BULLETI FEDERAL RESERVNE Reserve... · 2011. 10. 23. · ance of the House Committee on Banking, Finance and Urban Affairs, June 9, 1987. 655 ANNOUNCEMENTS Statement by Chairman Volcker

VOLUME 73 • NUMBER 8 D AUGUST 1987

FEDERAL RESERVE

BULLETIN

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C.

PUBLICATIONS COMMITTEE

Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost• Griffith L. Garwood • James L. Kichline • Edwin M. Truman

The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible foropinions 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.

Table of Contents

633 MONETARY POLICY REPORT TO THECONGRESS

The economy expanded at a somewhat ac-celerated pace in the first half of 1987, andthe civilian unemployment rate declinedover the period to 6.1 percent in June, thelowest level in this decade.

647 INDUSTRIAL PRODUCTION

Industrial production increased an estimat-ed 0,5 percent in May.

649 STATEMENT TO CONGRESS

Manuel H. Johnson, Vice Chairman, Boardof Governors, offers testimony on the issueof money laundering, including efforts topress for greater international cooperationby bank supervisors in addressing the use ofbanking organizations to launder money,before the Subcommittee on Financial Insti-tutions Supervision, Regulation and Insur-ance of the House Committee on Banking,Finance and Urban Affairs, June 9, 1987.

655 ANNOUNCEMENTS

Statement by Chairman Volcker on thedeath of Arthur F. Burns.

Meeting of Consumer Advisory Council.

Nominations sought for appointments toConsumer Advisory Council.

Direct deposit of social security paymentsin the United Kingdom.

Amendment to Regulation Y.

Comments requested on revised proposal tocharge assessments and fees for certainsupervisory activities.

Changes in Board staff.

Admission of two state banks to member-ship in the Federal Reserve System.

659 LEGAL DEVELOPMENTS

Various bank holding company, bank ser-vice corporation, and bank merger orders;and pending cases.

Ai FINANCIAL AND BUSINESS STATISTICS

A3 Domestic Financial StatisticsA44 Domestic Nonfinancial StatisticsA53 International Statistics

A69 GUIDE TO TABULAR PRESENTATION,STATISTICAL RELEASES, AND SPECIALTABLES

A74 BOARD OF GOVERNORS AND STAFF

A76 FEDERAL OPEN MARKET COMMITTEE

AND STAFF; ADVISORY COUNCILS

A78 FEDERAL RESERVE BOARDPUBLICATIONS

A81 INDEX TO STATISTICAL TABLES

A83 FEDERAL RESERVE BANKS, BRANCHES,AND OFFICES

A84 MAP OF FEDERAL RESERVE SYSTEM

Monetary Policy Report to the Congress

Report submitted to the Congress on July 21,1987, pursuant to the Full Employment and Bal-anced Growth Act of 1978.'

MONETARY POLICY AND THE ECONOMICOUTLOOK I OR 1987 AND 1988

The economy expanded at a somewhat acceler-ated pace in the first half of 1987, and the civilianunemployment rate declined over the period to6.1 percent in June, the lowest level in thisdecade. Moreover, the pattern of activity hasexhibited encouraging signs that a turnaround inthe trade sector is under way. An improvementin net exports in real terms appears to be provid-ing a lift to activity in the industrial sector,offsetting slower growth of domestic spendingand sustaining a moderate rise in overall domes-tic production. However, the process of restor-ing balance to the U.S. external accounts hasinvolved a sizable increase in the prices paid forimported goods. These price increases have oc-curred at the same time that a rebound in worldoil prices has been carrying inflation rates abovelast year's modest pace.

Although some of the elements necessary forsustaining economic growth are now beginning tofall into place, the economic outlook continues tobe clouded by a number of imbalances, risks, anduncertainties. The experience of the first halfunderscored, in particular, the dangers associ-ated with a loss of market confidence in the dollarand the related potential for a rekindling ofinflation expectations. The Federal Reserve, inimplementing monetary policy, was sensitive tothese dangers, while it continued to providesupport for sustainable economic growth. During

1. The charts to the report are available on request fromPublications Services, Board of Governors of the FederalReserve System, Washington, D.C. 20551.

the first part of the year, growth in money andcredit slowed from the rapid pace of 1986, eventhough pressures on the reserve positions ofdepository institutions remained mild. Thosepressures were increased somewhat in late Apriland May, however, as the dollar fell sharplyagainst other key currencies, inflation expecta-tions flared up, and long-term interest ratesjumped to higher levels. In response to thesesteps, and to complementary policy actionstaken abroad, the dollar has stabilized, and inter-est rates have retreated somewhat from theirMay highs.

If the nation is to achieve an orderly transitionto better external balance, one marked by aminimum of financial or inflationary pressures,responsible action by many parties—in additionto the Federal Reserve—will be necessary. Fur-ther progress in reducing our federal budgetdeficit is essential: a failure to achieve this often-stated objective could only damage confidence inour ability to deal with our economic problemsand contribute to imbalances in financial marketsand the economy. In addition, satisfactorygrowth in the other major industrial countries iscrucial, as are efforts on all sides to maintainand improve the openness of the internationalmarketplace. The private sector also mustplay a constructive role by remaining sensitiveto wage and price practices that promote theinternational competitiveness of American busi-ness.

Economic and I'inancial Background

The economic expansion has now progressedwell into its fifth year. Real gross national prod-uct rose at a AVA percent annual rate in the firstquarter. However, much of the increase in pro-duction reflected a rebuilding of business inven-tories that had been drawn down late in 1986, andreal GNP appears to have increased at an appre-ciably more moderate pace in the second quarter.

634 Federal Reserve Bulletin H August 1987

Nonetheless, growth remained strong enough tosustain a downtrend in unemployment.

Beneath these solid gains in aggregate eco-nomic activity have been welcome improve-ments in the fortunes of sectors that have failedto participate in the increasing prosperity of thepast several years. As suggested above, the mostsignificant development has been the emergingimprovement in the nation's trade performance,which has begun to close the gap between thepace of growth in the industrial sector and in therest of the economy; indeed, some segments ofmanufacturing have reached relatively high lev-els of capacity utilization and strong profitability.Economic strains also appear to be casing inother troubled sectors. Oil-well drilling, whilestill at depressed levels, has turned up as aconsequence of the firming of world oil prices.Agricultural income was quite high last year,although it continued to be heavily dependent ongovernment support; farmland values seem tohave stabilized, and the amount of delinquentfarm loans has begun to decline.

While the external sector has been strengthen-ing in real terms in recent quarters, growth indomestic demand has moderated considerably.To some extent, the slower rise in household andbusiness purchases in the early months of thisyear was a reflection of the acceleration that hadoccurred at the end of 1986, motivated by taxconsiderations. However, consumers, in partic-ular, have shown signs of less exuberance in theirexpenditure patterns after a period of severalyears in which their willingness to spend increas-ing proportions of their income provided consid-erable thrust to business activity. A moderationof domestic spending growth is, of course, afundamental ingredient in achieving better exter-nal balance without putting excessive strains onavailable resources.

A key element in the recent trade develop-ments has been the steep drop in the foreignexchange value of the dollar—almost 40 percenton a trade-weighted basis against the currenciesof the other Group of Ten countries—since early1985. That decline, in conjunction with notablerestraint on labor costs, has greatly enhanced thecompetitiveness of U.S. producers in interna-tional markets. At the same time, though, the

depreciation has caused prices of imported goodsto increase—sharply in some cases—and hasexacerbated a bulge in prices coming from higherenergy costs. The rise in consumer prices, aver-aging more than 5 percent at an annual rate overthe first five months of this year, was a disturbingdeparture from recent experience. Moreover, asthe dollar exhibited continued weakness in theearly spring, and with progress toward improve-ment in the U.S. current account slower thanmany had anticipated, concerns mounted aboutinflation prospects. This was reflected for a timein rising prices of precious metals and otheractively traded commodities, an event that onlyserved to reinforce the inflation fears that simul-taneously were unsettling U.S. securities mar-kets.

In these circumstances, and with the economicadvance evidencing reasonable momentum, theFederal Reserve in late April and May adjustedits open market operations to impose a somewhatgreater, but still quite limited, degree of pressureon the reserve positions of depository institu-tions. This step was reassuring to the markets.Coupled with complementary actions by mone-tary authorities abroad and more favorable newson prices and U.S. merchandise trade flows, thefirming of money market conditions contributednot only to a turnaround in the dollar on ex-change markets but also to a rally in bond prices.On balance, however, short-term interest ratescurrently are about Vi percentage point abovetheir levels at the time of the Board's Februarymonetary policy report to the Congress, andlong-term rates are up about a full percentagepoint.

The rate of growth of the money stock mea-sures M2 and M3 has been well below that of lastyear and close to, or below, the lower end of thetarget ranges adopted in February. This has beenviewed as acceptable by the Federal Open Mar-ket Committee (FOMC), given the inflation andexchange rate developments described above, aswell as indications of grcater-than-anticipatedstrength in the velocity of money (that is, theratio of nominal GNP to money). M2 rose at anannual rate of only 4 percent between the fourthquarter and June, appreciably below the growthrange of 5'/2 to 8'/2 percent for the year, while M3

Monetary Policy Report to the Congress 635

grew at a 5lA percent rate, a shade below thelower bound of its identical range.

The marked deceleration of monetary growth,and the accompanying rise in M2 and M3 veloc-ity after two years of decline, reflected a varietyof influences. Some unwinding of the buildup inbalances that occurred late last year in connec-tion with a huge volume of tax-related transac-tions may have been involved; tax reform alsomay have damped growth in money as individu-als reduced their additions to deposit holdingsrather than using consumer credit, on whichinterest is no longer fully tax-deductible. Capitalconstraints on the growth of bank and thriftinstitution assets may have limited the deposito-ries' efforts to seek funds, an effect likely toexpress itself most fully at the level of M3, whichencompasses a broad range of depository-insti-tution liabilities.

But it is another factor that appeared mostimportant, particularly in the case of M2.Changes in deposit rates have lagged changes inmarket rates—behavior exhibited quite consis-tently in the period since most restrictions ondeposit rates were removed. With market ratesrising, financial assets other than those includedin M2 have become relatively more attractive tothe public, the opposite of developments in 1985and 1986. This same phenomenon, reinforced bythe normal downward adjustment of compensat-ing-balance requirements as rising interest ratesenable banks to earn more on business demanddeposits, has had a marked effect on Ml growthas well, which slowed to a 10 percent annual ratebetween the fourth and second quarters (and to a7V4 percent rate between the fourth quarter andJune); M1 velocity appears to have changed littlein the second quarter, after more than two yearsof steep decline.

Reflecting in large part the diminution of thefederal deficit and a slowing in state and localgovernment borrowing, influenced by the TaxReform Act, aggregate credit expansion in theeconomy has slowed noticeably this year. Thedebt of domestic nonfinancial sectors is esti-mated to have expanded at an annual rate ofabout 93/4 percent through June, still high relativeto the growth of nominal GNP but less rapid thanin the past several years and within the monitor-

ing range of 8 to 11 percent specified by theFederal Open Market Committee.

Ranges for Monex and Credit Growth in1987 and 1988

At its meeting earlier this month, the FOMC didnot change the 1987 ranges for money and creditgrowth that it had established in February. Asindicated at that time, operating decisions willcontinue to be made not only with due regard tothe behavior of these aggregates, but also in lightof evidence on emerging trends in economicactivity and inflation and developments in do-mestic and international financial markets. Atthis juncture, given the actual growth achieved inthe first half, it seems likely that, absent majormovements in interest rates that alter the incen-tives to hold monetary assets, expansion in M2and M3 around the lower ends of their 5Vi to 81/?percent annual ranges may well be appropriate.Indeed, should the recent tendency toward astrengthening in velocity, which has been partic-ularly noticeable in the case of M2, persist, or ifinflationary pressures appear to be mounting,some shortfall from the annual ranges might wellbe appropriate. With regard to the domestic debtaggregate, the FOMC anticipated that the slowerpace of debt growth in the first half wouldcontinue and that the aggregate would end theyear well within the monitoring range of 8 to IIpercent.

Consistent with the objective of maintainingprogress over time toward general price stabilitywhile supporting sustainable growth in economicactivity, the FOMC decided to adopt on a tenta-tive basis lower growth ranges for money andcredit in 1988. The target growth ranges for M2and M3 were reduced Vi percentage point, to 5 to8 percent, measured from the fourth quarter of1987 to the fourth quarter of 1988. At the same

Ranges of growth for monetary and credit aggregatesPercent change, fourth quarter to fourth quarter

Monetary or credit aggregate

M2M3 .Credit .

1987 1988,tentative

SVi to 8I/2 5 to 851/2 to 8'/2 5 to 8

8 to II 7'/2to lOH

636 Federal Reserve Bulletin LI August 1987

time, the monitoring range for growth of nonfi-nancial sector debt also was tentatively reducedby '/: percentage point, to IV2 to IO'/J percent.

The Committee noted that M1 has continued toexhibit considerable sensitivity to changes ininterest rates, among other factors, as illustratedby its sharp deceleration in the first half of thisyear. In view of this, and the still-limited expe-rience with the behavior of deregulated transac-tions accounts, the Committee decided not to seta specific target range for M1 for the second halfof 1987, and no tentative range was adopted for1988. In its policy deliberations over the remain-der of the year, the FOMC will take account ofMl growth in light of the behavior of its velocity,incoming information about the economy andfinancial markets, and the degree of emergingprice pressures.

/Economic Projections

As noted above, the Committee believes that themonetary objectives that it has set are consistentwith restraint on inflation in the context of con-tinued moderate growth in economic activity andprogress toward a sustainable external position.As is indicated in the following table, the centraltendency of the forecasts of Committee membersand other Reserve Hank presidents is for growthin real GNP of 2Vi to 3 percent in 1987 and 1988.Between now and the end of next year, this paceof activity is expected to generate jobs in aboutsufficient number to match the expansion of thework force. Consequently, the civilian unem-ployment rate is not expected to change appre-ciably from the 6 'A percent average of the secondquarter, although recent experience suggests thatthe projected growth of real GNP might lead tosomewhat lower unemployment.

Real net exports of goods and services arcexpected to strengthen further while the growthof domestic demand remains relatively subdued.The improved competitive position of U.S. pro-ducers resulting in large part from the dollardepreciation of the past two years has only begunto be reflected in trade flows, and further im-provement in the nation's external positionshould be realized in coming quarters. House-hold spending is expected to grow slowly, butstronger increases in business investment, espc-

Heonoinie projections for IW7 andPercent

GNP or unemployment

GNP, change from fourth quarter tofourth quarter

NominalRealImplicit deflator

Civilian unemployment rate, averagelevel in the fourth quarter

GNP, change from fourth quarter tofourth quarter

NominalRealImplicit deflator

Civilian unemployment rate, averagelevel in the fourth quarter

FOMC members andother FRB Presidents

Range Centraltendency

1987

2 to VA3 to 4'/4

6'/4 to 7VA to 31<A to 4

6,1 to 6.5 6.2 to 6.4

1988

5 to 81 to 3

2'A to 5

5.9 to 6.8

5% to 7Vh to 3VA to 4'/«

6 to 6.5

1. The administration has yet to publish its midscssion budgetreview but spokesmen have indicated that earlier forecasts will berevised. As a consequence, the customary comparison of l'OMCforecasts and administration economic goals has not been included inthis report.

cially in equipment, are anticipated as industrialfirms respond to more favorable sales trends.

Prices, as measured by the implicit deflator forGNP, are expected to rise V/i to 4 percent overthe four quarters of 1987—slightly more than thecentral-tendency range reported to the Congressin February. For 1988, projections of the in-crease in the GNP deflator center on 4 percent.Assuming world oil prices are more stable, thereshould be no repetition of the rebound in domes-tic energy prices that raised the general rate ofinflation earlier this year. However, the acceler-ation in prices of non-oil imported goods that isoccurring in the wake of the decline in the foreignexchange value of the dollar likely will continuefor a time to provide some impetus to inflation,even if the dollar is more stable over the periodahead, as assumed. The size of further increasesin import prices resulting from the depreciationto date will depend on the aggressiveness withwhich foreign exporters and U.S. distributorsseek to restore profit margins that have beensqueezed in the past two years. The view thatinflation next year will not rise significantly fromthe pace projected for 1987 is grounded in a beliefthat recognition of the potential for losses of


market share and job opportunities will continueto influence wage- and price-setting behavior.

While restraint on inflation is crucial in achiev-ing an orderly adjustment as our massive exter-nal imbalance is corrected, so too is continuedprogress in reducing the federal budget deficit.Inflows of foreign capital will shrink in step withthe reduction in our current account deficit, andin that context excessive federal borrowing re-quirements, as they put pressure on financialmarkets, pose a threat to the ability of oureconomy to fund necessary private capital for-mation.

Finally, the members of the Committee andother Reserve Bank presidents also view theprospects for a healthy U.S., and world, econ-omy as depending significantly on the avoidanceof further protectionist measures here andabroad and on satisfactory economic growth inother major industrial countries.

Tin-: PERFORMANCE OE THE ECONOMY

DURING THE /'/RSI HALF OE 1987

The economy continued to expand in the firsthalf of 1987, and, in contrast to the pattern of thepreceding four years, the composition of activityappeared to be moving toward a better balancebetween domestic spending and domestic pro-duction. The overall growth in output during thefirst six months of the year led to a net gain injobs of around 1 lA million, a faster pace of hiringthan during 1986. Moreover, the civilian unem-ployment rate, which had hovered close to 7percent throughout most of last year, moveddown to 6.1 percent by June.

Inflation picked up early this year, with mostbroad indexes of prices posting increases sub-stantially above those of the past several years.In large part, the acceleration reflected develop-ments in oil markets, where prices have retracedpart of last year's decline. But rising prices forother imported goods also began to surface at theretail level, and, at the producer level, pricespaid for raw materials and other supplies clearlyturned up. Wage trends, however, have re-mained both stable and restrained.

Higher inflation rates have been, in part, aconsequence of the ongoing adjustment of theU.S. economy to a lower foreign exchange value

of the dollar. Prices of non-oil imports, particu-larly for finished consumer goods and capitalequipment, have been rising at rates in excess ofdomestic prices in recent quarters, damping thedemand for imported goods. At the same time,goods produced in the United States have be-come more competitive in world markets. Thevolume of exports, which began to pick upnoticeably in the second half of 1986, continuedto expand in early 1987, although the reboundlikely has been limited by slow economic growthabroad.

Toward the end of 1986, some manufacturingindustries—notably those producing textiles, ap-parel, steel, chemicals, and paper—began toexperience a firming in demand apparently asso-ciated with improved trade conditions. In thefirst six months of 1987, production of officeequipment and some other high-tech capitalgoods as well as several categories of industrialmachinery also picked up. Moreover, domesticenergy output stabilized, after having been aserious drag on industrial production last year.On the whole, the pace of activity in the goods-producing sector moved back into line with theoverall rise in GNP. The index of industrialproduction increased at a 3 percent annual ratebetween the third quarter of 1986 and the secondquarter of 1987, after little change during thepreceding year.

The External Sector

The dollar depreciated further against other ma-jor currencies in the first half of 1987, with mostof the adjustment concentrated in one episodeearly in January and in another during a period ofunsettled markets in the early spring. Since mid-May, the dollar has retraced part of its recentdecline, but, on a trade-weighted basis againstother G-10 currencies, it remains about 6 percentbelow its average level in December 1986 andalmost 40 percent below its peak in February1985. The underlying downward pressure on thedollar during the first half was fueled by percep-tions that progress in reducing the U.S. currentaccount deficit had been slow and by disappoint-ment concerning prospects for policy adjust-ments, here and abroad, aimed at restoring betterbalance in the world economy. An offsetting


factor until recently was the widening of interestrate differentials between the United States andthe other major industrial countries, as rates rosein the United States while declining abroad.

The U.S. current account deficit stood at justunder $150 billion in the first quarter of 1987,little changed, in nominal terms, from the deficitin the second half of 1986. The volume of mer-chandise imports ofgoods other than oil has beenabout flat in recent quarters, after rising steadilyfor three and one-half years. Demand has leveledoff for a wide range of imported industrial mate-rials, consumer goods, and capital equipment.This adjustment occurred, however, as dollarprices for these goods began to pick up, and thusthe value of non-oil imports has continued toedge higher. Demand for imported petroleumproducts dropped back early this year, but withworld oil prices higher, the U.S. oil import billstayed at about its 1986 level.

At the same time, the expansion in the volumeof merchandise exports that began in mid-1986extended into early 1987. The improvement inforeign sales has been broadly based; in particu-lar, shipments abroad of industrial materials andcapital goods, which account for the bulk of U.S.merchandise exports, both were up about 10percent in real terms in the first quarter from theaverage in the first half of 1986. The volume ofagricultural exports also firmed somewhat re-cently, as sharply reduced support prices appearto be combining with the lower dollar to boostforeign demand for some U.S. farm products.

The adjustment in the U.S. trade position todate has occurred without much impetus fromeconomic expansion abroad. Growth of realCiNP in other industrial countries averaged lessthan 2Vi percent last year; moreover, economicactivity began to slow in the second half of theyear, and, at least in Kurope, the weaknesscontinued into early 1987. Hxport and importvolumes in Hurope and Japan have begun toadjust to the exchange rate movements of thepast two years, cutting into the growth generatedby their external sectors. While growth in domes-tic demand has been maintained above the ratefor domestic production, it, too, has slowed andhas not taken up the slack from a weak externalsector.

Outside of the industrial countries, average

growth last year was quite uneven and, on bal-ance, provided only a limited offset to slowereconomic activity in Europe and Japan. Weak-ness in oil markets held down OPIiC growthwhile the newly industrialized countries in Asiacontinued to expand strongly. In Latin America,which is an important market for U.S exports,output rose close to 4 percent for a third year, amarked turnaround from the 1982-83 period,when the onset of external financing difficultiesseriously disrupted trade. Internal pressures tomaintain reasonably strong growth persist inthese countries; such growth could be facilitatedby an improved performance of the industrialeconomics as a group.

I he Household Sector

Consumer spending weakened considerably inthe first half of 1987, after three years in whichreal gains averaged 3V4 percent per year. Inparticular, households cut back sharply theirpurchases of durable goods and outlays for non-durables flattened out; spending for services,however, continued to trend up. Slower sales ofnew automobiles contributed importantly to theoverall deceleration in consumer spending. Dur-ing the first half, sales of new cars averaged 10million units at an annual rate, down from arecord 11 '/> million units in 1986. The slackeningin demand was most noticeable for domesticmakes and persisted despite the continuation ofspecial incentive programs on a wide range ofmodels.

The deceleration in consumer outlays, espe-cially for durables such as motor vehicles, furni-ture, and home appliances, followed a period ofseveral years during which a variety of factorswere working to encourage households to in-crease their holdings of big-ticket items: rela-tively moderate increases, or even decreases, inthe prices of many home goods; declines ininterest rates; and pent-up demands from theperiod of economic weakness in the early 1980s.As those influences dissipated, and with thepersonal saving rate reaching an historically lowlevel by late 1986, consumers apparently becamemore cautious in their buying patterns. Nonethe-less, survey evidence still suggested that house-


holds' evaluations of market conditions for majorpurchases and of their personal finances re-mained generally positive.

During the first five months of 1987, growth innominal disposable income picked up from its1986 pace; but, with consumer prices rising morerapidly, income growth in real terms was littledifferent from the 2 percent pace of the precedingtwo years. However, the aggregate balance sheetof the household sector showed further improve-ment early this year. Asset holdings were bol-stered especially by gains in stock prices, whiledebt accumulation slowed. Growth of mortgagedebt dropped back from the extraordinary paceof late 1986 despite the popularity of home equityloans, and growth of consumer credit droppedsharply. To some extent, the deceleration inconsumer debt, as well as the slowdown inspending on durable goods, may be a conse-quence of the rapid rise in household debt bur-dens during the past several years. In addition,the new tax law diminished the incentive tofinance expenditures with installment credit. De-spite the slower growth of consumer and mort-gage debt, some indicators suggest that a consid-erable number of households still are havingproblems servicing existing liabilities. Althoughsome loan delinquency rates dropped a bit,others rose in the first quarter, as did personalbankruptcies.

Spurred by a decline in mortgage interestrates, which reached a nine-year low at the endof March, starts of new single-family homesaveraged 1 'A million units at an annual rate fromJanuary through April, the highest level since thelate 1970s. Sales of single-family homes, whichhad been boosted by tax considerations at theend of 1986, also remained brisk through April.Subsequently, the backup in mortgage rates toearly-1986 levels resulted in some reduction insingle-family homebuilding, to around the pacethat prevailed last fall. In the multifamily market,the downtrend in activity that began in early 1986continued through the first half of 1987. In thesecond quarter, multifamily starts were one-thirdbelow last year's peak. Despite the adjustmentthus far to overbuilding and the reduced after-taxprofitability of multifamily housing investment,rental vacancy rates nationwide are still close torecord highs.

The Business Sector

Business spending on plant and equipment fellsharply in the first quarter of 1987. For equip-ment, the weakness was concentrated in Januaryand followed a tax-induced bunching of pur-chases in late 1986. In subsequent months, ship-ments of nondefense capital goods recovered,leaving the average level for April and May, innominal terms, IV4 percent above the third quar-ter of last year. New orders for nondefensecapital goods also dipped at the beginning of theyear, but then strengthened noticeably as book-ings for aircraft and for office and computingequipment rose sharply. The recent level oforders appears consistent with a continuation inthe near term of the moderate uptrend in spend-ing on equipment that has prevailed over the pasttwo years. According to responses to privatesurveys concerning business capital spendingplans for the year as a whole, firms still intend todirect the bulk of these purchases toward mod-ernization and cost-saving improvements in theirproduction lines.

In contrast, the environment for expansion ofplant facilities and office space is still generallyunfavorable. Large amounts of vacant and under-used space in both office buildings and factoriesbegan to take a toll of nonresidential constructionlast year; and less favorable treatment of com-mercial structures under the new tax code rein-forced the tendencies toward a lower level ofactivity in this sector. As a result, spending forcommercial and industrial buildings dropped fur-ther in the first quarter of 1987, to a level about 20percent below that of a year earlier. The declinein spending for these types of buildings ac-counted for the overall weakness in nonresiden-tial structures early this year, in the face of anupturn in oil drilling and some increases in othercategories.

A sizable swing in business inventories aroundthe turn of this year was associated with sharp,tax-induced fluctuations in sales. The surge inconsumer and business spending at the end of1986 was met to a considerable extent by drawingdown stocks, which were then rebuilt at thebeginning of this year. This spring, inventory-sales ratios generally were not indicating seriousimbalances, with the notable exception of the

640 Federal Reserve Bulletin I J August 1987

auto industry. Domestic car makers boosted pro-duction in early 1987 in excess of slackeningsales, leading to a substantial backlog of unsoldcars on dealer lots. My June, a scaling back ofassemblies had stemmed further accumulation,but the industry entered the summer with stocksthat were quite large by historical standards.

Hcfore-tax profits of nonfinancial corpora-tions, which had slipped a bit relative to GNPsince 1984, rose in the first quarter. After-taxprofits relative to GNI' were up as well, althoughthe rise was damped by increases in corporatetax liabilities associated with the new tax law.Corporations paid out a slightly larger share ofearnings as dividends in the first quarter; none-theless, internally generated funds remained siz-able relative to investment outlays.

The (iovcninwnl Sector

A substantial reduction in the federal budgetdeficit for fiscal year 1987 appears in train, withthe most recent estimate from the CongressionalBudget Office at $161 billion, compared with $221billion in fiscal 1986. Growth in receipts has beenextremely rapid; this reflects, in large part, aone-time surge in tax payments this April fromindividuals who realized capital gains last De-cember, taking advantage of lower tax ratesunder the old tax code. But more fundamentalprogress in reducing spending growth also ap-pears to have been made in the wake of theGramm-Rudman-Hollings legislation. Total out-lays have been rising al a rate of around 2 percentin the current fiscal year, a marked slowing from8 percent per year during the preceding fiveyears. Although entitlements spending is stillincreasing steadily, agricultural support pay-ments and interest outlays have leveled off.Moreover, military spending has begun to re-spond to reductions in defense authorizationsand has slowed to about half its 1986 rate ofincrease. In addition, there has been continuedbudgetary restraint on discretionary domesticprograms. On balance, these developments haveheld down the growth of federal purchases,which account for about a third of total federalexpenditures; excluding changes in farm inven-tories held by the Commodity Credit Corpora-

tion, real federal purchases were little changedbetween the second quarter of 1986 and the firstquarter of this year.

Real purchases of goods and services by stateand local governments rose at a 4 percent annualrate in the first quarter of 1987, close to the briskpace of the past several years. The growth inoutlays continues to be boosted by efforts toupgrade basic infrastructures. This rise in spend-ing has outpaced growth in receipts, however,and the sector's combined operating and capitalaccounts (that is, excluding social insurancefunds) moved into deficit in the first quarter ofthis year. In many instances, a current deficitdocs not signal any fundamental financial prob-lem, as capital expenditures are financed throughbond issues. Nonetheless, a good many units areexperiencing a degree of difficulty, with oil-pro-ducing states under the most stress. Many statesare responding with plans to trim their generalfunds budgets; some arc considering tax in-creases or are planning to retain the extra re-ceipts generated by changes in federal tax laws.

Labor Markets

Employment accelerated early in 1987, and, de-spite a slowing in recent months, the averagemonthly increase in nonfarm payroll employmentof just over 200,000 so far this year exceeds thepace of hiring in 1986. The improvement in labordemand has been fairly broadly based. In manu-facturing, a two-year string of cutbacks in dura-ble goods industries ended late last year, andhiring picked up a bit in the nondurable goodssector. As a result, factory employment, overall,edged higher over the first six months of 1987. Inaddition, the number of jobs in oil and gasextraction stabilized after the sharp retrench-ment in 1986. At the same time, the expansion ofjobs in the trade, services, and finance industries,despite some recent slowing, remained sizable.

The combination of strong gains in employ-ment and declining numbers of unemployedworkers over the first half lowered the civilianjobless rate to 6'/4 percent on average in thesecond quarter from just under 7 percent at theend of last year. The rate for adult men (aged 25years and over), which had been stuck at around


5'/> percent from mid-1984 to late 1986, movedbelow 5 percent this spring; further improvementalso occurred for adult women, whose unem-ployment rate in the past year has moved belowthat of their male counterparts.

Despite falling unemployment, available mea-sures of labor compensation showed little sign ofacceleration early this year. Hourly compensa-tion, as measured by the employment cost index,rose 3.1 percent in the 12 months ending inMarch, the same as the year-ovcr-year changesin the second half of 1986 and down nearlythree-quarters of a percentage point from a yearearlier. A wide gap persisted between the size ofpay increases for white-collar workers and forthose in blue-collar occupations. Nonetheless,the slowing in wage inflation compared with ayear earlier was relatively widespread by indus-try and occupational group. An exception is theNortheast region, where wages showed no decel-eration in the year ending in March and increaseswere still outpacing those in other parts of thecountry by a sizable margin.

The moderation in hourly compensation in-creases has been the principal factor holdingdown labor costs, as productivity continues to bequite sluggish. After declining in the second halfof 1986, output per hour in the nonfarm businesssector rebounded in the first quarter of 1987, butremained little different from its year-earlierlevel. Since 1984, productivity gains in the non-farm business sector have averaged less than Ipercent per year. The trend has been much morefavorable in the manufacturing sector, wherefirms apparently have had some success in theirefforts to boost the efficiency of their productionprocesses; indeed, productivity gains in U.S.manufacturing between 1985 and 1986 out-stripped those recorded by other major industrialcountries.

Price De veto pin ents

As expected, inflation rates have been higher sofar this year, largely reflecting a rebound inenergy prices. The GNP fixed-weight price in-dex, a broad measure of inflation for goods andservices produced by the United States, in-creased at an annual rate of about 4 percent in the

first quarter; it had risen 21/? percent during 1986.Sharper accelerations occurred in the consumerprice index, which was up at a 5'/» percent rateover the first five months of the year, and in theproducer price index for finished goods, whichrose at a 4'/2 percent annual rate over the sixmonths ended in June.

The rebound in energy prices began in Janu-ary, when spot prices of crude oil jumped about$3 per barrel in response to the reductions inoutput to which OPEC had agreed late in Decem-ber. Higher crude oil costs were quickly passedon to end-users, and by May consumer prices forgasoline and fuel oil had risen about 15 percent,retracing half of last year's decline. Spot pricesof petroleum products moved up a bit furtherearly in the summer as inventories tightened, andthese increases were supported subsequently bythe renewal of OPEC's agreement to controlproduction.

In addition to the developments in energymarkets, the influence of a lower value of thedollar, as well as trade restrictions, on the pricesof imported goods became increasingly evidentat the retail level in the first part of this year. Thedockside prices of non-oil imports turned up in1986 after several years in which stable or declin-ing import prices had helped to restrain domesticinflation. Although price changes have variedconsiderably among different categories of im-ported goods, some of the largest increases havebeen reported for consumer commodities, in-cluding autos. Retail prices for a number of itemswith higher-than-average import proportions—such as apparel, footwear, and some other homegoods—have shown markedly faster increasesthan they did during the past several years.These increases contributed to a sharp accelera-tion in the consumer price index for goods otherthan food and energy between December andMay compared with 1986, while the rise in pricesof nonenergy services over the same period wasslightly less rapid than last year.

At the domestic producer level, prices of fin-ished consumer goods and capital equipmentother than food and energy rose at an annual rateof less than 2 percent over the first six months ofthe year. At earlier stages of processing, how-ever, prices of domestically produced intermedi-ate materials other than food and energy rose at

642 Federal Reserve Bulletin U August 1987

a 4 percent annual rate, after two years ofessentially no change. This acceleration reflecteda sharp rise in the prices of industrial chemicalsand some other petroleum-related materials aswell as increases in a number of other categories.

Prices of primary commodities other than pe-troleum also have increased so far in 1987. In theagricultural sector, crop prices have retracedpart of last year's decline, which occurred whenfarmers sold large amounts of the grain they hadreceived from the government in lieu of cashpayments. Prices of cattle and hogs also were upmarkedly into the spring, but, with suppliesimproving, cattle prices have retraced much oftheir advance, and hog futures prices point todeclines later this year. Prices of industrial ma-terials, with the exception of a brief period earlythis year, have been rising fairly steadily sincethe early autumn of 1986. Spot prices for pre-cious metals have been particularly sensitive todevelopments in foreign exchange markets andrenewed market concerns about inflation; afterclimbing sharply into May, they fell back a bitwith the subsequent firming of the dollar.

M ONE LAKY POLICY AND I-'INANCIM.MARKETS IN THE FIRST HALE OE I9H7

The Federal Open Market Committee at its meet-ing in February established 1987 target ranges,measured from the fourth quarter of 1986 to thefourth quarter of 1987, of 51/: to Wi percent forboth M2 and M3. It also set a 1987 monitoringrange for domestic nonfinancial debt of 8 to 11percent. The M2 and M3 ranges represented areduction of Vz percentage point from last year'starget ranges, and the Committee expectedgrowth to be well within the ranges, especially inthe absence of dramatic movements in interestrates. The range for debt was unchanged from1986 but below the actual outcome in that yearand other recent years; thus, the Committeeanticipated that debt growth also would slow thisyear.

The Committee viewed a substantial slowing inmoney and credit growth from the rapid pace of1986 as likely to be consistent with continuationof sustainable economic expansion and condu-cive to further progress over time toward reason-

able price stability. Growth of Ml also wasexpected to moderate considerably this year.However, the Committee in February elected notto set a target range for Ml for 1987 because ofthe continuing uncertainties about the relation-ship of this aggregate to the economy. Theseuncertainties partly reflected the substantial sen-sitivity of its velocity to changes in financialconditions that had been evident in recent years,capped by a record postwar decline in the veloc-ity of Ml over 1986. Instead, the FOMC decidedto continue evaluating movements in this aggre-gate in light of the behavior of its velocity, therate of economic expansion, inflationary pres-sures, and developments in financial markets.

Over the first half of 1987, monetary policywas conducted against a backdrop of heightenedconcerns about inflation, stimulated in part bysubstantial downward pressure on the dollar inforeign exchange markets. At the same time,growth of money and credit aggregates moder-ated considerably and the velocities of thebroader monetary aggregates turned upward af-ter several years of rapid money growth andfalling velocities. Measured from the fourth quar-ter of 1986, M2 in June was below the lower endof its target growth range, while M3 was aroundthe lower end of its range. Meanwhile, growth inM1 slowed to a VA percent pace and debt expan-sion moderated to a 914 percent rate. As pres-sures on the dollar and inflation worries intensi-fied in April and May, interest rates began to risesubstantially, especially in long-term markets. Inlate April and May, the Federal Reserve adopteda somewhat less accommodative stance withrespect to the provision of reserves through openmarket operations. These actions, together withmonetary easing moves by key industrial tradingpartners, helped to stabilize the dollar and calminflation fears, contributing to some decline inlong-term interest rates and strengthening of thedollar.

Money, Credit, and Monetary Policy

In its conduct of policy thus far this year, theFederal Reserve has given a good deal of weightto a number of considerations in addition to themonetary aggregates—principally recurrent epi-


Growth of money and creditPercentage changes at annual rates

Period

Fourth quarter to fourth quarter197919801981198219831984 . '.19851986

Fourth quarter 1986 to June 1987

Quarterly average1986:1

234

1987:12

Ml

7.97.35.1(2.4)'8.6

10.25.4

12.115.3

9.9

7.7

8.815.516.517.013.16.4

M2

8.28.99.39.1

12.17.98.88.9

4.5

4.0

5.39,4

10.69.26.32.5

M3

10.49.6

12.39.99.8

10.77.78.8

5.3

5.3

7.7879.78.06.34.1

Domesticnonfinancialsector debt

12.29.69.98.9

11.513.913.413.2

9.8'

9.8'

15.510 212.512.110.49.0'

1. Ml figure in parentheses is adjusted for shifts to NOW accountsin 1981.

sodes of heavy downward pressure on the dollar,indications from long-term securities and com-modity markets of heightened inflation expecta-tions, and evidence that the economy continuedto advance at a pace sufficient to produce risinglevels of resource utilization, Under these cir-cumstances, interest rates tended to movehigher, and the patterns of rapid money growthand declining velocities of the last several years,when inflation and interest rates were movingdown, began to be reversed. Growth of the broadaggregates remained around the lower bounds oftheir growth cones through most of the first halfof the year, although M2 dropped well below itslong-run range later in the period. Growth of bothM2 and M3 was considerably below the pace ofrecent years, and their velocities increased. Ex-pansion of Ml also slowed markedly, whilegrowth of domestic nonfinancial sector debtmoderated.

Through the early spring of this year, Systemopen market operations were conducted to keeppressures on the reserve positions of depositoryinstitutions unchanged from last year. In Janu-ary, the strong credit and money demands asso-ciated with a burst of tax-related financial activ-ity in late 1986 began to abate, and short-terminterest rates eased; however, these rates re-mained above levels prevailing in the fall of lastyear.

e estimated

In foreign exchange markets, the dollar hadbegun to decline in late December, after a periodof some stability. The drop continued throughJanuary, amid market concerns about the pros-pects for correcting U.S. and foreign externalimbalances. In late February, the statement inParis by the ministers of finance and central bankgovernors of six major industrial countries thatthey "agreed to cooperate closely to foster sta-bility of exchange rates around current levels,"along with a cut in the discount rate by the Bankof Japan, seemed to stabilize the dollar for atime.

The spread between private short-term ratesand Treasury bill rates widened after Brazil an-nounced a suspension of interest payments tobanks in February, and subsequently widenedfurther as the Treasury's paydown of bills, whichbegan early in the year, picked up and foreignofficial institutions purchased bills with the pro-ceeds of dollars acquired in exchange marketintervention. Reflecting the somewhat higher pri-vate short-term interest rates and concomitantincreases in funding costs, commercial banksraised the prime rate by VA percentage point onApril 1.

Long-term rates, which had not been muchaffected by the transitory credit demands of late1986, continued to drift down in the early monthsof 1987, displaying little short-term volatility.


The placid conditions in long-term markets wereabruptly changed in late March, primarily bydevelopments in the international sphere. An-nouncements of trade sanctions by the UnitedStates, persisting weakness of the dollar, anddisappointing trade figures all raised questionsabout continuing private demands for dollar as-sets, prospects for inflation, and the response ofmonetary policy. The dollar dropped sharply inthe last three weeks of March, and between lateMarch and late April, yields on 30-year govern-ment bonds rose about I percentage point onbalance. The exchange and bond markets be-came highly volatile during this period, as thedollar continued to drop and inflation fears ap-peared to be intensified by the publication ofadverse price data. Mortgage rates and yields onmortgage pass-through securities reacted verypromptly to the deterioration in the bond marketsand, indeed, rose more than most other long-term rates as many investors shied away fromthese instruments subject to substantial prepay-ment risk.

The effects of these developments also wereevident in short-term credit markets, where ratesrose in April partly in anticipation that monetarypolicy would have to firm to contain pressures onprices and the dollar. In late April and again inMay, the Federal Reserve did move to tightenthe availability of nonborrowed reserves throughopen market operations. Short-term interestrates rose about Vz to V* percentage point duringApril and May, and the prime rate was raisedtwice more, on May 1 and May 15, in quarter-point increments. The System's firming actions,along with complementary moves abroad, helpedto stabilize the dollar and ameliorate the con-cerns about the inflation outlook.

Along with some better price news and evi-dence of improvement in our trade deficit, thispolicy appeared to impart an improved tone toshort-term and, especially, long-term credit mar-kets over the latter part of May and June. SinceMay, most short-term rates have posted declinesof VA percentage point or more. Longer-term mar-kets generally have registered greater gains, andin early July long rates were off Vi to VA percentagepoint from their May highs. The dollar, mean-while, has shown more dramatic improvement,regaining the ground it lost in April and May.

As interest rate incentives favoring market

instruments over monetary assets became morepronounced in the first half of the year, growth ofthe monetary aggregates slowed. M2 deceleratedin both quarters, expanding at an annual rate ofonly 2'/2 percent in the March-to-Junc period. Inaddition to the influence of rising interest rates,tax reform may have weakened the public'sdemand for M2 assets, particularly household-type deposits, to the extent that it induced indi-viduals to pay down consumer debt or to financeexpenditures out of liquid assets rather than withcredit. The velocity of M2 is estimated to haverisen in the first and second quarters, after de-clining in 1985 and 1986.

The slowing of M2 growth was accompaniedby a marked change in the composition of depositinflows away from transactions and other highlyliquid instruments and toward longer-term retaildeposits. This reversal of the pattern of portfolioshifts in 1985 and 1986 occurred as rates on timedeposits adjusted more promptly to rising marketrales than did yields on more liquid monetarycomponents, and the deposit rate curve steep-ened.

Growth in transactions instruments fell in thefirst half to a pace not seen since 1984, the lasttime interest rates rose on a sustained basis.Demand deposits, along with other checkabledeposits (OCDs), were boosted smartly in Aprilas individuals prepared to pay tax liabilities,which were swollen by capital gains taken in 1986to avoid higher rates under tax reform. On bal-ance, however, demand deposits have exhibitedno sustained strength since late last summer.Among other factors, the rise in interest ratesreduced the volume of demand deposits thatbusinesses need to hold as compensating bal-ances for bank services. As rates on time depos-its and market instruments rose, OCDs became aless attractive savings vehicle. The progressiveslowing this year of OCD growth, which hadaveraged close to 30 percent during most of1986, was interrupted only by the April surge.With demand deposits and OCDs both runningoff in June, growth in Ml for the second quarterwas down to a 6V2 percent rate. The velocity ofM1 in the second quarter is estimated to havechanged little, after declining in each quartersince 1984.

Growth in other liquid balances also has beenfalling. Savings deposits, after expanding at a


rate of around 30 percent since the late summerof last year, slowed in the second quarter andadvanced at a rate of only 10 percent in June, andmoney market deposit accounts have been par-ticularly weak this year. By contrast, small timedeposits, which had run off over much of lastyear in an environment of falling short-termrates, expanded significantly in June for the firsttime since April 1986. Growth in small timedeposits this year has been especially strong atthrift institutions, reflecting elevated offeringrates and, in certain cases, a shift to deposits indenominations of under $100,000, as some ofthese institutions have encountered difficulties inissuing large time deposits.

Even with weak inflows to core deposits, theneed among commercial banks to tap wholesalemanaged liabilities was limited by a moderationin demands for credit. M3 growth was furtherdamped in the first half as banks obtained fundsfrom sources not encompassed by the monetaryaggregates, including borrowing from their for-eign branches and a sharp rise in Treasury de-posits. Federal Home Loan Bank advances tothrifts also were strong, although below the paceof last year. Growth of M3 fell below that ofincome in the first half, and M3 velocity appar-ently rose in both quarters, the first sustainedincrease in three years.

Credit flows were reduced in the first half of1987, with total domestic nonfinancial sectordebt expanding at an annual rate of around 9-V4percent, compared with rates in excess of 13percent in each of the preceding three years.Even so, expansion of both the private andpublic components of the debt aggregate contin-ued to outstrip the growth of income, as gener-ally has been the case in the 1980s.

Overall business credit demands continued tobe buoyed in the first half by heavy net retire-ments of shares associated with mergers, buy-outs, and other corporate restructurings. Withlong-term rates subdued in the first three monthsof the year, firms concentrated their borrowingsin bond markets and short-term business creditcontracted. However, as long-term markets de-teriorated in April, bond issuance abated andbusiness credit demands focused on the commer-cial paper market. By June, with some improve-ment in long-term markets, these financing pat-terns reversed again as bond issuance picked up

and growth of short-term business credit came toa halt.

Growth of consumer installment credit wasconsiderably diminished during the first half. Thereduced deductibility of consumer interest pay-ments under the new tax code encouraged thisdevelopment. The tax law change made the useof mortgage credit relatively more attractive, andthe active promotion by lenders of home equitylines of credit reinforced tendencies toward sub-stitution. In addition to credit taken down underhome equity lines, mortgage growth in the firsthalf was maintained by heavy volumes of newand existing home sales.

Federal government credit needs in the firsthalf were held down by unusually strong taxpayments stemming from the retroactive repealof the investment tax credit and, principally,from the capital gains realized late last year. Thebudget showed a small surplus in the April-to-June period, after a $59 billion deficit in the firstquarter. Net borrowing from the public neverthe-less rose in the second quarter on a seasonallyadjusted basis as the Treasury replenished itscash balances, which had been drawn downsharply in the initial months of the year. TheTreasury ran off bills in both quarters but contin-ued to issue coupon securities in volume. Federaldebt expanded at a 93/t percent annual rate inthe first half of the year, down from the pace of1986.

Borrowing by state and local governments hasfallen off this year. Issuance of municipal debt fornew capital has been slowed considerably byprovisions of tax reform that narrowed the defi-nition of public-purpose debt and constrainedprivate-purpose offerings. In addition, issuanceof refunding bonds, which was strong in the firstquarter, slackened after April because of higherinterest rates.

The financial system has continued to evidencestrains in 1987. Indications that the agriculturalsector is beginning to stabilize have emerged,with loan delinquencies declining, land pricesbottoming out, and export volume firming; thefailure rate among agricultural banks seemslikely to have peaked. However, the Farm CreditSystem, the nation's largest farm lender, lostconsiderable sums in 1985 and 1986, and many ofits units continue to struggle with troubled loanportfolios.

646 Federal Reserve Bulletin D August 1987

In addition to difficulties with agriculturalloans, commercial banks have been saddled withpersisting problems in their energy and dcvclop-ing-country loan portfolios. Although somebanks remain highly profitable, 19 percent lostmoney last year, compared with about 3 percentas the decade began; loan-loss provisions werethe main cause of the earnings problems. Thebanking system is likely to post record losses thisyear owing to huge reserve provisions taken bylarge banks primarily as a consequence of devel-opments in the international debt area. Despitethe shrinkage in the book value of shareholderequity recognized by these actions, share pricesrose at many banks that announced large in-creases in loan-loss reserves.

Net operating income before taxes for solventthrift institutions rose last year as interest mar-gins widened with falling market rates, and thriftsoverall have raised their ratio of net worth tototal assets by taking advantage of strong stockprices to issue large volumes of equity. Nonethe-less, at a significant minority of thrifts, alreadynegative net worth positions have been aggra-

vated by continued losses. Moreover, the prob-lems of some troubled institutions intensified thisyear as the real estate market in certain areas ofthe country remained depressed and interestrates backed up.

The difficulties of the thrift industry are mir-rored in the situation of the Federal Savings andLoan Insurance Corporation. Fstimatcs indicatethat current and potential claims against theFSLIC exceed its reserves by significantamounts. With premiums levied on member in-stitutions already at a statutory maximum, someaction clearly is called for to strengthen theFSLIC and bolster its ability to deal with prob-lem institutions. Plans currently under study bythe Congress would involve using retained earn-ings from the Federal Home Loan Banks tocapitalize a financing corporation that, in turn,would issue obligations and invest the proceedsin FSLIC capital stock. At this stage, these planscall for a maximum capacity to issue debt of $8'/2billion. This would be repaid over an extendedperiod of time through FSLIC assessments onmember institutions.

Industrial Production

647

Released for publication June 16

Industrial production increased an estimated 0.5percent in May, while the level of output in eachof the preceding three months was revised up-ward. In May, gains in output were widespreadamong products and materials. At 127.8 percentof the 1977 average, the total index for May was2.9 percent higher than that of a year earlier.

In market groups, output of consumer goodsincreased 0.6 percent in May following a declineof 0.8 percent in April. Auto production was offslightly in May, but output of lightweight trucksas well as that of home goods and nondurableconsumer goods increased during the month.Auto assemblies were trimmed further in May toan annual rate of 7.1 million units, but stillexceeded sales for May; industry schedules for

140

120

100

80

60

TOTAL INDEX

1 1

MANUFACTURING

"~ CONSUMER GOODS

1

MOTOR VEHICLES

—

A A/1 (

r—' "

I i

Durable ^ _ ^ ^ _

Nondurable

1 1

Nondurable^_ >~~r-*

• / - . ^ ^ _ - . ~ - •ry~

Durable

AND PARTS

-

1

-

1

-

•

-

-

-

Ratio scale, 1977 = 100

140

120

- 100

80

140

120

- 100

1981 1983 1985 1987

All data are seasonally adjusted. Latest figures: May.

- 160

- 140

120

100

- 80

Products

MATERIALS Durable

Nondurable -^^r • -

Energy

INTERMEDIATE PRODUCTS

Business supplies

— Construction supplies

J_

FINAL PRODUCTS

Defense and space

Consumer goods

240

200

160

140

20

100

1981 1983 1985 1987

648

Group

Total industrial production

Products, totalFinal products

Consumer goodsDurableNondurable

Business equipmentDefense and space

Intermediate productsConstruction supplies

Materials

Manufacturing.DurableNondurable .

MiningUtilities

1977 = 100

1987

Apr. May

127.2

135.6134.4126.6118.4129.6140.4186.5140.0127.9115.6

132.0129.8135.196.5

110.4

127.8

136.5135.2127.4119.4130.3141.2187.4140.7128.6116.0

132.7130.4135.996.3

111.9

Jan.

-.1.0

- . 4- 1 . 2- . 1

.7- . 3- . 4

3.0

.1- . 1

.35

-1.0

Percentage change from preceding month

1987

Feb. Mar.

Major market groups

.91.0.6

2.0.2

1.9.7.4.1.0

.0

.1

.0

.0- . 6

.3- . 1

.0

.3.1

- . 1

Major industry groups

.71.1.1

-1 .0.1

.1

.1

.2

.2- . 3

Apr.

- . 1

- . 4- . 5- . 8

- 2.6

- ! l- . 1- . 1- . 5

.4

- . 2- . 6

.4

.11.1

May

.6

.6

.6

.8

.6

.5

.5

.5.5.4

.5

.5

.6- . 21.4

Percentagechange,

May 1986to May

1987

2.9

3.12.82.54.91.72.45.34.24.22.7

3.5274.6

-3.53.1

Noli;. Indexes are seasonally adjusted.

June production show a further small decline.Production of business equipment was up inMay, continuing the overall improvement thatbegan in January, particularly in the output ofmanufacturing and commercial equipment.

After almost no change in both March andApril, output of defense equipment increased inMay, bringing production to a level about 5percent higher than that of a year earlier. Output

Total industrial production—RevisionsEstimates as shown last month and current estimates

Month

FebruaryMarch

May

Index (1977-1(1(1)

Previous

127.1126.8126.3ii.a.

Current

127.2127.3127.2127.8

Percentage changefrom previous

months

Previous Current

.4 .5-.2 .0-.4 -.1

n.a. .5

n.a.—Not applicable.

of both construction and business supplies in-creased half a percent in May but has shown, onbalance, only small gains since the beginning ofthe year. Total materials production rose 0.4percent following a similar gain (upward revised)in April. Among durable materials, output ofmetals and equipment parts increased in May;nondurable materials, such as chemicals andpaper, also rose. Output of energy materials,although relatively strong in May due largely toincreased electricity generation, remained belowyear-earlier levels.

In industry groups, total manufacturing outputincreased 0.5 percent in May following a declineof 0.2 percent in April, which occurred mainly indurables. In May, the durable manufacturingsector almost regained March levels; nondurablemanufacturing, with a gain of 0.6 percent in Mayfollowing a revised rise of 0.4 percent in April,surpassed the March level considerably. Miningoutput edged down in May, but production byutilities was up sharply.

649

Statement to Congress

Statement by Manuel H. Johnson, Vice Chair-man, Board of Governors of the Federal ReserveSystem, before the Subcommittee on FinancialInstitutions Supervision, Regulation and Insur-ance of the Committee on Banking, Finance andUrban Affairs, U.S. House of Representatives,June 9, 1987.

I am pleased to appear on behalf of the FederalReserve Board to offer additional testimony onthe issue of money laundering. The FederalReserve has a strong commitment to implement-ing appropriate policies to ensure compliancewith laws enacted to eliminate money launder-ing.

My goal today is to more fully inform thecommittee of efforts by myself and by the staff topress for greater international cooperation bybank supervisors in addressing the use of bank-ing organizations to launder money. In addition,the committee has asked that I give a statusreport on the studies required under the Anti-Drug Abuse Act of 1986 and that I address thesubject of bank fraud and insider dealing. Final-ly, I will provide further information on theFederal Reserve's supervisory efforts to ensurecompliance with the Bank Secrecy Act and otherlaws to discourage the use of banks and thepayments system generally for laundering mon-ey.

INTERNATIONAL COOPERATION

The Federal Reserve shares the concerns of thiscommittee and believes that the effectiveness ofefforts to discourage money laundering could befurther enhanced by initiatives on an internation-al level. For the past year, the Federal Reserve,together with the other federal banking agencies,has worked to secure the cooperation of banksupervisory authorities in other countries of theworld. Discussions have been held among mem-bers of the Basle Committee on Bank Regulation

and Supervisory Practices with the goal of ob-taining a consensus on how best to proceed withefforts to discourage criminal elements from us-ing the international payments system for thepurpose of laundering money.1 The subject wasfirst raised with the Basle Committee in a meet-ing in Washington last June. Although all mem-bers of the committee were clear in their viewthat abuse of the banking system in the form ofcurrency laundering was a serious matter, manymembers felt that the primary responsibility formonitoring and detecting this activity restedlargely with law enforcement authorities. None-theless, the committee agreed that the subjectshould be reviewed, and at the December 1986meeting the U.S. delegation agreed to draft apaper outlining the issue and making recommen-dations.

In addition, this paper will propose rules ofconduct that could be utilized by banks in anycountry to discourage the use of the paymentssystem for illegal transactions. In constructingthis proposal, we have consulted with othercountries for the purpose of incorporating theirideas as well as seeking their support of a moreactive role for bank supervisors. We expect thatin the next few weeks a draft of an initialproposal will be ready for review by the BasleCommittee, and we are attempting to put theitem on the committee agenda for the regularmeeting later this month. We recognize thatencouraging foreign supervisors to endorse theconcept that international banks should adopt acode of conduct falls short of the extensivecurrency reporting requirements in place in theUnited States; however, we are hopeful that this

1. The Basle Committee was established at the end of 1974by the central bank governors of the Group of Ten industra-lized countries with the objective of strengthening collabora-tion among national authorities in their prudential supervisionof international banking. The committee, whose members areofficials of the central banks and supervisory agencies, meetsthree times a year at the Bank for International Settlements inBasle, Switzerland.

650 Federal Reserve Bulletin • August 1987

effort, in combination with the activities of ourfederal law enforcement authorities, will make ameaningful contribution toward inhibiting theuse of the banking system for illicit money laun-dering.

Attempts to eliminate money launderingthrough legislation are, of course, not confined tothe United States. Recently, Switzerland, forexample, has proposed laws designed to makemoney laundering a crime. It is our hope thatother countries will follow suit. The proposedrules of conduct to which I have just referredendorse the concept that bank supervisory au-thorities should support legislation that wouldmake money laundering a crime.

Federal Reserve efforts to encourage interna-tional cooperation in this area will not be limitedto the Basle Committee. We intend to discussthis issue when appropriate at formal and infor-mal meetings with foreign bank supervisory au-thorities. It is our hope, however, that the workgoing on in the Basle Supervisors' Committeewill serve as the principal vehicle for advancingeffective constraints on the involvement of inter-national banking institutions in money launder-ing activities.

INTERNATIONAL STUDIES

The Anti-Drug Abuse Act of 1986 requires thattwo studies be conducted and furnished to thiscommittee. Both of these studies are being pre-pared under the auspices of the Department ofthe Treasury in consultation with the Board ofGovernors. The Justice Department is also tocontribute to one of the studies.

The first study deals with the results of discus-sions with central banks and other appropriategovernmental authorities concerning the estab-lishment of arrangements to facilitate the flow ofinformation among supervisory authoritiesthroughout the world. The flow of informationamong international supervisors is particularlyimportant, and the Federal Reserve is discussingwith international authorities the need to im-prove communications and information-sharingprocedures to strengthen supervisory activitiesvis-a-vis international banking organizations. Weexpect to be able to provide the Treasury withthe results of our discussions in sufficient time toensure a timely response to this committee.

The other study requires that information befurnished to this committee on the following: (1)the extent to which foreign branches of domesticinstitutions are used to facilitate illicit transfersof currency and other monetary instruments orto evade reporting requirements; (2) the extent towhich U.S. law is applicable to the activities ofsuch foreign branches; and (3) methods for ob-taining the cooperation of foreign countries forthe purpose of enforcing money laundering lawsand currency reporting requirements. The Feder-al Reserve and the Comptroller of the Currencywere asked to assist the Treasury on sections 2and 3 of the study. While we arc still in theprocess of developing materials to provide to theTreasury, we expect that the study will be com-pleted within the committee's requested timeframe.

BANK FRAUD AND INSIDER DEAEING

I would now like to turn to the subject of bankfraud and insider dealings. Experience has dem-onstrated that insider abuse and misconduct, aswell as criminal activities, arc among the factorscontributing to bank failures. Data provided tothe Department of Justice and the Federal Bu-reau of Investigation (FBI) confirm that criminalmisconduct, such as fraud and embezzlement, isa serious problem. For example, the FBI recent-ly reported that in 1985 it worked on 6,373 bankfraud and embezzlement cases—one-third ofwhich involved amounts exceeding $100,000. In1986, this number rose to 7,286—with a corre-sponding increase in the number of cases involv-ing more than $100,000. The FBI reports that in1985 the amount of reported dollar losses be-cause of bank fraud and embezzlement totaledabout $850 million; in 1986, this total increased tomore than $1.1 billion.

Over the past several years, the Federal Re-serve by itself, and in conjunction with the otherfederal banking and law enforcement agencies,has taken a number of steps to address bankfraud and insider abuse. A major part of thiseffort relates to our involvement in the Interagen-cy Bank Fraud Enforcement Working Group (the"Working Group") that was formed in April1985. The Working Group is comprised of offi-cials from all of the federal financial institution

Statement to Congress 651

regulator agencies, the Justice Department, andthe FBI. The principal results of the WorkingGroup's efforts over the past two years includethe following:

• The Working Group developed and imple-mented a uniform criminal referral form to beused by all banks, bank holding companies,savings and loan institutions, and credit unions.

• The Department of Justice developed andimplemented a "significant referral" trackingsystem. For this purpose, a criminal referral isconsidered "significant" if the dollar amount ofthe suspected violation exceeds $200,000, thesuspected offense involves insider abuse by sen-ior officials, or the violation involves, in theopinion of Board staff, activities or practices thataffect the integrity of the supervisory process orotherwise have nationwide implications. Eachsignificant referral received by the Federal Re-serve System is forwarded to the Fraud Sectionof the Department of Justice for tracking andspecial attention.

• As a complement to these efforts, the En-forcement Section of the Board's Division ofBanking Supervision and Regulation developedand implemented an automated system to moni-tor and track all of the Federal Reserve criminalreferrals. Complete access to the Board's crimi-nal referral recordkeeping system is available toall the agencies comprising the Working Group.

• The members of the Working Group devel-oped and distributed lists of key persons to becontacted at the local FBI offices, U.S. Attor-ney's offices, Federal Reserve Banks, and alldistrict offices of the Comptroller of the Curren-cy, the Federal Deposit Insurance Corporation,and the Federal Home Loan Bank Board onmatters relating to criminal referrals and bank-related insider abuse and fraud. These lists pro-vide important information for the staffs of theagencies that are reponsible for criminal referraland follow-up.

• The examiner training programs sponsoredby the Federal Financial Institutions Examina-tion Council have been expanded to includeextensive instruction in the detection and investi-gation of insider abuse and misconduct withinfinancial institutions. In addition, the membersof the Working Group jointly sponsor white-collar crime seminars with the FBI.

• At the urging of the Working Group, the

Attorney General called upon each U.S. attorneyto intensify his or her efforts in bank fraudenforcement. In a memorandum distributed inFebruary 1987, the Attorney General asked allU.S. attorneys to prepare inventories of bankfraud cases involving more than $100,000 that arepending prosecutive decision or action, to makeprompt prosecutive determinations in those cas-es ready for decision, and to assign the neededpersonnel to complete the investigation of opencases with the goal of indictment or declinationwithin nine months.

As part of this overall effort, the FederalReserve Board has attempted to improve itscommunication and coordination with the en-forcement agencies in this all-important area. Ibelieve that we have made considerable progressin strengthening our working relationships withthe Department of Justice and the FBI at boththe federal and the local levels. There is alsonow, I believe, a better mutual understanding ofthe procedures and responsibilities of the federalfinancial institution supervisory agencies and thefederal law enforcement agencies.

Besides these interagency efforts, the Boardhas sought to enhance its supervisory and en-forcement activities regarding insider abuse andmisconduct. This effort is reflected in an increasein the number of formal enforcement actionstaken by the Board. In the period 1981-82, theFederal Reserve System averaged 42 enforce-ment actions per year; from 1984-86, the averagenumber of enforcement actions had increased to177. These figures include actions against statemember banks, bank holding companies, andEdge act corporations. Moreover, during thisperiod, there has been a significant increase inthe number of enforcement orders addressingimproper or abusive actions of bank officials.This increase in enforcement actions has oc-curred across the Board—involving civil moneypenalties and fines, cease and desist orders, andsuspension and removal proceedings against offi-cers and directors.

Board staff members are also working withtheir counterparts at the other federal financialinstitution regulatory agencies to develop a jointlegislative proposal for amending the agencies'enforcement statutes. The purpose of the pro-posal would be to clarify the agencies' authorityto obtain reimbursement from individuals who


violate applicable banking laws; broaden theagencies' powers to issue cease and desist or-ders; strengthen removal procedures; and codifyexisting interpretations of the Right to FinancialPrivacy Act. We believe that these changeswould strengthen the agencies' ability to addressbank fraud and insider dealings, and it is ourhope that a proposal will be ready soon forreferral to the Congress.

DOMESTIC REGULATORY ACTIVITIES

To conclude my testimony, let me describe therange of our domestic activities to fight moneylaundering in U.S. banks. First, the FederalReserve provides monthly reports on currencyflows for several government agencies. Thesereports supply data on currency sent into and outof each of the 37 Federal Reserve offices. Thepurpose of the report is to establish paymentpatterns throughout the United States so thatmarked deviations in normal patterns can beidentified and enforcement resources more effi-ciently deployed.

In addition, Federal Reserve Banks providecurrency, shipping, and receiving data to govern-ment agencies covering cash flows between theFederal Reserve and a particular depository in-stitution that is ordering or depositing cash. Thatinformation is useful also in establishing markeddeviations in normal depositing and orderingpatterns. The Federal Reserve is fully coopera-tive in responding to any requests for data of thistype.

EXAMINATIONS

The Board believes that the most effective wayto ensure that banks are meeting the recordkeep-ing and reporting requirements of the Bank Se-crecy Act is to conduct on-site examinations.The Federal Reserve has developed detailedexamination procedures in this area and has heldspecial training sessions for examiners as well asfor bankers. It is our policy to review compliancewith the Bank Secrecy Act at each examinationof a state member bank or Edge act corporation.In 1986, 844 such examinations were conducted,and through the first quarter of 1987 an additional

227 examinations were completed. The numberand intensity of our reviews of currency report-ing requirements have increased steadily in thepast five years.

During the period covered by these examina-tions, deficiencies were discovered in 256 banks.These deficiencies included failure to file curren-cy transaction reports, filing incomplete or inac-curate currency transaction reports, impropermaintenance of exemption lists, and poor record-keeping practices. In all cases, the banks havebeen required to initiate corrective action and in16 cases the violations resulted in our forwardingdetails to the Justice Department for furtherreview. Of course, as a matter of policy, everyviolation is reported to the Department of Trea-sury on a quarterly basis.

While considerable effort has been expendedin recent years to ensure that adequate and in-depth examinations are being conducted, theFederal Reserve reviews on a regular basis itspractices and procedures in an effort to strength-en its oversight activities. In addition, as alreadynoted, the Federal Reserve actively participatesin the Bank Secrecy Act Interagency WorkingGroup that is chaired by the Treasury Depart-ment. This working group has developed newprocedures that arc designed to assist in detect-ing violations of law. These procedures arc cur-rently in the process of being integrated into ourexamination instructions.

REGULATION

Pursuant to the Anti-Drug Abuse Act of 1986, thefederal banking agencies have developed regula-tions that require banks to establish and maintainprocedures to ensure compliance with the BankSecrecy Act. The Federal Reserve published itsregulations for this purpose as amendments toRegulation H on January 27, 1987. These amend-ments require banks to implement a writtenprogram that must be approved by the bank'sdirectors to assure compliance with the record-keeping and reporting requirements of the BankSecrecy Act. The compliance program must, at aminimum, include four elements: (1) a system ofinternal controls; (2) independent testing forcompliance; (3) designation of individual(s) to beresponsible for compliance; and (4) appropriatetraining of employees.

Statement to Congress 653

Noncompliance with this regulation will resultin the issuance of a cease and desist order.Although no such orders have yet been issuedbased on this recently published regulation, theBoard has included requirements to strengthencompliance with the Bank Secrecy Act in otherformal supervisory actions. Between 1980 and1986, the Board or the Reserve Banks enteredinto 165 enforcement orders or agreements withstate member banks. Provisions requiring cor-rective action relative to the Bank Secrecy Actwere included in 25 of these enforcement orders.

INDUSTRY EDUCATION

Besides focusing on strengthening regulationsand examining procedures, efforts have beendirected at educating banks and the public on therequirements of the Bank Secrecy Act and onFederal Reserve policies and procedures regard-ing currency reporting. Board staff membershave participated in seminars and programs in-tended to educate bankers about the Bank Secre-cy Act, especially as it relates to the RegulationH amendments and the requirements for curren-cy reporting. We believe that these seminarshave been particularly helpful and have achieveda substantial degree of participation among bankmanagers and compliance personnel. Regionalprograms conducted through our District bankshave also provided opportunities for bank com-pliance officers to discuss issues and to askquestions relating to the Bank Secrecy Act.

To provide assistance and guidance for statemember banks in developing compliance pro-grams, the Federal Reserve has developed andissued guidelines and sample documentation.These materials have been widely distributedand, we understand, have been particularly use-ful to banking organizations in developing com-pliance programs.

APPLICATIONS

Any banking organization or bank holding com-pany making application to the Federal Reservereceives a careful scrutiny to determine whetherthe organization is in compliance with the cur-rency recordkeeping and reporting requirements

of the Bank Secrecy Act. When violations exist,procedures require that a thorough analysis beperformed that looks carefully at the nature ofthe violations, efforts taken by the Bank to curethe deficiencies, and procedures developed toprevent any future occurrence. Applicants arerequired to provide detailed responses on thecause of the violations and to submit copies oftheir compliance programs, and procedures, andtheir related internal audit reports. Normal proc-essing of any application is suspended until allquestions relating to Bank Secrecy Act compli-ance are fully resolved. From the beginning of1985 through May 1987, 125 applications in-volved issues relating to Bank Secrecy Act com-pliance. In 25 of these cases, resolution of thecompliance problems resulted in a delay in theprocessing of the application beyond the normal60-day period.

Those cases that involve serious issues ofnoncompliance and that cannot be resolved byfurnishing additional information may require aspecial examination. These examinations areconducted either by the Federal Reserve or bythe regulatory agency responsible for the pri-mary supervision of the applicant banking orga-nization. No action is taken on any applicationuntil satisfactory compliance is demonstratedand any associated issues are resolved. An ongo-ing investigation by any law enforcement agen-cy, would also suspend processing of the applica-tion.

CONCLUSIONS

The Federal Reserve shares this committee'sconcern that banking organizations not be usedto launder funds or participate in other illegal orimproper activities. To this end, we have devot-ed considerable effort and resources to monitorcompliance of state member banks with the BankSecrecy Act and the Anti-Drug Abuse Act of1986. We have tightened our examination proce-dures, put in place policies for carefully review-ing a bank's compliance record at the time anapplication is made, and taken steps to ensurethat criminal referrals are made in a timelyfashion with appropriate follow-up. The FederalReserve has also contributed to banker educa-tional programs and provided guidance to bank-


ing organizations for complying with the BankSecrecy Act. Finally, we are pursuing coopera-tive efforts on the international level that wehope will heighten awareness of the need tostrengthen supervisory and enforcement activi-ties worldwide.

Despite these intense efforts, we recognize

that we must remain vigilant and continue ourefforts to improve compliance with the BankSecrecy Act. The Federal Reserve intends tocontinue to place strong emphasis on its over-sight responsibilities for Bank Secrecy Act com-pliance and to contribute fully to efforts to elimi-nate money laundering. •

Announcements

655

STATEMENT BY CHAIRMAN VOLCKER ONTHE DEATH OF ARTHUR F. BURNS

Paul A. Volcker, Chairman of the Federal Re-serve Board, issued on June 26, 1987, the follow-ing statement on the passing of Arthur F. Burns:

Arthur Burns was a staunch supporter of the Feder-al Reserve as an institution and a firm friend of manyof us within it. We have enormously benefited fromboth that support and that friendship. He will behonored in our memory.

Arthur first came to the Federal Reserve in 1970 asChairman of the Board of Governors. He was then atan age that, for most men, might be considered anormal time for retirement. He had great vigor andbrought to his new position force of personality,intellectual vigor, and physical endurance that had aprofound influence throughout the institution and onU.S. economic policy for eight years.

Arthur without doubt saw those active "Fed" yearsas a culmination of a career already distinguished bypromising studies of the business cycle, by largecontributions to the teaching and the profession ofeconomics at Columbia University and the NationalBureau of Economic Research, and by public serviceas President Eisenhower's first Chairman of the Coun-cil of Economic Advisers, and as Counselor to Presi-dent Nixon, whom he had long advised informally. Itwas a measure of the breadth and strength of the manthat in his mid-70s he took on a key diplomaticassignment, serving with great distinction as Ambassa-dor to the Federal Republic of Germany.

MEETING OF CONSUMER ADVISORYCOUNCIL

The Federal Reserve Board announced that itsConsumer Advisory Council met on June 25 and26 in sessions open to the public.

The Council's function is to advise the Boardon the exercise of the Board's responsibilitiesunder the Consumer Credit Protection Act andon other matters on which the Board seeks itsadvice.

NOMINATIONS SOUGHT FORAPPOINTMENTS TOCONSUMER ADVISORY COUNCIL

The Federal Reserve Board announced on June25, 1987, that it is seeking nominations of quali-fied individuals for 11 appointments to its Con-sumer Advisory Council to replace memberswhose terms expire on December 31, 1987.

The Consumer Advisory Council was estab-lished by the Congress in 1976, at the suggestionof the Board, to advise the Board on the exerciseof its duties under the Consumer Credit Protec-tion Act and on other consumer-related matters.The Council meets three times a year.

Nominations should include the name, ad-dress, and telephone number of the nominee,past and present positions held, and specialknowledge, interests, or experience related toconsumer credit or other consumer financialservices.

Nominations should be submitted in writing toDolores S. Smith, Assistant Director, Division ofConsumer and Community Affairs, Board ofGovernors of the Federal Reserve System,Washington, D.C. 20551. Nominations should bereceived by August 31, 1987.

DIRECT DEPOSIT OF SOCIAL SECURITYPAYMENTS IN THE UNITED KINGDOM

The Federal Reserve and the Social SecurityAdministration announced on June 26, 1987, thebeginning of direct electronic deposit of SocialSecurity benefit payments in the United King-dom.

About 5,300 of the United Kingdom's 14,000recipients of U.S. benefits have had their Junebenefit payment electronically deposited intotheir bank accounts. This marks the first timethat the U.S. government has made direct depos-it payments overseas.

The new system assures prompt payment of

656 Federal Reserve Bulletin D August 1987

benefits on the same day as U.S. recipients,normally the third day of the month, and obvi-ates the process of changing U.S. dollars intoBritish pounds sterling. Direct deposit is also amore efficient means of payment delivery thanpaper checks.

The start of this new international direct de-posit program culminates a two-year, multi-agency effort by the Social Security Administra-tion, Federal Reserve Bank of New York, Bankof England, British Automated Clearing Ser-vices, Ltd., and the Departments of Treasuryand State to pay overseas beneficiaries electroni-cally rather than by paper check. This is the firsttime that the Federal Reserve has transformedthe U.S. automated clearinghouse (ACH) formatinto that of another country to transfer paymentsto foreign financial institutions.

Although implementation plans have not beencompleted, the direct deposit of Social Securitypayments to beneficiaries residing in other coun-tries, such as Canada and West Germany, isunder study.

AMENDMENT TO REGULATION Y

The Federal Reserve Board announced on June12, 1987, approval of an amendment to Regula-tion Y implementing amendments to the Changein Bank Control Act required by the Anti-DrugAbuse Act of 1986.

The Anti-Drug Abuse Act of 1986 amended theChange in Bank Control Act (CBCA) to requirefederal banking agencies to publish notice of anyfiling made under the CBCA to acquire control ofa bank or a bank holding company.

The Anti-Drug Abuse Act requires the bankingagencies to publish the name of each partyacquiring control of a bank or a bank holdingcompany, as well as the name of the targetinstitution, and to solicit public comment on theproposed acquisition, in particular from personsin the relevant local area.

PROPOSED ACTION

The Federal Reserve Board requested commentby July 6, 1987, on a revised proposal to chargeassessments and fees for certain supervisory

activities. The Board had previously requestedcomments on a specific schedule of assessmentsand fees for the supervision of Edge act corpora-tions and for processing various applicationssubmitted to the Federal Reserve System bybanks, bank holding companies, and other com-panies and individuals.

The Board is now seeking comment on arevised proposal that would charge an annualassessment for inspection and supervision of theparent company and nondepository subsidiariesof bank holding companies as well as a signifi-cantly reduced fee schedule for supervising Edgeact corporations and for processing applications.While the Board is still considering whether tobegin charging for certain supervisory activities,the Board seeks comment on this revised ap-proach of recovering a smaller percentage ofcosts over a broader range of services.

CHANGES IN BOARD STAFF

The Board of Governors announced the follow-ing official staff actions effective June 17, 1987:

(1) Change of title of James L. Kichline fromDirector to Staff Director, Research and Statis-tics; (2) change of title of William Taylor fromDirector to Staff Director, Banking Supervisionand Regulation; (3) change of title of Edwin M.Truman from Director to Staff Director, Interna-tional Finance; (4) transfer and title change ofDonald L. Kohn from Deputy Staff Director inthe Office of Staff Director for Monetary andFinancial Policy to Deputy Director, Division ofResearch and Statistics (Monetary Policy andFinancial Markets); and (5) transfer of NormandR.V. Bernard to the Office of Board Members.

These assignments will result in the dissolutionof the Office of Staff Director for Monetary andFinancial Policy.

The Board announced the following additionalstaff actions:

James L. Kichline, Staff Director, Division ofResearch and Statistics, resigned, effective July31, 1987.

Lynn Smith Fox was appointed Special Assis-tant to the Board for Congressional Liaison inthe Office of Board Members, effective July 6,1987.

Announcements 657

David L. Williams was appointed AssistantDirector in the Division of Support Services,effective July 6, 1987.

Ms. Fox came to the Board in January 1986after several years on the staff of the HouseSubcommittee on Economic Stabilization. Sheholds a B.A. from Smith College and an M.B.A.from George Washington University.

Mr. Williams came to the Board in 1973 andwas promoted to Assistant to the Director of theDivision of Support Services in January 1987.

SYSTEM MEMBERSHIP.- ADMISSION OFSTATE BANKS

The following banks were admitted to member-ship in the Federal Reserve System during theperiod June 1 through June 30, 1987:

OhioDayton Trustcorp Company

VirginiaRichlands First Virginia

Bank—Clinch Valley

Legal Developments

659

AMENDMENT TO REGULATION Y

The Board of Governors is amending its Regulation Y,Bank Holding Companies and Change in Bank Con-trol, to implement certain amendments to the Changein Bank Control Act, Under the final rule, notificantsunder the Act are required to publish, in a newspaperof general circulation in communities where the bankor bank holding company to be acquired is located, anannouncement of the proposed acquisition no laterthan 10 calendar days after the notice has been accept-ed by the appropriate Federal Reserve Bank.

Effective June 12, 1987, the Board amends12 C.F.R. Part 225 as follows:

Part 225—Bank Holding Companies andChange in Bank Control

1. The authority citation for Part 225 continues to readas follows:

Authority: 12 U.S.C. 18170X13), 1818, 1843(c)(8),1844(b), 3106, 3108, 3907 and 3909.

2. Section 225.43(a) is revised to read as follows:

Section 225.43—Procedures for Filing,Processing, Publishing, and Acting on Notices

(a)(l) Filing notice. A notice required under thissubpart shall be filed with the appropriate ReserveBank and shall contain the information required byparagraph 6 of the Change in Bank Control Act(12 U.S.C. 18170X6)), or prescribed in the designatedBoard form. With respect to personal financial state-ments required by paragraph 6(B) of the Change inBank Control Act, an individual may include astatement of assets and liabilities as of a date within90 days of filing the notice, a brief income summary,and a description of any subsequent materialchanges, subject to the authority of the ReserveBank or the Board to require additional information.(2) Acceptance of notice. The 60-day notice periodspecified in section 225.41 of this subpart shallcommence on the date all required information isreceived by the appropriate Reserve Bank or theBoard. The Reserve Bank shall notify the person or

persons submitting a notice under this subpart of thedate all such required information is received andthe notice is accepted for processing.(3) Publication.

(i) Newspaper announcement. A person(s) filing anotice under this subpart shall publish, in a formprescribed by the Board, an announcement solic-iting public comment on the proposed acquisition.The announcement shall be published in a news-paper of general circulation in the community inwhich the head office of the state member bank tobe acquired is located or, in the case of a proposedacquisition of a bank holding company, in thecommunity in which its head office is located andin the community in which the head office of eachof its subsidiary banks is located. The announce-ment shall be published no earlier than 10 calen-dar days prior to the filing of the notice with theappropriate Reserve Bank and no later than 10calendar days after acceptance of the notice bythe Reserve Bank. A copy of the announcementand the publisher's affidavit of publication shall beprovided to the appropriate Reserve Bank,(ii) Contents of newspaper announcement. Thenewspaper announcement shall state:

(A) the name of each person identified in thenotice as a proposed acquiror of the bank orbank holding company and the percentage ofshares proposed to be acquired;(B) the name of the bank or bank holdingcompany to be acquired, including, in the caseof a bank holding company, the name of each ofits subsidiary banks; and(C) a statement that interested persons maysubmit comments on the notice to the Board orthe appropriate Reserve Bank for a period of 20days or such shorter period as may be providedpursuant to paragraph (a)(3)(v) of this section.

(iii) Federal Register announcement. The Boardwill, upon filing of a notice under this subpart,publish announcement in the Federal Register ofreceipt of the notice. The Federal Register an-nouncement will contain the information requiredunder paragraphs (a)(3)(ii)(A) and (a)(3)(ii)(B) ofthis section and a statement that interested per-sons may submit comments on the proposedacquisition for a period of 15 days or such shorter


period as may be provided pursuant to paragraph(a)(3)(v) of this section. The Board may waivepublication in the Federal Register if the Boarddetermines that such action is appropriate,(iv) Delay of publication. The Board may permitdelay in the publication required under para-graphs (a)(3)(i) and (a)(3)(iii) if the Board deter-mines, for good cause shown, that it is in thepublic interest to grant such a delay. Requests fordelay of publication may be submitted to theappropriate Reserve Bank.(v) Shortening or waiving notice. In circum-stances requiring prompt action, the Board mayshorten the public comment period required underthis paragraph. The Board may also waive thenewspaper publication and solicitation of publiccomment requirements of this paragraph, or itmay act on a notice before the expiration of apublic comment period, if it certifies in writingthat disclosure of the notice, solicitation of publiccomment, or delay until expiration of the publiccomment period would seriously threaten thesafety or soundness of the bank or bank holdingcompany to be acquired.

(4) Consideration of public comments. In actingupon a notice filed under this subpart, the Boardshall consider all public comments received in writ-ing within the period specified in the newspaper orFederal Register announcement, whichever is later.At the Board's option, comments received after thisperiod may, but need not, be considered.(5) Standing. No person (other than the acquiringperson) who submits comments or information on anotice filed under this subpart shall thereby becomea party to the proceeding or acquire any standing orright to participate in the Board's consideration ofthe notice or to appeal or otherwise contest thenotice or the Board's action regarding the notice.

3. Section 225.43(c)(2) is revised to read as follows:

(c)

(2) Extensions of time period.(i) The Board may extend the 60-day period inparagraph (c)(l) of this section for an additional 30days by notifying the acquiring person(s).(ii) The Board may further extend the periodduring which it may disapprove a notice for twoadditional periods of not more than 45 days each ifthe Board determines that:

(A) any acquiring person has not furnished allthe information required under paragraph (a) ofthis section;

(B) any material information submitted is sub-stantially inaccurate;(C) it is unable to complete the investigation ofan acquiring person because of inadequatecooperation or delay by that person; or(D) additional time is needed to investigate anddetermine that no acquiring person has a recordof failing to comply with the requirements of theBank Secrecy Act, subchapter II of Chapter 53of Title 31, United States Code.

(iii) If the Board extends the time period underthis paragraph, it shall notify the acquiring pcr-son(s) of the reasons therefor and shall include astatement of the information, if any, deemedincomplete or inaccurate.

4. Section 225.43(d) is revised to read as follows:

(d)(l) Investigation and report. After receiving a no-tice under this subpart, the Board or the appropriateReserve Bank shall conduct an investigation of thecompetence, experience, integrity, and financialability of each person by and for whom an acquisi-tion is to be made. The Board shall also make anindependent determination of the accuracy andcompleteness of any information required to becontained in a notice under paragraph (a) of thissection. In investigating any notice accepted underthis subpart, the Board or Reserve Bank may solicitinformation or views from any person, including anybank or bank holding company involved in thenotice, and any appropriate state, federal, or foreigngovernmental authority.(2) The Board or the appropriate Reserve Bank shallprepare a written report of its investigation, whichshall contain, at a minimum, a summary of theresults of the investigation.

* * * * *

Modification to Federal Reserve ACH Service

The Board of Governors has modified the procedureused by Federal Reserve Banks to recover the value offloat generated in automated clearing house (ACH)operations due to nonstandard holiday closings byeliminating the exception procedure for institutionsthat object to receiving debits on mandatory nonstan-dard holidays.

The Board's policy on float recovery proceduresused by Reserve Banks when processing ACH debitson days when a receiving institution is closed due to amandatory nonstandard holiday states that if a receiv-er of an ACH debit transaction is closed on a nonstan-

Legal Developments 661

dard holiday, the Reserve Bank will debit the receiv-er's account as though the institution were open orassess the cost of the float through an explicit chargeor an as-of adjustment. If, after consultation with itsReserve Bank, an institution still objects to receivingdebits on mandatory nonstandard holidays, the Re-serve Bank will not charge the institution on suchdays, but will use the preexisting procedures forrecovering the ACH float that results. (Adopted by theBoard on June 12, 1986, 51 Fed. Reg. 21,421, effectiveApril I, 1987).

On May 14, 1987, NACHA, the national tradeassociation for depository institutions participating inthe ACH service, adopted a rule requiring its memberinstitutions to accept debit charges to their reserve orclearing accounts for debit transactions on nonstan-dard holidays. Under Reserve Bank operating circu-lars, NACHA rules are incorporated by reference andtherefore apply to all ACH participants.

Because industry practice appears to call for pay-ment of ACH debit on mandatory nonstandard holi-days, the Board has determined to modify its policy toconform with the rule adopted by NACHA. As aresult, the exceptions procedure no longer applies.

Effective July 2, 1987.

ORDERS ISSUED UNDER BANK HOLDINGCOMPANY ACT. BANK MERGER ACT. BANKSERVICE CORPORATION ACT. AND FEDERALRESERVE ACT

Orders Issued Under Section 3 of the BankHolding Company Act

Hartford National CorporationHartford, Connecticut

Order Approving Acquisition of a Bank

Hartford National Corporation, Hartford, Connecticut,a bank holding company within the meaning of the BankHolding Company Act ("Act"), 12 U.S.C. § 1841et seq., has applied for the Board's approval undersection 3(a)(3) of the Act (12 U.S.C. 8 1842(a)(3)) toacquire the Savings and Loan Association of Southing-ton, Southington, Connecticut ("Bank").

Notice of the application, affording interested per-sons an opportunity to submit comments, has beengiven in accordance with section 3(b) of the Act, 52Federal Register 7,487 (1987). The time for filingcomments has expired, and the Board has consideredthe application and all comments received in light ofthe factors set forth in section 3(c) of the Act.

Bank is a state chartered, stock savings bank, theaccounts of which are insured by the Federal Savingsand Loan Insurance Corporation ("FSL1C"). Bankhas adopted a plan by which it will withdraw itsinsurance of deposits from the FSL1C fund and con-vert instead to Federal Deposit Insurance Corporation("FDIC") insurance.

Since Bank, at the time of acquisition by Applicant,will be a state chartered bank that accepts demanddeposits and makes commercial loans, Bank is a"bank" for purposes of the Act, and Applicant proper-ly has applied to acquire Bank under section 3 of theAct, which governs the acquisition of banks by bankholding companies.

Applicant, with deposits of $7 billion, is the secondlargest commercial banking organization in Connecti-cut, controlling 25.8 percent of the total deposits incommercial banks in the stale.' After conversion toFDIC insurance, Bank will control deposits of $76.7million, representing less than 1 percent of the totaldeposits in commercial banking organizations in thestate.2 Upon consummation of this proposal. Appli-cant will continue to be the second largest commercialbanking organization in Connecticut, with no signifi-cant change in its market share or deposit size. Con-summation of this proposal therefore would not haveany significant adverse effect upon the concentrationof banking resources in the state.

Bank is located in the Hartford banking market,where Applicant also competes.1 In the Hartfordbanking market. Applicant is the second largest of 17commercial banking organizations, controlling depos-its of $2.5 billion, which represents 35.8 percent oftotal deposits in commercial banks in the market.1

Upon conversion. Bank will be the 13th largest of 18commercial banking organizations in Hartford, con-trolling deposits of $48.5 million, representing lessthan 1 percent of the market share. Following acquisi-tion of Bank, Applicant would remain the secondlargest commercial banking organization in the Hart-ford banking market, controlling 36.5 percent of themarket's total commercial bank deposits. The Herfin-

1. State deposit data are as of December 31, 1986.2. Deposit data for Bank are calculated on a commercial banks only

basis, based on financial information reported prior to Bank's conver-sion.

3. The Hartford banking market is approximated by the HartfordRand McNally Area ("RMA"), minus the Windham County townshipof Windham and the Tolland County township of Mansfield, plus theWindham County township ol Ashford, the Hartford County townshipof Hartland, the Tolland County township of Union, and the remain-ing portions of Plymouth and Fiust Haddam not already included in theRMA.

4. Market data are as of June 30. 1985.

662 Federal Reserve Bulletin . ] August 1987

dahl-Hirschman Index ( "Hi l l " ) ' would increase byonly 8 points to 3079, and the market would remainmoderately concentrated. Consummation of this pro-posal therefore is unlikely to substantially lessen com-petition in the Hartford banking market.

Based upon a review of all facts of record, the Hoardhas determined that the linancial and managerial re-sources of Applicant, its subsidiary banks and Bankare consistent with approval. Considerations relatingto the convenience and needs of the communities to beserved also are consistent with approval of this pro-posal.

The Board notes that this application involves theacquisition of a bank that results from conversion of anon-failing, l'SI.K'-insured state savings bank. Theacquisition proposed here, however, does not fallwithin the scope of the Board's policy and rulingsregarding acquisitions of thrift institutions under sec-tion 4 of the Act'1 or the provisions of the 1982 Garn-SlGermain Depository Institution Act regarding acquisi-tions of thrift institutions. Upon its acquisition by-Applicant, Hank will accept demand deposits andengage in commercial lending, and will be subject to allthe banking standards of the Act.

In addition, the Hoard expects that Applicant willcomply with all state and federal requirements neces-sary for consummation of the acquisition, and theHoard's approval of this application under the Act isnot intended to preempt any such requirements.7 TheHoard has previously stated that its approval of trans-actions under section 3 of the Act does not relieve anapplicant or the bank involved of the responsibility toobtain approval under other federal or state laws andregulations and does not shield an applicant from theconsequences of violations of other laws."

Based on the foregoing and other facts of record, theBoard has determined that the application should be,and hereby is, approved. This transaction shall not be

5. Under ihe revised Depar tmen t ol Jus t ice Merger ( in ide l ines (49l-'ederal Register 26,823 (.lime 29. 1984)). any market in which thepos t -merger Hill is ove r 1800 is cons ide red highly c o n c e n t r a t e d , amithe Depar tmen t is likely to chal lenge a merge r that increases the H i l lby more than 50 points unless o the r factors indicate that the mergerwill not substant ia l ly lessen compe t i t ion . The Depar tment of Just icehas informed the Hoard that a bank merger or acquis i t ion general lywill not be chal lenged (in tile absence of o the r (acts indicat ing anant icompet i t ive elt'ect) unless the pos t -merger H i l l is at least 1800 andthe merge r increases the HH1 by at (east 200 points .

6. / ) . / / . Hahlwin Company, 63 l i DI .KAI RI SI KVT HUI . I I T I N 280(1977).

7. The Board may not a p p r o v e an appl ica t ion that would result in aviolation of federal or s ta te law. Whitney National Hank v. Hank ofNew Orleans, 379 U . S . 411 (19M).

8. The One Huneorp, 7.1 l i I I I .RAI . R I S I - K V I R u i i i i i N 55, 1.15

(1987): SajiaCorp, 73 J i m J(AI. RI-:SI:KVI-. t iu i I I-.MN 137 (1987);Comeriea Incorporated (Order dated May 4. 1987).

consummated before the thirtieth calendar day follow-ing the effective date of this Order, or later than threemonths after the elfective date of this Order, unlesssuch period is extended for good cause by the Board orby the Federal Reserve Bank of Boston, acting pursu-ant to delegated authority.

By order of the Hoard of Governors, effectiveJune 1, 1987.

Voting for this action: Chairman Volcker anil GovernorsJohnson, Seger, Angcll, Heller, and Kcllcy.

|sr;AI.WJI.I.JAM W. Wn.i;s

Secretary of the Hoard

KeyCorpAlbany, New York

Key Bancshares of New York, Inc.Albany, New York


KeyCorp and Key Bancshares of New York, Inc.("Key New York"), both of Albany, New York("Applicants"), bank holding companies within themeaning of the Bank Holding Company Act(12 U.S.C. S 1841 et seq.) ("HHC Act") have appliedfor the Board's approval under section 3(a)(3) of theBHC Act, (12 U.S.C. § 1842(a)(3)), to acquire all ofthe voting shares of Key Bank USA, National Associ-ation, Albany, New York ("Bank").

Notice of the application, affording opportunity forinterested persons to submit comments, has beengiven in accordance with section 3(b) of the HHC Act(52 federal Register 6,218 (1987)). The time for filingcomments has expired and the Board has consideredthe application and all comments received in light ofthe factors set forth in section 3(c) of the BHC Act(12 U.S.C. § I842(c)),

KeyCorp is the 59th largest commercial bankingorganization in the United States, with 13 bank subsid-iaries held through four intermediate bank holdingcompanies in Maine, Alaska, Oregon and New York.Key New York is the 12th largest commercial bankingorganization in New York with 6 bank subsidiaries.Key New York controls total deposits of $1.9 billion,representing 2.1 percent of the total deposits in com-mercial banking organizations in the state.1

I. Sta te deposi t data are as of D e c e m b e r 31 , 1986.

L.egul Developments 663

Bank is a newly chartered national bank formed toengage in traditional retail bank lending and deposittaking activities.2 Bank will offer its services throughdirect response marketing nationwide, by mail orderand by advertising in newspapers and magazines.Bank will direct its marketing efforts to customers ingeographic areas not served by Applicants' existingsubsidiary banks. Consummation of the proposedtransaction therefore would not result in any signifi-cant adverse effects on existing or potential competi-tion or increase the concentration of banking re-sources in any relevant area.

The financial resources and future prospects ofApplicants, their subsidiary banks, and Bank are con-sidered satisfactory and consistent with approval.

In its evaluation of Applicants' managerial re-sources, the Board has considered certain violations ofthe Currency and Foreign Transactions Reporting Act("CFTRA") and the regulations issued thereunder byApplicants' subsidiary banks.' In this regard, theBoard notes that Applicants brought these matters tothe attention of appropriate supervisory authoritiesafter CFTRA violations were discovered through aninternal audit program. Applicants also have cooperat-ed fully with the Department of Treasury and lawenforcement agencies throughout the investigativeprocess. In addition, Applicants have undertaken acomprehensive remedial program to correct these vio-lations and to prevent similar violations from occur-ring in the future. Specifically, Applicants each havefiled corrective currency transaction reports("CTRs"); appointed a senior officer responsible forensuring compliance with CFTRA reporting require-ments; instituted intensive internal training for bankpersonnel regarding compliance with the CFTRA;established a new computer software system allowingfor the centralization of exempt list computation andthe monitoring of CTRs; and required all bank person-nel to participate in CFTRA retraining courses at leastonce a year. Finally, Applicants have advised theBoard that they have reached agreement with theDepartment of Treasury on a settlement of all out-standing CFTRA violations.

Based on the foregoing and all of the facts of record,the Board concludes that the managerial resources ofApplicants, their subsidiary banks, and Bank are con-sistent with approval. Considerations related to theconvenience and needs of the communities to beserved also are consistent with approval.

2. Bank received preliminary charter approval from the Office ofthe Comptroller of the Currency on February 11, 1987.

3. 31 U.S.C. § 5311, ft seq.; 31 C.F;.R. § 103.

Based on the foregoing and other facts of record, theBoard has determined that the application should be,and hereby is, approved. The transaction shall not beconsummated before the thirtieth calendar day follow-ing the effective date of this Order or later than threemonths after the etl'ective date of this Order, unlesssuch period is extended for good cause by the Board orthe Federal Reserve Bank of New York, acting pursu-ant to delegated authority.

By order of the Board of Governors, effectiveJune 15, 1987.

Voting for this action: Chairman Volcker and GovernorsJohnson, Seger, Heller, and Kelley. Absent and not voting:Governor Angell.

[SEALJAMES MCAFEE

Associate Secretary of the Hoard

KeyCorpAlbany, New York

Key Pacific BancorpAnchorage, Alaska


KeyCorp, Albany, New York and Key Pacific Ban-corp, Anchorage, Alaska ("Key Pacific") (together"Applicants"), bank holding companies within themeaning of the Bank Holding Company Act(12 U.S.C. § 1841 et seq.) ("BHC Act") have appliedfor the Board's approval under section 3(a)(3) of theBHC Act (12 U.S.C. § 1842(a)(3)), to acquire all of thevoting shares of Seattle Trust & Savings Bank, Seat-tle, Washington ("Bank").

Notice of the application, affording opportunity forinterested persons to submit comments, has beengiven in accordance with section 3(b) of the Act (52Federal Register 17,334 (1987)). The time for filingcomments has expired, and the Board has consideredthe application and all comments received in light ofthe factors set forth in section 3(c) of the BHC Act(12 U.S.C. 8 1842(c)).

Applicants' proposal represents the first direct ac-quisition of a Washington banking organization by anAlaska bank holding company; it also represents thefirst indirect acquisition by a New York bank holdingcompany. The Board is prohibited under section 3(d)of the BHC Act, 12 U.S.C. § 1842(d) ("DouglasAmendment"), from approving any application by abank holding company seeking to acquire a bank orbank holding company outside the applicant's home

664 Federal Reserve Bulletin (1 August 1987

state,1 unless the state where the target hank is locatedhas specifically authorized the acquisition, "by lan-guage to the effect and not merely by implication."KeyCorp's home state is New York and Key Pacific'shome state is Alaska.

Fffective July I. 1987, the statute laws of Washing-ton2 will allow an out-of-slate bank holding companyto acquire a bank located in Washington if:

(1) the bank or banking association to be acquiredhas conducted business tor at least three years;(2) the laws of the state where the bank holdingcompany acquiror principally conducts its opera-tions would allow a Washington bank holding com-pany to acquire more than 5 percent of the votingstock, or all or substantially all of the assets, of abank in that state and to operate the acquired bankon no less favorable terms and conditions than areimposed under Washington law; and(3) the state supervisor of banking has determinedthat the laws of Washington and of the acquiringbanking organization's home state are reciprocal.

Based on its review of the relevant Washington.New York', and Alaska1 statutes, the Hoard hasdetermined that New York and Alaska laws wouldpermit a Washington bank holding company to acquirea bank in those states. The Hoard therefore concludesthat the proposed acquisition satisfies the require-ments of Washington's interstate hanking statute, andthat New York and Alaska holding companies, such asApplicants, may acquire a bank located in Washing-ton, such as Bank. In addition, by letter dated April 3,1987, the Supervisor of Banking of the State of Wash-ington has indicated that the requirements of Alaskaand New York interstate banking laws are reciprocalwith those of Washington, and that Applicants' pro-posal would be authorized under Washington law.Accordingly, the Board concludes that approval ofApplicants' proposal to acquire Bank is not barred bythe Douglas Amendment.

KeyCorp is the 59th largest commercial bankingorganization in the United States, with 13 bank subsid-iaries in Maine, Alaska, Oregon, and New York thatcontrol $9.1 billion in deposits. Key Pacific is thefourth largest of the thirteen commercial banking

1. A b a n k h o l d i n g c o m p a n y ' s h o m e s t a t e t o r p in p o s e s o f t h eD o u g l a s A m e n d m e n t is t ha t s t a l e in w h i c h t h e to t a l d e p o s i t s o f i tsh a n k i n g s u b s i d i a r i e s w e r e l a r g e s t on J u l y 1, l % 6 . o r on t h e d a t e itb e c a m e ' a b a n k h o l d i n g c o m p a n y , w h i c h c - v e c is l a t e r . 12 U . . S . C .§ !X42td ) .

2. R e v i s e d C o d e of W a s h i n g t o n 8$ 3().04.232<h)< I >--(3) (19X7).3 . N . Y . . S . H a n k i n g I . . 55 1 4 2 - h K a ) . (b ) (IMX7I.4 . A l a s k a S t a t u t e s 55 ( )6 . ( )v235(e ) - (g ) (14X61.

organizations in Alaska with two bank subsidiaries.Key Pacific controls total deposits of $502.5 million inAlaska, representing 12.4 percent of the total depositsin commercial banking organizations in the stated KeyPacific has one bank subsidiary in Oregon and is thethird largest of 54 commercial banking organizations inthat state. Key Pacific controls total deposits of $885.7million in Oregon, representing 6.1 percent of totaldeposits in commercial banking organizations in thestate. Bank is the seventh largest of 89 commercialbanking institutions in Washington, controlling depos-its of $666.8 million, representing 2.6 percent of thetotal deposits in commercial banks in the state. Con-summation of this proposal therefore would not have asignificant etVeet upon the concentration of bankingresources in Alaska, New York or Washington.

Applicants and Bank operate in different bankingmarkets. Principals of Applicants are not affiliatedwith any other depository organizations in any ofthose markets. Applicants' proposal therefore wouldnot result in any adverse elfects upon competition inany relevant market. Accordingly, the Board con-cludes that competitive considerations under the HHCAct are consistent with approval.

In its evaluation of Applicants' managerial re-sources, the Board has considered certain violations ofthe Currency and Foreign Transactions Reporting Act("CFTRA") and the regulations issued thereunder by-Applicants' subsidiary banks.'1 In this regard, theBoard notes that Applicants brought these matters tothe attention of appropriate supervisory authoritiesafter CFTRA violations were discovered through aninternal audit program. Applicants also have cooperat-ed fully with the Department of Treasury and lawenforcement agencies throughout the investigativeprocess. In addition, Applicants have undertaken acomprehensive remedial program to correct these vio-lations anil to prevent similar violations from occur-ring in the future. Specifically, Applicants each havefiled corrective currency transaction reports("CTRs"); appointed a senior officer responsible forensuring compliance with CFTRA reporting require-ments; instituted intensive internal training for bankpersonnel regarding compliance with the CFTRA;established a new computer software system allowingfor the centralization of exempt list computation andthe monitoring of CTRs; and required all bank person-nel to participate in CFTRA retraining courses at leastonce a year. Finally, Applicants' have advised theHoard that they have reached agreement with the

5 . S t a t e d e p o s i t d a t a a r e a s o f D e c e m b e r 3 1 , I 'JXd.d. 3 1 U . S . I ' . 5 M i l . el s i q . ; 31 ( .1 . R . 5 1 0 3 .


Department of Treasury on a settlement of all out-standing CFTRA violations.

For the foregoing reasons and based upon a reviewof all of the facts of record, the Board concludes thatthe managerial resources of Applicants are consistentwith approval. The Board also finds that the financialresources of Applicants, their subsidiaries and Bankare consistent with approval of this application. Con-siderations relating to the convenience and needs ofthe communities to be served are aiso consistent withapproval.

Based on the foregoing and other facts of record, theBoard has determined that this application should beand hereby is approved.7 The transaction shall not beconsummated before the thirtieth calendar day follow-ing the effective date of this Order, or later than threemonths after the effective date of this Order, unlesssuch period is extended by the Board or by the FederalReserve Bank of New York acting pursuant to delegat-ed authority.


Voting for this action: Chairman Volcker and Governors-Johnson, Seger, Heller, and Kelley. Absent and not voting:Governor Angell.

[SEAL]JAMES MCAFEE

Associate Secretary of the Board

Mercantile Bankshares CorporationBaltimore, Maryland


Mercantile Bankshares Corporation, Baltimore, Mary-land, a bank holding company within the meaning ofthe Bank Holding Company Act (12 U.S.C. § 1841

7. The National Association of Life Underwriters and the NationalAssociation of Professional Insurance Agents submitted commentsprotesting Board approval of this application on the grounds that thegeneral insurance agency activities conducted by a department ofBank are prohibited under the amendments to section 4 of the BHCAct contained in the 1982 Garn-St Germain Depository InstitutionsAct. In response to these protests, Applicants have agreed that Bankwill divest or terminate its general insurance agency activities withintwo years of consummation of the acquisition, unless during suchperiod Applicants receive approval pursuant to an application undersection 4(c)(8) of the BHC Act to retain such activities. During thistwo-year period or unless authorization is granted pursuant to theBHC Act for broader activities. Applicants will limit the insuranceagency activities of Bank to the renewal of existing policies and thosecredit-related insurance agency activities permitted under section4(c)(8)(A) of the UHC Act. The Board believes that Applicants'divestiture commitments adequately address the issues raised bythese protestants.

et seq.) ("Act"), has applied for the Board's approvalunder section 3 of the Act to acquire The FastvilleBank, Eastville, Virginia ("Bank").

Notice of the application, affording an opportunityfor interested persons to submit comments, has beengiven in accordance with section 3(b) of the Act (52Federal Register 11,547 (1987)). The time for filingcomments has expired, and the Board has consideredthe applications and all comments received in light ofthe factors set forth in section 3(c) of the Act.

Applicant is the fifth largest commercial bankingorganization in Maryland, controlling total deposits of$2.4 billion, representing 9.1 percent of the deposits incommercial banks in the state.1 Bank is among thesmaller commercial banking organizations in Virginia,controlling total deposits of $18.5 million, representingless than I percent of the deposits in commercial banksin the state. Consummation of this proposal would nothave any significant effect upon the concentration ofbanking resources in either Maryland or Virginia.

Section 3(d) of the Act, the Douglas Amendment,prohibits the Board from approving an application by abank holding company to acquire a bank locatedoutside the bank holding company's home state, un-less such acquisition is "specifically authorized by thestatute laws of the state in which such bank is located,by language to that effect and not merely by implica-tion."2

Applicant's home state is Maryland. The Common-wealth of Virginia has enacted an interstate bankingstatute that permits, on a reciprocal basis, the acquisi-tion of a bank in Virginia by a bank holding companythat has its principal place of business located in adefined region, which includes the state of Maryland,subject to the approval of the Virginia Commissionerof Financial Institutions.' Maryland has enacted aregional interstate banking statute similar to that ofVirginia, which permits the acquisition of a Marylandbank holding company or bank by an institution locat-ed in Virginia on a reciprocal basis.

Upon its review of the relevant Virginia and Mary-land statutes, the Board has determined that theMaryland statute satisfies the conditions of the Virgin-ia regional interstate banking statute and that Virginiahas by statute expressly authorized a Maryland bank

1. Deposit data are as of June 30, 1986.2. A bank holding company's home state for purposes of the

Douglas Amendment is that state in which the total deposits of itsbanking subsidiaries were largest on July 1. 1966, or on the date ilbecame a bank holding company, whichever date is later. 12 U.S.C.S 1842.

3. Va. Code Ann. § 6.1-399 (Supp. 19X6); Md. Ann. Code art. 5.§ 1003 (1986).

666 Federal Reserve Bulletin U August 1987

holding company, such as Applicant, lo acquire aVirginia bank or hank holding company, such asBank.' Moreover, the hanking commissioners forMaryland and Virginia have executed a cooperativeagreement lor access lo records, examinations, andother information relating to state-chartered banks,based on a finding of general reciprocity between thetwo statutes. Accordingly, based on the above factors,the Board concludes that the Douglas Amendmentdoes not prohibit Board approval of this proposal. TheBoard's Order is specifically conditioned upon ap-proval of the transaction by the Virginia Commission-er of Financial Institutions.

Applicant and Bank currently operate in differentbanking markets. Principals of Applicant are not affili-ated with any depository institution in the market inwhich Bank operates. The proposal would not result inany adverse effects upon competition in any relevantmarket. Accordingly, the Board concludes that com-petitive considerations under the Act are consistentwith approval.

In its evaluation of Applicant's managerial re-sources, the Board has considered certain violationsby Applicant's subsidiary banks of the Currency andForeign Transactions Reporting Act ("CFTRA") andthe regulations thereunder.' The violations appear lohave been limited in scope, and Applicant has takenappropriate remedial action to correct such violationsand prevent their reoccurrence. The sufficiency of thecompliance procedures adopted to address theCFTRA violations at Applicant's subsidiary banks hasbeen reviewed by examiners from the appropriateregulatory authorities. The Board also has consultedwith appropriate enforcement agencies, and has con-sidered the banks' past record of overall compliancewith the law, as well as Applicant's stated commit-ments and programs to comply with CFTRA in thefuture. For the foregoing reasons, and based upon areview of all the facts of record, the Board finds themanagerial resources of Applicant and Bank to beconsistent with approval.

The financial resources and future prospects ofApplicant and Bank are considered satisfactory andconsistent with approval. Considerations relating tothe convenience and needs of the community to beserved are also consistent with approval.

Based on the foregoing and other facts of record, theBoard has determined that the application should be,

and hereby is, approved. The acquisition of Bank shallnot be consummated before the thirtieth calendar dayfollowing the effective date of this Order, or later thanthree months after the elfective date of this Order,unless such period is extended for good cause by theBoard or by the Federal Reserve Bank of Richmondpursuant to delegated authority.


Voting for this action: Vice Chairman Johnson and Gover-nors Scger, 1 Idler, and Kelley. Absent and not voting:Chairman Volcker and Governor Angell.

JAMI:S McAl-Iil'.

|SI:AI.| Associate Secretary of the Hoard

NCNB CorporationCharlotte, North Carolina

Order Approving Acquisition of a Hank

NCNB Corporation, Charlotte, North Carolina, hasapplied for the Board's approval pursuant lo section3(a)(3) of the Bank Holding Company Act (12 U.S.C.S 1841 et see/.) (the "Act") to acquire NCNB Bank ofMaryland, Baltimore, Maryland ("NCNB Bank"), ade novo Maryland-chartered trust company. NCNBBank is a nonoperating subsidiary that will be mergedwith CentraBank, Inc., Baltimore, Maryland, a Mary-land-chartered FDIC-insured mutual savings bank.The resulting bank will be an FDIC-insured statebank,1 operating under NCNB Bank's charter with thename CentraBank.

Notice of the application, affording opportunity forinterested persons to submit comments, has beenpublished (52 Federal Register 10,162 (1987)). Thetime for filing comments has expired, and the Boardhas considered all comments received in light of thefactors set forth in section 3(c) of the Act.

Applicant is the largest commercial banking organi-zation in North Carolina, with deposits of $7.7 billion,representing 22.2 percent of the total deposits incommercial banks in the state' Applicant also oper-ates banks in Florida, Georgia, South Carolina, andVirginia. On a consolidated basis. Applicant controlsdeposits of $18.6 billion.

4. \n that regard , the Hoard prev ious ly has de te rmined that theMaryland and Virginia s ta tu tes are ree iproeal in the course of itsapproval of the acquis i t ion by a Virginia hank holding c o m p a n y of aMary land hunk. Hunk of Virginia Cnnipiwv, 72 1 i n i i t A J Kr.s i .nvrHIM.I I : I I N 65(19X6).

5. 31 U . S . C . § 5311 ft sty.: 31 C.I-'.K. 8 10J.

1. N C N H Bank liled an appl ica t ion to merge with C'entral iank withthe I ' lMC on March 20, 19X7.

2. Deposit data are as of D e c e m b e r 3 1 , 1986. S t ruc tu re da t a arc a sof June 30, 1986.


CentraBank is the 18th largest commercial bank inMaryland, with deposits of $226.6 million, represent-ing 0.8 percent of total deposits in commercial banks inMaryland. Because Applicant does not operate a bankin Maryland, consummation of this proposal wouldhave no effect on the concentration of resources inMaryland.

Section 3(d) of the Act (12 U.S.C. § 1842(d)), theDouglas Amendment, prohibits the Board from ap-proving an application by a bank holding company toacquire control of any bank located outside of the bankholding company's home state unless the acquisition is"specifically authorized by the statute laws of thestate in which such bank is located, by language to thateffect and not merely by implication."1

Applicant's home state is North Carolina. The stat-ute laws of Maryland authorize the acquisition of abank or bank holding company in Maryland by a bankholding company located in another state in a definedregion, which includes North Carolina as of July 1,1987, if the laws of that state permit Maryland bankholding companies to acquire banks and bank holdingcompanies in that state.4 North Carolina has enacted asimilar regional interstate banking statute that permitsthe acquisition of a North Carolina bank holdingcompany or bank by an institution located in Mary-land.5

The Maryland Bank Commissioner has informed theBoard that the proposal appears to meet the require-ments under Maryland law, and, accordingly, theCommissioner anticipates approving the acquisition.Based on the foregoing, the Board has determined thatthe proposed acquisition is specifically authorized bythe statute laws of Maryland and thus is not prohibitedby the Douglas Amendment. The Board's order isspecifically conditioned upon satisfaction of the stateregulatory approval requirement and the effective dateof the provision of Maryland law that includes NorthCarolina within the region.

CentraBank operates in the Baltimore banking mar-ket,'1 a market in which Applicant does not operate.Accordingly, consummation of the proposal is notlikely to result in the elimination of any significantexisting competition. In view of the numerous entrantsinto the market, the Board concludes that the proposalwould not have any significant adverse effect onprobable future competition.

3. A bank holding company's home state is the state in which theoperations of the bank holding company's subsidiary banks wereprincipally conducted on July I, 1966, or on the date on which thecompany became a bank holding company, whichever is later.

4. Md. Fin. Inst. Code Ann. § 5-1001 el seq. (1986).5. N.C. Gen. Stat. § 53-209 el seq. (1985).6. The Baltimore banking market is approximated by the Baltimore

RMA and the remainder of Harford County, Maryland.

The financial and managerial resources of Appli-cant, its subsidiary banks, and CentraBank are consid-ered satisfactory and consistent with approval of thisapplication. In considering the convenience and needsof the communities to be served, the Board has takeninto account Applicant's record under the CommunityReinvestment Act (12 U.S.C. §2901 et seq.,("CRA")),7 and comments received from the Mary-land Alliance for Responsible Investment ("MARI"),a coalition of non-profit developers and other commu-nity-based organizations representing Baltimore'slow-income and minority neighborhoods.1* MARI re-quests that the Board not approve the application untilApplicant provides adequate assurances that it willmeet the convenience and needs of the low- andmoderate-income persons, and minorities, that Cen-traBank currently serves. MARI also requests that theBoard deny the application because Applicant's lend-ing practices are not consistent with safe and soundbanking practices.

In accordance with the Board's practice and proce-dure for handling protested applications,^ the FederalReserve Bank of Richmond assisted in arranging sev-eral meetings between the parties to clarify the issuesunder the CRA and to provide a forum for resolutionof differences. The parties, however, were unable tocome to a resolution of their differences.

In response to MARI's comments, the Board notesthat both Applicant and CentraBank have satisfactoryCRA records. Moreover, Applicant has developed acomprehensive corporate CRA policy for Maryland inwhich Applicant has committed to:

(1) name a Community Affairs Officer for Marylandwho will meet with community organizations, be-come familiar with available financing programs,and work with CcntraBank's branch manager, offi-cers, and personnel to meet CRA goals;(2) determine and monitor community needsthrough study of selected low- and moderate-incomeareas and meetings with community groups;(3) use its best efforts to inform the community of itsservices through marketing and advertising, withprograms specially directed at targeted areas;10

7. The CRA requires the Board, in its evaluation of a bank holdingcompany application, to a.sse.ss the record of an applicant in meetingthe credit needs of the entire community, including low- and moder-ate-income neighborhoods, consistent with safe and sound operation.

8. Although MARI's protest was not received within the time limitsset forth by the Board, the Board has considered these comments inreviewing this application.

9. See 12 C.F.R. § 262.25<c).10. These areas are census tracts within the community served by

CentraBank having a median household income equal to or less than80% of the median household income of the MSA within which thecensus tracts are located.

668 Federal Reserve Bulletin f 1 August 1987

(4) endeavor to use flexibility in applying creditcriteria, consistent with safe and sound bankingpractices, and meet with community groups in orderto obtain input from such groups as to flexiblestandards as well as to keep such groups informed oflending criteria;(5) seek to provide counseling and technical assis-tance to governmental and private community-based agencies working within the targeted areas;(6) develop basic banking services such as a pro-gram to cash government checks and a regularchecking account service at reduced maintenancefees; and(7) devote special elfort to providing housing, smallbusiness, and economic development loans to tar-geted areas.

In addition, Applicant has stated it will make a goodfaith elfort to provide at least $2 million in homemortgage and home improvement loans as well as $1million in small business loans in low- and moderate-income areas.

Based on the above and all the facts of record, andafter taking into account Applicant's commitments toenhance CenlraBnnk's service to meet the conve-nience and needs of its community, including low- andmoderate-income segments, the Board concludes thatconvenience and needs considerations are consistentwith approval of this application."

CentraBank currently engages, through a whollyowned subsidiary, in the sale of both credit-related andnoncredit-related insurance to CentraBank's custom-ers and the sale to CentraBank and its affiliates ofinsurance required for their operations. The NationalAssociation of Life Underwriters and the NationalAssociation of Professional Insurance Agents submit-ted comments protesting the application on thegrounds that the activities conducted by CentraBankarc prohibited under the amendments to section 4 ofthe Act contained in the 1982 Garn-Sl Germain Depos-itory Institutions Act ("Gam Act").

In response to the protest, Applicant has committedthat, upon consummation, CentraBank will cease all

II. MAKI also requested that the Hoard deny this applicationbecause of Applicant's lending practices u> third world nations,especially South Africa. Applicant is in compliance with all federallaws regarding its lending activities to South Africa. In addition, asnoted above, the Hoard believes that Applicant's financial condition isconsistent with approval of this application.

MARI has also requested that the Hoard order a public meeting toreceive public testimony on the issues presented by this application.Although section 3(b) of the .<\ct does not require a formal hearing inthis instance, the Board may. in any case, order a formal or informalhearing. In the Hoard's view, the parties have had ample opportunityto present their arguments in writing and to respond to one another'ssubmissions. ]n light of these lacls, the proposals by Applicant toexpand its services, and other facts of record, the Hoard has deter-mined that a hearing would serve no useful purpose. Accordingly.MAKl's request for a public hearing is hereby denied.

sales of noncredit-related insurance to CentraBank'scustomers, and will limit its insurance activities tothose credit-related insurance activities permitted un-der section 4(c)(8)(A) of the Act. Applicant's remain-ing insurance activity, the sale to CentraBank and itsaffiliates of insurance required for their operation, is apermissible servicing activity under sections 4(a)(2)(A)and 4(c)(l)(C) of the Act, and section 225.22(a)(2)(ix)of the Board's Regulation Y. The Board previouslyhas determined that the prohibition on insurance activ-ities now contained in section 4(c)(8) of the Act as aresult of the Gam Act has no bearing on the internaloperations of a bank holding company (49 FederalRegister 808 (1984)). Accordingly, the Board con-cludes that CentraBank's credit-related insurance ac-tivities and servicing activities are consistent with theAct.'2

CentraBank also currently engages, through a part-nership, in real estate investment activities." Appli-cant has committed that, upon consummation, Centra-Bank will not engage, directly or indirectly, in any realestate investment activities impermissible under theAct, except to complete its existing project. Applicanthas committed to complete this project and divest of itwithin two years of consummation of the proposal.

Based on the foregoing and other facts of record,including the commitments made by Applicant, theBoard has determined that the application under sec-tion 3 of the Act should be and hereby is approved.The acquisition of NCNB Bank shall not be consum-mated before the thirtieth calendar day following theeffective date of this Order, or later than 90 days afterthe effective date of this Order, unless such period isextended for good cause by the Board or by theFederal Reserve Bank of Richmond, pursuant to dele-gated authority.


Voting for this action: Chairman Volckcr and GovernorsJohnson, Segcr, Angell, Heller, and Kxlley.

fsi-Ai.lJAMLS MCAFIU'


12, The Independent Insuranctional Association of Casualty aAssociation of Surely Homl Prcnthat, in light of Applicant's arelated insurance sales, thev did

Agents of America, Inc.. the Na-d Surety Agents, and the Nationallucers submitted comments statins'mmitnient to terminate noncredit-ot oppose Applicant's continuation

of credit-related insurance sales permissible under section 4(c)(8)(A)of the Act and insurance activities required for the operation ofC'entraliank and its affiliates.

\3. The Maryland Hank Commissioner has questioned the legalityof this investment under state law and has requested the advice of theMaryland Attorney General on the issue. 1 he Attorney General hasnot provided an opinion yet. Applicant has committed to conform itsinvestment to the terms of the opinion within a reasonable period oftime tollowing receipt ot the opinion.


Orders Issued Under Section 4 of the BankHolding Company Act

CiticorpNew York, New York

Order Approving Purchase of Certain Assets andAssumption of Certain Liabilities of a Savings andLoan Association

Citicorp, New York, New York, a bank holding com-pany within the meaning of the Bank Holding Compa-ny Act (12 U.S.C. § 1841 et seq.) (the "BHC Act"),has applied for the Board's approval under section4(c)(8)oftheBHC Act (12 U.S.C. § I843(c)(8)), for itssubsidiary, Citicorp Savings, a Federal Savings andLoan Association, Oakland, California ("CiticorpSavings"), to purchase certain assets and assumecertain liabilities of 50 branch offices of Sears SavingsBank, Glendale, California ("Sears Savings").

Notice of the application, affording opportunity forinterested persons to submit comments, has beenpublished (52 Federal Register 12,252 (1987)). Thetime for filing comments has expired, and the Boardhas considered the application and all comments re-ceived in light of the factors set forth in section 4(c)(8)of the BHC Act.

Citicorp, with total consolidated assets of $196.1billion, is the largest banking organization in theUnited States.1 Citicorp controls nine subsidiarybanks and engages in numerous nonbanking activities,including the operation of savings and loan associa-tions in California, Washington, D.C., Florida, andIllinois.

Citicorp Savings is a federally chartered, FSLIC-insured savings and loan association ("S&L"), whichis the successor to the failed Fidelity Savings & LoanAssociation.2 Citicorp Savings has total assets of $4.9billion and operates 86 branches in California, primari-ly in the northern part of the state.

Sears Savings is a California-chartered, FSLIC-insured S&L and a wholly owned subsidiary of SearsRoebuck & Co., Chicago, Illinois. Sears Savings has91 branches in California, predominantly in the south-ern part of the state, and $6.6 billion in total assets.

Citicorp Savings proposes to assume approximately$2 billion of deposits and other liabilities and topurchase approximately $1.9 billion in tangible assetsof 50 branch offices of Sears Savings.

1. Banking data are as of December 31, 1986, unless otherwisespecified.

2. The acquisition of Citicorp Savings was approved by the Boardby Order of September 28, 1982. Citicorp (Fidelity), 68 FEDERALRESERVE BULLETIN 65ft (1982).

Section 4(c)(8) of the BHC Act (12 U.S.C.§ I843(c)(8)) authorizes a bank holding company toengage in nonbanking activities and acquire shares of anonbanking company that engages in activities deter-mined by the Board to be "so closely related tobanking or managing or controlling banks as to be aproper incident thereto." The Board previously hasdetermined that the operation of a thrift institution isclosely related to banking.'

With respect to the "proper incident" requirement,section 4(c)(8) of the BHC Act requires the Board toconsider whether the performance of the activity by anaffiliate of a holding company "can reasonably beexpected to produce benefits to the public, such asgreater convenience, increased competition, or gainsin efficiency that outweigh possible adverse effects,such as undue concentration of resources, decreasedor unfair competition, conflicts of interests, or un-sound banking practices."

In 1977, the Board determined that, as a generalmatter, the operation of an S&L was not a properincident to banking because the potential adverseeffects of generally allowing affiliations of banks andS&Ls were then sufficiently strong to outweigh anypublic benefits that might result from individual cas-es.4 In evaluating this application, the Board hasconsidered whether Citicorp's proposal involves theacquisition of an existing, healthy S&L, thus requiringthe Board to reconsider its D.H. Baldwin decision thatthe acquisition of a healthy thrift is not generally aproper incident to banking, or whether the proposalrepresents merely the permissible acquisition of cer-tain assets and the assumption of certain liabilities ofS&L branches.

Based upon its review of the record, the Board hasconcluded that Citicorp's proposal properly may beviewed as the permissible acquisition of certain assetsand liabilities of S&L branches rather than the acquisi-tion of an S&L. The acquisition here involves less thanone-third of Sears Savings' assets and liabilities, andSears Savings will not be eliminated as a competitor inany relevant market.5 This proposal also is consistent

3. See, e.g., D.ll. Baldwin Company, 63 FEDERAL RESERVE BUL-LETIN 280 (1977); Interxtate Financial Corp.. 68 FEDERAL RESERVEBULLETIN 316 (1982).

4. D.H. Baldwin Company, A3 FEDERAL RESERVE BULLETIN 280(1977). While the Board has not permitted bank holding companies toacquire thrift institutions on a general basis, the Board has consistent-ly regarded the BHC Act as authorizing it to permit such an acquisi-tion and has approved several such proposals involving failing thriftinstitutions on the basis that any adverse effects would be overcomeby the public benefits of preserving the failing thrift institutions. See.e.g., F.N.B. Corporation, 71 FEDERAL RESERVE BULLETIN 340(1985); The Chase Manhattan Corporation, 71 FEDERAL RESERVEBULLETIN 462 (1985).

5. These factors distinguish this case from the Board's decision inOld Stone Corporation (Catawba), 70 FEDERAL RESERVE BULLETIN593 (1984). In that case, the Board denied a proposal by a bank holdingcompany to acquire through an existing S&L subsidiary, all of theassets and liabilities of a healthy S&L.

670 Federal Reserve Bulletin I I August 1987

with the branching restrictions in the Hoard's Orderallowing the initial acquisition of Citicorp Savings,since the branches to be acquired are all at locations atwhich a state or national bank in California mayestablish a branch.'•

Citicorp Savings is the 21st largest depository insti-tution among commercial banking organizations andS&Ls in California, with total deposits of $2.9 billion,representing less than I percent of the total deposits incommercial banks and thrifts in the state. Upon con-summation of the proposal, Citicorp Savings wouldbecome the 15th largest depository institution amongcommercial banking organizations and S&Ls in Cali-fornia, and the ninth largest S&l, in California, con-trolling 1.4 percent of the total deposits in commercialbanks and thrifts in the state. Accordingly, (he Hoardconcludes that consummation of this proposal wouldnot have a significant adverse effect on the concentra-tion of commercial bank and thrift institution re-sources.

Citicorp Savings and Sears Savings compete forS&l. services in the I.os Angeles, San Francisco-Oakland-San Jose, and San Diego markets.7 Uponconsummation of the proposal, Citicorp Savings' mar-ket share would be less than 5 percent (based ondeposits in commercial banks and thrifts) in each ofthe markets, and the increase in concentration in themarkets would not be substantial. Accordingly, theHoard concludes that consummation of this proposalwill not have a significant adverse ellect on existingcompetition in any relevant market. The Hoard alsoconcludes that the proposal would not have any signif-icant adverse ellect on probable future competition.

In evaluating this application, the Hoard has consid-ered the financial resources of Applicant and the elVeeton these resources of the proposed acquisition. TheHoard has staled and continues to believe that capitaladequacy is an especially important factor in theanalysis of bank holding company proposals, particu-larly in transactions where a significant acquisition isproposed.1*

In this regard, the Hoard expects that bankingorganizations experiencing substantial growth inter-nally and by acquisition, such as Applicant, should

d. The proposal also is consistent with the principles underlying thebranching restrictions of the emergency thrift acquisition provisions ofthe (lain- St (iermain Depository Institutions Act of 19X2. (12 U.S.C.§ I73()a(m)(5().

7. The I.os Angeles market is approximated by the I,us AngelesRMA. The San l-'rancisco-Oaklaml-San .lose market is approximatedby the San Fnincisco-Oakland-San Jose KMA. The San Diego marketis approximated by the San Diego KMA. Market data are as of June,W, 1985.

8. Sec r,.!,'., ( IKIM' Manlunttin Corporation, 70 I HI>I:RAI RI.SI.RVIHuLU.TiN 529 (19X4); SCSI! Corporation, 69 1 'I . IMR.M R I . S I RVI.H u u . n i N 49 (19X3).

maintain a strong capital position substantially abovethe minimum levels specified in the Capital Adequacy(iiiidelines without significant reliance on intangibles,particularly goodwill.9 The Board will carefully ana-lyze the effect of expansion proposals on the preserva-tion or achievement of such capital positions.

The Hoard has reviewed this case in the light ofApplicant's capital and asset position. In approvingthis application, the Board has relied on the assur-ances of Applicant that it plans to strengthen its capitalbase in the near term, and the Board intends tomonitor progress toward this objective. Accordingly,on the basis of the above considerations, the Boardconcludes that financial factors are consistent withapproval of the application. Managerial factors andconvenience and needs also are consistent with ap-proval.

The Board also concludes that consummation of theproposal will not result in conflicts of interests, un-sound banking practices, undue concentration of re-sources, or other adverse effects.

Based upon the foregoing and all the facts of record,the Hoard has determined that the balance of publicinterest factors it is required to consider under section4(c)(8) of the HHC Act is favorable. Accordingly, theapplication is hereby approved. This determination issubject to the conditions set forth in sections 225.4(d)and 225.23(b)(3) of the Board's Regulation Y,12 C.F.R. § 225.4(d) and 225.23(b)(3). The approval isalso subject to the Board's authority to require modifi-cation or termination of the activities of the holdingcompany or any of its subsidiaries as the Board findsnecessary to assure compliance with the provisionsand purposes of the BHC Act and the Hoard's regula-tions and orders issued thereunder, or to preventevasion thereof.

This transaction shall not be consummated laterthan three months after the effective date of thisOrder, unless such period is extended for good causeby the Board, or by the Federal Reserve Bank of NewYork, pursuant to delegated authority.

By order of the Hoard of Governors, effectiveJune 29, 1987.

Voting for this action; Chairman Volcker and GovernorsScgcr, Angell, and Kellcy. Absent anil not voting: GovernorsJohnson and Heller.

[SUM.

JAMI'.S MCAIIJ-:


9, Capital Adequacy (i i i idelines, 50 iederal Register 16,05716,066-67 (April 24, 1985) (71 F I . D I K A I RI ;SI :KVI UUI I I;J IN 445(19X5)); National Citv Corporation, 70 I ' I D I . K A I . RI ;SI :HVI : H U I I . I T I N7 4 3 . 7 4 6 ( 1 9 8 4 ) .

Lcf>al Developments 671

Security Pacific CorporationLos Angeles, California

Order Approving an Application to provide Asset-Based Credit Facilities to Commercial Borrowers

Security Pacific Corporation, Los Angeles, California,a bank holding company within the meaning of theBank Holding Company Act (12 U.S.C. § 1841 etseq.)(the "Act"), has applied for the Board's approval,pursuant to section 4(c)(8) of the Act (12 U.S.C.§ 1843 (c)(8)), to acquire substantially all of the assetsof Wells Fargo Business Credit, Inc., Dallas, Texas("Company").

Notice of the application, affording interested per-sons an opportunity to submit comments, has beenpublished (52 Federal Register 10,632 (1987)). Thetime for filing comments has expired, and the Boardhas considered the application and all comments re-ceived in light of the public interest factors set forth insection 4(c)(8) of the Act.

Applicant is a multibank holding company with sixsubsidiary banks in California, Arizona, Washington,and Oregon, controlling $31 billion in domestic depos-its.1 Applicant also engages through subsidiaries invarious nonbanking activities.

Company engages in providing asset-based creditfacilities to commercial borrowers nationwide, includ-ing accounts receivable, inventory, capital equipment,and leveraged buyout/merger financing. This activityis permissible under Regulation Y (12 C.F.R.§ 225.25(b)(l)(iv)).

In order to approve this application, the Board mustalso find that the performance of the proposed activitycan reasonably be expected to produce benefits to thepublic, such as greater convenience, increased compe-tition, or gains in efficiency, that outweigh possibleadverse effects, such as undue concentration of re-sources, decreased or unfair competition, conflicts ofinterest, or unsound banking practices. Both Appli-cant and Company engage in commercial financenationwide, and therefore, some existing competitionwould be eliminated as a result of consummation of theproposal. The combined market share resulting fromthe acquisition, however, would be approximately 3percent. In addition, given the large number of alterna-tive participants providing similar services, no appre-ciable amount of potential or probable future competi-tion would be eliminated by the proposal.Accordingly, the Board does not regard the proposed

acquisition as raising any significant competitiveissues.

Consummation of the proposal will provide publicbenefits in the form of increased commercial financeservices to the market currently served by Company.Company's parent, Wells Fargo & Company, SanFrancisco, California, has made a corporate decisionto withdraw from the commercial finance business.Applicant's acquisition of Company will preserve acompetitor in the market and Applicant will providethe financial and managerial resources to support thecontinued operation of Company.

In evaluating this application, the Board also hasconsidered the financial resources of Applicant andthe effect on those resources of the proposed acquisi-tion. In this regard, the Board has previously ex-pressed concern that expansionary proposals shouldbe based on the maintenance of an adequate tangibleprimary capital position. In connection with an earlieracquisition which had the effect of decreasing Appli-cant's tangible primary capital,2 Applicant expressedits intention to restore its tangible primary capital ratioto pre-acquisition levels and to continue to strengthenits capital position. In this case, the proposal wouldinvolve only a negligible reduction in Applicant'stangible primary capital ratio, and should not have anymaterial effect on applicant's ability to meet its statedcapital goals. Based on the above facts, particularlyApplicant's plans to continue to strengthen its primarycapital position, the Board concludes that the financialand managerial resources of Applicant are consistentwith approval.

There is no evidence in the record to indicate thatconsummation of the proposal would lead to anyundue concentration of resources, decreased or unfaircompetition, unsound banking practices, or other ad-verse effects. Based on the foregoing and all the factsof record, the Board has determined that the balanceof public interest factors it is required to considerunder section 4(c)(8) is favorable. Accordingly, theapplication is hereby approved. This determination issubject to the conditions set forth in sections 225.4(d)and 225.23(b)(3) of the Board's Regulation Y,12 C.F.R. §§ 225.4(d) and 225.23(b)(3). The approvalis also subject to the Board's authority to requiremodification or termination of the activities of theholding company or any of its subsidiaries as theBoard finds necessary to assure compliance with theprovisions and purposes of the Act and the Board'sregulations and orders issued thereunder, or to pre-vent evasion thereof. This transaction shall not be

1. Data are as of March 31, 1987.2. Security Pacific Corporation, 72 FF.OF.KAI. RF.SF.RVF. UUI.I.F.TIN

800(1986).

672 Federal Reserve Bulletin [J August 1987

consummated later than three months after the effec-tive date of this Order, unless such period is extendedfor good cause by the Board or by the Federal ReserveBank of San Francisco, pursuant to delegated author-ity.


Voting for this action: Chairman Volcker and GovernorsScger, Angell, and Kclley. Absent and not voting: GovernorsJohnson and Heller.

JAMI.S M( AIKK

[SL;AI.| Associate Secretary of the Hoard

Sovran Financial CorporationNorfolk, Virginia

Order Approving Retention Shares oj an InsuranceAgency

Sovran Financial Corporation, Norfolk, Virginia("Sovran"), a bank holding company within the mean-ing of the Hank Holding Company Act (12 U.S.C.§ 1841 el seq.) (the "BHC Act"), has applied for theHoard's approval under section 4(c)(8)(D) of the BHCAct and section 225.25(b)(8)(iv) of Reguallion Y(12 C.F.R. § 225.25(b)(8)(iv)), to retain indirectly all ofthe voting shares of Sovran Insurance, Inc., a compa-ny that engages in general insurance agency activities,including the sale of life and property and casualtyinsurance to the general public.

Applicant has total consolidated assets of approxi-mately $14.6 billion and controls banks in Maryland,Virginia and the District of Columbia.1 Applicant alsoengages through certain subsidiaries in a variety ofnonbanking activities permissible for bank holdingcompanies.

On February 27, 1986, the Hoard approved anapplication under the BHC Act by Sovran to acquireSuburban Bancorp, Bethesda, Maryland, and its sub-sidiary bank, Suburban Bank. Suburban Bank, since1964, has controlled, pursuant to Maryland law, Sub-urban Insurance, Inc. (now renamed Sovran Insur-ance, Inc.), which engages in general insurance agencyactivities. Suburban Bancorp, which became a bankholding company in 1972 through acquisition of Subur-ban Hank, has since that time claimed entitlement toretain indirect ownership and control of the insurance

I. Hanking data arc as til' March .11, 14X7.

agency under the BHC' Act on the basis of section225.22(d)(2) of the Board's Regulation Y. That regula-tion allows a state bank owned by a bank holdingcompany to acquire and retain all of the voting sharesof company that engages in activities the parent statebank may conduct directly. 12 C.F.R. § 225.22(d)(2).

Sovran's application to acquire Suburban Bancorpwas protested by various insurance industry tradegroups on the ground that Suburban Insurance's activ-ities are prohibited under Title VI of the Ciarn-StGermain Depository Institutions Act of 1982. TheCiarn-St Germain Act amended section 4 of the BHC]Act to provide that, with seven specific exceptions,insurance activities are not closely related to bankingand thus are not generally permissible for bank holdingcompanies.2

The Board's February 27, 1986, Order approvingSovran's acquisition of Suburban Bancorp did notresolve this issue. In response to the protests, Sovrancommitted that if its acquisition of Suburban Bankwere approved, Suburban Insurance would, upon itsacquisition by Sovran, cease writing new policies untilthe Board acted to resolve the legal questions raisedby its insurance activities. On the basis of this commit-ment, the acquisition was consummated on March 31,1986.'

On November II, 1986, Sovran filed the presentapplication claiming entitlement to retain indirect con-trol over Suburban Insurance pursuant to section4(c)(8)(D) of the BHC Act, the grandfather provisionof the Ciarn-St Germain Act (hereinafter "exemp-tion D"). This section provides an exception to thegeneral insurance prohibition of the Garn-St GermainAct for any insurance agency activity which wasengaged in by a bank holding company or any of itssubsidiaries on May 1, 1982, subject to certain geo-graphic and functional limitations.4

Notice of the application, affording interested per-sons an opportunity to submit comments on the pro-posal, has been published in the i'ederal Register. (51Federal Register 42,138 (1986)). The time for filing

2. On October ^, 1986, (he Hoard amended Regulation Y to includein the list oi' activities that the tkvaid has found to be closely related tobanking wilhin the meaning ol section 4(c)(8) of Ihc Act and thuspermissible lor bank holding companies, the insurance agency activi-ties delineated in the seven exemptions to the (iarn-St Cicrmain Act.51 I-'fdrnil Hcyixlcr 36,201 (1986), to be codified at 12 C.I- K.§ 225.2Mb)(8i.

.1. 72 1 j:i)l HAI KISIKVI: Hill I.I-.IIN 147 (1986).4. Exemption I) restricts giandtathered insurance activities to the

state in which the grandfathered hank holding company has itsprincipal place of business, any state immediately adjacent to thatstate, and any state or states in which insurance activities wereconducted by the bank holding company or any of its subsidiaries onMay 1. 1982. or were approved to be conducted by the bank holdingcompany or any of its subsidiaries on or before May I, 1982.12 U.S.C. § 1K43(CMKKD) and 12 C.I-'.K. § 21S.25(b)(X)(iv).


comments has expired, and the Board has consideredthe application and all comments received in light ofthe factors set forth in section 4 of the BHC Act.'

Protestants assert that the Board should not approvethe application because Suburban Bank is prohibitedby Maryland law from engaging directly in generalinsurance agency activities and thus, under section225.22(d)(2) of the Board's Regulation Y, could notacquire or retain control of a company engaged inthese activities. On this basis, Protestants claim Sub-urban Insurance was not lawfully held by SuburbanBancorp under the BHC Act or Regulation Y on May1, 1982, the grandfather date under exemption D, andthus Suburban Insurance does not qualify for grandfa-ther privileges under exemption D. Protestants alsocontend that, even if Suburban Insurance qualifies forgrandfather privileges under exemption D, thosegrandfather privileges would terminate if it were ac-quired by another bank holding company, such asSovran, which has no grandfather rights under theBHC Act."

Applicant responds that Suburban Bancorp and itsindirect subsidiary. Suburban Insurance, qualify underexemption D because Suburban Insurance was engag-ing in the insurance agency activities in question onMay 1, 1982, with the full knowledge and consent ofthe Board and the state regulatory authorities, and thatSuburban's grandfather privileges do not terminatewhen it is acquired by another bank holding company.Alternatively, Applicant contends that the Boardshould disregard the separate corporate identity of theinsurance agency subsidiary and treat its insuranceactivities as being conducted directly by the parentstate bank, and thus, in Applicant's view, outside thescope of the nonbanking and insurance restrictions insection 4 of the BHC Act. Finally, Applicant contendsthat the nonbanking provisions of section 4 of the BHCAct do not apply to nonbank subsidiaries of holdingcompany banks and thus Suburban Insurance maycontinue to sell insurance regardless of whether Sub-urban Insurance's activities comply with the Board'sstate bank regulation.

After considering the arguments of the Applicantand Protestants, as well as the views of the MarylandBank Commissioner and the Maryland InsuranceCommissioner, the Board has determined that Subur-ban Bancorp is entitled to retain indirect ownershipand control of Suburban Insurance under exemption Dand section 225.25(b)(8)(iv) of Regulation Y and thatthis entitlement does not terminate upon SuburbanBancorp's acquisition by Sovran. With regard to Ap-plicant's contention regarding the applicability of sec-tion 4 of the BHC Act to nonbanking companiescontrolled by holding company banks, the Board haspreviously determined that under the specific terms ofthe BHC Act, the acquisition and retention by holdingcompany banks of voting shares of nonbanking com-panies is governed by section 4 of the BHC Act.7 Asthis case reflects, the Board has had in place since1971 a regulation promulgated under the BHC Act thatgoverns the type of nonbanking activities in whichnonbank companies controlled by holding companybanks may engage. In light of the Board's determina-tion regarding Sovran's application for grandfatherrights under exemption D, however, the Board finds itunnecessary to address Applicant's alternative con-tentions, including its views on the scope of coverageof section 4 of the Act.

A. Suburban Insurance Qualifies ForGrandfather Privileges Under Exemption D ofthe Garn—St Germain Act

As indicated, exemption D by its terms provides anexception to the general prohibition on the conduct bybank holding companies of insurance activities forthose insurance agency activities engaged in by a bankholding company or any of its subsidiaries on May 1,1982, subject to certain geographic and functionallimitations.8

The record is clear that on the relevant date, May 1,1982, Suburban Insurance was engaged in insuranceagency activities and therefore meets the literal qualifi-cations for grandfather rights under the exemption.

5. The Board received comments from the following associationsopposing approval o\ the application ("Protestants"): the Indepen-dent Insurance Agents of America, the National Association ofCasualty and Surety Agents, the National Association of Surety BondProducers, the National Association of Life Underwriters, the Nation-al Association of Professional Insurance Agents, the Maryland StateAssociation of Life Underwriters, the PIA Association of Pennsylva-nia, Maryland and Delaware, the American Council of Life Insurance,the American Insurance Association, the National Association ofIndependent Insurers, and the Alliance of American Insurers.

6. In addition, Protestants contend Ihat Kxemption I) only applieswhere the activities were conducted pursuant to specific approvalfrom the Board under section 4(c)(8) of the Act anil that in any eventSuburban Bank may not under Maryland law control an alftliateengaged in general insurance agency activities.

7. Sec en. Security Pacific Corporation, 72 F f l i l RA1 R I . S I R V I :BUI I i:i IN 800 (1986), and the authorities referenced therein.

8. 12 U.S.C. § 1843(c)(8)(D). Specifically, paragraph (8) of section4(c) of the BHC Act provides an exception to the nonbankingprohibitions of section 4(a) of the Act for shares of companies engagedin activities that the Board has determined to be so closely related tobanking as to be a proper incident thereto. The (Jarn-St Germain Actamended this paragraph to provide that:

for purposes of this subsect ion, it is not closely related to banking ormanaging a controlling banks for a bank holding company to provideinsurance as principal, agent, or broker except . . . (I)) any insurance activitywhich was engaged in by the bank holding company or any of its subsidiarieson May 1, 1982, or which the Board approved for such company or any ol" itssubsidiaries on or before May I, 1982 . . . . 12 U .S .C . § 1843(c)(8).

674 Federal Reserve Bulletin [.} August 1987

The Board notes that the Senate Banking Committeereport associated with exemption D explains that theactivities grandlathered under this provision musthave been engaged in pursuant to and in accordancewith the applicable statutory and regulatory standardsin elfect on May I, 1982.''Thus, the question raised bythis application is whether Suburban Insurance's ac-tivities on that date were being conducted in confor-inance with applicable statutory and regulatory re-quirements for purposes of exemption 1).

Suburban Bancorp never applied under section4(c)(8) of the BHC Act to acquire or retain indirectownership or control of Suburban Insurance. Rather,when it applied to become a bank holding company in1972, Suburban Bancorp relied upon section 225.22(d)of the Board's Regulation Y as authority to acquireand retain indirect control of Suburban Insurance. Asnoted, this regulatory provision provides an exceptionto the general nonbanking prohibitions of the BHC Actby permitting a stale bank, without the Board's priorapproval, "to acquire or retain all . . . of the securitiesof a company that engages solely in activities in whichthe parent bank may engage, at locations which thebank may engage in the activity, and subject to thesame limitations as if the bank were engaging in theactivity directly." 12 C.F.R. § 225.22(d)(2).

In order to qualify under this regulation, the compa-ny in question must be engaged in activities that thebank could conduct directly.1" Protestants argue thatSuburban Insurance is not now, and was not on May I,1982, operating in accordance with this requirement ofthe Board's regulation because Maryland banking andinsurance law prohibit a Maryland bank from engagingdirectly in insurance agency activities."

The insurance activities of Suburban Bank may betraced back to 1922, when Prince George's Bank, apredecessor of Suburban Bank, sold insurancethrough licensed agents. Insurance sales by employeesof the bank or predecessor institutions continued, andin 1955 a formal insurance department was organizedwithin the bank. In 1964, Suburban Bank consolidated

9. S. Rep . N o . 5.%, 97th Cong . , 2d Sess . 39 (1982).10. See r . j , \ , Piedmont Carolina i'inancia! Services, 59 1 I I>1 KAI

R I SI RVI I t i i i n . r i N 766 (1973), w h e r e the Hoard s tated thai thisregulatory provis ion would permit a holding e o m p a n y to acqu i re ac o m p a n y engaged in insurance act ivi t ies that the bank could conduc tdirect ly . The Board specifically no ted , h o w e v e r , that this c o m p a n ycould not be acqui red under this provis ion , it' slate law permi t ted thebank to invest in sha res of a c o m p a n y engaging in this act iv i ty , but didnot permit the bank to engage in the act ivi ty direct ly .

11. P ro tes tan t s also assert that this provis ion o!" Regulat ion Y isinvalid. H o w e v e r , since this regulat ion was in effect on May I. I9N2,compl iance with it would satisfy the r equ i r emen t s ol' exempt ion I) ,regardless ol' later chal lenges to its validity.

the insurance department with an incorporated affiliateof the bank that was engaged in holding bank premis-es. Citizens Building, Inc. In 1984, the subsidiary'sname was changed to Suburban Insurance, Inc.

In connection with its application to become a bankholding company in 1972, Suburban Bancorp advisedthe Board that Suburban Bank controlled a generalinsurance agency, and Suburban has subsequentlykept the Hoard apprised of the affiliate's insuranceactivities. On September 12, 1972, the Federal Re-serve Bank of Richmond, in order to respond to aninquiry from a law firm representing certain insuranceinterests, inquired of the Maryland Bank Commission-er whether such insurance activities were permittedfor stale banks in Maryland. On September 14, 1972,the Maryland Deputy Bank Commissioner respondedby advising that the Department was aware of theinsurance activities of Suburban and "look no excep-tion." In 1986, in connection with (he processing ofSovran's application to acquire Suburban Bancorp,the Maryland Bank Commissioner advised the Boardthat that office had been aware of the insurance agencyactivities conducted by Suburban Bank directly andthrough Suburban Insurance and that "Suburban'sinsurance activities are and have been lawful activitiesfor a state-chartered bank in Maryland."

However, in 1987 the Maryland Insurance Commis-sioner informed the Board that Suburban Bank couldnot engage directly in insurance agency activitiesunder the State Insurance Code as it now stands and asit stood in 1982.l2 Under Maryland law, only a corpo-ration engaged primarily in the insurance business mayobtain an insurance license.13 The Commissioner ad-vised that because Suburban Bank is primarily en-gaged in the banking business, it could not be issued alicense to sell insurance and could not receive commis-sions for procuring or influencing the procurement ofinsurance sales.14 The Insurance Commissioner con-firmed that Suburban Bank could control a companythat holds a license to sell insurance and that SuburbanInsurance's current activities were fully consistentwith Maryland insurance laws.

While it now appears in retrospect that SuburbanInsurance's activities did not qualify for the exemptionunder the section 225.22(d)(2) of Regulation Y on May1, 1982, the overriding factor in this case is that theactivities were being conducted on that date and for

12. See letter of Mr. I'.dvvard .). Mulh, State insurance Commission-er, dated May IS, 1987. See (dso, (ioodman v. Perpetual IluildinxAss'n., 320 F . Supp . 20, 36 ( I ) . D . C . 1970).

13. Md. Ann . C o d e , art . 4XA, S 168(d) (1979), now codilied at Md.Aim. C o d e , art . 4XA, § !6K(e) (1986).

14. Sec Md, Ann . C o d e , ar t . 4HA, S§ 167(a) and (c) and I68(d)(1979); Md. Ann . C o d e , art . 48A, SS 167 and 16X(e)(2) (1986).


many years prior thereto with the knowledge of theBoard and state regulatory agencies and without adetermination by these agencies that the activitieswere not in accordance with applicable statutes andregulations. On this basis, the Board finds that Subur-ban Insurance qualifies for grandfather privileges un-der exemption D.ls

The purpose of a grandfather provision is to avoidthe disruption of settled and established relationshipsand to maintain the status quo. The legislative historyof exemption D specifically states that it is intended topermit the "continuation of previously authorizedinsurance activities."16 The insurance activities ofSuburban Insurance were authorized to the extent thatthese activities were conducted with the full knowl-edge of and without objection from the Board on May1, 1982, and are thus within the type of insuranceactivity Congress sought to protect in exemption D.While it appears that, based on information brought tothe Board's attention in 1987—16 years after Suburbanbecame a bank holding company and informed theBoard of its interest in Suburban Insurance—Subur-ban Insurance may not have technically qualifiedunder the Board's regulation, that determinationshould not be applied retroactively to deprive thecompany of a benefit which under the terms of thestatute are made available to any company engaged inthe activity on May I, 1982. Further, given the intentof the grandfather provision, it would not appearappropriate to upset settled and long-standing relation-ships which existed on the grandfather date with theknowledge of and without objection from appropriateregulatory authorities.

In this regard, the Board has considered the legisla-tive history of exemption D which, as noted, indicatesthat grandfather privileges were not intended for com-panies that were operating in violation of applicablestatutes and regulations. This legislative history doesnot, however, in the Board's view, indicate a Congres-sional intent to foreclose grandfather rights to holdingcompany subsidiaries that had been selling insurance

15. Protestants further contend that a Maryland bank is not autho-rized under Maryland banking law to sell insurance. As noted, theMaryland Bank Commissioner has advised the Board in writing ontwo occasions (in 1972 and in 1986) that Suburban Bank's insuranceactivities are authorized under Maryland banking law. The Commis-sioner has referred to a provision of the Maryland Code that permits astate bank to exercise all of the powers usual in carrying on a bankingbusiness. (Md. Financial Institutions Code S 3-2<)6(b)(l2)).

The present application does not require the Board to resolve thisdispute over permissible banking powers under Maryland law. Even ifthe Maryland Bank Commissioner's conclusion is erroneous, theBoard nevertheless believes that Suburban Insurance qualifies for thegrandfather privileges under exemption D in light of the facts andcircumstances relating to its conduct of insurance activities on May I,1982, as discussed in detail in this Order.

16. S. Rep. No. 536, 97th Cong. 2d Sess. 71 (1982).

on the grandfather date with the approval of statebanking and insurance regulatory authorities and withno determination by the Board that the activities of thesubsidiary were not in compliance with the BHC Actor Board's regulations under the Act. In such circum-stances, showing that the bank holding company wasnot operating in disregard of applicable statutes orregulations on the grandfather date, the holding com-pany would, in the Board's view, qualify for grandfa-ther rights under the terms and Congressional intent ofexemption D.

Finally, the Board believes that equitable consider-ations would also indicate that since the insuranceactivities of Suburban Insurance were known to thepublic since 1972, and were being conducted with theknowledge of the Board since that date, it would beunfair to now penalize Suburban Insurance for anyincorrect assumptions regarding state law. For exam-ple, in Independent Bankers Association of America v.Heimann,{1 the court held that an industry trade groupcould not challenge an interpretive ruling of the Comp-troller of the Currency which had been issued 12 yearsearlier and of which the trade group had knowledge.The court stated: "Equity will not protect a party thatthrough years of silence has created an impression ofacquiescence that has led others to make substantialfinancial commitments." Id. at 488.

Protestants also argue that in order to qualify forgrandfather privileges under exemption D, the bankholding company must have obtained specific approv-al from the Board under section 4(c)(8) of the BHC Actto conduct the particular activity and that the insur-ance activity must be directly related to an extensionof credit by an affiliate as opposed to the type ofgeneral insurance activity conducted by SuburbanInsurance. Because Suburban Insurance's activitieswere not specifically approved by Board order undersection 4(c)(8) of the Act and are not confined to thesale of credit-related insurance, Protestants claim Sub-urban Insurance does not qualify under exemption D.Neither the language of exemption D nor its legislativehistory supports this position.

The language of the statute states clearly and unam-biguously that it applies to any insurance activity thatwas engaged in on May 1, 1982, or which was ap-proved by the Board on or before that date. Thus, thelanguage itself does not limit grandfather rights to thesale of credit-related insurance or to insurance activi-ties that were specifically approved by the Board byorder under section 4(c)(8).

The legislative history of this section confirms thisinterpretation. A prior version of the statute (H.R.

17. 627 l\2d 486 (D.C. Cir. 1980).

676 Federal Reserve Bulletin N August 1987

2255, 96th Cong. 1st. Sess. (1979)) grandfathered in-surance activities which were engaged in on or beforea grandfather date, but only if such activities werespecifically approved by the Board. During hearingson this bill held by the House Banking C'omniittee, theAssociation of Bank Holding Companies protestedthat this grandfather provision "fails to take intoconsideration insurance activities which were "grand-fathered" in 1956, 1966 and 1970, and for which therewas never an occasion to have an application ap-proved by the Hoard.1'111 Following these hearings, theHouse Banking Committee reported out a version ofH.R. 2255 that deleted the requirement for Hoardapproval, and instead grandfathered any insuranceactivity lawfully engaged in on the specified grandfa-ther date. (H.R. Rep. No. 845, 96th Cong. 2d Scss,(1980)). This grandfather language was adopted, withmodifications, by the Senate (See, S. Rep. No. 923,96th Cong. 2d Sess (1980)).

In the Hoard's view, this legislative history makes itclear that the grandfather provision in exemption I)was not intended to be limited to the credit-relatedproperty and casualty insurance activities approved bythe Hoard under section 4(c)(X) of the Act prior toenactment of the Garn-St Germain Act.

Ji. Suburban Insurance's (IrandfatherPrivileges do not Terminate Upon itsAcquisition by a Non-drandfathered HankHolding Company

Under section 4 of the HHC Act, Sovran may notdirectly or indirectly acquire control of a nonbankcompany, unless the acquisition qualifies under one ofthe exceptions found in the Act. 12 U.S.C. 8 1843(a).In this case, Sovran is claiming the exception insection 4(e)(8)(D), which as noted grandfathers insur-ance activities conducted by a bank holding companyor any of its subsidiaries on May I, 1982. However, onthis date, Suburban Insurance was a subsidiary ofSuburban Bancorp, thus raising the issue whetherSuburban Insurance loses its grandfather rights underexemption I) when its parent holding company isacquired by another bank holding company.

Section 4(c)(8)(D) of the BHC Act does not specifi-cally deal with this question. The Senate Committeereport associated with this legislation, however, ex-plains that:

The authority to engage in activities under the grandfa-ther amendment only extends to the entity, be that theholding company itself or a subsidiary or subsidiariesthereof, which qualifies for the grandfathered activitiesS l i l t U S . 1 ' '

This legislative history as well as the terms of thestatute indicate a Congressional intent that the grand-father privilege be limited to the entity which qualifiesfor the grandfather privilege under exemption D, inthis case Suburban Insurance. In other words, exemp-tion D rights attach to the entity actually conductingthe activity on the grandfather date. As long as it isonly that grandfalhered subsidiary that conducts theactivity and not some other affiliate, the requirementsof exemption I) are satisfied. Thus, in the Hoard'sview, the intent of the statute is that the grandfatheredsubsidiary continues to be able to engage in theactivity, even if acquired by another bank holdingcompany so long as the subsidiary complies with thegeographic and functional limitations proscribed inexemption D.

The Board believes this conclusion is consistentwith the overall intent of the grandfather provision topermit the continuation of established relationships.There is nothing in the legislative history that suggeststhat a company that was engaged in an insuranceactivity under the BHC Act for many years shouldcease the activity because it is acquired by anotherbank holding company, when the acquisition wouldnot add an additional insurance competitor or permitthe grandfathered subsidiary lo expand its activities.As noted, Suburban Insurance could not expand itsinsurance activities to any location or in any mannerother than as permitted under exemption D beforeSuburban's acquisition by Sovran. In other words, theacquisition does not disturb the status quo insofar asthe insurance activities of Suburban Insurance areconcerned.

On two prior occasions, the Board has determinedthat grandfather privileges under exemption D do notterminate when the grandfathered entity is acquired byanother bank holding company, provided the insur-ance activities continue to be conducted by the subsid-iary that actually conducted the activity on the grand-father date and would not be expanded to otheraffiliates of the bank holding company.

In 1983, the Hoard allowed Seafirst Corporation tocontinue lo sell credit-related property and casualtyinsurance after its acquisition by BankAmerica.20 The

IK. Hearings- on II.li. ,?.?.5.'i hi'fort' the Suhcoinui. on 1'inancialInstitutions Su/tcrvisioti, Regulation and Insurant/' oj the HouseCoinni, on Hanking, linanre and Vrluui AJJairs, % t h ( o n ^ . Isl Scss .2X.S ( 1 9 7 9 ) .

19. S . H e p . N o . 5.? 6 , 9 7 t h C o i l ) ; . , 2il S c s s . 4 0 ( 1 9 X 2 ) .

2 0 . llnnkAineriea Corporation, 6 9 l i D I - . I I A I R I S I U V I : B u i I.I T I N

M I X ( 1 9 X 3 ) .


Board noted that Seafirst was entitled under the termsof exemption D to continue to sell the insurancebecause it was lawfully engaged in the activity on May1, 1982, pursuant to a prior Board approval. The Boardconcluded that Seafirst could continue to engage inthat particular activity after its acquisition by Bank-America because Seafirst would remain an indepen-dent and separate subsidiary of BankAmerica and theactivity would not be conducted by any other subsid-iary of BankAmerica or through any of its otheroffices. The Board concluded that under the circum-stances presented there, the grandfathered insuranceactivity would not be transferred to any other entity orconducted beyond the scope Congress intended inexemption D.

Similarly, in late 1983, the Board permitted the FujiBank, Ltd. to acquire Walter Heller Inc.'s commercialfinance subsidiary, including a subsidiary that soldproperty and casualty insurance in connection withloans by the finance company.21 The Board noted thatthe Heller subsidiary was entitled to grandfather rightsunder exemption D because it received Board approv-al to engage in the activity before May 1, 1982. As inthe BankAmerica case, the Board allowed the subsid-iary, after its acquisition by Fuji, to continue toconduct the grandfathered activity, noting that theinsurance agency would remain an independent andseparate subsidiary of Fuji, would conduct activitiesonly from its office in Chicago and only in connectionwith loans by the finance company."

The Board notes that it has in the past required thetermination of grandfather privileges under section4(a) of the BHC Act when the company entitled tothose rights was acquired by another company.2'However, unlike the situation under exemption D, theterms and legislative history of the grandfather provi-sion of section 4(a) indicate that grandfather rightswere limited only to those companies that were initial-ly brought under the terms of the Bank HoldingCompany Act by the 1970 amendments to that Act. Asdiscussed above, the terms of exemption D and itslegislative history indicate that a grandfathered bankholding company would be permitted to continue toconduct insurance activities so long as the grandfath-

21. Fuji Dank, Limited, 69 I;i:i>r:RAi RI-SI-RVI-. BUI.I.I TIN 50 (1983).22. The Board relied upon the above legislative history which

indicates that grandfather rights under exemption 13 accrue to theentity actually conducting the relevant insurance agency activity, inthat case the nonbunk subsidiary of Heller,

23. Sec Maryland NationallAmerican Security Corporation, 73FI;DI.RAI. Ri SliKVi: Bui.I.II IN 310 (1987), where the Board approvedthe acquisition upon the condition that the applicant divest grandfath-ered nonbanking activities conducted by the acquired bank holdingcompany.

ered activities are conducted by the subsidiary thatwas conducting the activity on May 1, 1982.

Based on these factors, the Board concludes thatSovran may retain indirect ownership and control ofSuburban Insurance, pursuant to section 4(c)(8)(D),provided that Suburban's general insurance agencyactivities are limited to those conducted on the grand-father date and that these activities are conducted onlyby Suburban Insurance, which must remain an inde-pendent and separate subsidiary of Sovran. Consistentwith the provisions of exemption D, Suburban Insur-ance must limit its general insurance agency activitiesto the state in which its parent holding company,Suburban Bancorp, maintained its principal place ofbusiness on May 1, 1982 (/. e. Maryland), statesadjacent to Maryland including the District of Colum-bia, and any additional states in which SuburbanInsurance conducted insurance agency activities onMay 1, 1982. See 12 U.S.C. § 1843(c)(8)(D) and12 C.F.R. § 225.25(b)(8)(iv).

C. Other Issues

Protestants question whether Suburban Bank may belawfully affiliated with an insurance agency underMaryland banking law, even if the exemption D provi-sion applies. The Protestants note that the MarylandBanking Code provides that, except with the priorapproval of the State Bank Commissioner, no bankinginstitution may have an affiliate. (Md. Financial Insti-tutions Code § 5-403 (1986)). The Bank Commissionermay approve an affiliation with a company providinginsurance services, but only if the approval imposesthe same conditions that federal law requires or per-mits for a national bank. (Id.) Since national banks arenot currently authorized to conduct the types of gener-al insurance agency activities at issue here (except intowns with populations of 5,000 or less), Protestantsconclude that Suburban Bank cannot be lawfully affili-ated with a company engaging in such insuranceagency activities.

On March 12, 1987, the Maryland Bank Commis-sioner advised the Board that Suburban Bank's con-trol of the insurance affiliate was permissible under theMaryland Banking Code. Under the Maryland Bank-ing Code, restrictions on bank affiliations do not affectany affiliate, if the affiliation existed on June 1, 1935.(Md. Financial Institutions Code § 5-402 (1986)). Inthis instance, since the affiliation in question can betraced back to 1932, it would appear to be exempt fromthe provisions in the Maryland Code limiting affili-ations of Maryland banks. Based on this analysis ofMaryland law, the Board has determined to accept theMaryland Bank Commissioner's conclusion with re-spect to the consistency of this particular affiliation

678 Federal Reserve Hullctin LI August 1987

under Maryland law insofar as it applies to the conductof insurance agency activities that the affiliate hasconducted since 1964.

I). Public Benefits

While the Hoard has determined that Suburban Insur-ance's general insurance activities are permissibleunder section 4(c)(8)(D) of the BHC Act and section225.25(b)(8)(iv) of Regulation Y, the Hoard must alsodetermine that these activities are a proper incident tobanking under section 4(c)(8) of the Act. In makingthis determination, the Board must consider whetherthe performance of the activity can reasonably beexpected to produce benefits to the public that out-weigh possible adverse effects.

The Hoard believes that approval of this applicationwill maintain competition in the provision of insuranceagency services in the area served by Suburban Insur-ance and will avoid disrupting established relation-ships between Suburban Insurance and its customers.The Hoard finds that there is no evidence in the recordto indicate that approval of this proposal would resultin undue concentration of resources, unfair or de-creased competition, conflicts of interest, unsoundbanking practices, or other adverse effects. Accord-ingly, the Hoard has determined that the balance of thepublic interest factors it must consider under section4(c)(8) of the Act is favorable and consistent withapproval of the application.

E. Request for Hearing

Protestants have requested that the Hoard conduct ahearing on the application in order to determine thehistorical facts that underlie Suburban's entry into theinsurance field, the status of Maryland law, and Sov-ran's plans to expand its insurance operations in thefuture. Under section 4 of the Bank Holding CompanyAct, a protestant is not entitled to a hearing on everyapplication. A hearing is only required when there arematerial issues of fact in dispute.24

In this ease, there are no material issues of fact indispute. The historical facts relating to Suburban'sentry into the insurance field have been established,and no specific allegation has been made that thesefacts are in error. The issues relating to Maryland lawand its interplay with the Bank Holding Company Actare legal issues, not factual, and therefore a hearing isnot required to resolve this matter. With respect to thefuture activities of Suburban Insurance, exemption Dspecifically limits the geographic and functional scopeof the grandfathered insurance activities, and thusSovran's future plans with respect to these activitiesare circumscribed by the statute. Accordingly, theBoard has determined that a hearing is not required inthis case and hereby denies prolestants' request for ahearing.-5

Based on the foregoing, the Board has determinedthat the application under section 4 should be, andhereby is, approved. This determination is subject toall of the conditions set forth in Regulation Y, and therequirement that the insurance activities are conduct-ed solely by Sovran Insurance, which must remain anindependent subsidiary of Suburban Bancorp. It isalso subject to the Board's authority to require suchmodification or termination of activities of the bankholding company or any of its subsidiaries as theBoard finds necessary to assure compliance with, andprevent evasions of, the provisions and purposes ofthe HHC Act and the Board's regulations and ordersissued thereunder.


Voting lor this action: Cluiirman Volcker and GovernorsSeger, Angell, and Kelley. Absent ami no! voling: GovernorsJohnson and Heller.

|SF.A].|

Wll.l.IAM W. Wll.liSSecretary of the Board

24. ('otiiH'tlit ill Hankers /l.s.sx, r . Hoard oj (itnernors, 627 1' ,2d 24.^(l).('. Cir. 19X0).

25. One protestaunder tiie net puhlrelating to the nauactivities. [ lowevelimited by statute tsubject to the fi4(c)(8)(l)}and the IJ.noi believe a hearing is appropriate or necessary with regard to thisclaim.

t makes the claim that a public hearing is requiredic benefits standard in the Act because of issuesre and extent of Suburban Insurance's proposed

as noted Suburban Insurance's activities will bethose in which i( was engaged on May I, 19X2,

ctional and geographic restrictions in sectionKird's Regulalion Y. Accordingly, the Hoard does


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 uponrequest to the Reserve Banks.

Section 3

Applicant

Americorp,Ventura, California

Arkansas Union Bankshares,Inc.,Benton, Arkansas

BancAlabama, Inc.,Huntsville, Alabama

Branch Corporation,Wilson, North Carolina

Buffalo Bancshares, Inc.,Kansas City, Missouri

Butler Point, Inc.,Catlin, Illinois

Cando Holding Company, Inc.,Cando, North Dakota

CB Bancshares, Inc.,Fort Valley, Georgia

CBE, Inc.,Elkhorn, Wisconsin

CCB Financial Corporation,Sandy, Oregon

Central Bancshares of theSouth, Inc.,Birmingham, Alabama

Central Bank Corporation,Sault Ste. Marie, Michigan

Chemical Financial Corporation,Midland, Michigan

Citizens' Capital Corporation,Robcrtsdale, Alabama

Citizens Corporation,Columbia, Mississippi

CNB Bancshares, Inc.,Evansville, Indiana

Commonwealth BancsharesCorporation,Williamsport, Pennsylvania

Cosmopolitan FinancialServices, Inc.,Countryside, Illinois

Coteau Hills Company,Gackle, North Dakota

Bank(s)

American Commercial Bank,Ventura, California

Union Bancshares of Benton,Inc.,Benton, Arkansas

BankAlabama—Huntsville,Huntsville, Alabama

Community Bancorporation, Inc..Greenville, South Carolina

O'Bannon Banking Co.,Buffalo, Missouri

The First National Bank ofCatlin,Catlin, Illinois

The First Bank Cando, N.A.,Cando, North Dakota

Cook Banking Company,Cochran, Georgia

Community Bank of Elkhorn,Elkhorn, Wisconsin

Clackamas County Bank,Sandy, Oregon

Central Bank of Shelby County,Shelby County, Alabama

Central Savings Bank,Sault Ste. Marie, Michigan

Manufacturers Bank of Bay City,Bay City, Michigan

Citizens' Bank, Inc.,Robertsdale, Alabama

Citizens Bank,Columbia, Mississippi

Wabash Valley Bank ofVincennes,Vincennes, Indiana

County Bancorp, Inc.,Montrose, Pennsylvania

OLD CANAL BANKSHARESII, INC.,Lockport, Illinois

First State Bank of Gackle,Gackle, North Dakota

ReserveBank

San Francisco

St. Louis

Atlanta

Richmond

St. Louis

Chicago

Minneapolis

Atlanta

Chicago

San Francisco

Atlanta

Minneapolis

Chicago

Atlanta

Atlanta

St. Louis

Philadelphia

Chicago

Minneapolis

Effectivedate

June 2, 1987

June 15, 1987

June 15, 1987

June 12, 1987

June 24, 1987

June 2, 1987

May 26, 1987

June 1, 1987

June 5, 1987

May 21, 1987

May 29, 1987

June 4, 1987

May 27, 1987

June 11, 1987

June 12, 1987

May 29, 1987

May 22, 1987

June 25, 1987

May 20, 1987

680 Federal Reserve Bulletin LJ August 1987

Section 3—Continued

Applicant

DS Bancor, Inc.,Derby, Connecticut

D.S.B. Bankshares, Inc.,Randolph, Wisconsin

Eagle Fidelity, Inc.,Williamstown, Kentucky

H.C.S.B. Holding Company,Inc.,Mary Hsther, Florida

Hscrow Corporation ofAmerica, Inc.,Pennock, Minnesota

1' & M Bancorporation, Inc.,Kaukauna, Wisconsin

Farmers Enterprises, Inc.,Albert, Kansas

I'IN, Inc.,Mesa, Arizona

First Albany Bancshares, Inc.,Albany, Texas

First Bancorp of Louisiana,Inc.,West Monroe, Louisiana

First Coleman Bancshares, Inc.Coleman, Texas

First Dodge City Bancshares,Inc.,Dodge City, Kansas

First National Bancorp,Gainesville, Georgia

The First National Bankshares,Inc.,Tuxumcari, New Mexico

First National Corporation,Grand Forks, North Dakota

First Peterborough Bank Corp.,Peterborough,New Hampshire

First State Bancorporation,Inc.,Hlkins, West Virginia

First Wisconsin Corporation,Milwaukee, Wisconsin

Bank(s)

The Derby Savings Bank,Derby, Connecticut

Dairyman's State Bank,Randolph, Wisconsin

The Bank of Williamslown,Williamstown, Kentucky

Fmerald Coast State Bank,Mary Esther, Florida

Madelia Holding Corp.,Madelia, Minnesota

New London National Bank,New London, Wisconsin

Charter West Bank, N.A.,Great Bend, Kansas

American National Bank ofAfton,Alton, Wyoming

The First National Bank ofAlbany,Albany, Texas

First National Bank of WestMonroe,West Monroe, Louisiana

First Coleman National Bank ofColeman,Coleman, Texas

Metro Bancshares, Inc.,Broken Arrow, Oklahoma

Banks County FinancialCorporation,Homer, Georgia

The First National Bank of SantaRosa,Santa Rosa, New Mexico

The First National Bank inTucumcari,Tueumcari, New Mexico

West Fargo Stale Bank,West Fargo, North Dakota

The First National Bank ofPeterborough,Peterborough, New Hampshire

First State Bank Hlkins, Inc.,Iilkins, West Virginia

North Shore Bancorp, Inc.,Northbrook, Illinois

ReserveBank

Boston

Chicago

Cleveland

Atlanta

Minneapolis

Chicago

Kansas City

Kansas City

Dallas

Dallas

Dallas

Kansas City

Atlanta

Dallas

Effectivedate

June 10, 1987

June 16, 1987

May 29, 1987

June 17, 1987

June 5, 1987

June 15, 1987

June 2, 1987

May 28, 1987

June 22, 1987

June 10, 1987

June 17, 1987

May 29, 1987

May 18, 1987

May 26, 1987

Minneapolis

Boston

Richmond

Chicago

June 9, 1987

May 18, 1987

May 29, 1987

May 29, 1987



Applicant

FNB Bancshares, Inc.,Blue Earth, Minnesota

Granite State Bankshares, Inc.,Keene, New Hampshire

GreatBanc, Inc.,Aurora, Illinois

Greater Chicago FinancialCorp.,Chicago, Illinois

Hometown Bancorporation,Inc.,Darien, Connecticut

Honat Bancorp, Inc.,Honesdale, Pennsylvania

Illinois Regional Bancorp, Inc.,Elmhurst, Illinois

Independent American FinancialCorporation,Harrisburg, Pennsylvania

Independent Banks of Virginia,Inc.,Norfolk, Virginia

Iron and Glass Bancorp, Inc.,Pittsburgh, Pennsylvania

Kilgore Bancshares, Inc.,Troup, Texas

Landmark BancsharesCorporation,Clayton, Missouri

Lemont Bancorp, Inc.,Chicago, Illinois

Lewisburg BancsharesCorporation,Lewisburg, Kentucky

Liberty Bancshares Inc.,Montgomery, West Virginia

Magnolia State CapitalCorporation,Magee, Mississippi

The Marine Corporation,Milwaukee, Wisconsin

Mark Twain Bancshares, Inc.,St. Louis, Missouri

Marrowbone Bancorp, Inc.,Marrowbone, Kentucky

National Security Bank HoldingCompany,Newport, Oregon

Bank(s)

The First National Bank of BlueEarth,Blue Earth, Minnesota

Granite Bank,Amherst, New Hampshire

Evco, Inc.,Chicago, Illinois

Austin Bank of Chicago,Chicago, Illinois

The Bank of Darien,Darien, Connecticut

The Honesdale National Bank,Honesdale, Pennsylvania

PLUM GROVEBANCORPORATION, INC.,Rolling Meadows, Illinois

The Dauphin National Bank,Dauphin, Pennsylvania

Heritage Bank of NorthernVirginia,McLean, Virginia

Iron and Glass Bank,Pittsburgh, Pennsylvania

City National Bank of Kilgorc,Kilgore, Texas

Christian County National Bank,Ozark, Missouri

The Lemont National Bank,Lemont, Illinois

Lewisburg Banking Company,Lewisburg, Kentucky

The National Bank of Ansted,Ansted, West Virginia

State Bank and Trust Company,Collins, Mississippi

Banco di Roma,Chicago, Illinois

Edwardsville National Bank andTrust Company,Edwardsville, Illinois

Bank of Marrowbone,Marrowbone, Kentucky

National Security Bank,Newport, Oregon

ReserveBank

Minneapolis

Boston

Chicago

Chicago

New York

Philadelphia

Chicago

Philadelphia

Richmond

Cleveland

Dallas

St. Louis

Chicago

St. Louis

Richmond

Atlanta

Chicago

St. Louis

St. Louis

San Francisco

Effectivedate

May 15, 1987

June 1, 1987

May 21, 1987

May 19, 1987

June 19, 1987

June 9, 1987

June 5, 1987

May 22, 1987

June 12, 1987

June 8, 1987

June 19, 1987

June 11, 1987

June 19, 1987

June 19, 1987

May 29, 1987

June 15, 1987

May 19, 1987

June 12, 1987

June 8, 1987

June 1, 1987

682 Federal Reserve Bulletin [J August 19X7


Applicant

Nebraska Capital Corporation,Lincoln, Nebraska

Northern Bancorp, Inc.,Wobnrn, Massachusetts

Northwest Georgia FinancialCorporation,Dallas, Georgia

Norwood Associates 11,Hackensack, New Jersey

Pearl City Bancorp,Pearl City, Illinois

Peoples Bancorp Inc.,Marietta, Ohio

Peoples Bancshares, Inc.,Clanton, Alabama

Peoples Ltd.,Wyalusing, Pennsylvania

P.T.C. Bancorp,Brookville, Indiana

Regional Bancorp, Inc.,Medf'ord, Massachusetts

Kolla Holding Company, Inc.,Rolla, North Dakota

Security National Bancshares ofSapulpa, Inc.,Sapulpa, Oklahoma

Sharon Bancshares, Inc.,Sharon, Tennessee

Southeast Banking Corporation,Miami, Florida

Southern National Corporation,Lumberton, North Carolina

South Trust Corporation,Birmingham, Alabama

SouthTrust Corporation,Birmingham, Alabama

The Tampa Banking Company,'Tampa, Florida

Three Rivers Bancshares, Inc.,Milan, Georgia

Union Planters Corporation,Memphis, 'Tennessee

Western Security Bancorp,Burbank, California

Bank(s)

Havelock Bank,Lincoln, Nebraska

Woburn Bank and 'TrustCompany,Woburn, Massachusetts

Alcovy Banking Company,Mansfield, Georgia

Midland Bancorporation,Paramus, New Jersey

The Slate Bank of Pearl City,Pearl City, Illinois

'The First National Bank ofChesterhill,Chesterhill, Ohio

The Peoples .Savings Bank,Clanton, Alabama

Peoples State Bank of Wyalusing,Wyalusing, Pennsylvania

Arlington Bane Corporation,Arlington, Indiana

Medford Savings Bank,Medford, Massachusetts

The First Bank of Rolla,Rolia, North Dakota

Security National Bank ofSapulpa,Sapulpa, Oklahoma

City Stale Bank,Martin, 'Tennessee

'The West Florida Bank,Pensacola, Florida

Liberty National Bank,Charleston, South Carolina

Bank of Pensacola,Pensacola, Florida

Central Bank of Vokisia County,South Daytona, Florida

The Bank of Tampa,Tampa, Florida

Bank of Milan,Milan, Georgia

First BancCrossville, Inc.,Crossville, 'Tennessee

Western Security Interim Bank,National Association,Burbank, California

Western Security Bank, NationalAssociation,Burbank, California

ReserveBank

Kansas City

Boston

Atlanta

New York

Chicago

Cleveland

Atlanta

Philadelphia

Chicago

Boston

Minneapolis

Kansas City

St. Louis

Atlanta

Richmond

Atlanta

Atlanta

Atlanta

Atlanta

St. Louis

San Francisco

Fllectivedate

May 22, 1987

June 25, 1987

June 5, 1987

May 22, 1987

May 27, 1987

June 23, 1987

May 27, 1987

May 15, 1987

June 2, 1987

June 18, 1987

May 19, 1987

May 21, 1987

June 4, 1987

June 1, 1987

May 29, 1987

May 22, 1987

May 22, 1987

June 5, 1987

June 17, 1987

May 29, 1987

June 19, 1987


Section 4

Applicant

Alex Brown Financial Group,Sacramento, California

Banco Nacional de Mexico,S.N.C.,Mexico City, Mexico

Banamex Holding Company,Los Angeles, California

Ammex Holding Company,Los Angeles, California

Ellinwood Bankshares, Inc.,Ellinwood, Kansas

Fidelcor, Inc.,Philadelphia, Pennsylvania

First Union Corporation,Charlotte, North Carolina

F.N.B. Corporation,Hermitage, Pennsylvania

Lake Ariel Bancorp,Lake Ariel, Pennsylvania

O'Neill Properties, Inc.,Minneapolis, Minnesota

Security Bancshares, Inc.,Des Arc, Arkansas

United Community FinancialCorporation,Wayland, Michigan

Westdeutsche LandesbankGirozentrale,Dusseldorf, West Germany

NonbankingCompany/Activity

River City Money ManagementCompany,Sacramento, California

issuance of consumer-typepayment instruments

ReserveBank

EffectiveDate

Ellinwood Insurance Agency,Inc.,Ellinwood, Kansas

sale of general insuranceLazere Financial Corporation,

New York, New YorkBusiness Life Insurance

Company of America,Charlotte, North Carolina

Northwestern ServicesCorporation,Charlotte, North Carolina

Mortgage Service Corporation ofPittsburgh,Pittsburgh, Pennsylvania

L.A. Lease, Inc.Lake Ariel, Pennsylvania

personal property leasingMeierhenry Agency, Inc.,

O'Neill, Nebraskasale of general insuranceSecurity Insurance Agency of

Des Arc, Inc.,Des Arc, Arkansas

Mclntyre & AssociatesInsurance,Clarksville, Michigan

general insurance activitiesVertex Business Systems, Inc.

New York, New Yorkdata processing activities

San Francisco May 22, 1987

San Francisco April 27, 1987

Kansas City

Philadelphia

Richmond

Cleveland

Philadelphia

Kansas City

St. Louis

Chicago

New York

June 17, 1987

June II, 1987

June 23, 1987

June 19, 1987

May 19, 1987

June 5, 1987

June 22, 1987

May 26, 1987

June 12, 1987


Sections 3 and 4

Applicant

First of America BankCorporation,Kalamazoo, Michigan

First of AmericaBancorporation-Illinois, Inc.Libertyville, Illinois

Bank(s)/NonbankingCompany

BancServe Group, Inc.,Rockford, Illinois

Boonc State Bank,Belvidere, Illinois

City National Bank & Trust Co.of Rockford,Rockford, Illinois

BancServe Credit Life InsuranceCompany,Rockford, Illinois

ReserveBank

Chicago

EffectiveDate

May 29, 1987

ORDERS APPROVED UNDER BANK MERCER ACT

Bv Federal Reserve Banks

Applicant

Chase Bank of Ohio,Mentor, Ohio

Sandusky Interim Bank,Sandusky, Ohio

Bank(s)

Atrium I BranchCincinnati, Ohio

Bank One, Milford, N.A.,Milford, Ohio

The Citizens Banking Company,Sandusky, Ohio

ReserveBank

Cleveland

Cleveland

EffectiveDate

June 18, 1987

May 28, 1987

PENDING CASES INVOLVING THE BOARD OF GOVERNORS

This list of pending cases does not include suits against the Federal Reserve Banks in which the Hoard ofGovernors is not named a party.

Securities Industry Association v. Hoard of Gover-nors, et al. No. 87-4041 and consolidated cases(2d Cir., filed May I, 1987).

Securities Industry Association v. Hoard of Gover-nors, et al., No. 87-1169 (D.C. Cir., tiled April 17,1987).

Jones v. Volcker, No. 87-0427 (D.D.C., filed Feb. 19,1987).

Hankers Trust New York Corp. v. Hoard of Governors,No. 87-1035 (D.C. Cir., filed Jan. 23, 1987).

Securities Industry Association v. Hoard of Gover-nors, et al., No. 87-1030 (D.C.Cir., filed Jan. 20,1987).

Grimm v. Board of Governors, No. 87-4006 (2nd Cir.,filed Jan. 16, 1987).

Independent Insurance Agents of America, et al. v.Hoard of Governors, Nos. 86-1572, 1573, 1576(D.C. Cir., filed Oct. 24, 1986).

Securities Industry Association v. Hoard of Gover-nors, No. 86-2768 (D.D.C., filed Oct. 7, 1986).

Independent Community Hankers Association ofSouth Dakota v. Hoard of Governors, No. 86-5373(8th Cir., filed Oct. 3, 1986).

Jenkins v. Hoard of Governors, No. 86-1419 (D.C.Cir., filed July 18, 1986).

Securities Industry Association v. Hoard of Gover-nors, No. 86-1412 (D.C. Cir., filed July 14, 1986).


Adkins v. Board of Governors, No. 86-3853 (4th Cir.,filed May 14, 1986).

Optical Coating Laboratory, Inc. v. United States,No. 288-86C (U.S. Claims Ct., filed May 6, 1986).

CBC, Inc. v. Board of Governors, No. 86-1001 (10thCir., filed Jan. 2, 1986).

Myers, et al. v. Federal Reserve Board, No. 85-1427(D. Idaho, filed Nov. 18, 1985).

Souser, et al. v. Volcker, et al., No. 85-C-2370, et al.(D. Colo., filed Nov. 1, 1985).

Podolak v. Volcker, No. C85-0456, et al. (D. Wyo.,filed Oct. 28, 1985).

Kolb v. Wilkinson, et al., No. C85-4184 (N.D. Iowa,filed Oct. 22, 1985).

Farmer v. Wilkinson, et al., No. 4-85-CIVIL-1448(D. Minn., filed Oct. 21, 1985).

Kurkowski v. Wilkinson, et al., No. CV-85-0-916(D. Neb., filed Oct. 16, 1985).

Alfson v. Wilkinson, et al., No. A1-85-267 (D. N.D.,filed Oct. 8, 1985).

Independent Community Bankers Associaton of SouthDakota v. Board of Governors, No. 84-1496 (D.C.Cir., filed Aug. 7, 1985).

Urwyler, et al. v. Internal Revenue Service, et al., No.85-2877 (9th Cir., filed July 18, 1985).

Wight, ct al. v. Internal Revenue Service, et al., No.85-2826 (9th Cir., filed July 12, 1985).

Florida Bankers Association v. Board of Governors,No. 84-3883 and No. 84-3884 (11th Cir., filed Feb.15, 1985).

Florida Department of Banking v. Board of Gover-nors, No. 84-3831 (11th Cir., filed Feb. 15, 1985),and No. 84-3832 (11th Cir., filed Feb. 15, 1985).

Lewis v. Volcker, et al., No. 86-3210 (6th Cir., filedJan. 14, 1985).

Brown v. United States Congress, et al., No. 84-2887-6(IG) (S.D. Cal., filed Dec. 7, 1984).

Melcher v. Federal Open Market Committee, No.84-1335 (D.D.C., filed Apr. 30, 1984).

Al

Financial and Business Statistics

CONTENTS

Domestic Financial Statistics

MONEY STOCK AND BANK CREDIT

A3 Reserves, money stock, liquid assets, and debtmeasures

A4 Reserves of depository institutions, ReserveBank credit

A5 Reserves and borrowings—Depositoryinstitutions

A6 Selected borrowings in immediately availablefunds—Large member banks

POLICY INSTRUMENTS

A7 Federal Reserve Bank interest ratesA8 Reserve requirements of depository institutionsA9 Federal Reserve open market transactions

FEDERAL RESERVE BANKS

A10 Condition and Federal Reserve note statementsAll Maturity distribution of loan and security

holdings

MONETARY AND CREDIT AGGREGATES

A12 Aggregate reserves of depository institutionsand monetary base

A13 Money stock, liquid assets, and debt measuresA15 Bank debits and deposit turnoverA16 Loans and securities—All commercial banks

COMMERCIAL BANKING INSTITUTIONS

A17 Major nondeposit fundsA18 Assets and liabilities, last-Wednesday-of-month

WEEKLY REPORTING COMMERCIAL BANKS

Assets and liabilitiesA19 All reporting banksA20 Banks in New York CityA21 Branches and agencies of foreign banksA22 Gross demand deposits—individuals,

partnerships, and corporations

FINANCIAL MARKETS

A23 Commercial paper and bankers dollaracceptances outstanding

A23 Prime rate charged by banks on short-termbusiness loans

A24 Interest rates—money and capital marketsA25 Stock market—Selected statisticsA26 Selected financial institutions—Selected assets

and liabilities

FEDERAL FINANCE

A28 Federal fiscal and financing operationsA29 U.S. budget receipts and outlaysA30 Federal debt subject to statutory limitationA30 Gross public debt of U.S. Treasury—Types and

ownershipA31 U.S. government securities dealers—

TransactionsA32 U.S. government securities dealers—Positions

and financingA33 Federal and federally sponsored credit

agencies—Debt outstanding

SECURITIES MARKETS ANDCORPORATE FINANCE

A34 New security issues—State and localgovernments and corporations

A35 Open-end investment companies—Net sales andasset position

A35 Corporate profits and their distribution

A2 Federal Reserve Bulletin [J August 1987

A36 Nonfinancial corporations—Assets andliabilities

A36 Total nont'arm business expenditures on newplant and equipment

A37 Domestic finance companies—Assets andliabilities and business credit

A54 Foreign official assets held at Federal ReserveHanks

A55 Foreign branches of U.S. banks—Balance sheetdata

A57 Selected U.S. liabilities to foreign officialinstitutions

REAL ESTATE

A38 Mortgage marketsA39 Mortgage debt outstanding

CONSUMER INSTALLMENT CREDIT

A40 Total outstanding and net changeA41 Terms

REPORTED IIY BANKS IN THE UNITED STATES

A57 Liabilities to and claims on foreignersA58 Liabilities to foreignersA60 Hanks' own claims on foreignersA6I Banks' own and domestic customers' claims on

foreignersA6I Banks' own claims on unalfiliated foreignersA62 Claims on foreign countries—Combined

domestic offices and foreign branches

FLOW OF FUNDS

A42 Funds raised in U.S. credit marketsA43 Direct and indirect sources of funds to credit

markets

REPORTED HY NONBANKING BUSINESSENTERPRISES IN THE UNITED STATES

A63 Liabilities to unaffiliated foreignersA64 Claims on unalfiliated foreigners

Domestic Nonfinancial Statistics

SELECTED MEASURES

A44 Non/inancial business activity—Selectedmeasures

A45 Labor force, employment, and unemploymentA46 Output, capacity, and capacity utilizationA47 Industrial production—Indexes and gross valueA49 Housing and constructionA50 Consumer and producer pricesA5\ Gross national product and incomeA52 Personal income and saving

International Statistics

SECURITIES HOLDINGS AND TRANSACTIONS

A65 foreign transactions in securitiesA66 Marketable U.S. Treasury bonds and notes-

Foreign transactions

INTEREST AND EXCHANGE RATES

A67 Discount rates of foreign central banksA67 Foreign short-term interest ratesA68 Foreign exchange rates

A69 Guide to Tabular Presentation,Statistical Releases, and Special'Tables

SUM MAR Y STATISTICS

A53 U.S. international transactions—SummaryA54 U.S. foreign tradeA54 U.S. reserve assets

SPECIAL TABLES

A70 U.S. branches and agencies of foreign banks,March 31, 1987

Money Stock and Bank Credit A3

1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES

Item

Monetary and credit aggregates(annual rates of change, seasonally adjusted in percent)1

1986

03 Q4 Ql'

1987

Apr. May

Reserves of depositary institutions2

1 Total '2 Required3 Nonborrowed4 Monetary base-1

Concepts of money, liquid assets, and debt*5 Ml '6 M27 M38 L9 Debt

Nontransaclion components10 M25

11 M3 only*

Time and savings depositsCommercial banks

12 Savings7

13 Small-denomination timcH

14 Large-denomination time910

Thrift institutions15 Savings7

16 Small-denomination time ,17 Large-denomination time9

Debt components4

18 Federal19 Nont'ederal20 Total loans and securities at commercial banks"

18.720.718.69.1

15.59.4H.77.1

10.0'

7.55.9'

21. (21.921.39.7

16.510.69.78.1

12.6

8.C6.2

13.4-2.5-3 .5

16.0.3

11.2

11.69.5'4.1

25.0-7.5-1.5

21.0-3.4

2.8

14.512.1'10.6

24.322.825.3l i t )

17.09.28.08.2

12.8'

6.63.1'

36.9-10.7

. 1 '

23.2'-6.4-7 .0 '

12.6'12.9'9.1

16.416.518.511.3

13.16.36.46.3

10.6

3.96.8

37.3-4 .9

9.7

27.3-4 .6-9 .7

10.010.710.1

15.322.320.914.6

11.89.38.99.7

10.8

41,2.0

16.0

28,9-4 ,9

-10.0

7.411.816.1

-3.33

7.6

- . 5- . 41.32.16.7

- . 48.5

34.5-6 .9

1.2

32.1-3.2

-14.0

5.9.2

2.9

3.41.41.8

-3.05.7

.63,3

28.5-8 .612.2

-8 .7

3.76.33.8

23.3'25.513.6'9.9

17.76.0'5.9'4,68.9

2.0'5.3'

27.8-8 .327.7

30.51.2'

•19.1

6.59.6

11.9

8.23.07.48.7

4.9n.a.n.a.

- . 822.2

16.0-1 .318.4

n.a.7.4

1. Unless otherwise noted, rates of change arc calculated from averageamounts outstanding in preceding month or quarter.

2. Figures incorporate adjustments for discontinuities associated with theimplementation of the Monetary Control Act and other regulatory changes toreserve requirements. To adjust for discontinuities due to changes in reserverequirements on rescrvabie nondeposit liabilities, the sum of such requiredreserves is subtracted from the actual series. Similarly, in adjusting for discontin-uities in the monetary base, required clearing balances and adjustments tocompensate for float also are subtracted from the actual scries.

3. The monetary base not adjusted for discontinuities consists of totalreserves plus required clearing balances and adjustments to compensate for floatat Federal Reserve Hanks plus the currency component of the money stock lessthe amount of vault cash holdings of thrift institutions that is included in thecurrency component of the money stock plus, for institutions not having requiredreserve balances, the excess of current vault cash over the amount applied tosatisfy current reserve requirements. After the introduction of contemporaneousreserve requirements (CRR), currency and vault cash figures are measured overthe weekly computation period ending Monday.

Before CRR, all components of the monetary base other than excess reservesare seasonally adjusted as a whole, rather than by component, and excessreserves are added on a not seasonally adjusted basis. After CRR, the seasonallyadjusted series consists of seasonally adjusted total reserves, which includeexcess reserves on a not seasonally adjusted basis, plus the seasonally adjustedcurrency component of the money stock plus the remaining items seasonallyadjusted as a whole.

4. Composition of the money stock measures and debt is as follows:Ml: (I) currency outside the Treasury, Federal Reserve Banks, and the vaults

of commercial banks; (2) travelers checks of nonbank issuers; (3) demand depositsat all commercial banks other than those due to domestic banks, the U.S.government, and foreign banks and official institutions less cash items in theprocess of collection and Federal Reserve float; and (4) other checkable deposits(OCD) consisting of negotiable order of withdrawal (NOW) and automatic transferservice (ATS) accounts at depository institutions, credit union share draftaccounts, and demand deposits at thrift institutions. The currency and demanddeposit components exclude the estimated amount of vault cash and demanddeposits respectively held by thrift institutions to service their OCD liabilities.

M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)issued by all commercial banks and overnight eurodollars issued to U.S. residentsby foreign branches of U.S. banks worldwide, Money Market Deposit Accounts(MMDAs), savings and small-denomination time deposits (time deposits—includ-ing retail RHs—in amounts of less than £100,000), and balances in both taxable andtax-exempt general purpose and broker/dealer money market mutual funds.Excludes individual retirement accounts (IRA) and Keogh balances at depositoryinstitutions and money market funds. Also excludes all balances held by U.S.

commercial banks, money market funds (general purpose and broker/dealer!,foreign governments and commercial banks, and the U.S. government. Alsosubtracted is a consolidation adjustment that represents the estimated amount ofdemand deposits and vault cash held by thrift institutions to service their time andsavings deposits.

M3: M2 plus large-denomination time deposits and term RP liabilities (inamounts of $100,000 or more) issued by commercial banks and thrift institutions,term Eurodollars held by U.S. residents at foreign branches of U.S. banksworldwide and at all banking offices in the United Kingdom and Canada, andbalances in both taxable and tax-exempt, institution-only money market mutualfunds. Excludes amounts held by depository institutions, the U.S. government,money market funds, and foreign banks and official institutions. Also subtracted isa consolidation adjustment that represents the estimated amount of overnight RPsand Eurodollars held by institution-only money market mutual funds.

L: M3 plus the nonbank public holdings of U.S. savings bonds, short-termTreasury securities, commercial paper and hankers acceptances, net of moneymarket mutual fund holdings of these assets.

Debt: Debt of domestic nontinanciai sectors consists of outstanding creditmarket debt of the U.S. government, state and local governments, and privatenonfinancial sectors. Private debt consists of corporate bonds, mortgages, con-sumer credit (including bank loans), other bank loans, commercial paper, bankersacceptances, and other debt instruments. The source of data on domesticnonfinancial debt is the Federal Reserve Board's flow of fund's accounts. Debtdata are based on monthly averages. Growth rates for debt reflect adjustments fordiscontinuities over time in the levels of debt presented in other tables.

5. Sum of overnight RPs and Eurodollars, money market fund balances(general purpose and broker/dealer), MMDAs, and savings and small timedeposits less the estimated amount of demand deposits and vault cash held bythrift institutions to service their time and savings deposit liabilities.

6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents,money market fund balances (institution-only), less a consolidation adjustmentthat represents the estimated amount of overnight RPs and Eurodollars held byinstitution-only money market mutual funds.

7. Excludes MMDAs.8. Small-denomination time deposits—including retail RPs—are those issued

in amounts of less than $100,000. All IRA and Keogh accounts at commercialbanks and thrifts are subtracted from small time deposits.

9. Large-denomination time deposits are those issued in amounts of $100,000or more, excluding those booked at international banking facilities.

10. Large-denomination time deposits at commercial banks less those held bymoney market mutual funds, depository institutions, and foreign banks andofficial institutions.

11. Changes calculated from figures shown in table 1.23.

A4 Domestic Financial Statistics HI August 1987

1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDITMillions of dollars

Factors

Surt'l YlNCi Rl.si.RVl. FUNDS

1 Reserve Bank credit

2 U.S. government securities'3 Bought outright4 Heki under repurchase agreements . . . .5 Federal agency obligations6 Bought outright7 Held under repurchase agreements . . . .8 Acceptances9 Loans

10 Float11 Other Federal Reserve assets12 Gold stock3

13 Special drawing rights certificate account . . . .14 Treasury currency outstanding

ABSORBING RI:SI:RVK FUNDS

15 Currency in circulation16 Treasury cash holdings2

Deposits, other than reserve balances, withFederal Reserve Banks

17 Treasury18 Foreign19 Service-related balances and

adjustments20 Other21 Other Federal Reserve liabilities and

capital22 Reserve balances with Federal

Reserve Hanks3

SuriM.YlNG RFSI.KVI. FUNDS

23 Reserve Bank credit

24 U.S government securities'25 Bought outright26 Held under repurchase agreements . . . .27 Federal agency obligations28 Bought outright29 Held (inder repurchase agreements.. . .30 Acceptances31 Loans32 Float"53 Other Federal Reserve assets

34 Gold stock2

35 Special drawing rights certificate account . . .16 Treasury currency outstanding

ABSORBING RFSF.RVK FUNDS

37 Currency in circulation38 Treasury cash holdings2

Deposits, other than reserve balances withFederal Reserve Banks

39 Treasury40 F'oreign41 Service-related balances and

adjustments42 Other43 Other Federal Reserve liabilities and

capital44 Reserve balances with Federal

Reserve Banks1

Mot tilly averages oftaily figures

1987

Mar.

221,583

195,925195,619

1067,7727,719

510

515466

16,88511 ,(18.15,018

17,711

207,265506

3,161218

2,026442

6,345

.15,412

Apr.

230,04'J

201,6.10201,662

1,9688,2207,701

5170

872604

16,72111,0795,018

17,744

209,684530

7,163279

2,211424

6,896

16,701

May

241,800

211,797206,118

7,47910,0657,6812,382

01,179

64516,11411,0735,018

17,795

212,064521

16 028314

2,095407

6,910

37,144

Fiul-of-month figures

1987

Mar.

227,578

196,409196,409

07,7197,719

00

1,5875,241

16,622

11,0815,018

17,715

207,818518

1,576268

1,817577

6,682

40,156

Apr.

249,706

218,883205,112

11,77111,0397,683.1,356

02,464

12617,914

11,0765,018

17,767

210,265511

29,688.141

1,812513

7,057

1.1.317

May

2.31,880

207,304207,304

07,6837,683

00

832922

15,139

11,0705,018

17,823

211,547514

6,183320

1,779172

6,511

36,165

Weekly averages of daily figures for week c id ing

1987

Apr. 15

227,243

201,744201,299

4457,8627,714

1480

691224

16,72011,0785,018

17,718

210,111511

1,815202

2,118.199

6,762

16,919

Apr. 22

232,065

204,193202,515

1,8588,1957,701

4940

1,2191,512

16,74611,0785,018

17,748

210,281514

4,758270

2,041451

7,018

40,556

Apr. 29

233,864

207,658205,270

2,1888,1747,683

6910

79848

17,08211,0765,018

17,758

209,620511

11,112154

1,99319(1

7,041

34,474

May 6

251,207

220.047206,068

11,97911,5167,6813,8.13

02,021

11217,31211,0765,018

17,769

210,4*8528

22,844401

2,447551

7,104

40,716

May 13

245,284

216,195206,051

10,14410,785:>,68!1,102

0768210

17,12711,0745,018

17,781

211,745528

21,006317

1,951175

6,988

36,248

Wednesday figures

May 20

239,658

212,250205 674

6,57610,0117,6812,128

0891

1,01615,49111.0725.018

17,797

212,004525

14,940286

2,041374

6,912

16,441

May 27

237,479

210,801206,414

4,1899,4467,6831,761

01,427

67415,12911.0725,018

17,811

212,890520

I2,f>84258

l,i)55162

6,848

35,86!

1987

Apr, 15

229,625

203,917202,818

1,0998,1987,714

4840

464294

16,752

11,(1785,018

17,747

210,460534

4,056285

1,806557

6,677

39,092

Apr. 22

242.619

209.978202,014

7,94410,0287,6832,345

05,627- 1 0 2

17,088

11,0775,018

17,757

210,179511

9,431225

1,810522

7,037

46,716

Apr. 29

243,550

211,824204,590

9,21410,4167,6832,75.1

01,096

69117,503

11,0765,018

17,767

209,899529

25,802504

1,811527

7,165

11,172

May 6

246,508

216,189207,218

8,97110,4717,6812,790

01,7421,006

17,098

11,0765,018

17,781

211,250529

23,041421

1,812418

6,810

16,100

May 13

245,848

215,517205,862

9,65511,6697,6833,986

0751364

17,547

11,0715,018

17,795

212,077526

19,914258

1,791194

6,676

18,097

May 20

230,812

203,105200,054

3,0519,1167,6811,433

01,5911,846

15,154

11,0715,018

17,809

212,355520

12,608297

1,791298

6,579

10,260

May 27

241,687

214,754205,851

8,9019.1097.6811.426

0797

1,55715,470

11,0705,018

17,823

211,706512

10,812355

1,778446

6,789

41,179

1. Includes securities loaned—fully guaranteed by U.S government securitiespledged with Federal Reserve Hanks—and excludes any securities sold andscheduled to be bought back under matched saJe-purchii.se transactions.

2. Revised for periods between October 1986 and April 19H7. At times duringthis interval, outstanding gold certificates were inadvertently in excess of the gold

stock. Revised data not included in this table are available from the Division ofResearch ami Statistics, Dankiny Section.

3. Hxcludes required clearing balances and adjustments to compensate forfloat.

Noi l . , l o r amounts of currency and coin held as reserves, see table 1,12.

Money Stock and Bank Credit A5

1.12 RESKRVHS AND BORROWINGS Depository Institutions

Millions of dollars

Reserve classification

1 Reserve balances with Reserve Hanks1

2 Total vault cash'3 Vault1

4 Surplus'1 . . . ,5 Total reserves"6 Required reserves7 Kxcess reserve balances al Reserve Hanks'1

8 'I'otal borrowings at Reserve Hanks9 Seasonal borrowings al Reserve B^nks

HI Hxtended credit al Reserve Hanks'

11 Reserve balances wi lh Reserve Hanks1

12 Total vault caslr13 Vault '14 Surplus-1.15 Tolal reserves'16 Required reserves17 Kxcess reserve balances at Reserve Hanks"18 Tolal borrowings at Reserve Hanks19 Seasonal borrowings at Reserve Banks20 Kxtcndcd credit at Reserve Banks

Monlhly

1984

Dec.

21.73822,31318.9583.355

40,69639.843

8513.186

1112,604

1985

Dec.

27.620••2.95120.522

2.43148,14247,085

1.0581.318

56499

19«(i

Dec.

.17..Kill24.07122.199

1.87259.56058.191

1.369827

.183(13

verages*

1986

Ocl

12.94723.75.121.6762 078

S6.62153.877

746841

99497

Nov.

14.80123.54321.595

1.947S6.19955.421

978752

70418

Dee.

37.36024.07122,199

1,87259,56058.191

1.369827

18101

Hiweekly averages of daily figures to

1987

Jan.

16.58425,049T3.084

1,96559.66858.600

1.068580

34225

I'eb.

33.62525,88921,4152.454

57.06055.849

1.^11556

71283

Mar.

is.11823,75921,743

2 01657,06156.146

916527

91264

Apr.

17,80723,35321,587

1.76759.39358,566

827993120270

weeks ending

1987

l e b . 11

32.99127.32724 6772.650

57.66756.208

1.459425

S6265

leb . 25

11.74225,23722,857

2.18056,59955.530

1,070680

81299

Mar 11

35.40023 66221.5822 080

56.98256,021

961466

83275

Mar. 25

14.80924.07722.0382.0.19

56.84755.866

981528

96261

Apr. 8

36,35821.19821.350

1.84857.70857.029

679641

98248

Apr. 22

38.74623,47921,761

1,71960,50659,701

804956110267

May 6

17.61221.28921.519

1.77059.11158.115

1,0161.410

159299

May 20

36.3272.1.55221.801

1.75158.12857.066

1.0638.10190276

June -V

36.02224.09422.151

1.94158.17357.048

1.1251.094

226297

June 17'"

37.18921.66821.976

1,69259.16558,107

85861523.1254

1. hxchldcs required ele,float

2. Dales refer to the main

)d adjuslmi

n which theto satisfy Llndc

x.mpensale lor

ish can be used

computation period by institutions having required reserve balances al FederalReserve hanks plus the amount of vault cash equal to required reserves during the

• • • • • • • bh

maintenance periods cmi M) days after the lagged computation periods in whichthe balances are held.

}. Kqual to all vault cash held during the lagged computation period byinstitutions having required reserve balances at Federal Reserve Banks plus theamount of vault cash equal to required reserves during the maintenance period alinstitutions having no required reserve balances.

4. Total vault cash at institutions having no required reserve balances less theamount o( vault cash equal to their required reserves dining the maintenanceperiod.

3. Total reserves not adjusted I'or discontinuities consist of reserve balanceswith Federal Reserve Banks, which exclude required clearing balances andadjustments to compensate for float, plus vault casli used to satisfy reserverequirements. Such vault cash consists of all vault cash held during the lagged

Intended credit cid

th Federal Reserve Banks plus vault cash used to satisfy.luired i

insists of borrowing at the discount window under the

.fepository institutions deal withnot the same need to repay sucfhort-term adjustment credit, tiniilar to tliat of nonborrowed iS. Before February 1984. da

Mished I'o ided credit program to helpsustained liquidity pressures. Because there isborrowing promptly as there is with traditionale money market impact of extended credit is.•serves.ta are prorated monthly averages of weekly

averages; beginning February 1984, data are prorated monthly averages ofbiweekly averages.

No i [.. These data also appear in the Board's \\.} (502) release. I'or address, seeinside front cover.

Aft Domestic Financial Statistics • August 1987

1.13 SKU-C.TKD HOKROWINCiS IN IMMKDIATHI .Y AVAILABLE. IUNIXS Large Member Hanks '

Averages of daily figures, in millions of dollars

Maituity ;IIK! source

Scdt'idl lands pun hti\cil. rcf>l<r< lm\c {t^rccmeni*, andnlhcr scU't ted borrow itu; in nnmcdialclv avttilahlrUnuls

From coinmciciiil hanks HI the United StatesFor one day 01 under continuing contractFor all other malurities

lYom oilier dcposiloiv insliliilions. toicign hiinks andlorciîi oflicial iilsliliilions, anil Unilcd Stalesf^n'ernmetit agencies

I\M one diiy 01 \liuler conlinuul^ cotutiicll;or all othei inalinities

Ri'pttrt lm\f u<!r{'cmcitl\ on I hiilctl Stu!c\ ôva nntcntnntl Ictlcral wirm v sci urilic\ in iniiilnliali-lytmiiltihlc Innils

lirokcrs and nonliank dealeis in seclniliesI of one day or under continuing contractI'm all other nialnrilies

All other customersI'or one day or nuclei conlinning contractl-or all other maturities

Ml.MO: Federal funds loans and resale agreenienls inimmediately available linuls in maturities of one day01 under continuing contract

To commercial banks in the United SlatesTo all other specified customers

. Banks with assets of SI billion 01 more as of Dec .11. 1'/

77.242K..US

t'U'XI6.(121

28,(4') '

Mar. 2 Mai , <)

7S.I22 i «().S(,1'l.l.ld '• H.f.77

4(1.S«:(..6.U

H.0.V110.649

27.176I0.1WK

27..HIS•J.S7S

27..17.V 27.994'

l')S7 week ending Monday

Ma i . 16

11.4H.V

W.I72

2S.616

Mar. 10

W ,6S 17,412

12.12010.S2S

25. Kl.lV.S/4

2.1,914'

A p i . 6

W.S917.')22

12.806<), 147

P.'J.1O711.12')

Apr 11

Sl.h.l'J8.974

42.5117,')74

26.04910.112

,/2S.649'11.124

80..180').877

.15.8078,287

12.49511.167

21.14')12.483

2. Hrokers and nonbank dealers in secuntieforeign banks and official inst i tut ions; and I 'n i l i

^ other•ii States

depository iigovernment

solutions;ugencies.

Policy Instruments A7

1.14 FEDERAL RESERVE BANK INTEREST RATESPercent per annum

Current and previous levels

Federal ReserveBank

BostonNew YorkPhiladelphiaClevelandRichmondAtlanta

ChicagoSt. LouisMinneapolisKansas CityDallasSan Francisco . ..

Short-ter

Kate on6/26/87

5

n adjustment credit andea.sonal credit1

Hffcctivedate

8/21/868/21/868/22/868/21/868/21/868/21/86

8/21/868/22/868/21/868/21/868/21/868/21/86

Previousra e

(

<

;irst 60 days o 'borrowing

Rate on6/26/87

5

.

Previousra e

t

f

Kxtended credit"

Next 90 days o 'borrowing

Rate on6/26/87

6

6

Previousrate

After 150 days

Rate on6'26/87

7

7

Prev

I

ionse

current rates

8/21/868/21/868/22/868/21/868/21/868/21/86

8/21/868/22/868/21/868/21/868/21/868/21/86

Range of rates in recent years'

Effective date

In effect Dec. 31, 19731974—Apr. 25

30Dec. 9

16

1975—Jan. 61(124

Feb. 57

Mar. 1014

May 1623

1976—Jan. 1921

Nov. 2226

1977—Aug. 3031

Sept. 2Oct. 26

1978—Jan. 920

May 1112

July 3July 10

Range (orlevel)—All I'.R.

Hanks

7'/27'/2-8

87!V8

7</4

71/4-7V471/4-7'/4

7'/46<'4-7'/4

6'/461/4-6-V4

61/46-61/4

6

M/i-651/2

51/4-51/?51/4

51/4-5 </451/4-51/1

5'/46

6-61/26'/>

61/2-77

7-71/471/4

I-.R.Iliink

ofN.Y.

71/2887V47V4

7'/471/471/46'/4(v'/46'/I6'/l66

5'/!5'/!51/451/4

51/451/45V46

(,'/2b'A777'/471/4

Hffective date

1978—Aug. 21Sept. 22Oct. 16

20New 1

3

1979—July 20Aug. 17

20Sept. 19

21Oct. 8

10

1980—Fell. 1519

May 2930

June 1316

July 2829

Sept. 26Nov. 17Dec. 5

8

1981—May 58

Nov. 26

Dec. 4

Range (orlevel)—All I'.R.

Hanks

7'/48

8-81/281/2

81/2-9Vt9'/2

1010-101/2

101/2l ( ) l / ! - l l

1111-12

12

12-1113

12-1312

11-1211

10-11101112

12-1313

13-1414

13-141.112

F.R.Hank

ofN.Y.

7-V-i881/281/2ijl/.91/2

1010'/?

11111212

131313121111101011121313

1414131.112

F.l'fective date

1982—July 2023

Aug. 23

162730

Oct. 1213

Nov. 2226

Dec. 141517

1984—Apr. 913

Nov. 2126

Dec. 24

1985—May 2024

1986—Mar. 710

Apr. 2123

July 11Aug. 21

22

In effect June 26, 1987

Range(orlevel)—All I'.R.

Hanks

n'A-n11-111/2

1110V2

10-11)1/210

91/2-1091/2

9-91/29

81/1-98'/2

81/1-99

81/2-98V28

7V2-871/2

7-7 >/•7

6'/2-761/!6

51/2-651/2

51/2

F.R.Hank

ofN.Y.

ll ' /2111-2111111)1/2101091/291/29998V28'/2

998'/281/28

71/271/2

776'/'61/2651/251/2

51/2

1. After May 19, 1986, the highest rate within the structure of discount ratesmay be charged on adjustment credit loans of unusual size that result from a major-operating problem at the borrower's facility.

A temporary simplified seasonal program was established on Mar. 8, 1985, andthe interest rate was a fixed rate '/; percent above the rate on adjustment credit.The program was re-established on Feb. 18, 1986 and again on Jan. 28, 1987; therate may be either the same as that for adjustment credit or a fixed rate ]A percenthigher.

2. Applicable lo advances when exceptional circumstances or practices involveonly a particular depository institution and lo advances when an institution isunder sustained liquidity pressures. As an alternative, for loans outstanding formore than 150 days, a Federal Reserve Bank may charge a flexible rate that takesinto account rates on market sources of funds, but in no case will the rate chargedbe less than the basic rate plus one percentage point. Where credit provided to aparticular depository institution is anticipated to be outstanding for an unusuallyprolonged period and in relatively large amounts, the time period in which each

rate under this structure is applied may be shortened. See section 2O1.3(b)(2) ofRegulation A.

3. Rates for short-term adjustment credit. For description and earlier data seethe following publications of the Board of Governors: Banking and MotwtarvStatistics. 1914-1941, and I94I-IV70; Annual Statislitul Pifivst, 1970-1979. 1980.198L and 1982.

In 1980 and 1981, the Federal Reserve applied a surcharge lo short-termadjustment credit borrowings by institutions with deposits of $500 million or morethat had borrowed in successive weeks or in more than 4 weeks in a calendarquarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge wasadopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, andto 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effectiveSept. 22. 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula forapplying the surcharge was changed from a calendar quarter lo a moving 13-weekperiod. The surcharge was eliminated on Nov. 17, 1981.

A8 Domestic Financial Statistics U August 1987

1.15 RKSKKVK RKQUIRKMKNTS OF DEPOSITORY INSTITUTIONS'Percent o! deposils

Type of deposit, upddeposit interval"

Net transaction accounts1iO million-Sift. 7 millionMore ihiiii 136.7 million

By original maturity1 ,css than 1 Vi years1 V?. years or mure

I'.ttrocw'ri'ncy liabilitiesAll types - -

Depository institution requirementsafter implementation of the

Monetary Control Aet

Percent ofdeposits

\

}0

1

Infective date

12/10/8612/30/86

10/6/86I0/6/K3

ll/J.VW)

1. Reserve rci|liirements iti effect on Dec. M, l'JHd. Required reserves must heheld in Die form of deposi t wilh I'eileral Reserve Hanks or smilt cash.Nonmemhers may maintain re:indirectly on a pass-through b i

dC|KI I(A( Rt S( KVI. lUil I I UN. I

ulet r y i

rve balances with a federal Reserve Hankvith certain approved institutions. I-'or previous

Jitions i)\' the Annual Report and of theulcf provisions of the Monetary Control Act,

and loan associations, credit unions, agencies and blanches of foreign banks, andKdge corporations.

2. The (iarn-St. (iermain Depository Institutions Aet of 1982 (Public I.awl/7-32O) requires that $2 million o\' reservahle liabilities (transaction accounts,nonpersona! lime deposits, and Kuroeurrency liabilities) of each depositoryinstitution he subject to a zero percent reserve requirement. The Board is to adjust

i i ib i l i t u bje ve require-ment each year for the succeeding calendar year by 80 percent of the percentageincrease in the tolal reservablc liabilities of all depository institutions, measuredon an annual basis as of June 30. No corresponding adjustment is to he made inthe event of a decrease. On Dec. .10, 19X6, the exemption was raised from $2.6million to %2.i) million. In determining the reserve requirements of depositoryinstitutions, (he exemption shall apply in the following order: (1) net NOWaccounts (NOW accounts less allowable deductions); (2) net other transactionaccounts; and (*) nonpersonal time deposits or Kurocurreney liabilities shirting

with those wilh the highest reserve ratio. Wilh respect to NOW accounts andother transaction accounts, the exemption applies only to such accounts thatwould be subject to a 3 percent reserve requirement.

3. Transaction accounts include all deposits on which the account holder ispermitted to make withdrawals by negotiable or transferable instruments, pay-ment orders of ivithtlniwal, and telephone and preautliori/ed transfers in excess oi'three per month for the purpose of making payments to third persons or others.However, MMDAs and similar accounts subject to the rules that permit no morethan six preanthori/.ed, automatic, or other transfers per month, of which no morethan three can be checks, are not transaction accounts (such accounts are savingsdeposits subject to time deposit reserve requirements).

4. The Monetary Control Act of 19K0 requires that the amount of transactionaccounts against which ilie 3 percent restive requirement applies be mollifiedannually by 80 percent of the percentage increase in transaction accounts held byall depository institutions, determined as of June M) each year. Hffeetivc Dec. 30,l()Kf), the amount was increased from $31.7 million to $36.7 million.

V In general, nonpersonal time deposits are time deposits, including savingsdeposits, that aje no) transaction accounts and in which a beneficial interest iheld by a depositor that is not a natural person. Also included are certain

fbl i d b l d i b l i i i dy

transferable h al obliga edp y p gto depository institution offices located outside the Uniled States. T'or details, seesection 204.2 of Regulation D.

Policv Instruments A9

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1

Millions of dollars

Type of transaction

U.S. TREASURY SI:CURIFIF:S

Outright transactions leiciuding matchedtransactions)

Treasury billsI Gross purchases2 Gross sales3 lixchange4 Retlemptions

Others within 1 year5 Gross purchases6 Gross sales7 Maturity shift8 Fxchangc9 Redemptions

1 to 5 years10 Gross purchases11 Gross sales12 Maturity shift13 lixchange

5 to 10 years14 Gross purchases15 Gross sales16 Maturity shift17 lixchange

Over 10 years18 Gross purchases19 Gross sales20 Maturity shift21 Kxchange

All maturities22 Gross purchases23 Gioss sales24 Redemptions

Matched transactions25 Gross sales26 Gross purchases

Repurchase agrccments-27 Gross purchases28 Gross sales

29 Net change in U.S. government securities

1'F.DF.RAF A l i r N C Y O l l l I C i A t l O N S

Outright transiu tions30 Gross purchases31 Gross sales32 Redemptions

Repurchase agreements'33 Gross purchases34 Gross sales

35 Net change in federal agency obligations

BANKI:RS AcriiT'i ANLT.S

36 Repurchase agreements, net

37 Total net change in System Open MarketAccount

1984

20,0368,557

07.700

1.1260

16,35420,840

0

1,6380

13,70916,039

536300

-2,3712,750

4410

- 2752,052

23,7768,8577,700

808,986810,432

127,933127.690

8,908

00

256

1 1,50911,328

-76

-418

8,414

1985

22,2144,118

03,500

1,3490

19,763-17,717

0

2,1850

-17,45913,853

458100

-1,8572,184

2930

-4471.679

26,4994,2183,500

866,175865,968

134,253132,351

20,477

(10

162

22 18320,877

1,144

0

21,621

1986

22,6022.502

01,000

1900

18.673-20,179

0

8930

-17,05816,984

2360

1,6202,050

15800

1,150

24,0782,5021,000

927,997927,247

170,431160,268

29,989

00

398

31,14230.522

222

0

30,211

1986

Oct.

928000

00

974-529

0

00

- 969529

00

0

0000

92800

77.26281.892

5,67011.984

-756

00

93

9522,761

-1,902

0

-2,658

Nov.

3,318000

1900

2.974•1.810

0

8930

2.4141,510

2360

-560200

1580t)

100

4,795(10

60,14660,232

16,88815,471

6,298

00

125

1 6221,274

223

0

6,522

Dec.

5,422000

00

1,280- 1,502

0

00

- 1,2801,502

0000

0000

5,42200

91,40488,730

44,30332,028

15,023

000

5,4883,522

1,965

0

16,988

1987

Jan.

997583

00

00

61100

00

-5910

00

- 200

0000

997583

0

63,86565,145

36,37346,897

8,830

00

110

4.7146,171

-1,567

0

-10,397

Feb.

19]3.581

0800

00

1.855- 4,954

0

0252

- 1,6504,354

00

204400

000

200

1913,833

800

82,08681,387

03.168

- 8,307

000

0857

-857

0

-9,165

Mar.

1,062000

00

1.762-1,799

0

00

- 1,7621,799

0000

0000

1,06200

72,30673.476

5.6575.657

2,231

000

897897

0

0

2,2.31

Apr.

4,22(653

((

1,2320

1,375- 522

0

3,642(

1,373522

914(

- 3(

669(((

10,683653

(

83,82282,494

37,65323,881

22,474

((

37

9,2655,908

3,321

(

25,794

I. Sales, redemptions, and negative figures reduce holdings of the SystemOpen Market Account; all other figures increase such holdings. Details may notadd to totals because of rounding.

2. In July 1984 the Open Market Trading Desk discontinued accepting bankersacceptances in repurchase agreements.

AH) Domestic Financial Statistics I 1 August 1987

1.1X I 'KDKKAI. Rl lSKRVK B A N K S Condit ion and t 'cdcial Reserve Note S ta tements

Millions of dollars

Assi is

1 ( io ld cc-]titiculo account2 Special ill aw illy rights certificate account.1 Com

Loans4 T o deposi loi y insti tutions5 OtlkT .'

Acceptances- Houghl outright6 Held under repurchase agreements

1'ederal agency obligations7 Hou^hl outright8 Held under repurchase agreements

[J.S. government securitiesHouglit outright

9 Hills10 Notes11 Honds12 lolal Imuiihl outright1

H Held under repurchase agiecincnts14 I Dial U.S. government securities

15 Total loans anil secarities

16 Items in process of collection17 Hank premises

Other assets18 Denominated :n foreign cmreucies' . .19 Al) o lhe i 1

20 '1'illal assets

! I Mill 11

21 federal Reserve notesDeposits

22 To depos i t o r i n s t i t u t i o n s . . . .2 ' U.S. T icasmy ( ieneia l acco24 I orci}.." Off icial accounts . . .25 Olhei

26 Total deposits

27 Deferred credit lie28 Other liabilities and acetnei! dn idends '

29 Tulal liahililk's

(' VIM i \i A( i H U M S

id Capital paid in

il .Surplus!2 Other capital accounts

.13 total liabilities ami eapital accounts

i4 Mi MO: Marketable U.S. government secuiilicscustody lor foreign and international account

35 I cdeial Reserve noics outstanding16 l.i ss: Hekl by bank(7 Icdcral Reserve notes, net

CoUunntl held <;e<mj.\7 mil,.* ncl:18 ( iok l certificate account>9 Spec ia l d i a v . i n g r ights c e r l i l i c a l e a c c o u n t . .40 Other eligible asse ts41 U S . government and agency securities. . . .

42 Total collateral

liekl

Wednesday

Apr. 29 May 6 May 1.1 May 20 May 27

laid of month

1987

Apr.

Consolidated condition statement

1 Reserve note statement

2-M1.M2446 X!7

191.187

11.0775.018

0177.092

193,187

45,810194,511

11,0765,018

0178.419

IM4.513

45,299195.126

11,(I'M5,018

0179,2.(4

l')5,326

241.1424S.564

195.578

11.0725.018

0179.488

HI5.57S

241 ,(,244.740

196.882

11.0725.018

0180,792

1%,882 101,17(1

May

11.0775.018

521

1.0960

0

7.6812,75.1

KI4,5.1(i71 OK26.676

204.5909,214

21.1.824

225,35(p

7 019675

8,642X,1X(»

266,516

191,1X7

?2,'«125,802

s(14527

5'),«l(,

6 1481.024

262,375

1,921l,87.i

14V

266.SIA

176.544

11,0765,018

515

1,7420

0

7,6812,790

107,16471.V7K26,676

T(J7,21K8,971

216,189

228,4114

7.189674

8.211».1W

26'),500

194.511

(7.9122.1.041

421418

6I.7M4

6.J8I2.482

265,172

1.9141.871

541

26'),5IK)

177.189

11.0745.018

516

7510

0

7.68.1.1.986

105,80X7U7K26.676

205,8629,655

215.517

227, M7

6 171(»7X

X "M28,l>17

268,465

195,126

.19,MX19,914

258194

60,454

6,0092,524

264,313

I.9IX1,87!

161

268,465

179,204

11,0725,018

511

1.S910

0

7,6811.411

100,0007J..W126.751

200.0541,051

203,105

213,812

8 001677

X 240l).237

253,57(1

195.57K

.12.(15.)12.60X

29729X

45,256

6.1572.186

249,377

1,9481.871

172

253,570

182.991

11 0725,018

4X4

7970

0

7,6811,426

105.7997J.3W26.7M

205,85.18,901

214,754

224,660

9,179678

8,195(I..W

266,083

I96.X82

42,95710,812

155446

54,59(1

7,8222,588

261,882

1,9 SO1,87?

17X

266,083

17'),471

11,0X15,018

569

1,5870

0

7,7190

102,81267,67125.924

196,4090

196,409

205,715

11.2X4671

9,4676.4K4

252,289

191,170

•11,971.i.5/6

26X577

46,394

X.0412.219

247,826

1,9161,874

671

252,289

175,569

11,0765,018

517

2,4640

0

7,681.1,-156

105,05873,37826,676

205,11211,771

218,883

232,386

6.203675

8,283X.2:i(»

272,394

191,547

.15,1.(929.688

343533

65,713

6.0772.696

268,(133

1,9211,873

567

272,394

174.715

11,0705.018

476

8320

0

7.68.10

107,25073,3«326,751

207,3040

207,304

215,819

6,356678

8.0156,426

253,878

196,714

3X.1446,381

320372

45,219

5,4342,300

249,667

1,9501,873

388

253,878

1X1,247

11,0705,018

0I SO,626

196,714

\ . /mftx/i 's "lcuuntics loimctl -luily jui'.mmU'eil by U . S . yiwetnnuMU s^tuiiliv.'-ihedged with Ic t lera l Reserve Hanks ami c\chuh:\ (if any) securit ies sold andcheduled to be boiifjil back under matched sale-purchase t i ansac t ions .

2. Asse ts shown in tliis line are revalued monthly al niaikct exchange rules..'. Includes special investment account ;it Chicago ol" Treasury bills maturing

vilhin (J() davs .

4. inc ludes cxelwiiyc-haiislntion nccovnu txUeelmy the monthly reviiluvition atmaiket exchange rates ot loreigi i-cxehange comnii t inei i ls .

N o i l ; Some of these data also appear in the Board ' s 11.4,1 (503) re lease . I'oraddress , sec inside front cover .

Federal Reserve Banks All

1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security HoldingsMillions of dollars

Type and maturity groupings

1 Loans—Total2 Within 15 clays3 16 days to 90 days4 91 days to 1 year

5 Acceptances—Total6 Within 15 days7 16 days to 90 clays8 91 days to 1 year

9 U.S. Treasury securities—Total10 Within 15 clays'11 16 days to 80 days12 91 days to 1 year13 Over 1 year to 5 years14 Over 5 years to 10 years15 Over 10 years

16 Federal agency obligations—Total17 Within 15 days '18 16 days to 90 clays19 91 days to 1 year20 Over 1 year to 5 years21 Over 5 years to 10 years22 Over 10 years

Wednesday

1987

Apr. 29

1,0961.082

140

000(I

213,82419,55350.05661.89041.85116,53823.936

10.4362.884

6691,5473,7501,306

280

May 6

1.7421,673

69(1

00(10

216.18922 77<49.12462,65741,15916.53823.936

1(1.4712,79(1

7941.5533.7S01.306

280

May 13

751668

83(1

0(1(1(1

215,51722.29551.16860.42141,15916,53823,936

11.6694.058

7621.5243,7391.306

28(1

May 20

1,5911,577

140

0000

203,10513,01144,38966.10441,16014,43024,011

9.1161.713

5541,5243,7391.306

280

May 27

797781

160

0000

214,75421,00247,78866.36441.16014,43024.010

9,1091,707

5321.5213.7611,306

280

F.ncl of month

1987

Mar. 31

1.S871.573

140

0000

196,4094.688

53.01161,45038.36715,62723.266

7,71929 S532

1.3523,9181.342

280

Apr. 30

2.4642.413

510

0000

218.88321,64048.78066.83041.15916,51823,936

11,0393,487

6691,5473.7501.306

280

May 29

832752

800

00(I0

207,1048,970

51.84866,88541,16014,43024,011

7.683281532

1,5211,7631.306

280

1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements .

A12 Domestic Financial Statistics I'll August 1987

1.20 ACiCiRIttJATIi RKSKRVKS Oh' DEPOSITORY INSTITUTIONS AND MONETARY BASKBillions of dol lars , ave rages of daily I n u r e s

I tem

A l ) J L ; S [ I I) I OKC H A M . i s IN R I si KVI R I <JI ' IKI

] Total r e se rves 2 , .

2 N o n b o m n v e d reserv} Nonbonowed reser\4 Required reserves . .5 Monetary base4

edit1

Total reserves*

7 N on burro wed reserves8 N on borrowed reservesy Required reserves . . . .

10 Monetary base4

N o i A m u s I i D i OKClJANfi tSJN RjSJKVJ Rl.QUlltl.Ml N IS"1

11 Total reserve

12 Nonboirowed reserves. .IS Nonborrowed reserves pi14 Required reserves15 Monctiiry l->ase;

1984Dec.

1986Dec.

Ixb. Apr,

Seasonally adjusted

35.3835.3815 59

.W.51

.16. !218.9.1.18,66

199.20

46.06 5(1.17 5.1.2.1 54.4') 56.17 56.SS 56.87 56.85 S7.HS 58..15

44.7445.2445. (X)

217.52

55.3455.6454.80

239 51

52,3852.8852.48

234.4!

53,7454.1653.51

2.16.88

55.3455.6454.80

2.19.51

56.5355,82

242.43

56,3256.6055.66

241.97

56.3356.5955.94

244.56

56.%57.2357. FV

246.59'

Not seasonally adjusted

.16.87

36.0936.10(6 <l

188.65

.18.8')

18.12.W.I 2(8.11

192.26

40.57

37.3839.9839,71

202,34

40,70

.17.5140.0939.84

204.18

47.24

45.9246.4246.18

220.82

48.14

46.8247,4147.08

223.SI

57.64

56.8157.1156.27

243.61

59.56

58.73M.0458.19

247.71

52.8.1

5I.9K52.4852.08

233.61

54.62

si.78.54.1553.88

237.26

54.59

53.8454.2653,61

237,50

56.40

55.6556.1555.42

241.27

57.64

56,8157.1156.27

243.63

59.56

58 7359.0458.1')

247.71

58.7.1

58.1558.3857.66

243.42

59.67

59 0959.3258 60

246.75

56.09

55.5355.8254.88

240.82

S7.06

56.5056.7455.85

244.22

55.5455.8155.15

57.06

56 5156.8256.15

244.98

58..17

57.3857.6557.54

246.07'

59..19

58.4058.1')58.57'

249 24'

May

57.3257 6057.28

248.37

57.30

56.2656.5556,22

246.83

58..14

57.3058 0257.26

249.93

I. Figures mcorp,implementation ol ll: Mo Act atores qu (111

.(I will!change

jrequirements on resolvable nondeposil liabilities, the sum of sueli requiredreserves is subtracted from the actual series. Similarly, in adjusting for discontin-uities in the monetary base, required clearing balances and adjuslinenls tocompensate for float also arc subtracted from the actual scries

2. Total reserves not adjusted for discontinuities consist ol reserve balanceswith Federal Rescivc Hanks, which exclude requued clearing balances andadjustments to compensate for lloat. plus vault cash used to satisfy reserverequirements. Such vault cash consists of all vault cash held during the laggedcomputation period by institutions having required reserve balances at FederalReserve Hanks plus the amount of vault cash equal to required reserves during themaintenance period at institutions having no required reserve balances.

3. Fxtended credit consists ^f borrowing at the discount window under theterms and conditions established for the extended credit program to helpdepository institutions deal with sustained liquidity pressures. Heeause there isnot the same need to repay such bot rowing promptly as there is with traditionalshort-term adjustment credit, the money market impact of extended credit issimilar to that til mmfiorroued reserves.

4. The monetai y base not adjusted for discontinuities consists of total reservesplus required clearing balances and adjustments to compensate for lloal at FederalReserve Hanks and the currency component of the money stock less the amount

nl' vault cash holdings o\' thrift institutions that is included in the currencycomponent of the money stock plus, foi institutions not having required reservebalances, the excess o\' current vault cash over the amount applied to satisfycurrent reseive requirements. After the introduction of contemporaneous reserverequirements (CRR), currency ami vault cash figures are measured over theueekly compulation period ending Monday.

Before CRR, all components of the monetary base other thanally .vhole itlu th; idy compon

-•il on a not seasonally adjusted basis. After CRR. the seasonallyadjusted series consists of seasonally adjusted total reserves, which include

adjusted as a whole.of tin

ally ailii ,-d ha: ally tedek and the remaining items seasonally

5. Rel • t i n deposit liabil-.ctual reserve requirements, i n gities, with nu adjustments to eliminate the eflccts of diswith implementation of the Monetary Control Act or other regulatory changes toreserve requirements.

Noil . Fates! monthly and biweekly figures arc available from the Hoard'sH.1(5021 statistical release. Historical data and estimates of the impact onrequired reserves ai changes in reserve requirements are available from theHanking Section. Division of Research and Statistics, Hoard of Governors o\' theFederal Reserve System, Washington, D.C. 20551,

Monetary and Credit Aggregates A13

1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURESBillions of dollars, averages of daily figures

1 Ml2 M23 M3

5 Debt

Ml components6 Currency2

7 Travelers checks'8 Demand deposits4

9 Other checkable deposits'

Nontransactions components10 In M2'\11 In M3 only7 . . .

Savings deposits*12 Commercial Banks13 Thrift institutions

Small denomination time deposits''14 Commercial Banks15 Thrift institutions

Money market mutual funds16 General purpose and broker/dealer

Large denomination time deposits10

18 Commercial Banks11

Debt components20 Federal debt21 Nonfederal debt

22 Ml23 M224 M325 126 Debt

Ml components

28 Travelers checks1

29 Demand deposits4

30 Other checkable deposits'

Nontransactions components31 M26

32 M3 only7

Money market deposit accounts33 Commercial banks34 Thrift institutions

Savings deposits*35 Commercial Banks36 Thrift institutions

Small denomination lime deposits9

38 Thrift institutions

Money market mutual funds39 General purpose and broker/dealer

Large denomination time deposits10

41 Commercial Banks11

42 Thrift institutions

Debt components43 Federal debt44 Nonfederal debt

1983Dec.

526.92,184.62,692.83,154.65.2(16.3

148.34.9

242.3131.4

1,657.7508 2

133.2173.0

350.9432.9

138.243 2

230.096 2

1,172.84,033.5

1984Dec.

2,369.12,985.43 529.05,946.0

M8.55.2

248.3145.5

1,811.5616.3

122.2166.6

386.6498.6

167.562.7

269.6147.3

1,367.64,578.4

1985Dec.

627.02,569.53,205.53,838.96,7">4.9

170.65.9

27") ">

1,942.5636.1

124.6179.0

383.9500.3

176.565.1

284.1152.1

1,587.05.187.9

1986Dec '

Seasonally

730.52,800.23,488.64,140.67.643.0

183.56.4

308.3232.3

2,069.7688.4

154.5211.8

364.7488.7

207.684.1

291.8155.3

1,806.95,836.2

Feb.'

adjusted

757.42,821.13,518.54,181.37,754.6

187.26.7

300.8242.9

2,083.7697.4

164.4222.7

362.6485.4

210.784.7

296.0152.2

1,825.95,928.7

1987

Mar.' Apr.'

739.52,824.33,523.64,170.97,791.3

187.76.8

299.3245.7

2,084.8699.3

168.3227.9

360.0485.5

21 1.684.9

299.0151.1

1,831.65,959.6

750.42,838.53,540.84,186.87,848.7

188.96.8

304.0250.8

2,088.1702.4

172.2233.7

357.5486.0

211.883.1

305.9148.7

1,841.66,007.1

May

753.22,839.93.555.4

n.a.n.a.

190.26.7

304.0252.3

2,086.7715.5

174.5237,1

357.1486.5

210.381.8

310.6149.0

n.a.n.a.

Not seasonally adjusted

538.32,191.62,702 43 163 15,200.7

150.64.6

251.0132.2

1,653.3510.8

230.4148.5

132.2172.4

351 1433.5

138.243 2

231.696.3

1,170.24,030,5

570.32 378.32,997.21,539.75,940.2

160.84.9

257.2147.4

1,808.0618.9

267.4150.0

121.4166.2

386.7499,6

167.562.7

271.2147.3

1.364.74,575.5

641.02,580.53,218.83,850.76,768.3

173.15 5

282.0180.4

1,939.5638.3

332.5180.7

123.9178.8

383.8501.5

176.565.1

285.6151.9

1,583.75,184.6

746.52,813.73,503.94,154.17,635.8

186.26.0

319.5235.(1

2,067.1690.2

379.0192.4

153.8211.8

364.4489.8

207.684.1

293.2154.9

1,805,45,830.4

723.32,809.13,508.74,173.17,738.2

184.86.2

291.9240.3

2,085.8699.6

378.5192,3

162,8221.8

362.1487.9

210.784.7

298.1153,1

1,827.95,910.4

729.02,818,03,520.74,174.17,768.1

186.06.4

291.5245.1

2,089.0702.7

378,2192.3

167.2227.8

359.6485.8

211.684.9

301.3151.2

1,839.15,928.9

757.62,847.13,548.94,194.87,821.1

188.06.4

305.8257.5

2,089.5701.8

375.4190.1

172.1233.9

355.6484.4

211.883.1

303.2148.0

1,846.75,974.4

745.02,828.93,545.6

n.a.

190.16.5

298.9249.5

2,083.8716.8

368.8188.3

174.9237.7

355.6483.2

210.381.8

309.2149.0

n.a.n.a.

t-'or notes see following page.

A14 Domestic Financial Statistics D August 1987

NO'IT.S T O T A H I . I ' ' 1.21

1. Composition ill' the money stock ntea*M 1 : ( I ) i ide Hie Tr

, and debt is as to 2, (uneney outside the U.S. Treasury, leileral Reserve Hanks, and vaults otnks. \i; ide , | ,

of commercial bank-.; (2) travelers checks iat all commercial hanks other than thn

,.i ,

nliank issuers; (1) demand depositsdue to domestic hanks, the U.S.

vice their OCD liabilities..V Outstanding amount of U.S. dollar-dei

eid thrift

Tr cheeks I Incheeks of non-

ed inprocess of collection and Federal Reserve float; and (4) other checkable deposits(OCD) consisting of negotiable ordei of withdrawal <NOW) and automatic transferservice (ATS) accounts at depository in.slit Minns, credit union share draftaccounts, and demand deposits ;it thrift institutions. The currenej, and demanddeposit components exclude the estimated amount of vault cash and demanddeposits respectively hekt hy thrift institutions to service their OC'I) liabilities.

M2; Ml plus overnight (and continuing contract) repurclia.se agreements (KIMissued by all commercial hanks and overnight Furndollars Issued to U.S. residentshy foreign branches of U.S. hanks worldwide. MMDAs, savings and small-denomiriation time deposits (tijite deposits-—including irlai) KJ'.s— in amounts ol'less than $100,000), and balances in both taxable and tax-exempt general purposeand broker-dealer money market mutual funds. Includes individual retirementaccounts (IRA) and Keogh balances at depository institutions ami money marketfunds. Also excludes all balances held by U.S. commercial banks, money marketfunds (general purpose and broker-dealer), foreign governments and commercialbanks, and the L'.S. government. Also subtracted is a consolidation adjustmentthat represents the estimated amount of demand deposits arid vault cash hcki bythrift institutions to service then lime and savings deposits.

M3: M2 plus large-denomination time deposits and term Kl1 liabilities (inamounts of $100,001) or more) issued by commeicial banks and thrift institutions,term Furodollars held hy U.S. residents at foreign blanches of U.S, banksworldwide and at all banking ollices in the United Kingdom and Canada, andbalances in both taxable and tax-exempt, inslitution-ouly money market mutualfunds. Hxcludes amounts held hy depository institutions, (he U.S. government,money market funds, and foreign banks and official institutions. Also subtracted isa consolidation adjustment that represents the estimated amount of overnight Kl'sami Kurodollars held by institution-only money market mutual funds.

I,; M3 plus the nonbank public holdings of U.S. savings bonds, short-termTreasury securities, commercial paper- and hankers acceptances, net of moneymarket mutual fund holdings of these assets.

Debt: Debt of domestic noufinancial sectors consists of outstanding creditmarket debt of the U.S. government, state and local governments, and privatenonfinancial sectors. I'rivale debt consists uf corporate bonds, mortgages, con-sumer credit (including bank loans), other bank loans, commercial paper, bankersacceptances, and other debt instruments, I lie source of data on domesticnonfinancial debt is the 1 ederal Reserve Hoard's How of funds accounts. Debtdata are based on monthly averages.

y p i t o r y institutions aredemand deposits.

4. Demand deposits at commercial banks and foreign-related institutions otherthan those clue to domestic hanks, the U.S. government and foreign banks andofficial institutions less cash items in the process of collection and FederalReserve float. Includes the estimated amount of demand deposits held atcommercial banks hy thrift institutions to service their OCD liabilities.

5. Consists of NOW and ATS balances at all depository institutions, creditunion share draft balances, and demand deposits al thrift institutions. Other'checkable deposits seasonally adjusted equals the difference between the season-ally adjusted sum of demand deposits pins OCD and seasonally adjusted demanddeposits. Included are all ceiling free "Super NOWs," authorized hy theDepository Institutions Deregulation committee to he offered beginning Jan. 5,l'JS3.

(•>. Sum of overnight Rl's and overnight Furodoliars, money market fundbalances (general purpose and broker dealer), MMDAs, and savings and smalltime deposits, less the consolidation adjustment that represents the estimatedamount of demand deposils and vauJi cash held by thrift institutions to servicetheir lime and savings deposits liabilities.

7. Sum of large time deposits, term RPs ami term Eurodollars of U.S.residents, money market fund balances (institution-only), less a consolidationadjustment that represents the estimated amount of over night RPs and Furodol-lars held hy institution-only money market funds.

K. Savings deposits exclude MMDAs.(>. Smal)-dt,-(K>iimiarioi) lime deposits—including retail Kl's are those issued

in amounts of less than MOO.OOO. All individual retirement accounts (IRA) andKeogh accounts at commercial banks and thrifts are subtracted from small timedeposits.

10. I .urge-denomination time deposits are those issued in amounts of $100,000or more, excluding those booked at international banking facilities.

11. l.arge-denomination time deposits at commercial banks less those held bymoney market mutual funds, depository mMmilion.s, mul foreign banks amiofficial institutions.

Non-: Latest monthly and weekly figures are available from the Board's 11.6(MIH) release. Historical data are available from the Hanking Section, Division ofResearch and Statistics, Board o\' Governors of the Federal Reseive System,Washington, D.C. 20551.

Monetary and Credit Aggregates A15

1.22 BANK DEBITS AND DEPOSIT TURNOVERDebits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.

12345

6789

10

111213141516

171819202122

Bank group, or type ot custocner

D h l i l l S TO

Demand deposits-All insured banksMajor New York City banksOther banks

ATS-NOW accounts'Savings deposits4

D E W S I T 1 URNOVER

Demand deposits2

All insured banksMajor New York City banksOther banks

ATS-NOW accounts'Savings deposits4

DEDITS TO

Demand deposits2


ATS-NOW accounts'MMDAS

Savings deposits4

DEPOSIT TURNOVER

Demand deposits2


ATS-NOW accounts'MMDA'Savings deposits4

19841

128,440.857,392.771,048.1

1,588.7633.1

434.41,843.0

268.615.85.0

128,059.157,282.470,776.9

1,579.5848.8632.9

433.51,838.6

267.915.73.55.0

19851

1S4.5S6.070,445.184,110.9

1,920.8539.0

496.52,168.9

301.816.74.5

154,108.470,400,983,707.8

1,903.41,179.0

538.7

497.42,191.1

301,616.63,84.5

I9861

189,534.191,212.998,321.42,351.1

410.3

S6I.82,460.6

327.416.83.1

189,443.391,294.498,149.0

2,338.41.599.3

404,3

564.02,494.3

327.916,84.53.1

1986

Nov Dec. Jan.

Seasonally adjusted

187,594.496,829.590,764.9

2,501.0424.9

538,22,513.2

292.816.12.9

Not seas

167,465.585,849.781,615.82,255.11,434.0

382.7

476.42,225.4

260.814.63.82.6

206,689.695,831.3

110,858.42,960.8

533.7

560.72,251.6

340.018.33.5

210,574.299,357.1

111,217.12,255.7

459.2

580.32,426.4

345,513.42.9

onally adjusted

226,263,1106,935.2119,327.9

2,841.52,058.2

503.6

600.3'2,483.2'

357.417.45.5'3.3

216,638.7102,274.2114,364.5

2,679.21,913.3

499.0

S7S.9'2,345.5'

346.615.75.1'3.1

1987

Feb.

211,169.498,712.3

112,457.2,306.0

477.7

594.72,461.0

357.013.52.9

191,572.989,866.7

101,706.22,173.21,600.7

4.34.6

550.02,273.2'

329.412.94.3'2.7

Mar.

217,019.7104,224.5112,795.2

2,344.6468.6

613.82,707.8

558.013.62.8

222,532.0106,161.2116,370,8

2,422.71,754.4

476.2

641.02,742.6

377.314.14.72.9

Apr.

224,603.0107,159.2117,443,7

2,384,7528.0

627.02,711,5

368.513.63.1

229,095.0108,597.8120,497,3

2,735.82,071.1

570.8

635.12,755.6

375.015.25.63.4

1. Annual averages of monthly figures.2. Represents accounts of individuals, partnerships, and corporations and of

states and political subdivisions.3. Accounts authorized for negotiable orders of withdrawal (NOW) and ac-

counts authorized for automatic transfer to demand deposits (ATS). ATS data areavailable beginning December 1978.

4. Kxcludes ATS and NOW accounis, MMDA and special club accounts, suchas Christmas and vacation clubs.

5. Money market deposit accounts.

NOTL. Historical data for demand deposits are available back to 1970 estimatedn part from the debits series for 233 SMSAs that were available through June1977. Historical data for ATS-NOW and savings deposits are available back loJuly 1977, Back data are available on request from the Hanking Section, Divisionof Research and Statistics, Board of Governors of the Federal Reserve System,Washington, D.C. 20551.

These data also appear on the Hoard's G.6 (406) release. For address, sec insideront coverfront cover.

A16 Domestic Financial Statistics • August 1987

1.23 LOANS AND SKCURITIKS All Commercial Banks'Billions of dollars; averages of Wednesday figures

( alegory

1 lota) loans and securities2

2 U.S. government securities3 Oiher securities4 Total loans and teases-5 Commercial ami industriald Hankers acceptances held-1..7 Other commercial and

industrialX U.S. addressees-*lJ Non-U.S, addressees1, . ..

10 Real estate11 Individual12 Security13 Nnnbank linancial

institutions14 Agricultural15 Stale and political

subdivisions16 foreign banks17 Foreign official institutions .. .

19 All other loans

21) Total loans and securities-

21 l/.S. government securities22 Other securities23 Total loans ami leases"24 Commercial and indus t r ia l . . . .

26 Other commercial i imlindustrial

27 U.S. addressees4

28 Non-K.S. addressees-1. . . .29 Real estate10 Individual31 Security32 Nonbank financial

institutions33 Agricultural34 State and political

subdivisions15 Foreign hanks16 Foreign otlicial institutions .. .37 Lease financing receivables. . .38 All other loans

1986

June July Aug . Sept. Oct. 5Jov. Dec. Jan. Feb.

1987

Mar. Apr. May

Seasonally adjusted

1,978.3

275.7187.0

1,515.6511.0

6.3

506.6497.3

9.44M.6.105.141,3

14.fi1.1.7

60.110.16.0

20.437.4

1,978.2

276.2185.7

1,516.1514.2

6.4507 X498.4

9,4453.3301.841.9

34.7.14.1

Ml. 110.16.0

20,537,7

1,998.2

284.7IK').7

1,523.7512.6

6.1

506. S497.7

8.9458.330ft. 343.7

34,533 2'

59.910.36.1

20.5.38.3'

1,99.3.7

285.6187.5

1.520.6512.1

6.2

506.0496.8

9 2458.4305,2

42,7

34.S34.0

« . 910.36.1

20.516.H

2,022.6

291.5196.0

1.5.1.5,1515.2

6.5

508 7499.8

8.9464.«10B.I43.1

34.533.0

60.110.16.1

20 739.d'

2,015.1

290.5196.2

1,528.4512.K

6,3

506,5497 3

9.1464.9307.940.7

34.833.9

60.19.96.1

20.636.8'

2,044.6

294.9204.2

1,545.4517,3

6.6

M0.7501,7

9.046K.9309,942 8

14.932.7

60.010,16 0

21,141.8'

2,042.-1

293.8205.0

1.543.5516.1

67

509.4500.2

9.2469.9310.841.3

35.613.7

60.010.16.0

21.019.0

2,052.4

299.6I99.K

1.553.0520.0

6.7

511.3504.6

8.8474.2311.2

39.1

15.532.4

59.110.06.0

21 841.4'

N

2,044,0

296.1200.1

1.547.8517.8

6.6

M 1 2502! 1

9.1475.1312.337, 8

35.633.1 '

59.110.06.(1

21.539.1

2,116.1.5

304.1197 9

1,561.5525.7

6.4

5192510.7

8.5479.6312.640.1

M.932.1

58.710.05,9

->•> 0

40.0'

it seasona

2,064.2

.10.3.2198.3

1,562.6525.2

6.6

518.5509.5

9.1480.7311.7

40.4

35.432.2

58.710.15.9

21.838.6

2,(189.8

.309.9196.9

1,583.0S4I.4

(>.4

S1S.0'525,7

9.4489.0314.238.6

35.231.7

57.910.45,8

16.6

ly adjuster

2,105.2

.108..1198.1

1.S987544.3

6 7

537.6S28.8

8.8489.9117.8-10.9

3d.431,4

57.'J10.95.K

n 24 U

2,118.3

316.1190.2

1,611.8554.1

6.8'

547,2'537.8

9.5499.2114.937.7

15.731.2'

57.810.65.9

22 142.6'

2,123.7

314.6193.7

1.615,4552.4

(i 7'

545.8'51T.1

8.7'499.3317.9.39.4

(5,7.10.5'

57.810.75.9

22.443.3'

2,119.7

115.2191.8

1.610.7553.8

6.8

546.9'537.9

9.1504.0315.2

38.5

14.730.7'

57.210,3(>. 1

"!"> T

W.I'

2,121.6

318.9194.1

1,608.6551.7

6.7'

•i45 0<536.3

8.7'501.1314.7

:17.5

.33.829.8'

57.210.56.1

22.441.6'

2,126.2

314 3195.5

1,616.4551.7

6.2'

S45.S516.8

8.7511.0315.7

18.3

35.010.1 '

56.99,76.7

T> •(

38.it'1

2.I27.H

317.2194.4

1,616.2554.5

6 "*

548.1S39.9

8.4509.8313.3.38.6

31.829.2'

56.99 76.7

22.541.1'

2,147.3

315,8197.2

1,634.3553.9

6.5

547 4'518.9'

8.5517,9316.6

4.3. (»

!5.429.5'

56.0'9.96.7

22 642.2 !

2,148.4

317.7195.2

1.615 4556.5

550,0'541,6

8.4516,7314.4

45.1

34.9'28.8'

56.0'9.56.7

22.744.2'

2,16(1.6

320.1197.6

1.642.9W . 8

6.8

549.0540.8

8.2526.3316.742,0

15.429.3

55.29.95.8

22.94J.6

2,157.9

319.8196.8

1 641.4557.5

6.7

542,48.4

525.4314,8

42.1

34.929.1

55,29.65,8

22.944.1

1. These data also appear in the Hoard's (i.7 (407) release.2. Includes loiins to commercial banks in the United Slates,

3. Includes nonlinaneial commercial paper held.4. United States includes the 50 states and the District of Columbia.

Commercial Banking Institutions A17

1.24 MAJOR NONDEPOS1T FUNDS OF COMMERCIAL BANKS'Monthly averages, billions of dollars

.VHIICC

Total nondeposit funds1 Seasonally adjusted-2 Nol seasonally adjusted

Federal funds. RPs, and otherborrowings from nonbanks1

3 Seasonally adjusted4 Nol seasonally adjusted5 Nel balances due to foreign-related

institutions, not seasonallyadjusted

Ml.MO6 Domestically chartered banks' net

positions with own foreignbranches, not seasonallyadjusted^

7 dross due from balances8 Gross due to balances9 Foreign-related institutions' net

positions with directly relatedinstitutions, not seasonallyadjusted5

10 (iross due from balances11 Gross due to balances

Security RP borrowings12 Seasonally adjusted" .13 Not seasonally adjusted

U.S. Treasury demand balances7

14 Seasonally adjusted15 Nol seasonally adjusted

'lime deposits, $100,000 or more"16 Seasonally adjusled17 Not seasonally adjusted

June

134.3132.0

158.0155.7

-23.7

-30.572.241.7

6.862.869.6

90.187.9

17.716.1

341.8339.2

July

136.1132.9

165.5162.4

-29,.5

- 3 3 . 873.940.1

4.364.268.6

95.292.0

15.416.8

341.1338.3

Aug.

137.9137.8

167.4167.3

29.5

31.275.244.0

1.766.?67.9

95.995.8

14.511.1

344.3344.0

1986

Sepl.

142.6141.9

166.9166.2

-24 .3

- 29 274.044.8

4.967.972.7

95.995.2

16.518.2

344.2345.5

Oct.

140.5139.5

167.8166.9

-27 .3

31.973.541.6

4.66S.372.9

97.096.1

17 115 3

342.7343 8

Nov .

144.2145.7

166.0167.5

-21 .8

28.770,842,1

6.968.775.6

96.998.5

2.3.215.3

141.3344.1

Dec.

144.9145.0

164.0164.1

19.1

30.773.442.7

11.670.882.5

97.097.1

21.219.2

345.6347.1

Jan.

153.9'153.4'

169.0'168.5'

15.1

25.770.845,2

10.674.685.1

99.2'98.7'

21.327.5

350.1351.3

Feb.'

157.1159.8

169.1171.9

12.2

24.068.644. (>

11.872.984.8

95.598.1

23.228.6

351.1353.2

1987

Mar.

161.7'164.0'

167.7'170.0'

6.0

20.865 744.8

14.8'71.185.9'

92.5'94.8'

17.717.1

354.1356.4

Apr.

1.58.0'158.1'

167.7'167.8'

9.7

22.470.047.6

12.772.685.3

95.3'95.4'

20.721.6

359.8357.1

May

165.9166.6

165.4166.2

s

15.167.952,8

15..575.490.9

95,195.9

26.130.8

366.2364.7

1. Commercial banks arc those in the M) stateswith national or state charters plus agencies and braYork investment companies majority owned by ftcorporations owned by domestically chartered and

2. Includes seasonally adjusted federal funds, RP:nonbanks and not seasonally adjusted net KurocfWednesday data for domestically chartered banksprevious month-end data for foreign-related institut

3. Other borrowings are borrowings on any inslrnote or due bill, given for the purpose of borrowir

iid (he District of Columbianehes of foreign banks. Neweign banks, and Kdye Actneign banks., and other borrowings from

Ineludeil averages i

e ragesif current and

LCIU, such as a promissoryig money for the banking

business. This includes borrowings from Federal Reserve Hanks and from foreignbanks, lenn federal funds, overdrawn due from bank balances, loan Rl's, andparticipations in pooled loans.

4. Averages of daily figures for member and nonuicmber banks.5. Averages of daily data.6. Based on daily average data reported by 122 large banks.7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at

commercial banks. Averages of daily data.H. Avevaycs of Wednesday figures.

A18 Domestic Financial .Statistics [.".] August 1987

1.25 ASSTTS AND I.IAH1I JTJKS ()]•' COMMKRt'IAI. HANKING INSTITUTIONS Lasl-Wcdncsday-of-Month Series'Billions tit' dollars

Account

Ai.l CoMMI RC'IAI. HANKINIiINSI ]"] \) I I()NS?

1 I,onus miii securities2 Investment securities1 U.S. government securities4 OtherS Trading account assets6 Total loans7 Interbank loansK Loans excluding interbank9 Commercial and industrial

10 Keal estate11 Individual2 All othei

3 Total cash assets

5 Cash in vault

17 Demand balances at U.S. depositoryinstitutions

IK Other cash assets

19 Other assets

20 Total assets/total liabilities and capital . . .

21 Deposits

21 Savings deposits24 Time deposits25 Hot rowings26 Other liabilities27 Residual (assets less liabilities)

Ml MO28 U.S. government securities (including

trading account)2'J Other securities (including trading

account)

DoMI.SI It Al 1 Y ClIAKI I.KI!)CoMMi.ut IAI HANKS1

M) Loans and securities11 Investment securities12 1- S. government securities13 Other14 Trading account assets}> loin) loansMt interbank loans

(8 Commercial and industrial39 Real eslale4(1 Individual41 All oilier

42 Total cash assets

44 Cash in vault45 Cash items in process of collection . . .46 Demand balances at U.S. depository

institutions

IS Othci assets

•I1) to ta l assets/total liahilitk-s and capital . . .

> ) DepositsSI Transaction depositsS2 Savings depositsSI Time depositsS4 Horrowingsss Other l iabil it ies

,9*6

July

2,144.5449.0269.1179.928.6

1,666.9148.7

1,518.2510.6459 8305,8242.1

209.028.621.1

34.350.7

195.1

2,548.9

1,822.4541 64'J2!.5788.1.181.7168.7176.0

288.4

189.2

2,020.14.1.1.8262.5171.128.6

1,557.7124.0

1,413.7'44s!'J453.8105.4225.6

190 1

21.171.7

32.515 4

140.4

2,350.6

1,771.6513.5490.8747,1KJ2.2103.917"* (J

A n ,

2.164 8460.0272.9187.129 3

1,675.6145.5

1,510.1511.8466.5108.8241. )

208.328,12.1.77 (.5

14.04K.7

194.8

2,567.8

1,817.6545 7499! 2792. 1379,8171.8176.7

290.6

198.7

2,014.6441.0265.0178 (I29..

1.562.1119.7

1,442.7449!-460.4(OS. 5224.4

191.2

23.773.

32,3IS S

139.

2,365.11

1,784.2517.6497.4749.1296. K1 10.5

Sept.

2,179.7469,4276.6192.827 9

1.682,4139 8

1,542.5515.94/0.5.111.2244.9

199.128.222.966 2

32.849.2

201.4

2,58(1.4

1,834,5518,9505.5790.1391.6176.3178.1

293.2

204.1

2,044.8450.5267.9182.527.9

1,566.4115.6

t/150.8448,1464,1ill). 9227.5

182 5

22.965.8

30.916.0

143.5

2,370.8

1 779.1510.6501 7745.0306.9109.6174 9

Del

2,183 2471,9282.8189.126.0

I.685J141.2

1 544 1'51?!2476.2.112.8237.8

203.511.623,566,2

11.149.0

198.6

2,585.3

1,847,1548.8516.0782.2381.3175.7179.2

299.5

I9K.4

2.052.1452.9273.6179 326.0

1,57.1.21 18.8

1,454.3449.0470,0112.5222.7

185.629 72.3.565.6

11..135.5

141.0

2,378.7

1,792.8540.9514.1717.71(11.1108.61 "'6 0

Nov.

2.227.3475,4287.1188.028.1

1,721.8154.7

1,569.1524.9481.8(14 j248.2

227.032.2

86.5

.18.347.9

202.2

2,656.5

1,900.2596.15227)781.1397.4180.0178.9

.104.8

198.8

2,094,7457,1279,0178.228,1

1.609.5133.0

1,476.4455.7475.1113 . H

231.8

210.0^9 822 28(1! 1

36.315,6

141.6

2,446.3

1,844.8588.2520.8715.8314.1111.717^ K

Dee.

2,314.1479.6292.6187.027.8

1,807.0168.9

1.638.1568.2497,5320.4252.0

27.1.741.225.7

111.3

43.352.3

224.8

2,812.8

2,018,0691 1515!(!791.9414.5199.6180.6

.108.4

198.9

2,154,4459,3281.0176.127.8

1.667.11.17.9

1,529.5488.2490.3120.12.10.9

253.519 725.7

110.9

40.816.4

165.0

2,572.8

1,957.0682.2533.0741.8.122.9115.51"' 7 5

Jan.

2,284,8482.2296.1186.126.4

1.776.1160.1

1,616.2551.1499.9117.024K.3

214,433.423.774.5

34,048.8

201,3

2,700.5

1,898.3577.8532!.l788.2432.7188.0181.5

314.5

194.1

2,136.7461.5286.8174.826.4

1,648,8134,3

1,514,5475.5493.2316.7229.2

196.611 22.1.674.0

.12.235.6

141.5

2,474.8

1 840 8569.4530.3741.1341.7114.0178 3

Feb.

2,279.4484 7298.8185.929.0

1.765.6156.7

1,608,9551,5501,5314.7239.2

206.328 421.571.4

13.050.1

201.1

2,686.8

1,895.5569 ~*535.9790.3425.6184.6181.2

320.1

193.7

2,130.346.1.1289.2174.129.0

1,638.01.10.5

1 507.5'474.1497.0314.4221.9

188,9

21.571.0

31.116.4

144.0

2,46.1.2

1,838,2561.3531.9743,0316,1110.8178 1

1987

Mar.

2,279.2486.2299.5186.725.2

1,767.8154,3

1,613,5555.3510.7313.1214.4

203.811 122.968.1

32.749.0

202.1

2,685.2

1,899.6568.8539.7791.2414.9188.7181.9

316.7

194 7

2.121.7463.6289.4174.225.2

1,632.9124.1

1,508.8474.6504.1312.7217.4

186.5"") 722.867.7

31.135.2

143.4

2,451.5

1.840,7560.5537 7742.5319.1111.0178 8

Apr.

2,306.2'492.5105.1187.5'23.3

1,790.3151.8

1,638.555.5.5519.0'.115.2248.9

209.729,824.(174.5

11.947.5

204.0'

2,719.9'

1,919.*'590.7535! 1793.6422.7'195.2'182.5'

318.9

196.9

2,146.9'470 0J

295.2174.8'23.3

1,653.6'124,2

1,529.3'471.5512.0'114.9229.0

192.5>7 )

24.074.0

31.915.4

144.4

2,48.1.8'

1,857.1582.253.1.1'741.8'328.2'

17'J 4'

May

2 318.9495.4107.0188.421.4

1,802.1160.4

1,641.7558,2527,41)4 H241.3

2.30.837.925.181.3

37.249.3

208.5

2,758.2

1,9.19.1596.95ls!680.1.6435.6200 2183.3

320.6

196.1

2,156.2471.5296.7174.821.4

1,663,1128,6

1 514 7'475.1520.3314.5224.7

211.215 925.080.9

15.116.2

143.0

2,512.4

1 876 5588.45.16.6751.5.137.11 18.7ISO ~*

1. Data have been revised because of btMiclimai king tonew seasonal factors beginning July I9K.V Hack data aHanking Section, Hoard of Governors of the Federal Keseton, D.C., 20.S.M.

Figures me partly eslimiiied. They include nU hjink-preji:

othc uhsidi;

JW Call Reports andavailable from the

e System, Washing-

for domestically chattered commercial banks are estimates for the last Wednes-day of the month based on a sample of weekly reporting banks and quarter-end

condition re pithe last Wedinrelated inslilu

2. Comcommercial TAgreement c

3. Insured diand insuied no

data. Data for othe.day of the month has'ns and quarter-end cil banking institi '

nks, branches andnations, and New Y

miestically charteredmember banks.

banking institutionsd on a weekly repo

dition reports.

tgencies of \'o•rk State foremmcrcial ha

-•igngn in\ks im

estimates made forg sample ol foreign-

itically charterednks, l',dge Act anditmeni corporations,ide all member banks

Weekly Reporting Commercial Banks A19

1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More onDecember 31, 1982, Assets and LiabilitiesMillions of dollars, Wednesday figures

Account

1 Cash and balances due from depository institutions

2 Total loans, leasts and securities, net

3 U.S. Treasury and government agency4 Trading account5 Investment account, by maturity6 One year ov less7 Over one through live years8 Over five years9 Other securities

10 Trading account11 Investment account12 States and political subdivisions, by maturity13 One year or less14 Over one year15 Other bonds, corporate stocks, and securities16 Other trading account assets

17 Federal funds sold1

18 To commercial banks19 To nonbank brokers and dealers in securities20 To others21 Other loans and leases, gross2

22 Other loans, gross2

23 Commercial and industrial-24 Bankers acceptances and commercial paper25 All other26 U.S. addressees27 Non-U.S. addressees

28 Real estate loans2

29 To individuals for personal expenditures30 To depository and financial institutions31 Commercial banks in the United States32 Hanks in foreign countries33 Nonbank depository and other financial institutions34 I-'or purchasing and carrying securities35 To finance agricultural production36 To states and political subdivisions37 To foreign governments and official institutions38 All other39 1 .ease financing receivables40 Lrss1 Unearned income41 Loan and lease reserve2

42 Other loans and leases, net2

43 All other assets

44 Total assets

45 Demand deposits46 Individuals, partnerships, and corporations47 States and political subdivisions48 U.S. government49 Depository institutions in United States50 Hanks in foreign countries5 [ Fureign governments and otlici.il institutions52 Certified and officers' checks53 Transaction balances other than demand deposits54 Nontransaclion balances55 Individuals, partnerships and corporations56 States and political subdivisions57 U.S. government58 Depository institutions in the United States59 Foreign governments, official institutions and banksSO Liabilities for borrowed money61 Borrowings from Federal Reserve Hanks'>2 Treasury tax-and-loan notesS3 AH other liabilities tor borrowed money^64 Other liabilities and subordinated note and debentures

65 Total liabilities

66 Residual (total assets minus totnl liabilities)*

M F M O67 Total loans and leases (gross) and investments adjusted''68 'Total loans and leases (gross) adjusted2'5

69 'Time deposits in amounts of $1(10,000 or more70 Loans sold outright to affiliates—total6

71 Commercial and industrial72 Other . . . . .73 Nontransaetion savings deposits (including MMDAs)

1987

Apr. 1'

114,764

1,011,944

112,71516,59696,11815,TO40,59739,52867,349

3.77363.57551.3696.528

44.84112,2074,279

<>2,95O38,44118,4026,107

786,991768,644279,251

2,369276.882273,569

3,313

219,727140,56851,98821,171

5,20025 61614,9005,322

34,0773.166

19,64518,3464,578

17,760764,652130.848

1,257,556

250,145194,452

5,7761,516

30,1136,6411,030

10,61561,602

521,088482,865

26,498745

10,029951

25| 5680

4,977246 592

84.443

1,1611,847

88,709

974,671790,329157,684

1,9401,460

480236,368

Apr . 8'

103,001

1,006,954

112.48116,36896,11316,01640,04840,04867.107

3,51163,59651,3106,575

44,7(512.2864,909

5K.33215,87015,2027,261

786,531768,146278,291

2,350275,941272,606

3,335

220,005140,39353,59222,600

5,001">5 99015,7625,325

33,7981,027

17,95418,3874,600

17,808764,124129,474

1,2.19,429

223,884174,173

4,5942,877

23,6306,640

92811,04263,235

521,011481.1X8

26,152738

9,801932

261,3871,1808,904

•>M 30381,150

1.150,668

88,761

970,891786,396158.678

1,9031,457

446235,664

Apr . 15

119,102

1,020,867'

112,292'16,57895.714'16,01740,61039.067'67,949'

4,18263,768'51.3806,544

44,83512,388'4,792'

63,85641.29816,1186,439

794,406'775,969'279,974'

2,229'277,744'274,304'

3,440

220,970'140,986'53,06021,7824,632

26 64518,4635 323

33,742'3,068

20,383'18,4374,607'

17.822771,978'128,054'

1,268,024'

262,558'195,730'

6,1 IX11,51828,2226,546

85513,54966,729

518,641481,172

26,170699

9,672928

251 681'0

7,906•>43 775'

79,924'

1,179,5.1.1'

88,491

980,214'795,181'157.278

1,8621,402

460214,545

Apr . 22

109,998

1,022,162'

110,833'14,34696 486'15,196'41,512'19,559'68,435'

4,57661 859'51,4216,580

44,84112,437'4,517'

65,98339,63618,8857,462

794,712''776,282'279,510'

2,480'277.030'273,672'

3,3.58

220,850'141,486'.52,571'22,504

4,89625 171'20,353

5,32633,679"

3,00019,508'18,4304,602'

17,716772,394'126,362'

1,258,522'

233.431179,974

5,7553,963

25,1816,421

82911.30964,623

516,313478,418

26,419833

9,705918

267,021'4,838

20,504'241 679'88,656'

1.1711.044'

88,478

982,340'798,555'158.003

1,7541.283

470231,712

Apr . 29

99.258

1,«16,')66'

110,969'11,84797,121'IS.293'42,055'39,774'69.113'

4,94664,367'51,5286,629

44,89912,840'4,535'

60,37935,83316,5398 007

793.930'775,326'277,296'

2 247'275,049'271,734'

3,315

221 381 '141,928'53,490'23 156'

4,56125 571'20,435

5,11833,533'

3,04518,897'18.6044,495'

17,667771,769'125,988'

1,242,212'

228 895176,883

5.5854,378

21,8576,1181,076

10,77760 280

516,208478,130

26,698791

9,698890

253 928'156

20.764""11 008'94,408'

1,15.1,720'

88,492

979,919'795,121'159,599'

1,6851,215

470210,211

May 6

99,081

1,(119,275

111,29713,84097,45815.26143,31418,88269,107

4,61764.49051.333

6,60444 72913,1574,438

64,03817,82018,0068,212

792,674774,084278,649

2,475276,174272,832

.1,341

221,775141,79554,59321,062

5.10926,42216,5775,367

33,2963,111

18,92018,5904,455

17.824770.395125.055

1,24.1.412

226,206174,649

5,9112,335

25,57(16.8461,1489,741

60,165517,195478,411

27,313876

9,722871

264,4021,075

20,980242 147

86,538

1,154,506

88,906

980,672795 830159,952

1 7221,252

470230,838

May 13

100,312

i,mn,5i>3

110.47712.70597,77215,06243.34839,36168,619

4,16464,45651.348

6,56644,78211.1074,819

56,27932.27316.6557.351

789 760771.165277,184

2.415274,769271,476

3,29.1

223,466141,74654,32121,202

4.55626,56415,2345,389

.13,2412,984

17,60118.5944,471)

17.891767,398123,976

1,2.11,881

218,017172,151

4,8261.254

21,1655,892

9599,586

58.996518,242479,174

27,514880

9,791883

257,9960

20,6132!7,364

89,311

1,142,582

89.299

974.478790,563160,551

1.6981,216

483210.886

May 20

94,593

1,II21,2<>2

112,13614,49697 64015,09544,82517,72068,245

1.80164,44451,1186,515

44,8211.1,1064,469

64,09015,89418,5889,607

794,833776,2.14280,527

2,514278,011274,669

1,344

225,557141,34954,12422,805

4,92026 3981.5,2995,478

33.2692,990

17,64018,5994,480

18,001772,352120,826

1,2.16,711

227,904176,985

5,2264,083

24,9886,324

9229,177

59,331520,744480,996

28,099896

9,860892

254,111844

20,865232 402

85,521

1,147,611

89,100

985.074800,223162,880

1,7031,190

511230,901

May 27

114,514

1,014,501

11 1 72213,61298,11(114,81744.76018,51168,218

3.71964,49951,394

6,50144,89111,1054,045

61,73715,88017.4948,364

792,846774,168278,868

2.214276,654273,358

3,296

225,610141,36953.68423,614

4,94925 12114.4655,475

33.2152,905

18,55518,6784,473

19,594768,779126,390

1,255,426

23 1.830179,549

5,4781,288

27.6526.7741,1289,960

59.148521,201483,352

28,107897

9.91491 1

261,2700

20,549240 721

90,945

IJ66..W4

89,012

979,075795,089164,502

1.6771,165

511211,157

1. Includes securities purchased under agreements to resell.2. Levels of major loan items were affected by the Sept. 26, 1984, transactionween Continental Illinois National Hank and the Federal Deposit Insurancerporation. For details see the H.4.2 statistical release dated Oct. 5, 1984.. Includes federal funds purchased and securities sold under agreements to•urchase; for information on these liabilities at banks with assets of $1 billion or

MI Dec. 31, 1977, see table 1.13.

4. '[his is not it mcasmc of equity capital for use in capital adequacy analysis ortor other analytic uses,

*i Hxclusive ol loans and federal funds transactions with domestic commercialbanks.

(>. 1 ,o;ms sold are ihose sold outngln to a bank's own foreign branches,nonconsolidated nonbank affiliates of the bank, the bank's holding company (ifnot a bank), and nonconsolidaled nonbank subsidiaries of the holding company.

A20 Domestic Financial Statistics LI August 19X7

1.28 l.AIUil- WKHKI.Y RWORTINCi COMMERCIAL BANKS IN NKW YORK CITY Assets and LiabilitiesMillions ol" dollars. Wednesday figures except as noted

Account

I Cash and balances due f io in dcpositoi y inst i tut ions

2 Total hmns, lenses und siTi ir i t i t 's, net1

Securities3 I'.S. IVeasuiA and ôvermnenl agency-'4 1'iadinj; account-' . .5 Investment account, by inaiuritvf> One >ear or less7 Ova one ihj'uujj) live vears8 Over live years; "lJ Other securities't) ('lading account-1

11 Investment account12 Slates and political subdivisions, bv mail ing1 ^ ()1U. y(•;;(]• or less14 Over one year> Other bonds, corporate slocks am! securities

!.<>un\ and leases17 bederal funds sold'IS To eommeicial banks]l) I'o nonbank brokers and dealers in securities20 To others21 Other loans and leases, ^ross

2.\ Commercial and industrial

25 All oilier26 i:.S. addiessees27 Non-l ' .S. addressees28 Real estate loans29 In individuals lot personal e^pcndilures30 To depository and Iinanc al inslitiilHins

12 Banks in foreign count

VI 1 or purchasing and earrving seeuiities , .tf I'o finance agricultural productionId 'I'o slates ;uid political si ' i l lusions. 7 To foreign jiovennnenls ami otlicial institutions)H All olhejW Lease Imaneuig receivables

41 Loan and lease reserve42 Other loans and leases, net<H All oilier assets1

44 Total assets

45 Demand deposits46 Individuals, partnerships, a u( corporations47 Slates and political subdivisionsJ8 I'.-S. ôvernment4l) Depository institutions in t e I, nileil Stales5 ) Banks in foreign countries^ 1 I'oreigu governments and ollieial institutions

H Transaction balances other than demand depositsAT.S, NOW, Super NOW. telephone transfers)

><i Nontcatisactiofi balances^ Individuals, partnei'ships and corporations

^1 I' ,S. (;over nnlentH Depository institutions in the L'inted Stales

*>9 r'orei^n jimernmcnls, olliciaf institutions ami banks60 Liabilities I'or borrowed mone\d Borrowings from 1 edei at Keser ve Banks62 1 reasurv lavand-loan notes61 All other liabilities foi borrowed money' .M Other- liabilities and subordinated note and debentures

V' i'Mfiriiiii'nii'(-S

(>6 Residual (tolal assets minus tolal liabiliiies)'1

Ml MOi<] Total loans and leases (uross) ; ml investments adjusted1 ' ,<>8 Tolal loans and leases (ÎOSS) adjusted '6LJ Time deposits in amounts of S|()(i,(H)(i oi more

Apr 1

14.104

22(1,495

(I0

1 1.79!1.5944,1718,025

00

16,472l.!,»>8

1,15012,5172,605

22,9.149,5729,4513,91 1

174.035169,55962.882

57862,10461.880

42!40,81]20,50821,67911.8652.7867 (P87,!90

8.217974

6,8074,4761,579

5 |60167,29565.752

.120,351

71,58950.265

709149

9.9445.409

8824 , 2 1 !

8,1 15100,18491.620

6 1 5"1

121 848

5.(276.94!

01 ,367

/5 57(,11,841

290,671

29,680

205,79917.5,51.115.881

Apr, 8

28,339

220,858

(10

14.0021,6134,2218,168

00

16,49813,869

1,38612^4832,629

21,05410.4887.4085,158

174,057169,56062,575

601

61,568406

4 0 . 8 1 !20.50022,58112,8152,642

7,8682.58

8,17281.1

5,9574,4971,588

Hi'/! 30462.611

311,SON

57,5X119,243

571504

5,4415,181

7705,670

8,45699,55391,04 1

131,820

51083.640

1,1802,111

80,14812.899

2S2.I.W

29.678

204.307171,8083(1.174

Apr. 15

12.137

223,8X0

00

13.9291.6504,4077,872

I)0

16.5551 1,91!1.168

12,5642,622

o

21,9061 1,3668.3114 728

176.262171.74862.558

562(i 1,99661,539

45740,59120,64121,44411,75!2,3197,174

2528.221

88"'7.2154,5141,589

5.181169.48962.521)

318,5.36

72,178•18,460

7572,6607,1065,129

7097,157

9,19098.99690,694

6 1 1 111

1.6475 11

76.41!0

1,9!274,48112,05!

289,1)30

29.506

2(17.534177.05015.81(1

A , , i . 22

27,154

229,297

(t0

14,0411,5164.9817.524

0(I

16,482H.91.5

1.18012,5162,567

28,5021.1,4129,7495,122

176,94!172,42262,28!

74361 54061,086

45!40,81720.78821.52112 0262!.56!6 912

1 1 !«06253

8,207845

(!,''()!4,5211.5855,086

170,27162.166

318,596

61,26142,0(17

528707

7,0475,07!

6885,2 10

8,76998,54490,205

6 10511

1.694508

7si,8791.2505.216

71,19140,697

289,151

29,446

210,511179.98815,73!

1987

Apr . 29

24,078

226,815

00

14,2181,5355,1157,547

00

16,52711,955

1,19512.5602,572

26.68111,8178,4566.188

17\959171,10261.118

59060,5276(),09(i

•11140.89520,90821,79212.311

7 117IK265

2488,088

8826,1084,6571,485

169,18962,900

313,793

59,40541,385

5567 1 !

5,7715,176

9174 886

8,13598.(19389,705

6 12111

1.752482

71.2091)

5,24467.96545,586

284,429

29,365

209,217178,49215.955

May 6

21.225

229,013

0I

14,1001.5 125.1787,191

0(I

16.4713,9201,404

12.5162.551

10,7.101! .7969.9746 960

174,314169,64361.790

67761.11!60.656

45841,20120,940T-I 2'/5I2J592,6677 1497/7O2

2528,024

9266.1114,6711,467

167,71261,003

313,242

58,37!40 151

848170

6,1.105,6741,0081 990

8.02398,56289,866

6 494

1.712465

78,771500

5.2427.1.029.19.900

283,630

29.612

209,Mil)178,9893(i.46.5

May 1!

22,904

221,084

00

14,0181,48!5.1707,185

00

16,45!13.9661.392

12.5742.487

(j

24,2268,8959.1185.992

173,017168.37.561.721

70661,01460.554

460•11 ,59920,94922,08612,2942,2557 5 167,512

2578,024

7875.4404.6621,470

166.16859,961

303,950

52,84517,095

5151 12

5.1204.763

7974 441

7,86598,34289,56!

6 55825

1,722471

73,0610

4.99568,06542.114

274,246

29,704

206,565176.07416,411

May 20

21.202

227,461

00

14,1821,7915,6876,904

I)0

16,4281.1.96!

1 18812,5752,465

28,36110,91910,5006,942

174,972170,28961,160

74462,61662,116

47942,29720,71621,43512,0282!4296 979','!825

2578,0.16

8285,5114,6X31,4795,20!

168.29059,002

.107,665

59.41741.469

682S09

6,4845,140

7984.053

7.95099,42590,150

6 8 ^812

1,72947(>

71,971410

5,21966.12239,15!

277,936

29.729

211,196180,186

17,126

May 27

28.872

223,29(1

00

14,0811,3885 6807,(113

00

16.49614,0101,186

12,62.52,486

d

26,0079,412

10.2156,340

174,979170.2.1862, VI

51861,71461,240

49442,42720,78122,22412,747

7,418271

8.075717

d 0114,7411,4826,790

166,7066.1,854

316,016

60,74142,065

61 5189

6,5505,5.58

9654 800

7.85899,94090,799

6 90828

1,714492

75,998I)

5.154''0,84441,760

286,297

29.719

209,184178.806

17,289

1. I n c l u d e s t rad ing accoun l s e c i n n i c s .2, N o l avai lable due lo c . iu l i i le i i l ia l iu .3 Inc ludes sec iu i l i es puicl i i iscd unilci a g r e e m e n t s lo lesel l .4 Inc ludes t rad ing accoun l secur i t i e s .5. Inc ludes Icdcia l l a n d s p u r c h a s e d and s e c i n n i c s sold urn

r e p u r c h a s e .

aiutlvsis6, Not a m e a s u r e o l e i i u i t y capi tal lor use in capi lal adeo the r ana ly t ic Uses.

7. k x c l u s i v c of loans and federal funds t r a n s a c t i o n s with d o m e s t i c comine i(wr i t s .

N u n . t h e s e da ta also a p p e a r in Ihe H o a r d s 11.4.2 (504) re lease , l o r a d d nsee inside front cove r .

Weekly Reporting Commercial Banks A21

1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets andLiabilitiesMillions of dollars, Wednesday figures

Account

1 Cash and due from depository institutions.2 Total loans and securities3 U.S. Treasury and govt. agency securities4 Other securities5 Federal funds sold-fi To commercial banks in the United States7 To others8 Other loans, gross9 Commercial and industrial

10 Hankers acceptances and commercialpaper

11 All other12 U.S. addressees13 Non-U.S. addressees14 To financial institutions15 Commercial banks in the United States.16 Hanks in foreign countries17 Nonbank financial institutions18 To foreign govts. and otlicial institutions..19 For purchasing and carrying securities . .20 Ail olher21 Other assets (claims on nonrclated parties). .22 Net due from related institutions23 Total assets24 Deposits or credit balances due to other

than directly related institutions.. . .25 Transaction accounts and credit balances1

26 Individuals, partnerships, andcorporations

27 Other28 Nontransaction accounts4

29 Individuals, partnerships, andcorporations

10 Other31 Borrowings from other than directly

related institutions32 Federal funds purchased''33 From commercial banks in the

United States34 From others35 Other liabilities for borrowed money. .. .36 To commercial bunks in the

United States37 Toothers38 Other liabilities to nonrelaled parties39 Net due to related institutions40 Total liabilities

M F M O41 Total loans (gross) and securities adjusted*1

42 Total loans (gross) adjusted'1

1987

Apr. 1

10,1549(1,327'

6,9667,0875,8624,5231,339

70,412'44.547'

2,66041,887'39,587'2.300'

16,43312,840

9122,6801,0282,916'5,488

22 625'I.M47

138,752

40.6783,417

1,802'1,615'

37,261

30,1167.145

58.121'27.813

16,97210,84130.307'

26,05 14,256'

24 474'15^480

138,752

72, %4 '58,911'

Apr. 8

10,09287,761V

6,7487,2254,1732,8371.336

69.614'43,382'

2,83840,544'38.228'2,316'

16,39612.750

9002.7471.1533,274'5.409

*>3 250'[5,467

136,569'

40,1602,982

1,781-1,201

37,177

30,0587,12(1

56.636'25,702

15,45510,24830.933'

26,8004,133'

25,563'14,210'

136,569'

72.173'58,200'

Apr. 15

9,72289,702'

6,5517,2645.0983,4561,643

70,788'43,871'

2,97140,900'38,612'2,289'

16.40312.4751,0852 8431,1523,940'5,422

22,821'15,984

138,230'

40,9553.232

1,906'1.326'

37.723

.30,5027,221

57,452'25,848

IM8O10,36831,604'

27,5774,027'

25,889'P 934

I3S.23O'

73.772'59,957'

Apr. 22

10,15294,674'

6.3707,2789,2127,2351.976

71,815'44,672'

.3,12641.546'39,143'2,404'

16.27812,5681,0182,693

9084.534'5,421

22,946'15,086

142.858'

41,9553,392

2,041'1,351'

38,563

31,3747,189

58,461'26,489

15,17811,31231,971'

27,7914,180'

">6 ^52'16,190

142,858'

74.872'61,224'

Apr. 29

10.282'92,318'

6,7287 4937.2235,7591,464

70,874'44.208

3.11241.09638.8352.261

15,92212,173

9532.795

8394,412'5.493

23,587'13.753

139,940'

43,5563.786

2,035'1,750

39.771

32,2997.471

54.106'2.3.451

12,77110 68030,655'

26,4394.216'

27 02415,254

139.940'

74,386'60,165'

May 6

10,65491,055

6,7167,8847,0075,9301.077

69.44843,894

3,18440,710.38.438-> ?71

15!3971 1.650

9082,839

7463,9005,511

23,84714,863

140.419

43.4913,442

2.0191,423

40,048

32,4807.569

5.3,93625,553

I5,)'M10,15928,383

24.3224,061

27 27115.721

140,419

73,47558.875

May 13

9,95190.421

6,4617,9216,5325,701

83269,50743,876

3.13940,73738,4672.270

16,45212,729

9242,799

6572,9685,554

24,44714,246

139,065

43,6X43,275

1,9931,2«2

40,409

32,8497,559

50,97621,121

10,99710,12429,855

25,6714,184

27.K2816,576

139.065

71,99157,609

May 20

9,86392,540

6,7128,0707,79.36,872

92269,96444,583

3,27041,31338.9452.368

16,53612,6661.0612.809

5722,6975,576

24,61316,921

143,937

43,3893,322

2.0661,256

40,067

32,4927,575

58,02127,050

15,12111,92930.971

26,0374,933

28,04414,483

143,937

73,00258,220

May 27

10,16894,518

7,0518,1008.3707 820

5.5070,99744.519

3.23741.28239,006

2.27516.95313,116

9502.887

5953.1055,825

24,20816,283

145,178

43,9493,781

2,0461.735

40.169

32,8877,282

55.35924.053

14,5099,544

31,305

26,6704,635

27.63018,239

145,178

73.58258,431

1. Fft'ective Jan. 1, 1986, the reporting panel includes 65 U.S. branches andagencies of foreign banks that include those branches and agencies with assets of$750 million or more on June 30, 1980. plus those branches and agencies that hadreached the $750 million asset level on Dec, 31, I9K4.

2. Includes securities purchased under agreements to resell.3. Includes credit balances, demand deposits, and other checkable deposits.

4, Includes savings deposits, money market deposit accounts, and timedeposits.

5. Includes securities sold under agreements to repurchase.(v inclusive of louns lo and federal funds sold to commercial banks in the

United Stales.

A22 Domestic Financial Statistics (I August 1987

1.31 GROSS DKMAND DKl'OSITS Individuals, Parlnerships. and Corporations'ISillions of dollars, estimated daily-average balances, not seasonally adjusted

Type of holder

1 All holders—Individuals, |iai (unships, andeor|ioi'a(iuns

2 linaiicia) business3 Nonliiiaiicial business4 Consumer5 foreign6 Oilier

7 All holders—Individuals, pai'tuvrslups, and(•(rrnornlidii.s

X f inanc ia l business9 Nonj inancia l business

10 Consumer11 l o r e i g n12 Oi l ier

( ommercial banks

19X1Dec,

288.')

28.0154.88fi.fi

2.9K>,7

19X2Dee.

2'>1.8

15,4150.585.9

.!.(!17.(1

19X3Dee.

2W.5

32.XIf i l . l7X..53.3

17. H

19X4Dee.

.102.7

31.7166.3XI.5

1 ft19.7

19X5

Dee.1 - '

.121.(1

32.3178,5X5.5

3.521.2

19X(i

Mar.

.107.4

31.XIfifi fiX4.03.4

21.6

.lime

.122.4

32.3180,(1Xf>,4

3.1)20.7

Sepl .

.1.1.1.6

35.9IK5.986.3

1,3

Dec.

.16.1. fi

41.42(12.(1

91.1I.I

25.8

19X7

Mar.

.1.16.(1

35,9IS.i. lXX. 9

2.925.2

Weekly report ing banks

19X1Dee.

137.5

21,075.210.42.XX.I)

19X2Dec,

144.2

26.774.3.11.';

2. ' ;8,4

I9K.SDec

146.2

24 i7l;.x29.7

1.19.3

19K4Dec.-

157.1

25.3X7.I.W.5

3,41(1.9

19X5

Dec.u

l6K.fi

25.994.5.H.2

3.112.0

19X6

Mar.

150.7

25.5Xfi X32.A

.3,311,5

June

I6S.5

25.793.1M.V

2.911.9

Sepl.

174.7

2X.994 X35,0

3 212.X

Dee.

195.1

32.5106.437.5

3.31.5.4

1987

Mar.

178.2

2X.794.416.X2.X

1.5.5

I. 1-iiait p i eporls

depositors in each category arc defigures may not add lo totals becai

2. lieginning in Miirch IW4, Ihcsreporting hanks, and are nol eompadollars for December I9K.i based on

by a sampleilied in the Juot" rounding,

lata rellecl a elhli- to curlier if;

new weekly

I v i t i i ales of gi.nks.TypL

e 1971 HIM I U I N , p. 4fift.

inge in (he panel of weeklyla. Intimates in billions ofpoiting panel are; financial, .10.1; foreign, .1.1; oilier.

thrift institutions. Historical data have not been revised. The estimated voluisuch deposits for December 1984 is $*».() billion at all insured commercial band $V0 billion at weekly reporting hanks.

data back to March I9H5 have been revised to account

e ofanks

4. istorieal

business, 24.4; nonfinaneial business, HO.9; consumery.5.

.V Beginning March IW>. financial business deposits and. by implication, totalgross demand deposits have been reddmed to exclude demand deposits due to

corrections of b;1

been revised, ail'March 19X5 wefinancial Inisine

fornk reporting errors. Historical data hefore March 1985 have notI ii»iy contain reporting errors. Data for all commercial banks fore revised as follows (in billions of dollars): all holders. ..V,

.K; nonfinaneial business, .4; consumer, .9; foreign, . 1 ;for weekly reporting banks fur March I'JK.S were revised as

•i of dollars): all holders, .1 ; financial business. .7; nonhnan-•; consumer. 1.1; foreign, .1 ; other, .2.

Financial Markets A23

1.32 COMMKRCIAI. I'AI'KR AND BANKKRS DOLLAR ACCKPTANCKS OUTSTANDINGMillions of dollars, end of period

Instrument

1 All issuers

Financial companies'Dealer-placed paper'

2 Total3 Hank-related (not seasonally

adjusted)Directly placed paper*

4 Total

adjusted)6 Nonfinancial companies'1

7 Total

Holder8 Accepting banks9 Own bills

10 Hills boughtFederal Reserve Hanks

11 Own account

13 Others

fla.w.v14 Imports into Uniled States15 Fxports from United States16 All olhcr

19S2Dec.

166,436

34,605

2.51ft

84,393

32.03447.437

1981Dec.

187,658

44.455

2.441

97,042

1S.S6646,161

1984Dec

C'oi

237,586

56.485

2,035

110,543

42.10570,558

I98SDec.

imercial p;

300,899

7S.443

1,602

135,504

44.77886.952

Hankers c

79,543

10,9109.4711.439

1.4X0949

66.204

17.68116,32845.511

78,309

9 , 1 "8,1251,210

418729

67,807

15,64916.88045.781

78,364

9.81 1S.62I1.191

067 1

67.881

17,84*16,30544,214

68,413

11,1979.4711.726

1)917

56.279

IS.14711,20440,062

1986Dec.

ler(seaso!

331,(116

100.207'

2.265

152.385

40.8607K.424'

I9K6

N o \ . Dec. Jan.

ally adjiisled unless noted othcru

322,435

95,17ft'

2,035'

14ft,856

39,20580,403'

331,016

100.207'

2.265

152.185

40,86078,424'

)]lar acceptances (not seasonally

64,974

13,42!11,707

1.716

01.117

5(h234

14.67012.96037,144'

64,952

12.78710.95 1

1,835

0

5 1', 113

15,35412.69936.899

64,974

13.42311.7071.716

01,117

5IK234

14,67012,96017,144

337,190

101.965'

2,284

157,252

45,08577,971'

adjusted)7

65,049

13,22410,6622.561

09H1

50,841

14,45912,78337,807

1987

Feb. Mar.

se)

.136,677

102,939'

2,174

158.954

45.72274,784'

338,797

102.889

2,116

159,333

46,63476,575

65,144

11.82810 0061,821

01 210

521)87

14.61512.876'37.654'

65,954'

12,255'10,5161,710'

01 4S1

52Z55'

14,711'11,083'38,159'

Apr.

346,769

103,957

2,107

163,421

48,60479,391

66,660

11.1189.7211,396

0i 519

54!()24

1 S,09"i13^82617,739

1. Effective Dec. 1, 19S2. there was a break in the commercial paper sikey changes in the content of the data involved addition^ to the reportthe exclusion of broker or' dealer placed borrowings under any ma

bank-related paper from dealer-place2, Correction of a previous miselas^

a break in the series beginning Oeccmr-nonlinancial and to dealer-placed linai

3 I i i d i i l

.1 tinto directly placed.

i large

ication of paper by a reporter h,i 19K3. The correction adds som'til paper,

i i i

•ics.Theig panel,ter note

4. Includes all financial company paper sold by dealers in the open market.5. As reported by financial companies that place their paper directly with

investors.

i createdpaper to

3. Institutions engaged primarilycommercial, savings, anil mortgage banking; sales, personal, andfinancing; factoring, finance leasing, and other business lending;underwrit ing; and other investment activities.

uch as, but not limited to,mortgage

f>. Include-, public utilities and ficommunications, construction, mamtransportation, and services.

7. Beginning October 1984, the niance survey were reduced from .M0more in total atof total ;

eptance

us engagedLicturmg, mi

mber o\' respio 160 instituteporting gro

rimarily in such activities asng, wholesale and retail trade,

ndents in the bankers accepl-,ons -those with %5() million orp accounts for over LJ5 percent

1.33 PRIME RATK CHARGHD BY BANKS on Short-Term Business LoansPercent per annum

Kll'ective date

1985—Jan. 15May 20June IS

19X6— Mar. 7Apr. 21

Rate

10,5010.009.50

9.008.50

Flt'cctivc Date

1986—July I IAug. 26

1987—Apr. 1Ma> 1

15

Rate

8.007.50

7.758.008.25

Month

1985—Janl e bMarAprMayJuneJulvAugSeptOetNovDec

I9S6—JanFcbMill-

Averagerate

10.6110.5010.5010.5010 119.789. so9.509.509.509.509.50

9.509.509.10

Month

1986—AprMayJuneJulyAugSeptOclNovDec

1987—JanFcbMarAprMayJune

Averagerate

8.81S.508.508.167.907.507.507.507.50

7.507.507.507.7S8.148.25

Noi l . , These data also appear in the Hoard's H.15 (>!')> release. For address,see inside front cover.

A24 Domestic Financial Statistics II August 1987

INTKRKST RATKS Money and Capital MarketsAverages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted.

Instrument

M O M Y MAKKI I KA I I s

1 Federal funds1-"1

2 Discount window borrowing1 -'-!

Commercial paper1-''\ 1-month4 1-month*» ('-month

6 1 month7 1-month8 6-monlh

Hankers acceptances*-'1

9 1-inonlli10 6 month

Certilicntcs otdeposil. secondary market7

I I 1-iiuiiith12 1 inonlll11 <>-ui<mll>14 I'modollar deposits, 3-month*

U.S. heasnry bills'SccondaiA market1

is 3-nionlli16 6 inonlll17 1 year

Auction average1"IS l-monlh19 6 inonlll20 1-year

C \i'i i Al MAUKI I RA I I S

U.S. Treasury notes and bonds"Constant matin dies1-'

2 1 1 -year^2 2-yeai21 1 yeai24 5-ycar.'S 7 year26 10-year27 20 year2N 30-year

Composite11

29 Over 10 years (lonji-termlSlate and local notes and bonds

Moody's series11

10 Aaa11 liaaI ] Komi Hiaer seiies1'

1.1 All iiulusti ies14 Aaa15 Aa16 A17 Haa18 A-ratcd, rccently-ollered utility

bonds1'

Mi MO: Dividend/price ratio1*19 I ' ldaicd slocksK) Common stocks

1984

10.22

H. HO

10.()s10.1010.16

9,979.7.19.65

10.1410.19

10 1710.3710.6810.73

9.S29.769.92

9. S 79 809.91

10.891 1 651 1 8912.2411 4012.4412.4812.39

1 1.99

9.6110.3810.10

13.4912.7113.3113.7414.19

13.81

11.594.64

I98S

8.107.69

7.947.958.01

7.917.777.75

7.927.96

7.978.OS8.25S.28

7.487 657.81

7.4V7.667.76

8.439.279.64

10.1110.5110 6210.9710.79

10.75

8.609.589.11

12.0511,3711,8212.2812.72

12.06

10,494.25

1986

6 80

6. t.t

6.626.-196.19

6 586 186 11

6 196.29

6.616.526.516.7!

S.9S6.0!6,08

5.976 026.07

6.466.877.067.117.557.687.857.80

8.14

6.957.767.32

9 719 (129.479.95

10.39

9,61

8 761.48

1 eb.

6.105.50

6.126,055.99

f),025.885.79

s 995 9!

6.106.106.106.12

5 595.59S.61

s.59S.605,74

5,966.406.566.797.(If)7.25

n.a7.54

7.69

6.056.986.61

9.(118.388.889.209,65

8.82

7.9!1.02

I9S7

Mar.

6.1 1

6 226,166,10

6.115.955,88

6.096,02

6.186.176.186.37

5.595.60S.68

5.565.S65.68

6 0 36 426 586.797 067.25

n.a.7 55

7.62

6257.256.66

8 998.368.849.1 19.61

8.84

7.522.9(1

Apr.

6.37

h,.<9f. 45n 50

6.286.226.14

6.416.44

6.426.526.656.73

5.645.906.09

5,765,9!5 92

6.507.027.127.577.8!8.02

n.a.8.25

8.11

7,2(18,297,55

9.358.8.59, IS9..16

10.04

9.S |

7.942.99

May

6 85

6.SI6.917.04

6,786.746.47

6.917,03

6.816.997 247.25

5,666,056.52

S.7S6.1 16. S6

7.0(17.768.02K.268.478.61

n a.8.78

8,79

7.618.788.00

9.829.339.599.83

10.51

10.05

8.413,02

May 1

6.5(1

6 596.746.85

6.436.426.29

6.686.77

6.596.787.036.94

5.696.056,11

5,796,14

n.a.

6.767.447.717.928.168,32

n.a.8.54

8.57

7.408,557,85

9.649.219.409.58

10.37

9.90

8,263.05

1987

May 8

7.30

6 766.816.91

6.716.676.44

6.756.85

6,696,857,077.1 1

S.6I5.916.39

5.XI6.16

n.a.

6.887 6(17,878,098 1 38.49

n.a.8.67

8.66

7.5 s8.707.86

9.689.219.429.64

10.45

9 87

8.222.94

week em

May 15

6.75

6.786.856.93

6 Ik6.746.47

6.S26.92

6.726.897.117.10

5(>95.956,54

5.475.746.56

7.017,7!8.008.248.478.61

n.a.8.77

8.76

7.508.657.82

9 759.259,529,77

10 45

10.10

8.162.96

ing

May 22

6.77

6.947.117.27

6.866.836.52

7.157,30

7.0(17.237.537.16

5.686.2 I6.71

6.036.1-1

o.a.

7.208.008.278.528.7I8.84

n.a.9,00

9.0!

7.808.958.U

9.979.499.779.99

10.62

10.27

8.521.14

May 29

6.8(

6.886.997.12

6,816,7f6,47

6 987.11

6.8(7.037 11V.lf

5.676.176,48

5.716.18

n.a.

6.9.S7.788.018.2!8.428.S5

n.a.8.71

8.73

7.6(8.818.03

9 919 4(9.739.98

10.58

10.05

8.553.03

1. Weekly anil monthly (inures arc averages of all aikiuiiu tl;iys, where I herate lor a weekend or holiday is taken to he the late prevailing on the precedingbusiness ilay. The daih rale is the average olthe rales on a given da> weighted bythe volume of trausaetions al these rates.

2. Weekly figmes are averages lor statement week end inn Wednesday.3. Rale tor the Federal Reserve Bank of New York,4. Unweighted avenge of ottering rates quoted by ill least live dealers (in the

ease of eoinmei eial papei), or linance e<nn|ianies (in the ease of fiiuuice paper),lletore November I'JV'J. maturities tor dalu shown are Ul- 59 days, <J0- 119 days,mid 121) \7<) days for eoinmercial paper; and 30 >(J days. 90-1 |y days, and IMi-171 days for linanee paper.

>. Yields are quoted on a bank-diseounl basis, rallier Ilian an investment yieldbasis (whieh vvoukl give a higliei' figure).

fi. Dealer elosing oifcred rates for lop-rated banks. Most representative rate(which may be, but need not be, the average of the rates quoted by the dealers).

1- Unweighted average o[ offered rales quoted by at least five dealers eai ly inHie day.

K. Calendar week average. For indication purposes onl>.9. Unweighted average of closing bid lates quoted by al least live dealers.

10. Rates are recorded in ttie week in which bills are issued. Beginning with theheasury bill auction held on Apr. IK, 1(>K.*, bidders weie required to stale thepeicenlage yield (on a bank discount basis) that they would accept to two decimal

l>);iees. I'hu.s, iiveiage issujng rales in bill iiuciion.s will be reported using tworather than three decimal places.

I 1. Yields are based on closing bid prices quoled by at least five dealers.12. Yields adjusted to constant mat unties by the U.S. Treasury. That is. yields

aie read from a yield curve al fixed maturities. Itased on only recently issued,actively Haded securities,

1 A i ll ll di b d i h due nornd.

y3. Averages (to maturity or call) tor all outstanding bonds neilher

callable in less than 10 years, including one very low yielding "Mower" b14, General obligations based on Thursday figures; Moody's Investors Service.1V General obligations only, with 20 years to maturity, issued by 20 stale and

local governmental units of mixed quality. Based on liguies for Thursday.16. Daily figures from Moody's Investors Service. Based on yields lo maturity

on selected lung-term bonds.17 Compilation of the Federal Reserve. This series is an estimate of the yield

on lecently-olfered, A-ialed utjlily bonds with a 30-year maturity and 5 years ofcall protection. Weekly data arc based on Friday quotations.

18 Standard and Poor's corporate series. Preferred slock ratio based on asample of ten issues; four public utilities, four industrials, one financial, and onetransportation. Common stock ratios on the 500 stocks in the price index.

N O I L . These dala also appear in t lie Board's If. IS (5 19) and (i. I 3 (4 15) releases.For address, see inside front cover.


1.36 STOCK MARKET Selected Statistics

Indicator

Common slock prices1 New York Slock Exchange

(Dec. 31, 1965 " 50)2 Industrial3 Transportation4 Utility5 Finance6 Standard & Poor's Corporation (1941-43 - 10)1 . . .7 American Stock fixchangc-

(Aug. 31, 1973 - 50)

Volume <>J [ratling (thousands of shares)8 New York Stock Exchange9 American Stock Exchange

10 Margin credit at broker-dealers-1

I'ree credit balances at brokers*11 Margin-account^12 Cash-account

13 Margin stocks14 Convertible bonds15 Short sales

1984 1985 19861986

Sept. Oct. Nov. Dec.

1987

Jan. Feb. Mar. Apr. May

Prices and trading (averages of daily ligures)

92.46108.0185.6346.4489.28

160.50

207.96

91,0846,107

108.09123.79104.1156.75

114.21186.84

229.10

109,1918,355

136.00155.85119.8571.35

147.18236.34

264.38

141,30611,846

137.06156 52114.0674.56

145.56238.27

264.30

150,83110,853

136.74156.56120.0473.38

143.89237.36

257.82

131,1558,930

140.84162.10122.2775.77

142.97245.09

265.14

154,77010,513

142.12163.85121.2676.07

144.29248.61

264.65

148,22812,272

151.17175.60126.6178.54

153.32264.51

289.02

192,41914,755

160.23189.17135.4978.19

158.41280.93

315.60

183,47814,962

166.43198.95138.5577.15

162.41292.47

332.55

180,25115,678

163.88199.03137.9172.74

150.52289.32

330.65

187,13514,420

163.00198.78141.3071.64

145.97289.12

328.77

170,89811,655

Customer linancing (end-of-period balances, in millions of dollars)

22,470

1,75510,215

28,390

2,71512,840

36,840

4,88019,000

.34,580

3,39514,060

36,310

3,80514,445

37,090

3,76515,045

36,840

4,88019,000

34,960

5,06017,395

Margin requirements (percent of market value an

Mar. II, 1968

705070

June 8, 1968

806080

May 6, 1970

655065

Dec. 6, 1971

555055

35,740

4,47017,325

38,080

4,73017,370

39,820

4,66017,285

38,890

4,35516,985

effective date)6

Nuv. 24, 1972

655065

Jan. 3, 1974

505050

1. FilTective July 1976, includes a new financial group, banks and insurancecompanies. With this change the index includes 400 industrial stocks (formerly4251, 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40financial.

2. Beginning July 5, 19X3, the American Stock lixchange rebased its indexeffectively cutting previous readings in half:

3. Beginning July 1983, under the revised Regulation T, margin credit atbroker-dealers includes credit extended against stocks, convertible bonds, stocksacquired through exercise of subscription rights, corporate bonds, and govern-ment securities. Separate reporting of data for margin stocks, convertible bonds,and subscription issues was discontinued in April 1984.

4. Free credit balances are in accounts with no unfulfilled commitments to thebrokers and are subject to withdrawal by customers on demand.

5. New series beginning June 1984.(). Regulations (i, T, and U of the Federal Reserve Board of Governors,

prescribed in accordance with the Securities Exchange Act of 1934, limit theamount of credit to purchase and carry margin stocks that may be extended onsecurities as collateral by prescribing a maximum loan value, which is a specifiedpercentage of the market value of the collateral at the time the credit is extended.Margin requirements are the difference between the market value (100 percent)and the maximum loan value. The term "margin stocks" is defined in thecorresponding regulation.

A26 Domestic Financial Statistics [J August 1987

31 SKI.KCTKD FINANCIAL INSTITUTIONS Selected Assets and LiabilitiesMillions ot dollars, end of period

Account

1 Assets

2 Mortgages1 Moilgage-backcil secutities. . . .4 Cash ami investment seciiiities' .5 Olher

6 Liabilities and net worth

/ Savings capital8 Borrowed money9 IHI .BH

10 Other11 Other

12 Nel worth-'

MlMO13 Mortgage loan commitments

outstanding*

14 Assets

15 Mortgages16 Mortgage-backed securities. . . .17 Other

18 Liabilities and net worth

19 Savings capital20 Borrowed money21 F i l l .H I !22 Other23 Other24 Net worth

M l MO25 Mortgage loan commitments

outstanding1

26 Assets

Loans27 Mortgage28 Olher

Securities29 U.S. government10 Mortgage-backed securi t ies.. .11 Stale anil local government. . .12 Corporate and olher13 Cash14 Olher assets

15 Liabil i t ies

36 Deposits17 Regular '18 Ordinary savings19 l ime40 Other11 Other l iabil it ies42 General reserve accounts

1984

903,488

555,291

124,801221,396

903,488

72.5,045P5.66664,20761,45917.944

34,833

61,305

98,559

57.4299.949

10.971

98,559

79,57212 7987.5155,2831,9034,286

3,2.14

203,898

102,89524,954

14,64319,2152,077

23,7474 954

11,413

203,898

180,616177,418

13,739104,732

1,19812,50410,510

1985

948,781

581,23597.301

126,712238,833

948,781

750 071138,79873,88864,91019,045

41,064

54,475

131,868

72,35515,67611,723

131,868

103,46219,32310,5108,8132,7326,35 1

5,355

216,776

110,44830,876

13,11119,4812,323

21,1996,225

13,113

216,776

185,972181,92133,018

IO.3.3II4,051

17,41412,82.1

May

963,274

574,992108,324134,881253,400

963,274

75 i , no145,01273.52071.51224,722

42,382

57,997

164,129

89,10819,82915.083

164,129

126.12325,68612,83012,8564,3387,982

8.762

226,495

112,41735,500

13,21022,546

2,34.320,2606,225

13,994

226.49S

190.310185.71633,577

105,1464,594

21,38414,519

June

954,226

565,037111,158130,877258.310

954,226

744,026148,0547.1.55374,50120,792

41,353

57.200

180,124

99.75821.59816.774

180,124

138,16828,50215,30111 2014,2799.175

9,410

223,367

110,95836,692

12.11522.4112,2812,0.365,301

13,244

223,367

189,109183,97034,(K)8

103,0835,139

19,22614,711

July

Sav

957,945

56.5,153II ' KM)132,787259,798

957,945

747,020146,57875,05871,52022.785

41.560

55,687

1 SI.

183,317

101,75523,24717,027

183,317

140,61028,72215,86612,8564,5649,422

10,139

224,569

111,97136,421

12,29722,954

2,30920,8624,651

13,104

224,569

188,615183,433

102.3 745,182

20,64115,084

I98(,

Aug. Sept.

ings and loan assoe

965,032

566,418113,621138,863259,726

965,032

749,020148,54175,59472,94724,706

42,764

51,180

( ' insure

186,810

103,01924,09717,056

186,810

142.85829,39016,12313,2674,9149,647

9.770

957,229

557,137117,617138,619261,415

957,229

743,518155,74880,3647\18415,461

42,501

51,16.1

1 federal s

196,225

108,62726,43118,509

196,225

149,07432,31916,8.5315,4664,666

10,165

10,221

Savings hank

227,011

113,26537,3.50

12,04321,161

2,40020,602

5.01813.172

227,011

189,937184,76434,530

102,6685,173

21,36015,427

228,854

114,18837,298

12,35723,216

2,40720,9024,811

13,675

228,854

190,210185,00235,227

102,1915 208

21,94716,319

Oct.

tions

961,894

557,303121,606138,213'250,781'

961,894

742,747152.56775.29577,27223,255

43,326

49,887

Nov.

964,096

556,780122.682141,510'250,297'

964,096

740,066156,92075,62681,29424,078

43,034

48,222

ivings banks

202,106

110,82627,51618,697

202,106

152,83433,43017,38216,0485,3.30

10,511

9,3.56

230,919

116,64836,130

12,58523,4.37

2,34721,156

5,19513,421

230,919

190,1.14185,254

16,165101,125

5,08023,31916,896

204,918

112,11728,32419,266

204,918

154,44733,9.1717,86316,0745,652

10,883

9,952

232,577

117,61236,149

13,03724,051

2,29020,749

5,05213,637

232,577

190,858185,95836,739

101,2404,900

24,25417,146

Dec.

963,316'

553,552123.257142,700'251,769'

963,316'

741,081'159,742'80,19479,548'20,071'

42,423'

41.650

210,562

113,63829,76619,0.14

210,562

157,87237,32919,89717,4324,26.3

11,098

8,686

236,866

118,32335,167

14.20925,836

2,18520,459

6,89413,793

236,866

192,194186,34537,717

100,8095,849

25,27418,105

Jan.

935,424

128,695133,237260,892

935,424

721,574152,98175,55277,42919,969

40,901

n.a.

235,351

1.16,70733,39315,948

235,351

176,72240,50220,73019,7725,121

12,811

n.a.

235,603

119,19936,122

13,33226,220

2,18019,7955,239

13,516

235,603

191,441186,38538,467

100,6045,0.56

24,71018,236

1987

Feb.

936,903

n.a.128,0971.36,226262,921

"36,903

722,082151,78675,67376,11322,015

41.019

n.a.

235,661

136,42834,45716,209

235,661

177,33539,62320,22619,3975,540

13,165

n.a.

238,074

119,73737,207

1.1,52526,893

2,16819,7705,143

13,631

238,074

192,559187,59739,170

100,9224,962

25,66.318,486

Mar.

n

n

•

a.

240,739

121,17838,012

13,63127,463

2 04119,598.5,703

1.3.713

240,739

19.1,691188,43240,558

100,8%5,261

27,00318,830

1.37—Continued


Account

43 Total assets/liabilities and capital .

44 Federal45 State

46 Loans outstanding47 Federal4K State49 Savings50 Federal51 Slate

52 Assets

Securities53 Government54 United States6

55 Slate and local56 Foreign7

57 Business58 Bonds59 Stocks60 Mortgages61 Real estate62 Policy loans63 Other assets

1984

9.1,(06

63,20529,831

62,56142,33720,22484,34857,53926,809

712,919

63.89942,204

8,71312,982

159,333295,99863,335

156,69925,76754 SOS63,776

1985

IIS,1)1(1

77,86140,149

73.51347,93325,580

10S %170,92635,037

825,901

75,23051,7009,708

13,82242.3,712346,2 Id77,496

171,79728,82254,36971,971

May

132,415

86.28946,126

76.77449,95026,824

120 33179,47940,852

863,610

79,05155,1209,930

14,(XII450,279364,12286,157

177,55430,02554,35172,352

June

1.14,703

87,57947,124

77,84750,61327,234

122 95280,97541,977

872,359

78.28454,19710.11413,973

455,119167,96687,15.3

180,04130,35057,34274,223

July

1.37,901

89,53948,362

79,64751.33128,316

125 33182,59642,735

877,919

78,722S4.32I10.35014,051

455,013369,704

85,309182,54231,15154.24976,214

1986

Aug.

C

139,23.1

90,36748,866

80,65652,00728,649

126,26883,13243.136

Lite ii

887,255

79,18854,48710,47214,229

463,135374,67088,465

183,94331,844S4.24774,898

Sept.

'redit unit

140,496

91,98148.515

81.82053,04228,778

128 12584,60743,518

Oct.

ns '

143,662

93,25750,405

83,38853,43429,954

130 48386,15844,325

surance companies

892,304

81,63656,69810,60614,332

462,540378,267

84.273185,26831.725">4,27376,862

860,682

82,04757,51110,21214,324

467,433Wl 38186,052

186,97631,91854,19977,798

Nov.

145,653

94,63851,015

84,63553,87730,758

131 77887,00944,769

910,691

84,85859,80210,71214,344

473,860386,293

87,567189,46032,18454,15276,177

Dec.

147,726

95,48352,243

86,13755,30430,833

134.32787,95446,373

920,771

85,84961,49410,26714,088

474,485386,99487,491

192,97532,07954,01681,367

1987

Jai . Feb.

n a.I

1T

n a.I

1T

9.11,962

85,00061,01410,04813,938

487,837395,99491,843

193,39532,22953,69279.809

n a.

Mir.

f

1i

1T

n t

1. Holdings of stock of the Federal Home Loan Banks are in "other assets,"2. Ancludcs net undistributed income accrued by most associations.3. As of July 1985, data include loans in process.4. Excludes checking, club, and school accounts.5. Data include all federally insured credit unions, both federal and .state

chartered, serving natural persons,6. Direct and guaranteed obligations. Excludes federal agency issues not

guaranteed, which are shown in the table under "Business" securities,7. Issues of foreign governments and their subdivisions and bonds of the

International Bank for Reconstruction and Development.NOTE. Savings and loan associations: Estimates by Ihe FHLBB for all

associations in the United States based on annual benchmarks for non-FSLIC-insured associations and the experience of FSLlC-insured associations.

t'Sl.IC-insttred federal savings banks: Estimates by the FHLBB for federalsavings banks insured by the FSLIC and based on monthly reports of federallyinsured institutions.

Savings banks: Estimates by the National Council of Savings Institutions for allsavings banks in the United States and for FDlC-insured savings banks that haveconverted to federal savings banks.

Credit unions: Estimates by the National Credit Union Administration forfederally chartered and federally insured state-chartered credit unions servingnatural persons.

Life insurance companies: Estimates of the American Council of Life Insurancefor all life insurance companies in the United States. Annual figures are annual-statement asset values, with bonds carried on an amortized basis and stocks atyear-end market value. Adjustments for interest due and accrued and fordifferences between market and book values are not made on each item separatelybut are included, in total, in "other assets."

A28 Domestic Financial Statistics [ ] August 1987

1.38 FKDFRAl. FISCAL AND FINANCING OPERATIONSMillions of dollars

Type of account or operation

l/.S. hmlKd'1 keceip ls , total2 On -budget3 OIV budget4 Out lays, total5 On budget6 Oil- budget7 .Surplus, or dcl ic i l I ), totalK On budget9 Oi l ' budget

Source oHinanc ing ttotal)10 Ho l l ow ing f rom the public1 1 Cash and monetaiy assets (decrease, or

increase ( ))-12 O l b e i 1

M l Ml)11 Treasury operating balance ( level , end oi

period)14 le i t c ra l Re-serve- HanksIS lax ami loan accounts

l i sca lvearJ984

666.4SSOD.!K166.07851.78685,96I6S.XIIXS.'2I85.5X

26

170,XI

6 637.X7

K'.M21.91 1

\ear

734.OS7

1X6,171946,116

I7f.]«(l7112,260221,621

9.163

13.367l.fiM)

17,0604,174

I2,KX6

1 iscalyear19X6

200.22X

806,3181X1 49S220,72S

" l ( v ' 7 l

2.16.2X4

14.3241.2 is

11,1X47.SI4

23,870

(alendai yeai

' ,9X6

1 )ec.

60.69417.34189.1 SX74.66914.4X911.12111.9762.XS'

22,824

14.751.1.004

10,946

19X7

Jan

81,77162.9X118,790S'.94268,176IS,7662,170

U)24

4, IS \

9,S647..IKI

41.107IS,7462S,S6I

1 eb.

I7!s44

67!13816,69028,36629,219

854

16,574

24,816',482

21.114

M a i ,

3X,46918,046S4.S2767.87216.6SS2X.OI229,403

1,191

7.884

X.969',S76^,394

Apr .

I22.X9799,08 '23.X14X4.24I)69,2 IS15.O2S

29^867

9.07S

47,189541

ss.74429.68X26.0S6

May

47,691

17,486K!.4!S66,38917.046IS.74436.1X4

440

1 l.OOS

24.2171,47N

6l'«l26.72.1

Ciuauciug Bunk ((•( 'Ht iN that use ihc I'l'H to fin;eeurity tnisl luiuls (l'i

disability insurance trust hinds)2. Includes U.S. Ir

tl Budget and luueigeac> Deficit Co' presented oil-budget. Tin

ice t lit* ir fa|

•It-budge!

the U.S. tjiiota in the IMI•. kmns to Inteniiiand monetary a.ssets.

movedml I

drawing i i^lils; dep

cuiiency valuatioii

paya ons o f specialsit Hinds; miscellaneous liability (including checks iJiit.staiid-nls; seigniorage; increment on gold; net gain/loss for U.S..IjiLstim-ut; net gain/loss fur IMF valuation adjustment; and

accounts; SDKs; reset ve position onional Monetary I'uiul; and other cash

sale of gold.

Soiuu i s. •Monthly lieasury Statement of Receipls mu\ Outlays of the U.S.( i o v e r n m e n t " and the iiiid^cl of the (AS', d'ovcnimcnl.

Federal Finance A29

139 U.S. BUDGET RHCHIPTS AND OUTLAYSMillions of dollars

Source or type

Rl < I i i ' is

1 All sources

2 Individual income taxes, net3 Withheld4 ['residential Election Campaign Fund . . .5 Nonwithliekl(S Refunds

Corporation income taxes7 Gross receiptsH RefundslJ Social insurance taxes and contr ibutions,

net10 Kmploymcnt taxes anil

contributions1

11 Sell-employment taxes andcontributions-

12 Unemployment insurance13 Other net receipts1

14 Kxeise taxes15 Customs depositsId Kstate and gift taxes17 Miscellaneous receipts4

Oil MAYS

18 Alt types

]9 National defense20 International a Hairs

22 Energy23 Natural resources and environment24 Agriculture

25 Commerce and housing credil26 Transportation27 Community and regional development . . . .28 Kducation. training, employment, social

serviees

29 Health30 Social security and medicare31 Income security

32 Veterans benefits and services33 Administrat ion of justice34 General government35 General-purpose fiscal assistance36 Net interest'37 Undistributed offsetting receipts''

Fiscalyear1985

7.34,(157

334,S3I298,941

35101.32865.743

77.41316,(182

265,163

234,646

10.46825.758

4.759

35,99212,07')(.,422

18.539

946,22.3

252748I6,17(.8 6^7Vi85

13,35725,565

4.22925,8387,680

29,342

33,542254,446128,2(K)

26,3526,2775,2286,353

129,43632,759

Fiscalyear1986

769,091

348,959314,838

36105,99471,873

80.44217.298

283.901

255.062

11.84024,098

4,742

32,91913.32.36,958

19,887

989,789

273,36914,471y 0174J92

13,50831,169

4,25(S28,058

7,510

29.662

35,936190,850120,686

26,6146,5556,7966,430

135,284-33,244

Calendar year

1985

I I I

380,618

166,783149,288

2976,15558,684

42.1938,370

144.598

126.038

9.48216.21.32,350

17,2595,8073,2049.144

463.S42

124,1866,6754 "'30

6805,892

11,705

-It*)11.4403.408

14,149

16.945128,35165,246

11,9563,0162,8572.659

65,14314,436

H2

364,790

169,987155,725

622,2958,038

36,5287,751

128,017

116,276

9859,2812,458

18.4706.3543,3239,861

487,188

134.6758.3674 7^73JO57,553

15,412

64415,3603,901

14,481

17,237129,03759,457

14,5273,2123,6343.391

67,44817,953

1986

H I

394,345

169,444153.919

3178,98163,488

41.9469.557

156.714

139,706

10,58114,6742,333

15,9446,3693.487

10,002

486,037

135,.3675,384

I'' 5 192^4846,245

14,482

12.6583.169

14,712

17,872135,21460,786

12,1933,3523,5662,179

68,054-17,193

112

.187,524

183,156164,071

427,7338,652

42,1088,230

134.006

122,246

1,3389,3282,429

15,9477,2823,6499,605

504,785

138,5448,8764 5942J357,141

16,160

3 ,(>4714,7453,494

15.268

19,814138,29659,628

14,4973,3602,7862,767

65,816- 17,426

Mar.

56,515

14,24027,608

104,106

17.482

15,9482,834

2.3,689

23,128

669186375

2,5111,220

5701,171

1)4,527

24,742681703441

1,0922,453

1,6771,982

490

2,440

3.26323,40710,910

1,13757043961

10,971•2,932

1987

Apr.

122,897

71,85(126.943

762,93918,039

13.2902,101

33,646

30,457

7,40.32,827

361

2,4711,165

8101.767

84,240

24,407163653361

1.0522.641

1.1291,936

592

2,317

3,67223,61511.282

2,360619196179

11,2954,230

May

47,691

9,27524,823

77,228

22,782

2,8851,042

30,218

22,270

7327.529

419

2,6331,142

7261,853

83,435

23,47183177y356985716

9972 089

585

2,255

3,54423,78210,273

2,04764635862

12,284-2.626

1. Old-age, disability, and hospital insurance, and railroad retirement accounts.2. Old-age, disability, and hospital insurance.3. ledcral employee retirement contributions and civil service retirement and

disability fund.4. Deposits of earnings by Federal Reserve Hanks and other miscellaneous

receipts.

5, Net interest function includes interest received by trust funds.(•>. Consists of rents and royalties on the outer continental shelf and U.S.

government contributions for employee retirement.

SOUIUT., "Monthly Treasury Statement of Receipts and Outlays of the U.S.Government,'1 and the Undue! of the U.S. liovvrnnwnt. Fiscal Year 1988.


i.4o 11: i > i •: R A i. ni'MT SUISJLCT TO STATUTORY LIMITATIONBillions of dollars

1

14

(,

8

9III

KMIITIII d>

I'uhlii- delHeld InIk-kl In

Agency scHold InHold In

Dehl stiliji

Public dolOtliel dob

Ml \i( i: SI

lit (nils

1 SOCU

publicagCIIC

CUl i l i c

publicagenc

O( III Si

1 SOOII

union

lnliiliiiK

i l lOS

iluton limil

ilios

ilobl limil

M

,

11

1

1

ii. 11

,715.1

.710.7

.4 IV229s.s

4 41, (

1

,711.4

.710.1I.I

,821.8

Juno .ill

1,779.0

1.774.fI/I60.S

H4.2

4.4(.11.1

1,775.3

1.774.1It

1.821.8

985

Sopl. 10

1.827.5

I.S21.I1.5Ufi.f>

.116.5

4 41.111

1,823.8

1.822.51.1

1,821 8

1

11

1

1

2

o. .11

'150.3

945.9S97.I148.9

4.41.1I.I

9.12.4

i»l.lI.I

078.7

Mar. 11

1,991.1

1,98(|.K1,614.1

4,1.1,21,1

1,97.1.3

1.972.0l..i

2,078.7

Juno 10

2,063.f

2.059.11.684.9

174.4

4. 1

I.I

2,060.11

2.OSh.71.1

2,078.7

1986

Sopl Ml

2,129.5

2.I2S.11.742.4

1X2.9

4,212I.I

2,111.11

2.1(19.7I.I

2.1 1 I I I

Dei-. 11

2,218.9

2,214.81,81 1.7

4(11.1

4 (1.1.0] 1

2,200.5

2,199 11 1

2,10(1,(1

1987

Mar. .11

2,250.7

2.246.71,8.19.1

407.5

4.02 9I.I

2,232.4

2,211.1It

2,100.0

1. Inc ludes p i a r a n t e e d tk-ht ot ' ^ o v e i t iment a^cer t i f ica tes , no tes to inlei tialiorud lending oij;ani/ .a^t;i<.liLn11 b o n d s .

peeifieil pailicipationI Distiict otColiimbia

SouiU i s. hia\urv liuilclin and Momhiv Sfutcmcn! of the 1'nhlir Pchi oj tinI'tiitai State*.

1.41 ( i R O S S I ' U U U C D1UV1' ()1- U . S . I K I ' A S U R Y Types aiut Ownersh ip

Hillit)iis of dollars, etui ot' period

4- i

f)

l)10I II.1

'-'

hi

IsIf)

ISl(l>0

"»"»

' \

M

/A' /v/jcInleresl-beaiiiif;Maikelable . . .

HilKNotesBonus

State and loeForeign issue

(iovei nineiPublic

Savings bund(ro\ ernmeiH

Non-inleresl-lx-

li\ holder1

I) s. ôvei nineFederal Keseiv

Commercial 1Mone> inaikiInsurance coiOther conipaSlate and loc

IndividualsSavings ImndOther securit!orei^n and i

debt . .

il'govei

s and nLcconnl

irinmlL

i l a-êiRHanks

auks. ,1 fundsipanieslies . . .il uovei

ilernali

1 ype and holder

iinenl scries

>tt>»,

^ • ' l ^ '

bt

ies ami Irusl funds

Ill If lit s

maP

198 1

1.400.91.050.9

141,8571,41M.7150.(1.16.710.410.4

.070.7

211.9

9.8

216.1151.9

188.822 856.719.7

155.1

71.561.9

166.1

1984

1,660.61,247.4

174.47(15.1167.9

44.49.19.1

.07.1.1

286.2

2.1

289.f,160.9

1X.S.425 976,450,1

179.4

74.569. 1

192.9

1985

1.941.41.4.17.7

199.98 2.5211.1

87.57,S7,5

.078,1

1(2.2

2 s

14K.9181..1

1,417.•>192.2

'5.195.8'59,(1

215.8

79.875.0

2 4 64(9.9

1986

2,212,(11,619 (1

426,7927.5249.8

110.54.74.7

.090.6

186.9

2.8

401.1211.1

1,602.022.5.(1

28 61116.9dX.X

27( . l

92.170.4'

257.0

(.12

2,059.3

2.OS6 71,498.2

196.9869. <212.1

98.25 15.1

082.1

172.1

2.6

.174,4181,8

1.502,7197,222,897,761.2'

219.K

81 875.7'

2.19.8

1986

0 1

2.122.71.564.1

410 7896 9241.7

102.44.14 1

085.6

165.9

2.6

182.91911.8

212.524.9

100.965.7'

256.4

87.170.9'

2S6.4474.7

Q'l

2.212 0i .diy.o

426 7927 5249 8

11054.74,7

090,fi

(86,9

2 8

401 1211,1

1.602 0225.0

28 6106.968.8

271.1

92. (70.4'

255.6

1987

<;i

2,246.7

2.244.(11.615.7

406.295 5 1259.1

1 18.54.94.9

091.0

191.4

2.7

407. s196.4

1,641.42.(2.0

18.8n.ii72.1

n.a.

94 768.4

272.1

I. hwliidosmi Adminis

Idsdop,

separate ly) : S c a i m i e s issis i u i n IHIIHIS, loli ioinonl

IlK1 Kmal i : looni l i ta-nilids, and individual

2, Noiimalkolable dollai -denoiuinaletl ami foreign euneney denominated solies hold by foreigners.

1 Hold almost enlirely by U.S. government agencies jnd Must lands.4. Data tin Federal Resolve Hanks and U.S govoi iiinenl agencies and Must

funds aio actual holdings: dala for othei groups are Treasury eslimalcs.

s. Cdnsisls iifinveslinleiest-boal in^ miles i

6. Includes savings iniuhlal sa\iuL;s banks, e

dU.S. coSo

III,11,1m.

nl depiI s, Dala by

m-iil of ihr I'lilih

cms of foreign and inlenialmnal aeeounls. I'.xeludes non-ued hi Ilie Inlei national Mouelaiy luiul.cl loan assoeialious, minproiil inslilulions. eiodil unions,ipoialo pension liust funds, dealers and brokers, cerlain

s. and U.S. govope of security, U.S. Tie;Drill of Ihr llnilnl Sl.ilr

niont sponsored agonciosiny Dopailmonl. Miinlhh; data by holder. Irrasiiry

Federal Finance A31

1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions'Par value; averages of daily figures, in millions of dollars

Hem

Immediate delivery-1 U.S. government securities

/*v maturitx2 Hills '3 Other within 1 year4 1-5 years5 5-10 years6 Over 10 years

tty type of ittstonwr7 U.S. government secnril ies

dealers8 U.S. government securities

brokers9 A l l o thers '

10 Federal agency securities11 Certif icates o f deposit12 Bankers acceptances13 Commercia l paper

Futures transactions-1

14 Treasury bil ls15 Treasury coupons16 Federal agency securities

Forward transactions^17 U.S. government securit iesIK Federal agency securities

1984

52.778

2(1,01?1.305

11,7337,606A.OW

2,919

•>s wo24.278

7,8464.9473,243

10.01K

6,9471,533

264

1.3642,843

1985

75,331

12,9001.811

18 36112,7039,5.56

3.336

16 22215,77111,6404,0161,242

12,717

5,5616,085

252

1,2833,857

1986

95,447

34,2492.115

24 66720,45513,961

3,646

49.36842,21816,7464,1551,272

16,660

3,3117,175

16

1.8767,810

Mar.

102,209

37.0272,647

24 V 222 44415.769

3.506

52,67145,44620,984

3.5702.917

15.489

3.5776.891

9

1.95210,656

1987

Apr.

138,007

50,5283,190

29,09431,47621,718

3,113

78,51155.64822,1844.964.1,453

17,914

3,57512,018

1

2 76015.961

May

116,376

36,9133,084

10,97922,71622,684

2,801

61,08949,80819,6943,8802,762

18,375

4,12810.374

6

2,84011,951

Apr . 22

142,263

52.9153,262

10.S5030,88324,652

2,678

80,97158,61128,811

5.1443,605

21,206

4,24011,497

0

4,59120,145

Apr . 29

135,360

45,9513,485

29,46032,29724.167

3.134

79,22253,00417,5164 5513,166

18,625

1,09213,109

0

2,47611,921

1987

May 6

111,829

38,2682,720

28,19022,56119,888

3,018

63,27945,53217,7481,6082.478

19,487

4,13711,404

0

4,2679,364

May 1.3

117.762

34,0773,628

27 57222,77629,709

.1,128

66,29448,14015,6303,3202,534

15,436

4,0009.696

0

2,67210,960

May 20

121,141

39,3263,081

15 87620,78822,071

2,939

65,53252.66822.630

1.8122,999

19,638

3,89111,733

0

2.27216,074

May 27

117,483

37,347.1,055

11.06521.52220,495

2,007

61,45754,01824,7294,7333,040

18,606

5 4069,579

11

2,53414,021

1. Transactions arc market purchases aiui sales of securities as reported to theFederal Reserve Hank of New York by the U.S. government securities dealers onits published list of primary dealers.

Averages for transactions are based on Ihe number of trading days in I he period.The figures exclude allotments of, and exchanges for, new U.S. governmentsecurities, redemptions of called or matured securities, purchases or sales ofsecurities under repurchase agreement, reverse repurchase (resale), or similarcontracts.

2. Data for immediate transactions do not include forward transactions.3. Includes, among others, all other dealers and brokers in commodities and

securities, nondealer departments of commercial banks, foreign banking agencies,and the Federal Reserve System.

are standardized agreements arranged on an organizedgies commit to purchase ell > •; Ibrdcliv ry at a

4, Futures contractexchange in which parfuture date.

5. Forward transacmarket in which securfrom the date of the trand bonds) or after 30 days for mortgage-backed agency is:

N O I L . Data for the period May I to Sept. M), 1986, are partially estimated.

ions are agreements arranged in the over-the-counteries are purchased (sold) for delivery after 5 business daysinsaction for government securities (Treasury bills, notes.

A32 Domestic Financial Statistics I 1 August 1987

1.43 U . S . C1OVI1RNMKNT SI -CURITIKS 1M1A1.I.RS posit ions and l i nanc ing '

Averages of daily figures, in millions ot dollars

t4s

f l

S

101

1 11211

! •

14IS

(M

mi

h1.

t

MillsOilier ttilhin 1 U'a1 s U 'arss It) \eaisD m 10 years. . .

.iminercial papei . .ires positionseasun hillseasuiA coupons .

.\ard positionsN. govcl iiiiieiil sec

.'dcral ai!cnc\ seen!

it ies1. . .

Hies

ill illeitles

Id OM'I nielli and continuing.17 I inn iinriL-iiitiils

IK (>\ci ni!:h! aiul cii{') I ci in a}jri.viiicnl>>

. ._ J

I')K7

AI

I. HI

•I-I.OVK(M.WJ

7S.7I7S7,().17

7..WII0.07.S

'J.I'JJ•4..1S(i

1 LOSS'12.72)

S.0K7

1.4K9'1M

2..104

•'.S40' ' ,070' . M l'.',4MV20S4,'JSfi

II) SOS4..U.!

SO, s()9

101.410

I27.IS.1I M).-IX'.>

177.021II2.O7K

12.XdlS.S02

.1.1KI-Il . M K ,

2,l«dI s, /(,'/

I2').4-HI n.S.U

IVd.140IOK.X4I

Ma>

Positions

1 1.4S4

l!slo1.(1747.<i-144.477

i:.7(idS.9901,714ft,S91

2.612

4. IDS2O.2M7

Apr :'J

K..SII'6,4-lN2.794'2.224S SOI'd.W

11.4.10'K.SIXVIS'ld.44')'

40X 90SS.7S(,

I0.MSK.Sid1 OH1)d.7(i2

SSO1.M0

9S

1.7«4

1.1401.427d,')!~•I.V/4

I2.49SS.9724.1X1h.sso

1 , 1 1 ( 12 S S I

I2X9U,14'), 607

170,842122,dOK

llh.OMIS4.I9I

1S4.942H I .012

iiy 2"

14,01sft. 17(1!,dXI

17Sd,9ds4,202

,lS,.ld2S,')22•I.I)!1)6.711

s dl)722,dSO

ISJ .7IS

Id7.44412-1.19S

M;iy 27

ft.OKIl.'lXd

X.S491,414

1..S01d,279

.1,7 Id2.21 I

9K

4.7X920,1X1

I24.7.V/I s|)."19,1

171.210!24.IDS

I. Data Ib I pi i d > ii): obiilbinlllcd to Die I edcial Kesei vc Hank of New York by the I'.Secuiities dealers on its published list of primary deal'

Data lot pi

(l inkuhich ild ul'lc

^ arc averages nf daily li h l

p g y fIhc number oluadiiu! dass in Ihc pciioil. I'osi

bi D l i iu p

iniiliiicnl basis. Data lot' linancnt and arc based on Wcdncsdlii\mcdiate positions aui IK'I ainovints (i

ed In nonbankdcalci linns and dealei dnilincnt. Iliat is. trade date basis, ineli

par value, based onins ale net amounts and are show nale in terms of actual amounts

sceutiUes. Data lor inunvdiali: positions i lu mil mi1. ligures covei linaneiiiR involvinji U.S.

negotiable CDs. bankers aeceptanei4. Include

: i l sin .alelevins ot pal vahiesi ol securities

f il bklaitnients of coillinerilies that hav

obtained have been usetl as cs Inehliles both repurchase agree

"matched book" repuiehase agreeniLN o i l . Data on positions for the pi

estimated.

leie loiriuneii

ivalii posiuons.and ledeial aceney

lereial paper,those thai have been

Is undertaken to li

I Ma\ I to Sept .10. l9Xd, ar

(I agreements.

Federal Finance A33

1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt OutstandingMillions of dollars, end of period

Agency

1987

Jan. Mar. Apr.

1 Federal and federally sponsored agencies ,

2 Federal agencies3 Defense Department,4 Fxporl-lmport Hank"-5 Federal Housing Administration4

6 Government National Mortgage Association participationcertificates

7 I'oslal Service''8 Tennessee Valley Authority9 United States Railway Association6

10 Federally sponsored agencies11 Federal Home Loan Hanks12 Federal Home Loan Mortgage Corporation1.1 Federal National Mortgage Association14 Farm Credit Banks15 Student Loan Marketing Association*

16 Federal Financing [lank (k'tHy

Lending to federal and federally .\pon\oiedttfit'nvies

17 Hxport-lmport Bank18 Postal Service6

19 Student Loan Marketing Association20 Tennessee Valley Authority21 United States Railway Association'1

Other LendingFarmers Hume Administration.

240,1168

33.941)243

14.853194

2.1651.404

14.970111

206.12848.9.106,793

74,59472,816

3,402

135,791

14,7891,1545.00013,245

111

23 Rural Fleclrification Administration .24 Other

55.26619,76626.460

271,221)

3s.145142

15.882133

2,1651,337

15,43551

236,07565,08510,27083,72071,1935,745

145,217

15,8521,0875 (UK)13,710

51

58,97120,69329.853

293,905

16,39071

IS.678115

2,1651,940

16,34774

257,S1574,44711,92693,89668,8518,395

153,373

15,6701,6905,OIK)14.622

74

64,23420.65431.429

305,097

36.95235

14.274124

2.1653,10417,176

74

268.14586.89113,60693.47762.69311.478

157,452

14,2682,8544,97015,751

74

65.37421,53132.630

307,361

36.95833

14.211138

2.1653.104

17.22285

270.40388.75213,58993.56362.32812,171

157,511)

14.2052.8544.97015,797

85

65.37421.68032.545

305,114

37.04132

14,211136

2.1653.104

17.30885

268 07390.22513,49292,58859,98411,784

157,650

14.205'2,8544.97015,928

85

65,37421,71932,515

305,603

37.073'27

14.211147

2,1653.104

17.334'85

268.53091.31313.84791.52259,36712,481

157,724

14.2052.8544.97015.954

85

65.37421.74932,533

36,66024

13.813158

2.1653.10417,311

85

n.a.92.087n.a.91,61858.36413,230

157,012

13.8072,8544.970

15.9.3185

65.22421.47332.668

94,606n.a.

89,74157,251

n.a.

1. Consists oi mortgages assumed by the Defense Department between 1957and 1963 under family housing and homeowners assistance programs.

2. Includes participation certificates reclassitied as debt beginning Oct. 1. 1976.3. Off-budget Aug. 17. 1974. through Sept. 30. 1976; on-budgct thereafter.4. Consists of debentures issued in payment of Federal Housing Administration

insurance claims. Once issued, these seeuiities may be sold privately on thesecurities market.

5. Certificates of participation issued before fiscal 1969 by the GovernmentNational Mortgage Association acting as trustee for the Farmers Home Admin-istration; Department of Health, lulucation, and Welfare; Department of Housingand Urban Development; Small Business Administration; and the VeteransAdministration.

6. Off-budget.

7. Includes outstanding noncontingent liabilities: Notes, bonds, and deben-tures. Some data are estimated.

8. Before late 1981, the Association obtained financing through the Federali i HkFinanci9. Th

obligatincursinclude

ng Hank.e IT-'U, which began operations in 1974. is authorized to purchase or sellns issued, sold, or guaranteed by other federal agencies. Since FFHbt solely for the purpose of lending to other agencies, its debt is notin the main portion of the table in order to avoid double counting,l d FFB h f d d l h l

p g10. Includes FFB purchases of agency assets and guaranteed loans; the latter

contain loans guaranteed by numerous agencies with the guarantees of anyparticular agency being generally small. The Farmers Home Administration itemconsists exclusively of agency assets, while the Rural Hlectrification Administra-tion entry contains both agency assets and guaranteed loans.

A34 Domestic Financial Statistics I I August I9K7

1.45 NI'W SKCURITY ISSUKS Tax-Hxempl Slate and Local Governments

Millions of dollars

1

3

4s<<

7

K9

101 11211

Type uf iss

All issues, ncu and n-fu

Irp,- nl i>uwGeneral obligation. .Revenue

7v/><- nl issunSlateSpecial disti icl and statMunicipalities, counties

Issues for new capital, (

Use <>)•proceedsEducationTransportation , , . , . . ,Util it ies tmi\ conservaliSocial welfareIndustrial aidOther purposes

le

1<I

i l l

>ti

HI

or issuer,

UK1

I y authority^wnsh ips

1

19X4

106,641

26..IKSX0.1S6

9,1296.1.551)11,962

94,050

7.SS.17.SS2

17.84429.92K15.115I5./SK

I9K5

214.1X9

S2.622161.S67

1 1.004114, 16166,822

156,050

16,6.5812,07026,85261,1X112,89224,198

1986

114,606

44,80189,806

14,93579,2914(1,174

79,195

16,9481 1.66615.3X317,3325,594

47,433

O

9

27

62

3

1

-, .

- 4

190114

12726S«W

119

M0661136I7S184

" -

1986'

Nov

11,010

1.6079.403

68,1242,759

4,220

566841671

2,9114X34X1

lk-L .

15.662

4,4261 1.2 16

96]10,4114,2<>S

10,050

925IS 6

1.1653.944i X4S1 ,X29

Ji

7

1

.s1

1

n.'

.343

1(H),241

153275

,91 s

,930

45292

6X11X0

182X6

l-eh.'

X.969

1.641S.12S

1,3645.X251,7X1

2,774

4-IXI4S482527

X91,0X4

1987

M a r '

14.591

3,85310,738

1,21710,004U7«

4,4X0

659I I I444991.168

1.907

A p r ;

6,854

3,4493,405

4274,7901 ,(.37

.1.2.17

7749X

57146X

111,29S

May

5.451

2.7112,7-M

9782,5301 ,'M(,

3,944

64110959117647

2.178

1. l';n .iinouiHs of loiig-lL-im ^sucs based on date2. IncliKk-s school ilistrici.s !K-IIIIHHI^ Apiil I'JHd.

SoiiKf i s. SecuritieAssociaiion for' earlkMri l J i IN,

Dala ('(dala. I'

mpany Ulis new d

'Kinnmf>.ila sour

April 1W>.:e began w

Public Securitiesith the November

1.46 NI-:\V SI'X'URI'I 'Y ISSUKS Corpora t ions

Millkins of doltuis

1

4

6

X9

10

I I

P

n

14IS16171819

All Iss

/v,.r ,

Prival

Mannl

fransiPublicCoiilllHeal e

Sloeks

/V/)i-I'refcrConin

huhisl

1 vpe

es1 .

I'olh-

placi

ICllU i

ortatiutililv

slalc :

edon . .

Manufacturi

I'rimsiPublicConinReal c

ercialorlaliutilityunica

it issue or issuer.

in i,'

mem 1

and miscellaneous

[id financial

lg

onnil financial

19X4

1.12,5.11

109 » l

71 57936,124

2-1.6071 1.7264,694

10.6792,997

5 3,199

22,628

4,1 IXIX,510

4 ()S46 ">77

SK91.624

4199.665

I9XS

201,269'

165 754'

1I9.SS946.I9S

S2.I2K15,1405,743

I2.9S7I0.4S669.332

.15,515

6. SOS29,010

S.7009 1491,5441,966

97 KI6.I7K

19X6

.175,056'

11 S 2 2 6 '

212,465'80,761

78.5X4'17.277'9,734'

11.05X'1 s 4K9'

I'll,OKI)1

61,8.10

1 I.S1450,116

14,2349 is"*2,(921,7911,504

10.657

Sept.

16,1)9.1

12 810

I2.K29n, a.

2,1451,3X7

1751,915

4176.190

.1,26.1

4022,861

2501 009

2X174

01,802

19X6

Oct .

28,577'

21 471 '

23.471'n.a

2,05s1,067

1702,5171,255

16,1X7'

5.11)6

8174.2X9

S701,271

s 11410

592.28S

Nov .

28,822'

22 221'

22,221'n.a.

1

.378111

0,SK7,IS8.888'

6,599

1,1905,209

2.565SIS

15218104

3,162

Dec,

2 5 , I f *

IS ')2I>'

IK,920'n a.

1,7X6'2.067

702.498

7769,723'

6,248

1,2914.955

1.7X17091X1871101

2.601

Jill).

2.1,165'

20,250'

20,250'n.a.

• I . 1651.074

01,491

651.1,455'

2,'JIS

4292,4X6

165148

0217

16\I49

19X7

l-eh.

24,05.1'

20,286'

20,2X6'n.a.

1 6791,714

1002,715

''SO11,829'

.1,767

90S2,862

814417191509

91,8117

Mar, '

.1.1,08')

2.1,27')

21.279n.a.

6,3491,721

S2I694100

1 1,691

'>,XIII

2.2S77,553

2.0162,366

299907

S74,165

Api-.

21,70.1

I7.S27

17,527n.a.

2,1841,108

168l,!6(

10112.407

4,I7(

S !{

3,64(

77(2,I6.;

2161X9

IX8">(

I. f i gu res , which represent j;ross proceeds of issues inatui inf ; in more than ant-ear, sold \'nv cash in the Uni ted StateN, are pr incipal amouui or number o\' unitsmlhp l ied by o i fenng puce. I n c l u d e s offerings of less than il()0,()(K), secondary•Iferings. urulefinei l or exempteif issues as defined in Ihe Securit ies A d of I'J.U,mployee slock plans, investment companies other than c losed-end, in tn icorpo-iiie t ransact ions, and sales to foreigners.

2. Monthly data include only public oH'cmitts.t. Dala are not available {>n a monthly basis.SOI'RCI s. l l )D Infonnalion Services, Inc., IJ.S. Securities and Ivxchange

Commission and the Hoard of Governors of the Federal Reserve System.

Securities Market and Corporate Finance A35

1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset PositionMillions of dollars

Item

iNVr.STMl-Nl COMI'ANM.S1

1 Sales of own shares-2 Redemptions of own shares'3 Net sales

4 Assets'1

5 Cash position^6 Other

222,670132.44090,230

251,69520,607

231,088

411,739239,396172,343

424,15630,716

393,440

1986

Sept.

34,69021,33813,352

381,87229,540

352,332

Oct.

37,15020,78216,368

402,64430,826

371,818

Nov.

33,67220,72412,948

416,93929,579

387,360

Dec.

44.79634,8359,961

424,15630,716

393,440

1987

Jan.

50,11626,56523,551

464,41534.098

430.317

Feb.

36,30721,57614,731

490,64335,279

455,364

Mar.'

40,37824,73015,648

506,75237,090

469,662

Apr.

42,77337,1275,646

499,08645,031

454,055

1. Excluding money market funds.2. Includes reinvestment of investment income dividends, includes reinvest-

ment of capital gains distributions and share issue of conversions from one fund toanother in the same group.

3. Excludes share redemption resulting from conversions from one fund toanother in the same group.

4. Market value at end of period, less current liabilities.

5. Also includes all U.S. government securities and other short-term debtsecurities.

Non: . Investment Company Institute data based on reports of members, whichcomprise substantially all open-end investment companies registered with theSecurities and Exchange Commission. Data reflect newly formed companies aftertheir initial ottering of securities.

1.48 CORPORATE PROFITS AND THEIR DISTRIBUTIONBillions of dollars; quarterly data are at seasonally adjusted annual rates.

Account

1 Corporate profits with inventory valuation andcapital consumption adjustment

2 Profits before tax3 Profits tax liability4 Profits after tax5 Dividends6 Undistributed profits

7 Inventory valuation3 Capital consumption adjustment

1984

264.7235.795.4

140.378.362.0

-5.534.5

1985

280.6223.191,8

131.481,649 8

- 658.1

1986

300.7237.5103.5134.087 846.2

6.556.6

1985

Q2

274.3213.887.1

126.781.445.3

1.658.9

Q3

296.?229.295.8

133,481.651.8

6.161.0

Q4

2K5.6235.896.4

139.482.557.0

9.459.2

1986

Ql

296.4222.595.7

126.985.241.7

16.557.3

Q2

2W. 1227.799.0

128.887.541.2

10.654.8

03

302.0240.4104.4M5.988.847.2

6.155.5

04

311.2259.6115.1144.589.754.8

-7.258.8

1987

0 1 '

335.4267.6128.8138.891.447.4

6.974.7

SOUKCI.. Survey of Current Itusiness (Department of Commerce).

A36 Domestic Financial Statistics LI August 1987

1,49 NONFINANCIAL CORPORATIONS Assets and Liabilities1

Millions of ilolla ccpt lor ratio

Accoiuil

1 ( 'u rml l ussels

2 Cash.1 U.S. e,overnmcnt securities4 Notes ami accounts receivable5 Inventories(, Other

7 Current liabilities

8 Notes ami accounts payable9 Other

10 Net working capital

I I M l M O : Current ratio-

1980

I.32H.3

127.018.7

507.5543.0132.1

890.6

S14.4176.2

437.8

1.492

19KI

1,419.6

IIS.617.7

512.5584.0149.7

971.3

547.1424.1

448.3

l.4(.2

1982

1,437.1

147.82.1.0

SI7.4570.0169.8

9H6.0

550 74.15..1

451.1

1.458

I9X!

1,575.9

171.8

n.oSR1.061)1 4186.7

1,1159.6

595.746.1.9

516.3

1.487

1984

1,7113.0

173.(.16.2

611.1656.9201,2

1,163.6

647.8515.8

539.5

1.464

1,722.7

167.515.7

650.1665.720.1.5

1,174.1

636.9517.1

548.6

1 467

1985

Q2

1,734.6

167.115.4

654 1666,721 1,2

1,182.9

651.75.11.2

551.7

1.466

Q!

1,763.0

176.1.12.6

661 .(1675.(1218.(1

1,211.9

670.4541.5

551.1

1.455

04

1,784.6

189.2.11.0

(.71.5666.0224.9

1,233.6

(.82.7550.9

551.0

1.447

1986

Ql

1,795,7

195.1!l.(

661.4679.(226.1

1,222.3

668.45.51.9

573.4

1.469

I. l o r a description of this series, see "'Working Capital of Noniinancia!Corporations" in the July 197K Huiu . i iN, pp. M3- M. Data are not currentlyavailable after 198ft: 1.

2. Ratio of total current assets to total current liabilities.SOLKCI.. l-'ederal Trade Commission and Bureau of the Cen.su

[.50 TOTAL NONFARM HUSINKSS KXPKND1TURKS on New Plant and Hquipment ABillions til' dollars; quarterly data arc at seasonally adjusted annual rates.

Industry

1 Total nonfiirm business

2 Durahlc jioods industries1 Nondurable goods industries

NotwuuwliH tttiiti!;4 Mining

Transportation5 Railroad6 Air7 Other

Public utilities8 Hectr ic9 (ias ami other

10 Commercial and other :

1985

387.13

71.2780.21

15.88

7 084.796.15

36.1 112.71

150.9!

1986

379.27'

69.0871.65

11.25

6.6!6.265.86

11.9!12.51

160.10

1987l'

390.89

70.8675.05

10.45

6.066.766.58

32.0312.71

169.50

1985

Q4

397.88

75.4782.79

15.25

6.746.076.14

16.181.1.41

155.42

Ql

377.94

68.0176.02

12.99

6.226.585.42

14.2112.82

155.67

1086

Q2

375.92

68.1.171.15

11.22

6.775.775.74

11.8112.74

158.18

Q!

374.55

69.1169.89

10.15

7.115.696.0!

11.9111.99

160.25

Q4

388.69

70.6875.33

10.6!

6.256 996.24

.13.7812.49

166,11

Ql

372.24

69.7269.65

10.17

5.297.555.0!

10.8112.6!

160.49

1087

Q2'

392.02

71.0671.8!

10.85

6.126.766.10

1.1.5112.4!

168,86

US'

397.116

71.8476.61

10.60

6.846. 166.82

11.9712.82

171.19

ATiadeand services are no loin Commercial and other, line 1

I. Anticipated by business.

ely.Theyi of whole

:isurance; persSoiikci.. Sur

ale and retail Made; Ial and business services; and communication.v of Current Hu.utuw.s (Department of Commerce).

Securities Markets and Corporate Finance A37

1.51 DOMESTIC FINANCE COMPANIES Assets and LiabilitiesBillions of dollars, etui of period

Ass i . i s

1 Consumer2 Husiness3 Real estate4 To la !

Less:5 Reserves Tor unearned incomeft Reserves for losses

7 Accounts receivable, netK A l l other

(> Total assets

1 ,1 \IUI 1 1 MS

10 Hank loans11 Commerc ia l paper

Debt12 Other short- term13 Long- term14 Al l other l iabi l i t ies15 Capi la l , surplus, anil undiv ided prof i ts

16 Total l iabil it ies and cupit i i l

7 5.1100.4

18.7194.1

29.91.1

161.110.4

101.5

16.551.4

11.961.721,626,4

191.5

HI 1113.-420.5

217..1

3(1..13.7

IK!.2.14.4

217.6

IK.360.5

11.161.711.22K.9

217.6

89.9117.82.1.8

251.5

1.1.84.2

21.1.515.7

249.2

20.07.1.1

12.9

14.511.5

249.2

1985

Q!

108.614.1.726.1

278.6

18.04.6

216.046.1

282..1

18.991.2

12.485.518.2.14.1

282..1

Q4

111.4158. 328.9

.100.6

.19.24.9

256.545.1

.Ml 1.9

20.699.2

12.59.1.140.9.15.7

.Ml 1.9

1986

Ql

117.2165.929.9

.112 9

40.05.0

268.048.8

.116.8

19.0104.1

11.4101.042.116.7

.116.8

Q2

125.1167.710.8

121.6

40 75.1

277.848.8

.126.6

19.2108.4

15.41O.\240.118.4

.126.6

Q-i

117.1161.012.1

.110.2

42.45.4

282.459.9

.142.3

20 1

H2.X

16.0109.844.1.19.4

.142..1

Q4

1.16.5174.811.7

145.0

41.45.8

297. X57.9

.155.6

117.8

17.2115.64 ! 4.19.4

.155.6

1987

Ql

1.1.1.9182.815.1

151.8

40,45,9

105 559 1)

.164.5

17,1119,1

21.6118.446 141.8

.164.5

Noil. . Components may no! atltl to totals because o\' rounding.

1.52 DOMESTIC HNANCK COMPANIKS Business CreditMillions of dollars, seasonally adjusted except as noted

1 ype

1 Total

Retail financing of installment sales2 Automotive tcoinmereial vehieles)3 Business, indusli ial, and farm equipment

Wholesale financing4 Automotive5 Equipment6 All other

Leasing7 Automotive8 I-Ajuipment

commereial accounts receivable10 All other business credit

Accountsreceivable

outstandingApr 10.

1987'

185,182

27,52022.327

10.0755..1658.846

20.50739.619

16,74114.162

Chan Lies in accountseceivablc

1987

l-'ch.

1,850

602--429

1,08131

-41

161121

23886

Mar.

1,579

570-40

995- 2.15

269

77440

652155

Apr

3,5.14

7504

62076

515582

72.1290

Intensions

1987

1 eh.

28,19.1

1.0161.067

11.57165 «

2.919

1.259885

7,6191.177

Mar.

29,8.16

1,1181,255

12,676672

.1,064

1.148995

7.6641.224

Apr.

29,212

1,2001,352

11,474690

3,056

1,136970

8,1221.211

Repayments

1987

l-'ch.

26,342

4341.496

10.492626

2.960

1.099764

7.3811.092

Mar.

28,257

5681,295

11,681907

2.795

1,071555

8.1161.069

Apr.

25,678

4491,349

10,854614

3.0X2

622388

7,399921

These data also appearinside front cover.

in (he Board's (J.20 (422f release. Tor atklre 1, Not seasonally adjusted.

A38 Domestic Financial Statistics [] August 1987

1.53 MORTGAOK MARKKTS

Millions ol* dollars; cxceptitms noted.

PRIMARY M ARKI IS

Conventional inortUii^t'S on new homes7 m m 1

Purchase pi ice (thousands ol' dollars) .Annum! of loan (thousands of dollars)Loan/price ratio (percent)Maturity (years)lees and charges (percent of loan amount)-1 . .Contract rate (percent per annum)

Yield (pen cut per annum)7 I HI.BH wr ieVK IIU1) series'1

Yield ipereent per annum)(J I I I A mortgages (1IU1) series)'

10 CiNMA securities'1

I ' l l ) ! UAI N A I I O N A I MORKiAdl ASSOUAIION

Mortuaê holdings lend of period)II Totali : HIA/VA-insurcd1 * Conventional

\lortt;iti,'e trunstu tiotis idurini; period)14 Purchases '

Moriijdê cotntnifment.s'|s Contracted (durinj; period)l<> Outstanding (end of period)

I-1 ni RAI I I O M I L O A N MoKKiACit. CORI'ORA I ION

Morti;<U!e Iioldini;* (end of period)*17 Total '15 I 1IA/VAI'J Conventional

Morit;(txe tran.uti tion.\ (durini; period]20 Purchases7\ Sales

Tl Contracted (during peiind)

I WI

M;l-L'b. Mar, Apr . May

Terms and yields in pr imary and secondary markets

7.1.778.727.X2.64I.S7

2. .17.1.K0

t.KI1.1.1

1(14.177.477.126.')

11.12

1 I..SK12.2«

12.241 l .d l

I IK . IS(>,2TS.12(i.d2.4KM.K2

W.2S111.(17

').')!

124.2« . 5lh.127..12 M').4^

') 91').47

l).2dH.K.I

124,X'H,276.427.42.4(i1>.2S

'J.d'J'J..1.1

'J.2I8.62

112.ft97 17S.S27.72.219.14

9.M9.1)9

K.798.46

I !S 699,175.127,62.218.87

9,219.04

8.HI8.28

1.10.29X074.127.12.208.77

9.149,19

8.948.18

IK..9'100.9'IS.2'27.1'2.2.1'8.8'K

9.21'10.11

Aclivily in sccdiuliity maikc

81.1191\I484S.I9I

21,(K!76,184

9,281910

8,17.1

21.88618,106

12.601

94.V/414.24460.111

20.ISS.1,402

12,199841

I I ,S58

44,01218.901

98 04829,(.8.1

12.987.1.186

1.1.517746

12.817

101.474100.2.16

•4K,yHy I lO.H.S.S

98.21(124,10(171.910

1.8114,625

7071.607

9,86210,510

11.211

97,8952.1,12174,774

1,2721,186

11.564694

10.870

I 1,10511.169

96.18222,17874.204

94 K2,2.^8

10.964686

10,279

7,9508,269

7.685

95. M 422.06171.451

y i :2 . I 7 . S

11.161686

10.677

7.9617.840

9.197

95,14021.84.171.297

2,8051,519

94,40421,76572,619

.1,2084,421

1.11,7100.076.228.22.149,07

n.a.9.40

94.0(>421.99972.065

1,7264,41(1

1. Weighted averages hased on sample surveys of mortgages originated bymajor institutional lendei1 groups; compiled by the Federal Home Loan HankHoard in coopeiation with Ihe Federal Deposit Insurance Corporation.

2. Includes all lees, commissions, discounts, and "po in ts" paid (by theborrower or the seller) to obtain a loan.

.1. Average effective interest rales on loans closed, assuming prepayment at theend ni 10 years.

4. Average contract rates on new commitments for conventional first mort-gages: from Department of Housing and Urban Development.

5. Average gross yields on M.) -year, minimiim-downpaymciit. Federal HousingAdniinishalion-insincd lirst nun tgages for' immediate delivery in Ihe privatesecondary market, llased on transactions on lirst day o!'subsequent month. I ,argcmonthly movements in average yields may reflect market adjustments to changesin maximum pcrmissable contract rates.

6. Average net yields to investors on Government Nalional Mortgage Assttion jilliiranleed, moitgage-liackeLl, tll l ly moditied pass-lluouiih securities,inn preprevailWall S,

7. It'

9. Ir

liaymcnt in 12 yeats on pools of 10-yeat I I I A / V A alottj;ajies carrying, theceiling rate. Monthly lijiiues itre avetajies ui I'riday figures IVom the

• e e l ./<eludes

icludes |ichuiesc

4-liimily KJ Ihrouglcipatit

aiily and nonprofit hospital loan commitments inian commitments accepted in l-'NMA's free market

the I N M A - O N M A tandem plans.is well as whole loans.nd government-underwritten loans. I T l l . M C s mort

secuiilies swap [lrograms, while the corresponding data for I 'NMA exclude swapactivity,

Real Estate A39

1.54 MORTGAGE DEBT OUTSTANDING1

Millions of dolkirs, end ot period

Type of holder, and lype ot" properly

1 A)} holders

2 1- to 4-family3 Multifamily4 Commercial5 [;arm

() Selected financial institutions7 Commercial banks-8 1- to 4-family9 Multitamily

10 Commercial1 ] Farm12 Savings banks13 1- to 4-family14 Multitamily15 Commercial16 l-'arm

17 Savings and loan associationsIK 1- lo 4-family19 Multitamily20 Commercial"> 1 I ;arm22 1 ,ife insurance companies23 1- io 4-family24 Multitamily2*> Commercial26 Farm27 Finance companies1

2S Federal and related agencies29 Government Nalioiial Mortgage AssociationM) 1- to 4-family31 Multi lamily32 Farmers Home Administration4

H 1- lo 4-family34 Multifamily15 Commercial16 Farm

37 Federal Housing and VeteransAdministration

38 1- to 4-family39 Multif i imily40 Federal National Mortgage Association41 1- to 4-family42 Multifamily43 Federal I .and Hanks44 I- to 4-family4s [''arm46 Federal Home Loan Mortgage Corporation47 1- 10 4-family48 Multifamily

4') Mortgage pools or trusts^50 Government National Mortgage AssociationS[ 1- to 4-family52 Multifamily53 Federal Home Loan Mortgage Corporation54 1- to 4-family55 Multifamily56 I'ederal National Mortgage Association57 1- to 4-family58 Mullifamily59 Farmers Home Administration*1

60 1- to 4-family61 Multifamily'>2 Commercial(S.I Farm

64 Individuals and others'1

65 F lo 4-fainily6li Mull i lamily67 Commercial68 Farm

1984

2,033,654

1.317.94(1185.414418.3(10112,OIK)

1 269.702379,498I%,I6320,264

152,89410,177

154,441107,102

19,81727.291

31

555,277421.48955.75077,605

433156,69914,12018,938

111,17512,46623,787

158.9932.301

5X51.7161,276

213119497447

4,8162,0482,768

87,94082,175

5.76552.261

1,07449,18710,3991.654

745

332,057179,98!175,589

4.39270.82270 ''53

56936,21535,965

25045 03921,813

5.8417,5599.826

272.902153,71048,4X041,27929,433

1985

2,266,92,1

1,466,771213,816480,719105,615

1,390,394429,196213,434

23,373181,032

11,357177,263121,87923,32931.973

82

583,216432,422

66,41083,798

606171,797

12,18119.894

127,67011,85228,902

166,9281.473

519934711183111159278

4.9202,2542,666

98,28291 966

6.31647,498

2,79844,70014,02211,8812.141

415,042212,145207,198

4,947100,38799,5 IS

87254,98754,036

95147,52322,1866.6758.190

10.472

294, -559165,19955,19547,89726,268

1986

2,566,386'

1,667.055'246 92V554,711'97,673'

1.508,599'502,534'235,814'

31,173'2n2 799'

12,748'226,409'156,236'30,476'39,592'

105'

551,080403,611

66,89882 070

SOI192.975

12,76120,847

148,16710,99813,601

201.81X188947

84248,42121.625

7,60S8.446

10.742

5,0472,1862,6(il

97,89590.718

7,17739,9842,353

17,61111,56410.010

1.554

529,763260,869255.132

5,737171,372166,667

4.70597,17495,791

1,383348142

n.a.13274

124.224180.15965,86453,32724,874

y i

2,315,962

! ,494.603221.587495,879103,893

1,408,665441,096216,290

25,189187,620

11.797188.154131.38123,98032,707

86

574,732420,07367,14086,860

659174,823

12,60520,009

130,56911,64029,860

165,0411,511

5271,006

704217

332172.17

4,9642,1092,655

98.79592,315

6.48045,422

2.67142 74913.62112,2311.392

440,701220,148215,148

5,200110,337108 020

2,31762,31061,117

1,19347,70622.0826.9438,150

10,531

301.555167,75557,85(149,75626,194

1986

02

2,.W3,!>8»

1.543,681229,145509,574101,589

1.415,417456,163221,640

26,799195,484

12,240201,198142,17426,54314,577

104

565,037413,865

66,02084.618

534180.041

12.60820,181

115.92411.32830,798

161,398876

498275701466A

111247

5,0942,4492,645

97.29590.460

6,81543,369

2,55240,81714,19411 8902,104

475,615229,204223,838

5,166125,903121 676

2,22772.17771,151

1,22448,11121,987

7,1708,147

10.627

311.539174,19660,93850,51325,692

03

2,469,796'

1,607,113'237,410'525.122'100,151'

1,464,21V474,658'228,591'

28,623'204,996'

12,446'215,036149,78628,40036,762

88

557,139408.152

65,82782,644

516185,269

12,92720,709

140,21311,42032,111

159.505887

4X81945713257

115153

4,9662,3312,635

97.71790.508

7.20942,119

2.47839.64111.15911.1272,232

122,721241,230235,664

5,566146,871143 714

3,13786..15985.171

1,18848,26121.782

7,3538,409

10,717

323,357182,56963,63551,98125,170

Q4

2,566,386'

1 667,055'246,925'554,713'97,673'

1,508,599'502.534'235,814'

31,173'222,799'

12,748'226,409'156,236'10,476'.19,592'

105'

553,080403,61166,89882,070

S01192,075

12,76320,847

148,16710,99833,601

203,SIX)88947

84248,42121,6257,6088,446

10.742

5,0472.1862,661

97.89590.718

7.17719.9842.351

17 61111,56410,010

1,554

529,763260,869255,132

S.717171,372166 667

4,70597.17495,791

1,383148142

n.a.13274

324.224180.15965,86453,32724,874

1987

01

2,625,342'

1.711,106'250,254'567,980'96,002'

1,525,130'518,998'241,871'

31,869'212,000'

13,258'227,087'156,681'30,574'19,725'

105'

.547,381'399.042'66,781 '81,122'

418'196,575

12,76320,997

151,86710,94815,087'

198,728'84646

80048,201'21,190'

7,7)0'8,463'

10.640'

5,0912,4402.651

95,14088.126

7,01418,6842.276

.16,40810,7649,6101,154

573,372'277,186'271,065'

6,321'187,962182 8S7

5.105107,673106,068

1,60535 F154'

n.a.12770

328 112181,62867,67354.67624,135

1. Based on data from various institutional and governmental sources, withsome quarters estimated in part hy the I'ederal Reserve. Multifamily debt refers toloans on structures of live or more units.

2. Includes loans held hy nondenosit trust companies hut not hank trustdepartments.

3. Assumed to he entirely 1- to 4-family loans.4. Fin 11A-guaranteed securities sold to the Federal 1''inane ing Hank were

reallocated from F'mHA mortgage pools tbecause of accounting changes hy the Fa

5. Outstanding principal hal.or guaranteed by Ihe agency iw

6. Other holders include meand local credit agen

on hinds, credit unions

icaied.tgage coi

) l-'mKA mortgage holdings in I9K6: 4,iners Home Administration,

irlgage pools backing securities insured

upanies, real estate investment trustsid local retirement funds

id other U.S. agencies.noninsuied


.55 CONSUMHR 1NSTAI.I.MKNT CRV.Dll' Total Outstanding, and Not Change, seasonally adjustedMillions of dollars

1

-1

14s(.7

X9

101 112

1 114IsIf)

IK

1')20.'122

^124

267.728

2')

1111117

14IS

1617IX.19411

414741444S4()

174X49Ml

S|

S2S 1-4ssS()

Holder, mid lype of credit

Total

«v muior holderCommercial hanks.Finance companies1

Credit unionsRetailers"Savings institutionsGasoline companies

HY major Ivpe ol trainAutomobile

( oinmeicjaS baoks( letlit unionsFinance companiesSavings inslilutions

Rcvolvim;Commercial hanksRetailersGasoline conipaiues

('[edit unions

Mobile homeCotntnefci,tl banksHnancc companiesSavings institutions

OtherCommercial hanks

( retlit unionsRetailersSavings institutions

Tntil!

Wv muior holderCommercial banksFinance companies-1

Credit unionsRetailers1

Savings institutionsGasoline companies

Hv major npe ol ereililAutomobi le

Commerc ia l hanksCredit unionsFinance companiesSavings inst i tut ions

Revolv ingCommerc ia l hanksRetailersGasoline companiesSavings inst i tut ionsCredit unions . ,

Mobi le homeCommerc ia l hanksFinance companiesSavings inst i tut ions

OtherCommerc ia l hanksFinance companiesCveuit unionsRetailersSavings inst i tut ions

1985

522,SOS

242.0X1111.07072.1 I1)18.86412.4.11

4.21s

2<>K,O579t 00115,61170.091

9.128

122.0217S.86614,69s4.2.1s

1.520

2s 4XX9, SIX9,191O.S59

167.2.19f)l,f>7711.S8X14,9644,l(>9

.10,841

76,622

.12.9262.1,566

6,4911 ,(>(>()

12,10112<>

.15.70s9,10.15,1.10

17,840'SAM

22,40117,721

1.488126

2,771.S47

778K5

4011,2(iX

17,7)86.1X7d. l 11

616172

4,612

19S6

577,784

261.6(14l.Vvl'M77.XS740 S8658,017

.1,205

24S.O5S1(10.709.19,02991,v /412,041

114 91881,65716.240

1.205

2.128

.25.71(1N.XI29,0287,870

172,0X166,411

16.7004,146

10.412

54,979

19 52021.4241,7181,7225.6041 ,»!«

16,9987,7061.194

21.1812,715

12.9179.78h1.5451.0102 OOX

60 X

n ,

726161

1,.) 1 1

4,8422.754

6041 716

177429

Aug.

56.1,6611

217 4X2129,2657 s 61740..17957 124

1.172

211.21)1)Wi.S7117,91684 X6X1 1.145

1 11.1X084 S4S16.02X.1,172

1.910

25.9.199,05 s9.U77,547

171.14167.011

IS.XII4.1SI

11,107

5,601

1.7.1X1 .X8S

772^21

1.024.19

,1.,1/XX99.1X7

I.X02290

999s5K201

19

59

487177

196

1.1 761S2161126

2(1117

Sept,

Ai

571,280

218,9901.15,51676,29940,45556,687

.1.111

M9.01498.01718,24891,2411 1.46X

11.12184 4 1016,086

1,111

1.966

25.7.(29,(1169,2167.500

171.41 167.487

16,0814.169

10,411

7,620

1,5086.251

66276

8.17V)

7.8141.186

.1.126.171

77

S711 s58191756

^07

w12147

7047ft

2274

18696

1986

O c ,

576.H74

260,94(1I.1K,I1W70,991•10 S6S17.046

1,289

241,40099 IKS18.1979 (.7X61 1.612

11.1.81684 X6X16.190.1.2X9

2.024

21,7X49,(1259.1497,610

171,87467,662

16,1744..17S

10.110

Net ehai

5,594

1.9502.522

6961 1015944

4,.1X6I .PX

.1492,141

164

6914 «10444

117

sxS T

<)

67

no46117545

2896

S2

Nov.

577,656

262.949116,11477.SOX40 49657,168

1,221

241,00"100,221

1X.X54921 1.742

114.191XS 47616.1.17.1.221

2. I7X

25.7.118,9519,0917,689

174.52'J68,1S|

16.S/64,159

10,208

a

ge (di nng pt

7H2

2 1091,724

51169T )

6X

19S816217

1.5981 10

S7SS5X

St688454

s t74S879

6SS6X9

69202

16|S|

Dec.

ot pevio^

577,784

261 604116.49477 85740.586SK 017

1.20S

24S OSS100.709

19,02991,27412.041

1 14.9.1885.65216.2401,205

2,128

2\7HIX.SI29.O2X7.X70

172,08166,41114,19216,7004,146

10,412

1

rioili

I2H

1,1451X014990

86916

2,(15048X175

1,0X6.101

547->->(,10.1

161X4SO

^111961

1X1

2 448I.V20

84.1124

11204

Jan

578.57S

'61 694115,81)2

IX ""X440,617SK 9«(>.1.276

245,472101,189.19,24.192,61712,22.1

114.916XS 19516.2771.276

2.1 19

2S,«S2X.7879.0777.988

172,.1.1866,122

16.9014,140

!U,K<i7

794

90692427

11869

71

417680214657180

2171771

116I I

142">S49

118

25710984

2016

'15.1

198

rFeb.

579,5'H

262,1051 16 00978,49240,644S9,«M.1.111

246 (164I0I.68X

19,14797 7X012,249

US 661X6,[)5i16 1081,111

2,145

25 7X9X.7.199 04 s8.00S

172 0766s,62s

(6 9994 116

MI.912

1.(1 IJ

41 1207208

">y125

ls

59229910416.126

747618

U15l(>6

61481217

^62497

75984

65

.....Mar.'

579,91.1

261,9111 16,05078,S(,940 46959 4UX

.1,405

246,290IOI.*2X19,1X691,01212,144

1 15. l « )85.56716.1411.40S

2.147

2S.6I48.72S8,8218,067

172,84466.1 1 114.19617,0164,127

11,172

.122

1724177

175457

94

22616(119

2.1295

49748616794M

2

17514

m

62

76848S

1.1179

240

Apr.

582.S40

261 108117,09178 X7140,4671') 5X2

1,522

247 1X6101,54819 11791,7IX12,161

1<6,S9XX6 X6116.119.1,522

2,156

25.6)1X.7I6X.XI6X.079

171,44666.1X1

17.1784.12X

.11,221

2,927

1,1751,041

102

94117

X9()20

151706

19

l,4!21,296

~>117

179

i,

9

12

602f)K

141142

149

. 1 he i loaids seiies cover inoslindividiials thai is scheiluled In bi or more installments.

lion- ami iiilcrmediak'-lcun ordif extendedrepaid (or has the option of repayment) in

2. More ilctail lor linance companies1. Fxchldes .10 -day charce credit he4. All data have been revised.

I by travelin (he (i-20 statistical releasmd entertainment companie

Consumer Installment Credit A4I

1.56 TERMS OF CONSUMHR INSTALLMENT CREDITPercent unless noted otherwise

l leni

I N I K K I S r K A I I s

Commercial banks'1 48-monlh new car2

2 24-monlh personal3 120-month mobile home-4 Credit card

Auto finance companies5 New car6 Used car

OTI I I .R I'I.RMS1

Maturity (months)7 New car8 Used car

Loan-lo-value ratio9 New car

10 Used carAmount financed (dollars)

! 1 New car12 Used car

1984

13.7116.4715.5818.77

14.6217.85

48.139.7

8892

9,3335,691

1985

12.9115.9414.9618.69

11.9817.59

51.541.4

9194

9,9156,089

1986

11.3114.8213.9918.26

9.4415.95

50.042.6

9197

10,6656,555

Oct.

n.a.n.a.n.a.n.a.

6.1215.17

45..142.2

9297

11,3406,746

1986

Nov.

IO.5814.1913.4918.09

11.8315.20

51.442.6

9397

11,1606,946

Dec.

n.a.n.a.n.a.n.a.

11.7115.12

53.342.7

9398

10,8357,168

Jan.

n.a.n.a.n.a.n.a.

11.6514.62

53.X44.8

9498

10,9027,067

1987

Feb.

10.3514.1013.4218.10

10.7814.56

53.644.7

9499

10,6027,075

Mar.

n.a.n.a.n.a.n.a.

10.5914.40

53 744.9

9499

10,6417,145

Apr.

n.a.n.a.n.a.n.a.

10.8114.49

54.345.(

9498

10,9467,234

1. Data for midmonth of quarter only.2. Before 1983 the maturity for new car loans was 36 months, and for mobile

home loans was 84 months.

3. At auto finance companies.N o i r . These data also appear in the Board's G.19 (421) release. For address,

sec inside front cover.

A42 Domestic Financial Statistics I I August 1987

1.57 FUNDS RAISKI) IN U.S. CRKIMT MARKI-TS

liillicms ol' dollars; half-yearly data are al seasonally adjusted annual rales.

1 Total net borrow ing liv domestic lioiithiancial sectors .

Hy \i-rlor tin,I iii.\lriinu-iil2 U.S. govcinmenl3 Treasury seem [tics4 Agenc\ issues ami mortgages

5 Private domestic iHiiiriiianeiat sectors6 Debt capilal insluanents7 l a \ exempt obligations8 ( o r p o i a l c bonds9 Moitgagcs

10 Home mortgages11 Miilnramih resiilciilialI? CommercialLi barm

14 Oilier dcbl nislniineiilsIs Consumer credit16 Hank loans n.c.c17 Open market paper15 Oilier

I1) H\ borrowing sccloi20 Slate and local governments21 Households?2 Farm21 Nonlai in noiicorporale24 Corporale

2s Foreign ne! borrowing in Uniled Slates26 Honds27 Hank loans n.c.c28 Open market papei29 I .S. government loans

10 Total domestic plus foreign

11 Total net liorroiving In financial .sectors . .

Ih itiMrmtN'n!12 l i .S. goveinincnl related11 Sponsored credit a g e n a sccurilics.14 Mortgage p n ( ) | sccurilics3s Loans troni U.S. govcriunenl.id I'rivalc financial scclois37 (01 poiate bondsIS Mortgages19 Bank loans n.c.c10 Open inarkel paper11 Loans from Federal Home Loan Hanks

llv ii-rlnr42 Sponsored cicdil agencies4.1 Mortgage pools4 1 I'tivate financial scclois4s Commercial hanksId 11.ink affiliates47 Savings and loan associations48 Finance companies49 k i l l s

M) Tutul lift bm lowing

I I ' .S . government s c a n 'ilies ,?. State ami local obligations , .3 Corporate ami Ibrci^n hotuls•* Mortgages5 ( oiisuuici credit(i Hank loans n.c.c7 Open market paperS Oilier loans

50 Total new share issues

60 Minimi funds61 All other62 Nonfiiiancial corporationstil Financial corpoialions64 foreign shales purchased in United State

111

1986'

175.8

87.487.8

.5

28K.5155.5

21.422 8

109 1

4.8T l 1

10.0

131.022.65/.t>14.7.18.7

28S.56.8

121.416.63K.5

105,2

21,5s.41.01.9

11.1

199..1

.187.4

161.1162 1

9

226.2148.344.2IX.785.4

s.42S 2

4.2

77.917.752.9

6.113.4

226 221.588.4

d.K40.269.2

16.06.7s s1 9

13.0

411.1.4

18fi.fiIKfi.7

162 n

252.851.716.0

18.1.0117.1

14.149.0

2.8

109.556.82S.X

827.7

162.2.14.0

18X.04 .1

7(i.dS"1). 1

17.4.1.11.6

198,8199.0

5.17.5114.050.446.1

217..S129.925.161.1

.8

241.595.0H0.121.746.6

557.527.4

2.19.5.1

97.1191 4

d.l1.1d.fi6.25.1

221.6221.7

645 7461.7152.47.1.9

215.4150,129.262.4

6,4

184.096 641.114.611.4

645.7107.8295 0

11.692.8

161.7

1.74.«2.86.25.7

H.U.II

214.1214.7

.1

619.6461.7

49.51117298.5199.2

11.071 7

7.4

157.965 871.0

9.110.1

619.659.4

282.114.4

114.6178 0

9.71,21,0

1154.0

1X1.1181.5

54d.5298 4

42,8.11,2

224.5115 227.5d2 9

I.I

248.198.791.9'4 «12.7

546.5\5 n

2.12.8.4

101.4IK7.4

.15.51.1

18.018.7

216.1216.4

I

568.5129.658.0d l . l

210.5

218.991.168.418.760.5

5ti8.529.6

246.2s

92.7199.5

21, 11,5

11,15,68.1

761.5

201.8201.9

5.10.K155.467 572.7

215.211.1.124.660.1

2.8

175.497.174.912.140.9

5.10.856.8

25.1.65.9

85.6140.7

4.1S.5d.l4 27.8

245.5245.5

7fi0.fi5d8 0217.1

75.1255.7167.511.764.4

192.695 957.7ld.922.0

760 6158.7.136.4

21.199.9

186.8

7.52.d

.48.2.l.d

706.0

211..1211.4

.1

494.7192.1

15.91.17.0219..1156.110.859.7

7.4

102,470,617,d15.729.9

194 715.7

15.194.4

157.1

24.17.11.4

20.64.8

7.10..1

962.5

217.5218.0

.5

745.1511.2

8.1.190.4

157.7242.1

15.187 7

7.4

211.961,6

124.41.0

.10.7

745.08.1.2

142.11.1.7

114.7198.6

5.(1.8

1.52.4

- .1.1

957.6

f iiuuicial sectors

(11.9

47.4.10. S15.0

: 954.5

4.4

1.212.716.2

32 4)5 0S4.S11.69.2

|5.518.5

911.1

64.914.949.5

.42s.212,5

.11.99.9

.8

15..149.5is ;i

1IV6.82.54.3

94.0

67.81.4

66.4

26 212.1

.121.1

7.0

1.4(>().426.2

5.012.12.1

11.4

1.19.0

74 930.444.4

64 A2 1 . 1

.4

.724.115.7

10.444,464 1

7.315.622.717.8

.8

186.9

101.520.79.

185.36.

2 (

14.2

21.779.98s.14.9

14.522.3^2.8

.s

248.4

I1!.712.6

161.4.4

74.X26.6

.14.0

24.219.8

P.2161.474 8

1.64.5

29.244.1

.6

1.14.2

69.829.140.7

64^417.3

.4

.111.115.7

29.140.764.415.421.720,2

4.3.8

14.1.8

80.011.848.2

' M.X29.1

.41.4

17.015.7

11.848,261,8

,97.5

25.131.3

.8

154.8

92.925 167.6

61.93 V.I

,911.911.7

25.367 661.9

9 21.1.712.144.8

.5

2IN.9

110.215.992.1

-} i

108.837.7

.14.2

50.116.7

18.192.1

108.8.6

15.1.12.fi60.9

.5

185.9

129.54.4

124.3«

56.425.5

.62.4

14.41.1.5

5 2124..1

sd.4d.71.7

21.117 s

.9

.110

217

9

820.«

198.61

9327

53426

19

517461-,

3198.691.1

735

54.1

50.61

All scctim

0...1

I ' l l2 ' 412,6

22.6(d 251 168.0

49.1.5

225.944.217.885..17.749..•

5.727.(

(.60.2

254.451.711.2

181 056.829.126.924.K

901.4

271.850470.7

217.895.074 252.067.6

1057.8

124 2152.4114.4215.496 641.052.841.0

1092.1

188.449. s

141.5298.6

6S.874.026.445.8

42.849.6

224.898.789.671.867.1

905..1

296.458 091.9

210.891.358.830.168,1

8.1.U

294,867.5

11.1.5215,2

97 119.8.10.444.8

1,2.12.4

153.5237.1115.3255.795.9(P 375.217.1

J16.2

140.015.9

169.d2 19.9

70. d21.419.1.19.4

1268.5

43d.98.1.(

117.4.157.1

61.6126.6.1.3.452.3

- J . . I

6 09 3

11.51,9. 1

.1.1.6

16.816.811.44.0

67.0

32.114 928,1

2,71.9

-.11.1

18.0

77.06.7

10.1.465.981.6

119.5

191.7•72.180.8

7.01.6

19 179.484.5

5.9.7

- 2 2 . 2

ifi.fi

MA7.61.0

.1.1..1

91 660.475.711.04.1

41.6

•.13.171.587 512.4

l.d

146.X

198,7- 52.0

(•8.78 18.5

92..1

184.692.392.7

5.75.3

Flow of Funds A43

1.58 DIRECT AND INDIRECT SOURCKS OF FUNDS TO CREDIT MARKETS

Billions of dollars, except as noted; half-yearly data arc at seasonally adjusted annual rates.

Transact ion category, or sector

1 I'tttul funds Hdvitficcd tit credit markets to (lomvstitnonfinancii i l sectors

Hy pttbtic amende* ttiul jotei^n2 Iota] net advances3 U.S. government securities4 Residential mortgages5 F t l L B advances !o savings and loans6 Other loans and securities

' tota l advanced, by sector7 U.S. government8 Sponsored credit agencies9 Monetary authori t ies

10 Foreign

Agency and foreign borrowing not in line 111 Sponsored credit agencies and mortgage pools12 Foreign

Private (Itmu'stii lunch advanced13 Tota l net advances14 U.S. government securil ies15 State and local obligations16 Corporate and foreign bonds17 Residential mortgagesIH Odier mortgages and loans19 l.r.ss: Federal Home Loan Bank advances

., . . . . . . . .

20 Credit market funds advanced by private f inancialinst i tut ions

21 Commercial banking22 Savings institutions23 Insurance and pension funds24 Other finance

25 Sources of funds26 Private domestic deposits and KPs27 Credit market borrowing

28 Other sources29 Foreign funds30 Treasury balances31 Insurance and pension reserves32 Other, net

Private domestic noiifinaiiciid inve\tor\33 Direct lending in credit markets34 LJ.S. government securities35 Slate and local obligations36 Corporate and foreign bonds37 Open market paper38 Other

39 Deposits and currency40 Currency41 Checkable deposits42 Samll t ime and savings accounts43 Money market fund shares44 Large time deposits45 Security Ki's46 Deposits in foreign countries

47 Total of credit market instruments, deposits andcurrency

48 Public holdings as percent of total49 Private f inancial intermediat ion (in percent)50 ' to ta l foreign funds

M I . M O : Corporate equities not included above51 Total net issues52 Mutual fund sharesS3 Other equities54 Acquisi t ions by f inancial institutions55 Other net purchases

1981

375.8

104.417.123.516.247.7

24.048.29.2

23.0

47.423.5

342.3115.923.419.8SI.5

145.916.2

320.2106.526 293.594.(1

320.2214.5

54.5

51.2- 2 3 7

-1.189 613.6

76.637.111.1

- 4 . 01.4

31.0

222.49.5

18.547.3

107.536.0

5 21.7

299 0

26.293.6- . 7

-3..36.0

- 9 . 319.9

-23.2

1982

387.4

115.422.761.0

.830.8

15.965.59.8

24.1

64.916.0

352.9203.1

44.214.85.3

96.9.8

261.9110.221.886.243.7

261.9195.225.2

41.5-31.4

6.192.5

-25 .7

116.369.925.0

2.0- 1 . 320.6

204 S9.7

18.6135.724.7

S ">n.i- .4

120.7

28.674.2

7.3

33.616.816.827.66.0

1983

548.8

115.327.676.1-7.018.6

9.769.810.924.9

67.817.4

518.7226.9

53.714.655.0

161.57.0

391.9144.3135.697.814.1

391.9212.226.2

153.416.3

- 5.3110.631.8

153.095 539.0

-12.715.116.2

229.714.328.8

215.344.1-6.318.53.1

382,7

20.475.541.3

67.032.134 946.820.2

1984

756.3

154.636.056.515.746.5

17.473.38.4

55.5

74.96.1

682.7237.8

50.432.698.5

279.115.7

550. S168.9149.2124.0108.3

5 SO 5

317.664,1

168.85.44.0

112.546.8

196.4132.929.63.48.9

28.3

321.18.6

27.8150.747.284.97.0

- 5.1

517.4

20.380.660.9

- 3 1 . 138.0

- 69.18.2

- .39.4

1985

869.3

203.347.294.614.247.3

17.8101.521.662.4

101.51.7

769.2277.0152.441.284.8

228.114.2

554.4186.383.4

141.014.3.6

554.4204.8

85.3

264.217.710.3

107.0129.2

300.2150.959.213.251.825.1

215.112.442.0

137.5

I O1.3.42.1

515.3

23.372.180.1

37.5103.4-65.9

33.34,1

1986'

834.0

311.187.8

158.519.845.0

10.9176.630.293.4

173.79.7

706.2300.649.579.073.7

223.219.8

647.9194.8105.3137.2210.5

647,9242,3

74.8

330.812.41.7

120.0196.6

133.181.017.812.31.4

20.6

262.714.499.4

123.120.88.27.26.0

395.8

36.991.7

105.8

119.5191.772.125 294! 3

1984

111

727.8

132.526.852.715.737.5

9.074.0

8.840.7

69.835.5

700.5224.4

42.825.6

109.9.31.3.6

15.7

581.8184.2173.5144,579.5

581.8300.2

64.4

217.23.0

.1146.567.8

183.1142.2

25.026.8IS.726.9

311.313.129.4

136 430.293.410.8

- 2.0

494.4

17.483.14.3.7

- 4 0 . 1.39.3

- 79.44.1

36,0

112

784.8

176.645.260.215.755.5

25.772.S

8.070.4

80.023.3

664.9251.2

58.0.39,687.0

244.715.7

519.1153.5124.9103.51.37.2

519.1334.963.8

120.47.88.2

78.525.9

209.6123.634.319.92 1

29.7

330.94.1

26.3164.964.276.5

.3.18.2

540.5

23.278,178,2

- 2 2 . 236.6

- 5 8 . 8

20.6-42.7

1985

111

732.6

201.853.185.611.751.4

28.898,223,751.0

92.94.1

619.6241.7

67.549.772.0

200.411.7

471.3133.863.0

121.8152.7

471.3203.0

61.9

206.511.214.497.483.5

210.2130.820.525.4

7.326.3

215.915.818.2

167.14.2-.8

14.3-2 .9

426.0

27.776.162.2

33.393.6

- 6 0 . 454.020.7

112

1,006.1

204.941.3

103.716.743.2

6.7104.9

19.573.8

110.27.5

918.8312.2237.3

32.797.5

255.916.7

637.4238.8103.9160.1134.5

6.37.4206.6108.8

322.024.3

6.1116.6175.0

390.2171.098.0

1.096.324.0

214.39.0

65.8108.0- 8.628.912.51.3

604.5

20.269.498.1

41.6113.171.512.629.0

1986'

HI

706.0

267.685.4

121.013.547.7

12.9135.3

9.8109.7

129.524.3

592. !254.5

15.9104.265.9

165.01.3.5

572.4106.9101.4128.62.15.6

572.4224.5

56.4

291.5.9

5.5104.5191.5

76.141.4

- 2 1 . 849.3

- 13.821.0

241.610.983.1

119.529.0

.9-7.96.2

317.8

36.696.7

110.5

146.8198.7-52.0

35.4111.4

112

962.5

354.590.1

196.026.242.3

9.0217.9

50.677.1

217.85.0

820.9346.8

83 053.981.4

281.926.2

724.0283.0109.3145.91X5.X

724.0260.3

9.3.1

170.524.0

9.01.35.5202.1

190.0120.957.424.716.719.8

284.017.9

115.9126.7

12.717.322 35.7

474.0

37.088.2

101.1

92.3184.692.315.177.2

N O I l^S HY 1 I N I . N U M 1 H . K .

1. Line 1 of table 1.57.2. Sum of lines 3-6 or 7-10.6. Includes farm and commercial mortgages.

I t . Credit market funds raised by federally sponsored credit agencies, and netissues of federally related mortgage pool securities.

13. Line 1 less line 2 phis line 11 and 12. Also line 20 less line 27 plus line 33.Also sum of lines 28 and 47 less lines 40 and 4(>.

18. Includes farm and commercial mortgages.26. Line 39 less lines 40 and 46.27. Includes equity issues and investment company shares. Includes line \9.29. Foreign deposits at commercial banks, bank borrowings from foreign

branches, and liabilities of foreign banking agencies to foreign affiliates,less claims on foreign affiliates and deposits by banking in foreign banks.

30. Demand deposits and note balances at commercial banks.

M. Excludes net investment of these reserves in corporate equities.32. Mainly retained earnings and net miscellaneous liabilities,33. Line 13 less line 20 plus line 27.34—38. Lines 14—1S less amounts acquired by private finance plus amounts

borrowed by private finance. Line 3S includes mortgages.40. Mainly an offset to line 9.47. Lines 33 plus 39, or line 13 loss line 2H plus 40 and 46.4N. Line 2/line 1.4l). Line 20/line 13.50. Sum of lines 10 and 29.51, 53. Includes issues by financial institutions.No 11.. Lull statements for sectors and transaction types in flows and in amounts

outstanding may be obtained from Mow of Funds Section, Division of Researchand Statistics, Hoard of Governors of the Federal Reserve System, Washington,D.C. 20551.

A44 Domestic Nonfinanciul Statistics G August 19X7

2.10 NONHNANCIA1. UUSINKSS ACTIVITY Selected Measures1

1977 KM); monthly and qtiiirtci'ly data are seasonally adjusted. Exceptions noted.

Measure

1 Industrial proiliR'tioii

Market i,'nnif>int,'\2 Products, total.\ f ina l , total4 Consumer goods> Kquipmenl6 Intermediate7 Maleriais

Industry i!roi<pini;sH Manufacturing

Capacity utilization (percent)"9 Manufacturing

10 Industrial materials industries

11 Construction conlracts (1(JK2 LOO)1

12 Normyi icultui al employment, total11

U (ioods-producing, total14 Manufacturing, lotal15 Manufacturing, production-worker. . . .Id Service-producing17 Personal income, total18 Wages and salary disbursements1'J Manufacturing ,

21 Retail sales''

Prices22 Consumer (1967 100)21 I'roiliicer finished |!IMKIS ( l%7 1001 . . .

1984

121.4

126.7127..1118.01 19.6124.7114.2

12!.4

Ml. 5S2.ll

1.15.0

114.610l.fii)8.494.1

12(10191.5184.8164.6191.617').(1

l l l . l291.1

1VK5

12.1.8

1.10.8m . i120.2145 4110.0114.2

I2d.4

80.180 2

148(1

118.4102.498.192 9

125.02O(i.2197.8172.52os o190.6

.122.2291.7

198fi

125.0

111.21.12..1124.4142.71.16.411.1.9

129.1

79.878.5

155.0

121.5102.497 592.1

129.4216.820H.6176.7215 5199.1)

128.4289.6

Sept.

124.9

l .H. l112.2124.2142.81.17.0in. .s

129.5

79.678.1

155.11

121..V1(11 1'

%,2'')(>.')'

129.8'218.2210.117(i.5216.4211.0

nil.2287..1

1986

(kl.

125..1

114.0112,7124.7141..11.18.711.1..1

129.9

79.677.8

151.0

121.5'

mi.r96.2'90.9'

110.1'218.8211.5179.0216.7201.9

1 10 'i290.7

Nov.

126.0

1.14,5111,1125,6141.1119.2114..

1.10..1

19.7'18.8'

156.0

121.8'101.2'96. V91.

110.4'219.2212.SH7.8216.8200.9

.110.8290.7

Ik-t .

126.7

1.15.01.1.1.7127.2142.21.19.7115.2

1.11.1

80,078,')

155.0

121.9'101.2'96.4'VI .1 '

110.6'220.4212.8178.1217.5211.8

Vl 1.1290.4

l ™ .

126.5

114.V1.1.1.6126.8142.8119.1115.2

1.11.1

79.9'78.8

150.0

122.4'101.5'96..1'VI. 1'

m.r221 V214,2'178.7219.0'196.8

111.291.8'

l-eb.'

127.2

1.16.1115.0127.5144.91.19.7115.1

112.0

80.178,7

145,0

122.7101.696.491.4

111.522.1.8216.0179.6222.420ft] .1

114.4292.1

1987

Mai.'

127.3

116.21.15.1127.6145.0140.1115.1

1.12.2

80.278.6

160.0

122.9101.796.591.4

111.8224.5216.8179.122.1.{)207.9

.115.9292.1

Apr.'

127.2

115.6114.4126.6144.7140.0115.6

1.12.0

79.978.8

158.0

121.2101.796.691.5

112.2225.1217.5178.8217.0208.1

137.7295.0

May

127.S

116.5115.2127.4145.6140.7116.0

1.12.7

80.279.0

149.0

12.1.4101.796.691.6

112,4225.8218.4179.4224.1206.7

H8.7296..1

1. A majoiutilization rate

evision ol the industrial productireleased in July l'JK.S. Se

d i bl" A Revy

Industrial Production" and accompanying tables that co(ll)77 100) through December 1984 in the l ; i ni RAI R I S I R 1

(July 1(J8.M, pp. 487 501. The icvised indexes for January ' .nigh Ju

the capacitythe Index of

.ed indexesI I N . vol. 71

shown in ihe September Hi2. Ratios of imlcu-s of production to indexes of capacity. Hased

I'ederal Reserve, McCiraw-merce, and othi

Economics He part merit. Depart nHI data

I. I rule of do idential.nonresidential and heavy engineering, from McCiraw-ll i l l Information SystemsCompany, I-', W. Dodê Division.

4. Rased on dala in f-'mphyment and luimin^s lU.S. Department oi Labor).Series covers employees only, excluding personnel m the Armed Forces.

1VU. / ZVi). I ll)\)A lv)l.K lv)l.S IVl.S .W.I) 11M)..S

5. Based on data in Survey of Current iiit.sincw (U.S. Department of Com-merce).

f). Based on Bureau ot Census dala published in Survey of Current liusiness.7. Data without seasonal adjustment, as published in Monthly I.uhor Review.

Seasonally adjusted data lor changes in the price indexes may be obtained fromthe llureau of Labor Statistics, U.S. Department o\ Labor.

No i t . . liasic data (not index numbers) for series mentioned in notes 4, 5,and (i,and indexes for series mentioned in notes } and 7 may also be found in the Surveyft/ Current liu.\ine.\.\,

Figures for industrial production for the last two months are preliminary andestimated, respectively.

Selected Measures A45

2.11 LABOR FORCF., FMPl.OYMKNT, AND UNEMPL.OYMKNTThousands of persons; monthly data arc seasonally adjusted. Exceptions noted.

CalegotA

Housi 1101 n Souvi v DAI \

1 Noniiistitutionill population1

2 Labor I'orcc (inclueiing Armed Forces!1

3 Civ i l ian labor lorecIjnploxmen!

4 Nonagricilltural induslricv5 Agriculture

/ •iwmploytncn!6 Number7 Rate (percent o f c iv i l ian lahor forcel . .8 Not in lahor force

Hsi AHI ISIIMI N 1 Sl 'KVI V D, \ l , \

9 Noiiaî'icuKural payroll employment'

1(1 Manuractiiring! 1 Mining

13 1 ransportation and public uhlilies14 Trade15 FinanceId Service17 Government

1984

178,602

115.761M), .M4

101.685.1.321

8.5197.5

62.819

94,496

I9,?78966

\ I 5 9

22.1005,689

20.79716.02!

1985'

1X0,440

117.695115.461

IO1.')7I.5.179

S..M27.2

W.74S

97,519

l').2(i(l927

4 67 S

23.07!s.y.ss

22.00016.394

I9H6'

1«2,S22

PI) 078117,834

106,4343.163

8.2377 (1

62.744

99,610

18.994781

5! 24423.580

6.29721.09916.710

Oct. '

183,450

120.6781 18.414

107,0101.IA2

8,2226.9

62,772

100,209

18.934735

^251

21,7116 39 S

23,36916,872

1986

Ncn . '

18.1,628

120,940118,1.75

107.217.1.215

8.2436.9

62.688

100,415

18.95473(1

V278

23.7176.418

23.45216.900

Dec '

IS.I.MS

120.854118.586

107 4761,161

7,9496.7

62.961

1110,567

18,9707n4

5J86

6^45121 54416.924

Jan.

1S4.092

121,299119,034

107 8663.145

8.0236 7

62.793

100,919'

18.956'718'

5!304'23,821'

6.480'23.67016,936'

l e b . '

184.259

121,610119,149

108.1463.236

7 9676.7

62.649

101,150

18,986719

5 0185 J I 5

2 1.8976.501

2i,75'J16.935

1987

M a i . '

184,4.16

121,4791 19,222

108,0843.284

7.8546 6

62.957

101..129

18,995722

5,0325.331

23,9026.526

23.84216.977

Apr . '

184,597

121.588II9.13S

108,S453,290

7.5006.3

63,(X)9

101,609

19,011710

534523.9826.560

23.92617,039

Ma)

184,777

122,217119.993

109,1123,315

7.5466.1

62,540

101,7.12

19.016735

5.344

24,(KI66 577

24,02217,036

1. P e r s o n s 16 y o u r s of aj;c a m i o v e r . M o n t h l y t i g u i e s , w h i c h a r c h a s c d o ns a m p l e d a t a , r e l a t e 10 t h e c a l e n d a r w e e k t h a i c o n t a i n s t he 12th d a y ; a n n u a l d a i a;irc a v e r a g e s o f m o n t h l y t i g u r e s . By d e l i n i l i o n , s e a s o n a l l y d o e s no t e x i s t inp o p u l a t i o n f i gu re s . B a s e d on d a t a f rom Ijfiplovmcnt and iUirnin^s ( U . S . D e p a r t -m e n t o\' L a h o r ) .

2. Includes self-employed, unpaid family, ami domesiic service workers.

.V Data include all full- and part-lime employreceived pay for, the pay period that includes thexclude proprietors, êlf-employed persons, donworkers, aiul members of the Armed l-'orces. Databenchmark and only seasonally adjusted data are adata from Lmploymeni and i.anunii* (U.S. Depar

.'orked during, or12th day of the month, andtic servants, unpaid family.•adjusted to the March 1987

variable at this lime. Based onmerit of Labor),

A46 Domestic Nonfinancial Statistics LI August 1987

2.12 OUTPUT. CAPACITY, AND CAPACITY UTILIZATION

Seasonally adjiislixl

Scries

1 Total industi'}

2 Mining.1 Utilities

4 Manufacturing

5 I ' lmiary processing6 Advanced processing

7 Malcrials

S Durable goods9 Metal materials

10 Nondurable goods11 Tex t i le , paper, ami ehemieal12 I'aper1.1 Chemical

14 Hncrgv malei ials

Is To(al industrj

16 Min ing17 Uti l i t ies

IS Manufacturing

19 I'riiiKirv processing.20 Advanced processing . .

21 Materials

22 Durable goods21 Metal materials . . .

24 Nondurable goods .

2s Texti le, paper, andchemical

26 I'aper27 Chemical

2S l.nergv materials

1'revioi

High

scvele1

1986

O2 0< 04

1987

or

Output (1977 11X11

124.4

99 91(18 9

128.4

M lI.1S.9

113.3

I IS.87.1.1

116.9117.011(1.1

in.4100,6

125.0

96,6108,8

129.4

112 1119.7

113.4

118.871.1

119.712(1.41.15.1117.7

98.6

1 .ilesl cyc le '

High Low

88.6

92.S9S.6

87.7

91.')86.0

92,0

91 X99,2

91,1

92.89S.492, 5

94.d

72.1

87.8S2.9

69.9

6S.171.1

7(1.5

64 467,1

66,7

64. S70,664,4

86.9

86.9

9^.2S«.s

86.5

89.185.1

H9.I

89 891.d

88.1

89,497,187,9

94 (I

69.5

76.978.0

6N.0

(is. 169.5

68.4

60 945.7

7(1.6

68.679.961.1

S2.2

126.0

96.6110,4

130.4

114.014(1.4

114.3

12(1.175.7

121.1122.4116.0120,1

98.2

1986

May-

127,0

96.6109.5

131.8

115.1141,8

115,1

121.275.5

122.8124.21.16.4122.5

97.8

1986

(.'2 04

1987

01

Capac ly (percent of 1977 output)

157.1

1.12,1l l ( i ,9

161.4

114.(1177.9

144.7

160.7114.5119.5US.81.18.1144.1

121.3

157.9

111.9137.5

162.4

1.14.6179.1

145.3

161. S

1VVJ119.2US.9144.7

121.4

1986

Sepl. Oct.

Capacity uh l i / a l

79.1

ys.s

79,1

79.4

82,97S.II

78.1

71 76V2

83. s

84.291.180.2

82.9

79.0

72 978.7

79.6

S.I,777,6

78.1

71.564.S

86.1

S7.496.182.6

SO.7

79.0

7 1 579.1

79.6

8.1. S77.8

77.8

7,1,665.2

85.8

87.095.782.5

79.7

Nov.

158.8'

111.7118.1

163.4

115.1ISO.4

145.8

162,2113.4140.4119.61.19.7145,0

121.6

Dec

159.6

131.3138.7

164.4

135 9'1817

146.3

16.1,0112.7141.0140,4140.S145.6

121,6

on late (peieenl)

79.4

73,980.5

79.8

84.477.7

78.4

74,268,4

85,7

86.796.081.7

81.2

79.6

73,S79,5

80.11

85.077.9

78.9

74.366,5

87,7

89,2100.284.3

81.2

79.4

71.979, 1

79.9'

84. X'77.8

78.8

74.065,9

87.5

89.198.384.9

S I . 3

1986

0 2 <J3

1987

01 '

l i t h/alion rale (percent)

79.2

7.V679. .

79.5

82.978.0

78.3

73,96V681.S84.194.280,0

82.')

, , ,

79.7

71.179,0

8(1.3

84.778.1

78.7

74,667, 1

86,8

88.197,181,7

80.3

79.1

71.279.1

79.7

S.1,178,0

78.1

71.664.285.686,597.381.4

81.2

79.3

71.479,9

79.8

84. : i '

77.8

78.474.(166.786.487.697.382.8

80,7

79.6

73.678.9

80.2

84.778.1

78.7

74.467.087.188.596.9S4.2

80. s

1987

" . . . Apr. '

79.6

73,578,7

80.2

84 778.1

78.6

74..s68.0

86,8

88.195.484.0

79.7

79.4

71.779.4

79.9

85 077.7

78.8

74.468.,1

87.6

88.995.185.6

80,5

MaS

79.6

73.78(1.4

80.2

85.577,9

79.0

74,568.7

87.8

89.1

81,0

Month ly high 1971; moMonth ly highs 1978 thr

il l i ly low 1975.High 1980; monthly lows 1982

N o i l . These tlala also appear in the Board's ( i j (4()2> rc lcinside I'm Ml cover.


2.13 INDUSTRIAI. PRODUCTION Indexes and Gross Value AMonthly data are seasonally adjusted

Cirouping

1977

por-tion

1986avg.

May June July Aug. Sept Oct. Nov. Dec. Jan. Feb.' Mar. Apr.'' May

Index (1977 KM)

MAJOR M A R K I I

1 Total index

2 Products3 Final products4 Consumer goods5 Equipment

6 Intermediate products7 Materials

Consumer Hoods8 Durable consumer goods9 Automot ive products

10 Autos and trucks11 Autos, consumer12 t r ucks , consumer13 Au to parts and all ied goods. .14 Home goods15 Appl iances, A/C and T V16 Appliances and T V17 Carpeting and furni ture18 Miscellaneous home goods

19 Nondurable consume]- goods20 Consumer staples21 Consumer foods ami tobacco . .22 Nonfood staples23 Consumer chemical products24 Consumer paper products . , .25 Consumer energy26 Consumer fuel27 Res ident ia l uti l i t ies

2X Business and defense equipment29 Business equipment30 Construct ion, min ing, and farm . ..11 Manufactur ing32 Power33 Commercia l34 Transit35 Defense and space equipment

[36 Construct ion supplies37 Business supplies38 General business supplies39 Commercia l energy products

Mtitfiiuls40 Durable goods materials41 Durable consumer parts42 liquipment parts43 Durable materials n.e.c44 Basic metal materials

45 Nondurable goods materials46 Textile, paper, and chemical

materials47 Textile materials48 Pulp and paper materials49 Chemical materials50 Miscellaneous nondurable materials .

51 Hnergy materials52 Primary energy53 Converted fuel materials

HID.Ill)

57 7244.7725 5219.25

12 9442.28

6.892.981 791.16

631 193,91I 24I 19

961.71

18.6315.297.807.492.751.882.861.441.42

18.0114.342.083.271.275 222.493.67

20.504.925.949.644.64

10.09

7.531.521.554.462.57

11 697.574.12

125.0

133.2132.1124.4142.7

136.4113.9

116.2115.1112.997.3

141.8118.4117.1139.5141.6125.8

96.0

127.597.0

134.1131.9136.5161.2147.4105.792.8

147.1138.659.8

I 12.081.6

214.6109.2180.3

124.7

119.798.5

153.9109.480.0

118.3

118.9110 6132.1117.1116.5

99 9105.589.6

124.2

132.4131.6

124.3141.2

135,1113.0

113.8113.2110.394.8

139.1117.4114.3133.9135.812.3.395.0

128.1135.0132.4137.7162,4148.6106.896.4

117.5

146.0137.960.911.982.9

212.907.378.0

21.545.048.330.7

18.496.452.308.878.9

16.5

16.908.428.615.715.3

00.506.789.2

124.2

132.4131.1

124.4140.0

137.0113.1

114.3113.71 P 299 3

136.1116.1114.8137.5139.1122.594.1

128.1135.1133.3137.0163.6147.1104.891.8

118.1

145.1136.661.9

II 1.783.5

208.2108.8178.4

124.1147.9151.6131.9

117.896.3

151.8107.976.7

117.7

118.2109.5132.711!, 1116.4

100.8106.590.4

124.9

133.2132.0

125.2141.0

137.3113.6

116 3116.4114.595.3

150.3119.1116.3138.9141.6126.694.1

128.4135.3132.2138.5166.4146.4106.691.2

122.3

146.4137.960.6

112.681.7

214.5103.9179.5

124.0148.6153.3128.3

118.896.7

154.3108.277.4

118.9

119.0III.2135.6115.9118.3

99.9104.890.9

125.1

133.8132.6

125.1142.5

137.8113.2

115.7114.5110.487 8

152.4120.7116.7139.4142.5125.895.1

128.6135.5133.2137.9163.4147.7107.194.9

119.6

147.8139.358.3

113.381.7

217.5106.9181.0

125.4148.4152.5130.6

118.895.2

155.6108.176.9

119.7

120.511.3.41.36.0117.5117.2

97.9103.787.3

124.9

133.3132.2

124.2142.8

137.0113.5

IP.41P.0116.896.2

155.1IP.3IP.7141.2143.5126.296.0

126.7133.6

mo136.3161,1145,7106,392.0

120 9

148.0139.358.1

113.080.3

215.1113.3182.0

125.9146.4151.2125.8

118.995.3

154.8108.878.4

120.6

121.8116.0133.7119.7117.1

98.0103.887.4

125. i

134.0132.7

124.7143.3

138.7113.3

116.3112.7107.791.9

137.1120.1119.0142.6144.3128.896.5

127.8134.4131.6137.2161.7150.3105.290.8

119.8

148.4139.158.0

112.780.5

215.4111.8184.6

126.3149.3154.1128.8

119.297.0

153,5109,478.8

120.3

121.3114.31.33.5119.5117.5

96.9102.786.2

126.0

134.5133 1

125,6143,1

139,2114,3

1184114 6107 692,3

136.0125.2121 2148.1150 0131 196.3

128 3135013261374161 0151 5105 591 7

119 6

148.1138.656.6

109.679 5

217 3110 71849

126.81497153.7132.4

120.498.0

154.5110.782.1

120.2

121.0115.6134.2118.5117.6

98.7104.887.6

126.7

135.0133.7

127.2142.2

139.7115.2

121.5117.7115.699.5

145.6120.8124.4153.2155.1132.099.4

129.4136.01.33.9138.2163.1150.1106.492.2

120.8

147.01.37.158.2

108.880.2

21.3.7108.9185.8

127.9149.8154.3130.3

120.798.S

154.2111.280.3

123,2

124 7116.1140.2122.3118.5

98,8105.187.3

126.5

134.9133.6

126.8142.8

139.1115.2

120.0117.6117.994.3

161.9117.1121.9146.9148.9129.199.8

129.2135.9132.9139.1)165.9149,4106.395.0

117,8

147,7138.157,2

Ml).79.6

215.9109.5185.2

128.3148.3153.3126.8

120.599.0

154.0110.879.2

123.2

125.0116.5137.9123.4118.0

98.9104.189.4

127.2

136.1135.0

127.5144.9

139.7115.1

122.4123.5125.2105.3162.1121.0121.6145.2146.7130.899.3

129.41.35.9134.0137.9164.7147.8105.792.5

119.2

150.1140.856.8

111 *•HL2

218.4117.4186.5

128.4149.4154.1128.8

121.5100.0155.6111.580.3

122.5

123.6115.8136.7121,8119,0

97.6102.688.5

127.3

136.2135.1

127.6145.0

140.1115.1

121.6121.1121.6100.9159.9120.3122.0144.0144,9132.6100.2

129.8136.4134.3138.6167.3146.7105.894.1

117.7

150.0140.657.6

111.281.4

219.4114.0186.6

128.5150.0154.6130.4

121.698.8

155.8112..380.9

122.7

124.0117.6134.7122.4119.0

96.9101.588.5

127.2

135.6134.4

126.6144.7

140.0115.6

118.4115.5111.591.8

121.4120.6138.9140.5134.599.7

129.6136.3134.1138.6167.0147.1105 793.5

149.8140.458.2

111.981.0

220.2110.0186.5

127 9150.3154.5132.3

121.596.4

156.311.3.081.5

124.1

125.3119.0134.9124.2

97.8102.090.0

127.8

136.5

127.4145.6

140.71 16.0

1 19.4116.7113.191.0

122.0121.5141.1

1.30.3137.0

150 6141.2

112.381.0

221.5110 3187,4

121.896.1

156 811.3.4

124.7

126.0

A48 Domestic Nonfinancial Statistics I I August 1987

2.13 INDUSTRIAL PRODUCTION Indexes and Cross Value—Continued

Ciioupiiij;

MAIOH INDUS] in

1 Mininy inul utilities2 Mining3 Utilities4 Manufacluriii};5 Nondurable(» Dunihlc

Minim;7 MetalK Coall> Oil ;uul gas extraction

10 Stone and ciirth minerals

Nondurable manujaclitres|] foods12 Tobacco product-,13 Textile mill products14 Apparel productsh I'a per and pioducls

16 Printing and publishing17 Chemicals ami products15 Petroleum products19 Rubber and plastic products . . . .20 I .catlier and products

Ihirnhlf mttnuj'tu lure,2\ Lumber and products22 l u in i l u r c and fixtures21 Cla>, jOass, stone products

24 Primary metals2> Iron and steel26 labi icat i /d melal pioducls27 Nonelectrical machmerv2K I'.leclr ical machinery

2M 1 rauspoi lalion equipment30 Motor vehicles and piuls31 Aerospace and miscellaneous

harisportation equipment.32 Inslriiments33 Miscellaneous inainifacliues . . . .

Utilititw34 HIeelric

MAJOH M A K K I I

35 Products, lotal

36 Final37 Consumer goods3K }',L|iiipment3l) In lennedia le

SICcode

10

1114

2.021222 t2d

2728291011

242.S12

11

1.11.214.15Id

VI171

172-6.91819

19

1"

tic

IS

s84IS

49

1

21

•I

X22

12

s.1(9

95

.1

1

4

"1i.

i

n

.79

.81

.96

.21I 1

.10

SO60(),'66

9d622979IS

54OS40

so51

1(127/2

114946s415

1125

X76646

17

19X6IISj;.

101,499,6

109,(1129,11111,9127 9

124 294.7

1119

1 lid96.6

111,2101 d116,4

161.41 H O92.1

l s l . 161.1

121.4146.7120.2

75.8d l 4

107.4141.9Idd.S

125.81 10.9

l.ld.l141.199.1

I IU ILX (1977 KKII

101.199 8

MIX 512X2129.9127.0

72.0124.09S. I

112.1

1.11,7101 dI I IIlO.'.fi111,2

l i l . sVs . 7

ISO IS9.S

120 2

74. X(ill.2

106.S141.1Kid.O

124.1

MS. (I140.1101.0

5 1 7 . S

•I0S.7

I 11.0II I .1)

1,7(12.2

I..114..SXS.l.X4SX.2W7.(i

I.6S7.6

K.S2.4448.7lXd.4

102. d9X.9

IDX.d

126.2

(|S.9127.191.1

114.d97.6

I l2.d101.7117.2

164.0I 14.29I.«

152.2>7.9

120.9147.1120.8

71.4SX.l

106.6140.4Id!.2

121.1I 10.6

144.7I 19.99X.1

121.1

101.X97.1

109.7129.21.11.7127.4

d9.2120.292.4

114.197.V

II 1.4102.S118.1

16S.4I I.I.I90.6

IVS.Sd l . V

120.8149.S1 19.6

71.661.7

105.7142.6I (id. 8

I2S.6

I4S.2141.797. s

I2.S.4

100.996,4

lOX.i

70,9122.290,7

114.8

I 0 2 . SI IX.d

H4.-194,0

ISS.S6 2 , 0

122.sI4X.1

7.1.460.8

I2S I108,2

148,0142,098.1

1,676.7

I.289.S84.1.8445 71X7.2

1,669.9

1,282.7H42.4440.41X7.1

1 . 6 X I . . 1

1,292.6S46.944.1.71X8.7

100,896,2

I0X..1

111,412X.I

70,7120.X91,0

1117

114.189.8

I Ki.O102.7l id ,9

I (i 1,0111,991.1

|s.| 9S9.4

125.0147,712 I d

74.161.1

107,1140.9166.9

127.7

148.7141.797.7

00.79S.d09. 3

.12.328.1

(iX.s17.6911.5Id.4

.1.1.70(1.1Id.l04.217,8

67.X11.991,157.66(1,2

25.949,218.1

74 262.20 X 142 2d7,7

25.207,1

49,740,199,0

2.1.X

IO2.d97.4

III.2

1.12.712X.d

dX. l1.10.190.4

115.2

114.49d.8

1 17.8105.11.19.5

IdX.S112.192.0

159.061.1

129.5I4X.6120.6

76.X64.X

107.1141.2168.1

125.6107.9

149.6141.198.9

I2\l

101.996.7

1 10. d

11.1.7129 2

71.S124.190.9

109.d

115.192.9

MX.4

I4l.(i

I(i7,7114.d92.5

160,759.4

m . i150.5121.7

71.560. s

108 f119.9170.2

127.0111.2

148.4142.4101.1

12.!. s

101.997.2

109 S

111.1114.1129.0

72.1l l i . sX9.9

107.1

l l s . 1X9.I

1 18.0107.2119.8

168.1117.494.7

15X.IS8.1

1.10.2148.7122.8

71.6Ml. 2

108.0140.1l()9.2

128.11 12.2

149.6142.S101.X

121.7

101..1% 2

109.61.12,01.14,1110,4

72.0127.789. S

110,0

1(5,798.7

118 4107 4140 5

I6(.71 17 791.9

IS9 259.6

110.0151.8121.s

76..1W.I

108 2142.1169.1

111.81 17.X

150.7141.1101.1

122.1

101. 196.4

109.1

1 12.21.14.61.10.5

71.6121.X91.0

I I 1.2

l id . 1100.71 IX.X106.7119,2

167.9I1X.291.4

160.259.1

129.615.1.X122.6

77.565.1

108.614.1.7167.7

1 U).d115.5

151.1142.2102.2

12.1.1

101.796.5

I 10.41.12.01 15.1129.8

1 12.4

1.15.9

120.5

I.1X.4

I (.9.2I 19.092 d

162.2SV.l

1.10.6155.7121.5

76.865.1

108.6

I2d.9109.1

150.7141.1101.5

of 1982 dol lars, ininusil

1.677.S

1.292..1X.19.8452.5.185.5

1,68.1.9

1,292.5X.19..1451 2.191,4

1.690.X

] ,29 / .d847.2450 4191.2

1,701.9

I..UKi.7860.1446.2195.1

1,707.1

I..115.1X(>5.5449.6.191.9

I , 7 2 1 . 4

I..1.11.9869.7462.2.1X9.5

1,723.6

1 ,.110.2870.1460.0.191.4

1,712.2

1,117.6861.1456.5194.fi

102.296 1

I I 1.91.12.71.15.91.10.4

145. .1

127.7I 10.2

151.414.1.0

1,721.4

1322.686.1.0459.619X.X

• A iiKijt i! revision o! Uic uu l l is l i ia l p ro t loc l iun iiulc\ ami (lie capacityi io l i / .a l iun iau:s \sas te lcasfd in July 19X5. Sec "A Revision nf (he Index oi'In t lns lna l I ' roJucl io i !1" ami accoi i ipanyi t lg tables that contain revised indexes(1977 1001 t lnonc l i Deeeinlier 1984 in Hie I - ' I - I I I .KAI R I SI K V I H I , I I I U N . vo l . 71

(.Inly 1%5|, pp. 4X7-501. The revised index,shown in the Sepletnliei l l tn I I I IN.

N o i l . lhese data also appeal in the Hoard's ( i . 12.see inside fiont cover.

January through June 198^ were

lease, For address,


2.14 HOUSING AND CONSTRUCTIONMonthly figures arc at seasonally adjusted annual rates except as noted.

July Aug. Sepl. Oct. Nov. Dec Jan. Feb.' M; Apr.

Private residential real estate activity (thousands of units)

Nfw U N I I S

1 Permits authorized2 1 -family3 2-or-more-family

4 Started5 I-family6 2-or-more-family

7 Under construction, end of period1

8 I-family9 2-or-more-family

10 Completed11 l-family12 2-or-more-famiiy

13 Mobile homes shipped

Merchant builder activity in l-family unt14 Number sold15 Number for sale, end ot period'

I'liic (thousands of dollars)2

Median16 Units sold

Average17 Units sold

KXISTINC; U N I I S (l-family)

18 Number sold

1'rice of units sold (thousands of dollars19 Median '20 Average

CONSIRUCI ION

Total put in place

1,682922759

1,7491,084

665

1,051556494

1,6521,025

627

639358

80.0

97.5

2,868

72.385,9

1,733957777

1.7421.072

669

1,063539524

1,7031.072

631

688350

84.3

101.0

3,217

7S 490.6

1,7501,071

679

1,8051.179

626

1,074583490

1,7561,120

637

748361

80.398.3

1,7781,098

68(1

1,7861,147

639

1,154620534

1,7501,074

676

691350

94.1

116.8

79.999.2

1,7281,059

669

1,8001,180

620

1,163628534

1.7571,124

633

91.5

113.2

3,590

82.0KM). 3

1,6871,071

616

1,6891,123

566

1,154627527

1,7401,113

627

243

744355

95.0

114.0

3.710

80.398.2

1,6641,036

628

1,6571,114

543

1,142625518

1,7451,165

580

675357

96.4

114.9

3,760

79.497.3

1,6671,028

639

1,6371,129

508

1,125619506

1,7741,158

616

237

691353

94.0

113.6

3,850

80.499.1

1,8621,184

678

1,8131,233

580

1,104610494

1,8941,184

710

251

768357

95.0'

118.9'

4,060

80.8100.6

1,6521,085

567

1,8161,253

563

1,089609480

1 9561,217

739

242

712'358'

98.5'

122.1'

3,470

82.4100.3

1,6761,204

472

1,8381,303

535

1.096621476

1,7261.107

619

742358

95.0

120.3

3,690

85.0104.3

1,7191,150

569

1,7301,211

519

1,085617469

1,6961,145

551

722357

99.0

121.2

85.6104.7

Value of new construction1 (millions of dollars)

PrivateResidentialNonresidential, total

BuildingsIndustrialCommercialOther

Public utilities and other

PublicMilitaryHighwayConservation and development .Other

271,973155,148116,825

13,74648,10012,54742.432

55,2322,839

16.3434,654

11,396

292,792158,818133,974

15,76959,62612,61945,960

62,7773.283

19,9984,952

34,544

306,697175,597131,100

13,65352,08413,43351,930

71,2043,8931I.2604,728

41,323

178,821130,182

12,86658,1321.3,27745,907

71,7193,553

21,6034.415

42,148

178,761131,394

12,54360,05413,31545,482

72,4484,13221,6074,294

42,415

.188,471

315,267178,480130,137

13,18058,00114.Ml44,955

73,9645,050

20,5524,841

43.521

.18.1,142

186,962128,305

12,94856,22014,32444,813

73,2043,540

20,4804,754

44,430

311,668185,716125,952

11,53254,8841.1,93743,599

71,4743,98018,4254,516

44,553

305,489181,514123,975

12,58254,41913,88043,094

73,0394,29518,9895,038

44.717

.181,084

307,199185,373121.826

12.15551,90814,10043,663

73,8854,02522,8955,10041,865

386,7')7

311,325184,915126,410

12.72355,36314,63343,691

75,4723,61621,8984,75945,199

306,011184,659121,352

11.10153,39014,97541.886

76,4014,15621,8814,83345,531

1,5981,058540

1,665

1,222443

1.075624450

1,8211.142679

777355

99.0

118.8

3,560

85.0105.0

307.911184,192123,719

11,17154,36214,89843,288

76,2303,888

21,0875,297

45,958

1. Not at annual rates,2. Not seasonally adjusted.3. Va of tn ct ly

comparable with data in prior periods because of changes by (he Bureau of theCensus in its estimating techniques. For a description of these changes seeConstruction Reports (C:-3O-76--5), issued by the Bureau in July 1976.

Norr . Census Bureau estimates for all series except (a) mobile homes, whichare private, domestic shipments as reported by the Manufactured HousingInstitute and seasonally adjusted by (he Census Bureau, and (b) sales and prices ofexisting units, which are published by the National Association of Realtors. Allback and current figures are available from originating agency. Permit authoriza-tions are those reported to the Census Bureau from l6,(KK)jurisdictiuns beginningwith 197K.

A50 Domestic Nonfinancial Statistics ( 1 August 1987

2.15 C'ONSUMKR AND I'ROIHJCKR PRICKSPercen tage changes based on seasonal ly iitljlisted da ta , except as noted

Item

C O N S I : M I k 1'itiri s'

1 All items

4 All items less food ami energy5 (ommodil ies6 Sei vices

1'kOIHK 1 k 1'lUC 1 S

7 Finished goods8 Consumer foods9 ( onsumei energy1) Other consumer goods1 ( apital equipment

12 llUeimedlate materials1

11 Including energy

Crude materials14 hoods15 Hneigy16 Other

Change from 12mouths earlier

I9K6May

1.6

14.84.(11.(15.8

I.K

28.42.4I.K

•1.1.<!

2.725 0

1.2

19«7May

4.')

4.2

4.7

2.64.1

2.72.0

1.82.1

9.16.4

Change from .1 mouths earlier(at anni al rate)

June

1.6

12.61.1.1

4,9

,7K.2

20.7

2'4

S.II 2

5.9

l »

Sept.

2.0

S.421.0.1.72.64.1

411.242.7

2.12.0

1,5

IKI'l.fi24.1

Dec.

2.5

4.1

\A5.1

1.81.0

12.54.41.4

1.21.2

2.75

8.5

1987

Mar.

(..2

2.5

5.25.15,1

6.757.6

1.4.1

8.0I.!

11.141.216.1

Change from 1 month earlier

Jan.

.7

.4.1.0

,5.6.5

.41.87.7'

.5'

1.(1.4

1.1'8.4'4.5'

1987

heb.

.4

.11.9..1.0.4

43'

.5

..1'1.4'.V

Mar.

.4

.11.0

.s

.7

.4

.4S

.8

.1

A,1

.4

.9

.')

Apr.

.4

.1,1.5.6.4

1.52.1

.1

4.11.7.7

May

..1

s

,2

3

1.4.0

.1

.4

.4

4.82.72.4

IndexlevelMay1987

(1967100)1

.3JH.7

112.5.166.9.1.18.9270.7413.2

296.3286.7516.5264.4111.9

118.1310.5

251.3606.9261.1

1. Not seasonally adiusted.2. Figures for consume, prices are lliusc for all nit

cntal equivalence measure o\' homeowner-ship afterliners and reflect i

.*. 1-xcludcsannual (Vwls.

SOUR( t.. Hn

:dinte materials for food manufacturing and manufactured

Labor Statistics.


2.16 GROSS NATIONAL PRODUCT AND INCOMEBillions ol current dollars except as noted; qiKiilerly dala are at seasonally adjusted annual rates.

Account

CJKOSS N A I I O N A I . PRODUCI

1 Total

tiy source2 Personal consumption expenditures3 Durable goods4 Nondurable goodsS Services

d ( iross private domestic investment7 Fixed investment8 Nonresidential9 Structures

10 Producers' durable equipment11 Residential structures

13 Nonfarm

14 Net exports of goods and services15 Kxports

IS Federal

llv major type oj product20 Final sales, toial

22 Durable23 Nondurable24 Services25 Struclures

26 Change in business inventories27 Durable goods28 Nondurable goods

29 M E M O :Total GNP in 1982 dollars

NAIIONAI INCOMI:

30 Total

31 Compensation of employees

33 Government and government enterprises34 Other35 Supplement to wages and salaries36 Employer contributions for social insurance37 Olher labor income

38 Proprietors' income1

39 Business and professional1

41 Rental income of persons^

42 Corporate profits'43 Profits before tax '44 Inventory valuation adjustment45 Capital consumption adjustment

46 Net interest

3,765.0

2,428.2331.2870.1

1 " 7 0

662.1598.0416.5139.3277.3181.4

64.156.6

5K.7382.7441 4

733.4311.3422 2

3,700.91 576 7

675.0901.7

1,813.1375.1

64.139.224.9

.3,489.9

3,0.32.0

2.214.71 837 0

346.21 490 6

377.7193.1184.5

236.9205.3

31 s

8.3

264.7235.7- 5 . 534.5

307.4

.1,998.1

2.600.5359.3905.1

1 336 1

661.1650.0458.2154.8303.4191.8

1 I.I

78.9369.8448 6

815.4354.1461 3

3,987.(11 630 2

700.2930.0

1,959.8408.1

II.16.64.5

.3,585.2

.3,222.3

1 368 ""1 965 8

372.21 593 9

402.4205.5l%.9

254.4225.2

29 2

7.6

280.7223 2

- . 658.1

311.4

4.2(16,1

2.762.5388.1932.7

1.441,7

683.6677.0460.0143.!316.7217.0

6 77.7

104..3373 0477.3

864.2366.2498.0

4.199.41.670.5

716.8953.7

2.105.6430.0

6.71.07.7

3,674.9

3,386.4

2 498 02,073.5

395.71,677.8

424.5215.7208.8

278 8252.7

26.1

15.0

299.7237.5

6.556.6

294.0

1986

01

4,149.2

2,697.9160.8929.7

1,407.4

708.3664.4459.2154.6304.6205.3

43.841.2

93.7374.8468.5

836.7.155.7480.9

4,105.41,669.0

710.6958 4

2,057.7422.6

43.828.615..1

3,655.9

3,340,7

2 461 52,044.1

387.21,656.8

417.4212,9204.5

265.3240,9

24.4

12.8

296.4222.5

16.557.3

304.9

Q2

4,175.6

2,732.0373.9928.4

1 429 8

687.3672 8457. S141.5316.0215.3

14.510.5

104.5363.0467 5

860.8367.6491 1

4,161.21 661 6

701,1958,5

2,087.4426.7

14.5.1

14.6

3,661.4

3,376.4

1 480 **2 058 8

392.51 666 3

421.3214.1207.3

289.1249.6

19 5

16..3

293.1227.7

10.654.8

297.7

Q3

4,240.7

2,799.8414.5932.8

1 452 4

675.8680.3459.0139.5.119.5221.3

4.510.3

108.93708479.7

874.0369.3504,7

4,245.21,680.2

730.1950.1

2.125,2435.3

-4 ,5-15.611.1

3,686.4

3,396.1

1 507 42,081.1

398.41,682 7

426.3215.9210.4

277.5258.0

19.6

16.2

302.0240.4

6.155.5

292.9

Q4

4,258.7

2,820.4403.1940.1

1 477 2

663.2690.3464.3137.5326.8226.0

27.110.8

110.2383,5493.7

885.1172.1511.2

4,28.5.81,671.1

723.5947.8

2,152.1435.3

- 27.1- 16.9

-10.2

3,696.1

3,432.3

2 541 82,109 8

404.41,705 4

433.0220.1213.0

283 2262.2

21.0

14.8

311.2259.6-7 .258.8

280.4

1987

Ql '

4,352.1

2,850.4383.(960.3

1 507 (

722.1677.9451.5134,1317.5226.4

44.n

38.(

107,9399.1506.9

887.(164.8522 8

4,307.91 720 f

745.(97 5. (

2,196.7434.9

44.231.412.8

.3,739.4

3,510.9

2 579 (2 143.(

413.11 730 7

435.3220.1215.4

296.1268.2

27.8

15.4

335.4267.6- 6 974.7

28.5.1

1. With invenlory valuation and capital consumplion adjustments.2. With capital consumption adjustment.

3. For after-tax profits, dividends, and the like, see table 1.48.SOUKCK. Survey of Current lliisinew (Department of Commerce).

A52 Domestic Nonlinancial Statistics ['.I August 1987

2.17 lM'RSONAl, INCOMH AND SAVINGBillions of eurrenl dollars; quarterly data arc al seasonally adjusted annual rates. Exceptions noted.

I'l HSONAl lN( OMI AND S\VIN(i

1 Total personal income

2 Wage anil salary disbursements

1 Commodity producing industries4 Manufacturings Dislr ibulive industries6 Service indnstlies7 (iovernment ami government enterprises

X Olher labor income9 Proprietors' income1

10 Husincss anil professional'11 I arm1 ^12 Kenlal income of persons1

I 1 Dividends14 Personal inleresl ineomeI'l Transfer paymentsId Okl age survivors, disability, and health insurance benefits..

17 l.i ss: Personal contributions tor social insurance

IX I'QUAi s: Personal income

19 I.I ss: Personal tax and nontax payments

20 I ' .OUAI s: Disposable personal income

21 l.i ss: Personal outlays

22 IMÎJAI S: Personal saving

Ml-.MO

Pci capita (1982 dollars)21 (iross national product24 Personal consumption expenditures2s Disposable- personal income26 Saving rate tpercent)

(iltnss SAVINI;

27 Cross savins

28 (iross private saving29 Personal saving10 Undistribii led corporate prolits1

II Corporate inventory valualion adjust me nl

(•(;/)//((/ collstwipliotl allow/luces12 Corporate13 Noncorporate

14 (ioverument surplus, or lielieil ( I , national income andproduct accounts

15 federal16 Slate and local

17 Gross investment

IX (iross private doinestieI1) Net foreign

40 Statistical discrepancy

1. With inventory valualion and capital eonsuinplion adjustment2. With eapilal eonsuinption adjustment.

3,110.2

1.836.8577.8439, I44224706.146.2

1X4,S2.16920.1 1

X.I74.7

44(>.9

215.7

IVi.S

1.110.2

419.6

2,67(1.fi

2,SOI.9

168.7

14,721.19,475,4

10,421.06.1

674.XI6K.791.0

251.V161.2

101. S170.06X.5

662.190.7

I.V66.1607.7460.1469.X516.4.172.2

196.9254.4225.2

29.27.6

76.4476.24K7.1251.4

150.2

4X6 5

2.X2XII

2,6X4,7

141.1

14,9X2.09,711.7

10,561.1)5.1

6X7 X

107.1

26X.2169.0

L16..1I9X.061.7

661.1I 15.2

3.4KS.7

2,071,5621 2471.24X7.9566.7195,7

20HX27X.X252.726.115.0XI.2

475.051 l.X266.X

160.1

1.4X5,7

514.1

2,971.6

2.X57.4

114.2

15,216.910,015.3It),771.0

1.8

5JH.7

679,0114.2109.4

6.5

2X0 1175.1

140.120.1.161.1

6X1.6141.9

3,4.12.6

2,044.1622.047(1.54X5.2549.6.1X7.2

204.5265.1240.9

24.412.X79.1

4X0.8504.726.1.2

I5X.6

497.5

2,915.1

2.7X9.4

145.6

15,188.09,857.1

II) 721 05.(1

583.2

708..1I45.fi115.s

16.5

275.1171.8

125.1195.069.9

708.1128.6

Q2

3,483.3

2,O5X.X620.8468.X484.1561.3.192.5

207.32X9.249.

V).16.81.

480.51(1.264.

IS9.5

3.4H1.3

504.8

2,978.5

2,825.5

153.1

15,178,99.9K4.4

539.7

713.015.1.1106.610.6

278.9174.4

173.1212.2

5X.9

6X7.1141.0

3,4')8.8

2,0X1.1621.8470.048X.3572.639X.4

210.4277.5258.0

19.616.282.0

47 1.8S I X . 5

269.6

160.X

1,498,8

SI 9.(1

2,979.9

2.895.8

84.1

15,245.610,124.010 776 0

2,8

517.2

650.5X4.I

I0X.X6.1

281.6176.0

1.13.3197.464.0

675.xI4X.3

3,527.9

2,109.8628.3475.4493.9583.2404.4

213.0283.2262.2

21.(114.882.7

465 2521.8

270.2

162.4

1,527,9

534.9

2,993.0

2.918.8

74.2

15,247.910,089.910,708.0

514.')

644.374.2

106.47.2

2X5 5178.2

129.4188.X59.4

663.2147.7

.1,5X7.'.)

2,141.6633.1477.9500.7596.9413.0

21S.4296.1268.2

27. K15.484.1

470.7530 1

273.7

167.7

1.587.9

531.0

3,(154.9

2.948.4

106.5

15,194.81(1,040.310.762 0

1.5

569.5

689.7106 5115.2

6.9

287.11X0.7

120.3170.450.2

5811.7

722.1141.4

Soum i . .V//MTV of Current Husincw (Dcpnrhiient of Commerce).

Summary Statistics A53

3.10 U.S. INTERNATIONAL TRANSACTIONS SummaryMillions of dollars: quarterly data are seasonally adjusted except as noted.'

1 Balance on current account2 Not seasonally adjusted

3 Merchandise trade balance"4 Merchandise exports5 Merchandise imports6 Mi l i tary transactions, net7 Investment income, net1

8 Other service transactions, net

9 Remittances, pensions, and other transfers10 U.S. government grains (excluding mi l i tary)

11 Change in U.S. government assets, other than off ic ialreserve assets, net (increase, )

13 Gold14 Special drawing rights (SDRs)1.S Reserve posit ion in Internat ional Monetary FundId Foreign currencies

17 Change in U.S. private assets abroad (increase, )'IK Bank-reported claims19 Nonbank-repor led claims20 U.S. purchase o f foreign securit ies, net21 U.S. direct investments abroad, net1

22 Change in foreign off ic ial assets in the United States(increase, I )

23 U.S. Treasury securities24 Other U.S. government obligations25 Other U.S. government l iabi l i t ies4

26 Other U.S. l iabil i t ies reported by U.S. banks27 Other foreign off ic ial assets

28 Change in f o r e i g ^ private assets in the Uni ted Slates(increase. I )

2l) U.S. bank-reported l iabil i t ies30 U.S. nonbank-reporled l iabil i t ies11 Foreign private purchases of U.S. Treasury securit ies, net .32 Foreign purchases of other U.S. securit ies, net13 Foreign direct investments in the United States, net1

14 Al locat ion of SDRs3S Discrepancy36 Owing to seasonal adjustments37 Statistical discrepancy in recorded data before seasonal

adjustment

M l : MOChanges in off icial assets

39 Foreign off ic ial assets in the United States (increase, M . . .40 Change in Organizat ion of Petroleum Export ing Countr ies

off icial assets in the Uni ted States (part of line 22above)

41 Transfers under mi l i tary grant programs (excluded f romlines 4. 6, and 10 above)

1984'

- 107.013

-112.522219,(MO312.422

1.94218,490

1.138

-3,637-8 ,541

-5,476

• 1 130II

979- 9951,156

- 13,68511,1275,(1194,7562.821

2,9874,690

1.1<86<55

2,857

99,481.1.1,8494.704

23.00112.56825,359

026,837

26.837

1110:MOI

4.504

153

198^'

-116..194

122.1482 IS.935.138.083- 1.33825,398

-•1,005

4 079-11.222

-2.831

. ^ ^ ^

0897908

.1,869

24 711-1,3231,3617.481

17,268

1.140-838301823645

-1.469

131.1)1241.045

-45020,433S0,%219.022

017.920

17,920

- 1 858-1^963

-6.709

46

1986'

141.352

144,339224,361368,700

3,66220.844

1.463

3.88511.772

1,920

I P0

2461,500- 942

94.374-59,039

3.986-3.30228,047

34,69834,515

1,2141,723

554880

178,68977.350

- 2 7918,275

70,80225,053

023,947

23,947

11232,915

8,508

101

19H6'

Ql

-3.1,040- 30.090

34.97851.878

-88.856-1,2986,425

UiX

94.1-2,078

240

• • • 1 1 5

0274344185

13,41.56.373

-2,9475,886

-10.955

2.576.1,238-177

406- 1,254

363

.1.1,7468,487

-2,1937.035

18.5711.846

010,4882,294

8.194

• -11 S2,170

1,876

19

- 3 3 , 7 5 534,634

-33,65156,92890,579

1.0544.587

53(1

918.1.249

242

160

104366246

25.30314.734

1.894-1 .149

7.52d

1.5,56814,538

-644925

1,280531

33,4751.899

- 1-5.533.705

22.8884,536

010,2412,044

12.285

1614,643

-2 ,166

11

-36,58340,210

-.17,11556,53493 649

-8155,339

342

875- 3,459

1.454

^800

163508391

23.30418,878

685620

-5 ,731

15,55112,167

-276999

2,963-302

54,04030,360

80609

17,0746,077

0-8 ,530-4 ,153

-4 ,377

^8014,5.52

3,023

19

04

- 37,977-36,398

18,59557,021

-95,616-495

4,492759

1,1512,987

15

13"*0

- 11283120

12,351-.11.800

1703,1113,834

1.0034.572- 117

6072.435- 4 1 0

57,42834,604

1.03.5-3,07412.26912.594

011,750.1,904

7,846

1321,610

5,195

53

1987

QF

37 12233.866

18.31058.212

-96,542198

3.836264

-9932.097

219

1 9560

76606

1,274

16,51727.802

1,3179.968

14.12311.999

511,421.1,964

368

13.43513.836

5,44518,454.1,372

0- 9.128

2,749

11.877

1 956is]s44

-2.941

10

1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 438-41. am

2. Data are on an international accounts (JA> basis. Differs from the Census 5basis data, shown in table 3.11. for reasons of coverage and timing; military privateexports are excluded from merchandise data and are included in line 6. Nor

3. Includes reinvested earnings. (Depart

manly associated with military sales contracts and other transactions.1 with or through foreign official agencies.insists of investments in U.S. corporate stocks and in debt securities ofcorporations and state and local governments.•:. Data are from Bureau of Kconomic Analysis. Survey of Current liu\ines\nient of Commerce).

AM International Statistics I 1 August 1987

3.ii ii.s. I - ' O R I : K ; N T K A D H

Mill ions of dollars; moi i thh dala are noi seasonally adjusted.

1 I XI'ORTS of domestic and lorcignmerchandise excluding gi anl anshipments

2 (d-.NI.RAI. IMI 'ORIS includingmerchandise for immediateconsumption plus cullies into

I I r.iilc IwlaiiiT

SN.04X

57.562

211.1

.10.0IX

-MI.6NK

7,79s

'),.164

27,4d(i

•11,(145

12..107

1.1.647

11,197'

-12,1.14

.11,9X1

II.H42

N o l l . Ihe dala l l l iough 19X1 in this lable arc rcporlcd by the Bureau ol'Census noidala of a Iree-aloiigside ship tl'.a.s.l value basis lhal is, value al Ihe pon ol cone \po i t I kg inn ing in 19X1. toieign Hade ol Ihe l . S . V i igm Islands is included in aceIhe Census basis Irade dala: this atl iuslnienl lias been made lor all data shown in ship puIhe lable. Ik 'ginning wi ld 19X1 dala. the value ol imports aie on a customs mil i laiyvaluation basis. ' Jan 1. I

Ihe Census basis ilala i l l l ler 1'ioni meichaildise trade dala shown in table 1.10. Sol 'Ki1:.S Inlernational T i ansact ions Sum niary . lor reasons ol coveiage and l iming. On I Depart IIthe t'xpnil wi/r, the largest adiustnienls are: I I I the addit ion ol c \po l Is to ( anada

eovered in Census s l a s h e s , and (2) Ihe e\ehis ion ol ai i l i lai y sales (which aieibmed vv ilh othei mil i lai y l iansaelions and lepo i led separalely in the "se i viceo n n t " in lable 1.1(1, line ()). On Ihe imp,at \,</c. additions aie made loi gold.

•liases, ]mpi'avinenls are

of eleeti ieily l i o in ( atiada, anil olhi-1 t i ;ided and > elv ndieale

id o l l l nI' I 'J00 '•Summary or U S . l A p o r l and Impo i l Merehaiuh

' C H h Cy

nt o l 'Commeiee . Hii

1aclu•vc As o l

I r a d e 'ol -he Censi is l .

.1.12 U . S . R K S I ' . K V l ' , A S S i - l S

Millions ol tlollais. end of period

1 I'm

1 S|K

1 Res

s l o i

ll .

Si;

Clal

M<

eiga

1

illl/alion

dlawing I

positionnelari In

ciirrcnciL

vpc

mill1

('.Ills'''

i:,1"1™1".""'."i

I9H I

.1.1,747

11.121

Ml. 's

11,112

(,2X9

1

.14

11

<•

'

M l

',,4

0 %

(.41

M l

(,s,,

1

4.1

11

7

11

12

'Xs

1X6

090

291

947

Xsd

Nov

47.S24

1 1.07(1

K. * 1(1

1 1 .(i.M)

Id.'/Xs

Wi

Dec.

48.517

11 ,(!M

X.l'js

11.710

17.12X

Jan.

4'),.1S6

11,0(i2

X.4711

11 ,X72

17.9X2

l e b .

4')..15X

l l . o x s

X.dls

1 1.699

177JS9

19X7

- -

Mar.

4K.K24

11,(1X1

X,74t)

11,711

17.292

A p i .

46,5') 1

11.07d

X.X79

1 1 ,/•!>

II.X'Jl

M

45

11

X

I,

14

ay''

<)20

(170

904

S24

422

I ( io ld held under carmaik al I eileial Reseive Hanks lor toreinn and mlerna-l i imii l accounts is mil included in the |:old slock nl' Ihe Unilci l Stales: see lablei l l . ( io ld sloek is v,lined al VI2.22 per line Hoy ounce

2. HctiinnincJiily 1974. the | \ i r adopted a technique loi valuing the SDR basedi h d l hvvcichl o l s tor Ihe

gol nienibei countriec g p

Ij-oin July 1974 ihiough December 19X0. Id cuncncies were used: hum January19X1. .-i cuircacies have been used. Ihe U S SDR holdings and reserve positionin Ihe 1M I also are valued on llus basis beginning .Inly 1971.

.1. Includes alloealions by Ihe International Monetary I uiul ol' SDRs as lol lows;SXd7 million on Jan 1. 1970; V/17 million on Jan. 1. 1971; S710 million on Jan I.1972; SI.119 mill ion on Jan. I. 1979- S l . l s : mill ion on Jan. I. 19X0; and S 1.09.1million on Jan. 1, 19X1; plus transactions in SDRs.

4. Valued at currcnl markel evcliance rales

3 . 1 3 I ' O R K I G N O I - ' I ' K ' l A l . A S S 1 T S i [ l - : i . l ) A T I K D K R A I . Rl ' .SI- lRVl- : H A N K S

Millions i l l 'dol lars , end o l ' pe r iod

AssCls

1 Deposits

. \ i i i 7 v /((•/(/ ill i inlnth2 1' ,S. 1 Yea sin v sec in i lies'1 lainnal ked gold

19X1

190

H7.d7O14.414

19X4

2d7

1IX.00014.242

I9SS

4X0

121.00414.24s

I9«d

Nov

224

1 Mi,919

Dec

2X7

14!(I4X

Jan.

22d

IS9.S9714,041

1 cb

ldO.942

I'tK'i

Mar.

2(,X

ldV.42.1

Ap i .

142

172.929I I .0.11

May

119

I/S.X4914.011

1. M;irkctiil'k- U.S. IKMSIIK bills, notes. ;nu

2. lai marked pikl is \alucil ,u \-\1.22 pci li

mls: ami noniiiiii kcUihk- I S N O I I . I-\c link's ik'posils and U.S. I icaami regional organi/alinns. lânnarked ôldtion.tl aceonnls and is noi included in llie t'.

\ seem iljcs lie Id for iiUcmationaôkt held loi foreign and inlenia>lock ol ' lh i ' I'niled Slales.


3.14 FOREIGN BRANCHHS OF U.S. BANKS Balance Sheet Data1

Millions of dollars, end of period

A.Ysel uccoiini

1 Total, all currencies

2 Claims on United Stales} I'arenl bank4 Other banks in United Slates2

.*i Nonbanks-6 Claims on foreigners7 Other branches of parent bank8 Hanks9 Public borrowers

10 Nonbank foreigners

11 Other assets

12 Total payable in U.S. dollars

13 Claims on United Stales14 Parent bankIS Other banks in United Slates-16 Nonbanks2

17 Claims on foreignersIS Other branches of parent bank19 Banks

21 Nonbank foreigners

22 Other assets


24 Claims on United States25 Parent bank26 Other banks in United Stales?27 Nonhanks-28 Claims on foreigners29 Other branches of parent bank30 Hanks31 Public borrowers32 Nonbank foreigners

33 Other assets


35 Claims on United States36 Parent bank37 Other banks in United States^38 Nonbanks-39 Claims on foreigners40 Other branches oT parent bank41 Hanks42 Public borrowers43 Nonbank foreigners

44 Other assets


46 Claims on United Slates47 Parent bank48 Other banks in United States-49 Nonbanks-50 Claims on foreigners51 Other blanches of parent bank52 Hanks53 Public borrowers54 Nonbank foreigners

55 Other assets


1983

477,090

115,54282,026

I 33,51ft

342,68996,0(14

117.66824,5 17

107,785

18,859

371,508

113,43680.909

} 32.527

247,40678.43193.332

60.977

10.666

158,732

34.433

1v . . . . . . .

1 19.28(116.S6543,352

5.89833,465

5,019

126,012

33.75628,756

I 5 .(KM88,91731.83832.1884,194

20.697

.3.139

152,083

75,30948,720

I 26,589

72,86820,62636.8426,093

12.592

3.906

145.641

1984

453.656

111,39378,10913,66421.620

320,16295,184

100,39723,141

101,2.18

20,101

350,636

111.42677,22913,50020,697

228.60078,74676,940

55^288

10,610

144,385

27,67521,862

1,4294,384

I11.X2837.95317.44.15,!14

! 1.098

4,882

112,809

26,86821,495

1.36!4.010

82,94533.60726,8054.030

18,503

2,996

146,811

77,29649.44911,54416,30!65,59817,66110,2466.089

11,602

.1.917

141,562

19X5

458,012

119,70687.2011.1.05719.448

315.67691.399

102,96023,47897,839

22,6.10

33(i,520

II6,6!885,97112,45418,21!

210,12972,72771,86817 ^6048^274

9.753

148,599

33,15726,97(1

1.1065.0X1

110.21711.57639.250

5,64433,747

5.225

108,626

32 09226,568

1,0054,519

73,47526.01126.139

1,99917.126

1.059

142,055

74,86450,55111,20411,10761,88219.04228.1926,458

10.190

3.309

1.16,794

Oct.

446,581

112,07879.99911.65920,421

305,56290.412

100.70724,21590.228

28,941

309,087

107.61278,33510,54418,733

190,03067,83562,83617 45541,904

11.445

142,398

.10.74724.800

1 3144i)33

105.53431,268.17,8.36.5.1.57

!1.27!

6.117

97,295

29,31224,123

I.I 103,879

64,87324,6.1221,011

1.85915,371

3,110

134,060

68,62444,4769,557

14,59159,61216,98526.205

7,2639,159

5,824

127,361

1986

Nov.

Al l foreign

446,618

108,42076.28012,03420.106

108,12291.576

101.29!23,31490,139

29,876

306,683

104,28174,76210,98618,511

190,65667,84164,92016 8^041,075

11,746

United K

143,8116

28,94022,671

1,5344,735

108,15329,96641.1455,038

32,004

6,713

97,125

27,56422,106

1.3644,094

66,1042.1,22924,020

3,81115,244

1.257

Dec.

countries

456,628

113,17881,98513,68517.508

314,34097,788

105,23723,58487,731

29,110

317,487'

109,23580,57512,81015,8.10

196,44871,70466,42116 s 8639J37

11.804

ingdom

140,917

24.59919,085

1.6123,902

109,50813,42239,468

4.99011,628

6,810

95,028

23,19318,526

1,475.1,192

68,13826,36123,2513,677

14,849

1,697

lahamas and Caymans

131,363

66,07842,2239,628

14.22759.43618.13925.74!6.6978.857

5.849

124,801

142,592

76,66151,06811,15612,41961,19018,80!27.4766,9298,182

4.519

136,81.1

Jan.

458,305

115,27!81,18512.72!19.365

311,41193,290

105.37723,31789,407

31.621

309,719

110,59681,42!11.53117,642

187,29667,47963,637

39J2 1

11,827

144,093

28,72023,330

1.2204,170

108,72030,21840,677

4,94232,883

6,653

95,359

27,07022.67!

9963,401

65,02222,72023,656

3 68114,963

3,267

135,627

72,64348.03610,62513,98257,82516.25826,3667,0268.175

5,159

129,474

1987

Feb. Mar.

457,819

113,81581,95!11,15818,704

312,09690.326

109,74823,19288.830

31.908

311,669

109,34180,15912.10216,880

189,87565,22068,320

40,015

12,45!

456,655

111,86581,12513,04417,496

111,59989,200

109,5802.3,57989,240

1.1,191

306,079

107,01679,46511.90715,644

185,41863,9836.5,99716 22439^214

13,645

146,188

28.8M21,126

1.2584,267

110,27429,57543.1X9

4 98 !12,527

7,06!

97,568

27,29022,749

1.0611,480

66,87222,57825.685

3,71614,89!

.1,406

145,486

28.50!2.1,.10!

1.2883.912

109,29728,78242,537

4,89733,081

7,686

95,319

26,66522.662

9803,023

64,46621.78524.225

3,66014.796

4,188

133,229

68,2.1844,12410,92411,19059,67116,15128.1196,9748,407

5,120

126,605

133,837

67.35741.15010,85512.15260.64!16.52928.5686,9158,631

5.837

126.WIN

Apr./'

484,827

127 64393,41415,18919,040

122,19091,288

116,0572.1.48!89,562

14.794

328,920

121,85291,45913,3X017,01.3

I92.X0266,53570,30416 5 1 ^3 9 A M

14,266

149,998

11,1X1125,315

1.5644,122

111.11329,55543,369

4,96433,225

7,8X4

99,398

29,06624,6X9

1,192.1.1X5

66,25721.95825.370

3.71215.217

4,075

146,437

77,82251,74712,56113.51462,85716,56231,005

7,1208.170

5,758

138,445

I. Beginning with June I9K4 dala, reported claims held by foreign branchesiave been reduced by an increase in the reporting threshold lor "shell" branches10111 VM) million lo SIM) million equivalent in total assets, the threshold now

2. Data for assets vis-a-vis other banks in the United Slates and vis-a-visnonbanks are combined for dates before June 19K4.

from VM) million lo SIM) million eapplicable to all reporting branches

A56 International Statistics ['I August 1987

3.14 Continued

1 .labihly account

57 Total, all cumiic i i 's

S8 Negotiable CDs*59 lo Untied Slalcs60 Parent h.ink61 Other banks in United Stales62 Nonbanks

61 lo foreigners64 Other brunches nf parcnl hank65 Hanks66 Ollicinl institutions67 Nonbank foicmncrs68 Olhci Itabililics

69 Total payable in I ' .S. dollars

70 Negotiable CDs1

71 To United States72 Parent bank71 Oilier hanks in 1 hilled Slalcs74 Nonbanks

75 lo loicigncrs76 Oilier branches of paicnt bank77 Hanks78 (Ulieial instittllions79 Nonbank foreigners80 Oilier liabilities

81 Total, illl eum-neies

S2 Negoliablc CDs'8.1 To I Inited Slates84 I'arcnl bank85 Other hanks in I nilcd Slalcs86 Nonbanks

87 I'll foreigners88 Oilier branches of parent bank89 Hanks90 Otlicial inslilntions91 Nonbank foidgncis92 Olhci liabilities

91 Total payable in I ' .S. dollars

94 Negotiable CDs'95 lo United Slalcs96 I'arcnl hank97 Other banks in United Slalcs98 Nonbanks

99 To foreigners1(10 Other branches of parcnl bankIlll Hanks102 Otlicial inslilntions101 Nonhank foreigners104 Other liabilities

105 Total, all inni'iicks

106 Negotiable CDs1

107 To United States108 Parent bank109 Olhci hanks in 1 lined StalesIK) Nonbanks

1 1 1 To foreigncis1 12 Other branches ol parent bankI H Hanks114 Ollieial inslitillionsIIS Nonbank foreigners116 Other liabilities

117 total payalik' in U.S. dollars

1981

477,090

n a188 070KI.'Vil29.45177..156

^69,68590.61592.88918,89668,«4s19,1.1s

n.a184.10579,01.528,91676,.1.14

194,1197.1,52257.022ll.S.ss51 2609,847

I5H.7.12

n a55,79914,IPI1 l,.!28it),450

9S.84719 01841,62410,15125,014

7,086

HI,167

n.a.S4.69IH.8191 1.04429.808

71.27915.40129 120

8.27920 277

1.197

152,08.1

n a1 1 1. 1 l «50,98016,05744,262

18 44 S14,91611,876

1,91911,2742,1.19

148,27S

1984

45.1,656

(7.725147.SSI78.71918.409SO.415

14V.y(l791 90978,20121 ,2815S.S142 ,441

167 145

IS 22714.1.S7I76,25417,91549.182

178.26077 77045, P I15.77.!1),S9410,087

144, .185

14.41 125,25014,6s1

.1257,474

77.424.611

10.4161 ,|S4IS.2017,298

II7,4')7

?1 070•"4,11111 ,1192.9806,786

sr ,92118,29418,1568,871

11,4021,199

146.SI 1

61 s102 9SS47,1621 1,9.184I.85S

40.12016.7K2P.4052.OS49 0792,921

14.1,582

1985

458,012

14,607l q s , s ! K8 1,91416 89454.7.10

245,91989,52976,81419.52060 07621 ,')28

151 712

11,06.1150.16280.88816.264SI,OKI

161.58!71,07817,.16514,15940,7818.904

148,599

11.26029,42219 1102.9747.1 IK

78,52521,189"•K 5819.676

16,8799,192

112.697

29.U7•""/ 75618,9562,8^65,974

s1,9801K.49114.1447.661

1 1.4821.624

142.(155

610101.81144,81112.77846,224

IS, 05.114,07s10,669

1,77(8,5112..S79

I.1S..122

O C

446.5S 1

12,444141,1267S.77714,79150,558

251,20287,88!80,70919.4166S.17419.809

121,699

29.206111. !()l71,8581.1,76847,675

IS 1.5166.5,07711,80211,12041,.1.17

7,6S|,

142,.198

28.84724.61(114.0142.1828.214

8O.2S224,19411.0018.068

16,9898,689

'W,S2II

26.92721,9601.1,S912.I0S6,261

47,49117,28914.1215.68S

10.1941.442

1.(4,(161)

68195,8404.1,4701 1.14441,226

15,4271.1,5748.V642,665

10,2242,1 10

1.10,1184

1986

N o ,

A l l fo re ign

446,6 IS

.12,9261.17.0'";7S.06214.51247,4.15

256,61187,99181,78418.81166.0012O.OS2

120,148

29,752129,22471.017l!,67944.528

|s 1.97264,178!\ !0611.11941 1497,400

I allied K

14.1.SII6

28,98422,5851.1,8112,1846,590

81,45521,71914,1217,875

17,5208,782

9'),.127

27,166211,OSS1.1,4.18

1,8804,7.17

49.05616.69515.9845,655

10,7221.050

iahainas all

1.11,.16.1

78494,49 14! ,57211.11119,790

11,84112,6618,5452,577

10.0582,245

127,.109

Dec.

count! ies

456,628

11,6291 5 1.6.128|s

ss;

,561646

,425

,775,146

77 80917,81562 98S19,592

116.406

28.466141,65078.47214.60950,569

156,80671,18111 85012,17119,4047,484

ingdom

140,917

'7 78124,6.5714.4692,6497.519

79.49825,01610,8776.816

16,7498.981

99,707

26.16922,07514.0212,125s,729

48,11817,95115.2014,914

10.050.1.125

Caymans

142,592

847105.24848,64811,71544,885

14,40012,6118.6172,719

10,4112,097

1.IS,774

Jan.

458,.105

11.195140.08970.04715.06854,974

264,46190,10!89,19919,5 1265 42920,158

12 1,9(10

29,9211.11,SS765,41914,04752,091

|SS,|8264,18017,15911.68819.9557.240

144,09.1

29,41219,46510.0042,1547,107

86,22921.59516.4798.484

17.6718,967

98,741

27.70116.8299.4511,8875.491

51,17416,18618.6266.096

10.0661.017

1.15,(.27

99 s98,71140.8451 1.68746.201

11,81112.12!8.4022.808

10,2982,068

1.11,572

1987

l-eh. Mar.

457,819

16,074140,04671,09511,6025!,149

261,94488,52486,47419,81867,12819.755

125,951

12.4071.11,61768.54012.505SO,572

154.14161.272.17,25!11,18940,629

7,584

456,655

14,871141.14170,86611,69556,780

260,58587,86784,97620,59167.1s|19.856

121,154

11.148112.41!6S.7SS12.59!54,065

149,94962,172.15,11611,19219,2697,844

146.IKS

12 2 1122,50112,7.152,1547,612

82.41821,2.10IS 4147,812

17,9229,016

101,60.1

10,17519,89412,157

1 9265,811

48,24214,12118,207

5,17610.516

1,292

145,486

10.96821,4.1.112,1.12

1,8167,285

81.72 121,17115,9717,827

18,.S549.162

9S.967

28,86818,94011,606

1,6025,7.12

47,51114.47118.0274.924

10.1091.628

1.1.1,229

8S595,22140,40910.hi44,661

!S,05!12,9728,507.1.01.1

IO,s6l2,100

129,18.1

1.1.1,8.17

8 1 !98,56019,625I0.S6848, .167

12,50111,67!8.1402,8.169,8521.96!

129,048

Apr./'

484,827

11,155152.44774,77216,91!60,762

277,91894,55992,64721,29!69,41921,.107

.140,161

29.50S141,12668.06415.45.5S7.607

161.21667.27819,11114,11840,509

8,114

149,998

29,1112.i,%71 1,2012,2058,561

87,15022,.190!7,562

8.87118,5279,170

101,79,1

27,18921,14412.1522,0"" 16,771

49,70814,16719.4985,786

10,057.1,75 2

146,4.17

885107.02842 9761.1..14550.707

16,4911 1,8919.4522,917

10,2112.0.15

140,457

.1. Heforc June 1984, liabilities on negotiable CDs were included in l iahil i l ithe United States or liabilities lo foreigncis, according lo the address o f t he ipurchase,


3.15 SELFXTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONSMillions of dollars, ciul of period

l lcm

1 I'otal1

Hy type2 Liabilities reported by banks in the United Slates-1 U.S. Treasury hills and certificates'

U.S. Treasury bonds ami noles4 Markelable5 Nonmarketahle1' <6 U.S. securities other than U.N. Treasury securities

Hy (lieu7 Western Km ope1

8 Canada9 l.alin America and Caribbean

10 Asia11 Africa12 Other countries'1

1984'

1X0,348

26,09059,976

69.0195,800

19.46.1

69,8181.5288,565

91,7011,26.15,472

1985'

178,380

26.71451.252

77.1541.550

17.690

74.4471.115

11.14886.448

1.8241,199

Oct.

211,293

27 19275.457

91.0921.100

16.052

88.7141.699

10.146105.150

1.7171.667

1986'

Nov.

211,117

27,77775.1.12

91.2251.100

15.68.1

87,7991,8929,096

105.5091,5455.276

Dec.

211,350

27,28875,650

91,5201,100

15.592

87.9172.0048.168

106,0211.5015.515

Jan.'

213,362

27.59175.718

91.0181.100

15.713

89.6101.1817,681

107.448t.KH)1.922

1987

Teh.'

215,240

29,18475.414

93,8521,300

15.470

90.6451.7617.426

108.8861.1641.158

Mar.

227,039

11.25279.629

99.6891.100

15.169

99.7125.1108,242

108.6421.1924.121

Apr.'1

234,192

12.06481.640

102,0551.100

15.1.13

103.6473.941

9.407110.240

1.2845.671

1. Includes the Bank for Internationa! Settlements.2. Principally demand deposits, lime deposits, bankers acceptances, commer-

cial paper, negotiable lime certificates of deposit, and borrowings under repur-chase agreements.

3. Includes nonmarketable certificates of indebtedness (including those pay-able in foreign currencies through 1974) and Treasury bills issued to officialinstil

gtions of foreign countries,deludes notes issued to foreign official nonreserve agencies. Includesand notes payable in foreign currencies.

5. Debt securities of U.S. government corporations and federally sponsoredagencies, and U.S. corporate slocks and bonds.

6. Includes countries in Oceania and Eastern Hurope.Non : . Based on Treasury Department data and on data reported to the

Treasury Department by banks (including Federal Reserve Banks) and securitiesdealers in the United States.

3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United StatesPayable in Foreign CurrenciesMillions of dollars, end of period

Item

1 Hanks' own liabilities2 Hanks' own claims3 Deposits4 Other claims

198f .

5.2197.2112.7M4,5011,059

198,('

8.58611.9844.9986.986

569

1984'

15.36816.2948.4177.857

580

1986

June

24.1.1021 26411.4119.8511,385

Sept.

29.15.124.56713.71610.8511,659

Dec.

29,48125.44113,15912.081•'.611

1987''

Mar.

16.41631.74813.92917.819

1. Assets owned by customers o\' the reporting bank located in the UnitedStates that represent claims on foreigners held by reporting banks for the accountsof the domestic customers.

Non . . Data on claims exclude foreign currencies held by U.S. monetaryauthorities.

A58 International Statistics LI August 1987

3.17 I.1ABIUT1KS TO FORKIGNKRS Reported by Banks in the United StatesPayable in U.S. dollars

Millions of dollars, etui ol period

Holder and type of liability

1 All foreigners

?. Banks' own liabilities} Demand deposits4 Time depositsS Other6 Own foreign offices

7 Banks" custody liabilities'S U.S. Treasury bills anil certificates.*1

lJ Other negotiable ami readily transferableinstruments'

10 Other

11 Noiinionetuiy international and regionalorganizations

12 Banks' own liabilities1.1 Demand deposits14 Time deposits1S Other'

16 Banks' custody liabilities4

17 U.S. freasury bills and certificatesIS Othei negotiable and readily transferable

instruments'19 Other

20 Offieiiil institutions"

21 Banks' own liabilities

23 Time deposits1

24 Other"

25 Banks" custody liabilities4

26 U.S. Treasury bills and certificates''27 Oilier negotiable and readily transferable

instruments'2X Oilier

l lJ liiinks9

10 Banks' own liabilities1! Unaffiliated foreign banks12 Demand deposits11 Time depos Is1

14 Other2

IS Own foreign offices

17 U.S. Treasury bills and certificates18 Other negotiable anil readily transferable

instruments''19 Other

4(1 Other fomuniTs

41 Banks' own liab lilies42 Demand deposits43 l ime deposits44 Other"

45 Banks' custody46 U.S. Treasury17 Other negotia

instruments48 Other

iabilities'1

bills and certificateslie and readily transferable

49 Mi Mo: Negotiable tune certificates of deposit incustody lor foreigners

1983

369,607

27V.O8717,47090,63225 874

145,111

90,52068,669

17,4674.185

5,957

4,6.32297

3,58475(1

1,32.5463

8620

79,876

19,4271,8377,318

10.272

60 44K54,341

6.08225

226,887

205,34760,2.36

8.75937.43914.038

145.111

7,4853,877

56,887

49,6806,577

42,29(1813

7,2073,686

3,03848.1

10.346

1984

4117,306

.106,89819,571

110,41326 268

150,646

100,40876,368

18,7475.291

4,454

2,014254

1,267491

2,440916

1,5240

86,1165

19,(1391,8239,3747,842

67,(12659,976

6,96684

248,893

225,36874 72210,55647,09517,071

150,646

">l 52S"IL448

7.2364,841

67,894

60.4776.938

52,678861

7,4174,029

1 021.367

10,476

1985

435,726

141,07021,107

117,27829.105

17.1,381

94,65669,133

17,9647,558

5,821

2,62185

2,067469

1,2001,736

1,4640

79,985

20,8352,077

10.9497,809

S9.15053.252

5.82475

275,589

252,7237lJ,34110,27149,51019,561

17.1,181

22 866"9^832

6.0406.994

74,331

64,8928,67.1

54,7521.467

'J.4394.314

4.636489

9.845

Oct.

501,095

365.91621.730

123.75236.312

184.142

115.13991.305

15.64928,184

3,902

2.426175

1939312

1.476308

1,1626

102,849

24,2681,840

10,59311.835

78.58175,457

2,920204

314,433

271.79087,6489.714

55.60122,333

184.142

42 64310.601

5,60026.442

79,911

67,4721D.0O055,620

1,852

12.4394,939

5.9681,5.12

6,759

1986

Nov.

512,653

178,02124,772

125,61835,915

191,718

114,63090.3 M

15,14328,936

4,315

2.944115

2.299511

1.371262

1.1045

I02.90S

25,165

1L27111,706

77,74475,132

2.4801.12

325,392

282,78591,06711,62657,51521,927

191,718

1 (K491

5,55026,566

8(1,1137

67,12910,82454,531

1,772

12.9084,465

6.2092,234

6,609

Dec

537,778

404,19521,786

131,28140,545

208,782

133,38390,257

16,52326,603

4,826

2,977199

2,166611

1,8492.59

1,59(10

1(12,938

24,7962,267

10,57711,952

78,14275,650

2,347145

349,605

109.792101,010

10,10164.48026,229

208.782

39 812

5,51324,338

80.411

66,83011,01954,059

1,752

1.1,5804,387

7 11742,120

7,343

.Ian

524,912

391,41722,492

125,01039,373

204,543

133,49589,278

14,65629,561

5,081

3,7.12181

2.5151,034

1.34986

1.261

103,311

25.3671.487

11,31112,569

77,94475,718

2.15869

119,111

296.41691,89310,43257.77223.689

204,543

47 6959,826

5,41327,4.16

77,389

65.88210.38953,4122,081

11.5073.648

5,8042,055

7,191

1987

l-cb.

521,876'

387,176'22,448

125.364'40,302'

199.263'

134.50090,695

13.83929,966

4,520

2,193157

1,488548

2,1261,213

1,1121

104,618'

26,626'1,513

11,38513,728'

77 99275,434

2,418140

335,083'

292 675'91,412'10,102'59.680'23,630'

199.263'

42 4081(M86

4,34027,582

77,656'

65.882'10,676'52,8112,395

11,7743,563

5,9692,242

7,722

Mar.

523,696

388,48122.273

124,43642,216

199.555

135.21693,048

14.88127,287

3,739

2,360246

1.230883

1,379154

1,2250

110,882

27,9911,923

11,05615,011

82,89179,629

3,129132

333,332

294,18594,610

9,50961,2672.1,854

199,555

39 1479J44

4.37725.026

75,744

63.94510,594.50,88.3

2,468

11,7983,520

6.1502.128

7,694

Apr.''

549,252

410,13322.541

132,33844.690

210.564

139,11897,489

14,62327,006

6,830

5,236159

1,1001,977

1,594428

1,15214

115,705

29,0781,979

12.36214,736

86 6278.3.640

2,832154

348,621

310,23899,674

9,77964,7.5025,145

210.564

38,3839^527

4,27124,586

78,095

65,58210,62452 1262,831

12,514.3,894

6,3682,2.52

7,925

1. hxcludes negotiable time certificates of deposit, which are included in"Other negotiable and readily transferable instruments."

2. Includes borrowing unties repurchase agreements.^. U.S. banks: includes amou

subsidiaries consolidated in "Conregulatory agencies. Agencies, (-foreign banks: principally amount

its due to own foreign branches and foreign>lidated Report of Condition" tiled with banknches, and majority-owned subsidiaries of

securities, held by or through reporting banks.5. Includes nonmarketahle certificates of indebtedness and Treasury bills

issued to official institutions of foreign countries6. Principally b;i

ccrtilicates o\' depiPrincipally tl

due lo head office or parent foreign bank, and the Inter-Americii1 1 . 1 ' i ' . . . : . . * ' i . . . . i . i ' i T _ . . . . . _, • <J 1

x ::d stibsid f head offforeign branclu

foreign bank,4. Financial claims on residents of the United States, other than long-term

nkers acceptances, commercial paper, and negotiable timeiit.International Bank for Reconstruction and Development, andand Asian Development Banks,

al banks and foreign central governments, and the Bank forInternational Settlements,

y. Excludes central banks, which are included in "Official institutions."

Bank-Reported Data A59

3.17 Continued

Area and country

] Total

2 Foreign countries

3 Europe4 Austria5 Belgium-Luxembourg6 Denmark7 Finland8 France9 Germany . . .

10 Greece11 Italy12 Netherlands13 Norway14 Portugal15 Spain16 Sweden17 Switzerland18 Turkey19 United Kingdom20 Yugoslavia21 Other Western Kurope'22 U.S.S.R ,23 Other Eastern Hurupe-

24 Canada

25 Latin America and Caribbean26 Argentina27 Bahamas28 Bermuda29 Brazil30 British West Indies31 Chile32 Colombia33 Cuba34 licuador35 Guatemala36 Jamaica37 Mexico38 Netherlands Antilles39 Panama40 Peru41 Uruguay42 Venezuela43 Other Latin America and Caribbean

44 AsiaChina

45 Mainland46 Taiwan47 Hong Kong48 India49 Indonesia50 Israel51 Japan52 Korea53 Philippines54 Thailand55 Middle-Hast oil-exporting countries56 Other Asia

57 Africa58 l;gypt59 Morocco60 South Africa61 yatrc . . . . . .62 Oil-exporting countries4

63 Other Africa

64 Other countries65 Australia66 All other

67 Nonmonetary international and regionalorganizations

68 International69 Latin American regional70 Other regional

1983

369,607

363,649

138,072585

2.709466531

9.4413 599

5208 4624.2901.673

3731.6031,799

32,246467

60,683562

7,40365

596

16,026

140,0884,038

55,8182.2663,168

34,5451,8421,689

81,047

788109

10,392.1.8795.9241.1661.2448.6323,535

58.570

2494,0516,657

464997

1.72218.0791,6481,234

74712.9769.748

2,827671

8444987

620917

8,0677,857

210

5,9575.273

419265

1984

407,306

402,852

153,145615

4,114438418

12.7013.358

69910 7624.7311.548

5972,0821,676

31,740584

68,671602

7,19279

537

16,059

153,3814.394

56,8972,3705,275

36,7732,0012,514

101,092

896183

12,3034,2206.9511.2A61.394

10.5454.297

71,187

1,15.34,9906,581

5071,0331.268

21,6401,7301,3831.257

16,80412.841

3.396647118328153

1,189961

5,6845,300

384

4,4543,747

587120

1985

435,726

429,905

164.114693

5.243513496

15,5414.835

6669 6674,212

948652

2,1141,422

29,020429

76.728673

9.635105523

17,427

167,8566,032

57,6572,76.55,373

42,6742,0493,104

111.2191.071

12214.0604.H757,5141,1671,552

11,9224,668

72,280

1.6077.7868.067

7121.4661.601

23.0771.6651,1401.358

14,5239,276

4,8831,363

163388163

1.4941.312

3.3472,779

568

5,8214,806

894121

Oct.

501,095

497,19.3

173,578972

6.070478606

21,2436,624

6468 8074,858

654738

2.2971,016

29.695401

84.308515

3.141OS

484

24.340

191,9165,718

64,1061,9188,895

59,1432.3983.775

61.2171.126

15113.2094.6456,5241.1671,608

11,39;4,917

99,36(1

1.58516.5348.663

7551.5301.986

41.3401,4461,7071,115

12,04510.654

3.973640

8634779

1.6231.199

4.0262.9411.083

3.9022,748

957197

1986

Nov.

512,653

508,338

176,0771,1976.863

576448

21,9175.856

7559,3044,410

512685

2,1971,301

30,406418

84,911544

3.30816

452

25,753

189.7735.202

62,6132,5494,684

61,8552.3253.873

61.1991,129

15.313,4884,7066,7291,1461,610

11,5924,914

107.054

1.45017.5409,347

7011.5282.380

46.1841,1281.7201,083

13,01010,984

4,01871084

26496

1,5931,272

5,6624,2861.376

4,3153 232

927157

Dec.

537,778

532,953

180.5211.1866.788

485580

22,8495 688

70610 8665,558

745700

2,393889

31.239454

85,336631

2,70523

702

26.256

208,0574,754

72.3472,9654,321

70,9182.0534,281

71,23.51,122

13613,6314,9036,8651,1631,537

10,4525,368

108,973

1,47618.9039.517

6731,5481.890

47,4361.1461,8651,120

12,35611,042

4,01870692

27174

1.5181.358

5,1284.205

922

4,8263.5121.033

281

Jan.

524,912

519,831

179,104972

6.729449565

21,3726.81.3

7459,3745.075

678657

2,238884

28,886375

87,871554

4,30921

535

26,072

195,2634,497

64,9452,2953,813

66,4702,2084,293

61.0491,124

14913,484

S,5707,3611,1101,609

10,4944,768

112,054

2,04619,5539,383

6641,4101.761

49.9971,0631,8111,282

12,32510,760

3,66260874

34154

1.3661.249

3.6742,677

997

5,0813,958

960164

1987

1 eh.

521,876'

517,356'

180.641'928'

7,583'520

22.654'5.797'

7498.489'5.224'

554709

2,333'1.062

27,555'359

89,905'565

4,322'23

546

25.116'

191.441'4.668

62.9682,3923.797'

65,504'2,0464,268'

71,120'1,081

14513,363'5.6796.484'1,131'1.583

10,362'4.894

113.433'

1.625'21.1279,328'

6861.5911.892

50.9201.0221.7791.224

12,129'10,110'

3.499'79176

201'42

1,1561,233

3,2262,459

767

4 5203,606

762152

Mar.

523,696

519,957

182,075790

7.210618925

23.8057.406

64110.0884.894

490688

2.1921.052

27.569412

88,049564

3,98230

669

26,523

195.0254.756

62.3902,2X13.692

69.7482.0604,271

61,0141,082

23013,0945.6456,6701,0621,630

10.3655,031

108,879

1.94820.1319,160

5001,3771,666

48,9711,1341,7371,235

11,5769.443

1,475753

9919640

1,1081,278

3,9813,020

960

3.7392.747

788204

Apr."

549,252

542,421

189,5511,0647,923

425930

27,3766,302

60110,3315,962

572660

2.2051.344

26.468833

90,950521

4,28032

771

25,253

206.2084.461

71.5622,1623,713

68,9832 2524,373

61,0441.164

14914.963

5 7817.1251.086.540

10,5625,280

112,554

1.88919,4519,334

5231,4601,451

53.1321,1721,4261,131

11.39310.191

3,702847101287

391,2131,215

5,1534.266

888

6.8305.561

850420

1. Includes the Bank tor International Settlements, Beginning April 1978, alsoincludes Eastern European countries nol listed in line 23.

2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the GermanDemocratic Republic, Hungary, Poland, and Romania.

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and

United Arab Emirates (Trucial States).4, Comprises Algeria, Gabon, Libya, and Nigeria,5, Asian, African, Middle Eastern, and European regional organizations,

except the Bank for International Settlements, which is included in "OtherWestern Europe."

A60 International Statistics U August 1987

3.18 H A N K S ' O W N C L A I M S ON I ' O R l l K i N K K S Repor ted by Hanks in the United States

Payable in U .S . Dollars

Millions of dollars, end of period

Area and country

1 Total

2 Foreign eountries

3 Lurope4 Ausljia5 Belgium-Luxembourg6 Denmark7 1'inland8 France

10 Greece11 Itah12 Netherlands13 Norwav14 Portugal15 SpamId Sweden17 SwitzerlandIK Turkey19 United Kingdom20 Yugoslavia21 Other Western l-urope'22 U.S.S.R23 Othei Fasten! Furopc-

24 Canada

25 Latin America and Canbbean2d Argentina27 Bahamas2K Bermuda29 Brazil30 British West Indies11 Chile12 Colombia13 Cuba14 Lcuador35 Guatemala1

Id Jamaica1

17 Mexico18 Netherlands Antilles19 Panama40 Peru41 Uruguay42 Venezuela43 Other Latin America and Caribbean

44 Asia( hina

45 Mainland4d Taiwan47 Hong Kong48 India49 Indonesia10 Israel11 Japan52 Korea53 Philippines14 Thailand15 Middle Last oil-exporting countries'1

Ki Other Asia

17 Africa18 Lgypt19 Morocco(id South Africa61 Zaired2 Oil-ex porting counli iess

d3 Other

d4 Other countriesd5 Australia(>d All other

d7 Nonmonetaiv international ami icgionalorganizations''

1981

391,312

391,148

91.927401

5,6191,2711,0448,7661,284

4769,0181.267

d')0I N I1 1713.3581.861

81247.364

1,718477192

1.598

16.341

205,49111.74919.611

56624.66735.5276.0723.745

02.307

1292 H

14,8021.1.547.84H2.116

97711,2872,277

67.817

2921.9088,489

130801

1.83210,1149.9432,1071.2194.954.5.601

6,654747440

2,634} ?

1.07 11,727

2.8982.216

642

164

1984

41)0,162

3')'>,363

99.014411

4.794648898

9.1171 106

8179.1 191,316

6711.2412.8842 2102.1211.130

16.1851.886

596142

1.389

16.109

207.8621 1,05058,009

59226,11138,205

6.8393.499

02.420

| i 8

2*234,885

1 HO7,7072.3841.088

I I.0172.091

66,3 Id

710I 8497.29 I

425724

2.08829,0669,285"• 1 s ^

L I255,0446.1*2

6.611728181

2.795IK

8421,649

3.4472.7d9

678

800

1985

401,60S

400,S77

l(Xi .4H198

1.772706821

9.1241.267

9918.8481.258

7061.0581.9082.2191.1711 20(1

62,1661.964

998130

1.107

ld,482

202.6741 1,46258,218

49921,28338,8816,6011,249

02,39(1

194224

3 1,7991,1406,6451.947

96010,8712,067

66,212

6191.5156,797

450698

1,99111,2499,2262 224

8454,2986.260

1,407721175

1,94220

6101,520

1,3902 411

978

1,030

Oct.

41)7,832

407,460

IO4.d47191

7.712796

9.6001 4 P

626/.7I32.192

71 1699

1.9222,1712,8121,612

18.2481.886

799296

1,09(1

19,112

196.86112.24353.557

41224,74019,9816 1142/i74

02,420

122209

31,061967

6 0941.621

93011.1852.086

78.631

7581.5288,317

l i dd94

1,61045.240

7.0232.071

61 11..19(i7,027

4,511577d2l

1,149Is

1411.201

1,2592.1411.111

172

1986

Nov.

418,485

418,313

107,047748

8,1-19764

1,1769,1741,769

7928,3912,427

712682

1,7222.1431,1741,119

19.1201,813

d(IO221927

20.138

I9d,76817.01714.196

-14725.88239.694

6.5262.(i65

12.391

UK2 Id

30.659911

5.3141.6 IK

9411 1,0192.067

86.23d

7911.8127.571

127722

1.61111 HI6.5.111.972

5913.7787,162

4.71?560621

1,58d27

69(11.251

1.1871.9801.207

171

Dec.

444,45K

441,475

107,549718

7,511700947

1 1.401.826

64K9,011.314

614706

1.4591,9451,0491.541

58,3801.833

556141944

20,957

208,90212.07)19,877

41821,18646,30

6.112,81

2.4314(

19810,4901, 1391,4231,637

9401 1 012

1,937

96.148

7872,6758,2K)

321718

1.64559,8527, s;s;

2.202577

4, 227,845

4,

1,

,2167983128

,881,208

3,2971,9121,141

2,981

_.

Jan .

420,6.12

420,570

100,817654

7,571667797

9,095

" ( i l l

7,9162,087

7-11677

1,4792,2802,6221,469

15.7651.771

53d1 %

1,379

20,749

195,09412,1 1411.694

41121,76641.1286,4772,801

2,421111199

30.271960

1,2701,624

93710.0181.864

95.988

9832,6178.443

311d99

1,61158.1116,7832,147

12 15.4838.05 1

-1.599577190

l.ild36

7251,15d

3,3212,0811,242

62

1987

1 eb.

417.4.37'

417,25')'

102.406'159

8.920'631

1.01010.001

1.7 16'(,14

7,1392,107'

766679

1,6372.-1222,4231,43d

16.411'1.769

491401971'

19.193'

196,310'12.21153,052'

37621.778'41.084'

6,K,12.743

17.422

145199

29.868'1,029'5.2041.616

9121 1.1 71

1,910

91,799'

8732.8909,221

325679

1.51115,6236.1612.120

557'4.8926.922

4.673'593581

1.543'42

7411.168

2.8781.902'

976'

178

Mai .

413,312

412,76S

99.183660

8,051642

1,0869.731

d,2

I

30>7971

,6 13766

2'4172,3361.177

51.9561.840

781364

1.014

19,799

198.64412, 6251,725

1-1525.97942,123

6.4012.692

2.118H I192

29.799992

1.4(1.51.583

95911.278

1.868

87.426

1.3732.6968.254

•186612

1.52852,213

1.9552.275

4901.1506.357

4.834618184

1,53142

8561.204

2.8811.991

892

1-14

A p i . f

437,')36

434.036

107 8687-17

8,520116

,10010.810

U,6

" 4 1 1' .5171,071

678666

1,9362,4042,8471,561

59,7671,761

67(1380

,070

20.251

208,99412.15462,7(i 1

74026,22142,681

6.1992.679

92.188

120189

30,0841,2021.8491.584

9171 1,063

1,910

89,199

1,45(11,1947.822

414621

1.49214,6025,3313,1 14

'•1614 5687.111

4,7715741 6 1

1,16041

791.216

2,95(12.066

884

1.900

1. Includes the Hank fur International Settlements. Beginning April 1978, alsoincludes Hastern Kuropean countries not listed m line H.

2. Ueyinniny April 197K comprises Bulgaria. Czechoslovakia, the GermanDemocratic Republic, Hungary, Poland, and Romania.

.V Included in "Other Latin America and Caribbean" through March ll>78.

4. Comprises Mahrain, Iran. Iraq, Kuwait, Oman, Qatar, Saudi Arabia, atUnited Arab Lmiiates (Tniciai States),

.•\ Comprises Algeria, (iabon. Libya, and Nigeria.(>. [deludes the Hank for International Settlements, which is included

"Othei Western l-.uiope."

Bank-Reported Data A61

3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in theUnited StatesPayable in U.S. DollarsMillions of dollars, end of period

Type of claim

1 Total

2 Banks' own claims on foreigners3 Foreign public borrowers4 Own foreign offices1

5 Unaffiliated foreign banks6 Deposits7 Other8 All other foreigners

10 Deposits11 Negotiable and readily transferable

instruments1

12 Outstanding eolleetions and otherclaims

13 MF.MO: Customer liability onacceptances

Dollar deposits in banks abroad, re-ported by nonbanking business en-terprises in the United States4 . . .

1983

426,215

391,31257,569

146,393123,83747.l2(i76.71163.514

2^969

26.064

5.K7O

37,715

46,337

1984

433,078

4()0.1(>262,237

156.216124,93249,22675,70656,777

1 "* 916:U80

23,805

5,732

37.103

40,714

1985

430,489

401.60860.507

174.261116,65448,37268 28250,185

28,8813,335

19.332

6.214

28.487

37,780

Oct.

407.83260.745

182.548117,86553.54664.31946,675

42,771

1986

Nov.

418.48560.785

189.732120.48553,300(.7.18547,483

44,772

Dec

478,429

444.45861.582

212,02!122,81957.14965.47146.034

11 97 14^413

24.044

5.514

25,606

43,597

Jan

420,63261,83.3

192,120121,00554.26666,74045,674

46,611'

1

Feb.'

417,41761,709

191,000120,41155,49464.91744.317

48.002

)87

Mar.

444,813

413,31262,631

189,850116,56753,63662,93!44,264

31,5013,320

20.551

7.630

25,319

42,595

Apr, ' '

437,9.1665,486

207,023120,43857,46162,97844,989

n.a

1. U.S. banks: includes amounts due from owsubsidiaries consolidated in •"Consolidated Reporregulatory agencies. Agetwies, branches, and >foreign banks: principally amounts due from heaand foreign branches, agencies, or wholly owneparent foreign bank.

2. Assets owned by customers of the reportiStates that represent claims on foreigners held byof their domestic customers.

n foreign branches and foreignof Condition" filed with bankujoritv-owni'd subsidiaries ofoffice or parent foreign bank,subsidiaries of head office or

ig bank located in the Unitedx-porting banks for the account

. Principally negotiable time certificates of deposit and banker's acceptances4. Includes demand and tin

certificates of deposit denomiiuidescription of changes in datap. 550.

N O I L . Beginning April 1978,basis, but the data for claimsquarterly basis only.

ie deposits and negotiable and nonncgotiableted in U.S. dollars issued by banks abroad. Foreported by nonbanks, see July 1979 Bui i i i IN,

lata for banks' own claims are given on a monthly>f banks' own domes tic customers are uvuiUble on u

3.20 BANKS' OWN CLAIMS ON (JNAFFII.1ATFD FOREIGNERS Reported by Hanks in the United StalesPayable in U.S. DollarsMillions of dollars, end of period

Maturity; by borrower and area

1 Total

By borrower2 Maturity of 1 year or less1

3 Foreign public borrowers4 All other foreigners5 Maturity ot over I year'6 Foreign public borrowers7 All other foreigners

By areaMaturity of 1 year or less1

8 Europe9 Canada

10 Latin America and Caribbean11 Asia12 Africa13 All other2.

Maturity of over I year1

14 Europe15 Canada16 Latin America and Caribbean1 I f\ S L t t . . . i . »

18 Africa19 Al l other-1

1983

243,715

176,15824,039

152,12067,55732,52135,036

56,1176,21 1

73,66034,4034,1991.569

11,5761.857

41.8884,8502,2861,101

1984

243,952

167,85823,912

143,94776.09438.69537.399

58.4986.028

62.79133,5044,4422,593

9,6051,882

56.1445.3232,0331.107

1985

227,903

160.H2426,302

134,52267,07834,51232,567

56,5856,401

61,32827,966

1 7512,791

7.6141.805

50,6744.5021.538

926

June

222,597

152.58923,171

129,41870,(KI837,36532,643

57,9486,074

57,39725.8023,2972.073

7,9342.256

si,5724,0341,497

714

[986

Sept.

224,693

155,11622.527

1.12.58969,57738,18931,388

S9.3816,160

58.19126.4743.0711.8.18

7.2971.930

54.0933.9761.479

802

Dec.

23O,N97

159,41424,920

134,49471,48339^8163 1,667

61,0575,794

55.87929,3722.8544.458

6.7961.910

56,1364,0911.534

795

1987

Mar ''

222,841

151,00222,339

128,66471.83940,99830.840

57.45.55.497

53.63529.251

UI652.099

6.8941.936

56.6294.1811.624

571

1. Remaining time to maturity. Includes nonmonetary international and regional organizations.

A62 International Statistics LI August 1987

.1.21 CLAIMS ON I-OKKIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 '

liillions ol'dollars, end ol'period

Aiea 01 counlrv

| Total

2 (i-10 countries ami Suit /e i land* Beijiiiim-l uxemboui)'4 | '(-juice> (ierinany(» 11;11 v7 NetherlandsH SwedenlJ Switzerland

10 United Kingdom11 C;mada

1.1 Other developed countries14 Austria1 ^ Dcnmai kIf) i'Mllillul1 / (ireeceIS Norway '.'.'.19 Portugal20 Spam, . ...21 1 mkev22 Other Western luuopc2S Soulh Alnca-•» Australia

25 Ol'KC countries

27 Vene/ueki

29 Mitklle Kast countriesUt African countries

U Non-Ol'KC developing countries

l.alin Amenta'2 Argentina

'•1 ChileV'I Colombia"> Mexico1 / PeruW Otliei 1 .alin America

AsiaChina

W Mainland40 I aiwan .11 India12 Isiael13 Korea (South)14 Malaysia15 I'luhppiues(6 Thailand17 Olher Asia

Mm-itIX Lgvpl19 Moioeco10 Zaire11 Olher Afr ica'

12 Kaslei n Luiopc1.1 ll.S.S.R14 Yugoslavia^ Other

16 Ollshoie banking centers17 BahamasIX Bermuda19 raymnn Islands and olher British West Indies60 Netherlands Antillesi l I'anama^

62 1 .ebaiioni.l Hong Kong

64 Singapore65 Others'1

Mi Miscellaneous and iinallocalciL

19X2

42*6.1

179.6B . I17.112.710.11.65 01.(1

72,110.410.2

11.11.92.42 21 01.11.17 11.42 11.74.1

2(i.')

10.12 98,12 X

106.5

X.9

1.124 2

2.64.0

2S.l

s2 1

10.72,1d . l1,61.1

1.27

.12 4

6 2.1

2 2.1/7

66.019.0

.912.8

1.17.1

.111.19.1

.0

17.1

I'IKl

4.1.1.')

167.812.416.211.111.

1.s4

65.8.

29.

16.1.;1.42.41 81.11.17.11,'184,75.4

2K.4

i) 91.4').X. 1 . )

110.K

').1

d.4

1.22.1.X

2.44.2

.1S.2.9

1.911.2

1 Xh iT 1

I )

1.5.8.1

2.1

s\ I

.22.42.X

6S.921.7

.912.24.21.8.1

11.810.1

.0

16.X

1984

4115.7

14K.1K 7

14.1) 0

10.1.9

1.21.9

60.17.9

27.1

1.1.6.6

2 29

"* 91,0

4( 1

91.74.16.0

2- .9

9.1"I 1TV)2.1

1! 1.8

8.7

2

.0

21.9

.71.1

9

1X

),6

i,(lS'

.1

2.K1

2.1

.4

.12.12.0

65.62 s

911.8

1.46.7

.11149 8

.0

17.1

June

1 % 8

146.7K.9

1.1.59.6K.61.72,94,0

61,7X.I

21,7

.12.11.61.9l.K-I (j2 i)L I.1.92.0l.X1.96.2

22.K

9 11.16.12.2

110.0

K.6

6.9

21 12 1.1.7

.1s. l

92.)

10.02.8(ill1.6.9

1.0.81

2.0

4.1.1

2 2LK

61,92 1 , 1

.912 .1

.1.2

1.4.1

11.4

9.7.0

16.9

19K1

Sepl.

194 <)

152.09 1

LLX9.X8 41.41.14.1

67.17.6

24.1

12.01.72.1l.X1 X1.41.46.12.11.7I.l5.(i

22,7

9 I)1.16.22.1

107.8

8.9

6.6

24.41.9l.s

1.11.11.11.1

10.42.7(i.O1.7'

9

1,09

,12.0

4.6.2

2.11.9

58.S16.6

.812.12.16.1

0

9.4.0

17.1

Dec

V)l ')

14X19,1

1 2 . 1

10.59 81.72.X4.4

64 67.0

24.2

.10.4l.d2.41.61 62,91 .11,K1.92 01.25.0

21.62.1X.9.1.0S S2,0

105.1

X.')

7.0

24.2l.X1.4

s4.1121.69 42,45,71,41.0

1.0.9.1

1.9

4.2.1

2.2l.X

61.421.4

71142,16 0

111 .19 9

(I

16 9

Mar

194 4

156.4'S.l

11.8I1..VX 1.1.52.95.4

68 56,2

28,1

11.61.62 s1.9

2.7I.l6.42..12.4^24.9

20.7

X.71.1

4 Xl.X

101.6'

8.9

7.0

24.01,71,1

64.11.2I.l9.12.2\ ( i

I I.9

.9

.9

.11.9

4.0.1

2.01.7

61.621,1

711,12.11.9

.111.4X.4

.0

l«,.7

19

June

V)l V

9.01.1.111.59.11.42.95.6

68.9d.X

27.4

10.61.72.41.6> dI 01.06.42 12 11.14.2

20. (>

2.18.81 0VI)1.7

101.1

9.2

7.1

21.X1.61.1

6.1.71 1l.d8.72.0S.71,1

X

.9

.9

.11.7

4.0. l

2.01.7

17.VL, \ l

,S'

1.1.0'2, 1s.s

.19.49.1

0

17.2

86

Sepl.

V)l 4'

1.1X.9X.1

14.d12.1X.I1.92.74.X

70.06.1

27.7

29,41.7\ i1.7i 1

I'll6 72 11,61.14,1

20.02 18.72.84 61,7

99.7

9.1

7.1

2 l.X1.11.1

64.11.11.47 12.11.410

7

.7

.91

1.6

1.4.1

1.91.4

62.620.0

.41 1 2

1.96 K

110.49.7

.0

17.1

Dee.'

191 7

158.1X 4

11.811.79.04.62.4s 1

71.95.4

2.1.1

26.11.71.71.4-< 12.4

.Xl.X2.01.51.1.!.5

19.1

8.62.14.11.7

9 9,1

9.5

7.1

2.121.X

1.41.1

.44.91.2l.dd 72.15.4

97

.7

.9

.116

1.2.1

1 71.4

61.522.X

,714.1

l.K1.1

.111.29.1

.0

20.1

19X7

Mar.'1

.195.H

161.29.1

11.112.18 64 41.01 X

74.55.2

27.1

26.21.9l.X1,1i I2.1

.96. '1.9l.d1.11.2

70.2

2.1X.72.2s sL6

99.9

9.1

2,021 X

1.41.0

.91.4l.X1.46.21.91.4

.9

. ( i

6.9.1

1.4

1.1.1

1.61.1

65 1.M.H

.8I.I.I1.7s.s

.111.1X.X

.0

17. K

1bra< JIT

The banking off ices covered by these dala arc ih•lies o f U S . , ' o w n e d banks and <il U.S. subsi i l iai ic

u n c o v e r e d include (1) U S

!.S. ollices and loreignol Torcign-ownei

neigil subsidiaries of i'.S. banks. To minimize duplicalion, the

.1 banks,ks . and

.ted to excludeforeign braiK

le claimsof Ilie • banki

ibine foreign branch claims in (able 1.14 (!..S, ollices i

1 In d (IK• 1 IK (excluding

cla

brand-g inslhe sur

Icginniug with .Iniceii reduced b\ ai

19K4 data, icpc

held I- U.S.Jala in I

lYoni S50 million to SIM) million eqiiivalenl in Uilal assets, the.able (o all leporting branches.

ill ice iis lab

firotigtt 10) with 'ncies anil branche

1. Besides the ()ually, this group inKuwail, Libya. Nig'as Bahrain and Om

ot I'etrok^lni l.\p*M\ing C \ iiultvisl-lodes olhei members of OI'LC (Algeria, (iabon, Iran, Iraq,ia. Qatai. Saudi Aialiia. anil United Arab l-inirales) as \vi 'i (nor formally members of OI 'LO

us held by foreign branche.-sholdkfoi 'Miel l" blanche

4. Iwcludcs l.ihti. Inchliles C.ui.il /.one beginning December 1979.6. loreign branch claims only.7. includes New Zealand, Liberia, and international and icgional organiza-

tions.

Nonbank-Reported Data A63

3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in theUnited Stales'Millions of dollars, end of period

Type, and area or country

1 Total

2 Payable in dollars3 Payable in foreign currencies

liy type4 Financial liabilities5 Payable in dollars6 Payable in foreign currencies

7 Commercial liabilitiesK Trade payablesl> Advance receipts and other liabilities

10 Payable in dollars11 Payable in foreign currencies

iiv urcn or countryFinancial liabilities

12 Hurope13 Belgium-Luxembourg14 Trance15 Germany16 Netherlands17 Switzerland18 United Kingdom

19 Canada

20 Latin America and Caribbean21 Bahamas22 Bermuda23 Brazil24 British West Indies25 Mexico26 Venezuela

t / / t S l d ' ' l . b ' - * I I F F - . . >

28 Japan29 Middle liust oil-exporting commies-

30 Africa31 Oil-exporting countries'

32 All other4

Commercial liabilities33 Kurope34 Belgium-Luxembourg35 France36 GeriViiiny37 Netherlands38 Switzerland39 United Kingdom

40 Canada

41 Latin America and Caribbean42 Bahamas43 Bermuda44 Brazil45 British Wcsl Indies46 Mexico47 Venezuela

48 Asia49 JapanSO Middle Hast oil-exporting countr ies-5

51 Africa52 () i l -c\port ing countries1

53 Al l other4

1982

27,512

24.2803,232

11.0668,8582,208

16,4469,4387,008

15.4231,023

6.501505783467711792

3,102

746

2.751904

1428

1.027121114

1.039715169

170

12

3,83152

598468346167

1.027

1.495

1.57016

1176032

436642

8,1441.2265,503

753277

651

1983

25,.346

22,2333,113

10.5728,7001.872

14.7747 76S7.009

13,5331.241

5.742302843502621486

2.839

764

\S96751

1332

1.041213124

1,424991170

t*>0

27

3,24562

437427268241732

1,841

1,4731

6744

6585432

6,7411,2474,178

553167

921

1984

29.J57

26,38')2,968

14,50912.5511.955

14,8497,0057.843

13,8361,013

6,728471995489590569

3,297

863

5.0861.926

1335

2.103367137

1,7771,209

155

14I)

41

4,00148

438622245257

1.09S

1,975

1,8717

11412432

586636

5,2851,2562,372

5H8233

1,128

1985

Dec.

27,741

24,3523,389

13.51611.3132.203

14,2256,6857,540

13,0391,186

7,616329857434745676

4,254

839

3,1841,123

429

1.84.3IS3

1,8151,198

S2

120

50

4,07462

453607164379976

1,449

1.08812775844

430212

6,0461,7992,829

5K7238

982

Mar,

26,301

22.S443.757

12.97110,7052,267

13.3295,6187,711

11,8191.490

7,460318851188630692

4,217

832

2,810958

426

,63920

1

1,8241,217

7K

120

32

3,92566

382546MS261957

1.445

1,10726

21864

7256364

5,3842 0192,171

4K6148

983

1986

June

24,698

21.0403A57

11.5789.5152.063

13.120S.4727,648

11.5251.595

7,022288686280635561

4.274

367

2.443874

1427

1,38630

3

1,6851,214

43

120

49

3,82658

358561586284864

1,357

1,24210

294453S

235488

5,0752,1001,787

567215

1,053

Sept.

24,460

20,6333,827

11,7009,4182,281

I2,76()5,5927,168

11,2141,546

7,254322501319708692

4,272

362

2,269863

428

1,256185

1,7901,354

.1

42

21

4,11775

369628613360

1.086

1,240

84137

1724145

196207

4,7812.1141,490

578176

980

Dec.

25,321

21,5513,768

12,0709 7052,365

13,2516,2906,961

1 1,8481,404

7,851245729372701714

4,790

403

1,969621

432

1,1602?

3

1,7671,352

X

11

79

4,42199

338693491384

1.279

1,386

85019

132S948

210215

5,0112,0461,666

619197

963

1. For a description of the changes in Ihc International Statistics tablesJuly 1979 BUI.I .M'IN, p. 550,

2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,United Arab Kmirates (Trucial States),

} . Comprises Algeria, (iahon, Libya, and Nigeria.4, Includes nonmonetary international and regional organizations.-V Revisions include a reclassification of transactions, which also aifecls the

totals lor Asia and the grand totals.

A64 International Statistics L_] August 1987

3.23 CLAIMS ON UNAITIUATKI) l-ORI-KiNKRS Reported by Nonhanking Business Knterprises in theUnited Slates'Millions of dollars, end ol' period

Type, and area ()l country

1 l'otii!

2 Payable in dollars.1 Payable in foreign currencies

«.v tvpr4 Linanciai claims5 Deposits6 Payable in dollais7 Payable in foreign currencies8 Oilier financial claims9 Payable in dollars

10 Payable in foreign currencies

11 Commercial claims12 Trade receivables13 Advance paymcnls ami other claims

14 Payable in dollars|5 Payable in foreign currencies

llv area or countryFinancial claims

16 Luro17 lie ginin-l .uxemhourgIK [ ranee19 (iermanv2(1 Netherlands21 Switzerland22 United Kingdom

21 Canada

24 Latin America and Caribbean25 Bahamas26 He inuda27 Brazil28 Hi- ish West Indies29 Mexico10 Venezuela

U Asia

11 Middle Hast oil-e.xpoiting countries-

14 Afr icaI s Oil-export ing countr ies'

16 Al l other '

Commercial claims.17 Lurope.18 Belgium-Luxembourg19 France40 Germany41 Netherlands42 Su itzerland4.1 United Kingdom

44 Canada

1.5 l a t i n America and Caribbean46 Bahamas47 Bermuda48 Brazil49 Brit ish West Indies50 Mexico51 Veiezt iel . i

52 Asia53 Japan54 Middle Last oi l-export ing countries1

55 Afr ica56 Oil-export ing count i ies1

57 Al l o ther '

1982

2K.725

26,0852,6 10

17,6841.1,05812.62K

4104,6262,9791.647

1 1,0419,99.11.047

111.47856.1

4,873IS

11417897

1074.064

4.177

7.546.1.279

.1262

1.2552741.19

69K151

15

15848

11

.1.826151474.157150Kill811

6.1.1

2,52621

261258

12775151

1,0501 ,047

751

588140

417

1981

.14,911

11.8151,0%

21,78(118,49617,99.1

^0.15,2841,3281,956

11,111'J.72I1.410

1(1.494617

6 48817

1501617118

5.817

5,989

10,2144,771

1025.1

4.2062911.14

7M297

4

14755

159

.1,6701.15459.149114117809

829

2.6958

190491

7884•>-]-}

1,0611,114

7.17

588119

286

1984

29,901

27,1042.597

19,25414,62114.202

4204.6 U.1.1901.442

10.6469,1771,470

9,9127.15

5,76215

126224

6666

4,864

1,988

8,216.1.306

( i

10(14,04.1

215125

961151

1.1

2108.5

117

.1,80116544(1.174115271

1,06.1

1,021

2,0528

115214

758.1206

1.0711.191

668

47(1114

229

1985

Dec.

28,4.17

26.1152,102

18.45115.20414.589

6151.2482 2111,0.15

9,9868,6961.290

9.111652

6.5.1010

184221

6174

5,725

1,260

7,8412,698

678

4,57118048

6 %475

4

10.129

21

3..M3175«f>.146284284898

1,021

1.7511191

2066

M 01.57

2.9821.(116

6.18

4171.10

257

Mar.

.11,.W.I

29.1962,187

21,99618,61218,155

457.1..1842.2911,09.1

9,.1878,0871,100

8.750617

7,18.110

21717461

1666,110

4,020

10,071.1,516

277

6,0.1417841

619.150

2

8727

14

3,190148SH4199221247795

1.061

1,5922782

2177

.188172

2,6098016.10

491167

244

1986

June

.1.1,282

:II,IOO2,182

24,11920,83320,278

555.1.1062.2851.021

9.1427 8021.341

8.5.17606

9.626| |

257148

17177

8.799

4.429

9.2511.110

1775

5.40217642

72i499

2

8925

20

3.3041.11y>\41X2 i l l228674

965

1,61124

14819329

.123181

2,574845622

450170

2.17

Sepl.

.12,59')

10.1212,475

23,50318.56618,078

4884,9371,7171,220

9 0967.9241,172

8,129767

9,54867

41812944

1.188,52.5

3,817

9 1002,912

19101

5,87117340

671.187

•>

8418

81

1,14412.141219718.1232830

929

1,66529

1.12206

23299190

2,471788.597

456168

231

Dec.

.1.1,101

30,4982,60.1

21,55018,79618,247

5494,7541,4561,298

9,5518,4051,146

8,794756

8,67841

1118687

1.147,948

4,119

9,1062,534

1367

6,19417324

1,3151,003

11

8.528

27

.1,51812738742X199211820

909

1,82529

157229

55385216

2,61984(1506

4641.34

215

1. For ii description til' the changes in the International SiaJuly \i)ll) Ilui 1.1. i IN, p. 550.

2. Comprises Hahrain, Iran, Itucj, Kuwait. Oman, (,)atar, SUnited Arab hmirates (Trucial States].

tiidi Arabia, and

.1. Comprises Algeria, Gabon, Libya, and Nigeria.4. Includes nonmonctiuy international and regional organizations.

Securities Holdings and Transactions A65

3.24 FOREIGN TRANSACTIONS IN ShX'URlTIKSMillions of dollars

Iransactions, and area or country

STOCKS

1 Foreign purchases2 Foreign sales

3 Net purchases, or sales ( - )

4 Foreign countries

5 Europe6 France7 Germany8 Netherlands9 Switzerland

10 United Kingdom11 Canadii12 Latin America and Caribbean13 Middle I-iiM1

14 Other Asia15 At rica16 Other countries

17 Nonmonetarv international andregional orgiinizatitms

BONDS-

18 Foreign purchases19 Foreign sales

20 Net purchases, or sales I —)

21 Foreign countries

22 Fllrope23 France24 (icnnnny25 Netherlands26 Swit/.erland27 United Kingdom28 Canada29 Latin America and Caribbean.10 Middle Hast1

31 Other Asia32 Africa.1.1 Other countries

34 Nonnlonctary international andregional organizations

35 Stocks, net purchases, or sales t ).36 Foreign purchases37 Foreign sales

38 Bonds, net purchases, or sales f 139 Foreign purchases40 Foreign sales

41 N e t p u r c h a s e s , o r sales ( - ) , o f stocks a n d h o n d s . . . .

42 F o r e i g n c o u n t r i e s

43 Furope44 Canada45 Latin America iifid Caribbean46 Asia47 Atrica48 Other countries

49 Nonmonetary international andregional organizations

1985

81.99577.054

4,941

4,857

2 057438710

-12375

1,665356

1,7IX238296

24168

84

86,58742,455

44,132

44,227

40 047210

2,001->->2

1 98732,762

190498

2.6486,091

II38

-95

3.94120.86124.803

-3,99981,21685,214

-7,940

-9,003

-9,887- 1,686

1,797659

7538

1,063

1986

148,134129,436

18,n98

18,905

9,5V)459341936

1,5604,826

8071,029

9753,865

297373

- 2 ( 1 8

122.74371,840

511,911.3

511,056

.39,307388

-2513K7

4.52933.899

5481.4682.961

11,53916

1.39

»47

1,45250,29251,744

3,098166,700169,798

-4,550

-5,665

-17 675875

3,46911,342

521.977

1.115

1987

Jan.-Apr,

82,07568,944

13,1.30

13,210

5,7171,574

- 4337687

2,607566

1.047-2495.668

74387

- 8 0

39.28627.365

11,921

11.6(16

9.312831079

7768.361

612395

- 1461,482

6• 55

315

-2.56126,30428,865

-91662,91063,826

-3,477

-4,138

- 4,802-1,167

3232,034

11-538

662

1986

Oct.

U

1(1.97912,300

-1,322

-1,179

- 1.124- 92

- 104-19

- 405-4HI

115154

- 5116.19

-97

-143

9,75^5,539

4,21.3

4,455

3.4751)

82-55265

3,1778K

101- 33817- 111

-24.3

1,3116,4265,1 15

2,12516,27414,149

3,436

3,117

-65794

5023.237

1-59

320

Nov.

S. corpora

12.0.3312.086

- 5 2

- 1 9

-485-69

3-50

-236-114

4136792802348

- 3 4

9.2776,105

3,172

2,853

2,10(1328

-108(13204

1,41615466

- 355902

3- 15

319

Dec. Jan.

e securities

14.09612,320

1,776

1,6%

W113241447

363102220267450

1784

80

11,8797.733

4,147

4,251

3,074321952

- 1 172,770

153102

-2581.174

13

-104

Foreign securities

3914.1903,799

68312.66313.346

-292

-294

1,010-106

16820

419

2

654,7094,644

- 44116,31616,756

-376

-825

- 1,169-264

2031.511

3-909

449

17,61715,956

1,661

1,741

1,0611406253

10164710030813688- 149

- 8 0

9,3087,178

2,130

2,218

1.3756

213- 766

1,392-103

103-57917

0-16

- 8 8

- 1675,0015,169

32011.42711,107

1S2

10

188- 396

189168

433

143

DM

Feb.' Mar.

20.70417.599

3,105

3,204

1.786446

1691

100996118331

-1751,153

15212

-10(1

8,0215,457

2,565

2,179

1,40217

145- 29

781,178

36498

-139469

1-16

386

23.06417,999

5,065

5,028

1,843656

1969

180783343372

-2302,638

161

37

12.1218,274

3,847

4,005

.1.60581

19869

15-82.936

19072•12169

3_ T)

-159

-5617,1757,736

- 7115,82115,891

-632

-712

1,220-566

104925

045

80

-7147,0097,722

-48916,65117,140

-1,203

-1,508

-658- 2 0 2- 4 2 8

106- 1

- 5 2 4

305

Apr.' '

20,69017,390

3,300

3,238

1.028332

- 101124306181241

3620

1,7905964

62

9.8366,456

3,380

3,204

2,9.10-221204774

2,85516112362

-7310

176

7,1198,238

-67519,01219,687

-1,794

-1,929

-2,7173

259636

891

135

1. Comprises oil-exporting countries as follows: Bahrain. Iran. Iraq, Kuwait.Oman, Qatar, Saudi Arabia, and United Arab Kmirnlo. (Trueial States!.

2. Includes state and local governmerii securities. mul securiiies of IJ.S.government agencies and corporations. Also includes issues of new debt securi-

ties sold abroad by U.S. corporations organized to finance direct investmentsabroad.

A66 International Statistics U August 1987

3.25 MARKI'TAIU.l' U.S. TREASURY BONDS AND NO'l'IiS Foreign TransactionsMillions of dollars

Country or area

1 i'stinuiH'ft UUitl2

2 1 orcign countries-1

1 Kuro ie-4 Be gmm-l .uxenibourg5 (iennany-6 Netherlands7 Sweden8 Switzerland-9 United Kingdom

10 Ot ier Western Lurope1 1 Haslet it Lllrope12 ( anada

1 ! Latin America anil Caribbean14 Venezuela15 Ot let 1 .alin Anlerka anil Caribbean16 Nelhet lands Antilles17 <\si;iIK Japan19 Ali ica20 All olher

21 Nonmonetary international and regional organizations"'"' Internationa23 1 alin American regional

M ) : M O24 l-'oreign countries-1

25 OH cial institutions26 Ol ier foreign-1

Oil-exporting countries27 Middle Last'28 At ica*1

1985 I'J86

1987

Jan. -Apr . Oct

Transactions, net

2'y,2(IK

28,768

4,303476

1,917269976773

1.8101.701

0188

4,315248

2,1161,711

19,91917,909

1 12308

442436

18

28 7688,115

20,631

1,5477

24,17.1

25,277

ld.851349

7,5311,283

132310

4 6482.598

0881

87K95

I.IM159

5,4664,048

541,255

1,1051,430

157

•"5.27714,36610,913

1473

4,585

5,186

9,481201

5,026558529

2,631189

1.30118

1.861

1,19210140H

1,0855,1)671,426

10333

599468

1 1

5,18610,5145,349

1,51620

..,<M2

2.717

1.0464

2,497112

6449141149

0210

21969

31426U)

45011

163

315165

s

2,7173,589

872

1771

1986

Nov.

Mirchases

-2,25V

301

-7275.1

700.1870

498315510

019

75139

6208152188

2482

1,9582,010

0

101133434

1,0141

Dec.

or sales (

mi

488

1,00175

48758

236428

1,0161,099

0297

97299628

2,0672,086

14198

1,4781,412

0

488295782

210

Jan.

) dur ing

-4.16 '

580

1,17659

581366229135

1,227236

3846

1,00611

445528922

766

280

1,016'1,070'

tl

58(11,498

918

7211

1987

I'eb Mar. Apr. ' '

iclioil'

'HI'

1,818

1,709211

1,11841

440473

57518

0403

29018

374682

1,2311,767'

34396

884'886'

0

1.818834'981'

9621

7,124

4,239

5,86515

2,1412123.14

1,641360

1,6.150

702

62102156

82,3092,388

1232

2,8852,835

I I

4,2395,8371,597

22617

-3,(1.16

1,451

53235

1,187-22Tft

6521,140

5.141

716

1414

180133

1 067- 2J29

15416

1,5841,347

0

1,4512.3663,817

-600

1. Kxtimated ollici;securities with an ormonthly transactionsnotes held by otlicial

2. Includes U.S. 'Idenominated in loreigi

idiginal mateportsnslituicasury n>

iiy of more than:ludes nonmarkelahof foreign countries

ites publicly issued

I year.le U.S.

able U.S. TreasuryData are based on

Treasury bonds and

}. Comprises Itahiain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, andUnited Arab Kmirates (Tiucia! States).

4. Comprises Algeria, Gabon, Libya, and Nigeria.

Interest and Exchange Rates A67

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKSPercent per annum

Country

AustriaBelgiumBrazil"anadaDenmark

Rale on

Per-cent

3.57.75

49.08.547.0

May 31. 1987

Montheffective

Jan. 1987May 1987Mar. m\May 1987Oct. 1983

Country

1' ranee1

Germany, Fed. Rep. of . . .ItalyJapanNetherlands

Rate on May 31, 1987

Per-cent

7.753.5

11 s2.54.5

Montheffective

Mar. 1987Mar. 1986Mar. 1987Feb. 1987Mar. 1986

Country

NorwaySwitzerlandUnited Kingdom-Venezuela

Kale on May 31, 1987

Per-cent

8.03.5

s!o

Montheffective

June 1983Jan. 1987

Oct. 1985

1. As of the end of rebruary 1981, Ihe rate is that at which the Hank of I-raneediscounts Treasury bills for 7 to 10 days.

2. Minimum lending rate suspenclecf as of Aug. 20, 1981.NOTF. Rates shown are mainly those at which the central bank either discounts

or makes advances against eligible commercial papev and/or government commer-cial banks or brokers. lo r countries with more than one rate applicable to suchdiscounts or advances, the rate shown is the one at which it is understood thecentral bank transacts the largest proportion of its credit operations.

3.27 FOREIGN SHORT-TERM INTEREST RATESPercent per annum, averages of daily figures

Country, or type

1 Eurodollars2 United Kingdom3 Canada4 Germany5 Switzerland

6 Netherlands7 France8 ililly9 Belgium

10 Japan

1984

10.759.91

11.295.964.35

6.0811.66I7.U811.416.32

1985

8.2712.169.645.404.92

6.299,91

14.«69.606.47

1986

f. 7010.879.184.584.19

5.567.68

12.608.044.96

W86

Nov.

5.9611.128.394.673.88

5.487.51

11.057.384.39

Dec.

6.2311.308.344.804.08

6.037.92

11.407.394.40

Jan.

6.1010.987.954.453.63

5.588.49

U.397.884.23

Feb.

6.1210.797.443.943.58

5.318.16

11.137.753.98

1987

Mar.

6.379 907.143 973.93

5.387.85

10.657.494.00

Apr .

6.739.727.623.853.65

5.317.87

10.037.213.92

May

7.258.79S.223.733.63

5.118.09

10.157.1.3.3.77

NOTK, Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate.

A68 International Statistics G August 1987

3.28 I 'OKlilCiN MXCHANCiH KATKS

Currency units per dollar

Corinti Wcuiiencv

1 Ausllalia/dollar1

2 Aiislria/sdiillinj!1 Uclgiuni/tiaiK-4 Bra/il/cni/eiro5 Canada/dollar6 China. I'.R/yuan7 Denmark/krone

8 I'mland/markka9 France/franc

10 (iermany/deutsche mark11 (iieece/drachma12 lloni: Konjj/ilollar1.1 India/rupee14 Ireland/pound'

IS llaly/liia16 Japan/yen17 Malaysia/nnggit18 Netherlands/pilUlerI1) New Zealand/dollal1

20 Norway/krone31 Porlugal/csLiltln

22 Sinyapore/dollai2.1 South Africa/rand1

24 South Korea/won2.1 Spain/peseta26 Sri Lanka/rupee27 Svycden/kruna28 Switzerland/franc29 Taiwan/dollar10 Iliailand/halit.11 Drilled Kingdom/point1

Ml Mo12 United Stales/dollar

1984

87.9:i720.00^17.749

1841.5O1.29H2.11(18

10.154

6.IKXI78 . 7 1 "2.8414

112.7.17.8188

11.148108.64

1/16.10237.45

2..14481.2081

.17.8178.1596

147.70

2.112569.534

807 91160 7H25.4288.27()h2.1500

19 6112.1,5X2

11.1.(id

118.19

1985

70,02620,67659,116

6205,101.36582.9414

1(1.598

6.19718.97992.9419

1.18.407.7911

12.112106.62

1908.902.18.47

2.48061.1184

49.7128.1911

172.07

2.200845.57

861.89169.9827.1878.60.112.4551

19.88927.1V.1

129.74

141.01

1986

67.09.115.26044.66211.0511.18961.46158.0914

1.07216.92162.1704

119.9.17.8017

12.597114 14

1491.16168.15

2 5X1(12,4484

52,4567,1984

14980

2,178241,952

884.61140.04279317.12721.7979

17,81726.114

146.77

112.22

1986

Dec.

65,9111,99641 18114,14I..1801.1.71147.5215

4.89806.52961.9880

140.1.17.79.11

11.149136.78

1.1 ""J.44162.01

2.19662.2470

11.3397.5294

148.61

2.190044.94

868.41114.4928.1126.90811.6647

16.(XII26.219

141.91

106.54

Jan.

66.0911.08718.61615.581 16011.73147.0191

4.64196.20071.8596

1.14.807,7698

13.029143,90

1317,17114.8!

2.17012.0978

11 6057.1731

142.90

2.151047.71)

862.81)129.5428.5186.61881 1616

15.1(1426.017

150.54

101.13

I c h

66 7712.8.1317 78918.081.13403.73146.8939

4.15166.07601.8239

131.887.7952

11.062141.9!

1297 74153.41

2.54182.0592

54.8117.0067

141.62

2.141047.97

857.38128.6228.6626.50161.540!

15.05625.9.13

152 80

99.46

1987

Mai.

68 1712.90118 02920.56

1.U943.:'!146.9166

4.51026 10911.8155

114.687.8017

12.924145.54

1101.90151.43

2.52302.0731

56 i l l6 9111

M l 48

2 141848,21

816,11128.8628 82!6.42021.1.191

34.68125.881

159.23

98.99

Apr.

71.1912 71915.16222.59

1.11813.73146.8388

4.42276.03321.8121

1.13.1027.8021

12 8224147.49

1292.%143.00

2.48612.0447

17.7116.7781

140.319

2.131049.15

841 (X)126.97128.9026.32101.4968

H.86321.691

162 99

97.09

May

71.4212.17437.091n.a.1,34113 73146 7333

4.3MI45 97481 7881

111.157.8049

12,666149.59

1290.80140.48

2.47592 0154

57.6396 6612

139 18

2 120249 87

812.11125 2828 9886,26061.4705

12 1.142.1.629

166 66

96,01

1. Value in U.S. cents.2, Index oi' weighted-average exchange value of U.S. dollar against the

currencies of 10 industrial counliies. The weight for each of the 10 countries is the1972--76 average world trade o\ thai country divided by the average workl Iratle ofall 10 countries combined. Series revised as of August 1978 Isee If m RAIKI SI RVI. Hut I.I-.IIN, vol. 64, August 1978, p. 7(M)).

}, Currency reform.N o i l . A v e r a g e s of certified noon buy ing ra tes in N e w York for cab le t r ans fe r s .Data in this lahle a l so a p p e a r in the B o a r d ' s ( i . 5 (405) r e l ea se . For a d d r e s s , see

inside from cover .

A69

Guide to Tabular Presentation,Statistical Releases, and Special Tables

GUIDE TO TABULAR PRESENTATION

Symbols and Abbreviations

c Corrected 0c Estimated n.a.p Preliminary n.e.c.r Revised (Notation appears on column heading when IPCs

about half of the figures in that column are changed.) RFJTs* Amounts insignificant in terms of the last decimal place RPs

shown in the table (for example, less than 500,000 SMSAswhen the smallest unit given is millions) . . . .

Calculated to be zeroNot availableNot elsewhere classifiedIndividuals, partnerships, and corporationsReal estate investment trustsRepurchase agreementsStandard metropolitan statistical areasCell not applicable

General Information

Minus signs are used to indicate (1) a decrease, (2) a negativefigure, or (3) an outflow.

"U.S. government securities" may include guaranteedissues of U.S. government agencies (the flow of funds figuresalso include not fully guaranteed issues) as well as direct

obligations of the Treasury. "State and local government"also includes municipalities, special districts, and other politi-cal subdivisions.

In some of the tables details do not add to totals because ofrounding,

STATISTICAL RELEASES

List Published Semiannually, with Latest Bulletin Reference

Anticipated schedule of release dates for periodic releases.Issue Page

June 1987 A89

SPECIAL TABLES

Published Irregularly, with Latest Bulletin Reference

Assets and liabilities of commercial banks, March 31, 1986 June 1987 A70Assets and liabilities of commercial banks, June 30, 1986 June 1987 A76Assets and liabilities of commercial banks, September 30, 1986 July 1987 A70Assets and liabilities of commercial banks, December 31, 1986 July 1987 A76Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1986 December 1986 A76Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1986 March 1987 A70Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1986 May 1987 A76Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1987 August 1987 A70Terms of lending at commercial banks, May 1986 July 1986 A70Terms of lending at commercial banks, August 1986 December 1986 A70Terms of lending at commercial banks, November 1986 February 1987 A70Terms of lending at commercial banks, February 1987 May 1987 A70

Special tables begin on next page.

A70 Special Tables D August 1987

4.30 A S S h T S A N D I.1AHII.ITIKS of U.S . Branches and Agencies of Foreign Hanks, March 31, 1W71

Millions of dollars

1

214

567

8

9

10I I

] 1

11

141516

17

18

19

2021

22

2.124

252627282930

.11321134

1.5161718y>4041

42

41

444546474X

4950

51

52

51

Item

Total assets'1

Claims on nonidalcd parties

Cash items in process of collection anil unposteddebits

Currency ami coin (U.S. and foreign)lialances with depository institutions in United States

U.S. branches and agencies of other foreign hanks(mdudiuy, their lHl;s)

Other depository institutions in United States(including their IHFs)

Halances with banks in foreign countries and withforeign cent nil bunks

Foreign branches of U.S. banksOther banks in foreign countries and foreign centra]

banks

Iota! st'ciiritifs imd loans

Total securities, book valueU.S. TreasuryObligations of U.S. government agencies and

corporationsOther bonds, notes, debentures and corloiate stock

(indiHlmy state and local senimies)

Federal funds sold and securities purchased underagreements to resell

U.S brunches and agencies of other foreign banks. . . -Commercial banks in United StatesOther

Total loans, grossLess; Unearned income on loansEquals: Luans, net

Toiul loans, i-roxs, hy categoryReal estate loansLoans to depository institutions

U.S. branches and agencies of other foreign hanks .Other commercial banks in United Slates

Other depository institutions in United States(including IHFs)

Hunks iti foreign countriesForeign branches of U.S, hanks

Other financial institutions

Commercial and industrial loans

Non-U.S. addressees (domicile)Acceptances of other banks

U.S. banksForeign hanks ,

Loans to foreign governments ami ollicial institutions(including foreign central hanks)

Loans for purchasing or currying securities(secured and unsecured)

All other loans

All other assetsCustomers1 liabilily on acceptances outstanding

U.S. addressees (domicile)Non-U.S. addressees (domicile)

Othei assets including other claims on nonreiatedpai lies

Net due from related depository institutions''Net due trout head oiViee and other related depository

institutions''Net iluc from establishing entity, head ollices,

and other related depository institutions^

Total lia hi lilies4

Liabilities lo nonrelaieti patties

All s

Totalincluding

IHFs

.195,893

167.441ij | (-,(, |

40628

50.516

41,784

6,7.12

!8,W2,517

16 079MI4

226,27(1

10,4287,519

2,185

20,524

17,1171 1,4251.12.12,18')

196,062220

195,842

«,15261,48115 *>7232!?12

2,761)

1 %28,014

1,07126 9415/>87

9.1,83371,46922,164

1,022431592

17,169

4.2IX)2,317

12,17121,48914,6816,806

10,88428.452

28,452

u.a.

395,89.1

.145.562

ales2

Illlsonly1

195,277

167,05074 891

0n.ii.

17,227

15,126

2,101

(7,6642,437

15,228

86,624

8,191n.a.

n.a.

8.191

2,1(171,160

47900

78, W574

78,431

8944,22317 94816,901

1 .(147

11526,15')

99721 161" ' '920

IX,19577

is,nit222

21

14,697

104255

1,42')it.a.n.;i.n.a.

1,42928,227

n.a.

2X.227

195,277

17(1.151

New

Totalincluding

mis

295,(129

276,42(176,589

.18021

41,447

15,596

5,851

32,7882,392

.10,3961 95"1

159,498

24,6177,155

2,259

15,204

15.70710,24.13,2122.251

115.014153

114,XXI

3,92146,117

22!4O82,188

11921,201

86420,140"Old

60,14141 9751H,16(I

854289564

14,720

1,65(,1,895

24,62615,87110,0275.845

8,75518,609

18,609

n.ii.

295,029

267,481

York

IMl-'sonly '

154,394

I31.71h62,210

0n.a.

10,229

28,267

1.961

11.9812,125

29,657

(>5,.159

6,112n.a.

11.a.

6.112

1,64478(147

817

59.29649

59.247

65.10,22610 5269/.I5

910

69I 'Mil l

79018 841

8.16

I5.33X49

15.28')17

••}

16

12,563

72179

2,50.1n.a.n.a.n.a.

2,50122,678

11 a.

22.67K

154,394

115,161

Califoni

Tolalincluding

Illls

60,964

54,4718,791

52

5.601

5,316

288

3,11842

3,09641

.18,.1.1.1

1,941165

120

.1,657

Xtttt70245s i

14,44856

34,192

2,14712,(1377 5417,'.1O8

237

144 478

1834 295

'93(1

17.25214.6442.608

126124

2

1,391

46696

6,5475,2144,186

827

1.3336.492

6,492

n.a.

611,964

54,089

I H I sonly1

27,(170

24,2168 118

0n.a.5,003

4,931

70

3,1 IS.16

1,079

15,189

1,777n.a.

u.a.

1.7/7

234229

1)5

11.43625

11,111

249,7925,3995,28(1

120

04.392

1824.210

19

2.1X326

2,157000

1.345

055

675u.a.n.a.n.a.

6752,855

n.a.

2.X55

27,0711

.'1,776

Illinois

Totalincluding

Illis

22,008

22,0085 025

s2

2.763

2,385

378

2,19567

2,12959

15,906

874101

0

771

129285

1925

15,037s

15,032

5491,8712,6242.V/9

46

151,232

25I ^07f.000

9.03K8.605

43317(1

16

343

62157

7482312 1 1

2I>

5170

0

n.a.

22,008

1 1,116

m i sonly1

8,4.10

8,24')1 919

(n.a.1,746

1,689

57

2,17365

2,108

3,980

209n.a.

n.a.

209

13(116

(20

3,771(

1.771

t1,0751 8*J1^881

17

01,177

251,152

2K

3520

352505

281

120

214n.a.n.a.n.a.

214182

n.a.

182

8,4.1(1

6,219

U.S. Branches and Agencies A71

4.30 ContinuedMillions of dollars

Item

54 Total deposits and credit balances55 Individuals, partnerships, and corporations56 U.S. addressees (domicile)57 Non-U.S. addressees (domicile)58 Commercial banks in United States (including IHFsl .59 U.S. branches and agencies of other foreign bunks .60 Other commercial bank.s in Uniletl .States61 Banks in foreign countries62 Foreign branches of U.S. banks63 Other banks in foreign countries64 Foreign governments and otlicial institutions

(including foreign central hanks)65 All other deposits and credit balances66 Certified and ollicial checks

67 Transaction accounts and credit balances(excluding IHFs)

68 Individuals, partnerships, and corporations69 U.S. addressees (domicile)70 Non-U,S. addressees (domicile)71 Commercial banks in United Slates (including IBFs) .72 U.S. branches and agencies of other foreign banks .73 Other commercial banks in United States74 Hanks in foreign countries75 Foreign branches of U.S. banks76 Other banks in foreign countries77 I'oreign governments and otlicial institutions

(including foreign central banks)7H All other deposits and credit balances79 C'ertilied and official checks

80 Demand deposits (included in transaction accountsand credit balances)

HI Individuals, partnerships, and corporations82 U.S. addressees (domicile)83 Non-U.S. addressees (domicile)84 Commercial banks in United States (including Mil's) .85 U.S. branches and agencies of other foreign hanks .86 Other commercial hanks in United States8/ Banks in foreign countries88 Foreign branches of U.S. banks89 Other banks in foreign countries90 I'oreign governments and ollicial institutions

(including foreign central banks)91 All other deposits and credit balances92 Certified and ollicial checks

93 Non-transaction accounts (including MMOAs,excluding IBFs)

94 Individuals, partnerships, and corporations95 U.S. addressees (domicile)96 Non-U.S. addressees (domicile)97 Commercial banks in United States (including IHFs) .98 U.S. blanches and agencies of other foreign bank.s .99 Other commercial hanks in United States

100 Banks in foreign counlrie.s101 Foreign branches of U.S. banks102 Other banks in foreign countries103 Foreign governments and ollicial institutions

(including foreign central banks)104 All other deposits and credit balances

105 IRF deposit liabilities106 Individuals, partnerships, and corporations107 U.S. addressees (domicile)108 Non-U.S. addressees (domicile)109 Commercial banks in United States (including IBFs) .110 U.S. branches and agencies of other foreign batiks .111 Other commercial banks in United States112 Banks in foreign countries113 Foreign branches of U.S. banks114 Other banks in foreign countries115 Foreign governments and otlicial institutions

(including foreign central banks)116 All other deposits and credit balances

All s

lotaexcluding

IBFs

54,91242,77013,7009,0708,5874,3554,232

876224652

770318591

5,9883,6702,459

211'391

82310918

12906

28929

591

4,8133,1682,0921,077

1555

149MO

1619

22514

591

48,92339.10031,2407,8608,1964,2743,922

958212746

481188

n 1.

ates-1

IUI-'sonly1

134,69513,496

46613,03047 23540,7206 515

68,4607,443

61,018

5,019484

n 1.

n iV.

n l

134,69513,496

46613,03047,23540,7206,515

68,4607.443

61,018

5,019484

New

Iotaexcluding

IBFs

46,61535,37729,0746,3037,8923,7824,110

815224592

746291494

5 262,9842,0.18

94638281

301877

12865

28109

494

4,1362,6341,781

853146

S14158(1

1579

21765

494

41,48932,39327,036

5,1577,510.3,7001,809

918212726

465183

n a.

York

IBFsonly'

119,21610,312

4619,851

40,57914,7805,799

61,0766,206

56,870

4,765483

n a.

n a.

n i .

119,21610,312

4619,851

40,57934,780

5,79963,0766,206

56,870

4,765483

California

Iotaexcluding

mi's

,645501437065

465

40140

14

174

63

2101369046

504404

11

63

133613011404303

10

63

1,4341,366

1471,019

415

36100

10

152

n a.

IHFsonly'

8,661341

0341

4,6434,171

4701,627

6712,956

500

1

n a.

n 1.

n 1.

8,661341

0141

4,6434,173

4701,627

6712,956

500

Illinois

lotaexcluding

IBFs

2,8172,177

99718162155169

103

32

l !

215218214

1000202

11

II

225207204

3000202

31

II

2,5821,9601,782

17762055169

101

01

n a.

IBFsonly'

2,124104

0104217105112911383529

91(1

n l .

n 1.

n a.

2,124104

0104

1,2171,105

112911181529

910

l;or notes see end of table.

A72 Special Tables LI August 1987

4.30 ASSKTS A N D I . IAHIL1TIHS of U .S . Brunches ;iml Agencies of Foreign Hiinks, March 31 , I ' W — C o n t i n u e d

Millions nl ilolhtrs

120121

I l l

1 2 4

127128

12')HI)

I 121 13

! 15

1361 17

I 19140

Federal funds purchased and securities sokl underagreements ID repurchase

U.S. branches and agencies of other foreign hanksOther commercial lianks in United StatesOther

Other borrowed moneyOwed to nonrelated commercial banks in United Status

( i n c l u d i n g I l l l - s )

d US lli f l d US b kOwOwed to U.S. branches -.mil agencies of

nonrclated foreign banksOwed to iionrelated banks in foreign cotmtiies

Owed lo foreign branches of nonielated U.S. banksOuvd lo foreign ultices of nonrclatecl foreign banks

Owed lo others

eptAll other liabilities

Hianch or agency liability •ami outstanding

Other liabilities to nonrelated parlies

Net due lo related deposilory institutions''Net due to head ollice and other related

deposilory institutions''Net due lo establishing entity, head ottice, and other

related depository institutions1

Mi MO

Non-interest heming balances with commercial hanksin United States

1 lolding of commercial paper mdudud in tut.il loans . . . .Holding of own acceptances included in commercial

and industrial loansCommercial and industrial loans with remaining matiui ly

of one year or lessPredetermined interest ratesHonting interest rales

Commercial and industrial loans with remaining matmityof im>iv than one ycut'

Predetermined interest raleslloating interest rates

lo la lincluding

m i s

41 .MSI4,')241(1 5M>IS.W.2

1(1,78716, (.60

14,142S.227

2,2.176.19

S6,17014,12722,243

17,46.i12,73124,710

mi sonly1

2.R2S1,496

2201,109

2'),H7fi

I2..OT2.51?

10.044IV7142,179

13,.1541,5X5

2,755

2,755

2S,126

Totalincluding

I B I S

31.42(11(1,(1347,3X5

14 (KIO44,175

3(1,33615,691

14,6457,704

X226.K826.135

26,055

19,25 16,8(12

27,S4X

27.54X

2,0114S.1

2,711

35,0X020 (11515,045

25,2617 906

17.3V.

IHIsonly'

1.4H2649

K5748

12.388

3,699931

2.76H7 , l70

7476,4231,52(1

2,075

2,075

19.233

19,233

Totalincludinj;

I HIS

7,X8<)1,9772,2561,65 s

29,012

21 5927,592

13,999

s rn1,2764,5011,64.1

h.XXi

5,908975

6,875

6.X75

10,7007 56(13,140

6,5522.6723,88(1

only1

1,194711125338

13.474

7,9671,352

6,6155,4421,2114,231

65

446

446

1,294

I ota!including

M i l s

1,45S714620124

6,071

2,7041.037

1,6672,991

316i 675

377

646

218408

8,692

8,692

4991

123

6,1 194,1591,960

2.9191,4531,466

1111 s{inly1

49320

173.652

698119

5792.954

3 Hi2,638

(I

194

ii.a.194

U.S. Branches and Agencies A73

4.30 ContinuedMillions of dollars

Item

144 Components of total nontransaction accounts.

lAontiimsuctiotuu' luxouilts, including IBl-s145 Time CD.s in denominations of $100,OCX) or more146 Other time deposits in denominations of $100.(H)0

or more147 Time CDs in denominations of $100,000 or more

with remaining inaturily ol' more than12 months

148 Market value of securities held150 immediately available funds with a maturity greater than

one day included in other borrowed money

150 Number of reports filed'1

All s

Totalexcluding

IHFs

57 87036,62'J

7.355

13,886

ites-

misonly1

tn.a.

All states-

Totalincluding

IHI-s

29,353

52,159

48K

IHFsonly'

8,171

n.a.

New York

Totalexcluding

1IU\

50,25430,88(1

6,870

12.504

III I sonly'

tn.a.

i

New York

totalincluding

IBl-'s

23 Ml

28,929

221

misonly'

6,227

n.a.

Cali/l

Totalexcluding

IBl-'s

1,4071.058

185

164

ni;t

IHI sonly'

1n.a.

California

Totalincluding

IHI s

3,611

20,446

122

misonly'

1,641

n.a.

Illinois

Totalexcluding

IBl-'s

3,0402,120

230

689

1151 sonly'

tn.a.

1Illinois

Totalincluding

IHFs

873

1,794

47

misonly1

209

n.a.

!. Data iue aggregates of categories reported on the quarterly form ITIHC (M)2,"Report of Assets and Liabilities of U.S. Branches and Agencies of ForeignHanks." Details may not add to totals because of rounding. This form was firstused for reporting data as of June 30, 1980, and was revised as of December 31,1985. From November 1972 through May 1980, U.S. branches and agencies offoreign banks had filed a monthly 1:R KHfm report. Aggregate data from ihut reportwere available through the Federal Reserve statistical release O.l t, lasi issued onJuly 10, 1980. l)ata in this table ami in the G. 11 tables are not .strictly comparablebecause of dill'erences iti reporting panels and in definitions of balance sheetitems.

2. Includes the District of Columbia.3. liftectivc December 1981, the Federal Reserve Board amended Regulations

D and Q to permit banking offices located in the United Stales to operateInternational Hanking Facilities ((HI-s). As of (Tcccmhcr 31, 1985> ilnui fin Wl\Hie reported in a separate column. These data are either included in or excludedfrom the total columns as indicated in the headings. The notation "n.a ." indicates

that no 1BF data are reported for that ilem, either because the item is not aneligible IBF" asset orIBFs. From Decembeiall applicable items re

4. Total assets and IU> related hanking insifootnote 5), On the foi

iabiliiy or because that level of detail is not reported for1981 through September 1985, IBF data were included in

•orted.ota! liabilities nclude net balances, if any, due from or dueitutkuis in the United States and in foreign countries (seciner monthly branch and agency report, available through

the (i. 11 statistical release, t,'/'o.v.v balances were included in total assets and totalliabilities. Therefore, total asset and total liability figures in (his table are notcomparable to those in the (i . l l tables.

5. ••Related banking institutions" includes the foreign head ollice and otherU.S. and foreign branches and agencies of the bank, the bank's parent holdingcompany, and majority-owned hanking subsidiaries of the bank and of its parentholding company (including subsktUirics owm-d both directly and indirectly).

6. In some cases two or more ollices of a foreign bank within the samemetropolitan area file a consolidated report.

A74

Federal Reserve Board of GovernorsPAUL A. VOI.CKHR, ChairmanMANUKI. H. JOHNSON, Vice Chairman

MARTHA R. SUGI.RWAYNH D. ANC.I'I.I.

Orricr or BOARD MEMHERS

JOSI-TII K. COYNL, Assistant to the HoardDONAI I) .1. WINN, Assistant to the HoardNOKMAND R.V. BI.RNARD, Special Assistant to the HoardI.YNN SMITH [OX. Special Assistant to (lie HoardBon S. MOOKL, Special Assistant to the Hoard

LECAI, DIVISION

M I C H A L I B K A D I i l l i>, (ieneral CounselJ. VllMiii. M A T T [ N < ; I . Y , J R . , Deputy (ieneral CounselRICHARD M. ASH ION, Associate (ieneral CounselOLIVTU IRI.I AND. Associate (ieneral CounselRICKI R. TK;LKI, Assistant (ieneral CounselMAKYFLLLN A. HKOWN, Assistant to the (ieneral Counsel

On ICE or THE SECRETARY

WIITIAM W. Wn i s , SecretaryBARHARA R. LOWRI.Y, Associate SecretaryJAMIS MCATI:!;, Associate Secretary

DIVISION or CONSUMERAND COMMUNITY AEEAIRS

Gun i n n 1.. GAKWOOD, DirectorGI.LNN L. LONLY, Assistant DirectorFi.i I:N MAI.AND, Assistant DirectorDoi OKLS S. SMITH, Assistant Director

DIVISION or RESEARCH AND STATISTICS

JAMLS I,. KICHLINI:, Staff' DirectorliowARi) C. KTTIN, Deputy DirectorDONAI.i) I.. KOIIN, Deputy Director

(Monetary Policy and I'inaitcial Markets)MK HAI.1 J. I'RIXI., Deputy DirectorJARHD J. HNZI.I:K, Associate DirectorDAVID K. I.INDSI.Y, Associate DirectorKI.HANOR J. STOCKWIXI., Associate DirectorMARTHA HI-.TIIKA, Deputy Associate DirectorTHOMAS D. SIMPSON, Deputy Associate DirectorI.AWRKNCI: SI.IIMAN, Deputy Associate DirectorVvwv. A. TINSI.KY, Deputy Associate DirectorSUSAN J. l.r.pi'i R, Assistant DirectorRICHARD I). PORI I:R, Assistant DirectorMARTHA S. SCANI.ON, Assistant DirectorJOYCE K. /.ICKI.MR, Assistant DirectorI,I;VON H. UARAHKDIAN, Assistant Director

(Administration)

DIVISION or INTERNATIONAL FINANCE

HDWIN M. TRUMAN, Staff DirectorLARRY J. PROMISLL, Senior Associate Director(JIARI.HS J. Sir-GMAN, Senior Associate DirectorDAVID H. HOWARD, Deputy Associate DirectorROHKRX F. CIF.MMII.I., Staff AdviserDONALD li. ADAMS, Assistant DirectorPI:TI:R HOOPI.R III, Assistant DirectorKARI:N H. JOHNSON, Assistant DirectorRAI.IMI W. SMITH, JR. , Assistant Director

DIVISION or BANKINGSVI'ERVISION AND REGULATION

WII.I.IAM TAYLOR, Staj} DirectorFRANKLIN D. DRI.YI.R, Deputy Director1

DON H. KI.INI-, Associate DirectorFKLDKRICK M. SIRUHI.L. Associate DirectorWILLIAM A. RYHACK, Deputy Associate DirectorSn.i'HLN C. SciiiiMKRiNCi, Deputy Associate DirectorRICHARD SI'H.LKNKOTHLN, Deputy Associate DirectorIlLKnr.RT A. BILRN, Assistant DirectorJoi: M. CI.LAVLR, Assistant DirectorANTHONY CORNYN, Assistant DirectorJAMLS I. CJARNCR, Assistant DirectorJAMKS D. (ioinziNCi.R, Assistant DirectorMICHAEL Ci. MARTINSON, Assistant DirectorROHLRT S. 1'I.OTKIN, Assistant DirectorSIDNLY M. SUSSAN, Assistant DirectorLAURA M. HOMLR, Securities Credit Officer

I. On loan from the I'cderal Reserve Hank of Chicago,

A75

and Official StaffH. ROBERT HELLEREDWARD W. KELLEY, JR.

OFFICE OFSTAFF DIRECTOR FOR MANAGEMENT

S. DAVID FROST, Staff' DirectorEDWARD T. MULRENIN, Assistant Staff DirectorPORTIA W. THOMPSON, Equal Employment Opportunity

Programs Officer

DIVISION OF PERSONNEL

DAVID L. SHANNON, DirectorJOHN R. WEIS, Assistant DirectorCHARLES W. WOOD, Assistant Director

OFFICE OF THE CONTROLLER

GEORGE E. LIVINGSTON, ControllerBRENT L. BOWEN, Assistant Controller

OFFICE OF STAFF DIRECTOR FORFEDERAL RESERVE BANK ACTIVITIES

THEODORE E. ALLISON, Staff Director

DIVISION OF FEDERAL RESERVEBANK OPERATIONS

CLYDE H. FARNSWORTH, JR. , DirectorELLIOTT C. M C E N T E E , Associate DirectorDAVID L. ROBINSON, Associate DirectorC. WILLIAM SCHLEICHER, JR., Associate DirectorCHARLES W. BENNETT, Assistant DirectorJACK DENNIS, JR., Assistant DirectorEARL G. HAMILTON, Assistant DirectorJOHN H. PARRISH, Assistant DirectorFLORENCE M. YOUNG, Adviser

DIVISION OF SUPPORT SERVICES

ROBERT E. FRAZIER, DirectorGEORGE M. LOPEZ, Assistant DirectorDAVID L. WILLIAMS, Assistant Director

OFFICE OF THE EXECUTIVE DIRECTOR FORINFORMATION RESOURCES MANAGEMENT

ALLEN E. BEUTEL, Executive DirectorSTEPHEN R. MALPHRUS, Associate Director

DIVISION OF HARDWARE AND SOFTWARESYSTEMS

BRUCE M. BEARDSLEY, DirectorTHOMAS C. JUDD, Assistant DirectorELIZABETH B. RIGGS, Assistant DirectorROBERT J. ZEMF.L, Assistant Director

DIVISION OF APPLICATIONS DEVELOPMENT ANDSTATISTICAL SERVICES

WILLIAM R. JONES, DirectorDAY W. RADEBAUOH, Assistant DirectorRICHARD C. STEVENS, Assistant DirectorPATRICIA A. WELCH, Assistant Director

A76 federal Reserve Bulletin LI August 1987

Federal Open Market CommitteeI-'EDERAL Oi'HN MARKET COMMITTEE

MEMIIERSPAUL A. VOLCKLR, Chairman

WAYNI I). ANC;I;U.

HOWARD (i. BOIIINLR o i l l . R T I I . B o Y K I N

II. ROIUKI HLLI !.R

MANUI.I. H. JOHNSONSII.AS Ki I:HN

li. GERALD CORRIGAN, Vice Chairman

KDWARD W. KI-:I.I.I-:Y, JK.MARTHA R. SKGF.RGARY H. STLRN

ROIIIKI I1. BI.AC KTHOMAS M. TJMI.CN

A E TERN A TE MEMHERS

ROMKT V. l'OKRi;STA[ ROHIRI T. PARRY

SlAEE

DONALD I.. KOIIN, Secretary and Staff AdviserNOKMAND R.V. BKRNARD, Assistant SecretaryROSI.MARY R. LONI'.Y, Deputy Assistant SecretaryM u ' i i A l - i . H R A D I I I . I I » , Ceneral CounselJAMI-:S H. OI.IMAN, Deputy (ieneral CounselJ A M I S 1.. K l e i n I N I . . EconomistliuwiN M. TRUMAN, Economist (International)Pi:n.R l'Ousi.K, Associate Economist

RICHARD W. I.ANCI, Associate EconomistDAVID li. LINDSKY, Associate EconomistMICHAF.I. J. I 'KI.II. , Associate EconomistARTHUR J. ROI.NICK, Associate EconomistHARVI-:Y ROSKNHI.UM, Associate EconomistKAKI. A. SCHI.1,1), Associate EconomistCHARI.I:S J. SllXiMAN, Associate EconomistTHOMAS I). SIMPSON, Associate Economist

Pi II:R I). STI-;RNI.II;HT, Manager for Domestic Operations, System Open Market AccountSAM Y. CROSS, Manager for Foreign Operations, System Open Market Account

FEDERAL ADVISORY COUNCIL

J O H N Ci. M K D I . I N J R . , ('residentJ U I . H N 1,. M C C A I I , Vice President

J O H N T. M K I I I . I . I C U D D Y , I ) I : W A I . I 1-1. A N K I : N Y , J R . , A N D !•'. 1'iiii.i.ips C J I I . I N I : R , Directors

J O H N I'. I .AWAKI- : , J-irst DistrictJ O H N !•'. M C C J M . I . I C U D D Y , Second DistrictS A M U I . I , A. McC'ui. i .oiKiii , Third DistrictJ U I . I H N I.. M( C.'AI.I., I-oiirth DistrictJ O H N ( J . M I . D I . I N , J R . , i'ifth DistrictBr.NNi'.rr A. B R O W N , Sixth District

C H A R M S T. I M S H I R , III, Seventh DistrictD O N A L D N. B R A N D I N , Kighth I5istriclD I - . W A I . T H. A N K F . N Y , J R . , Ninth DistrictI1'. P H I L L I P S O I I . T N K K , Tenth DistrictG I . R A L D W. I ' R O N T F R I I O U S I ; , lileveiitli DistrictJ O H N D. M A N G I . L S , Twelfth District

H l R H l R I V . P l U K H N O W , Sl-.CRI-VI AUY

WILLIAM .1. KORSVIK, ASSOCIAII: SF.CRF;TARY

A77

and Advisory CouncilsCONSUMER ADVISORY COUNCIL

EDWARD N. LANGE, Seattle, Washington, ChairmanSTEVEN W. HAMM, Columbia, South Carolina, Vice Chairman

EDWIN B. BROOKS, JR., Richmond, VirginiaJONATHAN A. BROWN, Washington, D.C.JUDITH N. BROWN, Edina, MinnesotaMICHAEL S. CASSIDV, New York, New YorkTHERESA FAITH CUMMINGS, Springfield, IllinoisRICHARD B. DOBY, Denver, ColoradoRICHARD H. FINK, Washington, D.C.NEIL J. FOGARTV, Jersey City, New JerseySTEPHEN GARDNER, Dallas, TexasKENNETH A. HALL, Jackson, MississippiELENA G. HANGGI, Little Rock, ArkansasROBERT J. HOBBS, Boston, MassachusettsRAMON E. JOHNSON, Salt Lake City, UtahROBERT W. JOHNSON, West Lafayette, Indiana

JOHN M. KOLESAR, Cleveland, OhioALAN B. LERNER, Dallas, TexasFRED S. MCCHESNEY, Chicago, IllinoisRICHARD L. D. MORSE, Manhattan, KansasHELEN E. NELSON, Mill Valley, CaliforniaSANDRA R. PARKER, Richmond, VirginiaJOSEPH L, PERKOWSKI, Centerville, MinnesotaBRENDA L. SCHNEIDER, Detroit, MichiganJANE SHULL, Philadelphia, PennsylvaniaTED L. SPURLOCK, Dallas, TexasMEL R. STILLER, Boston, MassachusettsCHRISTOPHER J. SUMNER, Salt Lake City, UtahEDWARD J. WILLIAMS, Chicago, IllinoisMICHAEL ZOROYA, St. Louis, Missouri

THRIFT INSTITUTIONS ADVISORY COUNCIL

MICHAEL R. WISE, Denver, Colorado, PresidentJAMIE J. JACKSON, Houston, Texas, Vice President

GERALD M. CZARNECKI, Mobile, AlabamaJOHN C. DICUS, Topeka, KansasBETTY GREGG, Phoenix, ArizonaTHOMAS A. KINST, Hoffman Estates, IllinoisRAY MARTIN, LOS Angeles, California

DONALD F. MCCORMICK, Livingston, New JerseyJANET M. PAVLISKA, Arlington, MassachusettsHERSCHEL ROSENTHAL, Miami, FloridaWILLIAM G. SCHUETT, Milwaukee, WisconsinGARY L. SIRMON, Walla Walla, Washington

A78

Federal Reserve Board Publications

Copies are available from I'UBi ,l('A'l IONS SKRVICF.S,Mail Stop 138, Hoard of Governors of the Federal ReserveSystem, Washington, D.C. 20551. When a charge is indicat-ed, payment should accompany request and be made to theHoard ofdovernors of the lederal Reserve System. Paymentfrom foreign residents should be drawn on a U.S. bank.Stamps and coupons are not accepted.

'I'm. FLDI.RAL RISLRVI Sysn.M—PUKPOSLS AND FUNC-I IONS. 1984. 120 pp.

A N N U M RI PORI .

ANNUAL RLPORT: BUDGLT RI.VII w, 1986—87.li.nrnAi RLSIRVI Huu T U N . Monthly. $20.00 per year or

$2.00 each in the United States, its possessions, Canada,and Mexico; 10 or more of same issue to one address,$18.00 per year or $1.75 each. Flsewhere, S24.00 peryear or $2.50 each.

BANKING AND MONI.IARY STATISTICS. 1914-1941. (Reprintof Part I only) 1976. 682 pp. $5.00.

BANKING AND MONI.IAKY STATISTICS. 1941-1970. 1976.

1,168 pp. $15.00.ANNUAL STATLSTICAI DIGLST

1974-78. 1980. 305 pp. $10.00 per copy.1981. 1982. 239 pp. $ 6.50 per copy.1982. 1983. 266 pp. % 7.50 per copy.1983. 1984. 264 pp. $1 1.50 per copy.1984. 1985. 254 pp. $12.50 per copy.1985. 1986. 231 pp. $15.00 per copy.

HISIOKK AI ( I I A K I HOOK. Issued annually in Sept. $1.25each in the United States, its possessions, Canada, andMexico; 10 or more 1<> one address, .$1.00 each. Hl.se-where, $1.50 each.

Si l i t LID INTLRLSI AND F.XCHANGI; RAITS—WLLKI Y S I -RIIS OI CHARTS. Weekly. $21.00 per year or $.50 each inthe United States, its possessions, Canada, and Mexico;10 or more of same issue to one address, $19.50 per yearor $.45 each. Flsewhere, $26.00 per year or $.60 each.

Tin. l i DI.RAI Ri SIKVI ACT, and other statutory provisionsaffecting the Federal Reserve System, as amendedthrough April 20, 1983, with Supplements coveringamendments through August 1986. 576 pp. $7.00.

Kl.Gi : l AI IONS OI 1111 BOAKD OI CjOVl.RNORS ()!•' 1111. F'r.D-

I-RAI. Rl.SLRVL S Y S T L M .

ANNUAI PLKCINIAGI. RAIL: TAIII.LS (Truth in Lending—Regulation Z) Vol. I (Regular Transactions). 1969. 100pp. Vol. II (Irregular Transactions). 1969. I 16 pp. Kadivolume $2.25; 10 or more of same volume to oneaddress, $2.00 each.

Fl.DLKAL Rl.SLRVL M L A S U R L S OI CAPACITY AND CAPACITYUTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to oneaddress, $1.50 each.

I'm BANK HOLDING COMPANY MOVI.MI.NT TO 1978; ACOMPLNDUJM. 1978, 289 pp. $2.50 each; 10 or more toone address, $2.25 each.

INTRODUCTION TO FLOW OI FUNDS. 1980. 68 pp. $1.50 each;

10 or more to one address, $1.25 each.1'unLic POLICY AND CAPITAL FORMATION. 1981. 326 pp.

$13.50 each.FLDLUAI. RI.SLKVL RLGULATORY SLRVK L. Looseleaf; updat-

ed at least monthly. (Requests must be prepaid.)Consumer and Community Affairs Handbook. $75.00 per

year.Monetary Policy and Reserve Requirements Handbook.

$75.00 per year.Securities Credit Transactions Handbook. $75.00 per year,lederal Reserve Regulatory Service. 3 vols. (Contains all

three Handbooks plus substantial additional material.)$200.00 per year.

Rates for subscribers outside the United States are asfollows and include additional air mail costs:

Federal Reserve Regulatory Service, $250.00 per year.Kach Handbook, $90.00 per year.

' f i l l : U . S . HCONOMY IN AN IN IT RDLPLNDIiNT WOKI.D: AMui.iicouNTRY MODLL, May 1984. 590pp. $14.50each.

WL.LCOML 1O TIIL I'LDLRAL RL.SLKVI..PRO< LSSING AN APPLICATION THROUGH TIIL FLDLRAL RI -

SLKVI. SYSTLM. August 1985. 30 pp.WRI i ING IN S i YI.I: AT i in. FLDI.RAL RivSLRVL. August 1984.

93 pp. $2.50 each.INDUSTRIAL PRODUCTION—1986 FDITION. December 1986.

440 pp. $9.00 each.FINANCIAL FUTURICS AND OPTIONS IN TIIL U.S. KCONOMY.

December 1986. 264 pp. $10.00 each.

CONSUMER EDUCATION V AMPULE ISShort pamphlets suitable for classroom use. Multiple copiesare available without charge.

Consumer Handbook on Adjustable Rate MortgagesConsumer Handbook to Credit Protection LawsFair Credit BillingFederal Reserve GlossaryA Guide to Business Credit and the l'.qual Credit Opportunity

ActGuide to Federal Reserve RegulationsHow to File A Consumer Credit ComplaintIf You Borrow To Buy StockIf You Use A Credit CardSeries on the Structure oj the i'ederal Reserve System

The Board of Governors ol the Federal Reserve SystemThe Federal Open Market CommitteeFederal Reserve Bank Board of DirectorsI'ederal Reserve BanksOrganization and Advisory Committees

What Truth in Lending Means to You

A79

PAMPHLETS FOR FINANCIAL INSTITUTIONSShort pamphlets on regulatory compliance, primarily suit-able for banks, bank holding companies and creditors. 133.

Limit of 50 copies134.

The Board of Directors' Opportunities in Community Rein-vestment 135.

The Board of Directors' Role in Consumer Law ComplianceCombined Construction/Permanent Loan Disclosure and

Regulation ZCommunity Development Corporations ami the Federal Re-

serve 136.Construction Loan Disclosures and Regulation ZFinance Charges Under Regulation ZHow to Determine the Credit Needs of Your Community 137.Regulation Z: The Right of RescissionThe Right to Financial Privacy ActSignature Rules in Community Property States: Regulation BSignature Rules: Regulation B 138.Timing Requirements for Adverse Action Notices: Regula-

tion BWhat An Adverse Action Notice Must Contain: Regulation ISUnderstanding Prepaid Finance Charges: Regulation Z 139.

140.STAFF STUDIES- Summaries Only Printed in the

BulletinStudies and papers on economic and financial subjects that 141.are of general interest. Requests to obtain single copies ofthe full text or to be added to the mailing list for the seriesmay be sent to Publications Services. 142.

Staff Studies 115-125 are out of print. 143.

114. Mui.riHANK HOLDING COMPANIES: RECENT EVI-DENCE ON COMPETITION AND PERFORMANCE IN 144.BANKING MARKETS, by Timothy J. Curry and John T.Rose. Jan. 1982. 9 pp.

126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR-KF.T INTERVENTION, by Donald B. Adams and DaleW. Henderson. August 1983. 5 pp. Out of print. 145.

127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER-VENTION: JANUARY-MARCH 1975, by Margaret L.Greene. August 1984. 16 pp. Out of print.

128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 146.VENTION: SEPTEMBER 1977-Dt.CEMHE.R 1979, by Mar-garet L. Greene. October 1984. 40 pp. Out of print.

129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 147.VFINTION: OCTOBER 1980-OcroBF.R 1981, by MargaretL. Greene. August 1984. 36 pp.

130. EFFECTS OF EXCHANGE RAPE VARIABILITY ON IN- 148.TERNATIONAL TRADE AND OTHER ECONOMIC: VARIA-BLES: A REVIEW OF THE LITERATURE, by Victoria S.Farrell with Dean A. DeRosa and T. Ashby McCown.January 1984. Out of print. 149.

131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLI AR-DEUTSCHE MARK INTERVENTION, by Laurence R.Jacobson. October 1983. 8 pp. 150.

132. TIME-SERIES STUDIES OF H I E RELATIONSHIP BE-TWEEN EXCHANGE RATES AND INTERVENTION: A

REVIEW OF THE TECHNIQUES AND LITERATURE, byKenneth Rogoff. October 1983. 15 pp.RELATIONSHIPS AMONG EXCHANGE RATES, INTER-VENTION, AND INTEREST RAFFS: AN EMPIRICAL IN-VESTIGATION, by Bonnie E. Loopesko. November1983. Out of print.SMALL EMPIRICAL MODELS OF EXCHANGE MARKETINTERVENTION: A REVIEW OF THE LITERATURE, byRalph W. Tryon. October 1983. 14 pp. Out of print.SMALL EMPIRICAL MODELS OF EXCHANGE MARKETINTERVENTION: APPLICATIONS TO CANADA, GERMA-NY, AND JAPAN, by Deborah J. Danker, Richard A.Haas, Dale W. Henderson, Steven A. Symansky, andRalph W. Tryon. April 1985. 27 pp. Out of print.THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO-MY, by Darrell Cohen and Peter B. Clark. January1984. 16 pp. Out of print.

THE IMPLICATIONS FOR BANK MERGER POLICY OFFINANCIAL DEREGULATION, INTERSTATE BANKING,AND FINANCIAL SUPERMARKETS, by Stephen A.Rhoades. February 1984. Out of print.ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE-LINES, AND THE LIMITS OF CONCENTRATION IN LO-CAL BANKING MARKETS, by James Burke. June 1984.14 pp. Out of print.SOME IMPLICATIONS OF FINANCIAL INNOVATIONS INH I E UNITED STAFFS, by Thomas D. Simpson andPatrick M. Parkinson. August 1984, 20 pp.GEOGRAPHIC MARKET DELINEATION: A REVIEW OFTHE LITERATURE, by John D. Wolken. November1984. 38 pp. Out of print.A COMPARISON or DIRECT DEPOSIT AND CHECK PAY-MENT COSTS, by William Dudley. November 1984.15 pp. Out of print.MERGERS AND ACQUISITIONS BY COMMERCIALBANKS, 1960-83, by Stephen A. Rhoades. December1984. 30 pp. Out of print.COMPLIANCE COSTS AND CONSUMER BENEFITS OFTHE ELECTRONIC FUND TRANSFER ACT: RECENTSURVEY EVIDENCE, by Frederick J. Schroeder. April1985. 23 pp. Out of print.SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON-SUMER CREDIT REGULATIONS: THE. TRUTH IN LEND-ING AND EQUAL CREDIT OPPORTUNITY LAWS, byGregory E. Elliehausen and Robert D. Kurtz. May1985. 10 pp.SERVICE CHARGES AS A SOURCE OF BANK INCOMEAND THEIR IMPACT ON CONSUMERS, by Glenn B.dinner and Robert D. Kurt/. August 1985. 31 pp. Outof print.THE ROLE OF THE PRIME RATE IN THE PRICING OFBUSINESS LOANS BY COMMERCIAL BANKS, (977-84,by Thomas F. Brady. November 1985. 25 pp.REVISIONS IN THE MONETARY SERVICES (DIVISIA)INDEXES OF THE MONETARY AGGREGATES, by HelenT. Fair and Deborah Johnson. December 1985. 42 pp.'THE MACROECONOMIC AND SECTORAL EFFECTS OFrun ECONOMIC RECOVERY TAX ACT: SOME SIMULA-TION RESULTS, by Flint Brayton and Peter B. Clark.December 1985. 17 pp.THE OPERATING PERFORMANCE OI- ACQUIRED FIRMSIN BANKING BEFORE AND AFTER ACQUISITION, byStephen A. Rhoades. April 1986. 32 pp.STATISTICAL COST ACCOUNTING MODELS IN BANK-ING: A REF.XAMINAIION AND AN APPLICATION, byJohn T. Rose and John D. Wolken. May 1986. 13 pp.

A80

151. RESPONSES TO DEREGULATION; RETAIL DEPOSITPRICING FROM 1983 THROUGH 1985, by Patrick I.Mahoney, Alice P. White, Paul F. O'Brien, and MaryM. McLaughlin, January 1987. 30 pp.

152. DETERMINANTS OF CORPORATE: MERGER ACTIVITY; AREVIEW OF THE LITERATURE, by Mark J. War-shawsky. April 1987. 18 pp.

REPRINTS OF BULLETIN ARTICLES

Most of the articles reprinted do not exceed 12 paxes.

Limit of 10 copies

Foreign lixperience with Targets for Money Growth. 10/83.Intervention in Foreign Exchange Markets: A Summary of

Ten Staff .Studies. 11/83.A Financial Perspective on Agriculture. 1/84.Survey of Consumer Finances, 1983. 9/84.

Hank Lending to Developing Countries. 10/84.Survey of Consumer Finances, 1983: A Second Report.

12/84.Union Settlements and Aggregate Wage Behavior in the

1980s. 12/84.The Thrift Industry in Transition. 3/85.A Revision of the Index of Industrial Production. 7/85.Financial Innovation and Deregulation in Foreign Industrial

Countries. 10/85.Recent Developments in the Bankers Acceptance Market.

1/86.The Use of Cash and Transaction Accounts by American

Families. 2/86.Financial Characteristics of High-Income Families. 3/86.Prices, Profit Margins, and Kxchange Rates. 6/86.Agricultural Banks under Stress. 7/86.Foreign Lending by Banks: A Guide to International and

U.S. Statistics. 10/86.Recent Developments in Corporate Finance. 11/86.U.S. International Transactions in 1986. 5/87.

A8I

Index to Statistical TablesReferences are to pages A3-A73 although the prefix "A" is omitted in this index

ACCEPTANCES, bankers (See Bankers acceptances)Agricultural loans, commercial banks, 19, 20Assets and liabilities (See also Foreigners)

Banks, by classes, 18-20Domestic finance companies, 37Federal Reserve Banks, 10Financial institutions, 26Foreign banks, U.S. branches and agencies, 21, 70-73Nonfinancial corporations, 36

AutomobilesConsumer installment credit, 40, 41Production, 47, 48

BANKERS acceptances, 9, 23, 24Bankers balances, 18-20 (See also Foreigners)Bonds (See also U.S. government securities)

New issues, 34Rates, 24

Branch banks, 21, 55, 70-73Business activity, nonfinancial, 44Business expenditures on new plant and equipment, 36Business loans [See Commercial and industrial loans)

CAPACITY utilization, 46Capital accounts

Banks, by classes, 18Federal Reserve Banks, 10

Central banks, discount rates, 67Certificates of deposit, 24Commercial and industrial loans

Commercial banks, 16, 19, 73Weekly reporting banks, 19-21

Commercial banksAssets and liabilities, 18-20, 73Commercial and industrial loans, 16, 18, 19, 20, 21, 73Consumer loans held, by type, and terms, 40, 41Loans sold outright, 19Nondeposit funds, 17Real estate mortgages held, by holder and property, 39Time and savings deposits, 3

Commercial paper, 23, 24, 37Condition statements (See Assets and liabilities)Construction, 44, 49Consumer installment credit, 40, 41Consumer prices, 44, 50Consumption expenditures, 51, 52Corporations

Nonfinancial, assets and liabilities, 36Profits and their distribution, 35Security issues, 34, 65

Cost of living (See Consumer prices)Credit unions, 26, 40. (See also Thrift institutions)Currency and coin, 18Currency in circulation, 4, 13Customer credit, stock market, 25

DEBITS to deposit accounts, 15Debt (See specific types of debt or securities)Demand deposits

Banks, by classes, 18-21

Demand deposits—ContinuedOwnership by individuals, partnerships, and

corporations, 22Turnover, 15

Depository institutionsReserve requirements, 8Reserves and related items, 3, 4, 5, 12

Deposits (See also specific types)Banks, by classes, 3, 18-20, 21Federal Reserve Banks, 4, 10Turnover, 15

Discount rates at Reserve Banks and at foreign centralbanks and foreign countries (See Interest rates)

Discounts and advances by Reserve Banks (See Loans)Dividends, corporate, 35

EMPLOYMENT, 45Eurodollars, 24

FARM mortgage loans, 39Federal agency obligations, 4, 9, 10, 11, 31, 32Federal credit agencies, 33Federal finance

Debt subject to statutory limitation, and types andownership of gross debt, 30

Receipts and outlays, 28, 29Treasury financing of surplus, or deficit, 28Treasury operating balance, 28

Federal Financing Bank, 28, 33Federal funds, 6, 17, 19, 20, 21, 24, 28Federal Home Loan Banks, 33Federal Home Loan Mortgage Corporation, 33, 38, 39Federal Housing Administration, 33, 38, 39Federal Land Banks, 39Federal National Mortgage Association, 33, 38, 39Federal Reserve Banks

Condition statement, 10Discount rates (See Interest rates)U.S. government securities held, 4, 10, 11, 30

Federal Reserve credit, 4, 5, 10, 11Federal Reserve notes, 10Federal Savings and Loan Insurance Corporation insured

institutions, 26Federally sponsored credit agencies, 33Finance companies

Assets and liabilities, 37Business credit, 37Loans, 40, 41Paper, 23, 24

Financial institutionsLoans to, 19, 20, 21Selected assets and liabilities, 26

Float, 4Flow of funds, 42, 43Foreign banks, assets and liabilities of U.S. branches and

agencies, 21, 70-73Foreign currency operations, 10Foreign deposits in U.S. banks, 4, 10, 19, 20Foreign exchange rates, 68Foreign trade, 54Foreigners

Claims on, 55, 57, 60, 61, 62, 64Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66

A82

GOLDCertificate account, 10Stock, 4, 54

Government National Mortgage Association, 33, 38, 39Gross national product, 51

HOUSING, new and existing units, 49

INCOME, personal and national, 44, 51, 52Industrial production, 44, 47Installment loans, 40, 41Insurance companies, 26, 30, 39Interest rates

Bonds, 24Consumer installment credit, 41Federal Reserve Hanks, 7Foreign central banks and foreign countries, 67Money and capital markets, 24Mortgages, 38Prime rate, 23

International capital transactions of United States, 53-67International organizations, 57, 58, 60, 63, 64Inventories, 51Investment companies, issues and assets, 35Investments (See also .specific types)

Ranks, by classes, 18, 19, 20, 21, 26Commercial banks, 3, 16, 18-20, 39, 76Federal Reserve Hanks, 10, 11Financial institutions, 26, 39

LABOR force, 45Life insurance companies (See Insurance companies)Loans (See also specific types)

Banks, by classes, 18-20Commercial banks, 3, 16, 18-20, 76Federal Reserve Banks, 4, 5, 7, 10, 11Financial institutions, 26, 39Insured or guaranteed by United States, 38, 39

MANUFACTURINGCapacity utilization, 46Production, 46, 48

Margin requirements, 25Member banks (See also Depository institutions)

Federal funds and repurchase agreements, 6Reserve requirements, 8

Mining production, 48Mobile homes shipped, 49Monetary and credit aggregates, 3, 12Money and capital market rates, 24Money stock measures and components, 3, 13Mortgages (See Real estate loans)Mutual funds, 35Mutual savings banks, (See Thrift institutions)

NATIONAL defense outlays, 29National income, 51

OPF.N market transactions, 9

PERSONAL income, 52Prices

Consumer and producer, 44, 50Stock market, 25

Prime rate, 23Producer prices, 44, 50Production, 44, 47Profits, corporate, 35

REAL estate loansBanks, by classes, 16, 19, 20, 39

Real estate loans—continuedFinancial institutions, 26Terms, yields, and activity, 38Type of holder and property mortgaged, 39

Repurchase agreements, 6, 17, 19, 20, 21Reserve requirements, 8Reserves

Commercial banks, 18Depository institutions, 3, 4, 5, 12Federal Reserve Banks, 10U.S. reserve assets, 54

Residential mortgage loans, 38Retail credit and retail sales, 40, 41, 44

SAVINGFlow of funds, 42, 43National income accounts, 51

Savings and loan associations, 26, 39, 40, 42. (See alsoThrift institutions)

Savings banks, 26, 39, 40Savings deposits (See Time and savings deposits)Securities (See specific types)

Federal and federally sponsored credit agencies, 33Foreign transactions, 65New issues, 34Prices, 25

Special drawing rights, 4, 10, 53, 54State and local governments

Deposits, 19, 20Holdings of U.S. government securities, 30New security issues, 34Ownership of securities issued by, 19, 20, 26Rates on securities, 24

Stock market, selected statistics, 25Stocks {Sec also Securities)

New issues, 34Prices, 25

Student Loan Marketing Association, 33

TAX receipts, federal, 29Thrift institutions, 3. (See also Credit unions and Savings

and loan associations)Time and savings deposits, 3, 13, 17, 18, 19, 20, 21Trade, foreign, 54'Treasury cash, Treasury currency, 4Treasury deposits, 4, 10, 28'Treasury operating balance, 28

UNEMPLOYMENT, 45U.S. government balances

Commercial bank holdings, 18, 19, 20'Treasury deposits at Reserve Hanks, 4, 10, 28

U.S. government securitiesBank holdings, 18-20, 21, 30Dealer transactions, positions, and financing, 32Federal Reserve Bank holdings, 4, 10, II, 30Foreign and international holdings and transactions, 10,

30, 66Open market transactions, 9Outstanding, by type and holder, 26, 30Rates, 24

U.S. international transactions, 53-67Utilities, production, 48

VETERANS Administration, 38, 39

WEEKLY reporting banks, 19-21Wholesale (producer) prices, 44, 50

YIELDS (See Interest rates)

A83

Federal Reserve Banks, Branches, and OfficesFEDERAL R E S E R V I T B A N K , Chairman President Vice Presidentbranch, or facility Zip Deputy Chairman First Vice President in charge of branch

BOSTON* ...02106 Joseph A. Baute Frank E. MorrisGeorge N. Hatsopoulos Robert W. Eisenmenger

NEW YORK* 10045 John R. Opel E. Gerald CorriganVirginia A. Dwyer Thomas M. Timlen

Buffalo 14240 Mary Ann Lambertsen John T. Keane

PHILADELPHIA 19105 Ncvius M. Curtis Edward G. BoehneGeorge E. Bartol III William H. Stone, Jr.

CLEVELAND* 44101 Charles W. Parry vacancyJohn R. Miller William H. Hendricks

Cincinnati 45201 Owen H. Butler Charles A. Cerino1

Pittsburgh 15230 James E. Haas Harold J. Swart1

RICHMOND* 23219 Leroy T. Canolcs, Jr. Robert P. BlackRobert A. Georgine Jimmie R. Monhollon

Baltimore 21203 Gloria L. Johnson Robert D. McTcer, Jr.1

Charlotte 28230 Wallace J. Jorgenson Albert D. Tinkelenberg1

Culpeper Communications John G. Stoides1

and Records Center 22701

ATLANTA 30303 Bradley Currey, Jr. Robert P. ForrestalLarry L. Prince Jack Guynn Delmar Harrison1

Birmingham 35283 A. G. Trammell Fred R. Hen1

Jacksonville 32231 Andrew A. Robinson James D. Hawkins1

Miami 33152 Robert D. Apelgren Patrick K. Barron1

Nashville 37203 C. Warren Neel Donald E. NelsonNew Orleans 70161 Caroline K. Thcus Henry H. Bourgaux

CHICAGO* 60690 Robert J. Day Silas KeehnMarcus Alexis Daniel M. Doyle

Detroit 48231 Robert E. Brewer Roby L. Sloan1

ST. LOUIS 63166 W.L. Hadley Griffin Thomas C. MclzerRobert L. Virgil, Jr. Joseph P. Garbarini

Little Rock 72203 James R. Rodgers John F. BreenLouisville 40232 Raymond M. Burse James F. ConradMemphis 38101 Katherine H. Smythe Paul 1. Black, Jr.

MINNEAPOLIS 55480 John B. Davis, Jr. Gary H. SternMichael W. Wright Thomas E. Gainor

Helena 59601 Warren H. Ross Robert F. McNellis

KANSAS CITY 64198 Irvine O. Hockaday, Jr. Roger GuffeyRobert G. Lueder Henry R. Czerwinski

Denver 80217 James E. Nielson Fnis Alldredge, Jr.Oklahoma City 73125 Patience S. Latting William G. EvansOmaha 68102 Kenneth L. Morrison Robert D. Hamilton

DALLAS 75222 Bobby R. Inman Robert H. BoykinHugh G. Robinson William H. Wallace Tony J. Salvaggio1

El Paso 79999 Mary Carmen Saucedo Sammie C. ClayHouston 77252 Walter M. Mischer, Jr. J. Z. Rowe1

San Antonio 78295 Robert F. McDermott Thomas H. Robertson

SAN FRANCISCO 94120 Fred W. Andrew Robert T. ParryRobert F. Erburu Carl E. Powell

Los Angeles 90051 Richard C. Seaver Thomas C. Warren-Portland 97208 Paul E. Bragdon Angelo S. Carella1

Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett1

Seattle 98124 John W. Ellis Gerald R. Kelly1

•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cninford, New Jersey 07016;Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, WestVirginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.

1. Senior Vice President.2. Executive Vice President.

AX4

The Federal Reserve SystemBoundaries of Federal Reserve Districts and Their Branch Territories

M"""'

April 1984

Ll.Cl.Nl)

~~~ Boundaries of Federal Reserve Districts

Boundaries of Federal Reserve BranchTerritories

Board of'Governors of the Federal ReserveSystem

® Federal Reserve Bank Cities

" Federal Reserve Branch Cities

Federal Reserve Bank Facility

Documents

BULLETI FEDERAL RESERVNE Reserve... · 2011. 10. 23. · ance of the House Committee on Banking, Finance and Urban Affairs, June 9, 1987. 655 ANNOUNCEMENTS Statement by Chairman Volcker