Federal Reserve Bulletin, 1988-03

VOLUME 74 • NUMBER 3 • MARCH 1988 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 • Donald L. Kohn • Michael J. Prell • 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 151 MONETAR Y POLICY REPORT TO THE 171 LEGAL DEVELOPMENTS CONGRESS Various bank holding company, bank ser- Growth of real gross national product at 33A vice corporation, and bank merger orders; percent over the four quarters of 1987 out- and pending cases. stripped most expectations, and the unemployment rate dropped below 6 percent for AI FINANCIAL AND BUSINESS STATISTICS the first time in this decade. A3 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics 165 INDUSTRIAL PRODUCTION A53 International Statistics Industrial production increased an estimated 0.2 percent in December. A69 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL 167 ANNOUNCEMENTS TABLES Statement by Chairman Greenspan regard- A70 BOARD OF GOVERNORS AND STAFF ing Task Force on Market Mechanisms. Appointment of new members to the Thrift All FEDERAL OPEN MARKET COMMITTEE Institutions Advisory Council. AND STAFF; ADVISORY COUNCILS Preliminary figures released on income of A74 FEDERAL RESERVE BOARD Federal Reserve Banks. PUBLICATIONS Revised List of Marginable OTC Stocks now available. All INDEX TO STATISTICAL TABLES Changes in Board staff. A79 FEDERAL RESERVE BANKS, BRANCHES, Admission of one state bank to membership AND OFFICES in the Federal Reserve System. A80 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress ft t Report submitted to the Congress on February While M3 grew at a pace equal to the lower 23, 1988, pursuant to the Full Employment and bound of the range set for the year by the Federal Balanced Growth Act of 1978.1 Open Market Committee, M2 fell short of its range. After the plunge in the stock market in October, the System focused its efforts primarily MONETAR Y POLIC Y AND THE on ensuring adequate liquidity in the economy, ECONOMIC OUTLOOK FOR 1988 and since that time interest rates have reversed a good part of the rise that occurred earlier in 1987. The national economy has scored major gains in However, conditions in financial markets have the past year. Growth of real gross national yet to return fully to "normal," and the edginess product at 33A percent over the four quarters of of participants continues to be reflected in vola- 1987 outstripped most expectations, and the un- tility and fairly sizable risk premia. Moreover, employment rate dropped below 6 percent for the there have been some signs of weakness in the first time in this decade. With such sectors as economy recently. In particular, the fourth quaragriculture, mining, and manufacturing benefit- ter of 1987 was marked by a sharp rise in ing considerably from an improved competitive inventories in a few sectors, and there were position internationally, the expansion of the indications of a slackening in labor demand early economy was better balanced than in 1985-86. this year. Against this backdrop, the system Wage increases remained moderate and contrib- eased a bit further the pressures on reserve uted to favorable cost trends in many sectors; positions of depository institutions in the past however, a rebound in oil prices, coupled with several weeks. the effects of the dollar's decline on the prices of But while the Federal Reserve has had to be imported goods generally, pushed the rate of responsive to the risks of an economic downturn, price inflation back up to the 4 percent range by it has not lost sight of the potential influence of most measures. policy actions on longer-term trends in the econ- At times last year, soaring commodity prices omy. The United States is in the process of an and sharp declines in the dollar and bond prices important readjustment in the balance of ecosignaled the possibility of greater inflationary nomic activity, after a period of several years in dangers. With the economy moving toward which growth of domestic spending outstripped higher levels of resource utilization, the Federal the pace of domestic production. Over that span, Reserve had to be especially alert to these and the trade balance moved into deep deficit, and other indications of pressures that might have led the nation began to amass a huge net external to a significant departure from the longer-run debt. It is important to allow room for a signifitrend toward price stability. In these circum- cant improvement in our trade balance, espestances, monetary policy was characterized by a cially given that high rates of capacity utilization tendency toward greater restraint through last and low unemployment evident in many seg- October; this was reflected in a moderate rise in ments of industry suggest the need for added care money market interest rates, which in turn in maintaining progress toward price stability. damped growth of the monetary aggregates. These considerations underlay the decisions of ! - V.AfJ-J the Federal Open Market Committee when it met earlier this month to chart its monetary policy 1. The charts for the report are available on request from strategy for 1988. Such considerations also must Publications Services, Board of Governors of the Federal be kept in the forefront as decisionmakers else- Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • March 1988 where in the government set policy. In particu- The velocity of M2 has exhibited a substantial lar, continuing fiscal restraint is crucial if we are short-run sensitivity to movements in market to free up resources to finance productivity- rates of interest. Although deregulation has made enhancing private investment while bringing it possible for itf&irfitioiis to keep rates on p3pj|r about an improved pattern of international trans- its in line with market interest rates, in practice actions. Moreover, additional efforts at bringing the adjustment of rates on many instruments has greater coherence to policies domestically and been sluggish. In addition, savers seemingly have internationally will promote greater stability in become more attuned to alternative investment financial markets and greater internal and exter- opportunities, responding strongly to changes in nal balance to the economy. relative returns. As a result, the sensitivity of money to movements in market interest rates Monetary Policy Plans for 1988 seems to have increased since deregulation. In 1987, as rates rose, savers had incentives to favor Decisions regarding the ranges for money and market instruments, and their response held credit growth in 1988 were shaped in part by the down the growth of M2, and to a lesser extent experience of 1987. Last February, the FOMC M3, resulting in increases in their velocities. This established annual target ranges of 5Vi to 8V2 outcome was in marked contrast to 1986, when percent for both M2 and M3; both aggregates had falling interest rates and inflation were reflected increased more than 9 percent in 1986, but slower in faster money growth and substantial declines growth was expected to be consistent with the in velocity. Committee's goal of sustaining business expan- For 1988, the Committee set ranges of 4 to 8 sion while maintaining long-run progress toward percent for growth of M2 and M3. Expansion of price stability. money within these ranges, whose midpoints are one percentage point lower than those of the 1. Ranges of growth for monetary and debt ranges for last year, would be expected to supaggregates port economic growth at a pace that is consistent Percent change, fourth quarter to fourth quarter with continued external adjustment and progress over time toward price stability. In light of the Monetary aggregate 1988 1987 experience of recent years, which have been M2 4444 ttttoooo 8888 5555''''AAAA ttttoooo 8888''''////2222 marked by large swings in velocity, the ranges M3 4444 ttttoooo 8888 5555''''////>>>> ttttoooo 8888''''////2222 Debt 7777 ttttoooo 11111111 8888 ttttoooo 11111111 were widened somewhat. Institutional change is a source of continuing "noise" in the relation- The deceleration proved sharper than antici- ship of money growth to economic activity; in pated, and in July, the Committee stated that addition, there clearly is a strong, systematic growth for the year around the lower ends of sensitivity of velocity to changes in market rates these ranges, or even below them, might be of interest. This sensitivity means that even small acceptable in certain circumstances; velocity had changes in rates occasioned by variations in increased in the first half of the year partly under spending or prices can have sizable effects on the the influence of rising interest rates, and the quantity of money the public wishes to hold. Committee agreed that if inflation forces were to Combined with an uncertain outlook for the exhibit renewed strength and interest rates were economy and inflation, this implies that wider to increase further in the second half of the year, ranges are needed to encompass possible outcontinued slow money expansion might be ap- comes for monetary growth consistent with satpropriate. Rates did move upward again in the isfactory economic performance in 1988. Thus, while the Committee at this time expects that late summer, including an increase of Vi percentgrowth of M2 and M3 will be around the middle age point in the discount rate to counter potential of their ranges, the outcome could differ if signifinflation. M2 growth did in fact fall substantially icant changes in interest rates are required to short of the Committee's range, at 4 percent for counter unanticipated weakness in aggregate dethe year, while M3 growth, at 5 Vi percent, was at mand or an intensification of inflation. In carrythe lower end of its range. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 153 ing out policy, the Committee will continue to in recent years, also are being affected by evolvassess the behavior of the aggregates in light of ing practices in payments for bank services and information about the pace of business expansion in business cash management. and the source and strength of price pressures, with attention to the performance of the dollar on Economic Projections foreign exchange markets and other indicators of the impact of monetary policy. As table 2 indicates, the uncertainties attending The Committee will continue to monitor the the present economic situation are reflected in a growth of debt in 1988. The expansion of the debt considerable range of forecasts among Commitof domestic nonfinancial sectors is expected to tee members and other Reserve Bank presidents. slow somewhat from the 9V2 percent pace of However, the central-tendency ranges shown 1987, to around the middle portion of a 7 to 11 encompass the vast majority of forecasts and percent range. Growth of debt, however, appears point to growth in real GNP of 2 to 2Vi percent in likely to outpace that of income, as it has for the 1988. i past several years; although the debt of govern- This pace of activity would be expected to mental units may not grow as rapidly as it did last generate appreciable gains in employment over year, continued rapid expansion of private debt the year—about in line with labor force growth— is probable, unless the current tide of corporate and the civilian unemployment rate is projected restructurings ebbs. to change little on balance between now and the The Committee decided not to establish a end of 1988. Prices, as measured by the implicit range for Ml in 1988. It is especially difficult to price deflator for GNP, are expected to rise VA to anticipate the relationship between growth in this 33/ percent, not appreciably different from the 4 aggregate and the performance of the economy. pace last year; consumer prices likely will in- The character of this aggregate had been affected crease a little faster than the deflator. The cenmore than the broader monetary aggregates by tral-tendency forecasts encompass the adminisderegulation, because it now contains a large tration's projections for real GNP, but are a bit volume of interest-earning accounts that serve as more optimistic on prospects for price inflation. savings as well as transactions vehicles. The Higher real net exports of goods and services rates on these accounts have proved especially are expected to provide a major impetus to U.S. slow to respond to market rates, and inflows to economic activity in 1988. As reflected by the these accounts are very sensitive to differentials rapid growth of real exports of goods and serin interest returns. Because flows into and out of vices of more than 15 percent last year, the NOW accounts frequently involve other retail international competitiveness of U.S. producers deposits, they do not greatly affect M2 or M3, but has improved significantly. By and large, U.S. do result in sizable variations in Ml growth. manufacturers have let the foreign currency Moreover, demand deposits, which have demon- prices of their products decline with the deprecistrated increased sensitivity to rate movements ation of the dollar, achieving enhanced profit- 2. Economic projections for 1988 Percent FOMC members and other FRB Presidents Item Administration Central Range tendency C N h o a m n i g n e a , l f G ou N rt P h quarter to fourth quarter 4 to 6lA 5 V* to 6 6.4 Real GNP Vi to 3 2 to 2V4 2.4 Implicit deflator for GNP 2 V5 to 4 VA to 33/4 3.9 Average level in the fourth quarter Civilian unemployment rate 5'/> to 63A 53/4 to 6 5.81 1. Overall unemployment rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 Federal Reserve Bulletin • March 1988 ability through greater volume and aggressive this year after their sharp rebound in 1987. Howefforts to increase efficiency and control costs. ever, prices of non-oil imports likely will con- This enhanced competitiveness is expected to tinue to rise substantially further in the wake of provide a further boost to export growth this the decline in the foreign exchange value of the year, while the increases in the relative prices of dollar in 1987, providing continuing impetus to foreign goods apparently now in train should domestic inflation. This impulse to prices associcurb import growth. As a result, some improve- ated with the dollar's depreciation is an unavoidment in the nation's current account balance is able component of the process of correcting anticipated this year. external imbalance, as an increase in the relative In contrast, domestic demand is expected to price of foreign goods encourages exports and remain relatively subdued in 1988, as the econ- discourages imports. However, if we are to mainomy moves toward a better balance between tain and extend the progress made in the 1980s domestic spending and domestic production. toward price stability, it is crucial that business Consumer demand probably will be damped to a and labor continue to exercise restraint in price degree by the loss of household wealth associ- and wage behavior. The forecasts of the FOMC ated with the decline in stock prices last fall. members and other Reserve Bank presidents Some increase in personal saving would be ben- anticipate that such a pattern will persist through eficial to the economy, as it would aid investment this year. It is important, too, that the Congress and help reduce our dependence on foreign cap- remain mindful of the effects of legislation on the ital. However, a severe retrenchment by con- cost structure of American industry. sumers could have a significant deflationary ef- The forecasts of the Federal Reserve policyfect; fortunately, the indications from surveys of makers also assume further progress in reducing household attitudes are that the sharp drop in the federal budget deficit. Continuing evidence of confidence that occurred immediately after the fiscal restraint is viewed as crucial in maintaining October shock has been substantially reversed. financial conditions that are conducive to bal- Housing activity should pick up some in coming anced growth and to an improved pattern of months as a result of the recent decline in mort- international transactions. It is critical, in that gage rates. In addition, business spending on regard, that the package of deficit-reduction meaplant and equipment should be buttressed by the sures agreed to in December for 1988 and 1989 be desire to build upon the progress made in regain- fully implemented. ing international competitiveness and by already high levels of capacity utilization in a number of major industries. THE PERFORMANCE OF THE ECONOMY Although real GNP should rise moderately for DURING THE PAST YEAR the year as a whole, the pattern of growth may be uneven over time. An adjustment to the runup in The economy completed a fifth consecutive year inventories that occurred in the fourth quarter of of expansion in 1987, with real gross national 1987 could produce relatively slow output growth product increasing about VA percent over the during the first part of the year. Such an adjust- four quarters of the year.2 The overall growth in ment appears in process in the auto sector, in output not only was greater than in 1986, but was light of domestic automakers' current assembly better balanced across industries and regions of schedules; there may also be similar patterns in a the country. In addition, the rise in activity few other sectors, but at this time there are no supported a net gain of more than three million signs that deep cutbacks in production will be jobs last year, and the civilian unemployment necessary. rate stood at 5.8 percent in January of this year, Although no significant change is anticipated in the overall pace of inflation this year, the primary source of the rise in prices is likely to change. 2. Except where noted, all percent changes are from the Assuming relative stability in world oil prices, fourth quarter of the previous year to the fourth quarter of the domestic energy prices should increase only a bit year indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 155 nearly a percentage point below its year-ago in real net exports, and the nominal trade deficit level. widened to almost $160 billion in 1987. In addi- Virtually all broad measures of inflation—after tion, a further erosion of net income on investdropping sharply in 1986—rebounded in 1987 to ments and other service transactions pushed the about the pace seen in 1984 and 1985. In large current account deficit above $160 billion. part, the pattern of price movements over the Although economic activity rose at a brisk past two years reflected developments in oil pace for 1987 as a whole, the October stock markets, where prices rebounded last year after a market crash added substantial uncertainty to the sharp drop in 1986. However, prices also rose prospects for continued economic growth at sharply for some imported consumer goods and, year-end. The sharp drop in stock prices reduced at the producer level, for a number of industrial household wealth considerably, raising the poscommodities. In contrast, wage trends remained sibility of a further slowing in consumer spendrestrained last year, although tightening labor ing, domestic business investment, and housing markets and the faster pace of inflation stemmed construction. It is too early to assess what the the pattern of wage deceleration evident in pre- ultimate economic effect of the stock market vious years. decline will be, but that effect likely will be offset As suggested above, a number of sectors that at least in part by the decline in interest rates since the crash. had been depressed in recent years began to • 'ft •'" show signs of improvement in 1987. The turnaround was most pronounced in manufacturing, The External Sector where production and employment, especially in •• 'Wcapital goods and industrial materials industries, The dollar depreciated by 14 percent in nominal picked up sharply, in response both to stronger terms over the course of 1987 relative to a orders from abroad and to higher levels of capital trade-weighted average of the currencies of the spending by domestic producers. However, im- other G-10 countries, leaving the dollar by the provement also was apparent in the domestic end of the year at a level almost 45 percent below energy sector, where, in response to the partial its February 1985 peak and close to its 1980 low. recovery in oil prices, oil drilling retraced a small Although consumer prices in the United States part of its earlier precipitous decline, and in rose somewhat more rapidly on average than in agriculture, where higher exports and continued major foreign countries, the depreciation of the federal support boosted farm income and helped dollar was almost as great in real terms. Howbring about some firming in land prices. ever, the dollar fell only about 6V2 percent in real In addition, the composition of activity moved terms over the year against an average of eight toward a better balance between domestic spend- leading developing countries. The decline in the ing and domestic production. Weak consumer exchange value of the dollar was resisted by spending reduced the growth of domestic de- substantial official intervention purchases of dolmand in 1987, while domestic production was lars and an apparent movement of differentials in supported by the increased international compet- long-term real interest rates between the United itiveness of U.S. industry as the continued im- States and major foreign countries in favor of the provement in productivity in manufacturing and dollar. Nonetheless, some depreciation in the the moderate pace of increase in labor compen- dollar evidently was seen by participants in forsation permitted U.S. firms to lower the foreign eign exchange markets as a necessary element in currency prices of their goods while expanding the adjustment of the huge U.S. current account profits. Indeed, much of the improvement in deficit. economic conditions last year could be traced to The U.S. merchandise trade deficit widened the effects of this increased competitiveness on for 1987 as a whole, but leveled off on balance in the volume of imports and exports. Neverthe- the latter part of the year. The volume of imports less, the combination of a substantial increase in increased, reflecting a moderate expansion in the value of oil imports and rising prices of both oil and non-oil imports. Moreover, non-oil non-oil imports more than offset an improvement import prices moved up further in response to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 Federal Reserve Bulletin • March 1988 continuing decline in the dollar through 1987, stock market decline returned equity wealth to and, with oil prices also up sharply, imports rose 1986 levels. substantially in value terms. Higher imports were In general, consumers cut back their expendimatched, to a large extent, by merchandise ex- tures for both durable and nondurable goods, ports, which also grew briskly in 1987. Most of while spending on services continued to increase this growth was in real terms, as prices of most at about the pace of recent years. Within the exports increased only moderately in the face of durables category, sales of new cars fell from the substantial decline in the dollar, and prices of IV/z million units in 1986 to about WA million a few important products, such as computers, units last year. Some of that dropoff can be continued to decline. Moreover, the expansion of traced to an especially slow pace of sales in early foreign sales last year was broadly based. Ship- 1987, as consumers shifted automobile purchases ments abroad of capital goods showed particular into 1986 to take advantage first of major sales strength, and the volume of agricultural exports incentives and then of the sales tax deduction also rose, as grain sales to the Soviet Union and available only under the old tax law. Neverthe- China increased and as foreign soybean produc- less, domestic auto sales were relatively sluggish tion dropped off. throughout last year, despite the availability Economic expansion abroad strengthened only much of the time of special incentive programs slightly in 1987, providing only limited support on a wide range of models. > for the improvement in the U.S. trade position. Associated with the more cautious spending In the other industrial countries, economic activ- patterns of consumers in 1987 was a slowing in ity picked up somewhat by the middle of the year household debt accumulation. Consumer installafter a slow start, but on average real GNP grew ment debt decelerated sharply as households less than 3 percent over the year. Outside of the apparently limited their borrowing because of industrial countries, real economic growth was high debt burdens and shifted toward home equneven and on average tended to slow from its uity loans in response to the reduced incentive, pace in 1986. Activity expanded at a rapid rate in under the new tax law, to finance expenditures the newly industrialized countries of Asia, but with nonmortgage credit. And, despite the growslowed in Latin America, with a sharp decline in ing popularity of home equity loans, growth of Brazilian growth more than offsetting a small mortgage debt also slowed last year as interest expansion in Mexico. In the OPEC countries, rates moved higher. Evidence as to the ability of output fell as oil export volumes were con- consumers to service their existing liabilities in strained in an effort to raise oil prices. 1987 was mixed. Delinquency rates for mortgage loans fell somewhat, but delinquency rates for The Household Sector consumer loans changed little over the year while loan charge-ofifs rose. Spending by households, which had been a major Housing activity in 1987 was damped by the contributor to growth in past years, slowed con- upward movement in mortgage rates, continued siderably in 1987. Real consumer spending rose high multifamily vacancy rates, and changes in less than 1 percent last year, after a 4 percent the tax law. Total housing starts were 1.62 milgain in 1986. In large part, the cutback in spend- lion for the year as a whole, about 10 percent ing reflected smaller increases in real disposable below the 1986 total and the lowest in five years. income. Substantial employment growth and in- Single-family homebuilding began the year at a creases in farm and interest income fueled con- brisk pace, but weakened considerably as continued gains in nominal incomes, but a pickup in ventional mortgage interest rates rose beginning consumer price inflation eroded much of that rise in April, reaching about IIV2 percent for fixedand reduced real income growth to about 2 rate loans by mid-October. Although interest percent last year, versus V/i percent in 1986. rates on mortgages have dropped substantially Moreover, although the rise in stock prices since then, the stimulative impact of that change added further to household wealth through Au- on housing demand may have been offset thus far gust and supported consumption, the subsequent by stock market losses and reduced consumer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 157 confidence. In the multifamily market, activity levels at some retailers. In manufacturing, invenalso weakened over the past year, as near record- tories changed little on balance over the first half high vacancy rates on rental units and tax-law of the year, but rose considerably in the second changes that reduced the profitability of rental half as activity picked up. Stockbuilding was housing continued to deter building in that sec- most evident in capital goods industries, where tor. orders and shipments strengthened substantially, as producers added supplies in anticipation of The Business Sector higher production levels. In the retail trade sector, inventories of goods other than automobiles Business spending on plant and equipment rose also rose over the year, pushing the inventoryabout 33/4 percent in real terms in 1987. In large sales ratio to a relatively high level by December. part, investment spending was associated with The accumulation was most pronounced for the overall pickup in economic activity. How- home goods such as furniture and appliances and ever, financial conditions also were conducive to for apparel. At auto dealers, stocks generally spending, with cash flows strong and the costs of rose in 1987, and, at year-end, supplies appeared external capital fairly attractive through much of to be well above desired levels despite the prevthe year. alence of special incentive programs and produc- For equipment, the year began on the weak tion cutbacks late in the year. side, with first-quarter spending down sharply Before-tax profits of nonfinancial corporations after firms shifted expenditures into late 1986 to increased substantially last year. Profits were take advantage of the favorable treatment of especially strong in manufacturing, where the investment under the depreciation provisions of volume of shipments picked up and firming the old tax law. However, investment in equip- prices and good cost control contributed to imment rebounded sharply in the second and third proved margins. In other industries, before-tax quarters of last year. Much of the strength was in profits were little changed from 1986 levels. the computer and other office equipment area, However, after-tax profits fell a bit on an annual where expenditures picked up in 1987 after es- average basis last year for the sector as a whole, sentially no growth in 1986. In contrast, spending as increases in corporate tax liabilities associated on industrial equipment was not especially brisk with the new tax laws more than offset the despite the strong gains in manufacturing produc- overall rise in profits. tion. 'Mi'-- •••• 1 - Outlays for nonresidential structures also The Government Sector turned up last year after a sharp drop in 1986. Much of the turnaround in spending reflected an Last year, there was significant progress toward improvement in the energy sector in response to reducing federal budget deficits. The FY 1987 higher oil prices. In particular, oil and gas drilling deficit, at $150 billion, was about a third lower was up more than 20 percent over the year after than the record level of the previous year, and having dropped by 40 percent in 1986. Outside of the administration and Congress reached agreethe energy area, spending on structures was flat, ment on deficit reduction actions totaling more after falling nearly 9 percent in 1986. Producers than $30 billion in FY 1988 and about $46 billion were somewhat less reluctant to expand indus- in FY1989. However, a number of factors that trial plant facilities owing to the substantial rise raised receipts and lowered outlays in FY 1987 in industrial production, while office construc- are not likely to be repeated, and—absent further tion, although down a bit last year, held up legislative action—deficits could expand again surprisingly well in view of the very high vacancy unless there are particularly favorable economic rates that have persisted in recent years. circumstances. Business inventory investment generally About half the deficit reduction could be traced moved in line with sales over most of 1987, but a to these one-time factors, as tax-reform effects sharp accumulation of stocks in the fourth quar- boosted revenues, and asset sales and changes in ter suggested the possibility of excess inventory the timing of certain payments reduced outlays. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 Federal Reserve Bulletin • March 1988 The remainder of the reduction in the deficit lowest level since 1979. The jobless rate for adult reflected strong revenue growth and a very small men moved down to about 4!/2 percent by the end underlying rise in outlays. The economic expan- of last year, reflecting strong growth in the indussion boosted receipts, while, on the outlay side, trial sector. The rate for adult women fell to lower interest rates in FY 1987 offset some of the around 43A percent early in the year, but changed increase in interest payments associated with the little in the second half. rise in the size of the national debt. In addition, As the unemployment rate dropped sharply, the improvement in the farm sector reduced wage increases, which had been decelerating for agricultural support payments, and lower infla- several years, leveled out; however, they tion in 1986 held down cost-of-living adjustments showed little signs of acceleration last year. for many entitlements. Spending restraint also Hourly compensation, as measured by the emhad a noticeable effect: the rise in military spend- ployment cost index, advanced 3lA percent in the ing slowed, and cuts in discretionary programs 12 months ended December, about the same pace reduced outlays for education, energy, and inter- as in 1986. The moderate rise in compensation, governmental assistance. which was fairly widespread across industries The state and local sector recorded a sizable and occupations, occurred despite a substantial deficit in its operating and capital accounts pickup in consumer price inflation. As a result, (which exclude social insurance funds), as ex- real hourly compensation fell last year and has penditures expanded more rapidly than receipts. averaged only about a Vz percent increase annu- Many states took action in early 1987 to deal with ally since 1984. eroding fiscal positions. About half of the states Unit labor costs in the nonfarm business sector cut their budgets last year and two-thirds raised rose only VA percent last year, after a 2 percent taxes, with many of the budget adjustments in increase in 1986. The continued restraint in labor energy and farm states. However, pressing needs costs primarily reflected moderate compensation to expand and upgrade schools, highways, and growth, as productivity gains for the sector as a correctional institutions continue to squeeze whole have improved little from the sluggish many state and local budgets. pace of the 1970s. In contrast, manufacturers apparently have made significant progress in Labor Markets increasing efficiency and streamlining operations, and output per hour in this sector rose Employment increased 3 million over the 12 nearly VA percent in 1987. This advance in months of 1987, as the pickup in economic activ- manufacturing productivity, coupled with continity led employers to add workers at a brisk pace. ued slow growth in manufacturing wages, contin- In contrast to prior years, when the labor market ued to put downward pressure on factory unit was characterized by sharp disparities across labor costs last year. sectors, the strengthening in hiring in 1987 was widespread by industry. In manufacturing, em- Price Developments ployment edged up over the first half of the year and then rose substantially in the second half in Inflation rebounded in 1987, largely reflecting response to the sharp gains in industrial produc- higher energy prices and continued price hikes tion. Moreover, the expansion of jobs in the for imported goods. The fixed-weighted price trade, service, and finance industries remained index for GNP increased about 4 percent for the sizable during most of 1987, although hiring in year as a whole, after a 2XA percent rise in 1986. trade and finance apparently slowed somewhat in The consumer price and producer price indexes the latter part of the year in the wake of sluggish suggested an even sharper acceleration in prices consumer spending and the stock market crash. over 1987, owing to the greater importance of The demand for labor considerably outpaced energy in those indexes. The consumer price increases in labor supply, and the civilian unem- index was up AVi percent in the 12 months ended ployment rate dropped nearly 1 percentage point December, after a 1 percent rise in 1986, while over the year to 53A percent at year-end—the the producer price index, which includes only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 159 prices of domestically produced goods, rose 2lA portant influence on commodity markets. In the percent over the year, after dropping 2XA percent agricultural sector, grain prices fell early in 1987 in 1986. as farmers sold large amounts of grain received The overall rise in energy prices in 1987 re- through government programs, but rebounded in flected both a sharp rebound in prices early last the latter part of the year as exports picked up in year and an additional runup in prices around response to the falling dollar. midyear. Spot prices for West Texas Intermediate crude oil (the benchmark crude oil in the United States) rose $3 per barrel in January of last year to about $18.50 per barrel in response to MONETAR Y POLIC Y AND lower OPEC production levels. Tensions in the FINANCIAL MARKETS IN 1987 Persian Gulf boosted prices further during the summer to a high of around $20 per barrel in In 1987, the Federal Reserve continued to face early August. Precautionary stockbuilding during the difficult task of charting policy in an environthis period, coupled with higher levels of produc- ment in which considerable uncertainties tion by OPEC and the absence of any major clouded the relationship between the behavior of disturbance in the Gulf, subsequently helped put the monetary aggregates and the performance of downward pressure on crude oil prices, and oil the economy. As a result, while the Federal prices since late last summer have retreated to Open Market Committee set targets for some of about $17 per barrel. Retail prices for gasoline the monetary aggregates, it was deemed necesand home heating oil closely followed move- sary to maintain a flexible approach in conductments in crude oil prices, rising around 20 per- ing its operations, looking at a broad range of cent through August and then falling somewhat information in judging when or if to adjust its in the latter part of the year. In contrast, prices basic instruments—reserve availability and the for natural gas and electricity were down or little discount rate—in response to deviations in monchanged last year, reflecting a further adjustment etary growth from expected rates. Such factors to the net decline in oil prices since 1985. as the pace of business expansion, the strength of Outside of the energy area, price increases for inflation and inflation expectations, and developgoods picked up last year, while prices for non- ments in exchange markets played a major role in energy services rose about AVi percent, a bit less governing the System's actions, and in light of than in 1986. A jump in used car prices accounted the behavior of these other factors, growth in the for much of the acceleration in goods prices, but targeted aggregates, M2 and M3, was permitted further increases in import prices associated with to run at or below the established ranges. the falling exchange value of the dollar also were During episodes beginning in the spring and evident in 1987. As a result, retail prices for then again in late summer, the dollar came under many items with high import proportions, such sustained downward pressure and inflationary as women's and girls' apparel, photographic expectations appeared to be on the rise, partially equipment, and toys and music equipment, in response to the dollar's weak performance. posted notable increases last year. With the economy expanding at rates sufficient to Prices for many industrial commodities also produce rising rates of resource utilization, the rose considerably over the course of 1987. In FOMC sought some firming of pressures on addition to the increase in crude oil prices, reserve positions and increased the discount rate copper prices more than doubled last year, and in September. When stock prices collapsed in steel scrap prices were up 36 percent by year- mid-October, the resulting turmoil required that end. To some extent, the sharp rise in commod- the focus of policy be on ensuring the liquidity of ity prices reflects the influence of dollar depreci- the financial system. Over the remainder of the ation on markets for internationally traded year, emphasis in the conduct of open market goods. However, temporary supply shortages for operations shifted toward maintenance of steady some industrial metals and the firming in U.S. and somewhat easier money market conditions industrial activity undoubtedly also had an im- to promote a return of stability to financial mar- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 Federal Reserve Bulletin • March 1988 kets generally and to cushion the effects of the small time deposits from the more liquid retail stock market decline on the economy. instruments. M3 was stronger than M2 over the year, expanding 5Vi percent and ending the year at the Behavior of Money and Credit bottom of its 5!/2 to 8V2 percent annual growth range. Its faster growth reflected heavy reliance M2 increased only 4 percent in 1987, well below by depository institutions on large time deposits both the lower bound of its 5Vi to 8!/2 percent and on certain other instruments included in M3 annual growth range and its more than 9 percent but not in M2. Both commercial banks and thrift rate of expansion over the preceding two years. institutions stepped up their issuance of whole- The velocity of this aggregate picked up substan- sale managed liabilities to fund more asset tially, reversing a portion of the sharp decline growth than could be accommodated by greatly that occurred in 1985-86. The rise in velocity reduced inflows of core deposits. Even so, M3 may have reflected in part a number of special growth was subdued relative to prior years, factors affecting the public's demand for M2 reflecting in part reduced overall needs for funds balances in 1987, including a much-reduced rate as asset expansion at banks and thrifts slowed. In of saving out of income and a preference for addition, banks relied heavily on managed liabildrawing upon liquid assets—rather than using ities obtained from non-M3 sources, especially consumer credit—to finance purchases, the latter funds borrowed from their foreign branches. in the wake of tax reform measures reducing Growth of Ml slowed to 6lA percent from the deductibility of nonmortgage interest payments. very rapid 15!/2 percent increase posted the pre- However, much of the pickup in velocity appears vious year, owing to a small decline in demand attributable to increases in the competing returns deposits and a sharply lower expansion of other on other assets, which raised the opportunity checkable deposits. The velocity of Ml increased costs associated with holding M2 balances. slightly, after a record postwar decline a year The widening gap between market rates and earlier. The sharp slowing of growth and the offering rates was most pronounced for the more abrupt turnabout in its velocity are indicative of liquid retail deposits, where rates are changed the increased sensitivity to movements in market very infrequently. Early in the year, opportunity interest rates that has emerged for Ml in recent costs on these accounts were still low and inflows years. As suggested by its comparatively larger were large. As market rates rose, though, yields deceleration in 1987, Ml now appears to have a on these accounts became increasingly less at- greater sensitivity to changes in interest rates tractive and growth slowed; by late in the year, than the broader aggregates. there were net monthly outflows from both sav- In large measure, the greater sensitivity of Ml ings and NOW accounts. Also, money market reflects the increasing share of other checkable depdsit accounts declined, for the first year since deposits. Because NOW accounts pay explicit this component of M2 was introduced in late interest, they serve as an attractive savings ve- 1982. Expansion of money market mutual funds hicle as well as a transactions account. The was sluggish. available information suggests that owners of In contrast to the very liquid retail deposits, NOW accounts are quite sensitive to changes in small time deposits expanded in 1987, after two opportunity costs, shifting savings balances beyears of zero or negative growth. Depository tween these accounts and other, less liquid retail institutions tend to keep the offering rates on deposits. At the beginning of 1987, market interthese deposits fairly well in line with market est rates were very close to NOW account rates, alternatives of about the same maturity. With and with the opportunity cost so low, depositors intermediate-term rates rising more than short apparently placed unusually large amounts of rates in 1987, the spread between yields on small interest-sensitive funds in these accounts; as time instruments and those on more liquid retail market rates rose during 1987, these funds eviaccounts widened considerably, providing de- dently were shifted out of NOW accounts in positors with an incentive to shift funds into search of higher yields. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 161 3. Growth of money and debt1 Percentage changes at annual rates Debt of domestic Period Ml M2 M3 nonfinancial sectors Fourth quarter to fourth quarter 1979 7.7 8.2 10.4 12.3 1980 7.5 8.9 9.5 9.6 1981 5.2 (2.5)2 9.3 12.3 10.0 1982 8.7 9.1 9.9 8.9 1983 10.2 12.1 9.8 11.3 1984 5.3 7.6 10.4 14.2 1985 12.0 (12.9)3 8.9 7.7 13.3 1986 15.6 9.4 9.1 13.2 1987 6.2 4.0 5.4 9.6 Quarterly growth 1987: 1 13.2 6.5 6.5 10.5 2 6.6 2.6 4.7 8.7 3 .8 2.8 4.5 8.1 4 3.9 4.0 5.6 9.7 1. Ml, M2, and M3 incorporate effects of benchmark and sea- 2. Ml figure in parentheses is adjusted for shift to NOW accounts in sonal adjustment revisions made in February 1988. Certain tech- 1981 • fi'*-iH«- • • . <. • -ilf y-,. -tine,nical redefinitions affecting only Ml were made at the same 3. Ml figure in parentheses is the annualized growth rate from the time. second to the fourth quarter of 1985. The abrupt weakening of demand deposits quarter, but Ml was most noticeably affected. after two years of rapid expansion suggests that Demand deposits rose sharply around the time of this component of Ml also is sensitive to interest the crash, reflecting the increased volume of rates. Higher market interest rates obviously financial transactions arising from the surge in provide incentives to economize on balances that trading activity. Other checkable deposits also earn no interest. Higher rates also permit busi- registered sizable inflows, as some funds withness firms to reduce the amount of balances held drawn from the stock market probably were with banks as compensation for services pro- placed initially in these accounts. Outside of Ml, vided but not paid for with fees; because banks sizable amounts of funds were transferred from can earn greater returns by investing these funds equity mutual funds into money market mutual when rates are higher, they reduce the balance funds, which are included in M2. The boost to requirements commensurately. Substantial the aggregates was concentrated in late October amounts of demand deposits are held under and proved temporary, with deposits receding compensating balance arrangements, which over the month of November. helps to explain a high interest elasticity for The debt of domestic nonfinancial sectors grew demand deposits. Over time, though, there has 9Vi percent last year, ending the year at the been a gradual movement toward the substitution middle of the Committee's monitoring range of 8 of explicit fees for compensating balances, and to 11 percent. Debt expansion moderated considsome reports indicate that such shifts may have erably from the 1314 pace of the two previous accelerated in late 1987, thereby contributing to years, but still rose faster than income. Federal the steep declines in demand deposits near year- debt growth slowed in 1987, as some progress end. Higher mortgage rates also may have con- was made in reducing the federal deficit. Borrowtributed to weakness in demand deposits in 1987 ing by state and local governments fell substanby slowing the pace of mortgage refinancing—an tially, Jlartly reflecting the damping effect of i&fivity that lend& to boost demand depots higher borrowing costs and the availability of temporarily because the amount being prepaid on unspent funds from earlier financings. In the an old mortgage often is placed in escrow for a household sector, overall growth of indebtedness time in a demand deposit account. slowed. Sluggish spending and shifts toward greater reliance on home equity lines of credit, in The collapse of equity prices boosted the avresponse to the effects of tax reform in reducing erage level of all the aggregates a bit in the fourth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin • March 1988 deductibility of interest payments on consumer rates of interest fostered in part by the Federal debt, held down use of consumer credit. How- Reserve's response to adverse developments ever, a brisk pace of home sales over most of the with respect to the dollar and inflation. The year helped sustain the growth of mortgage debt Committee decided to reaffirm its 1987 growth at about the elevated pace of 1986. Despite some ~ ranges for M2 and M3; in doing so, it anticipated widening last year of the gap between internally some pickup in the growth of M2 over the generated funds and capital expenditures, busi- remainder of the year, but it indicated that ness borrowing diminished in both short- and growth for all of 1987 near or even below the long-term markets. However, businesses contin- bottom of the target ranges might be acceptable ued to retire equity last year through mergers, for both aggregates, depending on the behavior buyouts, and share repurchases, and the credit of their velocities and other financial and econeeded to finance these retirements boosted the nomic developments, notably the evolving expansion of business indebtedness. strength of inflationary pressures. The Committee also decided not to set a target range for Ml, Implementation of Monetary Policy given the unpredictability of the behavior of this aggregate relative to economic activity. During the first half of 1987, monetary policy was For a short time after the July meeting, the carried out in an atmosphere of increasing con- dollar rose further but, with the release of trade cerns about the course of inflation, arising in part data in mid-August that disappointed market from heavy downward pressure on the dollar. participants, the dollar again came under sub- Growth of the economy was bringing about no- stantial downward pressure. Long-term bond ticeable increases in resource utilization, and yields moved up sharply, as the dollar's weakinflation was picking up, reflecting the effect of a ness against a backdrop of strength in the econweaker dollar on import prices as well as a omy spurred concerns about inflation and possirebound of oil prices from low 1986 levels. When ble firming of monetary policy. Interest rates in the dollar came under heavy pressure in late short-term markets also increased, but by lesser March, previously tranquil credit markets began amounts. In light of the potential for greater to exhibit concern about the effect that declines inflationary pressures, in part related to weakof the dollar would have on prices. Long-term ness in the dollar, the Federal Reserve sought to interest rates, in particular, moved up strongly. reduce marginally the availability of reserves In conjunction with some easing moves abroad, through open market operations; it also raised its the Federal Reserve sought somewhat greater discount rate Vi percentage point in early Seprestraint in the provision of reserves to the tember to 6 percent. After the discount rate banking system. Initially, this action produced action, interest rates rose further, especially in further increases in interest rates, but subse- short-term markets. quently, financial pressures eased somewhat. In Stock prices, which had reached very high response to reductions in interest rates abroad, levels relative to earnings and had been falling to some flattening in commodity prices, and to since mid-August, plunged on October 19 in better news on the U.S. trade deficit, the dollar chaotic trading. The stock market drop prompted firmed and there was a broad decline in interest a marked decline in interest rates as investors rates, with long-term rates falling somewhat sought refuge in the perceived safety of fixedmore than short-term rates. income assets, especially Treasury securities. When the FOMC met in July to review its Although most stock indexes recovered somegrowth ranges for money and credit, all of the what in the wake of the crash, financial markets monetary aggregates had decelerated consider- remained turbulent, with bond and equity prices ably. The weakness in monetary growth did not fluctuating widely. reflect any evident weakness in the economy, In a financial environment of extraordinary however; rather, the slower money growth, and turmoil and apparent fragility, the Federal Reaccompanying strengthening in velocity, ap- serve shifted the emphasis in the conduct of open peared largely attributable to the rise in market market transactions to providing reserves gener- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 163 ously to ensure that adequate liquidity would be the new tax code and weaker consumer spendavailable to meet any unusual needs. Nonbor- ing. However, the growth of household debt still rowed reserves grew rapidly in late October to outstripped that of disposable income, and the accommodate both a large increase in reserves ratio of debt to income reached new highs. For required against surging transactions deposits some individuals, the strains posed by high debt and an enlarged demand for excess reserves. An burdens apparently remain quite severe, as the easing of pressures on reserve positions also took number of personal bankruptcies has been growplace, which, along with some diminution of ing rapidly over the last three years and setting inflation expectations, led to a partial reversal of new records. On the other hand, recent declines earlier increases in interest rates. These actions in the delinquency rate on mortgage debt have helped to calm the financial markets, although brought this indicator of financial stress more conditions remained somewhat unsettled over into line with historical standards. the rest of the year. The banking industry was under some continu- Early in 1988, as incoming data suggested that ing stress in 1987, primarily reflecting well-pubeconomic expansion over the first part of the licized difficulties with energy and developing year might be weak, bond rates dropped substan- country loans, but in some parts of the country tially and the Federal Reserve sought some slight with agricultural and real estate loans as well. additional easing in desired pressures on reserve Although most banks continue to be healthy and positions. Better trade news bolstered confi- enjoy reasonable profits, souring energy and agdence in the dollar, and the monetary aggregates ricultural loans in recent years have led to record showed signs of renewed strength. numbers of bank closings, principally of smaller banks in the midwestern and southwestern por- Other Developments in Financial Markets tions of the country; however, problems with the quality of agricultural loans appear to be dimin- Despite the slower growth of debt and the overall ishing as the agricultural sector shows signs of strength of the economy last year, there still were improvement. some signs of strain and financial fragility in Provisioning by large banks for losses on trouportions of the economy. bled loan portfolios led to record losses in 1987 The nonfinancial corporate sector remained for the banking industry and to substantial dehighly leveraged and thus potentially vulnerable clines in the book value of shareholder equity of to adverse changes in the economic and financial affected banks. Doubts regarding the ultimate environment. A combination of strong debt issu- collectibility of loans to some heavily indebted ance and massive net equity retirements boosted developing countries weighed down the stock the aggregate debt-equity ratio of these corpora- prices of many large banks in 1987, but investor tions, measured at market values at year-end, reaction to the second-quarter decision to make after a two-year decline resulting from increases provisions for substantial losses was generally in stock prices. Moreover, higher interest rates positive, and at the time share prices rose for along with additional debt boosted borrowing many banks taking this step. Difficulties percosts, keeping the net interest-coverage ratio at sisted over the year in making progress in hanabout the very low levels recorded during the last dling the economic and financial problems of recession. Reflecting the weakening of the fi- many of the developing countries, and in the nances of some corporations, the pace of down- fourth quarter a number of large banks angradings of corporate debt remained very high in nounced additional provisioning for losses on 1987, and a record $9 billion of rated corporate such debt and, in some instances, write-offs of bonds were placed in default. problem loans. The household sector also exhibited a few After several years of improvement, the finansigns of strain on personal finances. As noted cial condition of the thrift industry deteriorated previously, the pace of expansion of total house- in 1987. Aggregate earnings declined, with losses hold debt slowed last year, likely reflecting re- posted in the second and third quarters as a result duced deductibility of consumer interest under of heavy provisions for losses on assets, includ- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • March 1988 ing a one-time write-off of accumulated insurance take effective remedial action with respect to payments prepaid to the Federal Savings and these insolvent institutions, owing to the inade- Loan Insurance Corporation (FSLIC).3 How- quacy of its resources. Under the terms of the ever, as has been true for some years now, the recapitalization plan approved as part of the aggregate condition of the industry masked ex- Competitive Banking Equality Act, the newly tremes among individual thrifts. Many thrifts are created Financing Corporation has begun raising well capitalized and quite profitable, but severe the funds needed by the FSLIC through issuance problems with asset quality have left a substan- of long-term debt. tial minority insolvent and suffering massive op- The stock market collapse gave very clear erating losses that are steadily worsening. Prior warning of the vulnerability of important eleto the passage in 1987 of legislation authorizing a ments of the financial system to sudden shocks. recapitalization, the FSLIC had been unable to Although only a few small securities firms failed, the market turbulence produced significant problems for traders, specialists, and market makers on the stock exchanges; and, more generally, 3. In March 1987, the General Accounting Office declared financial markets gave evidence of fragility and the FSLIC was insolvent because it would be unable to meet instability that have not entirely disappeared all its future obligations on insured deposits at failed but not yet closed institutions. The Financial Accounting Standards even yet. Under the circumstances, it is essential Board then ruled that the prepaid assessments, which were that the reexamination of our market mechaassets on the balance sheets of individual thrift institutions, nisms and regulatory systems go forward, to had to be written off immediately. The FSLIC recapitalization plan included in the Competitive Equality Banking Act of identify any actions that might be needed to 1987 provides that the affected thrifts will recover the amount safeguard the strength of our capital markets and of this write-off over the next five years as new funds are lower the risks of economic disruption. raised for FSLIC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

165 Industrial Production Released for publication January 15 1977 average, industrial production in December was more than 5 percent higher than it was a year Industrial production rose 0.2 percent in Decem- earlier, and the fourth-quarter level of output was ber after having increased 0.4 percent in Novem- 1.5 percent greater than that of the third quarter ber and 1.1 percent in October. During the past (not at an annual rate). Last year, the growth in two months, total output was boosted by contin- average annual output was well above the slow ued gains in materials and in supplies for both pace of the two previous years: 3.8 percent in construction and business; but, at the same time, 1987, compared with 1.1 percent in 1986 and 1.9 production of automotive products and business percent in 1985. equipment weakened. At 133.3 percent of the In market groups, production of consumer Ratio scale, 1977 = 100 1981 1983 1985 1987 1981 1983 1985 1987 All series are seasonally adjusted. Latest figures: December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • March 1988 1977 = 100 Percentage change from preceding month Percentage cchhaannggee,, Group 1987 1987 DDeecc.. 11998866 ttoo DDeecc.. 11998877 Nov. Dec. Aug. Sept. Oct. Nov. Dec. Major market groups Total industrial production 133.1 133.3 .5 -.2 1.1 .4 .2 5.2 Products, total 141.2 141.3 .3 -.4 1.1 .1 .1 4.5 Final products 139.5 139.4 .4 -.4 1.2 .0 -.1 4.0 Consumer goods 129.5 129.7 .4 -1.3 1.2 .2 .1 2.4 Durable 124.5 123.1 .7 -2.2 4.9 .0 -1.1 3.1 Nondurable 131.4 132.1 .3 -1.1 .0 .3 .5 2.2 Business equipment... 148.7 148.2 .1 .4 1.7 .0 -.3 6.2 Defense and space 190.0 191.1 .2 .4 .2 -.1 .6 2.6 Intermediate products... 146.9 147.5 .2 -.3 .8 .6 .5 6.0 Construction supplies. 134.0 134.5 -.5 -.2 .6 .7 .4 4.6 Materials 122.0 122.5 .7 .2 1.2 .8 .4 6.3 Major industry groups Manufacturing 138.0 138.3 .2 -.1 1.2 .5 .2 5.3 Durable 137.0 136.8 .2 -.1 2.2 .2 -.1 5.5 Nondurable 139.5 140.3 .2 -.1 -.2 .9 .6 5.1 Mining 103.0 103.3 1.7 1.0 1.2 -.1 .2 6.4 Utilities 112.9 112.4 1.6 -1.4 .8 .7 -.4 3.1 NOTE. Indexes are seasonally adjusted. goods was, on balance, little changed again in equipment, which rose sharply between May and December. Declines in assemblies of autos and October, was unchanged in November and fell light trucks were offset by continued and wide- slightly in December. This decline mainly respread increases in home goods, particularly flected weakness in commercial equipment, parappliances, and in nondurable consumer goods. ticularly computers, and in transit equipment; Auto assemblies in December were at a 6.5 but manufacturing equipment also grew more million unit annual rate, about 9 percent below slowly in December. Total materials output rose the November level. Production of business 0.4 percent in December, outpacing the growth rate in total products for the fifth successive month. Among durable materials, production of equipment parts and basic metals other than steel Total industrial production—Revisions continued to advance. Gains in nondurables were Estimates as shown last month and current estimates led by further increases in the output of paper Percentage change and chemical materials. Index (1977=100) from previous MMoonntthh months In industry groups, output of manufacturing rose 0.2 percent in December as a result of Previous Current Previous Current continued strength in nondurables; production of September 130.9 131.0 -.3 -.2 durables edged down. Output of mining was October 132.0 132.5 .9 1.1 about unchanged again, and production by utili- November 132.5 133.1 .4 .4 December 133.3 .2 ties declined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

167 Announcements STATEMENT BY CHAIRMAN GREENSPAN The five new members, named to two-year REGARDING TASK FORCE terms that began January 1, are the following: ON MARKET MECHANISMS Robert S. Duncan, Chairman, President, and Chief Executive Officer, Magnolia Federal Bank Chairman Alan Greenspan of the Federal Re- for Savings, Hattiesburg, Mississippi; Joe C. serve Board issued the following statement on Morris, Chairman of the Board, Columbia Sav- January 8, 1988: ings Association, Emporia, Kansas; Joseph W. Mosmiller, Chairman and Chief Executive Of- The Task Force on Market Mechanisms is to be ficer, Loyola Federal Savings and Loan Associcommended for its report on the stock market collapse ation, Baltimore, Maryland; Louis H. Pepper, of October 19, 1987. I find it extraordinary that the Chairman and Chief Executive Officer, Washing- Task Force was able to do so much, and obtain such ton Mutual Savings Bank, Seattle, Washington; vast amounts of previously unavailable data, in such a and Donald B. Shackelford, Chairman of the short period of time. I've been told that the report provides a number of new insights and suggestions Board, State Savings Bank, Columbus, Ohio. designed to prevent a recurrence of the events that The other members of the Council are the transpired in October. I look forward to reading it in following: Betty Gregg, President and Chief Exdetail. ecutive Officer, Desert Schools Federal Credit Union, Phoenix, Arizona; Thomas A. Kinst, APPOINTMENT OF NEW MEMBERS TO THE President and Chief Executive Officer, Land of THRIFT INSTITUTIONS ADVISORY COUNCIL Lincoln Savings & Loan, Hoffman Estates, Illinois; Ray Martin, Chairman and Chief Executive The Federal Reserve Board announced on Janu- Officer, Coast Savings & Loan Association, Los ary 12, 1988, the names of five new members to Angeles, California; Janet M. Pavliska, President its Thrift Institutions Advisory Council (TIAC) and Chief Executive Officer, Bank Five for Savto replace those members whose terms have ings, Arlington, Massachusetts; and William G. expired and designated a new president and vice Schuett, President and Chief Executive Officer, president of the council for 1988. Security Savings and Loan Association, Milwau- The council is an advisory group comprised of kee, Wisconsin. 12 representatives from thrift institutions. The panel was established by the Board in 1980 and includes representatives from savings and loan PRELIMINARY FIGURES RELEASED ON institutions, savings banks, and credit unions. INCOME OF FEDERAL RESERVE BANKS The council meets at least four times each year with the Board of Governors to discuss develop- Preliminary figures released on January 11, 1988, ments relating to thrift institutions, the housing indicate that operating income of the Federal industry, mortgage finance, and certain regula- Reserve Banks amounted to $17,633 billion durtory issues. ing 1987. Net income before dividends, additions Jamie J. Jackson, President of Commonwealth to surplus, and payments to the Treasury totaled Financial Group, Houston, Texas, was desig- $18,032 billion. Net income exceeded operating nated president of the council and Gerald M. income because of gains on the sale of and an Czarnecki, Chairman of the Board and Chief increase in the value of assets denominated in Executive Officer of HONFED, Honolulu, Ha- foreign currencies that were adjusted to market waii, was designated vice president. exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Federal Reserve Bulletin • March 1988 About $17.7 billion was paid to the U.S. Trea- The list includes all OTC securities designated sury during 1987. by the Board pursuant to its established criteria Income from the Federal Reserve System is as well as all stocks designated as NMS securiderived primarily from interest accrued on U.S. ties for which transaction reports are required government securities that the Federal Reserve pursuant to an effective transaction reporting has acquired through open market operations. plan. Additional OTC securities may be desig- Income from the provision of financial services nated as NMS securities in the interim between amounted to $645 million. the Board's quarterly publications and will be Operating expenses of the 12 Reserve Banks immediately marginable. The next publication of and their branches totaled $1,147 billion, includ- the Board's list is scheduled for May 1988. ing $114 million for earnings credits granted to Besides NMS-designated securities, the Board depository institutions. Assessments by the will continue to monitor the market activity of Board of Governors for Board expenditures to- other OTC stocks to determine which stocks taled $82 million and the cost of currency meet the requirements for inclusion and continamounted to $171 million. ued inclusion on the list. Net additions to income amounted to $1,798 billion, primarily resulting from gains on assets denominated in foreign currencies. Statutory dividends to member banks were $117 million; ad- CHANGES IN BOARD STAFF ditions to Reserve Bank surplus were $174 million; and payments to the Treasury were $17,740 The Board of Governors announced the followbillion. ing changes in the Division of Personnel, effec- Under the policy established by the Board of tive February 1,1988, including the change of the Governors at the end of 1964, all net income after division's name to the Division of Human Rethe statutory dividend to member banks and the sources Management: amount necessary to equate surplus to paid-in The appointment of Anthony V. DiGioia as capital is transferred to the U.S. Treasury as Assistant Director, with managerial responsibilinterest on Federal Reserve notes. ity for Board Human Resources: Benefits, Training, and Health Services. The appointment of Joseph H. Hayes, Jr. as Assistant Director, with managerial responsibil- REVISED LIST OF OTC STOCKS SUBJECT TO ity for Reserve Bank Human Resources. MARGIN REGULATIONS NOW AVAILABLE The appointment of Fred Horowitz as Assistant Director, with managerial responsibility for The Federal Reserve Board published on Janu- Board Human Resources: Recruitment, Comary 22, 1988, a revised list of over-the-counter pensation, and Employee Relations. (OTC) stocks that are subject to its margin reg- The promotion of John R. Weis from Assistant ulations, effective February 8, 1988. Director to Associate Director, with responsibil- This List of Marginable OTC Stocks super- ity for general oversight of the Board human sedes the revised list that was effective on No- resources function and special projects. vember 10, 1987. Changes that have been made in the list, which now includes 3,283 OTC stocks, Mr. DiGioia joined the Board's staff in April are as follows: 54 stocks have been included for 1979 as Manager, Resource Development and the first time, 47 under National Market System has rotated through several functions in the divi- (NMS) designation; 37 stocks previously on the sion. He holds a masters degree in philosophy list have been removed for substantially failing to and psychology from St. Stephen's college. meet the requirements for continued listing; 63 Mr. Hayes joined the Board's staff in March stocks have been removed for reasons such as 1985 as a Senior Personnel Analyst. He holds listing on a national securities exchange or in- bachelors degrees in liberal arts and industrial volvement in an acquisition. engineering from the University of Pittsburgh. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 169 Mr. Horowitz joined the Board's staff in April SYSTEM MEMBERSHIP: ADMISSION OF 1977 as Manager, Wage and Salary Administra- STATE BANKS tion and has since held several managerial positions within the division. He received his under- The following state bank was admitted to memgraduate degree from the University of Maryland bership in the Federal Reserve System during the and has done graduate work at George Washing- period January 1 through January 31, 1988: ton University. Florida Clearwater Countryside Bankers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

171 Legal Developments ORDERS ISSUED UNDER BANK HOLDING Accordingly, consummation of the proposal is not COMPANY ACT likely to result in the elimination of any significant existing competition. In view of the numerous entrants Orders Issued Under Section 3 of the Bank into the market, the Board concludes that the proposal Holding Company Act would not have any significant adverse effect on probable future competition. Affiliated Bank Corporation of Wyoming In evaluating this application, the Board has consid- Casper, Wyoming ered the financial resources of Affiliated and the effect on these resources of the proposed acquisition. The Order Approving Acquisition of a Bank Board has stated and continues to believe that capital adequacy is an important factor in the analysis of bank Affiliated Bank Corporation of Wyoming, Casper, holding company proposals. In this regard, the Board Wyoming ("Affiliated"), a bank holding company notes that Affiliated will not incur any debt in connecwithin the meaning of the Bank Holding Company Act tion with this proposal and will increase its capital as a ("Act"), 12 U.S.C. § 1841 et seq., has applied for the result of the issuance of additional common stock. Board's approval, pursuant to section 3(a)(3) of the Accordingly, the Board concludes that financial and Act, to acquire all of the voting shares of First Na- managerial resources of Affiliated and Lovell Bank are tional Bank of Lovell, Lovell, Wyoming ("Lovell"). consistent with approval. Considerations relating to Notice of the application, affording interested per- the convenience and needs of the communities to be sons an opportunity to submit comments, has been served also are consistent with approval. duly published (52 Federal Register 38,814 (1987)). Based on the foregoing and other facts of record, the The time for filing comments has expired, and the Board has determined that the application should be Board has considered the application and all com- and hereby is approved. The transaction shall not be ments received in light of the factors set forth in consummated before the thirtieth calendar day followsection 3(c) of the Act. ing the effective date of this Order, or later than three Affiliated, with deposits of $402.8 million,1 is the months after the effective date of this Order, unless third largest commercial banking organization in Wy- such period is extended for good cause by the Board or oming, controlling 10.3 percent of the total deposits in by the Federal Reserve Bank of Kansas City pursuant commercial banking organizations in the state. Lovell to delegated authority. Bank is the 26th largest commercial banking organiza- By order of the Board of Governors, effective tion in Wyoming, with deposits of $37.3 million, rep- January 20, 1988. resenting 1.0 percent of the total deposits in commercial banking organizations in the state. Upon Voting for this action: Chairman Greenspan and Governors consummation of this proposal, Affiliated will become Johnson, Seger, Angell, Heller, and Kelley. the second largest commercial banking organization in Wyoming and control deposits of $440.1 million, rep- JAMES MCAFEE resenting 11.3 percent of the total deposits in commer- Associate Secretary of the Board cial banking organizations in the state. Consummation of this proposal would not have any significant adverse BOL Bancshares, Inc. effect upon the concentration of banking resources in New Orleans, Louisiana Wyoming. Lovell Bank operates in the Park County banking market,2 a market in which Affiliated does not operate. Order Approving Formation of a Bank Holding Company 1. All banking data are as of December 31, 1986. BOL Bancshares, Inc., New Orleans, Louisiana 2. The Park County banking market is approximated by Park County, Wyoming plus Lovell in Big Horn County, Wyoming. ("BOL"), has applied for the Board's approval pur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Federal Reserve Bulletin • March 1988 suant to section 3(a)(1) of the Bank Holding Company that the Board would closely examine the condition of Act of 1956, as amended (12 U.S.C. § 1842(a)(1) an applicant in each case with this consideration in ("Act")), to become a bank holding company by mind. Although BOL will incur debt in connection acquiring Bank of Louisiana in New Orleans, New with this proposal, it appears that BOL will be able to Orleans, Louisiana ("New Orleans Bank"), and Fidel- service its debt, particularly in light of the commitity Bank and Trust Company, Slidell, Louisiana ments made by BOL and the conversion of previously ("FBT") (collectively "Banks"), and by merging with accrued debt into common stock. In light of the above, BOS Bancshares, Inc., Metairie, Louisiana ("BOS"), the Board views the financial and managerial reand thus indirectly acquiring Bank of the South, Me- sources of BOL, New Orleans Bank, FBT, BOS and tairie, Louisiana. its subsidiary bank as consistent with approval. Con- Notice of the application, affording an opportunity siderations relating to the convenience and needs of for interested persons to submit comments, has been the communities to be served are also consistent with given in accordance with section 3(b) of the Act approval. (12 U.S.C. § 1842(b)). The time for filing comments Based on the foregoing and other facts of record, has expired and the Board has considered the applica- including the commitments made by Applicant, the tion and all comments received in light of the factors Board has determined that the application should be, set forth in section 3(c) of the Act (12 U.S.C. and hereby is, approved. The transaction shall not be § 1842(c)). consummated before the thirtieth calendar day follow- BOL, a non-operating corporation with no subsid- ing the effective date of this Order, or later than three iaries, was organized for the purpose of becoming a months after the effective date of this Order, unless bank holding company by acquiring Banks and BOS. such period is extended for good cause by the Board or Upon consummation of this proposal, BOL would the Federal Reserve Bank of Atlanta, acting pursuant become the 24th largest commercial banking organiza- to delegated authority. tion in Louisiana, controlling three banks, with total By order of the Board of Governors, effective deposits of $111.3 million, representing 0.36 percent of January 6, 1988. total deposits in commercial banking organizations in the state.1 Consummation of this proposal would not Voting for this action: Chairman Greenspan and Governors significantly affect the concentration of banking re- Johnson, Seger, Angell, Heller, and Kelley. sources in the state. All three banks compete in the New Orleans bank- JAMES MCAFEE ing market.2 New Orleans Bank, FBT and BOS are, Associate Secretary of the Board respectively, the 20th, 28th, and 26th largest of 33 commercial banking organizations in the market, controlling $55.2 million, $24.7 million, and $31.4 million Plains Capital Corporation in deposits, representing 0.64 percent, 0.29 percent, Lubbock, Texas and 0.36 percent of total deposits in commercial banking organizations in the market. Upon consummation Order Approving Formation of a Bank Holding of this proposal, BOL would control $111.3 million in Company deposits in the market, representing 1.29 percent of total deposits in commercial banking organizations. The New Orleans banking market is not concentrated Plains Capital Corporation, Lubbock, Texas ("Plains and the Herfindahl-Hirschman Index will increase by Capital"), has applied for the Board's approval under only 2 points, from 1480 to 1482. Based on the facts of section 3(a)(1) of Bank Holding Company Act record, consummation of the proposed transaction ("Act"), 12 U.S.C. § 1842(a)(1), to become a bank would not result in any significant adverse effects upon holding company by acquiring The Plains Corporation, competition, nor would it significantly increase the Lubbock, Texas ("TPC"), and thereby indirectly acconcentration of banking resources in any relevant quiring Plains National Bank of Lubbock, Lubbock, area. Texas ("Bank"). The Board has previously indicated that a bank Notice of the application, affording interested perholding company should serve as a source of financial sons an opportunity to submit comments, has been and managerial strength to its subsidiary banks, and given in accordance with section 3(b) of the Act (52 Federal Register 33,655 (1987)). The time for filing comments has expired, and the Board has considered 1. All banking data are as of September 30, 1987. the application and all comments received in light of 2. The New Orleans banking market consists of the parishes of Orleans, Jefferson, St. Bernard and St. Tammany, Louisiana. the factors set forth in section 3(c) of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 173 Plains Capital is a nonoperating corporation formed Bank Holding Company Act of 1956, as amended (the for the purpose of acquiring TPC and Bank. Bank is a "Act") (12 U.S.C. § 1841 et seq.), has applied for the wholly owned subsidiary of TPC. Bank is the 71st Board's approval under section 3 of the Act (12 U.S.C. largest bank in the state, controlling deposits of $158.8 § 1842) to acquire American Asian Bancorp, San Franmillion, representing 0.10 percent of total deposits in cisco, California ("Bancorp"), and thereby to acquire commercial banking organizations in the state.1 Con- indirectly American Asian Bank, San Francisco, Calsummation of this proposal would not have any signif- ifornia ("Bank"). icant adverse effect on the concentration of banking Notice of the application, affording opportunity for resources in Texas. interested persons to submit comments and views, has Bank operates in the Lubbock County banking been duly published (52 Federal Register 44,935 market.2 The principals of Applicant are not associ- (1987)). The time for filing comments has expired, and ated with any other banking organization in this mar- the Board has considered the application and all ket. Consummation of this proposal would not result comments received in light of the factors set forth in in any adverse effects upon competition or increase section 3(c) of the Act. the concentration of banking resources in any relevant Applicant, with approximately $27 billion in deposmarket. Accordingly, the Board concludes that com- its in California, is the third largest of 439 commercial petitive considerations under the Act are consistent banking organizations in the state, controlling approxwith approval. imately 13.8 percent of total deposits in commercial The financial and managerial resources of Plains banks in California.1 Bank is the 64th largest commer- Capital, TPC and Bank are consistent with approval. cial banking organization in California, with deposits Considerations relating to the convenience and needs of approximately $195.6 million, controlling less than 1 of the communities to be served are also consistent percent of the total deposits in commercial banks in with approval. California. Consummation of the proposal would not Based on the foregoing and all the facts of record, significantly increase the concentration of banking the Board has determined that the application should resources in California. be and hereby is approved. The transaction shall not Applicant competes with Bank in the Los Angeles be consummated before the thirtieth calendar day and San Francisco metropolitan banking markets.2 following the effective date of this Order, or later than While Applicant is one of the largest commercial three months after the effective date of this Order, banking organizations in these markets, Bank is unless such period is extended for good cause by the among the smaller organizations, controlling less than Board or by the Federal Reserve Bank of Dallas 1 percent of the total deposits in commercial banks in pursuant to delegated authority. the Los Angeles market and the San Francisco By order of the Board of Governors, effective market.3 In view of these facts and the small increase January 11, 1988. in market concentrations in each market (less than 5 points on the Herfindahl-Hirschman Index), the Board concludes that consummation of the proposal would Voting for this action: Chairman Greenspan and Governors Seger, Angell, and Kelley. Absent and not voting: Governors not have any significant adverse competitive effects or Johnson and Heller. result in the concentration of banking resources in any relevant banking market. JAMES MCAFEE The financial and managerial resources of Applicant Associate Secretary of the Board are satisfactory and will enable Applicant to serve as a source of strength to Bancorp and Bank. Security Pacific Corporation Los Angeles, California Order Approving Acquisition of a Bank Holding 1. Statewide banking data are as of June 30, 1987. 2. Market data are as of June 30, 1986. The Los Angeles banking Company and Its Banking Subsidiary market is approximated by Los Angeles, Anaheim, Long Beach, Riverside, and San Bernadino. The San Francisco banking market is approximated by San Francisco, Marin, Sonoma, Solano, Napa, Security Pacific Corporation, Los Angeles, California, Contra Costa, San Mateo, Alameda, and Santa Clara counties. a bank holding company within the meaning of the 3. Applicant is the 2nd largest of 226 commercial banking organizations in the Los Angeles market, controlling approximately 21.1 percent of the total deposits in commercial banks in the market. Bank is the 62nd largest commercial banking organization in that market. 1. All banking data are as of December 31, 1986; state ranking is as Applicant is the 4th largest of 102 commercial banking organizations in of June 30, 1987. the San Francisco market, controlling approximately 2.5 percent of 2. The Lubbock County banking market is approximated by Lub- the total deposits in commercial banks in the market. Bank is the 40th bock County, Texas. largest commercial banking organization in that market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • March 1988 In considering the convenience and needs of the ments in a Spanish language newspaper serving the communities to be served, the Board has taken into Pomona area and also has placed advertisements in a account the records of Applicant and Bancorp under- local publication targeted to low- and moderate-inthe Community Reinvestment Act ("CRA"), come persons. Applicant also practices some flexi- 12 U.S.C. § 2901 et seq.4 The Board has received bility in its underwriting criteria and loan application comments from the Pomona Valley Chapter of the procedures. Accordingly, the Board concludes that National Association for the Advancement of Colored convenience and needs considerations in this case are Persons, Pomona, California ("Protestant").5 In ac- consistent with approval of the application.7 cordance with the Board's practice and procedure for Based on the foregoing and other facts of record, the handling protested applications,6 the Federal Reserve Board has determined that the application should be, Bank of San Francisco assisted in arranging a meeting and hereby is, approved. The acquisition of Bancorp between the parties to clarify the issues under the shall not be consummated before the thirtieth calendar CRA and to provide a forum to resolve the concerns day following the effective date of this Order, or later raised by the protest. The parties, however, were than three months after the effective date of this unable to come to a resolution of their differences. Order, unless such period is extended for good cause Initially, the Board notes that both Applicant and by the Board or by the Federal Reserve Bank of San Bancorp have satisfactory CRA records. The Board Francisco, acting pursuant to delegated authority. also notes that Applicant has scheduled a meeting in By order of the Board of Governors, effective early February to be attended by the CRA compliance January 27, 1988. personnel from all of its subsidiary banking organizations. This meeting is intended to furnish a forum for Voting for this action: Chairman Greenspan and Governors the dissemination of information concerning CRA pro- Johnson, Seger, Angell, Heller, and Kelley. grams available within Applicant's organization, discussion of individual programs of subsidiary banking JAMES MCAFEE organizations, and the establishment of a working Associate Secretary of the Board group to increase Applicant's CRA program coordination and to establish system-wide CRA compliance and reporting programs. With specific regard to the protest, the Board's analysis of SPNB's Home Mortgage Disclosure Act Orders Issued Under Sections 3 and 4 of the data for the years 1982-1986 for the Los Angeles MSA Bank Holding Company Act and the city of Pomona does not reveal a pattern of discrimination against minority and low-income neigh- Banc One Corporation borhoods. In addition, the Board notes that Applicant Columbus, Ohio is involved with organizations which identify the needs of low- and moderate-income persons in Los Angeles Order Approving Acquisition of a Bank Holding County (which includes Pomona) and which develop Company and manage programs that address those needs. Fur- Banc One Corporation, Columbus, Ohio ("Banc ther, Applicant places Spanish language advertise- One"), a bank holding company within the meaning of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) (the "Act"), has applied for the Board's ap- 4. The CRA requires the Board, in its evaluation of a bank holding company application, to assess the record of an applicant in meeting proval under section 3 of the Act (12 U.S.C. § 1842) to the credit needs of the entire community, including the low- and acquire The Marine Corporation, Milwaukee, Wisconmoderate-income neighborhoods, consistent with safe and sound sin ("Marine") and thereby indirectly to acquire Maoperation. 5. Protestant generally alleges that Applicant's subsidiary bank, Security Pacific National Bank ("SPNB"), has failed to fulfill its obligations under the CRA in Pomona, California. Protestant alleges that: (1) SPNB has not made an effort to ascertain the credit needs of minority and low-income persons in Pomona; (2) SPNB has not conducted a marketing program directed at 7. Protestant also requested that the Board order a public meeting. minorities and low-income persons in Pomona; Under the Board's rules, the Board may hold a public meeting on an (3) SPNB's practices have fostered the impression that minorities application to clarify factual issues related to the application and to and low-income persons in Pomona cannot obtain credit from provide an opportunity for testimony, if appropriate. 12 U.S.C. SPNB; and § 262.25(d). In this case, the Reserve Bank has arranged a private (4) SPNB's credit extensions in Pomona reveal a pattern of discrim- meeting for this purpose. In light of all the facts of record, the Board ination against minority and low-income neighborhoods. has determined that a public meeting would serve no useful purpose. 6. See 12 C.F.R. § 262.25(c). Accordingly, the request for a public meeting is denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 175 rine's subsidiary banks. Marine's present bank subsid- home state is Ohio.3 Marine owns banks in Wisconsin, iaries are listed in Appendix A to this Order.1 Illinois and Minnesota. Banc One also has applied under section 4(c)(8) of The statute laws of Wisconsin expressly authorize the Act (12 U.S.C. § 1843(c)(8)) and section the acquisition of a banking institution in Wisconsin by 225.23(a)(2) of Regulation Y (12 C.F.R. § 225.23(a)(2)) a bank holding company located in a number of states, to acquire the following nonbanking subsidiaries of including Ohio, if that other state authorizes the ac- Marine: Marinebanc Leasing Company, Inc., Milwau- quisition of a financial institution in that state on a kee, Wisconsin, and thereby engage in personal prop- reciprocal basis by a Wisconsin bank holding erty leasing activities; Marine Bank Services Corpora- company.4 Ohio law expressly authorizes the acquisition, Milwaukee, Wisconsin, and thereby engage in tion of a banking organization in Ohio by a Wisconsin data processing activities; and The Marine Trust Com- bank holding company on a reciprocal basis.5 pany, N.A., Milwaukee, Wisconsin, and thereby en- Wisconsin law also requires that an out-of-state gage in trust company activities. These activities are bank holding company which acquires a Wisconsin authorized for bank holding companies pursuant to the bank that was chartered on or after May 9, 1986, and Board's Regulation Y. 12 C.F.R. §§ 225.25(b)(3), (5) has been in existence for less than five years, divest and (7). the Wisconsin bank within two years after the date of Banc One also has applied under section 4(c)(14) of acquisition.6 Marine has one such subsidiary, Marine the Act (12 U.S.C. § 1843(c)(14)) to acquire the ex- Bank South, N.A., Mt. Pleasant, Wisconsin. To comport-trading company subsidiary of Marine, Marine ply with the Wisconsin statute, Banc One has commit- Financial Services Corporation, St. Thomas, U.S. ted to divest Marine Bank South, N.A., within the Virgin Islands. required time period. Notice of the applications, affording interested per- Marine also has a subsidiary bank in Illinois, Marine sons an opportunity to submit comments, has been Bank Chicago, Chicago, Illinois. The laws of Illinois published (52 Federal Register 44,482 (1987)). The allow acquisitions of Illinois banks only by "Midtime for filing comments has expired, and the Board western bank holding companies." Marine is a Midhas considered the applications and all comments western bank holding company as defined in Illinois received in light of the factors set forth in sections 3(c) law, and thus was entitled to acquire the Illinois bank. and 4(c)(8) of the Act.2 Banc One, however, does not qualify as a Midwestern Section 3(d) of the Act (12 U.S.C. § 1842(d)), the bank holding company under the Illinois statute, and Douglas Amendment, prohibits the Board from ap- therefore is not authorized to acquire an Illinois bank. proving an application by a bank holding company to The Illinois interstate banking statute provides, howacquire control of any bank located outside of the ever, that if a Midwestern bank holding company, holding company's home state, unless such acquisition such as Marine, that controlled an Illinois bank is is "specifically authorized by the statute laws of the subsequently acquired by a non-Midwestern bank state in which [the] bank is located, by language to that holding company, the Illinois banking commissioner effect and not merely by implication." Banc One's shall issue an order requiring the Midwestern bank holding company to divest the Illinois bank within such time and under such conditions as the commissioner finds appropriate to protect the safety and 1. In connection with this application, Banc One has applied to soundness of the Illinois bank.7 acquire warrants equal to 24.9 percent of Marine's voting shares. The Illinois banking commissioner has informed the These warrants are exercisable only upon the acquisition by any person or group of persons, of ownership of shares or of warrants or Board that the Illinois statute authorizes Banc One to options to acquire shares, equal to 25 percent or more of Marine's acquire the Illinois bank in connection with its acquioutstanding common stock. 2. The Board received a letter from the Main Street Business Association, Columbus, Ohio ("MSBA"), protesting Banc One's record under the Community Reinvestment Act ("CRA"). The Board has previously received a similar protest from MSBA in connection 3. A bank holding company's home state is that state in which the with a prior application by Banc One. See Banc One Corporation, 73 operations of the bank holding company's banking subsidiaries were FEDERAL RESERVE BULLETIN 124 (1987). In its consideration of that principally conducted on July 1, 1966, or the date on which the application, the Board found that the CRA record of Banc One's company became a bank holding company, whichever is later. subsidiary banks was satisfactory. In addition, Banc One made 4. Wis. Stat. Ann. § 221.58 (West 1987). specific commitments to improve its CRA record and agreed to 5. Ohio Rev. Code Ann. § 1101.05 (Page 1986). A determination of provide regular reports to the Reserve Bank detailing its progress in reciprocity of the Ohio and Wisconsin statutes has been signed by fulfilling the commitments. Pursuant to its commitment, Banc One has both the Superintendent of Banks of Ohio and the Commissioner of filed regular reports regarding its CRA activities with the Federal Banking of Wisconsin, the former on December 10, 1986 and the latter Reserve Bank of Cleveland, and the record shows that Banc One is on January 22, 1987. meeting its commitments. Based upon this review and all the reasons 6. Wis. Stat. Ann. § 221.58(5) (West 1987). set forth in the Board's earlier Order, the Board has concluded that the 7. See section 3.071(g) of the Illinois Interstate Banking Act, 111. issues raised in this protest do not warrant denial of this application. Rev. Stat. ch. 17 para. 2510.01(g)(1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin • March 1988 sition of Marine, provided that Banc One divests the processing, and trust activities. Consummation of the Illinois bank within such period as the commissioner proposal, however, would have a de minimis effect directs. The commissioner has further informed the on existing competition in each of these markets. Board that he intends to issue such an order after Banc Accordingly, the Board concludes that the proposal One acquires Marine, and Banc One has committed to would not have any significant adverse effect on comply with such an order. existing or probable future competition in any relevant Marine also operates a subsidiary bank in Minne- market. Furthermore, there is no evidence in the sota, Marine Bank, Bloomington, Minnesota. Minne- record to indicate that approval of this proposal would sota does not authorize an Ohio bank holding company result in undue concentration of resources, unfair to acquire a Minnesota bank. In this regard, Banc One competition, conflicts of interest, unsound banking has committed not to consummate its acquisition of practices, or other adverse effects on the public inter- Marine until such time as Marine has divested control est. Accordingly, the Board has determined that the of this subsidiary. balance of public interest factors it must consider Based on the above commitments, the Board con- under section 4(c)(8) of the Act is favorable and consistent with approval of the applications to acquire cludes that approval of Banc One's proposal to acquire the nonbanking subsidiaries of Marine. Marine is not barred by the Douglas Amendment. Banc One operates 38 banking subsidiaries located The Board also has considered the notice of Banc in Ohio, Indiana, Kentucky and Michigan. Banc One One's proposed acquisition of Marine Financial Seris the second largest commercial banking organization vices Corporation under section 4(c)(14) of the Act. in Ohio, controlling deposits of $9.0 billion, represent- Based on the facts of record, the Board has detering 13.0 percent of the total deposits in commercial mined that disapproval of the proposed acquisition is banks in Ohio.8 Marine is the third largest banking not warranted. organization in Wisconsin, controlling 21 banking sub- Based on the foregoing and other facts of record, the sidiaries with deposits of $3.4 billion, representing 9.8 Board has determined that the applications under percent of the total deposits in commercial banks in sections 3 and 4 of the Act should be and hereby are Wisconsin. Because Banc One does not compete in approved, subject to Banc One's commitments and Wisconsin or Illinois and will not acquire Marine's divestiture proposals. This approval is also subject to subsidiary in Minnesota, consummation of this pro- the condition that Banc One obtain all required state posal would have no significant adverse effect upon approvals and comply with any required divestitures the concentration of commercial banking resources in under state law. The acquisition of Marine shall not be these states. consummated before the thirtieth calendar day follow- Banc One and Marine do not compete directly in ing the effective date of this Order, or later than three any banking market. Accordingly, consummation of months after the effective date of this Order, unless this proposal would not result in any adverse effect such period is extended for good cause by the Board or by the Federal Reserve Bank of Cleveland, acting upon existing competition in any relevant banking pursuant to delegated authority. The determinations as market. In light of the existence of numerous potential to Banc One's nonbanking activities are subject to all entrants into the relevant banking markets, the Board of the conditions contained in Regulation Y, including has concluded that consummation of this prothose in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. posal would not have any significant adverse effect §§ 225.4(d) and 225.23(b)(3)), and to the Board's auon probable future competition in any relevant thority to require such modification or termination of market. the activities of a holding company or any of its The financial and managerial resources of Banc One subsidiaries as the Board finds necessary to assure and Marine are satisfactory. The Board notes that this compliance with the provisions and purposes of the proposal will be effected through an exchange of Act and the Board's regulations and orders issued stock and will not result in any additional debt being thereunder, or to prevent evasion thereof. incurred by the combined organization. Considerations relating to the convenience and needs of By order of the Board of Governors, effective the communities to be served by Banc One's and January 21, 1988. Marine's subsidiary banks also are consistent with approval. Voting for this action: Chairman Greenspan and Governors With respect to nonbanking subsidiaries, Marine Johnson, Seger, Angell, Heller, and Kelley. and Banc One compete in certain areas in leasing, data JAMES MCAFEE 8. Banking deposit data are as of June 30, 1987. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 28 APPENDIX A of the Act (12 U.S.C. § 1843(c)(8)) to acquire the various nonbanking subsidiaries of both First Fidelity Subsidiary Banks of Marine and Fidelcor, listed in Appendix B to this Order. FFB also has provided notice to the Board under section Marine Bank, N.A., Milwaukee, Wisconsin; Marine 4(c)(14) of the Act of its intention to invest in First Bank West, Delafield, Wisconsin; Peoples Marine Fidelity Tradexport Corporation, Newark, New Jer- Bank of Green Bay, Green Bay, Wisconsin; Marine sey, an export trading company. Finally, FFB has Bank South, N.A., Mt. Pleasant, Wisconsin; Marine provided notice to the Board under 12 C.F.R. Bank Appleton, N.A., Appleton, Wisconsin; Marine § 211.4(b)(3) of its intention to indirectly acquire con- Bank Dane County, Madison, Wisconsin; Marine First trol of the Edge Act Corporation subsidiaries of Fidel- National Bank, Janesville, Wisconsin; Citizens Marine cor. National Bank, Stevens Point, Wisconsin; Marine Notice of the applications, affording opportunity for Bank Southwest, N.A., Elkhorn, Wisconsin; Marine interested persons to submit comments and views, has Bank Monroe, Monroe, Wisconsin; West Bend Ma- been duly published (52 Federal Register 43,672 rine Bank, West Bend, Wisconsin; Marine Bank Osh- (1987)). The time for filing comments has expired, and kosh, N.A., Oshkosh, Wisconsin; Marine Bank of the Board has considered the applications and all Beaver Dam, Beaver Dam, Wisconsin; Marine Na- comments received in light of the factors set forth in tional Bank of Neenah, Neenah, Wisconsin; Fidelity sections 3(c) and 4(c)(8) of the Act. Marine Bank, Antigo, Wisconsin; Marine Bank Sey- FFB is a nonoperating company which seeks to mour, N.A., Seymour, Wisconsin; Marine Bank acquire First Fidelity and Fidelcor. First Fidelity, with Campbellsport, Campbellsport, Wisconsin; Firstar approximately $11.32 billion in domestic deposits, is Bank Clintonville, N.A., Clintonville, Wisconsin; Ma- the largest commmercial banking organization in New rine Bank Larsen, Larsen, Wisconsin; Marine Bank Jersey, controlling approximately 18.7 percent of total Freedom, Town of Freedom, Wisconsin; Marine Bank deposits in commercial banking organizations in the Mequon, Mequon, Wisconsin; Marine Bank Chicago, state.2 First Fidelity ranks 35th among commercial Chicago, Illinois; and Marine Bank, Bloomington, banking organizations in the United States. Fidelcor is Minnesota. the fourth largest commercial banking organization in Pennsylvania, with domestic deposits of $8.83 billion, FFB, Inc. controlling approximately 7.4 percent of the total Newark, New Jersey deposits in commercial banking organizations in Penn- Philadelphia, Pennsylvania sylvania. Fidelcor ranks 45th among commercial banking organizations in the United States. Upon consum- Order Approving Acquisition of Bank Holding mation of this proposal, FFB would become the 18th Companies largest commercial banking organization in the United States, controlling approximately one percent of total FFB, Inc., Newark, New Jersey and Philadelphia, domestic deposits. Pennsylvania ("FFB"), has applied for the Board's Section 3(d) of the Act (12 U.S.C. § 1842(d)), the approval pursuant to section 3 of the Bank Holding Douglas Amendment, prohibits the Board from ap- Company Act (12 U.S.C. § 1842(a) ("Act")), to be- proving any application by a bank holding company to come a bank holding company and to acquire First acquire control of any bank located outside of the Fidelity Bancorporation, Newark, New Jersey ("First holding company's home state, unless such acquisition Fidelity"), and Fidelcor, Inc., Philadelphia, Pennsyl- is "specifically authorized by the statute laws of the vania ("Fidelcor"), thereby acquiring indirectly the State in which the bank is located, by language to that banking subsidiaries of both First Fidelity and Fidel- effect and not merely by implication." The Board cor listed in Appendix A to this Order.1 FFB also has previously has determined that Pennsylvania law perapplied for the Board's approval under section 4(c)(8) mits an eligible New Jersey bank holding company, subject to state approval, to acquire a bank or bank holding company located in Pennsylvania.3 Based on the foregoing and its own review of the record, the 1. First Fidelity and Fidelcor will be acquired through respective mergers with two newly-formed subsidiaries of FFB, FFB Bancorpo- Board has determined that the proposed acquisition is ration and FFB Fidelcor, Inc. Upon consummation of this proposal, specifically authorized by the statute laws of Pennsyl- FFB Inc. (Applicant) will be renamed First Fidelity Bancorporation. The bank holding company which is presently named First Fidelity Bancorporation will change its name to First Fidelity Incorporated which, along with Fidelcor, will be a second tier bank holding 2. All state deposit data are as of June 30, 1987. company of the new bank holding company, First Fidelity Bancorpo- 3. Midlantic Corporation, 73 FEDERAL RESERVE BULLETIN 63 ration. (1987); 1986 Pa. Laws No. 69 (effective August 24, 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin • March 1988 vania, and thus Board approval is not prohibited by Board has concluded that the managerial resources of the Douglas Amendment. Applicant, First Fidelity, Fidelcor, and their subsid- The Board has considered the effects of the proposal iary banks, are consistent with approval. upon competition in the relevant banking markets. Financial factors and convenience and needs con- First Fidelity and Fidelcor both control banking orga- siderations are also consistent with approval of the nizations which compete in the Philadelphia/Trenton applications. banking market.4 Fidelcor is the second largest com- As indicated above, FFB also has applied, pursuant mercial banking organization in the market, with 15.1 to section 4(c)(8), to acquire the nonbanking subsidpercent of total deposits in commercial banking orga- iaries of First Fidelity and Fidelcor. First Fidelity and nizations. First Fidelity is the eighth largest commer- Fidelcor operate nonbanking subsidiaries that comcial banking organization in the market, with 3.4 pete in the activities of residential and commercial percent of total deposits in commercial banking orga- mortgage banking, commercial finance and factoring, nizations. Upon consummation of this proposal, FFB retail discount brokerage services, leasing and equipwould become the largest commercial banking organi- ment leasing. The markets for these activities possess zation in the market, controlling 18.5 percent of total numerous competitors and are regional or national in deposits in commercial banks. scope. Accordingly, the Board concludes that this The Philadelphia/Trenton banking market is consid- proposal will not have any significant adverse effect ered unconcentrated. The Herfindahl-Hirschman In- upon competition in any relevant market. dex for the market is 985 which would increase by 102 There is no evidence in the record to indicate that points at consummation to 1087. Although this acqui- approval of this proposal would result in undue consition would eliminate some existing competition be- centration of resources, decreased or unfair competitween First Fidelity and Fidelcor in that market, the tion, conflicts of interests, unsound banking practices, Board concludes that consummation of the proposal or other adverse effects on the public interest. Accordwould not have a substantial adverse effect on existing ingly, the Board has determined that the balance of competition in any relevant banking market. public interest factors it must consider under section The Board also has considered the effects of FFB's 4(c)(8) of the Act is favorable and consistent with proposal on probable future competition in the mar- approval of the applications to acquire the nonbanking kets in which First Fidelity and Fidelcor, but not both, subsidiaries of First Fidelity and Fidelcor. compete. In light of the number of probable future The Board also has considered the notice of FFB's entrants into each of these markets, the Board con- proposed acquisition of First Fidelity Tradexport Corcludes that consummation of this proposal would not poration under section 4(c)(14) of the Act and the have a significant adverse effect on probable future acquisition of control of Fidelity International Bank competition in any relevant banking market. and Fidelity Overseas Investment, Inc. under the In evaluating managerial resources with respect to Edge Act. Based on the facts of record, the Board has this proposal, the Board has carefully considered determined that disapproval of the proposed investcertain violations by First Fidelity and Fidelcor of the ments is not warranted. Currency and Foreign Transactions Reporting Act Based on the foregoing and other facts of record, the ("CFTRA") and the regulations thereunder.5 The Board has determined that the applications should be, Board notes that First Fidelity and Fidelcor have and hereby are, approved, subject to the express established comprehensive policies and procedures to determination of the Pennsylvania Deputy Secretary ensure future compliance with CFTRA. Examiners of Banking that the applications comply with all of the from the primary regulators of the various bank sub- requirements of Pennsylvania law. The acquisitions sidiaries of First Fidelity and Fidelcor have reviewed shall not be consummated before the thirtieth calendar the sufficiency of these compliance procedures and day following the effective date of this Order, or later their efficacy in correcting the deficiencies. The Board than three months after the effective date of this also has consulted with appropriate enforcement agen- Order, unless such period is extended for good cause cies, and has considered the past records of compli- by the Board or by the Federal Reserve Bank of ance with the law of First Fidelity and Fidelcor. Based Philadelphia, acting pursuant to delegated authority. upon the foregoing and other facts of record, the The determinations as to FFB's nonbanking activities are subject to all of the conditions contained in Regulation Y, including those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), 4. The Philadelphia/Trenton banking market consists of Philadelphia, Bucks, Montgomery, Chester and Delaware Counties in Penn- and to the Board's authority to require such modificasylvania, and Burlington, Camden, Gloucester and Mercer Counties tion or termination of the activities of a holding comin New Jersey. All market data are as of June 30, 1986. pany or any of its subsidiaries as the Board finds 5. 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 179 necessary to assure compliance with the provisions thereby engage in trust company functions pursuant to and purposes of the Act and the Board's regulations section 225.25(b)(3) of the Board's Regulation Y; and and orders issued thereunder, or to prevent evasion First Fidelity Trust Company, New York, New York, thereof. New York, and thereby engage in trust company By order of the Board of Governors, effective functions pursuant to section 225.25(b)(3) of the January 11, 1988. Board's Regulation Y. Fidelcor, Inc.: Fidelcor Business Credit Corporation, New York, New York, and thereby engage in Voting for this action: Chairman Greenspan and Governors Seger, Angell, and Kelley. Absent and not voting: Governors factoring and originating and servicing extensions of Johnson and Heller. credit pursuant to section 225.25(b)(1) of the Board's Regulation Y, and data processing pursuant to section JAMES MCAFEE 225.25(b)(7) of the Board's Regulation Y; Fidelcor Associate Secretary of the Board Business Credit Corporation of California, Inc., Los Angeles, California and thereby engage in originating and servicing extensions of credit pursuant to section APPENDIX A 225.25(b)(1) of the Board's Regulation Y, and data processing pursuant to section 225.25(b)(7) of the Bank Subsidiaries to be Acquired Board's Regulation Y; Latimer & Buck, Inc., Philadelphia, Pennsylvania, and thereby engage in originat- First Fidelity Bancorporation: First Fidelity Bank, ing and servicing extensions of credit pursuant to N.A., New Jersey, Newark, New Jersey; First Fidel- section 225.25(b)(1) of the Board's Regulation Y, ity Bank, N.A., North Jersey, Totowa, New Jersey; act as investment advisor pursuant to section First Fidelity Bank, N.A., South Jersey, Burlington, 225.25(b)(4)(iii) of the Board's Regulation Y, and ap- New Jersey; Morris Savings Bank, Morristown, New praise real estate pursuant to section 225.25(b)(13) of Jersey; and First Fidelity Bank, Princeton, South the Board's Regulation Y; Florida Commercial Mort- Brunswick, New Jersey. gage Corp., Orlando, Florida, and thereby engage in Fidelcor, Inc.: Fidelity Bank, N.A., Malvern, Penn- originating and servicing extensions of credit pursuant sylvania; Fidelity Bank, Delaware, New Castle, Del- to section 225.25(b)(1) of the Board's Regulation Y, aware; Merchants Bancorp, Inc., Allentown, Pennsyl- and act as investment advisor pursuant to section vania; Merchants Bank, N.A., Allentown, 225.25(b)(4) of the Board's Regulation Y; Corporate Pennsylvania; Number One State Bank, Wilkes-Barre, Programs, Inc., Philadelphia, Pennsylvania, and Pennsylvania; and Merchants Bank, North, Wilkes- thereby engage in originating and servicing extensions Barre, Pennsylvania. of credit pursuant to section 225.25(b)(1) of the Board's Regulation Y, and act as investment advisor pursuant to section 225.25(b)(4) of the Board's Regulation Y; Fidelcor Mortgage Corporation, Franklin, APPENDIX B Georgia, and thereby engage in originating and servicing extensions of credit pursuant to section Nonbanking Subsidiaries to be Acquired 225.25(b)(1) of the Board's Regulation Y and engage in the sale of credit-related life, accident and health First Fidelity Bancorporation: First Fidelity Capital insurance pursuant to section 225.25(b)(8) of the Corporation, Newark, New Jersey, and thereby en- Board's Regulation Y; Fidelcor Mortgage Corporation gage in commercial and consumer lending pursuant to of Georgia, Inc., Franklin, Georgia, and thereby ensection 225.25(b)(1) and leasing pursuant to section gage in originating and servicing extensions of credit 225.25(b)(5) of the Board's Regulation Y; First Fidelity pursuant to section 225.25(b)(1) of the Board's Regu- Service Corporation, Newark, New Jersey, and lation Y and engage in the sale of credit-related life, thereby engage in sales financing pursuant to section accident and health insurance pursuant to section 225.25(b)(1) of the Board's Regulation Y; First Fidelity 225.25(b)(8) of the Board's Regulation Y; Fidelity Community Development Corporation, Atlantic City, Credit Corporation, Philadelphia, Pennsylvania and New Jersey, and thereby engage in community develthereby engage in servicing loans pursuant to section opment activities pursuant to section 225.25(b)(6) of 225.25(b)(1) of the Board's Regulation Y; FCC-PR, the Board's Regulation Y; First Fidelity Brokers, Inc., Inc., Puerto Rico, and thereby engage in servicing Newark, New Jersey, and thereby engage in discount loans pursuant to section 225.25(b)(1) of the Board's securities brokerage activities pursuant to section Regulation Y; Fidelcor Brokerage Services, Inc., Phil- 225.25(b)(15) of the Board's Regulation Y; First Fideladelphia, Pennsylvania, and thereby engage in disity Trust, N.A., Florida, Boca Raton, Florida, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • March 1988 count securities brokerage activities pursuant to sec- Notice of the applications, affording an opportunity tion 225.25(b)(15) of the Board's Regulation Y; for interested persons to submit comments, has been Fidelcor Trading, Inc., Philadelphia, Pennsylvania, duly published (52 Federal Register 31,815 (1987)). and thereby engage in executing and clearing options The time for filing comments has expired, and the in foreign currency pursuant to section 225.25(b)(18) of Board has considered the applications and all comthe Board's Regulation Y; Merchants Life, Allentown, ments received in light of the factors set forth in Pennsylvania, and thereby engage in the reinsurance sections 3(c) and 4(c)(8) of the Act. of credit life, disability and health insurance written by M&I is the second largest commercial banking oran outside carrier in connection with extensions of ganization in Wisconsin2 and controls aggregate decredit by Merchants Bancorp, Inc., pursuant to sec- posits of approximately $3.9 billion, representing 12.3 tion 225.25(b)(8) of the Board's Regulation Y; and percent of total deposits in commercial banking orga- Fidelcor Life Insurance Company, Phoenix, Arizona, nizations in the state.3 Central is the eighth largest and thereby engage in the reinsurance of credit life, commercial banking organization in Wisconsin, condisability and health insurance written by an outside trolling deposits of approximately $631.6 million, repinsurance carrier in connection with extensions of resenting 2.0 percent of total deposits in commercial credit by Fidelity Bank, N.A. and its affiliates, pursu- banking organizations in the state.4 Upon consummaant to section 225.25(b)(8) of the Board's Regula- tion of the proposal and the planned divestiture, M&I tion Y. would remain the second largest commercial banking organization in Wisconsin, controlling deposits of ap- Marshall & Ilsley Corporation proximately $4.5 billion, representing 14.3 percent of Milwaukee, Wisconsin total deposits in commercial banking organizations in the state. Accordingly, consummation of this proposal Order Approving Acquisition of a Bank Holding would not have any significant adverse effect on the concentration of banking resources in the state. Company M&I's subsidiary banks compete directly with Cen- Marshall & Ilsley Corporation, Milwaukee, Wisconsin tral's subsidiary banks in five banking markets: the ("M&I"), a bank holding company within the meaning Stevens Point, Wausau, Neillsville, Rhinelander and of the Bank Holding Company Act ("Act"), 12 U.S.C. Wood banking markets. § 1841 et seq., has applied for the Board's approval In the Stevens Point banking market,5 M&I is the under section 3 of the Act to acquire 100 percent of the largest of 12 commercial banking organizations, convoting shares of Central Wisconsin Bankshares, Inc., trolling deposits of $143.0 million, representing 37.6 Wausau, Wisconsin ("Central"), and thereby indi- percent of the total deposits in commercial banking rectly to acquire Central's bank holding company organizations in the market. Central is the third largest subsidiary, CWB Holdings Onalaska, Inc., Wausau, commercial banking organization in the banking mar- Wisconsin, and its 14 bank subsidiaries.1 M&I has also ket, controlling deposits of $25.2 million, representing applied under section 4(c)(8) of the Act to acquire 6.6 percent of the total deposits in commercial banking indirectly Wisconsin Valley Trust Company, Wausau, organizations in the market. The Stevens Point bankwhich engages in trust company activities; and First ing market is concentrated, with the market share of American Investment, Inc., Wausau, which engages in the four largest commercial banking organizations discount brokerage services. These activities have increasing from 74.6 percent to 79.6 percent. Upon been determined by the Board to be closely related to consummation of this proposal, M&I would control banking and permissible for bank holding companies. deposits of $168.2 million, representing 44.2 percent of 12 C.F.R. §§ 225.25(b)(3) and (15). the total deposits in commercial banks in the market, and the Herfindahl-Hirschman Index ("HHI") would increase by 496 points to 2698.6 1. Central's bank subsidiaries are: Bank of Onalaska, Onalaska; Bank of Plover, Plover; Central National Bank of Wausau, Wausau; 2. M&I has 29 bank subsidiaries in Wisconsin and one in Arizona. Community First Bank, New Lisbon; Community State Bank, Eau 3. All banking data are as of June 30, 1986. Claire; Eagle River State Bank, Eagle River; First American National 4. Data include the Peoples Bank of Antigo. Bank, Wausau; First National Bank of Neillsville, Neillsville; Mosi- 5. The Stevens Point banking market is approximated by Portage nee Commercial Bank, Mosinee; Northern National Bank, Rhine- County, Iola and Scandinavia townships in Waupaca County, and lander; Tri-County State Bank of Marshfield, Marshfield; Union Plainfield and Hancock townships in Waushara County, all in Wis- National Bank of Ashland, Ashland; and Valley View Bank, La- consin. Crosse, all in Wisconsin. Included as one of Central's bank subsid- 6. Under the revised Department of Justice Merger Guidelines, 49 iaries is the Peoples Bank of Antigo, Antigo, Wisconsin. Central has Federal Register 26,823 (June 29, 1984), a market in which the received approval to acquire this bank, but has not yet consummated post-merger HHI is above 1800 is considered highly concentrated. In the acquisition. such markets, the Department is likely to challenge a merger that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 181 In order to mitigate the adverse competitive effects In the Wausau banking market,10 M&I is the fifth that would otherwise result from consummation of this largest of 14 commercial banking organizations, conproposal, M&I has committed to divest one of its trolling deposits of $50.9 million, representing 7.3 banking subsidiaries, M&I Bank of Park Ridge, on or percent of the total deposits in commercial banking before consummation of the proposed acquisition to a organizations in the market. Central is the largest group of individuals who are not affiliated with any commercial banking organization in the banking marother depository institution in the market.7 After the ket, controlling deposits of $229.9 million, representproposed divestiture, and upon consummation of this ing 33.1 percent of the total deposits in commercial proposal, M&I would remain the largest banking or- banking organizations in the market. The Wausau ganization in the market, controlling 39.5 percent of banking market is moderately concentrated, with the the total market deposits. The four-firm concentration four largest commercial banking organizations controlratio would be 76.5 percent and the HHI would be ling 58.9 percent of the deposits in commercial banks 2370. in the market. Upon consummation of this proposal, Although consummation of this proposal would M&I would become the largest commercial banking eliminate some existing competition in the Stevens organization in the market, controlling deposits of Point banking market, numerous other commercial $280.8 million, representing 40.4 percent of the total banks would continue to operate in the market after deposits in the market. The four-firm concentration consummation of this proposal. Moreover, the number would increase by 7.7 percentage points to 66.6 perof competitors in the market will remain unchanged. In cent, and the HHI would increase by 483 points to addition, the Board has considered the presence of 2005. thrift institutions in the banking market in its analysis Although consummation of this proposal would of this proposal.8 Based upon the number, size and eliminate some existing competition in the Wausau market share of thrift institutions in the market, the banking market, numerous other commercial banks Board has concluded that thrift institutions exert a would continue to operate in the market after consumsignificant competitive influence that mitigates the mation of this proposal. In addition, the market would anticompetitive effects of this proposal in the Stevens remain unconcentrated. Moreover, the Board has con- Point banking market.9 sidered the presence of thrift institutions in the market. Based upon the number, size and market share of thrift institutions in the market, the Board has concluded that thrift institutions exert a significant competitive influence that mitigates the anticompetitive effects of this proposal in the Wausau banking increases the HHI by more than 50 points. The Department has market.11 informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticom- The Neillsville, Rhinelander and Wood banking petitive effects) unless the post-merger HHI is at least 1800 and the markets12 are moderately concentrated and would merger increases the HHI by at least 200 points. The Justice Departremain moderately concentrated upon consummation ment has stated that the higher than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recog- of this proposal. In view of the market shares of the nizes the competitive effect of limited-purpose lenders and other resulting organization and the small increase in connon-depository financial entities. The Department has informed the Board that, in light of the proposed divestiture, the acquisition will not centration, consummation of this proposal would not have a significantly adverse effect upon competition in the Stevens have a substantial adverse effect upon competition in Point market. 7. The Board's Policy with regard to divestitures intended to remedy the anticompetitive effects resulting from a merger or acquisition proposal requires that divestitures must occur on or before 10. The Wausau banking market is approximated by the southern consummation. Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE three-fifths of Lincoln County and Marathon County, excluding BULLETIN 190 (1982); InterFirst Corporation, 68 FEDERAL RESERVE Holton, Hull, Brighton, Spencer, McMillan and Day townships, all in BULLETIN 243 (1982). Wisconsin. 8. The Board has previously indicated that thrift institutions have 11. If 50 percent of deposits held by thrift institutions in the Wausau become, or have the potential to become, major competitors of banking market were included in the calculation of market concentracommercial banks. National City Corporation, 70 FEDERAL RESERVE tion, the share of total deposits held by the four largest organizations BULLETIN 743 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE in the market would be 56.9 percent. M&I would control 6.3 percent BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL of the market's deposits and Central would control 28.4 percent of the RESERVE BULLETIN 802 (1983); and First Tennessee National Corpo- market's deposits. The HHI would increase by 358 points to 1543. ration, 69 FEDERAL RESERVE BULLETIN 298 (1983). 12. The Neillsville banking market is approximated by Clark 9. If 50 percent of deposits held by thrift institutions in the Stevens County and Holton, Hull and Brighton townships in Marathon Point banking market were included in the calculation of market County, all in Wisconsin. The Rhinelander banking market is approxconcentration, after the divestiture, the share of total deposits held by imated by Vilas and Oneida Counties, Forest County excluding Alvin the four largest organizations in the market would be 69.9 percent. and Popple River townships, and the northern two-fifths of Lincoln M&I would control 28.5 percent of the market's deposits and Central County, all in Wisconsin. The Wood banking market is approximated would control 5.7 percent of the market's deposits. The HHI would by Wood County and Spencer, McMillan and Day townships in increase by 92 points to 1849. Northern County, all in Wisconsin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 1988 the Neillsville, Rhinelander and Wood banking public interest factors it must consider under section markets.13 4(c)(8) of the Act is favorable and consistent with On the basis of the foregoing and other facts of approval of the applications to acquire Central's nonrecord, the Board concludes that consummation of the banking subsidiaries and activities. proposal would not have a substantial adverse effect Based on the foregoing and other facts of record, the on existing competition in the Stevens Point, Wausau, Board has determined that the applications should be, Neillsville, Rhinelander and Wood banking markets. and hereby are, approved subject to M&I's commit- The Board has considered the effects of this pro- ment to divest a banking subsidiary in the Stevens posal on probable future competition in the markets in Point banking market. The acquisition of Central shall which only one of the two holding companies com- not be consummated before the thirtieth calendar day petes. In view of the number of probable future following the effective date of this Order, or later than entrants into the market, the Board concludes that three months after the effective date of this Order, consummation of this proposal would not have any unless such period is extended for good cause by the significant adverse effect on probable future competi- Board or by the Federal Reserve Bank of Chicago, tion in any relevant banking market. acting pursuant to delegated authority. The determi- The financial and managerial resources of M&I, nations as to Applicant's nonbanking activities are Central and their subsidiary banks are consistent with subject to all of the conditions contained in Regulation approval. Considerations relating to the convenience Y, including those in sections 225.4(d) and and needs of the communities to be served are also 225.23(b)(3), 12 C.F.R. §§ 225.4(d) and 225.23(b)(3), consistent with approval. and to the Board's authority to require such modifica- M&I has also applied, pursuant to section 4(c)(8) of tion or termination of the activities of a holding comthe Act, to acquire Central's nonbanking subsidiaries pany or any of its subsidiaries as the Board finds and thereby engage in trust company activities and necessary to assure compliance with, or to prevent discount brokerage services. M&I operates a non- evasion of, the provisions and purposes of the Act and banking subsidiary that competes with Central in trust the Board's regulations and orders issued thereunder. company activities. Central's trust company activities By order of the Board of Governors, effective are insignificant14 in the market where M&I's trust January 27, 1988. company activities are concentrated, and M&I's trust company activities are relatively insignificant in the Voting for this action: Chairman Greenspan and Governors markets where Central's trust company activities are Johnson, Seger, Angell, Heller, and Kelley. concentrated. In addition, there are numerous existing and potential competitors in the relevant markets for JAMES MCAFEE trust company activities. Furthermore, M&I does not Associate Secretary of the Board engage in discount brokerage activities. Accordingly, the Board concludes that this proposal will not have Shawmut National Corporation any significant adverse effect upon competition in the Boston, Massachusetts proposal's nonbanking activities in any relevant market. Order Approving Formation of a Bank Holding There is no evidence in the record to indicate that Company approval of this proposal would result in undue concentration of resources, decreased or unfair competi- Shawmut National Corporation, Boston, Massachution, conflicts of interests, unsound banking practices, setts ("Shawmut"), has applied for the Board's apor other adverse effects on the public interest. Accord- proval under section 3(a)(1) of the Bank Holding ingly, the Board has determined that the balance of Company Act ("Act") (12 U.S.C. § 1842(a)(1)), to become a bank holding company by acquiring the successor by merger to Hartford National Corpora- 13. In the Neillsville banking market, upon consummation, the tion, Hartford Connecticut ("HNC"), as well as the HHI would increase by 22 points to 1173 and the resulting organiza- successor by merger to Shawmut Corporation, Bostion's market share would be 12.2 percent. In the Rhinelander market, ton, Massachusetts ("SC"), and thereby indirectly to upon consummation, the HHI would increase by 339 points to 1423 and the resulting organization's market share would be 26.1 percent. acquire HNC's ten subsidiary banks1 in Connecticut, In the Wood banking market, upon consummation, the HHI would increase by 150 points to 1434 and the resulting organization's market share would be 18.9 percent. 14. Central derives 0.4 percent of its trust company activity from 1. The subsidiary banks of HNC are: The Connecticut National the market where M&I's trust company activities are concentrated. Bank, Hartford, Connecticut; Seymour Trust Company, Seymour, M&I derives 1.8 percent of its trust company activity from the Connecticut; Chester Bank, Chester, Connecticut; State Savings markets where Central's trust company activities are concentrated. Bank, Southington, Connecticut; Arlington Trust Company, Law- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 183 Massachusetts and Rhode Island, as well as SC's nine banking organization in Massachusetts, controlling subsidiary banks2 in Connecticut and Massachusetts. deposits of $2.4 billion, representing 3.9 percent of the Shawmut has also applied under section 4(c)(8) of total deposits in commercial banks in that state, and the Act (12 U.S.C. § 1843(c)(8)) to acquire the non- the fourth largest commercial banking organization in banking subsidiaries of HNC and SC listed in Appen- Rhode Island, controlling deposits of $501 million, dix A to this Order.3 representing 6.0 percent of the total deposits in com- Notice of the applications, affording interested per- mercial banks in that state. SC is the seventh largest sons an opportunity to submit comments, has been commercial banking organization in Connecticut, conpublished (52 Federal Register 46,532 (1987)). The trolling deposits of $621 million, representing 2.5 pertime for filing comments has expired, and the Board cent of the total deposits in commercial banks in has considered the applications and all comments Connecticut. SC also is the third largest commercial received in light of the factors set forth in sections 3(c) banking organization in Massachusetts, controlling and 4(c)(8) of the Act. deposits of $8.2 billion, representing 13.9 percent of Section 3(d) of the Act, the Douglas Amendment, the total deposits in commercial banks in that state. prohibits the Board from approving an application by a Upon consummation of the proposed acquisition, bank holding company to acquire a bank located Shawmut would be the largest commercial banking outside of the bank holding company's home state, organization in Connecticut, controlling $6.7 billion in unless the acquisition is "specifically authorized by deposits, representing an approximate 27.3 percent the statute laws of the state in which such bank is share of deposits in banks in that state. Also, Shawmut located, by language to that effect and not merely by would become the third largest commercial banking implication."4 Shawmut's home state is Massachu- organization in Massachusetts, controlling $10.6 bilsetts. The Board has previously determined that the lion in deposits, representing approximately 18.0 perinterstate banking statutes of Connecticut and Rhode cent of the deposits in banks in that state, and the Island expressly authorize a Massachusetts bank hold- fourth largest commercial banking organization in ing company, such as Shawmut, to acquire banking Rhode Island. In the Board's view, consummation of organizations in those states. Accordingly, approval of this proposal would have no significant adverse effect Shawmut's proposal to acquire HNC and SC is not upon the concentration of commercial banking rebarred by the Douglas Amendment.5 sources in Connecticut, Massachusetts, or Rhode Is- HNC, which controls subsidiary banks in Connect- land. icut, Massachusetts and Rhode Island, is the second HNC and SC compete directly in the Boston and largest commercial banking organization in Connecti- New Bedford banking markets in Massachusetts; the cut, controlling deposits of $6.1 billion, representing Hartford, New Haven, New London, and Waterbury 24.8 percent of the total deposits in commercial banks banking markets in Connecticut; and the Metropolitan in that state.6 HNC is the sixth largest commercial New York-New Jersey banking market. In the New Bedford banking market,7 HNC is the fifth largest commercial banking organization, controlrence, Massachusetts; The Provident Institution for Savings in the ling $47.9 million in deposits, which represents 8.3 Town of Boston, Boston, Massachusetts; First Bristol County Na- percent of the total deposits in banks in that market. tional Bank, Attleboro Falls, Massachusetts; Framingham Trust Company, Framingham, Massachusetts; First Bank, Chelmsford, Massa- SC is the largest commercial banking organization, chusetts; and People's Bank, N.A., Johnston, Rhode Island. controlling $211 million in deposits, which represents 2. The subsidiary banks of SC are: Shawmut Bank, N.A., Boston, 36.5 percent of total deposits in commercial banks in Massachusetts; Shawmut Bank of Cape Cod, N.A., Orleans, Massachusetts; Shawmut Bank of Franklin County, Greenfield, Massachu- the market. Upon consummation of this proposal, setts; Shawmut Bank of Hampshire County, N.A., Amherst, Massa- Shawmut would become the largest commercial bankchusetts; Shawmut Bank of Southeastern Massachusetts, N.A., New ing organization in the market, controlling 44.8 percent Bedford, Massachusetts; Shawmut First Bank and Trust Company, Springfield, Massachusetts; Shawmut Worcester County Bank, N.A., of the deposits in commercial banks in the market. The Worcester, Massachusetts; Shawmut Home Bank, Meriden, Connect- market share of the four largest commercial banking icut; and Shawmut Fidelity Bank, Stamford, Connecticut. organizations would increase from 85.6 percent to 93.9 3. In connection with this application, HNC and SC have each requested approval to exercise options for 24.9 percent of the other's percent and the Herfindahl-Hirschman Index voting shares. ("HHI") would increase by 606 points to 2859.8 4. 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 date is later. 12 U.S.C. 7. The New Bedford banking market includes: the New Bedford § 1842(d). RMA, plus the town of Wareham and that portion of Freetown not 5. Bank of New England Corporation, 70 FEDERAL RESERVE BUL- already included in the RMA. LETIN 374 (1984); Bank of Boston Corporation, 70 FEDERAL RESERVE 8. Under the revised Department of Justice Merger Guidelines, 49 BULLETIN 737 (1984). Federal Register 26,823 (June 29, 1984), a market in which the 6. State banking data are as of June 30, 1987. post-merger HHI is above 1800 is considered highly concentrated. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 1988 In the Hartford banking market,9 HNC is the largest Although consummation of this proposal would commercial banking organization, controlling $3.3 bil- eliminate existing competition between HNC and SC lion in deposits, which represents 37.8 percent of the in the New Bedford, Hartford, New Haven, and New total deposits in banks in that market. SC is the tenth London banking markets, numerous other commercial largest commercial banking organization, controlling banking organizations would continue to operate in $83.3 million in deposits, which represents 1.0 percent each market. In addition., the Board has considered the of total deposits in commercial banks in the market. presence of thrift institutions in these banking markets Upon consummation of this proposal, Shawmut would in its analysis of this proposal. These institutions be the largest commercial banking organization in the account for over 50 percent of the total deposits in market, controlling 38.8 percent of the deposits in each of the markets. The Board previously has indicommercial banks in the market. The HHI would cated that thrift institutions have become, or have the increase by 73 points to 2966. potential to become, major competitors of commercial In the New Haven banking market,10 HNC is the banks.12 Thrift institutions already exert a considerlargest commercial banking organization, controlling able competitive influence in the market as providers $688 million in deposits, which represents 23.6 percent of NOW accounts and consumer loans, and many are of the total commercial bank deposits in that market. engaged in the business of making commercial loans SC is the fifth largest commercial banking organiza- and accepting demand deposits. Based upon the numtion, controlling $220 million in deposits, which repre- ber, size, market shares and commercial lending acsents 7.5 percent of total deposits in commercial banks tivities of thrift institutions in the New Bedford, Hartin the market. Upon consummation of this proposal, ford, New Haven, and New London markets, the Shawmut would become the largest commercial bank- Board has concluded that thrift institutions exert a ing organization in the market, controlling 31.1 percent significant competitive influence that mitigates the of the deposits in commercial banks. The HHI would anticompetitive effects of this proposal in these increase by 355 points to 1896. markets.13 In the New London banking market,11 HNC is the In the Boston banking market,14 HNC is the sixth largest commercial banking organization, controlling largest commercial banking organization, controlling $361 million in deposits, which represents 33.6 percent $1.5 billion in deposits, which represents 4.2 percent of the total deposits in that area. SC is the ninth largest of the total deposits in that area. SC is the fourth commercial banking organization, controlling $13 mil- largest commercial banking organization, controlling lion in deposits, which represents 1.2 percent of total $4.35 billion in deposits, which represents 12.0 percent deposits in commercial banks in the market. Following of total deposits in commercial banks in the market. consummation of this proposal, Shawmut would be Following consummation of this proposal, Shawmut the largest commercial banking organization, control- would be the third largest commercial banking organiling 34.9 percent of the deposits in commercial banks in the market. The HHI would increase by 83 points to 2302. 12. National City Corporation, 70 FEDERAL RESERVE BULLETIN 743 (1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE BULLETIN 529 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL such markets, the Department is likely to challenge a merger that RESERVE BULLETIN 802 (1983); First Tennessee Corporation, 69 increases the HHI by more than 50 points. The Department has FEDERAL RESERVE BULLETIN 298 (1983). informed the Board that a bank merger or acquisition generally will 13. The following data indicate the market share and the change in not be challenged (in the absence of other factors indicating anticom- the HHI if 50 percent of the deposits controlled by thrift institutions in petitive effects) unless the post-merger HHI is at least 1800 and the these markets were included in the calculation of market concentramerger increases the HHI by at least 200 points. The Justice Depart- tion: ment has stated that the higher than normal HHI thresholds for In the New Bedford market, HNC would control 4.0 percent of the screening bank mergers for anticompetitive effects implicitly recog- market's deposits and SC would control 17.7 percent of the market's nizes the competitive effect of limited-purpose lenders and other deposits. The HHI would increase by 143 points to 1468. nondepository financial entities. In the Hartford banking market, HNC would control 26.0 percent of 9. The Hartford banking market includes: the Hartford RMA minus the market's deposits and SC would control 0.6 percent of the the Tolland County township of Mansfield and the Windham County market's deposits. The HHI would increase by 33 points to 1448. township of Windham, plus the Windham County township of Ash- In the New Haven banking market, HNC would control 13.7 ford, the Hartford County township of Hartland and the Tolland percent of the market's deposits, and SC would control 4.4 percent of County township of Union, and the remaining portions of Plymouth the market's deposits. The HHI would increase by 120 points to 916. and East Haddam not already included in the RMA. In the New London banking market, HNC would control 19.0 10. The New Haven banking market includes the New Haven percent of the market's deposits, and SC would control 0.7 percent of RMA. the market's deposits. The HHI would increase by 26 points to 2302. 11. The New London banking market includes: the New London 14. The Boston banking market includes: the Boston RMA minus RMA plus the Windham County townships of Canterbury, Plainfield the New Hampshire towns of Brentwood, Chester, and Derry, plus and Sterling; the New London County townships of Lyme and the Massachusetts towns of Ayer, Berlin, Groton, Harvard, Pepperell Voluntown and that portion of Hopkington, Rhode Island, not already and Shirley, and those portions of Bellingham, Carver, Lakeville, included in the RMA. Middleboro and Plymouth not already included in the RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 185 zation in the market, controlling 16.2 percent of the CFTRA violations that occurred in 1984 by a branch of deposits in commercial banks in the market. The HHI HNC's lead bank, Connecticut National Bank would increase by 100 points to 1470. ("CNB").17 Subsequent examinations, however, have In the Waterbury banking market,15 HNC is the shown that improved compliance procedures have third largest commercial banking organization, con- been put in place at HNC's subsidiary banks. Based trolling $154 million in deposits, which represents 13.6 upon HNC's overall record, including its commitpercent of the total deposits in that market. SC is the ments to improve its CFTRA procedures, the Board seventh largest commercial banking organization in concluded that the overall managerial considerations the market, controlling $10 million in deposits, which were favorable. The Board noted that the violations at represents 0.9 percent of total deposits in commercial the branch occurred shortly after HNC had acquired banks in the market. Upon consummation of this the bank, but before HNC's own CFTRA reporting proposal, Shawmut would be the third largest com- procedures could be put in place at the bank. The mercial banking organization, controlling 14.5 percent Board had also considered HNC's past record of of the deposits in commercial banks in the market. The compliance with the law in its determination. HHI would increase by only 25 points to 3432. After consummation of the proposals discussed Finally, in the Metropolitan New York-New Jersey above, the Office of the Comptroller of the Currency banking market,16 HNC and SC are two of the smaller ("OCC") discovered additional CFTRA violations at a competitors in the market and will control less than 1 recently acquired subsidiary of HNC. HNC has aspercent of the total deposits in the market following sured the Board that it has implemented extensive consummation of this proposal. CFTRA compliance procedures at all subsidiary On the basis of the above and other facts of record, banks, particularly at the recently acquired bank, the Board finds that consummation of Shawmut's sufficient to resolve these reporting violations. The proposal would not have a significant adverse effect on OCC has conducted an examination of CFTRA comexisting competition in any relevant market. The pliance at HNC's subsidiary banks, including the bank Board also has considered the effects of Shawmut's with the CFTRA violations, and has found that HNC's proposal on probable future competition in markets in overall compliance with CFTRA is satisfactory. In which HNC and SC do not both compete. In light of addition, the Board has consulted with the Department the market concentration and the number of probable of the Treasury regarding these violations, and the future entrants into the markets, the Board concludes Department has informed the Board that it does not that consummation of this proposal would not have a plan to take any civil or criminal enforcement action significant adverse effect on probable future competi- with regard to these additional violations. On the basis tion in any relevant market. of these factors, and all other facts of record, the Board concludes that the managerial resources of The Board previously has indicated that a bank HNC as well as Shawmut and its other proposed holding company should serve as a source of financial subsidiaries are consistent with approval. strength to its subsidiary banks. The Board notes that Shawmut's capital on a pro forma basis is well above In considering the convenience and needs of the the minimum levels in the Board's Capital Adequacy communities to be served, the Board concludes that Guidelines, and that the proposed acquisition involves HNC's and SC's records under the Community Reinan exchange of shares with no assumption of addi- vestment Act ("CRA") are consistent with approval, tional debt. Accordingly, the Board believes the finan- especially in light of HNC's commitment to file regular cial resources of Shawmut and its subsidiaries are reports with the Reserve Bank regarding the CRA consistent with approval of this proposal. activities of one of its subsidiary banks and its com- The Board also has considered Shawmut's and its mitment to strengthen its record with regard to that subsidiaries' managerial resources, particularly with bank through an advertising program and certain other regard to previous violations by HNC of the Currency measures. and Foreign Transactions Reporting Act (31 U.S.C. Shawmut has also applied, pursuant to section § 5311 et seq.) ("CFTRA"). In connection with earlier 4(c)(8) of the Act, to acquire the nonbanking subsidproposals by HNC, the Board reviewed HNC's iaries of HNC and SC. HNC operates subsidiaries that originate and service residential real estate mortgages and that directly compete with subsidiaries of SC. 15. The Waterbury banking market includes: the Waterbury RMA Consummation of the proposal, however, would have minus the Litchfield County township of Plymouth and the New Haven County townships of Beacon Falls and Southbury. 16. The Stamford-Norwalk area is part of Metropolitan New York- New Jersey market and includes: the city of Stamford, plus the 17. See e.g., Hartford National Corporation, 73 FEDERAL RE- Fairfield County townships of Darien, Greenwich, New Canaan, SERVE BULLETIN 752 (1987); Hartford National Corporation, 73 Norwalk, Redding, Ridgefield, Weston, Westport and Wilton. FEDERAL RESERVE BULLETIN 720 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 1988 a de minimis effect on existing competition in each of Shawmut has also applied to acquire HNC's subsidthese markets, and there are numerous competitors for iary Hartford Trust Company, New York, New York these services. Accordingly, the Board concludes that ("Company"), a company engaged in trust activities the proposal would not have any significant adverse pursuant to section 225.25(b)(3) of Regulation Y. Comeffect on existing or probable future competition in any pany does not accept demand deposits or make comrelevant geographic or product market. Furthermore, mercial loans. Because the deposits of Company are there is no evidence,in the record to indicate that insured by the Federal Deposit Insurance Corporation approval of this proposal would result in undue con- ("FDIC"), however, Company became a "bank" centration of resources, decreased or unfair competi- pursuant to the enactment of the Competitive Equality tion, conflicts of interest, unsound banking practices, Banking Act of 1987, Pub. L. No. 100-86, 101 Stat. or other adverse effects on the public interest. Accord- 553 (1987). Because Company is now a "bank" under ingly, the Board has determined that the balance of the Act, its acquisition by Shawmut would be subject public interest factors it must consider under section to the interstate restrictions found in the Douglas 4(c)(8) of the Act is favorable and consistent with Amendment. New York law does not permit a Massaapproval of the applications to acquire the nonbanking chusetts bank holding company, such as Shawmut, to subsidiaries of HNC and SC. acquire a bank in New York. Thus, the Douglas Shawmut has requested the Board's authorization to Amendment would bar Board approval of Shawmut's retain the insurance agency activities of SC's wholly acquisition of Company. To address this problem, owned subsidiary, Shawmut Insurance Agency, Inc., HNC has committed to discontinue the FDIC insurwhich currently engages in the sale of property, casu- ance for the deposits of Company, effective upon alty, credit life and credit accident and health insur- consummation of this proposal. After Company termiance, and mortgage redemption insurance pursuant to nates its insurance, Company will no longer be a exemption D of the Garn-St Germain Depository "bank" under the Act, and Shawmut may acquire Institutions Act of 1982 (the "Garn Act").18 Exemp- Company as a trust company pursuant to section tion D of the Garn Act permits a bank holding com- 225.25(b)(3) of the Board's Regulation Y, as Shawmut pany to engage in "any insurance activity which was has applied to do. engaged in by the bank holding company or any of its Based on the foregoing and other facts of record, the subsidiaries on May 1, 1982." Board has determined that the applications should be, On April 2, 1982, SC obtained approval to acquire and hereby are, approved. The acquisition of HNC Shawmut Insurance Agency, Inc., which was engaged and SC shall not be consummated before the thirtieth in the aforementioned activities on the grandfathered calendar day following the effective date of this Order, date. Accordingly, Shawmut Insurance Agency, Inc., or later than three months after the effective date of is entitled to continue to sell insurance under exemp- this Order, unless such period is extended for good tion D. cause by the Board or by the Federal Reserve Bank of The Board has previously determined in Sovran Boston, acting pursuant to delegated authority. The Financial Corporation, 73 FEDERAL RESERVE BULLE- determinations as to Applicant's nonbanking activities TIN 672 (1987), that an insurance agency which is are subject to all of the conditions contained in Reguentitled to continue to sell insurance under exemption lation Y, including those in sections 225.4(d) and D does not lose its grandfathered rights if the agency is 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), acquired by another bank holding company, provided and to the Board's authority to require such modificathe agency maintains its separate corporate structure tion or termination of the activities of a holding comand its insurance activities are not extended to other pany or any of its subsidiaries as the Board finds subsidiaries within the acquiror's banking organization. necessary to assure compliance with the provisions Shawmut has committed that Shawmut Insurance and purposes of the Act and the Board's regulations Agency, Inc. will remain a separate subsidiary of Shaw- and orders issued thereunder, or to prevent evasion mut, and its insurance activities will not be conducted thereof. by any of SC's other subsidiaries. Accordingly, the By order of the Board of Governors, effective Board has determined to permit Shawmut Insurance January 28, 1988. Agency, Inc., to continue to engage in insurance activities following its acquisition by Shawmut. Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Heller, and Kelley. 18. 12 U.S.C. § 1843(c)(8)(D). Such activities may be conducted in the grandfathered company's home state, states adjacent thereto, or JAMES MCAFEE any state where the company was authorized to operate an insurance business before the grandfather date. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 187 APPENDIX A nating, packaging, selling, and servicing residential mortgages; Shawmut Insurance Agency, Inc., Wor- Nonbanking Subsidiaries to be Acquired cester, Massachusetts, and thereby engage in acting as principal, agent or broker for insurance that is directly Connecticut National Mortgage Company, West Hart- related to an extension of credit by Applicant or any of ford, Connecticut, and thereby engage in making, its subsidiaries and limited to assuring repayment of acquiring, selling or servicing loans or other exten- the outstanding balance due on the extension of credit sions of credit, and acting as insurance agent or broker in the event of death, disability or involuntary unemwith respect to insurance that is directly related to an ployment of the debtor; and acting as principal agent extension of credit; Connecticut National Trust Com- or broker with respect to property and casualty that is pany of Florida, Stuart, Florida, and thereby engage in directly related to extensions of credit by Shawmut performing fiduciary, agency and custody services for Corporation or any of its subsidiaries; Shawmut Life customers in Florida and Connecticut; Hartford Trust Insurance Company, Inc., Phoenix, Arizona, and Company, New York, New York, and thereby engage thereby engage in underwriting, as reinsurer, of credit in performing fiduciary, agency and custody services and life and credit accident and health insurance; for customers in New York and Connecticut; One Shawmut Securities Clearance Corp., New York, Federal Asset Management, Inc., Boston, Massachu- New York, and thereby engage in securities clearance setts, and thereby engage in providing investment or and related and incidental activities; and American financial advice; Shawmut Brokerage Services, Inc., Agcredit Corporation, Fort Worth, Texas, and thereby Boston, Massachusetts, and thereby engage in provid- engage in making, servicing or acquiring loans or other ing securities brokerage services; Shawmut Connecti- extensions of credit to agricultural enterprises or secut Corporation, Hartford, Connecticut, and thereby cured by agricultural commodities. The Board has determined that these activities are closely related to engage in originating, packaging, selling and servicing banking and permissible for bank holding companies. residential mortgages; Shawmut Credit Corporation, 12 C.F.R. §§ 225.23(b)(1), (3), (4), (8), and (15). Boston, Massachusetts, and thereby engage in origi- 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 Applicant Bank(s) Bank date Abbott Bank Group, Inc., Anchor Banshares, Inc., Kansas City January 25, 1988 Alliance, Nebraska Merriam, Nebraska Chadron Banshares, Inc., Chadron, Nebraska Gordon State Banshares, Inc., Gordon, Nebraska Mullen Banshares, Inc., Mullen, Nebraska Thedford Banshares, Inc., Thedford, Nebraska Valentine State Banshares, Inc., Valentine, Nebraska Bridgeport Banshares, Inc., Bridgeport, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Federal Reserve Bulletin • March 1988 Section 3—Continued . t. w x Reserve Effective Applicant Bank(s) Bank date American Bancorporation, Wheeling National Bank, Cleveland January 11, 1988 Wheeling, West Virginia Wheeling, West Virginia Apple Creek Banc Corp., Apple Creek Banking Company, Cleveland January 27, 1988 Apple Creek, Ohio Apple Creek, Ohio Barnett Banks, Inc., First Fulton Bancshares, Inc., Atlanta January 11, 1988 Jacksonville, Florida Palmetto, Georgia Central Bancshares of the South, Weslayan Bancshares, Inc., Atlanta January 15, 1988 Inc., Houston, Texas Birmingham, Alabama Chemical Financial Corporation, First National Bank & Trust, Chicago January 26, 1988 Midland, Michigan Big Rapids, Michigan Comm. Bancorp, Inc., The First National Bank of Philadelphia January 19, 1988 Forest City, Pennsylvania Nicholson, Nicholson, Pennsylvania ComSouth Bankshares, Inc., Commercial Bank of the South, Richmond January 26, 1988 Columbia, South Carolina N.A., Columbia, South Carolina Enterprise Bancorp., Enterprise Bank—West, N.A., Dallas January 26, 1988 Houston, Texas Houston, Texas Exchange International River Oaks Bancorp, Inc., Chicago January 13, 1988 Corporation, Calumet City, Illinois Chicago, Illinois Fentura Bancorp, Inc., State Savings Bank of Fenton, Chicago January 20, 1988 Fenton, Michigan Fenton, Michigan First Community Bancshares, First Rome Bank, Atlanta January 14, 1988 Inc., Rome, Georgia Rome, Georgia First Jones Bancorporation, Inc., First State Bank, Kansas City January 28, 1988 Jones, Oklahoma Jones, Oklahoma First National Cincinnati Peoples Liberty Bancorporation, Cleveland December 31, 1987 Corporation, Covington, Kentucky Cincinnati, Ohio First Nokomis Bancorp, Inc., First National Bank of Nokomis, St. Louis January 15, 1988 Nokomis, Illinois Nokomis, Illinois First Security Bancorp, Inc., Federal Savings Bank of Maryland, Richmond January 13, 1988 Baltimore, Maryland Baltimore, Maryland First Union Corporation, Florida Commercial Banks, Inc., Richmond January 7, 1988 Charlotte, North Carolina Miami, Florida Franklin Financial Services The Mont Alto State Bank, Philadelphia January 15, 1988 Corporation, Mont Alto, Pennsylvania Chambersburg, Pennsylvania Fulton Financial Corporation, Lafayette Trust Bank, Philadelphia January 14, 1988 Lancaster, Pennsylvania Easton, Pennsylvania Inland Bancorp, Inc., American National Bank, Chicago January 13, 1988 Oak Brook, Illinois Downers Grove, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 189 Section 3—Continued r» i / x Reserve Effective AApplicant Bank(s) ^ Bank International Brotherhood of Brotherhood Bank and Trust Co. Kansas City January 11, 1988 Boilermakers, Iron Ship Kansas City, Kansas Builders, Blacksmiths, Forgers and Helpers, Kansas City, Kansas Landmark Bancshares Taney County Bancorporation, St. Louis December 31, 1987 Corporation, Kansas City, Missouri St. Louis, Missouri Landmark Acquisition Corporation, St. Louis, Missouri Landmark Bancshares Eagle Bancorporation, Inc., St. Louis December 31, 1987 Corporation, Highland, Illinois St. Louis, Missouri Landmark Acquisition Corporation II, St. Louis, Missouri Lincoln County Bancorp, Inc., Commerce Bank of Louisiana, St. Louis January 8, 1988 Troy, Missouri N.A., Louisiana, Missouri Long view Capital Corporation, Chrisman Bancshares, Inc., Chicago January 15, 1988 Newman, Illinois Chrisman, Illinois MetroBanCorp, MetroBank, Chicago December 30, 1987 Indianapolis, Indiana Indianapolis, Indiana Metropolitan Bancshares, Inc., Metropolitan Bank, National Richmond January 28, 1988 Washington, D.C. Association, Washington, D.C. Midlothian State Bank Employees Midlothian State Bank, Chicago December 30, 1987 Stock Ownership Plan, Midlothian, Illinois Midlothian, Illinois NCNB Corporation, Charter Bancshares, Inc., Richmond January 20, 1988 Charlotte, North Carolina Houston, Texas Orbisonia Community Bancorp, Community State Bank of Philadelphia January 4, 1988 Inc., Orbisonia, Orbisonia, Pennsylvania Orbisonia, Pennsylvania Peoples Bancorp of Worcester, Peoples Savings Bank, Boston January 28, 1988 Inc., Worcester, Massachusetts Worcester, Massachusetts Portsmouth Bank Shares, Inc., Portsmouth Savings Bank, Boston January 11, 1988 Portsmouth, New Hampshire Portsmouth, New Hampshire First Coastal Banks, Inc., Portsmouth, New Hampshire Security Corporation, American National Bank of Duncan, Kansas City January 12, 1988 Duncan, Oklahoma Duncan, Oklahoma SouthTrust Corporation, First National Bancshares, Inc., Atlanta January 12, 1988 Birmingham, Alabama Jacksonville, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin • March 1988 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Thomas Drilling Company, Exchange Financial Corporation, Kansas City January 12, 1988 Duncan, Oklahoma Ardmore, Oklahoma Charter Bancshares, Inc., Oklahoma City, Oklahoma American National Bank of Duncan, Duncan, Oklahoma Trustcorp, Inc., Citizens Bank, Cleveland January 11, 1988 Toledo, Ohio Indianapolis, Indiana St. Joseph Bancorporation, Inc. South Bend, Indiana Valley Bank Shares, Inc., Brainard Agency Company, Kansas City December 29, 1987 Schuyler, Nebraska Schuyler, Nebraska Platte Valley National Company, Schuyler, Nebraska Decatur Agency Company, Schuyler, Nebraska Emerson First National Company, Schuyler, Nebraska First National Stanton Corporation, Schuyler, Nebraska Arcadia Agency Company, Schuyler, Nebraska Wes-Tenn Bancorp, Inc., Tipton County Bank, St. Louis December 31, 1987 Covington, Tennessee Covington, Tennessee Whitaker Bancorp, Inc., State National Bancorp of Cleveland January 8, 1988 Lexington, Kentucky Frankfort, Inc., Frankfort, Kentucky Will Bancorp, Inc., Williamsville State Bank, Chicago January 12, 1988 Williamsville, Illinois Williamsville, Illinois Section 4 Reserve Effective Applicant Nonbanking Company/Activity Bank date Comerica Incorporated, engage de novo in the issuance and Chicago January 4, 1988 Detroit, Michigan sale of variably denominated payment instruments with a face value of less than $10,000 First Eastern Corporation, Dolphin and Bradbury, Inc., Philadelphia December 31, 1987 Wilkes-Barre, Pennsylvania Philadelphia, Pennsylvania Home State Bancorp, Inc., continue to engage in the extension Chicago January 14, 1988 Crystal Lake, Illinois of credit La Jolla Bancorp, H. D. McNee Realty Advisors, Inc. San Francisco December 30, 1987 La Jolla, California San Diego, California Mason State Company, continue to engage in general Kansas City January 12, 1988 Mason City, Nebraska insurance activities in a town of less than 5,000 persons Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 191 Section 4—Continued Effective Applicant Nonbanking Company/Activity ^Bank^ date MCorp, Management Information Resources, Dallas January 27, 1988 Dallas, Texas Inc., MCorp Financial, Inc., Lubbock, Texas Wilmington, Delaware Menomonie Financial Services, engage de novo in data processing Minneapolis January 22, 1988 Inc., and management consulting Menomonie, Wisconsin activities Peoples Bancorporation, First Finance Company of East Richmond December 31, 1987 Rocky Mount, North Carolina Point, Inc., Atlanta, Georgia Downtown Finance Company, Atlanta, Georgia Apex Investment, Thomasville, Georgia Sun States Finance Company, Athens, Georgia Sun States Finance Company of Orlando, Orlando, Florida Thomas Drilling Company, engage in making, acquiring, or Kansas City January 12, 1988 Duncan, Oklahoma servicing loans or other extensions of credit Valley Bank Shares, Inc., First National Insurance Agency, Kansas City December 29, 1987 Schuyler, Nebraska Stanton, Nebraska the general insurance operations of the following: Brainard Agency Company, Schuyler, Nebraska Decatur Agency Company, Schuyler, Nebraska Arcadia Agency Company, Schuyler, Nebraska Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Royal Windsor Holding Corp., Jefferson Guaranty Bank, Atlanta December 31, 1987 New Orleans, Louisiana Metairie, Louisiana Jefferson Financial Services, Inc., Metairie, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin • March 1988 ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date The ACB Bank, Apple Creek Banking Company, Cleveland January 27, 1988 Apple Creek, Ohio Apple Creek, Ohio Chemical Bank and Trust Auburn Michigan Branch of Chicago January 15, 1988 Company, Chemical Bank Bay Area, Midland, Michigan Bay City, Michigan First Nebraska Bank, First Nebraska Bank, Kansas City December 29, 1987 Valley, Nebraska Brainard, Nebraska First Nebraska Bank, N.A., Columbus, Nebraska First Nebraska Bank, Decatur, Nebraska First Nebraska Bank, N.A., Emerson, Nebraska First Nebraska Bank, N.A., Stanton, Nebraska First of America Bank—Straits First of America Bank—Sault Ste. Chicago January 20, 1988 Area, Marie, National Association, Cheboygan, Michigan Saulte Ste. Marie, Michigan The Toledo Trust Company, Trustcorp Company, National Cleveland January 26, 1988 Toledo, Ohio Association, Columbus, Ohio Trustcorp Company, Dayton, Dayton, 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- Citicorp v. Board of Governors, No. 87-1475 (D.C. nors, No. 87-4161 (2d Cir., filed Dec. 15, 1987). Cir., filed Sept. 9, 1987). Independent Insurance Agents of America, Inc. v. Securities Industry Association v. Board of Gover- Board of Governors, No. 87-1686 (D.C. Cir., filed nors, No. 87-4115 (2d Cir., filed Sept. 9, 1987). Nov. 19, 1987). National Association of Casualty and Surety Agents, Barrett v. Volcker, No. 87-2280 (D.D.C., filed Aug. et al., v. Board of Governors, Nos. 87-1644, 17, 1987). 87-1801, 88-1001 (D.C. Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, 1988). Northeast Bancorp v. Board of Governors, No. Teichgraeber v. Board of Governors, No. 87-2505-0 87-1365 (D.C. Cir., filed July 31, 1987). (D. Kan., filed Oct. 16, 1987). National Association of Casualty & Insurance Agents Securities Industry Association v. Board of Goverv. Board of Governors, Nos. 87-1354, 87-1355 (D.C. nors, No. 87-4135 (2d Cir., filed Oct. 8, 1987). Cir., filed July 29, 1987). Independent Insurance Agents of America, Inc. v. Board of Governors, No. 87-4118 (2d Cir., filed- The Chase Manhattan Corporation v. Board of Gov- Sept. 17, 1987). ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 193 Securities Industry Association v. Board of Gover Independent Community Bankers Association of nors, Nos. 87-4091, 87-4093, 87-4095 (2d Cir., filed South Dakota v. Board of Governors, No. 86-5373 July 1 and July 15, 1987). (8th Cir., filed Oct. 3, 1986). Lewis v. Board of Governors, Nos. 87-3455, 87-3545 Jenkins v. Board of Governors, No. 86-1419 (D.C. Cir., filed July 18, 1986). (11th Cir., filed June 25, Aug. 3, 1987). CBC, Inc. v. Board of Governors, No. 86-1001 (10th Securities Industry Association v. Board of Gover- Cir., filed Jan. 2, 1986). nors, et al. No. 87-4041 and consolidated cases (2d Urwyler, et al. v. Internal Revenue Service, et al., No. Cir., filed May 1, 1987). 85-2877 (9th Cir., filed July 18, 1985). Securities Industry Association v. Board of Gover- Wight, et al. v. Internal Revenue Service, et al., No. nors, et al., No. 87-1169 (D.C. Cir., filed April 17, 85-2826 (9th Cir., filed July 12, 1985). 1987). Brown v. United States Congress, et al., No. Independent Insurance Agents of America, et al. v. 84-2887-6(IG) (S.D. Cal., filed Dec. 7, 1984). Board of Governors, Nos. 86-1572, 1573, 1576 Melcher v. Federal Open Market Committee, No. (D.C. Cir., filed Oct. 24, 1986). 86-5692 (D.C. Cir., filed April 30, 1984). 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 A26 Selected financial institutions—Selected assets POLICY INSTRUMENTS and liabilities A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions FEDERAL FINANCE A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays FEDERAL RESERVE BANKS A30 Federal debt subject to statutory limitation A30 Gross public debt of U.S. Treasury—Types and A10 Condition and Federal Reserve note statements ownership All Maturity distribution of loan and security A31 U.S. government securities dealers— holdings Transactions A32 U.S. government securities dealers—Positions and financing MONETARY AND CREDIT AGGREGATES A33 Federal and federally sponsored credit agencies—Debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock, liquid assets, and debt measures SECURITIES MARKETS AND A15 Bank debits and deposit turnover CORPORATE FINANCE A16 Loans and securities—All commercial banks A34 New security issues—State and local governments and corporations COMMERCIAL BANKING INSTITUTIONS A35 Open-end investment companies—Net sales and asset position A17 Major nondeposit funds A35 Corporate profits and their distribution A18 Assets and liabilities, last-Wednesday-of-month A36 Nonfinancial corporations—Assets and series liabilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • March 1988 A36 Total nonfarm business expenditures on new A54 U.S. reserve assets plant and equipment A54 Foreign official assets held at Federal Reserve A37 Domestic finance companies—Assets and Banks liabilities and business credit A55 Foreign branches of U.S. banks—Balance sheet data A57 Selected U.S. liabilities to foreign official REAL ESTATE institutions A38 Mortgage markets A39 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES A57 Liabilities to and claims on foreigners CONSUMER INSTALLMENT CREDIT A58 Liabilities to foreigners A60 Banks' own claims on foreigners A40 Total outstanding and net change A61 Banks' own and domestic customers' claims on A41 Terms foreigners A61 Banks' own claims on unaffiliated foreigners A62 Claims on foreign countries—Combined FLOW OF FUNDS domestic offices and foreign branches A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit REPORTED BY NONBANKING BUSINESS markets ENTERPRISES IN THE UNITED STATES A63 Liabilities to unaffiliated foreigners Domestic Nonfinancial Statistics A64 Claims on unaffiliated foreigners SELECTED MEASURES SECURITIES HOLDINGS AND TRANSACTIONS A44 Nonfinancial business activity—Selected A65 Foreign transactions in securities measures A66 Marketable U.S. Treasury bonds and notes— A45 Labor force, employment, and unemployment Foreign transactions A46 Output, capacity, and capacity utilization A47 Industrial production—Indexes and gross value A49 Housing and construction INTEREST AND EXCHANGE RATES A50 Consumer and producer prices A51 Gross national product and income A67 Discount rates of foreign central banks A52 Personal income and saving A67 Foreign short-term interest rates A68 Foreign exchange rates International Statistics A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables SUMMARY STATISTICS A53 U.S. international transactions—Summary A54 U.S. foreign trade Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)' Item 1987 Ql Q2 Q3 Q4 Aug. Sept. Oct. Nov/ Dec. Reserves of depository institutions 1 Total 16.4 8.0 -1.6 1.4 5.7 -1.0 13.9 -10.4 -11.4 2 Required 16.5 8.4 -.5 .3 .1 4.0 7.1 -6.4 -13.8 3 Nonborrowed 18.5 5.4 -.4 1.2 6.3 -7.2 14.1 -4.0 -14.7 4 Monetary base3 11.3 6.8 4.7 8.0 6.5 5.0 11.9 8.1 2.9 Concepts of money, liquid assets, and debt4 5 Ml 13.1 6.4 -.1' 3.7 5.5' .3 15.2' -6.5 -5.7 6 M2 6.4 2.3 3.0' 4.3 6.2' 5.5' 7.0' -.6 1.9 7 M3 6.5 4.3 4.8' 5.7 6.9' 5.5' 7.8' 4.3 1.5 8 L 6.2 3.3' 4.1' n.a. 7.4' 8.1' 10.1' 4.0 n.a. 9 Debt 10.5'' 8.7' 8.1' 9.2 7.7 9.0r 9.7' 10.6 n.a. Nontransaction components 10 In M2y 4.1 .9 4.1' 4.6 6.6' 7.3' 4.1' 1.5 4.5 11 In M3 only6 6.6 12.2 11.8 11.1 9.3 5.7' 10.8' 23.0 .2 Time and savings deposits Commercial banks 12 Savings 37.3 24.1 7.8 -.5 9.5 .0 -3.4 -3.4 2.0 13 Small-denomination time® -4.9 -4.6 8.0 15.4 6.6 6.2 18.6 25.1 12.3 14 Large-denomination time • 9.7 18.3 4.1 9.2 .0 -.4 13.0 21.6 .7 Thrift institutions 15 Savings 27.3 25.9 7.1 -8.8 8.5 -2.5 -9.9 -22.1 -8.2 16 Small-denomination time -4.2 1.0 10.1' 16.2 12.1 9.8' 13.1' 25.2 21.9 17 Large-denomination time9 -9.5 -8.4 10.7 24.3 13.5 17.2 29.4 27.2 24.3 Debt components* 18 Federal 12.2 8.8 5.9 7.4 8.8 6.5 3.9 12.6 n.a. 19 Nonfederal . io.(y 8.7' 8.8' 9.7 7.4 9.8' 11.5' 10.0 n.a. 20 Total loans and securities at commercial banks 10.1 7.0 5.7 6.5' 10.8 9.7 10.2' -1.1 -.3 1. Unless otherwise noted, rates of change are calculated from average commercial banks, money market funds (general purpose and broker-dealer), amounts outstanding in preceding month or quarter. foreign governments and commercial banks, and the U.S. government. Also 2. Figures incorporate adjustments for discontinuities associated with the subtracted is a consolidation adjustment that represents the estimated amount of implementation of the Monetary Control Act and other regulatory changes to demand deposits and vault cash held by thrift institutions to service their time and reserve requirements. To adjust for discontinuities due to changes in reserve savings deposits. requirements on reservable nondeposit liabilities, the sum of such required M3: M2 plus large-denomination time deposits and term RP liabilities (in reserves is subtracted from the actual series. Similarly, in adjusting for discon- amounts of $100,000 or more) issued by commercial banks and thrift institutions, tinuities in the monetary base, required clearing balances and adjustments to term Eurodollars held by U.S. residents at foreign branches of U.S. banks compensate for float also are subtracted from the actual series. worldwide and at all banking offices in the United Kingdom and Canada, and 3. The monetary base not adjusted for discontinuities consists of total balances in both taxable and tax-exempt, institution-only money market mutual reserves plus required clearing balances and adjustments to compensate for float funds. Excludes amounts held by depository institutions, the U.S. government, at Federi Reserve Banks plus the currency component of the money stock less money market funds, and foreign banks and official institutions. Also subtracted the amount of vault cash holdings of thrift institutions that is included in the is a consolidation adjustment that represents the estimated amount of overnight currency component of the money stock plus, for institutions not having required RPs and Eurodollars held by institution-only money market mutual funds. reserve balances, the excess of current vault cash over the amount applied to L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term satisfy current reserve requirements. After the introduction of contemporaneous Treasury securities, commercial paper and bankers acceptances, net of money reserve requirements (CRR), currency and vault cash figures are measured over market mutual fund holdings of these assets. the weekly computation period ending Monday. Debt: Debt of domestic nonfinancial sectors consists of outstanding credit Before CRR, all components of the monetary base other than excess reserves market debt of the U.S. government, state and local governments, and private are seasonally adjusted as a whole, rather than by component, and excess nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conreserves are added on a not seasonally adjusted basis. After CRR, the seasonally sumer credit (including bank loans), other bank loans, commercial paper, bankers adjusted series consists of seasonally adjusted total reserves, which include acceptances, and other debt instruments. The source of data on domestic excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt currency component of the money stock plus the remaining items seasonally data are based on monthly averages. Growth rates for debt reflect adjustments for adjusted as a whole. discontinuities over time in the levels of debt presented in other tables. 4. Composition of the money stock measures and debt is as follows: 5. Sum of overnight RPs and Eurodollars, money market fund balances Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults (general purpose and broker-dealer), MMDAs, and savings and small time of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits deposits less the estimated amount of demand deposits and vault cash held by at all commercial banks other than those due to domestic banks, the U.S. thrift institutions to service their time and savings deposit liabilities. government, and foreign banks and official institutions less cash items in the 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, process of collection and Federal Reserve float; and (4) other checkable deposits money market fund balances (institution-only), less a consolidation adjustment (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer that represents the estimated amount of overnight RPs and Eurodollars held by service (ATS) accounts at depository institutions, credit union share draft institution-only money market mutual funds. accounts, and demand deposits at thrift institutions. The currency and demand 7. Excludes MMDAs. deposit components exclude the estimated amount of vault cash and demand 8. Small-denomination time deposits—including retail RPs—are those issued deposits respectively held by thrift institutions to service their OCD liabilities. in amounts of less than $100,000. All IRA and Keogh accounts at commercial M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) banks and thrifts are subtracted from small time deposits. issued by all commercial banks and overnight Eurodollars issued to U.S. residents 9. Large-denomination time deposits are those issued in amounts of $100,000 by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts or more, excluding those booked at international banking facilities. (MMDAs), savings and small-denomination time deposits (time deposits—includ- 10. Large-denomination time deposits at commercial banks less those held by ing retail RPs—in amounts of less than $100,000), and balances in both taxable and money market mutual funds, depository institutions, and foreign banks and tax-exempt general purpose and broker-dealer money market mutual funds. official institutions. Excludes individual retirement accounts (IRA) and Keogh balances at depository 11. Changes calculated from figures shown in table 1.23. institutions and money market funds. Also excludes all balances held by U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • March 1988 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 1987 1987 Oct. Nov. Dec. Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 241,841 240,088 245,975 241,638 239,081 243,387 244,787 245,050 244,657 247,325 2 U.S. government securities' 214,787 214,695 219,761 215,319 215,088 217,842 219,734 219,006 219,179 220,447 3 Bought outright 210,822 213,706 218,734 214,381 215,088 215,207 219,312 219,006 219,179 218,704 4 Held under repurchase agreements.... 3,965 989 1,027 938 0 2,635 422 0 0 1,743 5 Federal agency obligations 8,747 7,956 8,062 8,090 7,567 8,901 7,623 7,558 7,556 8,529 6 Bought outright 7,601 7,567 7,559 7,567 7,567 7,567 7,567 7,558 7,556 7,555 7 Held under repurchase agreements 1,146 389 503 523 0 1,334 56 0 0 974 8 Acceptances 0 0 0 0 0 0 0 0 0 0 9 Loans 959 610 836 605 681 684 754 875 586 755 10 Float 751 866 1,545 1,595 686 674 913 1,942 1,123 1,580 11 Other Federal Reserve assets 16,597 15,961 15,771 16,029 15,059 15,287 15,764 15,668 16,212 16,013 12 Gold stock2 11,084 11,084 11,080 11,085 11,083 11,083 11,082 11,081 11,080 11,079 13 Special drawing rights certificate account.. 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 14 Treasury currency outstanding 18,028 18,102 18,153 18,101 18,115 18,128 18,138 18,148 18,158 18,168 ABSORBING RESERVE FUNDS 15 Currency in circulation^ 218,734 223,078 227,366 223,539 223,662 225,013 225,718 226,447 227,672 229,746 16 Treasury cash holdings"* 470 471 455 474 472 465 455 454 454 454 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 8,828 3.755 4,209 3,836 3.325 3,403 3,792 4,817 4,219 3,719 18 Foreign 259 299 233 261 279 365 223 233 240 192 19 Service-related balances and adjustments 2,029 2,063 2,168 2,017 1,845 2,290 1,914 2,128 1,960 2,269 20 Other 402 374 366 346 336 484 328 321 326 377 21 Other Federal Reserve liabilities and capital 7,236 7,418 7,443 7.336 7,192 7,605 7,627 7,306 7,270 7,468 22 Reserve balances with Federal Reserve Banks3 38,014 36,834 37,986 38,033 36,187 37,991 38,969 37,591 36,772 37,366 End-of-month figures Wednesday figures 1987 1987 Oct. Nov. Dec. Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 246,896 245,472 251,883 237,916 239,681 250,180 244,741 245,729 244,963 250,948 24 U.S. government securities' 217,614 218,960 222,551 213,000 215,532 221,651 219,158 216,715 219,049 222,383 25 Bought outright 209,319 213,563 218,906 212,810 215,532 214,479 219,158 216,715 219,049 218,549 26 Held under repurchase agreements.... 8.295 5,397 3,645 190 0 7,172 0 0 0 3,834 27 Federal agency obligations 10,483 9,844 8,869 7,947 7,567 11,643 7,567 7,556 7,556 9,349 28 Bought outright 7,567 7,567 7,553 7,567 7,567 7,567 7,567 7,556 7,556 7,553 29 Held under repurchase agreements.... 2,916 2,277 1,316 380 0 4,076 0 0 0 1,796 30 Acceptances 0 0 0 0 0 0 0 0 0 0 31 Loans 587 790 3,815 662 602 630 817 836 492 951 32 Float 609 428 811 1,525 975 351 1,276 4,560 1,951 2,011 33 Other Federal Reserve assets 17,603 15,450 15,837 14,782 15,005 15,905 15,923 16,062 15,915 16,254 3 3 4 5 G Sp o e ld c ia s l t o d c r k a " w ing rights certificate account.. 1 5 1 , , 0 0 1 8 8 5 1 5 1 , , 0 0 1 8 8 2 1 5 1 , , 0 0 1 7 8 8 1 5 1 , , 0 0 1 8 8 3 1 5 1 , , 0 0 1 8 8 3 1 5 1 , , 0 0 1 8 8 3 1 5 1 , , 0 0 1 8 8 2 1 5 1 , , 0 0 1 8 8 1 1 5 1 , , 0 0 1 7 8 9 1 5 1 , , 0 0 1 7 8 8 36 Treasury currency outstanding 18,058 18,127 18,177 18,113 18,127 18,137 18,147 18,157 18,167 18,177 ABSORBING RESERVE FUNDS 37 Currency in circulation^ 219,842 225,090 230,205 223,545 224,677 225,542 226,316 226,880 229,224 230,400 38 Treasury cash holdings2 467 465 454 473 466 464 454 454 454 454 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 8,898 3,594 5,313 2,921 2,767 4,850 4,581 9,036 2,992 4,773 40 Foreign 236 352 244 194 261 502 210 270 215 207 41 Service-related balances and adjustments 1,733 1.717 1,687 1,735 1,718 1,717 1,706 1,699 1,697 1,699 42 Other 477 450 1,027 310 482 352 344 359 293 364 43 Other Federal Reserve liabilities and capital 7,950 7,968 7,129 7,039 7,068 7,877 7,122 7,095 7,0% 7,453 44 Reserve balances with Federal Reserve Banks1 41,454 40,064 40,097 35,914 36,470 43,114 38,255 34,192 37,256 39,871 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 1987 Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. 1 Reserve balances with Reserve Banks1 21,738 27,620 37,360 36,466 36,309 36,110 35,616 36,685 37,249 37,249 2 Total vault cash 22,313 22,953 24,071 23,693 24,380 24,631 24,649 24,860 25,596 25,596 3 Vault3 18,958 20,522 22,199 21,873 22,475 22,728 22,745 23,128 23,857 23,857 4 Surplus4 3,355 2,431 1,872 1,820 1,905 1,903 1,904 1,732 1,739 1,739 5 Total reserves 40,696 48,142 59,560 58,339 58,784 58,838 58,361 59,813 61,106 61,106 6 Required reserves 39,843 47,085 58,191 57,260 57,594 58,078 57,329 59,020 59,977 59,977 7 Excess reserve balances at Reserve Banks 853 1,058 1,369 1,079 1,190 761 1,032 793 1,128 1,129 8 Total borrowings at Reserve Banks 3,186 1,318 827 1,035 776 672 647 940 948 943 9 Seasonal borrowings at Reserve Banks 113 56 38 196 259 283 279 231 189 189 10 Extended credit at Reserve Banks 2,604 499 303 288 273 194 132 409 449 449 Biweekly averages of daily figures for weeks ending 1987 Aug. 26 Sept. 9 Sept. 23 Oct. 7 Oct. 21 Nov. 18 Dec. 2 Dec. 16 Dec. 30 11 Reserve balances with Reserve Banks' ... 35,173 36,294 36,866 36,826 36,672 38,353 37,525 37,069 38,272 37,055 12 Total vault cash 25,074 24,288 25,146 25,026 26,183 25,174 25,188 25,802 25,372 26,960 13 Vault3 23.115 22,446 23,475 23,313 24,410 23,464 23,622 23,999 23,824 25,105 14 Surplus4.. 1,959 1,842 1,672 1,713 1,773 1,710 1,566 1,803 1,549 1,855 15 Total reserves 58,288 58,740 60,340 60,139 61,082 61,817 61,147 61,068r 62,095 62,160 16 Required reserves 57.116 57,546 59,825 59,306 60,115 60,256 60,665 59,855 60,890 61,354 17 Excess reserve balances at Reserve Banks' 1,173 1,194 515 833 967 1,561 492 1,213 1,206 806 18 Total borrowings at Reserve Banks 719 647 1,001 1,195 1,007 677 561 683 815 671 19 Seasonal borrowings at Reserve Banks . 286 241 226 230 183 169 125 114 83 102 20 Extended credit at Reserve Banks 128 173 531 469 482 390 334 465 653 316 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 useu 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. 4. Total vault cash at institutions having no required reserve balances less the short-term adjustment credit, the money market impact of extended credit is amount of vault cash equal to their required reserves during the maintenance similar to that of nonborrowed reserves. period. 8. Before February 1984, data are prorated monthly averages of weekly 5. Total reserves not adjusted for discontinuities consist of reserve balances averages; beginning February 1984, data are prorated monthly averages of with Federal Reserve Banks, which exclude required clearing balances and biweekly averages. adjustments to compensate for float, plus vault cash used to satisfy reserve NOTE. These data also appear in the Board's H.3 (502) release. For address, see requirements. Such vault cash consists of all vault cash held during the lagged inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • March 1988 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1987 week ending Monday Maturity and source July 20 July 27 Aug. 3 Aug. 10 Aug. 17 Aug. 24 Aug. 31 Sept. 7 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 69,704 68,682 68,983 72,747 71,952 69,808 70,480 75,786 2 For all other maturities 8,626 8,829 9,624 9,252 8,970 9,098 9,442 9,171 From other depository institutions, foreign banks and foreign official institutions, and United States government agencies 3 For one day or under continuing contract 31,478 31,316 32,783 32,923 32,524 30,368 30,994 29,160 4 For all other maturities 7,384 7,122 7,206 6,753 6,517 6,387 6,622 6,160 Repurchase agreements on U.S. government and federal agency securities in immediately available funds Brokers and nonbank dealers in securities 5 For one day or under continuing contract 11,515 13,115 13,711 13,744 12,715 12,756 13,002 13,332 6 For all other maturities 10,797 11,725 12,209 12,363 12,546 13,455 13,619 13,880 All other customers 7 For one day or under continuing contract 26,375 26,482 27,082 27,417 27,613 27,496 27,128 26,288 8 For all other maturities 8,373 8,363 8,123 8,165 8,550 9,188 9,657 9,120 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 31,101 28,293 29,247 30,410 29,547 28,622 29,053 30,568 10 To all other specified customers 13,109 13,347 13,690 12,886 11,853 13,676 14,024 14,062 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 A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels AAddjjuussttmmeenntt CCrreeddiitt Extended Credit2 aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall CCrreeddiitt11 First 30 days of Borrowing After 30 days of Borrowing3 BBBaaannnkkk 1/ O 27 n /8 8 Ef D fe a c t t e i ve Pr R ev a i t o e u s 1/ O 27 n /8 8 Ef D fe a c t t e i ve Pr R ev a i t o e us 1/2 O 7 n /8 8 Ef D fe a c t t e i ve Pr R ev a i t o e u s Effective Date Boston 6 9/9/87 5Vi 6 9/9/87 5W 7.45 1/14/88 7.70 12/31/87 New York 9/4/87 9/4/87 1/14/88 12/31/87 Philadelphia 9/4/87 9/4/87 1/14/88 12/31/87 Cleveland 9/4/87 9/4/87 1/14/88 12/31/87 Richmond 9/5/87 9/5/87 1/14/88 12/31/87 Atlanta 9/4/87 9/4/87 1/14/88 12/31/87 Chicago 9/4/87 9/4/87 1/14/88 12/31/87 St. Louis 9/9/87 9/9/87 1/14/88 12/31/87 Minneapolis 9/8/87 9/8/87 1/14/88 12/31/87 Kansas City 9/4/87 9/4/87 1/14/88 12/31/87 Dallas 9/11/87 9/11/87 1/14/88 12/31/87 San Francisco ... 6 9/9/87 5 Vi 6 9/9/87 5Vi 7.45 1/14/88 7.70 12/31/87 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o a f n k Effective A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1980-—July 78 10-11 10 1984—Apr. 9 8W-9 9 1978—Ian. 9 6-6 W 6Vz 79 10 10 13 9 9 20 6W 6W Sept. 76 11 11 Nov. 21 8 Vi-9 8W May 11 evi-i 1 Nov. 17 12 12 26 m m 12 7 1 Dec. 5 12-13 13 Dec. 24 8 8 July 3 7-7V4 7W 10 7V4 7V4 1981-——MMaayy 5 13-14 14 1985—May 20 7W-8 7 Vi Aug. 21 73/4 m 8 14 14 24 IVi IVi Sept. 22 8 8 Nov. 7 13-14 13 Oct. 16 8-8W 8 Vi 6 . 13 13 1986—Mar. 7 1-lVi 7 20 8W m Dec. 4 . 12 12 10 7 7 Nov. 1 8W-9W 9Vi Apr. 21 6W-7 6W 3 9 Vi m 1982---JJuullyy 70 11 VI—12 NW July 11 6 6 73 IM 1 M Aug. 12 5W-6 5W 1979—July 20 10 10 Aug. 7 11-1 \Vz 11 22 SV2 5 Vi Aug. 17 10-10W LOW 3 . 11 11 20 10 W 10W 16 10 Vi 10W 1987—Sept. 4 51/2-6 6 Sept. 19 10W-11 11 77 IO-IOW 10 11 6 6 21 11 11 30 . 10 10 Oct. 8 11-12 12 Oct. I? . 9W-10 9V2 IInn eeffffeecctt JJaannuuaarryy 2277,, 11998888 6 6 10 12 12 13 . 9 Vl 9W Nov. 77 9-9 Vi 9 1980—Feb. 15 12-13 13 76 9 9 19 13 13 Dec. 14 m-9 9 May 29 12-13 13 15 m-9 8 W 30 12 12 17 8W 8W June 13 11-12 11 16 11 11 1. Adjustment credit is available on a short-term basis to help depository somewhat above rates on market sources of funds ordinarily will be charged, but institutions meet temporary needs for funds that cannot be met through reason- in no case will the rate charged be less than the basic discount rate plus 50 basis able alternative sources. After May 19,1986, the highest rate established for loans points. The flexible rate is re-established on the first business day of each to depository institutions may be charged on adjustment credit loans of unusual two-week reserve maintenance period. At the discretion of the Federal Reserve size that result from a major operating problem at the borrower's facility. Bank, the time period for which the basic discount rate is applied may be Seasonal credit is available to help smaller depository institutions meet regular, shortened. seasonal needs for funds that cannot be met through special industry lenders and 4. For earlier data, see the following publications of the Board of Governors: that arise from a combination of expected patterns of movement in their deposits Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical and loans. A temporary simplified seasonal program was established on Mar. 8, Digest, 1970-1979. 1985, and the interest rate was a fixed rate Vi percent above the rate on adjustment In 1980 and 1981, the Federal Reserve applied a surcharge to short-term credit. The program was re-established on Feb. 18, 1986 and again on Jan. 28, adjustment credit borrowings by institutions with deposits of $500 million or more 1987; the rate may be either the same as that for adjustment credit or a fixed rate that had borrowed in successive weeks or in more than 4 weeks in a calendar Vi percent higher. quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7, 2. Extended credit is available to depository institutions, where similar assis- 1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was tance is not reasonably available from other sources, when exceptional circum- adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and stances or practices involve only a particular institution or when an institution is to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective experiencing difficulties adjusting to changing market conditions over a longer Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the period of time. formula for applying the surcharge was changed from a calendar quarter to a moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. 3. For extended-credit loans outstanding more than 30 days, a flexible rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • March 1988 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the Monetary Control Act Type of deposit, and deposit interval Percent of Effective date deposits Net transaction accounts • $0 million-$40.5 million 12/30/86 More than $40.5 million ... 12/30/86 Nonpersonal time deposits5 By original maturity Less than 1 Vz years 3 10/6/86 1 Vi years or more 0 10/6/83 Eurocurrency liabilities All types 3 11/13/80 1. Reserve requirements in effect on Dec. 31, 1987. 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. Nonmem- other transaction accounts, the exemption applies only to such accounts that bers may maintain reserve balances with a Federal Reserve Bank indirectly on a would be subject to a 3 percent reserve requirement. pass-through basis with certain approved institutions. For previous reserve 3. Transaction accounts include all deposits on which the account holder is requirements, see earlier editions of the Annual Report and of the FEDERAL permitted to make withdrawals by negotiable or transferable instruments, pay- RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository ment orders of withdrawal, and telephone and preauthorized transfers in excess of institutions include commercial banks, mutual savings banks, savings and loan three per month for the purpose of making payments to third persons or others. associations, credit unions, agencies and branches of foreign banks, and Edge However, MMDAs and similar accounts subject to the rules that permit no more 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. 29, increase in the total reservable liabilities of all depository institutions, measured 1987, the amount was increased from $36.7 million to $40.5 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. 15, 1987, the exemption was raised from $2.9 deposits, that are not transaction accounts and in which a beneficial interest is million to $3.2 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 TRANSACTIONS1 Millions of dollars 1987 TTyyppee ooff ttrraannssaaccttiioonn 11998844 11998855 11998866 May June July Aug. Sept. Oct. Nov. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 20,036 22,214 22,602 1,697 575 575 499 4,528 1,095 3,388 2 Gross sales 8,557 4,118 2,502 0 22 912 0 0 300 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 7,700 3,500 1,000 0 0 4,572 0 3,657 0 0 Others within 1 year 5 Gross purchases 1,126 1,349 190 0 535 0 0 443 300 670 6 Gross sales 0 0 0 0 0 0 0 300 0 0 7 Maturity shift 16,354 19,763 18,673 4,063 1,715 1,437 2,723 1,500 816 2,247 8 Exchange -20,840 -17,717 -20,179 -1,336 -1,812 -613 -1,787 -917 -1,178 -3,728 9 Redemptions 0 0 0 0 0 0 0 * 0 70 1 to 5 years 10 Gross purchases 1,638 2,185 893 0 1,394 0 5 2,551 0 50 11 Gross sales 0 0 0 0 0 200 0 0 0 0 12 Maturity shift -13,709 -17,459 -17,058 -1,804 -1,715 -1,397 -2,122 -1,500 -761 -1,900 13 Exchange 16,039 13,853 16,984 1,111 1,812 613 1,612 917 1,178 3,278 5 to 10 years 14 Gross purchases 536 458 236 0 312 0 0 619 0 0 15 Gross sales 300 100 0 0 0 0 0 0 0 0 16 Maturity shift -2,371 -1,857 -1,620 -2,259 0 -40 -601 0 -55 -347 17 Exchange 2,750 2,184 2,050 150 0 0 100 0 0 300 Over 10 years 18 Gross purchases 441 293 158 0 251 0 0 493 0 0 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 75 0 0 75 0 0 150 All maturities 22 Gross purchases 23,776 26,499 24,078 1,697 3,066 575 504 8,633 1,395 4,108 23 Gross sales 8,857 4,218 2,502 0 22 1,112 0 300 300 0 24 Redemptions 7,700 3,500 1,000 0 0 4,572 0 3,657 0 70 Matched transactions 25 Gross sales 808,986 866,175 927,997 91,642 87,228 80,304 60,731 61,321 77,497 85,288 26 Gross purchases 810,432 865,968 927,247 92,137 87,128 80,037 62,594 61,347 73,779 85,494 Repurchase agreements2 27 Gross purchases 127,933 134,253 170,431 59,340 24,167 3,298 9,013 34,080 65,675 15,853 28 Gross sales 127,690 132,351 160,268 73,111 22,108 2,058 12,311 34,080 57,380 18,751 29 Net change in U.S. government securities 8,908 20,477 29,989 -11,580 5,002 -4,136 -931 4,702 5,673 1,346 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 * 0 59 0 0 56 1 Repurchase agreements2 33 Gross purchases 11,509 22,183 31,142 16,071 3,907 929 2,369 7,174 18,523 6,786 34 Gross sales 11,328 20,877 30,522 19,428 2,910 996 3,298 7,174 15,607 7,425 35 Net change in federal agency obligations -76 1,144 222 -3,357 997 -126 -929 0 2,860 -640 BANKERS ACCEPTANCES 36 Repurchase agreements, net -418 0 0 0 0 0 0 0 0 0 37 Total net change in System Open Market Account 8,414 21,621 30,211 -14,936 5,999 -4,262 -1,861 4,702 8,533 706 1. Sales, redemptions, and negative figures reduce holdings of the System Open 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers Market Account; all other figures increase such holdings. Details may not add to acceptances in repurchase agreements, totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancial Statistics • March 1988 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1987 1987 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Oct. Nov. Dec. Consolidated condition statement ASSETS 1 Gold certificate account 11,083 11,082 11,081 11,079 11,078 11,085 11,082 11,078 2 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 3 Coin 435 433 395 434 413 461 446 408 Loans 4 To depository institutions 630 817 836 492 951 587 790 3,815 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements ... 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 7,567 7,567 7,556 7,556 7,553 7,567 7,567 7,553 8 Held under repurchase agreements 4,076 0 0 0 1,796 2,916 2,277 1,316 U.S. Treasury securities Bought outright 9 Bills 107,373 107,943 105,500 107,834 107,334 102,863 106,457 107,691 10 Notes 79,345 82,973 82,973 82,973 82,973 78,844 79,345 82,973 11 Bonds 27,761 28,242 28,242 28,242 28,242 27,612 27,761 28,242 12 Total bought outright2 214,479 219,158 216,715 219,049 218,549 209,319 213,563 218,906 13 Held under repurchase agreements 7,172 0 0 0 3,834 8,295 5,397 3,645 14 Total U.S. Treasury securities 221,651 219,158 216,715 219,049 222,383 217,614 218,960 222,551 15 Total loans and securities 233,924 227,542 225,107 227,097 232,683 228,684 229,594 235,235 16 Items in process of collection 6,313 6,871 12,261 8,839 7,973 7,197 4,901 7,990 17 Bank premises 698 699 699 698 704 698 698 705 Other assets 18 Denominated in foreign currencies3 8,021 7,974 7,896 7,884 7,757 8,268 8,064 7,773 19 All other 7,186 7,250 7,467 7,333 7,793 8,637 6,688 7,359 20 Total assets 272,678 266,869 269,924 268,382 273,419 270,048 266,491 275,566 LIABILITIES 21 Federal Reserve notes 208,304 209,056 209,572 211,945 213,090 202,712 207,873 212,890 Deposits 22 To depository institutions 44,831 39,961 35,891 38,953 41,570 43,187 41,781 41,784 23 U.S. Treasury—General account 4,850 4,581 9,036 2,992 4,773 8,898 3,594 5,313 24 Foreign—Official accounts 502 210 270 215 207 236 352 244 25 Other 352 344 359 293 364 477 450 1,027 26 Total deposits 50,535 45,096 45,556 42,453 46,914 52,798 46,177 48,368 27 Deferred credit items 5,962 5,595 7,701 6,888 5,962 6,588 4,473 7,179 28 Other liabilities and accrued dividends5 3,109 2,717 2,698 2,691 3,053 3,134 2,985 3,035 29 Total liabilities 267,910 262,464 265,527 263,977 269,019 265,232 261,508 271,472 CAPITAL ACCOUNTS 3301 CSuarppitlauls paid in 2 1 , , 0 8 3 7 1 3 2 1 , , 0 8 3 7 2 3 2 1 , , 0 8 3 7 3 3 2 1 , , 0 8 4 7 5 3 2 1 , , 0 8 4 7 5 3 2 1 , , 0 8 1 7 9 3 2 1 , , 0 8 3 7 2 3 2 2 , , 0 0 4 4 7 7 864 500 491 487 482 924 1,078 0 32 Other capital accounts 272,678 266,869 269,924 268,382 273,419 270,048 266,491 275,566 33 Total liabilities and capital accounts 34 McEuMstoOd:y M faorrk feotraebilgen Uan.Sd. iTntreeransautriyo nsaelc uacrictoieusn th eld in 193,393 195,037 198,508 197,382 198,823 188,928 193,044 198,288 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank .. 254,833 255,573 255,395 254,294 253,508 253,538 254,499 253,313 36 LESS: Held by bank 46,529 46,517 45,823 42,349 40,418 50,826 46,626 40,423 37 Federal Reserve notes, net 208,304 209,056 209,572 211,945 213,090 202,712 207,873 212,890 Collateral held against notes net: 38 Gold certificate account 11,083 11,082 11,081 11,079 11,078 11,085 11,082 11,078 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. Treasury and agency securities 192,203 192,956 193,473 195,848 196,994 186,609 191,773 196,794 42 Total collateral 208,304 209,056 209,572 211,945 213,090 202,712 207,873 212,890 1. Some of these data also appear in the Board's H.4.1 (503) release. For 4. Includes special investment account at the Federal Reserve Bank of Chicago address, see inside front cover. in Treasury bills maturing within 90 days. 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities 5. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes securities sold and scheduled market exchange rates of foreign-exchange commitments. to be bought back under matched sale-purchase transactions. 3. Valued monthly at market exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks A11 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1987 1987 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Oct. 30 Nov. 30 Dec. 31 630 817 836 492 951 587 790 3,815 4 3 2 9 W 1 1 6 i t d d h a a i y n y s s 1 t t 5 o o d 9 1 a 0 y y e d s a a r y s 5 3 9 0 8 2 7 4 7 0 1 6 80 2 0 9 7 47 2 0 2 0 94 8 0 3 5 6 2 0 2 5 76 2 0 5 5 3,80 9 0 6 0 0 0 0 0 0 0 0 6 8 7 9 W 1 1 6 i t d d h a a i y n y s s 1 t t 5 o o d 9 1 a 0 y y e d s a a r y s 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 9 0 1 2 3 5 4 U. 9 O O W O S 1 1 6 . v v v i t e e d T e d h r r r a a r i y e n y 5 1 1 a s s 0 s y y 1 t t u e y o 5 e o r a a e y d 9 r r 1 a a s 0 r t s y y s o t e d e s o c 1 a a 5 u y r 1 r y s 0 i e t i a y e r e s s a — rs T otal 2 5 7 4 2 2 1 1 0 2 4 1 4 4 5 , , , , , , , 0 0 6 5 9 7 2 9 0 5 7 8 1 7 8 4 1 9 0 7 3 2 4 7 4 2 1 1 8 9 2 5 7 9 5 , , , , , , , 8 9 4 4 1 1 3 4 5 5 5 2 6 1 2 2 8 8 4 9 3 2 6 5 4 2 1 1 1 9 5 1 7 9 0 5 , , , , , , , 5 4 2 0 1 3 3 6 2 2 4 7 4 1 8 4 9 9 0 5 3 2 4 7 4 2 1 1 1 3 2 5 7 6 2 5 , , , , , , , 4 3 4 7 1 9 3 4 7 2 1 6 9 1 4 3 4 5 9 2 3 2 7 4 2 5 2 1 1 1 7 2 0 5 1 5 , , , , , , , 9 9 3 4 1 5 3 0 9 8 2 6 8 1 1 3 3 4 9 3 3 2 7 1 5 4 2 1 1 0 7 1 4 2 3 4 , , , , , , , 2 6 6 8 5 6 7 2 1 7 2 1 0 6 0 4 9 9 3 9 4 2 5 7 4 2 1 1 9 4 2 2 8 4 4 , , , , . , . 8 9 9 1 7 5 7 0 7 6 6 1 8 1 5 7 0 5 6 0 7 2 4 7 2 4 2 1 1 6 6 2 5 7 1 5 , , , , , , , 8 1 5 4 5 3 3 2 1 5 2 1 6 1 7 2 1 4 2 3 3 2 2 2 1 1 1 1 0 1 2 8 9 7 6 Fe O O O 9 W 1 d 1 6 e v v v i r e e t e d d a h r r r a a l i y n y 5 1 1 a s s 0 g y y 1 e t t e y e 5 o o n a a e c d r r a 9 1 y s a r 0 t y s y o t o d e o s b ' 5 a a l r y 1 i y g s 0 e a a y ti r e o s a n r s s — Total 1 4 3 1 1 1 , , , , , 0 5 8 5 6 3 2 8 5 2 7 4 8 1 7 7 4 2 3 7 6 7 3 1 1 , , , , 5 5 8 5 3 2 6 2 5 7 8 1 1 7 4 7 2 7 6 1 7 3 1 1 , , , , 5 9 4 5 3 1 5 8 9 3 5 8 6 1 5 0 3 8 9 7 3 1 1 , , , , 5 4 7 5 2 3 1 5 9 2 7 0 5 9 6 5 7 8 8 8 0 9 2 3 1 1 , , , , , 3 0 4 6 6 3 1 4 4 1 5 9 5 9 1 9 6 3 1 8 0 1 3 3 0 1 1 , , , , , 0 5 4 4 7 2 4 5 7 7 8 0 5 1 6 4 4 3 7 7 5 9 2 3 1 1 , , , , , 8 5 5 6 5 2 3 4 2 2 2 6 1 8 3 7 4 1 8 6 7 8 3 1 1 1 , , , , , 8 4 6 5 6 3 1 6 1 9 6 5 5 9 8 6 1 0 3 8 0 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • March 1988 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1987 1984 1985 1986 1987 IItteemm Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov/ Dec. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS' 1 Total reserves2 39.91 46.06 56.17 57.44 58.35 57.71 57.60 57.88 57.83 58.50 57.99 57.44 2 Nonborrowed reserves 36.72 44.74 55.34 56.66 57.32 56.93 56.93 57.23 56.89 57.55 57.36 56.66 3 Nonborrowed reserves plus extended credit3 39.33 45.24 55.64 57.14 57.60 57.20 57.12 57.36 57.29 58.00 57.76 57.14 4 Required reserves 39.06 45.00 54.80 56.41 57.27 56.52 56.84 56.84 57.03 57.37 57.06 56.41 5 Monetary base4 199.60 217.32 239.51 256.70 248.37 248.48 249.46 250.80 251.85 254.35 256.08 256.70 Not seasonally adjusted 6 Total reserves2 40.94 47.24 57.64 58.97 57.30 57.63 57.74 57.39 57.50 58.04 58.09 58.97 7 Nonborrowed reserves 37.75 45.92 56.81 58.19 56.26 56.85 57.07 56.74 56.56 57.09 57.47 58.19 8 Nonborrowed reserves plus extended credit3 40.35 46.42 57.11 58.67 56.55 57.12 57.27 56.88 56.96 57.54 57.86 58.67 9 Required reserves 40.08 46.18 56.27 57.94 56.22 56.43 56.98 56.36 56.70 56.91 57.17 57.94 10 Monetary base4 202.70 220.82 243.63 261.21 246.83 249.29 251.42 251.42 251.60 253.29 256.82 261.21 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 40.70 48.14 59.56 62.12 58.34 58.78 58.84 58.36 59.81 61.11 61.20 62.12 12 Nonborrowed reserves 37.51 46.82 58.73 61.35 57.30 58.01 58.17 57.71 58.87 60.16 60.58 61.35 13 Nonborrowed reserves plus extended credit3 40.09 47.41 59.04 61.86 58.03 58.34 58.37 57.76 58.85 61.22 60.79 61.86 14 Required reserves 39.84 47.08 58.19 61.09 57.26 57.59 58.08 57.33 59.02 59.98 60.28 61.09 15 Monetary base 204.18 223.53 247.71 266.16 249.94 252.54 254.67 254.36 255.69 258.08 261.67 266.16 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 disconti- requirements (CRR), currency and vault cash figures are measured over the nuities 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 held during the lagged adjusted series consists of seasonally adjusted total reserves, which include computation period by institutions having required reserve balances at Federal excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted Reserve Banks plus the amount of vault cash equal to required reserves during the currency component of the money stock and the remaining items seasonally maintenance period at institutions having no required reserve balances. adjusted as a whole. 3. Extended credit consists of borrowing at the discount window under the 5. Reflects actual reserve requirements, including those on nondeposit liabiliterms and conditions established for the extended credit program to help ties, with no adjustments to eliminate the effects of discontinuities associated with depository institutions deal with sustained liquidity pressures. Because there is implementation of the Monetary Control Act or other regulatory changes to not the same need to repay such borrowing promptly as there is with traditional reserve requirements. short-term adjustment credit, the money market impact of extended credit is NOTE. Latest monthly and biweekly figures are available from the Board's similar to that of nonborrowed reserves. H.3(502) statistical release. Historical data and estimates of the impact on 4. The monetary base not adjusted for discontinuities consists of total reserves required reserves of changes in reserve requirements are available from the plus required clearing balances and adjustments to compensate for float at Federal Banking Section, Division of Research and Statistics, Board of Governors of the Reserve Banks and the currency component of the money stock less the amount Federal Reserve System, Washington, D.C. 20551. 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 i 1984 1985 1986 1987 Dec. Dec. Dec. Dec. Aug. Sept. Oct/ Nov. Seasonally adjusted 1 Ml 557.5 627.0 730.5 753.0' 751.2' 760.7 756.6 753.0 2 M2 2,369.1 2,569.5 2,801.2 2,895.6' 2,875.8' 2,892.5' 2,891.1 2,895.6 3 M3 2,985.4 3,204.7' 3,493. lr 3,662.3' 3,621.3' 3,644.7' 3,657.7 3,662.3 4 L 3,528.1 3,837.T 4,140.7' * 4,280.9' 4,316.9 4,331.4 n.a. 5 Debt 5,932.9 6,746.9 7,598.5 8,284.9 8,098.0 8,161.5 8,231.7 n.a. Ml components Currency2 158.5 170.6 183.5 199.7 194.5 196.2 198.4 199.7 7 Travelers checks3 5.2 5.9 6.4 7.0 7.0 7.0 7.0 7.0 8 Demand deposits 248.3 272.2 308.3 291.6 294.1 300.4 295.7 291.6 9 Other checkable deposits5 145.5 178.3 232.2 254.7 255.6 257.2 255.5 254.7 Nontransactions components 10 In M26 1,811.5 1,942.5 2,070.7 2,142.5 2,124.6' 2,131.8' 2,134.5 2,142.5 11 In M3 only 616.3 635.2' 691.9' 766.7' 745.5' 752.2' 766.6 766.7 Savings deposits8 12 Commercial Banks 122.2 124.6 154.5 177.3 178.0 177.5 177.0 177.3 13 Thrift institutions 166.6 179.0 211.8 233.3 241.3 239.3 234.9 233.3 Small denomination time deposits9 14 Commercial Banks 386.6 383.9 364.7 384.7 367.3 373.0 380.8 384.7 15 Thrift institutions 498.6 500.3 488.7 529.9 504.2' 509.7' 520.4 529.9 Money market mutual funds 16 General purpose and broker-dealer 167.5 176.5 207.6 221.5 215.5 218.1 220.2 221.5 17 Institution-only 62.7 65.1 84.1 88.6 80.7 81.6 88.5 88.6 Large denomination time deposits10 18 Commercial Banks" 269.6 284.1 291.8 322.9 313.6 317.0 322.7 322.9 19 Thrift institutions 147.3 152.1 155.3 166.0 155.3 159.1 162.7 166.0 Debt components 20 Federal debt 1,365.3 1,584.3 1,804.5 1,953.3 1,913.1 1,919.3 1,939.6 n.a. 21 Nonfederal debt 4,567.6 5,162.6 5,794.0 6,331.7 6,184.9 6,242.1 6,292.0 n.a. Not seasonally adjusted 22 Ml 570.3 641.0 746.5 769.1 749.4 757.7 759.7 769.1 23 M2 2,378.3 2,580.5 2,814.7 2,909.2 2,868.6' 2,888.5' 2,893.5 2,909.2 24 M3 2,997.2 3,217.9' 3,508.3' 3,677.2 3,616.0' 3,640.4' 3,662.0 3,677.2 25 L 3,538.8 3,848.9' 4,154.2' * 4,275.6' 4,310.8' 4,334.4 n.a. 26 Debt 5,927.1 6,740.6 7,591.7 8,277.6 8,081.9 8,147.3 8,216.5 n.a. Ml components 27 Currency2 160.8 173.1 186.2 202.7 194.3 195.9 199.3 202.7 28 Travelers checks 4.9 5.5 6.0 6.5 7.6 7.0 6.6 6.5 29 Demand deposits4 257.2 282.0 319.5 302.1 293.3 299.8 298.1 302.1 30 Other checkable deposits 147.4 180.4 235.0 257.8 254.2r 255.0' 255.7 257.8 Nontransactions components 31 M26 1,808.0 1,939.5 2,068.2 2,140.1 2.119.2' 2,130.8' 2,133.7 2,140.1 32 M3 only7 618.9 637.5' 693.6r 768.1 747.4' 751.9' 768.6 768.1 Money market deposit accounts 33 Commercial Banks 267.4 332.5 379.0 357.2 362.5 359.1 357.2 357.2 34 Thrift institutions 150.0 180.7 192.4 166.5 176.8 173.5 169.1 166.5 Savings deposits8 35 Commercial Banks 121.4 123.9 153.8 176.5 177.9 178.3 177.3 176.5 36 Thrift institutions 166.2 178.8 211.8 233.4 239.2 239.4 235.8 233.4 Small denomination time deposits9 37 Commercial Banks 386.7 383.8 364.4 384.1 369.0 374.0 381.4 384.1 38 Thrift institutions 499.6 501.5 489.8 531.0 503.4' 511.0' 521.8 531.0 Money market mutual funds 39 General purpose and broker-dealer 167.5 176.5 207.6 221.5 215.5 218.1 220.2 221.5 40 Institution-only 62.7 65.1 84.1 88.6 80.7 81.6 88.5 88.6 Large denomination time deposits10 41 Commercial Banks" 271.2 285.6 293.2 324.4 314.8' 318.2' 323.5 324.4 42 Thrift institutions 147.3 151.9 154.9 165.6 155.7 159.5 162.8 165.6 Debt components 43 Federal debt 1,364.7 1,583.7 1,804.0 1,952.7 1,900.2 1,909.8 1,935.3 n.a. 44 Nonfederal debt 4,562.4 5,156.9 5,787.8 6,324.9 6,181.7 6,237.5 6,281.2 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 DomesticN onfinancial Statistics • March 1988 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 Ian. 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 in amounts of less than $100,000. All individual retirement accounts (IRA) and is a consolidation adjustment that represents the estimated amount of overnight Keogh accounts at commercial banks and thrifts are subtracted from small time RPs 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 TURNOVER1 Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1987 Bank group, or type of customer 1984 19852 1986 May July Aug. Sept/ Oct. Seasonally adjusted Demand deposits 1 All insured banks 131,463.1 156,091.6 188,345.8 217,397.2 212,414.4 219,501.3 221,729.0 219,182.9 234,398.3 2 Major New York City banks 57,327.3 70,585.8 91,397.3 107,724.1 103,027.6 106,428.9 109,062.5 105,149.4 110,833.6 3 Other banks 74,135.9 85,505.9 96,948.8 109,673.1 109,386.8 113,072.3 112,666.5 114,033.4 123,564.6 4 ATS-NOW accounts4 1,549.1 1,823.5 2,182.5 2,310.5 2,417.6 2,498.7 2,333.1 2,349.0 2,591.3 5 Savings deposits 414.7 384.9 403.5 488.5 565.8 548.2 518.8 524.0 582.4 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 441.0 500.3 556.5 598.5 601.6 628.6 623.3 625.3 654.9 7 Major New York City banks 1,837.2 2,196.9 2,498.2 2,629.5 2,671.6 2,837.4 2,718.2 2,715.1 2,744.7 8 Other banks 277.8 305.7 321.2 340.3 347.8 362.8 357.0 365.7 389.1 9 ATS-NOW accounts4 15.3 15.8 15.6 13.3 13.9 14.3 13.2 13.2 14.4 10 Savings deposits 3.3 3.2 3.0 2.8 3.3 3.1 3.0 3.0 3.3 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 131,450.6 156,052.3 188,506.4 208,310.0 221,038.4 228,764.2 214,145.9 216,728.0 233,999.8 12 Major New York City banks 57,282.4 70,559.2 91,500.0 101,203.2 106,171.3 111,157.7 103,822.8 104,234.0 111,398.9 13 Other banks 74,164.2 85,493.1 97,006.6 107,106.7 114,867.0 117,606.5 110,323.1 112,494.0 122,600.8 14 ATS-NOW accounts4 1,552.2 1,826.4 2,184.6 2,262.9 2,466.9 2,466.0 2,226.4 2,414.9 2,577.7 15 MMDA 862.3 1,223.9 1,609.4 1,851.2 1,987.9 2,002.7 1,752.7 1,846.6 2,247.8 16 Savings deposits 415.2 385.3 404.1 483.7 565.2 576.5 524.2 519.0 604.3 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 441.1 499.9 556.7 584.0 625.0 651.7 612.5 620.2 657.8 18 Major New York City banks 1,838.6 2,196.3 2,499.1 2,556.8 2,801.5 2,928.4 2,721.9 2,751.0 2,824.8 19 Other banks 277.9 305.6 321.2 337.8 363.8 375.7 354.2 361.1 387.6 20 ATS-NOW accounts4 15.4 15.8 15.6 13.2 14.3 14.3 12.8 13.7 14.6 21 MMDA® 3.5 4.0 4.5 5.1 5.4 5.5 4.8 5.1 6.3 22 Savings deposits5 3.3 3.2 3.0 2.8 3.3 3.3 3.0 3.0 3.5 1. These series have been revised to reflect new benchmark adjustments and 3. Represents accounts of individuals, partnerships, and corporations and of revised seasonal factors as well as some revisions of reported data. Historical states and political subdivisions. tables containing revised data for earlier periods may be obtained from the 4. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- Banking Section, Division of Monetary Affairs, Board of Governors of the counts authorized for automatic transfer to demand deposits (ATS). ATS data are Federal Reserve System, Washington, D.C. 20551. available beginning December 1978. These data also appear on the Board's G.6 (406) release. For address, see inside 5. Excludes ATS and NOW accounts, MMDA and special club accounts, such front cover. as Christmas and vacation clubs. 2. Annual averages of monthly figures. 6. Money market deposit accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • March 1988 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1987 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Total loans and securities2 2,118.3 2,119.7 2,126.2 2,147.3 2,160.6 2,167.1 2,169.5 2,189.0 2,206.7 2,225.5' 2,223.4 2,222.8 2 U.S. government securities 316.3 315.2 314.3 315.8 320.1 316.9 319.8 328.6 331.7 332.2' 331.0 334.1 3 Other securities 190.2 193.8 195.5 197.2 197.6 198.5 196.9 194.9 194.6 194.3 196.4 196.3 4 Total loans and leases2 1,611.8 1,610.7 1,616.4 1,634.3 1,642.9 1,651.7 1,652.8 1,665.5 1,680.4 1,699.0' 1,696.0 1,692.4 5 Commercial and industrial ..... 554.1 553.8 551.7 553.9 555.9 558.0 555.5 555.6 560.5 565.7 567.0 571.1 6 Bankers acceptances held ... 6.8 6.8 6.2 6.5 6.8 6.8 6.7 7.5 7.5 7.7 7.1 7.0 7 Other commercial and industrial 547.2 546.9 545.5 547.4 549.0 551.2 548.9 548.1 553.1 558.0 559.9 564.1 8 U.S. addressees4 537.8 537.9 536.9 539.0 540.9 542.8 540.6 540.0 545.0 550.1' 552.2 554.8 9 Non-U.S. addressees 9.4 9.0 8.6 8.4 8.1 8.4 8.3 8.1 8.1 7.9 7.7 9.3 10 Real estate 499.2 504,0 511.0 517.9 526.3 537.2 544.1 551.3 556.2 564.3 570.9 577.4 11 Individual 314.9 315.2 315.7 316.6 316.7 314.5 314.6 316.9 318.9 320.4 321.6 322.7 12 Security 37.7 38.5 38.3 43.6 42.0 42.2 41.7 44.0 45.2 4466..44 3388..88 3333..55 13 Nonbank financial institutions 35.7 34.7 35.0 35.4 35.4 33.9 31.9 30.9 30.8 31.4' 31.6 31.8 14 Agricultural 31.4 30.8 30.0 29.8 29.9 29.9 30.0 30.2 30.2 30.4 3300..88 3311..33 15 State and political subdivisions 57.8 57.2 57.0 56.0 55.2 54.4 53.2 52.6 52.5 52.5 52.1 51.1 16 Foreign banks 10.6 10.3 9.7 9.9 9.9 10.3 9.4 9.5 9.8 10.3' 9.2 8.6 17 Foreign official institutions 5.9 6.1 6.7 6.7 5.8 5.3 5.2 5.1 5.1 5.2' 5.2 5.1 18 Lease financing receivables 22.1 22.2 22.3 22.6 22.9 23.1 23.2 23.3 23.8 23.8 24.1 24.1 19 All other loans 42.4 38.0 38.9 41.9 43.1 42.8 44.0 46.1 47.3 48.6' 45.0 35.7 Not seasonally adjusted 20 Total loans and securities2 2,123.7 2,121.6 2,127.8 2,148.4 2,157.9 2,166.8 2,164.5 2,180.5 2,204.2 2,215.8' 2,224.2 2,239.9 21 U.S. government securities 314.6 318.9 317.2 317.7 319.7 317.4 321.0 327.5 330.4 328.3' 330.3 332.4 22 Other securities 193.7 194.1 194.4 195.2 196.8 197.1 194.8 195.3 195.5 194.8 196.9 197.6 23 Total loans and leases2 1,615.4 1,608.6 1,616.2 1,635.4 1,641.4 1,652.4 1,648.7 1,657.7 1,678.2 1,692.6' 1,697.0 1,709.9 24 Commercial and industrial ..... 552.4 551.7 554.5 556.5 557.5 559.1 554.6 552.7 559.3 563.1' 566.6 574.7 25 Bankers acceptances held3... 6.7 6.7 6.2 6.4 6.7 6.9 6.7 7.4 7.6 7.5 7.2 77..33 26 Other commercial and industrial 545.8 545.0 548.3 550.0 550.8 552.3 547.8 545.3 551.7 555.6' 559.4 567.4 27 U.S. addressees4 537.1 536.3 539.9 541.6 542.5 543.7 539.0 536.8 543.3 547.2 551.0 559.0 28 Non-U.S. addressees 8.7 8.7 8.4 8.4 8.3 8.6 8.8 8.5 8.4 8.3 8.4 8.4 29 Real estate 499.3 503.1 509.8 516.7 525.4 536.8 544.3 551.5 557.3 565.3 572.1 578.4 30 Individual 317.9 314.7 313.3 314.4 314.8 313.2 313.5 316.7 319.8 321.4 322.7 326.3 31 Security 39.4 37.5 38.6 45.1 42.0 43.0 40.9 41.5 43.6 44.8 3399..00 3355..22 32 Nonbank financial institutions 35.7 33.8 33.8 34.8 34.9 34.0 31.9 31.1 31.5 31.5' 32.1 32.9 33 Agricultural 30.7 29.9 29.1 29.1 29.7 30.3 30.7 31.0 31.1 31.1 30.9 31.0 34 State and political subdivisions 57.8 57.2 57.0 56.0 55.2 54.4 53.2 52.6 52.5 52.5 52.1 51.1 35 Foreign banks 10.7 10.5 9.7 9.5 9.6 10.0 9.4 9.3 10.0 10.3' 9.3 9.0 36 Foreign official institutions 5.9 6.1 6.7 6.7 5.8 5.3 5.2 5.1 5.1 5.2' 5.2 5.1 37 Lease financing receivables 22.4 22.4 22.5 22.7 22.9 23.2 23.1 23.2 23.6 23.5 23.8 24.1 38 All other loans 43.1 41.5 41.2 43.9 43.6 43.2 42.0 42.9 44.4 43.8' 43.3 42.2 1. These data also appear in the Board's G.7 (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 BANKS1 Monthly averages, billions of dollars Source Apr. May June July Aug. Sept/ Oct. Nov. Total nondeposit funds 1 Seasonally adjusted2 155.2 159.6 164.1 160.9 169.6 166.C 158.9' 165.5 177.0 175.9' 173.0 175.4 2 Not seasonally adjusted 154.7 162.3 166.5 161.0 170.4 163.2' 155.7' 165.6 176.4 174.9 174.6 175.6 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 171.0 171.6 170.4 171.3 169.6 167.7 166.5 166.9 165.9 165.5 166.3 162.3 4 Not seasonally adjusted 170.5 174.3 172.7 171.4 170.4 165.0 163.3 167.0 165.2 164.5 167.9 162.4 5 Net balances due to foreign-related institutions, not seasonally adjusted. -12.0 -6.3 -10.4 -1.7' -1.3' 11.2 10.4' 13.2 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted -26.1 -23.8 -21.1 -23.0 -15.5 -15.5 -22.2 -17.7 -11.8 -14.7 -17.1' -14.1 7 Gross due from balances 71.5 68.3 66.0 70.5 68.5 67.1 66.4 64.5 63.8 67.7' 70.4' 69.3 8 Gross due to balances 45.4 44.5 44.9 47.5 53.0 51.5 44.2 46.8 52.0 53.(y 53.3' 55.2 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted5 10.4 11.8 14.8 12.6 15.5 13.8' 14.6' 16.4' 22.9 25.1' 23.8' 27.3 10 Gross due from balances 75.1 72.9 71.1 72.7 75.5 77.2 77.2 77.5 77.1 79.6 83.1 79.7 11 Gross due to balances 85.5 84.7 85.9 85.3 91.0 91.0' 91.8' 93.8 100.0 104.7' 106.9 106.9 Security RP borrowings 12 Seasonally adjusted® 101.1 97.7 95.1 98.6 99.2 101.4 102.5 105.2 108.6 108.6 107.6 107.0 13 Not seasonally adjusted 100.6 100.4 97.4 98.7 100.0 98.7 99.4 105.3 107.9 107.7 109.2 107.1 U.S. Treasury demand balances 14 Seasonally adjusted 21.3 23.2 17.7 20.7 26.1 27.9 24.7 29.1 23.3 35.6 38.6 24.0 15 Not seasonally adjusted 27.5 28.6 17.1 21.6 30.8 25.5 26.6 21.6 25.5 30.7 25.8 22.4 Time deposits, $100,000 or more8 16 Seasonally adjusted 350.1 351.1 354.1 359.8 366.2 372.9 371.8 370.9 370.5 377.8 385.0 386.7 17 Not seasonally adjusted 351.3 353.2 356.4 357.2 364.8 369.8 368.6 370.2 371.8 379.0 385.8 388.2 1. Commercial banks are those in the 50 states and the District of Columbia banks, term federal funds, overdrawn due from bank balances, loan RPs, and with national or state charters plus agencies and branches of foreign banks. New participations in pooled loans. York investment companies majority owned by foreign banks, and Edge Act 4. Averages of daily figures for member and nonmember banks. corporations owned by domestically chartered and foreign banks. 5. Averages of daily data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 6. Based on daily average data reported by 122 large banks. nonbanks and not seasonally adjusted net Eurodollars. 7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at 3. Other borrowings are borrowings on any instrument, such as a promissory commercial banks. Averages of daily data. note or due bill, given for the purpose of borrowing money for the banking 8. Averages of Wednesday figures. business. This includes borrowings from Federal Reserve Banks and from foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • March 1988 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1987 Account Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,279.4 2,279.2 2,306.2 2,318.9 2,313.4 2,324.3 2,342.2 2,368.8 2,396.9' 2,385.2 2,429.8 2 Investment securities 484.7 486.2 492.5 495.4 493.2 497.7 501.7 502.6 504. 1' 508.6 515.0 3 U.S. government securities 298.8 299.5 305.1 307.0 303.4 308.2 312.7 312.7 314.9' 316.6 320.9 4 Other 185.9 186.7 187.5 188.4 189.8 189.4 189.0 189.9 189.2' 192.0 194.1 5 Trading account assets 29.0 25.2 23.3 21.4 20.2 20.4 20.0 19.5 19.7 20.3 16.9 6 Total loans 1,765.6 1,767.8 1,790.3 1,802.1 1,800.0 1,806.2 1,820.5 1,846.7 1,873. lr 1,856.3 1,897.9 7 Interbank loans 156.7 154.3 151.8 160.4 150.9 157.5 162.5 158.3 174.2' 163.0 175.8 8 Loans excluding interbank 1,608.9 1,613.5 1,638.5 1,641.7 1,649.1 1,648.7 1,658.0 1,688.3 1,693.3 1,722.1 9 Commercial and industrial 551.5 555.3 555.5 558.2 558.0 551.8 551.6 564.6 564.1' 566.2 582.4 10 Real estate 503.5 510.7 519.0 527.4 539.1 547.3 552.7 559.1 566.6' 572.9 581.7 11 Individual 314.7 313.1 315.2 314.8 312.6 314.5 317.2 321.0 322.5 322.8 329.3 12 All other 239.2 234.4 248.9 241.3 239.5 235.2 236.6 243.6 245.6' 231.4 228.8 13 Total cash assets 206.3 203.8 209.7 230.8 213.1 207.1 209.3 221.6 222.0' 213.5 231.9 14 Reserves with Federal Reserve Banks. 28.4 31.1 29.8 37.9 33.8 32.8 37.6 33.3 38.6r 34.1 36.6 15 Cash in vault 23.5 22.9 24.0 25.1 24.2 24.4 24.6 24.4 24.9 24.0 28.4 16 Cash items in process of collection ... 71.4 68.1 74.5 81.3 74.4 68.6 65.6 81.3 78.8' 75.8 80.0 17 Demand balances at U.S. depository institutions 33.0 32.7 33.9 37.2 31.1 31.6 31.4 32.6 32.9' 33.5 37.2 18 Other cash assets 50.1 49.0 47.5 49.3 49.7 49.6 50.0 50.0 46.8' 46.2 49.7 19 Other assets 201.1 202.1 204.0 208.7 203.8 189.0 190.7 200.6 192.4' 193.2 189.7 20 Total assets/total liabUities and capital 2,686.8 2,685.2 2,719.9 2,758.3 2,730.4 2,720.4 2,742.2 2,791.0 2,811.2' 2,791.8 2,851.4 21 Deposits 1,895.5 1,899.6 1,919.5 1,939.1 1,923.4 1,924.6 1,926.4 1,968.4 1,967.4' 1,970.1 2,012.2 22 Transaction deposits 569.2 568.8 590.7 596.9 578.2 573.7 572.6 610.7 596.5' 590.4 623.2 23 Savings deposits 535.9 539.7 535.1 538.6 535.0 536.0 535.2 532.7 529.2' 528.5 527.5 24 Time deposits 790.3 791.2 793.6 803.6 810.1 814.9 818.6 825.0 841.7' 851.2 861.5 25 Borrowings 425.6 414.9 422.7 435.6 428.3 424.0 435.1 424.6 443.6' 428.5 433.2 26 Other liabilities 184.6 188.7 195.2 200.3 201.3 201.1 209.2 225.0 226.9' 220.3 231.8 27 Residual (assets less liabilities) 181.2 181.9 182.5 183.3 177.4 170.7 171.4 172.9 173.3' 173.0 174.2 MEMO 28 U.S. government securities (including trading account) 320.1 316.7 318.9 320.6 315.8 322.6 326.3 326.6 328.8' 331.0 332.0 29 Other securities (including trading account) 193.7 194.7 196.9 196.1 197.6 195.5 195.4 195.5 194.9' 197.9 199.9 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2,130.3 2,121.7 2,146.9 2,156.2 2,151.9 2,157.7 2,174.9 2,191.8 2,215.2 2,210.7 2,239.7 31 Investment securities 463.3 463.6 470.0 471.5 469.8 473.8 478.1 478.2 480.4 484.6 490.6 32 U.S. Treasury securities 289.2 289.4 295.2 2%. 7 294.0 298.4 302.7 302.1 304.8 305.9 310.7 33 Other 174.1 174.2 174.8 174.8 175.9 175.4 175.3 176.1 175.6 178.7 179.8 34 Trading account assets 29.0 25.2 23.3 21.4 20.2 20.4 20.0 19.5 19.7 20.3 16.9 35 Total loans 1,638.0 1,632.9 1,653.6 1,663.3 1,661.8 1,663.5 1,676.9 1,694.1 1,715.1 1,705.8 1,732.2 36 Interbank loans 130.5 124.1 124.2 128.6 121.5 122.9 129.5 124.8 133.1 129.6 136.8 37 Loans excluding interbank 1,507.5 1,508.8 1,529.3 1,534.7 1,540.4 1,540.6 1,547.4 1,569.3 1,582.0 1,576.3 1,595.4 38 Commercial and industrial 474.1 474.6 473.5 475.3 471.7 466.0 464.7 471.1 471.9 473.4 481.6 39 Real estate 497.0 504.1 512.0 520.3 532.1 539.9 544.9 551.1 558.9 564.9 572.6 40 Individual 314.4 312.7 314.9 314.5 312.3 314.2 316.8 320.6 322.2 322.5 329.0 41 All other 221.9 217.4 229.0 224.7 224.3 220.6 221.0 226.4 229.0 215.6 212.3 42 Total cash assets 188.9 186.5 192.5 213.2 195.3 189.1 190.1 201.4 205.1 196.6 213.1 43 Reserves with Federal Reserve Banks. 27.1 29.7 27.2 35.9 32.1 31.4 36.2 31.0 36.5 31.5 35.1 44 Cash in vault 23.5 22.8 24.0 25.0 24.1 24.4 24.6 24.4 24.9 23.9 28.4 45 Cash items in process of collection ... 71.0 67.7 74.0 80.9 73.9 68.1 65.1 80.7 78.2 75.4 7799..55 46 Demand balances at U.S. depository institutions 31.1 31.1 31.9 35.1 29.3 29.8 29.8 30.6 31.1 31.8 35.2 47 Other cash assets 36.4 35.2 35.4 36.2 35.9 35.4 34.4 34.7 34.4 33.9 34.9 48 Other assets 144.0 143.4 144.4 143.1 134.4 121.8 121.5 135.9 131.1 124.4 127.8 49 Total assets/liabilities and capital 2,463.2 2,451.5 2,483.8 2,512.5 2,481.5 2,468.7 2,486.5 2,529.1 2,551.3 2,531.7 2,580.6 50 Deposits 1,838.2 1,840.7 1,857.1 1,876.5 1,861.5 1,863.9 1,864.7 1,906.3 1,905.3 1,908.5 1,947.7 51 Transaction deposits 561.3 560.5 582.2 588.4 569.7 565.6 564.3 602.0 587.8 581.9 614.6 52 Savings deposits 533.9 537.7 533.1 536.6 533.0 533.9 533.0 530.6 527.0 526.2 525.2 53 Time deposits 743.0 742.5 741.8 751.4 758.8 764.4 767.3 773.7 790.5 800.3 807.9 54 Borrowings 336.1 319.1 328.2 337.1 328.6 321.1 335.8 326.5 346.7 324.5 332.0 55 Other liabilities 110.8 113.0 119.1 118.8 117.1 116.1 117.6 126.5 129.1 128.8 129.8 56 Residual (assets less liabilities) 178.1 178.8 179.4 180.2 174.3 167.6 168.3 169.8 170.2 169.9 171.1 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 Banking Section, Board of Governors of the Federal Reserve System, Washing- foreign-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 and insured nonmember banks. day of the month based on a sample of weekly reporting banks and quarter-end 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 Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 1 Cash and balances due from depository institutions 104,047 106,338 100,794 99,175 108,381 97,635 105,035 106,809 113,404 2 Total loans, leases, and securities, net 1,028,725 1,019,353 1,019,935 1,013,391 1,023,082 1,012,108 1,024,093 1,015,369 1,023,761 3 U.S. Treasury and government agency 116,718 115,659 118,856 117,548 119,362 119,090 118,434 118,237 116,677 4 Trading acount 14,666 13,988 15,399 14,452 15,383 14,787 13,483 12,242 11,022 Investment account, by maturity 102,052 101,671 103,457 103,096 103,979 104,303 104,951 105,994 105,656 6 One year or less 15,884 15,953 15,934 15,798 16,193 16,075 16,075 16,034 15,891 7 Over one through five years 44,412 44,332 44,997 44,952 45,854 46,142 46,773 46,730 46,705 8 Over five years 41,757 41,385 42,525 42,346 41,933 42,086 42,102 43,230 43,060 9 Other securities 68,571 68,499 68,772 69,038 68,362 68,158 68,297 68,444 69,372 10 Trading account 2,596 2,467 2,415 2,551 2,187 1,981 2,230 2,377 2,953 11 Investment account 65,975 66,031 66,357 66,486 66,175 66,177 66,068 66,066 66,419 12 States and political subdivisions, by maturity 47,846 47,797 47,598 47,541 47,256 47,201 47,083 46,982 47,012 13 One year or less 5,212 5,216 5,227 5,219 5,144 5,192 5,187 5,186 5,201 14 Over one year 42,633 42,580 42,370 42,322 42,112 42,008 41,896 41,7% 41,811 15 Other bonds, corporate stocks, and securities 18,129 18,234 18,759 18,945 18,919 18,976 18,984 19,085 19,406 16 Other trading account assets 2,960 3,027 3,114 3,293 3,161 2,869 2,629 2,675 2,880 17 Federal funds sold1 74,436 69,181 66,010 61,422 67,365 59,129 66,172 56,107 63,563 18 To commercial banks 46,827 40,005 40,003 37,024 43,149 36,279 44,741 35,884 44,223 19 To nonbank brokers and dealers in securities 19,153 20,972 18,031 16,687 17,442 15,957 14,506 13,776 13,109 70 Toothers 8,455 8,204 7,976 7,712 6,774 6,893 6,925 6,447 6,231 71 Other loans and leases, gross 805,026 801,998 802,074 800,960 803,802 801,797 807,409 808,532 809,594 ?? Other loans, gross 785,507 782,294 782,372 781,232 784,097 782,016 787,561 788,562 789,504 73 Commercial and industrial 276,798 276,231 276,438 275,525 276,545 275,818 277,537 278,260 279,476 24 Bankers acceptances and commercial paper 2,289 2,275 2,353 2,224 2,180 2,200 2,063 1,996 2,010 75 All other 274,509 273,956 274,085 273,301 274,365 273,618 275,474 276,264 277,466 76 U.S. addressees 271,479 270,881 271,134 270,342 271,375 270,556 272,429 273,175 274,484 27 Non-U.S. addressees 3,030 3,075 2,950 2,959 2,990 3,061 3,045 3,089 2,982 78 Real estate loans 241,075 241,832 242,598 242,971 243,439 243,640 244,607 245,278 245,746 79 Revolving, home equity 14,174 14,240 14,318 14,428 14,436 14,532 14,676 14,784 15,038 30 All other 226,901 227,592 228,280 228,543 229,002 229,107 229,931 230,494 230,708 31 To individuals for personal expenditures 142,706 142,753 142,430 142,419 142,547 142,995 144,043 145,052 144,711 3? To depository and financial institutions 51,281 50,954 50,673 49,692 50,579 50,421 50,504 50,306 49,943 33 Commercial banks in the United States 22,363 22,669 21,992 22,038 22,349 21,920 21,933 21,622 21,565 34 Banks in foreign countries 5,289 4,770 4,970 4,314 4,400 4,516 4,225 4,506 4,211 35 Nonbank depository and other financial institutions . 23,628 23,514 23,711 23,341 23,829 23,985 24,346 24,178 24,168 36 For purchasing and carrying securities 14,679 12,650 12,407 12,488 12,898 12,507 13,002 12,708 12,748 37 To finance agricultural production 5,601 5,504 5,573 5,508 5,531 5,522 5,557 5,560 5,716 38 To states and political subdivisions 31,474 31,366 31,443 31,301 31,124 30,894 30,807 30,609 30,413 39 To foreign governments and official institutions 2,888 2,840 2,844 2,813 2,799 2,752 2,810 2,734 2,680 40 All other 19,004 18,164 17,965 18,514 18,634 17,467 18,694 18,055 18,071 41 Lease financing receivables 19,519 19,705 19,702 19,728 19,705 19,781 19,848 19,971 20,091 4? LESS: Unearned income 4,650 4,655 4,573 4,519 4,472 4,496 4,497 4,518 4,400 43 Loan and lease reserve 34,336 34,356 34,318 34,352 34,498 34,439 34,351 34,108 33,925 44 Other loans and leases, net 766,040 762,987 763,183 762,089 764,832 762,862 768,561 769,906 771,269 45 All other assets 127,920 125,569 124,223 119,818 122,167 120,093 124,260 121,581 121,907 46 Total assets 1,260,693 1,251,260 1,244,952 1,232,384 1,253,630 1,229,836 1,253,388 1,243,758 1,259,072 47 Demand deposits 234,023 223,223 224,965 217,809 225,664 213,083 237,816 230,209 239,169 48 Individuals, partnerships, and corporations 180,167 175,482 173,804 171,882 177,824 168,885 183,331 180,792 184,002 49 States and political subdivisions 5,493 5,140 5,344 5,601 5,658 5,193 6,192 6,0% 5,887 50 U.S. government 4,581 1,460 3,852 2,190 1,474 1,364 3,716 3,427 3,139 51 Depository institutions in the United States 24,947 25,261 24,805 23,154 23,526 21,664 27,733 23,983 26,9% 5? Banks in foreign countries 6,928 6,445 6,604 6,467 7,090 7,017 6,499 6,652 6,883 53 Foreign governments and official institutions 810 848 651 755 809 763 1,035 689 1,199 54 Certified and officers' checks 11,098 8,587 9,906 7,761 9,282 8,195 9,309 8,570 11,063 55 Transaction balances other than demand deposits 62,477 61,824 61,228 60,792 62,753 62,306 62,399 62,574 62,235 56 Nontransaction balances 535,335 535,904 536,595 535,801 536,090 536,826 536,098 536,529 534,985 57 Individuals, partnerships, and corporations 498,289 499,007 499,467 498,327 499,014 499,662 498,785 498,816 497,334 58 States and political subdivisions 25,345 25,159 25,088 25,357 25,022 25,292 25,381 25,425 25,370 59 U.S. government 773 748 764 832 779 763 910 898 892 60 Depository institutions in the United States 10,095 10,165 10,452 10,451 10,429 10,278 10,208 10,580 10,602 61 Foreign governments, official institutions, and banks .... 833 825 824 834 846 831 815 810 788 67 Liabilities for borrowed money 258,036 259,410 250,943 245,592 257,182 242,751 245,768 242,416 249,921 63 Borrowings from Federal Reserve Banks 345 260 369 330 415 630 565 185 430 64 Treasury tax-and-loan notes 14,033 20,490 16,626 16,895 16,117 5,382 12,394 22,168 23,170 65 All other liabilities for borrowed money2 243,658 238,660 233,948 228,366 240,650 236,739 232,809 220,063 226,320 66 Other liabilities and subordinated note and debentures .. 91,392 90,957 91,615 93,573 92,179 94,971 91,987 92,826 94,139 67 Total liabilities 1,181,263 1,171,318 1,165,346 1,153,568 1,173,868 1,149,938 1,174,069 1,164,555 1,180,450 68 Residual (total assets minus total liabilities)3 79,430 79,942 79,606 78,816 79,762 79,898 79,318 79,203 78,622 MEMO 69 Total loans and leases (gross) and investments adjusted4 .. 998,521 995,690 996,831 993,200 9%,554 992,845 996,267 996,490 9%,299 70 Total loans and leases (gross) adjusted4 810,272 808,504 806,089 803,321 805,669 802,728 806,907 807,134 807,370 71 Time deposits in amounts of $100,000 or more 172,558 172,597 172,906 172,866 171,172 172,264 172,002 173,729 173,501 17 Loans sold outright to affiliates—total 1,708 1,718 1,778 1,812 1,731 1,699 1,557 1,500 1,366 73 Commercial and industrial 1,248 1,263 1,321 1,352 1,270 1,245 1,126 1,080 1,057 74 Other 459 455 456 460 461 454 431 420 309 75 Nontransaction savings deposits (including MMDAs) 224,976 224,971 225,070 224,050 225,674 225,236 224,754 223,278 222,410 1. Includes securities purchased under agreements to resell. 4. Exclusive of loans and federal funds transactions with domestic commercial 2. Includes federal funds purchased and securities sold under agreements to banks. repurchase; for information on these liabilities at banks with assets of $1 billion or 5. Loans sold are those sold outright to a bank's own foreign branches, more on Dec. 31, 1977, see table 1.13. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if 3. This is not a measure of equity capital for use in capital-adequacy analysis or not a bank), and nonconsolidated nonbank subsidiaries of the holding company. for other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 DomesticN onfinancial Statistics • March 1988 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures except as noted 1987 Account Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 1 Cash balances due from depository institutions 25,488 26,426 23,107 22,068 25,598 25,475 24,132 25,476 29,583 2 Total loans, leases and securities, net1 219,018 214,596 214,864 210,656 216,067 210,791 216,610 211,747 215,374 Securities 3 U.S. Treasury and government agency 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 14,141 13,821 14,368 13,718 14,311 14,224 14,451 14,333 14,553 6 One year or less 1,441 1,469 1,517 1,498 1,452 1,417 1,523 1,245 1,381 7 Over one through five years 4,216 4,122 4,640 4,663 4,681 4,608 4,609 4,643 4,707 8 Over five years 8,483 8,230 8,212 7,557 8,178 8,199 8,319 8,445 8,465 9 Other securities 0 0 0 0 0 0 0 0 0 10 Trading account2 0 0 0 0 0 0 0 0 0 11 Investment account 16,572 16,657 16,736 16,753 16,926 16,953 17,029 16,927 17,144 12 States and political subdivisions, by maturity 13,482 13,453 13,355 13,291 13,262 13,258 13,262 13,274 13,302 13 One year or less 788 795 786 775 874 880 865 879 868 14 Over one year 12,694 12,659 12,568 12,515 12,387 12,379 12,397 12,395 12,434 15 Other bonds, corporate stocks and securities 3,090 3,203 3,381 3,462 3,664 3,694 3,766 3,653 3,842 16 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 17 Federal funds sold 31,439 29,539 30,165 26,826 30,182 26,163 28,858 24,645 26,753 18 To commercial banks 14,259 11,479 14,241 11,953 15,313 11,985 16,333 12,412 15,081 19 To nonbank brokers and dealers in securities 11,826 12,850 10,959 9,992 10,779 9,544 8,947 8,312 8,320 20 To others 5,354 5,209 4,965 4,881 4,090 4,635 3,578 3,921 3,352 21 Other loans and leases, gross 172,495 170,239 169,145 168,903 170,214 169,022 171,794 171,250 172,264 22 Other loans, gross 167,986 165,726 164,656 164,383 165,729 164,483 167,248 166,696 167,699 23 Commercial and industrial 59,181 58,562 57,841 56,954 57,463 57,105 58,195 58,010 58,447 24 Bankers acceptances and commercial paper 438 380 411 358 357 336 318 306 304 25 All other 2,313 2,329 2,353 2,373 2,389 2,407 2,424 2,441 2,463 26 U.S. addressees 42,188 42,315 42,497 42,568 42,834 43,070 43,529 44,059 44,559 27 Non-U.S. addressees 58,742 58,182 57,430 56,596 57,105 56,769 57,878 57,704 58,142 28 Real estate loans 58,214 57,635 56,957 56,142 56,655 56,277 57,406 57,244 57,743 29 Revolving, home equity 529 547 473 455 450 491 472 460 400 30 All other 44,501 44,644 44,850 44,940 45,222 45,478 45,953 46,500 47,022 31 To individuals for personal expenditures 21,522 21,596 21,139 21,266 21,282 21,356 21,552 21,682 21,849 32 To depository and financial institutions 21,852 21,738 21,475 21,306 21,576 21,654 21,926 21,824 21,631 33 Commercial banks in the United States 11,770 12,156 11,733 11,923 12,112 12,015 12,135 12,180 12,123 34 Banks in foreign countries 3,287 2,784 2,968 2,460 2,487 2,682 2,342 2,625 2,316 35 Nonbank depository and other financial institutions 6,795 6,798 6,774 6,923 6,978 6,957 7,449 7,020 7,193 36 For purchasing and carrying securities 5,882 4,394 4,794 5,037 5,560 4,824 5,291 4,944 4,724 37 To finance agricultural production 331 324 342 300 297 307 323 284 282 38 To states and political subdivisions 7,721 7,697 7,770 7,745 7,665 7,502 7,423 7,347 7,386 39 To foreign governments and official institutions 742 638 664 625 663 610 712 657 597 40 All other 6,254 6,132 5,781 6,210 6,000 5,646 5,871 5,448 5,760 41 Lease financing receivables 4,509 4,512 4,489 4,520 4,485 4,539 4,546 4,554 4,565 42 LESS: Unearned income 1,438 1,444 1,365 1,348 1,329 1,338 1,346 1,360 1,365 43 Loan and lease reserve 14,190 14,216 14,186 14,196 14,237 14,233 14,176 14,048 13,975 44 Other loans and leases, net 156,866 154,579 153,594 153,359 154,648 153,451 156,272 155,841 156,924 45 All other assets4 61,352 58,613 60,326 56,001 57,512 54,028 55,866 51,969 53,517 46 Total assets 305,858 299,635 298,296 288,726 299,176 290,294 296,608 289,192 298,474 Deposits 47 Demand deposits 63,618 56,801 60,251 54,185 56,287 53,403 62,863 58,495 63,743 48 Individuals, partnerships, and corporations 44,225 39,952 40,612 38,671 39,683 37,296 43,119 41,654 42,692 49 States and political subdivisions 879 1,066 889 791 912 846 968 810 758 50 U.S. government 870 261 717 367 192 187 595 566 593 51 Depository institutions in the United States 6,118 5,871 7,116 5,715 5,292 5,434 7,680 5,999 7,573 52 Banks in foreign countries 5,623 5,226 5,303 5,223 5,846 5,759 55,,333377 5,277 5,640 53 Foreign governments and official institutions 671 703 517 587 678 626 888899 553 1,061 54 Certified and officers' checks 5,232 3,722 5,098 2,831 3,684 3,255 4,274 3,636 5,424 55 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) .... 8,073 8,094 8,002 7,932 8,171 8,062 8,163 8,249 8,337 56 Nontransaction balances 101,446 101,376 101,404 101,097 101,566 101,144 101,300 101,225 101,540 57 Individuals, partnerships, and corporations 92,300 92,527 92,574 92,342 93,046 92,551 92,737 92,647 92,979 58 States and political subdivisions 6,794 6,530 6,542 6,481 6,238 6,326 6,248 6,127 6,122 59 U.S. government 67 55 57 56 57 60 59 50 50 60 Depository institutions in the United States 1,870 1,876 1,844 1,833 1,829 1,833 1,886 2,015 2,015 61 Foreign governments, official institutions, and banks .. 415 388 388 385 395 373 370 386 373 62 Liabilities for borrowed money 70,652 73,380 69,556 64,759 73,560 65,077 63,327 58,880 61,299 63 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 0 0 0 64 Treasury tax-and-loan notes 3,283 5,007 4,222 4,327 4,173 1,269 3,602 5,570 5,642 65 All other liabilities for borrowed money5 67,369 68,372 65,334 60,432 69,387 63,808 59,726 53,310 55,656 66 Other liabilities and subordinated note and debentures .. 38,767 36,398 35,763 37,632 36,196 39,044 37,553 38,953 40,347 67 Total liabilities 282,557 276,049 274,976 265,606 275,780 266,731 273,208 265,802 275,266 68 Residual (total assets minus total liabilities)6 23,301 23,586 23,321 23,120 23,396 23,562 23,401 23,390 23,208 MEMO 69 Total loans and leases (gross) and investments adjusted • 208,618 206,620 204,441 202,325 204,208 202,361 203,663 202,563 203,510 70 Total loans and leases (gross) adjusted 177,905 176,142 173,336 171,854 172,971 171,185 172,184 171,303 171,813 71 Time deposits in amounts of $100,000 or more 38,448 38,397 38,361 38,016 37,776 37,761 37,476 37,881 37,437 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 BANKS1 Assets and Liabilities Millions of dollars, Wednesday figures 1987 AAccccoouunntt Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 1 Cash and due from depository institutions ... 10,434 10,013 10,922 9,970 11,801 9,920 10,326 10,150 10,878 2 Total loans and securities 97,204 96,081 98,486 96,156 96,785 99,280 100,996 102,108 106,201 3 U.S. Treasury and government agency securities 7,466 7,290 7,558 7,328 77,,668811 77,,662266 77,,551111 77,,337700 77,,005566 4 Other securities. 7,402 7,516 7,456 7,450 7,394 7,299 7,341 7,474 7,811 5 Federal funds sold2 8,474 8,073 10,615 7,679 6,947 8,988 10,272 9,364 11,688 6 To commercial banks in the United States. 6,730 6,081 8,191 5,663 4,174 6,354 8,152 7,490 10,136 7 To others 1,744 1,992 2,423 2,016 2,772 2,634 2,120 1,874 1,552 8 Other loans, gross 73,860 73,202 72,857 73,698 74,763 75,367 75,872 77,899 79,645 9 Commercial and industrial 49,111 47,548 48,072 47,700 48,231 49,280 49,217 50,530 52,377 10 Bankers acceptances and commercial paper 3,361 1,553 1,448 1,501 1,488 1,524 1,457 1,528 1,668 11 All other 45,751 45,995 46,624 46,199 46,744 47,756 47,760 49,002 50,709 12 U.S. addressees 43,421 43,597 44,234 43,743 44,400 45,281 45,192 46,751 48,526 13 Non-U.S. addressees 2,330 2,398 2,391 2,456 2,344 2,475 2,568 2,251 2,183 14 To financial institutions 15,597 15,815 15,605 16,805 16,618 16,237 16,279 16,901 16,766 15 Commercial banks in the United States.. 11,644 11,872 11,437 12,688 12,218 11,806 11,924 12,429 12,153 16 Banks in foreign countries 1,012 913 1,133 1,093 1,288 1,272 1,223 1,208 1,245 17 Nonbank financial institutions 2,940 3,029 3,035 3,024 3,112 3,159 3,132 3,264 3,368 18 To foreign governments and official institutions 388 400 407 403 401 411 398 400 418 19 For purchasing and carrying securities 2,062 2,339 1,655 1,738 1,991 1,971 2,200 2,201 2,121 20 All other 6,701 7,100 7,118 7,052 7,522 7,468 7,777 7,866 7,962 21 Other assets (claims on nonrelated parties) .. 28,927 31,776' 31,619 31,805 31,787 31,798 31,264 31,427 31,500 22 Net due from related institutions 15,953 14,071 13,816 16,081 14,182 13,879 12,498 13,256 12,676 23 Total assets 115522,,551177 151,942' 154,844 154,012 154,555 154,877 155,084 156,942 161,255 24 Deposits or credit balances due to other than directly related institutions 42,747R 42,397R 41,917R 41,849 41,773 42,366 43,088 43,349 44,244 25 Transaction accounts and credit balances . 3,527' 3,341' 3,221' 2,918 2,841 3,092 3,206 3,033 3,461 26 Individuals, partnerships, and corporations 1,865 1,908' 1,932 1,714 1,709 1,969 1,876 1,909 1,895 27 Other 1,662' 1,432' 1,289' 1,204' 1,132 1,123 1,330 1,124 1,566 28 Nontransaction accounts 39,219 39,056 38,696 38,931 38,932 39,274 39,882 40,315 40,783 29 Individuals, partnerships, and corporations 31,889 31,954 31,655 31,912 31,234 31,430 32,290 32,718 33,190 30 Other 7,330 7,102 7,042 7,018 7,699 7,844 7,592 7,597 7,593 31 Borrowings from other than directly related institutions 56,494 54,297' 57,873' 58,464' 58,777 56,187 56,865 54,285 56,753 32 Federal funds purchased3 27,448 25,598 28,195 27,249 28,495 25,886 25,380 22,167 24,201 33 From commercial banks in the United States 17,568 15,592 17,030 16,924 16,373 13,943 15,256 12,413 15,115 34 From others 9,880 10,007 11,166 10,326 12,122 11,943 10,124 9,754 9,086 35 Other liabilities for borrowed money 29,046' 28,699' 29,678' 31,215' 30,282 30,302 31,486 32,118 32,552 36 To commercial banks in the United States 22,743' 22,672 23,826 24,299' 23,841 23,081 24,295 24,359 25,128 37 To others 6,303 6,027 5,851 6,916 6,441 7,221 7,190 7,759 7,424 38 Other liabilities to nonrelated parties 33,004 32,830 32,928 33,016 33,304 33,338 32,544 32,639 32,557 39 Net due to related institutions 20,272 22,417 22,124 20,683 20,701 22,986 22,587 26,668 27,701 40 Total liabilities 152,517 151,942' 154,844 154,012 154,555 154,877 155,084 156,942 161,255 MEMO 41 Total loans (gross) and securities adjusted6 .. 78,829 78,128 78,857 77,804 80,393 81,121 80,920 82,189 83,912 42 Total loans (gross) adjusted6 63,960 63,322 63,843 63,026 65,317 66,195 66,068 67,344 69,044 1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and 4. Includes savings deposits, money market deposit accounts, and time deposagencies of foreign banks that include those branches and agencies with assets of its. $750 million or more on June 30, 1980, plus those branches and agencies that had 5. Includes securities sold under agreements to repurchase. reached the $750 million asset level on Dec. 31, 1984. 6. Exclusive of loans to and federal funds sold to commercial banks in the 2. Includes securities purchased under agreements to resell. United States. 3. Includes credit balances, demand deposits, and other checkable deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 DomesticN onfinancial Statistics • March 1988 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances, not seasonally adjusted Commercial banks TTyyppee ooff hhoollddeerr 1986 1987 11998822 11998833 11998844 DDeecc.. DDeecc.. DDeecc.. DDeecc..^^44 June Sept. Dec. Mar. June Sept. 1 All holders—Individuals, partnerships, and corporations 291.8 293.5 302.7 321.0 322.4 333.6 363.6 335.9 340.2 339.0 2 Financial business 35.4 32.8 31.7 32.3 32.3 35.9 41.4 35.9 36.6 36.5r 3 Nonfinancial business 150.5 161.1 166.3 178.5 180.0 185.9 202.0 183.0 187.2 188.2 4 Consumer 85.9 78.5 81.5 85.5 86.4 86.3 91.1 88.9 90.1 88.7 5 Foreign 3.0 3.3 3.6 3.5 3.0 3.3 3.3 2.9 3.2 3.2 6 Other 17.0 17.8 19.7 21.2 20.7 22.2 25.8 25.2 23.1 22.4 Weekly reporting banks 1986 1987 11998822 11998833 11998844 DDeecc.. DDeecc.. DDeecc..22 DDeecc..^^''44 June Sept. Dec. Mar. June Sept. 7 All holders—Individuals, partnerships, and corporations 144.2 146.2 157.1 168.6 168.5 174.7 195.1 178.1 179.3 179.1 8 Financial business 26.7 24.2 25.3 25.9 25.7 28.9 32.5 28.7 29.3 29.3 9 Nonfinancial business 74.3 79.8 87.1 94.5 93.1 94.8 106.4 94.4 94.8 96.0 10 Consumer 31.9 29.7 30.5 33.2 34.9 35.0 37.5 36.8 37.5 37.2 11 Foreign 2.9 3.1 3.4 3.1 2.9 3.2 3.3 2.8 3.1 3.1 12 Other 8.4 9.3 10.9 12.0 11.9 12.8 15.4 15.5 14.6 13.5 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 such deposits for December 1984 is $5.0 billion at all insured commercial banks of 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; noniinancial 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 1987 1983 1984 1985 1986 1987 IInnssttrruummeenntt Dec. Dec. Dec. Dec. Dec. June July Aug. Sept. Oct. Nov.1 Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 187,658 237,586 300,899 331,016 n.a. 348,741 348,247 352,737 358,828 360,013 349,678 Financial companies2 Dealer-placed paper 2 Total 44,455 56,485 78,443 100,207 n.a. 108,691 107,709 110,714 115,570 111,098 103,539 3 Bank-related (not seasonally adjusted) 2,441 2,035 1,602 2,265 n.a. 2,430 2,311 2,404 2,590 2,689 1,893 Directly placed paper 4 Total 97,042 110,543 135,504 152,385 n.a. 161,921 162,185 163,620 166,169 171,392 168,676 5 Bank-related (not seasonally adjusted) 35,566 42,105 44,778 40,860 n.a. 47,862 46,354 45,487 46,815 46,249 45,353 6 Nonfinancial companies 46,161 70,558 86,952 78,424 n.a. 78,129 78,353 78,403 77,089 77,523 77,463 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 78,309 78,364 68,413 64,974 72,581 69,622 68,495 68,645 68,771 71,891 71,091 Holder 8 Accepting banks 9,355 9,811 11,197 13,423 10,924 11,234 10,664 10,870 10,521 10,856 10,701 9 Own bills 8,125 8,621 9,471 11,707 9,445 9,661 9,630 9,905 9,400 9,742 9,714 10 Bills bought 1,230 1,191 1,726 1,716 1,479 1,573 1,035 965 1,121 1,114 987 Federal Reserve Banks 11 Own account 418 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 729 671 937 1,317 965 1,717 1,463 1,397 1,467 1,400 1,134 13 Others 67,807 67,881 56,279 50,234 58,692 56,671 56,367 56,379 56,784 59,635 59,257 Basis 14 Imports into United States 15,649 17,845 15,147 14,670 16,513 16,179 17,431 17,087 17,198 17,814 17,026 15 Exports from United States 16,880 16,305 13,204 12,960 15,221 14,161 14,659 14,967 15,046 15,949 15,435 16 All other 45,781 44,214 40,062 37,344 38,847 39,281 36,405 36,590 36,526' 38,122 38,630 1. A change in the reporting panel in November resulted in a slight understate- 5. Includes public utilities and firms engaged primarily 'in such activities as ment of outstanding volume. communications, construction, manufacturing, mining, wholesale and retail trade, 2. Institutions engaged primarily in activities such as, but not limited to, transportation, and services. commercial savings, and mortgage banking; sales, personal, and mortgage fi- 6. Beginning October 1984, the number of respondents in the bankers accepnancing; factoring, finance leasing, and other business lending; insurance under- tance survey were reduced from 340 to 160 institutions—those with $50 million or writing; and other investment activities. more in total acceptances. The new reporting group accounts for over 95 percent 3. Includes all financial company paper sold by dealers in the open market. of total acceptances activity. 4. As reported by financial companies that place their paper directly with investors. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Effective Date Month Av r e a r t a e ge Month 10.50 1987—Apr. 1 7.75 1985—Jan 10.61 1986—July 10.00 May 1 8.00 Feb 10.50 Aug. 9.50 15 8.25 Mar 10.50 Sept. Sept. 4 8.75 Apr 10.50 Oct. 9.00 Oct. 7 9.25 May 10.31 Nov. 8.50 ?? 9.00 June 9.78 Dec. 8.00 Nov. 5 8.75 July 9.50 7.50 Aug 9.50 1987—Jan. Sept 9.50 Feb. Oct 9.50 Mar. Nov 9.50 Apr. Dec 9.50 May June 1986—Jan. 9.50 July Feb. 9.50 Aug. Mar. 9.10 Sept. Apr. 8.83 Oct.. May 8.50 Nov. June 8.50 Dec. NOTE. These data also appear in the Board's H.15 (519) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • March 1988 1.35 INTEREST RATES Money and Capital Markets Averages, percent per year; weekly and monthly figures are averages of business day data unless otherwise noted. 1987 1987, week ending IInnssttrruummeenntt 11998855 11998866 11998877 Sept. Oct. Nov. Dec. Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 MONEY MARKET RATES 1 Federal funds1,2 8.10 6.80 6.66 7.22 7.29 6.69 6.77 6.78 6.89 6.84 6.58 6.75 2 Discount widow boirowing1, • 7.69 6.33 5.66 5.95 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Commercial paper 3 1-month 7.94 6.62 6.74 7.26 7.38 6.77 7.76 6.75 7.28 7.77 8.18 7.90 4 3-month 7.95 6.49 6.82 7.37 7.89 7.17 7.61 7.20 7.47 7.64 7.93 7.64 5 6-month 8.01 6.39 6.85 7.55 7.96 7.17 7.49 7.21 7.42 7.56 7.72 7.46 Finance paper, directly placed4. 6 1-month 77..9911 66..5588 6.61 77..2200 77..2288 6.63 7.23 6.60 6.67 7.48 7.62 7.24 7 3-month 7.77 6.38 6.54 7.08 7.40 6.91 6.97 7.03 7.17 6.95 6.99 6.95 8 6-month 7.75 6.31 6.37 6.90 7.17 6.69 6.64 6.61 6.59 6.60 6.68 6.69 Bankers acceptances ,6 9 3-month 77..9922 66..3399 6.75 7.31 77..8855 7.07 7.48 7.14 7.41 7.64 7.69 7.41 10 6-month 7.96 6.29 6.78 7.48 7.92 7.07 7.41 7.14 7.37 7.56 7.59 7.31 Certificates of deposit, secondary market 11 1-month 77..9977 6.61 6.75 77..2255 77..3399 66..8800 7.86 6.77 7.72 7.88 8.16 7.93 1? 3-month 8.05 6.52 6.87 7.37 8.02 7.24 7.66 7.26 7.61 7.75 7.88 7.61 N 6-month 8.25 6.51 7.01 7.74 8.19 7.31 7.67 7.33 7.62 7.78 7.88 7.61 14 Eurodollar deposits,, 3-month8 8.28 6.71 7.06 7.51 8.29 7.41 7.86 7.38 7.71 7.84 8.13 7.90 U.S. Treasury bills Secondary market9 15 3-month 7.48 5.98 5.78 6.40 6.13 5.69 5.77 5.72 5.41 5.86 5.90 5.83 16 6-month 7.65 6.03 6.03 6.64 6.69 6.19 6.36 6.17 6.15 6.44 6.43 6.44 17 1-year 7.81 6.08 6.32 7.11 7.05 6.50 6.69 6.56 6.55 6.74 6.73 6.71 Auction average 0 18 3-month 7.49 5.97 5.82 6.32 6.40 5.81 5.80 5.70 5.49 5.81 6.00 5.96 19 6-month 7.66 6.02 6.05 6.57 6.86 6.23 6.36 6.11 6.12 6.42 6.45 6.48 20 1-year 7.81 6.07 6.33 6.74 6.89 6.48 6.74 6.48 n.a. n.a. n.a. 6.74 CAPITAL MARKET RATES U.S. Treasury notes and bonds" Constant maturities 71 1-year 8.43 6.46 6.77 7.67 7.59 6.96 7.17 7.02 7.02 7.24 7.23 7.19 ?? 2-year 9.27 6.87 7.42 8.34 8.40 7.69 7.86 7.76 7.75 7.93 7.91 7.85 ?3 3-year 9.64 7.06 7.68 8.67 8.75 7.99 8.13 8.05 8.04 8.21 8.17 8.12 74 5-year 10.13 7.31 7.94 8.94 9.08 8.35 8.45 8.41 8.40 8.54 8.50 8.41 75 7-year 10.51 7.55 8.23 9.26 9.37 8.69 8.82 8.77 8.80 8.96 8.88 8.72 26 10-year 10.62 7.68 8.39 9.42 9.52 8.86 8.99 8.95 8.98 9.14 9.05 8.87 77 20-year 10.97 7.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 30-year 10.79 7.80 8.59 9.59 9.61 8.95 9.12 9.03 9.12 9.31 9.18 8.97 Composite 3 29 Over 10 years (long-term) 1100..7755 8.14 8.64 99..5588 99..6611 8.99 9.12 9.06 9.14 9.31 9.18 8.95 State and local notes and bonds Moody's series14 30 8.60 6.95 7.14 7.66 7.90 7.50 7.45 7.45 7.45 7.50 7.50 7.40 31 Baa 9.58 7.76 8.17 8.67 8.85 8.47 8.42 8.40 8.40 8.45 8.45 8.40 32 Bond Buyer series15 9.11 7.32 7.64 8.26 8.70 7.95 7.96 7.96 7.90 8.10 8.01 7.95 Corporate bonds Seasoned issues16 33 All industries 12.05 9.71 9.92 10.64 10.97 10.54 10.59 10.51 10.55 10.61 10.65 10.59 34 11.37 9.02 9.38 10.18 10.52 10.01 10.11 10.01 10.06 10.14 10.19 10.08 35 Aa 11.82 9.47 9.68 10.35 10.74 10.27 10.33 10.21 10.28 10.36 10.40 10.31 36 A 12.28 9.95 9.99 10.72 10.98 10.63 10.62 10.61 10.62 10.64 10.65 10.59 37 Baa 12.72 10.39 10.58 11.31 11.62 11.23 11.29 11.22 11.23 11.30 11.36 11.28 38 A-rated, recently-offered utility bonds17 12.06 9.61 9.95 10.84 11.07 10.39 10.42 10.40 10.42 10.70 10.41 10.21 MEMO: Dividend/price ratio18 39 Preferred stocks 10.49 8.76 8.37 8.64 8.99 9.11 9.08 9.02 8.99 9.02 9.10 9.07 40 Common stocks 4.25 3.48 3.08 2.78 3.25 3.66 3.71 3.69 3.86 3.78 3.66 3.59 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 15. General obligations only, with 20 years to maturity, issued by 20 state and 150-179 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 in an investment 16. Daily figures from Moody's Investors Service. Based on yields to maturity yield basis (which would give a higher figure). on selected long-term bonds. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Compilation of the Federal Reserve. This series is an estimate of the yield (which may be, but need not be, the average of the rates quoted by the dealers). on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 7. Unweighted average of offered rates quoted by at least five dealers early in call protection. Weekly data are based on Friday quotations. the day. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 8. Calendar week average. For indication purposes only. sample of ten issues; four public utilities, four industrials, one financial, and one 9. Unweighted average of closing bid rates quoted by at least five dealers. transportation. Common stock ratios on the 500 stocks in the price index. 10. Rates are recorded in the week in which bills are issued. Beginning with the NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the For address, see inside front cover. percentage yield (on a bank discount basis) that they would accept to two decimal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.36 STOCK MARKET Selected Statistics 1987 IInnddiiccaattoorr 11998855 11998866 11998877 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 108.09 136.00 161.70 163.88 163.00 169.58 174.28 184.18 178.39 157.13 137.21 134.88 2 Industrial 123.79 155.85 195.31 199.03 198.78 206.61 214.12 226.49 219.52 189.86 163.42 162.19 3 Transportation 104.11 119.87 140.39 137.91 141.30 150.39 157.49 164.02 158.58 140.95 117.57 115.85 4 Utility 56.75 71.36 74.29 72.74 71.64 74.25 74.18 78.20 76.13 73.27 69.86 67.39 5 Finance 114.21 147.19 146.48 150.52 145.97 152.73 152.27 160.94 154.08 137.35 118.30 111.47 6 Standard & Poor's Corporation (1941-43 = 10)1 186.84 236.34 286.83 289.32 289.12 301.36 310.09 329.36 318.66 280.16 245.01 240.96 7 American Stock Exchange2 (Aug. 31, 1973 = 50) 229.10 264.38 316.61 330.65 328.77 334.49 348.68 361.52 353.72 306.34 249.42 248.52 Volume of trading (thousands of shares) 8 New York Stock Exchange 109,191 141,385 188,642 187,135 170,898 163,380 180,356 193,477 177,319 277,026 179,481 178,517 9 American Stock Exchange 8,355 11,846 13,832 14,420 11,655 12,813 12,857 13,604 12,381 18,173 11,268 13,422 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 28,390 36,840 31,990 39,820 38,890 38,420 40,250 41,640 44,170 38,250 34,180 31,990 Free credit balances at brokers4 11 Margin-account 2,715 4,880 4,750 4,660 4,355 3,680 4,095 4,240 4,270 8,415 6,700 4,750 12 Cash-account 12,840 19,000 15,640 17,285 16,985 15,405 15,930 16,195 15,895 18,455 15,360 15,640 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 "margin securities" (as defined in the regulations) when such credit is collateracompanies. With this change the index includes 400 industrial stocks (formerly lized by securities. Margin requirements on securities other than options are the 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 difference between the market value (100 percent) and the maximum loan value of financial. collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; effectively cutting previous readings in half. and Regulation X, effective Nov. 1, 1971. 3. Beginning July 1983, under the revised Regulation T, margin credit at On Jan. 1, 1977, the Board of Governors for the first time established in broker-dealers includes credit extended against stocks, convertible bonds, stocks Regulation T the initial margin required for writing options on securities, setting acquired through exercise of subscription rights, corporate bonds, and govern- it at 30 percent of the current market-value of the stock underlying the option. On ment securities. Separate reporting of data for margin stocks, convertible bonds, Sept. 30,1985, the Board changed the required initial margin, allowing it to be the and subscription issues was discontinued in April 1984. same as the option maintenance margin required by the appropriate exchange or 4. Free credit balances are in accounts with no unfulfilled commitments to the self-regulatory organization; such maintenance margin rules must be approved by brokers and are subject to withdrawal by customers on demand. the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC 5. New series beginning June 1984. approved new maintenance margin rules, permitting margins to be the price of the 6. These regulations, adopted by the Board of Governors pursuant to the option plus 15 percent of the market value of the stock underlying the option. Securities Exchange Act of 1934, limit the amount of credit to purchase and carry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • March 1988 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1986 1987 AAccccoouunntt 11998844 11998855 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Savings and loan associations 1 Assets 903,488 948,781 963,316 935,516 936,877 939,722 944,291 952,686r 949,100' 949,266' 955,253' 956,744' 973,992 2 Mortgage-backed securities .. 97,303 123,257 129,340 128,856 129,279 134,743 141,032 140,643' 140,894 144,058 146,247' 150,230 3 Cash and investment securities' 124,801 126,712 142,700 132,733 135,884 138,727 136,370 138,295 138,126' 138,521 137,323 131,729' 139,675 4 Other 223,396 238,833 251,769 261,869 263,782 266,407 274,834 283,661 285,438' 287,517' 292,737 295,225' 301,229 5 Liabilities and net worth 903,488 948,781 963,316 935,516 936,877 939,722 944,291 952,686r 949,100' 949,266' 955,253' 956,744' 973,992 6 Savings capital 725,045 750,071 741,081 721,759 722,276 722,548 716,798 718,633 715,662 716,389 717,259 721,409 727,274 7 Borrowed money 125,666 138,798 159,742 153,373 152,173 158,175 165,881 171,278 175,393' 174,357 178,642 180,360 190,706 8 FHLBB 64,207 73,888 80,194 75,552 75,671 76,469 77,857 78,583 79,188 78,888 79,546 80,848 83,303 9 Other 61,459 64,910 79,548 77,821 76,502 81,706 88,024 92,695 96,205' 95,469 99,096 99,512 107,403 10 Other 17,944 19,045 20,071 19,773 21,823 18,958 20,870 22,621 19,566' 20,679' 21,941' 19,158' 20,9% 11 Net worth2 34,833 41,064 42,423 40,606 40,601 40,040 40,741 40,144'' 38,472' 37,836' 37,406' 35,814' 35,003 FSLIC-insured federal savings banks 12 Assets 98,559 131,868 210,562 235,428 235,763 241,418 246,277 253,006r 264,106' 268,813' 272,088' 272,789' 276,490 n Mortgages 57,429 72,355 113,638 136,770 136,489 138,882 140,854 144,581 150,421 152,885 154,058 154,658' 156,460 14 Mortgage-backed securities 9,949 15,676 29,766 33,570 34,634 36,088 37,500 39,371 40,969' 42,712 43,531 44,422' 45,132 15 Other 10,971 11,723 19,034 15,769 16,060 16,605 17,034 17,200 17,924' 17,546' 17,779 17,559' 17,383 16 Liabilities and net worth 98,559 131,868 210,562 235,428 235,763 241,418 246,277 253,006' 264,106' 268,813' 272,088' 272,789' 276,490 17 Savings capital 79,572 103,462 157,872 176,741 178,676 178,672 180,637 182,802 189,998 193,890 194,853 195,213 197,2% 18 Borrowed money 12,798 19,323 37,329 40,614 39,777 43,919 46,125 49,8% 53,255' 53,652 55,660 56,540 57,551 19 FHLBB 7,515 10,510 19,897 20,730 20,226 21,104 21,718 22,788 24,486 24,981 25,546 26,287 27,350 70 Other 5,283 8,813 17,432 19,884 19,551 22,815 24,407 27,108 28,769' 28,671 30,114 30,253 30,201 71 Other 1,903 2,732 4,263 5,304 5,480 5,265 5,547 6,044 5,988' 6,141' 6,454' 5,630' 6,308 22 Net worth 4,286 6,351 11,098 12,774 13,151 13,564 13,978 14,272 14,871' 15,134 15,123 15,408 15,348 Savings banks 23 Assets 203,898 216,776 236,866 235,603 238,074 240,739 243,454 245,906 244,760 246,833 249,888 251,472 255,989 Loans 24 Mortgage 102,895 110,448 118,323 119,199 119,737 121,178 122,769 124,936 128,217 129,624 130,721 133,298 135,317 25 Other 2244,,995544 3300,,887766 3355,,116677 3366,,112222 3377,,220077 3388,,001122 3377,,113366 37,313 3355,,220000 3355,,559911 3366,,779933 3366,,113344 3366,,447711 Securities 26 U.S. government 14,643 13,111 14,209 13,332 13,525 13,631 13,743 13,650 13,549 13,498 13,720 13,122 13,817 27 Mortgage-backed securities .. 19,215 19,481 25,836 26,220 26,893 27,463 28,700 28,739 27,785 28,252 28,913 29,655 30,202 28 State and local government .. 2,077 2,323 2,185 2,180 2,168 2,041 2,063 2,053 2,059 2,050 2,038 2,023 2,034 29 Corporate and other 23,747 21,199 20,459 19,795 19,770 19,598 19,768 19,956 18,803 18,821 18,573 18,431 18,062 30 Cash 4,954 6,225 6,894 5,239 5,143 5,703 5,308 5,176 4,939 4,806 4,823 4,484 5,529 31 Other assets 11,413 13,113 13,793 13,516 13,631 13,713 13,967 14,083 14,208 14,191 14,307 14,325 14,557 32 LiabUities 203,898 216,776 236,866 235,603 238,074 240,739 243,454 245,906 244,760 246,833 249,888 251,472 255,989 33 Deposits 180,616 185,972 192,194 191,441 192,559 193,693 193,347 194,742 193,274 194,549 195,895 196,824 199,336 34 Regular3 177,418 181,921 186,345 186,385 187,597 188,432 187,791 189,048 187,669 188,783 190,335 191,376 193,777 35 Ordinary savings 33,739 33,018 37,717 38,467 39,370 40,558 41,326 41,967 42,178 41,928 41,767 41,773 42,045 36 Time 104,732 103,311 100,809 100,604 100,922 100,896 100,308 100,607 100,604 102,603 105,133 107,063 109,486 37 Other 3,198 4,051 5,849 5,056 4,962 5,261 5,556 5,694 5,605 5,766 5,560 5,448 5,559 38 Other liabilities 12,504 17,414 25,274 24,710 25,663 27,003 29,105 30,436 30,515 31,655 32,467 32,827 34,226 39 General reserve accounts 10,510 12,823 18,105 18,236 18,486 18,830 19,423 19,603 19,549 19,718 20,471 20,407 20,365 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.37—Continued 1986 1987 AAccccoouunntt 11998844 11998855 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Credit unions4 40 Total assets/liabilities and capital 93,036 118,010 147,726 149,383 149,751 153,253 154,549 156,086 160,644 41 Federal 63,205 77,861 95,483 96,801 96,753 98,799 99,751 100,153 104,150 42 State 29,831 40,149 52,243 52,586 52,998 54,454 54,798 55,933 56,494 43 Loans outstanding .. 62,561 73,513 86,137 85,984 85,651 86,101 87,089 87,765 90,912 44 Federal 42,337 47,933 55,304 55,313 54,912 55,118 55,740 55,952 58,432 45 State 20,224 25,580 30,833 30,671 30,739 30,983 31,349 31,813 32,480 46 Savings 84,348 105,963 134,327 135,907 136,441 138,810 140,014 141,635 148,283 47 Federal 57,539 70,926 87,954 89,717 89,485 91,042 92,012 97,189 96,137 48 State 26,809 35,037 46,373 46,130 46,956 47,768 48,002 49,248 52,146 Life insurance companies 49 Assets 722,979 825,901 937,551 948,665 961,937 978,455 978,455 985,942 995,576 1,005,592 1,017,018 1,026,919 Securities 50 Government ..... 63,899 75,230 84,640 84,923 88,003 90,337 89,711 89,554 87,279 88,199 89,924 89,408 51 United States'.. 42,204 51,700 59,033 59,596 62,724 65,661 64,621 64,201 61,405 62,461 64,150 63,352 52 State ami local . 8,713 9,708 11,659 11,245 11,315 10,860 11,068 11,208 11,485 11,277 11,190 11,087 53 Foreign 12,982 13,822 13,948 14,082 13,964 13,816 14,022 14,145 14,389 14,461 14,584 14,969 54 Business 359,333 423,712 492,807 504,582 514,328 519,766 522,097 528,789 537,507 555,423 551,701 558,787 n.a. 55 Bonds 295,998 346,216 401,943 408,788 415,004 417,933 420,474 425,788 432,095 448,146 442,604 451,453 56 Stocks 63,335 77,496 90,864 95,794 99,324 101,833 101,623 103,001 105,412 107,277 109,097 107,334 57 Mortgages 156,699 171,797 193,842 194,213 194,935 195,743 197,315 198,760 200,382 201,297 202,241 204,264 58 Real estate 25,767 28,822 31,615 31,718 32,003 31,834 32,011 32,149 32,357 32,699 32,992 33,048 59 Policy loans 54,505 54,369 54,055 53,832 53,806 53,652 53,572 53,468 53,378 53,338 53,330 53,422 60 Other assets 63,776 71,971 80,592 79,397 78,842 82,105 83,749 83,222 84,390 85,420 86,83<y 87,991 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." Savings banks: Estimates by the National Council of Savings Institutions for all 2. Includes net undistributed income accrued by most associations. savings banks in the United States and for FDIC-insured savings banks that have 3. Excludes checking, club, and school accounts. converted to federal savings banks. 4. Data include all federally insured credit unions, both federal and state Credit unions: Estimates by the National Credit Union Administration for chartered, serving natural persons. federally chartered and federally insured state-chartered credit unions serving 5. Direct and guaranteed obligations. Excludes federal agency issues not natural persons. guaranteed, which are shown in the table under "Business" securities. Life insurance companies: Estimates of the American Council of Life Insurance 6. Issues of foreign governments and their subdivisions and bonds of the for all life insurance companies in the United States. Annual figures are annual- International Bank for Reconstruction and Development. statement asset values, with bonds carried on an amortized basis and stocks at NOTE. Savings and loan associations: Estimates by the FHLBB for all year-end market value. Adjustments for interest due and accrued and for associations in the United States based on annual benchmarks for non-FSLIC- differences between market and book values are not made on each item separately insured associations and the experience of FSLIC-insured associations. but are included, in total, in "other assets." FSLlC-insured federal savings banks: Estimates by the FHLBB for federal savings banks insured by the FSLIC and based on monthly reports of federally insured institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 DomesticN onfinancial Statistics • March 1988 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1987 1985 1986 1987 July Aug. Sept. Oct. Nov. U.S. budget1 1 Receipts, total 734,057 769,091 854,143 64,223 60,213 92,410 62,354 56,987 2 On-budget 547,886 568,862 640,741 47,880 43,511 73,755 45,992 40,630 3 Off-budget 186,171 200,228 213,402 16,343 16,703 18,656 16,362 13,357 4 Outlays, total 946,316 990,231 1,002,147 86,491 81,940 77,140 93,095 82,756 5 On-budget 769,509 806,733 808,315 70,806 65,071 60,497 76,910 65,986 6 Off-budget 176,807 183,498 193,832 15,685 16,869 16,643 16,185 16,770 7 Surplus, or deficit (-), total -212,260 -221,140 -148,005 -22,268 -21,727 15,270 -30,741 -25,769 8 On-budget -221,623 -237,871 -167,575 -22,926 -21,561 13,257 -30,918 -25,356 9 Off-budget 9,363 16,731 19,570 658 -166 2,013 176 -414 Source of financing (total) 10 Borrowing from the public 197,269 236,187 150,070 -3,103 33,060 -8,060 27,282 23,603 11 Operating cash (decrease, or increase 13,367 -14,324 -5,052 20,655 -3,219 -13,800 -1,879 17,164 12 o t h e r2! 1 1 1 ! ! ! ! ! ! !! 1 1,630 -723 2,986 4,716 -8,115 6,590 5,338 -14,998 MEMO 13 Treasury operating balance (level, end of period) 17,060 31,384 36,436 19,417 22,635 36,436 38,315 21,151 14 Federal Reserve Banks 4,174 7,514 9,120 5,365 3,764 9,120 8,898 3,595 15 Tax and loan accounts 12,886 23,870 27,316 14,052 18,872 27,316 29,416 17,556 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetary fund; other cash and monetary assets; accrued interest of 1985, all former off-budget entries are now presented on-budget. The Federal payable to the public; allocations of special drawing rights; deposit funds; Financing Bank (FFB) activities are now shown as separate accounts under the miscellaneous liability (including checks outstanding) and asset accounts; agencies that use the FFB to finance their programs. The act has also moved two seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustsocial security trust funds (Federal old-age survivors insurance and Federal ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold. disability insurance trust funds) off-budget. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to Government" and the Budget of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1986 1987 1987 111999888666 111999888777 HI H2 HI H2 Oct. Nov. Dec. RECEIPTS 1 All sources 769,091 854,143 394,345 387,524 447,282 421,712 62,354 ,56,987 85,525 2 Individual income taxes, net 348,959 392,557 169,444 183,156 205,157 192,575 32,429 25,039 36,537 3 Withheld .' 314,803 322,463 153,919 164,071 156,760 170,203 30,122 24,888 34,020 4 Presidential Election Campaign Fund 36 33 31 4 30 4 1 0 0 5 Nonwithheld 105,994 142,957 78,981 27,733 112,421 31,223 3,563 1,664 3,309 6 Refunds 71,873 72,8% 63,488 8,652 64,052 8,853 1,256 1,512 793 Corporation income taxes 7 Gross receipts 80,442 102,859 41,946 42,108 52,396 52,821 3,633 2,558 18,633 8 Refunds 17,298 18,933 9,557 8,230 10,881 7,119 1,778 891 884 9 Social insurance taxes and contributions, net 283,901 303,318 156,714 134,006 163,519 143,755 22,177 23,756 23,361 10 Employment taxes and contributions 255,062 273,185 139,706 122,246 146,6% 130,388 20,797 20,731 2222,,773355 11 Self-employment taxes and contributions 11,840 13,987 10,581 1,338 12,020 1,889 0 144 0 12 Unemployment insurance 24,098 25,418 14,674 9,328 14,514 10,977 950 2,661 170 13 Other net receipts3 4,742 4,715 2,333 2,429 2,310 2,390 430 364 457 14 Excise taxes 32,919 32,510 15,944 15,947 15,845 17,680 2,574 2,854 3,838 15 Customs deposits 13,327 15,032 6,369 7,282 7,129 7,993 1,317 1,247 1,361 16 Estate and gift taxes 6,958 7,493 3,487 3,649 3,818 3,610 608 617 540 17 Miscellaneous receipts 19,884 19,307 10,002 9,605 10,299 10,399 1,392 1,807 2,141 OUTLAYS 18 All types 990,231 1,002,147 486,058 505,448 502,983 530,763 93,095 82,756 109,401 19 National defense 273,375 282,016 135,367 138,544 142,886 147,009 25,928 21,366 29,070 20 International affairs 14,152 11,761 5,384 8,876 4,374 4,589 1,004 65 517 21 General science, space, and technology 8,976 9,188 12,519 4,594 4,324 5,441 1,118 867 937 22 Energy 4,735 4,176 2,484 2,735 2,335 1,531 499 316 316 23 Natural resources and environment 13,639 13,225 6,245 7,141 6,175 7,452 1,336 1,121 1,371 24 Agriculture 31,449 26,493 14,482 16,160 11,824 13,775 5,177 3,139 1,278 25 Commerce and housing credit 4,823 5,235 860 3,647 4,893 1,402 1,625 585 -688 26 Transportation 28,117 26,228 12,658 14,745 12,113 14,096 2,306 2,304 2,287 27 Community and regional development 7,233 5,334 3,169 3,494 3,108 2,358 742 450 701 28 Education, training, employment, and social services 30,585 28,721 14,712 15,287 14,182 14,590 2,455 3,045 2,301 29 Health 35,935 39,%8 17,872 18,795 20,318 20,750 3,613 3,744 3,176 30 Social security and medicare 268,921 282,473 135,214 138,299 142,864 158,469 23,979 23,153 40,992 31 Income security 119,7% 123,499 60,786 60,628 62,248 61,449 10,241 9,595 11,485 32 Veterans benefits and services 26,356 26,801 12,193 14,447 12,264 14,974 3,645 899 3,773 33 Administration of justice 6,603 7,507 3,352 3,360 3,626 4,251 674 649 774 34 General government 6,104 6,005 3,566 2,786 3,344 3,617 -231 1,085 1,577 35 General-purpose fiscal assistance 6,431 1,621 2,179 2,886 337 1,175 241 148 129 36 Net interest , 136,008 138,519 68,054 65,816 70,110 71,882 11,431 13,215 12,177 37 Undistributed offsetting receipts6 -33,007 -36,622 -17,193 -17,376 -18,104 -18,149 -2,688 -2,990 -2,770 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. SOURCES. U.S. Department of the Treasury, "Monthly Treasury Statement of 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous Receipts and Outlays of the U.S. Government," and the U.S. Office of Managereceipts. ment and Budget, Budget of the U.S. Government, Fiscal Year 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics • March 1988 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1985 1986 1987 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 1,827.5 1,950.3 1,991.1 2,063.6 2,129.5 2,218.9 2,250.7 2,313.1 2,354.3 2 Public debt securities 1,823.1 1,945.9 1,986.8 2,059.3 2,125.3 2,214.8 2,246.7 2,309.3 2,350.3 3 Held by public 1,506.6 1,597.1 1,634.3 1,684.9 1,742.4 1,811.7 1,839.3 1,871.1 1,893.1 4 Held by agencies 316.5 348.9 352.6 374.4 382.9 403.1 407.5 438.1 457.2 5 Agency securities 4.4 4.4 4.3 4.3 4.2 4.0 4.0 3.8 4.0 6 Held by public 3.3 3.3 3.2 3.2 3.2 3.0 2.9 2.8. 3.0 7 Held by agencies 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.0 8 Debt subject to statutory limit 1,823.8 1,932.4 1,973.3 2,060.0 2,111.0 2,200.5 2,232.4 2,295.0 2,336.0 9 Public debt securities 1,822.5 1,931.1 1,972.0 2,058.7 2,109.7 2,199.3 2,231.1 2,293.7 2,334.7 10 Other debt1 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,823.8 2,078.7 2,078.7 2,078.7 2,111.0 2,300.0 2,300.0 2,320.0 2,800.0 1. Includes guaranteed debt of Treasury and other federal agencies, specified SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District United States. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1986 1987 Type and holder 1983 1984 1985 1986 Q4 Q1 Q2 Q3 1 Total gross public debt 1,410.7 1,663.0 1,945.9 2,214.8 2,214.8 2,246.7 2,309.3 2,350.3 By type 2 Interest-bearing debt 1,400.9 1,660.6 1,943.4 2,212.0 2,212.0 2,244.0 2,306.7 2,347.8 3 Marketable 1,050.9 1,247.4 1,437.7 1,619.0 1,619.0 1,635.7 1,659.0 1.676.0 4 Bills 343.8 374.4 399.9 426.7 426.7 406.2 391.0 378.3 5 Notes 573.4 705.1 812.5 927.5 927.5 955.3 984.4 1.005.1 6 Bonds 133.7 167.9 211.1 249.8 249.8 259.3 268.6 277.6 7 Nonmarketable1 350.0 413.2 505.7 593.1 593.1 608.3 647.7 671.8 8 State and local government series 36.7 44.4 87.5 110.5 110.5 118.5 125.4 129.0 9 Foreign issues 10.4 9.1 7.5 4.7 4.7 4.9 5.1 4.4 10 Government 10.4 9.1 7.5 4.7 4.7 4.9 5.1 4.4 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 70.7 73.1 78.1 90.6 90.6 93.0 95.2 97.0 13 Government account series 231.9 286.2 332.2 386.9 386.9 391.4 421.6 440.7 14 Non-interest-bearing debt 9.8 2.3 2.5 2.8 2.8 2.7 2.6 2.5 By holder4 15 U.S. government agencies and trust funds 236.3 289.6 348.9 403.1 403.1 407.5 438.1 457.2 16 Federal Reserve Banks 151.9 160.9 181.3 211.3 211.3 196.4 212.3 211.9 17 Private investors 1,022.6 1,212.5 1,417.2 1,602.0 1,602.0 1,641.4 1,657.7 1,682.6 18 Commercial banks 188.8 183.4 192.2 232.1 232.1 232.0 237.1 250.5 19 Money market funds 22.8 25.9 25.1 28.6 28.6 18.8 20.6 n.a. 20 Insurance companies 56.7 76.4 95.8 106.9 106.9 n.a. n.a. n.a. 21 Other companies 39.7 50.1 59.0 68.8 68.8 73.4 78.7 80.2 22 State and local Treasurys 155.1 179.4 n.a. n.a. n.a. n.a. n.a. n.a. Individuals 23 Savings bonds 71.5 74.5 79.8 92.3 92.3 94.7 96.8 98.5 24 Other securities 61.9 69.3 75.0 70.5 70.5 68.3 68.6 70.4 25 Foreign and international5 166.3 192.9 212.5 251.5 251.5 250.7 270.1 268.4 26 Other miscellaneous investors6 259.8 360.6 n.a. n.a. n.a. n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes tion Administration; depository bonds, retirement plan bonds, and individual non-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. Treasury deposit accounts, and federally-sponsored agencies. 3. Held almost entirely by U.S. Treasury agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds Statement of the Public Debt of the United States; data by holder. Treasury 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 A3 3 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Par value; averages of daily figures, in millions of dollars 1987 1987 IItteemm 11998855 11998866 11998877 Oct. Nov. Dec. Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Immediate delivery2 1 U.S. Treasury securities 75,331 95,445 109,809 138,937 95,689 74,468 86,651 83,095 80,831 82,626 79,999 52,945 By maturity 2 Bills 32,900 34,247 37,853 41,000 30,259 24,987 29,467 28,953 29,637 24,987 25,355 19,134 3 Other within 1 year 1,811 2,115 3,264 4,405 4,070 2,941 4,199 4,082 3,044 2,941 2,405 3,002 4 1-5 years 18,361 24,667 27,836 41,107 28,364 20,559 25,372 21,649 21,484 20,950 23,682 16,469 5 5-10 years 12,703 20,456 23,941 34,061 19,153 15,699 18,208 17,383 16,395 19,673 17,311 9,094 6 Over 10 years 9,556 13,961 16,915 18,365 13,844 10,283 9,405 11,027 10,272 14,075 11,246 5,247 By type of customer 7 U.S. government securities dealers 3,336 3,670 2,920 2,750 1,894 2,053 2,308 2,070 1,792 2,052 2,752 1,732 8 U.S. government securities brokers 36,222 49,558 61,459 82,101 55,448 43,045 47,509 47,290 49,031 48,978 45,440 27,557 9 All others' 35,773 42,218 45,429 54,085 38,346 29,369 36,834 33,735 30,008 31,595 31,807 23,654 10 Federal agency securities 11,640 16,748 18,872 18,586 17,919 14,276 18,085 15,820 15,952 16,123 12,032 11,426 11 Certificates of deposit 4,016 4,355 4,106 4,927 3,392 3,010 3,329 3,475 3,130 2,945 2,857 2,798 12 Bankers acceptances 3,242 3,272 2,964 3,362 2,727 2,245 2,997 2,409 2,664 2,185 1,935 1,752 13 Commercial paper 12,717 16,660 17,102 19,394 16,007 15,138 15,776 15,373 16,216 16,732 14,594 1111,,114455 Futures contracts 14 Treasury bills 5,561 3,311 3,224 4,056 2,774 2,335 3,226 3,570 2,652 3,363 1,451 1,670 15 Treasury coupons 6,085 7,175 8,954 11,462 8,489 . 7,335 7,719 8,427 8,357 9,157 7,459 3,910 16 Federal agency securities 252 16 5 8 2 5 0 0 1 1 * 25 Forward transactions 17 U.S. Treasury securities 1,283 1,876 2,061 2,653 2,167 1,097 1,450 1,262 934 1,183 1,630 359 18 Federal agency securities 3,857 7,831 9,824 7,676 7,191 5,704 5,885 4,023 6,031 8,136 6,268 3,364 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. Treasury 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 Treasury securities (Treasury bills, notes, and 2. Data for immediate transactions do not include forward transactions. bonds) or after 30 days for mortgage-backed agency issues. 3. Includes, among others, all other dealers and brokers in commodities and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • March 1988 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1987 1987 IItteemm 11998855 11998866 11998877 Oct. Nov. Dec. Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Positions Net immediate2 1 U.S. Treasury securities 7,391 12,912 -6,258 -15,440 —6,865r -8,582 -5,291 -7,220 -11,341 -9,863 -7,155 2 Bills 10,075 12,761 4,325 7,260 5,702 2,580 4,287 3,146 1,555 2,826 1,719 3 Other within 1 year 1,050 3,706 1,556 -620 -565 -556 -1,022 -310 83 -441 -1,231 4 1-5 years 5,154 9,146 592 -4,938 1,750' 746 711 55 -1,439 -877 5,353 5 5-10 years -6,202 -9,505 -6,560 -8,724 -6,214 -3,547 -2,773 -2,748 -3,374 -3,608 -4,635 6 Over 10 years -2,686 -3,197 -6,172 -8,418 -7,538 -7,805 -6,493 -7,363 -8,166 -7,762 -8,361 7 Federal agency securities 22,860 32,984 31,900 34,002 29,108 25,308 27,026 28,341 26,485 23,466 22,173 8 Certificates of deposit 9,192 10,485 8,187 7,537 6,821 6,799 6,089 6,056 6,460 7,094 7,782 9 Bankers acceptances 4,586 5,526 3,661 2,879 3,151 2,399 2,649 2,546 1,984 2,226 2,821 10 Commercial paper 5,570 8,089 7,492 7,426 7,729 7,904 7,166 7,586 7,514 7,755 8,931 Futures positions 11 Treasury bills -7,322 -18,059 -3,372 2,492 1,158 448 1,837 1,627 829 141 -1,367 12 Treasury coupons 4,465 3,473 5,989 8,809 9,170 8,184 8,574 8,260 9,351 7,134 7,738 13 Federal agency securities -722 -153 -95 -100 -90 -84 -88 -88 -93 -97 -72 Forward positions 14 U.S. Treasury securities -911 -2,144 -1,190 229 145 -1,639 -2,202 -1,851 -2,225 -1,729 -313 15 Federal agency securities -9,420 -11,840 -18,817 -22,780 -18,489 -15,033 -16,176 -17,173 -16,088 -13,583 -12,499 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 68,035 98,954 n.a. 131,194 117,696 n.a. 123,520 115,152 118,765 104,065 121,267 17 Term 80,509 108,693 n.a. 164,441 164,332 n.a. 157,236 155,434 149,986 152,707 113300,,556677 Repurchase agreements 18 Overnight and continuing 101,410 141,735 n.a. 177,013 152,504 n.a. 169,401 155,276 160,361 139,139 149,481 19 Term 70,076 102,640 n.a. 123,372 138,724 n.a. 121,414 120,004 115,304 127,296 108,767 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. Treasury 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. Treasury and federal agency securithe number of trading days in the period. Positions are net amounts and are shown ties, 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 5. Includes both repurchase agreements undertaken to finance positions and a 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 A3 3 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1987 AAggeennccyy 11998844 11998855 11998866 June July Aug. Sept. Oct. Nov. 1 Federal and federally sponsored agencies 271,220 293,905 307,361 310,854 313,859 316,940 320,789 328,990 2 Federal agencies 35,145 36,390 36,958 36,%8 36,%3 37,845 37,177 37,207 3 Defense Department1 142 71 33 20 18 16 15 15 4 Export-Import Bank2,3 15,882 15,678 14,211 13,416 13,416 13,416 12,650 12,470 5 Federal Housing Administration4 133 115 138 169 175 174 178 182 n.a. 6 Government National Mortgage Association participation certificates5 2,165 2,165 2,165 1,965 1,965 1,965 1,965 11,,996655 7 Postal Service6 1,337 1,940 3,104 3,718 3,718 4,603 4,603 4,603 8 Tennessee Valley Authority 15,435 16,347 17,222 17,595 17,586 17,586 17,766 17,972 9 United States Railway Association6 51 74 85 85 85 85 0 0 10 Federally sponsored agencies7 237,012 257,515 270,553 273,886 276,8% 279,095 283,612 291,783 297,375 11 Federal Home Loan Banks 65,085 74,447 88,752 99,680 100,976 102,422 104,380 108,108 111,185 12 Federal Home Loan Mortgage Corporation 10,270 11,926 13,589 12,097 12,309 14,150 14,949 16,703 17,762 13 Federal National Mortgage Association 83,720 93,8% 93,563 91,039 91,637 91,568 92,618 94,298 95,096 14 Farm Credit Banks 72,192 68,851 62,478 56,648 55,715 55,408 55,276 55,854 55,629 15 Student Loan Marketing Association8 5,745 8,395 12,171 14,422 16,259 15,547 16,389 16,220 16,503 16 Financing Corporation9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 600 1,200 MEMO 17 Federal Financing Bank debt10 145,217 153,373 157,510 157,506 157,302 158,117 157,252 156,919 n.a. Lending to federal and federally sponsored agencies 18 Export-Import Bank3 15,852 1155,,667700 1144,,220055 1133,,441100 13,410 1133,,441100 1122,,664444 1122,,446644 -> 19 Postal Service 1,087 1,690 2,854 3,468 3,468 4,353 4,353 4,353 20 Student Loan Marketing Association 5,000 5,000 4,970 4,970 4,970 4,970 4,970 4,940 21 Tennessee Valley Authority 13,710 14,622 15,797 16,215 16,206 16,206 16,386 16,592 n.a. 22 United States Railway Association6 51 74 85 85 85 85 0 0 Other Lending11 7.3 Farmers Home Administration 58,971 64,234 65,374 65,199 65,049 65,069 65,009 6644,,993344 74 Rural Electrification Administration 20,693 20,654 21,680 21,539 21,529 21,503 21,197 21,226 25 29,853 31,429 32,545 32,620 32,585 32,521 32,693 32,410 1. Consists of mortgages assumed by the Defense Department between 1957 8. Before late 1981, the Association obtained financing through the Federal and 1963 under family housing and homeowners assistance programs. Financing Bank (FFB). 2. Includes participation certificates reclassified as debt beginning Oct. 1,1976. 9. The Financing Corporation, established in August 1987 to recapitalize the 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 4. Consists of debentures issued in payment of Federal Housing Administration October 1987. insurance claims. Once issued, these securities may be sold privately on the 10. The FFB, which began operations in 1974, is authorized to purchase or sell securities market. obligations issued, sold, or guaranteed by other federal agencies. Since FFB 5. Certificates of participation issued before fiscal 1969 by the Government incurs debt solely for the purpose of lending to other agencies, its debt is not National Mortgage Association acting as trustee for the Farmers Home Admin- included in the main portion of the table in order to avoid double counting. istration; Department of Health, Education, and Welfare; Department of Housing and Urban Development; Small Business Administration; and the Veterans 11. Includes FFB purchases of agency assets and guaranteed loans; the latter Administration. contain loans guaranteed by numerous agencies with the guarantees of any 6. Off-budget. particular agency being generally small. The Farmers Home Administration item 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- consists exclusively of agency assets, while the Rural Electrification Administratures. Some data are estimated. tion entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • March 1988 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1987 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11998844 11998855 11998866 May June July Aug. Sept. Oct. Nov/ Dec. 1 All issues, new and refunding1 106,641 214,189 147,011 6,037 10,718 6,967 6,500 5,510 6,257 7,758 6,812 Type of issue 2 General obligation 26,485 52,622 46,346 2,872 3,329 2,238 1,975 1,755 1,127 2,449 1,754 3 Revenue 80,156 161,567 100,664 3,165 7,389 4,729 4,525 3,755 5,130 5,309 5,058 Type of issuer 4 State 9,129 13,004 14,474 1,002 1,138 834 398 535 385 431 538 5 Special district and statutory authority 63,550 134,363 89,997 3,019 6,453 3,951 4,508 3,712 4,668 4,103 4,335 6 Municipalities, counties, and townships 33,962 66,822 42,541 2,017 3,127 2,182 1,594 1,263 1,204 2,579 1,939 7 Issues for new capital, total 94,050 156,050 83,490 3,848 7,552 4,478 5,084 4,340 4,095 6,628 4,850 Use of proceeds 8 Education 7,553 12,307 12,307 789 1,554 773 869 653 480 1,006 588 9 Transportation 7,552 7,246 7,246 194 705 647 226 311 168 329 441 10 Utilities and conservation 17,844 12,280 12,280 518 1,313 823 424 491 590 1,042 290 11 Social welfare 29,928 11,353 11,353 454 1,082 465 903 647 896 1,784 878 12 Industrial aid 15,415 8,502 8,502 204 498 469 1,630 412 683 229 1,095 13 Other purposes 15,758 31,801 31,801 1,689 2,399 1,301 1,033 1,826 1,278 2,238 1,558 1. Par amounts of long-term issues based on date of sale. SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986. 2. Includes school districts beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1987 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11998844 11998855 11998866 Apr. May June July Aug. Sept. Oct/ Nov. 1 All issues' 155,741 239,015 423,726 23,735 19,969 28,446 27,411 21,888 29,363r 20,657 13,700 2 Bonds2 133,113 203,500 355,293 19,518 13,431 22,094 22,071 17,685 23,705r 17,578 13,005 Type of offering 3 Public, domestic 74,175 119,559 231,936 17,634 11,394 20,564 19,045 14,852 22,045' 16,082 12,272 4 Private placement, domestic 36,324 46,195 80,761 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5. Sold abroad 22,613 37,781 42,5% 1,884 2,037 1,530 3,026 2,833 1,660 1,4% 733 Industry group 6 Manufacturing 32,804 63,973 91,548 2,734 5,035 4,104 5,552 3,343 3,506 2,699 1,224 7 Commercial and miscellaneous 14,792 17,066 40,124 1,683 754 2,061 1,037 1,281 1,479 1,165 483 8 Transportation 4,784 6,020 9,971 168 21 0 343 2% 25 263 0 9 Public utility 10,9% 13,649 31,426 1,370 572 2,091 1,654 1,533 1,702 997 893 10 Communication 3,400 10,832 16,659 175 138 205 119 856 930 1,384 270 11 Real estate and financial 66,336 91,958 165,564 13,389 6,912 13,632 13,366 10,377 16,063r 11,071 10,134 12 Stocks3 22,628 35,515 68,433 4,217 6,538 6,352 5,340 4,203 5,658 3,079 695 Type 13 Preferred 4,118 6,505 11,514 526 1,170 1,202 1,157 906 1,112 236 162 14 Common 18,510 29,010 50,316 3,691 5,368 5,150 4,183 3,297 4,546 2,843 533 66,,660033 nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. Industry group 16 Manufacturing 4,054 5,700 15,027 653 1,066 1,438 1,046 370 858 703 237 17 Commercial and miscellaneous 6,277 9,149 10,617 2,203 1,516 1,353 879 9% 807 656 86 18 Transportation 589 1,544 2,427 230 3 492 379 0 11 40 149 19 Public utility 1,624 1,966 4,020 297 374 329 472 85 529 75 25 20 Communication 419 978 1,825 18 200 199 294 277 75 107 1 21 Real estate and financial 9,665 16,178 34,517 816 3,379 2,541 2,270 2,475 3,378 1,498 197 1. Figures which represent gross proceeds of issues maturing in more than one 2. Monthly data include only public offerings. year, are principal amount or number of units multiplied by offering price. 3. Data are not available on a monthly basis. Excludes secondary offerings, employee stock plans, investment companies other SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange than closed-end, intracorporate transactions, equities sold abroad, and Yankee Commission and the Board of Governors of the Federal Reserve System. bonds. Stock data include ownership securities issued by limited partnerships. 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 1987 IItteemm 11998855 11998866 Apr. May June July Aug. Sept. Oct. Nov. INVESTMENT COMPANIES1 1 Sales of own shares2 222,670 411,751 42,857 28,295 28,637 27,970 26,455 24,834 25,990 21,927 2 Redemptions of own shares3 132,440 239,394 37,448 23,453 23,693 22,807 22,561 28,323 34,597 20,400 3 Net sales 90,230 172,357 5,409 4,842 4,944 5,763 3,894 -3,489 -8,607 1,507 4 Assets4 251,695 424,156 502,487 500,634 516,866 531,022 539,171 521,007 456,422 446,106 20,607 30,716 43,009 39,158 41,467 41,587 40,802 42,397 40,929 41,428 6 Other 231,088 393,440 459,478 461,476 475,099 489,435 498,369 478,610 415,493 404,678 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 Q4 Q1 Q2 Q3 Q4 Ql Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 266.9 277.6 284.4 277.8 288.0 282.3 286.4 281.1 294.0 296.8 314.9 2 Profits before tax 239.9 224.8 231.9 233.5 218.9 224.4 236.3 247.9 257.0 268.7 284.9 3 Profits tax liability 93.9 96.7 105.0 99.1 98.1 102.1 106.1 113.9 128.0 134.2 143.0 4 Profits after tax 146.1 128.1 126.8 134.4 120.9 122.3 130.2 134.0 129.0 134.5 141.9 5 Dividends 79.0 81.3 86.8 81.7 84.3 86.6 87.7 88.6 90.3 92.4 95.2 6 Undistributed profits 67.0 46.8 40.0 52.7 36.6 35.7 42.5 45.4 38.7 42.1 46.7 7 Inventory valuation -5.8 -.8 6.5 -9.8 17.8 11.3 6.0 -8.9 -11.3 -20.0 -17.6 8 Capital consumption adjustment 32.8 53.5 46.0 54.2 51.3 46.7 44.0 42.1 48.2 48.0 47.7 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • March 1988 1.49 NONFINANCIAL CORPORATIONS Assets and Liabilities1 Billions of dollars, except for ratio 1985 1986 AAccccoouunntt 11998800 11998811 11998822 11998833 11998844 QI Q2 Q3 Q4 QL 1 Current assets 1,328.3 1,419.6 1,437.1 1,565.9 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 1.459 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. 1986 1987 1988 IInndduussttrryy 11998855 11998866 1199887711 Q2 Q3 Q4 Ql Q2 Q3 Q41 Ql2 1 Total nonfarm business 387.13 379.47 390.57 376.21 375.50 386.09 374.23 377.65 393.13 417.25 427.97 Manufacturing 2 Durable goods industries 73.27 69.14 71.85 68.56 69.42 69.87 70.47 68.76 71.78 76.40 78.41 3 Nondurable goods industries 80.21 73.56 76.01 73.62 70.01 74.20 70.18 72.03 75.78 86.05 86.27 Nonmanufacturing 4 Mining 15.88 11.22 11.18 11.29 10.14 10.31 10.31 11.02 11.64 11.74 11.86 Transportation •» Railroad 7.08 6.66 6.15 6.70 7.02 6.41 5.55 5.77 6.21 7.08 7.66 6 Air 4.79 6.26 6.53 5.87 5.78 6.84 7.46 5.72 5.91 7.03 8.35 7 Other 6.15 5.89 6.42 5.83 6.01 6.25 5.97 6.19 7.05 6.48 6.92 Public utilities 8 Electric 36.11 33.91 31.65 33.77 33.81 33.78 30.85 31.13 31.31 33.32 31.65 9 Gas and other 12.71 12.47 12.88 12.66 12.00 12.34 12.75 12.35 13.58 12.84 13.72 10 Commercial and other 150.94 160.38 167.89 157.91 161.31 166.08 160.70 164.69 169.87 176.29 183.15 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 1986 1987 AAccccoouunntt 11998833 11998844 11998855 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 83.3 89.9 113.4 117.2 125.1 137.1 136.5 133.9 138.0 144.4 2 Business 113.4 137.8 158.3 165.9 167.7 161.0 174.8 182.8 189.0 188.7 3 Real estate 20.5 23.8 28.9 29.9 30.8 32.1 33.7 35.1 36.9 38.3 4 Total 217.3 251.5 300.6 312.9 323.6 330.2 345.0 351.8 363.9 371.5 Less: 5 Reserves for unearned income 30.3 33.8 39.2 40.0 40.7 42.4 41.4 40.4 41.2 42.8 6 Reserves for losses 3.7 4.2 4.9 5.0 5.1 5.4 5.8 5.9 6.2 6.6 7 Accounts receivable, net 183.2 213.5 256.5 268.0 277.8 282.4 297.8 305.5 316.5 322.1 8 All other 34.4 35.7 45.3 48.8 48.8 59.9 57.9 59.0 57.7 65.0 9 Total assets 217.6 249.2 301.9 316.8 326.6 342.3 355.6 364.5 374.2 387.1 LIABILITIES 10 Bank loans 18.3 20.0 20.6 19.0 19.2 20.2 22.2 17.3 17.2 16.2 11 Commercial paper 60.5 73.1 99.2 104.3 108.4 112.8 117.8 119.1 120.4 123.5 Debt 12 Other short-term 11.1 12.9 12.5 13.4 15.4 16.0 17.2 21.6 24.4 26.9 13 Long-term 67.7 77.2 93.1 101.0 105.2 109.8 115.6 118.4 121.5 128.0 14 All other liabilities 31.2 34.5 40.9 42.3 40.1 44.1 43.4 46.3 48.3 48.7 15 Capital, surplus, and undivided profits 28.9 31.5 35.7 36.7 38.4 39.4 39.4 41.8 42.3 43.8 16 Total liabilities and capital 217.6 249.2 301.9 316.8 326.6 342.3 355.6 364.5 374.2 387.1 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 Changes in accounts Extensions Repayments AAAccccccooouuunnntttsss receivable rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuu NNN tttsss ooo ttt vvv aaannn ... ddd 333 iii 000 nnn ggg 1987 1987 1987 111999888777111 Sept. Oct. Nov. Sept. Oct. Nov. Sept. Oct. Nov. 1 Total 197,881 1,754 4,337 1,250 30,294 30,929 30,336 28,540 26,592 29,087 Retail financing of installment sales 2 Automotive (commercial vehicles) 33,481 -16 735 447 1,365 1,159 1,283 1,382 424 836 3 Business, industrial, and farm equipment 24,554 529 258 -25 1,688 1,526 1,395 1,158 1,268 1,420 Wholesale financing 4 Automotive 29,638 -1,029 3,485 261 10,810 12,557 12,662 11,839 9,072 12,401 5 Equipment 5,611 -1 249 61 710 886 623 711 637 562 6 All other 7,904 223 -1,455 121 3,251 2,983 3,043 3,028 4,437 2,921 Leasing 7 Automotive 21,065 561 -197 211 1,340 1,117 1,117 779 1,314 906 8 Equipment 40,815 422 188 -92 952 1,245 881 530 1,057 973 9 Loans on commercial accounts receivable and factored commercial accounts receivable 18,632 248 704 331 8,488 8,241 8,005 8,240 7,537 7,674 10 All other business credit 16,181 817 369 -67 1,690 1,215 1,326 873 846 1,393 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

A38 Domestic Nonfinancial Statistics • March 1988 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1987 IItteemm 11998855 11998866 11998877 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 104.1 118.1 136.9 131.8 134.6 141.2 140.2 145.3 145.7 2 Amount of loan (thousands of dollars) 77.4 86.2 100.4 97.5 99.4 102.6 100.8 106.1 100.2' 106.4 3 Loan/price ratio (percent) 77.1 75.2 75.2 75.9 75.4 75.0 74.6 75.0 75.4r 74.9 4 Maturity (years) . 26.9 26.6 27.8 28.0 27.9 27.8 27.3 28.3 28.3' 28.1 5 Fees and charges (percent of loan amount) 2.53 2.48 2.26 2.40 2.42 2.19 2.08 2.34 2.33r 2.25 6 Contract rate (percent per year) 11.12 9.82 8.94 9.05 9.01 9.01 9.03 8.86 8.92r 8.80 Yield (percent per year) 7 FHLBB series 11.58 10.25 9.32 9.45 9.41 9.38 9.37 9.25 9.3C 9.17 8 HUD series4 12.28 10.07 n.a. 10.29 10.22 10.37 10.86 10.87 n.a. n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 12.24 9.91 n.a. 10.33 10.38 10.55 10.71 10.90 n.a. n.a. 10 GNMA securities6 11.61 9.30 9.42 9.50 9.59 9.77 10.40 10.53 9.96 10.18 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 94,574 98,048 n.a. 94,064 94,154 94,600 94,884 95,097 95,411 n.a. 12 FHA/VA-insured 34,244 29,683 n.a. 21,892 21,730 21,555 21,620 21,481 21,510 n.a. 13 Conventional 60,331 68,365 n.a. 72,173 72,424 73,045 73,264 73,617 73,902 n.a. Mortgage transactions (during period) 14 Purchases 21,510 30,826 n.a. 1,690 1,569 1,613 1,743 1,278 1,297 n.a. Mortgage commitments1 15 Contracted (during period) 20,155 32,987 n.a. 1,745 2,373 2,276 1,842 1,566 2,899 n.a. 16 Outstanding (end of period) 3,402 3,386 n.a. 4,448 5,071 5,690 5,627 5,046 5,845 n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 1 1 8 7 To F ta H l A/VA 12,3 8 9 4 9 1 13,5 7 1 4 7 6 n n . . a a . . 12, 6 59 9 8 4 ' 12, 6 8 8 3 4 4 12, 6 9 7 2 9 4 12, 6 9 7 4 2 0 12, 6 78 6 2 6 TA TA 19 Conventional 11,559 12,771 n.a. 11,903 12,150 12,245 12,269 12,115 Mortgage transactions (during period) 1 1 20 Purchases 44,012 103,474 n.a. 7,864 7,252 5,031 4,297 3,079 n.a. n.a. 21 Sales 38,905 100,236 n.a. 7,447 6,831 4,723 4,160 3,111 1 1 Mortgage commitments9 22 Contracted (during period) 48,989 110,855 n.a. 7,330 5,611 4,506 3,507 3,011 t T 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associmajor institutional lender groups; compiled by the Federal Home Loan Bank ation guaranteed, mortgage-backed, fully modified pass-through securities, as- Board in cooperation with the Federal Deposit Insurance Corporation. suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying 2. Includes all fees, commissions, discounts, and "points" paid (by the the prevailing ceiling rate. Monthly figures are averages of Friday figures from the borrower or the seller) to obtain a loan. Wall Street Journal. 3. Average effective interest rates on loans closed, assuming prepayment at the 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. 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 Q3 Q4 Ql Q2 Q3 1 All holders 2,035,238 2,269,173 2,566,734 2,472,285 2,566,734 2,662,331 2,754,471 2,827,622 2 1- to 4-family 1,318,545 1,467,409 1,666,421 1,607,857 1,666,421 1,712,109 1,778,306 1,830,432 3 Multifamily 185,604 214,045 246,984 237,754 246,984 257,286 266,383 272,757 4 Commercial 419,444 482,029 556,569 527,163 556,569 599,384 617,627 633,167 5 111,645 105,690 96,760 99,511 96,760 93,552 92,155 91,266 6 Selected financial institutions 1,269,702 1,390,394 1,507,289 1,464,924 1,507,289 1,560,403 1,607,771 1,646,764 7 Commercial banks2 379,498 429,196 502,534 474,658 502,534 519,474 544,381 563,553 8 1- to 4-family 196,163 213,434 235,814 228,593 235,814 243,518 255,672 264,983 9 Multifamily 20,264 23,373 31,173 28,623 31,173 29,515 30,496 30,995 10 Commercial 152,894 181,032 222,799 204,996 222,799 233,234 244,385 253,261 11 Farm 10,177 11,357 12,748 12,446 12,748 13,207 13,828 14,314 12 Savings institutions3 709,718 760,499 777,312 772,175 777,312 810,099 826,110 840,251 n 1- to 4-family 528,791 554,301 558,412 557,938 558,412 557,234 569,594 580,605 14 Multifamily 75,567 89,739 97,059 94,227 97,059 103,791 105,871 107,629 IS Commercial 104,896 115,771 121,236 119,406 121,236 148,274 149,842 151,213 16 Farm 464 688 605 604 605 800 803 804 17 Life insurance companies 156,699 171,797 193,842 185,980 193,842 195,743 200,382 204,632 18 1- to 4-family 14,120 12,381 12,827 12,985 12,827 12,903 12,745 12,745 19 Multifamily 18,938 19,894 20,952 20,802 20,952 20,934 21,663 21,863 20 Commercial 111,175 127,670 149,111 140,841 149,111 151,420 155,611 159,811 21 Farm 12,466 11,852 10,952 11,352 10,952 10,486 10,363 10,213 22 Finance companies 23,787 28,902 33,601 32,111 33,601 35,087 36,898 38,328 23 Federal and related agencies 158,993 166,928 203,800 159,505 203,800 199,509 196,514 191,561 24 Government National Mortgage Association 2,301 1,473 889 887 889 687 667 654 25 1- to 4-family 585 539 47 48 47 46 45 44 26 Multifamily 1,716 934 842 839 842 641 622 610 27 Farmers Home Administration 1,276 733 48,421 457 48,421 48,203 48,085 42,978 28 1- to 4-family 213 183 21,625 132 21,625 21,390 21,157 18,111 29 Multifamily 119 113 7,608 57 7,608 7,710 7,808 7,903 30 Commercial 497 159 8,446 115 8,446 8,463 8,553 6,592 31 Farm 447 278 10,742 153 10,742 10,640 10,567 10,372 32 Federal Housing and Veterans Administration 4,816 4,920 5,047 4,966 5,047 5,177 5,268 5,175 33 1- to 4-family 2,048 2,254 2,386 2,331 2,386 2,447 2,531 2,435 34 Multifamily 2,768 2,666 2,661 2,635 2,661 2,730 2,737 2,740 35 Federal National Mortgage Association 87,940 98,282 97,895 97,717 97,895 95,140 94,064 94,884 36 1- to 4-family 82,175 91,966 90,718 90,508 90,718 88,106 87,013 87,901 37 Multifamily 5,765 6,316 7,177 7,209 7,177 7,034 7,051 6,983 38 Federal Land Banks 52,261 47,498 39,984 42,119 39,984 37,362 35,833 34,930 39 1- to 4-family 3,074 2,798 2,353 2,478 2,353 2,198 2,108 2,055 40 Farm 49,187 44,700 37,631 39,641 37,631 35,164 33,725 32,875 41 Federal Home Loan Mortgage Corporation 10,399 14,022 11,564 13,359 11,564 12,940 12,597 12,940 47 1- to 4-family 9,654 11,881 10,010 11,127 10,010 11,774 11,172 11,570 43 Multifamily 745 2,141 1,554 2,232 1,554 1,166 1,425 1,370 44 Mortgage pools or trusts6 332,057 415,042 529,763 522,721 529,763 571,705 612,340 641,239 45 Government National Mortgage Association 179,981 212,145 260,869 241,230 260,869 277,386 290,444 302,016 46 1- to 4-family 175,589 207,198 255,132 235,664 255,132 271,065 283,357 294,647 47 Multifamily 4,392 4,947 5,737 5,566 5,737 6,321 7,087 7,369 48 Federal Home Loan Mortgage Corporation 70,822 100,387 171,372 146,871 171,372 186,295 200,284 208,350 49 1- to 4-family 70,253 99,515 166,667 143,734 166,667 180,602 194,238 201,786 50 Multifamily 569 872 4,705 3,137 4,705 5,693 6,046 6,564 51 Federal National Mortgage Association 36,215 54,987 97,174 86,359 97,174 107,673 121,270 130,540 57, 1- to 4-family 35,965 54,036 95,791 85,171 95,791 106,068 119,617 128,770 53 Multifamily 250 951 1,383 1,188 1,383 1,605 1,653 1,770 54 Farmers Home Administration 45,039 47,523 348 48,261 348 351 342 333 55 1- to 4-family 21,813 22,186 142 21,782 142 154 149 144 56 Multifamily 5,841 6,675 0 0 0 0 0 0 57 Commercial 7,559 8,190 132 8,409 132 127 126 124 58 Farm 9,826 10,472 74 10,717 74 70 67 65 59 Individuals and others7 274,486 296,809 325,882 325,135 325,882 330,714 337,846 348,058 60 1- to 4-family 154,315 165,835 180,896 183,255 180,896 179,517 182,010 186,308 61 Multifamily 48,670 55,424 66,133 63,886 66,133 70,146 73,924 76,961 67 Commercial 42,423 49,207 54,845 53,396 54,845 57,866 59,110 62,166 63 29,078 26,343 24,008 24,598 24,008 23,185 22,802 22,623 1. Based on data from various institutional and governmental sources, with 5. FmHA-guaranteed securities sold to the Federal Financing Bank were some quarters estimated in part by the Federal Reserve. Multifamily debt refers reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4, to loans on structures of five or more units. because of accounting changes by the Farmers Home Administration. 2. Includes loans held by nondeposit trust companies but not bank trust 6. Outstanding principal balances of mortgage pools backing securities insured departments. or guaranteed by the agency indicated. 3. Includes savings banks and savings and loan associations. Beginning 1987:1, 7. Other holders include mortgage companies, real estate investment trusts, data reported by FSLIC-insured institutions include loans in process and other state and local credit agencies, state and local retirement funds, noninsured contra assets. pension funds, credit unions, and other U.S. agencies. 4. Assumed to be entirely 1- to 4-family loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • March 1988 1.55 CONSUMER INSTALLMENT CREDIT14 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars 1987 Holder, and type of credit 1985 1986 Mar. Apr. May June July Aug. Sept. Oct/ Amounts outstanding (end of period) 1 Total 522,805 577,784 579,913 583,595 583,276 587,821 591,175 596,182 602,607 605,488 607,707 By major holder 2 Commercial banks .... 242,084 261,604 261,933 263,433 263,463 264,396 265,085 265,893 269,155 270,836 272,240 3 Finance companies ... 113,070 136,494 136,050 137,091 136,398 138,038 138,745 140,689 142,648 143,118 142,767 4 Credit unions 72,119 77,857 78,569 79,255 79,476 80,585 81,492 82,486 83,340 83,639 84,343 5 Retailers 38,864 40,586 40,469 40,467 40,318 40,287 40,364 40,391 40,482 40,678 40,559 6 Savings institutions ... 52,433 58,037 59,488 59,826 60,045 60,983 61,910 63,080 63,279 63,525 64,198 7 Gasoline companies ... 4,235 3,205 3,405 3,522 3,576 3,532 3,580 3,643 3,703 3,691 3,600 By major type of credit 8 Automobile 208,057 245,055 246,290 247,663 247,578 250,130 250,980 254,013 257,470 258,710 258,907 9 Commercial banks .. 93,003 100,709 101,528 101,781 102,189 102,810 102,829 103,382 104,662 105,382 105,910 10 Credit unions 35,635 39,029 39,386 39,730 39,841 40,396 40,851 41,349 41,777 41,927 42,280 11 Finance companies.. 70,091 93,274 93,032 93,738 93,089 94,270 94,455 96,193 97,900 98,219 97,395 12 Savings institutions . 9,328 12,043 12,344 12,414 12,459 12,654 12,846 13,089 13,130 13,182 13,321 13 Revolving 122,021 134,938 135,166 136,706 136,869 137,401 138,741 139,837 141,704 143,142 143,599 14 Commercial banks .. 75,866 85,652 85,567 86,929 87,133 87,590 88,685 89,535 91,226 92,459 93,014 15 Retailers 34,695 36,240 36,141 36,139 36,009 35,971 36,021 36,022 36,087 36,264 36,148 16 Gasoline companies. 4,235 3,205 3,405 3,522 3,576 3,532 3,580 3,643 3,703 3,691 3,600 17 Savings institutions . 5,705 7,713 7,906 7,951 7,980 8,105 8,228 8,383 8,410 8,443 8,532 18 Credit unions 1,520 2,128 2,147 2,166 2,172 2,202 2,227 2,254 2,278 2,286 2,305 19 Mobile home 25,488 25,710 25,614 25,626 25,542 25,685 25,860 25,695 25,699 25,677 25,689 20 Commercial banks .. 9,538 8,812 8,725 8,698 8,615 8,609 8,626 8,518 8,538 8,453 8,406 21 Finance companies.. 9,391 9,028 8,823 8,816 8,785 8,807 8,839 8,623 8.580 8,610 8,578 22 Savings institutions . 6,559 7,870 8,067 8,112 8,142 8,269 8,395 8,554 8.581 8,614 8,705 23 Other 167,239 172,081 172,844 173,600 173,287 174,605 175,594 176,637 177,733 177,959 179,513 24 Commercial banks .. 63,677 66,431 66,113 66,026 65,527 65,387 64,945 64,458 64,728 64,542 64,910 25 Finance companies.. 33,588 34,192 34,196 34,537 34,524 34,962 35,452 35,874 36,168 36,289 36,794 26 Credit unions 34,964 36,700 37,036 37,359 37,463 37,986 38,413 38,882 39,285 39,426 39,757 27 Retailers 4,169 4,346 4,327 4,328 4,310 4,315 4,343 4,369 4,395 4,415 4,411 28 Savings institutions . 30,841 30,412 31,172 31,349 31,463 31,955 32,441 33,054 33,158 33,287 33,640 Net change (during period) 29 Total 76,622 54,979 322 3,682 -319 4,545 3,354 5,007 6,425 2,881 2,219 By major holder 30 Commercial banks 32,926 19,520 -172 1,500 30 933 689 808 3,262 1,681 1,404 31 Finance companies 23,566 23,424 41 1,041 -693 1,640 707 1,944 1,959 470 -351 32 Credit unions 6,493 5,738 77 686 221 1,109 907 994 854 299 704 33 Retailers3 1,660 1,722 -175 -2 -149 -31 77 27 91 1% -119 34 Savings institutions 12,103 5,604 457 338 219 938 927 1,170 199 246 673 35 Gasoline companies -126 -1,030 94 117 54 -44 48 63 60 -12 -91 By major type of credit 36 Automobile 35,705 36,998 226 1,373 -85 2,552 850 3,033 3,457 1,240 197 37 Commercial banks 9,103 7,706 -160 253 408 621 19 553 1,280 720 528 38 Credit unions 5,330 3,394 39 344 111 555 455 498 428 150 353 39 Finance companies 17,840 23,183 252 706 -649 1,181 185 1,738 1,707 319 -824 40 Savings institutions 3,432 2,715 95 70 45 195 192 243 41 52 139 41 Revolving 22,401 12,917 -497 1,540 163 532 1,340 1,096 1,867 1,438 457 42 Commercial banks 17,721 9,786 -486 1,362 204 457 1,095 850 1,691 1,233 555 43 Retailers 1,488 1,545 -167 -2 -130 -38 50 1 65 177 -116 44 Gasoline companies -126 -1,030 94 117 54 -44 48 63 60 -12 -91 45 Savings institutions 2,771 2,008 61 45 29 125 123 155 27 33 89 46 Credit unions 547 608 2 19 6 30 25 27 24 8 19 47 Mobile home 778 222 -175 12 -84 143 175 -165 4 -22 12 48 Commercial banks -85 -726 -14 -27 -83 -6 17 -108 20 -85 -47 49 Finance companies -405 -363 -222 -7 -31 22 32 -216 -43 30 -32 50 Savings institutions 1,268 1,311 62 45 30 127 126 159 27 33 91 51 Other 17,738 4,842 768 756 -313 1,318 989 1,043 1,096 226 1,554 52 Commercial banks 6,187 2,754 488 -87 -499 -140 -442 -487 270 -186 368 53 Finance companies 6,131 604 13 341 -13 438 490 422 294 121 505 54 Credit unions 616 1,736 37 323 104 523 427 469 403 141 331 55 Retailers 172 177 -9 1 -18 5 28 26 26 20 -4 56 Savings institutions 4,632 -429 240 177 114 492 486 613 104 129 353 1, The Board's series cover most short- and intermediate-term credit ex- 2. More detail for finance companies is available in the G.20 statistical release. tended to individuals that is scheduled to be repaid (or has the option of 3. Excludes 30-day charge credit held by travel and entertainment companies. repayment) in 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 1987 IItteemm 11998844 11998855 11998866 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks1 1 48-month new car 13.71 12.91 11.33 10.23 n.a. n.a. 10.37 n.a. n.a. 10.86 2 24-month personal — 16.47 15.94 14.82 14.00 n.a. n.a. 14.22 n.a. n.a. 14.58 3 120-month mobile home2 15.58 14.96 13.99 13.23 n.a. n.a. 13.24 n.a. n.a. 13.62 4 Credit card 18.77 18.69 18.26 17.92 n.a. n.a. 17.85 n.a. n.a. 17.82 Auto finance companies 5 New car 14.62 11.98 9.44 10.69 10.64 10.52 9.63 8.71 10.31 12.24 6 Used car 17.85 17.59 15.95 14.45 14.47 14.53 14.53 14.58 14.76 14.90 OTHER TERMS3 Maturity (months) 7 New car 48.3 51.5 50.0 53.5 53.6 53.4 52.1 50.7 52.8 55.4 8 Used car 39.7 41.4 42.6 45.2 45.4 45.5 45.4 45.2 45.2 45.3 Loan-to-value ratio 9 New car 88 91 91 93 93 93 93 93 93 94 10 Used car 92 94 97 98 98 98 98 98 99 99 Amount financed (dollars) 11 New car 9,333 9,915 10,665 11,176 11,214 11,267 11,374 11,455 11,585 11,630 12 Used car 5,691 6,089 6,555 7,373 7,479 7,527 7,763 7,476 7,537 7,646 1. Data for midmonth of quarter only. 3. At auto finance companies. 2. Before 1983 the maturity for new car loans was 36 months, and for mobile NOTE. These data also appear in the Board's G.19 (421) release. For address, home loans was 84 months. see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • March 1988 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1984 1985 1986 1987 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998822 11998833 11998844 11998855 11998866 HI H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 388.9 550.2 753.9 854.8 833.4 717.3 790.4 722.7 986.8 676.9 989.9 568.3 By sector and instrument ? 161.3 186.6 198.8 223.6 214.3 190.4 207.2 204.8 242.5 207.2 222211..55 115511..44 3 Treasury securities 162.1 186.7 199.0 223.7 214.7 190.7 207.3 204.9 242.5 207.4 222.0 151.7 4 Agency issues and mortgages -.9 -.1 -.2 -.1 -.3 -.2 -.1 -.1 -.1 -.1 -.5 -.4 5 Private domestic nonfinancial sectors 227.6 363.6 555.1 631.1 619.0 526.9 583.3 518.0 744.3 469.6 768.4 417.0 6 Debt capital instruments 148.3 253.4 313.6 447.8 445.0 284.7 342.5 350.4 545.2 363.4 546.7 407.1 7 Tax-exempt obligations 44.2 53.7 50.4 136.4 35.4 33.8 67.0 67.0 205.8 -16.9 87.7 20.0 8 18.7 16.0 46.1 73.8 121.7 22.5 69.8 62.2 85.3 135.3 108.1 89.0 9 85.4 183.6 217.1 237.7 298.0 228.5 205.7 221.2 254.2 245.0 350.9 298.1 10 Home mortgages 50.5 117.5 129.7 151.9 199.4 139.5 119.9 139.2 164.7 163.8 234.9 217.5 11 Multifamily residential 5.4 14.2 25.1 29.2 33.0 27.8 22.4 25.0 33.4 31.2 34.8 27.7 1? Commercial 25.2 49.3 63.2 62.5 73.9 62.6 63.8 59.5 65.5 58.9 88.9 62.5 13 Farm 4.2 2.6 -.9 -6.0 -8.3 -1.4 -.4 -2.5 -9.5 -8.9 -7.7 -9.6 14 Other debt instruments 79.3 110.2 241.5 183.3 164.0 242.2 240.8 167.5 199.1 106.2 221.8 9.9 15 19.3 56.6 90.4 94.6 65.8 94.7 86.2 95.3 93.9 71.0 60.6 15.7 16 Bank loans n.e.c 50.4 23.2 67.1 38.6 66.5 71.2 63.0 21.0 56.2 12.2 120.8 -40.2 17 Open market paper -6.1 -.8 21.7 14.6 -9.3 26.6 16.8 14.4 14.8 -13.1 -5.5 4.5 18 Other 15.8 31.3 62.2 35.5 41.0 49.7 74.7 36.8 34.2 36.2 45.9 29.9 19 By borrowing sector 227.6 363.6 555.1 631.1 619.0 526.9 583.3 518.0 744.3 469.6 768.4 417.0 ?n State and local governments 21.5 34.0 27.4 91.8 46.4 16.2 38.6 56.3 127.2 3.1 89.7 28.6 ?1 90.0 188.2 234.6 293.4 279.9 235.0 234.2 259.8 327.1 232.8 326.9 224.0 ?? 6.8 4.1 -.1 -13.9 -15.1 -.5 .4 -7.0 -20.8 -16.8 -13.3 -19.5 73 Nonfarm noncorporate 40.2 77.0 97.0 93.1 115.9 101.8 92.2 85.7 100.5 96.2 135.5 92.8 24 Corporate 69.0 60.3 196.0 166.7 192.0 174.3 217.8 123.2 210.3 154.3 229.7 91.2 25 Foreign net borrowing in United States 16.0 17.3 8.3 1.2 9.0 36.1 -19.4 -5.8 8.2 21.5 -3.5 -12.6 76 Bonds 6.6 3.1 3.8 3.8 2.6 1.3 6.3 5.5 2.1 6.2 -1.1 -1.1 ?7 Bank loans n.e.c -5.5 3.6 -6.6 -2.8 -1.0 -1.3 -11.9 -5.8 .1 1.5 -3.5 -3.5 78 Open market paper 1.9 6.5 6.2 6.2 11.5 16.6 -4.3 2.8 9.6 19.1 3.9 -5.3 29 U.S. government loans 13.0 4.1 5.0 -6.0 -4.0 19.5 -9.6 -8.2 -3.7 -5.3 -2.7 -2.8 30 Total domestic plus foreign 404.8 567.5 762.2 856.0 842.4 753.4 771.0 716.9 995.0 698.3 986.4 555.7 Financial sectors 31 Total net borrowing by financial sectors ... 90.3 99.3 151.9 199.0 291.1 153.0 150.7 175.1 222.8 238.8 343.4 317.5 By instrument 32 U.S. government related 64.9 67.8 74.9 101.5 174.3 72.5 77.3 96.8 106.3 133.8 214.8 180.2 33 Sponsored credit agency securities 14.9 1.4 30.4 20.6 13.2 29.4 31.5 26.6 14.6 6.4 20.0 7.8 34 Mortgage pool securities 49.5 66.4 44.4 79.9 161.4 43.1 45.8 70.3 89.5 126.6 196.3 171.8 35 Loans from U.S. government .4 1.1 -.4 2.2 .8 -1.5 .5 36 Private financial sectors 25.4 31.5 77.0 97.4 116.8 80.5 73.5 ' 78.3 116.5 105.0 128.6 137.4 37 Corporate bonds 12.7 17.4 36.2 48.6 68.7 30.8 41.5 48.9 48.3 70.9 66.5 92.5 38 Mortgages .1 * .4 .1 .1 .4 .4 * .1 .6 -.5 .2 39 Bank loans n.e.c 1.9 -.1 .7 2.6 4.0 .6 .7 2.3 2.9 4.0 4.0 -7.4 40 Open market paper 9.9 21.3 24.1 32.0 24.2 32.1 16.0 14.6 49.4 15.1 33.4 38.3 41 Loans from Federal Home Loan Banks .8 -7.0 15.7 14.2 19.8 16.5 14.9 12.5 15.9 14.4 25.2 13.6 By sector 42 Sponsored credit agencies 15.3 1.4 30.4 21.7 12.9 29.4 31.5 26.6 16.8 7.2 18.5 8.3 43 Mortgage pools 49.5 66.4 44.4 79.9 161.4 43.1 45.8 70.3 89.5 126.6 196.3 171.8 44 Private financial sectors 25.4 31.5 77.0 97.4 116.8 80.5 73.5 78.3 116.5 105.0 128.6 137.4 45 Commercial banks 11.7 5.0 7.3 -4.9 -3.6 19.8 -5.3 -4.7 -5.0 -2.7 -4.6 4.4 46 Bank affiliates 6.8 12.1 15.6 14.5 4.6 20.4 10.8 10.2 18.9 -1.7 10.9 21.6 47 Savings and loan associations 2.5 -2.1 22.7 22.3 29.3 22.0 23.3 14.2 30.4 25.5 33.1 30.7 48 Finance companies 4.5 12.9 18.9 53.9 50.2 8.2 29.6 49.7 58.1 53.1 47.2 27.2 49 REITs -.2 -.1 .1 -.7 -.3 .2 .1 -.6 -.8 .6 -1.3 -.2 50 CMO Issuers .2 3.7 12.4 12.2 36.7 9.8 15.0 9.5 14.9 30.2 43.3 53.7 All sectors 51 Total net borrowing 495.1 666.8 914.1 1,054.9 1,133.5 906.4 921.8 892.1 1,217.8 937.1 1,329.8 873.2 52 U.S. government securities . 225.9 254.4 273.8 324.2 389.0 263.1 284.5 301.7 346.6 340.2 437.8 331.0 53 State and local obligations .. 44.2 53.7 50.4 136.4 35.4 33.8 67.0 67.0 205.8 -16.9 87.7 20.0 54 Corporate and foreign bonds 38.0 36.5 86.1 126.1 192.9 54.6 117.6 116.6 135.7 212.4 173.5 180.5 55 Mortgages 85.4 183.6 217.4 237.7 298.0 228.8 206.0 221.2 254.2 245.6 350.4 298.3 56 Consumer credit 19.3 56.6 90.4 94.6 65.8 94.7 86.2 95.3 93.9 71.0 60.6 15.7 57 Bank loans n.e.c 46.7 26.7 61.1 38.3 69.5 70.4 51.8 17.5 59.2 17.7 121.3 -51.0 58 Open market paper 5.7 26.9 52.0 52.8 26.4 75.4 28.6 31.8 73.7 21.0 31.7 37.5 59 Other loans 30.0 28.4 82.9 44.8 56.5 85.7 80.0 41.1 48.6 46.1 66.9 41.1 External corporate equity funds raised in United States 60 Total new share issues 25.8 61.8 -36.4 19.9 91.6 -47.9 -24.9 3.0 36.7 100.8 82.3 61.8 61 Mutual funds 8.8 27.2 29.3 85.7 163.3 26.5 32.2 64.2 107.1 155.5 171.1 123.3 62 All other 17 0 34.6 -65.7 -65.8 -71.7 -74.4 -57.1 -61.2 -70.4 -54.7 -88.7 -61.5 63 Nonfinancial corporations 11.4 28.3 -74.5 -81.5 -80.8 -79.5 -69.4 -75.5 -87.5 -68.7 -92.7 -70.0 64 Financial corporations 4.2 2.6 7.8 12.0 8.3 6.8 8.8 11.2 12.8 7.5 9.1 6.7 65 Foreign shares purchased in United States. 1.4 3.7 .9 3.7 .7 -1.6 3.5 3.1 4.3 6.6 -5.1 1.9 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 1987 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998822 11998833 11998844 11998855 11998866 HI H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to domestic nonfinancial sectors 388.9 550.2 753.9 854.8 833.4 717.3 790.4 722.7 986.8 676.9 989.9 568.3 By public agencies and foreign 2 Total net advances 114.9 114.0 157.6 202.3 317.3 132.7 182.5 195.8 208.7 264.1 370.6 241.3 3 U.S. government securities 22.3 26.3 39.3 47.1 84.8 27.6 51.0 50.3 43.9 74.0 95.6 46.3 4 Residential mortgages 61.0 76.1 56.5 94.6 158.5 55.5 57.4 88.6 100.7 123.8 193.2 164.9 5 FHLB advances to savings and loans .8 -7.0 15.7 14.2 19.8 16.5 14.9 12.5 15.9 14.4 25.2 13.6 6 Other loans and securities 30.8 18.6 46.2 46.3 54.2 33.2 59.2 44.4 48.2 52.0 56.5 16.5 Total advanced, by sector 7 U.S. government 15.9 9.7 17.1 16.8 9.5 7.5 26.6 25.1 8.4 10.8 8.2 -4.1 8 Sponsored credit agencies 65.5 69.8 74.3 101.5 175.5 73.3 75.2 96.4 106.7 128.2 222.8 167.7 9 Monetary authorities 9.8 10.9 8.4 21.6 30.2 12.0 4.8 27.5 15.8 13.2 47.2 10.8 10 Foreign 23.7 23.7 57.9 62.3 102.1 39.8 75.9 46.8 77.8 111.9 92.3 66.9 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 64.9 67.8 74.9 101.5 174.3 72.5 77.3 96.8 106.3 133.8 214.8 180.2 12 Foreign 16.0 17.3 8.3 1.2 9.0 36.1 -19.4 -5.8 8.2 21.5 -3.5 -12.6 Private domestic funds advanced 13 Total net advances 354.8 521.3 679.5 755.2 699.3 693.2 665.7 618.0 892.5 568.0 830.6 494.6 14 U.S. government securities 203.6 228.1 234.5 277.0 304.2 235.5 233.5 251.3 302.7 266.3 342.2 284.7 15 State and local obligations 44.2 53.7 50.4 136.4 35.4 33.8 67.0 67.0 205.8 -16.9 87.7 20.0 16 Corporate and foreign bonds 14.7 14.5 35.1 40.8 84.3 17.3 53.0 39.7 42.0 100.8 67.8 61.6 17 Residential mortgages -5.3 55.0 98.2 86.4 73.8 111.7 84.8 75.5 97.4 71.3 76.4 80.3 18 Other mortgages and loans 98.3 162.4 276.9 228.8 221.4 311.5 242.3 197.0 260.6 161.0 281.8 61.6 19 LESS: Federal Home Loan Bank advances .8 -7.0 15.7 14.2 19.8 16.5 14.9 12.5 15.9 14.4 25.2 13.6 Private financial intermediation 20 Credit market funds advanced by private financial institutions 274.2 395.8 559.8 579.5 726.1 587.5 532.1 483.8 675.2 638.9 813.2 485.1 21 Commercial banking 110.2 144.3 168.9 186.3 194.7 192.2 145.5 143.3 229.4 117.2 272.3 49.9 22 Savings institutions 22.9 135.6 150.2 83.0 105.8 167.0 133.5 54.5 111.4 94.5 117.2 85.7 23 Insurance and pension funds 96.6 100.1 121.8 156.0 175.9 148.3 95.3 139.4 172.5 170.6 181.2 213.3 24 Other finance 44.5 15.8 118.9 154.2 249.6 80.0 157.8 146.5 161.9 256.7 242.4 136.2 25 Sources of funds 274.2 395.8 559.8 579.5 726.1 587.5 532.1 483.8 675.2 638.9 813.2 485.1 26 Private domestic deposits and RPs 196.2 215.4 316.9 213.2 272.8 280.2 353.5 191.4 235.0 252.2 293.4 15.1 27 Credit market borrowing 25.4 31.5 77.0 97.4 116.8 80.5 73.5 78.3 116.5 105.0 128.6 137.4 28 Other sources 52.6 148.9 165.9 268.9 336.4 226.8 105.1 214.1 323.6 281.7 391.1 332.6 29 Foreign funds -31.4 16.3 5.4 17.7 12.4 10.9 -.1 21.3 14.2 12.3 12.5 41.8 30 Treasury balances 6.1 -5.3 4.0 10.3 1.7 -2.8 10.8 13.9 6.6 -4.2 7.6 -4.4 31 Insurance and pension reserves 106.0 109.7 118.6 141.0 152.5 162.5 74.6 118.6 163.4 138.6 166.4 234.4 32 Other, net -28.1 28.2 37.9 99.9 169.8 56.1 19.7 60.3 139.4 134.9 204.6 60.8 Private domestic nonfinancial investors 33 Direct lending in credit markets 106.0 157.0 196.7 273.2 90.1 186.2 207.1 212.5 333.9 34.1 146.1 146.9 34 U.S. government securities 68.5 99.3 123.6 145.3 43.4 162.8 84.3 156.2 134.5 37.4 49.4 69.9 35 State and local obligations 25.0 40.3 30.4 47.6 -.8 10.4 50.4 14.8 80.4 -68.7 67.2 21.7 36 Corporate and foreign bonds * -11.6 5.2 11.8 34.4 -26.4 36.9 15.4 8.2 68.1 .8 39.0 37 Open market paper -5.7 12.0 9.3 43.9 -4.8 15.6 3.0 3.5 84.2 -16.3 6.7 7.7 38 Other 18.2 17.0 28.1 24.6 17.9 23.8 32.5 22.6 26.6 13.6 22.1 8.5 39 Deposits and currency 205.5 232.8 320.4 223.5 293.2 286.8 354.0 198.3 248.7 262.0 324.4 10.2 40 Currency 9.7 14.3 8.6 12.4 14.4 13.7 3.6 15.9 8.8 10.7 18.2 10.0 41 Checkable deposits 18.0 28.6 27.9 41.4 97.7 26.0 29.8 14.6 68.2 79.9 115.5 -28.5 4? Small time and savings accounts 136.0 215.7 150.1 139.1 122.5 129.0 171.2 161.5 116.7 115.4 129.5 33.9 43 Money market fund shares 33.5 -39.0 49.0 8.9 43.8 24.5 73.4 10.6 7.1 46.9 40.6 -4.6 44 Large time deposits -2.4 -8.4 84.9 7.2 -9.3 92.0 77.9 -7.6 21.9 * -18.7 1.5 45 Security RPs 11.1 18.5 5.0 16.6 18.3 8.7 1.2 12.2 21.1 10.0 26.5 12.7 46 Deposits in foreign countries -.4 3.1 -5.1 -2.1 5.9 -7.1 -3.1 -9.0 4.9 -.9 12.8 -14.9 47 Total of credit market instruments, deposits and currency 311.5 389.9 517.1 496.7 383.3 473.0 561.1 410.7 582.6 296.0 470.5 157.1 48 Public holdings as percent of total 28.4 20.1 20.7 23.6 37.7 17.6 23.7 27.3 21.0 37.8 37.6 43.4 49 Private financial intermediation (in percent) 77.3 75.9 82.4 76.7 103.8 84.7 79.9 78.3 75.6 112.5 97.9 98.1 50 Total foreign funds -7.7 40.0 63.3 80.1 114.5 50.7 75.8 68.1 92.0 124.2 104.9 108.7 MEMO: Corporate equities not included above 51 Total net issues 25.8 61.8 -36.4 19.9 91.6 -47.9 -24.9 3.0 36.7 100.8 82.3 61.8 52 Mutual fund shares 8.8 27.2 29.3 85.7 163.5 26.5 32.2 64.2 107.1 155.5 171.1 123.3 53 Other equities 17.0 34.6 -65.7 -65.8 -71.7 -74.4 -57.1 -61.2 -70.4 -54.7 -88.7 -61.5 54 Acquisitions by financial institutions 25.9 51.1 19.7 42.8 48.2 -.2 39.7 58.8 26.8 56.6 39.7 65.5 55 Other net purchases -.1 10.7 -56.1 -22.9 43.4 -47.7 -64.6 -55.8 10.0 44.2 42.6 -3.6 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, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • March 1988 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1987 MMeeaassuurree 11998844 11998855 11998866 Apr. May June July Aug. Sept. Oct. Nov.' Dec. 1 Industrial production 121.4 123.8 125.1 127.4 128.2 129.1 130.6 131.2 131.0r 132.5r 133.1 133.3 Market groupings 2 Products, total 126.7 130.8 133.2 135.8 136.9 137.8 139.5 139.9 139.4r 141.0' 141.2 141.3 3 Final, total 127.3 131.1 132.3 134.5 135.5 136.2 137.9 138.4 137.8' 139.5' 139.5 139.4 4 Consumer goods 118.0 120.2 124.5 125.5 127.3 127.2 128.9 129.4 127.7'' 129.3 129.5 129.7 5 Equipment 139.6 145.4 142.7 146.4 146.3 148.1 149.7 150.2 151.2" 153.1' 152.8 152.4 6 Intermediate 124.7 130.0 136.4 140.3 141.8 143.3 145.0 145.3 144.9' 146.0' 146.9 147.5 7 Materials 114.2 114.2 113.9 115.9 116.3 117.2 118.5 119.4 119.7r 121.C 122.0 122.5 Industry groupings 8 Manufacturing 123.4 126.4 129.1 132.4 133.2 134.0 135.6 135.9 135.7 137.4' 138.0 138.3 Capacity utilization (percent)2 9 Manufacturing 8800..55 80.1 79.8 80.2 80.4 80.8 81.5 81.5 81.3 82.1 82.3 82.2 10 Industrial materials industries 82.0 80.2 78.5 79.1 79.3 79.8 80.6 81.1 81.2 82.0 82.6 82.8 11 Construction contracts (1982 = 100)3 135.0 148.0 155.0 162.0 149.0 161.0 163.0 171.0 157.0 166.0 153.0 159.0 12 Nonagricultural employment, total4 114.6 118.3 120.8 123.2 123.3 123.5 123.8 124.0 124.2 124.9 125.2 125.6 13 Goods-producing, total 101.6 102.4 102.4 101.7 101.7 101.7 102.1 102.2 102.4 103.C 103.4 103.8 14 Manufacturing, total 98.4 97.8 96.5 96.6 96.6 96.6 97.0 97.2 97.4 97.8 98.2 98.4 15 Manufacturing, production-worker 94.1 92.6 91.2 91.5 91.6 91.6 92.1 92.2 92.5 92.9 93.4 93.7 16 Service-producing 120.0 125.0 128.9 132.2 132.4 132.6 132.9 133.1 133.4 134.1 134.3 134.7 17 Personal income, total 193.4 207.0 219.9 230.3 230.7 231.1 232.6 233.9 235.3 239.7' 238.6 240.4 18 Wages and salary disbursements 185.0 198.7 210.2 219.5 220.7 221.2 222.3 224.2 225.4 227.1 228.6 229.5 19 Manufacturing 164.6 172.8 176.4 178.9 179.9 180.0 180.1 182.0 183.7 184.7' 185.7 186.2 20 Disposable personal income 193.5 206.0 219.1 222.5 229.6 228.9 230.4 231.6 232.9 237.7' 236.1 237.9 21 Retail sales 179.0 190.6 199.9 207.4 207.3 209.6 210.9 214.0 210.5 208.5 208.8 210.3 Prices7 22 Consumer (1967 = 100) 311.1 322.2 328.4 337.7 338.7 340.1 340.8 342.7 344.4 345.3 345.8 345.7 23 Producer finished goods (1967 = 100) ... 291.1 293.7 289.7 294.9 295.8 2%. 2 297.4 297.3 296.7 298.2 298.1 2%. 8 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 Commerce, and other sources. NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6, 3. Index of dollar value of total construction contracts, including residential, and indexes for series mentioned in notes 3 and 7 may also be found in the Survey nonresidential and heavy engineering, from McGraw-Hill Information Systems of Current Business. Company, F. W. Dodge Division. Figures for industrial production for the last two months are preliminary and 4. Based on data in Employment and Earnings (U.S. Department of Labor). estimated, respectively. 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. 1987 CCaatteeggoorryy 11998855 11998866 11998877 May June July Aug. Sept. Oct.' Nov.' Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 180,440 182,822 185,010 184,777 184,941 185,127 185,264 185,428 185,575 185,737 185,882 2 Labor force (including Armed Forces)1 117,695 120,078 122,122 122,151" 121,846' 122,132' 122,568' 122,230' 122,651 122,861 122,984 3 Civilian labor force 115,461 117,834 119,865 119,907' 119,608' 119,89c 120,306' 119,963' 120,387 120,594 120,722 4 Nonagricultural industries 103,971 106,434 109,232 109,065' 109,108' 109,427' 109,907' 109,688' 109,961 110,332 110,529 5 Agriculture 3,179 3,163 3,208 3,269' 3,192' 3,212' 3,143' 3,184' 3,249 3,172 3,215 Unemployment 6 Number 8,312 8,237 7,425 7,573' 7,308' 7,251' 7,256' 7,091' 7,177 7,090 6,978 7 Rate (percent of civilian labor force) 7.2 7.0 6.2 6.3 6.1 6.0 6.0 5.9 6.0 5.9 5.8 8 Not in labor force 62,745 62,744 62,888 62,626' 63,095' 62,995' 62,696' 63,198' 62,924 62,876' 62,898 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 97,519 99,610 102,105 101,708 101,818 102,126 102,275 102,434 102,983 103,246 103,572 10 Manufacturing 19,260 18,994 19,112 19,018 19,015 19,104 19,129 19,169 19,247 19,336 19,376 11 Mining 927 783 742 735 738 744 751 759 764 760 762 12 Contract construction 4,673 4,904 5,032 4,999 5,008 5,002 5,006 4,989 5,053 5,077 5,132 13 Transportation and public utilities 5,238 5,244 5,377 5,344 5,350 5,363 5,377 5,416 5,436 5,460 5,458 14 Trade 23,073 23,580 24,056 23,980 24,007 24,071 24,063 24,129 24,239 24,275 24,291 15 Finance 5,955 6,297 6,588 6,576 6,586 6,608 6,624 6,629 6,650 6,658 6,660 16 Service 22,000 23,099 24,136 24,025 24,083 24,214 24,279 24,295 24,406 24,472 24,615 17 Government 16,394 16,710 17,063 17,031 17,031 17,020 17,046 17,048 17,188 17,208 17,278 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • March 1988 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1987 1987 1987 SSeerriieess Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 126.9 128.2 130.9 133.0 159.5 160.4 161.3 162.2 79.5 79.9 81.2 82.0 2 Mining 98.8 99.0 100.6 103.2 130.4 129.7 129.0 128.4 75.8 76.3 78.0 80.3 3 Utilities 108.1 108.3 111.6 112.5 137.7 138.3 138.8 139.4 78.5 78.3 80.5' 80.7 4 Manufacturing 131.6 133.2 135.7 137.9 164.5 165.6 166.7 167.7 80.0 80.5 81.4 82.2 5 Primary processing 114.3 116.1 119.2 122.1 138.2 139.0 139.8 140.6 82.7 83.5 85.3' 86.9 6 Advanced processing... 142.0 143.5 145.8 147.5 180.3 181.6 182.9 184.1 78.7 79.0 79.7' 80.1 7 Materials 115.0 116.5 119.1 121.9 146.1 146.7 147.2 147.8 78.7 79.4 81.0' 82.5 8 Durable goods 121.4 122.9 125.5 129.6 162.3 163.1 163.9 164.7 74.8 75.4 76.7' 78.7 9 Metal materials 74.7 77.0 83.6 91.1 110.6 110.0 109.4 108.8 67.5 70.0 76.5' 83.8 10 Nondurable goods 121.2 124.0 128.2 129.3 145.6 143.8 144.7 145.6 84.8 86.2 88.6 91.0 11 122.3 125.1 130.5 113322..33 142.4 143.4 144.4 114455..44 85.9 87.2 9900..44 17 136.4 137.7 144.5 142.8 143.9 145.1 95.5 95.7 13 122.9 125.3 130.7 148.8 149.8 150.9 82.6 83.6 14 Energy materials 98.3 98.7 100.0 101.8 120.3 120.2 120.1 119.9 81.7 82.1 83.3 84.9 Previous cycle1 Latest cycle2 1986 1987 High Low High Low Dec. Apr. May June July Aug. Sept. Oct.' Nov.' Dec. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 79.7 79.6 79.9 80.3 81.1 81.4 81.1' 81.9 82.0 82.1 16 Mining 92.8 87.8 95.2 76.9 74.2 75.9 76.5 76.6 76.8 78.2 79.1' 80.2 80.2 80.6 17 Utilities 95.6 82.9 88.5 78.0 79.3 76.8 79.2 79.0 80.2 81.3 80.0' 80.5 81.0 80.5 18 Manufacturing 87.7 69.9 86.5 68.0 80.2 80.2 80.4 80.8 81.5 81.5 81.3 82.1 82.3 82.2 19 Primary processing 91.9 68.3 89.1 65.1 83.1 83.5 83.2 84.0 85.4 85.3 85.1 86.1 87.0 87.4 20 Advanced processing.. 86.0 71.1 85.1 69.5 78.7 78.7 79.2 79.2 79.8 79.9 79.5 80.2 80.2 80.0 21 Materials 92.0 70.5 89.1 68.5 79.1 79.1 79.3 79.8 80.6 81.1 81.2' 82.0 82.6 82.8 22 Durable goods 91.8 64.4 89.8 60.9 75.2 75.0 75.1 75.9 76.5 76.6 77.0' 78.2 78.8 79.1 23 Metal materials 99.2 67.1 93.6 45.7 68.5 68.8 69.7 71.5 73.9 77.5 78.3' 82.4 83.8 85.1 24 Nondurable goods 91.1 66.7 88.1 70.7 86.0 86.5 86.2 86.1 88.4 88.6 88.7 88.2 88.8 89.3 25 Textile, paper, and chemical 92.8 64.8 89.4 68.8 87.0 87.5 87.1 87.1 90.0 90.5 90.7 90.3 91.1 91.5 76 98.4 70.6 97.3 79.9 98.7 95.1 95.7 96.3 100.5 99.9 98.5' 97.3 98.8 ">7 92.5 64.4 87.9 63.5 83.0 83.9 83.9 83.1 85.1 86.4 87.4 88.0 88.4 28 Energy materials 94.6 86.9 94.0 82.3 81.1 81.3 82.1 82.8 82.4 84.0 83.5 84.6 85.2 84.9 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 pro- 1986 GGrroouuppss por- aavvgg.. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ OOcctt.. Nov.'' Dec.' Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 125.0 126.7 126.5 127.2 127.3 127.4 128.4 129.1 130.6 131.2 131.0 132.5 133.1 133.3 2 Products 57.72 133.2 135.0 134.9 136.1 136.2 137.2 137.2 137.8 139.5 139.9 139.4 141.0 141.2 141.3 3 Final products 44.77 132.3 133.7 133.6 135.0 135.0 134.5 135.8 136.2 137.9 138.4 137.8 139.5 139.5 139.4 4 Consumer goods 25.52 124.5 127.2 126.8 127.5 127.5 126.6 128.2 127.2 128.9 129.4 127.7 129.3 129.5 129.7 5 Equipment 19.25 142.7 142.2 142.8 144.9 145.0 144.9 145.8 148.1 149.7 150.2 151.2 153.1 152.8 152.4 6 Intermediate products..' 12.94 136.4 139.7 139.1 139.7 140.4 139.9 142.1 143.3 145.0 145.3 144.9 146.0 146.9 147.5 7 Materials 42.28 113.9 115.2 115.2 115.1 115.2 116.2 116.3 117.2 118.5 119.4 119.7 121.0 122.0 122.5 Consumer goods R Durable consumer goods 6.89 116.2 121.5 120.0 122.4 121.2 118.1 120.2 117.4 120.4 121.2 118.6 124.4 124.5 123.1 9 Automotive products 2.98 115.1 117.7 117.6 123.5 121.2 115.7 118.0 114.9 117.5 118.0 114.2 124.3 121.3 115.8 10 Autos and trucks 1.79 112.9 115.6 117.9 125.2 121.6 111.5 113.1 107.9 112.3 112.4 107.2 122.2 118.7 110.2 11 Autos, consumer 1.16 97.3 99.5 94.3 105.3 100.9 91.8 91.0 87.4 86.4 76.8 79.1 94.7 91.9 83.7 12 Trucks, consumer .63 141.8 145.6 161.9 162.1 159.9 148.1 154.2 146.0 160.4 178.4 159.4 173.2 N Auto parts and allied goods 1.19 118.4 120.8 117.1 121.0 120.5 121.9 125.3 125.4 125.3 126.6 124.8 127.5 125.1 124.2 14 Home goods 3.91 117.1 124.4 121.9 121.6 121.2 119.9 121.8 119.3 122.5 123.6 121.9 124.6 126.9 128.7 15 Appliances, A/C and TV 1.24 139.5 153.2 146.9 145.2 142.9 137.7 142.2 133.4 141.7 147.1 141.8 145.7 149.9 152.7 16 Appliances and TV 1.19 141.6 155.1 148.9 146.7 143.8 139.2 142.3 133.4 142.6 145.5 140.6 146.1 150.6 17 Carpeting and furniture .96 125.8 132.0 129.1 130.8 131.3 133.5 133.3 132.3 134.1 132.0 131.6 132.9 134.2 18 Miscellaneous home goods 1.71 96.0 99.4 99.8 99.3 99.8 99.4 100.7 101.8 102.2 102.0 102.2 104.6 106.2 19 Nondurable consumer goods 18.63 127.5 129.4 129.2 129.4 129.8 129.8 131.1 130.9 132.1 132.5 131.0 131.1 131.4 132.1 20 Consumer staples 15.29 97.0 136.0 135.9 135.9 136.5 136.4 137.7 137.6 138.9 139.2 137.8 137.7 138.0 138.7 71 Consumer foods and tobacco 7.80 134.1 133.9 132.9 134.0 134.8 134.4 135.6 136.0 137.2 137.4 137.0 137.9 137.9 22 Nonfood staples 7.49 131.9 138.2 139.0 137.9 138.2 138.5 139.9 139.2 140.6 141.2 138.6 137.5 138.2 139.4 23 Consumer chemical products 2.75 136.5 163.1 165.9 164.7 165.7 164.7 165.9 164.4 165.7 167.4 163.6 160.8 162.3 24 Consumer paper products 1.88 161.2 150.1 149.4 147.8 147.5 148.9 152.9 153.1 153.8 153.9 153.2 151.8 152.9 75 Consumer energy 2.86 147.4 106.4 106.3 105.7 105.8 106.5 106.4 105.9 108.0 107.7 105.0 105.8 105.4 26 Consumer fuel 1.44 105.7 92.2 95.0 92.5 94.1 94.5 92.1 91.9 92.7 91.4 91.6 92.4 92.0 27 Residential utilities 1.42 92.8 120.8 117.8 119.2 117.7 118.7 121.0 120.2 123.6 124.3 118.7 119.4 Equipment 28 Business and defense equipment 18.01 147.1 147.0 147.7 150.1 150.1 150.0 150.8 153.2 154.4 154.5 115555..22 115577..22 157.1 115566..99 29 Business equipment 14.34 138.6 137.1 138.1 140.8 140.8 140.8 141.7 144.2 145.6 145.6 146.3 148.7 148.7 148.2 30 Construction, mining, and farm 2.08 59.8 58.2 57.2 56.8 58.1 58.6 61.2 63.0 65.0 66.4 66.1 67.3 66.7 66.2 31 Manufacturing 3.27 112.0 108.8 110.1 111.5 110.9 111.1 111.5 117.2 120.4 120.9 122.0 120.5 122.0 122.4 V Power 1.27 81.6 80.2 79.6 81.2 81.7 82.4 84.0 84.0 81.8 82.8 81.1 83.0 83.0 82.9 33 Commercial 5.22 214.6 213.7 215.9 218.4 219.7 220.9 222.0 226.7 227.9 227.7 229.1 232.4 232.3 231.7 34 Transit 2.49 109.2 108.9 109.5 117.4 114.0 110.4 110.1 105.4 106.1 104.7 105.1 112.1 110.9 109.2 35 Defense and space equipment 3.67 180.3 185.8 185.2 186.5 186.6 186.1 186.5 188.6 188.7 189.1 189.8 190.2 190.0 191.1 Intermediate products 36 Construction supplies 5.95 124.7 127.9 128.3 128.4 128.5 127.3 128.3 131.5 133.1 132.5 132.3 133.1 134.0 134.5 37 Business supplies 6.99 146.4 149.8 148.3 149.4 150.5 150.5 153.8 153.4 155.2 156.3 155.6 157.0 157.8 38 General business supplies 5.67 150.6 154.3 153.3 154.1 155.2 155.5 158.2 158.5 160.5 161.0 160.9 162.2 163.5 39 Commercial energy products 1.31 128.3 130.3 126.8 128.8 130.3 129.0 135.0 131.1 132.3 135.8 132.7 134.6 133.2 Materials 40 Durable goods materials 20.50 119.7 120.7 120.5 121.5 121.8 122.2 121.6 124.0 125.2 125.5 126.4 128.7 129.7 130.5 41 Durable consumer parts 4.92 98.5 98.8 99.0 100.0 98.9 96.2 95.2 99.2 98.5 99.6 99.0 102.0 101.8 101.7 4? Equipment parts 5.94 153.9 154.2 154.0 155.6 155.8 157.1 156.0 158.3 159.3 159.5 161.1 162.2 163.7 164.6 43 Durable materials n.e.c 9.64 109.4 111.2 110.8 111.5 112.6 114.1 113.9 115.5 117.7 117.9 118.9 121.6 123.1 124.3 44 Basic metal materials 4.64 80.0 80.3 79.2 80.3 80.8 81.8 81.9 83.6 86.6 90.4 91.3 95.3 97.1 98.7 45 Nondurable goods materials 10.09 118.3 123.2 123.2 122.5 122.8 125.4 125.3 124.1 127.6 128.3 128.6 128.2 129.3 130.3 46 Textile, paper, and chemical materials 7.53 118.9 124.7 125.0 123.6 124.0 126.9 126.5 125.1 129.6 130.6 131.2 131.0 132.4 133.4 47 Textile materials 1.52 110.6 116.1 116.5 115.8 118.5 125.0 111.9 117.8 116.7 116.0 113.0 114.0 48 Pulp and paper materials 1.55 132.1 140.2 137.9 136.7 134.7 137.4 137.4 139.0 145.4 145.0 143.3 141.9 144.5 49 Chemical materials 4.46 117.1 122.3 123.4 121.8 122.1 125.0 125.0 124.9 128.1 130.4 132.2 133.4 134.4 50 Miscellaneous nondurable materials ... 2.57 116.5 118.5 118.0 119.0 119.2 121.1 122.0 120.9 122.0 121.4 120.9 119.8 51 Energy materials 11.69 99.9 98.8 98.9 97.6 97.0 97.5 99.3 99.4 99.0 100.9 100.2 101.5 102.1 101.7 52 Primary energy 7.57 105.5 105.1 104.1 102.6 101.5 102.3 103.6 104.0 102.5 104.6 104.6 106.3 107.2 53 Converted fuel materials 4.12 89.6 87.3 89.4 88.5 88.9 88.7 91.4 91.0 92.5 94.1 92.2 92.7 92.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1988 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value—Continued 1977 1986 1987 Groups SIC 1986 code avg. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. Nov." Dec/ Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 103.4 101.6 102.6 102.4 101.9 101.4 103.1 103.0 103.7 105.4 105.4 106.5 106.7 106.7 2 Mining 9.83 99.6 97.1 99.4 98.8 98.3 98.6 99.2 99.2 99.2 100.9 101.9 103.2 103.0 103.3 3 Utilities 5.96 109.6 109.0 108.0 108.5 107.9 106.0 109.6 109.4 111.2 112.9 111.2 112.1 112.9 112.4 4 Manufacturing 84.21 129.1 131.3 130.7 131.6 132.4 132.4 133.2 134.0 135.6 135.9 135.7 137.4 138.0 138.3 5 Nondurable 35.11 130.9 133.4 132.7 132.9 133.7 134.6 135.7 136.9 138.5 138.8 138.6 138.3 139.5 140.3 6 Durable 49.10 127.9 129.7 129.3 130.8 131.5 130.9 131.4 132.0 133.5 133.8 133.7 136.7 137.0 136.8 Mining 7 Metal 10 .50 76.2 74.1 73.6 71.2 65.7 71.7 70.7 71.4 79.3 86.5 85.6 8 Coal 11.12 1.60 124.2 125.4 136.4 131.7 122.3 121.9 127.2 128.8 127.9 130.5 133.3 140.3 141.5 142.0 9 Oil and gas extraction 13 7.07 94.7 89.8 91.2 90.9 92.4 93.1 92.1 91.8 91.8 93.0 93.3 93.4 92.9 92.9 10 Stone and earth minerals 14 .66 113.9 122.5 116.1 122.1 123.8 125.4 127.6 128.5 130.7 130.3 130.0 131.0 132.6 Nondurable manufactures 11 Foods 20 7.96 133.6 136.7 134.6 136.4 137.3 136.0 137.4 137.7 138.5 138.8 139.5 138.4 139.2 12 Tobacco products 21 .62 96.6 93.4 89.9 99.9 101.1 99.6 106.6 107.0 110.4 101.7 103.4 13 Textile mill products 22 2.29 113.2 113.4 109.2 110.8 112.6 116.6 115.7 117.2 118.3 119.8 118.2 117.3 119.3 14 Apparel products 23 2.79 103.6 104.9 106.1 106.5 105.4 105.3 106.4 107.7 109.7 108.4 107.6 108.0 15 Paper and products 26 3.15 136.4 141.1 139.7 139.9 139.9 140.5 141.3 142.6 148.8 148.9 147.4 145.7 149.2 16 Printing and publishing 27 4.54 163.4 166.4 166.3 164.4 167.6 169.2 171.4 174.1 174.0 174.7 174.9 175.2 175.7 176.4 17 Chemicals and products 28 8.05 133.0 135.7 136.4 135.7 135.3 137.3 138.1 139.3 140.8 142.3 142.4 141.8 143.4 18 Petroleum products 29 2.40 92.1 93.5 95.6 91.6 92.1 94.0 92.6 92.3 94.1 92.9 93.5 94.6 94.2 95.5 19 Rubber and plastic products 30 2.80 153.3 157.1 155.3 156.2 158.6 160.5 162.2 165.4 167.2 164.8 165.2 166.7 168.2 20 Leather and products 31 .53 61.3 60.2 58.9 59.8 59.4 60.2 61.4 60.8 59.2 61.3 60.7 60.2 58.6 Durable manufactures 21 Lumber and products 24 2.30 123.4 133.5 128.5 129.6 128.9 127.8 130.3 131.1 132.8 131.1 126.9 129.4 134.0 22 Furniture and fixtures 25 1.27 146.7 148.8 143.5 145.0 149.9 148.2 150.5 153.9 156.2 155.2 155.9 156.0 157.0 23 Clay, glass, stone products 32 2.72 120.2 119.4 121.9 118.8 119.8 120.6 117.2 117.9 118.8 116.5 118.6 118.9 118.6 24 Primary metals 33 5.33 75.8 73.4 72.8 75.1 77.0 76.1 77.0 78.8 81.4 85.1 84.5 90.5 91.3 90.6 25 Iron and steel 331.2 3.49 63.4 61.3 59.5 62.3 65.4 65.0 65.7 68.3 70.9 76.0 74.6 82.0 81.8 26 Fabricated metal products 34 6.46 107.4 109.6 108.4 108.3 110.5 109.9 108.5 111.1 111.1 110.1 111.1 113.1 113.5 114.0 27 Nonelectrical machinery 35 9.54 141.9 144.8 143.4 145.5 148.5 150.4 149.7 151.8 155.3 154.3 156.6 158.0 157.6 156.5 28 Electrical machinery 36 7.15 166.5 170.4 170.4 171.0 168.5 168.4 171.1 170.5 172.5 174.3 173.4 175.5 176.4 177.6 29 Transportation equipment 37 9.13 125.8 126.8 129.0 132.7 132.2 127.8 129.4 126.5 127.6 128.1 125.5 131.8 130.6 128.6 30 Motor vehicles and parts 371 5.25 110.9 109.7 112.0 117.7 116.5 109.8 112.0 107.4 109.4 109.1 105.6 116.0 114.0 110.4 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 146.1 150.1 151.9 153.0 153.4 152.3 153.1 152.4 152.3 153.9 152.5 153.3 153.2 153.3 32 Instruments 38 2.66 141.3 140.2 139.5 142.0 140.3 142.8 142.1 144.5 143.8 146.3 145.6 147.3 149.0 150.0 33 Miscellaneous manufactures 39 1.46 99.3 103.8 101.6 101.6 103.9 101.4 101.9 101.2 100.5 102.2 102.1 104.6 105.1 Utilities 34 Electric 4.17 122.2 122.6 121.6 122.3 123.6 122.3 128.8 128.8 131.0 132.0 127.5 126.8 127.1 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total. 517.5 1,702.2 1,700.7 1,701.6 1,718.7 1,725.2 1,710.0 1,723.0 1,720.4 1,732.5 1,741.7 1,735.9 1,775.3 1,772.7 1.773.2 36 Final 405.7 1,314.5 1,307.3 1,310.9 1,329.2 1,330.3 1,316.5 1,324.7 1,320.1 1,326.6 1,334.9 1,330.3 1,362.5 1,359.3 1.358.3 37 Consumer goods. 272.7 853.8 857.1 860.0 865.3 868.1 857.1 862.8 855.1 863.2 866.4 856.9 878.2 878.3 880.9 38 Equipment 133.0 458.2 450.2 450.9 463.9 462.2 459.4 461.9 465.0 463.5 468.5 473.4 484.3 481.0 477.3 39 Intermediate 111.9 387.6 393.4 390.7 389.5 394.9 393.6 398.4 400.3 405.9 406.8 405.6 412.8 413.5 415.0 A A major revision of the industrial production index and the capacity (July 1985), pp. 487-501. The revised indexes for January through June 1985 were utilization rates was released in July 1985. See "A Revision of the Index of shown in the September BULLETIN. Industrial Production" and accompanying tables that contain revised indexes NOTE. These data also appear in the Board's G. 12.3 (414) release. For address, (1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1987 IItteemm 11998844 11998855 11998866 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,682 1,733 1,750 1,676 1,719 1,598 1,493 1,517 1,487 1,502 1,502 1,463 1,469 2 1-family 922 957 1,071 1,204 1,150 1,058 1,009 1,039 993 1,023 992 977 983 3 2-or-more-family • 759 777 679 472 569 540 484 478 494 479 510 486 486 4 Started 1,749 1,742 1,805 1,838 1,730 1,643 1,606 1,586 1,598 1,585 1,685 L,537R 1,639 5 1-family 1,084 1,072 1,179 1,303 1,211 1,208 1,130 1,088 1,143 1,111 1,211 L,105R 1,110 6 2-or-more-family 665 669 626 535 519 435 476 498 455 474 474 432' 529 7 Under construction, end of period1 . 1,051 1,063 1,074 1,096 1,085 1,070 1,061 1,059 1,053 1,049 1,052R L,049R 1,052 8 1-family 556 539 583 621 618 623 621 620 623 625 631 63 lr 631 9 2-or-more-family 494 524 490 476 467 446 441 439 430 424 42 R 418 420 10 Completed 1,652 1,703 1,756 1,726 1,689 1,830 1,621 1,601 1,698 1,666 1,581R L,544R 1,529 11 1-family 1,025 1,072 1,120 1,107 1,141 1,148 1,158 1,101 1,120 1,067 1,112' l,106R 1,056 12 2-or-more-family 627 631 637 619 548 682 463 500 578 599 469" 438R 473 13 Mobile homes shipped 296 284 244 231 228 227 222 231 245 233 244 238 229 Merchant builder activity in 1-family units 14 Number sold 639 688 748 740 720 733 649 641 671 675 658 672 664 15 Number for sale, end of period1 358 350 361 358 358 359 355 359 359 361 361 359 360 Price (thousands of dollars)2 Median 16 Units sold 80.0 84.3 92.2 95.2 98.4 96.5 104.9 109.0 105.0 106.8 106.9 106.0 119.0 Average 17 Units sold 97.5 101.0 112.2 121.3 119.5 118.1 126.6 135.8 128.6 128.5 133.9 123.9 140.3 EXISTING UNITS (1-family) 18 Number sold 2,868 3,217 3,566 3,690 3,680 3,560 3,770 3,500 3,430 3,410 3,450 3,570 3,410 Price of units sold (thousands of dollars) 19 Median 72.3 75.4 80.3 85.0 85.6 85.0 85.2 85.2 86.2 85.1 85.1 84.8 83.7 20 Average 85.9 90.6 98.3 104.3 104.9 105.0 106.3 106.0 107.6 105.3 106.2 106.3 105.0 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 328,643 355,995 388,815 401,644 388,303 396,222 396,680 397,191 398,465 402,872 410,874 410,616 419,506 22 Private 270,978 291,665 316,589 326,453 312,203 320,483 321,414 324,256 323,847 329,831 332,950 333,915 341,999 23 Residential 153,849 158,475 187,147 203,115 190,812 199,523 195,871 200,864 198,005 200,241 205,062 204,781 207,120 24 Nonresidential, total 117,129 133,190 129,442 123,338 121,391 120,960 125,543 123,392 125,842 129,590 127,888 129,134 134,879 Buildings 7.5 Industrial 13,746 15,769 13,747 12,112 11,354 11,492 13,376 13,023 13,005 13,659 14,387 13,523 15,338 26 Commercial 39,357 51,315 48,592 53,071 52,285 50,924 53,224 51,831 52,537 54,055 52,800 54,039 57,531 27 Other 12,547 12,619 13,216 14,776 15,143 14,950 14,926 14,769 15,317 14,888 15,079 15,554 16,126 28 Public utilities and other 51,479 53,487 53,887 43,379 42,609 43,594 44,017 43,769 44,983 46,988 45,622 46,018 45,884 29 Public 57,662 64,326 72,225 75,191 76,100 75,739 75,266 72,935 74,618 73,041 77,924 76,701 77,507 30 Military 2,839 3,283 3,919 2,806 3,893 3,403 4,397 4,352 5,009 4,193 6,083 4,308 4,768 31 Highway 18,772 21,756 23,360 23,260 23,575 22,673 22,607 21,704 22,441 22,005 23,489 24,938 24,920 32 Conservation and development... 4,654 4,746 4,668 4,883 4,792 5,551 4,839 5,498 5,328 5,127 4,978 5,477 5,148 33 Other 31,397 34,541 40,278 44,242 43,840 44,112 43,423 41,381 41,840 41,716 43,374 41,978 42,671 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (1) 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 (2) sales and prices comparable with data in prior periods because of changes by the Bureau of the of 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 the originating agency. Permit Construction Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • March 1988 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier months earlier (at annual rate) Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm DDDeeeccc... 1987 1987 111999888777 11998866 11998877 (((111999666777 DDeecc.. DDeecc.. === 111000000)))111 Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 1 AU items 1.1 4.4 6.2 4.6 3.6 3.2 .5 .2 .4 .3 .1 345.7 2 3.8 3.5 2.5 6.5 1.4 4.0 .0 .5 .4 .1 .5 336.7 3 Energy items -19.7 8.2 26.1 7.9 5.0 -4.6 1.7 -.5 -.9 .8 -1.1 370.4 4 All items less food and energy 3.8 4.2 5.2 4.0 3.7 3.9 .4 .2 .5 .3 .1 346.8 5 Commodities 1.4 3.5 5.1 3.8 3.0 2.1 .1 .3 .5 .3 -.3 275.1 6 Services 5.2 4.6 5.3 3.8 4.2 5.0 .5 .1 .5 .3 .4 424.3 PRODUCER PRICES 7 Finished goods -2.3 2.2 4.3 3.9 2.7 -2.0 .2 .3 -.2 .0 -.3 296.8 8 Consumer foods 2.9 -.2 -6.7 12.7 -1.7 -4.1 -1.1' 1.0' -.1 .3 -1.3 282.2 9 Consumer energy -38.0 10.2 59.8 5.5 2.0 -13.8 2.6 -3.6' -1.0 -.8 -1.9 501.0 10 Other consumer goods 3.0 2.6 4.2 -.2 4.9 1.7 .4' .6 .0 .0 .5 269.0 11 Capital equipment 2.1 1.3 .4 1.2 4.4 -.6 .3 .7 -.4 .1 .2 314.2 12 Intermediate materials3 -4.5 5.6 7.8 5.7 4.6 4.1 .5 .0 .5 .4 .1 327.8 13 Excluding energy .1 5.3 3.3 4.6 5.0 8.2 .3' .5 .9 .5 .6 321.0 Crude materials 14 Foods -1.4 1.7 -10.3 34.8 -6.2 -1.8 .0' .3' 1.3 -3.0 1.3 237.5 15 Energy -27.5 10.5 50.0 11.4 6.1 -15.9 1.4 -2.7 -1.7 -1.1 -1.5 589.4 16 Other 1.7 22.4 15.9 31.9 37.1 24.5 2.3' 2.8' 4.1 .9 .6 302.4 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 11998855 11998866 11998877 Q4 Qi Q2 Q3 Q4 GROSS NATIONAL PRODUCT 1 4,010.3 4,235.0 4,486.2 4,288.1 4,377.7 4,445.1 4,524.0 4,598.0 By source 2 Personal consumption expenditures 2,629.4 2,799.8 2,966.0 2,858.6 2,893.8 2,943.7 3,011.3 33,,001155..11 3 368.7 402.4 413.9 419.8 396.1 409.0 436.8 413.8 4 Nondurable goods 913.1 939.4 980.4 946.3 969.9 982.1 986.4 983.4 5 1,347.5 1,458.0 1,571.6 1,492.4 1,527.7 1,552.6 1,588.1 1,618.0 6 Gross private domestic investment 641.6 671.0 716.4 660.2 699.9 702.6 707.4 755.5 7 Fixed investment 631.6 655.2 670.6 666.6 648.2 662.3 684.5 687.4 8 Nonresidential 442.6 436.9 442.1 439.7 422.8 434.6 456.6 454.3 9 Structures 152.5 137.4 134.1 132.9 128.7 129.7 137.1 140.7 10 Producers' durable equipment 290.1 299.5 308.0 306.7 294.1 304.9 319.5 313.6 11 Residential structures 189.0 218.3 228.5 226.9 225.4 227.7 227.9 233.1 1? Change in business inventories 10.0 15.7 45.7 -6.4 51.6 40.3 22.9 68.1 13 13.6 16.8 36.6 5.1 48.7 27.3 11.1 59.2 14 Net exports of goods and services -79.2 -105.5 -119.9 -116.9 -112.2 -118.4 -123.7 -125.5 15 369.9 376.2 426.7 383.3 397.3 416.5 439.2 453.9 16 Imports 449.2 481.7 546.7 500.2 509.5 534.8 562.9 579.4 17 Government purchases of goods and services 818.6 869.7 923.8 886.3 896.2 917.1 929.0 952.8 18 353.9 366.2 380.6 368.6 366.9 379.6 382.1 393.7 19 464.7 503.5 543.2 517.7 529.3 537.6 546.9 559.1 By major type of product 70 4,000.3 4,219.3 4,440.4 4,294.6 44,,332266..00 44,,440044..88 44,,550011..11 44,,552299..99 ?1 1,637.9 1,693.8 1,780.6 1,698.9 1,738.7 1,763.5 1,798.3 1,821.8 77 704.3 726.8 773.9 737.3 747.0 756.7 785.7 806.4 73 Nondurable 933.6 967.0 1,006.6 961.6 991.7 1,006.8 1,012.6 1,015.4 74 1,969.2 2,116.2 2,270.4 2,160.0 2,212.0 2,252.2 2,289.3 2,328.2 25 403.1 425.0 435.2 429.3 426.9 429.4 436.4 448.0 26 Change in business inventories 10.0 15.7 45.7 -6.4 51.6 40.3 22.9 68.1 71 Durable goods 7.3 4.8 26.5 -4.5 35.2 22.1 -1.9 50.7 28 Nondurable goods 2.7 10.9 19.2 -1.9 16.5 18.2 24.8 17.4 29 MEMO Total GNP in 1982 dollars 3,607.5 3,713.3 3,819.6 3,731.5 3,772.2 3,795.3 3,835.9 3,875.1 NATIONAL INCOME 30 3,229.9 3,422.0 3,635.9 3,471.0 3,548.3 3,593.3 3,659.0 n.a. 31 Compensation of employees 2,370.8 2,504.9 2,647.5 2,552.0 2,589.9 2,623.4 2,663.5 2,713.4 32 Wages and salaries 1,974.7 2,089.1 2,212.7 2,128.5 2,163.3 2,191.4 2,226.5 2,269.9 33 Government and government enterprises 372.3 394.8 421.5 403.8 412.2 418.1 424.5r 431.0 34 Other 1,602.6 1,694.3 1,791.3 1,724.7 1,751.1 1,773.3 l,801.9r 1,838.8 35 Supplement to wages and salaries 396.1 415.8 434.8 423.5 426.6 432.0 437.0 443.5 36 Employer contributions for social insurance 203.8 214.7 224.6 219.1 220.0 222.5 225.9 229.9 37 Other labor income 192.3 201.1 210.2 204.4 206.7 209.5 211.1 213.5 38 Proprietors'income1 257.3 289.8 327.8 297.8 320.9 323.1 322.7 344.6 39 Business and professional 227.6 252.6 279.1 261.2 269.7 275.8 282.1 288.7 40 29.7 37.2 48.8 36.6 51.3 47.3 40.6 55.8 41 Rental income of persons2 9.0 16.7 18.5 18.4 20.0 18.9 17.3 18.1 42 Corporate profits1 277.6 284.4 305.3 281.1 294.0 296.8 314.9 n.a. 43 Profits before tax3 224.8 231.9 274.6 247.9 257.0 268.7 284.9 n.a. 44 Inventory valuation adjustment -.7 6.5 -17.4 -8.9 -11.3 -20.0 -17.6 -20.7 45 Capital consumption adjustment 53.5 46.0 48.1 42.1 48.2 48.0 47.7 48.5 46 Net interest 315.3 326.1 336.7 321.7 323.6 331.1 340.6 351.5 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • March 1988 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1986 1987 Account 11998855 11998866 1987 Q4 Ql Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total personal income 3,327.0 3,534.3 3,745.8 3,593.6 3,662.0 3,708.6 3,761.0 3,851.5 2 Wage and salary disbursements 1,974.9 2,089.1 2,212.7 2,128.5 2,163.3 2,191.4 2,226.1 2,270.2 3 Commodity-producing industries 609.2 623.3 641.2 628.4 632.9 635.0 641.8 655.1 4 Manufacturing 460.9 470.5 484.0 474.5 477.2 479.0 485.1 494.8 5 Distributive industries 473.0 497.1 522.8 504.7 511.5 518.9 526.3 534.4 6 Service industries 520.4 573.9 627.3 591.6 606.7 619.3 633.9 649.3 7 Government and government enterprises 372.3 394.8 421.5 403.8 412.2 418.1 424.2 431.4 8 Other labor income 192.3 201.1 210.2 204.4 206.7 209.5 211.1 213.5 9 Proprietors' income1 257.3 289.8 327.8 297.8 320.9 323.1 322.7 344.6 10 Business and professional 227.6 252.6 279.1 261.2 269.7 275.8 282.1 288.7 11 Farm1 29.7 37.2 48.8 36.6 51.3 47.3 40.6 55.8 12 Rental income of persons 9.0 16.7 18.5 18.4 20.0 18.9 17.3 18.1 13 Dividends 76.3 81.2 87.5 82.9 84.5 86.3 88.7 90.5 14 Personal interest income 476.5 497.6 515.8 496.8 499.8 506.3 520.0 537.2 15 Transfer payments 489.7 518.3 543.0 526.6 533.7 541.5 545.8 551.1 16 Old-age survivors, disability, and health insurance benefits 253.4 269.2 282.9 273.5 278.0 282.3 284.4 286.8 17 LESS: Personal contributions for social insurance 148.9 159.6 169.9 161.8 166.7 168.4 170.7 173.7 18 EQUALS: Personal income 3,327.0 3,534.3 3,745.8 3,593.6 3,662.0 3,708.6 3,761.0 3,851.5 19 LESS: Personal tax and nontax payments 485.9 512.2 564.7 532.0 536.1 578.0 565.7 578.9 20 EQUALS: Disposable personal income 2,841.1 3,022.1 3,181.1 3,061.6 3,125.9 3,130.6 3,195.3 3,272.6 21 LESS: Personal outlays 2,714.1 2,891.5 3,060.9 2,952.6 2,987.5 3,037.4 3,106.5 3,112.2 22 EQUALS: Personal saving 127.1 130.6 120.2 109.0 138.4 93.2 88.8 160.4 MEMO Per capita (1982 dollars) 23 Gross national product 15,073.7 15,369.6 15,666.9 15,387.6 15,523.4 15,586.4 15.714.4 15,836.1 24 Personal consumption expenditures 9,830.2 10,142.8 10,234.6 10,228.8 10,188.9 10,215.6 10.326.5 10,202.7 25 Disposable personal income 10,622.0 10,947.0 10,976.0 10,956.0 11,008.0 10,865.0 10,958.0 11,074.0 26 Saving rate (percent) 4.5 4.3 3.8 3.6 4.4 3.0 2.8 4.9 GROSS SAVING 27 Gross saving 531.3 532.0 566.4 515.3 554.3 551.3 559.3 n.a. 28 Gross private saving 664.2 679.8 673.6 653.4 683.8 639.9 648.7' n.a. 29 Personal saving 127.1 130.6 120.2 109.0 138.4 93.2 88.8 160.4 30 Undistributed corporate profits 99.6 92.6 74.0 78.5 75.6 70.1 76.8 n.a. 31 Corporate inventory valuation adjustment -.7 6.5 -17.4 -8.9 -11.3 -20.0 -17.6 -20.7 Capital consumption allowances 32 Corporate 269.1 282.8 296.3 289.3 291.8 294.5 297.8 301.1 33 Noncorporate 168.5 173.8 183.1 176.6 178.0 182.1 185.3 187.1 34 Government surplus, or deficit (-), national income and product accounts -132.9 -147.8 -107.2 -138.1 -129.5 -88.6 -89.3' n.a. 35 Federal -196.0 -204.7 -152.6 -188.7 -170.5 -139.2 -135.8' n.a. 36 State and local 63.1 56.8 45.4 50.6 41.0 50.6 46.5 n.a. 37 Gross investment 525.7 527.1 559.6 503.7 552.1 548.1 548.4 589.6 38 Gross private domestic 641.6 671.0 716.4 660.2 699.9 702.6 707.4 755.5 39 Net foreign -115.9 -143.9 -156.8 -156.5 -147.7 -154.5 -159.0 -165.9 40 Statistical discrepancy -5.6 -4.9 -6.8 -11.6 -2.2 -3.1 -10.9 -10.9 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 Item credits or debits 11998844 11998855 11998866 Q3 Q4 QL Q2 Q3" 1 Balance on current account -107,013 -116,394 -141,352 -36,583 -37,977 -36,784 -41,190 -43,378 2 Not seasonally adjusted -40,230 -36,398 -33,435 -42,006 -48,525 3 Merchandise trade balance2 -112,522 -122,148 -144,339 -37,115 -38,595 -38,757 -39,558 -39,832 4 Merchandise exports 219,900 215,935 224,361 56,534 57,021 56,992 60,097 65,263 5 Merchandise imports 332,422 -338,083 -368,700 -93,649 -95,616 -95,749 -99,655 -105,095 6 Military transactions, net -1,942 -3,338 -3,662 -815 -495 -37 29 -443 7 Investment income, net3 18,490 25,398 20,844 5,339 4,492 5,500 1,577 -267 8 Other service transactions, net 1,138 -1,005 1,463 342 759 -387 -146 95 9 Remittances, pensions, and other transfers -3,637 -4,079 -3,885 -875 -1,151 -1,017 -865 -872 10 U.S. government grants (excluding military) -8,541 -11,222 -11,772 -3,459 -2,987 -2,086 -2,227 -2,059 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,476 -2,831 -1,920 -1,454 15 225 -177 232 12 Change in U.S. official reserve assets (increase, -) -3,130 -3,858 312 280 132 1,956 3,419 32 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -979 -897 -246 163 -31 76 -171 -210 15 Reserve position in International Monetary Fund -995 908 1,500 508 283 606 335 407 16 Foreign currencies -1,156 -3,869 -942 -391 -120 1,274 3,255 -165 17 Change in U.S. private assets abroad (increase, -)3 -13,685 -24,711 -94,374 -23,304 -32,351 13,352 -18,137 -29,467 18 Bank-reported claims -11,127 -1,323 -59,039 -18,878 -31,800 25,686 -15,685 -21,249 19 Nonbank-reported claims 5,019 1,361 -3,986 685 170 -1,163 2,603 20 U.S. purchase of foreign securities, net -4,756 -7,481 -3,302 620 3,113 -1,345 384 -930 21 U.S. direct investments abroad, net3 -2,821 -17,268 -28,047 -5,731 -3,834 -9,826 -5,439 -7,288 22 Change in foreign official assets in the United States (increase, +) 2,987 -1,140 34,698 15,551 1,003 13,953 10,070 359 23 U.S. Treasury securities 4,690 -838 34,515 12,167 4,572 12,145 11,084 1,200 24 Other U.S. government obligations 13 -301 -1,214 -276 -117 -62 256 714 25 Other U.S. government liabilities 586 823 1,723 999 -607 -1,381 -1,504 -506 26 Other U.S. liabilities reported by U.S. banks 555 645 554 2,963 -2,435 3,611 547 -425 27 Other foreign official assets -2,857 -1,469 -880 -302 -410 -360 -313 -624 28 Change in foreign private assets in the United States (increase, +)3 99,481 131,012 178,689 54,040 57,428 12,802 39,494 67,650 29 U.S. bank-reported liabilities 33,849 41,045 77,350 30,360 34,604 -13,614 14,823 48,872 30 U.S. nonbank-reported liabilities 4,704 -450 -2,791 -80 1,035 1,761 1,526 31 Foreign private purchases of U.S. Treasury securities, net 23,001 20,433 8,275 609 -3,074 -1,570 -2,211 -2,832 32 Foreign purchases of other U.S. securities, net 12,568 50,962 70,802 17,074 12,269 18,499 15,870 12,669 33 Foreign direct investments in the United States, net3 25,359 19,022 25,053 6,077 12,594 7,726 9,486 8,941 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 2266,,883377 17,920 23,947 -8,530 11,750 -5,504 6,521 4,572 36 Owing to seasonal adjustments -4,153 3,904 2,652 -2,009 -5,177 37 Statistical discrepancy in recorded data before seasonal adjustment 26,837 17,920 23,947 -4,377 7,846 -8,156 8,530 9,749 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,130 -3,858 312 280 132 1,956 3,419 32 39 Foreign official assets in the United States (increase, +) excluding line 25 2,401 -1,963 32,975 14,552 1,610 15,334 11,574 865 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 -3,023 -5,195 -2,901 -2,651 -1,681 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 153 46 101 19 53 8 26 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 (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing. Military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE . Data are from Bureau of Economic Analysis, Survey of Current Business 3. Includes reinvested earnings. (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • March 1988 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are not seasonally adjusted. 1987 IItteemm 11998844 11998855 11998866 May June July Aug. Sept. Oct. Nov. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 223,976 218,815 226,808 20,784 21,126 21,008 20,222 20,986 21,752 23,799 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses, c.i.f. value 346,364 352,463 382,964 34,822 36,838 37,483 35,905 35,062 39,383 37,016 3 Trade balance -122,389 -133,648 -156,156 -14,039 -15,711 -16,475 -15,683 -14,076 -17,631 -13,218 1. The Census basis data differ from merchandise trade data shown in table tions; military payments are excluded and shown separately as indicated above. 3.10, U.S. International Transactions Summary, for reasons of coverage and As of Jan. 1, 1987 census data are released 45 days after the end of the month. timing. On the export side, the largest adjustment is the exclusion of military sales Total exports and the trade balance reflect adjustments for undocumented exports (which are combined with other military transactions and reported separately in to Canada. the '' service account'' in table 3.10, line 6). On the import side, additions are made SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" for gold, ship purchases, imports of electricity from Canada, and other transac- (Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1987 TTyyppee 11998844 11998855 11998866 June July Aug. Sept. Oct. Nov. Dec.p 1 Total 34,934 43,186 48,511 45,140 44,318 45,944 45,070 46,200 46,779 45,798 2 Gold stock, including Exchange Stabilization Fund1 11,096 11,090 11,064 11,069 11,069 11,068 11,075 11,085 11,082 11,078 3 Special drawing rights2'3 5,641 7,293 8,395 8,856 8,813 9,174 9,078 9,373 9,937 10,283 4 Reserve position in International Monetary Fund2 11,541 11,947 11,730 11,313 10,964 11,116 10,918 11,157 11,369 11,349 5 Foreign currencies4 6,656 12,856 17,322 13,902 13,472 14,586 13,999 14,585 14,391 13,088 1. Gold held under earmark at Federal Reserve Banks for foreign and interna- in the IMF also are valued on this basis beginning July 1974. tional accounts is not included in the gold stock of the United States; see table 3. Includes allocations by the International Monetary Fund of SDRs as follows: 3.13. Gold stock is valued at $42.22 per fine troy ounce. $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, 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 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1987 AAsssseettss 11998844 11998855 11998866 p June July Aug. Sept. Oct. Nov. Dec. 1 Deposits 267 480 287 318 261 294 456 236 351 244 Assets held in custody 2 U.S. Treasury securities 118,000 121,004 155,835 176,657 171,269 179,484 179,097 182,072 187,767 195,126 3 Earmarked gold3 14,242 14,245 14,048 14,034 14,010 14,022 14,015 13,998 13,965 13,919 1. Excludes deposits and U.S. Treasury securities held for international and 3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce, regional organizations. Earmarked gold is gold held for foreign and international accounts and is not 2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. included in the gold stock of the United States. Treasury securities payable in dollars and in foreign currencies. 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 1987 May June July Aug. Sept. Oct. Nov." All foreign countries 1 Total, all currencies 453,656 458,012 456,628 487,599 475,188 470,391 473,540 489,895' 520,858' 524,979 2 Claims on United States 113,393 119,706 114,563 127,009 123,400 123,687 124,737'' 137,218' 137,454' 140,245 3 Parent bank 78,109 87,201 83,492 92,194 89,376 89,793 89,958 101,635' 98,683' 102,161 4 Other banks in United States 13,664 13,057 13,685 17,048 15,981 14,303 14,739' 15,949' 17,826 16,701 .5 Nonbanks 21,620 19,448 17,386 17,767 18,043 19,591 20,040' 19,634' 20,945 21,383 6 Claims on foreigners 320,162 315,676 312,955 328,280 319,546 314,078 314,727' 319,365' 347,574' 346,182 7 Other branches of parent bank 95,184 91,399 96,281 101,309 101,326 %,582 97,988 103,277 117,107' 116,945 8 Banks 100,397 102,960 105,237 114,101 107,747 110,124 108,068' 108,230' 118,051' 115,372 9 Public borrowers 23,343 23,478 23,706 23,295 22,590 21,412 21,537 21,463' 21,843' 22,131 10 Nonbank foreigners 101,238 97,839 87,731 89,575 87,883 85,960 87,134 86,395' 90,573' 91,734 11 Other assets 20,101 22,630 29,110 32,310 32,242 32,626 34,076' 33,312' 35,83c 38,552 12 Total payable in U.S. dollars 350,636 336,520 317,487 336,414 329,499 322,300 322,286 340,733' 354,122' 352,584 13 Claims on United States 111,426 116,638 110,620 121,551 118,411 118,563 118,964 131,684' 130,894' 133,464 14 Parent bank 77,229 85,971 82,082 90,159 87,540 87,779 87,844 99,776' %,492' 99,397 15 Other banks in United States 13,500 12,454 12,830 15,412 14,669 12,794 12,830r 13,942' 15,627 14,632 16 Nonbanks 20,697 18,213 15,708 15,980 16,202 17,990 18,290' 17,966' 18,775 19,435 17 Claims on foreigners 228,600 210,129 195,063 201,450 198,465 190,590 189,958 195,075' 209,494' 203,745 18 Other branches of parent bank 78,746 72,727 72,197 75,014 75,771 72,515 73,327 77,699 87,247' 85,992 19 Banks 76,940 71,868 66,421 69,525 67,287 65,673 64,106 64,506 68,888' 65,728 20 Public borrowers 17,626 17,260 16,708 16,812 16,271 15,062 15,115 14,942 14,889' 14,854 21 Nonbank foreigners 55,288 48,274 39,737 40,099 39,136 37,340 37,410 37,928' 38,470' 37,171 22 Other assets 10,610 9,753 11,804 13,413 12,623 13,147 13,364 13,974' 13,734' 15,375 United Kingdom 23 Total, all currencies 144,385 148,599 140,917 154,371 146,678 149,760 148,039 149,836 163,472' 167,726 24 Claims on United States 27,675 33,157 24,599 34,427 30,859 32,694 31,377 32,581 33,344' 34,959 25 Parent bank 21,862 26,970 19,085 28,935 25,944 27,288 25,627 27,128 27,15<y 29,106 26 Other banks in United States 1,429 1,106 1,612 1,507 1,194 1,537 1,585 1,349 1,870 1,694 27 Nonbanks 4,384 5,081 3,902 3,985 3,721 3,869 4,165 4,104 4,324 4,159 28 Claims on foreigners 111,828 110,217 109,508 112,997 107,407 108,732 108,293 108,562 120,639' 121,920 29 Other branches of parent bank 37,953 31,576 33,422 33,412 32,641 31,241 30,794 33,334 37,%2 39,585 30 Banks 37,443 39,250 39,468 41,241 37,745 41,219 40,082 38,390 42,929 41,649 31 Public borrowers 5,334 5,644 4,990 5,234 4,684 4,617 4,761 4,725 4,881 5,272 32 Nonbank foreigners 31,098 33,747 31,628 33,110 32,337 31,655 32,656 32,113 34,867' 35,414 33 Other assets 4,882 5,225 6,810 6,947 8,412 8,334 8,369 8,693 9,489' 10,847 34 Total payable in U.S. dollars 112,809 108,626 95,028 104,622 97,672 99,170 96,510 99,736 105,515' 107,215 35 Claims on United States 26,868 32,092 23,193 32,542 29,252 31,076 29,519 30,791 31,260' 32,888 36 Parent bank 21,495 26,568 18,526 28,228 25,286 26,661 24,853 26,423 26,29c 28,164 37 Other banks in United States 1,363 1,005 1,475 1,157 950 1,294 1,309 1,105 1,504 1,408 38 Nonbanks 4,010 4,519 3,192 3,157 3,016 3,121 3,357 3,263 3,466 3,316 39 Claims on foreigners 82,945 73,475 68,138 68,469 64,676 64,024 63,265 64,561 69,836 69,311 40 Other branches of parent bank 33,607 26,011 26,361 25,921 25,409 23,827 23,155 25,600 28,370 29,613 41 Banks 26,805 26,139 23,251 23,263 21,355 22,975 22,646 21,522 22,941 21,833 42 Public borrowers 4,030 3,999 3,677 3,785 3,470 3,400 3,473 3,377 3,426 3,472 43 Nonbank foreigners 18,503 17,326 14,849 15,500 14,442 13,822 13,991 14,062 15,099 14,393 44 Other assets 2,996 3,059 3,697 3,611 3,744 4,070 3,726 4,384 4,4^ 5,016 Bahamas and Caymans 45 Total, all currencies 146,811 142,055 142,592 141,832 142,170 140,512 139,986 151,909 156,752 154,901 46 Claims on United States 77,2% 74,864 78,048 73,445 72,541 72,772 72,558 81,679 83,187 82,629 47 Parent bank 49,449 50,553 54,575 46,463 45,891 46,256 45,697 53,668 53,093 52,563 48 Other banks in United States 11,544 11,204 11,156 14,552 13,684 11,824 12,111' 13,538' 14,721 13,980 49 Nonbanks 16,303 13,107 12,317 12,430 12,966 14,692 14.75C 14,473' 15,373 16,086 50 Claims on foreigners 65,598 63,882 60,005 63,089 65,280 63,027 62,336 65,619 68,710 67,1% 51 Other branches of parent bank 17,661 19,042 17,296 15,775 18,873 17,493 18,228 18,698 18,936 18,905 52 Banks 30,246 28,192 27,476 31,417 30,987 30,372 29,160 31,690 35,012' 33,477 53 Public borrowers 6,089 6,458 7,051 7,304 7,025 7,046 6,873 6,987 7,017 7,195 54 Nonbank foreigners 11,602 10,190 8,182 8,593 8,395 8,116 8,075 8,244 7,745' 7,619 55 Other assets 3,917 3,309 4,539 5,298 4,349 4,713 5,092 4,611 4,855 5,076 56 Total payable in U.S. dollars 141,562 136,794 136,813 133,482 135,323 131,636 130,985 142,385 145,642' 144,326 1. Beginning with June 1984 data, reported claims held by foreign branches from $50 million to $150 million equivalent in total assets, the threshold now have been reduced by an increase in the reporting threshold for "shell" branches applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • March 1988 3.14 Continued 1987 May June July Aug. Sept. Oct. Nov." All foreign countries 57 Total, all currencies 453,656 458,012 456,628 487,599 475,188 470,391 473,540 489,895' 520,858' 524,979 58 Negotiable CDs 37,725 34,607 31,629 34,360 31,776 32,993 33,648 35,724 36,796' 34,502 59 To United States 147,583 155,538 151,632 149,970 150,115 143,434 141,072' 152,903' 156,596' 156,006 60 Parent bank 78,739 83,914 82,561 74,324 78,152 71,543 73,520 79,704' 79,590' 83,307 61 Other banks in United States 18,409 16,894 15,646 17,134 16,814 15,005 15,289 17,229' 18,878 18,843 62 Nonbanks 50,435 54,730 53,425 58,512 55,149 56,886 52,263r 55,970 58,128 53,856 63 To foreigners 247,907 245,939 253,775 284,308 274,061 274,407 278,883' 280,651 306,472' 312,125 64 Other branches of parent bank 93,909 89,529 95,146 101,769 100,826 95,376 97,908 103,921 m.ssy 116,688 65 Banks 78,203 76,814 77,809 90,338 81,229 87,734 87,449 85,512 98,025' 97,591 66 Official institutions 20,281 19,520 17,835 23,058 22,264 21,528 21,016 20,116 20,235 21,777 67 Nonbank foreigners 55,514 60,076 62,985 69,143 69,742 69,769 72,510' 71,102 73,653' 76,069 68 Other liabilities 20,441 21,928 19,592 18,961 19,236 19,557 19,937 20,617' 20,994' 22,346 69 Total payable in U.S. dollars 367,145 353,712 336,406 347,312 340,985 334,218 333,673 352,002' 365,242' 360,805 70 Negotiable CDs 35,227 31,063 28,466 30,763 27,929 28,781 29,634 30,933' 32,117 30,075 71 To United States 143,571 150,162 143,650 141,151 141,667 134,731 132,066' 142,852' 145,324' 143,026 72 Parent bank 76,254 80,888 78,472 69,839 74,009 66,874 68,740 74,427' 74,109' 77,226 73 Other banks in United States 17,935 16,264 14,609 15,968 15,602 13,895 14,086 15,812' 17,323 17,169 74 Nonbanks 49,382 53,010 50,569 55,344 52,056 53,962 49,240' 52,613' 53,892 48,631 75 To foreigners 178,260 163,583 156,806 167,762 163,505 162,766 163,723' 169,342' 179,011' 178,801 76 Other branches of parent bank 77,770 71,078 71,181 74,764 74,202 70,911 72,620 78,036 84,208' 84,409 77 Banks 45,123 37,365 33,850 36,231 31,812 35,250 35,104 35,202 40,078 38,510 78 Official institutions 15,773 14,359 12,371 16,068 15,985 15,806 15,527 14,209 13,323 14,119 79 Nonbank foreigners 39,594 40,781 39,404 40,699 41,506 40,799 40,472' 41,895' 41,402' 41,763 80 Other liabilities 10,087 8,904 7,484 7,636 7,884 7,940 8,250 8,875' 8,79C 8,903 United Kingdom 81 Total, all currencies 144,385 148,599 140,917 154,371 146,678 149,760 148,039 149,836 163,472 167,726 82 Negotiable CDs 34,413 31,260 27,781 30,226 27,511 28,590 29,363 31,451 32,523 30,475 83 To United States 25,250 29,422 24,657 26,204 24,512 24,347 22,202' 22,462 22,868 24,961 84 Parent bank 14,651 19,330 14,469 15,145 14,745 14,010 13,234 13,357 12,251 14,018 85 Other banks in United States 3,125 2,974 2,649 2,273 2,109 2,021 1,875 2,073 2,407 2,103 86 Nonbanks 7,474 7,118 7,539 8,786 7,658 8,316 7,093' 7,032 8,210 8,840 87 To foreigners 77,424 78,525 79,498 89,760 86,041 87,942 87,745' 86,813 98,215 101,686 88 Other branches of parent bank 21,631 23,389 25,036 26,367 25,350 23,572 23,379 26,094 29,718 30,727 89 Banks 30,436 28,581 30,877 35,282 32,036 35,647 34,414 31,681 38,502 37,690 90 Official institutions 10,154 9,676 6,836 10,004 9,748 9,241 9,670 10,387 10,248 12,000 91 Nonbank foreigners 15,203 16,879 16,749 18,107 18,907 19,482 20,282' 18,651 19,747 21,269 92 Other liabilities 7,298 9,392 8,981 8,181 8,614 8,881 8,729 9,110 9,866' 10,604 93 Total payable in U.S. dollars 117,497 112,697 99,707 106,093 100,031 101,593 99,459 102,325 108,440' 108,481 94 Negotiable CDs 33,070 29,337 26,169 28,345 25,695 26,397 27,264 28,776 29,991 27,999 95 To United States 24,105 27,756 22,075 23,474 21,850 21,689 19,578' 19,528 18,8^ 19,800 % Parent bank 14,339 18,956 14,021 14,528 14,252 13,399 12,608 12,609 11,283' 12,792 97 Other banks in United States 2,980 2,826 2,325 2,027 1,899 1,776 1,694 1,883 2,105 1,789 98 Nonbanks 6,786 5,974 5,729 6,919 5,699 6,514 5,276' 5,036 5,431 5,219 99 To foreigners 56,923 51,980 48,138 51,116 49,089 50,294 49,479' 50,386 55,209 56,443 1(K) Other branches of parent bank 18,294 18,493 17,951 18,430 17,654 16,171 15,565 17,994 20,018 20,826 101 Banks 18,356 14,344 15,203 15,555 13,566 16,330 15,767 14,359 17,786 17,024 102 Official institutions 8,871 7,661 4,934 7,214 7,283 7,203 7,872 8,060 7,115 7,970 103 Nonbank foreigners 11,402 11,482 10,050 9,917 10,586 10,590 10,275' 9,973 10,290 10,623 104 Other liabilities 3,399 3,624 3,325 3,158 3,397 3,213 3,138 3,635 4,421' 4,239 Bahamas and Caymans 105 Total, all currencies 146,811 142,055 142,592 141,832 142,170 140,512 139,986 151,909 156,752 154,901 106 Negotiable CDs 615 610 847 1,092 1,067 1,119 975 886 890 673 107 To United States 102,955 103,813 105,248 101,695 103,007 99,240 97,244 107,245 111,925 107,967 108 Parent bank 47,162 44,811 48,648 39,826 43,288 39,842 40,889 45,890 48,793 49,568 109 Other banks in United States 13,938 12,778 11,715 13,411 13,382 11,989 12,276 13,579' 14,857 15,179 110 Nonbanks 41,855 46,224 44,885 48,458 46,337 47,409 44,079 47,776' 48,275 43,220 111 To foreigners 40,320 35,053 34,400 36,836 36,004 37,988 39,437 41,277 42,147 44,459 112 Other branches of parent bank 16,782 14,075 12,631 13,354 14,023 14,803 16,465 16,925 17,032 17,691 113 Banks 12,405 10,669 8,617 9,900 7,943 9,395 9,514 10,395 11,587 12,860 114 Official institutions 2,054 1,776 2,719 3,072 3,185 3,263 2,935 1,786 2,113 2,023 115 Nonbank foreigners 9,079 8,533 10,433 10,510 10,853 10,527 10,523 12,171 11,415 11,885 116 Other liabilities 2,921 2,579 2,097 2,209 2,092 2,165 2,330 2,501 1,790 1,802 117 Total payable in U.S. dollars 143,582 138,322 138,774 136,843 137,763 135,376 134,354 145,166' 149,273' 146,286 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 1987r IItteemm 11998855 11998866 May June July Aug. Sept. Oct. Nov." 1 Total1 178,380 211,782 236,539 238,797 232,370 237,728 239,534 252,077 253,737 By type 2 Liabilities reported by banks in the United States 26,734 27,868 31,941 32,079 31,513 29,638 31,869 37,913 33,962 3 U.S. Treasury bills and certificates 53,252 75,650 81,553 80,663 73,435 78,210 75,701 78,819 82,542 U.S. Treasury bonds and notes 4 Marketable 77,154 91,368 106,520 110,238 112,490 115,101 116,462 118,898 120,755 5 Nonmarketable4 3,550 1,300 1,300 700 500 300 300 300 300 6 U.S. securities other than U.S. Treasury securities 17,690 15,596 15,225 15,117 14,432 14,479 15,202 16,147 16,178 By area 7 Western Europe1 74,447 88,623 108,707 111,625 107,823 106,873 108,248 116,100 117,2% 8 Canada 1,315 2,004 3,482 3,502 3,559 4,189 4,529 5,152 4,884 9 Latin America and Caribbean 11,148 8,372 7,942 7,583 7,904 8,712 8,561 9,078 8,877 10 86,448 105,868 109,464 108,702 105,505 109,529 109,482 114,160 116,464 11 1,824 1,503 1,627 1,400 1,590 1,837 1,618 1,474 1,562 12 Other countries6 3,199 5,412 5,317 5,985 5,989 6,589 7,094 6,109 4,655 1. Includes the Bank for International Settlements. bonds and notes payable in foreign currencies. 2. Principally demand deposits, time deposits, bankers acceptances, commer- 5. Debt securities of U.S. government corporations and federally sponsored cial paper, negotiable time certificates of deposit, and borrowings under repur- agencies, and U.S. corporate stocks and bonds. 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 payable Treasury Department by banks (including Federal Reserve Banks) and securities in foreign currencies through 1974) and Treasury bills issued to official institutions dealers in the United States. of foreign countries. 4. Excludes notes issued to foreign official nonreserve agencies. Includes 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies1 Millions of dollars, end of period 1986 1987' IItteemm 11998833 11998844 11998855 Dec. Mar. June Sept. 1 Banks' own liabilities 5,219 8,586 15,368 29,702 37,873 38,470 45,265 2 Banks' own claims 7,231 11,984 16,294 26,180 34,153 34,006 41,047 3 Deposits 2,731 4,998 8,437 14,129 16,102 12,735 15,849 4 Other claims 4,501 6,986 7,857 12,052 18,050 21,271 25,198 5 Claims of banks' domestic customers 1,059 569 580 2,507 2,012 889 1,067 1. Data on claims exclude foreign currencies held by U.S. monetary author- States that represent claims on foreigners held by reporting banks for the accounts ities. of the domestic customers. 2. Assets owned by customers of the reporting bank located in the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • March 1988 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1987r Holder and type of liability 1984 1985 1986' May July Aug. Sept. Oct. 1 All foreigners 407,306 435,726 540,996 565,469 551,362 545,630 555,185 584,448 605,022 2 Banks' own liabilities 306,898 341,070 406,485 424,033 410,834 410,881 415,824 446,520 462,902 3 Demand deposits 19,571 21,107 23,789 22,846 22,837 20,219 22,117 21,150 22,906 4 Time deposits' 110,413 117,278 130,891 132,886 133,393 134,127 137,861 148,354 152,292 5 Other. 26,268 29,305 42,705 49,187 42,385 44,721 42,317 48,903 51,785 6 Own foreign offices 150,646 173,381 209,100 219,114 212,219 211,814 213,530 228,113 235,919 7 Banks' custody liabilities4 100,408 94,656 134,511 141,436 140,528 134,749 139,361 137,928 142,120 8 U.S. Treasury bills and certificates5 76,368 69,133 90,398 95,959 93,695 88,193 92,705 89,747 91,374 9 Other negotiable and readily transferable instruments 18,747 17,964 15,417 15,790 16,371 15,632 15,259 16,042 15,923 10 Other 5,293 7,558 28,6% 29,687 30,462 30,924 31,397 32,139 34,823 11 Nonmonetary international and regional organizations 4,454 5,821 5,807 5,907 4,005 5,946 5,332 7,845 3,797 12 Banks' own liabilities 2,014 2,621 3,958 4,243 2,515 2,367 2,498 4,674 1,883 13 Demand deposits 254 85 199 106 72 76 44 80 107 14 Time deposits 1,267 2,067 2,065 964 987 599 807 1,235 986 15 Other. 493 469 1,693 3,173 1,456 1,692 1,647 3,358 789 16 Banks' custody liabilities4 2,440 3,200 1,849 1,664 1,490 3,579 2,834 3,171 1,914 17 U.S. Treasury bills and certificates 916 1,736 259 440 266 2,339 1,635 1,793 285 18 Other negotiable and readily transferable instruments 1,524 1,464 1,590 1,224 1,224 1,240 1,193 1,378 1,624 19 Other 0 0 0 0 0 0 6 0 6 20 Official institutions8 86,065 79,985 103,569 113,494 112,742 104,948 107,848 107,570 116,732 21 Banks' own liabilities 19,039 20,835 25,427 29,079 28,690 28,343 26,342 28,169 34,370 22 Demand deposits 1,823 2,077 2,267 2,086 1,743 1,711 1,907 1,800 1,905 23 Time deposits' 9,374 10,949 10,497 11,355 13,266 13,567 13,489 14,246 16,474 24 Other. 7,842 7,809 12,663 15,637 13,680 13,065 10,946 12,123 15,991 25 Banks' custody liabilities4 67,026 59,150 78,142 84,415 84,052 76,605 81,505 79,401 82,362 26 U.S. Treasury bills and certificates5 59,976 53,252 75,650 81,553 80,663 73,435 78,210 75,701 78,819 27 Other negotiable and readily transferable instruments 6,966 5,824 2,347 2,715 3,141 2,950 3,151 3,540 3,318 28 Other 84 75 145 147 248 220 144 160 225 29 Banks9 248,893 275,589 351,745 366,359 357,145 358,378 362,883 388,625 405,492 30 Banks' own liabilities 225,368 252,723 310,166 325,171 314,621 315,0% 319,883 344,886 359,171 31 Unaffiliated foreign banks 74,722 79,341 101,066 106,057 102,402 103,283 106,353 116,772 123,252 32 Demand deposits 10,556 10,271 10,303 10,800 10,293 8,741 9,901 9,801 11,364 33 Time deposits' 47,095 49,510 64,232 67,459 67,045 66,865 69,588 77,743 80,095 34 Other 17,071 19,561 26,531 27,799 25,063 27,677 26,864 29,228 31,793 35 Own foreign offices3 150,646 173,381 209,100 219,114 212,219 211,814 213,530 228,113 235,919 36 Banks' custody liabilities4 23,525 22,866 41,579 41,187 42,524 43,281 43,000 43,739 46,321 37 U.S. Treasury bills and certificates 11,448 9,832 9,984 9,774 9,066 9,142 9,100 9,206 8,961 38 Other negotiable and readily transferable instruments 7,236 6,040 5,165 4,213 5,611 5,850 5,320 5,221 5,454 39 Other 4,841 6,994 26,431 27,201 27,848 28,289 28,581 29,312 31,906 40 Other foreigners 67,894 74,331 79,875 79,710 77,470 76,359 79,122 80,408 79,001 41 Banks' own liabilities 60,477 64,892 66,934 65,540 65,009 65,075 67,101 68,791 67,478 42 Demand deposits 6,938 8,673 11,019 9,854 10,729 9,691 10,264 9,468 9,530 43 Time deposits 52,678 54,752 54,097 53,109 52,095 53,0% 53,977 55,130 54,736 44 Other. 861 1,467 1,818 2,578 2,185 2,287 2,860 4,193 3,211 45 Banks' custody liabilities4 7,417 9,439 12,941 14,169 12,462 11,284 12,022 11,617 11,523 46 U.S. Treasury bills and certificates 4,029 4,314 4,506 4,192 3,701 3,276 3,761 3,046 3,309 47 Other negotiable and readily transferable instruments 3,021 4,636 6,315 7,638 6,395 5,592 5,594 5,904 5,527 48 Other 367 489 2,120 2,340 2,366 2,415 2,667 2,668 2,686 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,476 9,845 7,4% 8,694 7,356 6,313 6,458 6,501 6,666 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. Data exclude "holdings of foreign branches, agencies, or wholly owned subsidiaries of head office or parent dollars" of the International Monetary Fund. foreign bank. 8. Foreign central banks, foreign central governments, and the Bank for 4. Financial claims on residents of the United States, other than long-term International Settlements. 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 1987 AArreeaa aanndd ccoouunnttrryy 11998844 11998855 11998866 May' June' July Aug. Sept. Oct. Nov.p 1 407,306 435,726 540,9%' 565,469 551,362 545,630' 555,185' 584,448' 605,022 604,875 2 Foreign countries 402,852 429,905 535,189' 559,563 547,358 539,685 549,853' 576,603' 601,225 599,172 3 Europe 153,145 164,114 180,556' 212,200 210,606 204,865' 208,715' 214,145' 230,030 228,914 4 Austria 615 693 1,181 921 974 795 1,066 1,281 1,166 1,262 5 Belgium-Luxembourg 4,114 5,243 6,729 9,360 9,577 9,154 9,754 10,460 10,743 10,909 6 Denmark 438 513 482 459 425 486 576 590 704 628 7 Finland 418 4% 580 909 616 497 545 517 581 470 8 France 12,701 15,541 22,862 27,872 27,951 25,486' 27,003 27,899 28,255 27,519 9 Germany 3,358 4,835 5,762' 10,619 8,218 7,162' 7,715 6,823' 8,551 8,521 10 Greece 699 666 700 643 690 667 636 690 738 699 11 Italy 10,762 9,667 10,875 11,757 11,990 10,031' 7,667 8,41C 10,254 9,936 17, Netherlands 4,731 4,212 5,600 5,442 5,367 5,447' 5,461 6,106 6,693 6,457 13 Norway 1,548 948 735 571 502 562 593 663 1,179 1,074 14 Portugal 597 652 699 607 704 586 700 684 724 858 15 Spain 2,082 2,114 2,407 2,217 2,340 2,103 2,287 2,526 2,683 2,614 16 Sweden 1,676 1,422 884 1,4% 1,2% 1,235' 1,387' 1,639' 1,567 2,862 17 Switzerland 31,740 29,020 30,534' 26,840 27,796 24,607 28,26C 27,325' 27,315 30,244 18 Turkey 584 429 454 378 454 365 514 398 2,388 433 19 United Kingdom 68,671 76,728 85,334' 107,255 105,2% 107,641' 107,369' 109,269' 119,478 115,291 20 Yugoslavia 602 673 630 429 433 459 491 519 508 484 21 Other Western Europe1 7,192 9,635 3,326' 3,870 5,284 6,41c 6,016 7,808' 8,800 8,009 77 U.S.S.R 79 105 80 37 36 550 45 51 87 36 23 Other Eastern Europe2 537 523 702 517 656 622' 629' 485' 615 605 24 Canada 16,059 17,427 26,345 24,532 21,942 21,232 22,556 26,066' 25,733 28,547 7,5 Latin America and Caribbean 153,381 167,856 210,318' 205,494 198,010 200,119' 201,441' 214,364' 218,208 214,540 76 Argentina 4,394 6,032 4,757 4,785 4,794 5,122' 5,074 4,674 5,075 5,316 77 Bahamas 56,897 57,657 73,619 69,293 66,313 62,518 62.47C 71,502' 73,224 71,253 7,8 Bermuda 2,370 2,765 2,922 2,492 2,050 2,317 2,267' 2,234' 2,437 2,266 79 Brazil 5,275 5,373 4,325 3,959 3,672 3,783 3,955' 4,377' 3,942 4,090 30 British West Indies 36,773 42,674 72,263 71,914 68,830 73,678' 73,722' 78,116 79,692 78,123 31 Chile 2,001 2,049 2,054 2,033 1,971 2,035 2,119' 2,248 2,191 2,219 37 Colombia 2,514 3,104 4,285 4,251 4,304 4,424' 4,426' 4,195' 4,190 4,299 33 Cuba 10 11 7 6 8 8 7 7 12 9 34 Ecuador 1,092 1,239 1,236 1,090 1,118 1,088' 1,101 1,097 1,115 1,087 35 Guatemala 896 1,071 1,123 1,166 1,121 1,109' 1,087' 1,072 1,053 1,032 36 Jamaica 183 122 136 189 158 146 171 156 140 150 37 Mexico 12,303 14,060 13,745 13,961 13,855 14,159' 14,549 14.29C 14,338 14,508 38 Netherlands Antilles 4,220 4,875 4,970' 5,170 5,192 5,291 5,338 5,218 5,305 5,234 39 Panama 6,951 7,514 6,886 7,272 7,157 6,994' 7,130 7,188' 7,467 7,513 40 Peru 1,266 1,167 1,163 1,097 1,139 1,147' 1,203' 1,206' 1,205 1,205 41 Uruguay 1,394 1,552 1,537 1,508 1,504 1,536 1,485 1,492 1,493 1,526 47 Venezuela 10,545 11,922 10,171' 9,872 9,739 9,679' 10,146 9,824 9,882 9,032 43 Other 4,297 4,668 5,436 5,085 5,085' 5,189' 5,469' 5,447 5,678 44 7711,,118877 72,280 108,831' 108,941 108,162 104,394 106,999 111,401' 115,331 118,739 China 45 Mainland 1,153 1,607 1,476 1,842 1,737 1,744 2,011 1,775 1,699 1,435 46 Taiwan 4,990 7,786 18,902 17,333 16,353 16,436 15,377 15,197 18,302 21,564 47 Hong Kong 6,581 8,067 9,390 9,440 9,109 8,595 9,015 8,637 9,284 10,531 48 India 507 712 674 569 714 572 902 771 606 701 49 Indonesia 1,033 1,466 1,547 1,243 1,773 1,404 1,541 1,435 1,336 1,677 50 Israel 1,268 1,601 1,892 1,084 1,229 928 1,036 1,105 2,170 1,271 51 Japan 21,640 23,077 47,410 51,497 50,867 48,145' 49,872 52,945' 53,212 52,633 57 Korea 1,730 1,665 1,141 1,343 1,406 1,410 1,388 1,714 1,577 1,591 53 1,383 1,140 1,866 1,312 1,222 1,148 1,208 1,152 1,331 1,259 5 5 4 5 T M h i a d i d la le n - d E ast oil-exporting countries3i 1 1 6 , , 2 8 5 0 7 4 14 1 , , 5 35 2 8 3 1 1 2 , ,3 1 5 1 2 9 1 1 0 , , 1 86 80 5 1 1 1 , , 1 4 4 6 4 3 11 1 , , 6 0 7 % 6 12 1 , , 6 1 7 9 6 0 1 1 4 , , 1 0 1 4 8 3 13 1, , 2 6 7 6 5 0 13 1 , , 3 4 7 8 3 3 56 Other 12,841 9,276 11,058' 11,234 11,145 11,241 10,782 11,507' 10,878 11,222 57 Africa 3,3% 4,883 4,021 4,002 3,751 4,023' 4,194 4,011' 3,919 4,065 58 Egypt 647 1,363 706 1,052 1,009 1,113 1,158 1,118 1,104 1,169 59 Morocco 118 163 92 86 106 75 74 81 70 75 60 South Africa 328 388 270 198 188 229 227 199 280 246 61 Zaire 153 163 74 74 58 64 69 81 71 82 62 Oil-exporting countries 1,189 1,494 1,519 1,266 1,111 1,275 1,331 1,178 1,081 1,107 63 Other %1 1,312 1,360 1,325 1,281 1,267' 1,335 1,354' 1,313 1,386 64 Other countries 5,684 3,347 5,118 4,394 4,887 5,052 5,948 6,616 5,005 4,367 65 Australia 5,300 2,779 4,1% 3,589 4,113 4,333 5,019 5,641 4,011 3,666 66 All other 384 568 922 805 774 718 929 975' 994 701 67 Nonmonetary international and regional organiza- 68 Int t e io rn ns a tional < 4 3 , , 4 74 5 7 4 4 5, , 8 8 2 0 1 6 4 5 , , 6 8 2 0 0 7 ' ' 4 5, , 9 4 0 2 7 3 2 4 , , 5 0 9 0 7 5 4 5 , , 4 9 8 4 6 6 ' ' 3 5, , 3 8 3 1 2 9 6 7 , , 1 8 9 4 7 5 ' ' 2 3, , 7 3 9 1 7 0 5 3 , , 7 6 0 1 3 7 69 Latin American regional 587 894 1,033 994 1,047 1,075 1,070 1,126 1,155 1,478 70 Other regional6 120 121 154 489 362 384 443 522' 331 608 1. Includes the Bank for International Settlements and Eastern European 4. Comprises Algeria, Gabon, Libya, and Nigeria. countries that are not listed in line 23. 5. Excludes "holdings of dollars" of the International Monetary Fund. 2. Comprises Bulgaria, Czechoslovakia, the German Democratic Republic, 6. Asian, African, Middle Eastern, and European regional organizations, 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." United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • March 1988 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 Area and country 1984 1985 1986 May Juner July Aug. Sept. Oct. 1 Total 400,162 401,608 444,745' 438,650' 435,817 424,392' 427,057' 447,727' 461,402 2 Foreign countries 399,363 400,577 441,724' 437,705' 433,685 421,289' 423,993' 443,043' 458,571 3 Europe 99,014 106,413 107,823' 116,535' 114,469 108,062' 104,180' 105,930' 110,995 4 Austria 433 598 728 669 758 698 785 684 930 5 Belgium-Luxembourg 4,794 5,772 77,,449988 9,923' 9,828 10,239 9,550 9,591 10.131 6 Denmark 648 706 668888 531' 706 604 868' 747 795 7 Finland 898 823 987' 1,036 1,045 1,037 1,031 1,266 1,089 8 France 9,157 9,124 11,356 12,075 12,036 11,673 12,530 12,781 14,350 9 Germany 1,306 1,267 1,816' 1,508 1,612 2,009 1,333 1,485' 2,046 10 Greece 817 991 648 457 457 433 375 406 430 11 Italy 9,119 8,848 9,043' 8,335' 8,409 6,784 6,407 6,541 7,418 12 Netherlands 1,356 1,258 3,2%' 2,946 5,744 4,429 3,078 3,247 3,976 13 Norway 675 706 672' 776 774 830 803 722 812 14 Portugal 1,243 1,058 739 641 659 645 667 638 570 15 Spain 2,884 1,908 1,492 2,121' 1,872 1,830 1,945 2,233' 1,859 16 Sweden 2,230 2,219 1,964' 2,614 2,330 2,287 2,473 2,752 2,533 17 Switzerland 2,123 3,171 3,352' 3,593 2,618 2,464 2,664 2,612 2,825 18 Turkey 1,130 1,200 1,543 1,623 1,785 1,753 1,757 1,689 1,564 19 United Kingdom 56,185 62,566 58,335' 64,019' 59,937 56,544' 54,144' 54,71C 55,855 20 Yugoslavia 1,886 1,964 1,835 1,805' 1,757 1,764 1,742 1,741 1,750 21 Other Western Europe1 596 998 539' 493 567 647 548 619 549 22 U.S.S.R 142 130 345 357 582 420 521 549 473 23 Other Eastern Europe 1,389 1,107 948' 1,012 993 974 958 915 1,040 24 Canada 16,109 16,482 21,006' 19,345' 20,731 18,676' 18,494' 21,578' 21,402 25 Latin America and Caribbean 207,862 202,674 208,825' 204,503' 202,378 200,728' 202,384' 214,716' 217,091 26 Argentina 11,050 11,462 12,091' 12,335 12,212 12,151' 12,221 11,857 12,111 27 Bahamas 58,009 58,258 59,342 58,329' 56,670 53,842' 55,935' 65,309' 64.132 28 Bermuda 592 499 418 592 297 387 359 328 423 29 Brazil 26,315 25,283 25,716' 25,725' 25,522 25,999' 26,594' 26,056' 25.786 30 British West Indies 38,205 38,881 46,284' 44,380' 43,939 44,626' 43,290' 47,512 51,473 31 Chile 6,839 6,603 6,558' 6,337' 6,339 6,500 6,510 6,469 6,387 3 3 3 2 C C u o b lo a m bia 3,499 0 3,249 0 2,82 0 1 ' 2,650 9 2,649 0 2,743 0 2,784 0 2,729 0 2,731 0 34 Ecuador 2,420 2,390 2,439' 2,372 2,354 2,396 2,384 2,367 2,449 35 Guatemala3 158 194 140 115 109 107 105 124 131 36 Jamaica 252 224 198 184 182 268 202 198 191 37 Mexico 34,885 31,799 30,698' 30,139' 30,353 30,271' 30,638' 30,542 30,250 38 Netherlands Antilles 1,350 1,340 1,041' 1,047' 1,346 1,084' 994' 1,041 1,019 39 Panama 7,707 6,645 5,436 4,730 4,986 4,633 4,616 4,579 4,472 40 Peru 2,384 1,947 1,661 1,599 1,568 1,567 1,549 1,479 1,457 41 Uruguay 1,088 960 940 962 950 949 966 946 961 42 Venezuela 11,017 10,871 11,108' 11,071' 10,982 11,306 11,366 11,308 11,198 43 Other Latin America and Caribbean 2,091 2,067 1,936' 1,929' 1,920 1,902' 1,872' 1,872' 1,920 44 Asia 66,316 66,212 %,126' 89,607' 88,401 86,516' 91,429' 93,322' 100,427 China 45 Mainland 710 639 787 1,175 993 929 919 894 548 46 Taiwan 1,849 1,535 2,681' 3,595' 3,303 2,487 2,772 2,980 4,219 47 Hong Kong 7,293 6,797 8,307 7,727 7,731 7,495 6,556 6,933' 6,889 48 India 425 450 321 379 430 416 565 541' 527 49 Indonesia 724 698 723 657 677 639 624 622' 625 50 Israel 2,088 1,991 1,634' 1,459 1,450 1,413 1,450 1,591 1,331 51 Japan 29,066 31,249 59,674' 55,2W 55,415 54,596 61,072' 60,121 65.787 52 Korea 9,285 9,226 7,182 6,083' 5,325 4,954 4,589 4,606' 4,983 53 Philippines 2,555 2,224 2,217 2,066' 2,112 2,211 2,148 2,126 2,082 54 Thailand 1,125 845 578 541 538 565 545 453' 443 55 Middle East oil-exporting countries 5,044 4,298 4,122 3,697 3,808 3,914 4,315 4,848 5,063 56 Other Asia 6,152 6,260 7,901 7,008' 6,619 6,897 5,875 7,607 7,930 57 Africa 6,615 5,407 4,650 4,879' 4,704 4,705 4,739 4,704' 5,376 58 Egypt 728 721 567 586 600 572 586 541 538 59 Morocco 583 575 598 566 563 568 603 582 605 60 South Africa 2,795 1,942 1,550 1,598 1,501 1,479 1,497 1,504 1,546 61 Zaire 18 20 28 43 39 38 35 40 38 62 Oil-exporting countries 842 630 694 841' 818 866 862 888 1,531 63 Other 1,649 1,520 1,213 1,246 1,184 1,182 1,156 1,149' 1,118 64 Other countries 3,447 3,390 3,294' 2,836' 3,001 2,601 2,766 2,794' 3,280 65 Australia 2,769 2,413 1,949' 1,905' 1,980 1,693 1,686 1,834 2,034 66 All other 678 978 1,345 931 1,021 1,080 959' 1,246 67 Nonmonetary international and regional organizations 800 1,030 3,021 945' 2,132 3,103' 3,063' 4,684' 2,830 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 States1 Payable in U.S. Dollars Millions of dollars, end of period 1987r TTyyppee ooff ccllaaiimm 11998844 11998855 11998866rr May June July Aug. Sept. Oct. Nov." 11 TToottaall 444444333333333333,,,,,,000000777777888888 444444333333000000,,,,,,444444888888999999 444444777777888888,,,,,,666666555555000000 438,650 444444666666888888,,,,,,888888777777666666 424,392 427,057 444444888888111111,,,,,,666666555555222222 461,402 458,688 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444000000000000,,,,,,111111666666222222 444444000000111111,,,,,,666666000000888888 444444444444444444,,,,,,777777444444555555 438,650 444444333333555555,,,,,,888888111111777777 424,392 427,057 444444444444777777,,,,,,777777222222777777 461,402 458,688 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 666666222222,,,,,,222222333333777777 666666000000,,,,,,555555000000777777 666666444444,,,,,,000000999999555555 63,029 666666333333,,,,,,555555111111666666 65,857 65,808 666666777777,,,,,,000000777777777777 65,147 69,377 44 OOwwnn ffoorreeiiggnn ooffffiicceess 111111555555666666,,,,,,222222111111666666 111111777777444444,,,,,,222222666666111111 222222111111111111,,,,,,555555333333333333 203,464 222222000000111111,,,,,,555555000000111111 189,142 196,182 222222111111000000,,,,,,555555000000333333 218,742 219,781 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111222222444444,,,,,,999999333333222222 111111111111666666,,,,,,666666555555444444 111111222222222222,,,,,,999999444444666666 127,614 111111222222666666,,,,,,444444666666222222 124,364 121,939 111111222222777777,,,,,,222222888888555555 134,046 126,361 66 DDeeppoossiittss 444444999999,,,,,,222222222222666666 444444888888,,,,,,333333777777222222 555555777777,,,,,,444444888888444444 61,882 666666111111,,,,,,000000000000444444 59,612 56,788 555555999999,,,,,,666666999999666666 62,847 57,628 77 OOtthheerr 777777555555,,,,,,777777000000666666 666666888888,,,,,,222222888888222222 666666555555,,,,,,444444666666222222 65,732 666666555555,,,,,,444444555555888888 64,753 65,151 666666777777,,,,,,555555888888999999 71,199 68,734 88 AAllll ootthheerr ffoorreeiiggnneerrss 555555666666,,,,,,777777777777777777 555555000000,,,,,,111111888888555555 444444666666,,,,,,111111777777111111 44,543 444444444444,,,,,,333333333333777777 45,029 43,128 444444222222,,,,,,888888666666333333 43,466 43,169 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 333333222222,,,,,,999999111111666666 222222888888,,,,,,888888888888111111 333333333333,,,,,,999999000000555555 333333333333,,,,,,000000555555999999 333333333333,,,,,,999999222222555555 333333,,,,,,333333888888000000 333333,,,,,,333333333333555555 444444,,,,,,444444111111333333 333333,,,,,,444444777777444444 333333,,,,,,222222111111888888 11 Negotiable and readily transferable 222222333333,,,,,,888888000000555555 111111999999,,,,,,333333333333222222 222222444444,,,,,,000000444444444444 222222111111,,,,,,333333888888444444 222222222222,,,,,,000000777777111111 12 Outstanding collections and other 555555,,,,,,777777333333222222 666666,,,,,,222222111111444444 555555,,,,,,444444444444888888 888888,,,,,,222222000000222222 888888,,,,,,666666333333666666 13 MEMO: Customer liability on 333333777777,,,,,,111111000000333333 222222888888,,,,,,444444888888777777 222222555555,,,,,,777777000000666666 222222333333,,,,,,666666999999111111 222222111111,,,,,,777777888888222222 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 40,714 38,102 42,079 44,845 38,061 40,302 41,412 39,768 42,951 38,819 1. Data for banks' own claims are given on a monthly basis, but the data for 3. Assets owned by customers of the reporting bank located in the United claims of banks' own domestic customers are available on a quarterly basis only. States that represent claims on foreigners held by reporting banks for the account 2. U.S. banks: includes amounts due from own foreign branches and foreign of their domestic customers. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 4. Principally negotiable time certificates of deposit and bankers acceptances. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of 5. Includes demand and time deposits and negotiable and nonnegotiable foreign banks: principally amounts due from head office or parent foreign bank, certificates of deposit denominated in U.S. dollars issued by banks abroad. For and foreign branches, agencies, or wholly owned subsidiaries of head office or description of changes in data reported by nonbanks, see July 1979 BULLETIN, parent foreign bank. p. 550. 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 1987r MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998833 11998844 11998855 Dec/ Mar. June Sept.p 1 243,715 243,952 227,903 232,295 226,426 236,392 235,807 By borrower 7. Maturity of 1 year or less1 176,158 167,858 160,824 160,555 154,789 167,244 165,387 3 Foreign public borrowers 24,039 23,912 26,302 24,842 24,154 23,270 26,976 4 All other foreigners 152,120 143,947 134,522 135,714 130,635 143,973 138,411 5 Maturity over 1 year1 67,557 76,094 67,078 71,740 71,637 69,149 70,420 6 Foreign public borrowers 32,521 38,695 34,512 39,103 39,168 39,483 39,757 7 All other foreigners 35,036 37,399 32,567 32,637 32,468 29,665 30,663 By area Maturity of 1 year or less R Europe 56,117 58,498 56,585 61,784 58,042 68,891 61,985 9 Canada 6,211 6,028 6,401 5,895 5,625 5,622 5,733 10 Latin America and Caribbean 73,660 62,791 63,328 56,271 54,223 55,429 58,134 11 Asia 34,403 33,504 27,966 29,457 29,714 30,936 32,064 17 Africa 4,199 4,442 3,753 2,882 3,154 2,980 2,878 13 All other2 1,569 2,593 2,791 4,267 4,031 3,385 4,591 Maturity of over 1 year 14 Europe 13,576 99,,660055 7,634 6,737 6,742 6,417 6,805 15 Canada 1,857 1,882 1,805 1,925 1,873 1,631 1,577 16 Latin America and Caribbean 43,888 56,144 50,674 56,719 56,705 55,572 55,097 17 Asia 4,850 5,323 4,502 4,043 4,122 3,387 3,535 18 Africa 2,286 2,033 1,538 1,539 1,630 1,522 1,612 19 All other2 1,101 1,107 926 777 564 621 1,793 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • March 1988 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2 Billions of dollars, end of period 1985 1986 1987 Area or country 11998833 11998844 Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 434.0 405.7 394.9 391.9 394.2" 390.5r 390.3" 390.5" 399.8" 392.0" 2 G-10 countries and Switzerland 167.8 148.1 152.0 148.5 157.0" 160.3" 159.0" 158.0" 164.4" 161.7" 3 Belgium-Luxembourg 12.4 8.7 9.5 9.3 8.4 9.0 8.5 8.4 9.1 8.5 4 France 16.2 14.1 14.8 12.3 13.8 15.1 14.7 13.8 13.4 12.6 5 Germany 11.3 9.0 9.8 10.5 11.3 11.5 12.5 11.7 12.8 11.4" 6 Italy 11.4 10.1 8.4 9.8 8.5 9.3 8.1 9.0 8.6 7.5 7 Netherlands 3.5 3.9 3.4 3.7 3.5 3.4 3.9 4.6 4.4 7.3 8 Sweden 5.1 3.2 3.1 2.8 2.9 2.9 2.7 2.4 3.0 2.4 9 Switzerland 4.3 3.9 4.1 4.4 5.4 5.6 4.8 5.8" 5.8 5.7 10 United Kingdom 65.3 60.3 67.1 64.6 68.8 69.2 70.3 71.9 73.9" 72.6" 11 Canada 8.3 7.9 7.6 7.0 6.4 7.0" 6.2" 5.4 5.3" 6.9" 12 Japan 29.9 27.1 24.3 24.2 28. V 27.2 27.4 25.0 28.1" 26.7" 13 Other developed countries 36.0 33.6 32.0 30.4 31.6 30.7 29.5 26.2" 26.0 25.7 14 Austria 1.9 1.6 1.7 1.6 1.6 1.7 1.7 1.7 1.9 1.8 15 Denmark 3.4 2.2 2.1 2.4 2.5 2.4 2.3 1.7 1.7 1.5" 16 Finland 2.4 1.9 1.8 1.6 1.9 1.6 1.7 1.4 1.4 1.5 17 Greece 2.8 2.9 2.8 2.6 2.5 2.6 2.3 2.3 2.1 2.0 18 Norway 3.3 3.0 3.4 2.9 2.7 3.0 2.7 2.4 2.2 2.2 19 Portugal 1.5 1.4 1.4 1.3 1.1 1.1 1.0 .8 .9 .8 20 Spain 7.1 6.5 6.1 5.8 6.5 6.4 6.7 5.8 6.3 6.1" 21 Turkey 1.7 1.9 2.1 1.9 2.3 2.5 2.1 2.0 1.9 2.1 22 Other Western Europe 1.8 1.7 1.7 2.0 2.4 2.1 1.6 1.4 1.4 1.6" 23 South Africa 4.7 4.5 3.3 3.2 3.2 3.1 3.1 3.1 3.1 3.1 24 Australia 5.4 6.0 5.6 5.0 4.9 4.2 4.1 3.5 3.2 3.1 25 OPEC countries3 28.4 24.9 22.7 21.6 20.7 20.6 20.0 19.6 20.5" 19.2 26 Ecuador 2.2 2.2 2.2 2.1 2.2 2.1 2.2 2.2 2.1 2.1 27 Venezuela 9.9 9.3 9.0 8.9 8.7 8.8 8.7 8.6 8.8" 8.7 28 Indonesia 3.4 3.3 3.1 3.0 3.3 3.0 2.8 2.5 2.4 2.2 29 Middle East countries 9.8 7.9 6.2 5.5 4.7 5.0 4.6 4.5 5.5 4.5 30 African countries 3.0 2.3 2.3 2.0 1.8 1.7 1.7 1.7 1.7 1.7 31 Non-OPEC developing countries 110.8 111.8 107.8 105.1 103.9 102.0 100.0 99.7 99.9" 100.2" Latin America 32 Argentina 9.5 8.7 8.9 8.9 8.9 9.2 9.3 9.5 9.5" 9.5 33 Brazil 23.1 26.3 25.5 25.6 25.8 25.5 25.4 25.3 25.7" 24.6" 34 Chile 6.4 7.0 6.6 7.0 7.1r 7.1 7.2 7.1 7.3 7.2 35 Colombia 3.2 2.9 2.6 2.7 2.3 2.2 2.0 2.1 2.0 2.0 36 Mexico 25.8 25.7 24.4 24.2 24.1 24.0 24.0 24.0" 23.7" 25.4" 37 Peru 2.4 2.2 1.9 1.8 1.7 1.6 1.5 1.5 1.4 1.4 38 Other Latin America 4.2 3.9 3.5 3.4 3.3 3.3 3.3 3.1 3.0 3.0" Asia China 39 Mainland .3 .7 1.1 .5 .6 .6 .6 .4 .9 .6 40 Taiwan 5.2 5.1 5.1 4.5 4.3 3.7 4.3 4.9 5.5 6.6 41 India .9 .9 1.1 1.2 1.2 1.3 1.3 1.2 1.6" 1.7 42 Israel 1.9 1.8 1.5 1.6 1.3 1.6 1.4 1.5 1.4 1.3 43 Korea (South) 11.2 10.6 10.4 9.4 9.5 8.7 7.3 6.7 6.2" 5.6 44 Malaysia 2.8 2.7 2.7 2.4 2.2 2.0 2.1 2.1 1.9 1.7 45 Philippines 6.1 6.0 6.0 5.7 5.6 5.7 5.4 5.4 5.4 5.4 46 Thailand 2.2 1.8 1.7 1.4 1.3 1.1 1.0 .9 .9 .8 47 Other Asia 1.0 1.1 .9 1.0 .9 .8 .7 .7 .6 .8 Africa 48 Egypt 1.5 1.2 1.0 1.0 .9 .9 .7 .7 .6 .6 4 5 9 0 M Za o ir r e o cco .8| .8 J .9 J .9 . . 9 1 . . 9 1 . . 9 1 . . 9 1 . . 9 1 . . 9 1 51 Other Africa4 23 2.1 2^0 L9 1.9 1.7 1.6 1.6 1.4 1.3 52 Eastern Europe 5.3 4.4 4.6 4.2 4.0 4.0 3.4 3.2 3.1 3.4 53 U.S.S.R .2 .1 .2 .1 .3 .3 .1 .1 .1 .3 54 Yugoslavia 2.4 2.3 2.4 2.2 2.0 2.0 1.9 1.7 1.6 1.7 55 Other 2.8 2.0 1.9 1.8 1.7 1.7 1.4 1.4 1.3 1.4 56 Offshore banking centers 68.9 65.6 58.8 65.4 60.1 56.1" 61.3" 64.0 66.1" 63.6" 57 Bahamas 21.7 21.5 16.6 21.4 21.4 17.1 19.9 22.3 24.1 20.0" 58 Bermuda .9 .9 .8 .7 .7 .4" .4 .7 .8 .6 59 Cayman Islands and other British West Indies 12.2 11.8 12.3 13.4 11.4 13.0 13.6" 14.5 13.7" 15.1" 60 Netherlands Antilles 4.2 3.4 2.3 2.3 2.3 2.4r 1.9 1.8 1.7 1.3 6 6 1 2 L Pa e n b a a m no a n 5.8| 6.7 1 6.1 Q 6.0 J 4.4 j 4. . 2 1 5.1 4.1 5.4 J 5.3 J 63 Hong Kong 13.8 11.4 11.4 11.5 11.5 9.5 10.5 1L2 1L4" 12.6" 64 Singapore 10.3 9.8 9.4 9.9 8.5 9.3 9.7 9.4 8.8 8.5" 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 16.8 17.3 17.3 16.9 16.8r 16.8 17.2 19.8 19.8" 18.1 1. The banking offices covered by these data are the U.S. offices and foreign from $50 million to $150 million equivalent in total assets, the threshold now branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. applicable to all reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. This group comprises the Organization of Petroleum Exporting Countries (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, adjusted to exclude the claims on foreign branches held by a U.S. office or another Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and foreign branch of the same banking institution. The data in this table combine Oman (not formally members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 4. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 5. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 6. Foreign branch claims only. 2. Beginning with June 1984 data, reported claims held by foreign branches 7. Includes New Zealand, Liberia, and international and regional organizahave been reduced by an increase in the reporting threshold for "shell" branches tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1986 1987 Type, and area or country 11998833 11998844 11998855 Sept. Dec.' Mar.' June Sept.'' 1 Total 25,346 29,357 27,825' 26,429' 25,717 27,432 28,751 28,167 2 Payable in dollars 22,233 26,389 24,2% 22,432' 21,885 23,264 24,286 23,846 3 Payable in foreign currencies 3,113 2,968 3,529' 3,997' 3,833 4,169 4,466 4,321 By type 4 Financial liabilities 10,572 14,509 13,60c 13,501' 12,239 13,114 13,946 12,667 5 Payable in dollars 8,700 12,553 11,257 11,071' 9,774 10,398 11,068 9,955 6 Payable in foreign currencies 1,872 1,955 2,343' 2.43C 2,464 2,716 2,878 2,712 7 Commercial liabilities 14,774 14,849 14,225 12,929' 13,479 14,318 14,805 15,500 8 Trade payables 7,765 7,005 6,685 5,728' 6,447 6,985 7,139 7,389 9 Advance receipts and other liabilities .. 7,009 7,843 7,540 7,201' 7,032 7,333 7,666 8,111 10 Payable in dollars 13,533 13,836 13,039 11,361' 12,110 12,865 13,218 13,891 11 Payable in foreign currencies 1,241 1,013 1,186 1,567' 1,368 1,453 1,587 1,609 By area or country Financial liabilities 12 Europe 5,742 6,728 7,70C 8,907' 8,023 8,383 9,645 9,081 13 Belgium-Luxembourg 302 471 349' 448' 270 232 257 230 14 France 843 995 857 501 644 742 807 574 15 Germany 502 489 376' 319 270 368 305 291 16 Netherlands 621 590 861' 741' 704 693 669 677 17 Switzerland 486 569 61C 567' 646 711 703 684 18 United Kingdom 2,839 3,297 4,305' 5.88C 5,199 5,378 6,642 6,349 19 Canada 764 863 839 362 399 431 441 407 20 Latin America and Caribbean 2,5% 5,086 3,184 2,283 1,964 2,369 1,747 %1 21 Bahamas 751 1,926 1,123 842 614 669 398 280 22 Bermuda 13 13 4 4 4 0 0 0 23 Brazil 32 35 29 28 32 26 22 22 24 British West Indies 1,041 2,103 1,843 1,291 1,163 1,545 1,223 581 25 Mexico 213 367 15 18 22 30 29 17 26 Venezuela 124 137 3 5 3 3 5 3 27 Asia 1,424 1,777 1,815 1,881 1,784 1,861 2,046 2,140 28 Japan 991 1,209 1,198 1,446 1,377 1,459 1,666 1,653 29 Middle East oil-exporting countries . 170 155 82 3 8 7 7 7 30 Africa 19 14 12 4 1 3 1 2 0 0 0 2 1 1 0 0 31 Oil-exporting countries 27 41 50 63 67 67 66 76 32 All other4 Commercial liabilities 3,245 4,001 4,074 4,344' 4,494 4,521 4,987 4,973 33 Europe 62 48 62 75 101 85 111 56 34 Belgium-Luxembourg 437 438 453 370 351 379 422 437 35 France 427 622 607 633' 722 591 594 679 36 Germany 268 245 364 581 460 372 339 350 37 Netherlands 241 257 379 361 387 484 557 556 38 Switzerland 732 1,095 976 1,142' 1,346 1,309 1,380 1,475 39 United Kingdom 40 Canada 1,841 1,975 1,449 1,313' 1,393 1,352 1,253 1,263 41 Latin America and Caribbean 1,473 1,871 1,088 848' 890 1,089 1,037 1,050 42 Bahamas 1 7 12 37 32 28 13 22 43 Bermuda 67 114 77 172 132 297 245 223 44 Brazil 44 124 58 44' 61 82 88 40 45 British West Indies 6 32 44 45 48 89 64 44 46 Mexico 585 586 430 197 213 185 160 231 47 Venezuela 432 636 212 207 217 224 203 176 48 Asia 6,741 5,285 6,046 4,856' 5,098 5,818 5,921 6,516 49 Japan 1,247 1,256 1,799 2,137' 2,051 2,468 2,480 2,422 50 Middle East oil-exporting countries • 4,178 2,372 2,829 1,507' 1,686 1,948 1,870 2,109 51 Africa 553 588 587 585 622 520 524 571 52 Oil-exporting countries3 167 233 238 176 197 170 166 150 53 All other4 921 1,128 982 982 981 1,019 1,083 1,128 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • March 1988 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1986R 1987 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998833 11998844 11998855 Sept. Dec. Mar/ June Sept/ 1 Total 34,911 29,901 28,876r 34,157 33,451 34,034 31,515 31,211 2 Payable in dollars 31,815 27,304 26,574R 31,446 30,923 31,238 28,405 28,546 3 Payable in foreign currencies 3,0% 2,597 2,302 2,711 2,528 2,7% 3,110 2,666 By type 4 Financial claims 23,780 19,254 18,891R 24,833 23,357 24,080 21,580 20,906 5 Deposits 18,4% 14,621 15,526 18,953 17,899 17,994 15,437 15,920 6 Payable in dollars 17,993 14,202 14,911 18,389 17,343 17,168 14,253 15,086 / Payable in foreign currencies 503 420 615 565 555 826 1,183 834 8 Other financial claims 5,284 4,633 3,364R 5,880 5,458 6,086 6,143 4,985 9 Payable in dollars 3,328 3,190 2,330R 4,506 4,110 4,740 4,868 3,860 10 Payable in foreign currencies 1,956 1,442 1,035 1,374 1,349 1,345 1,275 1,125 11 Commercial claims 11,131 10,646 9,986 9,324 10,095 99,,995544 9,935 10,305 12 Trade receivables 9,721 9,177 8,696 8,079 8,902 88,,889988 8,892 9,364 13 Advance payments and other claims 1,410 1,470 1,290 1,245 1,192 1,056 1,043 942 14 Payable in dollars 10,494 9,912 9,333 8,551 9,471 9,330 9,283 9,599 15 Payable in foreign currencies 637 735 652 773 624 624 652 706 By area or country Financial claims 16 Europe 6,488 5,762 6,929^ 10,545 8,759 9,337 9,859 9,336 17 Belgium-Luxembourg 37 15 10 67 41 15 6 23 18 France 150 126 184 418 138 172 154 169 19 Germany 163 224 223 129 111 163 92 83 20 Netherlands 71 66 161R 73 86 69 75 94 21 Switzerland 38 66 74 138 182 74 95 44 22 United Kingdom 5,817 4,864 6,007 9,478 7,957 8,491 9,237 8,709 23 Canada 5,989 3,988 3,260 3,970 3,964 3,779 3,329 2,883 24 Latin America and Caribbean 10,234 8,216 7,846 9,438 9,207 9,547 7,539 7,491 25 Bahamas 4,771 3,306 2,698 2,806 22,,662244 3,945 2,572 2,507 26 Bermuda 102 6 6 19 66 3 6 2 27 Brazil 53 100 78 105 73 71 103 102 28 British West Indies 4,206 4,043 4,571 6,060 6,078 5,128 4,349 3,687 29 Mexico 293 215 180 173 174 164 167 173 30 Venezuela 134 125 48 40 24 23 22 18 31 Asia 764 %1 731 715 1,320 1,193 779 1,105 3 3 3 2 J M ap id a d n l e East oil-exporting countries2 297 4 35 1 3 3 475 4 365 2 99 1 9 1 93 1 1 1 43 1 9 0 72 1 1 0 3 3 4 5 Af O ri i c l a -e xporting countries3 1 5 4 5 7 21 8 0 5 1 2 0 9 3 8 1 4 8 2 8 8 5 8 1 4 9 58 9 7 1 1 4 36 All other4 159 117 21 81 22 140 16 20 Commercial claims 37 Europe 3,670 3,801 3,533 3,389 3,718 3,703 3,850 4,114 38 Belgium-Luxembourg 135 165 175 125 133 145 137 168 39 France 459 440 426 415 410 417 435 411 40 Germany 349 374 346 401 447 451 531 550 41 Netherlands 334 335 284 157 173 165 182 199 42 Switzerland 317 271 284 233 217 196 187 208 43 United Kingdom 809 1,063 898 874 998 1,070 1,071 1,224 44 Canada 829 1,021 1,023 960 928 927 927 903 45 Latin America and Caribbean 2,695 2,052 1,753 1,686 1,981 1,944 1,878 1,844 46 Bahamas 8 8 13 29 28 11 14 12 47 Bermuda 190 115 93 132 170 157 153 125 48 Brazil 493 214 206 202 235 217 202 226 49 British West Indies 7 7 6 23 51 25 17 20 50 Mexico 884 583 510 317 411 445 346 365 51 Venezuela 272 206 157 192 234 171 201 188 52 Asia 3,063 3,073 2,982 2,588 2,751 2,707 2,640 2,772 53 Japan 1,114 1,191 1,016 797 881 926 950 1,018 54 Middle East oil-exporting countries'1 737 668 638 682 565 529 455 436 55 Africa 588 470 437 470 495 432 379 407 56 Oil-exporting countries3 139 134 130 168 135 141 123 123 57 All other4 286 229 257 231 222 240 261 267 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 1987 Transactions, and area or country 1985 1986 J N a o n v .- . May June July Aug. Sept. Oct. Nov.'' U.S. corporate securities STOCKS 1 Foreign purchases 81,995 148,1W 235,255 19,632 18,687' 23,645 24,774 22,473' 30,207 13,616 2 Foreign sales 77,054 129,395' 215,993 15,956 17,054 21,883 24,554 19,433 27,768 20,302 3 Net purchases, or sales (-) 4,941 18,719 19,262 3,676 L,634R 1,763 220 3,040' 2,438 -6,687 4 Foreign countries 4,857 18,927 19,249 3,712R 1,679^ 1,749 117 2,951' 2,424 -6,639 5 Europe 2,057 9,559 4,190 1,474 669 717 81 1,312' 138 -5,948 6 France -438 459 1,298 123 107 66 -69 -15 58 -541 7 Germany 730 341 75 118 -155 -96 28 -12 380 -183 8 Netherlands -123 936 859 120 232 153 135 79 -40 -169 9 Switzerland -75 1,560 -420 351 -206 -80 -325 435 294 -1,574 10 United Kingdom 1,665 4,826 1,473 670 671 635 125 770' -624 -3,407 11 Canada 356 816' 996 48 -238 255 -21 -46 238 181 12 Latin America and Caribbean 1,718 3,031' 1,364 363 296' 387 188 157 -512 -561 13 Middle East' 238 976 -912 -90 -26 -913 -255 135 569 -83 14 Other Asia 296 3,876 13,056 1,686 1,009 1,290 171 1,242 2,014 -28 15 Africa 24 297 129 45 -30 -14 16 20 7 11 16 Other countries 168 373 426 185 -1 27 -63 132 -30 -211 17 Nonmonetary international and regional organizations 84 -208 12 -36 -45 14 102 90 15 -48 BONDS2 18 Foreign purchases 86,587 123,169r 98,961 8,972' 10,432' 9,414' 7,027 8,662' 9,155 5,691 19 Foreign sales 42,455 72,520' 72,616 6,858' 8,311' 6,533' 5,638 4,786' 7,257 5,333 20 Net purchases, or sales (—) 44,132 50,648' 26,346 2,113' 2,121' 2,881' 1,389 3,876' 1,898 358 21 Foreign countries 44,227 49,801'' 26,034 2,243R 2,030' 2,872' 1,548 3,836' 1,888 101 22 Europe 40,047 39,313' 21,606 1,655' 2,266' 2,328' 1,616 3,149' 937 430 23 France 210 389 207 7 43 64' 26 -37 55 -34 24 Germany 2,001 -251 -26 -29 80 116 -22 -56 -98 -26 25 Netherlands 222 387 268 38 37 -65 44 116 36 -16 26 Switzerland 3,987 4,529 1,866 181' 105 245' 306 166 136 -26 27 United Kingdom 32,762 33,900' 19,150 1,518' 1,857' 1,897' 1,317 2,828' 1,027 379 28 Canada 190 548 1,182 23 49 87 -8 47 305 68 29 Latin America and Caribbean 498 1,476' 2,181 254 -4 305 44 682' 524 -15 30 Middle East' -2,648 -2,961 -532 59 -128 -166 -14 -87 42 -92 31 Other Asia 6,091 11,270 1,643 252 -169 301' -93 52 65 -247 32 Africa 11 16 13 7 8 1 -17 -6 24 -10 33 Other countries 38 139 -61 -6 8 15 20 -1 -9 -33 34 Nonmonetary international and regional organizations -95 847 312 -130 9R 9 -159 40 10 257 Foreign securities 35 Stocks, net purchases, or sales (-) -3,941 -2,36C 421 637' -257 -15' -373 448 1,993 712 36 Foreign purchases 20,861 49,587' 89,209 8,017' 8,781' 8,585' 8,674 8,657 12,768 7,498 37 Foreign sales 24,803 51,947' 88,789 7,380' 9,038' 8,599' 9,047 8,208 10,775 6,787 38 Bonds, net purchases, or sales (-) -3,999 -3,555' -6,176 -1,137' 2,285' -588' -241' -674' -2,604 -2,169 39 Foreign purchases 81,216 166,992' 185,835 20,050' 25,797' 16,303' 12,292 12,923 18,046 17,417 40 Foreign sales 85,214 170,548' 192,011 21,186' 23,512' 16,891' 12,532' 13,597 20,649 19,587 41 Net purchases, or sales (-), of stocks and bonds -7,940 —5,915R -5,756 -500' 2,028' -602' -614' -226' -611 -1,458 42 Foreign countries -9,003 -7,000' -6,214 -518R 1,985' -329' -1,207' -546' 156 -1,357 43 Europe -9,887 -18,533' -11,490 - l^ -IT -572' -896' -510' -945 -1,621 44 Canada -1,686 -876' -4,187 -414' -489 -596 -484 -263 -71 -665 45 Latin America and Caribbean 1,797 3,476' 824 204 106 -62 83 -20 -152 328 46 Asia 659 10,858 9,361 1,692 2,513 1,078' 224 82 1,333 418 47 Africa 75 52 80 20 6 5 5 14 16 3 48 Other countries 38 -1,977 -800 -32' -124 -182 -140 150 -25 179 49 Nonmonetary international and regional organizations 1,063 11,,008844 445588 18 44 -274 594 320 -767 -101 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, ties sold abroad by U.S. corporations organized to finance direct investments Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). abroad. 2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • March 1988 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1987 1987 Country or area 1985 1986 J N a o n v .- . May June July Aug. Sept. Oct. Nov." Transactions, net purchases or sales -) during period1 1 Estimated total2 29,208 19,388' 23,433 -284' 12,281' 807' 1,110 523 -1,090 6,380 2 Foreign countries2 28,768 20,491' 26,910 3,729' 8,646 3,610' 2,787 704 -5,355 7,676 3 Europe2 4,303 16,326' 22,501 1,694' 3,640 4,453' -1,007 -1,167 -781 6,340 4 Belgium-Luxembourg 476 -245' 719 2' 58 -2' 366 -25 128 -2 5 Germany 1,917 7,670 12,173 1,417 1,534 1,516 780 130 31 1,820 6 Netherlands 269 1,283 -835 352 111 204 -254 -296 -707 314 7 Sweden 976 132 182 -166 -183 76 -153 -156 4 182 8 Switzerland2 773 329 2,447 413 585 512 -688 -99 -609 -297 9 United Kingdom -1,810 4,546' 2,928 -524 617 1,105' -431 -985 -469 3,163 10 Other Western Europe 1,701 2,613 4,906 198 913 1,042 -631 259 841 1,157 11 Eastern Europe 0 0 -19 1 5 0 4 5 0 4 12 Canada -188 881 3,815 37 413 654 378 203 -389 679 13 Latin America and Caribbean 4,315 926 -2,005 -381 780 -673 -675 -29 -117 472 14 Venezuela 248 -96' 149 11 -17 -4 30 55 -63 35 15 Other Latin America and Caribbean 2,336 1,130' -1,263 -302 -514 15 -49 -155 -227 367 16 Netherlands Antilles 1,731 -108 -891 -90 1,311 -684 -656 72 173 69 17 Asia 19,919 1,345 2,248 2,136 3,531 -676' 4,318 1,762 -5,333 1,476 18 Japan 17,909 -22 -1,143 -541 4,199 -597 1,839 799 -5,272 1,757 19 112 -54 -105 11 -18 20 -24 3 2 -29 20 Mother 308 1,067 455 233 300 -168 -204 -68 1,263 -1,260 21 Nonmonetary international and regional organizations 442 -1,104' -3,475 -4,013 3,635' -2,802 -1,677 -180 4,265 -1,296 22 International -436 -1,430 -2,557 -3,147 3,517' -2,875 -1,722 111 4,326 -1,492 23 Latin American regional 18 157 3 0 3 0 0 -10 0 0 Memo 24 Foreign countries 28,768 20,491' 26,910 3,729' 8,646 3,610' 2,787 704 -5,355 7,676 25 Official institutions 8,135 14,214 29,388 4,447 3,719 2,251 2,612 1,360 2,437 1,857 26 Other foreign2 20,631 6,283' -2,482 -718' 4,927 1,358' 175 -657 -7,792 5,819 Oil-exporting countries 27 Middle East3 -1,547 -1,529 -3,479 636 -857 107' 329 -509 -695 -891 28 Africa4 7 5 17 0 1 0 0 0 -1 -1 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities with an original maturity of more than 1 year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria. notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes publicly issued to private foreign residents denominated in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Dec. 31, 1987 Rate on Dec. 31, 1987 Rate on Dec. 31, 1987 Country Country Country Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Austria.. 3.0 Dec. 1987 France 7.75 Dec. 1987 Norway 8.0 June 1983 Belgium . 7.0 Dec. 1987 Germany, Fed. Rep. of. 2.5 Dec. 1987 Switzerland 2.5 Dec. 1987 Brazil ... 49.0 Mar. 1981 Italy 12.0 Aug. 1987 United Kingdom2 Canada.. 8.68 Dec. 1987 Japan 2.5 Feb. 1987 Venezuela 8.0 Oct. 1985 Denmark 7.0 Oct. 1983 Netherlands 3.75 Dec. 1987 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 comdiscounts Treasury bills for 7 to 10 days. mercial banks or brokers. For countries with more than one rate applicable to 2. Minimum lending rate suspended as of Aug. 20, 1981. such 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 year, averages of daily figures 1987 CCoouunnttrryy,, oorr ttyyppee 11998844 11998855 11998866 June July Aug. Sept. Oct. Nov. Dec. 1 Eurodollars 10.75 8.27 6.70 7.11 6.87 6.91 7.51 8.29 7.41 7.86 2 United Kingdom 9.91 12.16 10.87 8.85 9.17 9.95 10.12 9.92 8.87 8.71 3 Canada 11.29 9.64 9.18 8.40 8.61 9.11 9.32 9.12 8.70 8.95 4 Germany 5.% 5.40 4.58 3.67 3.83 3.93 3.98 4.70 3.92 3.65 5 Switzerland 4.35 4.92 4.19 3.77 3.60 3.55 3.51 4.03 3.65 3.51 6 Netherlands 6.08 6.29 5.56 5.15 5.21 5.27 5.31 5.63 4.99 4.65 7 France 11.66 9.91 7.68 8.18 7.83 7.88 7.85 8.15 8.66 8.48 8 17.08 14.86 12.60 10.67 10.92 11.96 12.36 11.85 11.36 11.25 9 Belgium 11.41 9.60 8.04 6.78 6.54 6.55 6.56 6.84 6.93 6.57 10 Japan 6.32 6.47 4.96 3.71 3.74 3.71 3.77 3.89 3.90 3.90 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • March 1988 3.28 FOREIGN EXCHANGE RATES Currency units per dollar 1987 CCoouunnttrryy//ccuurrrreennccyy 11998844 11998855 11998866 July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar 87.937 70.026 67.093 70.79 70.72 72.68 71.12 68.60 71.06 2 Austria/schilling 20.005 20.676 15.260 12.996 13.041 12.765 12.674 11.843 11.500 3 Belgium/franc 57.749 59.336 44.662 38.329 38.528 37.657 37.494 35.190 34.186 4 Canada/dollar 1.2953 1.3658 1.3896 1.3262 1.3256 1.3154 1.3097 1.3167 1.3075 5 China, P.R./yuan 2.3308 2.9434 3.4615 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 6 Denmark/krone 10.354 10.598 8.0954 7.0179 7.1279 6.9893 6.9262 6.4962 6.3043 7 Finland/markka 6.0007 6.1971 5.0721 4.4882 4.5017 4.3954 4.3570 4.1392 4.0462 8 France/franc 8.7355 8.9799 6.9256 6.1530 6.1934 6.0555 6.0160 5.7099 5.5375 9 Germany/deutsche mark 2.8454 2.9419 2.1704 1.8482 1.8553 1.8134 1.8006 1.6821 1.6335 10 Greece/drachma 112.73 138.40 139.93 139.313 140.63 138.40 138.61 132.42 129.46 11 Hong Kong/dollar 7.8188 7.7911 7.8037 7.8090 7.8091 7.8035 7.8077 7.7968 7.7726 12 India/rupee 11.348 12.332 12.597 13.01 13.085 12.993 12.995 12.972 12.934 13 Ireland/punt1 108.64 106.62 134.14 144.99 144.18 147.54 148.72 158.08 162.63 14 Italy/lira 1756.10 1908.90 1491.16 1337.96 1344.18 1310.86 1302.58 1238.89 1203.74 15 Japan/yen 237.45 238.47 168.35 150.29 147.33 143.29 143.32 135.40 128.24 16 Malay sia/ringgit 2.3448 2.4806 2.5830 2.5414 2.5361 2.5189 2.5308 2.4989 2.4944 17 Netherlands/guilder 3.2083 3.3184 2.4484 2.0814 2.0903 2.0413 2.0267 1.8931 1.8382 18 New Zealand/dollar1 57.837 49.752 52.456 59.644 58.923 63.352 64.031 61.915 64.664 19 Norway/krone 8.1596 8.5933 7.3984 6.7632 6.7911 6.6505 6.6311 6.4233 6.3820 20 Portugal/escudo 147.70 172.07 149.80 144.51 145.57 142.94 142.82 136.84 133.77 21 Singapore/dollar 2.1325 2.2008 2.1782 2.1183 2.1082 2.0924 2.0891 2.0444 2.0127 22 South Africa/rand1 69.534 45.57 43.952 48.52 48.16 48.86 48.79 50.67 51.22 23 South Korea/won 807.91 861.89 884.61 811.81 811.87 810.07 808.47 802.30 798.34 24 Spain/peseta 160.78 169.98 140.04 126.97 125.57 121.34 118.60 113.26 110.80 25 Sri Lanka/rupee 25.428 27.187 27.933 29.405 29.643 29.902 30.347 30.519 30.644 26 Sweden/krona 8.2706 8.6031 7.1272 6.4466 6.4898 6.3844 6.3560 6.0744 5.9473 27 Switzerland/franc 2.3500 2.4551 1.7979 1.5365 1.5364 1.5029 1.4940 1.3825 1.3304 28 Taiwan/dollar 39.633 39.889 37.837 31.114 30.290 30.151 30.036 29.813 29.004 29 Thailand/baht 23.582 27.193 26.314 26.041 25.926 25.765 25.783 25.495 25.249 30 United Kingdom/pound1 133.66 129.74 146.77 160.90 159.96 164.46 166.20 177.54 182.88 MEMO 31 United States/dollar2 138.19 143.01 112.22 99.36 99.43 97.23 96.65 91.49 88.70 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. 700). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when IPCs Individuals, partnerships, and corporations about half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 SMSAs Standard metropolitan statistical areas when the smallest unit given is millions) .... Cell not applicable General Information Minus signs are used to indicate (1) a decrease, (2) a negative obligations of the Treasury. "State and local government" figure, or (3) an outflow. also includes municipalities, special districts, and other politi- "U.S. government securities" may include guaranteed cal subdivisions. issues of U.S. government agencies (the flow of funds figures In some of the tables, details do not add to totals because of also include not fully guaranteed issues) as well as direct rounding. STATISTICAL RELEASES List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases December 1987 All SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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 commercial banks, March 31, 1987 October 1987 A70 Assets and liabilities of commercial banks, June 30, 1987 February 1988 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 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1987 November 1987 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1987 February 1988 A76 Terms of lending at commercial banks, November 1986 February 1987 A70 Terms of lending at commercial banks, February 1981 May 1987 A70 Terms of lending at commercial banks, May 1987 September 1987 A70 Terms of lending at commercial banks, August 1987 January 1988 A70 Pro forma balance sheet and income statements for priced service operations, June 30, 1987 November 1987 A74 Pro forma balance sheet and income statements for priced service operations, September 30, 1987 February 1988 A80 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Board of Governors ALAN GREENSPAN, Chairman MARTHA R. SEGER MANUEL H. JOHNSON, Vice Chairman WAYNE D. ANGELL OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director LYNN SMITH FOX, Special Assistant to the Board CHARLES J. SIEGMAN, Senior Associate Director BOB STAHLY MOORE, Special Assistant to the Board DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser DONALD B. ADAMS, Assistant Director LEGAL DIVISION PETER HOOPER III, Assistant Director KAREN H. JOHNSON, Assistant Director MICHAEL BRADFIELD, General Counsel RALPH W. SMITH, JR., Assistant Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel RICHARD M. ASHTON, Associate General Counsel OLIVER IRELAND, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS RICKI R. TIGERT, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel MICHAEL J. PRELL, Director EDWARD C. ETTIN, Deputy Director JARED J. ENZLER, Associate Director OFFICE OF THE SECRETARY THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director WILLIAM W. WILES, Secretary ELEANOR J. STOCKWELL, Associate Director BARBARA R. LOWREY, Associate Secretary MARTHA BETHEA, Deputy Associate Director JAMES MCAFEE, Associate Secretary PETER A. TINSLEY, Deputy Associate Director MARK N. GREENE, Assistant Director MYRON L. KWAST, Assistant Director DIVISION OF CONSUMER SUSAN J. LEPPER, Assistant Director AND COMMUNITY AFFAIRS MARTHA S. SCANLON, Assistant Director DAVID J. STOCKTON, Assistant Director JOYCE K. ZICKLER, Assistant Director GRIFFITH L. GARWOOD, Director LEVON H. GARABEDIAN, Assistant Director GLENN E. LONEY, Assistant Director (Administration) ELLEN MALAND, Assistant Director DOLORES S. SMITH, Assistant Director DIVISION OF MONETARY AFFAIRS DIVISION OF BANKING DONALD L. KOHN, Director SUPERVISION AND REGULATION DAVID E. LINDSEY, Deputy Director BRIAN F. MADIGAN, Assistant Director WILLIAM TAYLOR, Staff Director RICHARD D. PORTER, Assistant Director DON E. KLINE, Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board FREDERICK M. STRUBLE, Associate Director WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director OFFICE OF THE INSPECTOR GENERAL RICHARD SPILLENKOTHEN, Deputy Associate Director HERBERT A. BIERN, Assistant Director BRENT L. BOWEN, Inspector General 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 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 HUMAN RESOURCES MANAGEMENT CLYDE H. FARNSWORTH, JR., Director DAVID L. SHANNON, Director ELLIOTT C. MCENTEE, Associate Director JOHN R. WEIS, Associate Director DAVID L. ROBINSON, Associate Director ANTHONY V. DIGIOIA, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director JOSEPH H. HAYES, JR., Assistant Director CHARLES W. BENNETT, Assistant Director FRED HOROWITZ, Assistant Director JACK DENNIS, JR., Assistant Director CHARLES W. WOOD, Assistant Director EARL G. HAMILTON, Assistant Director JOHN H. PARRISH, Assistant Director LOUISE L. ROSEMAN, Assistant Director OFFICE OF THE CONTROLLER FLORENCE M. YOUNG, Adviser GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) 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

A72 Federal Reserve Bulletin • March 1988 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL H. ROBERT HELLER EDWARD W. KELLEY, JR. ROBERT P. BLACK W. LEE HOSKINS ROBERT T. PARRY ROBERT P. FORRESTAL MANUEL H. JOHNSON MARTHA R. SEGER ALTERNATE MEMBERS ROGER GUFFEY THOMAS C. MELZER THOMAS M. TIMLEN SILAS KEEHN FRANK E. MORRIS STAFF DONALD L. KOHN, Secretary and Staff Adviser DAVID E. LINDSEY, Associate Economist NORM AND R.V. BERNARD, Assistant Secretary MICHAEL J. PRELL, Associate Economist ROSEMARY R. LONEY, Deputy Assistant Secretary ARTHUR J. ROLNICK, Associate Economist MICHAEL BRADFIELD, General Counsel HARVEY ROSENBLUM, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel KARL A. SCHELD, Associate Economist EDWIN M. TRUMAN, Economist (International) CHARLES J. SIEGMAN, Associate Economist PETER FOUSEK, Associate Economist THOMAS D. SIMPSON, Associate Economist RICHARD W. LANG, 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 J. TERRENCE MURRAY, First District CHARLES T. FISHER, III, Seventh District WILLARD C. BUTCHER, Second District DONALD N. BRANDIN, Eighth District SAMUEL A. MCCULLOUGH, Third District DEWALT H. ANKENY, JR., Ninth District THOMAS H. O'BRIEN, Fourth District F. PHILLIPS GILTNER, Tenth District FREDERICK DEANE, JR., Fifth District GERALD W. FRONTERHOUSE, Eleventh District BENNETT A. BROWN, Sixth District PAUL HAZEN, Twelfth District HERBERT V. PROCHNOW, SECRETARY WILLIAM J. KORSVIK, ASSOCIATE SECRETARY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 and Advisory Councils CONSUMER ADVISORY COUNCIL STEVEN W. HAMM, Columbia, South Carolina, Chairman EDWARD J. WILLIAMS, Chicago, Illinois, Vice Chairman NAOMI G. ALBANESE, Greensboro, North Carolina ROBERT A. HESS, Washington, D.C. STEPHEN BROBECK, Washington, D.C. ROBERT J. HOBBS, Boston, Massachusetts EDWIN B. BROOKS, JR., Richmond, Virginia RAMON E. JOHNSON, Salt Lake City, Utah JUDITH N. BROWN, Edina, Minnesota ROBERT W. JOHNSON, West Lafayette, Indiana MICHAEL S. CASSIDY, New York, New York A. J. (JACK) KING, Kalispell, Montana BETTY TOM CHU, Monterey, California JOHN M. KOLESAR, Cleveland, Ohio JERRY D. CRAFT, Atlanta, Georgia ALAN B. LERNER, Dallas, Texas DONALD C. DAY, Boston, Massachusetts RICHARD L. D. MORSE, Manhattan, Kansas RICHARD B. DOBY, Denver, Colorado WILLIAM E. ODOM, Dearborn, Michigan RICHARD H. FINK, Washington, D.C. SANDRA R. PARKER, Richmond, Virginia NEIL J. FOGARTY, Jersey City, New Jersey SANDRA PHILLIPS, Pittsburgh, Pennsylvania STEPHEN GARDNER, Dallas, Texas JANE SHULL, Philadelphia, Pennsylvania KENNETH A. HALL, Picayune, Mississippi RALPH E. SPURGIN, Columbus, Ohio ELENA G. HANGGI, Little Rock, Arkansas LAWRENCE WINTHROP, Portland, Oregon THRIFT INSTITUTIONS ADVISORY COUNCIL JAMIE J. JACKSON, Houston, Texas, President GERALD M. CZARNECKI, Honolulu, Hawaii, Vice President ROBERT S. DUNCAN, Hattiesburg, Mississippi JOSEPH W. MOSMILLER, Baltimore, Maryland BETTY GREGG, Phoenix, Arizona JANET M. PAVLISKA, Arlington, Massachusetts THOMAS A. KINST, Hoffman Estates, Illinois LOUIS H. PEPPER, Seattle, Washington RAY MARTIN, LOS Angeles, California WILLIAM G. SCHUETT, Milwaukee, Wisconsin JOE C. MORRIS, Emporia, Kansas DONALD B. SHACKELFORD, Columbus, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. Mail Stop 138, Board of Governors of the Federal Reserve $13.50 each. System, Washington, D.C. 20551. When a charge is indicat- FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated, payment should accompany request and be made to the ed at least monthly. (Requests must be prepaid.) Board of Governors of the Federal Reserve System. Payment Consumer and Community Affairs Handbook. $75.00 per from foreign residents should be drawn on a U.S. bank. year. Stamps and coupons are not accepted. Monetary Policy and Reserve Requirements Handbook. $75.00 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- Securities Credit Transactions Handbook. $75.00 per year. TIONS. 1984. 120 pp. Federal Reserve Regulatory Service. 3 vols. (Contains all ANNUAL REPORT. three Handbooks plus substantial additional material.) ANNUAL REPORT: BUDGET REVIEW, 1986-87. $200.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or Rates for subscribers outside the United States are as $2.00 each in the United States, its possessions, Canada, follows and include additional air mail costs: and Mexico; 10 or more of same issue to one address, Federal Reserve Regulatory Service, $250.00 per year. $18.00 per year or $1.75 each. Elsewhere, $24.00 per Each Handbook, $90.00 per year. year or $2.50 each. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint MULTICOUNTRY MODEL, May 1984.590 pp. $14.50 each. of Part I only) 1976. 682 pp. $5.00. WELCOME TO THE FEDERAL RESERVE. BANKING AND MONETARY STATISTICS. 1941-1970. 1976. PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- 1,168 pp. $15.00. SERVE SYSTEM. August 1985. 30 pp. ANNUAL STATISTICAL DIGEST INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 1974-78. 1980. 305 pp. $10.00 per copy. 440 pp. $9.00 each. 1981. 1982. 239 pp. $ 6.50 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1982. 1983. 266 pp. $ 7.50 per copy. December 1986. 264 pp. $10.00 each. 1983. 1984. 264 pp. $11.50 per copy. 1984. 1985. 254 pp. $12.50 per copy. CONSUMER EDUCATION PAMPHLETS 1985. 1986. 231 pp. $15.00 per copy. Short pamphlets suitable for classroom use. Multiple copies 1986. 1987. 288 pp. $15.00 per copy. are available without charge. HISTORICAL CHART BOOK. Issued annually in Sept. $1.25 each in the United States, its possessions, Canada, and Consumer Handbook on Adjustable Rate Mortgages Mexico; 10 or more to one address, $1.00 each. Else- Consumer Handbook to Credit Protection Laws where, $1.50 each. Fair Credit Billing SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- Federal Reserve Glossary RIES OF CHARTS. Weekly. $21.00 per year or $.50 each in A Guide to Business Credit and the Equal Credit Opportunity the United States, its possessions, Canada, and Mexico; Act 10 or more of same issue to one address, $19.50 per year Guide to Federal Reserve Regulations or $.45 each. Elsewhere, $26.00 per year or $.60 each. How to File A Consumer Credit Complaint THE FEDERAL RESERVE ACT, and other statutory provisions If You Borrow To Buy Stock affecting the Federal Reserve System, as amended If You Use A Credit Card through April 20, 1983, with Supplements covering Series on the Structure of the Federal Reserve System amendments through August 1987. 576 pp. $7.00. The Board of Governors of the Federal Reserve System REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- The Federal Open Market Committee ERAL RESERVE SYSTEM. Federal Reserve Bank Board of Directors ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Federal Reserve Banks Regulation Z) Vol. I (Regular Transactions). 1969. 100 Organization and Advisory Committees pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address, $2.00 each. PAMPHLETS FOR FINANCIAL INSTITUTIONS FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY Short pamphlets on regulatory compliance, primarily suit- UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one able for banks, bank holding companies and creditors. address, $1.50 each. THE BANK HOLDING COMPANY MOVEMENT TO 1978: A Limit of 50 copies COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to one address, $2.25 each. The Board of Directors' Opportunities in Community Rein- INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; vestment 10 or more to one address, $1.25 each. The Board of Directors' Role in Consumer Law Compliance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 Combined Construction/Permanent Loan Disclosure and VESTIGATION, by Bonnie E. Loopesko. November Regulation Z 1983. Out of print. Community Development Corporations and the Federal Re- 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET serve INTERVENTION: A REVIEW OF THE LITERATURE, by Construction Loan Disclosures and Regulation Z Ralph W. Tryon. October 1983. 14 pp. Out of print. Finance Charges Under Regulation Z 135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET How to Determine the Credit Needs of Your Community INTERVENTION: APPLICATIONS TO CANADA, GERMA- Regulation Z: The Right of Rescission NY, AND JAPAN, by Deborah J. Danker, Richard A. The Right to Financial Privacy Act Haas, Dale W. Henderson, Steven A. Symansky, and Signature Rules in Community Property States: Regulation B Ralph W. Tryon. April 1985. 27 pp. Out of print. Signature Rules: Regulation B 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO- Timing Requirements for Adverse Action Notices: Regula- MY, by Darrell Cohen and Peter B. Clark. January tion B 1984. 16 pp. Out of print. What An Adverse Action Notice Must Contain: Regulation B 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF Understanding Prepaid Finance Charges: Regulation Z FINANCIAL DEREGULATION, INTERSTATE BANKING, Closing the Loan: A Consumer's Guide to Mortgage Settle- AND FINANCIAL SUPERMARKETS, by Stephen A. ment Costs Rhoades. February 1984. Out of print. Refinancing Your Mortgage 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- A Consumer's Guide to Lock-Ins LINES, AND THE LIMITS OF CONCENTRATION IN LO- CAL BANKING MARKETS, by James Burke. June 1984. 14 pp. Out of print. 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN THE UNITED STATES, by Thomas D. Simpson and STAFF STUDIES.- Summaries Only Printed in the Patrick M. Parkinson. August 1984. 20 pp. Bulletin 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF Studies and papers on economic and financial subjects that THE LITERATURE, by John D. Wolken. November are of general interest. Requests to obtain single copies of 1984. 38 pp. Out of print. the full text or to be added to the mailing list for the series 141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAYmay be sent to Publications Services. MENT COSTS, by William Dudley. November 1984. 15 pp. Out of print. 142. MERGERS AND ACQUISITIONS BY COMMERCIAL BANKS, 1960-83, by Stephen A. Rhoades. December Staff Studies 115-125 are out of print. 1984. 30 pp. Out of print. 143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF THE ELECTRONIC FUND TRANSFER ACT: RECENT SURVEY EVIDENCE, by Frederick J. Schroeder. April 1985. 23 pp. Out of print. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- 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 Gregory E. Elliehausen and Robert D. Kurtz. May 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- KET INTERVENTION, by Donald B. Adams and Dale 1985. 10 pp. W. Henderson. August 1983. 5 pp. Out of print. 145. SERVICE CHARGES AS A SOURCE OF BANK INCOME 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- AND THEIR IMPACT ON CONSUMERS, by Glenn B. VENTION: JANUARY-MARCH 1975, by Margaret L. Canner and Robert D. Kurtz. August 1985. 31 pp. Out Greene. August 1984. 16 pp. Out of print. of print. 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, garet L. Greene. October 1984. 40 pp. Out of print. by Thomas F. Brady. November 1985. 25 pp. 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) VENTION: OCTOBER I98O-OCTOBER 1981, by Margaret INDEXES OF THE MONETARY AGGREGATES, by Helen L. Greene. August 1984. 36 pp. T. Farr and Deborah Johnson. December 1985. 42 pp. 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF TERNATIONAL TRADE AND OTHER ECONOMIC VARIA- THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- BLES: A REVIEW OF THE LITERATURE, by Victoria S. TION RESULTS, by Flint Bray ton and Peter B. Clark. Farrell with Dean A. DeRosa and T. Ashby McCown. December 1985. 17 pp. January 1984. Out of print. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- IN BANKING BEFORE AND AFTER ACQUISITION, by DEUTSCHE MARK INTERVENTION, by Laurence R. Stephen A. Rhoades. April 1986. 32 pp. Jacobson. October 1983. 8 pp. 150. STATISTICAL COST ACCOUNTING MODELS IN BANK- 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- ING: A REEXAMINATION AND AN APPLICATION, by TWEEN EXCHANGE RATES AND INTERVENTION: A John T. Rose and John D. Wolken. May 1986. 13 pp. REVIEW OF THE TECHNIQUES AND LITERATURE, by 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT Kenneth Rogoff. October 1983. 15 pp. PRICING FROM 1983 THROUGH 1985, by Patrick I. 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- Mahoney, Alice P. White, Paul F. O'Brien, and Mary VENTION, AND INTEREST RATES: AN EMPIRICAL IN- M. McLaughlin. January 1987. 30 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Survey of Consumer Finances, 1983. 9/84. REVIEW OF THE LITERATURE, by Mark J. War- Bank Lending to Developing Countries. 10/84. shawsky. April 1987. 18 pp. Survey of Consumer Finances, 1983: A Second Report. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis 12/84. and Alice P. White. September 1987. 14 pp. Union Settlements and Aggregate Wage Behavior in the 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF 1980s. 12/84. PROPOSED CEILINGS ON CREDIT CARD INTEREST The Thrift Industry in Transition. 3/85. RATES, by Glenn B. Canner and James T. Fergus. A Revision of the Index of Industrial Production. 7/85. October 1987. 783 pp. Financial Innovation and Deregulation in Foreign Industrial 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark Countries. 10/85. J. Warshawsky. November 1987. 25 pp. Recent Developments in the Bankers Acceptance Market. 1/86. The Use of Cash and Transaction Accounts by American REPRINTS OF BULLETIN ARTICLES Families. 2/86. Most of the articles reprinted do not exceed 12 pages. Financial Characteristics of High-Income Families. 3/86. Prices, Profit Margins, and Exchange Rates. 6/86. Agricultural Banks under Stress. 7/86. Limit of 10 copies Foreign Lending by Banks: A Guide to International and U.S. Statistics. 10/86. Recent Developments in Corporate Finance. 11/86. Foreign Experience with Targets for Money Growth. 10/83. U.S. International Transactions in 1986. 5/87. Intervention in Foreign Exchange Markets: A Summary of Measuring the Foreign-Exchange Value of the Dollar. 6/87. Ten Staff Studies. 11/83. Changes in Consumer Installment Debt: Evidence from the A Financial Perspective on Agriculture. 1/84. 1983 and 1986 Surveys of Consumer Finances. 10/87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Index to Statistical Tables References are to pages A3-A68 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 18-20 Turnover, 15 Domestic finance companies, 37 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 8 Financial institutions, 26 Reserves and related items, 3, 4, 5, 12 Foreign banks, U.S. branches and agencies, 21 Deposits (See also specific types) Nonfinancial corporations, 36 Banks, by classes, 3, 18-20, 21 Automobiles Federal Reserve Banks, 4, 10 Consumer installment credit, 40, 41 Turnover, 15 Production, 47, 48 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) Discounts and advances by Reserve Banks (See Loans) Dividends, corporate, 35 BANKERS acceptances, 9, 23, 24 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 Business activity, nonfinancial, 44 Business expenditures on new plant and equipment, 36 FARM mortgage loans, 39 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 9, 10, 11, 31, 32 Federal credit agencies, 33 Federal finance Debt subject to statutory limitation, and types and CAPACITY utilization, 46 ownership of gross debt, 30 Capital accounts Receipts and outlays, 28, 29 Banks, by classes, 18 Treasury financing of surplus, or deficit, 28 Federal Reserve Banks, 10 Treasury operating balance, 28 Central banks, discount rates, 67 Federal Financing Bank, 28, 33 Certificates of deposit, 24 Federal funds, 6, 17, 19, 20, 21, 24, 28 Commercial and industrial loans Federal Home Loan Banks, 33 Commercial banks, 16, 19 Federal Home Loan Mortgage Corporation, 33, 38, 39 Weekly reporting banks, 19-21 Federal Housing Administration, 33, 38, 39 Commercial banks Federal Land Banks, 39 Assets and liabilities, 18-20 Federal National Mortgage Association, 33, 38, 39 Commercial and industrial loans, 16, 18, 19, 20, 21 Federal Reserve Banks Consumer loans held, by type, and terms, 40, 41 Condition statement, 10 Loans sold outright, 19 Discount rates (See Interest rates) Nondeposit funds, 17 U.S. government securities held, 4, 10, 11, 30 Real estate mortgages held, by holder and property, 39 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 23, 24, 37 Federal Savings and Loan Insurance Corporation insured Condition statements (See Assets and liabilities) institutions, 26 Construction, 44, 49 Federally sponsored credit agencies, 33 Consumer installment credit, 40, 41 Finance companies Consumer prices, 44, 50 Assets and liabilities, 37 Consumption expenditures, 51, 52 Business credit, 37 Corporations Loans, 40, 41 Nonfinancial, assets and liabilities, 36 Paper, 23, 24 Profits and their distribution, 35 Financial institutions Security issues, 34, 65 Loans to, 19, 20, 21 Cost of living (See Consumer prices) Selected assets and liabilities, 26 Credit unions, 26, 40. (See also Thrift institutions) Float, 4 Currency and coin, 18 Flow of funds, 42, 43 Currency in circulation, 4, 13 Foreign banks, assets and liabilities of U.S. branches and Customer credit, stock market, 25 agencies, 21 Foreign currency operations, 10 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

A78 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 Special drawing rights, 4, 10, 53, 54 Federal Reserve Banks, 10, 11 State and local governments Financial institutions, 26, 39 Deposits, 19, 20 Holdings of U.S. government securities, 30 LABOR force, 45 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities issued by, 19, 20, 26 Loans (See also specific types) Rates on securities, 24 Banks, by classes, 18-20 Stock market, selected statistics, 25 Commercial banks, 3, 16, 18-20 Stocks (See also Securities) Federal Reserve Banks, 4, 5, 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 TAX receipts, federal, 29 Production, 46, 48 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

A79 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 George N. Hatsopoulos Frank E. Morris Richard N. Cooper Robert W. Eisenmenger NEW YORK* 10045 John R. Opel E. Gerald Corrigan To be announced Thomas M. Timlen Buffalo 14240 Mary Ann Lambertsen John T. Keane PHILADELPHIA 19105 Nevius M. Curtis Edward G. Boehne Peter A. Benoliel William H. Stone, Jr. CLEVELAND* 44101 Charles W. Parry W. Lee Hoskins John R. Miller William H. Hendricks Cincinnati 45201 Owen B. Butler Charles A. Cerino1 Pittsburgh 15230 James E. Haas Harold J. Swart1 RICHMOND* 23219 Robert A. Georgine Robert P. Black Hanne Merriman Jimmie R. Monhollon Baltimore 21203 Gloria L. Johnson Robert D. McTeer, Jr.1 Charlotte 28230 G. Alex Bernhardt 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 Roy D. Terry Fred R. Herr1 Jacksonville 32231 E. William Nash, Jr. James D. Hawkins1 Miami 33152 Sue McCourt Cobb Patrick K. Barron1 Nashville 37203 Condon S. Bush Donald E. Nelson New Orleans 70161 Sharon A. Perlis Henry H. Bourgaux CHICAGO* 60690 Robert J. Day Silas Keehn Marcus Alexis Daniel M. Doyle Detroit 48231 Richard T. Lindgren Roby L. Sloan1 ST. LOUIS 63166 Robert L. Virgil, Jr. Thomas C. Melzer H. Edwin Trusheim James R. Bowen Little Rock 72203 James R. Rodgers John F. Breen Louisville 40232 Lois H. Gray James E. Conrad Memphis 38101 Sandra B. Sanderson Paul I. Black, Jr. MINNEAPOLIS 55480 Michael W. Wright Gary H. Stern John A. Rollwagen Thomas E. Gainor Helena 59601 Marcia S. Anderson Robert F. McNellis KANSAS CITY 64198 Irvine O. Hockaday, Jr. Roger Guffey Fred W. Lyons, Jr. Henry R. Czerwinski Denver 80217 James C. Wilson 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. Boy kin Hugh G. Robinson William H.Wallace Tony J. Salvaggio1 El Paso 79999 Peyton Yates Sammie C. Clay Houston 77252 Walter M. Mischer, Jr. Robert Smith, IIP San Antonio 78295 Robert F. McDermott Thomas H. Robertson SAN FRANCISCO 94120 Robert F. Erburu Robert T. Parry Carolyn S. Chambers Carl E. Powell John F. Hoover1 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 Carol A. Nygren 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 FRASER http://fraser1.s. tSloeuniisorf eVdi.coer gP/r esident. Federal Re2s.e rEvxee cBuatinvek Voifc Se tP. rLeosiudiesnt.

A80 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories 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