BULLETI FEDERAL RESERVNE Reserve Bulletin/Federal Reserve Bulletin...maintained their profit margins...

VOLUME 74 • NUMBER 9 • SEPTEMBER 1988

FEDERAL RESERVE

BULLETIN

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

PUBLICATIONS COMMITTEE

Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost• Griffith L. Garwood • Donald L. Kohn • Michael J. Prell • Edwin M. Truman

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

591 PERSONAL BANKRUPTCIES

This article describes the evolution of bank-ruptcy law, discusses the causes and effectsof personal bankruptcy, and examines thehistorical trends in bankruptcy filings, par-ticularly since 1984, which marked the be-ginning of a countercyclical upswing in thenumber of bankruptcy filings.

604 INDUSTRIAL PRODUCTION

Industrial production increased an esti-mated 0.4 percent in June.

607 STATEMENT TO CONGRESS

Alan Greenspan, Chairman, Board of Gov-ernors, reviews the recent and prospectivemonetary policy and the economic outlook,including our nation's longer-term eco-nomic objectives, the overall strategy forfiscal and monetary policies needed toreach those objectives, and the appropriatetactics for implementing monetary policywithin that strategic framework, before theSenate Committee on Banking, Housing,and Urban Affairs, July 13, 1988.

614 ANNOUNCEMENTS

Appointment of John P. La Ware as a mem-ber of the Board of Governors.

Publication of a new handbook for the Reg-ulatory Service.

Two studies on managing risk in the pay-ments system now available.

Update to staff guidelines under RegulationAA.

Revised List of OTC Stocks Subject toMargin Regulations now available.

Extension of comment period on same-daypayment of checks.

Informal hearing held on proposed rule toimplement the limitations placed on grand-fathered nonbank banks by the CompetitiveEquality Banking Act of 1987.

Change in Board staff.

617 LEGAL DEVELOPMENTS

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

630 MEMBERSHIP OF THE BOARD OFGOVERNORS OF THE FEDERALRESERVE SYSTEM, 1913-88.

List of appointive and ex officio members.

AI FINANCIAL AND BUSINESS STATISTICSThese tables reflect data available as ofJuly 28, 1988.

A3 Domestic Financial StatisticsA4 Domestic Nonfinancial StatisticsA5 International Statistics

A69 GUIDE TO TABULAR PRESENTATION,STATISTICAL RELEASES, AND SPECIALTABLES

A86 BOARD OF GOVERNORS AND STAFF

A88 FEDERAL OPEN MARKET COMMITTEEAND STAFF; ADVISORY COUNCILS

A90 FEDERAL RESERVE BOARDPUBLICATIONS

A93 INDEX TO STATISTICAL TABLES

A95 FEDERAL RESERVE BANKS,BRANCHES, AND OFFICES

A96 MAP OF FEDERAL RESERVE SYSTEM

Personal Bankruptcies

Charles A. Luckett of the Board's Division ofResearch and Statistics prepared this article withthe assistance of Nellie D. Middleton and WayneC. Cook. Footnotes appear at the end of thearticle.

Declarations of bankruptcy by nonbusiness peti-tioners have risen sharply over the past 3'/2years, even as employment and aggregate per-sonal income registered solid growth. This ratherunusual countercyclical upswing in nonbusinessbankruptcies (hereafter called "personal" bank-ruptcies) has generated considerable puzzlementand some concern.

The consumption-related debt of the house-hold sector also has grown substantially duringthe current economic advance, both absolutelyand relative to disposable income, a trend that islikely a key factor underlying the rise inbankruptcies.1 In addition, revisions to bank-ruptcy laws and changes in consumer attitudestoward bankruptcy may have fostered a climatein which people regard bankruptcy as a moreplausible remedy for financial problems than theyonce did. Despite the rising number of bankrupt-cies, however, credit suppliers apparently havemaintained their profit margins relatively well.So far, the surge in bankruptcies does not seemto have motivated any measurable restriction onthe supply of credit to consumers.

This article will describe the historical trendsof bankruptcy filings and the evolution of bank-ruptcy law, examine the causes and effects ofpersonal bankruptcy, briefly review relevantstudies, and then close with a detailed scrutiny ofthe trend in bankruptcies since 1984.

HISTORICAL I'KISDS IS H.WKRUFK.r

In 1946, personal bankruptcy filings totaled fewerthan 9,000, which last year was about the averagenumber of filings per week.2 In 1946, of course,

the nation was just emerging from World War IIand from the stringent controls imposed duringthe war on the production of consumer goods.With few automobile or refrigerator purchases tobe financed during the war years—and becauserestrictions also were imposed on the making ofconsumer loans—the stock of consumer install-ment debt outstanding at the end of 1945 wasonly $2.5 billion, equivalent to about $16 billionin 1987 dollars. The consumer debt outstandingin 1945 summed to less than 2 percent of theamount of disposable income for all U.S. house-holds; today, this aggregate debt-to-income ratiostands at nearly 19 percent.

Clearly, consumer debt has grown substan-tially from its war-depressed level, and personalbankruptcies have too. From 1946 until well intothe mid-1960s, bankruptcies rose in each year,climbing to 190,000 cases in 1967 (chart 1).Increases were particularly large in recessionyears, but some rise occurred even in the yearsof strongest economic growth. The long postwarclimb in bankruptcies finally ended in 1968 with adrop of 18,000 cases, initiating a 12-year periodduring which bankruptcies fluctuated from yearto year, sometimes widely, but showed no un-derlying trend.

Bankruptcy filings then surged to new highs inthree consecutive years starting with 1980. Indi-

I . Personal bnnknij)loc\

Number of filings in thousands

1940 1950 1960 1988

Shaded areas denote periods of business recession.

592 Federal Reserve Bulletin • September 1988

viduals had amassed substantial debts during thehigh-inflation years of the late 1970s, and theeconomy endured back-to-back recessions dur-ing the early 1980s that carried the unemploy-ment rate from less than 6 percent to more than10 percent. Moreover, a major revision to federalbankruptcy law took effect in the fall of 1979.This revision made bankruptcy a more attractiveoption to troubled debtors, particularly becauseit increased the amount of assets that could beexempt from liquidation. Whatever the effect ofthese various factors, bankruptcies jumped fromabout 200,000 cases in 1979 to nearly 315,000 in1982. This figure was even understated some-what in comparison with previous years becausehusband-and-wife bankruptcies were treated astwo cases under the old law and as one case afterthe revisions became effective.

As economic activity regained momentum in1983 and 1984, bankruptcies declined once more,as they had during three previous cyclical up-swings. But historical patterns went awry in 1985and 1986 when bankruptcies shot up more than20 percent in each year despite the strength of theeconomy. The uptrend in bankruptcies slowed toa 10 percent rate in 1987, but the number of casesfiled totaled nearly 500,000, substantially abovethe 1982 cyclical high. Sizable additions to con-sumer debt during the period no doubt contrib-uted to the surge in bankruptcies; still, the latestrise in bankruptcies, because it occurred during abusiness expansion, seems larger than the eco-nomic fundamentals would suggest. On thewhole, the 1985-87 surge in bankruptcies is apuzzling development, one that will be addressedfurther in later sections.

iiVOI.UIION ()'. llANKIiUPTCY I .AW

The purpose and characteristics of bankruptcyprocedures in the United States are considerablydifferent from their antecedents in Roman law.For most of history, bankruptcy was a procedureimposed by creditors to confiscate and distributethe assets of a delinquent debtor. In more recenttimes, U.S. bankruptcy law has been restruc-tured to achieve more of a balancing of theinterests of creditors and debtors and to providedebtors with a fresh start.

The word "bankruptcy" has its roots in theLatin words for "bench" and "break"; its literalmeaning is "broken bench." Under Roman law,creditors, after gathering together and dividingup the assets of a delinquent debtor, wouldphysically break the debtor's workbench as apunishment and perhaps as a warning to otherindebted tradesmen. Bankrupts were regarded asperpetrators of fraud who deserved severe pen-alty; the Romans deprived bankrupts of theircivil rights, and many other societies stigmatizedthem by requiring that they dress in a particularidentifying garb.

Early law, then, sought merely to establish anorderly means of satisfying the claims of credi-tors; neither discharge of debt nor rehabilitationof debtors constituted an element of the bank-ruptcy process as it evolved in Western societiesthrough the centuries. Not until 1705 did Englishlaw provide for remission of the debts of bank-rupts, and even then not as a humane gesture togive the bankrupt a new start, but as a practicalmeans to counter the concealment of assets bydebtors. By assuring bankrupts that their credi-tors would forswear future collection efforts if allcurrently owned assets were surrendered, thelaw created an incentive for debtors to comply.

The first bankruptcy law in the United Stateswas passed in 1800, but was repealed three yearslater. Reflecting its heritage from English law,the statute applied only to tradesmen, mer-chants, and others in business (virtually no "con-sumer" credit existed); it made no provision forvoluntary bankruptcy, discharge of debts, ex-emption of any assets, or payment of debts out offuture income. Equally short-lived bankruptcylaws were passed in 1842 and 1867 in response tofinancial panics.

After another major financial crisis in the1890s, the Congress adopted the Bankruptcy Actof 1898, which survived, with amendments, untilenactment of a new statute in 1978. The 1898 actrepresented a significant liberalization of bank-ruptcy practice. It brought consumer as well ascommercial debtors under its wing, and ex-panded bankruptcy from a remedy that wasimposed by creditors to one that could be volun-tarily sought by debtors. It provided for thedischarge of debts that were not satisfied byliquidation of the debtor's assets, and also autho-

Personal Bankruptcies 593

rized state legislatures to establish categories ofassets that would be exempt from the claims ofcreditors. Thus, at the close of the 19th century,a body of law originally designed to serve credi-tors took on a significant aspect of debtor pro-tection.

The most important of several amendments tothe Bankruptcy Act was the Chandler Act in1938, which established a procedure for insolventdebtors to retain their assets and to repay allor part of their obligations over a three-yearperiod with court protection from their credi-tors. Available to employed persons with aregular income, these court-administered repay-ment schedules were known as "wage-earnerplans."

Following extensive study and congressionalhearings on the functioning of the bankruptcyprocess, a revised bankruptcy code, enacted in1978 (the Bankruptcy Reform Act of 1978), tookeffect on October 1, 1979. The code consolidatedsome chapters of previous law pertaining tobusiness reorganizations and sought to stream-line the administration of the bankruptcy courts,but its most sweeping changes involved personalbankruptcy. It erected greater protection againstrepossession of collateral for consumer loans andmade it more difficult for creditors to elicit anindividual's reaffirmation of a discharged debtafter bankruptcy. Most important, the code in-troduced federal asset exemptions ($7,500 ofequity in a home and approximately $3,000 inother designated assets) that were considerablymore generous than were most state exemptions.It also permitted each individual of a marriedcouple to claim such exemptions, thus doublingthe amount of exemptions available to marriedpersons.3

Provisions for the wage-earner repaymentplans were redrafted to cover some debts thatcould not be discharged under "straight" bank-ruptcy, such as student loans, government finesand penalties, and loans obtained through falsefinancial statements. The new code also removeda provision of the old law that creditors mustapprove any plan for repayment, and gave thecourt sole discretion to accept a plan offered by apetitioner. A plan was to be confirmed if thecourt found that it had been proposed in goodfaith, that the amount to be paid the creditors

THE U.S. BANKRUPTCY CODE

In its current form, the U.S. bankruptcy codecontains five "operative" chapters (7, 9, 11, 12,and 13) under which bankruptcy petitions may befiled. Chapter 9 applies exclusively to municipal-ities and chapter 11 primarily to business reorga-nizations. Individuals most commonly file underchapters 7 or 13. Chapter 7 provides for"straight" bankruptcy—that is, liquidation of as-sets and discharge of debts—and may be usedeither by business or nonbusiness petitioners. Itaccounts for about 70 percent of all bankruptcies,and typically, 85 percent of chapter 7 cases areclassified as nonbusiness. Chapter 13 provides forthe "wage-earner plans" that involve the full orpartial repayment of debts while assets areshielded from creditor action. It is limited toindividuals, but insofar as an individual may be asole proprietor with mostly business-relateddebts, chapter 13 also embraces both business andnonbusiness cases. About 95 percent of Chapter13 cases involve nonbusiness petitioners. Chapter12, added to the statute in 1986, is the newestoperative section of the bankruptcy code. Itmakes available to "family farmers" (as definedin the code) the equivalent of a chapter 13 repay-ment program. Chapter 12 cases are classifed asbusiness bankruptcies.

was not less than what would have been paid tothem through liquidation, and that the debtorwould be able to make the payments contem-plated by the plan.

As noted, filings for personal bankruptcy shotup in 1980 and 1981. This surge in filings openeda debate on whether the 1978 reforms had gonetoo far, and led eventually to some retooling ofthe bankruptcy code in 1984. Courts were re-quired, for instance, to prohibit discharge ofdebts that financed eve-of-bankruptcy spendingsprees. Section 707(b) of the code embodied apotentially major change, which provided thatthe court could dismiss a discharge petition of anindividual debtor if it found that the granting ofrelief would constitute "a substantial abuse."The law did not establish specific standards forsuch a finding, however, and in practice thesubstantial-abuse test has not been vigorouslyapplied.


w •• n

Reasons for the long postwar uptrend in bank-ruptcies and the more recent large jumps are-generally interpreted from one of two perspec-tives. Some researchers have emphasized amacroeconomic approach that relates the totalnumber of bankruptcy filings in a period tomovements in such broad economic factors asthe rate of unemployment and the degree ofindebtedness. Others have adopted the micro-economic approach of examining individual casehistories to identify economic and demographicattributes that appear to characterize bankruptindividuals.

M<>\

Study of the broad economic forces affectingbankruptcies was relatively neglected until the1980s, when the revisions to the federal bank-ruptcy code and the explosion in the number offilings stimulated several efforts to determinehow much of the rise was attributable to the newlaw. Earlier studies had simply observed, ordemonstrated with a rudimentary statisticalmodel, that the postwar uptrend in bankruptciesrather closely paralleled the expansion of con-sumer debt. One study, for instance, using an-nual data for 1946-70, calculated a high statisti-cal correlation between the number ofbankruptcies per capita and the ratio of con-sumer installment debt to disposable personalincome.4 Such a result is not especially surpris-ing, in that being in debt is a necessary conditionfor bankruptcy. But, without a more rigorouslyspecified model, there is no way to determinewhether other factors might serve either to miti-gate or to intensify the effect of aggregate indebt-edness on total bankruptcies, or whether thesensitivity of bankruptcies to changes in indebt-edness might vary with different absolute levelsof debt burden.

Another study, which examined reasons fordifferences in bankruptcy rates among states,attributed most of the interstate variation todifferences in wage garnishment laws, and rela-tively little to different levels of debt-to-incomeratio and unemployment rate.5 An attempt toassess the effects over time of the economic

variables within each state was largely unsuc-cessful, partly because the number of annualobservations (12) was too few to yield reliableresults.

In the early 1980s researchers needed a work-able model of the macroeconomic forces under-lying national bankruptcy trends to help answerquestions about the effects of the new federalbankruptcy law. The typical approach of theirstudies was to estimate the parameters of abankruptcy model for a period ending just beforethe effective date of the law, to project bankrupt-cies into the subsequent period on the basis ofthe model, and to interpret the differences be-tween actual and projected bankruptcies as theresult of the alteration in the legal environment.(Table 1 presents data on bankruptcy rates andsome variables frequently associated with bank-ruptcy.)

Some of the models to project bankruptcieswere specified in no greater detail than the earliermodels had been. One, for instance, simply ex-trapolated previous bankruptcy trends withoutallowing for movements in economic variables;another projected the normal level of bankrupt-cies during 1980, a year of recession, on the basisof the severity of declines in manufacturing em-ployment in 1980 relative to such declines in pastrecessions.6 These studies found as much asthree-fourths of the actual climb in bankruptciesto be unexplained by the projection method, andtherefore attributable to changes in the law, inthe absence of other obvious explanatory fac-tors.

Other studies placed more emphasis on modeldevelopment by testing the explanatory power ofa wider variety of economic variables. Onestudy, by Richard Peterson and Kiyomi Aoki,built upon earlier work by analyzing differencesamong states in numbers of bankruptcies as afunction of both legal and economic variables.7

Using data for two quarters, one before and oneafter the effective date of the new law, the studyestimated explanatory equations for the two pe-riods separately and in combination. In contrastto the earlier study of differences among states inbankruptcy rates, this one found a considerablystronger and more consistent relationship be-tween employment indicators and bankruptcy,and correspondingly weaker links between gar-


1. Bankruptcy rale*

Year

194J19501955I9601965..197019751980

1981198219831984198519861987

a i l i i v; • i a r

Bankruptcies per1,000 persons

.07

.16

.27;

.54

.88

.92

.07

.25

.35

.35

.24

.20

.438601

i lcu a s p o s s i b l e i . i c l u r s .

Debt-to-income ratio(percent)

Variable

Unemployment rate(percent)

1.77.3

10.712.415.014.514.615.5

14.614.315.216.618.218.619,3

n.a.5.24.45.54.55.08.57.2

7.69.79.67.57.27.06.2

Divorces per 1,000persons

3.52.62.32.22.53.54.85.2

5.35.04.95.05.04.8n.a.

Real household networth, per capita

(thousands of dollars)

n.a.n.a.29.431.936.438.339.445.1

45.243.846.946.948.451.853.6

SOURCES. Administrative Office of the U.S. Courts, U.S. Depart-ment of Commerce, Board of Governors of the Federal Reserve

System, U.S. Department of Labor, and U.S. National Center forHealth Statistics.

nishment laws and bankruptcy.8 Debt burdenwas not examined because data at the state levelwere not available.

Another result of interest from this study wasthat the employment variables (the unemploy-ment rate and average hours worked per week)had a much stronger influence in the post-enact-ment equation than in the pre-enactment equa-tion, a result that may have been associated withthe recession that took place in 1980. The in-crease in the significance of the employmentvariables during a recession suggests that therelationship between employment conditions andbankruptcy may be more complex than verysimple models can describe. The unemploymentrate may not be significant as long as it fluc-uates between, say, 3 and 5 percent, but maybegin to make a difference once it crosses somecritical level. The level of the unemploymentrate also may interact with the change in unem-ployment, so that a high level alone may notnecessarily correspond with bankruptcy rates.Insofar as unemployment was rising sharply in1980 in many areas, the sensitivity of bankrupt-cies to unemployment levels may have beengreater.

The debt-to-income ratio reemerged as an im-portant explanatory variable in a study of annualbankruptcies at the national level conducted byLawrence Shepard.9 Shepard concluded that the

sharp increases in debt accounted for much ofthe steep climb in bankruptcies through the early1960s, and that the subsequent leveling off ofbankruptcies resulted from the slowing uptrendin the debt-to-income ratio and from more rapidgains in household wealth. In fact, he observed,these developments should have caused the num-ber of bankruptcies to fall after the mid-1960s.Shepard attributed the absence of any decline toa vast expansion in the level of public assistance,which he believed was likely to make individualsincreasingly willing to risk the financial setbacksthat could result in bankruptcy.10

Perhaps the most thoroughly structured theo-retical approach to the causes of bankruptcy wasthat of K.J. Kowalewski." Kowalewski devel-oped an intertemporal utility-maximizationmodel that weighed a given consumer's prefer-ences between present and future consumptionagainst a budget constraint imposed by the con-sumer's endowment of present and future in-come (discounted to present value). A consumercould borrow against future income to increasecurrent consumption or could enhance futureconsumption by saving part of present income.Kowalewski introduced such realistic complica-tions as the existence of accumulated savings andnonequal interest rates on savings and borrow-ing. A key complexity examined was that ofuncertainty about future income, which could


affect the terms on which lenders would makecredit available: if actual income were to fallshort of the expected level in some future period,a consumer could be unable to meet that period'spayment obligations.

In the empirical estimation of the model,Kowalewski used quarterly data for 1961 through1979, with bankruptcy filings per capita for thenation as a whole as his dependent variable. Asexplanatory variables, he used measures of both"permanent" and "transitory" income, an inter-est rate series, and a variable for "nondiscre-tionary payments" constructed to include expen-ditures on food, utilities, and other necessities,as well as scheduled debt payments. The modelalso included three "portfolio" variables bearingupon the costs and benefits of filing for bank-ruptcy: the stock of consumer durable goods andresidential structures, household liabilities, andhousehold liquid assets, all measured in terms ofconstant dollars per capita. All of the variablesexcept the interest rate series were statisticallysignificant, with expected signs and reasonablecoefficients.12

Inasmuch as the projections of the modelthrough the end of 1981 accounted for a fairlysubstantial portion of the actual numbers ofbankruptcy cases filed, it appeared that observ-able economic factors generated more of thebankruptcy surge than most other researchershad estimated. Kowalewski found that one-thirdof the rise in bankruptcies in the two-year pro-jection period may have been attributable tochanges in the law; estimates of other investiga-tors had ranged from one-half to three-fourths.

Several studies have sought to identify thecauses of bankruptcy by inspecting the demo-graphic and financial characteristics of individualbankrupts, either by examination of actual bank-ruptcy petitions or by personal interview orquestionnaire. The findings of these several stud-ies have been consistent in most respects.

Studies of individual bankrupts in Michiganand Utah in the early 1960s found that most ofthem worked at lower-paying unskilled or semi-skilled manual labor, and that most were em-ployed at the time they filed for bankruptcy.13

These employment characteristics were verifiedby two broader surveys in the 1980s: a study of1,600 bankrupt customers of four finance compa-nies conducted by Brimmer and Company, Inc.,and a study of 1,200 bankrupts from ten differentstates carried out by researchers at PurdueUniversity.14 In both studies, about 80 percent ofthe bankrupts were employed when surveyed,generally in blue collar jobs. The Purdue studyalso observed that about 20 percent of the bank-ruptcies involved two-income families.

Age as well as occupation and income level hasemerged as an important factor in studies ofbankruptcy petitioners. Most studies have foundthat families involved in bankruptcy were rela-tively young and often had more than the averagenumber of children. The Purdue study furtherobserved that persons (of any age) who were notcurrently married and who had children weretwice as common among bankrupts as amongdebtors in general.

Some studies of individual bankrupts haveinquired into the reasons for the bankruptcydeclaration. Results are somewhat difficult tointerpret because some responses, such as "toomuch debt," might reasonably apply in virtuallyevery instance. In a 1971 study of the bankruptcyprocess, David Stanley and Marjorie Girth triedto identify the "underlying" and "immediate"causes of bankruptcy from interviews with 400former bankrupts.15 The most frequently men-tioned underlying cause was poor debt manage-ment, followed closely by family health reasonsand then by job problems, including strikes,layoffs, and loss of overtime. The most commonimmediate causes triggering a bankruptcy werethreats of legal action, poor debt management,actual legal action, and the desire to avoid payingcertain debts. The Brimmer study likewise foundoveruse of credit, employment problems, andmedical expenses among the factors cited mostoften, along with marital problems, which werementioned much more frequently than they werein the Stanley and Girth study.

On balance, then, the various studies of indi-vidual cases agree that bankruptcy (at leastthrough the early 1980s) has been experiencedmainly by lower-income households with princi-pal wage-earners employed as manual, oftenunskilled, workers. Outright unemployment


seems to have been a less critical determinantthan the researchers had anticipated, althoughjob-related conditions, such as loss of overtime,were frequently a factor. Marital problems, largemedical bills, and other personal trauma contrib-uted to many of the decisions to file for bank-ruptcy, t

iy.'lS ()!•'

The disruption that serious financial stress bringsto individual lives is perhaps the major conse-quence of bankruptcy. It is an important concernfor sociologists and legislators alike, but one thatlies outside the predominantly macroeconomiccontext of this article. This article views theeffects of bankruptcy as they pertain to thefunctioning of the consumer credit markets, ormore broadly, to the major economic aggregates.These two spheres are not entirely separate; anissue such as the impact of personal bankruptcieson lender profit margins, for example, has impli-cations for total consumer spending through itsrole in shaping the aggregate supply function ofconsumer credit.

Effects on Credit Supply

A clear consensus on the effects of personalbankruptcy is that, in the long run, the lossesfrom discharged debts are transmitted to all otherborrowers in the form of more expensive creditor reduced availablity of credit. Researchersusually assert this conclusion on the basis ofwell-known economic principles, but say littleabout the process by which the market arrives atthe ultimate outcome. Two important aspects ofthat process involve the magnitude of the effectsof bankruptcy on profits and the real-world com-plexities faced by creditors having to assess howbankruptcies are affecting profits and to respondin an effective way.

Several studies have attempted to estimate thetotal amount of debts discharged in a year as ameasure of the cost of bankruptcy to the creditindustry and, ultimately, to the economy. Thestudies by Brimmer and Company and by thegroup at Purdue estimated bankruptcy chargeoffsin 1980 and 1981 to be about $3'/4 billion to $4>/4

billion. The Federal Reserve figure for consumercredit outstanding at the end of 1980 was $350billion; estimated losses from bankruptcy thusamounted to about 1 percent of credit outstand-ing, a figure arguably large enough to influencethe behavior of lenders that typically earn be-tween 2 and 3 percent net on their consumerreceivables.

In assessing the implications of such a lossrate, some caveats are in order. One is that asubstantial portion of the debts discharged inbankruptcy are owed to hospitals and otherclaimants that are not part of the consumer creditstatistics; thus the estimated 1 percent rate ofloss no doubt overstates actual rates of bank-ruptcy loss.16 Moreover, since creditors are con-cerned with their overall loan-loss experience,whether or not a particular bad debt was owed bya bankruptcy petitioner may not matter to thecreditor if the debt would have been charged offanyway. Only when bankruptcy results in acreditor writing off a debt that would otherwisehave been paid is the loss attributable in ameaningful way to "bankruptcy." But accordingto findings of the Purdue studies, only about aquarter of the debts owed by bankrupts at thetime of filing would have been recoverable in theabsence of the bankruptcy. That is, only $1billion of the total loss of $4 billion was truly aresult of bankruptcy.

Some data available from trade sources mayhelp to illuminate the issue of how large an effectbankruptcy declarations have on the credit lossesof lenders. The American Bankers Association(ABA) publishes annual statistics covering netloss rates on consumer lending at commercialbanks and also the proportion of losses associ-ated with bankruptcy (table 2), a part of which,as suggested above, would likely be written off inany event.17

According to the ABA data for 1978 to 1986,banks charge off about 0.5 percent of theirclosed-end installment loans in a year, give ortake 0.1 percent; the highest loss rate, in therecession year 1980, was 0.63 percent. The pro-portion of losses identified with bankruptcy dur-ing the period ranged from 15 to 24 percent.Together, these statistics suggest that bank-ruptcy losses amounted to about 0.1 to 0.2 per-cent of credit outstanding. Even during the re-


Year

19781979198019811982

1983 . . . .198419851986

19781979198019811982. . . .

1983198419851986. . . .

; ! . - • • - . : • . ' • • ;

Losses net ofrecoveries as a

percent ofcredit

outstanding

Percent oflosses due tobankruptcy1

Losses due tobankruptcy asa percent of

creditoutstanding2

Closed-end installment loans

.38

.44

.63

.50

.40

.36

.28

.39

.47

.34

.87'.29.96.67

.34

.27

.35

.40

15.116.419.923.123.6

21.821.923.022.7

Jank-card credit

n.a.n.a.n.a.n.a.n.a.

25.625.237.932.7

.06

.07

.13

.12

.09

.08

.06

.09

.11

n.a.n.a.n.a.n.a.n.a.

.34

.32

.51

.46

1. The ABA reports data for five asset-size categories of banks, butno overall average figure for all banks. For this table, the average forall banks was calculated by weighting the ABA's figure for each sizegroup by the proportion of total consumer installment credit (or totalbank-card credit, as appropriate) held by the given group.

2. Calculated for this table by multiplying column I by column 2.n.a. Not available.SOURCE. American Bankers Association, Retail Bank Credit Re-

port, issues for 1981 through 1987.

cent surge in bankruptcies, losses at commercialbanks due to personal bankruptcy rose only 0.05percentage point—from 0.06 in 1984 to 0.11 per-cent in 1986 (latest data available). While thatperformance represents an increase of 80 per-cent, even steeper than the rise in the number ofbankruptcies nationally, the incremental loss rate

has an almost negligible impact on profitability.Similar statistics for bank credit cards revealhigher loss ratios than for closed-end lending,and somewhat higher proportions attributable tobankruptcies, but they still show rather smallvariations from year to year in the proportion ofoutstandings written off in bankruptcy cases(table 2).

Table 3 presents net earnings and credit lossstatistics on installment loans and bank-cardcredit from another source, the Federal Re-serve's Functional Cost Analysis (FCA).18 Thecredit loss ratios in the FCA are somewhat higherthan the ABA estimates, but are still reasonablyclose and show the same patterns year to year.The loss ratios are clearly high enough relative toearnings so that substantial changes in loss expe-rience could significantly affect a firm's bottomline.

During the years examined, however, lossrates just as clearly have not been the primedeterminant of variation in net earnings onclosed-end installment loans. Net earnings havefluctuated considerably more than have creditlosses for this type of lending. The largest move-ment in loan losses was the increase of 0.28percentage point in 1980, which, other thingsequal, should have reduced net earnings by thatamount. However, net earnings actually declined0.86 percentage point, or three times as much.Similarly, big increases in profitability occurredin 1982 and 1983, but in tandem with only mod-erate dips in loss rates. Then in 1984, profitabilityeased off despite the positive influence of anothersmall decline in chargeoffs. Loss rates have beenhigher on credit cards than on closed-end loans,and a substantial rise in credit-card losses appar-

• . ' ! ] M i ! l ' . i ! U ! .

; ! • • ! - i r , i , V ' . i l i

Type of credit1979

• . ! ( ! o n l . t ; ' • ( < ! : n ! • a i U t n ; - .

1980 1981 1982 1983 1984 1985 1986

Installment creditNet earningsCredit losses

Bank-card creditNet earningsCredit losses

2.20.55

1.801.75

1.34.83

-1.782.35

1.63.66

1.332.15

2.83.55

2.891.72

3.20.42

2.461.21

2.85.38

3.741.09

SOURCE. Federal Reserve Bank of New York, Functional Cost Analysis, annual issues.

2.74.39

3.991.68

2.62.61

3.282.23


ently accounted for most of a drop in profitabilityin 1986. On the whole, however, for this type oflending also, changes in net earnings do notappear closely related to the pattern of creditlosses.

In trying to make the leap from statisticalevidence about how bankruptcies affect profits tothe long-run adjustments in rates and creditterms that are indicated by theory, considerationof the circumstances in which lenders have tomake their pricing and marketing decisions maybe helpful. A surge in bankruptcies would tend toreduce profits by causing larger writeoffs—but,as just discussed, the size of any drop in profitswould be rather small, making a creditor's re-sponse more problematic. For instance, a lenderfirst would have to decide whether an observeddecline in net earnings from, say, 1.65 percent to1.55 percent, was a development to which aspecific response was needed, and would thenhave to determine whether the worsened perfor-mance was attributable to bankruptcies ratherthan to some other factor.

If bankruptcy were in fact isolated as a causeof the increased writeoffs, the creditor wouldhave to choose among several possible re-sponses: raise interest rate quotations across theboard, set higher minimum standards to qualifyfor loans, increase collateral requirements, orperhaps try to identify potential bankrupts moreprecisely so they can be weeded out. The lastresponse would entail direct costs of its own, andthe other alternatives could have undesirablecompetitive consequences. For instance, unlessother credit suppliers also opted to nudgetheir interest rates up, a price-raising creditormight find itself losing its most creditworthyapplicants.

Another factor that may deter lenders fromresponding quickly to an increase in bankrupt-cies is that other developments in the economycan overshadow the specific effect of bankruptcytrends. For example, if money costs are falling,as they were during the mid-1980s, bottom-lineresults may be improving even if bankruptcylosses are rising. If so, a lender may deliberatelychoose to lower credit standards and tolerate ahigher loss rate because of the enhanced profit-ability of "good" loans.

/.;//< r . ' v •>n flu' IJ <>notnx

The foregoing discussion of the effects of bank-ruptcy on profitability has implications for issuesthat extend beyond the operation of a creditdepartment. Economic policymakers and regula-tors of financial institutions, for instance, mightbe concerned with the possible effects of bank-ruptcy on economic activity and on the sound-ness of lending institutions. On both counts theevidence suggests that such effects are small.With losses due to bankruptcy apparently ac-counting for between 0.1 and 0.5 percent ofvarious types of consumer receivables at banks,and with consumer lending constituting less thana fifth of total bank lending, even sharp increasesin personal bankruptcy seem unlikely to endan-ger the financial health of these institutions toany significant extent. Overall economic activitymight be constrained if financially strapped indi-viduals decided to repair their balance sheets bycutting back on their spending, or if creditorsresponded to rising bankruptcy losses by tight-ening their loan approval standards, thereby pre-venting some credit seekers from makingintended expenditures. But, as the earlierdiscussion has indicated, creditors may well havelittle incentive to change lending standards inview of the relatively small impact of bankrupt-cies on earnings and the uncertain outcome of ashift in strategy.

In practice, the principal macroeconomic useof bankruptcy statistics has been in qualitativeassessments of the financial state of the house-hold sector, in which bankruptcies serve as oneof many barometers of the primary, but harder-to-measure, concept of financial stress. Gener-ally speaking, such variables as bankruptcies andloan delinquency rates have not been very widelyor very successfully used in econometric analy-ses of consumer behavior. They are typicallyviewed as providing supplementary rather thanfundamental clues as to the prospective strengthof consumer demand. Nevertheless, the sharprise in bankruptcies since 1984 has stimulatedwider interest in the causes and consequences ofbankruptcy. The next section provides a detailedexamination of the forces that may underlie thisrecent trend.

600 Federal Reserve Bulletin D September 1988

' . ) } ; i i i l . i l i i i i v ' l i 1 - . . i i i i ! I l l ' " u u n j i ' i i o i i v i l M i n i r i J i ' b l

Number per 1,000 persons

I I I I I i I

' B a n k r u p t c i e s

I 1 I I I I

2.0

1.5

1.0

I I i1965 1970 1975 1980 1985 1988

i'l'Ci'Ni TKi'NDS: A I'lili'l'tll-n LiH/k

What is particularly noteworthy about the surgein bankruptcies since 1984 is that it has occurredduring an extended economic upswing. The ratesof increase in bankruptcy for 1985 and 1986 wereunmatched in any other year since 1950 that wasnot a recession year. Many observers have notedthe unevenness of the current expansion, how-ever, citing persistently distressed conditions inthe "oil patch" states and, until very recently,the centers of heavy manufacturing in the Mid-west. Such regions could be generating a highvolume of personal bankruptcies despite the na-tion's general prosperity.

In fact, the number of bankruptcies has risenmost rapidly in the major oil-producing states.On the other hand, subtracting these states fromthe total still leaves a very rapid rate of increasenationally. Between the second quarters of 1985and 1986, for instance, bankruptcies increased 36percent nationally, while soaring 62 percent infive oil patch states (table 4). Yet, when thesefive states were excluded from the calculations,the growth in bankruptcies still topped 30 percentbetween the two quarters. In fact, nearly three-

fourths of all states experienced increases inbankruptcy of more than 25 percent over thatperiod. Thus the recent surge does not appearattributable in any significant way to specialproblems in specific regions.

Several of the quantitative studies discussedhere cited rapid growth in consumer debt as akey factor underlying rapid growth in bankrupt-cies. Such results, however, were dominated bythe sharp upward movements in both debt andbankruptcy for nearly two decades after WorldWar II; movements in debt (relative to income)and bankruptcies (per capita) were less closelycorrelated after the mid-1960s (chart 2). Both thedebt-burden measure and bankruptcies per cap-ita fluctuated around flat trendlines during the1970s, with little uniformity in the size or timingof movements in the two series. Such diver-gences might indicate an inherently weak rela-tionship between debt and bankruptcy. Or theymight mean only that the relationship is inoper-ative below certain key levels or rates of increasein the burden of debt on income. The linkagebetween aggregate debt and bankruptcy couldstill be strong beyond some threshhold level ofdebt burden, even though it is likely to be ob-

Bnnki upk 'k 's III Ihi' United Stales ami m maior oil producing status

Item

U.S. totalFive "oil patch" states'Total, less oil patch states. . . .

1985:2

84,2438,428

75,815

Number of cases

1986:2

114,38413,682

100,702

1987:2

122,68916,399

106,290

Percent change

1985:2-1986:2 1986:2-1987:2

35.8 7.362.3 19.932.8 5.5

1. Oklahoma. Texas, Louisiana, Colorado, and Wyoming.SOURCE. Administrative Office of the U.S. Courts.


scured by statistical tests covering periods whengrowth in debt has been subdued.

But, as pointed out, the aggregate debt-to-income ratio broke out of its meandering patternand climbed quite sharply between 1984 and1988. It rose from the level of around 14 percentthat had held during most of the previous decade,to a record 19 percent by mid-1987. Thus, onceagain, during the current business expansion, arapid rise in bankruptcies and a strong upsurge indebt burden have occurred together. This corre-spondence in itself hardly proves that a closecausal connection exists, but, with unemploy-ment trending downward and household wealthand incomes growing substantially during theperiod, the growth of debt appears to be the onemajor macroeconomic force that moved in adirection consistent with increases in bankrupt-cies.

Aggregate figures on debt can mask importantdistributional features that may affect bank-ruptcy rates. Findings from two major surveys ofconsumer finances shed some light on thisissue.19 One fact these findings point up is thatdebt is concentrated among people with theincome and assets to cover it. Nevertheless,between the two survey years of 1983 and 1986,a large increase occurred in the proportion ofdebt that was held by people with high ratios ofdebt to income (40 percent or higher). Theheavily indebted category held 7 percent of thedebt covered in 1983's survey, but those whowere in that category in 1986 held 16 percent, achange that suggests that the pool of potentialbankrupts may have been considerably larger inthe latter year. Only about half of the high-debtrespondents in 1986 had asset holdings (includinghome equity) large enough to fully retire theirdebts—considerably less than the 80 percent ofall debtors whose assets provided full coverageof debts in 1983.

Changing attitudes toward bankruptcy may beanother factor that helps to account for theaccelerated pace of bankruptcy filings. This hy-pothesis is not readily testable, however. Attitu-dinal changes are difficult to measure, and be-cause they generally occur gradually, areunlikely to cause sudden shifts in behavior, suchas characterized the course of bankruptcy filingsin 1985-86. On the other hand, a gradual redirec-

tion over the years in attitudes toward bank-ruptcy could have laid the groundwork for amore pronounced response to some other trigger-ing variable, such as debt burden, whenever thatvariable happened to move in a particular way.

The evidence for changing attitudes towardbankruptcy is largely circumstantial. However,several societal developments have seemed todiminish the stigma that once attached to bank-ruptcy. The simple fact that consumer credit ismore widely used today has made bankruptcyless rare, and therefore has rendered the bank-rupt individual a less conspicuous figure. Cer-tainly, too, the many revisions in the laws andregulations concerning debtor rights, from theTruth-in-Lending Act, to restrictions on collec-tion tactics of creditors, to the Bankruptcy Re-form Act of 1978 itself, have fostered the notionthat bankruptcy is not necessarily a shamefulprocess resulting from personal failings, but of-ten a perfectly respectable means of handling asituation for which the debtor may be largelyblameless. By the same token, the laws them-selves may be a reflection of changed attitudes.

Advertising by lawyers—which was made le-gally permissible in 1977—also has been cited bysome commentators as a possible stimulant tobankruptcies. Measurement problems also makethis notion difficult to test empirically, but Peter-son and Aoki attempted to do so by constructinga variable based on a count of the number ofnewspaper ads by bankruptcy attorneys in vari-ous localities. In the two quarters they studied,the variable did not help to explain differences inbankruptcy rates among states; nonetheless, theproposition seems reasonable that such advertis-ing helps create a climate in which the declara-tion of bankruptcy is more readily seen as alegitimate response to financial distress.

Other social factors could be contributing atleast in a small way to the rise in bankruptcies.Some surveys of individual bankrupts have sug-gested that marital problems often play a role inbankruptcy decisions, and the divorce rate—aconcrete, though perhaps imperfect, measure ofsuch problems—rose steadily in the 1960s and1970s. Inclusion of the national divorce rate byShepard in his model of bankruptcy did notenhance the model's explanatory power, but twoother studies have found differences in divorce


rates among states to help account for interstatedifferences in the number of bankruptcies percapita.20 In any case, stability in the overalldivorce rate since 1980 seems to belie any notionthat a sudden worsening of marital relationsmight account for the bankruptcy activity inrecent years.

Paradoxically, the trend toward two-earnerfamilies might provide some marginal boost tothe likelihood of bankruptcy. If people base thelevels of their spending and borrowing on thetotal amount of their dual incomes, interruptionof either income stream could jeopardize a fami-ly's financial stability. On the other hand, it couldbe argued, multiple sources of income reduce therisk that any single employment problem willdevastate a family's financial position. A lotwould depend therefore on whether a familytreated a second income as a buffer or used it tosupport proportionally higher levels of spendingand debt.

In sum, the rise in bankruptcies since 1984seems most readily attributable to the large ex-pansion of consumer debt, which has boosted the

aggregate indebtedness of households from 14 to19 cents per dollar of disposable income. Alessening of the stigma of bankruptcy and theevolution of a legal structure favorable to bank-rupts have helped establish a setting in whichbankruptcy may be more readily embraced byfinancially strapped households.

Whether the resort to bankruptcy has becomefrequent enough to provoke a curtailment oflending seems doubtful considering the still smallimpact of bankruptcy on profit margins and theabsence of any evidence that creditors havetightened loan standards. Moreover, the stabilityof the debt-to-income ratio since its peak in early1987 provides some hope of moderation in bank-ruptcy increases—indeed, last year's 10 percentrise (and an equivalent rate of increase early thisyear) already represents considerable abatementfrom the previous two years. Nevertheless, thepossibility that rising numbers of bankruptcieswill begin to affect lending or spending patternscannot be dismissed, particularly if the currentstrength in employment and household net worthshould wane.

1. The discussion of debt in this article is limited toconsumer debt, although home mortgage debt has also grownsubstantially since World War II. However, insofar as amortgage usually represents acquisition of an appreciatingasset and the mortgage lender's lien on the property is notcompromised by a mortgagee's bankruptcy, mortgage debt isseldom a precipitating cause of bankruptcy. Moreover, toinclude mortgage debt in a measure of debt burden withouttaking account of rent payments in some fashion would tendto portray the household sector's financial situation as wors-ening whenever a shift away from renting to homeownershipwas taking place. On the whole, it seemed best to comparebankruptcy trends with a form of debt that was generallyunsecured or eollateralized by depreciating assets, a practicefollowed in most of the research reviewed later in thisarticle.

2. National bankruptcy statistics are compiled by theAdministrative Office of the U.S. Courts from case countsprovided by each district court.

3. At the same time, the code contained an overrideprovision that /permitted states to opt out of the federalexemptions within a two-year period by enacting new legis-lation of their own. In all, 32 states exercised this right. Thenew state exemptions were generally less liberal than thefederal standard, but frequently more liberal than the previ-ous state exemption had been.

4. Frederick C. Yeager, "Personal Bankruptcy and Eco-

nomic Stability," Southern Economic Journal, vol. 41 (July1974), pp. 96-102.

5. Vincent P. Apilado, Joel J. Dauten, and Douglas E.Smith, "Personal Bankruptcies," Journal of Legal Studies,vol. 7 (June 1978), pp. 371-91.

6. William J. Boyes and Roger L. Faith, "Some Effects ofthe Bankruptcy Reform Act of 1978," Journal of Law andEconomics, vol. 29 (April 1986), pp. 139-49; and CharlieCarter, "The Surge in Bankruptcies: Is the New Law Re-sponsible?" Federal Reserve Bank of Atlanta, EconomicReview, vol. 67 (January 1982), pp. 20-30.

7. Richard L. Peterson and Kiyomi Aoki, "BankruptcyFilings Before and After Implementation of the BankruptcyReform Law," Journal of Economics and Business, vol. 36(February 1984), pp. 95-105.

8. By the period studied by Peterson and Aoki, the gar-nishment process had been made generally less onerous thanbefore both by provisions in federal law that took effect in1970 and by widespread revisions at the state level. Theprincipal changes reduced the proportion of a debtor's wagesthat could be garnished and prevented employers from firingworkers because their wages were subjected to garnishment.Some states prohibited garnishment entirely. With generallymore lenient practices and with less variation among states,it is not surprising that garnishment laws were less of a factorin explaining state-level differences in bankruptcies in thePeterson-Aoki study.

9. Lawrence Shepard, "Personal Failures and the Bank-ruptcy Reform Act of 1978," Journal of Law and Economics,vol. 27 (October 1984), pp. 419-37.


10. While the statistical results were not inconsistent withsuch a thesis, the strong time trends characterizing bothbankruptcies and transfer payments could reflect coincidenceas well as causation. And on strictly theoretical grounds, agenerous system of transfer payments might be expected toserve less as a safety net to make people more comfortableabout bankruptcy than as a buffer to help them avoid bank-ruptcy.

11. K.J. Kowalewski, "Personal Bankruptcy: Theory andEvidence," Federal Reserve Bank of Cleveland, EconomicReview (Spring 1982), pp. 1-29.

12. Another utility-maximization model of bankruptcychoice is presented in Michelle J. White, "Personal Bank-ruptcy Under the 1978 Bankruptcy Code: An EconomicAnalysis," Indiana Law Journal, vol. 63 (1987-88), pp. 1-53.White's incorporation of economic variables is less extensivethan Kowalewski's, but her examination of legal effects ismore direct. In contrast to Kowalewski's aggregate time-series approach, White's model examines differences amongcounties in bankruptcies per capita, a framework that sheuses to study the effects of different levels of asset exemp-tions and to look at straight bankruptcy and wage-earnerplans separately. One conclusion of White's study is that thenumber of bankruptcies responds about equally to differencesof comparable magnitudes in exemption levels and in unem-ployment rates.

13. Robert Dolphin, Jr., "An Analysis of Economic andPersonal Factors Leading to Consumer Bankruptcy," Occa-sional Paper 15 (Michigan State University, Graduate Schoolof Business Administration, Bureau of Business and Eco-nomic Research, 1965); and Grant L. Misbach, "PersonalBankruptcy in the United States and Utah," (MBA thesis,University of Utah, College of Business, May 1964).

14. Andrew F. Brimmer, Public Policy and the EconomicImplications of Personal Bankruptcies, in Hearings on theBankruptcy Reform Act of 1978, before the Subcommittee on

Courts of the Senate Judiciary Committee, 97 Cong. 1 Sess.(Government Printing Office, 1981), pp. 6-38; Credit Re-search Center in cooperation with Arthur D. Little, Inc. andOpinion Research Corporation, Consumers' Right to Bank-ruptcy: Origins and Effects, Consumer Bankruptcy Study,Monograph 23 (Purdue University, Krannert GraduateSchool of Management, Credit Research Center, 1982), vol. 1and A. Charlene Sullivan, Personal Bankruptcy: Causes,Costs and Benefits, Consumer Bankruptcy Study, Mono-graph 24 (Purdue University, Krannert Graduate School ofManagement, Credit Research Center, 1982), vol. 2.

15. David T. Stanley and Marjorie Girth, with the collab-oration of Vern Countryman and others, Bankruptcy: Prob-lem, Process, Reform (Brookings Institution, 1971).

16. Federal Reserve statistics on consumer credit covercommercial banks, finance companies, credit unions, savingsinstitutions (savings and loans, federal savings banks, andmutual savings banks), retail stores, and gasoline companies.

17. American Bankers Association, Retail Bank CreditReport, issues for 1981 through 1987.

18. Federal Reserve Bank of New York, Functional CostAnalysis, annual issues.

19. The surveys were conducted in 1983 and 1986 by theSurvey Research Center at the University of Michigan onbehalf of the Federal Reserve and other sponsoring federalagencies, under the title "Survey of Consumer Finances."Results summarized here were presented in Robert B. Avery,Gregory E. Elliehausen, and Arthur B. Kennickell,"Changes in Consumer Installment Debt: Evidence from the1983 and 1986 Surveys of Consumer Finances," FEDERALRESERVE BULLETIN, vol. 73 (October 1987), pp. 761-78.

20. See White, "Personal Bankruptcy," and A. CharleneSullivan and Debra Drecnik Worden, "The Law, the Econ-omy, and Consumer Demand for Debt Relief under theBankruptcy Code" (Purdue University, Krannert GraduateSchool of Management, no date).

604

Industrial Production

Released for publication July 15

Industrial production increased 0.4 percent inJune after having risen a revised 0.5 percent inMay. The gain in June resulted from continuedstrength in business equipment as well as a surgein electricity output, primarily for air condition-ing to combat the extreme heat. Excluding elec-tricity, output of consumer goods and materials

was little changed. At 136.6 percent of the 1977annual average, the total index in June was 5.8percent higher than it was a year earlier, and forthe second quarter, production advanced 43Apercent at an annual rate.

In market groups, production of consumergoods rose only slightly in June despite the largeincrease in electricity for residential use. Produc-tion of nondurable consumer goods excluding

Ratio scale, 1977 = 100

140

120

100

80

60

_ TOTAL

1

INDEX

s*—i

_ MANUFACTURING

-

1

y

i

- CONSUMER GOODS

:

—*

~ MOTOR

L-

1

/

1

I

I

1

Nondurable

Durable

1

Nondurable

Durable

1

VEHICLES AND PARTS

y^-A/

/

i 1 1

1

-

1

-

• • —

-

y -

-

_

1

1982 1984 1986 1988

140

120

100

80

140

120

100

80

160

140

120

100

80

-

—

r—^i

Products-^*-——

y Materials

1 1 1

_ MATERIALS

-

1

Nondurable Durable

f_y v ^ \ _^ Energy

1 1 1

- INTERMEDIATE PRODUCTS

-

— ^

Business supplies _^»»

^ '

' Construction supplies

1 1 1

-

\ 1

^ • ^ ^

1 1

. / • —

-

1 1

FINAL PRODUCTSi— Defense and space

-

1

^^-y"^ Business equipment

•f~r Consume

1 1 1

r goods

1 I

200

180

160

140

120

100

80

1982 1984 1986 1988

All series are seasonally adjusted. Latest figures: June.

605

Group

1977 = 100

1988

May June

Percentage change from preceding month

1988

Feb. Mar. Apr. May June

Percentagechange,

June 1987to June

1988

Major market groups

Total industrial production

Products, totalFinal products

Consumer goodsDurableNondurable

Business equipment..Defense and space

Intermediate products..Construction supplies

Materials

ManufacturingDurableNondurable

MiningUtilities

136.1

144.6143.4132.5125.4135.1156.5187.1149.0137.3124.5

136.6

145.0143.8132.7125.5135.3157.3187.9149.3136.7125.2

.0

.5

.3

.1- 1 . 0

.4

.8

.2

.9

.6- .7

.2

.2

.1-.1- .2-.1

.6- .6

.3- .3

.3

.5

.2

.4

.52.3-.2

.8-.7-.5

.1

.9

.5

.4

.6

.61.8.1

1.3- .8-.2-.1

.7

.4

.3

.3

.1

.0

.1

.5

.4

.2- .4

.6

Major industry groups

141.6141.2142.1103.4111.8

5.8

5.25.54.36.93.49.1- . 44.24.06.8

141.9141.7142.2104.0114.7

.1

.4- .2

-1.7.3

.4

.3

.51.2

-2.0

.5

.6

.32.1

-2.2

.6I.I

- . 1-1.4

.9

.2

.3

.1

.62.6

5.97.43.94.94.9

N O T E . Indexes are seasonally adjusted.

electricity was sluggish. Auto assemblies in June,at an annual rate of 7.5 million units, were thesame as in May. Production of light trucks, whilestill at a high level, declined last month. Outputof home goods edged up, but has changed little,on balance, since the end of last year. In con-Total industrial production—RevisionsEstimates as shown last month and current estimates

Month

MarchAprilMayJune

Index (1977=100)

Previous Current

Percentage changefrom previous

months

Previous Current

134.7 134.7 .2 .2135.5 135.4 .6 .5136.0 136.1 .4 .5

136.6 . . . .4

trast, production of business equipment contin-ued to post solid gains in June, with strength inall major components except construction, min-ing, and farm machinery.

Output of construction supplies remainedweak for the fourth successive month. Produc-tion of durable materials rose slightly in Juneafter two months of rapid advances. Nondurablematerials were unchanged as chemicals rose fur-ther, but textiles and paper declined.

In industry groups, manufacturing output rose0.2 percent in June. Durable manufacturing wasup 0.3 percent, with fabricated metals and elec-trical and nonelectrical machinery registering thelargest gains. Production at utilities, mainly elec-tric, was up 2.6 percent, and mining output rose0.6 percent.

Statement to Congress

607

Statement by Alan Greenspan, Chairman, Boardof Governors of the Federal Reserve System,before the Committee on Banking, Housing, andUrban Affairs of the U.S. Senate, July 13, 1988.

I appreciate this opportunity to review with yourecent and prospective monetary policy and theeconomic outlook. I would also like to provide abroader perspective by discussing in some detailour nation's longer-term economic objectives,the overall strategy for fiscal and monetary poli-cies needed to reach those objectives, and theappropriate tactics for implementing monetarypolicy within that strategic framework.

THE ECONOMIC SETTING AND MONETARYPOLICY SO FAR IN 1988

The macroeconomic setting for monetary policyhas changed in some notable respects since Itestified last February. At that time, the fullaftereffects of the stock market plunge on spend-ing and financial markets were still unclear.While most members of the Federal Open Mar-ket Committee were forecasting moderategrowth, in view of rapid inventory building andsome signs of a weakening of labor demand, thepossibility of a decline in economic activity couldnot be ruled out. To guard against this outcome,in the context of a firmer dollar on exchangemarkets, the Federal Reserve undertook a fur-ther modest easing of reserve pressures in lateJanuary, which augmented the more substantialeasing after October 19. Short-term interest ratescame down another notch, and, with a delay,helped to push the monetary aggregates higherwithin their targeted annual ranges.

In the event, the economy proved remarkablyresilient to the loss of stock market wealth.Economic growth remained vigorous through thefirst half of the year. Continuing brisk advancesin exports, together with moderating growth inimports, supported expansion in output, espe-

cially in manufacturing. Some strengthening alsowas evident in business outlays for equipment,especially computers, and consumer purchasesof durables, including autos.

Financial markets also returned to more nor-mal functioning. Although trading volumes didnot regain precrash levels in many markets, pricevolatility diminished somewhat and quality dif-ferentials stayed considerably narrower than inthe immediate aftermath of the stock marketplunge. In response, the Federal Reserve gradu-ally was able to restore its standard procedure ofgearing open market operations to the intendedpressure on reserve positions of depository insti-tutions. We thereby discontinued the procedureof reacting primarily to day-to-day variations inmoney market interest rates that had beenadopted right after the stock market break.

As the risks of faltering economic expansionand further financial market disruptions dimin-ished, the dangers of intensified inflationary pres-sures reemerged. Utilization of labor and capitalreached the highest levels in many years, andhints of acceleration began to crop up in wageand price data. Strong gains in payroll employ-ment that continued through the spring combinedwith slower growth in the labor force to lower theunemployment rate about V* percentage point,even before the strong labor market report forJune; the industrial capacity utilization ratemoved up as well. In part reflecting the payrolltax increase, broad measures of hourly compen-sation picked up somewhat in the first quarter.Prices for a wide range of domestic and importedindustrial materials and supplies rose even moresteeply than they did last year. The price inflationof finished goods has not reflected this step-up inprice increases for intermediate goods, in part asproductivity gains kept unit labor costs undercontrol. Even so, continued increases in materi-als prices at the recent pace were seen as point-ing to a potential intensification in inflation moregenerally, since based on historical experience


such increases have tended to show through tofinished goods prices.

In these circumstances, the Federal Reservewas well aware that it should not fall behind inestablishing enough monetary restraint to effec-tively resist these inflationary tendencies. TheSystem took a succession of restraining stepsfrom late March through late June. The shortest-term interest rates gradually rose to levels nowaround highs reached last fall. Responding aswell to the unwinding of a tax-related buildup inliquid balances, M2 and M3 growth slowed no-ticeably after April.

In contrast to the shortest-maturity interestrates, long-term bond and mortgage rates, thoughalso above February lows, still remain well be-low last fall's peaks. The timely tightening ofmonetary policy this spring, along with percep-tions of better prospects for the dollar in foreignexchange markets in light of the narrowing in ourtrade deficit, seemed to improve market confi-dence that inflationary excesses would beavoided. Both bond prices and the dollar ralliedin June despite increases in interest rates inseveral major foreign countries and jumps insome agricultural prices resulting from thedrought in important growing areas.

THE ECONOMIC OUTLOOK ANDMONETARY POLICY THROUGH 1989

The monetary actions of the first half of the yearwere undertaken so that economic expansioncould be maintained, recognizing that to do soadditional price pressures could not be permittedto build and that progress toward external bal-ance had to be sustained. The projections ofFOMC members and nonvoting presidents indi-cate that they do expect economic growth tocontinue and inflation to be contained.

The central tendency of FOMC members' ex-pectations of 23/4 to 3 percent for real growth ofGNP over the four quarters of this year implies adeceleration over the rest of the year to a pacemore in line with their expectations of realgrowth of 2 to 2'/2 percent over 1989 and with thelong-run potential of the economy. The droughtwill reduce farm output for a time, and it isimportant that nonfarm inventory accumulationslow before long if we are to avoid a troublesome

imbalance. Still, further gains in our internationaltrade position should continue to provide a majorstimulus to real GNP growth through next year,reflecting the lagged effects of the decline in theexchange value of the dollar through the end oflast year. Although the month-to-month patternin our trade deficit can be expected to be erratic,the improvement in the external sector on bal-ance over time is expected to replace much of thereduced expansion in domestic final demandsfrom our consumer, business, and governmentsectors.

Employment growth is anticipated to be sub-stantial, though some updrift in the unemploy-ment rate may occur over the next year and ahalf. Capacity utilization could well top out soon,as growth in demands for manufactured goodsslows to match that of capacity.

Considering the already limited slack in avail-able labor and capital resources, a leveling of theunemployment and capacity utilization rates isessential if more intense inflationary pressuresare to be avoided in the period ahead. Otherwise,aggregate demand would continue growing at anunsustainable pace and would soon begin tocreate a destabilizing inflationary climate. Supplyconditions for materials and labor would tightenfurther, and costs would start to rise more rap-idly; businesses would attempt to recoup profitmargins with further price hikes on final goodsand services. These faster price rises would, inturn, foster an inflationary psychology, cut intoworkers' real purchasing power, and prompt anattempted further catchup of wages, setting inmotion a dynamic process in which neither work-ers nor businesses would benefit. The hard-wongains in our international competitiveness wouldbe eroded, with feedback effects depressing theexchange value of the dollar. Excessive domesticdemands and inflation pressures in this country,with its sizable external deficit, would be disrup-tive to the ongoing international adjustment oftrade and payments imbalances.

Not only the reduced slack in the economy butalso several prospective adjustments in relativeprices have accentuated inflation dangers. One isthe upward movement of import prices relativeto domestic prices, which is a necessary part ofthe process of adjustment to large imbalances ininternational trade and payments. Another is the

Statement to Congress 609

recent drought-related increases in grain andsoybean prices. It is essential that we keep theseprocesses confined to a one-time adjustment inthe level of prices and not let them spill over to asustained higher rate of increase in wages andprices. Elevated import and farm prices must beprevented from engendering expectations ofhigher general inflation, with feedback effects onlabor costs. A more serious long-run threat toprice stability could come from government ac-tions that introduced structural rigidities andincreased costs of production. Protectionist leg-islation, inordinate hikes in the minimum wage,and other mandated programs that would imposecosts on U.S. producers would adversely affecttheir efficiency and international competitive-ness.

The costs to our economy and society ofallowing a more intense inflationary process tobecome entrenched are serious. As the experi-ence in the past two decades has clearly shown,accelerating wages and prices would have to becountered later by quite restrictive policies, withunavoidably adverse implications for productionand employment. The financial health of manyindividual and business debtors, as well as ofsome of their creditors, then would be threat-ened. The long-run costs of a return to higherinflation and the risks of this occurring undercurrent circumstances are sufficiently great thatFederal Reserve policy at this juncture might bewell advised to err more on the side of restric-tiveness rather than of stimulus.

We believe that monetary policy actions todate, together with the fiscal restraint embodiedin last fall's agreement between the Congress andthe administration, have set the stage for contain-ing inflation through next year. The central ten-dency of FOMC members' expectations for in-flation in the GNP deflator ranges from 3 to 33/4percent over this year to 3 to 4'/2 percent nextyear. But in one sense the GNP deflator under-states this year's rate of inflation, and the com-parison with next year overstates the pickup.The deflator represents the average price of finalgoods and services produced in the United Statesor, equivalently, domestic value added, usingcurrent quantity weights. This measure was arti-ficially held down in the first quarter by a shift inthe composition of output; especially by the

surge in sales of computers whose prices havedropped sharply since the 1982 base year usedfor constructing the deflator. Indeed, if the de-flator were indexed with a 1987 base year, itwould have risen appreciably faster in the firstquarter.

Another understatement of inflation in the de-flator this year arises from its exclusion of im-ported goods, which are not directly encom-passed because they are produced abroad. Inpart because import prices have continued to risesignificantly faster than prices of domesticallyproduced goods, consumer price indexes haveincreased more than the GNP deflator.

The FOMC believes that efforts to containinflation pressures and sustain the economic ex-pansion would be fostered by growth of themonetary aggregates over 1988 well within theirreaffirmed annual ranges of 4 to 8 percent, fol-lowed by some slowing in money growth over thecourse of next year. M2 should move close to themidpoint of its range by late 1988 if depositorsreact as expected to the greater attractiveness ofmarket instruments, compared with liquid moneybalances, that was brought about by recent in-creases in short-term market rates relative todeposit rates. M3 could end the year somewhatabove its midpoint, though comfortably within itsrange if depository institutions retain their recentshare of overall credit expansion. The debt ofnonfinancial sectors, which so far this year hasbeen near the midpoint of its reaffirmed monitor-ing range of 7 to 11 percent, is anticipated to postsimilar growth through the year-end.

For 1989, the FOMC has underscored its in-tention to encourage progress toward price sta-bility over time by lowering its tentative rangesfor money and debt. We have preliminarily re-duced the growth range for M2 by 1 full percent-age point, to 3 to 7 percent; last February, theFOMC also had reduced the midpoint of the 1988range for M2 by 1 percentage point from that for1987. We have adjusted the tentative 1989 rangefor M3 downward by Vz percentage point, to VAto Vh percent. This configuration is consistentwith the observed tendency for M3 velocity overtime to fall relative to the velocity of M2; overthe last decade, the Federal Reserve's rangesfrequently allowed for faster growth of M3 thanof M2. The monitoring range for domestic nonfi-


nancial debt for 1989 also has been lowered V2percentage point to a tentative 6V2 to IOV2 per-cent.

The specific ranges chosen for 1989 are, asusual, provisional, and the FOMC will reviewthem carefully next February, in light of inter-vening developments. Anticipating today howthe outlook for the economy in 1989 will appearnext February is difficult, and a major reassess-ment of that outlook would have implications forappropriate money growth ranges for that year.Unexpectedly strong or weak economic expan-sion or inflation pressures over the next sixmonths also could have implications for thebehavior of interest rates and their prospects for1989. The sensitivity of the monetary aggregatesto movements in market interest rates means thatthe appropriate growth next year in M2, M3, anddebt could seem different next February fromnow, necessitating a revision in the annualgrowth ranges. As the aggregates have becomemore responsive to interest rate changes in the1980s, judgments about possible ranges for thenext year necessarily have become even moretentative and subject to revision.

THE PERSISTENT U.S. EXTERNAL ANDFISCAL IMBALANCES

Despite the changes in the economic setting overthe last six months, other features of the macro-economic landscape remain much the same.Most notable are the continuing massive deficitsin our external payments and internal fiscal ac-counts. As a nation, we still are living wellbeyond our means; we consume much more ofthe world's goods and services each year than weproduce. Our current account deficit indicateshow much more deeply in debt to the rest of theworld we are sliding each year.

The consequence of this external imbalancewill be a steady expansion in our external debtburden in the years ahead. No household orbusiness can expect to have an inexhaustiblecredit line with borrowing terms that stay thesame as its debt mounts relative to its wealth andincome. Nor can we as a nation expect ourforeign indebtedness to grow indefinitely relativeto our servicing capacity without additional in-

ducements to foreigners to acquire dollar as-sets—either higher real interest returns, or acheaper real foreign exchange value for dollarassets, or both. To be sure, such changes inmarket incentives would have self-correcting ef-fects over time in reducing the imbalance be-tween our domestic spending and income.Higher real interest rates would curtail domesticinvestment and other spending. A lower realvalue of the dollar would make U.S. goods andservices relatively less expensive to both U.S.and foreign residents, damping our spending onimports out of U.S. income and boosting ourexports.

But simply sitting back and allowing such aself-correction to take place is not a workablepolicy alternative. Trying to follow such a coursecould have severe drawbacks now that our econ-omy is operating close to effective capacity andpotential inflationary pressures are on the hori-zon. The time is hardly propitious to discourageinvestment in needed plant and equipment, toadd further impulses for import price hikes ontop of the upward tendencies already in themaking, or to push our export industries as wellas import-competing industries to their capacitylimits.

Fortunately, we have a better choice for right-ing the imbalance between domestic spendingand income—one over which we have directcontrol. That is to resume reducing substantiallythe still massive federal budget deficit, whichremains the most important source of dissavingin our economy. The fall in the dollar that wehave already experienced over the past fewyears, even allowing for the dollar's appreciationfrom the lows reached at the end of last year, hasset in motion forces that should continue tonarrow our trade and current account deficits inthe years ahead. The associated loss of foreign-funded domestic investment is likely to adverselyaffect overall investment unless it can be re-placed by greater domestic investment financedby domestic saving. A sharp contraction in thefederal deficit appears to be the only assuredsource of augmented domestic net saving. Such afiscal cutback should help counter future tenden-cies for further increases in U.S. interest ratesand declines in the dollar, partly by instillingconfidence on the part of international investors


in the resolve of the United States to address itseconomic problems.

Fiscal restraint in the years ahead would assistin making room for the needed diversion of moreof our productive resources to meeting demandsfrom abroad. Domestic demands will have tocontinue growing more slowly than our produc-tive capacity, as seems to have been the case sofar this year, if net exports are to expand furtherwithout resulting in an inflationary overheating ofthe economy. Absent this fiscal restraint, higherinterest rates would become the only channel fordamping domestic demands if they were becom-ing excessive. If a renewed decline in the dollarwere adding further inflationary stimulus at thesame time, upward pressures on interest rateswould be even more likely. The restrictive im-pact would be felt most by the interest-sensitivesectors—homebuilding, business fixed invest-ment, and consumer durables.

In terms of federal deficit reduction, the sched-ule under the Gramm-Rudman-Hollings law is agood baseline for a multiyear strategy, and I trustthe Congress will stick with it. But we should gofurther. Ideally, we should be aiming ultimatelyat a federal budget surplus, so that governmentsaving could supplement private domestic savingin financing additional domestic investment. His-torically, the United States has not been a low-saving, low-investing economy. From the post-Civil War period through the 1920s, the UnitedStates consistently saved more as a fraction ofGNP than did Japan and Germany, and we savedmuch more as a share of GNP then than we havesince the end of World War II. A turnaround inour current domestic saving performance is es-sential to a smooth reduction in our dependenceon foreign saving, and the federal governmentshould take the lead.

It is also apparent that redressing our externalimbalances must encompass cooperative policieswith our trading partners. These partners includeboth the established industrial powers, the newlyindustrialized economies, and the developingcountries, whose debt problems must be workedthrough as part of the international adjustmentprocess.

This is the strategy that U.S. fiscal policy aswell as economic policies abroad should follow inmost effectively promoting our shared economic

objectives. The strategic role of U.S. monetarypolicy is implied by a clear statement of whatthose ultimate objectives are. We should not besatisfied unless the U.S. economy is operating athigh employment with a sustainable externalposition and above all stable prices.

High employment is consistent with steadilyrising nominal wages and real wages growing inline with productivity gains. Some frictional un-employment will exist in a dynamic labor market,reflecting the process of matching availableworkers with available jobs. But every effortshould be made to minimize both impedimentsthat contribute to structural unemployment anddeviations of real economic growth from theeconomy's potential that cause cyclical unem-ployment.

By a sustainable external position, I am refer-ring to a situation in which our foreign indebted-ness is not persistently growing faster than ourcapacity to service it out of national income. Ourinternational payments need not be in exactbalance from one year to the next, and theexchange value of the dollar need not be per-fectly stable, but wide swings in the dollar, andboom and bust cycles in our export and import-competing industries, should be avoided.

By price stability, I mean a situation in whichhouseholds and businesses in making their savingand investment decisions can safely ignore thepossibility of sustained, generalized price in-creases or decreases. Prices of individual goodsand services, of course, would still vary to equil-ibrate the various markets in our complex na-tional and world economy, and particular priceindexes could still show transitory movements.A small persistent rise in some of the indexeswould be tolerable, given the inadequate adjust-ment for trends in quality improvement andthe tendency for spending to shift toward goodsthat have become relatively cheap. But essen-tially the average of all prices would exhibit notrend over time. Price movements in these cir-cumstances would reflect relative scarcities ofgoods, and private decisionmakers could focustheir concerns on adjusting production andconsumption patterns appropriately to changingindividual prices, without being misled bygeneralized inflationary or deflationary pricemovements.


The strategy for monetary policy needs to becentered on making further progress toward andultimately reaching stable prices. Price stabilityis a prerequisite for achieving the maximumeconomic expansion consistent with a sustain-able external balance at high employment. Pricestability reduces uncertainty and risk in a criticalarea of economic decisionmaking by householdsand businesses. In the process of fostering pricestability, monetary policy also would have tobear much of the burden for countering anypronounced cyclical instability in the economy,especially if fiscal policy is following a programfor multiyear reductions in the federal budgetdeficit. While recognizing the self-correcting na-ture of some macroeconomic disturbances, mon-etary policy does have a role to play over time inguiding aggregate demand into line with the econ-omy's potential to produce. This may involveproviding a counterweight to major, sustainedcyclical tendencies in private spending, thoughwe can not be overconfident in our ability toidentify such tendencies and to determine ex-actly the appropriate policy response. In thisregard, it seems worthwhile for me to offer somethoughts on the approach the Federal Reserveshould take in implementing this longer-termstrategy for monetary policy.

THE APPROPRIATE TACTICS FORMONETARY POLICY

For better or worse, our economy is enormouslycomplex, the relationships among macroecono-mic variables are imperfectly understood, and asa consequence economic forecasting is an uncer-tain endeavor. Nonetheless, the forecasting ex-ercise can aid policymaking by helping to refinethe boundaries of the likely economic conse-quences of our policy stance. But forecasts willoften go astray to a greater or lesser degree, andmonetary policy has to remain flexible to respondto unexpected developments.

A perfectly flexible monetary policy, however,without any guideposts to steer by, can risklosing sight of the ultimate goal of price stability.In this connection, the requirement under theHumphrey-Hawkins Act for the Federal Reserveto announce its objectives and plans for growthof money and credit aggregates is a very useful

device for calibrating prospective monetary pol-icy. The announcement of ranges for the mone-tary aggregates represents a way for the FederalReserve to communicate its policy intentions tothe Congress and the public. And the undisputedlong-run relation between money growth andinflation means that trend growth rates in themonetary aggregates provide useful checks onthe thrust of monetary policy over time. It isclear to all observers that the monetary rangeswill have to be brought down further in the futureif price stability is to be achieved and thenmaintained.

But, in a shorter-run countercyclical context,monetary aggregates have drawbacks as rigidguides to monetary policy implementation. As Idiscussed in some detail in my February testi-mony, financial innovation and deregulation inthe 1980s have altered the structure of deposits,lessened the predictability of the demands for theaggregates, and made the velocities of Ml andprobably M2 over periods of a year or so moresensitive to movements in market interest rates.Movements in short-term market rates relative tosluggishly adjusting deposit rates can result inlarge percentage changes in the opportunity costsof holding liquid monetary assets. Depositor re-sponses can induce divergent growth betweenmoney and nominal GNP for a time. I might addthat it was partly these considerations that ledthe FOMC to retain the wider 4 percentage pointranges for money and credit growth for this yearand next.

Nonetheless, the demonstrated long-run con-nection of money and prices overshadows theproblems of interpreting shorter-run swings inmoney growth. I certainly do not want to leavethe impression that the aggregates have littleutility in implementing monetary policy. Theyhave an important role, and it is quite possiblethat their importance will grow in the yearsahead. Currently, the FOMC keeps M2 and M3under careful scrutiny and judges their actualmovements relative to assessments of their ap-propriate growth at any particular time. In thiscontext, these aggregates are among the indica-tors that influence adjustments to the stance ofpolicy, both at regular FOMC meetings andbetween meetings, as the FOMC's directive tothe Federal Reserve Bank of New York's Trad-


ing Desk indicates. The FOMC also regularlymonitors a variety of other monetary aggregates.At times in recent years, we have intensivelyexamined the properties of several alternativemeasures and reported the results to the Con-gress. These measures have included Ml, Ml-A(Ml less NOW accounts), monetary indexes, andmost recently the monetary base.

An analysis of the monetary base appears as anappendix to the Board's Humphrey-Hawkinsreport.1 This aggregate, essentially the sum ofcurrency and reserves, did not escape the sharpvelocity declines of other money measures ear-lier in the 1980s. Its velocity behavior stemmedfrom relatively strong growth in transaction de-posits compared with that of GNP, which wasmirrored in the reserve component of the base.In this sense, some of the problems plaguing Mlalso have shown through to the base, though insomewhat muted form. Moreover, the three-fourths share of currency in the base raises somequestion about the reliability of its link to spend-ing. The high level of currency holdings—$825per man, woman, and child living in the UnitedStates—suggests that vast, indeterminateamounts of U.S. currency circulate or arehoarded beyond our borders. Indeed, over thelast year and a half, currency has grown notice-ably faster than would have been expected fromits historical relationships with U.S. spendingand interest rates.

Although the monetary base has exhibitedsome useful properties over the past three dec-ades as a whole, the FOMC's view is that thebehavior of the monetary base has not consis-tently added to the information provided by thebroader aggregates, M2 and M3. The Committeeaccordingly has decided not to establish a rangefor this aggregate, although it has requested thestaff to intensify research into the ability of

I. See "Monetary Policy Report to the Congress," FED-ERAL RESERVE BULLETIN, vol. 73 (August 1988), pp. 517-33.

various monetary measures to indicate long-runprice trends.

Because the Federal Reserve cannot reliablytake its cue for shorter-run operations solelyfrom the signals being given by any or all of themonetary aggregates, we have little alternativebut to interpret the behavior of a variety ofeconomic and financial indicators. They can sug-gest the likely future course of the economygiven the current stance of monetary policy.

Judgments about the balance of various risksto the economic outlook need to adapt over timeto the shifting weight of incoming evidence; thispoint is well exemplified so far this year, as notedearlier. The Federal Reserve must be willing toadjust its instruments fairly flexibly as thesejudgments evolve; we must not hesitate to re-verse course occasionally if warranted by newdevelopments. To be sure, we should not over-react to every bit of new information, becausethe frequent observations for a variety of eco-nomic statistics are subject to considerable tran-sitory "noise." But we need to be willing torespond to indications of changes in underlyingeconomic trends, without losing sight of theultimate policy objectives.

To the extent that the underlying economictrends are judged to be deviating from a pathconsistent with reaching the ultimate objectives,the Federal Reserve would need to make "mid-course" policy corrections. Such deviationsfrom the appropriate direction for the economywill be inevitable, given the delayed and imper-fectly predictable nature of the effects of previ-ous policy actions. Numerous unforeseen forcesnot related to monetary policy will continue tobuffet the economy. The limits of monetary pol-icy in short-run stabilization need to be borne inmind. The business cycle cannot be repealed, butI believe it can be significantly damped by appro-priate policy action. Price stability cannot bedictated by fiat, but governmental decisionmak-ers can establish the conditions needed to ap-proach this goal over the next several years. •

Chairman Greenspan presented identical testimony before the Domestic Monetary PolicySubcommittee of the House Committee on Banking, Finance and Urban Affairs, July 28, 1988.

614

Announcements

JOHN P. LA WARE: APPOINTMENT AS AMEMBER OF THE BOARD OF GOVERNORS

On May 23, 1988, President Reagan announcedhis intention to nominate John P. La Ware as amember of the Board of Governors. Mr. LaWarewas subsequently confirmed by the Senate onAugust 4 and took the oath of office, adminis-tered by Chairman Greenspan, on August 15.The text of the White House announcement ofMay 23 follows:

The President today announced his intention tonominate John P. LaWare, of Massachusetts, District1, to be a Member of the Board of Governors of theFederal Reserve System for a term of 14 years fromFebruary 1, 1988. He would succeed Henry C. Wal-lich.

Since 1978, Mr. LaWare has been Chairman andDirector of Shawmut National Corporation and Shaw-mut Bank in Boston, Massachusetts; he was namedChairman and Chief Executive Officer of both thecorporation and the bank in 1980. Mr. LaWare joinedChemical Bank & Trust Company in 1953, serving invarious capacities: Senior Vice President, Vice Presi-dent, and Assistant Secretary.

Mr. LaWare graduated from Harvard University(B.A., 1950) and the University of Pennsylvania(M.A., 1951). He was born February 20, 1928, inColumbus, Wisconsin. He served in the United StatesAir Force, 1951-53, and the New York Air NationalGuard, 1954-59. He is married, has two children, andresides in Brookline, Massachusetts.

PUBLICATION OF NEW HANDBOOK FORTHE REGULATORY SERVICE

The Federal Reserve Board announced on July 6,1988, that it will begin publication in Septemberof a new handbook to its Regulatory Service thatwill incorporate regulations, interpretations, pol-icy statements, and commentary on the pay-ments system and the Expedited Funds Avail-ability Act in a single looseleaf publication.

The Federal Reserve Regulatory Service cur-rently consists of four books—a complete service

covering all Board regulations and related materials,and three separate handbooks on securities credit(Regulations G, T, U, and X), consumer regulations(B, C, E, M, Z, AA, and BB), and regulationsrelating to monetary policy (A, D, and Q).

The new handbook will contain all Board reg-ulations governing the payments system, includ-ing Regulation J (Collection of Checks and OtherItems and Wire Transfers of Funds), and Regu-lation CC (Expedited Funds Availability), andthe Board's policy statements on payments-system risk.

Regulation CC was adopted by the Board onMay 11, 1988, and became effective on Septem-ber 1, 1988.

Subscribers to the full Regulatory Service willautomatically receive these materials as part oftheir subscriptions.

The new handbook, which will be updated on amonthly basis and will be cross-indexed, is designedto help those who must refer frequently to theBoard's regulatory material in the payments area.Cost of the new handbook will be $75 annually.Inquiries should be addressed to Publications Ser-vices, Board of Governors of the Federal ReserveSystem, Washington, D.C. 20551.

Two STUDIES ON CONTROLLING RISK INTHE PAYMENTS SYSTEM NOW AVAILABLE

The Board of Governors has issued two separatebut parallel studies regarding risk in the pay-ments system and the advantages and drawbacksof various policies for controlling this risk. Thepurpose of the two studies was to reexamine thedirection of the Board's policy on reducing riskin the payments system with the aim of refiningthe understanding of basic objectives and ofalternative policies. A Task Force on ControllingPayments-System Risk, comprising members ofthe staffs of the Board and of the Federal ReserveBanks, prepared one report, entitled Controlling

615

Risk in the Payments System. The Board'sLarge-Dollar Payments System Advisory Group,composed of senior officers of several privatedepository institutions, prepared the second re-port, entitled A Strategic Plan for ManagingRisk in the Payments System.

The Board's Payments System Policy Committeecommissioned the two studies in August 1987 aspart of its review and revision of its initial policy.The report by the Advisory Group was preparedfrom the perspective of the private sector and makesspecific recommendations. The report by theBoard's Task Force analyzes the advantages anddisadvantages of various policy options.

UPDATE TO STAFF GUIDELINES UNDERREGULATION AA

The Federal Reserve Board published on July 29,1988, the second update to its staff guidelines onthe Credit Practices Rule under Regulation AA.The updated guidelines became effective August1, 1988.

The Board's Credit Practices Rule, applicableto all banks and their subsidiaries, addresses un-fair or deceptive acts or practices in the extendingof consumer credit. The rule does not apply toloans for the purchase of real property. Banks areprohibited from using certain remedies to enforceconsumer credit obligations and from using a latecharge practice commonly referred to as "pyra-miding." The rule also provides protections forcosigners of consumer credit obligations.

list have been removed for substantially failing tomeet the requirements for continued listing; 77stocks have been removed for reasons such aslisting on a national securities exchange or in-volvement in an acquisition.

The list includes all over-the-counter securitiesdesignated by the Board pursuant to its estab-lished criteria as well as all stocks designated asNMS securities for which transaction reports arerequired to be made pursuant to an effectivetransaction reporting plan. Additional OTC secu-rities may be designated as NMS securities in theinterim between the Board's quarterly publica-tions and will be immediately marginable. Thenext publication of the Board's list is scheduledfor November 1988.

Besides NMS-designated securities, the Boardwill continue to monitor the market activity ofother OTC stocks to determine which stocksmeet the requirements for inclusion and contin-ued inclusion on the list.

EXTENSION OF COMMENT PERIOD ONSAME-DAY PAYMENT OF CHECKS

The Federal Reserve Board has extended theperiod for comment on its proposed concept ofsame-day payment for checks presented to payingbanks by private-sector collecting banks. In re-sponse to requests for additional time to preparecomments, the Board is extending the commentperiod through December 1, 1988. The proposedconcept was published on April 5, 1988, with thecomment period ending August 3, 1988.

REVISED LIST OF OTC STOCKS SUBJECTTO MARGIN REGULATIONS NOW AVAILABLE

The Federal Reserve Board published on July 22,1988, a revised list of over-the-counter (OTC)stocks that are subject to its margin regulations,effective August 8, 1988.

This revised List of Marginable OTC Stockssupersedes the list that was effective on May 9,1988. The changes that have been made in thelist, which now includes 3,147 OTC stocks, areas follows: 77 stocks have been included for thefirst time, 63 under National Market System(NMS) designation; 68 stocks previously on the

INFORMAL HEARING HELD

The Federal Reserve Board held an informalhearing on July 29, 1988, on a proposed rule toimplement the limitations placed on grandfa-thered nonbank banks by the Competitive Equal-ity Banking Act of 1987.

CHANGE IN BOARD STAFF

Anthony Cornyn, Assistant Director, Division ofBanking Supervision and Regulation, resignedeffective August 5, 1988.

Legal Developments

617

REVISION OF STAFF GUIDELINES ON THECREDIT PRACTICES RULE

The Board of Governors is revising 12 C.F.R. Part227, its Staff Guidelines on the Credit Practices Rule,Subpart B of Regulation AA (Unfair or Deceptive Actsor Practices). The rule prohibits banks and their sub-sidiaries from using certain creditor remedies in con-nection with a consumer credit obligation, from usinga late-charge practice commonly referred to as pyra-miding, and from obligating a cosigner prior to giving arequired notice explaining the cosigner's obligations.The update addresses questions on the use of multi-purpose credit documents, the acquisition of a securityinterest in household goods from a purchase-moneylender, and exemptions from the rule.

Effective August 1, 1988, 12 C.F.R. Part 227 isrevised as follows:

Section 227.13—Unfair Credit ContractProvisions

* * * * *

13(a) Confessions of Judgment

Q13(a)-2: Language limiting confession of judgmentprovision. If a bank uses multi-purpose credit con-tracts, may the bank include a confession of judgmentclause with qualifying language indicating that theclause is not applicable in a consumer purpose loan—such as, "You confess judgment to the extent the lawallows," or "This clause applies only in businesspurpose loans"?

A: No. Given the public policy purpose of the rule, abank may not have a confession of judgment clause ina consumer credit contract, even with limiting lan-guage. Therefore, when a multi-purpose form is usedfor a consumer purpose loan, the bank must cross out,blacken in, or otherwise indicate clearly the removalof the prohibited clause from the loan document.

* * * * *

13(d) Security Interest in Household Goods

Q13(d)-3a: Refinancing (new creditor)-original loanpurchase money. On the same facts as those detailedin Q13(d)-3, assume that the consumer refinances theloan with a different bank. May that bank acquire thesecurity interest of the purchase-money lender inhousehold goods without violating the rule?

A: Yes, the bank may acquire the security interest ofthe purchase-money lender without violating the rule.

Section 227.16—State Exemptions

* * * * *

Q16(b)-3. Exemptions granted. What states have beengranted an exemption from the Board's rule?

A: The state of Wisconsin was granted an exemptionfrom all provisions of the Board's rule effective No-vember 20, 1986, for transactions of $25,000 or less.The state of New York was granted an exemption fromthe cosigner provisions of the Board's rule effectiveJanuary21,1987, for transactions of $25,000 or less. Inboth Wisconsin and New York, transactions over$25,000 are subject to the Board's rule but compliancewith state law is deemed compliance with the federallaw. The state of California was granted an exemptionfrom the cosigner provisions of the Board's rule effec-tive August 1,1988. These exemptions do not apply tofederally-chartered institutions.

ORDER GRANTING AN EXEMPTION TO THESTATE OF CALIFORNIA FROM THE CREDITPRACTICES RULE

The Board of Governors is amending 12 C.F.R. Part227, its Regulation AA, to determine that the exemp-tion from the cosigner provision of the Board's CreditPractices Rule, Subpart B, requested by the state ofCalifornia will be granted with respect to state-char-tered institutions.

Effective August 1, 1988, the Board amends12 C.F.R. Part 227 as follows:


ORDER

The state of California has applied for an exemptionfrom the cosigner provision of the Board's CreditPractices Rule which became effective January 1,1986. Pursuant to section 227.16 of Regulation AA, theBoard has determined that the relevant laws of thisstate are substantially equivalent to the federal law andthat the state administers and enforces its law effec-tively. The Board hereby grants the exemption asfollows:

Effective August 1, 1988, consumer credit transactions thatare subject to the California Civil Code and California Busi-ness and Professions Code are exempt from the cosignerprovision of the Board's Credit Practices Rule, 12 C.F.R.§ 227.14. This exemption does not apply to transactions inwhich a federally chartered institution is a creditor.

ORDERS ISSUED UNDER BANK HOLDINGCOMPANY ACT

Orders Issued Under Section 3 of the BankHolding Company Act

NCNB CorporationCharlotte, North Carolina

Order Approving Acquisition of a Bank

NCNB Corporation, Charlotte, North Carolina, abank holding company within the meaning of the BankHolding Company Act (the "BHC Act") (12 U.S.C.§ 1841 et seq.), has applied for the Board's approvalunder section 3 of the BHC Act (12 U.S.C. § 1842) toacquire control of JRB Bank, National Association, abridge bank ("Bank") created by the Federal DepositInsurance Corporation ("FDIC") to acquire the assetsand assume the deposits and liabilities of First Repub-lic Bank Dallas, N.A., and other bank subsidiaries ofFirst RepublicBank Corporation, Dallas, Texas. Ap-plicant proposes to immediately enter into a manage-ment agreement with the FDIC that provides thatApplicant will operate Bank under the name NCNBTexas National Bank with full discretion over, andresponsibility for, the daily operations of Bank. Appli-cant also proposes to acquire all of the voting shares ofBank. In addition, Applicant proposes to acquireindirectly First RepublicBank International, NewYork, New York, a company organized and heldpursuant to the Edge Act (12 U.S.C. §611 e/ seq.).

On July 29, 1988, First RepublicBank Dallas, N.A.,and other bank subsidiaries of First RepublicBankCorporation were declared insolvent and the FDIC

was appointed receiver. Pursuant to section ll(i) ofthe Federal Deposit Insurance Act ("FDI Act") asamended by the Competitive Equality Banking Act of1987 (12 U.S.C. § 1821(0), the FDIC established Bankto acquire the assets and to assume the liabilities anddeposits of the closed banks. The FDIC solicited offersfor the acquisition of Bank from qualified bidderspursuant to section 13(0 of the FDI Act (12 U.S.C.§ 1823(f)). On July 29, 1988, the FDIC selected Appli-cant's bid for Bank. On the same day, the FDICadvised that Applicant had been selected as the win-ning bidder, and recommended immediate action onthis application in order to permit Bank to open andoperate without the need for liquidation. The OCC hasalso recommended approval of the transaction.

In view of this situation and the need for immediateaction to prevent the failure of the institution and toprotect the interest of Bank's depositors, it has beendetermined, pursuant to section 3(b) of the BHC Act(12 U.S.C. § 1842(b)), section 225.14 (h) of Regula-tion Y (12 C.F.R. § 225.14(h)), and section 262.3(1) ofthe Board's Rules of Procedure (12 C.F.R. § 262.3(1)),to dispense with the notice provisions of the BHC Act.

Under section 3(d) of the BHC Act (12 U.S.C.§ 1842(d)), the Douglas Amendment, a bank holdingcompany generally may not be allowed to acquirecontrol of any bank located outside of the holdingcompany's principal state of operations.1 NCNB Cor-poration, with approximately $29 billion in total assetsas of March 31, 1988, is a bank holding company thatprincipally operates in North Carolina for purposes ofthe Douglas Amendment. As noted above, Bank islocated in Texas.

Section 11(0(9) of the FDI Act (12 U.S.C.§ 1821(0(9)) specifically provides that a bank holdingcompany may acquire a bridge bank located in anotherstate, without regard to the limitations on interstatebank acquisitions contained in the Douglas Amend-ment or in any relevant state law, where the bridgebank has total assets of at least $500,000,000. See also12 U.S.C. § 1823(O(4)(A). Bank, with total assets ofapproximately $25 billion, was established by theFDIC pursuant to section 1 l(i) of the FDI Act and willbe acquired by Applicant in an assisted transaction.Accordingly, the provisions of section 3(d) of the BHCAct and of any relevant state law do not bar approvalof the proposed transaction.

In evaluating an application under section 3 of theBHC Act, the Board is required to consider the

1. A bank holding company's principal state of banking operationsis the state in which the operations of the bank holding company'sbanking subsidiaries were principally conducted on the later of July 1,1966, or the date on which the company became a bank holdingcompany.

Legal Developments 619

financial and managerial resources and future pros-pects of the companies involved, the effect of theproposal on competition, and the convenience andneeds of the communities to be served. Under theproposal, Applicant would immediately provide Bankwith new management officials, with proven manage-ment capability, and would reopen and operate Bank,which would continue to provide a full range ofservices to customers of Bank. The agreement inprinciple between Applicant and the FDIC will alsorecapitalize Bank. With respect to the financial fac-tors, note has been taken of Applicant's existingfinancial strength on a consolidated basis and Appli-cant's plans to supplement its own capital resources tosupport the new investment.

Based on these and all of the other facts of record,including the bid proposal made by Applicant andaccepted by the FDIC, the financial and managerialresources and future prospects of Applicant, its sub-sidiaries and Bank are consistent with approval of thisapplication. The benefits to the convenience and needsof the communities in Texas of maintaining Bank as aviable competitor in Texas weigh in favor of approvalof this application.

Applicant owns over 25 percent of the voting sharesof Charter Bancshares, Houston, Texas, whose banksoperate in the Houston banking market. The affiliationof Charter Bancshares and Bank will not result in asignificant increase in market concentration or haveany other significant adverse effects on competition inthe Houston banking market. In addition, while Ap-plicant maintains several offices engaged in variousnonbanking activities in Texas, there is no significantcompetition in these areas between Applicant andBank. Accordingly, consummation of the proposalwould not increase the concentration of banking re-sources or have any significant adverse effects oncompetition in Texas or any other relevant market.

Based on the foregoing and all of the facts of record,the General Counsel and the Staff Director of theDivision of Banking Supervision and Regulation havedetermined, acting pursuant to authority specificallydelegated by the Board in this case, that the applica-tion under section 3 of the Act should be, and herebyis, approved. This action is limited to approval of thetransaction according to the terms and conditions ofApplicant's bid as presented to the Board, and anysignificant change in those terms or conditions mayrequire further review by the Board. Moreover, as acondition of this Order, further investments in theequity of Bank by Applicant as permitted under theagreement in principal between Applicant and theFDIC will require the prior approval of the Board.

The acquisition of Bank by Applicant would alsoresult in the continuation of the international services

currently provided by the Edge Corporation of Bank.In light of the facts in this case, approval of thisacquisition would be in the public interest and consis-tent with the purposes of the Edge Act.

The FDIC has informed the Board that immediateaction on Applicant's proposal is necessary in order topermit Bank to open and operate as a viable competi-tor that will continue to serve its communities. In lightof these and all the facts of record in this case, theGeneral Counsel and the Staff Director of the Divisionof Banking Supervision and Regulation, acting pursu-ant to authority delegated by the Board, have deter-mined, in accordance with section ll(b) of the BHCAct, that Applicant may immediately acquire controlof Bank through the management agreement with theFDIC, and that Applicant may consummate its pro-posed investment in Bank on or after the fifth calendarday following the effective date of this Order. Thetransaction shall not be consummated later than threemonths after the effective date of this Order, unless theperiod for consummation is extended for good causeby the Board or the Federal Reserve Bank of Rich-mond under delegated authority.

By order, approved pursuant to authority delegatedby the Board, effective July 29, 1988.

MICHAEL BRADAELD

General Counsel

WILLIAM TAYLOR

Staff DirectorDivision of Banking Supervision

and Regulation

Somerset Bankshares, Inc.Somerville, Massachusetts

Order Approving Formation of a Bank HoldingCompany

Somerset Bankshares, Inc., Somerville, Massachu-setts ("Somerset"), has applied for the Board's ap-proval under section 3(a)(l) of the Bank Holding Com-pany Act of 1956, as amended (12 U.S.C. § 1842(a)(l))("BHC Act"), to become a bank holding company byacquiring all of the outstanding voting shares ofSomerset Savings Bank, Somerville, Massachusetts("Bank"), an FDIC-insured savings bank.'

Notice of the application, affording an opportunityfor interested persons to submit comments, has been

1. As an FDIC-insured institution, Bank would qualify as a "bank"under section 2(c) of the BHC Act, as amended by section 101(a) of theCompetitive Equality Banking Act of 1987, Pub. L. No. 100-86, 100Stat. 552, 554 (1987) (to be codified at 12 U.S.C. i 1841(c».


given in accordance with section 3(b) of the BHC Act,(52 Federal Register 21,739 (June 9, 1987)). The timefor filing comments has expired, and the Board hasconsidered the application and all comments receivedin light of the factors set forth in section 3(c) of theBHC Act (12 U.S.C. § 1842(c)).

Somerset is a non-operating corporation formed forthe purpose of acquiring Bank. Principals of Somersetare also principals of Bank. Bank is the 14th largestcommercial banking organization in Massachusetts,with total deposits of $378.1 million, representing lessthan one percent of total deposits in commercial banksin the state.2 This proposal represents a restructuringof existing ownership interests. Consummation of thisproposal would not result in any significant adverseeffect on the concentration of banking resources inMassachusetts.

Bank competes in the Boston banking market,3

where it is the 11th largest commercial banking orga-nization, controlling less than one percent of totaldeposits in commercial banks in the market. Principalsof Somerset and Bank are not associated with anyother financial institution located in the market. Con-summation of this transaction would not result in anysignificant adverse competitive effects in any relevantgeographic area.

The financial and managerial resources and futureprospects of Somerset and Bank are considered satis-factory and consistent with approval.

In considering the convenience and needs of thecommunity to be served, the Board has taken intoaccount the record of Bank under the CommunityReinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA")and various consumer compliance statutes. The CRArequires the federal bank supervisory agencies toencourage financial institutions to help meet the creditneeds of the local communities in which they arechartered consistent with the safe and sound operationof such institutions. To accomplish this end, the CRArequires the appropriate federal supervisory authorityto "assess the institution's record of meeting the creditneeds of its entire community, including low- andmoderate-income neighborhoods, consistent with thesafe and sound operation of the institution." TheBoard is required to "take such record into account inits evaluation" of applications under section 3 of theBHC Act.

Somerset filed its application to acquire Bank ap-proximately one year ago. Because of concern regard-ing Bank's CRA record, the Board requested that theCommonwealth of Massachusetts examine Bank todetermine the bank's compliance with the CRA andother consumer laws. The Commonwealth's examina-tion uncovered numerous violations and deficienciesin these areas, and based on these deficiencies, theCommonwealth determined that Bank's overall recordwas less than satisfactory. The examination foundviolations of certain state consumer laws and provi-sions of the Board's Regulation B. The examinationalso indicated that Bank had not instituted proceduresto determine adequately the credit needs of its com-munity. For example, Bank was unable to documentits officer call program to potential customers, and theofficers' participation in various civic organizationswas not part of an organized effort to help the com-munity or solicit information on its credit needs.Although Bank advertised its deposit services, Bankfailed to advertise its credit products to the public. Theexamination also indicated that Bank was not an activeparticipant in community development programs orgovernment supported housing and small businessprograms in recent years, and many of the activitiesthat Bank used as evidence to support its developmentrecord were out-dated or were specific programs re-quired by state law. Finally, the Bank's lending recordindicated that a substantial portion of Bank's loanswere made to borrowers outside Bank's designatedcommunity, despite evidence of loan demand withinthe community.

In response to the examination findings, Somersetmade a number of commitments to the Board and theCommonwealth to improve Bank's consumer compli-ance and CRA record.4 Bank has committed to theBoard (1) to strengthen its community outreach activ-ities by meeting regularly with local community repre-sentatives, (2) to review its participation in govern-mental credit programs and to inform the public of theavailability of funds under such programs, and (3) todevelop further its plans for making its entire commu-nity more fully aware of its credit services throughadvertising and a call program. Bank has providedreports to the Federal Reserve Bank of Boston and theCommonwealth over the past six months detailing its

2. AH banking data are as of December 31,1987.3. The Boston banking market is approximated by the Boston RMA

minus the New Hampshire towns of Brentwood, Chester, and Derryand the Massachusetts towns of Ayer, Berlin, Groton, Harvard,Pepperell, and Shirley. The Boston market also includes those por-tions of Bellingham, Carver, Lakeville, Middleboro, and Plymouthnot included in the Boston RMA.

4. Bank committed to the Commonwealth to take all necessarysteps to alleviate the deficiencies revealed in the examination report.Bank also made a number of specific commitments, including com-mitments to better market its credit services, to offer mortgages onless restrictive terms and to become involved with certain governmentlending programs and community development projects. Bank hascorrected its technical CRA violations and has made substantialefforts to fulfill these commitments.


efforts to implement the commitments that it made toeach regulator.

In December 1987, Bank's board of directorsadopted a new CRA statement. As part of Bank'scommitment to ascertain the credit needs of its com-munity, Bank has assigned a vice president as theBank's compliance officer to oversee its CRA activi-ties. This officer will report to Bank's board of direc-tors on a quarterly basis, and the Bank's board willrecord its actions regarding Bank's CRA efforts. Aspart of Bank's new program, Bank's employees arerequired to increase their calls to potential smallbusiness borrowers, and Bank is in the process ofcreating a detailed centralized reporting system forjudging the success of its call program.

In addition, Bank will initiate meetings with localgroups involved with housing and other credit-relatedareas. In order to inform the local community of itscredit services, Bank has begun to advertise its creditproducts in local papers and now has its mortgageprogram included as part of the mortgage rate report inthe local newspapers. Bank has taken steps to increaseits participation in community development projectsand recently obtained approval to participate in thePHA loan program. Finally, Bank has made certainfinancial commitments to a number of state and localhousing authorities and community assistance pro-grams. After a review of the actions and ongoing plansSomerset has taken to improve its CRA record, theCommonwealth of Massachusetts approved Somer-set's application to acquire Bank.

The Board has stated that an applicant's commit-ments to correct its deficiencies in its CRA programare an important aspect of the Board's role in encour-aging performance under CRA. This is especiallyimportant where, as here, Bank has taken substantialactions to correct its deficiencies.5 Accordingly, inlight of Bank's actions over the past six months tocorrect the deficiencies in its CRA performance, itscommitments to continue to strengthen its CRA per-formance, and the favorable recommendation by theCommonwealth of Massachusetts, the Board con-cludes that the factors relating to the convenience andneeds of the communities to be served are consistentwith approval.6

5. See Advance Bancorp, Inc., 72 FEDERAL RESERVE BULLETIN 834(1986); Board Statement of January 3,1980, Federal Reserve Regula-tory Service, 1 6-1312.

6. The Board also has received a protest concerning Bank's CRAperformance from the Somerville Corporation, Somerville, Massachu-setts ("Protestant"), a local non-profit development corporation.Protestant alleged that Bank has not participated in any developmentprojects for low- and moderate-income families in Somerville, eventhough many of Bank's depositors fall in that category. Somerset andProtestant reached an agreement that Somerset will increase itslending over the next four years to non-profit developers of affordable

As a condition of approval of this application,Somerset and Bank shall continue to submit quarterlyreports to the Reserve Bank concerning the progressof Bank's CRA program. The Board will also carefullyreview all future applications to determine whetherSomerset has made substantial measurable progress infulfulling the commitments it has made to the Board toimprove its service to the convenience and needs of itscommunity.

Based on the foregoing and other facts of record, theBoard has determined that approval of the applicationwould be consistent with the public interest and thatthe application should be, and hereby is, approved.The transaction shall not be consummated before thethirtieth calendar day following the effective date ofthis Order, or 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 Boston, acting pursuant to delegated author-ity.

By order of the Board of Governors, effectiveJuly 25, 1988.

Voting for this action: Vice Chairman Johnson and Gover-nors Seger, Angell, and Heller. Absent and not voting:Chairman Greenspan and Governor Kelley.

JAMES MCAFEEAssociate Secretary of the Board

Taiyo Kobe Bank, Ltd.Kobe, Japan

Order Approving Formation of a Bank HoldingCompany

Taiyo Kobe Bank, Ltd., Kobe, Japan ("Applicant"),has applied for the Board's approval under section3(a)(l) of the Bank Holding Company Act (12 U.S.C.§ 1842(a)(l)) ("BHC Act"), to become a bank holdingcompany by acquiring all of the voting shares of TaiyoKobe Bank & Trust Company ("Bank"), New York,New York, a de novo trust bank.

Notice of the application, affording an opportunityfor interested persons to submit comments, has beengiven in accordance with section 3 of the BHC Act. (52Federal Register 22,527 (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. § 1842(c)).

housing for low- and moderate-income residents in the local commu-nity or permanent financing for such residents. Based on this commit-ment, the protest was withdrawn.


Applicant, with total assets of approximately $175billion, is the 27th largest bank worldwide and theeighth largest city bank in Japan.1 Applicant engagesin a variety of banking activities on a world-wide basis.Applicant operates branches in New York, Chicagoand Seattle, as well as an agency in Los Angeles, andhas selected New York as its home state under theBoard's Regulation K (12 C.F.R. § 211.22(b)).2 Appli-cant is permitted under section 5 of the InternationalBanking Act, 12 U.S.C. § 3103(b), to retain itsbranches outside of New York because the Seattleoffice was opened prior to July 27, 1978, the statutorygrandfather date, and because the Chicago branch wasestablished to receive only such deposits as would bepermissible for a corporation organized under section25(a) of the Federal Reserve Act. 12 U.S.C.§ 31O3(a)(l).

In addition to traditional lending and deposit-takingactivities, Bank will offer wholesale trust services tocustomers in metropolitan New York3 and throughoutthe United States. Bank also will undertake debtparticipations in lease and municipal financing activi-ties nationwide. Bank thereby will expand the scope ofApplicant's banking operations beyond those retailservices currently provided by Applicant's UnitedStates branches and agency. Based upon the facts ofrecord, including the de novo status of Bank, theBoard concludes that the proposed transaction wouldhave no adverse effects on competition. Accordingly,competitive considerations are consistent with ap-proval.

Section 3(c) of the BHC Act requires the Board inevery case to consider the financial resources of anapplicant organization and the bank or bank holdingcompany to be acquired. In accordance with theprinciples of national treatment and competitive eq-uity, the Board has previously stated that it expectsforeign banks seeking to establish or acquire bankingorganizations in the United States to meet the samegeneral standards of strength, experience and reputa-tion as domestic banking organizations, and to be ableto serve as a source of financial strength to their

United States banking operations.4 In considering ap-plications of foreign banking organizations, the Boardhas noted that foreign banks operate outside theUnited States in accordance with different regulatoryand supervisory requirements, accounting principles,asset quality standards, and banking practices andtraditions, and that these differences make it difficultto compare the capital positions of domestic andforeign banks. The Board has addressed the complexissues involved in balancing these concerns in thecontext of individual applications on a case-by-casebasis, making adjustments as appropriate to an appli-cant's capital to reflect differences in accounting treat-ment and regulatory practices.

The Board recently has announced a proposal tosupplement its consideration of capital adequacy witha risk-based system that is simultaneously being pro-posed by the member countries of the Basle Commit-tee on Banking Regulations and Supervisory Practicesand the other domestic federal banking agencies.3 TheJapanese Ministry of Finance in April of this yearacted to implement for Japanese banking organizationsthe risk-based capital framework developed by theBasle Committee. The Board considers the BasleCommittee proposal an important step toward a moreconsistent and equitable international norm for assess-ing capital adequacy. Until that framework becomeseffective, however, the Board will continue to evaluateapplications involving foreign banking organizationson a case-by-case basis consistent with its prior pre-cedent.

In this case, the primary capital ratio of Applicant,as publicly reported, is well below the 5.5 percentminimum level specified in the Board's Capital Ade-quacy Guidelines.6 After making adjustments to reflectJapanese banking and accounting practices, however,including consideration of a portion of the unrealizedappreciation in Applicant's portfolio of equity securi-ties consistent with the principles in the Basle capitalframework, Applicant's capital ratio meets UnitedStates standards.

The Board has also considered several additionalfactors that mitigate its concern in this case. The

1. Banking data are as of March 31, 1988, based on the dollar/yenexchange rate as of that date. Applicant's market rank is as of July1987.

2. As of September 30, 1987, the New York branch reported totalassets of $4.7 billion; the Chicago branch reported total assets of $300million; the Seattle branch reported total assets of $800 million; andthe Los Angeles office reported total assets of $1.2 billion.

3. The Metropolitan New York-New Jersey market is defined toinclude New York City and Long Island, New York; Putnam, Orange,Westchester, Rockland and Sullivan Counties in New York; Bergen,Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean,Passaic, Somerset, Sussex, Union and Warren Counties in NewJersey; and portions of Fairfield County in Connecticut.

4. See Sumitomo Trust & Banking Co., Ltd. 73 FEDERAL RESERVEBULLETIN 749 (1987). Accord, Long-Term Credit Bank of Japan,Board Order dated June 6,1988; Ljubljanska Banka-Associated Bank,72 FEDERAL RESERVE BULLETIN 489 (1986); The Mitsubishi Trust andBanking Corporation, 72 FEDERAL RESERVE BULLETIN 256 (1986);The Industrial Bank of Japan, Ltd., 72 FEDERAL RESERVE BULLETIN71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL RESERVEBULLETIN 518 (1984). See also Policy Statement on Supervision andRegulation of Foreign-Based Bank Holding Companies, Federal Re-serve Regulatory Service 14-835 (1979).

5. 53 Federal Register 8,549 (1988).6. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985),

71 FEDERAL RESERVE BULLETIN 445 (1985).


Board has placed considerable emphasis on the factthat Applicant will establish Bank de novo, and thatBank will be strongly capitalized and small in relationto Applicant. The Board expects that Applicant willmaintain Bank among the more strongly capitalizedbanking organizations of comparable size in theUnited States. The Board notes further that Applicantis in compliance with the capital and other financialrequirements of Japanese banking organizations. Inthis regard, the Board has considered as favorablefactors that, in anticipation of implementation of theBasle Committee risk-based capital framework, Appli-cant has, through the issuance of common stock andretention of earnings, increased its equity capital byapproximately $640 million in its latest fiscal year, andthat Applicant's capital improvement program is con-sistent with meeting the standards in the Basle Com-mittee capital framework for 1990 and 1992.

Based on these and other facts of record, includingcertain commitments made by Applicant, the Boardconcludes that financial and managerial factors areconsistent with approval of this application to acquireBank. Considerations relating to the convenience andneeds of the communities to be served are also con-sistent with approval.

Accordingly, the Board has determined that thisapplication under section 3 of the BHC Act should be,and hereby is, approved. The proposed acquisition ofBank shall not be consummated before the thirtiethcalendar day following the effective date of this Order.The proposal shall not be consummated later thanthree months after the effective date of this Order, andBank shall be opened for business not later than sixmonths after the effective date of this Order. The lattertwo periods may be extended for good cause by theBoard or by the Federal Reserve Bank of New York,pursuant to delegated authority.


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

JAMES MCAFEE

Associate Secretary of the Board

Dissenting Statement of Governor Seger

I dissent from the Board's action in this case. I believethat foreign banking organizations whose publicly re-ported capital, based on U.S. accounting principles, iswell below the Board's capital guidelines for U.S.banking organizations have an unfair competitive ad-vantage in the United States over domestic banking

organizations and should be judged against the samefinancial and managerial standards, including theBoard's capital adequacy guidelines, as are applied todomestic banking organizations.

In addition, I am concerned that while this applica-tion would permit a large Japanese banking organiza-tion to acquire a bank in the U.S., U.S. bankingorganizations are not permitted to make comparableacquisitions in Japan. While some progress is beingmade in opening Japanese markets to U.S. bankingorganizations, U.S. banking organizations and otherfinancial institutions, in my opinion, are still far frombeing afforded the full opportunity to compete inJapan.

July 8, 1988

Toyo Trust and Banking Co., Ltd.Tokyo,Japan

Order Approving the Formation of a Bank HoldingCompany

Toyo Trust and Banking Co., Ltd., Tokyo, Japan("Applicant"), has applied for the Board's approvalunder section 3(a)(l) of the Bank Holding CompanyAct (the "Act") (12 U.S.C. § 1842(a)(l)), to become abank holding company by acquiring 100 percent of thevoting shares of Toyo Trust Company of New York,New York, New York ("Bank"), a de novo bank.

Notice of the application, affording an opportunityfor interested persons to submit comments, has beengiven in accordance with section 3(b) of the Act. 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 3(c) ofthe Act (12 U.S.C. § 1842(c)).

Applicant, with total consolidated assets equivalentto approximately $84 billion,1 ranks as the sixth largestof eight trust banks in Japan. Worldwide, Applicantranks as the 33rd largest bank. Applicant operates 55offices throughout Japan as well as five foreignbranches and agencies and five representative offices.In addition, Applicant engages in financially relatedactivities through three wholly owned subsidiariesoutside Japan and owns 30 percent of a leasing com-pany in the People's Republic of China.

In the United States, Applicant operates a branch inNew York, New York, with total assets of $3.2billion,2 and an agency in Los Angeles, California,with total assets of $1.6 billion. Applicant has selected

1. Banking data are as of March 31,1988, and reflect the yen/dollarexchange rate as of that date. Rankings are as of July 31, 1987.

2. Banking data for branch and agency are as of December 31,1987.


New York as its home state under the Board's Regu-lation K (12 C.F.R. 211.22(b)). Bank will be located inApplicant's home state. Accordingly, the Board con-cludes that the acquisition of Bank by Applicant isconsistent with Section 5 of the International BankingAct of 1978 (12 U.S.C. §3103).

Bank, a de novo institution, is being organized as astate-chartered, nonmember bank. It will place pri-mary emphasis on providing trust related services, andwill also provide a full range of commercial bankingservices in the Metropolitan New York-New Jerseybanking market.3 In view of the de novo status of Bankand based upon the facts of record, the Board con-cludes that the proposed transaction will have nosignificant adverse effects on existing or probablefuture competition, and will not significantly increasethe concentration of resources in any relevant market.Thus, competitive considerations are consistent withapproval of the application.

Section 3(c) of the Act requires the Board in everycase to consider the financial resources of the appli-cant organization and the bank or bank holding com-pany to be acquired. In accordance with the principlesof national treatment and competitive equity, theBoard has previously stated that it expects foreignbanks seeking to establish or acquire banking organi-zations in the United States to meet the same generalstandards of strength, experience, and reputation asdomestic banking organizations, and to be able toserve as a source of strength to their banking opera-tions in the United States.4 In considering applicationsof foreign banking organizations, the Board has notedthat foreign banks operate outside the United States inaccordance with different regulatory and supervisoryrequirements, accounting principles, asset qualitystandards, and banking practices and traditions, andthat these differences make it difficult to compare thecapital positions of domestic and foreign banks. TheBoard has addressed the complex issues involved in

3, The Metropolitan New York-New Jersey market is defined toinclude New York City and Long Island, New York; Putnam,Sullivan, Westchester, Rockland, and Orange Counties in New York;Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris,Ocean, Passaic, Somerset, Sussex, Union and Warren Counties inNew Jersey; and portions of Fairfield County in Connecticut.

4. See [Jubljanska Banka-Associated Bank, 72 FEDERAL RESERVEBULLETIN 489 (1986); The Mitsubishi Trust and Banking Corporation,72 FEDERAL RESERVE BULLETIN 256 (1986); The Industrial Bank ofJapan, Ltd., 72 FEDERAL RESERVE BULLETIN 71 (1986); The Mitsu-bishi Bank, Limited, 70 FEDERAL RESERVE BULLETIN 518 (1984). Seealso Policy Statement on Supervision and Regulation of Foreign-Based Holding Companies, Federal Reserve Regulatory Service11 4-835 (1979).

balancing these concerns in the context of individualapplications on a case-by-case basis, making adjust-ments as appropriate to an applicant's capital to reflectdifferences in accounting treatment and regulatorypractices.

The Board recently has announced a proposal tosupplement its consideration of capital adequacy witha risk-based system that is simultaneously being pro-posed by the member countries of the Basle Commit-tee on Banking Regulations and Supervisory Practicesand the other domestic federal banking agencies.5 TheJapanese Ministry of Finance in April of this yearacted to implement for Japanese banking organizationsthe risk-based capital framework developed by theBasle Committee. The Board considers the BasleCommittee proposal an important step toward a moreconsistent and equitable international norm for assess-ing capital adequacy. Until that framework becomeseffective, however, the Board will continue to evaluateapplications involving foreign banking organizationson a case-by-case basis consistent with its prior pre-cedent.

In this case, the primary capital ratio of Applicant,as publicly reported, is well below the 5.5 percentminimum level specified in the Board's Capital Ade-quacy Guidelines.* After making adjustments to reflectJapanese banking and accounting practices, however,including consideration of a portion of the unrealizedappreciation in Applicant's portfolio of equity securi-ties consistent with the principles in the Basle capitalframework, Applicant's capital ratio meets UnitedStates standards.

The Board has also considered several additionalfactors that mitigate its concern in this case. TheBoard has placed considerable emphasis on the factthat Applicant will establish Bank de novo, and thatBank will be strongly capitalized and small in relationto Applicant. The Board expects that Applicant willmaintain Bank among the more strongly capitalizedbanking organizations of comparable size in theUnited States. The Board notes further that Applicantis in compliance with the capital and other financialrequirements of Japanese banking organizations. Inthis regard, the Board has considered as favorablefactors that, in anticipation of implementation of theBasie Committee risk-based capital framework, Appli-

5. 53 Federal Register 8,549 (1988).6. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985),

71 FEDERAL RESERVE BULLETIN 445 (1985).


cant has, through the issuance of common stock andretention of earnings, increased its equity capital byapproximately $225 million in its latest fiscal year, andby another $280 million in the first quarter of this fiscalyear. The Board also notes that Applicant's capitalimprovement program is consistent with meeting thestandards in the Basle Committee capital frameworkfor 1990 and 1992.

Based on these and other facts of record, includingcertain commitments made by Applicant, the Boardconcludes that the financial and managerial factors areconsistent with approval of this application. Consider-ations relating to the convenience and needs of thecommunity to be served are also consistent withapproval.

Based upon the foregoing and other facts of record,the Board has determined that consummation of thetransaction would be in the public interest and that theapplication should be, and hereby is, approved. Thetransaction shall not be consummated before the thir-tieth calendar day following the effective date of thisOrder, or later than three months after the effectivedate of this Order, and Bank shall be opened forbusiness not later than six months after the effectivedate of this Order. The latter two periods may beextended for good cause by the Board or the FederalReserve Bank of New York, pursuant to delegatedauthority.


Voting for this action: Chairman Greenspan and GovernorsAngell and Heller. Voting against this action: GovernorSeger. Absent and not voting: Governors Johnson and Kelly.

JAMES MCAFEE

Associate Secretary of the Board

Dissenting Statement of Governor Seger

I dissent from the Board's action in this case. I believethat foreign banking organizations whose publicly re-ported capital, based on U.S. accounting principles, iswell below the Board's capital guidelines for U.S.banking organizations have an unfair competitive ad-vantage in the United States over domestic bankingorganizations and should be judged against the samefinancial and managerial standards, including theBoard's capital adequacy guidelines, as are applied todomestic banking organizations.

In addition, I am concerned that while this applica-tion would permit a large Japanese banking organiza-tion to acquire a bank in the U.S., U.S. bankingorganizations are not permitted to acquire banks inJapan. While some progress is being made in openingJapanese markets to U.S. banking organizations, U.S.banking organizations and other financial institutions,in my opinion, are still far from being afforded the fullopportunity to compete in Japan.

July 11, 1988

APPLICATIONS 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 Bank(s)Reserve

BankEffective

date

Baden Bancorp, Inc.,Wilmington, Delaware

1889 Bankcorp,East Lansing, Michigan

Bank of New Baden,New Baden, Illinois

Lookingglass Bane Corp.,Albers, Illinois

Pioneer Bank,North Branch, Michigan

St. Louis July 15, 1988

Chicago June 21, 1988


Section 3—Continued

Applicant

Bank South Corporation,Atlanta, Georgia

Bank South Pensacola, Inc.,Atlanta, Georgia

B.M.J. Financial Corp.,Bordentown, New Jersey

Britt Bancshares, Inc.,St. Paul, Minnesota

Cardinal Bancshares, Inc.,Lexington, Kentucky

CB&T Bancshares, Inc.,Columbus, Georgia

Colorado Western Bancorp, Inc.,Montrose, Colorado

Danville Bancshares, Inc.,Danville, Iowa

Family Bancorp,Haverhill, Massachusetts

First Affiliated Bancorp, Inc.,Watseka, Illinois

First Colonial BanksharesCorporation,Chicago, Illinois

First Commercial Bancshares,Inc.,Jasper, Alabama

First Financial Corporation,Terre Haute, Indiana

The First Jermyn Corp.,Jermyn, Pennsylvania

First Litchfield FinancialCorporation,Litchfield, Connecticut

Firstmondovi, Inc.,Mondovi, Wisconsin

GEBSCO, Inc.,Cochrane, Wisconsin

FirstMorrillCo.,Omaha, Nebraska

First United Bancshares, Inc.,El Dorado, Arkansas

FNBH Bancorp, Inc.,Howell, Michigan

Bank(s)

C&P Bank Corporation ofPensacola,Pensacola, Florida

The Citizens and PeoplesNational Bank of Pensacola,Pensacola, Florida

Southern Ocean State Bank,Little Egg Harbor Township,Tuckerton, New Jersey

First State Bank,Britt, Iowa

Harco Bankshares, Inc.,Harlan, Kentucky

Fort Rucker Bancshares, Inc.,Chillicothe, Missouri

First National Bank of Montrose,Montrose, Colorado

Danville State Savings Bank,Danville, Iowa

The Family Mutual SavingsBank,Haverhill, Massachusetts

Watseka First National Bank,Watseka, Illinois

First Colonial Bank of LakeCounty,Vernon Hills, Illinois

Cahaba Bancorp,Trussville, Alabama

First Citizens of Paris, Inc.,Paris, Illinois

First Jessup Corp.,Jessup, Pennsylvania

The First National Bank ofLitchfield,Litchfield, Connecticut

Bank of Mondovi,Mondovi, Wisconsin

Security State Bank,Ansley, Nebraska

First City Corp.,Fort Smith, Arkansas

First National Bank in Howell,Howell, Michigan

ReserveBank

Atlanta

Atlanta

Philadelphia

Chicago

Cleveland

Atlanta

Kansas City

Chicago

Boston

Chicago

Chicago

Atlanta

Chicago

Philadelphia

Boston

Minneapolis

Kansas City

St. Louis

Chicago

Effectivedate

July 20, 1988

July 20, 1988

July 5, 1988

June 30, 1988

June 28, 1988

July 20, 1988

June 29, 1988

June 22, 1988

July 14, 1988

June 22, 1988

July 6, 1988

July 18, 1988

July 7, 1988

June 23, 1988

June 20, 1988

July 1, 1988

July 1, 1988

June 24, 1988

July 19, 1988




BankEffective

date

Fryburg Banking Company,Fryburg, Pennsylvania

Gillespie Bancshares, Inc.,De Soto, Wisconsin

Gustine-DeLeon Bancshares,Inc.,Gustine, Texas

Hasten Bancorp,Indianapolis, Indiana

Keystone Financial, Inc.,Harrisburg, Pennsylvania

Lincoln Financial Corporation,Fort Wayne, Indiana

Lone Star Bancshares, Inc.,Victoria, Texas

Market Street Bancshares, Inc.,McLeansboro, Illinois

McCamey Financial Corporation,McCamey, Texas

Montclair Bancorp, Inc.,Montclair, New Jersey

NBA Holding Company,Davenport, Iowa

NSB Bancshares, Inc.,La Crosse, Kansas

Northwest Bancorporation Inc.,Houston, Texas

Northwest Illinois Bancorp, Inc.,Freeport, Illinois

Norwich Financial Corp.,Norwich, Connecticut

Suburban Bancorp, Inc.,Palatine, Illinois

First United National Bank,Fryburg, Pennsylvania

De Soto State Bank,De Soto, Wisconsin

The First State Bank,Gustine, Texas

Sullivan State Bank,

Cleveland

Chicago

Dallas

Chicago

July 11,

June 23

July 1,

June 29

, 1988

, 1988

1988

, 1988Sullivan, Indiana

Peoples State Bank,Farmersburg, Indiana

First Bank and Trust Company ofClay County,Brazil, Indiana

Farmers Bane, Inc.,Tipton, Indiana

Security National Bank,Pottstown, Pennsylvania

Peoples Bancshares Corporation,Van Wert, Ohio

Texas National Bank of Victoria,Victoria, Texas

Peoples National Bank,McLeansboro, Illinois

McCamey Bancshares, Inc.,McCamey, Texas

Montclair Savings Bank,Montclair, New Jersey

National Bank of Aledo,Aledo, Illinois

The Nekoma State Bank,LaCrosse, Kansas

Northwest Bank,Houston, Texas

First State Bank and TrustCompany,Rockford, Illinois

First State Financial Corporationof Rockford,Rockford, Illinois

NWIB Acquisition Corporation,Inc.,Freeport, Illinois

Norwich Savings Society,Norwich, Connecticut

Continental Bank of OakbrookTerrace,Oakbrook Terrace, Illinois

Philadelphia

Chicago

Dallas

St. Louis

Dallas

New York

Chicago

Kansas City

Dallas

Chicago

July

July

June

July

July

July

July

July

June

July

12, 1988

12, 1988

30, 1988

7, 1988

12, 1988

13, 1988

7, 1988

14, 1988

23, 1988

15, 1988

Boston

Chicago

July 8, 1988

July 6, 1988




BankEffective

date

Terre DuLac Bancshares, Inc.,St. Louis, Missouri

Tripoli Bancshares, Inc.,St. Paul, Minnesota

Two Rivers Corporation,Grand Junction, Colorado

Union Planters Corporation,Memphis, Tennessee

Volunteer State Bancshares, Inc.,Portland, Tennessee

Wright Bancgroup Company,San Antonio, Texas

Ozarks National Bank,Lake Ozark, Missouri

Britt Bancshares, Inc.,St. Paul, Minnesota

Bank of Grand Junction,Grand Junction, Colorado

The Citizens Bank,Collierville, Tennessee

BOC Bancorp, Inc.,Woodbury, Tennessee

Texas Bancorp Shares, Inc.,San Antonio, Texas

St. Louis

Chicago

Kansas City

St. Louis

Atlanta

Dallas

June

June

July

July

June

July

22, 1988

30, 1988

20, 1988

18, 1988

24, 1988

8, 1988

Section 4

Applicant

Baer Holding Ltd.,Zurich, Switzerland

Bank of Montreal,Montreal, Quebec, Canada

Bankmont Financial Corporation,Wilmington, Delaware

The Bank of TokyoTokyo, Japan

NonbankingCompany/Activity

Harbor Capital ManagementCompany, Inc.,Boston, Massachusetts

Harris Government Securities,Inc.,Chicago, Illinois

to engage in providing investmentor financial advice; and

ReserveBank

New York

Chicago

New York

Effectivedate

July 8, 1988

June 21, 1988

June 30, 1988

First Bank System, Inc.,Minneapolis, Minnesota

First Bank System, Inc.,Minneapolis, Minnesota

providing investment advice onfinancial futures and options onfutures as a commoditiestrading advisor

Caylor Financial Services ofWisconsin, Inc.,Brookfield, Wisconsin

Midwestern Brokerage, Inc.,d.b.a. Stock's InsuranceServices,Willmar, Minnesota

Minneapolis

Minneapolis

June 24, 1988

July 15, 1988


Sections 3 and 4

Applicant NonbankingCompany/Activity

ReserveBank

Effectivedate

NBD Bancorp, Inc.,Detroit, Michigan

NBD Midwest Corporation,Detroit, Michigan

Charter Bank Group, Inc., Chicago July 13, 1988Northfield, Illinois

APPLICATIONS APPROVED UNDER BANK MERGER 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.

Applicant Bank(s) ReserveBank

Effectivedate

Bank One, Mansfield,Mansfield, Ohio

Sovran Bank/Central South,Nashville, Tennessee

Bank One, Ashland, Cleveland July 13, 1988Ashland, Ohio

Sovran Bank/Williamson County, Atlanta July 1, 1988Franklin, Tennessee

PENDING CASES INVOLVING THE BOARD OF GOVERNORS

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

Whitney v. United States, et al., No. CA3-88-1596-H(N.D. Tex., filed July 7, 1988).

Credit Union National Association, Inc., et al., v.Board of Governors, No. 88-1295 (D.D.C. May 13,1988).

Bonilla v. Board of Governors, No. 88-1464 (7th Cir.,filed March 11, 1988).

Cohen v. Board of Governors, No. 88-1061 (D.N.J.,filed March 7, 1988).

Stoddard v. Board of Governors, No. 88-1148 (D.C.Cir., filed Feb. 25, 1988).

Independent Insurance Agents of America, Inc. v.Board of Governors, No. 87-1686 (D.C. Cir., filedNov. 19, 1987).

National Association of Casualty and Surety Agents,et al., v. Board of Governors, Nos. 87-1644,87-1801, 88-1001, 88-1206,88-1245, 88-1270 (D.C.

Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, March 18,March 30, April 7, 1988).

Teichgraeber v. Board of Governors, No. 87-2505-0(D. Kan., filed Oct. 16, 1987).

Northeast Bancorp v. Board of Governors, No.87-1365 (D.C. Cir., filed July 31, 1987).

National Association of Casualty & Insurance Agentsv. Board of Governors, Nos. 87-1354,87-1355 (D.C.Cir., filed July 29, 1987).

The Chase Manhattan Corporation v. Board of Gov-ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987).

Lewis v. Board of Governors, Nos. 87-3455, 87-3545(11th Cir., filed June 25, Aug. 3, 1987).

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

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

630

Membership of the Board of Governorsof the Federal Reserve System, 1913-88APPOINTIVE MEMBERS1

Name Federal ReserveDistrict

Date of initialoath of office

Other dates and information relatingto membership2

Charles S. Hamlin. .Boston Aug. 10, 1914

Paul M. Warburg...,Frederic A. Delano.W.P.G. HardingAdolphC. Miller....

.New York

.Chicago

.Atlanta

.San Francisco.

dodododo

Albert Strauss New YorkHenry A. Moehlenpah ChicagoEdmund Platt New York ,

David C. Wills ClevelandJohn R. Mitchell Minneapolis...Milo D. Campbell ChicagoDaniel R. Crissinger ClevelandGeorge R. James St. Louis

.Oct. 26, 1918

.Nov. 10, 1919June 8, 1920

.Sept. 29, 1920

.May 12, 1921

.Mar. 14, 1923

.May 1, 1923

.May 14, 1923

Edward H. Cunningham...ChicagoRoy A. Young Minneapolis...Eugene Meyer New YorkWayland W. Magee Kansas City...Eugene R. Black AtlantaM.S. Szymczak Chicago

J.J. Thomas Kansas City....Marriner S. Eccles San Francisco ,

Joseph A. Broderick New YorkJohnK. McKee ClevelandRonald Ransom AtlantaRalph W. Morrison DallasChester C. Davis RichmondErnest G. Draper New YorkRudolph M. Evans RichmondJames K. Vardaman, Jr. ..St. LouisLawrence Clayton BostonThomas B. McCabe Philadelphia...Edward L. Norton AtlantaOliver S. Powell Minneapolis...Wm. McC. Martin, Jr New York

do.Oct. 4, 1927.Sept. 16, 1930.May 18, 1931.May 19, 1933June 14, 1933

do.Nov. 15, 1934

.Feb. 3, 1936dodo

.Feb. 10, 1936June 25, 1936.Mar. 30, 1938.Mar. 14, 1942.Apr. 4, 1946.Feb. 14, 1947.Apr. 15, 1948.Sept. 1, 1950

do.April 2, 1951

A.L. Mills, Jr San Francisco ,J.L. Robertson Kansas City....C. Canby Balderston PhiladelphiaPaul E. Miller Minneapolis....Chas. N. Shepardson DallasG.H. King, Jr Atlanta

.Feb. 18, 1952do

.Aug. 12, 1954

.Aug. 13, 1954

.Mar. 17, 1955

.Mar. 25, 1959

George W. Mitchell Chicago Aug. 31, 1961

Reappointed in 1916 and 1926. Served untilFeb. 3, 1936.3

Term expired Aug. 9, 1918.Resigned July 21, 1918.Term expired Aug. 9, 1922.Reappointed in 1924. Reappointed in 1934

from the Richmond District. Served untilFeb. 3, 1936.3

Resigned Mar. 15, 1920.Term expired Aug. 9, 1920.Reappointed in 1928. Resigned

Sept. 14, 1930.Term expired Mar. 4, 1921.Resigned May 12, 1923.Died Mar. 22, 1923.Resigned Sept. 15, 1927.Reappointed in 1931. Served until

Feb. 3, 1936."Died Nov. 28, 1930.Resigned Aug. 31, 1930.Resigned May 10, 1933.Term expired Jan. 24, 1933.Resigned Aug. 15, 1934.Reappointed in 1936 and 1948. Resigned

May 31, 1961.Served until Feb. 10, 1936.3Reappointed in 1936, 1940, and 1944.

Resigned July 14, 1951.Resigned Sept. 30, 1937.Served until Apr. 4, 1946.3Reappointed in 1942. Died Dec. 2, 1947.Resigned July 9, 1936.Reappointed in 1940. Resigned Apr. 15, 1941.Served until Sept. 1, 1950.3Served until Aug. 13, 1954.3Resigned Nov. 30, 1958.Died Dec. 4, 1949.Resigned Mar. 31, 1951.Resigned Jan. 31, 1952.Resigned June 30, 1952.Reappointed in 1956. Term expired

Jan. 31, 1970.Reappointed in 1958. Resigned Feb. 28, 1965.Reappointed in 1964. Resigned Apr. 30, 1973.Served through Feb. 28, 1966.Died Oct. 21, 1954.Retired Apr. 30, 1967.Reappointed in 1960. Resigned

Sept. 18, 1963.Reappointed in 1962. Served until

Feb. 13, 1976.3

631

Name Federal ReserveDistrict

Date of initialoath of office

Other dates and information relatingto membership2

J. Dewey Daane Richmond Nov. 29, 1963Sherman J. Maisel San Francisco Apr. 30, 1965Andrew F. Brimmer Philadelphia Mar. 9, 1966William W. Sherrill Dallas May 1, 1967Arthur F. Burns New York Jan. 31, 1970

John E. Sheehan St. Louis Jan. 4, 1972Jeffrey M. Bucher San Francisco June 5, 1972Robert C. Holland Kansas City June 11, 1973Henry C. Wallich Boston Mar. 8, 1974Philip E. Coldwell Dallas Oct. 29, 1974Philip C. Jackson, Jr Atlanta July 14, 1975J. Charles Partee Richmond Jan. 5, 1976Stephen S. Gardner Philadelphia Feb. 13, 1976David M. Lilly Minneapolis June 1, 1976G. William Miller San Francisco Mar. 8, 1978Nancy H. Teeters Chicago Sept. 18, 1978Emmett J. Rice New York June 20, 1979Frederick H. Schultz Atlanta July 27, 1979Paul A. Volcker Philadelphia Aug. 6, 1979Lyle E. Gramley Kansas City May 28, 1980Preston Martin San Francisco Mar. 31, 1982Martha R. Seger Chicago July 2, 1984Wayne D. Angell Kansas City Feb. 7, 1986Manuel H. Johnson Richmond Feb. 7, 1986H. Robert Heller San Francisco Aug. 19, 1986Edward W. Kelley, Jr Dallas May 26, 1987Alan Greenspan New York Aug. 11, 1987John P. LaWare Boston Aug. 15, 1988

Served until Mar. 8, 1974.3Served through May 31, 1972.Resigned Aug. 31, 1974.Reappointed in 1968. Resigned Nov. 15, 1971.Term began Feb. 1, 1970. Resigned

Mar. 31, 1978.Resigned June 1, 1975.Resigned Jan. 2, 1976.Resigned May 15, 1976.Resigned Dec. 15, 1986.Served through Feb. 29, 1980.Resigned Nov. 17, 1978.Served until Feb. 7, 1986.3Died Nov. 19, 1978Resigned Feb. 24, 1978.Resigned Aug. 6, 1979.Served through June 27, 1984.Resigned Dec. 31, 1986.Served through Feb. 11, 1982.Resigned August 11, 1987.Resigned Sept. 1, 1985.Resigned April 30, 1986.

Chairmen4

Charles S. Hamlin Aug.W.P.G. Harding Aug.Daniel R. Crissinger MayRoy A. Young Oct.Eugene Meyer Sept.Eugene R. Black MayMarriner S. Eccles Nov.Thomas B. McCabe Apr.Wm. McC. Martin, Jr. ..Apr.Arthur F. Burns Feb.G. William Miller Mar.Paul A. Volcker Aug.Alan Greenspan Aug.

10, 1914-Aug. 9, 191610, 1916-Aug. 9, 19221, 1923-Sept. 15, 19274, 1927-Aug. 31, 1930

16, 1930-May 10, 193319, 1933-Aug. 15, 193415, 1934-Jan. 31, 1948

15, 1948-Mar. 31, 19512, 1951-Jan. 31, 19701, 1970-Jan. 31, 19788, 1978-Aug. 6, 19796, 1979-Aug 11, 198711, 1987-

Vice Chairmen4

Frederic A. Delano Aug.Paul M. Warburg Aug.Albert Strauss Oct.Edmund Platt JulyJ.J. Thomas Aug.Ronald Ransom Aug.C. Canby Balderston Mar.J.L. Robertson Mar.George W. Mitchell MayStephen S. Gardner Feb.Frederick H. Schultz JulyPreston Martin Mar.Manuel H. Johnson Aug.

10, 1914-Aug. 9, 191610, 1916-Aug. 9, 191826, 1918-Mar. 15, 192023, 1920-Sept. 14, 193021, 1934-Feb. 10, 19366, 1936-Dec. 2, 194711, 1955-Feb. 28, 19661, 1966-Apr. 30, 19731, 1973-Feb. 13, 197613, 1976-Nov. 19, 197827, 1979-Feb. 11, 198231, 1982-Mar. 31, 198622, 1986-

EX-OFFICIO MEMBERS'

Secretaries of the TreasuryW.G. McAdoo Dec. 23, 1913-Dec. 15, 1918Carter Glass Dec. 16, 1918-Feb. 1, 1920David F. Houston Feb. 2, 1920-Mar. 3, 1921Andrew W. Mellon .Mar. 4, 1921-Feb. 12, 1932Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933William H. Woodin Mar. 4, 1933-Dec. 31, 1933Henry Morgenthau, Jr. Jan. 1, 1934-Feb. 1, 1936

1. Under the provisions of the original Federal Reserve Act, theFederal Reserve Board was composed of seven members, includingfive appointive members, the Secretary of the Treasury, who wasex-omcio chairman of the Board, and the Comptroller of theCurrency. The original term of office was ten years, and the fiveoriginal appointive members had terms of two, four, six, eight, andten years respectively. In 1922 the number of appointive memberswas increased to six, and in 1933 the term of office was increased totwelve years. The Banking Act of 1935, approved Aug. 23, 1935,changed the name of the Federal Reserve Board to the Board ofGovernors of the Federal Reserve System and provided that theBoard should be composed of seven appointive members; that the

Comptrollers of the CurrencyJohn Skelton Williams ...Feb. 2, 1914-Mar. 2, 1921Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923Henry M. Dawes May 1, 1923-Dec. 17, 1924Joseph W. Mclntosh Dec. 20, 1924-Nov. 20, 1928J.W. Pole Nov. 21, 1928-Sept. 20, 1932J.F.T. O'Connor May 11, 1933-Feb. 1, 1936

Secretary of the Treasury and the Comptroller of the Currencyshould continue to serve as members until Feb. 1, 1936, or untiltheir successors were appointed and had qualified; and thatthereafter the terms of members should be fourteen years and thatthe designation of Chairman and Vice Chairman of the board shouldbe for a term of four years.

2. Date after words "Resigned" and "Retired" denotes final dayof service.

3. Successor took office on this date.4. Chairman and Vice Chairman were designated Governor and

Vice Governor before Aug 23, 1935.

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 measuresA1S 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

series

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 salesand asset position

A35 Corporate profits and their distribution

A2 Federal Reserve Bulletin • September 1988

A36 Total nonfarm business expenditures on newplant and equipment

A37 Domestic finance companies—Assets andliabilities and business credit

A55 Foreign branches of U.S. banks—Balancesheet data

AS7 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 BY BANKS IN THE UNITED STATES

AS7 Liabilities to and claims on foreignersAS8 Liabilities to foreignersA60 Banks' own claims on foreignersA61 Banks' own and domestic customers' claims on

foreignersA61 Banks' own claims on unaffiliated 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 BY NONBANKING BUSINESSENTERPRISES IN THE UNITED STATES

A63 Liabilities to unaffiliated foreignersA64 Claims on unaffiliated foreigners

Domestic Nonfinancial Statistics

SELECTED MEASURES

A44 Nonfinancial 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 pricesA51 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 SpecialTables

SUMMARY STATISTICS

A53 U.S. international transactions—SummaryA54 U.S. foreign tradeA54 U.S. reserve assetsA54 Foreign official assets held at Federal Reserve

Banks

SPECIAL TABLES

A70 Terms of lending at commercial banks,May 2-6, 1988

A76 Terms of lending at commercial banks,November 2-6, 1987

A82 Assets and liabilities, U.S. branches andagencies of foreign banks, March 31, 1988

Money Stock and Bank Credit A3

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

Hem

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

1987

Q3 Q4

1988

Ql Q2

1988

Feb. Mar. Apr. May' June

Reserves of depository institutions1

1 Total2 Required3 Nonborrowed,,4 Monetary base

Concepts of money, liquid assets, and debt*5 Ml6 M27 M38 L9 Debt

Sontrgnsaction components10 I n M 2 * . . . .11 In M3 only*

Time and savings depositsCommercial banks

12 Savings 413 Small-denomination time"14 Large-denomination time'1'"

Thrift institutions15 Savings'16 Small-denomination time17 Large-denomination time"

Debt components*18 Federal19 Nonfederal20 Total loans and securities at commercial banks"

- . 9.3.3

5.1

.82.84.54.37.9

3.611.0

10.17.46.8

7.09.39.9

5.88.56.2

2.51.42.47.8

3.93.95.45.7'

10.1

3.911.3

.714.810.5

-3.816.022.2

7.610.9'5.5

3.52.91.58.3

3.8'6.77.0'6.5'8.3'

7.8'

6.313.73.4'

-2.421.315.7

9.3s.v5.1

5.87.2

-6.57.6

6.27.97.1

n.a.8.4

8.54.2

11.011.77.4

6.814.28.5

8.28.5

10.8

2.35.7

16.56.0

1.18.7'

10.6'8.6'7.9'

11.218.3'

13.417.617.2'

- . 525.016.2

11.26 ^9.3

3.88.0

-23.75.9

5.58.88.1'7.3'8.7'

9.95.4'

14.611.65.5'

7.118.01.5

15.26.8'7.9

12.313.9

-13.011.4

11.29.8'7.2

11.5'8.3'

9.4'-2.5'

6.5'15.1

-2 .2 '

10.113.8'15.3

7.18.7'

11.4

- . 2-3.8

8.55.0

.04.94.47.78.0

6.52.8

11.76.3

11.8

3.510.76.5

2.79.7

13.0

5.48.7

-4 .86.3

9.85.76.6

n.a.n.a.

4.210.2

12.96.2

21.9

10.03.0

-1 .4

n.a.n.a.11.1

1. Unless otherwise noted, rates of change are 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 reservable nondeposit liabilities, the sum of such requiredreserves is subtracted from the actual series. Similarly, in adjusting for discon-tinuities in the monetary base, required clearing balances and adjustments tocompensate for float also are subtracted from the actual series.

3. The monetary base not adjusted for discontinuities consists of total

d l R B k l h t f th tk lat Federal Reserve Banks 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: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults

of depository institutions; (2) travelers checks of nonbank issuers; (3) demanddeposits at all commercial banks other than those due to depository institutions,the U.S. government, and foreign banks and official institutions less cash items inthe process of collection and Federal Reserve float; and (4) other checkabledeposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto-matic transfer service (ATS) accounts at depository institutions, credit unionshare draft accounts, and demand deposits at thrift institutions.

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 RPs—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 depository

institutions 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.

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 subtractedis the estimated amount of overnight RPs and Eurodollars held by institution-onlymoney market mutual funds.

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

Debt: Debt of domestic nonflnancial sectors consists of outstanding creditmarket debt of the U.S. government, state and local governments, and privatenonflnancial 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 domesticnonflnancial debt is the Federal Reserve Board's flow of funds 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 ana 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 • September 1988

1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDITMillions of dollars

Factors

Monthly averages ofdaily figures

1988

Apr. May June

Weekly averages of daily figures for week ending

May 18 May 25 June 1 June 8 June 15 June 22 June 29

SUPPLYING RESERVE FUNDS

1 Reserve Bank credit

2 U.S. government securities'3 Bought outright4 Held under repurchase agreements5 Federal agency obligations6 Bought outright7 Held under repurchase agreements8 Acceptances9 Loans

10 Float11 Other Federal Reserve assets12 Gold stock1

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

ABSORBING RESERVE FUNDS

15 Currency in circulation.16 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 Banks3

248,228

221,348220,204

1,1447,6657,347

3180

3,081694

15,44011,0635,018

18,366

228,362484

5,047240

2,000364

7,328

38,850

249,800

223,732222,187

1,5457,7777,272

5050

2,592649

15,05011,0635,018

18,427

230,482475

7,276259

1,922360

7,302

36,231

251,010

225,333224,690

6437,5907,268

3220

3,040478

14,56911,0635,018

18,478

233,525455

4,306243

1,949329

7,348

37,413

251,276

225,250223,123

2,1277,7767,268

5080

2,270767

15,21311,0635,018

18,425

230,569479

5,996244

1,897322

7,443

38,832

244,363

219,342219,342

07,2687,268

00

2,911724

14,11811,0635,018

18,439

230,479470

3,176254

1,980339

7,302

34,885

247,754

222,515222,515

07,2687,268

00

3,329483

14,15811,0635,018

18,452

232,125465

3,210287

1,963483

7,195

36,559

250,998

224,968224,968

07,2687,268

00

3,278842

14,64211,0635,018

18,462

233,567458

2,682215

2,016312

7,101

39,189

250,624

224,931224,931

07,2687,268

00

3,651359

14,41511,0635,018

18,472

233,640459

3,110236

1,827304

7,463

38,140

250,967

224,955224,955

07,2687,268

00

3,034845

14,86511,0635,018

18,482

233,382457

4,252257

1,938

322

7,417

37,506

End-of-month figures Wednesday figures

1988 1988

Apr.

SUPPLYINO RESERVE FUNDS

23 Reserve Bank credit

24 U.S. government securities1

25 Bought outright26 Held under repurchase agreements27 Federal agency obligations28 Bought outright29 Held under repurchase agreements30 Acceptances31 Loans32 Float33 Other Federal Reserve assets34 Gold stock r

35 Special drawing rights certificate account..

36 Treasury currency outstanding

ABSORBING RESERVE FUNDS37 Currency in circulation38 Treasury cash holdings2

Deposits, other than reserve balances, withFederal Reserve Banks

39 Treasury40 Foreign41 Service-related balances and

adjustments42 Other43 Other Federal Reserve liabilities and

capital44 Reserve balances with Federal

Reserve Banks3

260,242

230,971223,363

7,60810,0747,2792,795

02,590

37116,23611,0635,018

18,395

228,308479

16,186215

1,660360

7,450

40,060

May

248,274

223,192223,192

07,2687,268

00

3,304122

14,38811,0635,018

18,451

232,758459

2,871298

1,660

427

7,235

37,098

June May 18

254,647

227,636222,450

5,1869,5087,2682,240

02,464

25914,78011,0635,018

18,501

235,513432

9,762382

1,655351

7,109

34,026

244,790

218,978218,978

07,2687,268

00

2,9051,203

14,43611,0635,018

18,437

230,666470

2,610260

1,674320

7,120

36,188

May 25

240,806

215,217215,217

07,2687,268

00

2,834709

14,77811,0635,018

18,451

231,090467

4,382227

1,660565

7,206

29,741

June 1

249,010

222,831222,831

07,2687,268

00

3,0211,705

14,18511,0635.018

18,461

233,259458

3,402302

1,660427

6,910

37,134

June 8 June 15

251,056

225,293225,293

07,2687,268

00

3,318768

14,40911,0635,018

18,471

233,827459

3,170198

1,653302

7,042

38,958

253,545

226,697226,697

07,2687,268

00

4,388624

14,56811,0635,018

18,481

233,776458

3,787219

1,653363

7,235

40,616

June 22

248,875

223,663223,663

07,2687,268

00

2,297861

14,78611,0635,018

18,491

233,246452

4,122204

1,657

275

7,265

36,227

252,634

226,509224,495

2,0148,3277,2681,059

02,281

51914,99811,0635,018

18,492

233,267449

6,529235

1,811363

7,510

37,045

June 29

256,429

228,438223,010

5,4289,8217,2682,553

02,244

52215,40411,0635,018

18,501

234,426432

8,216203

1,657359

7,394

38,325

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

2. Revised for periods between October 1986 and April 1987. 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 and Statistics, Banking Section.

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

NOTE. For amounts of currency and coin held as reserves, see table 1.12.

Money Stock and Bank Credit A5

1.12 RESERVES AND BORROWINGS Depository Institutions1

Millions of dollars

Reserve classification

Monthly averages9

1985

Dec.

1986

Dec.

1987

Dec.

1987

Nov. Dec. Jan. Feb. Mar. Apr. May

1 Reserve balances with Reserve Banks1

2 Total vault cash*3 Vault*..4 Surplus5... k5 Total reserves6

6 Required reserves i7 Excess reserve balances at Reserve Banks'8 Total borrowings at Reserve Banks9 Seasonal borrowings at Reserve Banks

10 Extended credit at Reserve Banks8

27,62022,95320,5222,431

48,14247,085

1,0581,318

56499

37,36024,07922,199

1,87959,56058,191

1,36982738

303

37,67326,15524,449

1,70662,12361,094

93483

37,45325,43123,752

1,67961,20560,282

923625126394

37,67326,15524,449

1,70662,12361,094

1,02977793

483

37,48526,91925,155

1,76462,64061,345

1,2951,082

59372

34,21128,11925,836

2,28360,04758,914

1,1333%75

205

36,02725,92624,049

1,87760,07659,147

9291,752

1191,478

38,42925,20023,636

1,56462,06461,205

8592,993

1462,624

Biweekly averages of daily figures for weeks ending

1988

Mar. 9

11 Reserve balances with Reserve Banks2

12 Total vault cash'13 Vault*14 Surplus'.15 Total reserves'16 Required reserves i17 Excess reserve balances at Reserve Banks'18 Total borrowings at Reserve Banks19 Seasonal borrowings at Reserve Banks20 Extended credit at Reserve Banks"

35,57525,98723,998

1,98959,57358,607

966537111255

Mar. 23 Apr. 6

35,76126,22424,332

1,89260,09359,182

9111,924

1231,685

37,00325,33623,610

1,72660,61359,696

9172,817

1222,494

Apr. 20

39,12325,20523,709

1,49762,83162,145

6863,619

1243,278

May 4

38,31325,11223,549

1,56361,86260,796

1,0672,224

1911,787

May 18

36,73725,72624,122

1,60460,85959,959

9012,175

2411,798

June 1

35,70726,26524,418

1,84760,12558,943'

l,182r

3,120269

2,538

June 15'

38,64425,11823,614

1,50462,25861,563

6963,465

2872,986

June 29

37,26026,23724,492

1,74561,75260,692

1,0602,658

3372,138

36,50925,87324,172

1,70060,68159,641

1,0402,578

2462,107

July 13

38,82126,27024,628

1,64263,44962,575

8743,656

3522,340

1. These data also appear in the Board's H.3 (502) release. For address, see in-side front cover.

2. Excludes required clearing balances and adjustments to compensate forfloat.

3. Dates refer to the maintenance periods in which the vault cash can be usedto satisfy reserve requirements. Under contemporaneous reserve requirements,maintenance periods end 30 days after the lagged computation periods in whichthe balances are held.

4. Equal 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 atinstitutions having no required reserve balances.

5. Total vault cash at institutions having no required reserve balances less theamount of vault cash equal to their required reserves during the maintenanceperiod.

6. Total reserves not adjusted for discontinuities consist of reserve balances

with Federal Reserve Banks, which exclude required clearing balances andadjustments to compensate for float, 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 Banks plus the amount of vault cash equal to required reserves during themaintenance period at institutions having no required reserve balances.

7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfyreserve requirements less required reserves.

8. Extended credit consists of borrowing at the discount window under theterms and conditions established for the extended credit program to helpdepository institutions deal with sustained liquidity pressures. Because there isnot the same need to repay such borrowing promptly as there is with traditionalshort-term adjustment credit, the money market impact of extended credit issimilar to that of nonborrowed reserves.

9. Data are prorated monthly averages of biweekly averages.


1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1

Averages of daily figures, in millions of dollars

Maturity and source1987 week ending Monday

Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 Jan. 4 Jan. 11 Jan. 18

Federal funds purchased, repurchase agreements, andother selected borrowing in immediately availablefunds

From commercial banks in the United States1 For one day or under continuing contract2 For all other maturities

From other depository institutions, foreign banks andforeign official institutions, and U.S. governmentagencies

3 For one day or under continuing contract4 For all other maturities

Repurchase agreements on U.S. government and federalagency securities In immediately available funds

Brokers and nonbank dealere in securities5 For one day or under continuing contract6 For all other maturities

All other customers7 For one day or under continuing contract8 For all other maturities

MEMO: Federal funds loans and resale agreements inimmediately available funds in maturities of one dayor under continuing contract

9 To commercial banks in the United States10 To all other specified customers2

70,72510,190

26,2657,762

13,97212,622

27,8409,662

29,89512,211

70,17411,547

24,6798,848

13,13613,982

24,07113,855

32,95211,190

75,6389,694

29,9307,160

13,38813,240

27,0779,972

31,27611,795

75,7749,608

27,2767,468

14,05213,274

27,0939,942

30,47211,027

70,8568,953

24,7256,968

14,74112,119

24,8879,886

31,14711,062

67,5369,409

22,8607,191

12,17012,603

24,51212,018

30,35210,326

75,0908,611

23,6026,886

15,7818,110

25,7939,675

34,04110,793

75,1889,297

28,2545,920

14,66010,653

27,6739,984

35,78312,665

70,8709,300

29,9545,897

14,42712,060

27,3279,420

35,35612,541

1. Banks with assets of $1 billion or more as of Dec. 31,1977.These data also appear in the Board's H.5 (507) release. For address, see inside

front cover.

2. Brokers and nonbank dealers in securities; other depository institutions;foreign banks and official institutions; and United States government agencies.

Policy Instruments A7

1.14 FEDERAL RESERVE BANK INTEREST RATES

Percent per year

Current and previous levels

Federal ReserveBank

New YorkPhiladelphiaClevelandRichmond

MinneapolisKansas CityDallas .San Francisco. . .

Adjustment credit

Seasonal credit1

On7/27/88

6

6

Effectivedate

9/9/879/4/879/4/879/4/879/5/879/4/87

9/4/879/9/879/8/879/4/87

9/11/879/9/87

Previousrate

SVi

514

Extended credit2

First 30 days of borrowing

On7/27/88

6

6

Effectivedate

9/9/879/4/879/4/879/4/879/5/879/4/87

9/4/879/9/879(8/879/4/87

9/11/879/9/87

Previousrate

514

514

After 30 days of borrowing3

On7/27/88

8.25

8.25

Effectivedate

7/14/887/14/887/14/887/14/887/14/887/14/88

7/14/887/14/887/14/887/14/887/14/887/14/88

Previousrate

8.05

8.05

Effective date

6/30/886/30/886/30/886/30/886/30/886/30/88

6/30/886/30/886/30/886/30/886/30/886/30/88

Range of rates for adjustment credit in recent years4

Effective date

In effect Dec. 31, 19771978—Jan. 9

20May 11

12July 3

10Aug. 21Sept. 22Oct. 16

20Nov. 1

3

1979-July 20

A u g 2 o 7 : : : : : : : : : : : : : :

T:::::::::::::Oct. 8

10

1980—Feb. 1519

May 2930

June 1316

Range (orlevel)—A11F.R.Banks

66-6M

614614-7

77-7V4

7147V*

88-814

814814-9V5

914

1010-IQV2

10141014-11

111M2

12

12-1313

12-1312

11-1211

F.R.Bank

ofN.Y.

66W614777V*IV*7V48814814914Wi

1010W101411111212

131313121111

Effective date

1980—July 2829

Sept. 26Nov. 17Dec. 5

1981 May 5

Nov. 26

Dec. 4

1982—July 20

Aug. 2

162730

Oct. 1213

Nov. 2226

Dec. 141517

Range (orlevel)—All F.R.

Banks

10-11101112

12-13

13-1414

13-141312

11VS-121114

11-11W11

101410-1014

10914-10

9Vi9-9 Vi

9814-9814-9

814

F.R.Bank

ofN.Y.

1010111213

1414131312

11141114111110V410109H914999814814

Effective date

1984—Apr. 9

Nov. 2126

Dec. 24

1985—May 2024

1986—Mar. 710

Apr. 21July 11A u 8 - 2 i : : : : : : : : : : : : : :

1987—Sept. 411

In effect July 27,1988

Range(orlevel)—A11F.R.Banks

8VS-99

8H-9814

8

7V4-8714

7-714

614-76

514-6514

514-66

6

F.R.Bank

ofN.Y.

998148148

7V4714

776146514514

66

6

1. Adjustment credit is available on a short-term basis to help depositoryinstitutions meet temporary needs for funds that cannot be met through reason-able alternative sources. After May 19,1986, the highest rate established for loansto depository institutions may be charged on adjustment credit loans of unusualsize that result from a major operating problem at the borrower's facility.

Seasonal credit is available to help smaller depository institutions meet regular,seasonal needs for funds that cannot be met through special industry lenders andthat arise from a combination of expected patterns of movement in their depositsand loans. A temporary simplified seasonal program was established on Mar. 8,1985, and the interest rate was a fixed rate 14 percent above the rate on adjustmentcredit. The program was reestablished on Feb. 18, 1986 and again on Jan. 28,1987; the rate may be either the same as that for adjustment credit or a fixed rateW percent higher.

2. Extended credit is available to depository institutions, where similar assist-ance is not reasonably available from other sources, when exceptional circum-stances or practices involve only a particular institution or when an institution isexperiencing difficulties adjusting to changing market conditions over a longerperiod of time.

3. For extended-credit loans outstanding more than 30 days, a flexible rate

somewhat above rates on market sources of funds ordinarily will be charged, butin no case will the rate charged be less than the basic discount rate plus 50 basispoints. The flexible rate is reestablished on the first business day of eachtwo-week reserve maintenance period. At the discretion of the Federal ReserveBank, the time period for which the basic discount rate is applied may beshortened.

4. For earlier data, see the following publications of the Board of Governors:Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual StatisticalDigest, 1970-1979,

In 1980 and 1981, the Federal Reserve applied a surcharge to 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, 1981. As of Oct. 1, 1981 theformula for applying the surcharge was changed from a calendar quarter to amoving 13-week period. The surcharge was eliminated on Nov. 17, 1981.


1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS'

Percent of deposits

Type of deposit, anddeposit interval

Depository institution requirementsafter implementation of the

Monetary Control Act

Effective date

Set transaction accounts1'*$0miHion-$40.5 million.. . .More than $40.5 million . . .

Nonpersonal time deposits*By original maturity

Less than Wi yearst Vi years or more

Eurocurrency liabilitiesAll types

12/15/8712/15/87

10/6/8310/6/83

11/13/80

1. Reserve requirements in effect on Dec. 31, 1987. Required reserves must beheld in the form of deposits with Federal Reserve Banks or vault cash. Nonmem-bers may maintain reserve balances with a Federal Reserve Bank indirectly on apass-through basis with certain approved institutions. For previous reserverequirements, see earlier editions of the Annual Report and of the FEDERALRESERVE BULLETIN. Under provisions of the Monetary Control Act, depositoryinstitutions include commercial banks, mutual savings banks, savings and loanassociations, credit unions, agencies and branches of foreign banks, and Edgecorporations.

2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law97-320) requires that $2 million of reservable liabilities (transaction accounts,nonpersonal time deposits, and Eurocurrency liabilities) of each depositoryinstitution be subject to a zero percent reserve requirement. The Board is to adjustthe amount of reservable liabilities subject to this zero percent reserve require-ment each year for the succeeding calendar year by 80 percent of the percentageincrease in the total reservable liabilities of all depository institutions, measuredon an annual basis as of June 30. No corresponding adjustment is to be made inthe event of a decrease. On Dec. 15, 1987, the exemption was raised from $2.9million to $3.2 million. In determining the reserve requirements of depositoryinstitutions, the exemption shall apply in the following order: (1) net NOWaccounts (NOW accounts less allowable deductions); (2) net other transactionaccounts; and (3) nonpersonal time deposits or Eurocurrency liabilities startingwith those with the highest reserve ratio. With respect to NOW accounts and

other 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 withdrawal, and telephone and preauthorized transfers in excess ofthree 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 preauthorized, 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 1980 requires that the amount of transactionaccounts against which the 3 percent reserve requirement applies be modifiedannually by 80 percent of the percentage increase in transaction accounts held byall depository institutions, determined as of June 30 each year. Effective Dec. 15,1987 for institutions reporting quarterly and Dec. 29, 1987 for institutionsreporting weekly, the amount was increased from $36.7 million to $40.5 million.

5. In general, nonpersonal time deposits are time deposits, including savingsdeposits, that are not transaction accounts and in which a beneficial interest isheld by a depositor that is not a natural person. Also included are certainA - » i - - .. » . _ *'~ns issuedto depository institution offices located outside the United States. For details, seesection 204.2 of" 'I of Regulation D.

Policy Instruments A9

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS'

Millions of dollars

Type of transaction 1985 1986 1987

1987

Nov. Dec.

1988

Jan. Feb. Mar. Apr. May

U.S. TREASURY SECURITIES

Outright transactions (excluding matchedtransactions)

Treasury bills1 Gross purchases2 Gross sales3 Exchange4 Redemptions

Others within 1 year5 Oross purchases6 Gross sales7 Maturity shift8 Exchange9 Redemptions

1 to 5 years10 Gross purchases11 Gross sales12 Maturity shift13 Exchange

5 to 10 years14 Gross purchases15 Gross sales16 Maturity shift17 Exchange

Over 10 years18 Gross purchases19 Oross sales20 Maturity shift21 Exchange

All maturities22 Gross purchases23 Gross sales24 Redemptions

Matched transactions25 Gross soles26 Gross purchases

Repurchase agreements1

27 Gross purchases28 Gross sales

29 Net change in U.S. government securities

FEDERAL AOENCY OBLIGATIONS

Outright transactions30 Oross purchases31 Oross sales32 Redemptions


33 Gross purchases34 Oross sales

35 Net change in federal agency obligations .

36 Total net change In System Open MarketAccount

22,2144,118

03,500

1,349

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

00

162

22,18320,877

1,144

21,621

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

J98

31,14230,522

222

30,211

18,9836,050

09,029

3,658300

21,502-20,388

70

10,231452

-17,97418,938

2,4410

-3,529950

1,85800

500

37,1716,8029,099

950,923950,935

314,620324,666

11,235

00

276

80,35381,351

-1,274

9,961

3,388000

6700

2,247-3,728

70

500

-1,9003,278

00

-347300

000

150

4,1080

70

85,28885,494

15,85318,751

1,346

6,7867,425

-640

706

150000

4790

1,400-1,742

0

2,5890

-1,4001,742

596000

445000

4,25900

104,833105,917

23,51225,264

3,591

9,71810,679

-975

2,617

049

0600

00

950-754

0

00

-840749

00

-110

049

600

78,35878,513

10,59114,237

-4,140

00

131

4,0425,357

-1,446

-5,586

346538

01,600

00

1,939-2,868

0

0800

-9522,643

0175

-987150

000

75

3461,5131,600

97,89299,139

00

-1,520

00

21

-21

-1,541

560000

00

2,051-2,089

0

00

-2,0512,089

56000

104,527104,572

605

-3

602

423000

1,0920

3,6610

-8231,434

1,0170

- 4 5254

966000

7,16000

86,90085,608

18,69611,088

13,476

00

120

4,2431,447

2,676

16,151

00

1,646-4,324

0

00

-1,1023,724

00

-387400

00

-157200

115,287115,115

15,87123,478

-7,779

00

11

4,7717,566

-2,807

-10,585

1. Sales, redemptions, and negative figures reduce holdings of the System OpenMarket Account; all other figures increase such holdings. Details may not add tototals because of rounding.

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


1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1

Millions of dollars

Account

Wednesday

June 1 June 8 June 13 June 22 June 29

End of month

1988

Apr. May June

Consolidated condition statement

ASSETS

1 Gold certificate account2 Special drawing rights certificate account3 Coin

Loans4 To depository institutions5 Other6 Acceptances held under repurchase agreements . . .

Federal agency obligations7 Bought outright8 Held under repurchase agreements

U.S. Treasury securitiesBought outright

9 Bills10 Notes11 Bonds12 Total bought outright2

13 Held under repurchase agreements14 Total U.S. Treasury securities

15 Total loans and securities

16 Items in process of collection17 Bank premises

Other assets18 Denominated in foreign currencies3

19 All other*

20 Total assets

LIABILITIES

21 Federal Reserve notesDeposits

22 To depository institutions23 U.S. Treasury—General account24 Foreign—Official accounts25 Other

26 Total deposits

27 Deferred credit items t

28 Other liabilities and accrued dividends3

29 Total liabilities

CAPITAL ACCOUNTS

30 Capital paid in31 Surplus

32 Other capital accounts

33 Total liabilities and capital accounts

34 MEMO: Marketable U.S. Treasury securities held incustody for foreign and international account

35 Federal Reserve notes outstanding issued to bank36 LESS: Held by bank37 Federal Reserve notes, net

Collateral held against notes net:38 Gold certificate account39 Special drawing rights certificate account40 Other eligible assets41 U.S. Treasury and agency securities

42 Total collateral

11,0635,018

393

3,0210

7,268

00

105,85487,48429,493

222,8310

222,831

233,120

10,654724

6,3537,108

274,433

215,649

38,7943,402

302427

42,925

8,9492,509

270,032

2,1022,047

252

274,433

231,066

258,65743,008

215,649

11,0635,018

0199,568

215,649

11,0635,018

379

3,3180

7,268

00

108,31687,48429,493

225,2930

225,293

235,879

6,910727

6,3537,329

273,(58

216,193

40,6113,170

198302

44,281

6,1422,499

269,115

2,1042,047

392

273,658

228,359

11,0635,018

385

4,3880

7,268

00

109,72087,48429,493

226,6970

226,697

238,353

7,591727

6,3637,478

276,978

216,138

42,2693,787

219363

46,638

6,9672,691

272,434

2,1052,047

392

276,978

11,0635,018

395

2,2970

7,268

00

106,68687,48429,493

223,6630

223,663

233,228

7,133727

6,3647,695

271,623

215,601

37,8844,122

204275

42,485

6,2722,711

267,069

2,1062,047

401

271,623

227,312 231,215 226,364

11,0635,018

380

2,2440

7,268

2,5530

106,03387,48429,493

223,0105,428

228,438

240,503

6,155725

6,4578,222

278,523

216,736

39,9828,216

203359

48,760

5,6332,847

173,97*

2,1102,047

390

278,523

11,0635,018

450

2,59000

7,2792,795

106,38687,68429,293

223,3637,608

230,971

243,635

7,577719

6,4469,071

283,979

210,842

41,72016,186

215360

58,481

7,2062,861

279,390

2,0962,047

446

283,979

229,054

11,0635,018

402

3,30400

7,2680

106,21587,48429,493

223,1920

223,192

233,764

5,354723

6,3497,316

269,989

215,168

38,7582,871

298427

42,354

5,2322,539

265,293

2,1012,047

548

269,989

230,917

Federal Reserve note statement

258,81142,618

216,193

11,0635,018

0200,112

216,1*3

259,57143,433

216,138

11,0635,018

0200,057

216,138

260,14644,545

215,601

11,0635,018

0199,520

215,601

260,13343,397

216,736

11,0635,018

0200,655

216,736

256,80645,964

210,842

11,0635,018

0194,761

210,842

258,66143,493

215,168

11,0635,018

0199,087

215,168

11,0635,018

369

2,4640

7,268

2,2400

105,47387,48429,493

222,4505,186

227,636

239,608

6,604727

6,2267,827

277,442

217,812

35,6819,762

382351

46,176

6,3452,819

273,152

2,1102,039

141

277,442

228,226

260,04942,237

217,812

11,0635,018

0201,731

217,812

1. Some of these data also appear in the Board's H.4.1 (503) release. Foraddress, see inside front cover.

2. Includes securities loaned—fully guaranteed by U.S. Treasury securitiespledged with Federal Reserve Banks—and excludes securities sold and scheduledto be bought back under matched sale-purchase transactions.

3. Valued monthly at market exchange rates.

4. Includes special investment account at the Federal Reserve Bank of Chicagoin Treasury bills maturing within 90 days.

5. Includes exchange-translation account reflecting the monthly revaluation atmarket exchange rates of foreign-exchange commitments.

Federal Reserve Banks Al 1

1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings

Millions of dollars

Type and maturity groupings

Wednesday

1988

June I June 8 June IS June 22 June 29

End of month

1988

Apr. 29 May 31 June 30

1 Loans—Total2 Within 15 days3 16 days to 90 days4 91 days to 1 year

5 Acceptances—Total6 Within 15 days7 16 days to 90 days8 91 days to 1 year

9 U.S. Treasury securities—Total..10 Within 15 days'11 16 days to 90 days12 9] 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 days19 91 days to 1 year20 Over 1 year to 5 years21 Over 5 years to 10 years22 Over 10 years

3,0212,855

1660

0000

222,83111,30148,94267,11553,53015,43526,508

7,26825

6612,0283,2301,135

3,3183,164

1540

0000

225,29312,79853,83063,19253,53015,43526,508

7,26825

8671,8223,2301,135

4,3884,219

1690

0000

226,69711,37753,45566,39253,53015,43526,508

7,26828

9191,7903,2071,135

189

2,2972,238

590

0000

223,66311,34150,60766,24253,53015,43526,508

7,268258689

1,7903,2071,135

189

2,2442,184

600

0000

228,43816,31750,35666,29253,53015,43526,508

9,8212,783694

1,8083,2041,143189

2,5902,523

670

0000

230,97115,08255,85666,95051,19615,42226,465

10,0742,936659

1,8373,2921,161189

3,2823,185

970

0000

223,1927,372

53,23267,11553,53015,43526,508

7,268246661

1,7283,3091,135189

2,4642,3361280

0000

227,63610,56950,26970,88453,97115,43526,508

9,5082,470694

1.8083,2041,143189

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

A12 Domestic Financial Statistics D September 1988

1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1

Billions of dollars, averages of daily figures

ADJUSTED FORCHANGES IN RESERVE REQUIREMENTS3

5 Monetary base*

6 Total reserves3

10 Monetary base . . . .

NOT ADJUSTED FORCHANGES IN RESERVE REQUIREMENTS*

11 Total reserves3

15 Monetary base5

1984Dec.

1985Dec.

1986Dec.

1987Dec.

1987

Nov. Dec.

1988

Ian. Feb. Mar. Apr. May June

Seasonally adjusted

40.96

37.7740.3840.11

200.45

41.84

38.6541.2640.99

203.39

40.70

37.5140.0939.84

204.18

47.26

45.9446.4446.20

218.26

48.27

46.9547.4547.21

221.49

48.14

46.8247.4147.08

223.53

57.46

56.6356.9356.09

240.80

58.70

57.8758.1857.33

244.55

59.56

58.7359.0458.19

247.71

58.72

57.9458.4357.69

257.93

60.02

59.2559.7358.99

262.05

62.12

61.3561.8661.09

266.16

59.05

58.4358.8258.13

256.94

58.72

57.9458.4357.69

257.93

59.46

58.3858.7558.16

260.72

59.57

59.1859.3858.44

262.02

Not seasonally adjusted

59.14

58.5158.9158.21

257.65

61.20

60.5860.7960.28

261.67

60.02

59.2559.7358.99

262.05

62.12

61.3561.8661.09

266.16

61.20

60.1260.4959.90

262.01

62,64

61.5662.1261.34

265.79

58.66

58.2758.4757.53

259.01

60.05

59.6559.8258.91

262.60

59.76

58.0159.4958.83

263.32

58.85

57.1058.5857.92

260.77

60.08

58 3259.5859 15

263.98

60.37

57.3860.0059.51

265.81

60.95

57.9560.5860.09

265.01

62.06

59.0761.8961.21

268.13

60.37'

57.7959.8959.32'

266.92'

59.45

56.8858.9858.41'

265.73'

60.68

58.1060.0859.64'

268.90'

60.64

57.5560.1159.76

268.32

60.68

57.6060.1559.80

269.46

61.99

58.9161.4761.11

272.67

1. Latest monthly and biweekly figures are available from the Board's H.3(502)statistical release. Historical data and estimates of the impact on required reservesof changes in reserve requirements are available from the Monetary and ReservesProjections Section. Division of Monetary Affairs. Board of Governors of theFederal Reserve System, Washington, D.C. 20551.

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 reservable nondeposit liabilities, the sum of such requiredreserves is subtracted from the actual series. Similarly, in adjusting for disconti-nuities in the monetary base, required clearing balances and adjustments tocompensate for float also are subtracted from the actual series.

3. Total reserves not adjusted for discontinuities consist of reserve balanceswith Federal Reserve Banks, which exclude required clearing balances andadjustments to compensate for float, plus vault cash held during the laggedcomputation period by institutions having required reserve balances at FederalReserve Banks plus the amount of vault cash equal to required reserves during themaintenance period at institutions having no required reserve balances.

4. Extended credit consists of borrowing at the discount window under the

terms and conditions established for the extended credit program to helpdepository institutions deal with sustained liquidity pressures. Because there isnot the same need to repay such borrowing promptly as there is with traditionalshort-term adjustment credit, the money market impact of extended credit issimilar to that of nonborrowed reserves.

5. The monetary base not adjusted for discontinuities consists of total reservesplus required clearing balances and adjustments to compensate for float at FederalReserve Banks and the currency component of the money stock plus, for insti-tutions not having required reserve balances, the excess of current vault cash overthe amount applied to satisfy current reserve requirements. Currency and vaultcash figures are measured over the weekly computation period ending Monday.

The seasonally adjusted monetary base consists of seasonally adjusted totalreserves, which include excess reserves on a not seasonally adjusted basis, plusthe seasonally adjusted currency component of the money stock and the remain-ing items seasonally adjusted as a whole.

6. Reflects actual reserve requirements, including those on nondeposit liabili-ties, with no adjustments to eliminate the effects of discontinuities associated withimplementation of the Monetary Control Act or other regulatory changes toreserve requirements.

Monetary and Credit Aggregates A13

1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1

Billions of dollars, averages of daily figures

Item2 1984Dec.

1985Dec.

1986Dec.

1987Dec.

1988

Mar. Apr.' May' June

Seasonally adjusted

1 Ml2 M 23 M34 L5 Debt

Ml components6 Currency'7 Travelers checks,8 Demand deposits3

9 Other checkable deposits6

Nontransactions components10 In M2\11 InM3only»

Savings deposits9

12 Commercial Banks13 Thrift institutions

Small denomination time deposits'"14 Commercial Banks15 Thrift institutions

Money market mutual funds16 General purpose and broker-dealer.17 Institution-only

Large denomination time deposits"18 Commercial Banks"19 Thrift institutions

Debt components20 Federal debt21 Nonfederal debt

22 Ml23 M224 M325 L26 Debt

Ml components27 Currency3 ,28 Travelers checks*29 Demand deposits3

30 Other checkable deposits'

Nontransactions components

32 M3 only*!'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.

Money market deposit accounts33 Commercial Banks34 Thrift institutions

Savings deposits'35 Commercial Banks36 Thrift institutions

Small denomination time deposits10

37 Commercial Banks38 Thrift institutions

Money market mutual funds39 General purpose and broker-dealer.40 Institution-only

Large denomination time deposits"41 Commercial Banks1'42 Thrift institutions

Debt components43 Federaldebt44 Nonfederal debt

551.92,363.62,978.33,519.45,932.6

156.15.2

244.1146.4

1,811.7614.7

122.6162.9

386.3497.0

167.562.7

270.2148

1,365.34,567.3

620.12,562.63,196.43,825.96,749.4

167.75.9

267.2179.2

1,942.5633.8

124.8176.6

383.3496.2

176.564.5

284.9151.6

1,584.35,165.1

725.42,807.83,490.44,133.87,607.6

180.46.5

303.3235.2

2,082.4682.6

155.5215.2

364.6488.6

208.084.4

288.9150.3

1,804.55,803.2

750.82,901.13,661.14,323.9'8,305.4'

196.57.1

288.0259.3

2,150.3760.0

178.2236.0

384.6528.5

221.189.6

323.5161.2

1,954.76,350.7'

763.0'2,967.53,744.4'4,418.6'8,468.7'

200.97.3

287.9266.9'

2,204.5'776y

183.2236.6

397.5556.0

234.997.4

326.3165.1

2,006.66,462.1'

770.02,991.73,767.04,460.78,527.7

202.57.3

290.1270.1

2,221.7775.3

184.2238.6

402.4562.4

236.191.9

325.7167.2

2,018.56,509.2

770.03,003.73,780.84,489.38,584.7

203.67.4

287.3271.8

2,233.7777.1

185.9239.3

404.6567.3

232.790.0

328.9168.1

2,023.16,561.6

776.23,018.03,801.8

n.a.n.a.

204.97.3

289.8274.3

2,241.8783.8

188.0241.3

406.8568.7

229.886.3

334.9168.0


564.52,373.22,991.43,532.75,927.1

158.54.9

253.0148.2

1,808.7618.2

267.4149.4

121.5161.5

386.9498.2

167.562.7

270.9146.8

1,364.74,562.4

633.52,573.93,211.03,841.46,740.6

170.25.5

276.9180.9

1,940.3637.1

332.8180.8

123.7174.8

384.0497.5

176.564.5

285.4151.9

1,583.75,156.9

740.62,821.53,507.24,151.97,593.3

183.06.0

314.4237.3

2,080.8685.7

379.6192.9

154.2212.9

365.3489.7

208.084.4

289.1150.7

1,803.95,789.4

765.92,914.83,677.74,341.9"8,289.3'

199.46.5

298.5261.6

2,148.9762.9

358.2167.0

176.7233.3

385.2529.3

221.189.6

323.6161.8

1,954.16,335.1'

752.1'2,958.93,737.6'4,417.0'8,436.8'

199.26.9

279.9266.1'

2,206.8'778.7

3 6 0 ^163.8

182.5236.1

397.2556.6

234.997.4

328.5'165.3

1,993.26,443.6'

778.22,999.33,771.84,461.18,498.0

201.66.9

291.9277.8

2,221.1772.5

360.3163.0

185.1239.5

399.5560.9

236.191.9

325.6165.6

2,001.66,496.4

763.62,989.83,768.34,471.98,555.0

203.67.1

282.8270.1

2,226.2778.5

356.9162.6

187.1241.3

401.4562.8

232.790.0

329.6167.1

2,005.26,549.8

778.53,015.83,797.1

n.a.n.a.

205.87.6

290.8274.3

2,237.3781.3

360.0162.4

189.6244.1

405.3565.2

229.886.3

334.2166.8

n.a.n.a.

For notes see following page.


NOTES TO TABLE 1.21

1. Latest monthly and weekly figures are available from the Board's H.6 (508)release. Historical data are available from the Banking Sections, Division ofResearch and Statistics, Board of Governors of the Federal Reserve System,Washington, D C . 20551.

2. Composition of the money stock measures and debt is as follows:Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults

of depository institutions; (2) travelers checks of nonbank issuers; (3) demanddeposits at all commercial banks other than those due to depository institutions,the U.S. government, and foreign banks and official institutions less cash items inthe process of collection and Federal Reserve float; and (4) other checkabledeposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto-matic transfer service (ATS) accounts at depository institutions, credit unionshare draft accounts, and demand deposits at thrift institutions.

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, MMDAs, savings and small-denomination time deposits (time deposits—including retail RPs—in amounts ofless than $100,000), and balances in both taxable and tax-exempt general purposeand broker-dealer money market mutual funds. Excludes individual retirementaccounts (IRA) and Keogh balances at depository institutions and 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 U.S. government.

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 subtractedis the estimated amount of overnight RPs and Eurodollars held by institution-onlymoney market mutual funds.

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

Debt: Debt of domestic nonfinancial 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 Mow of funds accounts. Debtdata are based on monthly averages.

3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults ofdepository institutions.

4. Outstanding amount of U.S. dollar-denominated travelers checks of non-bank issuers. Travelers checks issued by depository institutions are included indemand deposits.

5. Demand deposits at commercial banks and foreign-related institutions otherthan those due to depository institutions, the U.S. government, and foreign banksand official institutions less cash items in the process of collection and FederalReserve float.

6. Consists of NOW and ATS balances at all depository institutions, creditunion share draft balances, and demand deposits at thrift institutions.

7. Sum of overnight RPs and overnight Eurodollars, money market fundbalances (general purpose and broker-dealer), MMDAs, and savings and smalltime deposits.

8. Sum of large time deposits, term RPs, and term Eurodollars of U.S.residents, money market fund balances (institution-only), less the estimatedamount of overnight RPs and Eurodollars held by institution-only money marketfunds.

9. Savings deposits exclude MMDAs.10. Small-denomination time deposits—including retail RPs—are those issued

in amounts of less than $100,000. All individual retirement accounts (IRA) andKeogh accounts at commercial banks and thrifts are subtracted from small timedeposits.

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

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

Monetary and Credit Aggregates A15

1.22 BANK DEBITS AND DEPOSIT TURNOVER1

Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.

Bank group, or type of customer 19852 I9862 19872

1987'

Nov. Dec.

1988

Jan.' Feb.' Mar. Apr.

DEBITS TO

Demand deposits3

1 All insured banks2 Major New York City banks3 Other banks ,4 ATS-NOW accounts4

5 Savings deposits3

DEPOSIT TURNOVER

Demand deposits'6 All insured banks7 Major New York City banks8 Other banks9 ATS-NOW accounts4

10 Savings deposits3

DEBITS TO

Demand deposits3

11 All insured banks12 Major New York City banks13 Other banks14 ATS-NOW accounts*15 MMDA'. ,16 Savings deposits3

DBPOSIT TURNOVER

Demand deposits1

17 All insured banks18 Major New York City banks19 Other banks20 ATS-NOW accounts4

21 MMDA' ,22 Savings deposits3

156,052.370,559.285,493.1

1,826.41,223.9

385.3

499.92,196.3

305.615.84.03.2

Seasonally adjusted

156,091.670,585.885,505.9

1,823.5384.9

500.32,196.9

305.715.83.2

188,345.891,397.396,948.8

2,182.5403.5

556.52,498.2

321.215.63.0

217,115.9104,496.3112,619.6

2,402.7526.5

612.12,670.6

357.013.83.1

219,386.1103,693.6115,692.5

2,536.1570.8

619.02,620.2

367.414.23.3

203,290.692,640.1

110,650.52,525.7

556.0

590.42,608.1

358.314.23.2

213,270.898,733.8

114,537.02,352.7

S34.9

602.52,600.3

362.513.03.0

221,057.3104,568.3116,489.0

2,730.3596.0

628.22,844.8

369.714.93.3

218,986.7101,161.0117,825.7

2,856.8640.7

628.82,811.0

377.315.53.5


213,971.5100,695.1113,276.4

2,557.9543.7

600.22,700.6

354.913.83.0

188,506.491,500.097,006.6

2.1S4.61,609.4

404.1

556.72,499.1

321.215.64.53.0

217,124.8104,518.6112,606.1

2,404.81,954.2

526.8

612.32,674.9

356.913.85.33.1

202,230.196,035.9

106,194.22,375.81,959.8

519.9

565.62,467.8

333.313.35.53.0

222,338.9102,548.7119,790.3

2,645.32,276.4

568.9

615.02,661.4

370.914.66.43.2

210,029.140.3

112,189.02,565.22,305.6

552.5

578.72,430.3

347.713.96.53.1

208,899.236.8

110,792.72,468.62,102.8

526.3

610.52,664.6

362.813.55.93.0

233,286.6109,557.8123,728.8

2,825.02,337.5

616.5

684.33,005.7

406.415.36.53.4

214,848.8101,141.9113,706.9

2,745.32,372.8

603.2

601.82,706.2

355.714.46.63.3

1. Historical tables containing revised data for earlier periods may be obtainedfrom the Banking Section, Division of Monetary Affairs, Board of Governors ofthe Federal Reserve System, Washington, D.C, 20551.

These data also appear on the Board's O.6 (406) release. For address, see insidefront cover.

2. Annual averages of monthly figures.3. Represents accounts of individuals, partnerships, and corporations and

of states and political subdivisions.4. Accounts authorized tor negotiable orders of withdrawal (NOW) and ac-

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

5. Excludes ATS and NOW accounts, MMDA and special club accounts, suchas Christmas and vacation clubs.

6. Money market deposit accounts.


1.23 LOANS AND SECURITIES All Commercial Banks'

Billions of dollars; averages of Wednesday figures

Category1987

July Aug. Sept. Oct. Nov. Dec.

1988

Jan. Feb. Mar. Apr. May June

1 Total loans and securities1

2 U.S. government securities3 Other securities4 Total loans and leases5 Commercial and industrial . , . . .6 Bankers acceptances held . . .7 Other commercial and

industrial .,8 U.S. addressees4 . . . . .9 Non-U.S. addressees4

10 Real estate11 Individual12 Security13 Nonbank financial

institutions14 Agricultural15 State and political

subdivisions16 Foreign banks17 Foreign official institutions18 Lease financing receivables . . . .19 All other loans

20 Total loans and securities2

21 U.S. government securities22 Other securities „23 Total loans and leases'24 Commercial and industrial . . . . .25 Bankers acceptances held3 . . .26 Other commercial and

industrial27 U.S. addressees4 . . . . .2S Non-U.S. addressees4

29 Real estate30 Individual31 Security32 Nonbank financial

institutions33 Agricultural34 State and political

subdivisions35 Foreign banks36 Foreign official institutions37 Lease financing receivables38 All other loans

Seasonally adjusted

2,181.3

322.9194.3

1,664.1553.6

4.5

549.1540.8

8.3549.6319.743.9

32.529.8

55.6'9.05.7

23.940.7

2,199.0

328.5193.7

1,676.8554.0

5.3

548.7540.6

8.1556.8321.545.4

31.529.7

54.8'9.15.7

24.044.2'

2,214.7

331.3193.7

1,689.8559.0

5.4

553.6545.7

7.9561.7322.846.1

31.429.6

54.7r

9.25.7

24.145.4'

2,227.6

331.7194.2

1,701.7562.8

5.5

557.3549.4

7.9569.4324.147.1

31.729.6

54.19.65.8

24.343.1'

2,232.1

331.1196.2

1,704.8563.1

4.6

558.5551.0

7.5576.2325.039.3

31.929.3

53.48.85.7

24.547.6

2,230.6

333.2196.0

1,701.4565.5

4.3

561.2553.1

8.2582.3325.933.4

31.929.2

51.28.25.6

24.843.3

2,242.4

334.6193.9

1,714.0568.3

4.5

563.9554.9'

9.0587.5327.936.3

32.129.3'

52.38.25.6

24.841.6

2,259.8

334.9195.6

1,729.2571.1

4.5

566.6557.6

8.9593.0330.841.3

32.729.5

52.37.85.2

24.740.9

2,274.8

338.9197.5

1,738.4569.3

4.8

564.5556.1

8.4598.2334.639.8

32.129.5

52.18.15.2

24.844.6

2,2»7.7

343.0198.2

1,756.4578.8

4.7

574.1565.8

8.3604.4337.638.1

31.229.5

51.98.55.2

25.046.1

2,322.5

345.9'197.6

1,778.9587.4

4.5

582.9575.7'

7.1612.6'339.1'38.8

31.829.4

51.68.25.3

25.349.5'


2,343.9

349.8198.5

1,795.5594.4

4.5

589.9583.0

7.0618.9340.638.6

31.429.0

51.58.25.2

25.851.8

2,172.8

322.1193.0

1,657.7551.3

4.6

546.7538.2

8.6549.7318.443.3

32.330.5

54.79.05.7

23.938.9

2,188.8

328.3193.6

1,666.9549.5

5.3

544.2536.0

8.3556.8321.543.3

31.430.6

54.18.95.7

23.941.0

2,211.6

331.3193.8

1,686.6555.7

5.5

550.2542.1

8.1562.4324.344.8

31.830.7

53.89.55.7

24.043.9

2,222.4

329.3193.3

1,699.8558.7

5.4

553.3545.3

8.1570.0325.745.6

31.730.4

53.29.85.8

23.944.8

2,231.3

331.0195.6

1,704.7562.0

4.6

557.4549.3

8.1576.8326.739.4

32.329.6

52.38.85.7

24.246.8

2,247.0

333.1196.6

1,717.3569.6

4.4

565.2557.1

S.I583.2330.235.1

33.2?).¥51.28.65.6

24.846.8

2,255.0

336.1196.5

1,722.4568.0

4.3

563.7555.5

8.2587.8331.337.1

32.428.6

54.18.45.6

25.044.1

2,2*4.5

340.0196.3

1,728.2570.3

4.4

565.9557.4

8.5592.3330.239.7

31.628.5

53.5'8.05.2

24.943.8

2,275.0

340.8197.1

1,737.2574.5

4.8

569.7561.5

8.1597.4331.539.3

31.128.5

53.08.05.2

25.043.8

2,298.8

342.6197.8

1,758.5582.8

4.7

578.1570.0

8.1603.4334.539.8

31.128.7

52.48.15.2

25.247.1

2,319.1

344.3197.7'

1,777.1589.8

4.5

585.3577.9

7.3612.0336.339.3

31.529.1

51.67.95.3

25.44 8 ^

2,340.0

346.3198.0

1,795.7595.9

4.6

591.3584.2

7.1618.6338.540.0

31.529.3

51.18.15.2

26.051.3

1. These data also appear in the Board's G.7 (407) release. For address, seeinside front cover.

2. Excludes loans to commercial banks in the United States.

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

Commercial Banking Institutions A17

1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1

Monthly averages, billions of dollars

Source

Total nondeposit funds1 Seasonally adjusted2 Not seasonally adjusted

Federal funds, RPs, and otherborrowings from nonbanks'

4 Not seasonally adjusted ,5 Net balances due to foreign-related

institutions, not seasonally adjusted

MEMO6 Domestically chartered banks' net positions

with own foreign branches,

9 Foreign-related institutions' net positionswith directly related institutions,not seasonally adjusted3

10 Gross due from balances

Security RP borrowings

13 Not seasonally adjusted .... .^....,U.S. Treasury demand balances7

14 Seasonally adjusted15 Not seasonally adjusted .

Time deposits, $100,000 or more*16 Seasonally adjusted . . .

1987

July

160.4156.8

167.3163.6

-6 .9

-22.266.444.2

15.477.492.8

103.099.4

24.426.6

372.5370.0

Aug.

166.8166.9

167.1167.2

- . 3

-17.764.546.8

17.477.795.0

105.2105.3

28.521.6

372.3371.8

Sept.

177.3177.7

165.0165.4

12.3

-11.863.852.0

24.177.3

101.4

107.4107.8

24.925.5

373.0373.2

Oct.

176.3176.3

164.7164.8

11.6

-14.767.753.0

26.379.7

106.0

107.6107.6

34.230.7

380.5380.4

Nov.

173.8176.1

165.9168.3

7.9

-17.170.453.3

24.983.2

108.2

107.0109.3

35.725.8

387.0387.0

Dec.

177.4'178.2

162.2163.1

15.2'

-H.V69.5'55.5

29.279.8

109.0

106.5107.4

26.122.4

389.2389.3

1988

Jan.

179.2'

169.8170.1

9.1'

-16.5'71.2'54.7

25.685.2

110.8'

108.9109.3

18.624.9

389.1390.1

Feb.

176.7'179.2'

173.6176.1

3.1'

-20 .2 '72.9'52.7

23.387.3

110.6

107.7110.3

22.628.2

394.4394.7

Mar.

174.2'175.1'

177.4178.2

- 3 . 1 '

-25 .3 '76.6'51.3

22.188.6

110.7

108.2109.1

24.922.3

396.1398.2

Apr.

181.5'180.7'

179.5178.7

2.C

-22.2'7 2 ^50.7

24.288.3

112.4

112.0111.2

21.821.7

394.1394.0

May

191.5'191.3'

181.6181.4

9.8'

-16 .4 '69.6'53.3'

26.289.9'

116.0

114.9114.7

24.730.4

396.5397.2

June

190.7187.0

181.7178.1

8.9

-16 .069.453.4

25.093.6

118.5

117.7114.1

22.021.0

400.7400.0

1. Commercial banks are those in the 50 states and the District of Columbiawith national or state charters plus agencies and branches of foreign banks. NewYork investment companies majority owned by foreign banks, and Edge Actcorporations owned by domestically chartered and foreign banks.

These data also appear in the Board's G. 10(411) release. For address, seeinside from cover.

2. Includes seasonally adjusted federal funds, RPs, and other borrowings fromnonbanks and not seasonally adjusted net Eurodollars.

3. Other borrowings are borrowings on any instrument, such as a promissorynote or due bill, given for the purpose of borrowing money for the banking

business. This includes borrowings from Federal Reserve Banks and from foreignbanks, term federal funds, overdrawn due from bank balances, loan RPs, andparticipations in pooled loans.

4. Averages of daily figures for member and nonmember 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 (ax-and-loan notes at

commercial banks. Averages of daily data.8. Averages of Wednesday figures.


1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series'

Billions of dollars

Account

ALL COMMERCIAL BANKINGINSTITUTIONS2

4 Other

6 Total loans

9 Commercial and industrial10 Real estate

12 All other

14 Reserves with Federal Reserve Banks.15 Cash in vault .16 Cash items in process of collection . . .17 Demand bajances at U.S. depository

18 Other cash assets

19 Other assets .

20 Total assets/total liabilities and capital....

26 Other liabilities27 Residua] (assets less liabilities)

MEMO28 U.S. government securities (including

29 Other securities (including trading

DOMESTICALLY CHARTEREDCOMMERCIAL BANKS3

30 Loans and securities

32 U.S. Treasury securities33 Other34 Trading account assets

38 Commercial and industrial39 Real estate

41 Allother

42 Total cash assets..43 Reserves with Federal Reserve Banks.44 Cash in vault.45 Cash items in process of collection . . .46 Demand balances at U.S. depository

47 Other cash assets

48 Other assets

49 Total assets/liabilities and capital

50 Deposits

55 Other liabilities

1987

Aug.

2,348.8501.1313.7187.419.5

1,828.2160.8

1,667.5548.2558.2322.1239.0

210.737.324.765.9

30.852.1

184.5

2,744.0

1,930.4574.1537.9818.4426.4209.6177.6

326.8

193.8

2,179.6476.2303.5172.619.5

1,684.0128.6

1,555.4464.4548.4321.8220.8

192.736.224.665.4

29.237.2

119.9

2,492.2

1,868.8566.0535.7767.1333.0116.0174.4

Sept.

2,374.8501.7313.8187.919.5

1,853.6157.4

1,696.2560.7564.1325.3246.0

223.832.924.581.6

32.752.1

193.6

2,792.2

1,972.4612.4535.3824.7416.3224.7178.8

327.7

193.5

2,195.4475.9302.9173.019.5

1,700.0125.0

1,575.0470.2554.0325.0225.8

204.830.924.481.0

30.837.7

134.2

2,534.5

1,910.3603.9533.2773.3324.7123.8175.6

Oct.

2,402.4503.8316.0187.919.6

1,878.9172.9

1,706.1559.7571.7326.7248.0

223.538.325.079.0

32.348.9

186.3

2,812.2

1,971.2598.1531.7841.4435.7225.5179.8

329.9

193.5

2,218.6478.7305.7173.019.6

1,720.3133.3

1,587.0470.6561.9326.4228.1

207.836.524.978.4

30.637.3

130.0

2,556.4

1,909.1589.5529.5790.1345.7125.0176.6

Nov.

2,389.9508.0317.3190.720.3

1,861.6162.0

1,699.7561.1577.4326.9234.3

215.233.824.076.1

32.948.4

187.5

2,792.6

1,974.1592.0531.1851.0420.1218.9179.5

331.7

196.6

2,213.8482.6306.4176.220.3

1,711.0130.5

1.580.4472.0567.3326.6214.6

199.331.524.075.7

31.436.7

123.7

2,534.8

1,912.4583.7528.8799.9323.2124.8176.3

Dec.

2,430.5514.4321.4193.116.9

1,899.2172.1

1,727.2576.4586.3332.4232.1

232.536.228.579.9

36.651.4

184.0

2,847.1

2,009.1623.3528.0857.9426.2231.5180.4

332.4

198.9

2,238.5488.3311.0177.316.9

1,733.3135.3

1,598.0479.4575.0332.1211.6

214.935.128.479.5

34.737.3

127.2

2,580.7

1,944.6614.9525.7804.1331.9127.0177.2

1988

Jan.

2,416.5516.0323.7192.2

18.21,882.3

160.91,721.4

565.4589.3330.8235.8

209.733.325.870.7

31.348.6

177.7

2,803.9

1,969.0576.2531.7861.1446.1208.1180.7

337.7

196.5

2,232.9488.0312.1175.9

18.21,726.6

131.41,595.2

472.7577.9330.5214.1

192.131.725.770.2

29.734.8

118.9

2,543.9

1,906.9567.9529.4809.6347.0112.5177.5

Feb.

2,424.1515.4323.6191.821.9

1,886.9162.8

1,724.1570.4592.7330.4230.6

203.332.825.166.8

30.048.5

178.1

2,805.5

1,975.0567.5535.6871.8444.2205.3181.0

340.8

196.5

2,237.8487.6312.2175.421.9

1,728.3133.4

1,595.0475.6580.3330 1209.0

184.430.525.166.3

28.434.0

121.4

2,543.6

1,912.2559.6533.2819.4344.8108.8177.8

Mar.

2,444.6518.3324.6193.720.3

1,906.0161.0

1,745.0576.9600.0332.7235.4

207.932.124.874.1

31.645.3

189.0

2,841.5

2,004.1587.6539.787S.8446.3211.1180.0

340.1

198.5

2,255.8490.4313.1177.220.3

1,745.1132.2

1,612.9480.7587.3332.4212.5

191.730.124.773.6

30.033.4

126.8

2,574.3

1,940.1579.2537.3823.6343.4114.0176.8

Apr.

2,462.9520.3328.1192.1

19.61,923.0

161.61,761.5

584.1605.9335.9235.6

210.832.225.476.4

30.646.2

185.2

2,859.0

2,007.2595.0536.0876.2456.3214.1181.4

342.8

197.1

2,272.0493.8316.8177.019.6

1,758.6129.0

1,629.7487.2593.0335.6213.9

194.330.825.475.9

29.033.3

125.1

2,591.5

1,943.7586.4533.6823.7351.0118.5178.2

May

2,469.0522.5330.0192.620.3

1,926.2154.0

1,772.1588.7613.9336.3233.2

197.026.025.471.6

29.544.6

182.0

2,848.0

2,004.6578.1542.0884.4448.7211.8182.9

345.7

197.2

2,277.3495.2317.7177.620.3

1,761.8125.5

1,636.3488.8600.5336.0211.0

180.823.625.471.1

27.832.9

121.7

2,579.7

1,940.6569.8539.6831.2344.2115.2179.7

June

2,509.0519.8327.1192.722.3

1,966.9166.7

1,800.2600.2621.3339.2239.5

218.334.426.577.2

31.948.3

189.3

2,916.6

2,038.3602.3544.5891.6478.8215.0184.4

344.0

198.1

2,304.1492.5315.2177.322.3

1,789.4133.6

1,655.8492.5607.8338 9216.5

199.432.926.476.6

30.133.4

129.6

2,633.2

1,972.7593.6541.7837.4362.6116.7181.2

1. Back data are available from the Banking and Monetary Statistics section.Board of Governors of the Federal Reserve System, Washington, D.C., 20551.These data also appear in the Board's weekly H.8 (510) release.

Figures are partly estimated. They include all bank-premises subsidiaries andother significant majority-owned domestic subsidiaries. Loan and securities datafor domestically chartered commercial banks are estimates for the last Wednes-day of the month based on a sample of weekly reporting banks and quarter-endcondition report data. Data for other banking institutions are estimates made for

the last Wednesday of the month based on a weekly reporting sample offoreign-related institutions and quarter-end condition reports.

2. Commercial banking institutions include insured domestically charteredcommercial banks, branches and agencies of foreign banks. Gage Act andAgreement corporations, and New York State foreign investment corporations.

3. Insured domestically chartered commercial banks include all member banksand insured nonmember banks.

Weekly Reporting Commercial Banks A19

1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS1

Millions of dollars, Wednesday figures

Account1988

May 4 May 11 May 18 May 25 June 1 June 8 June 15 June 22 June 29

1 Cash and balances due from depository institutions2 Total kniu, leases, and securities, net3 U.S. Treasury and government agency4 Trading account5 Investment account6 Mortgage-backed securities2

All other maturing in7 One year or less8 Over one through five years9 Over five years

10 Other securities11 Trading account12 Investment account13 States and political subdivisions, by maturity14 One year or less15 Over one year16 Other bonds, corporate stocks, and securities17 Other trading account assets18 Federal funds sold3

19 To commercial banks20 To nonbank brokers and dealers in securities21 To others22 Other loans and leases, gross23 Other loans, gross24 Commercial and industrial25 Bankers acceptances and commercial paper26 All other27 U.S. addressees28 Non-U.S. addressees29 Real estate loans30 Revolving, home equity31 All other32 To individuals for personal expenditures33 To depository and financial institutions34 Commercial banks in the United States35 Banks in foreign countries36 Nonbank depository and other financial institutions . . . .37 For purchasing and carrying securities38 To finance agricultural production39 To states and political subdivisions40 To foreign governments and official institutions —41 Allother42 Lease financing receivables43 LESS: Unearned income ,44 Loan and lease reserve45 Other loans and leases, net46 All other assets47 ToUl assets48 Demand deposits49 Individuals, partnerships, and corporations50 States and political subdivisions51 U.S. government52 Depository institutions in the United States53 Banks in foreign countries54 Foreign governments and official institutions55 Certified and officers' checks56 Transaction balances other than demand deposits57 Nontrsnsaction balances58 Individuals, partnerships, and corporations59 States and political subdivisions60 U.S. government61 Depository institutions in the United States62 Foreign governments, official institutions, and banks .63 Liabilities for borrowed money64 Borrowings from Federal Reserve Banks65 Treasury tax-and-loan notes >66 All other liabilities for borrowed money3

67 Other liabilities and subordinated notes and debentures .68 Total liabilities69 Residual (total assets minus total liabilities)6

MEMO70 Total loans and leases (gross) and investments adjusted7 . . .71 Total loans and leases (gross) adjusted7

72 Time deposits in amounts of $100,000 or more73 U.S. Treasury securities maturing in one year or less74 Loans sold outright to affiliates—total"75 Commercial and industrial76 Other77 Nontransaction savings deposits (including MMDAs)

109,0221,130,200130,547r15,299115,248'41,541r

17,764'46,784'9,159'

73,434'2,01571,419'48,8515,915

42,93622,568'3,488

82,68548,02523,29011,370

881,412860,133301,911'2,299'

299,612'296,952

2,661'274,26619,046

255,220162,23249,55223,0603,876

22,61612,2185,575

31,3032,14820,92821,2794,834

36,532840,046128,413

1,367,634238,177183,8377,8365,277

24,9836,425842

8,97672,688

592,396552,584'29,021'

9629,032796

295,0461,825

25,331267,89082,484

1,280,79086,844

1,100,481893,012181,47817,081'1,4941,026468

250,664

103,9761,112,048130,852'16,042114,810'41,625'

17,023'47,041'9,121'

73,290'1,910

71,381'48,8305,92442,90622,551'3,290

66,04137,53919,1439,358

879,984858,699300,851'2,121

298,729'2 % , 123

2,606'275,08419,160

255,925162,16649,50022,9903,975

22,53411,8795,620

31,1282,158'20,31421,2854,85636,553838,575127,693

1,343,717222,603176,6125,6212,853

20,9886,813710

9,00671,172592,832552,432'29,728'

9608,940772

286,6161,550

26,124258,94283,109

1,254,33287,385

1,092,927885,495181,83417,038'1,5021,034468

250,551

101,9011,116,620131,578'16,321115,257'41,668'

16,92847,434'9,226'

72,978'1,58771,W48,7825,905

42,87722,608'2,812

69,83442,44518,9998,390

880,879859,624300,003'2,106'

297,897'295,354'

2,542'276,13019,272

256,858161,785'49,24623,2973,600

22,35013,1985,634

31,1122,136'20,37921,2564,909

36,552839,418128,287

1,346,808224,955176,4415,8894,14222,9706,036854

8,62471,047

594,807553,904'30,197'1,0508,923732

283,9242,502

20,105261,31784,773

1,259,50687,303

1,092,340884,972182,07616,082'1,5251,064460

252,228

91,7011,113,781132,517'15,668

116,849'42,209'

17,422'47,676'9,543'72,946'1,634'

71,311'48,739'5,867'

42,872'22,572'2,96668,10541,38617,4109,309

878,705857,252298,743'2,088

296,655'294,106'

2,548'277,24419,365

257,879161,957'48,93222,8113,77122,35011,7045,66630,9932,051'19,96121,4534,919

36,539837,247122,326

1,327,807215,417170,8515,6292,12121,0355,998623

9.15970,279

595,070554,076'30,377'1,0598,842716

274,3372,40017,846

254,09185,751

1,240,85486,953

1,091,042882,613182,31517,168'1,5341,088447

252,015

133,4431,139,009132,00016,311115,69041,833

17,13647,1839,53873,7721,719

72,05348,5315,661

42,87023,5223,26285,34652,60821,69511,044

886,011864,508299,2722,232

297,040294,4292,611

277,44719,448

257,998162,48950,40223,1644,05523,18413,7375,71531,0062,23522,20621,5034,883

36,500844,628126,489

1,398,940268,245205,9297,3311,536

32,1327,719892

12,70573,306

596,663555,87030,1911,0648,824713

287,7212,55013,599

271,57284,911

1,310,84688,094

1,104,620895,586180,49316,5101,4741,027447

255,212

103.5381,123,319133,97318,859

115,11441,866

16,58847,1319,53073,3201,654

71,66648,2755,633

42,64223,3922,972

71,90442,94318,66910,292

882,488860,702299,934

2,206297,729295,1092,619

277,86819,566

258,302162,56049,67723,2293,829

22,61911,5685,745

30,8971,950

20,50321,7864,896

36,442841,149122,480

1,349,337226,593179,5925,3363,153

21,7646,283732

9,73373,295598,320557,37930,3831,0328,793714

277,6932,9003,066

271,72784,632

1,260,53488,803

1,098,485888,219182,32917,1431,4681,018449

254,595

123,0971,14434

134,74721,246

113,50241,329

16,42646,1869,561

73,4151,929

71,48648,2125,590

42,62123,2743,418

86,83953,73222,45610,651

887,250865,401300,612

2,083298,529295,964

2,565278,928

19,686259,242162,54849,18122,6404,071

22,46913,7725,609

30,8372,080

21,83321,8504,903

36,384845,964127,252

1,394,733263,607198,136

7,02315,72326,0866,225

7779,635

73,605599,690558,81430,374

1,0598,681

762283,733

3,8533,061

276,81885,712

1,306,347

88,386

1,109,298897,717182,66216,4771,403

953450

255,227

100,2361,124,669

131,58418,016

113,56741,904

16,17645,9889,499

72,8571,690

71,16648,1385,541

42,59823,0283,257

70,77042,18419,6108,976

887,516865,604300,399

2,111298,288295,736

2,552279,800

19,838259,962162,46449,83223,3034,198

22,33012,8565,672

30,7931,978

21,81021,9124,939

36,376846,201123,042

1,347,947222,352175,839

6,4632,785

20,9396,988

6878,650

71,019601,289560,65930,046

1,0708,726

789282,480

1,80026,044

254,63682,502

1,259,64288,304

1,100,497892,799184,66915,5341,441

989452

254,349

107,9431,128,637

130,13216,677

113,45541,742

16,71545,3689,630

73,1441,939

71,20448,006

5,34842,65923,1983,459

74,58347,64018,2498,694

888,317866,365300,901

2,158298,743296,212

2,531280,873

19,970260,904162,47048,61122,1083,786

22,71713,7125,614

30,7591,982

21,44321,9524,913

36,086847,318128,183

1,364,763232,704182,577

5,9793,008

22,4337,1701,091

10,44670,702

599,672559,87129,213

1,0808,715

793287,766

1,67525,580

260,51185,491

1,276,33588,428

1,099,888893,153183,50016,2801,5221,068

454253,607

1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revisedsomewhat, eliminating some former reporters with less than $2 billion of assetsand adding some new reporters with assets greater than $3 billion.

2. Includes U.S. government-issued or guaranteed certificates of participationin pools of residential mortgages.

3. Includes securities purchased under agreements to resell.4. Includes allocated transfer risk reserve.5. Includes federal funds purchased and securities sold under agreements to

repurchase; for information on these liabilities at banks with assets of $1 billion ormore on Dec. 31,1977, see table 1.13.

6. This is not a measure of equity capital for use in capital-adequacy analysis orfor other analytic uses.

7. Exclusive of loans and federal funds transactions with domestic commercialbanks.

8. Loans sold are those sold outright to a bank's own foreign branches,nonconsolidated nonbank affiliates of the bank, the bank's holding company (ifnot a bank), and nonconsolidated nonbank subsidiaries of the holding company.


1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKSIN NEW YORK CITY1


Account

1988

May 4 May 11 May 18 May 25 June 1 June 8 June 15 June 22 June 29

1 Cash balances due from depository institutions

2 Total loans, leases and securities, net2

Securities3 U.S. Treasury and government agency3

4 Trading account3

5 Investment account6 Mortgage-backed securities*

Another maturing in7 One year or less8 Over one through five years9 Over five years

10 Other securities3 ,11 Trading account

Investment accountStates and political subdivisions, by maturity ,

One year or lessOver one year

1213141516 Other bonds, corporate stocks, and securities.17 Other trading account assets'

Loans and leases18 Federal funds sold5

19 To commercial banks20 To nonbank brokers and dealers in securities21 To others22 Other loans and leases, gross23 Other loans, gross

Commercial and industrialBankers acceptances and commercial paperAll other

U.S. addresseesNon-U.S. addressees

Real estate loansRevolving, home equityAllother

To individuals for personal expendituresTo depository and financial institutions

Commercial banks in the United StatesBanks in foreign countriesNonbank depository and other financial institutionsr purchasing and carrying securities

e p y other n cFor purchasing and carrying securitiesTo finance agricultural production

d l i i l bdg poductio

To states and political subdivisionsTo foreign governments and official institutionsAllother

42 Lease financing receivables43 LESS: Unearned income44 Loan and lease reserve45 Other loans and leases, net"46 All other assets7

47 Total assets

Deposits48 Demand deposits49 Individuals, partnerships, and corporations50 States and political subdivisions51 U.S. government52 Depository institutions in the United States53 Banks in foreign countries54 Foreign governments and official institutions55 Certified and officers' checks56 Transaction balances other than demand deposits

(ATS, NOW, Super NOW, telephone transfers) . . .57 Nontransaction balances58 Individuals, partnerships, and corporations59 States and political subdivisions60 U.S. government61 Depository institutions in the United States62 Foreign governments, official institutions, and banks .63 Liabilities for borrowed money64 Borrowings from Federal Reserve Banks65 Treasury tax-and-loan notes66 All other liabilities for borrowed money67 Other liabilities and subordinated notes and debentures .

68 Total liabilities

69 Residual (total assets minus total liabilities)9

MEMO

70 Total loans and leases (gross) and investments adjusted •71 Total loans and leases (gross) adjusted10

72 Time deposits in amounts of $100,000 or more73 U.S. Treasury securities maturing in one year or l e s s . . .

25,427

225,498

00

15,422'5,725'

2,653'4,6412,403'

00

16,702'12,9081,009

11,8993,794'

0

38,18615,47614,5388,173

170,413165,47858,943

53158,41257,968

44546,424

2,88843,53621,33820,82412,0102,3026,5124,351

2716,981

6235,7234,9341,490

13,737155,18657,960

308,884

58,09340,057

9311,0146,4845,190

6983,720

8,716104,81996,784

5,99726

1,744267

80,4260

6,95073,47732,047

284,102

24,783

213,238181,11337,8%

3,852

23,881

215,113

00

14,951'5,722'

2,218'4,6842,326'

00

16,646'12,9511,010

11,9413,695'

0

29,30511,41011,2536,642

169,490164,54758,228

47457,75457,313

44146,339

2,89943,44021,37221,16812,3582,4646,3464,116

2816,918

6255,4984,9431,507

13,772154,21158,133

297,128

52,35436,359

581565

4,7645,503

5664,017

8,566104,55696,401

6,22831

1,629266

75,6400

7,55968,08130,955

272,071

25,057

206,624175,02737,5863,998

21,175

215,645

00

15,4045,819

2,7084,7192,158

00

16,63312,9411,003

11,9383,692

0

29,34912,10111,4935,754

169,569164,63257,270

47256,79856,381

41746,592

2,91043,68221,39720,85412,3362,0996,4195,471

2786,909

6205,2404,9371,527

13,783154,25960,842

297,662

54,11037,350

827823

6,2004,802

6943,413

8,618105,37996,884

6,53735

1,661262

73,1620

6,02867,13431,396

272,665

24,997

206,517174,48037,834

3,579

18,552

214,427

00

15,1615,521

2,7424,7272,172

00

16,58012,942

99611,9463,638

0

29,54413,9028.9896.652

168,466163,50557,214

46356,75256,340

41246,634

2,92743,70721,45420,70011,9722,2426,4864,318

2946,876

5485,4674,9601,542

13,782153,14257,150

290,129

52,17036,355

701394

5,3484,784

4614,128

8,561105,88297,0886,765

381,729

26266,224

05,384

60,84032,516

265,354

24,775

203,876172,13538,1703,982

35,082

226,149

00

14,8565,520

2,4144,7502,171

00

16,80112,9501,002

11,9473,852

0

38,13916,98413,0268,129

171,689166,72057,161

48756,67456,204

47046,666

2,93743,72821,52921,24711,9932,5126,7425,893

2896,904

7336,2974,9691,520

13,817156,35260,885

322,116

72,30047,495

1,109207

10,2776,448

7536,011

8,873106,19597,5326,667

411,695

26176,690

04,098

72,59232,541

296,600

25,516

212,508180,85137,3463,620

25,185

215,179

00

14,8825,513

2,3854,8092,175

00

16,80212,949

99611,9533,853

0

30,35712,09910,4117,846

168,464163,23857,189

45456,73556,302

43346,767

2,95043,81821,52320,67012,2102,2226,2383,935

2916,952

4815,4295,2261,532

13,794153,13758,708

299,072

55,00337,919

579646

5,5205,057

5844,697

8,812105,23296,4906,702

301,751

25872,151

0677

71,47431,988

273,186

25,886

206,1%174,51237,3344,262

33,809

228,243

0o

14,8185,512

2,3254,8392,141

00

16,79812,953

98611,9673,846

0

39,54218,37413,4677,701

172,414167,15958,122

43157,69157,284

40746,6702,966

43,70321,49121,01012,0272,5446,4395,717

3026,886

6566,3065,2551,537

13,793157,08561,415

323,466

70,94847,320

1,2264,6248,0265,049

6254,078

8,952105,894%,922

6,85133

1,816272

78,023725609

76,68933,992

297,810

25,656

213,172181,55537,350

3,700

21,791

218,686

00

14,7475,453

2,3154,8382,141

00

16,67912,937

97911,9583,742

0

30,76613,95110,4856,330

171,832166,55757,548

42257,12656,730

3 %46,%2

2,98043,98221,30222,02712,8%2,7636,3684,556

2986,866

5756,4225,2751,546

13,791156,49456,621

297,099

54,34837,910

631483

5,4395,761

5053,618

8,6%106,29097,125

7,00142

1,817303

72,7180

7,52665,19229,545

271,596

25,502

207,178175,75237,767

3,158

27,325

218,753

00

14,7025,431

2,3114,8112,149

00

16,44412,866

86612,0003,578

0

32,54516,5739,7306,242

170,391165,11057,389

44656,94356,515

42847,041

2,99544,04620,92820,73011,9442,2476,5405,480

2956,836

6075,8045,2811,564

13,765155,06259,094

305,172

59,10540,222

775560

6,0785,934

8584,679

8,644105,347%,600

6,65742

1,740307

73,8500

6,87966,97132,797

279,743

25,430

205,565174,41937,031

3,302

1. These data also appear in the Board's H.4.2 (504) release. For address, seeinside front cover.

2. Excludes trading account securities.3. Not available due to confidentiality.4. Includes U.S. government-issued or guaranteed certificates of participation

in pools of residential mortgages.5. Includes securities purchased under agreements to resell.6. Includes allocated transfer risk reserve.

7. Includes trading account securities.8. Includes federal funds purchased and securities sold under agreements to

repurchase.9. Not a measure of equity capital for use in capital adequacy analysis or for

other analytic uses.10. Exclusive of loans and federal funds transactions with domestic commer-

cial banks.

Weekly Reporting Commercial Banks A21

1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets andLiabilities


Account

May 4 May II May 18 May 25 June 1 June 8 June 13 June 22 June 29

1 Cash and due from depository institutions . .2 Total loans and securities3 U.S. Treasury and government agency

securities4 Other securities.5 Federal funds sold5

6 To commercial banks in the United States7 To others8 Other loans, gross9 Commercial and industrial

10 Bankers acceptances and commercialpaper

11 All other12 U.S. addressees13 Non-U.S. addressees14 To financial institutions15 Commercial banks in the United States.16 Banks in foreign countries17 Nonbank financial institutions18 To foreign governments and official

institutions19 For purchasing and carrying securities. . .20 Allother21 Other assets (claims on nonrelated 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 balances3

26 Individuals, partnerships, andcorporations

27 Other28 Nontransaction accounts4

29 Individuals, partnerships, andcorporations

30 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 money36 To commercial banks in the

United States37 To others38 Other liabilities to nonrelated parties39 Net due to related institutions40 Total liabilities

MEMO41 Total loans (gross) and securities adjusted' .42 Total loans (gross) adjusted'

10,110104,293

8,1667,6218,8695,8203,050

79,63753.061

1,46651,59549,541

2,05414,67810,816

9962,865

5631,5089.826

31,15515,921

161,479

41,8473,344

2,1111,233

38,503

31,2577,246

65,80633,087

15,98217,10532,719

24,462'8,257r

32,57721,249

161,479

87,65771,870

11,916104,249

8,3227,5929,0366,1472,889

79,29853,239

1,58751,65249,654

1,99814,39810,2721,0643,063

5741,2139,874

30,93615,278

162,381

41,8313,203

1,9261,277

38,628

31,3877,241

64,07730,681

14,63416,04833,396

24,957'8,438'

32,71223,760

162,381

87,83071,916

10,064105,090

7,8787,457

10,3407,4162,925

79,41452,810

1,53851,27249,207

2,06514,85810,562

9843,312

5711,3019,873

31,40215,420

161,977

41,7253,121

2,1011,019

38,604

31,4207,184

62,31530,454

16,13014,32431,861

23,458'8,403'

32,63025,307

161,977

87,11271,776

9,968104,381

8,2867.5358,3975,9002,497

80,16353,674

1,49152,18350,061

2,12114,68010,636

1,0602,985

5621,3669.880

31,28915,074

160,712

42,2623,320

1,9651,355

38,942

31,7437,199

62,89631,201

16,04115,16031,695

23,918'7,777'

32,86122,693

160,712

87,84572,024

11,174105,741

7,7807,6058,4695,5462,923

55,094

1,67853,41551,398

2,01715,05210,417

1,146»3,489

5961,3829,763

31,36615,942

164,223

42,2173,758

2,3221,435

38,459

31,1877,272

66,54232,883

16,32816,55633,659

25,0898,570

32,67622,787

164,223

89,77874,393

10,467105,264

7,8927,6057,6105,1372,47382,15755,245

1,64153,60451,5902,01415,16110,8551,1803,126

S851,4339,73231,23116,704163,666

42,5663,616

2,3121,304

38,950

31,8337,116

65,96532,712

16,78815,92433,253

24,1849,069

32,92622,209163,666

89,27273,775

11,571108,728

8,3527,609

10,8427,6453,197

81,92654,911

1,60453,30651,317

1,99014,83410,489

1,0373,308

5861,6229,972

31,41817,879

169,597

42,8583,827

2,4481,379

39,031

31,9247,107

70,98837,834

20,80717,02733,154

23,3649,791

33,10422,647

169,597

90,59474,634

10,705107,658

8,2347,6097,6724,8572,815

84,14456,536

1,70754,82952,794

2,03415,24410,9231,1273,194

5581,8119,994

31,38215,546

165,291

42,9063,852

2,2611,591

39,054

31,7157,339

66,81631,781

15,56116,22035,035

25,2369,799

32,96922,600

165,291

91,87976,036

11,604111,043

8,1027,5959,7646,8272,937

85,58357,718

1,57456,14454,092

2,05215,29611,334

9183,044

5622,1009,907

32,33515,269

170,251

43,1223,680

2,1341,546

39,442

32,2687,174

70,29632,614

16,05316,56237,682

26,58111,10033,78723,046

170,251

92,88277,185

1. Effective 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. 31,1984. These data also appear in theBoard's H.4.2 (504) release. For address, see inside front cover.

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 time depos-

its.5. Includes securities sold under agreements to repurchase.6. Exclusive of loans to and federal funds sold to commercial banks in the

United States.


1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations'

Billions of dollars, estimated daily-average balances, not seasonally adjusted

Type of holder

1 AU holder*-Individuals, partnerships, and

6 Other

7 All holders—Individuals, partnerships, and

11 Foreign12 Other

Commercial banks

1982Dee.

291.8

35.4150.585.93.0

17.0

1982Dec.

i

144.2

26.774.331.92.98.4

1983Dec.

293.5

32.8161.178.53.3

17.8

1983Dec.

146.2

24.279.829.73.19.3

1984Dec.

302.7

31.7166.381.53.6

19.7

1984Dec.2

1S7.1

25.387 130.53.4

10.9

1985Dec.3'4

321.0

32.3178.585.5

3.521.2

1986

Dec.

363.6

41.4202.091.1

3.325.8

1987

Mar.

335.9

35.9183.088.9

2.925.2

June

340.2

36 6187.290.1

3.223.1

Sept.

339.0

36.5188.288.7

3.222.4

Weekly reporting banks

1985Dec.5'4

168.6

25.994.533.23.1

12.0

1986

Dec.

195.1

32.5106.437.53.3

15.4

Dec/

343.5

36.3191.990.0

3.421.9

1987

Mar.

178.1

28.794.436.82.8

15.5

June

179.3

29.394837.53.1

14.6

Sept.

179.1

29.396.037.23.1

13.5

Dec.'

183.8

28.6100.039.13.3

12.7

1988

Mar.

328.6

33.9184.186.9

3.520.3

1988

Mar.5

181.8

27.098.241.73.4

11.4

1. Figures include cash items in process of collection. Estimates of grossdeposits are based on reports supplied by a sample of commercial banks. Typesof depositors in each category are described in the June 1971 BULLETIN, p. 466.Figures may not add to totals because of rounding.

2. Beginning in March 1984, these data reflect a change in the panel of weeklyreporting banks, and are not comparable to earlier data. Estimates in billions ofdollars for December 1983 based on the new weekly reporting panel arc: financialbusiness, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other9.5.

3. Beginning March 1985, financial business deposits and, by implication, totalgross demand deposits have been redefined to exclude demand deposits due tothrift institutions. Historical data have not been revised. The estimated volume ofsuch deposits for December 1984 is $5.0 billion at all insured commercial banksand $3.0 billion at weekly reporting banks.

4. Historical data back to March 1985 have been revised to account forcorrections of bank reporting errors. Historical data before March 1985 have notbeen revised, and may contain reporting errors. Data for all commercial banks forMarch 1985 were revised as follows (in billions of dollars): all holders, - . 3 ;financial business, - . 8 ; nonfinancial business, - . 4 ; consumer, .9; foreign, .1;other, - . 1 . Data for weekly reporting banks for March 1985 were revised asfollows (in billions of dollars); all holders, - . 1 ; financial business, - . 7 ; nonfinan-cial business, - . 5 ; consumer, 1.1; foreign, .1; other, - . 2 .

5. Beginning March 1988, these data reflect a change in the panel of weeklyreporting banks, and are not comparable to earlier data. Estimates in billions ofdollars for December 1987 based on the new weekly reporting panel are: financialbusiness, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other,13.1.

Financial Markets A23

1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING

Millions of dollars, end of period

Instrument 1983Dec.

1984Dec.

1985Dec.

1986Dec.

1987Dec.

1987

Dec.

1988

Jan.1 Feb. Mar. Apr. May

Commercial paper (seasonally adjusted unless noted otherwise)

1 All Issuers

Financial companies2

Dealer-placed paper2 Total3 Bank-related (not seasonally

adjusted)Directly placed paper

4 Total5 Bank-related (not seasonally

adjusted) v6 Nonfinancial companies3

7 Total

Holder8 Accepting banks9 Own bills

10 Bills boughtFederal Reserve Banks

11 Own account12 Foreign correspondents..13 Others

Basis14 Imports into United States.15 Exports from United States16 All other

187,658

44,455

2,441

97,042

35,56646,161

£37,586

56,485

2,035

110,543

42,10570,558

298,779

78,443

1,602

135,320

44,77885,016

329,991

101,072

2,265

151,820

40,86077,099

357,129

101,958

1,428

173,939

43,17381,232

357,129

101,958

1,428

173,939

43,17381,232

380,339

120,930

1,694

175,467

45,42583,942

388,893

125,914

1,724

174,595

43,98788,384

391,305

128,680

1,371

173,316

43,68189,309

406,484

133,946

1,093

180,119

45,70392,419

Bankers dollar acceptances (not seasonally adjusted)6

78,309

9,3558,1251,230

418729

67,807

15,64916,88045,781

78,364

9,8118,6211,191

0671

67,881

17,84516,30544,214

68,413

11,1979,4711,726

0937

56,279

15,14713,20440,062

64,974

13,42311,7071,716

01,317

50,234

14,67012,96037,344

70,565

10,9439,4641,479

0965

58,658

16,48315,22738,855

70,565

10,9439,4641,479

0965

58,658

16,48315,22738,855

62,957'

8,602r

7,759r

843

0831

53,524'

14,468'14,05434,436'

62,419

9,6298,5611,067

0833

51,958

14,35413,89134,173

63,454

10,2438,8251,417

0795

52,417

14,57513,89934,980

64,112

10,2958,9291,366

0803

53,014

14,71514,74634,652

414,312

137,838

1,422

185,876

47,71990,598

63,332

9,3228,498

825

01,050

52,960

13,97414,59034,768

1. Data reflect a break in series resulting from additions to the reportingpanel and from the correction of a misclassification that had understated dealer-placed financial and overstated nonfinancial outstandings.

2. Institutions engaged primarily In activities such as, but not limited to,commercial sayings, and mortgage banking; sales, personal, and mortgage fi-nancing; factoring, finance leasing, and other business lending; insurance under-writing; and other investment activities.

3. Includes all financial company paper sold by dealers in the open market.4. As reported by financial companies that place their paper directly with

investors.

5. Includes public utilities and Arms engaged primarily in such activities ascommunications, construction, manufacturing, mining, wholesale and retail trade,transportation, and services.

6. Beginning January 1988, the number of respondents in the bankers accep-tance survey were reduced from 155 to 111 institutions—those with $100 millionor more in total acceptances. The new reporting group accounts for over 90percent of total acceptances activity.

1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans

Percent per year

Effective date

1985—Jan. 15May 20June 18

1986-Mar. 7Apr. 21July 11Aug. 26

Rate

10.5010.009.50

9.008.508.007.50

Effective Date

1987 Apr. 1^ , 5Sept. 4Oct. 7

22Nov. 5

1988-Feb. 2May 11July 14

Rate

7.758.008.258.759.259.008.75

8.509.009.50

Month

1985—JanFebMar

MayJuneJulyAugSeptOctNovDec

1986—JanFebMarAprMayJuneJulyAugSeptOct

Averagerate

10.6110.5010.5010.5010.319.789.509.509.509.509.509.50

9.509.509.108.838.508.508.167.907.507.50

Month

1986-NovDec

1987-JanFebMarAprMayJuneJulyAugSeptOctNovDec

1988-JanFebMarAprMayJune

Averagerate

7.507.50

7.507.507.507.758.148.258.258.258.709.078.788.75

8.758.518.508.508.849.00

NOTE. These data also appear in the Board's H.15 (519) release. For address,see inside front cover.


1.35 INTEREST RATES Money and Capital Markets

Averages, percent per year; weekly and monthly figures are averages of business day data unless otherwise noted.

Instrument

MONEY MARKET RATES

1 Federal funds1'2

Commercial paper-5

3 1-month

Finance paper, directly placed*'5

Bankers acceptances5'6

9 3-month10 6-month

Certificates of deposit, secondary marker11 1-month

U.S. Treasury bills*Secondary marker

15 3-month

17 1-yearAuction average1"

18 3-month

20 1-year

CAPITAL MARKET RATES

U.S. Treasury notes and bonds11

Constant maturities12

25 7-year26 10-year27 20-year28 30-year

Composite'3

29 Over 10 years (long-term)State and local notes and bonds

Moody's series14

30 Aaa31 Baa

Corporate bondsSeasoned issues16

33 All industries34 Aaa35 Aa36 A37 Baa38 A-rated, recently-offered utility

MEMO: Dividend/price ratio18

39 Preferred stocks

1985

8.107.69

7.937.958.00

7.907.777.74

7.917.95

7.968.048.248.28

7.477.657.81

7.477.647.80

8.429.279.64

10.1210.5010.6210.9710.79

10.75

8.609.589.11

12.0511.3711.8212.2812.72

12.06

10.494.25

1986

6.806.32

6.616 496.39

6.576.386.31

6.386.28

6.616.516.506.71

5.976.026.07

5.986.036.18

6.456.867.067 307.547.677.857.78

8.14

6.957.767.32

9 719.029.479.95

10.39

9.61

8.763.48

1987

6.665.66

6.746 826.85

6.616.546.37

6 756.78

6.756.877.017.06

5.786.036.33

5.826.056.33

6.777.427.687948.238.39

8.59

8.64

7.148.177.64

9.919.389.689.99

10.58

9.95

8.373.08

1988

Mar.

6.586.00

6.576.626.64

6.446.386.23

6.516.55

6.566.636.786.74

5.705.916.28

5.695.916.30

6.717.277.507.838.198.37

8.63

8.61

7.207.807.74

9.869.399.599.89

10.57

9.91

9.073.48

Apr.

6.876.00

6.806.866.92

6.716.676.51

6.796.86

6.806.927.147.05

5.916.216.56

5.926.216.57

7.017.597.838.198.528.72

8.95

8.91

7.337.827.81

10.159.679.86

10.1710.90

10.23

9.193.57

May

7.096.00

7.077.197.31

6.967.006.75

7.127.25

7.047.247.527.40

6.266.566.90

6.276.536.74

7.408.008.248.588.899.09

9.23

9.24

7.567.907.90

10.379.90

10.1010.4111.04

10.61

9.253.80

June

7.516.00

7.417.497.53

7.237.257.01

7.387.41

7.417.517.697.61

6.466.716.99

6.506.767.08

7.498.038.228.498.788.92

9.00

9.04

7.517.867.78

10.369.86

10.1310.4211.00

10.41

9.323.58

May 27

7.146.00

7.177.307.42

7.007.116.86

7.227.35

7.157.347.637.44

6.356.767.07

6.346.71

7.588.188.408.739.049.22

9.33

9.36

7.657.907.96

10.4710.0210.1910.5411.07

10.70

9.293.82

1988

June 3

7.416.00

7.387.477.55

6.987.306.96

7.347.42

7.387.507.737.60

6.456.797.08

6.536.83

7.598.128.348.618.919.07

9.16

9.17

7.637.907.87

10.4710.0010.2510.5311.11

10.43

9.353.64

, week ending

June 10

7.376.00

7.367.457.50

7.217.266.95

7.337.35

7.357.457.647.60

6.436.676.97

6.446.727.08

7.468.008.208.508.808.96

9.06

9.07

7.507.907.78

10.449.93

10.2210.5111.09

10.46

9.343.58

June 17

7.436.00

7.357.437.46

7.177.156.97

7.337.34

7.357.447.617.51

6.366.616.91

6.446.67

7.407.948.138.418.708.84

8.95

8.99

7.457.807.73

10.319.80

10.0810.3811.08

10.47

9.293.54

June 24

7.546.00

7.437.527.55

7.337.247.05

7.437.46

7.447.557.747.61

6.506.787.02

6.516.83

7.538.088.268.528.808.94

8.98

9.05

7.457.727.77

10.299.79

10.0810.3710.97

10.36

9.223.60

1. Weekly and monthly figures are averages of all calendar days, where therate for a weekend or holiday is taken to be the rate prevailing on the precedingbusiness day. The daily rate is the average of the rates on a given day weighted bythe volume of transactions at these rates.

2. Weekly figures are averages for statement week ending Wednesday.3. Rate for the Federal Reserve Bank of New York.4. Unweighted average of offering rates quoted by at least five dealers (in the

case of commercial paper), or finance companies (in the case of finance paper).Before November 1979, maturities for data shown are 30-59 days, 90-119 days,and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and150-179 days for finance paper.

5. Yields are quoted on a bank-discount basis, rather than in an investmentyield basis (which would give a higher figure).

6. Dealer closing offered rates for top-rated banks. Most representative rate(which may be, but need not be, the average of the rates quoted by the dealers).

7. Unweighted average of offered rates quoted by at least five dealers early inthe day.

8. Calendar week average. For indication purposes only.9. Unweighted average of closing bid rates quoted by at least five dealers.

10. Rates are recorded in the week in which bills are issued. Beginning with theTreasury bill auction held on Apr. 18, 1983, bidders were required to state thepercentage yield (on a bank discount basis) that they would accept to two decimal

places. Thus, average issuing rates in bill auctions will be reported using tworather than three decimal places.

11. Yields are based on closing bid prices quoted by at least five dealers.12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields

are read from a yield curve at fixed maturities. Based on only recently issued,actively traded securities.

13. Averages (to maturity or call) for all outstanding bonds neither due norcallable in less than 10 years, including one very low yielding "flower" bond.

14. General obligations based on Thursday figures; Moody's Investors Service.15. General obligations only, with 20 years to maturity, issued by 20 state and

local governmentaTunits of mixed quality. Based on figures for Thursday.16. Daily figures from Moody's Investors Service. Based on yields to maturity

on selected long-term bonds.17. Compilation of the Federal Reserve. This series is an estimate of the yield

on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years ofcall protection. Weekly data are based on Friday quotations.

18. Standard and Poor's corporate series. Preferred stock 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.

NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.For address, see inside front cover.


1.36 STOCK MARKET Selected Statistics

Indicator 1985 1986 19871987

Oct. Nov. Dec

1988


Prices and trading (averages of daily figures)

Common stock prices1 New York Stock Exchange

(Dec. 31, 1965 = 50)2 Industrial3 Transportation4 Utility5 Finance6 Standard & Poor's Corporation

(1941-43 = io ) r

7 American Stock Exchange2

(Aug. 31, 1973 = 50)

Volume of trading (thousands of shares)8 New York Stock Exchange9 American Stock Exchange

10 Margin credit at broker-dealerr'

Free credit balances at brokers4

11 Margin-account'12 Cash-account

13 Margin stocks14 Convertible bonds15 Short sales

108.09123.79104.1156.75

114.21

186.84

229.10

09,1918,355

136.00155.85119.8771.36

147.19

236.34

264.38

141,38511,846

161.70195.31140.3974.29

146.48

286.83

316.61

188,64713,832

157.13189.86140.9573.27

137.35

280.16

306.34

277,02618,173

137.21163.42117.5769.86

118.30

245.01

249.42

179,51311,268

134.88162.19115.8567.39

111.47

240.96

248.52

178,51713,422

140.55168.47121.2070.01

119.40

250.48

267.29

174,7559,853

145.13173.44126.0972.89

124.36

258.13

276.54

184,6889,961

149.88181.57135.1571.16

125.27

265.74

295.78

176,18912,442

148.46181.01133.4069.35

121.66

262.61

300.43

162,51810,706

144.99176.02127.6368.66

120.35

256.12

296.30

153,9068,931

152.72184.92136.0272.25129.04

270.68

306.13

195,77211,348

Customer financing (end-of-period balances, in millions of dollars)

28,390

2,71512,840

36,840

4,88019,000

31,990

4,75015,640

38,250

8,41518,455

34,180

6,70015,360

31,990

4,75015,640

31,320

4,67515,270

31,990

4,55514,695

32,660

4,61514,355

33,27«

4,39513,965

33,070

4,38014,150

32,300

4,58014,460

Margin requirements (percent of market value and effective date)6

Mar. 11, 1968 June 8, 1968

705070

806080

May 6, 1970

655065

Dec. 6, 1971 Nov. 24, 1972

555055

655065

Jan. 3, 1974

505050

nnanciai.2. Beginning July 5, 1983, I

effectively cutting previous rea3. Beginning July 1983, un

1. Effective July 1976, includes a new financial group, banks and insurancecompanies. With this change the index includes 400 industrial stocks (formerly425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40financial.

, the American Stock Exchange rebased its indexvious readings in half.

_ , 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 1984.6. These regulations, adopted by the Board of Governors pursuant to the

Securities Exchange Act of 1934, limit the amount of credit to purchase and carry

"margin securities" (as denned in the regulations) when such credit is collatera-lized by securities. Margin requirements on securities other than options are thedifference between the market value (100 percent) and the maximum loan value ofcollateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,1934; Regulation U, effective May 1,1936; Regulation O, effective Mar. 11, 1968;and Regulation X, effective Nov. 1,1971.

On Jan. 1, 1977, the Board of Governors for the first time established inl i T h i i i l i i d f rii i rii i

pt. 30,1985, the Board changed he required initial margin, a l lo ing it t e thesame as the option maintenance margin required by the appropriate exchange orself-regulatory organization; such maintenance margin rules must be approved bythe Securities and Exchange Commission. Effective Jan. 31, 1986, the SECapproved new maintenance margin rules, permitting margins to be the price of theoption plus 15 percent of the market value of the stock underlying the option.

A26 Domestic Financial Statistics G September 1988

1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and LiabilitiesMillions of dollars, end of period

1985 1986

1987


1988

Jan. Feb.' Mar. Apr.

FSLIC-insured institutions

1 Assets

2 Mortgages3 Mortgage-backed

securities4 Contra-assets to

mortgage assets'5 Commercial loans6 Consumer loans7 Contra-assets to non-

mortgage loam2...8 Cash and investment

securities9 Other1

10 Liabilities and net worth

11 Savings capital12 Borrowed money13 FHLBB14 Other15 Other16 Net worth

1,070,012

690,717

115,525

45,21917,42445,809

2,521

143,538104,739

1,070,012

843,932157,66684,39073,27621,75646,657

1,163,851

697,451

158,193

41,79923,68351,622

3,041

164,844112,898

1,163,851

890,664196,929100,02596,90423,97552,282

1,207,750

701,282

182,067

41,95523,01855,186

3,150

170,788120,514

1,207,750

902,617226,093102,979123,11426,59952,441

1,216,995

704,815

186,101

42,02323,17456,079

3,242

170,071122,020

1,216,995

904,441232,332104,191128,14128,17052,052

1,218,829

708,433

191,829

42,43823,30056,118

3,442

164,034120,995

1,218,829

908,907234,941106,250128,69124,59950,382

1,239,62V

713,483'

196,865'

42,180'23,256'56,548'

3,373

173,114'121,908'

1,239,62c

916,843246,110'109,736136,374'27,094'49,574'

1,246,719'

717,928'

199,777'

41,396'23,29457,465

3,430'

170,702'122,381'

1,246,719'

922,340247,202'111,283liS9&27,399'49,778'

1,250,612'

721,595'

201,557'

42,319'23,171'57,901'

3,467'

169,712'122,462'

1,250,612'

932,612'249,645116,363133,28221,937'46,418'

1,254,585'

722,935'

201,353'

41,210'23,53c58,338'

3,579'

169,932'123,286'

1,254,585'

939,079'245,697'114,053'131,644'23,866'45,943'

1,257,400

723,878

199,677

10,75223,31858,685

3,525

174,075124,073

1,257,400

946,790239,317112,725126,59225,81845,505

1,261,522'

725,556'

197,622'

40,080'24,138'58,403'

3,588'

176,433'124,047'

1,261,522'

958,468'237,440'112,388'125,052'22,484'43,130'

1,274,294

728,820

202,245

38,15224,35059,115

3,491

178,139124,268

1,274,294

962,248244,724113,029131,69524,59842,744

FSLIC-insured federal savings banks

17 Assets

18 Mortgages19 Mortgage-backed

securities20 Contra-assets to

mortgage assets'21 Commercial loans22 Consumer loans23 Contra-assets to non-

131,868

72,355

15,676

8,361

24 Finance leases plusinterest

25 Cash and investment26 Other

27 Liabilities and net worth

28 Savings capital . .29 Borrowed money30 FHLBB31 Other32 Other33 Net worth

11,723

131,868

103,46219,32310,5108,8132,7326,351

210,562

113,638

29,766

13,180

19,034

210,562

157,87237,32919,89717,4324,26311,098

268,779

154,839

42,714

8,7776,27716,089

741

56933,67724,133

268,779

193,89053,65224,98128,6716,138

15,100

272,134

156,048

43,532

8,8536,213

16,549

704

57734,26724,506

272,134

194,85355,66025,54630,1146,45015,172

272,834

156,705

44,421

8,7006,18816,582

702

55233,58924,199

272,834

195,21356,54926,28730,2625,63115,444

276,560

158,507

45,117

8,7876,27516,563

690

55034,90224,122

276,560

197,29857,55127,35030,2016,293

15,416

279,221'

161,014

45,237

8,8096,540

17,343

712

56633,96524,078

279,221'

199,11458,27727,94730,3306,35015,481

284,272'

164,013

45,826'

9,098'6,504'17,696

678'

591'35,347'24,07^

284,272'

203,19660,71629,61731,0995,32415,036'

284,303'

163,918'

46,171'

8,909'6,496'17,649

60434,645'24,428'

284,303'

204,32959,20628,28030,9265,838'14,930'

295,952

171,594

46,687

9,1756,97118,795

737

58435,71825,516

295,952

214,169S9.70429,16930,5356,60215,478

307,738'

178,145'

47,981'

9,436'7,503'19,137'

798'

611'T3S,

26,396'

307,738'

224,168'61,532'30,45631,076'6,075'15,963'

311,400

180,464

49,008

9,3197,66219,610

722

61538,28925,792

311,400

226,46962,53530,07532,4606,45516,098

Savings banks

34 Assets

Loans35 Mortgage36 Other

Securities37 U.S. government . .38 Mortgage-backed

securities39 State and local

government . . .40 Corporate and other41 Cash42 Other assets

43 Liabilities

44 Deposits45 Regular4

46 Ordinary savings47 Time48 Other49 Other liabilities50 General reserve

accounts

216,776

110,44830,876

13,111

19,481

2,32321,199

6,22513,113

216,776

185,972181,92133,018

103,3114,051

17,414

12,823

236,866

118,32335,167

14,209

25,836

2,18520,4596,894

13,793

236,866

192,194186,34537,717

100,8095,849

25,274

18,105

246,833

129,62435,591

13,498

28,252

2,05018,8214,806

14,191

246,833

194,549188,78341,928

102,6035,766

31,655

19,718

249,888

130,72136,793

13,720

28,913

2,03818,5734,823

14,307

249,888

195,895190,33541,767

105,1335,560

32,467

20,471

251,472

133,29836,134

13,122

29,655

2,02318,4314,484

14,325

251,472

196,824191,37641,773

107,0635,448

32,827

20,407

255,989

135,31736,471

13,817

30,202

2,03418,0625,529

14,557

255,989

199,336193,77742,045

109,4865,559

34,226

20,365

260,600

137,04437,189

15,694

31,144

2,04617,5835,063

14,837

260,600

202,030196,72442,493

112,2315,306

36,167

21,133

259,643

138,49433,871

13,510

32,772

2,00318,7725,864

14,357

259,643

201,497196,03741,959

112,4295,460

35,720

20,633

258,628

137,85835,095

12,776

32,241

1,99418,7804,841

15,043

258,628

199,545194,32241,047

112,7815,223

36,836

20,514

259,224

139,10835,752

12,269

32,423

2,05318,2715,002

14,346

259,224

200,391195,33641,234

113,7515,055

35,787

20,894

262,100

140,83536,476

12,225

32,272

2,03318,3364.881

15,042

262,100

203,407198,27341,867

115,5295,134

35,737

21,024

262,269

139,691

37,471

13,203

31,0722,013

18,5495,237

15,033

262,269

203,273197,80141,741

115,8875,472

35,827

21,109

Financial Markets All

1.37—Continued

Account 1985 1986

1987


1988

Jan. Feb.' Mar. Apr.

Credit unions5

51 Total amtiiiablllUMand capital

52 Federal53 State

54 Loans outstanding..55 Federal56 State57 Savings58 Federal59 State

118,010

77,86140,149

73,51347,93325,580

105,96370,92635,037

147,726

95,48352,243

86,13755,30430,833

134,32787,95446,373

Life insurance companies

60 Assets

Securities61 Government . . . . .62 United States'..63 State and local64 Foreign^65 Business66 Bonds67 Stocks68 Mortgages69 Real estate70 Policy loans71 Other assets

825,901

75,23051,7009,708

13,822423,712346,21677,496

171,79728,82254,36971,971

937,551

84,64059,03311,65913,948

492,807401,94390,864

193,84231,61554,05580,592

1,005,592

88,19962,46111,27714,461

555,423448,146107,277201,29732,69953,33885,420

1,017,018

89,92464,15011,19014,584

551,701442,604109,097202,24132,99253,33086,830

1,026,919

89,40863,35211,08714,969

558,787451,453107,334204,264

33,04853,42287,991

1,021,148

90,78264,88011,36314,539

549,426455,67893,748

206,50733,23553,41387,785

1,024,460

91,22765,18611,53914,502

548,767459,537

89,230208,83933,53853,33488,755

1,033,170

91,30264,55111,75814,993

553,486461,942

91,544212,375

34,01653,31388,678

1,042,350

91,68264,92211,74915,011

563,019469,20793,812

212,63734,17853,26587,569

1,052,645

n.a.65,53411,859n.a.

571,070476,44894,622

213,18234,50352,72088,673

1. Contra-assets are credit-balance accounts that must be subtracted from thecorresponding gross asset categories to yield net asset levels. Contre-assets tomortgage loans, contracts, and pass-through securities include loans in process,unearned discounts and deferred loan fees, valuation allowances for mortgages"held for sale," and specific reserves and other valuation allowances.

2. Contra-assets are credit-balance accounts that must be subtracted from thecorresponding gross asset categories to yield net asset levels. Contra-assets tononmortgage loans include loans in process, unearned discounts and deferred loanfees, and specific reserves and valuation allowances.

3. Holding of stock in Federal Home Loan Bank and Finance leases plusinterest are Included In "Other" (line 9).

4. Excludes checking, club, and school accounts.5. Data include all federallyJly 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. FSLlC-tnsured institutions: Estimates by the FHLBB for all institutionsinsured by the FSLIC and based on the FHLBB thrift Financial Report.

FSLlC-inmred federal savings banks: Estimates by the FHLBB for federalsavings banks insured by the FSLIC and based on the FHLBB thrift FinancialReport.

Savings banks: Estimates by the National Council of Savings Institutions for allsavings banks in the United States and for FDIC-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."


1.38 FEDERAL FISCAL AND FINANCING OPERATIONS

Millions of dollars

Type of account or operationFiscalyear1986

Fiscalyear19871

Calendar year

1988


U.S. budget1

1 Receipts, total2 On-budget3 Off-budget4 Outlays, total5 On-budget6 OS-budget7 Surplus, or deficit ( - ) , total8 On-budget9 Off-budget

Source of financing (total)10 Borrowing from the public11 Operating cash (decrease, or increase

12 Othe?Y^Y^'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.

MEMO13 Treasury operating balance (level, end of

period)14 Federal Reserve Banks15 Tax and loan accounts

769,091568,862200,228990,258806,760183,498

-221,167-237,898

16,731

236,187

-14,324-696

31,3847,514

23,870

854,143640,741213,402

1,004,586810,754193,832

-150,444-170,014

19,570

150,070

-5,0525,426

36,4369,120

27,316

81,79160,64521,14665,78666,573

-78716,005

-5,92821,933

5,281

-17,555-3,730

39,92410,27629,648

60,35540,61019,74584,26066,50717,753

-23,905-25,897

1,992

20,157

11,002-7,257

28,9222,47326,450

65,73044,95820,77294,87776,85818,020

-29,147-31,899

2,752

17,160

6,0095,979

22,9132,40320,510

109,32381,99327,33094,43379,50815,92513,8902,48511,405

-334

-23,2769,719

46,18916,18630,003

59,71139,76419,94782,17364,56617,607

-22,462-24,802

2,340

7,559

27,223-12,321

18,9662,871

16,095

99,34877,78621,56289,85672,67317,1849,4925,1134,379

11,391

-20,638-244

39,6049,762

29,842

1. FY 1987 total outlays and deficit do not correspond to the monthly databecause the Monthly Treasury Statement has not completed the monthly distri-bution of revisions reflected in the fiscal year total in The Budget of the U.S.Government, Fiscal year 1989.

2. In accordance with the Balanced Budget and Emergency Deficit Control Actof 1985, all former off-budget entries are now presented on-budget. The FederalFinancing Bank (FFB) activities are now shown as separate accounts under theagencies that use the FFB to finance their programs. The act has also moved twosocial security trust funds (Federal old-age survivors insurance and Federal

disability insurance trust funds) off-budget.3. Includes SDKs; reserve position on the U.S. quota in the IMF; loans to

international monetary fund; other cash and monetary assets; accrued interestpayable to the public; allocations of special drawing rights; deposit funds;miscellaneous liability (including checks outstanding) and asset accounts;seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjust-ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.

SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.Government and the Budget of the U.S. Government.

1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1

Millions of dollars

Federal Finance A29

Source or typeFiscalyear1986

Fiscalyear1987

Calendar year

1986

H2

1987

HI H2

1988

HI

1988

Apr. May June

RECEIPTS

1 All sources

2 Individual income taxes, net3 Withheld4 Presidential Election Campaign Fund5 Nonwithheld6 Refunds

Corporation income taxes7 Gross receipts8 Refunds9 Social insurance taxes and contribution:

net10 Employment taxes and

contributions2

11 Self-employment taxes andcontributions3

12 Unemployment insurance13 Other net receipts4

14 Excise taxes15 Customs deposits16 Estate and gift taxes . .17 Miscellaneous receipts3

OUTLAYS

18 All types

19 National defense20 International affairs21 General science, space, and technology22 Energy23 Natural resources and environment24 Agriculture

25 Commerce and housing credit26 Transportation27 Community and regional development .28 Education, training, employment, and

social services

29 Health30 Social security and medicare31 Income security

32 Veterans benefits and services33 Administration of justice34 General government35 General-purpose fiscal assistance36 Net interest'37 Undistributed offsetting receipts'

769,091

348,959314,803

36105,99471,873

80,44217,298

283,901

255,062

11,84024,0984,742

32,91913,3276,95819,884

990,231

273,37514,1528,9764,735

13,63931,449

4,89028,1177,233

30,585

35,935268,921119,796

2«,3566,6036,1046,431

136,008-33,007

854,143

392,557322,463

33142,95772,8%

102,85918,933

303,318

273,185

13,98725,4184,715

32,51015,0327,493

19,307

1,004,586

281,99911,6499,2164,11513,36327,356

6,18226,2285,051

29,724

39,968282,473123,250

26,7827,5485,9481,621

138,570-36,455

387,524

183,156164,071

427,7338,652

42,1088,230

134,006

122,246

1,3389,3282,429

15,9477,2823,6499,605

506,556

138,5448,9384,5942,4467,14115,660

3,76414,7453,651

16,209

18,795138,29959,979

14,1903,4131,8602,886

66,226-16,475

447,282

205,157156,760

30112,42164,052

52,39610,881

163,519

146,696

12,02014,5142,310

15,8457,1293,81810,299

502,898

142,8864,3744,3242,3356,17511,824

4,89312,1133,108

14,182

20,318142,86462,248

12,2643,6263,344337

70,110-19,102

421,712

192,575170,203

431,2238,853

52,8217,119

143,755

130,388

10,9772,390

17,6807,9933,610

10,399

532,145

146,9954,4875,4691,4687,590

14,640

3,85214,0962,075

15,592

20,750158,46961,201

14,9564,2913,5601,175

71,933-17,684

476,258

207,801169,300

28101,61463,141

58,0028,706

181,058

164,412

14,83914,3632,284

16,4407,8513,8639,950

512,385

143,0807,1505,361555

6,7767,872

5,95112,7002,765

15,451

22,643135,32265,555

13,2414,7614,337

44876,098

-17,766

109,323

53,33424,913

750,47722,062

14,0302,004

37,357

34,464

8,8332,477

416

2,7671,204

7491,886

95,433

26,7471,561

949382

1,0372,099

1,2032,053

555

2,253

3,79124,92012,916

3,748S25697

012,592

-2,895

59,711

17,95827,071

79,714

18,834

2,7481,136

33,396

24,948

9748,073

375

3,0551,282

7511,657

82,173

20,967907911507

1,1331,304

1632,427

296

2,410

3,74124,48710,214

1,441831

1,0170

12,719-3,303

99,348

46,23430,995

316,6671,431

19,213866

27,967

27,200

1,965352415

3,1361,430

6441,590

89,856

25,3171,6021,023

5161,458

20

1,8262,397

468

2,431

4,11928,234

8,203

2,120827

1,4860

11.061-3,251

1. Functional details do not add to total outlays for calendar year data becauserevisions to monthly totals have not been distributed among functions. Fiscal yeartotal for outlays does not correspond to calendar year data because revisions fromthe Budget have not been fully distributed across months.

2. Old-age, disability, and hospital insurance, and railroad retirement accounts.3. Old-age, disability, and hospital insurance.4. Federal employee retirement contributions and civil service retirement and

disability fund.

5. Deposits of earnings by Federal Reserve Banks and other miscellaneousreceipts.

6. Net interest function includes interest received by trust funds.7. Consists of rents and royalties on the outer continental shelf and U.S.

government contributions for employee retirement.SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of

Receipts and Outlays of the U.S. Government, and the U.S. Office of Manage-ment and Budget, Budget of the U.S. Government, Fiscal Year 1988.


1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION

Billions of dollars

Item

1986

Mar. 31 June 30 Sept. 30 Dec. 31

1987

Mar. 31 June 30 Sept. 30 Dec. 31

1988

Mar. 31

1 Federal debt outstanding

2 Public debt securities3 Held by public4 Held by agencies

5 Agency securities6 Held by public7 Held by agencies

8 Debt subject to statutory limit.

9 Public debt securities10 Other debt1

11 MEMO: Statutory debt limit. .

1,991.1

1,986.81,634.3

352.6

4.33.21.1

1,»73.3

1,972.01.3

2,078.7

2,063.6

2,059.31,684.9

374.4

4.33.21.1

2,060.0

2,058.71.3

2,078.7

2,129,5

2,125.31,742.4

382.9

4.23.21.1

2,111.0

2,109.71.3

2,111.0

2,218.9

2,214.81,811.7

403.1

4.03.01.1

2,200.5

2,199.31.3

2,300.0

2,250.7

2,246.71,839.3

407.5

4.02.91.1

2,232.4

2,231.11.3

2,300.0

2,313.1

2,309.31,871.1

438.1

3.82.91.0

2,295.0

2,293.71.3

2,320.0

2,354.3

2,350.31,893.1

457.2

4.03.01.0

2,336.0

2,334.71.3

2,800.0

2,435.2

2,431.71,954.1

477.6

3.52.7

.8

2,417.4

2,416.31.1

2,800.0

2,493.2

2,487.61,996.7

490.8

5.65.1

.6

2,487.0

2,486.7.3

2,800.0

1. Includes guaranteed debt of Treasury and other federal agencies, specifiedparticipation certificates, notes to international lending organizations, and Districtof Columbia stadium bonds.

SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of theUnited States.

1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership

Billions of dollars, end of period

Type and holder

I Tout gross public debt . . . .

By type2 Interest-bearing debt3 Marketable.4 Bills5 Notes .6 Bonds7 Nonmarketable'

11 Public

14 Non-interest-bearing debt ,

By holder*

16 Federal Reserve Banks

18 Commercial banks

22 State and local Treasurys ,Individuals

23 Savings bonds24 Other securities25 Foreign and international5

1984

1,663.0

1,660.61,247.4

374.4705.1167.9413.244.4

9.19.1.0

73.1286.2

2.3

289.6160.9

1,212.5183.425.976.450.1

173.0

74.569.3

192.9354.7

1985

1,945.9

1,943.41,437.7

399.9812.5211.1505.787.5

7.57.5.0

78.1332.2

2.5

348.9181.3

1,417.2192.225.1

115.459.0

224.0

79.875.0

212.5434.2

1986

2,214.8

2,212.01,619.0

426.7927.5249.8593.1110.5

4.74.7.0

90.6386.9

2.8

403.1211.3

1,602.0232.128.0

135.468.8

260.0

92.370.5

251.6467.1

1987

2.4M.7

2,428.91,724.7

389.51,037.9

282.5704.2139,3

4.04.0.0

99.2461.3

2.8

477.6222.6

1,745.2252.3

14.3n.a.

84.6n.a.

101.1

287.3n.a.

1987

Q2

2,309.3

2,306.71,659.0

391.0984.4268.6647.7125.4

5.15.1.0

95.2421.6

2.6

438.1212.3

1,657.7237. T20.6

140.079.7

n.a.

96.868.6

268.6n.a.

Q3

2,350.3

2,347.71,676.0

378.31,005.1

277.6671.8129.0

4.34.3.0

97.0440.7

2.5

457.2211.9

1,682.6250.5'

15.2143.081.8

n.a.

98.570.4

267.0n.a.

Q4

2,431.7

2,428.91,724.7

389.51,037.9

282.5704.2139.3

4.04.0

.099.2

461.3

2.8

477.6'222.6

1,745.2252.3'

14.3n.a.84.6

n.a.

101.1

287.3n.a.

1988

Ql

2,487.6

2,484.91,758.7

392.61,059.9

291.3726.2142.9

6.16.1.0

102.3474.4

2.6

490.8217.5

1,778.2260.7

14.9n.a.

n.a.

104.0

323.5n.a.

1. Includes (not shown separately): Securities issued to the Rural Electrifica-tion Administration; depository bonds, retirement plan bonds, and individualretirement bonds.

2. Nonmarketable dollar-denominated and foreign currency-denominated se-ries held by foreigners.

3. Held almost entirely by U.S. Treasury agencies and trust funds.4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds

are actual holdings; data for other groups are Treasury estimates.

5. Consists of investments of foreign and international accounts. Excludesnon-interest-bearing notes issued to the International Monetary Fund.

6. Includes savings and loan associations, nonprofit institutions, credit unions,mutual savings banks, corporate pension trust funds, dealers and brokers, certainU.S. Treasury deposit accounts, and federally-sponsored agencies.

SOURCES. Data by type of security, U.S. Treasury Department, MonthlyStatement of the Public Debt of the United States; data by holder. TreasuryBulletin.

Federal Finance A31

1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1

Par value; averages of daily figures, in millions of dollars

Item 1985 1986 1987

1988

Apr/ Mayr June

1988

May 25' June 1 June 8 June 15 June 22 June 29

Immediate delivery2

1 U.S. Treasury securities

By maturity2 Bills3 Other within 1 year4 1-5 years5 5-10 years6 Over 10 years

fly type of customer7 U.S. government securities

dealers8 U.S. government securities

brokers9 All others'

10 Federal agency securities11 Certificates of deposit12 Bankers acceptances13 Commercial paper

Futures contracts'14 Treasury bills15 Treasury coupons16 Federal agency securities

Forward transactions'17 U.S. Treasury securities18 Federal agency securities

75,331

32,9001,81118,36112,7039,356

3,336

36,22235,77311,6404,0163,24212,717

5,5616,085252

1,2833,857

95,445

34,2472,11524,66720,45613.961

3,670

49,55842,21816,7484,3553,27216,660

3,3117,175

16

1,8767,831

110,052

37,9243,272

27,91824,01416,923

2,936

61,53945,57618,0874,1122,965

17,135

3,2338,964

2,0299,290

94,386

29,2923,577

24,70522,64414,168

2,815

55,51136,05914,7053,4262,458

18,441

2,9958,773

0

1,5037,422

105,200

30,3443,848

30,82523,92516,259

2,620

63,54939,03115,1822,9102,125

17,765

3,1939,081

0

2,5168,598

110,315

27,8883,809

31,07427,90419,640

2,761

65,73341,82015,6493,1932,11924,139

2,20111,474

0

2,3189,370

106,586

31,3314,06534,26722,21614,707

2,415

64,74039,43015,5483,0121,88617,132

2,42310,274

0

2,0997,242

115,704

31,318• 4,37332,57530,39917,039

2,654

69,26643,78416,2463,3661,788

20,722

2,65810,351

0

3,3107,135

105,210

27,8822,941

26,52228,85819,007

1,910

63,99239,30718,7973,1012,342

20,480

2,04811,427

0

1,05810,482

100,245

23,0133,601

26,10028,06119,470

2,877

59,22638,14016,2392,9841,947

23,365

1,8449,952

0

1,90410,866

122,109

28,9853,940

39,53330,01319,637

2,917

75,41843,77311,9133,2822,006

27,976

3,11112,423

0

4,1869,957

110,494

29,5294,145

33,61823,49019,712

3,348

63,57343,57214,9063,4652,169

24,765

1,60511,429

0

2,1537,148

1. Transactions are market purchases and sales of securities as reported to theFederal Reserve Bank of New York by the U.S. government securities dealers onits published list of primary dealers.

Averages for transactions are based on the number of trading days in the period.The figures exclude allotments of, and exchanges for, new U.S. Treasurysecurities, 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.

4. Futures contracts are standardized agreements arranged on an organizedexchange in which parties commit to purchase or sell securities for delivery at afuture date.

5. Forward transactions are agreements arranged in the over-the-countermarket in which securities are purchased (sold) for delivery after 5 business daysfrom the date of the transaction for Treasury securities (Treasury bills, notes, andbonds) or after 30 days for mortgage-backed agency issues.


1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1

Averages of daily figures, in millions of dollars

Item 1985 1986 19871988

Apr. May' June

1988

June 1 June 8 June 15 June 22 June 29

Positions

Net immediate2

1 U.S. Treasury securities..

2 Bills3 Other within 1 year . . .4 1-5 years5 5-10 years6 Over 10 years

7 Federal agency securities8 Certificates of deposit . . .9 Bankers acceptances

10 Commercial paperFutures positions

11 Treasury bills12 Treasury coupons13 Federal agency securities

Forward positions14 U.S. Treasury securities.15 Federal agency securities

Reverse repurchase agreements4

16 Overnight and continuing17 Term ,


18 Overnight and continuing . . . .19 Term

7,391

10,0751,0505,154

-6,202-2,686

22,8609,1924,5865,570

-7,3224,465-722

-911-9,420

12,912

12,7613,7069,146

-9,505-3,197

32,98410,4855,526

-18,0593,473-153

-2,144-11,840

-6,216

4,3171,557

649-6,564-6,174

31,9108,1883,6617,496

-3,3735,988

-95

-1,211-18,817

-15,105'

5,536'-970

-3,038'-8,587'-8,046'

26,622'5,6783,0595,591

-3,6815,101

0

LOW-16,528'

-26,408

-2,613-6,785-8,649-8,446

26,7856,0752,3954,519

-2,0274,460

0

2,191-14,977

-25,104

1,797-1,000-7,514

-10,276-8,112

29,3838,0672,6175,561

-2,6954,122

0

1,092-17,813

-32,054

-2,618-2,793-8,217-9,159-9,267

27,4077,0342,2095,212

-3,0675,340

0

3,051-14,820

-27,543

4,390-1,773

-10,968-9,832-9,360

27,1107,4572,5644,828

-3,0034,561

0

1,161-17,337

-25,150

2,219-730

-7,990-10,213-8,435

30,6927,8132,6375,256

-3,9874,118

0

870-18,527

-25,949

685-183

-9,373-9,544-7,535

30,3058,3592,3516,095

-2,2063,651

0

356-17,311

Financing3

68,03580,509

101,41070,076

98,954108,693

141,735102,640

124,791148,033

170,840120,980

128,158173,474

169,194138,097

133,373173,858

169,031139,537

139,006168,069

176,017131,104

148,771162,360

179,127126,721

140,419165,311

171,040128,004

145,354168,917

185,031128,478

128,772176,891

167,758140,894

-19,915

1,198-654

-2,447-11,088-6,924

29,9898,5032,9175,612

-2,0243,748

0

1,743-18,567

141,251163,380

180,348130,217

1. Data for dealer positions and sources of financing are obtained from reportssubmitted to the Federal Reserve Bank of New York by the U.S. Treasurysecurities dealers on its published list of primary dealers.

Data for positions are averages of daily figures, in terms of par value, based onthe number of trading days in the period. Positions are net amounts and are shownon a commitment basis. Data for financing are in terms of actual amountsborrowed or lent and are based on Wednesday figures.

2. Immediate positions are net amounts (in terms of par values) of securitiesowned by nonbank dealer firms and dealer departments of commercial banks ona commitment, that is, trade-date basis, including any such securities that havebeen sold under agreements to repurchase (RPs). The maturities of somerepurchase agreements are sufficiently long, however, to suggest that the securi-ties involved are not available for trading purposes. Immediate positions include

reverses to maturity, which are securities that were sold after having beenobtained under reverse repurchase agreements that mature on the same day as thesecurities. Data for immediate positions do not include forward positions.

3. Figures cover financing involving U.S. Treasury and federal agency securi-ties, negotiable CDs, bankers acceptances, and commercial paper.

4. Includes all reverse repurchase agreements, including those that have beenarranged to make delivery on short sales and those for which the securitiesobtained have been used as collateral on borrowings, that is, matched agreements.

5. Includes both repurchase agreements undertaken to finance positions and"matched book" repurchase agreements.

NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partiallyestimated.

Federal Finance A33

1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding


Agency 1984 1985 19861987

Dec.

1988

Jan. Feb. Mar. Apr. May

1 Federal and federally sponsored agencies

2 Federal agencies ,3 Defense Department',4 Export-Import Bank2-3

5 Federal Housing Administration4

6 Government National Mortgage Association participation

7 Postal Service'8 Tennessee Valley Authority9 United States Railway Association'

10 Federally sponsored agencies7

11 Federal Home Loan Banks12 Federal Home Loan Mortgage Corporation13 Federal National Mortgage Association14 Farm Credit Banks13 Student Loan Marketing Association"16 Financing Corporation*^

MEMO17 Federal Financing Bank debt"

Lending to federal and federally sponsored agencies18 Export-Import Bank3

19 Postal Service6

20 Student Loan Marketing Association21 Tennessee Valley Authority22 United States Railway Association'

Other Lending"23 Farmers Home Administration24 Rural Electrification Administration25 Other

271,220

35,145142

15,882133

2,1651,337

.5.435

237,01265,08510,27083,72072,192

5,745n.a.

145,217

15,8521,0875,00013,710

51

58,97120,69329,853

293,905

36,39071

15,678115

2,1651,940

16,34774

257,51574,44711,92693,89668,8518,395

153,373

15,6701,6905,00014,622

74

64,23420,65431,429

307,361

36,958

2,1653,10417,222

85

270,55388,75213,58993,56362,47812,171

157,510

14,2052,8544,97015,797

85

65,37421,68032,545

341,386

37,98113

11,978183

1,6156,10318,089

0

303,405115,72517,64597,05735,27516,5031,200

152,417

11,9725,8534,94016.709

0

59,67421,19132,078

338,483

37,63713

11,978

1,6156,103

17,8300

300,846116,37415,58197,19554,07216,4241,200

152,099

11,9725,8534,94016,450

0

59,67421,18732,023

346,901

37,28612

11,978101

1,1656,10317,927

0

309,615117,56919,40598,59355,27516,9231,850

150,178

11,9725,8534,940

16,5470

59,67419,19331,999

351.35C

36,84412

11,494100

1,1656,10317,970

0

314,512118,25020,14399,85356,14518,2711,850

149,721

11,4885,8534,94016,590

59,67419,18431,992

348,273

36,67211

11,494103

8306,10318,131

0

311,601118,15317,199100,91154,31118,8772,150

150,044

11,4885,8334,94016,751

0

59,67419,20332,135

n.a,

36,43011

11,494105

8305,84218,148

0

n.a.117,864n.a.

102,51554,57818,4342,900

149,986

11,4885,5924,94016,768

0

59,67419,21832,306

1. Consists of mortgages assumed by the Defense Department between 1957and 1963 under family housing and homeowners assistance programs.

2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.4. Consists of debentures issued in payment of Federal Housing Administration

insurance claims. Once issued, these securities 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 Fanners Home Admin-istration; Department of Health, Education, 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 FederalFinancing Bank (FFB).

9. The Financing Corporation, established in August 1987 to recapitalize theFederal Savings and Loan Insurance Corporation, undertook its first borrowing inOctober 1987.

10. The FFB, which began operations in 1974, is authorized to purchase or sellobligations issued, sold, or guaranteed by other federal agencies. Since FFBincurs debt solely for the purpose of lending to other agencies, its debt is notincluded in the main portion of the table in order to avoid double counting.

11. Includes FFB purchases of agency assets and guaranteed loans; the lattercontain 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 Electrification Administra-tion entry contains both agency assets and guaranteed loans.


1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments

Millions of dollars

Type of issue or issuer,or use 1985 1986 1987

1987

Nov. Dec.

1988

Jan. Feb. Mar. Apr. May' June

1 All issues, new and refunding1

Type of issue2 General obligation3 Revenue

Type of issuer4 State ,5 Special district and statutory authority'6 Municipalities, counties, and townships

7 Issues for new capital, total

Use of proceeds8 Education9 Transportation

10 Utilities and conservation11 Social welfare12 Industrial aid13 Other purposes

214,189

52,622161,567

13,004134,36366,822

156,050

16,65812,07026,85263,18112,89224,398

147,011

46,346100,664

14,47489,99742,541

83,490

16,94811,66635,38317,3325,594

47,433

102,407

30,58971,818

10,10265,46026,845

56,789

9,5253,6777,912

11,1076,551

18,020

8,320

2,4725,848

4315,0762,813

6,626

1,002351

1,0941,664

3302,185

8,385

1,9956,390

5505,4472,388

5,»13

931455377

1,2781,2971,575

5,412

1,2594,153

4233,2201,769

2,M2

841189326740153613

8,585

2,8805,705

1,1975,1542,234

5,773

754826655650

2,473415

9,821

2,7767,045

739'6,31c2,772'

6,044

933559

1,0161,218

1052,213

5,847

1,7074,140

4414,0781,328

3,948

911215429

1,099298996

7,846

3,0854,761

9134,6252,308

5,190

1,316452580694248

1,900

12,665

4,0448,621

1,2808,0253,360

8,659

1,289748627

2,026428

3,541

1. Par amounts of long-term issues based on date of sale.2. Includes school districts beginning 1986.

SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986.Public Securities Association for earlier data.

1.46 NEW SECURITY ISSUES U.S. Corporations

Millions of dollars

Type of issue or issuer,or use 1985 1986 1987

1987

Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May

1 AH issues1.

2 Bonds3 . . .

type of offering3 Public,domestic4 Private placement, domestic3 .5. Sold abroad

Industry group6 Manufacturing7 Commercial and miscellaneous8 Transportation9 Public utility

10 Communication11 Real estate and financial

12 Stocks3 .

Type13 Preferred14 Common15 Private placement3.

Industry group16 Manufacturing17 Commercial and miscellaneous18 Transportation19 Public utility20 Communication21 Real estate and financial

239,015

203,500

119,55946,20037,781

63,97317,0666,020

13,64910,83291,958

35,515

6,50529,010

5,7009,1491,5441,966

97816,178

423,726

355,293

231,93680,76042,596

91,54840,124

9,97131,42616,659

165,564

68,433

11,51450,3166,603

15,02710,6172,4274,0201,825

34,517

392,156

325,648

209,27992,07024,299

61,66649,32711,97423,0047,340

172,343

66,508

10,12343,228n.a.

13,88012,8882,4394,3221,458

31,521

20,710

17,631

16,135n.a.1,4%

2,7841,165

2631,0251,384

11,011

3,079

2362,843n.a.

7036564075

1071,498

14,322

13,624

12,891n.a.

733

1.280483

0895290

10,676

698

162533

n.a.

23786

14925

200

11,872

11,098

10,763n.a.

335

9282,577

2261,570

5105,287

774

61713

7614

011

672

22,175

19,485

18,246n.a.1,239

3,0532,084

01,142

20613,000

2,690

1,3881,302n.a.

268360

10060

1,901

22,394

18,504

16,713n.a.1,791

3,1511,396

2001,718

10111,937

3,890

3763,534n.a.

29644

474142

02,933

25,902

20,815

19,827n.a.

918

3,4821,0071,0172,259

11512,935

5,087'

6254,490n.a.

25699329363

4,544

21,084

18,372

16,177n.a.2,195

4,495771890

1,170411

10,636

2,712

2412,471n.a.

318276150238109

1,621

22,913

18,999

17,200n.a,1,799

4,1211,367

1841,909

6911,348

3,914

2853,629

1,080143

55678

2,542

1. Figures which represent gross proceeds of issues maturing in more than oneyear, are principal amount or number of units multiplied By offering price.Excludes secondary offerings, employee stock plans, investment companies otherthan closed-end, intracorporate transactions, equities sold abroad, and Yankeebonds. Stock data include ownership securities issued by limited partnerships.

2. Monthly data include only public offerings.3. Data are not available on a monthly basis. Before 1987, annual totals include

underwritten issues only.SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange

Commission and the Board of Governors of the Federal Reserve System.

Securities Market and Corporate Finance A35

1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position

Millions of dollars

Item 1986

19871987

Oct. Nov. Dec.

1988

Jan. Feb. Mar. Apr/ May

INVESTMENT COMPANIES'

Sales of own shant1

2 Redemptions of own shares3.3 Net sales

3 Cash position9.6 Other

411,751

239,394172,357

424,156

30,716393,440

381,2*0

314,25267,008

453,842

38,006415,836

25,990

34,597-8,607

454,422

40,929415,493

21,927

20,4001,507

446,479

41,432405,047

26,494

28,099-1,605

453,842

38,006415,836

30,343

22,3248,019

468,998

40,157428,841

23,265

20,9142,351

481,232

41,232439,995

24,589

23,968620

473,206

43,561426,645

23,162

25,000-1,828

473,321

45,307428,014

19,579

21,412-1,833

468,738

45,323423,415

1. Excluding money market funds.2. Includes reinvestment of investment income dividends. Excludes reinvest-

ment of capital gains distributions and share issue of conversions from one fundto another 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.

NOTE. 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 offering of securities.

1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION

Billions of dollars; quarterly data are at seasonally adjusted annual rates.

Account

1 Corporate profits with inventory valuation and

2 Profits before tax3 Profits tax liability4 Profits after tax5 Dividends6 Undistributed profits

1985'

282.3224.296.4

127.883.244.6

-1 .759.7

1986'

298.8236.3106.6129.888.241.6

8.354.2

1987'

310.4276.7133.8142.995.547.4

-18.051.7

1986'

Q2

297.1230.3104.9125.488.037.4

11.855.0

Q3

301.2240.5107.9132.688.943.7

8.752.0

Q4

293.9252.1114.3137.989.848.1

-8.149.8

1987'

Ql

298.3261.8126.3135.591.743.8

-14.450.8

Q2

305.2273.7132.6141.194.047.0

-20.051.5

Q3

322.0289.4140.0149.597.052.4

-19.552.1

Q4

316.1281.9136.2145.799.346.4

-18 .252.4

1988

Ql'

316.2286.2136.9149.4101.348.1

-19 .449.4

SOURCE. Survey of Current Business (Department of Commerce).


1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •

Billions of dollars; quarterly data are at seasonally adjusted annual rates.

Industry

Manufacturing

3 Nondurable goods industries

Nonmanufacturing

Transportation5 Railroad... . .6 Air7 other

Public utilities8 Electric9 Gas and other . v . . . . . . . . .

1986

379.47

69.1473.56

11.22

6.666.265.89

33.9112.47

160.38

1987

388.60

70.9174.55

11.34

5.916.556.39

31.5813.18

168.19

19881

430.23

163.0185.39

12.39

6.657.626.97

32.9014.28

186.40

1986

Q4

384.09

69.8774.20

10.31

6.416.846.25

33.7812.34

166.08

1987

Ql

374.23

70.4770.18

10.31

5.557.465.97

30.8512.75

160.70

Q2

377.65

68 7672.03

11.02

5.775.726.19

31.1312.35

164.69

Q3

393.13

71.7875.78

11.64

6.215.917.05

31.3113.58

169.87

04

409.37

72.6480.20

12.39

6.107.126.35

33.0114.06

177.50

1988

Ql

409.73

75.3382.45

12.50

6.766.906.94

29.9414.37

174.54

Q2'

429.01

79.0083.82

12.87

6.787.446.58

32.5513.81

186.15

Q3'

438.22

79.3086.43

12.51

6.818.437.37

34.3114.63

188.44

•Trade and services are no longer being reported separately. They are includedin Commercial and other, line 10.

1. Anticipated by business.

2. "Other" consists of construction; wholesale and retail trade; finance andinsurance; personal and business services; and communication.


Securities Markets and Corporate Finance A37

1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1


Account

ASSETS

Accounts receivable, gross

3 Real estate .4 Total

Leu:

8 All other

9 Total assets

LIABILITIES

10 Bank loans

Debt12 Other short-term

M AH other liabilities

16 Total llabUItlu and canital

1983

83.3113.420.5

217.3

30.33.7

183.234.4

217.6

18.360.5

11.167.731.228.9

217.6

1984

89.9137.823.8

251.5

33.84.2

213.535.7

249.2

20.073.1

12.977.234.531.5

249.2

1985

111.9157.528.0

297.4

39.24.9

253.345.3

298.6

18.099.2

12.794.441.532.8

298.6

1986

Q2

123.4166.829.8

320.0

40.75.1

274.249.5

323.7

16.3108.4

15.8106.940.935.4

323.7

Q3

135.3159.731.0

326.0

42.45.4

278.260.0

338.2

16.8112.8

16.4111.745.035.6

338.2

Q4

134.7173.432.6

340.6

41.55.8

293.358.6

351.9

18.6117.8

17.5117.544.136.4

351.9

1987

Ql

131.1181.434.7

347.2

40.45.9

300.959.0

359.9

17.2119.1

21.8118.746.536.6

359.9

Q2

134.7188 136.5

359 3

41.26.2

311.957.7

369.6

17.3120.4

24.8121.849.136.3

369.6

Q3

141.6188 338.0

367 9

42.56.5

318.964.5

383.4

15.9124.2

26.9128.248.639.5

383.4

Q4

141 1207 639 5

388 2

45.36.8

336 158 2

394.3

16.4128.4

28 0137.152.831.5

394.3

1. NOTE. Components may not add to totals because of rounding.

1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1

Millions of dollars, seasonally adjusted

Type 1985 19861987

Nov. Dec

1988

Jan. Feb Mar. Apr. May

1 Total

Retail financing of installment sales2 Automotive (commercial vehicles)3 Business, industrial, and farm equipment

Wholesale financing4 Automotive5 Equipment6 All other

Leasing7 Automotive8 Equipment9 Loans on commercial accounts receivable and factored

commercial accounts receivable10 All other business credit

11 Total

Retail financing of installment sales12 Automotive (commercial vehicles)13 Business, industrial, and farm equipment

Wholesale financing14 Automotive15 Equipment16 All other

Leasing17 Automotive18 Equipment19 Loans on commercial accounts receivable and factored

commercial accounts receivable20 All other business credit

156,297

20,66022,483

23,9884,5686,809

16,27534,768

15,76510,981

19,607

5,067-363

5,423-8671,069

3,8962,685

2,161536

171,966

25,95222,950

23,4195,4237,079

19,78337,833

15,95913,568

202,829

34,45424,764

30,9015,7948,151

22,01341,964

18,50116,287

205,869

35,67424,987

31,0595,6938,408

21,94343,002

18,02417,079

206,755

36,41925,474

30,1155,3088,454

22,94343,245

18,50616,291

213,337

36,31826,976

28,6545,3238,331

23,10048,175

17,86217,062

216,007

36,91427,081

27,3295,2518,347

23,49350,411

17,89519,287

218,914

37,61927,263

27,3615,4298,311

23,45851,092

18,78919,592

Net change (during period)

15,669

5,292467

-569855270

3,5083,065

1942,587

1,700

589

5056577

13053

139141

3,040

1,220223

158-101

257

-701,038

-477792

886

745487

-944-385

46

1,000243

482-788

549

-101-232

-1,46114

-123

157632

-643770

2,670

596105

-1,325-72

16

3932,236

-643689

2,907

705182

32178

-36

-34681

894305

220,304

37,21927,081

28,2605,2378,414

23,69052,126

18,70019,578

1,390

-400-181

899-192

103

2311,034

-14

1. These data also appear in the Board's G.20 (422) release. For address, seeinside front cover.


1.53 MORTGAGE MARKETS

Millions of dollars; exceptions noted.

Item 1985 1986 1987

1987

Dec.

1988

Jan. Feb. Mar. Apr. May' June

Terms and yields in primary and secondary markets

PRIMARY MARKETS

Conventional mortgages on new hornetTerms'

1 Purchase price (thousands of dollars)2 Amount of loan (thousands of dollars)3 Loan/price ratio (percent)4 Maturity (years)5 Fees and charges (percent of loan amount)2

6 Contract rate (percent per year)

Yield (percent per year)7 FHLBB series'8 HUD series'

SECONDARY MARKETS

Yield (percent per year)9 FHA mortgages (HUD series)3.

10 GNMA securities8

104.177.477.126.92.53

11.12

11.3812.28

12.2411.61

118.186.275.226.62.489.82

10.2510.07

9.919.30

137.0100.575.227.82.268.94

9.3110.13

10.129.42

147.3107.774.928.22.228.78

9.1510.52

10.6310.18

150.1108.474.028.22.178.75

9.1010.09

10.179.83

139.4104.376.428.12.238.76

9.129.80

9.869.53

147.2106.375.027.32.288.77

9.159.99

10.289.53

151.4112.176.227.72.208.76

9.1310.19

10.469.67

145.3108.076.428.12.158.59

8.9510.48

10.849.93

141.0103.674.627.72.128.72

9.07n.a.

n.a.9.88

Activity in secondary markets

FEDERAL NATIONAL MORTOAOE ASSOCIATION

Mortgage holdings (end of period)11 Total12 FHA/VA-insured13 Conventional

Mortgage transactions (during period)14 Purchases

Mortgage commitments'15 Contracted (during period)16 Outstanding (end or period)

FEDERAL HOME LOAN MORTOAOE CORPORATION

Mortgage holdings (end of period)*17 Total18 FHA/VA19 Conventional

Mortgage transactions (during period)20 Purchases21 Sales

Mortgage commitments9

22 Contracted (during period)

94,57434,24460,331

21,510

20,1553,402

12,399841

11,559

44,01238,905

48,989

98,04829,68368,365

30,826

32,9873,386

13,517746

12,771

103,474100,236

110,855

95,03021,66073,370

20,531

25,4154,886

12,802686

12,116

76,84575,082

71,467

96,64920,28876,361

3,747

3,1154,886

12,871657

12,215

3,2673,201

2,693

97,15920,23776,923

1,267

2,2545,542

13,090632

12,458

2,1681,832

3,868

98,35820,18178,177

2,629

2,5164,966

13,926646

13,280

3,2932,414

4,910

99,78720,09479,693

2,776

3,8236,149

14,386641

13,745

2,9322,312'

4,262

100,79619,93280,864

2,409

2,5556,033

14,822635

14,187

2,7722,271'

6,437

101,74719,80581,941

2,138

2,1425,777

n.a.n.a.n.a.

n.a.n.a.

102.36819,76582,603

2,372

2,1795,365

n.a.n.a.n.a.

n.a.n.a.

1. Weighted averages based on sample surveys of mortgages originated bymajor institutional lender groups; compiled by the Federal Home Loan BankBoard in cooperation with the Federal Deposit Insurance Corporation.

2. Includes all fees, commissions, discounts, and "points" paid (by theborrower or the seller) to obtain a loan.

3. Average effective interest rates on loans closed, assuming prepayment at theend of 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 30-year, minimum-downpayment, Federal HousingAdministration-insured first mortgages for immediate delivery in the privatesecondary market. Based on transactions on first day of subsequent month. Largemonthly movements in average yields may reflect market adjustments to changesin maximum permissable contract rates.

6. Average net yields to investors on Government National Mortgage Associ-ation guaranteed, mortgage-backed, fully modified pass-through securities, as-suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carryingthe prevailing ceiling rate. Monthly figures are averages of Friday figures from theWaft Street Journal.

7. Includes some multifamily and nonprofit hospital loan commitments inaddition to 1- to 4-family loan commitments accepted in FNMA's free marketauction system, and through the FNMA-ONMA tandem plans.

8. Includes participation as well as whole loans.9. Includes conventional and government-underwritten loans. FHLMC's mort-

gage commitments and mortgage transactions include activity under mortgage/securities swap programs, while the corresponding data for FNMA exclude swapactivity.

Real Estate A39

1.54 MORTGAGE DEBT OUTSTANDING1


Type of holder, and type of property 1985 1986 1987

1987

Ql Q2 Q3 Q4 Ql

1 All holder.

2 1- to 4-family3 Multifamily4 Commercial •5 Farm

6 Selected financial institutions7 Commercial banks2

8 1- to 4-family9 Multifamily

10 Commercial11 Farm

12 Savings institutions3

13 1- to 4-family14 Multifamily15 Commercial16 Farm17 Life insurance companies18 1- to 4-family19 Multifamily20 Commercial21 Farm22 Finance companies4

23 Federal and related agencies24 Government National Mortgage Association..25 1- to 4-family26 Multifamily27 Farmers Home Administration'28 1- to 4-family29 Multifamily30 Commercial31 Farm

32 Federal Housing and Veterans Administration33 1- to 4-family34 Multifamily35 Federal National Mortgage Association36 1- to 4-family37 Multifamily38 Federal Land Banks39 1- to 4-family40 Farm41 Federal Home Loan Mortgage Corporation . .42 1- to 4-family43 Multifamily

44 Mortgage pools or trusts6

45 Government National Mortgage Association.,46 l- to 4-family47 Multifamily48 Federal Home Loan Mortgage Corporation . .49 1- to 4-family50 Multifamily51 Federal National Mortgage Association52 1- to 4-family53 Multifamily54 Farmers Home Administration^55 1- to 4-family56 Multifamily57 Commercial58 Farm

59 Individuals and others7

60 1- to 4-family61 Multifamily62 Commercial63 Farm

2,2*9,173

1,467,409214,045482,029105,690

1,390,394429,1%213,434

23,373181,03211,357

760,499554,30189,739

115,771688

171,79712,38119,894127,67011,85228,902

166,9281,473539934733183113159278

4,9202,2542,66698,28291,9666,31647,4982,79844,70014,02211,8812,141

415,042212,145207,1984,947

100,38799,515

87254,98754,036

95147,52322,1866,6758,19010,472

296,809165,83555,42449,20726,343

2,568,562

1,668,209247,024556,56996,760

1,507,289502,534235,81431,173222,79912,748

777,312558,41297,059121,236

605193,84212,82720,952149,11110,95233,601

203,80088947842

48,42121,6257,6088,44610,742

5,0472,3862,661

97,89590,7187,17739,9842,35337,63111,56410,0101,554

531,591262,697256,9205,777

171,372166,6674,705

97,17495,7911,383348142

13274

325,882180,89666,13354,84524,008

2,908,072

1,888,158273,740656,20389,971

1,699,922590,829275,16633,493

267,67914,491

856,369598,441106,346150,825

13,22622,524166,7229,90340,349

192,72144425

41943,05118,1698,0446,60310,235

5,5742,5573,017

96,64989,6666,98334,1312,00832,12312,87211,4301,442

670,394317,555309,8067,749

212,634205,9776,657

139,960137,9881,972245121

2,665,33*

1,712,737257,859601,20793,536

1,559,681519,606242,04229,759234,61913,186

809,245555,693104,035148,712

805195,74312,90320,934151,42010,48635,087

199,50968746

64148,20321,3907,7108,46310,640

5,1772,4472,730

95,14088,1067,03437,3622,19835,16412,94011,7741,166

575,435281,116274,7106,406

186,295180,6025,693

107,673106,0681,605351154

2,756,383

1,780,438263,564620,25992,122

1,606,881544,640252,58930,547247,67613,828

824,961572,075102,933149,183

200,38212,74521,663155,61110,36336,898

196.51466745

62248,08521,1577,8088,55310,567

5,2682,5312,737

94,06487,0137,05135,8332,10833,72512,59711,1721,425

615,142293,246286,091

7,155200,284194,2386,046

121,270119,6171,653342149

2,832,137

1,835,799268,019637,41290,907

1,647,928566,600262,35231,614

258,49614,138

838,737583,432104,609149,938

2,908,072

1,888,158273,740656,20389,971

1,699,922590,829275,16633,493267,67914,491

856,369598,441106,346150,825

204,26312,74221,968159,46410,08938,328

191,52045825

43342,97818,1117,9036,59210,372

5,3302,4522,878

94,88487,9016,98334,9302,055

32,87512,94011,5701,370

648,084308,339300,8157,524

208,872202,3086,564

130,540128,7701,770333144

212,37513,22622,524166,7229,903

40,349

192,72144425

41943,05118,1698,0446,60310,235

5,5742,5573,017

96,64989,6666,98334,1312,008

32,12312,87211,4301,442

670,394317,555309,8067,749

212,634205,9776,657

139,960137,9881.972245121

6361

345,035183,22975,09464,31122,401

12770

330,714179,51770,14657,86623,185

12667

337,846182,01073,92459,11022,802

12465

344,605184,79474,40362,79822,610

6361

345,035183,22975,09464,31122,401

2,949,929'

1,919,240'275,244'666,199'89,246'

1,723,399605,491282,58333,907274,34814,653

861,824604,343105,945150,781

214,67513,22622,524169,1229,803

41,409

196,638'43024

40643,076'18,185'8,115'6,64c10,136'

5,6792,6123,067

99,78792.8286,95933,5661,975

31,59114,10012,5001,600

682.969'322,555314,684

7,871215,000208,4006,600

145,242142,3302.912

172'65'

58'49'

346,923184,07675,33865,25022,259

1. Based on data from various institutional and governmental sources, withsome quarters estimated in part by the Federal Reserve. Multifamily debt refersto loans on structures of five or more units.

2. Includes loans held by nondeposit trust companies but not bank trustdepartments.

3. Includes savings banks and savings and loan associations. Beginning 1987:1,data reported by FSLIC-insured institutions include loans in process and othercontra assets (credit balance accounts that must be subtracted from the corre-sponding gross asset categories to yield net asset levels).

4. Assumed to be entirely 1- to 4-family loans.5. FmHA-guaranteed securities sold to the Federal Financing Bank were

reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4,because of accounting changes by the Farmers Home Administration.

6. Outstanding principal balances of mortgage pools backing securities insuredor guaranteed by the agency indicated.

7. Other holders include mortgage companies, real estate investment trusts,state and local credit agencies, state and local retirement funds, noninsuredpension funds, credit unions, and other U.S. agencies.


1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted

Millions of dollars

Holder, and type of credit 1986 1987

1987

Sept. Oct. Nov. Dec

1988

Jan. Feb. Mar. Apr/ May

Amounts outstanding (end of period)

1 Total

By major holder2 Commercial banks . . . .3 Finance companies'. . .4 Credit unions5 Retailers1

6 Savings institutions . . .7 Gasoline companies. . .

By major type of credit8 Automobile9 Commercial banks . .

10 Credit unions11 Finance companies..12 Savings institutions .

13 Revolving14 Commercial banks. .15 Retailers16 Gasoline companies.17 Savings institutions .18 Credit unions

19 Mobile home20 Commercial banks . .21 Finance companies..22 Savings institutions .

23 Other24 Commercial banks . .25 Finance companies..26 Credit unions27 Retailers28 Savings institutions .

29 Total

By major holder30 Commercial banks . . . .31 Finance companies2 . . .32 Credit unions33 Retailers'34 Savings institutions . . .35 Gasoline companies. . .

By major type of credit36 Automobile37 Commercial banks . .38 Credit unions39 Finance companies..40 Savings institutions .

41 Revolving42 Commercial banks . .43 Retailers44 Gasoline companies.45 Savings institutions .46 Credit unions

47 Mobile home48 Commercial banks . .49 Finance companies..50 Savings institutions .

51 Other52 Commercial banks . .53 Finance companies..54 Credit unions55 Retailers56 Savings institutions .

571,833

262,139133,69876,19139,66056,8813,264

246,109100,90738,41392,35014,439

136,38186,75734,3203,2648,3663,674

26,8838,9268,8229,135

162,46065,54932,52634,1045,34024,941

613,022

281,564140,07281,06542,78263,9493,590

267,180108,43843,47498,02617,242

159,30798,80836,9593,59013,2796,671

25,9579,1017,7719,085

160,57865,21734,27530,9205,82324,343

602,977

276,805138,39580,35141,63262,0983,6%

261,902106,68542.11896,80916,290

152,55396,08335,9413,69611,3335,500

26,8459,1578,2359,453

161,67764,88033,35132,7335,69125,022

60«,926

278,855139,23680,67242,01262,4573,694

263.823107.41442,61297,26116,536

155,19697,41636,2703,69411,9225,894

9,1748,2289,296

161,20964,85133,74732,1665,74224,703

608,728

279,550138,92880,92342,29163,4123,624

264,474107,72743,07196,73316.943

156,42597,37836,5013,62412,6366,286

26,6049,1698,2119,224

161,22565,27633,98431,5665,79024,609

613,022

281,564140,07281,06542,78263,9493,590

267,180108,43843,47498,02617,242

159,30798,80836,9593,59013,2796,671

25,9579,1017,7719,085

160,57865,21734,27530,9205,82324,343

619,258

284,753141,69581,66242,92664,6333,590

269,883109,29843,95999,14717,479

162,065100,87937,0873,59013,6016,908

25,9269,0647,7539,109

161,38465,51234,79530,7955,83924,444

624,294

287,344142,94681,89743,08065,3963,631

273,133111,02144,251100,12317,738

163,462101,53737,2313,631

13,9457,117

25,8579,0357,6799,143

161,84265,75035,14430,5295,849

24,570

629,485

290,831144,05382,59543,27165,0783,657

276,762113,59344,795100,66917,705

165,643103,15237,4083,65714,0597,368

25,7328,9937,6409,099

161,34865,09435,74430,4325,86324,216

633,336

293,166144,51683,20443,29565,387

3,769

278,567114,86845,293

100,56417,841

167,356104,25037,414

3,76914,3097,614

25,7649,0477,5759,142

161,64965,00136,37630,2975,880

24,095

Net change (during period)

635,757

295,316144,45483,48843,16265,495

3,842

279,164115,91645,61799,70817,924

169,044105,59537,2593,842

14,5157,833

25,7048,9697,5789,157

161,84564,83637,16830,039

5,90323,899

54,078

20,49522,6704,268466

7,223-1,044

36,4738,1782,38822,8233,084

14,36811,150

47-1,0442,0782,137

49-627-4721,148

3,1881,794319

-257419913

41,189

19,4256,3744,8743,1227,068326

21,0717,5315,0615,6762,803

22,92612,0512,639326

4,9132,997

-926175

-1,051-50

-1,882-3321,749

-3,184483

-598

4,787

2,92673253525130043

2,3441,024603522195

2,7381,94121043139405

-341

-4611

-261-40256

-47341

-45

3,949

2,050841321380359-2

1,921729494452246

2,6431,333329-2589394

-14717-7

-157

-468-293%

-56751

-319

1,802

695-308251279955-70

651313459

-528407

1,229-38231-70714392

-94-5-17-72

16425237

-60048-94

4,294

2,0141,144142491537-34

2,706711403

1,293299

2,8821,430458-34643385

-647-68-440-139

-647-59291

-64633

-266

6,236

3,1891,6235971446840

2,703860485

1,121237

2,7582,0711280

322237

-31-37-1824

806295520

-12516101

5,036

2,5911,25123515476341

3,2501,723292976259

1,39765814441344209

-69-29-7434

458238349

-26610126

5,191

3,4871,107698191

-31826

3,6292,572544546-33

2,1811,61517726114251

-125-42-39-44

-494-656600-9714

-354

3,851

2,33546360924309112

1,8051,275498

-105136

1,7131,098

6112250246

3254

-6543

301-93632

-13517

-121

2,421

2,150- 6 2284

-13310873

5971,048

324

83

1,6881,345-155

73206219

- 6 0- 7 8

15

196-165

792-258

23-196

1. The Board's series cover most short- and intermediate-term credit extendedto individuals that is scheduled to be repaid (or has the option of repayment) intwo or more installments.

These data also appear in the Board's G.19 (421) release. For address, seeinside front cover.

2. More detail for finance companies is available in the G. 20 statistical release.3. Excludes 30-day charge credit held by travel and entertainment companies.

Consumer Installment Credit A41

1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1

Percent unless noted otherwise

Item

INTEREST RATES

Commercial banks2

3 120-month mobile home'4 Credit card

Auto finance companies

6 Used car . . .

OTHER TERMS4

Maturity (months)

8 Used carLoan-to-value ratio

9 New car10 Used car

Amount financed (dollars)11 New car12 Used car

1985

12.9115.9414.9618.69

11.9817.59

JI.541.4

9194

9,9156,089

1986

11.3314.8213.9918.26

9.4415.95

50.042.6

9197

10,6656,555

1987

10.4514.2213.3817.92

10.7314.60

53.545.2

9398

11,2037,420

1987

Nov.

10.8614.5813.6217.82

12,2414.90

55.445.3

9499

11,6307,646

Dec.

n.a.n.a.n.a.n.a.

12.2314.97

55.545.3

9399

11,6457,718

1988

Jan.

n.a.n.a.n.a.n.a.

12.1914.56

55.547.2

9398

11,5347,612

Feb.

10.7214.4613.4517.80

12.2614.75

55.946.8

9499

11,4477,619

Mar.

n.a.n.a.n.a.n.a.

12.2414.77

56.046.9

9498

11,4937,587

Apr.

n.a.n.a.n.a.n.a.

12.2914.82

56.246.9

9498

11,5537,662

May

10.5514.4013.4917.78

12.2914.81

56.246.9

9499

11,6247,778

1. These data also appear in the Board's 0.19 (421) release. For address, seeinside front cover.

2. Data for midmonth of quarter only.

3. Before 1983 the maturity for new car loans was 36 months, and for mobilehome loans was 84 months.

4. At auto finance companies.


1.57 FUNDS RAISED IN U.S. CREDIT MARKETS

Billions of dollars; half-yearly data are at seasonally adjusted annual rates.

Transaction category, sector

1 Total net borrowing by domestic nonflnandal sectors

By sector and instrument

8 Corporate bonds

11 Multifamily residential12 Commercial13 Farm

15 Consumer credit

17 Open market paper18 Other

21 Households . . .22 Farm

25 Foreign net borrowing in United States26 Bonds

30 Total domestic plus foreign

31 Total net borrowing by financial sectors

By instrument

33 Sponsored credit agency securities

37 Corporate bonds38 Mortgages39 Bank'loans n.e.c

fly sector

44 Private "financial sectors45 Commercial banks46 Bank affiliates47 Savings and loan associations48 Finance companies49 RElTs50 CMO Issuers

51 Total net borrowing

53 State and local obligations

55 Mortgages

59 Other loans

60 Total new shire issues

61 Mutual funds62 All other

1983 1984 1985 1986 1987

1984

H2

1985

HI H2

1986

HI H2

1987

HI H2

Nonflnancial sectors

550.2

186.6186.7

- . 1

363.6253.4

53.716.0

183.6117.514.249.32.6

110.256.623.2-.831.3

363.634.0

188.24.1

77.060.3

17.33.13.66.54.1

567.5

99.3

67.81.4

66.4

31.517.4*

- . 121.3-7 .0

1.466.431.55.0

12.1-2 .112.9

3.7

666.8

254.453.736.5

183.656.626.726.928.4

61.8

27.234.628.32.63.7

753.9

198.8199.0

- . 2

555.1313.6

50.446.1

217.1129.725.163.2-.9

241.590.467.121.762.2

555.127.4

234.6- . 1

97.0196.0

8.33.8

-6 .66.25.0

762.2

151.9

74.930.444.4

77.036.2

.4

24.115.7

30.444.477.07.3

15.622.718.9

12.4

914.1

273.850.486.1

217.490.461.152.082.9

-36.4

29.3-65.7-74.5

7.8.9

854.8

223.6223.7

- . 1

631.1447.8136.473.8

237.7151.929.262.5-6 .0

183.394.638.614.635.5

631.191.8

293.4-13.9

93.1166.7

1.23.8

-2 .86.2

-6 .0

856.0

199.0

101.520.679.9

1.197.448.6

2̂ 632.014.2

21.779.997.4-4 .914.522.353.9

12.2

1,054.9

324.2136.4126.1237.794.638.352.844.8

831.7

215.0214.7

.4

616.7452.7

30.8121.3300.6201.2

33.174.6-8 .4

164.065.866.5-9 .341.0

616.744.3

281.1-15.1116.2190.2

9.02.6

-1 .011.5

- 4 . 0

840.7

295.3

178.115.2

163.3- . 4

117.269.0

4!o24.219.8

14.9163.3117.2-3 .6

4.6791149.7

37.1

1,136.0

393.530.8

192.9300.765.869.526.456.5

672.2

143.8142.3

1.5

528.4435.6

34.399.4

301.7211.425.071.5-6 .3

92.841.89.32.3

39.4

528.433.9

248.9-11.7103.3153.9

3.86.3

-3 .62.1

-1 .0

676.0

284.2

168.330.2

138.8- . 8

116.065.8

28.824.4

29.5138.8116.0

7.13.0

35.730.8

1.438.0

960.2

312.934.5

171.5301.941.82.4

33.262.1

790.4

207.2207.3

- . 1

583.3342.567.069.8

205.7119.922.463.8-.4

240.886.263.016.874.7

583.338.6

234.2

92.2217.8

-19.46.3

-11.9-4 .3-9 .6

771.0

722.7

204.8204.9

-.1

518.0350.4

67.062.2

221.2139.225.059.5-2 .5

167.595.321.014.436.8

518.056.3

259.8- 7 . 085.7

123.2

-5 .85.5

-5 .82.8

- 8 . 2

716.9

Financial sectors

150.7

77.331.545.8

73.541.5

.4

.716.014.9

31.545.873.5-5 .310.823.329.6

15.0

175.1

96.826.670.3

78.348.9

2.314.612.5

26.670.378.3-4 .710.214.249.7- . 69.5

All sectors

921.8

284.567.0

117.6206.0

86.251.828.680.0

892.1

301.767.0

116.6221.295.317.531.841.1

986.8

242.5242.5

- . 1

744.3545.2205.885.3

254.2164.733.465.5-9 .5

199.193.956.214.834.2

744.3127.2327.1

-20.8100.5210.3

8.22.1

.19.6

-3 .7

995.0

222.8

106.314.689.52.2

116.548.3

.12.9

49.415.9

16.889.5

116.5-5 .018.930.458.1

14.9

1,217.8

346.6205.8135.7254.293.959.273.748.6

679.1

207.2207.4

- . 1

471.8365.6-15 .6135.3245.9163.931.359.7- 9 . 0

106.371.012.2

-13.136.2

471.84.3

233.0-16.9

96.7154.7

21.56.2

19.1-5 .3

700.5

242.3

136.18.7

126.5.8

106.272.1

.64.0

15.114.4

9.5126.5106.2-2 .7-1 .725.553.1

31.4

942.8

342.5-15 6213.6246.571.017.721.046.1

984.4

222.8222.0

.9

761.6539.8

77.2107.3355.4238.6

34.989.6-7 .7

221.760.6

120.8-5 .545.8

761.684.3

329.3-13.3135.6225.8

-3 .5-1 .1-3 .5

3.9-2 .7

980.9

348.2

220.121.7

200.0-1 .5128.166.0- . 54.0

33.425.2

20.2200.0128.1-4 .610.934.046.3

42.8

1,329.1

444.577.2

172.1354.960.6

121.331.766.8

External corporate equity funds raised in United States

19.9

85.7-65.8-81.5

12.03.7

91.6

163.3-71.7-80.8

8.3

1.6

75.4-73.8-76.5

5.4-2 .7

-24.9

32.2-57.1-69.4

8.83.5

3.0

64.2-61.2-75.5

11.23.1

3«.7

107.1-70.4-87.5

12.84.3

100.8

155.5-54.7-68.7

7.56.6

82.3

171.1-88.7-92.7

9.1-5 .1

623.1

152.8151.7

1.0

470.3443.6

34.997.3

311.4221.0

30.069.8-9 .3

26.728.3

-32.64.5

26.6

470.333.2

231.1-17.8104.5119.4

-7 .4-1 .7- 3 . 2-5 .3

2.7

615.7

319.3

180.58.1

174.0-1 .5138.780.2

- 4 J49.413.6

6.6174.0138.714.111.527.732.9

52.6

935.0

334.834 9

175.8311.6

28.3-40.5

48.641.5

84.5

147.2-62.7-70.0

5.41.9

721.4

134.9132.9

2.0

586.4427.7

34.1101.6291.9201.9

20.173.1- 3 . 2

158.855.251.2

.152.2

586.434.7

266.8- 5 . 6102.1188.5

15.014.3

-4 .19.5

-4 .7

736.3

249.7

156.552.3

104.1

93.251.4

-1.98.2

35.2

52.3104.193.2

- 5 . 643.828.7

23.3

986.0

291.434.1

167.3292.2

55.245.317.882.7

-81 .3

3.6-84.9-83 .0

5.3- 7 . 2

Flow of Funds A43

1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS

Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates.

Transaction category, or sector 1983 1984 1985 1986 1987

1984

H2

198S

HI H2

1986

HI H2

1987

HI H2

1 Total rands advanced In credit markets to domesticnomraandal lectors

By public agencies and foreign2 Total net advances3 U.S. government securities4 Residential mortgages5 FHLB advances to savings and loans6 Other loans and securities

Total advanced, by sector7 U.S. government8 Sponsored credit agencies9 Monetary authorities

10 Foreign

Agency and foreign borrowing not in line 111 Sponsored credit agencies and mortgage pools12 Foreign

Private domestic funds advanced13 Total net advances14 U.S. government securities15 State and local obligations16 Corporate and foreign bonds17 Residential mortgages18 Other mortgages and loans19 LESS: Federal Home Loan Bank advances

Private financial intermediation20 Credit market funds advanced by private financial

institutions21 Commercial banking22 Savings institutions23 Insurance and pension funds24 Other finance

25 Sources of funds26 Private domestic deposits and RPs27 Credit market borrowing

28 Other sources29 Foreign funds30 Treasury balances31 Insurance and pension reserves32 Other, net

Private domestic nonftnancial investors33 Direct lending in credit markets34 U.S. government securities35 State and local obligations36 Corporate and foreign bonds37 Open market paper38 Other

39 Deposits and currency40 Currency41 Checkable deposits42 Small time and savings accounts43 Money market fund snares44 Large time deposits45 Security RPs46 Deposits in foreign countries

47 Total of credit market Instruments, deposits, andcurrency

48 Public holdings as percent of total49 Private financial intermediation (in percent)50 Total foreign funds

MEMO: Corporate equities not included above51 Total net bwies52 Mutual fund shares53 Other equities54 Acquisitions by financial institutions55 Other net purchases

550.2

114.026.376.1- 7 . 018.6

9.769.810.923.7

67.817.3

521.3228.153.714.555.0

162.4- 7 . 0

395.8144.3135.6100.1

15.8

395.8215.4

31.5

148.914.6

- 5 . 3109.730.0

157.099.340.3

-11.612.017.0

232.814.328.8

215.4-39.0-8.318.53.1

389.9

20.175.938.2

61.827.234.651.110.7

753.9

157.639.356.515.746.2

17.174.38.4

57.9

74.98.3

679.5234.5

50.435.198.2

276.915.7

559.8168.9150.2121.8118.9

559.8316.977.0

165.98.84.0

118.634.5

196.7123.630.45.29.3

28.1

320.48.6

28.0150.749.084.35.0

-5 .1

517.1

20.782.466.7

-36 .429.3

-65.719.7

-56.1

854.8

202.347.194.614.246.3

16.8101.521.662.3

101.51.2

755.2277.0136.440.886.4

228.814.2

579.5186.383.0

156.0154.2

579.5213.2

97.4

268.919.710.3

141.098.1

273.2145.347.611.843.924.6

223.512.441.5

138.68.97.6

16.6-2.1

496.7

23.676.782.0

19.985.7

-65.843.4

-22.9

831.7

319.784.8

160.319.854.7

9.5177.330.2

102.6

178.19.0

699.2308.7

30.883.474.0

222.119.8

726.9194.7105.5176.7249.9

726.9271.4117.2

338.312.91.7

152.8170.9

89.447.1- 5 . 434.7-4 .817.9

291.814.4

100.1120.843.8

-11.618.35.9

381.2

38.0104.0115.5

91.6163.3

-71.750.641.0

672.2

231.658.2

135.624.413.4

-13.7166.2

10.069.2

168.33.8

612.6254.7

34.585.5

100.8161.624.4

558.7136.6135.8177.2109.4

558.7163.8116.0

279.044.0-5 .8147.893.0

169.969.458.723.06.8

12.1

180.619.0- . 2

78.827.231.026.9- 2 . 2

350.5

34.391.2

113.2

1.675.4

-73.843.0

-41.4

790.4

182.551.057.414.959.2

26.675.2

4.875.9

77.3-19.4

665.7233.5

67.053.084.8

242.314.9

532.1145.5133.595.3

157.8

532.1353.573.5

105.11.7

10.874.618.0

207.184.350.436.93.0

32.5

354.03.6

29.9169.973.479.1

1.2-3 .1

561.1

23.779.977.6

-24 .932.2

-57.139.7

-64.6

722.7

195.850.388.612.544.4

25.196.427.546.8

96.8-5 .8

618.0251.3

67.039.775.5

197.012.5

483.8143.354.5

139.4146.5

483.8191.478.3

214.110.813.9

118.671.4

212.5156.214.815.43.5

22.6

198.315.913.8

162.110.6

-7.312.2

- 9 . 0

410.7

27.378.357.7

3.064.2

-61.259.5

-55.8

986.8

208.743.9

100.715.948.2

8.4106.7

15.877.8

106.38.2

892.5302.7205.842.097.4

260.615.9

675.2229.4111.4172.5161.9

675.2235.0116.5

323.628.66.6

163.4124.7

333.9134.580.48.2

84.226.6

248.78.8

69.2115.1

7.122.521.14.9

582.6

21.075.6

106.4

36.7107.1

-70.427.3

9.5

679.1

264.774.0

123.714.452.6

10.8128.213.2

112.5

136.121.5

571.9268.6-15.6100.271.5

161.714.4

638.5117.294.5

169.0257.9

638.5252.2106.2

280.111.9

- 4 . 2136.6135.8

39.742.2

-67.668.8

-17.313.6

261.910.782.5

112.646.9

.210.0- . 9

301.6

37.8111.6124.4

100.8155.5

-54.746.554.3

984.4

374.695.6

196.925.256.9

8.2226.5

47.292.7

220.1-3 .5

826.4348.977.266.676.5

282.425.2

815.3272.3116.6184.4241.9

815.3290.6128.1

396.514.07.6

168.9206.1

139.251.956.8

1.122.1

321.618.2

117.8129.040.6

-23.326.512.8

460.9

38.298.7

106.7

82.3171.1

-88.754.627.7

623.1

237.045.4

166.813.611.1

-16.6168.1

10.874.6

180.5-7 .4

559.3289.5

34.970.384.194.113.6

578.599.1

106.4210.2162.8

578.560.0

138.7

379.824.54.3

175.2175.7

119.572.925.6-8 .019.09.9

45.19.6

-21.651.7

3.14.0

22.7-24.5

164.6

38.5103.499.2

84.5147.2

-62.767.417.1

721.4

226.371.0

104.635.215.4

-11.2164.7

9.163.8

156.515.0

666.5220.4

34.1100.7117.3229.2

35.2

538.9173.6165.1144.256.0

538.9265.4

93.2

180.363.5

-16.0120.3

12.5

220.866.391.853.9-5 .514.3

313.928.421.3

105.951.355.931.020.1

534.7

30.780.8

127.2

-81 .33.6

-84.918.5

-99.9

NOTES BY LINE NUMBER.1. Line 1 of table 1.57.2. Sum of lines 3-6 or 7-10.6. Includes farm and commercial mortgages.

11. Credit market funds raised by federally sponsored credit agencies, and netissues of federally related mortgage pool securities.

13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.Also sum of lines 28 and 47 less lines 40 and 46.

18. Includes farm and commercial mortgages.26. Line 39 less lines 40 and 46.27. Excludes equity issues and investment company shares. Includes line 19.29. Foreign deposits at commercial banks, bank borrowings from foreign

branches, and liabilities of foreign banking agencies to foreign affiliates, lessclaims on foreign affiliates and deposits by banking in foreign banks.

30. Demand deposits and note balances at commercial banks.

31. 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 14-18 less amounts acquired by private finance plus amounts

borrowed by private finance. Line 38 includes mortgages.40. Mainly an offset to line 9.47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.48. Line 2/line 1.49. Line 20/line 13.50. Sum of Unes 10 and 29.51. 53. Includes issues by financial institutions.NOTE. Full statements for sectors and transaction types in flows and in amounts

outstanding may be obtained from Flow of Funds Section, Division of Researchand Statistics, Board of Governors of the Federal Reserve System, Washington,D.C. 20551.

A44 Domestic Nonfinancial Statistics D September 1988

2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures'

1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.

Measure 198S 1986 1987

1987

Oct. Nov. Dec

1988

Jan. Feb. Mar/ Apr/ May' June

1 Industrial production

Market groupings2 Products, total3 Final, total4 Consumer goods5 Equipment6 Intermediate7 Materials

Industry groupings8 Manufacturing

Capacity utilization (percent)2

9 Manufacturing10 Industrial materials industries

11 Construction contracts (1982 - 100)3

12 Nonagricultural employment, total4

13 Goods-producing, total14 Manufacturing, total15 Manufacturing, production-worker....16 Service-producing17 Personal income, total18 Wages and salary disbursements19 Manufacturing ,20 Disposable personal income3

21 Retail sales*.

Prices7

22 Consumer (1982-84 - 100)23 Producer finished goods (1982 - 1 0 0 ) . . .

123.7

130.6131.0119.8145.8129.3114.3

126.4

80.180.2

150.0

118.3102.197.892.6

125.0206.9'198.8'172.8'205.8'189.6

107.6104.7

125.1

133.3132.5124.0143.6136.2113.8

129.1

79.878.5

158.0

120.7100.996.391.2

129.0219.7'210.7'177.4'218.9'199.5

109.6103.2

129.8

138.3136.8127.7148.8143.5118.2

134.6

81.080.5

161.0

124.1101.896.892.1

133.4235.1'226.2'183.8'232.7'209.3

113.6105.4

132.S

140.9139.3129.0153.0146.1121.2

137.3

82.082.1

164.0

125.3102.897.792.8

134.8242.4'231.7'187.4'240.1'211.2

115.3106.2

133.2

141.0139.2129.4152.2147.3122.5

137.9

82.282.9

157.0

125.7103.298.093.2

135.1241.6'233.3'188.3'239.0'211.9

115.4106.3

133.9

141.3139.8129.8153.1146.5123.7

138.9

82.583.7

157.0

126.1103.598.393.5

135.6245.0'2 3 6 ^188.2'242.1'214.2

115.4105.8

134.4

142.7141.1131.2154.3148.1123.0

139.4

82.783.0

145.0

126.4103.498.493.5

136.1244.0'235.7'189.4'242.4'214.5

115.7106.3

134.4

143.4141.6131.3155.3149.4122.1

139.5

82.682.3

159.0

127.0103.898.593.7

136.7245.5'237.3'190.2'244.8'216.7

116.0106.1'

134.7

143.6141.8131.2155.9149.9122.5

140.0

82.782.4

154.0

127.3104.198.693.7

137.1248.0238.9193.6247.0220.3

116.5106.2

135.4

144.0142.4131.8156.6149.2123.6

140.7

82.983.0

144.0

127.6104.598.893.9

137.4248.6240.9192.8243.0219.4

117.1106.9

136.1

144.6143.4132.5157.7149.0124.5

141.6

83.283.4

157.0

127.9104.699.094.1

137.7249.7242.2193.7249.0219.9

117.5107.5

136.6

145.0143.8132.7158.5149.3125.2

141.9

83.283.7

165.0

128.4105.099.294.4

138.1251.4244.0195.1251.1221.1

118.0107.9

1. A major revision of the industrial production index and the capacityutilization rates was released in July 1985. See "A Revision of the Index ofIndustrial Production" and accompanying tables that contain revised indexes(1977-100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71(July 1985), pp. 487-501. The revised indexes for January through June 1985 wereshown in the September BULLETIN.

2. Ratios of indexes of production to indexes of capacity. Based on data fromFederal Reserve, McGraw-Hill Economics Department, Department of Com-merce, and other sources.

3. Index of dollar value of total construction contracts, including residential,nonresidential and heavy engineering, from McGraw-Hill Information SystemsCompany, F. W. Dodge Division.

4. Based on data in Employment and Earnings (U.S. Department of Labor).Series covers employees only, excluding personnel in the Armed Forces.

5. Based on data in Survey of Current Business (U.S. Department of Com-merce).

6. Based on Bureau of Census data published in Survey of Current Business.7. Data without seasonal adjustment, as published in Monthly Labor Review.

Seasonally adjusted data for changes in the price indexes may be obtained fromthe Bureau o f Labor Statistics, U.S. Department of Labor.

NOTE. Basic data (not index numbers) for series mentioned in notes 4,5,and 6,and indexes for series mentioned in notes 3 and 7 may also be found in the Surveyof Current Business.

Figures for industrial production for the last two months are preliminary andestimated, respectively.

Selected Measures A45

2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT

Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.

Category 1985 1986 19871987

Nov. Dec.

1988

Jan. Feb. Mar. Apr.' May June

HOUSEHOLD SURVEY DATA

1 Nooliwtltuaonitf population1

2 Labor force (Including Armed Forces)1

3 Civilian labor forceEmployment

4 NonagricuHural industries2

5 AgricultureUnemployment

6 Number7 Rate (percent of civilian labor force ) . . . .8 Not in labor force

ESTABLISHMENT SURVEY DATA

9 NonagricuKural payroll employment3

10 Manufacturing11 Mining12 Contract construction13 Transportation and public utilities14 Trade15 Finance16 Service17 Government

110,440

117,695115,461

103,9713,179

8,3127.2

62,745

97,519

19,260927

4,6735,238

23,0735,955

22,00016,394

182,822

120,078117,834

106,4343,163

8,2377.0

62,744

99.52S

18,965777

4,8165,255

23,6836,283

23,05316,693

185,010

122,122119,865

109,2323,208

7,4256.2

62,888

102,310

19,065721

4,9985,385

24,3816,549

24,19617,015

185,737

122,861120,594

110,3323,172

7,0905.9

62,876

103,678

19,297736

5,0905,466

24,7196,608

24,60417,158

185,882

122,984120,722

110,5293,215

6,9785.8

62,898

104,001

19,348735

5,1185,481

24,7686,619

24,72517,207

186,083

123.436121,175

110,8363,293

7,0465.8

62,647

104,2<2

19,369728

5,0835,499

24,9376,633

24,79517,218

186,219

123,598121,348

111,1823,228

6.938

62,621

104,729

19,390731

5,1505,513

25,0806,636

24,97517,254

1(6,361

123,153120,903

110,8993,204

6,8015.6

63,208

105,020

19,405733

5,1925,530

25,1116,651

25,07817,320

186,478

123,569121,323

111,4853,228

6,6105.4

62,909

105,281

19,460737

5,2385,543

25,1826,650

25,16317,308

186,600

123,204120,978

111,1603,035

6,7835.6

63,396

105,502r

19,489'737

5,238'5,558'

25,240"6,650'

25,232'17,358'

186,755

123,665121,472

111,9333,085

1 363,090

105,848

19,534741

5,2945,581

25,3426,665

25,39017,301

1. Persons 16 years of age and over. Monthly figures, which are based onsample data, relate to the calendar week that contains the 12th day; annual dataare averages of monthly figures. By definition, seasonality does not exist inpopulation figures. Based on data from Employment and Earnings (U.S. Depart-ment of Labor).

2. Includes self-employed, unpaid family, and domestic service workers.

3. Data include all full- and part-time employees who worked during, orreceived pay for, the pay period that includes the 12th day of the month, andexclude proprietors, self-employed persons, domestic servants, unpaid familyworkers, and members of the Armed Forces. Data are adjusted to the March 1984benchmark and only seasonally adjusted data are available at this time. Based ondata from Employment and Earnings (U.S. Department of Labor).

A46 Domestic Nonfinancial Statistics • September 1988

2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1

Seasonally adjusted

Series1987

Q3

1988

Ql Q2

1987

Q3 Q4

1988

Ql Q2

1987

Q3 Q4

1988

Ql Q2

Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent)

1 Total industry

2 Mining3 Utilities4 Manufacturing.

6 Advanced processing.

7 Materials

8 Durable goods9 Metal materials

10 Nondurable goods11 Textile, paper, and chemical.12 Paper13 Chemical

14 Energy materials.

130.9

100.6111.6

135.7

119.2145.8

U9.1

125.583.6

128.2130.5144.5130.7

100.0

15 Total Industry

16 Mining

17 Utilities

18 Manufacturing

19 Primary processing...20 Advanced processing.21 Materials22 Durable goods

23 Metal materials

24 Nondurable goods

25 Textile, paper, andchemical

26 Paper27 Chemical28 Energy materials...

133.0

103.2112.5

137.9

122.1147.5

121.9

129.691.1

129.3132.3

101.8

Previous cycle2 Latest cycle3

134.5

102.5115.1

139.6

122.7149.6

122.6

131.386.6

130.3133.1

100.9

1987

136.0

104.1112.4

141.4

124.0151.8

124.4

134.1

131.7133.9

161.3

127.0138.8

166.7

139.8182.9

147.2

163.9109.4144.7144.4145.1

101.2

1J0.9

120.1

162.2

128.4139.4

167.7

140.6184.1

147.8

164.7108.8145.6145.4

119.9

163.1

127.7139.8

168.9

141.6185.6

148.5

165.7108.8146.8146.7

119.7

1987

High Low High Low June Oct. Nov. Dec, Jan. Feb. Mar. Apr.

164.2

127.0140.1

170.2

142.7186.7

149.3

166.8109.1148.3148.5

119.4

81.2

78.080.5

81.4

85.379.7

81.0

76.776.588.690.499.686.3

83.3

82.1

81.280.6

82.3

86.980.1

82.9

79.184.089.391.599.289.1

85.2

1988

Capacity utilization rate (percent)

88.6

92.895.6

87.7

91.986.0

92.0

91.899.2

91.1

92.898.492.5

94.6

72.1

87.882.9

69.9

68.371.1

70,5

64.467.1

66.7

64.870.664.4

86.9

86.9

95.288.5

M.5

85.1

89.1

89.893.6

88.1

89.497.387.9

94.0

69.5

76.978.0

68.0

65.169.5

68.5

60.945.770.7

68.879.963.5

82.3

80.3

76.679.0

80.8

84.079.2

79.8

75.971.5

86.1

87.196.383.1

82.8

81.9

80.680.5

82.0

86.280.1

82.1

78.382.4

88.2

90.497.4

84.9

82.1

81.581.2

82.2

87.080.0

82.9

79.083.3

89.0

91.098.788.6

85.7

82.4

81.580.4

82.5

87.880.1

83.7

80.287.6

90.5

92.7101.690.8

85.1

82.5

80.782.4

82.7

87.180.7

83.0

79.780.1

90.8100.687.8

84.7

82.4

79.578.3

82.6

86.680.7

82.3

79.379.3

87.3

88.597.885,7

84.1

82.4

80.180.5

82.7

86.880.8

82.3

79.178.2

88.3

89.998.087.4

83.8

82,7

81.880.6

82.9

87.081.1

83.1

79.979.2

88.6

90.098.187.4

84.8

82.4

80.282.1

82.7

86.980.7

82.5

79.479.288.189.698.887.0

84.2

May

82.9

81.382.1

83.1

87.181.3

83.4

80.681.1

88.7

90.098.7'88.3'

84.6

82.9

82.080.2

83.1

86.981.4

83.4

80.481.1

90.2

84.7

June

85.1

82.181.8

83.2

86.881.6

83.7

80.882.0

88.7

89.9

85.7

1. These data also appear in the Board's O.3 (402) release. For address, seeinside front cover.

2. Monthly high 1973; monthly low 1975.3. Monthly highs 1978 through 1980; monthly lows 1982.


2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1

Monthly data are seasonally adjusted

Groups

MAJOR MARKET

1 Total index

2 Products3 Final oroducts..

5 Equipment

7 Materials

Consumer goods

13 Auto parts and allied goods14 Home goods15 Appliances, A/C and TV16 Appliances and TV

18 Miscellaneous home goods

20 Consumer staples

22 Nonfood staples • • •23 Consumer chemical products . . . . .

26 Consumer fuel27 Residential utilities

Equipment

30 Construction, mining, and farm

32 Power

34 Transit

Intermediate products36 Construction supplies

38 General business supplies

Materials

42 Equipment parts43 Durable materials n.e.c.,44 Basic metal materials

46 Textile, paper, and chemicalmaterials

47 Textile materials ,

49 Chemical materials50 Miscellaneous nondurable materials . . .

1977pro-por-tion

100.00

57.7244.7725.5219.2512.9442.28

6.892.981.791.16

631.193.911.241.19.96

1.71

18.6315.297.807.492.751.882.861.441.42

18.0114.342.083.271.275.222.493.67

5.956.995.671.31

20.504.925.949,644.64

10.09

7.531.521.554.462.57

11.697.574.12

1987avg.

129.8

138.3136.8127.7148.8143.4118.2

120 2118.5113.190.7

1605123.5121.6141.5142.1130.7102.0

130 5137.3136.2138.5162.9151.8106.393.1

119.8

153.6144 562.2

117.982.6

2265108.4188.9

131.5153.5158.6131.1

125.0100.9159.0116.486.7

125.8

127.6111.7141.0128.4120.4

99.8105.090.3

1987

June

129.1

137.8136.2127.2148.1143.3117.2

117.4114.9107.987.4

146 0125.4119.3133.4133.4132.3101.8

130.9137.6136.0139.2164.4153,1105.991.9

120.2

153.2144.263.0

117.284.0

226 7105.4188.6

131.5153.4158.5131.1

124.099.2

158.3115.583.6

124.1

125.1111.9139.0124.9120.9

99.4104.091.0

July

130.6

139.5137.9128.9149.7145.0118.5

120.4117.5112.386.4

160.4125.3122.5141.7142.6134.1102.2

132.1138.9137.2140.6165.7153.8108.092.7

123.6

154.4145.665.0

120.481.8

227.9106.1188.7

133.1155.2160.5132.3

125.298.5

159.3117.786.6

127.6

129.6117.8145.4128.1122.0

99.0102.592.5

Aug.

131.2

139.9138.4129.4150.2145.3119.4

121.2118.0112.476.8

178.4126.6123.6147.1145.5132.0102.0

132.5139.2137.4141.2167.4153.9107.791.4

124.3

154.5145.666.4

120.982.8

227.7104.7189.1

132.5156.3161.0135.8

125.599.6

159.5117.990.4

128.3

130.6116.714J.0130.4121.4

100.9104.694.1

Sept.

131.0

139.4137.8127.7151.2144.9119.7

118.6114.2107.279.1

159.4124.8121.9141.8140.6131.6102.2

131.0137.8137.0138.6163.6153.2105.091.6

118.7

155.2146.366.1

122.081.1

229.1105.1189.8

132.3155.6160.9132.7

126.499.0

161.1118.991.3

128.6

131.2116.0143.3132.2120.9

100.2104.692.2

Oct.

132.5

140.9139.3129.0153.0146.1121.2

124.3124.3122.294.7

173.2127.5124.3145.7146.1132.9104.1

130.8137.4137,5137.2160.0151.8105.892.4

119.4

157.2148.766.5

120.583.0

232.4112.5190.3

133.3157.1162.3134.6

128.7102.3162.2121.695.3

128.2

131.0113.0142.0133.4119.7

101.8106.892.7

Nov. Dec.

Index (1977 •

133.2

141.0139.2129.4152.2147.3122.3

123.9121.3118.791.9

168.5125.2125.8190.1150.5133.5103.9

131.5138.3137.3139.4163.5152.8107.493.2

121.8

156.6148.366.3

120.683.1

232.1111.2188.7

134.2158.4164.3132.9

130.2103.1163.2123.696.5

129.6

132.3112.7144.4134.7121.7

102.8108.492.6

1J3.9

141.3139.8129.8153.1146.5123.7

120.3115.4110.283.7

159.5123.3123.9142.7142.6133.9104.8

133.3140.7139.2142.2167.7157.0108.095.4

120.7

157.8149.867.4

122.284.2

235.5109.1188.9

133.8157.4163.3131.8

132.0104.6165.3125.3100.0

132.5

135.6113.6149.0138.4123.3

101.7107.790.7

1988

Jan,

100)

134.4

142.7141.1131.2154.3148.1123.0

121.7118.7112.877.5

178.3127.7124.0142.2140.9134.2105.2

134.7142.3140.3144.3170.7157.1110.695.4

126.0

159.2151.267.1

125.486.2

238.0106.5190.6

136.8137.8163.1135.0

131.8104.7167.4123.792.9

129.9

132.7112.6148.0134.2121.8

101.4107.390.6

Feb.

134.4

143.4141.6131.3155.3149.4122.1

120.6117.6111.879.5

171.6126.4122.8140.6141.4132.3104.7

135.3142.9140.8145.0171.7157,5111,397.0

125.8

160.3152.467.6

124.988.3

240.3108.2191.0

137.7159.4165.0135.3

131.4104.4167.6123.091.4

128.1

129,9110.2144.4131.5123.0

100.6104.893.0

Mar/

134.7

143.6141.8131.2153.9149.9122.3

120.4120.6116.486.3

172.2126.9120.2132.8132.7133.1103.9

135.1142.5139.4145.7172.7159.1111.097.9

124.5

160.8153.368.3

127.087.8

239.9111.1189.9

137.3160.7166.6135.3

131.3103.5167.3123.490.5

130.1

132.4112.7144.8134.8123.2

100.6105.092.6

Apr.

13S.4

144.0142.4131,8156.6149.2123.6

123.2121.9118.091.0

168.2127.8124.1141.9142.2133.8105.8

134.9142.2137.7146.9174.2161.9110.998.9

123.2

161.5154.670.7

128.487.3

241.0112.5188.6

137.5159.3165.5132.3

132.8106,3168.7124.291.5

131.3

133.7113.0145.8136.5124.3

100.9106.990.0

May"

136.1

144.6143.4132.5157.7149.0124.5

125.4126.6126.998.9

178.9126.2124.5141.8142.6136.2105.4

135.1142.6138.9146.5176.0161.3108.694.0

162.8156.571.7

129.287.6

243.9115.6187.1

137.3158.9164.8133.5

134.6109.7170.2125.494.6

132.0

134.0111.3147.2137.2

100.3105.091.6

June'

136.6

145.0143.8132,7158.5149,3123.2

125.5126.3125.399.0

127.9124.8142.9

135.3142.8

146.8

163.5157.370.9

129.888.1

245.1117.0187.9

136.7

135.0110.1170.9125.694.9

131.9

134.0

102.3


2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued

Groups

MAJOR INDUSTRY

1 Mining and utilities2 Mining3 Utilities4 Manufacturing

6 Durable

Mining7 Metalg Coal

Nondurable manufactures11 Foods

13 Textile mill products...

17 Chemicals and products

19 Rubber ana plastic products

Durable manufactures

25 Iron and steel

27 Nonelectrical machinery28 Electrical machinery . •.

30 Motor vehicles and parts31 Aerospace and miscellaneous

transportation equipment ..

33 Miscellaneous manufactures

Utilities34 Electric

MAJOR MARKET

35 Products, total

36 Final

38 Equipment

SICcode

1011.12

1314

2021222326

2728293031

242532

33331.2

343536

37371

372-6.93839

1977propor-

tion

15.799.835.96

84.2135.1149.10

.501.607.07

.66

7.9662

2.292.793.15

4.548.052.402.80

.53

2.301 272.72

5.333.496.469.547.15

9.135.25

3.872.661.46

4.17

517.5

405.7272.7133.0111.9

1987avg.

104.3100.7110.3134.6136.7133.1

77.5131.892.7

128.2

137.7103 4115.8107.4144.4

172.0140.193.5

163.660.0

130.3152 8119.1

81.570.8

111.0152.7172.3

129.2111.8

152.8143.9102.6

126.6

1,735.8

1,333.8866.0467.8402.0

1987

June

103.099.2

109.4134.0136.9132.0

70.7128.891.8

128.5

137.7107 01172107.7142.6

174 1139.3923

165.460.8

131.1153 9117.9

78.868.3

111 1151.8170.5

126 5107.4

152.4144.5101.2

128.8

1,720.4

1,320.1855.1465.0400.3

July

103.799.2

111.2135.6138.5133.5

71.4127.991.8

130.7

138.5106.8118.3109.7148.8

174.0140.894.1

167.259.2

132.8156.2118.8

81.470.9

111.1155.3172.5

127.6109.4

152.3143.8100.5

131.0

Aug.

105.4100.9112.9135.9138.8133.8

79.3130.593.0

130.3

138.8110.4119.8108.4148.9

174.7142.392.9

164.861.3

131.1155 2116.5

85.176.0

110.1154.3174.3

128.1109.1

153.9146.3102.2

132.0

Sept.

105.4101.9111.2135.7138.6133.7

86.5133.393.3

130.0

139.5101.7118.2107.6147.4

174.9142.493.5

165.260.7

126.9155.9118.6

84.574.6

111.1156.6173.4

125.5105.6

152.5145.6102.1

127.5

Oct.

106.8103.6112.1137.3138.1136.8

85.6140.394.1

131.0

138.0103.7116.8108.0146.0

175.2141.594.6

166.759.6

129.8156.0118.9

90.682.0

113.5158.0175.5

132.0116.0

153.7146.7104.6

126.8

Nov. Dec.

Index (1977 •

107.9104.6113.2137.9139.6136.7

90.4142.994.2

134.1

138.9106 5117.3109.4148.3

175.7144.493.3

169.960.7

134.0158 5120.5

90.279.7

113.6157.2175.6

130.4114.0

152.7147.8104.5

127.5

107.3104.6111.7138.9141.3137.3

96.5140.694.1

135.6

140.1110 5118.2107.8150.6

176.9147.996.1

170.657.5

133.6159.4120.1

90.681.9

115.8161.0175.9

128.1110.2

152.4145.5105.6

125.6

1988

Jan.

= 100)

107.8103.3115.2139.4141.4137.9

91.5140.293.1

132.1

141.2105 8116.2108.7149.9

177.5147.996.3

170.558.3

136.3158 0120.4

86.577.8

117.1162.9177.4

128.6109.7

154.2148.2105.0

130.3

Gross value (billions of 1982 dollars, annual rates

1,732.5

1,326.6863.2463.5405.9

1,741.7

1,334.9866.4468.5406.8

1,735.9

1,330.3856.9473.4405.6

1,774.1

1,360.9876.6484.4413.2

1,772.4

1,359.9879.8480.1412.5

1,778.8

1,359.4881.2478.2419.4

1,790.6

1,375.5893.6481.9415.1

Feb.

106.8101.5115.6139.5141.1138.4

83.9133.792.4

134.3

141.9107.0115.3108.5148.0

178.7145.495.9

172.359.7

139.0158.3121.6

86.477.4

117.6163.6177.8

128.4109.3

154.5149.2104.4

130.7

)

1,7*7.5

1,381.1893.7487.3416.5

Mar.'

106.7102.7113.3140.0141.7138.8

84.9129.194.8

136.9

141.1107 2117.0108.7149.1

180.4146.498.4

172.259.5

137.8159 4122.5

85.174.2

118.8164.6176.6

130.0113.0

153.0149.7105.1

129.0

1,807.5

1,385.9893.2492.7421.6

Apr.

107.1104.8110.8140.7142.1139.7

85.1136.095.8

141.0

139.6107 6117.9109.2149.2

181.5148.698.4

172.658.0

137.8159 7121.4

85.374.5

118.9166.3178.9

130.4114.8

151.6151.6105.8

127.4

1,810.4

1,393.2897.8495.3417.2

May"

106.6103.4111.8141.6142.1141.2

130.295.1

140.9

140.4

117.0

149.8

180.9149.395.2

171.857.0

137.7160 2121.7

89.178.7

119.7168.7179.2

133.2119.6

151.6151.0106.1

128.8

1,815.5

1,397.5898.1499.4417.9

June'

108.1104.0114.7141.9142.2141.7

132.095.4

181.5

94.2

89.0

120.4169.5180.4

133.2119.2

152.2151.5

1,811.0

1,395.2892.4502.8415.8

1. These data also appear in the Board's G. 12.3 (414) release. For address, seeinside front cover.

A major revision of the industrial production index and the capacityutilization rates was released in July 1985. See "A Revision of the Index of

Industrial Production" and accompanying tables that contain revised indexes(1977-100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71(July 1985), pp. 487-501. The revised indexes for January through June 1985 wereshown in the September BULLETIN.


2.14 HOUSING AND CONSTRUCTION

Monthly figures are at seasonally adjusted annual rates except as noted.

Item 1985 1986 1987

1987

Aug. Sept. Oct. Nov. Dec.

1988

Jan. Feb.' Mar/ Apr/ May

Private residential real estate activity (thousands of units)

NEW UNITS

1 Permits authorized2 l-famlly3 2-or-more-family

4Started5 1-famUy6 2-or-more-family

7 Under construction, end of period1

8 1-family9 2-or-more-family

10 Completed11 1-family12 2-or-more-family

13 Mobile homes shipped

Merchant builder activity in1-famify units

14 Number sofa15 Number for sale, end of period1...

Price (thousands of dollars)1

Median16 Units sold

Average17 Units sold

EXISTING UNITS (1-family)

18 Number sold

Price of units sold(thousands of dollars)1

19 Median20 Average

CONSTRUCTION

21 Total put In pbce

22 Private23 Residential24 Nonresidentlal, total

Buildings25 Industrial26 Commercial27 Other28 Public utilities and other

29 Public30 Military31 Highway32 Conservation and development...33 Other

350

84.3

101.0

3,217

75.490.6

1,7501,071

679

1,8051,179

626

1,074583490

1,7561,120

637

244

748361

92.2

112.2

3,566

80.398.3

1,5351,024

511

1,6211,146

474

987591397

1,6691,123

546

233

672370

104.7

127.9

3,530

85.6106.2

1,5141,014

500

1,5831,109

474

1,044621423

1,6331.069

564

234

673361

106.8

128.5

3,410

86.5107.0

1,501983518

1,6791.211

468

1,046627419

1,5911,100

491

240

644361

106.5

133.5

3,430

85.5106.9

1,453962491

1,5381,105

433

1,044627417

1,5651,114

451

234

653360

106.5

125.8

3,470

84.6106.1

1,459971488

1.6611,129

532

1,042625417

1,5711.088

483

222

625362

117.0

139.2

3,370

85.0106.6

1,372957415

1,3991,035

364

1,016618398

1,6241,104

520

227

586365

111.8

136.2

3,330

85.4107.1

1,248918330

1,3821,016

366

1,008614394

1,5501,098

452

200

579368

119.0

144.4

3,170

87.4108.7

1,4291,003

426

1,5191,102

417

983596387

1,4521,043

409

648359

110.9

137.6

3,250

88.1110.4

1,4761,030

446

1,5291,172

357

999617382

1,5981,094

504

212

653374

107.0

131.6

3,330

87.9110.7

1,449960489

1,5841,093

491

1,001623378

1,6351,054

581

213

660371

111.0

135.6

3,520

87.3108.7

1.436982454

1.384996388

990612378

1,4581,086

372

216

658375

110.0

135.9

3,590

88.8111.9

Value of new construction3 (millions of dollars)

3S5V735'

291,665158/75133,190

15,76959,62912,61945,173

64.07C3235'1 W1 , W4^77'

34j518'

386,093'

314,651'187,147127,504'

13,74756,76213,21643,779'

71,437'3,868'

22,681'4,646'

40,242'

398.84T

323,819'194,772'129,047'

13,707'55,448'15,464'44,428'

75,028'4,327'

22,758'5.16T

42,781'

398,26T

325,664'193,117'132,547'

u,ur57,839'15,227'45,169'

72.603'4,158'

21,783'5,137'

41,525'

4OS,375'

327,131'194,801'132,33c

15,332'56,531'15,497'44,970'

78,244'6,048'

23,145'5,023'

44,028'

400,8ir

325,915'194,547'131,368'

13,968'56,890'16,018'44,492'

74,903'4,010'

24.374'5,144'

41,375'

407,0*6'

331,497'19SJ9V135,898'

14,512'59474'16,692'45,320'

75,569'5,080'

23,439'4,871'

42,179'

410,870'

331,641'195,822'135,819'

14,13c55,831'17,708'48.15C

79,228'4,879'

25,274'5,759'

43,316'

3M.244'

321.55C195,168'126,382'

13,480'53,555'16,954'42,393'

73,715'4,172'

24,808'4,038'

40.69T

392,456

317,754192,097125,657

13,48953,57117,10141,496

74,7023,280

25,3484,535

41,539

403,555

324,257195,554128,703

14,54654,84317,30142,013

79,2984,216

26,9634,899

43,220

402,678

323,624195,279128,345

15,48056,08116,39640,388

79,0544,384

27,0564,443

43,171

407,080

328,180193,432134,748

16,68558,37016,92242,771

78,9004,277

25,0964.671

44,856

1. Not at annual rates.2. Not seasonally adjusted.3. Value o r new construction data in recent periods may not be strictly

comparable with data in prior periods because of changes by the Bureau of theCensus in its estimating techniques. For a description or these changes seeConstruction Reports (C-30-76-5), issued by the Bureau in July 1976.

NOTE. Census Bureau estimates for all series except (1) mobile homes, whichare private, domestic shipments as reported by the Manufactured HousingInstitute and seasonally adjusted by the Census Bureau, and (2) sales and pricesof existing units, which are published by the National Association of Realtors. Allback and current figures are available from the originating agency. Permitauthorizations are those reported to the Census Bureau from 16,000 jurisdictionsbeginning with 1978.


2.15 CONSUMER AND PRODUCER PRICES

Percentage changes based on seasonally adjusted data, except as noted

Item

Change from 12months earlier

1987June June

Change from 3 months earlier(at annual rale)

1987

Sept. Dec,

1988

Mar. June

Change from 1 month earlier

1988

Feb.' Mar.' Apr. May June

IndexlevelJune1988

(1982- 100)'

CONSUMER PRICES2

1 AH Items

2 Food3 Energy items4 All items less food and energy.5 Commodities6 Services

PRODUCER PRICES

7 Finished goods8 Consumer foods9 Consumer energy

10 Other consumer goods.11 Capital equipment

12 Intermediate materials3

13 Excluding energy

Crude materials14 Foods15 Energy16 Other

3.7

5.3.0

4.13.14.6

2.34.2

-4 .12.61.6

2.62.7

8.77.48.1

4.0

3.3

4i53.64.9

2.31.7

-2.73.72.5

5.46.9

8.7-6.515.4

3.9

2.16.03.82.94.3

3.8-1 .816.54.64.0

5.65.3

-4.85.9

39.4

3.2

2.8-3.9

4.42.55.0

-1.9-5.7-9.6

1.7- .7

4.37.2

-4.8-15.2

18.0

4.2

1.4-4.9

5.44.75.9

2.35.6

-19.65.33.2

3.97.8

16.7-23.6

13.8

4.5

7.14.24.33.94.5

5.09.86.22.83.6

7.B7.3

31.511.5

-5.3

- .3- .6

.2

.1

.4

- .2-1.1-1.0

.3

,2.2

2.2- . 61.2

.6-2.3

.6

.7

.8

.4

.6

.4

.43.1

.0

.2

.42.5

.2

2.41.3

-1.7

.6- . 2

.4

.2

.5

.41.1

-1.6.3.4

.6

4.2-1.0

111.0

117.691.0

123.0115.4127.4

107.9112.560.8

117.9114.2

107.1114.9

108.470.7

131.0

1. Not seasonally adjusted.2. Figures for consumer prices are those for all urban consumers and reflect a

rental equivalence measure of homeownership after 1982.

3. Excludes intermediate materialt for food manufacturing and manufacturedanimal feeds.

SOURCE. Bureau of Labor Statistics.


2.16 GROSS NATIONAL PRODUCT AND INCOME

Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.

Account 1985r 1986' 1987'

1987'

Q2 Q3 Q4

1988

Ql'

GROSS NATIONAL PRODUCT

1 Total

fly source2 Personal consumption expenditures3 Durable goods .V.4 Nondurable goods5 Services

6 Gross private domestic investment7 Fixed investment8 Nonresldential9 Structures

10 Producers' durable equipment11 Residential structures

12 Change in business inventories13 Nonfarm

14 Net exports of goods and services15 Exports16 Imports

17 Government purchases of goods and services . .18 Federal19 State and local

fly major type of product20 Final sales, total21 Goods22 Durable23 Nondurable24 Services23 Structures

26 Change in business inventories27 Durable goods28 Nondurable goods

29 MEMO

Total GNP In 1982 dollars

NATIONAL INCOME

30 Total

31 Compensation of employees32 Wages and salaries33 Government and government enterprises . .34 Other "33 Supplement to wages and salaries36 Employer contributions for social insurance37 Other labor income38 Proprietors' income1

39 Business and professional1

40 Farm'

41 Rental income of persons2

42 Corporate profits1 „43 Profits before tax*44 Inventory valuation adjustment45 Capital consumption adjustment

46 Net interest

4,014.9

2,629.0372.2911.2

1,345.6

643.1631.8442.9153.2289.7188.8

11.314.6

-78.0370.9448.9

820.8355.2465.6

4,003.61,641.2

706.5934.6

1,968.3405.4

11.36.44.9

3,618.7

3,234.0

2,367.51,975.2

372.01,603.4

392.4204.8187.6

255.9225.6

30.2

9.2

282.3224.3-1 .759.7

319.0

4,140.3

2,807.5406.5943.6

1,457.3

665.9650.4433.9138.5295.4216.6

15.517.4

-104.4378.4482.8

871.2366.2505.0

4,224.71,697.9

725.3»72.6

2,118.3424.0

15.54.2

11.3

3,721.7

3,437.1

2,507.12,094.0

393.71,700.3

413.1217.0196.1

286.7250.3

36.4

12.4

298.9236.4

8.354.2

331.9

4,516.7

3,012.1421.9997.9

1,592.3

712.9673.7446.8139.5307.3226.9

39.240.7

-123.0428.0551.1

924.7382.0542.8

4,487.51,792.5

776.31,016.32,295.7

438.4

39.226.612.6

3,847.0

3,678.7

2,683.42,248.4

420.11,828.3

435.0227.1207.9

312.9270.043.0

18.4

310.4276.7-18 .0

51.7

353.6

4,484.2

2,992.2420.5995.3

1,576.4

698.5665.8438.2134.4303.8227.6

32.731.4

-122.2416.8539.0

915.7377.5538.2

4,451.51,774.6

767.11,007.52,276.2

433.4

32.724.38.4

3,(23.0

3,631.8

2,652.02,220.6

416.91,803.7

431.3225.0206.4

3089265.9

43.0

17.8

305.2273.7-20.0

51.5

348.1

4,568.0

3,058.2441.4

1,006.61,610.2

702.8688.3462.1143.0319.1226.2

14.517.8

-125.2440.4565.6

932.2386.3546.0

4,553.51,812.9

792.21,020.72,314.4

440.6

14.52.9

11.6

3,8*5.3

3,708.0

2,702.82,265.3

423.21,842.1

437.5228.2209.3

306.8271.5

35.2

18.1

322.0289.4-19.5

52.1

358.3

4,662.8

3,076.3422.0

1,012.41,641.9

764.9692.9464.1147.7316.3228.8

72.072.8

-125.7459.7585.4

947.3391.4555.9

4,590.71,849.4

808.71,040.72,363.9

449.5

72.050.521.6

3,923.0

3,802.0

2,769.92,324.8

429.21,895.6

445.1232.7212.4

326.0279.0

47.0

20.5

316.1281.9-18.2

52.4

369.5

4,724.5

3,128.1437.8

1,016.21,674.1

763.4698.1471.5140.1331.3226.6

65.349.4

-112.1487.8599.9

945.2377.7567.5

4,659.21,879.4

819.31,060.12,405.2

439.9

65.326.638.6

3,850.8

2,816.42,358.7

437.11,921.6

457.7243.1214.6

323.9279.244.7

20.5

316.2286.2-19.4

49.4

373.9

4,806.9

3,186.8446.9

1,030.31,709.6

756.5713.5485.4145.3340.1228.1

43.035.5

-90 .6501.1591.7

954.2375.2579.0

4,763.91,912.7

851.41,061.32,446.7

447.5

43.026.416.5

3,986.3

n.a.

2,872.62,408.7

443.01,965.7

463.9247.4216.5

322.6284.638.0

17.9

n.a.n.a.-29.8

47.9

382.1

1. With inventory valuation and capital consumption adjustments.2. With capital consumption adjustment.

3. For after-tax profits, dividends, and the like, see table 1.48.SOURCE. Survey of Current Business (Department of Commerce).

A52 Domestic Nonflnancial Statistics • September 1988

2.17 PERSONAL INCOME AND SAVING

Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.

Account 1985 1986' 1987'

1987

Q2 Q3 Q4

1988

Ql' Q2

PERSONAL INCOME AND SAVING

1 Total personal Income

2 Wage and salary disbursements3 Commodity-producing industries4 Manufacturing5 Distributive industries6 Service industries7 Government and government enterprises

8 Other labor income9 Proprietors' income1

10 Business and professional1

11 Farm' ,.12 Rental income of persons2

13 Dividends14 Personal interest income15 Transfer payments16 Old-age survivors, disability, and health insurance benefits

17 LESS: Personal contributions for social insurance

18 EQUALS: Personal income

19 LESS: Personal tax and nontax payments

20 EQUALS: Disposable personal income

21 LESS: Personal outlays

22 EQUALS: Personal saving

MEMO

Per capita (1982 dollars)23 Oross national product24 Personal consumption expenditures25 Disposable personal income26 Saving rate (percent)

GROSS SAVING

27 Groat saving

28 Gross private saving29 Personal saving30 Undistributed corporate profits'31 Corporate inventory valuation adjustment

Capital consumption allowances32 Corporate33 Noncorporate

34 Government surplus, or deficit ( - ) , national income andproduct accounts

35 Federal36 State and local

37 Gran Investment

38 Gross private domestic39 Net foreign

40 SMtbtfcal dUcrepancy

3,325.3

1,975.4608.9460.9473.2521.3372.0

187.6255.9225.6

30.29.2

78.7478.0489.8253.4

149.3

3,325.3

486.6

2,838,7

2,713.3

125.4

15,122.09,840.3

10,625.04.4

533.5

665.3125.4102.6-1 .7

268.6168.7

-131.8-196.9

65.1

S28.T

643.1-114.4

- 4 . g

3,531.1

2,094.0625.5473.1498.9575.9393.7

196.1286.7250.3

36.412.482.8

499.1521.1

269.3

161.1

3,531.1

511.4

3,019.6

2,898.0

121.7

15,398.010,158.010,929.0

4.0

537.2

681.6121.7104.1

8.3

282.4173.5

-144.4-205.6

61.2

S23.<

665.9-142.4

3,780.0

2,248.4649.8490.3531.7646.8420.1

207.9312.9270.0

43.018.488.6

527.0548.8

282.9

172.0

3,780.0

570.3

3,209.7

3,105.5

104.2

15,772.810,336.211,012.0

560.4

665.3104.281.1

-18.0

297.5182.5

-104.9-157.8

52.9

551.3

712.9-160.6

-S . I

3,736.1

2,220.6642.8484.6526.1634.8416.9

206.4308.9265.9

43.017.887.3

517.9547.8

282.8

170.5

3,736.1

582.0

3,154.1

3,084.7

69.5

15,700.210,335.110,889.0

542.4

625.069.578.5

-20.0

295.4181.6

-82.6-144.0

61.4

539.9

698.5-158.6

- 2 . 5

3,801.0

2,265.1652.8492.6536.8652.4423.0

209.3306.8271.5

35.218.189.9

533.0551.7

284.5

172.7

3,801.0

576.2

3,224.9

3,152.3

72.6

15,834.910,426.810,989.0

2.3

554.8

642.272.685.0

-19.5

299.7184.9

-85.5-138.3

52.9

S41.7

702.8-161.1

-15.1

3,906.8

2,325.1665.5501.3547.3682.8429.5

212.4326.0279.0

47.020.591.9

550.0556.8

286.5

175.9

3,906.8

591.0

3,315.8

3,171.8

144.0

16,031.810,346.111,145.0

4.3

603.4

714.1144.080.5

-18 .2

303.7185.8

-110.7-160.4

49.7

597.0

764.9-167.8

-6.4

3,951.4

2,358.7676.0509.6558.2687.4437.1

214.6323.9279.2

44.720.593.5

554.2576.3298.1

190.2

3,951.4

575.8

3,375.6

3,225.7

149.9

16,127.610,435.411,260.0

4.4

627.0

726.3149.978.1

-19.4

309.8188.5

-99.2-155.1

55.8

612.0

763.4-151.3

-J5 .0

4,017.2

2,408.7688.7517.1572.0705.0443.0

216.5322.6284.6

38.017.995.0

566.7583.0

300.0

193.4

4,017.2

600.6

3,416.5

3,285.9

130.6

n.a.n.a.

11,228.03.8

n.a.

n.a.130.6

n.a.-29.8

313.4189.8

n.a.n.a.n.a.

628.0

756.5-128.5

-15.3

1. With inventory valuation and capital consumption adjustments.2. With capital consumption adjustment.


Summary Statistics A53

3.10 U.S. INTERNATIONAL TRANSACTIONS Summary

Millions of dollars; quarterly data are seasonally adjusted except as noted.1

Item credits or debits 1985 1986 19871987

Ql Q3

1988

Ql'

1 Balance on current account2 Not seasonally adjusted . M3 Merchandise trade balance2

4 Merchandise exports5 Merchandise Imports6 Military transactions, net7 Investment income, net3

8 Other service transactions, net9 Remittances, pensions, and other transfers

10 U.S. government grants (excluding military)

11 Change in U.S. government asaets, other than officialreserve assets, net (increase, - )

-115,102 -138,827 -153,964

12 Change in U.S. official reserve assets (increase, - ) .13 Gold14 Special drawing rights (SDKs)15 Reserve position in International Monetary Fund.16 Foreign currencies

17 Change in U.S. private assets abroad (increase, - ) 3 .18 Bank-reported claims19 Nonbank-reported claims20 U.S. purchase of foreign securities, jiet21 U.S. direct investments abroad, net9

22 Change in foreign official assets in the United States(increase, +)

23 U.S. Treasury securities24 Other U.S. government obligations25 Other U.S. government liabilities4

26 Other U.S. liabilities reported by U.S. banks27 Other foreign official assets'

I private assets in the United States

2930313233

U.S. bank-reported liabilitiesU.S. nonbank-reported liabilitiesForeign private purchases of U.S. Treasury securities, netForeign purchases of other U.S. securities, net.Foreign direct investments in the United States, net9

34 Allocation of SDRs35 Discrepancy36 Owing to seasonal adjustments37 Statistical discrepancy in recorded data before seasonal

adjustment >

-122,148215,935

-338,083-3,43125,936

-449-3,786

-11,223

-2,829

-3,8580

-897908

-3.869

-25,949-1,323

923-7,481

-18,068

-1,196-838-301

767645

-1,469

131,09641,045

-36620,43350,96219,022

017,839

-144,547223,969

-368,516-4,37223,143

2,257-3,571

-11,738

-2,000

3120

-2461,500-942

-96,303-59,975

-4,220-4,297

-27,811

35,50734,364-1,214

2,0541,187-884

185,74679,783-2,906,

3,80970,96934,091

015,566

-160,280249,570

-409,850-2,36920,374

1,755-3,434

-10,011

1,162

9,1490

-5092,0707,588

-86,298-40,531

3,145-4,456

-44,456

44,96843,361

1,570-2,824

3,901-1,040

166,52187.7782,150

-7,59642,21341,976

018,461

MEMOChanges in official assets

38 U.S. official reserve assets (increase, - )39 Foreign official assets in the United States (increase, +)

excluding line 2540 Change in Organization of Petroleum Exporting Countries

official assets in the United States (part ofline 22above)

41 Transfers under military grant programs (excluded fromlines 4 , 6 , and 10 above)

17,839

-3,858

-1,963

-6,709

46

15,566

312

33,453

-9,327

101

18,461

9,149

47,792

-9,956

58

-37,624-33,032-39,871

56,791-96,662

-785,076-143-867

-2,100

67

..956

76606

1,274

9,04921,870

-491-1,639

-10,691

13,97712,193

- 6 2-1,337

3,543-360

19,122-6,100

1,696-2,82618,3737,979

0-6,547

4,141

-10,688

1,956

15,314

-2,801

8

-40,852-41.799-39,552

59,864-99,416

-1791,692

13-884

-2,241

-170

3,4190

-171335

3,255

-26,127-22,422

2 * 88-6,220

10,33211,083

256-1,309

615-313

40,32717,9611,570

-2,43115,9987,229

013,071

-2,615

15,686

3,419

11,641

-2,681

26

-41,967-47\330-39,665

64,902-104,567

-8511,067

87-855

-2,125

252

320

-210407

-165

-25,576-16,519

-215-972

-7,870

611842714

-287- 3 4

-624

71,04746,153

-116-2,83512,81915,026

0-4,399-4,658

259

32

898

-1,723

13

-33,523-31,803-41,192

68,013-109,205

-1,26112,539

479-828

-3,545

1,012

3,7410

-205722

3,225

-43,645-23,460

1,248-1,757

-19,676

20,04719,243

662108

-223257

36,02529,764

-1,000496

-4,97711,742

016,3423,138

13,204

3,741

19,939

-2,750

12

-39,751-34,937-35,945

74,672-110,617

-899-595

735-868

-2,283

-780

1,5030

155446901

8,16917,402

' -4,318-4,845

24,37227,568

-116-251

-1,996-833

3,504-15,994

7,0012,328

10.169

02,9843,925

-941

1,503

24,623

-1,331

15

1. Seasonal factors are not calculated for lines 6,10,12-16,18-20,22-34, and38-41.

2. Data are on an international accounts (IA) basis. Differs from the Censusbasis data, shown in table 3.11, for reasons of coverage and timing. Militaryexports are excluded from merchandise data and are included In line 6.

3. Includes reinvested earnings.

4. Primarily associated with military sales contracts and other transactionsarranged with or through foreign official agencies.

5. Consists of investments in U.S. corporate stocks and in debt securities ofprivate corporations and state and local governments.

NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business(Department of Commerce).

A54 International Statistics D September 1988

3.11 U.S. FOREIGN TRADE1

Millions of dollars; monthly data are not seasonally adjusted.

Item

1 EXPORTS of domestic and foreignmerchandise excluding grant-aidshipments, f.a.s. value

2 GENERAL IMPORTS includingmerchandise for immediateconsumption plus entries intobonded warehouses, c.i.f. value . . . .

3 Tradebalanee

1985

218,815

352,463

-133,648

1986

227,159

382,295

-155,137

1987

254,122

424,442

-170,320

1987

Nov.

23,279

36,739

-13,4*0

Dec.

24,314

37,340

-13,026

1988

Jan.

22,990

34,523

-11,533

Feb.

24,139

37,133

-12,994

Mar.

29,106

38,633

-9,528

Apr/

26,335

36,528

-10,193

May

27,268

37,972

-10,703

1. The Census basis data differ from merchandise trade data shown in table3.10, U.S. International Transactions Summary, for reasons of coverage andtiming. On the export side, the largest adjustment is the exclusion of military sales(which are combined with other military transactions and reported separately inthe "service account" in table 3.10, line 6). On the Import side, additions are madefor gold, ship purchases, imports of electricity from Canada, and other transac-

tions; military payments are excluded and shown separately as indicated above.As of Jan. I, 1987 census data are released 45 days after the end of the month.Total exports and the trade balance reflect adjustments for undocumented exportsto Canada.

SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"(Department of Commerce, Bureau of the Census).

3.12 U.S. RESERVE ASSETS


Type 1984 1985 1986

1987

Dec.

1988

Jan. Feb. Mar. Apr. May June"

Total.

2 Oold stock, including ExchangeStabilization Fund1

3 Special drawing rights2'3

4 Reserve position in InternationalMonetary Fund2

5 Foreign currencies4

34,934

11,096

5,641

11,541

6,656

43,18*

11,090

7,293

11,947

12,856

48,511

11,064

8,395

11,730

17,322

45,798

11,078

10,283

11,349

13,088

42,955

11,068

9,765

10,804

11,318

43,064

11,063

9,761

10,445

11,795

43,186

11,063

9,899

10,645

11,579

42,730

11,063

9,589

10,803

11,275

41,949

11,063

9,543

10,431

10,912

41,028

11,063

9,180

9,992

10,793

1. Oold held under earmark at Federal Reserve Banks for foreign and interna-tional accounts is not included in the gold stock of the United States; see table3.13. Oold stock is valued at $42.22 per fine troy ounce.

2. Beginning July 1974, the IMF adopted a technique for valuing the SDR basedon a weighted average of exchange rates for the currencies of member countries.From July 1974 through December 1980,16 currencies were used; from January1981,5 currencies have been used. The U.S. SDR holdings and reserve position

in the IMF also are valued on this basis beginning July 1974.3. Includes allocations by the International Monetary Fund of SDRs as follows:

$867 million on Jan. 1,1970; $717 million on Jan. 1,1971; $710 million on Jan. 1,1972; $1,139 million on Jan. I, 1979; $1,152 million on Jan. 1, 1980; and $1,093million on Jan. 1,1981; plus transactions in SDRs.

4. Valued at current market exchange rates.

3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS'


Assets

1 Deposits

Assets held In custody 22 U.S. Treasury securities3 Earmarked gold3

1984

267

118,00014,242

1985

480

121,00414,245

1986

287

155,83514,048

1987

Dec.

244

195,12613,919

1988

Jan.

355

206,67513,882

Feb.

343

215,30813,824

Mar.

534

222,40713,773

Apr.

215

224,72513,719

May

297

226,34113,654

June

381

223,12713,662

1. Excludes deposits and U.S. Treasury securities held for international andregional organizations.

2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketabJe U.S.Treasury securities payable in dollars and in foreign currencies.

3. Earmarked gold and the gold stock are valued at $42.22 per One troy ounce.Earmarked gold is gold held for foreign and international accounts and is notincluded in the (old stock of the United States.


3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1


Asset account 1984 1985 19861987

Nov. Dec. Jan. Feb. Mar. Apr.

45 Total, all currendo . .

46 Claims on United States47 Parent bank48 Other banks in United States .49 Nonbanks50 Claims on foreigners51 Other branches of parent bank52 Banks53 Public borrowers54 Nonbank foreigners

55 Other assets

56 Total payable In U.S. dollar!.

AH foreign countries

1 Total, all currencies

2 Claims on United States3 Parent bank4 Other banks in United States5 Nonbanks6 Claims on foreigners7 Other branches of parent bank8 Banks .7 .9 Public borrowers

to Nonbank foreigners

11 Other assets

12 Total payable in U.S. dollars

13 Claims on United States14 Parent bank15 Other banks in United States16 Nonbanks17 Claims on foreigners18 Other branches of parent bank19 Banks20 Public borrowers21 Nonbank foreigners

22 Other assets

23 Total, aU currencies


33 Other assets

34 Total payable In U.S. dollars


44 Other assets

453,656

113,39378,10913,66421,620320,16295,184100,39723,343101,238

20,101

350,636

111,42677,22913,50020,697

228,60078,74676,94017,62655,288

10,610

144,315

27,67521,862

1,4294,384

111,82837,95337,4435,334

31,098

4,882

112,80926,86821,495

1,3634,010

82,94533,60726,8054,030

18,503

2,996

146,811

77,29649,44911,54416,30365,59817,66130,2466,089

11,602

3,917

141,542

458,012

119,70687,20113,05719,448

315,67691,399

102,96023,47897,839

22,630

336,520

116,63885,97112,45418,213

210,12972,72771,86817,26048,274

9,753

456,628

114,56383,49213,68517,386

312,95596281105,23723,70687,731

29,110

317,487

110,62082,08212,83015,708

195,06372,19766,42116,70839,737

11,804

525,894

140,425102,81416,70120,910346,819116,509115,59122,38592,334

38,650

353,973

133,731100,12314,63218,976

203,963«5,54865,77114,95237,692

15,379

518,604

138,034105,84516,41615,773

342,506122,155108,85621,828

89,667

38,064

3*0,106132,023103,25114,65714,115

202,42788,28463,70614,73035,707

15,656

503,254

131,37695,48214,91020,984334,074115,275108,16121,329

89,309

37,804

335,313124,89392,46613,43918,988

196,15484,46861,35914,72035,607

14,266

495,003

131,01294,34815,008'21,656'326,653111,671105,60421,33188,047

37,338

330,726

124,78691,27113,88619,629

190,92283,06358,18114,64535,033

15,018

502,398

135,33999,04114,50721,791328,328'108,972106,93621,748'90,672

38,731'

333,874

128,77095,77613,19019,804

190,75881,69258,27414,85335,939

14,346

488,939

139,186102,95713,34222,887314,338103,090101,22620,82789,195

35,415

327,736

133,299100,32012,32820,651179,71275,65454,57814,40735,073

14,725

United Kingdom

148,599

33,15726,970

1,1065,081

110,21731,57639,2505,644

33.747

5,225

108,624

32,09226,568

1,0054,519

73,47526,01126,1393,999

17,3263,059

140,917

24,59919,0851,6123,902

109,50833,42239,4684,990

31,628

6.810

95,028

23,19318,5261,4753,192

68,13826,36123,2513,677

14,8493,697

167,726

35,39229,553

1,6944,145

121,48739,13841,6495,272

35,428

10,847

107,289

33,40928,685

1,4083,316

68,86429,16621,8333,472

14,3935,016

158,695

32,51827,350

1,2593,909

115,70039,90336,7354,752

34,310

10,477

109,574

30,43926,304

1,0443,091

64,56028,63519,1883,313

13,4245,575

160,144

32,46426,923

1,5583,983

118,40739,70239,6974,639

34,369

9,373

102,148

30,15625,854

1,1323,170

67,45829,33620,8143,313

13,9954,534

157,634

32,86927,484

1,5273,858

115,48938,07738,6544,613

34,145

9,276

101,642

30,97126,565

1,2733,133

66,31329,81319,5163,347

13,6374,358

155,657

29,40624,512

1,1113,783

117,15034,27840,4225,312

37,138

9,101

95,97227,21323,217

9453,051

64,42226,81219,8313,864

13,915

4,337

152,592

31,61826,155

1,0134,450

112,26133,01938,7904,914

35,538

8,713

93,21429,55525,137

7813,637

59,43424,86718,0653,412

13,090

4,225

Bahamas and Caymans

142,055

74,86450,55311.20413,10763,88219,04228.1926,45810,190

3,309

136,794

142,592

78,04854,57511,15612,31760,00517,29627,4767,051

8,182

4,539

136,813

155,100

82,36652,75913,98015,62767,65818,90533,4797,196

8,078

5,076

144,525

160,321

85,31860,04814,27710,99370,16221,27733,7517,428

7,706

4,841

151,434

148,718

79,89351,24912,47216,17263,46919,80229,3407,257

7,070

5,356

141,135

143,630

78,01548,40212,662'16,951'60,11118,48627,6877,063

6,875

5,504

135,916

153,254

85,84756,33012,40017,11761,95219,36828,6376,891

7,056

5,455

145,050

152,930

88,29359,24011,48017,57358,80817.79026,6906,8497,479

5,829

145,398

492,844

141,789104,29914,62422,866315,493102,931103,42921,18187,952

35,562

334,112

136,077101,57813,59920,900182,98176,13657,10214,34235,401

15,054

156,184

32,83227,5061,3603.966

114,64233,84939,8835177

35,733

8,710

97,188

30,73626,6081,0683,060

62,01825,44819,5553|25213,7634,434

156,353

90,89660,41912,48917,98859,37418,46327,0196,9556,937

6.083

148,545

1. Beginning with June 1984 data, reported claims held by foreign brancheshave been reduced by an increase in the reporting threshold for "shell" branches

from $50 million to $150 million equivalent in total assets, the threshold nowapplicable to all reporting branches.


3.14 Continued

Liability account 1984 1985 19861987

Nov. Dec.

1988

Jan. Feb. Mar. Apr. M a /

All foreign countries


58 Negotiable CDs59 To United States60 Parent bank61 Other banks in United States62 Nonbanks

63 To foreigners64 Other Drenches of parent bank65 Banks66 Official institutions67 Nonbank foreigners68 Other liabilities

69 Total payable in U.S. dollars

TO Negotiable CDs71 To United States72 Parent bank73 Other banks in United States74 Nonbanks

75 To foreigners76 Other Drenches of parent bank77 Banks78 Official institutions79 Nonbank foreigners80 Other liabilities



87 To foreigners88 Other branches of parent bank89 Banks90 Official institutions91 Nonbank foreigners92 Other liabilities

93 Total payable In U.S. doflars . . .



105 Total, all currenda



117 Total payable In U.S. dollar, . . .

453,656

37,725147,58378,73918,40950,435

247,90793,90978,20320,28155,51420,441

367,145

35,227143,57176,25417,93549,382

178,26077,77045,12315,77339,59410,087

144,385

34,41325,25014,6513,1257,474

77,42421,63130,43610,15415,2037,298

117,4*7

33,07024,10514,3392,9806,786

56,92318,29418,3568,87111,4023,399

146,811

615102,95547,16213,93841,855

40,32016,78212,4052,0549,0792,921

143,581

451,012

34,607156,28184,65716,89454,730

245,93989,52976,81419,52060,07621,185

353,712

31,063150,90581,63116,26453,010

163,58371,07837,36514,35940,7818,161

456,<28

31,629152,46583,39415,64653,425

253,77595,14677,80917,83562,98518,759

336,406

28,466144,48379,30514,60950,569

156,80671,18133,85012,37139,4046,651

515,894

34,690156,20683,8941847153,441

312,596117,03697,49021,87376,19722,402

3*1,698

30,075143,18877,77517,19748,216

179,52684,63038,93214,16141,8038,909

518,(04

30,929161,39087,60620,55953,225

304,790124,60187,26119,56473,36421,495

361,438

26,768148,44281,78319,15547,504

177,71190,46935,06512,40939,7688,517

503,254

29,277150,67678,59015,80156,285

302,042116,43489,55221,13074,92621,259

344,805

24,785139,18573,06414,43351,688

172,28584,29833,31512,73641,9368,550

495,003

31,158149,40285,14214,23750,023

293,360111,94988,40020,37372,63821,083

341,536'

26,386138,73779,36312,91846,456

167,623'82,99632,27812,07140,278'8,790

502,398

31,854157,06391,62814,80650,629

290,064109,07188,25718,60874,12823,417

344,395

26,869144,98384,80113,50146,681

163,27581,07330,68810,48941,0259,268

488,939

31,585155,37185,59816,22453,549

281,172105,15885,09718,00672,91120,811

337,122

26,596144,77379,91615,01349,844

156,85876,71829,92410,53939,6778,895

United Kingdom

148,599

31,26029,42219,3302,9747,118

78,52523,38928,5819,676

16,8799,392

112,697

29,33727,75618,9562,8265,974

51,98018,49314,3447,661

11,4823,624

140,917

27,78124,65714,4692,6497,539

79,49825,03630,8776,836

16,7498,981

99,707

26,16922,07514,0212,3255,729

48,13817,95115,2034,934

10,0503,325

167,726

30,47524,96114,0182,1038,840

101,68630,72737,69012,00021,26910,604

MMU

27,99919,80012,7921,7895,219

56,44320,82617,0247,970

10,6234,239

158,695

26,98823,47013,2231,7408,507

98,68933,07834,29011,01520,3069.548

102,558

24,92617,75212,0261,5124,214

55,91922,33415,5807,53010,4753,953

160,244

25,18425,20914,1771,5969,436

100,00133,34434,82011,57120,2669,850

105,138

22,87520,79913,3071,3986,094

57,62022,87016,1197,993

10,6383,844

157,634

26,78626,38215,5271,6159,240

94,23530,35033,52011,04819,31710,231

105,162

24,28123,01914,6261,4016,992

53,44421,75314,4017,045

10,2454,418

155,657

27,27922,72514,5061,7686,451

95,04930,21133,3169,624

21,89810,604

n,m24,71619,11613,6221,5563,938

50,59021,29213,1065,181

11,0114,560

152,592

27,09023,86814,9041.5087,456

92,21927,38332,97010,18121,6859,415

96,532

24,39220,31013,9471,3065,057

47,58918,06012,8895,918

10,7224,241

Bahamas and Caymans

142,055

610104,55645,55412,77846,224

35,05314,07510,669

1,7768,5331,836

138,322

142,592

847106,08149,48111,71544,885

34,40012,6318,6172,719

10,4331,264

138,774

155,100

861108,03950,03015,20442,805

44,39817,81212,6112,064

11,9111.802

146,485

160,321

885113,95053,23917,22443,487

43,81519,18510,769

1,50412,3571,671

152,917

148,718

851105,14746,59413,01745,536

40,82218,6299,3441,377

11,4721,898

141,750

143,630

94099,82148,97611,45539,390

41,23418,6049,8251,179

11,6261,635

136,636

153,254

1,069110,45155,98111,82942,641

40,03817,2609,4041,873

11,5011.696

145,366

152,930

1,038109,19950,56813,67644,955

40,95319,4209,1621,164

11,2071,740

146,134

492,844

32,175161,99786,95815,37059,669

277,111104,66782,51217,70072,23221,561

341,729

27,233149,57180,39213,98055,199

155,52476,92028,72510,02839,8519,401

156,184

27,65927,14515,5182,4089,219

91,99528,74331,9959,672

21,5859,385

99,37*

24,99422,40514,1342,1846,087

47,96918,90212,8605,47010,7374,010

156,353

1,0%112,60551,73511,74149,129

40,36918,9099,0801,053

11,3272,283

148,923


3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONSMillions of dollars, end of period

Item 1985 1986

1987r

NOV. Dec,

1988'

Jan. Feb. Mar. Apr. May'

1 Total1

By type ,2 Liabilities reported by banks in the, United States 2 . .3 U.S. Treasury bills and certificates3

U.S. Treasury bonds and notes4 Marketable5 Nonmarketable4

6 V.S. securities other than U.S. Treasury securities9.

By area7 Western Europe1

8 Canada9 Latin America and Caribbean

10 Asia11 Africa ,12 Other countries6 . . . . . ,

178,380

26,73453,252

77,1543,550

17,690

74,4471,315

11,14886,448

1,8243,199

211,(34

27,92075,650

91,3681,300

15,596

88,6292,0048,417

105,8681,5035,412

2M,O8»

34,26882,542

120,762300

16,217

117,6284,8848,924

116,4261,5624,665

259,517

31,83388,829

122,432300

16,123

124,6204,9618,328

116,0601,4024,147

M6.9Z5

32,52890,635

127,550300

15,912

127,7536,1827,950

119,1391,4584,442

276,233

32,12193,407

134,719300

15,686

127,6146,8398,296

127,3041,4954,682

284,330

29,87995,624

142,865792

15,170

129,3767,9548,734

131,4231,5124,839

286,460

29,59694,974

145,940795

15,155

129,7048,3148.520

132,0161,4175,993

294,145

30,98896,604

150,870499

15,184

131,0449,0769,145

135,0801,4187,883

1. Includes the Bank for International Settlements.2. Principally demand deposits, time deposits, bankers acceptances, commer-

cial paper, negotiable time certificates of deposit, and borrowings under repur-chase agreements.

3. Includes nonmarketable certificates of indebtedness (including those payablein foreign currencies through 1974) and Treasury bills issued to official institutionsof foreign countries.

4. Excludes notes issued to foreign official nonreserve agencies. Includes

bonds and notes payable in foreign currencies.5. Debt securities of U.S. government corporations and federally sponsored

agencies, and U.S. corporate stocks and bonds.6. Includes countries in Oceania and Eastern Europe.NOTE. Based on Treasury Department data ana 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 Currencies1


Item 1984 1985 1986

1987'

June Sept. Dec.

1988

Mar.'

1 Banks' own liabilities2 Banks' own claims3 Deposits4 Other claims5 Claims of banks' domestic customers'

8,58611,9844,9986.986

569

15,36816,2948,4377,857

580

29.70226,18014,12912,0522,507

39,48734,20912,04322,166

923

46,80041,23914,53526,704

1,067

55,68850,48618,10932,377

551

55,87151,55617,70233,854

810

1. Data on claims exclude foreign currencies held by U.S. monetary author-ities.

2. Assets owned by customers of the reporting bank located in the United

StateB that represent claims on foreigners held by reporting banks for the accountsof the domestic customers.


3.17 LIABILITIES TO FOREIGNERSPayable in U.S. dollars


Reported by Banks in the United States

Holder and type of liability 1984 1985 1986

1987'

Nov. Dec.

1988

Jan.' Feb.' Mar. Apr. May'

1 AU foreigners

2 Banks' own liabilities3 Demand deposits4 TiraeTJeposits'5 Other*.6 Own foreign offices9

7 Banks' custody liabilities4

8 U.S. Treasury bills and certificates'9 Other negotiable and readily transferable

instruments'10 Other

11 NuuiNMetary international and regional

12 Banks' own liabilities13 Demand deposits14 Time deposits'


17 U.S. Treasury bills and certificates18 Other negotiable and readily transferable


20 Offidid Institutions*

21 Banks' own liabilities22 Demand deposits23 Time deposits1

24 Other1.


26 U.S. Treasury bills and certificates'27 Other negotiable and readily transferable


29 Banks*

30 Banks' own liabilities31 Unafflliated foreign banks32 Demand deposits33 Time deposits'34 Other1.35 Own foreign offices3


37 U.S. Treasury bills and certificates38 Other negotiable and readily transferable


40 Other foreigners

41 Banks' own liabilities42 Demand deposits43 Time deposits44 Other1.

45 Banks' custody liabilities'46 U.S. Treasury bills and certificates47 Other negotiable and readily transferable


49 MEMO: Negotiable time certificates of deposit incustody for foreigners

407,306

306,89819,571110,41326,268150,646

100,40876,368

18,7475,293

4,454

2,014254

1,267493

2,440916

1,5240

86,065

19,0391,8239,3747,842

67,02659,976

6,96684

248,893

225,36874,72210,55647,09517,071

150,646

23,52511,448

7,2364,841

67,894

60,4776,93852,678

861

7,4174,029

3,021367

10,476

435,716

341,07021,107117,27829,305173,381

94,65669,133

17,9647,558

5,821

2,62185

2,067469

3,2001,736

1,4640

79,9(5

20,8352,07710,9497,809

59,15053.252

5,82475

275,589

252,72379,34110,27149,51019,561

173,381

22,8669,832

6,0406,994

74,331

64,8928,673

54,7521,467

9,4394,314

4,636489

9,845

540,996

406,48523,789130,89142,705209,100

134,51190,398

15,41728,696

5,8*7

3,958199

2,0651,693

1,849259

1,5900

103,569

25,4272,26710,49712,663

78,14275,650

2,347145

351,745

310,166101,06610,30364,23226,531209,100

41,5799,9(4

5,16526,431

79,875

66,93411,01954,0971,818

12,9414,506

6.3152,120

7,496

605,014

457,63523,748147,10052,665

234,122

147,38196,534

16,81534,031

5,809

3,19574

1,0942,027

2,614747

1,81155

116,811

31,0761,820

13,70615,549

85,73582,542

2,993200

400,526

354,376120,25411,86276,59131,802

234,122

46,1509,480

5,58631,084

81,870

68,9889,992

55,7093,287

12,8823,764

6,4252,693

7,361

6M.903

46»,82922,718

148,40151,120

247,590

149,074101,743

16,79130,540

4,3(7

2,626249

1,538839

1,761265

1,4970

120,662

28,6981,94912,84313,906

91,96588,829

2,990146

414,152

371,471123,88010,91579,71033,256

247,590

42.6829,134

5,39228,156

79,701

67,0349,60554,3103,119

12,6663,515

6,9142,238

7,314

601,332

446,39120,740138,96452,694233,993

154,941103,861

16,72734,333

5,(75

4,05270

1,5832,398

1,823613

1,2100

123,163

29,9011,60511,91316,383

93,26290,635

2,442185

391,750

345,597111,6059,786

71,13030,6(9

233,993

46,1528,979

5,58031,594

80,544

66,8419,279

54,3383,224

13,7033,633

7,4952,575

7,647

605,301

446,23521,129140,17852,661232,268

159,066107,087

15,65036,328

8,640

82,4814,0742,011415

1.52.

125,527

29,2341,861

11,65415,719

96,29493,407

2,592295

344,040111,7739,759

71,70930,305

232,268

46,8089,526

4,43632,846

80,285

66,3329,43554,3342,563

13,9533,740

7,1023,112

7,370

607,023'

444,887'21,889'137,890'46,997'238,110'

162,136109,233

16,12136,783

6,033'

4,031'134

2,061'1,836

2,002635

1,35116

125,503'

26,928'2,021'11,749'13,158

98,57595,624

2,750201

395,463'

347,937'109,827'10,000'70,171'29,655'

238,110'

47,5269,597

4,62733,303

(0,024

65,9909,73453,9092,347

14,0343,378

7,3933,263

7,325

611,043

449,10720,777134,37045,567248,394

161,935107,881

16,01738,038

4,575

2,41267

3352,010

2,163587

1,56411

124,570

26,5361,66011,66613,209

98,03394,974

2,939120

401,843

353,842105,4499,438

68,25027,760

248,394

48,000

4,63734,474

(0,055

66,3179,612

54,1182,586

13,7393,430

6,8763,433

7,480

628,149

464,27823,259137,87647,230255,912

163,871108,803

16,59538,472

6,729

4,738695

1,9602,083

1,991132

1,8527

127,592

27,9792,340

12,36613,272

99,61396,604

2,775234

413,422

364,968109,05710,27169,87828,908

255,912

48,4548,872

4,45035,132

80,406

66,5939,953

53,6722,967

13,8133,196

7,5193,099

8,261

1. Excludes negotiable time certificates of deposit, which are included in"Other negotiable and readily transferable instruments."

2. Includes borrowing under repurchase agreements.3. U.S. banks: includes amounts due to own foreign branches and foreign

subsidiaries consolidated in "Consolidated Report of Condition" filed with bankregulatory agencies. Agencies, branches, and majority-owned subsidiaries offoreign banks: principally amounts due to head office or parent foreign bank, andforeign branches, agencies, or wholly owned subsidiaries of head office or parentforeign bank.

4. Financial claims on residents of the United States, other than long-term

securities, held by or through reporting banks.5. Includes nonmarketable certificates of indebtedness and Treasury bills

issued to official institutions of foreign countries.6. Principally bankers acceptances, commercial paper, and negotiable time

certificates of deposit.7. Principally the International Bank for Reconstruction and Development, and

the Inter-American and Asian Development Banks. Data exclude "holdings ofdollars" of the International Monetary Fund.

8. Foreign central banks, foreign central governments, and the Bank forInternational Settlements.

9. Excludes central banks, which are included in "Official institutions."

Bank-Reported Data A59

3.17—Continued

Area and country 1984 1983 1986

1987

Nov. Dec.'

1988


1 Total

2 Foreign countries

3 Europe4 Austria3 Belgium-Luxembourg6 Denmark7 Finland8 France9 Germany

10 Greece11 Italy12 Netherlands13 Norway14 Portugal13 Spain16 Sweden17 Switzerland18 Turke19 UniLl __..„20 Yugoslavia21 Other Western Europe1

22 U.S.S.R23 Other Eastern Europe2

24 Canada

23 Latin America and Caribbean26 Argentina27 Bahamas28 Bermuda29 Brazil30 British West Indies31 Chile32 Colombia33 Cuba34 Ecuador33 Guatemala36 Jamaica37 Mexico38 Netherlands Antilles39 Panama40 Peru41 Uruguay42 Venezuela43 Other

44 AsiaChina

43 Mainland46 Taiwan47 Hong Kong48 India49 Indonesia50 Israel51 Japan52 Korea53 Philippines54 Thailand , .55 Middle-East oil-exporting countries3.56 Other

57 Africa58 Egypt

60 S^hMtim'.'.'.'.'.'.'.','.'.'.'.'.'.'.'.'.'.'.'.'.'.61 Zaire62 Oil-exporting countries*63 Other

64 Other countries65 Australia66 AUother

67 Nonmonetary international and regionalorganizations

68 International1

69 Latin American regional70 Other regional6

407,306

401,852

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

12,3034,2206,9511,2661,394

10,5454,297

71,187

1,1534,9906,581

5071,0331,268

21,6401,7301,3831,257

16,80412,841

3,396647118328153

1,189961

5,6845,300

384

4,4543,747

587120

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

57,6572,7655,373

42,6742,0493,104

111,2391,071

12214,0604,8757,5141,1671,552

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

540,996

535,189

180,5561,1816,729

482580

22,8625,762

70010,8755,600

735699

2,407884

30,534454

85,334630

3,32680

702

26,345

210,3184,757

73,6192,9224,325

72,2632,0544,285

1,2361,123

13613,7454,9706,8861,1631,537

10,1715,119

108,831

1,47618,9029,393

6741,5471,892

47,4101,1411,8661,119

12,35211,058

4,02170692

27074

1,5191,360

5,1184,196

922

5,8074,6201,033

154

605,016"

599,207'

228,947"1,254

10,959"632'461

27,523'8,549"

71510,0166,4901,074

8582,616"2,882

30,167433

115,023'484'

8,184

591'

28,681214,299'

5,275'70,947'

2,2314,139"

78,233"2,219"4,308'

91,088'1,033'

15014,453'5,228'7,514'1,208'1,5269,088'5,650"

118,843'

1,43521,574'10,541

7011,6771,220"

52,7351,6061,2591,483

13,37911,232

4,0651,169

7524682

1,107'1,386

4,3723,711

661

5,8093,7241,478

608

618,903

614,516

234,651920

9,347760377

29,9547,047

68912,0735,0141,362

8012,6211,379

33,765703

116,717710

9,79831

582

30,084

220,3635,006

74,5902,3354,003

81,6752,210

1,0821,082

16014,4804,9727,41412751,5809,0485,234

121,401

1,16221,50310,196

5821,3991,292

54,4181,6371,0831,345

13,99412,788

3,9451,151

19420267

1,0141,316

4,0703,327

744

4,3872,7541,272

362

601,332'

595,457"

225,552'992

9,433'551'401

28,1987,701'

63811,2595,2721,196

7252,3591,393

31,932'674

111,845'541

9,68337

721

28,691

212,097'4902'

69,205'2,187'3,937'

78,5032,1223,947

81,1151,098

15015,0244,9877,3291,2351,6709,1745,502

121,245'

1,33622,878'

9,579571

1,4741,270

55,2211,7091,0351,433

12,50312,237'

3,758'1,142

7121489

9811,261

4,1143,319

795

5,8754,3011,181

393

605,301'

596,660'

226,517'964

9,832659369

28,8688,872

63911,0015,302

828780

2,4331,719

32,006'541'

112,207557

8,34049

549

25,967

212,731'5,092'

64,9642,0213,747'

82,6252,3613,897

91,1331,098

14815,1865,2316,9831,3281,7539,7295,426

122,973'

1,35223,88410,010'

8791,5831,333

56,3461,5021,0091,334

12,40811,311'

3,756'1,119"

6919486

1,047ll241

4,7173,814

903

8,6406,6001,505

536

607,023"

600,990"

213,023'958'

8,804930405

28,4496,594'

65610,0765,399

917877

2,6181,836

31,815616

101,590"550

9,244'66

623

27,330"

222,136'5,101

70,266'2,214'4,074

88,344'2,3143,833

1,1691,182

20815,7835,207'4,3061,3641,7639,4115,591

129,265'

1,56224,00510,011

659"1,5471,400

60,3341,5931,0951,189

12,73513,135

4,0341,099

7538781

1,0621,330

5,2034,1541,048

6,033'4,330'1,305

397

611,043

218,4971,1779,6241,034

50427,040

6,857656

10,0405,1341,101

9172,4451,712

30,690518

109,447566

8,30644

686

27,030

225,7495,307

69,9202,4023,992

92,6312 2513,843

131,1741,209

20915,3473,3454,0391,4241,7439,5645,315

125,624

1,78923,9829,631

6751,0651,292

58,5671,5741,0151,181

12,64612,208

3,8781,218

6819582

1,0081,307

5,6894,885

804

4,5752,6911,528

356

628,149

621,420

228,0021,0909,8931,164

47828,219

6,247731

9,2855,7571,239

9102,8392,280

32,505628

115,439586

7,968136608

27,580

229,3775,219

74,0052,9274,762

90,3212^564,395

91,2061,191

15215,8665,3484,0061,4221,7159,2555,221

125,544

1,92123,87410,209

6191,0161,190

57,3892,057

9751,448

12,42012,426

4,0541,196

6526663

1,0441,419

6,8625,943

919

6,7294,7951,727

207

1. Includes the Bank for International Settlements and Eastern Europeancountries that are not listed in line 23.

2. Comprises Bulgaria, Czechoslovakia, the German Democratic Republic,Hungary, Poland, and Romania.

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, andUnited Arab Emirates (Trucial Sutes).

4. Comprises Algeria, Gabon, Libya, and Nigeria.3. Excludes "holdings of dollars" of the International Monetary Fund.6. Asian, African, Middle Eastern, and European regional organizations,

except the Bank for International Settlements, which is included in "OtherWestern Europe."

A60 Interaational Statistics D September 1988

3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United StatesPayable in U.S. Dollars


Area and country 1984 1983 19861987

Nov. Dec.

1988

Jan. Feb. Mar.' Apr. May"

1 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 Yugoslavia ,21 Other Western Europe1

22 U.S.S.R ,23 Other Eastern Europe2

24 Canada

25 Latin America and Caribbean26 Argentina27 Bahamas28 Bermuda2» Brazil30 British West Indies31 Chile32 Colombia33 Cuba34 Ecuador .,.35 Guatemala3

36 Jamaica'37 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 East oil-exporting countries4

56 OtherAsia

57 Africa58 Egypt59 Morocco60 South Africa61 Zaire „62 Oil-exporting countries9

63 Other

64 Other countries65 Australia66 All other

67 Nonmonetary i:organization:

400,162

399,3*3

99,014433

4,794648898

9,1571,306

8179,1191,356

6751.2432,8842.2302,1231,130

56,1851,886

596142

1,389

16,109

207,86211,05058,009

59226,31538,2056,8393,499

02,420

158252

34,8851,3507,7072,3841,088

11,0172,091

66,316

7101,8497,293

425724

2,08829,0669,2852,5551,1255,0446,152

6,615728583

2,79518

8421,649

3,4472,769

678

800

401,608

400,377

106,413598

5,772706823

9,1241,267

9918,8481258

7061,0581,9082,2193,1711,200

62,5661,964

998130

1,107

16,482

202,67411,46258,238

49925,28338,8816,6033,249

02,390

194224

31,7991,3406,6451,947

96010,8712,067

66,212

6391,5356,797

430698

1,99131,2499,2262,224

8454,2986,260

5,407721575

1,94220

6301,520

3,3902,413

978

1,030

444,745

441,724

107,823728

7,498688987

11,3561,816

6489,0433,296

672739

1,4921,9643,3521,543

58,3351,835

539345948

21,006

208,82512,09159,342

41825,71646,2846,5582,821

02,439

140198

30,6981,0415,4361,661

94011,1081,936

96,126

7872,6818,307

321723

1,63459,6747,1822,217

5784,1227.901

4,650567598J8694

1,213

3,2941,9491,345

3,021

461,787'

454,617'

107,961'927

9,551881

1,03013,5121,557

4527,296'3,813

938545

2,0322,6402,8801,566

54,65?1,697

662437892

23,376'

213,144'12,070'61,561'

33126,011'50,289*6,4292,730

02,334

145184

30,1011,1134,6851,459

975

1,785'

100,267'

8704,7847,318'

502601

1,28^64,7674,9822.040

4395,1577,524

4,668526585

IS903

1,123

3,2012,0931,109

7,170

460,261'

456.85T

102,324'793

9,382'717'

1,01013,475'2,061'

461'7,4672,619

934477

1.8492,2692,689'1.681'

50,839'1,700

66C389852

25,284'

214,807'11.990'64,744'

474'25,879'49,944'6,305'2,74c

2,286144188

29,534'980

4,7391,323

96810,834'1,735'

106,472'

9684,5778,216'

510580

1,36369,113'5,094'2,069

8,633'

4,742521542

1.507

1,0031,153

3,2282,1891,039

3,404'

443,89T

441,191'

97,437'762

9,626'852876

11,680-2,195'

576-6,5082,902

842471

1,6282,1062i&2,i&1,637

48,753'1,694

578386795

23,457'

208,046'12,03760,879'

375'25,932'

2,7090

2,339134202

29,1391,0094,3041,316

96110,753'1,753

105,025'

8863,8777,593'

495566'

1,282'71,229'4,943'1,961

520-3,5678,106'

4,807513491

2,419'1428

991

2,700'

442,204'

439,980'

100,441'800

9,793'746835

12,268'1,927'

711'6,164'2,879

746'499

1,965'2,2743,0861,660

50,493'1,702

725380790

21,930'

203,500'11,977'57,415'

31125,905'47,34Or

6,2602,668

02,238

140191

29,2171,1463,8181,336

95510,872'1,710

106,870'

8873,8137,948'

348632

1,21173,215'4,7771,966

521'3,454'7,897'

4,865469490

1,46182

1,0861,276

2,375'1,430

945'

2,224

442,486

440,360

94,574846

8,254874729

12,2261,881

6966,4532,780

627425

1,7612,2292,2371,593

47,4301,658

747328802

21,155

209,10312,22658,264

1,47125,99352,5296,0992,652

02,239

149201

27,9741,1593,1081,277

92911,0051,831

108,148

1,0963,5548,473

363645

1,23872,7975,0112,074

5413,5388,616

4,881483487

1,45846

1,1421,265

2,4991,4811,019

2,126

431,300

430,338

448,506

447,450

93,432895

8,787614993

10,7911,790

5136,2112,868

650439

1,7652,3492,4521,733

47,1351,619

573377876

22,047

199,45012,29154,620

66926,11647,4486,1352,717

2,881141212

27,2201,3042,7491,283

91310,9441,805

108,326

1,1403,8076,336

342643

1,28475,2724,7691,958

5163,9238,136

4,865473493

1,43847

1,1371,276

2,2181,363

855

100,247867

8,726632

1,10612,0631,894

5586,5992,766

886400

1,9112,4803,0931,543

51,2461,586

593339961

23,670

202,39812,33358,129

1,23526,10447,5755,9983,082

r2,197

149177

26,6871,4342,5861,277

88010,8331,720

113,630

8413,8058,306

307631

1,25978,3305,0412,012

5963,5418,760

5,092503483

1,49642

1,2441,324

2,4131,4051,008

962 1,056

1. Includes the Bank for International SetUements. Beginning April 1978, alsoincludes Eastern European countries not listed in line 23.

2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the GermanDemocratic Republic, Hungary, Poland, and Romania.

3. Included In "Other Latin America and Caribbean" through March 1978.

4. Comprises Bahrein, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, andUnited Arab Emirates (Trucial States).

5. Comprises Algeria, Gabon, Libya, and Nigeria.6. Excludes the Bank for International Settlements, which is included in

"Other Western Europe."

Bank-Reported Data A61

3.19 BANKS' OWN AND DOMESTIC CUSTOMERS1 CLAIMS ON FOREIGNERS Reported by Banks in theUnited States'Payable in U.S. Dollars


Type of claim

1 Total

2 Banks' own claims on foreigners3 Foreign public borrowers4 Own foreign offices5 UnafHliated foreign banks6 Deposits7 Other . . .8 All other foreigners

9 Claims of banks' domestic customers3 . . .10 Deposits11 Negotiable and readily transferable

instruments

12 Outstanding collections and other

13 MEMO: Customer liability onacceptances

Dollar deposits in banks abroad,reported by nonbanking businessenterprises in the United States3

1984

433,078

400,16262,237

156,216124.93249,22675,70656,777

32,9163,380

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

38,102

1986

478,650

444,74564,095

211,533122,94657,48465,46246,171

33,9054,413

24,044

5,448

25,706

41,396

198T

Nov.

461,78769,931

221,146127,34359,00768,33643,367

38,005

Dec.

497,977

460,26164,660

224,934127,71360,61867,09542,955

37,7163,650

26,696

7,370

23,828

38,090

1988'

Jan.

443,89063,766

217,579120,46755,43765,03042,079

34,258

Feb.

442,20462,687

218,758118,91855,80163,11741,842

39,504

Mar.

480.47S

442,48661,822

220,882118,28255,92762,35541,500

37,9895,011

24,499

8,479

18,769

37,561

Apr.

431,30060,717

210,880117,18455,80661,37842,519

43,115

May'

448,50661,238

223,962122,04855,96166,08741,258

n.a.

1. Data for banks' own claims are given on a monthly basis, but the data forclaims of banks' own domestic customers are available on a quarterly basis only.

2. U.S. banks: includes amounts due from own foreign branches and foreignsubsidiaries consolidated in "Consolidated Report of Condition" filed with bankregulatory agencies. Agencies, branches, and majority-owned subsidiaries offoreign banks: principally amounts due from head office or parent foreign bank,and foreign branches, agencies, or wholly owned subsidiaries of head office orparent foreign bank.

3. Assets owned by customers of the reporting bank located in the UnitedStates that represent claims on foreigners held by reporting banks for the accountof their domestic customers.

4. Principally negotiable time certificates of deposit and bankers acceptances.5. Includes demand and time deposits and negotiable and nonnegotiable

certificates of deposit denominated in U.S. dollars issued by banks abroad. Fordescription of changes in data reported by nonbanks, see July 1979 BULLETIN,p. 550.

3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United StatesPayable in U.S. Dollars


Maturity; by borrower and area 1984 1985 1986

1987'

June Sept. Dec.

1988

Mar.

1 Total

By borrower2 Maturity of 1 year or less1

3 Foreign public borrowers —4 All other foreigners5 Maturity over 1 year1

6 Foreign public borrowers —7 All other foreigners

By areaMaturity of 1 year or less'

8 Europe9 Canada

10 Latin America and Caribbean11 Asia12 Africa . . .13 AU other2 ,

Maturity of over I year1

14 Europe15 Canada16 Latin America and Caribbean17 Asia18 Afr ica . . .19 AU other2

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

227,903

160,82426,302

134,52267,07834,51232,567

56,5856,401

63,32827,9663,7532,791

7,6341,805

50,6744,5021,538

926

232,295

160,55524,842

135,71471,74039,10332,637

61,7845,895

56,27129,4572,8824,267

6,7371,925

56,7194,0431,539

777

237,608

168,23823,702

144,53769,37039,37229,997

69,1385,773

55,69131,1842,9893,463

6,4791,664

55,6093,4951,512

611

237,521

167,18726,914

140,27370,33439,47630,858

62,9415,890

58,38732,1612,8714,937

6,7531,579

55,0893,4971,6221,794

235,447

164,39625,986138,41071,05138,62632,425

59,1235,71256,41036,4362,8243,891

6,8312,661

53,7883,6491,7462,375

219,285

152,62724,273128,35466,65835,58131,076

51,5234,93855,68135,8222,6002,062

5,9712,242

51,5143,7132,1581,060

1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations.

A62 International Statistics • September 1988

3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks12


Area or country

1 Total

4 France

6 Italy.7 Netherlands

9 Switzerland10 United Kingdom11 Canada12 Japan

14 Austria

16 Finland17 Greece

19 Portugal20 Spain21 Turkey22 Other Western Europe23 South Africa24 Australia

25 OPEC countries3

28 Indonesia

Latin America32 Argentina33 Brazil34 Chile35 Colombia36 Mexico37 Peru38 Other Latin America

AsiaChina

39 Mainland ,40 Taiwan41 India42 Israel43 Korea (South)44 Malaysia

46 Thailand .. .47 Other Asia

Africa

49 Iviforocco50 Zaire.51 Other Africa4

53 U.S.S.R54 Yugoslavia55 Other

57 Bahamas58 Bermuda

60 Netherlands Antilles . •. .61 Panama

65 Others*

1984

405.7

148.18.7

14.19.0

10.13.93.23.9

60.37.9

27.1

33.61.62.21.92.93.01.46.51.91.74.56.0

24.92.29.33.37.92.3

111.8

8.726.37.02.9

25.72.23.9

.75.1.9

1.810.62.76.01.81.1

1.2.8.1

4.4.1

2.32.0

65.621.5

.911.83.46.7

.111.49.8

.0

17.3

1985

385.3

146.09.2

12.110.59.63.72.74.4

63.06.8

23.9

29.91.52.31.62.62.91.25.81.82.03.25.0

21.32.18.93.05.32.0

104.2

8.825.46.92.6

23.91.83.4

54,51.21.69,22.45,7141.0

1.0.91

1.9

4.1

2.21.8

62.921.2

.711.62.26.0

1L49.8

.0

16.9

1986

Mar.

3(5.6

152.88.2

13.611.28.33.52.85.3

67.46.0

26.5

31.11.52.51.92.52.71.06.42.12.43.14.9

20.42.28.73.34.51.8

102.9

8.825.67.02.3

23.91.73.3

64.31.21.39.22.25.6

.9

.9

.91

1.9

4.0

2.01.7

57.521.2

.79.22.24.3

.111.48.4

.0

16.8

June

389.7

160.39.0

15.111.59.33.42.95.6

69.27.0

27.2

30.71.72.41.62.63.01.16.42.5

3.14.2

20.62.18.83.05.01.7

102.0

9.225.57.12.2

24.01.63.3

63.7

1.68.72.05.71 1.8

.9

.9t

1.7

4.0

2.01.7

55.417.1

.412.22.44.2

sis9.3

.0

16.8

Sept.

3S9.5

159.08.5

14.712.58.13.92.74.8

70.36.2

27.4

29.51.72.31.72.32.71.06.72.11.63.14.1

20.02.28.72.84.61.7

100.0

9.325,47.22.0

24.01.53.3

.64.31.31.47.32.15.41.0.7

.7

.9,1

1.6

3.4.1

1.91.4

60.519.9

.412.81.95.1

10.59.7

.0

17.2

Dec.

389.6

158.08.4

13.811.79.04.62.45.8

71.95.4

25.0

26.21.71.71.42.32.4.8

5.82.01.43.13.5

19.62.28.62.54.51.7

99.7

9.525.37.12.1

24.01.53.1

44.91.21.56.72.15.4

9.7

.7

.91

1.6

3.2

1.71.4

63.222.3

.713.61.84.1

11.29.4

.0

19.8

1987

Mar.

394.8'

162.7'9.1'

13.312.78.64.43.05.8

73.6'5.3'

26.9

25.71.91.71.42.12.2

.86.31.71.43.03.2

20.C

8.5'2.45.41.6

99.8'

9.526.C7.22.0

23.91.43.0

95.51.71.46.21.95.4

9.6

.6

.91

.9

3.01

1.61.3

63.5'24.0

.811.4'1.75.4

.111.48.6

.0

20.1'

June

384.8'

m.v8.312.5

11.27.57.32.45.7

71.9'4.8'

26.3

25.21.81.51.42.02.1.8

6.11.71.53.03.1

18.8'2.18.4'2.24.41.7

100.1'

9.525.C7.21.9

25.31.31.9

66.61.71.35.61.75.4

8.7

.6

.91

1.1

3.33

1.71.3

61.2'20.3'

.613.0'1.35.2

.112.58.2'

.0

18.1'

Sept.

386.r

155.6'8.2

13.710.56.64.82.65.4

72.1'4.7'

27.0

25.91.91.61.41.92.0

.87.41.51.62.92.9

w.y2.08.2'2.04.91.7

97.2'

9.325.1'7.01.9

24.71.22.8

35.91.91.34.91.65.4

7.7

.6

.81

1.0

3.35

1.71.2

63.8'25.7'

.611.3'1.24.5

.112.38.1

.0

21.9'

Dec.

382.8'

161.3'10.113.812.67.34.12.15.6'

70.1'5.6

30.1

26.21.91.71.32.02.3

.58.01.61.5'2.92.5

17.1'1.98.<r1.93.61.7

97.4'

9.424.7'6.92.0

23.61.12.7'

38.21.91.05.0*1.55.1

7.7'

.5

.90

1.1

3.04

1.61.1

54.5'17.3

.612.4'1.24.5

\l'.¥7.0

.0

23.2'

1988

Mar.

371.0'

157.3'9.4

11.511.87.43.32.1

71.4'

30.3

26.1'1.61.41.02.32.0

.49.01.61.92.82.0

17.1'1.98.C1.93.71.7

94.4'

9.5'23.9'6.6'1.9

22.5'

2.8

,46.62.11.15.31.55.11.0.7

.5

.9

.11.0

2.9.3

1.7l.C

51.6'15.9

1.810.6'1.33.2

.111.37.4

.0

21.6'

1. The banking offices covered by these data are the U.S. offices and foreignbranches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.Offices not covered include (I) U.S. agencies and branches of foreign banks, and(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data areadjusted to exclude the claims on foreign branches held by a U.S. office or anotherforeign branch of the same banking institution. The data in this table combineforeign branch claims in table 3.14 (the sum of lines 7 through 10) with the claimsof U.S. offices in table 3.18 (excluding those held by agencies and branches offoreign banks and those constituting claims on own foreign branches).

2. Beginning with June 1984 data, reported claims held by foreign brancheshave been reduced by an increase in the reporting threshold for "shell" branches

from $50 million to $150 million equivalent in total assets, the threshold nowapplicable to all reporting branches.

3. This group comprises the Organization of Petroleum Exporting Countriesshown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain andOman (not formally members of OPEC).

4. Excludes Liberia.5. Includes Canal Zone beginning December 1979.6. Foreign branch claims only.7. Includes New Zealand, Liberia, and international and regional organiza-

tions.

Nonbank-Reported Data A63

3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in theUnited States1


Type, and area or country 1984 1985

19871986'

Mar. June Sept/ Dec.'

1988

Mar."

1 Total

2 Payable in dollars3 Payable in foreign currencies

4 Financial liabilities5 Payable in dollars6 Payable in foreign currencies

7 Commercial liabilities8 Trade payables9 Advance receipts and other liabilities . .


By area or countryFinancial liabilities

12 Europe13 Belgium-Luxembourg14 France15 Germany16 Netherlands17 Switzerland18 United Kingdom

19 Canada

20 Latin America and Caribbean21 Bahamas22 Bermuda23 Brazil24 British West Indies25 Mexico26 Venezuela

27 Asia28 Japan29 Middle Bast oil-exporting countries' .

30 Africa s

31 Oil-exporting countries3

32 Allother4

Commercial liabilities33 Europe34 Belgium-Luxembourg35 France36 Germany37 Netherlands38 Switzerland39 United Kingdom40 Canada

41 Latin America and Caribbean42 Bahamas43 Bermuda44 Brazil45 British West Indies46 Mexico47 Venezuela

48 Asia

50 Middle East oil-exporting countries2''

51 Africa ,,52 Oil-exporting countries3

53 All other4

19,357

26,3892,968

14,50912,5531,955

14,8497,0057,843

13,8361,013

6,728471995489590569

3,297

863

5,0861,926

1335

2,103367137

1,7771,209155

140

41

4,00148438622245257

1,095

1,975

1,8717

11412432

586636

5,2851,2562,372

233

1,128

27,825

24,2963,529

13,60011,2572,343

14,2256,6857,540

13,0391,186

7,700349857376861610

4,305

839

3,1841,123

291,843

153

1,8151,198

82

120

50

1,449

1,08812775844430212

6,0461,7992,829

587238

982

25,779

21,9803,800

12,3129,8272,485

13,4676,4627,004

12,1531,314

8,079270661368704646

5,140

399

1,961614432

1,163220

1,8051,398

67

4,07462453607364379976

4,447101352714424387

1,341

1,405

924321566149217216

5,0912,0521,679

619197980

27,3«r

23,410'4,158'

13,183'10,446'2,737

14,386'7,073'7,313'

12,964'1,422'

8,434'232758463693663

5,365'

431

2,366669026

1,545300

1,8821,480

31

67

If9356^484

1,3091,407'

'•'if325r8293'189'223'

5,814'2,4681,943'

520170

1,019

29,019'

24,565'4,454'

14,096'11,197'2,899

14,923'7,286'7,637'

13,368'1,555'

9,713'257822402669655

6,646'

441

1,744398022

1,223292

2,1311J51

7

0

66

4,966'111423'585'324'557

1,380

1,371'

1,069'

2&8867'

214'203

smv2,481'l!867'524166

1,074'

2S,<69

24,1414,528

13,03410,0802,954

15,6357,548

14,0611,574

9,298230615505641685

6,357

397

96128002258017

2.3001,830

7

0

76

r,399

1,082222524047231176

6,5112,4222,104

372151

1,119

27,«41

22,3045,337

11,6258,1483,477

16,0167,4258,591

14,1571,859

7,845202415583

1,014493

4,946

400

847278025476130

2,4292,042

100

4,95156437674336556

1,473

5,626125431916421559

1,668

1,301

865191684619189162

6,5732,5801,964

574135

1,078

30,052

23,6036,448

13,7849,2444,540

16,2687,2409,028

14,3591,909

9,724214365585

1,013760

6,606

464

1,25226400

92414

2,258>.«§

53

80

5,730144441816483529

1,796

1,402

85717

299591116177

6,5352,5161,724

551133

1,192

1. For a description of the changes in the International Statistics tables, seeJuly 1979 BULLETIN, p. 550.

2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, andUnited Arab Emirates (Trucial States).

3. Comprises Algeria, Gabon, Libya, and Nigeria.4. Includes nonmonetary international and regional organizations.5. Revisions include a reclassiflcation of transactions, which also affects the

totals for Asia and the grand totals.


3.23 CLAIMS ON UN AFFILIATED FOREIGNERSUnited States'


Reported by Nonbanking Business Enterprises in the

Type, and area or country

1 Total


By type

5 Deposits

7 Payable in foreign currencies8 Other financial claims . . . .9 Payable in dollars

10 Payable in foreign currencies

11 Commercial claims12 Trade receivables


By area or countryFinancial claims

17 Belgium-Luxembourg18 France19 Germany .20 Netherlands21 Switzerland .22 United Kingdom

23 Canada

24 Latin America and Caribbean

26 Bermuda27 Brazil28 British West Indies29 Mexico30 Venezuela

31 Asia

34 Africa

36 All other*

Commercial claims37 Europe38 Belgium-Luxembourg39 France . . . . .40 Germany41 Netherlands42 Switzerland43 United Kingdom

44 Canada

46 Bahamas

48 Brazil49 British West Indies50 Mexico51 Venezuela ,

52 Asia53 Japan54 Middle East oil-exporting countries2

55 Africa56 Oil-exporting countries

57 All other4

1984

29,901

27,3042,597

19,25414,62114,202

4204,6333,1901,442

10,6469,1771,470

9,912735

5,76215

1262246666

4,864

3,988

8,2163,306

6100

4,043215125

961353

13

21085

117

3,801165440374335271

1,063

1,021

2,0528

115214

7583206

3,0731,191

668

470134

229

1985

28,876

26,5742,302

18,89115,52614,911

6153,3642,3301,035

9,9868,6961,290

9,333652

6,92910

18422316174

6,007

3,260

7,8462,698' 6

784,571

18048

731475

10329

21

3,533175426346284284S98

1,023

1,7531393

2066

510157

2,9821,016

638

437130

257

1986

33,3»»r

31,031'2,367

23,42417,28316,726

5576,1414,7921,349

9,975'8,783'1,192

9,513'462'

8,82741

138111151185

7,957

3,965

9,2092,628

673

6,07817421

1,316999

8528

22

3,708'133414'444'164'217999'

934'

1,857'28

193'234'

39'412'237'

2,755'881563'

soy139'

222

1987'

Mar.

34,094

31,4462,649

24,23516,95516,112

8427,2805,9371,343

9,8598,8031,056

9,397463

9,42115

18116313277

8,500

3,828

9,5743,968

715,157

16420

1,188931

8419

140

3,690145419447154196

1,072

977

1,81811

18021625

451173

2,703927525

432141

240

June

31,628

28,6862,941

21,73614,68713,4821,2057,0485,7731,275

9,8928,8491,043

9,431461

9,9756

16992

14098

9,271

3,344

7,5542,589

6103

4,42516720

789452

6

589

16

3,845137439526172187

1,074

1,046

1,72814

169202

12346203

2,642952455

378123

255

Sept.

31,405

28,8802,525

21,06815,7%14,919

8775,2714,1511,120

10,3389,385

953

9,810528

9,47526

17199

15744

8,783

2,895

7,5023,328

2102

3,68717318

1,105737

10

7114

20

4,115169416545190206

1,227

1,049

1,70912

14323020

368192

2,7961,026

434

407124

262

Dec.

30,055

26,9653,089

19,57113,67312,2461,4265,8994,7901,109

10,4839,4761,007

9,929554

9,0666

35969

28276

8,040

2,796

6,7571,865

534,378

17219

830550

10

65

58

4,116177593555132185

1,086

927

1,90719

15922625

363297

2,8921,150

450

400144

240

1988

Mar."

30,351

28,3761,975

19,60912,25111,700

5517,3586,3061,051

10,7439,6941,049

10,370373

9,47115

32780

33453

8,416

2,840

6,3832,260

4386

3,46115335

841672

8

53

21

4,132193484598149173

1,086

1,159

1,94014

152215

16372319

2,8671,105

402

418154

227

1. For a description of the changes in the International Statistics tables, seeJuly 1979 BULLETIN, p. 550.


3. Comprises Algeria, Gabon, Libya, and Nigeria.4. Includes nonmonetary international and regional organizations.

Securities Holdings and Transactions A65

3.24 FOREIGN TRANSACTIONS IN SECURITIES

Millions of dollars

Transactions, and area or country 1986 1987r

1988

Jan.-May

1987

Nov. Dec. Jan.

1988

Feb. Mar. Apr. May'

U.S. corporate securities

STOCKS

1 Foreign purchases

2 Foreign sales

3 Net purchase., or sales ( - ) . .

4 Far*t(n countries

5 Europe6 France7 Germany8 Netherlands9 Switzerland

10 United Kingdom11 Canada12 Latin America and Caribbean13 Middle East"14 Other Asia15 Africa16 Other countries17 NoHinomtarv international and

region*! organization

BONDS 2

18 Foreign purchases

19 Foreign sales

20 Net purchases, or sales ( - )

21 Foreign countries

22 Europe23 France24 Germany23 Netherlands26 Switzerland27 United Kingdom28 Canada29 Latin America and Caribbean .30 Middle East'31 Other Asia32 Africa33 Other countries34 Nonmonetery international and

35 Stocks, net purchases, or sales ( - )36 Foreign purchases37 Foreign sales

38 Bonds, net purchases, or sales ( - )39 Foreign purchases40 Foreign sales

41 Net purchases, or sales ( - ) , of stocks and bonds

42 Foreign countries

43 Europe44 Canada45 Latin America and Caribbean46 Asia47 Africa48 Other countries

49 NonmoneMry International andregional organizations

148,114129,395

18,719

18,927

9,559459341936

1,5604,826816

3,031976

3,876297373

-208

123,16972,520

50,M8

49,101

39,313389

-251387

4,52933,900

5481,476

-2,96111,270

16139

(47

249,113232,849

16,264

16,313

1,928905-74892

-1,123630

1,0481,314

-1,36012,896

123365

-48

105,856.78,312

27,544

26,804

21,98919433269

1,58719,7701,2962,473-5481,638

16-61

740

76,00877,633

-1,625

-1,516

-2,233-308128

-440-674

-1,336-172358

-8601,276

3679

-109

32,80424,934

7,850

8,561

4,905110789253125

3,478282715

-1462,823-18

-712

13,62620,325

-6,699

-6,651

-5,948-541-183-169

-1,534'-3,356'

169-561-83-2811

-211

-48

5,7165,387'

32T

71'

408'-34-26-16-39

68-15-92-254-10-33

257

13,62716,630

-3,004

-2,943

-2,329-393-149

34'-743-959

HI-50-448-160-6-61

-61

6,807'5,432'

W7S'

97r

576'-1387'

-208'713'114292-16'-7'30

400

12,923'12,891

32'

64'

-222'-9667-72-110'-136147

-143104159'712

-32

5,0245,193

-169

458

2725161

-13-5633329

-22-1643470

-4

-627

16,344'16,720

-37«>-

-344'

-323'-29-3759

-252'-130-167261

-25170

-1885

-33

6,4536,039

414

532

26313118-16049

-29316-7688-22-8

-119

18,068'18,482'

-414'

-444'

-360'-7171

-223-32-331'-61'98'

-788'577584

31

7,799'5,594'

2,2O6r

2,201r

1,462'5726030

-14976'872451442703

-11'

5

15,02013,704

1,315

1,298

481— J104

-145-174292412282437219

-67

17

5,6184,433

1,185

1,186

6587

34758-15228104100-6137745

-1

-1,85349,14951,002

-3,685166,992170,677

-5,538

-6,493

-18,026-8763,476

10,85852

-1,977

Foreign securities

1,14995,26394,114

-7,830199,010206,840

-6,682

-6,713

-12,083-4,065

8289,338

89-820

31

37929,18028,801

-4,23774,90479,141

-3,858

-4,295

-3,365-2,299

1,059

73244

437

706'7,595'6,889

-1,92917,75319,682

-1,582-498

329424'

201

-101

840'4,8974,057'

-1,490'12,322'13,812

-650 '

-336 '

-493'107

15910

-121

-314

511'4,9894,478'

-1,326'12,81214,137'

-879 '

-326 '-654

126-197

9163

65

-6785,7176,3%'

-1,43315,85817,291

-2,111

-2,131

-1,627'-648

- 6 437

169

-724 '6,6937,417'

-1,17916,561

17,740

-1,903'

-1,944'

-1,541-366

138-154 '

48- 7 0

3725,7975,425

-13715,59315,730

235

179

483-406

538-407

14- 4 3

56

13,65415.836

-2,182

-2,089

-1,810-175-177

- 5 9-263

-1,168-332- 8 6

519923

- 3 5

-92

7,9093,695

4,215

4,184

2,249- 1 8

2180151

1.892927710

1,741

17

31

5,9835,085

-16214,08114,243

736

480

-354-225

322712

25

256

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,Oman, Qatar, Saudi Arabia, and United Arab Emirates (Tniciai States).

2. Includes state and local government securities, and securities of U.S.government agencies and corporations. Also includes issues of new debt securi-

ties sold abroad by U.S. corporations organized to finance direct investmentsabroad.


3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions

Millions of dollars

Country or area 1986 1987'

1988

Jan.-May

1987

Nov. Dec.'

1988


1 Estimated total2

2 Foreign countries2

3 Europe2

4 Belgium-Luxembourg5 Germany2

6 Netherlands7 Sweden8 Switzerland2

9 United Kingdom10 Other Western Europe11 Eastern Europe12 Canada

13 Latin America and Caribbean14 Venezuela13 Other Latin America and Caribbean16 Netherlands Antilles17 Asia18 Japan19 Africa20 All other

21 Nonmonetary international and regional organizations22 International23 Latin American regional

Memo24 Foreign countries2

23 Official institutions26 Other foreign3

Oil-27 Middle. East-28 Africa7

19,388

20,491

16,326-2437,6701,283

132329

4,3462,613

0

926- 9 6

1,130-1081,343-22- 5 4

1,067

-1,104-1,430

157

20,49114,2146,283

-1,5295

Transactions, net purchases or sales ( - ) during period1

25,587

30,889

23,716633

13,330-913

2101,9173,9754,563

- 1 94,526

-2,192150

-1,142-1,200

4,488868- 5 6407

-5,300-4,387

3

30,88931,064

-181

-3,14216

39,050

39,136

18,0001,3346,901

469-269-3934,8175,078

422,812

1,09034

713343

16,71915,590

- 2 2537

- 8 4-114

39,13628,43810,697

-973I

7,676

6,340

1,820314182

-2973,1631,158

3679

47235

36769

1,4761,757- 2 9

-1,260

-1,296-1,492

0

7,6761,8545,822

-1

2,507

4,121

1,387-1031,157- 7 8

28-5301,220-307

711

-1881

120-3092,210

- 4 8

-1,614-1,620

0

4,1211,6702,451

338

4,645

5,740

4,321469

3,045-337-61118

-1011,179

9356

2190

18436

7722,979

- 3 8110

-1,095-1,023

5,7405,118

622

-8090

12,083

12,832

5,878242

1,39733426

-1,1884,373

67816

359

630

320311

5,9214,996

25-182

-748-879

- 2

12,8327,1695,663

-296

9,98c

9,017'

3,471454919378

-245643

-2441,570

- 3372

198'20

16910

5,463'4330

-492'

963'968'

9,017'8,146'

871'

5780

3,433

3,728

2,33247

1,576117

- 9 334497

238

5140

8,909

7,819

1,997143

-37-22104

-309692

1,41314

1,391

751597-367136870

475

-295-334

0

3,7283,075653

-330

-5623

3,8512,599-13626

1,0911,155

7

7,8194,9302,888

-9590

1. Estimated official and private transactions in marketable U.S. Treasurysecurities with an original maturity of more than 1 year. Data are based onmonthly transactions reports. Excludes nonmarketable U.S. Treasury bonds andnotes held by official institutions of foreign countries.

2. Includes U.S. Treasury notes publicly issued to private foreign residentsdenominated in foreign currencies.


4. Comprises Algeria, Gabon, Libya, and Nigeria.

Interest and Exchange Rates A67

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS

Percent per year

Country

Rate on July 31, 1988

Percent Montheffective

Country



Country



Austria..Belgium .Brazi l . . .Canada..Denmark

3.56.75

49.09.537.0

July 1988July 1988Mar. 1981July 1988Oct. 1983

France1

Germany, Fed. Rep. ofItalyJapanNetherlands

6.753.012.02.53.75

July 1988July 1988Aug. 1987Feb. 1987July 1988

NorwaySwitzerlandUnited Kingdom2

Venezuela

8.02.5

June 1983Dec. 1987

8.0 Oct. 1985

1. As of the end of February 1981, the rate is that at which the Bank of Francediscounts Treasury bills for 7 to 10 days.

2. Minimum lending rate suspended as of Aug. 20, 1981.NOTE. Rates shown are mainly those at which the central bank either discounts

or makes advances against eligible commercial paper and/or government com-mercial banks or brokers. For countries with more than one rate applicable tosuch discounts 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 RATES

Percent per year, averages of daily figures

Country, or type

2 United Kingdom

5 S w i t z e r l a n d ...

6 Netherlands • •.

3 Italy . , . ,

1985

8.2712.169.645.404.92

6.299.91

14.869.606.47

1986

6.7010.879.184.S84.19

5.567.68

12.608.044.96

1987

7.079.658.383.973.67

5.248.14

11.157.013.87

1988

Jan.

7.118.848.753.402.09

4.248.19

10.476.493.88

Feb.

6.739.188.583.291.48

3.987.54

10.806.193.82

Mar.

6.748.838.633.381.61

3.977.89

11.116.093.82

Apr.

7.058.258.903.371.83

3.987.99

10.546.083.80

May

7.408.009.073.512.23

4.077.81

10.576.053.80

June

7.618.919.443.882.82

4.107.27

10.906.043.82

July

8.0910.459.424.883.67

4.857.32

11.026.843.84

NOTE. 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 • September 1988

3.28 FOREIGN EXCHANGE RATES1

Currency units per dollar

Country/currency 1985 1986 1987

1988

Feb. Mar. Apr. May June July

1 Australia/dollar3

2 Austria/schilling3 Belgium/franc4 Canada/dollar5 China, P.R./yuan6 Denmark/krone

7 Finland/markka8 France/franc9 Germany/deuische mark

10 Greece/drachma11 Hong Kong/dollar12 India/rupee.,.13 Ireland/punt2

14 Italy/lira15 Japan/yen16 Malaysia/ringgit17 Netherlands/guilder,....18 New Zealand/dollar2 . . .19 Norway/krone20 Portugal/escudo

21 Singapore/dollar22 South Africa/rand23 South Korea/won24 Spain/peseta25 Sri Lanka/rupee26 Sweden/krona27 Switzerland/franc28 Taiwan/dollar29 Thailand/baht 430 United Kingdom/pound2

MEMO31 United States/dollar3 . . .

70.02620.67659.336

1.36582.9434

10.598

6.19718.97992.9419

138.407.7911

12.332106.62

1908.90238.47

2.48063.3184

49.7528.5933

172.07

2.20082.2343

861.89169.9827.1878.60312.455139.88927.193129.74

143.01

67.09315.26044.6621.38963.46158.0954

5.07216.92562.1704

139.937.803712.597

134.14

1491.16168.35

2.58302.4484

52.4567.3984

149.80

2.17822.2918

884.61140.0427.9337.12721.7979

37.83726.314

146.77

112.22

70.13612.64937.357

1.32593.73146.8477

4.40366.01211.7981

135.477.7985

12.943148.79

1297.03144.60

2.51852.0263

59.3276.7408

141.20

2.10592.0385

825.93123.5429.4716.34681.4918

31.75625.774

163.98

96.94

71.4011.92035.473

1.26823.73146.4918

4.11595.73231.6963

135.567.7978

13.065156.87

1249.62129.172.58121.9051

66.3866.4167

138.84

2.01852.0529

776.85114.3630.8596.05241.3916

28.66525.324175.82

91.08

73.2911.76735.1261.24923.7314

6261

4.04835.68931.6770

134.607.802812.979

159.33

1240.67127.112.56891.8837

66.2396.3337

137.48

2.01332.1330

757.37112.3830.8925.94971.3863

28.68725.232183.30

89.73

74.8011.74434.9621.23533.73146.4207

4.00645.67041.6710

133.867.816613.158

159.81

1240.99124.902.57431.8749

66.1436.2140

136.77

2.00442.1428

745.31110.8030.9395.88921.3823

28.69525.171187.82

88.95

77.7411.91235.3811.23733.73146.4938

4.02975.73481.6935

135.757.815613.315

157.78

1258.81124.792.58471.8987

68.8896.1875

138.44

2.01092.2114

739.44112.0430.9935.90911.4111

28.66625.170186.95

89.74

80.7612.38036.7861.21763.73146.6893

4.17615.93101.7579

140.697.807313.785

152.65

1305.56127.472.58601.9767

69.9966.3951

143.54

2.02852.2716

732.88116.2531.1336.10741.4629

28.72325.280177.68

92.58

80.0012.99138.6491.20753.73147.0266

4.38966.22411.8466

147.857.813514.079

145.49

1367.26133.022.62672.0827

66.8326.7207

150.42

2.04592.3985

728.67122.2731.7826.35421.5343

28.72625.523170.51

96.53

1. Averages of certified noon buying rates in New York for cable transfers.Data in this table also appear in the Board's G.5 (405) release. For address, see

inside front cover.2. Value in U.S. cents.3. Index of weighted-average exchange value of U.S. dollar against the

currencies of 10 industrial countries. The weight for each of the 10 countries is the1972-76 average world trade of that country divided by the average world trade ofall 10 countries combined. Series revised as of August 1978 (see FEDERALRESERVE BULLETIN, vol. 64, August 1978, p. 700).

A69

Guide to Tabular Presentation,Statistical Releases, and Special Tables

GUIDE TO TABULAR PRESENTATION

Symbols and Abbreviations

c Corrected 0e 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.) REITs* 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 releasesIssue

July 1988PageA87

SPECIAL TABLES

Published Irregularly, with Latest Bulletin Reference

Assets and liabilities of commercial banks, March 31, 1987 October 1987 A70Assets and liabilities of commercial, banks, June 30, 1987 February 1988 A70Assets and liabilities of commercial banks, September 30, 1987 April 1988 A70Assets and liabilities of commercial banks, December 31, 1987 June 1988 A70Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1987 November 1987 A70Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1987 February 1988 A76Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1987 June 1988 A76Assets and liabilities of U. S. branches and agencies of foreign banks, March 31,1988 September 1988 A82Terms of lending at commercial banks, August 1987 January 1988 A70Terms of lending at commercial banks, November 1987 September 1988 A76Terms of lending at commercial banks, February 1988 May 1988 A70Terms of lending at commercial banks, May 1988 September 1988 A70Pro forma balance sheet and income statements for priced service operations, June 30, 1987 November 1987 A74Pro forma balance sheet and income statements for priced service operations, September 30,1987 . February 1988 A80Pro forma balance sheet and income statments for priced service operations, March 31, 1987 August 1988 A70

Special Tables begin on next page.

A70 Special Tables • September 1988

4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 2-6, 19881

A. Commercial and Industrial Loans2

Characteristic

ALL BANKS

1 Overnight8

S Over one month and under a year . . . .6 Fixed rate

8 Demand9

10 Floating rate

11 Total short term . . . . . . .

12 Fixed rate (thousands of dollars)13 1-2414 25-4915 50-9916 100-49917 500-999

19 Floating rate (thousands of dollars) . . .20 1-2421 25-4922 50-9923 100-49924 500-99925 1000 and over

26 Total long term

27 Fixed rate (thousands of dollars)28 1 9929 100-49930 500-99931 1000 and over . . . . . . .

32 Floating rate (thousands of dollars) . . .33 1-9934 100-49935 500-99936 1000 and over

LOANS MADE BELOW PRIME"

37 Overnight8

39 Over one month and under a year —40 Demand'

41 Total short term

43 Floating rate

44 Total long term . . . . . .

45 Fixed rate

Amount ofloans

(thousandsof dollars)

16,739,077

7,188,7875,289,1631,899,624

10,467,2694,314,6116,152,658

16,848,8991,988,219

14,860,680

51,244,032

28,330,263253,083131,771232,049541,448379,687

26,792,225

22,913,769468,970546,671856,947

3,391,5472,026,198

15,623,437

3,655,503

1,082,63894,114

105,14524,397

858,982

2,572,865197,771435,329262,774

1,676,990

16,258,2136,043,1973,571,4624,245,944

30,118,817

25,180,9804,937,837

1,464,028

526,069937,959

Averagesize


7,170

640831390

146126166

256398244

340

590733

66208657

7,724

2239

3466

199653

4,729

227

18718

215673

5,587

24926

215673

4,638

9,1933,422

7091,036

2,378

3,713839

1,418

1,0911,703

Weighted

maturity3

Days

171621

14696

181

**•

4920

1171101071156515

143157152169159182133

Months

49

4543435445

5143685447

Days

*15

128

22

13109

Months

38

3142

Loan rate (percent)

Weightedaverage

effective4

7.48

8.097.928.57

9.209.069.30

9.207.849.39

8.49

7.8311.4110.8410.449.628.647.71

9.3010.5910.3710.179.839.569.02

9.05

9.0411.7710.3710.058.55

9.0610.6210.049.778.51

Standarderror3

.07

.14

.09

.27

.13

.17

.17

.12

.19

.11

.12

.12

.15

.17

.16.19.14.09

.11

.11

.09

.07

.07

.03

.15

.24

.29

.29

.27

.91

.20

.25

.13.15.17.25

Loan rate (percent)

Effective4

7.437.768.027.69

7.60

7.577.76

7.71

7.907.61

Nominal10

7.177.497.787.44

7.34

7.317.51

7.50

7.757.35

Inter-quartilerange6

7.12-7.79

7.51-8.437.51-8.177.50-9.41

8.34-9.858.07-9.928.78-9.84

8.77-9.927.36-8.138.84-9.96

7.45-9.38

7.26-8.1210.38-12.479.87-11.749.65-11.048.77-10.527.89-9.477.25-8.00

8.83-9.929.92-11.079.65-11.029.42-10.928.94-10.478.84-10.208.24-9.84

7.71-9.93

7.58-9.7210.47-12.409.72-11.838.39-10.757.58-9.31

7.71-10.069.84-11.309.38-10.759.38-9.%7.55-9.38

Prime rate"

8.508.528.668.58

8.53

8.518.65

8.59

8.688.54

Loansmadeunder

commit-ment

(percent)

79.7

82.385.074.9

64.965.364.7

82.183.581.9

77.8

78.724.327.931.543.872.180.7

76.769.373.178.180.488.474.7

56.5

57.515.920.380.566.0

56.130.131.741.767.7

79.285.177.762.7

77.9

80265.9

84.0

60.897.0

Partici-pationloans

(percent)

7.1

9.9999.9

6.98.85.6

6.36.86.3

7.2

7.91.0.9

1.13.88.38.1

6.4.5

1.82.35.18.96.9

8.7

.3

.92.8

.0

.0

12.24.45.49.3

15.3

7.912 17.05.4

8.3

8 85.7

6.2

.09.7

Most

basepricingrate7

Fed funds

Domestic

Prime

PrimeOtherPrime

PrimeOtherPrime

Prime

Fed fundsPrimePrimePrimePrimeOther

Fed funds

PrimePrimePrimePrimePrimePrimePrime

Prime

Fed fundsOtherOtherOther

Fed funds

Prime

Prime

Prime

For notes see end of table.


4.23—ContinuedA. Commercial and Industrial Loans—Continued

Characteristic

Amount ofloans


Averagesize


Weightedaverage

maturity3

Days

Loan rate (percent)

Weightedaverage

effective4

Standarderror3

Inter-quartilerange"

Loansmadeunder

commit-ment

(percent)

Partici-pationloans

(percent)

Mostcommon

basepricingrate7

LARGE BANKS

1 Overnight8

2 One month and under3 Fixed rate4 Floating rate

5 Over one month and under a year6 Fixed rate7 Floating rate

8 Demand9

9 Fixed rate10 Floating rate

11 Total short term

12 Fixed rate (thousands of dollars)13 1-2414 25-4915 50-9916 100-499 ".17 500-99918 1000 and over

19 Floating rate (thousands of dollars) . . .20 1-2421 25-4922 50-9923 100-49924 500-99925 1000 and over

26 Total long term

27 Fixed rate (thousands of dollars)...28 1-9929 100-49930 500-99931 1000 and over

32 Floating rate (thousands of dollars)33 1-9934 100-49935 500-99936 1000 and over

LOANS MADE BELOW PRIME12

37 Overnight8

38 One month and under39 Over one month and under a year40 Demand'

41 Total short term


44 Total long term

45 Fixed rate46 Floating rate . .

12,554,893

5,093,4733,888,3971,205,076

6,209,8942,618,9313*590,963

10,081,5131,174,9748,906,539

33,939,773

20,237,19510,74711,52527,590

130,691162,000

19,894,643

13,702,57887,752

117,921220,461

1,226,625760,919

11,288,901

2,025,128

659,4298,001

17,77810,958

622,693

1,365,69923,81776,66865,457

1,199,757

12j097,7874,375,5432,339,8802,873,816

21,687,026

18,378,0153,309,011

1,125,739

323,917801,821

9,907

2,7163,9421,356

6821,198519

6382,511581

1,210

4,124103264220655

8,905

592113467211659

6,511

1,052

1,28224229659

6,955

96829220684

7,781

11,1885,9814,4014,746

7,351

8,0305,002

6,102

4,0637,653

171622

13488168

39

16857478564715

131173177169163137127

Months

47

4946545549

4635395846

Days

15121

19

1397

Months

39

3640

7.52

8.067.898.61

8.958.749.11

9.067.669.25

8.32

7.7610.5910.219.949.228.897.73

9.1610.2510.1910.029.689.509.04

8.54

8.6711.6510.0511.148.55

8.4810.649.989.758.27

.09

.25

.07

.41

.15

.07

.22

.16

.22

.15

.16

.07

.20

.21

.23

.22

.18

.17

.17

.17

.11

.07

.03

.21

.17

.27

.46

.401.61.25

.45

.25

.24

.27

.42

7.12-7.82

7.57-8.417.57-8.137.61-9.93

8.18-9.738.03-9.478.71-9.73

8.06-9.927.28-7.998.77-9.92

7.38-9.04

7.25-8.069.85-11.059.65-10.929.38-10.398.44-9.938.11-9.857.25-8.06

8.77-9.919.38-11.029.38-11.029.38-10.478.84-10.248.84-9.968.17-9.84

7.44-9.31

7.40-9.3110.47-12.689.38-11.249.92-10.757.40-9.31

7.44-9.389.65-11.579.11-10.479.11-10.387.41-8.84

Loan rate (percent)

Effective4 Nominal10

7.467.797.947.56

7.59

7.597.63

7.57

7.687.53

Prime rate"

7.207.517.717.32

7.33

7.327.39

7.37

7.627.27

8.508.508.508.50

8.50

8.508.50

8.50

8.508.50

75.9

85.384.886.6

68.273.964.0

76.575.576.6

76.1

77.431.824.037.761.877.077.6

74.285.784.184.788.186.771.5

71.4

61.632.851.393.461.7

76.261.268.170.577.3

75.287.176.150.5

74.4

76.463.4

84.3

47.599.1

8.6

8.97.6

13.2

4.88.71.9

6.74.17.1

7.4

8.14.12.0

.83.44.68.2

6.3.1.1.7

3.23.57.0

5.9

.03.2.0.0.0

.54.3

.09.7

8.97.83.73.4

7.4

8.04.1

.1

.0

Fed funds

DomesticDomestic

Prime

PrimeForeignPrime

PrimeOtherPrime

Fed hinds

Fed fundsPrimePrimePrimePrimeNone

Fed funds


Domestic

Fed fundsOtherOtherOther

Fed funds

DomesticPrimePrimePrime

Domestic


A72 Special Tables D September 1988

4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 2-6, 19881—Continued

A. Commercial and Industrial Loans—Continued2

Characteristic

OTHER BANKS

3 Fixed rate

S Over one month and under a year6 Fixed rate

8 Demand9

9 Fixed rate

U Total short term

12 Fixed rate (thousands of dollars)13 i_2414 25-4915 50 9916 100-49917 500-999

19 Floating rate (thousands of dollars) . . .20 1-2421 25-4922 50 9923 100-49924 500-99925 1000 and over

27 Fixed rate (thousands of dollars)28 1-9929 100-49930 500-999

32 Floating rate (thousands of dollars) . . .33 1-9934 100-49935 500-99936 1000 and over


37 Overnight8

39 Over one month and under a year


44 Total long lerm

45 Fixed rate

Amount ofloans


4,184,184

2,095,3141,400,765

694,549

4,257,3741,695,6802,561,695

6,767,386813,245

5,954,141

17,304,259

8,093,067242,336120,247204,459410,757217,687

6,897,582

9,211,191381,218428,750636,486

2,164,9221,265,2794,334,536

1,630,375

423,20986,11387,36713,440

236,290

1,207,166173,955358,661197,317477,232

4,160,4261,667,6541,231,5821,372,128

8,431,791

6,802,9641,628,826

338,290

202,152136,138

Averagesize


3,920

224261175

685385

135180131

141

1887

3367

205659

5,587 •

1169

3466

193649

2,761

115

8018

212685

3,680

13526

214670

2,301

6,0541,612

274393

868

1,514312

399

503305

Weighted

maturity1

Days

171619

163109199

*

*

70

291191131111348015

161154145169157198151

Months

52

3842415334

5744745250

Days

*15

140*

29

14127

Months

35

2255

Loan rate (percent)

Weighted

effective4

7.36

8.178.008.50

9.569.559.57

9.428.119.59

8.80

8.0111.4510.9010.519.758.457.64

9.5010.6710.4110.239.919.598.98

9.69

9.6211.7910.449.178.56

9.7110.6210.059.789.09

Standarderror5

.10

.16

.16

.38

.05

.20

.19

.19

.24

.17

.14

.20.16.20,23.24.22.18

.13

.05

.05

.06

.11

.05

.24

.12

.47

.37

.33

.67

.37

.12

.12

.19

.24

.29

Loan rate (percent)

Effective4

7.357.708.177.95

7.63

7.548.03

8.17

8.258.07

Nominal10

7.097.427.917.69

7.37

7.287.76

7.90

7.977.80

Inter-

range6

6.98-7.59

7.43-8.447.43-8.337.50-9.40

8.77-10.478.21-10.928.84-9.96

8.84-9.967.60-8.52

8.84-10.20

7.52-9.92

7.28-8.2610.38-12.47

9.92-11.919.84-11.048.78-11.027.73-9.117.22-7.92

8.84-10.099.92-11.079.84-11.029.65-11.029.11-10.478.87-10.208.50-9.69

8.84-10.47

7.58-11.0210.47-12.409.92-11.838.39-10.757.58-9.40

8.87-10.479.84-11.309.38-10.759.38-9.938.84-9.84

Prime rate"

8.508.568.968.74

8.62

8.548.94

8.90

8.988.78

Loansmadeunder

commit-ment

(percent)

90.9

75.285.454.6

60.252.065.6

90.595 189.9

81.3

82.223.928.230.738.168.589.8

80.565.670.075.976.089.483.1

37.9

51.214.314.070.077.4

33.325.823.932.143.5

90.979.780.888.2

86.8

90.670.9

83.1

82.284.4

Partici-pationloans

(percent)

2.5

12.316.44.1

10.19.0

10.8

5.710.75.1

6.8

7.1.8.8

1.24.0

11.17.7

6.6.6

2.22.96.2

12.16.7

12.1

.8

.73.3.0.0

16.04.95.7

12.429.4

5.123.113.39.6

10.6

11.09.0

26.6

.066.2

Most

basepricing

rate'

Fed funds

Fed fundsFed funds

Prime

PrimeFed funds

Prime

Fed fundsPrime

Prime

Fed fundsPrimePrimePrime

OtherFed funds

PrimePrimePrime

PrimePrimePrime

Prime

DomesticOtherOther

Fed fundsDomestic

PrimePrimePrimePrimePrime


4.23—ContinuedB. Construction and Land Development Loans'


Characteristic

Amount ofloans


Averagesize


Weightedaveragematurity

(months)

Loan rate (percent)

Weightedaverage

effective4

Standarderror3

Inter-quartilerange'

Loans madeunder

commitment(percent)

Partici-pationloans

(percent)

A L L BANKS

1 Total

2 Fixed rate (thousands of dollars)...3 1-244 25-495 50-996 100-4997 500 and over

8 Floating rate (thousands of dollars)9 1-24

10 25-4911 50-9912 100-49913 500 and over

fly type of construction14 Single family15 Muftifamily16 Nonresidential

LARGE BANKS13

1 Total



10 25-4911 50-9912 100-49913 500 and over

By type of construction14 Single family15 MuTtifamily16 Nonresidential

OTHER BANKS"

1 Total



10 25-4911 50-9912 100-49913 500 and over

By type of construction14 Single family15 Muhifamily16 Nonresidential

4,023,264 2S7

1,350,17521,10220,75621,94498,581

1,187,793

2,673,08956,90069,21193,560515,670

1,937,747

375113863147

9,437

222103567222

3,954

507,335187,055

3,328,873

2,891,114

1,123,599815914

1,1994,771

1,115,900

1,767,5156,4098,58514,55886,608

1,651,356

92,235114,789

2,684,090

1,132,150

226,57620,28719,84220,74593,810

905,57450,49160,62679,003

429,062286,392

415,10172,266644,783

64242476

1,421

4,61393464

23612,369

987103570229

5,458

227324

2,106

83

67II3863145

103567220

1,527

55173113

32098202

18109111023

101212

11023229

241215181625

51012

13209720

119810916

111412

9.29

8.6911.6611.6211.8110.828.35

9.5910.7510.6010.4610.719.18

10.389.359.12

8.83

8.2910.7210.259.489.088.28

9.1810.2210.119.969.989,12

9.169.008.81

10.44

10.6511.7011.6911.9510.91

10.3910.8110.6710.5510.869.51

10.659.91

10.37

.22

.52

.21

.27

.37

.29

.18

.12

.14

.14

.19

.16

.24

.18

.24

.26

.75

.21

.44

.30

.441.03

.20

.15

.11

.17

.20

.25

.36

.30

.29

.20

.40

.28

.25

.28

.26

.19

.15

.22

.19

.19

.19

.21

.18

.28

8.84-9.92

7.37-9.2811.02-12.1311.02-12.1311.57-13.3110.38-11.57

7.37-9.08

8.84-10.249.93-11.029.92-11.029.92-11.029.96-11.028.84-9.42

9.92-11.079.22-9.928.36-9.69

8.36-9.38

7.37-9.0810.20-11.029.42-10.758.84-9.%8.50-9.297.37-9.08

8.84-9.429.65-10.759.79-10.479.38-10.249.42-10.478.84-9.42

8.85-10.207.37-9.658.33-9.17

9.69-11.02

9.22-11.6311.02-12.1311.35-12.1311.57-13.3110.38-11.57

9.69-11.0210.20-11.029.92-11.079.92-11.02

10.47-11.079.11-9.92

9.96-11.489.22-10.479.38-11.02

88.3

95.554.448.645.679.999.3

84.787.479.679.262.091.1

82.489.289.2

99.4

99.872.880.875.870.4

100.0

99.193.794.795.095.199.4

97.197.299.5

60.2

74.153.747.143.980.4

56.786.677.576.355.443.6

79.176.446.1

16.6

20.9.0.4.9

4.623.4

14.42.02.97.55.6

17.5

8.96.2

18.4

20.8

24.9.0

9.217.424.)24.9

18.29.86.39.6

12.418.7

45.44.2

20.7

6.0

1.5.0.0.0

3.6

7.11.02.44.86.6

10.5

.89.58.9



4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 2-6, 1988'—Continued

C. Loans to Farmers14

Characteristic

Size class of loans (thousands)

All sizes $1-9 $10-24 $25-49 $50-99 $100-249 $250and over

ALL BANKS

1 Amount of loans (thousands of dollars)..2 Number of loans3 Weighted average maturity (months)' . . .

4 Weighted average interest rate (percent)4

5 Standard error . . ,6 Interquartile rente6

By purpose of loan7 Feeder livestock8 Other livestock9 Other current operating expenses

10 Farm machinery and equipment11 Farm real estate12 Other

Percentage of amount of loans13 With floating rates14 Made under commitment

By purpose of loan15 Feeder livestock16 Other livestock17 Other current operating expenses18 Farm machinery and equipment19 Farm real estate20 Other

LAROE BANKS1 4

1 Amount of loans (thousands of dollars)..2 Number of loans3 Weighted average maturity (months)3 . . .


5 Standard error6 Interquartile rante'





OTHER BANKS1 4



5 Standard error . . ,6 Interquartile rante



$1,085,95952,897

13.1

10.68.18

9.75-11.50

10.5310.5610.8911.309.75

10.42

57.548.3

22.15.9

45.63.93.6

18.9

$363,0684,850

6.9

9.70.16

9.08-10.38

9.629.779.86

10.6610.599.52

76.679.2

33.87.0

32.8.9.8

24.7

$722,89148,047

14.7

11.17.07

10.52-12.03

11.4911.0811.2211.359.68

11.11

$132,17335,635

8.3

11.51.37

10.78-12.13

11.4211.7711.4312.0310.8911.78

56.042.8

8.73.6

71.07.61.77.5

$9,2362,310

8.2

10.80.34

10.16-11.30

10.1111.0610.7912.0811.4310.57

89.082.8

8.34.2

70.64.22.99.8

$122,93733,326

8.3

11.56.14

10.78-12.19

11.5111.8311.4812.03

*11.91

$137,3589,482

12.3

11.37.16

10.75-12.15

11.1911.6211.3811.7011.20U.12

51.037.2

8.95.4

63.19.53.19.8

$14,10495110.1

10.47.12

9.84-11.02

10.32

10.4510.7410.5910.47

90.8

7.2*

68.64.73.0

15.3

$123,2548,531

12.5

11.48.10

10.78-12.19

11.2711.6411.4911.75

*11.25

$140,9494,04211.8

11.38.27

10.73-12.10

11.5012.3611.16

11.47

58.144.2

16.16.7

61.5

8.9

$18,07654011.9

10.44.21

9.92-10.92

10.17

10.27

10.85

98.181.6

9.8*

64.5**

15.4

$122,8733,50111.8

11.52.15

10.77-12.13

11.61*

11.30

11.65

$124,9761,90016.3

10.74.46

9.96-11.38

11.379.9910.77

10.81

67.164.6

21.612.444.0

9.5

$30,4524609.9

10.19.44

9.58-10.75

9.9210.9410.15

10.09

93.886.2

20.28.7

44.6

20.4

$94,5251,44117.7

10.92.14

10.50-11.50

10.97

$186,3711,2746.1

10.58.32

9.96-11.02

10.79*

10.44

*

10.67

61.339.0

29.9*

50.7

13.8

$53,4893678.1

9.97.24

9.38-10.65

9.96*

9.94**

10.25

94.492.1

31.1*

48.1

•

15.6

$132,8829075.7

10.82.20

10.52-11.23

10.62

$364,13056319.9

9.88.45

8.95-10.52

9.84

10.05

*

10.07

55.155.1

30.5*

21.4*

36.3

$237,7102225.1

9.43.21

8.77-9.92

9.52*

9.43**

9.29

67.575.0

40.5•

21.9

29.1


4.23—ContinuedC. Loans to Farmers14—Continued


Characteristic




By purpose of loan15 Feeder livestock16 Other livestock17 Other current operating expenses18 Farm machinery and equipment.19 Farm real estate20 Other

48.032.7

16.35.3

51.95.55.0

16.1

53.539.8

8.73.6

71.07.9*7.3

46.432.2

9.15.9

62.510.1*9.2

52.238.7

17.0*

61.0*

7.9

58.557.6

43.8

48.017.6

51.8

•Fewer than 10 sample loans.1. The survey of terms of bank lending to business collects data on gross loan

extensions made during the first full business week in the mid-month of eachquarter by a sample of 340 commercial banks of all sizes. A subsample of 250banks also report loans to fanners. The sample data are blown up to estimate thelending terms at all insured commercial banks during that week. The estimatedterms of bank lending are not intended for use in collecting the terms of loansextended over the entire quarter or residing in the portfolios of those banks.Construction and land development loans include both unsecured loans and loanssecured by real estate. Thus, some of the construction and land developmentloans would be reported on the statement of condition as real estate loans and theremainder as business loans. Mortgage loans, purchased loans, foreign loans, andloans of less than $1,000 are excluded from (lie survey.

As of Dec. 31,1987, assets of most of the large banks were at least $6.0 billion.For all insured banks total assets averaged $220 million.

2. Beginning with the August 1986 survey respondent banks provide informa-tion on the type of base rate used to price each commercial and industrial loanmade during the survey week. This reporting change is reflected in the newcolumn on the most common base pricing rate in table A and footnote 13 fromtable B.

3. Average maturities are weighted by loan size and exclude demand loans.4. Effective (compounded) annual interest rates are calculated from the stated

rate and other terms of the loan and weighted by loan size.5. The chances are about two out of three that the average rate shown would

differ by less than this amount from the average rate that would be found by acomplete survey of lending at all banks.

6. The interquartile range shows the interest rate range that encompasses themiddle 50 percent of the total dollar amount of loans made.

7. The most common base rate is that rate used to price the largest dollarvolume of loans. Base pricing rates include the prime rate (sometimes referred toas a bank's "basic" or "reference" rate); the federal funds rate; domestic moneymarket rates other than the federal funds rate; foreign money market rates; andother base rates not included in the foregoing classifications.

8. Overnight loans are loans that mature on the following business day.9. Demand loans have no stated date of maturity.10. Nominal (not compounded) annual interest rates arc calculated from survey

data on the stated rate and other terms of the loan and weighted by loan size.11. The prime rate reported by each bank is weighted by the volume of loans

extended and then averaged.12. The proportion of loans made at rates below prime may vary substantially

from the proportion of such loans outstanding in banks' portfolios.13. 56.5 percent of construction and land development loans w^n priced

relative to the prime rate.14. Among banks reporting loans to farmers (Table C), most "large banks"

(survey strata 1 to 3) had over $600 million in total assets, and most "other banks"(survey strata 4 to 6) had total assets below $600 million.

The survey of terms of bank lending to fanners now includes loans secured byfarm real estate. In addition, the categories describing the purpose of farm loanshave now been expanded to include purchase or improve farm real estate." Inprevious surveys, the purpose of such loans was reported as "other."


4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-6, 1987*1

A. Commercial and Industrial Loans2

Characteristic

Amount ofloans


Averagesize


Weightedaverage

maturity3

Days

Loan rate (percent)

Weightedaverage

effective4

Standarderror3


Loansmadeunder

commit-ment

(percent)

Partici-pationloans

(percent)

Mostcommon

basepricingrate7

ALL BANKS

1 Overnight8


5 Over one month and under a year .6 Fixed rate7 Floating rate

8 Demand'9 Fixed rate

10 Floating rate

11 Total short term

12 Fixed rate (thousands of dollars)...13 1-2414 25-4915 50-9916 100-49917 500-99918 1000 and over

19 Floating rate (thousands of dollars)20 1-2421 25-4922 50-9923 100-49924 500-99925 1000 and over

26 Total long term


32 Floating rate (thousands of dollars)33 1-9934 100-49935 500-99936 1000 and over


37 Overnight8


41 Total short term


44 Total long term


13,810,386

8,124,0916,445,0381,679,053

7,171,2673,463,7113,707,556

14,730,6182,924,068

11,806,550

43,836,363

26,643,151225,393124,529144,484409,013304,555

25,435,178

17,193,212423,758522,885815,717

3,149,0161,531,58510,750,251

3,574,722

1,665,510114,695147,58363,842

1,339,390

1,909,211197,181336,465156,232

1,219,334

13,390,3056,603,1033,308,2575,299,669

28,601,335

23,904,7454,696,590

1,732,758

1,112,425620,333

6,393

722858449

116114118

2511,108211

327

6247

3365194664

7,934

188103466194649

3,945

196

21417181682

7,592

18224207630

4,091

9,6462,608721

1,599

2,419

3,398981

1,681

1,7541,566

181821

141108173

40

2197110101864618

125148156147146151111

Months

5136677549

4842534349

Days

17139

25

17111

Months

41

4140

7.38

8.248.148.61

9.358.989.70

9.207.779.56

8.47

7.8211.8711.2410.769.558.727.71

9.4910.9510.7710.6110.239.889.02

9.09

8.6711.9310.6710.238.10

9.4511.2810.3910.17

.13

.11

.21

.22

.29

.20

.16

.14.14

.19

.10

.16

.20

.31

.19

.11

.06

.06

.04

.05

.21

.28

.32

.60

.30

.37

.31

.24

.18

.13

.23

.24

7.04-7.52

7.43-8.927.41-8.437.58-9.66

8.21-10.387.92-9.53

9.11-10.52

7.70-10.337.12-8.12

9.11-10.47

7.26-9.52

7.18-8.1010.92-12.7510.39-12.3410.20-11.468.17-10.757.79-9.427.15-8.04

8.80-10.4710.20-11.5710.11-11.529.92-11.309.42-10.759.38-10.387.64-10.11

7.50-10.38

7.12-10.0610.47-12.5010.20-11.309.00-11.797.06-8.79

8.46-10.4710.47-11.859.69-11.029.31-10.927.34-9.65

Loan rate (percent)

Effective4 Nominal"1

7.317.828.107.53

7.56

7.547.68

7.66

7.637.71

Prime rate"

7.057.547.857.34

7.31

7.287.44

7.50

7.537.45

8.938.%8.978.97

8.95

8.949.00

8.98

9.038.88

76.4

77.079.965.7

71.267.974.2

82.386.781.2

77.7

77.316.018.328.547.576.978.9

78.270.976.078.882.684.476.4

68.7

75.26.5

22.245.2

63.121.446.559.174.9

76.076.777.472.2

75.6

77.566.2

90.1

89.890.6

2.9

13.712.817.3

5.34.75.9

4.54.54.6

5.9

5.71.5.2

1.24.07.45.8

6.1.5

1.62.36.33.47.1

3.8

1.8.2

1.111.81.6

5.5.8

8.215.54.3

3.018.25.13.6

6.9

6.77.9

3.2

2.34.9

Fed funds

DomesticDomestic

Prime

PrimeForeignPrime

PrimeDomestic

Prime

Prime

Fed fundsPrimePrimePrimePrimeOther

Fed funds


Prime

Fed fundsPrimePrimeOther

Fed funds

PrimePrimePrimePrimePrime



4.23—ContinuedA. Commercial and Industrial Loans2—Continued

Characteristic

Amount ofloans


Averagesize


Weightedaverage

maturity3

Days

Loan rate (percent)

Weightedaverage

effective4

Standarderror5

Inter-quartile

Loansmadeunder

commit-ment

(percent)

Partici-pationloans

(percent)

Mostcommon

basepricingrate r

LARGE BANKS

1 Overnight8



8 Demand9


11 Total abort term

12 Fixed rate (thousands of dollars)13 1-2414 25-4915 50-8916 100-49917 500-99918 1000 and over

19 Floating rate (thousands of dol lars) . . .20 1-2421 25-4922 50-9923 100-49924 500-99925 1009 and over

26 Total long term


32 Floating rate (thousands of dollars)33 1-99*34 100-49935 500-99936 1000 and over


37 Overnight8


41 Total short term

42 Fixed rate43 Floating rate ,

44 Total long term


10,997,573

6,697,9745,349,3021,348,672

4,020,9812,458,60$1,562,372

8,213,6091,954,6356,258,974

29,930,137

20,760,06713,13613,15925,229

125,320162,214

20,421,008

9,170,07078,850

111,763210,836

1,101,907663,034

7,003,680

2,O5S,8*2

1,055,6595,259

13,79115,286

1,021,324

1,000,22323,662

107,40360,311

808,847

10,691,2875,581,8282,565,2673,373,412

22,211,793

18,872,6053,339,188

1,359,008

837,468521,540

9,416

3,3924,8291,555

6311,179364

4922,354394

1,141

4,000103363215669

9,103

436113467209657

4,988

1,125

2,86026

223701

12,578

31239641

5,579

10,8566,0835,2523,885

6,815

7,7734,018

6,988

10,5894,520

191821

134108174

877981644119

10313512611711813499

Months

4953798148

4736424848

Days

17144

25

18105

Months

7.40

8.208.168.33

8.738.92

9.007.759.39

8.20

7.7911.0510.6310.499.618.807.76

9.1510.7110.6210.4810.129.878.85

8.40

8.0512.9710.809.357.96

8.7810.8910.209.988.43

.11

.13.29

.25

.27

.33

.23

.11

.22

.12

.06

.20

.23

.53.23.15.06

.26

.13

.13

.11

.06

.07

.28

.45

.521.17.52.63.50

.35

.25

.19

.39

.37

7.04-7.55

7.41-8.597.43-8.437.11-9.53

7.66-9.517.85-9.427.48-9.92

7.60-10.127.12-8.12

8.43-10.38

7.B-9.W

7.20-8.1010.38-11.579.96-11.309.93-11.028.86-10.397.90-9.487.19-8.10

7.91-10.209.92-11.359.92-11.309.69-11.029.38-10.759.38-10.477.58-9.84

7.20-9.38

7.06-8.7910.75-12.6810.47-11.248.43-10.757.06-8.25

7.34-9.929.92-11.579.38-10.799.31-10.757.25-9.31

Loan rate (percent)

Effective4 Nominal10

4238

7.347.858.047.52

7.58

7.577.62

7.55

7.517.61

Prime rate11

7.087.577.807.31

7.32

7.317.38

7.41

7.467.35

8.948.958.908.94

8.94

8.948.92

8.94

9.008.84

72.5

77.979.969.8

80.277.185.0

76.385.973.2

75.8

76.229.719.628.757.478.276.5

74.784.882.082.985.087.171.5

8».S

98.427.860.057.899.9

80.151.672.485.681.5

72.075.380.060.4

72.0

74.855.9

97.3

99.593.8

1.5

15.414.519.0

3.74.82.0

4.72.85.4

5.8

5.42.61.41.23.59.35.4

6.8.2.7

1.02.3

8.3

1.7

.5

.0

.033.9

.0

2.9

II.*9.61.2

1.618.24.12.7

6.2

5.79.2

.51.2

Fed funds

DomesticDomesticDomestic

ForeignForeignPrime

PrimeDomestic

Prime

Domestic

Fed fundsPrimePrimePrimePrimeNone

Fed funds


Domestic

Fed fundsPrimePrime

ForeignFed funds

DomesticPrimePrimePrime

Domestic



4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-6, 1987*1—Continued

A. Commercial and Industrial Loans2—Continued

Characteristic

OTHER BANKS

1 Overnight8

3 Fixed rate4 Floating rate . . . . .


8 Demand9

9 Fixed r a t e . . . .10 Floating rate

11 Total short term

12 Fixed rate (thousands of dollars)13 1-2414 25-4915 50-9916 100-49917 500-99918 1000 and over

19 Floating rate (thousands of dollars) . . .20 1-2421 25 4922 50 9923 100-49924 500-999. .25 1000 and over

26 Total long term .

27 Fixed rate (thousands of dollars)28 1-9929 100-49930 500-99931 1000 and over

32 Floating rate (thousands of dollars) . . .33 1-99°34 100-49935 500-99936 1000 and over

LOANS M A D E BELOW PRIME 1 2

37 Overnight*

39 Over one month and under a year40 Demand'

41 Total short term . .


44 Total long term . .


Amount ofloans


2,812,813

1,426,1171,095,736

330,382

3,150,2871,005,1032,145,184

6,517,009969,433

5,547,576

13,906,22!

5,883,084212,257111,369119,254283,692142,341

5,014,170

8,023,142344,909411 122604,881

2,047,109868,551

3,746,571

1,518,840

609,851109,436133,79248,556

318,067

908,988173,519229,06295,921

410,487

2,699,0181,021,276

742,9901,926,258

6,389,542

5,032,1401,357,403

373,750

274,95798,793

Averagesize


2,835

154171115

573679

155536138

129

1577

3466

186658

5,210

114103466

187642

2,836

n8217

177676

3,340

10123

195624

2,682

6,692633181788

746

1,093343

447

495352

Weighted

maturity'

Days

*

171620

151107172

***

68

2697

114105965414

151150161153155160144

Months

51

5435667352

4943593950

Days

*15

119*

24

15141

Months

43

4151

Loan rate (percent)

Weightedaverage

effective4

7.30

8.458.069.74

10.059.58

10.27

9.467.829.75

9.05

7.9211.9211.3210.829.528.637.50

9.8811.0010 8110.6510.299.899.33

10.01

9.7511.8810.6610.518.52

10.1911 3310.4810.299.52

Standarderror5

.14

.22

.19

.22

.18

.35.07

.23

.20

.19

.25

.18

.14

.24

.29

.33

.17

.10

.16

.06

.08

.05

.06

.09

.32

.22

.34

.30

.35

.43

.43

.23

.22

.17

.29

.29

Loan rate (percent)

Effective4

7.187.668.307.57

7.50

7.417.84

8.08

8.008.28

Nominal10

6.937.398.027.37

7.26

7.177.60

7.83

7.777.98


6.98-7.51

7.44-9.477.25-8.35

9.14-10.21

9.31-10.927.92-10.929.38-10.79

8.37-10.477.12-8.15

9.31-10.65

7.43-10.38

7.05-8.0510 93-12.7510.65-12.5710.20-11.468.17-10.757.64^9.257.05-7.69

9.38-10.7510.20-11.5710 20 11.579.92-11.309.65-10.759.38-10.348.07-10.38

9.14-10.93

8.00-11.0210.47-12.5010.20-11.309.38-12.13

7.39-9.50

9.42-10.9310.47-11.859.92-11.029.31-11.35

9.31-9.96

Prime rate11

8.909.039.239.01

8.99

8.949.19

9.11

9.139.06

Loansmadeunder

commit-ment

(percent)

91.8

72.579.749.0

59.845.566.4

90.088.390.3

81.7

81.115.218.128.443.175.488.8

82.267.774.477.481.382.385.6

40.7

35.25.5

18.341.351.5

44.417.334.442.461.9

92.184.368.592.9

88.3

87.591.5

63.8

60.373.4

Partici-pationloans

(percent)

8.5

5.64.2

10.4

7.44.58.8

4.37.83.6

6.0

6.91.4.1

1.14.25.37.6

5.3.6

1.82.88.44.45.0

6.7

4.1.2

1.24.96.6

8.5.8

6.219.210.5

8.818.68.55.2

9.2

10.44.9

12.3

7.924.5

Most

basepricingrate r

Fed funds

Fed fundsFed funds

Prime

PrimePrimePrime

PrimeFed funds

Prime

Prime

Fed fundsOtherPrimePrimePrimeOther

Fed funds

PrimePrime

PrimePrimePrimePrime

Prime

PrimePrimePrimeOther

Domestic

PrimePrimePrime

Prime


4.23—ContinuedB. Construction and Land Development Loans1


Characteristic

Amount ofloans


Averagesize


Weightedaveragematurity(months)'

Loan rate (percent)

Weightedaverage

effective4

Standarderror5

Inter-quartilerange6

Loans madeunder

commitment(percent)

Partici-pationloans

(percent)

ALL BANKS

1 Total



10 25-4911 50-9912 100-49913 500 and over

By type of construction14 Single family15 Mufiifamily16 Nonresidential

LARGE BANKS' 3

1 Total


8 Floating rate (thousands of dollars)9 1-2410 25-4911 50-9912 100-49913 500 and over

By type of construction14 Single family15 MuUifamily16 Nonresidential

OTHER BANKS'3

1 Total



10 25-4911 50-9912 100-49913 500 and over

By type of construction14 Single family15 MuUifamily16 Nonresidential

3,424,900

1,608,76143,01061,88564,65942,155

1,397,052

1,816,13962,15861,761

103,915317,563

1,270,742

591,709390,677

2,442,513

2,389,431

1,309,605708774

1,2133,905

1,303,006

1,079,8264,3769,644

15,32477,470

973,012

168,460243,272

1,977,699

1,035,469

299,15642,30261,11163,44738,250

736,31357,78252,11788,591

240,093297,730

423,249147,406464,814

187

230123563127

8,121

160113566189

2,673

52338420

1,374

4,45383467196

8,832

748103770232

4,685

4261,0711,772

62

45123562123

74113466178

1,112

3915999

361710152

1083423157

9106

29205172

59149145

126171015

36241515

102918

9.87

9.6011.1213.0211.4411.269.27

10.1111.0310.9111.2210.809.76

10.5310.109.67

9.52

9.3310.4210.219.818.989.33

9.7610.4710.3410.3410.309.69

9.749.929.45

10.68

10.7911.1313.0511.4711.49

10.6311.0711.0111.3710.%9.99

10.8410.4010.61

.42

.31

.69

.32

.48

.21

.15

.10

.15

.19

.13

.14

.21

.46

.18

.24.39.31.32.16.18

.17

.11

.13

.17

.09

.15

.28

.23

.16

.12

.56

.36

.96

.39

.42

.20

.09

.22

.28

.22

.26

.28

.80

.16

9.25-10.47

8.89-10.0310.47-11.5210.75-13.2410.75-12.1910.75-12.75

8.77-9.64

9.65-10.7510.47-11.5710.47-11.3010.25-12.4010.20-11.309.38-10.20

9.52-11.029.59-10.349.14-10.10

9.11-9.96

8.95-9.829.92-10.759.47-11.079.50-10.207.90-9.658.95-9.82

9.56-10.2010.20-10.7510.20-10.479.92-10.479.92-10.649.35-10.20

9.34-10.479.65-10.20

8.98-9.92

9.69-11.30

8.31-11.5710.47-11.5710.75-13.2410.75-12.1910.75-12.75

9.92-11.3010.47-11.57

10.47—11.5710.25-12.4010.38-11.359.38-10.47

10.20-11.578.31-12.759.92-11.02

87.2

90.781.543.241.655.9%.5

84.169.076.357.169.891.0

73.295.489.3

97.4

96.883.792.292.4

100.096.8

94.096.599.491.998.6

90.296.798.1

63.8

64.381.442.640.651.4

63.667.172.649.862.766.2

66.493.452.0

10.5

17.2.1.0

.919.8

4.71.4.9

2.33.95.4

.621.311.3

11.2

15.13.2

.06.39.6

15.2

6.58.42.7

10.04.76.6

1.71.6

13.2

9.0

26.2.0.0.0.0

2.0.8.6

1.03.61.5

53'.72.9



4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-6, 1987*1—Continued

C. Loans to Farmers14

Characteristic



ALL BANKS

1 Amount of loans (thousands of dollars)..2 Number of loans .3 Weighted average maturity (months)3 . . .

4 Weighted average interest rate (percent)'5 Standard e r r o r . . ,6 Interquartile rante6





LAROE BANKS'*



5 Standard error5 . . ,6 Interquartile rante6





OTHER BANKS'4

1 Amount of loans (thousands of dollars)..2 Number of loans3 Weighted average maturity (months)9 • •.


5 Standard error 5 . . ,6 Interquartile rante'


10 Farm machinery and equipment11 Farm real estate

12 Other

$1,125,17246,536

11.9

11.02.70

9.96-12.19

11.4210.6411.3112.0612.049.14

56.156.4

34.87.4

31.47.32.8

16.2

$365,6384,238

4.4

9.68.68

8.05-10.65

10.2710.6110.4111.2210.358.72

67.795.4

23.64.2

27.31.21.5

42.1

$759,53342,298

14.6

11.67.15

11.29-12.36

11.7510.6411.6612.1112.40

11.41

$101,97628,240

6.9

12.00.35

11.36-12.41

11.8012.2411.9213.1411.9311.99

51.041.4

20.66.2

60.36.41.55.0

$7,3051,698

6.8

11.23.27

10.75-11.63

11.0511.6511.2411.1712.2811.01

86.878.3

19.24.1

58.23.23.3

12.0

$94,67126,541

6.9

12.06.22

11.50-12.45

11.8612.2711.9713.22

12.19

$145,2229,868

8.2

11.65.49

10.94-12.25

11.4611.5211.8711.2012.3311.18

41.140.3

22.95.1

54.39.81.46.5

$14,3479148.0

10.94.47

10.38-11.46

10.80

10.97**

10.82

93.984.4

17.6

58.0

15.1

$130,8758,954

8.3

11.73.11

10.95-12.31

11.51

11.9811.19

11.29

$137,3644,006

8.0

11.37.37

10.65-12.10

11.3211.3611.53

11.04

46.236.8

45.57.3

29.4

7.2

$20,0785937.4

10.70.31

10.00-11.35

10.7410.7410.68

10.73

93.587.8

21.47.3

47.6

19.2

$117,2873,413

8.1

11.48.19

11.30-12.19

^11.36

11.79

$167,7302.488

7.0

11.47.34

11.01-12.19

11.73

11.35

*

11.24

53.851.0

48.2

30.0

6.9

$25,6073818.0

10.70.18

10.43-11.04

10.80*

10.63*

10.73

97.792.1

19.7

55.7

16.2

$142,1222,107

6.9

11.61.28

11.29-12.19

11.79*

11.64

$222,0131,45435.5

11.51.57

10.78-12.22

11.5110.6111.29

10.67

63.851.6

46.45.623.0

6.0

$60,1523889.1

10.46.50

9.88-10.92

10.49*

10.44

10.6494.889.3

34.5

36.7

16.3

$161,8611,06641.8

11.90.27

11.41-12.75

11.76

$350,8674814.8

9.821.09

8.05-10.65

11.03

9.99

*

8.40

63.980.8

26.1

19.9**37.8

$238,1502632.6

9.17.70

8.05-9.98

10.04*10.06*8.40

53.399.2

17.4*

55.8



4.23—ContinuedC. Loans to Farmers14—Continued

Characteristic

Percentage of amount of loans13 With floating rates . . . . .

16 Other livestock

20 Other


All sizes

50.537.6

40.28.9

33.410.23.4

3.7

$1-9

48.238.6

20.76.3

60.56.7

4.4

$10-24

35.335.5

23.4#

53.910.6

*

5.5

$25-49

38.128.1

49.7*

26.2

*

*

$50-99

45.943.6

53.3*

25.3**

*

$100-249

52.337,6

50.8****

*

$250and over

* Data for November 2-6,1987 should have appeared in the May 1988 issue butmore current data were published in that issue.

Fewer than 10 sample loans.1. The survey of terms of bank lending to business collects data on gross loan

extensions made during the first full business week in the mid-month of eachquarter by a sample o f 340 commercial banks of all sizes. A subsample of 250banks also report loans to farmers. The sample data are blown up to estimate thelending terms at all insured commercial banks during that week. The estimatedterms of bank lending are not intended for use in collecting the terms of loansextended over the entire quarter or residing in the portfolios of those banks.Construction and land development loans include both unsecured loans and loanssecured by real estate. Thus, some of the construction and land developmentloans would be reported on the statement of condition as real estate loans and theremainder as business loans. Mortgage loans, purchased loans, foreign loans, andloans of less than $1,000 are excluded from the survey.

As of Dec. 31,1987, assets of most of the large banks were at least $6.0 billion.For all insured banks total assets averaged $220 million.

2. Beginning with the August 1986 survey respondent banks provide informa-tion on the type of base rate used to price each commercial and industrial loanmade during the survey week. This reporting change is reflected in the newcolumn on the most common base pricing rate in table A and footnote 13 fromtable B.

3. Average maturities are weighted by loan size and exclude demand loans.4. Effective (compounded) annual interest rates are calculated from the stated

rate and other terms of the loan and weighted by loan size.5. The chances are about two out of three that the average rate shown would

differ by less than this amount from the average rate that would be found byacomplete survey of lending at all banks.

6. The interquartile range shows the interest rate range that encompasses themiddle 50 percent of the total dollar amount of loans made.

7. The most common base rate is that rate used to price the largest dollarvolume of loans. Base pricing rates include the prime rate (sometimes referred toas a bank's "basic" or "reference" rate); the federal funds rate; domestic moneymarket rates other than the federal funds rate; foreign money market rates', andother base rates not included in the foregoing classifications.

8. Overnight loans are loans that mature on the following business day.9. Demand loans have no stated date of maturity.10. Nominal (not compounded) annual interest rates are calculated from survey

data on the stated rate and other terms of the loan and weighted by loan size.11. The prime rate reported by each bank is weighted by the volume of loans

extended and then averaged.12. The proportion of loans made at rates below prime may vary substantially

from the proportion of such loans outstanding in banks' portfolios.13. 58.5 percent of construction and land development loans were priced

relative to the prime rate.14. Among banks reporting loans to farmers (Table C), most "large banks"

(survey strata 1 to 3) had over $600 million in total assets, and most "other banks"(survey strata 4 to 6) had total assets below $600 million.

The survey of terms of bank lending to fanners now includes loans secured byfarm real estate. In addition, the categories describing the purpose of farm loanshave now been expanded to include purchase or improve farm real estate." (nprevious surveys, the purpose of such loans was reported as "other."


4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1988Millions of dollars

All states2

Totalincluding

IBFsIBFsonly5

New York

Totalincluding

IBFsIBFsonly3

California

Totalincluding

IBFsIBFsonly3

Illinois

Totalincluding

IBFsIBFsonly3

1 Total assets*

2 Claims on nonrelated parties3 Cash and balances due from depository institutions4 Cash items in process of collection and unposted

debits5 Currency and coin (U.S. and foreign)6 Balances with depository institutions in United States7 U.S. branches and agencies of other foreign banks

(including their IBFs)8 Other depository institutions in United States

(including their IBFs)9 Balances with banks in foreign countries and with

foreign central banks10 Foreign branches of U.S. banks11 Other banks in foreign countries and foreign central

banks12 Balances with Federal Reserve Banks

13 Total securities and loans

14 Total securities, book value15 U.S. Treasury16 Obligations of U.S. government agencies and

corporations17 Other bonds, notes, debentures and corporate stock

(including state and local securities)

18 Federal funds sold and securities purchased underagreements to resell

19 U.S branches and agencies of other foreign banks . . . .20 Commercial banks in United States21 Other

22 Total loans, gross23 Less: Unearned income on loans24 Equals: Loans, net

Total loans, gross, Ay category25 Real estate loans26 Loans to depository institutions27 Commercial banks in United States (including IBFs) .28 U.S. branches and agencies of other foreign banks .29 Other commercial banks in United States30 Other depository institutions in United States

(including IBFs)31 Banks in foreign countries32 Foreign branches of U.S. banks33 Other banks in foreign countries34 Other financial institutions

35 Commercial and industrial loans36 U.S. addressees (domicile)37 Non-U.S. addressees (domicile)38 Acceptances of other banks39 U.S. banks40 Foreign banks41 Loans to foreign governments and official institutions

(including foreign central banks)42 Loans for purchasing or carrying securities

(secured and unsecured)43 All other loans

44 All other assets45 Customers' liability on acceptances outstanding46 U.S. addressees (domicile)47 Son-V.S. addressees (domicile)48 Other assets including other claims on nonrelated

parties49 Net due from related depository institutions3

50 Net due from head office ana other related depositoryinstitutions'

51 Net due from establishing entity, head offices,and other related depository institutions5

52 Total liabilities4

53 Liabilities to nonrelated parties

460,746

419,609106,193

73125

57,318

50,374

6,94446,163

1,743

44,4201,956

254,595

34,4046,632

3,763

24,008

14,7299,3001,8953,534

220,430238

220,191

15,02664,82133,33027,5725,758

7531,416

77530,6415,898

110,69288,63822,054

914278636

18,016

2,8132,250

44,09227,77517,21310,563

16,31641,137

41,137

n.a.

460,746

402,754

222,471

187,73688,066

0n.a.

42,886

40,234

2,652

45,1801,664

43,516n.a.

90,892

9,804n.a.

n.a.

9,804

2,3101,527550232

81,195107

81,088

17044,73315,61814,622

996

1629,099

65828,4411,025

18,8511,65917,192

10010

16,151

30226

6,467n.a.n.a.n.a.

6,46734,735

n.a.

34,735

222,471

198,831

335,779

308,73186,773

1945,530

39,920

5,610

38,7751,469

37,3061,762

175,892

27,6036,254

3,724

17,624

13,1767,9761,7773,424

148,414125

148,289

7,66646,97822,97317,7605,212

1123,994

67423,3203,897

69,30451,45217,852

733217517

15,855

2,2641,717

32,88919,71610,0829,634

13,17327,048

27,048

n.a.

335,779

306,753

173,744

148,44371,581

0n.a.

33,661

31,254

2,407

37,9201,404

36.516n.a.

70,124

7,436n.a.

n.a.

7,436

1,676948550178

62,73244

62,688

13531,0459,0368,297739

722,002

55821,445

932

16,0761,61214,464

505

14,362

27151

5,061n.a.n.a.n.a.

5,06125,301

n.a.

25,301

173,744

157,376

71,539

62,58210,415

22

6,390

5,898

492

3,952107

3,84549

42,213

4,391179

38

4,174

1,0179602334

37,923102

37,822

3,21812,8967,9607,560400

154,920

464,874841

19,09716,4042,69414941108

1,074

513135

8,9386,8776,199678

2,0618,957

8,957

n.a.

71,539

64,509

32,643

26,4469,716

0n.a.5,774

5,647

127

3,943106

3,837n.a.

15,222

1,997n.a.

n.a.

1,997

44944900

13,28763

13,225

2910,0755,3045,133172

04,771

464,726

47

2,05445

2,00900

1,027

055

1,058n.a.n.a.n.a.

1,0586,197

n.a.

6,197

32,643

28,940

30,208

30,2086,713

42

4,274

3,682

5912,378112

2,26755

21,768

1,294129

0

1,166

81451620

20,4806

20,473

2,0043,4502,1552,047109

251,270

551,215751

13,80313,337

466505

228

0238

1,64687484133

7720

n.a.

30,208

17,538

9,316

8,9185,269

0n.a.2,914

2,829

85

2,355107

2,248n.a.

3,322

261n.a.

n.a.

261

23220

3,0610

3,061

2,4271,1831,098

85

01,244

551,189

28

3910

391505

210

00

304n.a.n.a.n.a.

304398

n.a.

398

9,316

6,253

U.S. Branches and Agencies A83

4.30—ContinuedMillions of dollars

Item

All states2

Totalexcluding

IBFs

IBFsonly'

New York

Totalexcluding

IBFsIBFsonly3

California

Totalexcluding

IBFs

IBFsonly3

Illinois

Totalexcluding

IBFs

IBFsonly3

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 IBFs)59 U.S. branches and agencies of other foreign banks60 Other commercial banks in United States61 Banks in foreign countries62 Foreign branches of U.S. banks63 Other banks in foreign countries64 Foreign governments and official institutions

(including foreign central banks)65 All other deposits and credit balances66 Certified and official checks

67 Transaction accounts and credit balances(excluding IBFs)

68 Individuals, partnerships, and corporations69 U.S. addressees (domicile)70 Non-U.S. addressees (domicile)71 Commercial banks in United States (including IBFs)72 U.S. branches and agencies of other foreign banks73 Other commercial banks in United States74 Banks in foreign countries75 Foreign branches of U.S. banks76 Other banks in foreign countries77 Foreign governments and official institutions


80 Demand deposits (included in transaction accountsand credit balances)

81 Individuals, partnerships, and corporations82 U.S. addressees (domicile)83 Non-U.S. addressees (domicile)84 Commercial banks in United States (including IBFs)85 U.S. branches and agencies of other foreign banks86 Other commercial banks in United States87 Banks in foreign countries88 Foreign branches of U.S. banks89 Other banks in foreign countries . . . '90 Foreign governments and official institutions


93 Non-transaction accounts (including MMDAs,excluding IBFs)

94 Individuals, partnerships, and corporations95 U.S. addressees (domicile)% Non-U.S. addressees (domicile)97 Commercial banks in United States (including IBFs)98 U.S. branches and agencies of other foreign banks99 Other commercial banks in United States

100 Banks in foreign countries101 Foreign branches of U.S. banks102 Other banks in foreign countries103 Foreign governments and official institutions

(including foreign central banks)104 All other deposits and credit balances

105 IBF deposit liabilities106 Individuals, partnerships, and corporations107 U.S. addressees (domicile)108 Non-U.S. addressees (domicile)109 Commercial banks in United Stales (including IBFs)110 U.S. branches and agencies of other foreign banks111 Other commercial banks in United States112 Banks in foreign countries113 Foreign branches of U.S. banks114 Other banks in foreign countries115 Foreign governments and official institutions

(including foreign central banks)116 All other deposits and credit balances

60,68746,95936,23010,7298,7403,0455,6952,078299

1,779

1,103909899

6,3603,7662,2791,48721663152990106885

362127

5,4373,1921,9451,24711610

10582980749

31487899

54,32743,19333,9519,2418,5242,9825,5421,088193894

741782

152,48212,984

9312,89251,48342,7458,73977,9247,65570,269

10,02961

n.a.

152,48212,984

9312,89251,48342,7458,73977,9247,65570,269

10,02961

50,34937,52330,5386,9848,1702,5705,5991,985299

1,686

990846836

5,2092,8481,7591,08920363140923106818

284115836

4,5962,5741,589985105109576480684

23680836

45,14034,67528,7795,8967,9672,5085,4601,061193

706731

135,7888,673

738,60045,19637,2027,99472,1706,73665,434

9,68961

n.a.

135,7888,673

738,60045,19637,2027,99472,1706,73665,434

9,68961

2,1362,028550

1,47821

19019

174723

26322917258100909

23

1781451024300080

1,8731,799378

1,42021110010

15

47

8,5304520

4524,3283,847481

3,664551

3,113

860

8,5304520

4524,3283,847481

3,664551

3,113

860

2,9312,3722,16920353947366101

2215

2171971934000101

2115

202182179400010I

2115

2,7152,1751,97620053947366000

01

3,144461828

1,5151,301215

1,552281

1,271

300

n.a.

3,144461828

1,5151,301215

1,552281

1,271

300



4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 19881—ContinuedMillions of dollars

Item

All states2

Totalincluding

IBFs

IBFsonly3

New York

Totalincluding

IBPs

IBFsonly3

California

Totalincluding

IBFs

IBFsonly3

Illinois

Totalincluding

IBFs

IBFsonly3

117 Federal funds purchased and securities sold underagreements to repurchase

118 U.S. branches and agencies of other foreign banks . . .119 Other commercial banks in United States120 Other121 Other borrowed money122 Owed to nonrelated commercial banks in United States

(including IBFs)123 Owed to U.S. offices of nonrelated U.S. banks124 Owed to U.S. branches and agencies of

nonrelated foreign banks123 Owed to nonrelated banks in foreign countries126 Owed to foreign branches of nonrelated U.S. banks . .127 Owed to foreign offices of nonrelated foreign banks.. .128 Owed to others

129 All other liabilities130 Branch or agency liability on acceptances executed

and outstanding131 Other liabilities to nonrelated parties

132 Net due to related depository institutions3

133 Net due to head office and other relateddepository institutions3

134 Net due to establishing entity, head office, and otherrelated depository institutions3

MEMO133 Non-interest bearing balances with commercial banks

in United States136 Holding of commercial paper included in total loans . . . .137 Holding of own acceptances included in commercial

and industrial loans138 Commercial and industrial loans with remaining maturity

of one year or less139 Predetermined interest rates140 Floating interest rates141 Commercial and industrial loans with remaining maturity

of more than one year142 Predetermined interest rates143 Floating interest rates

46,9449,781

20,39416,76998,204

64,27327,105

37,16820,5422,767

17,77513,389

44,438

31,69512,743

57,992

57,992

1,490628

3,033

61,34938,96122,388

49,34316,14233,201

2,393893386

1,11438,421

16,6012,534

14,06719,8172,686

17,1312,003

5,535

n.a.

5,535

23,640

n.a.

23,640

23

34,8907,060

12,89914,93153,263

33,13616,623

16,51310,2241,0449,1809,904

32,463

21,75410,708

29,026

29,026

1,241

437

1,876

35,48621,40814,078

33,81810,15023,668

1,516355345816

15,573

4,094719

3,3759,611967

8,6441,868

4,499

n.a.4,499

16,368

n.a.

16,368

8,6742,2165,1201,337

35,199

24,7177,592

17,1267,8921,4296,4642,590

9,969

8,6451,324

7,030

7,030

140113

850

11,4578,0283,429

7,6403,550

68846141186

18,953

11,0101,419

9,5917,8631,4296,434

80

769

n.a.769

3,704

n.a.

3,704

2,827352

2,107367

7,232

4,5162,061

2,4551,951248

1,703765

1,403

893510

12,670

12,670

5170

138

9,1086,2772,831

4,6951,8062,889

6500

652,829

860106

7541,923248

1,67545

216

n.a.216

3,063

n.a.

3,063

U.S. Branches and Agencies A85

4.30—ContinuedMillions of dollars

Item

144 Components of total nontransaction accounts,included in total deposits and credit balances ofnontransactional accounts, including IBFs

145 Time CDs in denominations of $100,000 or more146 Other time deposits in denominations of $100,000

or more147 Time CDs in denominations of $100,000 or more

with remaining maturity of more than

148 Market value of securities held149 Immediately available ftinds with a maturity greater than

one day included in other borrowed money

150 Number of reports filed*

All states1

Totalexcluding

IBFs

70,84140,316

9,890

20,636

IBFsonly'

iAll states2

Totalincluding

IBFs

32,809

59,437

510

IBFsonly3

9,388

n.a.

New York

Totalexcluding

IBFs

61,96233,703

8,838

19,422

IBFsonly'

INew York

Totalincluding

IBFs

26,473

30,748

231

IBFsonly3

7,221

n.a.

California

Totalexcluding

IBFs

1,6581,077

518

64

IBFsonly3

}California

Totalincluding

IBFs

4,012

24,608

124

IBFsonly3

1,829

n.a.

Illinois

Totalexcluding

IBFs

2,9352,073

393

470

IBFsonly'

1Illinois

Totalincluding

IBFs

1,229

2,775

51

IBFsonly3

228

n.a.

_ . . . d o n the quarterly form FFIEC 002,"Report of Assets and Liabilities of U.S. Branches and Agencies of ForeignBanks." 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 FR 886a report. Aggregate data from that reportwere available through the Federal Reserve statistical release G. 11, last issued onJuly 10,1980. Data in this table and in the 0.11 tables are not strictly comparablebecause of differences in reporting panels and in deflnitions of balance sheetitems.

2. Includes the District of Columbia.3. Effective December 1981, the Federal Reserve Board amended Regulations

D and Q to permit banking offices located in the United States to operateInternational Banking Facilities (IBPs). As of December 31, 1985, data for IBFsare 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 IBF data are reported for that item, either because the item is not aneligible IBF asset or liability or because that level of detail is not reported forIBFs. From December 1981 through September 1985, IBF data were included inall applicable items reported.

4. Total assets and total liabilities include net balances, if any, due from or dueto related banking institutions in the United States and in foreign countries (seefootnote 5). On the former monthly branch and agency report, available throughthe O.I 1 statistical release, gross balances were included in total assets and totalliabilities. Therefore, total asset and total liability figures in this table are notcomparable to those in the O.ll tables.

5. "Related banking institutions" includes the foreign head office and otherU.S. and foreign branches and agencies of the bank, the bank's parent holdingcompany, and majority-owned banking subsidiaries of the bank and of its parentholding company (including subsidiaries owned both directly and indirectly).

6. In some cases two or more offices of a foreign bank within the samemetropolitan area Ale a consolidated report.

A86

Federal Reserve Board of GovernorsALAN GREENSPAN, ChairmanMANUEL H. JOHNSON, Vice Chairman

MARTHA R. SEGERWAYNE D. ANGELL

OFFICE OF BOARD MEMBERS

JOSEPH R. COYNE, Assistant to the BoardDONALD J. WINN, Assistant to the BoardLYNN SMITH FOX, Special Assistant to the BoardBOB STAHLY MOORE, Special Assistant to the Board

LEGAL DIVISION

MICHAEL BRADFIELD, General CounselJ. VIRGIL MATTINOLY, JR., Deputy General CounselRICHARD M. ASHTON, Associate General CounselOLIVER IRELAND, Associate General CounselRlCKl R. TIOERT, Assistant General CounselMARYELLEN A. BROWN, Assistant to the General Counsel

OFFICE OF THE SECRETARY

WILLIAM W. WILES, SecretaryBARBARA R. LOWREY, Associate SecretaryJAMES MCAFEE, Associate Secretary

DIVISION OF CONSUMERAND COMMUNITY AFFAIRS

GRIFFITH L. GARWOOD, DirectorGLENN E. LONEY, Assistant DirectorELLEN MALAND, Assistant DirectorDOLORES S. SMITH, Assistant Director

DIVISION OF BANKINGSUPERVISION AND REGULATION

WILLIAM TAYLOR, Staff DirectorDON E. KLINE, Associate DirectorFREDERICK M. STRUBLE, Associate DirectorWILLIAM A. RYBACK, Deputy Associate DirectorSTEPHEN C. SCHEMERINO, Deputy Associate DirectorRICHARD SPILLENKOTHEN, Deputy Associate DirectorHERBERT A. BIERN, Assistant DirectorJOE M. CLEAVER, Assistant DirectorROGER T. COLE, Assistant DirectorJAMES I. GARNER, Assistant DirectorJAMES D. GOETZINGER, Assistant DirectorMICHAEL G. MARTINSON, Assistant DirectorROBERT S. PLOTKIN, Assistant DirectorSIDNEY M. SUSSAN, Assistant DirectorLAURA M. HOMER, Securities Credit Officer

DIVISION OF INTERNATIONAL FINANCE

EDWIN M. TRUMAN, Staff DirectorLARRY J. PROMISEL, Senior Associate DirectorCHARLES J. SIEGMAN, Senior Associate DirectorDAVID H. HOWARD, Deputy Associate DirectorROBERT F. GEMMILL, Staff AdviserDONALD B. ADAMS, Assistant DirectorPETER HOOPER III, Assistant DirectorKAREN H. JOHNSON, Assistant DirectorRALPH W. SMITH, JR., Assistant Director

DIVISION OF RESEARCH AND STATISTICS

MICHAEL J. PRELL, DirectorEDWARD C. ETTIN, Deputy DirectorJARED J. ENZLER, Associate DirectorTHOMAS D. SIMPSON, Associate DirectorLAWRENCE SLIFMAN, Associate DirectorELEANOR J. STOCKWELL, Associate DirectorMARTHA BETHEA, Deputy Associate DirectorPETER A. TINSLEY, Deputy Associate DirectorMARK N. GREENE, Assistant DirectorMYRON L. KWAST, Assistant DirectorSUSAN J. LEPPER, Assistant DirectorMARTHA S. SCANLON, Assistant DirectorDAVID J. STOCKTON, Assistant DirectorJOYCE K. ZICKLER, Assistant DirectorLEVON H. GARABEDIAN, Assistant Director

(Administration)

DIVISION OF MONETARY AFFAIRS

DONALD L. KOHN, DirectorDAVID E. LINDSEY, Deputy DirectorBRIAN F. MADIGAN, Assistant DirectorRICHARD D. PORTER, Assistant DirectorNORMAND R.V. BERNARD, Special Assistant to the Board

OFFICE OF THE INSPECTOR GENERAL

BRENT L. BOWEN, Inspector General

and Official Staff

A87

H. ROBERT HELLEREDWARD W. KELLEY, JR.

JOHN P. LA WARE

OFFICE OFSTAFF DIRECTOR FOR MANAGEMENT

S. DAVID FROST, Staff DirectorEDWARD T. MULRENIN, Assistant Staff DirectorPORTIA W. THOMPSON, Equal Employment Opportunity

Programs Officer

DIVISION OF HUMAN RESOURCESMANAGEMENT

DAVID L. SHANNON, DirectorJOHN R. WEIS, Associate DirectorANTHONY V. DtGioiA, Assistant DirectorJOSEPH H. HAYES, JR., Assistant DirectorFRED HOROWITZ, Assistant Director

OFFICE OF THE CONTROLLER

GEORGE E. LIVINGSTON, ControllerSTEPHEN J. CLARK, Assistant Controller (Programs and

Budgets)DARRELL R. PAULEY, Assistant Controller (Finance)

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. ZEMEL, Assistant Director

DIVISION OF APPLICATIONS DEVELOPMENT ANDSTATISTICAL SERVICES

OFFICE OF STAFF DIRECTOR FORFEDERAL RESERVE BANK ACTIVITIES

THEODORE E. ALLISON, Staff Director

DIVISION OF FEDERAL RESERVEBANK OPERATIONS

CLYDE H. FARNSWORTH, JR., DirectorELLIOTT C. MCENTEE, 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 DirectorLOUISE L. ROSEMAN, Assistant DirectorFLORENCE M. YOUNG, Adviser

WILLIAM R. JONES, DirectorDAY W. RADEBAUGH, Assistant DirectorRICHARD C. STEVENS, Assistant DirectorPATRICIA A. WELCH, Assistant Director

A88 Federal Reserve Bulletin D September 1988

Federal Open Market CommitteeFEDERAL OPEN MARKET COMMITTEE

MEMBERS

ALAN GREENSPAN, Chairman

WAYNE D. ANGELLROBERT P. BLACKROBERT P. FORRESTAL

H. ROBERT HELLERW. LEE HOSKINSMANUEL H. JOHNSON

E. GERALD CORRIOAN, Vice Chairman

EDWARD W. KELLEY, JR.ROBERT T. PARRYMARTHA R. SEOER

ROGER GUFFEYSILAS KEEHN

ALTERNATE MEMBERS

THOMAS C. MELZERFRANK E. MORRIS

JAMES H. OLTMAN

STAFF

DONALD L. KOHN, Secretary and EconomistNORMAND R.V. BERNARD, Assistant SecretaryMICHAEL BRADFIELD, General CounselERNEST T. PATRIKIS, Deputy General CounselMICHAEL J. PRELL, EconomistEDWIN M. TRUMAN, EconomistJOHN H. BEEBE, Associate EconomistJ. ALFRED BROADDUS, JR., Associate Economist

JOHN M. DAVIS, Associate EconomistRICHARD G. DAVIS, Associate EconomistDAVID E. LINDSEY, Associate EconomistCHARLES J. SIEGMAN, Associate EconomistTHOMAS D. SIMPSON, Associate EconomistLAWRENCE SLIFMAN, Associate EconomistSHEILA L. TSCHINKEL, Associate Economist

PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market AccountSAM Y. CROSS, Manager for Foreign Operations, System Open Market Account

FEDERAL ADVISORY COUNCIL

CHARLES T. FISHER, HI, President

BENNETT A. BROWN, Vice President

J. TERRENCE MURRAY, First DistrictWILLARD C. BUTCHER, Second DistrictSAMUEL A. MCCULLOUGH, Third DistrictTHOMAS H. O'BRIEN, Fourth DistrictFREDERICK DEANE, JR., Fifth DistrictBENNETT A. BROWN, Sixth District

CHARLES T. FISHER, III, Seventh DistrictDONALD N. BRANDIN, Eighth DistrictDEWALT H. ANKENY, Jr., Ninth DistrictF. PHILLIPS GILTNER, Tenth DistrictT. C. FROST, Eleventh DistrictPAUL HAZEN, Twelfth District

HERBERT V. PROCHNOW, Secretary

WILLIAM J. KORSVIK, Associate Secretary

A89

and Advisory CouncilsCONSUMER ADVISORY COUNCIL

STEVEN W. HAMM, Columbia, South Carolina, ChairmanEDWARD J. WILLIAMS, Chicago, Illinois, Vice Chairman

NAOMI G. ALBANESE, Greensboro, North CarolinaSTEPHEN BROBECK, Washington, D.C.EDWIN B. BROOKS, JR., Richmond, VirginiaJUDITH N. BROWN, Edina, MinnesotaMICHAEL S. CASSIDY, New York, New YorkBETTY TOM CHU, Arcadia, CaliforniaJERRY D. CRAFT, Atlanta, GeorgiaDONALD C. DAY, Boston, MassachusettsRICHARD B. DOBY, Denver, ColoradoRICHARD H. FINK, Washington, D.C.NEIL J. FOGARTY, Jersey City, New JerseySTEPHEN GARDNER, Dallas, TexasKENNETH A. HALL, Picayune, MississippiELENA G. HANOGI, Little Rock, Arkansas

ROBERT A. HESS, Washington, D.C.ROBERT J. HOBBS, Boston, MassachusettsRAMON E. JOHNSON, Salt Lake City, UtahROBERT W. JOHNSON, West Lafayette, IndianaA. J. (JACK) KING, Kalispell, MontanaJOHN M. KOLESAR, Cleveland, OhioALAN B. LERNER, Dallas, TexasRICHARD L. D. MORSE, Manhattan, KansasWILLIAM E. ODOM, Dearborn, MichiganSANDRA R. PARKER, Richmond, VirginiaSANDRA PHILLIPS, Pittsburgh, PennsylvaniaJANE SHULL, Philadelphia, PennsylvaniaRALPH E. SPURGIN, Columbus, OhioLAWRENCE WINTHROP, Portland, Oregon

THRIFT INSTITUTIONS ADVISORY COUNCIL

JAMIE J. JACKSON, Houston, Texas, PresidentGERALD M. CZARNECKI, Honolulu, Hawaii, Vice President

ROBERT S. DUNCAN, Hattiesburg, MississippiBETTY GREGG, Phoenix, ArizonaTHOMAS A. KINST, Hoffman Estates, IllinoisRAY MARTIN, LOS Angeles, CaliforniaJOE C. MORRIS, Emporia, Kansas

JOSEPH W. MOSMILLER, Baltimore, MarylandJANET M. PAVLISKA, Arlington, MassachusettsLouis H. PEPPER, Seattle, WashingtonWILLIAM G. SCHUETT, Milwaukee, WisconsinDONALD B. SHACKELFORD, Columbus, Ohio

A90

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Consumer Handbook on Adjustable Rate MortgagesConsumer Handbook to Credit Protection LawsFair Credit BillingFederal Reserve GlossaryA Guide to Business Credit and the Equal Credit Opportunity

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A91

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128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER-VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar-garet L. Greene. October 1984. 40 pp. Out of print.

129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER-VENTION: OCTOBER 1980-OcTOBER 1981, by MargaretL. Greene. August 1984. 36 pp.

130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTER-NATIONAL TRADE AND OTHER ECONOMIC VARIABLES:A REVIEW OF THE LITERATURE, by Victoria S. Farrellwith Dean A. DeRosa and T. Ashby McCown. January1984. Out of print.

131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR-DEUTSCHE MARK INTERVENTION, by Laurence R. Ja-cobson. October 1983. 8 pp.

132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEENEXCHANGE RATES AND INTERVENTION: A REVIEW OFTHE TECHNIQUES AND LITERATURE, by Kenneth Ro-goff. October 1983. 15 pp.

133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVEN-TION, AND INTEREST RATES: A N EMPIRICAL INVESTI-

GATION, by Bonnie E. Loopesko. November 1983. Outof print.

134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKETINTERVENTION: A REVIEW OF THE LITERATURE, byRalph W. Tryon. October 1983. 14 pp. Out of print.

135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKETINTERVENTION: APPLICATIONS TO CANADA, GERMANY,AND JAPAN, by Deborah J. Danker, Richard A. Haas,Dale W. Henderson, Steven A. Symansky, and RalphW. Tryon. April 1985. 27 pp. Out of print.

136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECON-OMY, by Darrell Cohen and Peter B. Clark. January1984. 16 pp. Out of print.

137. THE IMPLICATIONS FOR BANK MERGER POLICY OFFINANCIAL DEREGULATION, INTERSTATE BANKING,AND FINANCIAL SUPERMARKETS, by Stephen A.Rhoades. February 1984. Out of print.

138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDELINES,AND THE LIMITS OF CONCENTRATION IN LOCAL BANK-ING MARKETS, by James Burke. June 1984. 14 pp. Outof print.

139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS INTHE UNITED STATES, by Thomas D. Simpson andPatrick M. Parkinson. August 1984. 20 pp.

140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OFTHE LITERATURE, by John D. Wolken. November 1984.38 pp. Out of print.

141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAY-MENT COSTS, by William Dudley. November 1984.15 pp. Out of print.

142. MERGERS AND ACQUISITIONS BY COMMERCIAL BANKS,1960-83, by Stephen A. Rhoades. December 1984. 30pp. Out of print.

143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF THEELECTRONIC F U N D TRANSFER ACT: RECENT SURVEYEVIDENCE, by Frederick J. Schroeder. April 1985. 23pp. Out of print.

144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON-SUMER CREDIT REGULATIONS: THE TRUTH IN LENDINGAND EQUAL CREDIT OPPORTUNITY LAWS, by GregoryE. Elliehausen and Robert D. Kurtz. May 1985. 10 pp.

145. SERVICE CHARGES AS A SOURCE OF BANK INCOME ANDTHEIR IMPACT ON CONSUMERS, by Glenn B. Canner andRobert D. Kurtz. August 1985. 31 pp. Out of print.

146. THE ROLE OF THE PRIME RATE IN THE PRICING OFBUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, byThomas F. Brady. November 1985. 25 pp.

147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN-DEXES OF THE MONETARY AGGREGATES, by Helen T.Fair and Deborah Johnson. December 1985. 42 pp.

148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THEECONOMIC RECOVERY TAX ACT: SOME SIMULATIONRESULTS, by Flint Brayton and Peter B. Clark. Decem-ber 1985. 17 pp.

149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS INBANKING BEFORE AND AFTER ACQUISITION, by StephenA. Rhoades. April 1986. 32 pp.

150. STATISTICAL COST ACCOUNTING MODELS IN BANKING:A REEXAMINATION AND AN APPLICATION, by John T.Rose and John D. Wolken. May 1986. 13 pp.

151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRIC-ING FROM 1983 THROUGH 1985, by Patrick I. Mahoney,Alice P. White, Paul F. O'Brien, and Mary M.McLaughlin. January 1987. 30 pp.

152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A

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REVIEW OF THE LITERATURE, by Mark J. Warshawsky.April 1987. 18 pp.

153. STOCK MARKET VOLATILITY, by Carolyn D. Davis andAlice P. White. September 1987. 14 pp.

154. THE EFFECTS ON CONSUMERS AND CREDITORS OF PRO-POSED CEILINGS ON CREDIT CARD INTEREST RATES, byGlenn B. Canner and James T. Fergus. October 1987. 26pp.

155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J.Warshawsky. November 1987. 25 pp.

156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANK-ING MARKETS, by James V. Houpt. May 1988. 47 pages.

REPRINTS OF BULLETIN ARTICLES

Most of the articles reprinted do not exceed 12 pages.

Limit of 10 copiesForeign Experience with Targets for Money Growth. 10/83.

Intervention in Foreign Exchange Markets: A Summary ofTen Staff Studies. 11/83.

A Financial Perspective on Agriculture. 1/84.Survey of Consumer Finances, 1983. 9/84.

Bank 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 Exchange 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.Measuring the Foreign-Exchange Value of the Dollar. 6/87.Changes in Consumer Installment Debt: Evidence from the

1983 and 1986 Surveys of Consumer Finances. 10/87.U.S. International Transactions in 1987. 5/88.Home Equity Lines of Credit. 6/88.

A93

Index to Statistical TablesReferences are to pages A3-A85 although the prefix "A" is omitted in this index

ACCEPTANCES, bankers (See Bankers acceptances)Agricultural loans, commercial banks, 19, 20,74, 80Assets 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, 82-85Nonfinancial 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, 82-89Business 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, 70-72, 76-78, 82Weekly reporting banks, 19-21

Commercial banksAssets and liabilities, 18-20Commercial and industrial loans, 16, 18, 19,20, 21,

70-72, 76-78Consumer loans held, by type, and terms, 40, 41Loans sold outright, 19Nondeposit funds, 17Real estate mortgages held, by holder and property, 39Terms of lending, 70-75,76-81Time and savings deposits, 3

Commercial paper, 23, 24, 37Condition statements (See Assets and liabilities)Construction, 44, 49, 73, 79Consumer 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 ana 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, 76-79Foreign 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

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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, 24Commercial banks, 70-75, 76-81Consumer installment credit, 41Federal Reserve Banks, 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)

Banks, by classes, 18, 19, 20, 21, 26Commercial banks, 3, 16, 18-20, 39Federal Reserve Banks, 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, 70-75, 76-81FederaJ 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

OPEN 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)Secunties (See also 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 (See 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, 54Treasury cash, Treasury currency, 4Treasury deposits, 4, 10, 28Treasury operating balance, 28

UNEMPLOYMENT, 45U.S. government balances

Commercial bank holdings, 18, 19, 20Treasury deposits at Reserve Banks, 4, 10, 28

U.S. government securitiesBank holdings, 18-20, 21, 30Dealer transactions, positions, and financing, 32Federal Reserve Bank holdings, 4, 10, 11, 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)

A96

The Federal Reserve SystemBoundaries of Federal Reserve Districts and Their Branch Territories

LEGEND

^~" 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

A95

Federal Reserve Banks, Branches, and OfficesFEDERAL RESERVE BANK Chairman President Vice Presidentbranch, or facility Zip Deputy Chairman First Vice President in charge of branchBOSTON* 02106 George N. Hatsopoulos Frank E. Morris

Richard N. Cooper Robert W. Eisenmenger

NEW YORK* 10045 John R. Opel E. Gerald CorriganTo be announced James H. Oltman

Buffalo 14240 Mary Ann Lambertsen John T. Keane

PHILADELPHIA 19105 Nevius M. Curtis Edward G. BoehnePeter A. Benoliel William H. Stone, Jr.

CLEVELAND* 44101 Charles W. Parry W. Lee HoskinsJohn R. Miller William H. Hendricks

Cincinnati 45201 Owen B. Butler Charles A. Cerino1

Pittsburgh 15230 James E. Haas Harold J. Swart1

RICHMOND* 23219 Robert A. Georgine Robert P. BlackHanne M. Merriman Jimmie R. Monhollon

Baltimore 21203 Thomas R. Shelton Robert D. McTeer, Jr.1Charlotte 28230 G. Alex Bernhardt Albert D. Tinkelenberg'Culpeper Communications John G. Stoidesand Records Center 22701

ATLANTA 30303 Bradley Currey, Jr. Robert P. ForrestalLarry L. Prince Jack Guynn Delmar Harrison'

Birmingham 35283 Roy D. Terry Fred R. Herr1

Jacksonville 32231 E. William Nash, Jr. James D. Hawkins1

Miami 33152 Sue McCourt Cobb James Curry IIINashville 37203 Condon S. Bush Donald E. NelsonNew Orleans 70161 Sharon A. Perlis Robert J. Musso

CHICAGO* 60690 Robert J. Day Silas KeehnMarcus Alexis Daniel M. Doyle

Detroit 48231 Richard T. Lindgren Roby L. Sloan1

ST. LOUIS 63166 Robert L. Virgil, Jr. Thomas C. MelzerH. Edwin Trusheim James R. Bowen

Little Rock 72203 James R. Rodgers John F. BreenLouisville 40232 Lois H. Gray Howard WellsMemphis 38101 Sandra B. Sanderson Paul I. Black, Jr.

MINNEAPOLIS 55480 Michael W. Wright Gary H. SternJohn A. Rollwagen Thomas E. Gainor

Helena 59601 Marcia S. Anderson Robert F. McNellis

KANSAS CITY 64198 Irvine O. Hockaday, Jr. Roger GuffeyFred W. Lyons, Jr. Henry R. Czerwinski

Denver 80217 James C. Wilson Enis 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 Peyton Yates Sammie C. ClayHouston 77252 Walter M. Mischer, Jr. Robert Smith, III1

San Antonio 78295 Robert F. McDermott Thomas H. Robertson

SAN FRANCISCO 94120 Robert F. Erburu Robert T. ParryCarolyn S. Chambers Carl E. Powell John F. Hoover1

Los Angeles 90051 Richard C. Seaver Thomas C. Warren2

Portland 97208 Paul E. Bragdon Angelo S. Carella1

Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett'Seattle 98124 Carol A. Nygren Gerald R. Kelly1

•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016;Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, WestVirginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.

1. Senior Vice President.2. Executive Vice President.

BULLETI FEDERAL RESERVNE Reserve Bulletin/Federal Reserve Bulletin...maintained their profit margins...

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Transcript of BULLETI FEDERAL RESERVNE Reserve Bulletin/Federal Reserve Bulletin...maintained their profit margins...