Federal Reserve Bulletin, 1988-09

VOLUME 74 • NUMBER 9 • SEPTEMBER 1988 FEDERAL RESERVE BULLETIN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Michael Bradfield • S. David Frost • Griffith L. Garwood • Donald L. Kohn • Michael J. Prell • Edwin M. Truman The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible 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 591 PERSONAL BANKRUPTCIES Extension of comment period on same-day payment of checks. This article describes the evolution of bankruptcy law, discusses the causes and effects Informal hearing held on proposed rule to of personal bankruptcy, and examines the implement the limitations placed on grandhistorical trends in bankruptcy filings, par- fathered nonbank banks by the Competitive ticularly since 1984, which marked the be- Equality Banking Act of 1987. ginning of a countercyclical upswing in the Change in Board staff. number of bankruptcy filings. 617 LEGAL DEVELOPMENTS 604 INDUSTRIAL PRODUCTION Various bank holding company, bank ser- Industrial production increased an esti- vice corporation, and bank merger orders; mated 0.4 percent in June. and pending cases. y, 607 STATEMENT TO CONGRESS 630 MEMBERSHIP OF THE BOARD OF Alan Greenspan, Chairman, Board of Gov- GOVERNORS OF THE FEDERAL ernors, reviews the recent and prospective RESERVE SYSTEM, 1913-88. monetary policy and the economic outlook, List of appointive and ex officio members. including our nation's longer-term economic objectives, the overall strategy for AI FINANCIAL AND BUSINESS STATISTICS fiscal and monetary policies needed to These tables reflect data available as of reach those objectives, and the appropriate July 28, 1988. tactics for implementing monetary policy A3 Domestic Financial Statistics within that strategic framework, before the A4 Domestic Nonfinancial Statistics Senate Committee on Banking, Housing, A5 International Statistics and Urban Affairs, July 13, 1988. A69 GUIDE TO TABULAR PRESENTATION, 614 ANNOUNCEMENTS STATISTICAL RELEASES, AND SPECIAL TABLES Appointment of John P. La Ware as a mem- - ber of the Board of Governors. A86 BOARD OF GOVERNORS AND STAFF Publication of a new handbook for the Reg- A88 FEDERAL OPEN MARKET COMMITTEE ulatory Service. AND STAFF; ADVISORY COUNCILS Two studies on managing risk in the pay- A90 FEDERAL RESERVE BOARD ments system now available. PUBLICATIONS A93 INDEX TO STATISTICAL TABLES Update to staff guidelines under Regulation AA. A95 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES Revised List of OTC Stocks Subject to Margin Regulations now available. A96 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Personal Bankruptcies Charles A. Luckett of the Board's Division of the nation was just emerging from World War II Research and Statistics prepared this article with and from the stringent controls imposed during the assistance of Nellie D. Middle ton and Wayne the war on the production of consumer goods. C. Cook. Footnotes appear at the end of the With few automobile or refrigerator purchases to article. be financed during the war years—and because restrictions also were imposed on the making of Declarations of bankruptcy by nonbusiness peti- consumer loans—the stock of consumer installtioners have risen sharply over the past 3'/2 ment debt outstanding at the end of 1945 was years, even as employment and aggregate per- only $2.5 billion, equivalent to about $16 billion sonal income registered solid growth. This rather in 1987 dollars. The consumer debt outstanding unusual countercyclical upswing in nonbusiness in 1945 summed to less than 2 percent of the bankruptcies (hereafter called "personal" bank- amount of disposable income for all U.S. houseruptcies) has generated considerable puzzlement holds; today, this aggregate debt-to-income ratio and some concern. stands at nearly 19 percent. The consumption-related debt of the house- Clearly, consumer debt has grown substanhold sector also has grown substantially during tially from its war-depressed level, and personal the current economic advance, both absolutely bankruptcies have too. From 1946 until well into and relative to disposable income, a trend that is the mid-1960s, bankruptcies rose in each year, likely a key factor underlying the rise in climbing to 190,000 cases in 1967 (chart 1). bankruptcies.1 In addition, revisions to bank- Increases were particularly large in recession ruptcy laws and changes in consumer attitudes years, but some rise occurred even in the years toward bankruptcy may have fostered a climate of strongest economic growth. The long postwar in which people regard bankruptcy as a more climb in bankruptcies finally ended in 1968 with a plausible remedy for financial problems than they drop of 18,000 cases, initiating a 12-year period once did. Despite the rising number of bankrupt- during which bankruptcies fluctuated from year cies, however, credit suppliers apparently have to year, sometimes widely, but showed no unmaintained their profit margins relatively well. derlying trend. So far, the surge in bankruptcies does not seem Bankruptcy filings then surged to new highs in to have motivated any measurable restriction on three consecutive years starting with 1980. Indithe supply of credit to consumers. This article will describe the historical trends 1. Personal bankruptcies of bankruptcy filings and the evolution of bankruptcy law, examine the causes and effects of personal bankruptcy, briefly review relevant studies, and then close with a detailed scrutiny of the trend in bankruptcies since 1984. HISTORICAL TRENDS IN BANKRUPTCY In 1946, personal bankruptcy filings totaled fewer than 9,000, which last year was about the average number of filings per week.2 In 1946, of course, Shaded areas denote periods of business recession. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 Federal Reserve Bulletin • September 1988 viduals had amassed substantial debts during the The word "bankruptcy" has its roots in the high-inflation years of the late 1970s, and the Latin words for "bench" and "break"; its literal economy endured back-to-back recessions dur- meaning is "broken bench." Under Roman law, ing the early 1980s that carried the unemploy- creditors, after gathering together and dividing ment rate from less than 6 percent to more than up the assets of a delinquent debtor, would 10 percent. Moreover, a major revision to federal physically break the debtor's workbench as a bankruptcy law took effect in the fall of 1979. punishment and perhaps as a warning to other This revision made bankruptcy a more attractive indebted tradesmen. Bankrupts were regarded as option to troubled debtors, particularly because perpetrators of fraud who deserved severe penit increased the amount of assets that could be alty; the Romans deprived bankrupts of their exempt from liquidation. Whatever the effect of civil rights, and many other societies stigmatized these various factors, bankruptcies jumped from them by requiring that they dress in a particular about 200,000 cases in 1979 to nearly 315,000 in identifying garb. 1982. This figure was even understated some- Early law, then, sought merely to establish an what in comparison with previous years because orderly means of satisfying the claims of credihusband-and-wife bankruptcies were treated as tors; neither discharge of debt nor rehabilitation two cases under the old law and as one case after of debtors constituted an element of the bankthe revisions became effective. ruptcy process as it evolved in Western societies As economic activity regained momentum in through the centuries. Not until 1705 did English 1983 and 1984, bankruptcies declined once more, law provide for remission of the debts of bankas they had during three previous cyclical up- rupts, and even then not as a humane gesture to swings. But historical patterns went awry in 1985 give the bankrupt a new start, but as a practical and 1986 when bankruptcies shot up more than means to counter the concealment of assets by 20 percent in each year despite the strength of the debtors. By assuring bankrupts that their credieconomy. The uptrend in bankruptcies slowed to tors would forswear future collection efforts if all a 10 percent rate in 1987, but the number of cases currently owned assets were surrendered, the filed totaled nearly 500,000, substantially above law created an incentive for debtors to comply. the 1982 cyclical high. Sizable additions to con- The first bankruptcy law in the United States sumer debt during the period no doubt contrib- was passed in 1800, but was repealed three years uted to the surge in bankruptcies; still, the latest later. Reflecting its heritage from English law, rise in bankruptcies, because it occurred during a the statute applied only to tradesmen, merbusiness expansion, seems larger than the eco- chants, and others in business (virtually no "connomic fundamentals would suggest. On the sumer" credit existed); it made no provision for whole, the 1985-87 surge in bankruptcies is a voluntary bankruptcy, discharge of debts, expuzzling development, one that will be addressed emption of any assets, or payment of debts out of further in later sections. future income. Equally short-lived bankruptcy laws were passed in 1842 and 1867 in response to financial panics. EVOLUTION OF BANKRUPTCY LAW After another major financial crisis in the 1890s, the Congress adopted the Bankruptcy Act The purpose and characteristics of bankruptcy of 1898, which survived, with amendments, until procedures in the United States are considerably enactment of a new statute in 1978. The 1898 act different from their antecedents in Roman law. represented a significant liberalization of bank- For most of history, bankruptcy was a procedure ruptcy practice. It brought consumer as well as imposed by creditors to confiscate and distribute commercial debtors under its wing, and exthe assets of a delinquent debtor. In more recent panded bankruptcy from a remedy that was times, U.S. bankruptcy law has been restruc- imposed by creditors to one that could be voluntured to achieve more of a balancing of the tarily sought by debtors. It provided for the interests of creditors and debtors and to provide discharge of debts that were not satisfied by debtors with a fresh start. liquidation of the debtor's assets, and also autho- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Personal Bankruptcies 593 rized state legislatures to establish categories of assets that would be exempt from the claims of creditors. Thus, at the close of the 19th century, a body of law originally designed to serve credi- In its current form, the U.S. bankruptcy code tors took on a significant aspect of debtor pro- contains five "operative" chapters (7, 9, 11, 12, tection. and 13) under which bankruptcy petitions may be The most important of several amendments to filed. Chapter 9 applies exclusively to municipalities and chapter 11 primarily to business reorgathe Bankruptcy Act was the Chandler Act in nizations. Individuals most commonly file under 1938, which established a procedure for insolvent chapters 7 or 13. Chapter 7 provides for debtors to retain their assets and to repay all "straight" bankruptcy—that is, liquidation of asor part of their obligations over a three-year I and discharge of debts—and may be used period with court protection from their crediler by business or nonbusiness petitioners. It tors. Available to employed persons with a its for about 70 percent of all bankruptcies, regular income, these court-administered repay- typically, 85 percent of chapter 7 cases are ment schedules were known as "wage-earner as nonbusiness. Chapter 13 provides for plans." the "wage-earner plans" that involve the full or Following extensive study and congressional | partial repayment of debts while assets are hearings on the functioning of the bankruptcy led from creditor action. It is limited to lals, but insofar as an individual may be a process, a revised bankruptcy code, enacted in proprietor with mostly business-related 1978 (the Bankruptcy Reform Act of 1978), took s, chapter 13 also embraces both business and effect on October 1, 1979. The code consolidated nonbusiness cases. About 95 percent of Chapter some chapters of previous law pertaining to 13 cases involve nonbusiness petitioners. Chapter business reorganizations and sought to stream- 12, added line the administration of the bankruptcy courts, to the statute in 1986, is the newest but its most sweeping changes involved personal tive section of the bankruptcy code. It bankruptcy. It erected greater protection against available to "family farmers" (as defined repossession of collateral for consumer loans and in the code) the equivalent of a chapter 13 repaymade it more difficult for creditors to elicit an ment program. Chapter 12 cases are classifed as individual's reaffirmation of a discharged debt business bankruptcies. after bankruptcy. Most important, the code introduced federal asset exemptions ($7,500 of was not less than what would have been paid to equity in a home and approximately $3,000 in them through liquidation, and that the debtor other designated assets) that were considerably would be able to make the payments contemmore generous than were most state exemptions. plated by the plan. It also permitted each individual of a married As noted, filings for personal bankruptcy shot couple to claim such exemptions, thus doubling up in 1980 and 1981. This surge in filings opened the amount of exemptions available to married a debate on whether the 1978 reforms had gone persons.3 too far, and led eventually to some retooling of Provisions for the wage-earner repayment the bankruptcy code in 1984. Courts were replans were redrafted to cover some debts that quired, for instance, to prohibit discharge of could not be discharged under "straight" bank- debts that financed eve-of-bankruptcy spending ruptcy, such as student loans, government fines sprees. Section 707(b) of the code embodied a and penalties, and loans obtained through false potentially major change, which provided that financial statements. The new code also removed the court could dismiss a discharge petition of an a provision of the old law that creditors must individual debtor if it found that the granting of approve any plan for repayment, and gave the relief would constitute "a substantial abuse." court sole discretion to accept a plan offered by a The law did not establish specific standards for petitioner. A plan was to be confirmed if the such a finding, however, and in practice the court found that it had been proposed in good substantial-abuse test has not been vigorously faith, that the amount to be paid the creditors applied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 Federal Reserve Bulletin • September 1988 CAUSES OF BANKRUPTCY variables within each state was largely unsuccessful, partly because the number of annual Reasons for the long postwar uptrend in bank- observations (12) was too few to yield reliable ruptcies and the more recent large jumps are- results. generally interpreted from one of two perspec- In the early 1980s researchers needed a worktives. Some researchers have emphasized a able model of the macroeconomic forces undermacroeconomic approach that relates the total lying national bankruptcy trends to help answer number of bankruptcy filings in a period to questions about the effects of the new federal movements in such broad economic factors as bankruptcy law. The typical approach of their the rate of unemployment and the degree of studies was to estimate the parameters of a indebtedness. Others have adopted the micro- bankruptcy model for a period ending just before economic approach of examining individual case the effective date of the law, to project bankrupthistories to identify economic and demographic cies into the subsequent period on the basis of attributes that appear to characterize bankrupt the model, and to interpret the differences beindividuals. tween actual and projected bankruptcies as the result of the alteration in the legal environment. Macroeconomic Perspective (Table 1 presents data on bankruptcy rates and some variables frequently associated with bank- Study of the broad economic forces affecting ruptcy.) bankruptcies was relatively neglected until the Some of the models to project bankruptcies 1980s, when the revisions to the federal bank- were specified in no greater detail than the earlier ruptcy code and the explosion in the number of models had been. One, for instance, simply exfilings stimulated several efforts to determine trapolated previous bankruptcy trends without how much of the rise was attributable to the new allowing for movements in economic variables; law. Earlier studies had simply observed, or another projected the normal level of bankruptdemonstrated with a rudimentary statistical cies during 1980, a year of recession, on the basis model, that the postwar uptrend in bankruptcies of the severity of declines in manufacturing emrather closely paralleled the expansion of con- ployment in 1980 relative to such declines in past sumer debt. One study, for instance, using an- recessions.6 These studies found as much as nual data for 1946-70, calculated a high statisti- three-fourths of the actual climb in bankruptcies cal correlation between the number of to be unexplained by the projection method, and bankruptcies per capita and the ratio of con- therefore attributable to changes in the law, in sumer installment debt to disposable personal the absence of other obvious explanatory facincome.4 Such a result is not especially surpris- tors. ing, in that being in debt is a necessary condition Other studies placed more emphasis on model for bankruptcy. But, without a more rigorously development by testing the explanatory power of specified model, there is no way to determine a wider variety of economic variables. One whether other factors might serve either to miti- study, by Richard Peterson and Kiyomi Aoki, gate or to intensify the effect of aggregate indebt- built upon earlier work by analyzing differences edness on total bankruptcies, or whether the among states in numbers of bankruptcies as a sensitivity of bankruptcies to changes in indebt- function of both legal and economic variables.7 edness might vary with different absolute levels Using data for two quarters, one before and one of debt burden. after the effective date of the new law, the study Another study, which examined reasons for estimated explanatory equations for the two pedifferences in bankruptcy rates among states, riods separately and in combination. In contrast attributed most of the interstate variation to to the earlier study of differences among states in differences in wage garnishment laws, and rela- bankruptcy rates, this one found a considerably tively little to different levels of debt-to-income stronger and more consistent relationship beratio and unemployment rate.5 An attempt to tween employment indicators and bankruptcy, assess the effects over time of the economic and correspondingly weaker links between gar- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Personal Bankruptcies 595 1. Bankruptcy rates and variables cited as possible factors, 1945-87 SOURCES. Administrative Office of the U.S. Courts, U.S. Depart- System, U.S. Department of Labor, and U.S. National Center for ment of Commerce, Board of Governors of the Federal Reserve Health Statistics. nishment laws and bankruptcy,8 Debt burden sharp increases in debt accounted for much of was not examined because data at the state level the steep climb in bankruptcies through the early were not available. 1960s, and that the subsequent leveling off of Another result of interest from this study was bankruptcies resulted from the slowing uptrend that the employment variables (the unemploy- in the debt-to-income ratio and from more rapid ment rate and average hours worked per week) gains in household wealth. In fact, he observed, had a much stronger influence in the post-enact- these developments should have caused the numment equation than in the pre-enactment equa- ber of bankruptcies to fall after the mid-1960s. tion, a result that may have been associated with Shepard attributed the absence of any decline to the recession that took place in 1980. The in- a vast expansion in the level of public assistance, crease in the significance of the employment which he believed was likely to make individuals variables during a recession suggests that the increasingly willing to risk the financial setbacks relationship between employment conditions and that could result in bankruptcy.10 bankruptcy may be more complex than very Perhaps the most thoroughly structured theosimple models can describe. The unemployment retical approach to the causes of bankruptcy was rate may not be significant as long as it fluc- that of K.J. Kowalewski.11 Kowalewski develuates between, say, 3 and 5 percent, but may oped an intertemporal utility-maximization begin to make a difference once it crosses some model that weighed a given consumer's prefercritical level. The level of the unemployment ences between present and future consumption rate also may interact with the change in unem- against a budget constraint imposed by the conployment, so that a high level alone may not sumer's endowment of present and future innecessarily correspond with bankruptcy rates. come (discounted to present value). A consumer Insofar as unemployment was rising sharply in could borrow against future income to increase 1980 in many areas, the sensitivity of bankrupt- current consumption or could enhance future cies to unemployment levels may have been consumption by saving part of present income. greater. Kowalewski introduced such realistic complica- The debt-to-income ratio reemerged as an im- tions as the existence of accumulated savings and portant explanatory variable in a study of annual nonequal interest rates on savings and borrowbankruptcies at the national level conducted by ing. A key complexity examined was that of Lawrence Shepard.9 Shepard concluded that the uncertainty about future income, which could Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin • September 1988 affect the terms on which lenders would make These employment characteristics were verified credit available: if actual income were to fall by two broader surveys in the 1980s: a study of short of the expected level in some future period, 1,600 bankrupt customers of four finance compaa consumer could be unable to meet that period's nies conducted by Brimmer and Company, Inc., payment obligations. and a study of 1,200 bankrupts from ten different In the empirical estimation of the model, states carried out by researchers at Purdue Kowalewski used quarterly data for 1961 through University.14 In both studies, about 80 percent of 1979, with bankruptcy filings per capita for the the bankrupts were employed when surveyed, nation as a whole as his dependent variable. As generally in blue collar jobs. The Purdue study explanatory variables, he used measures of both also observed that about 20 percent of the bank- "permanent" and "transitory" income, an inter- ruptcies involved two-income families. est rate series, and a variable for "nondiscre- Age as well as occupation and income level has tionary payments" constructed to include expen- emerged as an important factor in studies of ditures on food, utilities, and other necessities, bankruptcy petitioners. Most studies have found as well as scheduled debt payments. The model that families involved in bankruptcy were relaalso included three "portfolio" variables bearing tively young and often had more than the average upon the costs and benefits of filing for bank- number of children. The Purdue study further ruptcy: the stock of consumer durable goods and observed that persons (of any age) who were not residential structures, household liabilities, and currently married and who had children were household liquid assets, all measured in terms of twice as common among bankrupts as among constant dollars per capita. All of the variables debtors in general. except the interest rate series were statistically Some studies of individual bankrupts have significant, with expected signs and reasonable inquired into the reasons for the bankruptcy coefficients.12 declaration. Results are somewhat difficult to Inasmuch as the projections of the model interpret because some responses, such as "too through the end of 1981 accounted for a fairly much debt," might reasonably apply in virtually substantial portion of the actual numbers of every instance. In a 1971 study of the bankruptcy bankruptcy cases filed, it appeared that observ- process, David Stanley and Maijorie Girth tried able economic factors generated more of the to identify the "underlying" and "immediate" bankruptcy surge than most other researchers causes of bankruptcy from interviews with 400 had estimated. Kowalewski found that one-third former bankrupts.15 The most frequently menof the rise in bankruptcies in the two-year pro- tioned underlying cause was poor debt managejection period may have been attributable to ment, followed closely by family health reasons changes in the law; estimates of other investiga- and then by job problems, including strikes, tors had ranged from one-half to three-fourths. layoffs, and loss of overtime. The most common immediate causes triggering a bankruptcy were Microeconomic Studies threats of legal action, poor debt management, actual legal action, and the desire to avoid paying Several studies have sought to identify the certain debts. The Brimmer study likewise found causes of bankruptcy by inspecting the demo- overuse of credit, employment problems, and graphic and financial characteristics of individual medical expenses among the factors cited most bankrupts, either by examination of actual bank- often, along with marital problems, which were ruptcy petitions or by personal interview or mentioned much more frequently than they were questionnaire. The findings of these several stud- in the Stanley and Girth study. ies have been consistent in most respects. On balance, then, the various studies of indi- Studies of individual bankrupts in Michigan vidual cases agree that bankruptcy (at least and Utah in the early 1960s found that most of through the early 1980s) has been experienced them worked at lower-paying unskilled or semi- mainly by lower-income households with princiskilled manual labor, and that most were em- pal wage-earners employed as manual, often ployed at the time they filed for bankruptcy.13 unskilled, workers. Outright unemployment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Personal Bankruptcies 597 seems to have been a less critical determinant billion. The Federal Reserve figure for consumer than the researchers had anticipated, although credit outstanding at the end of 1980 was $350 job-related conditions, such as loss of overtime, billion; estimated losses from bankruptcy thus were frequently a factor. Marital problems, large amounted to about 1 percent of credit outstandmedical bills, and other personal trauma contrib- ing, a figure arguably large enough to influence uted to many of the decisions to file for bank- the behavior of lenders that typically earn beruptcy. tween 2 and 3 percent net on their consumer receivables. In assessing the implications of such a loss EFFECTS OF BANKRUPTCY rate, some caveats are in order. One is that a substantial portion of the debts discharged in The disruption that serious financial stress brings bankruptcy are owed to hospitals and other to individual lives is perhaps the major conse- claimants that are not part of the consumer credit quence of bankruptcy. It is an important concern statistics; thus the estimated 1 percent rate of for sociologists and legislators alike, but one that loss no doubt overstates actual rates of banklies outside the predominantly macroeconomic ruptcy loss.16 Moreover, since creditors are concontext of this article. This article views the cerned with their overall loan-loss experience, effects of bankruptcy as they pertain to the whether or not a particular bad debt was owed by functioning of the consumer credit markets, or a bankruptcy petitioner may not matter to the more broadly, to the major economic aggregates. creditor if the debt would have been charged off These two spheres are not entirely separate; an anyway. Only when bankruptcy results in a issue such as the impact of personal bankruptcies creditor writing off a debt that would otherwise on lender profit margins, for example, has impli- have been paid is the loss attributable in a cations for total consumer spending through its meaningful way to "bankruptcy." But according role in shaping the aggregate supply function of to findings of the Purdue studies, only about a consumer credit. quarter of the debts owed by bankrupts at the time of filing would have been recoverable in the Effects on Credit Supply absence of the bankruptcy. That is, only $1 billion of the total loss of $4 billion was truly a result of bankruptcy. A clear consensus on the effects of personal bankruptcy is that, in the long run, the losses Some data available from trade sources may from discharged debts are transmitted to all other help to illuminate the issue of how large an effect borrowers in the form of more expensive credit bankruptcy declarations have on the credit losses or reduced availablity of credit. Researchers of lenders. The American Bankers Association usually assert this conclusion on the basis of (ABA) publishes annual statistics covering net well-known economic principles, but say little loss rates on consumer lending at commercial about the process by which the market arrives at banks and also the proportion of losses associthe ultimate outcome. Two important aspects of ated with bankruptcy (table 2), a part of which, that process involve the magnitude of the effects as suggested above, would likely be written off in of bankruptcy on profits and the real-world com- any event.17 plexities faced by creditors having to assess how According to the ABA data for 1978 to 1986, bankruptcies are affecting profits and to respond banks charge off about 0.5 percent of their in an effective way. closed-end installment loans in a year, give or Several studies have attempted to estimate the take 0.1 percent; the highest loss rate, in the total amount of debts discharged in a year as a recession year 1980, was 0.63 percent. The promeasure of the cost of bankruptcy to the credit portion of losses identified with bankruptcy durindustry and, ultimately, to the economy. The ing the period ranged from 15 to 24 percent. studies by Brimmer and Company and by the Together, these statistics suggest that bankgroup at Purdue estimated bankruptcy chargeoffs ruptcy losses amounted to about 0.1 to 0.2 perin 1980 and 1981 to be about $3 ft billion to $41/4 cent of credit outstanding. Even during the re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 Federal Reserve Bulletin • September 1988 2. Losses on consumer credit extended by banks has an almost negligible impact on profitability. and the proportion of such losses Similar statistics for bank credit cards reveal due to bankruptcy, 1978-86 higher loss ratios than for closed-end lending, and somewhat higher proportions attributable to Losses net of recoveries as a Percent of bankruptcies, but they still show rather small Year percent of losses due variations from year to year in the proportion of outstandings written off in bankruptcy cases (table 2). Table 3 presents net earnings and credit loss statistics on installment loans and bank-card credit from another source, the Federal Reserve's Functional Cost Analysis (FCA).18 The credit loss ratios in the FCA are somewhat higher than the ABA estimates, but are still reasonably close and show the same patterns year to year. The loss ratios are clearly high enough relative to 1978 earnings so that substantial changes in loss expe- 1979 1980 rience could significantly affect a firm's bottom 1981 line. 1982 During the years examined, however, loss 1983 1984 rates just as clearly have not been the prime 1985 1986 determinant of variation in net earnings on closed-end installment loans. Net earnings have 1. The ABA reports data for five asset-size categories of banks, but fluctuated considerably more than have credit no overall average figure for all banks. For this table, the average for all banks was calculated by weighting the ABA's figure for each size losses for this type of lending. The largest movegroup by the proportion of total consumer installment credit (or total ment in loan losses was the increase of 0.28 bank-card credit, as appropriate) held by the given group. 2. Calculated for this table by multiplying column 1 by column 2. percentage point in 1980, which, other things n.a. Not available. equal, should have reduced net earnings by that SOURCE. American Bankers Association, Retail Bank Credit Report, issues for 1981 through 1987. amount. However, net earnings actually declined 0.86 percentage point, or three times as much. cent surge in bankruptcies, losses at commercial Similarly, big increases in profitability occurred banks due to personal bankruptcy rose only 0.05 in 1982 and 1983, but in tandem with only modpercentage point—from 0.06 in 1984 to 0.11 per- erate dips in loss rates. Then in 1984, profitability cent in 1986 (latest data available). While that eased off despite the positive influence of another performance represents an increase of 80 per- small decline in chargeoffs. Loss rates have been cent, even steeper than the rise in the number of higher on credit cards than on closed-end loans, bankruptcies nationally, the incremental loss rate and a substantial rise in credit-card losses appar- 3. Net earnings and credit losses as a percent of credit outstanding at banks with deposits of more than $200 million, 1979-86 Type of credit Installment credit Net earnings 2.74 Credit losses .39 Bank-card credit Net earnings Credit losses *: "if i'liiiii'iiii iti"' '' SOURCE. Federal Reserve Bank of New York, Functional Cost Analysis, annual issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Personal Bankruptcies 599 ently accounted for most of a drop in profitability Effects on the Economy in 1986. On the whole, however, for this type of lending also, changes in net earnings do not The foregoing discussion of the effects of bankappear closely related to the pattern of credit ruptcy on profitability has implications for issues losses. that extend beyond the operation of a credit In trying to make the leap from statistical department. Economic policymakers and regulaevidence about how bankruptcies affect profits to tors of financial institutions, for instance, might the long-run adjustments in rates and credit be concerned with the possible effects of bankterms that are indicated by theory, consideration ruptcy on economic activity and on the soundof the circumstances in which lenders have to ness of lending institutions. On both counts the make their pricing and marketing decisions may evidence suggests that such effects are small. be helpful. A surge in bankruptcies would tend to With losses due to bankruptcy apparently acreduce profits by causing larger writeoffs—but, counting for between 0.1 and 0.5 percent of as just discussed, the size of any drop in profits various types of consumer receivables at banks, would be rather small, making a creditor's re- and with consumer lending constituting less than sponse more problematic. For instance, a lender a fifth of total bank lending, even sharp increases first would have to decide whether an observed in personal bankruptcy seem unlikely to endandecline in net earnings from, say, 1.65 percent to ger the financial health of these institutions to 1.55 percent, was a development to which a any significant extent. Overall economic activity specific response was needed, and would then might be constrained if financially strapped indihave to determine whether the worsened perfor- viduals decided to repair their balance sheets by mance was attributable to bankruptcies rather cutting back on their spending, or if creditors than to some other factor. responded to rising bankruptcy losses by tight- If bankruptcy were in fact isolated as a cause ening their loan approval standards, thereby preof the increased writeoffs, the creditor would venting some credit seekers from making have to choose among several possible re- intended expenditures. But, as the earlier sponses: raise interest rate quotations across the discussion has indicated, creditors may well have board, set higher minimum standards to qualify little incentive to change lending standards in for loans, increase collateral requirements, or view of the relatively small impact of bankruptperhaps try to identify potential bankrupts more cies on earnings and the uncertain outcome of a precisely so they can be weeded out. The last shift in strategy. response would entail direct costs of its own, and In practice, the principal macroeconomic use the other alternatives could have undesirable of bankruptcy statistics has been in qualitative competitive consequences. For instance, unless assessments of the financial state of the houseother credit suppliers also opted to nudge hold sector, in which bankruptcies serve as one their interest rates up, a price-raising creditor of many barometers of the primary, but hardermight find itself losing its most creditworthy to-measure, concept of financial stress. Generapplicants. ally speaking, such variables as bankruptcies and Another factor that may deter lenders from loan delinquency rates have not been very widely responding quickly to an increase in bankrupt- or very successfully used in econometric analycies is that other developments in the economy ses of consumer behavior. They are typically, can overshadow the specific effect of bankruptcy viewed as providing supplementary rather than trends. For example, if money costs are falling, fundamental clues as to the prospective strength as they were during the mid-1980s, bottom-line of consumer demand. Nevertheless, the sharp results may be improving even if bankruptcy rise in bankruptcies since 1984 has stimulated losses are rising. If so, a lender may deliberately wider interest in the causes and consequences of choose to lower credit standards and tolerate a bankruptcy. The next section provides a detailed higher loss rate because of the enhanced profit- examination of the forces that may underlie this ability of "good" loans. recent trend. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 Federal Reserve Bulletin • September 1988 2. Bankruptcies and the burden of consumer debt Percent of disposable income Number per 1,000 persons 18 16 Consumer debt 14 RECENT TRENDS: A FURTHER LOOK fourths of all states experienced increases in bankruptcy of more than 25 percent over that What is particularly noteworthy about the surge period. Thus the recent surge does not appear in bankruptcies since 1984 is that it has occurred attributable in any significant way to special during an extended economic upswing. The rates problems in specific regions. of increase in bankruptcy for 1985 and 1986 were Several of the quantitative studies discussed unmatched in any other year since 1950 that was here cited rapid growth in consumer debt as a not a recession year. Many observers have noted key factor underlying rapid growth in bankruptthe unevenness of the current expansion, how- cies. Such results, however, were dominated by ever, citing persistently distressed conditions in the sharp upward movements in both debt and the "oil patch" states and, until very recently, bankruptcy for nearly two decades after World the centers of heavy manufacturing in the Mid- War II; movements in debt (relative to income) west. Such regions could be generating a high and bankruptcies (per capita) were less closely volume of personal bankruptcies despite the na- correlated after the mid-1960s (chart 2). Both the tion's general prosperity. debt-burden measure and bankruptcies per cap- In fact, the number of bankruptcies has risen ita fluctuated around flat trendlines during the most rapidly in the major oil-producing states. 1970s, with little uniformity in the size or timing On the other hand, subtracting these states from of movements in the two series. Such diverthe total still leaves a very rapid rate of increase gences might indicate an inherently weak relanationally. Between the second quarters of 1985 tionship between debt and bankruptcy. Or they and 1986, for instance, bankruptcies increased 36 might mean only that the relationship is inoperpercent nationally, while soaring 62 percent in ative below certain key levels or rates of increase five oil patch states (table 4). Yet, when these in the burden of debt on income. The linkage five states were excluded from the calculations, between aggregate debt and bankruptcy could the growth in bankruptcies still topped 30 percent still be strong beyond some threshhold level of between the two quarters. In fact, nearly three- debt burden, even though it is likely to be ob- 4. Bankruptcies in the United States and in major oil-] ducing states Number of cases Percent change IItteemm 1985:2 1986:2 1987:2 1985:2-1986:2 1986:2-1987:2 U.S. total 84,243 114,384 122,689 35.8 7.3 Five "oil patch" states' 8,428 13,682 16,399 62.3 19.9 Total, less oil patch states 75,815 100,702 > 106,290 32.8 5.5 1. Oklahoma, Texas, Louisiana, Colorado, and Wyoming. SOURCE. Administrative Office of the U.S. Courts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Personal Bankruptcies 601 scured by statistical tests covering periods when tion over the years in attitudes toward bankgrowth in debt has been subdued. ruptcy could have laid the groundwork for a But, as pointed out, the aggregate debt-to- more pronounced response to some other triggerincome ratio broke out of its meandering pattern ing variable, such as debt burden, whenever that and climbed quite sharply between 1984 and variable happened to move in a particular way. 1988. It rose from the level of around 14 percent The evidence for changing attitudes toward that had held during most of the previous decade, bankruptcy is largely circumstantial. However, to a record 19 percent by mid-1987. Thus, once several societal developments have seemed to again, during the current business expansion, a diminish the stigma that once attached to bankrapid rise in bankruptcies and a strong upsurge in ruptcy. The simple fact that consumer credit is debt burden have occurred together. This corre- more widely used today has made bankruptcy spondence in itself hardly proves that a close less rare, and therefore has rendered the bankcausal connection exists, but, with unemploy- rupt individual a less conspicuous figure. Cerment trending downward and household wealth tainly, too, the many revisions in the laws and and incomes growing substantially during the regulations concerning debtor rights, from the period, the growth of debt appears to be the one Truth-in-Lending Act, to restrictions on collecmajor macroeconomic force that moved in a tion tactics of creditors, to the Bankruptcy Redirection consistent with increases in bankrupt- form Act of 1978 itself, have fostered the notion cies. that bankruptcy is not necessarily a shameful Aggregate figures on debt can mask important process resulting from personal failings, but ofdistributional features that may affect bank- ten a perfectly respectable means of handling a ruptcy rates. Findings from two major surveys of situation for which the debtor may be largely consumer finances shed some light on this blameless. By the same token, the laws themissue.19 One fact these findings point up is that selves may be a reflection of changed attitudes. debt is concentrated among people with the Advertising by lawyers—which was made leincome and assets to cover it. Nevertheless, gally permissible in 1977—also has been cited by between the two survey years of 1983 and 1986, some commentators as a possible stimulant to a large increase occurred in the proportion of bankruptcies. Measurement problems also make debt that was held by people with high ratios of this notion difficult to test empirically, but Peterdebt to income (40 percent or higher). The son and Aoki attempted to do so by constructing heavily indebted category held 7 percent of the a variable based on a count of the number of debt covered in 1983's survey, but those who newspaper ads by bankruptcy attorneys in variwere in that category in 1986 held 16 percent, a ous localities. In the two quarters they studied, change that suggests that the pool of potential the variable did not help to explain differences in bankrupts may have been considerably larger in bankruptcy rates among states; nonetheless, the the latter year. Only about half of the high-debt proposition seems reasonable that such advertisrespondents in 1986 had asset holdings (including ing helps create a climate in which the declarahome equity) large enough to fully retire their tion of bankruptcy is more readily seen as a debts—considerably less than the 80 percent of legitimate response to financial distress. all debtors whose assets provided full coverage Other social factors could be contributing at of debts in 1983. least in a small way to the rise in bankruptcies. Changing attitudes toward bankruptcy may be Some surveys of individual bankrupts have suganother factor that helps to account for the gested that marital problems often play a role in accelerated pace of bankruptcy filings. This hy- bankruptcy decisions, and the divorce rate—a pothesis is not readily testable, however. Attitu- concrete, though perhaps imperfect, measure of dinal changes are difficult to measure, and be- such problems—rose steadily in the 1960s and cause they generally occur gradually, are 1970s. Inclusion of the national divorce rate by unlikely to cause sudden shifts in behavior, such Shepard in his model of bankruptcy did not as characterized the course of bankruptcy filings enhance the model's explanatory power, but two in 1985-86. On the other hand, a gradual redirec- other studies have found differences in divorce Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin • September 1988 rates among states to help account for interstate aggregate indebtedness of households from 14 to differences in the number of bankruptcies per 19 cents per dollar of disposable income. A capita.20 In any case, stability in the overall lessening of the stigma of bankruptcy and the divorce rate since 1980 seems to belie any notion evolution of a legal structure favorable to bankthat a sudden worsening of marital relations rupts have helped establish a setting in which might account for the bankruptcy activity in bankruptcy may be more readily embraced by recent years. financially strapped households. Paradoxically, the trend toward two-earner Whether the resort to bankruptcy has become families might provide some marginal boost to frequent enough to provoke a curtailment of the likelihood of bankruptcy. If people base the lending seems doubtful considering the still small levels of their spending and borrowing on the impact of bankruptcy on profit margins and the total amount of their dual incomes, interruption absence of any evidence that creditors have of either income stream could jeopardize a fami- tightened loan standards. Moreover, the stability ly's financial stability. On the other hand, it could of the debt-to-income ratio since its peak in early be argued, multiple sources of income reduce the 1987 provides some hope of moderation in bankrisk that any single employment problem will ruptcy increases—indeed, last year's 10 percent devastate a family's financial position. A lot rise (and an equivalent rate of increase early this would depend therefore on whether a family year) already represents considerable abatement treated a second income as a buffer or used it to from the previous two years. Nevertheless, the support proportionally higher levels of spending possibility that rising numbers of bankruptcies and debt. will begin to affect lending or spending patterns In sum, the rise in bankruptcies since 1984 cannot be dismissed, particularly if the current seems most readily attributable to the large ex- strength in employment and household net worth pansion of consumer debt, which has boosted the should wane. NOTES nomic Stability," Southern Economic Journal, vol. 41 (July 1974), pp. 96—102. 5. Vincent P. Apilado, Joel J. Dauten, and Douglas E. 1. The discussion of debt in this article is limited to Smith, "Personal Bankruptcies," Journal of Legal Studies, consumer debt, although home mortgage debt has also grown vol. 7 (June 1978), pp. 371-91. substantially since World War II. However, insofar as a 6. William J. Boyes and Roger L. Faith, "Some Effects of mortgage usually represents acquisition of an appreciating the Bankruptcy Reform Act of 1978," Journal of Law and asset and the mortgage lender's lien on the property is not Economics, vol. 29 (April 1986), pp. 139-49; and Charlie compromised by a mortgagee's bankruptcy, mortgage debt is Carter, "The Surge in Bankruptcies: Is the New Law Reseldom a precipitating cause of bankruptcy. Moreover, to sponsible?" Federal Reserve Bank of Atlanta, Economic include mortgage debt in a measure of debt burden without Review, vol. 67 (January 1982), pp. 20-30. taking account of rent payments in some fashion would tend 7. Richard L. Peterson and Kiyomi Aoki, "Bankruptcy to portray the household sector's financial situation as wors- Filings Before and After Implementation of the Bankruptcy ening whenever a shift away from renting to homeownership Reform Law," Journal of Economics and Business, vol. 36 was taking place. On the whole, it seemed best to compare (February 1984), pp. 95-105. bankruptcy trends with a form of debt that was generally 8. By the period studied by Peterson and Aoki, the garunsecured or collateralized by depreciating assets, a practice nishment process had been made generally less onerous than followed in most of the research reviewed later in this before both by provisions in federal law that took effect in article. 1970 and by widespread revisions at the state level. The 2. National bankruptcy statistics are compiled by the principal changes reduced the proportion of a debtor's wages Administrative Office of the U.S. Courts from case counts that could be garnished and prevented employers from firing provided by each district court. workers because their wages were subjected to garnishment. 3. At the same time, the code contained an override Some states prohibited garnishment entirely. With generally provision that /permitted states to opt out of the federal more lenient practices and with less variation among states, exemptions within a two-year period by enacting new legis- it is not surprising that garnishment laws were less of a factor lation of their own. In all, 32 states exercised this right. The in explaining state-level differences in bankruptcies in the new state exemptions were generally less liberal than the Peterson-Aoki study. federal standard, but frequently more liberal than the previ- 9. Lawrence Shepard, "Personal Failures and the Bankous state exemption had been. ruptcy Reform Act of 1978," Journal of Law and Economics, 4. Frederick C. Yeager, "Personal Bankruptcy and Eco- vol. 27 (October 1984), pp. 419-37. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Personal Bankruptcies 603 10. While the statistical results were not inconsistent with Courts of the Senate Judiciary Committee, 97 Cong. 1 Sess. such a thesis, the strong time trends characterizing both (Government Printing Office, 1981), pp. 6-38; Credit Rebankruptcies and transfer payments could reflect coincidence search Center in cooperation with Arthur D. Little, Inc. and as well as causation. And on strictly theoretical grounds, a Opinion Research Corporation, Consumers' Right to Bankgenerous system of transfer payments might be expected to ruptcy: Origins and Effects, Consumer Bankruptcy Study, serve less as a safety net to make people more comfortable Monograph 23 (Purdue University, Krannert Graduate about bankruptcy than as a buffer to help them avoid bank- School of Management, Credit Research Center, 1982), vol. 1 ruptcy. and A. Charlene Sullivan, Personal Bankruptcy: Causes, 11. K.J. Kowalewski, "Personal Bankruptcy: Theory and Costs and Benefits, Consumer Bankruptcy Study, Mono- Evidence," Federal Reserve Bank of Cleveland, Economic graph 24 (Purdue University, Krannert Graduate School of Review (Spring 1982), pp. 1-29. Management, Credit Research Center, 1982), vol. 2. 12. Another utility-maximization model of bankruptcy 15. David T. Stanley and Maijorie Girth, with the collabchoice is presented in Michelle J. White, "Personal Bank- oration of Vern Countryman and others, Bankruptcy: Probruptcy Under the 1978 Bankruptcy Code: An Economic lem, Process, Reform (Brookings Institution, 1971). Analysis," Indiana Law Journal, vol. 63 (1987-88), pp. 1-53. 16. Federal Reserve statistics on consumer credit cover White's incorporation of economic variables is less extensive commercial banks, finance companies, credit unions, savings than Kowalewski's, but her examination of legal effects is institutions (savings and loans, federal savings banks, and more direct. In contrast to Kowalewski's aggregate time- mutual savings banks), retail stores, and gasoline companies. series approach, White's model examines differences among 17. American Bankers Association, Retail Bank Credit counties in bankruptcies per capita, a framework that she Report, issues for 1981 through 1987. uses to study the effects of different levels of asset exemp- 18. Federal Reserve Bank of New York, Functional Cost tions and to look at straight bankruptcy and wage-earner Analysis, annual issues. plans separately. One conclusion of White's study is that the 19. The surveys were conducted in 1983 and 1986 by the number of bankruptcies responds about equally to differences Survey Research Center at the University of Michigan on of comparable magnitudes in exemption levels and in unem- behalf of the Federal Reserve and other sponsoring federal ployment rates. agencies, under the title "Survey of Consumer Finances." 13. Robert Dolphin, Jr., "An Analysis of Economic and Results summarized here were presented in Robert B. Avery, Personal Factors Leading to Consumer Bankruptcy," Occa- Gregory E. Elliehausen, and Arthur B. Kennickell, sional Paper 15 (Michigan State University, Graduate School "Changes in Consumer Installment Debt: Evidence from the of Business Administration, Bureau of Business and Eco- 1983 and 1986 Surveys of Consumer Finances," FEDERAL nomic Research, 1965); and Grant L. Misbach, "Personal RESERVE BULLETIN, vol. 73 (October 1987), pp. 761-78. Bankruptcy in the United States and Utah," (MBA thesis, 20. See White, "Personal Bankruptcy," and A. Charlene University of Utah, College of Business, May 1964). Sullivan and Debra Drecnik Worden, "The Law, the Econ- 14. Andrew F. Brimmer, Public Policy and the Economic omy, and Consumer Demand for Debt Relief under the Implications of Personal Bankruptcies, in Hearings on the Bankruptcy Code" (Purdue University, Krannert Graduate Bankruptcy Reform Act of 1978, before the Subcommittee on School of Management, no date). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Industrial Production Released for publication July 15 was little changed. At 136.6 percent of the 1977 annual average, the total index in June was 5.8 Industrial production increased 0.4 percent in percent higher than it was a year earlier, and for June after having risen a revised 0.5 percent in the second quarter, production advanced 43A May. The gain in June resulted from continued percent at an annual rate. strength in business equipment as well as a surge In market groups, production of consumer in electricity output, primarily for air condition- goods rose only slightly in June despite the large ing to combat the extreme heat. Excluding elec- increase in electricity for residential use. Productricity, output of consumer goods and materials tion of nondurable consumer goods excluding Ratio scale, 1977 = 100 TOTAL INDEX Products Materials MANUFACTURING Nondurable MATERIALS Nondurable Durable Durable Energy CONSUMER GOODS INTERMEDIATE PRODUCTS Business supplies Nondurable Durable / Construction supplies MOTOR VEHICLES AND PARTS FINAL PRODUCTS Defense and space 200 180 Business equipment 160 140 120 Consumer goods 100 80 All series are seasonally adjusted. Latest figures: June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

605 1977 = 100 Percentage change from preceding month Percentage change, Group 1988 1988 June 1987 1988 May June Feb. Mar. Apr. May June Major market groups Total industrial production 136.1 136.6 .0 .2 .5 .5 .4 5.8 Products, total 144.6 145.0 .5 .2 .2 .4 .3 5.2 Final products 143.4 143.8 .3 .1 .4 .6 .3 5.5 Consumer goods 132.5 132.7 .1 -.1 .5 .6 .1 4.3 Durable 125.4 125.5 -1.0 -.2 2.3 1.8 .0 6.9 Nondurable 135.1 135.3 .4 -.1 -.2 .1 .1 3.4 Business equipment.. 156.5 157.3 .8 .6 .8 1.3 .5 9.1 Defense and space 187.1 187.9 .2 -.6 -.7 -.8 .4 -.4 Intermediate products.. 149.0 149.3 .9 .3 -.5 -.2 .2 4.2 Construction supplies, 137.3 136.7 .6 -.3 .1 -.1 -.4 4.0 Materials 124.5 125.2 -.7 .3 .9 .7 .6 6.8 Major industry groups Manufacturing 141.6 141.9 .1 .4 .5 .6 .2 5.9 Durable 141.2 141.7 .4 .3 .6 1.1 .3 7.4 Nondurable 142.1 142.2 -.2 .5 .3 -.1 .1 3.9 Mining 103.4 104.0 -1.7 1.2 2.1 -1.4 .6 4.9 Utilities II 1.8 114.7 .3 -2.0 -2.2 .9 2.6 4.9 NOTE. Indexes are seasonally adjusted. electricity was sluggish. Auto assemblies in June, trast, production of business equipment continat an annual rate of 7.5 million units, were the ued to post solid gains in June, with strength in same as in May. Production of light trucks, while all major components except construction, minstill at a high level, declined last month. Output ing, and farm machinery. of home goods edged up, but has changed little, Output of construction supplies remained on balance, since the end of last year. In con- weak for the fourth successive month. Production of durable materials rose slightly in June Total industrial production—Revisions after two months of rapid advances. Nondurable Estimates as shown last month and current estimates materials were unchanged as chemicals rose further, but textiles and paper declined. Percentage change Index (1977=100) from previous In industry groups, manufacturing output rose MMoonntthh months 0.2 percent in June. Durable manufacturing was up 0.3 percent, with fabricated metals and elec- Previous Current Previous Current trical and nonelectrical machinery registering the March 134.7 134.7 .2 .2 largest gains. Production at utilities, mainly elec- April 135.5 135.4 .6 .5 May 136.0 136.1 .4 .5 tric, was up 2.6 percent, and mining output rose June 136.6 ... .4 0.6 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

607 Statement to Congress Statement by Alan Greenspan, Chairman, Board cially in manufacturing. Some strengthening also of Governors of the Federal Reserve System, was evident in business outlays for equipment, before the Committee on Banking, Housing, and especially computers, and consumer purchases Urban Affairs of the U.S. Senate, July 13, 1988. of durables, including autos. Financial markets also returned to more nor- I appreciate this opportunity to review with you mal functioning. Although trading volumes did recent and prospective monetary policy and the not regain precrash levels in many markets, price economic outlook. I would also like to provide a volatility diminished somewhat and quality difbroader perspective by discussing in some detail ferentials stayed considerably narrower than in our nation's longer-term economic objectives, the immediate aftermath of the stock market the overall strategy for fiscal and monetary poli- plunge. In response, the Federal Reserve graducies needed to reach those objectives, and the ally was able to restore its standard procedure of appropriate tactics for implementing monetary gearing open market operations to the intended policy within that strategic framework. pressure on reserve positions of depository institutions. We thereby discontinued the procedure of reacting primarily to day-to-day variations in THE ECONOMIC SETTING AND MONETARY money market interest rates that had been POLICY SO FAR IN 1988 adopted right after the stock market break. The macroeconomic setting for monetary policy As the risks of faltering economic expansion has changed in some notable respects since I and further financial market disruptions dimintestified last February. At that time, the full ished, the dangers of intensified inflationary presaftereffects of the stock market plunge on spend- sures reemerged. Utilization of labor and capital ing and financial markets were still unclear. reached the highest levels in many years, and While most members of the Federal Open Mar- hints of acceleration began to crop up in wage ket Committee were forecasting moderate and price data. Strong gains in payroll employgrowth, in view of rapid inventory building and ment that continued through the spring combined some signs of a weakening of labor demand, the with slower growth in the labor force to lower the possibility of a decline in economic activity could unemployment rate about lA percentage point, not be ruled out. To guard against this outcome, even before the strong labor market report for in the context of a firmer dollar on exchange June; the industrial capacity utilization rate markets, the Federal Reserve undertook a fur- moved up as well. In part reflecting the payroll ther modest easing of reserve pressures in late tax increase, broad measures of hourly compen- January, which augmented the more substantial sation picked up somewhat in the first quarter. easing after October 19. Short-term interest rates Prices for a wide range of domestic and imported came down another notch, and, with a delay, industrial materials and supplies rose even more helped to push the monetary aggregates higher steeply than they did last year. The price inflation within their targeted annual ranges. of finished goods has not reflected this step-up in In the event, the economy proved remarkably price increases for intermediate goods, in part as resilient to the loss of stock market wealth. productivity gains kept unit labor costs under Economic growth remained vigorous through the control. Even so, continued increases in materifirst half of the year. Continuing brisk advances als prices at the recent pace were seen as pointin exports, together with moderating growth in ing to a potential intensification in inflation more imports, supported expansion in output, espe- generally, since based on historical experience Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 Federal Reserve Bulletin • September 1988 such increases have tended to show through to imbalance. Still, further gains in our international finished goods prices. trade position should continue to provide a major In these circumstances, the Federal Reserve stimulus to real GNP growth through next year, was well aware that it should not fall behind in reflecting the lagged effects of the decline in the establishing enough monetary restraint to effec- exchange value of the dollar through the end of tively resist these inflationary tendencies. The last year. Although the month-to-month pattern System took a succession of restraining steps in our trade deficit can be expected to be erratic, from late March through late June. The shortest- the improvement in the external sector on balterm interest rates gradually rose to levels now ance over time is expected to replace much of the around highs reached last fall. Responding as reduced expansion in domestic final demands well to the unwinding of a tax-related buildup in from our consumer, business, and government liquid balances, M2 and M3 growth slowed no- sectors. ticeably after April. Employment growth is anticipated to be sub- In contrast to the shortest-maturity interest stantial, though some updrift in the unemployrates, long-term bond and mortgage rates, though ment rate may occur over the next year and a also above February lows, still remain well be- half. Capacity utilization could well top out soon, low last fall's peaks. The timely tightening of as growth in demands for manufactured goods monetary policy this spring, along with percep- slows to match that of capacity. tions of better prospects for the dollar in foreign Considering the already limited slack in availexchange markets in light of the narrowing in our able labor and capital resources, a leveling of the trade deficit, seemed to improve market confi- unemployment and capacity utilization rates is dence that inflationary excesses would be essential if more intense inflationary pressures avoided. Both bond prices and the dollar rallied are to be avoided in the period ahead. Otherwise, in June despite increases in interest rates in aggregate demand would continue growing at an several major foreign countries and jumps in unsustainable pace and would soon begin to some agricultural prices resulting from the create a destabilizing inflationary climate. Supply drought in important growing areas. conditions for materials and labor would tighten further, and costs would start to rise more rap- THE ECONOMIC OUTLOOK AND idly; businesses would attempt to recoup profit MONETARY POLICY THROUGH 1989 margins with further price hikes on final goods and services. These faster price rises would, in The monetary actions of the first half of the year turn, foster an inflationary psychology, cut into were undertaken so that economic expansion workers' real purchasing power, and prompt an could be maintained, recognizing that to do so attempted further catchup of wages, setting in additional price pressures could not be permitted motion a dynamic process in which neither workto build and that progress toward external bal- ers nor businesses would benefit. The hard-won ance had to be sustained. The projections of gains in our international competitiveness would FOMC members and nonvoting presidents indi- be eroded, with feedback effects depressing the cate that they do expect economic growth to exchange value of the dollar. Excessive domestic continue and inflation to be contained. demands and inflation pressures in this country, The central tendency of FOMC members' ex- with its sizable external deficit, would be disruptive to the ongoing international adjustment of pectations of 23/4 to 3 percent for real growth of trade and payments imbalances. GNP over the four quarters of this year implies a deceleration over the rest of the year to a pace Not only the reduced slack in the economy but more in line with their expectations of real also several prospective adjustments in relative growth of 2 to 2 </ percent over 1989 and with the prices have accentuated inflation dangers. One is 2 long-run potential of the economy. The drought the upward movement of import prices relative will reduce farm output for a time, and it is to domestic prices, which is a necessary part of important that nonfarm inventory accumulation the process of adjustment to large imbalances in slow before long if we are to avoid a troublesome international trade and payments. Another is the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 609 recent drought-related increases in grain and surge in sales of computers whose prices have soybean prices. It is essential that we keep these dropped sharply since the 1982 base year used processes confined to a one-time adjustment in for constructing the deflator. Indeed, if the dethe level of prices and not let them spill over to a flator were indexed with a 1987 base year, it sustained higher rate of increase in wages and would have risen appreciably faster in the first prices. Elevated import and farm prices must be quarter. prevented from engendering expectations of Another understatement of inflation in the dehigher general inflation, with feedback effects on flator this year arises from its exclusion of imlabor costs. A more serious long-run threat to ported goods, which are not directly encomprice stability could come from government ac- passed because they are produced abroad. In tions that introduced structural rigidities and part because import prices have continued to rise increased costs of production. Protectionist leg- significantly faster than prices of domestically islation, inordinate hikes in the minimum wage, produced goods, consumer price indexes have and other mandated programs that would impose increased more than the GNP deflator. costs on U.S. producers would adversely affect The FOMC believes that efforts to contain their efficiency and international competitive- inflation pressures and sustain the economic exness. pansion would be fostered by growth of the The costs to our economy and society of monetary aggregates over 1988 well within their allowing a more intense inflationary process to reaffirmed annual ranges of 4 to 8 percent, folbecome entrenched are serious. As the experi- lowed by some slowing in money growth over the ence in the past two decades has clearly shown, course of next year. M2 should move close to the accelerating wages and prices would have to be midpoint of its range by late 1988 if depositors countered later by quite restrictive policies, with react as expected to the greater attractiveness of unavoidably adverse implications for production market instruments, compared with liquid money and employment. The financial health of many balances, that was brought about by recent inindividual and business debtors, as well as of creases in short-term market rates relative to some of their creditors, then would be threat- deposit rates. M3 could end the year somewhat ened. The long-run costs of a return to higher above its midpoint, though comfortably within its inflation and the risks of this occurring under range if depository institutions retain their recent current circumstances are sufficiently great that share of overall credit expansion. The debt of Federal Reserve policy at this juncture might be nonfinancial sectors, which so far this year has well advised to err more on the side of restric- been near the midpoint of its reaffirmed monitortiveness rather than of stimulus. ing range of 7 to 11 percent, is anticipated to post We believe that monetary policy actions to similar growth through the year-end. date, together with the fiscal restraint embodied For 1989, the FOMC has underscored its inin last fall's agreement between the Congress and tention to encourage progress toward price stathe administration, have set the stage for contain- bility over time by lowering its tentative ranges ing inflation through next year. The central ten- for money and debt. We have preliminarily redency of FOMC members' expectations for in- duced the growth range for M2 by 1 full percentflation in the GNP deflator ranges from 3 to 33A age point, to 3 to 7 percent; last February, the percent over this year to 3 to 4V2 percent next FOMC also had reduced the midpoint of the 1988 year. But in one sense the GNP deflator under- range for M2 by 1 percentage point from that for states this year's rate of inflation, and the com- 1987. We have adjusted the tentative 1989 range parison with next year overstates the pickup. for M3 downward by Vi percentage point, to V/i The deflator represents the average price of final to IVi percent. This configuration is consistent goods and services produced in the United States with the observed tendency for M3 velocity over or, equivalently, domestic value added, using time to fall relative to the velocity of M2; over current quantity weights. This measure was arti- the last decade, the Federal Reserve's ranges ficially held down in the first quarter by a shift in frequently allowed for faster growth of M3 than the composition of output, especially by the of M2. The monitoring range for domestic nonfi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 Federal Reserve Bulletin • September 1988 nancial debt for 1989 also has been lowered Vi ducements to foreigners to acquire dollar aspercentage point to a tentative 6V2 to W/i per- sets—either higher real interest returns, or a cent. cheaper real foreign exchange value for dollar The specific ranges chosen for 1989 are, as assets, or both. To be sure, such changes in usual, provisional, and the FOMC will review market incentives would have self-correcting efthem carefully next February, in light of inter- fects over time in reducing the imbalance bevening developments. Anticipating today how tween our domestic spending and income. the outlook for the economy in 1989 will appear Higher real interest rates would curtail domestic next February is difficult, and a major reassess- investment and other spending. A lower real ment of that outlook would have implications for value of the dollar would make U.S. goods and appropriate money growth ranges for that year. services relatively less expensive to both U.S. Unexpectedly strong or weak economic expan- and foreign residents, damping our spending on sion or inflation pressures over the next six imports out of U.S. income and boosting our months also could have implications for the exports. behavior of interest rates and their prospects for But simply sitting back and allowing such a 1989. The sensitivity of the monetary aggregates self-correction to take place is not a workable to movements in market interest rates means that policy alternative. Trying to follow such a course the appropriate growth next year in M2, M3, and could have severe drawbacks now that our econdebt could seem different next February from omy is operating close to effective capacity and now, necessitating a revision in the annual potential inflationary pressures are on the horigrowth ranges. As the aggregates have become zon. The time is hardly propitious to discourage more responsive to interest rate changes in the investment in needed plant and equipment, to 1980s, judgments about possible ranges for the add further impulses for import price hikes on next year necessarily have become even more top of the upward tendencies already in the tentative and subject to revision. making, or to push our export industries as well as import-competing industries to their capacity limits. THE PERSISTENT U.S. EXTERNAL AND Fortunately, we have a better choice for right- FISCAL IMBALANCES ing the imbalance between domestic spending and income—one over which we have direct Despite the changes in the economic setting over control. That is to resume reducing substantially the last six months, other features of the macro- the still massive federal budget deficit, which economic landscape remain much the same. remains the most important source of dissaving Most notable are the continuing massive deficits in our economy. The fall in the dollar that we in our external payments and internal fiscal ac- have already experienced over the past few counts. As a nation, we still are living well years, even allowing for the dollar's appreciation beyond our means; we consume much more of from the lows reached at the end of last year, has the world's goods and services each year than we set in motion forces that should continue to produce. Our current account deficit indicates narrow our trade and current account deficits in how much more deeply in debt to the rest of the the years ahead. The associated loss of foreignworld we are sliding each year. funded domestic investment is likely to adversely The consequence of this external imbalance affect overall investment unless it can be rewill be a steady expansion in our external debt placed by greater domestic investment financed burden in the years ahead. No household or by domestic saving. A sharp contraction in the business can expect to have an inexhaustible federal deficit appears to be the only assured credit line with borrowing terms that stay the source of augmented domestic net saving. Such a same as its debt mounts relative to its wealth and fiscal cutback should help counter future tendenincome. Nor can we as a nation expect our cies for further increases in U.S. interest rates foreign indebtedness to grow indefinitely relative and declines in the dollar, partly by instilling confidence on the part of international investors to our servicing capacity without additional in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 611 in the resolve of the United States to address its objectives. The strategic role of U.S. monetary economic problems. policy is implied by a clear statement of what Fiscal restraint in the years ahead would assist those ultimate objectives are. We should not be in making room for the needed diversion of more satisfied unless the U.S. economy is operating at of our productive resources to meeting demands high employment with a sustainable external from abroad. Domestic demands will have to position and above all stable prices. continue growing more slowly than our produc- High employment is consistent with steadily tive capacity, as seems to have been the case so rising nominal wages and real wages growing in far this year, if net exports are to expand further line with productivity gains. Some frictional unwithout resulting in an inflationary overheating of employment will exist in a dynamic labor market, the economy. Absent this fiscal restraint, higher reflecting the process of matching available interest rates would become the only channel for workers with available jobs. But every effort damping domestic demands if they were becom- should be made to minimize both impediments ing excessive. If a renewed decline in the dollar that contribute to structural unemployment and were adding further inflationary stimulus at the deviations of real economic growth from the same time, upward pressures on interest rates economy's potential that cause cyclical unemwould be even more likely. The restrictive im- ployment. pact would be felt most by the interest-sensitive By a sustainable external position, I am refersectors—homebuilding, business fixed invest- ring to a situation in which our foreign indebtedment, and consumer durables. ness is not persistently growing faster than our In terms of federal deficit reduction, the sched- capacity to service it out of national income. Our ule under the Gramm-Rudman-Hollings law is a international payments need not be in exact good baseline for a multiyear strategy, and I trust balance from one year to the next, and the the Congress will stick with it. But we should go exchange value of the dollar need not be perfurther. Ideally, we should be aiming ultimately fectly stable, but wide swings in the dollar, and at a federal budget surplus, so that government boom and bust cycles in our export and importsaving could supplement private domestic saving competing industries, should be avoided. in financing additional domestic investment. His- By price stability, I mean a situation in which torically, the United States has not been a low- households and businesses in making their saving saving, low-investing economy. From the post- and investment decisions can safely ignore the Civil War period through the 1920s, the United possibility of sustained, generalized price in- States consistently saved more as a fraction of creases or decreases. Prices of individual goods GNP than did Japan and Germany, and we saved and services, of course, would still vary to equilmuch more as a share of GNP then than we have ibrate the various markets in our complex nasince the end of World War II. A turnaround in tional and world economy, and particular price our current domestic saving performance is es- indexes could still show transitory movements. sential to a smooth reduction in our dependence A small persistent rise in some of the indexes on foreign saving, and the federal government would be tolerable, given the inadequate adjustshould take the lead. ment for trends in quality improvement and It is also apparent that redressing our external the tendency for spending to shift toward goods imbalances must encompass cooperative policies that have become relatively cheap. But essenwith our trading partners. These partners include tially the average of all prices would exhibit no both the established industrial powers, the newly trend over time. Price movements in these cirindustrialized economies, and the developing cumstances would reflect relative scarcities of countries, whose debt problems must be worked goods, and private decisionmakers could focus through as part of the international adjustment their concerns on adjusting production and process. consumption patterns appropriately to changing individual prices, without being misled by This is the strategy that U.S. fiscal policy as generalized inflationary or deflationary price well as economic policies abroad should follow in movements. most effectively promoting our shared economic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 Federal Reserve Bulletin • September 1988 The strategy for monetary policy needs to be device for calibrating prospective monetary polcentered on making further progress toward and icy. The announcement of ranges for the moneultimately reaching stable prices. Price stability tary aggregates represents a way for the Federal is a prerequisite for achieving the maximum Reserve to communicate its policy intentions to economic expansion consistent with a sustain- the Congress and the public. And the undisputed able external balance at high employment. Price long-run relation between money growth and stability reduces uncertainty and risk in a critical inflation means that trend growth rates in the area of economic decisionmaking by households monetary aggregates provide useful checks on and businesses. In the process of fostering price the thrust of monetary policy over time. It is stability, monetary policy also would have to clear to all observers that the monetary ranges bear much of the burden for countering any will have to be brought down further in the future pronounced cyclical instability in the economy, if price stability is to be achieved and then especially if fiscal policy is following a program maintained. for multiyear reductions in the federal budget But, in a shorter-run countercyclical context, deficit. While recognizing the self-correcting na- monetary aggregates have drawbacks as rigid ture of some macroeconomic disturbances, mon- guides to monetary policy implementation. As I etary policy does have a role to play over time in discussed in some detail in my February testiguiding aggregate demand into line with the econ- mony, financial innovation and deregulation in omy's potential to produce. This may involve the 1980s have altered the structure of deposits, providing a counterweight to major, sustained lessened the predictability of the demands for the cyclical tendencies in private spending, though aggregates, and made the velocities of Ml and we can not be overconfident in our ability to probably M2 over periods of a year or so more identify such tendencies and to determine ex- sensitive to movements in market interest rates. actly the appropriate policy response. In this Movements in short-term market rates relative to regard, it seems worthwhile for me to offer some sluggishly adjusting deposit rates can result in thoughts on the approach the Federal Reserve large percentage changes in the opportunity costs should take in implementing this longer-term of holding liquid monetary assets. Depositor restrategy for monetary policy. sponses can induce divergent growth between money and nominal GNP for a time. I might add THE APPROPRIATE TACTICS FOR that it was partly these considerations that led MONETAR Y POLICY the FOMC to retain the wider 4 percentage point ranges for money and credit growth for this year For better or worse, our economy is enormously and next. complex, the relationships among macroecono- Nonetheless, the demonstrated long-run conmic variables are imperfectly understood, and as nection of money and prices overshadows the a consequence economic forecasting is an uncer- problems of interpreting shorter-run swings in tain endeavor. Nonetheless, the forecasting ex- money growth. I certainly do not want to leave ercise can aid policymaking by helping to refine the impression that the aggregates have little the boundaries of the likely economic conse- utility in implementing monetary policy. They quences of our policy stance. But forecasts will have an important role, and it is quite possible often go astray to a greater or lesser degree, and that their importance will grow in the years monetary policy has to remain flexible to respond ahead. Currently, the FOMC keeps M2 and M3 to unexpected developments. under careful scrutiny and judges their actual A perfectly flexible monetary policy, however, movements relative to assessments of their apwithout any guideposts to steer by, can risk propriate growth at any particular time. In this losing sight of the ultimate goal of price stability. context, these aggregates are among the indica- In this connection, the requirement under the tors that influence adjustments to the stance of policy, both at regular FOMC meetings and Humphrey-Hawkins Act for the Federal Reserve between meetings, as the FOMC's directive to to announce its objectives and plans for growth the Federal Reserve Bank of New York's Tradof money and credit aggregates is a very useful Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 613 ing Desk indicates. The FOMC also regularly various monetary measures to indicate long-run monitors a variety of other monetary aggregates. price trends. At times in recent years, we have intensively Because the Federal Reserve cannot reliably examined the properties of several alternative take its cue for shorter-run operations solely measures and reported the results to the Con- from the signals being given by any or all of the gress. These measures have included Ml, Ml-A monetary aggregates, we have little alternative (Ml less NOW accounts), monetary indexes, and but to interpret the behavior of a variety of most recently the monetary base. economic and financial indicators. They can sug- An analysis of the monetary base appears as an gest the likely future course of the economy appendix to the Board's Humphrey-Hawkins given the current stance of monetary policy. report.1 This aggregate, essentially the sum of Judgments about the balance of various risks currency and reserves, did not escape the sharp to the economic outlook need to adapt over time velocity declines of other money measures ear- to the shifting weight of incoming evidence; this lier in the 1980s. Its velocity behavior stemmed point is well exemplified so far this year, as noted from relatively strong growth in transaction de- earlier. The Federal Reserve must be willing to posits compared with that of GNP, which was adjust its instruments fairly flexibly as these mirrored in the reserve component of the base. judgments evolve; we must not hesitate to re- In this sense, some of the problems plaguing Ml verse course occasionally if warranted by new also have shown through to the base, though in developments. To be sure, we should not oversomewhat muted form. Moreover, the three- react to every bit of new information, because fourths share of currency in the base raises some the frequent observations for a variety of ecoquestion about the reliability of its link to spend- nomic statistics are subject to considerable traning. The high level of currency holdings—$825 sitory "noise." But we need to be willing to per man, woman, and child living in the United respond to indications of changes in underlying States—suggests that vast, indeterminate economic trends, without losing sight of the amounts of U.S. currency circulate or are ultimate policy objectives. hoarded beyond our borders. Indeed, over the To the extent that the underlying economic last year and a half, currency has grown notice- trends are judged to be deviating from a path ably faster than would have been expected from consistent with reaching the ultimate objectives, its historical relationships with U.S. spending the Federal Reserve would need to make "midand interest rates. course" policy corrections. Such deviations Although the monetary base has exhibited from the appropriate direction for the economy some useful properties over the past three dec- will be inevitable, given the delayed and imperades as a whole, the FOMC's view is that the fectly predictable nature of the effects of previbehavior of the monetary base has not consis- ous policy actions. Numerous unforeseen forces tently added to the information provided by the not related to monetary policy will continue to broader aggregates, M2 and M3. The Committee buffet the economy. The limits of monetary polaccordingly has decided not to establish a range icy in short-run stabilization need to be borne in for this aggregate, although it has requested the mind. The business cycle cannot be repealed, but staff to intensify research into the ability of I believe it can be significantly damped by appropriate policy action. Price stability cannot be dictated by fiat, but governmental decisionmakers can establish the conditions needed to ap- 1. See "Monetary Policy Report to the Congress," FEDproach this goal over the next several years. • ERAL RESERVE BULLETIN, vol. 73 (August 1988), pp. 517-33. Chairman Greenspan presented identical testimony before the Domestic Monetary Policy Subcommittee of the House Committee on Banking, Finance and Urban Affairs, July 28, 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 Announcements JOHN P. LA WARE: APPOINTMENT AS A covering all Board regulations and related materials, MEMBER OF THE BOARD OF GOVERNORS and three separate handbooks on securities credit (Regulations G, T, U, and X), consumer regulations On May 23, 1988, President Reagan announced (B, C, E, M, Z, AA, and BB), and regulations his intention to nominate John P. LaWare as a relating to monetary policy (A, D, and Q). member of the Board of Governors. Mr. LaWare The new handbook will contain all Board regwas subsequently confirmed by the Senate on ulations governing the payments system, includ- August 4 and took the oath of office, adminis- ing Regulation J (Collection of Checks and Other tered by Chairman Greenspan, on August 15. Items and Wire Transfers of Funds), and Regu- The text of the White House announcement of lation CC (Expedited Funds Availability), and May 23 follows: the Board's policy statements on paymentssystem risk. The President today announced his intention to Regulation CC was adopted by the Board on nominate John P. LaWare, of Massachusetts, District May 11, 1988, and became effective on Septem- 1, to be a Member of the Board of Governors of the ber 1, 1988. Federal Reserve System for a term of 14 years from Subscribers to the full Regulatory Service will February 1, 1988. He would succeed Henry C. Wallich. automatically receive these materials as part of Since 1978, Mr. LaWare has been Chairman and their subscriptions. Director of Shawmut National Corporation and Shaw- The new handbook, which will be updated on a mut Bank in Boston, Massachusetts; he was named monthly basis and will be cross-indexed, is designed Chairman and Chief Executive Officer of both the to help those who must refer frequently to the corporation and the bank in 1980. Mr. LaWare joined Chemical Bank & Trust Company in 1953, serving in Board's regulatory material in the payments area. various capacities: Senior Vice President, Vice Presi- Cost of the new handbook will be $75 annually. dent, and Assistant Secretary. Inquiries should be addressed to Publications Ser- Mr. LaWare graduated from Harvard University vices, Board of Governors of the Federal Reserve (B.A., 1950) and the University of Pennsylvania System, Washington, D.C. 20551. (M.A., 1951). He was born February 20, 1928, in Columbus, Wisconsin. He served in the United States Air Force, 1951-53, and the New York Air National Guard, 1954-59. He is married, has two children, and Two STUDIES ON CONTROLLING RISK IN resides in Brookline, Massachusetts. THE PAYMENTS SYSTEM NOW AVAILABLE PUBLICATION OF NEW HANDBOOK FOR The Board of Governors has issued two separate THE REG ULA TOR Y SER VICE but parallel studies regarding risk in the payments system and the advantages and drawbacks The Federal Reserve Board announced on July 6, of various policies for controlling this risk. The 1988, that it will begin publication in September purpose of the two studies was to reexamine the of a new handbook to its Regulatory Service that direction of the Board's policy on reducing risk will incorporate regulations, interpretations, pol- in the payments system with the aim of refining icy statements, and commentary on the pay- the understanding of basic objectives and of ments system and the Expedited Funds Avail- alternative policies. A Task Force on Controlling ability Act in a single looseleaf publication. Payments-System Risk, comprising members of The Federal Reserve Regulatory Service cur- the staffs of the Board and of the Federal Reserve rently consists of four books—a complete service Banks, prepared one report, entitled Controlling Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

615 Risk in the Payments System. The Board's list have been removed for substantially failing to Large-Dollar Payments System Advisory Group, meet the requirements for continued listing; 77 composed of senior officers of several private stocks have been removed for reasons such as depository institutions, prepared the second re- listing on a national securities exchange or inport, entitled A Strategic Plan for Managing volvement in an acquisition. Risk in the Payments System. The list includes all over-the-counter securities The Board's Payments System Policy Committee designated by the Board pursuant to its estabcommissioned the two studies in August 1987 as lished criteria as well as all stocks designated as part of its review and revision of its initial policy. NMS securities for which transaction reports are The report by the Advisory Group was prepared required to be made pursuant to an effective from the perspective of the private sector and makes transaction reporting plan. Additional OTC secuspecific recommendations. The report by the rities may be designated as NMS securities in the Board's Task Force analyzes the advantages and interim between the Board's quarterly publicadisadvantages of various policy options. tions and will be immediately marginable. The next publication of the Board's list is scheduled for November 1988. UPDATE TO STAFF GUIDELINES UNDER Besides NMS-designated securities, the Board REGULATION A A will continue to monitor the market activity of other OTC stocks to determine which stocks The Federal Reserve Board published on July 29, meet the requirements for inclusion and contin- 1988, the second update to its staff guidelines on ued inclusion on the list. the Credit Practices Rule under Regulation AA. The updated guidelines became effective August 1, 1988. EXTENSION OF COMMENT PERIOD ON SAME-DAY PAYMENT OF CHECKS The Board's Credit Practices Rule, applicable to all banks and their subsidiaries, addresses un- The Federal Reserve Board has extended the fair or deceptive acts or practices in the extending period for comment on its proposed concept of of consumer credit. The rule does not apply to same-day payment for checks presented to paying loans for the purchase of real property. Banks are banks by private-sector collecting banks. In reprohibited from using certain remedies to enforce sponse to requests for additional time to prepare consumer credit obligations and from using a late comments, the Board is extending the comment charge practice commonly referred to as "pyraperiod through December 1, 1988. The proposed miding." The rule also provides protections for concept was published on April 5, 1988, with the cosigners of consumer credit obligations. comment period ending August 3, 1988. REVISED LIST OF OTC STOCKS SUBJECT INFORMAL HEARING HELD TO MARGIN REGULATIONS NOW AVAILABLE The Federal Reserve Board held an informal The Federal Reserve Board published on July 22, hearing on July 29, 1988, on a proposed rule to 1988, a revised list of over-the-counter (OTC) implement the limitations placed on grandfastocks that are subject to its margin regulations, thered nonbank banks by the Competitive Equaleffective August 8, 1988. ity Banking Act of 1987. This revised List of Marginable OTC Stocks supersedes the list that was effective on May 9, 1988. The changes that have been made in the CHANGE IN BOARD STAFF list, which now includes 3,147 OTC stocks, are as follows: 77 stocks have been included for the Anthony Cornyn, Assistant Director, Division of first time, 63 under National Market System Banking Supervision and Regulation, resigned (NMS) designation; 68 stocks previously on the effective August 5, 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

617 Legal Developments REVISION OF STAFF GUIDELINES ON THE Ql3(d)-3a: Refinancing (new creditor)-original loan CREDIT PRACTICES RULE purchase money. On the same facts as those detailed in Q13(d)-3, assume that the consumer refinances the The Board of Governors is revising 12 C.F.R. Part loan with a different bank. May that bank acquire the 227, its Staff Guidelines on the Credit Practices Rule, security interest of the purchase-money lender in Subpart B of Regulation AA (Unfair or Deceptive Acts household goods without violating the rule? or Practices). The rule prohibits banks and their subsidiaries from using certain creditor remedies in con- A: Yes, the bank may acquire the security interest of nection with a consumer credit obligation, from using the purchase-money lender without violating the rule. a late-charge practice commonly referred to as pyramiding, and from obligating a cosigner prior to giving a required notice explaining the cosigner's obligations. The update addresses questions on the use of multipurpose credit documents, the acquisition of a security Section 227.16—State Exemptions interest in household goods from a purchase-money lender, and exemptions from the rule. Effective August 1, 1988, 12 C.F.R. Part 227 is Q16(b)-3. Exemptions granted. What states have been revised as follows: granted an exemption from the Board's rule? Section 227.13—Unfair Credit Contract A: The state of Wisconsin was granted an exemption Provisions from all provisions of the Board's rule effective November 20, 1986, for transactions of $25,000 or less. The state of New York was granted an exemption from 13(a) Confessions of Judgment the cosigner provisions of the Board's rule effective January 21, 1987, for transactions of $25,000 or less. In both Wisconsin and New York, transactions over Q13(a)-2: Language limiting confession of judgment $25,000 are subject to the Board's rule but compliance provision. If a bank uses multi-purpose credit con- with state law is deemed compliance with the federal tracts, may the bank include a confession of judgment law. The state of California was granted an exemption clause with qualifying language indicating that the from the cosigner provisions of the Board's rule effecclause is not applicable in a consumer purpose loan— tive August 1, 1988. These exemptions do not apply to such as, "You confess judgment to the extent the law federally-chartered institutions. allows," or "This clause applies only in business purpose loans"? A: No. Given the public policy purpose of the rule, a ORDER GRANTING AN EXEMPTION TO THE bank may not have a confession of judgment clause in STATE OF CALIFORNIA FROM THE CREDIT a consumer credit contract, even with limiting lan- PRACTICES RULE guage. Therefore, when a multi-purpose form is used for a consumer purpose loan, the bank must cross out, The Board of Governors is amending 12 C.F.R. Part blacken in, or otherwise indicate clearly the removal 227, its Regulation AA, to determine that the exempof the prohibited clause from the loan document. tion from the cosigner provision of the Board's Credit Practices Rule, Subpart B, requested by the state of California will be granted with respect to state-char- 13(d) Security Interest in Household Goods tered institutions. Effective August 1, 1988, the Board amends 12 C.F.R. Part 227 as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 Federal Reserve Bulletin • September 1988 ORDER was appointed receiver. Pursuant to section ll(i) of the Federal Deposit Insurance Act ("FDI Act") as The state of California has applied for an exemption amended by the Competitive Equality Banking Act of from the cosigner provision of the Board's Credit 1987 (12 U.S.C. § 1821(i)), the FDIC established Bank Practices Rule which became effective January 1, to acquire the assets and to assume the liabilities and 1986. Pursuant to section 227.16 of Regulation AA, the deposits of the closed banks. The FDIC solicited offers Board has determined that the relevant laws of this for the acquisition of Bank from qualified bidders state are substantially equivalent to the federal law and pursuant to section 13(f) of the FDI Act (12 U.S.C. that the state administers and enforces its law effec- § 1823(f)). On July 29, 1988, the FDIC selected Applitively. The Board hereby grants the exemption as cant's bid for Bank. On the same day, the FDIC follows: advised that Applicant had been selected as the winning bidder, and recommended immediate action on this application in order to permit Bank to open and Effective August 1, 1988, consumer credit transactions that are subject to the California Civil Code and California Busi- operate without the need for liquidation. The OCC has ness and Professions Code are exempt from the cosigner also recommended approval of the transaction. provision of the Board's Credit Practices Rule, 12 C.F.R. In view of this situation and the need for immediate § 227.14. This exemption does not apply to transactions in action to prevent the failure of the institution and to which a federally chartered institution is a creditor. protect the interest of Bank's depositors, it has been determined, pursuant to section 3(b) of the BHC Act (12 U.S.C. § 1842(b)), section 225.14 (h) of Regula- ORDERS ISSUED UNDER BANK HOLDING tion Y (12 C.F.R. § 225.14(h)), and section 262.3(1) of COMPANY ACT the Board's Rules of Procedure (12 C.F.R. § 262.3(1)), to dispense with the notice provisions of the BHC Act. Orders Issued Under Section 3 of the Bank Under section 3(d) of the BHC Act (12 U.S.C. Holding Company Act § 1842(d)), the Douglas Amendment, a bank holding company generally may not be allowed to acquire NCNB Corporation control of any bank located outside of the holding Charlotte, North Carolina company's principal state of operations.1 NCNB Corporation, with approximately $29 billion in total assets Order Approving Acquisition of a Bank as of March 31, 1988, is a bank holding company that principally operates in North Carolina for purposes of NCNB Corporation, Charlotte, North Carolina, a the Douglas Amendment. As noted above, Bank is bank holding company within the meaning of the Bank located in Texas. Holding Company Act (the "BHC Act") (12 U.S.C. Section ll(i)(9) of the FDI Act (12 U.S.C. § 1841 et seq.), has applied for the Board's approval § 182 l(i)(9» specifically provides that a bank holding under section 3 of the BHC Act (12 U.S.C. § 1842) to company may acquire a bridge bank located in another acquire control of JRB Bank, National Association, a state, without regard to the limitations on interstate bridge bank ("Bank") created by the Federal Deposit bank acquisitions contained in the Douglas Amend- Insurance Corporation ("FDIC") to acquire the assets ment or in any relevant state law, where the bridge and assume the deposits and liabilities of First Repub- bank has total assets of at least $500,000,000. See also lic Bank Dallas, N.A., and other bank subsidiaries of 12 U.S.C. § 1823(f)(4)(A). Bank, with total assets of First RepublicBank Corporation, Dallas, Texas. Ap- approximately $25 billion, was established by the plicant proposes to immediately enter into a manage- FDIC pursuant to section 1 l(i) of the FDI Act and will ment agreement with the FDIC that provides that be acquired by Applicant in an assisted transaction. Applicant will operate Bank under the name NCNB Accordingly, the provisions of section 3(d) of the BHC Texas National Bank with full discretion over, and Act and of any relevant state law do not bar approval responsibility for, the daily operations of Bank. Appli- of the proposed transaction. cant also proposes to acquire all of the voting shares of In evaluating an application under section 3 of the Bank. In addition, Applicant proposes to acquire BHC Act, the Board is required to consider the indirectly First RepublicBank International, New York, New York, a company organized and held pursuant to the Edge Act (12 U.S.C. § 611 et seq.). 1. A bank holding company's principal state of banking operations On July 29, 1988, First RepublicBank Dallas, N.A., is the state in which the operations of the bank holding company's and other bank subsidiaries of First RepublicBank banking subsidiaries were principally conducted on the later of July 1, 1966, or the date on which the company became a bank holding Corporation were declared insolvent and the FDIC company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 619 financial and managerial resources and future pros- currently provided by the Edge Corporation of Bank. pects of the companies involved, the effect of the In light of the facts in this case, approval of this proposal on competition, and the convenience and acquisition would be in the public interest and consisneeds of the communities to be served. Under the tent with the purposes of the Edge Act. proposal, Applicant would immediately provide Bank The FDIC has informed the Board that immediate with new management officials, with proven manage- action on Applicant's proposal is necessary in order to ment capability, and would reopen and operate Bank, permit Bank to open and operate as a viable competiwhich would continue to provide a full range of tor that will continue to serve its communities. In light services to customers of Bank. The agreement in of these and all the facts of record in this case, the principle between Applicant and the FDIC will also General Counsel and the Staff Director of the Division recapitalize Bank. With respect to the financial fac- of Banking Supervision and Regulation, acting pursutors, note has been taken of Applicant's existing ant to authority delegated by the Board, have deterfinancial strength on a consolidated basis and Appli- mined, in accordance with section 11(b) of the BHC cant's plans to supplement its own capital resources to Act, that Applicant may immediately acquire control support the new investment. of Bank through the management agreement with the Based on these and all of the other facts of record, FDIC, and that Applicant may consummate its proincluding the bid proposal made by Applicant and posed investment in Bank on or after the fifth calendar accepted by the FDIC, the financial and managerial day following the effective date of this Order. The resources and future prospects of Applicant, its sub- transaction shall not be consummated later than three sidiaries and Bank are consistent with approval of this months after the effective date of this Order, unless the application. The benefits to the convenience and needs period for consummation is extended for good cause of the communities in Texas of maintaining Bank as a by the Board or the Federal Reserve Bank of Richviable competitor in Texas weigh in favor of approval mond under delegated authority. of this application. By order, approved pursuant to authority delegated Applicant owns over 25 percent of the voting shares by the Board, effective July 29, 1988. of Charter Bancshares, Houston, Texas, whose banks operate in the Houston banking market. The affiliation MICHAEL BRADAELD of Charter Bancshares and Bank will not result in a General Counsel significant increase in market concentration or have any other significant adverse effects on competition in WILLIAM TAYLOR the Houston banking market. In addition, while Ap- Staff Director plicant maintains several offices engaged in various Division of Banking Supervision nonbanking activities in Texas, there is no significant and Regulation competition in these areas between Applicant and Bank. Accordingly, consummation of the proposal Somerset Bankshares, Inc. would not increase the concentration of banking re- Somerville, Massachusetts sources or have any significant adverse effects on competition in Texas or any other relevant market. Order Approving Formation of a Bank Holding Based on the foregoing and all of the facts of record, Company the General Counsel and the Staff Director of the Division of Banking Supervision and Regulation have Somerset Bankshares, Inc., Somerville, Massachudetermined, acting pursuant to authority specifically setts ("Somerset"), has applied for the Board's apdelegated by the Board in this case, that the applica- proval under section 3(a)(1) of the Bank Holding Comtion under section 3 of the Act should be, and hereby pany Act of 1956, as amended (12 U.S.C. § 1842(a)(1)) is, approved. This action is limited to approval of the ("BHC Act"), to become a bank holding company by transaction according to the terms and conditions of acquiring all of the outstanding voting shares of Applicant's bid as presented to the Board, and any Somerset Savings Bank, Somerville, Massachusetts significant change in those terms or conditions may ("Bank"), an FDIC-insured savings bank.1 require further review by the Board. Moreover, as a Notice of the application, affording an opportunity condition of this Order, further investments in the for interested persons to submit comments, has been equity of Bank by Applicant as permitted under the agreement in principal between Applicant and the FDIC will require the prior approval of the Board. 1. As an FDIC-insured institution, Bank would qualify as a "bank" The acquisition of Bank by Applicant would also under section 2(c) of the BHC Act, as amended by section 101(a) of the Competitive Equality Banking Act of 1987, Pub. L. No. 100-86, 100 result in the continuation of the international services Stat. 552, 554 (1987) (to be codified at 12 U.S.C. § 1841(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 Federal Reserve Bulletin • September 1988 given in accordance with section 3(b) of the BHC Act, Somerset filed its application to acquire Bank ap- (52 Federal Register 21,739 (June 9, 1987)). The time proximately one year ago. Because of concern regardfor filing comments has expired, and the Board has ing Bank's CRA record, the Board requested that the considered the application and all comments received Commonwealth of Massachusetts examine Bank to in light of the factors set forth in section 3(c) of the determine the bank's compliance with the CRA and BHC Act (12 U.S.C. § 1842(c)). other consumer laws. The Commonwealth's examina- Somerset is a non-operating corporation formed for tion uncovered numerous violations and deficiencies the purpose of acquiring Bank. Principals of Somerset in these areas, and based on these deficiencies, the are also principals of Bank. Bank is the 14th largest Commonwealth determined that Bank's overall record commercial banking organization in Massachusetts, was less than satisfactory. The examination found with total deposits of $378.1 million, representing less violations of certain state consumer laws and provithan one percent of total deposits in commercial banks sions of the Board's Regulation B. The examination in the state.2 This proposal represents a restructuring also indicated that Bank had not instituted procedures of existing ownership interests. Consummation of this to determine adequately the credit needs of its comproposal would not result in any significant adverse munity. For example, Bank was unable to document effect on the concentration of banking resources in its officer call program to potential customers, and the Massachusetts. officers' participation in various civic organizations Bank competes in the Boston banking market,3 was not part of an organized effort to help the comwhere it is the 11th largest commercial banking orga- munity or solicit information on its credit needs. nization, controlling less than one percent of total Although Bank advertised its deposit services, Bank deposits in commercial banks in the market. Principals failed to advertise its credit products to the public. The of Somerset and Bank are not associated with any examination also indicated that Bank was not an active other financial institution located in the market. Con- participant in community development programs or summation of this transaction would not result in any government supported housing and small business significant adverse competitive effects in any relevant programs in recent years, and many of the activities geographic area. that Bank used as evidence to support its development The financial and managerial resources and future record were out-dated or were specific programs reprospects of Somerset and Bank are considered satis- quired by state law. Finally, the Bank's lending record factory and consistent with approval. indicated that a substantial portion of Bank's loans In considering the convenience and needs of the were made to borrowers outside Bank's designated community to be served, the Board has taken into community, despite evidence of loan demand within account the record of Bank under the Community the community. Reinvestment Act (12 U.S.C. § 2901 etseq.) ("CRA") In response to the examination findings, Somerset and various consumer compliance statutes. The CRA made a number of commitments to the Board and the requires the federal bank supervisory agencies to Commonwealth to improve Bank's consumer compliencourage financial institutions to help meet the credit ance and CRA record.4 Bank has committed to the needs of the local communities in which they are Board (1) to strengthen its community outreach activchartered consistent with the safe and sound operation ities by meeting regularly with local community repreof such institutions. To accomplish this end, the CRA sentatives, (2) to review its participation in governrequires the appropriate federal supervisory authority mental credit programs and to inform the public of the to "assess the institution's record of meeting the credit availability of funds under such programs, and (3) to needs of its entire community, including low- and develop further its plans for making its entire commumoderate-income neighborhoods, consistent with the nity more fully aware of its credit services through safe and sound operation of the institution." The advertising and a call program. Bank has provided Board is required to "take such record into account in reports to the Federal Reserve Bank of Boston and the its evaluation" of applications under section 3 of the Commonwealth over the past six months detailing its BHC Act. 4. Bank committed to the Commonwealth to take all necessary 2. All banking data are as of December 31,1987. steps to alleviate the deficiencies revealed in the examination report. 3. The Boston banking market is approximated by the Boston RMA Bank also made a number of specific commitments, including comminus the New Hampshire towns of Brentwood, Chester, and Derry mitments to better market its credit services, to offer mortgages on and the Massachusetts towns of Ayer, Berlin, Groton, Harvard, less restrictive terms and to become involved with certain government Pepperell, and Shirley. The Boston market also includes those por- lending programs and community development projects. Bank has tions of Bellingham, Carver, Lakeville, Middleboro, and Plymouth corrected its technical CRA violations and has made substantial not included in the Boston RMA. efforts to fulfill these commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 621 efforts to implement the commitments that it made to As a condition of approval of this application, each regulator. Somerset and Bank shall continue to submit quarterly In December 1987, Bank's board of directors reports to the Reserve Bank concerning the progress adopted a new CRA statement. As part of Bank's of Bank's CRA program. The Board will also carefully commitment to ascertain the credit needs of its com- review all future applications to determine whether munity, Bank has assigned a vice president as the Somerset has made substantial measurable progress in Bank's compliance officer to oversee its CRA activi- fulfulling the commitments it has made to the Board to ties. This officer will report to Bank's board of direc- improve its service to the convenience and needs of its tors on a quarterly basis, and the Bank's board will community. record its actions regarding Bank's CRA efforts. As Based on the foregoing and other facts of record, the part of Bank's new program, Bank's employees are Board has determined that approval of the application required to increase their calls to potential small would be consistent with the public interest and that business borrowers, and Bank is in the process of the application should be, and hereby is, approved. creating a detailed centralized reporting system for The transaction shall not be consummated before the judging the success of its call program. thirtieth calendar day following the effective date of In addition, Bank will initiate meetings with local this Order, or later than three months after the effecgroups involved with housing and other credit-related tive date of this Order, unless such period is extended areas. In order to inform the local community of its for good cause by the Board or by the Federal Reserve credit services, Bank has begun to advertise its credit Bank of Boston, acting pursuant to delegated authorproducts in local papers and now has its mortgage ity. program included as part of the mortgage rate report in By order of the Board of Governors, effective the local newspapers. Bank has taken steps to increase July 25, 1988. its participation in community development projects and recently obtained approval to participate in the Voting for this action: Vice Chairman Johnson and Gover- FHA loan program. Finally, Bank has made certain nors Seger, Angell, and Heller. Absent and not voting: financial commitments to a number of state and local Chairman Greenspan and Governor Kelley. housing authorities and community assistance programs. After a review of the actions and ongoing plans JAMES MCAFEE Associate Secretary of the Board Somerset has taken to improve its CRA record, the Commonwealth of Massachusetts approved Somer- Taiyo Kobe Bank, Ltd. set's application to acquire Bank. Kobe, Japan The Board has stated that an applicant's commitments to correct its deficiencies in its CRA program Order Approving Formation of a Bank Holding are an important aspect of the Board's role in encour- Company aging performance under CRA. This is especially important where, as here, Bank has taken substantial actions to correct its deficiencies.5 Accordingly, in Taiyo Kobe Bank, Ltd., Kobe, Japan ("Applicant"), has applied for the Board's approval under section light of Bank's actions over the past six months to 3(a)(1) of the Bank Holding Company Act (12 U.S.C. correct the deficiencies in its CRA performance, its § 1842(a)(1)) ("BHC Act"), to become a bank holding commitments to continue to strengthen its CRA percompany by acquiring all of the voting shares of Taiyo formance, and the favorable recommendation by the Kobe Bank & Trust Company ("Bank"), New York, Commonwealth of Massachusetts, the Board con- New York, a de novo trust bank. cludes that the factors relating to the convenience and Notice of the application, affording an opportunity needs of the communities to be served are consistent with approval.6 for interested persons to submit comments, has been given in accordance with section 3 of the BHC Act. (52 Federal Register 22,527 (1987)). The time for filing comments has expired, and the Board has considered 5. See Advance Bancorp, Inc., 72 FEDERAL RESERVE BULLETIN 834 (1986); Board Statement of January 3, 1980, Federal Reserve Regula- the application and all comments received in light of tory Service, H 6-1312. the factors set forth in section 3(c) of the BHC Act 6. The Board also has received a protest concerning Bank's CRA performance from the Somerville Corporation, Somerville, Massachu- (12 U.S.C. § 1842(c)). setts ("Protestant"), a local non-profit development corporation. Protestant alleged that Bank has not participated in any development projects for low- and moderate-income families in Somerville, even though many of Bank's depositors fall in that category. Somerset and housing for low- and moderate-income residents in the local commu- Protestant reached an agreement that Somerset will increase its nity or permanent financing for such residents. Based on this commitlending over the next four years to non-profit developers of affordable ment, the protest was withdrawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 Federal Reserve Bulletin • September 1988 Applicant, with total assets of approximately $175 United States banking operations.4 In considering apbillion, is the 27th largest bank worldwide and the plications of foreign banking organizations, the Board eighth largest city bank in Japan.1 Applicant engages has noted that foreign banks operate outside the in a variety of banking activities on a world-wide basis. United States in accordance with different regulatory Applicant operates branches in New -York, Chicago and supervisory requirements, accounting principles, and Seattle, as well as an agency in Los Angeles, and asset quality standards, and banking practices and has selected New York as its home state under the traditions, and that these differences make it difficult Board's Regulation K (12 C.F.R. § 211.22(b)).2 Appli- to compare the capital positions of domestic and cant is permitted under section 5 of the International foreign banks. The Board has addressed the complex Banking Act, 12 U.S.C. § 3103(b), to retain its issues involved in balancing these concerns in the branches outside of New York because the Seattle context of individual applications on a case-by-case office was opened prior to July 27, 1978, the statutory basis, making adjustments as appropriate to an appligrandfather date, and because the Chicago branch was cant's capital to reflect differences in accounting treatestablished to receive only such deposits as would be ment and regulatory practices. permissible for a corporation organized under section The Board recently has announced a proposal to 25(a) of the Federal Reserve Act. 12 U.S.C. supplement its consideration of capital adequacy with § 3103(a)(1). a risk-based system that is simultaneously being pro- In addition to traditional lending and deposit-taking posed by the member countries of the Basle Commitactivities, Bank will offer wholesale trust services to tee on Banking Regulations and Supervisory Practices customers in metropolitan New York3 and throughout and the other domestic federal banking agencies.5 The the United States. Bank also will undertake debt Japanese Ministry of Finance in April of this year participations in lease and municipal financing activi- acted to implement for Japanese banking organizations ties nationwide. Bank thereby will expand the scope of the risk-based capital framework developed by the Applicant's banking operations beyond those retail Basle Committee. The Board considers the Basle services currently provided by Applicant's United Committee proposal an important step toward a more States branches and agency. Based upon the facts of consistent and equitable international norm for assessrecord, including the de novo status of Bank, the ing capital adequacy. Until that framework becomes Board concludes that the proposed transaction would effective, however, the Board will continue to evaluate have no adverse effects on competition. Accordingly, applications involving foreign banking organizations competitive considerations are consistent with ap- on a case-by-case basis consistent with its prior preproval. cedent. Section 3(c) of the BHC Act requires the Board in In this case, the primary capital ratio of Applicant, every case to consider the financial resources of an as publicly reported, is well below the 5.5 percent applicant organization and the bank or bank holding minimum level specified in the Board's Capital Adecompany to be acquired. In accordance with the quacy Guidelines.6 After making adjustments to reflect principles of national treatment and competitive eq- Japanese banking and accounting practices, however, uity, the Board has previously stated that it expects including consideration of a portion of the unrealized foreign banks seeking to establish or acquire banking appreciation in Applicant's portfolio of equity securiorganizations in the United States to meet the same ties consistent with the principles in the Basle capital general standards of strength, experience and reputa- framework, Applicant's capital ratio meets United tion as domestic banking organizations, and to be able States standards. to serve as a source of financial strength to their The Board has also considered several additional factors that mitigate its concern in this case. The 1. Banking data are as of March 31, 1988, based on the dollar/yen 4. See Sumitomo Trust & Banking Co., Ltd. 73 FEDERAL RESERVE exchange rate as of that date. Applicant's market rank is as of July BULLETIN 749 (1987). Accord, Long-Term Credit Bank of Japan, 1987. Board Order dated June 6, 1988; Ljubljanska Banka-Associated Bank, 2. As of September 30, 1987, the New York branch reported total 72 FEDERAL RESERVE BULLETIN 489 (1986); The Mitsubishi Trust and assets of $4.7 billion; the Chicago branch reported total assets of $300 Banking Corporation, 72 FEDERAL RESERVE BULLETIN 256 (1986); million; the Seattle branch reported total assets of $800 million; and The Industrial Bank of Japan, Ltd., 72 FEDERAL RESERVE BULLETIN the Los Angeles office reported total assets of $1.2 billion. 71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL RESERVE 3. The Metropolitan New York-New Jersey market is defined to BULLETIN 518 (1984). See also Policy Statement on Supervision and include New York City and Long Island, New York; Putnam, Orange, Regulation of Foreign-Based Bank Holding Companies, Federal Re- Westchester, Rockland and Sullivan Counties in New York; Bergen, serve Regulatory Service 1 4-835 (1979). Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, 5. 53 Federal Register 8,549 (1988). Passaic, Somerset, Sussex, Union and Warren Counties in New 6. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985), Jersey; and portions of Fairfield County in Connecticut. 71 FEDERAL RESERVE BULLETIN 445 (1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 623 Board has placed considerable emphasis on the fact organizations and should be judged against the same that Applicant will establish Bank de novo, and that financial and managerial standards, including the Bank will be strongly capitalized and small in relation Board's capital adequacy guidelines, as are applied to to Applicant. The Board expects that Applicant will domestic banking organizations. maintain Bank among the more strongly capitalized In addition, I am concerned that while this applicabanking organizations of comparable size in the tion would permit a large Japanese banking organiza- United States. The Board notes further that Applicant tion to acquire a bank in the U.S., U.S. banking is in compliance with the capital and other financial organizations are not permitted to make comparable requirements of Japanese banking organizations. In acquisitions in Japan. While some progress is being this regard, the Board has considered as favorable made in opening Japanese markets to U.S. banking factors that, in anticipation of implementation of the organizations, U.S. banking organizations and other Basle Committee risk-based capital framework, Appli- financial institutions, in my opinion, are still far from cant has, through the issuance of common stock and being afforded the full opportunity to compete in retention of earnings, increased its equity capital by Japan. approximately $640 million in its latest fiscal year, and that Applicant's capital improvement program is con- July 8, 1988 sistent with meeting the standards in the Basle Committee capital framework for 1990 and 1992. Toyo Trust and Banking Co., Ltd. Based on these and other facts of record, including Tokyo,Japan certain commitments made by Applicant, the Board concludes that financial and managerial factors are Order Approving the Formation of a Bank Holding consistent with approval of this application to acquire Company Bank. Considerations relating to the convenience and needs of the communities to be served are also con- Toyo Trust and Banking Co., Ltd., Tokyo, Japan sistent with approval. ("Applicant"), has applied for the Board's approval Accordingly, the Board has determined that this under section 3(a)(1) of the Bank Holding Company application under section 3 of the BHC Act should be, Act (the "Act") (12 U.S.C. § 1842(a)(1)), to become a and hereby is, approved. The proposed acquisition of bank holding company by acquiring 100 percent of the Bank shall not be consummated before the thirtieth voting shares of Toyo Trust Company of New York, calendar day following the effective date of this Order. New York, New York ("Bank"), a de novo bank. The proposal shall not be consummated later than Notice of the application, affording an opportunity three months after the effective date of this Order, and for interested persons to submit comments, has been Bank shall be opened for business not later than six given in accordance with section 3(b) of the Act. The months after the effective date of this Order. The latter time for filing comments has expired, and the Board two periods may be extended for good cause by the has considered the application and all comments re- Board or by the Federal Reserve Bank of New York, ceived in light of the factors set forth in section 3(c) of pursuant to delegated authority. the Act (12 U.S.C. § 1842(c)). By order of the Board of Governors, effective Applicant, with total consolidated assets equivalent July 8, 1988. to approximately $84 billion,1 ranks as the sixth largest of eight trust banks in Japan. Worldwide, Applicant Voting for this action: Chairman Greenspan and Governors ranks as the 33rd largest bank. Applicant operates 55 Johnson, Angell, and Heller. Voting against this action: offices throughout Japan as well as five foreign Governor Seger. Absent and not voting: Governor Kelley. branches and agencies and five representative offices. In addition, Applicant engages in financially related JAMES MCAFEE activities through three wholly owned subsidiaries Associate Secretary of the Board outside Japan and owns 30 percent of a leasing company in the People's Republic of China. Dissenting Statement of Governor Seger In the United States, Applicant operates a branch in New York, New York, with total assets of $3.2 I dissent from the Board's action in this case. I believe billion,2 and an agency in Los Angeles, California, that foreign banking organizations whose publicly re- with total assets of $1.6 billion. Applicant has selected ported capital, based on U.S. accounting principles, is well below the Board's capital guidelines for U.S. banking organizations have an unfair competitive ad- 1. Banking data are as of March 31, 1988, and reflect the yen/dollar exchange rate as of that date. Rankings are as of July 31, 1987. vantage in the United States over domestic banking 2. Banking data for branch and agency are as of December 31, 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 Federal Reserve Bulletin • September 1988 New York as its home state under the Board's Regu- balancing these concerns in the context of individual lation K (12 C.F.R. 211.22(b)). Bank will be located in applications on a case-by-case basis, making adjust- Applicant's home state. Accordingly, the Board con- ments as appropriate to an applicant's capital to reflect cludes that the acquisition of Bank by Applicant is differences in accounting treatment and regulatory consistent with Section 5 of the International Banking practices. Act of 1978 (12 U.S.C. § 3103). The Board recently has announced a proposal to Bank, a de novo institution, is being organized as a supplement its consideration of capital adequacy with state-chartered, nonmember bank. It will place pri- a risk-based system that is simultaneously being promary emphasis on providing trust related services, and posed by the member countries of the Basle Commitwill also provide a full range of commercial banking tee on Banking Regulations and Supervisory Practices services in the Metropolitan New York-New Jersey and the other domestic federal banking agencies.5 The banking market.3 In view of the de novo status of Bank Japanese Ministry of Finance in April of this year and based upon the facts of record, the Board con- acted to implement for Japanese banking organizations cludes that the proposed transaction will have no the risk-based capital framework developed by the significant adverse effects on existing or probable Basle Committee. The Board considers the Basle future competition, and will not significantly increase Committee proposal an important step toward a more the concentration of resources in any relevant market. consistent and equitable international norm for assess- Thus, competitive considerations are consistent with ing capital adequacy. Until that framework becomes approval of the application. effective, however, the Board will continue to evaluate Section 3(c) of the Act requires the Board in every applications involving foreign banking organizations case to consider the financial resources of the appli- on a case-by-case basis consistent with its prior precant organization and the bank or bank holding com- cedent. pany to be acquired. In accordance with the principles In this case, the primary capital ratio of Applicant, of national treatment and competitive equity, the as publicly reported, is well below the 5.5 percent Board has previously stated that it expects foreign minimum level specified in the Board's Capital Adebanks seeking to establish or acquire banking organi- quacy Guidelines.6 After making adjustments to reflect zations in the United States to meet the same general Japanese banking and accounting practices, however, standards of strength, experience, and reputation as including consideration of a portion of the unrealized domestic banking organizations, and to be able to appreciation in Applicant's portfolio of equity securiserve as a source of strength to their banking opera- ties consistent with the principles in the Basle capital tions in the United States.4 In considering applications framework, Applicant's capital ratio meets United of foreign banking organizations, the Board has noted States standards. that foreign banks operate outside the United States in The Board has also considered several additional accordance with different regulatory and supervisory factors that mitigate its concern in this case. The requirements, accounting principles, asset quality Board has placed considerable emphasis on the fact standards, and banking practices and traditions, and that Applicant will establish Bank de novo, and that that these differences make it difficult to compare the Bank will be strongly capitalized and small in relation capital positions of domestic and foreign banks. The to Applicant. The Board expects that Applicant will Board has addressed the complex issues involved in maintain Bank among the more strongly capitalized banking organizations of comparable size in the United States. The Board notes further that Applicant is in compliance with the capital and other financial requirements of Japanese banking organizations. In this regard, the Board has considered as favorable factors that, in anticipation of implementation of the 3. The Metropolitan New York-New Jersey market is defined to Basle Committee risk-based capital framework, Appliinclude New York City and Long Island, New York; Putnam, Sullivan, Westchester, Rockland, and Orange Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union and Warren Counties in New Jersey; and portions of Fairfield County in Connecticut. 4. See Ljubljanska Banka-Associated Bank, 72 FEDERAL RESERVE BULLETIN 489 (1986); The Mitsubishi Trust and Banking Corporation, 72 FEDERAL RESERVE BULLETIN 256 (1986); The Industrial Bank of Japan, Ltd., 72 FEDERAL RESERVE BULLETIN 71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL RESERVE BULLETIN 518 (1984). See also Policy Statement on Supervision and Regulation of Foreign- 5. 53 Federal Register 8,549 (1988). Based Holding Companies, Federal Reserve Regulatory Service 6. Capital Adequacy Guidelines, 50 Federal Register 16,057 (1985), f 4-835 (1979). 71 FEDERAL RESERVE BULLETIN 445 (1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 625 cant has, through the issuance of common stock and By order of the Board of Governors, effective retention of earnings, increased its equity capital by July 11, 1988. approximately $225 million in its latest fiscal year, and by another $280 million in the first quarter of this fiscal Voting for this action: Chairman Greenspan and Governors Angell and Heller. Voting against this action: Governor year. The Board also notes that Applicant's capital Seger. Absent and not voting: Governors Johnson and Kelly. improvement program is consistent with meeting the standards in the Basle Committee capital framework JAMES MCAFEE Associate Secretary of the Board for 1990 and 1992. Based on these and other facts of record, including Dissenting Statement of Governor Seger certain commitments made by Applicant, the Board I dissent from the Board's action in this case. I believe concludes that the financial and managerial factors are that foreign banking organizations whose publicly reconsistent with approval of this application. Considerported capital, based on U.S. accounting principles, is ations relating to the convenience and needs of the well below the Board's capital guidelines for U.S. community to be served are also consistent with banking organizations have an unfair competitive adapproval. vantage in the United States over domestic banking Based upon the foregoing and other facts of record, organizations and should be judged against the same the Board has determined that consummation of the financial and managerial standards, including the transaction would be in the public interest and that the Board's capital adequacy guidelines, as are applied to application should be, and hereby is, approved. The domestic banking organizations. transaction shall not be consummated before the thir- In addition, I am concerned that while this applicatieth calendar day following the effective date of this tion would permit a large Japanese banking organiza- Order, or later than three months after the effective tion to acquire a bank in the U.S., U.S. banking date of this Order, and Bank shall be opened for organizations are not permitted to acquire banks in business not later than six months after the effective Japan. While some progress is being made in opening date of this Order. The latter two periods may be Japanese markets to U.S. banking organizations, U.S. extended for good cause by the Board or the Federal banking organizations and other financial institutions, Reserve Bank of New York, pursuant to delegated in my opinion, are still far from being afforded the full authority. opportunity to compete in Japan. July 11, 1988 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Baden Bancorp, Inc., Bank of New Baden, St. Louis July 15, 1988 Wilmington, Delaware New Baden, Illinois Lookingglass Banc Corp., Albers, Illinois 1889 Bankcorp, Pioneer Bank, Chicago June 21, 1988 East Lansing, Michigan North Branch, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 Federal Reserve Bulletin • September 1988 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Bank South Corporation, C&P Bank Corporation of Atlanta July 20, 1988 Atlanta, Georgia Pensacola, Pensacola, Florida Bank South Pensacola, Inc., The Citizens and Peoples Atlanta July 20, 1988 Atlanta, Georgia National Bank of Pensacola, Pensacola, Florida B.M.J. Financial Corp., Southern Ocean State Bank, Philadelphia July 5, 1988 Bordentown, New Jersey Little Egg Harbor Township, Tuckerton, New Jersey Britt Bancshares, Inc., First State Bank, Chicago June 30, 1988 St. Paul, Minnesota Britt, Iowa Cardinal Bancshares, Inc., Harco Bankshares, Inc., Cleveland June 28, 1988 Lexington, Kentucky Harlan, Kentucky CB&T Bancshares, Inc., Fort Rucker Bancshares, Inc., Atlanta July 20, 1988 Columbus, Georgia Chillicothe, Missouri Colorado Western Bancorp, Inc., First National Bank of Montrose, Kansas City June 29, 1988 Montrose, Colorado Montrose, Colorado Danville Bancshares, Inc., Danville State Savings Bank, Chicago June 22, 1988 Danville, Iowa Danville, Iowa Family Bancorp, The Family Mutual Savings Boston July 14, 1988 Haverhill, Massachusetts Bank, Haverhill, Massachusetts First Affiliated Bancorp, Inc., Watseka First National Bank, Chicago June 22, 1988 Watseka, Illinois Watseka, Illinois First Colonial Bankshares First Colonial Bank of Lake Chicago July 6, 1988 Corporation, County, Chicago, Illinois Vernon Hills, Illinois First Commercial Bancshares, Cahaba Bancorp, Atlanta July 18, 1988 Inc., Trussville, Alabama Jasper, Alabama First Financial Corporation, First Citizens of Paris, Inc., Chicago July 7, 1988 Terre Haute, Indiana Paris, Illinois The First Jermyn Corp., First Jessup Corp., Philadelphia June 23, 1988 Jermyn, Pennsylvania Jessup, Pennsylvania First Litchfield Financial The First National Bank of Boston June 20, 1988 Corporation, Litchfield, Litchfield, Connecticut Litchfield, Connecticut Firstmondovi, Inc., Bank of Mondovi, Minneapolis July 1, 1988 Mondovi, Wisconsin Mondovi, Wisconsin GEBSCO, Inc., Cochrane, Wisconsin FirstMorrill Co., Security State Bank, Kansas City July 1, 1988 Omaha, Nebraska Ansley, Nebraska First United Bancshares, Inc., First City Corp., St. Louis June 24, 1988 El Dorado, Arkansas Fort Smith, Arkansas FNBH Bancorp, Inc., First National Bank in Howell, Chicago July 19, 1988 Howell, Michigan Howell, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 627 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Fryburg Banking Company, First United National Bank, Cleveland July 11, 1988 Fryburg, Pennsylvania Fryburg, Pennsylvania Gillespie Bancshares, Inc., De Soto State Bank, Chicago June 23, 1988 De Soto, Wisconsin De Soto, Wisconsin Gustine-DeLeon Bancshares, The First State Bank, Dallas July 1, 1988 Inc., Gustine, Texas Gustine, Texas Hasten Bancorp, Sullivan State Bank, Chicago June 29, 1988 Indianapolis, Indiana Sullivan, Indiana Peoples State Bank, Farmersburg, Indiana First Bank and Trust Company of Clay County, Brazil, Indiana Farmers Banc, Inc., Tipton, Indiana Keystone Financial, Inc., Security National Bank, Philadelphia July 12, 1988 Harrisburg, Pennsylvania Pottstown, Pennsylvania Lincoln Financial Corporation, Peoples Bancshares Corporation, Chicago July 12, 1988 Fort Wayne, Indiana Van Wert, Ohio Lone Star Bancshares, Inc., Texas National Bank of Victoria, Dallas June 30, 1988 Victoria, Texas Victoria, Texas Market Street Bancshares, Inc., Peoples National Bank, St. Louis July 7, 1988 McLeansboro, Illinois McLeansboro, Illinois McCamey Financial Corporation, McCamey Bancshares, Inc., Dallas July 12, 1988 McCamey, Texas McCamey, Texas Montclair Bancorp, Inc., Montclair Savings Bank, New York July 13, 1988 Montclair, New Jersey Montclair, New Jersey NBA Holding Company, National Bank of Aledo, Chicago July 7, 1988 Davenport, Iowa Aledo, Illinois NSB Bancshares, Inc., The Nekoma State Bank, Kansas City July 14, 1988 La Crosse, Kansas LaCrosse, Kansas Northwest Bancorporation Inc., Northwest Bank, Dallas June 23, 1988 Houston, Texas Houston, Texas Northwest Illinois Bancorp, Inc., First State Bank and Trust Chicago July 15, 1988 Freeport, Illinois Company, Rockford, Illinois First State Financial Corporation of Rockford, Rockford, Illinois NWIB Acquisition Corporation, Inc., Freeport, Illinois Norwich Financial Corp., Norwich Savings Society, Boston July 8, 1988 Norwich, Connecticut Norwich, Connecticut Suburban Bancorp, Inc., Continental Bank of Oakbrook Chicago July 6, 1988 Palatine, Illinois Terrace, Oakbrook Terrace, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin • September 1988 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Terre DuLac Bancshares, Inc., Ozarks National Bank, St. Louis June 22, 1988 St. Louis, Missouri Lake Ozark, Missouri Tripoli Bancshares, Inc., Britt Bancshares, Inc., Chicago June 30, 1988 St. Paul, Minnesota St. Paul, Minnesota Two Rivers Corporation, Bank of Grand Junction, Kansas City July 20, 1988 Grand Junction, Colorado Grand Junction, Colorado Union Planters Corporation, The Citizens Bank, St. Louis July 18, 1988 Memphis, Tennessee Collierville, Tennessee Volunteer State Bancshares, Inc., BOC Bancorp, Inc., Atlanta June 24, 1988 Portland, Tennessee Woodbury, Tennessee Wright Bancgroup Company, Texas Bancorp Shares, Inc., Dallas July 8, 1988 San Antonio, Texas San Antonio, Texas Section 4 Nonbanking Reserve Effective Applicant Company/Activity Bank date Baer Holding Ltd., Harbor Capital Management New York July 8, 1988 Zurich, Switzerland Company, Inc., Boston, Massachusetts Bank of Montreal, Harris Government Securities, Chicago June 21, 1988 Montreal, Quebec, Canada Inc., Bankmont Financial Corporation, Chicago, Illinois Wilmington, Delaware The Bank of Tokyo to engage in providing investment New York June 30, 1988 Tokyo,Japan or financial advice; and providing investment advice on financial futures and options on futures as a commodities trading advisor First Bank System, Inc., Caylor Financial Services of Minneapolis June 24, 1988 Minneapolis, Minnesota Wisconsin, Inc., Brookfield, Wisconsin First Bank System, Inc., Midwestern Brokerage, Inc., Minneapolis July 15, 1988 Minneapolis, Minnesota d.b.a. Stock's Insurance Services, Willmar, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 629 Sections 3 and 4 . .. Nonbanking Reserve Effective pp Company/Activity Bank date NBD Bancorp, Inc., Charter Bank Group, Inc., Chicago July 13, 1988 Detroit, Michigan Northfield, Illinois NBD Midwest Corporation, Detroit, Michigan APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Reserve Effective Applicant Bank(s) Bank date Bank One, Mansfield, Bank One, Ashland, Cleveland July 13, 1988 Mansfield, Ohio Ashland, Ohio Sovran Bank/Central South, Sovran Bank/Williamson County, Atlanta July 1, 1988 Nashville, Tennessee Franklin, Tennessee PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Whitney v. United States, et al., No. CA3-88-1596-H Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, March 18, (N.D. Tex., filed July 7, 1988). March 30, April 7, 1988). Credit Union National Association, Inc., et al., v. Teichgraeber v. Board of Governors, No. 87-2505-0 Board of Governors, No. 88-1295 (D.D.C. May 13, (D. Kan., filed Oct. 16, 1987). 1988). Northeast Bancorp v. Board of Governors, No. Bonilla v. Board of Governors, No. 88-1464 (7th Cir., 87-1365 (D.C. Cir., filed July 31, 1987). filed March 11, 1988). National Association of Casualty & Insurance Agents Cohen v. Board of Governors, No. 88-1061 (D.N.J., v. Board of Governors, Nos. 87-1354, 87-1355 (D.C. filed March 7, 1988). Cir., filed July 29, 1987). Stoddard v. Board of Governors, No. 88-1148 (D.C. The Chase Manhattan Corporation v. Board of Gov- Cir., filed Feb. 25, 1988). ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987). Independent Insurance Agents of America, Inc. v. Lewis v. Board of Governors, Nos. 87-3455, 87-3545 Board of Governors, No. 87-1686 (D.C. Cir., filed (11th Cir., filed June 25, Aug. 3, 1987). Nov. 19, 1987). Securities Industry Association v. Board of Gover- National Association of Casualty and Surety Agents, nors, et al., No. 87-1169 (D.C. Cir., filed April 17, et al., v. Board of Governors, Nos. 87-1644, 1987). 87-1801, 88-1001, 88-1206, 88-1245, 88-1270 (D.C. CBC, Inc. v. Board of Governors, No. 86-1001 (10th Cir., filed Jan. 2, 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 Membership of the Board of Governors of the Federal Reserve System, 1913-88 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg... .New York .do, Term expired Aug. 9, 1918. Frederic A. Delano .Chicago .do Resigned July 21, 1918. W.P.G. Harding .... .Atlanta .do Term expired Aug. 9, 1922. Adolph C. Miller ... .San Francisco .do Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss New York .Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah Chicago.... .Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt New York .June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills Cleveland... .Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell Minneapolis .May 12, 1921 Resigned May 12, 1923. Milo D. Campbell Chicago .Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger Cleveland... .May 1, 1923 Resigned Sept. 15, 1927. George R. James St. Louis.... .May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.4 Edward H. Cunningham...Chicago do Died Nov. 28, 1930. Roy A. Young Minneapolis . .Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York ... .Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee Kansas City. .May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta .May 19, 1933 Resigned Aug. 15, 1934. M.S. Szymczak Chicago .June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas Kansas City... do Served until Feb. 10, 1936.3 Marriner S. Eccles San Francisco .Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York ... .Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee Cleveland.... do Served until Apr. 4, 1946.3 Ronald Ransom Atlanta do Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas .Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis Richmond.... .June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper New York ... .Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans Richmond... .Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. ..St. Louis .Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton Boston .Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe Philadelphia .Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton Atlanta .Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell Minneapolis. do Resigned June 30, 1952. Wm. McC. Martin, Jr New York ... .April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr San Francisco .Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson Kansas City... do Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston Philadelphia... .Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller Minneapolis ... .Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson Dallas .Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr Atlanta .Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell Chicago Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

631 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 J. Dewey Daane .Richmond Nov. 29, 1963 Served until Mar. 8, 1974.3 Sherman J. Maisel ... .San Francisco Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer. .Philadelphia Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill.. .Dallas May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns .New York Jan. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan .St. Louis Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher .San Francisco June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland .Kansas City June 11, 1973 Resigned May 15, 1976. Henry C. Wallich .Boston Mar. 8, 1974 Resigned Dec. 15, 1986. Philip E. Cold well .Dallas Oct. 29, 1974 Served through Feb. 29, 1980. Philip C. Jackson, Jr. .Atlanta July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee .Richmond Jan. 5, 1976 Served until Feb. 7, 1986.3 Stephen S. Gardner.... .Philadelphia Feb. 13, 1976 Died Nov. 19, 1978 David M. Lilly .Minneapolis June 1, 1976 Resigned Feb. 24, 1978. G. William Miller .San Francisco Mar. 8, 1978 Resigned Aug. 6, 1979. Nancy H. Teeters .Chicago Sept. 18, 1978 Served through June 27, 1984. Emmett J. Rice .New York June 20, 1979 Resigned Dec. 31, 1986. Frederick H. Schultz.. .Atlanta July 27, 1979 Served through Feb. 11, 1982. Paul A. Volcker .Philadelphia Aug. 6, 1979 Resigned August 11, 1987. Lyle E. Gramley .Kansas City May 28, 1980 Resigned Sept. 1, 1985. Resigned April 30, 1986. Preston Martin .San Francisco Mar. 31, 1982 Martha R. Seger .Chicago July 2, 1984 Wayne D. Angell .Kansas City Feb. 7, 1986 Manuel H. Johnson.... .Richmond Feb. 7, 1986 H. Robert Heller .San Francisco Aug. 19, 1986 Edward W. Kelley, Jr. .Dallas May 26, 1987 Alan Greenspan .New York. Aug. 11, 1987 John P. LaWare .Boston Aug. 15, 1988 Chairmen4 Vice Chairmen4 Charles S. Hamlin .Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano Aug 10, 1914-Aug. 9, 1916 W.P.G. Harding .Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg Aug 10, 1916-Aug. 9, 1918 Daniel R. Crissinger... .May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young .Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer .Sept. 16, 1930-May 10, 1933 J.J. Thomas Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black .May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles .Nov. 15, 1934-Jan. 31, 1948 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe ... .Apr. 15, 1948-Mar. 31, 1951 J.L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. .Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell May 1, 1973-Feb. 13, 1976 Arthur F. Burns .Feb. 1, 1970-Jan. 31, 1978 Stephen S. Gardner Feb. 13, 1976-Nov. 19, 1978 G. William Miller .Mar. 8, 1978-Aug. 6, 1979 Frederick H. Schultz July 27, 1979-Feb. 11, 1982 Paul A. Volcker .Aug. 6, 1979-Aug 11, 1987 Preston Martin Mar. 31, 1982-Mar. 31, 1986 Alan Greenspan .Aug. 11, 1987- Manuel H. Johnson Aug. 22, 1986- EX-OFFICIO MEMBERS1 Secretaries of the Treasury Comptrollers of the Currency W.G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams ...Feb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes May 1, 1923-Dec. 17, 1924 Andrew W. Mellon Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J.W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J.F.T. O'Connor May 11, 1933-Feb. 1, 1936 Henry Morgenthau, Jr. .Jan. 1, 1934-Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act, the Secretary of the Treasury and the Comptroller of the Currency Federal Reserve Board was composed of seven members, including should continue to serve as members until Feb. 1, 1936, or until five appointive members, the Secretary of the Treasury, who was their successors were appointed and had qualified; and that ex-omcio chairman of the Board, and the Comptroller of the thereafter the terms of members should be fourteen years and that Currency. The original term of office was ten years, and the five the designation of Chairman and Vice Chairman of the board should original appointive members had terms of two, four, six, eight, and be for a term of four years. ten years respectively. In 1922 the number of appointive members 2. Date after words "Resigned" and "Retired" denotes final day was increased to six, and in 1933 the term of office was increased to of service. twelve years. The Banking Act of 1935, approved Aug. 23, 1935, 3. Successor took office on this date. changed the name of the Federal Reserve Board to the Board of 4. Chairman and Vice Chairman were designated Governor and Governors of the Federal Reserve System and provided that the Vice Governor before Aug 23, 1935. Board should be composed of seven appointive members; that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 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 FINANCIAL MARKETS A4 Reserves of depository institutions, Reserve 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 A9 Federal Reserve open market transactions FEDERAL FINANCE A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays FEDERAL RESERVE BANKS A30 Federal debt subject to statutory limitation A10 Condition and Federal Reserve note statements A30 Gross public debt of U.S. Treasury—Types All Maturity distribution of loan and security and ownership holdings A31 U.S. government securities dealers— Transactions A32 U.S. government securities dealers—Positions MONETARY AND CREDIT AGGREGATES and financing A33 Federal and federally sponsored credit A12 Aggregate reserves of depository institutions agencies—Debt outstanding and monetary base A13 Money stock, liquid assets, and debt measures A15 Bank debits and deposit turnover A16 Loans and securities—All commercial banks SECURITIES MARKETS AND CORPORATE FINANCE A34 New security issues—State and local COMMERCIAL BANKING INSTITUTIONS governments and corporations A17 Major nondeposit funds A35 Open-end investment companies—Net sales A18 Assets and liabilities, last-Wednesday-of-month and asset position series A35 Corporate profits and their distribution Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

43 Federal Reserve Bulletin • September 1988 A36 Total nonfarm business expenditures on new A55 Foreign branches of U.S. banks—Balance plant and equipment sheet 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 A42 Funds raised in U.S. credit markets ENTERPRISES IN THE UNITED STATES 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 A66 Marketable U.S. Treasury bonds and notes— SELECTED MEASURES Foreign transactions A44 Nonfinancial business activity—Selected measures A45 Labor force, employment, and unemployment INTEREST AND EXCHANGE RATES A46 Output, capacity, and capacity utilization A67 Discount rates of foreign central banks A47 Industrial production—Indexes and gross value A67 Foreign short-term interest rates A49 Housing and construction A68 Foreign exchange rates A50 Consumer and producer prices A51 Gross national product and income A52 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases and Special Tables International Statistics SPECIAL TABLES SUMMARY STATISTICS A70 Terms of lending at commercial banks, A53 U.S. international transactions—Summary May 2-6, 1988 A54 U.S. foreign trade A76 Terms of lending at commercial banks, A54 U.S. reserve assets November 2-6, 1987 A54 Foreign official assets held at Federal Reserve A82 Assets and liabilities, U.S. branches and Banks agencies of foreign banks, March 31, 1988 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) Item 1987 Q3 Q4 Q1 Q2 Feb. Mar. Apr. Mayr Reserves of depository institutions2 1 Total -.9 2.5 3.5 5.8 2.3 3.8 12.3 -.2 2 Required .3 1.4 2.9 7.2 5.7 8.0 13.9 -3.8 3 Nonborrowed .3 2.4 1.5 -6.5 16.5 -23.7 -13.0 8.5 4 Monetary base 5.1 7.8 8.3 7.6 6.0 5.9 11.4 5.0 Concepts of money, liquid assets, and debt4 5 Ml 3.9 3.8r 6.2 1.1 5.5 11.2 .0 6 M2 2.8 3.9 6.7 7.9 8.7' 8.8 9.8' 4.9 7 M3 4.5 5.4 7.0r 7.1 10.6' 8.1' 7.2 4.4 8 L 4.3 5.7r 6.5r n.a. 8.6r 7.3' 11.5' 7.7 9 Debt 7.9 10.1 8.3' 8.4 7.9' 8.7' 8.3' 8.0 Nontransaction components 1 1 0 1 I I n n M M3 2 5 only6 131..60 1 3 1 . . 9 3 7 7 . . 8 9 r r 8 4 . . 5 2 1 1 1 8 . . 2 3 ' 9 5 . . 9 4 ' -2 9 . . 5 4 ' ' 6 2. .5 8 Time and savings deposits Commercial banks 11.0 12 Savings 10.1 .7 6.3 13.4 14.6 6.5' 11.7 13 Small-denomination time 7.4 14.8 13.7 11.7 17.6 11.6 15.1 6.3 14 Large-denomination time9' 6.8 10.5 3.4' 7.4 17.2r 5.5' -2.2' 11.8 Thrift institutions 15 Savings 7.0 -3.8 -2.4 6.8 -.5 7.1 10.1 3.5 16 Small-denomination time 9.3 16.0 21.3 14.2 25.0 18.0 13.8' 10.7 17 Large-denomination time9 9.9 22.2 15.7 8.5 16.2 1.5 15.3 6.5 Debt components4 1 1 9 8 N Fe o d n e f r e a d l eral 5 8. . 5 8 lo7..6y 9 8. .3 0 r 8 8 . . 2 5 1 6 1. . 2 9 ' 1 6 5 . . 8 2 ' 7 8 . . 1 7 ' 2 9. . 7 7 20 Total loans and securities at commercial banks 6.2 5.5 5.1 10.8 9.3 7.9 11.4 13.0 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-only), 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: Ml 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. official institutions. Excludes 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 • September 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 Apr. May June May 18 May 25 June 1 June 8 June 15 June 22 June 29 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 248,228 249,800 251,010 251,276 244,363 247,754 250,998 250,624 250,967 252,634 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 221,348 223,732 225,333 225,250 219,342 222,515 224,968 224,931 224,955 226,509 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 220,204 222,187 224,690 223,123 219,342 222,515 224,968 224,931 224,955 224,495 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 1,144 1,545 643 2,127 0 0 0 0 0 2,014 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 7,665 7,777 7,590 7,776 7,268 7,268 7,268 7,268 7,268 8,327 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,347 7,272 7,268 7,268 7,268 7,268 7,268 7,268 7,268 7,268 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 318 505 322 508 0 0 0 0 0 1,059 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 3,081 2,592 3,040 2,270 2,911 3,329 3,278 3,651 3,034 2,281 1111100000 FFFFFllllloooooaaaaattttt 694 649 478 767 724 483 842 359 845 519 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 15,440 15,050 14,569 15,213 14,118 14,158 14,642 14,415 14,865 14,998 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,063 11,063 11,063 11,063 11,063 11,063 11,063 11,063 11,063 11,063 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 18,366 18,427 18,478 18,425 18,439 18,452 18,462 18,472 18,482 18,492 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 228,362 230,482 233,525 230,569 230,479 232,125 233,567 233,640 233,382 233,267 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss22222 484 475 455 479 470 465 458 459 457 449 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 5,047 7,276 4,306 5,9% 3,176 3,210 2,682 3,110 4,252 6,529 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 240 259 243 244 254 287 215 236 257 235 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 2,000 1,922 1,949 1,897 1,980 1,963 2,016 1,827 1,938 1,811 2222200000 OOOOOttttthhhhheeeeerrrrr 364 360 329 322 339 483 312 304 322 363 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 7,328 7,302 7,348 7,443 7,302 7,195 7,101 7,463 7,417 7,510 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 38,850 36,231 37,413 38,832 34,885 36,559 39,189 38,140 37,506 37,045 End-of-month figures Wednesday figures 1988 1988 Apr. May June May 18 May 25 June 1 June 8 June 15 June 22 June 29 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 260,242 248,274 254,647 244,790 240,806 249,010 251,056 253,545 248,875 256,429 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 230,971 223,192 227,636 218,978 215,217 222,831 225,293 226,697 223,663 228,438 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 223,363 223,192 222,450 218,978 215,217 222,831 225,293 226,697 223,663 223,010 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 7,608 0 5,186 0 0 0 0 0 0 5,428 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 10,074 7,268 9,508 7,268 7,268 7,268 7,268 7,268 7,268 9,821 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,279 7,268 7,268 7,268 7,268 7,268 7,268 7,268 7,268 7,268 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss,,,,, ,,,,, 2,795 0 2,240 0 0 0 0 0 0 2,553 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 2,590 3,304 2,464 2,905 2,834 3,021 3,318 4,388 2,297 2,244 3333322222 FFFFFllllloooooaaaaattttt 371 122 259 1,203 709 1,705 768 624 861 522 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 16,236 14,388 14,780 14.436 14,778 14,185 14,409 14,568 14,786 15,404 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,063 11,063 11,063 11,063 11,063 11,063 11,063 11,063 11,063 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 18,395 18,451 18,501 18.437 18,451 18,461 18,471 18,481 18,491 18,501 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 228,308 232,758 235,513 230,666 231,090 233,259 233,827 233,776 233,246 234,426 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss22222 479 459 432 470 467 458 459 458 452 432 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 16,186 2,871 9,762 2,610 4,382 3,402 3,170 3,787 4,122 8,216 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 215 298 382 260 227 302 198 219 204 203 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,660 1,660 1,655 1,674 1,660 1,660 1,653 1,653 1,657 1,657 4444422222 OOOOOttttthhhhheeeeerrrrr 360 427 351 320 565 427 302 363 275 359 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaa]]]]] 7,450 7,235 7,109 7,120 7,206 6,910 7,042 7,235 7,265 7,394 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss33333 40,060 37,098 34,026 36,188 29,741 37,134 38,958 40,616 36,227 38,325 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. Nov. Dec. Jan. Feb. Mar. Apr. May 1 Reserve balances with Reserve Banks2 27,620 37,360 37,673 37,453 37,673 37,485 34,211 36,027 38,429 36,509 2 Total vault cash 22,953 24,079 26,155 25,431 26,155 26,919 28,119 25,926 25,200 25,873 3 Vault 20,522 22,199 24,449 23,752 24,449 25,155 25,836 24,049 23,636 24,172 4 Surplus 2,431 1,879 1,706 1,679 1,706 1,764 2,283 1,877 1,564 1,700 5 Total reserves6 48,142 59,560 62,123 61,205 62,123 62,640 60,047 60,076 62,064 60,681 6 Required reserves 47,085 58,191 61,094 60,282 61,094 61,345 58,914 59,147 61,205 59,641 7 Excess reserve balances at Reserve Banks' 1,058 1,369 1,029 923 1,029 1,295 1,133 929 859 1,040 8 Total borrowings at Reserve Banks 1,318 827 777 625 777 1,082 396 1,752 2,993 2,578 9 Seasonal borrowings at Reserve Banks 56 38 93 126 93 59 75 119 146 246 10 Extended credit at Reserve Banks 499 303 483 394 483 372 205 1,478 2,624 2,107 Biweekly averages of daily figures for weeks ending 1988 Mar. 9 Mar. 23 Apr. 6 Apr. 20 May 4 May 18 June 1 June 15r June 29 July 13 11 Reserve balances with Reserve Banks2 35,575 35,761 37,003 39,123 38,313 36,737 35,707 38,644 37,260 38,821 12 Total vault cash3 25,987 26,224 25,336 25,205 25,112 25,726 26,265 25,118 26,237 26,270 1 1 4 3 V S a u u r l p t lu . s t 5... 23 1 , , 9 9 9 8 8 9 24 1 , , 3 8 3 9 2 2 23 1 , , 6 7 1 2 0 6 23 1 , , 7 4 0 9 9 7 23 1 , , 5 5 4 6 9 3 24 1 , , 1 6 2 0 2 4 24 1 , , 4 8 1 4 8 7 23 1 , , 6 5 1 0 4 4 24 1 , , 4 7 9 4 2 5 24 1 , , 6 6 2 4 8 2 15 Total reserves 59,573 60,093 60,613 62,831 61,862 60,859 60,125 62,258 61,752 63,449 16 Required reserves 58,607 59,182 59,696 62,145 60,7% 59,959 58,943r 61,563 60,692 62,575 17 Excess reserve balances at Reserve Banks 966 911 917 686 1,067 901 1,182'' 6% 1,060 874 18 Total borrowings at Reserve Banks 537 1,924 2,817 3,619 2,224 2,175 3,120 3,465 2,658 3,656 19 Seasonal borrowings at Reserve Banks .. 111 123 122 124 191 241 269 287 337 352 20 Extended credit at Reserve Banks8 255 1,685 2,494 3,278 1,787 1,798 2,538 2,986 2,138 2,340 1. These data also appear in the Board's H.3 (502) release. For address, see in- with Federal Reserve Banks, which exclude required clearing balances and side front cover. adjustments to compensate for float, plus vault cash used to satisfy reserve 2. Excludes required clearing balances and adjustments to compensate for requirements. Such vault cash consists of all vault cash held during the lagged float. computation period by institutions having required reserve balances at Federal 3. Dates refer to the maintenance periods in which the vault cash can be used Reserve Banks plus the amount of vault cash equal to required reserves during the to satisfy reserve requirements. Under contemporaneous reserve requirements, maintenance period at institutions having no required reserve balances. maintenance periods end 30 days after the lagged computation periods in which 7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy the balances are held. 4. Equal to all vault cash held during the lagged computation period by reserve requirements less required reserves. institutions having required reserve balances at Federal Reserve Banks plus the 8. Extended credit consists of borrowing at the discount window under the amount of vault cash equal to required reserves during the maintenance period at terms and conditions established for the extended credit program to help institutions having no required reserve balances. depository institutions deal with sustained liquidity pressures. Because there is 5. Total vault cash at institutions having no required reserve balances less the not the same need to repay such borrowing promptly as there is with traditional amount of vault cash equal to their required reserves during the maintenance short-term adjustment credit, the money market impact of extended credit is period. similar to that of nonborrowed reserves. 6. Total reserves not adjusted for discontinuities consist of reserve balances 9. Data are prorated monthly averages of biweekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • September 1988 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1987 week ending Monday Maturity and source Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 Jan. 4 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 70,725 70,174 75,638 75,774 70,856 67,536 75,090 75,188 2 For all other maturities 10,190 11,547 9,694 9,608 8,953 9,409 8,611 9,297 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 26,265 24,679 29,930 27,276 24,725 22,860 23,602 28,254 4 For all other maturities 7,762 8,848 7,160 7,468 6,968 7,191 6,886 5,920 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 13,972 13,136 13,388 14,052 14,741 12,170 15,781 14,660 6 For all other maturities 12,622 13,982 13,240 13,274 12,119 12,603 8,110 10,653 All other customers 7 For one day or under continuing contract 27,840 24,071 27,077 27,093 24,887 24,512 25,793 27,673 8 For all other maturities 9,662 13,855 9,972 9,942 9,886 12,018 9,675 9,984 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 29,895 32,952 31,276 30,472 31,147 30,352 34,041 35,783 10 To all other specified customers 12,211 11,190 11,795 11,027 11,062 10,326 10,793 12,665 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 Extended credit2 AAddjjuussttmmeenntt ccrreeddiitt aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk On Effective Previous On Effective Previous On Effective Previous Effective date 7/27/88 date rate 7/27/88 date rate 7/27/88 date rate Vl SVi Boston 6 9/9/87 5 6 9/9/87 8.25 7/14/88 8.05 6/30/88 New York 9/4/87 9/4/87 7/14/88 6/30/88 Philadelphia 9/4/87 9/4/87 7/14/88 6/30/88 Cleveland 9/4/87 9/4/87 7/14/88 6/30/88 Richmond 9/5/87 9/5/87 7/14/88 6/30/88 Atlanta 9/4/87 9/4/87 7/14/88 6/30/88 Chicago 9/4/87 9/4/87 7/14/88 6/30/88 St. Louis 9/9/87 9/9/87 7/14/88 6/30/88 Minneapolis 9/8/87 9/8/87 7/14/88 6/30/88 Kansas City 9/4/87 9/4/87 7/14/88 6/30/88 Dallas 9/11/87 5Vi 9/11/87 SVi 7/14/88 6/30/88 San Francisco ... 6 9/9/87 6 9/9/87 8.25 7/14/88 8.05 6/30/88 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 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 Vl 1980-——JJuullyy 78 10-11 10 1984—Apr. 9 8W-9 9 1978— J M J u a l a n y y . 2 1 1 1 3 9 2 1 0 0 6 6 7- - 6 7 7 V V 6 1 V 1 W / l 4 4 i - 7 7 1 7 I 6 6 V V V 2 4 * 1981-—— D N S MM e e o aa p c v yy t . . . 7 1 7 9 5 5 7 6 , , . . 1 1 3 2 1 1 1 - - 0 1 2 1 1 4 3 1 1 1 1 1 0 2 3 4 1 1985— D N M e o a c v y . . 2 2 2 2 1 1 4 0 6 3 l 8 V 8 i W V 9 8 V i -9 - i i % 9 8 I 8 I 8 V V V V i i i i Aug. 21 73/4 73/4 8 14 14 24 O Se c p t. t . 2 1 2 6 8-8 8 V l 8 8 V V l l Nov. 6 ? 13 1 - 3 1 4 1 1 3 3 1986—Mar. 7 1- 1 l Vi 7 20 m8-W^ /i 8 Vl Dec. 4 12 12 10 6V1-1 7 Vi Nov. 1 3 9 Vl 9 9 Vi 1982---JJuullyy ? ? 0 3 11iWm-1 V 2 l 1 1 1 1 V V i i J A A u u p ly g r. . 2 1 1 1 1 2 5V6 V 1 l -6 6 6 5 V V i l 1979—July 20 10 Vl 10 Aug. ? 11-11 11 22 5 5 Aug. 17 10-10 10W < 11 11 20 10W 10W 16 lOVi 10W 1987—Sept. 4 5W-6 6 Sept. 19 10W-11 11 ?7 10-10W 10 11 6 6 21 11 11 30 10 1 0V i Oct. 8 11-12 12 Oct. 1? 9W V-10i 9 Vi IInn eeffffeecctt JJuullyy 2277,, 11998888 6 6 10 12 12 n 9 Vl 9 Nov. ?? 9-9 9 1980— M Fe a b y . 2 1 1 9 9 5 1 1 2 2 1 - - 3 1 1 3 3 1 1 1 3 3 3 Dec. 7 I1 1 S 6 4 7 m9 V - 9 l 9m 9 V l 30 12 12 8 8 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 Vi 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 experiencing difficulties adjusting to changing market conditions over a longer Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the period of time. formula for applying the surcharge was changed from a calendar quarter to a 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 • September 1988 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the Type of deposit, and Monetary Control Act deposit interval Effective date Net transaction accounts ' $0 million-$40.5 million 12/15/87 More than $40.5 million ... 12/15/87 Nonpersonal time deposits5 By original maturity Less than 1 Vi years 10/6/83 1 Vi years or more 10/6/83 Eurocurrency liabilities All types 11/13/80 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 than six preauthorized, automatic, or other transfers per month, of which no more corporations. 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 deposits subject to time deposit reserve requirements). 97-320) requires that $2 million of reservable liabilities (transaction accounts, 4. The Monetary Control Act of 1980 requires that the amount of transaction nonpersonal time deposits, and Eurocurrency liabilities) of each depository accounts against which the 3 percent reserve requirement applies be modified institution be subject to a zero percent reserve requirement. The Board is to adjust annually by 80 percent of the percentage increase in transaction accounts held by the amount of reservable liabilities subject to this zero percent reserve require- all depository institutions, determined as of June 30 each year. Effective Dec. 15, ment each year for the succeeding calendar year by 80 percent of the percentage 1987 for institutions reporting quarterly and Dec. 29, 1987 for institutions increase in the total reservable liabilities of all depository institutions, measured reporting weekly, the amount was increased from $36.7 million to $40.5 million. on an annual basis as of June 30. No corresponding adjustment is to be made in 5. In general, nonpersonal time deposits are time deposits, including savings the event of a decrease. On Dec. 15, 1987, the exemption was raised from $2.9 deposits, that are not transaction accounts and in which a beneficial interest is million to $3.2 million. In determining the reserve requirements of depository held by a depositor that is not a natural person. Also included are certain institutions, the exemption shall apply in the following order: (1) net NOW transferable time deposits held by natural persons and certain obligations issued accounts (NOW accounts less allowable deductions); (2) net other transaction to depository institution offices located outside the United States. For details, see accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting section 204.2 of Regulation D. with those with the highest reserve ratio. With respect to NOW accounts and 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 Nov. Dec. Jan. Feb. Mar. Apr. May U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 22,214 22,602 18,983 3,388 150 0 346 560 423 0 2 Gross sales 4,118 2,502 6,050 0 0 49 538 0 0 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,500 1,000 9,029 0 0 600 1,600 0 0 0 Others within 1 year 5 Gross purchases 1,349 190 3,658 670 479 0 0 0 1,092 0 6 Gross sales 0 0 300 0 0 0 0 0 0 0 7 Maturity shift 19,763 18,673 21,502 2,247 1,400 950 1,939 2,051 868 1,646 8 Exchange -17,717 -20,179 -20,388 -3,728 -1,742 -754 -2,868 -2,089 -1,688 -4,324 9 Redemptions 0 0 70 70 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 2,185 893 10,231 50 2,589 0 0 0 3,661 0 11 Gross sales 0 0 452 0 0 0 800 0 0 0 12 Maturity shift -17,459 -17,058 -17,974 -1,900 -1,400 -840 -952 -2,051 -823 -1,102 13 Exchange 13,853 16,984 18,938 3,278 1,742 749 2,643 2,089 1,434 3,724 5 to 10 years 14 Gross purchases 458 236 2,441 0 596 0 0 0 1,017 0 15 Gross sales 100 0 0 0 0 0 175 0 0 0 16 Maturity shift -1,857 -1,620 -3,529 -347 0 -110 -987 0 -45 -387 17 Exchange 2,184 2,050 950 300 0 5 150 0 254 400 Over 10 years 18 Gross purchases 293 158 1,858 0 445 0 0 0 966 0 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 -157 21 Exchange 1,679 1,150 500 150 0 0 75 0 0 200 All maturities 22 Gross purchases 26,499 24,078 37,171 4,108 4,259 0 346 560 7,160 0 23 Gross sales 4,218 2,502 6,802 0 0 49 1,513 0 0 0 24 Redemptions 3,500 1,000 9,099 70 0 600 1,600 0 0 0 Matched transactions 25 Gross sales 866,175 927,997 950,923 85,288 104,833 78,358 97,892 104,527 86,900 115,287 26 Gross purchases 865,968 927,247 950,935 85,494 105,917 78,513 99,139 104,572 85,608 115,115 Repurchase agreements2 27 Gross purchases 134,253 170,431 314,620 15,853 23,512 10,591 0 0 18,696 15,871 28 Gross sales 132,351 160,268 324,666 18,751 25,264 14,237 0 0 11,088 23,478 29 Net change in U.S. government securities 20,477 29,989 11,235 1,346 3,591 -4,140 -1,520 605 13,476 -7,779 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 162 398 276 1 13 131 21 3 120 11 Repurchase agreements2 33 Gross purchases 22,183 31,142 80,353 6,786 9,718 4,042 0 0 4,243 4,771 34 Gross sales 20,877 30,522 81,351 7,425 10,679 5,357 0 0 1,447 7,566 35 Net change in federal agency obligations 1,144 222 -1,274 -640 -975 -1,446 -21 -3 2,676 -2,807 36 Total net change in System Open Market 21,621 30,211 9,961 706 2,617 -5,586 -1,541 602 16,151 -10,585 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 • September 1988 t.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1988 1988 June 1 June 8 June 15 June 22 June 29 Apr. May June Consolidated condition statement ASSETS 1 Gold certificate account 11,063 11,063 11,063 11,063 11,063 11,063 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 3 393 379 385 395 380 450 402 369 Loans 4 To depository institutions 3,021 3,318 4,388 2,297 2,244 2,590 3,304 2,464 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 7,268 7,268 7,268 7,268 7,268 0 0 7,268 Federal agency obligations 7 Bought outright 0 0 00 0 22,,555533 77,,227799 77,,226688 22,,224400 8 Held under repurchase agreements 0 0 0 0 0 2,795 0 0 U.S. Treasury securities Bought outright 9 Bills 105,854 108,316 109,720 106,686 106,033 106,386 106,215 110055,,447733 10 Notes 87,484 87,484 87,484 87,484 87,484 87,684 87,484 87,484 11 Bonds 29,493 29,493 29,493 29,493 29,493 29,293 29,493 29,493 12 Total bought outright2 222,831 225,293 226,697 223,663 223,010 223,363 223,192 222,450 13 Held under repurchase agreements 0 0 0 0 5,428 7,608 0 5,186 14 Total U.S. Treasury securities 222,831 225,293 226,697 223,663 228,438 230,971 223,192 227,636 15 Total loans and securities 233,120 235,879 238,353 233,228 240,503 243,635 233,764 239,608 16 Items in process of collection 10,654 6,910 7,591 7,133 6,155 7,577 5,354 6,604 17 Bank premises 724 727 727 727 725 719 723 727 Other assets 18 Denominated in foreign currencies 6,353 6,353 6,363 6,364 6,457 6,446 6,349 6,226 19 All other4 7,108 7,329 7,478 7,695 8,222 9,071 7,316 7,827 20 Total assets 274,433 273,658 276,978 271,623 278,523 283,979 269,989 277,442 LIABILITIES 71 Federal Reserve notes 215,649 216,193 216,138 215,601 216,736 210,842 215,168 217,812 Deposits V. To depository institutions 38,794 40,611 42,269 37,884 39,982 41,720 38,758 35,681 73 U.S. Treasury—General account 3,402 3,170 3,787 4,122 8,216 16,186 2,871 9,762 24 Foreign—Official accounts 302 198 219 204 203 215 298 382 25 Other 427 302 363 275 359 360 427 351 26 Total deposits 42,925 44,281 46,638 42,485 48,760 58,481 42,354 46,176 77 Deferred credit items 8,949 6,142 6,967 6,272 5,633 7,206 5,232 6,345 28 Other liabilities and accrued dividends5 2,509 2,499 2,691 2,711 2,847 2,861 2,539 2,819 29 Total liabilities 270,032 269,115 272,434 267,069 273,976 279,390 265,293 273,152 CAPITAL ACCOUNTS 30 Capital paid in 2,102 2,104 2,105 2,106 2,110 2,096 2,101 2,110 31 Surplus 2,047 2,047 2,047 2,047 2,047 2,047 2,047 2,039 32 Other capital accounts 252 392 392 401 390 446 548 141 33 Total liabilities and capital accounts 274,433 273,658 276,978 271,623 278,523 283,979 269,989 277,442 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international account 231,066 228,359 227,312 231,215 226,364 229,054 230,917 228,226 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 258,657 258,811 259,571 260,146 260,133 256,806 258,661 260,049 36 LESS: Held by bank 43,008 42,618 43,433 44,545 43,397 45,964 43,493 42,237 37 Federal Reserve notes, net 215,649 216,193 216,138 215,601 216,736 210,842 215,168 217,812 Collateral held against notes net: 38 Gold certificate account 11,063 11,063 11,063 11,063 11,063 11,063 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 199,568 200,112 200,057 199,520 200,655 194,761 199,087 201,731 42 Total collateral 215,649 216,193 216,138 215,601 216,736 210,842 215,168 217,812 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 Type and maturity groupings 1988 June 1 June 8 June 15 June 22 Apr. 29 May 31 1 Loans—Total 3,021 3,318 4,388 2,297 2,244 2,590 3,282 2 Within 15 days 2,855 3,164 4,219 2,238 2,184 2,523 3,185 3 16 days to 90 days 1606 1504 1609 509 600 607 907 4 91 days to 1 year 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 8 91 days to 1 year 9 U.S. Treasury securities—Total .. 222,831 225,293 226,697 223,663 228,438 230,971 223,192 10 Within 15 days' 11,301 12,798 11,377 11,341 16,317 15,082 7,372 U 16 days to 90 days 48,942 53,830 53,455 50,607 50,356 55,856 53,232 12 91 days to 1 year 67,115 63,192 66,392 66,242 66,292 66,950 67,115 13 Over 1 year to 5 years 53,530 53,530 53,530 53,530 53,530 51,196 53,530 14 Over 5 years to 10 years 15,435 15,435 15,435 15,435 15,435 15,422 15,435 15 Over 10 years 26,508 26,508 26,508 26,508 26,508 26,465 26,508 16 Federal agency obligations—Total 7,268 7,268 7,268 7,268 9,821 10,074 7,268 17 Within 15 days' 25 25 28 258 2,783 2,936 246 18 16 days to 90 days 661 • 867 919 689 694 659 661 19 91 days to 1 year 2,028 1,822 1,790 1,790 1,808 1,837 1,728 20 Over 1 year to 5 years 3,230 3,230 3,207 3,207 3,204 3,292 3,309 21 Over 5 years to 10 years 1,135 1,135 1,135 1,135 1,143 1,161 1,135 22 Over 10 years 189 189 189 189 189 189 189 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 • September 1988 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1987 1988 IItteemm DD 1199 ee 88 cc 44 .. DD 1199 ee 88 cc 55 .. DD 1199 ee 88 cc 66 .. DD 1199 ee 88 cc 77 .. Nov. Dec. Jan. Feb. Mar. Apr. May June Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 40.96 47.26 57.46 58.72 59.05 58.72 59.46 59.57 59.76 60.37 60.37' 60.64 22 NNoonnbboorrrroowweedd rreesseerrvveess 37.77 45.94 56.63 57.94 58.43 57.94 58.38 59.18 58.01 57.38 57.79 57.55 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 40.38 46.44 56.93 58.43 58.82 58.43 58.75 59.38 59.49 60.00 59.89 60.11 44 RReeqquuiirreedd rreesseerrvveess 40.11 46.20 56.09 57.69 58.13 57.69 58.16 58.44 58.83 59.51 59.32r 59.76 55 MMoonneettaarryy bbaassee55 200.45 218.26 240.80 257.93 256.94 257.93 260.72 262.02 263.32 265.81 266.92r 268.32 Not seasonally adjusted 6 Total reserves3 41.84 48.27 58.70 60.02 59.14 60.02 61.20 58.66 58.85 60.95 59.45 60.68 7 Nonborrowed reserves 38.65 46.95 57.87 59.25 58.51 59.25 60.12 58.27 57.10 57.95 56.88 57.60 8 Nonborrowed reserves plus extended credit4 41.26 47.45 58.18 59.73 58.91 59.73 60.49 58.47 58.58 60.58 58.98 60.15 9 Required reserves 40.99 47.21 57.33 58.99 58.21 58.99 59.90 57.53 57.92 60.09 58.41r 59.80 10 Monetary base 203.39 221.49 244.55 262.05 257.65 262.05 262.01 259.01 260.77 265.01 265.73' 269.46 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS6 11 Total reserves3 40.70 48.14 59.56 62.12 61.20 62.12 62.64 60.05 60.08 62.06 60.68 61.99 12 Nonborrowed reserves 37.51 46.82 58.73 61.35 60.58 61.35 61.56 59.65 58.32 59.07 58.10 58.91 13 Nonborrowed reserves plus extended credit4 40.09 47.41 59.04 61.86 60.79 61.86 62.12 59.82 59.58 61.89 60.08 61.47 14 Required reserves 39.84 47.08 58.19 61.09 60.28 61.09 61.34 58.91 59.15 61.21 59.64r 61.11 15 Monetary base 204.18 223.53 247.71 266.16 261.67 266.16 265.79 262.60 263.98 268.13 268.90' 272.67 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 1988 IItteemm22 D 19 e 8 c 4 . D 19 e 8 c 5 . D 19 e 8 c 6 . D 19 e 8 c 7 . Mar. Apr.' May' June Seasonally adjusted 1 551.9 620.1 725.4 750.8 763.0' 770.0 770.0 776.2 ? 2,363.6 2,562.6 2,807.8 2,901.1 2,967.5 2,991.7 3,003.7 3,018.0 2,978.3 3,196.4 3,490.4 3,661.1 3,744.4' 3,767.0 3,780.8 3,801.8 4 3,519.4 3,825.9 4,133.8 4,323.9' 4,418.6' 4,460.7 4,489.3 n.a. 5 5,932.6 6,749.4 7,607.6 8,305.4' 8,468.7' 8,527.7 8,584.7 n.a. Ml components 6 Currency 156.1 167.7 180.4 196.5 200.9 202.5 203.6 204.9 7 Travelers checks4 5.2 5.9 6.5 7.1 7.3 7.3 7.4 7.3 8 Demand deposits 244.1 267.2 303.3 288.0 287.9 290.1 287.3 289.8 9 Other checkable deposits6 146.4 179.2 235.2 259.3 266^ 270.1 271.8 274.3 Nontransactions components 10 In M27 1,811.7 1,942.5 2,082.4 2,150.3 2,204.5' 2,221.7 2,233.7 2,241.8 11 In M3 only8 614.7 633.8 682.6 760.0 776.9' 775.3 777.1 783.8 Savings deposits9 1? Commercial Banks 122.6 124.8 155.5 178.2 118833..22 118844..22 118855..99 118888..00 13 Thrift institutions 162.9 176.6 215.2 236.0 236.6 238.6 239.3 241.3 Small denomination time deposits10 14 Commercial Banks 386.3 383.3 364.6 384.6 397.5 402.4 404.6 440066..88 15 Thrift institutions 497.0 496.2 488.6 528.5 556.0 562.4 567.3 568.7 Money market mutual funds 16 General purpose and broker-dealer 167.5 176.5 208.0 221.1 234.9 223366..11 223322..77 222299..88 17 Institution-only 62.7 64.5 84.4 89.6 97.4 91.9 90.0 86.3 Large denomination time deposits11 18 Commercial Banks 270.2 284.9 288.9 323.5 332266..33 332255..77 332288..99 333344..99 19 Thrift institutions 146.8 151.6 150.3 161.2 165.1 167.2 168.1 168.0 Debt components 70 Federal debt 1,365.3 1,584.3 1,804.5 1,954.7 22,,000066..66 22,,001188..55 22,,002233..11 n.a. 21 Nonfederal debt 4,567.3 5,165.1 5,803.2 6,350.7' 6,462.1' 6,509.2 6,561.6 n.a. Not seasonally adjusted 7? 564.5 633.5 740.6 765.9 752.1' 778.2 763.6 778.5 73 2,373.2 2,573.9 2,821.5 2,914.8 2,958.9 2,999.3 2,989.8 3,015.8 74 2,991.4 3,211.0 3,507.2 3,677.7 3,737.6' 3,771.8 3,768.3 3,797.1 75 3,532.7 3,841.4 4,151.9 4,341.9' 4.417.C 4,461.1 4,471.9 n.a. 26 5,927.1 6,740.6 7,593.3 8,289.3' 8,436.8' 8,498.0 8,555.0 n.a. Ml components 27 Currency 158.5 170.2 183.0 199.4 199.2 201.6 203.6 205.8 7,8 Travelers checks 4.9 5.5 6.0 6.5 6.9 6.9 7.1 7.6 29 Demand deposits 253.0 276.9 314.4 298.5 279.9 291.9 282.8 290.8 30 Other checkable deposits6 148.2 180.9 237.3 261.6 266.1' 277.8 270.1 274.3 31 NoUntrTan.s . a . c „ tions components 1,808.7 1,940.3 2,080.8 2,148.9 2,206.8' 2,221.1 2,226.2 2,237.3 32 M3 only8 618.2 637.1 685.7 762.9 778.7 772.5 778.5 781.3 Money market deposit accounts 33 Commercial Banks 267.4 332.8 379.6 358.2 336600..99'' 360.3 356.9 336600..00 34 Thrift institutions 149.4 180.8 192.9 167.0 163.8 163.0 162.6 162.4 Savings deposits9 35 Commercial Banks 121.5 123.7 154.2 176.7 118822..55 118855..11 118877..11 118899..66 36 Thrift institutions 161.5 174.8 212.9 233.3 236.1 239.5 241.3 244.1 Small denomination time deposits10 37 Commercial Banks 386.9 384.0 365.3 385.2 397.2 339999..55 401.4 440055..33 38 Thrift institutions 498.2 497.5 489.7 529.3 556.6 560.9 562.8 565.2 Money market mutual funds 39 General purpose and broker-dealer 167.5 176.5 208.0 221.1 234.9 236.1 232.7 222299..88 40 Institution-only 62.7 64.5 84.4 89.6 97.4 91.9 90.0 86.3 Large denomination time deposits11 41 Commercial Banks 2 270.9 228855..44 289.1 323.6 332288..55'' 332255..66 332299..66 333344..22 42 Thrift institutions 146.8 151.9 150.7 161.8 165.3 165.6 167.1 166.8 Debt components 43 Federal debt 1,364.7 1,583.7 1,803.9 1,954.1 1,993.2 2,001.6 2,005.2 n.a. 44 Nonfederal debt 4,562.4 5,156.9 5,789.4 6,335.1' 6,443.6' 6,496.4 6,549.8 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • September 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. 1987r 1988 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 1199885522 1199886622 1199887722 Nov. Dec. Jan/ Feb/ Mar. Apr. DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 156,091.6 188,345.8 217,115.9 219,386.1 203,290.6 213,270.8 221,057.3 218,986.7 213,971.5 2 Major New York City banks 70,585.8 91,397.3 104,496.3 103,693.6 92,640.1 98,733.8 104,568.3 101,161.0 100,695.1 3 Other banks 85,505.9 96,948.8 112,619.6 115,692.5 110,650.5 114,537.0 116,489.0 117,825.7 113,276.4 4 ATS-NOW accounts4 1,823.5 2,182.5 2,402.7 2,536.1 2,525.7 2,352.7 2,730.3 2,856.8 2,557.9 5 Savings deposits 384.9 403.5 526.5 570.8 556.0 534.9 596.0 640.7 543.7 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 500.3 556.5 612.1 619.0 590.4 602.5 628.2 628.8 600.2 7 Major New York City banks 2,196.9 2,498.2 2,670.6 2,620.2 2,608.1 2,600.3 2,844.8 2,811.0 2,700.6 8 Other banks 305.7 321.2 357.0 367.4 358.3 362.5 369.7 377.3 354.9 9 ATS-NOW accounts4 15.8 15.6 13.8 14.2 14.2 13.0 14.9 15.5 13.8 10 Savings deposits5 3.2 3.0 3.1 3.3 3.2 3.0 3.3 3.5 3.0 DEBITS TO Not seasonally adjusted Demand deposits 11 All insured banks 156,052.3 188,506.4 217,124.8 202,230.1 222,338.9 210,029.1 208,899.2 233,286.6 214,848.8 12 Major New York City banks 70,559.2 91,500.0 104,518.6 96,035.9 102,548.7 40.3 36.8 109,557.8 101,141.9 13 Other banks 85,493.1 97,006.6 112,606.1 106,194.2 119,790.3 112,189.0 110,792.7 123,728.8 113,706.9 14 ATS-NOW accounts4 1,826.4 2,184.6 2,404.8 2,375.8 2,645.3 2,565.2 2,468.6 2,825.0 2,745.3 15 MMDA 1,223.9 1,609.4 1,954.2 1,959.8 2,276.4 2,305.6 2,102.8 2,337.5 2,372.8 16 Savings deposits 385.3 404.1 526.8 519.9 568.9 552.5 526.3 616.5 603.2 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 499.9 556.7 612.3 565.6 615.0 578.7 610.5 684.3 601.8 18 Major New York City banks 2,196.3 2,499.1 2,674.9 2,467.8 2,661.4 2,430.3 2,664.6 3,005.7 2,706.2 19 Other banks 305.6 321.2 356.9 333.3 370.9 347.7 362.8 406.4 355.7 20 ATS-NOW accounts4 15.8 15.6 13.8 13.3 14.6 13.9 13.5 15.3 14.4 21 MMDA 4.0 4.5 5.3 5.5 6.4 6.5 5.9 6.5 6.6 22 Savings deposits 3.2 3.0 3.1 3.0 3.2 3.1 3.0 3.4 3.3 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 • September 1988 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1987 1988 CCaatteeggoorryy July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Seasonally adjusted 1 Total loans and securities2 2,181.3 2,199.0 2,214.7 2,227.6 2,232.1 2,230.6 2,242.4 2,259.8 2,274.8 2,297.7 2,322.5 2,343.9 2 U.S. government securities 322.9 328.5 331.3 331.7 331.1 333.2 334.6 334.9 338.9 343.0 345.9' 349.8 3 Other securities 194.3 193.7 193.7 194.2 196.2 196.0 193.9 195.6 197.5 198.2 197.6 198.5 4 Total loans and leases2 1,664.1 1,676.8 1,689.8 1,701.7 1,704.8 1,701.4 1,714.0 1,729.2 1,738.4 1,756.4 1,778.9 1,795.5 5 Commercial and industrial ..... 553.6 554.0 559.0 562.8 563.1 565.5 568.3 571.1 569.3 578.8 587.4 594.4 6 Bankers acceptances held ... 4.5 5.3 5.4 5.5 4.6 4.3 4.5 4.5 4.8 4.7 4.5 4.5 7 Other commercial and industrial 549.1 548.7 553.6 557.3 558.5 561.2 563.9 566.6 564.5 574.1 582.9 589.9 8 U.S. addressees4 540.8 540.6 545.7 549.4 551.0 553.1 554.9' 557.6 556.1 565.8 575.7r 583.0 9 Non-U.S. addressees 8.3 8.1 7.9 7.9 7.5 8.2 9.0 8.9 8.4 8.3 7.1 7.0 10 Real estate 549.6 556.8 561.7 569.4 576.2 582.3 587.5 593.0 598.2 604.4 612.6r 618.9 11 Individual 319.7 321.5 322.8 324.1 325.0 325.9 327.9 330.8 334.6 337.6 339. r 340.6 12 Security * 43.9 45.4 46.1 47.1 39.3 33.4 36.3 41.3 39.8 38.1 38.8 38.6 13 Nonbank financial institutions 32.5 31.5 31.4 31.7 31.9 31.9 32.1 32.7 32.1 31.2 31.8 31.4 14 Agricultural 29.8 29.7 29.6 29.6 29.3 29.2 29.3' 29.5 29.5 29.5 29.4 29.0 15 State and political subdivisions 55.6' 54.8' 54.7' 54.1 53.4 51.2 52.3 52.3 52.1 51.9 51.6 51.5 16 Foreign banks 9.0 9.1 9.2 9.6 8.8 8.2 8.2 7.8 8.1 8.5 8.2 8.2 17 Foreign official institutions 5.7 5.7 5.7 5.8 5.7 5.6 5.6 5.2 5.2 5.2 5.3 5.2 18 Lease financing receivables 23.9 24.0 24.1 24.3 24.5 24.8 24.8 24.7 24.8 25.0 25.3 25.8 19 All other loans 40.7 44.2' 45.4' 43. r 47.6 43.3 41.6 40.9 44.6 46.1 49.5r 51.8 Not seasonally adjusted 20 Total loans and securities2 2,172.8 2,188.8 2,211.6 2,222.4 2,231.3 2,247.0 2,255.0 2,264.5 2,275.0 2,298.8 2,319.1 2,340.0 21 U.S. government securities 322.1 328.3 331.3 329.3 331.0 333.1 336.1 340.0 340.8 342.6 344.3 346.3 22 Other securities 193.0 193.6 193.8 193.3 195.6 196.6 196.5 196.3 197.1 197.8 197.7' 198.0 23 Total loans and leases2 1,657.7 1,666.9 1,686.6 1,699.8 1,704.7 1,717.3 1,722.4 1,728.2 1,737.2 1,758.5 1,777.1 1,795.7 24 Commercial and industrial ..... 551.3 549.5 555.7 558.7 562.0 569.6 568.0 570.3 574.5 582.8 589.8 595.9 25 Bankers acceptances held ... 4.6 5.3 5.5 5.4 4.6 4.4 4.3 4.4 4.8 4.7 4.5 4.6 26 Other commercial and industrial 546.7 544.2 550.2 553.3 557.4 565.2 563.7 565.9 569.7 578.1 585.3 591.3 27 U.S. addressees4 538.2 536.0 542.1 545.3 549.3 557.1 555.5 557.4 561.5 570.0 577.9 584.2 28 Non-U.S. addressees 8.6 8.3 8.1 8.1 8.1 8.1 8.2 8.5 8.1 8.1 7.3 7.1 29 Real estate 549.7 556.8 562.4 570.0 576.8 583.2 587.8 592.3 597.4 603.4 612.0 618.6 30 Individual 318.4 321.5 324.3 325.7 326.7 330.2 331.3 330.2 331.5 334.5 336.3 338.5 31 Security 43.3 43.3 44.8 45.6 39.4 35.1 37.1 39.7 39.3 39.8 39.3 40.0 32 Nonbank financial institutions 32.3 31.4 31.8 31.7 32.3 33.2 32.4 31.6 31.1 31.1 31.5 31.5 33 Agricultural 30.5 30.6 30.7 30.4 29.6 28.9r 28.6 28.5 28.5 28.7 29.1 29.3 34 State and political subdivisions 54.7 54.1 53.8 53.2 52.3 51.2 54.1 53.5r 53.0 52.4 51.6 51.1 35 Foreign banks 9.0 8.9 9.5 9.8 8.8 8.6 8.4 8.0 8.0 8.1 7.9 8.1 36 Foreign official institutions 5.7 5.7 5.7 5.8 5.7 5.6 5.6 5.2 5.2 5.2 5.3 5.2 37 Lease financing receivables 23.9 23.9 24.0 23.9 24.2 24.8 25.0 24.9 25.0 25.2 25.4 26.0 38 All other loans 38.9 41.0 43.9 44.8 46.8 46.8 44.1 43.8 43.8 47.1 48^ 51.3 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total nondeposit funds 1 Seasonally adjusted2 160.4 166.8 177.3 176.3 173.8 177.4R NS.Y 176.7' 174.2' 181.5' 191.5' 190.7 2 Not seasonally adjusted 156.8 166.9 177.7 176.3 176.1 178.2 179.2R 179.2' 175.1' 180.7' 191.3' 187.0 Federal funds, RPs, and other borrowings from nonbanks 3 Seasonally adjusted 167.3 167.1 165.0 164.7 165.9 162.2 169.8 173.6 177.4 179.5 118811..66 118811..77 4 Not seasonally adjusted 163.6 167.2 165.4 164.8 168.3 163.1 170.1 176.1 178.2 178.7 181.4 178.1 5 Net balances due to foreign-related institutions, not seasonally adjusted -6.9 -.3 1122..33 1111..66 77..99 1155..22'' 99..11'' 33..11'' --33..11'' 22..00'' 99..88'' 88..99 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted -22.2 -17.7 -11.8 -14.7 -17.1 --1144..00RR -16.5' -2n0y.2 ' --2255..33'' --2222..22'' --1166..44'' --1166..00 7 Gross due from balances 66.4 64.5 63.8 67.7 70.4 69.5' 71.2' 76.6' 72.9' 69.6' 69.4 8 Gross due to balances 44.2 46.8 52.0 53.0 53.3 55.5 54.7 52.7 51.3 50.7 53.3' 53.4 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted3 15.4 17.4 24.1 26.3 24.9 29.2 25.6 23.3 22.1 24.2 26.2 25.0 in Gross due from balances 77.4 77.7 77.3 79.7 83.2 79.8 85.2 87.3 88.6 88.3 89.9' 93.6 ii Gross due to balances 92.8 95.0 101.4 106.0 108.2 109.0 110.8' 110.6 110.7 112.4 116.0 118.5 Security RP borrowings i? Seasonally adjusted® 103.0 105.2 107.4 107.6 107.0 106.5 108.9 107.7 108.2 112.0 114.9 117.7 13 Not seasonally adjusted ^ 99.4 105.3 107.8 107.6 109.3 107.4 109.3 110.3 109.1 111.2 114.7 114.1 U.S. Treasury demand balances 14 Seasonally adjusted 24.4 28.5 24.9 34.2 35.7 26.1 18.6 22.6 24.9 2211..88 2244..77 2222..00 15 Not seasonally adjusted 26.6 21.6 25.5 30.7 25.8 22.4 24.9 28.2 22.3 21.7 30.4 21.0 Time deposits, $100,000 or more8 16 Seasonally adjusted 372.5 372.3 373.0 380.5 387.0 389.2 389.1 394.4 396.1 394.1 339966..55 440000..77 17 Not seasonally adjusted 370.0 371.8 373.2 380.4 387.0 389.3 390.1 394.7 398.2 394.0 397.2 400.0 1. Commercial banks are those in the 50 states and the District of Columbia business. This includes borrowings from Federal Reserve Banks and from foreign with national or state charters plus agencies and branches of foreign banks. New banks, term federal funds, overdrawn due from bank balances, loan RPs, and York investment companies majority owned by foreign banks, and Edge Act 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 • September 1988 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series' Billions of dollars 1987 1988 AAccccoouunntt Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,348.8 2,374.8 2,402.4 2,389.9 2,430.5 2,416.5 2,424.1 2,444.6 2,462.9 2,469.0 2,509.0 2 Investment securities 501.1 501.7 503.8 508.0 514.4 516.0 515.4 518.3 520.3 522.5 519.8 3 U.S. government securities 313.7 313.8 316.0 317.3 321.4 323.7 323.6 324.6 328.1 330.0 327.1 4 Other 187.4 187.9 187.9 190.7 193.1 192.2 191.8 193.7 192.1 192.6 192.7 5 Trading account assets 19.5 19.5 19.6 20.3 16.9 18.2 21.9 20.3 19.6 20.3 22.3 6 Total loans 1,828.2 1,853.6 1,878.9 1,861.6 1,899.2 1,882.3 1,886.9 1,906.0 1,923.0 1,926.2 1,966.9 7 Interbank loans 160.8 157.4 172.9 162.0 172.1 160.9 162.8 161.0 161.6 154.0 166.7 8 Loans excluding interbank 1,667.5 1,696.2 1,706.1 1,699.7 1,727.2 1,721.4 1,724.1 1,745.0 1,761.5 1,772.1 1,800.2 9 Commercial and industrial 548.2 560.7 559.7 561.1 576.4 565.4 570.4 576.9 584.1 588.7 600.2 10 Real estate 558.2 564.1 571.7 577.4 586.3 589.3 592.7 600.0 605.9 613.9 621.3 11 Individual 322.1 325.3 326.7 326.9 332.4 330.8 330.4 332.7 335.9 336.3 339.2 12 All other 239.0 246.0 248.0 234.3 232.1 235.8 230.6 235.4 235.6 233.2 239.5 13 Total cash assets 210.7 223.8 223.5 215.2 232.5 209.7 203.3 207.9 210.8 197.0 218.3 14 Reserves with Federal Reserve Banks. 37.3 32.9 38.3 33.8 36.2 33.3 32.8 32.1 32.2 26.0 34.4 15 Cash in vault 24.7 24.5 25.0 24.0 28.5 25.8 25.1 24.8 25.4 25.4 26.5 16 Cash items in process of collection ... 65.9 81.6 79.0 76.1 79.9 70.7 66.8 74.1 76.4 71.6 77.2 17 Demand balances at U.S. depository institutions 30.8 32.7 32.3 32.9 36.6 31.3 30.0 31.6 30.6 29.5 31.9 18 Other cash assets 52.1 52.1 48.9 48.4 51.4 48.6 48.5 45.3 46.2 44.6 48.3 19 Other assets 184.5 193.6 186.3 187.5 184.0 177.7 178.1 189.0 185.2 182.0 189.3 20 Total assets/total liabilities and capital.... 2,744.0 2,792.2 2,812.2 2,792.6 2,847.1 2,803.9 2,805.5 2,841.5 2,859.0 2,848.0 2,916.6 21 Deposits 1,930.4 1,972.4 1,971.2 1,974.1 2,009.1 1,969.0 1,975.0 2,004.1 2,007.2 2,004.6 2,038.3 22 Transaction deposits 574.1 612.4 598.1 592.0 623.3 576.2 567.5 587.6 595.0 578.1 602.3 23 Savings deposits 537.9 535.3 531.7 531.1 528.0 531.7 535.6 539.7 536.0 542.0 544.5 24 Time deposits 818.4 824.7 841.4 851.0 857.9 861.1 871.8 876.8 876.2 884.4 891.6 25 Borrowings 426.4 416.3 435.7 420.1 426.2 446.1 444.2 446.3 456.3 448.7 478.8 26 Other liabilities 209.6 224.7 225.5 218.9 231.5 208.1 205.3 211.1 214.1 211.8 215.0 27 Residual (assets less liabilities) 177.6 178.8 179.8 179.5 180.4 180.7 181.0 180.0 181.4 182.9 184.4 MEMO 28 U.S. government securities (including trading account) 326.8 327.7 329.9 331.7 332.4 337.7 340.8 340.1 342.8 345.7 344.0 29 Other securities (including trading account) 193.8 193.5 193.5 196.6 198.9 196.5 196.5 198.5 197.1 197.2 198.1 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2,179.6 2,195.4 2,218.6 2,213.8 2,238.5 2,232.9 2,237.8 2,255.8 2,272.0 2,277.3 2,304.1 31 Investment securities 476.2 475.9 478.7 482.6 488.3 488.0 487.6 490.4 493.8 495.2 492.5 32 U.S. Treasury securities 303.5 302.9 305.7 306.4 311.0 312.1 312.2 313.1 316.8 317.7 315.2 33 Other 172.6 173.0 173.0 176.2 177.3 175.9 175.4 177.2 177.0 177.6 177.3 34 Trading account assets 19.5 19.5 19.6 20.3 16.9 18.2 21.9 20.3 19.6 20.3 22.3 35 Toted loans 1,684.0 1,700.0 1,720.3 1,711.0 1,733.3 1,726.6 1,728.3 1,745.1 1,758.6 1,761.8 1,789.4 36 Interbank loans 128.6 125.0 133.3 130.5 135.3 131.4 133.4 132.2 129.0 125.5 133.6 37 Loans excluding interbank 1,555.4 1,575.0 1,587.0 1,580.4 1,598.0 1,595.2 1,595.0 1,612.9 1,629.7 11,,663366..33 1,655.8 38 Commercial and industrial 464.4 470.2 470.6 472.0 479.4 472.7 475.6 480.7 487.2 448888..88 492.5 39 Real estate 548.4 554.0 561.9 567.3 575.0 577.9 580.3 587.3 593.0 600.5 607.8 40 Individual 321.8 325.0 326.4 326.6 332.1 330.5 330.1 332.4 335.6 336.0 338.9 41 All other 220.8 225.8 228.1 214.6 211.6 214.1 209.0 212.5 213.9 211.0 216.5 42 Total cash assets 192.7 204.8 207.8 199.3 214.9 192.1 184.4 191.7 194.3 180.8 199.4 43 Reserves with Federal Reserve Banks. 36.2 30.9 36.5 31.5 35.1 31.7 30.5 30.1 30.8 23.6 32.9 44 Cash in vault 24.6 24.4 24.9 24.0 28.4 25.7 25.1 24.7 25.4 25.4 26.4 45 Cash items in process of collection ... 65.4 81.0 78.4 75.7 79.5 70.2 66.3 73.6 75.9 71.1 76.6 46 Demand balances at U.S. depository institutions 29.2 30.8 30.6 31.4 34.7 29.7 28.4 30.0 29.0 27.8 30.1 47 Other cash assets 37.2 37.7 37.3 36.7 37.3 34.8 34.0 33.4 33.3 32.9 33.4 48 Other assets 119.9 134.2 130.0 123.7 127.2 118.9 121.4 126.8 125.1 121.7 129.6 49 Total assets/liabilities and capital 2,492.2 2,534.5 2,556.4 2,536.8 2,580.7 2,543.9 2,543.6 2,574.3 2,591.5 2,579.7 2,633.2 50 Deposits 1,868.8 1,910.3 1,909.1 1,912.4 1,944.6 1,906.9 1,912.2 1,940.1 1,943.7 1,940.6 1,972.7 51 Transaction deposits 566.0 603.9 589.5 583.7 614.9 567.9 559.6 579.2 586.4 569.8 593.6 52 Savings deposits 535.7 533.2 529.5 528.8 525.7 529.4 533.2 537.3 533.6 539.6 541.7 53 Time deposits 767.1 773.3 790.1 799.9 804.1 809.6 819.4 823.6 823.7 831.2 837.4 54 Borrowings 333.0 324.7 345.7 323.2 331.9 347.0 344.8 343.4 351.0 344.2 362.6 55 Other liabilities 116.0 123.8 125.0 124.8 127.0 112.5 108.8 114.0 118.5 115.2 116.7 56 Residual (assets less liabilities) 174.4 175.6 176.6 176.3 177.2 177.5 177.8 176.8 178.2 179.7 181.2 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 Account May 4 May 11 May 18 May 25 June 1 June 8 June 15 June 22 June 29 1 Cash and balances due from depository institutions 109,022 103,976 101,901 91,701 133,443 103,538 123,097 100,236 2 Total loans, leases, and securities, net 1,130,200 1,112,048 1,116,620 1,113,781 1,139,009 1,123,319 1,144,384 1,124,669 3 U.S. Treasury and government agency 130,547' 130,852' 131,578' 132,517' 132,000 133,973 134,747 131,584 4 Trading account 15,299 16,042 16,321 15,668 16,311 18,859 21,246 18.016 5 Investment account 115,248' 114,810' 115,257' 116,849' 115,690 115,114 113,502 113,567 6 Mortgage-backed securities 41,541' 41,625' 41,668' 42,209' 41,833 41,866 41,329 41,904 All other maturing in 7 One year or less 17,764' 17,023' 16,928 17,422' 17,136 16,588 16,426 16,176 8 Over one through five years 46,784' 47,041' 47,434' 47,676' 47.183 47,131 46,186 45,988 9 Over five years 9,159' 9,121' 9,226' 9,543' 9,538 9,530 9,561 9,499 10 Other securities 73,434' 73,290' 72,978' 72,946' 73,772 73,320 73,415 72,857 11 Trading account 2,015 1,910 1,587 1,634' 1,719 1,654 1,929 1,690 12 Investment account 71,419' 71,381' 71,390' 71,311' 72,053 71,666 71,486 71,166 13 States and political subdivisions, by maturity . 48,851 48,830 48,782 48,739' 48,531 48,275 48,212 48,138 14 One year or less 5,915 5,924 5,905 5,867' 5,661 5,633 5,590 5,541 15 Over one year 42,936 42,906 42,877 42,872' 42,870 42,642 42,621 42,598 16 Other bonds, corporate stocks, and securities . 22,568' 22,551' 22,608' 22,572' 23,522 23,392 23,274 23,028 17 Other trading account assets 3,488 3,290 2,812 2,966 3,262 2,972 3,418 3,257 2 2 1 1 0 1 8 9 Fe T T T d o o o e r o n c a t o l o h m n f e u b m r a n s e n d k r s c s i b a o r l l o d b k 3 a e n rs k s a nd dealers in securities ... 4 8 2 1 8 2 3 1 , , , , 0 6 2 3 2 8 9 7 5 5 0 0 6 3 1 6 7 9 9 , , , , 0 5 3 1 4 5 3 4 1 8 9 3 4 6 1 2 8 9 8 , , , , 4 3 8 9 4 9 3 9 5 0 4 9 6 4 1 8 1 9 7 , , , , 1 3 3 4 0 8 0 1 5 6 9 0 5 2 8 1 2 1 5 1 , , , , 6 6 3 0 0 9 4 4 8 5 4 6 4 7 1 1 2 1 0 8 , , , , 9 9 2 6 4 0 9 6 3 4 2 9 5 2 8 1 2 3 6 0 , , , , 4 7 8 6 5 3 3 5 6 2 9 1 4 7 1 2 8 0 9 , , , , 1 9 7 6 8 7 7 1 4 6 0 0 22 Other loans and leases, gross 881.412 879,984 880,879 878,705 886,011 882,488 887,250 887,516 23 Other loans, gross 860,133 858,699 859,624 857,252 864,508 860,702 865,401 865,604 24 Commercial and industrial 301,911' 300,851' 300,003' 298,743' 299,272 299,934 300,612 300,399 25 Bankers acceptances and commercial paper 2,299' 2,121 2,106' 2,088 2,232 2,206 2,083 2,111 26 All other 299,612' 298,729' 297,897' 296,655' 297,040 297,729 298,529 298.288 27 U.S. addressees 296,952 296,123 295,354' 294,106' 294,429 295,109 295,964 295,736 28 Non-U.S. addressees 2,661' 2,606' 2,542' 2,548' 2,611 2,619 2,565 2,552 29 Real estate loans 274,266 275,084 276,130 277,244 277,447 277,868 278,928 279,800 30 Revolving, home equity 19,046 19,160 19,272 19,365 19,448 19,566 19,686 19,838 31 All other 255,220 255,925 256,858 257,879 257,998 258,302 259,242 259,962 32 To individuals for personal expenditures 162,232 162,166 161,785' 161,957' 162,489 162,560 162,548 162,464 33 To depository and financial institutions 49,552 49,500 49,246 48,932 50,402 49,677 49,181 49,832 34 Commercial banks in the United States 23,060 22,990 23,297 22,811 23,164 23,229 22,640 23.303 35 Banks in foreign countries 3,876 3,975 3,600 3,771 4,055 3,829 4,071 4,198 36 Nonbank depository and other financial institutions .. 22,616 22,534 22,350 22,350 23.184 22,619 22,469 22,330 37 For purchasing and carrying securities 12,218 11,879 13,198 11,704 13,737 11,568 13,772 12,856 38 To finance agricultural production 5,575 5.620 5,634 5,666 5,715 5,745 5,609 5,672 39 To states and political subdivisions 31,303 31,128 31,112 30,993 31,006 30,897 30,837 30,793 40 To foreign governments and official institutions 2,148 2,158' 2,136' 2,051' 2,235 1,950 2,080 1,978 41 All other 20,928 20,314 20,379 19,961 22,206 20,503 21,833 21,810 42 Lease financing receivables 21,279 21,285 21,256 21,453 21,503 21,786 21,850 21,912 43 LESS: Unearned income 4,834 4,856 4,909 4,919 4,883 4,896 4,903 4,939 4 4 4 5 4 6 O Al t l h e o r t h l L e o r o a a n a n s s s a a e n n t d s d l l e e a a s se e s r , e n s e e t r ve 8 1 4 3 2 0 6 8 , , . 0 5 4 4 3 1 6 2 3 8 1 3 3 2 8 6 7 , , , 5 5 6 7 5 9 5 3 3 8 1 3 3 2 9 6 8 , , , 4 5 2 1 8 5 8 7 2 8 1 3 3 2 7 6 2 , , , 2 5 3 4 3 2 7 9 6 8 1 4 3 2 4 6 6 , , , 6 5 4 2 0 8 8 0 9 8 1 4 3 2 1 6 2 , , , 1 4 4 4 4 8 9 2 0 8 1 4 3 2 5 6 7 , , , 9 3 2 6 8 5 4 4 2 8 1 4 3 2 6 6 3 , , , 2 3 0 0 7 4 1 6 2 47 Total assets 1,367,634 1,343,717 1,346,808 1,327,807 1,398,940 1,349,337 1,394,733 1,347,947 48 Demand deposits 238,177 222,603 224,955 215,417 268,245 226,593 263,607 222,352 49 Individuals, partnerships, and corporations 183,837 176,612 176,441 170,851 205,929 179,592 198,136 175,839 States and political subdivisions 7,836 5.621 5,889 5,629 7,331 5,336 7,023 6,463 U.S. government 5,277 2,853 4,142 2,121 1,536 3,153 15,723 2,785 Depository institutions in the United States 24,983 20,988 22,970 21,035 32,132 21,764 26,086 20,939 Banks in foreign countries 6,425 6,813 6,036 5,998 7,719 6,283 6,225 6,988 Foreign governments and official institutions 842 710 854 623 892 732 777 687 Certified and officers' checks 8,976 9,006 8,624 9,159 12,705 9,733 9,635 8,650 56 Transaction balances other than demand deposits 72,688 71,172 71,047 70,279 73,306 73,295 73,605 71,019 57 Nontransaction balances 592,3% 592,832 594,807 595,070 596,663 598,320 599,690 601.289 58 Individuals, partnerships, and corporations 552,584' 552,432' 553,904' 554,076' 555,870 557,379 558,814 560,659 59 States and political subdivisions 29,021' 29,728' 30,197' 30,377' 30,191 30,383 30,374 30,046 60 U.S. government 962 960 1,050 1,059 1,064 1,052 1,059 1,070 61 Depository institutions in the United States 9,032 8,940 8,923 8,842 8,824 8,793 8,681 8,726 62 Foreign governments, official institutions, and banks ... 796 772 732 716 713 714 762 789 63 Liabilities for borrowed money 295,046 286,616 283,924 274,337 287,721 277,693 283,733 282,480 64 Borrowings from Federal Reserve Banks 1,825 1,550 2,502 2,400 2,550 2,900 3,853 1,800 65 Treasury tax-and-loan notes 25,331 26,124 20,105 17,846 13,599 3,066 3,061 26,044 66 All other liabilities for borrowed money5 267,890 258,942 261,317 254,091 271,572 271,727 276,818 254,636 67 Other liabilities and subordinated notes and debentures ... 82,484 83,109 84,773 85,751 84,911 84,632 85,712 82,502 68 Total liabilities 1,280,790 1,256,332 1,259,506 1,240,854 1,310,846 1,260,534 1,306,347 1,259,642 69 Residual (total assets minus total liabilities)6 86,844 87,385 87,303 86,953 88,094 88,803 88,386 88.304 70 T M o E t M al O l oans and leases (gross) and investments adjusted' 7 .. 1,100,481 1,092,927 1,092,340 1,091,042 1,104,620 1,098,485 1,109,298 1,100,497 71 Total loans and leases (gross) adjusted 893,012 885,495 884,972 882,613 895,586 888,219 897,717 892,799 72 Time deposits in amounts of $100,000 or more 181,478 181,834 182,076 182,315 180,493 182,329 182,662 184,669 73 U.S. Treasury securities maturing in one year or less 17,081' 17,038' 16,082' 17,168' 16,510 17,143 16,477 15,534 74 Loans sold outright to affiliates—total8 1,494 1,502 1,525 1,534 1,474 1,468 1,403 1,441 75 Commercial and industrial 1,026 1,034 1,064 1,088 1,027 1,018 953 989 76 Other 468 468 460 447 447 449 450 452 77 Nontransaction savings deposits (including MMDAs) 250,664 250,551 252,228 252,015 255,212 254,595 255,227 254,349 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 Financial Statistics • September 1988 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1988 AAccccoouunntt May 4 May 11 May 18 May 25 June 1 June 8 June 15 June 22 June 29 1 Cash balances due from depository institutions 25,427 23,881 21,175 18,552 35,082 25,185 33,809 21,791 27,325 2 Total loans, leases and securities, net2 225,498 215,113 215,645 214,427 226,149 215,179 228,243 218,686 218,753 Securities 3 U.S. Treasury and government agency 0 0 0 0 0 0 0 0 0 4 Trading account 0 0 0 0 0 0 0 0 0 5 Investment account 15,422r 14,951' 15,404 15,161 14,856 14,882 14,818 14,747 14,702 6 Mortgage-backed securities 5,725r 5,722' 5,819 5,521 55,,552200 5,513 5,512 55,,445533 55,,443311 All other maturing in V One year or less 2,653r 2,218' 2,708 2,742 2,414 2,385 2,325 2,315 2,311 8 Over one through five years 4,641 4,684 4,719 4,727 4,750 4,809 4,839 4,838 4,811 9 Over five years 2,403' 2,326' 2,158 2,172 2,171 2,175 2,141 2,141 2,149 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 16,702' 16,646' 16,633 16,580 16,801 16,802 16,798 16,679 16,444 13 States and political subdivisions, by maturity 12,908 12,951 12,941 12,942 12,950 12,949 12,953 12,937 12,866 14 One year or less 1,009 1,010 1,003 996 1,002 996 986 979 866 15 Over one year 11,899 11,941 11,938 11,946 11,947 11,953 11,967 11,958 12,000 16 Other bonds, corporate stocks, and securities 3,794' 3,695' 3,692 3,638 3,852 3,853 3,846 3,742 3,578 17 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold 38,186 29,305 29,349 29,544 38,139 30,357 39,542 30,766 32,545 19 To commercial banks 15,476 11,410 12,101 13,902 16,984 12,099 18,374 13,951 16,573 20 To nonbank brokers and dealers in securities 14,538 11,253 11,493 8,989 13,026 10,411 13,467 10,485 9,730 21 To others 8,173 6,642 5,754 6,652 8,129 7,846 7,701 6,330 6,242 22 Other loans and leases, gross 170,413 169,490 169,569 168,466 171,689 168,464 172,414 171,832 170,391 23 Other loans, gross 165,478 164,547 164,632 163,505 166,720 163,238 167,159 166,557 165,110 24 Commercial and industrial 58,943 58,228 57,270 57,214 57,161 57,189 58,122 57,548 57,389 25 Bankers acceptances and commercial paper 531 474 472 463 487 454 431 422 446 26 All other 58,412 57,754 56,798 56,752 56,674 56,735 57,691 57,126 56,943 27 U.S. addressees 57,968 57,313 56,381 56,340 56,204 56,302 57,284 56,730 56,515 28 Non-U.S. addressees 445 441 417 412 470 433 407 3% 428 29 Real estate loans 46,424 46,339 46,592 46,634 46,666 46,767 46,670 46,%2 47,041 30 Revolving, home equity 2,888 2,899 2,910 2,927 2,937 2,950 2,966 2,980 2,995 31 All other 43,536 43,440 43,682 43,707 43,728 43,818 43,703 43,982 44,046 32 To individuals for personal expenditures 21,338 21,372 21,397 21,454 21,529 21,523 21,491 21,302 20,928 33 To depository and financial institutions 20,824 21,168 20,854 20,700 21,247 20,670 21,010 22,027 20,730 34 Commercial banks in the United States 12,010 12,358 12,336 11,972 11,993 12,210 12,027 12,8% 11,944 35 Banks in foreign countries 2,302 2,464 2,099 2,242 2,512 2,222 2,544 2,763 2,247 36 Nonbank depository and other financial institutions 6,512 6,346 6,419 6,486 6,742 6,238 6,439 6,368 6,540 37 For purchasing and carrying securities 4,351 4,116 5,471 4,318 5,893 3,935 5,717 4,556 5,480 38 To finance agricultural production 271 281 278 294 289 291 302 298 295 39 To states and political subdivisions 6,981 6,918 6,909 6,876 6,904 6,952 6,886 6,866 6,836 40 To foreign governments and official institutions 623 625 620 548 733 481 656 575 607 41 All other 5,723 5,498 5,240 5,467 6,297 5,429 6,306 6,422 5,804 42 Lease financing receivables 4,934 4,943 4,937 4,960 4,969 5,226 5,255 5,275 5,281 43 LESS: Unearned income 1,490 1,507 1,527 1,542 1,520 1,532 1,537 1,546 1,564 44 Loan and lease reserve 13,737 13,772 13,783 13,782 13,817 13,794 13,793 13,791 13,765 45 Other loans and leases, net6 155,186 154,211 154,259 153,142 156,352 153,137 157,085 156,494 155,062 46 All other assets7 57,960 58,133 60,842 57,150 60,885 58,708 61,415 56,621 59,094 47 Total assets 308,884 297,128 297,662 290,129 322,116 299,072 323,466 297,099 305,172 Deposits 48 Demand deposits 58,093 52,354 54,110 52,170 72,300 55,003 70,948 54,348 59,105 49 Individuals, partnerships, and corporations 40,057 36,359 37,350 36,355 47,495 37,919 47,320 37,910 40,222 50 States and political subdivisions 931 581 827 701 1,109 579 1,226 631 775 51 U.S. government 1,014 565 823 394 207 646 4,624 483 560 52 Depository institutions in the United States 6,484 4,764 6,200 5,348 10,277 5,520 8,026 5,439 6,078 53 Banks in foreign countries 5,190 5,503 4,802 4,784 6,448 5,057 5,049 5,761 5,934 54 Foreign governments and official institutions 698 566 694 461 753 584 625 505 858 55 Certified and officers' checks 3,720 4,017 3,413 44,,112288 66,,001111 44,,669977 44,,007788 33,,661188 44,,667799 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,716 8,566 8,618 8,561 8,873 8,812 8,952 8,6% 8,644 57 Nontransaction balances 104,819 104,556 105,379 105,882 106,195 105,232 105,894 106,290 105,347 58 Individuals, partnerships, and corporations 96,784 96,401 %,884 97,088 97,532 %,490 %,922 97,125 %,600 59 States and political subdivisions 5,997 6,228 6,537 6,765 6,667 6,702 6,851 7,001 6,657 60 U.S. government 26 31 35 38 41 30 33 42 42 61 Depository institutions in the United States 1,744 1,629 1,661 1,729 1,695 1,751 1,816 1,817 1,740 62 Foreign governments, official institutions, and banks 267 266 262 262 261 258 272 303 307 63 Liabilities for borrowed money 80,426 75,640 73,162 66,224 76,690 72,151 78,023 72,718 73,850 64 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 725 0 0 65 Treasury tax-and-loan notes 6,950 7,559 6,028 5,384 4,098 677 609 7,526 6,879 66 All other liabilities for borrowed money8 73,477 68,081 67,134 60,840 72,592 71,474 76,689 65,192 66,971 67 Other liabilities and subordinated notes and debentures 32,047 30,955 31,396 32,516 32,541 31,988 33,992 29,545 32,797 68 Total liabilities 284,102 272,071 272,665 265,354 296,600 273,186 297,810 271,5% 279,743 69 Residual (total assets minus total liabilities)9 24,783 25,057 24,997 24,775 25,516 25,886 25,656 25,502 25,430 MEMO 70 Total loans and leases (gross) and investments adjusted2'10 213,238 206,624 206,517 203,876 212,508 206,1% 213,172 207,178 205,565 71 Total loans and leases (gross) adjusted 181,113 175,027 174,480 172,135 180,851 174,512 181,555 175,752 174,419 72 Time deposits in amounts of $100,000 or more 37,8% 37,586 37,834 38,170 37,346 37,334 37,350 37,767 37,031 73 U.S. Treasury securities maturing in one year or less 3,852 3,998 3,579 3,982 3,620 4,262 3,700 3,158 3,302 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 FRA5.S IEncRlu des securities purchased under agreements to resell. cial banks. 6. Includes allocated transfer risk reserve. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks All 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets and Liabilities Millions of dollars, Wednesday figures 1988 Account May 4 May 11 May 18 May 25 June 1 June 8 June 15 June 22 June 29 1 Cash and due from depository institutions .. 10,110 11,916 10,064 9,968 11,174 10,467 11,571 10,705 11,604 2 Total loans and securities 104,293 104,249 105,090 104,381 105,741 105,264 108,728 107,658 111,043 3 U.S. Treasury and government agency securities 8,166 8,322 7,878 8,286 7,780 7,892 8,352 8,234 8,102 4 Other securities. 7,621 7,592 7,457 7,535 7,605 7,605 7,609 7,609 7,595 5 Federal funds sold2 8,869 9,036 10,340 8,397 8,469 7,610 10,842 7,672 9,764 6 To commercial banks in the United States 5,820 6,147 7,416 5,900 5,546 5,137 7,645 4,857 6,827 7 To others 3,050 2,889 2,925 2,497 2,923 2,473 3,197 2,815 2,937 8 Other loans, gross 79,637 79,298 79,414 80,163 81,886 82,157 81,926 84,144 85,583 9 Commercial and industrial 53,061 53,239 52,810 53,674 55,094 55,245 54,911 56,536 57,718 10 Bankers acceptances and commercial paper 1,466 1,587 1,538 1,491 1,678 1,641 1,604 1,707 1,574 11 All other 51,595 51,652 51,272 52,183 53,415 53,604 53,306 54,829 56,144 12 U.S. addressees 49,541 49,654 49,207 50,061 51,398 51,590 51,317 52,794 54,092 13 Non-U.S. addressees 2,054 1,998 2,065 2,121 2,017 2,014 1,990 2,034 2,052 14 To financial institutions 14,678 14,398 14,858 14,680 15,052 15,161 14,834 15,244 15,2% 15 Commercial banks in the United States. 10,816 10,272 10,562 10,636 10,417 10,855 10,489 10,923 11,334 16 Banks in foreign countries 9% 1,064 984 1,060 1,146 1,180 1,037 1,127 918 17 Nonbank financial institutions 2,865 3,063 3,312 2,985 3,489 3,126 3,308 3,194 3,044 18 To foreign governments and official institutions 563 574 571 562 5% 585 586 558 562 19 For purchasing and carrying securities ... 1,508 1,213 1,301 1,366 1,382 1,433 1,622 1,811 2,100 20 All other 9,826 9,874 9,873 9,880 9,763 9,732 9,972 9,994 9,907 21 Other assets (claims on nonrelated parties) . 31,155 30,936 31,402 31,289 31,366 31,231 31,418 31,382 32,335 22 Net due from related institutions 15,921 15,278 15,420 15,074 15,942 16,704 17,879 15,546 15,269 23 Total assets 161,479 162,381 161,977 160,712 164,223 163,666 169,597 165,291 170,251 24 Deposits or credit balances due to other than directly related institutions 41,847 41,831 41,725 42,262 42,217 42,566 42,858 42,906 43,122 25 Transaction accounts and credit balances3 3,344 3,203 3,121 3,320 3,758 3,616 3,827 3,852 3,680 26 Individuals, partnerships, and corporations 2,111 1,926 2,101 1,965 2,322 2,312 2,448 2,261 2,134 27 Other 1,233 1,277 1,019 1,355 1,435 1,304 1,379 1,591 1,546 28 Nontransaction accounts 38,503 38,628 38,604 38,942 38,459 38,950 39,031 39,054 39,442 29 Individuals, partnerships, and corporations 31,257 31,387 31,420 31,743 31,187 31,833 31,924 31,715 32,268 30 Other 7,246 7,241 7,184 7,199 7,272 7,116 7,107 7,339 7,174 31 Borrowings from other than directly related institutions 65,806 64,077 62,315 62,8% 66,542 65,%5 70,988 66,816 70,2% 32 Federal funds purchased 33,087 30,681 30,454 31,201 32,883 32,712 37,834 31,781 32,614 33 From commercial banks in the United States 15,982 14,634 16,130 16,041 16,328 16,788 20,807 15,561 16,053 34 From others 17,105 16,048 14,324 15,160 16,556 15,924 17,027 16,220 16,562 35 Other liabilities for borrowed money 32,719 33,3% 31,861 31,695 33,659 33,253 33,154 35,035 37,682 36 To commercial banks in the United States 24,462' 24,957' 23,458' 23,918' 25,089 24,184 23,364 25,236 26,581 37 To others 8,257r 8,438' 8,403' 7,777' 8,570 9,069 9,791 9,799 11,100 38 Other liabilities to nonrelated parties 32,577 32,712 32,630 32,861 32,676 32,926 33,104 32,%9 33,787 39 Net due to related institutions 21,249 23,760 25,307 22,693 22,787 22,209 22,647 22,600 23,046 40 Total liabilities 161,479 162,381 161,977 160,712 164,223 163,666 169,597 165,291 170,251 MEMO 41 Total loans (gross) and securities adjusted6 . 87,657 87,830 87,112 87,845 89,778 89,272 90,594 91,879 92,882 42 Total loans (gross) adjusted 71,870 71,916 71,776 72,024 74,393 73,775 74,634 76,036 77,185 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 • September 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 1988 11998822 11998833 11998844 DDeecc.. DDeecc.. DDeecc.. Dec. Mar. June Sept. Dec/ Mar. 1 All holders—Individuals, partnerships, and corporations 291.8 293.5 302.7 321.0 363.6 335.9 340.2 339.0 343.5 328.6 2 Financial business 35.4 32.8 31.7 32.3 41.4 35.9 36.6 36.5 36.3 33.9 3 Nonfinancial business 150.5 161.1 166.3 178.5 202.0 183.0 187.2 188.2 191.9 184.1 4 Consumer 85.9 78.5 81.5 85.5 91.1 88.9 90.1 88.7 90.0 86.9 5 Foreign 3.0 3.3 3.6 3.5 3.3 2.9 3.2 3.2 3.4 3.5 6 Other 17.0 17.8 19.7 21.2 25.8 25.2 23.1 22.4 21.9 20.3 Weekly reporting banks 1986 1987 1988 11998822 11998833 11998844 11998855 DDeecc.. DDeecc.. DDeecc..22 DDeecc..33''44 Dec. Mar. June Sept. Dec/ Mar.5 7 All holders—Individuals, partnerships, and corporations 144.2 146.2 157.1 168.6 195.1 178.1 179.3 179.1 183.8 181.8 8 Financial business 26.7 24.2 25.3 25.9 32.5 28.7 29.3 29.3 28.6 27.0 9 Nonfinancial business 74.3 79.8 87.1 94.5 106.4 94.4 94.8 96.0 100.0 98.2 10 Consumer 31.9 29.7 30.5 33.2 37.5 36.8 37.5 37.2 39.1 41.7 11 Foreign 2.9 3.1 3.4 3.1 3.3 2.8 3.1 3.1 3.3 3.4 12 Other 8.4 9.3 10.9 12.0 15.4 15.5 14.6 13.5 12.7 11.4 1. Figures include cash items in process of collection. Estimates of gross 4. Historical data back to March 1985 have been revised to account for deposits are based on reports supplied by a sample of commercial banks. Types corrections of bank reporting errors. Historical data before March 1985 have not of depositors in each category are described in the June 1971 BULLETIN, p. 466. been revised, and may contain reporting errors. Data for all commercial banks for Figures may not add to totals because of rounding. March 1985 were revised as follows (in billions of dollars): all holders, -.3; 2. Beginning in March 1984, these data reflect a change in the panel of weekly financial business, -.8; nonfinancial business, -.4; consumer, .9; foreign, .1; reporting banks, and are not comparable to earlier data. Estimates in billions of other, -.1. Data for weekly reporting banks for March 1985 were revised as dollars for December 1983 based on the new weekly reporting panel are: financial follows (in billions of dollars): all holders, -.1; financial business, -.7; nonfinanbusiness, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other cial business, -.5; consumer, 1.1; foreign, .1; other, -.2. 9.5. 5. Beginning March 1988, these data reflect a change in the panel of weekly 3. Beginning March 1985, financial business deposits and, by implication, total reporting banks, and are not comparable to earlier data. Estimates in billions of gross demand deposits have been redefined to exclude demand deposits due to dollars for December 1987 based on the new weekly reporting panel are: financial thrift institutions. Historical data have not been revised. The estimated volume of business, 29.4; nonfinancial business, 105.1; consumer, 41.1; foreign, 3.4; other, such deposits for December 1984 is $5.0 billion at all insured commercial banks 13.1. and $3.0 billion at weekly reporting banks. 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 1983 1984 1985 1986 1987 IInnssttrruummeenntt Dec. Dec. Dec. Dec. Dec. Dec. Jan.1 Feb. Mar. Apr. May Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 187,658 237,586 298,779 329,991 357,129 357,129 380,339 388,893 391,305 406,484 414,312 Financial companies2 Dealer-placed paper 2 Total 44,455 56,485 78,443 101,072 101,958 101,958 120,930 125,914 128,680 133,946 137,838 3 Bank-related (not seasonally adjusted) 2,441 2,035 1,602 2,265 1,428 1,428 1,694 1,724 1,371 1,093 1,422 Directly placed paper4 4 Total 97,042 110,543 135,320 151,820 173,939 173,939 175,467 174,595 173,316 180,119 185,876 5 Bank-related (not seasonally adjusted) 35,566 42,105 44,778 40,860 43,173 43,173 45,425 43,987 43,681 45,703 47,719 6 Nonfinancial companies5 46,161 70,558 85,016 77,099 81,232 81,232 83,942 88,384 89,309 92,419 90,598 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 78,309 78,364 68,413 64,974 70,565 70,565 62,957r 62,419 63,454 64,112 63,332 Holder 8 Accepting banks 9,355 9,811 11,197 13,423 10,943 10,943 8,602' 9,629 10,243 10,295 9,322 9 Own bills 8,125 8,621 9,471 11,707 9,464 9,464 7,759' 8,561 8,825 8,929 8,498 10 Bills bought 1,230 1,191 1,726 1,716 1,479 1,479 843 1,067 1,417 1,366 825 Federal Reserve Banks 11 Own account 418 0 • 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 729 671 937 1,317 965 965 831 833 795 803 1,050 13 Others 67,807 67,881 56,279 50,234 58,658 58,658 53,524' 51,958 52,417 53,014 52,960 Basis 14 Imports into United States 15,649 17,845 15,147 14,670 16,483 16,483 14,468' 14,354 14,575 14,715 13,974 15 Exports from United States 16,880 16,305 13,204 12,960 15,227 15,227 14,054 13,891 13,899 14,746 14,590 16 All other 45,781 44,214 40,062 37,344 38,855 38,855 34,436' 34,173 34,980 34,652 34,768 1. Data reflect a break in series resulting from additions to the reporting 5. Includes public utilities and firms engaged primarily in such activities as panel and from the correction of a misclassification that had understated dealer- communications, construction, manufacturing, mining, wholesale and retail trade, placed financial and overstated nonfinancial outstandings. transportation, and services. 2. Institutions engaged primarily in activities such as, but not limited to, 6. Beginning January 1988, the number of respondents in the bankers accepcommercial savings, and mortgage banking; sales, personal, and mortgage fi- tance survey were reduced from 155 to 111 institutions—those with $100 million nancing; factoring, finance leasing, and other business lending; insurance under- or more in total acceptances. The new reporting group accounts for over 90 writing; and other investment activities. percent of total acceptances activity. 3. Includes all financial company paper sold by dealers in the open market. 4. As reported by financial companies that place their paper directly with investors. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Effective Date Rate Average rate 10.50 1987—Apr. 1 7.75 1985—Jan. 10.61 1986—Nov. 10.00 May 1 8.00 Feb. 10.50 Dec. 9.50 IS 8.25 Mar. 10.50 Sept. 4 8.75 Apr. 10.50 1987—Jan. 8 9 . . 5 0 0 0 Oct. r7> 9 9 . . 2 0 5 0 J M u a n y e 1 9 0 . . 7 3 8 1 F M e a b r . . 8.00 Nov. 5 8.75 July 9.50 Apr. 7.50 Aug. 9.50 May 1988—Feb. ? 8.50 Sept. 9.50 June May 11 9.00 Oct. 9.50 July July 14 9.50 Nov. 9.50 Aug. Dec. 9.50 Sept. Oct. 1986—Jan. 9.50 Nov. Feb. 9.50 Dec. Mar. 9.10 Apr. 8.83 1988—Jan. May 8.50 Feb. June 8.50 Mar. July 8.16 Apr. Aug. 7.90 May. Sept. 7.50 June. Oct.. 7.50 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 • September 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. 1988 1988, week ending IInnssttrruummeenntt 11998855 11998866 11998877 Mar. Apr. May June May 27 June 3 June 10 June 17 June 24 MONEY MARKET RATES 1 Federal funds1'2 8.10 6.80 6.66 6.58 6.87 7.09 7.51 7.14 7.41 7.37 7.43 7.54 2 Discount window borrowing1'2,3 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 paper ' 3 1-month 7.93 6.61 6.74 6.57 6.80 7.07 7.41 7.17 7.38 7.36 7.35 7.43 4 3-month 7.95 6.49 6.82 6.62 6.86 7.19 7.49 7.30 7.47 7.45 7.43 7.52 5 6-month 8.00 6.39 6.85 6.64 6.92 7.31 7.53 7.42 7.55 7.50 7.46 7.55 Finance paper, directly placed4' 6 1-month 7.90 6.57 6.61 6.44 6.71 6.96 7.23 7.00 6.98 7.21 7.17 7.33 7 3-month 7.77 6.38 6.54 6.38 6.67 7.00 7.25 7.11 7.30 7.26 7.15 7.24 8 6-month 7.74 6.31 6.37 6.23 6.51 6.75 7.01 6.86 6.% 6.95 6.97 7.05 Bankers acceptances5,6 9 3-month 7.91 6.38 6.75 6.51 6.79 7.12 7.38 7.22 7.34 7.33 7.33 7.43 10 6-month 7.95 6.28 6.78 6.55 6.86 7.25 7.41 7.35 7.42 7.35 7.34 7.46 Certificates of deposit, secondary market 11 1-month 7.96 6.61 6.75 6.56 6.80 7.04 7.41 7.15 7.38 7.35 7.35 7.44 12 3-month 8.04 6.51 6.87 6.63 6.92 7.24 7.51 7.34 7.50 7.45 7.44 7.55 13 6-month 8.24 6.50 7.01 6.78 7.14 7.52 7.69 7.63 7.73 7.64 7.61 7.74 14 Eurodollar deposits, 3-month 8.28 6.71 7.06 6.74 7.05 7.40 7.61 7.44 7.60 7.60 7.51 7.61 U.S. Treasury bills5 Secondary market9 15 3-month 7.47 5.97 5.78 5.70 5.91 6.26 6.46 6.35 6.45 6.43 6.36 6.50 16 6-month 7.65 6.02 6.03 5.91 6.21 6.56 6.71 6.76 6.79 6.67 6.61 6.78 17 1-year 7.81 6.07 6.33 6.28 6.56 6.90 6.99 7.07 7.08 6.97 6.91 7.02 Auction average 18 3-month 7.47 5.98 5.82 5.69 5.92 6.27 6.50 6.34 6.53 6.44 6.44 6.51 19 6-month 7.64 6.03 6.05 5.91 6.21 6.53 6.76 6.71 6.83 6.72 6.67 6.83 2200 77..8800 66..1188 66..3333 66..3300 66..5577 66..7744 77..0088 77..0088 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities 21 1-year 8.42 6.45 6.77 6.71 7.01 7.40 7.49 7.58 7.59 7.46 7.40 7.53 22 2-year 9.27 6.86 7.42 7.27 7.59 8.00 8.03 8.18 8.12 8.00 7.94 8.08 23 3-year 9.64 7.06 7.68 7.50 7.83 8.24 8.22 8.40 8.34 8.20 8.13 8.26 24 5-year 10.12 7.30 7.94 7.83 8.19 8.58 8.49 8.73 8.61 8.50 8.41 8.52 25 7-year 10.50 7.54 8.23 8.19 8.52 8.89 8.78 9.04 8.91 8.80 8.70 8.80 26 10-year 10.62 7.67 8.39 8.37 8.72 9.09 8.92 9.22 9.07 8.96 8.84 8.94 77 20-year 10.97 7.85 28 30-year 10.79 7.78 8.59 8.63 8.95 9.23 9.00 9.33 9.16 9.06 8.95 8.98 Composite13 29 Over 10 years (long-term) 10.75 8.14 8.64 8.61 8.91 9.24 9.04 9.36 9.17 9.07 8.99 9.05 State and local notes and bonds Moody's series 30 Aaa 8.60 6.95 7.14 7.20 7.33 7.56 7.51 7.65 7.63 7.50 7.45 7.45 31 Baa 9.58 7.76 8.17 7.80 7.82 7.90 7.86 7.90 7.90 7.90 7.80 7.72 32 Bond Buyer series" 9.11 7.32 7.64 7.74 7.81 7.90 7.78 7.96 7.87 7.78 7.73 7.77 Corporate bonds Seasoned issues 33 All industries 12.05 9.71 9.91 9.86 10.15 10.37 10.36 10.47 10.47 10.44 10.31 10.29 34 Aaa 11.37 9.02 9.38 9.39 9.67 9.90 9.86 10.02 10.00 9.93 9.80 9.79 35 Aa 11.82 9.47 9.68 9.59 9.86 10.10 10.13 10.19 10.25 10.22 10.08 10.08 36 A 12.28 9.95 9.99 9.89 10.17 10.41 10.42 10.54 10.53 10.51 10.38 10.37 37 Baa 12.72 10.39 10.58 10.57 10.90 11.04 11.00 11.07 11.11 11.09 11.08 10.97 38 A-rated, recently-offered utility bonds17 12.06 9.61 9.95 9.91 10.23 10.61 10.41 10.70 10.43 10.46 10.47 10.36 MEMO: Dividend/price ratio18 39 Preferred stocks 10.49 8.76 8.37 9.07 9.19 9.25 9.32 9.29 9.35 9.34 9.29 9.22 40 Common stocks 4.25 3.48 3.08 3.48 3.57 3.80 3.58 3.82 3.64 3.58 3.54 3.60 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 of ten 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 108.09 136.00 161.70 157.13 137.21 134.88 140.55 145.13 149.88 148.46 144.99 152.72 2 Industrial 123.79 155.85 195.31 189.86 163.42 162.19 168.47 173.44 181.57 181.01 176.02 184.92 3 Transportation 104.11 119.87 140.39 140.95 117.57 115.85 121.20 126.09 135.15 133.40 127.63 136.02 4 Utility 56.75 71.36 74.29 73.27 69.86 67.39 70.01 72.89 71.16 69.35 68.66 72.25 5 Finance 114.21 147.19 146.48 137.35 118.30 111.47 119.40 124.36 125.27 121.66 120.35 129.04 6 Standard & Poor's Corporation (1941-43 = 10)' 186.84 236.34 286.83 280.16 245.01 240.96 250.48 258.13 265.74 262.61 256.12 270.68 7 American Stock Exchange2 (Aug. 31, 1973 = 50) 229.10 264.38 316.61 306.34 249.42 248.52 267.29 276.54 295.78 300.43 296.30 306.13 Volume of trading (thousands of shares) 8 New York Stock Exchange 109,191 141,385 188,647 277,026 179,513 178,517 174,755 184,688 176,189 162,518 153,906 195,772 9 American Stock Exchange 8,355 11,846 13,832 18,173 11,268 13,422 9,853 9,961 12,442 10,706 8,931 11,348 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 28,390 36,840 31,990 38,250 34,180 31,990 31,320 31,990 32,660 33,270 33,070 32,300 Free credit balances at brokers4 11 Margin-account5 2,715 4,880 4,750 8,415 6,700 4,750 4,675 4,555 4,615 4,395 4,380 4,580 12 Cash-account 12,840 19,000 15,640 18,455 15,360 15,640 15,270 14,695 14,355 13,965 14,150 14,460 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 Nonfinancial Statistics • September 1988 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1987 1988 AAccccoouunntt 11998855 11998866 July Aug. Sept. Oct. Nov. Dec. Jan. Feb.' Mar. Apr. FSLIC-insured institutions 1 Assets 1,070,012 1,163,851 1,207,750 1,216,995 1,218,829 1,239,620' 1,246,719' 1,250,612' 1,254,585' 1,257,400 1,261,522' 1,274,294 2 Mortgages 690,717 697,451 701,282 704,815 708,433 713,483' 717,928' 721,595' 772222,,993355'' 772233,,887788 772255,,555566'' 772288,,882200 3 Mortgage-backed securities 115,525 158,193 182,067 186,101 191,829 196,865' 199,777' 201,557' 220011,,335533'' 119999,,667777 119977,,662222'' 220022,,224455 4 Contra-assets to mortgage assets' . 45,219 41,799 41,955 42,023 42,438 42,180' 41,396' 42,319' 41,21c 10,752 40,080' 38,152 5 Commercial loans 17,424 23,683 23,018 23,174 23,300 23,256' 23,294 23,171' 23,530' 23,318 24,138' 24,350 6 Consumer loans 45,809 51,622 55,186 56,079 56,118 56,548' 57,465 57,901' 58,338' 5588,,668855 5588,,440033'' 5599,,111155 7 Contra-assets to nonmortgage loans .... 2,521 3,041 3,150 3,242 3,442 3,373 3,430' 3,467' 3,579' 33,,552255 33,,558888'' 33,,449911 8 Cash and investment securities 143,538 164,844 170,788 170,071 164,034 173,114' 170,702' 169,712' 169,932' 174,075 176,433' 178,139 9 Other 104,739 112,898 120,514 122,020 120,995 121,908' 122,381' 122,462' 123,286' 124,073 124,047' 124,268 10 Liabilities and net worth 1,070,012 1,163,851 1,207,750 1,216,995 1,218,829 1,239,620' 1,246,719' 1,250,612' 1,254,585' 1,257,400 1,261,522' 1,274,294 11 Savings capital 843,932 890,664 902,617 904,441 908,907 916,843 922,340 932,612' 939,079' 946,790 958,468' 962,248 12 Borrowed money 157,666 196,929 226,093 232,332 234,941 246,110' 247,202' 249,645 245,697' 239,317 237,440' 244,724 13 FHLBB 84,390 100,025 102,979 104,191 106,250 109,736 111,283 116,363 114,053' 112,725 112,388' 113,029 14 Other 73,276 96,904 123,114 128,141 128,691 136,374' 135,919' 133,282 131,644' 126,592 125,052' 131,695 15 Other 21,756 23,975 26,599 28,170 24,599 27,094' 27,399' 21,937' 23,866' 25,818 22,484' 24,598 16 Net worth 46,657 52,282 52,441 52,052 50,382 49,574' 49,778' 46,418' 45,943' 45,505 43,13C 42,744 FSLIC-insured federal savings banks 17 Assets 131,868 210,562 268,779 272,134 272,834 276,560 279,221r 284,272' 284,303' 295,952 307,738' 18 Mortgages 72,355 113,638 154,839 156,048 156,705 158,507 161,014 164,013 163,918' 171,594 178,145' 19 Mortgage-backed securities 15,676 29,766 43,532 44,421 45,117 45,826' 46,171' 46,687 47,981' 20 Contra-assets to mortgage assets' 8,777 8,853 8,700 8,787 8,809 9,098' 8,909' 9,175 9,436' 21 Commercial loans 6,277 6,213 6,188 6,275 6,540 6,504' 6,496' 6,971 7,503' 22 Consumer loans 8,361 13,180 16,089 16,549 16,582 16,563 17,343 17,696 17,649 18,795 19,137' 23 Contra-assets to nonmortgage loans ... 704 702 690 712 678' 737 798' 24 Finance leases plus interest 569 577 552 550 566 591' 604 584 611' 25 Cash and investment .. 33,677 34,267 33,589 34,902 33,965 35,347' 34,645' 35,718 38,200' 26 Other 11,723 19,034 24,133 24,506 24,199 24,122 24,078 24,070' 24,428' 25,516 26,396' 27 Liabilities and net worth 131,868 210,562 268,779 272,134 272,834 276,560 279,221' 284,272' 284,303' 295,952 307,738' 28 Savings capital .. 103,462 157,872 193,890 194,853 195,213 197,298 199,114 203,196 204,329 214,169 224,168' 29 Borrowed money 19,323 37,329 53,652 55,660 56,549 57,551 58,277 60,716 59,206 59,704 61,532' 30 FHLBB 10,510 19,897 24,981 25,546 26,287 27,350 27,947 29,617 28,280 29,169 30,456 31 Other 8,813 17,432 28,671 30,114 30,262 30,201 30,330 31,099 30,926 30,535 31,076' 32 Other 2,732 4,263 6,138 6,450 5,631 6,293 6,350 5,324 5,838' 6,602 6,075' 33 Net worth 6,351 11,098 15,100 15,172 15,444 15,416 15,481 15,036' 14,930' 15,478 15,963' Savings banks 34 Assets 216,776 236,866 246,833 249,888 251,472 255,989 260,600 259,643 258,628 259,224 262,100 262,269 Loans 35 Mortgage 110,448 118,323 129,624 130,721 133,298 135,317 137,044 138,494 137,858 139,108 140,835 139,691 36 Other 30,876 35,167 35,591 36,793 36,134 36,471 37,189 33,871 35,095 3355,,775522 3366,,447766 3377,,447711 Securities 37 U.S. government 13,111 14,209 13,498 13,720 13,122 13,817 15,694 13,510 12,776 12,269 12,225 13,203 38 Mortgage-backed securities 19,481 25,836 28,252 28,913 29,655 30,202 31,144 32,772 32,241 32,423 3322,,227722 3311,,007722 39 State and local government 2,323 2,185 2,050 2,038 2,023 2,034 2,046 2,003 1,994 2,053 2,033 2,013 40 Corporate and other . 21,199 20,459 18,821 18,573 18,431 18,062 17,583 18,772 18,780 18,271 18,336 18,549 41 Cash 6,225 6,894 4,806 4,823 4,484 5,529 5,063 5,864 4,841 5,002 4,881 5,237 42 Other assets 13,113 13,793 14,191 14,307 14,325 14,557 14,837 14,357 15,043 14,346 15,042 15,033 43 Liabilities 216,776 236,866 246,833 249,888 251,472 255,989 260,600 259,643 258,628 259,224 262,100 262,269 44 Deposits 185,972 192,194 194,549 195,895 196,824 199,336 202,030 201,497 199,545 200,391 203,407 203,273 45 Regular4 181,921 186,345 188,783 190,335 191,376 193,777 196,724 196,037 194,322 195,336 198,273 197,801 46 Ordinary savings .. 33,018 37,717 41,928 41,767 41,773 42,045 42,493 41,959 41,047 41,234 41,867 41,741 47 Time 103,311 100,809 102,603 105,133 107,063 109,486 112,231 112,429 112,781 113,751 115,529 115,887 48 Other 4,051 5,849 5,766 5,560 5,448 5,559 5,306 5,460 5,223 5,055 5,134 5,472 49 Other liabilities 17,414 25,274 31,655 32,467 32,827 34,226 36,167 35,720 36,836 35,787 35,737 35,827 50 General reserve accounts 12,823 18,105 19,718 20,471 20,407 20,365 21,133 20,633 20,514 20,894 21,024 21,109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.37—Continued 1987 1988 AAccccoouunntt 11998855 11998866 July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar. Apr. Credit unions 51 Total assets/liabilities and capital 118,010 147,726 52 Federal 77,861 95,483 53 State 40,149 52,243 54 Loans outstanding. 73,513 86,137 55 Federal 47,933 55,304 56 State 25,580 30,833 57 Savings 105,963 134,327 58 Federal 70,926 87,954 59 State 35,037 46,373 Life insurance companies 60 Assets 825,901 937,551 1,005,592 1,017,018 1,026,919 1,021,148 1,024,460 1,033,170 1,042,350 1,052,645 Securities 61 Government .. 75,230 84,640 88,199 89,924 89,408 90,782 91,227 91,302 91,682 n.a. 62 United States6. 51,700 59,033 62,461 64,150 63,352 64,880 65,186 64,551 64,922 65,534 63 State and local 9,708 11,659 11,277 11,190 11,087 11,363 11,539 11,758 11,749 11,859 64 Foreign 13,822 13,948 14,461 14,584 14,969 14,539 14,502 14,993 15,011 n.a. 65 Business 423,712 492,807 555,423 551,701 558,787 549,426 548,767 553,486 563,019 571,070 n.a. n.a. 66 Bonds 346,216 401,943 448,146 442,604 451,453 455,678 459,537 461,942 469,207 476,448 67 Stocks 77,496 90,864 107,277 109,097 107,334 93,748 89,230 91,544 93,812 94,622 68 Mortgages 171,797 193,842 201,297 202,241 204,264 206,507 208,839 212,375 212,637 213,182 69 Real estate 28,822 31,615 32,699 32,992 33,048 33,235 33,538 34,016 34,178 34,503 70 Policy loans 54,369 54,055 53,338 53,330 53,422 53,413 53,334 53,313 53,265 52,720 71 Other assets 71,971 80,592 85,420 86,830 87,991 87,785 88,755 88,678 87,569 88,673 1. Contra-assets are credit-balance accounts that must be subtracted from the NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all institutions corresponding gross asset categories to yield net asset levels. Contra-assets to insured by the FSLIC and based on the FHLBB thrift Financial Report. mortgage loans, contracts, and pass-through securities include loans in process, FSLIC-insured federal savings banks: Estimates by the FHLBB for federal unearned discounts and deferred loan fees, valuation allowances for mortgages savings banks insured by the FSLIC and based on the FHLBB thrift Financial "held for sale," and specific reserves and other valuation allowances. Report. 2. Contra-assets are credit-balance accounts that must be subtracted from the Savings banks: Estimates by the National Council of Savings Institutions for all corresponding gross asset categories to yield net asset levels. Contra-assets to savings banks in the United States and for FDIC-insured savings banks that have nonmortgage loans include loans in process, unearned discounts and deferred loan converted to federal savings banks. fees, and specific reserves and valuation allowances. Credit unions: Estimates by the National Credit Union Administration for 3. Holding of stock in Federal Home Loan Bank and Finance leases plus federally chartered and federally insured state-chartered credit unions serving interest are included in "Other" (line 9). natural persons. 4. Excludes checking, club, and school accounts. Life insurance companies: Estimates of the American Council of Life Insurance 5. Data include all federally insured credit unions, both federal and state for all life insurance companies in the United States. Annual figures are annualchartered, serving natural persons. statement asset values, with bonds carried on an amortized basis and stocks at 6. Direct and guaranteed obligations. Excludes federal agency issues not year-end market value. Adjustments for interest due and accrued and for guaranteed, which are shown in the table under "Business" securities. differences between market and book values are not made on each item separately 7. Issues of foreign governments and their subdivisions and bonds of the but are included, in total, in "other assets." International Bank for Reconstruction and Development. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • September 1988 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Type of account or operation year year 1988 1986 19871 Feb. Mar. Apr. May U.S. budget2 1 Receipts, total 769,091 854,143 81,791 60,355 65,730 109,323 59,711 99,348 2 On-budget 568,862 640,741 60,645 40,610 44,958 81,993 39,764 77,786 3 Off-budget 200,228 213,402 21,146 19,745 20,772 27,330 19,947 21,562 4 Outlays, total 990,258 1,004,586 65,786 84,260 94,877 94,433 82,173 89,856 5 On-budget 806,760 810,754 66,573 66,507 76,858 79,508 64,566 72,673 6 Off-budget 183,498 193,832 -787 17,753 18,020 15,925 17,607 17,184 7 Surplus, or deficit (-), total -221,167 -150,444 16,005 -23,905 -29,147 13,890 -22,462 9,492 8 On-budget -237,898 -170,014 -5,928 -25,897 -31,899 2,485 -24,802 5,113 9 Off-budget 16,731 19,570 21,933 1,992 2,752 11,405 2,340 4,379 Source of financing (total) 10 Borrowing from the public 236,187 150,070 5,281 20,157 17,160 -334 7,559 11,391 11 Operating cash (decrease, or increase 12 othei^".'.'. -14 - , 6 3 9 2 6 4 -5 5 , , 0 4 5 2 2 6 -1 -3 7 , , 7 5 3 5 0 5 - 1 7 1 ,2 ,0 5 0 7 2 6 5 , , 0 9 0 7 9 9 -23 9 , , 2 71 7 9 6 -1 2 2 7 , , 3 2 2 2 1 3 -20 - , 2 6 4 3 4 8 MEMO 13 Treasury operating balance (level, end of period) 31,384 36,436 39,924 28,922 22,913 46,189 18,966 39,604 14 Federal Reserve Banks 7,514 9,120 10,276 2,473 2,403 16,186 2,871 9,762 15 Tax and loan accounts 23,870 27,316 29,648 26,450 20,510 30,003 16,095 29,842 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 Fiscal Fiscal Source or type year year 1988 1986 1987 H2 HI H2 HI Apr. May RECEIPTS 1 All sources 769,091 854,143 387,524 447,282 421,712 476,258 109,323 59,711 2 Individual income taxes, net 348,959 392,557 183,156 205,157 192,575 207,801 53,334 17,958 3 Withheld 314,803 322,463 164,071 156,760 170,203 169,300 24,913 27,071 4 Presidential Election Campaign Fund . 36 33 4 30 4 28 7 7 5 Nonwithheld 105,994 142,957 27,733 112,421 31,223 101,614 50,477 9,714 6 Refunds 71,873 72,896 8,652 64,052 8,853 63,141 22,062 18,834 Corporation income taxes 7 Gross receipts 80,442 102,859 42,108 52,396 52,821 58,002 14,030 2,748 8 Refunds 17,298 18,933 8,230 10,881 7,119 8,706 2,004 1,136 9 Social insurance taxes and contributions, net 283,901 303,318 134,006 163,519 143,755 181,058 37,357 33,396 10 Employment taxes and contributions 255,062 273,185 122,246 146,696 130,388 164,412 34,464 24,948 11 Self-employment taxes and contributions 11,840 13,987 1,338 12,020 1,889 14,839 8,833 974 12 Unemployment insurance 24,098 25,418 9,328 14,514 10,977 14,363 2,477 8,073 13 Other net receipts4 4,742 4,715 2,429 2,310 2,390 2,284 416 375 14 Excise taxes 32,919 32,510 15,947 15,845 17,680 16,440 2,767 3,055 15 Customs deposits 13,327 15,032 7,282 7,129 7,993 7,851 1,204 1,282 16 Estate and gift taxes 6,958 7,493 3,649 3,818 3,610 3,863 749 751 17 Miscellaneous receipts3 19,884 19,307 9,605 10,299 10,399 9,950 1,886 1,657 OUTLAYS 18 All types 990,231 1,004,586 506,556 502,898 532,145 512,385 95,433 82,173 19 National defense 273,375 281,999 138,544 142,886 146,995 143,080 26,747 20,967 2 2 2 2 2 1 2 0 3 4 I G E A N n n e g a t e n e t r u i r r e c g n r r u a y a a l l l t t i u r o s e r c n e s i a o e ] n u a c r f c e f , e a s i s r p a s a n c d e, e n a v n i d r o t n e m ch e n n o t logy . 3 1 1 8 4 1 4 3 , , , , , 7 9 4 1 6 3 7 4 5 3 5 6 9 2 9 2 1 1 9 4 7 1 3 , , , , , 1 2 3 6 3 1 1 5 4 6 5 6 6 9 3 1 4 2 8 7 5 , , , , , 4 5 9 1 6 4 9 3 4 6 6 4 8 1 0 1 4 4 2 6 1 , , , , , 3 3 1 3 8 7 3 7 2 2 4 5 5 4 4 1 4 5 7 1 4 , , , , , 4 4 5 4 6 8 6 6 9 4 7 8 9 0 0 7 5 6 7 , , , , 1 8 3 7 5 7 5 6 5 7 2 0 1 5 6 2 1 1 , , , 0 9 3 5 0 9 4 8 6 3 9 9 2 1 7 1 1, , 9 9 5 3 1 1 0 0 0 3 1 7 4 7 3 25 Commerce and housing credit 4,890 6,182 3,764 4,893 3,852 5,951 1,203 163 26 Transportation 28,117 26,228 14,745 12,113 14,096 12,700 2,053 2,427 27 Community and regional development .. 7,233 5,051 3,651 3,108 2,075 2,765 555 296 28 Education, training, employment, and social services 30,585 16,209 14,182 15,592 15,451 2,253 2,410 29 Health 35,935 39,968 18,795 20,318 20,750 22,643 3,791 3,741 30 Social security and medicare 268,921 282,473 138,299 142,864 158,469 135,322 24,920 24,487 31 Income security 119,796 123,250 59,979 62,248 61,201 65,555 12,916 10,214 32 Veterans benefits and services 26,356 26,782 14,190 12,264 14,956 13,241 3,748 1,441 33 Administration of justice 6,603 7,548 3,413 3,626 4,291 4,761 825 831 3 3 5 4 G G e e n n e e r r a al l - g p o u v rp e o rn se m e fi n s t c al assistance 6 6 , , 4 1 3 0 1 4 5 1 , , 9 6 4 2 8 1 2 1 , , 8 8 8 6 6 0 3,3 3 4 3 4 7 3 1 , , 5 1 6 7 0 5 4,3 4 3 4 7 8 697 0 1,017 0 3 3 6 7 N U e n t d i i s n t t r e i r b e u s t t e 6 d offsetting receipts' 1 - 1 3 3 3 6 , , 0 0 0 0 7 8 - 1 3 3 6 8 , , 4 5 5 7 5 0 -1 6 6 6 , , 4 2 7 2 5 6 -1 7 9 0 , , 1 1 0 1 2 0 -1 7 7 1 , , 6 9 8 3 4 3 -1 7 7 6 , , 7 0 6 9 6 8 - 1 2 2 , , 8 5 9 9 5 2 - 1 3 2 , , 3 7 0 1 3 9 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 Financial Statistics • September 1988 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1986 1987 1988 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 1,991.1 2,063.6 2,129.5 2,218.9 2,250.7 2,313.1 2,354.3 2,435.2 2,493.2 2 Public debt securities 1,986.8 2,059.3 2,125.3 2,214.8 2,246.7 2,309.3 2,350.3 2,431.7 2,487.6 3 Held by public 1,634.3 1,684.9 1,742.4 1,811.7 1,839.3 1,871.1 1,893.1 1,954.1 1,996.7 4 Held by agencies 352.6 374.4 382.9 403.1 407.5 438.1 457.2 477.6 490.8 5 Agency securities 4.3 4.3 4.2 4.0 4.0 3.8 4.0 3.5 5.6 6 Held by public 3.2 3.2 3.2 3.0 2.9 2.9 3.0 2.7 5.1 7 Held by agencies 1.1 1.1 1.1 1.1 1.1 1.0 1.0 .8 .6 8 Debt subject to statutory limit 1,973.3 2,060.0 2,111.0 2,200.5 2,232.4 2,295.0 2,336.0 2,417.4 2,487.0 9 Public debt securities 1,972.0 2,058.7 2,109.7 2,199.3 2,231.1 2,293.7 2,334.7 2,416.3 2,486.7 10 Other debt1 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.1 .3 11 MEMO: Statutory debt limit 2,078.7 2,078.7 2,111.0 2,300.0 2,300.0 2,320.0 2,800.0 2,800.0 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 1988 Type and holder 1984 1985 1986 1987 Q2 Q3 Q4 Q1 1 Total gross public debt 1,663.0 1,945.9 2,214.8 2,431.7 2,309.3 2,350.3 2,431.7 2,487.6 By type 2 Interest-bearing debt 1,660.6 1,943.4 2,212.0 2,428.9 2,306.7 2,347.7 2,428.9 2,484.9 3 Marketable 1,247.4 1,437.7 1,619.0 1,724.7 1,659.0 1.676.0 1,724.7 1,758.7 4 Bills 374.4 399.9 426.7 389.5 391.0 378.3 389.5 392.6 5 Notes 705.1 812.5 927.5 1,037.9 984.4 1.005.1 1,037.9 1,059.9 6 Bonds 167.9 211.1 249.8 282.5 268.6 277.6 282.5 291.3 7 Nonmarketable 413.2 505.7 593.1 704.2 647.7 671.8 704.2 726.2 9 8 F S o ta r t e e i g a n n d i s l s o u c e a s l government series 44 9 . . 4 1 87 7 . . 5 5 11 4 0 . . 7 5 13 4 9 . . 0 3 12 5 5 . . 1 4 12 4 9 . . 3 0 13 4 9 . . 0 3 14 6 2. . 9 1 10 Government 9.1 7.5 4.7 4.0 5.1 4.3 4.0 6.1 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 73.1 78.1 90.6 99.2 95.2 97.0 99.2 102.3 13 Government account series 286.2 332.2 386.9 461.3 421.6 440.7 461.3 474.4 14 Non-interest-bearing debt 2.3 2.5 2.8 2.8 2.6 2.5 2.8 2.6 By holder4 15 U.S. government agencies and trust funds 289.6 348.9 403.1 477.6 438.1 457.2 477.6r 490.8 16 Federal Reserve Banks 160.9 181.3 211.3 222.6 212.3 211.9 222.6 217.5 17 Private investors 1,212.5 1,417.2 1,602.0 1,745.2 1,657.7 1,682.6 1,745.2 1,778.2 18 Commercial banks 183.4 192.2 232.1 252.3 237. r 250.5' 252.3' 260.7 19 Money market funds 25.9 25.1 28.0 14.3 20.6 15.2 14.3 14.9 20 Insurance companies 76.4 115.4 135.4 n.a. 140.0 143.0 n.a. n.a. 21 Other companies 50.1 59.0 68.8 84.6 79.7 81.8 84.6 n.a. 22 State and local Treasurys 173.0 224.0 260.0 n.a. n.a. n.a. n.a. n.a. Individuals 23 Savings bonds 74.5 79.8 92.3 101.1 96.8 98.5 101.1 104.0 24 Other securities 69.3 75.0 70.5 n.a. 68.6 70.4 n.a. n.a. 25 Foreign and international5 192.9 212.5 251.6 287.3 268.6 267.0 287.3 323.5 26 Other miscellaneous investors6 354.7 434.2 467.1 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 11998855 11998866 11998877 Apr/ May' June May 25r June 1 June 8 June 15 June 22 June 29 Immediate delivery2 1 U.S. Treasury securities 75,331 95,445 110,052 94,386 105,200 110,315 106,586 115,704 105,210 100,245 122,109 110,494 By maturity 2 Bills 32,900 34,247 37,924 29,292 30,344 27,888 31,331 31,318 27,882 23,013 28,985 29,529 3 Other within 1 year 1,811 2,115 3,272 3,577 3,848 3,809 4,065 4,373 2,941 3,601 3,940 4,145 4 1-5 years 18,361 24,667 27,918 24,705 30,825 31,074 34,267 32,575 26,522 26,100 39,533 33,618 5 5-10 years 12,703 20,456 24,014 22,644 23,925 27,904 22,216 30,399 28,858 28,061 30,013 23,490 6 Over 10 years 9,556 13,961 16,923 14,168 16,259 19,640 14,707 17,039 19,007 19,470 19,637 19,712 By type of customer 1 U.S. government securities dealers 3,336 3,670 2,936 2,815 2,620 2,761 2,415 2,654 1,910 2,877 2,917 3,348 8 U.S. government securities brokers 36,222 49,558 61,539 55,511 63,549 65,733 64,740 69,266 63,992 59,226 75,418 63,573 9 All others3 35,773 42,218 45,576 36,059 39,031 41,820 39,430 43,784 39,307 38,140 43,773 43,572 10 Federal agency securities 11,640 16,748 18,087 14,705 15,182 15,649 15,548 16,246 18,797 16,239 11,913 14,906 11 Certificates of deposit 4,016 4,355 4,112 3,426 2,910 3,193 3,012 3,366 3,101 2,984 3,282 3,465 12 Bankers acceptances 3,242 3,272 2,965 2,458 2,125 2,119 1,886 1,788 2,342 1,947 2,006 2,169 13 Commercial paper 12,717 16,660 17,135 18,441 17,765 24,139 17,132 20,722 20,480 23,365 27,976 24,765 Futures contracts* 14 Treasury bills 5,561 3,311 3,233 2,995 3,193 2,201 2,423 2,658 2,048 1,844 3,111 1,605 15 Treasury coupons 6,085 7,175 8,964 8,773 9,081 11,474 10,274 10,351 11,427 9,952 12,423 11,429 16 Federal agency securities 252 16 5 0 0 0 0 0 0 0 0 0 Forward transactions 17 U.S. Treasury securities 1,283 1,876 2,029 1,503 2,516 2,318 2,099 3,310 1,058 1,904 4,186 2,153 18 Federal agency securities 3,857 7,831 9,290 7,422 8,598 9,370 7,242 7,135 10,482 10,866 9,957 7,148 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 • September 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 Apr. May' June June 1 June 8 June 15 June 22 June 29 Positions Net immediate2 1 U.S. Treasury securities 7,391 12,912 -6,216 -15,105' -26,408 -25,104 -32,054 -27,543 -25,150 -25,949 -19,915 2 Bills 10,075 12,761 4,317 5,536' 86 1,797 -2,618 4,390 2,219 685 1,198 3 Other within 1 year 1,050 3,706 1,557 -970 -2,613 -1,000 -2,793 -1,773 -730 -183 -654 4 1-5 years 5,154 9,146 649 -3,038' -6,785 -7,514 -8,217 -10,968 -7,990 -9,373 -2,447 5 5-10 years -6,202 -9,505 -6,564 -8,587' -8,649 -10,276 -9,159 -9,832 -10,213 -9,544 -11,088 6 Over 10 years -2,686 -3,197 -6,174 -8,046' -8,446 -8,112 -9,267 -9,360 -8,435 -7,535 -6,924 7 Federal agency securities 22,860 32,984 31,910 26,622' 26,785 29,383 27,407 27,110 30,692 30,305 29,989 8 Certificates of deposit 9,192 10,485 8,188 5,678 6,075 8,067 7,034 7,457 7,813 8,359 8,503 9 Bankers acceptances 4,586 55,,552266 3,661 3,059 2,395 2,617 2,209 2,564 2,637 2,351 2,917 10 Commercial paper 5,570 88,,008899 7,4% 5,591 4,519 5,561 5,212 4,828 5,256 6,095 5,612 Futures positions 11 Treasury bills -7,322 -18,059 -3,373 -3,681 -2,027 -2,695 -3,067 -3,003 -3,987 -2,206 -2,024 12 Treasury coupons 4,465 3,473 5,988 5,101 4,460 4,122 5,340 4,561 4,118 3,651 3,748 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 1,090' 2,191 1,092 3,051 1,161 870 356 1,743 15 Federal agency securities -9,420 -11,840 -18,817 -16,528' -14,977 -17,813 -14,820 -17,337 -18,527 -17,311 -18,567 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 68,035 98,954 124,791 128,158 133,373 139,006 148,771 140,419 145,354 128,772 141,251 17 Term 80,509 108,693 148,033 173,474 173,858 168,069 162,360 165,311 168,917 176,891 163,380 Repurchase agreements IK Overnight and continuing 101,410 141,735 170,840 169,194 169,031 176,017 179,127 171,040 185,031 167,758 180,348 19 Term 70,076 102,640 120,980 138,097 139,537 131,104 126,721 128,004 128,478 140,894 130,217 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 Dec. Jan. Feb. Mar. Apr. May 1 Federal and federally sponsored agencies 271,220 293,905 307,361 341,386 338,483 346,901 351,356 348,273 n.a. 2 Federal agencies 35,145 36,390 36,958 37,981 37,637 37,286 36,844 36,672 36,430 3 Defense Department' 142 71 33 13 13 12 12 11 11 4 Export-Import Bank ' 15,882 15,678 14,211 11,978 11,978 11,978 11,494 11,494 11,494 5 Federal Housing Administration 133 115 138 183 98 101 100 103 105 6 Government National Mortgage Association participation certificates5 2,165 2,165 2,165 1,615 1,615 1,165 11,,116655 830 883300 7 Postal Service6 1,337 1,940 3,104 6,103 6,103 6,103 6,103 6,103 5,842 8 Tennessee Valley Authority 15,435 16,347 17,222 18,089 17,830 17,927 17,970 18,131 18,148 9 United States Railway Association6 51 74 85 0 0 0 0 0 0 10 Federally sponsored agencies7 237,012 257,515 270,553 303,405 300,846 309,615 314,512 311,601 n.a. 11 Federal Home Loan Banks 65,085 74,447 88,752 115,725 116,374 117,569 118,250 118,153 117,864 12 Federal Home Loan Mortgage Corporation 10,270 11,926 13,589 17,645 15,581 19,405 20,143 17,199 n.a. 13 Federal National Mortgage Association 83,720 93,8% 93,563 97,057 97,195 98,593 99,853 100,911 102,515 14 Farm Credit Banks 72,192 68,851 62,478 55,275 54,072 55,275 56,145 54,311 54,578 15 Student Loan Marketing Association8 5,745 8,395 12,171 16,503 16,424 16,923 18,271 18,877 18,434 16 Financing Corporation9 n.a. n.a. n.a. 1,200 1,200 1,850 1,850 2,150 2,900 MEMO 17 Federal Financing Bank debt10 145,217 153,373 157,510 152,417 152,099 150,178 149,721 150,044 149,986 Lending to federal and federally sponsored agencies 18 Export-Import Bank 15,852 15,670 14,205 1111,,997722 11,972 1111,,997722 1111,,448888 1111,,448888 1111,,448888 19 Postal Service6 1,087 1,690 2,854 5,853 5,853 5,853 5,853 5,853 5,592 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 16,709 16,450 16,547 16,590 16,751 16,768 22 United States Railway Association6 51 74 85 0 0 0 0 0 0 Other Lending" 23 Farmers Home Administration 58,971 64,234 65,374 59,674 59,674 59,674 5599,,667744 5599,,667744 5599,,667744 24 Rural Electrification Administration 20,693 20,654 21,680 21,191 21,187 19,193 19,184 19,203 19,218 25 Other 29,853 31,429 32,545 32,078 32,023 31,999 31,992 32,135 32,306 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 National Mortgage Association acting as trustee for the Farmers Home Admin- incurs debt solely for the purpose of lending to other agencies, its debt is not istration; 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. OflF-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 Nonfinancial Statistics • September 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 Nov. Dec. Jan. Feb. Mar. Apr. May' June 1 All issues, new and refunding1 214,189 147,011 102,407 8,320 8,385 5,412 8,585 9,821 5,847 7,846 12,665 Type of issue 2 General obligation 52,622 46,346 30,589 2,472 1,995 1,259 2,880 2,776 1,707 3,085 4,044 3 Revenue 161,567 100,664 71,818 5,848 6,390 4,153 5,705 7,045 4,140 4,761 8,621 Type of issuer 4 State 13,004 14,474 10,102 431 550 423 1,197 739' 441 913 1,280 5 Special district and statutory authority 134,363 89,997 65,460 5,076 5,447 3,220 5,154 6,310' 4,078 4,625 8,025 6 Municipalities, counties, and townships 66,822 42,541 26,845 2,813 2,388 1,769 2,234 2,772' 1,328 2,308 3,360 7 Issues for new capital, total 156,050 83,490 56,789 6,626 5,913 2,862 5,773 6,044 3,948 5,190 8,659 Use of proceeds 8 Education 16,658 16,948 9,525 1,002 931 841 754 933 911 1,316 1,289 9 Transportation 12,070 11,666 3,677 351 455 189 826 559 215 452 748 10 Utilities and conservation 26,852 35,383 7,912 1,094 377 326 655 1,016 429 580 627 11 Social welfare 63,181 17,332 11,107 1,664 1,278 740 650 1,218 1,099 694 2,026 12 Industrial aid 12,892 5,594 6,551 330 1,297 153 2,473 105 298 248 428 13 Other purposes 24,398 47,433 18,020 2,185 1,575 613 415 2,213 996 1,900 3,541 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 1987 1988 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998855 11998866 11998877 oorr uussee Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May 1 All issues1 239,015 423,726 392,156 20,710 14,322 11,872 22,175 22,394 25,902 21,084 22,913 2 Bonds2 203,500 355,293 325,648 17,631 13,624 11,098 19,485 18,504 20,815 18,372 18,999 Type of offering 3 Public, domestic 119,559 231,936 209,279 16,135 12,891 10,763 18,246 16,713 19,827 16,177 17,200 4 Private placement, domestic 46,200 80,760 92,070 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5. Sold abroad 37,781 42,596 24,299 1,496 733 335 1,239 1,791 918 2,195 1,799 Industry group 6 Manufacturing 63,973 91,548 61,666 2,784 1,280 928 3,053 3,151 3,482 4,495 4,121 7 Commercial and miscellaneous 17,066 40,124 49,327 1,165 483 2,577 2,084 1,3% 1,007 771 1,367 8 Transportation 6,020 9,971 11,974 263 0 226 0 200 1,017 890 184 9 Public utility 13,649 31,426 23,004 1,025 895 1,570 1,142 1,718 2,259 1,170 1,909 10 Communication 10,832 16,659 7,340 1,384 290 510 206 101 115 411 69 11 Real estate and financial 91,958 165,564 172,343 11,011 10,676 5,287 13,000 11,937 12,935 10,636 11,348 12 Stocks3 35,515 68,433 66,508 3,079 698 774 2,690 3,890 5,087r 2,712 3,914 Type 13 Preferred 6,505 11,514 10,123 236 162 61 1,388 376 625 241 285 14 Common 29,010 50,316 43,228 2,843 533 713 1,302 3,534 4,490 2,471 3,629 66,,660033 nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. nn..aa.. Industry group 16 Manufacturing 5,700 15,027 13,880 703 237 76 268 296 256 318 1,080 17 Commercial and miscellaneous 9,149 10,617 12,888 656 86 14 360 44 99 276 143 18 Transportation 1,544 2,427 2,439 40 149 1 1 474 32 150 5 19 Public utility 1,966 4,020 4,322 75 25 0 100 142 93 238 56 20 Communication 978 1,825 1,458 107 1 11 60 0 63 109 78 21 Real estate and financial 16,178 34,517 31,521 1,498 200 672 1,901 2,933 4,544 1,621 2,542 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. Before 1987, annual totals include Excludes secondary offerings, employee stock plans, investment companies other underwritten issues only. than closed-end, intracorporate transactions, equities sold abroad, and Yankee SOURCES. IDD Information Services, Inc., U.S. Securities and Exchange bonds. Stock data include ownership securities issued by limited partnerships. Commission and the Board of Governors of the Federal Reserve System. 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr/ May INVESTMENT COMPANIES1 1 Sales of own shares2 411,751 381,260 25,990 21,927 26,494 30,343 23,265 24,589 23,162 19,579 2 Redemptions of own shares3 239,394 314,252 34,597 20,400 28,099 22,324 20,914 23,968 25,000 21,412 3 Net sales 172,357 67,008 -8,607 1,507 -1,605 8,019 2,351 620 -1,828 -1,833 4 Assets4 424,156 453,842 456,422 446,479 453,842 468,998 481,232 473,206 473,321 468,738 5 Cash position5 30,716 38,006 40,929 41,432 38,006 40,157 41,232 43,561 45,307 45,323 6 Other 393,440 415,836 415,493 405,047 415,836 428,841 439,995 426,645 428,014 423,415 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' 1988 AAccccoouunntt 11998855'' 11998866'' 11998877'' Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ql' 1 Corporate profits with inventory valuation and capital consumption adjustment 282.3 298.8 310.4 297.1 301.2 293.9 298.3 305.2 322.0 316.1 316.2 2 Profits before tax 224.2 236.3 276.7 230.3 240.5 252.1 261.8 273.7 289.4 281.9 286.2 3 Profits tax liability 96.4 106.6 133.8 104.9 107.9 114.3 126.3 132.6 140.0 136.2 136.9 4 Profits after tax 127.8 129.8 142.9 125.4 132.6 137.9 135.5 141.1 149.5 145.7 149.4 5 Dividends 83.2 88.2 95.5 88.0 88.9 89.8 91.7 94.0 97.0 99.3 101.3 6 Undistributed profits 44.6 41.6 47.4 37.4 43.7 48.1 43.8 47.0 52.4 46.4 48.1 7 Inventory valuation -1.7 8.3 -18.0 11.8 8.7 -8.1 -14.4 -20.0 -19.5 -18.2 -19.4 8 Capital consumption adjustment 59.7 54.2 51.7 55.0 52.0 49.8 50.8 51.5 52.1 52.4 49.4 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 • September 1988 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A Billions of dollars; quarterly data are at seasonall aydjusted annual rates. 1986 1987 1988 IInndduussttrryy 11998866 11998877 1199888811 04 QL Q2 Q3 04 QL Q21 Q31 1 Total nonfarm business 379.47 388.60 430.23 386.09 374.23 377.65 393.13 409.37 409.73 429.01 438.22 Manufacturing 2 Durable goods industries 69.14 70.91 163.01 69.87 70.47 68.76 7711..7788 72.64 7755..3333 7799..0000 7799..3300 3 Nondurable goods industries 73.56 74.55 85.39 74.20 70.18 72.03 75.78 80.20 82.45 83.82 86.43 Nonmanufacturing 4 Mining 11.22 11.34 12.39 10.31 10.31 11.02 1111..6644 1122..3399 1122..5500 1122..8877 1122..5511 Transportation 5 Railroad 6.66 5.91 6.65 6.41 5.55 5.77 6.21 6.10 6.76 6.78 6.81 6 Air 6.26 6.55 7.62 6.84 7.46 5.72 5.91 7.12 6.90 7.44 8.43 7 Other 5.89 6.39 6.97 6.25 5.97 6.19 7.05 6.35 6.94 6.58 7.37 Public utilities 8 Electric 33.91 31.58 32.90 33.78 30.85 31.13 31.31 33.01 29.94 32.55 34.31 9 Gas and other 12.47 13.18 14.28 12.34 12.75 12.35 13.58 14.06 14.37 13.81 14.63 10 Commercial and other2 160.38 168.19 186.40 166.08 160.70 164.69 169.87 177.50 174.54 186.15 188.44 •Trade 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 89.9 111.9 123.4 135.3 134.7 131.1 134.7 141.6 141.1 2 Business 113.4 137.8 157.5 166.8 159.7 173.4 181.4 188.1 188.3 207.6 3 Real estate 20.5 23.8 28.0 29.8 31.0 32.6 34.7 36.5 38.0 39.5 4 Total 217.3 251.5 297.4 320.0 326.0 340.6 347.2 359.3 367.9 388.2 Less: 5 Reserves for unearned income 30.3 33.8 39.2 40.7 42.4 41.5 40.4 41.2 42.5 45.3 6 Reserves for losses 3.7 4.2 4.9 5.1 5.4 5.8 5.9 6.2 6.5 6.8 7 Accounts receivable, net 183.2 213.5 253.3 274.2 278.2 293.3 300.9 311.9 318.9 336.1 8 All other 34.4 35.7 45.3 49.5 60.0 58.6 59.0 57.7 64.5 58.2 9 Total assets 217.6 249.2 298.6 323.7 338.2 351.9 359.9 369.6 383.4 394.3 LIABILITIES 10 Bank loans 18.3 20.0 18.0 16.3 16.8 18.6 17.2 17.3 15.9 16.4 11 Commercial paper 60.5 73.1 99.2 108.4 112.8 117.8 119.1 120.4 124.2 128.4 Debt 12 Other short-term 11.1 12.9 12.7 15.8 16.4 17.5 21.8 24.8 26.9 28.0 13 Long-term 67.7 77.2 94.4 106.9 111.7 117.5 118.7 121.8 128.2 137.1 14 All other liabilities 31.2 34.5 41.5 40.9 45.0 44.1 46.5 49.1 48.6 52.8 15 Capital, surplus, and undivided profits 28.9 31.5 32.8 35.4 35.6 36.4 36.6 36.3 39.5 31.5 16 Total liabilities and capital 217.6 249.2 298.6 323.7 338.2 351.9 359.9 369.6 383.4 394.3 1. NOTE. Components may not add to totals because of rounding. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1 Millions of dollars, seasonally adjusted 1987 1988 TTyyppee Nov. Dec. Jan. Feb. Mar. Apr. May 1 Total 156,297 171,966 202,829 205,869 206,755 213,337 216,007 218,914 220,304 Retail financing of installment sales 2 Automotive (commercial vehicles) 20,660 25,952 34,454 35,674 36,419 36,318 36,914 37,619 37,219 3 Business, industrial, and farm equipment 22,483 22,950 24,764 24,987 2255,,447744 2266,,997766 2277,,008811 2277,,226633 2277,,008811 Wholesale financing 4 Automotive 23,988 23,419 30,901 31,059 30,115 28,654 27,329 27,361 28,260 5 Equipment 4,568 5,423 5,794 5,693 5,308 5,323 5,251 5,429 5,237 6 All other 6,809 7,079 8,151 8,408 8,454 8,331 88,,334477 88,,331111 8,414 Leasing 7 Automotive 16,275 19,783 22,013 21,943 22,943 23,100 23,493 23,458 23,690 8 Equipment 34,768 37,833 41,964 43,002 43,245 48,175 50,411 51,092 52,126 9 Loans on commercial accounts receivable and factored commercial accounts receivable 15,765 15,959 18,501 18,024 18,506 17,862 17,895 18,789 18,700 10 All other business credit 10,981 13,568 16,287 17,079 16,291 17,062 19,287 19,592 19,578 Net change (during period) 11 19,607 15,669 1,700 3,040 886 549 2,670 2,907 1,390 Retail financing of installment sales 12 Automotive (commercial vehicles) 5,067 5,292 589 1,220 745 -101 596 705 -400 13 Business, industrial, and farm equipment -363 467 1 223 487 -232 105 182 -181 Wholesale financing 14 Automotive 5,423 -569 505 158 -944 -1,461 -1,325 32 899 15 Equipment -867 855 65 -101 -385 14 -72 178 -192 16 All other 1,069 270 77 257 46 -123 16 -36 103 Leasing 17 Automotive 3,8% 3,508 130 -70 1,000 157 393 -34 231 18 Equipment 2,685 3,065 53 1,038 243 632 22,,223366 681 1,034 19 Loans on commercial accounts receivable and factored commercial accounts receivable 2,161 194 139 -477 482 -643 -643 894 -88 20 All other business credit 536 2,587 141 792 -788 770 689 305 -14 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 • September 1988 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1987 1988 IItteemm 11998855 11998866 11998877 Dec. Jan. Feb. Mar. Apr. May' June Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms 1 Purchase price (thousands of dollars) 104.1 118.1 137.0 147.3 150.1 139.4 147.2 151.4 145.3 141.0 2 Amount of loan (thousands of dollars) 77.4 86.2 100.5 107.7 108.4 104.3 106.3 112.1 108.0 103.6 3 Loan/price ratio (percent) 77.1 75.2 75.2 74.9 74.0 76.4 75.0 76.2 76.4 74.6 4 Maturity (years) 26.9 26.6 27.8 28.2 28.2 28.1 27.3 27.7 28.1 27.7 5 Fees and charges (percent of loan amount) 2.53 2.48 2.26 2.22 2.17 2.23 2.28 2.20 2.15 2.12 6 Contract rate (percent per year) 11.12 9.82 8.94 8.78 8.75 8.76 8.77 8.76 8.59 8.72 Yield (percent per year) 7 FHLBB series 11.58 10.25 9.31 9.15 9.10 9.12 9.15 9.13 8.95 9.07 8 HUD series* 12.28 10.07 10.13 10.52 10.09 9.80 9.99 10.19 10.48 n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 12.24 9.91 10.12 10.63 10.17 9.86 10.28 10.46 10.84 n.a. 10 GNMA securities6 11.61 9.30 9.42 10.18 9.83 9.53 9.53 9.67 9.93 9.88 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 94,574 98,048 95,030 96,649 97,159 98,358 99,787 100,7% 101,747 102,368 12 FHA/VA-insured 34,244 29,683 21,660 20,288 20,237 20,181 20,094 19,932 19,805 19,765 13 Conventional 60,331 68,365 73,370 76,361 76,923 78,177 79,693 80,864 81,941 82,603 Mortgage transactions (during period) 14 Purchases 21,510 30,826 20,531 3,747 1,267 2,629 2,776 2,409 2,138 2,372 Mortgage commitments7 15 Contracted (during period) 20,155 32,987 25,415 3,115 2,254 2,516 3,823 2,555 2,142 2,179 16 Outstanding (end of period) 3,402 3,386 4,886 4,886 5,542 4,966 6,149 6,033 5,777 5,365 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)* 17 Total 12,399 13,517 12,802 12,871 13,090 13,926 14,386 14,822 n.a. n.a. 18 FHA/VA 841 746 686 657 632 646 641 635 n.a. n.a. 19 Conventional 11,559 12,771 12,116 12,215 12,458 13,280 13,745 14,187 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,012 103,474 76,845 3,267 2,168 3,293 2,932 2,772 n.a. n.a. 21 Sales 38,905 100,236 75,082 3,201 1,832 2,414 2,312'' 2,271' n.a. n.a. Mortgage commitments9 22 Contracted (during period) 48,989 110,855 71,467 2,693 3,868 4,910 4,262 6,437 n.a. n.a. 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 1988 Type of holder, and type of property 1986 1987 Qi Q2 Q3 Q4 1 All holders 2,269,173 2,568,562 2,908,072 2,665,339 2,756,383 2,832,137 2,908,072 2 1- to 4-family 1,467,409 1,668,209 1,888,158 1,712,737 1,780,438 1,835,799 1,888,158 3 Multifamily 214,045 247,024 273,740 257,859 263,564 268,019 273,740 4 Commercial 482,029 556,569 656,203 601,207 620,259 637,412 656,203 5 Farm 105,690 %,760 89,971 93,536 92,122 90,907 89,971 6 Selected financial institutions 1,390,394 1,507,289 1,699,922 1,559,681 1,606,881 1,647,928 1,699,922 7 Commercial banks 429,1% 502,534 590,829 519,606 544,640 566,600 590,829 8 1- to 4-family 213,434 235,814 275,166 242,042 252,589 262,352 275,166 9 Multifamily 23,373 31.173 33,493 29,759 30,547 31,614 33,493 10 Commercial 181,032 222.799 267,679 234,619 247,676 258,4% 267,679 11 Farm 11,357 12,748 14,491 13,186 13,828 14,138 14,491 12 Savings institutions3 760,499 777,312 856,369 809,245 824, %1 838,737 856,369 13 1- to 4-family 554,301 558,412 598,441 555,693 572,075 583,432 598,441 14 Multifamily 89,739 97,059 106,346 104,035 102,933 104,609 106,346 15 Commercial 115,771 121,236 150,825 148,712 149,183 149,938 150,825 1 1 6 7 Lif F e a i r n m s urance companies 171,7 6 9 8 7 8 193, 6 8 0 4 5 2 212,375 195, 8 7 0 4 5 3 ' '200,'382 ''204,263 ' 2i2,375 18 1- to 4-family 12,381 12,827 13,226 12,903 12,745 12,742 13,226 19 Multifamily 19,894 20,952 22,524 20,934 21,663 21,968 22,524 20 Commercial 127,670 149,111 166,722 151,420 155,611 159,464 166,722 21 Farm 11,852 10,952 9,903 10,486 10,363 10,089 9,903 22 Finance companies 28,902 33,601 40,349 35,087 36,898 38,328 40,349 23 Federal and related agencies 166,928 203.800 192,721 199,509 196,514 191,520 192,721 24 Government National Mortgage Association.. 1,473 889 444 687 667 458 444 25 1- to 4-family 539 47 25 46 45 25 25 26 Multifamily 934 842 419 641 622 433 419 27 Farmers Home Administration5 733 48,421 43,051 48,203 48,085 42,978 43,051 28 1- to 4-family 183 21,625 18,169 21,390 21,157 18,111 18,169 29 Multifamily 113 7,608 8,044 7,710 7,808 7,903 8,044 30 Commercial 159 8,446 6,603 8,463 8,553 6,592 6,603 31 Farm 278 10,742 10,235 10,640 10,567 10,372 10,235 32 Federal Housing and Veterans Administration 4,920 5,047 5,574 5,177 5,268 5,330 5,574 33 1- to 4-family 2,254 2,386 2,557 2,447 2,531 2,452 2,557 34 Multifamily 2,666 2,661 3,017 2,730 2,737 2,878 3,017 35 Federal National Mortgage Association 98,282 97,895 %,649 95,140 94,064 94,884 %,649 36 1- to 4-family 91,966 90,718 89,666 88,106 87,013 87,901 89,666 37 Multifamily 6,316 7,177 6,983 7,034 7,051 6,983 6,983 38 Federal Land Banks 47,498 39,984 34,131 37,362 35,833 34,930 34,131 39 1- to 4-family 2,798 2,353 2,008 2,198 2,108 2,055 2,008 40 Farm 44,700 37,631 32,123 35,164 33,725 32,875 32,123 41 Federal Home Loan Mortgage Corporation .. 14,022 11,564 12,872 12,940 12,597 12,940 12,872 42 1- to 4-family 11,881 10,010 11,430 11,774 11,172 11,570 11,430 43 Multifamily 2,141 1,554 1,442 1,166 1,425 1,370 1,442 44 Mortgage pools or trusts6 415,042 531,591 670,394 575,435 615,142 648,084 670,394 45 Government National Mortgage Association.. 212,145 262,697 317,555 281,116 293,246 308,339 317,555 46 1- to 4-family 207,198 256,920 309,806 274,710 286,091 300,815 309,806 47 Multifamily 4,947 5,777 7,749 6,406 7,155 7,524 7,749 48 Federal Home Loan Mortgage Corporation .. 100,387 171,372 212,634 186,295 200,284 208,872 212,634 49 1- to 4-family 99,515 166,667 205,977 180,602 194,238 202,308 205,977 50 Multifamily 872 4,705 6,657 5,693 6,046 6,564 6,657 51 Federal National Mortgage Association 54,987 97.174 139,960 107,673 121,270 130,540 139,960 52 1- to 4-family 54,036 95,791 137,988 106,068 119,617 128,770 137,988 53 Multifamily 951 1,383 1,972 1,605 1,653 1,770 1,972 54 Farmers Home Administration5 47,523 348 245 351 342 333 245 55 1- to 4-family 22,186 142 121 154 149 144 121 56 Multifamily 6,675 57 Commercial 8,190 132 63 127 126 124 63 58 Farm 10,472 74 61 70 67 65 61 59 Individuals and others7 2%,809 325,882 345,035 330,714 337,846 344,605 345,035 60 1- to 4-family 165,835 180,8% 183,229 179,517 182,010 184,794 183,229 61 Multifamily 55,424 66,133 75,094 70,146 73,924 74,403 75,094 62 Commercial 49,207 54,845 64,311 57,866 59,110 62,798 64,311 63 Farm 26,343 24,008 22,401 23,185 22,802 22,610 22,401 1. Based on data from various institutional and governmental sources, with 4. Assumed to be entirely 1- to 4-family loans. some quarters estimated in part by the Federal Reserve. Multifamily debt refers 5. FmHA-guaranteed securities sold to the Federal Financing Bank were to loans on structures of five or more units. reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4, 2. Includes loans held by nondeposit trust companies but not bank trust because of accounting changes by the Farmers Home Administration. departments. 6. Outstanding principal balances of mortgage pools backing securities insured 3. Includes savings banks and savings and loan associations. Beginning 1987:1, or guaranteed by the agency indicated. data reported by FSLIC-insured institutions include loans in process and other 7. Other holders include mortgage companies, real estate investment trusts, contra assets (credit balance accounts that must be subtracted from the corre- state and local credit agencies, state ana local retirement funds, noninsured sponding gross asset categories to yield net asset levels). pension funds, credit unions, and other U.S. agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • September 1988 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars 1987 1988 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998866 11998877 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr/ May Amounts outstanding (end of period) 1 Total 571,833 613,022 602,977 606,926 608,728 613,022 619,258 624,294 629,485 633,336 635,757 By major holder 2 Commercial banks 262,139 281,564 276,805 278,855 279,550 281,564 284,753 287,344 290,831 293,166 295,316 3 Finance companies 133,698 140,072 138,395 139,236 138,928 140,072 141,695 142,946 144,053 144,516 144,454 4 Credit unions 76,191 81,065 80,351 80,672 80,923 81,065 81,662 81,897 82,595 83,204 83,488 5 Retailers3 39,660 42,782 41,632 42,012 42,291 42,782 42,926 43,080 43,271 43,295 43,162 6 Savings institutions 56,881 63,949 62,098 62,457 63,412 63,949 64,633 65,396 65,078 65,387 65,495 7 Gasoline companies 3,264 3,590 3,696 3,694 3,624 3,590 3,590 3,631 3,657 3,769 3,842 By major type of credit 8 Automobile 246,109 267,180 261,902 263,823 264,474 267,180 269,883 273,133 276,762 278,567 279,164 9 Commercial banks 100,907 108,438 106,685 107,414 107,727 108,438 109,298 111,021 113,593 114,868 115,916 10 Credit unions 38,413 43,474 42,118 42,612 43,071 43,474 43,959 44,251 44,795 45,293 45,617 11 Finance companies 92,350 98,026 96,809 97,261 96,733 98,026 99,147 100,123 100,669 100,564 99,708 12 Savings institutions 14,439 17,242 16,290 16,536 16,943 17,242 17,479 17,738 17,705 17,841 17,924 13 Revolving 136,381 159,307 152,553 155,196 156,425 159,307 162,065 163,462 165,643 167,356 169,044 14 Commercial banks 86,757 98,808 96,083 97,416 97,378 98,808 100,879 101,537 103,152 104,250 105,595 15 Retailers 34,320 36,959 35,941 36,270 36,501 36,959 37,087 37,231 37,408 37,414 37,259 16 Gasoline companies 3,264 3,590 3,696 3,694 3,624 3,590 3,590 3,631 3,657 3,769 3,842 17 Savings institutions 8,366 13,279 11,333 11,922 12,636 13,279 13,601 13,945 14,059 14,309 14,515 18 Credit unions 3,674 6,671 5,500 5,894 6,286 6,671 6,908 7,117 7,368 7,614 7,833 19 Mobile home 26,883 25,957 26,845 26,698 26,604 25,957 25,926 25,857 25,732 25,764 25,704 20 Commercial banks 8,926 9,101 9,157 9,174 9,169 9,101 9,064 9,035 8,993 9,047 8,969 21 Finance companies 8,822 7,771 8,235 8,228 8,211 7,771 7,753 7,679 7,640 7,575 7,578 22 Savings institutions 9,135 9,085 9,453 9,296 9,224 9,085 9,109 9,143 9,099 9,142 9,157 23 Other 162,460 160,578 161,677 161,209 161,225 160,578 161,384 161,842 161,348 161,649 161,845 24 Commercial banks 65,549 65,217 64,880 64,851 65,276 65,217 65,512 65,750 65,094 65,001 64,836 25 Finance companies 32,526 34,275 33,351 33,747 33,984 34,275 34,795 35,144 35,744 36,376 37,168 26 Credit unions 34,104 30,920 32,733 32,166 31,566 30,920 30,795 30,529 30,432 30,297 30,039 27 Retailers 5,340 5,823 5,691 5,742 5,790 5,823 5,839 5,849 5,863 5,880 5,903 28 Savings institutions 24,941 24,343 25,022 24,703 24,609 24,343 24,444 24,570 24,216 24,095 23,899 Net change (during period) 29 Total 54,078 41,189 4,787 3,949 1,802 4,294 6,236 5,036 5,191 3,851 2,421 By major holder 30 Commercial banks 20,495 19,425 2,926 2,050 695 2,014 3,189 2,591 3,487 2,335 2,150 31 Finance companies2 22,670 6,374 732 841 -308 1,144 1,623 1,251 1,107 463 -62 32 Credit unions 4,268 4,874 535 321 251 142 597 235 698 609 284 33 Retailers3 466 3,122 251 380 279 491 144 154 191 24 -133 34 Savings institutions 7,223 7,068 300 359 955 537 684 763 -318 309 108 35 Gasoline companies -1,044 326 43 -2 -70 -34 0 41 26 112 73 By major type of credit 36 Automobile 36,473 21,071 2,344 1,921 651 2,706 2,703 3,250 3,629 1,805 597 37 Commercial banks 8,178 7,531 1,024 729 313 711 860 1,723 2,572 11,,227755 1,048 38 Credit unions 2,388 5,061 603 494 459 403 485 292 544 449988 324 39 Finance companies 22,823 5,676 522 452 -528 1,293 1,121 976 546 -105 -856 40 Savings institutions 3,084 2,803 195 246 407 299 237 259 -33 136 83 41 Revolving 14,368 22,926 2,738 2,643 1,229 2,882 2,758 1,397 2,181 1,713 1,688 42 Commercial banks 11,150 12,051 1,941 1,333 -38 1,430 2,071 658 1,615 1,098 1,345 43 Retailers 47 2,639 210 329 231 458 128 144 177 6 -155 44 Gasoline companies -1,044 326 43 -2 -70 -34 0 41 26 112 73 45 Savings institutions 2,078 4,913 139 589 714 643 322 344 114 250 206 46 Credit unions 2,137 2,997 405 394 392 385 237 209 251 246 219 47 Mobile home 49 -926 -34 -147 -94 -647 -31 -69 -125 32 -60 48 Commercial banks -627 175 1 17 -5 -68 -37 -29 -42 54 -78 49 Finance companies -472 -1,051 -46 -7 -17 -440 -18 -74 -39 -65 3 50 Savings institutions 1,148 -50 11 -157 -72 -139 24 34 -44 43 15 51 Other 3,188 -1,882 -261 -468 16 -647 806 458 -494 301 1% 52 Commercial banks 1,794 -332 -40 -29 425 -59 295 238 -656 -93 -165 53 Finance companies 319 1,749 256 3% 237 291 520 349 600 632 792 54 Credit unions -257 -3,184 -473 -567 -600 -646 -125 -266 -97 -135 -258 55 Retailers 419 483 41 51 48 33 16 10 14 17 23 56 Savings institutions 913 -598 -45 -319 -94 -266 101 126 -354 -121 -196 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 held by 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 Nov. Dec. Jan. Feb. Mar. Apr. May INTEREST RATES Commercial banks2 1 48-month new car 12.91 11.33 10.45 10.86 n.a. n.a. 10.72 n.a. n.a. 1100..5555 2 24-month personal 15.94 14.82 14.22 14.58 n.a. n.a. 14.46 n.a. n.a. 14.40 3 120-month mobile home3 14.% 13.99 13.38 13.62 n.a. n.a. 13.45 n.a. n.a. 13.49 4 Credit card 18.69 18.26 17.92 17.82 n.a. n.a. 17.80 n.a. n.a. 17.78 Auto finance companies 5 11.98 9.44 10.73 12.24 12.23 12.19 12.26 1122..2244 1122..2299 1122..2299 6 Used car 17.59 15.95 14.60 14.90 14.97 14.56 14.75 14.77 14.82 14.81 OTHER TERMS4 Maturity (months) 7 51.5 50.0 53.5 55.4 55.5 5555..55 55.9 5566..00 5566..22 5566..22 8 Used car 41.4 42.6 45.2 45.3 45.3 47.2 46.8 46.9 46.9 46.9 Loan-to-value ratio 9 New car 91 91 93 94 93 93 94 94 9944 9944 10 Used car 94 97 98 99 99 98 99 98 98 99 Amount financed (dollars) II New car 9,915 10,665 11,203 11,630 11,645 11,534 11,447 11,493 1111,,555533 1111,,662244 12 Used car 6,089 6,555 7,420 7,646 7,718 7,612 7,619 7,587 7,662 7,778 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 Nonfinancial Statistics • September 1988 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS X Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1984 1985 1986 1987 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998833 11998844 11998855 11998866 11998877 H2 HI H2 HI H2 HI H2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 550.2 753.9 854.8 831.7 672.2 790.4 722.7 986.8 679.1 984.4 623.1 721.4 By sector and instrument 2 U.S. government 186.6 198.8 223.6 215.0 143.8 207.2 204.8 242.5 207.2 222.8 152.8 134.9 3 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 1.5 -.1 -.1 -.1 -.1 .9 1.0 2.0 5 Private domestic nonfinancial sectors 363.6 555.1 631.1 616.7 528.4 583.3 518.0 744.3 471.8 761.6 470.3 586.4 6 Debt capital instruments 253.4 313.6 447.8 452.7 435.6 342.5 350.4 545.2 365.6 539.8 443.6 427.7 7 Tax-exempt obligations 53.7 50.4 136.4 30.8 34.5 67.0 67.0 205.8 -15.6 77.2 34.9 34.1 8 Corporate bonds 16.0 46.1 73.8 121.3 99.4 69.8 62.2 85.3 135.3 107.3 97.3 101.6 9 Mortgages 183.6 217.1 237.7 300.6 301.7 205.7 221.2 254.2 245.9 355.4 311.4 291.9 10 Home mortgages 117.5 129.7 151.9 201.2 211.4 119.9 139.2 164.7 163.9 238.6 221.0 201.9 11 Multifamily residential 14.2 25.1 29.2 33.1 25.0 22.4 25.0 33.4 31.3 34.9 30.0 20.1 12 Commercial 49.3 63.2 62.5 74.6 71.5 63.8 59.5 65.5 59.7 89.6 69.8 73.1 13 Farm 2.6 -.9 -6.0 -8.4 -6.3 -.4 -2.5 -9.5 -9.0 -7.7 -9.3 -3.2 14 Other debt instruments 110.2 241.5 183.3 164.0 92.8 240.8 167.5 199.1 106.3 221.7 26.7 158.8 15 Consumer credit 56.6 90.4 94.6 65.8 41.8 86.2 95.3 93.9 71.0 60.6 28.3 55.2 16 Bank loans n.e.c 23.2 67.1 38.6 66.5 9.3 63.0 21.0 56.2 12.2 120.8 -32.6 51.2 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 .1 18 Other 31.3 62.2 35.5 41.0 39.4 74.7 36.8 34.2 36.2 45.8 26.6 52.2 19 By borrowing sector 363.6 555.1 631.1 616.7 528.4 583.3 518.0 744.3 471.8 761.6 470.3 586.4 20 State and local governments 34.0 27.4 91.8 44.3 33.9 38.6 56.3 127.2 4.3 84.3 33.2 34.7 21 Households 188.2 234.6 293.4 281.1 248.9 234.2 259.8 327.1 233.0 329.3 231.1 266.8 22 Farm 4.1 -.1 -13.9 -15.1 -11.7 .4 -7.0 -20.8 -16.9 -13.3 -17.8 -5.6 23 Nonfarm noncorporate 77.0 97.0 93.1 116.2 103.3 92.2 85.7 100.5 96.7 135.6 104.5 102.1 24 Corporate 60.3 196.0 166.7 190.2 153.9 217.8 123.2 210.3 154.7 225.8 119.4 188.5 25 Foreign net borrowing in United States 17.3 8.3 1.2 9.0 3.8 -19.4 -5.8 8.2 21.5 -3.5 -7.4 15.0 26 Bonds 3.1 3.8 3.8 2.6 6.3 6.3 5.5 2.1 6.2 -1.1 -1.7 14.3 27 Bank loans n.e.c 3.6 -6.6 -2.8 -1.0 -3.6 -11.9 -5.8 .1 1.5 -3.5 -3.2 -4.1 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 -1.0 -9.6 -8.2 -3.7 -5.3 -2.7 2.7 -4.7 30 Total domestic plus foreign 567.5 762.2 856.0 840.7 676.0 771.0 716.9 995.0 700.5 980.9 615.7 736.3 Financial sectors 31 Total net borrowing by financial sectors 99.3 151.9 199.0 295.3 284.2 150.7 175.1 222.8 242.3 348.2 319.3 249.7 By instrument 32 U.S. government related 67.8 74.9 101.5 178.1 168.3 77.3 96.8 106.3 136.1 220.1 180.5 156.5 33 Sponsored credit agency securities 1.4 30.4 20.6 15.2 30.2 31.5 26.6 14.6 8.7 21.7 8.1 52.3 34 Mortgage pool securities 66.4 44.4 79.9 163.3 138.8 45.8 70.3 89.5 126.5 200.0 174.0 104.1 35 1.1 -.4 -.8 2.2 .8 -1.5 -1.5 36 Private financial sectors 31.5 77.0 97.4 117.2 116.0 73.5 78.3 116.5 106.2 128.1 138.7 93.2 37 Corporate bonds 17.4 36.2 48.6 69.0 65.8 41.5 48.9 48.3 72.1 66.0 80.2 51.4 38 Mortgages * .4 .1 .1 .3 .4 * .1 .6 -.5 .2 .3 39 Bank loans n.e.c -.1 .7 2.6 4.0 -3.3 .7 2.3 2.9 4.0 4.0 -4.7 -1.9 40 Open market paper 21.3 24.1 32.0 24.2 28.8 16.0 14.6 49.4 15.1 33.4 49.4 8.2 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 13.6 35.2 By sector 42 Sponsored credit agencies 1.4 30.4 21.7 14.9 29.5 31.5 26.6 16.8 9.5 20.2 6.6 52.3 43 Mortgage pools 66.4 44.4 79.9 163.3 138.8 45.8 70.3 89.5 126.5 200.0 174.0 104.1 44 Private financial sectors 31.5 77.0 97.4 117.2 116.0 73.5 78.3 116.5 106.2 128.1 138.7 93.2 45 Commercial banks 5.0 7.3 -4.9 -3.6 7.1 -5.3 -4.7 -5.0 -2.7 -4.6 14.1 .1 46 Bank affiliates 12.1 15.6 14.5 4.6 3.0 10.8 10.2 18.9 -1.7 10.9 11.5 -5.6 47 Savings and loan associations -2.1 22.7 22.3 29.8 35.7 23.3 14.2 30.4 25.5 34.0 27.7 43.8 48 Finance companies 12.9 18.9 53.9 49.7 30.8 29.6 49.7 58.1 53.1 46.3 32.9 28.7 49 REITs -.1 .1 -.7 -.3 1.4 .1 -.6 -.8 .6 -1.3 * 2.9 50 CMO Issuers 3.7 12.4 12.2 37.1 38.0 15.0 9.5 14.9 31.4 42.8 52.6 23.3 All sectors 51 Total net borrowing 666.8 914.1 1,054.9 1,136.0 960.2 921.8 892.1 1,217.8 942.8 1,329.1 935.0 986.0 52 U.S. government securities . 254.4 273.8 324.2 393.5 312.9 284.5 301.7 346.6 342.5 444.5 334.8 291.4 53 State and local obligations .. 53.7 50.4 136.4 30.8 34.5 67.0 67.0 205.8 -15.6 77.2 34.9 34.1 54 Corporate and foreign bonds 36.5 86.1 126.1 192.9 171.5 117.6 116.6 135.7 213.6 172.1 175.8 167.3 55 Mortgages 183.6 217.4 237.7 300.7 301.9 206.0 221.2 254.2 246.5 354.9 311.6 292.2 56 Consumer credit 56.6 90.4 94.6 65.8 41.8 86.2 95.3 93.9 71.0 60.6 28.3 55.2 57 Bank loans n.e.c 26.7 61.1 38.3 69.5 2.4 51.8 17.5 59.2 17.7 121.3 -40.5 45.3 58 Open market paper 26.9 52.0 52.8 26.4 33.2 28.6 31.8 73.7 21.0 31.7 48.6 17.8 59 Other loans 28.4 82.9 44.8 56.5 62.1 80.0 41.1 48.6 46.1 66.8 41.5 82.7 External corporate equity funds raised in United States 60 Total new share issues 61.8 -36.4 19.9 91.6 1.6 -24.9 3.0 36.7 100.8 82.3 84.5 -81.3 61 Mutual funds 27.2 29.3 85.7 163.3 75.4 32.2 64.2 107.1 155.5 171.1 147.2 3.6 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 -84.9 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 5.4 8.8 11.2 12.8 7.5 9.1 5.4 5.3 65 Foreign shares purchased in United States 3.7 .9 3.7 .7 -2.7 3.5 3.1 4.3 6.6 -5.1 1.9 -7.2 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 550.2 753.9 854.8 831.7 672.2 790.4 722.7 986.8 679.1 984.4 623.1 772211..44 By public agencies and foreign 7 Total net advances 114.0 157.6 202.3 319.7 231.6 118822..55 195.8 208.7 226644..77 337744..66 223377..00 222266..33 3 U.S. government securities 26.3 39.3 47.1 84.8 58.2 51.0 50.3 43.9 74.0 95.6 45.4 71.0 4 Residential mortgages 76.1 56.5 94.6 160.3 135.6 57.4 88.6 100.7 123.7 196.9 166.8 104.6 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 13.4 59.2 44.4 48.2 52.6 56.9 11.1 15.4 Total advanced, by sector 7 U.S. government 9.7 17.1 16.8 9.5 -13.7 26.6 25.1 8.4 10.8 8.2 -16.6 --1111..22 8 Sponsored credit agencies 69.8 74.3 101.5 177.3 166.2 75.2 96.4 106.7 128.2 226.5 168.1 164.7 9 Monetary authorities 10.9 8.4 21.6 30.2 10.0 4.8 27.5 15.8 13.2 47.2 10.8 9.1 10 Foreign 23.7 57.9 62.3 102.6 69.2 75.9 46.8 77.8 112.5 92.7 74.6 63.8 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 67.8 74.9 101.5 178.1 168.3 77.3 96.8 106.3 113366..11 222200..11 118800..55 115566..55 12 Foreign 17.3 8.3 1.2 9.0 3.8 -19.4 -5.8 8.2 21.5 -3.5 -7.4 15.0 Private domestic funds advanced 13 Total net advances 521.3 679.5 755.2 699.2 612.6 665.7 618.0 892.5 557711..99 882266..44 555599..33 666666..55 14 U.S. government securities 228.1 234.5 277.0 308.7 254.7 233.5 251.3 302.7 268.6 348.9 289.5 220.4 15 State and local obligations 53.7 50.4 136.4 30.8 34.5 67.0 67.0 205.8 -15.6 77.2 34.9 34.1 16 Corporate and foreign bonds 14.5 35.1 40.8 83.4 85.5 53.0 39.7 42.0 100.2 66.6 70.3 100.7 17 Residential mortgages 55.0 98.2 86.4 74.0 100.8 84.8 75.5 97.4 71.5 76.5 84.1 117.3 18 Other mortgages and loans 162.4 276.9 228.8 222.1 161.6 242.3 197.0 260.6 161.7 282.4 94.1 229.2 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 70 Credit market funds advanced by private financial institutions 395.8 559.8 579.5 726.9 558.7 532.1 483.8 675.2 638.5 815.3 557788..55 553388..99 71 Commercial banking 144.3 168.9 186.3 194.7 136.6 145.5 143.3 229.4 117.2 272.3 99.1 173.6 ?? Savings institutions 135.6 150.2 83.0 105.5 135.8 133.5 54.5 111.4 94.5 116.6 106.4 165.1 73 Insurance and pension funds 100.1 121.8 156.0 176.7 177.2 95.3 139.4 172.5 169.0 184.4 210.2 144.2 24 Other finance 15.8 118.9 154.2 249.9 109.4 157.8 146.5 161.9 257.9 241.9 162.8 56.0 75 Sources of funds 395.8 559.8 579.5 726.9 558.7 532.1 483.8 675.2 638.5 815.3 578.5 538.9 76 Private domestic deposits and RPs 215.4 316.9 213.2 271.4 163.8 353.5 191.4 235.0 252.2 290.6 60.0 265.4 27 Credit market borrowing 31.5 77.0 97.4 117.2 116.0 73.5 78.3 116.5 106.2 128.1 138.7 93.2 78 Other sources 148.9 165.9 268.9 338.3 279.0 105.1 214.1 323.6 280.1 396.5 379.8 180.3 79 Foreign funds 14.6 8.8 19.7 12.9 44.0 1.7 10.8 28.6 11.9 14.0 24.5 63.5 30 Treasury balances -5.3 4.0 10.3 1.7 -5.8 10.8 13.9 6.6 -4.2 7.6 4.3 -16.0 31 Insurance and pension reserves 109.7 118.6 141.0 152.8 147.8 74.6 118.6 163.4 136.6 168.9 175.2 120.3 32 Other, net 30.0 34.5 98.1 170.9 93.0 18.0 71.4 124.7 135.8 206.1 175.7 12.5 Private domestic nonfinancial investors 33 Direct lending in credit markets 157.0 196.7 273.2 89.4 169.9 207.1 212.5 333.9 39.7 139.2 119.5 220.8 34 U.S. government securities 99.3 123.6 145.3 47.1 69.4 84.3 156.2 134.5 42.2 51.9 72.9 66.3 35 State and local obligations 40.3 30.4 47.6 -5.4 58.7 50.4 14.8 80.4 -67.6 56.8 25.6 91.8 36 Corporate and foreign bonds -11.6 5.2 11.8 34.7 23.0 36.9 15.4 8.2 68.8 .7 -8.0 53.9 37 Open market paper 12.0 9.3 43.9 -4.8 6.8 3.0 3.5 84.2 -17.3 7.7 19.0 -5.5 38 Other 17.0 28.1 24.6 17.9 12.1 32.5 22.6 26.6 13.6 22.1 9.9 14.3 19 Deposits and currency 232.8 320.4 223.5 291.8 180.6 354.0 198.3 248.7 261.9 321.6 45.1 313.9 40 Currency 14.3 8.6 12.4 14.4 19.0 3.6 15.9 8.8 10.7 18.2 9.6 28.4 41 Checkable deposits 28.8 28.0 41.5 100.1 -.2 29.9 13.8 69.2 82.5 117.8 -21.6 21.3 4? Small time and savings accounts 215.4 150.7 138.6 120.8 78.8 169.9 162.1 115.1 112.6 129.0 51.7 105.9 43 Money market fund shares -39.0 49.0 8.9 43.8 27.2 73.4 10.6 7.1 46.9 40.6 3.1 51.3 44 Large time deposits -8.3 84.3 7.6 -11.6 31.0 79.1 -7.3 22.5 .2 -23.3 4.0 55.9 45 Security RPs 18.5 5.0 16.6 18.3 26.9 1.2 12.2 21.1 10.0 26.5 22.7 31.0 46 Deposits in foreign countries 3.1 -5.1 -2.1 5.9 -2.2 -3.1 -9.0 4.9 -.9 12.8 -24.5 20.1 47 Total of credit market instruments, deposits, and currency 389.9 517.1 496.7 381.2 350.5 561.1 410.7 582.6 301.6 460.9 164.6 534.7 48 Public holdings as percent of total 20.1 20.7 23.6 38.0 34.3 23.7 27.3 21.0 37.8 38.2 38.5 30.7 49 Private financial intermediation (in percent) 75.9 82.4 76.7 104.0 91.2 79.9 78.3 75.6 111.6 98.7 103.4 80.8 50 Total foreign funds 38.2 66.7 82.0 115.5 113.2 77.6 57.7 106.4 124.4 106.7 99.2 127.2 MEMO: Corporate equities not included above SI Total net issues 61.8 -36.4 19.9 91.6 1.6 -24.9 3.0 36.7 110000..88 8822..33 8844..55 --8811..33 5? Mutual fund shares 27.2 29.3 85.7 163.3 75.4 32.2 64.2 107.1 155.5 171.1 147.2 3.6 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 -84.9 54 Acquisitions by financial institutions 51.1 19.7 43.4 50.6 43.0 39.7 59.5 27.3 46.5 54.6 67.4 18.5 55 10.7 -56.1 -22.9 41.0 -41.4 -64.6 -55.8 9.5 54.3 27.7 17.1 -99.9 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 • September 1988 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures' 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1987 1988 MMeeaassuurree 11998855 11998866 11998877 Oct. Nov. Dec. Jan. Feb. Mar.' Apr.' May' June 1 Industrial production 123.7 12S.1 129.8 132.5 133.2 133.9 134.4 134.4 134.7 135.4 136.1 136.6 Market groupings 2 Products, total 130.6 133.3 138.3 140.9 141.0 141.3 142.7 143.4 143.6 144.0 144.6 145.0 3 Final, total 131.0 132.5 136.8 139.3 139.2 139.8 141.1 141.6 141.8 142.4 143.4 143.8 4 Consumer goods 119.8 124.0 127.7 129.0 129.4 129.8 131.2 131.3 131.2 131.8 132.5 132.7 5 Equipment 145.8 143.6 148.8 153.0 152.2 153.1 154.3 155.3 155.9 156.6 157.7 158.5 6 Intermediate 129.3 136.2 143.5 146.1 147.3 146.5 148.1 149.4 149.9 149.2 149.0 149.3 7 Materials 114.3 113.8 118.2 121.2 122.5 123.7 123.0 122.1 122.5 123.6 124.5 125.2 Industry groupings 8 Manufacturing 126.4 129.1 134.6 137.3 137.9 138.9 139.4 139.5 140.0 140.7 141.6 141.9 Capacity utilization (percent)2 9 Manufacturing 80.1 79.8 81.0 82.0 82.2 82.5 82.7 82.6 82.7 82.9 83.2 83.2 10 Industrial materials industries 80.2 78.5 80.5 82.1 82.9 83.7 83.0 82.3 82.4 83.0 83.4 83.7 11 Construction contracts (1982 = 100)3 150.0 158.0 161.0 164.0 157.0 157.0 145.0 159.0 154.0 144.0 157.0 165.0 12 Nonagricultural employment, total4 118.3 120.7 124.1 125.3 125.7 126.1 126.4 127.0 127.3 127.6 127.9 128.4 13 Goods-producing, total 102.1 100.9 101.8 102.8 103.2 103.5 103.4 103.8 104.1 104.5 104.6 105.0 14 Manufacturing, total 97.8 96.3 96.8 97.7 98.0 98.3 98.4 98.5 98.6 98.8 99.0 99.2 15 Manufacturing, production-worker — 92.6 91.2 92.1 92.8 93.2 93.5 93.5 93.7 93.7 93.9 94.1 94.4 16 Service-producing 125.0 129.0 133.4 134.8 135.1 135.6 136.1 136.7 137.1 137.4 137.7 138.1 17 Personal income, total 206.9' 219.7' 235.1' 242.4' 241.6' 245.<R 244.C 245.5' 248.0 248.6 249.7 251.4 18 Wages and salary disbursements 198.8' 210.7' 226.2' 231.7' 233.3' 236.8' 235.7' 237.3' 238.9 240.9 242.2 244.0 19 Manufacturing 172.8' 177.4' 183.8' 187.4' 188.3' 188.2' 189.4' 190.2' 193.6 192.8 193.7 195.1 20 Disposable personal income9 205.8' 218.9' 232.7' 240.1' 239.C 242.1' 242.4' 244.8' 247.0 243.0 249.0 251.1 21 Retail sales8 189.6 199.5 209.3 211.2 211.9 214.2 214.5 216.7 220.3 219.4 219.9 221.1 Prices7 22 Consumer (1982-84 = 100) 107.6 109.6 113.6 115.3 115.4 115.4 115.7 116.0 116.5 117.1 117.5 118.0 23 Producer finished goods (1982 = 100) ... 104.7 103.2 105.4 106.2 106.3 105.8 106.3 106.1' 106.2 106.9 107.5 107.9 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 My 1983. 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 7. 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 Com- NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6, merce, and other sources. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 3. Index of dollar value of total construction contracts, including residential, of Current Business. nonresidential and heavy engineering, from McGraw-Hill Information Systems Figures for industrial production for the last two months are preliminary and Company, F. W. Dodge Division. estimated, respectively. 4. Based on data in Employment and Earnings (U.S. Department of Labor). 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 Nov. Dec. Jan. Feb. Mar. Apr/ May June HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 180,440 182,822 185,010 185,737 185,882 186,083 186,219 186,361 186,478 186,600 186,755 2 Labor force (including Armed Forces)1 117,695 120,078 122,122 122,861 122,984 123,436 123,598 123,153 123,569 123,204 123,665 3 Civilian labor force 115,461 117,834 119,865 120,594 120,722 121,175 121,348 120,903 121,323 120,978 121,472 4 Nonagricultural industries 103,971 106,434 109,232 110,332 110,529 110,836 111,182 110,899 111,485 111,160 111,933 5 Agriculture 3,179 3,163 3,208 3,172 3,215 3,293 3,228 3,204 3,228 3,035 3,085 Unemployment 6 Number 8,312 8,237 7,425 7,090 6,978 7,046 6,938 6,801 6,610 6,783 6,455 7 Rate (percent of civilian labor force) 7.2 7.0 6.2 5.9 5.8 5.8 5.7 5.6 5.4 5.6 5.3 8 Not in labor force 62,745 62,744 62,888 62,876 62,898 62,647 62,621 63,208 62,909 63,3% 63,090 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 97,519 99,525 102,310 103,678 104,001 104,262 104,729 105,020 105,281 105,502r 105,848 10 Manufacturing 19,260 18,965 19,065 19,297 19,348 19,369 19,390 19,405 19,460 19,489' 19,534 11 Mining 927 777 721 736 735 728 731 733 737 737 741 12 Contract construction 4,673 4,816 4,998 5,090 5,118 5,083 5,150 5,192 5,238 5,238r 5,294 13 Transportation and public utilities 5,238 5,255 5,385 5,466 5,481 5,499 5,513 5,530 5,543 5,558' 5,581 14 Trade 23,073 23,683 24,381 24,719 24,768 24,937 25,080 25,111 25,182 25,24<y 25,342 15 Finance 5,955 6,283 6,549 6,608 6,619 6,633 6,636 6,651 6,650 6,65or 6,665 16 Service 22,000 23,053 24,196 24,604 24,725 24,795 24,975 25,078 25,163 25,232r 25,390 17 Government 16,394 16,693 17,015 17,158 17,207 17,218 17,254 17,320 17,308 17,358' 17,301 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 • September 1988 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1987 1988 1987 1988 1987 1988 SSeerriieess Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 130.9 133.0 134.5 136.0 161.3 162.2 163.1 164.2 81.2 82.1 82.4 82.9 2 Mining 100.6 103.2 102.5 104.1 127.0 128.4 127.7 127.0 78.0 81.2 80.2 82.0 3 Utilities 111.6 112.5 115.1 112.4 138.8 139.4 139.8 140.1 80.5 80.6 82.1 80.2 4 Manufacturing 135.7 137.9 139.6 141.4 166.7 167.7 168.9 170.2 81.4 82.3 82.7 83.1 5 Primary processing 119.2 122.1 122.7 124.0 139.8 140.6 141.6 142.7 85.3 86.9 86.9 86.9 6 Advanced processing... 145.8 147.5 149.6 151.8 182.9 184.1 185.6 186.7 79.7 80.1 80.7 81.4 7 Materials 119.1 121.9 122.6 124.4 147.2 147.8 148.5 149.3 81.0 82.9 82.5 83.4 8 Durable goods 125.5 129.6 131.3 134.1 163.9 164.7 165.7 166.8 76.7 79.1 79.4 80.4 9 Metal materials 83.6 91.1 86.6 88.4 109.4 108.8 108.8 109.1 76.5 84.0 79.2 81.1 10 Nondurable goods 128.2 129.3 130.3 131.7 144.7 145.6 146.8 148.3 88.6 89.3 88.1 88.8 11 Textile, paper, and chemical ... 130.5 132.3 133.1 133.9 144.4 145.4 146.7 148.5 90.4 91.5 89.6 90.2 1? Paner 144.5 145.1 99.6 99.2 98.8 130.7 150.9 86.3 89.1 87.0 14 Energy materials 100.0 101.8 100.9 101.2 120.1 119.9 119.7 119.4 83.3 85.2 84.2 84.7 Previous cycle2 Latest cycle3 1987 1987 1988 High Low High Low June Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 80.3 81.9 82.1 82.4 82.5 82.4 82.4 82.7 82.9 85.1 16 Mining 92.8 87.8 95.2 76.9 76.6 80.6 81.5 81.5 80.7 79.5 80.1 81.8 81.3 82.1 17 Utilities 95.6 82.9 88.5 78.0 79.0 80.5 81.2 80.4 82.4 78.3 80.5 80.6 82.1 81.8 18 Manufacturing 87.7 69.9 86.5 68.0 80.8 82.0 82.2 82.5 82.7 82.6 82.7 82.9 83.1 83.2 19 Primary processing 91.9 68.3 89.1 65.1 84.0 86.2 87.0 87.8 87.1 86.6 86.8 87.0 87.1 86.8 20 Advanced processing.. 86.0 71.1 85.1 69.5 79.2 80.1 80.0 80.1 80.7 80.7 80.8 81.1 81.3 81.6 21 Materials 92.0 70.5 89.1 68.5 79.8 82.1 82.9 83.7 83.0 82.3 82.3 83.1 83.4 83.7 22 Durable goods 91.8 64.4 89.8 60.9 75.9 78.3 79.0 80.2 79.7 79.3 79.1 79.9 80.6 80.8 23 Metal materials 99.2 67.1 93.6 45.7 71.5 82.4 83.3 87.6 80.1 79.3 78.2 79.2 81.1 82.0 24 Nondurable goods — 91.1 66.7 88.1 70.7 86.1 88.2 89.0 90.5 88.8 87.3 88.3 88.6 88.7 88.7 25 Textile, paper, and chemical 92.8 64.8 89.4 68.8 87.1 90.4 91.0 92.7 90.8 88.5 89.9 90.0 90.0 89.9 98.4 70.6 97.3 79.9 96.3 97.4 98.7 101.6 100.6 97.8 98.0 98.1 98.7r 92.5 64.4 87.9 63.5 83.1 88.0 88.6 90.8 87.8 85.7 87.4 87.4 88.3r 28 Energy materials 94.6 86.9 94.0 82.3 82.8 84.9 85.7 85.1 84.7 84.1 83.8 84.8 84.6 85.7 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- avg. tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. May" June' Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 129.8 129.1 130.6 131.2 131.0 132.5 133.2 133.9 134.4 134.4 134.7 135.4 136.1 136.6 7 Products 57.72 138.3 137.8 139.5 139.9 139.4 140.9 141.0 141.3 142.7 143.4 143.6 144.0 144.6 145.0 Final products 44.77 136.8 136.2 137.9 138.4 137.8 139.3 139.2 139.8 141.1 141.6 141.8 142.4 143.4 143.8 4 Consumer goods 25.52 127.7 127.2 128.9 129.4 127.7 129.0 129.4 129.8 131.2 131.3 131.2 131.8 132.5 132.7 5 Equipment 19.25 148.8 148.1 149.7 150.2 151.2 153.0 152.2 153.1 154.3 155.3 155.9 156.6 157.7 158.5 6 Intermediate products 12.94 143.4 143.3 145.0 145.3 144.9 146.1 147.3 146.5 148.1 149.4 149.9 149.2 149.0 149.3 7 Materials 42.28 118.2 117.2 118.5 119.4 119.7 121.2 122.5 123.7 123.0 122.1 122.5 123.6 124.5 125.2 Consumer goods 8 Durable consumer goods 6.89 120.2 117.4 120.4 121.2 118.6 124.3 123.9 120.3 121.7 120.6 120.4 123.2 112255..44 112255..55 9 Automotive products 2.98 118.5 114.9 117.5 118.0 114.2 124.3 121.3 115.4 118.7 117.6 120.6 121.9 126.6 126.3 10 Autos and trucks 1.79 115.1 107.9 112.3 112.4 107.2 122.2 118.7 110.2 112.8 111.8 116.4 118.0 126.9 125.3 11 Autos, consumer 1.16 90.7 87.4 86.4 76.8 79.1 94.7 91.9 83.7 77.5 79.5 86.3 91.0 98.9 99.0 1? Trucks, consumer .63 160.5 146.0 160.4 178.4 159.4 173.2 168.5 159.5 178.3 171.6 172.2 168.2 178.9 N Auto parts and allied goods 1.19 123.5 125.4 125.3 126.6 124.8 127.5 125.2 123.3 127.7 126.4 126.9 127.8 126.2 127.9 14 Home goods 3.91 121.6 119.3 122.5 123.6 121.9 124.3 125.8 123.9 124.0 122.8 120.2 124.1 124.5 124.8 15 Appliances, A/C and TV 1.24 141.5 133.4 141.7 147.1 141.8 145.7 150.1 142.7 142.2 140.6 132.8 141.9 141.8 142.9 16 Appliances and TV 1.19 142.1 133.4 142.6 145.5 140.6 146.1 150.5 142.6 140.9 141.4 132.7 142.2 142.6 17 Carpeting and furniture .96 130.7 132.3 134.1 132.0 131.6 132.9 133.5 133.9 134.2 132.3 133.1 133.8 136.2 18 Miscellaneous home goods 1.71 102.0 101.8 102.2 102.0 102.2 104.1 103.9 104.8 105.2 104.7 103.9 105.8 105.4 19 Nondurable consumer goods 18.63 130.5 130.9 132.1 132.5 131.0 130.8 131.5 133.3 134.7 135.3 135.1 134.9 135.1 135.3 70 Consumer staples 15.29 137.3 137.6 138.9 139.2 137.8 137.4 138.3 140.7 142.3 142.9 142.5 142.2 142.6 142.8 71 Consumer foods and tobacco 7.80 136.2 136.0 137.2 137.4 137.0 137.5 137.3 139.2 140.3 140.8 139.4 137.7 138.9 7? Nonfood staples 7.49 138.5 139.2 140.6 141.2 138.6 137.2 139.4 142.2 144.3 145.0 145.7 146.9 146.5 146.8 73 Consumer chemical products 2.75 162.9 164.4 165.7 167.4 163.6 160.0 163.5 167.7 170.7 171.7 172.7 174.2 176.0 74 Consumer paper products 1.88 151.8 153.1 153.8 153.9 153.2 151.8 152.8 157.0 157.1 157.5 159.1 161.9 161.3 75 Consumer energy 2.86 106.3 105.9 108.0 107.7 105.0 105.8 107.4 108.0 110.6 111.3 111.0 110.9 108.6 76 Consumer fuel 1.44 93.1 91.9 92.7 91.4 91.6 92.4 93.2 95.4 95.4 97.0 97.9 98.9 94.0 27 Residential utilities 1.42 119.8 120.2 123.6 124.3 118.7 119.4 121.8 120.7 126.0 125.8 124.5 123.2 Equipment 78 Business and defense equipment 18.01 153.6 153.2 154.4 154.5 155.2 157.2 156.6 157.8 159.2 160.3 160.8 161.5 116622..88 116633..55 79 Business equipment 14.34 144.5 144.2 145.6 145.6 146.3 148.7 148.3 149.8 151.2 152.4 153.3 154.6 156.5 157.3 30 Construction, mining, and farm 2.08 62.2 63.0 65.0 66.4 66.1 66.5 66.3 67.4 67.1 67.6 68.3 70.7 71.7 70.9 31 Manufacturing 3.27 117.9 117.2 120.4 120.9 122.0 120.5 120.6 122.2 125.4 124.9 127.0 128.4 129.2 129.8 37 Power 1.27 82.6 84.0 81.8 82.8 81.1 83.0 83.1 84.2 86.2 88.3 87.8 87.3 87.6 88.1 33 Commercial 5.22 226.5 226.7 227.9 227.7 229.1 232.4 232.1 235.5 238.0 240.3 239.9 241.0 243.9 245.1 34 Transit 2.49 108.4 105.4 106.1 104.7 105.1 112.5 111.2 109.1 106.5 108.2 111.1 112.5 115.6 117.0 35 Defense and space equipment 3.67 188.9 188.6 188.7 189.1 189.8 190.3 188.7 188.9 190.6 191.0 189.9 188.6 187.1 187.9 Intermediate products 36 Construction supplies 5.95 131.5 131.5 133.1 132.5 132.3 133.3 134.2 133.8 113366..88 113377..77 113377..33 113377..55 113377..33 113366..77 37 Business supplies 6.99 153.5 153.4 155.2 156.3 155.6 157.1 158.4 157.4 157.8 159.4 160.7 159.3 158.9 38 General business supplies 5.67 158.6 158.5 160.5 161.0 160.9 162.3 164.3 163.3 163.1 165.0 166.6 165.5 164.8 39 Commercial energy products 1.31 131.1 131.1 132.3 135.8 132.7 134.6 132.9 131.8 135.0 135.3 135.3 132.3 133.5 Materials 40 Durable goods materials 20.50 125.0 124.0 125.2 125.5 126.4 128.7 130.2 132.0 131.8 131.4 131.3 132.8 113344..66 113355..00 41 Durable consumer parts 4.92 100.9 99.2 98.5 99.6 99.0 102.3 103.1 104.6 104.7 104.4 103.5 106.3 109.7 110.1 47 Equipment parts 5.94 159.0 158.3 159.3 159.5 161.1 162.2 163.2 165.3 167.4 167.6 167.3 168.7 170.2 170.9 43 Durable materials n.e.c 9.64 116.4 115.5 117.7 117.9 118.9 121.6 123.6 125.5 123.7 123.0 123.4 124.2 125.4 125.6 44 Basic metal materials 4.64 86.7 83.6 86.6 90.4 91.3 95.3 96.5 100.0 92.9 91.4 90.5 91.5 94.6 94.9 45 Nondurable goods materials 10.09 125.8 124.1 127.6 128.3 128.6 128.2 129.6 132.5 129.9 128.1 130.1 131.3 132.0 131.9 46 Textile, paper, and chemical materials 7.53 127.6 125.1 129.6 130.6 131.2 131.0 132.3 135.6 132.7 129.9 132.4 133.7 134.0 134.0 47 Textile materials 1.52 111.7 111.9 117.8 116.7 116.0 113.0 112.7 113.6 112.6 110.2 112.7 113.0 111.3 48 Pulp and paper materials 1.55 141.0 139.0 145.4 145.0 143.3 142.0 144.4 149.0 148.0 144.4 144.8 145.8 147.2 49 Chemical materials 4.46 128.4 124.9 128.1 130.4 132.2 133.4 134.7 138.4 134.2 131.5 134.8 136.5 137.2 50 Miscellaneous nondurable materials ... 2.57 120.4 120.9 122.0 121.4 120.9 119.7 121.7 123.3 121.8 123.0 123.2 124.3 51 Energy materials 11.69 99.8 99.4 99.0 100.9 100.2 101.8 102.8 101.7 101.4 100.6 100.6 100.9 100.3 102.3 57 Primary energy 7.57 105.0 104.0 102.5 104.6 104.6 106.8 108.4 107.7 107.3 104.8 105.0 106.9 105.0 53 Converted fuel materials 4.12 90.3 91.0 92.5 94.1 92.2 92.7 92.6 90.7 90.6 93.0 92.6 90.0 91.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • September 1988 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1987 1988 1977 Groups c S o I d C e aa 1 vv 98 gg 7 .. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. MayP June* Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 104.3 103.0 103.7 105.4 105.4 106.8 107.9 107.3 107.8 106.8 106.7 107.1 106.6 108.1 2 Mining 9.83 100.7 99.2 99.2 100.9 101.9 103.6 104.6 104.6 103.3 101.5 102.7 104.8 103.4 104.0 3 Utilities 5.96 110.3 109.4 111.2 112.9 111.2 112.1 113.2 111.7 115.2 115.6 113.3 110.8 111.8 114.7 4 Manufacturing 84.21 134.6 134.0 135.6 135.9 135.7 137.3 137.9 138.9 139.4 139.5 140.0 140.7 141.6 141.9 5 Nondurable 35.11 136.7 136.9 138.5 138.8 138.6 138.1 139.6 141.3 141.4 141.1 141.7 142.1 142.1 142.2 6 Durable 49.10 133.1 132.0 133.5 133.8 133.7 136.8 136.7 137.3 137.9 138.4 138.8 139.7 141.2 141.7 Mining 7 Metal 10 .50 77.5 70.7 71.4 79.3 86.5 85.6 90.4 96.5 91.5 83.9 84.9 85.1 8 Coal 11.12 1.60 131.8 128.8 127.9 130.5 133.3 140.3 142.9 140.6 140.2 133.7 129.1 136.0 130.2 132.0 9 Oil and gas extraction 13 7.07 92.7 91.8 91.8 93.0 93.3 94.1 94.2 94.1 93.1 92.4 94.8 95.8 95.1 95.4 10 Stone and earth minerals 14 .66 128.2 128.5 130.7 130.3 130.0 131.0 134.1 135.6 132.1 134.3 136.9 141.0 140.9 Nondurable manufactures 11 Foods 20 7.96 137.7 137.7 138.5 138.8 139.5 138.0 138.9 140.1 141.2 141.9 141.1 139.6 140.4 12 Tobacco products 21 .62 103.4 107.0 106.8 110.4 101.7 103.7 106.5 110.5 105.8 107.0 107.2 107.6 13 Textile mill products 22 2.29 115.8 117.2 118.3 119.8 118.2 116.8 117.3 118.2 116.2 115.3 117.0 117.9 117.0 14 Apparel products 23 2.79 107.4 107.7 109.7 108.4 107.6 108.0 109.4 107.8 108.7 108.5 108.7 109.2 15 Paper and products 26 3.15 144.4 142.6 148.8 148.9 147.4 146.0 148.3 150.6 149.9 148.0 149.1 149.2 149.8 16 Printing and publishing 27 4.54 172.0 174.1 174.0 174.7 174.9 175.2 175.7 176.9 177.5 178.7 180.4 181.5 180.9 181.5 17 Chemicals and products 28 8.05 140.1 139.3 140.8 142.3 142.4 141.5 144.4 147.9 147.9 145.4 146.4 148.6 149.3 18 Petroleum products 29 2.40 93.5 92.3 94.1 92.9 93.5 94.6 93.3 96.1 96.3 95.9 98.4 98.4 95.2 94.2 19 Rubber and plastic products 30 2.80 163.6 165.4 167.2 164.8 165.2 166.7 169.9 170.6 170.5 172.3 172.2 172.6 171.8 20 Leather and products 31 .53 60.0 60.8 59.2 61.3 60.7 59.6 60.7 57.5 58.3 59.7 59.5 58.0 57.0 Durable manufactures 21 Lumber and products 24 2.30 130.3 131.1 132.8 131.1 126.9 129.8 134.0 133.6 136.3 139.0 137.8 137.8 137.7 22 Furniture and fixtures 25 1.27 152.8 153.9 156.2 155.2 155.9 156.0 158.5 159.4 158.0 158.3 159.4 159.7 160.2 23 Clay, glass, stone products 32 2.72 119.1 117.9 118.8 116.5 118.6 118.9 120.5 120.1 120.4 121.6 122.5 121.4 121.7 24 Primary metals 33 5.33 81.5 78.8 81.4 85.1 84.5 90.6 90.2 90.6 86.5 86.4 85.1 85.3 89.1 89.0 25 Iron and steel 331.2 3.49 70.8 68.3 70.9 76.0 74.6 82.0 79.7 81.9 77.8 77.4 74.2 74.5 78.7 26 Fabricated metal products 34 6.46 111.0 111.1 111.1 110.1 111.1 113.5 113.6 115.8 117.1 117.6 118.8 118.9 119.7 120.4 27 Nonelectrical machinery 35 9.54 152.7 151.8 155.3 154.3 156.6 158.0 157.2 161.0 162.9 163.6 164.6 166.3 168.7 169.5 28 Electrical machinery 36 7.15 172.3 170.5 172.5 174.3 173.4 175.5 175.6 175.9 177.4 177.8 176.6 178.9 179.2 180.4 29 Transportation equipment 37 9.13 129.2 126.5 127.6 128.1 125.5 132.0 130.4 128.1 128.6 128.4 130.0 130.4 133.2 133.2 30 Motor vehicles and parts 371 5.25 111.8 107.4 109.4 109.1 105.6 116.0 114.0 110.2 109.7 109.3 113.0 114.8 119.6 119.2 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 152.8 152.4 152.3 153.9 152.5 153.7 152.7 152.4 154.2 154.5 153.0 151.6 151.6 152.2 32 Instruments 38 2.66 143.9 144.5 143.8 146.3 145.6 146.7 147.8 145.5 148.2 149.2 149.7 151.6 151.0 151.5 33 Miscellaneous manufactures 39 1.46 102.6 101.2 100.5 102.2 102.1 104.6 104.5 105.6 105.0 104.4 105.1 105.8 106.1 Utilities 34 Electric 44..1177 112266..66 112288..88 113311..00 113322..00 112277..55 112266..88 112277..55 112255..66 113300..33 113300..77 112299..00 112277..44 112288..88 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,735.8 1,720.4 1,732.5 1,741.7 1,735.9 1,774.1 1,772.4 1,778.8 1,790.6 1,797.5 1,807.5 1,810.4 1,815.5 1,811.0 36 Final 405.7 1,333.8 1,320.1 1,326.6 1,334.9 1,330.3 1,360.9 1,359.9 1,359.4 1,375.5 1,381.1 1,385.9 1,393.2 1,397.5 1,395.2 37 Consumer goods. 272.7 866.0 855.1 863.2 866.4 856.9 876.6 879.8 881.2 893.6 893.7 893.2 897.8 898.1 892.4 38 Equipment 133.0 467.8 465.0 463.5 468.5 473.4 484.4 480.1 478.2 481.9 487.3 492.7 495.3 499.4 502.8 39 Intermediate 111.9 402.0 400.3 405.9 406.8 405.6 413.2 412.5 419.4 415.1 416.5 421.6 417.2 417.9 415.8 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr/ May Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,733 1,750 1,535 1,514 1,501 1,453 1,459 1,372 1,248 1,429 1,476 1,449 1,436 2 1-family 957 1,071 1,024 1,014 983 962 971 957 918 1,003 1,030 960 982 3 2-or-more-family 777 679 511 500 518 491 488 415 330 426 446 489 454 4 Started 1,742 1,805 1,621 1,583 1,679 1,538 1,661 1,399 1,382 1,519 1,529 1,584 1,384 5 1-family 1,072 1,179 1,146 1,109 1,211 1,105 1,129 1,035 1,016 1,102 1,172 1,093 9% 6 2-or-more-family 669 626 474 474 468 433 532 364 366 417 357 491 388 7 Under construction, end of period' . 1,063 1,074 987 1,044 1,046 1,044 1,042 1,016 1,008 983 999 1,001 990 8 1-family 539 583 591 621 627 627 625 618 614 596 617 623 612 9 2-or-more-family 524 490 397 423 419 417 417 398 394 387 382 378 378 10 Completed 1,703 1,756 1,669 1,633 1,591 1,565 1,571 1,624 1,550 1,452 1,598 1,635 1,458 11 1-family 1,072 1,120 1,123 1,069 1,100 1,114 1,088 1,104 1,098 1,043 1,094 1,054 1,086 12 2-or-more-family 631 637 546 564 491 451 483 520 452 409 504 581 372 13 Mobile homes shipped 284 244 233 234 240 234 222 227 200 208 212 213 216 Merchant builder activity in 1 -family units 14 Number sold • •. — 688 748 672 673 644 653 625 586 579 648 653 660 658 15 Number for sale, end of period1 — 350 361 370 361 361 360 362 365 368 359 374 371 375 Price (thousands of dollars)2 Median 16 Units sold 84.3 92.2 104.7 106.8 106.5 106.5 117.0 111.8 119.0 110.9 107.0 111.0 110.0 Average 17 Units sold 101.0 112.2 127.9 128.5 133.5 125.8 139.2 136.2 144.4 137.6 131.6 135.6 135.9 EXISTING UNITS (1-family) 18 Number sold 3,217 3,566 3,530 3,410 3,430 3,470 3,370 3,330 3,170 3,250 3,330 3,520 3,590 Price of units sold 2 1 0 9 A M v e e d r i ( a a th g n o e usands of dollars) 7 9 5 0 . . 4 6 8 9 0 8 . . 3 3 1 8 0 5 6 . . 6 2 1 8 0 6 7 . . 5 0 1 8 0 5 6 . . 5 9 1 8 0 4 6 . . 6 1 1 8 0 5 6 . . 0 6 1 8 0 5 7 . . 4 1 1 8 0 7 8 . . 4 7 1 8 1 8 0 . . 1 4 1 8 1 7 0 . . 9 7 1 8 0 7 8 . . 3 7 1 8 1 8 1 . . 8 9 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 355,735' 386,093R 398,848' 398,267' 405,375' 400,818' 407,066' 410,87c 395,264' 392,456 403,555 402,678 407,080 22 Private 291,665 314,651' 323,819' 325,664' 327,131' 325,915' 331,497' 331,641' 321.55C 317,754 324,257 323,624 328,180 23 Residential 158,475 187,147 194,772' 193,117' 194,801' 194,547' 195,599' 195,822' 195,168' 192,097 195,554 195,279 193,432 24 Nonresidential, total 133,190 127,504' 129,047' 132,547' 132,330' 131,368' 135,898' 135,sir 126,382' 125,657 128,703 128,345 134,748 Buildings 25 Industrial 15,769 13,747 13,707r 14,312' 15,332' 13,968' 14,512' 14.13C 13.48C 13,489 14,546 15,480 16,685 26 Commercial 59,629 56,762 55,448' 57,839' 56,531' 56,89c 59,374' 55,831' 53,555' 53,571 54,843 56,081 58,370 27 Other 12,619 13,216 15,464' 15,227' 15,497' 16,018' 16,692' 17,708' 16,954' 17,101 17,301 16,3% 16,922 28 Public utilities and other 45,173 43,779' 44,428' 45,169' 44,970' 44,492' 45,32c 48,15C 42,393' 41,496 42,013 40,388 42,771 29 Public 64,070r 71,437' 75,028' 72,603' 78,244' 74,903' 75,569' 79,228' 73,715' 74,702 79,298 79,054 78,900 30 Military 3,235' 3,868' 4,327' 4,158' 6,048' 4,010' 5,08c 4,879' 4,172' 3,280 4,216 4,384 4,277 31 Highway 21,540' 22,681' 22,758' 21,783' 23,145' 24,374' 23,439' 25,274' 24,808' 25,348 26,963 27,056 25,096 32 Conservation and development... 4,777' 4,646' 5,162' 5,137' 5,023' 5,144' 4,871' 5,759' 4,038' 4,535 4,899 4,443 4,671 33 Other 34,518' 40,242' 42,781' 41,525' 44,028' 41,375' 42,179' 43,316' 40,697' 41,539 43,220 43,171 44,856 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 • September 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 JJJuuunnneee 1987 1988 1988 111999888888 11998877 11998888 (((111999888222 JJuunnee JJuunnee === 111000000)))''' Sept. Dec. Mar. June Feb/ Mar/ Apr. May June CONSUMER PRICES2 1 AU items 3.7 4.0 3.9 3.2 4.2 4.5 .2 .5 .4 .3 .3 118.0 2 Food 5.3 3.3 2.1 2.8 1.4 7.1 -.3 .3 .7 .4 .6 117.6 3 Energy items .0 .3 6.0 -3.9 -4.9 4.2 -.6 .0 .8 .5 -.2 91.0 4 All items less food and energy 4.1 4.5 3.8 4.4 5.4 4.3 .2 .6 .4 .2 .4 123.0 5 Commodities 3.1 3.6 2.9 2.5 4.7 3.9 .1 .7 .6 .2 .2 115.4 6 Services 4.6 4.9 4.3 5.0 5.9 4.5 .4 .5 .2 .4 .5 127.4 PRODUCER PRICES 7 Finished goods 2.3 2.3 3.8 -1.9 2.3 5.0 -.2 .5 .4 .5 .4 107.9 8 Consumer foods 4.2 1.7 -1.8 -5.7 5.6 9.8 -1.1 .7 .4 .9 1.1 112.5 9 Consumer energy -4.1 -2.7 16.5 -9.6 -19.6 6.2 -1.0 .9 3.1 .2 -1.6 60.8 10 Other consumer goods 2.6 3.7 4.6 1.7 5.3 2.8 .3 .3 .0 .3 .3 117.9 11 Capital equipment 1.6 2.5 4.0 -.7 3.2 3.6 .2 .2 .2 .4 .4 114.2 12 Intermediate materials3 2.6 5.4 5.6 4.3 3.9 7.8 .2 .4 .8 .6 .6 107.1 13 Excluding energy 2.7 6.9 5.3 7.2 7.8 7.3 .2 .5 .7 .5 .5 114.9 Crude materials 14 Foods 8.7 8.7 -4.8 -4.8 16.7 31.5 2.2 .6 .4 2.4 4.2 108.4 15 Energy 7.4 -6.5 5.9 -15.2 -23.6 11.5 -.6 -2.3 2.5 1.3 -1.0 70.7 16 Other 8.1 15.4 39.4 18.0 13.8 -5.3 1.2 .6 .2 -1.7 .2 131.0 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'' Q2 Q3 Q4 Ql' Q2 GROSS NATIONAL PRODUCT 1 4,014.9 4,240.3 4,526.7 4,484.2 4,568.0 4,662.8 4,724.5 4,806.9 By source 2 Personal consumption expenditures 2,629.0 2,807.5 3,012.1 2,992.2 3,058.2 3,076.3 3,128.1 3,186.8 3 Durable goods 372.2 406.5 421.9 420.5 441.4 422.0 437.8 446.9 4 Nondurable goods 911.2 943.6 997.9 995.3 1,006.6 1,012.4 1,016.2 1,030.3 5 Services 1,345.6 1,457.3 1,592.3 1,576.4 1,610.2 1,641.9 1,674.1 1,709.6 6 Gross private domestic investment 643.1 665.9 712.9 698.5 702.8 764.9 763.4 756.5 7 Fixed investment 631.8 650.4 673.7 665.8 688.3 692.9 698.1 713.5 8 Nonresidential 442.9 433.9 446.8 438.2 462.1 464.1 471.5 485.4 9 Structures 153.2 138.5 139.5 134.4 143.0 147.7 140.1 145.3 10 Producers' durable equipment 289.7 295.4 307.3 303.8 319.1 316.3 331.3 340.1 11 Residential structures 188.8 216.6 226.9 227.6 226.2 228.8 226.6 228.1 17 Change in business inventories 11.3 15.5 39.2 32.7 14.5 72.0 65.3 43.0 13 Nonfarm 14.6 17.4 40.7 31.4 17.8 72.8 49.4 35.5 14 Net exports of goods and services -78.0 -104.4 -123.0 -122.2 -125.2 -125.7 -112.1 -90.6 15 Exports 370.9 378.4 428.0 416.8 440.4 459.7 487.8 501.1 16 Imports 448.9 482.8 551.1 539.0 565.6 585.4 599.9 591.7 17 Government purchases of goods and services 820.8 871.2 924.7 915.7 932.2 947.3 945.2 954.2 18 Federal 355.2 366.2 382.0 377.5 386.3 391.4 377.7 375.2 19 State and local 465.6 505.0 542.8 538.2 546.0 555.9 567.5 579.0 By major type of product 70 Final sales, total 4,003.6 4,224.7 4,487.5 44,,445511..55 44,,555533..55 44,,559900..77 44,,665599..22 44,,776633..99 7,1 Goods 1,641.2 1,697.9 1,792.5 1,774.6 1,812.9 1,849.4 1,879.4 1,912.7 ?? Durable 706.5 725.3 776.3 767.1 792.2 808.7 819.3 851.4 73 Nondurable 934.6 972.6 1,016.3 1,007.5 1,020.7 1,040.7 1,060.1 1,061.3 74 Services 1,968.3 2,118.3 2,295.7 2,276.2 2,314.4 2,363.9 2,405.2 2,446.7 25 Structures 405.4 424.0 438.4 433.4 440.6 449.5 439.9 447.5 26 Change in business inventories 11.3 15.5 39.2 32.7 14.5 72.0 65.3 43.0 ?7 Durable goods 6.4 4.2 26.6 24.3 2.9 50.5 26.6 26.4 28 Nondurable goods 4.9 11.3 12.6 8.4 11.6 21.6 38.6 16.5 2,9 MEMO Total GNP in 1982 dollars 3,618.7 3,721.7 3,847.0 3,823.0 3,865.3 3,923.0 3,956.1 33,,998866..33 NATIONAL INCOME 30 3,234.0 3,437.1 3,678.7 3,631.8 3,708.0 3,802.0 3,850.8 n.a. 31 Compensation of employees 2,367.5 2,507.1 2,683.4 2,652.0 2,702.8 2,769.9 2,816.4 2,872.6 37 Wages and salaries 1,975.2 2,094.0 2,248.4 2,220.6 2,265.3 2,324.8 2,358.7 2,408.7 33 Government and government enterprises 372.0 393.7 420.1 416.9 423.2 429.2 437.1 443.0 34 Other 1,603.4 1,700.3 1,828.3 1,803.7 1,842.1 1,895.6 1,921.6 1,965.7 35 Supplement to wages and salaries 392.4 413.1 435.0 431.3 437.5 445.1 457.7 463.9 36 Employer contributions for social insurance 204.8 217.0 227.1 225.0 228.2 232.7 243.1 247.4 37 Other labor income 187.6 196.1 207.9 206.4 209.3 212.4 214.6 216.5 38 Proprietors' income1 255.9 286.7 312.9 308.9 306.8 326.0 323.9 322.6 39 Business and professional1 225.6 250.3 270.0 265.9 271.5 279.0 279.2 284.6 40 Farm1 30.2 36.4 43.0 43.0 35.2 47.0 44.7 38.0 41 Rental income of persons2 9.2 12.4 18.4 17.8 18.1 20.5 20.5 17.9 4? 282.3 298.9 310.4 305.2 322.0 316.1 316.2 n.a. 43 Profits before tax3 224.3 236.4 276.7 273.7 289.4 281.9 286.2 n.a. 44 Inventory valuation adjustment -1.7 8.3 -18.0 -20.0 -19.5 -18.2 -19.4 -29.8 45 Capital consumption adjustment 59.7 54.2 51.7 51.5 52.1 52.4 49.4 47.9 46 Net interest 319.0 331.9 353.6 348.1 358.3 369.5 373.9 382.1 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 • September 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'' 11998877'' Q2 Q3 Q4 Ql' Q2 PERSONAL INCOME AND SAVING 1 Total personal income 3,325.3 3,531.1 3,780.0 3,736.1 3,801.0 3,906.8 3,951.4 4,017.2 2 Wage and salary disbursements 1,975.4 2,094.0 2,248.4 2,220.6 2,265.1 2,325.1 2,358.7 2,408.7 3 Commodity-producing industries 608.9 625.5 649.8 642.8 652.8 665.5 676.0 688.7 4 Manufacturing 460.9 473.1 490.3 484.6 492.6 501.3 509.6 517.1 5 Distributive industries 473.2 498.9 531.7 526.1 536.8 547.3 558.2 572.0 6 Service industries 521.3 575.9 646.8 634.8 652.4 682.8 687.4 705.0 7 Government and government enterprises 372.0 393.7 420.1 416.9 423.0 429.5 437.1 443.0 8 Other labor income 187.6 196.1 207.9 206.4 209.3 212.4 214.6 216.5 255.9 286.7 312.9 308.9 306.8 326.0 323.9 322.6 10 Business and professional1 225.6 250.3 270.0 265.9 271.5 279.0 279.2 284.6 11 Farm1 30.2 36.4 43.0 43.0 35.2 47.0 44.7 38.0 12 Rental income of persons2 9.2 12.4 18.4 17.8 18.1 20.5 20.5 17.9 13 Dividends 78.7 82.8 88.6 87.3 89.9 91.9 93.5 95.0 14 Personal interest income 478.0 499.1 527.0 517.9 533.0 550.0 554.2 566.7 489.8 521.1 548.8 547.8 551.7 556.8 576.3 583.0 16 Old-age survivors, disability, and health insurance benefits ... 253.4 269.3 282.9 282.8 284.5 286.5 298.1 300.0 17 LESS: Personal contributions for social insurance 149.3 161.1 172.0 170.5 172.7 175.9 190.2 193.4 18 EQUALS: Personal income 3,325.3 3,531.1 3,780.0 3,736.1 3,801.0 3,906.8 3,951.4 4,017.2 19 LESS: Personal tax and nontax payments 486.6 511.4 570.3 582.0 576.2 591.0 575.8 600.6 20 EQUALS: Disposable personal income 2,838.7 3,019.6 3,209.7 3,154.1 3,224.9 3,315.8 3,375.6 3,416.5 21 LESS: Personal outlays 2,713.3 2,898.0 3,105.5 3,084.7 3,152.3 3,171.8 3,225.7 3,285.9 22 EQUALS: Personal saving 125.4 121.7 104.2 69.5 72.6 144.0 149.9 130.6 MEMO Per capita (1982 dollars) 23 Gross national product 15,122.0 15,398.0 15,772.8 15,700.2 1155,,883344..99 1166,,003311..88 1166,,112277..66 n.a. 24 Personal consumption expenditures 9,840.3 10,158.0 10,336.2 10,335.1 10,426.8 10,346.1 10,435.4 n.a. 25 Disposable personal income 10,625.0 10,929.0 11,012.0 10,889.0 10,989.0 11,145.0 11,260.0 11,228.0 26 Saving rate (percent) 4.4 4.0 3.2 2.2 2.3 4.3 4.4 3.8 GROSS SAVING 533.5 537.2 560.4 542.4 556.8 603.4 627.0 n.a. 665.3 681.6 665.3 625.0 642.2 714.1 726.3 n.a. 125.4 121.7 104.2 69.5 72.6 144.0 149.9 130.6 30 Undistributed corporate profits1 102.6 104.1 81.1 78.5 85.0 80.5 78.1 n.a. 31 Corporate inventory valuation adjustment -1.7 8.3 -18.0 -20.0 -19.5 -18.2 -19.4 -29.8 Capital consumption allowances 268.6 228822..44 297.5 295.4 299.7 330033..77 309.8 331133..44 168.7 173.5 182.5 181.6 184.9 185.8 188.5 189.8 34 Government surplus, or deficit (-), national income and product accounts -131.8 -144.4 -104.9 -82.6 -85.5 -110.7 -99.2 n.a. 35 Federal -196.9 -205.6 -157.8 -144.0 -138.3 -160.4 -155.1 n.a. 36 State and local 65.1 61.2 52.9 61.4 52.9 49.7 55.8 n.a. 528.7 523.6 552.3 539.9 541.7 597.0 612.0 628.0 38 Gross private domestic 643.1 665.9 712.9 698.5 702.8 764.9 763.4 756.5 39 Net foreign -114.4 -142.4 -160.6 -158.6 -161.1 -167.8 -151.3 -128.5 -4.8 -13.6 -8.1 -2.5 -15.1 -6.4 -15.0 -15.3 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 1987 1988 Item credits or debits 1985 1986 1987 Ql Q2 Q3 Q4 1 Balance on current account -115,102 -138,827 -153,964 -37,624 -40,852 -41,%7 -33,523 2 Not seasonally adjusted -33,032 -41,799 -47,330 -31,803 3 Merchandise trade balance2 -122,148 -144,547 -160,280 -39,871 -39,552 -39,665 -41,192 4 Merchandise exports 215,935 223,969 249,570 56,791 59,864 64,902 68,013 5 Merchandise imports -338,083 -368,516 -409,850 -96,662 -99,416 -104,567 -109,205 6 Military transactions, net -3,431 -4,372 -2,369 -78 -179 -851 -1,261 7 Investment income, net3 25,936 23,143 20,374 5,076 1,692 1,067 12,539 8 Other service transactions, net -449 2,257 1,755 -143 13 87 479 9 Remittances, pensions, and other transfers -3,786 -3,571 -3,434 -867 -884 -855 -828 10 U.S. government grants (excluding military) -11,223 -11,738 -10,011 -2,100 -2,241 -2,125 -3,545 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -2,829 -2,000 1,162 67 -170 252 1,012 12 Change in U.S. official reserve assets (increase, -) -3,858 0 31 0 2 9,149 0 1,956 0 3,419 0 3 0 2 3,741 0 13 Gold 14 Special drawing rights (SDRs) -897 -246 -509 76 -171 -210 -205 15 Reserve position in International Monetary Fund 908 1,500 2,070 606 335 407 722 16 Foreign currencies -3,869 -942 7,588 1,274 3,255 -165 3,225 17 Change in U.S. private assets abroad (increase, -)3 -25,949 -96,303 -86,298 9,049 -26,127 -25,576 -43,645 18 Bank-reported claims -1,323 -59,975 -40,531 21,870 -22,422 -16,519 -23,460 19 Nonbank-reported claims 923 -4,220 3,145 -491 2,603 -215 1,248 20 U.S. purchase of foreign securities, net -7,481 -4,297 -4,456 -1,639 -88 -972 -1,757 21 U.S. direct investments abroad, net3 -18,068 -27,811 -44,456 -10,691 -6,220 -7,870 -19,676 22 Change in foreign official assets in the United States (increase, +) -1,196 35,507 44,968 13,977 10,332 611 20,047 23 U.S. Treasury securities -838 34,364 43,361 12,193 11,083 842 19,243 24 Other U.S. government obligations -301 -1,214 1,570 -62 256 714 662 25 Other U.S. government liabilities4 767 2,054 -2,824 -1,337 -1,309 -287 108 26 Other U.S. liabilities reported by U.S. banks 645 1,187 3,901 3,543 615 -34 -223 27 Other foreign official assets5 -1,469 -884 -1,040 -360 -313 -624 257 28 Change in foreign private assets in the United States (increase, +)* 131,096 185,746 166,521 19,122 40,327 71,047 36,025 29 U.S. bank-reported liabilities 41,045 79,783 87,778 -6,100 17,961 46,153 29,764 30 U.S. nonbank-reported liabilities -366 -2,906 2,150 1,6% 1,570 -116 -1,000 31 Foreign private purchases of U.S. Treasury securities, net 20,433 3,809 -7,596 -2,826 -2,431 -2,835 4% 32 Foreign purchases of other U.S. securities, net 50,962 70,969 42,213 18,373 15,998 12,819 -4,977 33 Foreign direct investments in the United States, net3 19,022 34,091 41,976 7,979 7,229 15,026 11,742 0 0 0 0 0 0 0 34 Allocation of SDRs 35 Discrepancy 17,839 15,566 18,461 -6,547 13,071 -4,399 16,342 36 Owing to seasonal adjustments 4,141 -2,615 -4,658 3,138 37 Statistical discrepancy in recorded data before seasonal adjustment 17,839 15,566 18,461 -10,688 15,686 259 13,204 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,858 312 9,149 1,956 3,419 32 3,741 39 Foreign official assets in the United States (increase, +) excluding line 25 -1,963 33,453 47,792 15,314 11,641 898 19,939 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) -6,709 -9,327 -9,956 -2,801 -2,681 -1,723 -2,750 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 46 101 58 8 26 13 12 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 official 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 • September 1988 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are not seasonally adjusted. 1987 1988 IItteemm 11998855 11998866 11998877 Nov. Dec. Jan. Feb. Mar. Apr/ May 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 218,815 227,159 254,122 23,279 24,314 22,990 24,139 29,106 26,335 27,268 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses, c.i.f. value 352,463 382,295 424,442 36,739 37,340 34,523 37,133 38,633 36,528 37,972 3 Trade balance -133,648 -155,137 -170,320 -13,460 -13,026 -11,533 -12,994 -9,528 -10,193 -10,703 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 Type 1984 1985 1986 Dec. Jan. Feb. Mar. Apr. May Junep 1 Total 34,934 43,186 48,511 45,798 42,955 43,064 43,186 42,730 41,949 41,028 Gold stock, including Exchange Stabilization Fund1 11,0% 11,090 11,064 11,078 11,068 11,063 11,063 11,063 11,063 11,063 Special drawing rights2-3. 5,641 7,293 8,395 10,283 9,765 9,761 9,899 9,589 9,543 9,180 Reserve position in International Monetary Fund 11,541 11,947 11,730 11,349 10,804 10,445 10,645 10,803 10,431 9,992 5 Foreign currencies4 6,656 12,856 17,322 13,088 11,318 11,795 11,579 11,275 10,912 10,793 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 Dec. Jan. Feb. Mar. Apr. May June 1 Deposits 267 480 287 244 355 343 534 215 297 381 Assets held in custody i 2 U.S. Treasury securities 118,000 121,004 155,835 195,126 206,675 215,308 222,407 224,725 226,341 223,127 3 Earmarked gold3 14,242 14,245 14,048 13,919 13,882 13,824 13,773 13,719 13,654 13,662 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 ts 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 Nov. Dec. Jan. Feb. Mar. Apr. Mayp All foreign countries 1 Total, all currencies 453,656 458,012 456,628 525,894 518,604 503,254 495,003 502,398 488,939 492,844 7 Claims on United States 113,393 119,706 114,563 140,425 138,034 131,376 131,012 135,339 139,186 141,789 Parent bank 78,109 87,201 83,492 102,814 105,845 95,482 94,348 99,041 102,957 104,299 4 Other banks in United States 13,664 13,057 13,685 16,701 16,416 14,910 15,008r 14,507 • 13,342 14,624 5 Nonbanks 21,620 19,448 17,386 20,910 15,773 20,984 21,656' 21,791 22,887 22,866 6 Claims on foreigners 320,162 315,676 312,955 346,819 342,506 334,074 326,653 328,328' 314,338 315,493 7 Other branches of parent bank 95,184 91,399 %,281 116,509 122,155 115,275 111,671 108,972 103,090 102,931 8 Banks 100,397 102,960 105,237 115,591 108,856 108,161 105,604 106,936 101,226 103,429 9 Public borrowers 23,343 23,478 23,706 22,385 21,828 21,329 21,331 21,748' 20,827 21,181 10 Nonbank foreigners 101,238 97,839 87,731 92,334 89,667 89,309 88,047 90,672 89,195 87,952 11 Other assets 20,101 22,630 29,110 38,650 38,064 37,804 37,338 38,731' 35,415 35,562 12 Total payable in U.S. dollars 350,636 336,520 317,487 353,073 350,106 335,313 330,726 333,874 327,736 334,112 n Claims on United States 111,426 116,638 110,620 133,731 132,023 124,893 124,786 128,770 133,299 136,077 14 Parent bank 77,229 85,971 82,082 100,123 103,251 92,466 91,271 95,776 100,320 101,578 15 Other banks in United States 13,500 12,454 12,830 14,632 14,657 13,439 13,886 13,190 12,328 13,599 16 Nonbanks 20,697 18,213 15,708 18,976 14,115 18,988 19,629 19,804 20,651 20,900 17 Claims on foreigners 228,600 210,129 195,063 203 ,%3 202,427 196,154 190,922 190,758 179,712 182,981 18 Other branches of parent bank 78,746 72,727 72,197 85,548 88,284 84,468 83,063 81,692 75,654 76,136 19 Banks 76,940 71,868 66,421 65,771 63,706 61,359 58,181 58,274 54,578 57,102 70 Public borrowers 17,626 17,260 16,708 14,952 14,730 14,720 14,645 14,853 14,407 14,342 21 Nonbank foreigners 55,288 48,274 39,737 37,692 35,707 35,607 35,033 35,939 35,073 35,401 22 Other assets 10,610 9,753 11,804 15,379 15,656 14,266 15,018 14,346 14,725 15,054 United Kingdom 23 Total, all currencies 144,385 148,599 140,917 167,726 158,695 160,244 157,634 155,657 152,592 156,184 74 Claims on United States 27,675 33,157 24,599 35,392 32,518 32,464 32,869 29,406 31,618 32,832 75 Parent bank 21,862 26,970 19,085 29,553 27,350 26,923 27,484 24,512 26,155 27,506 ?6 Other banks in United States 1,429 1,106 1,612 1,694 1,259 1,558 1,527 1,111 1,013 1,360 77 Nonbanks 4,384 5,081 3,902 4,145 3,909 3,983 3,858 3,783 4,450 3,966 ?8 Claims on foreigners 111,828 110,217 109,508 121,487 115,700 118,407 115,489 117,150 112,261 114,642 79 Other branches of parent bank 37,953 31,576 33,422 39,138 39,903 39,702 38,077 34,278 33,019 33,849 30 Banks 37,443 39,250 39,468 41,649 36,735 39,697 38,654 40,422 38,790 39,883 31 Public borrowers 5,334 5,644 4,990 5,272 4,752 4,639 4,613 5,312 4,914 5,177 32 Nonbank foreigners 31,098 33,747 31,628 35,428 34,310 34,369 34,145 37,138 35,538 35,733 33 Other assets 4,882 5,225 6,810 10,847 10,477 9,373 9,276 9,101 8,713 8,710 34 Total payable in U.S. dollars 112,809 108,626 95,028 107,289 100,574 102,148 101,642 95,972 93,214 97,188 35 Claims on United States 26,868 32,092 23,193 33,409 30,439 30,156 30,971 27,213 29,555 30,736 36 Parent bank 21,495 26,568 18,526 28,685 26,304 25,854 26,565 23,217 25,137 26,608 37 Other banks in United States 1,363 1,005 1,475 1,408 1,044 1,132 1,273 945 781 1,068 38 Nonbanks 4,010 4,519 3,192 3,316 3,091 3,170 3,133 3,051 3,637 3,060 39 Claims on foreigners 82,945 73,475 68,138 68,864 64,560 67,458 66,313 64,422 59,434 62,018 40 Other branches of parent bank 33,607 26,011 26,361 29,166 28,635 29,336 29,813 26,812 24,867 25,448 41 26,805 26,139 23,251 21,833 19,188 20,814 19,516 19,831 18,065 19,555 4? Public borrowers 4,030 3,999 3,677 3,472 3,313 3,313 3,347 3,864 3,412 3,252 43 Nonbank foreigners 18,503 17,326 14,849 14,393 13,424 13,995 13,637 13,915 13,090 13,763 44 Other assets 2,9% 3,059 3,697 5,016 5,575 4,534 4,358 4,337 4,225 4,434 Bahamas and Caymans 45 Total, all currencies 146,811 142,055 142,592 155,100 160,321 148,718 143,630 153,254 152,930 156,353 46 Claims on United States 77,2 % 74,864 78,048 82,366 85,318 79,893 78,015 85,847 88,293 90,8% 47 Parent bank 49,449 50,553 54,575 52,759 60,048 51,249 48,402 56,330 59,240 60,419 48 Other banks in United States 11,544 11,204 11,156 13,980 14,277 12,472 12,662' 12,400 11,480 12,489 49 16,303 13,107 12,317 15,627 10,993 16,172 16,95r 17,117 17,573 17,988 50 Claims on foreigners 65,598 63,882 60,005 67,658 70,162 63,469 60,111 61,952 58,808 59,374 51 Other branches of parent bank 17,661 19,042 17,2% 18,905 21,277 19,802 18,486 19,368 17,790 18,463 57 30,246 28,192 27,476 33,479 33,751 29,340 27,687 28,637 26,690 27,019 53 Public borrowers 6,089 6,458 7,051 7,1% 7,428 7,257 7,063 6,891 6,849 6,955 54 Nonbank foreigners 11,602 10,190 8,182 8,078 7,706 7,070 6,875 7,056 7,479 6,937 55 Other assets 3,917 3,309 4,539 5,076 4,841 5,356 5,504 5,455 5,829 6,083 56 Total payable in U.S. dollars 141,562 136,794 136,813 144,525 151,434 141,135 135,916 145,050 145,398 148,545 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 • September 1988 3.14 Continued 1987 1988 Nov. Dec. Jan. Feb. Mar. Apr. May" All foreign countries 57 Total, all currencies 453,656 458,012 456,628 525,894 518,604 503,254 495,003 502,398 488,939 492,844 58 Negotiable CDs 37,725 34,607 31,629 34,690 30,929 29,277 31,158 31,854 31,585 32,175 59 To United States 147,583 156,281 152,465 156,206 161,390 150,676 149,402 157,063 155,371 161,997 60 Parent bank 78,739 84,657 83,394 83,894 87,606 78,590 85,142 91,628 85,598 86,958 61 Other banks in United States 18,409 16,894 15,646 18,871 20,559 15,801 14,237 14,806 16,224 15,370 62 Nonbanks 50,435 54,730 53,425 53,441 53,225 56,285 50,023 50,629 53,549 59,669 63 To foreigners 247,907 245,939 253,775 312,596 304,790 302,042 293,360 290,064 281,172 277,111 64 Other branches of parent bank 93,909 89,529 95,146 117,036 124,601 116,434 111,949 109,071 105,158 104,667 65 Banks 78,203 76,814 77,809 97,490 87,261 89,552 88,400 88,257 85,097 82,512 66 Official institutions 20,281 19,520 17,835 21,873 19,564 21,130 20,373 18,608 18,006 17,700 67 Nonbank foreigners 55,514 60,076 62,985 76,197 73,364 74,926 72,638 74,128 72,911 72,232 68 Other liabilities 20,441 21,185 18,759 22,402 21,495 21,259 21,083 23,417 20,811 21,561 69 Total payable in U.S. dollars 367,145 353,712 336,406 361,698 361,438 344,805 341,536r 344,395 337,122 341,729 70 Negotiable CDs 35,227 31,063 28,466 30,075 26,768 24,785 26,386 26,869 26,5% 27,233 71 To United States 143,571 150,905 144,483 143,188 148,442 139,185 138,737 144,983 144,773 149,571 72 Parent bank 76,254 81,631 79,305 77,775 81,783 73,064 79,363 84,801 79,916 80,392 73 Other banks in United States 17,935 16,264 14,609 17,197 19,155 14,433 12,918 13,501 15,013 13,980 74 Nonbanks 49,382 53,010 50,569 48,216 47,504 51,688 46,456 46,681 49,844 55,199 75 To foreigners 178,260 163,583 156,806 179,526 177,711 172,285 167,623'' 163,275 156,858 155,524 76 Other branches of parent bank 77,770 71,078 71,181 84,630 90,469 84,298 82,996 81,073 76,718 76,920 77 Banks 45,123 37,365 33,850 38,932 35,065 33,315 32,278 30,688 29,924 28,725 78 Official institutions 15,773 14,359 12,371 14,161 12,409 12,736 12,071 10,489 10,539 10,028 79 Nonbank foreigners 39,594 40,781 39,404 41,803 39,768 41,936 40,278' 41,025 39,677 39,851 80 Other liabilities 10,087 8,161 6,651 8,909 8,517 8,550 8,790 9,268 8,895 9,401 United Kingdom 81 Total, all currencies 144,385 148,599 140,917 167,726 158,695 160,244 157,634 155,657 152,592 156,184 82 Negotiable CDs 34,413 31,260 27,781 30,475 26,988 25,184 26,786 27,279 27,090 27,659 83 To United States 25,250 29,422 24,657 24,961 23,470 25,209 26,382 22,725 23,868 27,145 84 Parent bank 14,651 19,330 14,469 14,018 13,223 14,177 15,527 14,506 14,904 15,518 85 Other banks in United States 3,125 2,974 2,649 2,103 1,740 1,596 1,615 1,768 1,508 2,408 86 Nonbanks 7,474 7,118 7,539 8,840 8,507 9,436 9,240 6,451 7,456 9,219 87 To foreigners 77,424 78,525 79,498 101,686 98,689 100,001 94,235 95,049 92,219 91,995 88 Other branches of parent bank 21,631 23,389 25,036 30,727 33,078 33,344 30,350 30,211 27,383 28,743 89 Banks 30,436 28,581 30,877 37,690 34,290 34,820 33,520 33,316 32,970 31,995 90 Official institutions 10,154 9,676 6,836 12,000 11,015 11,571 11,048 9,624 10,181 9,672 91 Nonbank foreigners 15,203 16,879 16,749 21,269 20,306 20,266 19,317 21,898 21,685 21,585 92 Other liabilities 7,298 9,392 8,981 10,604 9,548 9,850 10,231 10,604 9,415 9,385 93 Total payable in U.S. dollars 117,497 112,697 99,707 108,481 102,550 105,138 105,162 98,982 96,532 99,378 94 Negotiable CDs 33,070 29,337 26,169 27,999 24,926 22,875 24,281 24,716 24,392 24,994 95 To United States 24,105 27,756 22,075 19,800 17,752 20,799 23,019 19,116 20,310 22,405 % Parent bank 14,339 18,956 14,021 12,792 12,026 13,307 14,626 13,622 13,947 14,134 97 Other banks in United States 2,980 2,826 2,325 1,789 1,512 1,398 1,401 1,556 1,306 2,184 98 Nonbanks 6,786 5,974 5,729 5,219 4,214 6,094 6,992 3,938 5,057 6,087 99 To foreigners 56,923 51,980 48,138 56,443 55,919 57,620 53,444 50,590 47,589 47,%9 100 Other branches of parent bank 18,294 18,493 17,951 20,826 22,334 22,870 21,753 21,292 18,060 18,902 101 Banks 18,356 14,344 15,203 17,024 15,580 16,119 14,401 13,106 12,889 12,860 102 Official institutions 8,871 7,661 4,934 7,970 7,530 7,993 7,045 5,181 5,918 5,470 103 Nonbank foreigners 11,402 11,482 10,050 10,623 10,475 10,638 10,245 11,011 10,722 10,737 104 Other liabilities 3,399 3,624 3,325 4,239 3,953 3,844 4,418 4,560 4,241 4,010 Bahamas and Caymans 105 Total, all currencies 146,811 142,055 142,592 155,100 160,321 148,718 143,630 153,254 152,930 156,353 106 Negotiable CDs 615 610 847 861 885 851 940 1,069 1,038 1,0% 107 To United States 102,955 104,556 106,081 108,039 113,950 105,147 99,821 110,451 109,199 112,605 108 Parent bank 47,162 45,554 49,481 50,030 53,239 46,594 48,976 55,981 50,568 51,735 109 Other banks in United States 13,938 12,778 11,715 15,204 17,224 13,017 11,455 11,829 13,676 11,741 110 Nonbanks 41,855 46,224 44,885 42,805 43,487 45,536 39,390 42,641 44,955 49,129 111 To foreigners 40,320 35,053 34,400 44,398 43,815 40,822 41,234 40,038 40,953 40,369 112 Other branches of parent bank 16,782 14,075 12,631 17,812 19,185 18,629 18,604 17,260 19,420 18,909 113 Banks 12,405 10,669 8,617 12,611 10,769 9,344 9,825 9,404 9,162 9,080 114 Official institutions 2,054 1,776 2,719 2,064 1,504 1,377 1,179 1,873 1,164 1,053 115 Nonbank foreigners 9,079 8,533 10,433 11,911 12,357 11,472 11,626 11,501 11,207 11,327 116 Other liabilities 2,921 1,836 1,264 1,802 1,671 1,898 1,635 1,696 1,740 2,283 117 Total payable in U.S. dollars 143,582 138,322 138,774 146,485 152,927 141,750 136,636 145,366 146,134 148,923 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 1987r 1988r IItteemm 11998855 11998866 Nov. Dec. Jan. Feb. Mar. Apr. May" 1 Total1 111117777788888,,,,,333338888800000 222221111111111,,,,,888883333344444 222225555544444,,,,,000008888899999 222225555599999,,,,,555551111177777 222226666666666,,,,,999992222255555 222227777766666,,,,,222223333333333 222228888844444,,,,,333333333300000 222228888866666,,,,,444446666600000 222229999944444,,,,,111114444455555 By type 2 Liabilities reported by banks in the United States'' 2222266666,,,,,777773333344444 2222277777,,,,,999992222200000 3333344444,,,,,222226666688888 3333311111,,,,,888883333333333 3333322222,,,,,555552222288888 3333322222,,,,,111112222211111 2222299999,,,,,888887777799999 2222299999,,,,,555559999966666 3333300000,,,,,999998888888888 3 U.S. Treasury bills and certificates3 5555533333,,,,,222225555522222 7777755555,,,,,666665555500000 8888822222,,,,,555554444422222 8888888888,,,,,888882222299999 9999900000,,,,,666663333355555 9999933333,,,,,444440000077777 9999955555,,,,,666662222244444 9999944444,,,,,999997777744444 9999966666,,,,,666660000044444 U.S. Treasury bonds and notes 4 Marketable 7777777777,,,,,111115555544444 9999911111,,,,,333336666688888 111112222200000,,,,,777776666622222 111112222222222,,,,,444443333322222 111112222277777,,,,,555555555500000 111113333344444,,,,,777771111199999 111114444422222,,,,,888886666655555 111114444455555,,,,,999994444400000 111115555500000,,,,,888887777700000 5 Nonmarketable4 33333,,,,,555555555500000 11111,,,,,333330000000000 333330000000000 333330000000000 333330000000000 333330000000000 777779999922222 777779999955555 444449999999999 6 U.S. securities other than U.S. Treasury securities3 1111177777,,,,,666669999900000 1111155555,,,,,555559999966666 1111166666,,,,,222221111177777 1111166666,,,,,111112222233333 1111155555,,,,,999991111122222 1111155555,,,,,666668888866666 1111155555,,,,,111117777700000 1111155555,,,,,111115555555555 1111155555,,,,,111118888844444 By area 7 Western Europe' 7777744444.....444444444477777 8888888888,,,,,666662222299999 111111111177777,,,,,666662222288888 111112222244444,,,,,666662222200000 111112222277777,,,,,777775555533333 111112222277777,,,,,666661111144444 111112222299999,,,,,333337777766666 111112222299999,,,,,777770000044444 111113333311111,,,,,000004444444444 11111,,,,,333331111155555 22222,,,,,000000000044444 44444,,,,,888888888844444 44444,,,,,999996666611111 66666,,,,,111118888822222 66666,,,,,888883333399999 77777,,,,,999995555544444 88888,,,,,333331111144444 99999,,,,,000007777766666 9 Latin America and Caribbean 1111111111,,,,,111114444488888 88888,,,,,444441111177777 88888,,,,,999992222244444 88888,,,,,333332222288888 77777,,,,,999995555500000 88888,,,,,222229999966666 88888,,,,,777773333344444 88888,,,,,555552222200000 99999,,,,,111114444455555 10 Asia 8888866666.....444444444488888 111110000055555,,,,,888886666688888 111111111166666,,,,,444442222266666 111111111166666,,,,,000006666600000 111111111199999,,,,,111113333399999 111112222277777,,,,,333330000044444 111113333311111,,,,,444442222233333 111113333322222,,,,,000001111166666 111113333355555,,,,,000008888800000 11111,,,,,888882222244444 11111,,,,,555550000033333 11111,,,,,555556666622222 11111,,,,,444440000022222 11111,,,,,444445555588888 11111,,,,,444449999955555 11111,,,,,555551111122222 11111,,,,,444441111177777 11111,,,,,444441111188888 12 Other countries® 33333,,,,,111119999999999 55555,,,,,444441111122222 44444,,,,,666666666655555 44444,,,,,111114444477777 44444,,,,,444444444422222 44444,,,,,666668888822222 44444,,,,,888883333399999 55555,,,,,999999999933333 77777,,,,,888888888833333 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 1987r 1988 IItteemm 11998844 11998855 11998866 June Sept. Dec. Mar/ 1 Banks' own liabilities 8,586 15,368 29,702 39,487 46,800 55,688 55,871 2 Banks' own claims 11,984 16,294 26,180 34,209 41,239 50,486 51,556 3 Deposits 4,998 8,437 14,129 12,043 14,535 18,109 17,702 4 Other claims 6,986 7,857 12,052 22,166 26,704 32,377 33,854 5 Claims of banks' domestic customers2 569 580 2,507 923 1,067 551 810 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 • September 1988 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1987f 1988 Holder and type of liability 11998844 11998855 11998866 Nov. Dec. Jan/ Feb/ Mar. Apr. May" 1 All foreigners 407,306 435,726 540,996 605,016 618,903 601,332 605,301 607,023R 611,043 628,149 2 Banks' own liabilities 306,898 341,070 406,485 457,635 469,829 446,391 446,235 444,887r 449,107 464,278 3 Demapd deposits 19,571 21,107 23,789 23,748 22,718 20,740 21,129 21,889f 20,777 23,259 4 Time deposits 110,413 117,278 130,891 147,100 148,401 138,964 140,178 137,89c 134,370 137,876 5 Other. 26,268 29,305 42,705 52,665 51,120 52,694 52,661 46,997r 45,567 47,230 6 Own foreign offices3 150,646 173,381 209,100 234,122 247,590 233,993 232,268 238,11C 248,394 255,912 7 Banks' custody liabilities4 100,408 94,656 134,511 147,381 149,074 154,941 159,066 162,136 161,935 163,871 8 U.S. Treasury bills and certificates5 76,368 69,133 90,398 %,534 101,743 103,861 107,087 109,233 107,881 108,803 9 Other negotiable and readily transferable instruments 18,747 17,964 15,417 16,815 16,791 16,727 15,650 16,121 16,017 16,595 10 Other 5,293 7,558 28,6% 34,031 30,540 34,353 36,328 36,783 38,038 38,472 11 Nonmonetary international and regional organizations 4,454 5,821 5,807 5,809 4,387 5,875 8,640 6,033' 4,575 6,729 12 Banks' own liabilities 2,014 2,621 3,958 3,195 2,626 4,052 6,629 4,03 r 2,412 4,738 13 Demand deposits 254 85 199 74 249 70 74 134 67 695 14 Time deposits1 1,267 2,067 2,065 1,094 1,538 1,583 2,481 2,061r 335 1,960 15 Other. 493 469 1,693 2,027 839 2,398 4,074 1,836 2,010 2,083 16 Banks' custody liabilities4 2,440 3,200 1,849 2,614 1,761 1,823 2,011 2,002 2,163 1,991 17 U.S. Treasury bills and certificates 916 1,736 259 747 265 613 415 635 587 132 18 Other negotiable and readily transferable instruments 1,524 1,464 1,590 1,811 1,497 1,210 1,521 1,351 1,564 1,852 19 Other 0 0 0 55 0 0 75 16 11 7 20 Official institutions* 86,065 79,985 103,569 116,811 120,662 123,163 125,527 125,503R 124,570 127,592 21 Banks' own liabilities 19,039 20,835 25,427 31,076 28,698 29,901 29,234 26,928r 26,536 27,979 22 Demand deposits 1,823 2,077 2,267 1,820 1,949 1,605 1,861 2,021r 1,660 2,340 23 Time deposits' 9,374 10,949 10,497 13,706 12,843 11,913 11,654 l l^ 11,666 12,366 24 Other. 7,842 7,809 12,663 15,549 13,906 16,383 15,719 13,158 13,209 13,272 25 Banks' custody liabilities4 67,026 59,150 78,142 85,735 91,965 93,262 %,294 98,575 98,033 99,613 26 U.S. Treasury bills and certificates5 59,976 53,252 75,650 82,542 88,829 90,635 93,407 95,624 94,974 %,604 27 Other negotiable and readily transferable instruments6 6,966 5,824 2,347 2,993 2,990 2,442 2,592 2,750 2,939 2,775 28 Other 84 75 145 200 146 185 295 201 120 234 29 Banks9 248,893 275,589 351,745 400,526 414,152 391,750 390,848 395,463R 401,843 413,422 30 Banks' own liabilities 225,368 252,723 310,166 354,376 371,471 345,597 344,040 347,937r 353,842 364,968 31 Unaffiliated foreign banks 74,722 79,341 101,066 120,254 123,880 111,605 111,773 109,827' 105,449 109,057 32 Demand deposits 10,556 10,271 10,303 11,862 10,915 9,786 9,759 10,00C 9,438 10,271 33 Time deposits' 47,095 49,510 64,232 76,591 79,710 71,130 71,709 70,171r 68,250 69,878 34 Other. 17,071 19,561 26,531 31,802 33,256 30,689 30,305 29,655r 27,760 28,908 35 Own foreign offices3 150,646 173,381 209,100 234,122 247,590 233,993 232,268 238,11C 248,394 255,912 36 Banks' custody liabilities4 23,525 22,866 41,579 46,150 42,682 46,152 46,808 47,526 48,000 48,454 37 U.S. Treasury bills and certificates 11,448 9,832 9,984 9,480 9,134 8,979 9,526 9,597 8,889 8,872 38 Other negotiable and readily transferable instruments 7,236 6,040 5,165 5,586 5,392 5,580 4,436 4,627 4,637 4,450 39 Other 4,841 6,994 26,431 31,084 28,156 31,594 32,846 33,303 34,474 35,132 40 Other foreigners 67,894 74,331 79,875 81,870 79,701 80,544 80,285 80,024 80,055 80,406 41 Banks' own liabilities 60,477 64,892 66,934 68,988 67,034 66,841 66,332 65,990 66,317 66,593 42 Demand deposits 6,938 8,673 11,019 9,992 9,605 9,279 9,435 9,734 9,612 9,953 43 Time deposits 52,678 54,752 54,097 55,709 54,310 54,338 54,334 53,909 54,118 53,672 44 Other. 861 1,467 1,818 3,287 3,119 3,224 2,563 2,347 2,586 2,%7 45 Banks' custody liabilities4 7,417 9,439 12,941 12,882 12,666 13,703 13,953 14,034 13,739 13,813 46 U.S. Treasury bills and certificates 4,029 4,314 4,506 3,764 3,515 3,633 3,740 3,378 3,430 3,1% 47 Other negotiable and readily transferable instruments6 3,021 4,636 6,315 6,425 6,914 7,495 7,102 7,393 6,876 7,519 48 Other 367 489 2,120 2,693 2,238 2,575 3,112 3,263 3,433 3,099 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,476 9,845 7,4% 7,361 7,314 7,647 7,370 7,325 7,480 8,261 1. Excludes negotiable time certificates of deposit, which are included in securities, held by or through reporting banks. "Other negotiable and readily transferable instruments." 5. Includes nonmarketable certificates of indebtedness and Treasury bills 2. Includes borrowing under repurchase agreements. issued to official institutions of foreign countries. 3. U.S. banks: includes amounts due to own foreign branches and foreign 6. Principally bankers acceptances, commercial paper, and negotiable time subsidiaries consolidated in "Consolidated Report of Condition" filed with bank certificates of deposit. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of 7. Principally the International Bank for Reconstruction and Development, and foreign banks: principally amounts due to head office or parent foreign bank, and the Inter-American and Asian Development Banks. Data exclude "holdings of foreign branches, agencies, or wholly owned subsidiaries of head office or parent dollars" of the International Monetary Fund. foreign bank. 8. Foreign central banks, foreign central governments, and the Bank for 4. Financial claims on residents of the United States, other than long-term International Settlements. 9. Excludes central banks, which are included in "Official institutions." 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 Nov. Dec.' Jan. Feb. Mar. Apr. May" 1 407,306 435,726 540,996 605,016' 618,903 601,332' 605,301' 607,023' 611,043 628,149 2 Foreign countries 402,852 429,905 535,189 599,207' 614,516 595,457' 596,660' 600,990' 606,468 621,420 3 Europe 153,145 164,114 180,556 228,947' 234,651 225,552' 226,517' 213,023' 218,497 228,002 4 Austria 615 693 1,181 1,254 920 992 964 958' 1,177 1,090 5 Belgium-Luxembourg 4,114 5,243 6,729 10,959' 9,347 9,433' 9,832 8,804 9,624 9,893 6 Denmark 438 513 482 632' 760 551' 659 930 1,034 1,164 7 Finland 418 4% 580 461 377 401 369 405 504 478 8 France 12,701 15,541 22,862 27,523' 29,954 28,198 28,868 28,449 27,040 28,219 9 Germany 3,358 4,835 5,762 8,549' 7,047 7,701' 8,872 6,594' 6,857 6,247 10 Greece 699 666 700 715 689 638 639 656 656 731 11 Italy 10,762 9,667 10,875 10,016 12,073 11,259 11,001 10,076 10,040 9,285 17 Netherlands 4,731 4,212 5,600 6,490 5,014 5,272 5,302 5,399 5,134 5,757 n Norway 1,548 948 735 1,074 1,362 1,1% 828 917 1,101 1,239 14 Portugal 597 652 699 858 801 725 780 877 917 910 15 Spain 2,082 2,114 2,407 2,616' 2,621 2,359 2,433 2,618 2,445 2,839 16 Sweden 1,676 1,422 884 2,882 1,379 1,393 1,719 1,836 1,712 2,280 17 Switzerland 31,740 29,020 30,534 30,167 33,765 31,932' 32,006' 31,815 30,690 32,505 18 Turkey 584 429 454 433 703 674 541' 616 518 628 19 United Kingdom 68,671 76,728 85,334 115,023' 116,717 111,845' 112,207 101,590r 109,447 115,439 20 Yugoslavia 602 673 630 484' 710 541 557 550 566 586 21 Other Western Europe1 7,192 9,635 3,326 8,184 9,798 9,683 8,340 9,244' 8,306 7,968 7? U.S.S.R 79 105 80 36 31 37 49 66 44 136 23 Other Eastern Europe2 537 523 702 591' 582 721 549 623 686 608 24 Canada 16,059 17,427 26,345 28,681 30,084 28,691 25,%7 27,330' 27,030 27,580 75 Latin America and Caribbean 153,381 167,856 210,318 214,299' 220,365 212,097' 212,731' 222,136' 225,749 229,377 26 Argentina 4,394 6,032 4,757 5,275' 5,006 4,902' 5,092' 5,101 5,307 5,219 77 Bahamas 56,897 57,657 73,619 70,947' 74,590 69,205' 64,964 70,266' 69,920 74,005 78 Bermuda 2,370 2,765 2,922 2,231 2,335 2,187' 2,021 2,214' 2,402 2,927 79 Brazil 5,275 5,373 4,325 4,139' 4,003 3,937' 3,747' 4,074 3,992 4,762 30 British West Indies 36,773 42,674 72,263 78,233' 81,675 78,503 82,625 88,344' 92,631 90,321 31 Chile 2,001 2,049 2,054 2,2^ 2,210 2,122 2,361 2,314 2,251 2,356 37 Colombia 2,514 3,104 4,285 4,308' 4,208 3,947 3,897 3,833 3,843 4,395 33 Cuba 10 11 7 9 12 8 9 8 13 9 34 Ecuador 1,092 1,239 1,236 1,088' 1,082 1,115 1,133 1,169 1,174 1,206 35 Guatemala 896 1,071 1,123 1,033' 1,082 1,098 1,098 1,182 1,209 1,191 36 Jamaica 183 122 136 150 160 150 148 208 209 152 37 Mexico 12,303 14,060 13,745 14,453' 14,480 15,024 15,186 15,783 15,347 15,866 38 Netherlands Antilles 4,220 4,875 4,970 5,228' 4,972 4,987 5,231 5,207' 5,345 5,348 39 Panama 6,951 7,514 6,886 7,514' 7,414 7,329 6,983 4,306 4,059 4,006 40 Peru 1,266 1,167 1,163 1,208' 1,275 1,235 1,328 1,364 1,424 1,422 41 Uruguay 1,394 1,552 1,537 1,526 1,580 1,670 1,753 1,763 1,743 1,715 47 Venezuela 10,545 11,922 10,171 9,088' 9,048 9,174 9,729 9,411 9,564 9,255 43 Other 4,297 4,668 5,119 5,650' 5,234 5,502 5,426 5,591 5,315 5,221 44 7711,,118877 72,280 108,831 118,843' 121,401 121,245' 122,973' 129,265' 125,624 125,544 China 45 Mainland 1,153 1,607 1,476 1,435 1,162 1,336 1,352 1,562 1,789 1,921 46 Taiwan 4,990 7,786 18,902 21,574' 21,503 22,878' 23,884 24,005 23,982 23,874 47 Hong Kong 6,581 8,067 9,393 10,541 10,1% 9,579 io,oi(y 10,011 9,631 10,209 48 India 507 712 674 701 582 571 879 659' 675 619 49 Indonesia 1,033 1,466 1,547 1,677 1,399 1,474 1,583 1,547 1,065 1,016 SO Israel 1,268 1,601 1,892 1,220' 1,292 1,270 1,333 1,400 1,292 1,190 SI Japan 21,640 23,077 47,410 52,735 54,418 55,221 56,346 60,334 58,567 57,389 57 Korea 1,730 1,665 1,141 1,606 1,637 1,709 1,502 1,593 1,574 2,057 53 Philippines 1,383 1,140 1,866 1,259 1,085 1,035 1,009 1,095 1,015 975 5 S 5 4 T M h i a d i d la le n - d E ast oil-exporting countries3i 16 1 , , 8 2 0 57 4 14 1 , , 5 3 2 5 3 8 12 1 , , 3 1 5 1 2 9 13 1 , , 3 4 7 83 9 13 1 , , 9 3 9 4 4 5 12 1 , , 5 4 0 33 3 12 1 , , 4 35 0 4 8 12 1 , , 7 1 3 8 5 9 12 1 , , 6 1 4 8 6 1 12 1 , ,4 4 4 2 8 0 56 Other 12,841 9,276 11,058 11,232 12,788 12,237' 11,311' 13,135 12,208 12,426 57 Africa 3,3% 4,883 4,021 4,065 3,945 3,758' 3,756' 4,034 3,878 4,054 58 Egypt 647 1,363 706 1,169 1,151 1,142 l.lW 1,099 1,218 1,196 59 Morocco 118 163 92 75 194 71 69 75 68 65 60 South Africa 328 388 270 246 202 214 194 387 195 266 61 Zaire 153 163 74 82 67 89 86 81 82 63 62 Oil-exporting countries 1,189 1,494 1,519 1,107' 1,014 981 1,047 1,062 1,008 1,044 63 Other %1 1,312 1,360 1,386 1,316 1,261 1,241 1,330 1,307 1,419 64 Other countries 5,684 3,347 5,118 4,372 4,070 4,114 4,717 5,203 5,689 6,862 65 Australia 5,300 2,779 4,1% 3,711 3,327 3,319 3,814 4,154 4,885 5,943 66 All other 384 568 922 661 744 795 903 1,048 804 919 67 Nonmonetary international and regional organizations 4,454 5,821 5,807 5,809 4,387 5,875 8,640 6,033' 4,575 6,729 68 International5 3,747 4,806 4,620 3,724 2,754 4,301 6,600 4,330' 2,691 4,795 69 Latin American regional 587 894 1,033 1,478 1,272 1,181 1,505 1,305 1,528 1,727 70 Other regional6 120 121 154 608 362 393 536 397 356 207 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 • September 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 1987 1988 AArreeaa aanndd ccoouunnttrryy 11998844 11998855 11998866 Nov. Dec. Jan. Feb. Mar.' Apr. May" 1 Total 400,162 401,608 444,745 461,787' 460,261' 443,890' 442,204' 442,486 431,300 448,506 2 Foreign countries 399,363 400,577 441,724 454,617' 456,857' 441,191r 439,980' 440,360 430,338 447,450 3 Europe 99,014 106,413 107,823 107,%1' 102,324' 97,437' 100,441' 94,574 93,432 100,247 4 Austria 433 598 728 927 793 762 800 846 895 867 5 Belgium-Luxembourg 4,794 5,772 7,498 9,551 9,382' 9,626' 9,793' 8,254 8,787 8,726 6 Denmark 648 706 688 881 717' 852 746 874 614 632 7 Finland 898 823 987 1,030 1,010 876 835 729 993 1,106 8 France 9,157 9,124 11,356 13,512 13,475' 11,680' 12,268' 12,226 10,791 12,063 9 Germany 1,306 1,267 1,816 1,557 2,061' 2,195' 1,927' 1,881 1,790 1,894 10 Greece 817 991 648 452 461' 576' 711' 6% 513 558 11 Italy 9,119 8,848 9,043 7,2%' 7,467 6,508 6,164' 6,453 6,211 6,599 12 Netherlands 1,356 1,258 3,2% 3,813 2,619 2,902 2,879 2,780 2,868 2,766 13 Norway 675 706 672 938 934 842 746' 627 650 886 14 Portugal 1,243 1,058 739 545 477 471 499 425 439 400 15 Spain 2,884 1,908 1,492 2,032 1,849 1,628 1,965' 1,761 1,765 1,911 16 Sweden 2,230 2,219 1,964 2,640 2,269 2,106 2,274 2,229 2,349 2,480 17 Switzerland 2,123 3,171 3,352 2,880 2,689' 2,569' 3,086 2,237 2,452 3,093 18 Turkey 1,130 1,200 1,543 1,566 1,681' 1,637 1,660 1,593 1,733 1,543 19 United Kingdom 56,185 62,566 58,335 54,652' 50,839' 48,753' 50,493' 47,430 47,135 51,246 20 Yugoslavia 1,886 1,964 1,835 1,697 1,700 1,694 1,702 1,658 1,619 1,586 21 Other Western Europe1 596 998 539 662 66C 578 725 747 573 593 22 U.S.S.R 142 130 345 437 389 386 380 328 377 339 23 Other Eastern Europe2 1,389 1,107 948 892 852 795 790 802 876 %1 24 Canada 16,109 16,482 21,006 25,376' 25,284' 23,457' 21,930' 21,155 22,047 23,670 25 Latin America and Caribbean 207,862 202,674 208,825 213,144' 214,807' 208,046' 203,500' 209,103 199,450 202,398 26 Argentina 11,050 11,462 12,091 12,070' 11,990' 12,032' 11,977' 12,226 12,291 12,333 27 Bahamas 58,009 58,258 59,342 61,561' 64,744' 60,879' 57,415' 58,264 54,620 58,129 28 Bermuda 592 499 418 331 474' 375' 311 1,471 669 1,235 29 Brazil 26,315 25,283 25,716 26,011' 25,879' 25,932' 25,905' 25,993 26,116 26,104 30 British West Indies 38,205 38,881 46,284 50,289' 49,944' 47,882' 47,340' 52,529 47,448 47,575 31 Chile 6,839 6,603 6,558 6,429 6,305' 6,327' 6,260 6,099 6,135 5,998 32 Colombia 3,499 3,249 2,821 2,730 2,740' 2,709 2,668 2,652 22,,771177 3,082 33 Cuba 0 0 0 0 1 0 0 0 11 0 34 Ecuador 2,420 2,390 2,439 2,334 2,286 2,339 2,238 2,239 2,881 2,197 35 Guatemala3 158 194 140 145 144 134 140 149 141 149 36 Jamaica3 252 224 198 184 188 202 191 201 212 177 37 Mexico 34,885 31,799 30,698 30,101 29,534' 29,139 29,217 27,974 27,220 26,687 38 Netherlands Antilles 1,350 1,340 1,041 1,113 980 1,009 1,146 1,159 1,304 1,434 39 Panama 7,707 6,645 5,436 4,685 4,739 4,304 3,818 3,108 2,749 2,586 40 Peru 22,,338844 1,947 1,661 1,459 1,323 1,316 1,336 1,277 1,283 1,277 41 Uruguay 11,,008888 960 940 975 968 %1 955 929 913 880 42 Venezuela 11,017 10,871 11,108 10,942' 10,834' 10,753' 10,872' 11,005 10,944 10,833 43 Other Latin America and Caribbean 2,091 2,067 1,936 1,785' 1,735' 1,753 1,710 1,831 1,805 1,720 44 66,316 66,212 %,126 100,267' 106,472' 105,025' 106,870' 110088,,114488 110088,,332266 111133,,663300 China 45 Mainland 710 639 787 870 968 886 887 1,0% 1,140 841 46 Taiwan 1,849 1,535 2,681 4,784 4,577 3,877 3,813 3,554 3,807 3,805 47 Hong Kong 7,293 6,797 8,307 7,318' 8,216' 7,593' 7,948' 8,473 6,336 8,306 48 India 425 450 321 502 510 495 548 565 542 507 49 Indonesia 724 698 723 601 580 566' 632 645 643 631 50 Israel 2,088 1,991 1,634 1,282' 1,363 1,282' 1,211 1,238 1,284 1,259 51 Japan 29,066 31,249 59,674 64,767 69,113' 71,229' 73,215' 72,797 75,272 78,330 52 Korea 9,285 9,226 7,182 4,982 5,094' 4,943' 4,777 5,011 4,769 5,041 53 Philippines 2,555 2,224 2,217 2,040 2,069 1,961 1,966 2,074 1,958 2,012 54 Thailand 1,125 845 578 439 493' 52C 521' 541 516 5% 55 Middle East oil-exporting countries 5,044 4,298 4,122 5,157 4,858' 3,567 3,454' 3,538 3,923 3,541 56 Other Asia 6,152 6,260 7,901 7,524 8,633' 8,108' 7,897' 8,616 8,136 8,760 57 Africa 6,615 5,407 4,650 4,668 4,742 4,807 4,865 4,881 4,865 5,092 58 Egypt 728 721 567 526 521 513 469 483 473 503 59 Morocco 583 575 598 585 542 491 490 487 493 483 60 South Africa 2,795 1,942 1,550 1,494 1,507 1,520 1,461 1,458 1,438 1,4% 61 Zaire < 18 20 28 36 15 36 82 46 47 42 62 Oil-exporting countries 842 630 694 903 1,003 1,019 1,086 1,142 1,137 1,244 63 Other 1,649 1,520 1,213 1,123 1,153 1,229 1,276 1,265 1,276 1,324 64 Other countries 3,447 3,390 3,294 3,201 3,228 2,419' 2,375' 2,499 2,218 2,413 65 Australia 2,769 2,413 1,949 2,093 2,189 1,428 1,430 1,481 1,363 1,405 66 All other 678 978 1,345 1,109 1,039 991 945' 1,019 855 1,008 67 Nonmonetary intepational and regional organizations6 800 1,030 3,021 7,170 3,404' 2,700' 2,224 2,126 %2 1,056 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 States' Payable in U.S. Dollars Millions of dollars, end of period 1987' 1988' TTyyppee ooff ccllaaiimm 11998844 11998855 11998866 Nov. Dec. Jan. Feb. Mar. Apr. Mayp 1 Total 444444433333333333333,,,,,,,000000077777778888888 444444433333330000000,,,,,,,444444488888889999999 444444477777778888888,,,,,,,666666655555550000000 444444499999997777777,,,,,,,999999977777777777777 444444488888880000000,,,,,,,444444477777775555555 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444400000000000000,,,,,,,111111166666662222222 444444400000001111111,,,,,,,666666600000008888888 444444444444444444444,,,,,,,777777744444445555555 461,787 444444466666660000000,,,,,,,222222266666661111111 443,890 442,204 444444444444442222222,,,,,,,444444488888886666666 431,300 448,506 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666662222222,,,,,,,222222233333337777777 66666660000000,,,,,,,555555500000007777777 66666664444444,,,,,,,000000099999995555555 69,931 66666664444444,,,,,,,666666666666660000000 63,766 62,687 66666661111111,,,,,,,888888822222222222222 60,717 61,238 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 111111155555556666666,,,,,,,222222211111116666666 111111177777774444444,,,,,,,222222266666661111111 222222211111111111111,,,,,,,555555533333333333333 221,146 222222222222224444444,,,,,,,999999933333334444444 217,579 218,758 222222222222220000000,,,,,,,888888888888882222222 210,880 223,%2 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222224444444,,,,,,,999999933333332222222 111111111111116666666,,,,,,,666666655555554444444 111111122222222222222,,,,,,,999999944444446666666 127,343 111111122222227777777,,,,,,,777777711111113333333 120,467 118,918 111111111111118888888,,,,,,,222222288888882222222 117,184 122,048 66 DDeeppoossiittss 44444449999999,,,,,,,222222222222226666666 44444448888888,,,,,,,333333377777772222222 55555557777777,,,,,,,444444488888884444444 59,007 66666660000000,,,,,,,666666611111118888888 55,437 55,801 55555555555555,,,,,,,999999922222227777777 55,806 55,%1 77 OOtthheerr 77777775555555,,,,,,,777777700000006666666 66666668888888,,,,,,,222222288888882222222 66666665555555,,,,,,,444444466666662222222 68,336 66666667777777,,,,,,,000000099999995555555 65,030 63,117 66666662222222,,,,,,,333333355555555555555 61,378 66,087 88 AAllll ootthheerr ffoorreeiiggnneerrss 55555556666666,,,,,,,777777777777777777777 55555550000000,,,,,,,111111188888885555555 44444446666666,,,,,,,111111177777771111111 43,367 44444442222222,,,,,,,999999955555555555555 42,079 41,842 44444441111111,,,,,,,555555500000000000000 42,519 41,258 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33 ...... 33333332222222,,,,,,,999999911111116666666 22222228888888,,,,,,,888888888888881111111 33333333333333,,,,,,,999999900000005555555 33333337777777,,,,,,,777777711111116666666 33333337777777,,,,,,,999999988888889999999 3333333,,,,,,,333333388888880000000 3333333,,,,,,,333333333333335555555 4444444,,,,,,,444444411111113333333 3333333,,,,,,,666666655555550000000 5555555,,,,,,,000000011111111111111 11 Negotiable and readily transferable 22222223333333,,,,,,,888888800000005555555 11111119999999,,,,,,,333333333333332222222 22222224444444,,,,,,,000000044444444444444 22222226666666,,,,,,,6666666%%%%%%% 22222224444444,,,,,,,444444499999999999999 12 Outstanding collections and other 5555555,,,,,,,777777733333332222222 6666666,,,,,,,222222211111114444444 5555555,,,,,,,444444444444448888888 7777777,,,,,,,333333377777770000000 8888888,,,,,,,444444477777779999999 13 MEMO: Customer liability on 33333337777777,,,,,,,111111100000003333333 22222228888888,,,,,,,444444488888887777777 22222225555555,,,,,,,777777700000006666666 22222223333333,,,,,,,888888822222228888888 11111118888888,,,,,,,777777766666669999999 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 40,714 38,102 41,3% 38,005 38,090 34,258 39,504 37,561 43,115 n.a. 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' 1988 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998844 11998855 11998866 June Sept. Dec. Mar. 1 243,952 227,903 232,295 237,608 237,521 235,447 219,285 By borrower 2 Maturity of 1 year or less 167,858 160,824 160,555 168,238 167,187 164,3% 115522,,662277 3 Foreign public borrowers 23,912 26,302 24,842 23,702 26,914 25,986 24,273 4 All other foreigners 143,947 134,522 135,714 144,537 140,273 138,410 128,354 5 Maturity over 1 year1 76,094 67,078 71,740 69,370 70,334 71,051 66,658 6 Foreign public borrowers 38,695 34,512 39,103 39,372 39,476 38,626 35,581 7 All other foreigners 37,399 32,567 32,637 29,997 30,858 32,425 31,076 By area Maturity of 1 year or less 8 Europe 58,498 56,585 61,784 69,138 62,941 5599,,112233 5511,,552233 9 Canada 6,028 6,401 5,895 5,773 5,890 5,712 4,938 10 Latin America and Caribbean 62,791 63,328 56,271 55,691 58,387 56,410 55,681 11 33,504 27,966 29,457 31,184 32,161 36,436 35,822 1? 4,442 3,753 2,882 2,989 2,871 2,824 2,600 13 All other2 2,593 2,791 4,267 3,463 4,937 3,891 2,062 Maturity of over 1 year 14 9,605 7,634 6,737 6,479 6,753 66,,883311 55,,997711 15 Canada 1,882 1,805 1,925 1,664 1,579 2,661 2,242 16 Latin America and Caribbean 56,144 50,674 56,719 55,609 55,089 53,788 51,514 17 5,323 4,502 4,043 3,495 3,497 3,649 3,713 18 Africa 2,033 1,538 1,539 1,512 1,622 1,746 2,158 19 All other2 1,107 926 777 611 1,794 2,375 1,060 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 • September 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 1986 1987 1988 Area or country 1764 l70J Mar. June Sept. Dec. Mar. June Sept. Dec. Mar. 1 Total 405.7 385.3 385.6 389.7 389.5 389.6 394.8r 384.8' 386.7' 382.8' 371.0' 2 G-10 countries and Switzerland 148.1 146.0 152.8 160.3 159.0 158.0 162.7r 158.0' 155.6' 161.3' 157.3' 3 Belgium-Luxembourg 8.7 9.2 8.2 9.0 8.5 8.4 9.r 8.3 8.2 10.1 9.4 4 France 14.1 12.1 13.6 15.1 14.7 13.8 13.3 12.5 13.7 13.8 11.5 5 Germany 9.0 10.5 11.2 11.5 12.5 11.7 12.7 11.2 10.5 12.6 11.8 6 Italy 10.1 9.6 8.3 9.3 8.1 9.0 8.6 7.5 6.6 7.3 7.4 7 Netherlands 3.9 3.7 3.5 3.4 3.9 4.6 4.4 7.3 4.8 4.1 3.3 8 Sweden 3.2 2.7 2.8 2.9 2.7 2.4 3.0 2.4 2.6 2.1 2.1 9 Switzerland 3.9 4.4 5.3 5.6 4.8 5.8 5.8 5.7 5.4 5.6' 5.1 10 United Kingdom 60.3 63.0 67.4 69.2 70.3 71.9 73.6' 71.9' 72.1' 70.1' 71.4' 11 Canada 7.9 6.8 6.0 7.0 6.2 5.4 5.3r 4.8' 4.7' 5.6 5.C 12 Japan 27.1 23.9 26.5 27.2 27.4 25.0 26.9 26.3 27.0 30.1 30.3 13 Other developed countries 33.6 29.9 31.1 30.7 29.5 26.2 25.7 25.2 25.9 26.2 26.1' 14 Austria 1.6 1.5 1.5 1.7 1.7 1.7 1.9 1.8 1.9 1.9 1.6 15 Denmark 2.2 2.3 2.5 2.4 2.3 1.7 1.7 1.5 1.6 1.7 1.4 16 Finland 1.9 1.6 1.9 1.6 1.7 1.4 1.4 1.4 1.4 1.3 1.0 17 Greece 2.9 2.6 2.5 2.6 2.3 2.3 2.1 2.0 1.9 2.0 2.3 18 Norway 3.0 2.9 2.7 3.0 2.7 2.4 2.2 2.1 2.0 2.3 2.0 19 Portugal 1.4 1.2 1.0 1.1 1.0 .8 .8 .8 .8 .5 .4 20 Spain 6.5 5.8 6.4 6.4 6.7 5.8 6.3 6.1 7.4 8.0 9.0 21 Turkey 1.9 1.8 2.1 2.5 2.1 2.0 1.7 1.7 1.5 1.6 1.6 22 Other Western Europe 1.7 2.0 2.4 2.1 1.6 1.4 1.4 1.5 1.6 1.5' 1.9 23 South Africa 4.5 3.2 3.1 3.1 3.1 3.1 3.0 3.0 2.9 2.9 2.8 24 Australia 6.0 5.0 4.9 4.2 4.1 3.5 3.2 3.1 2.9 2.5 2.0 25 OPEC countries3 24.9 21.3 20.4 20.6 20.0 19.6 20.0' 18.8' 17.1' 17.1' 26 Ecuador 2.2 2.1 2.2 2.1 2.2 2.2 2.1 2.1 2.0 1.9 1.9 27 Venezuela 9.3 8.9 8.7 8.8 8.7 8.6 8.5' 8.4' 8.2' 8.0' 8.0^ 28 Indonesia 3.3 3.0 3.3 3.0 2.8 2.5 2.4 2.2 2.0 1.9 1.9 29 Middle East countries 7.9 5.3 4.5 5.0 4.6 4.5 5.4 4.4 4.9 3.6 3.7 30 African countries 2.3 2.0 1.8 1.7 1.7 1.7 1.6 1.7 1.7 1.7 1.7 31 Non-OPEC developing countries 111.8 104.2 102.9 102.0 100.0 99.7 99.8r 100.1' 97.2' 97.4' 94.4' Latin America 32 Argentina 8.7 8.8 8.8 9.2 9.3 9.5 9.5 9.5 9.3 9.4 9.5' 33 Brazil 26.3 25.4 25.6 25.5 25.4 25.3 26.C 25.C 25.1' 24.7' 23.9' 34 Chile 7.0 6.9 7.0 7.1 7.2 7.1 7.2 7.2 7.0 6.9 6.6' 35 Colombia 2.9 2.6 2.3 2.2 2.0 2.1 2.0 1.9 1.9 2.0 1.9 36 Mexico 25.7 23.9 23.9 24.0 24.0 24.0 23.9 25.3 24.7 23.6 22.5' 37 Peru 2.2 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.2 1.1 1.1 38 Other Latin America 3.9 3.4 3.3 3.3 3.3 3.1 3.0 2.V 2.8 2.7' 2.8 Asia China 39 Mainland .7 .5 .6 .6 .6 .4 .9 .6 .3 .3 .4 40 Taiwan 5.1 4.5 4.3 3.7 4.3 4.9 5.5 6.6 5.9 8.2 6.6 41 India .9 1.2 1.2 1.3 1.3 1.2 1.7 1.7 1.9 1.9 2.1 42 Israel 1.8 1.6 1.3 1.6 1.4 1.5 1.4 1.3 1.3 1.0 1.1 43 Korea (South) 10.6 9.2 9.2 8.7 7.3 6.7 6.2 5.6 4.9 5.(Y 5.3 44 Malaysia 2.7 2.4 2.2 2.0 2.1 2.1 1.9 1.7 1.6 1.5 1.5 45 Philippines 6.0 5.7 5.6 5.7 5.4 5.4 5.4 5.4 5.4 5.1 5.1 46 Thailand 1.8 1.4 1.3 1.1 1.0 .9 .9 .8 .7 .7 1.0 47 Other Asia 1.1 1.0 .9 .8 .7 .7 .6 .7 .7 .7' .7 Africa 48 Egypt 1.2 1.0 .9 .9 .7 .7 .6 .6 .6 .5 .5 49 Morocco .8 .9 .9 .9 .9 .9 .9 .9 .8 .9 .9 50 Zaire , .1 .1 .1 .1 .1 .1 .1 .1 .1 .0 .1 51 Other Africa4 2.1 1.9 1.9 1.7 1.6 1.6 .9 1.1 1.0 1.1 1.0 52 Eastern Europe 4.4 4.1 4.0 4.0 3.4 3.2 3.0 3.3 3.3 3.0 2.9 53 U.S.S.R .1 .1 .3 .3 .1 .1 .1 .3 .5 .4 .3 54 Yugoslavia 2.3 2.2 2.0 2.0 1.9 1.7 1.6 1.7 1.7 1.6 1.7 55 Other 2.0 1.8 1.7 1.7 1.4 1.4 1.3 1.3 1.2 1.1 1.0' 56 Offshore banking centers 65.6 62.9 57.5 55.4 60.5 63.2 63.5' 61.2' 63.8' 54.5' 51.6' 57 Bahamas 21.5 21.2 21.2 17.1 19.9 22.3 24.0 20.3' 25.7' 17.3 15.9 58 Bermuda .9 .7 .7 .4 .4 .7 .8 .6 .6 .6 1.8 59 Cayman Islands and other British West Indies 11.8 11.6 9.2 12.2 12.8 13.6 11.4r 13.C 11.3' 12.4' 10.6' 60 Netherlands Antilles 3.4 2.2 2.2 2.4 1.9 1.8 1.7 1.3 1.2 1.2 1.3 61 Panama5 6.7 6.0 4.3 4.2 5.1 4.1 5.4 5.2 4.5 4.5 3.2 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.4 11.4 11.4 9.5 10.5 11.2 11.4 12.5 12.3 11.3' 11.3 64 Singapore 9.8 9.8 8.4 9.3 9.7 9.4 8.6 8.2' 8.1 7.0 7.4 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 17.3 16.9 16.8 16.8 17.2 19.8 20. r 18.1' 21.9' 23.2' 21.6' 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 States1 Millions of dollars, end of period 1987 1988 Type, and area or country 11998844 11998855 11998866'' Mar. June Sept.' Dec.' Mar." 1 Total 29,357 27,825 25,779 27,568' 29,019r 28,669 27,641 30,052 2 Payable in dollars 26,389 24,296 21,980 23,410' 24,565' 24,141 22,304 23,603 3 Payable in foreign currencies 2,968 3,529 3,800 4,158' 4,454' 4,528 5,337 6,448 By type 4 Financial liabilities 14,509 13,600 12,312 13,183' 14,096' 13,034 11,625 13,784 5 Payable in dollars 12,553 11,257 9,827 10,446' 11,197' 10,080 8,148 9,244 6 Payable in foreign currencies 1,955 2,343 2,485 2,737 2,899 2,954 3,477 4,540 7 Commercial liabilities 14,849 14,225 13,467 14,386' 14,923' 15,635 16,016 16,268 8 Trade payables 7,005 6,685 6,462 7,073' 7,286' 7,548 7,425 7,240 9 Advance receipts and other liabilities .. 7,843 7,540 7,004 7,313' 7,637' 8,086 8,591 9,028 10 Payable in dollars 13,836 13,039 12,153 12,964' 13,368' 14,061 14,157 14,359 11 Payable in foreign currencies 1,013 1,186 1,314 1,422' 1,555' 1,574 1,859 1,909 By area or country Financial liabilities 12 Europe 6,728 7,700 8,079 8,434' 9,713' 9,298 7,845 9,724 13 Belgium-Luxembourg 471 349 270 232 257 230 202 214 14 France 995 857 661 758 822 615 415 365 15 Germany 489 376 368 463 402 505 583 585 16 Netherlands 590 861 704 693 669 641 1,014 1,013 17 Switzerland 569 610 646 663 655 685 493 760 18 United Kingdom 3,297 4,305 5,140 5,365' 6,646' 6,357 4,946 6,606 19 Canada 863 839 399 431 441 397 400 464 20 Latin America and Caribbean 5,086 3,184 1,961 2,366 1,744 961 847 1,252 21 Bahamas 1,926 1,123 614 669 398 280 278 264 22 Bermuda 13 4 4 0 0 0 0 0 23 Brazil 35 29 32 26 22 22 25 0 24 British West Indies 2,103 1,843 1,163 1,545 1,223 580 476 924 25 Mexico 367 15 22 30 29 17 13 14 26 Venezuela 137 3 0 0 2 3 0 2 27 Asia 1,777 1,815 1,805 1,882 2,131 2,300 2,429 2,258 28 Japan 1,209 1,198 11,,339988 1,480 1,751 1,830 2,042 1,868 29 Middle East oil-exporting countries2 . 155 82 88 7 7 7 8 12 30 Africa 14 12 1 3 1 2 4 5 0 0 1 1 0 0 1 3 31 Oil-exporting countries3 41 50 67 67 66 76 100 80 32 All other4 Commercial liabilities 4,001 4,074 4,447 4,498' 4,966' 4,951 5,626 5,730 33 Europe 48 62 101 85 111 56 125 144 34 Belgium-Luxembourg 438 453 352 380' 423' 437 451 441 35 France 622 607 714 582r 585' 674 916 816 36 Germany 245 364 424 356' 324' 336 421 483 37 Netherlands 257 379 387 484 557 556 559 529 38 Switzerland 1,095 976 1,341 1,309 1,380 1,473 1,668 1,796 39 United Kingdom 40 Canada 1,975 1,449 1,405 1,407' 1,371' 1,399 1,301 1,402 41 Latin America and Caribbean 1,871 1,088 924 l,128r 1,06^ 1,082 865 857 42 Bahamas 7 12 32 28 13 22 19 17 43 Bermuda 114 77 156 325' 266' 252 168 299 44 Brazil 124 58 61 82 88 40 46 59 45 British West Indies 32 44 49 93' 67' 47 19 11 46 Mexico 586 430 217 189' 214' 231 189 161 47 Venezuela 636 212 216 223' 203 176 162 77 48 Asia 5,285 6,046 5,091 5,814' 5,9 ^ 6,511 6,573 6,535 49 Japan 1,256 1,799 2,052 2,468 2,481' 2,422 2,580 2,516 50 Middle East oil-exporting countries2,3 2,372 2,829 1,679 1,943' 1,867' 2,104 1,964 1,724 51 Africa 588 587 619 520 524 572 574 551 52 Oil-exporting countries3 233 238 197 170 166 151 135 133 53 All other4 1,128 982 980 1,019 1,074' 1,119 1,078 1,192 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 • September 1988 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1987' 1988 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998844 11998855 11998866 Mar. June Sept. Dec. Mar." 1 Total 29,901 28,876 33,399' 34,094 31,628 31,405 30,055 30,351 2 Payable in dollars 27,304 26,574 31,031R 31,446 28,686 28,880 26,%5 28,376 3 Payable in foreign currencies 2,597 2,302 2,367 2,649 2,941 2,525 3,089 1,975 By type 4 Financial claims 19,254 18,891 23,424 24,235 21,736 21,068 19,571 19,609 5 Deposits 14,621 15,526 17,283 16,955 14,687 15,7% 13,673 12,251 6 Payable in dollars 14,202 14,911 16,726 16,112 13,482 14,919 12,246 11,700 7 Payable in foreign currencies 420 615 557 842 1,205 877 1,426 551 8 Other financial claims 4,633 3,364 6,141 7,280 7,048 5,271 5,899 7,358 9 Payable in dollars 3,190 2,330 4,792 5,937 5,773 4,151 4,790 6,306 10 Payable in foreign currencies 1,442 1,035 1,349 1,343 1,275 1,120 1,109 1,051 11 Commercial claims 10,646 9,986 9,975' 9,859 9,892 10,338 10,483 10,743 12 Trade receivables 9,177 8,6% 8,783'' 8,803 8,849 9,385 9,476 9,694 13 Advance payments and other claims 1,470 1,290 1,192 1,056 1,043 953 1,007 1,049 14 Payable in dollars 9,912 9,333 9,513' 9,397 9,431 9,810 9,929 10,370 15 Payable in foreign currencies 735 652 462R 463 461 528 554 373 By area or country Financial claims 16 Europe 5,762 6,929 8,827 9,421 9,975 9,475 9,066 9,471 17 Belgium-Luxembourg 15 10 41 15 6 26 6 15 18 France 126 184 138 181 169 171 359 327 19 Germany 224 223 111 163 92 99 69 80 20 Netherlands 66 161 151 132 140 157 282 334 21 Switzerland 66 74 185 77 98 44 76 53 22 United Kingdom 4,864 6,007 7,957 8,500 9,271 8,783 8,040 8,416 23 Canada 3,988 3,260 3,%5 3,828 3,344 2,895 2,7% 2,840 24 Latin America and Caribbean 8,216 7,846 9,209 9,574 7,554 7,502 6,757 6,383 25 Bahamas 3,306 2,698 2,628 3,968 2,589 3,328 1,865 2,260 26 Bermuda 6 6 6 3 6 2 7 43 27 Brazil 100 78 73 71 103 102 53 86 28 British West Indies 4,043 4,571 6,078 5,157 4,425 3,687 4,378 3,461 29 Mexico 215 180 174 164 167 173 172 153 30 Venezuela 125 48 21 20 20 18 19 35 31 Asia 961 731 1,316 1,188 789 1,105 830 841 32 Japan 353 475 999 931 452 737 550 672 33 Middle East oil-exporting countries 13 4 7 7 6 10 10 8 34 Africa 210 103 85 84 58 71 65 53 35 Oil-exporting countries 85 29 28 19 9 14 7 7 36 All other4 117 21 22 140 16 20 58 21 Commercial claims 37 Europe 3,801 3,533 3,708' 3,690 3,845 4,115 4,116 4,132 38 Belgium-Luxembourg 165 175 133 145 137 169 177 193 39 France 440 426 414' 419 439 416 593 484 40 Germany 374 346 444' 447 526 545 555 598 41 Netherlands 335 284 164' 154 172 190 132 149 42 Switzerland 271 284 217 1% 187 206 185 173 43 United Kingdom 1,063 898 999' 1,072 1,074 1,227 1,086 1,086 44 Canada 1,021 1,023 934' 977 1,046 1,049 927 1,159 45 Latin America and Caribbean 2,052 1,753 1,857' 1,818 1,728 1,709 1,907 1,940 46 Bahamas 8 13 28 11 14 12 19 14 47 Bermuda 115 93 193' 180 169 143 159 152 48 Brazil 214 206 234' 216 202 230 226 215 49 British West Indies 7 6 39' 25 12 20 25 16 50 Mexico 583 510 412' 451 346 368 363 372 51 Venezuela 206 157 237' 173 203 192 297 319 52 Asia 3,073 2,982 2,755' 2,703 2,642 2,7% 2,892 2,867 53 Japan 1,191 1,016 881 927 952 1,026 1,150 1,105 54 Middle East oil-exporting countries'' 668 638 563' 525 455 434 450 402 55 Africa 470 437 500' 432 378 407 400 418 56 Oil-exporting countries3 134 130 139' 141 123 124 144 154 57 All other4 229 257 222 240 255 262 240 227 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 1987r Jan.- Nov. Dec. Jan. Feb. Mar. Apr. May" May U.S. corporate securities STOCKS 1 Foreign purchases 148,114 249,113 76,008 13,626 13,627 12,923' 16,344' 18,068' 15,020 13,654 2 Foreign sales 129,395 232,849 77,633 20,325 16,630 12,891 16,720 18,482' 13,704 15,836 3 Net purchases, or sales (-) 18,719 16,264 -1,625 -6,699 -3,004 32' -376' -414' 1,315 -2,182 4 Foreign countries 18,927 16,313 -1,516 -6,651 -2,943 64' -344' -444' 1,298 -2,089 5 9,559 1,928 -2,233 -5,948 -2,329 -222' -323' -360' 481 -1,810 6 France 459 905 -308 -541 -393 -96 -29 -7 -1 -175 7 Germany 341 -74 128 -183 -149 67 -37 171 104 -177 8 Netherlands 936 892 -440 -169 34' -72 59 -223 -145 -59 9 Switzerland 1,560 -1,123 -674 — 1,534r -743 -11C -252' -32 -17 -263 10 United Kingdom 4,826 630 -1,336 -3,356' -959 -136 -130 -331' 429 -1,168 11 Canada 816 1,048 -172 169 111 147 -167 -61' 241 -332 1? Latin America and Caribbean 3,031 1,314 358 -561 -50 -143 261 9988'' 228 -86 N Middle East' 976 -1,360 -860 -83 -448 104 -251 --778888'' 24 51 14 Other Asia 3,876 12,896 1,276 -28 -160 159' 70 577 372 99 15 297 123 36 11 -6 7 -18 5 19 23 16 Other countries 373 365 79 -211 -61 12 85 84 -67 -35 17 Nonmonetary international and regional organizations -208 -48 -109 -48 -61 -32 --3333 3311 1177 --9922 BONDS2 18 Foreign purchases 123,169 105,856. 32,804 5,716 6,807' 5,024 6,453 7,799' 5,618 7,909 19 Foreign sales 72,520 78,312 24,954 5,387r 5,432' 5,193 6,039 5,594' 4,433 3,695 20 Net purchases, or sales (-) 50,648 27,544 7,850 328' 1,375' -169 414 2,206' 1,185 4,215 21 Foreign countries 49,801 26,804 8,561 71' 975' 458 532 2,201' 1,186 4,184 77 39,313 21,989 4,905 408r 576' 272 263 1,462' 658 2,249 ?3 389 194 110 -34 -13 51 13 57 7 -18 74 Germany -251 33 789 -26 87' 61 118 260 347 2 75 Netherlands 387 269 253 -16 1 -13 -1 30 58 180 76 Switzerland 4,529 1,587 125 -39 -208' -56 60 -14 -15 151 77 United Kingdom 33,900 19,770 3,478 370r 713' 333 49 976' 228 1,892 78 548 1,296 282 68 114 29 -29 87 104 92 79 Latin America and Caribbean 1,476 2,473 715 -15 292 -22 316 245 100 77 30 Middle East' -2,961 -548 -146 -92 -16' -164 -76 144 -61 10 31 Other Asia 11,270 1,638 2,823 -254 -7' 347 88 270 377 1,741 37 Africa 16 16 -18 -10 3 0 -22 3 4 -2 33 Other countries 139 -61 -1 -33 0 -4 -8 -11' 5 17 34 Nonmonetary international and regional organizations 847 740 -712 257 400 -627 -119 5 --11 3311 Foreign securities 35 Stocks, net purchases, or sales (-) -1,853 1,149 379 706r 840' 511' -678 -724' 372 889988 36 Foreign purchases 49,149 95,263 29,180 7,595r 4,897 4,989 5,717 6,693 5,797 55,,998833 37 Foreign sales 51,002 94,114 28,801 6,889 4,057' 4,478' 6,396' 7,417' 5,425 5,085 38 Bonds, net purchases, or sales (-) -3,685 -7,830 -4,237 -1,929 - 1,49c -1,326' -1,433 -1,179 -137 -162 39 Foreign purchases 166,992 199,010 74,904 17,753 12,322' 12,812 15,858 16,561 15,593 14,081 40 Foreign sales 170,677 206,840 79,141 19,682 13,812 14,137' 17,291 17,740 15,730 14,243 41 Net purchases, or sales (-), of stocks and bonds -5,538 -6,682 -3,858 -1,223' —650' -814' -2,111 -1,903' 235 736 42 Foreign countries -6,493 -6,713 -4,295 -1,122' -336' -879' -2,131 -1,944' 179 480 43 -18,026 -12,083 -3,365 -1,582 -493' -326' -1,627' -1,541 483 -354 44 -876 -4,065 -2,299 -498 107 -654 -648 -366 -406 -225 45 Latin America and Caribbean 3,476 828 1,059 329 2 126 -64 138 538 322 46 10,858 9,338 -8 424' 159 -197 37 -154' -407 712 47 52 89 73 3 10 9 3 48 14 -1 48 Other countries -1,977 -820 244 201 -121 163 169 -70 -43 25 49 Nonmonetary international and regional organizations 955 31 443377 -101 --331144 6655 2200 4411 5566 225566 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 • September 1988 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1988 1987 1988 Country or area 1986 1987' Jan.- Nov. Dec/ Jan. Feb. Mar. Apr. May' May Transactions, net purchases or sales (-) during period1 1 Estimated total2 19,388 25,587 39,050 6,380 2,507 4,645 12,083 9,98c 3,433 8,909 2 Foreign countries2 20,491 30,889 39,136 7,676 4,121 5,740 12,832 9,017r 3,728 7,819 3 Europe2 16,326 23,716 18,000 6,340 1,387 4,321 5,878 3,471 2,332 1,997 4 Belgium-Luxembourg -245 653 1,354 -2 -103 469 242 454 47 143 5 Germany2 7,670 13,330 6,901 1,820 1,157 3,045 1,397 919 1,576 -37 6 Netherlands 1,283 -913 469 314 -78 -337 334 378 117 -22 7 Sweden 132 210 -269 182 28 -61 26 -245 -93 104 8 Switzerland2 329 1,917 -393 -297 -530 118 -1,188 643 344 -309 9 United Kingdom 4,546 3,975 4,817 3,163 1,220 -101 4,373 -244 97 692 10 Other Western Europe 2,613 4,563 5,078 1,158 -307 1,179 678 1,570 238 1,413 11 Eastern Europe 0 -19 42 3 1 9 16 -3 5 14 12 Canada 881 4,526 2,812 679 711 356 559 372 133 1,391 13 Latin America and Caribbean 926 -2,192 1,090 472 -188 219 630 198' 75 -33 14 Venezuela -96 150 34 35 1 0 -1 20 15 0 15 Other Latin America and Caribbean 1,130 -1,142 713 367 120 184 320 169 97 -56 16 Netherlands Antilles -108 -1,200 343 69 -309 36 311 10 -36 23 17 Asia 1,345 4,488 16,719 1,476 2,210 772 5,921 5,463' 713 3,851 18 Japan -22 868 15,590 1,757 2,012 2,979 4,996 4330 687 2,599 19 Africa -54 -56 -22 -29 49 -38 25 5 0 -13 20 All other 1,067 407 537 -1,260 -48 110 -182 -492' 475 626 21 Nonmonetary international and regional organizations -1,104 -5,300 -84 -1,296 -1,614 -1,095 -748 963r -295 1,091 22 International -1,430 -4,387 -114 -1,492 -1,620 -1,023 -879 968' -334 1,155 23 Latin American regional 157 3 8 0 0 8 -2 -5 0 7 Memo 24 Foreign countries 20,491 30,889 39,136 7,676 4,121 5,740 12,832 9,017' 3,728 7,819 25 Official institutions 14,214 31,064 28,438 1,854 1,670 5,118 7,169 8,146' 3,075 4,930 26 Other foreign2 6,283 -181 10,697 5,822 2,451 622 5,663 871' 653 2,888 Oil-exporting countries 27 Middle East3 -1,529 -3,142 -973 -891 338 -809 -296 578 514 -959 28 Africa4 5 16 1 -1 -1 0 0 0 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 July 31, 1988 Rate on July 31, 1988 Rate on July 31, 1988 Country Country Percent 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 3.5 July 1988 France 6.75 July 1988 Norway 8.0 June 1983 6.75 July 1988 Germany, Fed. Rep. of, 3.0 July 1988 Switzerland , 2.5 Dec. 1987 49.0 Mar. 1981 Italy 12.0 Aug. 1987 United Kingdom' 9.53 July 1988 Japan 2.5 Feb. 1987 Venezuela 8.0 Oct. 1985 7.0 Oct. 1983 Netherlands 3.75 July 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 1988 CCoouunnttrryy,, oorr ttyyppee 11998855 11998866 11998877 Jan. Feb. Mar. Apr. May June July 8.27 6.70 7.07 7.11 6.73 6.74 7.05 7.40 7.61 8.09 12.16 10.87 9.65 8.84 9.18 8.83 8.25 8.00 8.91 10.45 9.64 9.18 8.38 8.75 8.58 8.63 8.90 9.07 9.44 9.42 5.40 4.58 3.97 3.40 3.29 3.38 3.37 3.51 3.88 4.88 4.92 4.19 3.67 2.09 1.48 1.61 1.83 2.23 2.82 3.67 6.29 5.56 5.24 4.24 3.98 3.97 3.98 4.07 4.10 4.85 9.91 7.68 8.14 8.19 7.54 7.89 7.99 7.81 7.27 7.32 8 Italy 14.86 12.60 11.15 10.47 10.80 11.11 10.54 10.57 10.90 11.02 9.60 8.04 7.01 6.49 6.19 6.09 6.08 6.05 6.04 6.84 66..4477 4.96 3.87 3.88 3.82 3.82 3.80 3.80 3.82 3.84 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 • September 1988 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1988 Country/currency 1985 1986 1987 Feb. Mar. Apr. May June July 1 Australia/dollar2 70.026 67.093 70.136 71.40 73.29 74.80 77.74 80.76 80.00 2 Austria/schilling 20.676 15.260 12.649 11.920 11.767 11.744 11.912 12.380 12.991 3 Belgium/franc 59.336 44.662 37.357 35.473 35.126 34.962 35.381 36.786 38.649 4 Canada/dollar 1.3658 1.3896 1.3259 1.2682 1.2492 1.2353 1.2373 1.2176 1.2075 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 6.4918 6261 6.4207 6.4938 6.6893 7.0266 7 Finland/markka 6.1971 5.0721 4.4036 4.1159 4.0483 4.0064 4.0297 4.1761 4.3896 8 France/franc 8.9799 6.9256 6.0121 5.7323 5.6893 5.6704 5.7348 5.9310 6.2241 9 Germany/deutsche mark 2.9419 2.1704 1.7981 1.6963 1.6770 1.6710 1.6935 1.7579 1.8466 10 Greece/drachma 138.40 139.93 135.47 135.56 134.60 133.86 135.75 140.69 147.85 11 Hong Kong/dollar 7.7911 7.8037 7.7985 7.7978 7.8028 7.8166 7.8156 7.8073 7.8135 12 India/rupee.. 12.332 12.597 12.943 13.065 12.979 13.158 13.315 13.785 14.079 13 Ireland/punt2 106.62 134.14 148.79 156.87 159.33 159.81 157.78 152.65 145.49 14 Italy/lira 1908.90 1491.16 1297.03 1249.62 1240.67 1240.99 1258.81 1305.56 1367.26 15 Japan/yen 238.47 168.35 144.60 129.17 127.11 124.90 124.79 127.47 133.02 16 Malay sia/ringgit 2.4806 2.5830 2.5185 2.5812 2.5689 2.5743 2.5847 2.5860 2.6267 17 Netherlands/guilder 3.3184 2.4484 2.0263 1.9051 1.8837 1.8749 1.8987 1.9767 2.0827 18 New Zealand/dollar2 ... 49.752 52.456 59.327 66.386 66.239 66.143 68.889 69.996 66.832 19 Norway/krone 8.5933 7.3984 6.7408 6.4167 6.3337 6.2140 6.1875 6.3951 6.7207 20 Portugal/escudo 172.07 149.80 141.20 138.84 137.48 136.77 138.44 143.54 150.42 21 Singapore/dollar 2.2008 2.1782 2.1059 2.0185 2.0133 2.0044 2.0109 2.0285 2.0459 22 South Africa/rand 2.2343 2.2918 2.0385 2.0529 2.1330 2.1428 2.2114 2.2716 2.3985 23 South Korea/won 861.89 884.61 825.93 776.85 757.37 745.31 739.44 732.88 728.67 24 Spain/peseta 169.98 140.04 123.54 114.36 112.38 110.80 112.04 116.25 122.27 25 Sri Lanka/rupee 27.187 27.933 29.471 30.859 30.892 30.939 30.993 31.133 31.782 26 Sweden/krona 8.6031 7.1272 6.3468 6.0524 5.9497 5.8892 5.9091 6.1074 6.3542 27 Switzerland/franc 2.4551 1.7979 1.4918 1.3916 1.3863 1.3823 1.4111 1.4629 1.5343 28 Taiwan/dollar 39.889 37.837 31.756 28.665 28.687 28.695 28.666 28.723 28.726 29 Thailand/baht 27.193 26.314 25.774 25.324 25.232 25.171 25.170 25.280 25.523 30 United Kingdom/pound 129.74 146.77 163.98 175.82 183.30 187.82 186.95 177.68 170.51 MEMO 31 United States/dollar3 ... 143.01 112.22 96.94 91.08 3.73 88.95 89.74 92.58 96.53 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 July 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, 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 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1988 September 1988 A82 Terms of lending at commercial banks, August 1987 January 1988 A70 Terms of lending at commercial banks, November 1987 September 1988 A76 Terms of lending at commercial banks, February 1988 May 1988 A70 Terms of lending at commercial banks, May 1988 September 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 Pro forma balance sheet and income statments for priced service operations, March 31, 1987 August 1988 A70 Special Tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • September 1988 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 2-6, 19881 A. Commercial and Industrial Loans2 Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (tho lo u a s n a s n ds (tho s u iz sa e nds maturity3 Weighted Standard Inter- co u m nd m er it - p lo at a i n o s n of dollars) of dollars) Days e a f v fe e c r t a i g v e e 4 error5 q r u a a n r g ti e l 6 e (p m er e c n e t n t) (percent) ALL BANKS 1 Overnight8 7,170 7.48 7.12-7.79 79.7 7.1 2 One month and under 7,188,787 640 17 8.09 7.51-8.43 82.3 9.9 3 Fixed rate 5,289,163 831 16 7.92 7.51-8.17 85.0 9.9 4 Floating rate 1,899,624 390 21 8.57 7.50-9.41 74.9 9.9 5 6 Ov F e i r x e o d n e r a m te o nth and under a year . 1 4 0 , , 3 4 1 6 4 7 , , 6 2 1 6 1 9 1 1 4 2 6 6 1 % 46 9 9 . . 2 0 0 6 8 8 . . 3 0 4 7 - - 9 9 . . 8 9 5 2 6 6 4 5 . . 9 3 6 8 . . 9 8 7 Floating rate 6,152,658 166 181 9.30 8.78-9.84 64.7 5.6 8 Demand9 16,848,899 256 9.20 8.77-9.92 82.1 6.3 9 Fixed rate 1,988,219 398 7.84 7.36-8.13 83.5 6.8 10 Floating rate 14,860,680 244 9.39 8.84-9.96 81.9 6.3 11 Total short term 51,244,032 340 49 8.49 7.45-9.38 77.8 12 Fixed rate (thousands of dollars)... 28,330,263 590 20 7.83 7.26-8.12 78.7 7.9 13 1-24 253,083 7 117 11.41 10.38-12.47 24.3 1.0 14 25-49 131,771 33 110 10.84 9.87-11.74 27.9 .9 15 50-99 232,049 66 107 10.44 9.65-11.04 31.5 1.1 16 100-499 541,448 208 115 9.62 8.77-10.52 43.8 3.8 17 500-999 379,687 657 65 8.64 7.89-9.47 72.1 8.3 18 1000 and over 26,792,225 7,724 15 7.71 7.25-8.00 80.7 8.1 19 Floating rate (thousands of dollars) 22,913,769 223 143 9.30 8.83-9.92 76.7 6.4 20 1-24 468,970 9 157 10.59 9.92-11.07 69.3 .5 21 25-49 546,671 34 152 10.37 9.65-11.02 73.1 1.8 22 50-99 856,947 66 169 10.17 9.42-10.92 78.1 2.3 23 100-499 3,391,547 199 159 9.83 8.94-10.47 80.4 5.1 24 500-999 2,026,198 653 182 9.56 8.84-10.20 88.4 8.9 25 1000 and over 15,623,437 4,729 133 9.02 8.24-9.84 74.7 6.9 Months 26 Total long term 3,655,503 227 9.05 7.71-9.93 56.5 8.7 27 Fixed rate (thousands of dollars)... 1,082,638 187 9.04 7.58-9.72 57.5 .3 28 1-99 94,114 18 11.77 10.47-12.40 15.9 .9 29 100-499 105,145 215 10.37 9.72-11.83 20.3 2.8 30 500-999 24,397 673 10.05 8.39-10.75 80.5 .0 31 1000 and over 858,982 5,587 8.55 7.58-9.31 66.0 .0 32 Floating rate (thousands of dollars) 2,572,865 249 9.06 7.71-10.06 56.1 12.2 33 1-99 197,771 26 10.62 9.84-11.30 30.1 4.4 34 100-499 435,329 215 10.04 9.38-10.75 31.7 5.4 35 500-999 262,774 673 9.77 9.38-9.96 41.7 9.3 36 1000 and over 1,676,990 4,638 8.51 7.55-9.38 67.7 15.3 Loan rate (percent) Days Prime rate1 Effective4 Nominal LOANS MADE BELOW PRIME12 37 Overnight8 16,258,213 9,193 7.43 7.17 8.50 79.2 7.9 38 One month and under 6,043,197 3,422 15 7.76 7.49 8.52 85.1 12.1 39 Over one month and under a year 3,571,462 709 128 8.02 7.78 8.66 77.7 7.0 40 Demand9 4,245,944 1,036 7.69 7.44 8.58 62.7 5.4 41 Total short term 30,118,817 2,378 22 7.60 7.34 8.53 77.9 8.3 42 Fixed rate 25,180,980 3,713 13 7.57 7.31 8.51 80.2 43 Floating rate 4,937,837 839 109 7.76 7.51 8.65 65.9 5.7 Months 44 Total long term 1,464,028 1,418 38 7.71 7.50 8.59 84.0 6.2 45 Fixed rate 526,069 1,091 7.90 7.75 8.68 60.8 .0 46 Floating rate 937,959 1,703 7.61 7.35 8.54 97.0 9.7 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued A. Commercial and Industrial Loans—Continued Weighted Loan rate (percent) Loans MMoosstt AAmmoouunntt ooff AAvveerraaggee average mmaaddee PPaarrttiiccii-- common Characteristic ( o t f h o l d o u o a s l n a la s n r d s s ) ( o t f h o d s u o iz s l a e la n r d s s ) mmaa D ttuu a rr y ii s tt yy33 WW e a f v f ee e e ii c gg r t a hh i g tt v ee e e dd 4 St ee a rr n rroo da rr55 r d q r II u a nn a n tt r ee g t rr i e -- l 6 e ( c p o u m e m n r e c d m n e e t n i r t t - ) (p pp l e o aa r tt a c ii n oo e s n nn t ) pricing LARGE BANKS 1 Overnight8 12,554,893 9,907 * 7.52 .09 7.12-7.82 75.9 8.6 Fed funds 2 One month and under 5,093,473 2,716 17 8.06 .25 7.57-8.41 85.3 8.9 Domestic 3 Fixed rate 3,888,397 3,942 16 7.89 .07 7.57-8.13 84.8 7.6 Domestic 4 Floating rate 1,205,076 1,356 22 8.61 .41 7.61-9.93 86.6 13.2 Prime 5 Over one month and under a year .... 6,209,894 682 134 8.95 .15 8.18-9.73 68.2 4.8 Prime 6 Fixed rate 2,618,931 1,198 88 8.74 .07 8.03-9.47 73.9 8.7 Foreign 7 Floating rate 3,590,963 519 168 9.11 .22 8.71-9.73 64.0 1.9 Prime 8 Demand9 10,081,513 638 * 9.06 .16 8.06-9.92 76.5 6.7 Prime 9 Fixed rate 1,174,974 2,511 * 7.66 .22 7.28-7.99 75.5 4.1 Other 10 Floating rate 8,906,539 581 * 9.25 .15 8.77-9.92 76.6 7.1 Prime 11 Total short term 33,939,773 1,210 39 8.32 .16 7.38-9.04 76.1 7.4 Fed funds 12 Fixed rate (thousands of dollars) 20,237,195 4,124 16 7.76 .07 7.25-8.06 77.4 8.1 Fed funds 13 1-24 10,747 10 85 10.59 .20 9.85-11.05 31.8 4.1 Prime 14 25-49 11,525 32 74 10.21 .21 9.65-10.92 24.0 2.0 Prime 15 50-99 27,590 64 78 9.94 .23 9.38-10.39 37.7 .8 Prime 16 100-499 130,691 220 56 9.22 .22 8.44-9.93 61.8 3.4 Prime 17 500-999 162,000 655 47 8.89 .18 8.11-9.85 77.0 4.6 None 18 1000 and over 19,894,643 8,905 15 7.73 .08 7.25-8.06 77.6 8.2 Fed funds 19 Floating rate (thousands of dollars) ... 13,702,578 592 131 9.16 .17 8.77-9.91 74.2 6.3 Prime 20 1-24 87,752 11 173 10.25 .17 9.38-11.02 85.7 .1 Prime 21 25-49 117,921 34 177 10.19 .17 9.38-11.02 84.1 .1 Prime 22 50-99 220,461 67 169 10.02 .11 9.38-10.47 84.7 .7 Prime 23 100-499 1,226,625 211 163 9.68 .07 8.84-10.24 88.1 3.2 Prime 24 500-999 760,919 659 137 9.50 .03 8.84-9.96 86.7 3.5 Prime 25 1000 and over 11,288,901 6,511 127 9.04 .21 8.17-9.84 71.5 7.0 Prime Months 26 Total long term 2,025,128 1,052 47 8.54 .37 7.44-9.31 71.4 5.9 Domestic 27 Fixed rate (thousands of dollars)... 659,429 1,282 49 8.67 .27 7.40-9.31 61.6 .0 Fed funds 28 1-99 8,001 24 46 11.65 .46 10.47-12.68 32.8 3.2 Other 29 100-499 17,778 229 54 10.05 .40 9.38-11.24 51.3 .0 Other 30 500-999 10,958 659 55 11.14 1.61 9.92-10.75 93.4 .0 Other 31 1000 and over 622,693 6,955 49 8.55 .25 7.40-9.31 61.7 .0 Fed funds 32 Floating rate (thousands of dollars) 1,365,699 968 46 8.48 .45 7.44-9.38 76.2 8.8 Domestic 33 1-99 23,817 29 35 10.64 .25 9.65-11.57 61.2 .5 Prime 34 100-499 76,668 220 39 9.98 .24 9.11-10.47 68.1 4.3 Prime 35 500-999 65,457 684 58 9.75 .27 9.11-10.38 70.5 .0 Prime 36 1000 and over 1,199,757 7,781 46 8.27 .42 7.41-8.84 77.3 9.7 Domestic Loan rate (percent) DDaayyss Prime rate Effective4 Nominal10 LOANS MADE BELOW PRIME12 37 Overnight8 12,097,787 11,188 * 7.46 7.20 8.50 75.2 8.9 38 One month and under 4,375,543 5,981 15 7.79 7.51 8.50 87.1 7.8 39 Over one month and under a year 2,339,880 4,401 121 7.94 7.71 8.50 76.1 3.7 40 Demand9 2,873,816 4,746 * 7.56 7.32 8.50 50.5 3.4 41 Total short term 21,687,026 7,351 19 7.59 7.33 8.50 74.4 7.4 42 Fixed rate 18,378,015 8,030 13 7.59 7.32 8.50 76.4 8.0 43 Floating rate 3,309,011 5,002 97 7.63 7.39 8.50 63.4 4.1 Months 44 Total long term 1,125,739 6,102 39 7.57 7.37 8.50 84.3 .1 4 4 5 6 F F i l x o e a d ti n r g a t r e a te .. 3 80 2 1 3 , , 8 9 2 1 1 7 4 7 , , 0 6 6 5 3 3 4 3 0 6 7 7 . . 5 6 3 8 7 7 . . 2 6 7 2 8 8. . 5 5 0 0 4 99 7 . . 1 5 . . 0 1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • September 1988 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 2-6, 1988Continued A. Commercial and Industrial Loans—Continued2 Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (tho lo u a s n a s n ds (tho s u iz sa e nds maturity3 Weighted Standard Inter- co u m nd m er it - p lo at a i n o s n of dollars) of dollars) Days e a f v fe e c ra ti g v e e 4 error5 q r u a a n r g ti e l 6 e (p m er e c n e t n t) (percent) OTHER BANKS 1 Overnight8 4,184,184 3,920 7.36 6.98-7.59 2 One month and under 2,095,314 224 17 8.17 7.43-8.44 75.2 12.3 3 Fixed rate 1,400,765 261 16 8.00 7.43-8.33 85.4 16.4 4 Floating rate 694,549 175 19 8.50 7.50-9.40 54.6 4.1 5 Over one mo nth and under a year . 4,257,374 68 163 9.56 8.77-10.47 60.2 10.1 6 Fixed rate 1,695,680 53 109 9.55 8.21-10.92 52.0 9.0 7 Floating rate 2,561,695 85 199 9.57 8.84-9.96 65.6 10.8 8 Demand9 6,767,386 135 9.42 8.84-9.96 90.5 5.7 9 Fixed rate 813,245 180 8.11 7.60-8.52 95.1 10.7 10 Floating rate 5,954,141 131 9.59 8.84-10.20 89.9 5.1 11 Total short term 17,304,259 141 70 8.80 7.52-9.92 81.3 12 Fixed rate (thousands of dollars)... 8,093,067 188 29 8.01 7.28-8.26 82.2 7.1 13 1-24 242,336 7 119 11.45 10.38-12.47 23.9 14 25-49 120,247 33 113 10.90 9.92-11.91 28.2 15 50-99 204,459 67 111 10.51 9.84-11.04 30.7 1.2 16 100-499 410,757 205 134 9.75 8.78-11.02 38.1 4.0 17 500-999 217,687 659 8.45 7.73-9.11 68.5 11.1 18 1000 and over 6,897,582 5,587 7.64 7.22-7.92 7.7 19 Floating rate (thousands of dollars) 9,211,191 116 161 9.50 8.84-10.09 80.5 6.6 20 1-24 381,218 9 154 10.67 9.92-11.07 65.6 .6 21 25-49 428,750 34 145 10.41 9.84-11.02 70.0 2.2 22 50-99 636,486 66 169 10.23 9.65-11.02 75.9 2.9 23 100-499 2,164,922 193 157 9.91 9.11-10.47 76.0 6.2 24 500-999 1,265,279 649 198 9.59 8.87-10.20 89.4 12.1 25 1000 and over 4,334,536 2,761 151 8.50-9.69 83.1 6.7 Months 26 Total long term 1,630,375 115 9.69 8.84-10.47 37.9 12.1 27 Fixed rate (thousands of dollars)... 423,209 80 9.62 7.58-11.02 51.2 28 1-99 86,113 18 11.79 10.47-12.40 14.3 .7 29 100-499 87,367 212 10.44 9.92-11.83 14.0 3.3 30 500-999 13,440 685 9.17 8.39-10.75 70.0 .0 31 1000 and over 236,290 3,680 8.56 7.58-9.40 77.4 .0 32 Floating rate (thousands of dollars) 1,207,166 135 9.71 8.87-10.47 33.3 16.0 33 1-99 173,955 26 10.62 9.84-11.30 25.8 4.9 34 100-499 358,661 214 10.05 9.38-10.75 23.9 5.7 35 500-999 197,317 670 9.78 9.38-9.93 32.1 12.4 36 1000 and over 477,232 2,301 9.09 8.84-9.84 43.5 29.4 Loan rate (percent) Days Prime rate" Effective4 Nominal LOANS MADE BELOW PRIME12 37 Overnight8 4,160,426 6,054 7.35 7.09 8.50 90.9 5.1 38 One month and under 1,667,654 1,612 15 7.70 7.42 8.56 79.7 23.1 39 Over one month and under a year 1,231,582 274 140 8.17 7.91 8.96 13.3 40 Demand9 1,372,128 393 7.95 7.69 8.74 88.2 9.6 41 Total short term 8,431,791 868 29 7.63 7.37 8.62 86.8 10.6 42 Fixed rate 6,802,964 1,514 14 7.54 7.28 8.54 90.6 11.0 43 Floating rate 1,628,826 312 127 8.03 7.76 8.94 70.9 9.0 Months 44 Total long term 338,290 399 35 8.90 83.1 26.6 45 Fixed rate 202,152 503 8.25 7.97 8.98 82.2 .0 46 Floating rate 136,138 305 8.07 7.80 8.78 84.4 66.2 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 4.23—Continued B. Construction and Land Development Loans1 Loan rate (percent) AAmmoouunntt ooff AAvveerraaggee WWeeiigghhtteedd LLooaannss mmaaddee PPaarrttiiccii-llooaannss ssiizzee aavveerraaggee uunnddeerr ppaattiioonn CChhaarraacctteerriissttiicc ((tthhoouussaannddss ((tthhoouussaannddss mmaattuurriittyy Weighted Standard Inter- ccoommmmiittmmeenntt llooaannss ooff ddoollllaarrss)) ooff ddoollllaarrss)) ((mmoonntthhss))33 e a f v fe e c r t a i g v e e 4 error5 q r u a a n r g ti e l 6 e ((ppeerrcceenntt)) ((ppeerrcceenntt)) ALL BANKS 1 Total 4,023,264 257 11 9.29 .22 8.84-9.92 88.3 16.6 ? Fixed rate (thousands of dollars) 1,350,175 375 3 8.69 .52 7.37-9.28 95.5 20.9 1-24 21,102 11 20 11.66 .21 11.02-12.13 54.4 .0 4 25-49 20,756 38 9 11.62 .27 11.02-12.13 48.6 .4 S 50-99 21,944 63 8 11.81 .37 11.57-13.31 45.6 .9 6 100-499 98,581 147 20 10.82 .29 10.38-11.57 79.9 4.6 7 500 and over 1,187,793 9,437 2 8.35 .68 7.37-9.08 99.3 23.4 8 Floating rate (thousands of dollars) ... 2,673,089 222 18 9.59 .18 8.84-10.24 84.7 14.4 9 1-24 56,900 10 10 10.75 .12 9.93-11.02 87.4 2.0 10 25-49 69,211 35 9 10.60 .14 9.92-11.02 79.6 2.9 11 50-99 93,560 67 11 10.46 .14 9.92-11.02 79.2 7.5 1? 100-499 515,670 222 10 10.71 .19 9.96-11.02 62.0 5.6 13 500 and over 1,937,747 3,954 23 9.18 .16 8.84-9.42 91.1 17.5 By type of construction 14 Single family 507,335 64 10 10.38 .24 99..9922--1111..0077 8822..44 88..99 IS Multifamily 187,055 242 12 9.35 .18 9.22-9.92 89.2 6.2 16 Nonresidential 3,328,873 476 12 9.12 .24 8.36-9.69 89.2 18.4 LARGE BANKS13 1 Total 2,891,114 1,421 11 8.83 .26 8.36-9.38 99.4 20.8 7 Fixed rate (thousands of dollars) 1,123,599 4,613 1 8.29 .75 7.37-9.08 99.8 24.9 3 1-24 815 9 10 10.72 .21 10.20-11.02 72.8 .0 4 25-49 914 34 23 10.25 .44 9.42-10.75 80.8 9.2 50-99 1,199 64 22 9.48 .30 8.84-9.96 75.8 17.4 6 100-499 4,771 236 9 9.08 .44 8.50-9.29 70.4 24.1 7 500 and over 1,115,900 12,369 1 8.28 1.03 7.37-9.08 100.0 24.9 8 Floating rate (thousands of dollars) ... 1,767,515 987 24 9.18 .20 8.84-9.42 99.1 18.2 9 1-24 6,409 10 12 10.22 .15 9.65-10.75 93.7 9.8 10 25-49 8,585 35 15 10.11 .11 9.79-10.47 94.7 6.3 11 50-99 14,558 70 18 9.96 .17 9.38-10.24 95.0 9.6 1? 100-499 86,608 229 16 9.98 .20 9.42-10.47 95.1 12.4 13 500 and over 1,651,356 5,458 25 9.12 .25 8.84-9.42 99.4 18.7 By type of construction 14 Single family 92,235 227 5 9.16 .36 88..8855--1100..2200 9977..11 4455..44 Multifamily 114,789 324 10 9.00 .30 7.37-9.65 97.2 4.2 16 Nonresidential 2,684,090 2,106 12 8.81 .29 8.33-9.17 99.5 20.7 OTHER BANKS13 1 Total 1,132,150 83 12 10.44 .20 9.69-11.02 60.2 6.0 7 Fixed rate (thousands of dollars) 226,576 67 13 10.65 .40 9.22-11.63 74.1 1.5 3 1-24 20,287 11 20 11.70 .28 11.02-12.13 53.7 .0 4 25-49 19,842 38 9 11.69 .25 11.35-12.13 47.1 .0 50-99 20,745 63 7 11.95 .28 11.57-13.31 43.9 .0 6 100-499 93,810 145 20 10.91 .26 10.38-11.57 80.4 3.6 7 500 and over * * * * * 8 Floating rate (thousands of dollars) ... 905,574 88 11 10.39 .19 9.69-11.02 56.7 7.1 1-24 50,491 10 9 10.81 .15 10.20-11.02 86.6 1.0 10 25-49 60,626 35 8 10.67 .22 9.92-11.07 77.5 2.4 11 50-99 79,003 67 10 10.55 .19 9.92-11.02 76.3 4.8 1? 100-499 429,062 220 9 10.86 .19 10.47-11.07 55.4 6.6 13 500 and over 286,392 1,527 16 9.51 .19 9.11-9.92 43.6 10.5 By type of construction 14 Single family 415,101 55 11 10.65 .21 9.96-11.48 79.1 ..88 15 Multifamily 72,266 173 14 9.91 .18 9.22-10.47 76.4 99..55 16 Nonresidential 644,783 113 12 10.37 .28 9.38-11.02 46.1 8.9 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • September 1988 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 2-6, 1988'—Continued C. Loans to Farmers14 Size class of loans (thousands) Characteristic All sizes $1-9 $10-24 $25-49 $50-99 $100-249 $250 and over ALL BANKS 1 Amount of loans (thousands of dollars) $1,085,959 $132,173 $137,358 $140,949 $124,976 $186,371 $364,130 2 Number of loans 52,897 35,635 9,482 4,042 1,900 1,274 563 i Weighted average maturity (months)3 13.1 8.3 12.3 11.8 16.3 6.1 19.9 4 Weighted average interest rate (percent)4 10.68 11.51 11.37 11.38 10.74 10.58 9.88 5 Standard error5 .18 .37 .16 .27 .46 .32 .45 6 Interquartile rante6 9.75-11.50 10.78-12.13 10.75-12.15 10.73-12.10 9.96-11.38 9.96-11.02 8.95-10.52 By purpose of loan V Feeder livestock 10.53 11.42 11.19 11.50 11.37 10.79 9.84 8 Other livestock 10.56 11.77 11.62 12.36 9.99 9 Other current operating expenses 10.89 11.43 11.38 11.16 10.77 10.44 10.05 10 Farm machinery and equipment 11.30 12.03 11.70 * * * 11 Farm real estate 9.75 10.89 11.20 * * * » 12 Other 10.42 11.78 11.12 11.47 10.81 10.67 10.07 Percentage of amount of loans 13 With floating rates 57.5 56.0 51.0 58.1 67.1 61.3 55.1 14 Made under commitment 48.3 42.8 37.2 44.2 64.6 39.0 55.1 By purpose of loan 15 Feeder livestock 22.1 8.7 8.9 16.1 21.6 29.9 30.5 16 Other livestock 5.9 3.6 5.4 6.7 12.4 * * 17 Other current operating expenses 45.6 71.0 63.1 61.5 44.0 50.7 21.4 18 Farm machinery and equipment 3.9 7.6 9.5 * * * 19 Farm real estate 3.6 1.7 3.1 * * * * 20 Other 18.9 7.5 9.8 8.9 9.5 13.8 36.3 LARGE BANKS14 1 Amount of loans (thousands of dollars) $363,068 $9,236 $14,104 $18,076 $30,452 $53,489 $237,710 2 Number of loans 4,850 2,310 951 540 460 367 222 3 Weighted average maturity (months)3 6.9 8.2 10.1 11.9 9.9 8.1 5.1 4 Weighted average interest rate (percent)4 9.70 10.80 10.47 10.44 10.19 9.97 9.43 5 Standard error5 .16 .34 .12 .21 .44 .24 .21 6 Interquartile rante6 9.08-10.38 10.16-11.30 9.84-11.02 9.92-10.92 9.58-10.75 9.38-10.65 8.77-9.92 By purpose of loan 7 Feeder livestock 9.62 10.11 10.32 10.17 9.92 9.96 9.52 8 Other livestock 9.77 11.06 * * 10.94 * y Other current operating expenses 9.86 10.79 10.45 10.27 10.15 9.94 9.43 10 Farm machinery and equipment 10.66 12.08 10.74 * * * * 11 Farm real estate 10.59 11.43 10.59 * * * * 12 Other 9.52 10.57 10.47 10.85 10.09 10.25 9.29 Percentage of amount of loans 13 With floating rates 76.6 89.0 90.8 98.1 93.8 94.4 67.5 14 Made under commitment 79.2 82.8 80.8 81.6 86.2 92.1 75.0 By purpose of loan 15 Feeder livestock 33.8 8.3 7.2 9.8 20.2 31.1 40.5 16 Other livestock 7.0 4.2 * * 8.7 * 17 Other current operating expenses 32.8 70.6 68.6 64.5 44.6 48.1 21.9 18 Farm machinery and equipment .9 4.2 4.7 * * * * 19 Farm real estate .8 2.9 3.0 * * * * 20 Other 24.7 9.8 15.3 15.4 20.4 15.6 29.1 OTHER BANKS14 1 Amount of loans (thousands of dollars) $722,891 $122,937 $123,254 $122,873 $94,525 $132,882 * 2 Number of loans 48,047 33,326 8,531 3,501 1,441 907 * 3 Weighted average maturity (months) 14.7 8.3 12.5 11.8 17.7 5.7 * 4 Weighted average interest rate (percent)4 11.17 11.56 11.48 11.52 10.92 10.82 * 5 Standard error5 .07 .14 .10 .15 .14 .20 * 6 Interquartile rante6 10.52-12.03 10.78-12.19 10.78-12.19 10.77-12.13 10.50-11.50 10.52-11.23 * By purpose of loan 7 Feeder livestock 11.49 11.51 11.27 11.61 * * * 8 Other livestock 11.08 11.83 11.64 * * * * 9 Other current operating expenses 11.22 11.48 11.49 11.30 10.97 10.62 • 10 Farm machinery and equipment 11.35 12.03 11.75 * * * * 11 Farm real estate 9.68 * * * * * * 12 Other 11.11 11.91 11.25 11.65 * * * For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 4.23—Continued C. Loans to Farmers14—Continued Size class of loans (thousands) Characteristic All sizes $1-9 $10-24 $25-49 $50-99 $100-249 $250 and over Percentage of amount of loans 13 With floating rates 48.0 53.5 46.4 52.2 58.5 48.0 * 14 Made under commitment 32.7 39.8 32.2 38.7 57.6 17.6 * By purpose of loan 15 Feeder livestock 16.3 8.7 9.1 17.0 * * 16 Other livestock 5.3 3.6 5.9 * * * * 17 Other current operating expenses 51.9 71.0 62.5 61.0 43.8 51.8 # 18 Farm machinery and equipment 5.5 7.9 10.1 * * * * 19 Farm real estate 5.0 * * * * * # 20 Other 16.1 7.3 9.2 7.9 * * * •Fewer than 10 sample loans. 6. The interquartile range shows the interest rate range that encompasses the 1. The survey of terms of bank lending to business collects data on gross loan middle 50 percent of the total dollar amount of loans made. extensions made during the first full business week in the mid-month of each 7. The most common base rate is that rate used to price the largest dollar quarter by a sample of 340 commercial banks of all sizes. A subsample of 250 volume of loans. Base pricing rates include the prime rate (sometimes referred to banks also report loans to farmers. The sample data are blown up to estimate the as a bank's "basic" or "reference" rate); the federal funds rate; domestic money lending terms at all insured commercial banks during that week. The estimated market rates other than the federal funds rate; foreign money market rates; and terms of bank lending are not intended for use in collecting the terms of loans other base rates not included in the foregoing classifications. extended over the entire quarter or residing in the portfolios of those banks. 8. Overnight loans are loans that mature on the following business day. Construction and land development loans include both unsecured loans and loans 9. Demand loans have no stated date of maturity. secured by real estate. Thus, some of the construction and land development 10. Nominal (not compounded) annual interest rates are calculated from survey loans would be reported on the statement of condition as real estate loans and the data on the stated rate and other terms of the loan and weighted by loan size. remainder as business loans. Mortgage loans, purchased loans, foreign loans, and 11. The prime rate reported by each bank is weighted by the volume of loans loans of less than $1,000 are excluded from the survey. extended and then averaged. As of Dec. 31, 1987, assets of most of the large banks were at least $6.0 billion. 12. The proportion of loans made at rates below prime may vary substantially For all insured banks total assets averaged $220 million. from the proportion of such loans outstanding in banks' portfolios. 2. Beginning with the August 1986 survey respondent banks provide informa- 13. 58.5 percent of construction and land development loans were priced tion on the type of base rate used to price each commercial and industrial loan relative to the prime rate. made during the survey week. This reporting change is reflected in the new 14. Among banks reporting loans to farmers (Table C), most "large banks" column on the most common base pricing rate in table A and footnote 13 from (survey strata 1 to 3) had over $600 million in total assets, and most "other banks" table B. (survey strata 4 to 6) had total assets below $600 million. 3. Average maturities are weighted by loan size and exclude demand loans. The survey of terms of bank lending to farmers now includes loans secured by 4. Effective (compounded) annual interest rates are calculated from the stated farm real estate. In addition, the categories describing the purpose of farm loans rate and other terms of the loan and weighted by loan size. have now been expanded to include "purchase or improve farm real estate." In 5. The chances are about two out of three that the average rate shown would previous surveys, the purpose of such loans was reported as "other." differ by less than this amount from the average rate that would be found by a complete survey of lending at all banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • September 1988 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-6, 1987*1 A. Commercial and Industrial Loans2 Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (tho lo u a s n a s n ds (tho s u i s z a e n ds maturity3 Weighted Standard Inter- co u m nd m er it - p lo at a i n o s n of dollars) of dollars) Days e a f v fe e c r t a i g v e e 4 error5 q r u a a n r g t e il 6 e (p m er e c n e t n t) (percent) ALL BANKS 1 Overnight8 13,810,386 7.04-7.52 76.4 2.9 2 One month and under 8,124,091 722 18 8.24 7.43-8.92 77.0 13.7 3 Fixed rate 6,445,038 858 18 8.14 7.41-8.43 79.9 12.8 4 Floating rate 1,679,053 449 21 8.61 7.58-9.66 65.7 17.3 5 Over one month and under a year . 7,171,267 116 141 9.35 8.21-10.38 71.2 5.3 6 Fixed rate 3,463,711 114 108 8.98 7.92-9.53 67.9 4.7 7 Floating rate 3,707,556 118 173 9.70 9.11-10.52 74.2 5.9 8 Demand9 14,730,618 251 9.20 7.70-10.33 82.3 4.5 9 Fixed rate 2,924,068 1,108 7.77 7.12-8.12 86.7 4.5 10 Floating rate 11,806,550 211 9.56 9.11-10.47 81.2 4.6 11 Total short term 43,836,363 327 40 8.47 7.26-9.52 77.7 12 Fixed rate (thousands of dollars)... 26,643,151 624 21 7.82 7.18-8.10 77.3 5.7 13 1-24 225,393 7 97 11.87 10.92-12.75 16.0 1.5 14 25-49 124,529 33 110 11.24 10.39-12.34 18.3 .2 15 50-99 144,484 65 101 10.76 10.20-11.46 28.5 1.2 16 100-499 409,013 194 86 9.55 8.17-10.75 47.5 4.0 17 500-999 304,555 664 46 8.72 7.79-9.42 76.9 7.4 18 1000 and over 25,435,178 7,934 18 7.71 7.15-8.04 78.9 5.8 19 Floating rate (thousands of dollars) 17,193,212 188 125 9.49 8.80-10.47 78.2 6.1 20 1-24 423,758 10 148 10.95 10.20-11.57 70.9 .5 21 25-49 522,885 34 156 10.77 10.11-11.52 76.0 1.6 22 50-99 815,717 66 147 10.61 9.92-11.30 78.8 2.3 23 100-499 3,149,016 194 146 10.23 9.42-10.75 82.6 6.3 24 500-999 1,531,585 649 151 9.88 9.38-10.38 84.4 3.4 25 1000 and over 10,750,251 3,945 111 9.02 7.64-10.11 76.4 7.1 Months 26 Total long term 3,574,722 196 9.09 7.50-10.38 68.7 3.8 27 Fixed rate (thousands of dollars)... 1,665,510 214 8.67 7.12-10.06 75.2 1.8 28 1-99 114,695 17 11.93 10.47-12.50 6.5 .2 29 100-499 147,583 181 10.67 10.20-11.30 22.2 1.1 30 500-999 63,842 682 10.23 9.00-11.79 45.2 11.8 31 1000 and over 1,339,390 7,592 8.10 7.06-8.79 88.4 1.6 32 Floating rate (thousands of dollars) 1,909,211 182 9.45 8.46-10.47 63.1 5.5 33 1-99 197,181 24 11.28 10.47-11.85 21.4 .8 34 100-499 336,465 207 10.39 9.69-11.02 46.5 8.2 35 500-999 156,232 630 10.17 9.31-10.92 59.1 15.5 36 1000 and over 1,219,334 4,091 8.80 7.34-9.65 74.9 4.3 Loan rate (percent) Days Prime rate Effective4 Nominal LOANS MADE BELOW PRIME12 37 Overnight8 13,390,305 9,646 7.31 7.05 8.93 76.0 3.0 38 One month and under 6,603,103 2,608 17 7.82 7.54 8.96 76.7 18.2 39 Over one month and under a year 3,308,257 721 139 8.10 7.85 8.97 77.4 5.1 40 Demand9 5,299,669 1,599 7.53 7.34 8.97 72.2 3.6 41 Total short term 28,601,335 2,419 25 7.56 7.31 8.95 75.6 6.9 42 Fixed rate 23,904,745 3,398 17 7.54 7.28 8.94 77.5 6.7 43 Floating rate 4,6%,590 981 111 7.68 7.44 9.00 66.2 7.9 Months 44 Total long term 1,732,758 1,681 7.66 7.50 8.98 90.1 3.2 45 Fixed rate 1,112,425 1,754 7.63 7.53 9.03 89.8 2.3 46 Floating rate 620,333 1,566 7.71 7.45 90.6 4.9 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued A. Commercial and Industrial Loans2—Continued Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (tho lo u a s n a s n ds (tho s u iz sa e nds maturity3 Weighted Standard Inter- co u m nd m e i r t p lo at a i n o s n of dollars) of dollars) Days e a f v fe e c r t a i g v e e 4 error5 q r u a a n r g t e il 6 e (p m er e c n e t n t) (percent) LARGE BANKS 1 Overnight8 10,997,573 9,416 7.40 7.04-7.55 72.5 2 One month and under 6,697,974 3,392 19 8.20 7.41-8.59 77.9 15.4 3 Fixed rate 5,349,302 4,829 18 8.16 7.43-8.43 79.9 14.5 4 Floating rate 1,348,672 1,555 21 8.33 7.11-9.53 69.8 19.0 5 Over one month and under a year 4,020,981 631 134 7.66-9.51 80.2 3.7 6 Fixed rate 2,458,609 1,179 108 8.73 7.85-9.42 77.1 4.8 7 Floating rate 1,562,372 364 174 8.92 7.48-9.92 85.0 2.0 8 Demand9 8,213,609 492 9.00 7.60-10.12 76.3 4.7 9 Fixed rate 1,954,635 2,354 7.75 7.12-8.12 85.9 2.8 10 Floating rate 6,258,974 394 9.39 8.43-10.38 73.2 5.4 11 Total short term 29,930,137 1,141 8.20 7.25-9.19 75.8 5.8 12 Fixed rate (thousands of dollars) 20,760,067 4,000 20 7.79 7.20-8.10 76.2 5.4 13 1-24 13,136 10 87 11.05 10.38-11.57 29.7 2.6 14 25-49 13,159 33 79 10.63 9.96-11.30 19.6 1.4 15 50-99 25,229 63 81 10.49 9.93-11.02 28.7 1.2 16 100-499 125,320 215 64 9.61 8.86-10.39 57.4 3.5 17 500-999 162,214 669 41 8.80 7.90-9.48 78.2 9.3 18 1000 and over 20,421,008 9,103 19 7.76 7.19-8.10 76.5 5.4 19 Floating rate (thousands of dollars) ... 9,170,070 436 103 9.15 7.91-10.20 74.7 6.8 20 1-24 78,850 11 135 10.71 9.92-11.35 84.8 .2 21 25-49 111,763 34 126 10.62 9.92-11.30 82.0 .7 22 50-99 210,836 67 117 10.48 9.69-11.02 82.9 1.0 2 2 3 4 5 1 0 0 0 0 - - 9 4 9 9 9 9 1, 6 1 6 0 3 1 , , 0 9 3 0 4 7 2 65 0 7 9 1 1 1 3 8 4 1 9 0 . . 8 12 7 9 9 . . 3 3 8 8 - - 1 1 0 0 . . 7 4 5 7 8 87 5 . . 1 0 2 2 . . 3 1 25 1000 and over 7,003,680 99 8.85 7.58-9.84 71.5 8.3 Months 26 Total long term 2,055,882 1,125 8.40 .45 7.20-9.38 89.5 1.7 27 Fixed rate (thousands of dollars)... 1,055,659 2,860 8.05 .52 7.06-8.79 98.4 .5 28 1-99 5,259 26 12.97 1.17 10.75-12.68 27.8 .0 29 100-499 13,791 223 10.80 .52 10.47-11.24 60.0 .0 30 500-999 15,286 701 9.35 .63 8.43-10.75 57.8 33.9 31 1000 and over 1,021,324 12,578 7.% .50 7.06-8.25 99.9 .0 32 Floating rate (thousands of dollars) 1,000,223 686 8.78 .35 7.34-9.92 80.1 2.9 33 1-99 23,662 31 10.89 .25 9.92-11.57 51.6 .2 34 100-499 107,403 239 10.20 .19 9.38-10.79 72.4 12.4 35 500-999 60,311 641 9.98 .39 9.31-10.75 85.6 9.6 36 1000 and over 808,847 5,579 8.43 .37 7.25-9.31 81.5 1.2 Loan rate (percent) Days Effective4 Nominal LOANS MADE BELOW PRIME12 37 Overnight8 10,691,287 10,856 7.34 7.08 8.94 72.0 1.6 38 One month and under 5,581,828 6,083 17 7.85 7.57 8.95 75.3 18.2 39 Over one month and under a year 2,565,267 5,252 144 8.04 7.80 8.90 80.0 4.1 40 Demand9 3,373,412 3,885 7.52 7.31 8.94 60.4 2.7 41 Total short term 22,211,793 6,815 25 7.58 7.32 8.94 72.0 6.2 42 Fixed rate 18,872,605 7,773 18 7.57 7.31 8.94 74.8 5.7 43 Floating rate 3,339,188 4,018 105 7.62 7.38 8.92 55.9 9.2 Months 44 Total long term 1,359,008 6,988 40 7.55 7.41 8.94 97.3 45 Fixed rate 837,468 10,589 7.51 7.46 9.00 99.5 .5 46 Floating rate .. 521,540 4,520 7.61 7.35 8.84 93.8 1.2 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • September 1988 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-6, 1987*-1—Continued A. Commercial and Industrial Loans2—Continued AAmmoouunntt ooff Average W EEVV ei CC g IIBB h ^^ ted CC Loan rate (percent) L m o a a d n e s PPaarrttiiccii-- co M m o m st o n Characteristic ( o t f h o l d o u o a s l n l a a s n r d s) s ( o t f h o d s u o i s z l a l e a n r d s s ) mmaattuurriittyy33 WW av ee e iigg ra hh g ttee e dd Standard q II u nn a tt r ee t rr i -- le co u m m n e d m n e t i r t - (p p l e o a r t a c i n o e s n n t) pricing Days effective4 range6 (percent) OTHER BANKS 1 Overnight8 2,812,813 2,835 * 7.30 .14 6.98-7.51 91.8 8.5 Fed funds 2 One month and under 1,426,117 154 17 8.45 .22 7.44-9.47 72.5 5.6 Fed funds 3 Fixed rate 1,095,736 171 16 8.06 .19 7.25-8.35 79.7 4.2 Fed funds 4 Floating rate 330,382 115 20 9.74 .22 9.14-10.21 49.0 10.4 Prime 5 Over one month and under a year . 3,150,287 57 151 10.05 .18 9.31-10.92 59.8 7.4 Prime 6 Fixed rate 1,005,103 36 107 9.58 .35 7.92-10.92 45.5 4.5 Prime 7 Floating rate 2,145,184 79 172 10.27 .07 9.38-10.79 66.4 8.8 Prime 8 Demand9 6,517,009 155 * 9.46 .23 8.37-10.47 90.0 4.3 Prime 9 Fixed rate 969,433 536 * 7.82 .20 7.12-8.15 88.3 7.8 Fed funds 10 Floating rate 5,547,576 138 * 9.75 .19 9.31-10.65 90.3 3.6 Prime 11 Total short term 13,906,225 129 68 9.05 .25 7.43-10.38 81.7 6.0 Prime 12 Fixed rate (thousands of dollars)... 5,883,084 157 26 7.92 .18 7.05-8.05 81.1 6.9 Fed funds 13 1-24 212,257 7 97 11.92 .14 10.93-12.75 15.2 1.4 Other 14 25-49 111,369 34 114 11.32 .24 10.65-12.57 18.1 .1 Prime 15 50-99 119,254 66 105 10.82 .29 10.20-11.46 28.4 1.1 Prime 16 100-499 283,692 186 % 9.52 .33 8.17-10.75 43.1 4.2 Prime 17 500-999 142,341 658 54 8.63 .17 7.64-9.25 75.4 5.3 Other 18 1000 and over 5,014,170 5,210 14 7.50 .10 7.05-7.69 88.8 7.6 Fed funds 19 Floating rate (thousands of dollars) 8,023,142 114 151 9.88 .16 9.38-10.75 82.2 5.3 Prime 20 1-24 344,909 10 150 11.00 .06 10.20-11.57 67.7 .6 Prime 21 25-49 411,122 34 161 10.81 .08 10.20-11.57 74.4 1.8 Prime 22 50-99 604,881 66 153 10.65 .05 9.92-11.30 77.4 2.8 Prime 23 100-499 2,047,109 187 155 10.29 .06 9.65-10.75 81.3 8.4 Prime 24 500-999 868,551 642 160 9.89 .09 9.38-10.34 82.3 4.4 Prime 25 1000 and over 3,746,571 2,836 144 9.33 .32 8.07-10.38 85.6 5.0 Prime Months 26 Total long term 1,518,840 92 51 10.01 .22 9.14-10.93 40.7 6.7 Prime 27 Fixed rate (thousands of dollars)... 609,851 82 54 9.75 .34 8.00-11.02 35.2 4.1 Prime 28 1-99 109,436 17 35 11.88 .30 10.47-12.50 5.5 .2 Prime 29 100-499 133,792 177 66 10.66 .35 10.20-11.30 18.3 1.2 Prime 30 500-999 48,556 676 73 10.51 .43 9.38-12.13 41.3 4.9 Other 31 1000 and over 318,067 3,340 52 8.52 .43 7.39-9.50 51.5 6.6 Domestic 32 Floating rate (thousands of dollars) 908,988 101 49 10.19 .23 9.42-10.93 44.4 8.5 Prime 33 1-99 173,519 23 43 11.33 .22 10.47-11.85 17.3 .8 Prime 34 100-499 229,062 195 59 10.48 .17 9.92-11.02 34.4 6.2 Prime 35 500-999 95,921 624 39 10.29 .29 9.31-11.35 42.4 19.2 Prime 36 1000 and over 410,487 2,682 50 9.52 .29 9.31-9.% 61.9 10.5 Prime Loan rate (percent) DDaayyss Prime rate Effective4 Nominal10 LOANS MADE BELOW PRIME12 37 Overnight8 2,699,018 6,692 * 7.18 6.93 8.90 92.1 8.8 38 One month and under 1,021,276 633 15 7.66 7.39 9.03 84.3 18.6 39 Over one month and under a year 742,990 181 119 8.30 8.02 9.23 68.5 8.5 40 Demand9 1,926,258 788 * 7.57 7.37 9.01 92.9 5.2 41 Total short term 6,389,542 746 24 7.50 7.26 8.99 88.3 9.2 42 Fixed rate 5,032,140 1,093 15 7.41 7.17 8.94 87.5 10.4 43 Floating rate 1,357,403 343 141 7.84 7.60 9.19 91.5 4.9 Months 44 Total long term 373,750 447 43 8.08 7.83 9.11 63.8 12.3 45 Fixed rate 274,957 495 41 8.00 7.77 9.13 60.3 7.9 46 Floating rate .. 98,793 352 51 8.28 7.98 9.06 73.4 24.5 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 4.23—Continued B. Construction and Land Development Loans1 Loan rate (percent) AAmmoouunntt ooff AAvveerraaggee WWeeiigghhtteedd LLooaannss mmaaddee PPaarrttiiccii-llooaannss ssiizzee aavveerraaggee uunnddeerr ppaattiioonn CChhaarraacctteerriissttiicc (( oo tt ff hh oo dd uu oo ss llll aa aa nn rr dd ss)) ss (( oo tt ff hh oo dd uu oo ss llll aa aa nn rr dd ss ss )) (( mm mm aa oo tt nn uu tt rr hh iitt ss yy ))33 W e a f v f e e e i c g r t a h i g t v e e e d 4 St e a r n r d o a r5 r d q r I u a n a n t r e g t r i e - l 6 e ccoo (( mm ppee mm rrcc iitt ee mm nntt ee )) nn tt ((pp ll ee oo rr aa cc nn ee ss nn tt)) ALL BANKS 1 Total 3,424,900 187 7 9.87 .17 9.25-10.47 87.2 10.5 7 Fixed rate (thousands of dollars) 1,608,761 230 3 9.60 .42 8.89-10.03 90.7 17.2 3 1 24 43,010 12 6 11.12 .31 10.47-11.52 81.5 .1 4 25-49 61,885 35 17 13.02 .69 10.75-13.24 43.2 .0 5 50-99 64,659 63 10 11.44 .32 10.75-12.19 41.6 ..11 6 100-499 42,155 127 15 11.26 .48 10.75-12.75 55.9 ..99 7 500 and over 1,397,052 8,121 2 9.27 .21 8.77-9.64 96.5 19.8 H Floating rate (thousands of dollars) ... 1,816,139 160 10 10.11 .15 9.65-10.75 84.1 4.7 9 1 24 62,158 11 8 11.03 .10 10.47-11.57 69.0 1.4 10 25 49 61,761 35 34 10.91 .15 10.47-11.30 76.3 .9 11 50 99 103,915 66 23 11.22 .19 10.25-12.40 57.1 2.3 1? 100-499 317,563 189 15 10.80 .13 10.20-11.30 69.8 3.9 13 500 and over 1,270,742 2,673 7 9.76 .14 9.38-10.20 91.0 5.4 By type of construction 14 Single family 591,709 52 9 10.53 ..2211 99..5522--1111..0022 7733..22 ..66 15 Multifamily 390,677 338 10 10.10 .46 9.59-10.34 95.4 21.3 16 Nonresidential 2,442,513 420 6 9.67 .18 9.14-10.10 89.3 11.3 LARGE BANKS13 1 Total 2,389,431 1,374 3 9.52 .18 9.11-9.96 97.4 11.2 ? Fixed rate (thousands of dollars) 1,309,605 4,453 2 9.33 .24 8.95-9.82 96.8 15.1 3 1 24 708 8 9 10.42 .39 9.92-10.75 83.7 3.2 4 25-49 774 34 20 10.21 .31 9.47-11.07 92.2 .0 50-99 1,213 67 5 9.81 .32 9.50-10.20 92.4 6.3 6 100-499 3,905 1% 17 8.98 .16 7.90-9.65 100.0 9.6 7 500 and over 1,303,006 8,832 2 9.33 .18 8.95-9.82 96.8 15.2 8 Floating rate (thousands of dollars) ... 1,079,826 748 5 9.76 .17 9.56-10.20 9988..11 6.5 9 1 24 4,376 10 9 10.47 .11 10.20-10.75 9944..00 8.4 10 25 49 9,644 37 14 10.34 .13 10.20-10.47 96.5 2.7 11 50-99 15,324 70 9 10.34 .17 9.92-10.47 99.4 10.0 17 100-499 77,470 232 14 10.30 .09 9.92-10.64 91.9 4.7 13 500 and over 973,012 4,685 5 9.69 .15 9.35-10.20 98.6 6.6 By type of construction 14 Single family 168,460 426 2 99..7744 ..2288 99..3344--1100..4477 9900..22 11..77 15 Multifamily 243,272 1,071 4 9.92 .23 9.65-10.20 96.7 1.6 16 Nonresidential 1,977,699 1,772 3 9.45 .16 8.98-9.92 98.1 13.2 OTHER BANKS13 1 Total 1,035,469 62 15 10.68 .12 9.69-11.30 63.8 9.0 7 Fixed rate (thousands of dollars) 299,156 45 12 10.79 .56 8.31-11.57 64.3 26.2 3 1-24 42,302 12 6 11.13 .36 10.47-11.57 81.4 .0 4 25-49 61,111 35 17 13.05 .96 10.75-13.24 42.6 .0 5 50-99 63,447 62 10 11.47 .39 10.75-12.19 40.6 .0 6 100-499 38,250 123 15 11.49 .42 10.75-12.75 51.4 .0 7 500 and over * * * * 8 Floating rate (thousands of dollars) ... 736,313 74 17 10.63 .20 9.92-11.30 63.6 2.0 9 1 24 57,782 11 8 11.07 .09 10.47-11.57 67.1 .8 10 25 49 52,117 34 36 11.01 .22 10.47—11.57 72.6 .6 11 50-99 88,591 66 24 11.37 .28 10.25-12.40 49.8 1.0 1? 100-499 240,093 178 15 10.96 .22 10.38-11.35 62.7 3.6 13 500 and over 297,730 1,112 15 9.99 .26 9.38-10.47 66.2 1.5 By type of construction 14 Single family 423,249 39 10 10.84 .28 1100..2200--1111..5577 6666..44 ..11 15 Multifamily 147,406 159 29 10.40 .80 8.31-12.75 93.4 5533..77 16 Nonresidential 464,814 99 18 10.61 .16 9.92-11.02 52.0 2.9 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • September 1988 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-6, 1987*a—Continued C. Loans to Farmers14 Size class of loans (thousands) Characteristic $250 dl sizes $1-9 $10-24 $25-49 $50-99 $100-249 and over ALL BANKS 1 Amount of loans (thousands of dollars)... 1,125,172 $101,976 $145,222 $137,364 $167,730 $222,013 $350,867 2 Number of loans 46,536 28,240 9,868 4,006 2,488 1,454 481 3 Weighted average maturity (months)3 — 11.9 6.9 8.2 8.0 7.0 35.5 4.8 4 Weighted average interest rate (percent)4 , 11.02 12.00 11.65 11.37 11.47 11.51 9.82 5 Standard error5 .70 .35 .49 .37 .34 .57 1.09 6 Interquartile rante6 96-12.19 11.36-12.41 10.94-12.25 10.65-12.10 11.01-12.19 10.78-12.22 8.05-10.65 By purpose of loan 7 Feeder livestock 11.42 11.80 11.46 11.32 11.73 11.51 11.03 8 Other livestock 10.64 12.24 11.52 11.36 * 10.61 * 9 Other current operating expenses 11.31 11.92 11.87 11.53 11.35 11.29 9.99 10 Farm machinery and equipment 12.06 13.14 11.20 » * * * 11 Farm real estate 12.04 11.93 12.33 * * * * 12 Other 9.14 11.99 11.18 11.04 11.24 10.67 8.40 Percentage of amount of loans 13 With floating rates 56.1 51.0 41.1 46.2 53.8 63.8 63.9 14 Made under commitment 56.4 41.4 40.3 36.8 51.0 51.6 80.8 By purpose of loan 15 Feeder livestock 34.8 20.6 22.9 45.5 48.2 46.4 26.1 16 Other livestock 7.4 6.2 5.1 7.3 * 5.6 * 17 Other current operating expenses 31.4 60.3 54.3 29.4 30.0 23.0 19.9 18 Farm machinery and equipment 7.3 6.4 9.8 * * * * 19 Farm real estate 2.8 1.5 1.4 * * * * 20 Other 16.2 5.0 6.5 7.2 6.9 6.0 37.8 LARGE BANKS14 1 Amount of loans (thousands of dollars).. $365,638 $7,305 $14,347 $20,078 $25,607 $60,152 $238,150 2 Number of loans 4,238 1,698 914 593 381 388 263 3 Weighted average maturity (months)3 ... 4.4 6.8 8.0 7.4 8.0 9.1 2.6 4 Weighted average interest rate (percent)4 9.68 11.23 10.94 10.70 10.70 10.46 9.17 5 Standard error5 .68 .27 .47 .31 .18 .50 .70 6 Interquartile rante .05-10.65 10.75-11.63 10.38-11.46 10.00-11.35 10.43-11.04 9.88-10.92 8.05-9.98 By purpose of loan 7 Feeder livestock 10.27 11.05 10.80 10.74 10.80 10.49 10.04 8 Other livestock 10.61 11.65 * 10.74 * * * 9 Other current operating expenses 10.41 11.24 10.97 10.68 10.63 10.44 10.06 10 Farm machinery and equipment 11.22 11.17 * * * * * 11 Farm real estate 10.35 12.28 * * * * * 12 Other 8.72 11.01 10.82 10.73 10.73 10.64 8.40 Percentage of amount of loans 13 With floating rates 67.7 86.8 93.9 93.5 97.7 94.8 53.3 14 Made under commitment 95.4 78.3 84.4 87.8 92.1 89.3 99.2 By purpose of loan 15 Feeder livestock 23.6 19.2 17.6 21.4 19.7 34.5 21.9 16 Other livestock 4.2 4.1 * 7.3 * * * 17 Other current operating expenses 27.3 58.2 58.0 47.6 55.7 36.7 17.4 18 Farm machinery and equipment 1.2 3.2 * * * * * 19 Farm real estate 1.5 3.3 * * * * * 20 Other 42.1 12.0 15.1 19.2 16.2 16.3 55.8 OTHER BANKS14 1 Amount of loans (thousands of dollars).. $759,533 $94,671 $130,875 $117,287 $142,122 $161,861 * 2 Number of loans 42,298 26,541 8,954 3,413 2,107 1,066 * 3 Weighted average maturity (months)3 ... 14.6 6.9 8.3 8.1 6.9 41.8 * 4 Weighted average interest rate (percent)4 11.67 12.06 11.73 11.48 11.61 11.90 * 5 Standard error5 .15 .22 .11 .19 .28 .27 * 6 Interquartile rante6 .29-12.36 11.50-12.45 10.95-12.31 11.30-12.19 11.29-12.19 11.41-12.75 * By purpose of loan 7 Feeder livestock 11.75 11.86 11.51 11.36 11.79 11.76 • 8 Other livestock 10.64 12.27 * * * * * 9 Other current operating expenses 11.66 11.97 11.98 11.79 11.64 * * 10 Farm machinery and equipment 12.11 13.22 11.19 * * * * 11 Farm real estate 12.40 * * * * * * * 12 Other 11.41 12.19 11.29 * * * For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 4.23—Continued C. Loans to Farmers14—Continued Size class of loans (thousands) Characteristic $250 All sizes $1-9 $10-24 $25-49 $50-99 $100-249 and over Percentage of amount of loans 13 With floating rates 50.5 48.2 35.3 38.1 45.9 52.3 * 14 Made under commitment 37.6 38.6 35.5 28.1 43.6 37.6 By purpose of loan 15 Feeder livestock 40.2 20.7 23.4 49.7 5533..33 5500..88 * 16 Other livestock 8.9 6.3 * * * * 17 Other current operating expenses 33.4 60.5 53.9 26.2 25.3 * 18 Farm machinery and equipment 10.2 6.7 10.6 * 19 Farm real estate 3.4 * * 20 Other 3.7 4.4 5.5 * * * * Data for November 2-6,1987 should have appeared in the May 1988 issue but differ by less than this amount from the average rate that would be found by more current data were published in that issue. acomplete survey of lending at all banks. Fewer than 10 sample loans. 6. The interquartile range shows the interest rate range that encompasses the 1. The survey of terms of bank lending to business collects data on gross loan middle 50 percent of the total dollar amount of loans made. extensions made during the first full business week in the mid-month of each 7.. The most common base rate is that rate used to price the largest dollar quarter by a sample of 340 commercial banks of all sizes. A subsample of 250 volume of loans. Base pricing rates include the prime rate (sometimes referred to banks also report loans to farmers. The sample data are blown up to estimate the as a bank's "basic" or "reference" rate); the federal funds rate; domestic money lending terms at all insured commercial banks during that week. The estimated market rates other than the federal funds rate; foreign money market rates; and terms of bank lending are not intended for use in collecting the terms of loans other base rates not included in the foregoing classifications. extended over the entire quarter or residing in the portfolios of those banks. 8. Overnight loans are loans that mature on the following business day. Construction and land development loans include both unsecured loans and loans 9. Demand loans have no stated date of maturity. secured by real estate. Thus, some of the construction and land development 10. Nominal (not compounded) annual interest rates are calculated from survey loans would be reported on the statement of condition as real estate loans and the data on the stated rate and other terms of the loan and weighted by loan size. remainder as business loans. Mortgage loans, purchased loans, foreign loans, and 11. The prime rate reported by each bank is weighted by the volume of loans loans of less than $1,000 are excluded from the survey. extended and then averaged. As of Dec. 31, 1987, assets of most of the large banks were at least $6.0 billion. 12. The proportion of loans made at rates below prime may vary substantially For all insured banks total assets averaged $220 million. from the proportion of such loans outstanding in banks' portfolios. 2. Beginning with the August 1986 survey respondent banks provide informa- 13. 58.5 percent of construction and land development loans were priced tion on the type of base rate used to price each commercial and industrial loan relative to the prime rate. made during the survey week. This reporting change is reflected in the new 14. Among banks reporting loans to farmers (Table C), most "large banks" column on the most common base pricing rate in table A and footnote 13 from (survey strata 1 to 3) had over $600 million in total assets, and most "other banks" table B. (survey strata 4 to 6) had total assets below $600 million. 3. Average maturities are weighted by loan size and exclude demand loans. The survey of terms of bank lending to farmers now includes loans secured by 4. Effective (compounded) annual interest rates are calculated from the stated farm real estate. In addition, the categories describing the purpose of farm loans rate and other terms of the loan and weighted by loan size. have now been expanded to include "purchase or improve farm real estate." In 5. The chances are about two out of three that the average rate shown would previous surveys, the purpose of such loans was reported as "other." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Special Tables • September 1988 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1988 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 t F d a s i l n g o IB nl F y s 3 1 Total assets4 460,746 222,471 335,779 173,744 71,539 32,643 30,208 9,316 2 Claims on nonrelated parties 419,609 187,736 308,731 148,443 62,582 26,446 30,208 8,918 3 Cash and balances due from depository institutions 106,193 8888,,006666 86,773 7711,,558811 1100,,441155 99,,771166 66,,771133 55,,226699 4 Cash items in process of collection and unposted debits 731 0 688 0 22 0 4 0 5 Currency and coin (U.S. and foreign) 25 n.a. 19 n.a. 2 n.a. 2 n.a. 6 Balances with depository institutions in United States 57,318 4422,,888866 4455,,553300 3333,,666611 66,,339900 55,,777744 44,,227744 22,,991144 7 U.S. branches and agencies of other foreign banks (including their IBFs) 50,374 40,234 39,920 3311,,225544 55,,889988 55,,664477 33,,668822 22,,882299 8 Other depository institutions in United States (including their IBFs) 6,944 22,,665522 5,610 22,,440077 492 127 591 85 9 Balances with banks in foreign countries and with foreign central banks 46,163 45,180 38,775 37,920 3,952 3,943 2,378 2,355 10 Foreign branches of U.S. banks 1,743 11,,666644 1,469 11,,440044 107 106 112 107 11 Other banks in foreign countries and foreign central banks 44,420 43,516 37,306 36,516 3,845 3,837 2,267 2,248 12 Balances with Federal Reserve Banks 1,956 n.a. 1,762 n.a. 49 n.a. 55 n.a. 13 Total securities and loans 254,595 90,892 175,892 70,124 42,213 15,222 21,768 3,322 14 Total securities, book value 34,404 9,804 27,603 7,436 4,391 1,997 1,294 261 15 U.S. Treasury 6,632 n.a. 6,254 n.a. 179 n.a. 129 n.a. 16 Obligations of U.S. government agencies and corporations 3,763 n.a. 3,724 n.a. 38 n.a. 0 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 24,008 9,804 17,624 7,436 4,174 1,997 1,166 261 18 Federal funds sold and securities purchased under agreements to resell 14,729 2,310 13,176 1,676 1,017 449 81 23 19 U.S branches and agencies of other foreign banks 9,300 1,527 7,976 948 960 449 45 22 20 Commercial banks in United States 1,895 550 1,777 550 23 0 16 0 21 Other 3,534 232 3,424 178 34 0 20 1 22 Total loans, gross 220,430 81,195 148,414 62,732 37,923 13,287 20,480 3,061 23 Less: Unearned income on loans 238 107 125 44 102 63 6 0 24 Equals: Loans, net 220,191 81,088 148,289 62,688 37,822 13,225 20,473 3,061 Total loans, gross, by category 25 Real estate loans 15,026 170 7,666 135 3,218 29 2,004 0 26 Loans to depository institutions 64,821 44,733 46,978 31,045 12,8% 10,075 3,450 2,427 27 Commercial banks in United States (including IBFs) . 33,330 15,618 22,973 9,036 7,960 5,304 2,155 1,183 28 U.S. branches and agencies of other foreign banks . 27,572 14,622 17,760 8,297 7,560 5,133 2,047 1,098 29 Other commercial banks in United States 5,758 9% 55,,221122 739 400 172 109 85 30 Other depository institutions in United States (including IBFs) 75 16 11 7 15 0 25 0 31 Banks in foreign countries 31,416 29,099 23,994 22,002 4,920 4,771 1,270 1,244 32 Foreign branches of U.S. banks 775 658 674 558 46 46 55 55 ii Other banks in foreign countries 30,641 28,441 23,320 21,445 4,874 4,726 1,215 1,189 34 Other financial institutions 5,898 1,025 3,897 932 841 47 751 28 35 Commercial and industrial loans 110,692 18,851 69,304 16,076 19,097 2,054 13,803 391 36 U.S. addressees (domicile) 88,638 1,659 51,452 1,612 16,404 45 13,337 0 37 Non-U.S. addressees (domicile) 22,054 17,192 17,852 14,464 2,694 2,009 466 391 38 Acceptances of other banks 914 10 733 5 149 0 5 5 39 U.S. banks 278 0 217 0 41 0 0 0 40 Foreign banks 636 10 517 5 108 0 5 5 41 Loans to foreign governments and official institutions (including foreign central banks) 18,016 16,151 15,855 14,362 1,074 1,027 228 210 42 Loans for purchasing or carrying securities (secured and unsecured) 2,813 30 2,264 27 513 0 0 0 43 All other loans 2,250 226 1,717 151 135 55 238 0 44 All other assets 44,092 6,467 32,889 5,061 8,938 1,058 1,646 304 45 Customers' liability on acceptances outstanding 27,775 n.a. 19,716 n.a. 6,877 n.a. 874 n.a. 46 U.S. addressees (domicile) 17,213 n.a. 10,082 n.a. 6,199 n.a. 841 n.a. 47 Non-U.S. addressees (domicile) 10,563 n.a. 99,,663344 n.a. 678 n.a. 33 n.a. 48 Other assets including other claims on nonrelated parties 16,316 6,467 13,173 5,061 2,061 1,058 772 304 49 Net due from related depository institutions5 41,137 34,735 2277,,004488 2255,,330011 88,,995577 66,,119977 0 398 50 Net due from head office and other related depository institutions5 41,137 n.a. 2277,,004488 n.a. 88,,995577 n.a. 0 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 34,735 n.a. 25,301 n.a. 6,197 n.a. 398 52 Total liabilities4 460,746 222,471 335,779 173,744 71,539 32,643 30,208 9,316 53 Liabilities to nonrelated parties 402,754 198,831 306,753 157,376 64,509 28,940 17,538 6,253 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A83 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 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 5 ex T c IB l o u t F d a s i l ng o IB nl F y s 3 54 Total deposits and credit balances 60,687 152,482 50,349 135,788 2,136 8,530 2,931 3,144 55 Individuals, partnerships, and corporations 46,959 12, 984 37,523 8,673 2,028 452 2,372 46 56 U.S. addressees (domicile) 36,230 93 30,538 73 550 0 2,169 18 57 Non-U.S. addressees (domicile) 10,729 12,892 6,984 8,600 1,478 452 203 28 58 Commercial banks in United States (including IBFs) . 8,740 51,483 8,170 45,196 2 4,328 539 1,515 59 U.S. branches and agencies of other foreign banks . 3,045 42,745 2,570 37,202 1 3,847 473 1,301 60 Other commercial banks in United States 5,695 8,739 5,599 7,994 2 481 66 215 61 Banks in foreign countries 2,078 77,924 1,985 72,170 19 3,664 1 1,552 62 Foreign branches of U.S. banks 299 7,655 299 6,736 0 551 0 281 63 Other banks in foreign countries 1,779 70,269 1,686 65,434 19 3,113 1 1,271 64 Foreign governments and official institutions (including foreign central banks) 1,103 10,029 990 9,689 17 86 2 3300 65 All other deposits and credit balances 909 61 846 61 47 0 2 0 66 Certified and official checks 899 n.a. 836 n.a. 23 n.a. 15 n.a. 67 Transaction accounts and credit balances (excluding IBFs) 6,360 5,209 263 217 68 Individuals, partnerships, and corporations 3,766 2,848 229 197 69 U.S. addressees (domicile) 2,279 1,759 172 193 70 Non-U.S. addressees (domicile) 1,487 1,089 58 4 71 Commercial banks in United States (including IBFs) . 216 203 1 0 72 U.S. branches and agencies of other foreign banks . 63 63 0 0 73 Other commercial banks in United States 152 n.a. 140 n.a. 0 n.a. 0 n a. 74 Banks in foreign countries 990 923 9 1 75 Foreign branches of U.S. banks 106 106 0 0 76 Other banks in foreign countries 885 818 9 1 77 Foreign governments and official institutions (including foreign central banks) 362 284 1 2 78 All other deposits and credit balances 127 115 1 1 79 Certified and official checks 899 836 23 15 80 Demand deposits (included in transaction accounts and credit balances) 5,437 4,596 178 202 81 Individuals, partnerships, and corporations 3,192 2,574 145 182 82 U.S. addressees (domicile) 1,945 1,589 102 179 83 Non-U.S. addressees (domicile) 1,247 985 43 4 84 Commercial banks in United States (including IBFs) . 116 105 0 0 85 U.S. branches and agencies of other foreign banks . 10 10 0 0 86 Other commercial banks in United States 105 n.a. 95 n.a. 0 n.a. 0 n.a. 87 Banks in foreign countries 829 764 8 11 88 Foreign branches of U.S. banks 80 80 0 00 89 Other banks in foreign countries 749 684 8 1 90 Foreign governments and official institutions (including foreign central banks) 314 236 11 2 91 All other deposits and credit balances 87 80 00 1 92 Certified and official checks 899 836 23 15 93 Non-transaction accounts (including MMDAs, excluding IBFs) 54,327 45,140 1,873 2,715 94 Individuals, partnerships, and corporations 43,193 34,675 1,799 2,175 95 U.S. addressees (domicile) 33,951 28,779 378 1,976 96 Non-U .S. addressees (domicile) 9,241 5,8% 1,420 200 97 Commercial banks in United States (including IBFs) . 8,524 7,967 2 539 98 U.S. branches and agencies of other foreign banks . 2,982 2,508 1 473 99 Other commercial banks in United States 5,542 n.a. 5,460 n.a. 1 n a. 66 n.a. 100 Banks in foreign countries 1,0 88 1,061 10 0 101 Foreign branches of U.S. banks 193 193 0 0 102 Other banks in foreign countries 894 868 10 0 103 Foreign governments and official institutions (including foreign central banks) 741 706 1155 00 104 All other deposits and credit balances 782 731 47 1 105 IBF deposit liabilities 152,482 135,788 8,530 3,144 106 Individuals, partnerships, and corporations 12,984 8,673 452 46 107 U.S. addressees (domicile) 93 73 0 18 108 Non-U.S. addressees (domicile) 12,892 8,600 452 28 109 Commercial banks in United States (including IBFs) . 51,483 45,1% 4,328 1,515 110 U.S. branches and agencies of other foreign banks . 42,745 37,202 3,847 1,301 111 Other commercial banks in United States n.a. 8,739 n.a. 7,994 n a. 481 n a. 215 112 Banks in foreign countries 77,924 72,170 3,664 1,552 113 Foreign branches of U.S. banks 7,655 6,736 551 281 114 Other banks in foreign countries 70,269 65,434 3,113 1,271 115 Foreign governments and official institutions (including foreign central banks) 10,029 9,689 86 30 116 All other deposits and credit balances 61 61 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Special Tables • September 1988 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 19881—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 F t 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 46,944 2,393 34,890 1,516 8,674 688 2,827 65 118 U.S. branches and agencies of other foreign banks ... 9,781 893 7,060 355 2,216 461 352 0 119 Other commercial banks in United States 20,394 386 12,899 345 5,120 41 2,107 0 120 Other 16,769 1,114 14,931 <16 1,337 186 367 65 121 Other borrowed money 98,204 38,421 53,263 15,573 35,199 18,953 77,,223322 2,829 122 Owed to nonrelated commercial banks in United States (including IBFs) 64,273 16,601 33,136 4,094 24,717 11,010 4,516 860 123 Owed to U.S. offices of nonrelated U.S. banks 27,105 2,534 16,623 719 77,,559922 1,419 22,,006611 106 124 Owed to U.S. branches and agencies of nonrelated foreign banks 37,168 14,067 16,513 3,375 17,126 9,591 2,455 754 125 Owed to nonrelated banks in foreign countries 20,542 19,817 10,224 9,611 7,892 7,863 1,951 1.923 126 Owed to foreign branches of nonrelated U.S. banks .. 2,767 2,686 1,044 967 1,429 1,429 248 ?48 127 Owed to foreign offices of nonrelated foreign banks... 17,775 17,131 9,180 8,644 6,464 6,434 1,703 1,675 128 Owed to others 13,389 2,003 9,904 1,868 2,590 80 765 45 129 All other liabilities 44,438 5,535 32,463 4,499 99,,996699 769 11,,440033 716 130 Branch or agency liability on acceptances executed and outstanding 31,695 n.a. 21,754 n.a. 8,645 n.a. 893 n.a. 131 Other liabilities to nonrelated parties 12,743 5,535 10,708 4,499 1,324 769 510 216 132 Net due to related depository institutions5 57,992 23,640 29,026 16,368 77,,003300 3,704 1122,,667700 3,063 133 Net due to head office and other related depository institutions5 57,992 n.a. 29,026 n.a. 7,030 n.a. 12,670 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 23,640 n.a. 16,368 n.a. 3,704 n.a. 3,063 MEMO 135 Non-interest bearing balances with commercial banks in United States 1,490 23 1,241 23 140 0 51 0 136 Holding of commercial paper included in total loans 628 437 113 70 137 Holding of own acceptances included in commercial and industrial loans 3,033 1,876 850 138 138 Commercial and industrial loans with remaining maturity of one year or less 61,349 35,486 11,457 9,108 139 Predetermined interest rates 38,961 n.a. 21,408 n.a. 8,028 n.a. 6,277 n a. 140 Floating interest rates 22,388 14,078 3,429 22,,883311 141 Commercial and industrial loans with remaining maturity of more than one year 49,343 33,818 7,640 4,695 142 Predetermined interest rates 16,142 10,150 3,550 1,806 143 Floating interest rates 33,201 23,668 4,089 2,889 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A85 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 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 ex T c IB l o u t F d a s i l n g 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 70,841 1 61,962 1 1,658 t 2,935 I 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 40,316 33,703 1,077 2,073 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 111144447777 TTTTiiiimmmmeeee oooo rrrr CCCC mmmm DDDD oooo ssss rrrr iiii eeee nnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 9,890 8,838 nJ.a. 518 393 wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn n 1 .a. n 1 .a. n 1 .a. 11112222 mmmmoooonnnntttthhhhssss 20,636 19,422 64 470 All states2 New York California Illinois in T c IB l 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 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 3322,,880099 9,388 2266,,447733 7,221 44,,001122 1,829 11,,222299 228 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 5599,,443377 n.a. 3300,,774488 n.a. 2244,,660088 n.a. 22,,777755 n.a. 551100 223311 112244 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. 11 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 direcUy 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

A86 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 MARTHA S. SCANLON, Assistant Director AND COMMUNITY AFFAIRS DAVID J. STOCKTON, Assistant Director JOYCE K. ZICKLER, Assistant Director GRIFFITH L. GARWOOD, Director LEVON H. GARABEDIAN, Assistant Director GLENN E. LONEY, 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 ROGER T. COLE, 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

A87 and Official Staff H. ROBERT HELLER JOHN P. LA WARE 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 DIVISION OF FEDERAL RESERVE Programs Officer BANK OPERATIONS DIVISION OF HUMAN RESOURCES CLYDE H. FARNSWORTH, JR., Director MANAGEMENT ELLIOTT C. MCENTEE, Associate Director DAVID L. ROBINSON, Associate Director DAVID L. SHANNON, Director C. WILLIAM SCHLEICHER, JR., Associate Director JOHN R. WEIS, Associate Director CHARLES W. BENNETT, Assistant Director ANTHONY V. DIGIOIA, Assistant Director JACK DENNIS, JR., Assistant Director JOSEPH H. HAYES, JR., Assistant Director EARL G. HAMILTON, Assistant Director FRED HOROWITZ, Assistant Director JOHN H. PARRISH, Assistant Director LOUISE L. ROSEMAN, Assistant Director OFFICE OF THE CONTROLLER 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

A88 Federal Reserve Bulletin • September 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 JAMES H. OLTMAN SILAS KEEHN FRANK E. MORRIS STAFF DONALD L. KOHN, Secretary and Economist JOHN M. DAVIS, Associate Economist NORMAND R.V. BERNARD, 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 J. ALFRED BROADDUS, JR., 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 T. C. FROST, 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

A89 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

A90 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, 10 or more to one address, $1.25 each. Mail Stop 138, Board of Governors of the Federal Reserve PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. System, Washington, D.C. 20551. When a charge is indi- $13.50 each. cated, payment should accompany request and be made FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; uppayable to the Board of Governors of the Federal Reserve dated at least monthly. (Requests must be prepaid.) System, P.O. Box 27531, Richmond, VA 23261-7531. Pay- Consumer and Community Affairs Handbook. $75.00 per ment 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. The Payment System Handbook. $75.00 per year. ANNUAL REPORT. Federal Reserve Regulatory Service. 3 vols. (Contains all ANNUAL REPORT: BUDGET REVIEW, 1986-87. three Handbooks plus substantial additional material.) FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or $200.00 per year. $2.00 each in the United States, its possessions, Canada, Rates for subscribers outside the United States are as and Mexico; 10 or more of same issue to one address, follows and include additional air mail costs: $18.00 per year or $1.75 each. Elsewhere, $24.00 per Federal Reserve Regulatory Service, $250.00 per year. year or $2.50 each. Each Handbook, $90.00 per year. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A of Part I only) 1976. 682 pp. $5.00. MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. ANNUAL STATISTICAL DIGEST WELCOME TO THE FEDERAL RESERVE. 1974-78. 1980. 305 pp. $10.00 per copy. PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- 1981. 1982. 239 pp. $ 6.50 per copy. SERVE SYSTEM. August 1985. 30 pp. 1982. 1983. 266 pp. $ 7.50 per copy. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 1983. 1984. 264 pp. $11.50 per copy. 440 pp. $9.00 each. 1984. 1985. 254 pp. $12.50 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1985. 1986. 231 pp. $ 15.00 per copy. December 1986. 264 pp. $10.00 each. 1986. 1987. 288 pp. $15.00 per copy. HISTORICAL CHART BOOK. Issued annually in Sept. $1.25 each in the United States, its possessions, Canada, and Mexico; 10 or more to one address, $1.00 each. Elsewhere, $1.50 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- CONSUMER EDUCATION PAMPHLETS RIES OF CHARTS. Weekly. $24.00 per year or $.60 each in Short pamphlets suitable for classroom use. Multiple copies the United States, its possessions, Canada, and Mexico; are available without charge. 10 or more of same issue to one address, $22.50 per year or $.55 each. Elsewhere, $30.00 per year or $.70 each. Consumer Handbook on Adjustable Rate Mortgages THE FEDERAL RESERVE ACT, and other statutory provisions Consumer Handbook to Credit Protection Laws affecting the Federal Reserve System, as amended Fair Credit Billing through April 20, 1983, with Supplements covering Federal Reserve Glossary amendments through August 1987. 576 pp. $7.00. A Guide to Business Credit and the Equal Credit Opportunity REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- Act ERAL RESERVE SYSTEM. Guide to Federal Reserve Regulations ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— How to File A Consumer Credit Complaint Regulation Z) Vol. I (Regular Transactions). 1969. 100 If You Borrow To Buy Stock pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each If You Use A Credit Card volume $2.25; 10 or more of same volume to one Series on the Structure of the Federal Reserve System address, $2.00 each. The Board of Governors of the Federal Reserve System FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY The Federal Open Market Committee UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one Federal Reserve Bank Board of Directors address, $1.50 each. Federal Reserve Banks THE BANK HOLDING COMPANY MOVEMENT TO 1978: A Organization and Advisory Committees COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to A Consumer's Guide to Mortgage Lock-Ins one address, $2.25 each. A Consumer's Guide to Mortgage Closings INTRODUCTION TO FLOW OF FUNDS. 1980.68 pp. $1.50 each; A Consumer's Guide to Mortgage Refinancing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 PAMPHLETS FOR FINANCIAL INSTITUTIONS GATION, by Bonnie E. Loopesko. November 1983. Out Short pamphlets on regulatory compliance, primarily suit- of print. able for banks, bank holding companies and creditors. 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET INTERVENTION: A REVIEW OF THE LITERATURE, by Limit of 50 copies Ralph W. Tryon. October 1983. 14 pp. Out of print. 135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET The Board of Directors' Opportunities in Community Rein- INTERVENTION: APPLICATIONS TO CANADA, GERMANY, vestment AND JAPAN, by Deborah J. Danker, Richard A. Haas, The Board of Directors' Role in Consumer Law Compliance Dale W. Henderson, Steven A. Symansky, and Ralph Combined Construction/Permanent Loan Disclosure and W. Tryon. April 1985. 27 pp. Out of print. Regulation Z 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECON- Community Development Corporations and the Federal Re- OMY, by Darrell Cohen and Peter B. Clark. January serve 1984. 16 pp. Out of print. Construction Loan Disclosures and Regulation Z 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF Finance Charges Under Regulation Z FINANCIAL DEREGULATION, INTERSTATE BANKING, How to Determine the Credit Needs of Your Community AND FINANCIAL SUPERMARKETS, by Stephen A. Regulation Z: The Right of Rescission Rhoades. February 1984. Out of print. The Right to Financial Privacy Act 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDELINES, Signature Rules in Community Property States: Regulation B AND THE LIMITS OF CONCENTRATION IN LOCAL BANK- Signature Rules: Regulation B ING MARKETS, by James Burke. June 1984. 14 pp. Out Timing Requirements for Adverse Action Notices: Regula- of print. tion B 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN What An Adverse Action Notice Must Contain: Regulation B THE UNITED STATES, by Thomas D. Simpson and Understanding Prepaid Finance Charges: Regulation Z Patrick M. Parkinson. August 1984. 20 pp. 140. GEOGRAPHIC MARKET DELINEATION: A REVIEW OF THE LITERATURE, by John D. Wolken. November 1984. 38 pp. Out of print. STAFF STUDIES: Summaries Only Printed in the 141. A COMPARISON OF DIRECT DEPOSIT AND CHECK PAY- Bulletin MENT COSTS, by William Dudley. November 1984. 15 pp. Out of print. Studies and papers on economic and financial subjects that 142. MERGERS AND ACQUISITIONS BY COMMERCIAL BANKS, are of general interest. Requests to obtain single copies of 1960-83, by Stephen A. Rhoades. December 1984. 30 the full text or to be added to the mailing list for the series pp. Out of print. may be sent to Publications Services. 143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF THE Staff Studies 115-125 are out of print. ELECTRONIC FUND TRANSFER ACT: RECENT SURVEY EVIDENCE, by Frederick J. Schroeder. April 1985. 23 114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE pp. Out of print. ON COMPETITION AND PERFORMANCE IN BANKING 144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON- MARKETS, by Timothy J. Curry and John T. Rose. Jan. SUMER CREDIT REGULATIONS: THE TRUTH IN LENDING 1982. 9 pp. AND EQUAL CREDIT OPPORTUNITY LAWS, by Gregory 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- E. Elliehausen and Robert D. Kurtz. May 1985. 10 pp. KET INTERVENTION, by Donald B. Adams and Dale W. 145. SERVICE CHARGES AS A SOURCE OF BANK INCOME AND Henderson. August 1983. 5 pp. Out of print. THEIR IMPACT ON CONSUMERS, by Glenn B. Canner and 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Robert D. Kurtz. August 1985. 31 pp. Out of print. VENTION: JANUARY-MARCH 1975, by Margaret L. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF Greene. August 1984. 16 pp. Out of print. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Thomas F. Brady. November 1985. 25 pp. VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) INgaret L. Greene. October 1984. 40 pp. Out of print. DEXES OF THE MONETARY AGGREGATES, by Helen T. 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Farr and Deborah Johnson. December 1985. 42 pp. VENTION: OCTOBER 1980-OcTOBER 1981, by Margaret 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE L. Greene. August 1984. 36 pp. ECONOMIC RECOVERY TAX ACT: SOME SIMULATION 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTER- RESULTS, by Flint Brayton and Peter B. Clark. Decem- NATIONAL TRADE AND OTHER ECONOMIC VARIABLES: ber 1985. 17 pp. A REVIEW OF THE LITERATURE, by Victoria S. Farrell 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN with Dean A. DeRosa and T. Ashby McCown. January BANKING BEFORE AND AFTER ACQUISITION, by Stephen 1984. Out of print. A. Rhoades. April 1986. 32 pp. 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: DEUTSCHE MARK INTERVENTION, by Laurence R. Ja- A REEXAMINATION AND AN APPLICATION, by John T. cobson. October 1983. 8 pp. Rose and John D. Wolken. May 1986. 13 pp. 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRIC- EXCHANGE RATES AND INTERVENTION: A REVIEW OF ING FROM 1983 THROUGH I985, by Patrick I. Mahoney, THE TECHNIQUES AND LITERATURE, by Kenneth Ro- Alice P. White, Paul F. O'Brien, and Mary M. goff. October 1983. 15 pp. McLaughlin. January 1987. 30 pp. 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVEN- 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A TION, AND INTEREST RATES: AN EMPIRICAL INVESTI- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Bank Lending to Developing Countries. 10/84. April 1987. 18 pp. Survey of Consumer Finances, 1983: A Second Report. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and 12/84. Alice P. White. September 1987. 14 pp. Union Settlements and Aggregate Wage Behavior in the 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF PRO- 1980s. 12/84. POSED CEILINGS ON CREDIT CARD INTEREST RATES, by The Thrift Industry in Transition. 3/85. Glenn B. Canner and James T. Fergus. October 1987. 26 A Revision of the Index of Industrial Production. 7/85. pp. Financial Innovation and Deregulation in Foreign Industrial 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Countries. 10/85. Warshawsky. November 1987. 25 pp. Recent Developments in the Bankers Acceptance Market. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANK- 1/86. ING MARKETS, by James V. Houpt. May 1988. 47 pages. The Use of Cash and Transaction Accounts by American Families. 2/86. Financial Characteristics of High-Income Families. 3/86. REPRINTS OF BULLETIN ARTICLES Prices, Profit Margins, and Exchange Rates. 6/86. Agricultural Banks under Stress. 7/86. Most of the articles reprinted do not exceed 12 pages. Foreign Lending by Banks: A Guide to International and U.S. Statistics. 10/86. Limit of 10 copies Recent Developments in Corporate Finance. 11/86. 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. A Financial Perspective on Agriculture. 1/84. U.S. International Transactions in 1987. 5/88. Survey of Consumer Finances, 1983. 9/84. Home Equity Lines of Credit. 6/88. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A93 Index to Statistical Tables References are to pages A3-A85 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20, 74, 80 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 18-20 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, 82-85 Deposits (See also specific types) Nonfinancial corporations, 36 Banks, by classes, 3, 18-20, 21 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. (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, 82-89 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 CAPACITY utilization, 46 ownership of gross debt, 30 Capital accounts Receipts and outlays, 28, 29 Banks, by classes, 18 Treasury financing of surplus, or deficit, 28 Federal Reserve Banks, 10 Treasury operating balance, 28 Central banks, discount rates, 67 Federal Financing Bank, 28, 33 Certificates of deposit, 24 Federal funds, 6, 17, 19, 20, 21, 24, 28 Commercial and industrial loans Federal Home Loan Banks, 33 Commercial banks, 16, 19, 70-72, 76-78, 82 Federal Home Loan Mortgage Corporation, 33, 38, 39 Weekly reporting banks, 19-21 Federal Housing Administration, 33, 38, 39 Commercial banks Federal Land Banks, 39 Assets and liabilities, 18-20 Federal National Mortgage Association, 33, 38, 39 Commercial and industrial loans, 16, 18, 19, 20, 21, Federal Reserve Banks 70-72, 76-78 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 Real estate mortgages held, by holder and property, 39 Federal Reserve notes, 10 Terms of lending, 70-75, 76-81 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, 73, 79 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 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 Liabilities to, 20, 54, 55, 57, 58, 63, 65, 66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A94 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 ajgreements, 6, 17, 19, 20, 21 Reserve requirements, 8 HOUSING, new and existing units, 49 Reserves Commercial banks, 18 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 Commercial banks, 70-75, 76-81 SAVING Consumer installment credit, 41 Flow of funds, 42, 43 Federal Reserve Banks, 7 National income accounts, 51 Foreign central banks and foreign countries, 67 Savings and loan associations, 26, 39, 40, 42. (See also Money and capital markets, 24 Thrift institutions) Mortgages, 38 Savings banks, 26, 39, 40 Prime rate, 23 Savings deposits (See Time and savings deposits) International capital transactions of United States, 53-67 Securities (See also specific types) International organizations, 57, 58, 60, 63, 64 Federal and federally sponsored credit agencies, 33 Inventories, 51 Foreign transactions, 65 Investment companies, issues and assets, 35 New issues, 34 Investments (See also specific types) Prices, 25 Banks, by classes, 18, 19, 20, 21, 26 Special drawing rights, 4, 10, 53, 54 Commercial banks, 3, 16, 18-20, 39 State and local governments Federal Reserve Banks, 10, 11 Deposits, 19, 20 Financial institutions, 26, 39 Holdings of U.S. government securities, 30 New security issues, 34 LABOR force, 45 Ownership of securities issued by, 19, 20, 26 Life insurance companies (See Insurance companies) Rates on securities, 24 Loans (See also specific types) Stock market, selected statistics, 25 Banks, by classes, 18-20 Stocks (See also Securities) Commercial banks, 3, 16, 18-20, 70-75, 76-81 New issues, 34 Federal Reserve Banks, 4, 5, 7, 10, 11 Prices, 25 Financial institutions, 26, 39 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 Federal funds and repurchase agreements, 6 Trade, foreign, 54 Reserve requirements, 8 Treasury cash, Treasury currency, 4 Mining production, 48 Treasury deposits, 4, 10, 28 Mobile homes shipped, 49 Treasury operating balance, 28 Monetary and credit aggregates, 3, 12 UNEMPLOYMENT, 45 Money and capital market rates, 24 U.S. government balances Money stock measures and components, 3, 13 Commercial bank holdings, 18, 19, 20 Mortgages (See Real estate loans) Treasury deposits at Reserve Banks, 4, 10, 28 Mutual funds, 35 U.S. government securities Mutual savings banks (See Thrift institutions) Bank holdings, 18-20, 21, 30 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 VETERANS Administration, 38, 39 Producer prices, 44, 50 Production, 44, 47 WEEKLY reporting banks, 19-21 Profits, corporate, 35 Wholesale (producer) prices, 44, 50 REAL estate loans Banks, by classes, 16, 19, 20, 39 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A95 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 James H. Oltman 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. Stoides 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 Howard Wells 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 060%; 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 1F. RSeAnSioEr RV ice President. http://fraser.2s.t lEoxueiscufetidv.eo rVgi/c e President. Federal Reserve Bank of St. Louis

A96 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories 1 1 i ALASKA i i i i i• © Z /p •djs J0 . mm- -t^' 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 Protections offered by the Electronic Fund Transfer PUBLICATIONS Act are explained in Alice in Debitland. This booklet offers tips for those using the new "paperless" sys- The Federal Reserve Board publishes a series of tems for transferring money. pamphlets covering individual credit laws and topics, Three booklets on the mortgage process are also as pictured below. The series includes such subjects as available: A Consumer's Guide to Mortgage Refinanchow the Equal Credit Opportunity Act protects wom- ing, A Consumer's Guide to Mortgage Lock-Ins, and en against discrimination in their credit dealings, how A Consumer's Guide to Mortgage Closings. These to use a credit card, and how to resolve a billing error. booklets were prepared in conjunction with the Feder- The Board also publishes the Consumer Handbook al Home Loan Bank Board and in consultation with to Credit Protection Laws, a complete guide to con- other federal agencies and trade and consumer groups. sumer credit protections. This 44-page booklet ex- Copies of consumer publications are available free plains how to use the credit laws to shop for credit, of charge from Publications Services, Mail Stop 138, apply for it, keep up credit ratings, and complain about Board of Governors of the Federal Reserve System, an unfair deal. Washington, D.C. 20551. Multiple copies for classroom use are also available free of charge. Fair Credit Billing 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 con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis