 7 M3 8.7 9.7' 8.0 6.4 8.9 1.3 1.8 5.9' 4.9 8 L 7.1 8.1' 8.2 6.3 9.7 2.1 -3.0 4.6 n.a. 9 Debt 10.0' 12.6' 12.8' 10.6 10.8 6.7 5.7 8.9 n.a. Nontransaction components 10 M25 7.5 8.6 6.6 3.9 8.5 -.4 .6 2.0' -.8 11 M3 only6 5.9' 6.2' 3.1' 6.8 7.1 8.5 3.3 5.3' 22.2 Time and savings deposits Commercial banks 12 Savings7 13.4 25.0 36.9 37.3 41.2 34.5 28.5 27.8 16.0 13 Small-denomination time8 -2.5 -7.5 -10.7 -4.9 .0 -6.9 -8.6 -8.3 -1.3 14 Large-denomination time910 -3.5 -1.5 .1' 9.7 16.0 1.2 12.2 27.7 18.4 Thrift institutions 15 Savings7 16.0 21.0 23.2' 27.3 28.9 32.1 28.0 30.5 16.9 16 Small-denomination time .3 -3.4 -6.4 -4.6 -4.9 -3.2 .2 1.2' 1.2 17 Large-denomination time9 11.2 2.8 -7.0' -9.7 -10.0 -14.0 -8.7 -19.1 2.4 Debt components4 18 Federal 11.6 14.5 12.6' 10.0 7.4 5.2 3.7 6.5 n.a. 19 Nonfederal 9.5' 12.1' 12.9' 10.7 11.8 7.1 6.3 9.6 n.a. 20 Total loans and securities at commercial banks'1 4.1 10.6 9.1 10.1 16.1 .9 3.8 11.9 7.4 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 Financial Statistics • August 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 Factors 1987 Apr. May Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 221,583 230,049 241,800 227,243 232,065 233,864 251,207 245,284 239,658 2 U.S. government securities' 195,925 203,630 213,797 201,744 204,393 207,658 220,047 216,195 212,250 3 Bought outright 195,619 201,662 206,318 201,299 202,535 205,270 206,068 206,051 205,674 4 Held under repurchase agreements 306 1,968 7,479 445 1,858 2,388 13,979 10,144 6,576 5 Federal agency obligations 7,772 8,220 10.065 7,862 8,195 8,374 11,516 10,785 10,011 6 Bought outright 7,719 7,703 7,683 7,714 7,701 7,683 7,683 7,683 7,683 7 Held under repurchase agreements 530 5170 2,3820 1408 4940 6910 3,8330 3,1020 2,3280 8 Acceptances 9 Loans 535 872 1,179 693 1,219 798 2,021 768 891 10 Float 466 604 645 224 1,512 -48 312 210 1,016 11 Other Federal Reserve assets 16,885 16,723 16,114 16,720 16,746 17,082 17,312 17,327 15,491 12 Gold stock2 11,083 11,079 11,073 11,078 11,078 11,076 11,076 11,074 11,072 13 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 14 Treasury currency outstanding 17,711 17,744 17,795 17,738 17,748 17,758 17,769 17,783 17,797 ABSORBING RESERVE FUNDS 15 Currency in circulation 207,265 209,684 212,064 210,111 210,281 209,620 210,458 211,745 212,004 16 Treasury cash holdings2 506 530 523 531 534 531 528 528 525 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 3,161 7,163 16,028 3,815 4,758 13,312 22,844 21,006 14,940 18 Foreign 238 279 314 202 270 354 403 317 286 19 Service-related balances and adjustments 2,026 2,211 2,095 2,318 2,041 1,993 2,447 1,951 2,041 20 Other 442 424 407 399 451 390 551 375 374 21 Other Federal Reserve liabilities and capital 6,345 6,896 6,910 6,762 7,018 7,043 7,104 6,988 6.932 22 Reserve balances with Federal Reserve Banks3 35,412 36,701 37,344 36,939 40,556 34,474 40,736 36,248 36,443 End-of-month figures Wednesday figures Apr. May Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 227,578 249,706 231,880 229,625 242,619 243,550 246,508 245,848 230,812 24 U.S. government securities' 196,409 218,883 207,304 203,917 209,978 213,824 216,189 215,517 203,105 25 Bought outright 196,4090 205,112 207,3040 202,818 202,034 204,590 207,218 205,862 200,054 26 Held under repurchase agreements... 13,771 1,099 7,944 9,234 8,971 9,655 3,051 27 Federal agency obligations 7,719 11,039 7,683 8,198 10,028 10,436 10,473 11,669 9,116 28 Bought outright 7,7190 7,683 7,6830 7,714 7,683 7,683 7,683 7,683 7,683 29 Held under repurchase agreements... 0 3,3560 0 4840 2,3450 2,7530 2,7900 3,9860 1,4330 30 Acceptances 31 Loans 1,587 2,464 832 464 5,627 1,096 1,742 751 1,591 32 Float 5,241 126 922 294 -102 691 1,006 364 1,846 33 Other Federal Reserve assets 16,622 17,914 15,139 16,752 17,088 17,503 17,098 17,547 15,154 34 Gold stock2 11,081 11,076 11,070 11.078 11,077 11,076 11,076 11,073 11,071 35 Special drawing rights certificate account .. 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 36 Treasury currency outstanding 17,735 17,767 17,823 17,747 17,757 17,767 17,781 17,795 17,809 ABSORBING RESERVE FUNDS 37 Currency in circulation 207,818 210,265 213,547 210,460 210,179 209,899 211,250 212,077 212,355 38 Treasury cash holdings2 518 531 514 534 531 529 529 526 520 Deposits, other than reserve balances with Federal Reserve Banks 39 Treasury 3,576 29,688 6,383 4,056 9,431 25,802 23,043 19,914 12,608 40 Foreign 268 343 320 285 225 504 421 258 297 41 Service-related balances and adjustments 1,817 1,812 1,779 1,806 1,810 1,811 ,812 1,791 ,793 42 Other 577 533 372 557 522 527 418 394 298 43 Other Federal Reserve liabilities and capital 6,682 7,057 6,511 6,677 7,037 7,165 6,810 6,676 6,579 44 Reserve balances with Federal Reserve Banks3 40,156 33,337 36,365 39,092 46,736 31,172 36,100 38,097 30,260 1. Includes securities loaned—fully guaranteed by U.S government securities stock. Revised data not included in this table are available from the Division of pledged with Federal Reserve Banks—and excludes any securities sold and Research and Statistics, Banking Section. scheduled to be bought back under matched sale-purchase transactions. 3. Excludes required clearing balances and adjustments to compensate for 2. Revised for periods between October 1986 and April 1987. At times during float. this interval, outstanding gold certificates were inadvertently in excess of the gold 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 1984 1985 1986 1986 1987 Dec. Dec. Dec. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Reserve balances with Reserve Banks1 21,738 27.620 37.360 32.947 34,803 37.360 36.584 33.625 35,318 37,807 2 Total vault cash- 22.313 22.953 24.071 23.753 23.543 24,071 25.049 25,889 23,759 23,353 3 Vault1 18,958 20.522 22.199 21.676 21,595 22.199 23.084 23.435 21,743 21,587 4 Surplus4 3,355 2.431 1,872 2.078 1,947 1.872 1.965 2,454 2,016 1,767 5 Total reserves 40,696 48,142 59.560 56.623 56,399 59,560 59.668 57,060 57.061 59,393 6 Required reserves 39,843 47.085 58,191 53.877 55,421 58.191 58.600 55,849 56.146 58.566 7 Excess reserve balances at Reserve Banks6 853 1.058 1.369 746 978 1.369 1.068 1,211 916 827 8 Total borrowings at Reserve Banks 3.186 1.318 827 841 752 827 580 556 527 993 9 Seasonal borrowings at Reserve Banks 113 56 38 99 70 38 34 71 91 120 10 Extended credit at Reserve Banks7 2.604 499 303 497 418 303 22 s 283 264 270 Biweekly averages of daily figures for weeks ending 1987 Feb. 11 Feb. 25 Mar. 11 Mar. 25 Apr. 8 Apr. 22 May 6 May 20 June 3'' June 17'" 11 Reserve balances with Reserve Banks1 32,991 33.742 35.400 34,809 36,358 38.746 37.612 36.327 36.022 37,189 12 Total vault casfr 27,327 25.237 23.662 24,077 23,198 23.479 23.289 23.552 24.094 23.668 13 Vault' 24.677 22,857 21.582 22.038 21,350 21,761 21,519 21,801 22.151 21,976 14 Surplus4 2.650 2.380 2.080 2.039 1,848 1.719 1,770 1.751 1.943 1,692 15 Total reserves^ 57.667 56,599 56,982 56.847 57,708 60,506 59.131 58.128 58.173 59.165 16 Required reserves 56.208 55,530 56,021 55,866 57.029 59.703 58.115 57.066 57.048 58.307 17 Excess reserve balances at Reserve Banks6 1.459 1,070 961 981 679 804 1,016 1.063 1.125 858 18 Total borrowings at Reserve Banks 425 680 466 528 641 956 1.410 830 1.094 635 19 Seasonal borrowings at Reserve Banks 56 81 83 96 98 110 159 190 226 233 20 Extended credit at Reserve Banks7 265 299 275 263 248 267 299 276 297 254 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 maintenance period at institutions having no required reserve balances. to 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 NOTF.. 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • August 1987 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1987 week ending Monday MMaattuurriittyy aanndd ssoouurrccee Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20 Federal funds purchased, repurchase agreements, and oilier selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 77,242 75.122 80.561 78.545 76.854 74.628 80.467 81.639 80.380 2 For all other maturities 8,315 9,130 8.677 8.385 8.387 8.312 8,639 8,974 9,877 From other depository institutions, foreign banks and foreign official institutions, and United States government agencies 3 For one day or under continuing contract 39.390 40,802 43,033 42.504 39.322 39,651 38.893 42,511 35,807 4 For all other maturities 6,021 6.631 6.504 7,083 6,917 7,412 7,922 7.974 8,287 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 14.289 14,033 12.682 12,226 11,325 12.120 12.806 12.556 12,495 6 For all other maturities 9,258 10.649 9.714 9.638 10,345 10,525 9,347 9.869 13,167 All other customers 7 For one day or under continuing contract 27.380 27.176 27.408 26.848 25.636 25.813 26.223 26.049 21,149 8 For all other maturities 9.880 10,098 9,578 9,209 9.399 9.874 9,940 10.332 12,483 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day y or under continuing contract 9 To commercial banks in the United States 28,649' 27,373' 27.994' 26.854' 25,703'' 23,914' 29,107 ,/28,649 30,933 10 To all other specified customers- 11.791' 11.718' 10.721' 11.485' 11.926' 10.282' 11.329 11.124 11,615 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. 2. Brokers and nonbank dealers in securities; other depository institutions; foreign banks and official institutions; and United States government agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments Al 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit" SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt aanndd FFFeeedddeeerrraaa BBB lll aaannn RRR kkk eee ssseeerrrvvveee sseeaassoonnaall ccrreeddiitt11 Firs b t o r 6 r 0 o d w a i y n s g of Nex b t o r 9 r 0 o w da in y g s of After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 6/26/87 date rate 6/26/87 rate 6/26/87 rate 6/26/87 rate Boston 5V: 8/21/86 6 5 Vi 6 bVl 7 7Vi 8 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 Dallas 8/21/86 8/21/86 San Francisco ... 5V2 8/21/86 6 5Vi 6 6V2 7 IVz 8 8/21/86 Range of rates in recent years' Range(or F.R. Range(or F.R. Range(or F.R. Effective date A le l v l e F l) . — R. Ba of n k Effectiv A le l v l e F l) . — R. B o a f 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 7V: 71/2 1978--Aug. 71 73/4 73/4 11998822——JJuullyy 20 ll1/!—12 nvi 1974—Apr. 25 71/2-8 8 Sept. 77 8 8 23 111* 111/! 30 8 8 Oct. 16 8-8V2 81/2 AAuugg.. 2 11-111/! 11 Dec. 9 7-V4-8 73/4 70 8V2 8Vt! 3 11 11 16 7% 73/4 Nov. 1 8i/>-9ih 91/2 16 1()1/! 101* 91/2 9Vi 27 10-101/! 10 1975—Jan. 6 7'/4-7% 7% 30 10 10 10 7V4-7V4 71/4 1979--July ?0 10 10 Oct. 12 9Vt-10 91/1 24 71/4 7V4 AAuugg.. 17 10-10'/! 101/! 13 91h 91/! Feb. 5 6-V4-71/4 6-V4 20 101/; 101/! Nov. 22 9-9V2 9 7 6% 63/4 SSeepptt.. 19 10Vi-ll 11 26 9 9 Mar. 10 6V4-63/4 6'/4 71 11 11 Dec. 14 8V2-9 9 14 61/4 6V4 Oct. 8 11-12 12 15 8W9 8V2 May 16 6-6V4 6 10 12 12 17 8^2 81/2 23 6 6 1980--Feb. 15 12-13 13 1984—Apr. 9 8V5-9 9 1976—Jan. 19 51/2-6 51/2 19 13 13 13 9 9 23 51/2 5V2 MMaayy 79 12-13 13 Nov. 21 81/2-9 81/! Nov. 22 5V4-51/> 51/4 30 12 12 26 i$Vl 81/2 26 51/4 51/4 June n 11-12 11 Dec. 24 8 8 16 11 11 11997777——AAuugg.. 30 5y4-53/4 5 V4 JJuullyy 78 10-11 10 11998855——MMaayy 20 7V2-S 71/2 31 5IA-5-V4 53/4 79 10 10 24 IVz IVi Sept. 2 5'/4 53/4 Sept. 76 11 11 Oct. 26 6 6 Nov. 17 12 12 1986—Mar. 7 7-71/2 7 Dec. "i 12-13 13 10 7 7 1978—Jan. 9 6-6V2 6V2 8 13 13 Apr. 21 6Vi-7 61/2 20 6V2 6 Vl 23 6V2 6'h MMaayy 11 6V> 7 7 11998811--——MMaayy 5 13-14 14 July 11 6 6 12 7 7 8 14 14 AAuugg.. 21 5Vl-6 51/! July 3 7-71/4 7'/4 Nov. ? 13-14 13 22 51/2 51/! JJuullyy 10 71/4 71/4 6 13 13 Dec. 4 12 12 In effect June 26, 1987 51/2 51/2 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: Bunking and Monetary the interest rate was a fixed rate V~>. 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 Vi 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

A8 Domestic Financial Statistics • August 1987 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act ddeeppoossiitt iinntteerrvvaall"" Percent of deposits Effective date Net transaction accounts, 4 333333 111111222222//////333333000000//////888888666666 111111222222 111111222222//////333333000000//////888888666666 Nonpersonal time deposits'* By original maturity 333333 111111000000//////666666//////888888666666 000000 111111000000//////666666//////888888333333 Eurocurrency liabilities 333333 111111111111//////111111333333//////888888000000 1. Reserve requirements in effect on Dec. 31, 1986. Required reserves must be with those with the highest reserve ratio. With respect to NOW accounts and held in the form of deposits with Federal Reserve Banks or vault cash. other transaction accounts, the exemption applies only to such accounts that Nonmembers may maintain reserve balances with a Federal Reserve Bank would be subject to a 3 percent reserve requirement. indirectly on a pass-through basis with certain approved institutions. For previous 3. Transaction accounts include all deposits on which the account holder is reserve requirements, see earlier editions of the Annual Report and of the permitted to make withdrawals by negotiable or transferable instruments, pay- FEDERAL RESERVE BULLETIN. Under provisions of the Monetary Control Act. ment orders of withdrawal, and telephone and preauthorized transfers in excess of depository institutions include commercial banks, mutual savings banks, savings three per month for the purpose of making payments to third persons or others. and loan associations, credit unions, agencies and branches of foreign banks, and However, MMDAs and similar accounts subject to the rules that permit no more Edge corporations. than six preauthorized, automatic, or other transfers per month, of which no more 2. The Garn-St. Germain Depository Institutions Act of 1982 (Public Law than three can be checks, are not transaction accounts (such accounts are savings 97-320) requires that $2 million of reservable liabilities (transaction accounts, deposits subject to time deposit reserve requirements). nonpersonal time deposits, and Eurocurrency liabilities) of each depository 4. The Monetary Control Act of 1980 requires that the amount of transaction institution be subject to a zero percent reserve requirement. The Board is to adjust accounts against which the 3 percent reserve requirement applies be modified the amount of reservable liabilities subject to this zero percent reserve require- annually by 80 percent of the percentage increase in transaction accounts held by ment each year for the succeeding calendar year by 80 percent of the percentage all depository institutions, determined as of June 30 each year. Effective Dec. 30, increase in the total reservable liabilities of all depository institutions, measured 1986, the amount was increased from $31.7 million to $36.7 million. on an annual basis as of June 30. No corresponding adjustment is to be made in 5. In general, nonpersonal time deposits are time deposits, including savings the event of a decrease. On Dec. 30, 1986, the exemption was raised from $2.6 deposits, that are not transaction accounts and in which a beneficial interest is million to $2.9 million. In determining the reserve requirements of depository held by a depositor that is not a natural person. Also included are certain institutions, the exemption shall apply in the following order: (1) net NOW transferable time deposits held by natural persons and certain obligations issued accounts (NOW accounts less allowable deductions); (2) net other transaction to depository institution offices located outside the United States. For details, see accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting section 204.2 of Regulation D. 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 1987 TTyyppee ooff ttrraannssaaccttiioonn 11998844 11998855 11998866 Oct. Nov. Dec. Jan. Feb. Mar. Apr. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions1 Treasury bills 1 Gross purchases 20,036 22,214 22,602 928 3,318 5,422 997 191 1,062 4,226 2 Gross sales 8,557 4,118 2,502 0 0 0 583 3,581 0 653 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 7,700 3,500 1.000 0 0 0 0 800 0 0 Others within 1 year 5 Gross purchases 1,126 1,349 190 0 190 0 0 0 0 1,232 i Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shift 16,354 19,763 18,673 974 2,974 1,280 611 1,855 1,762 1,375 8 Exchange -20.840 -17,717 -20,179 -529 -1,810 -1,502 0 -4,954 -1,799 -522 9 Redemptions 0 0 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 1,638 2,185 893 0 893 0 0 0 0 3,642 11 Gross sales 0 0 0 0 0 0 0 252 0 0 12 Maturity shift -13,709 -17,459 -17.058 -969 -2,414 -1,280 -591 -1,650 -1,762 '' -1,373 13 Exchange 16,039 13,853 16,984 529 1,510 1,502 0 4,354 1,799 522 5 to 10 years 14 Gross purchases 536 458 236 0 236 0 0 0 0 914 15 Gross sales 300 100 0 0 0 0 0 0 0 0 16 Maturity shift -2,371 -1,857 -1,620 -5 -560 0 -20 -204 0 -3 17 Exchange 2,750 2,184 2.050 0 200 0 0 400 0 0 Over 10 years 18 Gross purchases 441 293 158 0 158 0 0 0 0 669 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -275 -447 0 0 0 0 0 0 0 0 21 Exchange 2,052 1,679 1,150 0 100 0 0 200 0 0 All maturities 22 Gross purchases 23,776 26,499 24,078 928 4,795 5,422 997 191 1.062 10,683 23 Gross sales 8,857 4,218 2.502 0 0 0 583 3,833 0 653 24 Redemptions 7,700 3,500 1,000 0 0 0 0 800 0 0 Matched transactions 25 Gross sales 808,986 866,175 927,997 77,262 60,146 91,404 63.865 82,086 72,306 83,822 26 Gross purchases 810,432 865,968 927.247 81,892 60,232 88,730 65.145 81,387 73.476 82,494 Repurchase agreements2 27 Gross purchases 127,933 134,253 170,431 5,670 16,888 44,303 36,373 0 5,657 37,653 28 Gross sales 127,690 132,351 160,268 11,984 15,471 32,028 46,897 3,168 5,657 23,881 29 Net change in U.S. government securities 8,908 20,477 29.989 -756 6,298 15,023 -8,830 -8,307 2.231 22,474 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 256 162 398 93 125 0 110 0 0 37 Repurchase agreements2 33 Gross purchases 11,509 22,183 31,142 952 1,622 5.488 4.714 0 897 9,265 34 Gross sales 11,328 20,877 30,522 2,761 1,274 3.522 6,171 857 897 5,908 35 Net change in federal agency obligations -76 1,144 222 -1,902 223 1,965 -1.567 -857 0 3,320 BANKERS ACCEPTANCES -418 00 00 00 00 00 00 00 00 00 37 Total net change in System Open Market Account 8,414 21,621 30,211 -2,658 6,522 16,988 -10,397 -9,165 2,231 25,794 1. Sales, redemptions, and negative figures reduce holdings of the System 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers Open Market Account; all other figures increase such holdings. Details may not acceptances in repurchase agreements, add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • August 1987 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1987 1987 Apr. 29 May 6 May 13 May 20 May 27 Mar. Apr. May Consolidated condition statement ASSETS 1 Gold certificate account 11,077 11,076 11,074 11.072 11,072 11,081 11,076 11,070 2 Special drawing rights certificate account 5,018 5.018 5,018 5.018 5.018 5,018 5,018 5,018 3 Coin 523 515 516 511 484 569 517 476 Loans 4 To depository institutions 1,096 1.742 751 1.591 797 1,587 2,464 832 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 0 00 00 00 00 00 Federal agency obligations 7 Bought outright 7.683 7.683 7,683 7,683 7.683 7.719 7,683 77,,668833 8 Held under repurchase agreements 2.753 2,790 3,986 1,433 1,426 0 3.356 0 U.S. government securities Bought outright 9 Bills 104.536 107,164 105.808 100,000 105,799 102,812 105.058 110077..225500 10 Notes 73.378 73.378 73,378 73,303 73.303 67,673 73,378 73,303 11 Bonds 26,676 26,676 26,676 26,751 26,751 25,924 26,676 26,751 12 Total bought outright1 204.590 207.218 205.862 200,054 205.853 196,409 205,112 207,304 13 Held under repurchase agreements 9.234 8.971 9,655 3.051 8.901 0 13,771 0 14 Total U.S. government securities 213,824 216,189 215.517 203,105 214.754 196,409 218,883 207,304 15 Total loans and securities 225,356 228,404 227,937 213,812 224,660 205,715 232,386 215,819 16 Items in process of collection 7.039 7.389 6.373 8.003 9.379 13,284 6,203 6,356 17 Bank premises 675 674 678 677 678 671 675 678 Other assets 18 Denominated in foreign currencies- 8.642 8.231 8,232 8.240 8.195 9,467 8,283 8.035 19 All other3 8.186 8,193 8.637 6,237 6,597 6,484 8.236 6,426 20 Total assets 266,516 269,500 268,465 253,570 266,083 252,289 272,394 253,878 LIABILITIES 21 Federal Reserve notes 193,187 194.513 195,326 195,578 196,882 191,170 193.547 196,714 Deposits 22 To depository institutions 32,983 37,912 39.888 32,053 42,957 41,973 35,149 3388,,114444 23 U.S. Treasury—General account 25.802 23,043 19,914 12,608 10.832 3,576 29.688 6,383 24 Foreign—Official accounts 504 421 258 297 355 268 343 320 25 Other 527 418 394 298 446 577 533 372 26 Total deposits 59,816 61,794 60,454 45,256 54,590 46,394 65,713 45,219 27 Deferred credit items 6.348 6,383 6,009 6,157 7.822 8,043 6,077 5,434 28 Other liabilities and accrued dividends4 3,024 2,482 2.524 2.386 2.588 2,219 2.696 2,300 29 Total liabilities 262,375 265,172 264,313 249,377 261,882 247,826 268,033 249,667 CAPITAL ACCOUNTS 30 Capital paid in 1.921 1.914 1,918 1,948 1.950 1,916 1,921 1.950 31 Surplus 1.873 1,873 1.873 1,873 1.873 1,874 1,873 1,873 32 Other capital accounts 347 541 361 372 378 673 567 388 33 Total liabilities and capital accounts 266,516 269,500 268,465 253,570 266,083 252,289 272,394 253,878 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 176.544 177,389 179.204 182,993 179,473 175,569 174,715 118811,,224477 Federal Reserve note statement 35 Federal Reserve notes outstanding 240.024 240.323 240,625 241.142 241.622 236,868 240,164 241.604 36 LESS: Held by bank 46,837 45,810 45,299 45,564 44,740 45.698 46,617 44,890 37 Federal Reserve notes, net 193.187 194.513 195,326 195,578 196,882 191,170 193,547 196,714 Collateral held against notes net: 38 Gold certificate account 11,077 11,076 11.074 11,072 11,072 11,081 11,076 11,070 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 177,092 178.419 179.234 179,488 180,792 175.071 177,453 180,626 42 Total collateral 193,187 194,513 195,326 195,578 196,882 191,170 193,547 196,714 1. Includes securities loaned—fully guaranteed by U.S. government securities 4. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes (if any) securities sold and market exchange rates of foreign-exchange commitments. scheduled to be bought back under matched sale-purchase transactions. NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For 2. Assets shown in this line are revalued monthly at market exchange rates. address, see inside front cover. 3. Includes special investment account at Chicago of Treasury bills maturing within 90 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity groupings 1987 1987 Apr. 29 May 6 May 13 May 20 May 27 Mar. 31 Apr. 30 May 29 1 Loans—Total 1,096 1,742 751 1.591 797 1,587 2.464 832 2 Within 15 days 1,082 1,673 668 1,577 781 1,573 2.413 752 3 16 days to 90 days 14 69 83 14 16 14 51 80 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. Treasury securities—Total .. 213.824 216.189 215,517 203,105 214.754 196,409 218.883 207.304 10 Within 15 days1 19.553 22,775 22,295 13,011 21,002 4,688 21.640 8,970 11 16 days to 80 days 50.056 49,124 51,168 44,389 47,788 53.011 48.780 51.848 12 91 days to 1 year 61,890 62,657 60.421 66,104 66,364 61,450 66.830 66.885 13 Over 1 year to 5 years 41,851 41,159 41.159 41,160 41,160 38,367 41.159 41,160 14 Over 5 years to 10 years 16,538 16,538 16,538 14,430 14.430 15,627 16.538 14,430 15 Over 10 years 23,936 23,936 23.936 24,011 24,010 23,266 23.936 24,011 16 Federal agency obligations—Total 10,436 10,473 11.669 9,116 9,109 7,719 11.039 7.683 17 Within 15 days1 2,884 2,790 4.058 1,713 1,707 295 3.487 281 18 16 days to 90 days 669 794 762 554 532 532 669 532 19 91 days to 1 year 1,547 1,553 1,524 1,524 1,521 1,352 1.547 1,521 20 Over 1 year to 5 years 3,750 3.750 3,739 3,739 3,763 3,918 3.750 3,763 21 Over 5 years to 10 years 1,306 1.306 1.306 1,306 1,306 1,342 1.306 1,306 22 Over 10 years 280 280 280 280 280 280 280 280 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

A44 DomesticN onfinancial Statistics • August 1987 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1986 1987 Item D 19 e 8 c 3 . D 19 e 8 c 4 . D 19 e 8 c 5 . D 19 e 8 c 6 . Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjustec ADJUSTED FOR 1 Total reserves2 36.16 39.51 46.06 56.17 53.23 54.49 56.17 56.88 56.87 56.85 57.95 58.35 -> Nonborrowed reserves 35.38 36.32 44.74 55.34 52.38 53.74 55.34 56.30 56.32 56.33 56.96 57.32 3 Nonborrowed reserves plus extended credit-1 35.38 38.93 45.24 55.64 52.88 54.16 55.64 56.53 56.60 56.59 57.23 57.60 4 Required reserves 35.59 38.66 45.00 54.80 52.48 53.51 54.80 55.82 55.66 55.94 57.13' 57.28 5 Monetary base4 185.38 199.20 217.32 239.51 234.43 236.88 239.51 242.43 243.97 244.56 246.59' 248.37 Not seasonally adjusted 6 Total reserves2 36.87 40.57 47.24 57.64 52.83 54.59 57.64 58.73 56.09 56.07 58.37 57.30 7 Nonborrowed reserves 36.09 37.38 45.92 56.81 51.98 53.84 56.81 58.15 55.53 55.54 57.38 56.26 8 Nonborrowed reserves plus extended credit3 36.10 39.98 46.42 57.11 52.48 54.26 57.11 58.38 55.82 55.81 57.65 56.55 9 Required reserves 36.31 39.71 46.18 56.27 52.08 53.61 56.27 57.66 54.88 55.15 57.54 56.22 10 Monetary base4 188.65 202.34 220.82 243.63 233.61 237.50 243.63 243.42 240.82 241.93 246.07' 246.83 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 11 Total reserves2 38.89 40.70 48.14 59.56 54.62 56.40 59.56 59.67 57.06 57.06 59.39 58.34 12 Nonborrowed reserves 38.12 37.51 46.82 58.73 53.78 55.65 58.73 59.09 56.50 56.53 58.40 57.30 13 Nonborrowed reserves plus extended credit3 38.12 40.09 47.41 59.04 54.15 56.15 59.04 59.32 56.74 56.82 58.19 58.02 14 Required reserves 38.33 39.84 47.08 58.19 53.88 55.42 58.19 58.60 55.85 56.15 58.57' 57.26 15 Monetary base4 192.26 204.18 223.53 247.71 237.26 241.27 247.71 246.75 244.22 244.98 249.24' 249.93 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 1987 1983 1984 1985 1986 DDeecc.. DDeecc.. DDeecc.. DDeecc..'' FFeebb// MMaarr//'' Apr.' MMaayy Seasonally adjusted 1 Ml 526.9 557.5 627.0 730.5 737.4 739.5 750.4 753.2 2 M2 2,184.6 2,369.1 2,569.5 2,800.2 2,821.1 2,824.3 2,838.5 2,839.9 M3 2,692.8 2,985.4 3,205.5 3,488.6 3,518.5 3,523.6 3,540.8 3,555.4 4 L 3,154.6 3,529.0 3.838.9 4,140.6 4,181.3 4,170.9 4,186.8 n.a. 5 Debt 5,206.3 5,946.0 6.774.9 7,643.0 7,754.6 7,791.3 7,848.7 n.a. Ml components 6 Currency2 148.3 158.5 170.6 183.5 187.2 187.7 188.9 190.2 7 Travelers checks1 4.9 5.2 5.9 6.4 6.7 6.8 6.8 6.7 8 Demand deposits4 242.3 248.3 272.2 308.3 300.8 299.3 304.0 304.0 9 Other checkable deposits5 131.4 145.5 178.3 232.3 242.9 245.7 250.8 252.3 Nontransactions components 10 In M26 1,657.7 1,811.5 1,942.5 2,069.7 2,083.7 2,084.8 2,088.1 2,086.7 11 In M3 only7 508.2 616.3 636.1 688.4 697.4 699.3 702.4 715.5 Savings deposits8 12 Commercial Banks 133.2 122.2 124.6 154.5 164.4 168.3 172.2 174.5 13 Thrift institutions 173.0 166.6 179.0 211.8 222.7 227.9 233.7 237.1 Small denomination time deposits9 14 Commercial Banks 350.9 386.6 383.9 364.7 362.6 360.0 357.5 357.1 15 Thrift institutions 432.9 498.6 500.3 488.7 485.4 485.5 486.0 486.5 Money market mutual funds 16 General purpose and broker/dealer 138.2 167.5 176.5 207.6 210.7 211.6 211.8 210.3 17 Institution-only 43.2 62.7 65.1 84.1 84.7 84.9 83.1 81.8 Large denomination time deposits10 18 Commercial Banks" 230.0 269.6 284.1 291.8 296.0 299.0 305.9 310.6 19 Thrift institutions 96.2 147.3 152.1 155.3 152.2 151.1 148.7 149.0 Debt components 20 Federal debt 1,172.8 1.367.6 1,587.0 1,806.9 1,825.9 1,831.6 1,841.6 n.a. 21 Nonfederal debt 4,033.5 4,578.4 5,187.9 5,836.2 5,928.7 5,959.6 6,007.1 n.a. Not seasonally adjusted 2? Ml 538.3 570.3 641.0 746.5 723.3 729.0 757.6 745.0 23 M2 2.191.6 2,378.3 2,580.5 2,813.7 2,809.1 2,818.0 2,847.1 2,828.9 24 M3 2,702.4 2,997.2 3,218.8 3,503.9 3,508.7 3,520.7 3,548.9 3,545.6 25 L 3,163.1 3,539.7 3,850.7 4,154.1 4,173.1 4,174.1 4,194.8 n.a. 26 Debt 5,200.7 5,940.2 6,768.3 7,635.8 7,738.2 7,768.1 7,821.1 n.a. Ml components 27 Currency2 150.6 160.8 173.1 186.2 184.8 186.0 188.0 190.1 28 Travelers checks-' 4.6 4.9 5.5 6.0 6.2 6.4 6.4 6.5 29 Demand deposits4 251.0 257.2 282.0 319.5 291.9 291.5 305.8 298.9 30 Other checkable deposits5 132.2 147.4 180.4 235.0 240.3 245.1 257.5 249.5 Nontransactions components 31 M26 1,653.3 1,808.0 1,939.5 2,067.1 2,085.8 2,089.0 2.089.5 2,083.8 32 M3 only7 510.8 618.9 638.3 690.2 699.6 702.7 701.8 716.8 Money market deposit accounts 33 Commercial banks 230.4 267.4 332.5 379.0 378.5 378.2 375.4 368.8 34 Thrift institutions 148.5 150.0 180.7 192.4 192.3 192.3 190.1 188.3 Savings deposits8 Commercial Banks 132.2 121.4 123.9 153.8 162.8 167.2 172.1 174.9 36 Thrift institutions 172.4 166.2 178.8 211.8 221.8 227.8 233.9 237.7 Small denomination time deposits9 37 Commercial Banks 351.1 386.7 383.8 364.4 362.1 359.6 355.6 355.6 38 Thrift institutions 433.5 499.6 501.5 489.8 487.9 485.8 484.4 483.2 Money market mutual funds 39 General purpose and broker/dealer 138.2 167.5 176.5 207.6 210.7 211.6 211.8 210.3 40 Institution-only 43.2 62.7 65.1 84.1 84.7 84.9 83.1 81.8 Large denomination time deposits10 41 Commercial Banks" 231.6 271.2 285.6 293.2 298.1 301.3 303.2 309.2 42 Thrift institutions 96.3 147.3 151.9 154.9 153.1 151.2 148.0 149.0 Debt components 43 Federal debt 1,170.2 1,364.7 1,583.7 1,805.4 1,827.9 1,839.1 1,846.7 n.a. 44 Nonfederal debt 4,030.5 4,575.5 5,184.6 5,830.4 5,910.4 5,928.9 5,974.4 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 DomesticN onfinancialS tatistics • August 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 1987 Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 128,440.8 154,556.0 189,534.1 187,594.4 206,689.6 210,574.2 211,169.4 217,019.7 224,603.0 1 Major New York City banks 57,392.7 70,445.1 91,212.9 96,829.5 95,831.3 99,357.1 98,712.3 104,224.5 107,159.2 3 Other banks 71,048.1 84,110.9 98,321.4 90,764.9 110,858.4 111,217.1 112,457.1 112,795.2 117,443.7 4 ATS-NOW accounts3 1,588.7 1,920.8 2,351.1 2,501.0 2,960.8 2,255.7 2,306.0 2,344.6 2,384.7 5 Savings deposits4 633.1 539.0 410.3 424.9 533.7 459.2 477.7 468.6 528.0 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 434.4 496.5 561.8 538.2 560.7 580.3 594.7 613.8 627.0 7 Major New York City banks 1,843.0 2,168.9 2,460.6 2,513.2 2,251.6 2,426.4 2,461.0 2,707.8 2,711.5 8 Other banks 268.6 301.8 327.4 292.8 340.0 345.5 357.0 358.0 368.5 9 ATS-NOW accounts3 15.8 16.7 16.8 16.1 18.3 13.4 13.5 13.6 13.6 10 Savings deposits4 5.0 4.5 3.1 2.9 3.5 2.9 2.9 2.8 3.1 DEBITS TO Not seasonally adjusted Demand deposits2 11 All insured banks 128,059.1 154,108.4 189,443.3 167,465.5 226.263.1 216,638.7 191,572.9 222,532.0 229,095.0 12 Major New York City banks 57,282.4 70,400.9 91,294.4 85,849.7 106,935.2 102,274.2 89,866.7 106,161.2 108,597.8 13 Other banks 70,776.9 83,707.8 98,149.0 81,615.8 119,327.9 114,364.5 101,706.2 116,370.8 120,497.3 14 ATS-NOW accounts3 1,579.5 1,903.4 2,338.4 2,255.1 2,841.5 2,679.2 2,173.2 2,422.7 2,735.8 15 MMDA5 848.8 1,179.0 1,599.3 1,434.0 2,058.2 1,913.3 1,600.7 1,754.4 2,071.1 16 Savings deposits4 632.9 538.7 404.3 382.7 503.6 499.0 434.6 476.2 570.8 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 433.5 497.4 564.0 476.4 600.3' 579.9' 550.0 641.0 635.1 18 Major New York City banks 1,838.6 2,191.1 2,494.3 2,225.4 2,483.2' 2,345.5r 2,273.2' 2,742.6 2,755.6 19 Other banks 267.9 301.6 327.9 260.8 357.4 346.6 329.4 377.3 375.0 70 ATS-NOW accounts3 15.7 16.6 16.8 14.6 17.4 15.7 12.9 14.1 15.2 21 MMDA5 3.5 3.8 4.5 3.8 5.5' 5.1' 4.3' 4.7 5.6 22 Savings deposits4 5.0 4.5 3.1 2.6 3.3 3.1 2.7 2.9 3.4 1. Annual averages of monthly figures. NOTE. Historical data for demand deposits are available back to 1970 estimated 2. Represents accounts of individuals, partnerships, and corporations and of in part from the debits series for 233 SMSAs that were available through June states and political subdivisions. 1977. Historical data for ATS-NOW and savings deposits are available back to 3. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- July 1977. Back data are available on request from the Banking Section, Division counts authorized for automatic transfer to demand deposits (ATS). ATS data are of Research and Statistics, Board of Governors of the Federal Reserve System, available beginning 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

A44 Domestic Nonfinancial Statistics • August 1987 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1986 1987 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted 1 Total loans and securities2 1,978.3 1,998.2 2,022.6 2,044.6 2,052.4 2,063.5 2,089.8 2,118.3 2,119.7 2,126.2 2,147.3 2,160.6 2 U.S. government securities 275.7 284.7 291.5 294.9 299.6 304.1 309.9 316.3 315.2 314.3 315.8 320.1 J Other securities 187.0 189.7 196.0 204.2 199.8 197.9 196.9 190.2 193.8 195.5 197.2 197.6 4 Total loans and leases2 1,515.6 1,523.7 1,535.1 1,545.4 1,553.0 1,561.5 1,583.0 1,611.8 1,610.7 1,616.4 1.634.3 1,642.9 5 Commercial and industrial 513.0 512.6 515.2 517.3 520.0 541.4 554.1 553.8 551.7 553.9 555.8 6 Bankers acceptances held3.. 6.3 6.1 6.5 6.6 6.7 6.4 6.4 6.8' 6.8 6.2' 6.5 66..88 / Other commercial and industrial 506.6 506.5 508.7 510.7 513.3 519.2 535.0' 547.2'" 546.9' 545.5 547.4' 549.0 8 U.S. addressees4 497.3 497.7 499.8 501.7 504.6 510.7 525.7 537.8 537.9 536.8 538.9' 540.8 9 Non-U.S. addressees4.... 9.4 8.9 8.9 9.0 8.8 8.5 9.4 9.5 9.1 8.7 8.5 8.2 10 Real estate 453.6 458.3 464.8 468.9 474.2 479.6 489.0 499.2 504.0 511.0 517.9 526.3 11 Individual 305.1 306.3 308.1 309.9 311.2 312.6 314.2 314.9 315.2 315.7 316.6 316.7 12 Security 41.3 43.7 43.1 42.8 39.1 40.1 38.6 37.7 38.5 38.3 4433..66 4422..00 13 Nonbank financial institutions 34.6 34.5 34.5 34.9 35.5 34.9 35.2 35.7 34.7 35.0 35.4 35.4 14 Agricultural 33.7 33.2' 33.0 32.7 32.4 32.1 31.7 31.2' 30.7' 30.1'- 29.5' 2299..33 15 State and political subdivisions 60.1 59.9 60.1 60.0 59.3 58.7 57.9 57.8 57.2 56.9 56.0'- 55.2 16 Foreign banks 10.3 10.3 10.1 10.1 10.0 10.0 10.4 10.6 10.3 9.7 9.9 9.9 1/ Foreign official institutions ... 6.0 6.1 6.1 6.0 6.0 5.9 5.8 5.9 6.1 6.7 6.7 5.8 18 Lease financing receivables... 20.4 20.5 20.7 21.1 21.8 22.0 22.2 22.1 22.2 22.3 22.6 22.9 19 All other loans 37.4 38. y 39.6' 41.8' 43.4' 40.0' 36.6 42.6' 38.K 38.8' 42.2'" 43.6 Not seasonally adjusted 20 Total loans and securities2 1,978.2 1,993.7 2,015.1 2,042.3 2,044.0 2,064.2 2,105.2 2,123.7 2,121.6 2,127.8 2,148.4 2,157.9 21 U.S. government securities 276.2 285.6 290.5 293.8 296.1 303.2 308.3 314.6 318.9 317.2 317.7 319.8 22 Other securities 185.7 187.5 196.2 205.0 200.1 198.3 198.1 193.7 194.1 194.4 195.2 196.8 23 Total loans and leases2 1,516.3 1,520.6 1,528.4 1,543.5 1,547.8 1,562.6 1,598.7 1,615.4 1,608.6 1,616.2 1.635.4 1,641.4 24 Commercial and industrial.... 514.2 512.1 512.8 516.1 517.8 525.2 544.3 552.4 551.7 554.5 556.5 557.5 25 Bankers acceptances held3.. 6.4 6.2 6.3 6.7 6.6 6.6 6.7 6.7'" 6.7r 6.2 66..44 66..77 26 Other commercial and industrial 507.8 506.0 506.5 509.4 511.2 518.5 537.6 545.8' 545.0' 548.3 550.0' 550.8 2/ U.S. addressees4 498.4 496.8 497.3 500.2 502.1 509.5 528.8 537.1 536.3 539.9 541.6 542.4 28 Non-U.S. addressees4.... 9.4 9.2 9.1 9.2 9.1 9.1 8.8 8.7' 8.7' 8.4 8.4 8.4 29 Real estate 453.3 458.4 464.9 469.9 475.1 480.7 489.9 499.3 503.1 509.8 516.7 525.4 30 Individual 303.8 305.2 307.9 310.8 312.3 313.7 317.8 317.9 314.7 313.3 314.4 314.8 31 Security 41.9 42.7 40.7 41.3 37.8 40.4 40.9 39.4 37.5 38.6 45.1 42.1 32 Nonbank financial institutions 34.7 34.5 34.8 35.6 35.6 35.4 36.4 35.7 33.8 33.8 34.9' 34.9 33 Agricultural 34.1 34.0 33.9 33.7 33.1' 32.2 31.4 30.5' 29.8' 29.2' 28.8' 29.1 34 State and political subdivisions 60.1 59.9 60.1 60.0 59.3 58.7 57.9 57.8 57.2 56.9 56.0'" 55.2 35 Foreign banks 10.1 10.3 9.9 10.3 10.0 10.1 10.9 10.7 10.5 9.7 9.5 9.6 36 Foreign official institutions ... 6.0 6.1 6.1 6.0 6.0 5.9 5.8 5.9 6.1 6.7 6.7 5.8 37 Lease financing receivables... 20.5 20.5 20.6 21.0 21.5 21.8 22.2 22.4 22.4 22 5 22.7 22.9 38 All other loans 37.7 36.8 36.8' 39.0 39.1 38.6 41.3 43.3' 41.6' 41.1' 44.2' 44.1 1. These data also appear in the Board's 0.1 (407) release. 3. Includes nonfinancial commercial paper held. 2. Excludes loans to commercial banks in the United States. 4. United States includes the 50 states and the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1986 1987 SSoouurrccee June July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar. Apr. May Total nondeposit funds 1 Seasonally adjusted2 134.3 136.1 137.9 142.6 140.5 144.2 144.9 153.9' 157.1 161. 7' 158.0' 165.9 2 Not seasonally adjusted 132.0 132.9 137.8 141.9 139.5 145.7 145.0 153.4r 159.8 164.0' 158.1' 166.6 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 158.0 165.5 167.4 166.9 167.8 166.0 164.0 169.0' 169.3 167.7' 167.7' 165,4 4 Not seasonally adjusted 155.7 162.4 167.3 166.2 166.9 167.5 164.1 168.5' 171.9 170.0' 167.8' 166.2 5 Net balances due to foreign-related institutions, not seasonally adjusted -23.7 -29.5 -29.5 -24.3 -27.3 -21.8 -19.1 -15.1 -12.2 -6.0 -9.7 .5 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted4 -30.5 -33.8 -31.2 -29.2 -31.9 -28.7 -30.7 -25.7 -24.0 -20.8 -22.4 -15.1 7 Gross due from balances 72.2 73.9 75.2 74.0 73.5 70.8 73.4 70.8 68.6 65.7 70.0 67.9 8 Gross due to balances 41.7 40.1 44.0 44.8 41.6 42.1 42.7 45.2 44.6 44.8 47.6 52.8 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted5 6.8 4.3 1.7 4.9 4.6 6.9 11.6 10.6 11.8 14.8' 12.7 15.5 10 Gross due from balances 62.8 64.2 66.3 67.9 68.3 68.7 70.8 74.6 72.9 71.1 72.6 75.4 11 Gross due to balances 69.6 68.6 67.9 72.7 72.9 75.6 82.5 85.1 84.8 85.9' 85.3 90.9 Security RP borrowings 12 Seasonally adjusted® 90.1 95.2 95.9 95.9 97.0 96.9 97.0 99.2' 95.5 92.5' 95.3' 95.1 13 Not seasonally adjusted 87.9 92.0 95.8 95.2 96.1 98.5 97.1 98.7' 98.1 94.8' 95.4' 95.9 U.S. Treasury demand balances7 14 Seasonally adjusted 17.7 15.4 14.5 16.5 17.1 23.2 21.2 21.3 23.2 17.7 20.7 26.1 15 Not seasonally adjusted 16.1 16.8 11.1 18.2 15.3 15.3 19.2 27.5 28.6 17.1 21.6 30.8 Time deposits, $100,000 or more8 16 Seasonally adjusted 341.8 341.1 344.3 344.2 342.7 343.3 345.6 350.1 351.1 354.1 359.8 366.2 17 Not seasonally adjusted 339.2 338.3 344.0 345.5 343.8 344.1 347.1 351.3 353.2 356.4 357.1 364.7 1. Commercial banks are those in the 50 states and the District of Columbia business. This includes borrowings from Federal Reserve Banks and from foreign with national or state charters plus agencies and branches of foreign banks, New banks, term federal funds, overdrawn due from bank balances, loan RPs, and York investment companies majority owned by foreign banks, and Edge Act participations in pooled loans. corporations owned by domestically chartered and foreign banks. 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. 3. Other borrowings are borrowings on any instrument, such as a promissory 8. Averages of Wednesday figures. note or due bill, given for the purpose of borrowing money for the banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic NonfinancialS tatistics • August 1987 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series' Billions of dollars 1986 1987 AAccccoouunntt July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,144.5 2,164.8 2,179.7 2,183.2 2,227.3 2,314.3 2,284.8 2,279.4 2,279.2 2,306.2'- 2,318.9 i Investment securities 449.0 460.0 469.4 471.9 475.4 479.6 482.2 484.7 486.2 492.5 495.4 3 U.S. government securities 269.1 272.9 276.6 282.8 287.3 292.6 296.1 298.8 299.5 305.1' 307.0 4 Other 179.9 187.1 192.8 189.1 188.0 187.0 186.1 185.9 186.7 187.5'' 188.4 5 Trading account assets 28.6 29.3 27.9 26.0 28.1 27.8 26.4 29.0 25.2 23.3 21.4 6 Total loans 1,666.9 1.675.6 1,682.4 1,685.3 1,723.8 1,807.0 1,776.3 1,765.6 1,767.8 1,790.3 1,802.1 7 Interbank loans 148.7 145.5 139.8 141.2 154.7 168.9 160.1 156.7 154.3 151.8 160.4 8 Loans excluding interbank 1,518.2 1,530.1 1,542.5 1,544.1 1,569.1 1,638.1 1,616.2 1,608.9 1,613.5 1,638.5 1,641.7 9 Commercial and industrial 510.6 513.8 515.9 517.2 524.9 568.2 551.1 551.5 555.3 555.5 558.2 10 Real estate 459.8 466.5 470.5 476.2 481.8 497.5 499.9 503.5 510.7 519.0' 527.4 11 Individual 305.8 308.8 311.2 312.8 314.1 320.4 317.0 314.7 313.1 315.2 314.8 12 All other 242.1 241.0 244.9 237.8 248.2 252.0 248.3 239.2 234.4 248.9 241.3 13 Total cash assets 209.0 208.3 199.3 203.5 227.0 273.7 214.4 206.3 203.8 209.7 230.8 14 Reserves with Federal Reserve Banks 28.6 28.3 28.2 31.6 32.2 41.2 33.4 28.4 31.1 29.8 37.9 15 Cash in vault 23.3 23.7 22.9 23.5 11 i 25.7 23.7 23.5 22.9 24.0 25.1 16 Cash items in process of collection ... 72.2 73.5 66.2 66.2 86.5 111.3 74.5 71.4 68.1 74.5 81.3 17 Demand balances at U.S. depository institutions 34.3 34.0 32.8 33.1 38.3 43.3 34.0 33.0 32.7 33.9 37.2 18 Other cash assets 50.7 48.7 49.2 49.0 47.9 52.3 48.8 50.1 49.0 47.5 49.3 19 Other assets 195.3 194.8 201.4 198.6 202.2 224.8 201.3 201.1 202.1 204.0' 208.5 20 Total assets/total liabilities and capital ... 2,548.9 2,567.8 2,580.4 2,585.3 2,656.5 2,812.8 2,700.5 2,686.8 2,685.2 2,719.9r 2,758.2 21 Deposits 1,822.4 1,837.6 1,834.5 1,847.1 1,900.2 2,018.0 1,898.3 1,895.5 1,899.6 1,919.5' 1,939.1 22 Transaction deposits 541.6 545.7 538.9 548.8 596.3 691.1 577.8 569.2 568.8 590.7 596.9 23 Savings deposits 492.5 499.2 505.5 516.0 522.9 535.0 532.3 535.9 539.7 535.1 538.6 24 Time deposits 788.3 792.6 790.1 782.2 781.1 791.9 788.2 790.3 791.2 793.6 803.6 25 Borrowings 381.7 379.8 391.6 383.3 397.4 414.5 432.7 425.6 414.9 422. V 435.6 26 Other liabilities 168.7 173.8 176.3 175.7 180.0 199.6 188.0 184.6 188.7 195.2'' 200.2 27 Residual (assets less liabilities) 176.0 176.7 178.1 179.2 178.9 180.6 181.5 181.2 181.9 182.5'' 183.3 MEMO 28 U.S. government securities (including trading account) 288.4 290.6 293.2 299.5 304.8 308.4 314.5 320.1 316.7 318.9 320.6 29 Other securities (including trading account) 189.2 198.7 204.1 198.4 198.8 198.9 194.1 193.7 194.7 196.9 196.1 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 ( 30 Loans and securities 2,020.1 2,034.6 2,044.8 2.052.1 2,094.7 2,154.4 2,136.7 2,130.3 2,121.7 2,146.9' 2,156.2 31 Investment securities 433.8 443.0 450.5 452.9 457.1 459.3 461.5 463.3 463.6 470.0' 471.5 32 U.S. government securities 262.5 265.0 267.9 273.6 279.0 283.0 286.8 289.2 289.4 295.2 296.7 33 Other 171.3 178.0 182.5 179.3 178.2 176.3 174.8 174.1 174.2 174.8'' 174.8 34 Trading account assets 28.6 29.3 27.9 26.0 28.1 27.8 26.4 29.0 25.2 23.3 21.4 35 Total loans 1,557.7 1,562.3 1.566.4 1,573.2 1,609.5 1,667.3 1,648.8 1.638.0 1,632.9 1,653.6'' 1,663.3 36 Interbank loans 124.0 119.7 115.6 118.8 133.0 137.9 134.3 130.5 124.1 124.2 128.6 37 Loans excluding interbank 1.433.7 1.442.7 1,450.8 1,454.3 1,476.4 1,529.5 1,514.5 1,507.5 1,508.8 1,529.3 1,534.7 38 Commercial and industrial 448.9 449.4 448.1 449.0 455.7 488.2 475.5 474.1 474.6 473.5 475.3 39 Real estate 453.8 460.4 464.3 470.0 475.1 490.3 493.2 497.0 504.1 512.0R 520.3 40 Individual 305.4 308.5 310.9 312.5 313.8 320.1 316.7 314.4 312.7 314.9 314.5 41 All other 225.6 224.4 227.5 222.7 231.8 230.9 229.2 221.9 217.4 229.0 224.7 42 Total cash assets 190.1 191.2 182.5 185.6 210.0 253.5 196.6 188.9 186.5 192.5 213.2 43 Reserves with Federal Reserve Banks 27.2 26.6 26.9 29.7 29.8 39.7 31.2 27.1 29.7 27.2 35.9 44 Cash in vault 23.3 23.7 22.9 23.5 22.2 25.7 23.6 23.5 22.8 24.0 25.0 45 Cash items in process of collection ... 71.7 73.1 65.8 65.6 86.1 110.9 74.0 71.0 67.7 74.0 80.9 46 Demand balances at U.S. depository institutions 32.5 32.3 30.9 31.3 36.3 40.8 32.2 31.1 31.1 31.9 35.1 47 Other cash assets 35.4 35.5 36.0 35.5 35.6 36.4 35.6 36.4 35.2 35.4 36.2 48 Other assets 140.4 139.3 143.5 141.0 141.6 165.0 141.5 144.0 143.4 144.4 143.0 49 Total assets/total liabilities and capital ... 2,350.6 2,365.0 2,370.8 2,378.7 2,446.3 2,572.8 2,474.8 2,463.2 2,451.5 2,483.8' 2,512.4 50 Deposits 1,771.6 1,784.2 1,779.3 1.792.8 1,844.8 1,957.0 1,840.8 1,838.2 1,840.7 1,857.1 1,876.5 51 Transaction deposits 533.5 537.6 530.6 540.9 588.2 682.2 569.4 561.3 560.5 582.2 588.4 52 Savings deposits 490.8 497.4 503.7 514.1 520.8 533.0 530.3 533.9 537.7 533.1' 536.6 53 Time deposits 747.3 749.3 745.0 737.7 735.8 741.8 741.1 743.0 742.5 741.8R 751.5 54 Borrowings 302.2 296.8 306.9 301.3 314.1 322.9 341.7 336.1 319.1 328.2' 337.1 55 Other liabilities 103.9 110.5 109.6 108.6 111.7 115.5 114.0 110.8 113.0 119.1' 118.7 56 Residual (assets less liabilities) 172.9 173.5 174.9 176.0 175.8 177.5 178.3 178.1 178.8 179.4' 180.2 1. Data have been revised because of benchmarking to new Call Reports and condition report data. Data for other banking institutions are estimates made for new seasonal factors beginning July 1985. Back data are available from the the last Wednesday of the month based on a weekly reporting sample of foreign- Banking Section, Board of Governors of the Federal Reserve System, Washing- related institutions and quarter-end condition reports. ton, D.C., 20551. 2. Commercial banking institutions include insured domestically chartered Figures are partly estimated. They include all bank-premises subsidiaries and commercial banks, branches and agencies of foreign banks. Edge Act and other significant majority-owned domestic subsidiaries. Loan and securities data Agreement corporations, and New York State foreign investment corporations. for domestically chartered commercial banks are estimates for the last Wednes- 3. Insured domestically chartered commercial banks include all member banks day of the month based on a sample of weekly reporting banks and quarter-end and insured nonmember banks. 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 1987 AAccccoouunntt Apr. lr Apr. 8' Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 1 Cash and balances due from depository institutions 114,764 103,001 119,102 109,998 99,258 99.081 100,312 94,593 114,534 2 Total loans, leases and securities, net 1,011,944 1,006,954 1,020,867' 1,022,162' 1,016,966' 1,019,275 1,007,593 1,021,292 1,014,501 3 U.S. Treasury and government agency 112,715 112,481 112,292r 110,833' 110,969' 111,297 110,477 112,136 111,722 4 Trading account 16,596 16,368 16,578 14,346 13,847 13,840 12,705 14,496 13,612 Investment account, by maturity 96,118 96,113 95,714' 96,486' 97,123' 97.458 97,772 97,640 98,110 6 One year or less 15,993 16,016 16,017 15,396' 15,293' 15,261 15.062 15,095 14,817 7 Over one through five years 40,597 40,048 40,630 41,532' 42,055' 43,314 43,348 44,825 44,760 8 Over five years 39,528 40,048 39,067' 39,559' 39,774' 38,882 39,361 37,720 38,533 9 Other securities 67,349 67,107 67,949' 68,435' 69,313' 69,107 68,619 68,245 68,218 10 Trading account 3,773 3,511 4,182 4,576 4,946 4,617 4,164 3,801 3,719 11 Investment account 63,575 63,596 63,768' 63,859' 64,367' 64,490 64,456 64,444 64,499 1? States and political subdivisions, by maturity 51,369 51,310 51.380 51,421 51,528 51,333 51,348 51,338 51,394 13 One year or less 6,528 6,575 6,544 6,580 6,629 6,604 6,566 6,515 6,501 14 Over one year 44,841 44,735 44,835 44,841 44,899 44,729 44,782 44,823 44,893 15 Other bonds, corporate stocks, and securities 12,207 12,286 12,388' 12,437' 12,840' 13,157 13,107 13,106 13,105 16 Other trading account assets 4,279 4,909 4.792' 4,517' 4,535' 4,438 4,819 4,469 4,045 17 Federal funds sold1 62,950 58,332 63,856 65,983 60,379 64,038 56,279 64,090 61,737 18 To commercial banks 38.441 35,870 41,298 39,636 35,833 37,820 32.273 35,894 35.880 19 To nonbank brokers and dealers in securities 18,402 15,202 16,118 18,885 16,539 18.006 16.655 18,588 17,494 70 To others 6,107 7,261 6,439 7,462 8,007 8,212 7,351 9.607 8,364 71 Other loans and leases, gross2 786,991 786,533 794,406' 794,712' 793,930' 792,674 789,760 794,833 792,846 V Other loans, gross2 768,644 768,146 775,969' 776,282' 775,326' 774.084 771,165 776,234 774,168 73 Commercial and industrial2 279,251 278,291 279,974' 279,510' 277,296' 278,649 277.184 280,527 278,868 74 Bankers acceptances and commercial paper 2,369 2,350 2,229' 2,480' 2,247' 2,475 2,415 2,514 2,214 ?"> All other 276,882 275,941 277,744' 277,030' 275,049' 276,174 274,769 278,013 276,654 76 U.S. addressees 273,569 272,606 274,304' 273,672' 271,734' 272,832 271,476 274,669 273,358 27 Non-U.S. addressees 3,313 3,335 3,440 3,358 3,315 3,341 3,293 3,344 3,296 78 Real estate loans2 219,727 220,005 220,970' 220,850' 221,383' 221.775 223,466 225,557 225,630 79 To individuals for personal expenditures 140,568 140,393 140,986' 141,486' 141,928' 141,795 141,746 141,349 141,369 30 To depository and financial institutions 51,988 53,592 53,060 52,571' 53,490' 54,593 54,321 54,124 53,684 31 Commercial banks in the United States 21,171 22,600 21,782 22,504 23,356' 23,062 23.202 22,805 23,614 3? Banks in foreign countries 5,200 5,001 4,632 4,896 4,561 5,109 4,556 4,920 4,949 33 Nonbank depository and other financial institutions 25,616 25,990 26,645 25,171' 25,573' 26,422 26,564 26,398 25,121 34 For purchasing and carrying securities 14,900 15,762 18,463 20,353 20,435 16,577 15,234 15,299 14,465 35 To finance agricultural production 5,322 5,325 5,323 5,326 5,318 5,367 5,389 5,478 5,475 36 To states and political subdivisions 34,077 33,798 33,742' 33,679' 33,533' 33,296 33,241 33,269 33,215 37 To foreign governments and official institutions 3,166 3,027 3,068 3,000 3,045 3,111 2,984 2,990 2,905 38 All other 19,645 17,954 20,383' 19,508' 18,897' 18,920 17,601 17,640 18,555 39 Lease financing receivables 18,346 18,387 18,437 18,430 18,604 18,590 18.594 18,599 18,678 40 LESS: Unearned income 4,578 4,600 4,607' 4,602' 4,495' 4,455 4,470 4,480 4,473 41 Loan and lease reserve2 17,760 17,808 17,822 17,716 17,667 17,824 17,891 18,001 19,594 4? Other loans and leases, net2 764,652 764,124 771,978' 772,394' 771,769' 770,395 767,398 772,352 768,779 43 All other assets 130,848 129,474 128,054' 126,362' 125,988' 125,055 123,976 120,826 126,390 44 Total assets 1,257,556 1,239,429 1,268,024' 1,258,522' 1,242,212' 1,243,412 1,231,881 1,236,711 1,255,426 45 Demand deposits 250,145 223,884 262,558' 233,431 228,895 226,206 218,037 227,904 231,830 46 Individuals, partnerships, and corporations 194,452 174,173 195,730' 179,974 176,883 174.649 172,153 176,985 179,549 47 States and political subdivisions 5,776 4,594 6.138 5,755 5,585 5,913 4,826 5,226 5,478 48 U.S. government 1,516 2.877 11,518 3,963 4,378 2,335 1,254 4,083 1,288 49 Depository institutions in United States 30,113 23,630 28,222 25,181 23,857 25,570 23.365 24,988 27,652 50 Banks in foreign countries 6,643 6,640 6,546 6.421 6,338 6.846 5,892 6,324 6,774 51 Foreign governments and official institutions 1,030 928 855 829 1,076 1,148 959 922 1,128 57 Certified and officers' checks 10,615 11,042 13,549 11,309 10,777 9.743 9,586 9,377 9,960 53 Transaction balances other than demand deposits 61,602 63,235 66,729 64,623 60,280 60,165 58,996 59,331 59,148 54 Nontransaction balances 521,088 521,011 518,641 516,313 516,208 517,195 518,242 520,744 523,201 55 Individuals, partnerships and corporations 482,865 483.188 481,172 478,418 478.130 478,411 479,174 480.996 483,352 56 States and political subdivisions 26,498 26,352 26,170 26,439 26,698 27,313 27,514 28,099 28,107 57 U.S. government 745 738 699 833 791 876 880 896 897 58 Depository institutions in the United States 10,029 9,801 9,672 9,705 9,698 9,722 9,791 9,860 9,934 59 Foreign governments, official institutions and banks 951 932 928 918 890 873 883 892 911 60 Liabilities for borrowed money 251,568 261,387 251,681' 267,021' 253,928' 264,402 257,996 254,111 261,270 61 Borrowings from Federal Reserve Banks 0 1,180 0 4,838 156 1,075 0 844 0 67 Treasury tax-and-loan notes 4,977 8,904 7,906 20,504' 20,764 20,980 20,633 20,865 20,549 63 All other liabilities for borrowed money3 246,592 251,303 243,775' 241,679' 233,008' 242,347 237,364 232,402 240,721 64 Other liabilities and subordinated note and debentures 84,443 81,150 79,924' 88,656' 94,408' 86,538 89,311 85.521 90,945 65 Total liabilities 1,168,847 1,150,668 1,179,533' 1,170,044' 1,153,720' 1,154,506 1,142,582 1,147,611 1,166,394 66 Residual (total assets minus total liabilities)4 88,709 88,761 88,491 88,478 88,492 88,906 89,299 89,100 89,032 MEMO 67 Total loans and leases (gross) and investments adjusted5 974,671 970,893 980,214' 982,340' 979,939' 980,672 974,478 985,074 979,075 68 Total loans and leases (gross) adjusted2-5 790,329 786,396 795,181' 798,555' 795,121' 795,830 790,563 800,223 795,089 69 Time deposits in amounts of $100,000 or more 157,684 158,678 157,278 158,003 159,599' 159,952 160,553 162,880 164,502 70 Loans sold outright to affiliates—total6 1,940 1,903 1,862 1,754 1,685 1,722 1,698 1,703 1,677 71 Commercial and industrial 1,460 1,457 1,402 1,283 1,215 1,252 1,216 1,190 1,165 7? Other 480 446 460 470 470 470 483 513 513 73 Nontransaction savings deposits (including MMDAs) 236,368 235,664 234,545 231,712 230,211 230,838 230,886 230,901 231,157 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 ofloans 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

A44 DomesticN onfinancialS tatistics • August 1987 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures except as noted 1987 AAccccoouunntt Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 1 Cash and balances due from depository institutions 34,104 28,339 32,137 27,134 24,078 23.225 22,904 21,202 28,872 2 Total loans, leases and securities, net1 220,495 220,858 223,880 229,297 226,815 229,013 2^1,084 227,461 223,290 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 13,793 14,002 13,929 14,041 14,218 14,100 14,038 14,382 14,081 6 One year or less 1,594 1.613 1,650 1,536 1,535 1,532 1,483 1,791 1,388 7 Over one through five years 4,173 4,221 4,407 4,981 5,135 5,178 5,170 5,687 5,680 8 Over five years 8,025 8,168 7,872 7,524 7,547 7,390 7,385 6,904 7,013 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 16,472 16,498 16,555 16,482 16,527 16,471 16,453 16,428 16,496 12 States and political subdivisions, bv maturity 13,868 13,869 13,933 13,915 13,955 13,920 13,966 13,963 14,010 13 One year or less 1,350 1,386 1,368 1,380 1,395 1,404 1,392 1.388 1,386 14 Over one year 12.517 12,483 12,564 12,536 12,560 12,516 12,574 12,575 12,625 15 Other bonds, corporate stocks and securities 2,605 2,629 2,622 2,567 2,572 2,550 2,487 2,465 2,486 16 Other trading account assets2 0 0 0 0 0 0 0 0 0 Loans and leases 17 Federal funds sold3 22.934 23,054 23,906 28,502 26,681 30.730 24,226 28,361 26,007 18 To commercial banks 9,572 10,488 11,366 13.432 11,837 13,796 8,895 10.919 9,432 19 To nonbank brokers and dealers in securities 9,451 7,408 8,311 9,749 8,456 9.974 9,338 10,500 10,235 20 To others 3.911 5,158 4,228 5,322 6,388 6.960 5.992 6,942 6,340 21 Other loans and leases, gross 174.035 174,057 176,262 176,943 175,959 174,314 173,037 174,972 174,979 22 Other loans, gross 169.559 169.560 171,748 172.422 171,302 169,643 168,375 170,289 170,238 23 Commercial and industrial 62,882 62.575 62,558 62.283 61,118 61,790 61,721 63,360 62,272 24 Bankers acceptances and commercial paper 578 601 562 743 590 677 706 744 538 25 All other 62.304 61,974 61,996 61,540 60,527 61,113 61,014 62,616 61,734 26 U.S. addressees 61.880 61,568 61,539 61,086 60,096 60,656 60,554 62,136 61,240 27 Non-U.S. addressees 423 406 457 453 431 458 460 479 494 28 Real estate loans 40.831 40,813 40,591 40,817 40,895 41,201 41,599 42,297 42,427 29 To individuals for personal expenditures 20,508 20,500 20,641 20,788 20,908 20,940 20,949 20,716 20,781 30 To depository and financial institutions 21.679 22,583 21,444 21,521 21,792 22,275 22,086 21,435 22,224 31 Commercial banks in the United States 11.865 12,815 11,751 12,026 12,311 12,259 12,294 12,028 12,747 32 Banks in foreign countries 2,786 2,642 2,319 2,563 2,365 2,667 2,255 2,429 2,556 33 Nonbank depository and other financial institutions 7,028 7,126 7,374 6,932 7,117 7,349 7,536 6,979 6,920 34 For purchasing and carrying securities 7.390 7,868 9,936 11,006 11,265 7,902 7,512 7,825 7,418 35 To finance agricultural production 2*^2 258 252 253 248 252 257 257 273 36 To states and political subdivisions 8.237 8.172 8.223 8,207 8,088 8,024 8,024 8,036 8,075 37 To foreign governments and official institutions 974 833 887 845 882 926 787 828 737 38 All other 6,807 5,957 7,215 6,701 6,108 6,333 5,440 5,533 6,031 39 Lease financing receivables 4,476 4.497 4,514 4,521 4,657 4,671 4,662 4,683 4,741 40 LESS: Unearned income 1,579 1,588 1,589 1,585 1,485 1,467 1,470 1,479 1,482 41 Loan and lease reserve 5.160 5,165 5,183 5,086 5,085 5,135 5,199 5,203 6,790 42 Other loans and leases, net 167,295 167,304 169,489 170,271 169,389 167,712 166,368 168,290 166,706 43 All other assets4 65,752 62.611 62,520 62,166 62,900 61,003 59,961 59,002 63,854 44 Total assets 320,351 311,808 318,536 318,596 313,793 313,242 303,950 307,665 316,016 Deposits 45 Demand deposits 71,589 57.581 72,378 61,261 59,405 58,373 52.845 59.437 60,741 46 Individuals, partnerships, and corporations 50,265 39.243 48,460 42,007 41,385 40,351 37,095 41.469 42,065 47 States and political subdivisions 709 571 757 528 556 848 515 682 615 48 U.S. government 149 504 2.660 707 713 370 112 809 189 49 Depository institutions in the United States 9,944 5.441 7,306 7,047 5,771 6,130 5,120 6,484 6,550 50 Banks in foreign countries 5,409 5,383 5,329 5.073 5,176 5,674 4,763 5,140 5,558 51 Foreign governments and official institutions 882 770 709 688 917 1.008 797 798 965 52 Certified and officers' checks 4,231 5.670 7,157 5,210 4,886 3,990 4,441 4,053 4,800 53 Transaction balances other than demand deposits ATS, NOW, Super NOW. telephone transfers) 8,115 8,456 9.190 8,769 8,135 8,023 7,865 7,950 7,858 54 Nontransaction balances 100,184 99,553 98,996 98,544 98,093 98,562 98,342 99,425 99,940 55 Individuals, partnerships and corporations 91,620 91,041 90.694 90,205 89,705 89,866 89,563 90,350 90,799 56 States and political subdivisions 6,152 6,149 6.111 6,105 6,123 6,494 6,558 6,838 6,908 57 U.S. government 32 33 31 31 31 25 25 32 28 58 Depository institutions in the United States 1,848 1.820 1,647 1,694 1,752 1,712 1,722 1,729 1,714 59 Foreign governments, official institutions and banks 532 510 513 508 482 465 473 476 492 60 Liabilities for borrowed money 76,943 83,640 76,413 79,879 73,209 78,771 73,061 71,971 75,998 61 Borrowings from Federal Reserve Banks 0 1,180 0 3.250 0 500 0 430 0 62 Treasury tax-and-loan notes 1,367 2,111 1,932 5,236 5,244 5,242 4,995 5,219 5,154 63 All other liabilities for borrowed money5 75,576 80.348 74,481 71,393 67,965 73,029 68,065 66,322 70,844 64 Other liabilities and subordinated note and debentures 33,841 32,899 32,053 40,697 45,586 39,900 42,134 39,153 41,760 65 Total liabilities 290,671 282,130 289,030 289,151 284,429 283,630 274,246 277,936 286,297 66 Residual (total assets minus total liabilities)6 29,680 29,678 29,506 29,446 29,365 29,612 29.704 29,729 29,719 MEMO 67 Total loans and leases (gross) and investments adjusted1-7 205,799 204,307 207.534 210,511 209,237 209,560 206,565 211,196 209,384 68 Total loans and leases (gross) adjusted7 175,533 173,808 177,050 179,988 178,492 178,989 176,074 180,386 178,806 69 Time deposits in amounts of $100,000 or more 35,881 36,174 35,816 35,733 35,955 36,465 36,431 37,326 37,289 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 Apr. I Apr. 8 Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 1 Cash and due from depository institutions. 10,354 10.092 9,722 10,152 10.282' 10,654 9,951 9,863 10,168 2 Total loans and securities 90.327' 87,760' 89,702' 94.674' 92.318' 91,055 90.421 92,540 94.518 3 U.S. Treasury and govt, agency securities 6,966 6,748 6,551 6.370 6,728 6.716 6.461 6,712 7,051 4 Other securities 7.087 7.225 7,264 7,278 7,493 7.884 7,921 8,070 8.100 5 Federal funds sold- 5,862 4.173 5,098 9,212 7.223 7,007 6,532 7,793 8.370 6 To commercial banks in the United States 4,523 2.837 3,456 7,235 5.759 5,930 5,701 6,872 7,820 7 To others 1,339 1.336 1,643 1,976 1.464 1,077 832 922 550 8 Other loans, gross 70,412' 69.614' 70,788' 71,815' 70.874'" 69,448 69,507 69,964 70.997 9 Commercial and industrial 44,547' 43,382' 43,871' 44,672'" 44.208 43,894 43.876 44,583 44.519 10 Bankers acceptances and commercial paper 2,660 2.838 2,971 3.126 3.112 3.184 3.139 3.270 3.237 11 All other 41,887' 40.544' 40,900' 41,546' 41.096 40.710 40.737 41,313 41.282 12 U.S. addressees 39,587'' 38,228' 38,612'" 39,143' 38.835 38,438 38.467 38,945 39,006 13 Non-U.S. addressees 2.300r 2.316' 2,289' 2,404' 2.261 2.271 2.270 2,368 2.275 14 To financial institutions 16,433 16,396 16,403 16.278 15.922 15,397 16,452 16,536 16,953 15 Commercial banks in the United States. 12.840 12.750 12,475 12,568 12.173 11.650 12,729 12,666 13,116 16 Banks in foreign countries 912 900 1,085 1,018 953 908 924 1.061 950 17 Nonbank financial institutions 2,680 2,747 2,843 2,693 2.795 2.839 2,799 2.809 2,887 18 To foreign govts, and official institutions .. 1.028 1.153 1,152 908 839 746 657 572 595 19 For purchasing and carrying securities . . 2,916' 3.274' 3.940' 4.534' 4.412' 3.900 2,968 2.697 3,105 20 All other 5,488 5,409 5,422 5,421 5.493 5,511 5,554 5.576 5.825 21 Other assets (claims on nonrelated parties). . 22,625' 23.250' 22,821' 22,946' 23.587' 23,847 24.447 24,613 24,208 22 Net due from related institutions 15,447 15,467 15,984 15,086 13.753 14,863 14,246 16,921 16.283 23 Total assets 138,752 136,569' 138,230' 142,858' 139.940' 140,419 139,065 143,937 145,178 24 Deposits or credit balances due to other than directly related institutions .... 40,678 40,160 40,955 41,955 43,556 43,491 43.684 43.389 43,949 25 Transaction accounts and credit balances-' 3,417 2,982 3,232 3,392 3.786 3,442 3,275 3,322 3,781 26 Individuals, partnerships, and corporations 1,802' 1,781' 1,906' 2,041' 2.035' 2,019 1,993 2,066 2.046 27 Other 1,615' 1.201 1,326' 1,351' 1.750 1,423 1,282 1,256 1,735 28 Nontransaction accounts4 37,261 37,177 37,723 38.563 39.771 40,048 40,409 40,067 40,169 29 Individuals, partnerships, and corporations 30,116 30.058 30,502 31.374 32.299 32,480 32,849 32,492 32,887 30 Other 7,145 7,120 7.221 7,189 7.471 7,569 7,559 7,575 7,282 31 Borrowings from other than directly related institutions 58,121' 56,636' 57,452'" 58,461' 54,106' 53.936 50,976 58,021 55,359 32 Federal funds purchased5 27,813 25,702 25.848 26,489 23,451 25,553 21.121 27,050 24.053 33 From commercial banks in the United States 16,972 15.455 15.480 15,178 12.771 15,394 10,997 15,121 14.509 34 From others 10.841 10,248 10,368 11,312 10,680 10.159 10,124 11,929 9,544 35 Other liabilities for borrowed money.... 30,307' 30,933' 31,604' 31.971' 30.655' 28.383 29,855 30,971 31,305 36 To commercial banks in the United States 26.051 26,800 27,577 27,791 26,439 24.322 25,671 26,037 26,670 37 To others 4.256' 4,133' 4,027' 4,180' 4.216' 4.061 4,184 4,933 4,635 38 Other liabilities to nonrelated parties 24,474' 25,563' 25,889'" 26,252'" 27,024 27.271 27,828 28.044 27,630 39 Net due to related institutions 15,480 14.210' 13,934 16,190 15.254 15,721 16,576 14,483 18.239 40 Total liabilities 138,752 136,569' 138,230' 142,858'" 139.940' 140,419 139,065 143,937 145,178 MEMO 41 Total loans (gross) and securities adjusted6 72,964' 72.173' 73,772'" 74,872'" 74,386' 73.475 71,991 73,002 73,582 42 Total loans (gross) adjusted6 58,911'" 58,200' 59,957' 61,224' 60.165' 58,875 57,609 58,220 58,431 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

A44 Domestic Nonfinancial Statistics • August 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 1987 11998811 11998822 11998833 11998844 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Dec.3-4 Mar. June Sept. Dec. Mar. 1 All holders—Individuals, partnerships, and corporations 288.9 291.8 293.5 302.7 321.0 307.4 322.4 333.6 363.6 336.0 i Financial business 28.0 35.4 32.8 31.7 32.3 31.8 32.3 35.9 41.4 35.9 3 Nonfinancial business 154.8 150.5 161.1 166.3 178.5 166.6 180.0 185.9 202.0 183.1 4 Consumer 86.6 85.9 78.5 81.5 85.5 84.0 86.4 86.3 91.1 88.9 5 Foreign 2.9 3.0 3.3 3.6 3.5 3.4 3.0 3.3 3.3 2.9 6 Other 16.7 17.0 17.8 19.7 21.2 21.6 20.7 22.2 25.8 25.2 Weekly reporting banks 1985 1986 1987 11998811 11998822 11998833 11998844 DDeecc.. DDeecc.. DDeecc.. DDeecc..22 Dec.5-4 Mar. June Sept. Dec. Mar. 7 All holders—Individuals, partnerships, and corporations 137.5 144.2 146.2 157.1 168.6 159.7 168.5 174.7 195.1 178.2 8 Financial business 21.0 26.7 24.2 25.3 25.9 25.5 25.7 28.9 32.5 28.7 9 Nonfinancial business 75.2 74.3 79.8 87.1 94.5 86.8 93.1 94.8 106.4 94.4 10 Consumer 30.4 31.9 29.7 30.5 33.2 32.6 34.9 35.0 37.5 36.8 11 Foreign 2.8 2.9 3.1 3.4 3.1 3.3 2.9 3.2 3.3 2.8 12 Other 8.0 8.4 9.3 10.9 12.0 11.5 11.9 12.8 15.4 15.5 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 1987 Instrument DD 1199 ee 88 cc 22 .. DD 1199 ee 88 cc 33 .. DD 1199 ee 88 cc 44 .. DD 1199 ee 88 cc 55 .. DD 1199 ee 88 cc 66 .. Nov. Dec. Jan. Feb. Mar. Apr. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 166,436 187,658 237,586 300,899 331,016 322,435 331,016 337,190 336,677 338,797 346,769 Financial companies3 Dealer-placed paper4 2 Total 34,605 44.455 56.485 78,443 100,207r 95,176' 100,207' 101,965' 102,939' 102,889 103,957 3 Bank-related (not seasonally adjusted) 2,516 2,441 2,035 1.602 2,265 2,035' 2,265 2,284 2,174 2,116 2,307 Directly placed paper5 4 Total 84,393 97.042 110.543 135,504 152,385 146,856 152,385 157.252 158,954 159,333 163,421 5 Bank-related (not seasonally adjusted) 32.034 35,566 42,105 44.778 40.860 39,205 40,860 45,085 45,722 46,634 48,604 6 Nonfinancial companies6 47,437 46,161 70,558 86,952 78,424' 80,403' 78,424'" 77,973' 74,784' 76,575 79,391 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 79,543 78,309 78,364 68,413 64,974 64,952 64,974 65,049 65,144 65,954r 66,660 Holder 8 Accepting banks 10.910 9,355 9,811 11,197 13,423 12,787 13.423 13,224 11.828 12,255' 11,118 9 Own bills 9,471 8.125 8.621 9,471 11.707 10,951 11,707 10,662 10.006 10,516 9,721 10 Bills bought 1,439 1,230 1,191 1.726 1,716 1,835 1,716 2,561 1,821 1,730' 1,396 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 1,052 1,317 983 1,230 1,453 1,519 13 Others 66.204 67,807 67,881 56,279 50,234 51,113 50,234 50,843 52,087 52,255' 54,024 Basis 14 Imports into United States 17,683 15.649 17.845 15.147 14,670 15,354 14,670 14,459 14,615 14,711' 15,095 15 Exports from United States 16,328 16,880 16.305 13,204 12.960 12.699 12,960 12,783 12,876' 13,083' 13,826 16 All other 45.531 45,781 44,214 40,062 37.344' 36,899 37,344 37,807 37,654' 38,159' 37,739 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 Eifective Date Average rate 10.50 1986—July 11 8.00 1985—Jan. 10.61 1986—Apr 10.00 Aug. 26 7.50 Feb. 10.50 May 9.50 Mar. 10.50 June 1987—Apr. I 7.75 Apr. 10.50 July 9.00 May 1 8.00 May 10.31 Aug 8.50 15 8.25 June 9.78 Sept Julv 9.50 Oct Aug. 9.50 Nov Sept 9.50 Dec Oct. 9.50 Nov. 9.50 1987—Jan Dec. 9.50 Feb Mar 1986—Jan. . 9.50 Apr Feb. 9.50 May Mar. 9.10 June 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

A44 Domestic NonfinancialS tatistics • August 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. 1987 1987, week ending IInnssttrruummeenntt 11998844 11998855 11998866 Feb. Mar. Apr. May May 1 May 8 May 15 May 22 May 29 MONEY MARKET RATES 1 Federal funds1-2 10.22 8.10 6.80 6.10 6.13 6.37 6.85 6.50 7.30 6.75 6.77 6.80 2 Discount window borrowing'-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 6.12 6.22 6.39 6.83 6.59 6.76 6.78 6.94 6.88 4 3-month 10.10 7.95 6.49 6.05 6.16 6.45 6.93 6.74 6.83 6.85 7.11 6.99 s 6-month 10.16 8.01 6.39 5.99 6.10 6.50 7.04 6.85 6.91 6.93 7.27 7.12 Finance paper, directly placed4-5 6 1-month 9.97 7.91 6.58 6.02 6.11 6.28 6.78 6.43 6.73 6.76 6.86 6.81 V 3-month 9.73 7.77 6.38 5.88 5.95 6.22 6.74 6.42 6.67 6.74 6.83 6.76 8 6-month 9.65 7.75 6.31 5.79 5.88 6.14 6.47 6.29 6.44 6.47 6.52 6.47 Bankers acceptances5-6 9 3-month 10.14 7.92 6.39 5.99 6.09 6.41 6.91 6.68 6.75 6.82 7.15 6.98 10 6-month 10.19 7.96 6.29 5.93 6.02 6.44 7.03 6.77 6.85 6.92 7.30 7.11 Certificates of deposit, secondary market7 II I-month 10.17 7.97 6.61 6.10 6.18 6.42 6.81 6.59 6.69 6.72 7.00 6.86 12 3-month 10.37 8.05 6.52 6.10 6.17 6.52 6.99 6.78 6.85 6.89 7.23 7.03 13 6-month 10.68 8.25 6.51 6.10 6.18 6.65 7.24 7.03 7.07 7.11 7.53 7.33 14 Eurodollar deposits, 3-month8 10.73 8.28 6.71 6.32 6.37 6.73 7.25 6.94 7.11 7.10 7.36 7.36 U.S. Treasury bills5 Secondary market9 15 3-month 9.52 7.48 5.98 5.59 5.59 5.64 5.66 5.69 5.61 5.69 5.68 5.67 16 6-month 9.76 7.65 6.03 5.59 5.60 5.90 6.05 6.05 5.91 5.95 6.21 6.17 17 1-year 9.92 7.81 6.08 5.63 5.68 6.09 6.52 6.31 6.39 6.54 6.71 6.48 Auction average10 18 3-month 9.57 7.49 5.97 5.59 5.56 5.76 5.75 5.79 5.81 5.47 6.03 5.70 19 6-month 9.80 7.66 6.02 5.60 5.56 5.93 6.11 6.14 6.16 5.74 6.34 6.18 20 1-year 9.91 7.76 6.07 5.74 5.68 5.92 6.56 n.a. n.a. 6.56 n.a. n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds" Constant maturities12 21 1-year 10.89 8.43 6.46 5.96 6.03 6.50 7.00 6.76 6.88 7.03 7.20 6.95 22 2-year 11.65 9.27 6.87 6.40 6.42 7.02 7.76 7.44 7.60 7.73 8.00 7.78 23 3-year 11.89 9.64 7.06 6.56 6.58 7.32 8.02 7.71 7.87 8.00 8.27 8.01 24 5-year 12.24 10.13 7.31 6.79 6.79 7.57 8.26 7.92 8.09 8.24 8.52 8.23 25 7-year 12.40 10.51 7.55 7.06 7.06 7.83 8.47 8.16 8.33 8.47 8.71 8.42 26 10-year 12.44 10.62 7.68 7.25 7.25 8.02 8.61 8.32 8.49 8.61 8.84 8.55 27 20-year 12.48 10.97 7.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 30-year 12.39 10.79 7.80 7.54 7.55 8.25 8.78 8.54 8.67 8.77 9.00 8.71 Composite13 29 Over 10 years (long-term) 11.99 10.75 8.14 7.69 7.62 8.31 8.79 8.57 8.66 8.76 9.03 8.73 State and local notes and bonds Moody's series14 30 Aaa 9.61 8.60 6.95 6.05 6.25 7.20 7.61 7.40 7.55 7.50 7.80 7.60 31 Baa 10.38 9.58 7.76 6.98 7.25 8.29 8.78 8.55 8.70 8.65 8.95 8.80 32 Bond Bu\er series15 10.10 9.11 7.32 6.61 6.66 7.55 8.00 7.85 7.86 7.82 8.31 8.03 Corporate bonds Seasoned issues16 33 All industries 13.49 12.05 9.71 9.03 8.99 9.35 9.82 9.64 9.68 9.75 9.97 9.93 34 Aaa 12.71 11.37 9.02 8.38 8.36 8.85 9.33 9.21 9.21 9.25 9.49 9.40 35 Aa 13.31 11.82 9.47 8.88 8.84 9.15 9.59 9.40 9.42 9.52 9.77 9.73 36 A 13.74 12.28 9.95 9.20 9.13 9.36 9.83 9.58 9.64 9.77 9.99 9.98 37 Baa 14.19 12.72 10.39 9.65 9.61 10.04 10.51 10.37 10.45 10.45 10.62 10.58 38 A-rated. recently-offered utility bonds17 13.81 12.06 9.61 8.82 8.84 9.51 10.05 9.90 9.87 10.10 10.27 10.05 MEMO; Dividend/price ratio18 39 Preferred stocks 11.59 10.49 8.76 7.93 7.52 7.94 8.41 8.26 8.22 8.36 8.52 8.55 40 Common stocks 4.64 4.25 3.48 3.02 2.90 2.99 3.02 3.05 2.94 2.96 3.14 3.03 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 days, 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. 90-119 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 often 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 A25 1.36 STOCK MARKET Selected Statistics 1986 1987 IInnddiiccaattoorr 11998844 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31. 1965 = 50) 92.46 108.09 136.00 137.06 136.74 140.84 142.12 151.17 160.23 166.43 163.88 163.00 2 Industrial 108.01 123.79 155.85 156.52 156.56 162.10 163.85 175.60 189.17 198.95 199.03 198.78 Transportation 85.63 104.11 119.85 114.06 120.04 122.27 121.26 126.61 135.49 138.55 137.91 141.30 Utility 46.44 56.75 71.35 74.56 73.38 75.77 76.07 78.54 78.19 77.15 72.74 71.64 Finance 89.28 114.21 147.18 145.56 143.89 142.97 144.29 153.32 158.41 162.41 150.52 145.97 6 Standard & Poor's Corporation (1941-43 = 10)1 160.50 186.84 236.34 238.27 237.36 245.09 248.61 264.51 280.93 292.47 289.32 289.12 7 American Stock Exchange2 (Aug. 31, 1973 = 50) 207.96 229.10 264.38 264.30 257.82 265.14 264.65 289.02 315.60 332.55 330.65 328.77 Volume of trading (thousands of shares) 8 New York Stock Exchange 91,084 109,191 141,306 150.831 131,155 154,770 148,228 192,419 183,478 180,251 187,135 170,898 9 American Stock Exchange 6,107 8,355 11,846 10,853 8,930 10,513 12.272 14,755 14,962 15,678 14,420 11,655 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 22,470 28,390 36,840 34,580 36,310 37,090 36,840 34,960 35,740 38,080 39,820 38,890 Free credit balances at brokers4 11 Margin-account5 1,755 2,715 4,880 3,395 3,805 3,765 4,880 5,060 4,470 4,730 4,660 4,355 12 Cash-account 10,215 12,840 19,000 14,060 14,445 15,045 19,000 17,395 17,325 17,370 17,285 16,985 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 4. Free credit balances are in accounts with no unfulfilled commitments to the companies. With this change the index includes 400 industrial stocks (formerly brokers and are subject to withdrawal by customers on demand. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 5. New series beginning June 1984. financial. 6. Regulations G, T, and U of the Federal Reserve Board of Governors, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index prescribed in accordance with the Securities Exchange Act of 1934, limit the effectively cutting previous readings in half. amount of credit to purchase and carry margin stocks that may be extended on 3. Beginning July 1983, under the revised Regulation T, margin credit at securities as collateral by prescribing a maximum loan value, which is a specified broker-dealers includes credit extended against stocks, convertible bonds, stocks percentage of the market value of the collateral at the time the credit is extended. acquired through exercise of subscription rights, corporate bonds, and govern- Margin requirements are the difference between the market value (100 percent) ment securities. Separate reporting of data for margin stocks, convertible bonds, and the maximum loan value. The term "margin stocks" is defined in the and subscription issues was discontinued in April 1984. corresponding regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • August 1987 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1986 1987 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Savings and loan associations 1 Assets 903,488 948,781 963,274 954,226 957,945 965,032 957,229 961,894 964,096 963,316' 935,424 936,903 2 Mortgages 555,291 583,235 574,992 565,037 565,353 566,438 557,137 557,303 556,780 553,552 n.a. n.a. 97,303 108,324 113,158 113,100 113,621 117,617 121,606 122,682 123,257 128,695 128,097 4 Cash and investment securities' . 124,801 126,712 134,881 130,877 132,787 138,863 138,619 138,213' 141,510' 142,700' 133,237 136,226 5 Other 223,396 238,833 253,400 258,310 259,798 259,726 261,415 250,781' 250,297' 251,769' 260,892 262,921 6 Liabilities and net worth 903,488 948,781 963,274 954,226 957,945 965,032 957,229 961,894 964,096 963,316' 935,424 936,903 7 Savings capital 725,045 750,071 751,138 744,026 747,020 749.020 743,518 742,747 740,066 741,081' 721,574 722,082 n a. 8 Borrowed money 125,666 138,798 145,032 148,054 146,578 148.541 155,748 152,567 156,920 159,742' 152,981 151,786 9 FHLBB 64,207 73,888 73,520 73,553 75,058 75,594 80,364 75,295 75,626 80,194 75,552 75,673 10 Other 61,459 64,910 71,512 74,501 71,520 72,947 75,384 77,272 81,294 79,548' 77,429 76,113 11 Other 17,944 19,045 24,722 20,792 22,785 24,706 15,461 23,255 24,078 20,071' 19,969 22,015 12 Net worth2 34,833 41,064 42,382 41,353 41,560 42.764 42,503 43,326 43,034 42,423' 40,901 41,019 MEMO 13 Mortgage loan commitments outstanding3 61,305 54,475 57,997 57,200 55,687 53.180 51,163 49,887 48,222 41,650 n.a. n.a. FSLlC-insured federal savings banks 14 Assets 98,559 131,868 164,129 180,124 183,317 186,810 196,225 202,106 204,918 210,562 235,351 235,661 15 Mortgages 57,429 72,355 89,108 99,758 101,755 103,019 108,627 110,826 112,117 113,638 136,707 136,428 16 Mortgage-backed securities. . . . 9,949 15,676 19,829 21,598 23,247 24,097 26,431 27,516 28,324 29,766 33,393 34,457 17 Other 10,971 11,723 15,083 16,774 17,027 17,056 18,509 18,697 19,266 19,034 15,948 16,209 18 Liabilities and net worth 98,559 131,868 164,129 180,124 183,317 186,810 196,225 202,106 204,918 210,562 235,351 235,661 19 Savings capital 79,572 103,462 126,123 138,168 140,610 142,858 149,074 152,834 154,447 157,872 176,722 177,335 n a. 20 Borrowed money 12,798 19,323 25,686 28,502 28,722 29,390 32,319 33,430 33,937 37,329 40,502 39,623 21 FHLBB 7,515 10,510 12,830 15,301 15,866 16,123 16,853 17,382 17,863 19,897 20,730 20,226 22 Other 5,283 8,813 12,856 13,201 12,856 13,267 15,466 16,048 16,074 17,432 19,772 19,397 23 Other 1,903 2,732 4,338 4,279 4,564 4,914 4,666 5,330 5,652 4,263 5,321 5,540 24 Net worth 4,286 6,351 7,982 9,175 9.422 9,647 10,165 10,511 10,883 11,098 12,811 13,165 MEMO 25 Mortgage loan commitments outstanding3 3,234 5,355 8,762 9,410 10,139 9,770 10,221 9,356 9,952 8,686 n.a. n.a. Savings banks 26 Assets 203,898 216,776 226,495 223,367 224,569 227,011 228,854 230,919 232,577 236,866 235,603 238,074 240,739 Loans 27 Mortgage 102,895 110,448 112,417 110,958 111,971 113,265 114,188 116,648 117,612 118,323 119,199 119,737 121,178 28 Other 24,954 30,876 35,500 36,692 36,421 37,350 37,298 36,130 36,149 35,167 36,122 37,207 38,012 Securities 29 U.S. government 14,643 13,111 13,210 12,115 12,297 12,043 12,357 12,585 13,037 14,209 13,332 13,525 13,631 30 Mortgage-backed securities... 19,215 19,481 22,546 22,413 22,954 21,161 23,216 23,437 24,051 25,836 26,220 26,893 27,463 31 State and local government... 2,077 2,323 2,343 2,281 2,309 2,400 2,407 2,347 2,290 2,185 2,180 2,168 2,041 32 Corporate and other 23,747 21,199 20,260 2,036 20,862 20,602 20,902 21,156 20,749 20,459 19,795 19,770 19,598 33 Cash 4,954 6,225 6,225 5,301 4,651 5,018 4,811 5,195 5,052 6,894 5,239 5,143 5,703 34 Other assets 11,413 13,113 13,994 13,244 13,104 13,172 13,675 13,421 13,637 13,793 13,516 13,631 13,713 35 Liabilities 203,898 216,776 226,495 223,367 224,569 227,011 228,854 230,919 232,577 236,866 235,603 238,074 240,739 36 Deposits 180,616 185,972 190,310 189,109 188,615 189,937 190,210 190,334 190,858 192,194 191,441 192,559 193,693 37 Regular4 177,418 181,921 185,716 183,970 183,433 184,764 185,002 185,254 185,958 186,345 186,385 187,597 188,432 38 Ordinary savings 33,739 33,018 33,577 34,008 34,166 34,530 35,227 36,165 36,739 37,717 38,467 39,370 40,558 39 Time 104,732 103,311 105,146 103,083 102,374 102,668 102,191 101,125 101,240 100,809 100,604 100,922 100,896 40 Other 3,198 4,051 4,594 5,139 5,182 5,173 5,208 5,080 4,900 5,849 5,056 4,962 5,261 41 Other liabilities 12,504 17,414 21,384 19,226 20,641 21,360 21,947 23,319 24,254 25,274 24,710 25,663 27,003 42 General reserve accounts 10,510 12,823 14,519 14,731 15,084 15,427 16,319 16,896 17,146 18,105 18,236 18,486 18,830 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.37—Continued 1986 1987 AAccccoouunntt 11998844 11998855 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Credit unions5 43 Total assets/liabilities and capital . 93,036 118,010 132,415 134,703 137,901 139,233 140,4% 143,662 145,653 147,726 44 Federal 63,205 77,861 86,289 87,579 89,539 90,367 91,981 93,257 94,638 95.483 45 State 29,831 40,149 46,126 47,124 48,362 48,866 48,515 50,405 51,015 52,243 46 Loans outstanding 62.561 73,513 76,774 77,847 79,647 80,656 81.820 83,388 84,635 86,137 n a. n a. n a. 47 Federal 42,337 47,933 49,950 50,613 51,331 52,007 53,042 53,434 53,877 55,304 48 State 20,224 25,580 26,824 27,234 28,316 28,649 28,778 29,954 30,758 30,833 49 Savings 84,348 105,963 120,331 122,952 125,331 126,268 128,125 130,483 131,778 134,327 50 Federal 57,539 70,926 79,479 80,975 82,596 83,132 84,607 86,158 87,009 87,954 51 State 26,809 35,037 40,852 41,977 42,735 43,136 43,518 44,325 44,769 46,373 Life insurance companies 52 Assets 722,979 825,901 863,610 872,359 877,919 887,255 892,304 860,682 910,691 920,771 931,962 Securities 53 Government 63,899 75,230 79,051 78,284 78,722 79,188 81,636 82,047 84,858 85,849 85,000 54 United States6 42,204 51,700 55,120 54,197 54,321 54,487 56,698 57,511 59,802 61,494 61,014 55 State and local 8,713 9,708 9,930 10,114 10,350 10,472 10,606 10,212 10,712 10,267 10,048 56 Foreign7 12,982 13,822 14,001 13,973 14,051 14,229 14,332 14,324 14,344 14,088 13,938 n a. n a. 57 Business 359,333 423,712 450,279 455,119 455,013 463,135 462,540 467,433 473,860 474,485 487,837 58 Bonds 295,998 346,216 364,122 367,966 369,704 374,670 378,267 381,381 386,293 386,994 395,994 59 Stocks 63,335 77,496 86,157 87,153 85,309 88,465 84.273 86,052 87,567 87,491 91,843 60 Mortgages 156,699 171,797 177,554 180,041 182,542 183,943 185,268 186,976 189,460 192,975 193,395 61 Real estate 25,767 28,822 30,025 30,350 31,151 31,844 31,725 31,918 32,184 32,079 32,229 62 Policy loans 54,505 54,369 54,351 57,342 54,249 54,247 54.273 54,199 54,152 54,016 53,692 63 Other assets 63,776 71,971 72,352 74,223 76,214 74,898 76,862 77,798 76,177 81,367 79,809 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." FSLlC-insured federal savings banks: Estimates by the FHLBB for federal 2. .includes net undistributed income accrued by most associations. savings banks insured by the FSLIC 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

A44 Domestic NonfinancialS tatistics • August 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 1987 111999888444 111999888555 111999888666 Dec. Jan. Feb. Mar. Apr. May U.S. budget1 1 Receipts, total 666.457 734.057 769,091 78,035 81,771 55,463 56,515 122,897 47,691 •> On-budget 500.382 547,886 568,862 60,694 62,981 37,919 38,469 99,083 30,205 3 Off-budget 166,075 186,171 200,228 17,341 18,790 17,544 18,046 23,814 17,486 4 Outlays, total 851.781 946,316 989,815 89,158 83,942 83,828 84,527 84,240 83,435 5 On-budget 685,968 769,509 806.318 74,669 68,176 67,138 67,872 69,215 66,389 6 Off-budget 165,813 176,807 183,498 14,489 15,766 16,690 16,655 15,025 17,046 V Surplus, or deficit (-), total -185,324 -212,260 -220.725 -11,123 -2,170 -28,366 -28,012 38,657 -35,744 8 On-budget -185,586 -221,623 -237.455 -13,976 -5,195 -29.219 -29,403 29,867 -36,184 9 Off-budget 262 9.363 16.371 2.853 3,024 854 1,391 8.790 440 Source of financing (total) 10 Borrowing from the public 170,817 197,269 236.284 22,824 4,353 15,248 7,884 9,075 13,005 11 Cash and monetary assets (decrease, or increase (-))2 6,631 13.367 -14.324 -14,751 -9,564 16,574 15,621 -47,189 24.217 12 Other3 7,875 1,630 -1.235 4,004 7,381 -3,456 4,506 -543 -1,478 MEMO 13 Treasury operating balance (level, end of period) 30,426 17.060 31,384 30,946 41,307 24,816 8,969 55,744 33,106 14 Federal Reserve Banks 8,514 4.174 7,514 7,588 15,746 3,482 3,576 29,688 6,383 15 Tax and loan accounts 21,913 12.886 23.870 23,357 25,561 21,334 5,394 26,056 26,723 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 SOURCES. "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 Budget of the U.S. Government. and monetary assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Source or type year year 1985 1986 1987 1985 1986 HI H2 HI H2 Mar. Apr. May RECEIPTS 1 All sources 734,057 769,091 380,618 364,790 394,345 387,524 56,515 122,897 47,691 ? Individual income taxes, net 334,531 348,959 166,783 169,987 169,444 183,156 14,240 71,850 9,275 3 Withheld 298,941 314,838 149,288 155,725 153,919 164,071 27,608 26,943 24,823 4 Presidential Election Campaign Fund ... 35 36 29 6 31 4 10 7 7 5 Non withheld 101,328 105,994 76,155 22,295 78,981 27,733 4,106 62,939 7,228 6 Refunds 65,743 71,873 58,684 8,038 63,488 8,652 17,482 18,039 22,782 Corporation income taxes 7 Gross receipts 77,413 80,442 42,193 36,528 41,946 42,108 15,948 13,290 2,885 8 Refunds 16,082 17,298 8,370 7,751 9,557 8,230 2,834 2,101 1,042 9 Social insurance taxes and contributions. net 265,163 283,901 144,598 128,017 156,714 134,006 23,689 33,646 30,218 10 Employment taxes and contributions' 234,646 255,062 126,038 116,276 139,706 122,246 23,128 30,457 22,270 11 Self-employment taxes and contributions2 10,468 11,840 9,482 985 10,581 1,338 669 7,403 732 1? Unemployment insurance 25,758 24,098 16,213 9,281 14,674 9,328 186 2,827 7,529 13 Other net receipts3 4,759 4,742 2,350 2,458 2,333 2,429 375 361 419 14 Excise taxes 35,992 32,919 17,259 18,470 15,944 15,947 2,511 2,471 2,633 15 Customs deposits 12,079 13,323 5,807 6,354 6,369 7,282 1,220 1,165 1,142 16 Estate and gift taxes 6,422 6,958 3,204 3,323 3,487 3,649 570 810 726 17 Miscellaneous receipts4 18,539 19,887 9,144 9,861 10,002 9,605 1,171 1,767 1,853 OUTLAYS 18 All types 946,223 989,789 463,842 487,188 486,037 504,785 84,527 84,240 83,435 19 National defense 252,748 273,369 124,186 134,675 135,367 138,544 24,742 24,407 23,471 70 International affairs 16,176 14,471 6,675 8,367 5,384 8,876 681 163 831 21 General science, space, and technology ... 8,627 9,017 4,230 4,727 12,519 4,594 703 653 779 2? Energy 5,685 4,792 680 3,305 2,484 2,735 441 361 356 73 Natural resources and environment 13,357 13,508 5,892 7,553 6,245 7,141 1,092 1,052 985 24 Agriculture 25,565 31,169 11,705 15,412 14,482 16,160 2,453 2,641 716 75 Commerce and housing credit 4,229 4,258 -260 644 860 3,647 1,677 1,129 997 26 Transportation 25,838 28,058 11,440 15,360 12,658 14,745 1,982 1,936 2,089 27 Community and regional development .... 7,680 7,510 3,408 3,901 3,169 3,494 490 592 585 28 Education, training, employment, social services 29,342 29,662 14,149 14,481 14,712 15,268 2,440 2,317 2,255 79 Health 33,542 35,936 16,945 17,237 17,872 19,814 3,263 3,672 3,544 30 Social security and medicare 254,446 190,850 128,351 129,037 135,214 138,296 23,407 23,615 23,782 31 Income security 128,200 120,686 65,246 59,457 60,786 59,628 10,910 11,282 10,273 37 Veterans benefits and services 26,352 26,614 11,956 14,527 12,193 14,497 1,137 2,360 2,047 33 Administration of justice 6,277 6,555 3,016 3,212 3,352 3,360 570 619 646 34 General government 5,228 6,796 2,857 3,634 3,566 2,786 439 196 358 35 General-purpose fiscal assistance 6,353 6,430 2,659 3,391 2,179 2,767 61 179 62 36 Net interest5 129,436 135,284 65,143 67,448 68,054 65,816 10,971 11,295 12,284 37 Undistributed offsetting receipts6 -32,759 -33,244 -14,436 -17,953 -17,193 -17,426 -2,932 -4,230 -2,626 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 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • August 1987 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1985 1986 1987 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 1,715.1 1.779.0 1,827.5 1,950.3 1,991.1 2,063.6 2,129.5 2,218.9 2,250.7 ~> Public debt securities 1,710.7 1.774.6 1,823.1 1,945.9 1,986.8 2,059.3 2,125.3 2,214.8 2,246.7 3 Held by public 1,415.2 1,460.5 1,506.6 1,597.1 1,634.3 1,684.9 1,742.4 1,811.7 1,839.3 4 Held by agencies 295.5 314.2 316.5 348.9 352.6 374.4 382.9 403.1 407.5 Agency securities 4.4 4.4 4.4 4.4 4.3 4.3 4.2 4.0 4.0 6 Held by public 3.3 3.3 3.3 3.3 3.2 3.2 3.2 3.0 2.9 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 1,711.4 1,775.3 1,823.8 1,932.4 1,973.3 2,060.0 2,111.0 2,200.5 2,232.4 9 Public debt securities 1,710.1 1,774.0 1,822.5 1.931.1 1,972.0 2.058.7 2,109.7 2,199.3 2,231.1 10 Other debt1 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,823.8 1,823.8 1.823.8 2,078.7 2,078.7 2,078.7 2.111.0 2,300.0 2,300.0 1. Includes guaranteed debt of government agencies, specified participation SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the certificates, notes to international lending organizations, and District of Columbia United States. stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1986 1987 TTyyppee aanndd hhoollddeerr 11998833 11998844 11998855 11998866 Q2 Q3 Q4 Ql 1 Total gross public debt 1,410.7 1,663.0 1,945.9 2,214.8 2,059.3 2,125.3 2,214.8 2,246.7 Bv txpe i Interest-bearing debt 1,400.9 1.660.6 1,943.4 2,212.0 2,056.7 2.122.7 2,212.0 2,244.0 3 Marketable 1.050.9 1,247.4 1,437.7 1,619.0 1,498.2 1,564.3 1,619.0 1,635.7 4 Bills 343.8 374.4 399.9 426.7 396.9 410.7 426.7 406.2 5 Notes 573.4 705.1 812.5 927.5 869.3 896.9 927.5 955.3 6 Bonds 133.7 167.9 211.1 249.8 232.3 241.7 249.8 259.3 7 Nonmarketable1 350.0 413.2 505.7 593.1 558.5 558.4 593.1 608.3 8 State and local government series 36.7 44.4 87.5 110.5 98.2 102.4 110.5 118.5 9 Foreign issues- 10.4 9.1 7.5 4.7 5.3 4.1 4.7 4.9 10 Government 10.4 9.1 7.5 4.7 5.3 4.1 4.7 4.9 11 Public .0 .0 .0 .0 .0 .0 .0 .0 1? Savings bonds and notes 70.7 73.1 78.1 90.6 82.3 85.6 90.6 93.0 13 Government account series' 231.9 286.2 332.2 386.9 372.3 365.9 386.9 391.4 14 Non-interest-bearing debt 9.8 2.3 2.5 2.8 2.6 2.6 2.8 2.7 Bv holder4 IS U.S. government agencies and trust funds 236.3 289.6 348.9 403.1 374.4 382.9 403.1 407.5 16 Federal Reserve Banks 151.9 160.9 181.3 211.3 183.8 190.8 211.3 196.4 17 Private investors 1,022.6 1,212.5 1,417.2 1,602.0 1,502.7 1,553.3 1,602.0 1,641.4 18 Commercial banks 188.8 183.4 192.2 225.0 197.2 212.5 225.0 232.0 19 Money market funds 22.8 25.9 25.1 28.6 22.8 24.9 28.6 18.8 70 Insurance companies 56.7 76.4 95.8'' 106.9 97.7 100.9 106.9 n.a. 71 Other companies 39.7 50.1 59.0 68.8 61.2' 65.7' 68.8 72.1 ~>~t State and local governments 155.1 179.4 235.8 273.1 239.8 256.4 273.1 n.a. Individuals 23 Savings bonds 71.5 74.5 79.8 92.3 83.8 87.1 92.3 94.7 74 Other securities 61.9 69.3 75.0 70.4' 75.7'' 70.9' 70.4'' 68.4 75 Foreign and international5 166.3 192.9 214.6 257.0 239.8 256.4 255.6 272.1 26 Other miscellaneous investors6 259.8 360.6 439.9 476.2 469.2 474.7 476.2 n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes nontion Administration: depository bonds, retirement plan bonds, and individual interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated se- mutual savings banks, corporate pension trust funds, dealers and brokers, certain ries held by foreigners. U.S. government deposit accounts, and U.S. government-sponsored agencies. 3. Held almost entirely by U.S. government agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. government agencies and trust Statement of the Public Debt of the United States; data by holder, Treasuryfunds 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 1987 1987 IItteemm 11998844 11998855 11998866 Mar. Apr. May Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 Immediate delivery2 1 U.S. government securities 52,778 75,331 95,447 102,209 138,007 116,376 142,263 135,360 111,829 117,762 121,141 117,483 By maturity 2 Bills 26,035 32,900 34,249 37,027 50,528 36,913 52,915 45,951 38,268 34,077 39,326 37,347 3 Other within 1 year 1,305 1,811 2,115 2,647 3,190 3,084 3,262 3,485 2,720 3,628 3,081 3,055 4 1-5 years 11,733 18,361 24,667 24,322 29,094 30,979 30,550 29,460 28,390 27,572 35,876 33,065 5 5-10 years 7,606 12,703 20,455 22,444 31,476 22,716 30,883 32,297 22,563 22,776 20,788 23,522 6 Over 10 years 6,099 9,556 13,961 15,769 23,718 22,684 24,652 24,167 19,888 29,709 22,071 20,495 By type of customer 7 U.S. government securities dealers 2,919 3,336 3,646 3,506 3,113 2,801 2,678 3,134 3,018 3,128 2,939 2,007 8 U.S. government securities brokers 25,580 36,222 49,368 52,671 78,533 63,089 80,973 79,222 63,279 66,294 65,532 61,457 9 All others3 24,278 35,773 42,218 45,446 55,648 49,808 58,611 53,004 45,532 48,340 52,668 54,018 10 Federal agency securities 7,846 11,640 16,746 20,984 22,184 19,694 28,811 17,516 17,748 15,630 22,630 24,729 11 Certificates of deposit 4,947 4,016 4,355 3,570 4,964 3,880 5,344 4,553 3,608 3,320 3,832 4,733 12 Bankers acceptances 3,243 3,242 3,272 2,917 3,453 2,762 3,605 3,166 2,478 2,534 2,999 3,040 13 Commercial paper 10,018 12,717 16,660 15,489 17,914 18,375 21,206 18,625 19,487 15,436 19,638 18,606 Futures transactions4 14 Treasury bills 6,947 5,561 3,311 3,577 3,575 4,128 4,240 3,092 4,137 4,000 3,891 5,406 15 Treasury coupons 4,533 6,085 7,175 6,891 12,018 10,374 11,497 13,109 11,404 9,696 11,733 9,579 16 Federal agency securities 264 252 16 9 1 6 0 0 0 0 0 13 Forward transactions5 17 U.S. government securities 1,364 1,283 1,876 1,952 2,760 2,840 4,591 2,476 4,267 2,672 2,272 2,534 18 Federal agency securities 2,843 3,857 7,830 10,656 15,961 11,951 20,145 11,921 9,364 10,960 16,074 14,021 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

A44 Domestic Nonfinancial Statistics • August 1987 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing' Averages of daily figures, in millions of dollars 1987 1987 iyo4 1 Vo. Mar. Apr/ May Apr. 29 May 6 May 15 May 20 May 27 Positions Net immediate2 1 U.S. government securities 5,429 7.391 13,055' 7,840 -6,965 -13,454 -16,831' -19,068 -11,852 -14.035 -11,021 •> Bills 5.500 10,075 12.723 7,070 -779 -5,937 -6,448 -8,007 -5,110 -6.170 -6.010 3 Other within 1 year 63 1,050 3,699' 3,513 3,076 3.530 2,794' 3.643 3,340 3,681 3,486 4 1-5 years 2,159 5,154 9.297 7,451 2,519 1,074 2,224 -40 1,427 -378 3,486 5 5-10 years -1,119 -6,202 -9,504' -5,208 -5,944 -7,644 -8,803' -8,908 -6,935 -6,965 -8,549 6 Over 10 years -1,174 -2,686 -3.161' -4.986 -5,836 -4,477 -6,599' -5,756 -4,574 -4,202 -3,434 7 Federal agency securities 15,294 22,860 33.066' 33,296 32.863 32,766 31,430' 30,648 32,498 35.362 32,660 8 Certificates of deposit 7,369 9,192 10.533 8,615 8.502 8.990 8,818 8,836 8,972 8.922 9,153 9 Bankers acceptances 3,874 4,586 5.535' 5.015 3.694 3,714 3,154 3,089 4,181 4,019 3,503 10 Commercial paper 3,788 5,570 8.087 8,954 6.258 6,591 6,449' 6,762 6,550 6,713 6,279 Futures positions 11 Treasury bills -4,525 -7,322 -18.062 -10,805 -5,004 1,789 -3.465' -880 1,310 2.285 3,716 12 Treasury coupons 1,794 4.465 3.489' 4,313 3.936 2,612 3,586 3,530 2,553 2.544 2,211 13 Federal agency securities 233 -722 -153 -98 -95 -98 -96 -98 -98 -98 -98 Forward positions 14 U.S. government securities -1,643 -911 -2,304 -2.151 -2,386 -4.305 -2,996 -3,784 -3,939 -5,607 -4,789 15 Federal agency securities -9,205 -9,420 -11,909' -16,703 -15.767 -20,297 -15,369' -17,688 -20,669 -22,650 -20,181 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 44,078 68,035 98.954 127,183 129,443 n.a. 125,916 122,241 116,064 120,745 124,737 17 Term agreements 68,357 80,509 108,693 130,489 133,833 n.a. 149,607 148,645 154,191 152,715 150,494 Repurchase agreements5 18 Overnight and continuing 75.717 101,410 141.735 177,021 176.340 n.a. 170,842 162,337 154,942 167,444 173,210 19 Term agreements 57,047 70,076 102,640 112,078 108,841 n.a. 122,608 119,105 131,012 124,198 124,105 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 1987 AAggeennccyy 11998833 11998844 11998855 Nov. Dec. Jan. Feb. Mar. Apr. 1 Federal and federally sponsored agencies 240,068 271,220 293,905 305,097 307,361 305,114 305,603 n.a. 2 Federal agencies 33,940 35,145 36,390 36,952 36,958 37.041 37,073' 36,660 Defense Department1 243 142 71 35 33 32 27 24 Export-Import Bank2 3 14,853 15,882 15,678 14,274 14,211 14.211 14,211 13,813 Federal Housing Administration4 194 133 115 124 138 136 147 158 n a. 6 Government National Mortgage Association participation certificates 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 3,104 3,104 3,104 3,104 3,104 8 Tennessee Valley Authority 14,970 15,435 16,347 17,176 17,222 17,308 17,334' 17,311 9 United States Railway Association6 111 51 74 74 85 85 85 85 10 Federally sponsored agencies7 206,128 236,075 257,515 268,145 270,403 268,073 268,530 n.a. 11 Federal Home Loan Banks 48,930 65,085 74,447 86,891 88,752 90,225 91,313 92,087 94,606 17 Federal Home Loan Mortgage Corporation 6,793 10,270 11,926 13,606 13,589 13,492 13,847 n.a. n. a. 13 Federal National Mortgage Association 74,594 83,720 93.896 93,477 93,563 92,588 91,522 91,618 89,741 14 Farm Credit Banks 72,816 71,193 68.851 62,693 62,328 59,984 59,367 58,364 57,251 15 Student Loan Marketing Association 3,402 5,745 8,395 11,478 12,171 11,784 12.481 13,230 n.a. MEMO 16 Federal Financing Bank debt" 135,791 145,217 153,373 157,452 157,510 157,650 157,724 157,012 Lending to federal and federally sponsored 17 Export-Import Bank 14,789 15,852 15,670 14,268 14,205 14,205' 14,205 13,807 18 Postal Service6 1,154 1,087 1,690 2,854 2,854 2,854 2,854 2,854 19 Student Loan Marketing Association 5.000 5,000 5,000 4.970 4,970 4,970 4,970 4,970 n. a. 20 Tennessee Valley Authority 13.245 13,710 14,622 15,751 15,797 15,928 15,954 15,931 21 United States Railway Association6 111 51 74 74 85 85 85 85 Other Lending10 2? Farmers Home Administration 55,266 58,971 64,234 65,374 65,374 65,374 65,374 65,224 23 Rural Electrification Administration 19,766 20,693 20,654 21,531 21,680 21,719 21,749 21,473 24 Other 26,460 29.853 31,429 32,630 32,545 32,515 32,533 32,668 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 Admin- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter istration; 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

A44 Domestic NonfinancialS tatistics • August 1987 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1986' 1987 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998844 11998855 11998866 Oct. Nov. Dec. Jan.' Feb/ Mar.' Apr.' May 1 All issues, new and refunding1 106,641 214.189 134,606 9.524 11,010 15,662 7,343 8,969 14,591 6,854 5,453 Tvpe of issue 2 General obligation 26,485 52,622 44,80/ 2,390 1,607 4,426 1,100 3,643 3,853 3,449 2,713 3 Revenue 80.156 161,567 89,806 7.134 9.403 11,236 6,243 5,325 10,738 3,405 2,740 Tvpe of issuer 4 State 9,129 13,004 14,935 127 6 961 153 1,364 1,217 427 978 3 Special district and statutory authority2 63,550 134,363 79,291 6.265 8,124 10,431 5,275 5,825 10,004 4,790 2,530 6 Municipalities, counties, townships 33,962 66,822 40,374 2,562 2,759 4,265 1,915 1,781 3,370 1,637 1,946 7 Issues for new capital, total 94,050 156,050 79,195 3,319 4.220 10,050 1,930 2,774 4,480 3,237 3,944 Use of proceeds 8 Education 7,553 16,658 16,948 530 566 925 452 448 659 774 643 9 Transportation 7,552 12,070 11,666 661 843 356 92 145 111 98 109 10 Utilities and conservation 17,844 26,852 35,383 336 671 1,165 681 482 444 571 591 11 Social welfare 29,928 63,181 17,332 1.175 2.931 3.944 380 527 991 468 376 12 Industrial aid 15,415 12,892 5,594 184 483 2,845 38 89 368 33 47 13 Other purposes 15,758 24,398 47,433 772 483 1,829 286 1,084 1,907 1,295 2,178 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 1987 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998844 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb. Mar.' Apr. 1 All issues1 132,531 201,269' 375,056' 16,093 28,577' 28,822' 25,168' 23,165' 24,053' 33,089 21,703 2 Bonds2 109,903 165,754' 313,226' 12,830 23,471' 22,223' 18,920' 20,25C 20,286' 23,279 17,527 Type of offering 3 Public 73,579 119,559 232,465' 12,829 23,471' 22,22V 18,920' 20,250' 20,286' 23,279 17,527 4 Private placement' 36,324 46,195 80,761 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 3 Manufacturing 24,607 52,128 78,584' 2,345 2.055 3,378 3.786' 4,165 3,679 6,349 2,184 6 Commercial and miscellaneous 13,726 15,140 37.277' 1,387 1.067 1,213 2,067 1,074 1,714 3,723 1,308 / Transportation 4,694 5,743 9,734' 375 170 0 70 0 100 521 168 8 Public utility 10,679 12.957 31,058' 1.915 2.537 2,587 2,498 1,491 2,715 694 1,360 9 Communication 2,997 10,456 15,489' 417 1,255 1,158 776 65 250 300 100 10 Real estate and financial 53,199 69,332 141,086' 6,390 16,387' 13,888' 9,723' 13,455' 11,829' 11,693 12,407 II Stocks 22,628 35,515 61,830 3,263 5,106 6,599 6,248 2,915 3,767 9,810 4,176 Tvpe 12 Preferred 4,118 6,505 11,514 402 817 1,390 1,293 429 905 2,257 530 13 Common 18,510 29,010 50,316 2,861 4.289 5,209 4,955 2,486 2,862 7,553 3,646 Industry group 14 Manufacturing 4,054 5,700 14,234 250 570 2,565 1,781 365 814 2,016 770 15 Commercial and miscellaneous 6.277 9,149 9,252 1,009 1,271 535 709 148 437 2,366 2,163 16 Transportation 589 1,544 2,392 28 511 15 183 0 191 299 216 IV Public utility 1,624 1,966 3,791 174 410 218 873 237 509 907 189 18 Communication 419 978 1,504 0 59 104 101 16 9 57 18 19 Real estate and financial 9,665 16,178 30,657 1.802 2.285 3,162 2,601 2,149 1,807 4,165 820 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. Data are not available on a monthly basis. multiplied by offering price. Excludes offerings of less than $100,000, secondary SOURCES. 1DD Information Services, Inc., U.S. Securities and Exchange offerings, undefined or exempted issues as defined in the Securities Act of 1933, Commission and the Board of Governors of the Federal Reserve System. employee stock plans, investment companies other than closed-end, intracorporate 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 1987 IItteemm 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. INVESTMENT COMPANIES' 1 Sales of own shares2 .: 222,670 411,739 34,690 37,150 33,672 44,796 50,116 36,307 40,378 42,773 2 Redemptions of own shares3 132,440 239,396 21,338 20,782 20,724 34,835 26,565 21,576 24,730 37,127 3 Net sales 90,230 172,343 13,352 16,368 12,948 9,961 23,551 14,731 15,648 5,646 4 Assets4 251,695 424,156 381,872 402,644 416,939 424,156 464,415 490,643 506,752 499,086 5 Cash position5 20,607 30,716 29,540 30,826 29,579 30,716 34,098 35,279 37,090 45,031 6 Other 231,088 393,440 352,332 371,818 387,360 393,440 430,317 455,364 469,662 454,055 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. 1985 1986 1987 AAccccoouunntt 11998844 11998855 11998866 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QK 1 Corporate profits with inventory valuation and capital consumption adjustment 264.7 280.6 300.7 274.3 296.3 285.6 296.4 293.1 302.0 311.2 335.4 ? Profits before tax 235.7 223.1 237.5 213.8 229.2 235.8 222.5 227.7 240.4 259.6 267.6 3 Profits tax liability 95.4 91.8 103.5 87.1 95.8 96.4 95.7 99.0 104.4 115.1 128.8 4 Profits after tax 140.3 131.4 134.0 126.7 133.4 139.4 126.9 128.8 135.9 144.5 138.8 5 Dividends 78.3 81.6 87.8 81.4 81.6 82.5 85.2 87.5 88.8 89.7 91.4 6 Undistributed profits 62.0 49.8 46.2 45.3 51.8 57.0 41.7 41.2 47.2 54.8 47.4 7 Inventory valuation -5.5 -.6 6.5 1.6 6.1 -9.4 16.5 10.6 6.1 -7.2 -6.9 8 Capital consumption adjustment 34.5 58.1 56.6 58.9 61.0 59.2 57.3 54.8 55.5 58.8 74.7 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic NonfinancialS tatistics • August 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 ratio2 1.492 1.462 1.458 1.487 1.464 1.467 1.466 1.455 1.447 1.469 1. For a description of this series, see "Working Capital of Nonfinancial 2. Ratio of total current assets to total current liabilities. Corporations" in the July 1978 BULLETIN, pp. 533-37. Data are not currently SOURCE. Federal Trade Commission and Bureau of the Census, available after 1986:1. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1985 1986 1987 IInndduussttrryy 11998855 11998866 11998877'' ••'' Q4 Q1 Q2 Q3 Q4 Ql Q2> Q3> 1 Total nonfarm business 387.13 379.27r 390.89 397.88 377.94 375.92 374.55 388.69 372.24 392.02 397.06 Manufacturing i Durable goods industries 73.27 69.08 70.86 75.47 68.01 68.33 69.31 70.68 69.72 73.06 71.84 3 Nondurable goods industries 80.21 73.65 75.05 82.79 76.02 73.35 69.89 75.33 69.65 73.83 76.61 Nonmanufacturing 4 Mining 15.88 11.25 10.45 15.25 12.99 11.22 10.15 10.63 10.17 10.85 10.60 Transportation s Railroad 7.08 6.63 6.06 6.74 6.22 6.77 7.31 6.25 5.29 6.32 6.84 6 Air 4.79 6.26 6.76 6.07 6.58 5.77 5.69 6.99 7.55 6.76 6.36 7 Other 6.15 5.86 6.58 6.34 5.42 5.74 6.03 6.24 5.93 6.39 6.82 Public utilities 8 Electric 36.11 33.93 32.93 36.38 34.21 33.81 33.91 33.78 30.81 33.51 33.97 9 Gas and other 12.71 12.51 12.71 13.41 12.82 12.74 11.99 12.49 12.63 12.43 12.82 10 Commercial and other2 150.93 160.10 169.50 155.42 155.67 158.18 160.25 166.31 160.49 168.86 171.19 ATrade 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 1987 AAccccoouunntt 11998822 11998833 11998844 Q3 Q4 Qi Q2 Q3 Q4 Qi ASSETS Accounts receivable, gross 1 75.3 83.3 89.9 108.6 113.4 117.2 125.1 137.1 136.5 133.9 1 100.4 113.4 137.8 143.7 158.3 165.9 167.7 161.0 174.8 182.8 3 18.7 20.5 23.8 26.3 28.9 29.9 30.8 32.1 33.7 35.1 4 Total 194.3 217.3 251.5 278.6 300.6 312.9 323.6 330.2 345.0 351.8 Less: 55 29.9 30.3 33.8 38.0 39.2 40.0 40.7 42.4 41.4 40.4 66 3.3 3.7 4.2 4.6 4.9 5.0 5.1 5.4 5.8 5.9 7 161.1 183.2 213.5 236.0 256.5 268.0 277.8 282.4 297.8 305.5 X 30.4 34.4 35.7 46.3 45.3 48.8 48.8 59.9 57.9 59.0 9 119911..55 217.6 249.2 282.3 301.9 316.8 326.6 342.3 355.6 364.5 LIABILITIES 10 16.5 18.3 20.0 18.9 20.6 19.0 19.2 20.2 ji i 17.3 11 51.4 60.5 73.1 93.2 99.2 104.3 108.4 112.8 117.8 119.1 Debt 1122 11.9 11.1 12.9 12.4 12.5 13.4 15.4 16.0 17.2 21.6 1133 63.7 67.7 77.2 85.5 93.1 101.0 105.2 109.8 115.6 118.4 14 21.6 31.2 34.5 38.2 40.9 42.3 40.1 44.1 43.4 46.3 111555 26.4 28.9 31.5 34.1 35.7 36.7 38.4 39.4 39.4 41.8 111666 119911..55 221177..66 249.2 282.3 301.9 316.8 326.6 342.3 355.6 364.5 NOTE. Components may not add to totals because of rounding. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted AAAccccccooouuunnntttsss Chang re es c e i i n v a a b c le c ounts Extensions Repayments rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuu AAA tttsss ppp ttt rrr aaa ... nnn 333 ddd 000 iiinnn ,,, ggg 1987 1987 1987 111999888777111 Feb. Mar. Apr. Feb. Mar. Apr. Feb. Mar. Apr. 1 185,182 1,850 1,579 3,534 28,193 29,836 29,212 26,342 28,257 25,678 i Retail financing of installment sales Automotive (commercial vehicles) 27,520 602 570 750 1,036 1.138 1,200 434 568 449 3 Business, industrial, and farm equipment 22,327 -429 -40 4 1.067 1,255 1,352 1,496 1.295 1.349 Wholesale financing 4 Automotive 30,075 -1.081 995 620 11.573 12.676 11,474 10.492 11,681 10.854 5 Equipment 5,365 31 -235 76 658 672 690 626 907 614 6 All other 8,846 -41 269 -25 2,919 3.064 3,056 2,960 2,795 3.082 Leasing 7 Automotive 20,507 161 77 515 1,259 1.148 1,136 1.099 1.071 622 8 Equipment 39,639 121 440 582 885 995 970 764 555 388 9 Loans on commercial accounts receivable and factored commercial accounts receivable 16,741 238 -652 723 7,619 7.664 8,122 7.381 8.316 7,399 10 All other business credit 14,162 86 155 290 1,177 1.224 1,211 1.092 1,069 921 These data also appear in the Board's G.20 (422) release. For address, see 1. Not seasonally adjusted, inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A.38 Domestic Financial Statistics • August 1987 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1986 1987 tyoo Nov. Dec. Jan. Feb. Mar. Apr. May Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 96.8 104.1 118.1 124.2 124.8 132.6 135.6 130.2 136.9' 133.7 2 Amount of loan (thousands of dollars) 73.7 77.4 86.2 92.5 93.2 97.3 99.1 95.0 100.9' 100.0 3 Loan/price ratio (percent) 78.7 77.1 75.2 76.2 76.4 75.5 75.3 74.3 75.2' 76.2 4 Maturity (years) 27.8 26.9 26.6 27.3 27.4 27.7 27.6 27.1 27.1' 28.2 5 Fees and charges (percent of loan amount)- 2.64 2.53 2.48 2.64 2.46 2.23 2.21 2.20 2.23' 2.34 6 Contract rate (percent per annum) 11.87 11.12 9.82 9.45 9.28 9.14 8.87 8.77 8.84' 9.07 Yield (percent per annum) 7 FHLBB series' 12.37 11.58 10.25 9.91 9.69 9.51 9.23 9.14 9.21' 9.46 8 HUD series4 13.80 12.28 10.07 9.47 9.33 9.09 9.04 9.19 10.11 n.a. SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 13.81 12.24 9.91 9.26 9.21 8.79 8.81 8.94 10.02 n.a. 10 GNMA securities6 13.13 11.61 9.30 8.83 8.62 8.46 8.28 8.18 8.85 9.40 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 83.339 94.574 98,048 98,210 97,895 96,382 95,514 95,140 94.404 94,064 12 FHA/VA-insured 35.148 34,244 29.683 24,300 23,121 22,178 22,063 21,843 21,765 21,999 13 Conventional 48.191 60,331 68,365 73.910 74,774 74,204 73.451 73,297 72,639 72,065 Mortgage transactions (during period) 14 Purchases 16.721 21,510 30,826 2,549 2,336 1,346 979 1,435 2,118 1,718 Mortgage commitments7 15 Contracted (during period) 21,007 20,155 32,987 1,811 1,272 948 912 2,805 3,208 1,726 16 Outstanding (end of period) 6,384 3.402 3,386 4,625 3,386 2,258 2,175 3,539 4,421 4,410 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 9,283 12.399 13,517 12,315 11,564 10,964 11,363 18 FHA/VA 910 841 746 707 694 686 686 19 Conventional 8.373 11,558 12.837 11.607 10,870 10,279 10,677 Mortgage transactions (during period) 20 Purchases 21,886 44,012 103.474 9.862 11,305 7,950 7,961 n a. n a. n.a. 21 Sales 18,506 38,905 100,236 10,510 11,169 8,269 7,840 Mortgage commitments9 22 Contracted (during period) 32,603 48.989 110,855 11,233 8,742 7,685 9,197 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associamajor institutional lender groups; compiled by the Federal Home Loan Bank tion guaranteed, mortgage-backed, fully modified pass-through securities, assum- Board in cooperation with the Federal Deposit Insurance Corporation. ing prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the 2. Includes all fees, commissions, discounts, and "points" paid (by the prevailing ceiling rate. Monthly figures are averages of Friday figures from the borrower or the seller) to obtain a loan. Wall Street Journal. 3. Average effective interest rates on loans closed, assuming prepayment at the 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to I- 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 OUTSTANDING1 Millions of dollars, end of period 1986 1987 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998844 11998855 11998866 Ql Q2 Q3 Q4 Qi 1 All holders 2,033,654 2,266,923 2,566,386r 2,315,962 2,383,989 2,469,796' 2,566,386' 2,625,342' 2 1- to 4-family 1,317,940 1,466,773 1,667,055' 1,494,603 1,543,681 1,607,113' 1,667,055' 1,711,106' 3 Multifamily 185,414 213,816 246,925' 221,587 229,145 237,410' 246,925' 250,254' 4 Commercial 418,300 480,719 554,733' 495.879 509,574 525,122' 554,733' 567,980' 5 Farm 112,000 105,615 97,673' 103,893 101,589 100,151' 97,673' 96.002' 6 Selected financial institutions 1,269.702 1,390,394 1,508,599' 1,408,665 1,435,437 1,464,213' 1,508,599' 1,525,130' 7 Commercial banks2 379,498 429,196 502,534' 441,096 456,163 474,658' 502,534' 518,998' 8 1- to 4-family 196,163 213,434 235,814' 216,290 221,640 228,593' 235,814' 241,871' 9 Multifamily 20.264 23,373 31,173' 25,389 26,799 28,623' 31,173' 31,869' 10 Commercial 152,894 181,032 222,799' 187,620 195,484 204,996' 222,799' 232,000' II Farm 10,177 11,357 12,748' 11,797 12,240 12,446' 12,748' 13,258' 12 Savings banks 154,441 177,263 226.409' 188,154 203.398 215,036 226,409' 227,087' 13 1- to 4-family 107,302 121,879 156,236' 131,381 142,174 149,786 156,236' 156,683' 14 Multifamily 19,817 23.329 30,476' 23,980 26,543 28,400 30,476' 30,574' IS Commercial 27,291 31,973 39,592' 32,707 34,577 36,762 39,592' 39,725' 16 Farm 31 82 105' 86 104 88 105' 105' 17 Savings and loan associations 555,277 583,236 553,080 574,732 565,037 557,139 553,080 547,383' 18 1- to 4-family 421,489 432,422 403,611 420,073 413,865 408,152 403,611 399,042' 19 Multifamily 55,750 66,410 66,898 67,140 66,020 65,827 66,898 66,781' 20 Commercial 77,605 83,798 82,070 86,860 84,618 82,644 82,070 81,122' 21 Farm 433 606 501 659 534 516 501 438' 22 Life insurance companies 156,699 171,797 192,975 174,823 180,041 185,269 192,975 196,575 23 1- to 4-family 14,120 12,381 12,763 12,605 12,608 12.927 12,763 12,763 24 Multifamily 18.938 19,894 20,847 20,009 20,181 20,709 20,847 20,997 Commercial 111,175 127,670 148,367 130,569 135,924 140,213 148,367 151,867 26 Farm 12,466 11,852 10,998 11,640 11,328 11,420 10,998 10,948 27 Finance companies' 23,787 28,902 33,601 29,860 30,798 32,111 33,601 35,087' 28 Federal and related agencies 158,993 166,928 203,800 165,041 161,398 159,505 203,800 198,728' 29 Government National Mortgage Association 2,301 1,473 889 1,533 876 887 889 846 30 1- to 4-family 585 539 47 527 49 48 47 46 31 Multifamily 1.716 934 842 1,006 827 839 842 800 32 Farmers Home Administration4 1,276 733 48,421 704 570 457 48,421 48,203' 33 I- to 4-family 213 183 21,625 217 146 132 21,625 21,390' 34 Multifamily 119 113 7,608 33 66 57 7,608 7,710' 35 Commercial 497 159 8,446 217 111 115 8,446 8,463' 36 Farm 447 278 10,742 237 247 153 10,742 10,64c 37 Federal Housing and Veterans Administration 4,816 4,920 5,047 4,964 5,094 4,966 5,047 5,091 38 1- to 4-family 2,048 2,254 2,386 2,309 2,449 2,331 2,386 2,440 39 Multifamily 2,768 2,666 2,661 2,655 2,645 2,635 2,661 2,651 40 Federal National Mortgage Association 87,940 98.282 97,895 98,795 97,295 97,717 97,895 95,140 41 1- to 4-family 82,175 91,966 90.718 92.315 90.460 90,508 90,718 88,126 42 Multifamily 5.765 6,316 7,177 6,480 6,835 7,209 7,177 7,014 43 Federal Land Banks 52,261 47.498 39,984 45,422 43,369 42,119 39,984 38,684 44 1- to 4-family 3,074 2.798 2,353 2,673 2.552 2,478 2,353 2,276 45 Farm 49,187 44,700 37,631 42,749 40,817 39,641 37,631 36,408 46 Federal Home Loan Mortgage Corporation 10,399 14,022 11.564 13,623 14,194 13,359 11,564 10,764 47 1- to 4-family 9,654 11,881 10,010 12,231 11,890 11,127 10,010 9,610 48 Multifamily 745 2,141 1.554 1,392 2,304 2,232 1,554 1,154 49 Mortgage pools or trusts5 332,057 415,042 529,763 440,701 475,615 522,721 529,763 573,372' 50 Government National Mortgage Association 179,981 212.145 260,869 220,348 229,204 241,230 260,869 277,386' 51 1- to 4-family 175,589 207,198 255,132 215,148 223,838 235,664 255,132 271,065' 52 Multifamily 4,392 4.947 5,737 5,200 5,366 5,566 5,737 6,321' S3 Federal Home Loan Mortgage Corporation 70,822 100,387 171.372 110,337 125,903 146,871 171,372 187,962 54 1- to 4-family 70,253 99,515 166,667 108.020 123,676 143,734 166,667 182,857 55 Multifamily 569 872 4,705 2,317 2,227 3,137 4,705 5,105 56 Federal National Mortgage Association 36,215 54,987 97,174 62,310 72,377 86,359 97,174 107.673 57 1- to 4-family 35,965 54,036 95,791 61,117 71,153 85,171 95,791 106,068 58 Multifamily 250 951 1,383 1,193 1,224 1,188 1,383 1,605 59 Farmers Home Administration4 45,039 47,523 348 47,706 48,131 48.261 348 351' 60 1- to 4-family 21,813 22,186 142 22,082 21,987 21.782 142 154' 61 Multifamily 5,841 6,675 n.a. 6,943 7,170 7,353 n.a. n.a. 62 Commercial 7,559 8,190 132 8,150 8,347 8,409 132 127 63 Farm 9,826 10.472 74 10,531 10.627 10,717 74 70 64 Individuals and others6 272,902 294,559 324,224 301.555 311,539 323,357 324,224 328,112 65 1- to 4-family 153,710 165,199 180.159 167,755 174,396 182,569 180,159 181,628 66 Multifamily 48,480 55,195 65,864 57,850 60,938 63,635 65,864 67,673 67 Commercial 41,279 47,897 53,327 49,756 50,513 51,983 53.327 54,676 68 Farm 29,433 26,268 24,874 26,194 25,692 25,170 24,874 24,135 1. Based on data from various institutional and governmental sources, with reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986: 4, some quarters estimated in part by the Federal Reserve. Multifamily debt refers to because of accounting changes by the Farmers Home Administration. loans on structures of five or more units. 5. Outstanding principal balances of mortgage pools backing securities insured 2. Includes loans held by nondeposit trust companies but not bank trust or guaranteed by the agency indicated. departments. 6. Other holders include mortgage companies, real estate investment trusts, 3. Assumed to be entirely 1- to 4-family loans. state and local credit agencies, state and local retirement funds, noninsured 4. FmHA-guaranteed securities sold to the Federal Financing Bank were pension funds, credit unions, and other U.S. agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • August 1987 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars 1986 1987 11998855 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.' Apr. Amounts outstanding (end of period) 1 Total 522,805 577,784 563,660 571,280 576,874 577,656 577,784 578,578 579,591 579,913 582,840 By major holder 2 Commercial banks 242,084 261,604 257,482 258,990 260,940 262,949 261,604 261.694 262,105 261,933 263,308 3 Finance companies- 113,070 136,494 129.265 135,516 138,038 136,314 136,494 135,802 136,009 136,050 137,091 4 Credit unions 72,119 77,857 75,637 76,299 76,995 77,508 77,857 78,284 78,492 78.569 78,871 Retailers3 38,864 40,586 40,379 40,455 40,565 40.496 40,586 40,617 40.644 40,469 40,467 6 Savings institutions 52,433 58.037 57,524 56.687 57,046 57,168 58,037 58,906 59,031 59.488 59,582 7 Gasoline companies 4,235 3.205 3,372 3.333 3,289 3,221 3,205 3,276 3.311 3,405 3,522 By major type of credit 8 Automobile 208,057 245,055 231,200 239,014 243,400 243.005 245,055 245,472 246,064 246,290 247,186 9 Commercial banks 93,003 100,709 96,871 98.057 99,385 100,221 100,709 101,389 101,688 101,528 101,548 10 Credit unions 35,635 39,029 37,916 38,248 38,597 38,854 39,029 39,243 39,347 39,386 39,537 li Finance companies 70,091 93,274 84.868 91,241 93,786 92,188 93,274 92,617 92,780 93,032 93,738 12 Savings institutions 9,328 12.043 11,545 11,468 11,632 11,742 12,043 12,223 12,249 12.344 12,363 13 Revolving 122,021 134,938 133,180 133,123 133.816 134,391 134.938 134,916 135,663 135,166 136,598 14 Commercial banks 75,866 85,652 84,545 84,430 84,868 85,426 85,652 85,395 86,053 85,567 86,863 15 Retailers 34,695 36,240 36.028 36,086 36,190 36.137 36,240 36,277 36,308 36,141 36,139 16 Gasoline companies 4,235 3,205 3,372 3,333 3,289 3,221 3.205 3,276 3,311 3,405 3,522 17 Savings institutions 5,705 7,713 7,325 7.308 7,445 7,529 7,713 7,829 7,845 7,906 7,918 18 Credit unions 1.520 2,128 1,910 1,966 2.024 2,078 2,128 2.139 2,145 2,147 2.156 19 Mobile home 25,488 25,710 25.939 25,732 25,784 25.731 25,710 25,852 25,789 25,614 25,611 20 Commercial banks 9,538 8,812 9.055 9.016 9,025 8,951 8,812 8,787 8,739 8,725 8,716 21 Finance companies 9.391 9.028 9,337 9,216 9,149 9.091 9,028 9,077 9,045 8,823 8,816 22 Savings institutions 6,559 7,870 7,547 7.500 7,610 7,689 7,870 7,988 8,005 8,067 8,079 23 Other 167,239 172,081 173,341 173,411 173,874 174,529 172,081 172,338 172,076 172,844 173,446 24 Commercial banks 63.677 66,431 67,011 67,487 67,662 68,351 66,431 66,122 65,625 66,113 66,181 is Finance companies 33,588 34,192 35,061 35,059 35.104 35,035 34,192 34,108 34,183 34,196 34,537 26 Credit unions 34,964 36,700 35.811 36,085 36.374 36,576 36,700 36.901 36,999 37,036 37,178 11 Retailers 4,169 4,346 4,351 4,369 4,375 4,359 4,346 4,340 4,336 4,327 4,328 28 Savings institutions 30,841 30,412 31.107 30,411 30.359 30,208 30.412 30,867 30,932 31,172 31,221 Net change (during period) 29 Total 76,622 54,979 5,601 7,620 5,594 782 128 794 1,013 322 2,927 By major holder 30 Commercial banks 32,926 19,520 1.738 1,508 1,950 2,009 -1,345 90 411 -172 1.375 31 Finance companies2 23,566 23,424 1,885 6,251 2,522 -1,724 180 -692 207 41 1.041 32 Credit unions 6,493 5.738 772 662 696 513 349 427 208 77 302 33 Retailers3 1,660 1,722 221 76 110 -69 90 31 27 -175 -2 34 Savings institutions 12,103 5,604 1,024 -837 359 122 869 869 125 457 94 35 Gasoline companies -126 -1,030 -39 -39 -44 -68 -16 71 35 94 117 By major type of credit 36 Automobile 35,705 36,998 3,378 7,814 4,386 -395 2.050 417 592 226 896 37 Commercial banks 9,103 7,706 899 1,186 1,328 836 488 680 299 -160 20 38 Credit unions 5,330 3,394 387 332 349 257 175 214 104 39 151 39 Finance companies 17,840 23,183 1.802 6,373 2,545 -1,598 1,086 -657 163 252 706 40 Savings institutions 3,432 2.715 290 -77 164 110 301 180 26 95 19 41 Revolving 22,401 12,917 999 -57 693 575 547 -22 747 -497 1,432 42 Commercial banks 17,721 9,786 558 -115 438 558 226 -257 658 -486 1,296 43 Retailers 1,488 1,545 201 58 104 -53 103 37 31 -167 -2 44 Gasoline companies -126 -1,030 -39 -39 -44 -68 -16 71 35 94 117 45 Savings institutions 2,771 2,008 220 -17 137 84 184 116 16 61 12 46 Credit unions 547 608 59 56 58 54 50 11 6 2 9 47 Mobile home 778 222 48 -207 52 -53 -21 142 -63 -175 -3 48 Commercial banks -85 -726 -71 -39 9 -74 -139 -25 -48 -14 -9 49 Finance companies -405 -363 -77 -121 -67 -58 -63 49 -32 -222 -7 50 Savings institutions 1,268 1,311 196 -47 110 79 181 118 17 62 12 51 Other 17,738 4,842 1,176 70 463 655 -2,448 257 -262 768 602 52 Commercial banks 6,187 2,754 352 476 175 689 -1,920 -309 -497 488 68 53 Finance companies 6,131 604 161 _-> 45 -69 -843 -84 75 13 341 54 Credit unions 616 1,736 326 274 289 202 124 201 98 37 142 55 Retailers 172 177 20 18 6 -16 -13 -6 -4 -9 1 56 Savings institutions 4,632 -429 317 -696 -52 -151 204 455 65 240 49 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 1987 IItteemm 11998844 11998855 11998866 Oct. Nov. Dec. Jan. Feb. Mar. Apr. INTEREST RATES Commercial banks' 1 48-month new car- 13.71 12.91 11.33 n.a. 10.58 n.a. n.a. 10.35 n.a. n.a. 2 24-month personal 16.47 15.94 14.82 n.a. 14.19 n.a. n.a. 14.10 n.a. n.a. 3 120-month mobile home2 15.58 14.96 13.99 n.a. 13.49 n.a. n.a. 13.42 n.a. n.a. 4 Credit card 18.77 18.69 18.26 n.a. 18.09 n.a. n.a. 18.10 n.a. n.a. Auto finance companies New car 14.62 11.98 9.44 6.12 11.83 11.71 11.65 10.78 10.59 10.81 6 Used car 17.85 17.59 15.95 15.17 15.20 15.12 14.62 14.56 14.40 14.49 OTHER TERMS3 Maturity (months) 7 New car 48.3 51.5 50.0 45.3 53.4 53.3 53.8 53.6 53.7 54.3 8 Used car 39.7 41.4 42.6 42.2 42.6 42.7 44.8 44.7 44.9 45.0 Loan-to-value ratio 9 New car 88 91 91 92 93 93 94 94 94 94 10 Used car 92 94 97 97 97 98 98 99 99 98 Amount financed (dollars) 11 New car 9,333 9,915 10,665 11,340 11,160 10,835 10,902 10,602 10,641 10,946 12 Used car 5,691 6,089 6,555 6,746 6,946 7,168 7,067 7,075 7,145 7,234 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

A44 Domestic Nonfinancial Statistics • August 1987 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1984 1986' Transaction category, sector 1981 1985 1986' HI H2 HI H2 HI H2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 375.8 387.4 548.8 756.3 869.3 834.0 727.8 784.8 732.6 1,006.1 706.0 962.5 By .sector and instrument i U.S. government 87.4 161.3 186.6 198.8 223.6 214.3 181.3 216.3 201.8 245.5 211.3 221177..55 3 Treasury securities 87.8 162.1 186.7 199.0 223.7 214.7 181.5 216.4 201.9 245.5 211.4 218.0 4 Agency issues and mortgages -.5 -.9 -.1 -•2 -.1 -.3 -.1 -.1 -.1 -.1 -.5 5 Private domestic nonfinancial sectors 288.5 226.2 362.2 557.5 645.7 619.6 546.5 568.5 530.8 760.6 494.7 745.0 6 Debt capital instruments 155.5 148.3 252.8 314.0 461.7 461.7 298.4 329.6 355.4 568.0 392.3 531.2 7 Tax-exempt obligations 23.4 44.2 53.7 50.4 152.4 49.5 42.8 58.0 67.5 237.3 15.9 83.0 8 Corporate bonds 22.8 18.7 16.0 46.1 73.9 113.7 31.2 61.1 72.7 75.1 137.0 90.4 9 109.3 85.4 183.0 217.5 235.4 298.5 224.5 210.5 215.2 255.7 239.3 357.7 10 Home mortgages 72.2 50.5 117.1 129.9 150.3 199.2 135.2 124.7 133.1 167.5 156.1 242.3 11 Multifamily residential 4.8 5.4 14.1 25.1 29.2 33.0 27.5 22.7 24.6 33.7 30.8 35.1 1? Commercial 22.2 25.2 49.0 63.3 62.4 73.7 62.9 63.7 60.3 64.4 59.7 87.7 13 Farm 10.0 4.2 2.8 -.8 -6.4 -7.4 -1.1 -.5 -2.8 -10.0 -7.4 -7.4 14 Other debt instruments 133.0 77.9 109.5 243.5 184.0 157.9 248.1 238.9 175.4 192.6 102.4 213.9 15 Consumer credit 22.6 17.7 56.8 95.0 96.6 65.8 98.7 91.3 97.3 95.9 70.6 61.6 16 Bank loans n.e.c 57.0 52.9 25.8 80.1 41.3 71.0 91.9 68.4 24.9 57.7 17.6 124.4 17 Open market paper 14.7 -6.1 -.8 21.7 14.6 -9.3 24.8 18.7 12.3 16.9 -15.7 -3.0 18 Other 38.7 13.4 27.7 46.6 31.4 30.3 32.7 60.5 40.9 22.0 29.9 30.7 19 By borrowing sector 288.5 226.2 362.2 557.5 645.7 619.6 546.5 568.5 530.8 760.6 494.7 745.0 70 State and local governments 6.8 21.5 34.0 27.4 107.8 59.4 25.2 29.6 56.8 158.7 35.7 83.2 ">1 Households 121.4 88.4 188.0 239.5 295.0 282.1 232.8 246.2 253.6 336.4 222.4 342.3 11 16.6 6.8 4.3 .1 -13.6 -14.4 -.4 .5 -5.9 -21.3 -15.1 -13.7 73 Nonfarm noncorporate 38.5 40.2 76.6 97.1 92.8 114.6 101.4 92.7 85.6 99.9 94.4 134.7 24 Corporate 105.2 69.2 59.3 193.4 163.7 178.0 187.4 199.5 140.7 186.8 157.3 198.6 25 Foreign net borrowing in United States 23.5 16.0 17.4 6.1 1.7 9.7 35.5 -23.3 -4.1 7.5 24.3 -5.0 76 Bonds 5.4 6.7 3.1 1.3 4.0 3.2 1.1 1.5 5.5 2.6 7.1 -.8 77 Bank loans n.e.c 3.0 -5.5 3.6 -6.6 -2.8 -1.0 -2.2 -11.1 -6.1 .4 1.4 -3.5 78 Open market paper 3.9 1.9 6.5 6.2 6.2 11.5 18.0 -5.6 4.2 8.2 20.6 2.4 29 U.S. government loans 11.1 13.0 4.1 5.3 -5.7 -4.0 18.7 -8.1 -7.8 -3.6 -4.8 -3.1 30 Total domestic plus foreign 399.3 403.4 566.2 762.4 871.0 843.6 763.3 761.5 728.4 1,013.5 730.3 957.6 Financial sectors 31 Total net borrowing by financial sectors 101.9 90.1 94.0 139.0 186.9 248.4 134.2 143.8 154.8 218.9 185.9 310.9 By instrument 32 U.S. government related 47.4 64.9 67.8 74.9 101.5 173.7 69.8 80.0 92.9 110.2 129.5 221177..88 33 Sponsored credit agency securities 30.5 14.9 1.4 30.4 20.6 12.6 29.1 31.8 25.3 15.9 4.4 20.8 34 Mortgage pool securities 15.0 49.5 66.4 44.4 79.9 161.4 40.7 48.2 67.6 92.1 124.3 198.6 1.9 .4 1.1 -.4 2.2 .8 -1.5 36 Private financial sectors 54.5 25.2 26.2 64.1 85.3 74.8 64.4 63.8 61.9 108.8 56.4 93.1 37 Corporate bonds 4.4 12.5 12.1 23.3 36.5 26.6 17.3 29.3 35.3 37.7 25.5 27.7 38 Mortgages * .1 * .4 .1 .1 .4 .4 * ..11 .6 -.4 39 Bank loans n.e.c 1.2 1.9 -.1 .7 2.6 4.0 -.1 1.4 .9 44..22 2.4 5.6 40 Open market paper 32.7 9.9 21.3 24.1 32.0 24.2 31.1 17.0 13.9 50.1 14.4 34.1 41 Loans from Federal Home Loan Banks 16.2 .8 -7.0 15.7 14.2 19.8 15.7 15.7 11.7 16.7 13.5 26.2 By sector 42 Sponsored credit agencies 32.4 15.3 1.4 30.4 21.7 12.2 29.1 31.8 25.3 1188..11 55..22 1199..33 43 Mortgage pools 15.0 49.5 66.4 44.4 79.9 161.4 40.7 48.2 67.6 92.1 124.3 198.6 44 Private financial sectors 54.5 25.2 26.2 64.1 85.3 74.8 64.4 63.8 61.9 108.8 56.4 93.1 45 Commercial banks 11.6 11.7 5.0 7.3 -4.9 -3.6 15.4 -.9 -9.2 -.6 -6.7 -.5 46 Bank affiliates 9.2 6.8 12.1 15.6 14.5 4.5 23.7 7.5 13.7 15.3 1.7 7.4 47 Savings and loan associations 15.5 2.5 -2.1 22.7 22.3 29.2 20.2 25.1 12.1 32.6 23.1 35.3 48 Finance companies 18.5 4.3 11.4 17.8 52.8 44.1 4.3 31.3 44.8 60.9 37.5 50.6 49 REITs __2 -i .8 .5 .6 .8 .8 .5 .5 .9 .3 All sectors 50 Total net borrowing 501.3 493.5 660.2 901.4 1057.8 1092.1 897.5 905.3 833.3 1,232.4 916.2 1268.5 51 U.S. government securities . 133.0 225.9 254.4 273.8 324.2 388.4 251.2 296.4 294.8 353.5 340.0 436.9 52 State and local obligations .. 23.4 44.2 53.7 50.4 152.4 49.5 42.8 58.0 67.5 237.3 15.9 83.0 53 Corporate and foreign bonds 32.6 37.8 31.2 70.7 114.4 143.5 49.6 91.9 113.5 115.3 169.6 117.4 54 Mortgages 109.2 85.4 183.0 217.8 235.4 298.6 224.8 210.8 215.2 255.7 239.9 357.3 55 Consumer credit 22.6 17.7 56.8 95.0 96.6 65.8 98.7 91.3 97.3 95.9 70.6 61.6 56 Bank loans n.e.c 61.2 49.3 29.3 74.2 41.0 74.0 89.6 58.8 19.8 62.3 21.4 126.6 57 Open market paper 51.3 5.7 26.9 52.0 52.8 26.4 73.8 30.1 30.4 75.2 19.3 33.4 58 Other loans 68.0 27.6 24.8 67.6 41.0 45.8 67.1 68.1 44.8 37.3 39.4 52.3 External corporate equity funds raised in United States 50 Total new share issues -3.3 33.6 67.0 -31.1 37.5 119.5 -40.1 -22.2 33.3 41.6 146.8 92.3 60 Mutual funds 6.0 16.8 32.1 38.0 103.4 191.7 39.3 36.6 93.6 113.1 198.7 184.6 61 All other -9.3 16.8 34.9 -69.1 -65.9 -72.1 -79.4 -58.8 -60.4 -71.5 -52.0 -92.3 6? Nonfinancial corporations -11.5 11.4 28.3 -77.0 -81.6 -80.8 -84.5 -69.4 -75.7 -87.5 -68.7 -92.7 63 Financial corporations 1.9 4.0 2.7 6.7 11.7 7.0 5.9 7.6 11.0 12.4 8.3 5.7 64 Foreign shares purchased in United States .3 1.5 3.9 1.2 4.0 1.6 -.7 3.0 4.3 3.6 8.5 -5.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates. 1984 1985 1986' TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998811 11998822 11998833 11998844 11998855 11998866'' HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 375.8 387.4 548.8 756.3 869.3 834.0 727.8 784.8 732.6 1,006.1 706.0 962.5 By public agencies and foreign 7 104.4 115.4 115.3 154.6 203.3 311.1 132.5 176.6 201.8 204.9 226677..66 335544..55 3 U.S. government securities 17.1 22.7 27.6 36.0 47.2 87.8 26.8 45.2 53.1 41.3 85.4 90.1 4 Residential mortgages 23.5 61.0 76.1 56.5 94.6 158.5 52.7 60.2 85.6 103.7 121.0 196.0 5 FHLB advances to savings and loans 16.2 .8 -7.0 15.7 14.2 19.8 15.7 15.7 11.7 16.7 13.5 26.2 6 Other loans and securities 47.7 30.8 18.6 46.5 47.3 45.0 37.5 55.5 51.4 43.2 47.7 42.3 Total advanced, by sector 7 U.S. government 24.0 15.9 9.7 17.4 17.8 10.9 9.0 25.7 28.8 6.7 12.9 9.0 8 Sponsored credit agencies 48.2 65.5 69.8 73.3 101.5 176.6 74.0 72.5 98.2 104.9 135.3 217.9 9 Monetary authorities 9.2 9.8 10.9 8.4 21.6 30.2 8.8 8.0 23.7 19.5 9.8 50.6 10 Foreign 23.0 24.1 24.9 55.5 62.4 93.4 40.7 70.4 51.0 73.8 109.7 77.1 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 47.4 64.9 67.8 74.9 101.5 173.7 69.8 80.0 9922..99 111100..22 112299..55 221177..88 12 Foreign 23.5 16.0 17.4 6.1 1.7 9.7 35.5 -23.3 -4.1 7.5 24.3 -5.0 Private domestic funds advanced 13 Total net advances 342.3 352.9 518.7 682.7 769.2 706.2 700.5 664.9 619.6 918.8 592.1 882200..99 14 U.S. government securities 115.9 203.1 226.9 237.8 277.0 300.6 224.4 251.2 241.7 312.2 254.5 346.8 15 State and local obligations 23.4 44.2 53.7 50.4 152.4 49.5 42.8 58.0 67.5 237.3 15.9 83.0 16 Corporate and foreign bonds 19.8 14.8 14.6 32.6 41.2 79.0 25.6 39.6 49.7 32.7 104.2 53.9 17 Residential mortgages 53.5 -5.3 55.0 98.5 84.8 73.7 109.9 87.0 72.0 97.5 65.9 81.4 18 Other mortgages and loans 145.9 96.9 161.5 279.1 228.1 223.2 313.6 244.7 200.4 255.9 165.0 281.9 19 LESS: Federal Home Loan Bank advances 16.2 .8 -7.0 15.7 14.2 19.8 15.7 15.7 11.7 16.7 13.5 26.2 Private financial intermediation 70 Credit market funds advanced by private financial institutions 320.2 261.9 391.9 550.5 554.4 647.9 581.8 519.1 471.3 637.4 572.4 724.0 71 Commercial banking 106.5 110.2 144.3 168.9 186.3 194.8 184.2 153.5 133.8 238.8 106.9 283.0 77 Savings institutions 26.2 21.8 135.6 149.2 83.4 105.3 173.5 124.9 63.0 103.9 101.4 109.3 73 Insurance and pension funds 93.5 86.2 97.8 124.0 141.0 137.2 144.5 103.5 121.8 160.1 128.6 145.9 24 Other finance 94.0 43.7 14.1 108.3 143.6 210.5 79.5 137.2 152.7 134.5 235.6 185.8 75 Sources of funds 320.2 261.9 391.9 550.5 554.4 647.9 581.8 519.1 471.3 637.4 572.4 724.0 76 Private domestic deposits and RPs 214.5 195.2 212.2 317.6 204.8 242.3 300.2 334.9 203.0 206.6 224.5 260.3 27 Credit market borrowing 54.5 25.2 26.2 64.1 85.3 74.8 64.4 63.8 61.9 108.8 56.4 93.1 78 Other sources 51.2 41.5 153.4 168.8 264.2 330.8 217.2 120.4 206.5 322.0 291.5 370.5 79 Foreign funds -23.7 -31.4 16.3 5.4 17.7 12.4 3.0 7.8 11.2 24.3 .9 24.0 30 Treasury balances -1.1 6.1 -5.3 4.0 10.3 1.7 -.1 8.2 14.4 6.1 -5.5 9.0 31 Insurance and pension reserves 89.6 92.5 110.6 112.5 107.0 120.0 146.5 78.5 97.4 116.6 104.5 135.5 32 Other, net -13.6 -25.7 31.8 46.8 129.2 196.6 67.8 25.9 83.5 175.0 191.5 202.1 Private domestic nonfinancial investors 33 Direct lending in credit markets 76.6 116.3 153.0 196.4 300.2 133.1 183.1 209.6 210.2 390,2 76.1 190.0 34 U.S. government securities 37.1 69.9 95.5 132.9 150.9 81.0 142.2 123.6 130.8 171.0 41.4 120.9 35 State and local obligations 11.1 25.0 39.0 29.6 59.2 17.8 25.0 34.3 20.5 98.0 -21.8 57.4 36 Corporate and foreign bonds -4.0 2.0 -12.7 -3.4 13.2 12.3 -26.8 19.9 25.4 1.0 49.3 -24.7 37 Open market paper 1.4 -1.3 15.1 8.9 51.8 1.4 15.7 2.2 7.3 96.3 -13.8 16.7 38 Other 31.0 20.6 16.2 28.3 25.1 20.6 26.9 29.7 26.3 24.0 21.0 19.8 39 Deposits and currency 222.4 204.5 229.7 321.1 215.1 262.7 311.3 330.9 215.9 214.3 241.6 284.0 40 Currency 9.5 9.7 14.3 8,6 12.4 14.4 13.1 4.1 15.8 9.0 10.9 17.9 41 Checkable deposits 18.5 18.6 28.8 27.8 42.0 99.4 29.4 26.3 18.2 65.8 83.1 115.9 4"> Samll time and savings accounts 47.3 135.7 215.3 150.7 137.5 123.1 136.4 164.9 167.1 108.0 119.5 126.7 43 Money market fund shares 107.5 24.7 -44.1 47.2 -2.2 20.8 30.2 64.2 4.2 -8.6 29.0 12.7 44 Large time deposits 36.0 5.2 -6.3 84.9 14.0 -8.2 93.4 76.5 -.8 28.9 .9 -17.3 45 Security RPs 5.2 11.1 18.5 7.0 13.4 7.2 10.8 3.1 14.3 12.5 -7.9 46 Deposits in foreign countries -1.7 -.4 3.1 -5.1 -2.1 6.0 -2.0 -8.2 -2.9 -1.3 6.2 5.7 47 Total of credit market instruments, deposits and currency 299.0 320.7 382.7 517.4 515.3 395.8 494.4 540.5 426.0 604.5 317.8 474.0 48 Public holdings as percent of total 26.2 28.6 20.4 20.3 23.3 36.9 17.4 23.2 27.7 20.2 36.6 37.0 49 Private financial intermediation (in percent) 93.6 74.2 75.5 80.6 72.1 91.7 83.1 78.1 76.1 69.4 96.7 88.2 50 Total foreign funds -.7 -7.3 41.3 60.9 80.1 105.8 43.7 78.2 62.2 98.1 110.5 101.1 MEMO: Corporate equities not included above 51 Total net issues -3.3 33.6 67.0 -31.1 37.5 119.5 -40.1 -22.2 33.3 41.6 146.8 9922..33 57 Mutual fund shares 6.0 16.8 32.1 38.0 103.4 191.7 39.3 36.6 93.6 113.1 198.7 184.6 53 Other equities -9.3 16.8 34.9 -69.1 -65.9 -72.1 -79.4 -58.8 -60.4 -71.5 -52.0 -92.3 54 Acquisitions by financial institutions 19.9 27.6 46.8 8.2 33.3 25.2 -4.1 20.6 54.0 12.6 35.4 15.1 55 Other net purchases -23.2 6.0 20.2 -39.4 4.1 94.3 -36.0 -42.7 -20.7 29.0 111.4 77.2 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. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also 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, outstanding may be obtained from Flow of Funds Section, Division of Research less 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 • August 1987 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1986 1987 MMeeaassuurree 11998844 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb.' Mar.' Apr.' May 1 Industrial production 121.4 123.8 125.0 124.9 125.3 126.0 126.7 126.5 127.2 127.3 127.2 127.8 Market groupings 2 Products, total 126.7 130.8 133.2 133.3 134,0 134.5 135.0 134.9 136.1 136.2 135.6 136.5 3 Final, total 127.3 131.1 132.3 132.2 132.7 133.1 133.7 133.6 135.0 135.1 134.4 135.2 4 Consumer goods 118.0 120.2 124.4 124.2 124.7 125.6 127.2 126.8 127.5 127.6 126.6 127.4 5 Equipment 139.6 145.4 142.7 142.8 143.3 143.1 142.2 142.8 144.9 145.0 144.7 145.6 6 Intermediate 124.7 130.0 136.4 137.0 138.7 139.2 139.7 139.1 139.7 140.1 140.0 140.7 7 Materials 114.2 114.2 113.9 113.5 113.3 114.3 115.2 115.2 115.1 115.1 115.6 116.0 Industry groupings 8 Manufacturing 123.4 126.4 129.1 129.5 129.9 130.3 131.1 131.1 132.0 132.2 132.0 132.7 Capacity utilization (percent)- 9 Manufacturing 80.5 80.1 79.8 79.6 79.6 79.7'' 80.0 79.9'' 80.3 80.2 79.9 80.2 10 Industrial materials industries 82.0 80.2 78.5 78.1 77.8 78.8' 78.9 78.8 78.7 78.6 78.8 79.0 11 Construction contracts (1982 = 100)3 135.0 148.0 155.0 155.0 151.0 156.0 155.0 150.0 145.0 160.0 158.0 149.0 12 Nonagricultural employment, total4 114.6 118.4 121.5 121.3'' 121.5'' 121.8' 121.9' 122.4'' 122.7 122.9 123.2 123.4 13 Goods-producing, total 101.6 102.4 102.4 101.1' 101.1' 101.2' 101.2' 101.5' 101.6 101.7 101.7 101.7 14 Manufacturing, total 98.4 98.1 97.5 96.2' 96.2' 96.3' 96.4' 96.3' 96.4 96.5 96.6 96.6 15 Manufacturing, production-worker.... 94.1 92.9 92.1 90.9' 90.9' 91.1' 91.3' 91.1' 91.4 91.4 91.5 91.6 16 Service-producing 120.0 125.0 129.4 129.8' 130.1' 130.4' 130.6'' 131.1' 131.5 131.8 132.2 132.4 17 Personal income, total 193.5 206.2 216.8 218.2 218.8 219.2 220.4 221.3' 223.8 224.5 225.3 225.8 18 Wages and salary disbursements 184.8 197.8 208.6 210.1 211.5 212.5 212.8 214.2'' 216.0 216.8 217.5 218.4 19 Manufacturing 164.6 172.5 176.7 176.5 179.0 177.8 178.1 178.7 179.6 179.3 178.8 179.4 20 Disposable personal income 193.6 205.0 215.5 216.4 216.7 216.8 217.5 219.0'' 222.4 223.0 217.0 224.3 21 Retail sales* 179.0 190.6 199.9 213.0 201.9 200.9 211.8 196.8 206.3 207.9 208.1 206.7 Prices 22 Consumer (1967 = 1(H)) 311.1 322.2 328.4 330.2 330.5 330.8 331.1 333.1 334.4 335.9 337.7 338.7 23 Producer finished goods (1967 = 100) ... 291.1 293.7 289.6 287.3 290.7 290.7 290.4 291.8' 292.3 292.3 295.0 296.3 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 1987 CCaatteeggoorryy 11998844 11998855'' 11998866'' Oct.' Nov.' Dec.' Jan. Feb.' Mar.' Apr.' May HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 178,602 180,440 182,822 183,450 183,628 183,815 184,092 184,259 184,436 184,597 184,777 I Labor force (including Armed Forces)1 115,763 117,695 120,078 120,678 120,940 120,854 121,299 121,610 121,479 121,588 122,237 3 Civilian labor force 113,544 115,461 117,834 118,414 118,675 118,586 119,034 119,349 119,222 119,335 119,993 Employment 4 Nonagricultural industries2 101,685 103,971 106,434 107,030 107,217 107,476 107,866 108,146 108,084 108,545 109,112 5 Agriculture 3,321 3,179 3,163 3,162 3.215 3,161 3,145 3,236 3,284 3,290 3,335 Unemployment 6 Number 8,539 8,312 8,237 8.222 8.243 7,949 8.023 7,967 7,854 7,500 7,546 7 Rate (percent of civilian labor force) . . . 7.5 7.2 7.0 6.9 6.9 6.7 6.7 6.7 6.6 6.3 6.3 8 Not in labor force 62,839 62,745 62.744 62.772 62.688 62,961 62.793 62,649 62.957 63,009 62,540 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment-1 94,496 97,519 99,610 100,209 100,415 100,567 100,919' 101,150 101,329 101,609 101,732 10 Manufacturing 19,378 19,260 18,994 18.934 18,954 18,970 18,956' 18.986 18,995 19,011 19,016 11 Mining 966 927 783 735 730 724 718' 719 722 730 735 1? Contract construction 4,383 4,673 4,904 4,942 4,946 4,936 5,034' 5,038 5,032 5,016 4,996 13 Transportation and public utilities 5,159 5,238 5,244 5,251 5,278 5.286 5,304' 5,315 5,333 5,345 5,344 14 Trade 22,100 23,073 23,580 23.711 23,737 23,732 23,821' 23,897 23,902 23,982 24,006 15 Finance 5,689 5,955 6,297 6.395 6.418 6,451 6.480' 6,501 6,526 6,560 6,577 16 Service 20,797 22,000 23,099 23,369 23,452 23,544 23,670 23,759 23,842 23,926 24,022 17 Government 16,023 16,394 16,710 16.872 16,900 16,924 16,936' 16,935 16,977 17.039 17,036 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 1987 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 • August 1987 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1986 1987 1986 1987 1986 1987 Q2 Q3 Q4 Ql' Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql' Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 124.4 125.0 126.0 127.0 157.1 157.9 158.8' 159.6 79.2 79.1 79.3 79.6 2 Mining 99.9 96.6 96.6 96.6 132.1 131.9 131.7 131.3 75.6 73.2 73.4 73.6 3 Utilities 108.9 108.8 110.4 109.5 136.9 137.5 138.1 138.7 79.5 79.1 79.9 78.9 4 Manufacturing 128.4 129.4 130.4 131.8 161.4 162.4 163.4 164.4 79.5 79.7 79.8 80.2 5 Primary processing.... 111.1 112.1 114.0 115.1 134.0 134.6 135.1 135.9' 82.9 83.3 84.3' 84.7 6 Advanced processing 138.9 139.7 140.4 141.8 177.9 179.1 180.4 181.7 78.0 78.0 77.8 78.1 7 Materials 113.3 113.4 114.3 115.1 144.7 145.3 145.8 146.3 78.3 78.1 78.4 78.7 8 Durable goods 118.8 118.8 120.1 121.2 160.7 161.5 162.2 163.0 73.9 73.6 74.0 74.4 9 Metal materials 75.1 73.1 75.7 75.5 114.5 114.0 113.4 112.7 65.6 64.2 66.7 67.0 10 Nondurable goods .... 116.9 119.7 121.1 122.8 139.5 139.9 140.4 141.0 83.8 85.6 86.4 87.1 11 Textile, paper, and chemical .. 117.0 120.4 122.4 124.2 138.8 139.2 139.6 140.4 84.3 86.5 87.6 88.5 12 Paper 130.1 135.1 136.0 136.4 138.1 138.9 139.7 140.8 94.2 97.3 97.3 96.9 13 Chemical 115.4 117.7 120.1 122.5 144.3 144.7 145.0 145.6 80.0 81.4 82.8 84.2 14 Energy materials 100.6 98.6 98.2 97.8 121.3 121.4 121.6 121.6 82.9 81.2 80.7 80.5 Previous cycle1 Latest cycle2 1986 1986 1987 High Low High Low May Sept. Oct. Nov. Dec. Jan. Feb.' Mar.' Apr.' May Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 79.1 79.0 79.0 79.4 79.6 79.4 79.7 79.6 79.4 79.6 16 Mining 92.8 87.8 95.2 76.9 75.5 72.9 72.5 73.9 73.8 73.9 73.3 73.5 73.7 73.7 17 Utilities 95.6 82.9 88.5 78.0 79.3 78.7 79.3 80.5 79.5 79.1 79.0 78.7 79.4 80.4 18 Manufacturing 87.7 69.9 86.5 68.0 79.4 79.6 79.6 79.8 80.0 79.9' 80.3 80.2 79.9 80.2 19 Primary processing.... 91.9 68.3 89.1 65.1 82.9 83.7 83.8 84.4 85.0 84.8' 84.7 84.7 85.0 85.5 20 Advanced processing.. 86.0 71.1 85.1 69.5 78.0 77.6 77.8 77.7 77.9 77.8 78.3 78.1 77.7 77.9 21 Materials 92.0 70.5 89.1 68.4 78.1 78.1 77.8 78.4 78.9 78.8 78.7 78.6 78.8 79.0 22 Durable goods 91.8 64.4 89.8 60.9 73.7 73.5 73.6 74.2 74.3 74.0 74.6 74.5 74.4 74.5 23 Metal materials 99.2 67.1 93.6 45.7 65.2 64.8 65.2 68.4 66.5 65.9 67.3 68.0 68.3 68.7 24 Nondurable goods .... 91.1 66.7 88.1 70.6 83.5 86.1 85.8 85.7 87.7 87.5 86.8 86.8 87.6 87.8 25 Textile, paper, and chemical 92.8 64.8 89.4 68.6 84.2 87.4 87.0 86.7 89.2 89.3 88.1 88.1 88.9 89.1 76 98.4 70.6 97.3 79.9 93.1 96.1 95.7 96.0 100.2 98.3 97.1 95.4 95.1 11 92 5 64.4 87.9 63.3 80.2 82.6 82.5 81.7 84.3 84.9 83.7 84.0 85.6 28 Energy materials 94.6 86.9 94.0 82.2 82.9 80.7 79.7 81.2 81.2 81.3 80.3 79.7 80.5 81.0 1. Monthly high 1973; monthly low 1975. NOTE. These data also appear in the Board's G.3 (402) release. For address, see 2. Monthly highs 1978 through 1980; monthly lows 1982. inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value A Monthly data are seasonally adjusted 1977 1986 1987 Grouping p p r o o r - - a 1 v 98 g 6 . tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar. Apr.P Mayc Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 125.0 124.2 124.2 124.9 125.1 124.9 125.3 126.0 126.7 126.5 127.2 127.3 127.2 127.8 2 Products 57.72 133.2 132.4 132.4 133.2 133.8 133.3 134.0 134.5 135.0 134.9 136.1 136.2 135.6 136.5 3 Final products 44.77 132.3 131.6 131.1 132.0 132.6 132.2 132.7 133.1 133.7 133.6 135.0 135.1 134.4 135.2 4 Consumer goods 25.52 124.4 124.3 124.4 125.2 125.1 124.2 124.7 125.6 127.2 126.8 127.5 127.6 126.6 127.4 5 Equipment 19.25 142.7 141.2 140.0 141.0 142.5 142.8 143.3 143.1 142.2 142.8 144.9 145.0 144.7 145.6 6 Intermediate products 12.94 136.4 135.1 137.0 137.3 137.8 137.0 138.7 139.2 139.7 139.1 139.7 140.1 140.0 140.7 7 Materials 42.28 113.9 113.0 113.1 113.6 113.2 113.5 113.3 114.3 115.2 115.2 115.1 115.1 115.6 116.0 Consumer goods 8 Durable consumer goods 6.89 116.2 113.8 114.3 116.3 115.7 117.4 116.3 118.4 121.5 120.0 122.4 121.6 118.4 119.4 9 Automotive products 2.98 115.1 113.2 113.7 116.4 114.5 117.0 112.7 114.6 117.7 117.6 123.5 121.1 115.5 116.7 10 Autos and trucks 1.79 112.9 110.3 112.2 114.5 110.4 116.8 107.7 107.6 115.6 117.9 125.2 121.6 111.5 113.1 11 Autos, consumer 1.16 97.3 94.8 99.3 95.3 87.8 96.2 91.9 92.3 99.5 94.3 105.3 100.9 91.8 91.C 12 Trucks, consumer .63 141.8 139.1 136.1 150.3 152.4 155.1 137.1 136.0 145.6 161.9 162.1 159.9 13 Auto parts and allied goods 1.19 118.4 117.4 116.1 119.1 120.7 117.3 120.1 125.2 120.8 117.1 121.0 120.3 121.4 122.0 14 Home goods 3.91 117.1 114.3 114.8 116.3 116.7 117.7 119.0 121.2 124.4 121.9 121.6 122.0 120.6 121.5 15 Appliances, A/C and TV 1.24 139.5 133.9 137.5 138.9 139.4 141.2 142.6 148.1 153.2 146.9 145.2 144.0 138.9 141.1 16 Appliances and TV 1.19 141.6 135.8 139.1 141.6 142.5 143.5 144.3 150.0 155.1 148.9 146.7 144.9 140.5 17 Carpeting and furniture .96 125.8 123.3 122.5 126.6 125.8 126.2 128.8 131.1 132.0 129.1 130.8 132.6 134.5 18 Miscellaneous home goods 1.71 96.0 95.0 94.1 94.1 95.1 96.0 96.5 96.3 99.4 99.8 99.3 100.2 99.7 19 Nondurable consumer goods 18.63 127.5 128.1 128.1 128.4 128.6 126.7 127.8 128.3 129.4 129.2 129.4 129.8 129.6 130.3 20 Consumer staples 15.29 97.0 135.0 135.1 135.3 135.5 133.6 134.4 135.0 136.0 135.9 135.9 136.4 136.3 137.0 21 Consumer foods and tobacco 7.80 134.1 132.4 133.3 132.2 133.2 131.0 131.6 132.6 133.9 132.9 134.0 134.3 134.1 22 Nonfood staples 7.49 131.9 137.7 137.0 138.5 137.9 136.3 137.2 137.4 138.2 139.0 137.9 138.6 138.6 139.2 23 Consumer chemical products .. 2.75 136.5 162.4 163.6 166.4 163.4 161.1 161.7 161.0 163.1 165.9 164.7 167.3 167.0 24 Consumer paper products 1.88 161.2 148.6 147.1 146.4 147.7 145.7 150.3 151.5 150.1 149.4 147.8 146.7 147.1 25 Consumer energy 2.86 147.4 106.8 104.8 106.6 107.1 106.3 105.2 105.5 106.4 106.3 105.7 105.8 105.7 26 Consumer fuel 1.44 105.7 96.4 91.8 91.2 94.9 92.0 90.8 91.7 92.2 95.0 92.5 94.1 93.5 27 Residential utilities 1.42 92.8 117.5 118.1 122.3 119.6 120.9 119.8 119.6 120.8 117.8 119.2 117.7 Equipment 28 Business and defense equipment 18.01 147.1 146.0 145.1 146.4 147.8 148.0 148.4 148.1 147.0 147.7 150.1 150.0 149.8 150.6 29 Business equipment 14.34 138.6 137.9 136.6 137.9 139.3 139.3 139.1 138.6 137.1 138.1 140.8 140.6 140.4 141.2 30 Construction, mining, and farm . . 2.08 59.8 60.9 61.9 60.6 58.3 58.1 58.0 56.6 58.2 57.2 56.8 57.6 58.2 31 Manufacturing 3.27 112.0 111.9 111.7 112.6 113.3 113.0 112.7 109.6 108.8 110.1 111.5 111.2 111.9 112.3 32 Power 1.27 81.6 82.9 83.5 81.7 81.7 80.3 80.5 79.5 80.2 79.6 81.2 81.4 81.0 81 .C 33 Commercial 5.22 214.6 212.9 208.2 214.5 217.5 215.1 215.4 217.3 213.7 215.9 218.4 219.4 220.2 221.5 34 Transit 2.49 109.2 107.3 108.8 103.9 106.9 113.3 111.8 110.7 108.9 109.5 117.4 114.0 110.0 110.3 35 Defense and space equipment 3.67 180.3 178.0 178.4 179.5 181.0 182.0 184.6 184.9 185.8 185.2 186.5 186.6 186.5 187.4 Intermediate products 36 Construction supplies 5.95 124.7 123.5 124.1 124.0 125.4 125.9 126.3 126.8 127.9 128.3 128.4 128.5 127.9 128.6 37 Business supplies 6.99 146.4 145.0 147.9 148.6 148.4 146.4 149.3 149.7 149.8 148.3 149.4 150.0 150.3 38 General business supplies 5.67 150.6 148.3 151.6 153.3 152.5 151.2 154.1 153.7 154.3 153.3 154.1 154.6 154.5 39 Commercial energy products 1.31 128.3 130.7 131.9 128.3 130.6 125.8 128.8 132.4 130.3 126.8 128.8 130.4 132.3 Materials 40 Durable goods materials 20.50 119.7 118.4 117.8 118.8 118.8 118.9 119.2 120.4 120.7 120.5 121.5 121.6 121.5 121.8 41 Durable consumer parts 4.92 98.5 96.4 96.3 96.7 95.2 95.3 97.0 98.0 98.8 99.0 100.0 98.8 96.4 96.1 42 Equipment parts 5.94 153.9 152.3 151.8 154.3 155.6 154.8 153.5 154.5 154.2 154.0 155.6 155.8 156.3 156.8 43 Durable materials n.e.c 9.64 109.4 108.8 107.9 108.2 108.1 108.8 109.4 110.7 111.2 110.8 111.5 112.3 113.0 113.4 44 Basic metal materials 4.64 80.0 78.9 76.7 77.4 76.9 78.4 78.8 82.1 80.3 79.2 80.3 80.9 81.5 45 Nondurable goods materials 10.09 118.3 116.5 117.7 118.9 119.7 120.6 120.3 120.2 123.2 123.2 122.5 122.7 124.1 124.7 46 Textile, paper, and chemical materials 7.53 118.9 116.9 118.2 119.0 120.5 121.8 121.3 121.0 124.7 125.0 123.6 124.0 125.3 126.0 47 Textile materials 1.52 110.6 108.4 109.5 111.2 113.4 116.0 114.3 115.6 116.1 116.5 115.8 117.6 119.0 48 Pulp and paper materials 1.55 132.1 128.6 132.7 135.6 136.0 133.7 133.5 134.2 140.2 137.9 136.7 134.7 134.9 49 Chemical materials 4.46 117.1 115.7 116.1 115.9 117.5 119.7 119.5 118.5 122.3 123.4 121.8 122.4 124.2 50 Miscellaneous nondurable materials 2.57 116.5 115.3 116.4 118.3 117.2 117.1 117.5 117.6 118.5 118.0 119.0 119.0 51 Energy materials 11.69 99.9 100.5 100.8 99.9 97.9 98.0 96.9 98.7 98.8 98.9 97.6 96.9 97.8 98.4 52 Primary energy 7.57 105.5 106.7 106.5 104.8 103.7 103.8 102.7 104.8 105.1 104.1 102.6 101.5 102.0 53 Converted fuel materials 4.12 89.6 89.2 90.4 90.9 87.3 87.4 86.2 87.6 87.3 89.4 88.5 88.5 90.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • August 1987 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued 1977 SIC pro- 1986 Grouping code por- avg. tion May June July Aug. Sept. Oct. Nov. Dec Jan. Feb/ Mar. Apr .p May Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 103.4 103.1 102.6 101.8 100.9 100.8 100.7 102.6 101.9 101.9 101.3 101.3 101.7 102.2 2 Mining 9.83 99.6 99.8 98.9 97.1 96.4 96.2 95.6 97.4 96.7 97.2 96.2 96.4 96.5 96.3 3 Utilities 5.96 109.6 108.5 108.6 109.7 108.3 108.3 109.3 111.2 110.6 109.5 109.6 109.3 110.4 111.9 4 Manufacturing 84.21 129.1 128.2 128.3 129.2 129.5 129.5 129.9 130.3 131.1 131.1 132.0 132.2 132.0 132.7 5 Nondurable 35.11 130.9 129.9 131.2 131.7 132.2 131.4 132.3 132.7 133.7 134.1 134.3 134.6 135.1 135.9 6 Durable 49.10 127.9 127.0 126.2 127.4 127.5 128.1 128.1 128.6 129.2 129.0 130.4 130.5 129.8 130.4 Mining 7 Metal 10 .50 72.0 65.9 69.2 70.9 70.7 68.5 68.3 73.5 72.1 72.0 71.6 8 Coal 11.12 1.60 124.2 124.0 127.3 120.2 122.2 120.8 117.6 130.1 124.3 133.5 127.7 121.8 121.6 122.9 9 Oil and gas extraction 13 7.07 94.7 95.1 93.3 92.4 90.7 91.0 90.5 90.4 90.9 89.9 89.5 91.0 91.2 90.6 10 Stone and earth minerals 14 .66 113.9 112.4 114.5 111.8 114.8 111.7 116.4 115.2 109.6 107.1 110.0 111.2 112.4 Nondurable manufactures 11 Foods 20 7.96 133.6 133.7 134.6 134.3 135.1 134.3 133.7 134.4 135.3 135.3 135.7 136.1 135.9 12 Tobacco products 21 .62 96.6 101.6 97.6 97.9 97.1 89.8 100.1 96.8 92.9 89.1 98.7 100.7 13 Textile mill products 22 2.29 113.2 111.3 112.6 113.4 114.7 116.0 116.1 117.8 118.4 118.0 118.4 118.8 120.5 14 Apparel products 23 2.79 103.6 102.6 101.7 102.5 102.5 102.7 104.2 105.1 107.2 107.4 106.7 15 Paper and products 26 3.15 136.4 133.2 137.2 138.1 138.6 136.9 137.8 139.5 141.6 139.8 140.5 139.2 138.4 16 Printing and publishing 27 4.54 163.4 161.9 164.0 165.4 164.6 163.0 167.8 168.5 167.7 168.1 166.7 167.9 169.2 171.6 17 Chemicals and products 28 8.05 133.0 131.5 134.2 134.1 134.4 133.9 133.9 132.3 134.6 137.4 137.7 138.2 139.0 18 Petroleum products 29 2.40 92.1 95.7 91.8 90.6 94.0 93.3 91.1 92.0 92.5 94.7 91.9 91.4 92.6 92.3 19 Rubber and plastic products... 30 2.80 153.3 150.1 152.2 155.5 155.5 154.9 157.6 159.0 160.7 158.1 159.2 160.2 162.2 20 Leather and products 31 .53 61.3 59.5 57.9 61.9 62.0 59.4 60.2 61.3 59.4 58.3 59.6 59.1 59.3 Durable manufactures 21 Lumber and products 24 2.30 123.4 121.6 120.9 120.8 122.5 125.0 125.9 129.5 133.1 130.2 130.0 129.6 130.6 22 Furniture and fixtures 25 1.27 146.7 146.2 147.1 149.5 148.3 147.7 149.2 148.6 150.5 148.7 151.8 153.8 155.7 23 Clay, glass, stone products.. .. 32 2.72 120.2 120.2 120.8 119.6 119.7 121.6 118.1 120.6 121.7 122.8 121.5 122.6 121.5 24 Primary metals 33 5.33 75.8 74.8 71.4 73.6 73.4 74.1 74.2 76.8 73.5 73.6 76.3 77.5 76.8 77.4 25 Iron and steel 331.2 3.49 63.4 60.2 58.3 61.7 60.8 61.1 62.2 64.8 60.5 60.2 63.1 65.1 65.1 26 Fabricated metal products .... 34 6.46 107.4 106.5 106.6 105.7 105.9 107.3 108.3 107.1 108.3 108.0 108.2 108.6 108.6 109.0 27 Nonelectrical machinery 35 9.54 141.9 141.3 140.4 142.6 142.6 140.9 142.2 141.2 139.9 140.3 142.3 143.7 144.3 145.3 28 Electrical machinery 36 7.15 166.5 166.0 163.2 166.8 167.2 166.9 167.7 168.3 170.2 169.2 169.3 167.7 166.4 166.7 29 Transportation equipment 37 9.13 125.8 124.1 125.1 125.6 125.1 127.7 125.2 125.6 127.0 128.1 131.8 130.6 126.9 127.7 30 Motor vehicles and parts.... 371 5.25 110.9 108.7 110.6 111.2 108.2 112.2 107.1 107.9 111.2 112.2 117.8 115.5 109.3 110.2 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 146.1 145.0 144.7 145.2 148.0 148.7 149.7 149.6 148.4 149.6 150.7 151.1 150.7 151.4 32 Instruments 38 2.66 141.3 140.3 139.9 141.7 142.0 141.7 140.3 141.1 142.4 142.5 143.3 142.2 143.1 143.0 33 Miscellaneous manufactures. . . 39 1.46 99.3 101.0 98.3 97.5 98.3 97.7 99.0 98.9 103.1 101.8 101.1 102.2 101.5 Utilities 34 Electric 44..1177 112222..22 112211..77 112233..11 112255..44 112222..44 112222..88 112233..88 112255..11 112233..55 112211..77 112222..33 112233..33 112233..77 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,702.2 1,687.6 1,676.7 1,669.9 1,681.3 1,677.8 1,683.9 1,690.8 1,701.9 1,707.1 1,721.4 1,723.6 1,712.2 1,721.4 36 Final 405.7 1,314.5 1,301.1 1,289.5 1,282.7 1,292.6 1,292.3 1,292.5 1,297.6 1,306.7 1,315.1 1,331.9 1,330.2 1,317.6 1,322.6 37 Consumer goods . 272.7 853.8 852.4 843.8 842.4 846.9 839.8 839.3 847.2 860.5 865.5 869.7 870.1 861.1 863.0 38 Equipment 133.0 458.2 448.7 445.7 440.4 445.7 452.5 453.2 450.4 446.2 449.6 462.2 460.0 456.5 459.6 39 Intermediate 111.9 387.6 386.4 387.2 387.1 388.7 385.5 391.4 393.2 395.3 391.9 389.5 393.4 394.6 398.8 • 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 1987 July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar.' Apr. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1.682 1,733 1,750 1,778 1,728 1,687 1,664 1,667 1,862 1,652 1,676 1,719 1,598 1 1-family 922 957 1,071 1,098 1,059 1,071 1,036 1,028 1,184 1,085 1,204 1,150 1,058 3 2-or-more-family 759 777 679 680 669 616 628 639 678 567 472 569 540 4 Started 1,749 1,742 1,805 1,786 1,800 1,689 1,657 1,637 1,813 1,816 1,838 1,730 1,665 5 1-family 1,084 1,072 1,179 1,147 1,180 1,123 1,114 1,129 1.233 1,253 1,303 1,211 1,222 6 2-or-more-family 665 669 626 639 620 566 543 508 580 563 535 519 443 7 Under construction, end of period1 1,051 1,063 1,074 1,154 1,163 1,154 1,142 1,125 1,104 1,089 1,096 1,085 1,075 8 1-family 556 539 583 620 628 627 625 619 610 609 621 617 624 9 2-or-more-family 494 524 490 534 534 527 518 506 494 480 476 469 450 10 Completed 1,652 1,703 1,756 1,750 1,757 1,740 1,745 1,774 1,894 1,956 1,726 1,696 1,821 11 1-family 1,025 1,072 1,120 1,074 1,124 1,113 1,165 1,158 1,184 1,217 1,107 1,145 1,142 12 2-or-more-family 627 631 637 676 633 627 580 616 710 739 619 551 679 13 Mobile homes shipped 296 284 244 238 231 243 241 237 251 242 231 228 227 Merchant builder activity in 1-family units 14 Number sold 639 688 748 691 623 744 675 691 768 712' 742 722 777 15 Number for sale, end of period1 358 350 361 350 352 355 357 353 357 358' 358 357 355 Price (thousands of dollars)2 Median 16 Units sold 80.0 84.3 92.2 94.1 91.5 95.0 96.4 94.0 95.(X 98.5' 95.0 99.0 99.0 Average 17 Units sold 97.5 101.0 112.2 116.8 113.2 114.0 114.9 113.6 118.9' 122.1' 120.3 121.2 118.8 EXISTING UNITS (1-family) 18 Number sold 2,868 3,217 3,566 3,460 3,590 3,710 3,760 3,850 4,060 3,470 3,690 3,680 3,560 Price of units sold (thousands of dollars)2 19 Median 72.3 75.4 80.3 79.9 82.0 80.3 79.4 80.4 80.8 82.4 85.0 85.6 85.0 20 Average 85.9 90.6 98.3 99.2 100.3 98.2 97.3 99.1 100.6 100.3 104.3 104.7 105.0 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 327,209 355,570 377,903 380,722 382,603 382,581 388,471 383,142 378,527 381,084 386,797 382,411 384,141 ?.?.P rivate 271,973 292,792 306,697 309,003 310,155 308,617 315,267 311,668 305,489 307,199 311,325 306,011 307,911 73 Residential 155,148 158,818 175,597 178,821 178,761 178,480 186,962 185,716 181,514 185,373 184,915 184,659 184,192 74 Nonresidential, total 116,825 133,974 131,100 130,182 131,394 130,137 128,305 125,952 123,975 121,826 126,410 121,352 123,719 Buildings 25 Industrial 13,746 15,769 13,653 12,866 12,543 13,180 12,948 13,532 12,582 12,155 12,723 11,101 11,171 76 Commercial 48,100 59,626 52,084 58,132 60,054 58,001 56,220 54,884 54,419 51,908 55,363 53,390 54,362 71 Other 12,547 12,619 13,433 13,277 13,315 14,001 14,324 13,937 13,880 14,100 14,633 14,975 14,898 28 Public utilities and other 42,432 45,960 51,930 45,907 45,482 44,955 44,813 43,599 43,094 43,663 43,691 41,886 43,288 79 Public 55,232 62,777 71,204 71,719 72,448 73,964 73,204 71,474 73,039 73,885 75,472 76,401 76,230 30 Military 2,839 3,283 3,893 3,553 4,132 5,050 3,540 3,980 4,295 4,025 3,616 4,156 3,888 31 Highway 16,343 19,998 21,260 21,603 21,607 20,552 20,480 18,425 18,989 22,895 21,898 21,881 21,087 32 Conservation and development 4,654 4,952 4,728 4,415 4,294 4,841 4,754 4,516 5,038 5,100 4,759 4,833 5,297 33 Other 31,396 34,544 41,323 42,148 42,415 43,521 44,430 44,553 44,717 41,865 45,199 45,531 45,958 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

A44 Domestic Nonfinancial Statistics • August 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 MMMaaayyy 1986 1987 1987 111999888777 11998866 11998877 (((111999666777 MMaayy MMaayy === 111000000)))''' June Sept. Dec. Mar. Jan. Feb. Mar. Apr. May CONSUMER PRICES2 1 All items 1.6 3.8 1.6 2.0 2.5 6.2 .7 .4 .4 .4 .3 338.7 2 Food 2.6 4.9 3.9 8.4 4.1 2.5 .4 .3 -.1 .3 .5 332.5 3 Energy items -14.8 -.2 -12.6 -21.0 -9.9 26.1 3.0 1.9 1.0 .3 .2 366.9 4 All items less food and energy 4.0 4.2 3.3 3.7 3.7 5.2 .5 .3 .5 .5 .3 338.9 5 Commodities 1.0 3.2 .3 2.6 1.4 5.1 .6 .0 .7 .6 .3 270.7 6 Services 5.8 4.7 4.9 4.3 5.1 5.3 .5 .4 .4 .4 .3 413.2 PRODUCER PRICES 7 Finished goods -1.8 2.6 .7 -.4 1.8 3.9 .4 .1 .4 .7 .3 296.3 8 Consumer foods 2.0 4.3 8.2 11.2 1.0 -6.7 -1.8 -.5 .5 1.5 1.4 286.7 9 Consumer energy -28.4 -3.3 -20.7 -42.7 -12.5 57.6 7.7R 4.3' -.2 2.1 .0 516.5 10 Other consumer goods 2.4 2.7 .9 2.3 4.4 3.4 .5' -.4' .8 .2 -.2 264.4 11 Capital equipment 1.8 2.0 2.4 2.0 3.4 .1 .2 -.3 .1 .3 .1 311.9 12 Intermediate materials3 -4.3 1.8 -5.1 -1.5 -1.2 8.0 1.0 .5 .4 .3 .4 318.1 13 Excluding energy -.6 2.1 -1.2 1.5 1.2 3.3 .4 .1' .3 .2 .4 310.5 Crude materials 14 Foods -2.7 9.3 5.9 18.1 -2.7 -11.3 -3.1' -.3' .4 4.3 4.8 251.3 15 Energy -25.0 6.4 -29.1 -19.6 -.5 41.2 8.4' 1.4' -.9 1.7 2.7 606.9 16 Other -1.2 5.5 6.6 -24.1 8.5 16.3 4.5' .3' -.9 .7 2.4 263.1 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. 1986 1987 AAccccoouunntt 11998844 11998855 11998866 Q1 Q2 Q3 Q4 QL< GROSS NATIONAL PRODUCT 1 3,765.0 3,998.1 4,206.1 4,149.2 4,175.6 4,240.7 4,258.7 4,352.1 By source ~> Personal consumption expenditures 2,428.2 2,600.5 2,762.5 2,697.9 2,732.0 2,799.8 22,,882200..44 22,,885500..44 3 Durable goods 331.2 359.3 388.1 360.8 373.9 414.5 403.1 383.0 4 Nondurable goods 870.1 905.1 932.7 929.7 928.4 932.8 940.1 960.3 5 Services 1,227.0 1,336.1 1,441.7 1,407.4 1,429.8 1.452.4 1,477.2 1,507.0 Gross private domestic investment 662.1 661.1 683.6 708.3 687.3 675.8 663.2 722.1 7 Fixed investment 598.0 650.0 677.0 664.4 672.8 680.3 690.3 677.9 8 416.5 458.2 460.0 459.2 457.5 459.0 464.3 451.5 139.3 154.8 143.3 154.6 141.5 139.5 137.5 134.0 10 Producers' durable equipment 277.3 303.4 316.7 304.6 316.0 319.5 326.8 317.5 11 Residential structures 181.4 191.8 217.0 205.3 215.3 221.3 226.0 226.4 V Change in business inventories 64.1 11.1 6.7 43.8 14.5 -4.5 -27.1 44.2 13 Nonfarm 56.6 12.2 7.7 41.2 10.5 -10.3 -10.8 38.6 14 Net exports of goods and services -58.7 -78.9 -104.3 -93.7 -104.5 -108.9 -110.2 -107.9 IS 382.7 369.8 373.0 374.8 363.0 370.8 383.5 399.0 16 Imports 441.4 448.6 477.3 468.5 467.5 479.7 493.7 506.9 17 Government purchases of goods and services 733.4 815.4 864.2 836.7 860.8 874.0 885.3 887.6 18 311.3 354.1 366.2 355.7 367.6 369.3 372.1 364.8 19 State and local 422.2 461.3 498.0 480.9 493.3 504.7 513.2 522.8 By major type of product "><) 3,700.9 3,987.0 4,199.4 4,105.4 44,,116611..22 44,,224455..22 44,,228855..88 44,,330077..99 ">1 1,576.7 1,630.2 1.670.5 1,669.0 1.661.6 1,680.2 1,671.3 1,720.6 675.0 700.2 716.8 710.6 703.1 730.1 723.5 745.6 ">3 901.7 930.0 953.7 958.4 958.5 950.1 947.8 975.0 ">4 1,813.1 1,959.8 2,105.6 2,057.7 2,087.4 2,125.2 2,152.1 2.196.7 25 Structures 375.1 408.1 430.0 422.6 426.7 435.3 435.3 434.9 ?6 Change in business inventories 64.1 11.1 6.7 43.8 14.5 -4.5 -27.1 44.2 27 Durable goods 39.2 6.6 -1.0 28.6 -.1 -15.6 -16.9 31.4 28 Nondurable goods 24.9 4.5 7.7 15.3 14.6 11.1 -10.2 12.8 ->9 MEMO: Total GNP in 1982 dollars 3,489.9 3,585.2 3,674.9 3,655.9 3,661.4 3,686.4 33,,669966..11 33,,773399..44 NATIONAL INCOME 30 3,032.0 3,222.3 3,386.4 3,340.7 3,376.4 3,396.1 3,432.3 3,510.9 31 Compensation of employees 2,214.7 2,368.2 2,498.0 2,461.5 2,480.2 2,507.4 2,542.8 2.579.0 3"> 1,837.0 1,965.8 2,073.5 2,044.1 2,058.8 2,081.1 2,109.8 2,143.6 33 Government and government enterprises 346.2 372.2 395.7 387.2 392.5 398.4 404.4 413.0 34 Other 1,490.6 1,593.9 1,677.8 1,656.8 1,666.3 1,682.7 1.705.4 1,730.7 35 Supplement to wages and salaries 377.7 402.4 424.5 417.4 421.3 426.3 433.0 435.3 36 Employer contributions for social insurance 193.1 205.5 215.7 212.9 214.1 215.9 220.1 220.0 37 Other labor income 184.5 196.9 208.8 204.5 207.3 210.4 213.0 215.4 38 Proprietors' income1 236.9 254.4 278.8 265.3 289.1 277.5 283.2 296.1 39 Business and professional1 205.3 225.2 252.7 240.9 249.6 258.0 262.2 268.2 40 Farm1 31.5 29.2 26.1 24.4 39.5 19.6 21.0 27.8 41 Rental income of persons- 8.3 7.6 15.0 12.8 16.3 16.2 14.8 15.4 4? Corporate profits1 264.7 280.7 299.7 296.4 293.1 302.0 311.2 335.4 43 Profits before tax3 235.7 223.2 237.5 222.5 227.7 240.4 259.6 267.6 44 Inventory valuation adjustment -5.5 -.6 6.5 16.5 10.6 6.1 -7.2 -6.9 45 Capital consumption adjustment 34.5 58.1 56.6 57.3 54.8 55.5 58.8 74.7 46 Net interest 307.4 311.4 294.0 304.9 297,7 292.9 280.4 285.1 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

A44 Domestic Nonfinancial Statistics • August 1987 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1986 1987 AAccccoouunntt 11998844 11998855 11998866 Ql Q2 Q3 Q4 QK PERSONAL INCOME AND SAVING 1 Total personal income 3,110.2 3,314.5 3,485.7 3,432.6 3,483.3 3,498.8 3,527.9 3,587.9 2 Wage and salary disbursements 1,836.8 1,966.1 2,073.5 2,044.1 2,058.8 2,081.1 2,109.8 2,143.6 3 Commodity-producing industries 577.8 607.7 623.2 622.0 620.8 621.8 628.3 633.1 4 Manufacturing 439.1 460.1 471.2 470.5 468.8 470.0 475.4 477.9 5 Distributive industries 442.2 469.8 487.9 485.2 484.3 488.3 493.9 500.7 6 Service industries 470.6 516.4 566.7 549.6 561.3 572.6 583.2 596.9 7 Government and government enterprises 346.2 372.2 395.7 387.2 392.5 398.4 404.4 413.0 8 Other labor income 184.5 196.9 208.8 204.5 207.3 210.4 213.0 215.4 9 Proprietors' income1 236.9 254.4 278.8 265.3 289.1 277.5 283.2 296.1 10 Business and professional1 205.3 225.2 252.7 240.9 249.6 258.0 262.2 268.2 11 Farm1 31.5 29.2 26.1 24.4 39.5 19.6 21.0 27.8 12 Rental income of persons2 8.3 7.6 15.0 12.8 16.3 16.2 14.8 15.4 13 Dividends 74.7 76.4 81.2 79.1 81.1 82.0 82.7 84.1 14 Personal interest income 446.9 476.2 475.0 480.8 480.1 473.8 465.2 470.7 15 Transfer pavments 455.6 487.1 513.8 504.7 510.1 518.5 521.8 530.3 16 Old-age survivors, disability, and health insurance benefits.. . 235.7 253.4 266.8 263.2 264.1 269.6 270.2 273.7 17 LESS: Personal contributions for social insurance 133.5 150.2 160.3 158.6 159.5 160.8 162.4 167.7 18 EQUALS: Personal income 3,110.2 3.314.5 3,485.7 3,432.6 3,483.3 3,498.8 3,527.9 3,587.9 19 LESS: Personal tax and nontax payments 439.6 486.5 514.1 497.5 504.8 519.0 534.9 533.0 20 EQUALS: Disposable personal income 2.670.6 2.828.0 2.971.6 2,935.1 2,978.5 2,979.9 2,993.0 3.054.9 21 LESS: Personal outlays 2.501.9 2.684.7 2,857.4 2,789.4 2,825.5 2,895.8 2,918.8 2,948.4 22 EQUALS: Personal saving 168.7 143.3 114.2 145.6 153.1 84.1 74.2 106.5 MEMO Per capita (1982 dollars) 23 Gross national product 14.721.1 14.982.0 15,216.9 15,188.0 15,178.9 15,245.6 15,247.9 15.394.8 24 Personal consumption expenditures 9.475.4 9.713.7 10,015.3 9,857.1 9.984.4 10.124.0 10,089.9 10,040.3 25 Disposable personal income 10,421.0 10,563.0 10.773.0 10,723.0 10,886.0 10,776.0 10,708.0 10,762.0 26 Saving rate (percent! 6.3 5.1 3.8 5.0 5.1 2.8 2.5 3.5 GROSS SAVING 27 Gross saving 573.3 551.5 538.7 583.2 539.7 517.2 514.9 569.5 28 Gross private saving 674.8 687.8 679.0 708.3 713.0 650.5 644.3 689.7 29 Personal saving 168.7 143.3 114.2 145.6 153.1 84.1 74.2 106.5 30 Undistributed corporate profits' 91.0 107.3 109.4 115.5 106.6 108.8 106.4 115.2 31 Corporate inventory valuation adjustment -5.5 -.6 6.5 16.5 10.6 6.1 -7.2 -6.9 Capital consumption allowances 32 Corporate 253.9 268.2 280.3 275.3 278.9 281.6 285.5 228877..33 33 Noncorporate 161.2 169.0 175.1 171.8 174.4 176.0 178.2 180.7 34 Government surplus, or deficit (-), national income and -101.5 -136.3 -140.3 -125.1 -173.3 -133.3 -129.4 -120.3 product accounts -170.0 -198.0 -203.3 -195.0 -232.2 -197.4 -188.8 -170.4 35 Federal 68.5 61.7 63.1 69.9 58.9 64.0 59.4 50.2 36 State and local 571.4 545.9 541.7 579.6 544.3 527.5 515.5 580.7 662.1 661.1 683.6 708.3 687.3 675.8 663.2 722.1 37 Gross investment -90.7 -115.2 -141.9 -128.6 -143.0 -148.3 -147.7 -141.4 38 Gross private domestic -1.9 -5.5 3.0 -3.6 4.6 10.3 .6 11.2 39 Net foreign 40 Statistical discrepancy 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 1986' 1987 IItteemm ccrreeddiittss oorr ddeebbiittss 11998844'' 11998855''"" 11998866'' QI Q2 Q3 Q4 QI" 1 Balance on current account -107.013 -116,394 -141,352 -33,040 -33,755 -36,583 -37,977 -37,122 -30,090 -34,634 -40,230 -36,398 -33,866 3 Merchandise trade balance" -112,522 -122.148 -144,339 -34,978 -33,651 -37,115 -38,595 -38,330 4 Merchandise exports 219,900 215,935 224,361 53,878 56,928 56,534 57,021 58,212 Merchandise imports -332,422 -338,083 -368,700 -88,856 -90,579 -93,649 -95,616 -96,542 6 Military transactions, net -1,942 -3.338 -3,662 -1,298 -1,054 -815 -495 198 7 Investment income, net3 18,490 25,398 20,844 6,425 4,587 5.339 4,492 3,836 8 Other service transactions, net 1,138 -1.005 1,463 -168 530 342 759 264 9 Remittances, pensions, and other transfers -3,637 -4.079 -3,885 -943 -918 -875 -1,151 -993 10 U.S. government grants (excluding military) -8,541 -11.222 -11.772 -2,078 -3,249 -3,459 -2,987 -2,097 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,476 -2.831 -1.920 -240 -242 -1,454 15 219 12 Change in U.S. official reserve assets (increase, -) -3,130 -3,858 312 -115 16 280 132 1,956 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -979 -897 -246 -274 -104 163 -31 76 15 Reserve position in International Monetary Fund -995 908 1,500 344 366 508 283 606 16 Foreign currencies -1,156 -3,869 -942 -185 -246 -391 -120 1,274 17 Change in U.S. private assets abroad (increase, -) -13,685 -24,711 -94,374 -13,415 -25,303 -23,304 -32,351 16,517 18 Bank-reported claims -11,127 -1,323 -59,039 6.373 -14.734 -18,878 -31.8(H) 27.802 19 5,019 1,361 -3,986 -2,947 -1,894 685 170 20 U.S. purchase of foreign securities, net -4,756 -7.481 -3,302 -5,886 -1,149 620 3.113 -1,317 21 U.S. direct investments abroad, net -2,821 -17,268 -28,047 -10,955 -7,526 -5.731 -3,834 -9,968 22 Change in foreign official assets in the United States (increase, +) 2.987 -1,140 34,698 2,576 15,568 15,551 1,003 14,123 23 U.S. Treasury securities 4.690 -838 34,515 3,238 14,538 12.167 4,572 11,999 24 Other U.S. government obligations 13 -301 -1,214 -177 -644 -276 -117 -51 25 Other U.S. government liabilities4 586 823 1,723 406 925 999 -607 -1,421 26 Other U.S. liabilities reported by U.S. banks 555 645 554 -1,254 1.280 2,963 -2.435 3,964 27 Other foreign official assets- -2,857 -1.469 -880 363 -531 -302 -410 -368 28 Change in foreign private assets in the United States (increase, -t-)3 99,481 131,012 178,689 33,746 33,475 54,040 57,428 13.435 29 U.S. bank-reported liabilities 33,849 41,045 77,350 8,487 3,899 30,360 34,604 -13,836 30 4,704 -450 -2.791 -2,193 -1,553 -80 1,035 31 Foreign private purchases of U.S. Treasury securities, net . 23,001 20.433 8,275 7.035 3,705 609 -3.074 5,445 32 Foreign purchases of other U.S. securities, net 12,568 50.962 70,802 18,571 22,888 17,074 12,269 18.454 33 Foreign direct investments in the United States, net 25,359 19,022 25,053 1,846 4,536 6,077 12,594 3,372 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 26,837 17,920 23.947 10,488 10,241 -8,530 11,750 -9,128 36 22,,229944 --22,,004444 --44,,115533 33,,990044 22..774499 37 Statistical discrepancy in recorded data before seasonal adjustment 26,837 17,920 23.947 8,194 12,285 -4.377 7,846 -11,877 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,130 -3,858 312 -115 16 280 132 1,956 39 Foreign official assets in the United States (increase, + ) ... 2,401 -1,963 32,975 2,170 14,643 14.552 1,610 15,544 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) -4,504 -6,709 -8,508 1,876 -2,166 -3.023 -5,195 -2,941 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 153 46 101 19 11 19 53 10 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Primarily associated with military sales contracts and other transactions 38-41. arranged with or through foreign official agencies. 2. Data are on an international accounts (1A) 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 • August 1987 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are not seasonally adjusted. 1986 1987 IItteemm 11998833 11998844 11998855 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 200,486 217,865 213.146 19.330 18.595 18,431 16.421 18,660 21.064 20.141 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 258.048 325.726 345.276 30.018 36.187 27.795 27,466 32.307 33.197' 31.983 3 Trade balance -57,562 107,861 -132,129 -10,688 -17,592 -9,364 -11,045 -13,647 12,134 -11,842 NOTE. The data through 1981 in this table are reported by the Bureau of Census not covered in Census statistics, and (2) the exclusion of military sales (which are data of a free-alongside-ship (f.a.s.) value basis—that is. value at the port of combined with other military transactions and reported separately in the "service export. Beginning in 1981. foreign trade of the U.S. Virgin Islands is included in account" in table 3.10, line 6). On the import side, additions are made for gold, the Census basis trade data; this adjustment has been made for all data shown in ship purchases, imports of electricity from Canada, and other transactions: the table. Beginning with 1982 data, the value of imports are on a customs military payments are excluded and shown separately as indicated above. As of valuation basis. Jan. 1. 1987 census data are released 45 days after the end of the month. 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). the export side, the largest adjustments are: (1) the addition of exports to Canada 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1986 1987 TTyyppee 11998833 11998844 11998855 Nov. Dec. Jan. Feb. Mar. Apr. May'' 1 Total 33,747 34,934 43,186 47,824 48,517 49,386 49,358 48,824 46,591 45,920 2 Gold stock, including Exchange Stabilization Fund1 11,121 11,096 11,090 11,070 11.064 11.062 11,085 11.081 11.076 11.070 3 Special drawing rights2 3 5,025 5,641 7,293 8.310 8.395 8.470 8.615 8,740 8,879 8.904 4 Reserve position in International Monetarv Fund" 11,312 11,541 11.947 11.659 11.730 11,872 11,699 11.711 11,745 11.524 5 Foreign currencies4 6.289 6.656 12,856 16.785 17,328 17,982 17,959 17.292 14.891 14.422 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 tine 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 1987 AAsssseettss 11998833 11998844 11998855 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Deposits 190 267 480 224 287 226 255 268 342 319 Assets held in custody 2 U.S. Treasury securities1 117,670 118.000 121.004 156.919 155,835 159.597 160,942 167,423 172,929 175.849 3 Earmarked gold" 14.414 14.242 14,245 14.057 14,048 14.041 14,046 14,036 14.031 14,031 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 tine 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 1987 1V53 Oct. Nov. Dec. Jan. Feb. Mar. Apr.P All foreign countries 1 Total, all currencies 477,090 453,656 458,012 446,581 446,618 456,628 458,305 457,819 456,655 484,827 1 Claims on United States 115,542 113.393 119,706 112,078 108,420 113,178 115,273 113,815 111,865 127,643 3 Parent bank 82.026 78,109 87,201 79.999 76,280 81,985 83,185 81,953 81,325 93,414 4 Other banks in United States2 1 13,664 13,057 11,659 12,034 13,685 12,723 13,158 13,044 15,189 5 Nonbanks2 21,620 19,448 20,420 20,106 17,508 19,365 18,704 17,496 19,040 6 Claims on foreigners 342,689 320.162 315,676 305,562 308,322 314,340 311,411 312,096 311,599 322,390 7 Other branches of parent bank 96,004 95,184 91,399 90.412 91,576 97,788 93,290 90.326 89,200 93,288 8 Banks 117,668 100,397 102,960 100,707 103,293 105,237 105,377 109,748 109,580 116,057 9 Public borrowers 24,517 23,343 23,478 24.215 23,314 23,584 23,337 23.192 23,579 23,483 10 Nonbank foreigners 107,785 101,238 97.839 90.228 90,139 87,731 89,407 88,830 89,240 89,562 11 Other assets 18,859 20,101 22,630 28,941 29,876 29,110 31.621 31.908 33,191 34,794 12 Total payable in U.S. dollars 371,508 350,636 336,520 309,087 306,683 317,487r 309,719 311,669 306,079 328,920 n Claims on United States 113,436 111,426 116,638 107,612 104.281 109,235' 110,596 109.341 107,016 121,852 14 Parent bank 80,909 77,229 85,971 78,335 74,762 80,575 81,423 80,359 79.465 91,459 15 Other banks in United States2 1 13.500 12.454 10,544 10,986 12,830 11,531 12,102 11,907 13,380 16 Nonbanks2 20,697 18,213 18,733 18,533 15,830 17,642 16,880 15,644 17,013 17 Claims on foreigners 247.406 228.600 210,129 190,030 190,656 196,448 187,296 189,875 185,418 192,802 18 Other branches of parent bank 78,431 78.746 72,727 67.835 67,841 73,704 67,479 65,220 63,983 66,535 19 Banks 93,332 76.940 71.868 62,836 64,920 66,421 63.637 68.320 65,997 70,304 20 Public borrowers 17,890 17,626 17,260 17,455 16,820 16,586 16,459 16,320 16,224 16,512 21 Nonbank foreigners 60,977 55,288 48,274 41,904 41,075 39,737 39,721 40,015 39,214 39,451 22 Other assets 10.666 10,610 9,753 11,445 11,746 11,804 11,827 12,453 13,645 14,266 United Kingdom 23 Total, all currencies 158,732 144,385 148,599 142,398 143,806 140,917 144,093 146,188 145,486 149,998 24 Claims on United States 34,433 27,675 33,157 30,747 28,940 24,599 28,720 28,851 28,503 31,001 25 Parent bank 29,111 21.862 26,970 24,800 22,671 19,085 23,330 23.326 23,303 25,315 76 Other banks in United States2 1 1.429 1,106 1,314 1,534 1,612 1,220 1,258 1,288 1,564 77 Nonbanks2 4,384 5.081 4,633 4,735 3,902 4,170 4,267 3,912 4,122 28 Claims on foreigners 119,280 111,828 110,217 105,534 108.153 109,508 108,720 110,274 109,297 111,113 29 Other branches of parent bank 36.565 37,953 31,576 31,268 29,966 33,422 30,218 29,575 28,782 29,555 30 Banks 43.352 37.443 39,250 37,836 41,145 39,468 40,677 43,189 42,537 43,369 31 Public borrowers 5,898 5,334 5,644 5,157 5,038 4,990 4,942 4,983 4,897 4,964 32 Nonbank foreigners 33.465 31,098 33,747 31,273 32,004 31,628 32,883 32,527 33.081 33,225 33 Other assets 5,019 4,882 5,225 6,117 6,713 6,810 6,653 7,063 7.686 7,884 34 Total payable in U.S. dollars 126,012 112,809 108,626 97,295 97,125 95,028 95,359 97,568 95,319 99,398 35 Claims on United States 33,756 26,868 32,092 29,312 27,564 23,193 27,070 27,290 26,665 29,066 36 Parent bank 28,756 21,495 26.568 24,323 22,106 18.526 22,673 22,749 22,662 24,689 37 Other banks in United States2 1,363 1,005 1.110 1,364 1,475 996 1,061 980 1,192 38 Nonbanks2 4,010 4,519 3,879 4,094 3,192 3.401 3,480 3,023 3,185 39 Claims on foreigners 88,917 82,945 73.475 64,873 66,304 68,138 65,022 66,872 64,466 66,257 40 Other branches of parent bank 31,838 33,607 26.011 24,632 23,229 26,361 22,720 22.578 21.785 21.958 41 Banks 32,188 26,805 26.139 21.011 24,020 23,251 23,656 25,685 24,225 25,370 42 Public borrowers 4,194 4,030 3.999 3,859 3,811 3,677 3,683 3,716 3,660 3,712 43 Nonbank foreigners 20,697 18,503 17,326 15,371 15,244 14,849 14,963 14,893 14,796 15,217 44 Other assets 3.339 2,996 3,059 3,110 3,257 3,697 3,267 3,406 4,188 4,075 Bahamas and Caymans 45 Total, all currencies 152,083 146,811 142,055 134,060 131,363 142,592 135,627 133,229 133,837 146,437 46 Claims on United States 75,309 77.296 74,864 68,624 66,078 76,663 72,643 68,238 67,357 77,822 47 Parent bank 48,720 49,449 50,553 44,476 42,223 53,068 48,036 44,124 41,150 51,747 48 Other banks in United States2 11,544 11.204 9,557 9,628 11,156 10,625 10,924 10,855 12,561 49 Nonbanks2 16,303 13,107 14,591 14,227 12,439 13,982 13,190 12,352 13,514 50 Claims on foreigners 72,868 65,598 63.882 59,612 59,436 61,390 57,825 59,671 60,643 62,857 51 Other branches of parent bank 20,626 17,661 19.042 16,985 18,139 18,803 16,258 16,151 16,529 16,562 52 Banks 36,842 30,246 28,192 26,205 25,743 27,476 26,366 28,139 28,568 31,005 53 Public borrowers 6,093 6,089 6.458 7.263 6,697 6,929 7,026 6,974 6,915 7,120 54 Nonbank foreigners 12,592 11,602 10.190 9,159 8,857 8,182 8,175 8,407 8.631 8.170 55 Other assets 3,906 3.917 3,309 5,824 5,849 4,539 5,159 5,320 5,837 5,758 56 Total payable in U.S. dollars 145,641 141,562 136,794 127,361 124,801 136,813 129,474 126,605 126,808 138,445 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 • August 1987 3.14 Continued 1986 1987 Oct. Nov. Dec. Jan. Feb. Mar. Apr.'' All foreign countries 57 Total, all currencies 477,090 453,656 458,012 446,581 446,618 456,628 458,305 457,819 456,655 484,827 58 Negotiable CDs' n.a. 37,725 34,607 32.444 32.926 31.629 33,395 36,074 34,873 33,155 59 To United States 188.070 147,583 155.538 141,126 137.029 151.632 140,089 140,046 141,341 152,447 60 Parent bank 81,261 78,739 83.914 75,777 75.062 82.561 70,047 73,095 70,866 74,772 61 Other banks in United States 29,453 18.409 16.894 14,791 14,532 15.646 15,068 13,602 13,695 16,913 62 Nonbanks 77.356 50.435 54,730 50,558 47,435 53.425 54,974 53,349 56,780 60,762 63 To foreigners 269,685 247,907 245.939 253,202 256,611 253.775 264.463 261,944 260,585 277,918 64 Other branches of parent bank 90.615 93.909 89.529 87.883 87,993 95.146 90,303 88,524 87,867 94,559 65 Banks 92,889 78.203 76.814 80.709 83,784 77,809 89,199 86.474 84,976 92.647 66 Official institutions 18,896 20.281 19,520 19,436 18,831 17.835 19.532 19,818 20.591 21,293 67 Nonbank foreigners 68.845 55,514 60,076 65.174 66,003 62.985 65,429 67.128 67.151 69,419 68 Other liabilities 19.335 20.441 21,928 19.809 20,052 19,592 20,358 19.755 19,856 21,307 69 Total payable in U.S. dollars 388,291 367,145 353,712 323,699 320,348 336,406 323,900 325,951 321,354 340,161 70 Negotiable CDs' n.a. 35.227 31.063 29,206 29,752 28,466 29.921 32.407 31.148 29,505 71 To United States 184,305 143.571 150.162 133.301 129,224 143,650 131.557 131,617 132,413 141.126 72 Parent bank 79,035 76,254 80.888 71,858 71.017 78,472 65,419 68,540 65,755 68,064 73 Other banks in United States 28,936 17,935 16.264 13,768 13,679 14.609 14,047 12,505 12.593 15,455 74 Nonbanks 76,334 49.382 53.010 47,675 44.528 50.569 52,091 50.572 54,065 57,607 75 To foreigners 194,139 178.260 163.583 153,536 153.972 156.806 155,182 154,343 149,949 161,216 76 Other branches of parent bank 73,522 77,770 71,078 65.077 64,178 71,181 64,380 63.272 62,172 67,278 77 Banks 57,022 45.123 37.365 33.802 35,306 33,850 37,159 37,253 35,116 39,111 78 Official institutions 13,855 15,773 14,359 13.320 13.139 12,371 13,688 13.189 13,392 14.318 79 Nonbank foreigners 51,260 39.594 40.781 41.337 41.349 39,404 39,955 40,629 39,269 40,509 80 Other liabilities 9,847 10,087 8.904 7,656 7,400 7.484 7,240 7,584 7,844 8,314 United Kingdom 81 Total, all currencies 158,732 144,385 148,599 142,398 143,806 140,917 144,093 146,188 145,486 149,998 82 Negotiable CDs1 n.a. 34,413 31,260 28,847 28,984 27,781 29,432 32.233 30,968 29,311 83 To United States 55,799 25,250 29,422 24.610 22,585 24,657 19.465 22,501 21,433 23,967 84 Parent bank 14,021 14.651 19.330 14,014 13.811 14,469 10.004 12,735 12,332 13,201 85 Other banks in United States 11.328 3.125 2.974 2,382 2,184 2,649 2.154 2.154 1,816 2,205 86 Nonbanks 30,450 7.474 7.118 8.214 6.590 7,539 7,307 7,612 7,285 8.561 87 To foreigners 95.847 77.424 78.525 80.252 83,455 79,498 86,229 82,418 83.723 87,350 88 Other branches of parent bank 19,038 21.631 23.389 24,194 23,739 25,036 23.595 21,230 21,371 22,390 89 Banks 41,624 30,436 28,581 31.001 34,321 30,877 36,479 35,434 35,971 37.562 90 Official institutions 10,151 10,154 9,676 8.068 7.875 6,836 8,484 7,832 7,827 8.871 91 Nonbank foreigners 25,034 15,203 16.879 16.989 17.520 16,749 17,671 17,922 18,554 18.527 92 Other liabilities 7,086 7.298 9.392 8.689 8,782 8.981 8,967 9,036 9.362 9.370 93 Total payable in U.S. dollars 131,167 117,497 112,697 99,820 99,327 99,707 98,741 101,603 98,967 101,793 94 Negotiable CDs3 n.a. 33,070 29,337 26.927 27,166 26,169 27.701 30,175 28,868 27.189 95 To United States 54,691 24,105 27.756 21.960 20,055 22,075 16.829 19.894 18,940 21,144 96 Parent bank 13,839 14,339 18,956 13.591 13,438 14,021 9,451 12,157 11,606 12,352 97 Other banks in United States 11,044 2,980 2,826 2.108 1.880 2,325 1,887 1.926 1,602 2,021 98 Nonbanks 29.808 6.786 5.974 6.261 4,737 5,729 5,491 5,811 5,732 6,771 99 To foreigners 73.279 56.923 51,980 47,491 49,056 48,138 51.174 48,242 47,531 49.708 100 Other branches of parent bank 15.403 18.294 18,493 17.289 16,695 17.951 16,386 14,323 14,471 14.367 101 Banks 29,320 18,356 14.344 14.123 15.984 15.203 18.626 18,207 18.027 19,498 102 Official institutions 8,279 8,871 7,661 5,685 5,655 4.934 6.096 5.176 4,924 5,786 103 Nonbank foreigners 20,277 11.402 11.482 10.394 10,722 10,050 10,066 10,536 10,109 10,057 104 Other liabilities 3.197 3.399 3.624 3.442 3,050 3,325 3.037 3.292 3,628 3,752 Bahamas and Caymans 105 Total, all currencies 152,083 146,811 142,055 134,060 131,363 142,592 135,627 133,229 133,837 146,437 106 Negotiable CDs' n.a. 615 610 683 784 847 995 855 813 883 10/ To United States 111.299 102.955 103.813 95.840 94,493 105.248 98.733 95,221 98,560 107,028 108 Parent bank 50,980 47,162 44.811 43.470 43,572 48,648 40,845 40,409 39,625 42.976 109 Other banks in United States 16,057 13,938 12.778 11.144 11,131 11,715 11,687 10,151 10,568 13,345 110 Nonbanks 44.262 41,855 46,224 41.226 39,790 44,885 46,201 44,661 48,367 50,707 111 To foreigners 38.445 40,320 35.053 35.427 33,841 34,400 33,831 35,053 32.501 36.491 112 Other branches of parent bank 14.936 16,782 14.075 13.574 12,661 12,631 12,323 12,972 11,673 13,891 113 Banks 11.876 12.405 10.669 8.964 8,545 8.617 8.402 8,507 8,140 9,452 114 Official institutions 1.919 2.054 1.776 2.665 2,577 2.719 2.808 3.013 2.836 2,937 115 Nonbank foreigners 11,274 9.079 8.533 10.224 10,058 10,433 10,298 10,561 9,852 10,211 116 Other liabilities 2,339 2,921 2.579 2.110 2,245 2,097 2,068 2.100 1,963 2,035 117 Total payable in U.S. dollars 148,278 143,582 138,322 130.084 127,309 138,774 131,572 129,183 129,048 140,457 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' 1987 IItteemm 11998844'' 11998855'' Oct. Nov. Dec. Jan.' Feb.' Mar. Apr.'' 1 Total1 180,348 178,380 211,293 211,117 211,350 213,362 215,240 227,039 234,192 BY type 2 Liabilities reported by banks in the United States" 26,090 26,734 27.392 27.777 27,288 27.593 29,184 31,252 32,064 3 U.S. Treasury bills and certificates3 59,976 53,252 75.457 75,132 75,650 75.718 75,434 79,629 83.640 U.S. Treasury bonds and notes 4 Marketable 69,019 77,154 91.092 91,225 91,520 93.018 93,852 99,689 102,055 Nonmarketable4 5,800 3,550 1.3(H) 1.3(H) 1.3(H) 1.3(H) 1.3(H) 1.3(H) 1.3(H) 6 U.S. securities other than U.S. Treasury securities5 19,463 17,690 16.052 15,683 15,592 15,733 15,470 15,169 15,133 By area 7 Western Europe1 69,818 74.447 88.714 87,799 87,937 89.630 90,645 99.732 103.647 X Canada 1,528 1.315 1.699 1.892 2,(H)4 3,383 3,761 5,110 3.941 9 Latin America and Caribbean 8,565 11.148 10.146 9.096 8,368 7,681 7.426 8,242 9.407 10 Asia 93.701 86.448 105.350 105,509 106,023 107.448 108.886 108,642 110,240 11 Africa 1,263 1,824 1.717 1.545 1,503 1.3(H) 1.164 1,192 1,284 12 Other countries6 5,472 3,199 3.667 5,276 5,515 3.922 3,358 4,123 5,671 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 1986 1987'' IItteemm 11998822 11998833 11998844 June Sept. Dec. Mar. 1 Banks' own liabilities 5,219 8.586 15,368 24.130 29,353 29,481 36.436 Banks' own claims 7,231 11,984 16,294 21,264 24,567 25,441 31.748 3 2,731 4,998 8,437 11.413 13,716 13,359 13.929 4 Other claims 4,501 6,986 7,857 9,851 10,851 12,083 17.819 5 Claims of banks' domestic customers1 1,059 569 580 1,385 1,659 2,613 2,120 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 the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • August 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 1987 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998833 11998844 11998855 Oct. Nov. Dec. Jan. Feb. Mar. Apr." 1 All foreigners 369,607 407,306 435,726 501,095 512,653 537,778 524,912 521,876' 523,696 549,252 2 Banks' own liabilities 279,087 306,898 341,070 365.956 378,023 404,395 391,417 387,376' 388,481 410,133 3 Demand deposits 17,470 19,571 21,107 21,730 24.772 23,786 22,492 22,448 22,273 22,541 4 Time deposits' 90,632 110,413 117.278 123.752 125,618 131,281 125.010 125,364' 124.436 132,338 Other2 25,874 26,268 29,305 36.332 35,915 40,545 39,373 40,302' 42,216 44,690 6 Own foreign offices3 145,111 150,646 173,381 184.142 191,718 208,782 204,543 199,263' 199,555 210,564 7 Banks' custody liabilities4 90.520 100,408 94,656 135,139 134.630 133,383 133,495 134,500 135,216 139,118 8 U.S. Treasury bills and certificates5 68.669 76,368 69,133 91.305 90.351 90,257 89,278 90,695 93,048 97.489 9 Other negotiable and readily transferable instruments6 17,467 18,747 17,964 15,649 15,343 16,523 14,656 13,839 14,881 14,623 10 Other 4,385 5,293 7.558 28.184 28,936 26,603 29.561 29,966 27,287 27,006 11 Nonmonetary international and regional organizations7 5,957 4,454 5,821 3,902 4,315 4,826 5,081 4,520 3,739 6,830 12 Banks' own liabilities 4,632 2,014 2,621 2.426 2,944 2,977 3.732 2,193 2,360 5,236 13 Demand deposits 297 254 85 175 135 199 183 157 246 159 14 Time deposits' 3,584 1,267 2,067 1939 2,299 2,166 2.515 1.488 1,230 3,100 15 Other2 750 493 469 312 511 611 1,034 548 883 1,977 16 Banks' custody liabilities4 1,325 2,440 3,200 1.476 1,371 1,849 1,349 2,326 1,379 1,594 17 U.S. Treasury bills and certificates 463 916 1,736 308 262 259 86 1,213 154 428 18 Other negotiable and readily transferable instruments6 862 1,524 1,464 1.162 1,104 1.590 1,261 1,112 1,225 1,152 19 Other 0 0 0 6 5 0 2 1 0 14 20 Official institutions8 79,876 86,065 79,985 102,849 102,909 102,938 103,311 104,618' 110,882 115,705 21 Banks' own liabilities 19,427 19,039 20,835 24.268 25,165 24,796 25.367 26,626' 27,991 29,078 22 Demand deposits 1,837 1,823 2,077 1.840 2.188 2,267 1,487 1,513 1,923 1,979 23 Time deposits1 7,318 9,374 10,949 10.593 11.271 10,577 11,311 11,385 11,056 12,362 24 Other2 10,272 7,842 7.809 11.835 11,706 11,952 12,569 13,728'' 15,011 14,736 25 Banks' custody liabilities4 60,448 67,026 59,150 78.581 77,744 78,142 77,944 77,992 82,891 86,627 26 U.S. Treasury bills and certificates5 54,341 59,976 53,252 75.457 75,132 75,650 75,718 75,434 79.629 83,640 27 Other negotiable and readily transferable instruments6 6.082 6,966 5,824 2.920 2,480 2,347 2,158 2,418 3.129 2,832 28 Other 25 84 75 204 132 145 69 140 132 154 29 Banks' 226,887 248,893 275,589 314,433 325,392 349,605 339,131 335,083' 333,332 348,621 30 Banks' own liabilities 205,347 225,368 252,723 271.790 282,785 309,792 296,436 292,675' 294,185 310,238 31 Unaffiliated foreign banks 60.236 74,722 79,341 87.648 91,067 101,010 91,893 93,412' 94,630 99,674 32 Demand deposits 8,759 10,556 10,271 9.714 11,626 10,301 10,432 10.102' 9,509 9,779 33 Time deposits' 37,439 47,095 49,510 55.601 57,515 64,480 57.772 59.680' 61,267 64,750 34 Other2 14,038 17,071 19,561 22.333 21,927 26,229 23,689 23,630' 23,854 25.145 35 Own foreign offices3 145.111 150,646 173.381 184.142 191,718 208,782 204,543 199,263' 199,555 210.564 36 Banks' custody liabilities4 21,540 23,525 22,866 42.643 42,607 39,812 42,695 42,408 39,147 38,383 37 U.S. Treasury bills and certificates 10,178 11,448 9,832 10.601 10,491 9.962 9,826 10,486 9,744 9.527 38 Other negotiable and readily transferable instruments6 7,485 7,236 6,040 5.600 5,550 5,513 5,433 4.340 4,377 4,271 39 Other 3,877 4,841 6,994 26.442 26,566 24,338 27.436 27.582 25,026 24,586 40 Other foreigners 56,887 67,894 74,331 79,911 80,037 80,411 77,389 77,656' 75,744 78,095 41 Banks' own liabilities 49,680 60,477 64.892 67.472 67,129 66,830 65,882 65,882' 63,945 65.582 42 Demand deposits 6,577 6,938 8.673 10.000 10,824 11.019 10,389 10,676' 10,594 10,624 43 Time deposits 42,290 52,678 54.752 55.620 54,533 54,059 53,412 52,811' 50,883 52,126 44 Other2 813 861 1,467 1.852 1.772 1,752 2,081 2,395 2,468 2,831 45 Banks' custody liabilities4 7,207 7,417 9,439 12.439 12,908 13.580 11,507 11.774 11,798 12,514 46 U.S. Treasury bills and certificates 3,686 4,029 4,314 4,939 4,465 4,387 3,648 3,563 3,520 3,894 47 Other negotiable and readily transferable instruments6 3.038 3,021 4,636 5.968 6,209 7.074 5,804 5,969 6,150 6,368 48 Other 483 367 489 1.532 2,234 2.120 2,055 2.242 2,128 2,252 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,346 10,476 9,845 6.759 6,609 7,343 7.191 7,722 7,694 7.925 1. Excludes negotiable time certificates of deposit, which are included in securities, held by or through reporting banks. "Other negotiable and readily transferable instruments." 5. Includes nonmarketable certificates of indebtedness and Treasury bills 2. Includes borrowing under repurchase agreements. issued to official institutions of foreign countries. 3. U.S. banks: includes amounts due to own foreign branches and foreign 6. Principally bankers acceptances, commercial paper, and negotiable time subsidiaries consolidated in "Consolidated Report of Condition" filed with bank certificates of deposit. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of 7. Principally the International Bank for Reconstruction and Development, and foreign banks: principally amounts due to head office or parent foreign bank, and the Inter-American and Asian Development Banks. foreign branches, agencies or wholly owned subsidiaries of head office or parent 8. Foreign central banks and foreign central governments, and the Bank for foreign bank. International Settlements. 4. Financial claims on residents of the United States, other than long-term 9. Excludes central banks, which are included in "Official institutions." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 3.17 Continued 1986 1987 AArreeaa aanndd ccoouunnttrryy 11998833 11998844 11998855 Oct. Nov. Dec. Jan. Feb. Mar. Apr.'' 1 Total 369,607 407,306 435,726 501,095 512,653 537,778 524,912 521,876' 523,696 549,252 2 Foreign countries 363,649 402,852 429,905 497,193 508,338 532,953 519,831 517,356' 519,957 542,421 3 Europe 138,072 153,145 164.114 173,578 176,077 180,521 179,104 180,641' 182,075 189,551 4 Austria 585 615 693 972 1,197 1,186 972 928' 790 1,064 5 Belgium-Luxembourg 2,709 4.114 5,243 6,070 6,863 6,788 6,729 7,583' 7,210 7,923 6 Denmark 466 438 513 478 576 485 449 520 618 425 7 Finland 531 418 496 606 448 580 565 762 925 930 8 France 9,441 12,701 15,541 21.243 21,917 22,849 21,372 22,654'' 23,805 27,376 9 Germany 3,599 3,358 4,835 6,624 5,856 5,688 6,813 5,797'' 7,406 6,302 10 Greece 520 699 666 646 755 706 745 749 641 601 11 Italy 8,462 10,762 9,667 8,807 9,304 10,866 9,374 8,489' 10,088 10,331 1? Netherlands 4,290 4,731 4,212 4,858 4,410 5,558 5,075 5,224'' 4.894 5,962 13 Norway 1,673 1,548 948 654 512 745 678 554 490 572 14 Portugal 373 597 652 738 685 700 657 709 688 660 15 Spain 1,603 2,082 2,114 2,297 2,197 2,393 2,238 2,333' 2,192 2,205 1(S Sweden 1,799 1,676 1,422 1,016 1.301 889 884 1.062 1,052 1,344 17 Switzerland 32,246 31,740 29.020 29,695 30,406 31,239 28,886 27,555'' 27,569 26,468 18 Turkey 467 584 429 401 418 454 375 359 412 833 19 United Kingdom 60,683 68,671 76,728 84.308 84,913 85,336 87,871 89,905' 88,049 90,950 70 Yugoslavia 562 602 673 515 544 631 554 565 564 521 71 Other Western Europe1 7,403 7,192 9.635 3,141 3.308 2,705 4,309 4.322' 3,982 4.280 77 U.S.S.R 65 79 105 25 16 23 21 23 30 32 23 Other Eastern Europe- 596 537 523 484 452 702 535 546 669 771 24 Canada 16,026 16,059 17,427 24.340 25,753 26,256 26,072 25,116' 26.523 25.253 75 Latin America and Caribbean 140,088 153,381 167,856 191,916 189,773 208,057 195,263 191.441' 195,025 206,208 76 Argentina 4,038 4,394 6,032 5.718 5,202 4,754 4,497 4.668 4,756 4,461 77 Bahamas 55,818 56,897 57,657 64.106 62,613 72,347 64,945 62,968 62,390 71,562 78 Bermuda 2,266 2,370 2.765 1,918 2,549 2,965 2,295 2,392 2,281 2,162 79 Brazil 3,168 5,275 5,373 8.895 4,684 4,321 3,813 3,797'' 3,692 3,713 30 British West Indies 34,545 36,773 42,674 59.143 61,855 70,918 66,470 65,504' 69,748 68,983 31 Chile 1,842 2,001 2,049 2,398 2,325 2,053 2,208 2,046 2,060 2,252 37 Colombia 1,689 2,514 3,104 3,775 3,873 4,281 4,293 4,268'' 4,271 4,373 33 Cuba 8 10 11 6 6 7 6 7 6 6 34 Ecuador 1,047 1,092 1,239 1.217 1,199 1.235 1,049 1,120' 1,014 1,044 35 Guatemala 788 896 1,071 1.126 1.129 1,122 1,124 1,081 1.082 1,164 36 Jamaica 109 183 122 151 153 136 149 145 230 149 37 Mexico 10,392 12,303 14,060 13.209 13,488 13,631 13,484 13,363' 13,094 14,963 38 Netherlands Antilles 3,879 4,220 4,875 4.645 4,706 4,903 5,570 5,629 5,643 5,781 39 Panama 5,924 6,951 7.514 6,524 6,729 6,865 7,361 6,484' 6,670 7,125 40 Peru 1,166 1,266 1.167 1.167 1,146 1,163 1,110 1,131' 1,062 1,086 41 Uruguay 1,244 1,394 1,552 1.608 1,610 1,537 1,609 1,583 1,630 1,540 47 Venezuela 8,632 10.545 11,922 11,392 11,592 10,452 10,494 10,362' 10.365 10,562 43 Other Latin America and Caribbean 3,535 4,297 4,668 4,917 4,914 5,368 4,768 4,894 5,031 5,280 44 58,570 71,187 72,280 99,360 107,054 108,973 112,054 113,433' 108,879 112,554 China 45 Mainland 249 1,153 1,607 1,585 1,450 1,476 2.046 1,625' 1,948 1,889 46 Taiwan 4.051 4,990 7,786 16.534 17,540 18,903 19,553 21,127 20,131 19,451 47 Hong Kong 6,657 6,581 8,067 8,663 9,347 9,517 9,383 9,328' 9,160 9,334 48 India 464 507 712 755 701 673 664 686 500 523 49 Indonesia 997 1,033 1,466 1.530 1,528 1,548 1,410 1,591 1,377 1,460 50 Israel 1,722 1,268 1,601 1,986 2,380 1,890 1,761 1,892 1,666 1,451 51 Japan 18,079 21,640 23,077 41.340 46,184 47,436 49,997 50,920 48,971 53,132 57 Korea 1,648 1,730 1,665 1,446 1,128 1,146 1,063 1,022 1,134 1,172 53 Philippines 1,234 1,383 1,140 1,707 1,720 1,865 1,811 1,779 1,737 1,426 54 Thailand 747 1,257 1,358 1,115 1,083 1,120 1,282 1,224 1.235 1.131 55 Middle-East oil-exporting countries' 12,976 16,804 14,523 12,045 13.010 12,356 12,325 12.129' 11.576 11,393 56 Other Asia 9,748 12,841 9,276 10,654 10.984 11,042 10,760 10,110' 9,443 10,191 57 Africa 2,827 3,396 4,883 3,973 4,018 4,018 3,662 3,499' 3,475 3,702 58 Egypt 671 647 1,363 640 710 706 608 791 753 847 59 Morocco 84 118 163 86 84 92 74 76 99 101 60 South Africa 449 328 388 347 264 271 341 201' 196 287 61 Zaire 87 153 163 79 96 74 54 42 40 39 67 Oil-exporting countries 620 1,189 1,494 1.623 1,593 1,518 1,366 1,156 1,108 1,213 63 Other Africa 917 961 1.312 1.199 1,272 1,358 1,249 1,233 1,278 1,215 64 Other countries 8,067 5,684 3,347 4,026 5,662 5,128 3,674 3.226 3,981 5,153 65 Australia 7,857 5,300 2,779 2,943 4,286 4,205 2,677 2,459 3,020 4,266 66 All other 210 384 568 1.083 1,376 922 997 767 960 888 67 Nonmonetary international and regional organizations 5,957 4,454 5,821 3,902 4,315 4,826 5.081 4.520 3,739 6,830 68 International 5,273 3,747 4,806 2,748 3,232 3,512 3.958 3,606 2,747 5,561 69 Latin American regional 419 587 894 957 927 1,033 960 762 788 850 70 Other regional5 265 120 121 197 157 281 164 152 204 420 1. Includes the Bank for International Settlements. Beginning April 1978, also United Arab Emirates (Trucial States). includes Eastern European countries not listed in line 23. 4. Comprises Algeria. Gabon, Libya, and Nigeria. 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German 5. Asian, African, Middle Eastern, and European regional organizations, Democratic Republic, Hungary, Poland, and Romania. except the Bank for International Settlements, which is included in "Other 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • August 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 1987 AArreeaa aanndd ccoouunnttrryy 11998833 11998844 11998855 Oct. Nov. Dec. Jan. Feb. Mar. Apr.P 1 Total 391,312 400,162 401,608 407,832 418,485 444,458 420,632 417,437' 413,312 437,936 2 Foreign countries 391,148 399,363 400,577 407,460 418,313 441,475 420,570 417,259' 412,768 434,036 3 Europe 91,927 99.014 106,413 104,647 107,047 107.549 100,817 102,406r 99.183 107,868 4 Austria 401 433 598 595 748 738 654 559 660 747 5 Belgium-Luxembourg 5,639 4,794 5.772 7,712 8,149 7,511 7,571 8.920r 8.053 8,520 6 Denmark 1,275 648 706 796 764 700 667 631 642 536 7 Finland 1,044 898 823 1,111 1.176 947 797 1.050 1.086 1,100 8 France 8,766 9.157 9,124 9,600 9,574 11,401 9.095 10.001 9.731 10.810 9 Germany 1,284 1.306 1,267 1,432 1.769 1,826 2.277 1,736 1.634 1,366 10 Greece 476 817 991 626 792 648 635 634 530 455 11 Italy 9,018 9.119 8,848 7.713 8.391 9,051 7.916 7.339 6,979 7,517 12 Netherlands 1,267 1,356 1.258 2 592 2,427 3,314 2,087 2,107'' 2,375 3,075 13 Norway 690 675 706 711 712 654 741 766 663 678 14 Portugal 1,114 1.243 1.058 699 682 706 677 679 737 666 13 Spain 3,573 2.884 1.908 1,922 1,722 1,459 1,479 1,637 1,766 1,936 16 Sweden 3,358 2,230 2.219 2,375 2,343 1,945 2,280 2.422 2,457 2,404 17 Switzerland 1,863 2.123 3,171 2,832 3.574 3,049 2,622 2,423 2,336 2,847 18 Turkey 812 1,130 1.200 1,612 1,539 1,541 1.469 1,436 1.577 1,561 19 United Kingdom 47,364 56,185 62.566 58,248 59,120 58,380 55,765 56,43 K 53.956 59,767 20 Yugoslavia 1,718 1.886 1,964 1,886 1,813 1,833 1.775 1,769 1,840 1,763 21 Other Western Europe1 477 596 998 799 600 556 536 491 781 670 22 U.S.S.R 192 142 130 296 225 345 396 401 364 380 23 Other Eastern Europe2 1,598 1.389 1,107 1,090 927 944 1.379 971' 1,014 1,070 24 Canada 16.341 16,109 16.482 19,532 20.338 20.957 20,749 19.193' 19,799 20,253 25 Latin America and Caribbean 205,491 207.862 202,674 196.861 196,768 208,902 195.094 196,310r 198,644 208.994 26 Argentina 11.749 11.050 11,462 12,243 12.017 12.079 12.114 12.211 12,162 12,154 27 Bahamas 59,633 58.009 58,258 53,557 54,196 59,877 51,694 53.052r 53,725 62,763 28 Bermuda 566 592 499 452 447 418 415 376 545 740 29 Brazil 24.667 26.315 25.283 24,740 25.882 25,586 25.766 25,778r 25,979 26,221 30 British West Indies 35,527 38.205 38.881 39,981 39,694 46,305 41.128 41,084r 42,523 42,681 31 Chile 6,072 6.839 6,603 6,514 6,526 6,533 6,472 6,565 6,401 6,399 32 Colombia 3,745 3,499 3,249 2.674 2,665 2,819 2,801 2,743 2.692 2,679 33 Cuba 0 0 0 0 1 0 2 1 6 9 34 Ecuador 2,307 2,420 2,390 2,420 2,395 2,430 2,425 2,422 2,338 2,388 35 Guatemala3 129 158 194 122 138 140 133 145 135 120 36 Jamaica3 215 252 224 209 216 198 199 199 192 189 37 Mexico 34,802 34.885 31,799 31,061 30.659 30,490 30.273 29,868r 29,799 30,084 38 Netherlands Antilles 1,154 1.350 1.340 967 931 1,039 960 1,029' 992 1,202 39 Panama 7,848 7,707 6,645 6,094 5,354 5,423 5,270 5.204 5,465 5.849 40 Peru 2,536 2.384 1.947 1.625 1,618 1,637 1,624 1,616 1,583 1,584 41 Uruguay 977 1,088 960 930 943 940 937 932 959 957 42 Venezuela 11,287 11,017 10,871 11.185 11,019 11,052 10.018 11,175 11,278 11,063 43 Other Latin America and Caribbean 2.277 2.091 2.067 2,086 2,067 1,937 1,864 1,910 1,868 1,910 44 Asia 67,837 66,316 66,212 78,631 86,236 96,148 95,988 91,799' 87,426 89.199 China 45 Mainland 292 710 639 758 793 787 983 873 1,373 1,450 46 Taiwan 1,908 1,849 1.535 1,528 1,812 2,675 2,617 2.890 2.696 3,194 47 Hong Kong 8,489 7.293 6,797 8,337 7.575 8,250 8,443 9,225 8.254 7,822 48 India 330 425 450 316 327 321 333 325 486 414 49 Indonesia 805 724 698 694 722 718 699 679 652 621 50 Israel 1,832 2,088 1,991 1.630 1.615 1,645 1,611 1.531 1,528 1,492 51 Japan 30,354 29,066 31,249 45.240 53.351 59,852 58,315 55,623 52,213 54,602 52 Korea 9.943 9,285 9,226 7,023 6.533 7,155 6.783 6,161 5,955 5,331 53 Philippines 2,107 2.555 2,224 2,071 1,972 2,202 2,147 2,120 2,275 2,114 54 Thailand 1,219 1,125 845 611 595 577 521 557'' 490 461 55 Middle East oil-exporting countries4 4,954 5,044 4.298 3,396 3,778 4,122 5,483 4,892 5.150 4,568 56 Other Asia 5.603 6,152 6.260 7.027 7,162 7,845 8,053 6,922 6.357 7,131 57 Africa 6,654 6,615 5,407 4,531 4,737 4,621 4,599 4,673'' 4,834 4,771 58 Egypt 747 728 721 577 560 567 577 593 618 574 59 Morocco 440 583 575 621 621 598 590 585 584 565 60 South Africa 2,634 2,795 1,942 1,549 1,586 1,531 1,516 1,543' 1.531 1,560 61 Zaire 33 18 20 35 27 28 36 42 42 41 62 Oil-exporting countries5 1,073 842 630 545 690 688 725 743 856 795 63 Other 1,727 1.649 1,520 1,203 1,253 1,208 1,156 1,168 1,204 1,236 64 Other countries 2,898 3,447 3,390 3,259 3,187 3,297 3,323 2,878 2.883 2,950 65 Australia 2,256 2,769 2.413 2,143 1,980 1,952 2,081 1,902' 1.991 2,066 66 All other 642 678 978 1,115 1.207 1,345 1.242 976' 892 884 67 Nonmonetary international and regional organizations6 164 800 1.030 372 171 2,983 62 178 544 3.900 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 1987 TTyyppee ooff ccllaaiimm 11998833 11998844 11998855 Oct. Nov. Dec. Jan. Feb/ Mar. Ap T.P 1 Total 444444422222226666666,,,,,,,222222211111115555555 444444433333333333333,,,,,,,000000077777778888888 444444433333330000000,,,,,,,444444488888889999999 444444477777778888888,,,,,,,444444422222229999999 444444444444444444444,,,,,,,888888811111113333333 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 333333399999991111111.......333333311111112222222 444444400000000000000,,,,,,,111111166666662222222 444444400000001111111,,,,,,,666666600000008888888 407.832 418.485 444444444444444444444,,,,,,,444444455555558888888 420,632 417,437 444444411111113333333,,,,,,,333333311111112222222 437,936 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 55555557777777.......555555566666669999999 66666662222222.......222222233333337777777 66666660000000,,,,,,,555555500000007777777 60.745 60,785 66666663333333,,,,,,,555555588888882222222 61,833 61,709 66666662222222,,,,,,,666666633333331111111 65,486 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 111111144444446666666,,,,,,,333333399999993333333 111111155555556666666,,,,,,,222222211111116666666 111111177777774444444,,,,,,,222222266666661111111 182,548 189,732 222222211111112222222,,,,,,,000000022222223333333 192.120 191,000 111111188888889999999,,,,,,,888888855555550000000 207,023 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222223333333,,,,,,,888888833333337777777 111111122222224444444.......999999933333332222222 111111111111116666666,,,,,,,666666655555554444444 117.865 120.485 111111122222222222222.......888888811111119999999 121,005 120,411 111111111111116666666.......555555566666667777777 120,438 66 DDeeppoossiittss 44444447777777,,,,,,,111111122222226666666 44444449999999.......222222222222226666666 44444448888888,,,,,,,333333377777772222222 53.546 53.300 55555557777777,,,,,,,333333344444449999999 54,266 55,494 55555553333333.......666666633333336666666 57,461 77 OOtthheerr 77777776666666,,,,,,,777777711111111111111 77777775555555,,,,,,,777777700000006666666 66666668888888,,,,,,,222222288888882222222 64.319 67,185 66666665555555.......444444477777771111111 66.740 64,917 66666662222222.......999999933333331111111 62.978 88 AAllll ootthheerr ffoorreeiiggnneerrss 66666663333333,,,,,,,555555511111114444444 55555556666666,,,,,,,777777777777777777777 55555550000000.......111111188888885555555 46,675 47,483 44444446666666,,,,,,,000000033333334444444 45.674 44,317 44444444444444.......222222266666664444444 44,989 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 .... 33333334444444,,,,,,,999999900000003333333 33333332222222,,,,,,,999999911111116666666 22222228888888,,,,,,,888888888888881111111 33333333333333,,,,,,,999999977777771111111 33333331111111,,,,,,,555555500000001111111 2222222,,,,,,,999999966666669999999 3333333,,,,,,,333333388888880000000 3333333,,,,,,,333333333333335555555 4444444,,,,,,,444444411111113333333 3333333,,,,,,,333333322222220000000 11 Negotiable and readily transferable 22222226666666.......000000066666664444444 22222223333333.......888888800000005555555 11111119999999,,,,,,,333333333333332222222 22222224444444,,,,,,,000000044444444444444 22222220000000,,,,,,,555555555555551111111 12 Outstanding collections and other 5555555,,,,,,,888888877777770000000 5555555,,,,,,,777777733333332222222 6666666,,,,,,,222222211111114444444 5555555.......555555511111114444444 7777777,,,,,,,666666633333330000000 13 MEMO: Customer liability on 33333337777777,,,,,,,777777711111115555555 33333337777777,,,,,,,111111100000003333333 22222228888888,,,,,,,444444488888887777777 22222225555555.......666666600000006666666 22222225555555.......333333311111119999999 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 .... 46,337 40,714 37,780 42,771 44,772 43,597 46,611' 48.002 42.595 n.a. 1. U.S. hanks: 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 1986 1987 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998833 11998844 11998855 June Sept. Dec. Mar.P 1 Total 243,715 243,952 227,903 222,597 224,693 230,897 222,841 Bv borrower 2 Maturity of 1 year or less1 176,158 167.858 160.824 152,589 155,116 159.414 151.002 3 Foreign public borrowers 24,039 23.912 26.302 23,171 22,527 24.920 22.339 4 All other foreigners 152.120 143.947 134.522 129,418 132,589 134.494 128.664 5 Maturity of over 1 year1 67,557 76.094 67.078 70,008 69.577 71.483 71,839 6 Foreign public borrowers 32,521 38.695 34.512 37,365 38.189 39.816 40,998 7 All other foreigners 35.036 37.399 32.567 32,643 31,388 31.667 30,840 Bv area Maturity of 1 year or less1 8 Europe 56.117 58.498 56.585 57,948 59,383 61.057 57,455 9 Canada 6,211 6.028 6.401 6,074 6,160 5,794 5.497 10 Latin America and Caribbean 73,660 62.791 63.328 57,397 58,191 55.879 53.635 11 Asia 34.403 33,504 27,966 25.802 26,474 29,372 29.25] 1? Africa 4.199 4,442 3,753 3,297 3,071 2,854 3,065 13 All other2 1.569 2,593 2,791 2.073 1,838 4.458 2,099 Maturity of over 1 year1 14 Europe 13,576 9,605 7,634 7,934 7,297 6,796 6,894 15 Canada 1.857 1,882 1,805 2.256 1.930 1,930 1.936 16 Latin America and Caribbean 43,888 56,144 50,674 53.572 54.093 56.336 56.629 17 Asia 4.850 5.323 4.502 4,034 3.976 4.091 4.183 18 Africa 2,286 2.033 1.538 1,497 1.479 1,534 1,624 19 All other2 1.101 1.107 926 714 802 795 573 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 • August 1987 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks12 Billions of dollars, end of period 1985 1986 1987 AArreeaa oorr ccoouunnttrryy 11998822 11998833 11998844 June Sept. Dec. Mar. June Sept. Dec.' Mar.'' 1 Total 436.1 433.9 405.7 396.8 394.9 391.9 394.4 391.3' 391.4' 391.7 395.8 2 G-10 countries and Switzerland 179.6 167.8 148.1 146.7 152.0 148.5 156.4' 159.9 158.9 158.1 163.2 3 Belgium-Luxembourg 13.1 12.4 8.7 8.9 9.5 9.3 8.3 9.0 8.5 8.4 9.1 4 France 17.1 16.2 14.1 13.5 14.8 12.3 13.8 15.1 14.6 13.8 13.3 5 Germany 12.7 11.3 9.0 9.6 9.8 10.5 11.3' 11.5 12.5 11.7 12.1 6 Italy 10.3 11.4 10.1 8.6 8.4 9.8 8.5 9.3 8.1 9.0 8.6 7 Netherlands 3.6 3.5 3.9 3.7 3.4 3.7 3.5 3.4 3.9 4.6 4.4 8 Sweden 5.0 5.1 3.2 2.9 3.1 2.8 2.9 2.9 2.7 2.4 3.0 9 Switzerland 5.0 4.3 3.9 4.0 4.1 4.4 5.4 5.6 4.8 5.5 5.8 10 United Kingdom 72.1 65.3 60.3 65.7 67.1 64.6 68.5 68.9 70.0 71.9 74.5 11 Canada 10.4 8.3 7.9 8.1 7.6 7.0 6.2 6.8 6.1 5.4 5.2 12 Japan 30.2 29.9 27.1 21.7 24.3 24.2 28.1 27.4 27.7 25.3 27.1 13 Other developed countries 33.5 36.0 33.6 32.3 32.0 30.4 31.6 30.6 29.4 26.1 26.2 14 Austria 1.9 1.9 1.6 1.6 1.7 1.6 1.6 1.7 1.7 1.7 1.9 15 Denmark 2.4 3.4 ~> i 1.9 2.1 2.4 2.5 2.4 2.3 1.7 1.8 16 Finland ~> •> 2.4 1.9 1.8 1.8 1.6 1.9 1.6 1.7 1.4 1.5 17 Greece 3.0 2.8 2.9 2.9 2.8 2.6 2.5 2.6 2.3 2.3 2.1 18 Norway 3.3 3.3 3.0 2.9 3.4 2.9 2.7 3.0 2.7 2.4 2.1 19 Portugal 1.5 1.5 1.4 1.3 1.4 1.3 1.1 1.0 1.0 .8 .9 20 Spain 7.5 7.1 6.5 5.9 6.1 5.8 6.4 6.4 6.7 5.8 6.2 21 Turkey 1.4 1.7 1.9 2.0 2.1 1.9 2.3 2.5 2.1 2.0 1.9 22 Other Western Europe 2.3 1.8 1.7 1.8 1.7 2.0 2.4 2.1 1.6 1.5 1.6 23 South Africa 3.7 4.7 4.5 3.9 3.3 3.2 3.2 3.1 3.1 3.1 3.1 24 Australia 4.3 5.4 6.0 6.2 5.6 5.0 4.9 4.2 4.1 3.5 3.2 25 OPEC countries3 26.9 28.4 24.9 22.8 22.7 21.6 20.7 20.6 20.0 19.5 20.2 26 Ecuador 2.2 2.2 "> •> -> i •> i 2.1 2.2 2.1 2.1 2.2 2.1 27 Venezuela 10.5 9.9 9.3 9.3 9.0 8.9 8.7 8.8 8.7 8.6 8.7 28 Indonesia 2.9 3.4 3.3 3.1 3.1 3.0 3.3 3.0 2.8 2.5 ~> ~> 29 Middle East countries 8.5 9.8 7.9 6.1 6.2 5.5 4.8 5.0 4.6 4.5 5.5 30 African countries 2.8 3.0 2.3 2.2 2.3 2.0 1.8 1.7 1.7 1.7 1.6 31 Non-OPEC developing countries 106.5 110.8 111.8 110.0 107.8 105.1 103.6' 101.5 99.7 99.3 99.9 Latin America 32 Argentina 8.9 9.5 8.7 8.6 8.9 8.9 8.9 9.2 9.3 9.5 9.5 33 Brazil 22.9 23.1 26.3 26.6 25.5 25.6 25.6 25.3 25.2 25 2 25.6 34 Chile 6.3 6.4 7.0 6.9 6.6 7.0 7.0 7.1 7.1 7.1 7.2 35 Colombia 3.1 3.2 2.7 2.6 2.7 2.3 2.2 2.0 2.1 2.0 36 Mexico 24.2 25.8 25.7 25.3 24.4 24.2 24.0 23.8 23.8 23.8 23.8 37 Peru 2.6 2.4 2.1 1.9 1.8 1.7 1.6 1.5 1.4 1.4 38 Other Latin America 4.0 4.2 3.9 3.7 3.5 3.4 3.3 3.3 3.3 3.1 3.0 Asia China 39 Mainland .2 .3 .7 .3 1.1 s .6 .6 .6 .4 .9 40 Taiwan 5.3 5.2 5.1 5.5 5.1 4.5 4.3 3.7 4.3 4.9 5.4 41 India .5 .9 .9 .9 1.1 1.2 1.2 1.3 1.3 1.2 1.8 42 Israel 2.3 1.9 1.8 2.3 1.5 1.6 1.3 1.6 1.4 1.6 1.4 43 Korea (South) 10.7 11.2 10.6 10.0 10.4 9.4 9.5 8.7 7.3 6.7 6.2 44 Malaysia 2.1 2.8 2.7 2.8 2.7 2.4 2 2 2.0 2.1 2.1 1.9 45 Philippines 6.3 6.1 6.0 6.0 6.0 5.7 5.6 5.7 5.4 5.4 5.4 46 Thailand 1.6 2.2 1.8 1.6 1.7'' 1.4 1.3 1.1 1.0 .9 .9 47 Other Asia 1.1 1.0 1.1 .9 .9 1.0 .9 .8 .7 .7 .6 Africa 48 Egypt 1.2 1.5 1.2 1.0 1.0 1.0 .9 .9 .7 .7 .6 49 Morocco .7 .8 .8 .8 .9 .9 .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 2.1 2.0 2.0 1.9 1.9 1.7 1.6 1.6 1.4 52 Eastern Europe 6.2 5.3 4.4 4.3 4.6 4.2 4.0 4.0 3.4 3.2 3.1 53 l.S.S.K .3 2 .1 .3 i .1 .3 .3 .1 .1 .1 54 Yugoslavia 2.2 2.4 2.3 2 2 2.4 2.0 2.0 1.9 1.7 1.6 55 Other 3.7 2.8 2.0 1.8 1.9 1.8 1.7 1.7 1.4 1.4 1.3 56 Offshore banking centers 66.0 68.9 65.6 63.9 58.8 65.4 61.6 57.5'' 62.6 65.5 65.5 57 Bahamas 19.0 21.7 21.5 21.1 16.6 21.4 21.5 17.3 20.0 22.8 23.8 58 Bermuda .9 .9 .9 .9 .8 .7 .7 5'' .4 .7 .8 59 Cayman Islands and other British West Indies 12.8 12.2 11.8 12.1 12.3 13.4 11.3 13.0' 13.2 14.5 13.3 60 Netherlands Antilles 3.3 4.2 3.4 3.2 2.3 2.3 2.3 2.3 1.9 1.8 1.7 61 Panama 7.5 5.8 6.7 5.4 6.1 6.0 5.9 5.5 6.8 5.1 5.5 62 Lebanon .1 .1 .1 .1 .0 .1 .1 .1 .1 .1 .1 63 Hong Kong 13.3 13.8 11.4 11.4 11.4 11.5 11.4 9.4 10.4 11.2 11.5 64 Singapore 9.1 10.3 9.8 9.7 9.4 9.9 8.4 9.3 9.7 9.3 8.8 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 17.5 16.8 17.3 16.9 17.3 16.9 16.7 17.2 17.5 20.1 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 /w/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 Kuwait. Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirales) as well another foreign branch of the same banking institution. The data in this table as Bahrain and Oman (nor formally members of OPEC). combine foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the 4. Excludes Liberia. claims of U.S. offices in table 3.18 (excluding those held by agencies and branches 5. Includes Canal Zone beginning December 1979. of 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 kfor "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 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998822 11998833 11998844 Dec. Mar. June Sept. Dec. 1 Total 27,512 25,346 29,357 27,741 26,301 24,698 24,460 25,321 i Payable in dollars 24,280 22.233 26.389 24,352 22,544 21,040 20,633 21,553 3 Payable in foreign currencies 3,232 3.113 2,968 3,389 3,757 3,657 3,827 3.768 By type 4 Financial liabilities 11,066 10,572 14,509 13.516 12.971 11,578 11,700 12,070 Payable in dollars 8,858 8,700 12,553 11,313 10,705 9,515 9,418 9,705 6 Payable in foreign currencies 2,208 1.872 1,955 2,203 2,267 2,063 2.281 2,365 7 Commercial liabilities 16,446 14,774 14,849 14,225 13,329 13,120 12,760 13,251 8 Trade payables 9.438 7,765 7,005 6,685 5,618 5,472 5,592 6,290 9 Advance receipts and other liabilities 7,008 7,009 7,843 7,540 7.711 7.648 7,168 6,961 10 Payable in dollars 15.423 13,533 13,836 13,039 11,839 11.525 11,214 11,848 11 Payable in foreign currencies 1,023 1,241 1,013 1,186 1,490 1,595 1.546 1,404 By area or country Financial liabilities 1? Europe 6,501 5,742 6.728 7,616 7,460 7,022 7,254 7,851 13 Belgium-Luxembourg 505 302 471 329 338 288 322 245 14 France 783 843 995 857 851 686 5OT 729 15 Germany 467 502 489 434 388 280 319 372 16 Netherlands 711 621 590 745 630 635 708 701 17 Switzerland 792 486 569 676 692 561 692 714 18 United Kingdom 3,102 2,839 3,297 4,254 4,217 4,274 4,272 4,790 19 Canada 746 764 863 839 832 367 362 403 20 Latin America and Caribbean 2,751 2,596 5,086 3,184 2,810 2,443 2,269 1.969 71 Bahamas 904 751 1,926 1,123 958 874 863 621 ?? Bermuda 14 13 13 4 4 14 4 4 73 Brazil 28 32 35 29 26 27 28 32 74 British West Indies 1,027 1,041 2,103 1,843 1,639 1,386 1,256 1,160 75 Mexico 121 213 367 15 20 30 18 22 26 Venezuela 114 124 137 3 3 3 5 3 27 Asia 1,039 1,424 1,777 1,815 1.824 1,685 1,790 1,767 28 Japan 715 991 1,209 1,198 1,217 1,214 1,354 1,352 29 Middle East oil-exporting countries2 169 170 155 82 78 43 3 8 30 Africa 17 19 14 12 12 12 4 1 31 Oil-exporting countries3 0 0 0 0 0 0 2 1 32 All other4 12 27 41 50 32 49 21 79 Commercial liabilities 33 Europe 3,831 3,245 4,001 4,074 3,925 3,826 4,337 4,421 34 Belgium-Luxembourg 52 62 48 62 66 58 75 99 35 France 598 437 438 453 382 358 369 338 36 Germany 468 427 622 607 546 561 628 693 37 Netherlands 346 268 245 364 545 586 613 493 38 Switzerland 367 241 257 379 261 284 360 384 39 United Kingdom 1.027 732 1,095 976 957 864 1.086 1,279 40 Canada 1,495 1,841 1,975 1,449 1,445 1,357 1,240 1,386 41 Latin America and Caribbean 1,570 1,473 1,871 1,088 1,107 1,242 843 850 42 Bahamas 16 1 • 7 12 26 10 37 19 43 Bermuda 117 67 114 77 218 294 172 132 44 Brazil 60 44 124 58 64 45 43 59 45 British West Indies 32 6 32 44 7 35 45 48 46 Mexico 436 585 586 430 256 235 196 210 47 Venezuela 642 432 636 212 364 488 207 215 48 Asia 8,144 6.741 5,285 6,046 5,384 5.075 4,781 5,011 49 Japan 1,226 1,247 1.256 1,799 2,039 2.100 2,114 2,046 50 Middle East oil-exporting countries2-5 5,503 4,178 2.372 2,829 2,171 1,787 1.490 1,666 51 Africa 753 553 588 587 486 567 578 619 52 Oil-exporting countries3 277 167 233 238 148 215 176 197 53 All other4 651 921 1.128 982 983 1,053 980 963 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 • August 1987 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1985 1986 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998822 11998833 11998844 Dec. Mar. June Sept. Dec. 1 Total 28,725 34,911 29,901 28,437 31,383 33,282 32,599 33,101 Payable in dollars 26.085 31.815 27.304 26.135 29,196 31,100 30,123 30,498 3 Payable in foreign currencies 2.640 3.096 2.597 2,302 2,187 2.182 2,475 2,603 By type 4 Financial claims 17.684 23,780 19.254 18,451 21,996 24,139 23,503 23,550 Deposits 13.058 18.496 14,621 15.204 18,612 20,833 18,566 18,796 6 Payable in dollars 12.628 17.993 14.202 14.589 18,155 20,278 18.078 18.247 / Payable in foreign currencies 430 503 420 615 457 555 488 549 8 Other financial claims 4.626 5.284 4,633 3.248 3,384 3,306 4,937 4,754 9 Payable in dollars 2.979 3.328 3,190 2,213 2,291 2,285 3,717 3,456 10 Payable in foreign currencies 1.647 1.956 1,442 1,035 1,093 1,021 1,220 1,298 11 Commercial claims 11.041 11.131 10,646 9,986 9,387 9,142 9,096 9,551 12 Trade receivables 9.994 9,721 9.177 8.696 8,087 7.802 7,924 8,405 13 Advance payments and other claims 1.047 1,410 1.470 1,290 1,300 1,341 1,172 1.146 14 Payable in dollars 10.478 10,494 9.912 9.333 8,750 8.537 8,329 8,794 15 Payable in foreign currencies 563 637 735 652 637 606 767 756 By area or country Financial claims 16 Europe 4.873 6,488 5.762 6.530 7,183 9,626 9,548 8,678 17 Belgium-Luxembourg 15 37 15 10 10 11 67 41 18 France 134 150 126 184 217 257 418 131 19 Germany 178 163 224 223 174 148 129 86 20 Netherlands 97 71 66 61 61 17 44 87 21 Switzerland 107 38 66 74 166 177 138 134 22 United Kingdom 4.064 5.817 4,864 5,725 6,310 8,799 8.525 7,948 23 Canada 4.377 5.989 3,988 3,260 4,020 4,429 3,817 4,119 24 Latin America and Caribbean 7.546 10,234 8,216 7,841 10,073 9,253 9,300 9,306 25 Bahamas 3.279 4.771 3,306 2,698 3,516 3,310 2,912 2,534 26 Bermuda 32 102 6 6 2 17 19 13 27 Brazil 62 53 100 78 77 75 101 67 28 British West Indies 3.255 4,206 4,043 4.571 6,034 5,402 5,871 6,194 29 Mexico 274 293 215 180 178 176 173 173 30 Venezuela 139 134 125 48 43 42 40 24 31 Asia 698 764 961 696 619 723 673 1,335 32 Japan 153 297 353 475 350 499 387 1,003 33 Middle East oil-exporting countries- 15 4 13 4 2 2 2 11 34 Africa 158 147 210 103 87 89 84 85 35 Oil-exporting countries3 48 55 85 29 27 25 18 28 36 All other4 31 159 117 21 14 20 81 27 Commercial claims 37 Europe 3.826 3,670 3,801 3.533 3,390 3,304 3,344 3,518 38 Belgium-Luxembourg 151 135 165 175 148 131 123 127 39 France 474 459 440 426 384 391 412 387 40 Germany 357 349 374 346 399 418 397 428 41 Netherlands 350 334 335 284 221 230 183 199 42 Switzerland 360 317 271 284 247 228 232 213 43 United Kingdom 811 809 1.063 898 795 674 830 820 44 Canada 633 829 1.021 1,023 1.061 965 929 909 45 Latin America and Caribbean 2.526 2,695 2,052 1,753 1,592 1,611 1,665 1,825 46 Bahamas 21 8 8 13 27 24 29 29 47 Bermuda 261 190 115 93 82 148 132 157 48 Brazil 258 493 214 206 217 193 206 229 49 British West Indies 12 7 7 6 7 29 23 55 50 Mexico 775 884 583 510 388 323 299 385 51 Venezuela 351 272 206 157 172 181 190 216 52 Asia 3,050 3,063 3.073 2,982 2,609 2.574 2,471 2,619 53 Japan 1,047 1,114 1.191 1.016 801 845 788 840 54 Middle East oil-exporting countries2 751 737 668 638 630 622 597 506 55 Africa 588 588 470 437 491 450 456 464 56 Oil-exporting countries3 140 139 134 130 167 170 168 134 57 All other4 417 286 229 257 244 237 231 215 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 1987 1986 1987 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy Jan.-Apr. Oct. Nov. Dec. Jan. Feb.' Mar. Apr.P U.S. corporate securities STOCKS 1 Foreign purchases 81,995 148,134 82,075 10,979 12.033 14.096 17,617 20,704 23,064 20,690 2 Foreign sales 77,054 129,436 68.944 12,300 12.086 12,320 15.956 17,599 17,999 17,390 3 Net purchases, or sales (-) 4,941 18,698 13,130 -1,322 -52 1,776 1,661 3,105 5,065 3,300 4 Foreign countries 4,857 18,905 13,210 -1,179 -19 1,696 1,741 3,204 5,028 3,238 Europe 2,057 9,559 5,717 -1,124 -485 557 1,061 1,786 1,843 1,028 France -438 459 1,574 -92 -69 113 140 446 656 332 7 Germany 730 341 -4 -104 -3 24 62 16 19 -101 8 Netherlands -123 936 337 -19 -50 14 53 91 69 124 9 Switzerland -75 1,560 687 -405 -236 47 101 100 180 306 10 United Kingdom 1,665 4,826 2,607 -481 -114 363 647 996 783 181 11 Canada 356 807 566 -115 41 102 100 -118 343 241 1? Latin America and Caribbean 1,718 3,029 1,047 154 367 220 308 331 372 36 13 Middle East1 238 975 -249 -51 -92 267 136 -175 -230 20 14 Other Asia 296 3,865 5,668 16 80 450 88 1,153 2,638 1,790 15 Africa 24 297 74 39 23 17 -1 15 1 59 16 Other countries 168 373 387 -97 48 84 49 212 61 64 17 Nonmonetary international and regional organizations 84 -208 -80 -143 -34 80 --8800 -100 37 62 BONDS2 18 Foreign purchases 86,587 122,743 39.286 9,752 9,277 11,879 9,308 8,021 12,121 9,836 19 Foreign sales 42,455 71,840 27.365 5,539 6,105 7,733 7,178 5,457 8,274 6,456 20 Net purchases, or sales (—) 44,132 50,903 11,921 4,213 3,172 4,147 2,130 2,565 3,847 3,380 21 Foreign countries 44,227 50,056 11,606 4,455 2,853 4,251 2,218 2,179 4,005 3,204 77 Europe 40,047 39,307 9,312 3.475 2,100 3,074 1,375 1,402 3,605 2,930 73 France 210 388 83 0 328 32 6 17 81 -22 24 Germany 2,001 -251 10 82 -108 -19 -213 145 198 -120 75 Netherlands 222 387 79 -55 113 52 -7 -29 69 47 76 Switzerland 3,987 4,529 776 265 204 -117 66 78 558 74 77 United Kingdom 32,762 33,899 8.361 3,177 1,416 2,770 1,392 1,178 2,936 2,855 78 Canada 190 548 612 88 154 153 -103 364 190 161 79 Latin America and Caribbean 498 1,468 395 101 66 102 103 98 72 123 30 Middle East1 -2,648 -2,961 -146 -33 -355 -258 -57 -139 -12 62 31 Other Asia 6.091 11,539 1.482 817 902 1,174 917 469 169 -73 37 Africa 11 16 6 -3 3 3 0 1 3 1 33 Other countries 38 139 -55 II -15 3 -16 -16 -22 0 34 Nonmonetary international and regional organizations -95 847 315 -243 319 -104 -88 386 -159 176 Foreign securities 15 Stocks, net purchases, or sales (-) -3,941 -1,452 -2,561 1,311 391 65 -167 -561 -714 -1119 36 Foreign purchases 20,861 50,292 26,304 6,426 4,190 4,709 5,001 7,175 7,009 7,119 37 Foreign sales 24,803 51,744 28,865 5.115 3,799 4,644 5,169 7,736 7,722 8,238 38 Bonds, net purchases, or sales (-) -3,999 -3,098 -916 2,125 -683 -441 320 -71 -489 -675 39 Foreign purchases 81,216 166.700 62,910 16,274 12,663 16,316 11,427 15,821 16,651 19,012 40 Foreign sales 85,214 169,798 63,826 14,149 13.346 16,756 11,107 15,891 17,140 19,687 41 Net purchases, or sales (-), of stocks and bonds .... -7,940 -4,550 -3,477 3,436 -292 -376 152 -632 -1,203 -1,794 42 Foreign countries -9,003 -5,665 -4,138 3,117 -294 -825 10 -712 -1,508 -1,929 43 Europe -9,887 -17,675 -4.802 -657 -1,010 -1,369 -188 -1,220 -658 -2,737 44 Canada -1.686 -875 -1,167 94 -106 -264 -396 -566 -202 -3 45 Latin America and Caribbean 1,797 3,469 323 502 16 203 389 104 -428 259 46 659 11,342 2,034 3,237 820 1,511 168 925 306 636 47 Africa 75 52 11 -1 4 3 4 0 -1 8 48 Other countries 38 -1,977 -538 -59 -19 -909 33 45 -524 -91 49 Nonmonetary international and regional organizations 1,063 1,115 662 320 2 449 143 80 305 135 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 • August 1987 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1987 1986 1987 11998855 11998866 Country or area A Ja p n r. . - Oct. Nov. Dec. Jan. Feb. Mar. Apr.'' Transactions, net purchases or sales (-) during period1 1 Estimated total2 29,208 24,173 4,585 3,032 -2,259 991 -436r 932' 7,124 -3,036 2 Foreign countries2 28,768 25,277 5,186 2,717 -301 -488 580 1,818 4,239 -1,451 3 Europe2 4,303 16,851 9,481 3,046 -727 1,001 1,376 1,709 5,865 532 4 Belgium-Luxembourg 476 349 201 4 -53 75 59 211 -35 -35 5 Germany2 1,917 7,531 5,026 2,497 700 -487 581 1,118 2,141 1,187 6 Netherlands 269 1,283 -558 112 38 -58 -366 41 -212 -22 7 Sweden 976 132 529 -6 -70 -236 -229 440 334 -16 8 Switzerland2 773 310 2.631 449 -498 -428 -135 473 1,641 652 9 United Kingdom -1,810 4,648 389 141 -335 1,036 1,227 -57 360 -1,140 10 Other Western Europe 1,701 2,598 1,301 -149 -510 1,099 236 -518 1,635 -53 11 Eastern Europe 0 0 -38 0 0 0 3 0 0 -41 12 Canada -188 881 1,861 -230 19 297 846 -403 702 716 1.3 Latin America and Caribbean 4,315 878 -1,392 -219 75 97 -1,006 -290 -62 -34 14 Venezuela 248 -95 101 69 -139 29 -33 18 102 14 15 Other Latin America and Caribbean 2,336 1,131 -408 -314 6 96 -445 374 -156 -180 16 Netherlands Antilles 1,731 -159 -1,085 26 208 -28 -528 -682 -8 133 17 19,919 5,466 -5,067 -30 -152 -2,067 -922 1,231 -2,309 -3,067 18 Japan 17,909 4,048 -3,426 -450 188 -2,086 -76 1,767' -2,388 -2,729 19 Africa 112 -54 -30 -13 2 -14 6 -34 12 -15 20 All other 308 1,255 333 163 482 198 280 -396 32 416 21 Nonmonetary international and regional organizations 442 -1,105 -599 315 -1,958 1,478 -1,016' -884' 2,885 -1,584 22 International -436 -1,430 -468 365 -2,010 1,412 -1,070' -886' 2,835 -1,347 23 Latin American regional 18 157 11 -5 0 0 0 0 11 0 MEMO 24 Foreign countries2 28,768 25,277 5,186 2,717 -301 -488 580 1,818 4,239 -1,451 25 Official institutions 8,135 14,366 10,534 3,589 133 295 1,498 834' 5,837 2,366 26 Other foreign2 20,631 10,913 -5,349 -872 -434 -782 -918 983' -1,597 -3,817 Oil-exporting countries 27 Middle East3 -1,547 -1473 -1,516 -377 -1,014 -21 -721 -962 226 -60 28 Africa4 7 5 20 -1 1 0 1 1 17 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities with an original maturity of more than 1 year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria, notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes publicly issued to private foreign residents denominated in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on May 31, 1987 Rate on May 31, 1987 Rate on May 31, 1987 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 3.5 Jan. 1987 France1 7.75 Mar. 1987 Norway 8.0 June 1983 Belgium . 7.75 May 1987 Germany, Fed. Rep. of 3.5 Mar. 1986 Switzerland 3.5 Jan. 1987 Brazil... 49.0 Mar. 1981 Italy 11.5 Mar. 1987 United Kingdom2. Canada.. 8.54 May 1987 Japan 2.5 Feb. 1987 Venezuela 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 1987 CCoouunnttrryy,, oorr ttyyppee 11998844 11998855 11998866 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Eurodollars 10.75 8.27 6.70 5.96 6.23 6.10 6.32 6.37 6.73 7.25 2 United Kingdom 9.91 12.16 10.87 11.12 11.30 10.98 10.79 9.90 9.72 8.79 3 Canada 11.29 9.64 9.18 8.39 8.34 7.95 7.44 7.14 7.62 8.22 4 Germany 5.96 5.40 4.58 4.67 4.80 4.45 3.94 3.97 3.85 3.73 5 Switzerland 4.35 4.92 4.19 3.88 4.08 3.63 3.58 3.93 3.65 3.63 6 Netherlands 6.08 6.29 5.56 5.48 6.03 5.58 5.31 5.38 5.31 5.11 7 France 11.66 9.91 7.68 7.51 7.92 8.49 8.36 7.85 7.87 8.09 8 Italy 17.08 14.86 12.60 11.05 11.40 11.39 11.13 10.65 10.03 10.15 9 Belgium 11.41 9.60 8.04 7.38 7.39 7.88 7.75 7.49 7.21 7.13 10 Japan 6.32 6.47 4.96 4.39 4.40 4.23 3.98 4.00 3.92 3.77 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 • August 1987 3.28 FOREIGN EXCHANGE RATES Currency units per dollar 1986 1987 CCoouunnttrryy//ccuurrrreennccyy 11998844 11998855 11998866 Dec. Jan. Feb. Mar. Apr. May 1 Australia/dollar1 87.937 70.026 67.093 65.95 66.09 66.77 68.17 71.19 71.42 2 Austria/schilling 20.005 20.676 15.260 13.996 13.087 12.833 12.905 12.739 12.574 3 Belgium/franc 57.749 59.336 44.662 41.381 38.616 37.789 38.029 35.562 37.091 4 Brazil/cruzeiro 1841.50 6205.10 13.051 14.54 15.58 18.08 20.56 22.59 n.a. 5 Canada/dollar 1.2953 1.3658 1.3896 1.3801 1.3605 1.3340 1.3194 1.3183 1.3411 6 China. F.R./yuan 2.3308 2.9434 3.4615 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 7 Denmark/krone 10.354 10.598 8.0954 7.5235 7.0591 6.8939 6.9166 6.8388 6.7333 8 Finland/markka 6.0007 6.1971 5.0721 4.8980 4.6419 4.5556 4.5102 4.4227 4.3604 9 France/franc 8.7355 8.9799 6.9256 6.5296 6.2007 6.0760 6.1091 6.0332 5.9748 10 Germany/deutsche mark 2.8454 2.9419 2.1704 1.9880 1.8596 1.8239 1.8355 1.8125 1.7881 11 Greece/drachma 112.73 138.40 139.93 140.13 134.80 133.88 134.68 133.502 133.35 12 Hong Kong/dollar 7.8188 7.7911 7.8037 7.7931 7.7698 7.7952 7.8017 7.8023 7.8049 13 India/rupee 11.348 12.332 12.597 13.149 13.029 13.062 12.924 12.8224 12.666 14 Ireland/pound1 108.64 106.62 134.14 136.78 143.90 145.93 145.54 147.49 149.59 15 Italy/lira 1756.10 1908.90 1491.16 1379.44 1317.17 1297.74 1305.90 1292.96 1290.80 16 Japan/yen 237.45 238.47 168.35 162.05 154.83 153.41 151.43 143.00 140.48 17 Malaysia/ringgit 2.3448 2.4806 2.5830 2.5966 2.5701 2.5418 2.5230 2.4861 2.4759 18 Netherlands/guilder 3.2083 3.3184 2.4484 2.2470 2.0978 2.0592 2.0731 2.0447 2.0154 19 New Zealand/dollar' 57.837 49.752 52.456 51.339 53.605 54.815 56.333 57.751 57.639 20 Norway/krone 8.1596 8.5933 7.3984 7.5294 7.1731 7.0067 6.9335 6.7781 6.6632 31 Portugal/escudo 147.70 172.07 149.80 148.61 142.90 141.62 141.48 140.339 139.18 22 Singapore/dollar 2.1325 2.2008 2.1782 2.1900 2.1510 2.1410 2.1418 2.1350 2.1202 23 South Africa/rand1 69.534 45.57 43.952 44.94 47.70 47.97 48.21 49.55 49.87 24 South Korea/won 807.91 861.89 884.61 868.43 862.86 857.38 856.11 845. (X) 832.53 25 Spain/peseta 160.78 169.98 140.04 134.49 129.54 128.62 128.86 126.975 125.28 26 Sri Lanka/rupee 25.428 27.187 27.933 28.532 28.578 28.662 28.823 28.902 28.988 27 Sweden/krona 8.2706 8.6031 7.1272 6.9081 6.6188 6.5016 6.4202 6.3210 6.2606 28 Switzerland/franc 2.35(H) 2.4551 1.7979 1.6647 1.5616 1.5403 1.5391 1.4968 1.4705 29 Taiwan/dollar 39.633 39.889 37.837 36.001 35.304 35.056 34.681 33.863 32.354 30 Thailand/baht 23.582 27.193 26.314 26.239 26.037 25.933 25.881 25.695 25.629 31 United Kingdom/point1 133.66 129.74 146.77 143.93 150.54 152.80 159.23 162.99 166.66 MEMO 32 United States/dollar 138.19 143.01 112.22 106.54 101.13 99.46 98.99 97.09 96.05 1. Value in U.S. cents. 3. Currency reform. 2. Index of weighted-average exchange value of U.S. dollar against the NOTE. Averages of certified noon buying rates in New York for cable transfers. currencies of 10 industrial countries. The weight for each of the 10 countries is the Data in this table also appear in the Board's G.5 (405) release. For address, see 1972-76 average world trade of that country divided by the average world trade of inside front cover. all 10 countries combined. Series revised as of August 1978 (see FEDERAL RESERVE BULLETIN, vol. 64. August 1978, p. 7(H)). 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 June 1987 A89 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Assets and liabilities of commercial banks, March 31, 1986 June 1987 A70 Assets and liabilities of commercial banks, June 30, 1986 June 1987 A76 Assets and liabilities of commercial banks, September 30, 1986 July 1987 A70 Assets and liabilities of commercial banks, December 31, 1986 July 1987 A76 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 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1986 May 1987 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1987 August 1987 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 Terms of lending at commercial banks, February 1987 May 1987 A70 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1987 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1987' Millions of dollars All states2 New York California Illinois IItteemm in T c I l B o u t F d a s i l n g o IB nl F y s 3 in T c I l B o u t F d a s i l n g o IB nl F y s 3 in T c I l B o u t F d a s i l n g o IB nl F y s 3 in T c I l B o u t F d a s i l n g o IB nl F y s 3 1 Total assets4 395,893 195,277 295,029 154,394 60,964 27,070 22,008 8,430 2 Claims on nonrelated parties 367,441 167,050 276,420 131,716 54,471 24,216 22,008 8,249 3 Cash and balances due from depository institutions 91,661 74,891 76,589 62,210 8,791 8,118 55,,002255 33,,991199 4 Cash items in process of collection and unposted debits 406 0 380 0 5 0 s 0 5 Currency and coin (U.S. and foreign) 28 n.a. 21 n.a. 2 n.a. 2 n.a. 6 Balances with depository institutions in United States 50,516 37,227 41,447 30.229 5,603 5,003 22,,776633 11,,774466 7 U.S. branches and agencies of other foreign banks (including their IBFs) 43,784 35,126 35,596 28,267 5,316 4,933 22,,338855 11,,668899 8 Other depository institutions in United States (including their IBFs) 6,732 2,101 5,851 1,961 288 70 378 57 y Balances with banks in foreign countries and with foreign central banks 38,597 37,664 32,788 31,981 3,138 3,115 2,195 2,173 10 Foreign branches of U.S. banks 2,517 2,437 2,392 2,325 42 36 67 65 11 Other banks in foreign countries and foreign central banks 36,079 35,228 30,396 29,657 3,096 3,079 2,129 2,108 12 Balances with Federal Reserve Banks 2,114 n.a. 1,952 n.a. 43 n.a. 59 n.a. 13 Total securities and loans 226,270 86,624 159,498 65,359 38,333 15,189 15,906 3,980 14 Total securities, book value 30,428 8,193 24,617 6,112 3,941 1,777 874 209 15 U.S. Treasury 7,519 n.a. 7,155 n.a. 165 n.a. 103 n.a. 16 Obligations of U.S. government agencies and corporations 2,385 n.a. 2,259 n.a. 120 n.a. 0 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 20,524 8,193 15,204 6,112 3,657 1,777 771 209 18 Federal funds sold and securities purchased under agreements to resell 17,137 2,107 15,707 1,644 800 234 329 136 19 U.S branches and agencies of other foreign banks.... 11,425 1,160 10,243 780 702 229 285 116 20 Commercial banks in United States 3,323 47 3,212 47 45 0 19 0 21 Other 2,389 900 2,253 817 53 5 25 20 22 Total loans, gross 196,062 78,505 135,034 59,296 34,448 13,436 15,037 3,771 23 Less: Unearned income on loans 220 74 153 49 56 25 5 0 24 Equals: Loans, net 195.842 78,431 134,881 59,247 34,392 13,411 15,032 3,771 Total loans, gross, by category 25 Real estate loans 8,352 89 3,921 65 2,147 24 549 0 26 Loans to depository institutions 63,481 44,223 46,117 30,226 12,037 9,792 3,871 3,075 27 Commercial banks in United States (including IBFs) . 35,272 17,948 24,796 10,526 7,545 5,399 2,624 1,898 28 U.S. branches and agencies of other foreign banks . 32,512 16,901 22,408 9,615 7,308 5,280 2,579 1,881 29 Other commercial banks in United States 2,760 1,047 2,388 910 237 120 46 17 30 Other depository institutions in United States (including IBFs) 196 115 119 69 14 0 15 0 31 Banks in foreign countries 28,014 26,159 21,203 19,631 4,478 4,392 1,232 1,177 32 Foreign branches of U.S. banks 1,071 997 864 790 183 182 25 25 33 Other banks in foreign countries 26,943 25,163 20,340 18.841 4,295 4,210 1,207 1,152 34 Other financial institutions 5,687 920 3,530 836 930 39 1,000 28 35 Commercial and industrial loans 93,833 18,195 60,341 15,338 17,252 2,183 9,038 352 36 U.S. addressees (domicile) 71,469 77 41,975 49 14,644 26 8,605 0 37 Non-U.S. addressees (domicile) 22,364 18,118 18,366 15.289 2,608 2,157 433 352 38 Acceptances of other banks 1,022 22 854 17 126 0 17 5 39 U.S. banks 431 2 289 2 124 0 0 0 40 Foreign banks 592 21 564 16 1 0 16 5 41 Loans to foreign governments and official institutions (including foreign central banks) 17,169 14,697 14,720 12,563 1,393 1,345 343 280 42 Loans for purchasing or carrying securities (secured and unsecured) 4,200 104 3,656 72 466 0 62 32 43 All other loans 2,317 255 1,895 179 96 55 157 0 44 All other assets 32,373 3,429 24,626 2,503 6,547 675 748 214 45 Customers' liability on acceptances outstanding 21,489 n.a. 15,871 n.a. 5,214 n.a. 231 n.a. 46 U.S. addressees (domicile) 14,683 n.a. 10,027 n.a. 4,386 n.a. 211 n.a. 47 Non-U.S. addressees (domicile) 6.806 n.a. 5,845 n.a. 827 n.a. 20 n.a. 48 Other assets including other claims on nonrelated parties 10,884 3,429 8,755 2,503 1,333 675 517 214 49 Net due from related depository institutions5 28,452 28,227 18,609 22,678 6,492 2,855 0 182 50 Net due from head office and other related depository institutions5 28,452 n.a. 18,609 n.a. 6,492 n.a. 0 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 28,227 n.a. 22,678 n.a. 2,855 n.a. 182 52 Total liabilities4 395,893 195,277 295,029 154,394 60,964 27,070 22,008 8,430 53 Liabilities to nonrelated parties 345,562 170,151 267,481 135,161 54,089 23,776 13,316 6,219 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 c IB 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 ng o IB nl F y s 3 ex T c IB l o u t F d a s l i ng o IB nl F y s 3 54 Total deposits and credit balances 54,912 134,695 46,615 119,216 1,645 8,661 2,817 2,324 55 Individuals, partnerships, and corporations 42,770 13,496 35,377 10,312 1,501 341 2,177 104 56 U.S. addressees (domicile) 33,700 466 29,074 461 437 0 1,997 0 57 Non-U.S. addressees (domicile) 9,070 13,030 6,303 9,851 1,065 341 181 104 58 Commercial banks in United States (including IBFs) . 8,587 47,235 7,892 40,579 46 4,643 621 1,217 59 U.S. branches and agencies of other foreign banks . 4,355 40,720 3,782 34,780 5 4,173 551 1,105 60 Other commercial banks in United States 4,232 6,515 4,110 5,799 40 470 69 112 61 Banks in foreign countries 1,876 68,460 1,815 63,076 14 3,627 3 911 62. Foreign branches of U.S. banks 224 7,443 224 6,206 0 6/1 0 383 63 Other banks in foreign countries 1,652 61,018 1,592 56,870 14 2,956 3 529 64 Foreign governments and official institutions (including foreign central banks) //O 5,019 /46 4,765 17 50 3 9911 65 All other deposits and credit balances 318 484 291 483 4 0 2 0 66 Certified and official checks 591 494 63 11 67 Transaction accounts and credit balances (excluding IBFs) 5, 988 5,126 210 235 68 Individuals, partnerships, and corporations 3,670 2,984 136 218 69 U.S. addressees (domicile) 2,459 2,038 90 214 70 Non-U.S. addressees (domicile) 1,211 946 46 3 71 Commercial banks in United States (including IBFs) . 391 382 5 0 72 U.S. branches and agencies of other foreign banks . 82 81 0 0 73 Other commercial banks in United States 310 n a. 301 n a. 4 n.a. 0 n a. 74 Banks in foreign countries 918 877 4 2 75 Foreign branches of U.S. banks 12 12 0 0 76 Other banks in foreign countries 906 865 4 2 77 Foreign governments and official institutions (including foreign central banks) 289 281 1 3 78 All other deposits and credit balances 129 109 3 1 79 Certified and official checks 591 494 63 11 80 Demand deposits (included in transaction accounts and credit balances) 4,833 4,136 133 225 81 Individuals, partnerships, and corporations 3,168 2,634 61 207 87 U.S. addressees (domicile) 2,092 1,781 30 204 83 Non-U.S. addressees (domicile) 1,077 853 31 3 84 Commercial banks in United States (including IBFs) . 155 146 4 0 85 U.S. branches and agencies of other foreign banks . > 5 0 0 86 Other commercial banks in United States 149 n a. 141 n a. 4 n a. 0 n.a. 87 Banks in foreign countries 620 580 3 2 88 Foreign branches of U.S. banks 1 1 0 0 89 Other banks in foreign countries 619 5/9 3 2 90 Foreign governments and official institutions (including foreign central banks) 225 217 1 3 91 All other deposits and credit balances 74 65 0 1 92 Certified and official checks 591 494 63 11 93 Non-transaction accounts (including MMDAs, excluding IBFs) 48,923 41,489 1,434 2,582 94 Individuals, partnerships, and corporations 39,100 32,393 1,366 1,960 95 U.S. addressees (domicile) 31,240 27,036 347 1,782 96 Non-U.S. addressees (domicile) 7, (60 5,357 1,019 177 97 Commercial banks in United States (including IBFs) . 8,196 7,510 41 620 98 U.S. branches and agencies of other foreign banks . 4,274 3,700 5 551 99 Other commercial banks in United States 3,922 n a. 3,809 n a. 36 n a. 69 n.a. 100 Banks in foreign countries 958 938 10 1 101 Foreign branches of U.S. banks 212 212 0 0 102 Other banks in foreign countries 746 726 10 1 103 Foreign governments and official institutions (including foreign central banks) 481 465 15 0 104 All other deposits and credit balances 188 183 2 1 105 IBF deposit liabilities 134,695 119,216 8,661 2,324 106 Individuals, partnerships, and corporations 13,496 10,312 341 104 107 U.S. addressees (domicile) 466 461 0 0 108 Non-U.S. addressees (domicile) 13,030 9,851 341 104 109 Commercial banks in United States (including IBFs) . 47,235 40,579 4,643 1,217 110 U.S. branches and agencies of other foreign banks . 40,720 34,780 4,173 1,105 111 Other commercial banks in United States n a. 6,515 n a. 5,799 n a. 470 n.a. 112 117 Banks in foreign countries 68,460 63,076 3,627 911 113 Foreign branches of U.S. banks 7,443 6,206 6/1 383 114 Other banks in foreign countries 61,018 56,870 2,956 529 115 Foreign governments and official institutions (including foreign central banks) 5,019 4,765 50 91 116 All other deposits and credit balances 484 483 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • August 1987 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1987'—Continued Millions of dollars All states2 New York California Illinois IItteemm in T c I l B o u t F d a s i l n g o IB nl F y s 3 in T c 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 41,345 2,825 31,420 1,482 7,889 1,194 1,458 49 IIS U.S. branches and agencies of other foreign banks ... 14,924 1,496 10,034 649 3,977 731 714 32 119 Other commercial banks in United States 10,560 220 7,385 85 2,256 ,25 620 0 120 Other 15,862 1,109 14,000 748 1,655 338 124 17 121 Other borrowed money 80,692 29,876 44,175 12, 388 29,012 13,474 6,071 3,652 122 Owed to nonrelated commercial banks in United States (including IBFs) 55,805 12,557 30,336 3,699 21,592 7,967 2,704 698 123 Owed to U.S. offices of nonrelated U.S. banks 25,018 2,513 15,691 931 7,592 1,352 1,037 119 124 Owed to U.S. branches and agencies of nonrelated foreign banks 30,787 10,044 14,645 2,768 13,999 6,615 1,667 5/9 125 Owed to nonrelated banks in foreign countries 16,660 15,734 7,704 7,170 5,777 5,442 2,991 2,954 126 Owed to foreign branches of nonrelated U.S. banks .. 2,519 2,379 822 747 1,276 1,211 316 316 127 Owed to foreign offices of nonrelated foreign banks... 14,142 13,354 6,882 6,423 4,501 4,231 2,675 2,638 128 Owed to others 8,227 1,585 6,135 1.520 1,643 65 377 0 129 All other liabilities 33,918 2,755 26,055 2,075 6,882 446 646 194 130 Branch or agency liability on acceptances executed and outstanding 25,581 n a. 19,253 n a. 5,908 n a. 238 n a. 131 Other liabilities to nonrelated parties 8,337 2,755 6,802 2,075 975 446 408 194 132 Net due to related depository institutions5 50,331 25,126 27,548 19,233 6,875 3,294 8,692 2,211 133 Net due to head office and other related depository institutions5 50,331 n a. 27,548 n a. 6,875 n.a. 8,692 n a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 25,126 n.a. 19,233 n.a. 3,294 n.a. 2,211 MEMO 135 Non-interest bearing balances with commercial banks in United States 2,237 2 2,011 2 114 0 49 0 136 Holding of commercial paper included in total loans .... 639 483 60 91 137 Holding of own acceptances included in commercial and industrial loans 3,649 2,711 678 123 138 Commercial and industrial loans with remaining maturity of one year or less 56,370 35,080 10,700 6,119 139 Predetermined interest rates 34,127 n a. 20,035 n.a. 7,560 n a. 4,159 n a. 140 Floating interest rates 22,243 15,045 3,140 1,960 141 Commercial and industrial loans with remaining maturity of more than one year 37,463 25,261 6,552 2,919 142 Predetermined interest rates 12,733 7,906 2,672 1,453 143 Floating interest rates 24,730 17,356 3,880 1,466 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 ng o IB nl F y s 3 ex T c IB l o u t F d a s l i ng o IB nl F y s 3 ex T c IB 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 ng 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 57,870 1 50,254 I 1,407 I 3,040 t 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 36,629 30,880 1,058 2,120 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee n.a. n.a. 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 7,355 J 6,870 I 185 230 wwww 11112222 iiiitttt hhhh mmmm oooo rrrreeee nnnn mmmm tttthhhh aaaa ssss iiii nnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn n 1 .a. n 1 .a. 13,886 12,504 164 689 All states2 New York California Illinois Total Total Total Total inc I l B u F d s in g o IB nl F y s 3 inc I l B u F d s in g o IB nl F y s 3 inc I l B u F d s i ng o IB nl F y s 3 inc I l B u F d s i ng o IB nl F y s 3 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 2299,,335533 8,171 2233,,886611 6,227 33,,663311 1,641 887733 209 111155550000 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 5522,,115599 n.a. 2288,,992299 n.a. 2200,,444466 n.a. 11,,779944 n.a. 448888 222211 112222 4477 1. Data are aggregates of categories reported on the quarterly form FF1EC 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. 11 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 DIVISION OF RESEARCH AND STATISTICS JOSEPH R. COYNE, Assistant to the Board JAMES L. KICHLINE, Staff Director DONALD J. WINN, Assistant to the Board EDWARD C. ETTIN, Deputy Director NORMAND R.V. BERNARD, Special Assistant to the Board DONALD L. KOHN, Deputy Director LYNN SMITH FOX, Special Assistant to the Board (Monetary Policy and Financial Markets) BOB S. MOORE, Special Assistant to the Board MICHAEL J. PRELL, Deputy Director JARED J. ENZLER, Associate Director LEGAL DIVISION DAVID E. LINDSEY, Associate Director ELEANOR J. STOCKWELL, Associate Director MICHAEL BRADFIELD, General Counsel MARTHA BETHEA, Deputy Associate Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel THOMAS D. SIMPSON, Deputy Associate Director RICHARD M. ASHTON, Associate General Counsel LAWRENCE SLIFMAN, Deputy Associate Director OLIVER IRELAND, Associate General Counsel PETER A. TINSLEY, Deputy Associate Director RICKI R. TIGERT, Assistant General Counsel SUSAN J. LEPPER, Assistant Director MARYELLEN A. BROWN, Assistant to the General Counsel RICHARD D. PORTER, Assistant Director MARTHA S. SCANLON, Assistant Director JOYCE K. ZICKLER, Assistant Director OFFICE OF THE SECRETARY LEVON H. GARABEDIAN, Assistant Director (Admin is t rat ion) WILLIAM W. WILES, Secretary BARBARA R. LOWREY, Associate Secretary JAMES MCAFEE, Associate Secretary DIVISION OF INTERNATIONAL FINANCE EDWIN M. TRUMAN, Staff Director DIVISION OF CONSUMER LARRY J. PROMISEL, Senior Associate Director AND COMMUNITY AFFAIRS CHARLES J. SIEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director DONALD B. ADAMS, Assistant Director ELLEN MALAND, Assistant Director PETER HOOPER III, Assistant Director DOLORES S. SMITH, Assistant Director KAREN H. JOHNSON, Assistant Director RALPH W. SMITH, JR., Assistant Director DIVISION OF BANKING SUPERVISION AND REGULATION WILLIAM TAYLOR, Staff 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 EDWARD W. KELLEY, JR. 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 PORTIA W. THOMPSON, Equal Employment Opportunity Programs Officer DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF PERSONNEL CLYDE H. FARNSWORTH, JR., Director ELLIOTT C. MCENTEE, Associate Director DAVID L. SHANNON, Director DAVID L. ROBINSON, Associate Director JOHN R. WEIS, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director CHARLES W. WOOD, Assistant Director CHARLES W. BENNETT, 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 DAVID L. WILLIAMS, 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 • August 1987 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE MEMBERS PAUL A. VOLCKER, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL H. ROBERT HELLER EDWARD W. KELLEY, JR. EDWARD G. BOEHNE MANUEL H. JOHNSON MARTHA R. SEGER ROBERT H. BOYKIN SILAS KEEHN GARY H. STERN ALTERNATE MEMBERS ROBERT P. BLACK ROBERT P. FORRESTAL ROBERT T. PARRY THOMAS M. TIMLEN STAFF DONALD L. KOHN, Secretary and Staff Adviser RICHARD W. LANG, Associate Economist NORMAND R.V. BERNARD, Assistant Secretary DAVID E. LINDSEY, Associate Economist ROSEMARY R. LONEY, Deputy Assistant Secretary MICHAEL J. PRELL, Associate Economist MICHAEL BRADFIELD, General Counsel ARTHUR J. ROLNICK, Associate Economist JAMES H. OLTMAN, Deputy General Counsel HARVEY ROSENBLUM, Associate Economist JAMES L. KICHLINE, Economist KARL A. SCHELD, Associate Economist EDWIN M. TRUMAN, Economist (International) CHARLES J. SIEGMAN, Associate Economist PETER FOUSEK, Associate Economist THOMAS D. SIMPSON, 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 G. MEDLIN JR., President JULIEN L. MCCALL, Vice President JOHN F. MCGILLICUDDY, DEWALT H. ANKENY, JR., AND F. PHILLIPS GILTNER, Directors 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, Twelfth District HERBERT V. PROCHNOW, SECRETARY WILLIAM J. KORSVIK, ASSOCIATE SECRETARY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All 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, Denver, Colorado, President JAMIE J. JACKSON, Houston, 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, payment should accompany request and be made to the $13.50 each. Board of Governors of the Federal Reserve System. Payment FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updatfrom foreign residents should be drawn on a U.S. bank. ed at least monthly. (Requests must be prepaid.) Stamps and coupons are not accepted. Consumer and Community Affairs Handbook. $75.00 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- Monetary Policy and Reserve Requirements Handbook. TIONS. 1984. 120 pp. $75.00 per year. ANNUAL REPORT. Securities Credit Transactions Handbook. $75.00 per year. ANNUAL REPORT: BUDGET REVIEW, 1986-87. Federal Reserve Regulatory Service. 3 vols. (Contains all FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or three Handbooks plus substantial additional material.) $2.00 each in the United States, its possessions, Canada, $200.00 per year. and Mexico; 10 or more of same issue to one address, Rates for subscribers outside the United States are as $18.00 per year or $1.75 each. Elsewhere, $24.00 per follows and include additional air mail costs: year or $2.50 each. Federal Reserve Regulatory Service, $250.00 per year. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint Each Handbook, $90.00 per year. of Part I only) 1976. 682 pp. $5.00. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A BANKING AND MONETARY STATISTICS. 1941-1970. 1976. MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. 1,168 pp. $15.00. WELCOME TO THE FEDERAL RESERVE. ANNUAL STATISTICAL DIGEST PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- 1974-78. 1980. 305 pp. $10.00 per copy. SERVE SYSTEM. August 1985. 30 pp. 1981. 1982. 239 pp. $ 6.50 per copy. WRITING IN STYLE AT THE FEDERAL RESERVE. August 1984. 1982. 1983. 266 pp. $ 7.50 per copy. 93 pp. $2.50 each. 1983. 1984. 264 pp. $11.50 per copy. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 1984. 1985. 254 pp. $12.50 per copy. 440 pp. $9.00 each. 1985. 1986. 231 pp. $15.00 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. HISTORICAL CHART BOOK. Issued annually in Sept. $1.25 December 1986. 264 pp. $10.00 each. each in the United States, its possessions, Canada, and Mexico; 10 or more to one address, $1.00 each. Elsewhere, $1.50 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- CONSUMER EDUCATION PAMPHLETS RIES OF CHARTS. Weekly. $21.00 per year or $.50 each in Short pamphlets suitable for classroom use. Multiple copies the United States, its possessions, Canada, and Mexico; are available without charge. 10 or more of same issue to one address, $19.50 per year or $.45 each. Elsewhere, $26.00 per year or $.60 each. 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 Brayton 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 Bank Lending to Developing Countries. 10/84. PRICING FROM 1983 THROUGH 1985, by Patrick I. Survey of Consumer Finances, 1983: A Second Report. Mahoney, Alice P. White, Paul F. O'Brien, and Mary 12/84. M. McLaughlin. January 1987. 30 pp. Union Settlements and Aggregate Wage Behavior in the 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A 1980s. 12/84. REVIEW OF THE LITERATURE, by Mark J. War- The Thrift Industry in Transition. 3/85. shawsky. April 1987. 18 pp. 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. Financial Characteristics of High-Income Families. 3/86. Limit of 10 copies Prices, Profit Margins, and Exchange Rates. 6/86. Foreign Experience with Targets for Money Growth. 10/83. Agricultural Banks under Stress. 7/86. Intervention in Foreign Exchange Markets: A Summary of Foreign Lending by Banks: A Guide to International and Ten Staff Studies. 11/83. U.S. Statistics. 10/86. A Financial Perspective on Agriculture. 1/84. Recent Developments in Corporate Finance. 11/86. Survey of Consumer Finances, 1983. 9/84. U.S. International Transactions in 1986. 5/87. 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, 8 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 CSV? 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, 6, 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, 73 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, 73 Federal Reserve Banks Commercial and industrial loans, 16, 18, 19, 20, 21, 73 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—continued Certificate account, 10 Financial institutions, 26 Stock, 4, 54 Terms, yields, and activity, 38 Government National Mortgage Association, 33, 38, 39 Type of holder and property mortgaged, 39 Gross national product, 51 Repurchase agreements, 6, 17, 19, 20, 21 Reserve requirements, 8 HOUSING, new and existing units, 49 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 SAVING Federal Reserve Banks, 7 Flow of funds, 42, 43 Foreign central banks and foreign countries, 67 National income accounts, 51 Money and capital markets, 24 Savings and loan associations, 26, 39, 40, 42. (See also Mortgages, 38 Thrift institutions) Prime rate, 23 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, 76 Special drawing rights, 4, 10, 53, 54 Federal Reserve Banks, 10, 11 State and local governments Financial institutions, 26, 39 Deposits, 19, 20 Holdings of U.S. government securities, 30 LABOR force, 45 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities issued by, 19, 20, 26 Loans (See also specific types) Rates on securities, 24 Banks, by classes, 18-20 Stock market, selected statistics, 25 Commercial banks, 3, 16, 18-20, 76 Stocks (See also Securities) Federal Reserve Banks, 4, 5, 7, 10, 11 New issues, 34 Financial institutions, 26, 39 Prices, 25 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 MANUFACTURING Capacity utilization, 46 Production, 46, 48 TAX receipts, federal, 29 Margin requirements, 25 Thrift institutions, 3. (See also Credit unions and Savings Member banks (See also Depository institutions) and loan associations) Federal funds and repurchase agreements, 6 Time and savings deposits, 3, 13, 17, 18, 19, 20, 21 Reserve requirements, 8 Trade, foreign, 54 Mining production, 48 Treasury cash, Treasury currency, 4 Mobile homes shipped, 49 Treasury deposits, 4, 10, 28 Monetary and credit aggregates, 3, 12 Treasury operating balance, 28 Money and capital market rates, 24 UNEMPLOYMENT, 45 Money stock measures and components, 3,13 U.S. government balances Mortgages (See Real estate loans) Commercial bank holdings, 18, 19, 20 Mutual funds, 35 Treasury deposits at Reserve Banks, 4, 10, 28 Mutual savings banks, (See Thrift institutions) U.S. government securities Bank holdings, 18-20, 21, 30 Dealer transactions, positions, and financing, 32 NATIONAL defense outlays, 29 Federal Reserve Bank holdings, 4, 10, 11, 30 National income, 51 Foreign and international holdings and transactions, 10, 30, 66 OPEN market transactions, 9 Open market transactions, 9 Outstanding, by type and holder, 26, 30 PERSONAL income, 52 Rates, 24 Prices U.S. international transactions, 53-67 Consumer and producer, 44, 50 Utilities, production, 48 Stock market, 25 Prime rate, 23 VETERANS Administration, 38, 39 Producer prices, 44, 50 Production, 44, 47 WEEKLY reporting banks, 19-21 Profits, corporate, 35 Wholesale (producer) prices, 44, 50 REAL estate loans Banks, by classes, 16, 19, 20, 39 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 William H. Stone, Jr. CLEVELAND* 44101 Charles W. Parry vacancy John R. Miller William H. Hendricks Cincinnati 45201 Owen B. Butler Charles A. Cerino1 Pittsburgh 15230 James E. Haas Harold J. Swart1 RICHMOND* 23219 Leroy T. Canoles, Jr. Robert P. Black Robert A. Georgine Jimmie R. Monhollon Baltimore 21203 Gloria L. Johnson Robert D. McTeer, Jr.1 Charlotte 28230 Wallace J. Jorgenson Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Bradley Currey, Jr. Robert P. Forrestal Larry L. Prince Jack Guynn Delmar Harrison1 Birmingham 35283 A. G. Trammell Fred R. Herr1 Jacksonville 32231 Andrew A. Robinson James D. Hawkins1 Miami 33152 Robert D. Apelgren Patrick K. Barron1 Nashville 37203 C. Warren Neel Donald E. Nelson New Orleans 70161 Caroline K. Theus Henry H. Bourgaux CHICAGO* 60690 Robert J. Day Silas Keehn Marcus Alexis Daniel M. Doyle Detroit 48231 Robert E. Brewer Roby L. Sloan1 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 Guffey Robert G. Lueder Henry R. Czerwinski Denver 80217 James E. Nielson Enis Alldredge, Jr. 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 Tony J. Salvaggio1 El Paso 79999 Mary Carmen Saucedo Sammie C. Clay Houston 77252 Walter M. Mischer, Jr. J. Z. Rowe1 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. Warren2 Portland 97208 Paul E. Bragdon Angelo S. Carella1 Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett1 Seattle 98124 John W. Ellis Gerald R. Kelly1 *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 1F. RSAenSioErR V ice President. http://fraser.s2.t loEuxiescfuetdiv.oe rVg/i ce President. Federal Reserve Bank of St. Louis

A84 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Helena Minneapolis jS'l'Lakea^ ^ Denver* @ Kansas City \ \Oklahoma City. 'yfosj "ge/es Dallas® , Houston \San Antonio April 1984 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 The Board also publishes the Consumer Handbook PUBLICATIONS to Credit Protection Laws, a complete guide to consumer credit protections. This 44-page booklet explains how to use the credit laws to shop for credit, The Federal Reserve Board publishes a series of apply for it, keep up credit ratings, and complain about pamphlets covering individual credit laws and topics, an unfair deal. as pictured below. The series includes such subjects as Copies of consumer publications are available free how the Equal Credit Opportunity Act protects wom- of charge from Publications Services, Mail Stop 138, en against discrimination in their credit dealings, how Board of Governors of the Federal Reserve System, to use a credit card, and how to use Truth in Lending Washington, D.C. 20551. Multiple copies for classinformation to compare credit costs. room use are also available free of charge. What Thithln Lending Means To You Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis