Tuesday, June 5, 2018

Monetary interest paid: Domestic: Corporate business: Financial

A FRED search for monetary interest paid turns up 30 series. Look for "financial" in the results, and there are four hits. One of those is for nonfinancial corporate business; I skipped that one. Of the remaining series, one is for financial corporate business, and the other two are the components of that: interest paid "on deposits", and interest paid "on other liabilities".

I took a quick look: Add the interest on "deposits" and "other" together, and they do add up to the number for financial corporate business.

Here's a look at the two parts of financial corporate interest expense, each shown as a percent of the total:

Graph #1: Financial Corporate Business Interest Paid
on Deposits (red) and on Other Liabilities (green)
In the 1960s, 75 to 80 percent of that interest expense was on deposits. Now, 90 percent of it is not on deposits.

This looks like a change that started in the '60s, by the way.

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