Federal Reserve Bulletin, 1988-06

VOLUME 74 • NUMBER 6 • JUNE 1988 1 FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost • Griffith L. Garwood • Donald L. Kohn • Michael J. Prell • Edwin M. Truman The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by Mendelle T. Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 361 HOME EQUITY LINES OF CREDIT Proposed concept of same-day payment for checks presented to paying banks by pri- Homeowners have been acquiring and borvate-sector collecting banks; proposed rowing against home equity lines of credit amendment to Regulation T. rapidly during the past two years, and lenders have been marketing the accounts with Revised List of OTC Stocks Subject to increasing vigor. This article describes the Margin Regulations now available. market for these accounts and discusses Admission of four state banks to membertheir risks and benefits for creditors and ship in the Federal Reserve System. consumers. 374 INDUSTRIAL PRODUCTION 383 LEGAL DEVELOPMENTS Industrial production increased an esti- Various bank holding company, bank sermated 0.1 percent in March. vice corporation, and bank merger orders; and pending cases. 376 STATEMENT TO CONGRESS Ai FINANCIAL AND BUSINESS STATISTICS William Taylor, Staff Director, Division of Banking Supervision and Regulation, Board A3 Domestic Financial Statistics of Governors of the Federal Reserve Sys- A44 Domestic Nonfinancial Statistics tem, discusses ongoing supervisory efforts A53 International Statistics to develop a risk-based framework for assessing the capital adequacy of commercial banking organizations and says that bank- A69 GUIDE TO TABULAR PRESENTATION, ing organizations will be stronger and more STATISTICAL RELEASES, AND SPECIAL competitive, and the international banking TABLES system more resistant to financial strains, if bank supervisory authorities from the major A80 BOARD OF GOVERNORS AND STAFF countries cooperate in the establishment of consistent and credible standards for the A82 FEDERAL OPEN MARKET COMMITTEE assessment of bank capital adequacy, be- AND STAFF; ADVISORY COUNCILS fore the House Committee on Banking, Finance and Urban Affairs, April 21, 1988. A84 FEDERAL RESERVE BOARD PUBLICATIONS 381 ANNOUNCEMENTS A87 SCHEDULE OF RELEASE DATES FOR Supervisory policy statement issued. PERIODIC RELEASES Annual report on priced service operations issued. A89 INDEX TO STATISTICAL TABLES Supplement 1 of the Bank Holding Com- A91 FEDERAL RESERVE BANKS, BRANCHES, pany Supervision Manual now available. AND OFFICES Appendix approved for proposed Regulation CC. A92 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Equity Lines of Credit Glenn B. Canner, James T. Fergus, and Charles year-end 1987 Report of Condition made compre- A. Luckett, of the Board's Division of Research hensive information available for the first time and Statistics, prepared this article, with the about the extension of home equity credit by assistance of John P. Ferraro and Patricia A. commercial banks. This article uses this new Boerschig. In preparing the article, the au- information to describe the market for home thors benefited from discussions with, and com- equity accounts and relates the information to ments from, John H. Lindgren, Jr., Richard F. governmental proposals to modify the terms un- DeMong, and Sandra L. Schmidt, of the Center der which such accounts are advanced. for Financial Services Studies, Mclntire School of Commerce, University of Virginia. Notes appear at the end of the article. THE GROWTH AND THE CHARACTERISTICS OF HOME EQUITY ACCOUNTS Prominent among the many innovations in consumer lending offered by financial institutions in Although some consumers reported opening recent years is the home equity line of credit, a their home equity lines of credit as early as 1982, revolving account that allows homeowners to three-fourths of all existing accounts were borrow against the equity in their homes. Unlike opened in 1986 or 1987 (table 1). Balances owed traditional second mortgages, which are ex- on home equity lines are estimated to have tended for a specified period of time and gener- doubled during 1986 to approximately $40-$45 ally require repayment of principal and interest in billion. Recent information suggests that by yearequal monthly installments, home equity ac- end 1987, outstanding balances on home equity counts are ongoing arrangements, often without accounts had risen to about $75 billion. a fixed maturity, that allow the borrower great flexibility in the size and timing of drawdowns Reasons for Rapid Growth and payments. The term "home equity accounts" will be used in this article to refer The fast expansion of borrowing under home exclusively to these new lines of credit and not to equity plans stems from several factors, includtraditional second mortgages or any other type of ing tax revisions affecting the deductibility of account. interest paid on consumer credit, finance rates Consumer surveys indicate that homeowners have been acquiring and borrowing against home 1. Distribution of home equity lines of credit, equity accounts rapidly during the past two by year in which they were established, 1982-87 years, and lenders have been marketing them with increasing vigor. The proliferation of home Year Percent equity accounts has focused attention on the risks as well as the benefits of using this type of 1982 1 1983 3 credit. To learn more about this new credit 1984 9 1985 11 instrument, the Federal Reserve Board spon- 1986 34 1987' 42 sored surveys of consumers in 1987 (see appendix A). The results, along with those from several Total 100 industry-sponsored surveys of financial institu- 1. First 10 months. tions, provide information on the features and SOURCE. For this and subsequent tables, unless otherwise noted, use of home equity accounts. In addition, the University of Michigan, Survey of Consumer Attitudes, March, April, September, and October 1987, Survey Research Center. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 Federal Reserve Bulletin • June 1988 more attractive than for alternative loan prod- 2. Interest rates for home equity lines of credit and ucts, and intensive marketing programs including selected other types of consumer credit, 1984-87' price concessions. Rate (percent, annual average) The Tax Reform Act of 1986 mandates the TTyyppee ooff ccrreeddiitt gradual removal of federal income tax deductions 1984 1985 | 1986 | 1987 currently allowed for interest paid on nonmort- Home equity line of credit 14.0 11.9 10.3 10.2 gage consumer credit. However, within specified Credit card 18.8 18.7 18.3 17.9 limits, such deductions would still be allowed for New car loan (48-month maturity) 13.7 12.9 11.3 10.5 interest paid on loans secured by a home. By Personal loan (24-month maturity) 16.5 15.9 14.8 14.2 raising the after-tax interest cost of consumer credit, the new tax rules encourage homeowners I. The rate shown for home equity accounts is the prime rate plus to substitute home equity loans for other types of 2 percentage points. On average, a bank using a prime rate as its base index adds a margin of nearly 2 percentage points to determine its consumer borrowing. Many creditors have prom- contract rate on the home equity account. The rates shown for other inently featured the tax advantages of home types of credit are those reported by commercial banks. SOURCE. Federal Reserve Board statistical release G.19, February equity loans in their marketing programs. 5, 1988, and FEDERAL RESERVE BULLETIN, tables 1.33 and 1.56, various issues. For the past few years, the interest rates charged on home equity accounts have been 100 percent of the owner's equity in the significantly lower than on most types of con- property.2 Most creditors specify a minimum and sumer credit, especially credit cards (table 2). maximum dollar amount for the credit lines they The relatively attractive finance rates on home offer; in 1987 the average minimum credit line equity accounts have created an incentive for was $5,000, and the average maximum was consumers to use them both for new borrowing $100,000. Nearly all lenders evaluate a consumand to repay debts carrying higher interest rates. er's ability to repay when determining the size of Creditors have intensively promoted home eq- the credit line they will allow; and if a family's uity accounts. In 1986, for example, nearly half income or home equity increases, 90 percent of of all large financial institutions spent more ad- surveyed lenders will increase the size of the vertising dollars on home equity accounts than line. on any other loan product.1 Moreover, creditors Creditors offer customers a variety of ways to have offered substantial inducements to consum- draw on their lines of credit. We estimate that in ers—in the form of low introductory interest rough terms 90 percent of lenders allow access rates or discounted or rebated closing costs—to by check, 20 percent permit telephone transfers, encourage them to establish home equity ac- 13 percent provide access through automatic counts. teller machines, and 9 percent permit access through credit cards. Although creditors rarely Characteristics of Home Equity Accounts place restrictions on the frequency with which credit lines can be drawn down, they often Amounts borrowed under home equity accounts establish a minimum amount for each draw; in are secured by a lien on real estate, usually the 1987 the typical minimum for access by check borrower's principal residence. Consequently, was $300. the creditor may foreclose on the mortgage and The finance rate assessed for balances owed on force a sale of the property if the debt is not most home equity accounts is variable (typically repaid as scheduled. monthly) and is determined by adding a fixed Other features of home equity accounts vary margin to a specified index (table 3). About among creditors. According to a survey spon- three-fourths of creditors use a prime rate as sored by the Consumer Bankers Association (see their selected index, most often the prime rate appendix B), most lenders limit the maximum published in the Wall Street Journal; an addiline of credit to the equivalent of 70 to 80 percent tional 17 percent use the rate on one of several of the homeowner's equity (the appraised value different Treasury bills; and the remainder use of the property less all mortgage indebtedness); other indexes, such as their average cost of funds however, some creditors allow the line to equal or the discount rate established by a Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Equity Lines of Credit 363 3. Pricing of variable-rate home equity lines of credit, 1986 CCrreeddiittoorrss AAvveerraaggee RRaannggee ooff Frequency of interest rate adjustment (percent of creditors) TTyyppee ooff iinnddeexx uussiinngg iinnddeexx mmaarrggiinn ((bbaassiiss mmaarrggiinn ((bbaassiiss ((ppeerrcceenntt)) ppooiinnttss))'' ppooiinnttss))'' Daily Monthly Quarterly Other Prime rate 77 184 0-400 4 69 16 11 Wall Street Journal 47 184 50-300 6 65 21 9 Bank 30 186 0-400 1 77 9 14 Treasury bill rate 17 396 200-550 0 60 33 7 1 year 1 450 400-500 0 33 0 67 6 month 7 397 300-550 0 68 32 0 90 day 8 394 200-550 0 52 43 5 30 day 1 338 325-350 0 100 0 0 Federal Reserve discount rate 2 369 175-500 0 67 17 17 Management discretion 1 75 0-150 0 100 0 0 Other 3 230 138-350 0 75 13 13 1. One hundred basis points equals I percent. Survey, Year-End 1986, conducted by the Center for Financial Serv- SOURCE. John H. Lindgren, Jr., Richard F. DeMong, and Sandra L. ices Studies. Mclntire School of Commerce, University of Virginia Schmidt, Consumer Bankers Association Home Equity Lending (Arlington, Va.: Consumer Bankers Association, n.d.). Reserve Bank. Only about 4 percent of creditors fee. In 1987, 8 percent of large commercial banks who provide home equity accounts offer such and thrift institutions charged no fees, and 68 accounts with a fixed interest rate. percent promoted home equity accounts by Until recently, most home equity accounts waiving fees or crediting them against accrued with variable rates have had no annual or lifetime interest.3 Low introductory interest rates and limit on adjustments to the initial interest rate. rebating of initial fees encourage consumers to However, the Competitive Equality Banking Act establish home equity plans and provide incenof 1987 requires all home equity accounts estab- tives for borrowing right away. Fee waivers, on lished after December 9, 1987, to carry a life-of- the other hand, do not promote immediate use. plan interest rate ceiling; the act does not specify Some lenders assess other fees such as annual any maximum or minimum for this ceiling nor maintenance charges (31 percent of creditors) or any annual restriction on changes in interest transaction fees (about 1 percent of creditors).4 A rates. Only about 10 percent of creditors provide few creditors also charge a fee when an account annual caps on the rate. A few creditors also is terminated or is inactive for a period of time. establish annual or lifetime floors on the finance Most home equity accounts specify a maxirates they charge. mum term for repayment. The duration of such As noted, some creditors have offered a low accounts is usually about 10 to 15 years; howintroductory interest rate to promote their home ever, nearly two-fifths of creditors offer accounts equity accounts. After a specified period of time, with indefinite terms.5 Virtually all agreements the promotional rate reverts to the interest rate permit repayment of outstanding balances at any determined by the formula in the credit contract. time without a penalty. Minimum payments on In the first half of 1987, about 23 percent of larger outstanding balances are nearly always required, financial institutions used such promotions. usually monthly, but the calculation of the mini- Competition among lenders to market home mum varies widely among plans. The minimum equity accounts in 1986 and 1987 caused many of can be a fixed dollar amount, a specified percentthem to absorb some or all of the fees that age of the outstanding balance, or only the interlenders usually charge to open credit accounts est due on the amount owed. A minimum secured by real estate. These charges include monthly payment will not fully amortize the loan origination fees and closing costs for items such by the end of the term under many plans; in such as the title search, property appraisal, credit cases the borrower faces a large end-of-term report, title insurance, and mortgage recording payment ("balloon" payment). In 1987, about 40 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 Federal Reserve Bulletin • June 1988 percent of creditors offering home equity ac- 4. Distribution of homeowners, by status regarding home equity lines of credit, 1987 counts allowed an interest-only monthly payment option. Status regarding Percent home equity account Holds 4 CONSUMER ACCEPTANCE AND USE I OF HOME EQUITY ACCOUNTS Considering 4 Aware of, but not interested ... 71 Not aware of 20 The surge of consumer borrowing through home Total 100 equity accounts is noteworthy for several reasons. First, the rapid increase in such borrowing helps account for the sudden slowdown in the another 1 percent of homeowners had applied for growth of consumer installment debt that began such an account but had not yet received apin late 1986 and carried through the first half of proval. The American Bankers Association esti- 1987. Also, a number of consumer interest orga- mates that creditors approve roughly 75 to 85 nizations and some members of the Congress percent of applications for home equity achave expressed concern about the suitability of counts; thus, most of these pending applications home equity loans for consumers. They have probably were approved by the end of 1987. If warned borrowers to exercise caution in using so, approximately 2.5 million to 3 million homehome equity accounts and have criticized certain owners had home equity accounts at that time. lender practices in connection with them. On a Moreover, prospects for continued growth broader scale, some observers have questioned seemed good, since an additional 4 percent of the economic effects of home equity accounts, homeowners interviewed said they were considviewing them as an encouragement to increase ering applying for such an account in the next current spending at the expense of saving and as few months. an inducement for consumers to deplete their housing equity instead of preserving that asset to Characteristics of Account Holders help finance longer-term needs such as retirement. As a group, families with home equity accounts To obtain information about the prevalence of have economic and demographic characteristics home equity accounts and the ways that home- that set them apart from the average family. By owners have been using them, the Federal Re- definition, home equity accounts are available serve Board sponsored consumer surveys in the only to homeowners—about 65 percent of all spring and fall of 1987. Consumers were asked families. Furthermore, home equity account whether they were aware of home equity ac- holders typically have considerably higher incounts and whether they had one or had applied comes and have built up substantially more home for one. Families with a home equity account equity than homeowners without such accounts were questioned about the amount of such credit (table 5). Families with home equity accounts available to them, how much of it they had used, had median 1986 family incomes of $42,000, how frequently they had made draws, and the compared with $27,000 for homeowners without purposes of the draws. This section discusses the such accounts. For homeowners with home eqresults of these surveys. uity accounts, the median amount of home equity was $64,000; for homeowners without such ac- Prevalence of Home Equity Accounts counts, it was $46,000. Holders of home equity accounts typically are Although home equity accounts were still rela- younger and have had more years of education tively new in 1987, 80 percent of the homeowners than other homeowners. According to informainterviewed were aware of such accounts (table tion from the consumer surveys, the median age 4). Only a small proportion of homeowners— of the family head was 43 years for families that about 4 percent—had a home equity account; had home equity accounts, compared with 50 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Equity Lines of Credit 365 5. Selected characteristics of homeowners, by holding of home equity lines of credit, 1987 1986 family income Homeowner equity1 (dollars) (dollars) MMeeddiiaann aaggee EEdduuccaattiioonn HHoommeeoowwnneerr ((mmeeddiiaann ggrraaddee ((yyeeaarrss)) ccoommpplleetteedd)) Mean Median Mean Median Holds home equity account 49,611 42,000 83,549 64,000 43 14 Does not hold home equity account .. 34,027 27,000 61,907 46,000 50 12 All homeowners 34,711 28,000 62,761 47,000 50 12 1. Homeowner equity consists of the market value of the home less all debts secured by the home, including balances outstanding on equity lines of credit. years for other homeowners. Heads of families upper limit of 70 to 80 percent that lenders that had home equity accounts typically had ordinarily allow. completed 14 years of education, compared with 12 years for other homeowners. In view of these Use of Home Equity Accounts financial and personal characteristics, home equity account holders seem to be better prepared The surveys suggest that, so far, consumers have than the average consumer to cope with the used their home equity accounts in a fairly concomplexity and risks of using a home equity servative manner. A substantial proportion of account. account holders—18 percent—had never borrowed against their credit lines (table 7, memo). Size of Credit Lines Few of the unused accounts were opened only recently; almost all of them were at least three One attraction of home equity accounts is the months old, and almost half were at least six relatively large credit line for which many home- months old. These account holders evidently had owners can qualify. Except for the wealthy, most established their accounts either in anticipation homeowners can finance major expenditures of some specific use or as a standby source of only by borrowing against their major asset—the liquidity. accumulated equity in their homes. More than 70 Account holders who had used their credit line percent of the accounts sampled in 1987 had a reported a large variety of first uses. Many of credit line of $20,000 or more (table 6). them reported more than one use for their first Home equity credit lines are large relative to drawdown. the lines ordinarily available with other types of 7. Uses of home equity lines of credit, loans, but on the whole, consumers and creditors by order of use, 1987 have held credit lines to a rather moderate level. Percent of account users The typical home equity line averaged about half of the homeowner's equity, compared with an Use First use1 Al u l se la s t 2 e r Memo 6. Distribution of home equity lines of credit, Pay off other debt 5533 77 by size of line, 1987 Home improvement 2255 1199 Automobile purchase 1122 1166 Amount (dollars) Percent O Ed th u e c r a 3 t ion and medical care 4488 88 22 11 11 33 Less than 10,000 8 MEMO 10,000-19,999 20 Never used account 1188 20,000-49,999 39 Used account only once 5555 50,000 or more 33 1. Percentages add to more than 100 because some account holders Total 100 reported more than one type of first use. 2. Percentages do not add to 100 because some account users MEMO (dollars) Mean amount 45,000 reported only a first use. Median amount 30,000 3. Includes real estate purchases, vacations, business investments, and financial investments such as individual retirement accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin • June 1988 The most prevalent first use—reported by over 8. Distribution of home equity lines of credit, half of all account users—was to pay off other by proportion of credit line in use, 1987 indebtedness (table 7), about two-thirds of which Proportion of line in use (percent) Percent was credit card debt and auto loans. The substitution of home equity account balances for other 0 22228888'''' types of consumer debt generally improves a 1-24 22223333 25-49 22222222 consumer's current financial position because, at 50-100 22228888 the prevailing interest rates for home equity Total 100 accounts and most types of consumer installment MEMO2 loans, it reduces borrowing costs. Use of a home Mean proportion 42 Median proportion 36 equity account also typically produces greater tax savings and, with the exception of credit 1. Differs from corresponding value in table 7 because it includes those who have used their line but have paid off their balance. cards and overdraft features of checking ac- 2. For accounts with an outstanding balance. counts, permits more flexibility in adjusting payments to match variations in income. Of course, standing balance on their accounts. Overall, the it is difficult to evaluate the longer-run effects median proportion of the credit line in use for that could result if, for example, interest rates on those with such debt was 36 percent. home equity accounts should rise sharply. The next most frequent first use of home equity accounts was for home improvements, SUPPLIER PARTICIPATION suggesting that another large share of the initial IN THE MARKET debt substituted for unsecured home improvement loans and traditional second mortgages. According to the 1987 consumer surveys, depos- Other first uses included purchases of automoitory institutions have been the principal source biles, payment of educational and medical exof home equity accounts (table 9)—about 41 penses, business and financial investments, and percent of such accounts were issued by comexpenditures for various consumer durables. Fifmercial banks, 38 percent by thrift institutions ty-five percent of account users drew against (savings and loan associations and savings their accounts only once (table 7, memo). These banks), and 12 percent by credit unions. Less borrowers established their accounts for particthan 10 percent of the accounts were issued by ular purposes and have not drawn on them for nondepository financial institutions, such as fiany additional borrowing. nance companies or brokerage firms. Table 7 also shows the percent of account users that employed home equity accounts for Home Equity Account Debt Outstanding specified purposes after the first time the account had been tapped. Borrowings after the first Until recently, no comprehensive data have been tended to be for purposes different from those of available about suppliers of home equity account the initial borrowing. For example, the proporcredit. The collection of information about baltion of users who paid off other debts in later uses was much smaller than the proportion who paid off debts for their first use. The most prevalent 9. Distribution of home equity lines of credit, type of later use was for home improvement, by source of credit, 1987 followed closely by automobile purchases. Source Percent Information on outstanding balances also supports the view that consumers, on the whole, Commercial banks 41 have been cautious in their use of home equity Thrift institutions' 38 Credit unions 12 accounts. According to the 1987 consumer sur- Other creditors2 8 veys, 28 percent of home equity account holders Total 100 had at least half of their lines of credit in use 1. Savings and loan associations and savings banks. (table 8), but an equal proportion had no out- 2. Includes finance and loan companies and brokerage firms. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Equity Lines of Credit 367 10. Proportion of all commercial banks that offer home equity lines of credit, and home equity balances as a proportion of selected loan balances, by asset size of bank, December 31, 1987 Percent of total balance represented by PPeerrcceenntt ooffffeerriinngg home equity account balances AAsssseettss ((mmiilllliioonnss ooff ddoollllaarrss)) hhoommee eeqquuiittyy aaccccoouunnttss Consumer loans Consumer loans plus home plus all loans equity accounts secured by homes Less than 100 222333 444 222 100-249 250-999 1,000 or more All banks SOURCE. Report of Condition for December 31, 1987. ances outstanding on such accounts at all com- varies substantially according to bank size (table mercial banks began with the Report of Condi- 10). For example, at the smallest institutions, tion of December 31, 1987; comprehensive home equity account debt typically amounted to information on the home equity debt outstanding only 4 percent of consumer debt plus home at other types of institutions is still not available. equity account debt. By contrast, the ratio was 9 The Report of Condition shows that home equity percent for banks in the largest size category, on account debt was outstanding at 32 percent of average, partly reflecting the greater proportion commercial banks (4,322 banks out of a total of of such banks that offer home equity accounts. 13,604) at the end of 1987, in the amount of $30.4 Similarly, when measured as a percentage of billion. consumer debt plus all loan balances secured by The consumer surveys showed that about two- residential property, home equity account balfifths of all home equity accounts had been ances were only 2 percent for the smallest banks obtained from banks. Assuming that nonbank but were 6 percent for the largest banks. home equity credit lines had been drawn down to A substantially different picture of small-bank the same extent as bank lines, two-fifths of all involvement in home equity accounts emerges home equity account debt equaled about $30 when banks that do not offer home equity acbillion in late 1987, and therefore such debt from counts are excluded (table 11). As a group, the all sources equaled about $75 billion ($30 billion smaller banks had ratios of home equity lending divided by 0.4)6 to consumer and real-estate-secured lending little Differences in Participation, 11. Home equity credit line balances as a proportion of selected loan balances at banks offering home by Size of Lender equity accounts, by asset size of bank, December 31, 1987 The data from the Report of Condition also indicate that participation by commercial banks Percent of total balance represented by home equity account balances in the home equity account market increases AAsssseettss with the size of the bank. Less than one-fourth of ((mmiilllliioonnss ooff ddoollllaarrss)) Consumer loans plus Consumer loans plus home equity all loans secured by the smallest commercial banks reported any reaccounts homes volving loans secured by residential properties (table 10). By contrast, more than four-fifths of Less than 100 100-249 the largest commercial banks offered open-end 250-999 1,000 or more uuu 777 home equity lines of credit. 111111 All banks The importance of home equity account loans relative to other types of consumer lending also SOURCE. Report of Condition for December 31, 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 Federal Reserve Bulletin • June 1988 different from the corresponding proportions for imposing appraisal fees, loan origination fees, the larger banks. This result suggests that, al- and the like also fosters a long-term link between though a lower proportion of smaller banks par- borrower and lender by making it costly for ticipate in the home equity account market, those consumers to shift home equity accounts from who do so are able to generate home equity one lender to another. In the early years of home account business in about the same proportion, equity accounts, virtually all lenders charged relative to other types of loans, as larger institu- initial fees. But in the heavily competitive market tions. of the past two years, many lenders have waived or substantially reduced these fees, thereby ADVANTAGES OF HOME EQUITY ACCOUNTS weakening the tie between an equity line user FOR LENDERS and the initial supplier of credit. Still, the complexity of the application process itself, and in Home equity accounts are attractive to lenders some cases the charging of close-out fees, serve because the accounts provide opportunities for as disincentives to switch lenders frequently or controlling or reducing costs and for increasing for slight cause. revenues. For instance, when compared with Home equity accounts are also desirable to other types of consumer loans, particularly other creditors because they provide opportunities to types of revolving credit, home equity accounts cross-sell other products and services, such as carry a relatively low risk of loss from default checking accounts, credit or debit cards, or because outstanding balances are secured by the credit insurance. For example, roughly 60 perborrower's home. cent of creditors offering home equity accounts Lenders might achieve additional savings if the also offer credit life insurance, and nearly 30 customer could be encouraged to make draws percent of their customers purchase such insurfrom a home equity line in place of a series of ance. To be sure, other loan products also afford closed-end junior mortgages or personal loans, opportunities for cross-selling, but the home eqthereby avoiding the recurrent fixed costs asso- uity account is particularly attractive because it ciated with establishing successive loans. Ex- delivers a higher-income, more-educated pool of penses of originating a home equity line are prospects. Moreover, homeowners with home relatively high, but the start-up costs are often at equity and family incomes typical of home equity least partially offset by initial fees. Moreover, as accounts holders are much more likely than other discussed below, the credit line customer tends homeowners to hold money market deposit acto be a customer of the same institution for future counts, certificates of deposit, individual retireborrowing needs. ment accounts, and trust accounts (table 12). The Variable-rate pricing for home equity accounts appeals to lenders because the automatic adjust- 12. Proportion of selected groups using selected ment of interest rates to changes in financial financial services, 1983 market conditions shifts at least some of the risk Percent of future rate movements to the borrower. Without such adjustments, lenders would bear the Homeowners entire risk of losses due to increases in their cost typical of All home- All home equity owners families of funds as well as the risk that returns on account holders' alternative investments might increase while the yields on home equity loans remained fixed. market deposit Some features of home equity accounts may count 29.6 12.0 9.4 Money market mutual help to establish a long-term relationship with the fund 31.8 9.2 7.5 Certificate of deposit 36.9 26.6 20.2 borrower. Because of the relatively high lending IRA or Keogh account... 60.0 23.1 17.4 limits on home equity accounts, and lender will- Trust account 13.6 4.4 4.0 ingness to raise limits over time, a borrower I. $75,000 or more in home equity and family incomes greater than would ordinarily want, or be able, to obtain only $40,000. SOURCE. Board of Governors of the Federal Reserve System, 1983 one such credit arrangement. The practice of Survey of Consumer Finances, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Equity Lines of Credit 369 long-term relationship with the borrower prom- ers have been criticized for using the less costly, ised by home equity accounts should provide but also less thorough, "drive-by" method of numerous opportunities for the creditor to pro- appraisal. Lenders who rely on less-rigorous mote these ancillary services—for example, evaluations of collateral value are exposed to through mailings of periodic statements. In 1987, greater risk of default, but the actual extent of the 9 percent of larger financial institutions reported problem is unknown. However, in addition to they offered reduced fees for deposit accounts or evaluating the collateral, almost all lenders aslower finance rates for other credit products to sess the borrower's ability to repay. We estimate customers that have home equity lines of credit.7 that 98 percent of creditors who use drive-by A final attraction of home equity accounts is appraisals also evaluate a loan applicant's debtthat the prospects for longer-term growth of such to-income ratio. Also, some of these lenders may accounts appear generally favorable. Substantial be extending home equity accounts to customers latitude exists for continued substitution of home who already have a first mortgage or other acequity accounts for consumer installment credit counts at the same institution. Such creditors and traditional second mortgages. As discussed, may be well-equipped to gauge creditworthiness only 4 or 5 percent of homeowners already have and collateral value for such applicants. Thus, in home equity accounts. In comparison, about 62 itself, the use of drive-by appraisals does not percent of homeowners have consumer install- indicate an absence of prudent credit standards. ment debt obligations.8 About two-thirds of this Credit problems with home equity accounts at group, or two-fifths of all homeowners, had at commercial banks have been fairly limited so far. least $25,000 in home equity, so there is consid- About 0.7 percent of the home equity credit lines erable room for the expansion of home equity in use were delinquent, on average, during the accounts merely as a substitute for other forms of last three quarters of 1987. By comparison, decredit. Second, the phaseout by 1991 of tax linquency rates during the same period averaged deductibility for interest on nonmortgage con- 2.33 percent for credit card plans and 1.72 persumer loans provides an increasing incentive for cent for new-auto loans.9 However, most home replacing other kinds of consumer loans with equity accounts have been opened relatively home equity credit. Third, a growing proportion recently, so the delinquency experience on them of the baby boom population has reached the may not remain as favorable once the accounts stage at which increasing homeownership, grow- have aged. ing home equity, rising needs for credit, and relatively high income levels seem likely to favor Pricing Problems the growth of home equity accounts. Aggressive competition among lenders for home equity accounts—such as low interest rates and POSSIBLE DISADVANTAGES OF HOME waived or discounted fees—has attracted cus- EQUITY ACCOUNTS FOR LENDERS tomers, but such competition also can impair the profitability of the accounts. Survey evidence From the lender's perspective, a number of ac- indicates that some consumers establish the actual or potential disadvantages are associated count but use it little or not at all. Other consumwith home equity accounts. These drawbacks ers, attracted mainly by the pricing concessions, mainly involve credit standards and product might close the account before interest earnings pricing. had offset the initial costs involved or might switch to a still more attractively priced account Credit Standards at another institution. To protect themselves against these risks, some The intensity of competition for home equity lenders charge a fee when an account is closed. accounts among lenders has caused some ob- Other institutions gradually rebate the initial fees servers to question the credit standards applied against interest payments instead of absorbing all in granting such loans. For example, some lend- of them when the account is established. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin • June 1988 Another problem with the low interest rates on Association (ABA) issued guidelines for lenders home equity accounts is that the home equity regarding proper advertising of home equity acaccount may be used to retire higher-priced counts. The ABA also has developed an educacredit, such as credit card debt, held by the same tional brochure about home equity loans for lender. However, the effect of such develop- distribution to consumers. Efforts to guide lendments on net earnings is not entirely clear, be- ers and educate consumers regarding home eqcause lower gross revenue on the home equity uity accounts have also been made by the Conaccount might be matched to some extent by sumer Bankers Association, the Credit Union reductions in costs such as bad-debt expenses. National Association, and the U.S. League of Savings Institutions." The Congress and the Federal Reserve Board POLICY ISSUES have responded to the concerns raised about home equity accounts. The Congress currently is The recent proliferation of home equity accounts considering several bills that would amend the has focused public attention on their risks and Truth-in-Lending Act to require creditors to probenefits to consumers and stimulated debate vide prospective loan applicants with specific about appropriate public policy. One area of disclosures about home equity accounts.12 These concern involves the appropriateness of current bills also would require creditors to provide disclosure rules for home equity accounts. Under consumers with a copy of an information brocurrent provisions of the Truth-in-Lending Act chure published by the Federal Reserve (or a and the Federal Reserve's Regulation Z, which suitable substitute) that describes how home implements that law, home equity accounts are equity accounts operate. treated in the same manner as other types of The Federal Reserve Board has issued proopen-end credit programs for purposes of disclo- posed revisions to Regulation Z that would resure and advertising. But home equity accounts quire home equity account creditors to provide are more complex than other types of open-end disclosures when they give an application form to credit plans and may pose a greater risk to the the consumer or before the consumer pays a financial well-being of consumers if they fail to nonrefundable fee, whichever is earlier. The understand the terms and conditions. Conse- Board also has proposed requiring that creditors quently, some have questioned whether existing distribute educational brochures explaining some disclosure rules ensure that consumers receive of the key characteristics and potential risks timely and adequate information about the key associated with home equity plans. The Board's characteristics of these accounts. action reflects a view that providing enhanced A second area of concern involves features in disclosures about home equity lines at an earlier many home equity accounts that, critics believe, point in the credit approval process than is now pose significant risks to borrowers or are inher- required will help consumers understand and ently unfair and therefore should be prohibited or shop for this type of credit. Although the proseverely restricted.10 One feature considered un- posed rules would impose some additional costs fair allows creditors to change the terms and on creditors, better-informed consumers are conditions of the plan unilaterally. Provisions more likely to be cautious in their use of home frequently criticized as too risky for borrowers equity accounts and therefore will be less likely include repayment schedules, such as interest- to overextend themselves. Minimizing such only payment options, that may result in balloon problems would benefit consumers and creditors payments and clauses allowing the creditor to alike. terminate the account and demand full payment The Congress has considered other provisions of the outstanding balance at any time. that would restrict or prohibit credit terms that Financial institutions and their trade associa- are commonly available under many home equity tions have responded to some of the concerns plans. For example, the Congress has enacted raised about home equity accounts. For exam- legislation potentially affecting the level of fiple, in December 1986 the American Bankers nance rates charged on home equity accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Equity Lines of Credit 371 As already mentioned, the Competitive Equality inconvenience and cost associated with making Banking Act of 1987 requires creditors to estab- another credit application. In the absence of lish an interest rate ceiling applicable to all evidence that such restrictions are necessary to adjustable-rate mortgages secured by a consum- prevent misleading or abusive practices, the Feder's dwelling, including home equity accounts. eral Reserve Board testified before the Congress The practical effects of this rule are unclear in opposition to regulations that would place because creditors are free to select whatever rate these restrictions on home equity accounts.13 ceiling they choose. That rate, of course, would be subject to competitive market forces and, in some instances, to state usury laws, but would AGGREGATE CONSUMPTION not be limited in any way by the Competitive AND BORROWING Equality Banking Act. Both S. 3456 and H.R. 3468 contain provisions Whether the availability of large equity-secured that would limit some of the credit terms cur- lines of credit affects the consumption or borrowrently available on home equity accounts. For ing behavior of individual households has been example, H.R. 3468 would require consumers to an element of the public discussion of home follow a fixed payment schedule that would fully equity accounts. This issue has implications for amortize the principal and interest in connection the pattern and aggregate level of economic with each separate credit extension under a home activity. The following discussion briefly adequity account over a specified period of time. dresses some theoretical and empirical aspects of This provision would eliminate options for nona- the interactions between home equity accounts mortizing payment schedules, which result in and aggregate consumption and borrowing beballoon payments. The bill also would limit the havior. size of increases in the interest rate to no more Perhaps the most widely used descriptive than 2 percentage points per year and would model of consumer behavior is the "life-cycle" require that introductory or promotional interest model, which asserts that consumers plan their rates remain in effect for at least one year. spending with a view toward the earnings they Another provision of the bill would prohibit expect to achieve over their lifetimes. During the creditors from offering credit lines in excess of 75 early years of family formation, when needs are percent of the equity in the home (its fair market substantial and future earnings are expected to value less all secured debts). rise appreciably with work experience, families Provisions such as those in H.R. 3468 that might spend beyond the limits of current income restrict the credit terms of home equity accounts by borrowing. Later, during years of greater would result in major changes in the structure of earning power, families build up assets by saving the home equity plans offered by most-financial part of their income, and these accumulated institutions. For example, restrictions on repay- assets then finance consumption during old age ment options, such as prohibiting interest-only when labor income falls. plans and requiring all advances to be repaid Under a life-cycle model, the willingness of a under fixed amortization schedules, would re- lender to provide someone credit under a home duce the flexibility now afforded borrowers. Con- equity account generally would not alter that sumers who prefer more flexible repayment op- person's pattern of consumption, because the tions and who could use them prudently would availability of credit would not affect a person's be inconvenienced by having to abide by more income prospects or asset values. Of course, if rigid terms. Similarly, the proposed limitation of households in the early stage of their life cycles credit lines on home equity accounts to 75 per- were unable to consume along a preferred path cent of equity might hamper consumers who because of impediments to borrowing, developwould like to obtain a larger credit line. Although ment of a new source of credit could' stimulate such consumers could seek additional credit increased consumption in the short run. By and from other sources, the loans might bear higher large, though, it would appear that home equity interest rates and in any case would involve the accounts do not greatly alter the liquidity con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin • June 1988 straints on consumption activity. Although home which may primarily entail substitution of openequity accounts clearly have advantages in con- end for closed-end second mortgage credit. venience and flexibility, equity-secured credit has long been available through traditional second mortgages, at interest rates not much higher than those on the newer, open-end instruments. APPENDIX A: In theory, the rapid growth of borrowing SURVEY OF CONSUMER ATTITUDES against home equity accounts could be adding to the total stock of household debt, or it could be To obtain information on the prevalence of home substituting for other types of credit with little equity accounts and their use by homeowners, effect on the aggregate borrowing by households. the Federal Reserve Board developed questions An indication that debt under home equity ac- that were included in the March, April, Septemcounts primarily has substituted for consumer ber, and October 1987 rounds of the Survey of debt is provided by statistical models designed to Consumer Attitudes, conducted by the Survey project the separate growth paths of consumer Research Center, University of Michigan. Interand home mortgage debt. We "explained" his- views were conducted by telephone, with teletorical patterns for each credit aggregate through phone numbers chosen from a cluster sample of 1984 (that is, before the period of rapid growth of residential numbers. The sample was chosen to home equity accounts) by their correlation with be broadly representative of the four major resuch economic variables as outlays for housing gions—Northeast, North Central, South, and construction, personal consumption expendi- West—in proportion to their populations (Alaska ture, the proportion of spending devoted to con- and Hawaii were not included). At each telesumer durables, mortgage interest rates, and the phone number drawn, an adult from the family like. was randomly selected as the respondent. We then projected the historical relationships The survey defines the family to be any group into 1985-87 to obtain rates of credit growth that of persons living together who are related by would have been expected to prevail in the marriage, blood, or adoption, and any individual absence of home equity accounts. The projected living alone or with persons to whom the individgrowth in consumer credit was stronger than ual is not related. The head of the family is actually occurred, and the projected growth in defined as the individual living alone, the male of mortgage debt (of which debt under home equity a married couple, or the adult in a family with accounts is a part) was weaker than actually took more than one person and only one adult. Genplace. Moreover, when the projected amounts erally, when there is no married couple and more for mortgage and consumer credit were added than one adult, the head is the economically together, the growth path of this series closely dominant person or the one closest to age 45. matched the path for the actual total of mortgage Adults are persons aged 18 years or more. and consumer debt. This result suggests that Together the surveys sampled 2,454 families, consumers shifted from using consumer debt to a 1,746 of whom were homeowners. Overall, 96 form of mortgage debt but that they did not much homeowners reported having home equity acincrease their total borrowing. counts. The survey data have been weighted to The purposes for which individuals say they be representative of the population, thereby corhave used home equity accounts also suggest recting for differences among families in the that this credit instrument has proved to be more probability of their being selected as survey of a substitute for traditional means of borrowing respondents. Estimates of population characterthan a supplement to them. As reported above, istics derived from samples are subject to errors the most prevalent initial use that survey respon- based on the degree to which the sample differs dents had'for their equity lines was to pay off from the general population. Table A.l indicates existing loans, which doesn't expand total in- the sampling errors for proportions derived from debtedness, and to finance home improvements, samples of different sizes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Equity Lines of Credit 373 A. 1 Approximate sampling errors of survey results, 3. Trans Data, Home Equity Lines of Credit, table 32, by size of sample p. 36. Also, see Lindgren and others, Home Equity Lending Survey, for a description of the proportion of creditors that Percentage points charge specific types of fees. 4. Trans Data, Home Equity Lines of Credit, table 24, SSuurrvveeyy rreessuulltt Size of sample p. 26. ((ppeerrcceenntt)) 5. Ibid., table 6, p. 9. 100 300 2,500 6. A more precise estimate of total home equity debt outstanding could be derived if consistent estimates of aver- 50 10.5 6.2 2.6 age balances at different types of institutions were available. 30 or 70 9.6 5.7 2.4 However, evidence about average account sizes is mixed. 20 or 80 8.4 4.9 2.1 10 or 90 6.3 3.7 1.6 7. Trans Data, Home Equity Lines of Credit, table 28, 5 or 95 4.6 2.7 1.1 p. 32. 8. Data as of 1986 for homeowners 25 or more years of age. 1. Ninety-five percent confidence level, 1.96 standard errors. Computed from data on interviews with 2,822 families (Board of Governors of the Federal Reserve System, 1986 Survey of APPENDIX B: Consumer Finances, Division of Research and Statistics.) HOME EQUITY LENDING SURVEY 9. Various issues of the "Consumer Credit Delinquency Bulletin," published by the American Bankers Association, Washington, D.C. For each credit type, the delinquency rate To obtain current information on developments is the number of loans delinquent 30 days or more as a in the market for home equity accounts, the percentage of the total number of loans outstanding. 10. The Consumer Federation of America and Consumers Center for Financial Services Studies of the t Union have argued for substantive regulation. See Stephen Mclntire School of Commerce, University of Brobeck and Tom Ciaglo, Home Equity Loan Survey (Wash- Virginia, surveyed 1,476 financial institutions in ington, D.C.: Consumer Federation of America, May 1987); 1987.14 The Consumer Bankers Association, and Consumers Union, The Inequities of Home Equity Lines of Credit: A Survey of Lenders in Three Major Metropolitan sponsor of the study, plans to repeat the survey. Areas (Washington, D.C.: Consumers Union, May 1987). See Conducted by mail in June 1987, the survey also Robert M. Garsson, "Home Equity Safeguards Sought," American Banker, May 18, 1987, pp. 15, 18; and covered a stratified systematic sample of finan- Thomas Durkin, "Home Equity Credit Lines in Perspeccial institutions in the United States that had tive," Finance Facts, June-July 1987. assets of at least $100 million. The groups receiv- 11. Another brochure about home equity accounts was recently issued for consumers by the American Institute of ing questionnaires were all commercial banks Certified Public Accountants in cooperation with the U.S. with assets of more than $250 million (954 Office of Consumer Affairs and the Council of Better Busibanks), a random sample of 411 commercial ness Bureaus' Foundation. 12. H.R. 3011, the Home Equity Loan Consumer Protecbanks drawn from the 1,645 banks in the $100 tion Act, originally introduced on July 23, 1987, was revised million to $250 million asset size category, and and reintroduced on December 26, 1987. H.R. 3468, the the 111 largest thrift institutions in the United Home Equity Loan Disclosure Act of 1987, was introduced States. From the total sample of 1,476 financial on October 9, 1987. S. 3456, the Home Equity Loan Consumer Protection Act of 1988, passed the Senate on March institutions, 302 responses were received. 30, 1988. 13. For testimony on H.R. 3011, see "Statement by Martha R. Seger, Member, Board of Governors of the Federal Reserve System, before the Subcommittee on Consumer Affairs and Coinage of the Committee on Banking, NOTES Finance and Urban Affairs, U.S. House of Representatives, October 6, 1987," FEDERAL RESERVE BULLETIN, vol. 73 1. Trans Data Corporation, Home Equity Lines of Credit: (December 1987), pp. 910-13; for testimony on H.R. 3011 and Structure, Marketing and Performance (Salisbury, Md.: on H.R. 3468, see "Statement by Martha R. Seger, Member, Trans Data, 1987), p. 17. Board of Governors of the Federal Reserve System, before 2. John H. Lindgren, Jr., Richard F. DeMong, and Sandra the Subcommittee on Consumer Affairs of the Committee on L. Schmidt, Consumer Bankers Association Home Equity Banking, Housing, and Urban Affairs, U.S. Senate, Novem- Lending Survey, Year-End 1986, conducted by the Center for ber 18, 1987," FEDERAL RESERVE BULLETIN, vol. 74 (Jan- Financial Services Studies, Mclntire School of Commerce, uary 1988), pp. 27-31. University of Virginia (Arlington, Va.: Consumer Bankers 14. Lindgren and others, Home Equity Lending Survey. Association, n.d.). Unless otherwise noted, the data we Copies of the executive summary are available from the report are from this survey; also, estimates we report as our Consumer Bankers Association, 1300 N. 17th St., Arlington, own are based on the data in this survey. VA 22209-3880. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 Industrial Production Released for publication April 15 two months of declines. At 134.6 percent of the 1977 average, the total index in March was 5.6 Industrial production edged up 0.1 percent in percent higher than it was a year earlier. March, after no change in the index in February. In market groups, production of consumer Gains in business equipment and a pickup in goods was unchanged in March. Automobile motor vehicle assemblies during March were assemblies rebounded to an annual rate of 6.6 about ofFset by weakness in construction sup- million units from February's rate of 6.1 million plies and nonauto consumer goods. Output of units. Truck production also increased. But promaterials edged up 0.2 percent in March, after duction of consumer home goods, which has Ratio scale, 1977 = 100 1982 1984 1986 198? 1982 1984 1986 1988 All series are seasonally adjusted. Latest figures: March. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

375 1977 = 100 Percentage change from preceding month Percentage cchhaannggee,, Group 1988 1987 1988 MMaarr.. 11998877 ttoo MMaarr.. 11998888 Feb. Mar. Nov. Dec. Jan. Feb. Mar. Major market groups Total industrial production 134.4 134.6 .5 .5 .4 .0 .1 5.6 Products, total 143.2 143.3 .1 .2 1.0 .3 .1 5.1 Final products 141.6 141.9 -.1 .4 .9 .3 .2 5.0 Consumer goods 131.9 131.9 .3 .3 1.2 .4 .0 4.0 Durable 121.2 122.0 -.4 -2.9 1.1 -.2 .6 1.9 Nondurable 135.8 135.5 .5 1.4 1.3 .6 -.2 4.8 Business equipment 151.4 152.4 -.2 1.0 .7 .3 .6 7.4 Defense and space 190.3 189.8 -.8 .1 .6 .1 -.3 .6 Intermediate products 148.8 148.3 .8 -.5 1.4 .2 -.3 5.2 Construction supplies 136.2 134.4 .7 -.3 2.3 -.5 -1.3 3.0 Materials 122.4 122.6 1.1 1.0 -.6 -.5 .2 6.4 Major industry groups Manufacturing 139.5 139.8 .4 .7 .4 .0 .2 5.6 Durable 137.9 138.3 -.1 .4 .3 .1 .3 5.2 Nondurable 141.8 141.9 1.1 1.2 .4 .0 .0 6.1 Mining 101.9 102.3 1.0 -.1 -1.6 -1.0 .4 4.1 Utilities 115.8 114.4 1.0 -1.3 3.1 .5 -1.2 6.1 NOTE. Indexes are seasonally adjusted. been weak since late last year, declined further, and space equipment remained sluggish. Output and output of consumer goods was cut back. of construction supplies fell for the second suc- Business equipment rose 0.6 percent; all major cessive month, retracing some of the large Janucategories advanced, with the most significant ary gain. After having surged in the second half gains in manufacturing equipment and motor of 1987, production of materials dropped back in vehicles for business use. Production of defense January and February but rose moderately last month. The March levels of output of chemical and textile materials and basic metals—particu- Total industrial production—Revisions larly steel—remained below levels for December Estimates as shown last month and current estimates 1987. Percentage change In industry groups, manufacturing output in- Index (1977=100) from previous MMoonntthh months creased 0.2 percent in March. Durable manufacturing increased 0.3 percent, while nondurable Previous Current Previous Current manufacturing was unchanged. Production at utilities was down 1.2 percent, and mining output December 133.8 133.9 .5 .5 January 134.2 134.4 .3 .4 increased 0.4 percent. February 134.4 134.4 .2 .0 March 134.6 .1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 Statement to Congress Statement by William Taylor, Staff Director, comment, in each of the G-10 countries. The Division of Banking Supervision and Regulation, international framework and the implementing Board of Governors of the Federal Reserve Sys- guidelines being proposed by the U.S. banking tem, before the Subcommittee on General Over- authorities incorporate many of the public comsight and Investigations of the Committee on ments received in response to prior risk-based Banking, Finance and Urban Affairs, House of capital proposals—although we recognize that Representatives, April 21, 1988. additional comments and important issues will have to be carefully considered and discussed internationally before a final standard is adopted. I appreciate the opportunity to appear before this It is our hope and expectation that the framecommittee on behalf of the Board of Governors work, with whatever modifications and refineto discuss ongoing supervisory efforts to develop ments are deemed necessary, will be put into a risk-based framework for assessing the capital place by most or all of the major industrial adequacy of commercial banking organizations. countries by the end of this year or early next As has been reported to this committee in the year. past, the Federal Reserve, together with the other federal banking agencies, has been working The Board has long believed that capital adefor some time on an approach for assessing quacy is a particularly important factor in procapital adequacy that takes into account differ- moting the soundness of individual banking orences in risk profiles among banking organiza- ganizations as well as the health and stability of tions. Early last year, U.S. supervisory authori- the banking and financial system. For this reason ties issued for comment, jointly with the Bank of we have implemented policies and procedures England, a risk-based capital proposal applicable over the years—both in connection with on-site to all U.S. and U.K. banking organizations. examinations and in the review of regulatory Action on this proposal was deferred in an effort applications—designed to encourage institutions, to enlist the participation of a larger number of when necessary, to strengthen their capital posicountries in the development of a more broadly tions. In this regard, the risk-based capital probased international framework. posal represents a continuation of our ongoing An important measure of progress toward this efforts to ensure that banks are adequately capigoal was achieved last December when the cen- talized and that our supervisory policies are tral bank governors from the Group of Ten responsive to changing practices and trends industrial countries endorsed a proposed frame- within the banking system. work developed jointly by the regulatory author- Equally important, however, is the element of ities represented on the Basle Supervisors' international cooperation that lies at the heart of Committee.1 This proposal, which supersedes this proposal. Indeed, development of the riskthe earlier U.S.-U.K. measure, is currently be- based framework in conjunction with central ing reviewed, or has been published for public bank and supervisory authorities from the major industrial countries represents a significant cooperative step at the international level toward greater harmonization of important supervisory 1. The Basle Supervisors' Committee consists of represenstandards among nations with major financial tatives of the central banks and supervisory authorities from the Group of Ten countries (Belgium, Canada, France, Ger- centers. This is particularly important in view of many, Italy, Japan, the Netherlands, Sweden, the United the growing internationalization of banking and Kingdom, and the United States), Switzerland, and Luxemfinancial markets around the world. The riskbourg. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 377 based capital proposal underscores the common important measure of success—since the end of interests that supervisors from the leading indus- 1981, the average ratio of primary capital (net trial countries share in fostering a stable and of intangible assets) to total assets for the 50 largresilient international banking system and in est U.S. banking organizations has risen from reducing sources of competitive inequality for well below 5 percent to more than 7 percent international banking organizations that stem today. from differences in national supervisory require- As we are all well aware, however, the diffiments. culties and challenges facing banking organiza- Before addressing the risk-based capital pro- tions also increased during this period. Since the posal and related issues in greater detail, I would beginning of this decade, our banking system has like to make some general observations about the been confronted with asset quality problems re- Federal Reserve's supervisory policies on capital lating to the energy, agriculture, real estate, and adequacy and why we believe movement to a export sectors of our economy and to a deteriorisk-based standard is particularly important and ration in the condition of some less developed timely. country (LDC) borrowers. These conditions have led to a significant increase in the number of problem institutions and record levels of bank failures. While all of this has been happening, the BACKGROUND environment in which banks operate has also As I have indicated, the Board has long viewed been undergoing rapid change. Banking organiadequate capital as a critical determinant of the zations today must cope with greater volatility in health of our nation's banking institutions—a financial markets; intensified competition from view that I know is shared by many members of both domestic and foreign banks, as well as the Congress. The capital ratios of some of our nonbank financial institutions; the increasing larger banking organizations declined throughout size, complexity, and speed of financial transacmost of the period from the early 1970s to the tions; accelerating financial and technological early 1980s. This was due, in part, to the rapid innovation; the rapid growth and widespread use growth in assets, including the overseas loans of of off-balance-sheet financing techniques; and an these institutions, the effect of intensified foreign existing legal framework that hampers the ability and domestic competition on profit margins, and of U.S. banking organizations to compete effecthe adverse impact of inflation on bank balance tively in the provision of important financial sheets. These developments, together with in- services. creasing concern about the level of bank risks The pressures facing many banking organizaboth domestically and internationally, led the tions and the conditions that I have just de- Federal Reserve, in conjunction with the other scribed underscore the importance of strengthenfederal banking agencies, to establish formal ing capital ratios and suggest that the increase in supervisory standards on minimum acceptable primary capital to which I have alluded does not, levels of capital. by itself, give a complete picture of the capital These standards, stated in terms of the ratio of adequacy of our nation's commercial banking primary capital (equity plus loan-loss reserves organizations. For example, our traditional ratios and mandatory convertible debt securities) to of primary capital to total assets do not take total assets, were designed to establish a floor explicit account of the growth of off-balancebelow which a banking organization's capital, sheet items; nor do they recognize differences in under normal circumstances, would not be al- the level of risk among broad categories of bank lowed to fall. In adopting these guidelines, the assets. Moreover, primary capital includes cer- Federal Reserve indicated that it would modify tain convertible debt instruments and loan-loss its examination and regulatory policies to en- reserves, whose relative roles in primary capital courage organizations that did not meet the min- have changed as a result of heavy loan-loss imums to strengthen their capital bases over provisions relating to LDC exposure and to other time. In our view, this program achieved an asset quality problems. At the same time, there Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 Federal Reserve Bulletin • June 1988 has been a decline in stockholders' equity in RISK-BASED CAPITAL FRAMEWORK many of our larger institutions; in some cases, ratios of common equity to total assets have I would now like to summarize the major elefallen below 4 percent—roughly the level at ments of the risk-based capital proposal and which they stood in the late 1970s and early some of the issues relating to its implementation 1980s. by the Federal Reserve. Taken together, these developments suggest Briefly stated, the risk-based capital framethe need for a measure of capital adequacy that is work comprises the following four elements: more sensitive to broad differences in the degree 1. A consistent international definition of core of risk associated with a bank's assets, including or common equity capital and a "menu" of the existence of off-balance-sheet exposures, and recognized noncommon equity components that, that addresses the changes that have been taking at the discretion of the national supervisor, can place in the composition and quality of bank supplement the equity capital base. capital. 2. A framework for relating capital require- Another major factor in the development of an ments in a more systematic fashion to broad risk international risk-based capital framework is the considerations, including risks associated with growing globalization of banking and financial off-balance-sheet activities. markets. Over the last decade or more, U.S. 3. A schedule for achieving a minimum ratio of banking organizations have increasingly found total capital to weighted risk assets of 7.25 perthemselves in direct competition—both in this cent by 1990—of which at least 3.25 percentage country and abroad—with major banking organi- points should be in the form of common stockzations from other countries. Moreover, techno- holders' equity; and 8.0 percent by 1992—of logical advances and deregulation have resulted which at least 4.0 percentage points should be in in increasingly complex financial linkages and the form of common stock. trading relationships among the world's major 4. Transitional arrangements designed to profinancial centers. Given these developments, we vide a reasonable amount of time for organizasimply cannot ignore the impact of differing tions to bring their capital positions into conforregulatory standards on U.S. banks' ability to mity with the risk-based framework. compete worldwide. More consistent supervi- Proposed guidelines for implementing this sory standards among countries can contribute to framework for U.S. banking organizations have greater competitive equality and, in the long run, been issued for public comment, and I can assure to a safer and more stable international banking you that the Federal Reserve will, as in the past, system. carefully consider these comments before con- The Congress, too, as you are well aware, tinuing our international discussions on the final recognized this situation in passing the Interna- shape of the risk-based capital framework. tional Lending Supervision Act of 1983. One of Time does not permit me to address the riskthe major goals of this legislation was to based capital proposal in detail; however, there strengthen the bank regulatory framework by are several important general observations that I encouraging greater coordination among regula- would like to make concerning the development tory authorities in different countries. In this and implementation of the standard. regard, the act instructed U.S. banking authori- Perhaps more significant than any specific proties to work with governments, central banks, vision or detail of the proposal is the recognition and regulatory authorities of other major coun- of the importance of international cooperation in tries in an effort to maintain and, when neces- achieving key supervisory goals. These goals are sary, strengthen the capital positions of banking to encourage banking organizations, in particular organizations involved in international lending. large international institutions, to strengthen The active role played by U.S. regulators in their capital positions when necessary, and to formulating the international proposal represents reduce sources of competitive inequality arising an important step in carrying out the congres- from significant differences in national supervisional mandate. sory requirements. We believe that the develop- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 379 ment of the risk-based capital framework has subject to certain limitations, for the strength contributed importantly not only to the realiza- provided by other (supplementary) elements of tion of these goals, but also to strengthening and bank capital, such as preferred stock, subordibroadening the process of international cooper- nated debt, and loan-loss reserves. The imporation itself—a point that is particularly important tant role played by common equity capital rein light of increasing financial volatility and the flects the fact that this component is both freely growing internationalization of banking and fi- available to absorb unanticipated losses and pronancial markets. vides maximum strength and flexibility to an The risk-based capital proposal is in some organization when it is experiencing losses or respects quite complex—indeed development of other financial pressures. the framework required judgments and compro- The determination of what constitutes an "admises on several complicated supervisory issues equate" level of capital for banking organizations and difficult decisions at the margin. Nonethe- is obviously a difficult judgment that requires less, we believe that implementation of the risk- consideration of several complex factors. The based capital framework will improve our exist- major function of capital, of course, is to absorb ing capital policies in two important respects: unanticipated losses, thereby lessening the prob- 1. The framework will require that any signif- ability of bank failures and minimizing the attenicant credit risks associated with off-balance- dant economic and social costs stemming from sheet items, including many of the more recent bank closings. In this regard, we believe that the and innovative financial instruments, as well as equity and total capital standards incorporated in more traditional contingencies and guarantees, the risk-based capital framework should be be subject to minimum capital requirements. viewed as minimums. Our experience suggests 2. The framework removes disincentives to that banking organizations should endeavor to holding liquid, low-risk assets by explicitly rec- operate above these minimum standards if they ognizing that assets such as cash, government are to maintain a critical buffer of safety during securities, and liquid interbank claims require periods of financial strain or prolonged adversity. less capital support than do standard commercial Indeed, banking organizations with strong capital loans. This is done by assigning assets and off- bases are better positioned to withstand financial balance-sheet exposures to one of five risk cate- shocks, including large losses, and, other things gories based upon broad distinctions in relative equal, have more time to resolve their asset or credit riskiness. Unlike our current ratios, which earnings problems than those organizations with treat all assets alike, the risk-based framework thin or marginal capital positions. will apply lower risk weights and, therefore, In general, the overwhelming majority of comestablish lower capital requirements for those munity and regional banking organizations will assets that involve credit risks that are less than have little difficulty meeting the standards incornormal. porated in the risk-based capital proposal. For While reasonable people may differ on certain those organizations that do have to raise addidetails of the proposal, we believe that explicit tional capital, including some large institutions, recognition of off-balance-sheet exposures and the transitional arrangements and phase-in pedifferences in credit risk among major categories riod should provide a reasonable amount of time of assets will give clearer and more rational to bring their capital bases into compliance with supervisory signals on the need to support risk- the minimum risk-based standards. taking with adequate capital. Another point that I would like to address The risk-based capital proposal also addresses relates to the manner in which the Federal Rethe composition of capital. In doing this, the serve is proposing to apply the risk-based capital proposal emphasizes the importance of a strong ratio. The international proposal was designed to base of common stockholders' equity—requiring address the activities of international banking that, after the transition period, at least one-half organizations and those institutions engaged in of a bank's total capital be made up of this off-balance-sheet activities, although national sucomponent—while giving appropriate credit, pervisory authorities have the latitude to apply Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 Federal Reserve Bulletin • June 1988 the framework more broadly to banks under their systematically sensitive to risk considerations, jurisdiction. Because the fundamental principle including the risks associated with off-balance of relating capital needs to risk considerations activities, the risk-based capital framework rephas wide applicability, we are proposing to em- resents a significant strengthening of our superploy the general framework in evaluating the visory policies for assessing capital adequacy. capital adequacy of all U.S. banking organiza- Certainly development of the framework undertions, regardless of size—although we intend to scores the critical role of capital in helping bankminimize any unnecessary burden or disruption ing organizations withstand financial stress and the framework could entail, particularly for small weather prolonged periods of economic adverinstitutions. sity—a point that is important for both small In accord with reasonable and prudent transi- community or regional banking institutions as tional arrangements, we also intend to apply the well as large international organizations. framework in analyzing the capital positions of In a very important sense, both bank regulaforeign banks seeking to make acquisitions in the tors and bankers themselves share a common United States. This application is consistent with interest in the level of bank capital. The mainteour nation's policy of national treatment in that it nance of strong capital positions need not be a requires foreign banks operating in this country burden or hamper a bank's ability to compete. to be held to essentially the same standards of Indeed banking organizations with strong core financial strength and soundness that apply to capital positions are often effective competitors domestic institutions. with good earnings and sound asset portfolios. While the risk-based capital proposal estab- This is not surprising since a significant commitlishes a broadly consistent framework for use in ment of resources by the shareholder-owners the leading industrial countries, it does not man- gives them a particularly strong incentive to date rigid uniformity among countries. Instead, oversee the affairs of their bank. To be sure, the proposal provides a degree of flexibility to strong capital positions may actually give instinational supervisory authorities to accommodate tutions a competitive advantage during periods in certain differences among countries in account- which customers, depositors, or investors seek ing conventions, the structure and evolution of stability and fundamental strength as well as banking and financial markets, and supervisory convenience and high returns. Moreover, strong techniques and methodologies. Moreover, the capital can serve not only as a critical cushion to proposal acknowledges that the evaluation of help banks weather the kinds of pressures expecapital ratios is but one step in the overall rienced in the 1980s, but it can also provide assessment of capital adequacy. Any final judg- banks with the financial strength to adapt sucment of an organization's capital position must cessfully to future changes—changes that we take account of many other important factors hope and expect will involve additional powers that are not included in the risk-based capital and new opportunities to compete more freely calculation. These factors include the level and in the provision of banking and financial severity of an organization's problem assets, services. liquidity, exposure to interest rate movements, In the end, our banking organizations will be the level and trend of earnings, and the quality of stronger and more competitive, and the internaan institution's internal systems and controls. tional banking system more resistant to financial Ultimately, of course, no single index or ratio strains, if bank supervisory authorities from the by itself can capture all of the critical factors that major countries cooperate in the establishment of go into the assessment of capital adequacy. We consistent and credible standards for the assessbelieve, however, that by emphasizing the im- ment of bank capital adequacy. I believe the portance of a minimum base of equity capital and risk-based capital proposal constitutes an imporby making the assessment of capital needs more tant and constructive step in this direction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

381 Announcements SUPERVISOR Y POLICY STATEMENT ISSUED Division of Banking Supervision and Regulation. The update, Supplement 1, includes supervisory The Federal Reserve Board issued on April 20, developments, regulatory requirements, policies, 1988, a supervisory policy statement regarding Board orders, and inspection procedures selection of securities dealers and unsuitable adopted through September 1987. The December investment practices. 1987 "Guidelines for Real Estate Appraisal Pol- The purpose of this supervisory policy is to icies and Review Procedures" are also included. provide state member banks with recommended The entire text was revised and published in procedures to be used in the selection of a December 1986 and was made available for pursecurities dealer and to advise them of certain chase by the public and all previous subscribers securities practices that are viewed by federal at a cost of $40.00 per copy. Supplement 1 will be banking regulators as unsuitable for an invest- mailed, free of charge, to all previous subscribers ment portfolio. who paid the $40.00 fee for the December 1986 In addition, the supervisory policy discusses publication. Copies may be ordered from Publiseveral types of securities with very volatile cations Services, Board of Governors of the prices and high risk characteristics that, there- Federal Reserve System, Washington, D.C. fore, may be unsuitable for an institution's in- 20551 (tel. 202-452-3245). vestment portfolio, particularly if held in signifi- When Supplement 1 is received, please refer to cant amounts. Sections 1040.0 and 1050.0 for the summary of changes and filing instructions. Comments and suggestions on the manual's contents should be ANNUAL REPORT ON PRICED SERVICE directed to the Staff Director, Division of Bank- OPERATIONS ISSUED ing Supervision and Regulation, Board of Governors of the Federal Reserve System, Washing- The Federal Reserve Board issued on April 12, ton, D.C. 20551. 1988, a report summarizing developments in the If Supplement 1 is not received and the $40.00 priced services areas for 1987, including detailed subscription fee has been paid, please contact financial results of providing those services. Publications Services. The Board issues a report on priced services annually and a priced service balance sheet and income statement quarterly in the FEDERAL RE- SERVE BULLETIN. The financial statements are APPENDIX APPROVED FOR PROPOSED designed to reflect standard accounting prac- REGULATION CC tices, taking into account the nature of the Federal Reserve's activities and its unique position The Federal Reserve Board has approved Apin this field. pendix D of proposed Regulation CC, which sets out endorsement standards to be used by banks—defined in the proposed regulation as all BANK HOLDING COMPANY SUPERVISION depository institutions—when processing checks MANUAL: SUPPLEMENT 1 NOW AVAILABLE for collection and return. These standards will become effective on Sep- The Bank Holding Company Supervision Man- tember 1, 1988, and are being made public before ual was recently revised and updated by the the adoption of the remainder of Regulation CC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 Federal Reserve Bulletin • June 1988 to allow banks the maximum amount of time that are subject to its margin regulations, effecpossible to comply. tive May 9, 1988. The List of Marginable OTC Stocks supersedes the revised List of Marginable OTC Stocks that was effective on February 8, 1988. Changes PROPOSED ACTIONS that have been made in the list, which now includes 3,215 OTC stocks, are as follows: 75 The Federal Reserve Board issued for public stocks have been included for the first time, 62 comment on April 5, 1988, a proposed concept of under National Market System (NMS) designasame-day payment for checks presented to paytion; 55 stocks previously on the list have been ing banks by private-sector collecting banks. removed for substantially failing to meet the Under the proposed concept, paying banks requirements for continued listing; 81 stocks would pay for checks presented by collecting have been removed for reasons such as listing on banks prior to 2:00 p.m. in same-day final funds, a national securities exchange or involvement in without the imposition of presentment fees. an acquisition. Based upon the comments received, a specific The list includes all over-the-counter securities proposal may be developed, which could be designated by the Board pursuant to its estabissued for public comment before establishment lished criteria as well as all stocks designated as of formal rules on this issue. Comments should NMS securities for which transaction reports are be submitted to the Board by August 3, 1988. required to be made pursuant to an effective Specific comment is requested on five aspects of transaction reporting plan. Additional OTC secusame-day payment: rities may be designated as NMS securities in the • What is the potential demand for same-day interim between the Board's quarterly publicapayment and the anticipated public benefits if it tions and will be immediately marginable. The were implemented? next publication of the Board's list is scheduled • What operational characteristics should a for August 1988. same-day payment arrangement assume? Besides NMS-designated securities, the Board • What impact would same-day payment have will continue to monitor the market activity of on various parties, and on the overall check other OTC stocks to determine which stocks collection system? meet the requirements for inclusion and contin- • What are the factors affecting risk arising ued inclusion on the list. from same-day payment? • Are there alternatives to the same-day payment arrangement? SYSTEM MEMBERSHIP.- The Federal Reserve Board also issued for ADMISSION OF STATE BANKS public comment on April 20, 1988, a proposed amendment to Regulation T (Credit by Brokers The following state banks were admitted to memand Dealers) to make certain foreign sovereign bership in the Federal Reserve System during the debt securities marginable. Comments were to be period April 1 through April 30, 1988: submitted to the Board by May 27, 1988. Florida Sarasota . . .. West Coast Bank of Sarasota REVISED LIST OF OTC STOCKS SUBJECT TO Ohio MARGIN REGULATIONS NOW AVAILABLE Chardon First County Bank Virginia The Federal Reserve published on April 22,1988, Leesburg Bank of Loudoun a revised list of over-the-counter (OTC) stocks Mechanicsville Hanover Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

383 Legal Developments FINAL RULE—REGULATION CC Appendix D The Board of Governors has adopted a standard form Indorsement Standards of indorsement for use by banks (defined in the proposed regulation to include all depository institutions 1. The depositary bank shall indorse a check according as well as branches of foreign banks in the United to the following specifications: States) when indorsing checks during the collection —The indorsement shall contain— and return process. The new standard is designed to —the bank's nine-digit routing number, set off by provide for clear and uniform indorsements for all arrows at each end of the number and pointing collecting and returning banks, plus a unique standard toward the number; for depositary bank indorsements. The standard will —the bank's name/location; facilitate the identification of the depositary bank and —the indorsement date. the prompt return of unpaid checks. This standard will —The indorsement may also contain— be part of Regulation CC—Availability of Funds and —an optional branch identification; Collection of Checks (12 C.F.R. Part 229) which the —an optional trace/sequence number; Board proposed for comment in December 1987. The —an optional telephone number for receipt of noti- Board expects to act on the remainder of Regulation fication of large-dollar returned checks; and CC in May 1988; it has adopted the indorsement —other optional information provided that the instandard now to give banks and equipment vendors clusion of such information does not interfere additional time to comply with the standard. with the readability of the indorsement. Effective September 1, 1988, the Board adopts a —The indorsement shall be written in dark purple or final rule to Regulation CC as follows: black ink. —The indorsement shall be placed on the back of the check in the following location: —The indorsement shall be placed so that the routing number is wholly contained in the area 3.0 Part 229—Availability of Funds and Collection inches from the leading edge of the check to 1.5 of Checks inches from the trailing edge of the check.1 —The indorsement shall not be placed in the MICR 1. The authority citation for 12 C.F.R. Part 229 conclear band, extending along the bottom edge of tinues to read as follows: the check to a height of 0.625 inches. Authority: Title VI of Pub. L. No. 100-86, 101 Stat. 2. Each subsequent collecting bank indorser shall 552, 635, 12 U.S.C. 4001 et seq. protect the identifiability and legibility of the depositary bank indorsement by: 2. Title 12, Chapter II of the Code of Federal Regula- —including only its nine-digit routing number tions is amended by adding Part 229 to read as follows: (without arrows), the indorsement date, and an optional trace/sequence number; —using an ink color other than purple; —indorsing in the area on the back of the check Part 229—Availability of Funds and Collection from 0.0 inches to 3.0 inches from the leading of Checks edge of the check. Subparts A-C— [Reserved] 1. The leading edge is defined as the right side of the check looking at it from the front. The trailing edge is defined as the left side of the check looking at it from the front. See American National Standards Committee on Financial Services Specification for the Placement and Appendixes A-C—[Reserved] Location of MICR Printing, X 9.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 Federal Reserve Bulletin • June 1988 3. Each returning bank indorser shall protect the 265, its Rules Regarding Delegation of Authority, to identifiability and legibility of the depositary bank delegate to the General Counsel, after consultation indorsement by: with supervisory staff, the authority to grant requests —using an ink color other than purple; for temporary director interlocks under the Board's —staying clear of the area on the back of the check Regulation L for newly chartered banking organizafrom 3.0 inches from the leading edge of the check tions, organizations in low-income areas or minority or to the trailing edge of the check. women's banks. It is expected that this delegation of authority will relieve the Board from having to act on matters that are more efficiently and effectively han- AMENDMENT TO RULES REGARDING dled by Board staff. DELEGATION OF AUTHORITY Effective May 4, 1988, the Board amends 12 C.F.R. Part 265 as follows: The Board of Governors is amending 12 C.F.R. Part 265, its Rules Regarding Delegation of Authority, to Part 265—Rules Regarding Delegation of extend the 30-day period for buy-ins of securities that Authority were not received. Effective April 11, 1988, the Board amends 12 C.F.R. Part 265 as follows: 1. The authority citation for 12 C.F.R. Part 265 continues to read as follows: Part 265—Rules Regarding Delegation of Authority Authority: Sec. 11(K), 38 Stat. 261 and 80 Stat. 1314 (12 U.S.C. 248(k)). 1. The authority citation for 12 C.F.R. Part 265 continues to read as follows: 2. Section 265.2 is amended by adding new paragraph (b)(13) as follows: Authority: Sec. 11(K), 38 Stat. 261 and 80 Stat. 1314 Section 265.2—Specific Functions Delegated to (12 U.S.C. 248(k)). Board Employees and to Federal Reserve Banks 2. Section 265.2 is amended by adding new paragraph (c)(36) as follows: Section 265.2—Specific Functions Delegated to (b)* * * Board Employees and to Federal Reserve (13) Under the provisions of section 212.4(b)(1) and Banks (2) of this chapter, after consultation with the Director of the Division of Banking Supervision and Regulation, to grant requests for temporary director interlocks under Regulation L for newly chartered (36) Under section 403.5(g) of the Treasury Depart- banking organizations, organizations in low-income ment regulations (17 C.F.R. 403.5(g)) implementing areas or minority or women's banks. the Government Securities Act of 1986 (Pub. L. 99- 571), to approve the application of a state member bank, a state branch or agency of a foreign bank, a ORDERS ISSUED UNDER BANK HOLDING foreign bank, or a commercial lending company COMPANY ACT owned or controlled by a foreign bank to extend for one or more limited periods commensurate with the Orders Issued Under Section 3 of the Bank circumstances the 30-day time period for obtaining Holding Company Act possession or control of securities specified in 17 C.F.R. 403.5(c)(l)(iii), provided the Staff Direc- City Financial Bancorp, Inc. tor is satisfied that the applicant is acting in good Chicago, Illinois faith and that exceptional circumstances warrant such action. Order Approving Acquisition of a Bank Holding Company AMENDMENT TO RULES REGARDING DELEGATION OF AUTHORITY City Financial Bancorp, Inc., Chicago, Illinois ("City Financial"), a bank holding company within the mean- The Board of Governors is amending 12 C.F.R. Part ing of the Bank Holding Company Act ("Act"), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 385 12 U.S.C. § 1841 et seq., has applied for the Board's City Financial competes with Rankin State Bank in approval, pursuant to section 3(a)(3) of the Act, to the Watseka banking market.5 City Financial is the acquire 100 percent of the voting shares of Potomac second largest of 14 commercial banking organiza- Bancorp, Inc., Potomac, Illinois, and thereby indi- tions, controlling deposits of $40.9 million, representrectly to acquire Goodwine State Bank, Potomac, ing 11.4 percent of the total deposits in the market. Illinois; and to acquire 80.2 percent of the voting Rankin State Bank is the 13th largest commercial shares of Rankin State Bank, Rankin, Illinois. banking organization in the market, controlling 1.6 Notice of the applications, affording interested per- percent of the total deposits in the market. Upon sons an opportunity to submit comments, has been consummation of this proposal, City Financial will duly published (52 Federal Register 2,288 and. 2,539 remain the second largest commercial banking organi- (1988)). The time for filing comments has expired, and zation in the market, controlling deposits of $45.7 the Board has considered the applications and all million, representing 13.0 percent of the total deposits comments received in light of the factors set forth in in the market. The four-firm concentration ratio would section 3(c) of the Act. increase from 48.1 percent to 49.7 percent and the City Financial, with deposits of $58.0 million,1 is HHI would increase by 34 points to 995. one of the smaller commercial banking organizations In view of the market shares of the resulting orgain Illinois, controlling less than 1.0 percent of the total nization and the small increase in concentration, the deposits in commercial banking organizations ("total Board concludes that consummation of the proposal deposits") in the state. Goodwine State Bank and would not have a substantial adverse effect on existing Rankin State Bank are two of the smaller commercial competition in the Danville and Watseka banking banking organizations in Illinois, with deposits of markets. $19.0 million and $4.8 million respectively, represent- In evaluating the applications, the Board has coning less than 1.0 percent of the total deposits in the sidered the financial resources of City Financial and state. Upon consummation of this proposal, City Fi- the effect on these resources of the proposed acquisinancial will control deposits of $81.8 million, repre- tion. The Board has stated and continues to believe senting less than 1.0 percent of the total deposits in the that capital adequacy is an important factor in the state. Consummation of this proposal would not have analysis of bank holding company proposals. In this any significant adverse effect upon the concentration regard, the Board notes that it appears that City of banking resources in Illinois. Financial will be able to service its debt while main- City Financial competes directly with Goodwine taining capital above the minimum levels in the State Bank in the Danville banking market,2 where Board's Capital Adequacy Guidelines. Accordingly, City Financial is the eighth largest of 12 commercial the Board concludes that financial and managerial banking organizations, controlling deposits of $17.0 resources of City Financial, Potomac Bancorp, Inc., million, representing 3.0 percent of the total deposits Goodwine State Bank and Rankin State Bank are in the market.3 Goodwine State Bank is the fifth consistent with approval. Considerations relating to largest commercial banking organization in the mar- the convenience and needs of the communities to be ket, controlling 3.4 percent of the total deposits in the served also are consistent with approval. market. Upon consummation of this proposal, City Based on the foregoing and other facts of record, the Financial would become the fourth largest commercial Board has determined that the applications should be, banking organization in the market, controlling depos- and hereby are, approved. The transactions shall not its of $36.0 million, representing 6.4 percent of the be consummated before the thirtieth calendar day total deposits in the market. The four-firm concentra- following the effective date of this Order, or later than tion ratio would increase from 78.7 percent to 81.2 three months after the effective date of this Order, percent, and the Herfindahl-Hirschman Index unless such periods are extended for good cause by the ("HHI") would increase by 20 points to 1981.4 Board or by the Federal Reserve Bank of Chicago, pursuant to delegated authority. 1. State banking data are as of June 30, 1987. 2. The Danville banking market is approximated by Vermillion generally will not be challenged (in the absence of other factors County, Illinois, except Butler, Grant and Sidell Townships. indicating anticompetitive effects) unless the post-merger HHI is at 3. Market data are as of June 30, 1986. least 1800 and the merger increases the HHI by at least 200 points. The 4. Under the revised Department of Justice Merger Guidelines, 49 Justice Department has stated that the higher than normal HHI Federal Register 26,823 (June 29, 1984), a market in which the thresholds for screening bank mergers for anticompetitive effects post-merger HHI is above 1800 is considered highly concentrated. In implicitly recognizes the competitive effect of limited-purpose lenders such markets, the Department is likely to challenge a merger that and other non-depository financial entities. increases the HHI by more than 50 points unless other factors indicate 5. The Watseka banking market is approximated by Iroquois that the merger will not substantially lessen competition. The Depart County, plus Butler and Grant Townships in Vermillion County, ment has informed the Board that a bank merger or acquisition Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 Federal Reserve Bulletin • June 1988 By order of the Board of Governors, effective Hampshire bank or bank holding company under April 25, 1988. conditions no more restrictive than those imposed by New Hampshire law.4 The New Hampshire Bank Commissioner has found Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, and Heller. Absent and not voting: that Massachusetts would allow the acquisition of a Governor Kelley. Massachusetts banking organization by a New Hampshire banking organization under conditions no more JAMES MCAFEE restrictive than those imposed by New Hampshire Associate Secretary of the Board law.5 Accordingly, the New Hampshire Board of Trust Company Incorporation approved Merrimack's appli- Merrimack Bancorp, Inc. cation on February 29, 1988. In light of the foregoing, Lowell, Massachusetts the Board has determined that the proposed acquisition is specifically authorized by the statute laws of Order Approving the Acquisition of a Bank New Hampshire, and is thus not prohibited by the Douglas Amendment. Merrimack Bancorp, Inc., Lowell, Massachusetts Merrimack is the seventy-ninth largest banking or- ("Merrimack"), a bank holding company within the ganization in Massachusetts, operating one subsidiary meaning of the Bank Holding Company Act ("BHC bank with total deposits of $219.3 million, representing Act") (12 U.S.C. § 1841 et seq.), has applied for the less than one percent of the total deposits in commer- Board's approval under section 3 of the BHC Act cial banks in Massachusetts.6 Hillsborough is the (12 U.S.C. § 1842) to acquire the successor by merger sixty-first largest commercial banking organization in to Hillsborough Bank & Trust Company, Milford, New Hampshire, controlling deposits of $20.9 million, New Hampshire ("Hillsborough").1 representing less than one percent of total deposits in Notice of the applications, affording an opportunity commercial banks in New Hampshire. Consummation for interested persons to submit comments, has been of the proposal would not have any significant adverse published (53 Federal Register 2,783 (1988)). The time effect upon the concentration of banking resources in for filing comments has expired, and the Board has Massachusetts or New Hampshire. considered the applications and all comments received Merrimack and Hillsborough do not compete diin light of the factors set forth in section 3(c) of the rectly in any banking market. Accordingly, consum- BHC Act (12 U.S.C. § 1842(c)). mation of the proposal would not eliminate any signif- Section 3(d) of the BHC Act, 12 U.S.C. § 1842(d), icant existing competition in any relevant banking the Douglas Amendment, prohibits the Board from market. The Board has also considered the effects of approving an application by a bank holding company the proposed acquisition on probable future competito acquire a bank located outside of the holding tion in the markets in which Merrimack or Hillsbocompany's home state unless the law of the state in rough, but not both, compete. In light of the existence which the target bank is located specifically authorizes of numerous potential entrants into the relevant marsuch an acquisition.2 The statute laws of New Hamp- kets, the Board concludes that consummation of the shire authorize an out-of-state New England bank proposed transaction would not have any significant holding company to acquire a New Hampshire bank or adverse effect on probable future competition in any bank holding company with the approval of the New relevant banking market. Hampshire Bank Commissioner.3 The commissioner The financial and managerial resources of Merrimust find that the principal banking business of the mack, its subsidiary, and Hillsborough are consistent acquiring institution is conducted in a New England with approval.7 Considerations relating to the convestate which would allow a similar acquisition by a New 4. N.H. Rev. Stat. Ann. § 384:47(11) (1987). 1. As required by New Hampshire law, Merrimack is forming 5. See January 18, 1988 letter to the New Hampshire Attorney Merrimack Bancorp of New Hampshire, Inc., Milford, New Hamp- General from the New Hampshire Bank Commissioner. shire, which has applied to become a bank holding company. Merri- 6. All banking data are as of September 30, 1987. mack Bancorp of New Hampshire will be a second-tier bank holding 7. Merrimack has also requested relief from certain commitments company wholly-owned by Merrimack with direct control of Hillsbo- relating to savings bank life insurance ("SBLI") activities that it made rough. in connection with its acquisition of Lowell Institution for Savings, 2. A bank holding company's home state is the state in which the Lowell, Massachusetts. Merrimack meets and will continue to meet operations of the bank holding company's subsidiary banks were all of the requirements set out by the BHC Act as amended by the principally conducted on July 1, 1966, or on the date on which the Competitive Equality Banking Act of 1987 for bank holding companies company became a bank holding company, whichever is later. that desire to engage in SBLI activities through qualified savings bank 12 U.S.C. § 1842(d). Merrimack's home state is Massachusetts. subsidiaries. Thus, the Board has determined that Merrimack should 3. N.H. Rev. Stat. Ann. § 384:45 (1987). be, and hereby is, granted relief from its previous commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 387 nience and needs of the communities to be served also be insured by the Federal Deposit Insurance Corporaare consistent with approval of this application. tion ("FDIC"). NHSB Corp. proposes to establish Based on the foregoing and other facts of record, the NHSB Bank as a state-chartered guaranty savings Board has determined that the applications should be, bank, the accounts of which will be insured by the and hereby are, approved, subject to the express FDIC. After the conversion, NHSB Corp. will acquire condition that Merrimack obtain the approval of the by merger FFB.1 Massachusetts Commissioner of Banks.8 This transac- Because FFB, at the time of its acquisition by tion shall not be consummated before the thirtieth NHSB Corp., will be an FDIC-insured bank, FFB calendar day following the effective date of this Order, would be a "bank" for purposes of the Act,2 and or later than three months after the effective date of NHSB Corp. properly has applied to acquire FFB this Order, unless such period is extended for good under section 3 of the Act, which governs the acquicause by the Board or by the Federal Reserve Bank of sition of banks by bank holding companies. Boston, acting pursuant to delegated authority. NHSB Corp., with deposits of $790.0 million,3 is the By order of the Board of Governors, effective sixth largest depository institution among commercial April 5, 1988. banks and thrift organizations in New Hampshire, controlling 5.7 percent of the total deposits of commercial banks and thrift organizations in the state.4 Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Heller, and Kelley. FFB is the twelfth largest depository institution among commercial banks and thrift organizations in New JAMES MCAFEE Hampshire, controlling deposits of $234.0 million, Associate Secretary of the Board representing 1.7 percent of the total deposits in commercial banks and thrift organizations in the state. Upon consummation of this proposal, NHSB Corp. New Hampshire Savings Bank Corp. will become the fourth largest depository institution in Nashua, New Hampshire New Hampshire and control deposits of approximately $1.1 billion, representing 7.4 percent of the Order Approving Acquisition of a Bank total deposits in commercial banks and thrift organizations in the state. Consummation of this proposal New Hampshire Savings Bank Corp., Nashua, New would not have any significant adverse effect upon the Hampshire ("NHSB Corp."), a bank holding com- concentration of banking resources in New Hamppany within the meaning of the Bank Holding Com- shire. pany Act ("Act"), (12 U.S.C. § 1841 et seq.), has NHSB Corp. competes directly with FFB in the applied for the Board's approval pursuant to section Nashua and Portsmouth-Dover-Rochester banking 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire markets. In the Nashua banking market,5 NHSB 100 percent of the voting shares of the successor by Corp. is the eleventh largest depository institution merger to New Hampshire Savings Bank of Nashua, among commercial banks and thrift organizations, Nashua, New Hampshire ("NHSB Bank"), and First controlling deposits of $18.9 million, representing 1.1 Federal Bank, FSB, Nashua, New Hampshire percent of the total deposits in commercial banks and ("FFB"). thrift organizations in the market. FFB is the fourth Notice of the application, affording interested per- largest depository institution among commercial banks sons an opportunity to submit comments, has been and thrift organizations in the market, controlling duly published (52 Federal Register 45,693 (1987)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the factors set forth in 1. NHSB Corp. has also applied to acquire warrants representing section 3(c) of the Act. up to 24.9 percent of the common stock of FFB. Because FFB FFB is a federal stock savings bank, the accounts of currently operates as an FSLIC-insured thrift institution, NHSB which are insured by the Federal Savings and Loan Corp. will not acquire warrants representing more than 4.9 percent of the voting shares without Board approval. Insurance Corporation ("FSLIC"). FFB has adopted 2. As an FDIC-insured bank, FFB would qualify as a "bank" under a conversion plan by which it will convert to a state- section 2(c) of the Act, as amended by section 101(a) of the Competchartered cooperative bank, the accounts of which will itive Equality Banking Act of 1987 ("CEBA"), Pub. L. No. 100-86, 101 Stat. 552, 554 (1987) (to be codified at 12 U.S.C. § 1841(c)). 3. Deposit data are as of September 30, 1987. 4. State data are as of June 30, 1987. 8. The Massachusetts Board of Bank Incorporation must approve 5. The Nashua banking market is approximated by the Nashua all acquisitions of banks by Massachusetts bank holding companies. RMA plus the New Hampshire towns of Greenville, Lyndeboro and Mass. Gen. Laws Ann. ch. 167A § 2 (West 1987). Mason. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 Federal Reserve Bulletin • June 1988 deposits of $199.2 million, representing 11.9 percent of communities to be served are also consistent with the total deposits in commercial banks and thrift approval. organizations in the market. Upon consummation of The Board notes that this application involves the this proposal, NHSB Corp. would become the fourth acquisition of a bank that results from a conversion of largest depository institution in the market, controlling a non-failing FSLIC-insured federal savings bank. The deposits of $218.1 million, representing 13.0 percent of acquisition proposed here, however, does not fall the total deposits in the market. The four-firm concen- within the scope of the Board's policy and rulings tration ratio would increase from 72.1 to 73.3 percent, regarding acquisitions of thrift institutions under secand the Herfindahl-Hirschman Index ("HHI")6 would tion 4 of the Act8 or the provisions of the 1982 Garnincrease 27 points to 1542. In view of the small St Germain Depository Institutions Act regarding acincrease in concentration, the Board has concluded quisitions of thrift institutions. FFB, when acquired by that consummation of this proposal will not have a NHSB Corp., will be a state-chartered cooperative substantial adverse effect upon competition in the bank, the accounts of which are insured by the FDIC. Nashua banking market. As an FDIC-insured institution, FFB will qualify as a In the Portsmouth-Dover-Rochester banking "bank" under the Act. market,7 NHSB Corp. is the ninth largest depository In addition, the Board has considered the one year institution among commercial banks and thrift organi- moratorium on thrift conversions imposed by the zations, controlling deposits of $79.4 million, repre- Competitive Equality Banking Act of 1987 senting 3.3 percent of the total deposits in commercial ("CEBA").9 CEBA, however, provides an exemption banks and thrift organizations in the market. FFB is from the moratorium for institutions, like FFB, which the 23rd largest depository institution among commer- entered into a letter of intent to affiliate with an cial banks and thrift organizations in the market, FDIC-insured institution before March 31, 1987. FFB controlling deposits of $21.6 million, representing less entered into a letter of intent to affiliate with an than one percent of the total deposits in commercial FDIC-insured institution before March 31, 1987, and banks and thrift organizations in the market. Upon statements by certain members of the Senate during consummation of this proposal, NHSB Corp. would consideration of the conference report on CEBA supbecome the seventh largest depository institution in port a determination that FFB is not subject to the the market, controlling deposits of $101.0 million, CEBA moratorium on thrift conversions. representing 4.2 percent of the total deposits in the The Congressional debates on the moratorium promarket. The HHI would increase by 6 points to 669 visions of CEBA indicate that an institution that and the market would remain unconcentrated. In view entered into a letter of intent before March 31, 1987, of the unconcentrated nature of the market and the and as a part of the process initiated a change of its small increase in concentration, consummation of this insurance status, was exempt from the CEBA restricproposal would not have a substantial adverse effect tions, notwithstanding the fact that the institution upon concentration in the Portsmouth-Dover-Roch- modified its FDIC insurance application after the ester banking market. initial proposed merger fell through.10 The legislative The financial and managerial resources of NHSB history further states that the exempt status attaches Corp. and FFB are consistent with approval. Consid- even though the original merger transaction was not erations relating to the convenience and needs of the consummated, because the application to change insurance stems from the date of the letter of intent. Because FFB entered into an agreement to affiliate 6. Under the revised Department of Justice Merger Guidelines (49 with an FDIC-insured institution before March 31, Federal Register 26,823 (June 29, 1984)), any market in which the 1987, the moratorium does not apply to this post-merger HHI is between 1000 and 1800 is considered moderately transaction.11 concentrated, and the Department is unlikely to challenge a merger or acquisition resulting in an HHI between 1000 and 1800 if the increase The Board expects that NHSB Corp. will comply in the HHI is less than 100 points. The Department has informed the with all state and federal requirements necessary for Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects, unless the post-merger HHI is at least 1800 and the merger increases the HHI by at least 200 points. The Justice Department has 8. D.H. Baldwin Company, 63 FEDERAL RESERVE BULLETIN 280 stated that the higher than normal HHI thresholds for screening bank (1977). acquisitions for anti-competitive effects implicitly recognizes the 9. Competitive Equality Banking Act of 1987, Pub. L. No. 100-86, competitive effects of limited purpose lenders and other non-deposi- § 306(h), 101 Stat. 552, 602 (1987) (to be codified at 12 U.S.C § 1730 tory financial entities. note). 7. The Portsmouth-Dover-Rochester banking market is approxi- 10. 133 Cong. Rec. S 11213, 11214 (daily ed. August 4, 1987). mated by the Portsmouth-Dover-Rochester MSA plus the New Hamp- 11. The Federal Home Loan Bank Board determined that FFB is shire towns of Brentwood, Brookfield, Epping, Freemont, Hampton exempt from the CEBA moratorium on thrift conversions and ap- Falls, Kensington, Middleton, New Durham, Northwood, Notting- proved FFB's application to convert to an FDIC-insured stateham, Strafford, and Wakefield, plus Lebanon, Maine. chartered bank on March 16, 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 389 consummation of the acquisition, and the Board's PNC is the second largest banking organization in approval of this application under the Act is not Pennsylvania and operates 26 subsidiary banks in intended to preempt any such requirements.12 The Florida, Indiana, Kentucky, Ohio and Pennsylvania, Board has previously stated that its approval of trans- with total domestic deposits of $20.9 billion.1 Bank is actions under section 3 of the Act does not relieve an a newly chartered national bank that will be located in applicant or the bank involved of the responsibility to New Jersey. Because the bank to be acquired is a de obtain approval under other federal or state laws and novo bank, consummation of this proposal would not regulations and does not shield an applicant from the result in an increase in the concentration of banking consequences of violations of other laws.13 resources in New Jersey. Based on the foregoing and other facts of record, the Section 3(d) of the Act (12 U.S.C. § 1842(d)), the Board has determined that the application should be, Douglas Amendment, prohibits the Board from apand hereby is, approved. This transaction shall not be proving an application by a bank holding company to consummated before the thirtieth calendar day follow- acquire control of any bank located outside of the ing the effective date of this Order, or later than three holding company's home state, unless such acquisition months after the effective date of this Order, unless is "specifically authorized by the statute laws of the such period is extended for good cause by the Board or state in which [the] bank is located, by language to that by the Federal Reserve Bank of Boston, acting pursu- effect and not merely by implication."2 The Board has ant to delegated authority. previously determined that New Jersey has by statute By order of the Board of Governors, effective expressly authorized a Pennsylvania bank holding April 18, 1988. company to acquire a New Jersey bank or bank holding company.3 Accordingly, approval of PNC's proposal to acquire Bank is not barred by the Douglas Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, and Heller. Absent and not voting: Amendment. Governor Kelley. Bank is to be located in Cherry Hill, New Jersey, and will compete in the Philadelphia/Trenton banking JAMES MCAFEE market.4 Because Bank is a de novo institution, con- Associate Secretary of the Board summation of the proposal will not have any significant adverse effects on either existing or potential PNC Financial Corp competition in any relevant market. Pittsburgh, Pennsylvania The financial and managerial resources and future prospects of PNC, its subsidiaries and Bank are con- Order Approving the Acquisition of a Bank sistent with approval. Considerations relating to the convenience and needs of the communities to be PNC Financial Corp, Pittsburgh, Pennsylvania served are also consistent with approval of this appli- ("PNC"), a bank holding company within the meaning cation. of the Bank Holding Company Act of 1956, as Based on the foregoing and other facts of record, the amended (the "Act") (12 U.S.C. § 1841 et seq.), has Board has determined that the application should be, applied for the Board's approval under section 3(a)(3) and hereby is, approved. This transaction shall not be of the Act (12 U.S.C. § 1842(a)(3)) to acquire 100 consummated before the thirtieth calendar day followpercent of the voting shares of PNC National Bank of ing the effective date of this Order, or later than three New Jersey, Cherry Hill, New Jersey, a de novo bank months after the effective date of this Order, and Bank ("Bank"). shall be opened for business not later than six months Notice of the application, affording interested per- after the effective date of this Order. The latter two sons an opportunity to submit comments, has been published (53 Federal Register 2,783 (1988)). The time for filing comments has expired, and the Board has 1. Banking data are as of September 30, 1987. 2. A bank holding company's home state is that state in which the considered the application and all comments received operations of the bank holding company's bank subsidiaries were in light of the factors set forth in section 3(c) of the principally conducted on July 1, 1966, or the date on which the Act. company became a bank holding company, whichever is later. 3. CoreStates Financial Corporation, 72 FEDERAL RESERVE BUL- LETIN 796 (1986). On October 16, 1987, the New Jersey Commissioner of Banking issued a Determination of Eligibility finding that PNC was 12. The Board may not approve an application that would result in a bank holding company eligible to acquire Bank under New Jersey a violation of federal or state law. Whitney National Bank v. Bank of law. New Orleans, 379 U.S. 411 (1964). 4. The Philadelphia/Trenton banking market is approximated by 13. Crocker National Corporation, 66 FEDERAL RESERVE BULLE- Bucks, Chester, Delaware, Montgomery and Philadelphia Counties in TIN 66 (1979); Royal Trust Company, 37 Federal Register 18,414, Pennsylvania, and Burlington, Camden, Gloucester and Mercer Coun- 18,415 (1972). ties in New Jersey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 Federal Reserve Bulletin • June 1988 periods may be extended for good cause by the Board mercial Bank, Springfield, Florida ("Springfield or by the Federal Reserve Bank of Cleveland, acting Bank"), through bank-to-bank mergers with Commerpursuant to delegated authority. cial Bank. The Lynn Haven Bank, Springfield Bank By order of the Board of Governors, effective and Commercial Bank (together "Banks") are under April 19, 1988. common management and ownership. After the merger of Lynn Haven Bank and Springfield Bank into Commercial Bank, SunTrust will control deposits Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, and Heller. Absent and not voting: equalling $11.7 billion, representing 13.5 percent of Governor Kelley. commercial deposits in Florida. Consummation of this proposal will have no significant effect upon the con- JAMES MCAFEE centration of commercial banking resources in Flor- Associate Secretary of the Board ida. The Banks to be acquired operate in the Bay County SunTrust Banks, Inc. banking market.2 SunTrust does not operate in this Atlanta, Georgia market, and thus, consummation of the proposal would not eliminate any substantial existing competi- Sun Banks, Inc. tion between SunTrust and Banks in the Bay County Orlando, Florida market. In addition, consummation of the proposal would not substantially lessen probable future compe- Order Approving Acquisition of a Bank tition in any market. The Board considers the financial and managerial SunTrust Banks, Inc., Atlanta, Georgia, and Sun resources of SunTrust, its subsidiary banks and Com- Banks, Inc., Orlando, Florida (together, "SunTrust"), mercial Bank to be consistent with approval of the bank holding companies within the meaning of the application. Bank Holding Company Act of 1956, as amended In considering the convenience and needs of the (12 U.S.C. § 1841 et seq.) ("Act"), have applied communities to be served, the Board has also taken jointly for the Board's approval under section 3(a)(3) into account SunTrust's record under the Community of the Act (12 U.S.C. § 1842(a)(3)), to acquire all of Reinvestment Act (12 U.S.C. § 2901 et seq.) the voting shares of Commercial Bank In Panama ("CRA"). The CRA requires the Board, in its evalu- City, Panama City, Florida ("Commercial Bank"). ation of a bank holding company application, to assess Notice of the application, affording an opportunity the record of an applicant in meeting the credit needs for interested persons to submit comments, has been of the entire community, including low- and moderategiven in accordance with section 3 of the Act. (53 income neighborhoods, consistent with safe and sound Federal Register 179 (1988)). The time for filing com- operation. The Board has received comments from ments has expired, and the Board has considered the DISTURBS, which represents low-income groups and application and all comments received, including com- individuals in Savannah, Georgia. DISTURBS rements in opposition to the application from Direct quests that the Board not approve the application due Involvement Savannahians Together Urging Respon- to the failure of Trust Company Bank of Savannah, sive Banking Services ("DISTURBS"), in light of the Savannah, Georgia ("Savannah Bank"), a bank subfactors set forth in section 3(c) of the Act (12 U.S.C. sidiary of SunTrust, to meet the local credit needs of § 1842(c)). Savannah, Chatham County, Georgia.3 SunTrust has SunTrust controls fifty-two bank subsidiaries in met privately with DISTURBS on two occasions and Florida, Georgia and Tennessee. SunTrust is the sec- has requested further meetings with the latter to disond largest banking organization in Florida, control- cuss specific problems. ling deposits in that state of $11.5 billion, representing In accordance with the Board's practice and proce- 13.3 percent of the total deposits in commercial banks dure for handling protested applications,4 the Board ("total deposits") in Florida.1 Commercial Bank controls $166.9 million in total deposits in the state of Florida, representing 0.2 percent of total deposits in 2. The Bay County banking market is approximated by Bay County, Florida. the state. As part of this proposal, SunTrust intends to 3. DISTURBS asserts that in Savannah, Georgia, SunTrust has acquire Lynn Haven Commercial Bank, Lynn Haven, failed to ascertain and meet the credit needs of low- and moderate- Florida ("Lynn Haven Bank"), and Springfield Com- income neighborhoods and minority residents and has inadequately marketed credit services to same; has conducted inadequate small business lending efforts; has engaged in credit discrimination against women and minorities; and has inconvenient locations and hours of operation in low- and moderate-income neighborhoods. 1. Deposit data are as of September 30, 1987. 4. See 12 C.F.R. § 262.25(c) (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 391 reviewed the allegations made by DISTURBS and By order of the Board of Governors, effective SunTrust's response. The Board has also considered April 12, 1988. Savannah Bank's CRA record as detailed in its report of examination, as required by the CRA. In addition, Voting for this action: Chairman Greenspan and Governors SunTrust has indicated it will take a number of steps to Seger, Angell, Heller, and Kelley. Absent and not voting: enhance Savannah Bank's CRA performance. Savan- Governor Johnson. nah Bank will strengthen and expand consumer compliance by instituting more extensive training and JAMES MCAFEE review procedures for responsible personnel. The Associate Secretary of the Board Bank will also strengthen its program to market credit services to minorities and low- and moderate-income Orders Issued Under Section 4 of the Bank neighborhoods, and its efforts to ascertain the credit Holding Company Act needs of minorities and low- and moderate-income neighborhoods, through meetings with community The Chase Manhattan Corporation representatives. Savannah Bank will also enhance its New York, New York efforts to promote community development for minorities and low- and moderate-income neighborhoods Order Approving Application to Engage in Limited by, among other things, engaging in discussions with Underwriting and Dealing in Commercial Paper representatives from the City of Savannah. SunTrust will file quarterly reports with the Federal Reserve The Chase Manhattan Corporation ("Chase" or "Ap- Bank of Atlanta detailing SunTrust's progress in meet- plicant"), New York, New York, a bank holding ing its CRA objectives. Finally, SunTrust has also company within the meaning of the Bank Holding committed to strengthen consumer compliance in all of Company Act ("BHC Act"), has applied for the its banking subsidiaries. Board's approval under section 4(c)(8) of the BHC Act The Board has carefully reviewed the record of (12 U.S.C. § 1843(c)(8)) and section 225.23 of the SunTrust in meeting the convenience and needs of the Board's Regulation Y (12 C.F.R. § 225.23) to engage community of Savannah, Chatham County, Georgia. de novo through Chase Manhattan Treasury Corpora- Based on this review and after taking into account tion, New York, New York ("Company"), in under- SunTrust's commitments to enhance its service to writing and dealing in, on a limited basis, commercial meet the convenience and needs of all segments of the paper. community, the Board concludes that convenience Company currently underwrites and deals in secuand needs considerations are consistent with approval rities that state member banks are permitted to underof this application.5 write and deal in under the Glass-Steagall Act (here- Based on the foregoing and other facts of record, the inafter "bank-eligible securities"), as permitted by Board has determined that the application under sec- section 225.25(b)(16) of Regulation Y (12 C.F.R. tion 3 of the Act should be, and hereby is, approved. § 225.25(b)(16)). Company has also previously re- The acquisition of Commercial Bank shall not be ceived Board approval under section 4(c)(8) of the consummated before the thirtieth calendar day follow- BHC Act to underwrite and deal in 1-4 family morting the effective date of this Order or later than three gage-related securities, certain municipal revenue months after the effective date of the Order, unless bonds (including "public ownership" industrial develsuch period is extended for good cause by the Board or opment bonds) and consumer-receivable-related secuby the Federal Reserve Bank of Atlanta, pursuant to rities ("CRRs") (hereinafter "ineligible securities"). delegated authority. These activities must be limited so as not to exceed 5 percent of Company's gross revenues and 5 percent of the market share for each security. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust New 5. DISTURBS has also requested that the Board order a public York Corporation, 73 FEDERAL RESERVE BULLETIN meeting to receive public testimony on the issues presented by this 473 (1987) ("Citicorp/Morgan!Bankers Trust"); and application. Although section 3(b) of the Act does not require a formal Chemical New York Corporation, The Chase Manhathearing in this instance, the Board may order a formal or informal hearing. In the Board's view, the parties have had ample opportunity tan Corporation, Bankers Trust New York Corporato present their arguments in writing and to respond to one another's tion, Citicorp, Manufacturers Hanover Corporation submissions. Moreover, the Savannah Bank has requested additional and Security Pacific Corporation, 73 FEDERAL REmeetings with DISTURBS to discuss specific problems. In light of these facts, SunTrust's proposals to expand its services, and other SERVE BULLETIN 731 (1987) ("Chemical"). Applicant facts of record, the Board has determined that a hearing would serve has proposed to conduct Company's underwriting and no useful purpose. Accordingly, DISTURBS' request for a public dealing in commercial paper in the same manner and to hearing is hereby denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 Federal Reserve Bulletin • June 1988 the same extent as previously approved by the Board particular type of security involved.5 The Board furin the foregoing Orders.1 The proposed new under- ther found that, subject to the prudential framework of writing and dealing activities would be provided in limitations established in those cases to address the addition to the above activities. potential for conflicts of interest, unsound banking Chase, with consolidated assets of $99.1 billion, is practices or other adverse effects, the proposed underthe second largest banking organization in the nation. writing and dealing activities were so closely related to It operates seven subsidiary banks and engages di- banking as to be a proper incident thereto within the rectly and through subsidiaries in a broad range of meaning of section 4(c)(8) of the BHC Act.6 permissible nonbanking activities.2 For the reasons set forth in the Board's Citi- Notice of the application, affording interested per- corp/Morgan/Bankers Trust Order, the Board consons an opportunity to submit comments on the pro- cludes that Applicant's proposal to engage through posal, has been published (53 Federal Register 6,201 Company in underwriting and dealing in commercial (1988)). The Securities Industry Association ("SIA"), paper would not result in a violation of section 20 of a trade association of the investment banking industry, the Glass-Steagall Act and is closely related and a opposes the application for the reasons stated in its proper incident to banking within the meaning of earlier protests to similar applications by Citicorp, J.P. section 4(c)(8) of the BHC Act provided Applicant Morgan & Co. Incorporated and Bankers Trust New limit Company's activities as provided in that Order. York Corporation. Accordingly, the Board has determined to approve the On April 30, 1987, the Board approved applications underwriting application subject to all of the terms and by Citicorp, J.P. Morgan and Bankers Trust to under- conditions established in the Citicorp!Morgan!Bankers write and deal in, through their bank-eligible securities Trust Order. The Board hereby adopts and incorpounderwriting subsidiaries, 1-4 family mortgage- rates herein by reference the reasoning and analysis backed securities, municipal revenue bonds (and cer- contained in that Order. tain industrial development bonds) and (except for The Board's approval of this application extends Citicorp) commercial paper.3 The Board concluded only to activities conducted within the limitations of that the underwriting subsidiaries would not be "en- the Citicorp!Morgan!Bankers Trust Order, including gaged principally" in underwriting or dealing in secu- the Board's reservation of authority to establish addirities within the meaning of section 20 of the Glass- tional limitations to ensure that the subsidiary's activ- Steagall Act4 provided they derived no more than 5 ities are consistent with safety and soundness, conpercent of their total gross revenues from underwriting flicts of interest and other relevant considerations and dealing in the approved securities over any two- under the BHC Act. Underwriting or dealing in comyear period and their underwriting and dealing activi- mercial paper in any manner other than as approved in ties did not exceed 5 percent of the market for each that Order is not within the scope of the Board's approval and is not authorized for Company. The Board's determination is subject to all of the conditions set forth in the Board's Regulation Y, 1. In its CilicorplMorgan/Bankers Trust Order, the Board stated including those in sections 225.4(d) and 225.23(b), and that it "will not consider the underwriting subsidiaries to be engaged to the Board's authority to require modification or principally in ineligible underwriting and dealing activities under section 20 of the Glass-Steagall Act under the conditions established termination of the activities of a bank holding combelow for the conduct of the activity under the BHC Act, if (1) the pany or any of its subsidiaries as the Board finds underwriting subsidiaries derive no more than 5 percent of their total necessary to assure compliance with, and to prevent gross revenues from ineligible underwriting and dealing activity on average over any two year period, (2) their underwriting activities in connection with each particular type of ineligible security do not account for more than 5 percent of the total amount of that type of 5. In this regard, the Board notes that the U.S. Court of Appeals for security underwritten domestically by all firms (or, in the case of the Second Circuit has upheld the Board's determination that the commercial paper, the average amount of dealer-placed commercial underwriting subsidiaries would not be engaged principally in ineligipaper outstanding) during the previous calendar year, and (3) they ble securities underwriting and dealing under the above revenue limit the amount of each particular type of security held for dealing so limitation. Securities Industry Association v. Board of Governors of as not to exceed the amount of the underwriting market share the Federal Reserve System, 839 F.2d 47 (2d Cir. 1988). The court, limitation described in paragraph (2) above." 73 FEDERAL RESERVE however, stated that the 5 percent market share limitation was not BULLETIN at 485-486. adequately supported by the facts of record. Because the SIA has 2. All data are as of December 31, 1987. sought Supreme Court review of the decision, the Board believes it 3. Citicorp/Morgan/Bankers Trust, supra. The Board subsequently appropriate to retain the market share limitation until resolution of the approved similar applications by a number of other bank holding litigation. In the event the Second Circuit's decision becomes final, companies. the Board will consider a petition by Chase for relief from the 4. Section 20 of the Glass-Steagall Act (12 U.S.C. § 377) prohibits limitation. the affiliation of a member bank with "any corporation . . . engaged 6. On July 14, 1987, the Board subsequently decided that underwritprincipally in the issue, flotation, underwriting, public sale, or distri- ing and dealing in CRRs is so closely related to banking as to be a bution at wholesale or retail or through syndicate participation of proper incident thereto within the meaning of section 4(c)(8) of the stocks, bonds, debentures, notes, or other securities . . . . " BHC Act. Chemical, supra. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 393 evasion of, the provisions of the BHC Act and the York.1 Chemical operates two subsidiary banks and Board's regulations and orders issued thereunder. engages through certain of its subsidiaries in a variety The Board notes that the SIA has sought judicial of nonbanking activities. CFI is a futures commission review by the U.S. Supreme Court of the Citi- merchant ("FCM") registered with the Commodity corp/Morgan/Bankers Trust Order to which this Order Futures Trading Commission ("CFTC") that engages pertains. The Board notes that the U.S. Court of in the execution and clearance of futures contracts and Appeals for the Second Circuit has stayed the effec- options on futures contracts for bullion, foreign extiveness of that Order and subsequent ineligible secu- change, government securities, certificates of deposit, rities underwriting orders pending judicial review. In and other money market instruments that a bank may light of the pendency of this litigation, the Board has buy or sell in the cash market for its own account, determined that this Order should be stayed for such pursuant to section 225.25(b)(18) of the Board's Regtime as the stay of the prior decisions is effective. ulation Y, 12 C.F.R. § 225.25(b)(18). CFI also pro- By order of the Board of Governors, effective vides investment advice on financial futures and op- April 27, 1988. tions on futures pursuant to section 225.25(b)(19) of Regulation Y, 12 C.F.R. § 225.25(b)(19). The Board has previously approved the execution Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, and Kelley. Absent and not voting: and clearance of futures contracts on The Bond Buyer Governor Heller. Municipal Bond Index. Bankers Trust New York Corporation, 71 FEDERAL RESERVE BULLETIN 111 (1985) JAMES MCAFEE ("Bankers Trust"). The factors upon which the Board Associate Secretary of the Board based its approval decision in Bankers Trust are present in this application. Applicant's subsidiary, The Chemical Bank, has long been a major participant in Chemical New York Corporation the municipal securities market as an underwriter of New York, New York and dealer in municipal bonds and municipal notes. The Board has determined that Chemical's proposal Order Approving Application to Execute and Clear to execute and clear such futures contracts is substan- Futures Contracts on a Municipal Bond Index and tially similar to the proposal approved by the Board in to Provide Futures Advisory Services Bankers Trust, and Chemical's prior experience in the municipal securities markets indicates that CFI would Chemical New York Corporation, New York, New have the expertise to provide the proposed services. York ("Chemical"), a bank holding company within Accordingly, the Board concludes that, in the manner the meaning of the Bank Holding Company Act proposed, and subject to the conditions set forth in (12 U.S.C. § 1841 et seq.) ("BHC Act"), has applied section 225.25(b)(18) of Regulation Y, Chemical's propursuant to section 4(c)(8) of the BHC Act to engage, posal to execute and clear futures contracts on a through its subsidiary, Chemical Futures, Inc. municipal bond index is closely related to banking. ("CFI"), in the solicitation, execution and clearance With respect to the proposed advisory services, of futures contracts on a municipal bond index on such services also were authorized in Bankers Trust major commodities exchanges for non-affiliated per- and several other cases.2 Chemical proposes to prosons, and the provision of advisory services to non- vide investment and advisory services to FCM cusaffiliated persons with respect to such futures con- tomers and others. Chemical has committed to limit tracts. The proposed futures contract is a financial these advisory services so as to be consistent with the future that is based on an index of general obligation limits in section 225.25(b)(19) of Regulation Y which bonds and revenue bonds selected by The Bond Buyer. are placed on the provision of similar advisory ser- Notice of the application, affording interested per- vices.3 Based on the facts of this case, and subject to sons an opportunity to submit comments on the relation of the proposed activities to banking and on the balance of public interest factors, has been duly published (53 Federal Register 7,236 (1988)). The time for 1. All financial data are as of December 31, 1987. filing comments has expired, and the Board has con- 2. J.P. Morgan & Co., Incorporated, 70 FEDERAL RESERVE BULsidered the application and all comments received in LETIN 780 (1984); Manufacturers Hanover Corporation, 70 FEDERAL RESERVE BULLETIN 369 (1984). light of the public interest factors set forth in section 3. Section 225.25(b)(19) limits an FCM that is providing investment 4(c)(8) of the BHC Act. advice related to the futures contracts it is executing and clearing, to providing such advice to financial institutions and other financially Chemical, with total consolidated assets of $78.2 sophisticated customers that have significant dealings or holdings in billion, is the third largest banking organization in New the underlying commodities, securities, or instruments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 Federal Reserve Bulletin • June 1988 the commitments made by Applicant, the Board con- Voting for this action: Chairman Greenspan and Governors cludes that these activities are closely related to bank- Johnson, Seger, Angell, and Heller. Absent and not voting: Governor Kelley. ing. Under section 4 of the BHC Act, the Board is also required to determine that the performance of the JAMES MCAFEE Associate Secretary of the Board proposed activities by applicant "can reasonably be expected to produce benefits to the public . . . that outweigh possible adverse effects, such as undue Orders Issued Under Sections 3 and 4 of the concentration of resources, decreased or unfair com- Bank Holding Company Act petition, conflicts of interests, or unsound banking practices." 12 U.S.C. § 1843(c)(8). Constitution Bancorp of New England, Inc. Consummation of Chemical's proposal would pro- Fairfield, Connecticut vide added convenience to its clients. The Board expects that the de novo entry of Chemical into the Order Approving Acquisition of Bank Holding market for these services would increase the level of Companies competition among providers of these services already in operation. Accordingly, the Board concludes that Constitution Bancorp of New England, Inc., Fairfield, the performance of the proposed activities by Chemi- Connecticut, has applied for the Board's approval cal can reasonably be expected to provide benefits to under section 3 of the Bank Holding Company Act the public. ("Act") (12 U.S.C. § 1841 et seq.), to become a bank Moreover, there is no evidence in the record that holding company by acquiring 100 percent of Lafayconsummation of the proposed FCM activities would ette Bancorp, Inc., Bridgeport, Connecticut ("Laresult in any adverse effects such as undue concentrafayette"), and thereby to acquire indirectly Lafayette tion of resources, decreased or unfair competition, Bank and Trust Company, Bridgeport, Connecticut; conflicts of interests, or unsound banking practices. In and to acquire American Bancorp, Inc., Hamden, addition, the Board has taken into account and has Connecticut ("American"), and thereby to acquire relied on the regulatory framework established pursuindirectly American National Bank, Hamden, Conant to law by the CFTC for the trading of futures. necticut. Applicant has also applied under section The financial and managerial resources and future 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to acquire prospects of Applicant are considered consistent with DCG Acquisition, Inc., Hamden, Connecticut approval. Based upon a consideration of all the rele- ("DCG"), a nonbanking subsidiary of American, and vant facts, the Board concludes that the balance of the thereby engage in data processing activities. public interest factors that it is required to consider Notice of the applications, affording interested perunder section 4(c)(8) is favorable. Accordingly, based sons an opportunity to submit comments, has been on all the facts of record and the commitments made duly published (52 Federal Register 2,446 (1987)). The by Applicant, and subject to the conditions in this time for filing comments has expired, and the Board Order, the Board has determined that the proposed has considered the applications and all comments application should be, and hereby is, approved. This received in light of the factors set forth in sections 3(c) determination is subject to all of the conditions set and 4(c)(8) of the Act. forth in Regulation Y, including sections 225.4(d) and Applicant is a non-operating corporation formed for 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), the purpose of becoming a bank holding company by and to the Board's authority to require such modificaacquiring Lafayette and American. Lafayette is the tion or termination of the activities of a bank holding twelfth largest commercial banking organization in company or any of its subsidiaries as the Board finds Connecticut, controlling deposits of $208 million,1 necessary to assure compliance with, or to prevent representing less than 1 percent of the total deposits in evasion of, the provisions and purposes of the BHC commercial banking organizations in the state. Amer- Act and the Board's regulations and orders issued ican is the eleventh largest commercial banking orgathereunder. nization in Connecticut, controlling $258 million in The transaction shall be made not later than three deposits, also representing less than 1 percent of the months after the effective date of this Order, unless total deposits in commercial banking organizations in such period is extended for good cause by the Board or the state. Upon consummation of the proposal, Appliby the Federal Reserve Bank of New York, pursuant to delegated authority. By order of the Board of Governors, effective April 19, 1988. 1. All state banking data are as of June 30, 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 395 cant will become the seventh largest commercial bank- pursuant to which it pled guilty to a one count felony ing organization in Connecticut, controlling deposits violation of the CFTRA with respect to certain unreof $466 million, which represent 1.9 percent of the ported currency transactions and was levied a fine of total deposits in commercial banking organizations in $200,000. In addition, Bank has agreed to file addithe state. Accordingly, consummation of this proposal tional currency transaction reports for certain unrewould not result in a significant increase in banking ported transactions. The United States Attorney has resources in Connecticut. advised the Board that his investigation into these The Board has considered the effects of the proposal matters has been concluded. American Bank also has upon competition in the relevant banking markets.2 entered into a Memorandum of Understanding with American's sole subsidiary bank operates in the Hart- the Department of the Treasury with respect to the ford and New Haven, Connecticut, banking markets, unreported currency transactions. where it controls less than 6.5 percent of the total American Bank also has taken remedial action dedeposits in commercial banks in each market.3 Lafa- signed to address the potential for future CFTRA yette's sole bank subsidiary operates in the Bridgeport violations by reviewing and enhancing its CFTRA banking market,4 where it controls 7.6 percent of the compliance policies and procedures. American Bank market's total commercial bank deposits. Because has appointed a CFTRA compliance officer, imple- American does not operate a bank in any market in mented a formal CFTRA training program, and approwhich Lafayette operates a banking subsidiary, con- priate procedural manuals have been made available in summation of the proposal would not eliminate signif- all branches. In addition, American Bank has adopted icant existing competition in any relevant banking a model audit program and engaged an outside conmarket. sultant to conduct semi-annual reviews of its CFTRA In its evaluation of Applicant's managerial re- compliance. Further, examiners from the appropriate sources, the Board has considered certain violations bank supervisory authorities have reviewed the by American National Bank ("American Bank") and CFTRA procedures adopted by American Bank and Lafayette Bank and Trust Company ("Lafayette determined that they are sufficient to ensure future Bank") of the Currency and Foreign Transactions compliance with the CFTRA. The Board also has Reporting Act ("CFTRA") and the regulations consulted with appropriate enforcement agencies with thereunder.5 respect to this matter, and has considered American Lafayette Bank has implemented appropriate reme- Bancorp's past record of compliance with the law. dial measures designed to prevent a recurrence of the Based upon the foregoing and all of the facts of CFTRA violations. These measures include the estab- record, the Board concludes that the managerial relishment of a centralized exempt list, enhancement of sources of Applicant, American, Lafayette, and their the teller training program regarding large currency subsidiary banks, are consistent with approval. The transaction reporting and the implementation of com- Board also finds that the financial resources and future prehensive audit procedures. Examiners from the ap- prospects of these organizations are consistent with propriate bank supervisory authority have reviewed approval of the proposal. Considerations related to the the measures implemented by Lafayette Bank and convenience and needs of the communities to be determined that they are adequate to assure future served also are consistent with approval. compliance with the CFTRA. Applicant has also applied, pursuant to section The Board also has considered certain violations by 4(c)(8) of the Act, to acquire DCG and thereby engage American Bank of the CFTRA. In that regard, Amer- in the provision of data processing services to financial ican Bank has entered into an agreement with the institutions. These activities have been determined by United States Attorney for the District of Connecticut, the Board to be closely related to banking and permissible for bank holding companies. 12 C.F.R. § 225.25(b)(7). DCG previously conducted these activities as a subsidiary of American,6 and there is no 2. All market data are as of June 30, 1986. 3. The Hartford banking market is approximated by the Hartford evidence in the record to indicate that approval of this RMA minus the Tolland County Township of Manfield and the proposal would result in undue concentration of re- Windham County Township of Windham, plus the Windham County sources, decreased or unfair competition, conflicts of Township of Ashford, the Hartford County Township of Hartland and the Tolland County Township of Union, and the remaining portions of interest, unsound banking practices, or other adverse Plymouth and East Haddam not already included in the Hartford effects on the public interest. Accordingly, the Board RMA, all of Connecticut. The New Haven banking market is approximated by the New Haven RMA. 4. The Bridgeport banking market is approximated by the Bridgeport RMA, minus the Fairfield County Township of Newton, plus the 6. The Federal Reserve Bank of Boston, pursuant to authority New Haven County Township of Beacon Falls, all of Connecticut. delegated by the Board, approved American's acquisition of DCG on 5. 31 U.S.C. § 5311 et seq., 31 C.F.R. § 103. November 7, 1986. 73 FEDERAL RESERVE BULLETIN 75 (1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 Federal Reserve Bulletin • June 1988 has determined that the balance of the public interest 225.23(b)), and to the Board's authority to require factors it must consider under section 4(c)(8) of the such modification or termination of the activities of the Act is consistent with approval of the application to holding company or any of its subsidiaries as the acquire DCG. Board finds necessary to assure compliance with, or to Based on the foregoing and other facts of record, the prevent evasion of, the provisions and purposes of the Board has determined that the applications under Act and the Board's regulations and orders issued sections 3 and 4 of the Act should be, and hereby are, thereunder. approved. The acquisition of American and Lafayette By order of the Board of Governors, effective shall not be consummated before the thirtieth calendar April 11, 1988. day following the effective date of this Order or later than three months after the effective date of this Voting for this action: Chairman Greenspan and Governors Order, unless such period is extended for good cause Seger, Angell, Heller, and Kelley. Absent and not voting: by the Board or the Federal Reserve Bank of Boston, Governor Johnson. pursuant to delegated authority. The determinations as to the nonbanking activities are subject to all of the conditions set forth in Regulation Y, including sections JAMES MCAFEE 225.4(d) and 225.23(b) (12 C.F.R. §§ 225.4(d) and Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Aspen Bank Shares, Ltd., Pitkin County Bank and Trust, Kansas City April 7, 1988 Aspen, Colorado Aspen, Colorado Bancorp New Jersey, Inc., New Jersey Savings Bank, New York April 22, 1988 Somerville, New Jersey Somerville, New Jersey Bath State Bancorp, The Bath State Bank, Chicago March 24, 1988 Bath, Indiana Bath, Indiana Beverly Bancorporation, Inc., Martinsville State Bank, Chicago April 8, 1988 Chicago, Illinois Martinsville, Illinois Buffalo Bancshares, Inc., The First State Bank of Gage, Kansas City April 7, 1988 Buffalo, Oklahoma Gage, Oklahoma Citizens Bancshares of Beebe, Citizens Bank, St. Louis April 6, 1988 Inc., Beebe, Arkansas Beebe, Arkansas Citizens Financial Group, Inc., Citizens Savings Bank, Boston April 25, 1988 Providence, Rhode Island Providence, Rhode Island CNB, Inc., Citizens Bank of Live Oak, Atlanta March 31, 1988 Lake City, Florida Live Oak, Florida Citizens National Bancorp, Inc., Citizens National Bank of Athens, Atlanta April 1, 1988 Athens, Tennessee Athens, Tennessee City National Bancorporation, City National Bank of Washington, Richmond April 4, 1988 Inc., Washington, D.C. Washington, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 397 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Columbia Bancorp, The Columbia Bank, Richmond April 1, 1988 Columbia, Maryland Columbia, Maryland Commerce Bancshares, Inc., Commerce Bank - Nixa, N.A., Kansas City April 22, 1988 Kansas City, Missouri Nixa, Missouri CommunityBanc, Inc., Crooksville Bank, Cleveland April 19, 1988 Crooksville, Ohio Crooks ville, Ohio Community Bancshares of Alva, Community National Bank, Kansas City April 20, 1988 Inc., Alva, Oklahoma Alva, Oklahoma Community Financial Community Bank & Trust Atlanta April 12, 1988 Corporation, Company, Mableton, Georgia Mableton, Georgia Community National Bancorp, Community National Bank and New York April 6, 1988 Inc., Trust Company of New York, Staten Island, New York Staten Island, New York Delmar Bancorp, The Bank of Delmar, Richmond April 26, 1988 Delmar, Maryland Delmar, Maryland Golden Bancorp, Inc., The Commercial Bank of Bluefield, Richmond April 25, 1988 Milton, West Virginia Bluefield, West Virginia ENB Financial Corporation, Elkridge National Bank, Richmond April 27, 1988 Elkridge, Maryland Elkridge, Maryland Fairland Holding Company, Inc., The First National Bank of Fairland, Kansas City April 1, 1988 Neosho, Missouri Fairland, Oklahoma Granby Bancshares, Inc., Neosho, Missouri Fifth Third Bancorp, Security Bank, Inc., Cleveland April 6, 1988 Cincinnati, Ohio Covington, Kentucky First Alma Bancshares, Inc., The First National Bank in Alma, Kansas City April 27, 1988 Alma, Kansas Alma, Kansas First American Corporation, First American Bancshares, Inc., Atlanta March 31, 1988 Nashville, Tennessee Cooke ville, Tennessee FirstBancorp, Inc., The First National Bank of the Atlanta April 8, 1988 Marathon, Florida Florida Keys, Marathon, Florida First Colony Bancshares, Inc., First Colony Bank, Atlanta April 4, 1988 Alpharetta, Georgia Alpharetta, Georgia The First Corporation, The First National Bank of Opelika, Atlanta April 6, 1988 Opelika, Alabama Opelika, Alabama First Dubuque Corp., ANDREW FINANCIAL CORP., Chicago April 14, 1988 Dubuque, Iowa Bellevue, Iowa F.N.B.C. of La Grange, Inc., Wesco Investment Corporation, Chicago April 15, 1988 La Grange, Illinois La Grange, Illinois First United Bancorporation, Spartanburg National Bank (in Richmond April 12, 1988 Anderson, South Carolina organization), Spartanburg, South Carolina Fourth Financial Corporation, Mid-America Bancshares, Inc., Kansas City April 15, 1988 Inc., Wichita, Kansas Wichita, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 Federal Reserve Bulletin • June 1988 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Governors Bank Corporation, Governors Bank, Atlanta March 30, 1988 West Palm Beach, Florida West Palm Beach, Florida Independent Bancshares, Inc., Independent Bank of Ocala, Atlanta March 28, 1988 Ocala, Florida Ocala, Florida Jackson Hole Bancshares Bank of Jackson Hole, Kansas City April 11, 1988 Corporation, Jackson, Wyoming Jackson, Wyoming Key Centurion Bancshares, Inc., The Lincoln National Bank of Richmond April 5, 1988 Charleston, West Virginia Hamlin, Hamlin, West Virginia Key Centurion Bancshares, Inc., The National Bank of Commerce of Richmond April 11, 1988 Charleston, West Virginia Williamson, Williamson, West Virginia Landmark/Community Bancorp, Landmark Financial Corporation, Boston April 26, 1988 Inc., Hartford, Connecticut Hartford, Connecticut Community Bancorp, Inc., Glastonbury, Connecticut SBT Corp., Old Saybrook, Connecticut MNC Financial, Inc., Atlantic Coast Mortgage Company, Richmond March 30, 1988 Baltimore, Maryland Fairfax, Virginia National City Bancshares, Inc., The Peoples National Bank of St. Louis March 24, 1988 Evansville, Indiana Grayville, Grayville, Illinois Newberry Bancorp, Inc., Newberry State Bank, Minneapolis April 25, 1988 Newberry, Michigan Newberry, Michigan Old National Bancorp, The Peoples National Bank in St. Louis April 22, 1988 Evansville, Indiana Lawrenceville, Lawrenceville, Illinois Oxford Bank Corporation, Oxford Bank, Chicago April 8, 1988 Oxford, Michigan Oxford, Michigan Park Ridge Bancshares, Inc., Bank of Park Ridge, Chicago April 6, 1988 Stevens Point, Wisconsin Park Ridge, Wisconsin Putnam-Greene Financial The Pembroke State Bank, Atlanta April 1, 1988 Corporation, Pembroke, Georgia Eatonton, Georgia Shelby Investments, Inc., Village Bank of Great Falls, Minneapolis April 27, 1988 Great Falls, Montana Great Falls, Montana S. Y. Bancorp, Inc., Stock Yards Bank and Trust St. Louis April 22, 1988 Louisville, Kentucky Company, Louisville, Kentucky Thomson Holdings, Inc., Bank of Centerville, Minneapolis April 8, 1988 Centerville, South Dakota Centerville, South Dakota W B BANCORP, INC., First State Bank, Chicago April 11, 1988 New Berlin, Illinois New Berlin, Illinois W.T.B. Financial Corporation, Norban Financial Group, Inc., San Francisco April 7, 1988 Spokane, Washington Coeur d'Alene, Idaho Warrior Bank Corporation, Inc. Community State Bank, Kansas City March 25, 1988 Cashion, Oklahoma Cashion, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 399 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Way mar Bancorporation, First Bank and Trust, Chicago April 7, 1988 Spirit Lake, Iowa Spirit Lake, Iowa West Iowa Banc Corp., The Farmers State Bank, Chicago March 25, 1988 Marcus, Iowa Marcus, Iowa Wheeler Bancshares, Inc. First National Bank in Wheeler, Dallas April 12, 1988 Wheeler, Texas Wheeler, Texas Section 4 Nonbanking Reserve Effective Applicant Activity/Company Bank date Bank Corporation of Georgia, Atlanta Capital Corporation, Atlanta April 11, 1988 Macon, Georgia Roswell, Georgia engage de novo in finance leasing of personal and real properties Bank South Corporation, Financial Data Dimensions, Inc., Atlanta March 28, 1988 Atlanta, Georgia Thomson, Georgia BSD Bancorp, Inc., engage in trust activities San Francisco March 31, 1988 San Diego, California First American Bank Corporation, Keystone Data Corporation, Chicago March 25, 1988 Elk Grove Village, Illinois Kankakee, Illinois First National Holding Company, Black Insurance Agency, Kansas City April 14, 1988 Inc., Fullerton, Nebraska Fullerton, Nebraska Fleet/Norstar Financial Group, engage in the purchase and sale of Boston March 29, 1988 Inc., gold and silver bullion, bars, Albany, New York rounds and coins for the account of its customers Progressive Bank, Inc., The Stockbridge Group, Ltd., New York April 1, 1988 Pawling, New York Hopewell Junction, New York The Sanwa Bank Limited, Lake Leasing Corporation, San Francisco April 26, 1988 Osaka, Japan Rochester, Michigan Sovran Financial Corporation, Commerce Union Financial Richmond April 7, 1988 Norfolk, Virginia Markets, Inc., Nashville, Tennessee Sections 3 and 4 . .. Bank(s)/ Nonbanking Reserve Effective PP Company Bank date Southern Development Elk Horn Bancshares, Inc., St. Louis March 31, 1988 Bancorporation, Inc., Arkadelphia, Arkansas Little Rock, Arkansas Opportunity Lands Corporation, Little Rock, Arkansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 Federal Reserve Bulletin • June 1988 Section 3 and 4—Continued . .. Bank(s)/Nonbanking Reserve Effective p Company Bank date Stuart Family Partnership, First Commerce Bancshares, Inc., Kansas City April 15, 1988 Lincoln, Nebraska Lincoln, Nebraska The Catherine Stuart Family Partnership, Lincoln, Nebraska The James Stuart, Jr. Family Partnership, Lincoln, Nebraska The Scott Stuart Family Partnership, Lincoln, Nebraska ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date Central Bank, Broad Top City Office of Mellon Philadelphia March 28, 1988 Hollidaysburg, Pennsylvania Bank (Central), N.A., State College, Pennsylvania The Commercial Savings Bank, The Jipson-Carter State Bank, Chicago April 15, 1988 Adrian, Michigan Blissfield, Michigan Commonwealth Bank, Commonwealth Bank-Lamar, N.A. Dallas April 1, 1988 Arlington, Texas Arlington, Texas Old Kent Bank of Kalamazoo, Old Kent Bank of Allegan, Chicago April 22, 1988 Kalamazoo, Michigan Allegan, Michigan Old Kent Bank of Battle Creek, Battle Creek, Michigan Old Kent Bank of South Haven, South Haven, Michigan Old Kent Bank of Three Rivers, Three Rivers, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 401 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Bonilla v. Board of Governors, No. 88-1464 (7th Cir., Barrett v. Volcker, No. 87-2280 (D.D.C., filed filed March 11, 1988). Aug. 17, 1987). Cohen v. Board of Governors, No. 88-1061 (D.N.J., Northeast Bancorp v. Board of Governors, No. filed March 7, 1988). 87- 1365 (D.C. Cir., filed July 31, 1987). Irving Bank Corporation v. Board of Governors, No. National Association of Casualty & Insurance Agents 88-1176 (D.C. Cir., filed March 1, 1988). v. Board of Governors, Nos. 87-1354, 87-1355 (D.C. Stoddard v. Board of Governors, No. 88-1148 (D.C. Cir., filed July 29, 1987). Cir., filed Feb. 25, 1988). The Chase Manhattan Corporation v. Board of Gov- Securities Industry Association v. Board of Gover- ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987). nors, No. 87-4161 (2d Cir., filed Dec. 15, 1987). Securities Industry Association v. Board of Gover- Independent Insurance Agents of America, Inc. v. nors, Nos. 87-4091, 87-4093, 87-4095 (2d Cir., filed Board of Governors, No. 87-1686 (D.C. Cir., filed July 1 and July 15, 1987). Nov. 19, 1987). Lewis v. Board of Governors, Nos. 87-3455, 87-3545 National Association of Casualty and Surety Agents, (11th Cir., filed June 25, Aug. 3, 1987). et al., v. Board of Governors, Nos. 87-1644, Securities Industry Association v. Board of Gover- 87-1801, 88-1001 88-1206, 88-1245, 88-1270 (D.C. nors, et al. No. 87-4041 and consolidated cases (2d Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, March 18, Cir., filed May 1, 1987). March 30, April 7, 1988). Securities Industry Association v. Board of Gover- Teichgraeber v. Board of Governors, No. 87-2505-0 nors, et al., No. 87-1169 (D.C. Cir., filed April 17, (D. Kan., filed Oct. 16, 1987). 1987). Securities Industry Association v. Board of Gover- Independent Community Bankers Association of nors, No. 87-4135 (2d Cir., filed Oct. 8, 1987). South Dakota v. Board of Governors, No. 86-5373 Independent Insurance Agents of America, Inc. v. (8th Cir., filed Oct. 3, 1986). Board of Governors, No. 87-4118 (2d Cir., filed Jenkins v. Board of Governors, No. 86-1419 (D.C. Sept. 17, 1987). Cir., filed July 18, 1986). Citicorp v. Board of Governors, No. 87-1475 (D.C. CBC, Inc. v. Board of Governors, No. 86-1001 (10th Cir., filed Sept. 9, 1987). Cir., filed Jan. 2, 1986). Securities Industry Association v. Board of Gover- Melcher v. Federal Open Market Committee, No. nors, No. 87-4115 (2d Cir., filed Sept. 9, 1987). 87-1546 (S.Ct., filed April 30, 1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks A22 Gross demand deposits—individuals, MONEY STOCK AND BANK CREDIT partnerships, and corporations A3 Reserves, money stock, liquid assets, and debt measures A4 Reserves of depository institutions, Reserve FINANCIAL MARKETS Bank credit A23 Commercial paper and bankers dollar A5 Reserves and borrowings—Depository acceptances outstanding institutions A23 Prime rate charged by banks on short-term A6 Selected borrowings in immediately available business loans funds—Large member banks A24 Interest rates—money and capital markets A25 Stock market—Selected statistics A26 Selected financial institutions—Selected assets POLICY INSTRUMENTS and liabilities A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions FEDERAL FINANCE A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays FEDERAL RESERVE BANKS A30 Federal debt subject to statutory limitation A30 Gross public debt of U.S. Treasury—Types and A10 Condition and Federal Reserve note statements ownership All Maturity distribution of loan and security A31 U.S. government securities dealers— holdings Transactions A32 U.S. government securities dealers—Positions and financing MONETARY AND CREDIT AGGREGATES A3 3 Federal and federally sponsored credit agencies—Debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock, liquid assets, and debt measures SECURITIES MARKETS AND A15 Bank debits and deposit turnover CORPORATE FINANCE A16 Loans and securities—All commercial banks A34 New security issues—State and local governments and corporations COMMERCIAL BANKING INSTITUTIONS A35 Open-end investment companies—Net sales and asset position A17 Major nondeposit funds A35 Corporate profits and their distribution A18 Assets and liabilities, last-Wednesday-of-month A36 Nonfinancial corporations—Assets and series liabilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

45 Federal Reserve Bulletin • June 1988 A36 Total nonfarm business expenditures on new A55 Foreign branches of U.S. banks—Balance sheet plant and equipment data A37 Domestic finance companies—Assets and A57 Selected U.S. liabilities to foreign official liabilities and business credit institutions REAL ESTATE REPORTED BY BANKS IN THE UNITED STATES A38 Mortgage markets A57 Liabilities to and claims on foreigners A39 Mortgage debt outstanding A58 Liabilities -to foreigners A60 Banks' own claims on foreigners A61 Banks' own and domestic customers' claims on foreigners CONSUMER INSTALLMENT CREDIT A61 Banks' own claims on unaffiliated foreigners A40 Total outstanding and net change A62 Claims on foreign countries—Combined A41 Terms domestic offices and foreign branches FLOW OF FUNDS REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit A63 Liabilities to unaffiliated foreigners markets A64 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics SECURITIES HOLDINGS AND TRANSACTIONS A65 Foreign transactions in securities SELECTED MEASURES A66 Marketable U.S. Treasury bonds and notes— Foreign transactions A44 Nonfinancial business activity—Selected measures A45 Labor force, employment, and unemployment INTEREST AND EXCHANGE RATES A46 Output, capacity, and capacity utilization A47 Industrial production—Indexes and gross value A67 Discount rates of foreign central banks A49 Housing and construction A67 Foreign short-term interest rates A50 Consumer and producer prices A68 Foreign exchange rates A51 Gross national product and income A52 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases, and Special International Statistics Tables S UMMAR Y STA TISTICS SPECIAL TABLES A53 U.S. international transactions—Summary A70 Assets and liabilities of commercial banks, A54 U.S. foreign trade December 31, 1987 A54 U.S. reserve assets A76 Assets and liabilities of U.S. branches and A54 Foreign official assets held at Federal Reserve agencies of foreign banks, December 31, 1987 Banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1987 1988 1987 1988 Q2 Q3 Q4 Q1 Nov. Dec. Jan. Feb.' Mar. Reserves of depository institutions2 1 Total 8.0 -1.6 1.4 3.3 -10.4 -11.4 18.4 2.5 3.7 2 Required 8.4 -.5 .3 2.8 -6.4 -13.8 13.0 6.0 8.2 3 Nonborrowed 5.4 -.4 1.2 1.3 -4.0 -14.7 12.2 17.0 -24.3 4 Monetary base3 6.9 5.1 7.7 8.7 6.9 3.1 16.6 4.7 5.2 Concepts of money, liquid assets, and debt4 5 Ml 6.6 .8 3.9' 3.9 -5.6 -3.(V 12.9^ 1.1 5.8 6 M2 2.7 2.8 3.9' 6.8 .8' 1.9r 10.0 8.7 9.2 7 M3 4.6 4.4' 5.4' 6.6 4.8r 1.4 8.3' 9.8 7.1 8 L 4.1 4.3' 5.8' n.a. 3.3' y 10.6' 9.0 n.a. 9 Debt 8.9 8.2 9.8 9.9 11.6 8.7 8.7' 11.2 n.a. Nontrgnsaction components 10 In M25 1.3 3.5 3.8r 7.9 3.0' 3.6 9.0 11.4 10.4 11 In M3 only6 12.6' 10.8r ii. r 5.8 20.2 -.3 1.9' 14.0 -.9 Time and savings deposits Commercial banks 12 Savings 22.4 10.1 .7 6.3 -1.3 .0 5.4 13.4 15.2 13 Small-denomination time8 -2.7 7.4 14.8 13.6 23.7 9.4 10.6 17.3 11.9 14 Large-denomination time9'10 17.1 6.8 10.5 2.2 18.1 4.5 -12.2 13.5 3.0 Thrift institutions 15 Savings 19.2 7.0 -3.8 -2.4 -9.1 -4.1 -3.6 -.5 7.7 16 Small-denomination time 1.2 9.3 16.0 21.4 25.9 19.4 18.4' 25.5 18.4 17 Large-denomination time9 -5.1 9.9 22.2 15.4 25.6 23.5 10.4 16.2 1.5 Debt components4 18 Federal 8.8 5.9 7.5 9.1 12.6 8.0 5.1 11.3 n.a. 19 Nonfederal 9.0 9.0 10.6 10.2 11. r 8.9 9.8' 11.2 n.a. 20 Total loans and securities at commercial banks" 8.2' 6.2 5.5 4.8 2.6 -1.0 5.9 8.3 8.2 1. Unless otherwise noted, rates of change are calculated from average institutions and money market funds. Also excludes all balances held by U.S. amounts outstanding in preceding month or quarter. commercial banks, money market funds (general purpose and broker-dealer), 2. Figures incorporate adjustments for discontinuities associated with the foreign governments and commercial banks, and the U.S. government. implementation of the Monetary Control Act and other regulatory changes to M3: M2 plus large-denomination time deposits and term RP liabilities (in reserve requirements. To adjust for discontinuities due to changes in reserve amounts of $100,000 or more) issued by commercial banks and thrift institutions, requirements on reservable nondeposit liabilities, the sum of such required term Eurodollars held by U.S. residents at foreign branches of U.S. banks reserves is subtracted from the actual series. Similarly, in adjusting for discon- worldwide and at all banking offices in the United Kingdom and Canada, and tinuities in the monetary base, required clearing balances and adjustments to balances in both taxable and tax-exempt, institution-only money market mutual compensate for float also are subtracted from the actual series. funds. Excludes amounts held by depository institutions, the U.S. government, 3. The monetary base not adjusted for discontinuities consists of total money market funds, and foreign banks and official institutions. Also subtracted reserves plus required clearing balances and adjustments to compensate for float is the estimated amount of overnight RPs and Eurodollars held by institution-only at Federal Reserve Banks plus the currency component of the money stock less money market mutual funds. the amount of vault cash holdings of thrift institutions that is included in the L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term currency component of the money stock plus, for institutions not having required Treasury securities, commercial paper and bankers acceptances, net of money reserve balances, the excess of current vault cash over the amount applied to market mutual fund holdings of these assets. satisfy current reserve requirements. After the introduction of contemporaneous Debt: Debt of domestic nonfinancial sectors consists of outstanding credit reserve requirements (CRR), currency and vault cash figures are measured over market debt of the U.S. government, state and local governments, and private the weekly computation period ending Monday. nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Before CRR, all components of the monetary base other than excess reserves sumer credit (including bank loans), other bank loans, commercial paper, bankers are seasonally adjusted as a whole, rather than by component, and excess acceptances, and other debt instruments. The source of data on domestic reserves are added on a not seasonally adjusted basis. After CRR, the seasonally nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt adjusted series consists of seasonally adjusted total reserves, which include data are based on monthly averages. Growth rates for debt reflect adjustments for excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted discontinuities over time in the levels of debt presented in other tables. currency component of the money stock plus the remaining items seasonally 5. Sum of overnight RPs and Eurodollars, money market fund balances adjusted as a whole. (general purpose and broker-dealer), MMDAs, and savings and small time 4. Composition of the money stock measures and debt is as follows: deposits less the estimated amount of demand deposits and vault cash held by Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults thrift institutions to service their time and savings deposit liabilities. of depository institutions; (2) travelers checks of nonbank issuers; (3) demand 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, deposits at all commercial banks other than those due to depository institutions, money market fund balances (institution-oniy), less a consolidation adjustment the U.S. government, and foreign banks and official institutions less cash items in that represents the estimated amount of overnight RPs and Eurodollars held by the process of collection and Federal Reserve float; and (4) other checkable institution-only money market mutual funds. deposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- 7. Excludes MMDAs. matic transfer service (ATS) accounts at depository institutions, credit union 8. Small-denomination time deposits—including retail RPs—are those issued share draft accounts, and demand deposits at thrift institutions. in amounts of less than $100,000. All IRA and Keogh accounts at commercial M2: M1 plus overnight (and continuing contract) repurchase agreements (RPs) banks and thrifts are subtracted from small time deposits. issued by all commercial banks and overnight Eurodollars issued to U.S. residents 9. Large-denomination time deposits are those issued in amounts of $100,000 by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts or more, excluding those booked at international banking facilities. (MMDAs), savings and small-denomination time deposits (time deposits—includ- 10. Large-denomination time deposits at commercial banks less those held by ing retail RPs—in amounts of less than $100,000), and balances in both taxable and money market mutual funds, depository institutions, and foreign banks and tax-exempt general purpose and broker-dealer money market mutual funds.Ex- official institutions. cludes individual retirement accounts (IRA) and Keogh balances at depository 11. Changes calculated from figures shown in table 1.23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • June 1988 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending FFFaaaccctttooorrrsss 1988 1988 Jan. Feb. Mar. Feb. 17 Feb. 24 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 246,090 238,789 239,867 239,738 238,397 239,403 238,216 240,698 239,716 240,581 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 219,855 214,625 215,545 212,608 215,898 216,354 215,219 216,630 214,621 215,325 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 219,069 214,625 215,545 212,608 215,898 216,354 215,219 216,630 214,621 215,325 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 786 0 0 0 0 0 0 0 0 0 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 7,806 7,402 7,401 7,402 7,402 7,402 7,402 7,402 7,401 7,399 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,503 7,402 7,401 7,402 7,402 7,402 7,402 7,402 7,401 7,399 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 303 0 0 0 0 0 0 0 0 0 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 1,028 353 1,690 509 340 384 690 1,311 2,537 2,465 1111100000 FFFFFllllloooooaaaaattttt 1,784 1,627 622 3,920 617 672 623 461 461 509 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 15,617 14,782 14,609 15,299 14,141 14,591 14,282 14,893 14,696 14,882 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,074 11,065 11,063 11,065 11,064 11,063 11,063 11.063 11,063 11,062 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt............... 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 18,205 18,265 18,315 18,263 18,277 18,290 18,300 18,310 18,320 18,330 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 226,414 224,337 225,434 225,042 224,506 223,743 224,799 225,685 225,695 225,708 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss22222 441 449 468 448 452 456 460 467 472 477 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 5,774 3,711 2,894 3,425 4,111 2,921 2,951 3,309 2,676 2,568 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 274 241 238 230 240 265 214 249 213 226 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 2,233 2,301 1,909 2,002 2,193 2,493 1,964 1,823 1,914 1,863 2222200000 OOOOOttttthhhhheeeeerrrrr 432 335 408 321 296 446 335 380 428 483 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 7,432 7,303 7,153 8,193 7,166 7,112 7,046 7,114 7,262 7,214 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss33333 37,389 34,461 35,758 34,424 33,793 36,339 34,829 36.064 35,458 36,451 End-of-month figures Wednesday figures 1988 1988 Jan. Feb. Mar. Feb. 17 Feb. 24 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 242,517 239,795 242,542 242,390 237,250 239,031 238,243 241,227 241,387 240,110 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 218,411 216,891 217,4% 217,534 214,901 215,546 213,583 215,680 215,579 215,160 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 218,411 216,891 217,496 217,534 214,901 215,546 213,583 215,680 215,579 215,160 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 0 0 0 0 0 0 0 0 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 7,423 7,402 7,399 7,402 7,402 7,402 7,402 7,402 7,399 7,399 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,423 7,402 7,399 7,402 7,402 7,402 7,402 7,402 7,399 7,399 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 0 0 0 0 0 0 0 0 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 333 336 2,311 462 253 525 2,148 2,967 3,194 2,134 3333322222 FFFFFllllloooooaaaaattttt 396 897 298 2,804 433 1,220 629 488 349 430 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 15,954 14,269 15,038 14,188 14,261 14,338 14,481 14,690 14,866 14,987 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,068 11,063 11,063 11,065 11,063 11,063 11,063 11,063 11,062 11,063 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt............... 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 18,233 18,289 18,339 18,275 18,289 18,299 18,309 18,319 18,329 18,339 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 223,188 223,615 227,099 225,292 224,027 224,178 225,419 225,934 225,684 226,492 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 438 457 479 451 456 456 466 470 477 475 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 10,276 2,472 2,403 4,986 2,505 3,034 3,300 3,221 2,145 3,190 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 343 343 534 243 206 252 267 265 225 207 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,674 1,658 1,671 1,681 1,681 1,658 1,657 1,654 1,654 1,671 4444422222 OOOOOttttthhhhheeeeerrrrr 315 438 436 314 274 392 329 524 361 479 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,926 7,139 7,234 6,874 6,997 6,880 6,952 6,932 7,092 7,047 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 33,664 38,043 37,106 36,908 35,475 36,561 34,244 36,627 38,158 34,969 1. Includes securities loaned—fully guaranteed by U.S. government securities stock. Revised data not included in this table are available from the Division of pledged with Federal Reserve Banks—and excludes any securities sold and Research and Statistics, Banking Section. scheduled to be bought back under matched sale-purchase transactions. 3. Excludes required clearing balances and adjustments to compensate for 2. Revised for periods between October 1986 and April 1987. At times during float. this interval, outstanding gold certificates were inadvertently in excess of the gold NOTE. For amounts of currency and coin held as reserves, see table 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Monthly averages9 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1985 1986 1987 1987 1988 Dec. Dec. Dec. Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Reserve balances with Reserve Banks2 27,620 37,360 37,673 35,616 36,685 37,249 37,453 37,673 37,485 34,211 ?. Total vault cash 22,953 24,079 26,155 24,644 24,854 25,587 25,431 26,155 26,919 28,119 3 Vault4 20,522 22,199 24,449 22,745 23,128 23,857 23,752 24,449 25,155 25,836 4 Surplus 2,431 1,879 1,706 1,899 1,726 1,730 1,679 1,706 1,764 2,283 5 Total reserves6 48,142 59,560 62,123 58,361 59,813 61,106 61,205 62,123 62,640 60,047 6 Required reserves 47,085 58,191 61,094 57,329 59,020 59,977 60,282 61,094 61,345 58,914 7 Excess reserve balances at Reserve Banks 1,058 1,369 1,029 1,032 793 1,129 923 1,029 1,295 1,133 8 Total borrowings at Reserve Banks 1,318 827 777 647 940 943 625 777 1,082 396 9 Seasonal borrowings at Reserve Banks 56 38 93 279 231 189 126 93 59 75 10 Extended credit at Reserve Banks8 499 303 483 132 409 449 394 483 372 205 Biweekly averages of daily figures for weeks ending 1987 1988 Dec. 16 Dec. 30 Jan. 13 Jan. 27 Feb.10 Feb. 24 Mar. 9 Mar. 23 Apr. 6 Apr. 20 11 Reserve balances with Reserve Banks2 38,272 37,055 39,175 37,002 33,691 34,087 35,577 35,761 37,000 39,133 1? Total vault cash3 25,372 26,960 26,566 26,533 29,417 27,954 25,987 26,224 25,336 25,205 n Vault4 23,824 25,105 24,937 24,840 26,965 25,673 23,999 24,330 23,610 23,699 14 Surplus 1,549 1,855 1,629 1,694 2,452 2,282 1,988 1,894 1,726 1,507 15 Total reserves 62,095 62,160 64,112 61,842 60,656 59,759 59,576 60,091 60,610 62,832 16 Required reserves ^ 60,890 61,354 62,805 60,554 59,368 58,688 58,600 59,188 59,693 62,139 17 Excess reserve balances at Reserve Banks 1,206 806 1,307 1,288 1,288 1,071 976 903 917 693 18 Total borrowings at Reserve Banks 815 671 1,945 508 287 425 537 1,924 2,817 3,619 19 Seasonal borrowings at Reserve Banks 83 102 66 54 55 77 111 123 122 124 20 Extended credit at Reserve Banks8 653 316 485 332 144 232 255 1,685 2,494 3,277 1. These data also appear in the Board's H.3 (502) release. For address, see in- adjustments to compensate for float, plus vault cash used to satisfy reserve side front cover. requirements. Such vault cash consists of all vault cash held during the lagged 2. Excludes required clearing balances and adjustments to compensate for computation period by institutions having required reserve balances at Federal float. Reserve Banks plus the amount of vault cash equal to required reserves during the 3. Dates refer to the maintenance periods in which the vault cash can be used maintenance period at institutions having no required reserve balances. to satisfy reserve requirements. Under contemporaneous reserve requirements, 7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy maintenance periods end 30 days after the lagged computation periods in which reserve requirements less required reserves. the balances are held. 8. Extended credit consists of borrowing at the discount window under the 4. Equal to all vault cash held during the lagged computation period by institutions having required reserve balances at Federal Reserve Banks plus the terms and conditions established for the extended credit program to help amount of vault cash equal to required reserves during the maintenance period at depository institutions deal with sustained liquidity pressures. Because there is institutions having no required reserve balances. not the same need to repay such borrowing promptly as there is with traditional 5. Total vault cash at institutions having no required reserve balances less the short-term adjustment credit, the money market impact of extended credit is amount of vault cash equal to their required reserves during the maintenance similar to that of nonborrowed reserves. period. 9. Before February 1984, data are prorated monthly averages of weekly 6. Total reserves not adjusted for discontinuities consist of reserve balances averages; beginning February 1984, data are prorated monthly averages of with Federal Reserve Banks, which exclude required clearing balances and biweekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • June 1988 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1987 week ending Monday MMaattuurriittyy aanndd ssoouurrccee Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Nov. 2 Nov. 9 Nov. 16 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 70,262 66,374 74,386 76,610 75,793 74,961 75,965 79,120 76,821 2 For all other maturities 8,888 9,170 8,209 8,611 9,040 9,384 99,,778811 1100,,334411 1100,,335533 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 27,159 25,696 25,513 26,970 24,791 23,348 24,574 25,943 26,635 4 For all other maturities 6,895 6,773 5,978 6,562 7,056 8,487 8,510 8,645 8,238 Repurchase agreements on U.S. government and federal agency securities in immediately available funds Brokers and nonbank dealers in securities 5 For one day or under continuing contract 13,289 13,685 15,505 14,496 15,254 14,825 15,544 13,351 13,080 6 For all other maturities 15,032 15,720 12,059 11,934 11,053 12,021 12,306 1122,,442244 1133,,008800 All other customers 7 For one day or under continuing contract 26,808 26,957 27,240 26,338 26,758 28,608 28,666 28,274 27,616 8 For all other maturities 8,943 8,891 8,054 8,611 7,761 9,044 9,710 10,277 10,209 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 30,303 29,348 33,209 30,926 33,064 36,169 35,913 33,803 34,054 10 To all other specified customers2 14,172 14,600 14,751 12,971 13,429 14,211 14,502 14,362 14,889 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. 2. Brokers and nonbank dealers in securities; other depository institutions; These data also appear in the Board's H.5 (507) release. For address, see inside foreign banks and official institutions; and United States government agencies, front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels AAddjjuussttmmeenntt ccrreeddiitt Extended credit2 aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk 4/2 O 9 n /8 8 Ef d fe a c te ti ve Pre ra v t i e o us 4/2 O 9 n /8 8 Ef d fe a c te ti ve Pre r v at i e o us 4/2 O 9 n /8 8 Ef d fe a c te ti ve Pre r v at i e o us Effective date Boston 6 9/9/87 5to 6 9/9/87 5 Vl 7.40 4/21/88 7.20 4/7/88 New York 9/4/87 9/4/87 4/21/88 4/7/88 Philadelphia 9/4/87 9/4/87 4/21/88 4/7/88 Cleveland 9/4/87 9/4/87 4/21/88 4/7/88 Richmond 9/5/87 9/5/87 4/21/88 4/7/88 Atlanta 9/4/87 9/4/87 4/21/88 4/7/88 Chicago 9/4/87 9/4/87 4/21/88 4/7/88 St. Louis 9/9/87 9/9/87 4/21/88 4/7/88 Minneapolis 9/8/87 9/8/87 4/21/88 4/7/88 Kansas City 9/4/87 9/4/87 4/21/88 4/7/88 Dallas 9/11/87 9/11/87 4/21/88 4/7/88 San Francisco ... 6 9/9/87 5Vl 6 9/9/87 5</> 7.40 4/21/88 7.20 4/7/88 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1980—July 28 10-11 10 1984—Apr. 9 8to-9 9 1978-—Jan. 2 9 0 6- 6 6 t o to 6 6V t 4 o Sept. 2 2 9 6 1 11 0 1 11 0 Nov. 2 1 1 3 8to 9 - 9 9 m May 1 1 1 2 6 V 1 i- 1 7 7 N D o ec v . . 1 5 7 12 1 - 2 1 3 1 1 2 3 Dec. 2 2 4 6 8 8 to 8 8 to July 3 7-7 V* 7'/4 10 71/4 7'/4 1981—May 5 13-14 14 1985—May 20 7to-8 7to Aug. 21 73/4 73/4 8 14 14 24 1 Vi 7to Sept. 22 8 8 Nov. 2 13-14 13 Oct. 16 8-8'/! m 6 13 13 1986—Mar. 7 1-1 Vi 7 20 m 8 Vl Dec. 4 12 12 10 1 7 Nov. 1 8to-9to 9Vi Apr. 21 6to-7 6to 3 9to 9 Vl 1982—July 2 2 0 3 llt 1 o - \ 1 V 2 i 1 1 1 1 1 V /! l J A u u ly g . 1 1 1 2 5to 6 - 6 6 5 to 1979--Jul y 20 10 10 Aug. 2 11-11 to 11 22 5 Vl 5 to Aug. 2 1 0 7 10 1 - 0 1 t 0 o '/! 1 io 0 t W o 1 3 6 io 1 t 1 o 1 lo 1 w 1987—Sept. 4 5to-6 6 O Se c p t. t . 2 1 1 8 1 0 9 1 1 0 1 t 1 1 o - 2 1 1 - 2 l 1 1 1 1 n 2 2 1 Oct. 1 2 3 1 2 7 0 3 1 9 0 t 9 o - 1 1 t - o 0 0 1 t 0 o 9 9 1 1 0 V V 0 l l In effect Apri 1 l 1 2 9, 1988 6 6 6 6 Nov. 22 9-9'A 9 1980--Feb. 15 12-13 13 26 9 9 19 13 13 Dec. 14 8>/2-9 9 May 29 12-13 13 15 8V2-9 m 30 12 12 17 8 to 8to June 13 11-12 11 16 11 11 1. Adjustment credit is available on a short-term basis to help depository somewhat above rates on market sources of funds ordinarily will be charged, but institutions meet temporary needs for funds that cannot be met through reason- in no case will the rate charged be less than the basic discount rate plus 50 basis able alternative sources. After May 19, 1986, the highest rate established for loans points. The flexible rate is reestablished on the first business day of each to depository institutions may be charged on adjustment credit loans of unusual two-week reserve maintenance period. At the discretion of the Federal Reserve size that result from a major operating problem at the borrower's facility. Bank, the time period for which the basic discount rate is applied may be Seasonal credit is available to help smaller depository institutions meet regular, shortened. seasonal needs for funds that cannot be met through special industry lenders and 4. For earlier data, see the following publications of the Board of Governors: that arise from a combination of expected patterns of movement in their deposits Banking and Monetary Statistics, 1914-1941, and 1941-1970-, Annual Statistical and loans. A temporary simplified seasonal program was established on Mar. 8, Digest, 1970-1979. 1985, and the interest rate was a fixed rate Vl percent above the rate on adjustment In 1980 and 1981, the Federal Reserve applied a surcharge to short-term credit. The program was reestablished on Feb. 18, 1986 and again on Jan. 28, adjustment credit borrowings by institutions with deposits of $500 million or more 1987; the rate may be either the same as that for adjustment credit or a fixed rate that had borrowed in successive weeks or in more than 4 weeks in a calendar Vl percent higher. quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7, 2. Extended credit is available to depository institutions, where similar assist- 1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was ance is not reasonably available from other sources, when exceptional circum- adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and stances or practices involve only a particular institution or when an institution is to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the experiencing difficulties adjusting to changing market conditions over a longer formula for applying the surcharge was changed from a calendar quarter to a period of time. moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. 3. For extended-credit loans outstanding more than 30 days, a flexible rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • June 1988 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act ddeeppoossiitt iinntteerrvvaall Percent of deposits Effective date Net transaction accounts3'4 333333 111111222222//////111111555555//////888888777777 111111222222 111111222222//////111111555555//////888888777777 Nonpersonal time deposits By original maturity 333333 111111000000//////666666//////888888333333 000000 111111000000//////666666//////888888333333 Eurocurrency liabilities 333333 111111111111//////111111333333//////888888000000 1. Reserve requirements in effect on Dec. 31, 1987. Required reserves must be other transaction accounts, the exemption applies only to such accounts that held in the form of deposits with Federal Reserve Banks or vault cash. Nonmem- would be subject to a 3 percent reserve requirement. bers may maintain reserve balances with a Federal Reserve Bank indirectly on a 3. Transaction accounts include all deposits on which the account holder is pass-through basis with certain approved institutions. For previous reserve permitted to make withdrawals by negotiable or transferable instruments, payrequirements, see earlier editions of the Annual Report and of the FEDERAL ment orders of withdrawal, and telephone and preauthorized transfers in excess of RESERVE BULLETIN. Under provisions of the Monetary Control Act, depository three per month for the purpose of making payments to third persons or others. institutions include commercial banks, mutual savings banks, savings and loan However, MMDAs and similar accounts subject to the rules that permit no more associations, credit unions, agencies and branches of foreign banks, and Edge corporations. than six preauthorized, automatic, or other transfers per month, of which no more than three can be checks, are not transaction accounts (such accounts are savings 2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97-320) requires that $2 million of reservable liabilities (transaction accounts, deposits subject to time deposit reserve requirements). nonpersonal time deposits, and Eurocurrency liabilities) of each depository 4. The Monetary Control Act of 1980 requires that the amount of transaction institution be subject to a zero percent reserve requirement. The Board is to adjust accounts against which the 3 percent reserve requirement applies be modified the amount of reservable liabilities subject to this zero percent reserve require- annually by 80 percent of the percentage increase in transaction accounts held by ment each year for the succeeding calendar year by 80 percent of the percentage all depository institutions, determined as of June 30 each year. Effective Dec. 15, increase in the total reservable liabilities of all depository institutions, measured 1987 for institutions reporting quarterly and Dec. 29, 1987 for institutions on an annual basis as of June 30. No corresponding adjustment is to be made in reporting weekly, the amount was increased from $36.7 million to $40.5 million. the event of a decrease. On Dec. 15, 1987, the exemption was raised from $2.9 5. In general, nonpersonal time deposits are time deposits, including savings million to $3.2 million. In determining the reserve requirements of depository deposits, that are not transaction accounts and in which a beneficial interest is institutions, the exemption shall apply in the following order: (1) net NOW held by a depositor that is not a natural person. Also included are certain accounts (NOW accounts less allowable deductions); (2) net other transaction transferable time deposits held by natural persons and certain obligations issued accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting to depository institution offices located outside the United States. For details, see with those with the highest reserve ratio. With respect to NOW accounts and section 204.2 of Regulation D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1987 1988 TTyyppee ooff ttrraannssaaccttiioonn 11998855 11998866 11998877 Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 22,214 22,602 18,983 499 4,528 1,095 33,,338888 115500 00 334466 ? Gross sales 4,118 2,502 6,050 0 0 300 0 0 49 538 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,500 1,000 9,029 0 3,657 0 0 0 600 1,600 Others within 1 year Gross purchases 1,349 190 3,658 0 443 300 667700 479 0 0 6 0 0 300 0 300 0 0 0 0 0 7 Maturity shift 19,763 18,673 21,502 2,723 1,500 816 2,247 1,400 950 1,939 8 Exchange -17,717 -20,179 -20,388 -1,787 -917 -1,178 -3,728 -1,742 -754 -2,868 9 Redemptions 0 0 70 0 0 70 0 0 0 1 to 5 years 10 Gross purchases 2,185 893 10,231 5 2,551 0 5500 22,,558899 00 00 11 Gross sales 0 0 452 0 0 0 0 0 0 800 1? Maturity shift -17,459 -17,058 -17,974 -2,122 -1,500 -761 -1,900 -1,400 -840 -952 13 Exchange 13,853 16,984 18,938 1,612 917 1,178 3,278 1,742 749 2,643 5 to 10 years 14 Gross purchases 458 236 2,441 0 619 0 0 559966 00 00 IS 100 0 0 0 0 0 0 0 0 175 16 Maturity shift -1,857 -1,620 -3,529 -601 0 -55 -347 0 -110 -987 17 Exchange 2,184 2,050 950 100 0 0 300 0 5 150 Over 10 years 18 Gross purchases 293 158 1,858 0 493 0 0 444455 00 00 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -447 0 0 0 0 0 0 0 0 0 21 Exchange 1,679 1,150 500 75 0 0 150 0 0 75 All maturities ?? Gross purchases 26,499 24,078 37,171 504 8,633 1,395 4,108 4,259 0 346 73 Gross sales 4,218 2,502 6,802 0 300 300 0 0 49 1,513 24 Redemptions 3,500 1,000 9,099 0 3,657 0 70 0 600 1,600 Matched transactions ?S 866,175 927,997 950,923 60,731 61,321 77,497 85,288 104,833 7788,,335588 9977,,889922 26 Gross purchases 865,968 927,247 950,935 62,594 61,347 73,779 85,494 105,917 78,513 99,139 Repurchase agreements2 77 Gross purchases 134,253 170,431 314,620 99,,001133 34,080 6655,,667755 1155,,885533 2233,,551122 1100,,559911 00 28 Gross sales 132,351 160,268 324,666 12,311 34,080 57,380 18,751 25,264 14,237 0 29 Net change in U.S. government securities 20,477 29,989 11,235 -931 4,702 5,673 1,346 3,591 -4,140 -1,520 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 00 00 00 00 00 00 00 11 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 162 398 276 0 0 56 1 13 131 21 Repurchase agreements2 33 Gross purchases 22,183 31,142 80,353 22,,336699 77,,117744 1188,,552233 66,,778866 99,,771188 44,,004422 00 34 20,877 30,522 81,351 3,298 7,174 15,607 7,425 10,679 5,357 0 35 Net change in federal agency obligations 1,144 222 -1,274 -929 0 2,860 -640 -975 -1,446 -21 36 Total net change in System Open Market 21,621 30,211 9,961 -1,861 4,702 8,533 706 2,617 --55,,558866 -1,541 1. Sales, redemptions, and negative figures reduce holdings of the System Open 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers Market Account; all other figures increase such holdings. Details may not add to acceptances in repurchase agreements, totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • June 1988 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1988 1988 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Jan. Feb. Mar. Consolidated condition statement ASSETS 1 Gold certificate account 11,063 11,063 11,063 11,062 11,063 11,068 11,063 11,063 2 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 3 511 510 512 513 489 478 517 480 Loans 4 To depository institutions 525 2,148 2,967 3,194 2,134 333 336 2,311 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 7,402 7,402 7,402 7,399 7,399 7,423 7,402 7,399 8 Held under repurchase agreements 0 0 0 0 0 0 0 0 U.S. Treasury securities Bought outright 9 Bills 105,306 103,343 105,440 105,339 104,920 107,196 106,651 107,256 10 Notes 81,923 81,923 81,923 81,923 81,923 82,973 81,923 81,923 11 Bonds 28,317 28,317 28,317 28,317 28,317 28,242 28,317 28,317 12 Total bought outright 215,546 213,583 215,680 215,579 215,160 218,411 216,891 217,4% 13 Held under repurchase agreements 0 0 0 0 0 0 0 0 14 Total U.S. Treasury securities 215,546 213,583 215,680 215,579 215,160 218,411 216,891 217,496 15 Total loans and securities 223,473 223,133 226,049 226,172 224,693 226,167 224,629 227,206 16 Items in process of collection 7,507 6,641 7,151 5,783 5,994 6,489 5,197 6,267 17 Bank premises 711 715 713 715 716 705 712 716 Other assets 1 1 8 9 D Al e l n o o t m he in r4 a ted in foreign currencies3 6 6 , , 6 9 3 9 5 2 6 7 , , 6 1 4 2 1 5 6 7 , , 6 3 4 2 8 9 6 7 , , 6 4 5 9 4 7 6 7 , , 6 6 2 5 1 0 6 8 , , 7 5 1 3 4 5 6 6, , 6 9 3 2 5 2 7 6 , , 6 6 7 5 0 2 20 Total assets 261,910 260,846 264,483 263,414 262,244 265,174 260,693 265,072 LIABILITIES 21 Federal Reserve notes 206,846 208,085 208,597 220088,,334455 220099,,111177 205,871 220066,,330000 220099,,771199 Deposits 22 To depository institutions 38,219 35,901 38,281 39,812 36,640 35,338 39,701 38,777 23 U.S. Treasury—General account 3,034 3,300 3,221 2,145 3,190 10,276 2,472 2,403 24 Foreign—Official accounts 252 267 265 225 207 355 343 534 25 Other 392 329 524 361 479 315 438 436 26 Total deposits 41,897 39,797 42,291 42,543 40,516 46,284 42,954 42,150 27 Deferred credit items 6,287 6,012 6,663 5,434 5,564 6,093 4,300 5,969 28 Other liabilities and accrued dividends 2,511 2,473 2,435 2,593 2,547 2,654 2,558 2,607 29 Total liabilities 257,541 256,367 259,986 258,915 257,744 260,902 256,112 260,445 CAPITAL ACCOUNTS 30 Capital paid in 2,075 2,083 2,085 2,086 2,093 2,062 2,075 2,095 31 Surplus 2,047 2,047 2,047 2,047 2,047 2,042 2,047 2,047 32 Other capital accounts 247 349 365 366 360 168 459 485 33 Total liabilities and capital accounts 261,910 260,846 264,483 263,414 262,244 265,174 260,693 265,072 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international account 222,477 224,689 227,000 225,159 225,449 210,410 220,250 226,340 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 254,346 254,740 255,133 255,360 255,333 253,303 254,289 255,201 36 LESS: Held by bank 47,500 46,655 46,536 47,015 46,216 47,432 47,989 45,482 37 Federal Reserve notes, net 206,846 208,085 208,597 220088,,334455 220099,,111177 220055,,887711 220066,,330000 220099,,771199 Collateral held against notes net: 38 Gold certificate account 11,063 11,063 11.063 11,062 11,063 11,068 11,063 11,063 39 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 190,765 192,004 192,516 192,265 193,036 189,785 190,219 193,638 42 Total collateral 206,846 208,085 208,597 208,345 209,117 205,871 206,300 209,719 1. Some of these data also appear in the Board's H.4.1 (503) release. For 4. Includes special investment account at the Federal Reserve Bank of Chicago address, see inside front cover. in Treasury bills maturing within 90 days. 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities 5. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes securities sold and scheduled market exchange rates of foreign-exchange commitments. to be bought back under matched sale-purchase transactions. 3. Valued monthly at market exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1988 1988 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Jan. 29 Feb. 29 Mar. 31 1 Loans—Total 525 2,148 2,967 3,194 2,134 333 336 2,311 2 Within 15 days 494 2,115 2,950 3,177 2,113 326 303 2,271 3 16 days to 90 days 31 33 17 17 21 7 33 40 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 U.S. Treasury securities—Total 215,546 213,583 215,680 215,579 215,160 218,411 216,891 217,496 10 Within 15 days1 11,261 8,324 11,300 8,295 10,595 4,402 5,411 7,362 11 16 days to 90 days 50,748 51,705 54,147 54,131 51,377 55,664 57,207 51,566 12 91 days to 1 year 66,280 66,297 62,976 65,896 65,931 70,303 67,016 71,273 13 Over 1 year to 5 years 47,562 47,562 47,562 47,562 47,562 47,410 47,562 47,600 14 Over 5 years to 10 years 14,196 14,196 14,196 14,196 14,196 15,208 14,196 14,196 15 Over 10 years 25,499 25,499 25,499 25,499 25,499 25,424 25,499 25,499 16 Federal agency obligations—Total 7,402 7,402 7,402 7,399 7,399 7,423 7,402 7,399 17 Within 15 days1 75 78 7 279 385 170 364 385 18 16 days to 90 days 710 928 949 674 592 886 710 592 1,855 1,634 1,634 1,634 1,634 1,538 1,609 1,634 20 Over 1 year to 5 years 3,246 3,246 3,406 3,406 3,381 3,323 3,203 3,381 21 Over 5 years to 10 years 1,327 1,327 1,217 1,217 1,217 1,317 1,327 1,217 189 189 189 189 190 189 189 190 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics • June 1988 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1987 1988 11998844 11998855 11998866 11998877 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 39.91 46.06 56.17 57.44 57.88 57.83 58.50 57.99 57.44 58.32 58.44 58.62 22 NNoonnbboorrrroowweedd rreesseerrvveess 36.72 44.74 55.34 56.66 57.23 56.89 57.55 57.36 56.66 57.23 58.04 56.87 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 39.33 45.24 55.64 57.14 57.36 57.29 58.00 57.76 57.14 57.61 58.25 58.35 44 RReeqquuiirreedd rreesseerrvveess 39.06 45.00 54.80 56.41 56.84 57.03 57.37 57.06 56.41 57.02 57.31' 57.70 55 MMoonneettaarryy bbaassee55 199.60 217.34 239.52 256.68 251.00 252.25 254.56 256.02 256.68 260.24 261.26 262.40 Not seasonally adjusted 6 Total reserves3 40.94 47.24 57.64 58.96 57.39 57.50 58.04 58.09 58.96 60.17 57.65 57.80 7 Nonborrowed reserves 37.75 45.92 56.81 58.19 56.74 56.56 57.09 57.47 58.19 59.09 57.25 56.05 8 Nonborrowed reserves plus extended credit4 40.35 46.42 57.11 58.67 56.88 56.96 57.54 57.86 58.67 59.46 57.46 57.53 9 Required reserves 40.08 46.18 56.27 57.94 56.36 56.70 56.91 57.17 57.94 58.88 56.51 56.88 10 Monetary base5 202.70 220.82 243.63 261.21 251.42 251.60 253.29 256.82 261.21 261.20 258.19 259.92 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS 11 Total reserves3 40.70 48.14 59.56 62.12 58.36 59.81 61.11 61.20 62.12 62.64 60.05 60.07 12 Nonborrowed reserves 37.51 46.82 58.73 61.35 57.71 58.87 60.16 60.58 61.35 61.56 59.65 58.32 13 Nonborrowed reserves plus extended credit 40.09 47.41 59.04 61.86 57.76 58.85 61.22 60.79 61.86 62.12 59.82 59.58 14 Required reserves 39.84 47.08 58.19 61.09 57.33 59.02 59.98 60.28 61.09 61.34 58.91 59.15 15 Monetary base5 204.18 223.53 247.71 266.16 254.36 255.69 258.08 261.67 266.16 265.79 262.60 263.97 1. Latest monthly and biweekly figures are available from the Board's H.3(502) terms and conditions established for the extended credit program to help statistical release. Historical data and estimates of the impact on required reserves depository institutions deal with sustained liquidity pressures. Because there is of changes in reserve requirements are available from the Monetary and Reserves not the same need to repay such borrowing promptly as there is with traditional Projections Section. Division of Monetary Affairs. Board of Governors of the short-term adjustment credit, the money market impact of extended credit is Federal Reserve System, Washington, D.C. 20551. similar to that of nonborrowed reserves. 2. Figures incorporate adjustments for discontinuities associated with the 5. The monetary base not adjusted for discontinuities consists of total reserves implementation of the Monetary Control Act and other regulatory changes to plus required clearing balances and adjustments to compensate for float at Federal reserve requirements. To adjust for discontinuities due to changes in reserve Reserve Banks and the currency component of the money stock plus, for instirequirements on reservable nondeposit liabilities, the sum of such required tutions not having required reserve balances, the excess of current vault cash over reserves is subtracted from the actual series. Similarly, in adjusting for disconti- the amount applied to satisfy current reserve requirements. Currency and vault nuities in the monetary base, required clearing balances and adjustments to cash figures are measured over the weekly computation period ending Monday. compensate for float also are subtracted from the actual series. The seasonally adjusted monetary base consists of seasonally adjusted total 3. Total reserves not adjusted for discontinuities consist of reserve balances reserves, which include excess reserves on a not seasonally adjusted basis, plus with Federal Reserve Banks, which exclude required clearing balances and the seasonally adjusted currency component of the money stock and the remainadjustments to compensate for float, plus vault cash held during the lagged ing items seasonally adjusted as a whole. computation period by institutions having required reserve balances at Federal 6. Reflects actual reserve requirements, including those on nondeposit liabili- Reserve Banks plus the amount of vault cash equal to required reserves during the ties, with no adjustments to eliminate the effects of discontinuities associated with maintenance period at institutions having no required reserve balances. implementation of the Monetary Control Act or other regulatory changes to 4. Extended credit consists of borrowing at the discount window under the reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1987 1988 Item'1 D 19 e 8 c 4 . D 19 e 8 c 5 . D 19 e 8 c 6 . D 19 e 8 c 7 . Dec. Jan. Feb.' Mar. Seasonally adjusted 1 551.9 620.1 725.4 750.8' 750.8' 758.9 759.6 763.2 ? 2,363.6 2,562.6 2,807.8 2,901.O' 2,901 .(y 2,925.0' 2,946.3 2,968.0 2,978.3 3,196.4 3,491.5 3,660.8r 3,660.8' 3,686.0' 3,717.5 3,740.1 4 3,519.4 3,825.9 4,135.0r 4,325.4' 4,325.4' 4,363.5' 4,398.4 n.a. 5 5,932.6 6,749.4 7,607.1 8,318.8' 8,318.8' 8,379.2' 8,457.6 n.a. Ml components 6 Currency 156.1 167.7 180.4 196.5 196.5 119988..44 119999..33 220000..99 7 Travelers checks 5.2 5.9 6.5 7.1 7.1 7.2 7.3 7.3 8 Demand deposits5 244.1 267.2 303.3 288.0 288.0 289.9 287.8 287.9 9 Other checkable deposits 146.4 179.2 235.2 259.3 259.3 263.4 265.1 267.0 Nontransactions components in In M2* 1,811.7 1,942.5 2,082.4 2,150.1' 2,150.1' 2,166.1' 2,186.6 2,204.9 11 In M3 only8 614.7 633.8 683.7 759.8' 759.8' 761.0' 771.3 772.0 Savings deposits9 t? Commercial Banks 122.6 124.8 155.5 117788..22 117788..22 117799..00 118811..00 118833..22 13 Thrift institutions 162.9 176.6 215.2 236.0 236.0 235.3 235.2 236.6 Small denomination time deposits10 14 Commercial Banks 386.3 383.3 364.6 384.6 384.6 388.0 339933..66 339977..44 15 Thrift institutions 497.0 496.2 488.6 528.5 528.5 536.6' 547.9 556.3 Money market mutual funds 16 General purpose and broker-dealer 167.5 176.5 208.0 221.r 221.1' 225.0' 223311..11 223355..00 17 Institution-only 62.7 64.5 84.4 89.6 89.6 94.4 98.7 97.4 Large denomination time deposits" 18 Commercial Banks1 270.2 284.9 288.9 323.5 332233..55 332200..22 332244..99 332266..55 19 Thrift institutions 146.8 151.6 150.3 161.2 161.2 162.6 164.8 165.0 Debt components 70 Federal debt 1,365.3 1,584.3 1,804.5 1,952.4 11,,995522..44 11,,996600..88 11,,997799..22 n.a. 21 Nonfederal debt 4,567.3 5,165.1 5,802.6 6,366.4' 6,366.4' 6,418.4' 6,478.4 n.a. Not seasonally adjusted ?? 564.5 633.5 740.6 765.9 765.9 764.8 745.1 752.3 73 2,373.2 2,573.9 2,821.5 2,914.6r 2,914.6' 2,937.3' 2,933.6 2,959.4 74 2,991.4 3,211.0 3,508.3 3,677.4' 3,677.4' 3,698.5' 3,706.0 3,733.2 75 3,532.7 3,841.4 4,153.0' 4,343.5' 4,343.5' 4,382.2' 4,394.1 n.a. 26 5,927.1 6,740.6 7,592.8 8,302.6' 8,302.6' s ^^ 8,421.8 n.a. Ml components 27 Currency 158.5 170.2 183.0 199.4 199.4 197.1 119977..22 119999..22 78 Travelers checks 4.9 5.5 6.0 6.5 6.5 6.6 6.8 6.9 79 Demand deposits 253.0 276.9 314.4 298.5 298.5 295.8 279.1 279.9 30 Other checkable deposits6 148.2 180.9 237.3 261.5 261.5 265.3 261.9 266.3 Nontransactiohs components 31 M27 ...„ 1,808.7 1,940.3 2,080.8 2,148.7' 2,148.7' 22,,117722..55'' 2,188.5 22,,220077..11 32 M3 only8 618.2 637.1 686.8 762.7' 762.7' 761.2' 772.4 773.8 Money market deposit accounts 33 Commercial Banks 267.4 332.8 379.6 358.2 358.2 358.9 335599..00 336600..77 34 Thrift institutions 149.4 180.8 192.9 167.0 167.0 165.2 163.6 164.0 Savings deposits9 35 Commercial Banks 121.5 123.7 115544..22 176.7 117766..77 117788..22 117799..55 118822..55 36 Thrift institutions 161.5 174.8 212.9 233.3 233.3 233.0 232.8 236.1 Small denomination time deposits10 37 Commercial Banks 386.9 384.0 365.3 385.2 385.2 389.4 394.0 339977..11 38 Thrift institutions 498.2 497.5 489.7 529.3 529.3 540.2 550.6 556.9 Money market mutual funds 39 General purpose and broker-dealer 167.5 176.5 208.0 221.1' 221.1' 225.0' 223311..11 223355..00 40 Institution-only 62.7 64.5 84.4 89.6 89.6 94.4 98.7 97.4 Large denomination time deposits" 41 Commercial Banks 270.9 285.4 289.1 323.6 332233..66 321.3 332255..11 332288..66 42 Thrift institutions 146.8 151.9 150.7 161.7 161.7 163.8 166.0 165.2 Debt components 43 Federal debt 1,364.7 1,583.7 11,,880044..00 1,951.9 11,,995511..99 11,,995599..44 11,,997722..33 n.a. 44 Nonfederal debt 4,562.4 5,156.9 5,788.8 6,350.8' 6,350.8' 6,401.5' 6,449.5 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • June 1988 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) Debt: Debt of domestic nonfinancial sectors consists of outstanding credit release. Historical data are available from the Banking Sections, Division of market debt of the U.S. government, state and local governments, and private Research and Statistics, Board of Governors of the Federal Reserve System, nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Washington, D.C. 20551. sumer credit (including bank loans), other bank loans, commercial paper, bankers 2. Composition of the money stock measures and debt is as follows: acceptances, and other debt instruments. The source of data on domestic Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt of depository institutions; (2) travelers checks of nonbank issuers; (3) demand data are based on monthly averages. deposits at all commercial banks other than those due to depository institutions, 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of the U.S. government, and foreign banks and official institutions less cash items in depository institutions. the process of collection and Federal Reserve float; and (4) other checkable 4. Outstanding amount of U.S. dollar-denominated travelers checks of nondeposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- bank issuers. Travelers checks issued by depository institutions are included in matic transfer service (ATS) accounts at depository institutions, credit union demand deposits. share draft accounts, and demand deposits at thrift institutions. 5. Demand deposits at commercial banks and foreign-related institutions other M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) than those due to depository institutions, the U.S. government, and foreign banks issued by all commercial banks and overnight Eurodollars issued to U.S. residents and official institutions less cash items in the process of collection and Federal by foreign branches of U.S. banks worldwide, MMDAs, savings and small- Reserve float. denomination time deposits (time deposits—including retail RPs—in amounts of 6. Consists of NOW and ATS balances at all depository institutions, credit less than $100,000), and balances in both taxable and tax-exempt general purpose union share draft balances, and demand deposits at thrift institutions. and broker-dealer money market mutual funds. Excludes individual retirement 7. Sum of overnight RPs and overnight Eurodollars, money market fund accounts (IRA) and Keogh balances at depository institutions and money market balances (general purpose and broker-dealer), MMDAs, and savings and small funds. Also excludes all balances held by U.S. commercial banks, money market time deposits. funds (general purpose and broker-dealer), foreign governments and commercial 8. Sum of large time deposits, term RPs, and term Eurodollars of U.S. banks, and the U.S. government. residents, money market fund balances (institution-only), less the estimated M3: M2 plus large-denomination time deposits and term RP liabilities (in amount of overnight RPs and Eurodollars held by institution-only money market amounts of $100,000 or more) issued by commercial banks and thrift institutions, funds. term Eurodollars held by U.S. residents at foreign branches of U.S. banks 9. Savings deposits exclude MMDAs. worldwide and at all banking offices in the United Kingdom and Canada, and 10. Small-denomination time deposits—including retail RPs—are those issued balances in both taxable and tax-exempt, institution-only money market mutual in amounts of less than $100,000. All individual retirement accounts (IRA) and funds. Excludes amounts held by depository institutions, the U.S. government, Keogh accounts at commercial banks and thrifts are subtracted from small time money market funds, and foreign banks and official institutions. Also subtracted deposits. is the estimated amount of overnight RPs and Eurodollars held by institution-only 11. Large-denomination time deposits are those issued in amounts of $100,000 money market mutual funds. or more, excluding those booked at international banking facilities. L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term 12. Large-denomination time deposits at commercial banks less those held by Treasury securities, commercial paper and bankers acceptances, net of money money market mutual funds, depository institutions, and foreign banks and market mutual fund holdings of these assets. official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 1.22 BANK DEBITS AND DEPOSIT TURNOVER1 Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1987 1988 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 1199885522 1199886622 1199887722 Aug. Sept. Oct. Nov. Dec. Jan. DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 156,091.6 188,345.8 217,115.9 221,729.0 219,182.9 234,398.3 219,386.1 203,290.6 213,270.8 2 Major New York City banks 70,585.8 91,397.3 104,496.3 109,062.5 105,149.4 110,833.6 103,693.6 92,640.1 98,733.8 3 Other banks 85,505.9 96,948.8 112,619.6 112,666.5 114,033.4 123,564.6 115,692.5 110,650.5 114,537.0 4 ATS-NOW accounts4 1,823.5 2,182.5 2,402.7 2,333.1 2,349.0 2,591.3 2,536.1 2,525.7 2,352.7 5 Savings deposits 384.9 403.5 526.5 518.8 524.0 582.4 570.8 556.0 534.9 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 500.3 556.5 612.1 623.3 625.3 654.9 619.0 590.4 602.5 7 Major New York City banks 2,196.9 2,498.2 2,670.6 2,718.2 2,715.1 2,744.7 2,620.2 2,608.1 2,600.3 8 Other banks 305.7 321.2 357.0 357.0 365.7 389.1 367.4 358.3 362.5 9 ATS-NOW accounts4 15.8 15.6 13.8 13.2 13.2 14.4 14.2 14.2 13.0 10 Savings deposits 3.2 3.0 3.1 3.0 3.0 3.3 3.3 3.2 3.0 DEBITS TO Not seasonally adjusted Demand deposits 11 All insured banks 156,052.3 188,506.4 217,124.8 214,145.9 216,728.0 233,999.8 202,230.1 222,338.9 210,029.1 12 Major New York City banks 70,559.2 91,500.0 104,518.6 103,822.8 104,234.0 111,398.9 96,035.9 102,548.7 40.3 13 Other banks 85,493.1 97,006.6 112,606.1 110,323.1 112,494.0 122,600.8 106,194.2 119,790.3 112,189.0 14 ATS-NOW accounts4 1,826.4 2,184.6 2,404.8 2,226.4 2,414.9 2,577.7 2,375.8 2,645.3 2,565.2 15 MMDA 1,223.9 1,609.4 1,954.2 1,752.7 1,846.6 2,247.8 1,959.8 2,276.4 2,305.6 16 Savings deposits 385.3 404.1 526.8 524.2 519.0 604.3 519.9 568.9 552.5 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 499.9 556.7 612.3 612.5 620.2 657.8 565.6 615.0 578.7 18 Major New York City banks 2,196.3 2,499.1 2,674.9 2,721.9 2,751.0 2,824.8 2,467.8 2,661.4 2,430.3 19 Other banks 305.6 321.2 356.9 354.2 361.1 387.6 333.3 370.9 347.7 20 ATS-NOW accounts4 15.8 15.6 13.8 12.8 13.7 14.6 13.3 14.6 13.9 21 MMDA6 4.0 4.5 5.3 4.8 5.1 6.3 5.5 6.4 6.5 22 Savings deposits 3.2 3.0 3.1 3.0 3.0 3.5 3.0 3.2 3.1 1. Historical tables containing revised data for earlier periods may be obtained of states and political subdivisions. from the Banking Section, Division of Monetary Affairs, Board of Governors of 4. Accounts authorized for negotiable orders of withdrawal (NOW) and acthe Federal Reserve System, Washington, D.C. 20551. counts authorized for automatic transfer to demand deposits (ATS). ATS data are These data also appear on the Board's G.6 (406) release. For address, see inside available beginning December 1978. front cover. 5. Excludes ATS and NOW accounts, MMDA and special club accounts, such 2. Annual averages of monthly figures. as Christmas and vacation clubs. 3. Represents accounts of individuals, partnerships, and corporations and 6. Money market deposit accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • June 1988 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1987 1988 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted 1 Total loans and securities2 2,152.0 2,166.0 2,176.7 2,181.3 2,199.0 2,214.7 2,227.6 2,232.1 2,230.6 2,242.0 2,257.6 2,273.1 2 U.S. government securities 318.1 321.3 321.3 322.9 328.5 331.3 331.7 331.1 333.2 334.1 334.0 338.9 J Other securities 194.4 195.5 195.9 194.3 193.7 193.7 194.2 196.2 196.0 194.0 195.7 197.4 4 Total loans and leases 1,639.6 1,649.3 1,659.6 1,664.1 1,676.8 1,689.8 1,701.7 1,704.8 1,701.4 1,713.9 1,727.9 1,736.8 5 Commercial and industrial ..... 549.1 551.9 554.4 553.6 554.0 559.0 562.8 563.1 565.5 568.5 569.9 568.1 6 Bankers acceptances held ... 4.8 4.8 4.6 4.5 5.3 5.4 5.5 4.6 44..33 44..55 44..55 44..88 7 Other commercial and industrial 544.3 547.1 549.8 549.1 548.7 553.6 557.3 558.5 561.2 564.0 565.4 563.2 8 U.S. addressees4 536.0 539.0 541.3 540.8 540.5 545.6 549.3 550.9 553.0 555.1 555566..77'' 555.0 9 Non-U. S. addressees 8.3 8.1 8.4 8.4 8.2 8.0 8.0 7.6 8.2 8.9 88..88 8.2 10 Real estate 524.8 532.6 542.6 549.6 556.8 561.7 569.4 576.2 582.3 586.9 592.4 597.9 11 Individual 317.8 319.1 318.9 319.7 321.5 322.8 324.1 325.0 325.9 327.8 330.2 334.2 12 Security 44.6 43.6 44.0 43.9 45.4 46.1 47.1 39.3 33.4' 3366..33'' 4411..33'' 3399..88 13 Nonbank financial institutions 35.6 35.8 34.5r 32.5' 31.5' 31.4' 31.7' 31.9' 31.9' 32.1' 32.7' 32.1 14 Agricultural 29.9 30.0 30.0 29.8 29.7 29.6 29.6 29.3 29.2 2299..44 2299..55'' 2299..55 15 State and political subdivisions 56.6 56.4 56.1 55.5 54.7 54.6 54.1 53.4 51.2 52.C 52.(K 51.8 16 Foreign banks 9.3 9.3 9.6 9.0 9.1 9.2 9.6 8.8 8.2 8.3 8.0 8.3 17 Foreign official institutions 6.8 6.1 5.8 5.7 5.7 5.7 5.8 5.7 5.6 5.6' 5.2 5.2 18 Lease financing receivables .... 23.3 23.7 23.9 23.9 24.0 24.1 24.3 24.5 24.8 25.0 25.0 24.9 19 All other loans 41.8 40.9 39.8' 40.7' 44.3' 45.5' 43.2' 47.6' 43.3' 42.2' 41.8' 45.0 Not seasonally adjusted 20 Total loans and securities2 2,153.1 2,163.4 2,173.7 2,172.8 2,188.8 2,211.6 2,222.4 2,231.3 2,247.0 2,254.7 2,262.3 2,273.4 21 U.S. government securities 318.0 320.0 318.4 322.1 328.3 331.3 329.3 331.0 333.1 335.6 339.1 340.7 22 Other securities 194.0 195.5 195.3 193.0 193.6 193.8 193.3 195.6 196.6 196.7 196.4 197.0 23 Total loans and leases2 1,641.1 1,647.9 1,660.0 1,657.7 1,666.9 1,686.6 1,699.8 1,704.7 1,717.3 1,722.4 1,726.8 1,735.6 24 Commercial and industrial ..... 552.8 554.4 555.9 551.3 549.5 555.7 558.7 562.0 569.6 568.1 569.2 573.2 25 Bankers acceptances held ... 4.8 4.8 4.7 4.6 5.3 5.5 5.4 4.6 4.4 44..33 44..55 44..88 26 Other commercial and industrial 548.0 549.6 551.2 546.7 544.2 550.2 553.3 557.4 565.2 563.8 564.7 568.4 27 U.S. addressees4 539.9 541.4 542.7 538.1 535.9 542.1 545.2 549.2 557.0 555555..77 556.4 560.4 28 Non-U.S. addressees 8.2 8.2 8.5 8.6 8.3 8.2 8.1 8.2 8.2 88..11 8.3 8.0 29 Real estate 523.9 532.0 542.4 549.7 556.8 562.4 570.0 576.8 583.2 587.3 591.7 597.0 30 Individual 315.0 316.5 316.9 318.4 321.5 324.3 325.7 326.7 330.2 331.2 329.6 331.1 31 Security 46.4 43.9 45.4 43.3 43.3 44.8 45.6 39.4 35.1' 3377..11'' 3399..77'' 3399..33 32 Nonbank financial institutions 35.5 35.6 34.6' 32.3' 31.4' 31.8' 31.7' 32.3' 33.2' 32.4' 31.6 31.1 33 Agricultural 29.1 29.7 30.3 30.5 30.6 30.7 30.4 29.6 29.0 2288..66'' 2288..55'' 2288..55 34 State and political subdivisions 57.1 56.4 55.7 54.7 54.1 53.8 53.2 52.3 51.2 53.8' 53.2' 5522..77 35 Foreign banks 8.9 9.0 9.5 9.0 8.9 9.5 9.8 8.8 8.6 8.5 8.2 88..11 36 Foreign official institutions 6.8 6.1 5.8 5.7 5.7 5.7 5.8 5.7 5.6 5.6' 5.2 5.2 37 Lease financing receivables .... 23.5 23.8 24.0 23.9 23.9 24.0 23.9 24.2 24.8 25.2 25.1 25.1 38 All other loans 42.2 40.5 39.5' 41.0' 43.9' 44.8' 46.8' 46.8' 44.7' 44.7' 44.2 1. These data also appear in the Board's G.7 (407) release. For address, see 3. Includes nonfinancial commercial paper held. inside front cover. 4. United States includes the 50 states and the District of Columbia. 2. Excludes loans to commercial banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1987 1988 SSoouurrccee Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Total nondeposit funds 1 Seasonally adjusted 161.3 170.6 167.2 160.4 166.7 177.3 176.2 173.7 177.1 117777..44 117744..66 117711..77 2 Not seasonally adjusted 160.8 170.7 164.1 156.7 166.8 177.7 176.3 176.0 178.0 177.8 177.2 172.5 Federal funds, RPs, and other borrowings from nonbanks 3 Seasonally adjusted 172.1 170.6 168.4 167.2 167.1 165.0 164.6 165.8 161.9 116699..22 117722..77 117766..22 4 Not seasonally adjusted 171.6 170.6 165.3 163.6 167.2 165.4 164.7 168.1 162.8 169.5 175.3 177.1 5 Net b in a s l t a i n tu c t e i s o n d s u , e n t o o t f s o e r a e s i o g n n a - l r l e y l a a te d d ju sted -10.8 .1 --11..22 --66..99 -.3' 1122..33 1111..66 77..99 1155..22 88..33rr 11..99 --44..55 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted -23.0 -15.5 -15.5 -22.2 -17.7 -11.8 -14.7 -17.1 -14.1 --1177..44 --2211..55 --2266..77 7 Gross due from balances 70.5 68.5 67.1 66.4 64.5 63.8 67.7 70.4 69.6 72.1 74.1 78.0 8 Gross due to balances 47.5 53.0 51.5 44.2 46.8 52.0 53.0 53.3 55.5 54.7 52.T 51.3 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted 12.2 15.5 14.3 15.4 17.4r 24.1 26.3 25.0 29.3 2255..77 2233..44 2222..11 10 Gross due from balances 73.4 76.0 77.4 77.4 77.7 77.3 79.7 83.2 79.7 85.2 87.3 88.6 11 Gross due to balances 85.6 91.5 91.8 92.8 95.0 101.4 106.0 108.2r 109.0 110.9 110.7 110.8 Security RP borrowings 1? Seasonally adjusted 99.2 99.9 101.9 ' 103.0 105.2 107.5 107.6 106.9 106.4 108.7 107.2 107.6 13 Not seasonally adjusted 98.7 100.0 98.8 99.4 105.3 107.9 107.7 109.3 107.2 109.0 109.8 108.4 U.S. Treasury demand balances 14 Seasonally adjusted 21.4 25.3 26.9 24.4 28.5 24.9 34.2 3355..77 2266..11 1188..66 2222..66 2244..99 15 Not seasonally adjusted 21.6 30.8 25.5 26.6 21.6 25.5 30.7 25.8 22.4 24.9 28.2 22.3 Time deposits, $100,000 or more8 16 Seasonally adjusted 358.9 365.7 372.1 372.5 372.3 373.0 380.5 387.0 389.2 338899..11 339944..44 339966..11 17 Not seasonally adjusted 358.5 366.3 371.4 370.0 371.8 373.2 380.4 387.0 389.3 390.2 394.7 398.3 1. Commercial banks are those in the 50 states and the District of Columbia business. This includes borrowings from Federal Reserve Banks and from with national or state charters plus agencies and branches of foreign banks. New foreignbanks, term federal funds, overdrawn due from bank balances, loan RPs, York investment companies majority owned by foreign banks, and Edge Act and participations in pooled loans. corporations owned by domestically chartered and foreign banks. 4. Averages of daily figures for member and nonmember banks. These data also appear in the Board's G. 10(411) release. For address, see 5. Averages of daily data. inside front cover. 6. Based on daily average data reported by 122 large banks. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at nonbanks and not seasonally adjusted net Eurodollars. commercial banks. Averages of daily data. 3.Other borrowings are borrowings on any instrument, such as a promissory 8. Averages of Wednesday figures. note or due bill, given for the purpose of borrowing money for the banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • June 1988 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1987 1988 AAccccoouunntt May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,325.8 2,321.0 2,331.6 2.348.8 2,374.8 2,402.4 2,389.9 2,430.5 2,415.2 2,420.7 2.443.2 2 Investment securities 494.5 492.7 497.1 501.1 501.7 503.8 508.0 514.4 515.2 513.9 518.3 3 U.S. government securities 307.4 304.6 309.4 313.7 313.8 316.0 317.3 321.4 322.9 322.2 324.7 4 Other 187.0 188.0 187.7 187.4 187.9 187.9 190.7 193.1 192.4 191.8 193.7 5 Trading account assets 21.4 20.2 20.4 19.5 19.5 19.6 20.3 16.9 18.3 22.0 20.3 6I To I t n al t e l r o b a a n n s k loans 1,8 1 1 6 0 1. . 8 0 1,8 1 0 5 8 0 . . 2 7 1,8 1 1 5 4 6 . . 1 5 1,8 1 2 6 8 0 . . 2 8 1,8 1 5 5 3 7 . . 6 4 1,8 1 7 7 8 2 . . 9 9 1,8 1 6 6 1 2 . . 6 0 1.8 1 9 7 9 2. . 1 2 1,8 1 8 6 1 0 . . 6 5 1,8 1 8 6 4 2 . . 8 5 1,9 1 0 6 4 0 . . 5 6 8 Loans excluding interbank 1.648.1 1,657.5 1.657.6 1,667.5 1,696.2 1,706.1 1,699.7 1,727.2 1,721.1 1,722.3 1,743.9 Y Commercial and industrial 555.1 554.6 548.1 548.2 560.7 559.7 561.1 576.4 565.3 569.1 576.4 10 Real estate 533.8 544.4 552.9 558.2 564.1 571.7 577.4 586.3 588.5 591.9 599.5 N Individual 316.9 317.3 319.4 322.1 325.3 326.7 326.9 332.4 330.8 329.8 332.5 12 Ail other 242.3 241.1 237.2 239.0 246.0 248.0 234.3 232.1 236.5 231.4 235.6 13 Total cash assets 231.9 214.2 208.4 210.7 223.8 223.5 215.2 232.5 209.6 202.3 207.5 14 Reserves with Federal Reserve Banks. 37.5 33.5 32.5 37.3 32.9 38.3 33.8 36.2 33.3 32.8 32.1 15 Cash in vault 25.1 24 2 24.5 24.7 24.5 25.0 24.0 28.5 25.8 25.1 24.8 16 Cash items in process of collection ... 81.6 74.7 69.0 65.9 81.6 79.0 76.1 79.9 7700..77 6666..88 7744..11 17 Demand balances at U.S. depository institutions 36.5 30.4 31.0 30.8 32.7 32.3 32.9 36.6 31.4 30.1 31.7 18 Other cash assets 51.2 51.4 51.5 52.1 52.1 48.9 48.4 51.4 48.5 47.6 45.0 19 Other assets 203.7 197.4 182.5 184.5 193.6 186.3 187.5 184.0 176.0 178.1 187.5 20 Total assets/total liabilities and capital.... 2,761.4 2,732.6 2,722.6 2,744.0 2,792.2 2,812.2 2,792.6 2,847.1 2,800.7 2,801.2 2,838.2 21 Deposits 1,942.5 1,927.4 1,928.8 1,930.4 1,972.4 1,971.2 1,974.1 2,009.1 1,968.1 1,973.9 2.003.9 22 Transaction deposits 598.1 579.6 575.3 574.1 612.4 598.1 592.0 623.3 576.0 567.3 587.6 23 Savings deposits 541.0 537.6 538.7 537.9 535.3 531.7 531.1 528.0 531.4 535.2 539.6 24 Time deposits 803.4 810.1 814.8 818.4 824.7 841.4 851.0 857.9 860.6 871.4 876.8 25 Borrowings 429.9 419.5 414.6 426.4 416.3 435.7 420.1 426.2 443.2 440.9 444.8 26 Other liabilities 200.0 202.0 202.5 209.6 224.7 225.5 218.9 231.5 208.7 205.3 209.5 27 Residual (assets less liabilities) 189.0 183.7 176.7 177.6 178.8 179.8 179.5 180.4 180.7 181.1 180.0 MEMO 28 U.S. government securities (including trading account) 321.0 317.0 323.8 326.8 327.7 329.9 331.7 332.4 336.9 333399..33 340.2 29 Other securities (including trading account) 194.8 195.8 193.8 193.8 193.5 193.5 196.6 198.9 196.7 196.6 198.4 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2.160.3 2,157.0 2,162.8 2,179.6 2,195.4 2,218.6 2,213.8 2,238.5 2.231.2 2,235.6 2,255.6 31 Investment securities 469.5 468.1 472.1 476.2 475.9 478.7 482.6 488.3 487.0 485.9 490.3 32 U.S. Treasury securities 296.9 295.1 299.4 303.5 302.9 305.7 306.4 311.0 311.3 310.7 313.2 33 Other 172.5 173.0 172.7 172.6 173.0 173.0 176.2 177.3 175.8 175.2 177.1 34 Trading account assets 21.4 20.2 20.4 19.5 19.5 19.6 20.3 16.9 18.3 22.0 20.3 35 Total loans 1,669.5 1,668.7 1,670.3 1,684.0 1,700.0 1,720.3 1,711.0 1,733.3 1,725.9 1,727.6 1,745.0 36 Interbank loans 128.7 120.9 122.0 128.6 125.0 133.3 130.5 135.3 131.0 133.1 131.8 37 Loans excluding interbank 1,540.8 1,547.8 1,548.3 1.555.4 1.575.0 1,587.0 1,580.4 1,598.0 1,594.9 1.594.5 1,613.2 38 Commercial and industrial 475.1 471.3 465.2 464.4 470.2 470.6 472.0 479.4 472.6 475.4 481.0 39 Real estate 525.0 535.5 543.5 548.4 554.0 561.9 567.3 575.0 577.1 579.8 587.4 40 Individual 316.5 317.0 319.1 321.8 325.0 326.4 326.6 332.1 330.5 329.5 332.1 41 All other 224.2 224.0 220.4 220.8 225.8 228.1 214.6 211.6 214.7 209.8 212.7 42 Total cash assets 215.4 197.7 191.6 192.7 204.8 207.8 199.3 214.9 191.9 184.4 191.7 43 Reserves with Federal Reserve Banks. 35.9 32.1 31.3 36.2 30.9 36.5 31.5 35.1 31.7 30.5 30.1 44 Cash in vault 25.0 24.1 24.4 24.6 24.4 24.9 24.0 28.4 25.7 25.1 24.7 45 Cash items in process of collection ... 81.2 74.2 68.5 65.4 81.0 78.4 75.7 79.5 7700..22 6666..33 7733..55 46 Demand balances at U.S. depository institutions 34.5 28.7 29.3 29.2 30.8 30.6 31.4 34.7 29.7 28.5 30.0 47 Other cash assets 38.8 38.6 38.0 37.2 37.7 37.3 36.7 37.3 34.6 34.0 33.3 48 Other assets 142.3 132.8 120.5 119.9 134.2 130.0 123.7 127.2 118.8 122.0 126.6 49 Total assets/liabilities and capital 2,517.9 2,487.5 2,474.9 2,492.2 2,534.5 2,556.4 2,536.8 2,580.7 2,542.0 2,541.9 2,573.9 50 Deposits 1,880.1 1,865.7 1,868.3 1,868.8 1,910.3 1,909.1 1,912.4 1,944.6 1,905.9 1,911.2 1,939.9 51 Transaction deposits 590.0 571.4 567.4 566.0 603.9 589.5 583.7 614.9 567.7 559.4 579.1 52 Savings deposits 539.0 535.6 536.6 535.7 533.2 529.5 528.8 525.7 529.1 532.8 537.2 53 Time deposits 751.1 758.7 764.3 767.1 773.3 790.1 799.9 804.1 809.1 819.0 823.6 54 Borrowings 336.3 327.0 318.9 333.0 324.7 345.7 323.2 331.9 344.7 342.9 343.4 55 Other liabilities 115.8 114.4 114.2 116.0 123.8 125.0 124.8 127.0 113.9 109.9 113.8 56 Residual (assets less liabilities) 185.7 180.5 173.5 174.4 175.6 176.6 176.3 177.2 177.5 177.9 176.8 1. Back data are available from the Banking and Monetary Statistics section, the last Wednesday of the month based on a weekly reporting sample of Board of Governors of the Federal Reserve System, Washington. D.C., 20551. foreign-related institutions and quarter-end condition reports. These data also appear in the Board's weekly H.8 (510) release. 2. Commercial banking institutions include insured domestically chartered Figures are partly estimated. They include all bank-premises subsidiaries and commercial banks, branches and agencies of foreign banks, Edge Act and other significant majority-owned domestic subsidiaries. Loan and securities data Agreement corporations, and New York State foreign investment corporations. for domestically chartered commercial banks are estimates for the last Wednes- 3. Insured domestically chartered commercial banks include all member banks day of the month based on a sample of weekly reporting banks and quarter-end and insured nonmember banks. condition report data. Data for other banking institutions are estimates made for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1988 AAccccoouunntt Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 1 Cash and balances due from depository institutions 107,796 93,205 121,433 97,516 104,813 92,066 108,164 98,632 101,556 2 Total loans, leases, and securities, net 1,102,779 1,102,076 1,103,668 1,094,241 1,103,004 1,101,424 1,101,833 1,097,126 1,100,538 3 U.S. Treasury and government agency 130,904 131,927 133,412 132,168 132,810 132,663 132,140 130,920 129,797 4 Trading account 15,963 17,333 18,301 17,188 18,052 17,195 17,361 16,329 15,539 S Investment account 114,941 114,594 115,112 114,980 114,758 115,467 114,779 114,591 114,258 6 Mortgage-backed securities 38,973 38,932 39,210 38,655 39,222 39,297 39,416 40,190 40,401 All other maturing in 7 One year or less 16,346 16,639 17,092 17,126 17,639 17,696 17,570 17,480 17,194 8 Over one through five years 48,048 48,106 47,959 48,202 48,046 48,503 47,796 46,930 46,647 9 Over five years 11,574 10,918 10,851 10,997 9,851 9,972 9,998 9,991 10,016 10 Other securities 73,483 72,955 72,289 72,544 72,519 72,149 72,037 72,078 72,732 11 Trading account 1,765 1,727 1,885 1,895 2,003 1,857 1,790 1,759 1,717 1? Investment account 71,718 71,228 70,404 70,649 70,516 70,292 70,247 70,319 71,014 13 States and political subdivisions, by maturity 50,758 50,458 49,872 49,888 49,554 49,504 49,450 49,406 49,399 14 One year or less 6,316 6,145 5,947 5,908 5,984 6,014 5,977 5,965 5,981 IS Over one year 44,441 44,313 43,926 43,980 43,570 43,490 43,473 43,441 43,418 16 Other bonds, corporate stocks, and securities 20,960 20,770 20,531 20,761 20,962 20,788 20,796 20,913 21,616 17 Other trading account assets 2,426 2,858 2,822 2,781 3,367 3,150 2,823 2,922 3,028 18 Federal funds sold3 75,143 77,017 72,896 68,171 71,232 71,552 70,146 68,735 68,683 19 To commercial banks 44,952 47,228 47,442 43,121 44,453 46,457 45,312 42,230 41,875 70 To nonbank brokers and dealers in securities 20,706 19,734 17,997 18,421 19,510 17,717 18,274 18,476 18,163 71 To others 9,484 10,055 7,457 6,629 7,269 7,378 6,560 8,028 8,645 7? Other loans and leases, gross 862,157 858,659 863,426 859,724 864,262 863,128 865,902 863,865 867,690 ?3 Other loans, gross 841,111 837,563 842,335 838,620 843,148 842,021 844,758 842,622 846,687 74 Commercial and industrial 289,349 289,111 291,045 290.022 292,613 291,405 292,183 291,054 293,578 7.S Bankers acceptances and commercial paper 2,174 2,143 2,063 2,029 2,246 2,383 2,405 2,353 2,440 76 All other 287,175 286,969 288,982 287,994 290,367 289,022 289,777 288,702 291,138 77 U.S. addressees 284,140 284,004 285,927 285,052 287,533 286,314 287,126 286,066 288,500 28 Non-U.S. addressees 3,035 2,965 3,055 2,942 2,834 2,708 2,651 2,636 2,638 79 Real estate loans 268,080 268,394 268,485 268,538 269,582 270,094 270,933 271,337 271,643 30 Revolving, home equity 17,489 17,561 17,656 17,669 17,740 17,802 17,876 17,949 18,068 31 All other 250,591 250,833 250,829 250,870 251,841 252,292 253,057 253,388 253,575 3? To individuals for personal expenditures 160,050 159,644 159,642 159,706 159,657 159,497 159,6% 159,881 160,399 33 To depository and financial institutions 49,877 48,730 49,567 48,764 49,606 48,653 49,385 48,746 48,177 34 Commercial banks in the United States 23,020 22,228 22,683 22,978 22,798 22,744 23,285 22,576 22,323 35 Banks in foreign countries 4,120 3,972 4,030 4,004 4,579 3,822 3,593 4,185 3,581 36 Nonbank depository and other financial institutions ... 22,738 22,530 22,854 21,782 22,230 22,087 22,507 21,984 22,274 37 For purchasing and carrying securities 13,510 12,851 13,685 12,853 12,805 13,823 13,641 13,440 14,216 38 To finance agricultural production 5,416 5,364 5,356 5,314 5,385 5,426 5,447 5,445 5,417 39 To states and political subdivisions 32,233 32,160 32,081 32,076 31,941 31,837 31,818 31,804 31,632 40 To foreign governments and official institutions 2,434 2,333 2,352 2,362 2,298 2,258 2,315 2,279 2,179 41 All other 20,162 18,974 20.123 18,984 19,261 19,027 19,339 18,636 19,444 4? Lease financing receivables 21,046 21,097 21,091 21,104 21,113 21,107 21,144 21,242 21,003 43 LESS: Unearned income 4,662 4,690 4,659 4,675 4,706 4,762 4,776 4,781 4,803 44 Loan and lease reserve 36,672 36,651 36,518 36,472 36,481 36,455 36,440 36,614 36,588 45 Other loans and leases, net 820,823 817,319 822,249 818,577 823,075 821,911 824,686 822,470 826,299 46 All other assets 125,511 126,517 126,800 122,588 125,534 128,106 128,800 126,254 125,120 47 Total assets 1,336,086 1,321,798 1,351,902 1,314,345 1,333,352 1,321,596 1,338,797 1,322,012 1,327,214 48 Demand deposits 234,203 220,783 245,280 214,894 230,239 215,428 230,735 214,738 223,226 49 Individuals, partnerships, and corporations 179,296 174,021 189,816 167,736 180,012 172,798 178,766 167,993 175,045 SO States and political subdivisions 7,194 6,279 6,521 6,743 6,447 5,716 6,445 6,378 5,882 SI U.S. government 5,380 2,764 2,417 3,250 1,895 1,662 3,988 2,889 3,069 52 Depository institutions in the United States 24,614 21,791 27,837 21,878 24,266 20,928 23,633 22,176 21,954 53 Banks in foreign countries 5,899 6,313 7,561 6,525 6,986 5,938 6,600 6,463 5,991 54 Foreign governments and official institutions 720 673 794 714 674 722 650 605 943 SS Certified and officers' checks 11,098 8,942 10,334 8,048 9,957 7,665 10,652 8,234 10,342 S6 Transaction balances other than demand deposits 71,209 70,228 70,284 69,248 72,107 71,637 71,532 70,745 70,977 57 Nontransaction balances 586,082 588,344 588,169 587,949 589,962 592,140 592,961 592,729 590,904 58 Individuals, partnerships, and corporations 546,053 548,248 547,766 547,278 549,567 551,625 552,525 552,380 550,775 59 States and political subdivisions 29,198 29,454 29,502 29,915 29.698 29,797 29,722 29,612 29,341 60 U.S. government 889 886 882 892 913 911 928 941 933 61 Depository institutions in the United States 9,180 8,989 9,262 9,143 9,003 9,037 9,026 9,059 9,099 67 Foreign governments, official institutions, and banks 761 767 756 721 780 770 759 736 756 63 Liabilities for borrowed money 274,065 275,516 278,478 275,250 275,166 277,147 278,288 276,351 273,862 64 Borrowings from Federal Reserve Banks 0 200 320 75 265 1,950 2,775 2,839 1,900 65 Treasury tax-and-loan notes 17,421 16.518 18,016 22,071 16,915 11,990 19,154 19,119 17,476 66 All other liabilities for borrowed money- 256,644 258,798 260,142 253,103 257,986 263,206 256,358 254,393 254,485 67 Other liabilities and subordinated notes and debentures 84,671 81,221 84,298 81,542 79,884 79,717 79,842 81,928 83,336 68 Total liabilities 1,250,229 1,236,094 1,266,509 1,228,882 1,247,357 1,236,069 1,253,358 1,236,492 1,242,305 69 Residual (total assets minus total liabilities)6 85,857 85,704 85.393 85,463 85,995 85,527 85,439 85,520 84,909 MEMO 70 Total loans and leases (gross) and investments adjusted ... 1,076,142 1,073,961 1,074,720 1,069,289 1,076,940 1,073,441 1,074,452 1,073,714 1,077,731 71 Total loans and leases (gross) adjusted 869,328 866,220 866,197 861,796 868,243 865,480 867,452 867,793 872,175 77 Time deposits in amounts of $100,000 or more 181,706 182,832 181,772 182,456 182,583 183,071 183,139 182,949 181,559 73 U.S. Treasury securities maturing in one year or less 16,968 17,484 18,053 17.658 17,812 18,117 18,109 17,601 17,487 74 Loans sold outright to affiliates—total 1,075 1,059 1,077 1,111 1,538 1,530 1,554 1,537 1,588 75 Commercial and industrial 852 837 854 888 1,049 1,040 1.056 1,044 1,100 76 Other 223 222 223 223 490 490 498 493 488 77 Nontransaction savings deposits (including MMDAs) 247,985 248,456 249,418 248,263 249,969 251,237 251,661 251,442 250,782 1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised repurchase; for information on these liabilities at banks with assets of $1 billion or somewhat, eliminating some former reporters with less than $2 billion of assets more on Dec. 31, 1977, see table 1.13. and adding some new reporters with assets greater than $3 billion. 6. This is not a measure of equity capital for use in capital-adequacy analysis or 2. Includes U.S. government-issued or guaranteed certificates of participation for other analytic uses. in pools of residential mortgages. 7. Exclusive of loans and federal funds transactions with domestic commercial 3. Includes securities purchased under agreements to resell. banks. 4. Includes allocated transfer risk reserve. 8. Loans sold are those sold outright to a bank's own foreign branches, 5. Includes federal funds purchased and securities sold under agreements to nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • June 1988 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1988 AAccccoouunntt Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 2r Mar. 9 Mar. 16 Mar. 23 Mar. 30 1 Cash balances due from depository institutions 27,911 21,133 27,592 23,556 24,393 20,270 28,639 23,732 24,166 2 Total loans, leases and securities, net2 223,393 224,257 223,274 218,521 219,235 217,875 216,161 219,362 222,439 Securities 3 U.S. Treasury and government agency3 0 0 0 0 0 0 0 0 0 4 Trading account3 0 0 0 0 0 0 0 0 0 5 Investment account 15,035 14,729 14,647 14,799 15,034 15,080 15,402 15,923 15,966 6 Mortgage-backed securities4 5,794 5,806 5,697 5,674 5,954 5,954 6,116 6,464 6,483 All other maturing in 7 One year or less 1,734 2,073 2,185 2,387 2,489 2,494 2,463 2,515 2,517 8 Over one through five years 4,793 4,829 4,801 4,765 4,613 4,606 4,744 4,787 4,826 9 Over five years 2,714 2,020 1,964 1,973 1,978 2,026 2,079 2,158 2,140 10 Other securities3 0 0 0 0 0 0 0 0 0 11 Trading account3 0 0 0 0 0 0 0 0 0 12 Investment account 18,083 17,925 17,505 17,643 17,493 17,357 17,271 17,219 17,306 13 States and political subdivisions, by maturity 13,901 13,878 13,668 13,776 13,617 13,585 13,593 13,552 13,597 14 One year or less 1,200 1,201 1,218 1,215 1,242 1,255 1,269 1,265 1,281 15 Over one year 12,701 12,678 12,449 12,560 12,375 12,329 12,324 12,286 12,317 16 Other bonds, corporate stocks, and securities 4,182 4,047 3,838 3,867 3,876 3,772 3,678 3,667 3,709 17 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold5 30,703 35,222 31,601 29,952 28,620 29,161 26,430 28,988 31,102 19 To commercial banks 11,868 15,421 16,431 14,681 12,323 13,650 11,284 13,622 13,964 20 To nonbank brokers and dealers in securities 13,162 12,397 10,462 11,020 11,397 10,489 10,553 10,288 11,033 21 To others 5,674 7,403 4,708 4,250 4,899 5,022 4,594 5,078 6,105 22 Other loans and leases, gross 175,167 172,015 175,126 171,738 173,798 172,048 172,825 172,952 173,779 23 Other loans, gross 170,346 167,144 170,246 166,843 168,888 167,133 167,895 168,016 168,829 24 Commercial and industrial 57,531 57,026 57,461 56,368 57,754 56,498 56,484 56,314 56,806 25 Bankers acceptances and commercial paper 434 433 407 441 460 478 543 482 505 26 All other 57,097 56,593 57,054 55,927 57,294 56,020 55,940 55,832 56,301 27 U.S. addressees 56,513 56,078 56,423 55,405 56,766 55,518 55,472 55,354 55,744 28 Non-U.S. addressees 584 515 630 523 529 502 468 478 558 29 Real estate loans 47,810 47,665 47,505 47,060 47,133 47,307 47,393 47,487 47,513 30 Revolving, home equity 2,831 2,841 2,847 2,860 2,868 2,877 2,891 2,900 2,913 31 All other 44,978 44,823 44,657 44,200 44,265 44,430 44,503 44,587 44,600 32 To individuals for personal expenditures 22,759 22,742 22,717 22,635 22,651 22,657 22,656 22,694 22,820 33 To depository and financial institutions 21,560 21,026 21,769 21,306 22,158 21,366 21,861 21,964 21,444 34 Commercial banks in the United States 12,493 12,115 12,485 12,587 12,648 12,741 13,290 12,819 12,839 35 Banks in foreign countries 2,378 2,295 2,299 2,384 2,910 2,100 1,938 2,582 2,124 36 Nonbank depository and other financial institutions 6,690 6,616 6,985 6,334 6,599 6,525 6,632 6,563 6,482 37 For purchasing and carrying securities 5,763 4,589 5,833 4,935 4,870 5,020 5,159 5,386 6,078 38 To finance agricultural production 306 288 276 287 298 298 292 293 291 39 To states and political subdivisions 7,397 7,392 7,382 7,372 7,348 7,344 7,394 7,388 7,318 40 To foreign governments and official institutions 649 586 613 604 703 634 717 675 592 41 All other 6,570 5,830 6,689 6,276 5,971 6,010 5,939 5,814 5,968 42 Lease financing receivables 4,820 4,871 4,880 4,895 4,910 4,915 4,930 4,936 4,950 43 LESS: Unearned income 1,534 1,545 1,528 1,535 1,572 1,614 1,627 1,632 1,644 44 Loan and lease reserve 14,061 14,088 14,078 14,075 14,138 14,157 14,141 14,088 14,070 45 Other loans and leases, net6 159,572 156,382 159,520 156,128 158,088 156,277 157,057 157,232 158,064 46 All other assets7 57,721 59,332 61,924 59,856 62,542 61,731 63,145 58,625 57,769 47 Total assets 309,025 304,722 312,790 301,934 306,169 299,875 307,945 301,719 304,374 Deposits 48 Demand deposits 59,249 55,607 63,141 53,968 57,636 52,316 60,028 54,327 56,881 49 Individuals, partnerships, and corporations 39,182 38,797 43,191 36,891 39,756 38,014 40,666 36,629 39,052 50 States and political subdivisions 1,285 1,288 1,168 1,185 926 921 1,180 1,302 1,177 51 U.S. government 1,177 553 362 655 230 282 675 547 603 52 Depository institutions in the United States 6,677 5,0% 6,489 5,993 5,897 4,834 6,216 6,464 5,428 53 Banks in foreign countries 4,730 5,145 6,151 5,208 5,810 4,667 5,194 5,336 4,802 54 Foreign governments and official institutions 572 542 648 567 526 593 524 465 753 55 Certified and officers' checks 5,625 4,186 5,131 3,467 4,490 3,005 5,572 3,583 5,067 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 9,493 9,353 9,327 9,234 9,459 9,465 9,450 9,353 9,418 57 Nontransaction balances 109,090 109,136 109,511 108,962 109,419 109,451 109,745 109,511 108,853 58 Individuals, partnerships, and corporations 100,276 100,434 100,674 100,100 100,608 100,590 100,836 100,655 100,094 59 States and political subdivisions 6,774 6,873 6,947 7,049 6.984 6,966 7,001 6,930 6,860 60 U.S. government 36 37 33 37 31 32 30 36 32 61 Depository institutions in the United States 1,685 1,485 1,559 1,503 1,503 1,576 1,600 1,617 1,576 62 Foreign governments, official institutions, and banks 319 306 298 272 291 287 278 272 289 63 Liabilities for borrowed money 72,716 75,997 73,859 74,684 74,771 76,026 73,657 71,360 71,957 64 Borrowings from Federal Reserve Banks 0 0 0 0 0 1,140 0 700 0 65 Treasury tax-and-loan notes 4,444 4,712 5,487 5,895 4,320 3,223 5,656 5,597 5,597 66 All other liabilities for borrowed money8 68,272 71,285 68,372 68,789 70,452 71,664 68,001 65,063 66,360 67 Other liabilities and subordinated note and debentures 34,005 30,309 32,686 30,884 30,452 28,077 30,489 32,594 32,942 68 Total liabilities 284,553 280,402 288,524 277,732 281,738 275,336 283,369 277,144 280,052 69 Residual (total assets minus total liabilities)9 24,472 24,320 24,266 24,202 24,432 24,540 24,576 24,575 24,322 MEMO 70 Total loans and leases (gross) and investments adjusted • 214,627 212,354 209,964 206,863 209,974 207,255 207,354 208,641 211,350 71 Total loans and leases (gross) adjusted10 181,509 179,700 177,811 174,421 177,446 174,818 174,681 175,498 178,078 72 Time deposits in amounts of $100,000 or more 39,160 39,322 39,368 39,004 39,077 38,985 39,591 39,102 38,474 73 U.S. Treasury securities maturing in one year or less 3,586 4,172 4,436 4,196 4,080 4,454 4,585 4,368 4,666 1. These data also appear in the Board's H.4.2 (504) release. For address, see 7. Includes trading account securities. inside front cover. 8. Includes federal funds purchased and securities sold under agreements to 2. Excludes trading account securities. repurchase. 3. Not available due to confidentiality. 9. Not a measure of equity capital for use in capital adequacy analysis or for 4. Includes U.S. government-issued or guaranteed certificates of participation other analytic uses. in pools of residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commer- Digitized for FRAS5E. IRnc ludes securities purchased under agreements to resell. cial banks. http://fraser.stlouis6f. eIdnc.olurdges/ allocated transfer risk reserve. Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets and Liabilities Millions of dollars, Wednesday figures 1988 AAccccoouunntt Feb. 3 Feb. 10 Feb. 17 Feb. 27 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 1 Cash and due from depository institutions ... 11,302 10,510 10,122 10,410 10,457 9,641 9,690 10,453 9,976 2 Total loans and securities 101,060 101,812 101,039 101,129 100,226 100,385 101,657 103,260 102,722 3 U.S. Treasury and government agency securities 7,774 7,811 8,001 7,706 7,722 88,,009966 8,130 88,,113344 77,,776622 4 Other securities 7,861 7,756 7,940 7,977 7,931 7,895 7,901 7,894 7,899 5 Federal funds sold 8,940 9,595 7,615 8,414 5,823 7,038 7,907 9,530 7,298 6 To commercial banks in the United States. 6,391 7,529 5,872 6,585 3,947 5,004 6,016 7,554 4,924 7 To others 2,549 2,066 1,742 1,829 1,876 2,034 1,890 1,976 2,374 8 Other loans, gross 76,484 76,649 77,483 77,032 78,750 77,356 77,720 77,702 79,764 9 Commercial and industrial 50,315 49,156 50,334 50,552 51,625 50,504 51,634 50,766 52,049 10 Bankers acceptances and commercial paper 1,391 1,468 1,600 1,636 1,667 1,634 1,571 1,625 1,649 11 All other 48,924 47,688 48,734 48,916 49,958 48,869 50,063 49,141 50,400 12 U.S. addressees 46,373 45,278 46,114 46,604 47,468 46,440 47,599 46,814 47,991 13 Non-U.S. addressees 2,551 2,410 2,620 2,312 2,491 2,429 2,464 2,327 2,409 14 To financial institutions 15,308 16,402 15,966 15,657 15,984 15,923 15,282 15,954 16,930 15 Commercial banks in the United States.. 11,088 12,136 11,712 11,634 11,767 11,800 11,343 11,600 12,390 16 Banks in foreign countries 1,016 1,005 1,064 992 1,052 1,031 994 1,313 1,398 17 Nonbank financial institutions 3,203 3,261 3,191 3,032 3,165 3,092 2,945 3,041 3,143 18 To foreign governments and official institutions 426 419 416 410 429 442222 460 446644 448844 19 For purchasing and carrying securities 1,851 1,872 1,994 1,607 1,887 1,787 1,624 1,680 1,546 20 All other 8,585 8,800 8,773 8,805 8,825 8,719 8,719 8,838 8,755 21 Other assets (claims on nonrelated parties) .. 30,670 31,120 30,463 30,510 30,538 30,845 30,791 30,742 30,902 22 Net due from related institutions 14,853 16,176 15,831 13,807 16,400 16,028 17,253 16,306 16,081 23 Total assets 157,884 159,618 157,455 155,856 157,622 156,899 159,391 160,762 159,682 24 Deposits or credit balances due to other than directly related institutions 42,638 42,432 42,112 41,577 41,693 41,663 42,315 42,693 42,712 25 Transaction accounts and credit balances3. 3,337 3,156 3,099 2,970 2,940 3,082 3,444 3,341 3,271 26 Individuals, partnerships, and corporations 1,932 1,914 2,072 1,875 1,821 1,933 2,068 2,045 2,105 27 Other 1,405 1,242 1,027 1,095 1,118 1,149 1,375 1,296 1,166 28 Nontransaction accounts 39,301 39,277 39,013 38,607 38,753 38,581 38,872 39,352 39,441 29 Individuals, partnerships, and corporations 32,300 32,411 32,045 31,766 31,979 31,758 32,055 32,200 32,274 30 Other 7,001 6,866 6,969 6,840 6,774 6,823 6,816 7,152 7,167 31 Borrowings from other than directly related institutions 61,583 62,816 61,292 58,649 61,619 6622,,222266 63,229 6611,,777788 61,304 32 Federal funds purchased 32,134 32,490 31,070 28,198 30,107 30,547 31,162 31,081 28,688 33 From commercial banks in the United States 19,712 19,969 18,322 14,834 15,621 15,673 16,815 16,897 15,698 34 From others 12,423 12,521 12,748 13,364 14,486 14,874 14,347 14,184 12,990 35 Other liabilities for borrowed money 29,449 30,326 30,221 30,451 31,512 31,679 32,067 30,697 32,616 36 To commercial banks in the United States 22,628 23,074 22,851 23,248 24,015 23,722 24,211 23,069 24,030 37 To others 6,820 7,252 7,370 7,203 7,497 7,956 7,855 7,628 8,587 38 Other liabilities to nonrelated parties 31,792 32,124 31,650 31,860 31,390 32,430 32,273 32,306 32,802 39 Net due to related institutions 21,870 22,245 22,401 23,770 22,920 20,579 21,573 23,983 22,864 40 Total liabilities 157,884 159,618 157,455 155,856 157,622 156,899 159,391 160,762 159,682 MEMO 41 Total loans (gross) and securities adjusted .. 83,581 82,146 83,455 82,910 84,512 83,581 84,298 84,106 85,408 42 Total loans (gross) adjusted6 67,945 66,578 67,514 67,227 68,859 67,590 68,267 68,078 69,748 1. Effective Jan. 1, 1986, the reporting panel includes 65 U.S. branches and 3. Includes credit balances, demand deposits, and other checkable deposits. agencies of foreign banks that include those branches and agencies with assets of 4. Includes savings deposits, money market deposit accounts, and time depos- $750 million or more on June 30, 1980, plus those branches and agencies that had its. reached the $750 million asset level on Dec. 31,1984. These data also appear in the 5. Includes securities sold under agreements to repurchase. Board's H.4.2 (504) release. For address, see inside front cover. 6. Exclusive of loans to and federal funds sold to commercial banks in the 2. Includes securities purchased under agreements to resell. United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • June 1988 1.31 GROSS DEMAND DEPOSITS Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances, not seasonally adjusted Commercial banks TTyyppee ooff hhoollddeerr 1986 1987 11998822 11998833 11998844 11998855 DDeecc.. DDeecc.. DDeecc.. DDeecc..33''44 Sept. Dec. Mar. June Sept. Dec. 1 AU holders—Individuals, partnerships, and corporations 291.8 293.5 302.7 321.0 333.6 363.6 335.9 340.2 339.0 344.9 2 Financial business 35.4 32.8 31.7 32.3 35.9 41.4 35.9 36.6 36.5 36.9 3 Nonfinancial business 150.5 161.1 166.3 178.5 185.9 202.0 183.0 187.2 188.2 191.7 4 Consumer 85.9 78.5 81.5 85.5 86.3 91.1 88.9 90.1 88.7 89.9 5 Foreign 3.0 3.3 3.6 3.5 3.3 3.3 2.9 3.2 3.2 3.4 6 17.0 17.8 19.7 21.2 22.2 25.8 25.2 23.1 22.4 23.0 Weekly reporting banks 1986 1987 11998822 11998833 11998844 11998855 DDeecc.. DDeecc.. DDeecc..22 DDeecc..3344 Sept. Dec. Mar. June Sept. Dec. 7 All holders—Individuals, partnerships, and 144.2 146.2 157.1 168.6 174.7 195.1 178.1 179.3 179.1 187.0 8 Financial business 26.7 24.2 25.3 25.9 28.9 32.5 28.7 29.3 29.3 29.5 9 Nonfinancial business 74.3 79.8 87.1 94.5 94.8 106.4 94.4 94.8 96.0 100.8 10 Consumer 31.9 29.7 30.5 33.2 35.0 37.5 36.8 37.5 37.2 39.4 11 Foreign 2.9 3.1 3.4 3.1 3.2 3.3 2.8 3.1 3.1 3.3 12 Other 8.4 9.3 10.9 12.0 12.8 15.4 15.5 14.6 13.5 14.0 1. Figures include cash items in process of collection. Estimates of gross thrift institutions. Historical data have not been revised. The estimated volume of deposits are based on reports supplied by a sample of commercial banks. Types such deposits for December 1984 is $5.0 billion at all insured commercial banks of depositors in each category are described in the June 1971 BULLETIN, p. 466. and $3.0 billion at weekly reporting banks. Figures may not add to totals because of rounding. 4. Historical data back to March 1985 have been revised to account for 2. Beginning in March 1984, these data reflect a change in the panel of weekly corrections of bank reporting errors. Historical data before March 1985 have not reporting banks, and are not comparable to earlier data. Estimates in billions of been revised, and may contain reporting errors. Data for all commercial banks for dollars for December 1983 based on the new weekly reporting panel are: financial March 1985 were revised as follows (in billions of dollars): all holders, -.3; business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other financial business, -.8; nonfinancial business, -.4; consumer, .9; foreign, .1; 9.5. other, -.1. Data for weekly reporting banks for March 1985 were revised as 3. Beginning March 1985, financial business deposits and, by implication, total follows (in billions of dollars): all holders, -.1; financial business, -.7; nonfinangross demand deposits have been redefined to exclude demand deposits due to cial business, -.5; consumer, 1.1; foreign, .1; other, -.2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1987 1988 11998833 11998844 11998855 11998866 11998877 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. Sept. Oct. Nov.1 Dec. Jan.2 Feb. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 187,658 237,586 298,779 329,991 357,129 356,993 356,577 351,844 357,129 380,475 389,027 FFiinnaanncciiaall ccoommppaanniieess'' DDeeaalleerr--ppllaacceedd ppaappeerr 22 TToottaall 44,455 56,485 78,443 101,072 101,958 114,435 109,020' 105,196' 101,958 116,730 121,376' 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 2,441 2,035 1,602 2,265 1,428 2,600 2,688 1,893 1,428 1,694 1,724 DDiirreeccttllyy ppllaacceedd ppaappeerrss 44 TToottaall 97,042 110,543 135,320 151,820 173,939 165,319 170,403 169,779 173,939 175,467 174,595 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 35,566 42,105 44,778 40,860 43,173 46,790 46,249 45,353 43,173 45,425 43,987 66 NNoonnffiinnaanncciiaall ccoommppaanniieess 46,161 70,558 85,016 77,099 81,232 77,239 77,154 76,869 81,232 88,278 93,056 Bankers dollar acceptances (not seasonally adjusted)7 7 Total 78,309 78,364 68,413 64,974 70,565 68,771 71,891 71,068 70,565 62,957 62,419 Holder 8 Accepting banks 9,355 9,811 11,197 13,423 10,943 10,521 10,856 10,701 10,943 8,602 9,629 9 Own bills 8,125 8,621 9,471 11,707 9,464 9,400 9,742 9,714 9,464 7,759 8,561 10 Bills bought 1,230 1,191 1,726 1,716 1,479 1,121 1,114 987 1,479 843 1,067 Federal Reserve Banks 11 Own account 418 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 729 671 937 1,317 965 1,467 1,400 1,134 965 831 833 13 Others 67,807 67,881 56,279 50,234 58,658 56,784 59,635 59,234 58,658 53,524 51,958 Basis 14 Imports into United States 15,649 17,845 15,147 14,670 16,483 17,198 17,814 16,942 16,483 14,468 14,354 15 Exports from United States 16,880 16,305 13,204 12,960 15,227 15,046 15,949 15,435 15,227 14,054 13,891 16 All other 45,781 44,214 40,062 37,344 38,855 36,526 38,128' 38,691 38,855 34,436 34,173 1. A change in the reporting panel in November resulted in a slight understate- 5. As reported by financial companies that place their paper directly with ment of outstanding volume. investors. 2. Data reflect a break in series resulting from additions to the reporting 6. Includes public utilities and firms engaged primarily in such activities as panel. communications, construction, manufacturing, mining, wholesale and retail trade, 3. Institutions engaged primarily in activities such as, but not limited to, transportation, and services. commercial savings, and mortgage banking; sales, personal, and mortgage fi- 7. Beginning January 1988, the number of respondents in the bankers accepnancing; factoring, finance leasing, and other business lending; insurance under- tance survey were reduced from 155 to 111 institutions—those with $100 million writing; and other investment activities. or more in total acceptances. The new reporting group accounts for over 90 percent of total acceptances activity. 4. Includes all financial company paper sold by dealers in the open market. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Rate Effective Date Month Av r e a r te a ge 10.50 1987—Apr. 1 7.75 1985—Jan. 10.61 1986—Sept. 10.00 May 1 8.00 Feb. 10.50 Oct. 9.50 15 8.25 Mar. 10.50 Nov. Sept. 4 8.75 Apr. 10.50 Dec. 9.00 Oct. 7 9.25 May 10.31 8.50 22 9.00 June 9.78 1987—Jan. 8.00 Nov. 5 8.75 July 9.50 Feb. 7.50 Aug. 9.50 Mar. 1988—Feb. 2 8.50 Sept. 9.50 Apr. Oct. 9.50 May Nov. 9.50 June Dec. 9.50 July Aug. 1986—Jan. 9.50 Sept. Feb. 9.50 Oct.. Mar. 9.10 Nov. Apr. 8.83 Dec. May 8.50 June 8.50 1988—Jan. July 8.16 Feb. Aug. 7.90 Mar. NOTE. These data also appear in the Board's H.15 (519) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • June 1988 1.35 INTEREST RATES Money and Capital Markets Averages, percent per year; weekly and monthly figures are averages of business day data unless otherwise noted. 1987 1988 1988, week ending IInnssttrruummeenntt 11998855 11998866 11998877 Dec. Jan. Feb. Mar. Feb. 26 Mar. 4 Mar. 11 Mar. 18 Mar. 25 MONEY MARKET RATES 1 Federal funds1'2 8.10 6.80 6.66 6.77 6.83 6.58 6.58 6.64 6.60 6.51 6.61 6.51 2 Discount window borrowing1, • 7.69 6.32 5.66 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Commercial paper4,5 3 1-month 7.93 6.61 6.74 7.76 6.76 6.55 6.57 6.53 6.54 6.55 6.56 6.58 4 3-month 7.95 6.49 6.82 7.61 6.87 6.58 6.62 6.58 6.56 6.59 6.61 6.64 5 6-month 8.00 6.39 6.85 7.49 6.92 6.58 6.64 6.60 6.57 6.60 6.63 6.68 Finance paper, directly placed • 6 1-month 77..9900 66..5577 66..6611 77..2233 66..6655 66..4455 6.44 6.43 6.35 6.45 6.46 6.45 7 3-month 7.77 6.38 6.54 6.97 6.62 6.39 6.38 6.38 6.30 6.38 6.40 6.37 8 6-month > 7.74 6.31 6.37 6.64 6.53 6.27 6.23 6.24 6.16 6.19 6.25 6.26 Bankers acceptances ,6 9 3-month 77..9911 6.38 6.75 7.48 6.77 6.49 6.51 6.50 6.45 6.50 6.50 6.53 10 6-month 7.95 6.28 6.78 7.41 6.83 6.49 6.55 6.50 6.45 6.53 6.54 6.60 Certificates of deposit, secondary market 11 1-month 77..9966 6.61 6.75 7.86 6.78 6.55 6.56 6.55 6.54 6.55 6.55 6.57 12. 3-month 8.04 6.51 6.87 7.66 6.92 6.60 6.63 6.61 6.58 6.62 6.61 6.64 13 6-month 8.24 6.50 7.01 7.67 7.10 6.69 6.78 6.73 6.68 6.75 6.76 6.84 14 Eurodollar deposits^ 3-month8 8.28 6.71 7.06 7.86 7.11 6.73 6.74 6.79 6.71 6.74 6.73 6.75 U.S. Treasury bills5 Secondary market9 15 3-month 77..4477 55..9977 55..7788 55..7777 55..8811 5.66 5.70 5.63 5.63 5.73 5.64 5.77 16 6-month 7.65 6.02 6.03 6.36 6.25 5.93 5.91 5.81 5.86 5.88 5.79 5.98 17 1-year „ 7.81 6.07 6.33 6.69 6.52 6.21 6.28 6.20 6.20 6.28 6.23 6.35 Auction average 18 3-month 77..4477 55..9988 55..8822 55..8800 55..9900 5.69 5.69 5.64 5.62 5.74 5.65 5.76 19 6-month 7.64 6.03 6.05 6.36 6.31 5.96 5.91 5.83 5.86 5.93 5.78 5.96 2200 7.80 6.18 6.33 6.74 6.67 6.18 66..3300 66..3300 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities 21 1-year 8.42 6.45 6.77 7.17 6.99 6.64 6.71 6.63 6.63 6.72 6.63 6.77 n 2-year 9.27 6.86 7.42 7.86 7.63 7.18 7.27 7.17 7.12 7.23 7.21 7.38 23 3-year 9.64 7.06 7.68 8.13 7.87 7.38 7.50 7.35 7.33 7.45 7.44 7.60 7.4 5-year 10.12 7.30 7.94 8.45 8.18 7.71 7.83 7.70 7.63 7.78 7.78 7.95 25 7-year 10.50 7.54 8.23 8.82 8.48 8.02 8.19 8.00 7.96 8.11 8.15 8.31 26 10-year 10.62 7.67 8.39 8.99 8.67 8.21 8.37 8.20 8.17 8.32 8.33 8.48 •>7 10.97 7.85 28 30-year 10.79 7.78 8.59 9.12 8.83 8.43 8.63 8.43 8.41 8.57 8.60 8.74 Composite 29 Over 10 years (long-term) 10.75 8.14 8.64 9.12 8.82 8.41 8.61 8.41 8.39 8.55 8.57 8.72 State and local notes and bonds Moody's series14 30 Aaa 88..6600 6.95 7.14 7.45 7.29 7.05 7.20 7.00 7.00 7.10 7.15 7.30 31 Baa 9.58 7.76 8.17 8.42 8.12 7.62 7.80 7.65 7.65 7.75 7.70 7.90 32 Bond Buyer series 9.11 7.34 7.65 7.96 7.69 7.49 7.74 7.52 7.47 7.67 7.75 7.89 Corporate bonds Seasoned issues16 33 All industries 1122..0055 9.71 9.91 10.59 10.37 9.89 9.86 9.83 9.75 9.80 9.83 9.92 34 Aaa 11.37 9.02 9.38 10.11 9.88 9.40 9.39 9.33 9.27 9.34 9.36 9.44 35 Aa 11.82 9.47 9.68 10.33 10.09 9.60 9.59 9.54 9.47 9.54 9.56 9.66 36 A 12.28 9.95 9.99 10.62 10.43 9.94 9.89 9.88 9.80 9.83 9.86 9.94 37 Baa 12.72 10.39 10.58 11.29 11.07 10.62 10.57 10.56 10.48 10.50 10.55 10.64 38 A-rated, recently-offered utility bonds17 1122..0066 99..6611 99..9955 1100..4422 1100..0055 9.75 9.91 9.75 9.78 9.83 9.98 10.01 MEMO: Dividend/price ratio18 39 Preferred stocks 1100..4499 88..7766 88..3377 99..0088 99..0044 9.02 9.07 9.10 9.08 9.07 9.07 9.05 40 Common stocks 4.25 3.48 3.08 3.71 3.66 3.56 3.48 3.48 3.45 3.43 3.45 3.45 1. Weekly and monthly figures are averages of all calendar days, where the places. Thus, average issuing rates in bill auctions will be reported using two rate for a weekend or holiday is taken to be the rate prevailing on the preceding rather than three decimal places. business day. The daily rate is the average of the rates on a given day weighted by 11. Yields are based on closing bid prices quoted by at least five dealers. the volume of transactions at these rates. 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 2. Weekly figures are averages for statement week ending Wednesday. are read from a yield curve at fixed maturities. Based on only recently issued, 3. Rate for the Federal Reserve Bank of New York. actively traded securities. 4. Unweighted average of offering rates quoted by at least five dealers (in the 13. Averages (to maturity or call) for all outstanding bonds neither due nor case of commercial paper), or finance companies (in the case of finance paper). callable in less than 10 years, including one very low yielding "flower" bond. Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. General obligations based on Thursday figures; Moody's Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 15. General obligations only, with 20 years to maturity, issued by 20 state and 150-179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 5. Yields are quoted on a bank-discount basis, rather than in an investment 16. Daily figures from Moody's Investors Service. Based on yields to maturity yield basis (which would give a higher figure). on selected long-term bonds. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Compilation of the Federal Reserve. This series is an estimate of the yield (which may be, but need not be, the average of the rates quoted by the dealers). on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 7. Unweighted average of offered rates quoted by at least five dealers early in call protection. Weekly data are based on Friday quotations. the day. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 8. Calendar week average. For indication purposes only. sample often issues: four public utilities, four industrials, one financial, and one 9. Unweighted average of closing bid rates quoted by at least five dealers. transportation. Common stock ratios on the 500 stocks in the price index. 10. Rates are recorded in the week in which bills are issued. Beginning with the NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the For address, see inside front cover. percentage yield (on a bank discount basis) that they would accept to two decimal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.36 STOCK MARKET Selected Statistics 1987 1988 IInnddiiccaattoorr 11998855 11998866 11998877 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 108.09 136.00 161.70 174.28 184.18 178.39 157.13 137.21 134.88 140.55 145.13 149.88 2 Industrial 123.79 155.85 195.31 214.12 226.49 219.52 189.86 163.42 162.19 168.47 173.44 181.57 3 Transportation 104.11 119.87 140.39 157.49 164.02 158.58 140.95 117.57 115.85 121.20 126.09 135.15 4 Utility 56.75 71.36 74.29 74.18 78.20 76.13 73.27 69.86 67.39 70.01 72.89 71.16 5 Finance 114.21 147.19 146.48 152.27 160.94 154.08 137.35 118.30 111.47 119.40 124.36 125.27 6 Standard & Poor's Corporation (1941-43 = 10)' 186.84 236.34 286.83 310.09 329.36 318.66 280.16 245.01 240.96 250.48 258.13 265.74 7 American Stock Exchange2 (Aug. 31, 1973 = 50) 229.10 264.38 316.61 348.68 361.52 353.72 306.34 249.42 248.52 267.29 276.54 295.78 Volume of trading (thousands of shares) 8 New York Stock Exchange 109,191 141,385 188,642 180,356 193,477 177,319 277,026 179,481 178,517 174,755 184,688 176,189 9 American Stock Exchange 8,355 11,846 13,832 12,857 13,604 12,381 18,173 11,268 13,422 9,853 9,961 12,442 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers 28,390 36,840 31,990 40,250 41,640 44,170 38,250 34,180 31,990 31,320 31,990 32,660 Free credit balances at brokers4 11 Margin-account 2,715 4,880 4,750 4,095 4,240 4,270 8,415 6,700 4,750 4,675 4,555 4,615 12 Cash-account 12,840 19,000 15,640 15,930 16,195 15,895 18,455 15,360 15,640 15,270 14,695 14,355 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance "margin securities" (as defined in the regulations) when such credit is collateracompanies. With this change the index includes 400 industrial stocks (formerly lized by securities. Margin requirements on securities other than options are the 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 difference between the market value (100 percent) and the maximum loan value of financial. collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; effectively cutting previous readings in half. and Regulation X, effective Nov. 1, 1971. 3. Beginning July 1983, under the revised Regulation T, margin credit at On Jan. 1, 1977, the Board of Governors for the first time established in broker-dealers includes credit extended against stocks, convertible bonds, stocks Regulation T the initial margin required for writing options on securities, setting acquired through exercise of subscription rights, corporate bonds, and govern- it at 30 percent of the current market-value of the stock underlying the option. On ment securities. Separate reporting of data for margin stocks, convertible bonds, Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the and subscription issues was discontinued in April 1984. same as the option maintenance margin required by the appropriate exchange or 4. Free credit balances are in accounts with no unfulfilled commitments to the self-regulatory organization; such maintenance margin rules must be approved by brokers and are subject to withdrawal by customers on demand. the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC 5. New series beginning June 1984. approved new maintenance margin rules, permitting margins to be the price of the 6. These regulations, adopted by the Board of Governors pursuant to the option plus 15 percent of the market value of the stock underlying the option. Securities Exchange Act of 1934, limit the amount of credit to purchase and carry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic NonfinancialS tatistics • June 1988 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1987 1988 AAccccoouunntt 11998855 11998866 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Savings and loan associations 1 Assets 948,781 963,316 939,721 944,229 952,671 949,069 949,223 955,105 956,517 973,816 978,319 977,978 981,285 2 Mortgage-backed securities 97,303 123,257 129,274 134,746 141,023 142,241 140,897 144,146 146,209 150,275 152,932 154,383 153,131 3 Cash and investment securities' 126,712 142,700 138,746 136,370 138,303 138,125 138,520 137,207 131,729 139,648 138,234 135,710 136,883 4 Other 103,768 110,445 101,031 102,566 103,250 103,861 103,915 105,120 104,445 105,580 106,143 106,208 106,419 5 Liabilities and net worth 948,781 963,316 939,721 944,229 952,671 949,069 949,223 955,105 956,517 973,816 978,319 977,978 981,285 6 Savings capital 750,071 741,081 722,548 716,798 718,633 715,662 716,385 717,257 721,407 727,333 731,061 737,347 742,686 7 Borrowed money 138,798 159,742 158,192 165,883 171,279 175,394 174,358 178,643 180,382 190,644 191,020 191,037 188,218 8 FHLBB 73,888 80,194 76,469 77,857 78,583 79,188 78,888 79,546 80,848 83,303 84,266 87,697 86,629 9 Other 64,910 79,548 81,723 88,026 92,696 96,206 95,470 99,097 99,534 107,341 106,754 103,340 101,589 10 Other 19,045 20,071 18,958 20,869 22,628 19,584 20,684 21,956 19,174 21,036 21,287 16,760 18,185 11 Net worth2 41,064 42,423 40,023 40,678 40,127 38,428 37,796 37,249 35,554 34,803 34,951 32,833 32,172 FSLIC-insured federal savings banks 12 Assets 131,868 210,562 241,418 246,277 253,006 264,105 268,781 272,316 272,837 276,556 279,223 284,296 284,329 13 Mortgages 72,355 113,638 138,882 140,854 144,581 150,421 152,881 154,054 154,655 156,459 158,885 161,909 161,728 14 Mortgage-backed securities 15,676 29,766 36,088 37,500 39,371 40,969 42,714 43,532 44,421 45,132 45,251 45,877 46,208 15 Other 11,723 19,034 16,605 17,034 17,200 17,923 17,523 17,793 17,572 17,410 17,353 17,303 17,736 16 Liabilities and net worth 131,868 210,562 241,418 246,277 253,006 264,105 268,781 272,316 272,837 276,556 279,223 284,296 284,329 17 Savings capital 103,462 157,872 178,672 180,637 182,802 189.998 193,890 194,853 195,213 197,298 199,114 203,231 204,390 18 Borrowed money 19,323 37,329 43,919 46,125 49,896 53,255 53,652 55,660 56,549 57,551 58,277 60,695 59,187 19 FHLBB 10,510 19,897 21,104 21,718 22,788 24,486 24,981 25,546 26,287 27,350 27,947 29,617 28,280 70 Other 8,813 17,432 22,815 24,407 27,108 28,769 28,671 30,114 30,262 30,201 30,330 31,078 30,907 21 Other 2,732 4,263 5,264 5,547 6,044 5,987 6,144 6,455 5,632 6,304 6,363 5,290 5,784 22 Net worth 6,351 11,098 13,564 13,978 14,272 14,871 15,100 15,172 15,445 15,417 15,483 15,098 14,992 Savings banks 23 Assets 216,776 236,866 240,739 243,454 245,906 244,760 246,833 249,888 251,472 255,989 260,600 259,643' 258,628 Loans 24 Mortgage 110,448 118,323 121,178 122,769 124,936 128,217 129,624 130,721 133,298 135,317 137,044 138,494r 137,858 25 Other 30,876 35,167 38,012 37,136 37,313 35,200 35,591 36,793 36,134 36,471 37,189 33,871' 35,095 Securities 26 U.S. government 13,111 14,209 13,631 13,743 13,650 13,549 13,498 13,720 13,122 13,817 15,694 13,510' 12,776 27 Mortgage-backed securities 19,481 25,836 27,463 28,700 28,739 27,785 28,252 28,913 29,655 30,202 31,144 32,772' 32,241 28 State and local government 2,323 2,185 2,041 2,063 2,053 2,059 2,050 2,038 2,023 2,034 2,046 2,003' 1,994 29 Corporate and other 21,199 20,459 19,598 19,768 19,956 18,803 18,821 18,573 18,431 18,062 17,583 18,772' 18,780 30 Cash 6,225 6,894 5,703 5,308 5,176 4,939 4,806 4,823 4,484 5,529 5,063 5,864' 4,841 31 Other assets 13,113 13,793 13,713 13,967 14,083 14,208 14,191 14,307 14,325 14,557 14,837 14,357' 15,043 32 Liabilities 216,776 236,866 240,739 243,454 245,906 244,760 246,833 249,888 251,472 255,989 260,600 259,643' 258,628 33 Deposits 185,972 192,194 193,693 193,347 194,742 193,274 194,549 195,895 196,824 199,336 202,030 201,497' 199,545 34 Regular 181,921 186,345 188,432 187,791 189,048 187,669 188,783 190,335 191,376 193,777 196,724 196,037' 194,322 35 Ordinary savings 33,018 37,717 40,558 41.326 41,967 42,178 41,928 41,767 41,773 42,045 42,493 41,959' 41,047 36 Time 103,311 100,809 100,896 100,308 100,607 100,604 102,603 105,133 107,063 109,486 112,231 112,429' 112,781 37 Other 4,051 5,849 5,261 5,556 5,694 5,605 5,766 5,560 5,448 5,559 5,306 5,460' 5,223 38 Other liabilities 17,414 25,274 27,003 29,105 30,436 30,515 31,655 32,467 32,827 34,226 36,167 35,720' 36,836 39 General reserve accounts .... 12,823 18,105 18,830 19,423 19,603 19,549 19,718 20,471 20,407 20,365 21,133 20,633' 20,514 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.37—Continued 1987 1988 AAccccoouunntt 11998855 11998866 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Credit unions4 4400 TToottaall aasssseettss//lliiaabbiilliittiieess aanndd ccaappiittaall 118,010 147,726 153,253 154,549 156,086 160,644 1 1 1 1 1 1 1 4411 FFeeddeerraall 77,861 95,483 98,799 99,751 100,153 104,150 4422 SSttaattee 40,149 52,243 54,454 54,798 55,933 56,494 4433 LLooaannss oouuttssttaannddiinngg .... 73,513 86,137 86,101 87,089 87,765 90,912 n.a. 4444 FFeeddeerraall 47,933 55,304 55,118 55,740 55,952 58,432 4455 SSttaattee 25,580 30,833 30,983 31,349 31,813 32,480 n.a. I n.a. n.a. n.a. n.a. n.a. 4466 SSaavviinnggss 105,963 134,327 138,810 140,014 141,635 148,283 4477 FFeeddeerraall 70,926 87,954 91,042 92,012 97,189 96,137 1 1 1 1 1 1 4488 SSttaattee 35,037 46,373 47,768 48,002 49,248 52,146 Life insurance companies 49 Assets 825,901 937,551 978,455 978,455 985,942 995,576 1,005,592 1,017,018 1,026,919 1,021,148 1,024,460 1,033,170 Securities 50 Government 75,230 84,640 90,337 89,711 89,554 87,279 88,199 89,924 89,408 90,782 91,227 91,302 51 United States5.. 51,700 59,033 65,661 64,621 64,201 61,405 62,461 64,150 63,352 64,880 65,186 64,551 52 State and local . 9,708 11,659 10,860 11,068 11,208 11,485 11,277 11,190 11,087 11,363 11,539 11,758 53 Foreign6 13,822 13,948 13,816 14,022 14,145 14,389 14,461 14,584 14,969 14,539 14,502 14,993 54 Business 423,712 492,807 519,766 522,097 528,789 537,507 555,423 551,701 558,787 549,426 548,767 553,486 n.a. 55 Bonds 346,216 401,943 417,933 420,474 425,788 432,095 448,146 442,604 451,453 455,678 459,537 461,942 56 Stocks 77,496 90,864 101,833 101,623 103,001 105,412 107,277 109,097 107,334 93,748 89,230 91,544 57 Mortgages 171,797 193,842 195,743 197,315 198,760 200,382 201,297 202,241 204,264 206,507 208,839 212,375 58 Real estate 28,822 31,615 31,834 32,011 32,149 32,357 32,699 32,992 33,048 33,235 33,538 34,016 59 Policy loans 54,369 54,055 53,652 53,572 53,468 53,378 53,338 53,330 53,422 53,413 53,334 53,313 60 Other assets 71,971 80,592 82,105 83,749 83,222 84,390 85,420 86,830 87,991 87,785 88,755 88,678 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." Savings banks: Estimates by the National Council of Savings Institutions for all 2. Includes net undistributed income accrued by most associations. savings banks in the United States and for FDIC-insured savings banks that have 3. Excludes checking, club, and school accounts. converted to federal savings banks. 4. Data include all federally insured credit unions, both federal and state Credit unions: Estimates by the National Credit Union Administration for chartered, serving natural persons. federally chartered and federally insured state-chartered credit unions serving 5. Direct and guaranteed obligations. Excludes federal agency issues not natural persons. guaranteed, which are shown in the table under "Business" securities. Life insurance companies: Estimates of the American Council of Life Insurance 6. Issues of foreign governments and their subdivisions and bonds of the for all life insurance companies in the United States. Annual figures are annual- International Bank for Reconstruction and Development. statement asset values, with bonds carried on an amortized basis and stocks at NOTE. Savings and loan associations: Estimates by the FHLBB for all year-end market value. Adjustments for interest due and accrued and for associations in the United States based on annual benchmarks for non-FSLIC- differences between market and book values are not made on each item separately insured associations and the experience of FSLIC-insured associations. but are included, in total, in "other assets." FSLIC-insured federal savings banks: Estimates by the FHLBB for federal savings banks insured by the FSLIC and based on monthly reports of federally insured institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 DomesticN onfinancialS tatistics • June 1988 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Type of account or operation year year 1986 1987 Oct. Nov. Dec. Jan. Feb. U.S. budget2 1 Receipts, total 769,091 854,143 62,354 56,987 85,525 81,791 60,355 64,961 2 On-budget 568,862 640,741 45,992 40,630 67,645 60,645 40,610 44,189 3 Off-budget 200,228 213,402 16,362 13,357 17,880 21,146 19,745 20,772 4 Outlays, total 990,258 1,004,586 93,055' 83,911' 109,771' 65,786' 84,258' 94,108 5 On-budget 806,760 810,754 76,87C 67,140' 77,876' 66,573' 66,505' 76,088 6 Off-budget 183,498 193,832 16,185 16,770 31,896 -787 17,753 18,020 7 Surplus, or deficit (-), total -221,167 -150,444 -30,701r -26,924' -24,246' 16,005' -23,903' -29,147 8 On-budget -237,898 -170,014 -30,878' -26,510' -10,230' -5,928' -25,895' -31,899 9 Off-budget 16,731 19,570 176 -414 -14,016 21,933 1,992 2,752 Source of financing (total) 10 Borrowing from the public 236,187 150,070 27,282 23,603 9,766 5,281 17,160 11 Operating cash (decrease, or increase 12 Ot ( h - e ) r , 3 -14 - , 6 3 9 2 6 4 -5 5 , , 0 4 5 2 2 6 -1 5 , , 8 2 7 9 9 8 ' -1 1 3 7 , ,1 8 6 4 4 3 ' - 1 1 5 ,2 ,6 1 9 8 8 ' -1 -3 7 , , 7 55 3 5 c - 1 7 1 , , 2 0 5 0 7 2 ' 6 5 , , 0 9 0 7 9 9 MEMO 13 Treasury operating balance (level, end of period) 31,384 36,436 38,315 21,151 22,369 39,924 28,922 22,913 14 Federal Reserve Banks 7,514 9,120 8,898 3,595 5,313 10,276 2,473 2,403 15 Tax and loan accounts 23,870 27,316 29,416 17,556 17,056 29,648 26,450 20,510 1. FY 1987 total outlays and deficit do not correspond to the monthly data disability insurance trust funds) off-budget. because the Monthly Treasury Statement has not completed the monthly distri- 3. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to bution of revisions reflected in the fiscal year total in The Budget of the U.S. international monetary fund; other cash and monetary assets; accrued interest Government, Fiscal Year 1989. payable to the public; allocations of special drawing rights; deposit funds; 2. In accordance with the Balanced Budget and Emergency Deficit Control Act miscellaneous liability (including checks outstanding) and asset accounts; of 1985, all former off-budget entries are now presented on-budget. The Federal seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjust- Financing Bank (FFB) activities are now shown as separate accounts under the ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold. agencies that use the FFB to finance their programs. The act has also moved two SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S. social security trust funds (Federal old-age survivors insurance and Federal Government and the Budget of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1986 1987 1988 111999888666 111999888777 HI H2 HI H2 Jan. Feb. Mar. RECEIPTS 1 All sources 769,091 854,143 394,345 387,524 447,282 421,712 81,791 60,355 64,961 2 Individual income taxes, net 348,959 392,557 169,444 183,156 205,157 192,575 43,987 25,651 19,868 3 Withheld 314,803 322,463 153,919 164,071 156,760 170,203 24,979 28,046 33,296 4 Presidential Election Campaign Fund 36 33 31 4 30 4 0 4 7 5 Nonwithheld 105,994 142,957 78,981 27,733 112,421 31,223 19,262 1,179 4,315 6 Refunds 71,873 72,896 63,488 8,652 64,052 8,853 255 3,577 17,751 Corporation income taxes 7 Gross receipts 80,442 102,859 41,946 42,108 52,396 52,821 4,450 2,652 14,909 8 Refunds 17,298 18,933 9,557 8,230 10,881 7,119 820 1,677 2,203 9 Social insurance taxes and contributions, net 283,901 303,318 156,714 134,006 163,519 143,755 28,162 28,500 25,676 10 Employment taxes and contributions 255,062 273,185 139,706 122,246 146,696 130,388 26,920 25,739 25,141 11 Self-employment taxes and contributions 11,840 13,987 10,581 1,338 12,020 1,889 819 1,368 880 12 Unemployment insurance 24,098 25,418 14,674 9,328 14,514 10,977 883 2,399 179 13 Other net receipts 4,742 4,715 2,333 2,429 2,310 2,390 360 362 356 14 Excise taxes 32,919 32,510 15,944 15,947 15,845 17,680 2,393 2,204 2,885 15 Customs deposits 13,327 15,032 6,369 7,282 7,129 7,993 1,195 1,296 1,444 16 Estate and gift taxes 6,958 7,493 3,487 3,649 3,818 3,610 531 566 622 17 Miscellaneous receipts 19,884 19,307 10,002 9,605 10,299 10,399 1,893 1,164 1,760 OUTLAYS 18 All types 990,231 1,004,586 486,058 505,980'' 502,223' 532,107' 65,706 84,257 94,108 19 National defense 273,375 281,999 135,367 138,544 142,886 146,995 19,895 23,670 26,484 20 International affairs 14,152 11,649 5,384 8,876 4,374 4,487 1,074 516 1,490 21 General science, space, and technology .... 8,976 9,216 12,519 4,594 4,324 5,469 773 749 956 22 Energy 4,735 4,115 2,484 2,735 2,335 1,468 247 -1,635 538 23 Natural resources and environment 13,639 13,363 6,245 7,141 6,175 7,590 1,097 969 1,082 24 Agriculture 31,449 27,356 14,482 16,160 11,824 14,640 2,275 1,014 1,160 25 Commerce and housing credit 4,823 6,182 860 3,647 4,893 3,852 1,216 -866 2,409 26 Transportation 28,117 26,228 12,658 14,745 12,113 14,096 1,990 1,995 1,838 27 Community and regional development 7,233 5,051 3,169 3,494 3,108 2,075 452 459 535 28 Education, training, employment, and social services 30,585 29,724 14,712 15,287 14,182 15,592 2,771 3,041 2,545 29 Health 35,935 39,968 17,872 18,795 20,318 20,750 3,577 3,650 3,765 30 Social security and medicare 268,921 282,473 135,214 138,299 142,864 158,469 6,951 24,585 26,145 31 Income security 119,796 123,250 60,786 60,628 62,248 61,201 10,220 11,264 11,969 32 Veterans benefits and services 26,356 26,782 12,193 14,447 12,264 14,956 1,207 2,170 2,555 33 Administration of justice 6,603 7,548 3,352 3,360 3,626 4,291 706 704 868 34 General government 6,104 5,948 3,566 2,786 3,344 3,560 -52 806 383 35 General-purpose fiscal assistance 6,431 1,621 2,179 2,886 337 1,175 403 45 0 36 Net interest6 136,008 138,570 68,054 65,816 70,110 71,933 13,551 13,988 12,187 37 Undistributed offsetting receipts -33,007 -36,455 -17,183r -16,286r -19,102' -20,492' -2,647 -2,868 -2,802 1. Functional details do not add to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous revisions to monthly totals have not been distributed among functions. Fiscal year receipts. total for outlays does not correspond to calendar year data because revisions from 6. Net interest function includes interest received by trust funds. the Budget have not been fully distributed across months. 7. Consists of rents and royalties on the outer continental shelf and U.S. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. government contributions for employee retirement. 3. Old-age, disability, and hospital insurance. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 4. Federal employee retirement contributions and civil service retirement and Receipts and Outlays of the U.S. Government, and the U.S. Office of Managedisability fund. ment and Budget, Budget of the U.S. Government, Fiscal Year 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • June 1988 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1985 1986 1987 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 1,827.5 1,950.3 1,991.1 2,063.6 2,129.5 2,218.9 2,250.7 2,313.1 2,354.3 2 Public debt securities 1,823.1 1,945.9 1,986.8 2,059.3 2,125.3 2,214.8 2,246.7 2,309.3 2,350.3 3 Held by public 1,506.6 1,597.1 1,634.3 1,684.9 1,742.4 1,811.7 1,839.3 1,871.1 1,893.1 4 Held by agencies 316.5 348.9 352.6 374.4 382.9 403.1 407.5 438.1 457.2 5 Agency securities 4.4 4.4 4.3 4.3 4.2 4.0 4.0 3.8 4.0 6 Held by public 3.3 3.3 3.2 3.2 3.2 3.0 2.9 2.8. 3.0 7 Held by agencies 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.0 8 Debt subject to statutory limit 1,823.8 1,932.4 1,973.3 2,060.0 2,111.0 2,200.5 2,232.4 2,295.0 2,336.0 9 Public debt securities 1,822.5 1,931.1 1,972.0 2,058.7 2,109.7 2,199.3 2,231.1 2,293.7 2,334.7 10 Other debt1 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,823.8 2,078.7 2,078.7 2,078.7 2,111.0 2,300.0 2,300.0 2,320.0 2,800.0 1. Includes guaranteed debt of Treasury and other federal agencies, specified SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District United States. of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1987 Type and holder 1984 1986 1987 Q1 Q2 Q3 Q4 1 Total gross public debt 1,410.7 1,663.0 1,945.9 2,214.8 2,214.8 2,246.7 2,309.3 2,350.3 By type 2 Interest-bearing debt 1,400.9 1,660.6 1,943.4 2,212.0 2,212.0 2,244.0 2,306.7 2,347.8 3 Marketable 1,050.9 1,247.4 1,437.7 1,619.0 1,619.0 1,635.7 1,659.0 1.676.0 4 Bills 343.8 374.4 399.9 426.7 426.7 406.2 391.0 378.3 5 Notes 573.4 705.1 812.5 927.5 927.5 955.3 984.4 1.005.1 6 Bonds 133.7 167.9 211.1 249.8 249.8 259.3 268.6 277.6 7 Nonmarketable1 350.0 413.2 505.7 593.1 593.1 608.3 647.7 671.8 8 State and local government series 36.7 44.4 87.5 110.5 110.5 118.5 125.4 129.0 9 Foreign issues' 10.4 9.1 7.5 4.7 4.7 4.9 5.1 4.4 10 Government 10.4 9.1 7.5 4.7 4.7 4.9 5.1 4.4 1 1 1 2 Sa P v u in b g l s ic bonds and notes 70. . 7 0 73. . 1 0 78. . 1 0 90. . 6 0 90. . 6 0 93. . 0 0 95. . 2 0 97. . 0 0 13 Government account series3 231.9 286.2 332.2 386.9 386.9 391.4 421.6 440.7 14 Non-interest-bearing debt 9.8 2.3 2.5 2.8 2.7 2.6 2.5 By holder4 15 U.S. government agencies and trust funds 236.3 289.6 348.9 403.1 403.1 407.5 438.1 457.2 16 Federal Reserve Banks 151.9 160.9 181.3 211.3 211.3 196.4 212.3 211.9 17 Private investors 1,022.6 1,212.5 1,417.2 1,602.0 1,602.0 1,641.4 1,657.7 1,682.6 18 Commercial banks 188.8 183.4 230.1 232.1 232.1 232.0 237.1 250.5 19 Money market funds 22.8 25.9 25.1 28.6 28.6 18.8 20.6 n.a. 20 Insurance companies 88.7 76.4 95.8 106.9 106.9 n.a. n.a. n.a. 21 Other companies 39.7 50.1 59.0 68.8 68.8 73.4 78.7 80.2 22 State and local Treasury s 155.1 179.4 n.a. n.a. n.a. n.a. n.a. Individuals 23 Savings bonds 71.5 74.5 79.8 92.3 92.3 94.7 96.8 98.5 24 Other securities 61.9 69.3 75.0 70.5 70.5 68.3 68.6 70.4 25 Foreign and international5 166.3 192.9 212.5 251.5 251.5 250.7 270.1 268.4 26 Other miscellaneous investors6 259.8 360.6 n.a. n.a. n.a. n.a. n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes tion Administration; depository bonds, retirement plan bonds, and individual non-interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated se- mutual savings banks, corporate pension trust funds, dealers and brokers, certain ries held by foreigners. U.S. Treasury deposit accounts, and federally-sponsored agencies. 3. Held almost entirely by U.S. Treasury agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds Statement of the Public Debt of the United States; data by holder. Treasury are actual holdings; data for other groups are Treasury estimates. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Par value; averages of daily figures, in millions of dollars 1988 1988 IItteemm 11998855 11998866 11998877rr Jan/ Feb/ Mar. Feb. 24 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Immediate delivery2 1 U.S. Treasury securities 75,331 95,445 110,052 108,501 105,589 90,640 91,826 95,652 88,724 78,322 96,372 102,780 By maturity 2 Bills 32,900 34,247 37,924 31,955 28,127 28,277 25,202 22,997 25,866 28,075 27,626 32,771 3 Other within 1 year 1,811 2,115 3,272 3,788 3,708 2,986 3,628 3,431 2,628 2,731 2,960 3,301 4 1-5 years 18,361 24,667 27,918 28,692 30,072 23,706 30,481 24,435 20,680 18,305 28,087 30,484 5 5-10 years 12,703 20,456 24,014 27,315 24,285 21,797 18,822 29,189 24,532 18,099 22,646 21,641 6 Over 10 years 9,556 13,961 16,923 16,751 19,398 13,874 13,693 15,600 15,019 11,111 15,054 14,584 By type of customer V U.S. government securities dealers 3,336 3,670 2,936 2,755 2,996 2,743 2,584 3,296 3,239 2,389 2,393 22,,778866 8 U.S. government securities brokers 36,222 49,558 61,539 63,590 59,599 52,625 52,172 54,330 49,920 44,304 56,913 62,387 9 All others3 35,773 42,218 45,576 42,155 42,993 35,272 37,070 38,025 35,564 31,628 37,066 37,606 10 Federal agency securities 11,640 16,748 18,087 18,086 17,754 15,677 15,938 18,165 18,322 15,820 11,197 13,767 11 Certificates of deposit 4,016 4,355 4,112 4,709 3,634 3,127 3,737 3,410 3,246 2,370 3,232 3,717 12 Bankers acceptances 3,242 3,272 2,965 3,173 2,781 2,278 2,676 2,544 2,508 2,132 2,243 2,252 13 Commercial paper 12,717 16,660 17,135 19,478 17,981 17,257 18,204 18,847 17,547 18,608 17,575 1144,,771122 Futures contracts 14 Treasury bills 5,561 3,311 3,233 2,783 2,637 2,768 1,731 2,587 2,332 2,166 3,018 3,123 15 Treasury coupons 6,085 7,175 8,964 9,414 9,566 9,414 8.549 10,745 9,494 6,534 11,086 10,804 16 Federal agency securities 252 16 5 1 3 6 0 8 0 0 0 30 Forward transactions 17 U.S. Treasury securities 1,283 1,876 2,029 1,699 3,605 1,454 2,135 1,558 1,424 761 2,747 955 18 Federal agency securities 3,857 7,831 9,290 6,545 6,910 8,426 4,705 5,759 8,856 10,006 9,565 5,733 1. Transactions are market purchases and sales of securities as reported to the securities, nondealer departments of commercial banks, foreign banking agencies, Federal Reserve Bank of New York by the U.S. government securities dealers on and the Federal Reserve System. its published list of primary dealers. 4. Futures contracts are standardized agreements arranged on an organized Averages for transactions are based on the number of trading days in the period. exchange in which parties commit to purchase or sell securities for delivery at a The figures exclude allotments of, and exchanges for, new U.S. Treasury future date. securities, redemptions of called or matured securities, purchases or sales of 5. Forward transactions are agreements arranged in the over-the-counter securities under repurchase agreement, reverse repurchase (resale), or similar market in which securities are purchased (sold) for delivery after 5 business days contracts. from the date of the transaction for Treasury securities (Treasury bills, notes, and 2. Data for immediate transactions do not include forward transactions. bonds) or after 30 days for mortgage-backed agency issues. 3. Includes, among others, all other dealers and brokers in commodities and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • June 1988 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1988 1988 IItteemm 11998855 11998866 11998877'' Jan. Feb/ Mar. Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Positions Net immediate2 1 U.S. Treasury securities 7,391 12,912 -6,216 -13,286r -10,233 -10,138 -6,582 -9,703 -9,294 -14,050 -10,322 2 Bills 10,075 12,761 4,317 2,293 3,156 3,290 2,672 1,782 3,215 3,038 3,655 3 Other within 1 year 1,050 3,706 1,557 -761 -784 -780 -668 -523 -801 -1,109 -802 4 1-5 years 5,154 9,146 649 -70' 2,730 2,992 6,353 4,427 3,038 735 2,834 5 5-10 years -6,202 -9,505 -6,564 -5,610 -7,492 -8,193 -8,208 -8,485 -7,643 -9,126 -7,590 6 Over 10 years -2,686 -3,197 -6,174 -9,137 -7,843 -7,447 -6,731 -6,904 -7,102 -7,587 -8,419 7 Federal agency securities 22,860 32,984 31,910 23,943 26,654 28,780 26,783 29,375 30,177 28,747 27,324 8 Certificates of deposit 9,192 10,485 8,188 5,866 5,314 5,619 4,668 5,403 5,367 5,808 6,175 9 Bankers acceptances 4,586 5,526 3,661 2,246 2,880 3,197 3,431 3,649 2,832 2,823 3,219 10 Commercial paper 5,570 8,089 7,496 5,533 5,819 6,204 6,331 66,,445522 66,,448899 66,,110022 55,,775522 Futures positions 11 Treasury bills -7,322 -18,059 -3,373 -2,128 -4,556 -4,192 -6,027 -6,046 -3,680 -2,886 -3,274 12 Treasury coupons 4,465 3,473 5,988 7,826 5,066 5,406 5,615 5,127 5,557 5,353 5,578 13 Federal agency securities -722 -153 -95 0 0 0 0 0 0 0 0 Forward positions 14 U.S. Treasury securities -911 -2,144 -1,211 -1,175 736 734 287 720 -5 736 1,393 15 Federal agency securities -9,420 -11,840 -18,817 -14,396 -15,611 -16,442 -14,375 -15,563 -18,184 -17,208 -15,738 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 68,035 98,954 124,791 126,667 127,093 n.a. 128,559 133,085 127,703 n.a. n.a. 17 Term 80,509 108,693 148,033 155,658 162,899 n.a. 155,772 115544,,112266 115522,,551144 n.a. n.a. Repurchase agreements 18 Overnight and continuing 101,410 141,735 170,840 160,399 163,346 n.a. 165,187 167,593 170,670 n.a. n.a. 19 Term 70,076 102,640 120,980 122,464 131,616 n.a. 124,334 127,084 125,601 n.a. n.a. 1. Data for dealer positions and sources of financing are obtained from reports reverses to maturity, which are securities that were sold after having been submitted to the Federal Reserve Bank of New York by the U.S. Treasury obtained under reverse repurchase agreements that mature on the same day as the securities dealers on its published list of primary dealers. securities. Data for immediate positions do not include forward positions. Data for positions are averages of daily figures, in terms of par value, based on 3. Figures cover financing involving U.S. Treasury and federal agency securithe number of trading days in the period. Positions are net amounts and are shown ties, negotiable CDs, bankers acceptances, and commercial paper. on a commitment basis. Data for financing are in terms of actual amounts 4. Includes all reverse repurchase agreements, including those that have been borrowed or lent and are based on Wednesday figures. arranged to make delivery on short sales and those for which the securities 2. Immediate positions are net amounts (in terms of par values) of securities obtained have been used as collateral on borrowings, that is, matched agreements. owned by nonbank dealer firms and dealer departments of commercial banks on 5. Includes both repurchase agreements undertaken to finance positions and a commitment, that is, trade-date basis, including any such securities that have "matched book" repurchase agreements. been sold under agreements to repurchase (RPs). The maturities of some NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially repurchase agreements are sufficiently long, however, to suggest that the securi- estimated. ties involved are not available for trading purposes. Immediate positions include Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1987 1988 AAggeennccyy 11998844 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb. 1 Federal and federally sponsored agencies 271,220 293,905 307,361 320,789 328,990 334,300' 341,386 338,483 n.a. 2 Federal agencies 35,145 36,390 36,958 37,177 37,207 37,303 37,981 37,637 37,286 3 Defense Department1 142 71 33 15 15 15 13 13 12 4 Export-Import Bank2' 15,882 15,678 14,211 12,650 12,470 12,470 11,978 11,978 11,978 5 Federal Housing Administration 133 115 138 178 182 182 183 98 101 6 Government National Mortgage Association participation certificates 2,165 2,165 2,165 1,965 1,965 1,965 1,615 1,615 1,165 7 Postal Service6 1,337 1,940 3,104 4,603 4,603 4,603 6,103 6,103 6,103 8 Tennessee Valley Authority 15,435 16,347 17,222 17,766 17,972 18,068 18,089 17,830 17,927 9 United States Railway Association6 51 74 85 0 0 0 0 0 0 10 Federally sponsored agencies7 237,012 257,515 270,553 283,920' 291,783 296,997' 303,405 300,846 n.a. 11 Federal Home Loan Banks 65,085 74,447 88,752 104,380 108,108 111,185 115,725 116,374 117,569 12 Federal Home Loan Mortgage Corporation 10,270 11,926 13,589 14,949 16,703 17,762 17,645 15,581 n.a. 13 Federal National Mortgage Association 83,720 93,896 93,563 92,618 94,298 95,096 97,057 97,195 98,593 14 Farm Credit Banks 72,192 68,851 62,478 55,584' 55,854 55,584' 55,275 54,072 55,275 15 Student Loan Marketing Association8 5,745 8,395 12,171 16,389 16,220 16,125 16,503 16,424 16,923 16 Financing Corporation n.a. n.a. n.a. n.a. 600 1,200 1,200 1,200 1,850 MEMO 17 Federal Financing Bank debt10 145,217 153,373 157,510 157,250' 156,919 156,850 152,417 152,099 150,178 Lending to federal and federally sponsored agencies 18 Export-Import Bank3 15,852 15,670 14,205 12,644 12,464 12,464 11,972 1111,,997722 1111,,997722 19 Postal Service6 1,087 1,690 2,854 4,353 4,353 4,353 5,853 5,853 5,853 20 Student Loan Marketing Association 5,000 5,000 4,970 4,940' 4,940' 4,940' 4,940 4,940 4,940 21 Tennessee Valley Authority 13,710 14,622 15,797 16,386 16,592 16,688 16,709 16,450 16,547 22 United States Railway Association 51 74 85 0 0 0 0 0 0 Other Lending11 23 Farmers Home Administration 58,971 64,234 65,374 65,009 64,934 64,934 59,674 5599,,667744 5599,,667744 24 Rural Electrification Administration 20,693 20,654 21,680 21,197 21,226 21,215 21,191 21,187 19,193 25 Other 29,853 31,429 32,545 32,721' 32,41(y 32,256' 32,078 32,023 31,999 1. Consists of mortgages assumed by the Defense Department between 1957 8. Before late 1981, the Association obtained financing through the Federal and 1963 under family housing and homeowners assistance programs. Financing Bank (FFB). 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 9. The Financing Corporation, established in August 1987 to recapitalize the 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 4. Consists of debentures issued in payment of Federal Housing Administration October 1987. insurance claims. Once issued, these securities may be sold privately on the 10. The FFB, which began operations in 1974, is authorized to purchase or sell securities market. obligations issued, sold, or guaranteed by other federal agencies. Since FFB 5. Certificates of participation issued before fiscal 1969 by the Government incurs debt solely for the purpose of lending to other agencies, its debt is not National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing included in the main portion of the table in order to avoid double counting. and Urban Development; Small Business Administration; and the Veterans 11. Includes FFB purchases of agency assets and guaranteed loans; the latter Administration. contain loans guaranteed by numerous agencies with the guarantees of any 6. OfF-budget. particular agency being generally small. The Farmers Home Administration item 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- consists exclusively of agency assets, while the Rural Electrification Administratures. Some data are estimated. tion entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic NonfinancialS tatistics • June 1988 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1987 1988 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998855 11998866 11998877 Aug. Sept. Oct. Nov. Dec. Jan. Feb.' Mar. 1 All issues, new and refunding1 214,189 147,011 95,029 6,500 5,510 6,257 7,758 7,671 5,412 8,585 9,113 Type of issue 2 General obligation 52,622 46,346 29,599 1,975 1,755 1,127 2,449 1,894 1,259 2,880 2,836 3 Revenue 161,567 100,664 65,430 4,525 3,755 5,130 5,309 5,777 4,153 5,705 6,277 Type of issuer 4 State 13,004 14,474 8,426 398 535 385 431 550 423 1,197 613 5 Special district and statutory authority 134,363 89,997 61,663 4,508 3,712 4,668 4,612 4,972 3,220 5,154 5,823 6 Municipalities, counties, and townships 66,822 42,541 24,940 1,594 1,263 1,204 2,715 2,149 1,769 2,234 2,677 7 Issues for new capital, total 156,050 83,490 53,677 5,084 4,340 4,095 6,628 5,351 2,862 5,773 5,773 Use of proceeds 8 Education 16,658 16,948 9,217 869 653 480 1,006 748 841 754 921 9 Transportation 12,070 11,666 3,589 226 311 168 329 451 189 826 656 10 Utilities and conservation 26,852 35,383 7,299 424 491 590 1,042 350 326 655 1,017 11 Social welfare 63,181 17,332 9,627 903 647 896 1,784 1,134 740 650 1,160 12 Industrial aid 12,892 5,594 6,083 1,630 412 683 229 1,155 153 2,473 235 13 Other purposes 24,398 47,433 17,862 1,033 1,826 1,278 2,238 1,513 613 415 1,784 1. Par amounts of long-term issues based on date of sale. SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986. 2. Includes school districts beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1988 Type of issue or issuer, or use 1987 July Aug. Sept. Nov. Feb. 1 All issues 239,015 423,726 286,929 27,411 21,888 29,363 20,710 14,322 11,872 22,102' 21,873 2 Bonds3 203,500 355,293 233,578 22,071 17,685 23,705 17,631 13,624 11,098 19,412' 17,978 Type of offering 4 3 P P r u i b v l a ic te , d p o la m c e e s m ti e c n t, domestic3 . 1 4 1 6 9 , , 2 5 0 5 0 9 2 8 3 0 1 , , 7 9 6 3 0 6 20 n 9 . , a 2 . 7 9 1 n 9, . 0 a 4 . 5 1 n 4, . 8 a 5 . 2 22 n , . 0 a 4 . 5 1 n 6, . 1 a. 3 5 1 n 2, . 8 a 9 . 1 1 n 0, . 7 a 6 . 3 18 n , . 1 a 7 . 3 1 n 6, . 1 a 8 . 7 5. Sold abroad 37,781 42,596 24,299 3,026 2,833 1,660 1,496 733 335 1,239 1,791 Industry group 6 Manufacturing 63,973 91,548 45,240 5,552 3,343 3,506 2,724 1,280 891 3,034' 3,134 7 Commercial and miscellaneous 17,066 40,124 19,918 1,037 1,281 1,479 1,165 483 2,577 2,084' 1,347 8 Transportation 6,020 9,971 2,039 343 296 25 263 0 226 0 200 9 Public utility 13,649 31,426 17,412 1,654 1,533 1,702 1,025 895 1,570 1,142' 1,718 10 Communication 10,832 16,659 5,792 119 856 930 1,384 290 510 206 101 11 Real estate and financial 91,958 165,564 143,182 13,366 10,377 16,063 11,071 10,676 5,324 12,946' 11,478 12 Stocks3 35,515 68,433 n.a. 5,340 4,203 5,658 3,079 698 774 2,690 3,895 Type 13 Preferred 6,505 11,514 10,123 1,157 906 1,112 236 162 61 1,388' 361 14 Common 29,010 50,316 43,228 4,183 3,297 4,546 2,843 533 713 1,302' 3,534 15 Private placement3 6,603 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 5,700 15,027 9,642 1,046 370 703 237 76 268' 295 17 Commercial and miscellaneous 9,149 10,617 11,461 879 996 807 656 86 14 360 39 18 Transportation 1,544 2,427 1,795 379 0 11 40 149 1 1 397 19 Public utility 1,966 4,020 3,839 472 85 529 75 25 0 100 142 20 Communication 978 1,825 1,264 294 277 75 107 1 11 60 0 21 Real estate and financial 16,178 34,517 25,350 2,270 2,475 3,378 1,498 200 672 1,901' 3,022 1. Figures which represent gross proceeds of issues maturing in more than one 2. Monthly data include only public offerings. year, are principal amount or number of units multiplied by offering price. 3. Data are not available on a monthly basis. Excludes secondary offerings, employee stock plans, investment companies other SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange than closed-end, intracorporate transactions, equities sold abroad, and Yankee Commission and the Board of Governors of the Federal Reserve System. bonds. Stock data include ownership securities issued by limited partnerships. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Market and Corporate Finance A35 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1987 1988 IItteemm 11998866 11998877 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. INVESTMENT COMPANIES1 1 Sales of own shares2 411,751 381,260 27,970 26,455 24,834 25,990 21,927 26,494 30,343 23,265 2 Redemptions of own shares3 239,394 314,252 22,807 22,561 28,323 34,597 20,400 28,099 22,324 20,914 3 Net sales 172,357 67,008 5,763 3,894 -3,489 -8,607 1,507 -1,605 8,019 2,351 4 Assets4 424,156 453,842 531,022 539,171 521,007 456,422 446,479 453,842 468,998 481,232 5 Cash position5 30,716 38,006 41,587 40,802 42,397 40,929 41,432 38,006 40,157 41,232 6 Other 393,440 415,836 489,435 498,369 478,610 415,493 405,047 415,836 428,841 439,995 1. Excluding money market funds. 5. Also includes all U.S. government securities and other short-term debt 2. Includes reinvestment of investment income dividends. Excludes reinvest- securities. ment of capital gains distributions and share issue of conversions from one fund to another in the same group. NOTE. Investment Company Institute data based on reports of members, which 3. Excludes share redemption resulting from conversions from one fund to comprise substantially all open-end investment companies registered with the another in the same group. Securities and Exchange Commission. Data reflect newly formed companies after 4. Market value at end of period, less current liabilities. their initial offering of securities. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1986 1987 AAccccoouunntt 11998855 11998866 11998877'''' Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4R 1 Corporate profits with inventory valuation and capital consumption adjustment 277.6 284.4 304.7 288.0 282.3 286.4 281.1 294.0 296.8 314.9 313.0 2 Profits before tax 224.8 231.9 274.0 218.9 224.4 236.3 247.9 257.0 268.7 284.9 285.6 3 Profits tax liability 96.7 105.0 136.3 98.1 102.1 106.1 113.9 128.0 134.2 143.0 140.0 4 Profits after tax 128.1 126.8 137.7 120.9 122.3 130.2 134.0 129.0 134.5 141.9 145.6 5 Dividends 81.3 86.8 93.8 84.3 86.6 87.7 88.6 90.3 92.4 95.2 97.3 6 Undistributed profits 46.8 40.0 43.9 36.6 35.7 42.5 45.4 38.7 42.1 46.7 48.3 7 Inventory valuation -.8 6.5 -17.5 17.8 11.3 6.0 -8.9 -11.3 -20.0 -17.6 -21.3 8 Capital consumption adjustment 53.5 46.0 48.1 51.3 46.7 44.0 42.1 48.2 48.0 47.7 48.7 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • June 1988 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1986 1987 1988 IInndduussttrryy 11998866 11998877 1199888811 Q3 Q4 Q1 Q2 Q3 Q4 QL1 Q21 1 Total nonfarm business 379.47 388.60 422.96 375.50 386.09 374.23 377.65 393.13 409.37 422.75 427.09 Manufacturing 2 Durable goods industries 69.14 70.91 75.75 69.42 69.87 70.47 68.76 71.78 72.64 80.13 76.92 3 Nondurable goods industries 73.56 74.55 83.93 70.01 74.20 70.18 72.03 75.78 80.20 81.00 84.53 Nonmanufacturing 4 Mining 11.22 11.34 12.07 10.14 10.31 10.31 11.02 11.64 12.39 12.26 12.41 Transportation 5 Railroad 6.66 5.91 6.51 7.02 6.41 5.55 5.77 6.21 6.10 7.29 6.31 6 Air 6.26 6.55 7.52 5.78 6.84 7.46 5.72 5.91 7.12 7.72 7.34 7 Other 5.89 6.39 7.06 6.01 6.25 5.97 6.19 7.05 6.35 7.48 6.80 Public utilities 8 Electric 33.91 31.58 32.13 33.81 33.78 30.85 31.13 31.31 33.01 31.59 33.01 9 Gas and other 12.47 13.18 14.41 12.00 12.34 12.75 12.35 13.58 14.06 14.56 13.82 10 Commercial and other2 160.38 168.19 183.57 161.31 166.08 160.70 164.69 169.87 177.50 180.72 185.97 ATrade and services are no longer being reported separately. They are included 2. "Other" consists of construction; wholesale and retail trade: finance and in Commercial and other, line 10. insurance; personal and business services; and communication. 1. Anticipated by business. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A37 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1986 1987 AAccccoouunntt 11998833 11998844 11998855 Q2 Q3 Q4 QL Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer 83.3 89.9 113.4 125.1 137.1 136.5 133.9 138.0 144.4 143.8 2 Business 113.4 137.8 158.3 167.7 161.0 174.8 182.8 189.0 188.7 202.6 1 Real estate 20.5 23.8 28.9 30.8 32.1 33.7 35.1 36.9 38.3 40.3 4 Total 217.3 251.5 300.6 323.6 330.2 345.0 351.8 363.9 371.5 386.8 Less: 5 Reserves for unearned income 30.3 33.8 39.2 40.7 42.4 41.4 40.4 41.2 42.8 45.3 6 Reserves for losses 3.7 4.2 4.9 5.1 5.4 5.8 5.9 6.2 6.6 6.8 7 Accounts receivable, net 183.2 213.5 256.5 277.8 282.4 297.8 305.5 316.5 322.1 334.7 8 All other 34.4 35.7 45.3 48.8 59.9 57.9 59.0 57.7 65.0 58.2 9 Total assets 217.6 249.2 301.9 326.6 342.3 355.6 364.5 374.2 387.1 392.9 LIABILITIES 10 Bank loans 18.3 20.0 20.6 19.2 20.2 22.2 17.3 17.2 16.2 16.5 11 Commercial paper 60.5 73.1 99.2 108.4 112.8 117.8 119.1 120.4 123.5 126.5 Debt 12 Other short-term 11.1 12.9 12.5 15.4 16.0 17.2 21.6 24.4 26.9 27.0 13 Long-term 67,7 77.2 93.1 105.2 109.8 115.6 118.4 121.5 128.0 130.1 14 All other liabilities 31.2 34.5 40.9 40.1 44.1 43.4 46.3 48.3 48.7 50.1 15 Capital, surplus, and undivided profits 28.9 31.5 35.7 38.4 39.4 39.4 41.8 42.3 43.8 42.6 16 Total liabilities and capital 217.6 249.2 301.9 326.6 342.3 355.6 364.5 374.2 387.1 392.9 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 1987 1988 TTyyppee 11998855 11998866 Aug. Sept. Oct. Nov. Dec. Jan/ Feb. 1 Total 156,297 171,966 191,637 193,752 201,129 202,829 205,869 206,755 207,278 Retail financing of installment sales 2 Automotive (commercial vehicles) 20,660 25,952 32,042 32,656 33,865 34,454 35,674 36,419 36,318 3 Business, industrial, and farm equipment 22,483 22,950 23,870 24,328 24,763 24,764 24,987 25,474 25,241 Wholesale financing 4 Automotive 23,988 23,419 27,782 26,792 30,396 30,901 31,059 30,115 28,654 5 Equipment 4,568 5,423 5,504 5,527 5,729 5,794 5,693 5,308 5,323 6 All other 6,809 7,079 7,768 7,956 8,074 8,151 8,408 8,454 8,331 Leasing 7 Automotive 16,275 19,783 21,333 21,842 21,883 22,013 21,943 22,943 23,100 8 Equipment 34,768 37,833 40,636 41,134 41,911 41,964 43,002 43,245 43,877 9 Loans on commercial accounts receivable and factored commercial accounts receivable 15,765 15,959 17,418 17,713 18,362 18,501 18,024 18,506 19,372 10 All other business credit 10,981 13,568 15,284 15,804 16,146 16,287 17,079 16,291 17,062 Net change (during period) 11 19,607 15,669 2,418 2,115 7,377 1,700 3,040 886 523 Retail financing of installment sales 12 Automotive (commercial vehicles) 5,067 5,292 948 614 1,209 589 1,220 745 -101 13 Business, industrial, and farm equipment -363 467 143 458 435 1 223 487 -232 Wholesale financing 14 Automotive 5,423 -569 -321 -990 3,604 505 158 -944 -1,461 15 Equipment -867 855 90 23 202 65 -101 -385 14 16 All other 1,069 270 104 188 118 77 257 46 -123 Leasing 17 Automotive 3,896 3,508 526 509 41 130 -70 1,000 157 18 Equipment 2,685 3,065 419 498 777 53 1,038 243 632 19 Loans on commercial accounts receivable and factored commercial accounts receivable 2,161 194 258 295 649 139 -477 482 867 20 All other business credit 536 2,587 251 520 342 141 792 -788 770 1. These data also appear in the Board's G.20 (422) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • June 1988 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1987 1988 IItteemm Sept. Oct. Nov. Dec. Jan. Feb. Mar. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms 1 Purchase price (thousands of dollars) 104.1 118.1 137.0 140.2 145.3 135.9 147.3 150.1 139.4' 144.6 2 Amount of loan (thousands of dollars) 77.4 86.2 100.5 100.8 106.1 100.2 107.7 108.4 104.3r 105.3 3 Loan/price ratio (percent) 77.1 75.2 75.2 74.6 75.0 75.4 74.9 74.0 76.4r 75.5 4 Maturity (years) 26.9 26.6 27.8 27.3 28.3 28.3 28.2 28.2 28.1 27.3 5 Fees and charges (percent of loan amount) 2.53 2.48 2.26 2.08 2.34 2.33 2.22 2.17 2.23' 2.27 6 Contract rate (percent per year) 11.12 9.82 8.94 9.03 8.86 8.92 8.78 8.75 8.76r 8.77 Yield (percent per year) 7 FHLBB series3 11.58 10.25 9.31 9.37 9.25 9.30 9.15 9.10 9.12r 9.14 8 HUD series4 12.28 10.07 10.13 10.86 10.87 10.59 10.52 10.09 n.a. n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 12.24 9.91 10.12 10.71 10.90 10.76 10.63 10.17 n.a. n a. 10 GNMA securities6 11.61 9.30 9.42 10.40 10.53 9.96 10.18 9.83 9.53 9.53 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 94,574 98,048 95,030 94,884 95,097 95,411 96,649 97,159 98,358 99,787 12 FHA/VA-insured 34,244 29,683 21,660 21,620 21,481 21,510 20,288 20,237' 20,181' 20,094 13 Conventional 60,331 68,365 73,370 73,264 73,617 73,902 76,361 76,923' 78,177' 79,693 Mortgage transactions (during period) 14 Purchases 21,510 30,826 20,531 1,743 1,278 1,297 3,747 1,267 2,629 2,776 Mortgage commitments1 15 Contracted (during period) 20,155 32,987 25,415 1,842 1,566 2,899 3,115 2,254 2,516 3,823 16 Outstanding (end of period) 3,402 3,386 4,886 5,627 5,046 5,845 4,886 5,542 4,966 6,149 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 12,399 13,517 12,802 12,940 12,782 12,904 12,871 13,090 A A 18 FHA/VA 841 746 686 672 666 663 657 632 T T 19 Conventional 11,559 12,771 12,116 12,269 12,115 12,240 12,215 12,458 Mortgage transactions (during period) 1 1 20 Purchases 44,012 103,474 76,845 4,297 3,079 2,978 3,267 2,168 n.a. n.a. 21 Sales 38,905 100,236 75,082 4,160 3,111 2,742 3,201 1,832 I 1 Mortgage commitments9 22 Contracted (during period) 48,989 110,855 71,467 3,507 3,011 2,668 2,693 3,868 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associmajor institutional lender groups; compiled by the Federal Home Loan Bank ation guaranteed, mortgage-backed, fully modified pass-through securities, as- Board in cooperation with the Federal Deposit Insurance Corporation. suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying 2. Includes all fees, commissions, discounts, and "points" paid (by the the prevailing ceiling rate. Monthly figures are averages of Friday figures from the borrower or the seller) to obtain a loan. Wall Street Journal. 3. Average effective interest rates on loans closed, assuming prepayment at the 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. Based on transactions on first day of subsequent month. Large securities swap programs, while the corresponding data for FNMA exclude swap monthly movements in average yields may reflect market adjustments to changes activity. in maximum permissable contract rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A39 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1986 1987 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998855 11998866 11998877 Q4 Qi Q2 Q3 Q4 1 All holders 2,269,173 2,568,562 2,906,394 2,568,562 2,665,207 2,756,124 2,831,431 2,906,394 2 1- to 4-family 1,467,409 1,668,209 1,889,364 1,668,209 1,714,213 1,783,521 1,835,671 1,889,364 3 Multifamily 214,045 247,024 272,604 247,024 257,615 263,513 268,322 272,604 4 Commercial 482,029 556,569 654,288 556,569 599,822 616,968 636,508 654,288 5 105,690 96,760 90,138 %,760 93,557 92,122 90,930 90,138 6 Selected financial institutions 1,390,394 1,507,289 1,699,702 1,507,289 1,559,549 1,606,622 1,650,462 1,699,702 7 Commercial banks 429,196 502,534 587,557 502,534 519,474 544,381 566,213 587,557 8 1- to 4-family 213,434 235,814 273,214 235,814 243,518 255,672 262,869 273,214 9 Multifamily 23,373 31,173 32,433 31,173 29,515 30,496 31,311 32,433 10 Commercial 181,032 222,799 267,221 222,799 233,234 244,385 257,882 267,221 11 Farm 11,357 12,748 14,689 12,748 13,207 13,828 14,151 14,689 12 Savings institutions3 760,499 777,312 861,233 777,312 809,245 824,961 841,658 861,233 13 1- to 4-family 554,301 558,412 602,740 558,412 555,693 572,075 586,221 602,740 14 Multifamily 89,739 97,059 107,054 97,059 104,035 102,933 104,764 107,054 15 Commercial 115,771 121,236 150,680 121,236 148,712 149,183 149,904 150,680 16 Farm 688 605 0 605 805 0 0 0 17 Life insurance companies 171,797 193,842 210,563 193,842 195,743 200,382 204,263 210,563 18 1- to 4-family 12,381 12,827 13,142 12,827 12,903 12,745 12,742 13,142 19 Multifamily 19,894 20,952 22,168 20,952 20,934 21,663 21,968 22,168 20 Commercial 127,670 149,111 165,364 149,111 151,420 155,611 159,464 165,364 21 Farm 11,852 10,952 9,889 10,952 10,486 10,363 10,089 9,889 22 Finance companies 28,902 33,601 40,349 33,601 35,087 36,898 38,328 40,349 23 Federal and related agencies 166,928 203,800 192,401 203,800 199,509 196,514 191,520 192,401 24 Government National Mortgage Association 1,473 889 455 889 687 667 458 455 25 1- to 4-family 539 47 24 47 46 45 25 24 26 Multifamily 934 842 431 842 641 622 433 431 27 Farmers Home Administration5 733 48,421 42,978 48,421 48,203 48,085 42,978 42,978 28 1- to 4-family 183 21,625 18,111 21,625 21,390 21,157 18,111 18,111 29 Multifamily 113 7,608 7,903 7,608 7,710 7,808 7,903 7,903 30 Commercial 159 8,446 6,592 8,446 8,463 8,553 6,592 6,592 31 Farm 278 10,742 10,372 10,742 10,640 10,567 10,372 10,372 32 Federal Housing and Veterans Administration 4,920 5,047 5,479 5,047 5,177 5,268 5,330 5,479 33 1- to 4-family 2,254 2,386 2,551 2,386 2,447 2,531 2,452 2,551 34 Multifamily 2,666 2,661 2,928 2,661 2,730 2,737 2,878 2,928 35 Federal National Mortgage Association 98,282 97,895 %,649 97,895 95,140 94,064 94,884 %,649 36 1- to 4-family 91,966 90,718 89,666 90,718 88,106 87,013 87,901 89,666 37 Multifamily 6,316 7,177 6,983 7,177 7,034 7,051 6,983 6,983 38 Federal Land Banks 47,498 39,984 33,930 39,984 37,362 35,833 34,930 33,930 39 1- to 4-family 2,798 2,353 1,996 2,353 2,198 2,108 2,055 1,9% 40 Farm 44,700 37,631 31,934 37,631 35,164 33,725 32,875 31,934 41 Federal Home Loan Mortgage Corporation 14,022 11,564 12,910 11,564 12,940 12,597 12,940 12,910 42 1- to 4-family 11,881 10,010 11,580 10,010 11,774 11,172 11,570 11,580 43 Multifamily 2,141 1,554 1,330 1,554 1,166 1,425 1,370 1,330 44 Mortgage pools or trusts6 415,042 531,591 671,749 531,591 575,435 615,142 648,219 671,749 45 Government National Mortgage Association 212,145 262,697 319,360 262,697 281,116 293,246 308,9% 319,360 46 1- to 4-family 207,198 256,920 311,567 256,920 274,710 286,091 301,456 311,567 47 Multifamily 4,947 5,777 7,793 5,777 6,406 7,155 7,540 7,793 48 Federal Home Loan Mortgage Corporation 100,387 171,372 212,105 171,372 186,295 200,284 208,350 212,105 49 1- to 4-family 99,515 166,667 205,460 166,667 180,602 194,238 201,786 205,460 50 Multifamily 872 4,705 6,645 4,705 5,693 6,046 6,564 6,645 51 Federal National Mortgage Association 54,987 97,174 139,960 97,174 107,673 121,270 130,540 139,960 52 1- to 4-family 54,036 95,791 137,988 95,791 106,068 119,617 128,770 137,988 53 Multifamily 951 1,383 1,972 1,383 1,605 1,653 1,770 1,972 54 Farmers Home Administration5 47,523 348 324 348 351 342 333 324 55 1- to 4-family 22,186 142 139 142 154 149 144 139 56 Multifamily 6,675 0 0 0 0 0 0 0 57 Commercial 8,190 132 122 132 127 126 124 122 58 Farm 10,472 74 63 74 70 67 65 63 59 Individuals and others7 296,809 325,882 342,542 325,882 330,714 337,846 341,230 342,542 60 1- to 4-family 165,835 180,8% 180,837 180,8% 179,517 182,010 181,241 180,837 61 Multifamily 55,424 66,133 74,964 66,133 70,146 73,924 74,838 74,964 62 Commercial 49,207 54,845 64,309 54,845 57,866 59,110 62,542 64,309 63 Farm 26,343 24,008 22,432 24,008 23,185 22,802 22,609 22,432 1. Based on data from various institutional and governmental sources, with 5. FmHA-guaranteed securities sold to the Federal Financing Bank were some quarters estimated in part by the Federal Reserve. Multifamily debt refers reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4, to loans on structures of five or more units. because of accounting changes by the Farmers Home Administration. 2. Includes loans held by nondeposit trust companies but not bank trust 6. Outstanding principal balances of mortgage pools backing securities insured departments. or guaranteed by the agency indicated. 3. Includes savings banks and savings and loan associations. Beginning 1987:1, 7. Other holders include mortgage companies, real estate investment trusts, data reported by FSLIC-insured institutions include loans in process and other state and local credit agencies, state and local retirement funds, noninsured contra assets. pension funds, credit unions, and other U.S. agencies. 4. Assumed to be entirely 1- to 4-family loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic NonfinancialS tatistics • June 1988 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars 198V 1988 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998866rr 11998877rr June July Aug. Sept. Oct. Nov. Dec. Jan/ Feb. Amounts outstanding (end of period) 1 Total 571,833 613,022 587,878 593,513 598,190 602,977 606,926 608,728 613,022 619,258 624,563 By major holder 2 Commercial banks .... 262,139 281,564 269,711 272,287 273,879 276,805 278,855 279,550 281,564 284,753 287,424 3 Finance companies ... 133,698 140,072 135,595 136,414 137,663 138,395 139,236 138,928 140,072 141,695 142,946 4 Credit unions 76,191 81,065 78,271 79,124 79,816 80,351 80,672 80,923 81,065 81,662 82,011 5 Retailers3 39,660 42,782 40,896 41,144 41,381 41,632 42,012 42,291 42,782 42,926 43,080 6 Savings institutions ... 56,881 63,949 59,836 60,944 61,798 62,098 62,457 63,412 63,949 64,633 65,398 7 Gasoline companies ... 3,264 3,590 3,569 3,600 3,653 3,696 3,694 3,624 3,590 3,590 3,704 By major type of credit 8 Automobile 246,109 267,180 254,212 256,585 259,558 261,902 263,823 264,474 267,180 269,883 273,195 9 Commercial banks .. 100,907 108,438 104,187 104,859 105,661 106,685 107,414 107,727 108,438 109,298 111,020 10 Credit unions 38,413 43,474 40,080 40,836 41,515 42,118 42,612 43,071 43,474 43,959 44,312 11 Finance companies.. 92,350 98,026 94,586 95,132 96,287 96,809 97,261 96,733 98,026 99,147 100,123 12 Savings institutions . 14,439 17,242 15,359 15,758 16,095 16,290 16,536 16,943 17,242 17,479 17,739 13 Revolving 136,381 159,307 144,777 147,809 149,815 152,553 155,196 156,425 159,307 162,065 163,551 14 Commercial banks .. 86,757 98,808 90,913 93,025 94,142 96,083 97,416 97,378 98,808 100,879 101,543 15 Retailers 34,320 36,959 35,346 35,542 35,731 35,941 36,270 36,501 36,959 37,087 37,231 16 Gasoline companies. 3,264 3,590 3,569 3,600 3,653 3,696 3,694 3,624 3,590 3,590 3,704 17 Savings institutions . 8,366 13,279 10,675 10,956 11,194 11,333 11,922 12,636 13,279 13,601 13,946 18 Credit unions 3,674 6,671 4,274 4,686 5,095 5,500 5,894 6,286 6,671 6,908 7,127 19 Mobile home 26,883 25,957 26,810 26,966 26,879 26,845 26,698 26,604 25,957 25,926 25,869 20 Commercial banks .. 8,926 9,101 9,131 9,168 9,156 9,157 9,174 9,169 9,101 9,064 9,047 21 Finance companies.. 8,822 7,771 8,469 8,452 8,281 8,235 8,228 8,211 7,771 7,753 7,679 22 Savings institutions . 9,135 9,085 9,210 9,346 9,442 9,453 9,296 9,224 9,085 9,109 9,143 23 Other 162,460 160,578 162,079 162,153 161,938 161,677 161,209 161,225 160,578 161,384 161,948 24 Commercial banks .. 65,549 65,217 65,480 65,235 64,920 64,880 64,851 65,276 65,217 65,512 65,813 25 Finance companies.. 32,526 34,275 32,540 32,830 33,095 33,351 33,747 33,984 34,275 34,795 35,144 26 Credit unions 34,104 30,920 33,917 33,602 33,206 32,733 32,166 31,566 30,920 30,795 30,571 27 Retailers 5,340 5,823 5,550 5,602 5,650 5,691 5,742 5,790 5,823 5,839 5,849 28 Savings institutions . 24,941 24,343 24,592 24,884 25,067 25,022 24,703 24,609 24,343 24,444 24,571 Net change (during period) 29 Total 54,078 41,189 6,643 5,635 4,677 4,787 3,949 1,802 4,294 6,236 5,305 By major holder 30 Commercial banks 20,495 19,425 2,529 2,576 1,592 2,926 2,050 695 2,014 3,189 2,671 31 Finance companies2 22,670 6,374 1,220 819 1,249 732 841 -308 1,144 1,623 1,251 32 Credit unions 4,268 4,874 1,082 853 692 535 321 251 142 597 349 33 Retailers3 466 3,122 172 248 237 251 380 279 491 144 154 34 Savings institutions 7,223 7,068 1,622 1,108 854 300 359 955 537 684 765 35 Gasoline companies -1,044 326 18 31 53 43 -2 -70 -34 0 114 By major type of credit 36 Automobile 36,473 21,071 2,471 2,373 2,973 2,344 1,921 651 2,706 2,703 3,312 37 Commercial banks 8,178 7,531 493 672 802 1,024 729 313 711 860 1,722 38 Credit unions 2,388 5,061 656 756 679 603 494 459 403 485 353 39 Finance companies 22,823 5,676 907 546 1,155 522 452 -528 1,293 1,121 976 40 Savings institutions 3,084 2,803 415 399 337 195 246 407 299 237 260 41 Revolving 14,368 22,926 2,900 3,032 2,006 2,738 2,643 1,229 2,882 2,758 1,486 42 Commercial banks 11,150 12,051 2,038 2,112 1,117 1,941 1,333 -38 1,430 2,071 664 43 Retailers 47 2,639 134 196 189 210 329 231 458 128 144 44 Gasoline companies -1,044 326 18 31 53 43 -2 -70 -34 0 114 45 Savings institutions 2,078 4,913 569 281 238 139 589 714 643 322 345 46 Credit unions 2,137 2,997 141 412 409 405 394 392 385 237 219 47 Mobile home 49 -926 171 156 -87 -34 -147 -94 -647 -31 -57 48 Commercial banks -627 175 16 37 -12 1 17 -5 -68 -37 -17 49 Finance companies -472 -1,051 -14 -17 -171 -46 -7 -17 -440 -18 -74 50 Savings institutions 1,148 -50 169 136 96 11 -157 -72 -139 24 34 51 Other 3,188 -1,882 1,101 74 -215 -261 -468 16 -647 806 564 52 Commercial banks 1,794 -332 -18 -245 -315 -40 -29 425 -59 295 301 53 Finance companies 319 1,749 327 290 265 256 396 237 291 520 349 54 Credit unions -257 -3,184 285 -315 -3% -473 -567 -600 -646 -125 -224 55 Retailers 419 483 38 52 48 41 51 48 33 16 10 56 Savings institutions 913 -598 469 292 183 -45 -319 -94 -266 101 127 1. The Board's series cover most short- and intermediate-term credit extended 2. More detail for finance companies is available in the G. 20 statistical release. to individuals that is scheduled to be repaid (or has the option of repayment) in 3. Excludes 30-day charge credit heldby travel and entertainment companies. two or more installments. These data also appear in the Board's G.19 (421) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Installment Credit A41 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1987 1988 IItteemm 11998855 11998866 11998877 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks2 1 48-month new car3 12.91 11.33 10.45 10.37 n.a. n.a. 10.86 n.a. n.a. 10.72 2 24-month personal 15.94 14.82 14.22 14.22 n.a. n.a. 14.58 n.a. n.a. 14.46 3 120-month mobile home 14.96 13.99 13.38 13.24 n.a. n.a. 13.62 n.a. n.a. 13.45 4 Credit card 18.69 18.26 17.92 17.85 n.a. n.a. 17.82 n.a. n.a. 17.80 Auto finance companies 5 New car 11.98 9.44 10.73 9.63 8.71 10.31 12.24 12.23 12.19 12.26 6 Used car 17.59 15.95 14.60 14.53 14.58 14.76 14.90 14.97 14.56 14.75 OTHER TERMS4 Maturity (months) 7 New car 51.5 50.0 53.5 52.1 50.7 52.8 55.4 55.5 55.5 55.9 8 Used car 41.4 42.6 45.2 45.4 45.2 45.2 45.3 45.3 47.2 46.8 Loan-to-value ratio 9 New car 91 91 93 93 93 93 94 93 93 94 10 Used car 94 97 98 98 98 99 99 99 98 99 Amount financed (dollars) 11 New car 9,915 10,665 11,203 11,374 11,455 11,585 11,630 11,645 11,534 11,447 12 Used car 6,089 6,555 7,420 7,763 7,476 7,537 7,646 7,718 7,612 7,619 1. These data also appear in the Board's G.19 (421) release. For address, see 3. Before 1983 the maturity for new car loans was 36 months, and for mobile inside front cover. home loans was 84 months. 2. Data for midmonth of quarter only. 4. At auto finance companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic NonfinancialS tatistics • June 1988 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1984 1985 1986 1987 H2 HI H2 HI H2 HI H2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 550.2 753.9 854.8 831.7 685.2 790.4 722.7 986.8 679.1 984.4 653.7 716.8 By sector and instrument 2 U.S. government 186.6 198.8 223.6 215.0 141.4 207.2 204.8 242.5 207.2 222.8 150.7 132.0 J Treasury securities 186.7 199.0 223.7 214.7 142.3 207.3 204.9 242.5 207.4 222.0 151.7 132.9 4 Agency issues and mortgages -.1 -.2 -.1 .4 -.9 -.1 -.1 -.1 -.1 .9 -1.0 -.9 5 Private domestic nonfinancial sectors 363.6 555.1 631.1 616.7 543.9 583.3 518.0 744.3 471.8 761.6 503.0 584.7 6 Debt capital instruments 253.4 313.6 447.8 452.7 456.5 342.5 350.4 545.2 365.6 539.8 470.7 442.3 7 Tax-exempt obligations 53.7 50.4 136.4 30.8 31.3 67.0 67.0 205.8 -15.6 77.2 32.7 29.8 8 Corporate bonds 16.0 46.1 73.8 121.3 125.4 69.8 62.2 85.3 135.3 107.3 127.4 123.4 9 Mortgages 183.6 217.1 237.7 300.6 299.8 205.7 221.2 254.2 245.9 355.4 310.5 289.0 10 Home mortgages 117.5 129.7 151.9 201.2 212.6 119.9 139.2 164.7 163.9 238.6 226.9 198.3 11 Multifamily residential 14.2 25.1 29.2 33.1 23.8 22.4 25.0 33.4 31.3 34.9 29.8 17.8 12 Commercial 49.3 63.2 62.5 74.6 69.5 63.8 59.5 65.5 59.7 89.6 63.1 75.9 13 Farm 2.6 -.9 -6.0 -8.4 -6.1 -.4 -2.5 -9.5 -9.0 -7.7 -9.3 -2.9 14 Other debt instruments 110.2 241.5 183.3 164.0 87.4 240.8 167.5 199.1 106.3 221.7 32.3 142.5 15 Consumer credit 56.6 90.4 94.6 65.8 30.1 86.2 95.3 93.9 71.0 60.6 19.5 40.7 16 Bank loans n.e.c 23.2 67.1 38.6 66.5 14.2 63.0 21.0 56.2 12.2 120.8 -24.6 5533..11 17 Open market paper -.8 21.7 14.6 -9.3 2.3 16.8 14.4 14.8 -13.1 -5.5 4.5 ..11 18 Other 31.3 62.2 35.5 41.0 40.8 74.7 36.8 34.2 36.2 45.8 32.9 48.6 19 By borrowing sector 363.6 555.1 631.1 616.7 543.9 583.3 518.0 744.3 471.8 761.6 503.0 584.7 20 State and local governments 34.0 27.4 91.8 44.3 33.3 38.6 56.3 127.2 4.3 84.3 35.4 31.2 21 Households 188.2 234.6 293.4 281.1 245.6 234.2 259.8 327.1 233.0 329.3 240.4 250.7 22 Farm 4.1 -.1 -13.9 -15.1 -10.0 .4 -7.0 -20.8 -16.9 -13.3 -17.8 -2.2 23 Nonfarm noncorporate 77.0 97.0 93.1 116.2 102.5 92.2 85.7 100.5 96.7 135.6 100.7 104.2 24 Corporate 60.3 196.0 166.7 190.2 172.6 217.8 123.2 210.3 154.7 225.8 144.3 200.9 25 Foreign net borrowing in United States 17.3 8.3 1.2 9.0 3.1 -19.4 -5.8 8.2 21.5 -3.5 -7.4 13.5 26 Bonds 3.1 3.8 3.8 2.6 6.3 6.3 5.5 2.1 6.2 -1.1 -1.7 14.2 21 Bank loans n.e.c 3.6 -6.6 -2.8 -1.0 -3.9 -11.9 -5.8 .1 1.5 -3.5 -3.2 -4.6 28 Open market paper 6.5 6.2 6.2 11.5 2.1 -4.3 2.8 9.6 19.1 3.9 -5.3 9.5 29 U.S. government loans 4.1 5.0 -6.0 -4.0 -1.5 -9.6 -8.2 -3.7 -5.3 -2.7 2.7 -5.7 30 Total domestic plus foreign 567.5 762.2 856.0 840.7 688.3 771.0 716.9 995.0 700.5 980.9 646.4 730.3 Financial sectors 31 Total net borrowing by financial sectors 99.3 151.9 199.0 295.3 283.4 150.7 175.1 222.8 242.3 348.2 318.5 248.8 By instrument 32 U.S. government related 67.8 74.9 101.5 178.1 169.3 77.3 96.8 106.3 136.1 220.1 180.5 158.6 33 Sponsored credit agency securities 1.4 30.4 20.6 15.2 29.9 31.5 26.6 14.6 8.7 21.7 8.1 51.7 34 Mortgage pool securities 66.4 44.4 79.9 163.3 140.2 45.8 70.3 89.5 126.5 200.0 174.0 110066..99 3S 1.1 -.4 - 8 2 2 36 Private financial sectors 31.5 77.0 97.4 117.2 114.1 73.5 78.3 116.5 106.2 128.1 138.0 90.2 3/ Corporate bonds 17.4 36.2 48.6 69.0 62.0 41.5 48.9 48.3 72.1 66.0 79.5 44.6 38 Mortgages * .4 .1 .1 .3 .4 * .1 .6 -.5 .2 .4 39 Bank loans n.e.c -.1 .7 2.6 4.0 -1.1 .7 2.3 2.9 4.0 4.0 -4.7 2.6 40 Open market paper 21.3 24.1 32.0 24.2 28.4 16.0 14.6 49.4 15.1 33.4 49.4 7.4 41 Loans from Federal Home Loan Banks -7.0 15.7 14.2 19.8 24.4 14.9 12.5 15.9 14.4 25.2 1133..66 3355..22 By sector 42 Sponsored credit agencies 1.4 30.4 21.7 14.9 29.2 31.5 26.6 16.8 9.5 20.2 6.6 51.7 43 Mortgage pools 66.4 44.4 79.9 163.3 140.2 45.8 70.3 89.5 126.5 200.0 174.0 106.9 44 Private financial sectors 31.5 77.0 97.4 117.2 114.1 73.5 78.3 116.5 106.2 128.1 138.0 90.2 45 Commercial banks 5.0 7.3 -4.9 -3.6 8.5 -5.3 -4.7 -5.0 -2.7 -4.6 14.1 2.9 46 Bank affiliates 12.1 15.6 14.5 4.6 4.8 10.8 10.2 18.9 -1.7 10.9 11.5 -1.8 4/ Savings and loan associations -2.1 22.7 22.3 29.8 35.2 23.3 14.2 30.4 25.5 34.0 29.1 41.3 48 Finance companies 12.9 18.9 53.9 49.7 26.5 29.6 49.7 58.1 53.1 46.3 30.8 22.2 49 REITs -.1 .1 -.7 -.3 .9 .1 -.6 -.8 .6 -1.3 1.9 50 CMO Issuers 3.7 12.4 12.2 37.1 38.1 15.0 9.5 14.9 31.4 42.8 52.5 23.7 All sectors 51 Total net borrowing 666.8 914.1 1,054.9 1,136.0 971.7 921.8 892.1 1,217.8 942.8 1,329.1 964.9 979.1 52 U.S. government securities 254.4 273.8 324.2 393.5 311.5 284.5 301.7 346.6 342.5 444.5 332.8 290.6 53 State and local obligations 53.7 50.4 136.4 30.8 31.3 67.0 67.0 205.8 -15.6 77.2 32.7 29.8 54 Corporate and foreign bonds 36.5 86.1 126.1 192.9 193.7 117.6 116.6 135.7 213.6 172.1 205.2 182.2 55 Mortgages 183.6 217.4 237.7 300.7 300.1 206.0 221.2 254.2 246.5 354.9 310.8 289.5 56 Consumer credit 56.6 90.4 94.6 65.8 30.1 86.2 95.3 93.9 71.0 60.6 19.5 40.7 57 Bank loans n.e.c 26.7 61.1 38.3 69.5 9.3 51.8 17.5 59.2 17.7 121.3 -32.5 51.2 58 Open market paper 26.9 52.0 52.8 26.4 32.8 28.6 31.8 73.7 21.0 31.7 48.6 17.0 59 Other loans 28.4 82.9 44.8 56.5 63.0 80.0 41.1 48.6 46.1 66.8 47.8 78.1 External corporate equity funds raised in United States 60 Total new share issues 61.8 -36.4 19.9 91.6 -9.3 -24.9 3.0 36.7 100.8 82.3 84.5 -103.2 61 Mutual funds 27.2 29.3 85.7 163.3 64.5 32.2 64.2 107.1 155.5 171.1 147.2 -18.2 62 All other 34.6 -65.7 -65.8 -71.7 -73.8 -57.1 -61.2 -70.4 -54.7 -88.7 -62.7 -85.0 63 Nonfinancial corporations 28.3 -74.5 -81.5 -80.8 -76.5 -69.4 -75.5 -87.5 -68.7 -92.7 -70.0 -83.0 64 Financial corporations 2.6 7.8 12.0 8.3 5.1 8.8 11.2 12.8 7.5 9.1 5.4 4.8 65 Foreign shares purchased in United States 3.7 .9 3.7 .7 -2.4 3.5 3.1 4.3 6.6 -5.1 1.9 -6.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates. 1984 1985 1986 1987 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998833 11998844 11998855 11998866 11998877 H2 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 550.2 753.9 854.8 831.7 685.2 790.4 722.7 986.8 679.1 984.4 653.7 716.8 By public agencies and foreign 2 Total net advances 114.0 157.6 202.3 319.7 233.6 182.5 195.8 208.7 264.7 374.6 247.7 219.4 3 U.S. government securities 26.3 39.3 47.1 84.8 51.4 51.0 50.3 43.9 74.0 95.6 48.3 54.5 4 Residential mortgages 76.1 56.5 94.6 160.3 136.7 57.4 88.6 100.7 123.7 196.9 166.8 106.8 5 FHLB advances to savings and loans -7.0 15.7 14.2 19.8 24.4 14.9 12.5 15.9 14.4 25.2 13.6 35.2 6 Other loans and securities 18.6 46.2 46.3 54.7 21.0 59.2 44.4 48.2 52.6 56.9 19.0 22.9 Total advanced, by sector 7 U.S. government 9.7 17.1 16.8 9.5 -9.7 26.6 25.1 8.4 10.8 8.2 -9.3 -10.6 8 Sponsored credit agencies 69.8 74.3 101.5 177.3 166.0 75.2 96.4 106.7 128.2 226.5 168.1 164.4 9 Monetary authorities 10.9 8.4 21.6 30.2 8.6 4.8 27.5 15.8 13.2 47.2 10.8 6.5 10 Foreign 23.7 57.9 62.3 102.6 68.6 75.9 46.8 77.8 112.5 92.7 78.0 59.2 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 67.8 74.9 101.5 178.1 169.3 77.3 96.8 106.3 136.1 220.1 180.5 158.6 12 Foreign 17.3 8.3 1.2 9.0 3.1 -19.4 -5.8 8.2 21.5 -3.5 -7.4 13.5 Private domestic funds advanced 13 Total net advances 521.3 679.5 755.2 699.2 624.1 665.7 618.0 892.5 571.9 826.4 579.2 669.4 14 U.S. government securities 228.1 234.5 277.0 308.7 260.1 233.5 251.3 302.7 268.6 348.9 284.5 236.1 15 State and local obligations 53.7 50.4 136.4 30.8 31.3 67.0 67.0 205.8 -15.6 77.2 32.7 29.8 16 Corporate and foreign bonds 14.5 35.1 40.8 83.4 110.1 53.0 39.7 42.0 100.2 66.6 100.0 120.3 17 Residential mortgages 55.0 98.2 86.4 74.0 99.6 84.8 75.5 97.4 71.5 76.5 89.9 109.2 18 Other mortgages and loans 162.4 276.9 228.8 222.1 147.3 242.3 197.0 260.6 161.7 282.4 85.7 209.2 19 LESS: Federal Home Loan Bank advances -7.0 15.7 14.2 19.8 24.4 14.9 12.5 15.9 14.4 25.2 13.6 35.2 Private financial intermediation 20 Credit market funds advanced by private financial institutions 395.8 559.8 579.5 726.9 567.7 532.1 483.8 675.2 638.5 815.3 585.9 549.5 21 Commercial banking 144.3 168.9 186.3 194.7 127.5 145.5 143.3 229.4 117.2 272.3 103.1 151.8 22 Savings institutions 135.6 150.2 83.0 105.5 140.7 133.5 54.5 111.4 94.5 116.6 104.5 176.8 23 Insurance and pension funds 100.1 121.8 156.0 176.7 203.6 95.3 139.4 172.5 169.0 184.4 215.9 191.4 24 Other finance 15.8 118.9 154.2 249.9 95.9 157.8 146.5 161.9 257.9 241.9 162.4 29.4 25 Sources of funds 395.8 559.8 579.5 726.9 567.7 532.1 483.8 675.2 638.5 815.3 585.9 549.5 26 Private domestic deposits and RPs 215.4 316.9 213.2 271.4 128.3 353.5 191.4 235.0 252.2 290.6 55.2 199.2 27 Credit market borrowing 31.5 77.0 97.4 117.2 114.1 73.5 78.3 116.5 106.2 128.1 138.0 90.2 28 Other sources 148.9 165.9 268.9 338.3 325.3 105.1 214.1 323.6 280.1 396.5 392.7 260.0 29 Foreign funds 14.6 8.8 19.7 12.9 45.3 1.7 10.8 28.6 11.9 14.0 24.5 66.0 30 Treasury balances -5.3 4.0 10.3 1.7 5.0 10.8 13.9 6.6 -4.2 7.6 4.3 5.7 31 Insurance and pension reserves 109.7 118.6 141.0 152.8 207.8 74.6 118.6 163.4 136.6 168.9 217.7 197.9 32 Other, net 30.0 34.5 98.1 170.9 67.2 18.0 71.4 124.7 135.8 206.1 146.2 -9.6 Private domestic nonfinancial investors 33 Direct lending in credit markets 157.0 196.7 273.2 89.4 170.5 207.1 212.5 333.9 39.7 139.2 131.3 210.2 34 U.S. government securities 99.3 123.6 145.3 47.1 54.8 84.3 156.2 134.5 42.2 51.9 67.3 42.8 35 State and local obligations 40.3 30.4 47.6 -5.4 52.2 50.4 14.8 80.4 -67.6 56.8 19.5 84.8 36 Corporate and foreign bonds -11.6 5.2 11.8 34.7 50.2 36.9 15.4 8.2 68.8 .7 12.1 88.3 37 Open market paper 12.0 9.3 43.9 -4.8 5.3 3.0 3.5 84.2 -17.3 7.7 24.2 -13.5 38 Other 17.0 28.1 24.6 17.9 8.0 32.5 22.6 26.6 13.6 22.1 8.2 7.8 39 Deposits and currency 232.8 320.4 223.5 291.8 141.1 354.0 198.3 248.7 261.9 321.6 40.3 239.8 40 Currency 14.3 8.6 12.4 14.4 15.6 3.6 15.9 8.8 10.7 18.2 9.6 21.6 41 Checkable deposits 28.8 28.0 41.5 100.1 -9.3 29.9 13.8 69.2 82.5 117.8 -21.5 2.8 42 Small time and savings accounts 215.4 150.7 138.6 120.8 69.3 169.9 162.1 115.1 112.6 129.0 52.1 86.5 43 Money market fund shares -39.0 49.0 8.9 43.8 22.3 73.4 10.6 7.1 46.9 40.6 -3.1 47.6 44 Large time deposits -8.3 84.3 7.6 -11.6 18.2 79.1 -7.3 22.5 .2 -23.3 5.0 29.3 45 Security RPs 18.5 5.0 16.6 18.3 27.9 1.2 12.2 21.1 10.0 26.5 22.7 33.0 46 Deposits in foreign countries 3.1 -5.1 -2.1 5.9 -2.8 -3.1 -9.0 4.9 -.9 12.8 -24.5 19.0 47 Total of credit market instruments, deposits, and currency 389.9 517.1 496.7 381.2 311.6 561.1 410.7 582.6 301.6 460.9 171.6 450.1 48 Public holdings as percent of total 20.1 20.7 23.6 38.0 33.9 23.7 27.3 21.0 37.8 38.2 38.3 30.0 49 Private financial intermediation (in percent) 75.9 82.4 76.7 104.0 91.0 79.9 78.3 75.6 111.6 98.7 101.2 82.1 50 Total foreign funds 38.2 66.7 82.0 115.5 113.9 77.6 57.7 106.4 124.4 106.7 102.6 125.2 MEMO: Corporate equities not included above 51 Total net issues 61.8 -36.4 19.9 91.6 -9.3 -24.9 3.0 36.7 100.8 82.3 84.5 -103.2 52 Mutual fund shares 27.2 29.3 85.7 163.3 64.5 32.2 64.2 107.1 155.5 171.1 147.2 -18.2 53 Other equities 34.6 -65.7 -65.8 -71.7 -73.8 -57.1 -61.2 -70.4 -54.7 -88.7 -62.7 -85.0 54 Acquisitions by financial institutions 51.1 19.7 43.4 50.6 45.9 39.7 59.5 27.3 46.5 54.6 72.6 19.2 55 Other net purchases 10.7 -56.1 -22.9 41.0 -55.2 -64.6 -55.8 9.5 54.3 27.7 11.9 -122.4 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also sum of lines 28 and 47 less lines 40 and 46. 48. Line 2/line 1. 18. Includes farm and commercial mortgages. 49. Line 20/line 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • June 1988 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1987 1988 MMeeaassuurree 11998855 11998866 11998877 July Aug. Sept. Oct. Nov. Dec. Jan.' Feb.' Mar. 1 Industrial production 123.7'' 125.1' 129.8 130.6 131.2 131.0 132.5 133.2 133.9' 134.4 134.4 134.6 Market groupings 2 Products, total 130.6' 133.3' 138.3 139.5 139.9 139.4 140.9 141.0 141.3' 142.8 143.2 143.3 3 Final, total 131.C 132.5' 136.8 137.9 138.4 137.8 139.3 139.2 139.8' 141.1 141.6 141.9 4 Consumer goods 119.8' 124.0' 127.7 128.9 129.4 127.7 129.0 129.4 129.8' 131.4 131.9 131.9 5 Equipment 145.8' 143.6' 148.8 149.7 150.2 151.2 153.0 152.2 153.1' 154.0 154.4 155.2 6 Intermediate 129.3' 136.2' 143.5 145.0 145.3 144.9 146.1 147.3 146.5' 148.5 148.8 148.3 7 Materials 114.3' 113.8' 118.2 118.5 119.4 119.7 121.2 122.5 123.7' 123.0 122.4 122.6 Industry groupings 8 Manufacturing 126.4' 129.1' 134.6 135.6 135.9 135.7 137.3 137.9 138.9' 139.5 139.5 139.8 Capacity utilization (percent)2 9 Manufacturing 80.1 79.8 81.0 81.5 81.5 81.3 82.0 82.2 82.5 82.8 82.6 82.5 10 Industrial materials industries 80.2 78.5 80.5 80.6 81.1 81.2 82.1 82.9 83.7 83.0 82.4 82.4 11 Construction contracts (1982 = 100)3 136.0 158.0 162.0 165.0 174.0 160.0 164.0 157.0 157.0 145.0 159.0 154.0 12 Nonagricultural employment, total4 118.3 120.8 123.8 123.8 124.0 124.2 124.9 125.2 125.6 125.9 126.5 126.8 13 Goods-producing, total 102.4 102.4 102.2 102.1 102.2 102.4 103.0 103.4 103.8 103.5 104.1 104.4 14 Manufacturing, total 97.8 96.5 97.1 97.0 97.2 97.4 97.8 98.2 98.5 98.5 98.6 98.6 15 Manufacturing, production-worker 92.6 91.2 92.1 92.1 92.2 92.5 92.9 93.3 93.6 93.7 93.9 93.9 16 Service-producing 125.0 128.9 132.9 132.9 133.1 133.4 134.1 134.4 134.8 135.3 135.9 136.2 17 Personal income, total 207.0 219.9 233.1 232.6 233.9 235.3 239.8 238.8 240.7 240.9 242.3 244.1 18 Wages and salary disbursements 198.7 210.2 222.6 222.3 224.2 225.4 227.1 228.6 229.5 230.7 232.1 233.3 19 Manufacturing 172.8 176.4 181.5 180.1 182.0 183.7 184.7 185.7 186.0 186.6 186.6 189.1 20 Disposable personal income 206.0 219.1 230.7 230.4 231.6 232.9 237.8 236.4 238.1 239.0 240.9 242.2 21 Retail sales 190.6 199.9 208.7 211.2 215.7 212.2 210.5 211.2 213.5 213.7 215.1 216.9 Prices7 22 Consumer (1982 = 100) 107.6 109.6 113.6 113.8 114.4 115.0 115.3 115.4 115.4 115.7 116.0 116.5 23 Producer finished goods (1982 = 100) ... 104.7 103.2 105.4 106.0 105.9 105.7 106.3 106.2 105.7 106.2 105.9 106.2 1. A major revision of the industrial production index and the capacity 5. Based on data in Survey of Current Business (U.S. Department of Comutilization rates was released in July 1985. See "A Revision of the Index of merce). Industrial Production" and accompanying tables that contain revised indexes 6. Based on Bureau of Census data published in Survey of Current Business. (1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 1. Data without seasonal adjustment, as published in Monthly Labor Review. (July 1985), pp. 487-501. The revised indexes for January through June 1985 were Seasonally adjusted data for changes in the price indexes may be obtained from shown in the September BULLETIN. the Bureau of Labor Statistics, U.S. Department of Labor. 2. Ratios of indexes of production to indexes of capacity. Based on data from Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources. NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6, 3. Index of dollar value of total construction contracts, including residential, and indexes for series mentioned in notes 3 and 7 may also be found in the Survey nonresidential and heavy engineering, from McGraw-Hill Information Systems of Current Business. Company, F. W. Dodge Division. Figures for industrial production for the last two months are preliminary and 4. Based on data in Employment and Earnings (U.S. Department of Labor). estimated, respectively. Series covers employees only, excluding personnel in the Armed Forces. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1987 1988 CCaatteeggoorryy 11998855 11998866 11998877 Aug. Sept. Oct. Nov. Dec. Jan/ Feb/ Mar. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 180,440 182,822 185,010 185,264 185,428 185,575 185,737 185,882 186,083 186,219 186,361 2 Labor force (including Armed Forces)1 117,695 120,078 122,122 122,568 122,230 122,651 122,861 122,984 123,436 123,598 123,153 3 Civilian labor force 115,461 117,834 119,865 120,306 119,963 120,387 120,594 120,722 121,175 121,348 120,903 Employment 4 Nonagricultural industries 103,971 106,434 109,232 109,907 109,688 109,961 110,332 110,529 110,836 111,182 110,899 5 Agriculture 3,179 3,163 3,208 3,143 3,184 3,249 3,172 3,215 3,293 3,228 3,204 Unemployment 6 Number 8,312 8,237 7,425 7,256 7,091 7,177 7,090 6,978 7,046 6,938 6,801 7 Rate (percent of civilian labor force).... 7.2 7.0 6.2 6.0 5.9 6.0 5.9 5.8 5.8 5.7 5.6 8 Not in labor force 62,745 62,744 62,888 62,696 63,198 62,924 62,876 62,898 62,647 62,621 63,208 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 97,519 99,610 102,105 102,275 102,434 102,983 103,285 103,612 103,827 104,344 104,606 10 Manufacturing 19,260 18,994 19,112 19,129 19,169 19,247 19,336 19,382 19,401 19,418 19,417 11 Mining 927 783 742 751 759 764 759 756 746 749 755 12 Contract construction 4,673 4,904 5,032 5,006 4,989 5,053 5,074 5,121 5,058 5,175 5,254 13 Transportation and public utilities 5,238 5,244 5,377 5,377 5,416 5,436 5,459 5,473 5,485 5,504 5,522 14 Trade 23,073 23,580 24,056 24,063 24,129 24,239 24,294 24,329 24,503 24,623 24,644 15 Finance 5,955 6,297 6,588 6,624 6,629 6,650 6,657 6,668 6,684 6,687 6,694 16 Service 22,000 23,099 24,136 24,279 24,295 24,406 24,493 24,612 24,683 24,884 24,967 17 Government 16,394 16,710 17,063 17,046 17,048 17,188 17,213 17,271 17,267 17,304 17,353 1. Persons 16 years of age and over. Monthly figures, which are based on 3. Data include all full- and part-time employees who worked during, or sample data, relate to the calendar week that contains the 12th day; annual data received pay for, the pay period that includes the 12th day of the month, and are averages of monthly figures. By definition, seasonality does not exist in exclude proprietors, self-employed persons, domestic servants, unpaid family population figures. Based on data from Employment and Earnings (U.S. Depart- workers, and members of the Armed Forces. Data are adjusted to the March 1984 ment of Labor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • June 1988 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1987 1988 1987 1988 1987 1988 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4' Q1 Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 128.2 130.9 133.0 134.5 160.4 161.3 162.2 163.1 79.9 81.2 82.1 82.4 2 Mining 99.0 100.6 103.2 102.5 129.7 129.0 128.4 127.7 76.3 78.0 81.2 80.1 3 Utilities 108.3 111.6 112.5 115.1 138.3 138.8 139.4 139.8 78.3 80.5 80.6 82.3 4 Manufacturing 133.2 135.7 137.9 139.6 165.6 166.7 167.7 168.9 80.5 81.4 82.3 82.6 5 Primary processing 116.1 119.2 122.1 122.7 139.0 139.8 140.6 141.6 83.5 85.3 86.9 86.7 b Advanced processing... 143.5 145.8 147.5 149.6 181.6 182.9 184.1 185.6 79.0 79.7 80.1 80.7 7 Materials 116.5 119.1 121.9 122.6 146.7 147.2 147.8 148.5 79.4 81.0 82.9 82.6 8 Durable goods 122.9 125.5 129.6 131.3 163.1 163.9 164.7 165.7 75.4 76.7 79.1 79.2 9 Metal materials 77.0 83.6 91.1 86.6 110.0 109.4 108.8 108.8 70.0 76.5 84.0 79.6 10 Nondurable goods 124.0 128.2 129.3 130.3 143.8 144.7 145.6 146.8 86.2 88.6 89.3 88.7 11 Textile, paper, and chemical.. 125.1 130.5 132.3 133.1 143.4 144.4 145.4 146.7 87.2 90.4 91.5 90.7 17 137.7 144.5 143.9 145.1 95 7 99 6r 99 2 13 125.3 130.7 149.8 150.9 83 6 86 3' 89 1 14 Energy materials 98.7 100.0 101.8 100.9 120.2 120.1 119.9 119.7 82.1 83.3 85.2 84.3 Previous cycle2 Latest cycle3 1987 1987 1988 High Low High Low Mar. July Aug. Sept. Oct. Nov. Dec. Jan/ Feb/ Mar. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 79.7 81.1 81.4 81.1 81.9 82.1 82.4 82.6 82.4 82.3 16 Mining 92.8 87.8 95.2 76.9 75.5 76.8 78.2 79.1 80.6 81.5 81.5 80.4 79.8 80.3 17 Utilities 95.6 82.9 88.5 78.0 78.2 80.2 81.3 80.0 80.5 81.2 80.4 82.4 82.8 81.8 18 Manufacturing 87.7 69.9 86.5 68.0 80.3 81.5 81.5 81.3 82.0 82.2 82.5 82.8 82.6 82.5 19 Primary processing 91.9 68.3 89.1 65.1 83.1 85.4 85.3 85.1 86.2 87.0 87.8 87.2 86.5 86.3 20 Advanced processing.. 86.0 71.1 85.1 69.5 79.1 79.8 79.9 79.5 80.1 80.0 80.1 80.7 80.7 80.6 21 Materials 92.0 70.5 89.1 68.5 78.7 80.6 81.1 81.2 82.1 82.9 83.7 83.0 82.4 82.4 22 Durable goods 91.8 64.4 89.8 60.9 75.2 76.5 76.6 77.0 78.3 79.0 80.2 79.6 79.0 79.1 23 Metal materials 99.2 67.1 93.6 45.7 68.7 73.9 77.5 78.3 82.4 83.3 87.6 80.1 79.1 79.6 24 Nondurable goods 91.1 66.7 88.1 70.7 84.8 88.4 88.6 88.7 88.2 89.0 90.5 89.1 88.5 88.5 25 Textile, paper, and chemical 92.8 64.8 89.4 68.8 85.8 90.0 90.5 90.7 90.4 91.0 92.7 91.2 90.4 90.5 76 98.4 70.6 97.3 79.9 94.6 100.5 99.9 98.5 97.4 98.7 101.6 100.5 98 2 77 92.5 64.4 87.9 63.5 8822..22 85.1 86.4 87.4 88.0 88.6 90.8 88 6 88 3 28 Energy materials 94.6 86.9 94.0 82.3 8800..88 82.4 84.0 83.5 84.9 85.7 85.1 84.7 84.1 84.0 1. These data also appear in the Board's G.3 (402) release. For address, see 2. Monthly high 1973; monthly low 1975. inside front cover. 3. Monthly highs 1978 through 1980; monthly lows 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted 1977 1987 1988 1987 GGrroouuppss por- aavvgg.. tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec/ Jan. FFeebb.."" MMaarr..'' Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 129.8 127.3 127.4 128.4 129.1 130.6 131.2 131.0 132.5 133.2 133.9 134.4 134.4 134.6 ? 57.72 138.3 136.2 137.2 137.2 137.8 139.5 139.9 139.4 140.9 141.0 141.3 142.8 143.2 143.3 3 44.77 136.8 135.0 134.5 135.8 136.2 137.9 138.4 137.8 139.3 139.2 139.8 141.1 141.6 141.9 4 25.52 127.7 127.5 126.6 128.2 127.2 128.9 129.4 127.7 129.0 129.4 129.8 131.4 131.9 131.9 5 19.25 148.8 145.0 144.9 145.8 148.1 149.7 150.2 151.2 153.0 152.2 153.1 154.0 154.4 155.2 6 Intermediate products 12.94 143.4 140.4 139.9 142.1 143.3 145.0 145.3 144.9 146.1 147.3 146.5 148.5 148.8 148.3 7 Materials 42.28 118.2 115.2 116.2 116.3 117.2 118.5 119.4 119.7 121.2 122.5 123.7 123.0 122.4 122.6 8 Durable consumer goods 6.89 120.2 121.2 118.1 120.2 117.4 120.4 121.2 118.6 124.3 123.9 120.3 112211..55 112211..22 112222..00 9 Automotive products 2.98 118.5 121.2 115.7 118.0 114.9 117.5 118.0 114.2 124.3 121.3 115.4 118.8 117.9 121.0 10 Autos and trucks 1.79 115.1 121.6 111.5 113.1 107.9 112.3 112.4 107.2 122.2 118.7 110.2 112.8 111.8 116.4 11 Autos, consumer 1.16 90.7 100.9 91.8 91.0 87.4 86.4 76.8 79.1 94.7 91.9 83.7 77.5 79.5 86.3 1? Trucks, consumer .63 160.5 159.9 148.1 154.2 146.0 160.4 178.4 159.4 173.2 168.5 159.5 178.3 171.6 N Auto parts and allied goods 1.19 123.5 120.5 121.9 125.3 125.4 125.3 126.6 124.8 127.5 125.2 123.3 127.8 127.2 112288^^00 14 3.91 121.6 121.2 119.9 121.8 119.3 122.5 123.6 121.9 124.3 125.8 123.9 123.7 123.8 122.7 IS Appliances, A/C and TV 1.24 141.5 142.9 137.7 142.2 133.4 141.7 147.1 141.8 145.7 150.1 142.7 141.7 142.1 141.0 16 Appliances and TV 1.19 142.1 143.8 139.2 142.3 133.4 142.6 145.5 140.6 146.1 150.5 142.6 140.4 143.1 17 Carpeting and furniture .96 130.7 131.3 133.5 133.3 132.3 134.1 132.0 131.6 132.9 133.5 133.9 134.1 132.7 18 Miscellaneous home goods 1.71 102.0 99.8 99.4 100.7 101.8 102.2 102.0 102.2 104.1 103.9 104.8 104.8 105.5 19 Nondurable consumer goods 18.63 130.5 129.8 129.8 131.1 130.9 132.1 132.5 131.0 130.8 131.5 133.3 135.0 135.8 135.5 70 15.29 137.3 136.5 136.4 137.7 137.6 138.9 139.2 137.8 137.4 138.3 140.7 142.6 143.6 143.3 71 Consumer foods and tobacco 7.80 136.2 134.8 134.4 135.6 136.0 137.2 137.4 137.0 137.5 137.3 139.2 140.5 141.2 ?? Nonfood staples 7.49 138.5 138.2 138.5 139.9 139.2 140.6 141.2 138.6 137.2 139.4 142.2 144.8 146.1 114466 JJ r\ Consumer chemical products 2.75 162.9 165.7 164.7 165.9 164.4 165.7 167.4 163.6 160.0 163.5 167.7 172.0 172.7 74 Consumer paper products 1.88 151.8 147.5 148.9 152.9 153.1 153.8 153.9 153.2 151.8 152.8 157.0 157.3 159.4 75 Consumer energy 2.86 106.3 105.8 106.5 106.4 105.9 108.0 107.7 105.0 105.8 107.4 108.0 110.6 111.8 76 Consumer fuel 1.44 93.1 94.1 94.5 92.1 91.9 92.7 91.4 91.6 92.4 93.2 95.4 95.4 97.0 27 Residential utilities 1.42 119.8 117.7 118.7 121.0 120.2 123.6 124.3 118.7 119.4 121.8 120.7 126.1 Equipment ?8 Business and defense equipment 18.01 153.6 150.1 150.0 150.8 153.2 154.4 154.5 155.2 157.2 156.6 157.8 158.9 159.3 160.0 79 Business equipment 14.34 144.5 140.8 140.8 141.7 144.2 145.6 145.6 146.3 148.7 148.3 149.8 150.9 151.4 152.4 30 Construction, mining, and farm 2.08 62.2 58.1 58.6 61.2 63.0 65.0 66.4 66.1 66.5 66.3 67.4 67.3 65.8 66.3 31 3.27 117.9 110.9 111.1 111.5 117.2 120.4 120.9 122.0 120.5 120.6 122.2 125.3 125.5 126.5 37 1.27 82.6 81.7 82.4 84.0 84.0 81.8 82.8 81.1 83.0 83.1 84.2 86.2 87.0 87.6 33 5.22 226.5 219.7 220.9 222.0 226.7 227.9 227.7 229.1 232.4 232.1 235.5 237.3 238.4 239.5 34 Transit 2.49 108.4 114.0 110.4 110.1 105.4 106.1 104.7 105.1 112.5 111.2 109.1 106.5 107.7 109.0 35 Defense and space equipment 3.67 188.9 186.6 186.1 186.5 188.6 188.7 189.1 189.8 190.3 188.7 188.9 190.1 190.3 189.8 Intermediate products 36 Construction supplies 5.95 131.5 128.5 127.3 128.3 131.5 133.1 132.5 132.3 133.3 134.2 113333..88 113366..99 113366..22 113344..44 37 Business supplies 6.99 153.5 150.5 150.5 153.8 153.4 155.2 156.3 155.6 157.1 158.4 157.4 158.4 159.6 38 General business supplies 5.67 158.6 155.2 155.5 158.2 158.5 160.5 161.0 160.9 162.3 164.3 163.3 163.9 165.3 39 Commercial energy products 1.31 131.1 130.3 129.0 135.0 131.1 132.3 135.8 132.7 134.6 132.9 131.8 134.8 134.8 40 Durable goods materials 20.50 125.0 121.8 122.2 121.6 124.0 125.2 125.5 126.4 128.7 130.2 132.0 131.6 113300..99 113311..33 41 4.92 100.9 98.9 96.2 95.2 99.2 98.5 99.6 99.0 102.3 103.1 104.6 104.8 104.0 104.3 4? 5.94 159.0 155.8 157.1 156.0 158.3 159.3 159.5 161.1 162.2 163.2 165.3 167.0 167.3 167.7 43 Durable materials n.e.c 9.64 116.4 112.6 114.1 113.9 115.5 117.7 117.9 118.9 121.6 123.6 125.5 123.5 122.3 122.7 44 Basic metal materials 4.64 86.7 80.8 81.8 81.9 83.6 86.6 90.4 91.3 95.3 96.5 100.0 92.9 91.5 91.8 45 Nondurable goods materials 10.09 125.8 122.8 125.4 125.3 124.1 127.6 128.3 128.6 128.2 129.6 132.5 130.4 130.0 130.3 4466 Textile, paper, and chemical 7.53 127.6 124.0 126.9 126.5 125.1 129.6 130.6 131.2 131.0 132.3 113355..66 113333..44 113322..66 113333..33 47 1.52 111.7 118.5 125.0 111.9 117.8 116.7 116.0 113.0 112.7 113.6 112.0 111.0 48 Pulp and paper materials 1.55 141.0 134.7 137.4 137.4 139.0 145.4 145.0 143.3 142.0 144.4 149.0 147.8 144.9 49 Chemical materials 4.46 128.4 122.1 125.0 125.0 124.9 128.1 130.4 132.2 133.4 134.7 138.4 135.4 135.5 50 Miscellaneous nondurable materials ... 2.57 120.4 119.2 121.1 122.0 120.9 122.0 121.4 120.9 119.7 121.7 123.3 121.9 51 11.69 99.8 97.0 97.5 99.3 99.4 99.0 100.9 100.2 101.8 102.8 101.7 101.5 100.7 100.5 5? 7.57 105.0 101.5 102.3 103.6 104.0 102.5 104.6 104.6 106.8 108.4 107.7 107.3 105.2 53 Converted fuel materials 4.12 90.3 88.9 88.7 91.4 91.0 92.5 94.1 92.2 92.7 92.6 90.7 90.7 92.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • June 1988 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1987 1988 Groups c S o I d C e a 1 v 98 g 7 . Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec/ Jan. Feb." Mar/ Index (1977. = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 104.3 101.9 101.4 103.1 103.0 103.7 105.4 105.4 106.8 107.9 107.3 107.5 107.1 106.9 2 Mining 9.83 100.7 98.3 98.6 99.2 99.2 99.2 100.9 101.9 103.6 104.6 104.6 102.9 101.9 102.3 3 Utilities 5.96 110.3 107.9 106.0 109.6 109.4 111.2 112.9 111.2 112.1 113.2 111.7 115.2 115.8 114.4 4 Manufacturing 84.21 134.6 132.4 132.4 133.2 134.0 135.6 135.9 135.7 137.3 137.9 138.9 139.5 139.5 139.8 5 Nondurable 35.11 136.7 133.7 134.6 135.7 136.9 138.5 138.8 138.6 138.1 139.6 141.3 141.9 141.8 141.9 6 Durable 49.10 133.1 131.5 130.9 131.4 132.0 133.5 133.8 133.7 136.8 136.7 137.3 137.7 137.9 138.3 Mining 1 Metal 10 .50 77.5 71.2 65.7 71.7 70.7 71.4 79.3 86.5 85.6 90.4 96.5 91.5 8 Coal 11.12 1.60 131.8 122.3 121.9 127.2 128.8 127.9 130.5 133.3 140.3 142.9 140.6 140.2 133.7 131.0 9 Oil and gas extraction 13 7.07 92.7 92.4 93.1 92.1 91.8 91.8 93.0 93.3 94.1 94.2 94.1 92.5 92.4 93.5 10 Stone and earth minerals 14 .66 128.2 123.8 125.4 127.6 128.5 130.7 130.3 130.0 131.0 134.1 135.6 132.2 133.4 Nondurable manufactures 11 Foods 20 7.96 137.7 137.3 136.0 137.4 137.7 138.5 138.8 139.5 138.0 138.9 140.1 141.2 142.0 12 Tobacco products 21 .62 103.4 101.1 99.6 106.6 107.0 110.4 101.7 103.7 106.5 110.5 107.0 13 Textile mill products 22 2.29 115.8 112.6 116.6 115.7 117.2 118.3 119.8 118.2 116.8 117.3 118.2 116.2 116.0 14 Apparel products 23 2.79 107.4 105.4 105.3 106.4 107.7 109.7 108.4 107.6 108.0 109.4 107.8 108.8 15 Paper and products 26 3.15 144.4 139.9 140.5 141.3 142.6 148.8 148.9 147.4 146.0 148.3 150.6 149.7 148.1 16 Printing and publishing 27 4.54 172.0 167.6 169.2 171.4 174.1 174.0 174.7 174.9 175.2 175.7 176.9 179.2 180.7 181.4 17 Chemicals and products 28 8.05 140.1 135.3 137.3 138.1 139.3 140.8 142.3 142.4 141.5 144.4 147.9 148.9 148.0 18 Petroleum products 29 2.40 93.5 92.1 94.0 92.6 92.3 94.1 92.9 93.5 94.6 93.3 96.1 96.3 96.6 97.8 19 Rubber and plastic products.... 30 2.80 163.6 158.6 160.5 162.2 165.4 167.2 164.8 165.2 166.7 169.9 170.6 170.3 170.7 20 Leather and products 31 .53 60.0 59.4 60.2 61.4 60.8 59.2 61.3 60.7 59.6 60.7 57.5 58.3 58.9 Durable manufactures 21 Lumber and products 24 2.30 130.3 128.9 127.8 130.3 131.1 132.8 131.1 126.9 129.8 134.0 133.6 136.1 135.5 22 Furniture and fixtures 25 1.27 152.8 149.9 148.2 150.5 153.9 156.2 155.2 155.9 156.0 158.5 159.4 157.4 156.1 23 Clay, glass, stone products 32 2.72 119.1 119.8 120.6 117.2 117.9 118.8 116.5 118.6 118.9 120.5 120.1 120.2 120.8 24 Primary metals 33 5.33 81.5 77.0 76.1 77.0 78.8 81.4 85.1 84.5 90.6 90.2 90.6 86.6 85.6 85.9 25 Iron and steel 331.2 3.49 70.8 65.4 65.0 65.7 68.3 70.9 76.0 74.6 82.0 79.7 81.9 77.9 75.7 26 Fabricated metal products 34 6.46 111.0 110.5 109.9 108.5 111.1 111.1 110.1 111.1 113.5 113.6 115.8 117.2 117.9 118.2 27 Nonelectrical machinery 35 9.54 152.7 148.5 150.4 149.7 151.8 155.3 154.3 156.6 158.0 157.2 161.0 162.5 162.7 164.0 28 Electrical machinery 36 7.15 172.3 168.5 168.4 171.1 170.5 172.5 174.3 173.4 175.5 175.6 175.9 177.0 177.8 177.9 29 Transportation equipment 37 9.13 129.2 132.2 127.8 129.4 126.5 127.6 128.1 125.5 132.0 130.4 128.1 128.6 128.4 129.9 30 Motor vehicles and parts 371 5.25 111.8 116.5 109.8 112.0 107.4 109.4 109.1 105.6 116.0 114.0 110.2 109.7 109.1 112.8 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 152.8 153.4 152.3 153.1 152.4 152.3 153.9 152.5 153.7 152.7 152.4 154.2 154.6 153.2 32 Instruments 38 2.66 143.9 140.3 142.8 142.1 144.5 143.8 146.3 145.6 146.7 147.8 145.5 148.7 149.3 149.1 33 Miscellaneous manufactures.... 39 1.46 102.6 103.9 101.4 101.9 101.2 100.5 102.2 102.1 104.6 104.5 105.6 104.0 105.0 Utilities 34 Electric 4.17 126.6 123.6 122.3 112288..88 112288..88 113311..00 113322..00 112277..55 112266..88 112277..55 112255..66 113300..33 113311..22 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,735.8 1.725.2 1,710.0 1,723.0 1,720.4 1.732.5 1,741.7 1,735.9 1,774.1 1,772.4 1,778.8 1,791.6 1,793.6 1803.9 36 Final 405.7 1,333.8 1.330.3 1,316.5 1,324.7 1,320.1 1.326.6 1,334.9 1,330.3 1,360.9 1,359.9 1,359.4 1,375.8 1,381.2 1388.8 37 Consumer goods. 272.7 866.0 868.1 857.1 862.8 855.1 863.2 866.4 856.9 876.6 879.8 881.2 894.4 896.5 899.6 38 Equipment 133.0 467.8 462.2 459.4 461.9 465.0 463.5 468.5 473.4 484.4 480.1 478.2 481.5 484.7 489.2 39 Intermediate 111.9 402.0 394.9 393.6 398.4 400.3 405.9 406.8 405.6 413.2 412.5 419.4 415.7 412.4 415.0 1. These data also appear in the Board's G.12.3 (414) release. For address, see Industrial Production" and accompanying tables that contain revised indexes inside front cover. (1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 A major revision of the industrial production index and the capacity (July 1985), pp. 487-501. The revised indexes for January through June 1985 were utilization rates was released in July 1985. See "A Revision of the Index of shown in the September BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1987 1988 IItteemm 11998855 11998866 11998877 May June July Aug. Sept. Oct. Nov. Dec.' Jan.' Feb. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,733 1,750 1,524 1,493 1,517 1,487 1,502 1,502 1,463 1,469 1,361 1,257 1,422 2 1-family 957 1,071 1,030 1,009 1,039 993 1,023 992 977 983 974 920 1,003 3 2-or-more-family 111 679 495 484 478 494 479 510 486 486 387 337 419 4 Started 1,742 1,805 1,621 1,599 1,583 1,594 1,583 1,679 1,538 1,661 1,399 1,382 1,514 1-family 1,072 1,179 1,146 1,125 1,086 1,142 1,109 1,211 1,105 1,129 1,035 1,016 1,106 6 2-or-more-family 669 626 474 474 497 452 474 468 433 532 364 366 408 7 Under construction, end of period1 . 1,063 1,074 987' 1,069 1,060 1,052 1,044 1,046 1,044 1,042 1,016 1,007 986 8 1-family 539 583 591' 626 622 621 621 627 627 625 618 615 602 9 2-or-more-family 524 490 397' 443 438 431 423 419 417 417 398 392 384 10 Completed 1,703 1,756 l^ 1,687 1,612 1,680 1,633 1,591 1,565 1,571 1,624 1,532 1,425 11 1-family 1,072 1,120 1,123' 1,178 1,111 1,112 1,069 1,100 1,114 1,088 1,104 1,086 1,016 12 2-or-more-family 631 637 546' 509 501 568 564 491 451 483 520 446 409 13 Mobile homes shipped 284 244 233 224 234 243 234 240 234 222 227 200 208 Merchant builder activity in 1-family units 14 Number sold 688 748 672 649 640 672 673 644 653 625 582 522 628 15 Number for sale, end of period 350 361 370 356 359 359 361 361 360 362 365 369 365 Price (thousands of dollars j1 Median 16 Units sold 84.3 92.2 104.5 104.9 109.0 105.0 106.8 106.5 106.5 117.0 110.0 118.0 110.8 17 Units sold 101.0 112.2 127.9 126.6 135.8 128.6 128.5 133.5 125.8 139.2 135.5 145.7 139.0 EXISTING UNITS (1-family) 18 Number sold 3,217 3,566 3,530 3,740 3,580 3,470 3,410 3,430 3,470 3,370 3,330 3,170 3,250 Price of units sold (thousands of dollars) 19 Median 75.4 80.3 85.6 86.0 85.9 88.3 86.5 85.5 84.6 85.0 85.4 87.4 88.1 20 Average 90.6 98.3 106.2 107.5 107.1 109.8 107.0 106.9 106.1 106.6 107.1 108.7 110.4 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 355,995 388,815 398,189' 396,680 397,191 398,465 402,872 402,782 398,930' 403,963r 403,884 392,525 391,474 22 Private 291,665 316,589 322,948' 321,414 324,256 323,847 329,831 324,857 322,213' 327,020' 326,272 318,094 316,777 23 Residential 158,475 187,147 190,508' 195,871 200,864 198,005 200,241 196,969 194,521' 193,731' 194,535 190,126 188,091 24 Nonresidential, total 133,190 129,442 132,440' 125,543 123,392 125,842 129,590 127,888 127,692' 133,289' 131,737 127,968 128,686 Buildings 25 Industrial 15,769 13,747 13,095 13,376 13,023 13,005 13,659 14,387 13,536' 14,336' 13,579 13,248 13,510 26 Commercial 59,629 56,762 53,201 53,224 51,831 52,537 54,055 52,800 53,912' 57,683' 54,982 54,257 53,550 27 Other 12,619 13,216 15,254 14,926 14,769 15,317 14,888 15,079 15,593' 16,158' 17,321 16,510 18,846 28 Public utilities and other 45,173' 45,717' 44,728 44,017 43,769 44,983 46,988 45,622 44,651' 45,112' 45,855 43,953 42,780 29 Public 64,326 72,225 75,239' 75,266 72,935 74,618 73,041 77,924 76,716' 76,943' 77,613 74,431 74,696 30 Military 3,283 3,919 4,204 4,397 4,352 5,009 4,193 6,083 4,308 4,738 3,164 4,634 4,411 31 Highway 21,756 23,360 23,248 22,607 21,704 22,441 22,005 23,489 24,993' 24,713 25,792 24,605 24,744 32 Conservation and development... 4,746 4,668 5,142' 4,839 5,498 5,328 5,127 4,978 5,445' 4,725' 5,565 3,983 3,844 33 Other 34,541 40,278 42,645 43,423 41,381 41,840 41,716 43,374 41,970' 42,767' 43,092 41,209 41,697 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (1) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices comparable with data in prior periods because of changes by the Bureau of the of existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from the originating agency. Permit Construction Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • June 1988 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier months earlier (at annual rate) Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm MMMaaarrr... 1987 1988 1987 1988 111999888888 11998877 11998888 (((111999888222 MMaarr.. MMaarr.. === 111000000)))''' June Sept. Dec. Mar. Nov. Dec. Jan. Feb. Mar. CONSUMER PRICES2 1 All items 3.0 3.9 4.3 3.9 3.2 4.2 .3 .2 .3 .2 .5 116.5 2 4.7 3.0 5.8 2.1 2.8 1.4 .1 .4 .3 -.3 .3 115.9 3 Energy items -5.6 .8 6.6 6.0 -3.9 -4.9 .3 -.8 -.7 -.6 .0 86.5 4 All items less food and energy 4.0 4.4 3.8 3.8 4.4 5.4 .3 .2 .5 .2 .6 121.9 5 Commodities 2.4 3.5 3.7 2.9 2.5 4.7 .4 -.2 .4 .1 .7 114.6 6 Services 4.8 4.8 4.4 4.3 5.0 5.9 .2 .4 .6 .4 .5 126.1 PRODUCER PRICES 7 Finished goods 1.7 1.8 3.5 3.8 -2.6 3.1 .R .4 -.2 .6 106.2 8 Consumer foods 3.1 1.8 9.6 -1.8 -5.7 5.6 .R -1.3' 1.7 -1.1 .7 110.0 9 Consumer energy -10.5 -3.5 2.0 16.5 -12.5 -16.9 -.8 -1.6' -4.5 -.8 .9 58.1 10 Other consumer goods 2.9 3.4 1.8 4.6 1.4 5.7 .R .3 .6 .3 .4 117.0 11 Capital equipment 2.0 1.9 1.1 4.0 -.7 3.2 ,I .2 .2 .2 .4 113.2 12 Intermediate materials3 -.1 4.9 5.3 5.6 4.8 3.5 .4' .3' .3 .0 .6 104.8 13 Excluding energy 1.1 6.2 4.2 5.3 7.6 7.4 .5 .5 .9 .2 .7 112.8 Crude materials 14 Foods 2.3 7.6 25.2 -4.8 -5.2 17.2 -2.5'' .6' .9 2.3 .8 9999..77 15 Energy -4.0 -6.5 11.3 5.9 -15.7 -23.2 -.9' -1.6' -3.8 -.3 -2.4 6688..88 16 Other 2.6 24.3 27.2 39.4 16.9 14.8 .r .2' 1.3 .8 1.4 132.8 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A51 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1987 1988 AAccccoouunntt 11998855 11998866 11998877 QI Q2 Q3 Q4 QL GROSS NATIONAL PRODUCT 1 Total 4,010.3 4,235.0 4,488.5 4,377.7 4,445.1 4,524.0 4,607.4 4,660.9 By source 2 Personal consumption expenditures 2,629.4 2,799.8 2,967.8 2,893.8 2,943.7 3,011.3 3,022.6 3,068.7 3 Durable goods 368.7 402.4 413.7 396.1 409.0 436.8 413.0 425.7 4 Nondurable goods 913.1 939.4 982.9 969.9 982.1 986.4 993.1 993.9 5 Services 1,347.5 1,458.0 1,571.2 1,527.7 1,552.6 1,588.1 1,616.5 1,649.0 6 Gross private domestic investment 641.6 671.0 717.5 699.9 702.6 707.4 760.2 761.9 7 Fixed investment 631.6 655.2 671.5 648.2 662.3 684.5 690.8 704.9 8 Nonresidential 442.6 436.9 443.4 422.8 434.6 456.6 459.6 477.2 9 Structures 152.5 137.4 134.2 128.7 129.7 137.1 141.1 140.4 10 Producers' durable equipment 290.1 299.5 309.2 294.1 304.9 319.5 318.5 336.8 11 Residential structures 189.0 218.3 228.1 225.4 227.7 227.9 231.2 227.8 12 Change in business inventories 10.0 15.7 46.1 51.6 40.3 22.9 69.4 57.0 13 Nonfarm 13.6 16.8 36.2 48.7 27.3 11.1 57.5 37.7 14 Net exports of goods and services -79.2 -105.5 -119.6 -112.2 -118.4 -123.7 -124.3 -115.4 15 Exports 369.9 376.2 427.8 397.3 416.5 439.2 458.1 470.6 16 Imports 449.2 481.7 547.4 509.5 534.8 562.9 582.4 586.0 17 Government purchases of goods and services 818.6 869.7 922.8 896.2 917.1 929.0 948.8 945.6 18 Federal 353.9 366.2 379.4 366.9 379.6 382.1 388.9 376.8 19 State and local 464.7 503.5 543.4 529.3 537.6 546.9 559.9 568.9 By major type of product 20 Final sales, total 4,000.3 4,219.3 4,442.5 4,326.0 4.404.8 4,501.1 4,537.9 4,603.9 21 Goods 1,637.9 1,693.8 1,782.2 1,738.7 1,763.5 1,798.3 1,828.4 1,844.7 22 Durable 704.3 726.8 773.3 747.0 756.7 785.7 803.8 818.1 23 Nondurable 933.6 967.0 1,008.9 991.7 1,006.8 1,012.6 1,024.6 1,026.6 24 Services 1,969.2 2,116.2 2,271.2 2,212.0 2,252.2 2,289.3 2,331.5 2,375.9 25 Structures 403.1 425.0 435.0 426.9 429.4 436.4 447.5 440.2 26 Change in business inventories 10.0 15.7 46.1 51.6 40.3 22.9 69.4 57.0 27 Durable goods 7.3 4.8 25.3 35.2 22.1 -1.9 46.0 23.4 28 Nondurable goods 2.7 10.9 20.7 16.5 18.2 24.8 23.4 33.6 29 MEMO Total GNP in 1982 dollars 3,607.5 3,713.3 3,821.0 3,772.2 3,795.3 3,835.9 3,880.8 3,902.6 NATIONAL INCOME 30 Total 3,229.9 3,422.0 3,636.0' 3,548.3 3,593.3 3,659.0 3,743.5' n.a. 31 Compensation of employees 2,370.8 2,504.9 2,647.6 2,589.9 2,623.4 2,663.5 2,713.5 2,762.4 32 Wages and salaries 1,974.7 2,089.1 2,212.7 2,163.3 2,191.4 2,226.5 2,269.9 2,306.5 3.3 Government and government enterprises 372.3 394.8 421.4 412.2 418.1 424.5 430.9 439.1 34 Other 1,602.6 1,694.3 1,791.3 1,751.1 1,773.3 1,801.9 1,839.0 1,867.4 35 Supplement to wages and salaries 396.1 415.8 434.8 426.6 432.0 437.0 443.6 455.9 36 Employer contributions for social insurance 203.8 214.7 224.6 220.0 222.5 225.9 230.1 240.5 37 Other labor income 192.3 201.1 210.2 206.7 209.5 211.1 213.5 215.4 38 Proprietors' income1 257.3 289.8 327.4 320.9 323.1 322.7 342.7 336.7 39 Business and professional1 227.6 252.6 279.0 269.7 275.8 282.1 288.4 292.6 40 Farm1 29.7 37.2 48.4 51.3 47.3 40.6 54.3 44.1 41 Rental income of persons2 9.0 16.7 19.3 20.0 18.9 17.3 20.9 21.1 42 Corporate profits1 277.6 284.4 304.7' 294.0 296.8 314.9 313.0' n.a. 43 Profits before tax3 224.8 231.9 274. V 257.0 268.7 284.9 285.6' n.a. 44 Inventory valuation adjustment -.7 6.5 -17.5 -11.3 -20.0 -17.6 -21.3 -15.9 45 Capital consumption adjustment 53.5 46.0 48.2 48.2 48.0 47.7 48.7 45.9 46 Net interest 315.3 326.1 337.1 323.6 331.1 340.6 353.3 356.2 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • June 1988 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1987 1988 AAccccoouunntt 11998855 11998866 QL Q2 Q3 Q4 QL PERSONAL INCOME AND SAVING 1 Total personal income 3,327.0 3,534.3 3,746.5 3,662.0 3,708.6 3,761.0 3,854.4 3,897.2 2 Wage and salary disbursements 1,974.9 2,089.1 2,212.7 2,163.3 2,191.4 2,226.1 2,270.2 2,306.5 3 Commodity-producing industries 609.2 623.3 641.1 632.9 635.0 641.8 654.7 661.6 4 Manufacturing 460.9 470.5 484.0 477.2 479.0 485.1 494.7 499.8 5 Distributive industries 473.0 497.1 522.9 511.5 518.9 526.3 535.0 542.9 6 Service industries 520.4 573.9 627.3 606.7 619.3 633.9 649.3 662.9 7 Government and government enterprises 372.3 394.8 421.4 412.2 418.1 424.2 431.2 439.1 8 Other labor income 192.3 201.1 210.2 206.7 209.5 211.1 213.5 215.4 9 Proprietors' income1 257.3 289.8 327.4 320.9 323.1 322.7 342.7 336.7 10 Business and professional 227.6 252.6 279.0 269.7 275.8 282.1 288.4 292.6 11 Farm1 29.7 37.2 48.4 51.3 47.3 40.6 54.3 44.1 12 Rental income of persons 9.0 16.7 19.3 20.0 18.9 17.3 20.9 21.1 13 Dividends 76.3 81.2 87.5 84.5 86.3 88.7 90.5 92.1 14 Personal interest income 476.5 497.6 516.2 499.8 506.3 520.0 538.8 545.8 15 Transfer payments 489.7 518.3 543.1 533.7 541.5 545.8 551.4 569.0 16 Old-age survivors, disability, and health insurance benefits ... 253.4 269.2 282.8 278.0 282.3 284.4 286.5 297.8 17 LESS: Personal contributions for social insurance 148.9 159.6 169.9 166.7 168.4 170.7 173.6 189.4 18 EQUALS: Personal income 3,327.0 3,534.3 3,746.5 3,662.0 3,708.6 3,761.0 3,854.4 3,897.2 19 LESS: Personal tax and nontax payments 485.9 512.2 564.8 536.1 578.0 565.7 579.4 577.0 20 EQUALS: Disposable personal income 2,841.1 3,022.1 3,181.7 3,125.9 3,130.6 3,195.3 3,275.0 3,320.2 21 LESS: Personal outlays 2,714.1 2,891.5 3,062.7 2,987.5 3,037.4 3,106.5 3,119.3 3,167.1 22 EQUALS: Personal saving 127.1 130.6 119.0 138.4 93.2 88.8 155.7 153.1 MEMO Per capita (1982 dollars) 23 Gross national product 15,073.7 15,369.6 15,672.6 15,523.4 1155,,558866..44 1155,,771144..44 1155,,885599..44 1155,,990099..55 24 Personal consumption expenditures 9,830.2 10,142.8 10,242.8 10,188.9 10,215.6 10,326.5 10,235.4 10,306.5 25 Disposable personal income 10,622.0 10,947.0 10,980.0 11,008.0 10,865.0 10,958.0 11,090.0 11,151.0 26 Saving rate (percent) 4.5 4.3 3.7 4.4 3.0 2.8 4.8 4.6 GROSS SAVING 27 Gross saving 531.3 532.0 565.2' 554.3 551.3 559.3 595.Y n.a. 28 Gross private saving 664.2 679.8 672.6' 683.8 639.9 648.7 718.2' n.a. 29 Personal saving 127.1 130.6 119.0 138.4 93.2 88.8 155.7 153.1 30 Undistributed corporate profits 99.6 92.6 74.6r 75.6 70.1 76.8 75.7r n.a. 31 Corporate inventory valuation adjustment -.7 6.5 -17.5 -11.3 -20.0 -17.6 -21.3 -15.9 Capital consumption allowances 32 Corporate 269.1 282.8 296.2 291.8 229944..55 229977..88 330000..99 330044..44 33 Noncorporate 168.5 173.8 182.8 178.0 182.1 185.3 186.0 188.5 34 Government surplus, or deficit (-), national income and product accounts -132.9 -147.8 -107.4' -129.5 -88.6 -89.3 —122.3r n.a. -196.0 -204.7 -151.4' -170.5 -139.2 -135.8 -160.2r n.a. 36 State and local 63.1 56.8 44.V 41.0 50.6 46.5 37.9' n.a. 37 Gross investment 525.7 527.1 560.6 552.1 548.1 548.4 593.8 609.4 38 Gross private domestic 641.6 671.0 717.5 699.9 702.6 707.4 760.2 761.9 39 Net foreign -115.9 -143.9 -156.9 -147.7 -154.5 -159.0 -166.4 -152.6 40 Statistical discrepancy -5.6 -4.9 —4.6R -2.2 -3.1 -10.9 -2.1' -2.1 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 Item credits or debits Q4 Q1 Q2 Q3 Q4" 1 Balance on current account -116,394 -141,352 -160,682 -37,977 -36,909 -41,338 -43,442 -38,993 2 Not seasonally adjusted -36,398 -33,435 -42,028 -48,317 -36,902 3 Merchandise trade balance2 -I 22,148 -i44,339 -i59,201 -38,595 -38,920 -39,742 -40,365 -40,174 4 Merchandise exports 215,935 224,361 250,814 57,021 56,769 59,875 65,110 69,060 5 Merchandise imports -338,083 -368,700 -410,015 -95,616 -95,689 -99,617 -105,475 -109,234 6 Military transactions, net -3,338 -3,662 -2,078 -495 -37 29 -735 -1,335 7 Investment income, net3 25,398 20,844 14,483 4,492 5,513 1,589 294 7,088 8 Other service transactions, net -1,005 1,463 -418 759 -390 -150 289 -168 9 Remittances, pensions, and other transfers -4,079 -3,885 -3,526 -1,151 -989 -837 -833 -868 10 U.S. government grants (excluding military) -11,222 -11,772 -9,942 -2,987 -2,086 -2,227 -2,092 -3,536 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -2,831 -1,920 1,219 225 -177 355 816 12 Change in U.S. official reserve assets (increase, -) -3,858 312 9,150 132 1,956 3,419 32 3,743 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -897 -246 -509 -31 76 -171 -210 -205 15 Reserve position in International Monetary Fund 908 1,500 2,070 283 606 335 407 722 16 Foreign currencies -3,869 -942 7,590 -120 1,274 3,255 -165 3,226 17 Change in U.S. private assets abroad (increase, -)3 -24,711 -94,374 -74,166 -32,351 13,170 -18,320 -27,559 -41,457 18 Bank-reported claims -1,323 -59,039 -33,431 -31,800 25,686 -15,685 -20,107 -23,325 19 Nonbank-reported claims 1,361 -3,986 170 -1,163 2,603 -327 20 U.S. purchase of foreign securities, net -7,481 -3,302 -3,654 3,113 -1,345 384 -923 - i ,770 21 U.S. direct investments abroad, net3 -17,268 -28,047 -38,194 -3,834 -10,008 -5,622 -6,202 -16,362 22 Change in foreign official assets in the United States (increase, +) -1,140 34,698 44,289 1,003 13,953 10,070 363 19,904 23 U.S. Treasury securities -838 34,515 43,301 4,572 12,145 11,084 860 19,212 24 Other U.S. government obligations -301 -1,214 1,570 -117 -62 256 714 662 25 Other U.S. government liabilities 823 1,723 -3,227 -607 -1,381 -1,504 -377 35 26 Other U.S. liabilities reported by U.S. banks 645 554 3,705 -2,435 3,611 547 -211 -242 27 Other foreign official assets -1,469 -880 -1,060 -410 -360 -313 -624 237 28 Change in foreign private assets in the United States (increase, +)3 131,012 178,689 158,296 57,428 12,802 39,494 67,026 38,974 29 U.S. bank-reported liabilities 41,045 77,350 77,857 34,604 -13,614 14,823 44,358 32,290 30 U.S. nonbank-reported liabilities -450 -2,791 1,035 1,761 1,526 525 31 Foreign private purchases of U.S. Treasury securities, net 20,433 8,275 ' -6,088 -3,074 -1,570 -2,211 -2,855 548 32 Foreign purchases of other U.S. securities, net 50,962 70,802 42,134 12,269 18,499 15,870 12,693 -4,928 33 Foreign direct investments in the United States, net3 19,022 25,053 40,581 12,594 7,726 9,486 12,305 11,064 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 17,920 23,947 21,892 11,750 -5,197 6,852 3,226 17,013 36 Owing to seasonal adjustments 3,904 2,959 -1,700 -4,833 3,577 37 Statistical discrepancy in recorded data before seasonal adjustment 17,920 23,947 21,892 7,846 -8,156 8,552 8,059 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,858 312 9,150 132 1,956 3,419 32 3,743 39 Foreign official assets in the United States (increase, +) excluding line 25 -1,963 32,975 47,516 1,610 15,334 11,574 739 19,869 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) -6,709 -8,508 -10,006 -5,195 -2,901 -2,651 -1,721 -2,733 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 46 101 94 53 26 13 47 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Primarily associated with military sales contracts and other transactions 38-41. arranged with or through foreign officii agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing. Military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business 3. Includes reinvested earnings. (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • June 1988 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are not seasonally adjusted. 1987 1988 IItteemm 11998855 11998866 11998877 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 218,815 226,808 252,866 20,222 20,986 21,752 23,799 24,801 22,330 23,559 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses, c.i.f. value 352,463 382,964 424,082 35,905 35,062 39,383 37,016 37,003 34,767 37,387 3 Trade balance -133,648 -156,156 -171,217 -15,683 -14,076 -17,631 -13,218 -12,202 -12,437 -13,828 1. The Census basis data differ from merchandise trade data shown in table tions; military payments are excluded and shown separately as indicated above. 3.10, U.S. International Transactions Summary, for reasons of coverage and As of Jan. 1, 1987 census data are released 45 days after the end of the month. timing. On the export side, the largest adjustment is the exclusion of military sales Total exports and the trade balance reflect adjustments for undocumented exports (which are combined with other military transactions and reported separately in to Canada. the "service account" in table 3.10, line 6). On the import side, additions are made SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" for gold, ship purchases, imports of electricity from Canada, and other transac- (Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1987 1988 TTyyppee 11998844 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Total 34,934 43,186 48,511 45,070 46,200 46,779 45,798 42,955 43,064 43,186 2 Gold stock, including Exchange Stabilization Fund 11,096 11,090 11,064 11,075 11,085 11,082 11,078 11,068 11,063 11,063 3 Special drawing rights2,3 5,641 7,293 8,395 9,078 9,373 9,937 10,283 9,765 9,761 9,899 4 Reserve position in International Monetary Fund 11,541 11,947 11,730 10,918 11,157 11,369 11,349 10,804 10,445 ' 10,645 5 Foreign currencies4 6,656 12,856 17,322 13,999 14,585 14,391 13,088 11,318 11,795 11,579 1. Gold held under earmark at Federal Reserve Banks for foreign and interna- in the IMF also are valued on this basis beginning July 1974. tional accounts is not included in the gold stock of the United States; see table 3. Includes allocations by the International Monetary Fund of SDRs as follows: 3.13. Gold stock is valued at $42.22 per fine troy ounce. $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based million on Jan. 1, 1981; plus transactions in SDRs. on a weighted average of exchange rates for the currencies of member countries. 4. Valued at current market exchange rates. From July 1974 through December 1980, 16 currencies were used; from January 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1987 1988 AAsssseettss 11998844 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Deposits 267 480 287 456 236 351 244 355 343 534 Assets held in custody i 2 U.S. Treasury securities 118,000 121,004 155,835 179,097 182,072 187,767 195,126 206,675 215,308 175,554 3 Earmarked gold 14,242 14,245 14,048 14,015 13,998 13,965 13,919 13,882 13,824 13,773 1. Excludes deposits and U.S. Treasury securities held for international and 3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce, regional organizations. Earmarked gold is gold held for foreign and international accounts and is not 2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. included in the gold stock of the United States. Treasury securities payable in dollars and in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1987 1988 AAsssseett aaccccoouunntt 11998844 11998855 11998866 Aug. Sept. Oct. Nov. Dec. Jan. Feb." All foreign countries 1 Total, all currencies 453,656 458,012 456,628 473,540 490,367r 521,587' 525,696' 518,906' 503,500 495,107 2 Claims on United States 113,393 119,706 114,563 124,737 137,468' 138,221 140,439 138,132 131,376 131,062 Parent bank 78,109 87,201 83,492 89,958 101,885'' 99,450 102,814 105,943 95,482 94,348 4 Other banks in United States 13,664 13,057 13,685 14,739 15,949 17,826 16,701 16,416 14,910 15,396 5 Nonbanks 21,620 19,448 17,386 20,040 19,634 20,945 20,924 15,773 20,984 21,318 6 Claims on foreigners 320,162 315,676 312,955 314,727 319,761' 347,493' 346,66C 342,253' 333,957 326,181 7 Other branches of parent bank 95,184 91,399 96,281 97,988 103,281' 116,556' 116,509' 122,057 115,249 111,594 8 Banks 100,397 102,960 105,237 108,068 108,482' 118,240' 115,587' 108,843' 108,176 105,580 9 Public borrowers 23,343 23,478 23,706 21,537 21,592' 22,094' 22,303' 21,741' 21,280 21,243 10 Nonbank foreigners 101,238 97,839 87,731 87,134 86,406' 90,603' 92,261' 89,612' 89,252 87,764 11 Other assets 20,101 22,630 29,110 34,076 33,138' 35,873' 38,597' 38,521' 38,167 37,864 12 Total payable in U.S. dollars 350,636 336,520 317,487 322,286 340,917' 354,504' 353,024' 350,550' 335,606 331,067 n Claims on United States 111,426 116,638 110,620 118,964 131,934' 131,659 133,731 132,121 124,820 124,836 14 Parent bank 77,229 85,971 82,082 87,844 100,026' 97,257 100,123 103,349 92,393 91,271 15 Other banks in United States 13,500 12,454 12,830 12,830 13,942 15,627 14,632 14,657 13,439 13,886 16 Nonbanks 20,697 18,213 15,708 18,290 17,966 18,775 18,976 14,115 18,988 19,679 17 Claims on foreigners 228,600 210,129 195,063 189,958 195,086' 209,097 203,914 202,282 196,109 190,766 18 Other branches of parent bank 78,746 72,727 72,197 73,327 77,699 86,693 85,548 88,186 84,443 82,987 19 Banks 76,940 71,868 66,421 64,106 64,516' 68,931 65,771 63,706 61,384 58,175 70 Public borrowers 17,626 17,260 16,708 15,115 14,943 14,988 14,952 14,730 14,720 14,619 21 Nonbank foreigners 55,288 48,274 39,737 37,410 37,928 38,485 37,643 35,660 35,562 34,985 22 Other assets 10,610 9,753 11,804 13,364 13,897' 13,748' 15,379' 16,147' 14,677 15,465 United Kingdom 23 Total, all currencies 144,385 148,599 140,917 148,039 149,633 163,472 167,726 159,186 160,244 157,575 74 Claims on United States 27,675 33,157 24,599 31,377 32,581 33,904 35,406 32,518 32,464 32,869 7,5 Parent bank 21,862 26,970 19,085 25,627 27,128 27,710 29,553 27,350 26,923 27,484 26 Other banks in United States 1,429 1,106 1,612 1,585 1,349 1,870 1,694 1,259 1,558 1,535 71 Nonbanks 4,384 5,081 3,902 4,165 4,104 4,324 4,159 3,909 3,983 3,850 7.8 Claims on foreigners 111,828 110,217 109,508 108,293 108,562 120,079 121,473 115,700 118,407 115,430 29 Other branches of parent bank 37,953 31,576 33,422 30,794 33,334 37,402 39,138 39,903 39,702 38,077 30 Banks 37,443 39,250 39,468 40,082 38,390 42,929 41,649 36,735 39,697 38,654 31 Public borrowers 5,334 5,644 4,990 4,761 4,725 4,881 5,272 4,752 4,639 4,613 32 Nonbank foreigners 31,098 33,747 31,628 32,656 32,113 34,867 35,414 34,310 34,369 34,086 33 Other assets 4,882 5,225 6,810 8,369 8,490 9,489 10,847 10,968 9,373 9,276 34 Total payable in U.S. dollars 112,809 108,626 95,028 96,510 99,656 105,515 107,289 101,065 102,075 101,642 35 Claims on United States 26,868 32,092 23,193 29,519 30,791 31,820 33,409 30,439 30,083 30,971 36 Parent bank 21,495 26,568 18,526 24,853 26,423 26,850 28,685 26,304 25,781 26,565 37 Other banks in United States 1,363 1,005 1,475 1,309 1,105 1,504 1,408 1,044 1,132 1,273 38 Nonbanks 4,010 4,519 3,192 3,357 3,263 3,466 3,316 3,091 3,170 3,133 39 Claims on foreigners 82,945 73,475 68,138 63,265 64,561 69,276 68,864 64,560 67,458 66,313 40 Other branches of parent bank 33,607 26,011 26,361 23,155 25,600 27,810 29,166 28,635 29,336 29,813 41 Banks 26,805 26,139 23,251 22,646 21,522 22,941 21,833 19,188 20,814 19,516 47 Public borrowers 4,030 3,999 3,677 3,473 3,377 3,426 3,472 3,313 3,313 3,347 43 Nonbank foreigners 18,503 17,326 14,849 13,991 14,062 15,099 14,393 13,424 13,995 13,637 44 Other assets 2,996 3,059 3,697 3,726 4,304 4,419 5,016 6,066 4,534 4,358 Bahamas and Caymans 45 Total, all currencies 146,811 142,055 142,592 139,986 152,146 156,951 155,100 160,321 148,718 143,630 46 Claims on United States 77,296 74,864 78,048 72,558 81,913 83,383 82,366 85,318 79,893 78,015 47 Parent bank 49,449 50,553 54,575 45,697 53,902 53,289 52,759 60,048 51,249 48,402 48 Other banks in United States 11,544 11,204 11,156 12,111 13,538 14,721 13,980 14,277 12,472 13,042 49 Nonbanks 16,303 13,107 12,317 14,750 14,473 15,373 15,627 10,993 16,172 16,571 50 Claims on foreigners 65,598 63,882 60,005 62,336 65,622 68,713 67,658 70,162 63,469 60,111 51 Other branches of parent bank 17,661 19,042 17,296 18,228 18,698 18,936 18,905 21,277 19,777 18,460 57 Banks 30,246 28,192 27,476 29,160 31,692 35,014 33,479 33,751 29,365 27,705 53 Public borrowers 6,089 6,458 7,051 6,873 6,988 7,018 7,196 7,428 7,257 7,071 54 Nonbank foreigners 11,602 10,190 8,182 8,075 8,244 7,745 8,078 7,706 7,070 6,875 55 Other assets 3,917 3,309 4,539 5,092 4,611 4,855 5,076 4,841 5,356 5,504 56 Total payable in U.S. dollars 141,562 136,794 136,813 130,985 142,622 145,841 144,525 151,434 141,135 135,916 1. Beginning with June 1984 data, reported claims held by foreign branches from $50 million to $150 million equivalent in total assets, the threshold now have been reduced by an increase in the reporting threshold for "shell" branches applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • June 1988 3.14 Continued 1987 198 8 LLiiaabbiilliittyy aaccccoouunntt 11998866 Aug. Sept. Oct. Nov. Dec. Jan. Feb." All foreign countries 57 Total, all currencies 453,656 458,012 456,628 473,540 490,367' 521,587' 525,696' 518,906' 503,500 495,107 58 Negotiable CDs 37,725 34,607 31,629 33,648 35,724 36,796 34,690 30,929 29,272 31,153 59 To United States 147,583 156,281 152,465 141,913 153,877' 156,678' 156,118' 161,303' 150,621 149,380 60 Parent bank •. 78,739 84,657 83,394 74,906' 80,993' 80,215' 83,844' 87,634' 78,531 84,668 61 Other banks in United States 18,409 16,894 15,646 15,289 17,246 18,868 18,868 20,558 15,886 14,400 62 Nonbanks 50,435 54,730 53,425 51,718' 55,638' 57,595' 53,406' 53,111' 56,204 50,312 63 To foreigners 247,907 245,939 253,775 278,883 281,152' 307,087' 312,498' 304,707' 301,956 292,762 64 Other branches of parent bank 93,909 89,529 95,146 97,908 104,025' 114,825' 116,978' 124,563' 116,375 111,729 65 Banks 78,203 76,814 77,809 87,449 85,682' 98,097' 97,462' 87,23C 89,539 88,245 66 Official institutions 20,281 19,520 17,835 21,016 20,266' 20,370' 21,873' 19,564' 21,130 20,364 67 Nonbank foreigners 55,514 60,076 62,985 72,510 71,179' 73,795' 76,185' 73,35C 74,912 72,424 68 Other liabilities 20,441 21,185 18,759 19,096 19,614' 21,026' 22,390' 21,967' 21,651 21,812 69 Total payable in U.S. dollars 367,145 353,712 336,406 333,377 352,199' 365,735' 361,526' 361,283' 344,682 341,493 70 Negotiable CDs 35,227 31,063 28,466 29,634 30,933 32,117 30,075 26,768 24,785 26,290 71 To United States 143,571 150,905 144,483 132,907 143,812 145,382' 143,104' 148,359' 139,134 138,592 72 Parent bank 76,254 81,631 79,305 70,126' 75,702' 74,710' 77,729' 81,815' 73,009 78,917 73 Other banks in United States 17,935 16,264 14,609 14,086 15,829 17,313 17,194 19,154 14,518 13,081 74 Nonbanks 49,382 53,010 50,569 48,695' 52,281' 53,359' 48,181' 47,39C 51,607 46,594 75 To foreigners 178,260 163,583 156,806 163,427 169,564' 179,442' 179,44c 177,641' 172,215 167,460 76 Other branches of parent bank 77,770 71,078 71,181 72,620 78,096' 84,410' 84,572 90,431' 84,239 82,781 77 Banks 45,123 37,365 33,850 34,808 35,294' 40,144' 38,904' 35,034' 33,305 32,238 78 Official institutions 15,773 14,359 12,371 15,527 14,247' 13,405' 14,161 12,409" 12,736 12,071 79 Nonbank foreigners 39,594 40,781 39,404 40,472 41,927 41,483' 41,803' 39,767 41,935 40,370 80 Other liabilities 10,087 8,161 6,651 7,409 7,890' 8,794' 8,907' 8,515' 8,548 9,151 United Kingdom 81 Total, all currencies 144,385 148,599 140,917 148,039 149,633 163,472 167,726 159,186 160,244 157,575 82 Negotiable CDs 34,413 31,260 27,781 29,363 31,451 32,523 30,475 26,988 25,184 26,786 83 To United States 25,250 29,422 24,657 22,202 22,462 22,868 24,961 23,470 25,209 26,533 84 Parent bank 14,651 19,330 14,469 13,234 13,357 12,251 14,018 13,223 14,177 15,527 85 Other banks in United States 3,125 2,974 2,649 1,875 2,073 2,382 2,103 1,740 1,596 1,615 86 Nonbanks 7,474 7,118 7,539 7,093 7,032 8,235 8,840 8,507 9,436 9,391 87 To foreigners 77,424 78,525 79,498 87,745 86,813 98,215 101,686 98,689 100,001 94,084 88 Other branches of parent bank 21,631 23,389 25,036 23,379 26,094 29,718 30,727 33,078 33,344 30,350 89 Banks 30,436 28,581 30,877 34,414 31,681 38,502 37,690 34,290 34,820 33,520 90 Official institutions 10,154 9,676 6,836 9,670 10,387 10,248 12,000 11,015 11,571 11,048 91 Nonbank foreigners 15,203 16,879 16,749 20,282 18,651 19,747 21,269 20,306 20,266 19,166 92 Other liabilities 7,298 9,392 8,981 8,729 8,907 9,866 10,604 10,039 9,850 10,172 93 Total payable in U.S. dollars 117,497 112,697 99,707 99,163 102,202 108,440 108,481 102,550 105,138 105,162 94 Negotiable CDs 33,070 29,337 26,169 27,264 28,776 29,991 27,999 24,926 22,875 24,281 95 To United States 24,105 27,756 22,075 19,578 19,528 18,819 19,800 17,752 20,799 23,019 % Parent bank 14,339 18,956 14,021 12,608 12,609 11,283 12,792 12,026 13,307 14,626 97 Other banks in United States 2,980 2,826 2,325 1,694 1,883 2,080 1,789 1,512 1,398 1,401 98 Nonbanks 6,786 5,974 5,729 5,276 5,036 5,456 5,219 4,214 6,094 6,992 99 To foreigners 56,923 51,980 48,138 49,183 50,386 55,209 56,443 55,919 57,620 53,444 UN) Other branches of parent bank 18,294 18,493 17,951 15,565 17,994 20,018 20,826 22,334 22,870 21,753 101 Banks 18,356 14,344 15,203 15,471 14,359 17,786 17,024 15,580 16,119 14,401 102 Official institutions 8,871 7,661 4,934 7,872 8,060 7,115 7,970 7,530 7,993 7,045 103 Nonbank foreigners 11,402 11,482 10,050 10,275 9,973 10,290 10,623 10,475 10,638 10,245 104 Other liabilities 3,399 3,624 3,325 3,138 3,512 4,421 4,239 3,953 3,844 4,418 Bahamas and Caymans 105 Total, all currencies 146,811 142,055 142,592 139,986 152,146 156,951 155,100 160,321 148,718 143,630 106 Negotiable CDs 615 610 847 975 886 890 861 885 851 940 107 To United States 102,955 104,556 106,081 98,085 108,205 111,976 108,039 113,950 105,149 99,840 108 Parent bank 47,162 45,554 49,481 42,275' 47,165' 49,387' 50,065' 53,353' 46,729 49,032 109 Other banks in United States 13,938 12,778 11,715 12,276 13,5% 14,872 15,204 17,224 13,017 11,455 110 Nonbanks 41,855 46,224 44,885 43,534' 47,444' 47,717' 42,77C 43,373' 45,403 39,353 111 To foreigners 40,320 35,053 34,400 39,437 41,417 42,295 44,398 43,815 40,820 41,215 112 Other branches of parent bank 16,782 14,075 12,631 16,465 16,965 17,090 17,812 19,185' 18,627 18,585 113 Banks 12,405 10,669 8,617 9,514 10,435 11,589 12,611 10,769' 9,344 9,825 114 Official institutions 2,054 1,776 2,719 2,935 1,814 2,158 2,064 1,504 1,377 1,179 115 Nonbank foreigners 9,079 8,533 10,433 10,523 12,203 11,458 11,911 12,357 11,472 11,626 116 Other liabilities 2,921 1,836 1,264 1,489 1,638 1,790 1,802 1,671 1,898 1,635 117 Total payable in U.S. dollars 143,582 138,322 138,774 134,354 145,402 149,472 146,485 152,927 141,750 136,540 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A57 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1987 1988 IItteemm 11998855 11998866 Aug. Sept.' Oct. Nov. Dec. Jan. Feb." 1 Total1 178,380 211,834' 237,818' 239,689 252,551' 254,080' 259,635' 267,075 275,981 By type 2 Liabilities reported by banks in the United States'1 26,734 27,92C 29,728' 32,044 38,337' 34,259' 31,821 32,548 31,826 3 U.S. Treasury bills and certificates 53,252 75,650 78,210 7755,,770011 7788,,881199 8822,,554422 8888,,882299 9900,,663355 9933,,440077 U.S. Treasury bonds and notes 4 Marketable 77,154 91,368 115,101 116,442 118,909' 120,762' 122,556' 127,674 134,775 5 Nonmarketable4 3,550 1,300 300 300 300 300 300 300 300 6 U.S. securities other than U.S. Treasury securities 17,690 15,596 14,479 15,202 16,186 16,217 16,129 15,918 15,673 By area 7 Western Europe1 74,447 88,629' 106,863' 108,398 116,510' 117,628 124,609' 127,769 127,266 8 Canada 1,315 2,004 4,189 4,529 5,152 4,884 4,961 6,182 6,839 9 Latin America and Caribbean 11,148 8,417' 8,813' 8,561 9,217 8,924 8,308 7,925 8,271 10 Asia 86,448 105,868 109,529 109,487 114,106 116,417' 116,208' 119,299 127,427 11 1,824 1,503 1,837 1,618 1,474 1,562 1,402 1,458 1,493 12 Other countries6 3,199 5,412 6,589 7,094 6,089' 4,665 4,147 4,442 4,682 1. Includes the Bank for International Settlements. bonds and notes payable in foreign currencies. 2. Principally demand deposits, time deposits, bankers acceptances, commer- 5. Debt securities of U.S. government corporations and federally sponsored cial paper, negotiable time certificates of deposit, and borrowings under repur- agencies, and U.S. corporate stocks and bonds. chase agreements. 6. Includes countries in Oceania and Eastern Europe. NOTE. Based on Treasury Department data and on data reported to the 3. Includes nonmarketable certificates of indebtedness (including those payable Treasury Department by banks (including Federal Reserve Banks) and securities in foreign currencies through 1974) and Treasury bills issued to official institutions dealers in the United States. of foreign countries. 4. Excludes notes issued to foreign official nonreserve agencies. Includes 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies1 Millions of dollars, end of period 1987 IItteemm 11998844 11998855 11998866 Mar.' June' Sept.' Dec. 1 Banks' own liabilities 8,586 15,368 29,702 38,168 39,102 45,872 55,029 2 Banks' own claims 11,984 16,294 26,180 34,539 34,244 41,744 50,877 3 Deposits 4,998 8,437 14,129 15,466 12,034 15,753 18,190 4 Other claims 6,986 7,857 12,052 19,074 22,210 25,992 32,688 5 Claims of banks' domestic customers 569 580 2,507 2,012 923 1,067 551 1. Data on claims exclude foreign currencies held by U.S. monetary author- States that represent claims on foreigners held by reporting banks for the accounts ities. of the domestic customers. 2. Assets owned by customers of the reporting bank located in the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • June 1988 A Ranks in the United States 3 17 LIABILITIES TO FOREIGNERS Reported by Banks Payable in U.S. dollars Millions of dollars, end of period 1988 1987 Holder and type of liability 1984 1985 1986 Aug. Sept. Oct. Nov. Dec. Feb/ 602,100 1 2 3 4 5 6 I 9 A B B a D T O n O O f i e k o w t m t m s h r h ' n e e e e a r i o i r n g f d n w o n d n e s r n e e p t e d r g r o i u l s o e g s i m t a p n i i t b o a s e o i b s n l f i l i ^ t f t t e s i s i , • c e a e • s .. n s ' d i • . read c i e ly r ti t f r i a c n a s t f e e s r 5 a ble 4 3 1 1 0 1 0 1 2 1 5 7 0 6 9 6 0 0 , 0 , , 5 3 , , 8 , 5 4 2 , 6 , 0 4 9 7 2 1 6 4 6 0 8 1 9 3 8 6 8 ^ 3 I 4 3 1 1 3 4 2 2 1 7 9 5 6 1 1 1 9 7 3 4 , 9 , , 7 7 7 , , 0 1 , , 3 , 2 3 , , 6 2 1 7 0 9 5 0 7 8 5 6 3 0 7 6 5 5 8 1 6 3 4 8 5 4 1 2 4 1 0 2 4 3 0 9 0 3 6 3 2 1 2 0 9 0 4 , , , 8 5 . 9 , , 4 7 , 7 , 8 1 , , 3 5 % 8 8 4 6 9 0 0 1 9 5 1 9 % 1 5 0 1 8 7 5 4 1 2 5 1 1 2 4 3 1 9 4 3 5 1 3 1 2 7 3 2 , 9 , , 1 5 8 , , , 4 . 8 2 , 6 6 , , 7 3 0 4 3 2 2 8 3 9 0 6 3 1 9 5 1 8 5 8 5 1 ' r 7 9 r ' ' ' ' 5 I 4 1 2 8 1 4 2 5 4 2 8 6 3 8 0 1 3 0 8 9 9 , 7 , , 6 2 1 , , , 2 8 , , 1 1 0 , 7 , 4 9 0 2 6 1 0 6 8 4 8 2 4 0 9 3 6 4 1 7 r 8 2 ' ' 9 ' ' ' I 6 4 1 2 0 1 6 2 5 5 3 9 5 4 2 2 3 1 3 1 5 1 , 2 , , 4 5 1 , , , 9 8 , , 9 0 1 , , 3 1 1 8 8 9 7 2 4 3 7 3 6 3 2 6 6 5 7 8 4 0 ' 3 3 ' ' ' ' ' 6 4 1 2 0 1 5 2 5 4 3 9 5 4 7 3 1 3 2 7 4 6 , 7 , , 6 4 0 , , , 7 6 , , 1 4 2 , , 4 6 7 3 7 3 0 6 7 6 4 1 4 3 6 9 4 2 4 2 0 ' 2 7 0 ' ' ' ' 6 4 1 2 1 1 1 2 6 5 4 4 8 4 0 2 9 3 1 8 1 7 , 9 1 , , 0 6 6 , , , 4 7 1 , 0 , 5 , , 2 1 7 8 7 6 0 5 5 7 2 3 4 1 7 8 4 2 9 1 ' 5 3 2 ' c ' ' ' ' ' ' / 4 1 2 1 4 2 1 5 3 3 5 0 6 1 1 3 8 2 3 4 3 , , 6 4 , , , 1 4 , 9 1 , 6 , , 8 8 8 4 6 3 3 3 7 9 6 4 5 4 8 0 8 1 7 1 4 3 4 1 2 1 4 1 2 4 5 2 5 0 3 2 3 1 0 1 9 9 8 , , 5 5 , , 8 0 , 1 , 4 1 , 3 , , 0 2 , 9 1 4 5 8 2 4 3 0 7 7 5 6 8 3 8 8 9 3 6 7 9 6 10 Other 11SV 3,594 5,809- 4,373' 5,875 1 1 r 1 2 N B e o a1 D T n O n1 m 1 i e k o t * m S h m r 3s o g ' e e n a a r o e n 2 d n t w d a e i S z n r p a d y o t e l i s i o i p a i n n t b o s & t s i e r l r * t i s t n i a e t s i on s al a e nd r s • e g • i • o * n • a l I 4 2 - 2 , , 4 0 , 1 2 4 4 9 5 1 , 5 9 2 4 1 4 4 4 3 6 0 6 / 5 2 2 3 1 , , 1 , 8 6 , 0 , 4 2 , 7 2 2 4 8 6 6 0 3 1 1 6 5 7 9 0 6 4 5 3 2 1 1 , , 1 , 8 9 , . 0 1 6 , 8 0 2 5 5 6 9 9 4 5 7 9 8 5 9 3 9 9 0 5 2 1 , , 3 4 , 8 6 3 9 4 0 4 2 8 4 7 7 4 3 1 , 1 , , 5 2 2 ,3 8 8 3 6 7 0 0 5 4 8 0 ' ' 1 1 ,6 , 1 5 9 2 8 0 8 1 8 0 7 6 4 5 3 2 1 2 , 1 , , 1 , 0 0 , 6 7 9 7 8 9 2 1 4 5 1 5 4 4 7 4 7 ' 5 1 ' 2 1 1 , 1 , , 2 6 5 8 , 7 2 4 4 1 2 3 6 6 9 9 2 3 9 1 5 7 0 ' ' 4 1 1 1 , , 0 . , 7 5 6 8 6 5 9 8 7 2 1 2 0 3 8 3 3 6 2 1 2 2 , , , , 4 , 1 4 8 0 4 7 2 8 6 1 1 5 4 1 9 5 1 instruments 0 0 123,183 1 125,233 W7,745' 117,156' 116,801' 120,650 2 1 2 2 2 2 H 0 9 1 2 3 4 O B B f a O a f D T u O n i U O s c t i k e h t i m t . h a m s e h S ' l e e r T e . a e r r i o i n 2 n r d n w d n s e e s t e n t p ^ i d r g t o u e r u l o s i p m t t y a i i i o t b o b a e s f i n b n f i l t s i l t f s e t s i l " e a s s n M d d r c e e a r d t i i l f y ic t a r t a e n s5 s '' f . e ;' r . a '. b '. l ' e . ' • . ' • . ' • . ' • . ' • . ' • . ' • . ' • . I • • | [ I 5 9' 8 9 1 6 9 6 6 76 9 > 7 , , 3 , 0 9 , 0 6 7 0 6 6 3 4 2 5 8 9 6 4 7 2 1 5 9 5 0 2 7 0 9 3 , 5 , , 9 , , 8 0 , , 8 9 , 1 2 8 8 3 7 0 4 5 5 5 2 5 7 7 9 9 0 2 4 5 10 2 1 1 7 7 3 5 2 0 2 8 5 , 2 , , 5 , 4 , , 2 , 4 , 6 1 6 6 3 2 6 9 1 6 4 5 9 4 7 7 4 7 3 2 0 7 5 1 2 0 1 1 8 7 7 6 1 3 0 1 8 3 , , , , , 9 , 4 , 9 5 9 , 5 2 1 3 3 0 1 4 8 0 1 5 8 3 7 4 0 6 5 0 1 ' ' 4 ' 2 1 1 7 7 8 1 4 2 9 5 3 , , , , , 3 , 8 , 2 2 4 7 5 4 1 0 6 7 0 0 4 4 6 0 6 8 1 1 0 ' 0 ' ' 3 1 1 8 7 4 1 6 6 2 8 3 , , , , , 7 , 9 , 5 2 3 8 3 2 8 0 8 9 7 1 2 2 5 5 4 6 2 9 8 5 ' ' ' 3 4 1 1 8 8 1 0 1 3 5 5 2 2 , 0 , , , , 0 , 5 , 7 8 7 5 , 9 6 2 6 3 0 2 3 4 9 0 6 1 9 7 0 5 2 3 0 ' 1 ' ' ' ! 2 4 1 1 9 8 8 1 1 2 4 1 8 2 , , 4 , , , 6 , 9 3 4 , 9 8 , 9 8 4 1 0 0 2 6 2 9 6 8 4 2 9 9 5 9 0 ' 6 4 ' ' 2 3 1 1 9 9 9 1 9 1 6 3 0 2 , , 1 , , 9 , , 6 7 5 . 2 6 , 4 2 0 2 5 1 9 6 3 4 1 5 8 7 5 1 2 5 2 5 7 2 3 1 1 % 9 8 1 8 1 5 3 2 , , , , 7 , 9 , 8 6 2 4 , 4 , 5 4 2 6 3 4 1 9 0 9 0 9 1 9 0 6 4 7 2 4 4 2 2 3 3 3 3 3 8 3 9 1 0 2 3 4 5 B B a a O U n n O t k n k h w a s D T O s e f ' r n i e f t m i m o h l f e w i o e a a r r n n d t e e d e d i l g p i d a f n o o b e s r o i p i l e t f i o s i f t i g i r e n c • t s e s • b s . a - • j n k • s 2 2 4 1 2 7 4 1 1 5 8 2 5 1 4 7 0 7 0 , 3 , 1 7 , 8 , , , 3 7 , , 0 5 0 , , 6 5 9 4 6 2 2 9 5 7 4 2 3 4 8 3 2 5 6 1 6 5 8 6 275 2 , 2 9 5 , , 8 8 8 9 6 3 6 2 3 3 1 2 5 1 0 6 1 2 0 4 1 0 1 4 0 6 9 1 9 , , , , 7 , , 1 , , 3 , 2 0 5 1 5 4 9 6 0 6 3 3 0 7 5 8 6 3 2 6 1 0 9 4 3 3 1 2 6 1 6 0 2 1 4 2 9 9 9 6 7 3 3 , 9 , , 9 , , , 9 , 9 , , 3 3 0 6 0 5 1 5 0 2 5 6 3 0 7 0 7 2 0 3 9 5 0 ' 0 ' ' ' ' ' ' 3 3 1 2 9 4 7 1 3 2 4 0 7 9 2 7 7 0 9 3 , 9 , 5 , 9 7 , , , , 0 7 , 9 , 4 6 , 0 , 7 4 2 2 0 3 9 2 6 5 8 3 2 0 2 2 1 9 2 8 6 1 9 ' 1 6 ' 2 ' ' ' ' ' 4 3 1 2 0 5 7 1 2 3 3 4 5 9 3 9 1 4 3 5 6 8 , , 5 1 , , , 6 , , 3 , 1 3 5 , 2 , 1 , 3 9 3 4 1 9 7 6 8 2 3 2 6 6 5 6 0 8 9 3 5 8 1 1 ' 4 ' 6 ' ' ' ' ' 3 1 2 5 7 2 1 3 3 4 4 3 6 0 1 1 4 9 6 , 5 1 , , , , 4 , , , 8 1 6 6 , 2 , 2 4 5 0 1 6 4 5 2 6 0 8 8 2 4 2 0 8 1 2 9 0 6 ' 3 ' ' ' ' ' 3 1 2 7 7 1 2 3 4 4 1 2 9 3 0 2 7 9 2 5 , 8 , , , , , 2 , , 6 9 9 7 , 5 , 8 1 3 0 2 3 1 2 9 7 1 3 9 4 9 3 8 6 0 1 9 4 0 ' 6 ' ' ' ' ' ' ' ' 3 1 2 4 7 1 3 3 4 5 9 3 1 1 0 3 8 6 5 , , 1 , , , , 3 7 7 , , 2 7 6 , , 1 9 5 9 7 6 2 4 0 7 8 7 8 5 4 2 3 9 0 1 2 9 0 4 3 1 2 4 7 1 3 2 4 1 9 3 2 2 0 9 9 5 4 , , 1 , , , , 5 7 1 1 , . 3 3 , , 6 5 4 2 3 6 2 9 2 3 3 2 3 9 9 7 5 0 7 9 4 6 2 6 instruments 4,841 81,853' 79,575' 80,446 1 81,218 3 4 4 4 4 4 £ 9 g 0 1 2 3 4 O B t a O h D T O n O e t i k e h r t m t s m e h h ' f e r e e o a o r r r n d x w e d e n " i n p g e e d o n g a l e s o e i ^ p a i r t r t b i o s y s a i s ' b l i b i t l t s e i i l e l s a s n 'a d n r d e a c d e il r y ti f t i r c a a n te s s fe . r . a '" • b l • e • • • • • • • 6 6 5 7 0 6 2 7 4 , , 3 , , 8 4 , 9 , 6 , 4 8 0 9 7 0 3 3 7 6 1 2 4 7 2 8 6 8 1 7 9 1 7 74 9 4 , 4 3 , , , 4 3 3 6 4 3 1 1 3 8 9 4 6 9 7 1 9 4 2 , 6 2 8 , , , , 9 5 7 3 1 4 0 5 1 2 1 6 5 0 7 6 5 1 8 6 9 3 2 2 3 , 5 2 . , 5 , , 5 , 9 , 9 6 , , 7 0 7 5 6 5 7 5 2 2 6 6 9 6 4 0 8 6 1 2 ' 4 7 ' ' ' ' 7 6 5 1 9 8 5 3 3 1 , 5 , 2 9 , , 2 , , 1 , 9 , 6 0 1 9 6 9 3 6 1 4 1 0 6 4 7 6 7 6 ' 4 8 ' ' ' 7 6 5 1 8 7 9 4 2 3 1 , 5 , 2 , , , 7 2 4 , , 7 9 . , 5 3 2 5 6 0 9 7 4 2 0 2 9 8 6 5 2 0 3 9 7 ' 6 ' r ' ' 6 5 1 8 9 5 3 3 2 6 , 2 , , , 9 9 , , 7 , 2 , 8 8 3 6 8 7 0 8 4 8 4 9 1 0 3 7 2 2 7 3 ' ' ' 6 5 1 6 9 4 3 3 2 6 2 , , , , 9 5 , , 2 , 1 , 5 5 8 2 8 8 7 2 8 1 3 3 5 9 1 5 9 5 6 8 ' ' ' ' 6 5 1 6 9 4 3 3 3 7 , 2 , , , 8 2 , , 3 , 1 , 6 6 4 1 5 7 7 6 2 3 2 6 7 5 3 9 9 3 2 5 6 5 1 6 9 4 2 4 5 7 , 3 , , , 1 4 , , 2 4 , 0 , 9 0 5 2 3 9 U 6 2 2 4 5 7 2 4 8 2 4 48 Othe i r n struments 6,676 7,361 7,314 7,647 7,370 7,4% 6,458 6,501 49 MEMO: Negotiable time certificates of deposit in 10,476 9,845 custody for foreigners - bills 'TSSSaS^SSs^MiS, a^fSstStea — - - - i i i M S i S S^ J -- — - - < - —- to"e"tr" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 3.17 Continued 1987 1988 AArreeaa aanndd ccoouunnttrryy 11998844 11998855 11998866 Aug. Sept. Oct. Nov. Dec. Jan. Feb." 1 Total 407,306 435,726 540,996 554,803' 586,148' 605,116' 605,074' 618,622' 601,081 602,100 2 Foreign countries 402,852 429,905 535,189 549,470' 578,397' 601,522' 599,265' 614,249' 595,206 593,615 3 Europe 153,145 164,114 180,556 208,534' 215,293' 233,296' 229,008' 234,662' 225,540 225,873 4 Austria 615 693 1,181 1,066 i,28C 1,166 1,254' 920 992 964 5 Belgium-Luxembourg 4,114 5,243 6,729 9,754 10,463' 10,833' 10,917' 9,304' 9,386 9,798 6 Denmark 438 513 482 576 590 704 628 757' 547 655 7 Finland 418 496 580 535' 507' 571' 461 377 401 405 8 France 12,701 15,541 22,862 27,003 27,899 28,255 27,522 29,954' 28,198 28,847 9 Germany 3,358 4,835 5,762 7,746' 6,834' 8,562' 8,548' 7,061 7,788 8,675 10 Greece 699 666 700 636 690 738 715' 689 638 639 11 Italy 10,762 9,667 10,875 7,667 8,410 10,282' 10,016' 12,063 11,258 11,000 12 Netherlands 4,731 4,212 5,600 5,462' 6,119' 6,725' 6,490 5,013 5,272 5,317 13 Norway 1,548 948 735 593 663 1,187' 1,074 1,362 1,196 828 14 Portugal 597 652 699 700 684 724 858 801 725 780 IS Spain 2,082 2,114 2,407 2,287 2,526 2,683 2,614 2,619 2,359 2,433 16 Sweden 1,676 1,422 884 1,387 1,639 1,582' 2,882 1,379 1,393 1,719 17 Switzerland 31,740 29,020 30,534 28,265' 27,332' 29,053' 30,167 33,754' 31,925 31,372 18 Turkey 584 429 454 514 398 550 433 703 674 592 19 United Kingdom 68,671 76,728 85,334 107,149' 110,235' 119,308' 115,122' 116,778' 111,747 112,066 7.0 Yugoslavia 602 673 630 491 519 508 485 711 541 557 7.1 Other Western Europe1 7,192 9,635 3,326 6,016 7,958' 9,18c 8,184 9,798' 9,720 8,345 77 U.S.S.R 79 105 80 45 51 87 36 31 37 49 23 Other Eastern Europe 537 523 702 640' 494' 599' 602 588' 743 831 24 Canada 16,059 17,427 26,345 22,560' 26,065' 25,74C 28,681 30,083 28,691 25,966 ?s Latin America and Caribbean 153,381 167,856 210,318 201,251' 214,096' 217,859' 214.306' 220,313' 211,991 210,451 7.6 Argentina 4,394 6,032 4,757 5,074 4,674 5,075 5,267' 4,994 4,893 5,078 77 Bahamas 56,897 57,657 73,619 61,738' 70,718' 72,547' 70,946' 74,589' 69,171 64,936 78 Bermuda 2,370 2,765 2,922 2,265' 2,234 2,442' 2,231' 2,335' 2,137 2,022 79 Brazil 5,275 5,373 4,325 3,967' 4,413' 3,691' 4,136' 4,00C 3,936 4,226 30 British West Indies 36,773 42,674 72,263 74,165' 78,582' 80,303' 78,236' 81,632' 78,4% 80,055 31 Chile 2,001 2,049 2,054 2,119 2,248 2,191 2,218 2,21C 2,122 2,358 3? Colombia 2,514 3,104 4,285 4,429' 4,199' 4,195' 4,305 4,205 3,947 3,892 33 Cuba 10 11 7 7 7 12 9 12 8 9 34 Ecuador 1,092 1,239 1,236 1,101 1,097 1,062' 1,087 1,082 1,115 1,132 35 Guatemala 896 1,071 1,123 1,087 1,072 1,053 1,032 1,080 1,098 1,098 36 Jamaica 183 122 136 171 156 140 150 160 150 148 37 Mexico 12,303 14,060 13,745 14,549 14,286' 14,325' 14,508 14,534 15,021 15,127 38 Netherlands Antilles 4,220 4,875 4,970 5,338 5,218 5,305 5,234 4,972 4,987 5,156 39 Panama 6,951 7,514 6,886 7,122' 7,179' 7,457' 7,503' 7,400 7,329 6,983 40 Peru 1,266 1,167 1,163 1,203 1,206 1,205 1,205 1,271 1,235 1,326 41 Uruguay 1,394 1,552 1,537 1,485 1,492 1,494' 1,526 1,579 1,670 1,752 47 Venezuela 10,545 11,922 10,171 10,249' 9,866' 9,929' 9,075 9,035 9,174 9,728 43 Other 4,297 4,668 5,119 5,181' 5,451' 5,434' 5,639' 5,223' 5,502 5,426 44 Asia 71,187 72,280 108,831 106,964' 112,294' 115,683' 118,834' 121,177' 121,113 122,849 China 45 Mainland 1,153 1,607 1,476 2,011 1,775 1,699 1,435 1,162 1,336 1,352 46 Taiwan 4,990 7,786 18,902 15,377 15,197 18,302 21,564 21,494' 22,869 23,884 47 Hong Kong 6,581 8,067 9,393 9,012' 8,653' 9,59C 10,541 10,196 9,284 9,984 48 India 507 712 674 902 771 606 701 588 866 880 49 Indonesia 1,033 1,466 1,547 1,541 1,440' 1,336 1,677 1,399 1,474 1,587 50 Israel 1,268 1,601 1,892 1,036 1,105 2,170 1,221 1,477' 1,265 1,355 51 Japan 21,640 23,077 47,410 49,872 53,747' 53,268' 52,735' 54,109' 55,128 56,293 57 Korea 1,730 1,665 1,141 1,388 1,714 1,557' 1,606 1,599' 1,739 1,502 53 Philippines 1,383 1,140 1,866 1,208 1,152 1,331 1,259 1,085 1,035 1,003 54 Thailand 1,257 1,358 1,119 1,180' 1,116' 1,275 1,483 1,345 1,433 1,354 55 Middle-East oil-exporting countries3 16,804 14,523 12,352 12,676 14,043 13,660 13,379' 13,993 12,503 12,409 56 Other 12,841 9,276 11,058 10,760' 11,58c 10,888' 11,232 12,73C 12,181 11,248 57 Africa 3,396 4,883 4,021 4,194 4,011 3,918' 4,065 3,944' 3,757 3,755 58 Egypt 647 1,363 706 1,158 1,118 1,104 1,169 l.lSC 1,142 1,118 59 Morocco 118 163 92 74 81 70 75 194 71 69 60 South Africa 328 388 270 227 198' 280 246 202 214 194 61 Zaire 153 163 74 69 81 71 82 67 89 86 62 Oil-exporting countries4 1,189 1,494 1,519 1,331' 1,179' 1,081 1,108 1,014 981 1,047 63 Other 961 1,312 1,360 1,335 1,354 1,313 1,386 1,316 1,261 1,241 64 Other countries 5,684 3,347 5,118 5,968' 6,638' 5,026' 4,372' 4,069' 4,114 4,720 65 Australia 5,300 2,779 4,196 5,065' 5,684' 4,057' 3,711 3,325 3,319 3,817 66 All other 384 568 922 904' 955r 969' 661' 744' 795 903 67 Nonmonetary international and regional organizations 4,454 5,821 5,807 5,332 7,751' 3,594 5,809' 4,373' 5,875 8,486 68 International5 3,747 4,806 4,620 3,819 6,103' 2,107 3,724' 2,739' 4,301 6,445 69 Latin American regional 587 894 1,033 1,070 1,126 1,155 1,478 1,272 1,181 1,505 70 Other regional6 120 121 154 443 522 331 608 362 393 536 1. Includes the Bank for International Settlements and Eastern European 4. Comprises Algeria, Gabon, Libya, and Nigeria. countries that are not listed in line 23. 5. Excludes "holdings of dollars" of the International Monetary Fund. 2. Comprises Bulgaria, Czechoslovakia, the German Democratic Republic, 6. Asian, African, Middle Eastern, and European regional organizations, Hungary, Poland, and Romania. except the Bank for International Settlements, which is included in "Other 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and Western Europe." United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • June 1988 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1987r 1988 AArreeaa aanndd ccoouunnttrryy 11998844 11998855 11998866 Aug. Sept. Oct. Nov. Dec. Jan. Feb.p 1 Total 400,162 401,608 444,745 427,804 447,788 461,224 459,788 458,714 442,234 440,426 2 Foreign countries 399,363 400,577 441,724 424,681 443,104 458,393 452,618 454,131 439,423 438,239 3 Europe 99,014 106,413 107,823 104,270 105,925 111,006 107.259 101,409 97,007 99,974 4 Austria 433 598 728 784 683 929 927 793 762 800 5 Belgium-Luxembourg 4,794 5,772 7,498 9,587 9,586 10,133 9,551 9,377 9,629 9,781 6 Denmark 648 706 688 868 747 790 881 718 852 746 7 Finland 898 823 987 1,031 1,266 1,089 1,030 1,010 876 835 8 France 9,157 9,124 11,356 12,529 12,780 14,348 13,512 13,473 11,687 12,203 9 Germany 1,306 1,267 1,816 1,333 1,487 2,104 1,557 2,060 2,189 1,893 10 Greece 817 991 648 375 406 430 452 463 573 746 11 Italy 9,119 8,848 9,043 6,412 6,542 7,412 7,286 7,467 6,516 6,164 12 Netherlands 1,356 1,258 3,296 3,076 3,247 3,964 3,813 2,619 2,902 2,897 13 Norway 675 706 672 803 722 812 938 934 842 745 14 Portugal 1,243 1,058 739 667 638 570 545 477 471 499 15 Spain 2,884 1,908 1,492 1,945 2,234 1,859 2,032 1,849 1,629 1,966 16 Sweden 2,230 2,219 1,964 2,474 2,746 2,527 2,640 2,269 2,106 2,304 17 Switzerland 2,123 3,171 3,352 2,674 2,614 2,825 2,880 2,659 2,572 3,068 18 Turkey 1,130 1,200 1,543 1,757 1,681 1,564 1,566 1,675 1,631 1,638 19 United Kingdom 56,185 62,566 58,335 54,186 54,739 55,906 53,960 49,959 48,318 50,096 20 Yugoslavia 1,886 1,964 1,835 1,742 1,741 1,750 1,697 1,700 1,694 1,706 21 Other Western Europe1 5% 998 539 548 608 539 662 665 578 725 22 U.S.S.R 142 130 345 521 544 473 437 389 386 376 23 Other Eastern Europe 1,389 1,107 948 958 915 983 892 852 794 786 24 Canada 16,109 16,482 21,006 18,484 21,599 21,402 25,313 25,269 23,380 21,890 25 Latin America and Caribbean 207,862 202,674 208,825 202,866 214,718 217,010 211,906 213,253 206,889 202,411 26 Argentina 11,050 11,462 12,091 12,295 11,857 12,119 12,054 11,987 12,106 11,974 27 Bahamas 58,009 58,258 59,342 55,867 64,951 63,666 61,437 64,788 60,881 57,512 28 Bermuda 592 499 418 359 328 418 331 478 380 321 29 Brazil 26,315 25,283 25,716 26,693 26,047 25,803 25,453 25,288 25,358 25,640 30 British West Indies 38,205 38,881 46,284 43,586 47,866 51,721 49,549 48,757 47,013 46,263 31 Chile 6,839 6,603 6,558 6,519 6,469 6,388 6,429 6,304 6,332 6,260 32 Colombia 3,499 3,249 2,821 2,784 2,730 2,730 2,730 2,739 2,709 2,667 33 Cuba 0 0 0 0 0 0 0 1 0 0 34 Ecuador 2,420 2,390 2,439 2,385 2,367 2,396 2,334 2,286 2,339 2,236 35 Guatemala 158 194 140 105 124 131 145 144 134 140 36 Jamaica 252 224 198 202 198 191 184 188 202 190 37 Mexico 34,885 31,799 30,698 30,718 30,591 30,307 30,101 29,526 29,123 29,211 38 Netherlands Antilles 1,350 1,340 1,041 987 1,034 1,013 1,113 980 1,029 1,121 39 Panama 7,707 6,645 5,436 4,625 4,580 4,566 4,685 4,739 4,304 3,791 40 Peru 2,384 1,947 1,661 1,549 1,479 1,457 1,459 1,323 1,316 1,336 41 Uruguay 1,088 960 940 966 962 961 975 968 %1 954 42 Venezuela 11,017 10,871 11,108 11,368 11,277 11,224 11,109 10,998 10,917 11,038 43 Other Latin America and Caribbean 2,091 2,067 1,936 1,857 1,857 1,920 1,818 1,761 1,785 1,755 44 66,316 66,212 96,126 91,557 9933,,336611 110000,,332288 110000,,227722 110066,,223311 110044,,992255 110066,,771188 China 45 Mainland 710 639 787 919 894 543 870 968 886 887 46 Taiwan 1,849 1,535 2,681 2,772 2,980 4,224 4,784 4,577 3,994 4,002 47 Hong Kong 7,293 6,797 8,307 6,594 6,953 6,887 7,312 8,135 7,591 7,721 48 India 425 450 321 565 551 527 502 510 495 548 49 Indonesia 724 698 723 624 622 625 601 580 571 632 50 Israel 2,088 1,991 1,634 1,450 1,591 1,331 1,293 1,363 1,279 1,211 51 Japan 29,066 31,249 59,674 61,120 60,120 65,679 64,767 69,098 71,085 73,231 52 Korea 9,285 9,226 7,182 4,589 4,616 4,9% 4,982 5,004 4,919 4,734 53 Philippines 2,555 2,224 2,217 2,151 2,126 2,082 2,040 2,069 1,961 1,966 54 Thailand 1,125 845 578 545 453 446 439 491 517 520 55 Middle East oil-exporting countries 5,044 4,298 4,122 4,315 4,848 5,063 5,157 4,841 3,567 3,437 56 Other Asia 6,152 6,260 7,901 5,916 7,608 7,924 7,524 8,5% 8,060 7,829 57 Africa 6,615 5,407 4,650 4,738 4,707 5,375 4,668 4,742 4,805 4,869 58 Egypt 728 721 567 586 541 538 526 521 510 469 59 Morocco 583 575 598 603 582 605 585 542 491 490 60 South Africa 2,795 1,942 1,550 1,497 1,508 1.546 1,494 1,507 1,520 1,461 61 Zaire 18 20 28 35 40 38 36 15 36 82 62 Oil-exporting countries5 842 630 694 861 887 1,530 903 1,003 1,019 1,086 63 Other 1,649 1,520 1,213 1,156 1,149 1,118 1,123 1,153 1,229 1,280 64 Other countries 3,447 3,390 3,294 2,764 2,793 3,272 3,201 3,228 2,418 2,378 65 Australia 2,769 2,413 1,949 1,689 1,837 2,035 2,093 2,189 1,428 1,430 66 All other 678 978 1,345 1,075 955 1,237 1,109 1,039 991 947 67 Nonmonetary international and regional organizations6 800 1,030 3,021 3,123 4,684 2,830 7,170 4,583 2,811 2,187 1. Includes the Bank for International Settlements. Beginning April 1978, also 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and includes Eastern European countries not listed in line 23. United Arab Emirates (Trucial States). 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German 5. Comprises Algeria, Gabon, Libya, and Nigeria. Democratic Republic, Hungary, Poland, and Romania. 6. Excludes the Bank for International Settlements, which is included in 3. Included in "Other Latin America and Caribbean" through March 1978. "Other Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1987' 1988 TTyyppee ooff ccllaaiimm 11998844 11998855 11998866 Aug. Sept. Oct. Nov. Dec. Jan. Feb.'' 1 Total 444444433333333333333,,,,,,,000000077777778888888 444444433333330000000,,,,,,,444444488888889999999 444444477777778888888,,,,,,,666666655555550000000 444444488888881111111,,,,,,,555555599999997777777 444444499999996666666,,,,,,,444444444444440000000 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444400000000000000,,,,,,,111111166666662222222 444444400000001111111,,,,,,,666666600000008888888 444444444444444444444,,,,,,,777777744444445555555 427,804 444444444444447777777,,,,,,,777777788888888888888 461,224 459,788 444444455555558888888,,,,,,,777777711111114444444 442,234 440,426 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,222222233333337777777 66666660000000,,,,,,,555555500000007777777 66666664444444,,,,,,,000000099999995555555 66,127 66666667777777,,,,,,,111111100000004444444 64,967 69,483 66666665555555,,,,,,,333333322222229999999 63,531 62,222 44 OOwwnn ffoorreeiiggnn ooffffiicceess 111111155555556666666,,,,,,,222222211111116666666 111111177777774444444,,,,,,,222222266666661111111 222222211111111111111,,,,,,,555555533333333333333 196,225 222222211111110000000,,,,,,,222222266666667777777 218,396 220,479 222222222222223333333,,,,,,,111111111111110000000 217,103 218,132 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222224444444,,,,,,,999999933333332222222 111111111111116666666,,,,,,,666666655555554444444 111111122222222222222,,,,,,,999999944444446666666 122,204 111111122222227777777,,,,,,,444444477777775555555 134,104 126,389 111111122222227777777,,,,,,,333333311111119999999 119,784 118,398 66 DDeeppoossiittss 44444449999999,,,,,,,222222222222226666666 44444448888888,,,,,,,333333377777772222222 55555557777777,,,,,,,444444488888884444444 57,270 66666660000000,,,,,,,111111144444443333333 63,193 58,052 66666660000000,,,,,,,222222255555550000000 55,265 55,283 77 OOtthheerr 77777775555555,,,,,,,777777700000006666666 66666668888888,,,,,,,222222288888882222222 66666665555555,,,,,,,444444466666662222222 64,934 66666667777777,,,,,,,333333333333332222222 70,911 68,337 66666667777777,,,,,,,000000066666668888888 64,520 63,115 88 AAllll ootthheerr ffoorreeiiggnneerrss 55555556666666,,,,,,,777777777777777777777 55555550000000,,,,,,,111111188888885555555 44444446666666,,,,,,,111111177777771111111 43,248 44444442222222,,,,,,,999999944444441111111 43,756 43,437 44444442222222,,,,,,,999999955555557777777 41,816 41,673 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 33333332222222,,,,,,,999999911111116666666 22222228888888,,,,,,,888888888888881111111 33333333333333,,,,,,,999999900000005555555 33333333333333,,,,,,,888888800000009999999 33333337777777,,,,,,,777777722222226666666 3333333,,,,,,,333333388888880000000 3333333,,,,,,,333333333333335555555 4444444,,,,,,,444444411111113333333 3333333,,,,,,,111111100000003333333 3333333,,,,,,,666666677777772222222 11 Negotiable and readily transferable 22222223333333,,,,,,,888888800000005555555 11111119999999,,,,,,,333333333333332222222 22222224444444,,,,,,,000000044444444444444 22222222222222,,,,,,,000000077777771111111 22222226666666,,,,,,,666666688888884444444 12 Outstanding collections and other 5555555,,,,,,,777777733333332222222 6666666,,,,,,,222222211111114444444 5555555,,,,,,,444444444444448888888 8888888,,,,,,,666666633333336666666 7777777,,,,,,,333333377777770000000 13 MEMO: Customer liability on 33333337777777,,,,,,,111111100000003333333 22222228888888,,,,,,,444444488888887777777 22222225555555,,,,,,,777777700000006666666 22222221111111,,,,,,,777777788888888888888 22222223333333,,,,,,,333333311111117777777 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 .... 40,714 38,102 41,434R 41,118 39,734 42,272 37,905 37,919 34,216 39,387 1. Data for banks' own claims are given on a monthly basis, but the data for 3. Assets owned by customers of the reporting bank located in the United claims of banks' own domestic customers are available on a quarterly basis only. States that represent claims on foreigners held by reporting banks for the account 2. U.S. banks: includes amounts due from own foreign branches and foreign of their domestic customers. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 4. Principally negotiable time certificates of deposit and bankers acceptances. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of 5. Includes demand and time deposits and negotiable and nonnegotiable foreign banks: principally amounts due from head office or parent foreign bank, certificates of deposit denominated in U.S. dollars issued by banks abroad. For and foreign branches, agencies, or wholly owned subsidiaries of head office or description of changes in data reported by nonbanks, see July 1979 BULLETIN, parent foreign bank. p. 550. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1987'" MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998844 11998855 11998866 Mar. June Sept. Dec. 1 Total 243,952 227,903 232,295 226,297 236,828 236,490 234,325 By borrower 2 Maturity of 1 year or less1 167,858 160,824 160,555 155,156 167,488 166,156 163,380 3 Foreign public borrowers 23,912 26,302 24,842 25,382 24.088 27,157 26,149 4 All other foreigners 143,947 134,522 135,714 129,774 143,400 138,998 137,231 5 Maturity over 1 year 76,094 67,078 71,740 71,141 69,340 70,334 70,945 6 Foreign public borrowers 38,695 34,512 39,103 38,751 39,341 39,470 38,714 7 All other foreigners 37,399 32,567 32,637 32,390 29,999 30,864 32,231 By area Maturity of 1 year or less1 8 Europe 58,498 56,585 61,784 57,987 68,872 62,228 58,601 9 Canada 6,028 6,401 5,895 5,568 5,603 5,733 5,664 10 Latin America and Caribbean 62,791 63,328 56,271 54,733 55,489 58,439 56,078 11 Asia 33,504 27,966 29,457 29,688 31,155 32,133 36,389 12 Africa 4,442 3,753 2,882 3,154 2,989 2,871 2,823 13 All other2 2,593 2,791 4,267 4,026 3,380 4,751 3,825 Maturity of over 1 year1 14 Europe 9,605 7,634 6,737 6,755 6,479 6,753 6,778 15 Canada 1,882 1,805 1,925 1,855 1,664 1,579 2,631 16 Latin America and Caribbean 56,144 50,674 56,719 56,214 55,580 55.089 53,767 17 Asia 5,323 4,502 4,043 4,123 3,495 3,497 3,667 18 Africa 2,033 1,538 1,539 1,630 1,512 1,622 1,726 19 All other2 1,107 926 777 564 611 1,794 2,375 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • June 1988 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1-2 Billions of dollars, end of period 1985 1986 1987 Area or country lytsi iy&4 Dec. Mar. June Sept. Dec. Mar. June' Sept. Dec. 1 Total 434.0 405.7 385.3 385.6 389.7 389.5 389.6 393.4r 382.9 384.8' 381.8' 2 G-10 countries and Switzerland 167.8 148.1 146.0 152.8 160.3 159.0 158.0 162.2' 157.7 154.6' 161.6' 3 Belgium-Luxembourg 12.4 8.7 9.2 8.2 9.0 8.5 8.4 9.0r 8.3 8.1' 10.1 4 France 16.2 14.1 12.1 13.6 15.1 14.7 13.8 13.3' 12.5 13.7' 13.6 5 Germany 11.3 9.0 10.5 11.2 11.5 12.5 11.7 12.7' 11.2 10.5' 12.6 6 Italy 11.4 10.1 9.6 8.3 9.3 8.1 9.0 8.6 7.5 6.6' 7.3 7 Netherlands 3.5 3.9 3.7 3.5 3.4 3.9 4.6 4.4 7.3 4.8 4.1 8 Sweden 5.1 3.2 2.7 2.8 2.9 2.7 2.4 3.0 2.4 2.6' 2.1 9 Switzerland 4.3 3.9 4.4 5.3 5.6 4.8 5.8 5.8 5.7 5.4 5.5 10 United Kingdom 65.3 60.3 63.0 67.4 69.2 70.3 71.9 73.4' 71.8 71.3' 70.6 11 Canada 8.3 7.9 6.8 6.0 7.0 6.2 5.4 5.1' 4.6 4.6' 5.6 12 Japan 29.9 27.1 23.9 26.5 27.2 27.4 25.0 26^ 26.3 27.0' 30.1' 13 Other developed countries 36.0 33.6 29.9 31.1 30.7 29.5 26.2 25.7' 25.2 26.2' 26.2 14 Austria 1.9 1.6 1.5 1.5 1.7 1.7 1.7 1.9 1.8 1.9 1.9 15 Denmark 3.4 2.2 2.3 2.5 2.4 2.3 1.7 1.7 1.5 1.6 1.7 16 Finland 2.4 1.9 1.6 1.9 1.6 1.7 1.4 1.4 1.4 1.4 1.3 17 Greece 2.8 2.9 2.6 2.5 2.6 2.3 2.3 2.1 2.0 1.9 2.0 18 Norway 3.3 3.0 2.9 2.7 3.0 2.7 2.4 2.2 2.1 2.3' 2.3 19 Portugal 1.5 1.4 1.2 1.0 1.1 1.0 .8 .8' .8 .8 .6 20 Spain 7.1 6.5 5.8 6.4 6.4 6.7 5.8 6.3 6.1 7.4 8.0 21 Turkey 1.7 1.9 1.8 2.1 2.5 2.1 2.0 1.7' 1.7 1.5' 1.6 22 Other Western Europe 1.8 1.7 2.0 2.4 2.1 1.6 1.4 1.4 1.5 1.6 1.6 23 South Africa : 4.7 4.5 3.2 3.1 3.1 3.1 3.1 3.0' 3.0 2.9' 2.9 24 Australia 5.4 6.0 5.0 4.9 4.2 4.1 3.5 3.2 3.1 2.9 2.5' 25 OPEC countries3 28.4 24.9 21.3 20.4 20.6 20.0 19.6 20.2' 19.0 19.1' 17.3 26 Ecuador 2.2 2.2 2.1 2.2 2.1 2.2 2.2 2.1 2.1 2.0' 1.9 27 Venezuela 9.9 9.3 8.9 8.7 8.8 8.7 8.6 8.7' 8.6 8.4' 8.2 28 Indonesia 3.4 3.3 3.0 3.3 3.0 2.8 2.5 2.4 2.2 2.0 1.9 29 Middle East countries 9.8 7.9 5.3 4.5 5.0 4.6 4.5 5.4' 4.4 4.9' 3.6 30 African countries 3.0 2.3 2.0 1.8 1.7 1.7 1.7 1.6' 1.7 1.7 1.7 31 Non-OPEC developing countries 110.8 111.8 104.2 102.9 102.0 100.0 99.7 99.3' 99.5 96.6' 96.6' Latin America 32 Argentina 9.5 8.7 8.8 8.8 9.2 9.3 9.5 9.5 9.5 9.3 9.4 33 Brazil 23.1 26.3 25.4 25.6 25.5 25.4 25.3 25.5' 24.4 24.5' 24.1 34 Chile 6.4 7.0 6.9 7.0 7.1 7.2 7.1 7.2' 7.2 7.0' 6.9 35 Colombia 3.2 2.9 2.6 2.3 2.2 2.0 2.1 2.0 1.9 1.9' 2.0 36 Mexico 25.8 25.7 23.9 23.9 24.0 24.0 24.0 23.9" 25.3 24.7 23.6 37 Peru 2.4 2.2 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.2 1.1 38 Other Latin America 4.2 3.9 3.4 3.3 3.3 3.3 3.1 3.0 3.0 2.8 2.8 Asia China 39 Mainland .3 .7 .5 .6 .6 .6 .4 .9 .6 .3 .3 40 Taiwan 5.2 5.1 4.5 4.3 3.7 4.3 4.9 5.5 6.6 5.9 8.2 41 India .9 .9 1.2 1.2 1.3 1.3 1.2 1.7' 1.7 1.9 1.9 42 Israel 1.9 1.8 1.6 1.3 1.6 1.4 1.5 1.4 1.3 1.3 1.0 43 Korea (South) 11.2 10.6 9.2 9.2 8.7 7.3 6.7 6.2 5.6 4.9' 4.9 44 Malaysia 2.8 2.7 2.4 2.2 2.0 2.1 2.1 1.9 1.7 1.6 1.5 45 Philippines 6.1 6.0 5.7 5.6 5.7 5.4 5.4 5.4 5.4 5.4 5.1 46 Thailand 2.2 1.8 1.4 1.3 1.1 1.0 .9 .9 .8 .7 .7 47 Other Asia 1.0 1.1 1.0 .9 .8 .7 .7 .6 .7 .7 .7 Africa 48 Egypt 1.5 1.2 1.0 .9 .9 .7 .7 .6 .6 .6 .5 4 5 9 0 M Za o ir r e o cco .8j .8j .9j .9 J .9 .9 . . 9 1 . . 9 1 . . 9 1 .8 . . 0 9 51 Other Africa4 2.3 2A L9 L9 L7 L6 1.6 .9' 1.1 L0' i.r 52 Eastern Europe 5.3 4.4 4.1 4.0 4.0 3.4 3.2 3.0' 3.3 3.4 3.0 53 U.S.S.R .2 .1 .1 .3 .3 .1 .1 .1 .3 .5 .4 54 Yugoslavia 2.4 2.3 2.2 2.0 2.0 1.9 1.7 1.6 1.7 1.7 1.6 55 Other 2.8 2.0 1.8 1.7 1.7 1.4 1.4 1.3 1.3 1.2' 1.0 56 Offshore banking centers 68.9 65.6 62.9 57.5 55.4 60.5 63.2 63.2' 60.2 63.7' 53.1' 57 Bahamas 21.7 21.5 21.2 21.2 17.1 19.9 22.3 24.(y 19.7 25.5' 17.1' 58 Bermuda .9 .9 .7 .7 .4 .4 .7 .8 .6 .6 .6 59 Cayman Islands and other British West Indies 12.2 11.8 11.6 9.2 12.2 12.8 13.6 11.1' 12.4 10.7' 11.2' 60 Netherlands Antilles 4.2 3.4 2.2 2.2 2.4 1.9 1.8 1.7 1.3 1.2 1.2 6 6 1 2 L Pa e n b a a m no a n 5.8j 6.7 1 6.0 1 4.3 J 4.2 J 5.1 4.1 5.4 5.2 5.1' 4.5 63 Hong Kong 13^8 1L4 1L4 1L4 9*5 lois 1L2 1L4 12*5 12^3 1L2 64 Singapore 10.3 9.8 9.8 8.4 9.3 9.7 9.4 8.6' 8.3 8.1' 7.0 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 16.8 17.3 16.9 16.8 16.8 17.2 19.8 19.8 18.0 21.3 24.1' 1. The banking offices covered by these data are the U.S. offices and foreign from $50 million to $150 million equivalent in total assets, the threshold now branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. applicable to all reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. This group comprises the Organization of Petroleum Exporting Countries (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, adjusted to exclude the claims on foreign branches held by a U.S. office or another Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and foreign branch of the same banking institution. The data in this table combine Oman (not formally members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 4. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 5. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 6. Foreign branch claims only. 2. Beginning with June 1984 data, reported claims held by foreign branches 7. Includes New Zealand, Liberia, and international and regional organizahave been reduced by an increase in the reporting threshold for "shell" branches tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1986 1987 Type, and area or country 11998833 11998844 11998855 Dec. Mar. June Sept. Dec." 1 Total 25,346 29,357 27,825 25,850^ 27,551r 28,953' 28,339 27,322 2 Payable in dollars 22,233 26,389 24,2% 21,9%' 23,361r 24,466' 24,018 22,192 3 Payable in foreign currencies 3,113 2,968 3,529 3,854' 4,19c 4,487' 4,321 5,129 By type 4 Financial liabilities 10,572 14,509 13,600 12,371r 13,232'" 14,148' 12,839 11,310 5 Payable in dollars 8,700 12,553 11,257 9,886' 10,4%' l l^ 10,127 8,068 6 Payable in foreign currencies 1,872 1,955 2,343 2,485' 2,737' 2,899' 2,712 3,242 7 Commercial liabilities 14,774 14,849 14,225 13,479 14,318 14,805 15,500 16,012 8 Trade payables 7,765 7,005 6,685 6,447 6,985 7,139 7,389 7,394 9 Advance receipts and other liabilities .. 7,009 7,843 7,540 7,032 7,333 7,666 8,111 8,618 10 Payable in dollars 13,533 13,836 13,039 12,110 12,865 13,218 13,891 14,125 11 Payable in foreign currencies 1,241 1,013 1,186 1,368 1,453 1,587 1,609 1,887 By area or country Financial liabilities 12 Europe 5,742 6,728 7,700 8,138' 8,484' 9,765' 9,188 7,577 13 Belgium-Luxembourg 302 471 349 270 232 257 230 202 14 France 843 995 857 661r 758' 822' 615 415 15 Germany 502 489 376 368' 463' 402' 386 583 16 Netherlands 621 590 861 704 693 669 641 1,014 17 Switzerland 486 569 610 646 663' 655' 636 480 18 United Kingdom 2,839 3,297 4,305 5,199 5,414' 6,698' 6,394 4,690 19 Canada 764 863 839 399 431 441 407 357 20 Latin America and Caribbean 2,5% 5,086 3,184 i,%r 2,366' 1,744' %1 845 21 Bahamas 751 1,926 1,123 614 669 398 280 278 22 Bermuda 13 13 4 4 0 0 0 0 23 Brazil 32 35 29 32 26 22 22 25 24 British West Indies 1,041 2,103 1,843 1,163 1,545 1,223 581 475 25 Mexico 213 367 15 22 30 29 17 13 26 Venezuela 124 137 3 c C 2' 3 0 27 Asia 1,424 1,777 1,815 l,805r 1,882' 2,131' 2,204 2,428 28 Japan 991 1,209 1,198 1,398'" 1,48c 1,751' 1,734 2,042 29 Middle East oil-exporting countries2 . 170 155 82 8 7 7 7 8 30 Africa 19 14 12 1 3 1 2 4 0 0 0 1 1 0 0 1 31 Oil-exporting countries3 27 41 50 67 67 66 76 98 32 All other4 Commercial liabilities 3,245 4,001 4,074 4,494 4,521 4,987 4,973 5,629 33 Europe 62 48 62 101 85 111 56 125 34 Belgium-Luxembourg 437 438 453 351 379 422 437 449 35 France 427 622 607 722 591 594 679 915 36 Germany 268 245 364 460 372 339 350 437 37 Netherlands 241 257 379 387 484 557 556 558 38 Switzerland 732 1,095 976 1,346 1,309 1,380 1,475 1,660 39 United Kingdom 40 Canada 1,841 1,975 1,449 1,393 1,352 1,253 1,263 1,285 41 Latin America and Caribbean 11,,447733 1,871 1,088 890 1,089 1,037 1,050 862 42 Bahamas 11 7 12 32 28 13 22 19 43 Bermuda 67 114 77 132 297 245 223 165 44 Brazil 44 124 58 61 82 88 40 46 45 British West Indies 6 32 44 48 88' 63' 44 20 46 Mexico 585 586 430 213 185 160 231 189 47 Venezuela 432 636 212 217 224 203 176 162 48 Asia 6,741 5,285 6,046 5,098 5,818 5,921 6,516 6,566 49 Japan ... 1,247 1,256 1,799 2,051 2,468 2,480 2,422 2,579 50 Middle East oil-exporting countries2'3 4,178 2,372 2,829 1,686 1,948 1,870 2,109 1,956 51 Africa 553 588 587 622 520 524 571 584 52 Oil-exporting countries3 167 233 238 197 170 166 151 135 53 AU other4 921 1,128 982 981 1,019 1,083 1,128 1,085 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • June 1988 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1986 1987 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998833 11998844 11998855 Dec. Mar. June' Sept. Dec." 1 Total 34,911 29,901 28,876 33,5^ 34,103' 31,644 31,390 29,965 2 Payable in dollars 31,815 27,304 26,574 30,989'' 31,303' 28,518 28,695 26,716 3 Payable in foreign currencies 3,0% 2,597 2,302 2,530' 2,800' 3,126 2,6% 3,249 By type 4 Financial claims 23,780 19,254 18,891 23,424r 24,149' 21,691 21,055 19,426 5 Deposits 18,4% 14,621 15,526 17,283r 17,407' 14,871 15,827 13,505 6 Payable in dollars 17,993 14,202 14,911 16,726' 16,573' 13,666 14,954 12,132 7 Payable in foreign currencies 503 420 615 557r 833' 1,205 873 1,373 8 Other financial claims 5,284 4,633 3,364 6,141' 6,742' 6,820 5,228 5,921 9 Payable in dollars 3,328 3,190 2,330 4,792r 5,400' 5,551 4,114 4,772 10 Payable in foreign currencies 1,956 1,442 1,035 1,349 1,342' 1,269 1,114 1,149 11 Commercial claims 11,131 10,646 9,986 10,095 9,954 9,953 10,335 10,539 12 Trade receivables 9,721 9,177 8,6% 8,902 8,898 8,910 9,394 9,538 13 Advance payments and other claims 1,410 1,470 1,290 1,192 1,056 1,043 942 1,001 14 Payable in dollars 10,494 9,912 9,333 9,471 9,330 9,301 9,626 9,812 15 Payable in foreign currencies 637 735 652 624 624 652 709 727 By area or country Financial claims 16 Europe 6,488 5,762 6,929 8,827' 9,403' 9,958 9,473 9,014 17 Belgium-Luxembourg 37 15 10 41 15 6 23 6 18 France 150 126 184 138 172 154 169 330 19 Germany 163 224 223 111 163 92 98 64 20 Netherlands 71 66 161 151' 132' 140 157 282 21 Switzerland 38 66 74 185' 77' 98 44 76 22 United Kingdom 5,817 4,864 6,007 7,957 8,491 9,268 8,783 8,046 23 Canada 5,989 3,988 3,260 3,%5' 3,782' 3,330 2,885 2,805 24 Latin America and Caribbean 10,234 8,216 7,846 9,209' 9,55C 7,553 7,502 6,725 25 Bahamas 4,771 3,306 2,698 2,628' 3,951' 2,588 2,518 1,865 26 Bermuda 102 6 6 6 3 6 2 2 27 Brazil 53 100 78 73 71 103 102 53 28 British West Indies 4,206 4,043 4,571 6,078 5,150' 4,404 3,687 4,351 29 Mexico 293 215 180 174 164 167 173 172 30 Venezuela 134 125 48 21' 20' 20 18 19 31 Asia 764 %1 731 1,316' 1,189' 776 1,105 760 32 Japan 297 353 475 999 931 439 737 480 33 Middle East oil-exporting countries2 4 13 4 7' 7' 6 10 10 34 Africa 147 210 103 85 84 58 71 65 35 Oil-exporting countries3 55 85 29 28 19 9 14 7 36 All other4 159 117 21 22 140 16 20 58 Commercial claims 37 Europe 3,670 3,801 3,533 3,718 3,703 3,855 4,121 4,004 38 Belgium-Luxembourg 135 165 175 133 145 137 168 175 39 France 459 440 426 410 417 437 413 588 40 Germany 349 374 346 447 451 532 551 549 41 Netherlands 334 335 284 173 165 182 199 139 42 Switzerland 317 271 284 217 196 187 205 184 43 United Kingdom 809 1,063 898 998 1,070 1,072 1,227 981 44 Canada 829 1,021 1,023 928 927 929 904 901 45 Latin America and Caribbean 2,695 2,052 1,753 1,981 1,944 1,882 1,852 2,094 46 Bahamas 8 8 13 28 11 14 12 19 47 Bermuda 190 115 93 170 157 153 125 159 48 Brazil 493 214 206 235 217 202 227 222 49 British West Indies 7 7 6 51 18' 12 13 45 50 Mexico 884 583 510 411 445 347 367 369 51 Venezuela 272 206 157 234 171 201 189 294 52 Asia 3,063 3,073 2,982 2,751 2,707 2,645 2,783 2,882 53 Japan 1,114 1,191 1,016 881 926 952 1,022 1,148 54 Middle East oil-exporting countries 737 668 638 565 529 455 436 451 55 Africa 588 470 437 495 432 379 407 406 56 Oil-exporting countries3 139 134 130 135 141 123 124 144 57 All other4 286 229 257 222 240 262 268 252 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Holdings and Transactions A65 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1988 1987 1988 Transactions, and area or country 1986 1987' Jan.- Aug. Sept. Oct. Nov. Dec. Jan. Feb." Feb. U.S. corporate securities STOCKS 1 Foreign purchases 148,114 249,072 29,258 24,807' 22,489' 30,237' 13,626 13,627 12,916 16,342 2 Foreign sales 129,395 232,849 29,611 24,579' 19,455' 27,784' 20,325 16,630 12,891 16,720 3 Net purchases, or sales (-) 18,719 16,223 -353 228' 3,034' 2,452' -6,699 -3,004 25 -378 4 Foreign countries 18,927 16,271 -289 126' 2,944' 2,438' -6,651 -2,943 56' -345 5 Europe 9,559 1,886 -550 106' 1,312 138 -5,948 -2,329 -226 -324 6 France 459 905 -124 -69 -15 58 -541 -393 -96 -29 7 Germany 341 -74 30 28 -12 380 -183 -149 67 -37 8 Netherlands 936 890 -13 135 79 -40 -169 32 -72 59 9 Switzerland 1,560 -1,163 -367 -325 435 294 -1,574 -743 -114 -253 10 United Kingdom 4,826 539 -266 15C 770 -624 -3,407 -959 -136 -130 11 Canada 816 1,048 -20 -37' -52' 252' 169 111 147 -167 12 Latin America and Caribbean 3,031 1,314 117 188 157 -512 -561 -50 -143 260 13 Middle East1 976 -1,360 -147 -255 135 569 -83 -448 104 -251 14 Other Asia 3,876 12,896 226 171 1,242 2,014 -28 -160 156 70 15 Africa 297 123 -11 16 20 7 11 -6 7 -18 16 Other countries 373 365 97 -63 132 -30 -211 -61 12 85 17 Nonmonetary international and regional organizations -208 -48 -65 102 90 15 --4488 --6611 --3322 --3333 BONDS2 18 Foreign purchases 123,169 105,823 11,457 7,099' 8,662 9,158 5,716' 6,773' 5,024' 6,433 19 Foreign sales 72,520 78,128 11,217 5,638 4,786 7,275 5,386' 5,461' 5,187' 6,031 20 Net purchases, or sales (-) 50,648 27,695 239 1,461' 3,876 1,883 33C 1,313' -163' 402 21 Foreign countries 49,801 26,955 985 1,62/f 3,836 1,874 72' 913 465' 521 22 Europe 39,313 22,176 551 1,687' 3,149 922 409 550 279' 272 73 France 389 194 64 26 -37 55 -34 -13 51 13 24 Germany -251 -8 188 -22 -56 -98 -26 17 61 127 25 Netherlands 387 269 -14 44 116 36 -16 1 -13 -1 26 Switzerland 4,529 1,651 10 306 166 136 -39 -203 -50 60 27 United Kingdom 33,900 19,934 382 1,388' 2,828 1,012 371 751 333' 49 28 Canada 548 1,296 0 -8 47 305 68 114 29 -29 29 Latin America and Caribbean 1,476 2,473 294 44 682 524 -15 292 -22 316 30 Middle East1 -2,961 -551 -240 -14 -87 42 -92 -20 -164 -76 31 Other Asia 11,270 1,606 414 -93 52 65 -254' -25 347 67 32 Africa 16 16 -22 -17 -6 24 -10 3 0 -22 33 Other countries 139 -61 -12 20 -1 -9 -33 0 -4 -8 34 Nonmonetary international and regional organizations 847 740 -746 -159 40 10 257 440000'' -627 --111199 Foreign securities 35 Stocks, net purchases, or sales (-) -2,360 1,127 -142 -401' 483' 2,089' 704' 841' 517' -659 36 Foreign purchases 49,587 95,208 10,703 8,770' 8,816' 12,974' 7,592' 4,897' 4,989' 5,714 37 Foreign sales 51,947 94,082 10,845 9,171' 8,333' 10,885' 6,889' 4,055' 4,472 6,373 38 Bonds, net purchases, or sales (-) -3,685' -7,601 -2,764 -279' -638' -2,566 -1,929 -1,379 -1,326' -1,439 39 Foreign purchases 166,992 199,121 28,663 12,350' 13,031' 18, IW 17,753' 12,433 12.81C 15,852 40 Foreign sales 170,677' 206,722 31,427 12,628' 13,669' 20,684 19,682' 13,812 14,136' 17,291 41 Net purchases, or sales (-), of stocks and bonds -6,045' -6,474 -2,906 —68C -155' -477' -1,225' -538' -sor -2,097 42 Foreign countries -7,000 -6,618 -2,992 -1,273' -476' 289' -1,125' -224' -874' -2,117 43 Europe -18,533 -11,972 -1,930 -891' -505' -926' -1,582' -381' -319' -1,611 44 Canada -876 -4,065 -1,306 -527' -274' -37' -498 107 -656 -651 45 Latin America and Caribbean 3,476 828 62 83 -20 -152 329 2 126 -63 46 10,858 9,322 -160 232' 85' 1,330' 421' 159 -197' 37 47 Africa 52 89 12 5 14 16 3 10 9 3 48 Other countries -1,977 -820 331 -176' 224' 59 201 -121 163 168 49 Nonmonetary international and regional organizations 955' 144 85 594 320 -767 -101 -314 65 20 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, ties sold abroad by U.S. corporations organized to finance direct investments Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). abroad. 2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • June 1988 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1988 1987 1988 Country or area 1986 1987 Jan.- Feb. Aug. Sept. Oct. Nov. Dec. Jan. Feb." Transactions, net purchases or sales (-) during period1 1 Estimated total2 19,388 25,755' 16,691 1,110 523 -1,232' 6,380 2,675 4,645 12,046 2 Foreign countries2 20,491 31,057' 18,535 2,787 704 -5,497' 7,676 4,290 5,740 12,794 3 Europe2 16,326 23,610 10,149 -1,007 -1,167 -954 6,340 1,282 4,321 5,827 4 Belgium-Luxembourg -245 653 711 366 -25 165 -2 -103 469 242 5 Germany 7,670 13,295 4,434 780 130 31 1,820 1,121 3,045 1,389 6 Netherlands 1,283 -911 -46 -254 -296 -707 314 -76 -337 291 7 Sweden 132 233 -35 -153 -156 4 182 51 -61 26 8 Switzerland 329 1,925 -1,070 -688 -99 -609 -297 -522 118 -1,188 9 United Kingdom 4,546 3,955 4,273 -431 -985 -642 3,163 1,200 -101 4,373 10 Other Western Europe 2,613 4,479 1,857 -631 259 804 1,158 -391 1,179 678 11 Eastern Europe 0 -19 26 4 5 0 3 1 9 16 12 Canada 881 4,534 915 378 203 -389 679 720 356 559 13 Latin America and Caribbean 926 -2,146 849 -675 -29 -117 472 -141 219 629 14 Venezuela -96 150 -1 30 55 -63 35 1 0 -1 15 Other Latin America and Caribbean 1,130 -1,096 503 -49 -155 -227 367 167 184 319 16 Netherlands Antilles -108 -1,200 346 -656 72 173 69 -309 36 311 17 Asia 1,345 4,707' 6,708 4,318 1,762 -5,304' 1,476 2,429 772 5,936 18 Japan -22 877 7,974 1,839 799 -5,272 1,757 2,020 2,979 4,9% 19 Africa -54 -56 -13 -24 3 2 -29 49 -38 25 20 All other 1,067 407 -72 -204 -68 1,263 -1,260 -48 110 -182 21 Nonmonetary international and regional organizations -1,104 -5,301' -1,844 -1,677 -180 4,265 -1,296 -1,615 -1,095 -749 22 International -1,430 -4,387' -1,902 -1,722 111 4,326 -1,492 -1,620 -1,023 -879 23 Latin American regional 157 3 6 0 -10 0 0 0 8 -2 Memo 24 Foreign countries2 20,491 31,057' 18,535 2,787 704 -5,497' 7,676 4,290 5,740 12,794 25 Official institutions 14,214 31,188' 12,219 2,612 1,341' 2,466' 1,854 1,794 5,118 7,101 26 Other foreign 6,283 -135' 6,316 175 -637' -7,965' 5,822 2,497 622 5,694 Oil-exporting countries 27 Middle East3 -1,529 -3,111 -1,152 329 -509 -695 -891 368 -809 -343 28 Africa 5 16 0 0 0 -1 -1 -1 0 0 1. Estimated official and private transactions in marketable U.S. Treasury 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and securities with an original maturity of more than 1 year. Data are based on United Arab Emirates (Trucial States). monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and 4. Comprises Algeria, Gabon, Libya, and Nigeria, notes held by official institutions of foreign countries. 2. Includes U.S. Treasury notes publicly issued to private foreign residents denominated in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest and Exchange Rates A67 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Apr. 30, 1988 Rate on Apr. 30, Rate on Apr. 30, 1988 Country Country Country e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e e M ffe o c n t t i h v e Austria.. 3.0 Dec. 1987 France 7.25 Jan. 1988 Norway 8.0 June 1983 Belgium . 6.5 Mar. 1988 Germany, Fed. Rep. of 2.5 Dec. 1987 Switzerland . 2.5 Dec. 1987 Brazil ... 49.0 Mar. 1981 Italy 12.0 Aug. 1987 United Kingdom' Canada.. 9.06 Apr. 1988 Japan 2.5 Feb. 1987 Venezuela 8.0 Oct. 1985 Denmark 7.0 Oct. 1983 Netherlands 3.25 Jan. 1988 1. As of the end of February 1981, the rate is that at which the Bank of France or makes advances against eligible commercial paper and/or government comdiscounts Treasury bills for 7 to 10 days. mercial banks or brokers. For countries with more than one rate applicable to 2. Minimum lending rate suspended as of Aug. 20, 1981. such discounts or advances, the rate shown is the one at which it is understood the NOTE. Rates shown are mainly those at which the central bank either discounts central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per year, averages of daily figures 1987 1988 CCoouunnttrryy,, oorr ttyyppee 11998855 11998866 11998877 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Eurodollars 8.27 6.70 7.07 8.29 7.41 7.86 7.11 6.73 6.74 7.05 2 United Kingdom 12.16 10.87 9.65 9.92 8.87 8.71 8.84 9.18 8.83 8.25 3 Canada 9.64 9.18 8.38 9.12 8.70 8.95 8.75 8.58 8.63 8.90 4 Germany 5.40 4.58 3.97 4.70 3.92 3.65 3.40 3.29 3.38 3.37 5 Switzerland 4.92 4.19 3.67 4.03 3.65 3.51 2.09 1.48 1.61 1.83 6 Netherlands 6.29 5.56 5.24 5.63 4.99 4.65 4.24 3.98 3.97 3.98 7 France 9.91 7.68 8.14 8.15 8.66 8.48 8.19 7.54 7.89 7.99 8 Italy 14.86 12.60 11.15 11.85 11.36 11.25 10.47 10.80 11.11 10.54 9 Belgium 9.60 8.04 7.01 6.84 6.93 6.57 6.49 6.19 6.09 6.08 10 Japan 6.47 4.96 3.87 3.89 3.90 3.90 3.88 3.82 3.82 3.80 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • June 1988 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1987 1988 CCoouunnttrryy//ccuurrrreennccyy 11998855 11998866 11998877 Nov. Dec. Jan. Feb. Mar. Apr. 1 Australia/dollar2 70.026 67.093 70.136 68.60 71.06 71.11 71.40 73.29 74.80 2 Austria/schilling 20.676 15.260 12.649 11.843 11.500 11.635 11.920 11.767 11.744 3 Belgium/franc 59.336 44.662 37.357 35.190 34.186 34.576 35.473 35.126 34.962 4 Canada/dollar 1.3658 1.3896 1.3259 1.3167 1.3075 1.2855 1.2682 1.2492 1.2353 5 China, P.R./yuan 2.9434 3.4615 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 6 Denmark/krone 10.598 8.0954 6.8477 6.4962 6.3043 6.3562 6.4918 6.4261 6.4207 7 Finland/markka 6.1971 5.0721 4.4036 4.1392 4.0462 4.0391 4.1159 4.0483 4.0064 8 France/franc 8.9799 6.9256 6.0121 5.7099 5.5375 5.5808 5.7323 5.6893 5.6704 9 Germany/deutsche mark 2.9419 2.1704 1.7981 1.6821 1.6335 1.6537 1.6963 1.6770 1.6710 10 Greece/drachma 138.40 139.93 135.47 132.42 129.46 131.92 135.56 134.60 133.86 11 Hong Kong/dollar 7.7911 7.8037 7.7985 7.7968 7.7726 7.7872 7.7978 7.8028 7.8166 12 India/rupee 12.332 12.597 12.943 12.972 12.934 13.040 13.065 12.979 13.158 13 Ireland/punt 106.62 134.14 148.79 158.08 162.63 160.64 156.87 159.33 159.81 14 Italy/lira 1908.90 1491.16 1297.03 1238.89 1203.74 1216.88 1249.62 1240.67 1240.99 15 Japan/yen 238.47 168.35 144.60 135.40 128.24 127.69 129.17 127.11 124.90 16 Malay sia/ringgit 2.4806 2.5830 2.5185 2.4989 2.4944 2.5400 2.5812 2.5689 2.5743 17 Netherlands/guilder 3.3184 2.4484 2.0263 1.8931 1.8382 1.8584 1.9051 1.8837 1.8749 18 New Zealand/dollar2 49.752 52.456 59.327 61.915 64.664 65.818 66.386 66.239 66.143 19 Norway/krone 8.5933 7.3984 6.7408 6.4233 6.3820 6.3538 6.4167 6.3337 6.2140 20 Portugal/escudo 172.07 149.80 141.20 136.84 133.77 135.87 138.84 137.48 136.77 21 Singapore/dollar 2.2008 2.1782 2.1059 2.0444 2.0127 2.0261 2.0185 2.0133 2.0044 22 South Africa/rand 2.2343 2.2918 2.0385 1.9738 1.9525 1.9755 2.0529 2.1330 2.1428 23 South Korea/won 861.89 884.61 825.93 802.30 798.34 791.31 776.85 757.37 745.31 24 Spain/peseta 169.98 140.04 123.54 113.26 110.80 112.34 114.36 112.38 110.80 25 Sri Lanka/rupee 27.187 27.933 29.471 30.519 30.644 30.825 30.859 30.892 30.939 26 Sweden/krona 8.6031 7.1272 6.3468 6.0744 5.9473 5.9749 6.0524 5.9497 5.8892 27 Switzerland/franc 2.4551 1.7979 1.4918 1.3825 1.3304 1.3466 1.3916 1.3863 1.3823 28 Taiwan/dollar 39.889 37.837 31.756 29.813 29.004 28.628 28.665 28.687 28.695 29 Thailand/baht 27.193 26.314 25.774 25.495 25.249 25.235 25.324 25.232 25.171 30 United Kingdom/pound2 129.74 146.77 163.98 177.54 182.88 180.09 175.82 183.30 187.82 MEMO 31 United States/dollar3 143.01 112.22 96.94 91.49 88.70 89.29 91.08 89.73 88.95 1. Averages of certified noon buying rates in New York for cable transfers. currencies of 10 industrial countries. The weight for each of the 10 countries is the Data in this table also appear in the Board's G.5 (405) release. For address, see 1972-76 average world trade of that country divided by the average world trade of inside front cover. all 10 countries combined. Series revised as of August 1978 (see FEDERAL 2. Value in U.S. cents. RESERVE BULLETIN, vol. 64, August 1978, p. 700). 3. Index of weighted-average exchange value of U.S. dollar against the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when IPCs Individuals, partnerships, and corporations about half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 SMSAs Standard metropolitan statistical areas when the smallest unit given is millions) .... Cell not applicable General Information Minus signs are used to indicate (1) a decrease, (2) a negative obligations of the Treasury. "State and local government" figure, or (3) an outflow. also includes municipalities, special districts, and other politi- "U.S. government securities" may include guaranteed cal subdivisions. issues of U.S. government agencies (the flow of funds figures In some of the tables, details do not add to totals because of also include not fully guaranteed issues) as well as direct rounding. STATISTICAL RELEASES List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases June 1988 A87 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Assets and liabilities of commercial banks, March 31, 1987 October 1987 A70 Assets and liabilities of commercial banks, June 30, 1987 February 1988 A70 Assets and liabilities of commercial banks, September 30, 1987 April 1988 A70 Assets and liabilities of commercial banks, December 31, 1987 June 1988 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1987 August 1987 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1987 November 1987 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1987 February 1988 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1987 June 1988 A76 Terms of lending at commercial banks, February 1987 May 1987 A70 Terms of lending at commercial banks, May 1987 September 1987 A70 Terms of lending at commercial banks, August 1987 January 1988 A70 Terms of lending at commercial banks, November 1987 May 1988 A70 Pro forma balance sheet and income statements for priced service operations, June 30, 1987 November 1987 A74 Pro forma balance sheet and income statements for priced service operations, September 30,1987 . February 1988 A80 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • June 1988 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2 Consolidated Report of Condition, December 31, 1987 Millions of dollars Banks with foreign offices5-7 Bank o s f f w ic i e th s o d n o l m y8 e stic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets6 2,947,724 1,703,543 445,763 1,319,328 830,766 413,416 2 Cash and balances due from depository institutions 353,184 246,768 128,611 118,157 69,403 37,0.12 3 Cash items in process of collection, unposted debits, and currency and coin ... 79,324 1,686 77,638 29,392 4 Cash items in process of collection and unposted debits n.a. n.a. 64,969 21,095 5 Currency and coin n.a. n.a. 12,669 8,297 6 Balances due from depository institutions in the United States 36,695 23,231 13,465 22,656 7 Balances due from banks in foreign countries and foreign central banks n a. 106,983 103,480 3,503 5,339 n a. 8 Balances due from Federal Reserve Banks 23,767 214 23,552 12,017 MEMO 1 9 Noninterest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the U.S.) n.a. n.a. 7,983 13,847 12,571 10 Total securities, loans and lease financing receivables, net 2,385,209 1,298,702 n.a. n.a. 727,345 359,162 11 Total securities, book value 509,111 213,317 30,017 183,300 174,510 121,284 12 U.S. Treasury securities and U.S. government agency and corporation obligations 310,215 112,918 714 112,204 110,006 87,291 13 U.S. Treasury securities n a. 66,096 548 65,548 63,136 n a. 14 U.S. government agency and corporation obligations n a. 46,822 166 46,656 46,871 n a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 71,853 38,531 70 38,461 19,659 13,663 16 All other n.a. 8,292 96 8,196 27,212 n.a. 17 Securities issued by states and political subdivisions in the United States 119,033 50,154 754 49,400 44,311 24,567 18 Taxable 1,918 366 0 366 733 820 19 Tax-exempt 117,114 49,788 754 49,034 43,579 23,747 20 Other securities 79,863 50,245 28,549 21,696 20,193 9,426 ">1 2211,,224466 11,,441144 1199,,883322 1199,,880055 22 All holdings of private certificates of participation in pools of residential mortgages 8,084 4,179 0 4,179 2,965 941 23 All other 42,393 17,067 1,414 15,653 16,840 8,485 ">4 28,999 27,135 1,864 387 25 Federal funds sold and securities purchased under agreements to resell 128,786 58,485 330 58,156 45,294 25,007 26 Total loans and lease financing receivables, gross 1,810,697 1,070,586 221,266 849,320 521,280 218,830 27 LESS: Unearned income on loans 14,715 6,622 2,117 4,505 5,572 2,522 28 Total loans and leases (net of unearned income) 1,795,982 1,063,965 219,149 844,816 515,709 216,308 29 LESS: Allowance for loan and lease losses 48,513 36,909 n.a. n.a. 88,,116677 3,437 30 LESS: Allocated transfer risk reserves 156 156 n.a. n.a. 11 0 31 EQUALS: Total loans and leases, net 1,747,312 1,026,899 n.a. n.a. 507,541 212,871 Total loans, gross, by category 32 Loans secured by real estate 591,217 280,732 17,103 263,629 210,345 100,140 33 Construction and land development A 79,429 32,248 7,831 34 Farmland t t 1,617 4,065 8,773 35 1-4 family residential properties n.a. n.a. n.a. 101,784 99,056 55,249 36 Multifamily (5 or more) residential properties | i 1 9,520 6,157 2,063 37 Nonfarm nonresidential properties T t 71,279 68,819 26,224 38 Loans to depository institutions 63,775 57,406 26,942 30,464 5,392 977 39 To commercial banks in the United States n .a. 23,003 951 22,052 4,491 n.a. 40 To other depository institutions in the United States n .a. 4,163 366 3,797 767 n.a. 41 To banks in foreign countries n.a. 30,241 25,625 4,616 135 n.a. 42 Loans to finance agricultural production and other loans to farmers 29,366 5,576 325 5,251 6,307 17,483 43 Commercial and industrial loans 586,616 410,185 108,374 301,811 128,908 47,523 44 To U.S. addressees (domicile) n .a. 313,410 15,125 298,284 128,516 n.a. 45 To non-U.S. addressees (domicile) n .a. 96,775 93,249 3,527 392 n.a. 46 Acceptances of other banks 4,938 1,171 361 810 2,028 1,739 47 U.S. banks n .a. 369 32 338 n.a. n .a. 48 Foreign banks n .a. 801 329 472 n.a. n.a. 49 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 330,675 148,678 12,475 136,203 136,474 45,522 50 Credit cards and related plans 88,232 45,216 n.a. n.a. 40,626 2,391 51 Other (includes single payment and installment) 242,443 103,463 n.a. n.a. 95,848 43,132 52 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 52,310 32,256 558 31,698 17,610 2,444 53 Taxable 1,374 451 0 451 809 114 54 Tax-exempt 50,936 31,804 558 31,246 16,801 2,330 55 All other loans 120,877 108,539 50,573 57,967 9,940 2,397 56 Loans to foreign governments and official institutions n.a. 39,011 36,454 2,557 222 n .a. 57 Other loans n.a. 69,529 14,119 55,410 9,717 n .a. 58 Loans for purchasing and carrying securities n.a. n.a. n.a. 14,277 1,905 n .a. 59 All other loans n .a. n.a. n.a. 41,133 7,812 n.a. 60 Lease financing receivables 30,923 26,043 4,554 21,489 4,276 604 61 Assets held in trading accounts 32,396 31,827 14,445 17,382 409 160 62 Premises and fixed assets (including capitalized leases) 44,482 23,221 4 n.a. 13,954 7,307 63 Other real estate owned 11,032 4,757 I n.a. 3,537 2,738 64 Investments in unconsolidated subsidiaries and associated companies 2,320 1,585 1 n.a. 681 54 65 Customers' liability on acceptances outstanding 37,575 37,121 n.a. n.a. 429 25 66 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs ... n.a. n.a. 40,357 n.a. n.a. 67 Intangible assets 4,444 3,002 1 n.a. 1,273 169 68 Other assets 76,921 56,559 t n.a. 13,574 6,788 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20 Continued Banks with foreign offices3'4 Bank o s f f w ic i e th s o d n o l m y5 e stic Total Total Foreign Domestic Over 100 Under 100 69 Total liabilities, limited-life preferred stock, and equity capital 2,947,724 1,703,543 830,766 70 Total liabilities7 2,770,244 1,620,311 446,361 1,235,497 771,895 71 Limited-life preferred stock 84 67 n.a. n.a. 15 72 Total deposits 2,294,832 1,240,736 340,582 900,154 685,438 73 Individuals, partnerships, and corporations 186,962 802,899 622,684 74 U.S. government 3,051 1,856 75 States and political subdivisions in the United States 37,218 41,272 76 Commercial banks in the United States 32,814 11,109 77 Other depository institutions in the United States 4,459 2,467 78 Banks in foreign countries 7,888 143 79 Foreign governments and official institutions 28,472 26,755 1,718 303 80 Certified and official checks 19,194 10,745 637 10,108 5,604 81 All other8 n.a. 126,229 82 Total transaction accounts 324,808 209,942 83 Individuals, partnerships, and corporations 269,675 183,697 84 U.S. government 2,100 1,371 85 States and political subdivisions in the United States 8,929 10,560 86 Commercial banks in the United States 21,911 7,044 87 Other depository institutions in the United States 3,821 1,590 88 Banks in foreign countries 7,211 72 89 Foreign governments and official institutions 1,052 5 90 Certified and official checks 10,108 5,604 91 Mother 92 Demand deposits (included in total transaction accounts) 256,945 136,937 58,176 93 Individuals, partnerships, and corporations 203,577 115,485 50,947 94 U.S. government 2,078 1,348 587 95 States and political subdivisions in the United States 7,188 5,7% 2,589 96 Commercial banks in the United States 21,911 7,043 818 97 Other depository institutions in the United States 3,821 1,585 378 98 Banks in foreign countries 7,210 72 n.a. 99 Foreign governments and official institutions 1,052 5 n.a. 100 Certified and official checks 10,108 5,604 2,845 101 All other 12 102 Total nontransaction accounts 575,346 475,4% 264,571 103 Individuals, partnerships, and corporations 533,223 438,987 243,449 104 U.S. government 951 485 206 105 States and political subdivisions in the United States 28,289 30,713 18,904 106 Commercial banks in the United States 10,903 4,065 1,239 107 U.S. branches and agencies of foreign banks 594 221 n.a. 108 Other commercial banks in the United States 10,309 3,844 n.a. 109 Other depository institutions in the United States 638 877 748 110 Banks in foreign countries 677 71 n.a. 111 Foreign branches of other U.S. banks 11 6 n.a. 112 Other banks in foreign countries 666 65 n.a. 113 Foreign governments and official institutions 665 298 n.a. 114 Mother 25 115 Federal funds purchased and securities sold under agreements to repurchase.. 234,654 183,594 777 182,817 47,985 3,074 116 Demand notes issued to the U.S. Treasury n.a. n.a. n.a. 13,537 3,482 524 117 Other borrowed money 98,901 76,365 31,627 44,738 21,571 966 118 Banks liability on acceptances executed and outstanding 37,721 37,267 7,216 30,051 429 25 119 Notes and debentures subordinated to deposits 17,423 14,769 n.a. n.a. 2,219 435 120 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs... n.a. n.a. n.a. 21,191 n.a. n.a. 121 M other liabilities 69,169 54,042 n.a. n.a. 10,770 4,357 122 Total equity capital9 177,396 83,165 n.a. n.a. 58,855 35,376 MEMO 123 Holdings of commercial paper included in total loans, gross 2,309 1,493 816 1,457 n.a. 124 Total individual retirement accounts (IRA) and Keogh plan accounts 34,364 32,763 16,048 125 Total brokered deposits 27,344 4,797 683 126 Total brokered retail deposits 6,827 2,878 515 127 Issued in denominations of $100,000 or less 934 2,161 458 128 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 5,892 717 58 Savings deposits 129 Money market deposit accounts (MMDAs) 167,695 126,948 54,427 130 Other savings deposits (excluding MMDAs) 71,520 68,710 34,472 131 Total time deposits of less than $100,000 146,326 184 131,352 132 Time certificates of deposit of $100,000 or more 162,874 92,272 42,766 133 Open-account time deposits of $100,000 or more 26,931 3,983 1,553 134 All NOW accounts (including Super NOW) 63,380 70,212 44,035 135 Total time and savings deposits 643,209 548,501 310,481 Quarterly averages 136 Total loans 813,120 502,809 212,131 137 Obligations (other than securities) of states and political subdivisions in the United States 32,924 17,514 n.a. 138 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 67,079 70,351 44,534 Nontransaction accounts in domestic offices 139 Money market deposit accounts (MMDAs) 166,555 128,186 54,924 140 Other savings deposits 71,522 69,574 34,361 141 Time certificates of deposit of $100,000 or more 157,970 90,983 41,630 142 All other time deposits 170,839 183,953 131,807 143 Number of banks 13,516 253 n.a. 2,294 10,%9 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • June 1988 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-3 Consolidated Report of Condition, December 31, 1987 Millions of dollars Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,150,094 1,747,994 1,380,937 367,058 402,099 2 Cash and balances due from depository institutions 187,561 157,141 123,875 33,265 30,420 3 Cash items in process of collection and unposted debits 86,064 78,461 61,719 16,742 7,603 4 Currency and coin 20,966 17,563 14,584 2,979 3,403 5 Balances due from depository institutions in the United States 36,120 24,741 20,508 4,233 11,379 6 Balances due from banks in foreign countries and foreign central banks 8,842 6,629 5,211 1,417 2,213 7 Balances due from Federal Reserve Banks 35,569 29,747 21,853 7,894 5,822 8 Total securities, loans and lease financing receivables, (net of unearned income) 1,821,785 1,467,792 1,172,936 294,856 353,993 9 Total securities, book value 357,811 276,476 215,865 60,612 81,334 10 U.S. Treasury securities 128,684 99,753 79,593 20,159 28,931 11 U.S. government agency and corporation obligations 93,527 70,953 56,913 14,039 22,575 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 58,120 48,691 38,333 10,358 9,429 13 All other 35,407 22,262 18,580 3,682 13,145 14 Securities issued by states and political subdivisions in the United States 93,711 74,654 55,153 19,500 19,058 15 1,099 774 600 175 324 16 Tax-exempt 92,613 73,879 54,554 19,326 18,733 17 Other domestic securities 39,637 29,107 23,514 5,594 10,530 18 All holdings of private certificates of participation in pools of residential mortgages 7,143 5,720 3,241 2,480 1,423 19 All other 32,494 23,387 20,273 3,114 9,107 20 Foreign securities 2,251 2,010 691 1,319 241 21 Federal funds sold and securities purchased under agreements to resell 103,450 86,445 66,371 20,074 17,005 22 Total loans and lease financing receivables, gross 1,370,601 1,112,565 896,597 215,968 258,036 23 LESS: Unearned income on loans 10,076 7,694 5,897 1,798 2,382 24 Total loans and leases (net of unearned income) 1,360,524 1,104,871 890,701 214,170 255,653 Total loans, gross, by category 25 Loans secured by real estate 473,974 364,221 309,686 54,535 109,753 26 Construction and land development 111,678 91,840 75,693 16,147 19,838 27 Farmland 5,682 3,856 3,401 455 1,826 28 1-4 family residential properties 200,840 151,180 129,051 22,129 49,661 29 Multifamily (5 or more) residential properties 15,676 12,338 10,794 1,543 3,338 30 Nonfarm nonresidential properties 140,098 105,007 90,747 14,260 35,091 31 Loans to commercial banks in the United States 26,542 23,117 18,538 4,580 3,425 32 Loans to other depository institutions in the United States 4,563 4,289 3,451 838 274 33 Loans to banks in foreign countries 4,750 4,664 2,366 2,298 86 34 Loans to finance agricultural production and other loans to farmers 11,558 9,328 8,267 1,061 2,230 35 Commercial and industrial loans 430,719 356,974 278,278 78,696 73,745 36 To U.S. addressees (domicile) 426,800 353,418 275,366 78,052 73,383 37 To non-U.S. addressees (domicile) 3,919 3,556 2,912 644 363 38 Acceptances of other banks10 2,838 2,007 1,759 249 830 39 Of U.S. banks 884 732 615 116 152 40 Of foreign banks 691 573 526 47 118 41 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 272,677 221,524 180,838 40,686 51,153 42 Loans to foreign governments and official institutions 2,779 2,658 1,880 777 122 43 Obligations (other than securities) of states and political subdivisions in the United States 49,308 41,298 30,794 10,504 8,010 44 1,260 769 645 124 491 45 48,047 40,529 30,149 10,380 7,519 46 Other loans 65,127 59,337 42,029 17,308 5,790 47 Loans for purchasing and carrying securities 16,182 14,525 9,391 5,135 1,657 48 All other loans 48,945 44,812 32,638 12,174 4,133 49 Lease financing receivables 25,765 23,147 18,711 4,436 2,617 50 Customers' liability on acceptances outstanding 29,553 28,349 20,351 7,997 1,204 51 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 40,357 36,927 25,583 11,344 3,430 52 111,196 94,713 63,774 30,939 16,482 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.21 Continued Members Total National State 53 Total liabilities and equity capital 2,150,094 1,747,994 1,380,937 367,058 54 Total liabilities7 2,007,392 1,634,433 1,292,424 342,009 55 Total deposits 1,585,592 1,255,155 1,007,579 247,576 56 Individuals, partnerships, and corporations 1,425,582 1,124,643 906,343 218,300 57 U.S. government 4,907 4,039 3,479 560 58 States and political subdivisions in the United States 78,490 59,666 49,871 9,794 59 Commercial banks in the United States 43,923 39,346 29,821 9,525 60 Other depository institutions in the United States 6,926 5,597 4,119 1,478 61 Banks in foreign countries 8,031 7,324 4,061 3,263 62 Foreign governments and official institutions 2,020 1,797 833 963 63 Certified and official checks 15,712 12,745 9,053 3,692 64 Total transaction accounts 534,750 437,953 343,370 94,583 65 Individuals, partnerships, and corporations 453,372 366,205 290,406 75,799 66 U.S. government 3,471 2,831 2,371 460 67 States and political subdivisions in the United States 19,488 15,980 13,067 2,913 68 Commercial banks in the United States 28,955 27,501 20,765 6,735 69 Other depository institutions in the United States 5,411 4,776 3,429 1,347 70 Banks in foreign countries 7,283 6,909 3,810 3,100 71 Foreign governments and official institutions 1,057 1,007 470 537 72 Certified and official checks 15,712 12,745 9,053 3,692 73 Demand deposits (included in total transaction accounts) 393,882 329,555 252,418 77,137 74 Individuals, partnerships, and corporations 319,062 262,788 203,579 59,209 75 U.S. government 3,426 2,791 2,335 456 76 States and political subdivisions in the United States 12,984 11,042 8,979 2,063 77 Commercial banks in the United States 28,954 27,500 20,765 6,735 78 Other depository institutions in the United States 5,405 4,774 3,427 1,347 79 Banks in foreign countries 7,281 6,908 3,810 3,098 80 Foreign governments and official institutions 1,056 1,007 470 537 81 Certified and official checks 15,712 12,745 9,053 3,692 82 Total nontransaction accounts 1,050,842 817,202 664,209 152,993 83 Individuals, partnerships, and corporations 972,210 758,438 615,937 142,501 84 U.S. government 1,436 1,208 1,108 99 85 States and political subdivisions in the United States 59,002 43,686 36,804 6,881 86 Commercial banks in the United States 14,968 11,845 9,055 2,790 87 U.S. branches and agencies of foreign banks 815 161 96 65 88 Other commercial banks in the United States 14,153 11,684 8,960 2,725 89 Other depository institutions in the United States 1,515 821 690 131 90 Banks in foreign countries 748 415 252 163 91 Foreign branches of other U.S. banks 17 12 2 10 92 Other banks in foreign countries 731 403 250 153 93 Foreign governments and official institutions 963 790 363 426 94 Federal funds purchased and securities sold under agreements to repurchase 230,802 209,853 162,129 47,723 95 Demand notes issued to the U.S. Treasury 17,019 15,525 12,729 2,796 96 Other borrowed money 66,309 57,675 43,552 14,123 97 Banks liability on acceptances executed and outstanding 30,480 29,276 21,242 8,034 98 Notes and debentures subordinated to deposits 2,219 1,365 1,241 125 99 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 21,191 18,000 13,793 4,207 100 Remaining liabilities 74,970 65,584 43,952 21,632 101 Total equity capital9 142,702 113,561 88,513 25,048 MEMO 102 Holdings of commercial paper included in total loans, gross 2,273 1,771 1,500 271 103 Total individual retirement accounts (IRA) and Keogh plan accounts 67,127 52,232 43,255 8,977 104 Total brokered deposits 32,142 26,604 22,016 4,587 105 Total brokered retail deposits 9,705 7,089 6,137 952 106 Issued in denominations of $100,000 or less 3,096 2,039 1,898 142 107 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 6,609 5,050 4,239 810 Savings deposits 108 Money market deposit accounts (MMDAs) 294,643 233,940 189,726 44,215 109 Other savings accounts 140,230 108,212 84,539 23,673 110 Total time deposits of less than $100,000 329,910 247,338 208,980 38,358 111 Time certificates of deposit of $100,000 or more 255,146 200,695 162,822 37,873 112 Open-account time deposits of $100,000 or more 30,914 27,017 18,143 8,874 113 All NOW accounts (including Super NOW accounts) 133,593 102,746 85,714 17,032 114 Total time and savings deposits 1,191,710 925,601 755,162 170,439 Quarterly averages 115 Total loans 1,315,930 1,066,214 856,586 209,628 116 Obligations (other than securities) of states and political subdivisions in the United States ... 50,438 42,626 31,564 11,062 117 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 137,430 106,383 87,529 18,854 Nontransaction accounts 118 Money market deposit accounts (MMDAs) 294,741 234,091 190,312 43,778 119 Other savings deposits 141,096 108,480 85,531 22,949 120 Time certificates of deposit of $100,000 or more 248,953 195,958 159,230 36,729 121 All other time deposits 354,793 270,161 223,360 46,801 122 Number of banks 2,547 1,481 1,253 228 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • June 1988 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1 Consolidated Report of Condition, December 31, 1987 Millions of dollars Members NNoonn-- Item Total mmeemmbbeerrss Total National State 1 Total assets6 2,563,509 1,920,847 1,522,006 398,842 642,662 2 Cash and balances due from depository institutions 224,573 172,992 137,040 35,953 51,581 3 Currency and coin 24,807 19,188 15,910 3,278 5,619 4 Noninterest-bearing balances due from commercial banks 34,401 19,188 16,050 3,138 15,214 5 Other 165,364 134,616 105,079 29,537 30,748 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,184,384 1,619,038 1,2%,083 322,955 565,346 7 Total securities, book value 479,094 324,924 255,399 69,526 154,170 8 U.S. Treasury securities and U.S. government agency and corporation obligations 309,501 205,186 164,474 40,711 104,316 9 Securities issued by states and political subdivisions in the United States 118,279 84,423 63,157 21,266 33,856 10 Taxable 1,918 1,079 855 224 839 11 Tax-exempt 116,360 83,344 62,301 21,042 33,017 12 Other securities 51,314 35,316 27,768 7,548 15,999 13 All holdings of private certificates of participation in pools of residential mortgages .. 8,084 6,166 3,542 2,624 1,918 14 All other 43,230 29,149 24,226 4,924 14,081 15 Federal funds sold and securities purchased under agreements to resell 128,457 97,919 76,003 21,916 30,538 16 Total loans and lease financing receivables, gross 1,589,430 1,204,988 971,457 233,531 384,442 17 LESS: Unearned income on loans 12,598 8,794 6,776 2,018 3,804 18 Total loans and leases (net of unearned income) 1,576,833 1,1%, 194 964,681 231,513 380,638 Total loans, gross, by category 19 Loans secured by real estate 574,114 406,167 343,648 62,519 167,947 20 Construction and land development 119,508 95,232 78,453 16,779 24,276 21 Farmland 14,455 6,857 5,807 1,050 7,597 22 1-4 family residential properties 256,090 174,771 148,010 26,760 81,319 23 Multifamily (5 or more) residential properties 17,739 13,216 11,513 1,702 4,524 24 Nonfarm nonresidential properties 166,322 116,091 99,864 16,227 50,231 25 Loans to depository institutions 36,833 32,567 24,805 7,762 4,266 26 Loans to finance agricultural production and other loans to farmers 29,041 15,716 13,325 2,391 13,324 27 Commercial and industrial loans 478,242 378,006 295,301 82,705 100,236 28 Acceptances of other banks 4,577 2,804 2,441 363 1,773 29 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 318,199 241,064 1%,720 44,345 77,135 30 Obligations (other than securities) of states and political subdivisions in the United States 51,752 42,273 31,613 10,660 9,478 31 Nonrated industrial development obligations 1,374 817 683 133 557 32 Other obligations (excluding securities) 50,378 41,456 30,930 10,527 8,921 33 All other loans 70,304 63,024 44,721 18,304 7,280 34 Lease financing receivables 26,368 23,366 18,884 4,483 3,002 35 Customers' liability on acceptances outstanding 29,577 28,359 20,359 8,000 1,218 36 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 40,357 36,927 25,583 11,344 3,430 37 Remaining assets 124,975 100,458 68,525 31,934 24,517 38 Total liabilities and equity capital 2,563,509 1,920,847 1,522,006 398,842 642,662 39 Total liabilities7 2,385,430 1,792,698 1,421,761 370,937 592,731 40 Total deposits 1,954,250 1,409,152 1,133,629 275,524 545,097 41 Individuals, partnerships, and corporations 1,761,326 1,265,218 1,021,377 243,840 496,108 42 U.S. government 5,723 4,369 3,753 616 1,353 43 States and political subdivisions in the United States 104,512 69,562 58,032 11,530 34,950 44 Commercial banks in the United States 45,981 40,685 30,858 9,827 5,297 45 Other depository institutions in the United States 8,061 6,159 4,599 1,559 1,902 46 Certified and official checks 18,558 14,020 10,097 3,923 4,538 47 All other 10,089 9,139 4,912 4,227 949 48 Total transaction accounts 638,836 481,602 379,267 102,335 157,234 49 Individuals, partnerships, and corporations 545,667 404,852 322,242 82,610 140,815 50 U.S. government 4,081 3,069 2,565 503 1,012 51 States and political subdivisions in the United States 26,606 18,653 15,283 3,370 7,953 52 Commercial banks in the United States 29,774 28,130 21,216 6,915 1,644 53 Other depository institutions in the United States 5,798 4,955 3,579 1,376 843 54 Certified and official checks 18,558 14,020 10,097 3,923 4,538 55 All other 8,352 7,923 4,286 3,638 429 56 Demand deposits (included in total transaction accounts) 452,059 354,574 272,886 81,689 97,484 57 Individuals, partnerships, and corporations 370,008 284,509 221,392 63,118 85,499 58 U.S. government 4,013 3,023 2,526 497 990 59 States and political subdivisions in the United States 15,573 12,023 9,799 2,224 3,550 60 Commercial banks in the United States 29,773 28,130 21,215 6,915 1,643 61 Other depository institutions in the United States 5,784 4,948 3,573 1,375 836 62 Certified and official checks 18,558 14,020 10,097 3,923 4,538 63 All other 8,350 7,922 4,285 3,636 428 64 Total nontransaction accounts 1,315,413 927,550 754,362 173,188 387,863 65 Individuals, partnerships, and corporations 1,215,659 860,366 699,136 161,230 355,293 66 U.S. government 1,642 1,301 1,188 113 341 67 States and political subdivisions in the United States 77,906 50,909 42,749 8,160 26,997 68 Commercial banks in the United States 16,207 12,555 9,643 2,912 3,653 69 Other depository institutions in the United States 2,263 1,204 1,020 184 1,059 70 All other 1,736 1,216 626 590 520 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22 Continued Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 71 Federal funds purchased and securities sold under agreements to repurchase 233,876 211,446 163,331 48,115 22,430 72 Demand notes issued to the U.S. Treasury 17,544 15,765 12,921 2,844 1,799 73 Other borrowed money 67,274 58,268 43,931 14,337 9,006 74 Banks liability on acceptances executed and outstanding 30,505 29,286 21,249 8,037 1,218 75 Notes and debentures subordinated to deposits 2,654 1,433 1,302 131 1,221 76 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 21,191 18,000 13,793 4,207 3,191 77 Remaining liabilities 79,327 67,348 45,399 21,949 11,979 78 Total equity capital9 178,079 128,149 100,245 27,904 49,931 MEMO 79 Assets held in trading accounts10 17,951 17,708 10,166 7,542 242 80 U.S. Treasury securities 8,806 8,785 4,313 4,472 21 81 U.S. government agency corporation obligations 3,088 3,088 1,797 1,291 0 82 Securities issued by states and political subdivisions in the United States 2,443 2,435 1,648 787 7 83 Other bonds, notes and debentures 193 193 73 120 0 84 Certificates of deposit 646 631 562 69 15 85 Commercial paper 75 75 75 0 0 86 Bankers acceptances 1,674 1,630 1,233 398 44 87 Other 802 796 397 399 6 88 Total individual retirement accounts (IRA) and Keogh plan accounts 83,174 58,634 48,520 10,114 24,540 89 Total brokered deposits 32,825 26,921 22,271 4,650 5,904 90 Total brokered retail deposits 10,220 7,311 6,313 998 2,909 91 Issued in denominations of $100,000 or less 3,553 2,228 2,051 177 1,326 92 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 6,667 5,083 4,262 821 1,584 Savings deposits 93 Money market deposit accounts (MMDAs) 349,071 257,830 209,298 48,532 91,241 94 Other savings deposits 174,702 122,651 96,039 26,611 52,051 95 Total time deposits of less than $100,000 461,262 299,149 251,157 47,992 162,113 96 Time certificates of deposit of $100,000 or more 297,912 220,365 179,283 41,081 77,547 97 Open-account time deposits of $100,000 or more 32,467 27,556 18,584 8,972 4,911 98 All NOW accounts (including Super NOW) 177,628 120,758 100,629 20,129 56,870 99 Total time and savings deposits 1,502,191 1,054,578 860,743 193,835 447,613 Quarterly averages 100 Total loans 1,528,061 1,155,806 929,226 226,580 372,255 101 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 181,963 124,494 102,513 21,981 57,470 Nontransaction accounts 102 Money market deposit accounts (MMDAs) 349,665 258,211 210,087 48,124 91,454 103 Other savings deposits 175,457 122,845 96,982 25,863 52,612 104 Time certificates of deposit of $100,000 or more 290,583 215,080 175,229 39,851 75,503 105 All other time deposits 486,599 321,985 265,639 56,346 164,614 106 Number of banks 13,516 5,663 4,572 1,091 7,853 1. Effective Mar. 31, 1984, the report of condition was substantially revised 5. The 'over 100' column refers to those respondents whose assets, as of June for commercial banks. Some of the changes are as follows: (1) Previously, banks 30 of the previous calendar year, were equal to or exceeded $100 million. (These with international banking facilities (IBFs) that had no other foreign offices were respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column considered domestic reporters. Beginning with the Mar. 31, 1984 call report these refers to those respondents whose assets, as of June 30 of the previous calendar banks are considered foreign and domestic reporters and must file the foreign and year, were less than $100 million. (These respondents filed the FFIEC 034 call domestic report of condition; (2) banks with assets greater than $1 billion have report.) additional items reported; (3) the domestic office detail for banks with foreign 6. Since the domestic portion of allowances for loan and lease losses and offices has been reduced considerably; and (4) banks with assets under $25 million allocated transfer risk reserve are not reported for banks with foreign offices, the have been excused from reporting certain detail items. components of total assets (domestic) will not add to the actual total (domestic). 2. The "n.a." for some of the items is used to indicate the lesser detail 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not available from banks without foreign offices, the inapplicability of certain items to reported for banks with foreign offices, the components of total liabilities (foreign) banks that have only domestic offices and/or the absence of detail on a fully will not add to the actual total (foreign). consolidated basis for banks with foreign offices. 8. The definition of 'all other' varies by report form and therefore by column 3. All transactions between domestic and foreign offices of a bank are in this table. See the instructions for more detail. reported in "net due from" and "net due to." All other lines represent 9. Equity capital is not allocated between the domestic and foreign offices of transactions with parties other than the domestic and foreign offices of each bank. banks with foreign offices. Since these intraoffice transactions are nullified by consolidation, total assets and 10. Components of assets held in trading accounts are only reported for banks total liabilities for the entire bank may not equal the sum of assets and liabilities with total assets of $1 billion or more; therefore the components will not add to the respectively, of the domestic and foreign offices. totals for this item. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in U.S. territories and possessions; subsidiaries in foreign countries; all offices of Edge act and agreement corporations wherever located and IBFs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • June 1988 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1987 Millions of dollars All states2 New York California Illinois IItteemm inc T I l B o u F t d a s i l n g o IB nl F y s 3 inc T IB l o u F t d a s i l n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g o IB nl F y s 3 1 Total assets4 460,787 233,338 339,119 185,850 69,427 30,329 29,244 10,688 2 Claims on nonrelated parties 423,279 192,650 314,591 153,767 61,367 25,743 29,244 9,952 3 Cash and balances due from depository institutions 109,616 90,659 92,059 7755,,998855 88,,994488 88,,228855 66,,997700 55,,554499 4 Cash items in process of collection and unposted debits 368 0 342 0 6 0 6 0 5 Currency and coin (U.S. and foreign) 24 n.a. 18 n.a. 2 n.a. 2 n.a. 6 Balances with depository institutions in United States 60,168 4444,,448877 4499,,221166 3366,,005544 55,,551155 44,,993355 44,,448822 33,,115599 7 U.S. branches and agencies of other foreign banks (including their IBFs) 52,875 42,176 43,143 3333,,995522 55,,112244 44,,886611 33,,990044 33,,005555 8 Other depository institutions in United States (including their IBFs) 7,293 2,311 6,074 22,,110022 391 74 578 104 9 Balances with banks in foreign countries and with foreign central banks 47,086 46,171 40,738 39,930 3,360 3,350 2,404 2,390 10 Foreign branches of U.S. banks 2,239 22,,119911 22,,000044 11,,996622 105 104 111199 111144 11 Other banks in foreign countries and foreign central banks 44,848 43,981 38,734 37,968 3,256 3,246 2,285 2,276 12 Balances with Federal Reserve Banks 1,970 n.a. 1,746 n.a. 65 n.a. 76 n.a. 13 Total securities and loans 252,841 94,432 174,572 71,821 42,321 16,352 20,691 4,026 14 Total securities, book value 33,033 9,823 26,227 7,387 4,406 2,116 1,258 215 15 U.S. Treasury 5,695 n.a. 5,329 n.a. 149 n.a. 125 n.a. 16 Obligations of U.S. government agencies and corporations 3,604 n.a. 3,562 n.a. 41 n.a. 0 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 23,733 9,823 17,336 7,387 4,215 2,116 1,133 215 18 Federal funds sold and securities purchased under agreements to resell 18,095 3,080 16,553 2,648 967 265 231 95 19 U.S branches and agencies of other foreign banks .... 11,078 1,564 9,992 1,233 822 235 132 65 20 Commercial banks in United States 4,124 651 3,892 638 61 10 69 0 21 Other 2,893 865 2,669 778 85 20 30 30 22 Total loans, gross 220,001 84,685 148,454 64,473 37,989 14,274 19,439 3,811 23 Less: Unearned income on loans 193 76 109 39 73 37 6 0 24 Equals: Loans, net 219,808 84,609 148,345 64,434 37,916 14,236 19,433 3,811 Total loans, gross, by category 25 Real estate loans 14,312 171 7,118 136 3,051 29 1,988 0 26 Loans to depository institutions 67,308 48,998 48,943 33,850 12,819 10,693 3,976 3,152 27 Commercial banks in United States (including IBFs) . 34,801 18,359 24,987 11,493 7,289 5,235 2,267 1,500 28 U.S. branches and agencies of other foreign banks . 30,494 17,346 21,208 10,716 6,902 5,054 2,164 1,444 29 Other commercial banks in United States 4,307 11,,001144 33,,777788 777 387 181 110033 5566 30 Other depository institutions in United States (including IBFs) 110 47 66 38 10 0 25 0 31 Banks in foreign countries 32,397 30,592 23,891 22,319 5,520 5,458 1,684 1,652 32 Foreign branches of U.S. banks 1,030 942 822 736 146 145 61 61 33 Other banks in foreign countries 31,367 29,650 23,068 21,583 5,374 5,313 1,623 1,591 34 Other financial institutions 6,101 829 3,847 747 1,056 43 910 28 35 Commercial and industrial loans 108,573 18,518 68,156 15,619 19,223 2,178 12,058 404 36 U.S. addressees (domicile) 85,680 174 49,493 164 16,470 10 11,548 0 37 Non-U.S. addressees (domicile) 22,893 18,344 18,663 15,455 2,753 2,168 510 404 38 Acceptances of other banks 723 30 627 24 51 0 6 6 39 U.S. banks 186 0 126 0 35 0 0 0 40 Foreign banks 537 30 501 24 16 0 6 6 41 Loans to foreign governments and official institutions (including foreign central banks) 17,618 15,857 15,328 1133,,889977 11,,331122 11,,227755 246 221 42 Loans for purchasing or carrying securities (secured and unsecured) 2,994 33 2,606 32 354 0 0 0 43 All other loans 2,373 249 1,830 169 123 56 255 0 44 All other assets 42,727 4,479 31,407 3,313 9,130 842 1,353 282 45 Customers' liability on acceptances outstanding 30,223 n.a. 21,769 n.a. 7,290 n.a. 664 n.a. 46 U.S. addressees (domicile) 19,349 n.a. 11,891 n.a. 6,631 n.a. 627 n.a. 47 Non-U.S. addressees (domicile) 10,874 n.a. 99,,887799 n.a. 659 n.a. 3377 nn..aa.. 48 Other assets including other claims on nonrelated parties 12,505 4,479 9,638 3,313 1,841 842 689 282 49 Net due from related depository institutions5 37,508 40,688 24,528 3322,,008833 88,,006600 44,,558855 00 773366 50 Net due from head office and other related depository institutions5 37,508 n.a. 24,528 n.a. 88,,006600 n.a. 00 nn..aa.. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 40,688 n.a. 32,083 n.a. 4,585 n.a. 736 52 Total liabilities4 460,787 233,338 339,119 185,850 69,427 30,329 29,244 10,688 53 Liabilities to nonrelated parties 401,710 212,420 309,629 171,541 62,059 27,548 16,372 7,185 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies All 4.30 Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c I l B o u t F d a s i l n g o IB nl F y s 3 ex T c I l B o u t F d a s i l n g o IB nl F y s 3 ex T c I l B o u t F d a s i l n g o IB nl F y s 3 ex T c I l B o u t F d a s i l n g o IB nl F y s 3 54 Total deposits and credit balances 60,042 164,825 49,910 147,718 1,923 9,049 3,152 3,026 55 Individuals, partnerships, and corporations 47,004 13,404 37,801 9,283 1,807 439 2,562 30 56 U.S. addressees (domicile) 36,715 298 30,816 2% 500 0 2,368 0 57 Non-U.S. addressees (domicile) 10,289 13,106 6,984 8,987 1,307 439 194 30 58 Commercial banks in United States (including IBFs) . 8,298 54,319 7,686 47,442 12 4,674 564 1,651 59 U.S. branches and agencies of other foreign banks . 3,858 46,180 3,336 40,156 6 4,184 503 1,374 60 Other commercial banks in United States 4,440 8,139 4,350 7,286 6 489 61 277 61 Banks in foreign countries 2,004 87,659 1,916 81, 889 16 3,884 2 1,327 62 Foreign branches of U.S. banks 231 8,325 231 7,598 0 454 0 198 63 Other banks in foreign countries 1,773 79,334 1,685 74,291 16 3,430 2 1,129 64 Foreign governments and official institutions (including foreign central banks) 1,277 9,326 1,194 8,987 15 52 2 1177 65 All other deposits and credit balances 1,005 117 937 116 48 0 3 0 66 Certified and official checks 454 n.a. 376 n.a. 26 n.a. 18 n a. 67 Transaction accounts and credit balances (excluding IBFs) 5,959 5,008 179 220055 68 Individuals, partnerships, and corporations 3,619 2,902 143 180 69 U.S. addressees (domicile) 2,101 1,711 8888 176 70 Non-U .S. addressees (domicile) 1,519 1,191 5555 4 71 Commercial banks in United States (including IBFs) . 434 427 1 0 72 U.S. branches and agencies of other foreign banks . 61 61 0 0 73 Other commercial banks in United States 373 n.a. 366 n.a. 1 n.a. 0 n.a. 74 Banks in foreign countries 995 934 6 2 75 Foreign branches of U.S. banks 46 46 0 0 76 Other banks in foreign countries 950 889 6 2 77 Foreign governments and official institutions (including foreign central banks) 335588 228888 1 2 78 All other deposits and credit balances 99 8811 2 3 79 Certified and official checks 454 376 26 18 80 Demand deposits (included in transaction accounts and credit balances) 4,779 4,040 112244 119922 81 Individuals, partnerships, and corporations 3,080 2,564 90 167 82 U.S. addressees (domicile) 1,823 1,531 53 163 83 Non-U.S. addressees (domicile) 1,257 1,033 38 4 84 Commercial banks in United States (including IBFs) . 67 61 1 0 85 U.S. branches and agencies of other foreign banks . 7 6 0 0 86 Other commercial banks in United States 60 n.a. 54 n.a. 1 n.a. 0 n.a. 87 Banks in foreign countries 817 757 6 2 88 Foreign branches of U.S. banks 1 11 0 0 89 Other banks in foreign countries 816 775555 6 2 90 Foreign governments and official institutions (including foreign central banks) 300 223311 11 2 91 All other deposits and credit balances 61 52 00 3 92 Certified and official checks 454 376 26 18 93 Non-transaction accounts (including MMDAs, excluding IBFs) 54,083 44,903 1,745 2,946 94 Individuals, partnerships, and corporations 43,385 34,899 1,664 2,382 95 U.S. addressees (domicile) 34,615 29,106 412 2,192 96 Non-U.S. addressees (domicile) 8,770 5,794 1,251 190 97 Commercial banks in United States (including IBFs) . 7,864 7,259 11 564 98 U.S. branches and agencies of other foreign banks . 3,796 3,276 6 503 99 Other commercial banks in United States 4,068 n.a. 3,984 n.a. 5 n.a. 60 n.a. 100 Banks in foreign countries 1,009 982 10 0 101 Foreign branches of U.S. banks 185 185 0 0 102 Other banks in foreign countries 824 797 10 0 103 Foreign governments and official institutions (including foreign central banks) 919 990066 1133 00 104 All other deposits and credit balances 906 857 46 1 105 IBF deposit liabilities 164,825 147,718 9,049 3,026 106 Individuals, partnerships, and corporations 13,404 9,283 439 30 107 U.S. addressees (domicile) 298 296 0 0 108 Non-U.S. addressees (domicile) 13,106 8,987 439 30 109 Commercial banks in United States (including IBFs) . 54,319 47,442 4,674 1,651 no U.S. branches and agencies of other foreign banks . 46,180 40,156 4,184 1,374 111 Other commercial banks in United States n.a. 8,139 n a. 7,286 n.a. 489 n a. 277 112 Banks in foreign countries 87,659 81,889 3, 884 1,327 113 Foreign branches of U.S. banks 8,325 7,598 454 198 114 Other banks in foreign countries 79,334 74,291 3,430 1,129 115 Foreign governments and official institutions (including foreign central banks) 9,326 8,987 5522 1177 116 All other deposits and credit balances 117 116 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • June 1988 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1987'—Continued Millions of dollars All states2 New York California Illinois IItteemm inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 117 Federal funds purchased and securities sold under agreements to repurchase 37,161 3,733 27,531 2,605 7,815 946 1,465 136 118 U.S. branches and agencies of other foreign banks ... 11,413 1,855 7,177 1,058 3,2% 684 760 /0 119 Other commercial banks in United States 9,865 269 5,733 136 3,565 133 461 0 170 Other 15,883 1,609 14,621 1,410 954 129 243 66 121 Other borrowed money 96,288 39,987 52,786 18,300 33,459 16,8% 7,547 3,775 122 Owed to nonrelated commercial banks in United States (including IBFs) 62,478 15,552 32,475 4,636 24,000 9,464 4,027 823 123 Owed to U.S. offices of nonrelated U.S. banks 27,223 2,644 17,032 851 7,697 1,490 1,885 77 124 Owed to U.S. branches and agencies of nonrelated foreign banks 35,255 12,908 15,443 3,785 16,303 7,974 2,142 /46 125 Owed to nonrelated banks in foreign countries 22,638 21,946 11,916 11,279 7,363 7,347 2,968 2,943 126 Owed to foreign branches of nonrelated U.S. banks .. 3,089 3,032 1,171 1,124 1,585 1,580 286 28b 127 Owed to foreign offices of nonrelated foreign banks... 19,548 18,914 10,744 10,155 5,778 5,767 2,681 2,657 128 Owed to others 11,172 2,490 8,396 2,386 2,095 85 552 10 129 All other liabilities 43,394 3,874 31,684 2,918 9,813 656 1,183 248 130 Branch or agency liability on acceptances executed and outstanding 33,563 n.a. 2233,,779944 n.a. 88,,559900 n.a. 667700 n.a. 131 Other liabilities to nonrelated parties 9,831 3,874 7,890 2,918 1,223 656 513 248 132 Net due to related depository institutions5 59,077 20,918 29,490 14,309 7,368 2,781 12,872 3,504 133 Net due to head office and other related depository institutions5 59,077 n. a. 29,490 n. a. 7,368 n.a. 12,872 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 20,918 n.a. 14,309 n.a. 2,781 n.a. 3,504 MEMO 135 Non-interest bearing balances with commercial banks in United States 2,854 6 2,611 6 102 0 59 0 136 Holding of commercial paper included in total loans 1,095 898 87 104 137 Holding of own acceptances included in commercial and industrial loans 2,629 1,649 < 730 i 111100 138 Commercial and industrial loans with remaining maturity of one year or less 60,966 35,952 11,713 8,026 139 Predetermined interest rates 37,723 n.a. 21,146 n.a. 8,721 n.a. 5,002 n.a. 140 Floating interest rates 23,243 14,805 2,992 3,024 141 Commercial and industrial loans with remaining maturity of more than one year 47,607 32,205 7,509 4,032 147 Predetermined interest rates 15,895 10,103 3,232 1,709 143 Floating interest rates 31,712 22,102 4,277 2,323 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 4.30 Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c IB l o u t F d a s i l ng o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l ng o IB nl F y s 3 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 69,664 1 60,687 1 1,615 1 3,177 I 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 40,682 33,786 1,112 2,315 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 111144447777 TTTTiiiimmmmeeee oooo rrrr CCCC mmmm DDDDssss oooo rrrr iiii eeee nnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 9,062 nI.a. 8,272 358 369 wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn n 1 .a. n 1 .a. n1.a. 11112222 mmmmoooonnnntttthhhhssss 19,920 18,629 145 493 All states2 New York California Illinois inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F y s 3 in T c I l B o u t F d a s i l n g o IB nl F y s 3 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 3377,,113300 9,528 3300,,772211 7,250 44,,003377 1,956 11,,224455 216 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 5566,,776655 n.a. 3300,,442266 n.a. 2222,,229955 n.a. 22,,777766 n.a. 550022 222299 112222 5511 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data are reported for that item, either because the item is not an "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign eligible IBF asset or liability or because that level of detail is not reported for Banks." Details may not add to totals because of rounding. This form was first IBFs. From December 1981 through September 1985, IBF data were included in used for reporting data as of June 30, 1980, and was revised as of December 31, all applicable items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FR 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G.ll, last issued on footnote 5). On the former monthly branch and agency report, available through July 10, 1980. Data in this table and in the G.ll tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefore, total asset and total liability figures in this table are not items. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Board of Governors ALAN GREENSPAN, Chairman MARTHA R. SEGER MANUEL H. JOHNSON, Vice Chairman WAYNE D. ANGELL OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director LYNN SMITH FOX, Special Assistant to the Board CHARLES J. SIEGMAN, Senior Associate Director BOB STAHLY MOORE, Special Assistant to the Board DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser DONALD B. ADAMS, Assistant Director LEGAL DIVISION PETER HOOPER III, Assistant Director KAREN H. JOHNSON, Assistant Director MICHAEL BRADFIELD, General Counsel RALPH W. SMITH, JR., Assistant Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel RICHARD M. ASHTON, Associate General Counsel OLIVER IRELAND, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS RICKI R. TIGERT, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel MICHAEL J. PRELL, Director EDWARD C. ETTIN, Deputy Director JARED J. ENZLER, Associate Director OFFICE OF THE SECRETARY THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director WILLIAM W. WILES, Secretary ELEANOR J. STOCKWELL, Associate Director BARBARA R. LOWREY, Associate Secretary MARTHA BETHEA, Deputy Associate Director JAMES MCAFEE, Associate Secretary PETER A. TINSLEY, Deputy Associate Director MARK N. GREENE, Assistant Director MYRON L. KWAST, Assistant Director DIVISION OF CONSUMER SUSAN J. LEPPER, Assistant Director AND COMMUNITY AFFAIRS MARTHA S. SCANLON, Assistant Director DAVID J. STOCKTON, Assistant Director JOYCE K. ZICKLER, Assistant Director GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) ELLEN MALAND, Assistant Director DOLORES S. SMITH, Assistant Director DIVISION OF MONETARY AFFAIRS DIVISION OF BANKING DONALD L. KOHN, Director SUPERVISION AND REGULATION DAVID E. LINDSEY, Deputy Director BRIAN F. MADIGAN, Assistant Director WILLIAM TAYLOR, Staff Director RICHARD D. PORTER, Assistant Director DON E. KLINE, Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board FREDERICK M. STRUBLE, Associate Director WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director OFFICE OF THE INSPECTOR GENERAL RICHARD SPILLENKOTHEN, Deputy Associate Director HERBERT A. BIERN, Assistant Director BRENT L. BOWEN, Inspector General JOE M. CLEAVER, Assistant Director ANTHONY CORNYN, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 and Official Staff H. ROBERT HELLER EDWARD W. KELLEY, JR. OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES S. DAVID FROST, Staff Director THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director PORTIA W. THOMPSON, Equal Employment Opportunity Programs Officer DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF HUMAN RESOURCES MANAGEMENT CLYDE H. FARNSWORTH, JR., Director DAVID L. SHANNON, Director ELLIOTT C. MCENTEE, Associate Director JOHN R. WEIS, Associate Director DAVID L. ROBINSON, Associate Director ANTHONY V. DIGIOIA, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director JOSEPH H. HAYES, JR., Assistant Director CHARLES W. BENNETT, Assistant Director FRED HOROWITZ, Assistant Director JACK DENNIS, JR., Assistant Director EARL G. HAMILTON, Assistant Director JOHN H. PARRISH, Assistant Director OFFICE OF THE CONTROLLER LOUISE L. ROSEMAN, Assistant Director FLORENCE M. YOUNG, Adviser GEORGE E. LIVINGSTON, Controller STEPHEN J. CLARK, Assistant Controller (Programs and Budgets) DARRELL R. PAULEY, Assistant Controller (Finance) DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director OFFICE OF THE EXECUTIVE DIRECTOR FOR INFORMATION RESOURCES MANAGEMENT ALLEN E. BEUTEL, Executive Director STEPHEN R. MALPHRUS, Associate Director DIVISION OF HARDWARE AND SOFTWARE SYSTEMS BRUCE M. BEARDSLEY, Director THOMAS C. JUDD, Assistant Director ELIZABETH B. RIGGS, Assistant Director ROBERT J. ZEMEL, Assistant Director DIVISION OF APPLICATIONS DEVELOPMENT AND STATISTICAL SERVICES WILLIAM R. JONES, Director DAY W. RADEBAUGH, Assistant Director RICHARD C. STEVENS, Assistant Director PATRICIA A. WELCH, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Bulletin • June 1988 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL H. ROBERT HELLER EDWARD W. KELLEY, JR. ROBERT P. BLACK W. LEE HOSKINS ROBERT T. PARRY ROBERT P. FORRESTAL MANUEL H. JOHNSON MARTHA R. SEGER ALTERNATE MEMBERS ROGER GUFFEY THOMAS C. MELZER THOMAS M. TIMLEN SILAS KEEHN FRANK E. MORRIS STAFF DONALD L. KOHN, Secretary and Economist J. ALFRED BROADDUS, JR., Associate Economist NORMAND R.V. BERNARD, Assistant Secretary JOHN M. DAVIS, Associate Economist ROSEMARY R. LONEY, Deputy Assistant Secretary RICHARD G. DAVIS, Associate Economist MICHAEL BRADFIELD, General Counsel DAVID E. LINDSEY, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel CHARLES J. SIEGMAN, Associate Economist MICHAEL J. PRELL, Economist THOMAS D. SIMPSON, Associate Economist EDWIN M. TRUMAN, Economist LAWRENCE SLIFMAN, Associate Economist JOHN H. BEEBE, Associate Economist SHEILA L. TSCHINKEL, Associate Economist PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL CHARLES T. FISHER, III, President BENNETT A. BROWN, Vice President J. TERRENCE MURRAY, First District CHARLES T. FISHER, III, Seventh District WILLARD C. BUTCHER, Second District DONALD N. BRANDIN, Eighth District SAMUEL A. MCCULLOUGH, Third District DEWALT H. ANKENY, JR., Ninth District THOMAS H. O'BRIEN, Fourth District F. PHILLIPS GILTNER, Tenth District FREDERICK DEANE, JR., Fifth District (VACANCY), Eleventh District BENNETT A. BROWN, Sixth District PAUL HAZEN, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 and Advisory Councils CONSUMER ADVISORY COUNCIL STEVEN W. HAMM, Columbia, South Carolina, Chairman EDWARD J. WILLIAMS, Chicago, Illinois, Vice Chairman NAOMI G. ALBANESE, Greensboro, North Carolina ROBERT A. HESS, Washington, D.C. STEPHEN BROBECK, Washington, D.C. ROBERT J. HOBBS, Boston, Massachusetts EDWIN B. BROOKS, JR., Richmond, Virginia RAMON E. JOHNSON, Salt Lake City, Utah JUDITH N. BROWN, Edina, Minnesota ROBERT W. JOHNSON, West Lafayette, Indiana MICHAEL S. CASSIDY, New York, New York A. J. (JACK) KING, Kalispell, Montana BETTY TOM CHU, Arcadia, California JOHN M. KOLESAR, Cleveland, Ohio JERRY D. CRAFT, Atlanta, Georgia ALAN B. LERNER, Dallas, Texas DONALD C. DAY, Boston, Massachusetts RICHARD L. D. MORSE, Manhattan, Kansas RICHARD B. DOBY, Denver, Colorado WILLIAM E. ODOM, Dearborn, Michigan RICHARD H. FINK, Washington, D.C. SANDRA R. PARKER, Richmond, Virginia NEIL J. FOGARTY, Jersey City, New Jersey SANDRA PHILLIPS, Pittsburgh, Pennsylvania STEPHEN GARDNER, Dallas, Texas JANE SHULL, Philadelphia, Pennsylvania KENNETH A. HALL, Picayune, Mississippi RALPH E. SPURGIN, Columbus, Ohio ELENA G. HANGGI, Little Rock, Arkansas LAWRENCE WINTHROP, Portland, Oregon THRIFT INSTITUTIONS ADVISORY COUNCIL JAMIE J. JACKSON, Houston, Texas, President GERALD M. CZARNECKI, Honolulu, Hawaii, Vice President ROBERT S. DUNCAN, Hattiesburg, Mississippi JOSEPH W. MOSMILLER, Baltimore, Maryland BETTY GREGG, Phoenix, Arizona JANET M. PAVLISKA, Arlington, Massachusetts THOMAS A. KINST, Hoffman Estates, Illinois LOUIS H. PEPPER, Seattle, Washington RAY MARTIN, Los Angeles, California WILLIAM G. SCHUETT, Milwaukee, Wisconsin JOE C. MORRIS, Emporia, Kansas DONALD B. SHACKELFORD, Columbus, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. Mail Stop 138, Board of Governors of the Federal Reserve $13.50 each. System, Washington, D.C. 20551. When a charge is indicat- FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated, payment should accompany request and be made to the ed at least monthly. (Requests must be prepaid.) Board of Governors of the Federal Reserve System. Payment Consumer and Community Affairs Handbook. $75.00 per from foreign residents should be drawn on a U.S. bank. year. Stamps and coupons are not accepted. Monetary Policy and Reserve Requirements Handbook. $75.00 per year. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- Securities Credit Transactions Handbook. $75.00 per year. TIONS. 1984. 120 pp. Federal Reserve Regulatory Service. 3 vols. (Contains all ANNUAL REPORT. three Handbooks plus substantial additional material.) ANNUAL REPORT: BUDGET REVIEW, 1986-87. $200.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or Rates for subscribers outside the United States are as $2.00 each in the United States, its possessions, Canada, follows and include additional air mail costs: and Mexico; 10 or more of same issue to one address, Federal Reserve Regulatory Service, $250.00 per year. $18.00 per year or $1.75 each. Elsewhere, $24.00 per Each Handbook, $90.00 per year. year or $2.50 each. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. of Part I only) 1976. 682 pp. $5.00. WELCOME TO THE FEDERAL RESERVE. BANKING AND MONETARY STATISTICS. 1941-1970. 1976. PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- 1,168 pp. $15.00. SERVE SYSTEM. August 1985. 30 pp. ANNUAL STATISTICAL DIGEST INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 1974-78. 1980. 305 pp. $10.00 per copy. 440 pp. $9.00 each. 1981. 1982. 239 pp. $ 6.50 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1982. 1983. 266 pp. $ 7.50 per copy. December 1986. 264 pp. $10.00 each. 1983. 1984. 264 pp. $11.50 per copy. 1984. 1985. 254 pp. $12.50 per copy. CONSUMER EDUCATION PAMPHLETS 1985. 1986. 231 pp. $15.00 per copy. Short pamphlets suitable for classroom use. Multiple copies 1986. 1987. 288 pp. $15.00 per copy. are available without charge. HISTORICAL CHART BOOK. Issued annually in Sept. $1.25 each in the United States, its possessions, Canada, and Consumer Handbook on Adjustable Rate Mortgages Mexico; 10 or more to one address, $1.00 each. Else- Consumer Handbook to Credit Protection Laws where, $1.50 each. Fair Credit Billing SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- Federal Reserve Glossary RIES OF CHARTS. Weekly. $21.00 per year or $.50 each in A Guide to Business Credit and the Equal Credit Opportunity the United States, its possessions, Canada, and Mexico; Act 10 or more of same issue to one address, $19.50 per year Guide to Federal Reserve Regulations or $.45 each. Elsewhere, $26.00 per year or $.60 each. How to File A Consumer Credit Complaint THE FEDERAL RESERVE ACT, and other statutory provisions If You Borrow To Buy Stock affecting the Federal Reserve System, as amended If You Use A Credit Card through April 20, 1983, with Supplements covering Series on the Structure of the Federal Reserve System amendments through August 1987. 576 pp. $7.00. The Board of Governors of the Federal Reserve System REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- The Federal Open Market Committee ERAL RESERVE SYSTEM. Federal Reserve Bank Board of Directors ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Federal Reserve Banks Regulation Z) Vol. I (Regular Transactions). 1969. 100 Organization and Advisory Committees pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address, $2.00 each. PAMPHLETS FOR FINANCIAL INSTITUTIONS FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY Short pamphlets on regulatory compliance, primarily suit- UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one able for banks, bank holding companies and creditors. address, $1.50 each. THE BANK HOLDING COMPANY MOVEMENT TO 1978: A COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to Limit of 50 copies one address, $2.25 each. INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; The Board of Directors' Opportunities in Community Rein- 10 or more to one address, $1.25 each. vestment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 The Board of Directors' Role in Consumer Law Compliance 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET Combined Construction/Permanent Loan Disclosure and INTERVENTION: A REVIEW OF THE LITERATURE, by Regulation Z Ralph W. Tryon. October 1983. 14 pp. Out of print. Community Development Corporations and the Federal Re- 135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET serve INTERVENTION: APPLICATIONS TO CANADA, GERMA- Construction Loan Disclosures and Regulation Z NY, AND JAPAN, by Deborah J. Danker, Richard A. Finance Charges Under Regulation Z Haas, Dale W. Henderson, Steven A. Symansky, and How to Determine the Credit Needs of Your Community Ralph W. Tryon. April 1985. 27 pp. Out of print. Regulation Z: The Right of Rescission 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO- The Right to Financial Privacy Act MY, by Darrell Cohen and Peter B. Clark. January Signature Rules in Community Property States: Regulation B 1984. 16 pp. Out of print. Signature Rules: Regulation B 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF Timing Requirements for Adverse Action Notices: Regula- FINANCIAL DEREGULATION, INTERSTATE BANKING, tion B AND FINANCIAL SUPERMARKETS, by Stephen A. What An Adverse Action Notice Must Contain: Regulation B Rhoades. February 1984. Out of print. Understanding Prepaid Finance Charges: Regulation Z 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- Closing the Loan: A Consumer's Guide to Mortgage Settle- LINES, AND THE LIMITS OF CONCENTRATION IN LOment Costs CAL BANKING MARKETS, by James Burke. June 1984. Refinancing Your Mortgage 14 pp. Out of print. A Consumer's Guide to Lock-Ins 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN THE UNITED STATES, by Thomas D. Simpson and Patrick M. Parkinson. August 1984. 20 pp. 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF STAFF STUDIESSummaries Only Printed in the THE LITERATURE, by John D. Wolken. November Bulletin 1984. 38 pp. Out of print. Studies and papers on economic and financial subjects that 141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAYare of general interest. Requests to obtain single copies of MENT COSTS, by William Dudley. November 1984. the full text or to be added to the mailing list for the series 15 pp. Out of print. may be sent to Publications Services. 142. MERGERS AND ACQUISITIONS BY COMMERCIAL BANKS, 1960-83, by Stephen A. Rhoades. December 1984. 30 pp. Out of print. Staff Studies 115-125 are out of print. 143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF THE ELECTRONIC FUND TRANSFER ACT: RECENT SURVEY EVIDENCE, by Frederick J. Schroeder. April 1985. 23 pp. Out of print. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- 144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON- DENCE ON COMPETITION AND PERFORMANCE IN SUMER CREDIT REGULATIONS: THE TRUTH IN LEND- BANKING MARKETS, by Timothy J. Curry and John T. ING AND EQUAL CREDIT OPPORTUNITY LAWS, by Rose. Jan. 1982. 9 pp. Gregory E. Elliehausen and Robert D. Kurtz. May 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- 1985. 10 pp. KET INTERVENTION, by Donald B. Adams and Dale 145. SERVICE CHARGES AS A SOURCE OF BANK INCOME W. Henderson. August 1983. 5 pp. Out of print. AND THEIR IMPACT ON CONSUMERS, by Glenn B. 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Canner and Robert D. Kurtz. August 1985. 31 pp. Out VENTION: JANUARY-MARCH 1975, by Margaret L. of print. Greene. August 1984. 16 pp. Out of print. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- by Thomas F. Brady. November 1985. 25 pp. garet L. Greene. October 1984. 40 pp. Out of print. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- INDEXES OF THE MONETARY AGGREGATES, by Helen VENTION: OCTOBER I98O-OCTOBER 1981, by Margaret T. Farr and Deborah Johnson. December 1985. 42 pp. L. Greene. August 1984. 36 pp. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- TERNATIONAL TRADE AND OTHER ECONOMIC VARIA- TION RESULTS, by Flint Brayton and Peter B. Clark. BLES: A REVIEW OF THE LITERATURE, by Victoria S. December 1985. 17 pp. Farrell with Dean A. DeRosa and T. Ashby McCown. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS January 1984. Out of print. IN BANKING BEFORE AND AFTER ACQUISITION, by 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- Stephen A. Rhoades. April 1986. 32 pp. DEUTSCHE MARK INTERVENTION, by Laurence R. 150. STATISTICAL COST ACCOUNTING MODELS IN BANK- Jacobson. October 1983. 8 pp. ING: A REEXAMINATION AND AN APPLICATION, by 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- John T. Rose and John D. Wolken. May 1986. 13 pp. TWEEN EXCHANGE RATES AND INTERVENTION: A 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT REVIEW OF THE TECHNIQUES AND LITERATURE, by PRICING FROM 1983 THROUGH 1985, by Patrick I. Kenneth Rogoff. October 1983. 15 pp. Mahoney, Alice P. White, Paul F. O'Brien, and Mary 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- M. McLaughlin. January 1987. 30 pp. VENTION, AND INTEREST RATES: AN EMPIRICAL IN- 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A VESTIGATION, by Bonnie E. Loopesko. November REVIEW OF THE LITERATURE, by Mark J. War- 1983. Out of print. shawsky. April 1987. 18 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis A Financial Perspective on Agriculture. 1/84. and Alice P. White. September 1987. 14 pp. Survey of Consumer Finances, 1983. 9/84. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF Bank Lending to Developing Countries. 10/84. PROPOSED CEILINGS ON CREDIT CARD INTEREST Survey of Consumer Finances, 1983: A Second Report. RATES, by Glenn B. Canner and James T. Fergus. 12/84. October 1987. 783 pp. Union Settlements and Aggregate Wage Behavior in the 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark 1980s. 12/84. J. Warshawsky. November 1987. 25 pp. The Thrift Industry in Transition. 3/85. 156. INTERNATIONAL BANKING TRENDS FOR U.S. BANKS A Revision of the Index of Industrial Production. 7/85. AND BANKING MARKETS, by James V. Houpt. April Financial Innovation and Deregulation in Foreign Industrial 1988. 47 pages. Countries. 10/85. Recent Developments in the Bankers Acceptance Market. 1/86. The Use of Cash and Transaction Accounts by American Families. 2/86. REPRINTS OF BULLETIN ARTICLES Financial Characteristics of High-Income Families. 3/86. Most of the articles reprinted do not exceed 12 pages. Prices, Profit Margins, and Exchange Rates. 6/86. Agricultural Banks under Stress. 7/86. Foreign Lending by Banks: A Guide to International and Limit of 10 copies U.S. Statistics. 10/86. Recent Developments in Corporate Finance. 11/86. U.S. International Transactions in 1986. 5/87. Foreign Experience with Targets for Money Growth. 10/83. Measuring the Foreign-Exchange Value of the Dollar. 6/87. Intervention in Foreign Exchange Markets: A Summary of Changes in Consumer Installment Debt: Evidence from the Ten Staff Studies. 11/83. 1983 and 1986 Surveys of Consumer Finances. 10/87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM' (Payment must accompany requests.) Annual noximate Date or period Weekly Releases rate release days to which data refer • Aggregate Reserves of Depository Institutions and $12.00 Thursday Week ended previous the Monetary Base. H.3 (502) [1.20] Wednesday • Actions of the Board: Applications and Reports $21.00 Friday Week ended previous Saturday Received. H.2 (501) • Assets and Liabilities of Insured Domestically $12.00 Monday Wednesday, 3 weeks earlier Chartered and Foreign Related Banking Institutions. H.8 (510) [1.25] • Changes in State Member Banks. K.3 (615) $12.00 Tuesday Week ended previous Saturday • Factors Affecting Reserves of Depository $12.00 Thursday Week ended previous Institutions and Condition Statement of Federal Wednesday Reserve Banks. H.4.1 (503) [1.11] • Foreign Exchange Rates. H.10 (512) [3.28] $12.00 Monday Week ended previous Friday • Money Stock, Liquid Assets, and Debt Measures. $21.00 Thursday Week ended Monday of H.6 (508) [1.21] previous week • Selected Borrowings in Immediately Available $12.00 Wednesday Week ended Thursday of Funds of Large Member Banks. H.5 (507) [1.13] previous week • Selected Interest Rates. H.15 (519) [1.35] $12.00 Monday Week ended previous Saturday • Weekly Consolidated Condition Report of Large $12.00 Friday Wednesday, 1 week earlier Commercial Banks, and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.28, 1.29, 1.30] Monthly Releases • Capacity Utilization: Manufacturing, Mining, 3.00 Midmonth Previous month Utilities and Industrial Materials. G.3 (402) [2.12] • Changes in Status of Banks and Branches. G.4.5 9.00 1st of month Previous month (404) • Consumer Installment Credit. G.19 (421) [1.55, 1.56] $ 3.00 5th working day of 2nd month previous month • Debits and Deposit Turnover at Commercial Banks. $ 3.00 12th of month Previous month G.6 (406) [1.22] • Finance Companies. G.20 (422) [1.51, 1.52] $ 3.00 5th working day of 2nd month previous month • Foreign Exchange Rates. G.5 (405) [3.28] $3.00 1st of month Previous month • Industrial Production. G.12.3 (414) [2.13] $ 7.00 Midmonth Previous month • Loans and Securities at all Commercial Banks. G.7 $ 3.00 3rd week of month Previous month (407) [1.23] • Major Nondeposit Funds of Commercial Banks. $ 3.00 3rd week of month Previous month G. 10 (411) [1.24] • Monthly Report of Assets and Liabilities of $ 3.00 20th of month Wednesday, 2 weeks earlier International Banking Facilities. G. 14 (416) 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The respective BULLETIN tables that report the data are designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Annual . proximate Date or period Monthly Releases—Continued rate release days to which data refer • Research Library— Recent Acquisitions. G.15 (417) Free of 1st of month Previous month charge • Selected Interest Rates. G. 13 (415) [1.35] $ 3.00 3rd working day of Previous month month Quarterly Releases • Agricultural Finance Databook. E.15 (125) $ 4.00 End of March, January, April, July, and June, September, October and December • Country Exposure Lending Survey. E.16 (126) $ 4.00 January, April, Previous 3 months July, and October • Domestic Offices, Commercial Bank Assets and $ 3.00 March, June, Previous 6 months Liabilities Consolidated Report of Condition. September, and E.3.4 (113) [1.26, 1.28] December • Flow of Funds: Seasonally Adjusted and $ 7.00 23rd of February, Previous quarter Unadjusted. Z.l (780) 1.58, 1.59 May, August, and November • Flow of Funds Summary Statistics Z.l. (788) [1.57, $2.00 15th of February, Previous quarter 1.58] May, August, and November • Geographical Distribution of Assets and Liabilities $ 2.00 15th of March, Previous quarter of Major Foreign Branches of U.S. Banks. E.ll June, September, (121) and December • Survey of Terms of Bank Lending. E.2 (111) [4.23] $2.00 Midmonth of February, May, August, and March, June, November September, and December • List of OTC Margin Stocks. E.7 (117) $ 4.00 January, April, February, May, August, and July, and November October Semiannual Releases • Balance Sheets of the U.S. Economy. C.9 (108) $ 2.00 October and April Previous year Annual Releases • Aggregate Summaries of Annual Surveys of $ .50 February End of previous June Securities Credit Extension. C.2 (101) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 Index to Statistical Tables References are to pages A3-A79 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 18-20, 70-75 Turnover, 15 Domestic finance companies, 37 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 8 Financial institutions, 26 Reserves and related items, 3, 4, 5, 12 Foreign banks, U.S. branches and agencies, 21, 76-79 Deposits (See also specific types) Nonfinancial corporations, 36 Banks, by classes, 3, 18-20, 21, 71, 73, 75 Automobiles Federal Reserve Banks, 4, 10 Consumer installment credit, 40, 41 Turnover, 15 Production, 47, 48 Discount rates at Reserve Banks and at foreign central banks and foreign countries (See Interest rates) BANKERS acceptances, 9, 23, 24 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 18-20, 70, 72, 74 (See also Foreigners) Dividends, corporate, 35 Bonds (See also U.S. government securities) EMPLOYMENT, 45 New issues, 34 Eurodollars, 24 Rates, 24 Branch banks, 21, 55, 76-79 FARM mortgage loans, 39 Business activity, nonfinancial, 44 Federal agency obligations, 4, 9, 10, 11, 31, 32 Business expenditures on new plant and equipment, 36 Federal credit agencies, 33 Business loans (See Commercial and industrial loans) Federal finance Debt subject to statutory limitation, and types and ownership of gross debt, 30 CAPACITY utilization, 46 Receipts and outlays, 28, 29 Capital accounts Treasury financing of surplus, or deficit, 28 Banks, by classes, 18, 71, 73, 75 Treasury operating balance, 28 Federal Reserve Banks, 10 Federal Financing Bank, 28, 33 Central banks, discount rates, 67 Federal funds, 6, 17, 19, 20, 21, 24, 28 Certificates of deposit, 24 Federal Home Loan Banks, 33 Commercial and industrial loans Federal Home Loan Mortgage Corporation, 33, 38, 39 Commercial banks, 16, 19, 70, 72, 74, 76 Federal Housing Administration, 33, 38, 39 Weekly reporting banks, 19-21 Federal Land Banks, 39 Commercial banks Federal National Mortgage Association, 33, 38, 39 Assets and liabilities, 18-20, 70-75 Federal Reserve Banks Commercial and industrial loans, 16, 18, 19, 20, 21, 70-75 Condition statement, 10 Consumer loans held, by type, and terms, 40, 41 Discount rates (See Interest rates) Loans sold outright, 19 U.S. government securities held, 4, 10, 11, 30 Nondeposit funds, 17 Federal Reserve credit, 4, 5, 10, 11 Number, by classes, 71, 73, 75 Federal Reserve notes, 10 Real estate mortgages held, by holder and property, 39 Federal Savings and Loan Insurance Corporation insured Time and savings deposits, 3 institutions, 26 Commercial paper, 23, 24, 37 Federally sponsored credit agencies, 33 Condition statements (See Assets and liabilities) Finance companies Construction, 44, 49 Assets and liabilities, 37 Consumer installment credit, 40, 41 Business credit, 37 Consumer prices, 44, 50 Loans, 40, 41 Consumption expenditures, 51, 52 Paper, 23, 24 Corporations Financial institutions Nonfinancial, assets and liabilities, 36 Loans to, 19, 20, 21 Profits and their distribution, 35 Selected assets and liabilities, 26 Security issues, 34, 65 Float, 4 Cost of living (See Consumer prices) Flow of funds, 42, 43 Credit unions, 26, 40. (See also Thrift institutions) Foreign banks, assets and liabilities of U.S. branches and Currency and coin, 18, 70, 72, 74 agencies, 21, 76-79 Currency in circulation, 4, 13 Foreign currency operations, 10 Customer credit, stock market, 25 Foreign deposits in U.S. banks, 4, 10, 19, 20 Foreign exchange rates, 68 DEBITS to deposit accounts, 15 Foreign trade, 54 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 55, 57, 60, 61, 62, 64 Banks, by classes, 18-21, 71, 73, 75 Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 GOLD Real estate loans—Continued Certificate account, 10 Financial institutions, 26 Stock, 4, 54 Terms, yields, and activity, 38 Government National Mortgage Association, 33, 38, 39 Type of holder and property mortgaged, 39 Gross national product, 51 Repurchase agreements, 6, 17, 19, 20, 21 Reserve requirements, 8 HOUSING, new and existing units, 49 Reserves Commercial banks, 18, 71 INCOME, personal and national, 44, 51, 52 Depository institutions, 3, 4, 5, 12 Industrial production, 44, 47 Federal Reserve Banks, 10 Installment loans, 40, 41 U.S. reserve assets, 54 Insurance companies, 26, 30, 39 Residential mortgage loans, 38 Interest rates Retail credit and retail sales, 40, 41, 44 Bonds, 24 Consumer installment credit, 41 SAVING Federal Reserve Banks, 7 Flow of funds, 42, 43 Foreign central banks and foreign countries, 67 National income accounts, 51 Money and capital markets, 24 Savings and loan associations, 26, 39, 40, 42 (See also Mortgages, 38 Thrift institutions) Prime rate, 23 Savings banks, 26, 39, 40 International capital transactions of United States, 53-67 Savings deposits (See Time and savings deposits) International organizations, 57, 58, 60, 63, 64 Securities (See also specific types) Inventories, 51 Federal and federally sponsored credit agencies, 33 Investment companies, issues and assets, 35 Foreign transactions, 65 Investments (See also specific types) N issues, 34 Banks, by classes, 18, 19, 20, 21, 26 Prices, 25 Commercial banks, 3, 16, 18-20, 39, 70 Special drawing rights, 4, 10, 53, 54 Federal Reserve Banks, 10, 11 State and local governments Financial institutions, 26, 39 Deposits, 19, 20 Holdings of U.S. government securities, 30 LABOR force, 45 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities issued by, 19, 20, 26 Loans (See also specific types) Rates on securities, 24 Banks, by classes, 18-20 Stock market, selected statistics, 25 Commercial banks, 3, 16, 18-20, 70, 72, 74 Stocks (See also Securities) Federal Reserve Banks, 4, 5, 7, 10, 11 New issues, 34 Financial institutions, 26, 39 Prices, 25 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 MANUFACTURING Capacity utilization, 46 TAX receipts, federal, 29 Production, 46, 48 Thrift institutions, 3. (See also Credit unions and Savings Margin requirements, 25 and loan associations) Member banks (See also Depository institutions) Time and savings deposits, 3, 13, 17, 18, 19, 20, 21, 71, Federal funds and repurchase agreements, 6 73, 75 Reserve requirements, 8 Trade, foreign, 54 Mining production, 48 Treasury cash, Treasury currency, 4 Mobile homes shipped, 49 Treasury deposits, 4, 10, 28 Monetary and credit aggregates, 3, 12 Treasury operating balance, 28 Money and capital market rates, 24 Money stock measures and components, 3, 13 UNEMPLOYMENT, 45 Mortgages (See Real estate loans) U.S. government balances Mutual funds, 35 Commercial bank holdings, 18, 19, 20 Mutual savings banks (See Thrift institutions) Treasury deposits at Reserve Banks, 4, 10, 28 U.S. government securities Bank holdings, 18-20, 21, 30, 70, 72, 74 Dealer transactions, positions, and financing, 32 NATIONAL defense outlays, 29 Federal Reserve Bank holdings, 4, 10, 11, 30 National income, 51 Foreign and international holdings and transactions, 10, 30, 66 OPEN market transactions, 9 Open market transactions, 9 Outstanding, by type and holder, 26, 30 PERSONAL income, 52 Rates, 24 Prices U.S. international transactions, 53-67 Consumer and producer, 44, 50 Utilities, production, 48 Stock market, 25 Prime rate, 23 Producer prices, 44, 50 VETERANS Administration, 38, 39 Production, 44, 47 Profits, corporate, 35 WEEKLY reporting banks, 19-21 Wholesale (producer) prices, 44, 50 REAL estate loans Banks, by classes, 16, 19, 20, 39, 72 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 George N. Hatsopoulos Frank E. Morris Richard N. Cooper Robert W. Eisenmenger NEW YORK* 10045 John R. Opel E. Gerald Corrigan To be announced Thomas M. Timlen Buffalo 14240 Mary Ann Lambertsen John T. Keane PHILADELPHIA 19105 Nevius M. Curtis Edward G. Boehne Peter A. Benoliel William H. Stone, Jr. CLEVELAND* 44101 Charles W. Parry W. Lee Hoskins John R. Miller William H. Hendricks Cincinnati 45201 Owen B. Butler Charles A. Cerino1 Pittsburgh 15230 James E. Haas Harold J. Swart1 RICHMOND* 23219 Robert A. Georgine Robert P. Black Hanne M. Merriman Jimmie R. Monhollon Baltimore 21203 Thomas R. Shelton Robert D. McTeer, Jr.1 Charlotte 28230 G. Alex Bernhardt Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Bradley Currey, Jr. Robert P. Forrestal Larry L. Prince Jack Guynn Delmar Harrison1 Birmingham 35283 Roy D. Terry Fred R. Herr1 Jacksonville 32231 E. William Nash, Jr. James D. Hawkins1 Miami 33152 Sue McCourt Cobb James Curry III Nashville 37203 Condon S. Bush Donald E. Nelson New Orleans 70161 Sharon A. Perlis Robert J. Musso CHICAGO* 60690 Robert J. Day Silas Keehn Marcus Alexis Daniel M. Doyle Detroit 48231 Richard T. Lindgren Roby L. Sloan1 ST. LOUIS 63166 Robert L. Virgil, Jr. Thomas C. Melzer H. Edwin Trusheim James R. Bowen Little Rock 72203 James R. Rodgers John F. Breen Louisville 40232 Lois H. Gray James E. Conrad Memphis 38101 Sandra B. Sanderson Paul I. Black, Jr. MINNEAPOLIS 55480 Michael W. Wright Gary H. Stern John A. Rollwagen Thomas E. Gainor Helena 59601 Marcia S. Anderson Robert F. McNellis KANSAS CITY 64198 Irvine O. Hockaday, Jr. Roger Guffey Fred W. Lyons, Jr. Henry R. Czerwinski Denver 80217 James C. Wilson Enis Alldredge, Jr. Oklahoma City 73125 Patience S. Latting William G. Evans Omaha 68102 Kenneth L. Morrison Robert D. Hamilton DALLAS 75222 Bobby R. Inman Robert H. Boykin Hugh G. Robinson William H.Wallace Tony J. Salvaggio1 El Paso 79999 Peyton Yates Sammie C. Clay Houston 77252 Walter M. Mischer, Jr. Robert Smith, III1 San Antonio 78295 Robert F. McDermott Thomas H. Robertson SAN FRANCISCO 94120 Robert F. Erburu Robert T. Parry Carolyn S. Chambers Carl E. Powell John F. Hoover1 Los Angeles 90051 Richard C. Seaver Thomas C. Warren2 Portland 97208 Paul E. Bragdon Angelo S. Carella1 Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett1 Seattle 98124 Carol A. Nygren Gerald R. Kelly1 * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FR1.A SSeEniRor Vice President. 2. Executive Vice President. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories ® Dallas® , Houston San Antonio April 1984 LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT plains how to use the credit laws to shop for credit, PUBLICATIONS apply for it, keep up credit ratings, and complain about an unfair deal. The Federal Reserve Board publishes a series of Protections offered by the Electronic Fund Transfer pamphlets covering individual credit laws and topics, Act are explained in Alice in Debitland. This booklet as pictured below. The series includes such subjects as offers tips for those using the new "paperless" syshow the Equal Credit Opportunity Act protects wom- tems for transferring money. en against discrimination in their credit dealings, how Copies of consumer publications are available free to use a credit card, and how to resolve a billing error. of charge from Publications Services, Mail Stop 138, The Board also publishes the Consumer Handbook Board of Governors of the Federal Reserve System, to Credit Protection Laws, a complete guide to con- Washington, D.C. 20551. Multiple copies for classsumer credit protections. This 44-page booklet ex- room use are also available free of charge. Fair Credit Billing 1 i ! ii ! Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE tains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together To promote public understanding of its regulatory with all related statutes, Board interpretations, rulfunctions, the Board publishes the Federal Reserve ings, and staff opinions. Also included is the Board's Regulatory Service, a three-volume looseleaf service list of OTC margin stocks. containing all Board regulations and related statutes, The Consumer and Community Affairs Handbook interpretations, policy statements, rulings, and staff contains Regulations B, C, E, M, Z, AA, and BB and opinions. For those with a more specialized interest in associated materials. the Board's regulations, parts of this service are For domestic subscribers, the annual rate is $200 for published separately as handbooks pertaining to mon- the Federal Reserve Regulatory Service and $75 for etary policy, securities credit, and consumer affairs. each handbook. For subscribers outside the United These publications are designed to help those who States, the price including additional air mail costs is must frequently refer to the Board's regulatory materi- $250 for the Service and $90 for each Handbook. All als. They are updated monthly, and each contains subscription requests must be accompanied by a check conversion tables, citation indexes, and a subject or money order payable to Board of Governors of the index. Federal Reserve System. Orders should be addressed The Monetary Policy and Reserve Requirements to Publications Services, Mail Stop 138, Federal Re- Handbook contains Regulations A, D, and Q plus serve Board, 20th Street and Constitution Avenue, related materials. N.W., Washington, D.C. 20551. The Securities Credit Transactions Handbook conr r- II A 1:1 \ Wrvw V ^ ^ ^H Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis