The nation's 500 largest commercial banks increased their holdings of municipal bonds by 2.9% in 1993, according to federal banking reports.

The book value of the banks' portfolios reached $35.68 billion, up by a little more than $1 billion. The gain is only the second since 1985, the year before tax reform eliminated the 80% deduction of purchase and carrying costs that banks could take for holding municipals.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.