Federal Reserve Bulletin, 1988-12

VOLUME 74 • NUMBER 12 • DECEMBER 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 783 INNOVATION AND REGULATION OF 793 LEGAL DEVELOPMENTS BANKS IN THE 1990S Various bank holding company, bank ser- Alan Greenspan, Chairman, Board of Govvice corporation, and bank merger orders; ernors, outlines the goals of regulatory poland pending cases. icy for depository institutions: to avoid the risk of systemic failure of the insured depository system, to promote competitive Ai FINANCIAL AND BUSINESS STATISTICS and efficient capital markets, to protect impartiality in the granting of credit, and to These tables reflect data available as of prevent extension of the safety net to non- October 28, 1988. banking activities. Chairman Greenspan says that change is inevitable and, if prop- A3 Domestic Financial Statistics erly managed, can bring improvements in A44 Domestic Nonfinancial Statistics economic welfare. Therefore, the regula- A53 International Statistics tor's job is to adapt to change in ways that preserve its benefits while maintaining the A69 GUIDE TO TABULAR PRESENTATION, stability of the financial system. STATISTICAL RELEASES, AND SPECIAL TABLES 788 INDUSTRIAL PRODUCTION Industrial production was unchanged in A70 BOARD OF GOVERNORS AND STAFF September. 790 ANNOUNCEMENTS A72 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS New economic measures announced by the government of Mexico. A74 FEDERAL RESERVE BOARD Final ruling on "payable through" checks PUBLICATIONS issued under Expedited Funds Availability Act. AH SCHEDULE OF RELEASE DATES FOR Fee schedules for 1989 available for priced PERIODIC RELEASES services of the Federal Reserve District Banks. A79 INDEX TO STATISTICAL TABLES Revised List of Marginable OTC Stocks now available. A8i INDEX TO VOLUME 74 Publication of Annual Statistical Digest, 1987. A92 FEDERAL RESERVE BANKS, Changes in Board staff. BRANCHES, AND OFFICES Admission of six state banks to membership in the Federal Reserve System. A93 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Innovation and Regulation of Banks in the 1990s Alan Greenspan, Chairman of the Board of Gov- activities. Second, change is inevitable and, ernors of the Federal Reserve System, made the while it may bring the potential for increased following remarks before the American Bankers risk, it is also likely, if properly managed, to Association, in Honolulu, Hawaii, on Octo- bring improvements in economic welfare. The ber 11, 1988. regulator's job is to adapt to change in ways that preserve its benefits while maintaining the stabil- It is a pleasure to have the opportunity to address ity of the financial system. members of the American Bankers Association. As you may recall, a minor mishap in securities markets came between us last year. I have one KEY CHANGES IN RECENT YEARS request at the outset: if anyone knows how the stock market closed today, don't tell me until Over the past decade our financial landscape has I've finished. experienced a number of key, and often intercon- That we can joke a little about the events of a nected, changes. Advances in computer and teleyear ago is a tribute to the resilience and adapt- communications technology have enabled both ability of our financial markets and economy. borrowers and lenders to obtain and use credit- Nonetheless, such occasions do remind us of the and market-risk information more easily and at speed and suddenness with which markets can lower cost. In important ways, these developmove today, and of the potential impacts of such ments have displaced banks from their traditional movements on investors and financial institu- economic functions. Many new financial prodtions. ucts have resulted from this technological revo- Even before last October's events, there was lution in information processing that challenge increased concern about potential instabilities in traditional bank loans and funding techniques. It the financial system. Such concern arose as a seems reasonable to assume that the trend consequence of the major changes in the financial toward direct investor-borrower linkage, or landscape that have occurred in this decade— more securitization, will continue. changes that in some cases are continuing and Moreover, financial markets have become ineven accelerating. I shall spend only a few min- creasingly international in scope, and the resultutes reviewing them, concentrating on their im- ing intensity of competition has put increased plications for the business of banking and for the pressures on the profit margins of many deposiregulation of banks and other depository institu- tory institutions. When combined with the revotions. As you adapt, so must we, and that is the lution in information processing, the increase in focus of my remarks today. the speed with which assets can be shifted At the very beginning I would highlight two around the world in liquid markets has accentupoints. First, the goals of regulatory policy for ated the need for effective risk-management poldepository institutions may be stated quite sim- icies by both depository institutions and regulaply: to avoid the risk of systemic failure of the tors. insured depository system, to promote competi- A significant element in financial change, the tive and efficient capital markets, to protect deregulation of interest rates and selected prodimpartiality in the granting of credit, and to uct lines in the United States and some other prevent extension of the safety net to nonbanking countries, has improved the overall competitive- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 Federal Reserve Bulletin • December 1988 ness and efficiency of capital markets. But it has ity—and concurrently to make better use of also removed hitherto protected sources of funds market and market-like incentives to discourage to depositories, potentially exposing them to excessive risk-taking at individual institutions. increased interest rate risk and to added pres- There must be a symmetry of reward and risk for sures on profit margins. Similarly, the break- owners of depository institutions: those who down of barriers to interstate banking in the stand to gain substantially if the institution is United States, while providing opportunities for successful must also stand to lose substantially if geographic diversification and more open access outcomes are not so favorable. Surely, one lesto new markets, also has increased pressures on son from the experience with some troubled some institutions. Today, all but five states have depository institutions in recent years is that passed some form of liberalized interstate bank- unbalanced incentives to assume risk, arising ing law. There is every reason to believe that the when the federal insurer absorbs losses while the competitive pressures brought about by the owners reap profits, can lead to destabilizing deregulation of interest rates, product lines, and behavior. geographic limitations will continue. The key to engendering market incentives, and Finally, macroeconomic events such as the at the same time providing shock absorbers for sharp increase in inflation and interest rates in depository institutions, is to require that those the late 1970s, the severe recessions of the early owners who would profit from an institution's 1980s, the steep decline in oil prices, and the success have the appropriate amount of their October 1987 stock market crash, have, as seems own capital at risk. Capital acts as a buffer evident, induced people in general, and financial against unexpected shocks to a firm and thereby market participants in particular, to expand their helps to insulate both individual firms and the expectations regarding the potential volatility of system from risk. There is no better way to asset prices and other economic variables. In ensure that owners exert discipline on the behavother words, these events have not only caused ior of their firm than to require that they have a severe contemporaneous problems; they have large stake in that enterprise. The needs for also injected a new and higher degree of uncer- larger shock absorbers and for increased private tainty, or risk, into projections of the future. This incentives to monitor and control risk are the reaction highlights the fundamental interdepen- fundamental reasons why increasing the amount dencies between the macroeconomy and the fi- of capital in the depository institution system has nancial markets that any policymaker—but espe- been a major goal of Federal Reserve regulatory cially one in the central bank—must recognize. policy in the 1980s. To the extent that we suc- For all the new techniques for shifting risk ceed, we will have begun to lay a solid foundaaround the financial system, the ultimate safety tion for the 1990s. and stability of that system depend on the stabil- Some may argue that raising capital standards ity of the economy on which it is based. And that will put banking organizations at a competitive economy cannot itself behave in a stable and disadvantage. This argument strikes me as shortpredictable fashion if the markets in which claims sighted. Well-capitalized firms can be counted on on saving and capital are allocated are subject to to be around in the future, and thus to be worthy waves of concern about key participants. of customers' willingness to establish long-term relationships. Moreover, while the capital ratios of bank holding companies generally have been KEY COMPONENTS OF POLICY RESPONSE rising during the 1980s, they still tend to be considerably below those at nondepository finan- The implications of these changes for the regula- cial firms. In many cases, this difference no tion of depository institutions are varied and doubt reflects real or imagined protection by the complex. I believe the way to begin responding federal safety net. This tendency toward overreliance on the safety net by both owners and to both today's and tomorrow's economic envidepositors has inhibited, and in some cases may ronment is to fortify the natural "shock absorbhave eliminated, the private market signals that ers" of the financial system—capital and liquid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Innovation and Regulation of Banks in the 1990s 785 would have made much less likely many of the encouraged to operate above the minimum capiportfolio problems now facing numerous depos- tal ratios specified in the accord. Doing so is itory institutions. Thus, the safety and soundness especially important for institutions undertaking of the financial system require that banks have rapid expansion, and for those with operational adequate capital. or financial characteristics that are of supervi- For many banks this means increased capital sory concern. In addition, it is clearly the intenrequirements. I recognize that some of these tion of all concerned to improve the risk-based banks, not feeling market pressures to raise system over time. For example, work currently capital ratios, may consider increased capital is proceeding on how interest rate and liquidity requirements unnecessarily burdensome. How- risk might be included. ever, given the existence of the federal safety But to dwell on the accord's shortcomings net, market signals regarding the level of capital really misses the important points. We know the may not be appropriate from a broader perspec- current system has serious deficiencies, and the tive. The safety net has the effect of overriding risk-based capital accord clearly is an improvesome forms of market discipline, and the implied ment. It establishes the principle of requiring that partial backing of the federal government for a bank's capital ratio reflect its degree of risk. some bank funds means that incentives for banks The accord also recognizes explicitly that offto maintain adequate capital are weakened. balance-sheet activities impose risks on the bank The reluctance of banks to raise equity in and therefore deserve a capital charge. In the capital markets may also be based, to an extent, risk-based accord a viable forum has been creon comparisons of book and market values of ated in which international cooperation on bank equity and the apparent consequences of a short- regulatory matters can be designed and implefall in market value for shareholder dilution. But mented. In an increasingly interdependent world, the relevant consideration is clearly enhancing there can be little doubt that this represents the market value of the firm over time. High- important progress. The accord significantly recapital banks will be the ones that can react to duces the competitive inequities to which our the changing environment and profit from new banks have been subject as U.S. capital stanopportunities. dards have risen relative to those in other coun- Regulatory policy can and should do more than tries. Finally, in the long run the accord may merely raise the level of capital. A risk-based serve as a model for international cooperation in system of capital standards should help to deter regulating other aspects of banking and even excessive risk-taking by individual banks; and other financial intermediaries. the greater capital costs imposed on higher-risk The accumulation of adequate capital and the banks will imply a fairer distribution of capital successful implementation of a risk-based capital requirements within the banking system. These system would certainly go far toward ensuring principles are well known and well utilized in the stability of the system of depository instituprivate markets: higher-risk borrowers are tions in the 1990s. However, the information charged higher interest rates on loans in money revolution is changing the very nature of financial and capital markets, and higher-risk insurees are intermediation in ways that, if certain statutory charged higher premiums by insurance compa- and regulatory policies are maintained, in all nies. likelihood will cause the role for banks to dimin- Bank regulators took an important step for- ish. This, in turn, will make it difficult for banks ward this past summer,•when virtually all of the to obtain the capital they need. major industrial nations agreed to implement a The key reform needed to respond to the risk-based capital system by the end of 1992. information revolution is, of course, repeal of the Everyone realizes that the scheme adopted is far Glass-Steagall separations of commercial and from perfect. Indeed, in recognition of the fact investment banking. The provision of investment that the framework does not take account of all banking services, particularly to corporate clithe risks to which banks may be exposed, bank- ents, is on the cutting edge of the information ing organizations generally should, I believe, be revolution. Repeal of Glass-Steagall would allow Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin • December 1988 banking organizations to evolve with technology given policy and compatible with the incentives and the market, and would provide real public that other regulatory actions provide. It would be benefits from increased competition and from inefficient and counterproductive, for example, possible economies of scale and scope. Mainte- if, on the one hand, we attempted to increase nance of the current environment, on the other shareholder discipline on bank holding company hand, will force us to incur unnecessary costs as risk-taking by increasing capital requirements, the specialized resources of banking organiza- while, on the other hand, we reduced lenders' tions are transferred into other activities or bus- discipline by extending the federal safety net to inesses—not because of banks' unwillingness to holding company debt holders. compete or innovate, but simply because of an The degree of policy coordination I am suginflexible statutory and regulatory structure. In gesting is extremely difficult to achieve, in part response to these concerns, the Board has per- because incentives are often complex or subtle mitted bank holding companies to engage in and in part because general policies are somecertain hitherto ineligible securities activities in a times adopted in response to specific events separate subsidiary of the holding company. alone. Indeed, it may be impossible to achieve However, clarifying and comprehensive legisla- complete consistency in some cases because the tion at the federal level clearly is preferable to goals of policy are themselves contradictory. regulatory action. However, unless we make a strong effort to be While repeal of Glass-Steagall is certainly one consistent across market participants and poliof the Board's highest priorities, it is worth cies, we run the risk of achieving little or no recalling that such an action raises public policy progress. concerns. These concerns relate to preventing More adequate capital, risk-based capital, and the transfer of increased risk to the bank, to increased securities powers for bank holding protecting impartiality in the granting of credit, companies would provide a solid beginning for and to preventing extension of the safety net to our efforts to ensure financial stability. These securities activities. In its desire to achieve these reforms would not mean, however, that no banks goals, the Board has supported the location of would fail, or that merger and acquisition activity certain expanded nonbanking activities, includ- would cease. Competitive pressures from intering expanded securities powers, in separate sub- national banks, out-of-state domestic organizasidiaries of bank holding companies. Successful tions, new depository institutions, and nonbank implementation of this strategy requires the con- financial firms will continue and likely increase. struction and maintenance of effective "fire- Various sectors of our economy and of the world walls" between a bank and an affiliated securities economy inevitably will experience unexpected firm. Thus, the Board has required that firewalls changes in supply and demand. There will always be maintained as a condition of regulatory ap- be some owners and managers whose fraudulent proval for expanded securities activities; and it behavior or simple incompetence puts their instihas supported most of the firewall provisions of tutions at risk. the Financial Modernization Act passed by the These arguments suggest other important pol- Senate. We believe the holding company ap- icy responses to our changed financial environproach is the best available; that it can be tested ment. First, the timely closing of insolvent firms in the "real world" of financial institutions; and is vital if we are to avoid the misallocations of that, if it proves as effective as we expect, it credit, the distorted competitive incentives, and should serve as a foundation on which to build the increased costs to the deposit insurance more generally for the 1990s and beyond. funds that result when a failed institution is I would emphasize that we must attempt to allowed to operate with the public's money. coordinate our policies in such a way that each Second, the Federal Reserve supports efforts can be seen as a piece of an integrated whole. In to limit deposit insurance protection to deposiparticular, the incentives for owners and manag- tors in the insured intermediary, and not to ers of financial institutions, for the public, and extend protection to the creditors of the parent even for regulators must be consistent within a holding company. Such efforts correctly focus Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Innovation and Regulation of Banks in the 1990s 787 the protections of the safety net on the deposi- efforts by the Federal Reserve to control risk in tory institution and provide holding company the payments mechanism, or the proposal of creditors a strong incentive to control risk-taking some observers for market-value accounting at at both the bank and the holding company levels. banking organizations. We shall always need Indeed, without a program that places the risk accurate and up-to-date monitoring of the risk where the profit potential is—on the private position of individual institutions through the sector—it is questionable whether we should supervisory process. empower banking organizations to take on new However, I believe that the responses I have risks. To do so would be inconsistent with the outlined today constitute the essential core of broad policy of increased market discipline that, any set of policies designed to deal with the as I have argued, must be part of a responsible financial landscape of the 1990s. The future is public policy that both permits banks to respond inherently uncertain, and we surely shall face to the changes in the financial environment and new and unexpected challenges in the years maintains financial stability. ahead. I believe that we can face the future with Clearly, the policy responses that I could dis- confidence if we have the wisdom and the will to cuss with you have not been exhausted. I could lay the proper groundwork. have mentioned, for example, the continuing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 Industrial Production Released for publication October 14 during last summer's heat wave. At 138.3 percent of the 1977 average, the total index in September Industrial production was unchanged in Septem- was 5.5 percent higher than it was a year earlier; ber after having risen 0.2 percent in August and for the third quarter as a whole, production 1.2 percent in July. Output of business equip- advanced nearly 7 percent at an annual rate, with ment continued to rise, and auto production most of the gain occurring early in the quarter. advanced again in September. Electricity output In market groups, output of consumer goods fell sharply, however, as usage returned to a declined 0.3 percent in September; production of more normal level after the surge that occurred consumer energy, mainly electricity for residen- Ratio scale, 1977= 100 TOTAL INDEX MANUFACTURING 140 _ MATERIALS Nondurable Durable 120 100 Energy 80 L CONSUMER GOODS 160 h- INTERMEDIATE PRODUCTS Business supplies 140 120 100 / Construction supplies J I 80 140 MOTOR VEHICLES AND PARTS FINAL PRODUCTS Defense and space 200 120 180 100 160 140 80 Consumer goods 120 60 100 80 1982 1984 1986 1988 1982 1984 1986 1988 All series are seasonally adjusted. Latest figures: September. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

789 1977 = 100 Percentage change from preceding month Percentage ccchhhaaannngggeee,,, Group 1988 1988 SSSeeepppttt... 111999888777 tttooo SSSeeepppttt... 111999888888 Aug. Sept. May June July Aug. Sept. Major market groups Total industrial production 138.3 138.3 .5 .3 1.2 .2 .0 5.5 Products, total 147.0 146.9 .7 .2 .8 .3 .0 5.4 Final products 145.6 145.5 .7 .3 .7 .4 .0 5.6 Consumer goods 134.6 134.2 .6 .2 .9 .4 -.3 5.1 Durable 126.3 126.3 1.9 -.3 .0 .8 .1 6.5 Nondurable 137.7 137.2 .2 .4 1.1 .3 -.4 4.7 Business equipment... 160.3 161.0 1.5 .8 .8 .5 .5 10.0 Defense and space 184.4 183.9 -1.3 -.5 .2 -.3 -.3 -3.1 Intermediate products... 151.8 151.8 .5 -.3 1.0 .2 .0 4.8 Construction supplies. 137.7 137.8 .9 -.9 .5 -.4 .1 4.2 Materials 126.6 126.6 .3 .4 1.8 -.1 .0 5.8 Major industry groups Manufacturing 143.7 144.0 .7 .2 1.0 .1 .2 6.1 Durable 143.2 143.6 1.3 .1 .9 .2 .3 7.4 Nondurable 144.3 144.6 -.2 .4 1.3 .0 .2 4.3 Mining 104.5 104.7 -2.0 .3 2.3 -.8 .2 2.8 Utilities 117.4 112.3 .6 1.5 1.5 2.1 -4.3 .9 NOTE. Indexes are seasonally adjusted. tial use and automotive gasoline, declined since the first quarter, was little changed in sharply. Auto assemblies rose to an annual rate September. Output of total materials was unof 7.4 million units in September from the rate of changed, as gains in both durables and nondur- 7.0 million units in August, but production of ables were offset by a sharp drop in energy trucks for consumer use fell about 2 percent. materials. Among durables, production of parts Output of home goods, such as appliances, de- for both consumer durables and for equipment clined after having increased in the previous two rose, but basic metals, notably steel, declined. months. Within nondurables, chemical materials ad- All major components of business equipment vanced further, while textiles and paper were posted gains in September, with the largest rise little changed. The decline in energy materials again occurring in manufacturing equipment; reflected the curtailment of electricity generaover the past year, business equipment has ex- tion. panded 10 percent. Production of construction In industry groups, manufacturing output insupplies, which has been sluggish, on balance, creased 0.2 percent in September, with the most significant gains occurring in nonelectrical ma- Total industrial production—Revisions chinery, autos, and chemicals; however, steel Estimates as shown last month and current estimates production fell again after having risen sharply in July. Mining output rose 0.2 percent in Septem- Percentage change Index (1977=100) from previous ber, as coal production advanced. Production at MMoonntthh months utilities declined more than 4 percent, reflecting Previous Current Previous Current the plunge in electricity generation. June 136.5 136.5 .3 .3 July 137.9 138.1 1.0 1.2 August 138.2 138.3 .2 .2 Sept 138.3 .0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Announcements NEW ECONOMIC MEASURES to help ease the operational difficulties and lessen ANNOUNCED BY THE the risks imposed on depository institutions as a GOVERNMENT OF MEXICO result of the court's order. Comment on the proposals is requested by December 30, 1988. The U.S. Treasury Department and the Federal The Board also requested comment by Decem- Reserve welcome the economic measures re- ber 30 on other amendments to Regulation CC cently announced by the government of Mexico. that would clarify various provisions of the reg- The U.S. financial authorities believe that these ulation and help depository institutions to undermeasures build upon the progress already stand and comply with the regulation. achieved in the sustained adjustment effort undergone by the Mexican economy. Mexico's adjustment record, particularly the process of FEE SCHEDULES AVAILABLE FOR fiscal consolidation and the structural transfor- SERVICES PROVIDED BY mation of its external sector, has established the FEDERAL RESERVE BANKS basic conditions for the renewal of sustained economic growth. The Federal Reserve Board announced on No- In the context of normal consultations between vember 1, 1988, the 1989 fee schedules for sercountries with close economic relations, the U.S. vices provided by the Reserve Banks. The maand Mexican authorities have agreed that Mex- jority of the 1989 fees are the same as those ico's strengthened economic policies merit sup- currently imposed, and they generally become port. Accordingly, the U.S. Treasury and the effective January 1, 1989. Federal Reserve are prepared to develop a short- The fee schedules apply to check collection, term bridge loan of up to $3.5 billion, depending automated clearinghouse transactions, wire on the development of loan programs by Mexico transfer of funds and net settlement, definitive with the World Bank and with the International safekeeping, noncash collection, book-entry, and Monetary Fund. check payor bank services. The 1989 fee schedules are available from the Reserve Banks. In 1989, total costs for priced services, includ- FINAL RULING UNDER ing the private sector adjustment factor (PSAF), EXPEDITED FUNDS AVAILABILITY ACT are projected to be $684.9 million. Total revenue is estimated at $707.8 million, resulting in a 103.4 The Federal Reserve Board issued on October percent recovery rate. 26, 1988, a final ruling under the Expedited The 1989 recovery rate may be optimistic Funds Availability Act stating that "payable because costs for check services may be higher through" checks must be treated as local or than anticipated as a result of the impact of the nonlocal based on the location of the institution Expedited Funds Availability Act and Regulation on which they are written rather than the location CC on Reserve Bank operations. The proposed of the "payable through" bank. This action fees for 1989 are based on total costs, including finalized an interim amendment that was adopted the PSAF, but exclude special project costs. by the Board in August in response to a court At the same time, the Board approved the 1989 order. PSAF for Reserve Bank priced services of $69.7 At the same time, the Board published for million, a reduction of $6.5 million or 8.5 percent public comment four proposals that are designed from the $76.2 million targeted for 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

791 The PSAF is an allowance for the taxes that cial, data. The Digest provides a single source of would have been paid and the return on capital historical continuations of the statistics carried that would have been provided had the Federal regularly in the FEDERAL RESERVE BULLETIN. Reserve's priced services been furnished by a The Digest also offers a continuation of series private business firm. that formerly appeared regularly in the BULLE- TIN, as well as certain special, irregular tables REVISED LIST OF OTC STOCKS SUBJECT that the BULLETIN also once carried. TO MARGIN REGULATIONS NOW This issue of the Digest covers only 1987 AVAILABLE unless data were revised for earlier years. It serves to maintain the historical series first pub- The Federal Reserve Board published on Octo- lished in Banking and Monetary Statistics, ber 28, 1988, a revised list of over-the-counter 1941-1970, and the Digest for 1970-79 and yearly (OTC) stocks that are subject to its margin reg- issues thereafter. A Concordance of Statistics ulations, effective November 14, 1988. will be included with all orders. The Concor- This revised List of Marginable OTC Stocks dance provides a guide to tables that cover the supersedes the List of Marginable OTC Stocks same material in the current and the previous two that was effective on August 8, 1988. The years' issues of the Digest, the ten-year Digest changes that have been made to the list, which for 1970-79, and the BULLETIN. now includes 3,113 OTC stocks, are as follows: Copies of the Digest are available from the 96 stocks have been included for the first time, 85 Board of Governors of the Federal Reserve Sysunder National Market System (NMS) designa- tem, P.O. Box 27531, Richmond, VA 23261tion; 62 stocks previously on the list have been 7531. removed for substantially failing to meet the requirements for continued listing; 68 stocks CHANGES IN BOARD STAFF have been removed for reasons such as listing on a national securities exchange or involvement in The Board of Governors has announced the an acquisition. promotion of Stephen R. Malphrus from Associate Director to Deputy Executive Director in the The list includes all over-the-counter securities Office of the Executive Director for Information designated by the Board pursuant to its estab- Resources Management, effective October 23, lished criteria as well as all stocks designated as 1988. NMS securities for which transaction reports are required to be made pursuant to an effective The Board also announced the resignation of Elliott McEntee, Associate Director, Division of transaction reporting plan. Additional OTC secu- Federal Reserve Bank Operations, effective Norities may be designated as NMS securities in the vember 14. interim between the Board's quarterly publications and will be immediately marginable. The SYSTEM MEMBERSHIP: ADMISSION OF next publication of the Board's list is scheduled STATE BANKS for February 1989. Besides NMS-designated securities, the Board The following state banks were admitted to memwill continue to monitor the market activity of bership in the Federal Reserve System during the other OTC stocks to determine which stocks period September 1 through October 31, 1988: meet the requirements for inclusion and contin- Florida ued inclusion on the list. Live Oak Citizens Bank of Live Oak Ocala Independent Bank of Ocala PUBLICATION OF ANNUAL STATISTICAL Port Charlotte Community Bank DIGEST, 1987 . . . of Charlotte TV/irginia The Annual Statistical Digest, 1987 is now avail- Arlington Bank of Northern Virginia able. This one-year Digest is designed as a com- Herndon Bank of Potomac, Incorporated pact source of economic, and especially finan- Virginia Beach Resource Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

793 Legal Developments FINAL RULE—AMENDMENT TO REGULATIONS Camera Platforms International, Inc.: $.005 par com- G, T, U AND X mon CCA Industries, Inc.: Class A, warrants (expire The Board of Governors is amending 12 C.F.R. Parts 06-30-89) 207, 220, 221 and 224, its Securities Credit Transac- Chief Automotive Systems, Inc.: $.10 par common tions; List of Marginable OTC Stocks. The List of Coated Sales, Inc.: $.01 par common Marginable OTC Stocks is comprised of stocks traded Computer Microfilm Corporation: $.25 par common over-the-counter (OTC) that have been determined by Corvus Systems: No par common the Board of Governors of the Federal Reserve Sys- Crazy Eddie, Inc.: 6% convertible subordinated detem to be subject to the margin requirements under bentures certain Federal Reserve regulations. The List is published four times a year by the Board as a guide for Decor Corporation: $.01 par common lenders subject to the regulations and the general Dewey Electronics Corporation: $.01 par common public. This document sets forth additions to or dele- DNA Plant Technology Corp.: Warrants (expire tions from the previously published List effective 01-17-90) August 8, 1988, and will serve to give notice to the public about the changed status of certain stocks. Eagle Telephonies, Inc.: Class A, warrants (expire Effective November 14, 1988, accordingly, pursuant 10-12-88) to the authority of sections 7 and 23 of the Securities Empire Insurance Company: $1.00 par common Exchange Act of 1934, as amended (15 U.S.C. §§ 78g Endotronics, Inc.: No par common and 78w), and in accordance with 12 C.F.R. §§ 207.2(k) and 207.6(c) (Regulation G), 12 C.F.R. Finest Hour, Inc.: No par common §§ 220.2(s) and 220.17(c) (Regulation T), and First World Cheese, Inc.: Warrants (expire 06-06-91) 12 C.F.R. §§ 221.2(j) and 221.7(c) (Regulation U), Fountain Powerboat Industries, Inc.: Warrants (expire there is set forth below a listing of deletions from and 12-15-91) additions to the Board's List: Gateway Medical Systems, Inc.: $.10 par common Deletions from List Gemcraft, Inc.: $.10 par common General Physics Corporation: $.025 par common Geneve Capital Group, Inc.: $.10 par common Stocks Removed for Failing Continued Listing Requirements Healthways Systems, Inc.: $.01 par common HITK Corporation: $.001 par common Alaska Bancorporation: $.01 par common Amcole Energy Corporation: $.01 par common Infinity Broadcasting Corp.: Class A, $.01 par com- American First Corporation: $1.00 par common mon American Health Companies, Inc.: $.01 par common Intel Corporation: Warrants (expire 08-15-88) American Telemedia Network, Inc.: No par common International Robomation/Intelligence: No par com- Anchor Financial Corporation: $6.00 par common mon Invention, Design, Engineering Associates, Inc.: Bancoklahoma Corporation: $2.00 par common $.01 par common Bercor, Inc.: No par common Bildner, J. Sons, Inc.: $.01 par common Knutson Mortgage Corporation: $.01 par common Bioplasty, Inc.: $.01 par common Butler, John O., Company: $.01 par common Medmaster Systems, Inc.: Warrants (expire 07-10-91) Memory Metals, Inc.: $.01 par common Calstar, Inc.: $.10 par common Microwave Filter Company, Inc.: $.10 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 Federal Reserve Bulletin • December 1988 North American Holding Corp.: $.01 par common, Concurrent Computer Corporation: $.01 par common Class A, non-voting, $.001 par common Crosby, Philip Associates, Inc.: $.01 par common Crystal Oil Company: $.01 par common, $.01 par Pay ' Save, Inc.: $1.00 par common convertible, preferred Precision Target Marketing, Inc.: $.01 par common, Cyprus Minerals Company: No par common Warrants (expire 08-23-89) Datametrics Corporation: No par common Quality Systems, Inc.: $.01 par common Daxor Corporation: $.01 par common Diagnostic Products Corporation: No par common Ramtek Corporation: $.01 par common Diasonics, Inc.: No par common Ritzy's, G. D., Inc.: No par common Dresher, Inc.: $.01 par common Saratoga Standardbreds, Inc.: $.01 par common Energas Company: No par common Scientific Micro Systems, Inc.: $.01 par common Epsco, Inc.: $1.00 par common Sooner Defense of Florida, Inc.: $.01 par common Southern Hospitality Corporation: $.081/3 par common Farm Fresh, Inc.: $.01 par common First Kentucky National Corporation: No par com- Thermal Profiles, Inc.: $.01 par common mon Trans World Airlines, Inc.: $6.00 par cumulative, First Union Corporation: $3.33V3 par common exchangeable preferred Freedom Federal Savings Bank (Illinois): $.01 par common United Financial Group, Inc.: No par common Frozen Food Express Industries, Inc.: $1.50 par common Vanzetti Systems Inc.: $.01 par common Vega Biotechnologies, Inc.: $.01 par common Gartner Group, Inc., The: $.01 par common Virgin Group, PLC: American Depository Receipts Grandview Resources, Inc.: No par common Webb, Del E., Corporation: Warrants (expire Hooper Holmes, Inc.: $.01 par common 02-01-90) Hunter-Melnor, Inc.: $.01 par common Wessex Corp.: $.01 par common IEC Electronics Corporation: $.05 par common Stocks Removed for Listing on a National Securities Exchange or Being Involved in an Josephson International, Inc.: $.05 par common Acquisition Lancer Corporation: $.01 par common Albany International Corp.: Class A, $.001 par com- Lewis, Palmer G. Company, Inc.: $1.00 par common mon Amcast Industrial Corporation: No par common Matrix Science Corporation: $.01 par common Micom Systems, Inc.: $.01 par common Baker, Fentress & Company: $1.00 par common Middleby Corporation, The: $.01 par common Bear Automotive Service Equipment Co.: $.01 par common National Guardian Corporation: $.10 par common Berkline Corporation, The: $1.00 par common Norton Enterprises, Inc.: $.01 par common Beverly Savings Bank (Massachusetts): $.10 par common P & C Foods, Inc.: $.01 par common BIW Cable Systems, Inc.: $.40 par common Photronics Corporation: $.10 par common Brougher Insurance Group, Inc.: No par common Shoney's South, Inc.: $.05 par common Capital Wire & Cable Corporation: No par common Silicon Systems, Inc.: $.01 par common Central Pacific Corporation: No par common Simmons Airlines, Inc.: No par common Century Communications Corp.: Class A, $.01 par Southold Savings Bank, The (New York): $1.00 par common common Century Papers, Inc.: $1.00 par common Southstate Bank for Savings: $.10 par common Command Airways, Inc.: $.01 par common Sovran Financial Corporation: $5.00 par common Comprehensive Care Corporation: $.10 par common Spectramed, Inc.: $.01 par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 795 SPI Pharmaceuticals, Inc.: $.01 par common Chemical Financial Corp.: $10.00 par common System Industries, Inc.: $.01 par common Cliffs Drilling Company: No par, convertible, exchangeable preferred stock Taunton Savings Bank: $.10 par common Colorocs Corporation: Class C, warrants (expire TCBY Enterprises, Inc.: $.10 par common 03-31-89)—Class D, warrants (expire 10-25-88) Total Erickson Resources, Ltd.: $.01 par common Concord Camera Corp.: No par common Constar International, Inc.: Warrants (expire Unicare Financial Corp.: No par common 11-13-89) USP Real Estate Investment Trust: $1.00 par shares of Convergent Solutions, Inc.: $.01 par common, Warbeneficial interest rants (expire 05-15-92) Coral Gold Corporation: No par common Welbilt Corporation: $.10 par common Cornucopia Resources Ltd.: No par common Wellman, Inc.: $.001 par common Corporate Data Sciences, Inc.: No par common Western Federal Savings and Loan Association (Cal- Critical Industries, Inc.: $.001 par common ifornia): $1.00 par common Wings West Airlines, Inc.: No par common Dekalb Genetics Corporation: Class B, no par com- Wyse Technology: No par common mon DF Southeastern, Inc.: $1.00 par common XIDEX Corporation: $.0875 par common, Warrants (expire 04-16-93) Eagle Bancorp, Inc.: $.10 par common Eastland Financial Corp.: $.01 par common Zondervan Corporation, The: $1.00 par common Environmental Control Group, Inc.: $.10 par common Essex County Gas Company: $2.50 par common Additions to the List First Federal Savings Bank of Perry: $1.00 par com- ADT Limited: American Depository Receipts mon All American Semiconductor, Inc.: $.01 par common First of Long Island Corporation, The: $.10 par com- American Continental Corporation: $1.00 par, exmon changeable preferred Franklin First Financial Corporation: $.01 par com- American Power Conversion Corporation: $.01 par mon common ARIX Corporation: No par common Genlyte Group Incorporated: $.01 par common Asiamerica Equities, Inc.: $1.00 par common GNI Group, Inc., The: No par common Assix International, Inc.: $.001 par common, War- Goodheart-Willcox Company, Inc.: $ 1.00 par common rants (expire 07-19-91) Gull Laboratories, Inc.: $.01 par common Associated Natural Gas Corporation: $.10 par common Healthwatch, Inc.: No par common High Plains Corporation: $.10 par common B & H Bulk Carriers, Ltd.: $.01 par common Home Federal Savings Bank (South Carolina): Babbage's, Inc.: $.10 par common $1.00 par common Bailey Corporation: $.10 par common Home Port Bancorp, Inc.: $.10 par common BI Incorporated: No par common Biogen, Inc.: Warrants (expire 06-30-94) BMC Software, Inc.: $.01 par common Imagine Films Entertainment, Inc.: $.01 par common Intercargo Corporation: $1.00 par common Candela Laser Corporation: $.01 par common Intervoice, Inc.: No par common Casual Male Corporation, The: $.01 par common Cellular, Inc.: $.001 par common Kinder-Care Learning Centers, Inc.: $.01 par common Centennial Beneficial Corp.: No par common KWIK Products International Corporation: No par Ceramics Process Systems Corporation: $.01 par com- common mon Charter Federal Savings Bank (New Jersey): $.01 par Landmark American Corporation: $.01 par common common Landmark Graphics Corporation: $.05 par common Chemex Pharmaceuticals, Inc.: Class 1, warrants (ex- Long Island City Financial Corporation, The: $.10 par pire 05-20-90) common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 Federal Reserve Bulletin • December 1988 Mayflower Financial Corporation: $.01 par common AMENDMENT TO REGULATION CC Micro America, Inc.: $.01 par common The Board of Governors is amending 12 C.F.R. Part 229, its Regulation CC (Availability of Funds and Nalcap Holdings, Inc.: No par common Collection of Checks). The Board is adopting as a final National Media Corporation: $.10 par common rule, with minor technical changes, the interim amend- Neorx Corporation: $.02 par common ment to Regulation CC it adopted in August. The Novellus Systems, Inc.: No par common Board adopted the interim rule to conform the definition of "paying bank" in Regulation CC to the Expe- Olympic Savings Bank (Washington): $1.00 par comdited Funds Availability Act as interpreted by a court mon decision. The court found that in defining a payable through bank as the paying bank where a check is Pancretec, Inc.: No par common written on one bank but payable through another, Phoenix Technology Ltd.: $.001 par common Regulation CC was inconsistent with the language of Pride Petroleum Services, Inc.: No par common the Act. Effective October 25, 1988, 12 C.F.R. Part 229 is Ratners Group, PLC: American Depository Receipts amended as follows: Reliable Life Insurance Company, The: Class A, $1.00 par common Part 229—Availability of Funds and Collection Rock Financial Corporation: $3.33 par common of Checks 1. The authority citation for Part 229 continues to read Scientific Technologies, Incorporated: No par comas follows: mon Selfix, Inc.: $.01 par common Authority: Title VI of Pub. L. 100-86, 101 Stat. 552, Showscan Film Corporation: $.001 par common 635; 12 U.S.C. 4001 et seq. Sierra On-Line, Inc.: $.01 par common Silk Greenhouse, Inc.: $.01 par common Smithfield Companies, Inc., The: No par common 2. Section 229.2(z)(4) is revised to read as follows: Software Toolworks, Inc., The: $.01 par common Stake Technology Ltd.: No par common Section 229.2—Definitions Stotler Group Inc.: $1.00 par common Strictpfab, Inc.: $.02 par common Synoptics Communications, Inc.: No par common (z) * * * (4) The bank through which a check is payable and Tele-Optics, Inc.: $.01 par common, Warrants (expire to which it is sent for payment or collection, if the 08-11-89) check is not payable by a bank; or Tons of Toys, Inc.: $.01 par common Tuscarora Plastics, Inc.: No par common Section 229.16—[Amended] Unigene Laboratories, Inc.: $.01 par common, Warrants (expire 08-11-92) 3. Section 229.16(b)(2) is amended by adding after the United National Bancorp: $2.50 par common first sentence of the footnote the following new sen- Unitronix Corporation: No par common tence to read as follows: VMS Mortgage Investors, L. P. Ill: Depository units 1 * * * A bank that makes funds from nonlocal checks of limited partnership interest available for withdrawal within the time periods required for local checks under §§ 229.11, 229.12, and 229.13 is not required to provide this disclosure on payable through Washington Savings Bank, F.S.B. (Maryland): checks to its customers. * * * $.01 par common Weitek Corporation: No par common 4. Appendix E—Commentary to Part 229, is amended Wetterau Properties, Inc.: $.01 par common by adding following the fourth paragraph of the Com- Wholesale Club, Inc., The: No par convertible pre- mentary to § 229.16(b) a new paragraph to read as ferred follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 797 Appendix E—Commentary Appendix F—Official Board Interpretations; Preemption Determinations Section 229.16—Specific Availability Policy Disclosures California Background (b) * * * Generally, a bank that distinguishes in its disclosure The Board has been requested, in accordance with between local and nonlocal checks based on the rout- § 229.20(d) of Regulation CC (12 C.F.R. Part 229), to ing number on the check must disclose to its custom- determine whether the Expedited Funds Availability ers that certain checks, such as some credit union Act (the "Act") and Subpart B (and in connection payable through drafts, will be treated as local or therewith, Subpart A) of Regulation CC preempt the nonlocal based on the location of the bank by which provisions of California law concerning availability of they are payable (e.g., the credit union), and not on the funds. This preemption determination specifies those basis of the location of the bank whose routing number provisions of the California funds availability law that appears on the check. A bank is not required to supersede the Act and Regulation CC. (See also the provide this disclosure, however, if it makes the Board's preemption determination regarding the Uniproceeds of both local and nonlocal checks available form Commercial Code, § 4-213(5), pertaining to for withdrawal within the time periods required for availability of cash deposits.) local checks in §§ 229.11, 229.12, and 229.13. California has four separate sets of regulations establishing maximum availability schedules. The regulations applicable to commercial banks and branches of foreign banks located in California (Cal. Admin. * * * ** Code tit. 10, §§ 10.190400-10.190407) were promulgated by the Superintendent of Banks. The regulations AMENDMENT TO REGULATION CC applicable to savings banks and savings and loan associations (Cal. Admin. Code tit. 10, §§ 106.200- The Board of Governors is amending 12 C.F.R. Part 106.205) were adopted by the Savings and Loan Com- 229, its Regulation CC (Availability of Funds and missioner. The regulations applicable to credit unions Collection of Checks), for the laws of California, (Cal. Admin. Code tit. 10, § 901) and to industrial loan Connecticut, Maine, Massachusetts, New Mexico, companies (Cal. Admin. Code tit. 10, § 1101) were New York, and Rhode Island. The Expedited Funds adopted by the Commissioner of Corporations. Availability Act provides standards for determining All the regulations were adopted pursuant to Caliwhether state law governing funds availability super- fornia Financial Code § 866.5 and California Commersedes, or is preempted by, federal law. Under Regu- cial Code § 4213(4)(a), under which the appropriate lation CC, the Board will issue preemption determina- state regulatory agency for each depository institution tions with respect to state law upon request. must issue administrative regulations to define a rea- Effective October 25, 1988, 12 C.F.R. Part 229 is sonable time for permitting customers to draw on amended as follows: items received for deposit in the customer's account. California Financial Code § 867 also establishes avail- Part 229—[Amended] ability periods for funds deposited by cashier's check, certified check, teller's check, or depository check 1. The authority citation for Part 229 continues to read under certain circumstances. Finally, California Fias follows: nancial Code § 866.2 establishes disclosure requirements. Authority: Title VI of Pub. L. 100-86, 101 Stat. 552, The Board's determination with respect to these 635, 12 U.S.C. 4001 et seq. California laws and regulations governing the funds availability requirements applicable to depository in- 2. Appendix F is amended by removing the New York stitutions in California are as follows. preemption determination, and adding preemption determinations for the states of California, Connecticut, Commercial Banks and Branches of Foreign Banks Maine, Massachusetts, New Mexico, New York, and Rhode Island alphabetically to read as follows: [RESERVED] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 Federal Reserve Bulletin • December 1988 Savings Institutions scope than the definition of "check" in the Act and Regulation CC. The Commissioner's regulations, how- [RESERVED] ever, define the term "item" to include checks, negotiable orders of withdrawal, share drafts, warrants, Credit Unions and Industrial Loan Companies and money orders. As limited by the state regulations, the state law applies only to instruments that are also Each credit union and federally-insured industrial loan "checks" as defined in § 229.2(k) of Regulation CC. company that maintains an office in California for the acceptance of deposits must make funds deposited by Availability Schedules check available for withdrawal in accordance with the following table: Temporary Schedule. The California regulations provide that in-state nonlocal checks must be made available for withdrawal not later than the sixth business Availability day following deposit. This time period is shorter than Industrial the seventh business day availability required for Credit Union Loan nonlocal checks under § 229.11(c) of Regulation CC, Company although it is not shorter than the schedules for nonlocal checks set forth in $ 229.11(c)(2) and Appendix $100 or less checks; U.S. Treasury checks; state/local government B-l of Regulation CC. Thus, the state schedules for checks; 1111sssstttt ddddaaaayyyy 1111sssstttt ddddaaaayyyy On us checks; cashier's/certifies/ in-state nonlocal checks supersede the federal schedteller's/depository checks 2222nnnndddd ddddaaaayyyy 2222nnnndddd ddddaaaayyyy ule to the extent that they apply to an item payable by 6666tttthhhh ddddaaaayyyy 6666tttthhhh ddddaaaayyyy Out-of-state checks 11110000tttthhhh ddddaaaayyyy 11112222tttthhhh ddddaaaayyyy a California institution that is defined as a nonlocal check under Regulation CC, and is not subject to NOTE: These time periods are stated in terms of availability for reduced schedules under § 229.11(c)(2) and Appendix withdrawal not later than the Xth business day following the banking day of deposit to facilitate comparison with Regulation CC. State B-l. regulations are stated in terms of availability at the start of the Under the California regulations, credit unions and business day subsequent to the number of days specified in the industrial loan companies must provide next-day availregulation. ability to first-indorsed items issued by any federally- Coverage insured institution. This regulatory requirement, however, has been superseded by § 867 of the California Financial Code, which requires depository institutions The California law and regulations govern the avail- to make funds deposited by cashier's check, teller's ability of funds to "demand deposits, negotiable order check, certified checks, or depository check available of withdrawal draft accounts, savings deposits subject for withdrawal on the second business day following to automatic transfers, share draft accounts, and all deposit, if certain conditions are met. This requiresavings deposits and share accounts, other than time ment became effective January 1, 1988. deposits." (California Financial Code § 886(b)). The The Regulation CC next-day availability requirefederal preemption of state funds availability laws only ment for cashier's checks and teller's checks applies applies to "accounts" subject to Regulation CC, only to those checks issued for remittance purposes. which generally includes transaction accounts. Thus, To the extent that the state second business day the California funds availability regulations continue availability requirement applies to cashier's and tellto apply to deposits in savings and other accounts er's checks issued for other than remittance purposes, (such as accounts in which the account-holder is the state two-day requirement supersedes the federal another bank) that are not "accounts" under Regula- local and nonlocal schedules. tion CC. (Note, however, that under § 229.19(e) of The California regulations do not specify whether Regulation CC, Holds on other funds, the federal they apply to deposits of checks at nonproprietary availability schedules may apply to savings, time, and ATMs. Under the temporary schedule in Regulation other accounts not defined as "accounts" under Reg- CC, deposits at nonproprietary ATMs must be made ulation CC in certain circumstances.) available for withdrawal at the start of the seventh The California law applies to any "item" (California business day after deposit. To the extent that the Financial Code § 866.5 and California Commercial California schedules provide for shorter availability Code § 4213 (4)(a)). The California Commercial Code for deposits at nonproprietary ATMs, they would defines "item" to mean "any instrument for the pay- supersede the temporary schedule in Regulation CC ment of money even though it is not negotiable ..." for deposits at nonproprietary ATMs specified in (Cal. Com. Code § 4104(g)). This term is broader in § 229.11(d). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 799 Permanent schedule. Under the California regula- state nonlocal checks under the temporary schedule; tions, credit unions and industrial loan companies cashier's or teller's checks that are not deposited with must provide next-day availability to first-indorsed a special deposit slip or at a staff teller station), the items issued by any federally-insured institution. This state exceptions may be used to extend the state regulatory requirement, however, has been super- availability schedule up to the federal availability seded by § 867 of the California Financial Code, schedule. Once the deposit is held up to the federal which requires depository institutions to make funds availability limit under a state exception, the deposideposited by cashier's check, teller's check, certified tary bank may further extend the hold under any check, or depository check available for withdrawal federal exception that can be applied to the deposit. on the second business day following deposit, if cer- Any time a depositary bank invokes an exception to tain conditions are met. This requirement became extend a hold beyond the time periods otherwise effective January 1, 1988. permitted by law, it must give notice of the extended The Regulation CC next-day availability require- hold to its customer in accordance with § 229.13(g) of ment for cashier's and teller's checks applies only to Regulation CC. those checks issued for remittance purposes. To the Business Day/Banking Day. The definitions of "busextent that the state second business day availability iness day" and "banking day" in the California regurequirement applies to cashier's and teller's checks lations are preempted by the Regulation CC definition issued for other than remittance purposes, the state of those terms. Thus, for determining the permissible two-day requirement supersedes the federal local and hold under the California schedules that supersede the nonlocal schedules. Regulation CC schedule, deposits are considered Next-Day Availability. Credit unions and industrial made on the specified number of "business days" loan companies in California are required to give following the "banking day" of deposit. next-day availability to items drawn by the State of California or any of its departments, agencies, or Disclosures political subdivisions. California law supersedes the federal law in that the state law does not condition California law (Cal. Fin. Code § 866.2) requires deposnext-day availability on receipt at a staffed teller itory institutions to provide written disclosures of their station or use of a special deposit slip. general availability policies to potential customers California credit unions and industrial loan compa- prior to opening any deposit account. The law also nies must provide second business day availability to requires that preprinted deposit slips and ATM deposit checks drawn on the depositary bank. Regulation CC envelopes contain a conspicuous summary of the requires next-day availability for checks deposited in a general policy. Finally, the law requires a depository branch of the depositary bank and drawn on the same institution to provide specific notice of the time the or another branch of the same bank if both branches customer may withdraw funds deposited by check or are located in the same state or the same check similar instrument into a deposit account if the funds processing region. Thus, generally, the Regulation CC are not available for immediate withdrawal. rule for availability of on us checks preempts the Section 229.20(c)(2) of Regulation CC provides that California regulations. To the extent, however, that an inconsistency may exist when a state law provides for on us check is (1) drawn on an out-of-state branch of disclosures or notices concerning funds availability the depositary bank that is not in the same check relating to accounts. California Financial Code § 866.2 processing region as the branch in which it was depos- requires disclosures that differ from those required by ited, or (2) deposited at an off-premises ATM or Regulation CC, and therefore is preempted to the another facility of the depositary bank that is not extent that it applies to "accounts" as defined in considered a branch under federal law, the state Regulation CC. The state law continues to apply to regulation supersedes the Regulation CC availability savings accounts and other accounts not governed by requirements. Regulation CC disclosure requirements. Exceptions to the Availability Schedules. California law provides exceptions to the state availability sched- Connecticut ules for large deposits, new accounts, repeated overdrafters, doubtful collectibility, foreign items, and Background emergency conditions. In all cases where the federal availability schedule preempts the state schedule, only The Board has been requested, in accordance with the federal exceptions will apply. For deposits that are § 229.20(d) of Regulation CC (12 C.F.R. Part 229), to covered by the state availability schedule (e.g., in- determine whether the Expedited Funds Availability Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 Federal Reserve Bulletin • December 1988 Act (the "Act") and Subpart B (and in connection as "accounts" under Regulation CC, in certain cirtherewith, Subpart A) of Regulation CC, preempt cumstances.) provisions of Connecticut law relating to the availabil- The Connecticut statute applies to "items" deposity of funds. This preemption determination specifies ited in accounts. This term encompasses instruments those provisions of the Connecticut funds availability that are not defined as "checks" in Regulation CC law that supersede the Act and Regulation CC. (See (§ 229.2(k)), such as nonnegotiable instruments, and also the Board's preemption determination regarding are therefore not subject to Regulation CC's provithe Uniform Commercial Code, § 4-213(5), pertaining sions governing funds availability. Those items that to availability of cash deposits.) are subject to Connecticut law but are not subject to In 1987, Connecticut amended its statute governing Regulation CC will continue to be covered by the state funds availability (Conn. Gen. Stat. § 36-9v), which availability schedules and exceptions. requires Connecticut depository institutions to make funds deposited in a checking, time, interest, or sav- Availability Schedules ings account available for withdrawal within specified periods. Temporary Schedule. Connecticut law provides that Generally, the Connecticut statute, as amended, certain checks that are nonlocal under Regulation CC provides that items deposited in a checking, time, must be available in a shorter time (sixth business day interest, or savings account at a depository institution after deposit for checks payable by depository institumust be available for withdrawal in accordance with tions not located in Connecticut) than under the fedthe following table: eral regulation (seventh business day after deposit under the temporary schedule for nonlocal checks). Accordingly, the Connecticut law supersedes Regulation CC with respect to nonlocal checks (other than Availability checks covered by Appendix B-l) deposited in "accounts" until the federal permanent availability 222nnnddd dddaaayyy schedules take effect on September 1, 1990. 444ttthhh dddaaayyy Out-of-state checks 666ttthhh dddaaayyy The Connecticut statute does not specify whether it applies to deposits of checks at nonproprietary ATMs. Under the temporary schedule in Regulation CC, Exceptions to the schedules are provided for items deposits at nonproprietary ATMs must be made availreceived for deposit for the purpose of opening an able for withdrawal at the start of the seventh business account and for items that the depositary bank has day after deposit. To the extent that the Connecticut reason to believe will not clear. The Connecticut schedules provide for shorter availability for deposits statute also requires availability policy disclosures to at nonproprietary ATMs, they would supersede the depositors in the form of written notices and notices temporary schedule in Regulation CC for deposits at posted conspicuously at each branch. nonproprietary ATMs specified in § 229.11(d). Exceptions to the Availability Schedule. The Con- Coverage necticut law provides exceptions for items received for deposit for the purpose of opening new accounts and The Connecticut statute governs the availability of for items that the depositary bank has reason to funds deposited in savings and time accounts, as well believe will not clear. In all cases where the federal as "accounts" as defined in § 229.2(a) of Regulation availability schedule preempts the state schedule, only CC. The federal preemption of state funds availability the federal exceptions will apply. For deposits that are requirements only applies to "accounts" subject to covered by the state availability schedule (e.g., non- Regulation CC, which generally consist of transaction local out-of-state checks under the temporary schedaccounts. Regulation CC does not affect the Connect- ule), the state exceptions may be used to extend the icut statute to the extent that the state law applies to state availability schedule (of six business days) to deposits in savings and other accounts (including meet the federal availability schedule (of seven busitransaction accounts where the account holder is a ness days). Once the deposit is held up to the federal bank, foreign bank or the U.S. Treasury) that are not availability schedule limit under a state exception, the "accounts" under Regulation CC. (Note, however, depositary bank may further extend the hold under that under § 229.19(e) of Regulation CC, Holds on any federal exception that can be applied to the other funds, the federal availability schedules may deposit. Any time a depositary bank invokes an exapply to savings, time, and other accounts not defined ception to extend a hold beyond the time periods Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 801 otherwise permitted by law, it must give notice of the must be made available for withdrawal in accordance extended hold to its customer, in accordance with with the Act and Regulation CC (Regulation 18- § 229.13(g) of Regulation CC. IV(A)(1)). The state regulation provides that an institution's funds availability policies for accounts subject Disclosures to Regulation CC be disclosed in a manner consistent with the Regulation CC requirements. Funds availabil- The Connecticut statute (Conn. Gen. Stat. § 36-9v(b)) ity policies for accounts not subject to Regulation CC requires written notice to depositors of an institution's must be disclosed in accordance with the state regucheck hold policy and requires a notice of the policy to lation (Regulation 18-IV(A)(2)). be posted in each branch. Regulation CC preempts state disclosure require- Coverage ments concerning funds availability that relate to "accounts" that are inconsistent with the federal The Maine law and regulation govern the availability requirements. The state requirements are different of funds to any deposit account, as defined in the from, and therefore inconsistent with, the federal Board's Regulation D (12 C.F.R. 204.2(a)). This covdisclosure rules. (§ 229.20(c)(2)). Thus, the Connecti- erage is broader than the "accounts" covered in cut statute is preempted by Regulation CC to the Regulation CC. The Maine law continues to apply to extent that these disclosure provisions apply to all deposit accounts, including those that are not "accounts" as defined by Regulation CC. The Con- accounts under Regulation CC. (Note, however, that necticut disclosure rules would continue to apply to under § 229.19(e) of Regulation CC, Holds on other accounts, such as savings and time accounts, not funds, the federal availability schedules may apply to governed by the Regulation CC disclosure require- savings, time, and other accounts not defined as ments. "accounts" under Regulation CC, in certain circumstances.) Maine Availability Schedules and Disclosures Background The Maine regulation incorporates the Regulation CC The Board has been requested, in accordance with availability and disclosure requirements with respect § 229.20(d) of Regulation CC (12 C.F.R. Part 229), to to deposits to accounts covered by Regulation CC. determine whether the Expedited Funds Availability Because the state requirements are consistent with the Act (the "Act") and Subpart B (and in connection federal requirements, the Maine regulation is not pretherewith, Subpart A) of Regulation CC, preempt the empted by, nor does it supersede, the federal law. provisions of Maine law concerning the availability of funds. This preemption determination addresses the Massachusetts relation of the Act and Regulation CC to the Maine funds availability law. (See also the Board's preemption determination regarding the Uniform Commercial Background Code, § 4-213(5), pertaining to availability of cash deposits.) The Board has been requested, in accordance with In 1985, Maine adopted a statute governing funds § 229.20(d) of Regulation CC (12 C.F.R. Part 229), to availability (Title 9-B MRSA § 241(5)), which requires determine whether the Expedited Funds Availability Maine financial institutions to make funds deposited in Act (the "Act") and Subpart B (and in connection a transaction account, savings account, or time ac- therewith, Subpart A) of Regulation CC, preempt count available for withdrawal within a reasonable provisions of Massachusetts law relating to the availperiod. The Maine statute gives the Superintendent of ability of funds. This preemption determination ad- Banking for the State of Maine the authority to pro- dresses the relationship of the Act and Regulation CC mulgate rules setting forth time limitations and disclo- to the Massachusetts funds availability law. (See also sure requirements governing funds availability. the Board's preemption determination regarding the The Superintendent of Banking issued regulations Uniform Commercial Code, § 4-213(5), pertaining to implementing the Maine funds availability statute, availability of cash deposits.) effective July 1,1987 (Regulation 18(IV)), and adopted In 1988, Massachusetts amended its statute governamendments to this regulation, effective September 1, ing funds availability (Mass. Gen. L. ch. 167D, § 35), 1988. Under the revised regulation, funds deposited to to require Massachusetts banking institutions to make any deposit account in a Maine financial institution funds available for withdrawal and disclose their avail- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin • December 1988 ability policies in accordance with the Act and Regu- New Mexico lation CC. The Massachusetts law, however, provides that "local originating depository institution" is to be Background defined as any originating depository institution located in the Commonwealth. The Board has been requested in accordance with § 229.20(d) of Regulation CC (12 C.F.R. Part 229), to Coverage determine whether the Expedited Funds Availability Act (the "Act") and Subpart B (and in connection therewith, Subpart A) of Regulation CC, preempt The Massachusetts statute governs the availability of provisions of New Mexico law relating to the availfunds deposited in "any demand deposit, negotiable ability of funds. This preemption determination specorder of withdrawal account, savings deposit, share ifies those provisions in the New Mexico funds availaccount or other asset account." Regulation CC apability law that supersede the Act and Regulation CC. plies only to "accounts" as defined in § 229.2(a). (See also the Board's preemption determination re- Regulation CC does not affect the Massachusetts garding the Uniform Commercial Code, § 4-213(5), statute to the extent that the state law applies to pertaining to availability of cash deposits.) deposits in savings and other accounts (including In 1987, New Mexico adopted a statute governing transaction accounts where the account holder is a funds availability (N.M. Stat. Ann. § 58-3-4 (1978, bank, foreign bank, or the U.S. Treasury) that are not Supp. 1987)), which requires New Mexico financial "accounts" under Regulation CC. (Note, however, institutions to make funds deposited into retail acthat under § 229.19(e) of Regulation CC, Holds on counts available for withdrawal after a reasonable other funds, the federal availability schedules may period of time. Section 4A of the New Mexico statute apply to savings, time, and other accounts not defined establishes the time frames within which financial as "accounts" under Regulation CC, in certain cirinstitutions must make funds deposited by checks or cumstances.) share drafts available for withdrawal if the checks or share drafts are drawn and payable on demand at other Availability Schedules financial institutions located in the continental United States. Section 4B of the statute defines terms and The Massachusetts definition of "local originating specifies availability for checks deposited in branch depository institution" (local paying bank in Regulaoffices of certain financial institutions, § 4C specifies tion CC terminology) requires that in-state checks that exceptions to the availability schedules, and § 4D are nonlocal checks under Regulation CC be made specifies damages recoverable for a violation of this available in accordance with the Regulation CC local statute. schedule. The Massachusetts law supersedes Regula- Generally, the New Mexico law provides that tion CC under the temporary and permanent schedule checks and share drafts, other than "on us" checks, with respect to nonlocal checks payable by banks drawn and payable on demand at a financial institution located in Massachusetts and deposited into and deposited into an individual or household account "accounts." Regulation CC preempts the Massachumust be made available for withdrawal at the beginsetts law, however, to the extent the state law does not ning of the third business day after deposit for checks define banks located outside of Massachusetts, but in or share drafts drawn and payable on demand at the same check processing region as the paying bank, financial institutions located within the same municias "local originating depository institutions." pality as the depositary bank, and for checks or share drafts deposited in a branch office of a financial insti- Disclosures tution if the main office of that financial institution is located in the same municipality as the depositary The Massachusetts regulation incorporates the Regu- bank. Other in-state checks or share drafts must be lation CC disclosure requirements with respect to both made available at the opening of the fourth business accounts covered by Regulation CC and savings and day after deposit. Checks or share drafts drawn and other accounts not governed by the federal regulation. payable on demand at any other financial institution Because the state requirements are consistent with the located within continental United States must be made federal requirements, the Massachusetts regulation is available at the beginning of the sixth business day not preempted by, nor does it supersede, the federal after deposit. law. The Massachusetts disclosure rules would con- Exceptions to the schedules are provided for docutinue to apply to accounts not governed by the Regu- mentary drafts, accounts which have been open less lation CC disclosure requirements. than 60 days, checks or share drafts with two-party Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 803 indorsements, checks or share drafts in an amount served by two Federal Reserve check processing greater than the average balance in the account over regions and, therefore, while most checks and share the last 12 months or the average balance since the drafts subject to this schedule will be local under account was opened, whichever is less, and checks or Regulation CC, some checks and share drafts covered share drafts deposited in an account on which six or by this schedule may be nonlocal under Regulation more nonsufficient fund checks or share drafts were CC. Under the temporary schedule in Regulation CC, presented in the prior six-month period. the proceeds of local checks must be available for withdrawal at the start of the third business day after Coverage deposit, but Regulation CC permits a time period adjustment for withdrawals by cash and similar means The New Mexico statute is limited to retail accounts that permits a depositary bank to delay the time it must and does not apply to business accounts. No portion of make funds available for deposits of local checks the New Mexico statute supersedes Regulation CC for cleared outside a check clearinghouse arrangement. any "account" as that term is defined in Regulation Under the temporary schedule in Regulation CC, the CC that is not held by an individual or household. proceeds of nonlocal checks must be made available Regulation CC does not affect the New Mexico statute for withdrawal at the opening of the seventh business to the extent that the state law applies to time, savings, day following deposit. No time period adjustment is and other deposits that are not defined as "accounts" provided. New Mexico law supersedes this time peunder Regulation CC. (Note, however, that under riod adjustment for local checks under the temporary § 229.19(e) of Regulation CC, Holds on other funds, schedule and for nonlocal checks coming within the the federal availability schedules may apply to sav- portion of the New Mexico schedule calling for availings, time, and other accounts not defined as ability on the third banking day after deposit. "accounts" under Regulation CC, in certain circum- The New Mexico statute calls for the proceeds of stances.) checks and share drafts to be made available at the The New Mexico statute is limited to checks and opening of the fifth day after deposit for checks and share drafts payable by financial institutions. The term share drafts drawn and payable on demand at other "financial institution" corresponds generally to the offices of financial institutions located in New Mexico. term "bank" in Regulation CC. The terms "check" (N.M. Stat. Ann. § 58-3-4A(2)). To the extent that and "share draft" are narrower than the term "check" this schedule applies to nonlocal checks as defined by in Regulation CC because they do not appear to apply Regulation CC, it supersedes the temporary schedules to Treasury checks, checks payable by state or local in Regulation CC. The New Mexico statute also progovernments (i.e., warrants), checks payable by Fed- vides for availability of checks and share drafts drawn eral Reserve Banks or Federal Home Loan Banks, or and payable on demand at financial institutions located U.S. Postal Service money orders. No portion of the in the continental United States, excluding Alaska, New Mexico statute supersedes Regulation CC with Hawaii, Puerto Rico, and the U.S. Virgin Islands, at respect to these instruments. the opening of the seventh banking day after deposit. (N.M. Stat. Ann. § 58-3-4A(3)). This schedule is the Availability Schedules same as Regulation CC with respect to nonlocal checks. Temporary Schedules. The New Mexico statute re- The New Mexico statute does not specify whether it quires checks and share drafts drawn and payable on applies to deposits of checks at nonproprietary ATMs. demand at an office of financial institution located in Under the temporary schedule in Regulation CC, the same municipality as the depositary bank and deposits at nonproprietary ATMs must be made availchecks and share drafts drawn and payable on demand able for withdrawal at the opening of the seventh at offices of financial institutions located in New Mex- business day after deposit. To the extent that the New ico whose main office is located in the same munici- Mexico schedules described above provide for shorter pality as the depositary bank to be made available at availability for deposits at nonproprietary ATMs, they the opening of the third business day after deposit. would supersede the temporary schedule in Regulation (N.M. Stat. Ann. § 58-3-4A(l)).i New Mexico is CC for deposits at nonproprietary ATMs specified in § 229.11(d). Permanent Schedules. Under the permanent sched- 1. It is not clear from the New Mexico statute whether days stated in the schedules include the day of deposit. For the purposes of this ule in Regulation CC, the proceeds of checks must be interpretation, it is assumed that the stated days do include the day of made available at the opening of the second business deposit. References to days included in the New Mexico schedules have also been revised to reflect Regulation CC terminology. day after deposit for local checks and the fifth business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 Federal Reserve Bulletin • December 1988 day after deposit for nonlocal checks. Both of these New York schedules are subject to time period adjustments for withdrawal by cash or similar means. The New Mex- Background ico statute supersedes the permanent schedules in Regulation CC for nonlocal checks subject to the The Board has been requested, in accordance with third day withdrawal requirement (N.M. Stat. Ann. § 229.20(d) of Regulation CC (12 C.F.R. Part 229), to § 58-3-4A(l)) and the time period adjustment for determine whether the Expedited Funds Availability nonlocal checks subject to the fifth day withdrawal Act (the "Act") and Subpart B (and in connection requirement (N.M. Stat. Ann. § 58-3-4A(2)) of the therewith, Subpart A) of Regulation CC, preempt the New Mexico statute. provisions of New York law concerning the availabil- Exceptions to Availability Schedules. The New ity of funds. This preemption determination addresses Mexico statute provides for exceptions to the state the relation of the Act and Regulation CC to the New schedules for: York funds availability law. (See also the Board's (1) documentary drafts; preemption determination regarding the Uniform (2) accounts opened less than 60 days; Commercial Code, § 4-213(5), pertaining to availabil- (3) checks or share drafts with two-party indorse- ity of cash deposits.) ments; In 1983, the New York State Banking Department, (4) a check or share draft in a face amount greater pursuant to section 14-d of the New York Banking than the average balance of the depositor's account Law, issued regulations requiring that funds deposited for the prior 12 months or the average balance since in an account be made available for withdrawal within the account was opened, whichever is less; and specified time periods, and provided certain excep- (5) a check or share draft deposited in an account on tions to those availability schedules. Part 34 of the which six or more nonsufficient fund checks or New York State Banking Department's General Regshare drafts were presented for payment in the prior ulations established time frames within which comsix month period. mercial banks, trust companies, and branches of foreign banks ("banks"); and savings banks, savings and The state exceptions will continue to apply when the loan associations, and credit unions ("savings institustate schedules are not preempted Regulation CC, but tions") must make funds deposited in customer acholds may be placed under the state schedules only up counts available for withdrawal. to the limits permitted by the Regulation CC sched- The Banking Department amended Part 34, effective ules. Where the Regulation CC schedules are subject September 1, 1988, generally to exclude accounts to exceptions, holds placed on checks under the state covered by Regulation CC from the scope of the state schedules that would also be permissible under Regu- regulation. Part 34.4(a)(2) and (b)(2) of the revised lation CC may be continued up to the limit on holds New York rules, however, continue to apply to checks under Regulation CC. Notice of holds as required by deposited to accounts, as defined in Regulation CC. Regulation CC (§ 229.13(g)) must be given whenever a These provisions require that the proceeds of nonlocal hold is placed so that availability is extended beyond checks payable by a New York institution be made the applicable state or federal schedule. available for withdrawal not later than the start of the fourth business day following deposit, if deposited in a Business Day/Banking Day. Under New Mexico law bank, or the fifth business day following deposit, if a bank is authorized to establish its own banking days deposited in a savings institution. The revised regulaexcept that it must observe certain holidays (N.M. tion also provides that, with respect to savings ac- Stat. Ann. §§ 58-5-6 and 58-5-7). This definition is counts and time deposits, New York institutions could preempted by the Regulation CC definitions of "buselect to comply with either the state or federal availiness day" and "banking day." Thus, for determining ability and disclosure requirements. the permissible hold under the New Mexico schedules This preemption determination supersedes the dethat supersede the Regulation CC schedule, deposits termination issued by the Board on August 18, 1988 are considered made on the specified number of "bus- (53 Federal Register 32,357 (August 24, 1988)). iness days" following the "banking day" of deposit. Disclosures Coverage The New Mexico law does not contain funds availabil- The New York law and regulation govern the availity disclosure requirements applicable to accounts ability of funds in savings accounts and time deposits, subject to Regulation CC. as well as "accounts" as defined in § 229.2(a) of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 805 Regulation CC. The New York law continues to apply and the Regulation CC schedule for nonlocal checks is to deposits to savings accounts and time deposits that not shortened under § 229.12(c)(2) and Appendix B-2. are not accounts under Regulation CC. (Note, how- Exceptions to the Availability Schedules. New York ever, that under § 229.19(e) of Regulation CC, Holds law provides exceptions to the state availability schedon other funds, the federal availability schedules may ules for large deposits, new accounts, repeated overapply to savings, time, and other accounts not defined drafters, doubtful collectibility, foreign items, and as "accounts" under Regulation CC, in certain ciremergency conditions (Part 34.4). The state excepcumstances.) tions apply only with respect to deposits of in-state The New York law and regulation apply to "items" nonlocal checks that are subject to the state availabildeposited to accounts. Part 34.3(e) defines "item" as ity schedule. For these deposits, the depositary bank "a check, negotiable order of withdrawal or money may invoke a state exception and place a hold on the order deposited into an account." The Board interdeposit up to the federal availability schedule limit for prets the definition of "item" in New York law to be that type of deposit. Once the federal availability consistent with the definition of "check" in Regulation schedule limit is reached, the depositary bank may CC (§ 229.2(k)). further extend the hold under any of the federal exceptions that apply to that deposit. Any time a Availability Schedules depositary bank invokes an exception to extend a hold beyond the time periods otherwise permitted by law, it must give notice of the extended hold to its customer The provisions of New York law governing the availin accordance with § 229.13(g) of Regulation CC. ability of in-state nonlocal items provide for a shorter hold than is provided under Regulation CC, and super- Disclosures sede the federal availability requirements. With the exception of these provisions, the New York regulation does not apply to deposits to accounts covered by The revised New York regulation does not contain Regulation CC. funds availability disclosure requirements applicable to accounts subject to Regulation CC. Temporary Schedule. The time periods for the availability of in-state nonlocal checks, contained in Part 34.4(a)(2) and (b)(2), are shorter than the seventh Rhode Island business day availability required for nonlocal checks under § 229.11(c) of Regulation CC, although they are Background not necessarily shorter than the schedules for nonlocal checks set forth in § 229.11(c)(2) and Appendix B-l of The Board has been requested, in accordance with Regulation CC. Thus, these state schedules supersede § 229.20(d) of Regulation CC (12 C.F.R. Part 229), to the federal schedule to the extent that they apply to an determine whether the Expedited Funds Availability item payable by a New York bank or savings institu- Act (the "Act") and Subpart B (and in connection tion that is defined as a nonlocal check under Regulatherewith, Subpart A) of Regulation CC, supersede tion CC and the applicable state schedule is less than provisions of Rhode Island law relating to the availthe applicable schedule specified in § 229.11(c) and ability of funds. This preemption determination spec- Appendix B-l. ifies those provisions in the Rhode Island funds avail- Permanent Schedule. The New York schedule for ability law that supersede the Act and Regulation CC. banks supersedes the Regulation CC requirement in (See also the Board's preemption determination rethe permanent schedule, effective September 1, 1990, garding the Uniform Commercial Code, § 4-213(5), that nonlocal checks be made available for withdrawal pertaining to availability of cash deposits.) by the start of the fifth business day following deposit, In 1986, Rhode Island adopted a statute governing to the extent that the in-state checks are defined as funds availability (R.I. Gen. Laws tit. 6A, §§ 4-601 nonlocal under Regulation CC, and the Regulation CC through 4-608), which requires Rhode Island deposischedule for nonlocal checks is not shortened under tory institutions to make checks deposited in a per- § 229.12(c)(2) and Appendix B-2 of Regulation CC. In sonal transaction account available for withdrawal addition, the New York schedule for savings institu- within certain specific periods. Commercial banks and tions supersedes the Regulation CC time period adjust- thrift institutions (mutual savings banks, savings ment for withdrawal by cash or similar means in the banks, savings and loan institutions and credit unions) permanent schedule, to the extent that the in-state must make funds available for withdrawal in accordchecks are defined as nonlocal under Regulation CC, ance with the following table: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 Federal Reserve Bulletin • December 1988 Rhode Island law and the federal law both require the funds to be made available no later than the third Commercial Thrift Banks Institutions business day, the state law is not preempted by the federal law. Treasury checks, Rhode Island The Rhode Island law also requires commercial Government checks, first-indorsed 2nd 2nd banks and savings institutions to make checks payable In-state, cashier's checks less than $2,500 2nd 2nd by a depository institution located in the First or On-us checks 2nd 3rd Second Federal Reserve District (outside of Rhode In-state clearinghouse checks 3rd 4th In-state nonclearinghouse checks.. 5th 6th Island) available on the seventh business day following 1st or 2nd Federal Reserve deposit. To the extent that this provision applies to District checks (out-of-state).. 7th 7th Other checks 9th 10th checks payable by institutions located outside the Boston check processing region, it provides for avail- NOTE: These time periods are stated in terms of availability for ability in the same time as required for nonlocal checks withdrawal not later than the Xth business day following the banking day of deposit to facilitate comparison with Regulation CC. State under the temporary federal schedule, and thus is not regulations are stated in terms of availability at the start of the preempted by the federal law. business day subsequent to the number of days specified in the regulation. The Rhode Island statute does not specify whether it The Rhode Island statute also provides restrictions and exceptions applies to deposits of checks at nonproprietary ATMs. to the schedules and requires institutions to make certain disclosures Under the temporary schedule in Regulation CC, to their customers. deposits at nonproprietary ATMs must be made avail- Coverage able for withdrawal at the opening of the seventh business day after deposit. To the extent that the The Rhode Island statute governs the availability of Rhode Island schedules provide for shorter availability funds deposited in "personal transaction accounts," a for deposits at nonproprietary ATMs, they would term not defined in the statute. The federal law would supersede the temporary schedule. continue to apply to "accounts," as defined in Exceptions to the Availability Schedules. The § 229.2(a), that are not "personal transaction Rhode Island law contains exceptions for reason to accounts." doubt collectibility or ability of the depositor to reim- The Rhode Island statute applies to "items," deburse the depositary bank, for new accounts, for large fined as checks, negotiable orders of withdrawal, or checks, and for foreign checks. In all cases where the money orders. The Board interprets the definition of federal availability schedule preempts the state scheditem to be consistent with the definition of "check" in ule, only the federal exceptions will apply. For depos- Regulation CC (§ 229.2(k)). its that are covered by the state availability schedule, the state exceptions may be used to extend the state Availability Schedules availability schedule to meet the federal availability schedule. Once the deposit is held up to the federal Temporary Schedule. Rhode Island law requires availavailability schedule limit under a state exception, the ability for certain checks in the same time as does depositary bank may further extend the hold under Regulation CC. Thus, in these instances, the federal any federal exception that can be applied to the law does not preempt the state law. Rhode Island law deposit. Thus, if the state and federal availability requires commercial banks (but not thrift institutions) schedules are the same for a particular deposit, both a to make checks payable by a depository institution state and a federal exception must be applicable to that that uses the same in-state clearing facility as the deposit in order to extend the hold beyond the scheddepositary bank available for withdrawal on the third ule. Any time a depositary bank invokes an exception business day following the day of the deposit. This is to extend a hold beyond the time periods otherwise the same time period contained in Regulation CC for permitted by law, it must give notice of the extended local checks payable by a bank that is a member of the hold to its customer, in accordance with § 229.13(g) of same local clearinghouse as the depositary bank. (The Regulation CC. Board views the definition of "the same in-state clearing facility" as having the same meaning as the term Business Day I Banking Day. The Rhode Island stat- "the same check clearinghouse association" in the ute defines "business day" as excluding Saturday, federal law's provision that allows banks to limit the Sunday and legal holidays. This definition is precustomer's ability to withdraw cash on the third bus- empted by the Regulation CC definitions of "business iness day if the local check being deposited is payable day" and "banking day". Thus, for determining the by a bank that is not a member of the same local permissible hold under the Rhode Island schedules clearinghouse as the depositary bank.) Since the that supersede the Regulation CC schedule, deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 807 are considered made on the specified number of "bus- 34th largest depository institution among commercial iness days" following the "banking day" of deposit. banks and thrifts in Connecticut, controlling deposits of $301.4 million, representing less than one percent of Disclosures the total deposits in such institutions in the state.3 Bank is among the smaller commercial banks in Con- The Rhode Island statute requires written notice to necticut, controlling deposits of $27 million, also repdepositors of an institution's check hold policy and resenting less than one percent of the total deposits in requires a notice on deposit slips. Regulation CC commercial banks and thrifts in the state. Upon conpreempts state disclosure requirements concerning summation of this proposal, Cenvest would become funds availability that relate to accounts that are the 33rd largest depository institution among commerinconsistent with the federal requirements. The state cial banks and thrifts in Connecticut, and would conrequirements are different from, and therefore incon- trol $328.4 million in deposits, representing 0.5 percent sistent with, the federal rules. (§ 229.20(c)(2)). Thus, of statewide commercial bank and thrift deposits. Regulation CC preempts the Rhode Island disclosure Consummation of this proposal would not increase requirements concerning funds availability. significantly the concentration of banking resources in Connecticut. Cenvest competes directly with Bank in the New ORDERS ISSUED UNDER BANK HOLDING Haven, Connecticut banking market.4 Cenvest is the COMPANY ACT fifth largest banking organization in the market, with deposits of $217.5 million, representing 6.9 percent of Orders Issued Under Section 3 of the Bank deposits in commercial banks.5 Bank is the tenth Holding Company Act largest banking organization in the market, with deposits of $25.1 million, representing 0.8 percent of Cenvest, Inc. deposits in commercial banks. Upon consummation of Meriden, Connecticut the proposal, Cenvest would remain the fifth largest banking organization in the market, with deposits of Order Approving Acquisition of a Bank $242.6 million, representing 7.7 percent of the market's total deposits in commercial banks. In light of Cenvest, Inc., Meriden, Connecticut ("Cenvest"), these factors and other facts of record, the Board has applied for the Board's approval under section concludes that consummation of this proposal would 3(a)(3) of the Bank Holding Company Act (12 U.S.C. have no significant adverse effect on existing or poten- § 1842(a)(3)) ("BHC Act"), to acquire all of the out- tial competition in any relevant banking market. standing voting shares of Meriden Trust and Safe The financial and managerial resources and future Deposit Company, Meriden, Connecticut ("Bank").1 prospects of Cenvest, Central Bank, and Bank also are Notice of the application, affording an opportunity consistent with approval of the proposal. for interested persons to submit comments, has been In considering the convenience and needs of the given in accordance with section 3(b) of the BHC Act communities to be served, the Board has taken into (53 Federal Register 26,661 (1988)). The time for filing account the records of Cenvest and Bank under the comments has expired, and the Board has considered Community Reinvestment Act ("CRA").6 The CRA the application and all comments received in light of requires the federal banking agencies, in connection the factors set forth in section 3(c) of the BHC Act. with their examination of financial institutions, to Cenvest, a savings bank holding company,2 is the assess the record of banks under their supervision in meeting the credit needs of their entire communities, including the low- and moderate-income neighbor- 1. Alternatively, in the event that another entity makes an acquisi- hoods, consistent with the safe and sound operation of tion proposal for Bank, Cenvest proposes to acquire up to 25 percent the institutions. The CRA also requires the agencies to of the shares of Bank pursuant to a stock option agreement entered into between Cenvest and Bank. 2. Cenvest became a savings bank holding company under the provisions of the Competitive Equality Banking Act of 1987, Pub. L. No. 100-86, 101 Stat. 552, 557 (1987), which provides for the 3. Deposit data are as of December 31, 1987. formation and operation of a savings bank holding company where a 4. The New Haven, Connecticut banking market is approximated qualified savings bank constitutes at least 70 percent of the assets of by the New Haven RMA. Market data are as of June 30, 1986. the parent holding company. Cenvest's current subsidiary, Central 5. Central Bank, Cenvest's savings bank subsidiary, offers a full Bank, Meriden, Connecticut, is such a qualified savings bank and array of commercial bank products in those banking markets in which constitutes approximately 99 percent of the total assets of Cenvest. it operates. Accordingly, Central Bank is treated as a commercial Upon consummation of this transaction—comprising the acquisition bank for purposes of analyzing the competitive effects of this proof a commercial bank—Cenvest will remain a qualified savings bank posal. holding company. 6. 12 U.S.C. § 2901 et seq. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 Federal Reserve Bulletin • December 1988 take these records into account when acting on certain dicate that Central Bank continues to provide mortapplications involving the institutions. gage and home improvement loans throughout The Board has received comments from The Rein- Meriden, and in 1986 Central Bank ranked third among vestment Alliance of Meriden ("RAM") regarding 18 local lenders in the extension of home improvement Cenvest's CRA performance generally and with par- loans to low- and moderate-income areas of Meriden. ticular respect to its subsidiary, Central Bank. RAM While the amount of advertising focused on credit asserts that Central Bank has failed to identify the products of particular benefit to low- and moderatecredit needs of low-income and minority members of income persons has decreased over the past few years, the community it serves and has exhibited bias on the and the difference between lending in low-income basis of race as well as income in its housing-related areas and other areas has increased in recent years, lending. RAM also maintains that Central Bank has Central Bank has made appropriate representations to participated to only a limited extent in government- address these concerns. In particular, it has indicated supported or assisted credit programs and has contrib- to the Board that it will: uted to the displacement of less affluent persons (1) continue its efforts to establish a regular pattern through the financing of conversions, reinforcing a of contact with community organizations and govgeneral pattern of disinvestment in inner city neigh- ernment entities dealing with community credit borhoods. needs; In accordance with the Board's practice and proce- (2) continue its efforts, through advertising and dure for handling protested applications,7 the Federal direct contact, to apprise members of the commu- Reserve Bank of Boston encouraged the parties to nity of its credit related banking services, especially meet to clarify the issues under the CRA. The parties those services provided in conjunction with governmet and were unable to come to a resolution of their ment programs; and differences. (3) continue to actively seek opportunities to collab- Pursuant to the requirements of the CRA, the Board orate with government entities, community groups, has carefully reviewed the overall CRA record of and/or other local financial institutions on commu- Cenvest and of Central Bank in particular, and the nity redevelopment projects. comments of RAM. Initially, the Board notes that the most recent examination of Central Bank by the Fed- Based upon the overall satisfactory CRA record of eral Deposit Insurance Corporation revealed a satis- Central Bank, Applicant's additional representations, factory CRA performance. The examination indicated and other facts of record, the Board concludes that that Central Bank is an active participant in a number convenience and needs considerations in this case are of mortgage programs, including FHA, VA, and Con- consistent with approval of the application.10 necticut Housing Finance Authority loans.8 Central Accordingly, based on the foregoing and other facts Bank has also recently become a qualified lender of record, the Board has determined that the applicaunder Connecticut's Downpayment Assistance Pro- tion should be, and hereby is, approved. The acquisigram aimed at assisting low- and moderate-income families in financing their homes. racially mixed tracts, versus 2.68 loans in the predominantly white An analysis of Home Mortgage Disclosure Act ones. ("HMDA") census tract data for the Meriden-New 10. RAM has also requested that the Board order a public meeting Haven Metropolitan Statistical Area indicates that or hearing to receive public testimony on the issues presented by this application. Although section 3(b) of the BHC Act does not require a Central Bank's lending practices in integrated areas public meeting or hearing in this instance, the Board may, in its compare favorably with its lending practices in pre- discretion, order a public meeting or hearing. See 12 C.F.R. dominantly white areas.9 Moreover, HMDA data in- § 262.3(e). In that regard, the Board's Rules of Procedure provide that a public meeting may be held to clarify factual issues related to an application or to provide an opportunity for interested persons to testify. 12 C.F.R. § 262.25(d). In addition, under the provisions of the 7. See 12 C.F.R. § 262.25(c). Board's Regulation Y, 12 C.F.R. § 225.23(g), the Board shall order a 8. This last program offers low- and moderate-income persons credit hearing only if there are disputed issues of material fact that cannot be for home purchase or improvement at interest rates below those resolved in some other manner. generally available. The Board has carefully considered RAM's requests for a public 9. In 1985, Central Bank made 15.62 mortgage loans per 1000 meeting or hearing. In accordance with the Board's guidelines, RAM owner-occupied units in integrated tracts, and 13.25 loans in predom- and Cenvest have met privately to discuss this application and have inantly white tracts, where income ranged between 80 percent and 120 exchanged extensive correspondence, all of which has been provided percent of the MSA median. For home improvement loans in the same to the Board for its review. In the Board's view, the parties have had tracts, 6.25 loans were made in the racially mixed neighborhoods, ample opportunity to present their arguments in writing and to compared with 3.10 in the predominantly white neighborhoods. The respond to one another's submissions. In light of these facts, the differences for middle income areas are even more pronounced in Board has determined that a public meeting or hearing is not necessary 1986; Central Bank made 31.25 mortgage loans per 1000 owner- to clarify the factual record in this application. Accordingly, RAM's occupied units in integrated tracts, and 9.02 loans in their mostly white request for a public meeting or hearing on this application is hereby counterparts. Central Bank made 8.33 home improvement loans in the denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 809 tion shall not be consummated before the thirtieth Banking Department has informed the Board that it calendar day following the effective date of this Order, has no objection to this proposal. In light of the or later than three months after the effective date of foregoing, the Board has determined that the proposed this Order, unless such period is extended for good acquisition is specifically authorized by the statute cause by the Board, or by the Federal Reserve Bank of laws of Texas and thus is not prohibited by the Boston, acting pursuant to delegated authority. Douglas Amendment. By order of the Board of Governors, effective Comerica is the second largest banking organization October 20, 1988. in Michigan, operating eleven subsidiary banks with total deposits of $8.1 billion, representing 13.1 percent of the total deposits in commercial banks in Michigan.3 Voting for this action: Chairman Greenspan and Governors Grand is the twenty-second largest commercial bank- Seger, Angell, Heller, Kelley, and LaWare. Absent and not voting: Governor Johnson. ing organization in Texas, controlling deposits of $438.6 million, representing less than one percent of JAMES MCAFEE total deposits in commercial banks in the state. Con- Associate Secretary of the Board summation of the proposal would not have any significant adverse effect upon the concentration of banking Comerica Incorporated resources in Michigan or Texas. Detroit, Michigan Comerica and Grand do not compete directly in any banking market. Accordingly, consummation of the Order Approving Acquisition of a Bank Holding proposal would not eliminate any significant existing Company competition in any relevant banking market. Consummation also would not have any significant adverse Comerica Incorporated, Detroit, Michigan ("Come- effect on probable future competition in any relevant rica"), a bank holding company within the meaning of banking market. the Bank Holding Company Act (12 U.S.C. § 1841 The financial and managerial resources of Comerica, et seq.) (the "Act"), has applied for the Board's Grand, and their subsidiaries are consistent with apapproval under section 3(a)(3) of the Act (12 U.S.C. proval. § 1842(a)(3)) to acquire 100 percent of the outstanding In considering the convenience and needs of the voting shares of Grand Bancshares, Inc., Dallas, community to be served, the Board has taken into Texas ("Grand"), and thereby indirectly to acquire account the record of Comerica's banks under the Grand Bank R.L. Thornton at Grand, Grand Bank, Community Reinvestment Act (12 U.S.C. § 2901 N.A., and Grand Bank Northeast, all of Dallas, Texas. et seq.) ("CRA") and various consumer compliance Notice of the application, affording interested per- statutes. The CRA requires the federal bank supervisons an opportunity to submit comments, has been sory agencies to encourage financial institutions to published (53 Federal Register 10,429 (1988)). The help meet the credit needs of the local communities in time for filing comments has expired, and the Board which they are chartered consistent with the safe and has considered the application and all comments re- sound operation of such institutions. To accomplish ceived in light of the factors set forth in section 3(c) of this end, the CRA requires the appropriate federal the Act. supervisory authority to "assess the institution's The Douglas Amendment to the BHC Act prohibits record of meeting the credit needs of its entire comthe Board from approving an application by a bank munity, including low- and moderate-income neighholding company to acquire a bank located outside the borhoods, consistent with the safe and sound operabank holding company's home state, unless such ac- tion of the institution." The Board is required to "take quisition is "specifically authorized by the statute laws such record into account in its evaluation" of applicaof the state in which such bank is located, by language tions under section 3 of the BHC Act. to that effect and not merely by implication."1 The Board's experience over the years in examining The Texas interstate banking statute permits out-of- bank performance under the CRA has indicated that state bank holding companies to acquire established institutions with the most effective programs to help Texas banks and bank holding companies.2 The Texas meet community credit needs share a number of 1. 12 U.S.C. § 1842. A bank holding company's home state for purposes of the Douglas Amendment is that state in which the total state bank holding companies. See e.g., Chemical New York Corpodeposits of its banking subsidiaries were largest on July 1, 1966, or on ration, 73 FEDERAL RESERVE BULLETIN 378 (1987); State First the date it became a bank holding company, whichever date is later. Financial Corporation, 73 FEDERAL RESERVE BULLETIN 307 (1987). 2. Tex. Rev. Civ. Stat. Ann. art. 342-916 (Vernon 1988). The Board 3. State banking data are as of June 30, 1987. All other data are as has previously approved the acquisition of Texas banks by out-of- of March 31, 1988. Comerica also operates a bank in Toledo, Ohio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 Federal Reserve Bulletin • December 1988 elements. These institutions maintain outreach pro- moderate-income and minority communities in Degrams which include procedures to permit effective troit. communication between the bank and various seg- Comerica will increase its advertising, particularly ments of the community and formalized methods for with regard to home equity, home improvement, and incorporating findings regarding community credit home mortgage loans, in newspapers of general circuneeds into the development and delivery of products lation as well as minority newspapers and other media. and services. They monitor institutional performance Comerica also has expanded its realtor call program to at senior management levels and periodically evaluate include realtors operating in the city of Detroit. With new opportunities for innovative lending programs, regard to its lending operations, Comerica has comsuch as home mortgage and neighborhood residential mitted to participate more actively in government rehabilitation lending and similar programs, to meet sponsored housing-related lending programs. specific community credit needs, including those of Subsequent to submitting the CRA plan to the low- and moderate-income persons. An effective pro- Board, Comerica submitted a CRA plan to the Comgram also includes the use of specifically designed missioner in accordance with his July 29, 1988 Order. marketing and advertising plans to stimulate public- That plan contains certain additional elements not awareness of the bank's services throughout the com- present in the plan submitted to the Board.4 On munity, including low- and moderate-income neigh- September 19, 1988, the Commissioner issued a letter borhoods, as well as support of community stating that this latter plan was satisfactory and condevelopment projects and programs. sistent with approval of Comerica's application. In this case, in accordance with the requirements of Comerica's CRA plan, as submitted to the Board, the CRA, the Board has given careful attention to the contains the elements that, in the Board's experience, most recent CRA examination of Comerica's lead reflect a strong CRA commitment. When properly bank, Comerica Bank - Detroit, Detroit, Michigan implemented, the Board believes the plan would cor- ("Bank"), which was completed by the Federal Re- rect the deficiencies in Bank's CRA performance, and serve Bank of Chicago in December 1987. That exam- Bank's actions since adoption of the plan have shown ination noted certain important deficiencies in Bank's satisfactory progress toward correction of deficien- CRA performance. On July 29, 1988, the Commis- cies. While certain aspects of the plan have not been sioner of the Michigan Financial Institutions Bureau fully implemented, the Board has stated that an appli- ("Commissioner"), in acting on this application under cant's commitments to correct deficiencies in its CRA provisions of Michigan law, also noted certain areas performance are an important aspect of the Board's for improvement in Bank's CRA performance. The role in encouraging performance under CRA.5 Accord- Commissioner conditioned his approval of the appli- ingly, on the basis of the record, including Comerica's cation on, among other things, the adoption by Com- commitments to the Board regarding its CRA plan, erica of a satisfactory written plan for enhancing and the steps it has taken to implement that plan, the Bank's investment in the city of Detroit. Board believes that considerations relating to the convenience and needs of the communities to be In response to the concerns noted in the examinaserved are consistent with approval.6 tion, Comerica and Bank, in April 1988, generated and submitted to the Federal Reserve an extensive plan to improve Bank's CRA performance, particularly with respect to credit ascertainment and outreach to its 4. Under the plan submitted to the Commissioner, Bank has made certain specific financial commitments to a number of state and local community. This CRA plan is designed to ensure that authorities and community programs with regard to mortgage, home Bank's services reach all areas of the city of Detroit improvement, small business and consumer loans, as well as with regard to small and large community development projects. Bank also and respond to the needs identified by its citizens. As committed to adopt more liberal underwriting criteria with regard to part of Comerica's proposal to the Board, Comerica certain home improvement and mortgage loans, and has committed to intends to increase its efforts to ascertain the credit increase the number of minority and bilingual lending officers in its branches. Comerica also will explore the establishment of a communeeds of the city of Detroit by providing additional nity development corporation. training to its managers regarding Bank's CRA policies 5. See Advance Bancorp, Inc., 72 FEDERAL RESERVE BULLETIN 834 and programs and by requiring its CRA officers and (1986); Board statement of January 3, 1980. 2 Federal Reserve Regulatory Service 116-1312. branch managers to meet frequently with representa- 6. The Board received a protest concerning Bank's CRA perfortives of local community organizations to discuss the mance from the Detroit Committee for Responsible Banking ("Procredit needs of the community. In addition, Comerica testant"). Protestant alleged that Comerica exercises a corporate policy that prohibits investment in community development and representatives have begun working with Detroit comredevelopment projects in the city of Detroit. Protestant later withmunity organizations through seminars and credit sur- drew the protest based on Bank's "commitment to devote its reveys to develop mortgage lending programs that ad- sources and talents to achieving the goals specified in [its revised CRA] plan." Letter dated September 13, 1988, from Protestant to the dress the credit needs of residents of low- and Federal Reserve Bank of Chicago. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 811 The Board will carefully scrutinize all future appli- ("City Bank").1 Dime Bank and City Bank are FDICcations to determine Comerica's progress in fulfulling insured savings banks.2 its CRA obligations and improving its service to the Notice of the application, affording interested perconvenience and needs of its community. In connec- sons an opportunity to submit comments, has been tion with its approval of this case, the Board has duly published (53 Federal Register 29,523 (1988)). directed the Federal Reserve Bank of Chicago to The time for filing comments has expired, and the monitor the progress of Bank in strengthening its CRA Board has considered the application and all comperformance and implementing its CRA plan as sub- ments received in light of the factors set forth in mitted to the Board, and as a condition of its approval, section 3(c) of the Act. Comerica and Bank shall continue to submit quarterly Dime, a non-operating corporation with no subsidreports to the Reserve Bank concerning the plan and iaries, was organized for the purpose of becoming a Bank's CRA program. bank holding company by acquiring Dime Bank and Based on the foregoing and other facts of record, the City Bank. Dime Bank is the 35th largest depository Board has determined that approval of the application institution in Connecticut, with deposits of $296.5 would be consistent with the public interest and that million, representing less than 1.0 percent of the total the application should be, and hereby is, approved. deposits in depository institutions in Connecticut.3 The transaction shall not be consummated before the City Bank is one of the smaller depository institutions thirtieth calendar day following the effective date of in Connecticut, with deposits of $111.4 million, reprethis Order, or later than three months after the effec- senting less than 1.0 percent of the total deposits in tive date of this Order, unless such period is extended those organizations. Upon consummation of this profor good cause by the Board or by the Federal Reserve posal, Dime would become the 28th largest depository Bank of Chicago, acting pursuant to delegated author- institution in Connecticut, controlling deposits of ity. $407.9 million, representing less than 1.0 percent of By order of the Board of Governors, effective the total deposits in depository institutions in Connect- October 19, 1988. icut. Consummation of this proposal would not have a significant adverse effect on the concentration of banking resources in Connecticut. Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Heller, Kelley, and LaWare. Dime Bank and City Bank compete directly in the New Haven banking market.4 Dime Bank is the eighth JAMES MCAFEE largest banking institution in the market, controlling Associate Secretary of the Board 3.9 percent of the total deposits.5 City Bank is the 17th largest banking institution in the market, controlling 1.3 percent of the total deposits in banking organizations in the market. Upon consummation of this pro- Dime Financial Corporation posal, Dime would become the eighth largest banking Wallingford, Connecticut institution in the market, controlling 5.2 percent of the Order Approving Acquisition of Banks Dime Financial Corporation, Wallingford, Connecti- 1. Alternatively, in the event that another entity makes an acquisicut ("Dime"), has applied for the Board's approval tion proposal for City Bank, Dime proposes to acquire 24.9 percent of the voting shares of City Bank pursuant to a stock option agreement pursuant to section 3(a)(1) of the Bank Holding Com- entered into between Dime Bank and City Bank. Dime Bank will pany Act ("Act"), 12 U.S.C. § 1841 et seq., to be- transfer the stock option to Dime. As part of this transaction, Dime will indirectly acquire 7.1 percent come a bank holding company by acquiring 100 perof Meriden Trust and Safe Deposit Company, Meriden, Connecticut, cent of the voting shares of The Dime Savings Bank of which is currently owned by City Bank. Cenvest, Inc., Meriden, Wallingford, Wallingford, Connecticut ("Dime Connecticut, received Board approval on October 20, 1988, to exchange its stock for 100 percent of the voting shares of Meriden Trust Bank"), and 100 percent of the voting shares of City and Safe Deposit Company, Meriden, Connecticut ("Meriden"), and Savings Bank of Meriden, Meriden, Connecticut upon consummation of that acquisition, Dime and City Bank will reduce their ownership to less than 5 percent of the shares of Cenvest, Inc. 2. As FDIC-insured institutions, Dime Bank and City Bank would qualify as banks under section 2(c) of the Act, as amended by 101(a) of the Competitive Equality Banking Act of 1987, Pub. L. No. 100-86, The Board also received an untimely comment from an individual 101 Stat. 552, 554 (1987) (to be codified at 12 U.S.C. § 1841(c)). alleging that Comerica is not meeting its CRA commitments because 3. State banking data are as of December 31, 1987. Bank refused to extend a loan to him. The Board has reviewed this 4. The New Haven banking market is approximated by the New individual's comments and Comerica's response and concludes that Haven, Connecticut, Ranally Metro Area. the individual's allegations do not warrant denial of the application. 5. Market data are as of June 30, 1986. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 Federal Reserve Bulletin • December 1988 deposits in banking organizations in the market. The moderate-income areas and predominantly minority four-firm concentration ratio would remain 51.0 per- neighborhoods that RAM believes are not adequately cent and the Herfindahl-Hirschman Index ("HHI") served by City Bank and Dime Bank.9 would increase by 10 points to 863.6 Based upon these The Board notes that Dime Bank and City Bank and other facts of record, the Board concludes that have achieved satisfactory overall CRA ratings based consummation of this proposal would not have a upon their most recent compliance examinations. The substantial adverse effect on competition in the New Board also notes that Dime Bank's delineated commu- Haven banking market.7 nity does not include Meriden and that neither RAM The financial and managerial resources of Dime, nor the FDIC has criticized Dime Bank's delineation Dime Bank and City Bank are considered satisfactory of its community. and consistent with approval. An analysis of Home Mortgage Disclosure Act In considering the convenience and needs of the ("HMDA") data for the Meriden-New Haven Metrocommunities to be served, the Board has considered politan Statistical Area ("MSA") indicates that, durthe records of Dime Bank and City Bank under the ing the period from 1984 to 1986, City Bank made at Community Reinvestment Act ("CRA"), as well as least 24.0 percent of its conventional home mortgage the comments of the Reinvestment Alliance of Meri- loans in the Meriden census tracts identified by den ("RAM"). The CRA requires the Board to assess RAM.10 In addition, during 1984 through 1986, City the record of banks in meeting the credit needs of their Bank made between 17.0 percent and 27.0 percent of entire communities, including low- and moderate-in- its home improvement loans in the Meriden census come neighborhoods, consistent with their safe and tracts identified by RAM.n Dime Bank has also made sound operation, and to take those records into ac- conventional home mortgage loans in RAM's targeted count in the Board's evaluation of bank holding com- Meriden census tracts, even though these census pany applications.8 tracts are outside the delineated community for Dime RAM alleges that Dime Bank and City Bank have Bank. The Board also notes that two of the three not adequately met the credit needs of low-income and branch offices of City Bank are in low- and moderateminority persons in Meriden and have exhibited bias income census tracts identified by RAM. on the basis of race as well as income in their housing- Although City Bank does not currently participate in related lending. RAM also asserts that City Bank has government-supported lending programs, Dime Bank failed to make loans for multi-family dwellings and that is a certified FHA, VA, Small Business Administration both Dime Bank and City Bank have participated only Lender and Connecticut Housing Finance Authority to a limited extent in government-supported or as- lender.12 Dime has stated that upon consummation of sisted credit programs, contributing to the displace- this proposal it will cause Dime Bank to assist City ment of low-income and minority persons through the Bank in participating in the Connecticut Housing financing of conversions, and reinforcing a general Finance Authority program and will study the need for pattern of disinvestment in inner city neighborhoods. extending FHA and VA mortgage lending programs in In particular, RAM has identified specific low- and Meriden. Dime has agreed to coordinate the efforts of Dime Bank and City Bank, with assistance from the Urban Preservation of Meriden, Inc., to make Connecticut Housing Finance Authority loans available to 6. Under the revised Department of Justice Merger Guidelines, 49 low- and moderate-income persons in Meriden, as well Federal Register 26,823 (June 29, 1984), a market in which the as other appropriate lending facilities. Dime will also post-merger HHI is above 1800 is considered highly concentrated. In make SBA loans available in Meriden. Dime has also such markets, the Justice Department is likely to challenge a merger that increases the HHI by more than 50 points. The Justice Department has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by at least 200 points. The 9. RAM contends that this lending is not sufficient in these areas Justice Department has stated that the higher than normal HHI based upon a comparison of the number of housing units in these thresholds for screening bank mergers for anticompetitive effects census tracts. The Board notes, however, that the figures used by implicitly recognizes the competitive effect of limited-purpose lenders RAM to compute housing units include a significant number of rental and other non-depository financial entities. units, and RAM appears to have included one census tract that is 7. Dime Bank and City Bank engage in Savings Bank Life Insurance neither a low- and moderate-income neighborhood nor a predomi- ("SBLI") activities pursuant to state law. These activities are ex- nantly minority neighborhood. pressly authorized for qualified savings banks under the Act as 10. These ratios are 24.0 percent in 1984, 25.0 percent in 1985 and amended by the Competitive Equality Banking Act of 1987. Dime 24.0 percent in 1986. meets all the requirements set out by the Act for bank holding 11. These ratios are 19.0 percent in 1984, 27.0 percent in 1985 and companies that desire to engage in SBLI activities through qualified 17.0 percent in 1986. savings bank subsidiaries. 101 Stat, at 562 (to be codified at 12 U.S.C. 12. The Connecticut Housing Finance Authority program offers § 1842(f)(3)). low- and moderate-income persons credit for home purchase or 8. 12 U.S.C. § 2901 et seq. improvement at interest rates below those generally available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 813 indicated that Dime Bank will implement a program at U.S. Bancorp City Bank for offering loans for multi-family dwellings Portland, Oregon and for non-owner occupied 1-4 family dwellings in Meriden. Order Approving the Acquisition of a Bank In addition, Dime Bank currently advertises the availability of its services in the Meriden daily news- U.S. Bancorp, Portland, Oregon, a bank holding compaper and engages in direct mail solicitation. Upon pany within the meaning of the Bank Holding Comconsummation of this acquisition, Dime intends to pany Act ("Act") (12 U.S.C. § 1841 et seq.), has continue these advertising programs and include Me- applied for the Board's approval under section 3(a)(3) riden residents in Dime Bank's direct mail solicitation. of the Act, 12 U.S.C. § 1842(a)(3), to acquire 100 Dime also intends to establish a similar direct mail percent of the voting shares of Northwestern Commersolicitation program for City Bank. Dime Bank also cial Bank, Bellingham, Washington ("Northwestern will continue its efforts to ascertain the credit needs of Bank"). the community through contact with community orga- Notice of the application, affording interested pernizations and periodic consumer surveys and will sons an opportunity to submit comments, has been assist City Bank in these efforts. Moreover, Dime duly published (53 Federal Register 26,312 (1988)). Bank and City Bank have expressed a willingness to The time for filing comments has expired, and the participate in housing seminars conducted by certain Board has considered the application and all comlocal community organizations. ments received in light of the factors set forth in Based on the overall satisfactory CRA records of section 3(c) of the Act. Dime Bank and City Bank, the facts and representa- The Douglas Amendment to the Act prohibits the tions described in this Order and all the other facts of Board from approving an application by a bank holdrecord, the Board concludes that convenience and ing company to acquire a bank located outside of the needs considerations are consistent with approval of bank holding company's home state, unless such acthis application.13 quisition is specifically authorized by the statute laws Based on the foregoing and other facts of record, the of the state in which the bank is located, by language Board has determined that the application should be, to that effect and not merely by implication. 12 U.S.C. and hereby is, approved. This transaction shall not be § 1842(d). U.S. Bancorp's home state is Oregon. The consummated before the thirtieth calendar day follow- Board has previously determined that Washington has ing the effective date of this Order, or later than three by statute specifically authorized an Oregon bank months after the effective date of this Order, unless holding company to acquire a Washington bank or such period is extended for good cause by the Board or bank holding company.1 Accordingly, approval of by the Federal Reserve Bank of Boston, acting pursu- U.S. Bancorp's proposal to acquire Northwestern ant to delegated authority. Bank is not barred by the Douglas Amendment. By order of the Board of Governors, effective U.S. Bancorp is the largest commercial banking October 26, 1988. organization in Oregon, controlling three banks in Oregon with total deposits of approximately $5.8 billion, representing 39.8 percent of the total deposits in Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Heller, Kelley, and La Ware. commercial banking organizations ("total bank deposits") in the state.2 U.S. Bancorp also operates three JAMES MCAFEE banks in Washington, where it is the fourth largest Associate Secretary of the Board commercial banking organization in the state, controlling deposits of approximately $2.0 billion, representing 7.8 percent of the total bank deposits in the state. 13. The Board has also considered RAM's request for a public Northwestern Bank is the 19th largest commercial meeting under section 262.25(d) of the Board's regulations and a banking organization in Washington, controlling depublic hearing under the Act. Although section 3(b) of the Act does not require a public meeting or hearing in this instance, the Board posits of $90.3 million, representing less than 1.0 may, in its discretion, order a public meeting or hearing. See percent of the total bank deposits in the state. Upon 12 C.F.R. § 262.3(e). In that regard, the Board's Rules of Procedure consummation of this proposal, U.S. Bancorp would provide that a public meeting may be held to clarify factual issues related to an application or to provide an opportunity for interested remain the fourth largest commercial banking organipersons to testify. 12 C.F.R. § 262.25(d). In this case, both RAM and zation in Washington, controlling deposits of $2.1 Dime have been given the opportunity to submit written facts and arguments to the Board regarding the records of Dime Bank and City Bank in meeting the convenience and needs of their communities and have submitted extensive comments on these matters. In light of this, 1. U.S. Bancorp, 73 FEDERAL RESERVE BULLETIN 941 (1987). the Board has determined to deny RAM's request for a public meeting 2. State banking data are as of December 31, 1987. U.S. Bancorp and a formal hearing at this time. also controls one bank in Utah. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

814 Federal Reserve Bulletin • December 1988 billion, representing 8.1 percent of the total bank tion ratio would increase by 13.9 percentage points to deposits in the state. Accordingly, consummation of 89.3 percent and the HHI would increase by 514 points this proposal would not have any significant adverse to 2278. effect on the concentration of banking resources in Although consummation of this proposal would Washington. eliminate some existing competition between U.S. U.S. Bancorp's subsidiary banks compete directly Bancorp and Northwestern Bank in the Whatcom with Northwestern Bank in the Whatcom County and County and Bellingham metropolitan banking mar- Bellingham metropolitan banking markets. kets, numerous other commercial banks would con- In the Whatcom County banking market,3 U.S. tinue to operate in each market after consummation of Bancorp is the third largest of nine commercial bank- this proposal. In addition, the Board has considered ing organizations, controlling deposits of $95.8 million, the presence of thrift institutions in these banking representing 14.9 percent of the total bank deposits in markets in its analysis of this proposal.8 These instithe market.4 Northwestern Bank is the fourth largest tutions account for a significant percentage of the total commercial banking organization in the market, con- deposits in each market.9 Based upon the size and trolling deposits of $78.4 million, representing 12.2 market share of thrift institutions in the markets, the percent of the total bank deposits in the market. Upon Board has concluded that thrift institutions exert a consummation of this proposal, U.S. Bancorp would significant competitive influence that mitigates the become the largest commercial banking organization anticompetitive effects of this proposal in the Whatin the market, controlling deposits of $174.2 million, com County and Bellingham metropolitan banking representing 27.1 percent of the total bank deposits in markets.10 the market. The four-firm concentration ratio would On the basis of the foregoing and other facts of increase by 11.0 percentage points to 81.5 percent and record, the Board concludes that consummation of the Herfindahl-Hirschman Index ("HHI") would in- this proposal would not have a substantial adverse crease by 363 points to 1943.5 effect on existing competition in the Whatcom County In the Bellingham metropolitan banking market,6 and Bellingham metropolitan banking markets. U.S. Bancorp is the third largest of eight commercial The financial and managerial resources of U.S. banking organizations, controlling deposits of $69.9 Bancorp and Northwestern Bank are considered satmillion, representing 15.6 percent of the total bank isfactory and consistent with approval. deposits in the market.7 Northwestern Bank is the In considering the convenience and needs of the second largest commercial banking organization in the communities to be served, the Board has taken into market, controlling deposits of $73.5 million, repre- account U.S. Bancorp's record under the Community senting 16.4 percent of the total bank deposits in the Reinvestment Act ("CRA"), 12 U.S.C. § 2901 et seq. market. Upon consummation of this proposal, U.S. The CRA requires the Board, in its evaluation of a Bancorp would become the largest commercial bank- bank holding company application, to assess the ing organization in the market, controlling deposits of record of an applicant in meeting the credit needs of $143.4 million, representing 32.1 percent of the total bank deposits in the market. The four-firm concentra- 8. The Board has previously indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. National City Corporation, 70 FEDERAL RESERVE 3. The Whatcom County banking market is approximated by BULLETIN 743 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE Whatcom County, Washington, exclusive of the Bellingham, Wash- BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL ington, Ranally Metropolitan Area. RESERVE BULLETIN 802 (1983); and First Tennessee National Corpo- 4. Market banking data are as of June 30, 1986. ration, 69 FEDERAL RESERVE BULLETIN 298 (1983). 5. Under the revised Department of Justice Merger Guidelines, 49 9. Thrift institutions control 33.8 percent of the combined deposits Federal Register 26,823 (June 29, 1984), a market in which the of banks and thrifts in the Whatcom banking market and 39.8 percent post-merger HHI is above 1800 is considered highly concentrated. In of the combined deposits of banks and thrifts in the Bellingham such markets, the Justice Department is likely to challenge a merger metropolitan banking market. that increases the HHI by more than 50 points. The Justice Depart- 10. If 50 percent of deposits held by thrift institutions in the ment has informed the Board that a bank merger or acquisition Whatcom County banking market were included in the calculation of generally will not be challenged (in the absence of other factors market concentration, the share of total deposits held by the four indicating anticompetitive effects) unless the post-merger HHI is at largest organizations in the market would be 66.8 percent. U.S. least 1800 and the merger increases the HHI by at least 200 points. The Bancorp would control 11.9 percent of the market's deposits and Justice Department has stated that the higher than normal HHI Northwestern Bank would control 9.7 percent of the market's deposthresholds for screening bank mergers for anticompetitive effects its. The HHI would increase by 231 points to 1386. implicitly recognizes the competitive effect of limited-purpose lenders If 50 percent of deposits held by thrift institutions in the Bellingham and other non-depository financial entities. metropolitan banking market were included in the calculation of 6. The Bellingham metropolitan banking market is approximated by market concentration, the share of total deposits held by the four the Bellingham, Washington, Ranally Metropolitan Area (RMA). largest organizations in the market would be 68.5 percent. U.S. 7. Market banking data are adjusted to reflect U.S. Bancorp's Bancorp would control 11.8 percent of the market's deposits and June 30, 1988, acquisition of Mt. Baker Bank, Bellingham, Washing- Northwestern Bank would control 12.4 percent of the market's ton. deposits. The HHI would increase by 290 points to 1494. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 815 the entire community, including low- and moderate- Although U.S. Bank did not originate directly any income neighborhoods, consistent with safe and sound mortgage loans in the low- and moderate-income cenoperation. The Board has received comments from sus tracts identified by Protestant, its mortgage bank- Lane County Fair Share/Friends of Lincoln School, ing subsidiary has originated loans in those census Eugene, Oregon ("Protestant"), regarding U.S. Ban- tracts. The Board also notes that before 1986, U.S. corp's CRA record. Protestant alleges that U.S. Ban- Bank's lending record does not establish a pattern of corp's subsidiary, U.S. National Bank of Oregon, excluding low- and moderate-income census tracts. Eugene, Oregon ("U.S. Bank"), has failed to ade- With regard to Protestant's allegations relating to quately assess and serve the credit needs of low- and U.S. Bank's compliance with CRA procedures, the moderate-income persons in Eugene's central and Office of the Comptroller of the Currency determined west-side neighborhoods.11 during its most recent compliance examination that U.S. Bancorp has met privately with Protestant to U.S. Bank's delineation of the entire state of Oregon discuss the issues raised by the comments. U.S. as its designated community was appropriate because Bancorp has stated that it will arrange future meetings U.S. Bank's widely dispersed branches enable it to between staff of U.S. Bank's Eugene branch and provide services throughout Oregon. In addition, U.S. Protestant's representative, regarding development of Bank's CRA statement is reviewed annually by its a project proposed by Protestant to renovate Lincoln Board of Directors and contains the required informa- School and transform it into a community services tion. center. U.S. Bank staff will assist Protestant in the Accordingly, based on the overall satisfactory CRA further development of its proposal to renovate Lin- records of U.S. Bancorp's subsidiary banks and coln School. Northwestern Bank, and all the facts of record, the In accordance with the Board's practice and Board concludes that convenience and needs considprocedures,12 the Board has reviewed Protestant's erations are consistent with approval of this applicaallegations, U.S. Bancorp's response to the allegations tion. and the records of U.S. Bancorp's subsidiary banks Based on the foregoing and other facts of record, the and Northwestern Bank in meeting the convenience Board has determined that the application should be, and needs of its community. and hereby is, approved. The acquisition of North- An analysis of U.S. Bank's CRA record reveals that western Bank shall not be consummated before the U.S. Bank and Northwestern Bank have achieved thirtieth calendar day following the effective date of satisfactory overall CRA ratings based upon the most this Order, or later than three months after the effecrecent compliance examinations conducted by their tive date of this Order, unless such period is extended primary supervisory agencies. U.S. Bank offers sev- for good cause by the Board or by the Federal Reserve eral programs designed to meet the credit needs of Bank of San Francisco, acting pursuant to delegated low- and moderate-income persons, including the fol- authority. lowing: By order of the Board of Governors, effective 1. "Opportunity loans" designed to enable individ- October 11, 1988. uals with job skills, who would otherwise not be considered creditworthy, to start businesses; Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, Kelley, and La Ware. Absent and not 2. Below-market rate weatherization loans, offered voting: Chairman Greenspan and Governor Heller. in cooperation with the state of Oregon, to enable homeowners to reduce energy costs; and JAMES MCAFEE 3. Line of credit to the Portland Development Com- Associate Secretary of the Board mission for rehabilitation of deteriorating housing in the Portland area and to build low-income housing. Orders Issued Under Section 4 of the Bank Holding Company Act In addition, during 1987, U.S. Bank acted as underwriter for municipal securities issued by Eugene- CoreStates Financial Corp Springfield and invested in bond issues by local Philadelphia, Pennsylvania school, fire, and park and recreation districts. Order Approving Application to Engage in Underwriting and Dealing in Certain Securities to a 11. Protestant alleges that: Limited Extent (1) there are large geographic gaps in U.S. Bank's lending; (2) U.S. Bank's community delineation, which includes the entire state of Oregon, is unreasonable; and CoreStates Financial Corp, Philadelphia, Pennsylva- (3) U.S. Bank's CRA statement is outdated. 12. 12 C.F.R. § 262.25(c). nia, a bank holding company within the meaning of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

816 Federal Reserve Bulletin • December 1988 Bank Holding Company Act (12 U.S.C. § 1841 et seq.) conduct of the proposed ineligible securities under- ("BHC Act"), has applied for the Board's approval writing and dealing activity is consistent with section under section 4(c)(8) of the BHC Act (12 U.S.C. 20 of the Glass-Steagall Act provided the underwriting § 1843(c)(8)) and section 225.23 of the Board's Regu- subsidiary derives no more than 5 percent of its total lation Y (12 C.F.R. § 225.23) to engage de novo gross revenue from underwriting and dealing in the through CoreStates Securities Corp., Philadelphia, approved securities over any two-year period.2 The Pennsylvania ("Company"), on a limited basis in Board further found that, subject to the prudential underwriting and dealing in: framework of limitations established in those cases to (1) municipal revenue bonds, including certain in- address the potential for conflicts of interests, unsound dustrial development bonds; banking practices or other adverse effects, the pro- (2) 1-4 family mortgage-related securities; posed underwriting and dealing activities were so (3) commercial paper; and closely related to banking as to be a proper incident (4) consumer-receivable-related securities ("CRRs") thereto within the meaning of section 4(c)(8) of the (collectively "ineligible securities"). BHC Act. Applicant has committed to conduct its Applicant has also applied to act as agent and ineligible underwriting and dealing activities subject to adviser to issuers of commercial paper and other the 5 percent-revenue test and the prudential limitashort-term promissory notes in connection with the tions established by the Board in its Citicorp!Morgan! placement of such notes with institutional customers. Bankers Trust and Chemical Orders. In addition, Applicant proposes to underwrite and Consummation of the proposal would provide added deal in securities that state member banks are permit- convenience to Applicant's customers. In addition, ted to underwrite and deal in under the Glass-Steagall the Board expects that the de novo entry of Applicant Act (hereinafter "bank-eligible securities") as permit- into the market for these services would increase the ted by section 225.25(b)(16) of Regulation Y level of competition among providers of these ser- (12 C.F.R. § 225.25(b)(16)). Company currently en- vices. Accordingly, the Board has determined that the gages in securities brokerage activities pursuant to performance of the proposed activities by Applicant section 225.25(b)(15) of Regulation Y (12 C.F.R. can reasonably be expected to produce public benefits § 225.25(b)(15)). which would outweigh adverse effects under the Applicant, with consolidated assets of $15.4 billion, proper incident to banking standard of section 4(c)(8) is the 38th largest banking organization in the nation. It of the BHC Act.3 operates four subsidiary banks and engages directly Based on the above, the Board has determined to and through subsidiaries in a broad range of permissi- approve the underwriting application subject to all of ble nonbanking activities.1 the terms and conditions established in section Notice of the application, affording interested per- 225.25(b)(16) of Regulation Y and the CiticorplMorsons an opportunity to submit comments on the pro- gan/Bankers Trust, Chemical and Bankers Trust posal, has been published (53 Federal Register 33,848 Orders,4 except the market share limitation.5 As in (1988)). The time for filing comments has expired, and the Board has considered the application and all 2. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust comments received in light of the public interest New York Corporation, 73 FEDERAL RESERVE BULLETIN 473 (1987) factors set forth in section 4(c)(8) of the BHC Act. ("Citicorp/Morgan!Bankers Trust"), off d sub nom., Securities Indus- The Board has previously determined that under- try Association v. Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir. 1988), cert, denied, 108 S. Ct. 2830 (1988) ("S/A writing and dealing in bank-eligible securities and v. Board"); and Chemical New York Corporation, The Chase Mancommercial paper placement are closely related to hattan Corporation, Bankers Trust New York Corporation, Citicorp, Manufacturers Hanover Corporation and Security Pacific Corporabanking under section 4(c)(8) of the BHC Act. tion, 73 FEDERAL RESERVE BULLETIN 731 (1987) ("Chemical"). 12 C.F.R. § 225.25(b)(16); Bankers Trust New York 3. Company may also provide services that are necessary incidents Corporation, 73 FEDERAL RESERVE BULLETIN 138 to these approved activities. The incidental services should be taken into account in computing the gross revenue limit on the underwriting (1987) ("Bankers Trust"); and The Bank of Montreal, subsidiary's ineligible underwriting and dealing activities, to the 74 FEDERAL RESERVE BULLETIN 500 (1988). Applicant extent such limits apply to particular incidental activities. has proposed to place commercial paper in accordance 4. The industrial development bonds approved in those applications and for Applicant in this case are only those tax exempt bonds in with the terms and conditions of the Board's prior which the governmental issuer, or the governmental unit on behalf of decisions. which the bonds are issued, is the owner for federal income tax The Board has also previously determined that the purposes of the financed facility (such as airports, mass commuting facilities, and water pollution control facilities). Without further approval from the Board, Company may underwrite or deal in only these types of industrial development bonds. 5. In light of the decision in SIA v. Board, the Board has determined 1. Ranking is as of March 31, 1988. All other data are as of June 30, not to limit Company's ineligible activities based upon a market share 1988. limitation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 817 Bank of Montreal, Applicant's commercial paper organization in Ohio.2 It presently operates three placement activity is not subject to quantitative limi- banking subsidiaries and engages in permissible credittations. related insurance activities through its subsidiary, The Board's determination is subject to all of the FBOH Credit Life Insurance Company. conditions set forth in the Board's Regulation Y, Peoples Bank, with total assets of $385.4 million, is including those in sections 225.4(d) and 225.23(b), and the 25th largest savings institution in Ohio. Peoples to the Board's authority to require modification or Bank currently operates 11 branches in Ohio and termination of the activities of a bank holding com- controls an inactive service corporation subsidiary.3 pany or any of its subsidiaries as the Board finds By letter dated October 20, 1988, the Federal Home necessary to assure compliance with, and to prevent Loan Bank Board ("Bank Board") requested that the evasion of, the provisions of the BHC Act and the Board approve this application to acquire Peoples Board's regulations and orders issued thereunder. Bank under the Bank Board's Expedited Case Pro- This transaction shall not be consummated later cessing Program for failing thrift institutions. The than three months after the effective date of this Bank Board has indicated that Peoples Bank has Order, unless such period is extended for good cause incurred significant operating losses over a prolonged by the Board, or by the Federal Reserve Bank of period, and has reported a negative net worth for over Philadelphia, pursuant to delegated authority. 2Vi years. The Bank Board urged the Board to approve By order of the Board of Governors, effective this application in order to restore public confidence in October 11, 1988. Peoples Bank, maintain confidence in the savings and loan industry generally, and stabilize the daily increasing potential cost to the FSLIC. The Bank Board Voting for this action: Vice Chairman Johnson and Goverbased its request on both the deteriorating and volatile nors Seger, Angell, Kelley, and La Ware. Absent and not voting: Chairman Greenspan and Governor Heller. condition of Peoples Bank, as well as on the substantial public benefits of the proposal, including the JAMES MCAFEE significant and stabilizing capital injections proposed Associate Secretary of the Board by First Bancorporation and the FSLIC. Notice of the application, affording interested persons an opportunity to submit comments on the pro- First Bancorporation of Ohio posal, has been duly published (53 Federal Register Akron, Ohio 32,665 (1988)).4 The time for filing comments has expired, and the Board has considered the application Order Approving Acquisition of a Federal Savings and all comments received in light of the public Bank interest factors set forth in section 4(c)(8) of the BHC Act. First Bancorporation of Ohio, Akron, Ohio ("First The Board has determined previously that the oper- Bancorporation"), a bank holding company within the ation of a federal savings bank (and thrift institutions meaning of the Bank Holding Company Act generally) is closely related to banking.5 The Board- (12 U.S.C. § 1841 et seq.) (the "BHC Act"), has applied pursuant to section 4(c)(8) of the BHC Act and section 225.23 of the Board's Regulation Y (12 C.F.R. § 225.23), to acquire all of the voting shares of the successor by merger to Peoples Federal Savings Bank, 2. Asset data are as of December 31, 1987. 3. First Bancorporation has committed that its service corporation Wooster, Ohio ("Peoples Bank"), an insolvent thrift will not engage in any activities without the prior approval of the institution.1 Upon consummation of the proposed ac- Board. 4. The Board is authorized by statute and regulation to waive or quisition, Peoples Bank will operate as a federal savshorten the usual notice and comment period, as well as the hearing ings bank in Ohio. requirements normally accorded section 4 applications, in the case of First Bancorporation, with total consolidated assets failing thrift acquisitions. Under these provisions, the Board is required to determine, with the concurrence of the primary Federal of $2.6 billion, is the 10th largest commercial banking regulator of the thrift being acquired, that an emergency exists which requires the Board to act immediately on an application to acquire a failing thrift institution. 12 U.S.C. § 1843(c)(8); 12 C.F.R. § 225.23(i). The Bank Board has concurred that an emergency exists and has 1. Peoples Bank is currently operated as a mutual thrift institution, requested that the Board act immediately on the application. Accordand will be converted to a federal stock savings bank by the Federal ingly, the Board provided for a shortened public comment period in Savings and Loan Insurance Corporation (the "FSLIC") in an invol- light of the deteriorating condition of Peoples Bank. untary supervisory conversion. Peoples Bank will then be merged into 5. See e.g., Citicorp, 72 FEDERAL RESERVE BULLETIN 724 (1986); a de novo federal stock savings bank, which will retain the name First Pacific Investments Limited, 72 FEDERAL RESERVE BULLETIN Peoples Federal Savings Bank. Peoples Bank also will retain its 342 (1986); F.N.B. Corporation, 71 FEDERAL RESERVE BULLETIN 340 FSLIC deposit insurance. (1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

818 Federal Reserve Bulletin • December 1988 also has determined that, as a general matter, opera- engage in deposit taking8 and lending activities within tion of a thrift institution was not a proper incident to the Akron, Ohio banking market.9 In view of Peoples banking because the potential adverse effects of gen- Bank's small market share, the moderately concenerally allowing affiliations of banks and thrifts, at the trated nature of the market and the de minimis intime of its initial consideration of this issue, were then crease in concentration resulting from this proposal, sufficiently strong to outweigh any public benefits that the deteriorating condition of Peoples Bank, and the might result from individual cases. D.H. Baldwin & fact that 25 other bank and thrift institutions would Co., 63 FEDERAL RESERVE BULLETIN 280 (1977).6 The remain in the market, the Board concludes that the Board, however, has consistently regarded the BHC acquisition would have no substantial adverse effect Act as authorizing it to permit such an acquisition, and on existing competition in the market. In addition, the has approved several such proposals involving failing Board concludes that consummation of this proposal thrift institutions on the basis that any adverse effects would not have a significant adverse effect on probable would be outweighed by the public benefits of preserv- future competition in any relevant market. ing the failing thrift institutions.7 To guard against possible adverse effects of affili- Based upon the Board's review of the record, the ation between a banking organization and a savings Board has determined that substantial benefits to the bank, the Board conditions its approval as follows: public in this case outweigh the generalized adverse 1. First Bancorporation will operate Peoples Bank effects found by the Board in the D.H. Baldwin case. as a federal savings bank having as its primary The Board believes First Bancorporation's acquisition purpose the provision of residential housing credit. of Peoples Bank will result in substantial and compel- Peoples Bank will limit its activities to those curling public benefits in that First Bancorporation will rently permitted to thrift institutions under the provide Peoples Bank with significant financial and Home Owners' Loan Act, but shall not engage in managerial resources sufficient to enhance its future any activity prohibited to bank holding companies prospects, enabling Peoples Bank to continue its op- and their subsidiaries under section 4(c)(8) of the erations and remain a viable competitor. BHC Act.10 As the Board previously has noted, bank holding 2. Peoples Bank will not establish or operate a companies contemplating expansion proposals are ex- remote service unit at any location outside of Ohio. pected to maintain consolidated capital levels signifi- 3. Peoples Bank will not establish or operate cantly above the minimums set forth in the Board's branches at locations not permissible for national Capital Adequacy Guidelines and without undue reli- banks located in Ohio. ance on intangibles, particularly goodwill. In that 4. First Bancorporation shall not change Peoples regard, First Bancorporation is a strongly capitalized Bank's name to any title that might confuse the institution, and will remain so on a consolidated basis public regarding its status as a nonbank thrift instiupon consummation of the proposal. Moreover, in tution. accordance with its prior rulings in this area, the Board 5. Peoples Bank will not convert its charter to that expects that First Bancorporation will cause Peoples of a national or state commercial bank without the Bank to achieve and maintain levels of capital consis- Board's prior approval. tent with those applying to banking organizations The Board concludes that consummation of the generally as soon as possible, and in any case within proposal, subject to the conditions set out above, one year. would not result in conflicts of interests, unsound The proposed acquisition would not substantially lessen or otherwise decrease competition in any relevant market. On the contrary, the acquisition would 8. Within the Akron, Ohio banking market (see below), First Bancorporation is the largest depository institution among banks and have the substantial beneficial effect of preserving thrift institutions in the market, with total deposits of $1.2 billion, Peoples Bank as an effective competitor. In that re- representing approximately 21.1 percent of market deposits in such institutions. Peoples Bank is the 11th largest depository institution gard, both First Bancorporation and Peoples Bank among banks and thrifts in the market, with total deposits of $70.6 million, representing approximately 1.2 percent of the total deposits in banks and thrifts in the market. Upon consummation of the proposal, First Bancorporation would control 22.3 percent of the total deposits of banks and thrifts in the market. The market would remain moderately concentrated. Market data are as of June 30, 1987. 9. The Akron, Ohio banking market is approximated by the south- 6. The Board has invited public comment on a proposal to reexam- ern two-thirds of Summit and Portage counties, Milton and Chippewa ine the position espoused in its D.H. Baldwin Order. 52 Federal townships in Wayne County, Lawrence and the western half of Lake Register 36,041 (1987). Township in Stark County, and the southernmost tier of townships 7. See e.g., F.N.B. Corporation, supra; The Chase Manhattan (including Sharon Township) in Medina County. Corporation, 71 FEDERAL RESERVE BULLETIN 462 (1985); Interstate 10. These limitations also apply to Peoples Bank's currently inac- Financial Corp., 68 FEDERAL RESERVE BULLETIN 316 (1982). tive service corporation subsidiary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 819 banking practices, decreased or unfair competition, underwriting and dealing in, on a limited basis, municundue concentration of resources, or other adverse ipal revenue bonds, including certain industrial develeffects. opment bonds, and commercial paper. Based upon the foregoing and other facts and cir- Company currently engages in underwriting and cumstances reflected in the record, the Board has dealing in securities that state member banks are determined that the acquisition of Peoples Bank by permitted to underwrite and deal in under the Glass- First Bancorporation would result in substantial and Steagall Act (hereinafter "bank-eligible securities"), compelling public benefits that are sufficient to outas permitted by section 225.25(b)(16) of Regulation Y weigh any adverse effects that may reasonably be (12 C.F.R. § 225.25(b)(16)). Company also engages in expected to result from this proposal. Accordingly, the securities brokerage activities pursuant to section application is approved subject to the conditions de- 225.25(b)(15) (12 C.F.R. § 225.25(b)(15)). scribed in this Order, and the record of the application. Applicant, with consolidated assets of $25.1 billion, The Board's decision in this case is subject to the is the 24th largest banking organization in the nation. It conditions set forth in Regulation Y, including sections operates nine subsidiary banks and engages directly 225.4(d) and 225.23(b), and to the Board's authority to and through subsidiaries in a broad range of permissirequire such modification or termination of the activble nonbanking activities.1 ities of a holding company or any of its subsidiaries as Notice of the application, affording interested perthe Board finds necessary to assure compliance with, sons an opportunity to submit comments on the proor to prevent evasion of, the provisions and purposes posal, has been published (53 Federal Register 31,763 of the BHC Act and the Board's regulations and orders (1988)). The time for filing comments has expired, and issued thereunder. This transaction shall not be conthe Board has considered the application and all summated later than three months after the effective comments received in light of the public interest date of this Order, unless that period is extended for factors set forth in section 4(c)(8) of the BHC Act. good cause by the Board or by the Federal Reserve The Board has previously determined that the con- Bank of Cleveland, pursuant to delegated authority. duct of the proposed ineligible securities underwriting By order of the Board of Governors, effective and dealing activity is consistent with section 20 of the October 21, 1988. Glass-Steagall Act provided the underwriting subsidiary derives no more than 5 percent of its total gross Voting for this action: Chairman Greenspan and Governors revenue from underwriting and dealing in the ap- Johnson, Angell, Heller, and La Ware. Absent and not voting: proved securities over any two-year period.2 The Governors Seger and Kelley. Board further found that, subject to the prudential framework of limitations established in those cases to JAMES MCAFEE Associate Secretary of the Board address the potential for conflicts of interests, unsound banking practices or other adverse effects, the proposed underwriting and dealing activities were so Fleet/Norstar Financial Group, Inc. closely related to banking as to be a proper incident Providence, Rhode Island thereto within the meaning of section 4(c)(8) of the BHC Act. Applicant has committed to conduct its Fleet/Nor star New York, Inc. ineligible underwriting and dealing activities subject to Albany, New York the 5 percent revenue test and the prudential limitations established by the Board in its Citicorp!Morgan! Order Approving Application to Underwrite and Bankers Trust Order. Deal in Certain Securities to a Limited Extent Consummation of the proposal would provide added convenience to Applicant's customers. In addition, Fleet/Norstar Financial Group, Inc., Providence, the Board expects that the de novo entry of Applicant Rhode Island, and its wholly owned subsidiary, Fleet/ into the market for these services would increase the Norstar New York, Inc., Albany, New York (together level of competition among providers of these ser- "Applicant"), both bank holding companies within the vices. Accordingly, the Board has determined that the meaning of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) ("BHC Act"), have applied 1. Ranking is as of March 31, 1988. All other data are as of June 30, for the Board's approval under section 4(c)(8) of the 1988. BHC Act and section 225.21(a) of the Board's Regu- 2. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust lation Y, 12 C.F.R. § 225.21(a), to engage through New York Corporation, 73 FEDERAL RESERVE BULLETIN 473 (1987) ("Citicorp/Morgan/Bankers Trust"), affd sub nom., Securities Industheir wholly owned subsidiary, Adams, McEntee & try Association v. Board of Governors of the Federal Reserve System, Co., Inc., New York, New York ("Company"), in 839 F.2d 47 (2d Cir. 1988), cert, denied, 108 S. Ct. 2830 (1988) CSIA v. Board"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

820 Federal Reserve Bulletin • December 1988 performance of the proposed activities by Applicant Bank Holding Company Act (12 U.S.C. § 1841 etseq.) can reasonably be expected to produce public benefits ("BHC Act"), has applied for the Board's approval which would outweigh adverse effects under the under section 4(c)(8) of the BHC Act (12 U.S.C. proper incident to banking standard of section 4(c)(8) § 1843(c)(8)) and section 225.21(a) of the Board's of the BHC Act.3 Regulation Y (12 C.F.R. 225.21(a)) to engage de novo Based on the above, the Board has determined to through its wholly owned subsidiary, SP Investment approve the underwriting application subject to all of Strategies Corp., San Diego, California ("Company"), the terms and conditions established in the Citicorp! in providing investment advice concerning futures and Morgan/Bankers Trust Order,4 except the market options on futures contracts on foreign exchange, share limitation.5 government securities, bullion and money market in- The Board's determination is subject to all of the struments to a limited number of institutional customconditions set forth in the Board's Regulation Y, ers. In addition to this activity, Company would proincluding those in sections 225.4(d) and 225.23(b), and vide portfolio investment advice, for which Applicant to the Board's authority to require modification or has previously received authorization pursuant to sectermination of the activities of a bank holding com- tion 225.25(b)(4)(iii) of Regulation Y (12 C.F.R. pany or any of its subsidiaries as the Board finds § 225.25(b)(4)(iii)). necessary to assure compliance with, and to prevent Notice of the application, affording an opportunity evasion of, the provisions of the BHC Act and the for interested persons to submit comments and views, Board's regulations and orders issued thereunder. has been duly published (53 Federal Register 28,269 This transaction shall not be consummated later (1988)). The time for filing comments has expired, and than three months after the effective date of this the Board has considered the application and all Order, unless such period is extended for good cause comments received in light of the factors set forth in by the Board, or by the Federal Reserve Bank of section 4(c)(8) of the BHC Act. Boston pursuant to delegated authority. Applicant, with consolidated assets of approxi- By order of the Board of Governors, effective mately $75.6 billion, is the seventh largest commercial October 3, 1988. banking organization in the nation.1 It operates five subsidiary banks in California, Arizona, and Oregon and engages directly and through other subsidiaries in Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Heller, Kelley, and La Ware. a broad range of nonbanking activities. Section 4(c)(8) establishes a two-step test for deter- JAMES MCAFEE mining the permissibility of nonbanking activities for Associate Secretary of the Board bank holding companies: (1) whether the activity is closely related to banking; Security Pacific Corporation and Los Angeles, California (2) whether the activity is a "proper incident" to banking—that is, whether the proposed activity can Order Conditionally Approving Application to reasonably be expected to produce benefits to the Provide Advice on Certain Futures and Options on public that outweigh possible adverse effects. Futures The Board has previously determined that providing Security Pacific Corporation, Los Angeles, California, such investment advice as a futures commission mera bank holding company within the meaning of the chant ("FCM") or as a commodity trading advisor ("CTA") registered with the Commodity Futures Trading Commission ("CFTC") is closely related to 3. Company may also provide services that are necessary incidents to these approved activities. The incidental services should be taken banking, and, subject to conditions to address possible into account in computing the gross revenue limit on the underwriting risk or conflicts, is a proper incident to banking. subsidiary's ineligible underwriting and dealing activities, to the extent such limits apply to particular incidental activities. 12 C.F.R. § 225.25(b)(19). Company would limit the 4. The industrial development bonds approved in those applications scope of its advisory activity to that previously deterand for Applicant in this case are only those tax exempt bonds in mined by the Board to be closely related to banking which the governmental issuer, or the governmental unit on behalf of which the bonds are issued, is the owner for federal income tax under this section of Regulation Y. purposes of the financed facility (such as airports, mass commuting facilities, and water pollution control facilities). Without further approval from the Board, Company may underwrite or deal in only these types of industrial development bonds. 5. In light of the decision in SI A v. Board, the Board has determined not to limit Company's ineligible activities based upon a market share 1. Asset data are as of June 30, 1988. AH other data are as of limitation. June 30, 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 821 The issue presented by this proposal is whether the holdings in the underlying commodities or instruconduct of this activity by Company would be a proper ments. incident to banking if Company does not meet the Consummation of the proposal would provide some requirement under Regulation Y that the adviser reg- convenience to Applicant's customers. In addition, ister with the CFTC as a CTA or an FCM. In this case, the Board expects that the de novo entry of Applicant Company expects to qualify for a statutory exemption into the market for these services would increase the from such registration under section 4m of the Com- level of competition among providers of these sermodity Exchange Act, which provides that any person vices. Accordingly, the Board has determined that the who, during the preceding 12 months, has not fur- performance of the proposed activities by Applicant nished commodity advisory services to more than 15 can reasonably be expected to produce public benefits persons and who does not hold himself out generally to which would outweigh adverse effects under the the public as a CTA, is exempt from the registration proper incident to banking standard of section 4(c)(8) requirements for CTA's under that Act.2 Company of the BHC Act. would only serve customers who have a pre-existing Based on the foregoing and other facts of record, relationship with it or its affiliates. including the requirement for disclosure as discussed In permitting bank holding companies to provide above, the Board has determined that the application commodity trading advice, the Board established the should be, and hereby is, approved. Except as proregistration condition with the objective of minimizing vided herein with respect to the registration of Compotential hazards or conflicts. Registration addresses pany with the CFTC, this determination is further these concerns by subjecting the CTA's to the super- subject to all of the conditions set forth in the Board's vision and regulation of the CFTC and the require- Regulation Y, including those in sections 225.4(d) and ments adopted by the CFTC to govern the conduct of 225.23(b), and to the Board's authority to require that activity. Applicant's proposal would permit Com- modification or termination of the activities of the pany to provide commodity trading advice without holding company or any of its subsidiaries as the such safeguards. While Applicant has agreed to com- Board finds necessary to assure compliance with the ply with many of the CFTC's conditions associated provisions and purposes of the BHC Act and the with registration, it has not agreed to the disclosure Board's regulations and orders issued thereunder, or requirements. Consistent with the Board's regulations to prevent evasion thereof. and past decisions, the Board expects, however, that This transaction shall not be consummated later Company will disclose to its customers substantially than three months after the effective date of this the same information required for registered CTA's, Order, unless such period is extended for good cause including the CTA's performance record, conflicts of by the Board, or by the Federal Reserve Bank of San interests, possible trading risks, and civil and criminal Francisco, pursuant to delegated authority. actions against the CTA. By order of the Board of Governors, effective The Board believes that possible adverse effects in October 18, 1988. this case would be further minimized by the following considerations. Company will remain subject to the Voting for this action: Chairman Greenspan and Governors anti-fraud provisions of the Commodity Exchange Act Johnson, Seger, Angell, Heller, Kelley, and La Ware. as well as other restrictions contained in the Act.3 Further, as noted, Applicant has agreed to comply JAMES MCAFEE with all the other conditions on this activity that are Associate Secretary of the Board aimed at minimizing possible adverse effects. Thus, the adviser will not trade for its own account (except Orders Issued Under Sections 3 and 4 of the to hedge), will limit its advice to instruments that Bank Holding Company Act banks deal in extensively (foreign exchange, bullion, government securities and money market instru- Boatmen's Bancshares, Inc. ments), and will only serve customers that are finan- St. Louis, Missouri cially sophisticated and have significant dealings or Order Approving the Merger of Bank Holding Companies 2. 7 U.S.C. 6m. 3. Company would also be subject to reparation claims brought pursuant to the reparations program provided for under the Commod- Boatmen's Bancshares, Inc., St. Louis, Missouri ity Exchange Act, the CFTC large trader reporting requirements, and ("Boatmen's"), has applied for the Board's approval the position limits promulgated by the CFTC and licensed United States commodity exchanges. under section 3(a)(5) of the Bank Holding Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

822 Federal Reserve Bulletin • December 1988 Act (12 U.S.C. § 1842(a)(5)) ("BHC Act"), to merge deposits in depository institutions in Missouri.4 The with Centerre Bancorporation, St. Louis, Missouri Missouri Commissioner of Finance has determined ("Centerre"), and thereby to acquire eleven of its that the proposed transaction does not violate Mistwelve subsidiary banks.1 Boatmen's has also applied souri law with regard to this limitation on total deposunder section 4(c)(8) of the BHC Act (12 U.S.C. its. § 1843(c)(8)) to acquire the nonbanking subsidiaries of Boatmen's and Centerre compete directly in seven Centerre listed in Appendix A to this Order. Missouri banking markets: St. Louis, Cape Girardeau, Notice of the applications, affording an opportunity Kansas City, Springfield, Joplin, Aurora/Monett, and for interested persons to submit comments, has been Taney County. given in accordance with section 3(b) of the BHC Act The St. Louis5 banking market is unconcentrated. (53 Federal Register 29,950 (1988)). The time for filing Boatmen's is the largest of 57 commercial banking comments has expired, and the Board has considered organizations, controlling 17.3 percent of the total the applications and all comments received in light of deposits in commercial banks in the market ("market the factors set forth in sections 3(c) and 4(c)(8) of the deposits"), and Centerre is the third largest commer- BHC Act.2 cial banking organization in the market, controlling Boatmen's controls 34 banking institutions in Mis- 12.7 percent of market deposits. Upon consummation, souri, Illinois, and Tennessee, and is the largest com- Boatmen's would control 30 percent of the market mercial banking organization in Missouri, where it deposits in the St. Louis market. The Herfindahlcontrols deposits of $6.2 billion, representing 13.9 Hirschman Index ("HHI") would increase by 439 percent of the total deposits in commercial banks in points to 1410.6 the state.3 Centerre operates twelve banking institu- The Cape Girardeau,7 Springfield,8 and Aurora/ tions in Missouri and is the fourth largest commercial Monett9 markets are each moderately or highly conbanking organization in the state. Centerre controls centrated in terms of commercial bank deposits only. deposits of $3.9 billion, representing 8.8 percent of the Upon consummation, all three banking markets would total deposits in commercial banks in Missouri. Upon be highly concentrated. Boatmen's would control 37.7 consummation of the proposed acquisition, Boatmen's percent of commercial bank deposits in the Cape would remain the largest commercial banking organi- Girardeau market, 33.6 percent in the Springfield zation in Missouri, and its share of total deposits in market, and 27.8 percent in the Aurora/Monett marcommercial banks would increase to $10.1 billion, ket. In each of these three markets, the HHI would representing approximately 22.6 percent of the depos- increase by over 300 points to over 1800. its in the state. Consummation of this proposal would The Board has considered the presence of thrift have no significant adverse effect upon the concentra- institutions in these banking markets in its analysis of tion of commercial banking resources in Missouri. Under Missouri law, a bank holding company may not obtain control of any bank if the total deposits of 4. 1988 Mo. Laws § 362.915. 5. The St. Louis banking market is approximated by the St. Louis the target bank together with the total deposits in all Ranally Metro Area, adjusted to include all of St. Charles and banks in Missouri controlled by the holding company Jefferson Counties, Missouri; Pin Oak and Hamel Townships in (exclusive of certificates of deposit in the face amount Madison County, Illinois; and Smith ton, Engelmann, and all of Lebanon and Mascoutah Townships in St. Clair County, Illinois. of $100,000 or more, deposits from foreign sources and 6. Under the revised Department of Justice Merger Guidelines, deposits of other banks) exceed 13 percent of the total 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is above 1800 is considered highly concentrated. In such markets, the Department is likely to challenge a merger that increases the HHI by more than 50 points. The Department has informed the Board that a bank merger or acquisition generally will 1. Centerre Bank, N.A., St. Louis, Missouri; Centerre Bank of not be challenged (in the absence of other factors indicating anticom- Cape Girardeau, Cape Girardeau, Missouri; Centerre Bank of Colum- petitive effects) unless the post-merger HHI is at least 1800 and the bia, Columbia, Missouri; Centerre Bank of Crane, Crane, Missouri; merger increases the HHI by at least 200 points. The Justice Depart- Centerre Bank of Kansas City, N.A., Kansas City, Missouri; Centerre ment has stated that the higher than normal HHI thresholds for Bank of Kennett, Kennett, Missouri; Centerre Bank of Neosho, N.A., screening bank mergers for anticompetitive effects implicitly recog- Neosho, Missouri; Centerre Bank of Rolla, Rolla, Missouri; Centerre nizes the competitive effect of limited-purpose lenders and other Bank of Springfield, Springfield, Missouri; Centerre Bank of West non-depository financial entities. Plains, N.A., West Plains, Missouri; and Centerre Bank of Vandalia, 7. The Cape Girardeau banking market is approximated by Cape Vandalia, Missouri. Girardeau County and Kelso Township in Scott County. 2. The Board received one comment in opposition to this proposal 8. The Springfield banking market is approximated by Greene based on a customer's problems with a loan from Centerre Bank of County; Porter, Finley, Lincoln and Polk Townships in Christian Neosho, N.A., Neosho, Missouri. In light of the facts of record of this County, and West Benton Township in Webster County. case, the Board has determined that this comment does not warrant 9. The Aurora/Monett banking market is approximated by Lawdenial of the applications. rence County; Capps Creek, Monett, Kings Prairie, Pleasant Ridge, 3. State deposit data are as of December 31, 1987, and reflect Ozark, Crane Creek and Pioneer Townships in Barry County; and holding company acquisitions approved through July 31, 1988, and Grant, Pierce, Lincoln, Union, Hurley and Washington Townships in bank mergers consummated through June 30, 1988. Stone County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 823 this proposal. The Board previously has indicated that On the basis of the above and other facts of record, thrift institutions have become, or have the potential the Board finds that consummation of Boatmen's to become, major competitors of commercial banks.10 proposal would not have a significant adverse effect on Thrift institutions already exert a considerable com- existing competition in any relevant market. In addipetitive influence in the market as providers of NOW tion, the Board concludes that consummation of this accounts and consumer loans, and many are engaged proposal would not have a significant adverse effect on in the business of making commercial loans and ac- probable future competition in any relevant market. cepting demand deposits. Based upon the number, The financial and managerial resources of Boatsize, market shares and commercial lending activities men's and Centerre are consistent with approval. The of thrift institutions in the relevant markets, the Board Board notes that the proposal will involve an exchange has concluded that thrift institutions exert a significant of shares and Boatmen's will not acquire any significompetitive influence that mitigates the anticompeti- cant debt as a result of this transaction. Convenience tive effects of this proposal in these markets.11 and needs factors, including Community Reinvest- The Kansas City12 and Joplin13 banking markets are ment Act factors,16 are also consistent with approval. unconcentrated or moderately concentrated. Upon Boatmen's has also applied, pursuant to section consummation of the proposal, Boatmen's would con- 4(c)(8) of the BHC Act, to acquire the nonbanking trol 16 percent of the market deposits in the Kansas subsidiaries of Centerre as well as Centerre's owner- City market and 13.8 percent in the Joplin market. In ship interest in an automated teller machine ("ATM") both markets, the resulting HHI would not exceed network exchange joint venture, and thereby to en- 1200. gage in nonbanking activities that the Board has pre- In the Taney County banking market,14 Boatmen's viously determined to be permissible for a bank holdis the largest of three commercial banking organiza- ing company. In this regard, the Board has considered tions, controlling $73.5 million in deposits, which the effect of consummation on competition in the represents 37.9 percent of the market deposits. Cen- provision of nonbanking services in markets where terre is the second largest commercial banking organi- Boatmen's and Centerre now compete. zation in the Taney County market, controlling $66.2 Under this proposal, Boatmen's would acquire Cenmillion in deposits, which represents 34.2 percent of terre Trust Company of St. Louis, St. Louis, Missouri, market deposits. In order to mitigate the adverse and the trust departments at Centerre's subsidiary competitive effects of the proposal in Taney County, banks, which together constitute the largest trust Centerre will sell Centerre Bank of Branson, Branson, operation in Missouri, controlling discretionary trust Missouri, prior to the consummation of the proposed assets of $10.8 billion.17 Boatmen's, with discretionary merger, to a third party that does not currently operate trust assets of $10.3 billion, ranks as the second largest in the market.15 trust operation in Missouri. Upon consummation, Boatmen's would manage $21.1 billion in trust assets, ranking as the largest provider of trust services in 10. National City Corporation, 70 FEDERAL RESERVE BULLETIN Missouri.18 743 (1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE BULLETIN 529 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE In considering the competitive effects of combina- BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL tions of trust companies with banking organizations, RESERVE BULLETIN 802 (1983); First Tennessee Corporation, 69 the Board has determined that an appropriate product FEDERAL RESERVE BULLETIN 298 (1983). 11. The following data indicate the market share and the change in is the provision of personal trust services.19 The marthe HHI if 50 percent of the deposits controlled by thrift institutions ket for this service is approximated by the state of were included in the calculation of market concentration for the following markets: In the St. Louis market, Boatmen's would control Missouri. As of December 31,1986, Boatmen's admin- 23.5 percent of the total market deposits, and the HHI would increase istered 23.8 percent of all discretionary personal trusts by 270 points to 908. In the Cape Girardeau market, Boatmen's would administered by trust companies and trust departcontrol 29.4 percent of the total market deposits, and the HHI would increase by 424 points to 1793. In the Springfield market, Boatmen's ments of depository institutions in Missouri, while would control 26.3 percent of the total market deposits, and the HHI would increase by 205 points from 999 to 1204. In the Aurora/Monett market, Boatmen's would control 23.8 percent of the total market deposits, and the HHI would increase by 237 points to 1414. consummation. Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE 12. The Kansas City banking market is approximated by the Kansas BULLETIN 190 (1982); InterFirst Corporation, 68 FEDERAL RESERVE City Ranally Metro Area. BULLETIN 243 (1982). 13. The Joplin banking market is approximated by Jasper and 16. 12 U.S.C. § 2901 et seq. Newton Counties, Missouri, plus the portion of Cherokee County, 17. Data are as of December 31, 1987. Kansas, that includes the communities of Galena and Baxter Springs. 18. Nationally, Boatmen's ranks as the 35th largest trust organiza- 14. The Taney County banking market is approximated by all of that tion, and Centerre ranks as the 33rd largest trust organization. Upon county. consummation, Boatmen's would become the 14th largest provider of 15. The Board's policy with regard to divestitures intended to trust services in the nation. remedy the anticompetitive effects resulting from a merger or acqui- 19. See Bancorp Hawaii, Inc., 71 FEDERAL RESERVE BULLETIN 168 sition proposal requires that divestitures must occur on or before (1985). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 Federal Reserve Bulletin • December 1988 Centerre administered 21.8 percent, resulting in a those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. combined total of 45.6 percent of all such personal §§ 225.4(d) and 225.23(b)(3)), and to the Board's autrusts. thority to require such modification or termination of There are, however, numerous other providers of the activities of a holding company or any of its personal trust services in addition to trust companies subsidiaries as the Board finds necessary to assure and trust departments of depository institutions. By compliance with the provisions and purposes of the one estimate, if these other providers were included in BHC Act and the Board's regulations and orders the market, Boatmen's would administer approxi- issued thereunder, or to prevent evasion thereof. mately 31 percent of personal trusts in the state of By order of the Board of Governors, effective Missouri upon consummation of the proposal.20 Based October 31, 1988. upon the numerous providers of personal trusts in the state, as well as the numerous potential entrants into Voting for this action: Chairman Greenspan and Governors the market, the Board concludes that consummation Johnson, Angell, Heller, Kelley, and LaWare. Absent and of the proposal would not have a substantially adverse not voting: Governor Seger. effect on competition in the personal trust market. Boatmen's and Centerre compete in other trust JAMES MCAFEE Associate Secretary of the Board services provided in markets that are regional or national in scope. The Board concludes that the proposed merger would not result in any significant adverse effect on competition in the provision of these APPENDIX A trust service products. Regarding Centerre's other nonbanking subsidiaries Nonbanking Subsidiaries and Joint Venture and Centerre's ownership in the ATM network ex- Interests to be Acquired change joint venture, consummation of the proposal would have a de minimis effect on existing competi- Centerre Trust Company of St. Louis, St. Louis, tion, and there are numerous competitors for these Missouri, and thereby engage in trust company funcservices. Accordingly, the Board concludes that the tions; Monetary Transfer System, St. Louis, Missouri, proposal would not have any significant adverse effect and thereby engage in providing data processing seron existing or probable future competition in any vices; Centerre Life Insurance Company, St. Louis, relevant geographic or product market. Missouri, and Centerre Insurance Agency, Inc., St. Furthermore, there is no evidence in the record to Louis, Missouri, and thereby act as a reinsurer of indicate that approval would result in undue concen- credit life and credit accident and health insurance tration of resources, unfair competition, conflicts of sold in connection with extensions of credit by the interests, unsound banking practices, or other adverse affiliate banks; Benefit Plan Services, Inc., St. Louis, effects on the public interest. Accordingly, the Board Missouri, and thereby engage in the design and adminhas determined that the balance of public interest istration of small to moderately sized employee benefit factors it must consider under section 4(c)(8) of the and pension plans, such as defined benefit plans, BHC Act is favorable and consistent with approval of defined contribution plans, 401-K plans and profit the applications to acquire the nonbanking subsidiaries sharing plans; and Centerre Bank of Delaware, New of Centerre. Castle, Delaware, and thereby engage in credit card lending. The Board has determined that these activi- Based on the foregoing and other facts of record, the ties are closely related to banking and permissible for Board has determined that the applications should be, bank holding companies. 12 C.F.R. §§ 225.23(b)(1), and hereby are, approved. The merger shall not be consummated before the thirtieth calendar day follow- (3), (7), (8); Centerre Bancorporation, 74 FEDERAL ing the effective date of this Order, or later than three RESERVE BULLETIN 136 (1988) and 73 FEDERAL REmonths after the effective date of this Order, unless SERVE BULLETIN 365 (1987). such period is extended for good cause by the Board or by the Federal Reserve Bank of St. Louis, acting First Bank System, Inc. pursuant to delegated authority. The determinations as Minneapolis, Minnesota to Boatmen's nonbanking activities are subject to all of the conditions contained in Regulation Y, including Order Approving Acquisition of a Bank Holding Company 20. Although an exact HHI for this market cannot be calculated, the First Bank System, Inc., Minneapolis, Minnesota, a estimated HHI for personal trust services in Missouri would be approximately 1330 upon consummation of this proposal. bank holding company within the meaning of the Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 825 Holding Company Act (12 U.S.C. § 1841 et seq.) authorized by the statute laws of the state in which ("BHC Act"), has applied for the Board's approval {the} bank is located, by language to that effect and not under section 3(a)(3) of the BHC Act (12 U.S.C. merely by implication." (12 U.S.C. § 1842(d)). First § 1842(a)(3)) to acquire at least 88.5 percent of the Bank System's home state is Minnesota. voting shares of Central Bancorporation, Inc., Den- Effective April 29, 1988, Colorado state law4 permitver, Colorado ("Central Bancorporation"), and ted an out-of-state bank holding company to acquire a thereby to acquire indirectly Central Bancorporation's Colorado bank if successful in a special bidding prosubsidiary banks listed in Appendix A. First Bank cess established to provide relief to depositors in System also has applied for the Board's approval Colorado industrial banks not covered by federal under section 4(c)(8) of the BHC Act (12 U.S.C. deposit insurance.5 The new law provided that all bids § 1843(c)(8)), to acquire Central Bancorporation Life were contingent upon regulatory approval by the Col- Insurance Company, Denver, Colorado, a nonbanking orado State Bank Commissioner and required that any subsidiary of Central Bancorporation, and thereby out-of-state bank holding company seeking to acquire engage in underwriting credit life insurance pursuant a Colorado bank or bank holding company submit the to section 225.25(b)(8)(i) of the Board's Regulation Y name or names under which it proposes to conduct its (12 C.F.R. § 225.25(b)(8)(i)). business in Colorado.6 First Bank System was the sole Notice of the applications, affording interested per- successful bidder. On September 19, 1988, the Colosons an opportunity to submit comments, has been rado State Bank Commissioner approved First Bank published (53 Federal Register 30,098 (1988)). The System's proposed acquisition of Central Bancorporatime for filing comments has expired, and the Board tion. Based on the foregoing, the Board has deterhas considered the applications and all comments mined that the proposed acquisition is specifically received in light of the factors set forth in sections 3(c) authorized by the statute laws of Colorado, and thus and 4(c)(8) of the BHC Act.' Board approval is not prohibited by the Douglas Amendment. First Bank System is the largest commercial banking organization in Minnesota, controlling deposits of The financial and managerial resources and future $11.3 billion, representing approximately 29 percent of prospects of First Bank System and Central Bancortotal deposits in commercial banking organizations in poration are consistent with approval. In considering the state.2 Central Bancorporation is the fifth largest the convenience and needs of the communities to be commercial banking organization in Colorado, con- served, the Board has taken into account the records trolling deposits of $1.7 billion, representing approxi- of First Bank System and Central Bancorporation mately 8.4 percent of total deposits in commercial under the Community Reinvestment Act (12 U.S.C. banking organizations in the state. § 2901 et seq.) ("CRA"). The CRA requires the Central Bancorporation's banking affiliates operate Board, in its evaluation of a bank holding company solely in Colorado banking markets. First Bank Sys- application, to assess the record of an applicant in tem has banking affiliates in numerous banking mar- meeting the credit needs of the entire community, kets, all outside of Colorado. Based upon the facts of including low- and moderate-income neighborhoods, record, consummation of this proposal would not consistent with the safe and sound operation of the result in any adverse effect upon existing or future bank holding company. competition or increase the concentration of banking resources in Colorado. Accordingly, the Board concludes that competitive factors are consistent with principally conducted on July 1, 1966, or the date on which the approval. company became a bank holding company, whichever is later. Section 3(d) of the BHC Act, the Douglas Amend- 4. Colo. Rev. Stat. § 11-22-615 (1988). 5. First Bank System's bid provided for a cash payment in exchange ment, prohibits the Board from approving an applica- for the right to acquire Central Bancorporation and other existing tion by a bank holding company to acquire control of Colorado bank holding companies. any bank located outside of the holding company's 6. The Colorado interstate banking statute specifically provides that an out-of-state bank holding company shall not be eligible to make the home state,3 unless such acquisition is "specifically proposed acquisition if the proposed name is identical to or deceptively similar to the name of any existing Colorado bank or bank holding company, or likely to cause the public to be confused, deceived, or mistaken. COLO. REV. STAT. § 11-6.4-103(10). In this 1. The Board received protests from Community Resource Center, regard, the Board received a protest from First Bank Holding Com- Inc., First Bank Holding Company of Colorado, Historic Denver, pany of Colorado, Denver, Colorado, regarding First Bank System's Inc., the Denver Chapter of the American Institute of Architects, and use of its name in the state of Colorado. To address this matter, First the Colorado Historical Society, all of Denver, Colorado; and the Bank System has committed not to change the name of Central National Trust for Historic Preservation, Washington, D.C. Bancorporation or its banking subsidiaries. In addition, First Bank 2. Banking data are as of December 31, 1987. System represented to the Colorado State Banking Commissioner that 3. A bank holding company's home state is that state in which the it did not intend to use the phrase "Member First Bank System" to display its affiliation with Central Bancorporation. operations of the bank holding company's banking subsidiaries were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

826 Federal Reserve Bulletin • December 1988 The Board received comments from Community for each subsidiary bank of Central Bancorporation in Resource Center, Inc., Denver, Colorado ("Commu- developing its CRA plan. This model CRA program nity"), a nonprofit group providing support to regional provides guidance for determining the credit needs of social service organizations, regarding the CRA record the community through various outreach programs of banking subsidiaries of Central Bancorporation, tailored to the unique characteristics of each commuincluding Central Bank of Denver, Denver, Colorado nity and specifies mechanisms for ensuring and moni- ("Denver Bank"). Community contended that several toring CRA compliance at each subsidiary bank of banking subsidiaries of Central Bancorporation had Central Bancorporation. lower loan-to-deposit ratios than those of other local The Board also has received protests from Historic banks, and it criticized Central Bancorporation's Denver, Inc., the Denver Chapter of the American record in the areas of housing-related credit and con- Institute of Architects, the National Trust for Historic tributions to charities. Preservation, and the Colorado Historical Society. In light of these comments, the Board has reviewed The protestants have requested a public hearing and the overall CRA record of Central Bancorporation and that the Board not approve the applications until First of the Denver Bank in particular. In the most recent Bank System provides assurances that it will not examination, Central Bancorporation's subsidiary demolish the Central Bank West building, located in banks received a satisfactory CRA rating. With regard Denver, Colorado, or until avenues to preserve the to housing-related extensions of credit, the Board building are explored. The protestants assert that the notes that the Denver Bank, which Community par- Central Bank West building, which has been desigticularly criticized, has generally played a larger role nated a historical landmark by the Denver City Counthan its peers in extending housing-related credit in cil, is being demolished as a result of the acquisition of less affluent neighborhoods. With regard to charitable Central Bancorporation by First Bank System. contributions and loan-to-deposit ratios, the Board In this regard, the protestants asserted that the notes that while the mandate of CRA encourages Federal Reserve System is required to comply with outreach to community organizations and may involve section 106 of the National Historic Preservation Act financial or other support for their activities, charitable (16 U.S.C. § 470f) ("NHPA"), prior to acting on the contributions are not an indicator that credit needs of applications. Section 106 of the NHPA provides that a community are being met, and loan-to-deposit ratios "(t)he head of any Federal agency having direct or are only a broad measure of lending activity. In indirect jurisdiction over a proposed Federal or federaddition, the record of Central Bancorporation and ally assisted undertaking in any State and the head of First Bank System in these areas is satisfactory. The any Federal department or independent agency having Board also notes that First Bank System has ex- authority to license any undertaking shall, prior to the pressed a willingness to meet with Community to approval of the expenditure of any Federal funds on discuss its concerns and is developing a plan to ap- the undertaking or prior to the issuance of any license, prove special lending programs to provide credit to as the case may be, take into account the effects of the low- and moderate-income groups. agency's undertaking on any district, site, building, The Board has also considered that First Bank structure, or object that is included in or eligible for System, in an effort to enhance the CRA performance inclusion in the National Register [of Historic of the Denver Bank and each subsidiary bank of Places]." In addition, the head of the agency is re- Central Bancorporation, has committed that First quired to afford the Advisory Council on Historic Bank System's corporate-wide CRA policy will be Preservation a reasonable opportunity to comment on implemented at each subsidiary bank of Central Ban- the undertaking. The protestants also asserted that the corporation immediately following consummation of possible demolition of the building reflects adversely the proposed transaction.7 Under this policy, First on Central Bancorporation's CRA performance, on Bank System has established a Community Responsi- the basis that participation in local community develbility Policy Committee, which consists of senior opment projects is a consideration in assessing a managment officials, to allocate resources and evalu- bank's record of performance under the CRA. ate the performance of First Bank System's subsidiary In accordance with the Board's practice and procebanks under the CRA. First Bank System also has dure for handling protested applications,8 the Federal developed a model CRA program to serve as a guide Reserve Bank of Minneapolis encouraged the parties to meet to clarify the issues relating to the Central Bank West building. Although parties were unable to 7. The Board recently approved First Bank System's corporate CRA policy and determined that the policy was consistent with its obligations under the CRA. First Bank System, 74 FEDERAL RESERVE BULLETIN 689 (1988). 8. See 12 C.F.R. § 262.25(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 827 come to a resolution of their differences, they submit- Based on these and all of the other facts of record in ted various written submissions concerning the pro- this case, the Board has determined that the convetests, which the Board has carefully considered. nience and needs factors are consistent with approval With regard to the protestants' assertions relating to of these applications.10 the NHPA, in order for this statute to apply, the First Bank System also has applied, pursuant to Board's action in deciding the instant applications section 4(c)(8) of the BHC Act, to acquire Central must constitute an "undertaking" within the meaning Bancorporation Life Insurance Company and thereby of the NHPA. The term "undertaking" has been engage in underwriting credit life insurance. This defined as "any project, activity, or program that can activity has been determined by the Board to be result in changes in the character or use of historic closely related to banking and permissible for bank properties [and is] under the direct or indirect jurisdic- holding companies. 12 C.F.R. § 225.25(b)(8)(i). Furtion of a Federal agency or licensed or assisted by a ther, there is no evidence in the record to indicate that Federal agency." 36 C.F.R. § 800.2(o). The Board's approval of this proposal would result in undue conaction on the pending applications does not, in the centration of resources, decreased or unfair competi- Board's view, constitute an undertaking within the tion, conflicts of interest, unsound banking practices, meaning of the statute. In deciding Applicant's request or other adverse effects on the public interest. Accordto acquire Central Bancorporation, the Board is not ingly, the Board has determined that the balance of the engaging in any activity that can result in changes in public interest factors it must consider under section the use of the Central Bank West building.9 In 1984, 4(c)(8) of the BHC Act is consistent with approval of Central Bank West building was sold by Central Ban- the application to acquire Central Bancorporation Life corporation, which reached an agreement with the Insurance Company. new owner that gives Central Bancorporation an op- Based on the foregoing and other facts of record, the tion either to repurchase the building or to pay a Board has determined that the applications under termination fee, demolish the building and deliver sections 3 and 4 of the BHC Act should be, and hereby cleared land to the owner. The decision whether to are, approved. The acquisition of Central Bancorporepurchase the site or to return a clean site to the ration and Central Life Insurance Company shall not owner is a private financial decision of Central Banbe consummated before the thirtieth calendar day corporation and not a matter that is licensed or asfollowing the effective date of this Order, or later than sisted by the Board. The Board notes that local efforts three months after the effective date of this Order, are underway to resolve the issue of preservation of unless such period is extended for good cause by the this structure. Board or the Federal Reserve Bank of Minneapolis, The Board has also considered the protestant's pursuant to delegated authority. The determination as arguments that the possible demolition reflects ad- to the nonbanking activities are subject to all of the versely on Central Bancorporation's performance un- conditions set forth in Regulation Y, including sections der the CRA. The evaluation of a bank's involvement 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and in community development projects is relevant to the CRA to the extent such involvement indicates a bank is meeting the credit needs of the entire community. 10. The Board has carefully considered the protestants' requests for As discussed above, Central Bancorporation's record a public hearing concerning the Central Bank West building. Although in meeting credit needs is satisfactory. With regard to section 3(b) of the Bank Holding Company Act does not require a public meeting or formal hearing in this instance, the Board may, in Central Bank West building in particular, no credit any case, order a public meeting or hearing. 12 C.F.R. § 262.3(e). The activities within the meaning of the CRA are involved. Board's Rules of Procedure also provide that a public meeting may be In light of these and other facts of record, the Board held to clarify factual issues related to the record of an applicant in meeting the convenience and needs of its community, or to provide an does not believe the protests relating to the building opportunity for interested persons to provide testimony. 12 C.F.R. provide a basis for finding Central Bancorporation's § 262.25(d). However, in the requests for a hearing, the protestants do CRA performance unsatisfactory. not present any material questions of fact in dispute that relate to matters within the Board's jurisdiction to consider. Rather, the protestants request to examine the specifics of any plans for the Central Bank West building, which are matters bearing on the preservation issue being considered at the local level. In addition, in accordance with the Board's practice and procedure for handling 9. The Board notes that the U.S. Court of Appeals for the Seventh protested applications, the Federal Reserve Bank of Minneapolis Circuit held that the decision of the Federal Deposit Insurance encouraged the parties to meet to clarify the issues relating to the Corporation on an application under the Federal Deposit Insurance Central Bank West building. Although parties were unable to come to Act, which employs factors similar to those found in the BHC Act, did a resolution of their differences, the Board believes the parties have not constitute an "undertaking" within the meaning of NHPA. had ample opportunity to present their arguments in writing and to Edwards v. First Bank of Dundee, 534 F. 2d 1242 (7th Cir. 1976). See respond to one another's submissions. In light of these facts, the also Western Bancshares, Inc. v. Board of Governors of the Federal Board believes that a public hearing is not necessary to clarify the Reserve System, 480 F. 2d 749 (10th Cir. 1973). record in this case and would not serve any useful purpose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

828 Federal Reserve Bulletin • December 1988 225.23(b)(3)), and to the Board's authority to regulate Central Bank of Chapel Hills, N.A., Colorado Springs, such modification or termination of the activities of the Colorado; The Central Colorado Bank, d/b/a Central holding company or any of its subsidiaries as the Bank of Colorado Springs, Colorado Springs, Colo- Board finds necessary to assure compliance with, or to rado; Central Bank of Garden of the Gods, N.A., prevent evasion of, the provisions and purposes of the Colorado Springs, Colorado; Central Bank of Pueblo, BHC Act and the Board's regulations and orders N.A., Pueblo, Colorado; The First National Bank of issued thereunder. Rocky Ford, Rocky Ford, Colorado; Central Bank of By order of the Board of Governors, effective Grand Junction, N.A., Grand Junction, Colorado; October 25, 1988. Peoples Bank of Arapahoe County, d/b/a Central Bank of Aurora, Aurora, Colorado; Central Bank of Chatfield, Jefferson County, Colorado; Central Bank of Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Heller, Kelley, and LaWare. Centennial, N.A., Littleton, Colorado; Central Bank of Inverness, N.A., Englewood, Colorado; Central JAMES MCAFEE Bank of Glenwood Springs, N.A., Glenwood Springs, Associate Secretary of the Board Colorado; Central Bank of Aspen, N.A., Aspen, Colorado; Central Bank of Greeley, Greeley, Colorado; Broomfield State Bank, d/b/a Central Bank of Broomfield, Broomfield, Colorado; North Denver Bank, APPENDIX A d/b/a Central Bank of North Denver, Denver, Colorado; Central Bank of Westminster, N.A., Westmin- The Academy Boulevard Bank, d/b/a Central Bank of ster, Colorado; and Central Bank of Denver, Denver, Academy Boulevard, Colorado Springs, Colorado; Colorado. APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant Bank(s) ^ Midwest Bankshares, Inc., First Belleville Bankshares, Inc., October 7, 1988 Colby, Kansas Belleville, Kansas Section 4 . Nonbanking Effective Activity/Company date Norwest Corporation, Fargo Insurance Agency, Inc., October 26, 1988 Minneapolis, Minnesota Fargo, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 829 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 AApppplliiccaanntt((ss)) BBaannkk((ss)) Bank date Alabama Bancorp, Highland Bank, Atlanta September 23, 1988 Birmingham, Alabama Birmingham, Alabama Beverly Bancorporation, Inc., First Wilmington Corp., Chicago September 30, 1988 Chicago, Illinois Wilmington, Illinois CBS Bancshares, Inc., Citizens Bank, Atlanta September 23, 1988 Spencer, Tennessee Gainesboro, Tennessee Cedar Financial Holding, Inc., Cedar Security Bank, Kansas City September 30, 1988 Fordyce, Nebraska Fordyce, Nebraska Clifton Bancshares, Inc., First National Bank, Kansas City September 29, 1988 Wamego, Kansas Clifton, Kansas Commerce Bancorp, Inc., National Bank of Commerce, Chicago September 27, 1988 Berkeley, Illinois Berkeley, Illinois County Bancorporation, Inc., Century State Bancshares, Inc., St. Louis October 14, 1988 Jackson, Missouri Columbia, Missouri Dahlonega Bancorp, Inc., First National Bank of Polk Atlanta September 27, 1988 Dahlonega, Georgia County, Copperhill, Tennessee Dakota Company, Inc., Valley National Bank, Minneapolis October 18, 1988 Minneapolis, Minnesota Sioux Falls, South Dakota South Dakota Bancorp, Inc., Minneapolis, Minnesota E.N.B. Holding Company, Inc., Ellenville National Bank, New York October 7, 1988 Ellenville, New York Ellenville, New York Fidelity Bancshares, Inc., Fidelity Bank, Dallas October 13, 1988 Fort Worth, Texas Fort Worth, Texas First Executive Bancorp, Inc., First Executive Bank, Philadelphia September 30, 1988 Philadelphia, Pennsylvania Philadelphia, Pennsylvania First Illini Bancorp, Inc., First National Bank in Galva, Chicago October 14, 1988 Galesburg, Illinois Galva, Illinois First National Bancorp, Inc., First National Bank of Lisbon, New York September 23, 1988 Norfolk, New York Lisbon, New York First & Peoples Bancshares, First & Peoples Bank, Cleveland September 23, 1988 Inc., Russell, Kentucky Russell, Kentucky First Valley BankCorp., First Valley Bank, Minneapolis September 26, 1988 Seeley Lake, Montana Seeley Lake, Montana First Wisconsin Corporation, Metropolitan Bank Group, Inc., Chicago September 28, 1988 Milwaukee, Wisconsin Bloomington, Minnesota F.W.S.B. Corporation, Milwaukee, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Federal Reserve Bulletin • December 1988 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date First Wisconsin Corporation, St. Anthony Bancorporation, Chicago October 19, 1988 Milwaukee, Wisconsin Inc., F.W.S.B. Bancorporation, Inc., Omaha, Nebraska Milwaukee, Wisconsin F & M National Corporation, Blakeley Bank and Trust Richmond September 26, 1988 Winchester, Virginia Company, Ranson, West Virginia Ford Bank Group, Inc., Lubbock Bancorporation, Inc. Dallas October 19, 1988 Lubbock, Texas Lubbock, Texas Frandsen Financial Corporation, First State Bank, Minneapolis October 12, 1988 Luck, Wisconsin Braham, Minnesota Lakeside State Bank, Isle, Minnesota G. Fields Bancshares, Inc., Security Bank of Southwest St. Louis October 14, 1988 Cassville, Missouri Missouri, Cassville, Missouri Great Lakes Financial Home wood Holdings, Inc., Chicago October 7, 1988 Resources, Inc., Omaha, Nebraska Blue Island, Illinois Hazard Bancorp, Peoples Bank and Trust Cleveland October 11, 1988 Hazard, Kentucky Company, Hazard, Kentucky High Point Financial Corp., The Pocono Bank, New York October 7, 1988 Branchville, New Jersey Milford, Pennsylvania Horizon Banks, Inc., Horizon Bank and Trust, Boston October 14, 1988 Concord, New Hampshire Concord, New Hampshire Iowa National Bankshares Corp., Oelwein State Bank, Chicago October 4, 1988 Waterloo, Iowa Oelwein, Iowa Jay Financial Corporation, The First National Bank of Chicago October 20, 1988 Portland, Indiana Portland, Portland, Indiana Manufacturers National Affiliated Bank/Chicago, Chicago October 6, 1988 Corporation, Chicago, Illinois Detroit, Michigan Affiliated Banc Group, Inc., Morton Grove, Illinois Miners Bancshares, Inc., The Miners State Bank of Kansas City September 21, 1988 Frontenac, Kansas Frontenac, Frontenac, Kansas Mission-Valley Bancorp, Lamorinda Financial San Francisco September 30, 1988 Pleasanton, California Corporation, Lafayette, California Morrill Bancshares, Inc., Morrill & Janes Bancshares, Kansas City October 4, 1988 Sabetha, Kansas Inc., Hiawatha, Kansas National City Corporation, American Security Company of Cleveland September 29, 1988 Cleveland, Ohio Bedford Incorporated, FKYN Acquisition Corp., Bedford, Indiana New Salem, Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 831 Section 3—Continued Reserve Effective AApppplliiccaanntt((ss)) BBaannkk((ss)) Bank date National Community Banks, National Community Bank of New York October 4, 1988 Inc., New Jersey, May wood, New Jersey Rutherford, New Jersey Ohio Bancorp, The Mingo National Bank of Cleveland October 20, 1988 Youngstown, Ohio Mingo Junction, Mingo Junction, Ohio The Page Holding Company, Farmers and Merchants State Minneapolis October 12, 1988 Plankinton, South Dakota Bank, Plankinton, South Dakota Presidential Holdings, Inc., Bank of Bourbonnais, Chicago September 27, 1988 Bourbonnais, Illinois Bourbonnais, Illinois Rocky Mountain Bancorporation, Western Bancshares, Inc., Minneapolis September 30, 1988 Inc., Billings, Montana Billings, Montana State Bancorp, Inc., Spurgeon Financial Corporation, St. Louis September 23, 1988 Washington, Indiana Spurgeon, Indiana Stockton Bancshares, Inc., The Trego-WaKeeney State Kansas City September 23, 1988 Stockton, Kansas Bank, WaKeeney, Kansas Sysco Financial, Inc., Brickyard Bank, Chicago September 27, 1988 Lincoln wood, Illinois Chicago, Illinois The Summit Bancorporation, Somerset Bancorp, Inc., New York September 29, 1988 Summit, New Jersey Somerville, New Jersey Union Planters Corporation, Pickett County Bancshares, Inc., St. Louis October 14, 1988 Memphis, Tennessee Byrdstown, Tennessee Valley Banc Services Corp., Fox Valley Bank, Chicago October 19, 1988 St. Charles, Illinois St. Charles, Illinois Valley Ridge Financial Corp., Kent City State Bank, Chicago September 27, 1988 Kent City, Michigan Kent City, Michigan Vista Bancorporation, Citizens Bank and Trust St. Louis October 5, 1988 Van Buren, Arkansas Company, Van Buren, Arkansas Warren Bancorp, Inc., Beverly National Corporation, Boston October 6, 1988 Peabody, Massachusetts Beverly, Massachusetts Washington Commercial Redmond National Bank, San Francisco September 23, 1988 Bancorp, Redmond, Washington Redmond, Washington Waterloo Bancshares, Inc., Commercial State Bank of St. Louis October 5, 1988 Waterloo, Illinois Waterloo, Waterloo, Illinois Section 4 Nonbanking Reserve Effective Applicant Activity/Company Bank date Dacotah Bank Holding Co., Bristol Insurance, Inc., Minneapolis September 28, 1988 Aberdeen, South Dakota Bristol, South Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 Federal Reserve Bulletin • December 1988 Sections 3 and 4 Nonbanking Reserve Effective Applicant Activity/Company Bank date Chattahoochee Bancorp, Inc., The Buckhead Bank, Atlanta October 7, 1988 Atlanta, Georgia Atlanta, Georgia The Chattahoochee Financial Corporation, Marietta, Georgia 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 First City Bank of Dallas, First City Bank-East Dallas, Dallas September 29, 1988 Dallas, Texas Dallas, Texas First City Bank-Market Center, N.A., Dallas, Texas First City Bank-Valley View, Dallas, Texas First City Bank-Farmers Branch, Farmers Branch, Texas First City Bank of Garland, N.A., Garland, Texas First City National Bank in Grand Prairie, Grand Prairie, Texas First City Bank of Lancaster, Lancaster, Texas First City Bank of Richardson, Richardson, Texas First Virginia Bank-South Colonia American National Richmond October 4, 1988 Central, Bank, Amherst, Virginia Roanoke, Virginia Ranson Interim Bank, Inc., Blakeley Bank and Trust Richmond September 26, 1988 Ranson, West Virginia Company, Ranson, West Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 833 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 National Association of Casualty and Surety Agents, (N.D. Tex., filed July 7, 1988). et al., v. Board of Governors, Nos. 87-1644, VanDyke v. Board of Governors, No. 88-5280 (8th 87-1801, 88-1001 88-1206, 88-1245, 88-1270 (D.C. Cir., filed July 13, 1988). Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, March 18, Credit Union National Association, Inc., et al., v. March 30, April 7, 1988). Board of Governors, No. 88-1295 (D.D.C. May 13, Teichgraeber v. Board of Governors, No. 87-2505-0 1988). (D. Kan., filed Oct. 16, 1987). Bonilla v. Board of Governors, No. 88-1464 (7th Cir., Northeast Bancorp v. Board of Governors, No. filed March 11, 1988). 87-1365 (D.C. Cir., filed July 31, 1987). Cohen v. Board of Governors, No. 88-1061 (D.N.J., National Association of Casualty & Insurance Agents filed March 7, 1988). v. Board of Governors, Nos. 87-1354, 87-1355 (D.C. Stoddard v. Board of Governors, No. 88-1148 (D.C. Cir., filed July 29, 1987). Cir., filed Feb. 25, 1988). The Chase Manhattan Corporation v. Board of Gov- Independent Insurance Agents of America, Inc. v. ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987). Board of Governors, No. 87-1686 (D.C. Cir., filed Lewis v. Board of Governors, Nos. 87-3455, 87-3545 Nov. 19, 1987). (11th Cir., filed June 25, Aug. 3, 1987). Irving Bank Corporation v. Board of Governors, CBC, Inc. v. Board of Governors, No. 86-1001 (10th No. 88-1176 (D.C. Cir., filed March 1, 1988). Cir., filed Jan. 2, 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks A22 Gross demand deposits—individuals, MONEY STOCK AND BANK CREDIT partnerships, and corporations A3 Reserves, money stock, liquid assets, and debt measures A4 Reserves of depository institutions, Reserve FINANCIAL MARKETS Bank credit A23 Commercial paper and bankers dollar A5 Reserves and borrowings—Depository acceptances outstanding institutions A23 Prime rate charged by banks on short-term A6 Selected borrowings in immediately available business loans funds—Large member banks A24 Interest rates—money and capital markets A25 Stock market—Selected statistics A26 Selected financial institutions—Selected assets POLICY INSTRUMENTS and liabilities A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions FEDERAL FINANCE A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation FEDERAL RESERVE BANKS A30 Gross public debt of U.S. Treasury—Types A10 Condition and Federal Reserve note statements and ownership All Maturity distribution of loan and security A31 U.S. government securities dealers— holdings Transactions A32 U.S. government securities dealers—Positions and financing MONETARY AND CREDIT AGGREGATES A33 Federal and federally sponsored credit agencies—Debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock, liquid assets, and debt measures SECURITIES MARKETS AND A15 Bank debits and deposit turnover CORPORATE FINANCE A16 Loans and securities—All commercial banks A34 New security issues—State and local governments and corporations A35 Open-end investment companies—Net sales COMMERCIAL BANKING INSTITUTIONS and asset position A17 Major nondeposit funds A35 Corporate profits and their distribution A18 Assets and liabilities, last-Wednesday-of-month A36 Total nonfarm business expenditures on new series plant and equipment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Money Stock and Bank Credit A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent) IItteemm 1987 1988 1988 Q4 Ql Q2 Q3 May June July' Aug.' Sept. Reserves of depository institutions2 1 Total 2.5 3.5 5.8 4.3 -.2 5.4 11.9 -2.9 -1.7 2 Required 1.4 2.9 7.2 4.0 -3.8 8.6 9.7 -1.9 -2.3 3 Nonborrowed 2.4 1.5 -6.5 2.5 8.5 -4.8 5.1 1.1 6.5 4 Monetary base 7.8 8.3 7.6 6.6 5.0 6.2 10.4 2.5 5.6 Concepts of money, liquid assets, and debt4 S Ml 3.9 3.8 6.3 5.3 .2 9.8 9.1 .2 .0 6 M2 3.9 6.8 7.7 3.7 4.5 5.7' 3.7 2.3 1.3 7 M3 5.5 7.C 7.5 5.6 5.4' 7.7 6.8 3.7 1.7 8 L 5.8 6.6r 8.7 n.a. 8.1 3.7' 11.3 5.2 n.a. 9 Debt 10.C 8.c 8.5 8.3 8.3 8.1' 7.8 8.7 n.a. Nontransaction components 10 In M2 .... 3.9 7.8 8.2r 3.2 6.1 4.3' 1.9 3.1 1.8 11 In M3 only6 11.9 8.C 6.¥ 12.9 8.6' i5.<y 18.4 8.9 3.4 Time and savings deposits Commercial banks 12 Savings .7 6.3 11.0 8.6 11.7 12.9 9.6 7.0 -1.9 13 Small-denomination time® 14.8 13.7 11.8 10.1 6.6 6.2 8.8 12.6 19.4 14 Large-denomination time • 10.5 3.4 6.7 21.4 7.7 23.4 25.1 20.4 18.3 Thrift institutions 15 Savings -3.8 -2.4 6.6 5.2 3.0 9.0 6.5 4.5 -3.0 16 Small-denomination time 16.0 21.3 14.0 4.7 10.7 1.7 1.3 6.1 11.8 17 Large-denomination time 22.2 13.7' 9.3r 4.1 8.7' .0 2.1 .0 22.2 Debt components4 18 Federal 7.6 8.C 8.3r 7.0 3.<r 5.9T 5.4 9.9 n.a. 19 Nonfederal 10.7' 8.0 8.6 8.7 10.0' 8.8 8.5 8.3 n.a. 20 Total loans and securities at commercial banks 5.3' 5.4r 11.0' 7.3 12.4' 10.3' 6.3 7.2 -.6 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 Federi 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 • December 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 July Aug. Sept. Aug. 17 Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 253,673 251,530 256,979 252,047 250,017 251,874 253,011 254,921 258,506 259,277 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 225,800 223,140 226,629 223,742 222,259 223,018 224,034 225,024 228,026 227,983 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 224,319 223,140 224,058 223,742 222,259 223,018 224,034 224,040 223,886 224,405 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.....,,,,, ,,,,, 1,481 0 2,571 0 0 0 0 984 4,140 3,578 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,140 7,194 8,525 7,192 7,191 7,191 7,191 7,495 8,887 9,715 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,242 7,194 7,191 7,192 7,191 7,191 7,191 7.191 7,191 7,191 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 898 0 1,334 0 0 0 0 304 1,696 2,524 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 3,508 3,267 2,722 3,267 3,222 3,342 2,844 3,031 2,911 2,257 1111100000 FFFFFllllloooooaaaaattttt 936 595 1,154 369 426 501 1,190 1.192 990 909 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 15,289 17,334 17,951 17,478 16,916 17,822 17,751 18,180 17,692 18,413 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,063 11,062 11,062 11,062 11,062 11,062 11,061 11,062 11,062 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 18,503 18,555 18,606 18,552 18,562 18,572 18,583 18,597 18,611 18,625 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 235,965 235,916 236,382 236,466 235,641 235,166 237,046 237,454 236,170 235,096 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss22222 414 396 392 398 394 397 397 389 389 389 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 3,695 3,153 7,684 2,676 3,116 3,725 3,178 3,986 8,971 12,209 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 272 227 236 223 213 259 245 221 231 235 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,857 1,899 1,848 1,998 1,873 1,781 1,795 1,786 1,813 1,859 2222200000 OOOOOttttthhhhheeeeerrrrr 329 377 404 357 315 540 389 332 467 440 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 7,306 7,329 7,632 7,400 7,350 7,358 7,442 7,589 7,716 7,674 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss33333 38,418 36,868 37,087 37,161 35,756 37,301 37,182 37,841 37,441 36,079 End-of-month figures Wednesday figures 1988 1988 July Aug. Sept. Aug. 17 Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 252,440 251,520 261,855 250,637 249,301 251,520 251,460 256,053 274,670 261,227 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 224,450 222,795 229,181 223,152 220,473 222,795 220,445 225,593 237,589 228,858 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 224,450 222,795 223,573 223,152 220,473 222,795 220,445 223,556 224,051 226,015 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 5,608 0 0 0 0 2,037 13,538 2,843 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 7,201 7,191 11,073 7,191 7,191 7,191 7,191 7,842 10,730 10,285 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 7,201 7,191 7,191 7,191 7,191 7,191 7,191 7,191 7,191 7,191 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 3,882 0 0 0 0 651 3,539 3,094 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 3,650 3,237 2,154 3,356 3,318 3,237 2,995 2,907 7,373 2,664 3333322222 FFFFFllllloooooaaaaattttt 774 659 1,199 478 816 659 2,316 1,335 848 946 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 16,365 17,638 18,248 16,460 17,503 17,638 18,513 18,376 18.130 18,474 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,063 11,061 11,062 11,062 11,062 11,061 11,062 11,062 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 18,531 18,581 18,637 18,561 18,571 18,581 18,595 18,609 18,623 18,637 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 234,990 235,881 235,527 236,337 235,366 235,881 237,815 237,106 235,756 235,248 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 397 398 389 394 397 398 389 389 389 389 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 3,910 4,390 13,023 3,672 3,503 4,390 2,648 4,846 19,014 14,694 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 269 231 338 234 215 231 205 198 212 331 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,642 1,634 1,605 1,637 1,637 1,637 1,637 1,640 1,640 1,603 4444422222 OOOOOttttthhhhheeeeerrrrr 291 392 358 324 294 392 353 339 344 371 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 7,200 7,020 7,899 7,120 7,170 7,020 7,410 7,447 7,888 7,509 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 38,352 36,234 37,433 35,560 35,370 36,231 35,678 38,777 44.131 35,799 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 1988 Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. 1 Reserve balances with Reserve Banks2 27,620 37,360 37,673 34,211 36,027 38,429 36,509 37,907 37,992 36,911 2 Total vault cash 22,953 24,079 26,155 28,119 25,926 25,200 25,873 25,717 26,479 26,895 3 Vault4.. 20,522 22,199 24,449 25,836 24,049 23,636 24,172 24,084 24,763 25,054 4 Surplus5 2,431 1,879 1,706 2,283 1,877 1,564 1,700 1,632 1,715 1,841 5 Total reserves 48,142 59,560 62,123 60,047 60,076 62,064 60,681 61,991 62,756 61,965 6 Required reserves i 47,085 58,191 61,094 58,914 59,147 61,205 59,641 61,103 61,749 61,012 7 Excess reserve balances at Reserve Banks 1,058 1,369 1,029 1,133 929 859 1,040 888 1,007 953 8 Total borrowings at Reserve Banks 1,318 827 777 3% 1,752 2,993 2,578 3,083 3,440 3,241 9 Seasonal borrowings at Reserve Banks 56 38 93 75 119 146 246 311 376 423 10 Extended credit at Reserve Banks 499 303 483 205 1,478 2,624 2,107 2,554 2,538 2,653 Biweekly averages of daily figures for weeks ending 1988 June 1 June 15 June 29 July 13 July 27 Aug. 10 Aug. 24 Sept. r Sept. 21 Oct. 5 11 Reserve balances with Reserve Banks2 35,707 38,644 37,260 38,831 37,399 37,343 36,442 37,273 37,625 36,532 12 Total vault cash3 26,265 25,118 26,237 26,270 26,647 26,571 27,400 26,351 26,787 26,924 13 Vault 24,418 23,614 24,492 24,629 24,889 24,762 25,513 24,555 25,054 25,079 14 Surplus5 1,847 1,504 1,745 1,641 1,758 1,810 1,887 1,797 1,733 1,845 15 Total reserves6 60,125 62,258 61,752 63,460 62,288 62,104 61,935 61,827 62,679 61,611 16 Required reserves i 58,943 61,563 60,692 62,599 61,085 61,309 60,954 60,705 61,8% 60,430 17 Excess reserve balances at Reserve Banks 1,182 696 1,060 861 1,203 796 981 1,123 783 1,181 18 Total borrowings at Reserve Banks 3,120 3,465 2,658 3,656 3,268 3,339 3,245 3,093 2,971 2,438 19 Seasonal borrowings at Reserve Banks 269 287 337 352 390 407 431 432 408 433 20 Extended credit at Reserve Banks 2,538 2,986 2,138 2,340 2,663 2,748 2,671 2,482 2,075 1,704 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. reserve requirements less required reserves. 4. Equal to all vault cash held during the lagged computation period by 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 • December 1988 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1988 week ending Monday Maturity and source Jan. 25 Feb. 1 Feb. 8 Feb. 15 Feb. 22 Feb. 29 Mar. 7 Mar. 14 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 69,234 68,643 73,658 71,220 70,499 68,564 74,546 74,875 2 For all other maturities 8,966 8,899 10,198 10,983 10,336 10,925 10,486 10,990 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 28,418 28,852 33,324 34,496 35,712 36,350 38,939 40,780 4 For all other maturities 6,140 6,356 6,762 7,250 6,146 5,926 7,002 7,567 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 15,7% 16,800 15,386 13,137 14,778 13,368 12,705 12,181 6 For all other maturities 13,614 14,309 15,290 16,451 13,610 14,974 13,797 14,617 All other customers 7 For one day or under continuing contract 26,596 26,307 25,172 25,709 25,270 24,686 24,513 24,704 8 For all other maturities 10,378 10,268 9,986 10,605 10,130 10,652 10,778 11,583 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 35,063 36,523 35,727 34,848 36,414 32,112 35,273 35,864 10 To all other specified customers 14,446 15,399 15,169 14,115 13,620 13,381 13,953 14,047 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 10/ O 2 n 6 /88 Eff d e a c te ti ve Pre r v at i e o us 10/ O 2 n 6 /88 Eff d e a c te ti ve Pre r v at i e o us 10/ O 2 n 6 /88 Eff d e a c te ti ve Pre r v at i e o us Effective date Boston 6 Vl 8/9/88 6 6 Vl 8/9/88 6 8.80 10/20/88 8. 80 10/6/88 New York 8/9/88 8/9/88 10/20/88 10/6/88 Philadelphia 8/9/88 8/9/88 10/20/88 10/6/88 Cleveland 8/9/88 8/9/88 10/20/88 10/6/88 Richmond 8/9/88 8/9/88 10/20/88 10/6/88 Atlanta 8/9/88 8/9/88 10/20/88 10/6/88 Chicago 8/10/88 8/10/88 10/20/88 10/6/88 St. Louis 8/9/88 8/9/88 10/20/88 10/6/88 Minneapolis 8/9/88 8/9/88 10/20/88 10/6/88 Kansas City 8/9/88 8/9/88 10/20/88 10/6/88 D Sa a n l la F s r ancisco ... 6V1 8 8 / / 1 9 1 / / 8 8 8 8 6 6 Vl 8 8 / / 1 9 1 / / 8 8 8 8 6 8.80 1 1 0 0 / / 2 2 0 0 / / 8 8 8 8 8. 80 1 1 0 0 / / 6 6 / / 8 8 8 8 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. B o a f n k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1980—July 28 10-11 10 11998844——AApprr.. 9 m-9 9 1978-—Jan. 9 6-6 Vi 6 Vl 29 10 10 13 9 9 20 6Vl 6 Vl Sept. 26 11 11 Nov. 21 8VS May 11 6V2-7 7 Nov. 17 12 12 26 8 Vi 8 Vl 12 I-71 Vi 7 Dec. 5 12-13 13 Dec. 24 8 8 July 3 IV* Aug. 2 1 1 0 77V34/ 4 7mV4 1981—May 5 8 13 1 - 4 1 4 1 1 4 4 11998855——MMaayy 2 2 0 4 lV IV ii % I I V V i i O Se c p t. t . 2 1 2 6 8-88V 8 V 55 8S Vi Nov. 2 6 13 1 - 3 1 4 1 1 3 3 1986—Mar. 7 1-lVi 7 20 8 Vi Dec. 4 12 12 10 7 7 Nov. 1 SVi-9Vi 9 Vl Apr. 21 6VS-7 6 Vl 3 9Vi 9 Vl 1982—July 20 UVl-12 1114 July 11 6 6 23 1 \Vi 1114 AAuugg.. 21 5Vi-6 5 Vi 1979--J A S u e u ly p g t . . 2 2 1 1 0 0 7 9 1 1 0 01W - 0 1 1 V 0 0 - 5 W 1 1 I \ 1 1 m 0 1 O V2 Aug. 2 1 7 2 3 6 1 11 0 1 - - 1 1 0 1 1 ^ I 0 V ^ i 1 1 1 1 0 1 0 1 Vi 11998877——SSeepptt.. 2 1 2 4 1 5W 5 6 V - i 6 6 6 5 Vi 21 11 11 30 10 10 Oct. 8 II-12 12 Oct. 12 9Vi-10 9 Vi 11998888——AAuugg.. 9 6-6 Vl 6 Vi 10 12 12 13 9 Vi 9 Vi 11 6 Vi 6 Vi Nov. 22 9-9 Vi 9 6V1 1980--Feb. 15 12-13 13 26 9 9 In effect October 26, 1988 6 Vl 19 13 13 Dec. 14 8'/2-9 9 May 29 12-13 13 15 HVl-9 8 Vi 30 12 12 17 8 Vi SVi 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. c 1 r 9 e 8 d 5 i , t . a n T d h t e h e p r in o t g e r r a e m st r w a a te s w re a e s s a ta f b ix li e s d h e r d a te o n V l F p e e b r . c e 1 n 8 t , a b 1 o 98 v 6 e t a h n e d ra a t g e a o in n o a n d ju Ja s n tm . e 2 n 8 t , ad I j n u st 1 m 9 e 8 n 0 t a c n re d d it 1 9 b 8 o 1 r , r o t w he i ng F s e b d y e r i a n l st R it e u s ti e o r n v s e w a i p th p l d ie e d p o a s its s u o r f c h $5 ar 0 g 0 e m t i o ll io s n h o or r t- m te o r r m e 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 four weeks in a calendar Vi 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, when 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 • December 1988 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the Monetary Control Act Type of deposit, and deposit interval2 Effective date Net transaction accounts3' $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, nonpersonal time deposits, and Eurocurrency liabilities) of each depository 4. The Monetary Control Act of 1980 requires that the amount of transaction institution be subject to a zero percent reserve requirement. The Board is to adjust accounts against which the 3 percent reserve requirement applies be modified the amount of reservable liabilities subject to this zero percent reserve require- annually by 80 percent of the percentage increase in transaction accounts held by ment each year for the succeeding calendar year by 80 percent of the percentage all depository institutions, determined as of June 30 each year. Effective Dec. 15, increase in the total reservable liabilities of all depository institutions, measured 1987 for institutions reporting quarterly and Dec. 29, 1987 for institutions on an annual basis as of June 30. No corresponding adjustment is to be made in reporting weekly, the amount was increased from $36.7 million to $40.5 million. the event of a decrease. On Dec. 15, 1987, the exemption was raised from $2.9 5. In general, nonpersonal time deposits are time deposits, including savings million to $3.2 million. In determining the reserve requirements of depository deposits, that are not transaction accounts and in which a beneficial interest is institutions, the exemption shall apply in the following order: (1) net NOW held by a depositor that is not a natural person. Also included are certain accounts (NOW accounts less allowable deductions); (2) net other transaction transferable time deposits held by natural persons and certain obligations issued accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting to depository institution offices located outside the United States. For details, see with those with the highest reserve ratio. With respect to NOW accounts ana section 204.2 of Regulation D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars Type of transaction 1985 1986 1987 Feb. Mar. Apr. May June July U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 2 4 3 1 R G E G x e r r o d o c s h e s s s m a n s p p g a u t e l i r e o c s n h s a ses 2 4 3 2 , , , 1 5 2 1 0 1 8 0 4 0 2 2 2 1 , , , 5 6 0 0 0 0 2 2 0 0 1 6 9 8 , , , 0 0 9 2 5 8 9 0 3 0 1, 3 5 60 3 4 0 08 6 5600 0 0 42 0 30 0 51 0 5 0 0 5 6 Ot G G he r r r o o s s s s s w p s it a u h l r i e n c s h 1 a s y e e s ar 1,3490 1900 3,6 3 5 0 8 0 0 0 0 0 1,092 0 0 0 0 0 0 0 7 Maturity shift 19,763 18,673 21,502 1,939 2,051 868 1,646 1,384 1,033 9 8 R Ex ed ch em an p g t e i ons -17,7170 -20,1790 -20,38 7 8 0 -2,8680 -2,0890 -1,68 0 8 -4,324 0 -1,826 0 -87 0 1 1 0 1 1 t G G o r r 5 o o s s y s s e p s a a u r l s r e c s h ases 2,1850 8903 10, 4 2 5 3 2 1 800 0 0 0 3,661 0 0 0 0 0 0 0 12 Maturity shift -17,459 -17,058 -17,974 -952 -2,051 -823 -1,102 -1,384 -997 13 Exchange 13,853 16,984 18,938 2,643 2,089 1,434 3,724 1,826 0 1 1 4 5 5 t G G o r r 1 o o 0 s s s s y p s e a u a l r r e s c s h ases 4 1 5 0 8 0 2360 2,4410 17 0 5 1,017 0 0 0 0 0 16 Maturity shift -1,857 -1,620 -3,529 -987 -45 -387 -36 17 Exchange 2,184 2,050 950 150 254 400 87 Over 10 years 2 1 1 0 9 8 G M G r r a o o t s u s s s r i s p ty a u l r e s c s h h i a ft s es -4 2 4 9 7 03 150 0 8 1,850 0 8 96 0 6 0 -157 0 0 21 Exchange 1,679 1,150 500 0 200 All maturities 2 2 2 2 3 4 G G Re r ro o d s s e s s m p s p a u t l i r e o c s n h s a ses 2 4 6 3 , , , 2 4 5 1 9 0 8 9 0 2 2 4 1 , , , 5 0 0 0 7 0 2 8 0 3 6 9 7 , , , 8 0 1 0 9 7 2 9 1 1 1 , , 3 5 6 1 0 4 3 0 6 560 0 0 7,160 0 0 51 0 0 5 Matched transactions 25 Gross sales 866,175 927,997 950,923 97,892 104,527 86,900 115,287 73,708 81,979 26 Gross purchases 865,968 927,247 950,935 99,139 104,572 85,608 115,115 72,966 83,464 Repurchase agreements1 27 Gross purchases 134,253 170,431 314,620 18,696 15,871 10,520 22,978 28 Gross sales 132,351 160,268 324,666 11,088 23,478 5,334 28,164 29 Net change in U.S. government securities 20,477 29,989 11,235 -1,520 605 13,476 -7,779 -3,186 FEDERAL AGENCY OBLIGATIONS 3 3 1 0 G G Ou r ro o tr s s i s s g h p s t a u l r e c s h tr a a s n e s s a ctions 0 0 0 0 0 0 0 0 32 Redemptions 162 398 276 120 Repurchase agreements2 33 Gross purchases 22,183 31,142 80,353 4,243 4,771 5,083 12,355 34 Gross sales 20,877 30,522 81,351 1,447 7,566 2,843 14,594 35 Net change in federal agency obligations . 1,144 222 -1,274 -3 2,676 -2,807 2,239 -2,306 36 Total net change in System Open Market Account 21,621 30,211 9,961 -1,541 602 16,151 -10,585 6,683 -5,492 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 • December 1988 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1988 1988 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 July Aug. Sept. Consolidated condition statement ASSETS 1 Gold certificate account 11,061 11,062 11,062 11,063 11,063 11,063 11,061 11,062 2 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 3 370 354 360 378 384 383 370 397 Loans 4 To depository institutions 3,237 2,995 2,907 7,373 2,664 3,650 3,237 2,154 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 7,191 7,191 7,191 7,191 7,191 77,,220011 7,191 77,,119911 8 Held under repurchase agreements 0 0 651 3,539 3,094 0 0 3,882 U.S. Treasury securities Bought outright 9 Bills 105,818 103,468 106,579 107,074 109,038 107,473 105,818 106,5% 10 Notes 87,484 87,484 87,484 87,484 87,484 87,484 87,484 87,484 11 Bonds 29,493 29,493 29,493 29,493 29,493 29,493 29,493 29,493 12 Total bought outright2 222,795 220,445 223,556 224,051 226,015 224,450 222,795 223,573 13 Held under repurchase agreements 0 0 2,037 13,538 2,843 0 0 5,608 14 Total U.S. Treasury securities 222,795 220,445 225,593 237,589 228,858 224,450 222,795 229,181 15 Total loans and securities 233,223 230,631 236,342 255,692 241,807 235,301 233,223 242,408 16 Items in process of collection 6,283 10,631 7,600 7,664 6,788 7,278 6,283 8,052 17 Bank premises 732 735 734 735 733 729 732 736 Other assets 18 Denominated in foreign currencies 9,797 9,801 9,838 9,203 9,557 7,561 9,797 9,528 19 All other4 7,109 7,977 7,804 8,192 8,184 8,075 7,109 7,984 20 Total assets 273,593 276,209 278,758 297,945 283,534 275,408 273,593 285,185 LIABILITIES 21 Federal Reserve notes 218,068 219,963 219,246 217,900 217,385 217,240 218,068 217,676 Deposits 22 To depository institutions 37,868 37,315 40,417 45,771 37,402 39,994 37,868 39,038 23 U.S. Treasury—General account 4,390 2,648 4,846 19,014 14,694 3,910 4,390 13,023 24 Foreign—Official accounts 231 205 198 212 331 269 231 338 25 Other 392 353 339 344 371 291 392 358 26 Total deposits 42,881 40,521 45,800 65,341 52,798 44,464 42,881 52,757 77 Deferred credit items ^ 5,624 8,315 6,265 6,816 5,842 6,504 5,624 6,853 28 Other liabilities and accrued dividends5 2,613 2,896 2,915 3,365 2,953 2,611 2,613 3,277 29 Total liabilities 269,186 271,695 274,226 293,422 278,978 270,819 269,186 280,563 CAPITAL ACCOUNTS 30 Capital paid in 2,083 2,084 2,085 2,090 2,097 2,119 2,083 2,097 31 Surplus 2,041 2,047 2,047 2,047 2,047 2,046 2,041 2,047 32 Other capital accounts 283 383 400 386 412 424 283 478 33 Total liabilities and capital accounts 273,593 276,209 278,758 297,945 283,534 275,408 273,593 285,185 3344 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 223,518 226,814 227,332 223,989 224,077 226,294 223,518 225,561 Federal Reserve note statement 3«> Federal Reserve notes outstanding issued to bank 263,958 264,135 264,866 265,669 265,693 262,021 263,958 265,671 36 LESS: Held by bank 45,890 44,172 45,620 47,769 48,308 44,781 45,890 47,995 37 Federal Reserve notes, net 218,068 219,963 219,246 217,900 217,385 217,240 218,068 217,676 Collateral held against notes net: 38 Gold certificate account 11,061 11,062 11,062 11,063 11,063 11,063 11,061 11,062 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 201,989 203,883 203,166 201,819 201,304 201,159 201,989 201,5% 42 Total collateral 218,068 219,963 219,246 217,900 217,385 217,240 218,068 217,676 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 A11 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1988 1988 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 July 29 Aug. 31 Sept. 30 1 Loans—Total 3 3 , , 0 23 6 7 3 2 2 , , 7 9 5 9 9 5 2 2 , , 6 9 6 0 5 7 7 7 , , 2 3 4 7 2 3 2 2 , , 5 66 7 4 5 3 3 , , 5 6 1 5 0 0 3 3 , , 2 0 3 6 7 3 2 1 , , 1 9 5 % 4 3 16 days to 90 days 17 0 4 23 0 6 24 0 2 13 0 1 8 0 9 14 0 0 17 0 4 15 0 8 0 0 0 0 0 0 0 0 6 7 W 16 i t d h a in y s 1 t 5 o d 9 a 0 y d s ays 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 9 0 1 U. W 1 S 6 . i t d T h a r in y e s a 1 s t u 5 o r d y 9 a 0 s y e d s c a ' u y r s i ties—Total 22 6 5 1 2 0 6 0 , , , , 7 3 7 2 9 9 7 % 5 3 4 2 4 6 2 8 9 7 0 , , , , 8 1 1 4 0 6 5 4 1 0 2 5 2 6 5 2 9 8 1 5 , , , , 6 9 6 5 2 5 8 9 2 9 0 3 2 2 6 3 5 3 9 0 7 , , , , 0 0 1 5 8 6 0 8 7 3 7 9 2 6 5 2 1 2 2 8 4 , , , , 1 8 8 6 9 5 8 5 7 8 6 2 2 5 2 6 7 6 4 4 , , , , 5 7 4 3 8 5 5 9 3 6 0 5 22 5 6 1 2 0 6 0 , , , , 7 3 7 2 9 9 7 % 5 3 4 2 5 2 7 2 5 3 0 , , , , 3 2 5 3 1 6 7 7 8 5 3 9 13 Over 1 year to 5 years 5 1 5 3 , , 1 7 2 0 4 0 5 1 5 3 , , 1 7 2 0 4 0 5 1 5 3 , , 1 7 2 0 4 0 5 1 5 3 , , 1 7 2 0 4 0 5 1 8 3 , , 9 7 1 0 5 0 5 1 3 5 , , 7 4 2 8 2 6 5 1 5 3 , , 1 7 2 0 4 0 5 1 5 3 , , 4 7 0 0 3 0 26,508 26,508 26,508 26,508 26,508 26,508 26,508 26,508 1 1 1 6 8 7 Fe W d 16 e i r t d a h a l i y n a s g 1 e t 5 o n d c 9 y a 0 y o d s b ' a l y i s g ations—Total 7 1 , , 1 2 6 6 9 8 4 6 1 7 7 0 7 1 , , 1 7 8 9 1 8 5 1 7 0 0 7 1 , , 8 6 9 6 4 5 3 2 2 6 3 9 1 3 0 1 , , , 7 7 7 6 5 3 3 1 4 0 3 9 1 3 0 1 , , , 3 2 7 6 0 8 4 1 9 5 2 4 7 1 , , 2 7 7 1 0 6 5 8 1 5 9 5 7 1 , , 1 2 6 6 9 8 4 6 1 7 7 0 7 1 , , 1 2 7 5 9 1 9 6 1 5 3 3 3,268 3,215 3,295 3,295 3,293 3,173 3,268 3,293 1,140 1,140 1,140 1,140 1,138 1,130 1,140 1,138 189 189 189 189 189 189 189 189 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 DomesticN onfinancial Statistics • December 1988 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1988 1984 1985 1986 1987 IItteemm Dec. Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 40.96 47.26 57.46 58.72 59.57 59.76 60.37 60.37 60.64 61.24 61.09 61.00 2 Nonborrowed reserves 37.77 45.94 56.63 57.94 59.18 58.01 57.38 57.79 57.55 57.80 57.85 58.16 3 Nonborrowed reserves plus extended credit 40.38 46.44 56.93 58.43 59.38 59.49 60.00 59.89 60.11 60.34 60.50 60.22 4 Required reserves 40.11 46.20 56.09 57.69 58.44 58.83 59.51 59.32 59.75 60.23 60.14 60.02 5 Monetary base 200.45 218.26 240.80 257.93 262.02 263.32 265.81 266.92 268.31 270.63 271.20 272.46 Not seasonally adjusted 6 Total reserves3 41.84 48.27 58.70 60.02 58.66 58.85 60.95 59.45 60.68 61.47 60.59 60.66 7 Nonborrowed reserves 38.65 46.95 57.87 59.25 58.27 57.10 57.95 56.88 57.60 58.03 57.35 57.82 8 Nonborrowed reserves plus extended credit4 41.26 47.45 58.18 59.73 58.47 58.58 60.58 58.98 60.15 60.57 60.00 59.88 9 Required reserves 40.99 47.21 57.33 58.99 57.53 57.92 60.09 58.41 59.79 60.46 59.64 59.68 10 Monetary base 203.39 221.49 244.55 262.05 259.01 260.77 265.01 265.73 269.44 272.41 271.73 271.58 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS6 11 Total reserves3 40.70 48.14 59.56 62.12 60.05 60.08 62.06 60.68 61.99 62.76 61.97 62.16 12 Nonborrowed reserves 37.51 46.82 58.73 61.35 59.65 58.32 59.07 58.10 58.91 59.32 58.72' 59.32 13 Nonborrowed reserves plus extended credit 40.09 47.41 59.04 61.86 59.82 59.58 61.89 60.08 61.47 61.99 61.26 61.32 14 Required reserves 39.84 47.08 58.19 61.09 58.91 59.15 61.21 59.64 61.10 61.75 61.01r 61.18 15 Monetary base5 204.18 223.53 247.71 266.16 262.60 263.98 268.13 268.90 272.65 275.59 275.03 274.89 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 . June July' Aug.' Sept. Seasonally adjusted 1 Ml 551.9 620.1 725.4 750.8 776.5 782.3 782.5 782.4 7, M2 2,363.6 2,562.6 2,807.7 2,901.0 3,016,5' 3,025.9 3,031.8 3,034.8 M3 2,978.3 3,196.4 3,490.8 3,664.2 3,812.5' 3,834.9 3,847.1 3,852.1 4 L 3,519.4 3,825.9 4,134.3 4,327.0 4,509.1' 4,552.2 4,572.4 n.a. 5 Debt 5,907.4' 6,716.8r 7,572.7' 8,279.3' 8,619.6' 8,675.6 8,738.2 n.a. Ml components 6 Currency' . 156.1 167.7 180.4 196.5 204.9 206.3 207.2 208.5 7 Travelers checks 5.2 5.9 6.5 7.1 7.3 7.2 7.2 7.3 8 Demand deposits5 244.1 267.2 303.3 288.0 289.9 290.6 290.0 288.3 9 Other checkable deposits6 146.4 179.2 235.2 259.3 274.4 278.3 278.1 278.3 Nontransactions components 10 In M27 1,811.7 1,942.5 2,082.3 2,150.2 2,240.0' 2,243.5 2,249.3 2,252.4 11 In M3 only8 614.7 633.8 683.1 763.2 796.0' 809.0 815.3 817.3 Savings deposits9 17 Commercial Banks 122.6 124.8 155.5 178.2 188.0 189.5 190.6 190.3 13 Thrift institutions 162.9 176.6 215.2 236.0 241.0 242.3 243.2 242.6 Small-denomination time deposits10 14 Commercial Banks 386.3 383.3 364.6 384.6 406.8 409.8 414.1 420.9 15 Thrift institutions 497.0 496.2 488.6 528.5 568.1 568.7 571.6 577.0 Money market mutual funds 16 General purpose and broker-dealer 167.5 176.5 208.0 221.1 228.9 229.6 230.8 230.9 17 Institution-only 62.7 64.5 84.4 89.6 86.3 84.8 84.0 83.7 Large-denomination time deposits11 18 Commercial Banks 270.2 284.9 288.9 323.5 334.2 341.2 347.0 352.4 19 Thrift institutions 146.8 151.6 150.3 161.2 167.5r 167.9 167.8 171.2 Debt components 70 Federal debt l,366.1r l,585.3r 1,805.8'" 1,956. K 2,031.7r 2,040.8 2,057.7 n.a. 21 Nonfederal debt 4,541.3' 5,131.5r 5,766.9' 6,323.2r 6,587.9r 6,634.8 6,680.4 n.a. Not seasonally adjusted 77 Ml 564.5 633.5 740.6 765.9 778.8 785.5 781.2 779.9 73 2,373.2 2,573.9 2,821.4 2,914.7 3,014.3r 3,030.4 3,030.9 3,030.0 74 M3 2,991.4 3,211.0 3,507.6 3,680.8 3,807.9r 3,832.2 3,844.7 3,850.8 75 3,532.7 3,841.4 4,152.3 4,345.1 4,505.6r 4,541.5 4,564.5 n.a. 26 5,901.1r 6,706.8' 7,556.6r 8,261.2r 8,586.9'' 8,640.4 8,695.1 n.a. Ml components 7.7 Currency 158.5 170.2 183.0 199.4 205.8 207.9 207.9 207.9 78 Travelers checks 4.9 5.5 6.0 6.5 7.6 8.2 8.2 7.9 7.9 Demand deposits5 253.0 276.9 314.4 298.5 291.0 292.6 288.7 287.0 30 Other checkable deposits 148.2 180.9 237.3 261.6 274.4 276.8 276.4 277.1 Nontransactions components 31 M2 1,808.7 1,940.3 2,080.7 2,148.8 2,235.6 2,244.9 2,249.7 2,250.1 32 M3 only8 618.2 637.1 686.2 766.1 793.5' 801.8 813.8 820.7 Money market deposit accounts 33 Commercial Banks 267.4 332.8 379.6 358.2 359.9 359.4 356.9 353.6 34 Thrift institutions 149.4 180.8 192.9 167.0 162.4 161.8 160.2 157.3 Savings deposits9 35 Commercial Banks 121.5 123.7 154.2 176.7 189.6 191.4 190.9 189.7 36 Thrift institutions 161.5 174.8 212.9 233.3 243.8 245.6 243.8 241.9 Small-denomination time deposits10 37 Commercial Banks 386.9 384.0 365.3 385.2 405.4 410.3 415.2 422.7 38 Thrift institutions 498.2 497.5 489.7 529.3 564.6 568.9 571.4 576.1 Money market mutual funds 39 General purpose and broker-dealer 167.5 176.5 208.0 221.1 228.9 229.6 230.8 230.9 40 Institution-only 62.7 64.5 84.4 89.6 86.3 84.8 84.0 83.7 Large-denomination time deposits" 41 Commercial Banks12 270.9 285.4 289.1 323.6 333.5' 338.4 346.3 352.4 42 Thrift institutions 146.8 151.9 150.7 161.8 166.4' 166.5 167.6 171.6 Debt components 43 Federal debt 1,364.7 1,583.7 1,803.9 1,954.1 2,014.9' 2,022.3 2,035.8 n.a. 44 Nonfederal debt 4,536.4' 5,123.1' 5,752.8' 6,307. r 6,572.0' 6,618.2 6,659.3 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 DomesticN onfinancial Statistics • December 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 Monetary and Reserves Projection market debt of the U.S. government, state and local governments, and private section, Division of Monetary Affairs, Board of Governors of the Federal Reserve nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- System, 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. 1988 Bank group, or type of customer 1985 19862 1987 Jan. Feb. Mar. Apr. May DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 156,091.6 188,345.8 217,115.9 213,270.8 221,057.3 218,986.7 213,971.5 224,052.3 230,198.8 2 Major New York City banks 70,585.8 91,397.3 104,496.3 98,733.8 104,568.3 101,161.0 100,695.1 109,714.7 111,402.1 3 Other banks 85,505.9 96,948.8 112,619.6 114,537.0 116,489.0 117,825.7 113,276.4 114,337.6 118,796.6 4 ATS-NOW accounts 1,823.5 2,182.5 2,402.7 2,352.7 2,730.3 2,856.8 2,557.9 2,664.9 2,786.0 5 Savings deposits 384.9 403.5 526.5 534.9 596.0 640.7 543.7 574.7 597.1 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 500.3 556.5 612.1 602.5 628.2 628.8 600.2 630.9 649.8 7 Major New York City banks 2,196.9 2,498.2 2,670.6 2,600.3 2,844.8 2,811.0 2,700.6 2,881.3 2,911.0 8 Other banks 305.7 321.2 357.0 362.5 369.7 377.3 354.9 360.6 376.0 9 ATS-NOW accounts4 15.8 15.6 13.8 13.0 14.9 15.5 13.8 14.2 14.8 10 Savings deposits 3.2 3.0 3.1 3.0 3.3 3.5 3.0 3.1 3.2 DEBITS TO Not seasonally adjusted Demand deposits 11 All insured banks 156,052.3 188,506.4 217,124.8 210,029.1 208,899.2 233,286.6 214,848.8 222,685.5 241,133.2 12 Major New York City banks 70,559.2 91,500.0 104,518.6 97,840.1 98,106.5 109,557.8 101,141.9 106,335.6 117,287.7 13 Other banks 85,493.1 97,006.6 112,606.1 112,189.0 110,792.7 123,728.8 113,706.9 116,349.9 123,845.5 14 ATS-NOW accounts4 1,826.4 2,184.6 2,404.8 2,565.2 2,468.6 2,825.0 2,745.3 2,601.3 2,851.4 15 MMDA® 1,223.9 1,609.4 1,954.2 2,305.6 2,102.8 2,337.5 2,372.8 2,341.0 2,557.1 16 Savings deposits3 385.3 404.1 526.8 552.5 526.3 616.5 603.2 566.4 598.3 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 499.9 556.7 612.3 578.7 610.5 684.3 601.8 638.6 679.5 18 Major New York City banks 2,196.3 2,499.1 2,674.9 2,430.3 2,664.6 3,005.7 2,706.2 2,895.6 3,121.4 19 Other banks 305.6 321.2 356.9 347.7 362.8 406.4 355.7 372.9 390.3 20 ATS-NOW accounts4 15.8 15.6 13.8 13.9 13.5 15.3 14.4 14.1 15.2 21 MMDA 4.0 4.5 5.3 6.5 5.9 6.5 6.6 6.6 7.2 22 Savings deposits 3.2 3.0 3.1 3.1 3.0 3.4 3.3 3.1 3.2 1. Historical tables containing revised data for earlier periods may be obtained of states and political subdivisions. from the Monetary and Reserves Projections Section, Division of Monetary 4. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. counts authorized for automatic transfer to demand deposits (ATS). ATS data are 20551. available beginning December 1978. These data also appear on the Board's G.6 (406) release. For address, see inside 5. Excludes Ala and NOW accounts, MMDA and special club accounts, such front cover. as Christmas and vacation clubs. 2. Annual averages of monthly figures. 6. Money market deposit accounts. 3. Represents accounts of individuals, partnerships, and corporations and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • December 1988 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1987r 1988r CCaatteeggoorryy Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted 1 Total loans and securities2 2,230.5 2,235.3 2,233.0 2,244.8 2,264.1 2,281.3 2,304.7 2,328.5 2,348.4 2,360.8 2,374.9 2,373.7 2 U.S. government securities 332.6 332.6 335.0 336.4 336.4 340.2 343.8 346.5 350.5 348.0 350.5 352.4 3 Other securities 193.2 195.1 194.5 192.0 193.7 195.7 196.6 196.1 196.5 196.8 196.4 194.3 4 Total loans and leases2 1,704.7 1,707.5 1,703.5 1,716.5 1,734.0 1,745.4 1,764.3 1,786.0 1,801.5 1,815.9 1,827.9 1,827.0 5 Commercial and industrial ..... 561.4 561.3 562.4 565.2 569.3 568.6 578.1 586.3 592.4 598.3 599.4 597.2 6 Bankers acceptances held ... 5.1 4.4 4.1 4.3 4.3 4.7 4.6 4.4 4.4 44..44 44..66 44..55 7 Other commercial and industrial 556.4 556.9 558.3 560.9 564.9 564.0 573.5 582.0 588.1 593.9 594.7 592.7 8 U.S. addressees4 548.4 549.4 550.2 552.2 556.3 555.8 565.5 575.1 581.3 587.4 588.4 586.4 9 Non-U.S. addressees 7.9 7.5 8.1 8.7 8.7 8.2 8.1 6.9 6.8 6.5 6.3 6.3 10 Real estate 573.7 581.2 588.4 593.7 599.2 604.9 611.3 618.6 625.0 631.4 638.7 644.7 11 Individual 324.6 326.3 327.8 329.8 333.0 337.0 340.4 342.8 344.4 345.3 347.0 349.1 12 Security 47.1 39.3 33.4 36.5 42.1 41.2 39.5 39.8 3399..33 3388..66 4400..11 3366..33 13 Nonbank financial institutions 31.6 31.8 31.8 32.0 32.4 31.8 30.9 31.4 31.1 31.6 31.4 30.5 14 Agricultural 29.6 29.5 29.5 29.6 29.5 29.3 29.4 29.6 29.6 2299..66 2299..44 2299..33 15 State and political subdivisions 54.5 54.1 52.2 51.7 51.0 50.1 49.5 49.3 49.2 50.2 4499..66 49.4 16 Foreign banks 9.1 8.2 7.5 7.6 7.4 7.8 8.3 8.0 7.9 8.2 88..11 7.4 17 Foreign official institutions 5.7 5.5 5.3 5.4 5.1 5.1 5.1 5.1 5.0 5.0 5.2 5.2 18 Lease financing receivables 24.0 24.6 24.6 25.1 25.3 25.4 25.7 26.0 26.5 27.2 27.3 27.8 19 All other loans 43.4 45.8 40.4 39.8 39.8 44.2 46.0 48.9 50.8 50.5 51.8 50.2 Not seasonally adjusted 20 Total loans and securities2 2,225.3 2,234.4 2,249.2 2,257.5 2,268.8 2,281.6 2,305.9 2,325.2 2,344.6 2,350.7 2,363.5 2,370.5 21 U.S. government securities 330.2 332.5 334.9 337.9 341.5 342.0 343.4 344.9 347.0 347.1 350.5 352.7 22 Other securities 192.2 194.5 195.0 194.6 194.4 195.3 196.2 196.1 196.0 195.5 196.3 194.4 23 Total loans and leases2 1,702.9 1,707.4 1,719.3 1,724.9 1,732.9 1,744.2 1,766.3 1,784.2 1,801.6 1,808.1 1,816.7 1,823.4 24 Commercial and industrial ..... 557.4 560.2 566.4 564.9 568.5 573.8 582.1 588.8 594.0 595.4 594.2 593.7 25 Bankers acceptances held ... 5.0 4.4 4.2 4.1 4.3 4.7 4.5 4.4 4.5 4.4 44..66 44..55 26 Other commercial and industrial 552.4 555.8 562.2 560.7 564.2 569.1 577.6 584.4 589.5 591.0 589.6 589.2 2/ U.S. addressees4 . 544.3 547.7 554.1 $52.8 556.0 561.2 569.7 577.3 582.6 584.0 582.9 582.6 28 Non-U.S. addressees 8.1 8.1 8.1 8.0 8.2 7.9 7.9 7.1 6.9 7.0 6.7 6.6 29 Real estate 574.3 581.7 589.3 594.1 598.5 604.1 610.3 618.1 624.8 631.5 638.7 645.5 30 Individual 326.1 328.0 332.1 333.3 332.4 333.9 337.4 339.9 342.3 343.8 347.1 350.8 31 Security 45.7 39.4 35.0 37.3 40.5 40.6 41.2 40.4 40.8 3388..22 3388..33 3355..33 32 Nonbank financial institutions 31.6 32.2 33.1 32.2 31.4 30.8 30.8 31.2 31.2 31.4 31.3 30.8 33 Agricultural 30.5 29.8 29.3 28.9 28.5 28.3 28.6 29.3 2299..99 3300..33 3300..33 3300..33 34 State and political subdivisions 53.6 53.1 52.2 53.5 52.2 51.0 50.0 49.3 48.9 49.5 49.0 48.6 35 Foreign banks 9.3 8.2 7.9 7.8 7.6 7.7 7.9 7.7 7.8 8.2 7.9 7.6 36 Foreign official institutions 5.7 5.5 5.3 5.4 5.1 5.1 5.1 5.1 5.0 5.0 5.2 5.2 37 Lease financing receivables 23.7 24.3 24.6 25.2 25.4 25.6 25.9 26.1 26.7 27.2 27.2 27.6 38 All other loahs 45.1 45.0 44.0 42.3 42.7 43.4 46.9 48.3 50.3 47.7 47.5 48.0 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 Source Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Total nondeposit funds 1 Seasonally adjusted 176.8 174.6 178.4 180.2 178.1 175.8 183.1 194.3r 194.8' 192.5' 196.6' 182.8 2 Not seasonally adjusted 176.8 176.9 179.3 180.6 180.7 176.6 182.2 194.1 191.r 188.5' 196.9" 183.4 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 165.2 166.7 163.2 171.1 175.0 178.9 181.1 184.5 186.1 181.7 177.9 173.7 4 Not seasonally adjusted 165.3 169.0 164.1 171.4 177.6 179.8 180.2 184.3 182.4 177.7 178.2 174.3 5 Net i b n a s l t a i n tu c t e i s o n d s u , e n t o o t f s o e r a e s i o g n n a - l r l e y l a a te d d ju sted — 11.6 7.9 15.2 9.1 3.1 -3.1 2.0 9.7' 8.7r 10.8' 18.7' 9.1 MEMO 6 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted -14.7 -17.1 -14.0 -16.5 -20.2 -25.3 -22.2 -16.5r -16.3' -14.0' -7.2' -15.6 7 Gross due from balances 67.7 70.4 69.5 71.2 72.9 76.6 72.9 69.7r 69.6' 70.3' 70.4' 74.8 8 Gross due to balances 53.0 53.3 55.5 54.7 52.7 51.4' 50.7 53.2' 53.3' 56.4' 63.1' 59.1 9 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted 26.3 24.9 29.2 25.6 23.3 22.1 24.2 26.2 25.0 24.8 26.0 24.7 10 Gross due from balances 79.7 83.2 79.8 85.2 87.3 88.6 88.3 89.9 93.6 94.1 93.9 89.6 11 Gross due to balances 106.0 108.2 109.0 110.9 110.6 110.7 112.4 116.1 118.6 118.9 119.8' 114.4 Security RP borrowings 12 Seasonally adjusted® 108.0 107.6 107.3 110.1 109.0 109.7 113.5 117.7 122.0 119.8 117.7 114.4 13 Not seasonally adjusted . 108.1 109.9 108.2 110.4 111.6 110.6 112.6 117.5 118.3 115.8 118.0 115.0 U.S. Treasury demand balances 14 Seasonally adjusted 34.2 35.7 26.1 18.6 22.6 24.9 21.8 24.7 22.0 20.2 15.8 24.5 15 Not seasonally adjusted 30.7 25.8 22.4 24.9 28.2 22.3 21.7 30.4 21.0 22.0 11.9 24.5 Time deposits, $100,000 or more* 16 Seasonally adjusted 380.5 387.0 389.2 389.1 394.4 396.1 394.0 396.4 400.5 406.7 413.4' 419.5 17 Not seasonally adjusted 380.4 387.0 389.3 390.1 394.7 398.2 393.9 397.1 399.8 403.9 412.8 419.5 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 Nonfinancial Statistics • December 1988 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series' Billions of dollars 1987 1988 AAccccoouunntt Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,390.8 2,429.0 2,417.6 2,427.7 2,450.0 2,466.8 2,473.2 2,511.7 2,509.0 2,523.3 2,523.2 2 Investment securities 508.5 514.7 515.7 514.9 517.7 519.7 521.6 518.6 521.6 525.4 525.9 3 U.S. government securities 318.8 323.6 325.5 325.0 325.7 328.8 330.7 328.0 331.6 334.6 336.3 4 Other 189.7 191.2 190.3 190.0 192.0 190.9 191.0 190.6 190.0 190.8 189.6 5 Trading account assets 20.3 16.9 18.2 21.9 20.3 19.6 20.3 22.1 23.9 22.8 21.3 6 Total loans 1,861.9 1,897.4 1,883.6 1,890.9 1,912.0 1,927.5 1,931.3 1,971.0 1,963.5 1,975.1 1,976.0 7 Interbank loans 159.2 168.1 159.0 161.4 159.5 158.0 152.3 163.7 158.7 154.7 151.2 8 Loans excluding interbank 1,702.7 1,729.3 1,724.6 1,729.5 1,752.4 1,769.5 1,779.1 1,807.3 1,804.8 1,820.4 1,824.9 9 Commercial and industrial 558.9 572.2 562.9 568.9 576.2 583.4 587.8 598.2 592.4 592.8 594.0 10 Real estate 582.7 593.7 595.2 599.2 607.3 612.5 619.7 627.5 633.1 641.8 647.8 11 Individual 328.5 334.1 332.9 332.7 334.8 339.1 340.0 343.2 344.1 349.2 351.6 12 All other 232.6 229.3 233.6 228.7 234.1 234.6 231.7 238.4 235.2 236.6 231.5 13 Total cash assets 217.2 236.2 213.4 207.4 211.2 214.3 200.3 221.4 217.0 221.8 215.9 14 Reserves with Federal Reserve Banks. 33.8 36.2 33.3 32.7 32.0 32.2 26.0 34.4 30.7 33.0 31.1 15 Cash in vault 24.0 28.4 25.7 25.1 24.8 25.4 25.4 26.5 25.9 26.5 26.2 16 Cash items in process of collection ... 76.2 80.1 70.8 66.9 74.1 76.4 71.5 77.2 75.7 79.9 76.4 17 Demand balances at U.S. depository institutions 32.6 36.2 31.7 30.4 32.0 30.3 29.2 31.6 31.3 31.5 29.4 18 Other cash assets 50.6 55.3 51.9 52.3 48.2 49.9 48.3 51.8 53.5 50.9 52.9 19 Other assets 190.3 191.6 181.5 180.9 193.1 190.9 186.6 194.3 188.4 187.5 191.7 20 Total assets/total liabilities and capital 2,798.3 2,856.8 2,812.5 2,816.0 2,854.3 2,871.9 2,860.2 2,927.5 2,914.4 2,932.6 2,930.9 21 Deposits 1,976.7 2,011.8 1,971.6 1,978.4 2,008.5 2,011.6 2,008.6 2,042.5 2,050.2 2,072.9 2,058.8 22 Transaction deposits 593.1 624.9 577.4 568.6 588.5 595.9 579.1 603.3 598.4 609.5 588.3 23 Savings deposits 531.4 527.9 531.6 535.7 540.0 536.4 542.2 544.5 545.4 542.2 536.9 24 Time deposits 852.2 859.0 862.6 874.1 879.9 879.3 887.3 894.7 906.4 921.2 933.6 25 Borrowings 424.5 432.8 452.1 450.8 454.9 465.8 458.4 487.4 470.7 452.4 471.2 26 Other liabilities 214.5 228.4 205.4 202.5 207.7 210.1 207.4 209.7 208.2 218.5 213.0 27 Residual (assets less liabilities) 182.7 183.7 183.5 184.4 183.2 184.4 185.8 187.8 185.3 188.7 187.8 MEMO 28 U.S. government securities (including trading account) 333.3 334.6 339.5 342.1 341.2 343.4 346.3 344.7 349.2 351.4 352.5 29 Other securities (including trading account) 195.6 197.0 194.5 194.7 196.8 195.9 195.6 196.0 196.4 196.7 194.6 DOMESTICALLY CHARTERED COMMERCIAL BANKS' 30 Loans and securities 2,221.1 2,245.1 2,240.5 2,246.3 2,266.0 2,282.3 2,286.4 2,314.6 2,319.3 2,330.5 2,329.6 31 Investment securities 483.8 489.7 489.1 488.6 491.7 494.6 495.7 492.8 495.3 499.3 501.0 32 U.S. Treasury securities 308.0 313.1 313.9 313.6 314.5 317.7 318.6 316.3 319.3 322.8 324.8 33 Other 175.8 176.6 175.2 175.0 177.2 176.9 177.1 176.6 176.1 176.5 176.1 34 Trading account assets 20.3 16.9 18.2 21.9 20.3 19.6 20.3 22.1 23.9 22.8 21.3 35 Total loans 1,716.9 1,738.5 1,733.1 1,735.8 1,754.0 1,768.1 1,770.4 1,799.7 1,800.1 1,808.5 1,807.3 36 Interbank loans 130.2 133.8 130.3 132.0 131.2 128.5 124.9 133.1 130.7 125.2 121.8 37 Loans excluding interbank 1,586.7 1,604.7 1,602.8 1,603.8 1,622.9 1,639.6 1,645.6 1,666.6 1,669.4 1,683.3 1,685.6 38 Commercial and industrial 472.1 479.2 472.7 475.8 481.0 487.4 488.8 492.6 490.8 489.7 489.3 39 Real estate 571.0 579.8 581.7 584.5 592.1 597.0 603.6 611.4 617.5 625.4 631.5 40 Individual 328.2 333.8 332.6 332.4 334.5 338.8 339.7 342.9 343.8 348.9 351.3 41 All other 215.4 211.9 215.9 211.1 215.3 216.4 213.5 219.7 217.3 219.2 213.5 42 Total cash assets 200.3 217.0 194.2 186.6 193.9 196.7 183.0 201.6 196.4 202.8 193.5 43 Reserves with Federal Reserve Banks. 31.5 35.0 31.7 30.5 30.1 30.7 23.6 32.9 29.5 31.4 29.0 44 Cash in vault 24.0 28.4 25.7 25.1 24.7 25.4 25.4 26.4 25.9 26.4 26.2 45 Cash items in process of collection ... 75.8 79.6 70.3 66.4 73.5 75.8 71.0 76.5 75.1 79.2 75.7 46 Demand balances at U.S. depository institutions 31.0 34.3 30.1 28.8 30.4 28.7 27.5 29.8 29.4 29.8 27.3 47 Other cash assets 38.0 39.7 36.5 35.8 35.2 36.0 35.6 35.8 36.5 36.0 35.3 48 Other assets 120.2 126.4 116.0 118.5 123.1 121.3 118.3 125.6 121.6 123.8 127.8 49 Total assets/liabilities and capital 2,541.6 2,588.5 2,550.6 2,551.4 2,583.0 2,600.3 2,587.7 2,641.8 2,637.4 2,657.2 2,650.9 50 Deposits 1,915.6 1,948.3 1,910.2 1,916.1 1,944.5 1,948.1 1,944.7 1,976.9 1,984.4 2,006.4 1,991.1 51 Transaction deposits 585.0 616.9 569.3 560.7 580.0 587.2 570.7 594.5 589.6 600.6 579.1 52 Savings deposits 529.1 525.6 529.3 533.3 537.6 533.9 539.8 541.8 542.9 539.7 534.4 53 Time deposits 801.5 805.8 811.6 822.0 826.9 827.0 834.2 840.6 851.9 866.1 877.6 54 Borrowings 326.9 337.5 351.7 349.9 350.1 358.4 351.7 369.4 358.5 345.7 359.0 55 Other liabilities 119.8 122.3 108.6 104.4 108.6 112.7 108.8 111.0 112.5 119.6 116.3 56 Residual (assets less liabilities) 179.3 180.5 180.2 181.1 179.9 181.1 182.4 184.5 182.0 185.4 184.5 MEMO4 57 Real estate loans, revolving 29.9 31.7 31.3 31.7 32.1 33.0 33.7 34.8 35.3 36.3 37.3 58 Real estate loans, other 541.1 548.2 550.4 552.9 560.0 564.0 569.9 576.6 582.2 589.2 594.2 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 Data have been revised because of benchmarking to new Call reports beginning commercial banks, branches and agencies of foreign banks, Edge Act and January 1987. Agreement corporations, and New York State foreign investment corporations. Figures are partly estimated. They include all bank-premises subsidiaries and 3. Insured domestically chartered commercial banks include all member banks other significant majority-owned domestic subsidiaries. Loan and securities data and insured nonmember banks. for domestically chartered commercial banks are estimates for the last Wednes- 4. Memorandum items for real estate loans; revolving and other, are shown as separate breakdowns for the first time. day of the month based on a sample of weekly reporting banks and quarter-end condition report data. Data for other banking institutions are estimates made for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1988 Account Aug. 3 Aug. 10 Aug. 17 Aug. 24' Aug. 31' Sept. 7 Sept. 14 Sept. 21 Sept. 28 1 Cash and balances due from depository institutions 105,475 97,008 105,681 96,737 106,736 111,668 108,944 107,388 103,545 2 Total loans, leases, and securities, net 1,130,152 1,134,849' 1,133,784 1,129,071 1,132,279 1,135,262 1,126,796 1,132,517 1,127,632 3 U.S. Treasury and government agency 129,989r 129,386' 131,488' 130,418 130,817 132,204 132,381 131,825 131,645 4 Trading account 16,331' 16,032' 17,928' 16,465 16,820 17,303 17,787 18,081 16,535 5 Investment account 113,659 113,355 113,560 113,954 113,997 114,901 114,594 113,744 115,110 6 Mortgage-backed securities2 42,793r 42,807' 42,860' 43,499 43,598 43,907 43,860 43,774 44,284 All other maturing in 7 One year or less 18,388 17,878 18,190 18,239 18,690 19,252 19,242 19,410 19,354 8 Over one through five years 44,055 44,220 43,777 43,481 42,882 42,461 42,472 41,607 42,478 9 Over five years 8,423r 8,449' 8,732' 8,734 8,827 9,281 9,021 8,953 8,994 10 Other securities 73,08 <r 72,876' 72,847' 72,419 72,724 72,273 72,311 72,201 72,581 11 Trading account 1,968' 1,825' 1,954' 1,662 1,722 1,455 1,480 1,499 1,833 12 Investment account 71,112 71,052 70,893 70,757 71,002 70,818 70,831 70,702 70,747 13 States and political subdivisions, by maturity 47,236 47,245 47,163 47,165 46,890 46,732 46,704 46,581 46,563 14 One year or less 5,331 5,326 5,324 5,345 5,430 5,468 5,475 5,463 5,454 15 Over one year 41,904 41,919 41,840 41,820 41,460 41,263 41,229 41,117 41,109 16 Other bonds, corporate stocks, and securities 23,876 23,806 23,730 23,591 24,112 24,087 24,127 24,121 24,184 17 Other trading account assets 4,599 4,582 4,265 4,046 4,214 4,095 3,319 2,977 3,356 18 Federal funds sold3 70,839 75,482 71,778 69,314 68,535 72,465 65,755 71,772 67,399 19 To commercial banks 42,175 46,078 44,009 44,517 41,892 45,704 41,619 47,479 44,916 20 To nonbank brokers and dealers in securities 19,698 19,468 18,037 16,329 18,063 16,899 15,230 15,132 13,792 21 Toothers 8,966 9,935' 9,732 8,467 8,580 9,862 8,906 9,161 8,692 22 Other loans and leases, gross 892,122' 893,113' 894,011' 893,400 896,587 894,896 893,656 894,349 893,220 23 Other loans, gross 869,568r 870,696' 871,508' 870,833 874,035 872,186 870,856 871,527 870,187 24 Commercial and industrial 299,944r 300,338' 298,069' 296,769 296,776 296,918 296,535 297,267 296,548 25 Bankers acceptances and commercial paper 2,011 1,985 2,008' 1,882 1,897 2,000 1,825 1,776 1,711 26 All other 297,933' 298,353' 296,060' 294,888 294,879 294,917 294,710 295,491 294,837 27 U.S. addressees 295,435' 295,858' 293,615' 292,436 292,378 292,382 292,236 293,048 292,485 28 Non-U.S. addressees 2,498 2,495 2,445 2,452 2,500 2,535 2,474 2,444 2,352 29 Real estate loans 284,354 285,503 286,925' 287,644 288,289 288,450 289,542 290,584 290,916 30 Revolving, home equity 19,494 19,614 19,754 19,856 20,001 20,080 20,225 20,468 20,511 31 All other 264,860 265,889 267,170' 267,788 268,288 268,370 269,316 270,116 270,405 32 To individuals for personal expenditures 162,149' 162,415' 162,929' 163,372 164,050 163,994 164,545 164,790 165,198 33 To depository and financial institutions 52,128 51,769 52,219' 52,469 51,941 51,689 49,843 48,462 46,889 34 Commercial banks in the United States 25,424 24,290 24,832 25,561 25,236 24,330 23,286 21,884 21,166 35 Banks in foreign countries 4,002 4,517 4,562' 4,803 4,286 4,456 3,875 4,246 3,864 36 Nonbank depository and other financial institutions 22,702 22,962 22,825 22,106 22,419 22,903 22,681 22,332 21,859 37 For purchasing and carrying securities 12,065 12,173 12,604 12,404 13,667 12,254 12,605 12,410 12,745 38 To finance agricultural production 5,599' 5,574' 5,598' 5,611 5,636 5,534 5,562 5,593 5,555 39 To states and political subdivisions 30,200' 30,070' 30,088' 30,015 30,037 29,930 29,865 29,830 29,727 40 To foreign governments and official institutions ... 2,068 1,867 1,863 2,132 2,081 2,027 1,931 2,023 2,216 41 All other 21,060 20,986 21,214' 20,415 21,557 21,389 20,427 20,567 20,393 42 Lease financing receivables 22,554' 22,417' 22,503' 22,567 22,552 22,710 22,801 22,822 23,033 43 LESS: Unearned income 4,814' 4,849' 4,871' 4,878 4,871 4,894 4,924 4,942 4,947 44 Loan and lease reserve 35,664 35,742 35,735 35,649 35,727 35,777 35,701 35,664 35,622 45 Other loans and leases, net 851,644 852,522' 853,405 852,874 855,989 854,225 853,031 853,742 852,652 46 All other assets 124,830 124,272' 121,592 121,202 123,894 125,150 128,477 128,445 127,142 47 Total assets 1,360,457 1,356,129 1,361,056 1,347,010 1,362,909 1,372,080 1,364,218 1,368,350 1,358,319 48 Demand deposits 231,916 220,973 229,969 215,596 229,546 235,528 228,724 216,064 221,612 49 Individuals, partnerships, and corporations 181,118' 176,530' 183,640' 170,220 184,153 185.481 183,247 172,662 174,349 50 States and political subdivisions 6,590 5,482 5,780 5,878 6,157 6,078 5,814 6,345 5,775 51 U.S. government 5,141 2,687 1,549 3,091 1,656 1,501 3,514 1,603 2,070 52 Depository institutions in the United States 23,121' 20,920' 22,312' 20,984 21,771 25,346 21,396 19,831 20,730 53 Banks in foreign countries 6,246 6,377 7,031 6,130 7,169 7,722 6,037 6,639 6,373 54 Foreign governments and official institutions 801 700 786 791 695 651 690 702 713 55 Certified and officers' checks 8,899 8,278 8,869 8,501 7,945 8,749 8,026 8,283 11,601 56 Transaction balances other than demand deposits 74,354 73,376 72,949 71,959 73,553 75,362 73,873 71,506 70,224 57 Nontransaction balances 605,876 607,036 607,137 608,571 609,987 611,997 613,259 612,108 612,124 58 Individuals, partnerships, and corporations 566,518 567,482 567,237' 568,224 569,728 571,826 572,999 572,247 572,271 59 States and political subdivisions 29,039 29,102 29,510 29,876 29,739 29,899 29,959 29,607 29,855 60 U.S. government 1,055 1,060 1,007 985 987 890 884 883 893 61 Depository institutions in the United States 8,454 8,573 8,569' 8,670 8,716 8,580 8,600 8,550 8,251 62 Foreign governments, official institutions, and banks 810 818 813 816 818 802 817 821 854 63 Liabilities for borrowed money 267,562 272,765 268,587 266,123 264,419 270,439 266,716 287,568 272,023 64 Borrowings from Federal Reserve Banks 2,314 2,450 2,725 2,663 2,600 2,450 2,350 6,681 2,000 65 Treasury tax-and-loan notes y 4,344 2,580 5,048 5,855 6,750 5,938 9,084 25,603 25,215 66 All other liabilities for borrowed money 260,903 267,735 260,814 257,604 255,068 262,051 255,282 255,285 244,808 67 Other liabilities and subordinated notes and debentures 90,033 91,038 91,385 93,411 93,682 86,986 89,362 88,719 90,211 68 Total liabilities 1,269,741 1,265,188 1,270,028 1,255,659 1,271,187 1,280,312 1,271,934 1,275,966 1,266,195 69 Residual (total assets minus total liabilities)6 90,716 90,941 91,028 91,351 91,722 91,768 92,284 92,384 92,125 MEMO 70 Total loans and leases (gross) and investments adjusted' 1,103,03c 1,105,072' 1,105,549' 1,099,520 1,105,748 1,105,899 1,102,516 1,103,761 1,102,119 71 Total loans and leases (gross) adjusted7 895,362' 898,227' 896,948' 892,636 897,993 897,326 894,506 896,759 894,538 72 Time deposits in amounts of $100,000 or more 186,759' 188,169' 188,233' 189,719 190,976 191,451 192,410 193,124 192,892 73 U.S. Treasury securities maturing in one year or less .. 17,296 17,139 18,489 17,750 19,422 19,827 19,831 20,387 18,708 74 Loans sold outright to affiliates—total8 1,373 1,387 1,413' 1,245 1,289 1,442 1,339 1,307 1,386 75 Commercial and industrial 918 933 965 798 843 9% 893 866 946 76 Other 454 454 448' 448 446 446 446 441 441 77 Nontransaction savings deposits (including MMDAs)... 254,354' 253,958' 253,552' 252,534 252,236 253,024 251,895 249,542 248,934 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 DomesticN onfinancial Statistics • December 1988 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1988 AAccccoouunntt Aug. 3 Aug. 10 Aug. 17 Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 1 Cash balances due from depository institutions 22,272 21,024 23,592 21,663 21,672 23,295 25,567 24,973 25,240 2 Total loans, leases and securities, net2 217,880 220,101r 218,896 215,940 217,470 216,669 214,186 218,003 213,331 Securities 3 U.S. Treasury and government agency 0 0 0 0 0 0 0 0 0 4 Trading account3 0 0 0 0 0 0 0 0 0 5 Investment account 14,701 14,582 14,646 14,618 14,615 15,240 14,943 15,253 15,399 6 Mortgage-backed securities4 5,551 5,548 5,681 5,717 5,662 5,663 5,662 5,728 5,906 All other maturing in 7 One year or less 2,366 2,236 2,290 2,289 2,274 2,527 2,446 2,605 2,656 8 Over one through five years 4,809 4,821 4,707 4,660 4,664 4,674 4,762 4,873 4,760 9 Over five years 1,974 1,976 1,969 1,951 2,015 2,376 2,073 2,046 2,076 10 Other securities3 0 0 0 0 0 0 0 0 0 11 Trading account 0 0 0 0 0 0 0 0 0 12 Investment account 16,648 16,663 16,580 16,438 16,665 16,739 16,802 16,796 16,855 13 States and political subdivisions, by maturity 12,821 12,815 12,857 12,759 12,770 12,755 12,750 12,722 12,728 14 One year or less 1,121 1,124 1,118 1,125 1,127 1,210 1,218 1,223 1,230 15 Over one year 11,700 11,691 11,739 11,634 11,643 11,545 11,533 11,499 11,497 16 Other bonds, corporate stocks, and securities 3,827 3,849 3,722 3,679 3,895 3,984 4,052 4,073 4,127 17 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold 29,998 31,606 31,265 28,995 28,923 28,430 26,723 30,548 26,444 19 To commercial banks 13,227 14,050 14,357 14,137 13,116 11,689 11,553 15,752 12,850 20 To nonbank brokers and dealers in securities 10,936 10,894 10,374 9,231 10,180 9,610 8,932 8,794 7,722 21 To others 5,834 6,662 6,534 5,627 5,626 7,131 6,239 6,001 5,871 22 Other loans and leases, gross 171,519 172,335r 171,445 170,946 172,362 171,403 170,880 170,548 169,776 23 Other loans, gross 166,032 166,98 V 166,038 165,524 166,924 165,962 165,381 165,044 164,267 24 Commercial and industrial 57,672 58,474' 56,899 55,748 56,268 56,624 56,923 56,756 56,648 25 Bankers acceptances and commercial paper 390 405 418 393 444 457 409 390 355 26 All other 57,283 58,07(r 56,480 55,354 55,825 56,167 56,514 56,366 56,293 27 U.S. addressees 56,850 57,641r 56,071 54,908 55,360 55,698 56,113 55,964 55,884 28 Non-U.S. addressees 433 429 409 447 465 468 401 402 409 29 Real estate loans 47,797 47,947 48,380 48,805 48,874 48,757 48,728 48,911 48,842 30 Revolving, home equity 3,076 3,097 3,109 3,119 3,135 3,138 3,158 3,187 3,098 31 All other 44,721 44,849 45,271 45,686 45,739 45,619 45,571 45,724 45,743 32 To individuals for personal expenditures 20,945 20,980 21,067 20,898 20,986 21,038 21,143 21,233 21,334 33 To depository and financial institutions 21,622 21,324 21,710 22,269 21,338 21,438 20,783 20,342 19,430 34 Commercial banks in the United States 12.930 11,970 12,318 13,084 12,498 12,192 12,175 11,413 11,217 35 Banks in foreign countries 2,148 2,646 2,742 2,889 2,520 2,734 2,197 2,629 2,208 36 Nonbank depository and other financial institutions 6,544 6,708 6,650 6,295 6,320 6,512 6,411 6,300 6,005 37 For purchasing and carrying securities 4,860 4,786 5,036 4,777 5,782 4,488 4,872 4,578 4,866 38 To finance agricultural production 201 188 201 210 215 188 188 215 200 39 To states and political subdivisions 6,704 6,762 6,748 6,737 6,727 6,738 6,711 6,713 6,688 40 To foreign governments and official institutions 711 504 482 754 707 668 576 671 711 41 All other 5,519 6,015 5,514 5,327 6,026 6,022 5,455 5,624 5,546 42 Lease financing receivables 5,487 5,354 5,407 5,421 5,439 5,442 5,499 5,504 5,509 43 LESS: Unearned income 1,528 1,550 1,567 1,579 1,572 1,582 1,597 1,610 1,630 44 Loan and lease reserve 13,457 13,536 13,473 13,477 13,524 13,562 13,565 13,531 13,513 45 Other loans and leases, net6 156,534 157,249' 156,404 155,889 157,266 156,260 155,718 155,406 154,633 46 All other assets7 56,457 55,934r 57,095 55,243 56,265 56,603 56,731 57,978 57,999 47 Total assets 296,610 297,059 299,583 292,846 295,407 296,567 296,485 300,954 296,570 Deposits 48 Demand deposits 53,406 52,778 56,444 52,250 54,954 54,811 53,682 52,054 55,992 49 Individuals, partnerships, and corporations 36,819 37,176 39,266 35,875 39,495 37,993 38,866 36,707 37,151 50 States and political subdivisions 739 530 577 690 586 655 621 592 550 51 U.S. government 1,025 471 215 583 173 192 560 184 357 52 Depository institutions in the United States 5,795 5,319 6,175 5,862 5,612 5,571 5,306 5,028 5,668 53 Banks in foreign countries 4,928 5,248 5,874 5,019 6,052 6,491 4,962 5,478 5,1% 54 Foreign governments and official institutions 659 563 648 638 527 518 556 563 534 55 Certified and officers' checks 3,442 3,470 3,688 3,582 2,508 3,389 22,,880099 33,,550022 6,535 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,802 8,662 8,665 8,468 8,599 8,765 8,736 8,457 8,335 57 Nontransaction balances 107,056 105,989 105,741 106,185 106,131 106,374 105,746 106,079 106,425 58 Individuals, partnerships, and corporations 97,829 96,887 96,515 96,928 96,772 97,082 96,567 97,016 97,138 59 States and political subdivisions 7,007 6,880 7,003 6,976 6,942 6,964 6,969 6,886 7,125 60 U.S. government 30 35 41 39 29 28 30 30 30 61 Depository institutions in the United States 1,881 1,874 1,873 1,929 2,066 1,986 1,869 1,827 1,814 62 Foreign governments, official institutions, and banks 309 313 309 312 321 314 312 320 318 63 Liabilities for borrowed money 65,400 67,426 65,985 62,670 60,242 66,893 66,498 72,600 64,434 64 Borrowings from Federal Reserve Banks 0 0 0 0 0 0 0 3,100 0 65 Treasury tax-and-loan notes 1,139 547 1,520 1,858 2,034 1,648 2,799 7,212 7,213 66 All other liabilities for borrowed money 64,261 66,879 64,465 60,811 58,208 65,246 63,699 62,288 57,222 67 Other liabilities and subordinated notes and debentures 35,934 36,219 36,684 37,148 39,327 33,408 35,294 35,184 35,083 68 Total liabilities 270,600 271,073 273,520 266,721 269,252 270,251 269,957 274,375 270,270 69 Residual (total assets minus total liabilities)9 26,010 25,986 26,063 26,125 26,154 26,316 26,528 26,579 26,300 MEMO 70 Total loans and leases (gross) and investments adjusted2'10 206,708 209,167' 207,262 203,775 206,951 207,931 205,620 205,979 204,406 71 Total loans and leases (gross) adjusted 175,359 177,92K 176,035 172,720 175,671 175,952 173,875 173,930 172,152 72 Time deposits in amounts of $100,000 or more 38,882 38,394 38,260 38,491 38,341 38,527 38,268 38,901 38,889 73 U.S. Treasury securities maturing in one year or less 3,090 3,119 4,012 3,570 4,538 4,590 4,199 4,415 3,978 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. Digitized for FinR pAooSlsE oRf residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commerhttp://fraser.stlo5u. iIsnfceludd.eos rsge/c urities purchased under agreements to resell. cial banks. 6. Includes allocated transfer risk reserve. Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS' Assets and Liabilities Millions of dollars, Wednesday figures 1988 AAccccoouunntt Aug. 3' Aug. 10r Aug. 17' Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 1 Cash and due from depository institutions ... 10,749 10,635 10,640 10,989 10,745 11,243 10,579 11,571 11,330 2 Total loans and securities 106,167 108,733 110,121 107,889' 108,343' 108,483 106,462 108,808 108,378 3 U.S. Treasury and government agency securities 8,373 8,469 8,731 8,197' 88,,007755'' 88,,005500 88,,113300 88,,224466 77,,889922 4 Other securities 7,483 7,462 7,400 7,40C 7,719' 7,302 7,309 7,253 7,147 5 Federal funds sold2 7,420 8,956 9,643 9,295 8,785 9,309 7,131 8,712 7,463 6 To commercial banks in the United States. 5,159 6,177 7,440 6,967 6,726 7,095 4,876 6,457 4,842 7 To others 2,261 2,778 2,204 2,328 2,058 2,214 2,255 2,255 2,621 8 Other loans, gross 82,890 83,847 84,346 82,998r 83,765' 83,822 83,892 84,596 85,876 9 Commercial and industrial 55,647 56,760 57,065 56,076' 56,477' 56,567 56,394 56,508 56,903 10 Bankers acceptances and commercial paper 1,840 1,807 1,844 l,996r 2,036' 1,932 1,890 11,,991155 11,,889988 U All other 53,806 54,953 55,221 54,08<r 54,440' 54,636 54,504 54,594 55,005 12 U.S. addressees 51,879 53,108 53,235 52,214' 52,475' 52,676 52,589 52,841 53,184 13 Non-U.S. addressees 1,927 1,844 1,986 1,866 1,965 1,960 1,915 1,752 1,822 14 To financial institutions 15,070 15,247 15,101 15,153 15,324 15,441 15,820 16,147 16,879 15 Commercial banks in the United States.. 11,040 11,321 10,800 11,073 11,149 11,266 11,995 12,288 12,905 16 Banks in foreign countries 843 816 891 900 824 1,021 866 877 923 17 Nonbank financial institutions 3,188 3,110 3,410 3,180 3,351 3,154 2,959 2,981 3,052 18 To foreign governments and official institutions 643 665 754 660 663399 646 664444 667777 663388 19 For purchasing and carrying securities — 1,730 1,261 1,396 1,365 1,265 1,275 1,189 1,445 1,481 20 All other 9,800 9,913 10,030 9,743' 10,06c 9,892 9,844 9,819 9,974 21 Other assets (claims on nonrelated parties) .. 31,547 31,108 31,654 30,987' 31,556' 31,123 30,782 30,984 31,268 22 Net due from related institutions 16,974 15,325 15,661 16,671 13,836 16,084 15,076 18,884 15,910 23 Total assets 165,437 165,801 168,075 166,537r 164,480' 166,933 162,899 170,246 166,886 24 Deposits or credit balances due to other than directly related institutions —.. 43,677 43,382 43,171 43,118 42,506 42,876 42,884 4433,,663366 4433,,446600 25 Transaction accounts and credit balances3. 4,225 3,622 3,539 3,374 3,352 3,592 3,735 4,155 3,697 26 Individuals, partnerships, and corporations 2,538 2,289 2,300 2,205' 2,169' 2,182 22,,550099 22,,446644 22,,554400 27 Other 1,686 1,334 1,239 l,17(r 1,183' 1,410 1,226 1,690 1,157 28 Nontransaction accounts 39,452 39,759 39,632 39,743 39,153 39,284 39,150 39,481 39,764 29 Individuals, partnerships, and corporations 32,087 32,526 32,268 32,346 32,037 32,240 3322,,113388 3322,,338877 3322,,883300 30 Other 7,366 7,233 7,363 7,397 7,116 7,044 7,011 7,094 6,933 31 Borrowings from other than directly related institutions 66,570 66,390 66,030 66,821 63,316 6688,,113344 64,854 7711,,333333 6666,,880055 32 Federal funds purchased 28,503 28,523 29,585 29,957 24,961 31,781 29,253 35,008 31,728 33 From commercial banks in the United States 12,989 15,250 14,771 14,001' 10,777' 16,553 13,743 1188,,559999 1166,,446655 34 From others 15,515 13,274 14,814 15,956' 14,184' 15,228 15,509 16,409 15,262 35 Other liabilities for borrowed money 38,066 37,867 36,445 36,864 38,355 36,353 35,601 36,325 35,077 36 To commercial banks in the United States 27,508 27,163 26,046 26,684 27,533 25,757 25,390 25,343 24,228 37 To others 10,558 10,704 10,399 10,180 10,822 10,596 10,211 10,982 10,850 38 Other liabilities to nonrelated parties 33,159 32,980 33,458 32,484' 32,905' 32,663 32,415 32,138 32,488 39 Net due to related institutions 22,030 23,049 25,417 24,114 25,754r 23,261 22,746 23,139 24,132 40 Total liabilities 165,437 165,801 168,075 166,537' 164,48C 166,933 162,899 170,246 166,886 MEMO 41 Total loans (gross) and securities adjusted6 .. 89,968 91,235 91,881 89,849' 90,468' 90,122 89,591 90,062 90,631 42 Total loans (gross) adjusted 74,112 75,304 75,750 74,252' 74,674' 74,769 74,152 74,563 75,592 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 • December 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 1987 1988 11998833 11998844 11998866 DDeecc.. DDeecc.. iiSSffrr DDeecc.. Mar. June Sept. Dec. Mar. June 1 AH holders—Individuals, partnerships, and corporations 293.5 302.7 321.0 363.6 335.9 340.2 339.0 343.5 328.6 346.5 2 Financial business 32.8 31.7 32.3 41.4 35.9 36.6 36.5 36.3 33.9 37.2 3 Nonfinancial business 161.1 166.3 178.5 202.0 183.0 187.2 188.2 191.9 184.1 194.3 4 Consumer 78.5 81.5 85.5 91.1 88.9 90.1 88.7 90.0 86.9 89.8 5 Foreign 3.3 3.6 3.5 3.3 2.9 3.2 3.2 3.4 3.5 3.4 6 Other 17.8 19.7 21.2 25.8 25.2 23.1 22.4 21.9 20.3 21.9 Weekly reporting banks 1987 1988 11998833 11998844 11998866 DDeecc.. DDeecc..22 DDeecc..33''44 DDeecc.. Mar. June Sept. Dec. Mar.5 June 7 All holders—Individuals, partnerships, and corporations 146.2 157.1 168.6 195.1 178.1 179.3 179.1 183.8 181.8 191.5 8 Financial business 24.2 25.3 25.9 32.5 28.7 29.3 29.3 28.6 27.0 30.0 9 Nonfinancial business 79.8 87.1 94.5 106.4 94.4 94.8 96.0 100.0 98.2 103.1 10 Consumer 29.7 30.5 33.2 37.5 36.8 37.5 37.2 39.1 41.7 42.3 11 Foreign 3.1 3.4 3.1 3.3 2.8 3.1 3.1 3.3 3.4 3.3 12 Other 9.3 10.9 12.0 15.4 15.5 14.6 13.5 12.7 11.4 12.8 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 1988 11998833 11998844 11998855 11998866 11998877 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. Apr. May June July Aug. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers. 187,658 237,586 298,779 329,991 357,129 391,305 406,484 414,312 417,788 423,599 426,685 Financial companies1 Dealer-placed paper- 2 Total 44,455 56,485 78,443 101,072 101,958 128,680 133,946 137,838 142,322 148,125 148,224 3 Bank-related (not seasonally adjusted) 2,441 2,035 1,602 2,265 1,428 1,371 1,093 1,422 1,448 1,340 983 Directly placed paper 4 Total 97,042 110,543 135,320 151,820 173,939 173,316 180,119 185,876 184,658 185,063 187,305 5 Bank-related (not seasonally adjusted) 35,566 42,105 44,778 40,860 43,173 43,681 45,703 47,719 45,294 44,975 47,818 6 Nonfinancial companies 46,161 70,558 85,016 77,099 81,232 89,309 92,419 90,598 90,808 90,411 91,156 Bankers dollar acceptances (not seasonally adjusted)5 7 Total 78,309 78,364 68,413 64,974 70,565 63,454 64,111 63,381 64,359 63,240 64,036 Holder 8 Accepting banks 9,355 9,811 11,197 13,423 10,943 10,243 10,295 9,412 9,734 9,655 9,661 9 Own bills 8,125 8,621 9,471 11,707 9,464 8,825 8,929 8,588 8,861 8,702 8,664 10 Bills bought 1,230 1,191 1,726 1,716 1,479 1,417 1,366 825 873 953 888 Federal Reserve Banks 11 Own account 418 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents. 729 671 937 1,317 965 795 803 1,050 1,273 1,114 9,915 13 Others 67,807 67,881 56,279 50,234 58,658 52,417 53,013 52,918 53,351 52,471 53,493 Basis 14 Imports into United States.. 15,649 17,845 15,147 14,670 16,483 14,575 14,735 14,045 14,244 14,001 14,608 15 Exports from United States . 16,880 16,305 13,204 12,960 15,227 13,899 14,724 14,534 14,606 14,676 14,345 16 All other 45,781 44,214 40,062 37,344 38,855 34,980 34,652 34,803 35,510 34,564 35,083 1. Institutions engaged primarily in activities such as, but not limited to, 4. Includes public utilities and firms engaged primarily in such activities as commercial savings, and mortgage banking; sales, personal, and mortgage fi- communications, construction, manufacturing, mining, wholesale and retail trade, nancing; factoring, finance leasing, and other business lending; insurance under- transportation, and services. writing; and other investment activities. 5. Beginning January 1988, the number of respondents in the bankers accep- 2. Includes all financial company paper sold by dealers in the open market. tance survey were reduced from 155 to 111 institutions—those with $100 million 3. As reported by financial companies that place their paper directly with or more in total acceptances. The new reporting group accounts for over 90 investors. percent of total acceptances activity. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Rate Month Av r e a r te a ge Month Av r e a r te a ge Month 1985—Jan. 15 10.50 1985 —Jan. 10.61 1986 —July 8.16 1988 —Jan. May 20 10.00 Feb. 10.50 7.90 Feb. June 18 9.50 Mar. 10.50 Sept 7.50 Mar. Apr. 10.50 Oct 7.50 Apr. 1986—Mar. 7 9.00 May 10.31 Nov 7.50 May Apr. 21 8.50 June 9.78 Dec 7.50 June July 11 8.00 July 9.50 July Aug. 26 7.50 Aug. 9.50 1987 7.50 Aug. Sept. 9.50 Feb 7.50 Sept. 1987—Apr. 1 7.75 Oct. 9.50 7.50 May 1 8.00 Nov. 9.50 7.75 15 8.25 Dec. 9.50 8.14 Sept. 4 8.75 8.25 Oct. 7 9.25 1986 —Jan. 9.50 July 8.25 22 9.00 Feb. 9.50 Aug 8.25 Nov. 5 8.75 Mar. 9.10 Sept 8.70 Apr. 8.83 Oct 9.07 1988—Feb. 2 8.50 May 8.50 Nov 8.78 May 11 9.00 June 8.50 Dec 8.75 July 14 9.50 Aug. 11 10.00 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 • December 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 Instrument 1706 198/ June July Aug. Sept. Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 MONEY MARKET RATES 1 Federal funds1-2 8.10 6.80 6.66 7.51 7.75 8.01 8.19 8.15 8.15 8.13 8.17 8.24 2 Discount window borrowing1 7.69 6.32 5.66 6.00 6.00 6.37 6.50 6.50 6.50 6.50 6.50 6.50 Commercial paper 1 3 1-month 7.93 6.61 6.74 7.41 7.72 8.09 8.09 8.20 8.09 8.05 8.03 8.13 4 3-month 7.95 6.49 6.82 7.49 7.82 8.26 8.17 8.36 8.19 8.13 8.10 8.18 5 6-month 8.00 6.39 6.85 7.53 7.90 8.36 8.23 8.48 8.26 8.19 8.15 8.24 Finance paper, directly placed ' 6 1-month 7.90 6.57 6.61 7.23 7.62 7.96 7.% 7.94 7.91 7.89 7.92 8.09 7 3-month 7.77 6.38 6.54 7.25 7.55 7.95 7.95 8.07 7.90 7.91 7.90 8.04 8 6-month 7.74 6.31 6.37 7.01 7.19 7.57 7.71 7.69 7.69 7.69 7.71 7.76 Bankers acceptances ,6 9 3-month 7.91 6.38 6.75 7.38 7.77 8.19 8.06 8.24 8.09 8.04 7.99 8.09 10 6-month 7.95 6.28 6.78 7.41 7.85 8.30 8.15 8.38 8.18 8.12 8.07 8.17 Certificates of deposit, secondary market 11 1-month 7.96 6.61 6.75 7.41 7.73 8.08 8.12 8.18 8.13 8.10 8.06 8.14 12 3-month 8.04 6.51 6.87 7.51 7.94 8.35 8.23 8.41 8.26 8.19 8.16 8.24 13 6-month 8.24 6.50 7.01 7.69 8.18 8.66 8.50 8.78 8.53 8.44 8.43 8.50 14 Eurodollar deposits. 3-month8 8.28 6.71 7.06 7.61 8.09 8.47 8.31 8.56 8.39 8.28 8.20 8.28 U.S. Treasury bills' Secondary market 3-month 7.47 5.97 5.78 6.46 6.73 7.06 7.24 7.28 7.30 7.18 7.19 7.30 6-month 7.65 6.02 6.03 6.71 6.99 7.39 7.43 7.47 7.42 7.38 7.39 7.51 1-year . LW 7.81 6.07 6.33 6.99 7.22 7.59 7.53 7.65 7.52 7.45 7.51 7.60 Auction average" 3-month 7.47 5.98 5.82 6.50 6.73 7.02 7.23 7.26 7.26 7.21 7.17 7.23 6-month 7.64 6.03 6.05 6.76 6.97 7.36 7.43 7.50 7.40 7.41 7.34 7.48 1-year 7.80 6.18 6.33 7.08 7.04 7.40 7.60 7.72 n.a. n.a. n.a. 7.48 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 8.42 6.45 6.77 7.49 7.75 8.17 8.09 8.24 8.09 8.01 8.07 8.18 22 2-year 9.27 6.86 7.42 8.03 8.28 8.63 8.46 8.66 8.45 8.40 8.44 8.52 23 3-year 9.64 7.06 7.68 8.22 8.44 8.77 8.57 8.79 8.56 8.52 8.54 8.62 24 5-year 10.12 7.30 7.94 8.49 8.66 8.94 8.69 8.92 8.68 8.64 8.67 8.73 25 7-year 10.50 7.54 8.23 8.78 8.91 9.13 8.87 9.10 8.86 8.81 8.85 8.90 26 10-year 10.62 7.67 8.39 8.92 9.06 9.26 8.98 9.21 8.98 8.93 8.96 8.99 27 20-year 10.97 7.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 30-year 10.79 7.78 8.59 9.00 9.14 9.32 9.06 9.27 9.03 9.00 9.05 9.08 Composite13 29 Over 10 years (long-term) .. 10.75 8.14 8.64 9.04 9.20 9.33 9.06 9.26 9.03 9.02 9.06 9.09 State and local notes and botids Moody's series 30 Aaa 8.60 6.95 7.14 7.51 7.50 7.51 7.39 7.55 7.45 7.38 7.30 7.29 31 Baa 9.58 7.76 8.17 7.86 7.86 7.89 7.84 7.95 7.90 7.78 7.80 7.78 32 Bond Buyer series'- 9.11 7.32 7.64 7.78 7.76 7.79 7.66 7.76 7.67 7.59 7.62 7.64 Corporate bonds Seasoned issues16 33 All industries 12.05 9.71 9.91 10.36 10.47 10.58 10.28 10.58 10.45 10.34 10.18 10.08 34 Aaa '. 11.37 9.02 9.38 9.86 9.96 10.11 9.82 10.14 9.95 9.84 9.73 9.67 35 Aa 11.82 9.47 9.68 10.13 10.26 10.37 10.06 10.38 10.22 10.10 9.97 9.88 36 A 12.28 9.95 9.99 10.42 10.55 10.63 10.34 10.61 10.49 10.40 10,25 10.15 37 Baa 12.72 10.39 10.58 11.00 11.11 11.21 10.90 11.21 11.13 11.02 10.78 10.59 38 A-rated, recently offered utility bonds 12.06 9.61 9.95 10.41 10.40 10.45 10.26 10.30 10.22 10.21 10.31 10.29 MEMO: Dividend/price ratio18 39 Preferred stocks 10.44 8.76 8.37 9.32 9.34 9.39 9.25 9.46 9.38 9.34 9.25 9.15 40 Common stocks 4.25 3.48 3.08 3.58 3.65 3.75 3.69 3.78 3.72 3.67 3.66 3.69 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 1988 IInnddiiccaattoorr 11998855 11998866 11998877 Jan. Feb. Mar. Apr. May June July Aug. Sept. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 108.09 136.00 161.70 140.55 145.13 149.88 148.46 144.99 152.72 152.12 149.25 151.47 2 Industrial 123.79 155.85 195.31 168.47 173.44 181.57 181.01 176.02 184.92 184.09 179.72 182.18 3 Transportation 104.11 119.87 140.39 121.20 126.09 135.15 133.40 127.63 136.02 136.49 132.52 136.27 4 Utility 56.75 71.36 74.29 70.01 72.89 71.16 69.35 68.66 72.25 71.49 70.67 71.83 5 Finance 114.21 147.19 146.48 119.40 124.36 125.27 121.66 120.35 129.04 129.99 130.77 133.15 6 Standard & Poor's Corporation (1941-43 = 10)' 186.84 236.34 286.83 250.48 258.13 265.74 262.61 256.12 270.68 269.05 263.73 267.97 7 American Stock Exchange (Aug. 31, 1973 = 50? 229.10 264.38 316.61 267.29 276.54 295.78 300.43 296.30 306.13 307.48 297.76 297.86 Volume of trading (thousands of shares) 8 New York Stock Exchange 109,191 141,385 188,647 174,755 184,688 176,189 162,518 153,906 195,772 166,916 144,668 145,702 9 American Stock Exchange 8,355 11,846 13,832 9,853 9,961 12,442 10,706 8,931 11,348 9,938 9,307 8,198 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 28,390 36,840 31,990 31,320 31,990 32,660 33,270 33,070 32,300 31,770 31,930 32,770 Free credit balances at brokers4 11 Margin-account 2,715 4,880 4,750 4,675 4,555 4,615 4,395 4,380 4,580 4,485 4,655 4,725 12 Cash-account 12,840 19,000 15,640 15,270 14,695 14,355 13,965 14,150 14,460 14,340 14,045 14,175 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. H, 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 • December 1988 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1987 1988 AAccccoouunntt 11998855 11998866 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June' July FSLIC-insured institutions 1 Assets 1,070,012 1,163,851 1,239,883 1,246,983 1,250,855 1,254,772' 1,257,354' 1,261,391' 1,274,346' 1,285,146' 1,290,020 1,300,038 2 Mortgages 690,717 697,451 713,488 717,933 721,593 722,943r 723,856 725,62c 728,973' 773333,,553344'' 773377,,221199 774433,,554455 3 Mortgage-backed securities 115,525 158,193 197,131 200,039 201,828 201,604 197,676 197,693' 202,466' 220044,,771122 220077,,338811 220077,,990022 4 Contra-assets to mortgage assets' 45,219 41,799 42,182 41,396 42,344 41,281' 40,287' 41,261' 39,334' 39,433' 40,074 40,008 5 Commercial loans 17,424 23,683 23,256 23,294 23,163 23,538' 23,340 24,005' 24,245' 24,19C 24,597 24,861 6 Consumer loans 45,809 51,622 56,548 57,465 57,902 58,342' 58,687' 58,389' 59,126' 60,254' 6611,,113399 6611,,557733 7 Contra-assets to nonmortgage loans2 2,521 3,041 3,373 3,430 3,467 3,580 3,524 3,628 3,514' 3,396 3,506 3,339 8 Cash and investment securities 143,538 164,844 173,121 170,713 169,717 169,937 174,099 176,363' 177,949' 179,609' 177,772 178,650 9 Other3 104,739 112,898 121,894 122,367 122,462 123,269' 124,047' 124,21C 124,434' 125,976' 125,491 126,854 10 Liabilities and net worth . 1,070,012 1,163,851 1,239,883 1,246,983 1,250,855 l,254,772r 1,257,354' 1,261,391' 1,274,346' 1,285,146' 1,290,020 1,300,038 11 Savings capital 843,932 890,664 916,843 922,340 932,616 939,079 946,790 958,470 962,251' 963,685 966,672 968,405 12 Borrowed money 157,666 196,929 246,370 247,461 249,917 245,96c 239,325' 237,461' 244,810' 250,479' 257,126 262,523 13 FHLBB 84,390 100,025 109,736 111,283 116,363 114,053 112,725 112,389' 113,029 114,994 117,276 117,983 14 Other 73,276 96,904 136,634 136,178 133,554 131,907' 126,60c 125,072' 131,781' 135,485' 139,850 144,540 15 Other 21,756 23,975 27,098 27,404 21,941 23,872' 25,816 22,547' 24,681' 27,222' 24,579 27,254 16 Net worth 46,657 52,282 49,573 49,777 46,382 45,861' 45,423' 42,912' 42,604' 43.76C 41,643 41,856 FSLIC-insured federal savings banks 17 Assets 131,868 210,562 276,560 279,221 284,272 284,303 295,952 307,758 311,424 323,015' 329,732 333,605 18 Mortgages 72,355 113,638 158,507 161,014 164,013 163,915 171,592 178,264' 118800,,558888'' 186,819' 191,088 193,592 19 Mortgage-backed securities 15,676 29,766 45.117 45,237 45,826 46,171 46,687 47,979' 79,031' 51,247 52,221 52,558 20 Contra-assets to mortgage assets' 8,787 8,809 9,100 8,909 9,175 9,46C 9,345' 9,733' 10,083 10,127 71 6,275 6,540 6,504 6,496 6,971 7,378' 7,531' 7,639' 7,907 7,921 22 Consumer loans 8,361 13,180 16,563 17,343 17,696 17,649 18,795 19,141' 19,616' 20,426' 21,149 21,451 13 Contra-assets to nonmortgage loans 690 712 678 698 737 800 724 708 743 704 24 Finance leases plus 550 566 591 604 584 611 615 652 708 734 25 Cash and investment ... 34,902 33,965 35,347 34,645 35,718 38,224' 38,289' 39,918' 40,273 40,862 26 Other 11,723 19,034 24,122 24,078 24,070 24,430' 25,516 26,418 25,819' 26,757 27,212 27,318 27 Liabilities and net worth . 131,868 210,562 276,560 279,221 284,272 284,303 295,952 307,758 311,424 323,015' 329,732 333,605 28 Savings capital 103,462 157,872 197,298 199,114 203,196 204,329 214,169 224,168 226,469 232,582 236,677 239,500 29 Borrowed money 19,323 37,329 57,551 58,277 60,716 59,206 59,704 61,553 62,555 66,805 69,347 70,004 30 FHLBB 10,510 19,897 27,350 27,947 29,617 28,280 29,169 30,456 30,075 31,682 32,177 31,941 31 Other 8,813 17,432 30,201 30,330 31,099 30,926 30,535 31,097 32,480 35,123 37,170 38,063 32 Other 2,732 4,263 6,293 6,350 5,324 5,838 6,602 6,084 6,459 7,192' 6,717 7,140 33 Net worth 6,351 11,098 15,416 15,481 15,036 14,930 15,478 15,947' 16,088' 16,588' 16,8% 16,866 Savings banks 34 Assets 216,776 236,866 255,989 260,600 259,643 258,628 259,224 262,100 262,269 264,507 264,970 272,459 Loans 35 Mortgage 110,448 118,323 135,317 137,044 138,494 137,858 139,108 140,835 139,691 143,235 142,337 149,115 36 Other 30,876 35,167 36,471 37,189 33,871 35,095 35,752 36,476 37,471 35,927 35,283 36,538 Securities 37 U.S. government — 13,111 14,209 13,817 15,694 13,510 12,776 12,269 12,225 13,203 12,490 16,729 12,222 38 Mortgage-backed securities 19,481 25,836 30,202 31,144 32,772 32,241 32,423 32,272 31,072 31,861 30,455 33,017 39 State and local government 2,323 2,185 2,034 2,046 2,003 1,994 2,053 2,033 2,013 1,933 1,810 1,868 40 Corporate and other . 21,199 20,459 18,062 17,583 18,772 18,780 18,271 18,336 18,549 18,298 18,022 18,376 41 Cash 6,225 6,894 5,529 5,063 5,864 4,841 5,002 4,881 5,237 5,383 4,709 5,449 42 Other assets 13,113 13,793 14,557 14,837 14,357 15,043 14,346 15,042 15,033 15,380 15,623 15,874 43 Liabilities 216,776 236,866 255,989 260,600 259,643 258,628 259,224 262,100 262,269 264,507 264,970 272,459 44 Deposits 185,972 192,194 199,336 202,030 201,497 199,545 200,391 203,407 203,273 205,692 204,187 210,751 45 Regular 181,921 186,345 193,777 1%,724 196,037 194,322 195,336 198,273 197,801 200,098 198,354 204,851 46 Ordinary savings . 33,018 37,717 42,045 42,493 41,959 41,047 41,234 41,867 41,741 42,403 42,824 43,228 47 Time 103,311 100,809 109,486 112,231 112,429 112,781 113,751 115,529 115,887 117,297 116,683 121,356 48 Other 4,051 5,849 5,559 5,306 5,460 5,223 5,055 5,134 5,472 5,594 5,833 5,900 49 Other liabilities 1177,,441144 25,274 34,226 36,167 35,720 36,836 35,787 3355,,773377 35,827 3355,,883366 3388,,885500 37,584 50 General reserve accounts 12,823 18,105 20,365 21,133 20,633 20,514 20,894 21,024 21,109 21,179 20,553 21,559 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.37—Continued 1987 1988 AAccccoouunntt 11998855 11998866 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July Credit unions5 5511 TToottaall aasssseettss//lliiaabbiilliittiieess aanndd ccaappiittaall 118,010 147,726 1 t 1 1 t 169,111 169,175 172,456 172,345 173,276 5522 FFeeddeerraall 77,861 95,483 109,797 109,913 112,595 112,573 113,068 5533 SSttaattee 40,149 52,243 59,314 59,262 59,855 59,772 60,208 5544 LLooaannss oouuttssttaannddiinngg .... 73,513 86,137 101,965 103,271 105,704 105,800 107,065 5555 FFeeddeerraall 47,933 55,304 65,732 66,431 68,213 68,658 69,626 5566 SSttaattee 25,580 30,833 n.a. n.a. n.a. n.a. n.a. 36,233 36,840 37,491 37,142 37,439 5577 SSaavviinnggss 105,963 134,327 156,045 155,105 157,764 158,186 159,314 5588 FFeeddeerraall 70,926 87,954 1 1 1 1 1 101,847 101,048 103,129 103,347 104,256 5599 SSttaattee 35,037 46,373 54,198 54,057 54,635 54,839 55,058 Life insurance companies 60 Assets 825,901 937,551 1,021,148 1,024,460 1,033,170 1,042,350 1,052,645 1,065,549 1,075,541 1,094,827 Securities 61 Government ..... 75,230 84,640 90,782 91,227 91,302 91,682 92,497 92,408 93,946 86,711 62 United States6.. 51,700 59,033 64,880 65,186 64,551 64,922 65,534 65,218 66,749 58,988 63 State and local . 9,708 11,659 11,363 11,539 11,758 11,749 11,859 12,033 11,976 11,016 64 Foreign7 13,822 13,948 14,539 14,502 14,993 15,011 15,104 15,157 15,221 16,707 65 Business 423,712 492,807 549,426 548,767 553,486 563,019 571,070 580,392 587,846 606,445 n.a. n.a. 66 Bonds 346,216 401,943 455,678 459,537 461,942 469,207 476,448 484,403 490,285 503,728 67 Stocks 77,496 90,864 93,748 89,230 91,544 93,812 94,622 95,989 97,561 102,717 68 Mortgages 171,797 193,842 206,507 208,839 212,375 212,637 213,182 214,815 215,383 219,012 69 Real estate 28,822 31,615 33,235 33,538 34,016 34,178 34,503 34,845 34,964 35,484 70 Policy loans 54,369 54,055 53,413 53,334 53,313 53,265 52,720 52,604 52,568 53,013 71 Other assets 71,971 80,592 87,785 88,755 88,678 87,569 88,673 90,499 90,834 94,162 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 federily 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 Financial Statistics • December 1988 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr 1988 111999888666 111999888777 Apr. May June July Aug. Sept. U.S. budget* 1 Receipts, total 769,091 854,143 109,323 59,711 99,205 60,690 69,479 97,803 2 On-budget 568,862 640,741 81,993 39,764 77,643 40,980 51,015 75,586 3 Off-budget 200,228 213,402 27,330 19,947 21,562 19,710 18,464 22,217 4 Outlays, total 990,258 1,004,586 95,554 82,295 90,071 83,634 92,561 87,588 5 On-budget 806,760 810,754 79,629 64,688 72,888 66,818 74,756 70,071 6 Off-budget 183,498 193,832 15,925 17,607 17,184 16,816 17,805 17,518 7 Surplus, or deficit (-), total -221,167 -150,444 13,769 -22,583 9,134 -22,944 -23,082 10,214 8 On-budget -237,898 -170,014 2,364 -24,924 4,755 -25,838 -23,741 5,515 9 Off-budget 16,731 19,570 11,405 2,340 4,379 2,894 659 4,699 Source of financing (total) 10 Borrowing from the public 236,187 150,070 -334 7,559 11,391 3,665 23,370 14,665 11 Operating cash (decrease, or increase (-)l -14,324 -5,052 -23,276 27,223 -20,638 15,696 10,954 -31,444 12 Other -696 5,426 9,841 -12,199 113 3,583 -11,242 6,564 MEMO 13 Treasury operating balance (level, end of period) 31,384 36,436 46,189 18,966 39,604 23,908 12,954 44,398 14 Federal Reserve Banks 7,514 9,120 16,186 2,871 9,762 3,910 4,390 13,024 15 Tax and loan accounts 23,870 27,316 30,003 16,095 29,842 19,998 8,564 31,375 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetaiy fund; other cash and monetary assets; accrued interest of 1985, all former off-budget entries are now presented on-budget. The Federal payable to the public; allocations of special drawing rights; deposit funds; Financing Bank (FFB) activities are now shown as separate accounts under the miscellaneous liability (including checks outstanding) and asset accounts; agencies that use the FFB to finance their programs. The act has also moved two seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustsocial security trust funds (Federal old-age survivors insurance and Federal ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold. disability insurance trust funds) off-budget. SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to 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 1986 1988 1986 1987 July Aug. Sept. RECEIPTS 1 All sources 769,091 854,143 387,524 447,282 421,712 476,115 60,690 69,479 97,803 2 Individual income taxes, net 348,959 392,557 183,156 205,157 192,575 207,659 25,791 31,942 41,784 3 Withheld 314,803 322,463 164,071 156,760 170,203 169,300 25,567 30,3301 27,2091 4 Presidential Election Campaign Fund . 36 33 4 30 4 28 2 5 Nonwithheld 105,994 142,957 27,733 112,421 31,223 101,614 2,300 2,956 16,793 6 Refunds 71,873 72,896 8,652 64,052 8,853 63,283 2,078 1,346 2,219 Corporation income taxes 7 Gross receipts 80,442 102,859 42,108 52,396 52,821 58,002 3,101 2,377 21,380 8 Refunds 17,298 18,933 8,230 10,881 7,119 8,706 1,602 916 712 9 Social insurance taxes and contributions net 283,901 303,318 134,006 163,519 143,755 181,058 26,915 28,373 28,694 10 Employment taxes and contributions 255,062 273,028' 122,246 146,696 130,388 164,412 24,964 23,477 27,991 11 Self-employment taxes and 0 contributions 11,840 13,987 1,338 12,020 1,889 14,839 380 2,326 12 Unemployment insurance 24,098 25,575' 9,328 14,514 10,977 14,363 1,598 4,545 285 13 Other net receipts 4,742 4,715 2,429 2,310 2,390 2,284 353 351 419 14 Excise taxes 32,919 32,457' 15,947 15,845 17,680 16,440 3,250 3,490 3,158 15 Customs deposits 13,327 15,085' 7,282 7,129 7,993 7,851 1,343 1,650 1,367 16 Estate and gift taxes 6,958 7,493 3,649 3,818 3,610 3,863 627 661 678 17 Miscellaneous receipts 19,884 19,307 9,605 10,299 10,399 9,950 1,265 1,902 1,454 OUTLAYS 18 All types 990,231 1,004,586 506,556 503,267' 532,839 513,210 83,634 92,561 87,588 19 National defense 273,375 281,999 138,544 142,886 146,995 143,080 24,449 24,532 21,941 20 International affairs 14,152 11,649 8,938 4,374 4,487 7,150 1,568 833 -691 21 General science, space, and technology . 8,976 9,216 4,594 4,324 5,469 5,361 961 930 702 22 Energy 4,735 4,115 2,446 2,335 1,468 555 257 282 116 23 Natural resources and environment 13,639 13,363 7,141 6,175 7,590 6,776 1,0% 1,213 1,625 24 Agriculture 31,449 27,356 15,660 11,824 14,640 7,872 311 -152 -414 25 Commerce and housing credit 4,890 6,182 3,764 4,893 3,852 5,951 -337 4,077 6,076 26 Transportation 28,117 26,228 14,745 12,113 14,096 12,700 2,335 2,6% 2,568 27 Community and regional development .. 7,233 5,051 3,651 3,108 2,075 2,765 -109 284 743 28 Education, training, employment, and social services 30,585 29,724 16,209 14,182 15,592 15,451 3,033 2,588 29 Health 35,935 39,968 18,795 20,318 20,750 22,643 3,502 3,977 3,823 30 Social security and medicare 268,921 282,473 138,299 142,864 158,469 135,322 23,475 25,692 25,215 31 Income security 119,796 123,250 59,979 62,248 61,201 65,555 10,907 10,581 11,226 32 Veterans benefits and services 26,356 26,782 14,190 12,264 14,956 13,241 2,354 2,249 3,085 33 Administration of justice 6,603 7,548 3,413 3,626 4,291 4,761 735 900 710 34 General government 6,104 5,948 1,860 3,344 3,560 4,337 1704 8140 7906 35 General-purpose fiscal assistance 6,431 1,621 2,886 337 1,175 448 36 Net interest6 136,008 138,570 66,226 70,110 71,933 76,098 12,677 13,661 12,371 37 Undistributed offsetting receipts -33,007 -36,455 -16,475 -19,102 -17,684 -17,766 -2,706 -3,041 -4,892 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 • December 1988 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1986 1987 1988 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 2,063.6 2,129.5 2,218.9 2,250.7 2,313.1 2,354.3 2,435.2 2,493.2 2,555.1 2 Public debt securities 2,059.3 2,125.3 2,214.8 2,246.7 2,309.3 2,350.3 2,431.7 2,487.6 2,547.7 3 Held by public 1,684.9 1,742.4 1,811.7 1,839.3 1,871.1 1,893.1 1,954.1 1,996.7 2,013.4 4 Held by agencies 374.4 382.9 403.1 407.5 438.1 457.2 477.6 490.8 534.2 5 Agency securities 4.3 4.2 4.0 4.0 3.8 4.0 3.5 5.6 7.4 6 Held by public 3.2 3.2 3.0 2.9 2.8 3.0 2.7 5.1 7.0 7 Held by agencies 1.1 1.1 1.1 1.1 1.0 1.0 .8 .6 .5 8 Debt subject to statutory limit 2,060.0 2,111.0 2,200.5 2,232.4 2,295.0 2,336.0 2,417.4 2,472.6 2,532.2 9 Public debt securities 2,058.7 2,109.7 2,199.3 2,231.1 2,293.7 2,334.7 2,416.3 2,472.1 2,532.1 10 Other debt1 1.3 1.3 1.3 1.3 1.3 1.3 1.1 .5 .1 11 MEMO: Statutory debt limit 2,078.7 2,111.0 2,300.0 2,300.0 2,320.0 2,800.0 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 1986 1987 Q3 Q4 Q1 Q2 1 Total gross public debt 1,663.0 1,945.9 2,214.8 2,431.7 2,350.3 2,431.7 2,487.6 2,547.7 By type 2 Interest-bearing debt 1,660.6 1,943.4 2,212.0 2,428.9 2,347.7 2,428.9 2,484.9 2,545.0 3 Marketable 1,247.4 1,437.7 1,619.0 1,724.7 1.676.0 1,724.7 1,758.7 1,769.9 4 Bills 374.4 399.9 426.7 389.5 378.3 389.5 392.6 382.3 5 Notes 705.1 812.5 927.5 1,037.9 1.005.1 1,037.9 1,059.9 1,072.7 6 Bonds 167.9 211.1 249.8 282.5 277.6 282.5 291.3 299.9 7 Nonmarketable1 413.2 505.7 593.1 704.2 671.8 704.2 726.2 775.1 8 State and local government series 44.4 87.5 110.5 139.3 129.0 139.3 142.9 146.9 1 9 0 Fo G re o ig v n e r i n s m su e e n s t 9 9 . . 1 1 7 7 . . 5 5 4 4 . . 7 7 4 4 . . 0 0 4 4 . . 3 3 4 4 . . 0 0 66..11 5 5 . . 7 7 1 1 1 2 Sa P vi u n b g l s ic bonds and notes. 73. . 1 0 78. . 1 0 90. . 6 0 99. . 2 0 97. . 0 0 99. . 2 0 102 . .3 0 104. . 5 0 13 Government account series 286.2 332.2 386.9 461.3 440.7 461.3 474.4 517.5 14 Non-interest-bearing debt 2.3 2.5 2.8 2.8 2.5 2.8 2.6 2.7 By holder4 15 U.S. government agencies and trust funds 289.6 348.9 403.1 477.6 457.2 477.6 n.a. n.a. 16 Federal Reserve Banks 160.9 181.3 211.3 222.6 211.9 222.6 n.a. n.a. 17 Private investors 1,212.5 1,417.2 1,602.0 1,745.2 1,682.6 1,745.2 1,778.2 1,784.9 18 Commercial banks 183.4 192.2 238.2 253.3 251.3 253.3 260.7 263.0 19 Money market funds 25.9 25.1 28.0 14.3 15.2 14.3 15.2 13.4 20 Insurance companies 76.4 115.4 135.4 n.a. 143.0 n.a. n.a. n.a. 21 Other companies 50.1 59.0 68.8 84.6 81.8 84.6 n.a. 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 98.5 101.1 104.0 106.2 24 Other securities 69.3 75.0 70.5 n.a. 70.4 n.a. n.a. n.a. 25 Foreign and international5 192.9 212.5 251.6 287.3 267.0 287.3 320.8 332.3 26 Other miscellaneous investors 354.7 434.2 467.1 n.a. n.a. n.a. n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes tion Administration; depository bonds, retirement plan bonds, and individual non-interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated se- mutual savings banks, corporate pension trust funds, dealers and brokers, certain ries held by foreigners. U.S. Treasury deposit accounts, and federally-sponsored agencies. 3. Held almost entirely by U.S. Treasury agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds Statement of the Public Debt of the United States; data by holder. Treasury are actual holdings; data for other groups are Treasury estimates. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Par value; averages of daily figures, in millions of dollars 1988 1988 IItteemm 11998855 11998866 11998877 Jul/ Aug.' Sept. Aug. 24 Aug. 31' Sept. 7 Sept. 14 Sept. 21 Sept. 28 Immediate delivery2 1 U.S. Treasury securities 75,331 95,445 110,052 92,162 100,203 99,308 82,200r 93,783 104,585 96,637 84,746 104,620 By maturity 2 Bills 32,900 34,247 37,924 29,167 29,568 27,410 21,916r 31,659 29,003 24,192 25,978 29,838 3 Other within 1 year 1,811 2,115 3,272 2,942 3,464 3,248 2,662 3,682 2,328 2,814 2,759 4,000 4 1-5 years 18,361 24,667 27,918 23,127 28,581 28,224 25,419 22,605 24,588 24,524 23,007 36,671 5 5-10 years 12,703 20,456 24,014 23,301 23,786 25,891 19,252r 23,949 30,841 28,595 21,044 22,146 6 Over 10 years 9,556 13,961 16,923 13,625 14,804 14,536 12,950 11,888 17,824 16,511 11,959 11,965 By type of customer 7 U.S. government securities dealers 3,336 3,670 2,936 2,255 2,328 2,671 1,739 2,132 1,895 2,217 2,280 3,101 8 U.S. government securities brokers 36,222 49,558 61,539 55,147 58,483 58,671 47,103' 54,127 60,789 58,313 50,749 62,049 9 All others3 35,773 42,218 45,576 34,758 39,390 37,965 33,356r 37,524 41,900 36,107 31,716 39,468 10 Federal agency securities 11,640 16,748 18,087 14,285 13,969 15,460 10,577' 13,118 13,549 14,218 16,172 14,875 11 Certificates of deposit 4,016 4,355 4,112 3,316 3,053 3,128 3,019 3,045 3,537 2,850 2,984 3,028 12 Bankers acceptances 3,242 3,272 2,965 2,401 1,834 1,994 1,669' 2,038 2,2% 1,923 1,795 1,938 13 Commercial paper 12,717 16,660 17,135 26,738 23,418 26,416 22,397 24,656 24,940 26,989 27,773 25,571 Futures contracts* 14 Treasury bills 5,561 3,311 3,233 1,886 2,593 2,555 1,384 2,479 3,533 2,914 1,879 2,179 15 Treasury coupons 6,085 7,175 8,964 8,524 9,485 9,393 7,765 7,675 10,690 9,868 8,292 8,020 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 1,670 2,283 1,478 3,741' 691 968 982 2,012 2,106 18 Federal agency securities 3,857 7,831 9,290 7,088 8,701 7,599 7,426 5,444 6,754 11,287 7,294 5,649 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 • December 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 July Aug/ Sept. Aug. 31f Sept. 7 Sept. 14 Sept. 21 Sept. 28 Positions Net immediate2 1 U.S. Treasury securities 7,391 12,912 -6,216 -31,320 -31,781 -26,763 -25,977 -24,643 -25,313 -27,689 -27,822 2 Bills 10,075 12,761 4,317 -90 1,658 6,815 6,254 7,493 6,803 6,882 8,317 3 Other within 1 year 1,050 3,706 1,557 -2,638 -2,389 -3,811 -3,202 -3,431 -3,251 -4,141 -3,943 4 1-5 years 5,154 9,146 649 -4,887 -6,234 -2,8% -5,271 -2,733 -2,588 -3,193 -4,865 5 5-10 years -6,202 -9,505 -6,564 -14,049 -13,383 -13,753 -12,008 -13,414 -13,436 -13,831 -14,139 6 Over 10 years -2,686 -3,197 -6,174 -9,655 -11,432 -13,117 -11,750 -12,558 -12,842 -13,406 -13,191 7 Federal agency securities 22,860 32,984 31,910 30,070r 27,844 29,027 27,007 27,674 28,9% 29,979 28,894 8 Certificates of deposit 9,192 10,485 8,188 8,832'' 8,476 8,200 8,346 8,680 8,199 7,916 8,191 9 Bankers acceptances 4,586 5,526 3,661 2,734 1,963 1,786 2,048 2,135 1,829 1,438 1,798 10 Commercial paper 5,570 8,089 7,496 5,847 5,829 6,830 6,082 6,285 6,348 7,195 7,001 Futures positions 11 Treasury bills -7,322 -18,059 -3,373 904 1,157 -4,049 1,079 -1,927 -3,582 -5,976 -4,710 12 Treasury coupons 4,465 3,473 5,988 7,454 8,476 7,719 7,938 8,100 7,400 7,785 7,600 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 1,353 641 -347 1,161 994 149 -558 -1,501 15 Federal agency securities -9,420 -11,840 -18,817 -18,780 -17,258 -16,981 -15,737 -15,675 -17,357 -18,030 -16,553 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 68,035 98,954 124,791 132,912 142,120 139,167 152,267 140,679 140,935 139,350 132,608 17 Term 80,509 108,693 148,033 173,938 180,855 185,275 174,288 177,115 184,836 118899,,338855 119900,,118877 Repurchase agreements 18 Overnight and continuing 101,410 141,735 170,840 170,062 174,006 178,459 187,072 180,419 179,452 178,128 172,412 19 Term 70,076 102,640 120,980 130,220 134,608 134,107 125,603 123,826 131,477 138,002 142,523 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 1988 AAggeennccyy 11998844 11998855 11998866 11998877 Apr. May June July Aug. 1 Federal and federally sponsored agencies 271,220 293,905 307,361 341,386 348,273 352,216 354,446 n.a. n.a. 2 35,145 36,390 36,958 37,981 36,672 36,430 36,361 36,465 n.a. 3 Defense Department 142 71 33 13 11 11 11 11 11 4 Export-Import Bank2,3 15,882 15,678 14,211 11,978 11,494 11,494 11,232 11,232 11,232 5 Federal Housing Administration 133 115 138 183 103 105 116 116 115 6 Government National Mortgage Association participation certificates 2,165 2,165 2,165 1,615 883300 883300 883300 883300 n.a. 7 Postal Service 1,337 1,940 3,104 6,103 6,103 5,842 5,842 5,842 5,842 8 Tennessee Valley Authority 15,435 16,347 17,222 18,089 18,131 18,148 18,330 18,434 18,494 9 United States Railway Association6 51 74 85 0 0 0 0 0 0 10 Federally sponsored agencies7 237,012 257,515 270,553 303,405 311,601 315,786 318,085 n.a. n.a. 11 Federal Home Loan Banks 65,085 74,447 88,752 115,725 118,153 117,864 117,773 119,409 121,266 12 Federal Home Loan Mortgage Corporation 10,270 11,926 13,589 17,645 17,199 19,495 17,619 n.a. n.a. 13 Federal National Mortgage Association 83,720 93,896 93,563 97,057 100,911 102,515 104,757 104,751 105,730 14 Farm Credit Banks8 72,192 68,851 62,478 55,275 54,311 54,578 55,779 54,538 53,538 15 Student Loan Marketing Association9 5,745 8,395 12,171 16,503 18,877 18,434 19,257 19,453 19,680 16 Financing Corporation1" n.a. n.a. n.a. 1,200 2,150 2,900 2,900 2,900 3,750 17 Farm Credit Financial Assistance Corporation" n.a. n.a. n.a. n.a. n.a. n.a. n.a. 450 450 MEMO 18 Federal Financing Bank debt 145,217 153,373 157,510 152,417 150,044 149,986 149,833 149,937 149,809 Lending to federal and federally sponsored agencies 19 Export-Import Bank 15,852 15,670 14,205 11,972 11,488 11,488 11,226 11,226 11,226 70 Postal Service6 1,087 1,690 2,854 5,853 5,853 5,592 5,592 5,592 5,592 71 Student Loan Marketing Association 5,000 5,000 4,970 4,940 4,940 4,940 4,940 4,940 4,940 22 Tennessee Valley Authority 13,710 14,622 15,797 16,709 16,751 16,768 16,950 17,054 17,114 23 United States Railway Association6 51 74 85 0 0 0 0 0 0 Other Lending13 7,4 Farmers Home Administration 58,971 64,234 65,374 59,674 59,674 59,674 59,674 59,674 59,464 75 Rural Electrification Administration 20,693 20,654 21,680 21,191 19,203 19,218 19,204 19,206 19,225 26 29,853 31,429 32,545 32,078 32,135 32,306 32,247 32,245 32,248 1. Consists of mortgages assumed by the Defense Department between 1957 9. Before late 1981, the Association obtained financing through the Federal and 1963 under family housing and homeowners assistance programs. Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is 2. Includes participation certificates reclassified as debt beginning Oct. 1,1976. shown on line 21. 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. 10. The Financing Corporation, established in August 1987 to recapitalize the 4. Consists of debentures issued in payment of Federal Housing Administration Federal Savings and Loan Insurance Corporation, undertook its first borrowing in insurance claims. Once issued, these securities may be sold privately on the October 1987. securities market. 11. The Farm Credit Financial Assistance Corporation (established in January 5. Certificates of participation issued before fiscal 1969 by the Government 1988 to provide assistance to the Farm Credit System) undertook its first National Mortgage Association acting as trustee for the Farmers Home Admin- borrowing in July 1988. istration; Department of Health, Education, and Welfare; Department of Housing 12. The FFB, which began operations in 1974, is authorized to purchase or sell and Urban Development; Small Business Administration; and the Veterans obligations issued, sold, or guaranteed by other federal agencies. Since FFB Administration. incurs debt solely for the purpose of lending to other agencies, its debt is not 6. Off-budget. included in the main portion of the table in order to avoid double counting. 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- 13. Includes FFB purchases of agency assets and guaranteed loans; the latter tures. Some data are estimated. contain loans guaranteed by numerous agencies with the guarantees of any 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, particular agency being generally small. The Farmers Home Administration item shown in line 17. consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 DomesticN onfinancial Statistics • December 1988 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars Type of issue or issuer, or use 1985 1986 1987 Feb. Apr. May June July Aug/ Sept. 1 All issues, new and refunding1 214,189 147,011 102,407 8,585 9,821 5,847 7,846 13,912 9,746 6,966 9,243 Type of issue 2 General obligation 52,622 46,346 30,589 2,880 2,776 1,707 3,085 4,237 1,959 2,472 2,286 3 Revenue 161,567 100,664 71,818 5,705 7,045 4,140 4,761 9,675 7,788 4,494 6,957 Type of issuer 4 State 13,004 14,474 10,102 1,197 739 441 913 1,349 140 576 1,206 5 Special district and statutory authority 134,363 89,997 65,460 5,154 6,310 4,078 4,625 8,629 6,752 3,749 6,110 6 Municipalities, counties, and townships 78,754 42,541 26,845 2,234 2,772 1,328 2,308 3,934 2,854 2,641 1,927 7 Issues for new capital, total 156,050 83,490 56,789 2,738 2,401 1,476 2,334 2,352 2,079 2,318 2,783 Use of proceeds 8 Education 16,658 12,307 9,524 754 933 911 1,316 1,320 1,699 694 1,174 9 Transportation 12,070 7,246 3,677 826 559 215 452 858 1,446 265 683 10 Utilities and conservation 26,852 14,594 7,912 655 1,016 429 580 635 225 613 514 11 Social welfare 63,181 11,353 11,106 650 1,218 1,099 694 2,060 1,222 1,242 2,358 12 Industrial aid 12,892 6,190 7,474 2,473 105 298 248 434 128 460 351 13 Other purposes 24,398 31,802 18,020 415 2,213 996 1,900 3,628 3,666 2,043 1,891 1. Par amounts of long-term issues based on date of sale. SOURCES. Securities Data/Bond Buyer Municipal Data Base beginning 1986. 2. Includes school districts beginning 1986. Public Securities Association for earlier data. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 1988 Type of issue or issuer, or use 1987 Feb. Apr. May July Aug. 1 All issues' 239,015 423,726 392,156 22,175 22,439 25,902 21,227 23,413 30,043' 17,982' 18,661 2 Bonds2 203,500 355,293 325,648 19,485 18,549 20,815 18,515 19,382 25,748' 12,844' 15,339 Type of offering 3 Public, domestic 119,559 231,936 209,279 18,246 16,758 19,827 16,202 17,4% 22,753' 10,850' 14,000 4 Private placement, domestic3 . 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 42,5% 24,299 1,239 1,791 2,313 1,886 2,995 1,994 1,339 Industry group 6 Manufacturing 63,973 91,548 61,666 3,053 3,151 3,482 4,513 4,206 5,305' 2,204' 3,500 7 8 T C r o a m n m sp e o r r c t i a a t l i o a n n d miscellaneous 1 6 7 , , 0 0 2 6 0 6 4 9 0 , , 9 1 7 2 1 4 4 1 9 1 , , 3 9 2 7 7 4 2,0840 1, 2 4 0 16 0 1 1 , , 0 0 0 1 7 7 7 8 7 9 1 0 1,4 1 4 8 6 4 2, 5 2 8 8 0 1 ' 1,5 10 3 0 1 ' 2,2020 9 Public utility 13,649 31,426 23,004 1,142 1,718 2,259 1,170 1,929 1,707 54C 298 10 Communication 10,832 16,659 7,340 206 101 115 411 69 925' 577' 29 11 Real estate and financial 91,958 165,564 172,343 13,000 11,962 12,935 10,760 11,546 14,949' 7,893' 9,310 12 Stocks3 35,515 68,433 66,508 2,690 3,890 5,087 2,712 4,031 4,295 5,138 3,322 Type 13 Preferred 6,505 11,514 10,123 1,388 376 625 241 285 501 407 495 14 Common 29,010 50,316 43,228 1,302 3,513 4,462 2,471 3,746 3,794 4,731 2,827 15 Private placement3 6,603 13,157 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 5,700 15,027 13,880 268 2% 256 318 1,080 1,676 2% 538 1 1 7 8 T C r o a m n m sp e o r r c t i a a t l i o a n n d miscellaneous 9 1 , , 1 5 4 4 9 4 1 2 0 , , 4 6 2 1 7 7 1 2 2 , , 4 8 3 8 9 8 3601 47 4 4 4 9 3 9 2 2 1 7 5 6 0 15 1 7 5 52 5 2 1 2,0730 3 7 3 2 6 2 1 0 9 C Pu o b m li m c u u n t i il c i a ty ti on 1, 9 9 7 6 8 6 4 1 , , 0 8 2 2 0 5 4 1 , , 3 4 2 5 2 8 1 6 0 0 0 1402 6 9 3 3 2 1 3 0 8 9 7 5 8 9 20 1 7 3 2 2 0 0 13 3 5 21 Real estate and financial 16,178 34,517 31,521 1,901 2,933 4,544 1,621 2,642 1,826 2,729 2,238 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 1988 IItteemm 11998866 11998877 Jan. Feb. Mar. Apr. May June Julyr Aug. INVESTMENT COMPANIES1 1 Sales of own shares2 411,751 381,260 30,343 23,265 24,589 23,162 19,579 22,503 20,728 20,595 2 Redemptions of own shares3 239,394 314,252 22,324 20,914 23,968 25,000 21,412 23,168 20,561 22,836 3 Net sales 172,357 67,008 8,019 2,351 620 -1,828 -1,833 -665 167 -2,241 4 Assets4 424,156 453,842 468,998 481,232 473,206 473,321 468,735 481,120 477,076 465,826 5 Cash position5 30,716 38,006 40,157 41,232 43,561 45,307 45,003 43,229 44,015 45,230 6 Other 393,440 415,836 428,841 439,995 426,645 428,014 423,732 437,891 433,061 420,5% 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1 Corporate profits with inventory valuation and capital consumption adjustment 282.3 298.8 310.4 301.2 293.9 298.3 305.2 322.0 316.1 316.2 326.5 2 Profits before tax 224.2 236.3 276.7 240.5 252.1 261.8 273.7 289.4 281.9 286.2 305.9 3 Profits tax liability %.4 106.6 133.8 107.9 114.3 126.3 132.6 140.0 136.2 136.9 143.2 4 Profits after tax 127.8 129.8 142.9 132.6 137.9 135.5 141.1 149.5 145.7 149.4 162.7 5 Dividends 83.2 88.2 95.5 88.9 89.8 91.7 94.0 97.0 99.3 101.3 103.1 6 Undistributed profits 44.5 41.5 47.4 43.7 48.1 43.8 47.0 52.4 46.4 48.1 59.6 7 Inventory valuation -1.7 8.3 -18.0 8.7 -8.1 -14.4 -20.0 -19.5 -18.2 -19.4 -27.4 8 Capital consumption adjustment 59.8 54.1 51.7 52.0 49.8 50.8 51.5 52.1 52.4 49.4 48.0 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 • December 1988 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1987 1988 IInndduussttrryy 11998866 11998877 1199888811 Ql Q2 Q3 Q4 Ql Q2 Q31 Q41 1 Total nonfarm business 379.47 389.67 430.95 376.73 380.66 394.54 406.82 412.02 426.94 440.42 444.40 Manufacturing 2 Durable goods industries 69.14 71.01 78.06 70.79 69.05 71.96 72.28 75.70 76.87 80.59 7799..0099 3 Nondurable goods industries 73.56 74.88 85.50 70.70 72.66 76.24 79.92 82.90 84.82 85.78 88.48 Nonmanufacturing 4 Mining 11.22 11.39 12.62 10.38 11.02 11.81 1122..3322 12.59 13.26 12.74 1111..8899 Transportation 5 Railroad 6.66 5.92 7.05 5.68 5.84 6.07 66..1122 66..9922 7.01 77..0077 77..1199 6 Air 6.26 6.53 7.61 7.01 6.02 6.15 6.94 6.43 6.66 9.31 8.02 7 Other 5.89 6.40 6.91 6.08 6.26 6.97 6.28 7.08 7.05 7.06 6.44 Public utilities 8 Electric 33.91 31.63 32.20 31.23 31.47 31.57 32.28 30.31 30.95 33.79 33.76 9 Gas and other 12.47 13.25 14.27 12.72 12.47 13.73 14.11 14.30 14.48 14.26 14.04 10 Commercial and other 160.38 168.65 186.74 162.13 165.86 170.05 176.56 175.79 185.83 189.82 195.50 •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 Qi 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 IS 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 1988 TTyyppee Mar. Apr. May June July Aug. 1 Total 156,297 171,966 205,869 216,007 218,914 220,304 222,133 223,706 223,975 Retail financing of installment sales 2 Automotive (commercial vehicles) 20,660 25,952 35,674 36,914 37,619 37,219 37,519 37,682 37,519 3 Business, industrial, and farm equipment 22,483 22,950 24,987 2277,,008811 2277,,226633 2277,,008811 2277,,554488 2277,,442288 2277,,660033 Wholesale financing 4 Automotive 23,988 23,419 31,059 27,329 27,361 28,260 28,731 28,449 27,721 5 Equipment 4,568 5,423 5,693 5,251 5,429 5,237 5,557 5,654 5,803 6 All other 6,809 7,079 8,408 8,347 8,311 8,414 88,,448811 8,458 8,531 Leasing 7 Automotive 16,275 19,783 21,943 23,493 23,458 23,690 24,076 24,400 24,370 8 Equipment 34,768 37,833 43,002 50,411 51,092 52,126 52,365 52,803 5533,,667711 9 Loans on commercial accounts receivable and factored commercial accounts receivable 15,765 15,959 18,024 17,895 18,789 18,700 18,595 19,095 19,132 10 All other business credit 10,981 13,568 17,079 19,287 19,592 19,578 19,260 19,736 19,609 Net change (during period) 11 19,607 15,669 3,040 2,670 2,907 1,390 1,829 1,573 269 Retail financing of installment sales 12 Automotive (commercial vehicles) 5,067 5,292 1,220 5% 705 -400 300 163 -163 13 Business, industrial, and farm equipment -363 467 223 105 182 -181 467 -120 175 Wholesale financing 14 Automotive 5,423 -569 158 -1,325 32 899 471 -282 -728 15 Equipment -867 855 -101 -72 178 -192 320 97 149 16 All other 1,069 270 257 16 -36 103 67 -23 73 Leasing 17 Automotive 3,896 3,508 -70 393 -34 231 386 324 -30 18 Equipment 2,685 3,065 1,038 2,236 681 1,034 239 438 867 19 Loans on commercial accounts receivable and factored commercial accounts receivable 2,161 194 -477 -643 894 -88 -105 500 37 20 All other business credit 536 2,587 792 689 305 -14 -318 476 -127 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 Financial Statistics • December 1988 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1988 Mar. Apr. May June July Aug. Sept. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 104.1 118.1 137.0 147.2 151.4 145.3 152.0 152.9 154.2'' 145.3 2 Amount of loan (thousands of dollars) 77.4 86.2 100.5 106.3 112.1 108.0 110.2 111.9 114.9' 108.6 3 Loan/price ratio (percent) 77.1 75.2 75.2 75.0 76.2 76.4 73.8 75.2 76.7' 75.9 4 Maturity (years) 26.9 26.6 27.8 27.3 27.7 28.1 27.5 28.4 28.5' 27.8 5 Fees and charges (percent of loan amount) 2.53 2.48 2.26 2.28 2.20 2.15 2.16 2.24 2.35' 2.16 6 Contract rate (percent per year) 11.12 9.82 8.94 8.77 8.76 8.59 8.90 8.80 8.68 8.90 Yield (percent per year) 7 FHLBB series3 11.58 1100..2255 9.31 9.15 9.13 8.95 9.26 9.17 9.06' 9.25 8 HUD series4 12.28 10.07 10.13 9.99 10.19 10.48 10.35 n.a. n.a. n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series) 12.24 9.91 10.12 10.28 10.46 10.84 10.65 n.a. n.a. n.a. 10 GNMA securities6 11.61 9.30 9.42 9.53 9.67 9.93 9.88 9.91 10.09 9.93 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 94,574 98,048 95,030 99,787 100,796 101,747 102,368 102,540 102,540 n.a. 12 FHA/VA-insured 34,244 29,683 21,660 20,094 19,932 19,805 19,765 19,677 19,586 n.a. 13 Conventional 60,331 68,365 73,370 79,693 80,864 81,941 82,603 82,864 82,954 n.a. Mortgage transactions (during period) 14 Purchases 21,510 30,826 20,531 2,776 2,409 2,138 2,372 1,960 1,638 n.a. Mortgage commitments7 15 Contracted (during period) 20,155 32,987 25,415 3,823 2,555 2,142 2,179 1,108 1,041 n.a. 16 Outstanding (end of period) 3,402 3,386 4,886 6,149 6,033 5,777 5,365 4,277 3,135 n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 12,399 13,517 12,802 14,386 14,822 15,228 15,576 15,133 n.a. n.a. 18 FHA/VA 841 746 686 641 635 633 627 619 n.a. n.a. 19 Conventional 11,559 12,771 12,116 13,745 14,187 14,595 14,949 14,514 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,012 103,474 76,845 2,932 2,772 2,877 4,117 3,879 n.a. n.a. 21 Sales 38,905 100,236 75,082 2,312 2,271 2,325 3,649 4,115 n.a. n.a. Mortgage commitments9 22 Contracted (during period) 48,989 110,855 71,467 4,262 6,437 5,159 6,447 5,328 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 1987 1988 Type of holder, and type of property 11998855 11998866 11998877 Q2 Q3 Q4 Q1 Q2 1 All holders 2,289,843 2,597,175 2,943,176 2,792,723 2,864,736 2,943,176 2,987,155 3,056,615 2 1- to 4-faraily 1,488,009 1,698,524 1,925,203 1,817,482 1,870,635 1,925,203 1,955,325 2,006,675 3 Multifamily 214,470 247,831 273,836 263,874 268,911 273,836 277,571 282,920 4 Commercial 481,514 555,039 655,269 620,087 635,230 655,269 666,0% 679,305 5 Farm 105,850 95,781 88,868 91,280 89,960 88,868 88,163 87,715 6 Selected financial institutions 1,390,394 1,507,289 1,700,820 1,607,000 1,648,328 1,700,820 1,722,742 1,760,744 7 Commercial banks2 429,196 502,534 591,151 544,759 567,000 591,151 603,408 622,237 8 1- to 4-family 213,434 235,814 275,761 252,813 263,762 275,761 279,977 289,029 9 Multifamily 23,373 31,173 33,296 30,543 32,114 33,2% 33,585 34,347 10 Commercial 181,032 222,799 267,663 247,576 256,981 267,663 275,081 283,678 11 Farm 11,357 12,748 14,431 13,827 14,143 14,431 14,765 15,183 12 Savings institutions3 760,499 777,312 856,945 824,961 838,737 856,945 863,110 876,974 13 1- to 4-family 554,301 558,412 598,886 572,075 583,432 598,886 603,532 615,771 14 Multifamily 89,739 97,059 106,359 102,933 104,609 106,359 107,687 109,588 15 Commercial 115,771 121,236 150,943 149,183 149,938 150,943 151,136 150,863 16 Farm 688 605 n.a. n.a. n.a. n.a. n.a. n.a. 17 Life insurance companies 171,797 193,842 212,375 200,382 204,263 212,375 214,815 219,015 18 1- to 4-family 12,381 12,827 13,226 12,745 12,742 13,226 13,653 14,053 19 Multifamily 19,894 20,952 22,524 21,663 21,968 22,524 22,723 22,823 20 Commercial 127,670 149,111 166,722 155,611 159,464 166,722 168,774 172,624 21 Farm 11,852 10,952 9,903 10,363 10,089 9,903 9,665 9,515 22 Finance companies 28,902 33,601 40,349 36,898 38,328 40,349 41,409 42,518 23 Federal and related agencies 166,928 220033,,880000 192,721 196,514 191,520 192,721 1%,909 199,728 24 Government National Mortgage Association.. 1,473 888899 444 667 458 444 434 425 25 1- to 4-family 539 47 25 45 25 25 25 24 26 Multifamily 934 842 419 622 433 419 409 401 27 Farmers Home Administration 733 48,421 43,051 48,085 42,978 43,051 43,076 42,767 28 1- to 4-family 183 21,625 18,169 21,157 18,111 18,169 18,185 18,248 29 Multifamily 113 7,608 8,044 7,808 7,903 8,044 8,115 8,213 30 Commercial 159 8,446 6,603 8,553 6,592 6,603 6,640 6,288 31 Farm 278 10,742 10,235 10,567 10,372 10,235 10,136 10,018 32 Federal Housing and Veterans Administration 4,920 5,047 5,574 5,268 5,330 5,574 5,660 5,544 33 I- to 4-family 2,254 2,386 2,557 2,531 2,452 2,557 2,608 2,452 34 Multifamily 2,666 2,661 3,017 2,737 2,878 3,017 3,052 3,092 35 Federal National Mortgage Association 98,282 97,895 96,649 94,064 94,884 96,649 99,787 102,368 36 1- to 4-family 91,966 90,718 89,666 87,013 87,901 89,666 92,828 95,404 37 Multifamily 6,316 7,177 6,983 7,051 6,983 6,983 6,959 6,964 38 Federal Land Banks 47,498 39,984 34,131 35,833 34,930 34,131 33,566 33,048 39 1- to 4-family 2,798 2,353 2,008 2,108 2,055 2,008 1,975 1,945 40 Farm 44,700 37,631 32,123 33,725 32,875 32,123 31,591 31,103 41 Federal Home Loan Mortgage Corporation .. 14,022 11,564 12,872 12,597 12,940 12,872 14,386 15,576 42 1- to 4-family 11,881 10,010 11,430 11,172 11,570 11,430 12,749 13,631 43 Multifamily 2,141 1,554 1,442 1,425 1,370 1,442 1,637 1,945 44 Mortgage pools or trusts6 439,058 565,428 718,297 656,361 692,944 718,297 736,344 761,405 45 Government National Mortgage Association.. 212,145 262,697 317,555 293,246 308,339 317,555 322,976 329,976 46 1- to 4-family 207,198 256,920 309,806 286,091 300,815 309,806 315,095 321,924 47 Multifamily 4,947 5,777 7,749 7,155 7,524 7,749 7,881 8,052 48 Federal Home Loan Mortgage Corporation .. 100,387 171,372 212,634 200,284 208,872 212,634 214,724 216,155 49 1- to 4-family 99,515 166,667 205,977 194,238 202,308 205,977 208,138 209,702 50 Multifamily 872 4,705 6,657 6,046 6,564 6,657 6,586 6,453 51 Federal National Mortgage Association 54,987 97,174 139,960 121,270 130,540 139,960 145,242 157,438 52 1- to 4-family 54,036 95,791 137,988 119,617 128,770 137,988 142,330 153,253 53 Multifamily 951 1,383 1,972 1,653 1,770 1,972 2,912 4,185 54 Farmers Home Administration 47,523 348 245 342 333 245 172 106 55 1- to 4-family 22,186 142 121 149 144 121 65 23 56 Multifamily 6 675 57 Commercial 8,190 132 63 126 124 63 58 41 58 Farm 10,472 74 61 67 65 61 49 42 59 Individuals and others7 293,463 320,658 331,338 332,848 331,944 331,338 331,160 334,738 60 1- to 4-family 162,419 177,374 171,331 177,611 173,360 171,331 169,526 170,968 61 Multifamily 55,849 66,940 75,374 74,238 74,795 75,374 76,025 76,857 62 Commercial 48,692 53,315 63,275 59,038 62,131 63,275 64,407 65,811 63 Farm 26,503 23,029 21,358 21,961 21,658 21,358 21,202 21,102 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 and 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 • December 1988 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars 1987 1988 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998877 Dec. Jan. Feb. Mar. Apr. May June July' Aug. Amounts outstanding (end of period) 1 Total 571,833 613,022 613,022 619,258 624,294 629,485 633,336 636,318 644,372 647,993 653,431 By major holder 2 Commercial banks 262,139 281,564 281,564 284,753 287,344 290,831 293,166 295,546 300,275 303,189 307,232 i Finance companies 133,698 140,072 140,072 141,695 142,946 144,053 144,516 144,454 144,748 143,812 143,962 4 Credit unions 76,191 81,065 81,065 81,662 81,897 82,595 83,204 83,881 84,912 85,468 85,881 5 Retailers3 39,660 42,782 42,782 42,926 43,080 43,271 43,295 43,162 43,450 43,634 43,712 6 Savings institutions 56,881 63,949 63,949 64,633 65,3% 65,078 65,387 65,509 67,274 68,182 68,909 7 Gasoline companies 3,264 3,590 3,590 3,590 3,631 3,657 3,769 3,765 3,713 3,707 3,735 By major type of credit 8 Automobile 246,109 267,180 267,180 269,883 273,133 276,762 278,567 279,418 282,254 283,359 285,645 9 Commercial banks 100,907 108,438 108,438 109,298 111,021 113,593 114,868 115,951 117,322 118,650 120,465 10 Credit unions 38,413 43,474 43,474 43,959 44,251 44,795 45,293 45,831 46,565 47,043 47,444 11 Finance companies 92,350 98,026 98,026 99,147 100,123 100,669 100,564 99,708 99,900 98,8% 98,711 12 Savings institutions 14,439 17,242 17,242 17,479 17,738 17,705 17,841 17,928 18,465 18,770 19,026 13 Revolving 136,381 159,307 159,307 162,065 163,462 165,643 167,356 169,154 172,809 174,927 177,552 14 Commercial banks 86,757 98,808 9988,,880088 100,879 101,537 103,152 104,250 105,742 108,309 109,645 111,607 13 Retailers 34,320 36,959 3366,,995599 37,087 37,231 37,408 37,414 37,259 37,526 37,671 37,708 16 Gasoline companies 3,264 3,590 3,590 3,590 3,631 3,657 3,769 3,765 3,713 3,707 3,735 17 Savings institutions 8,366 13,279 13,279 13,601 13,945 14,059 14,309 14,518 15,098 15,492 15,850 18 Credit unions 3,674 6,671 6,671 6,908 7,117 7,368 7,614 7,870 8,162 8,413 8,652 19 Mobile home 26,883 25,957 25,957 25,926 25,857 25,732 25,764 25,703 25,852 25,882 25,912 20 Commercial banks 8,926 9,101 9,101 9,064 9,035 8,993 9,047 8,966 8,933 8,913 8,890 21 Finance companies 8,822 7,771 7,771 7,753 7,679 7,640 7,575 7,578 7,513 7,436 7,387 22 Savings institutions 9,135 9,085 9,085 9,109 9,143 9,099 9,142 9,159 9,406 9,533 9,634 23 Other 162,460 160,578 160,578 161,384 161,842 161,348 161,649 162,043 163,456 163,825 164,322 24 Commercial banks 65,549 65,217 65,217 65,512 65,750 65,094 65,001 64,887 65,710 65,981 66,270 25 Finance companies 32,526 34,275 34,275 34,795 35,144 35,744 36,376 37,168 37,335 37,480 37,863 26 Credit unions 34,104 30,920 30,920 30,795 30,529 30,432 30,297 30,180 30,184 30,012 29,785 27 Retailers 5,340 5,823 5,823 5,839 5,849 5,863 5,880 5,903 5,923 5,964 6,004 28 Savings institutions 24,941 24,343 24,343 24,444 24,570 24,216 24,095 23,904 24,305 24,388 24,399 Net change (during period) 29 Total 54,078 41,189 4,294 6,236 5,036 5,191 3,851 2,982 8,054 3,621 5,438 By major holder 30 Commercial banks 20,495 19,425 2,014 3,189 2,591 3,487 2,335 2,380 4,729 2,914 4,043 31 Finance companies 22,670 6,374 1,144 1,623 1,251 1,107 463 -62 294 -936 150 32 Credit unions 4,268 4,874 142 597 235 698 609 677 1,031 556 413 33 Retailers3 466 3,122 491 144 154 191 24 -133 288 184 78 34 Savings institutions 7,223 7,068 537 684 763 -318 309 122 1,765 908 727 35 Gasoline companies -1,044 326 -34 0 41 26 112 -4 -52 -6 28 By major type of credit 36 Automobile 36,473 21,071 2,706 2,703 3,250 3,629 1,805 851 2,836 1,105 2,286 37 Commercial banks 8,178 7,531 711 860 1,723 2,572 1,275 1,083 1,371 1,328 1,815 38 Credit unions 2,388 5,061 403 485 292 544 498 538 734 478 401 39 Finance companies 22,823 5,676 1,293 1,121 976 546 -105 -856 192 -1,004 -185 40 Savings institutions 3,084 2,803 299 237 259 -33 136 87 537 305 256 41 Revolving 14,368 22,926 2,882 2,758 1,397 2,181 1,713 1,798 3,655 2,118 2,625 42 Commercial banks 11,150 12,051 1,430 2,071 658 1,615 1,098 1,492 2,567 1,336 1,962 43 Retailers 47 2,639 458 128 144 177 6 -155 267 145 37 44 Gasoline companies -1,044 326 -34 0 41 26 112 -4 -52 -6 28 45 Savings institutions 2,078 4,913 643 322 344 114 250 209 580 394 358 46 Credit unions 2,137 2,997 385 237 209 251 246 256 292 251 239 47 Mobile home 49 -926 -647 -31 -69 -125 32 -61 149 30 30 48 Commercial banks -627 175 -68 -37 -29 -42 54 -81 -33 -20 -23 49 Finance companies -472 -1,051 -440 -18 -74 -39 -65 3 -65 -77 -49 50 Savings institutions 1,148 -50 -139 24 34 -44 43 17 247 127 101 51 Other 3,188 -1,882 -647 806 458 -494 301 394 1,413 369 497 52 Commercial banks 1.794 -332 -59 295 238 -656 -93 -114 823 271 289 53 Finance companies 319 1,749 291 520 349 600 632 792 167 145 383 54 Credit unions -257 -3,184 -646 -125 -266 -97 -135 -117 4 -172 -227 55 Retailers 419 483 33 16 10 14 17 23 20 41 40 56 Savings institutions 913 -598 -266 101 126 -354 -121 -191 401 83 11 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 1988r IItteemm 11998855 11998866 11998877 Feb. Mar. Apr. May June July Aug. INTEREST RATES Commercial banks2 1 48-month new car3 12.91 11.33 10.45 10.72 n.a. n.a. 10.55 n.a. n.a. 10.93 2 24-month personal 15.94 14.82 14.22 14.46 n.a. n.a. 14.40 n.a. n.a. 14.81 3 120-month mobile home3 14.% 13.99 13.38 13.45 n.a. n.a. 13.49 n.a. n.a. 13.62 4 Credit card 18.69 18.26 17.92 17.80 n.a. n.a. 17.78 n.a. n.a. 17.79 Auto finance companies S New car 11.98 9.44 10.73 12.26 12.24 12.29 12.29 12.32 12.44 1122..6644 6 Used car 17.59 15.95 14.60 14.75 14.77 14.82 14.81 14.83 14.99 15.16 OTHER TERMS4 Maturity (months) 7 New car 51.5 50.0 53.5 55.9 56.0 56.2 56.2 56.3 56.4 5566..55 8 Used car 41.4 42.6 45.2 46.8 46.9 46.9 46.9 46.9 46.8 46.8 Loan-to-value ratio 9 New car 91 91 93 94 94 94 94 94 94 94 10 Used car 94 97 98 99 98 98 99 99 99 98 Amount financed (dollars) 11 New car 9,915 10,665 11,203 11,447 11,493 11,553 11,624 11,626 11,663 11,593 12 Used car 6,089 6,555 7,420 7,619 7,587 7,662 7,778 7,899 7,947 7,918 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 • December 1988 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1985 1986 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998833 11998844 11998855 11998866 11998877 HI H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 546.8 750.8 846.3 830.6 680.6 724.8 967.7 686.7 974.4 651.8 709.3 695.3 Bv sector and instrument 186.6 198.8 223.6 215.0 143.8 205.6 241.7 207.7 222.3 153.4 113344..33 115566..99 3 Treasury securities 186.7 199.0 223.7 214.7 142.3 205.7 241.7 207.8 221.5 152.4 132.2 153.3 4 Agency issues and mortgages -.1 -.2 -.1 .4 1.5 -.1 -.1 -.1 .9 1.0 2.0 3.6 5 Private domestic nonfinancial sectors 360.2 552.0 622.7 615.6 536.7 519.3 726.1 479.0 752.1 498.4 575.0 538.4 6 Debt capital instruments 257.6 319.3 452.3 460.7 446.0 362.9 541.8 381.9 539.4 470.0 422.0 391.0 7 Tax-exempt obligations 53.7 50.4 136.4 30.8 34.5 67.8 204.9 -14.5 76.1 35.9 33.1 32.7 8 16.0 46.1 73.8 121.3 99.9 70.5 77.0 144.8 97.7 108.7 91.2 109.4 9 Mortgages 187.9 222.8 242.2 308.6 311.5 224.5 259.9 251.6 365.6 325.4 297.7 248.9 10 Home mortgages 120.4 136.7 156.8 210.9 221.6 143.6 169.9 171.6 250.3 233.8 209.4 184.7 11 Multifamily residential 14.1 25.2 29.8 33.5 24.3 25.5 34.1 31.8 35.2 29.2 19.5 20.0 17 51.0 62.2 62.2 73.6 72.0 58.5 65.9 58.1 89.2 71.9 72.2 48.2 13 Farm 2.4 -1.2 -6.6 -9.5 -6.4 -3.0 -10.1 -10.0 -9.0 -9.5 -3.3 -3.9 14 Other debt instruments 102.6 232.7 170.3 154.9 90.7 156.4 184.3 97.1 212.7 28.4 153.1 147.3 15 49.0 81.6 82.5 54.4 40.7 85.2 79.8 57.7 51.1 26.1 55.4 41.9 16 Bank loans n.e.c 23.2 67.1 38.6 69.3 8.8 19.0 58.3 15.6 123.1 -35.6 53.2 58.8 17 Open market paper — .8 21.7 14.6 -9.3 2.3 12.9 16.3 -15.1 -3.6 2.1 2.4 ..11 18 Other 31.3 62.2 34.6 40.5 38.9 39.3 29.9 39.0 42.0 35.8 42.1 4466..66 19 By borrowing sector 360.2 552.0 622.7 615.6 536.7 519.3 726.1 479.0 752.1 498.4 575.0 538.4 70 State and local governments 34.0 27.4 91.8 44.3 34.4 57.2 126.4 5.5 83.2 34.2 34.7 29.5 71 186.1 231.5 283.6 286.1 261.4 251.6 315.6 238.0 334.2 250.0 272.9 237.5 77 3.9 -.4 -14.5 -16.3 -11.2 -7.6 -21.4 -17.9 -14.6 -18.1 -4.3 -11.1 73 Nonfarm noncorporate 81.9 123.2 129.3 112.6 103.2 129.5 129.1 109.0 116.1 95.9 110.6 112.1 24 Corporate 54.4 170.3 132.4 188.8 148.8 88.6 176.3 144.4 233.2 136.5 161.2 170.4 25 Foreign net borrowing in United States 17.3 8.4 1.2 9.6 4.3 -5.8 8.2 22.3 -3.1 -4.4 13.1 0.5 76 Bonds 3.1 3.8 3.8 3.0 6.8 5.4 2.2 6.6 -.6 -.5 14.2 7.0 77 Bank loans n.e.c 3.6 -6.6 -2.8 -1.0 -3.6 -5.7 * 1.7 -3.8 -2.3 -4.9 -2.7 7,8 Open market paper 6.5 6.2 6.2 11.5 2.1 2.7 9.7 19.0 3.9 -5.3 9.5 3.9 29 U.S. government loans 4.1 5.0 -5.9 -3.9 -1.0 -8.3 -3.6 -5.1 -2.7 3.8 -5.7 -7.6 30 Total domestic plus foreign 564.1 759.2 847.5 840.2 684.9 719.0 975.9 709.0 971.3 647.4 722.4 695.8 Financial sectors 31 Total net borrowing by financial sectors ... 99.2 148.7 198.3 297.2 285.2 168.9 227.7 237.1 357.3 313.6 256.8 218.8 By instrument 32 U.S. government related 67.8 74.9 101.5 178.1 168.3 97.2 105.9 136.9 219.3 180.4 156.1 106.1 33 Sponsored credit agency securities 1.4 30.4 20.6 15.2 30.2 27.2 14.0 9.6 20.8 8.6 51.8 33.1 34 Mortgage pool securities 66.4 44.4 79.9 163.3 138.8 70.0 89.8 126.5 200.1 173.3 104.3 73.0 35 Loans from U.S. government 1.1 -.4 -.8 2.2 .8 -1.5 -1.5 36 Private financial sectors 31.4 73.8 96.7 119.1 116.9 71.7 121.8 100.2 138.0 133.2 100.7 112.7 37 Corporate bonds 17.3 33.0 47.9 70.9 66.8 42.3 53.5 65.8 76.1 74.4 59.2 75.5 38 Mortgages * .4 .1 .1 .3 * .1 .6 -.5 .3 .3 .1 39 Bank loans n.e.c -.1 .7 2.6 4.0 -3.3 2.8 2.3 4.7 3.3 -4.4 -2.2 3.9 40 Open market paper 21.3 24.1 32.0 24.2 28.8 13.2 50.8 13.4 35.1 47.7 9.8 25.4 41 Loans from Federal Home Loan Banks -7.0 15.7 14.2 19.8 24.4 13.3 15.1 15.7 24.0 15.3 33.6 7.8 By sector 42 Sponsored credit agencies 1.4 30.4 21.7 14.9 29.5 27.2 16.1 10.4 19.3 7.1 51.8 33.1 43 Mortgage pools 66.4 44.4 79.9 163.3 138.8 70.0 89.8 126.5 200.1 173.3 104.3 73.0 44 Private financial sectors 31.4 73.8 96.7 119.1 116.9 71.7 121.8 100.2 138.0 133.2 100.7 112.7 45 Commercial banks 5.0 7.3 -4.9 -3.6 7.1 -5.7 -4.1 -3.5 -3.8 13.2 1.0 -9.6 46 Bank affiliates 12.1 15.6 14.5 4.6 2.9 10.1 19.0 -1.8 11.1 11.5 -5.7 2.9 47 Savings and loan associations -2.1 22.7 22.3 29.8 36.0 12.0 32.7 23.1 36.4 25.1 46.9 14.2 48 Finance companies 13.0 18.2 52.7 48.4 30.3 46.3 59.2 50.7 46.1 29.0 31.7 65.9 49 REITs -.2 .8 .5 1.0 1.5 .5 .5 .3 1.6 .6 2.5 1.2 50 CMO Issuers 3.6 9.3 11.5 39.0 39.1 8.5 14.4 31.4 46.6 53.9 24.3 38.0 All sectors 51 Total net borrowing 663.4 907.9 1,045.7 1,137.4 970.1 887.9 1,203.6 946.1 1,328.7 961.0 979.2 914.5 52 U.S. government securities . 254.4 273.8 324.2 393.5 312.9 302.9 345.4 343.8 443.3 335.3 290.4 263.0 53 State and local obligations .. 53.7 50.4 136.4 30.8 34.5 67.8 204.9 -14.5 76.1 35.9 33.1 32.7 54 Corporate and foreign bonds 36.4 83.0 125.4 195.2 173.5 118.2 132.6 217.2 173.2 182.6 164.5 191.9 55 Mortgages 187.8 223.1 242.2 308.6 311.8 224.5 259.9 252.1 365.1 325.6 298.0 248.9 56 Consumer credit 49.0 81.6 82.5 54.4 40.7 85.2 79.8 57.7 51.1 26.1 55.4 41.9 57 Bank loans n.e.c 26.7 61.1 38.3 72.3 1.9 16.1 60.6 22.0 122.7 -42.4 46.1 60.0 58 Open market paper 26.9 52.0 52.8 26.4 33.2 28.9 76.7 17.3 35.5 44.6 21.8 29.4 59 Other loans 28.4 82.9 44.0 56.1 61.6 44.3 43.6 50.4 61.7 53.3 69.9 46.7 External corporate equity funds raised in United States 60 Total new share issues 58.1 -36.0 20.1 93.9 13.3 1.0 39.1 96.7 91.0 92.0 -65.4 -101.0 61 Mutual funds 77,7 29.3 84.4 161.8 72.3 61.6 107.1 151.9 171.8 142.2 2.4 3.7 62 All other 30.8 -65.3 -64.3 -68.0 -59.0 -60.6 -68.0 -55.2 -80.7 -50.2 -67.8 -104.7 63 Nonfinancial corporations 73.5 -74.5 -81.5 -80.8 -76.5 -75.5 -87.5 -68.7 -92.7 -70.0 -83.0 -117.5 64 Financial corporations 3,6 8.2 13.5 11.5 19.9 12.3 14.8 7.9 15.2 17.8 21.9 16.5 65 Foreign shares purchased in United States 3.7 .9 3.7 1.3 -2.4 2.6 4.7 5.7 -3.1 2.0 -6.7 -3.7 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. 1985 1986 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998833 11998844 11998855 11998866 11998877 HI H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to domestic nonfinancial sectors 546.8 750.8 846.3 830.6 680.6 724.8 967.7 686.7 974.4 665511..88 770099..33 669955..33 By public agencies and foreign 7 Total net advances 117.8 157.6 193.1 304.2 240.6 119977..33 118888..88 227711..33 333377..11 226600..33 222200..88 221199..55 3 U.S. government securities 29.0 38.9 37.9 69.4 68.2 48.8 27.0 76.8 62.0 57.1 79.2 93.4 4 Residential mortgages 76.1 56.5 94.6 160.3 135.6 88.8 100.5 124.2 196.4 167.3 103.9 90.7 5 FHLB advances to savings and loans -7.0 15.7 14.2 19.8 24.4 13.3 15.1 15.7 24.0 15.3 33.6 7.8 6 Other loans and securities 19.7 46.6 46.3 54.6 12.3 46.4 46.2 54.6 54.7 20.6 4.1 27.6 Total advanced, by sector 7 U.S. government 9.7 17.1 16.8 9.7 -9.7 25.1 8.4 10.8 8.5 --1100..44 --88..99 --99..00 8 Sponsored credit agencies 69.8 74.3 95.5 177.3 163.1 102.2 88.9 135.5 219.2 176.2 149.9 99.8 9 Monetary authorities 14.7 8.4 18.4 19.4 24.7 21.3 15.5 12.9 26.0 19.6 29.7 -.7 10 Foreign 23.7 57.9 62.3 97.8 62.5 48.8 75.9 112.1 83.4 75.0 50.1 129.4 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 97.2 105.9 113366..99 221199..33 118800..44 115566..11 110066..11 12 Foreign 17.3 8.4 1.2 9.6 4.3 -5.8 8.2 22.3 -3.1 -4.4 13.1 .5 Private domestic funds advanced N Total net advances 514.2 676.4 756.0 714.1 612.6 618.9 893.0 574.6 853.6 556677..55 665577..77 558822..33 14 U.S. government securities 225.4 234.9 286.2 324.1 244.7 254.0 318.5 267.0 381.2 278.2 211.2 169.6 15 State and local obligations 53.7 50.4 136.4 30.8 34.5 67.8 204.9 -14.5 76.1 35.9 33.1 32.7 16 Corporate and foreign bonds 14.5 35.1 40.8 84.1 86.5 46.0 35.7 108.3 59.8 79.6 93.3 99.6 17 Residential mortgages 58.3 105.3 91.8 84.1 110.3 80.2 103.5 79.2 89.0 95.6 124.9 113.9 18 Other mortgages and loans 155.1 266.3 214.9 210.8 161.1 184.2 245.6 150.3 271.4 93.4 228.8 174.2 19 LESS: Federal Home Loan Bank advances -7.0 15.7 14.2 19.8 24.4 13.3 15.1 15.7 24.0 15.3 33.6 7,8 Private financial intermediation 70 Credit market funds advanced by private financial 394.7 581.0 569.8 746.3 552.7 436.6 703.0 672.2 820.3 552255..11 558800..22 559900..55 71 Commercial banking 144.3 168.9 186.3 194.8 136.3 118.8 253.9 88.1 301.4 70.9 201.8 153.8 77 Savings institutions 135.6 150.2 83.0 105.5 134.2 55.9 110.1 95.5 115.6 105.3 163.2 100.8 73 Insurance and pension funds 100.1 121.8 148.9 181.7 204.1 131.4 166.4 170.3 193.1 215.9 192.4 242.4 24 Other finance 14.7 140.1 151.6 264.3 78.0 130.5 172.7 318.3 210.3 133.0 23.0 93.5 ?S Sources of funds 394.7 581.0 569.8 746.3 552.7 436.6 703.0 672.2 820.3 525.1 580.2 590.5 76 Private domestic deposits and RPs 210.4 321.9 210.6 264.7 145.9 184.7 236.4 261.8 267.6 62.1 229.6 203.5 27 Credit market borrowing 31.4 73.8 96.7 119.1 116.9 71.7 121.8 100.2 138.0 133.2 100.7 112.7 78 Other sources 152.9 185.3 262.5 362.5 289.9 180.2 344.9 310.2 414.8 329.8 250.0 274.3 79 Foreign funds 14.6 8.8 19.7 12.9 44.0 8.0 31.5 12.1 13.7 25.0 63.0 15.9 30 Treasury balances -5.3 4.0 10.3 1.7 -5.8 13.8 6.7 -4.9 8.3 3.3 -15.0 19.4 31 Insurance and pension reserves 115.0 124.0 131.9 144.3 168.5 118.9 144.9 131.3 157.2 187.1 149.8 221.6 32 Other, net 28.7 48.5 100.7 203.6 83.2 39.6 161.8 171.7 235.5 114.3 52.1 17.4 Private domestic nonfinancial investors 33 Direct lending in credit markets 150.9 169.2 282.9 86.9 176.8 254.0 311.8 22..55 117711..33 117755..66 117788..11 110044..55 34 U.S. government securities 91.0 115.4 175.7 36.9 69.6 168.6 182.8 -36.2 110.1 76.9 62.4 84.4 35 State and local obligations 38.8 26.5 39.6 -2.6 67.1 45.0 34.3 -21.8 16.7 63.4 70.9 35.6 36 Corporate and foreign bonds -8.3 -.8 2,4 34.9 9.8 8.0 -3.2 62.2 7.5 -19.4 38.9 -19.2 37 Open market paper 12.4 4.0 45.6 -3.0 7.8 15.3 75.9 -17.1 11.2 31.1 -15.5 -8.7 38 Other 17.0 24.2 19.6 20.7 22.5 17.1 22.1 15.5 25.9 23.5 21.4 12.3 39 Deposits and currency 227.8 325.4 220.9 285.0 162.0 194.5 247.2 275.4 294.7 51.4 272.7 206.3 40 Currency 14.3 8.6 12.4 14.4 19.0 16.5 8.2 11.5 17.3 11.0 27.1 11.5 41 Checkable deposits 28.8 27.9 40.9 93.2 -2.7 6.8 74.9 74.7 111.8 -29.2 23.9 14.5 47 Small time and savings accounts 215.4 150.7 138.6 120.8 75.9 162.4 114.8 113.6 128.1 50.5 101.2 149.6 43 Money market fund shares -39.0 49.0 8.9 41.5 28.2 15.5 2.2 48.6 34.4 8.4 48.0 6.1 44 Large time deposits -8.3 84.3 7.6 -11.7 27.6 -3.9 19.1 4.2 -27.5 9.2 46.0 15.3 45 Security RPs 13.5 10.0 14.6 20.8 16.9 3.9 25.4 20.7 20.8 23.2 10.5 18.0 46 Deposits in foreign countries 3.1 -5.1 -2.1 5.9 -2.8 -6.8 2.6 2.1 9.8 -21.7 16.0 -8.8 4477 Total of credit market instruments, deposits, and currency 378.7 494.6 503.7 372.0 338.9 448.5 559.0 277.9 466.0 227.0 450.8 331100..88 48 Public holdings as percent of total 20.9 20.8 22.8 36.2 35.1 27.4 19.3 38.3 34.7 40.2 30.6 31.6 49 Private financial intermediation (in percent) 76.8 85.9 75.4 104.5 90.2 70.5 78.7 117.0 96.1 92.5 88.2 101.4 50 Total foreign funds 38.2 66.7 82.0 110.7 106.5 56.7 107.4 124.2 97.2 100.0 113.1 145.3 MEMO: Corporate equities not included above SI Total net issues 58.1 -36.0 20.1 93.9 13.3 1.0 39.1 96.7 91.0 9922..00 --6655..44 --110011..00 57 Mutual fund shares 27.2 29.3 84.4 161.8 72.3 61.6 107.1 151.9 171.8 142.2 2.4 3.7 53 Other equities 30.8 -65.3 -64.3 -68.0 -59.0 -60.6 -68.0 -55.2 -80.7 -50.2 -67.8 -104.7 54 Acquisitions by financial institutions 50.4 15.8 45.6 48.5 22.6 60.4 30.7 34.9 62.1 50.9 -5.6 -21.2 55 Other net purchases 7.7 -51.8 -25.5 45.4 -9.3 -59.4 8.5 61.8 29.0 41.1 -59.8 -79.9 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 • December 1988 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1988 MMeeaassuurree 11998855 11998866 11998877 Jan. Feb. Mar. Apr. May June July Aug/ Sept. 1 Industrial production 123.7 125.1 129.8 134.4 134.4 134.7 135.4 136.1 136.5 138.1' 138.3 138.3 Market groupings 2 Products, total 130.6 133.3 138.3 142.7 143.4 143.6 144.1 145.0 145.3 146.5r 147.0 146.9 3 Final, total 131.0 132.5 136.8 141.1 141.6 141.8 142.5 143.5 144 .C 145.0f 145.6 145.5 4 Consumer goods 119.8 124.0 127.7 131.2 131.3 131.2 131.9 132.7 133.0 134. r 134.6 134.2 5 Equipment 145.8 143.6 148.8 154.3 155.3 155.9 156.5 157.7 158.5' 159.5' 160.0 160.4 6 Intermediate 129.3 136.2 143.5 148.1 149.4 149.9 149.6 150.4 150.0 151.5' 151.8 151.8 7 Materials 114.3 113.8 118.2 123.0 122.1 122.5 123.6 123.9 124.5 126.7' 126.6 126.6 Industry groupings 8 Manufacturing 126.4 129.1 134.6 139.4 139.5 140.0 140.8 141.8 142.1 143.5' 143.7 144.0 Capacity utilization (percent)2 9 Manufacturing 80.1 79.7 81.1 82.7 82.6 82.7 82.9 83.3 83.3 83.9 83.8 83.8 10 Industrial materials industries 80.3 78.6 80.5 83.0 82.3 82.4 82.9 83.0 83.2 84.4' 84.3 84.2 11 Construction contracts (1982 = 100)3 150.0 158.0 161.0 145.0 159.0 154.0 144.0 157.0 165.0 156.0 155.0 151.0 12 Nonagricultural employment, total4 118.3 120.7 124.1 126.4 127.0 127.3 127.7 127.9 128.6 128.9 129.1 129.4 13 Goods-producing, total 102.1 100.9 101.8 103.4 103.8 104.1 104.5 104.6 105.1 105.4 105.4 105.3 14 Manufacturing, total 97.8 96.3 96.8 98.4 98.5 98.6 98.8 99.0 99.3 99.5 99.4 99.3 15 Manufacturing, production-worker 92.6 91.2 92.1 93.5 93.7 93.7 93.9 94.1 94.4 94.6 94.5 94.3 16 Service-producing 125.0 129.0 133.4 136.1 136.7 137.1 137.4 137.7 138.4 138.7 139.0 139.5 17 Personal income, total 206.9 219.7 235.1 244.0 245.5 248.0 248.8 250.2 251.6 253.3 254.0 255.3 18 Wages and salary disbursements 198.8 210.7 226.2 235.7 237.3 238.9 240.9 242.3 244.2 246.7 247.2 248.6 19 Manufacturing 172.8 177.4 183.8 189.4 190.2 193.6 192.8 193.8 195.4 196.6' 196.7 198.4 20 Disposable persona] income5 205.8 218.9 232.7 242.4 244.8 247.0 243.3 249.5 251.2 252.8 253.5 254.7 21 Retail sales6 189.6 199.5 209.3 214.5 216.7 220.3 219.4 221.2 222.5 223,7r 223.5 222.6 Prices7 22 Consumer (1982-84 = 100) 107.6 109.6 113.6 115.7 116.0 116.5 117.1 117.5 118.0 118.5 119.0 119.8 23 Producer finished goods (1982 = 100) ... 104.7 103.2 105.4 106.3 106.1 106.3 107.0 107.5 107.9 108.5 108.8 108.6 1. A major revision of the industrial production index and the capacity 5. Based on data in Survey of Current Business (U.S. Department of Comutilization rates was released in July 1985. See "A Revision of the Index of merce). Industrial Production" and accompanying tables that contain revised indexes 6. Based on Bureau of Census data published in Survey of Current Business. (1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 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 Commerce, and other sources. NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6, 3. Index of dollar value of total construction contracts, including residential, and indexes for series mentioned in notes 3 and 7 may also be found in the Survey nonresidential and heavy engineering, from McGraw-Hill Information Systems of Current Business. Company, F. W. Dodge Division. Figures for industrial production for the last two months are preliminary and 4. Based on data in Employment and Earnings (U.S. Department of Labor). estimated, respectively. Series covers employees only, excluding personnel in the Armed Forces. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1988 CCaatteeggoorryy 11998855 11998866 11998877 Feb. Mar. Apr. May June July Aug.' Sept. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 180,440 182,822 185,010 186,219 186,361 186,478 186,600 186,755 186,911 187,033 187,178 2 Labor force (including Armed Forces)1 117,695 120,078 122,122 123,598 123,153 123,569 123,204 123,665 123,866 124,234 124,140 3 Civilian labor force 115,461 117,834 119,865 121,348 120,903 121,323 120,978 121,472 121,684 122,031 121,924 Employment 4 Nonagricultural industries 103,971 106,434 109,232 111,182 110,899 111,485 111,160 111,933 112,014 112,029 112,158 5 Agriculture 3,179 3,163 3,208 3,228 3,204 3,228 3,035 3,085 3,046 3,151 3,169 Unemployment 6 Number 8,312 8,237 7,425 6,938 6,801 6,610 6,783 6,455 6,625 6,851 6,5% 7 Rate (percent of civilian labor force) 7.2 7.0 6.2 5.7 5.6 5.4 5.6 5.3 5.4 5.6 5.4 8 Not in labor force 62,745 62,744 62,888 62,621 63,208 62,909 63,396 63,090 63,045 62,799 63,038 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 97,519 99,525 102,310 104,729 105,020 105,281 105,489 106,057 106,271r 106,440 106,695 10 Manufacturing 19,260 18,965 19,065 19,390 19,405 19,460 19,490 19,544 19,593r 19,574 19,556 11 Mining 927 777 721 731 733 737 739 740 740' 737 730 12 Contract construction 4,673 4,816 4,998 5,150 5,192 5,238 5,237 5,308 5,33<y 5,335 5,351 13 Transportation and public utilities 5,238 5,255 5,385 5,513 5,530 5,543 5,556 5,582 5,598r 5,602 5,625 14 Trade 23,073 23,683 24,381 25,080 25,111 25,182 25,245 25,353 25,435r 25,467 25,526 15 Finance 5,955 6,283 6,549 6,636 6,651 6,650 6,656 6,679 6,684' 6,688 6,693 16 Service 22,000 23,053 24,196 24,975 25,078 25,163 25,216 25,472 25,561' 25,632 25,6% 17 Government 16,394 16,693 17,015 17,254 17,320 17,308 17,350 17,379 17,330 17,405 17,518 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 • December 1988 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1987 1987 1988 1988 Series Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 133.2 134.5 136.0 138.2 162.2 163.1 164.2 165.2 82.1 82.4 82.8 83.7 2 Mining.. 104.3 102.5 103.3 104.8 128.4 127.7 127.0 126.2 81.2 80.3 81.5' 83.1 3 Utilities. 112.3 114.7 111.7 114.9 139.4 139.8 140.1 140.4 80.6 82.0 79.Y 81.8 4 Manufacturing. 138.1 139.6 141.6 167.7 168.9 170.2 171.5 82.3 82.7 83.2 83.8 5 Primary processing... 122.2 123.0 123.9 125.7 140.6 141.6 142.7 143.9 86.9 86.9 86.8 87.4 6 Advanced processing. 147.6 149.7 152.3 154.5 184.1 185.6 186.7 188.1 80.1 80.7 81.5 82.2 7 Materials 122.5 122.5 124.0 126.6 147.8 148.5 149.3 150.1 82.9 82.5 83.0 84.3 8 Durable goods 130.3 131.5 134.2 136.9 164.7 165.7 166.8 167.9 79.1 79.4 80.4 81.5 9 Metal materials 91.4 86.2 88.1 92.4 108.9 108.8 109.1 109.4 84.0 79.2 80.8 84.5 10 Nondurable goods 130.1 129.4 130.5 132.4 145.6 146.8 148.3 149.8 89.3 88.1 87.9' 88.4 11 Textile, paper, and chemical 133.0 131.6 132.6 135.1 145.4 146.7 148.5 150.2 91.5 89.7 89.2r 90.0 12 Paper 145.1 145.7 145.9 146.2 147.6 149.2 99.2 98.7 97.8 13 Chemical 135.5 133.5 135.7 152.0 153.5 155.4 89.1 87.0 87.3 14 Energy materials. 102.1 100.9 100.4 103.5 119.9 119.7 119.4 119.1 85.2 84.3 84.2' 86.9 Previous cycle2 Latest cycle 1987 1988 High Low High Low Sept. Jan. Feb. Apr. May June Julyr Aug/ Sept. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 81.1 82.5 82.4 82.4 82.7 82.9 83.0 83.8 83.8 83.6 16 Mining.. 92.8 87.8 95.2 76.9 79.1 80.7 79.5 80.6 82.3 80.8 81.0 83.2 82.8 83.1 17 Utilities. 95.6 82.9 88.5 78.0 80.0 82.4 82.6 81.0 79.3 79.7 80.2 81.9 83.6 79.9 18 Manufacturing 87.7 69.9 86.5 68.0 81.3 82.7 82.6 82.7 82.9 83.3 83.3 83.9 83.8 83.8 19 Primary processing 91.9 68.3 89.1 65.0 85.1 87.1 86.6 86.9 86.9 87.0 86.6 87.8 87.2 87.2 20 Advanced processing.. 86.0 71.1 85.1 69.5 79.5 80.7 80.7 80.7 81.2 81.7 81.7 82.2 82.2 82.2 21 Materials 92.0 70.5 89.1 68.5 81.2 83.0 82.3 82.4 82.9 83.0 83.2 84.5 84.3 84.2 22 Durable goods 91.8 64.4 89.8 60.9 77.0 79.7 79.3 79.1 79.7 80.8 80.7 81.7 81.4 81.6 23 Metal materials. 99.2 67.1 93.6 45.7 78.3 80.1 79.3 78.3 79.3 82.1 80.8 84.9 84.3 84.2 24 Nondurable goods 91.1 66.7 88.1 70.7 88.7 88.8 87.3 88.3 88.7 87.7 87.6 88.9 88.1 88.1 25 Textile, paper, and chemical 92.8 64.8 89.4 68.8 90.7 90.8 88.5 89.9 90.1 88.8 88.9 90.3 89.8 89.8 26 Paper 98.4 70.6 97.3 79.9 98.5 100.6 97.8 97.8 98.1 98.1 97.2 98.7 97.5 27 Chemical 92.5 64.4 87.9 63.5 87.4 87.8 85.7 87.5 88.0 86.9 87.0 88.6 88.6 28 Energy materials. 94.6 86.9 94.0 82.3 83.5 84.7 84.1 84.1 84.5 83.3 84.4 86.2 87.3 86.3 1. These data also appear in the Board's G.3 (402) release. For address, see 2. Monthly high 1973; monthly low 1975. inside front cover. 3. Monthly highs 1978 through 1980; monthly lows 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted 1977 1987 1988 1987 GGrroouuppss por- aavvgg.. tion Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June' July Aug." SSeepptt..'' Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 129.8 131.0 132.5 133.2 133.9 134.4 134.4 134.7 135.4 136.1 136.5 138.1 138.3 138.3 ? 57.72 138.3 139.4 140.9 141.0 141.3 142.7 143.4 143.6 144.1 145.0 145.3 146.5 147.0 146.9 Final products 44.77 136.8 137.8 139.3 139.2 139.8 141.1 141.6 141.8 142.5 143.5 144.0 145.0 145.6 145.5 4 Consumer goods 25.52 127.7 127.7 129.0 129.4 129.8 131.2 131.3 131.2 131.9 132.7 133.0 134.1 134.6 134.2 5 Equipment 19.25 148.8 151.2 153.0 152.2 153.1 154.3 155.3 155.9 156.5 157.7 158.5 159.5 160.0 160.4 6 Intermediate products 12.94 143.4 144.9 146.1 147.3 146.5 148.1 149.4 149.9 149.6 150.4 150.0 151.5 151.8 151.8 7 Materials 42.28 118.2 119.7 121.2 122.5 123.7 123.0 122.1 122.5 123.6 123.9 124.5 126.7 126.6 126.6 Consumer goods 8 Durable consumer goods 6.89 120.2 118.6 124.3 123.9 120.3 121.7 120.6 120.4 123.3 125.6 125.3 125.3 112266..33 112266..33 9 Automotive products 2.98 118.5 114.2 124.3 121.3 115.4 118.7 117.6 120.6 121.9 127.1 127.1 124.4 125.4 126.7 in Autos and trucks 1.79 115.1 107.2 122.2 118.7 110.2 112.8 111.8 116.4 118.0 126.9 125.3 120.8 122.8 124.7 ii Autos, consumer 1.16 90.7 79.1 94.7 91.9 83.7 77.5 79.5 86.3 91.0 98.9 99.0 93.8 92.6 97.4 I? Trucks, consumer .63 160.5 159.4 173.2 168.5 159.5 178.3 171.6 172.2 168.2 178.9 174.1 170.7 178.9 N Auto parts and allied goods 1.19 123.5 124.8 127.5 125.2 123.3 127.7 126.4 126.9 127.8 127.4 129.7 129.9 129.3 129.7 14 Home goods 3.91 121.6 121.9 124.3 125.8 123.9 124.0 122.8 120.2 124.3 124.4 123.9 125.9 126.9 126.1 N Appliances, A/C and TV 1.24 141.5 141.8 145.7 150.1 142.7 142.2 140.6 132.8 143.2 142.2 138.0 143.3 146.5 143.7 16 Appliances and TV 1.19 142.1 140.6 146.1 150.5 142.6 140.9 141.4 132.7 142.2 143.0 137.1 143.8 146.1 17 Carpeting and furniture .96 130.7 131.6 132.9 133.5 133.9 134.2 132.3 133.1 133.1 135.8 135.9 136.5 136.6 18 Miscellaneous home goods 1.71 102.0 102.2 104.1 103.9 104.8 105.2 104.7 103.9 105.7 105.2 107.0 107.4 107.4 19 Nondurable consumer goods 18.63 130.5 131.0 130.8 131.5 133.3 134.7 135.3 135.1 135.1 135.4 135.8 137.4 137.7 137.2 70 Consumer staples 15.29 137.3 137.8 137.4 138.3 140.7 142.3 142.9 142.5 142.5 143.1 143.5 145.3 145.7 145.0 71 Consumer foods and tobacco 7.80 136.2 137.0 137.5 137.3 139.2 140.3 140.8 139.4 138.3 139.2 139.3 140.9 140.5 7? Nonfood staples 7.49 138.5 138.6 137.2 139.4 142.2 144.3 145.0 145.7 146.8 147.0 147.9 149.8 151.1 149.8 n Consumer chemical products 2.75 162.9 163.6 160.0 163.5 167.7 170.7 171.7 172.7 175.6 177.9 179.5 181.8 183.8 74 Consumer paper products 1.88 151.8 153.2 151.8 152.8 157.0 157.1 157.5 159.1 161.4 162.4 162.8 164.0 163.5 7 ?* 6 > Co C n o su n m su e m r e e r n f e u rg el y 2 1 . . 8 4 6 4 1 9 0 3 6 . . 1 3 1 9 0 1 5 . . 6 0 1 9 0 2 5 . . 4 8 1 9 0 3 7 . . 2 4 1 9 0 5 8 . . 4 0 1 9 1 5 0 . . 4 6 1 9 1 7 1 . . 0 3 1 9 1 7 1 . . 9 0 1 9 0 8 9 . . 9 6 1 9 0 4 7 . . 3 3 1 9 0 3 7 . . 0 7 1 9 0 4 9 . . 6 8 1 9 1 5 1 . . 3 6 27 Residential utilities 1.42 119.8 118.7 119.4 121.8 120.7 126.0 125.8 124.5 120.5 120.6 122.6 125.4 Equipment 78 Business and defense equipment 18.01 153.6 155.2 157.2 156.6 157.8 159.2 160.3 160.8 116611..44 116622..77 116633..55 116644..66 116655..22 116655..77 79 Business equipment 14.34 144.5 146.3 148.7 148.3 149.8 151.2 152.4 153.3 154.6 156.9 158.1 159.4 160.3 161.0 30 Construction, mining, and farm 2.08 62.2 66.1 66.5 66.3 67.4 67.1 67.6 68.3 70.8 71.8 72.4 73.5 73.7 74.1 31 Manufacturing 3.27 117.9 122.0 120.5 120.6 122.2 125.4 124.9 127.0 127.7 128.3 130.3 133.5 135.6 137.4 V Power 1.27 82.6 81.1 83.0 83.1 84.2 86.2 88.3 87.8 87.0 87.4 88.3 89.8 90.7 91.3 Commercial 5.22 226.5 229.1 232.4 232.1 235.5 238.0 240.3 239.9 241.5 245.7 247.1 247.8 248.6 249.0 34 Transit 2.49 108.4 105.1 112.5 111.2 109.1 106.5 108.2 111.1 112.3 115.3 115.7 115.9 115.5 115.9 35 Defense and space equipment 3.67 188.9 189.8 190.3 188.7 188.9 190.6 191.0 189.9 187.9 185.5 184.6 184.9 184.4 183.9 Intermediate products 36 Construction supplies 5.95 131.5 132.3 133.3 134.2 133.8 136.8 137.7 137.3 137.6 138.8 137.6 138.3 113377..77 113377..88 37 Business supplies 6.99 153.5 155.6 157.1 158.4 157.4 157.8 159.4 160.7 159.9 160.3 160.6 162.7 163.8 38 General business supplies 5.67 158.6 160.9 162.3 164.3 163.3 163.1 165.0 166.6 165.7 165.5 165.9 168.5 169.4 39 Commercial energy products 1.31 131.1 132.7 134.6 132.9 131.8 135.0 135.3 135.3 134.6 137.8 137.5 137.9 139.6 Materials 40 Durable goods materials 20.50 125.0 126.4 128.7 130.2 132.0 131.8 131.4 131.3 132.7 134.8 134.9 136.8 113366..77 113377..22 41 Durable consumer parts 4.92 100.9 99.0 102.3 103.1 104.6 104.7 104.4 103.5 106.2 110.0 110.3 110.3 110.0 111.3 4? Equipment parts 5.94 159.0 161.1 162.2 163.2 165.3 167.4 167.6 167.3 168.9 170.8 171.6 173.7 173.6 174.3 43 Durable materials n.e.c 9.64 116.4 118.9 121.6 123.6 125.5 123.7 123.0 123.4 124.0 125.3 124.8 127.6 127.7 127.7 44 Basic metal materials 4.64 86.7 91.3 95.3 96.5 100.0 92.9 91.4 90.5 91.6 94.8 93.7 98.4 98.5 98.0 45 Nondurable goods materials 10.09 125.8 128.6 128.2 129.6 132.5 129.9 128.1 130.1 131.1 130.1 130.1 132.7 132.0 132.4 46 Textile, paper, and chemical materials 7.53 127.6 131.2 131.0 132.3 135.6 132.7 129.9 132.4 133.3 131.9 132.1 135.1 134.9 113355..44 47 Textile materials 1.52 111.7 116.0 113.0 112.7 113.6 112.6 110.2 112.7 111.9 107.5 107.5 108.2 109.3 48 Pulp and paper materials 1.55 141.0 143.3 142.0 144.4 149.0 148.0 144.4 144.8 145.8 146.4 145.4 150.2 146.9 49 Chemical materials 4.46 128.4 132.2 133.4 134.7 138.4 134.2 131.5 134.8 136.2 135.1 135.8 139.1 139.4 50 Miscellaneous nondurable materials ... 2.57 120.4 120.9 119.7 121.7 123.3 121.8 123.0 123.2 124.6 125.1 124.2 125.7 51 Energy materials 11.69 99.8 100.2 101.8 102.8 101.7 101.4 100.6 100.6 101.0 99.5 101.3 103.7 104.0 102.8 57 Primary energy 7.57 105.0 104.6 106.8 108.4 107.7 107.3 104.8 105.0 106.7 104.0 105.6 108.1 107.9 53 Converted fuel materials 4.12 90.3 92.2 92.7 92.6 90.7 90.6 93.0 92.6 90.5 91.2 93.5 95.6 96.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • December 1988 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1987 1988 SSIICC 11997777 11998877 Groups ccooddee pprr tt oo iioo pp nn oo rr-- aavvgg.. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July Aug." Sept.' Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 104.3 105.4 106.8 107.9 107.3 107.8 106.8 106.7 107.1 106.0 106.8 108.9 109.4 107.6 2 Mining 9.83 100.7 101.9 103.6 104.6 104.6 103.3 101.5 102.7 104.7 102.6 103.0 105.3 104.5 104.7 3 Utilities 5.96 110.3 111.2 112.1 113.2 111.7 115.2 115.6 113.3 111.0 111.6 113.2 115.0 117.4 112.3 4 Manufacturing 84.21 134.6 135.7 137.3 137.9 138.9 139.4 139.5 140.0 140.8 141.8 142.1 143.5 143.7 144.0 5 Nondurable 35.11 136.7 138.6 138.1 139.6 141.3 141.4 141.1 141.7 142.3 142.1 142.6 144.4 144.3 144.6 6 Durable 49.10 133.1 133.7 136.8 136.7 137.3 137.9 138.4 138.8 139.7 141.5 141.7 142.9 143.2 143.6 Mining 7 Metal 10 .50 77.5 86.5 85.6 90.4 96.5 91.5 83.9 84.9 86.9 86.0 82.2 93.5 8 Coal 11.12 1.60 131.8 133.3 140.3 142.9 140.6 140.2 133.7 129.1 136.0 127.8 126.9 141.5 137.2 141.9 9 Oil and gas extraction 13 7.07 92.7 93.3 94.1 94.2 94.1 93.1 92.4 94.8 95.5 94.6 95.8 94.7 94.6 10 Stone and earth minerals 14 .66 128.2 130.0 131.0 134.1 135.6 132.1 134.3 136.9 141.2 140.1 137.4 140.3 138.6 Nondurable manufactures 11 Foods 20 7.96 137.7 139.5 138.0 138.9 140.1 141.2 141.9 141.1 140.3 141.0 141.3 142.9 142.7 12 Tobacco products 21 .62 103.4 101.7 103.7 106.5 110.5 105.8 107.0 107.2 107.2 107.2 104.5 100.3 13 Textile mill products 22 2.29 115.8 118.2 116.8 117.3 118.2 116.2 115.3 117.0 117.3 114.6 114.3 116.0 116.1 14 Apparel products 23 2.79 107.4 107.6 108.0 109.4 107.8 108.7 108.5 108.7 109.2 108.6 109.3 109.4 15 Paper and products 26 3.15 144.4 147.4 146.0 148.3 150.6 149.9 148.0 149.1 149.2 149.5 148.6 152.3 149.3 16 Printing and publishing 27 4.54 172.0 174.9 175.2 175.7 176.9 177.5 178.7 180.4 181.8 180.7 182.3 184.2 184.8 185.5 17 Chemicals and products 28 8.05 140.1 142.4 141.5 144.4 147.9 147.9 145.4 146.4 148.9 149.1 150.5 153.3 154.1 18 Petroleum products 29 2.40 93.5 93.5 94.6 93.3 96.1 96.3 95.9 98.4 98.5 95.2 94.1 95.0 94.9 94.8 19 Rubber and plastic products 30 2.80 163.6 165.2 166.7 169.9 170.6 170.5 172.3 172.2 172.3 173.4 174.4 175.6 175.8 20 Leather and products 31 .53 60.0 60.7 59.6 60.7 57.5 58.3 59.7 59.5 58.0 57.1 58.9 59.1 59.3 Durable manufactures 21 Lumber and products 24 2.30 130.3 126.9 129.8 134.0 133.6 136.3 139.0 137.8 138.0 139.8 136.4 136.9 134.0 22 Furniture and fixtures 25 1.27 152.8 155.9 156.0 158.5 159.4 158.0 158.3 159.4 159.2 160.5 161.2 163.4 162.2 23 Clay, glass, and stone products. 32 2.72 119.1 118.6 118.9 120.5 120.1 120.4 121.6 122.5 121.4 121.5 123.4 122.0 121.8 24 Primary metals 33 5.33 81.5 84.5 90.6 90.2 90.6 86.5 86.4 85.1 85.3 89.2 87.5 91.7 91.9 91.6 2 2 5 6 Fa I b r r o i n c a a te n d d m ste e e ta l l products 331 3 .2 4 3 6. . 4 4 6 9 17101..80 17141..61 1 8 1 2 3 . . 0 5 1 7 1 9 3 . . 7 6 1 8 1 1 5 . . 9 8 1 7 1 7 7 . . 8 1 1 7 1 7 7 . . 4 6 1 7 1 4 8 . . 2 8 1 7 1 4 8 . . 5 8 1 7 1 8 9 . . 6 8 1 7 2 4 0 . . 2 4 1 8 2 0 1 . . 2 9 1 7 2 9 2 . . 7 2 122.7 27 Nonelectrical machinery 35 9.54 152.7 156.6 158.0 157.2 161.0 162.9 163.6 164.6 167.2 170.3 171.2 173.1 174.1 175.4 28 Electrical machinery 36 7.15 172.3 173.4 175.5 175.6 175.9 177.4 177.8 176.6 178.7 179.1 179.5 181.3 182.6 182.5 29 Transportation equipment 37 9.13 129.2 125.5 132.0 130.4 128.1 128.6 128.4 130.0 130.4 133.1 132.8 131.9 131.8 132.3 30 Motor vehicles and parts 371 5.25 111.8 105.6 116.0 114.0 110.2 109.7 109.3 113.0 114.8 119.6 119.1 116.6 117.3 118.7 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 152.8 152.5 153.7 152.7 152.4 154.2 154.5 153.0 151.5 151.5 151.4 152.7 151.5 150.8 32 Instruments 38 2.66 143.9 145.6 146.7 147.8 145.5 148.2 149.2 149.7 150.5 151.3 153.0 156.0 156.2 156.2 33 Miscellaneous manufactures..., 39 1.46 102.6 102.1 104.6 104.5 105.6 105.0 104.4 105.1 105.9 106.0 107.6 107.5 107.8 Utilities 34 Electric 44..1177 112266..66 112277..55 112266..88 112277..55 112255..66 113300..33 113300..77 112299..00 112277..66 112299..77 113322..11 113344..66 113377..55 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,735.8 1,735.9 1,774.1 1,772.4 1,778.8 1,790.6 1,797.5 1,807.5 1,812.2 1,820.1 1,813.9 1,822.6 1,826.3 1,826.6 36 Final 405.7 1,333.8 1,330.3 1,360.9 1,359.9 1,359.4 1,375.5 1,381.1 1,385.9 1,393.9 1,397.1 1,394.3 1,399.2 1,402.5 1,403.0 37 Consumer goods 272.7 866.0 856.9 876.6 879.8 881.2 893.6 893.7 893.2 899.1 898.9 893.6 895.7 898.6 896.1 38 Equipment 133.0 467.8 473.4 484.4 480.1 478.2 481.9 487.3 492.7 494.7 498.3 500.7 503.5 503.9 506.9 39 Intermediate 111.9 402.0 405.6 413.2 412.5 419.4 415.1 416.5 421.6 418.4 423.0 419.6 423.4 423.8 423.6 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 Nov. Dec. Jan. Feb. Mar. Apr. May June' July' Aug. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,733 1,750 1,535 1,459 1,372 1,248 1,429 1,476 1,449 1,436 1,493 1,420 1,464 ? 1-family 957 1,071 1,024 971 957 918 1,003 1,030 960 982 1,002 984 1,022 3 2-or-more-family 777 679 511 488 415 330 426 446 489 454 491 436 442 4 Started 1,742 1,805 1,621 1,661 1,399 1,382 1,519 1,529 1,584 1,393 1,465 1,477 1,431 1-family 1,072 1,179 1,146 1,129 1,035 1,016 1,102 1,172 1,093 1,004 1,092 1,068 1,075 6 2-or-more-family 669 626 474 532 364 366 417 357 491 389 373 409 356 7 Under construction, end of period1 . 1,063 1,074 987 1,042 1,016 1,008 983 999 999 984 982 977 968 8 539 583 591 625 618 614 596 617 622 610 609 608 609 9 2-or-more-family 524 490 397 417 398 394 387 382 377 374 373 369 359 10 Completed 1,703 1,756 1,669 1,571 1,624 1,550 1,452 1,598 1,665 1,450 1,518 1,529 1,510 11 1-family 1,072 1,120 1,123 1,088 1,104 1,098 1,043 1,094 1,059 1,090 1,106 1,076 1,048 12 2-or-more-family 631 637 546 483 520 452 409 504 606 360 412 453 462 13 Mobile homes shipped 284 244 233 222 227 200 208 212 213 216 230 206 223 Merchant builder activity in l-family units 14 Number sold 688 748 672 625 586 579 648 664 681 668811'' 771133 771122 771133 15 Number for sale, end of period1 350 361 370 362 365 368 359 372 367 370 367 365 365 Price (thousands of dollarsj1 Median 16 Units sold 84.3 92.2 104.7 117.0 111.8 119.0 110.9 108.9 111.0 110.0' 112.5 112200..00 111122..00 17 Units sold 101.0 112.2 127.9 139.2 136.2 144.4 137.6 133.2 135.6 133.5' 136.6 142.3 145.2 EXISTING UNITS (l-family) 18 Number sold 3,217 3,566 3,530 3,370 3,330 3,170 3,250 3,330 3,520 3,590 3,820 3,630 3,710 Price of units sold (thousands of dollars) 19 Median 75.4 80.3 85.6 85.0 8855..44 8877..44 88.1 8877..99 8877..33 88.8 9900..22 9900..77 9911..44 20 Average 90.6 98.3 106.2 106.6 107.1 108.7 110.4 110.7 108.7 111.9 115.4 114.8 115.1 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 355,735 386,093 398,848 407,066 410,870 395,264 392,456 403,555 396,238r 398,473' 395,714 398,339 396,111 V Private 291,665 314,651 323,819 331,497 331,641 321,550 317,754 324,257 318,515R 320,194' 317,708 319,099 318,620 73 Residential 158,475 187,147 194,772 195,599 195,822 195,168 192,097 195,554 192,026' 190,374' 188,071 189,441 190,804 24 Nonresidential, total 133,190 127,504 129,047 135,898 135,819 126,382 125,657 128,703 126,489R 129,820' 129,637 129,658 127,816 Buildings ?S Industrial 15,769 13,747 13,707 14,512 14,130 13,480 13,489 14,546 1133,,884499'' 1133,,990077'' 13,676 1133,,111188 1122,,772200 76 Commercial 59,629 56,762 55,448 59,374 55,831 53,555 53,571 54,843 56,169' 57,447' 56,585 56,547 54,858 77 Other 12,619 13,216 15,464 16,692 17,708 16,954 17,101 17,301 16,382' 16,847' 16,757 16,193 16,370 28 Public utilities and other 45,173 43,779 44,428 45,320 48,150 42,393 41,496 42,013 40,089' 41,619' 42,619 43,800 43,868 79 Public 64,070 71,437 75,028 75,569 79,228 73,715 74,702 79,298 77,723' 78,278' 78,007 79,240 77,491 30 Military 3,235 3,868 4,327 5,080 4,879 4,172 3,280 4,216 3,872' 3,547' 4,844 4,182 4,085 31 Highway 21,540 22,681 22,758 23,439 25,274 24,808 25,348 26,963 26,912' 25,254' 24,822 27,568 24,126 32 Conservation and development... 4,777 4,646 5,162 4,871 5,759 4,038 4,535 4,899 4,226' 4,460' 4,596 4,873 4,900 33 Other 34,518 40,242 42,781 42,179 43,316 40,697 41,539 43,220 42,713' 45,017' 43,745 42,617 44,380 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 previous 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 ana 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 • December 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 IIIttteeemmm llleeevvveeelll 1987 1988 1988 SSSeeepppttt... 11998877 11998888 111999888888''' SSeepptt.. SSeepptt.. Dec. Mar. June Sept. May June July Aug. Sept. CONSUMER PRICES2 (1982-84=100) 1 All items 4.4 4.2 3.2 4.2 4.5 4.8 .3 .3 .4 .4 .3 119.8 2 Food 3.6 5.3 2.8 1.4 7.1 9.9 .4 .6 1.0 .6 .8 120.2 3 Energy items 7.5 -.4 -3.9 -4.9 4.2 2.7 .5 -.2 .3 .9 -.6 91.9 4 All items less food and energy 4.3 4.4 4.4 5.4 4.3 4.0 .2 .4 .3 .2 .4 124.7 5 Commodities 3.5 3.5 2.5 4.7 3.9 3.1 .2 .2 .3 -.3 .8 116.9 6 Services 4.7 5.0 5.0 5.9 4.5 4.1 .4 .5 .4 .5 .1 129.3 PRODUCER PRICES (1982=100) 7 Finished goods 3.2 2.7 -1.9 2.7 4.6 5.7 .4 .4 .5 .6 .4 108.6 8 Consumer foods 1.3 4.3 -5.7 6.0 9.4 8.8 r 1.2R .4 .4 1.2 115.2 9 Consumer energy 10.6 -7.3 -9.6 -18.5 4.8 -4.6 .3' -1.8r .0 2.2 -3.3 58.8 10 Other consumer goods 3.4 4.2 1.7 5.7 2.4 6.6 .3 .3 .9 .3 .4 118.9 11 Capital equipment 2.3 2.8 -.7 3.2 3.6 5.4 .3' .4 .1 .4 .8 114.3 12 Intermediate materials3 4.2 5.4 4.3 4.3 7.4 5.3 .1' .5' .6 .4 .4 108.4 13 Excluding energy 3.5 7.4 7.2 8.2 6.9 7.2 .5' .4' .7 .4 .6 116.7 Crude materials 14 Foods 2.5 15.4 -4.8 17.7 30.5 23.5 2.T "i.V 1.5 2.2 1.6 111.5 15 Energy 15.2 -15.4 -15.2 -24.1 12.2 -29.0 1.1 -1.0 -5.4 .1 -3.1 64.9 16 Other 22.4 8.5 18.0 15.9 -7.0 9.2 -i.r .V 1.9 .9 -.6 133.4 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 Account 1985 1987 Q3 Q4 Q1 Q2 GROSS NATIONAL PRODUCT 1 Total 4,014.9 4,240.3 4,526.7 4,568.0 4,662.8 4,724.5 4,823.8 By source 2 Personal consumption expenditures 2,629.0 2,807.5 3,012.1 3,058.2 3.076.3 3.128.1 3,194.6 3 Durable goods 372.2 406.5 421.9 441.4 422.0 437.8 449.8 4 Nondurable goods 911.2 943.6 997.9 1,006.6 1.012.4 1.016.2 1,036.6 5 Services 1,345.6 1,457.3 1,592.3 1,610.2 1,641.9 1,674.1 1,708.2 6 Gross private domestic investment 643.1 665.9 712.9 702.8 764.9 763.4 758.1 7 Fixed investment 631.8 650.4 673.7 688.3 692.9 698.1 714.4 8 Nonresidential 442.9 433.9 446.8 462.1 464.1 471.5 487.8 9 Structures 153.2 138.5 139.5 143.0 147.7 140.1 142.3 10 Producers' durable equipment 289.7 295.4 307.3 319.1 316.3 331.3 345.5 11 Residential structures 188.8 216.6 226.9 226.2 228.8 226.6 226.5 12 Change in business inventories 11.3 15.5 39.2 14.5 72.0 65.3 43.7 13 Nonfarm 14.6 17.4 40.7 17.8 72.8 49.4 33.1 14 Net exports of goods and services -78.0 -104.4 -123.0 -125.2 -125.7 -112.1 -90.4 15 Exports 370.9 378.4 428.0 440.4 459.7 487.8 507.1 16 Imports 448.9 482.8 551.1 565.6 585.4 599.9 597.5 17 Government purchases of goods and services .. 820.8 871.2 924.7 932.2 947.3 945.2 961.6 18 Federal 355.2 366.2 382.0 386.3 391.4 377.7 382.2 19 State and local 465.6 505.0 542.8 546.0 555.9 567.5 579.4 By major type of product 20 Final sales, total 4,003.6 4,224.7 4,487.5 4,553.5 4,590.7 4,659.2 4,780.1 21 Goods 1.641.2 1,697.9 1,792.5 1,812.9 1,849.4 1,879.4 1,928.0 22 Durable 706.5 725.3 776.3 792.2 808.7 819.3 849.5 23 Nondurable 934.6 972.6 1,016.3 1,020.7 1,040.7 1,060.1 1,078.5 24 Services 1.968.3 2,118.3 2,295.7 2,314.4 2,363.9 2,405.2 2,451.5 25 Structures 405.4 424.0 438.4 440.6 449.5 439.9 444.3 26 Change in business inventories 11.3 15.5 39.2 14.5 72.0 65.3 43.7 27 Durable goods 6.4 4.2 26.6 2.9 50.5 26.6 17.8 28 Nondurable goods 4.9 11.3 12.6 11.6 21.6 38.6 25.9 MEMO 3,618.7 3,721.7 3,847.0 3,865.3 3,923.0 3,956.1 3,985.2 29 Total GNP in 1982 dollars NATIONAL INCOME 3,234.0 3,437.1 3,678.7 3.708.0 3,802.0 3,850.8 3,928.8 30 Total 2,367.5 2,507.1 2,683.4 2,702.8 2,769.9 2,816.4 2,874.0 31 Compensation of employees 1,975.2 2,094.0 2,248.4 2,265.3 2,324.8 2,358.7 2.410.0 32 Wages and salaries 372.0 393.7 420.1 423.2 429.2 437.1 442.9 33 Government and government enterprises .. 1,603.4 1,700.3 1,828.3 1.842.1 1,895.6 1,921.6 1.967.1 34 Other 392.4 413.1 435.0 437.5 445.1 457.7 464.0 35 Supplement to wages and salaries 204.8 217.0 227.1 228.2 232.7 243.1 247.5 36 Employer contributions for social insurance 187.6 196.1 207.9 209.3 212.4 214.6 216.5 37 Other labor income 38 Proprietors'income1 255.9 286.7 312.9 306.8 326.0 323.9 328.8 39 Business and professional 225.6 250.3 270.0 271.5 279.0 279.2 285.3 40 Farm1 30.2 36.4 43.0 35.2 47.0 44.7 43.4 41 Rental income of persons2 9.2 12.4 18.4 18.1 20.5 20.5 19.1 42 Corporate profits' 282.3 298.9 310.4 322.0 316.1 316.2 326.5 43 Profits before tax3 224.3 236.4 276.7 289.4 281.9 286.2 305.9 44 Inventory valuation adjustment -1.7 8.3 -18.0 -19.5 -18.2 -19.4 -27.4 45 Capital consumption adjustment 59.7 54.2 51.7 52.1 52.4 49.4 48.0 46 Net interest 319.0 331.9 353.6 358.3 369.5 373.9 380.6 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 • December 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 Q3 Q4 Q1 Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 3,325.3 3,531.1 3,780.0 3,801.0 3,906.8 3,951.4 4,022.4 4,086.0 2 Wage and salary disbursements 1,975.4 2,094.0 2,248.4 2,265.1 2,325.1 2,358.7 2,410.0 2,460.0 3 Commodity-producing industries 608.9 625.5 649.8 652.8 665.5 676.0 689.1 701.4 4 Manufacturing 460.9 473.1 490.3 492.6 501.3 509.6 517.4 526.1 5 Distributive industries 473.2 498.9 531.7 536.8 547.3 558.2 572.1 585.7 6 Service industries 521.3 575.9 646.8 652.4 682.8 687.4 705.9 723.9 7 Government and government enterprises 372.0 393.7 420.1 423.0 429.5 437.1 442.9 449.0 8 Other labor income 187.6 196.1 207.9 209.3 212.4 214.6 216.5 219.5 9 Proprietors' income1 255.9 286.7 312.9 306.8 326.0 323.9 328.8 319.3 10 Business and professional 225.6 250.3 270.0 271.5 279.0 279.2 285.3 290.2 11 Farm1 30.2 36.4 43.0 35.2 47.0 44.7 43.4 29.0 12 Rental income of persons 9.2 12.4 18.4 18.1 20.5 20.5 19.1 20.0 78.7 82.8 88.6 89.9 91.9 93.5 95.0 97.3 14 Personal interest income 478.0 499.1 527.0 533.0 550.0 554.2 563.7 579.3 15 Transfer payments 489.8 521.1 548.8 551.7 556.8 576.3 582.8 587.4 16 Old-age survivors, disability, and health insurance benefits ... 253.4 269.3 282.9 284.5 286.5 298.1 300.4 303.2 17 LESS: Personal contributions for social insurance 149.3 161.1 172.0 172.7 175.9 190.2 193.5 196.7 18 EQUALS: Personal income 3,325.3 3,531.1 3,780.0 3,801.0 3,906.8 3,951.4 4,022.4 4,086.0 19 LESS: Personal tax and nontax payments 486.6 511.4 570.3 576.2 591.0 575.8 601.0 587.1 20 EQUALS: Disposable personal income 2,838.7 3,019.6 3,209.7 3,224.9 3,315.8 3,375.6 3,421.5 3,498.9 21 LESS: Personal outlays 2,713.3 2,898.0 3,105.5 3,152.3 3,171.8 3,225.7 3,293.6 3,358.6 22 EQUALS: Personal saving 125.4 121.7 104.2 72.6 144.0 149.9 127.8 140.3 MEMO Per capita (1982 dollars) 23 Gross national product 15,120.6 15,401.2 15,770.0 15,834.9 16,031.8 16,127.6 1166,,221133..11 1166,,225566..88 24 Personal consumption expenditures 9,839.4 10.160.1 10,334.3 10,426.8 10,346.1 10,435.4 10,492.2 10,552.9 25 Disposable personal income 10,625.0 10,929.0 11,012.0 10,989.0 11,145.0 11,260.0 11,237.0 11,335.0 26 Saving rate (percent) 4.4 4.0 3.2 2.3 4.3 4.4 3.7 4.0 GROSS SAVING 533.5 537.2 560.4 556.8 603.4 627.0 634.1 n.a. 28 Gross private saving 665.3 681.6 665.3 642.2 714.1 726.3 711.2 n.a. 29 Personal saving 125.4 121.7 104.2 72.6 144.0 149.9 127.8 140.3 30 Undistributed corporate profits 102.6 104.1 81.1 85.0 80.5 78.1 80.1 n.a. 31 Corporate inventory valuation adjustment -1.7 8.3 -18.0 -19.5 -18.2 -19.4 -27.4 -27.4 Capital consumption allowances 268.6 282.4 229977..55 229999..77 330033..77 330099..88 331133..33 331177..00 168.7 173.5 182.5 184.9 185.8 188.5 189.9 191.0 34 Government surplus, or deficit (-), national income and product accounts -131.8 -144.4 -104.9 -85.5 -110.7 --9999..22 --7777..11 n.a. -196.9 -205.6 -157.8 -138.3 -160.4 -155.1 -133.3 n.a. 65.1 61.2 52.9 52.9 49.7 55.8 56.2 n.a. 528.7 523.6 552.3 541.7 597.0 612.0 629.0 638.1 38 Gross private domestic 643.1 665.9 712.9 702.8 764.9 763.4 758.1 764.4 39 Net foreign -114.4 -142.4 -160.6 -161.1 -167.8 -151.3 -129.1 -126.3 40 Statistical discrepancy -4.8 -13.6 -8.1 -15.1 -6.4 -15.0 -5.1 -5.1 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A53 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1987 1988 Item credits or debits 11998855 11998866 11998877 Q2 Q3 Q4 Ql Q2" 1 Balance on current account --111155,,110022 --113388,,882277 -153,964 -40,852 -41,967 -33,523 -36,938 -33,336 2 Not seasonally adjusted -41,799 -47,330 -31,803 -32,179 -34,228 3 Merchandise trade balance2 -122,148 -144,547 -160,280 -39,552 -39,665 -41,192 -35,184 -29,937 4 Merchandise exports 215,935 223,969 249,570 59,864 64,902 68,013 75,300 79,665 5 Merchandise imports -338,083 -368,516 -409,850 -99,416 -104,567 -109,205 -110,484 -109,602 6 Military transactions, net -3,431 -4,372 -2,369 -179 -851 -1,261 -1,033 -865 7 Investment income, net 25,936 23,143 20,374 1,692 1,067 12,539 1,159 -1,747 8 Other service transactions, net -449 2,257 1,755 13 87 479 1,241 2,120 9 Remittances, pensions, and other transfers -3,786 -3,571 -3,434 -884 -855 -828 -882 -787 10 U.S. government grants (excluding military) -11,223 -11,738 -10,011 -2,241 -2,125 -3,545 -2,239 -2,120 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -2,829 -2,000 1,162 -170 252 1,012 -814 -828 12 Change in U.S. official reserve assets (increase, -) -3,858 312 9,149 3,419 32 3,741 1,503 39 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -897 -246 -509 -171 -210 -205 155 180 15 Reserve position in International Monetary Fund 908 1,500 2,070 335 407 722 446 69 16 Foreign currencies -3,869 -942 7,588 3,255 -165 3,225 901 -210 17 Change in U.S. private assets abroad (increase, -) -25,949 -96,303 -86,298 -26,127 -25,576 -43,645 5,903 -12,497 18 Bank-reported claims3 -1,323 -59,975 -40,531 -22,422 -16,519 -23,460 17,108 -13,999 19 Nonbank-reported claims 923 -4,220 3,145 2,603 -215 1,248 -315 20 U.S. purchase of foreign securities, net -7,481 -4,297 -4,456 -88 -972 -1,757 -4,467 1,610 21 U.S. direct investments abroad, net -18,068 -27,811 -44,456 -6,220 -7,870 -19,676 -6,423 -108 22 Change in foreign official assets in the United States (increase, +) -1,196 35,507 44,968 10,332 611 20,047 24,670 5,832 23 U.S. Treasury securities -838 34,364 43,361 11,083 842 19,243 27,701 5,793 24 Other U.S. government obligations -301 -1,214 1,570 256 714 662 -121 192 25 Other U.S. government liabilities4 767 2,054 -2,824 -1,309 -287 108 -123 -570 26 Other U.S. liabilities reported by U.S. banks3 645 1,187 3,901 615 -34 -223 -1,954 834 27 Other foreign official assets -1,469 -884 -1,040 -313 -624 257 -833 -417 28 Change in foreign private assets in the United States (increase, +) 131,096 185,746 166,521 40,327 71,047 36,025 1,395 56,507 29 U.S. bank-reported liabilities3 41,045 79,783 87,778 17,961 46,153 29,764 -17,233 28,839 30 U.S. nonbank-reported liabilities -366 -2,906 2,150 1,570 -116 -1,000 2,015 31 Foreign private purchases of U.S. Treasury securities, net 20,433 3,809 -7,596 -2,431 -2,835 496 6,887 4,473 32 Foreign purchases of other U.S. securities, net 50,962 70,969 42,213 15,998 12,819 -4,977 2,379 9,823 33 Foreign direct investments in the United States, net 19,022 34,091 41,976 7,229 15,026 11,742 7,347 13,372 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 17,839 15,566 18,461 13,071 -4,399 16,342 4,282 -15,717 36 Owing to seasonal adjustments -2,615 -4,658 3,138 3,747 -3,456 37 Statistical discrepancy in recorded data before seasonal adjustment 17,839 15,566 18,461 15,686 259 13,204 535 -12,261 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -3,858 312 9,149 3,419 32 3,741 1,503 39 39 Foreign official assets in the United States (increase, +) excluding line 25 — 1,963 33,453 47,792 11,641 898 19,939 24,793 6,402 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 -2,681 -1,723 -2,750 -1,375 -1,782 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 46 101 58 26 13 12 45 10 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. Reporting banks include all kinds of depository institutions besides commer- (Department of Commerce). cial banks, as well as some brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • December 1988 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are not seasonally adjusted. 1988 IItteemm 11998855 11998866 11998877 Feb. Mar. Apr. May June Julyr Aug. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 218,815 227,159 254,122 24,139 29,106 26,335 28,143 26,839 25,098 26,588 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 C.I.F. value 352,463 382,295 424,442 37,133 38,633 36,528 37,657 40,158 37,084 39,329 3 Customs value 345,276 365,438 406,241 35,569 37,030 35,027 36,147 38,590 35,583 37,708 Trade balance 4 C.I.F. value -133,648 -155,137 -170,320 -12,994 -9,528 -10,193 -9,514 -13,319 -11,986 -12,741 5 Customs value -132,129 -138,279 -152,119 -11,430 -7,924 -8,692 -8,004 -11,751 -10,485 -11,121 1. The Census basis data differ from merchandise trade data shown in table tions; military payments sire 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; the timing. On the export side, the largest adjustment is the exclusion of military sales previous month is revised to reflect late documents. Total exports and the trade (which are combined with other military transactions and reported separately in balance reflect adjustments for undocumented exports 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 1988 TTyyppee 11998855 11998866 11998877 Mar. Apr. May June July Aug. Sept." 1 Total 43,186 48,511 45,798 43,186 42,730 41,949 41,028 43,876 47,778 47,788 2 Gold stock, including Exchange Stabilization Fund1 11,090 11,064 11,078 11,063 11,063 11,063 11,063 11,063 11,061 11,062 3 Special drawing rights2'3 7,293 8,395 10,283 9,899 9,589 9,543 9,180 8,984 9,058 9,074 4 Reserve position in International Monetary Fund 11,947 11,730 11,349 10,645 10,803 10,431 9,992 9,773 9,642 9,637 5 Foreign currencies4 12,856 17,322 13,088 11,579 11,275 10,912 10,793 14,056 18,017 18,015 1. Gold held under earmark at Federal Reserve Banks for foreign and interna- 3. Includes allocations by the International Monetary Fund of SDRs as follows: tional accounts is not included in the gold stock of the United States; see table $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, 3.13. Gold stock is valued at $42.22 per fine troy ounce. 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 holdiings and reserve position in the IMF also are valued on this basis beginning July 1974. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1988 AAsssseettss 11998855 11998866 11998877 Mar. Apr. May June July Aug. Sept.p 1 Deposits 480 287 244 534 215 297 381 269 230 338 Assets held in custody 2 U.S. Treasury securities 121,004 155,835 195,126 222,407 224,725 226,341 223,127 223,296 221,715 221,119 3 Earmarked gold3 14,245 14,048 13,919 13,773 13,719 13,654 13,662 13,666 13,658 13,653 1. Excludes deposits and U.S. Treasury securities held for international and 3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce, regional organizations. Earmarked gold is gold held for foreign and international accounts and is not 2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. included in the gold stock of the United States. Treasury securities payable in dollars and in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1988 AAsssseett aaccccoouunntt Feb. Mar. Apr. May June July Aug." All foreign countries 1 Total, all currencies 458,012 456,628 518,618' 495,003 502,398 488,939 492,844 487,677 488,283 487,895 2 Claims on United States 119,706 114,563 138,034 131,032 135,504 139,176 141,789 140,932 147,662 157,021 Parent bank 87,201 83,492 105,845 94,348 99,109 102,957 104,299 104,405 109,929 117,525 4 Other banks in United States 13,057 13,685 16,416 15,028 14,663 13,332 14,624 14,424 15,954 16,176 5 Nonbanks 19,448 17,386 15,773 21,656 21,732 22,887 22,866 22,103 21,779 23,320 6 Claims on foreigners 315,676 312,955 342,520' 326,633 328,163 314,348 315,303 311,321 305,556 295,254 7 Other branches of parent bank 91,399 96,281 122,155 111,671 108,972 103,090 102,931 106,722 103,638 98,299 8 Banks 102,960 105,237 108,859' 105,584 106,771 101,236 103,429 100,686 99,663 98,996 9 Public borrowers 23,478 23,706 21,832' 21,331 21,748 20,827 20,991 20,438 19,276 18,709 10 Nonbank foreigners 97,839 87,731 89,674' 88,047 90,672 89,195 87,952 83,475 82,979 79,250 11 Other assets 22,630 29,110 38,064 37,338 38,731 35,415 35,752 35,424 35,065 35,620 12 Total payable in U.S. dollars 336,520 317,487 350,107' 330,726 333,874 327,736 334,112 334,990' 336,233 342,906 n Claims on United States 116,638 110,620 132,023 124,806 128,935 133,289 136,077 135,348 141,415 151,581 14 Parent bank 85,971 82,082 103,251 91,271 95,844 100,320 101,578 101,422 106,792 114,943 15 Other banks in United States 12,454 12,830 14,657 13,906 13,346 12,318 13,599 13,661 14,434 14,901 16 Nonbanks 18,213 15,708 14,115 19,629 19,745 20,651 20,900 20,265 20,189 21,737 17 Claims on foreigners 210,129 195,063 202,428' 190,902 190,593 179,722 182,981 183,568' 179,076 174,433 18 Other branches of parent bank 72,727 72,197 88,284 83,063 81,692 75,654 76,136 79,774 78,063 73,792 19 Banks 71,868 66,421 63,707' 58,161 58,109 54,588 57,102 55,234 54,189 54,847 20 Public borrowers 17,260 16,708 14,730 14,645 14,853 14,407 14,342 13,851' 13,247 12,933 21 Nonbank foreigners 48,274 39,737 35,707 35,033 35,939 35,073 35,401 34,709 33,577 32,861 22 Other assets 9,753 11,804 15,656 15,018 14,346 14,725 15,054 16,074 15,742 16,892 United Kingdom 23 Total, all currencies 148,599 140,917 158,695 157,634 155,657 152,592 156,184 151,835 151,017 149,646 24 Claims on United States 33,157 24,599 32,518 32,869 29,581 31,618 32,832 33,852 35,708 36,307 25 Parent bank 26,970 19,085 27,350 27,484 24,580 26,155 27,506 28,535 30,615 30,767 26 Other banks in United States 1,106 1,612 1,259 1,527 1,191 1,013 1,360 1,322 1,064 1,197 27 Nonbanks 5,081 3,902 3,909 3,858 3,810 4,450 3,966 3,995 4,029 4,343 28 Claims on foreigners 110,217 109,508 115,700 115,489 116,975 112,261 114,452 107,856 105,594 103,527 29 Other branches of parent bank 31,576 33,422 39,903 38,077 34,278 33,019 33,849 32,446 30,228 29,656 30 Banks 39,250 39,468 36,735 38,654 40,247 38,790 39,883 37,108 37,805 38,259 31 Public borrowers 5,644 4,990 4,752 4,613 5,312 4,914 4,987 4,742 4,665 4,543 32 Nonbank foreigners 33,747 31,628 34,310 34,145 37,138 35,538 35,733 33,560 32,896 31,069 33 Other assets 5,225 6,810 10,477 9,276 9,101 8,713 8,900 10,127 9,715 9,812 34 Total payable in U.S. dollars 108,626 95,028 100,574 101,642 95,972 93,214 97,188 95,326 94,492 96,767 35 Claims on United States 32,092 23,193 30,439 30,971 27,388 29,555 30,736 31,855 33,795 34,535 36 Parent bank 26,568 18,526 26,304 26,565 23,285 25,137 26,608 27,672 29,706 29,837 37 Other banks in United States 1,005 1,475 1,044 1,273 1,025 781 1,068 1,069 870 1,039 38 Nonbanks 4,519 3,192 3,091 3,133 3,078 3,637 3,060 3,114 3,219 3,659 39 Claims on foreigners 73,475 68,138 64,560 66,313 64,247 59,434 62,018 57,969 55,832 57,037 40 Other branches of parent bank 26,011 26,361 28,635 29,813 26,812 24,867 25,448 23,843 22,549 22,465 41 Banks 26,139 23,251 19,188 19,516 19,656 18,065 19,555 17,477 18,025 19,165 42 Public borrowers 3,999 3,677 3,313 3,347 3,864 3,412 3,252 3,188 3,133 3,105 43 Nonbank foreigners 17,326 14,849 13,424 13,637 13,915 13,090 13,763 13,461 12,125 12,302 44 Other assets 3,059 3,697 5,575 4,358 4,337 4,225 4,434 5,502 4,865 5,195 Bahamas and Caymans 45 Total, all currencies 142,055 142,592 160,321 143,630 153,254 152,930 156,353 159,718 160,516 165,771 46 Claims on United States 74,864 78,048 85,318 78,035 85,837 88,283 90,896 88,116 92,308 99,090 47 Parent bank 50,553 54,575 60,048 48,402 56,330 59,240 60,419 58,579 61,397 67,034 48 Other banks in United States 11,204 11,156 14,277 12,682 12,476 11,470 12,489 12,236 13,863 13,907 49 Nonbanks 13,107 12,317 10,993 16,951 17,031 17,573 17,988 17,301 17,048 18,149 50 Claims on foreigners 63,882 60,005 70,162 60,091 61,962 58,818 59,374 65,855 62,508 60,822 51 Other branches of parent bank 19,042 17,296 21,277 18,486 19,368 17,790 18,463 24,745 22,797 20,789 52, Banks 28,192 27,476 33,751 27,667 28,647 26,700 27,019 27,650 26,120 26,866 53 Public borrowers 6,458 7,051 7,428 7,063 6,891 6,849 6,955 6,835 6,457 6,185 54 Nonbank foreigners 10,190 8,182 7,706 6,875 7,056 7,479 6,937 6,625 7,134 6,982 55 Other assets 3,309 4,539 4,841 5,504 5,455 5,829 6,083 5,747 5,700 5,859 56 Total payable in U.S. dollars 136,794 136,813 151,434 135,916 145,050 145,398 148,545 152,219 152,685 157,975 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 • December 1988 3.14—Continued 1988 Liability account 1985 1986 1987 Feb. Apr. May June July All foreign countries 57 Total, all currencies 458,012 456,628 518,618' 495,003 502,398 488,939 492,844 487,677 488,283 487,895 58 Negotiable CDs 34,607 31,629 30,929 31,158 31,854 31,585 32,175 29,485 30,159 31,203 59 To United States 156,281 152,465 161,390 149,402 157,023' 155,341' 161,964' 156,235 159,024 164,416 60 Parent bank 84,657 83,394 87,606 85,092' 91,578' 85,539' 86,897' 87,256' 84,196 88,819 61 Other banks in United States 16,894 15,646 20,559 14,237 14,806 16,246 15,364' 14,625 15,310 16,667 62 Nonbanks 54,730 53,425 53,225 50,073' 50,639' 53,556' 59,703' 54,354' 59,518 58,930 63 To foreigners 245,939 253,775 304,803' 293,360 290,104' 281,202' 277,144' 280,998 277,761 270,663 64 Other branches of parent bank 89,529 95,146 124,601 111,949 109,071 105,148 104,667 110,418 107,084 100,520 65 Banks 76,814 77,809 87,274' 88,400 88,257 85,097 82,499 82,470 83,098 80,608 66 Official institutions 19,520 17,835 19,564 20,373 18,608 18,006 17,700 17,159 16,528 17,232 67 Nonbank foreigners 60,076 62,985 73,364 72,638 74,168' 72,951' 72,278' 70,951 71,051 72,303 68 Other liabilities 21,185 18,759 21,496' 21,083 23,417 20,811 21,561 20,959 21,339 21,613 69 Total payable in U.S. dollars 353,712 336,406 361,438 341,536 344,395 337,122 341,729 341,411 341,539 346,197 70 Negotiable CDs 31,063 28,466 26,768 26,386 26,869 26,596 27,233 25,015 24,870 26,128 71 To United States 150,905 144,483 148,442 138,737 144,983 144,783 149,571' 144,394' 147,551 152,782 72 Parent bank 81,631 79,305 81,783 79,313' 84,751' 79,857' 80,331' 80,752' 77,503 81,710 73 Other banks in United States 16,264 14,609 19,155 12,918 13,501 15,035 13,999 13,186 14,011 15,464 74 Nonbanks 53,010 50,569 47,504 46,506' 46,731' 49,891' 55,241' 50,456' 56,037 55,608 75 To foreigners 163,583 156,806 177,711 167,623 163,275 156,848 155,524' 162,126' 158,901 156,333 76 Other branches of parent bank 71,078 71,181 90,469 82,996 81,073 76,708 76,920 83,482 81,144 74,9% 77 Banks 37,365 33,850 35,065 32,278 30,688 29,924 28,712 28,990 28,495 30,041 78 Official institutions 14,359 12,371 12,409 12,071 10,489 10,539 10,028 9,571 9,254 9,938 79 Nonbank foreigners 40,781 39,404 39,768 40,278 41,025 39,677 39,864' 40,083' 40,008 41,358 80 Other liabilities 8,161 6,651 8,517 8,790 9,268 8,895 9,401 9,876 10,217 10,954 United Kingdom 81 Total, all currencies 148,599 140,917 158,695 157,634 155,657 152,592 156,184 151,835 151,017 149,646 82 Negotiable CDs 31,260 27,781 26,988 26,786 27,279 27,090 27,659 25,390 25,750 26,998 83 To United States 29,422 24,657 23,470 26,382 22,725 23,868 27,145 25,120 26,859 25,013 84 Parent bank 19,330 14,469 13,223 15,527 14,506 14,904 15,518 15,996 16,844 15,100 85 Other banks in United States , 2,974 2,649 1,740 1,615 1,768 1,508 2,408 1,791 2,051 1,878 86 Nonbanks 7,118 7,539 8,507 9,240 6,451 7,456 9,219 7,333 7,964 8,035 87 To foreigners 78,525 79,498 98,689 94,235 95,049 92,219 91,995 91,691 88,489 87,504 88 Other branches of parent bank 23,389 25,036 33,078 30,350 30,211 27,383 28,743 28,967 26,948 25,570 89 Banks 28,581 30,877 34,290 33,520 33,316 32,970 31,995 33,125 32,763 31,829 90 Official institutions 9,676 6,836 11,015 11,048 9,624 10,181 9,672 8,893 9,034 9,982 91 Nonbank foreigners 16,879 16,749 20,306 19,317 21,898 21,685 21,585 20,706 19,744 20,123 92 Other liabilities 9,392 8,981 9,548 10,231 10,604 9,415 9,385 9,634 9,919 10,131 93 Total payable in U.S. dollars 112,697 99,707 102,550 105,162 98,982 96,532 99,378 97,555 96,908 97,938 94 Negotiable CDs 29,337 26,169 24,926 24,281 24,716 24,392 24,994 22,960 22,846 24,229 95 To United States 27,756 22,075 17,752 23,019 19,116 20,310 22,405 20,889 23,105 21,005 96 Parent bank 18,956 14,021 12,026 14,626 13,622 13,947 14,134 14,712 15,729 13,745 97 Other banks in United States . 2,826 2,325 1,512 1,401 1,556 1,306 2,184 1,512 1,817 1,655 98 Nonbanks 5,974 5,729 4,214 6,992 3,938 5,057 6,087 4,665 5,559 5,605 99 To foreigners 51,980 48,138 55,919 53,444 50,590 47,589 47,969 48,777 46,083 47,227 100 Other branches of parent bank 18,493 17,951 22,334 21,753 21,292 18,060 18,902 20,303 18,539 17,550 101 Banks 14,344 15,203 15,580 14,401 13,106 12,889 12,860 12,957 12,240 13,501 102 Official institutions 7,661 4,934 7,530 7,045 5,181 5,918 5,470 4,700 5,036 5,781 103 Nonbank foreigners 11,482 10,050 10,475 10,245 11,011 10,722 10,737 10,817 10,268 10,395 104 Other liabilities 3,624 3,325 3,953 4,418 4,560 4,241 4,010 4,929 4,874 5,477 Bahamas and Caymans 105 Total, all currencies 142,055 142,592 160,321 143,630 153,254 152,930 156,353 159,718 160,516 165,771 106 Negotiable CDs 610 847 885 940 1,069 1,038 1,096 941 940 731 107 To United States 104,556 106,081 113,950 99,821 110,451 109,199 112,605 109,424 112,540 117,765 108 Parent bank 45,554 49,481 53,239 48,926' 55,931' 50,576' 51,745' 52,221' 49,896 54,174 109 Other banks in United States . 12,778 11,715 17,224 11,455 11,829 13,621 11,659' 11,451 12,069 13,723 110 Nonbanks 46,224 44,885 43,487 39,44c 42,691' 45,002' 49,201' 45,752' 50,575 49,868 111 To foreigners 35,053 34,400 43,815 41,234 40,038 40,953 40,369 47,361 44,993 45,062 112 Other branches of parent bank 14,075 12,631 19,185 18,604 17,260 19,420 18,909 24,755 22,288 21,221 113 Banks 10,669 8,617 10,769 9,825 9,404 9,162 9,080 9,779 10,155 9,607 114 Official institutions 1,776 2,719 1,504 1,179 1,873 1,164 1,053 1,850 1,015 1,099 115 Nonbank foreigners 8,533 10,433 12,357 11,626 11,501 11,207 11,327 10,977 11,535 13,135 116 Other liabilities 1,836 1,264 1,671 1,635 1,696 1,740 2,283 1,992 2,043 2,213 117 Total payable in U.S. dollars .... 138,322 138,774 152,927 136,636 145,366 146,134 148,923 151,684 152,235 157,512 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 1988 IItteemm 11998866 11998877 Feb. Mar.' Apr. May June' July Aug." 1 Total1 211,834 259,517 276,293' 284,324 286,529' 294,729' 290,842 291,135 289,933 By type 2 Liabilities reported by banks in the United States'1 27,920 31,838 32,148' 29,892 29,683 31,460 30,761 31,961 32,483 3 U.S. Treasury bills and certificates 75,650 88,829 93,407 95,624 94,974 96,604 95,299 97,015 %,698 U.S. Treasury bonds and notes 4 Marketable 91,368 122,432 134,719 142,854 145,929' 150,991' 149,333 146,971 145,521 5 Nonmarketable 1,300 300 300 792 795 499 502 506 509 6 U.S. securities other than U.S. Treasury securities 15,5% 16,123 15,1W 15,162' 15,148' 15,175' 14,947 14,682 14,722 By area 7 Western Europe1 88,629 124,620 127,641' 129,411 129,739' 131,406' 126,772 125,085 122,%2 8 Canada 2,004 4,%1 6,839 7,954 8,314 9,372 10,773 10,725 9,981 9 Latin America and Caribbean 8,417 8,328 8,2% 8,660 8,520 9,145 9,407 9,818 11,336 10 Asia 105,868 116,098 127,338' 131,458 132,050' 135,120' 134,285 135,657 136,165 11 Africa 1,503 1,402 1,495 1,512 1,417 1,418 1,266 1,179 1,1% 12 Other countries6 5,412 4,147 4,682 4,839 5,993 7,773 7,837 8,162 7,782 1. Includes the Bank for International Settlements. bonds and notes payable in foreign currencies. 2. Principally demand deposits, time deposits, bankers acceptances, commer- 5. Debt securities of U.S. government corporations and federally sponsored cial paper, negotiable time certificates of deposit, and borrowings under repur- agencies, and U.S. corporate stocks and bonds. chase agreements. 6. Includes countries in Oceania and Eastern Europe. NOTE. Based on Treasury Department data and on data reported to the 3. Includes nonmarketable certificates of indebtedness (including those payable Treasury Department by banks (including Federal Reserve Banks) and securities in foreign currencies through 1974) and Treasury bills issued to official institutions dealers in the United States. of foreign countries. 4. Excludes notes issued to foreign official nonreserve agencies. Includes 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies1 Millions of dollars, end of period 1987' 1988' IItteemm 11998844 11998855 11998866 Sept. Dec. Mar. June 1 Banks' own liabilities 8,586 15,368 29,702 46,147 55,075 55,457 55,399 2 Banks' own claims 11,984 16,294 26,180 41,394 50,663 51,428 50,098 3 Deposits 4,998 8,437 14,129 14,647 18,253 17,614 16,723 4 Other claims 6,986 7,857 12,052 26,746 32,410 33,814 33,375 5 Claims of banks' domestic customers2 569 580 2,507 1,067 551 810 1,004 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 • December 1988 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1988 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998855 11998866 11998877'' Feb. Mar.' Apr. May June' July Aug." 1 All foreigners 435,726 540,996 618,978 605,329r 605,615 611,031' 629,139r 637,396 647,033 658,200 2 Banks' own liabilities 341,070 406,485 470,056 446,466' 443,680 449,324' 465,665' 476,117 482,536 494,049 3 Demand deposits 21,107 23,789 22,383 21,129 21,901 20,33C 22,18K 22,990 21,983 20,331 4 Time deposits 117,278 130,891 148,444 140,119' 137,729 134,320' 138,255' 141,553 142,780 147,846 5 Other. 29,305 42,705 51,607 52,941' 47,040 46,018' 48,489' 47,658 51,116 50,384 6 Own foreign offices 173,381 209,100 247,621 232,277' 237,011 248,655' 256,741' 263,916 266,657 275,488 7 Banks' custody liabilities5 94,656 134,511 148,923 158,864' 161,935 161,707' 163,474 161,279 164,497 164,151 8 U.S. Treasury bills and certificates6 69,133 90,398 101,743 107,087 109,233 107,881 110088,,880033 110088,,661144 110099,,995522 110088,,885588 9 Other negotiable and readily transferable instruments 17,964 15,417 16,791 15,677' 16,121 16,017 16,595 16,626 16,165 16,140 10 Other 7,558 28,696 30,388 36,099' 36,581 37,81C 38,075 36,039 38,381 39,153 11 Nonmonetary international and regional organizations 5,821 5,807 4,464 8,782r 6,033 4,575 6,889 7,879 7,009 4,693 12 Banks' own liabilities 2,621 3,958 2,702 6,771' 4,031 2,412 4,898 5,142 4,831 2,869 13 Demand deposits 85 199 124 74 134 67 84 84 92 85 14 Time deposits 2,067 2,065 1,538 2,481 2,061 335 1,981 1,873 1,874 1,499 15 Other3. 469 1,693 1,040 4,216' 1,836 2,010 2,833 3,185 2,865 1,285 16 Banks' custody liabilities5 3,200 1,849 1,761 2,011 2,002 2,163 1,991 2,737 2,179 1,824 17 U.S. Treasury bills and certificates6 1,736 259 265 415 635 587 132 745 286 43 18 Other negotiable and readily transferable instruments 1,464 1,590 1,497 1,521 1,351 1,564 1,852 1,989 1,861 1,769 19 Other 0 0 0 75 16 11 7 3 32 12 20 Official institutions9 79,985 103,569 120,667 125,554' 125,516 124,657 128,065 126,060 128,975 129,181 21 Banks' own liabilities 20,835 25,427 28,703 29,234 26,915 26,623 28,451 27,882 28,376 28,959 22 Demand deposits 2,077 2,267 1,757 1,861 2,021 1,498' 1,882' 1,834 1,696 1,405 23 Time deposits 10,949 10,497 12,843 11,654 11,789 11,753 12,860 11,864 11,536 12,545 24 Other. 7,809 12,663 14,103 15,719 13,105 13,372' 13,709' 14,184 15,144 15,009 25 Banks' custody liabilities5 59,150 78,142 91,965 96,321' 98,602 98,033 99,613 98,178 100,599 100,222 26 U.S. Treasury bills and certificates6 53,252 75,650 88,829 93,407 95,624 94,974 9966,,660044 95,299 9977,,001155 9966,,669988 27 Other negotiable and readily transferable instruments 5,824 2,347 2,990 2,619' 2,750 2,939 2,775 2,672 3,368 3,240 28 Other 75 145 146 295 228 120 234 207 217 284 29 Banks10 275,589 351,745 414,181 390,708r 394,040 401,743' 413,46c 423,396 428,175 439,906 30 Banks' own liabilities 252,723 310,166 371,651 344,129' 346,742 353,971 365,512' 375,093 379,369 390,666 31 Unaffiliated foreign banks 79,341 101,066 124,030 111,852' 109,732 105,315' 108,771' 111,177 112,711 115,177 32 Demand deposits 10,271 10,303 10,898 9,759 10,012 9,153' 10,260 10,898 10,217 9,274 33 Time deposits 49,510 64,232 79,787 71,65c 69,964 68,098' 69,616 72,612 73,206 75,789 34 Other3 19,561 26,531 33,345 30,443' 29,755 28,065' 28,895' 27,668 29,289 30,114 35 Own foreign offices4 173,381 209,100 247,621 232,277' 237,011 248,655' 256,741' 263,916 266,657 275,488 36 Banks' custody liabilities5 22,866 41,579 42,530 46,579' 47,298 47,772' 47,948 48,303 48,806 49,240 37 U.S. Treasury bills and certificates6 9,832 9,984 9,134 9,526 9,597 8,889 88,,887722 99,,221122 99,,334466 99,,005511 38 Other negotiable and readily transferable instruments 6,040 5,165 5,392 4,436 4,627 4,637 4,341 4,725 4,625 4,547 39 Other 6,994 26,431 28,004 32,617' 33,074 34,245' 34,735 34,365 34,835 35,642 40 Other foreigners 74,331 79,875 79,666 80,285 80,026 80,056' 80,726' 80,061 82,874 84,421 41 Banks' own liabilities 64,892 66,934 67,000 66,332 65,993 66,318' 66,804' 67,999 69,961 71,556 42 Demand deposits 8,673 11,019 9,604 9,435 9,734 9,612 9,955 10,173 9,979 9,566 43 Time deposits 54,752 54,097 54,277 54,334 53,915 54,134' 53,798' 55,204 56,163 58,013 44 Other3. 1,467 1,818 3,119 2,563 2,344 2,571' 3,051' 2,622 3,819 3,976 45 Banks' custody liabilities5 9,439 12,941 12,666 13,953 14,034 13,739 13,922 12,062 12,913 12,865 46 U.S. Treasury bills and certificates6 4,314 4,506 3,515 3,740 33,,337788 3,430 33,,119966 33,,335588 33,,330055 33,,006666 47 Other negotiable and readily transferable instruments 4,636 6,315 6,914 7,102 7,393 6,876 7,628 7,241 6,311 6,583 48 Other 489 2,120 2,238 3,112 3,263 3,433 3,099 1,464 3,297 3,215 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 9,845 7,496 7,314 7,370 7,325 7,480 8,261 7,711 6,975 7,064 1. Reporting banks include all kinds of depository institutions besides commer- 5. Financial claims on residents of the United States, other than long-term cial banks, as well as some brokers and dealers. securities, held by or through reporting banks. 2. Excludes negotiable time certificates of deposit, which are included in 6. Includes nonmarketable certificates of indebtedness and Treasury bills "Other negotiable and readily transferable instruments." issued to official institutions of foreign countries. 3. Includes borrowing under repurchase agreements. 7. Principally bankers acceptances, commercial paper, and negotiable time 4. U.S. banks: includes amounts due to own foreign branches and foreign certificates of deposit. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 8. Principally the International Bank for Reconstruction and Development, and regulatory agencies. Agencies, branches, and majority-owned subsidiaries of the Inter-American and Asian Development Banks. Data exclude "holdings of foreign banks: principally amounts due to head office or parent foreign bank, and dollars" of the International Monetary Fund. foreign branches, agencies, or wholly owned subsidiaries of head office or parent 9. Foreign central banks, foreign central governments, and the Bank for foreign bank. International Settlements. 10. 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 1988 AArreeaa aanndd ccoouunnttrryy 11998855 11998866 11998877 Feb. Mar. Apr. May June July Aug." 1 435,726 540,996 618,978' 605,329' 605,615' 611,031' 629,139' 637,396' 647,033 658,200 2 Foreign countries 429,905 535,189 614,514r 596,547' 599,582' 606,456' 622,250' 629,517' 640,024 653,507 3 Europe 164,114 180,556 234,641r 226,632' 213,051' 218,515' 227,867 227,626' 224,175 232,630 4 Austria 693 1,181 920 964 958 1,162' 1,090 941 1,407 1,246 5 Belgium-Luxembourg 5,243 6,729 9,347 9,832 8,804 9,629 9,893 10,363 9,494 10,050 6 Denmark 513 482 760 659 930 1,034 1,164 1,364 1,474 2,078 7 Finland 496 580 377 369 405 504 478 426 550 417 8 France 15,541 22,862 29,835r 28,848' 28,424' 27,015' 28,193' 26,975' 26,002 24,208 9 Germany 4,835 5,762 7,022' 8,870' 6,609' 6,878' 6,487' 5,105' 5,203 6,190 10 Greece 666 700 689 639 656 656 675 653 620 694 11 Italy 9,667 10,875 12,073 11,001 10,075' 10,040 9,285 10,695 9,361 9,766 1? Netherlands 4,212 5,600 5,014 5,302 5,399 5,154 5,757 5,351 5,560 5,648 13 Norway 948 735 1,362 828 917 1,101 1,240 1,078 1,330 900 14 Portugal 652 699 801 780 874' 917 910 897 859 848 15 Spain 2,114 2,407 2,621 2,433 2,608' 2,415 2,839 4,168 5,011 5,566 16 Sweden 1,422 884 1,379 1,719 1,836 1,692 2,280 1,522 1,936 2,011 17 Switzerland 29,020 30,534 33,766r 31,991' 31,739' 30,523 31,293 31,226' 30,451 29,513 18 Turkey 429 454 703 541 616 518 628 570' 537 709 19 United Kingdom 76,728 85,334 116,852'' 112,332' 101,621' 109,547 115,439 115,521' 114,905 122,608 20 Yugoslavia 673 630 710 557 550 566 586 690 614 629 7,1 Other Western Europe1 9,635 3,326 9,798 8,367' 9,341' 8,473 9,038 9,230' 8,125 8,771 7? U.S.S.R , 105 80 32 49 66 44 136 239' 81 100 23 Other Eastern Europe2 523 702 582 549 623 648' 456' 611' 657 679 24 Canada 17,427 26,345 30,095' 25,967 27,350' 27,011' 27,890' 30,051 29,969 28,138 75 Latin America and Caribbean 167,856 210,318 220,399' 212,530' 220,707' 225,708' 229,829' 232,760' 242,266 246,526 76 Argentina 6,032 4,757 5,006 5,092 5,101 5,307 5,219 5,876 6,054 6,775 77 Bahamas 57,657 73,619 74,676' 64,979' 68,966' 69,975' 73,990 74,034 75,843 78,783 78 Bermuda 2,765 2,922 2,344r 2,021 2,214 2,402 2,927 2,077 2,413 2,463 79 Brazil 5,373 4,325 4,005' 3,747 4,074 3,992 4,122' 4,205' 4,489 4,694 30 British West Indies 42,674 72,263 81,612' 82,409' 88,214' 92,534' 91,601 94,311' 100,956 99,560 31 Chile 2,049 2,054 2,210 2,361 2,314 2,251 2,184 2,378 2,323 2,478 37 Colombia 3,104 4,285 4,204' 3,897 3,833 3,843 4,395 4,502 4,441 4,403 33 Cuba 11 7 12 9 8 13 9 10 9 8 34 Ecuador 1,239 1,236 1,082 1,133 1,169 1,174 1,206 1,212 1,216 1,224 35 Guatemala 1,071 1,123 1,082 1,098 1,182 1,209 1,191 1,209 1,183 1,182 36 122 136 160 148 208 209 152 156 154 149 37 Mexico 14,060 13,745 14,480 15,186 15,784' 15,347 15,866 15,801 16,336 17,260 38 Netherlands Antilles 4,875 4,970 4,975' 5,231 5,207 5,345 5,348 5,338 4,798 5,011 39 Panama 7,514 6,886 7,414 6,983 4,306 4,059 4,005 4,171' 4,251 4,262 40 Peru 1,167 1,163 1,275 1,328 1,364 1,424 1,423 1,438 1,513 1,540 41 Uruguay 1,552 1,537 1,582' 1,753 1,763 1,745' 1,717' 1,882' 1,828 1,889 47 Venezuela 11,922 10,171 9,048 9,729 9,411 9,564 9,255 8,950 9,116 9,330 43 Other 4,668 5,119 5,234 5,426 5,591 5,313' 5,219' 5,209' 5,344 5,514 44 72,280 108,831 121,364' 122,945' 129,237' 125,653' 125,750' 128,10C 133,310 136,299 China 45 Mainland 1,607 1,476 1,162 1,352 1,562 1,814 1,921 1,725 1,564 1,757 46 Taiwan 7,786 18,902 21,503 23,884 24,005 23,982 23,874 23,072 24,023 23,422 47 Hong Kong 8,067 9,393 io,i8(r 10,010 10,015' 9,635' 10,214 9,255 9,958 10,417 48 712 674 582 879 659 675 619 942 858 850 49 Indonesia 1,466 1,547 1,404' 1,583 1,547 1,063 1,036 1,075 1,036 1,255 50 Israel 1,601 1,892 1,292 1,333 1,400 1,292 1,190 1,334 1,244 1,194 51 23,077 47,410 54,398' 56,326' 60,349' 58,576' 58,151' 60,916' 62,830 65,001 5? Korea 1,665 1,141 1,637 1,502 1,546' 1,574 1,476 1,572' 1,459 1,720 53 Philippines 1,140 1,866 1,085 1,009 1,095 1,015 975 954 1,085 1,001 54 Thailand 1,358 1,119 1,345 1,354 1,189 1,181 1,448 1,099 1,650 1,422 55 Middle-East oil-exporting countries 14,523 12,352 13,988' 12,400' 12,727' 12,639' 12,413 12,089' 14,298 12,788 56 Other 9,276 11,058 12,788 11,311 13,142' 12,207' 12,434 14,066' 13,305 15,472 57 4,883 4,021 3,945 3,756 4,034 3,878 4,055 4,023' 3,837 3,846 58 Egypt 1,363 706 1,151 1,119 1,099 1,218 1,1% 1,187' 1,039 %9 59 Morocco 163 92 194 69 75 68 65 73 80 70 60 South Africa 388 270 202 194 387 195 267 245 200 204 61 163 74 67 86 81 82 63 60 63 67 67, Oil-exporting countries 1,494 1,519 1,014 1,047 1,062 1,008 1,090 1,111 1,052 1,039 63 Other 1,312 1,360 1,316 1,241 1,330 1,307 1,373 1,348' 1,403 1,498 64 Other countries 3,347 5,118 4,070 4,717 5,202' 5,689 6,859 6,957 6,467 6,068 65 Australia 2,779 4,196 3,327 3,814 4,154 4,885 5,943 6,017 5,639 5,170 66 All other 568 922 744 903 1,048 804 916 939' 828 898 67 Nonmonetary international and regional organizations 5,821 5,807 4,464' 8,782' 6,033 4,575 6,889 7,879 7,009 4,693 68 International5 4,806 4,620 2,83C 6,742' 4,330 2,691 4,955 5,925 5,078 2,923 69 Latin American regional 894 1,033 1,272 1,505 1,305 1,528 1,727 1,769 1,651 1,614 70 Other regional 121 154 362 536 397 356 207 185 280 156 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 • December 1988 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1988 AArreeaa aanndd ccoouunnttrryy 11998855 11998866 11998877'' Feb. Mar. Apr. May June July Aug." 1 Total 401,608 444,745 459,706 441,530r 443,416' 432,679' 450,678' 459,411' 471,461 471,081 2 Foreign countries 400,577 441,724 456,302 439,306r 441,211' 431,317' 449,532' 456,866' 468,396 468,062 3 Europe 106,413 107,823 102,375 100,406' 94,565' 93,507' 100,484 100,925' 9999,,770055 98,545 4 Austria 598 728 793 800 846 893 865 806 888888 944 5 Belgium-Luxembourg 5,772 7,498 9,397 9,791' 8,252' 8,792 8,724 7,863' 8,530 8,156 6 Denmark 706 688 717 746 874 612 630 640 743 609 7 Finland 823 987 1,010 835 729 993 1,103' 954 1,325 1,231 8 France 9,124 11,356 13,553 12,264' 12,227' 10,885' 12,147' 12,184' 11,861 11,672 9 Germany 1,267 1,816 2,039 1,920' 1,852' 1,610 1,719 2,840' 2,153 1,942 10 Greece 991 648 463 711 701' 513 558 590 563 515 11 Italy 8,848 9,043 7,460 6,154' 6,444' 6,201' 6,606 7,072' 6,607 6,476 12 Netherlands 1,258 3,296 2,624 2,854' 2,755' 2,865 2,766 2,656 3,017 2,938 13 Norway 706 672 934 746 627 650 886 589 484 534 14 Portugal 1,058 739 477 499 423' 439 400 358 333 321 15 Spain 1,908 1,492 1,858 1,965 1,761 1,766 1,911 1,867 1,978 2,015 16 Sweden 2,219 1,964 2,269 2,272' 2,227' 2,347 2,480 2,087 1,958 2,256 17 Switzerland 3,171 3,352 2,719 3,086 2,243' 2,452 3,093 3,274 2,486 2,461 18 Turkey 1,200 1,543 1,680 1,660 1,594 1,733 1,543 1,495 1,432 1,397 19 United Kingdom 62,566 58,335 50,819 50,508' 47,477' 47,319' 51,679 52,084' 51,885 51,656 20 Yugoslavia 1,964 1,835 1,700 1,702 1,658 1,618 1,586 1,624 1,559 1,537 21 Other Western Europe2 998 539 619 725 747 573 598 647' 671 520 22 U.S.S.R 130 345 389 380 328 377 339 506 431 466 23 Other Eastern Europe3 1,107 948 852 790 802 866 851 787' 800 899 24 Canada 16,482 21,006 25,288 21,894' 21,121' 22,101' 23,799' 24,639' 23,939 24,046 25 Latin America and Caribbean 202,674 208,825 214,641 203,393' 210,445' 200,220' 203,941' 203,208' 206,532 208,732 26 Argentina 11,462 12,091 11,996 11,977 12,230' 12,288 12,297 12,365' 12,358 12,241 27 Bahamas 58,258 59,342 64,586 57,415 60,636' 54,625 59,251 56,722 62,291 65,574 28 Bermuda 499 418 471 311 449' 669 369 818' 501 418 29 Brazil 25,283 25,716 25,897 25,905 25,9%' 26,042' 26,119 26,230' 26,036 25,917 30 British West Indies 38,881 46,284 49,8% 47,233' 52,531' 48,212' 48,873' 51,14C 49,745 49,408 31 Chile 6,603 6,558 6,308 6,260 6,099 6,132 6,018 5,881 5,778 5,661 32 Colombia 3,249 2,821 2,740 2,668 2,652 2,721 3,082 3,095 3,126 3,029 33 Cuba 0 0 1 0 0 1 0 0 0 0 34 Ecuador 2,390 2,439 2,286 2,238 2,239 2,883 2,197 2,142 2,146 2,158 35 Guatemala4 194 140 144 140 149 141 149 144 157 148 36 Jamaica 224 198 188 191 201 212 177 187 214 184 37 Mexico 31,799 30,698 29,532 29.19C 27,%7' 27,2%' 26,679' 26,177' 26,018 25,822 38 Netherlands Antilles 1,340 1,041 980 1,146 1,159 1,304 1,434 1,238 1,055 1,269 39 Panama 6,645 5,436 4,744 3,818 3,0%' 2,749 2,566 2,492 2,400 2,363 40 Peru 1,947 1,661 1,329 1,336 1,277 1,283 1,297 1,149 1,136 1,184 41 Uruguay 960 940 968 955 929 913 880 885 878 920 42 Venezuela 10,871 11,108 10,838 10,872 ll.tMO' 10,944 10,833 10,912 11,009 10,785 43 Other Latin America and Caribbean 2,067 1,936 1,738 1,737' 1,7%' 1,805 1,719 1,631' 1,685 1,650 44 66,212 96,126 106,025 106,373' 107,699' 108,395' 111133,,779977'' 112200,,112200'' 113300,,331133 112299,,000022 China 45 Mainland 639 787 968 887 1,0% 1,135' 841 1,065 903 1,017 46 Taiwan 1,535 2,681 4,577 3,813 3,554 3,812' 3,805 3,957 3,562 3,231 47 Hong Kong 6,797 8,307 8,216 7,940' 8,502' 6,343' 8,356 9,632 7,679 7,439 48 India 450 321 510 548 565 542 507 499 1,171 543 49 Indonesia 698 723 580 632 645 643 631 695 688 703 50 Israel 1,991 1,634 1,363 1,211 1,238 1,284 1,259 1,213 1,206 1,174 51 Japan 31,249 59,674 68,628 72,727' 72,256' 75,166' 78,638' 82,361' 93,083 92,428 52 Korea 9,226 7,182 5,127 4,777 5,084' 4,781' 4,886' 4,987' 4,892 4,854 53 Philippines 2,224 2,217 2,071 1,966 2,074 1,959 2,012 2,055 2,029 2,030 54 Thailand 845 578 4% 521 541 516 5% 641' 668 683 55 Middle East oil-exporting countries 4,298 4,122 4,858 3,454 3,538 4,077' 3,541 4,573 6,534 6,185 56 Other Asia 6,260 7,901 8,633 7,897 8,606' 8,136 8,725 8,441' 7,897 8,714 57 Africa 5,407 4,650 4,742 4,865 4,881 4,879 5,092 5,423 5,493 5,447 58 Egypt 721 567 521 469 483 483' 503 605 539 530 59 Morocco 575 598 542 490 487 495 483 484 481 490 60 South Africa 1,942 1,550 1,507 1,461 1,458 1,439 1,4% 1,693 1,726 1,719 61 Zaire 20 28 15 82 46 47 42 41 38 36 62 Oil-exporting countries 630 694 1,003 1,086 1,141' 1,138' 1,244 1,275 1,340 1,339 63 Other 1,520 1,213 1,153 1,276 1,267' 1,276 1,324 1,325 1,369 1,333 64 Other countries 3,390 3,294 3,230 2,375 2,499 2,216 2,419 2,551' 2,414 2,290 65 Australia 2,413 1,949 2,191 1,430 1,481 1,360 1,413 1,678' 1,554 1,449 66 Allother 978 1,345 1,039 945 1,019 856 1,006 873' 860 842 67 Nonmonetary international and regional organizations 1,030 33,,002211 3,404 2,224 2,206' 1,362' 1,147 2,545 3,065 3,020 1. Reporting banks include all kinds of depository institutions besides commer- 4. Included in "Other Latin America and Caribbean" through March 1978. cial banks, as well as some brokers and dealers. 5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 2. Includes the Bank for International Settlements. Beginning April 1978, also United Arab Emirates (Trucial States). includes Eastern European countries not listed in line 23. 6. Comprises Algeria, Gabon, Libya, and Nigeria. 3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German 7. Excludes the Bank for International Settlements, which is included in Democratic Republic, Hungary, Poland, and Romania. "Other Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A61 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1988 TTyyppee ooff ccllaaiimm 11998855 11998866 11998877'' Feb/ Mar/ Apr/ Mayr Juner July Aug." 1 Total 444444433333330000000,,,,,,,444444488888889999999 444444477777778888888,,,,,,,666666655555550000000 444444499999997777777,,,,,,,444444466666664444444 444444488888880000000,,,,,,,444444422222226666666 444444499999995555555,,,,,,,555555533333338888888 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444400000001111111,,,,,,,666666600000008888888 444444444444444444444,,,,,,,777777744444445555555 444444455555559999999,,,,,,,777777700000006666666 441,530 444444444444443333333,,,,,,,444444411111116666666 432,679 450,678 444444455555559999999,,,,,,,444444411111111111111 471,461 471,081 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555500000007777777 66666664444444,,,,,,,000000099999995555555 66666664444444,,,,,,,777777700000003333333 62,696 66666661111111,,,,,,,999999900000006666666 61,173 61,276 66666662222222,,,,,,,777777711111111111111 63,008 62,605 44 OOwwnn ffoorreeiiggnn ooffffiicceess 111111177777774444444,,,,,,,222222266666661111111 222222211111111111111,,,,,,,555555533333333333333 222222222222224444444,,,,,,,555555566666667777777 218,666 222222222222222222222,,,,,,,222222266666669999999 211,576 225,498 222222233333330000000,,,,,,,555555522222227777777 240,342 239,733 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111111111116666666,,,,,,,666666655555554444444 111111122222222222222,,,,,,,999999944444446666666 111111122222227777777,,,,,,,555555577777773333333 118,461 111111111111117777777,,,,,,,999999900000000000000 117,539 122,447 111111122222223333333,,,,,,,444444411111118888888 127,238 126,881 66 DDeeppoossiittss 44444448888888,,,,,,,333333377777772222222 55555557777777,,,,,,,444444488888884444444 66666660000000,,,,,,,444444499999990000000 55,397 55555555555555,,,,,,,333333366666664444444 55,984 57,502 55555558888888,,,,,,,888888800000006666666 59,790 59,632 77 OOtthheerr 66666668888888,,,,,,,222222288888882222222 66666665555555,,,,,,,444444466666662222222 66666667777777,,,,,,,000000088888883333333 63,064 66666662222222,,,,,,,555555533333336666666 61,555 64,945 66666664444444,,,,,,,666666611111112222222 67,448 67,249 88 AAllll ootthheerr ffoorreeiiggnneerrss 55555550000000,,,,,,,111111188888885555555 44444446666666,,,,,,,111111177777771111111 44444442222222,,,,,,,888888866666663333333 41,707 44444441111111,,,,,,,333333344444442222222 42,391 41,458 44444442222222,,,,,,,777777755555555555555 40,874 41,862 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 22222228888888,,,,,,,888888888888881111111 33333333333333,,,,,,,999999900000005555555 33333337777777,,,,,,,777777755555558888888 33333337777777,,,,,,,000000000000009999999 33333336666666,,,,,,,111111122222227777777 3333333,,,,,,,333333333333335555555 4444444,,,,,,,444444411111113333333 3333333,,,,,,,666666699999992222222 5555555,,,,,,,000000011111111111111 5555555,,,,,,,555555533333338888888 11 Negotiable and readily transferable 11111119999999,,,,,,,333333333333332222222 22222224444444,,,,,,,000000044444444444444 22222226666666,,,,,,,666666699999996666666 22222223333333,,,,,,,333333333333339999999 22222224444444,,,,,,,111111122222220000000 12 Outstanding collections and other 6666666,,,,,,,222222211111114444444 5555555,,,,,,,444444444444448888888 7777777,,,,,,,333333377777770000000 8888888,,,,,,,666666655555559999999 6666666,,,,,,,444444466666668888888 13 MEMO: Customer liability on 22222228888888,,,,,,,444444488888887777777 22222225555555,,,,,,,777777700000006666666 22222223333333,,,,,,,333333322222229999999 11111118888888,,,,,,,666666688888884444444 11111119999999,,,,,,,555555500000003333333 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 38,102 43,974r 40,059 43,556 37,807 43,147 44,425 42,221 46,604 n.a. 1. Data for banks' own claims are given on a monthly basis, but the data for and foreign branches, agencies, or wholly owned subsidiaries of head office or claims of banks' own domestic customers are available on a quarterly basis only. parent foreign bank. Reporting banks include all kinds of depository institutions besides commercial 3. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the account banks, as well as some brokers and dealers. of their domestic customers. 2. U.S. banks: includes amounts due from own foreign branches and foreign 4. Principally negotiable time certificates of deposit and bankers acceptances. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 5. Includes demand and time deposits and negotiable and nonnegotiable regulatory agencies. Agencies, branches, and majority-owned subsidiaries of certificates of deposit denominated in U.S. dollars issued by banks abroad. For foreign banks: principally amounts due from head office or parent foreign bank, description of changes in data reported by nonbanks, see July 1979 BULLETIN, p. 550. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1987r 1988 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998844 11998855 11998866 Sept. Dec. Mar/ June 1 Total 243,952 227,903 232,295 237,320 235,037 218,843 226,776 By borrower 2 Maturity of 1 year or less 167,858 160,824 160,555 166,930 163,895 151,998 162,104 3 Foreign public borrowers 23,912 26,302 24,842 27,359 26,001 24,253 25,558 4 All other foreigners 143,947 134,522 135,714 139,571 137,894 127,745 136,546 5 Maturity over 1 year2 76,094 67,078 71,740 70,390 71,142 66,845 64,672 6 Foreign public borrowers 38,695 34,512 39,103 39,411 38.652 35,836 35,597 7 All other foreigners 37,399 32,567 32,637 30,980 32,491 31,009 29,076 By area Maturity of 1 year or less K Europe 58,498 56,585 61,784 62,878 59,068 51,464 54,798 9 Canada 6,028 6,401 5,895 5,893 5,684 4,937 6,355 10 Latin America and Caribbean 62,791 63,328 56,271 58,390 56,494 55,433 56,049 11 Asia 33,504 27,966 29,457 31,535 35,938 35,505 38,935 12 Africa 4,442 3,753 2,882 2,871 2,824 2,596 2,914 13 All other3 2,593 2,791 4,267 5,362 3,887 2,062 3,053 Maturity of over 1 year 14 Europe 9,605 7,634 6,737 6,726 6,867 6,040 5,401 15 Canada 1,882 1,805 1,925 1,579 2,661 2,239 2,337 16 Latin America and Caribbean 56,144 50,674 56,719 55,144 53,817 51,583 49,801 17 Asia 5,323 4,502 4,043 3,518 3,668 3,669 3,699 18 Africa 2,033 1,538 1,539 1,623 1,747 2,201 2,429 19 All other3 1,107 926 777 1,801 2,381 1,114 1,006 1. Reporting banks include all kinds of depository institutions besides commer- 2. Remaining time to maturity, cial banks, as well as some brokers and dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • December 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 AArreeaa oorr ccoouunnttrryy 11998844 11998855 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 246.4 228.6 381.5r 381.6 385.1' 394.8r 384.6r 387.7' 381.3' 372.3r 353.lr 2 G-10 countries and Switzerland 59.2 57.9 156.4' 154.8 156.6' 162.7 158.1 155.2' 159.9' 156.5' 150.5' 3 Belgium-Luxembourg 2.3 2.1 8.9' 8.3 8.3' 9.1 8.3 8.2 10.1 9.3 9.2 4 France 4.7 4.6 15.C 14.5 13.7' 13.3 12.5 13.7 13.8 11.5 10.8 5 Germany .9 .9 11.5 12.4 11.6' 12.7 11.2 10.5 12.6 11.8 10.6' 6 Italy 4.6 4.1 9.0' 7.8 9.0 8.6 7.5 6.6 7.3 7.4 6.1 7 Netherlands .7 .4 3.4 3.9 4.6 4.4 7.3 4.8 4.1 3.3 3.3 8 Sweden 1.9 1.7 2.9 2.7 2.4 3.0 2.4 2.6 2.1 2.1 1.9 9 Switzerland .6 .9 5.6 4.7 5.8 5.8 5.7 5.4 5.6 5.1 5.6 10 United Kingdom 28.6 30.3 67.9' 68.8 71.0' 73.7 72.1' 72.1 69.1 71.3' 69.8' 11 Canada 4.4 4.0 6.6' 5.9 5.3' 5.3 4.7 4.7 5.5' 5.0 5.4 12 Japan 10.6 9.0 25.8' 25.8 24.y 26.9 26.4' 26.6' 29.8' 29.7' 28.0 13 Other developed countries 12.1 9.6 30.2' 28.9 25.7' 25.7 25.2 25.9 26.3' 26.2 23.7' 14 Austria .3 .4 1.7 1.7 1.7 1.9 1.8 1.9 1.9 1.6 1.6 15 Denmark .4 .4 2.3' 2.2 1.7 1.7 1.5 1.6 1.7 1.4 1.0 16 Finland .8 .7 1.6 1.6 1.4 1.4 1.4 1.4 1.3 1.0 1.2 17 Greece .8 .7 2.6 2.3 2.3 2.1 2.0 1.9 2.0 2.3 2.2 18 Norway .6 .6 3.0 2.7 2.4 2.2 2.1 2.0 2.3 2.0 2.0 19 Portugal .9 .7 1.0' 1.0 .8 .8 .8 .8 .5 .4 .4 20 Spain 2.5 1.5 6.4 6.7 5.8 6.3 6.1 7.4 8.0 9.0 7.2 21 Turkey 1.0 .7 2.2' 1.9 1.8' 1.7 1.7 1.5 1.6 1.6 1.5 22 Other Western Europe .5 .8 2.0' 1.6 1.4 1.4 1.5 1.6 1.6 1.9 1.6 23 South Africa 2.2 1.4 3.C 3.0 3.(r 3.0 3.0 2.9 2.9 2.8 2.8 24 Australia 2.1 1.7 4.1' 4.2 3.5 3.2 3.1 2.9 2.5 2.1 2.2' 25 OPEC countries3 14.0 12.4 20.3' 19.7 19.3' 20.0 18.8 19.0' 17.1 17.1 16.4 26 Ecuador 1.7 1.7 2.1 2.2 2.2 2.1 2.1 2.1' 1.9 1.9 1.8 27 Venezuela 6.5 6.3 8.8 8.7 8.6 8.5 8.4 8.3' 8.1' 8.1' 8.0 28 Indonesia .6 .6 3.0 2.8 2.5 2.4 2.2 2.0 1.9 1.9 1.8 29 Middle East countries 4.4 3.3 4.7' 4.4 4.3' 5.4 4.4 5.0' 3.6 3.6 3.1 30 African countries .8 .5 1.7 1.7 1.7 1.6 1.7 1.7 1.7 1.7 1.7 31 Non-OPEC developing countries 72.4 65.6 100.9' 99.1 99.1' 100.3' 100.5' 97.7' 97.7' 94.0 91.2' Latin America 32 Argentina 6.3 6.6 9.1' 9.2 9.5 9.5 9.5 9.3 9.4 9.5 9.4 33 Brazil 18.6 17.4 25.3' 25.2 25.2' 26.1' 25.1' 25.1 24.7 23.9 23.7 34 Chile 5.1 4.9 7.1 7.1 7.1 7.2 7.2 7.0 6.9 6.6 6.4 35 Colombia 2.5 2.3 2.1' 1.9 2.1 2.0 1.9 1.9 2.0 1.9 2.1 36 Mexico 18.2 15.5 23.8' 23.9 23.8' 23.9 25.3 24.8' 23.7' 22.5 21.1 37 Peru 1.9 1.5 1.6 1.5 1.4' 1.4 1.3 1.2 1.1 1.1 .9 38 Other Latin America 2.9 2.7 3.3 3.3 3.1 3.0 2.9 2.8 2.7 2.8 2.6 Asia China 39 Mainland .6 .3 .6 .6 .4 .9 .6 .3 .3 .4 .3 40 Taiwan 1.6 1.3 3.7 4.3 4.9 5.5 6.6 6.0r 8.2 6.1 4.7 41 India .3 .4 1.3 1.3 1.2 1.7 1.7 1.9 1.9 2.1 2.3 42 Israel 1.4 1.3 1.6 1.4 1.5 1.4 1.3 1.3 1.0 1.0 1.0 43 Korea (South) 6.9 6.3 8.4' 7.1 6.6' 6.2 5.6 5.0' 4.9 5.6 5.9 44 Malaysia .6 .3 1.9' 2.1 2.1 1.9 1.7 1.6 1.5 1.5 1.5 45 Philippines 2.2 1.9 5.7 5.4 5.4 5.4 5.4 5.4 5.1 5.1 4.9 46 Thailand .6 .5 1.1 1.0 .9 .9 .8 .7 .7 1.0 1.1' 47 Other Asia .5 .5 .8 .6 .7 .6 .7 .7 .7 .7 .8' Africa 48 Egypt .7 .6 ..99 .7 .7 .6 .6 .6 .5 .5 .6 49 Morocco .5 .5 .9 .9 .9 .9 .9 .8 .9 .9 .9 50 Zaire .0 .0 .1 .1 .1 .1 .1 .1 .(K .1 .1 51 Other Africa4 .9 .9 1.7 1.6 1.6 1.4 1.3' 1.3 1.3 1.0 1.2 52 Eastern Europe 2.2 2.0 4.0 3.3 3.2 3.0 3.3 3.3 3.0 2.9 3.1 53 U.S.S.R .0 .0 .3 .1 .1 .1 .3 .5 .4 .3 .4 54 Yugoslavia 1.3 1.2 2.0 1.9 1.7 1.6 1.7 1.7 1.6 1.7 1.7 55 Other .9 .7 1.7 1.4 1.4 1.3 1.3 1.2 1.0 .9 1.0 56 Offshore banking centers 84.7 79.3 53.(K 58.3 61.3' 62.8' 60.5' 64.3' 54.1' 54.1' 45^ 57 Bahamas 48.0 48.6 16.9T 19.6 22.C 23.8' 19.y 25.5' 17.1' 18.3' 12.1' 58 Bermuda .3 .3 .4 .4 .7 .8 .6 .6 .6 .8' 1.0 59 Cayman Islands and other British West Indies 25.9 21.9 10.5' 11.3 12.4' 12.1' ny 12.8' 13.1' 11.7 10.0 60 Netherlands Antilles 1.0 .8 2.2' 1.8 1.8 1.7 1.3 1.2 1.2 1.3 1.2 61 Panama 3.1 2.6 4.2 5.1 4.0' 4.2 3.9 3.7 3.7 3.2 3.0 62 Lebanon .1 .0 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 4.3 3.4 9.4' 10.3 11.1' 11.4 12.5 12.3 11.2 11.3 11.7 64 Singapore 2.1 1.8 9.3 9.7 9.2' 8.6 8.3 8.1 7.0 7.4 6.8 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .1 66 Miscellaneous and unallocated7 1.7 1.8 16.8 17.3 19.8 20.1 18.1 22.3' 23.2 21.5' 22.4 1. The banking offices covered by these data are the U.S. offices and foreign from $50 million to $150 million equivalent in total assets, the threshold now branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. applicable to all reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. This group comprises the Organization of Petroleum Exporting Countries (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, adjusted to exclude the claims on foreign branches held by a U.S. office or another Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and foreign branch of the same banking institution. The data in this table combine Oman (not formally members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 4. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 5. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 6. Foreign branch claims only. 2. Beginning with June 1984 data, reported claims held by foreign branches 7. Includes New Zealand, Liberia, and international and regional organizahave been reduced by an increase in the reporting threshold for "shell" branches tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1987 1988 Type, and area or country 11998844 11998855 11998866 June Sept. Dec. Mar. June" 1 Total 29,357 27,825 25,779 29,019 28,669 27,590r 28,84c 29,169 2 Payable in dollars 26,389 24,296 21,980 24,565 24,141 22,253' 23,246' 23,763 3 Payable in foreign currencies 2,968 3,529 3,800 4,454 4,528 5,337 5,594' 5,406 By type 4 Financial liabilities 14,509 13,600 12,312 14,096 13,034 11,574' 13,066' 12,894 5 Payable in dollars 12,553 11,257 9,827 11,197 10,080 8,097' 9,384' 9,397 6 Payable in foreign currencies 1,955 2,343 2,485 2,899 2,954 3,477 3,681' 3,497 7 Commercial liabilities 14,849 14,225 13,467 14,923 15,635 16,016 15,774' 16,275 8 Trade payables 7,005 6,685 6,462 7,286 7,548 7,425 6,601' 6,859 9 Advance receipts and other liabilities .. 7,843 7,540 7,004 7,637 8,086 8,591 9,173' 9,417 10 Payable in dollars 13,836 13,039 12,153 13,368 14,061 14,156r 13,862' 14,366 11 Payable in foreign currencies 1,013 1,186 1,314 1,555 1,574 1,859 1,912 1,910 By area or country Financial liabilities 12 Europe 6,728 7,700 8,079 9,713 9,298 7,794' 8,939' 8,577 13 Belgium-Luxembourg 471 349 270 257 230 202 241 267 14 France 995 857 661 822 615 364' 365 330 15 Germany 489 376 368 402 505 583 586 622 16 Netherlands 590 861 704 669 641 1,014 1,013 1,008 17 Switzerland 569 610 646 655 685 493 652' 705 18 United Kingdom 3,297 4,305 5,140 6,646 6,357 4,946 5,90C 5,471 19 Canada 863 839 399 441 397 400 467 458 20 Latin America and Caribbean 5,086 3,184 1,961 1,744 961 847 1,195 1,192 21 Bahamas 1,926 11,,112233 614 398 280 278 249 211 22 Bermuda 13 44 4 0 0 0 0 0 23 Brazil 35 29 32 22 22 25 23 19 24 British West Indies 2,103 1,843 1,163 1,223 580 476 824 896 25 Mexico 367 15 22 29 17 13 15 26 26 Venezuela 137 3 0 2 3 0 2 0 27 Asia 1,777 1,815 1,805 2,131 2,300 2,429 2,379 2,591 28 Japan ... 1,209 1,198 11,,339988 1,751 1,830 2,042 1,987 2,063 29 Middle East oil-exporting countries . 155 82 88 7 7 8 12 11 30 Africa 14 12 1 1 2 4 5 2 0 0 1 0 0 1 3 1 31 Oil-exporting countries 41 50 67 66 76 100 80 73 32 All other4 Commercial liabilities 4,001 4,074 4,447 4,966 4,951 5,626 5,757' 5,810 33 Europe 48 62 101 111 59 125 148' 150 34 Belgium-Luxembourg 438 453 352 423 437 451 441 433 35 France 622 607 714 585 674 916 817 798 36 Germany 245 364 424 324 336 421 484' 535 37 Netherlands 257 379 387 557 556 559 529 455 38 Switzerland 1,095 976 1,341 1,380 1,473 1,668 1,798 1,850 39 United Kingdom 40 Canada 1,975 1,449 1,405 1,371 1,399 1,301 1,393 1,169 41 Latin America and Caribbean 1,871 1,088 924 1,069 1,082 865 937' 1,008 42 Bahamas 7 12 32 13 22 19 17 64 43 Bermuda 114 77 156 266 252 168 325 274 44 Brazil 124 58 61 88 40 46 59 54 45 British West Indies 32 44 49 67 47 19 14 28 46 Mexico 586 430 217 214 231 189 164' 238 47 Venezuela 636 212 216 203 176 162 85' 111 48 Asia 5,285 6,046 5,091 5,919 6,511 6,573 5,899' 6,272 49 Japan - j 1,256 1,799 2,052 2,481 2,422 2,580 2,509' 2,660 50 Middle East oil-exporting countries2,5 2,372 2,829 1,679 1,867 2,104 1,964 1,069' 1,321 51 Africa 588 587 619 524 572 574 576' 623 52 Oil-exporting countries 233 238 197 166 151 135 159' 115 53 All other4 1,128 982 980 1,074 1,119 1,078 1,212' 1,394 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 • December 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 June Sept.' Dec.' Mar. June^ 1 Total 29,901 28,876 36,248r 33,578' 33,209 32,285 31,389 38,452 2 Payable in dollars 27,304 26,574 33,850'' 30,597' 30,648 29,192 29,410 36,524 3 Payable in foreign currencies 2,597 2,302 2,399' 2,981' 2,561 3,093 1,979 1,928 By type 4 Financial claims 19,254 18,891 26,273' 23,686' 22,857 21,747 20,606 26,902 5 Deposits 14,621 15,526 19,916r 16,014' 17,286 15,535 13,205 19,974 6 Payable in dollars 14,202 14,911 19,331 14,775' 16,377 14,089 12,650 19,283 7 Payable in foreign currencies 420 615 585' 1,238' 908 1,447 555 691 X Other financial claims 4,633 3,364 6,357' 7,673' 5,572 6,212 7,400 6,928 9 Payable in dollars 3,190 2,330 5,005' 6,391' 4,447 5,099 6,349 6,126 10 Payable in foreign currencies 1,442 1,035 1,352' 1,282' 1,124 1,113 1,051 803 11 Commercial claims 10,646 9,986 9,975 9,892 10,352 10,537 10,784 11,550 12 Trade receivables 9,177 8,6% 8,783 8,848' 9,399 9,530 9,726 10,592 13 Advance payments and other claims 1,470 1,290 1,192 1,043 953 1,007 1,057 958 14 Payable in dollars 9,912 9,333 9,513 9,431 9,824 10,005 10,410 11,116 15 Payable in foreign currencies 735 652 462 461 528 533 373 434 By area or country Financial claims 16 Europe 5,762 6,929 10,744' 11,468' 10,785 10,666 10,340 12,532 17 Belgium-Luxembourg 15 10 41 6 26 6 15 15 IX France 126 184 138 169 171 359 328 174 19 Germany 224 223 116' %' 103 72 85 145 20 Netherlands 66 161 151 140 157 348 334 333 21 Switzerland 66 74 185 98 44 76 56 81 22 United Kingdom 4,864 6,007 9,855' 10,745' 10,074 9,561 9,276 11,410 23 Canada 3,988 3,260 4,808' 3,712 3,294 3,294 2,840 3,009 24 Latin America and Caribbean 8,216 7,846 9,291' 7,638' 7,579 6,831 6,511 10,865 25 Bahamas 3,306 2,698 2,628 2,589 3,299 1,804 2,268 4,121 26 Bermuda 6 6 6 6 2 7 43 126 27 Brazil 100 78 86' 115' 113 64 86 46 28 British West Indies 4,043 4,571 6,078 4,429' 3,716 4,439 3,580 6,062 29 Mexico 215 180 174 168' 174 172 154 147 30 Venezuela 125 48 21 20 18 19 35 23 31 Asia 961 731 1,317' 789 1,105 830 841 415 32 Japan 353 475 999 452 737 550 673 184 33 Middle East oil-exporting countries 13 4 7 6 10 10 8 6 34 Africa 210 103 85 59' 71 65 53 61 35 Oil-exporting countries3 85 29 28 9 14 7 7 10 36 All other4 117 21 28' 20' 24 61 21 20 Commercial claims 37 Europe 3,801 3,533 3,708 3,845 4,120 4,132 4,135 4,821 38 Belgium-Luxembourg 165 175 133 137 169 179 192 159 39 France 440 426 414 439 416 595 485 605 40 Germany 374 346 444 526 550 560 629 767 41 Netherlands 335 284 164 172 190 133 151 173 42 Switzerland 271 284 217 187 206 185 173 263 43 United Kingdom 1,063 898 999 1,074 1,228 1,086 1,084 1,299 44 Canada 1,021 1,023 934 1,046 1,051 931 1,167 947 45 Latin America and Caribbean 2,052 1,753 1,857 1,727' 1,711 1,912 1,963 2,095 46 Bahamas 8 13 28 14 12 19 14 13 47 Bermuda 115 93 193 169 143 159 171 174 48 Brazil 214 206 234 204' 231 226 215 234 49 British West Indies 7 6 39 19 20 26 24 25 50 Mexico 583 510 412 347' 369 366 371 399 51 Venezuela 206 157 237 204' 192 298 322 345 52 Asia 3,073 2,982 2,755 2,642 2,800 2,919 2,867 3,010 53 Japan 1,191 1,016 881 952 1,027 1,160 1,109 1,168 54 Middle East oil-exporting countries2 668 638 563 452 434 450 412 450 55 Africa 470 437 500 378 407 401 420 421 56 Oil-exporting countries 134 130 139 123 124 144 157 137 57 All other4 229 257 222 255 262 241 231 257 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 1988 Transactions, and area or country 1986 1987 Jan.- Feb. Mar. Apr. May June July Aug/ Aug. U.S. corporate securities STOCKS 148,114 249,113 132,500 16,344 18,068 15,022 13,654 20,007 19,207 17,275 2 Foreign sales 129,395 232,849 131,285 16,720 18,482 13,705 14,723 19,678 18,383 16,704 3 Net purchases, or sales (—) 18,719 16,264 1,215 -376 -414 1,317 -1,069 329 824 572 4 Foreign countries 18,927 16,313 1,228 -344 -444 1,300 -976 287 793 548 5 Europe 9,559 1,928 -1,028 -323 -360 481 -1,151 33 227 287 6 France 459 905 -220 -29 -7 -1 -153 121 -34 -21 341 -74 209 -37 171 104 -66 -36 -3 9 8 Netherlands 936 892 -465 59 -223 -145 -43 -56 20 -5 9 Switzerland 1,560 -1,123 -989 -252 -32 -17 -247 -204 -90 -37 10 United Kingdom 4,826 630 -246 -130 -331 429 -711 146 253 234 816 1,048 310 -167 -61 241 102 -172 58 162 12 Latin America and Caribbean 3,031 1,314 464 261 98 230 -82 -116 58 159 13 Middle East1 976 -1,360 -1,467 -251 -788 24 62 -549 -159 91 3,876 12,8% 2,612 70 577 372 106 1,039 518 -228 297 123 158 -18 5 19 23 3 78 41 16 Other countries 373 365 179 85 84 -67 -35 51 13 36 17 Nonmonetary international and regional organizations -208 -48 -13 -33 31 17 --9922 4422 3311 2233 BONDS2 18 Foreign purchases 123,169 105,856 55,289 6,453 7,799 5,618 7,810 8,341 8,277 5,966 19 Foreign sales 72,520 78,312 38,374 6,039 5,594 4,433 3,518 4,590' 5,064 3,942 20 Net purchases, or sales (-) 50,648 27,544 16,915 414 2,206 1,185 4,292 3,751' 3,213 2,024 21 Foreign countries 49,801 26,804 17,436 532 2,201 1,186 4,262 3,569' 3,190 2,039 22 Europe 39,313 21,989 10,543 263 1,462 658 2,256 2,203' 1,744 1,684 389 194 124 13 57 7 -18 15 -7 5 24 Germany -251 33 1,197 118 260 347 11 226 88 166 25 Netherlands 387 269 366 -1 30 58 180 55 1177 41 26 Switzerland 4,529 1,587 0 60 -14 -15 152 -71 -139 8844 27 United Kingdom 33,900 19,770 8,286 49 976 228 1,886 1,738 1,685 11,,339900 28 Canada 548 1,2% 662 -29 87 104 98 216 130 27 29 Latin America and Caribbean 1,476 2,473 1,378 316 245 100 134 158' 255 194 30 Middle East1 -2,961 -548 -428 -76 144 -61 10 -92 -102 -88 31 Other Asia 11,270 1,638 5,312 88 270 377 1,749 1,075 1,153 254 32 Africa 16 16 -13 -22 3 4 -2 4 0 1 33 Other countries 139 -61 19 -8 -11 5 17 5 10 -33 34 Nonmonetary international and regional organizations 847 740 -521 -119 5 -1 31 182 2233 --1144 Foreign securities 35 Stocks, net purchases, or sales (-) -1,853 1,149 -604 -678 -724 372 905' -154' -86 -749 36 Foreign purchases 49,149 95,263 48,506 5,717 6,693 5,797 5,964 6,404 7,050 5,893 37 Foreign sales 51,002 94,114 49,111 6,3% 7,417 5,425 5,059' 6,558' 7,136 6,642 38 Bonds, net purchases, or sales (-) -3,685 -7,830 -4,888 -1,433 -1,179 -137 873 -708' -657 -321 39 Foreign purchases 166,992 199,010' 129,207 15,858 16,561 15,593 15,119 17,013' 19,219 17,033 40 Foreign sales 170,677 206,845' 134,095 17,291 17,740 15,730 14,246 17,721 19,876 17,354 41 Net purchases, or sales (—), of stocks and bonds .... -5,538 -6,687' -5,493 -2,111 -1,903 235 1,778' -863 -743 -1,071 42 Foreign countries -6,493 -6,718' -5,806 -2,131 -1,944 179 1,562' -774 -718 -1,100 43 Europe -18,026 -12,088' -5,339 -1,627 -1,541 483 681' -1,185' -474 -1,351 44 Canada -876 -4,065 -2,528 -648 -366 -406 -162 -186 -319 213 45 Latin America and Caribbean 3,476 828 1,279 -64 138 538 322 301 -48 -34 10,858 9,338 688 37 -154 -407 696' 557' 263 -108 52 89 122 3 48 14 -1 1 11 37 48 Other countries -1,977 -820 -28 169 -70 -43 24 -262 -151 143 49 Nonmonetary international and regional organizations 955 31 313 20 41 56 216 -89 --2266 3300 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 • December 1988 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1988 1988 Country or area 1986 1987 Jan.- Aug. Feb. Mar. Apr. May June July Aug." Transactions, net purchases or sales (-) during period1 I Estimated total2 19,388 25,587 39,673 12,083 9,980 3,433 11,062 -2,162 905 -274 2 Foreign countries2 20,491 30,889 40,068 12,832 9,017 3,728 9,972 -3,337 2,156 -40 3 Europe2 16,326 23,716 13,589 5,878 3,471 2,332 3,108 -3,226 -1,460 -836 4 Belgium-Luxembourg -245 653 1,216 242 454 47 159 -68 122 -209 5 Germany2 7,670 13,330 -3,484 1,397 919 1,576 79 -4,241 -4,240 -2,020 6 Netherlands 1,283 -913 -420 334 378 117 -22 -796 312 -406 7 Sweden 132 210 -513 26 -245 -93 104 -232 -187 175 8 Switzerland2 329 1,917 554 -1,188 643 344 -309 654 -51 344 9 United Kingdom 4,546 3,975 6,949 4,373 -244 97 1,523 47 837 416 10 Other Western Europe 2,613 4,563 9,263 678 1,570 238 1,560 1,420 1,755 863 11 Eastern Europe 0 -19 23 16 -3 5 14 -10 -9 0 12 Canada 881 4,526 2,875 559 372 133 1,415 669 -314 -315 13 Latin America and Caribbean 926 -2,192 591 630 198 75 360 -580 0 -312 14 Venezuela -96 150 -93 -1 20 15 1 2 -2 -128 15 Other Latin America and Caribbean 1,130 -1,142 581 320 169 97 -17 63 57 -292 16 Netherlands Antilles -108 -1,200 103 311 10 -36 376 -645 -55 108 17 Asia 1,345 4,488 21,236 5,921 5,463 713 4,476 -382 3,246 1,027 18 Japan -22 868 20,305 4,996 4330 687 2,820 -52 3,006 1,539 19 Africa -54 -56 -27 25 5 0 -13 -1 -10 5 20 All other 1,067 407 1,805 -182 -492 475 626 183 694 391 21 Nonmonetary international and regional organizations -1,104 -5,300 -397 -748 963 -295 1,090 1,174 -1,252 -235 22 International -1,430 -4,387 13 -879 968 -334 1,155 1,546 -1,137 -282 23 Latin American regional 157 3 -51 -2 -5 0 7 -38 -14 -8 Memo 24 Foreign countries' 20,491 30,889 40,068 12,832 9,017 3,728 9,972 -3,337 2,156 -40 25 Official institutions 14,214 31,064 23,089 7,169 8,135' 3,075 5,062 -1,658 -2,362 -1,450 26 Other foreign2 6,283 -181 16,981 5,663 882r 653 4,910 -1,678 4,518 1,411 Oil-exporting countries 27 Middle East -1,529 -3,142 -83 -296 578 514 -612 -201 295 449 28 Africa4 5 16 1 0 0 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 Oct. 31, Rate on Oct. 31, 1988 Rate on Oct. 31, 1988 Country 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 Percent e M ffe o c n t t i h v e Austria.. 4.0 Aug. 1988 France 7.25 Oct. 1988 Norway 8.0 June 1983 Belgium . 7.5 Aug. 1988 Germany, Fed. Rep. of. 3.5 Aug. 1988 Switzerland , 3.0 Aug. 1988 Brazil ... 49.0 Mar. 1981 Italy 12.5 Aug. 1988 United Kingdom' Canada.. 10.51 Oct. 1988 Japan 2.5 Feb. 1987 Venezuela 8.0 Oct. 1985 Denmark 7.0 Oct. 1983 Netherlands 4.0 Aug. 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 Apr. May June July Aug. Sept. Oct. 1 Eurodollars 8.27 6.70 7.07 7.05 7.40 7.61 8.09 8.47 8.31 8.51 2 United Kingdom 12.16 10.87 9.65 8.25 8.00 8.91 10.45 11.29 12.09 11.94 3 Canada 9.64 9.18 8.38 8.90 9.07 9.44 9.42 9.92 10.48 10.48 4 Germany 5.40 4.58 3.97 3.37 3.51 3.88 4.88 5.28 4.93 5.03 5 Switzerland 4.92 4.19 3.67 1.83 2.23 2.82 3.67 3.57 3.34 3.62 6 Netherlands 6.29 5.56 5.24 3.98 4.07 4.10 4.85 4.50 5.51 5.35 7 France 9.91 7.68 8.14 7.99 7.81 7.27 7.32 7.58 7.86 7.87 8 Italy 14.86 12.60 11.15 10.54 10.57 10.90 11.02 11.02 11.27 11.30 9 Belgium 9.60 8.04 7.01 6.08 6.05 6.04 6.84 7.25 7.39 7.24 10 Japan 6.47 4.96 3.87 3.80 3.80 3.82 3.84 3.98 4.15 4.26 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 • December 1988 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar 1988 Country/currency 1986 1987 May June July Aug. Sept. Oct. 1 Australia/dollar^ 70.026 67.093 70.136 77.74 80.76 80.00 80.57 79.15 80.% 2 Austria/schilling 20.676 15.260 12.649 11.912 12.380 12.991 13.281 13.135 12.777 3 Belgium/franc 59.336 44.662 37.357 35.381 36.786 38.649 39.562 39.149 38.077 4 Canada/dollar 1.3658 1.3896 1.3259 1.2373 1.2176 1.2075 1.2237 1.2267 1.2055 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 6.4938 6.6893 7.0266 7.2280 7.1764 7.0055 7 Finland/markka 6.1971 5.0721 4.4036 4.0297 4.1761 4.38% 4.4720 4.4282 4.3041 8 France/franc 8.9799 6.9256 6.0121 5.7348 5.9310 6.2241 6.3919 6.3515 6.1975 9 Germany/deutsche mark 2.9419 2.1704 1.7981 1.6935 1.7579 1.8466 1.8880 1.8668 1.8165 10 Greece/drachma 138.40 139.93 135.47 135.75 140.69 147.85 151.62 151.47 148.71 11 Hong Kong/dollar 7.7911 7.8037 7.7985 7.8156 7.8073 7.8135 7.8050 7.8106 7.8133 12 India/rupee.. 12.332 12.597 12.943 13.315 13.785 14.079 14.217 14.490 14.720 13 Ireland/punt 106.62 134.14 148.79 157.78 152.65 145.49 142.17 143.60 147.30 14 Italy/lira 1908.90 1491.16 1297.03 1258.81 1305.56 1367.26 1397.93 1393.15 1353.36 15 Japan/yen 238.47 168.35 144.60 124.79 127.47 133.02 133.77 134.32 128.68 16 Malaysia/rinegit 2.4806 2.5830 2.5185 2.5847 2.5860 2.6267 2.6520 2.6643 2.6785 17 Netherlands/guilder 3.3184 2.4484 2.0263 1.8987 1.9767 2.0827 2.1319 2.1063 2.0486 18 New Zealand/dollar2 ... 49.752 52.456 59.327 68.889 69.996 66.832 64.815 61.480 62.113 19 Norway/krone 8.5933 7.3984 6.7408 6.1875 6.3951 6.7207 6.9016 6.9150 6.7400 20 Portugal/escudo 172.07 149.80 141.20 138.44 143.54 150.42 153.72 154.18 150.13 21 Singapore/dollar 2.2008 2.1782 2.1059 2.0109 2.0285 2.0459 2.0417 2.0409 2.0202 22 South Africa/rand 2.2343 2.2918 2.0385 2.2114 2.2716 2.3985 2.4531 2.4575 2.4662 23 South Korea/won 861.89 884.61 825.93 739.44 732.88 728.67 725.74 723.00 712.72 24 Spain/peseta 169.98 140.04 123.54 112.04 116.25 122.27 124.122 124.36 120.02 25 Sri Lanka/rupee 27.187 27.933 29.471 30.993 31.133 31.782 32.807 32.953 32.989 26 Sweden/krona 8.6031 7.1272 6.3468 5.9091 6.1074 6.3542 6.4878 6.4448 6.2694 27 Switzerland/franc 2.4551 1.7979 1.4918 1.4111 1.4629 1.5343 1.5837 1.5763 1.5372 28 Taiwan/dollar 39.889 37.837 31.756 28.666 28.723 28.726 28.693 28.914 28.880 29 Thailand/baht 27.193 26.314 25.774 25.170 25.280 25.523 25.560 25.548 25.365 30 United Kingdom/pound 129.74 146.77 163.98 186.95 177.68 170.51 169.65 168.40 173.87 MEMO 31 United States/dollar3 ... 143.01 89.74 92.58 %.53 98.29 97.91 95.10 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 December 1988 All 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 statements for priced service operations, March 31, 1988 . August 1988 A70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 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 BOB STAHLY MOORE, Special Assistant to the Board CHARLES J. SIEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser LEGAL DIVISION DONALD B. ADAMS, Assistant Director PETER HOOPER III, Assistant Director KAREN H. JOHNSON, Assistant Director MICHAEL BRADFIELD, General Counsel J. VIRGIL MATTINGLY, JR., Deputy General Counsel RALPH W. SMITH, JR., Assistant Director 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 THOMAS D. SIMPSON, Associate Director OFFICE OF THE SECRETARY LAWRENCE SLIFMAN, Associate Director ELEANOR J. STOCKWELL, Associate Director WILLIAM W. WILES, Secretary MARTHA BETHEA, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary PETER A. TINSLEY, Deputy Associate Director JAMES MCAFEE, Associate Secretary MYRON L. KWAST, Assistant Director SUSAN J. LEPPER, Assistant Director MARTHA S. SCANLON, Assistant Director DIVISION OF CONSUMER DAVID J. STOCKTON, Assistant Director AND COMMUNITY AFFAIRS JOYCE K. ZICKLER, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director ELLEN MALAND, Assistant Director DIVISION OF MONETARY AFFAIRS DOLORES S. SMITH, Assistant Director DONALD L. KOHN, Director DIVISION OF BANKING DAVID E. LINDSEY, Deputy Director BRIAN F. MADIGAN, Assistant Director SUPERVISION AND REGULATION RICHARD D. PORTER, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM TAYLOR, Staff Director DON E. KLINE, Associate Director FREDERICK M. STRUBLE, Associate Director OFFICE OF THE INSPECTOR GENERAL WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director BRENT L. BOWEN, Inspector General RICHARD SPILLENKOTHEN, Deputy Associate Director HERBERT A. BIERN, Assistant Director 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

A71 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 Programs Officer DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF HUMAN RESOURCES MANAGEMENT CLYDE H. FARNSWORTH, JR., 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 FLORENCE M. YOUNG, Adviser OFFICE OF THE CONTROLLER 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, Deputy Executive 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

All Federal Reserve Bulletin • December 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 JOHN P. LA WARE ROBERT P. FORRESTAL MANUEL H. JOHNSON ROBERT T. PARRY 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

A73 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, Overland Park, Kansas DONALD B. SHACKELFORD, Columbus, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SER- INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; VICES, MS-138, Board of Governors of the Federal Reserve 10 or more to one address, $1.25 each. System, Washington, D.C. 20551 or telephone (202) 452- PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. 3244. When a charge is indicated, payment should accom- $13.50 each. pany request and be made payable to the Board of Governors FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; upof the Federal Reserve System, and forwarded to Publica- dated at least monthly. (Requests must be prepaid.) tions Services, Board of Governors of the Federal Reserve Consumer and Community Affairs Handbook. $75.00 per System, P.O. Box 27531, Richmond, VA 23261-7531. Pay- year. ment from foreign residents should be drawn on a U.S. bank. 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. 1987. 1988. 272 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. Else- CONSUMER EDUCATION PAMPHLETS where, $1.50 each. Short pamphlets suitable for classroom use. Multiple copies SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- are available without charge. RIES OF CHARTS. Weekly. $24.00 per year or $.60 each in the United States, its possessions, Canada, and Mexico; Consumer Handbook on Adjustable Rate Mortgages 10 or more of same issue to one address, $22.50 per year Consumer Handbook to Credit Protection Laws or $.55 each. Elsewhere, $30.00 per year or $.70 each. Fair Credit Billing THE FEDERAL RESERVE ACT, and other statutory provisions Federal Reserve Glossary affecting the Federal Reserve System, as amended A Guide to Business Credit and the Equal Credit Opportunity through April 20, 1983, with Supplements covering Act amendments through August 1987. 576 pp. $7.00. Guide to Federal Reserve Regulations REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- How to File A Consumer Credit Complaint ERAL RESERVE SYSTEM. If You Borrow To Buy Stock ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— If You Use A Credit Card Regulation Z) Vol. I (Regular Transactions). 1969. 100 Series on the Structure of the Federal Reserve System pp. Vol. 11 (Irregular Transactions). 1969. 116 pp. Each The Board of Governors of the Federal Reserve System volume $2.25; 10 or more of same volume to one The Federal Open Market Committee address, $2.00 each. Federal Reserve Bank Board of Directors FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY Federal Reserve Banks UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one Organization and Advisory Committees address, $1.50 each. A Consumer's Guide to Mortgage Lock-Ins THE BANK HOLDING COMPANY MOVEMENT TO 1978: A A Consumer's Guide to Mortgage Closings COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to A Consumer's Guide to Mortgage Refinancing one address, $2.25 each. Making Deposits: When Will Your Money Be Available? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 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 OMY, by Darrell Cohen and Peter B. Clark. January Reserve 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 are of general interest. Requests to obtain single copies of 142. MERGERS AND ACQUISITIONS BY COMMERCIAL BANKS, the full text or to be added to the mailing list for the series 1960-83, by Stephen A. Rhoades. December 1984. 30 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 pp. Out of print. 114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE 144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON- ON COMPETITION AND PERFORMANCE IN BANKING 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 E. Elliehausen and Robert D. Kurtz. May 1985. 10 pp. 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- 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 Robert D. Kurtz. August 1985. 31 pp. Out of print. 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 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 Thomas F. Brady. November 1985. 25 pp. 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- VENTION: SEPTEMBER 1977-DECEMBER 1979, by Margaret L. Greene. October 1984. 40 pp. Out of print. DEXES OF THE MONETARY AGGREGATES, by Helen T. Farr and Deborah Johnson. December 1985. 42 pp. 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- VENTION: OCTOBER I98O-OCTOBER 1981, by Margaret 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE L. Greene. August 1984. 36 pp. ECONOMIC RECOVERY TAX ACT: SOME SIMULATION RESULTS, by Flint Brayton and Peter B. Clark. Decem- 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTERber 1985. 17 pp. NATIONAL TRADE AND OTHER ECONOMIC VARIABLES: 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 A. Rhoades. April 1986. 32 pp. 1984. Out of print. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- DEUTSCHE MARK INTERVENTION, by Laurence R. Ja- A REEXAMINATION AND AN APPLICATION, by John T. Rose and John D. Wolken. May 1986. 13 pp. cobson. October 1983. 8 pp. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRIC- 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BETWEEN ING FROM 1983 THROUGH 1985, by Patrick I. Mahoney, EXCHANGE RATES AND INTERVENTION: A REVIEW OF Alice P. White, Paul F. O'Brien, and Mary M. THE TECHNIQUES AND LITERATURE, by Kenneth Ro- McLaughlin. January 1987. 30 pp. goff. October 1983. 15 pp. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTERVEN- REVIEW OF THE LITERATURE, by Mark J. Warshawsky. TION, AND INTEREST RATES: AN EMPIRICAL INVESTI- April 1987. 18 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Survey of Consumer Finances, 1983: A Second Report. Alice P. White. September 1987. 14 pp. 12/84. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF PRO- Union Settlements and Aggregate Wage Behavior in the POSED CEILINGS ON CREDIT CARD INTEREST RATES, by 1980s. 12/84. Glenn B. Canner and James T. Fergus. October The Thrift Industry in Transition. 3/85. 1987. 26 pp. A Revision of the Index of Industrial Production. 7/85. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Financial Innovation and Deregulation in Foreign Industrial Warshawsky. November 1987. 25 pp. Countries. 10/85. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANK- Recent Developments in the Bankers Acceptance Market. ING MARKETS, by James V. Houpt. May 1988. 47 pp. 1/86. The Use of Cash and Transaction Accounts by American Families. 2/86. REPRINTS OF BULLETIN ARTICLES Financial Characteristics of High-Income Families. 3/86. Most of the articles reprinted do not exceed 12 pages. Prices, Profit Margins, and Exchange Rates. 6/86. Agricultural Banks under Stress. 7/86. Limit of 10 copies Foreign Lending by Banks: A Guide to International and U.S. Statistics. 10/86. Foreign Experience with Targets for Money Growth. 10/83. Recent Developments in Corporate Finance. 11/86. Intervention in Foreign Exchange Markets: A Summary of Measuring the Foreign-Exchange Value of the Dollar. 6/87. Ten Staff Studies. 11/83. Changes in Consumer Installment Debt: Evidence from the A Financial Perspective on Agriculture. 1/84. 1983 and 1986 Surveys of Consumer Finances. 10/87. Survey of Consumer Finances, 1983. 9/84. U.S. International Transactions in 1987. 5/88. Bank Lending to Developing Countries. 10/84. Home Equity Lines of Credit. 6/88. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM1 (Payment must accompany requests.) Annual proximate Date or period Weekly Releases rate release days to which data refer • Aggregate Reserves of Depository Institutions and $13.00 Thursday Week ended previous the Monetary Base. H.3 (502) [1.20] Wednesday • Actions of the Board: Applications and Reports $34.00 Friday Week ended previous Saturday Received. H.2 (501) • Assets and Liabilities of Insured Domestically $13.00 Monday Wednesday, 3 weeks earlier Chartered and Foreign Related Banking Institutions. H.8 (510) [1.25] • Changes in State Member Banks. K.3 (615) $13.00 Tuesday Week ended previous Saturday • Factors Affecting Reserves of Depository $13.00 Thursday Week ended previous Institutions and Condition Statement of Federal Wednesday Reserve Banks. H.4.1 (503) [1.11] • Foreign Exchange Rates. H.10 (512) [3.28] $13.00 Monday Week ended previous Friday • Money Stock, Liquid Assets, and Debt Measures. $34.00 Thursday Week ended Monday of H.6 (508) [1.21] previous week • Selected Borrowings in Immediately Available $13.00 Wednesday Week ended Thursday of Funds of Large Member Banks. H.5 (507) [1.13] previous week • Selected Interest Rates. H.15 (519) [1.35] $13.00 Monday Week ended previous Saturday • Weekly Consolidated Condition Report of Large $13.00 Friday Wednesday, 1 week earlier Commercial Banks, and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.28, 1.29, 1.30] Monthly Releases • Capacity Utilization: Manufacturing, Mining, $ 3.00 Midmonth Previous month Utilities, and Industrial Materials. G.3 (402) [2.12] • Changes in Status of Banks and Branches. G.4.5 $11.00 1st of month Previous month (404) • Consumer Installment Credit. G.19 (421) [1.55, 1.56] $ 3.00 5th working day of 2nd month previous month • Debits and Deposit Turnover at Commercial Banks. $3.00 12th of month Previous month G.6 (406) [1.22] • Finance Companies. G.20 (422) [1.51, 1.52] 3.00 5th working day of 2nd month previous month • Foreign Exchange Rates. G.5 (405) [3.28] 3.00 1st of month Previous month • Industrial Production. G.12.3 (414) [2.13] 9.00 Midmonth Previous month • Loans and Securities at all Commercial Banks. G.7 3.00 3rd week of month Previous month (407) [1.23] • Major Nondeposit Funds of Commercial Banks. 3.00 3rd week of month Previous month G. 10 (411) [1.24] • Monthly Report of Assets and Liabilities of Large 3.00 20th of month Wednesday, 2 weeks earlier International Banking Facilities. G. 14 (416) 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The respective BULLETIN tables that report the data are designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Annual Approximate Date or period Monthly Releases—Continued rate release days to which data refer • Research Library—Recent Acquisitions. G. 15 (417) Free of 1st of month Previous month charge • Selected Interest Rates. G.13 (415) [1.35] $ 3.00 3rd working day of Previous month month Quarterly Releases • Agricultural Finance Databook. E.15 (125) $ 5.00 End of March, January, April, July, and June, September, October and December • Country Exposure Lending Survey. E.16 (126) $ 5.00 January, April, Previous 3 months July, and October • Domestic Offices, Commercial Bank Assets and $ 4.00 March, June, Previous 6 months Liabilities Consolidated Report of Condition. September, and E.3.4 (113) [1.26, 1.28] December • Flow of Funds: Seasonally Adjusted and $10.00 23rd of February, Previous quarter Unadjusted. Z.l (780) [1.58, 1.59] May, August, and November • Flow of Funds Summary Statistics Z.l (788) [1.57, $3.00 15th of February, Previous quarter 1.58] May, August, and November • Geographical Distribution of Assets and Liabilities $3.00 15th of March, Previous quarter of Major Foreign Branches of U.S. Banks. E.ll June, September, (121) and December • Survey of Terms of Bank Lending. E.2 (111) [1.34] $ 3.00 Midmonth of February, May, August, and March, June, November September, and December • List of OTC Margin Stocks. E.7 (117) $ 5.00 January, April, February, May, August, and July, and November October Semiannual Releases • Balance Sheets of the U.S. Economy. C.9 (108) $3.00 October and April Previous year Annual Releases • Aggregate Summaries of Annual Surveys of $1.00 February End of previous June Securities Credit Extension. C.2 (101) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Index to Statistical Tables References are to pages A3-A68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 18-20 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 Deposits (See also specific types) Automobiles Banks, by classes, 3, 18-20, 21 Consumer installment credit, 40, 41 Federal Reserve Banks, 4, 10 Production, 47, 48 Turnover, 15 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) New issues, 34 EMPLOYMENT, 45 Rates, 24 Eurodollars, 24 Branch banks, 21, 55 Business activity, nonfinancial, 44 FARM mortgage loans, 39 Business expenditures on new plant and equipment, 36 Federal agency obligations, 4, 9, 10, 11, 31, 32 Business loans (See Commercial and industrial loans) Federal credit agencies, 33 Federal finance Debt subject to statutory limitation, and types and ownership of gross debt, 30 CAPACITY utilization, 46 Receipts and outlays, 28, 29 Capital accounts Treasury financing of surplus, or deficit, 28 Banks, by classes, 18 Treasury operating balance, 28 Federal Reserve Banks, 10 Federal Financing Bank, 28, 33 Central banks, discount rates, 67 Federal funds, 6, 17, 19, 20, 21, 24, 28 Certificates of deposit, 24 Federal Home Loan Banks, 33 Commercial and industrial loans Federal Home Loan Mortgage Corporation, 33, 38, 39 Commercial banks, 16, 19 Federal Housing Administration, 33, 38, 39 Weekly reporting banks, 19-21 Federal Land Banks, 39 Commercial banks Federal National Mortgage Association, 33, 38, 39 Assets and liabilities, 18-20 Federal Reserve Banks Commercial and industrial loans, 16, 18, 19, 20, 21 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 Time and savings deposits, 3 Federal Savings and Loan Insurance Corporation insured Commercial paper, 23, 24, 37 institutions, 26 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 33 Construction, 44, 49 Finance companies Consumer installment credit, 40, 41 Assets and liabilities, 37 Consumer prices, 44, 50 Business credit, 37 Consumption expenditures, 51, 52 Loans, 40, 41 Corporations Paper, 23, 24 Nonfinancial, assets and liabilities, 36 Financial institutions Profits and their distribution, 35 Loans to, 19, 20, 21 Security issues, 34, 65 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 Credit unions, 26, 40. (See also Thrift institutions) Flow of funds, 42, 43 Currency and coin, 18 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 21 Customer credit, stock market, 25 Foreign currency operations, 10 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

A80 GOLD Real estate loans—Continued Certificate account, 10 Financial institutions, 26 Stock, 4, 54 Terms, yields, and activity, 38 Government National Mortgage Association, 33, 38, 39 Type of holder and property mortgaged, 39 Gross national product, 51 Repurchase agreements, 6, 17, 19, 20, 21 Reserve requirements, 8 HOUSING, new and existing units, 49 Reserves Commercial banks, 18 INCOME, personal and national, 44, 51, 52 Depository institutions, 3, 4, 5, 12 Industrial production, 44, 47 Federal Reserve Banks, 10 Installment loans, 40, 41 U.S. reserve assets, 54 Insurance companies, 26, 30, 39 Residential mortgage loans, 38 Interest rates Retail credit and retail sales, 40, 41, 44 Bonds, 24 Consumer installment credit, 41 SAVING Federal Reserve Banks, 7 Flow of funds, 42, 43 Foreign central banks and foreign countries, 67 National income accounts, 51 Money and capital markets, 24 Savings and loan associations, 26, 39, 40, 42. (See also Mortgages, 38 Thrift institutions) Prime rate, 23 Savings banks, 26, 39, 40 International capital transactions of United States, 53-67 Savings deposits (See Time and savings deposits) International organizations, 57, 58, 60, 63, 64 Securities (See also specific types) Inventories, 51 Federal and federally sponsored credit agencies, 33 Investment companies, issues and assets, 35 Foreign transactions, 65 Investments (See also specific types) New issues, 34 Banks, by classes, 18, 19, 20, 21, 26 Prices, 25 Commercial banks, 3, 16, 18-20, 39 Special drawing rights, 4, 10, 53, 54 Federal Reserve Banks, 10, 11 State and local governments Financial institutions, 26, 39 Deposits, 19, 20 Holdings of U.S. government securities, 30 LABOR force, 45 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities issued by, 19, 20, 26 Loans (See also specific types) Rates on securities, 24 Banks, by classes, 18-20 Stock market, selected statistics, 25 Commercial banks, 3, 16, 18-20 Stocks (See also Securities) Federal Reserve Banks, 4, 5, 7, 10, 11 New issues, 34 Financial institutions, 26, 39 Prices, 25 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 MANUFACTURING Capacity utilization, 46 TAX receipts, federal, 29 Production, 46, 48 Thrift institutions, 3. (See also Credit unions and Savings Margin requirements, 25 and loan associations) Member banks (See also Depository institutions) Time and savings deposits, 3, 13, 17, 18, 19, 20, 21 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 Producer prices, 44, 50 VETERANS Administration, 38, 39 Production, 44, 47 Profits, corporate, 35 WEEKLY reporting banks, 19-21 Wholesale (producer) prices, 44, 50 REAL estate loans Banks, by classes, 16, 19, 20, 39 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Index to Volume 74 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Issue Text "A" pages Issue Text "'A" pages Index to Index to Total tables Total tables January 1-78 1-82 83-84 July 403-516 1-78 79-80 February.... 79-150 1-88 89-90 August 517-590 1-78 79-80 March 151-194 1-76 77-78 September.. 591-632 1-92 93-94 April 195-278 1-82 83-84 October 633-715 1-76 77-78 May 279-360 1-82 83-84 November.. 716-782 1-76 77-78 June 361-402 1-88 89-90 December .. 783-830 1-78 79-80 The "A" pages consist of statistical tables and reference Statistical tables are indexed separately (see p. A79 of this information. issue. AGRICULTURE, loans Bank Holding Company Act of 1956—Continued Amortization of losses by agricultural banks 546 Orders issued under Extension of comment period Ill A & P Holding Co 69 American Bankers Association 364, 370, 597, 783 Abbott Bank Group, Inc 187 Angell, Wayne D. Abington Bancorp, Inc 144 Federal margin regulations to equities application, Affiliated Banc Corporation 586 statement 453 Affiliated Banc Group, Inc 830 Federal Reserve System budget and expenses, Affiliated Bank Corporation of Wyoming 171 statement 437 Alabama Bancorp 829 Annual Report: Budget Review, 1987-88, publication 467 Albright Bancorp, Inc 144 Annual Report, 74th edition, 1987, publication 467 Alliance Bancorporation 511 Annual Statistical Digest, 1987, publication 791 Algemene Bank Nederland, N.V., Amsterdam, Articles The Netherlands 505 Exchange rates, adjustment, and J-curve 633 Alta Vista Bancshares, Inc 780 Financial system, developments in United States ... 1 Ameribanc, Inc 711 State and local government finance in current American Bancorporation 189 expansion 79 American Interstate Bancorporation, Inc 144 Home equity lines of credit 361 Ameritrust Corporation 69 Implementing monetary policy 419 AmeriTrust Corporation 341 Innovation and regulation of banks in 1990s 783 Ameritrust Indiana Corporation 69 International transactions of United States in 1987 . 279 AmSouth Bancorporation 277 Monetary policy report to Congress 151,517 Amsterdam-Rotterdam Bank, N.V., Amsterdam, Pension plans: funding, assets, regulatory environment 717 The Netherlands 148 Personal bankruptcies 591 AN B Corporation 710 Profitability of insured commercial banks in 1987 ... 403 Anmer Corporation 273, 111 Recent behavior of demand deposits 195 Apple Bancorp, Inc Ill Treasury and Federal Reserve foreign exchange Apple Creek Banc Corp 188 operations 109, 430, 645 Arrow Bank Corp 145 Audits, banking organizations 35 Ashton Bancshares, Inc Ill Automated clearing house mechanism, operational Aspen Bank Shares, Ltd 396 changes 110 Associated Acquisition Corporation 145 Automated currency-processing equipment, contract 39 Associated Banc-Corp 145 A T Acquisition Corporation 69 Athens Bancorp, Inc Ill Atlantic Bancorporation 70 BANK for International Settlements 213 Aylworth Proprietary Limited, Melbourne, Bank holding companies (For orders issued to individual Australia 275 companies under the Bank Holding Company Act, Baden Bancorp, Inc 625 see Bank Holding Company Act of 1956) Baer Holding Ltd., Zurich, Switzerland 628 Grandfathered nonbank banks, amendment ... 537, 752, Ballston Bancorp, Inc 494 760 Banco Bilbao-Vizcaya, S.A., Bilbao, Spain 683 Bank Holding Company Act of 1956 Banc One Corporation 174, 273, 515 Amendment of 1970 21, 92 Bancorp New Jersey, Inc 396 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Federal Reserve Bulletin • December 1988 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Orders issued under—Continued Orders issued under—Continued BancSecurity Corporation 586 Central Bank Shares, Inc 586 Bancshares of Dyer, Inc 711 Central of Kansas, Inc 273 Bank Corporation of Georgia 399 Central West Bancorporation 711 Bankers Trust New York Company 695 Century Financial Corporation 274 Bankfirst Corp 70 Cenvest, Inc 807 Bank Maryland Corp 339, 777 Chase Manhattan Corporation 391,704 Bankmont Financial Corp 70 Chattahoochee Bancorp, Inc 832 Bankmont Financial Corporation 628 Chemical Financial Corporation 188 Bank of Boston Corporation 276, 699 Chemical New York Corporation 393 Bank of Montreal, Montreal Quebec, Canada . .70, 628 Cheshire Financial Corporation 511 Bank of Montreal, Toronto, Canada 500 Chester County Bancshares, Inc. II 145 Bank of New England Corporation 133, 700 Chillicothe Bancshares, Inc 70 Bank of New York Company, Inc 257 Citizens and Southern Corporation 330, 710 Bank of Nova Scotia, Toronto, Canada 249 Citizens and Southern Georgia Corporation 330 Bank of Seoul, Seoul, Korea 684 Citizens Bancgroup, Inc 145 Bank of Tokyo, Tokyo, Japan 628 Citizens Bancorp 711 Bank of Tokyo, Ltd., Tokyo, J apan 685 Citizens Bancorp of Delavan Inc 145 Bankshares Corporation of Niceville 711 Citizens Bancshares Corporation 777 Bank Shares Incorporated 586 Citizens Bancshares of Beebe, Inc 396 Banks of Iowa, Inc 511 Citizens Financial Corporation Employee Stock Bank South Corporation 145, 399, 626, 710 Ownership Plan and Trust 70 Bank South Pensacola, Inc 626 Citizens Financial Group, Inc 396, 496 Bankworcester Corporation 70 Citizens Financial Holdings, B.V., Amsterdam, Barnett Banks, Inc 188, 710, 111 Netherlands 275 Bath State Bancorp 396 Citizens Holdings 274 BBOK Bancshares, Inc 711 Citizens National Bancorp, Inc 396 BCB Financial Services Corporation 70 Citizens National Bank Corporation 586 Berthoud Bancorp Employee Stock Ownership Citizens State Bancorp, Inc 711 Plan 70 City Financial Bancorp, Inc 384 Beverly Bancorporation, Inc 396, 829 City Holding Company 586, 777 Blue Rapids Bancshares, Inc 145 City National Bancorporation, Inc 396 B.M.J. Financial Corp 626 Clarkfield Bancshares, Inc Ill BMR Bancorp, Inc 70 Clifton Bancshares, Inc 829 BNB Holding Company, Inc 777 Clyde Financial Corporation 711 Boatmen's Bancshares, Inc 821 CNB Bancorp, Inc 70, 274 BOL Bancshares, Inc 171 CNB Bancshares, Inc 511 Boston Private Bancorp, Inc 145 CNB, Inc 396 Boulevard Bancorp, Inc 146 Colorado Western Bancorp, Inc 626 Bremer Financial Corporation 589 Columbia Bancorp 397 Britt Bancshares, Inc 626 Comerica Incorporated 59, 190, 809 Bryn Mawr Bank Corporation 329 Comm. Bancorp, Inc 188, 711 BSB Bancorp, Inc 711 Commerce Bancorp, Inc 711, 829 BSD Bancorp, Inc 399 Commerce Bancshares, Inc 397 Buffalo Bancshares, Inc 396 Commercial Bancorp of Georgia, Inc 511 Burkburnett Bancshares, Inc 586 Commercial Bancshares, Inc 780 Business Bancorp 276 Commercial Bank Shares, Inc 145 B/W Bancshares, Inc 339 Commercial National Financial Corporation 339 C & L Banking Corporation 70 Commex Financial Corporation 711 Cadiz Bancorp, Inc 339 Commonwealth Bankshares, Inc 711 Calhoun Bankshares, Inc 586 Community Banc, Inc 397 Canadian Imperial Bank of Commerce, Toronto, Community Bancorp, Inc 274 Canada 571 Community Bancshares of Alva, Inc 397 Capac Bancorp, Inc 145 Community Bankers, Inc 511, 586 Capital Bancshares, Inc 711 Community Bank System, Inc 711 Capital Directions, Inc 273 Community Financial Corporation 397 Capron Bancorp, Inc 339 Community First Financial, Inc 511 Cardinal Bancorp II, Inc 132 Community Group, Inc 148 Cardinal Bancshares, Inc 70, 626 Community National Bancorp, Inc 397 Carlson Bankshares, Inc 277 ComSouth Bankshares, Inc 188 Cascade State Corp 339 Constellation Bancorp 780 Casey County Bancorp, Inc 586 Constitution Bancorp of New England, Inc 394 Catherine Stuart Family Partnership 400 Cook Investment, Inc 74 CB&T Bancshares, Inc 273, 626, 710 Cooper Lake Financial Corporation 511 CBS Bancshares, Inc 829 CoreStates Financial Corp 276, 815 CBTC Holding Company, Inc 48 Costa Mesa Holding N.V., Curacao, Cedar Financial Holding, Inc 829 Netherlands Antilles 275 CeeBee Corporation 339 Costa Mesa Limited, London, England 275 Centennial Bancshares Corporation 511 County Bancorporation, Inc 829 Centerre Bancorporation 74, 136 C.P. Burnett & Sons, Inc 274 Central Bancorp, Inc 586 Credit Lyonnais, Paris, France 780 Central Bancshares of the South, Inc 188 CSB Bancshares, Inc 146 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 74 A83 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Orders issued under—Continued Orders issued under—Continued Cumberland Valley Bancshares, Inc 75 First Bancorp of Louisiana, Inc., Employee Dacotah Bank Holding Co 831 Stock Ownership Plan 274 Dahlonega Bancorp, Inc 829 First Bancorp of Tonkawa, Inc 74 Dakota Bankshares, Inc 74 First Bancorporation of Holdenville, Inc 778 Dakota Company, Inc 829 First Bancorporation of Ohio 817 Danville Bank Corp 512 First Bancshares, Inc 244 Danville Bancshares, Inc 626 Firstbank Holding Company of Colorado 510, 710 DB Holding Company, Inc 512 First Bank System, Inc 74, 148, 246, Delaware Bancshares, Inc 711 515, 628, 689, 824 Delhi Bancshares, Inc 714 First Business Bancshares of Kansas City, Inc. ... 71 Delmar Bancorp 397 First Canyon Bancorporation, Inc 146 Delta Bancshares Company 512 1st Carolina Bancshares, Ltd 778 Deposit Guaranty Corporation 510 First Chicago Corporation 706, 708 DG Bancshares, Inc 566 First Cicero Banc Corporation 146 Dime Financial Corporation 811 First City Acquisition Corporation 336 Dominion Bankshares Corporation 145, 274, 339 First City Bancorp, Inc 512 Douglas County Bancshares, Inc 512 First City, Inc 71 DSB Bancshares, Inc 512 First Colonial Bankshares Corporation 626 Dublin Bancshares, Inc 70 First Colony Bancshares, Inc 397 Duco Bancshares 145 First Commerce Corporation 274 Eastcorp, Inc 339 First Commercial Bancshares, Inc 340, 626 First Commercial Corporation 146 Eastern Bancshares, Inc 712 First Community Bancshares, Inc 188 Eastern Iowa Bancshares, Ltd 777 FirstCommunity Bankshares, Inc 778 Eastern Michigan Financial Corporation 49 First Corporation 397 Eastern Wisconsin Bancshares, Inc 586 First Cumberland Bank 75 Eastland Financial Corp 512 First Delhi Corporation 146 Eastland Savings Bank 512 First Dubuque Corp 397 Edgewood Bancshares, Inc 778 First Eastern Corporation 190,512 1889 Bankcorp 625 First Empire State Corporation 71 Eldorado Bancorp 70 First Executive Bancorp, Inc 829 Elkcorp. Inc 70 First Express of Nebraska, Inc 586 Embry Bankshares, Inc 70 First Farmers Financial Corporation 274 ENB Financial Corporation 397 First Financial Bancorp 586 ENB Holding Company 70 First Financial Corporation 71,626 E.N.B. Holding Company, Inc 829 First Financial Corporation of America 586 Enterprise Bancorp 188 First Financial Services of Moose Lake, Inc 342 Equimark Corporation 61 First Florida Banks, Inc 510, 771 Eufaula BancCorp, Inc 712 First Illini Bancorp, Inc 829 Excel Bancorp, Inc 512 First Interstate Bancorp 331,691 Exchange International Corporation 188 First Interstate Bancorp of Colorado 510 F & M Bancorporation, Inc 587 First Interstate Bancorp of Texas 331 F & M Financial Services Corporation 70 First Jacksboro Bancshares of Delaware, Inc 586 F & M National Corporation 512, 830 First Jermyn Corp 626 Fairland Holding Company, Inc 397 First Jones Bancorporation, Inc 188 Family Bancorp 626 First Junction City Bancshares, Inc 587 Farmers and Traders Bancshares, Inc 778 First Liberty Bancorp, Inc 146 Farmers Bancshares, Inc 339 First Litchfield Financial Corporation 626 Farmers National Bancorp of Cynthiana, Inc 512 First McAlIen International Bancshares, Inc 691 FarmMerc, Inc 512 FIRST MERCHANTS CORPORATION 778 Farmers State Holding Company 274 First Miami Bancorp, Inc 587 Fentura Bancorp, Inc 188 First Michigan Bank Corporation 587 FFB, Inc 177, 251 First Mid-Illinois Bancshares, Inc 71 FGC Holding Company 145 FIRST MIDWEST BANCORP, INC 712 Fidelity Bancshares, Inc 829 Firstmondovi, Inc 626 Fidelity BancShares (N.C.), Inc 274 FirstMorrill Co 626 Fidelity Company 340 First National Agency, Inc. of Cold Spring 75 Fifth Third Bancorp 70, 340, 397, 712 First National Agency of Baudette, Inc 274 FIH, L.P 145 First National Bancorp, Inc 829 FIH, Inc 145 First National Bank of Bemidjii Employee Stock First & Peoples Bancshares, Inc 829 Ownership Plan and Trust 146 First Affiliated Bancorp, Inc 626 First National Cincinnati Corporation 71, 146, First Alabama Bancshares, Inc 510 188, 778 First Alma Bancshares, Inc 397 First National Financial Corporation 274 1st American Bancorp, Inc 70 First National Hayes Center Corp 71 First American Bancshares of Blooming Prairie, First National Holding Company, Inc 399, 589 Inc 712 First National Massillon Corporation 275 First American Bank Corporation 342, 399, 714 First National of Nebraska, Inc 148, 778 First American Corporation 145, 397, 567 First NH Banks, Inc 148, 714, 780 First Bancorp Inc 778 First Nokomis Bancorp, Inc 188 First Bancorp, Inc 397 First of America Bancorporation-Illinois, Inc 512 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Federal Reserve Bulletin • December 1988 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Orders issued under—Continued Orders issued under—Continued First of America Bancorporation-Indiana 340 Grenada Sunburst System Corporation 513 First of America Bank Corporation .. 71, 340, 512, 778 Greenwood National Bancorporation 712 First Parker Bancshares, Inc 512 Guaranty Bancshares, Inc 780 First Peoples Financial Corporation 71 Gustine-Deleon Bancshares, Inc 627 First Peoria Corp 587 Hancock Bancorp, Inc 587 First Potomac Bancorp, Inc 587 Harris Bankcorp, Inc 70, 513 First Security Affiliates Inc 71 Harrison Bankshares, Inc 275 First Security Bancorp, Inc 188 Hassenstab Management Co., Inc 779 First Security Corporation of Kentucky 71 Hasten Bancorp 627 First Sioux Bancshares, Ltd 780 Havana Bancshares, Inc 712 First Southern Bancorp, Inc 71 Hazard Bancorp 830 First Sterling Bancshares, Inc 778 Heartland Community Bankshares, Inc 778 First Sun Capital Corporation 71 Heritage Bancorp, Inc 712 First Tennessee National Corporation 342 Heritage Enterprises II 72 First Union Corporation 71, 74, 188, 710 Heritage Racine Corporation 146 First United Bancorp, Inc 340 Herky Hawk Financial Corp 146 First United Bancorporation 397 Hickman Coloration 712 First United Bancorporation, Inc 587 High Point Financial Corp 830 First United Bancshares, Inc 626 Hodco, Inc 146 First United Corporation 275 Home Port Bancorp, Inc 587 First Valley BankCorp 829 Home State Bancorp, Inc 190 First Virginia Banks, Inc 712 Homestate Bancorp, Inc 340 First Wachovia Corporation 146, 710 Hometown Bancshares, Inc 779 First Weatherford Bancshares, Inc 512 Hongkong and Shanghai Banking Corporation, First Western Bancorporation 75 Hong Kong 137,589 First West Virginia Bancorp, Inc 275 Horizon Banks, Inc 830 First Wisconsin Corporation 513, 712, 829, 830 HRH Bancorp, Inc 693 First Woburn Bancorp, Inc 275 HSBC Holdings B.V., Amsterdam, The FKYN Acquisition Corp 830 Netherlands 137,589 Fleet Financial Group, Inc 62 Huntington Bancshares Incorporated 510 Fleet/Norstar Financial Group, Inc 399, 778, 781, Huntington Bancshares Kentucky, Inc 510 819 H & W Holding Company 779 Fleet/Norstar New York, Inc 781, 819 Illini Community Bancorp, Inc 513, 712 Florida National Banks of Florida, Inc 515 Independent Bancshares, Inc 398 FMB Financial Holdings, Inc 71 Independent Bankshares, Inc 75 F.N.B.C. of La Grange, Inc 397 Independent Community Bancorp, Inc 275 FNB Financial Corporation, Knoxville, Indiana National Corporation 712 Tennessee 587 Inland Bancorp, Inc 188 FNB Financial Corporation, Scottsville, International Brotherhood of Boilermakers, Iron Kentucky 71 Ship Builders, Blacksmiths, Forgers, and FNBH Bancorp, Inc 626 Helpers 189 Ford Bank Group, Inc 830 Integra Financial Corporation 774 Forest Bancorp 778 Intrex Financial Services, Inc 72 Fort Madison Financial Company 692 Investers Bancorporation, Inc 587 Fort Worth State Bancshares, Inc 340 Iowa National Bankshares Corp 830 IV Corporate Woods Acquisition, Inc 712 Jackson County Bancorp, Inc 712 Fourth Financial Corporation, Inc 397, 712 Jackson Hole Bancshares Corporation 398 Frandsen Financial Corporation 830 James Stuart, Jr. Family Partnership 400 Franklin Financial Services Corporation 188 Jasand, Inc 275 Freedom Bancshares, Inc 513 Jay Financial Corporation 830 Fryburg Banking Company 627 Johnson Heritage Bancorp, Ltd 712 FS Bancshares, Inc 513 Kanbanc, Inc 72 FSB Bancorp 275 Kansas Banc Corporation 712 Fulton Financial Corporation 188 Kansas Bank Corporation 587 FV Inc 148 Kansas State Financial Corporation 146 F.W.S.B. Corporation 829, 830 Kellet N.V., Curacao, Netherlands Antilles . .137, 589 GEBSCO, Inc 626 Kentucky Bancorporation, Inc 713 Georgetown Bancorp, Inc 340 Key Bancshares of Idaho, Inc 713 G. Fields Bancshares, Inc 830 Key Centurion Bancshares, Inc 398, 515 Gillespie Bancshares, Inc 627 KeyCorp 713 GL & ML, Limited 780 Keystone Financial, Inc 627 Golden Bancorp, Inc 397 Klein Bancorporation, Inc 146 Golden Bancshares, Inc 71 Laddonia State Bancshares, Inc 72 Golden Summit Corporation 510 Lafayette Bancorporation 587 Gower Bancshares, Inc 72 La Jolla Bancorp 190 Governors Bank Corporation 398 Lake City Bancorporation 275 Granby Bancshares, Inc 397 Lamoine Bancorp, Inc 513 Grand Bank Financial Corporation 712 Landmark Acquisition Corporation 189 Granite State Bankshares, Inc 778 Landmark Acquisition Corporation II 189 Greater Pacific Bancshares 340 Landmark Bancshares Corporation 189 Great Lakes Financial Resources, Inc 830 Landmark/Community Bancorp, Inc 398 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 74 A85 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Orders issued under—Continued Orders issued under—Continued Landmark Financial Corporation 340 National Penn Bancshares, Inc 713 Lane Financial, Inc 276 National Westminster Bank PLC, London, Langdon Bank Holding Company 72 England 142,254 Lena Spitzer Limited Partnership 714 NatWest Holdings, Inc 142, 254 Lewisburg Bancshares Corporation 587 NBA Holding Company 627 Lexington Bancshares, Inc 713 NBB Bancorp, Inc 713 Liberty National Bancorp, Inc 146, 275, 340, 587 NBD Bancorp, Inc 53, 589, 629 Lincoln County Bancorp, Inc 189 NBD Midwest Corporation 629 Lincoln Financial Corporation 72, 275, 627 NBD Northern Corporation 53 Lincoln Financial Corporation 513 NBM Bancorp, Inc 147 Linton Bancshares, Inc 72 NCB Corp 275 Litchfield Bancshares Company 72 NCNB Corporation 189, 587, 618 Logan Bancshares, Inc 275 NESB Corp 588 Lone Star Bancshares, Inc 627 New Bank of Mora 72 Long-Term Credit Bank of Japan, Limited, Newberry Bancorp, Inc 398 Tokyo,Japan 573 New Financial Corporation 511 Longview Capital Corporation 189 New Hampshire Savings Bank Corp 387 Magna Group, Inc 72, 713 NewMil Bancorp, Inc 513 MAH Bancorp, Inc 779 North Adams Bancshares, Inc 713 Malta Banquo, Inc 146 North Arkansas Bancshares, Inc 72 Manufacturers National Corporation 515, 830 Northern Financial, Inc 72 Marine Corporation 72 North Fork Bancorporation, Inc 588 Marine Midland Banks, Inc 137, 589 Northern Missouri Bancshares, Inc 340 Marion Bancshares, Inc 72 Northern of Tennessee Corp 340 Market Place Bancshares, Inc 275 Northern Trust Corporation 333, 502 Market Street Bancshares, Inc 627 Northland Insurance Agency, Inc 72 Mark Twain Bancshares, Inc 713 Northwest Bancorporation Inc 627 Marshall & Ilsley Corporation 180, 713 Northwest Illinois Bancorp, Inc 627 Maryville Bancshares, Inc 72 Norwest Corporation 510, 568, 710, 777, 828 Mascoutah Acquisition Company 713 Norwest Financial Services, Inc 510 Mason City National Bancorp, Inc 779 Norwich Financial Corp 627 Mason State Company 190 NSB Bancshares, Inc 627 McCamey Financial Corporation 146, 627 Ohio Bancorp 831 MCB Acquisition Company 72 Okawville Bancshares, Inc 147 MCorp 139, 191, 276 Old Kent Financial Corporation 75, 714, 781 MCorp Financial, Inc 191, 276 Old National Bancorp 73, 398 Mellon Bank Corporation 773 Omnibancorp 511 Menomonie Financial Services, Inc 191 ONB Corporation 713 Mercantile Bancorp, Inc 713 One Bancorp 713 Mercantile Capital Corp 713 One Bancorp, Ltd 510 Merchants Bancshares, Inc 72 Orbisonia Community Bancorp, Inc 189 Merchants National Corporation 148 Ormside Proprietary Limited, Melbourne, Meridian Bancorp, Inc 51, 515 Australia 275 MetroBanCorp 189 Orrstown Financial Services, Inc 275 Metropolitan Bancshares, Inc 189 Ostrander Bancshares, Inc 713 Miami Corporation 146 Otto Bremer Foundation 589, 781 Michigan National Corporation 780 Oxford Bank Corporation 398 Mid-Citco Incorporated 779 Oxford Financial Corporation 147 Middlefield Banc Corp 587 Overseas Finance Holdings Proprietary Limited, Midland Bank, PLC, London, England 252, 577 Melbourne, Australia 275 Midlantic Corporation 147 Owentown Bancorp, Inc., Employee Stock Midlothian State Bank Employees Stock Ownership Trust 340 Ownership Plan 189 Paducah Bank Shares, Inc 276 Mid-Mo Bancshares, Inc 72 Page Holding Company 831 Midwest Bankshares, Inc 828 Park Ridge Bancshares, Inc 398 Midwest Financial Group, Inc 75, 513 PBT Bancshares, Inc 276 Mid-Wisconsin Financial Services, Inc 587 Peoples Bancorp of Worcester, Inc 189 Miners Bancshares, Inc 830 Peoples Bancorporation 147, 191, 515 Minnesota-Wisconsin Bancshares, Inc 513 Peoples Bancorporation of Northwest Iowa 513 Minonk Bancshares, Inc 72 Peoples Heritage Financial Group, Inc 513 Mission-Valley Bancorp 830 Peoples, Inc 713 MNC Financial, Inc 398, 515, 780 Phelps County Bank Employee Stock Montclair Bancorp, Inc 627 Ownership Plan 588 Moore Financial Group Incorporated 693 Pikeville National Corporation 73, 588 Morrill Bancshares, Inc 830 Pioneer Bancorporation, Inc 340 Napa Valley Bancorp 497 Piper Bankshares, Inc 779 National Bancorp, Inc 72 Plains Capital Corporation 172 National Bancshares Waupun, Inc 147 PNC Financial Corp 389, 511 National City Bancshares, Inc 398 Pocahontas Bancorporation 779 National City Corporation 581,830 Pocahontas Bankshares Corporation 147 National Community Banks, Inc 831 Polk County Banco, Inc 73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Federal Reserve Bulletin • December 1988 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Orders issued under—Continued Orders issued under—Continued Porter Bancorp, Inc 513 Southern Development Bancorporation, Inc 399 Portsmouth Bank Shares, Inc 189 Southern Michigan Bancorp, Inc 781 Powell Valley Bankshares, Inc 340 South Holland Bancorp, Inc 341 Prairieland Bancorp, Inc 781 Southold Bancorp, Inc 276 Premier Bancorporation, Inc 276 Southside Bancshares Corp 588 Presidential Holdings, Inc 831 SouthTrust Corporation 56, 73, 189, 341, 588 Princeton National Bancorp, Inc 147 SouthTrust of South Carolina, Inc 779 Progressive Bank, Inc 399, 515 SouthTrust of Tennessee, Inc 779 Pro Group Inc 588 Southwest Financial Group of Iowa, Inc 147 Provident Bankshares Corporation 713 Southwest Missouri Bancorporation, Inc 514 P.T.C. Bancorp 779 Sovran Financial Corporation 75, 399, 504 Public National Bank Corporation 340 SPC/RAB Acquisition Corporation 75 Putnam-Greene Financial Corporation 398 Spring Rivers Bancshares, Inc 588 Quad County Bancshares, Inc 148 State Bancorp, Inc 831 R & J Financial Corporation 515 State Bancshares, Inc 341 Raymond Bancorp, Inc 513 Stockton Bancshares, Inc 341, 831 Ready Bancorp, Inc 513 Stuart Family Partnership 400 Remsen Financial Services, Inc. 514 Suburban Bancorp, Inc 627 Republic Bancorp, Inc 75, 779 Sullivan BancShares, Incorporated 779 RHNB Corporation 779 Sumitomo Bank, Limited, Osaka, Japan 147 Richwood Bancshares, Inc 713 Summit Bancorporation 73, 831 Riggs National Corporation 73 Sun Banks, Inc 390 Riley County Bancshares, Inc 55 SunTrust Banks, Inc 256, 390, 710 Rocky Mountain Bancorporation, Inc 831 Sunset Commercial Corporation 779 Roseville Bankshares, Inc 73 Suwannee Valley Bancshares, Inc 147 Royal Bancshares, Inc 73 S.Y. Bancorp, Inc 398 Royal Bank of Canada, Montreal, Canada 334 Sysco Financial, Inc 831 Royal Windsor Holding Corp 191 T&C Bancorp, Inc 276 Saban, S.A., Panama City, Republic of Panama .. .499 Taiyo Kobe Bank, Ltd., Kobe, Japan 621 St. Croix Banco, Inc 73 Taylor Bancshares, Inc 514 St. Croix Valley Bancshares, Inc 514 Telluride Bancorp, Ltd 779 St. Joseph Bancorporation, Inc 190 Terrabank Holding Corporation 779 Salem Bancorp, Inc 73 Terre DuLac Bancshares, Inc 628 Salin Bancshares of North Central Indiana, Inc. . .714 Thomas Drilling Company 190, 191 Sandy Spring Bancorp, Inc 73 Thomson Holdings, Inc 398 Sanwa Bank Limited, Osaka, Japan 399, 578 Throckmorton Bancshares, Inc 779 Scott Stuart Family Partnership 400 TJM Financial Corporation 74 Sea Island Bankshares, Inc 276 Toyo Trust and Banking Co., Ltd., Tokyo, Seaway Financial Corporation 588 Japan 623 Security Bancshares, Inc 147 Town & Country Bancorporation, Inc 780 Security Bancshares of Marion County, Inc 73 TraCorp, Inc 714 Security Bank F.M. Bank Shares 340 Traer Shares, Inc 341 Security Chicago Corp 73 Tripoli Bancshares, Inc 628 Security Corporation 189 Tri-County Bancshares, Inc 780 Security National Corporation 514, 779 Tri-State Financial Bancorp, Inc 247 Security Pacific Corporation 75, 173, 256, 819 Trustcorp, Inc 74, 190, 507, 781 Security State Bancshares, Inc 147 Trustcorp of Michigan, Inc 74 Security Trustco, Inc 514 TSB Bancorp, Inc 514 Selin Corporation 73, 75 Two Rivers Corporation 628 7L Corporation 510, 771 UNB Corp 514 Shawmut National Corporation 182 Union of Arkansas Corporation 695 Shelby Bancshares, Inc 73 Union Planters - CBC Bancorp Acquisition Shelby County Bancorp, Inc 714 Company 341 Shelby Investments, Inc 398 Unibancorp, Inc 276 Sheridan National Agency 147 Union Bancshares, Inc 514 Shorebank Corporation 140 Union Financial Corporation 514 Signal Bancshares, Inc 75 Union of Arkansas Corporation 510 Sioux National Company 277 Union Planters Corporation 147, 341, 628, 831 Somers Bancorporation 341 Union State Bancshares, Inc 328 Somerset Bancshares Corporation, Inc 147 United Bankshares, Inc 341 Somerset Bankshares, Inc 619 United Community Corporation 74, 515 Sooner Southwest Bankshares, Inc 714 United Jersey Banks 148 Soperton Bancshares, Inc 779 United National Bancorp 588 Soperton Naval Stores, Inc 779 United New Mexico Financial Corporation 147 South Alabama Holding Co., Inc 514 University National Bankshares, Inc 780 South Banking Company 73 Upbancorp, Inc 588 South Dakota Bancorp, Inc 829 UP Financial, Inc 147 Southeast Banking Corporation 147 USA Bancorp, Inc 341 Southeastern Bancorp, Inc 714 U. S. Bancorp 588, 813 Southern Bancorp, Inc 514 Valley Bancorporation 780 Southern Bankshares, Inc 514 Valley Bank Services, Corp 831 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 74 A87 Pages Pages Bank Holding Company Act of 1956—Continued Bank Merger Act—Continued Orders issued under—Continued Orders issued under—Continued Valley Bancshares, Inc 147 First Trust and Savings Bank of Kankakee 149 Valley Bank Shares, Inc 189, 191 First Virginia Bank-South Central 832 Valley National Corporation 57 Interstate Bank North 589 Valley Ridge Financial Corp 831 Johnstown Bank and Trust Company 76 Vista Bancorp, Inc 514 New Bank 715 Vista Bancorporation 831 Newco Bank 76 Vogel Bancshares, Inc 780 Norstar Bank 782 Volunteer State Bancshares, Inc 628 Old Kent Bank and Trust Company 76 Walhalla Bank Holding Company 74 Old Kent Bank of Kalamazoo 400 Warren Bancorp, Inc 714, 831 Peoples Bank of Bloomington 76 Warrior Bank Corporation, Inc 398 Ranson Iterim Bank, Inc 832 Washburn Bancshares, Inc 74 Richwood Interim Bank 715 Washington Commercial Bancorp 831 State Bank of Freeport 76 Waterloo Bancshares, Inc 831 Sovran Bank/Central South 629 Water Tower Bancorp, Inc 148 Toledo Trust Company 192 Wathena Bancshares, Inc 714 United Jersey Bank 715, 782 Waymar Bancorporation 399 Valley Bank and Trust Company 149 W B BANCORP, INC 398 Valley Bank of Nevada 67 Weld State Company 714 Bankruptcies, personal, article 591 Wesbanco, Inc 510 Bankruptcy Act of 1898 592 Westbank Financial Corporation 148 Bankruptcy Reform Act of 1978 593 West Coast Bancorp, Inc 341 Bank Service Corporation Act Wes-Tenn Bancorp, Inc 190 Orders issued under Western Illinois Bancorp, Inc 770 National Bank of Commerce of Mississippi 343 Western Iowa Consultants, Inc 514 SunTrust Service Corporation 149 West Iowa Banc Corp 399 Basle Committee 317 Westpac Banking Corporation, Sydney, Board of Governors (See also Federal Reserve Australia 714 System) Wheeler Bancshares, Inc 399 Consumer Advisory Council (See Consumer Will Bancorp, Inc 190 Advisory Council) Whitaker Bancorp, Inc 190 Federal Open Market Committee (See Federal Whitley City Bancshares, Inc 74 Open Market Committee) Workingmens Corporation 514 Fees (See Fees for Federal Reserve services to Wright Bancgroup Company 628 depository institutions) W.T.B. Financial Corporation 398 Litigation (See Litigation) Members Bank Holding Company Supervision Manual: Greenspan, Alan Supplement 1 381 Announcement of commendation to task force Banking supervision and regulation (See Supervision on market mechanisms 167 by Federal Reserve System) LaWare, John P., appointment as member 614 Banking system conditions, statement 458 List, 1913-88 630 Bank Merger Act Policy statements (See specific subject) Orders issued under Publications and releases (See Publications in 1987) ACB Bank 192 Regulations (See Regulations) Bank of Ripley 782 Rules (See Rules) Bank One, Mansfield 76, 629 Staff Central Bank 400 Changes Central Bank of the South 76 Cole, Roger T 653 Chemical Bank and Trust Company 192 Cornyn, Anthony 615 Chemical Bank Bay Area 76, 342 DiGioia, Anthony V 168 Citizens Bank 589 Enzler, Jared J 752 Citizens Bank and Trust Company 342, 589 Fox, Lynn Smith 653 Citizens Trust and Savings Bank 76 Greene, Mark N 752 Columbian Corporation 589 Hayes, Joseph H., Jr 168 Comerica Bank-Detroit 76 Horowitz, Fred 168 Commercial Bank of Champaign 342 McEntee, Elliott 791 Commercial Bank 76 Commercial Savings Bank 400 Malphrus, Stephen R 791 Commonwealth Bank 400 Weis, JohnR 168 County Bank Corp 149 List A70 F & M Bank-Martinsburg, Inc 516 Staff studies (See Staff Studies) Farmer & Merchants Bank and Trust Company .. 211 Statements to Congress (See Statements to Farmers State Bank of Alpha 277 Congress) Fayette County Bank 589 Thrift Institutions Advisory Council (See Thrift First City Bank of Dallas 832 Institutions Advisory Council) First Community Bank-Adrian Buckhannon, Bradfield, Michael, statement 450 Inc 76 Brady Task Force 448, 449 First Community Bank, Inc 782 Branch banks, New York 424, 444 First Interstate Bank of California 585 Brimmer and Company, Inc 596 First Nebraska Bank 192 Budget deficit, long-term policy to reduce, statement 293 First of America Bank—Straits Area 192 Bureau of Engraving and Printing 444 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Federal Reserve Bulletin • December 1988 Pages Pages CANADIAN Government securities 451 Economic and financial developments (See Monetary Canner, Glenn B., article 361 policy) Capital Adequacy Guidelines Economic situation, outlook for 1988, statement 301 Proposal for revised risk-based guidelines for U.S. Employee Retirement Income Security Act of 1974 banking organizations 317 (ERISA) 719 Risk based framework, statement on development . 376 Enhanced Structural Adjustment Facility 298 Chandler Act 593 Enzler, Jared J., Associate Director, Division of Check clearing and collection (See Fees and Float) Research and Statistics, resignation 752 Chicago Board of Trade 457 Equal Credit Opportunity Act 310, 742 Chicago Mercantile Exchange 456 Examination Council, White Collar Crime course 35 Citizens Guide to CRA, publication 311 Exchange Stabilization Fund 213 Cole, Roger T., appointed Assistant Director, Expenses (See Income and expenses) Division of Banking Supervision and Regulation ... 653 Expedited Funds Availability Act Commercial banks, profitability of insured Regulation CC to conform the definition of commercial banks in 1987, article, 403 "paying bank", amendment 653, 790, 796 Commodity Futures Trading Commission 101, 454 Regulation to carry out provisions, proposal ... 111,547 Commodity prices role in international coordination Schedule of availability of funds, pamphlet of economic policy, statement 103 published 752 Community Affairs Program 309 Standards for state or federal law 797 Community Reinvestment Act (CRA), statements 307, Title IV of H.R. 5094 742 733 Competitive Equality Banking Act of 1987 FARM Credit Administration 31 Grandfathered nonbank banks Farming (See Agriculture) Hearing 615 Federal Bureau of Investigation 31-37 Regulation Y, amendment 752, 760 Banking agency bank fraud course 35 Compliance Examination Program 308 Field Office Information Management System 36 Comptroller of the Currency 33, 317, 735 Federal Advisory Committee A72 Congressional Budget Office 293 Federal Deposit Insurance Corporation 33, 317, 405 Consumer Advisory Council Federal Home Loan Bank Board 33, 103 Appointment of new members 106 Federal Home Loan Mortgage Corporation 10 Endorsement 29 Federal margin regulations, application to equities, Listings 741, A73 statement 453 Meetings 232, 536, 752 Federal National Mortgage Association 10 Nominations sought for appointment of new Federal Open Market Committee members 467 Members and Officers A72 Consumer Bankers Association 362, 370, 373 Policy actions, record .. 40, 112, 234, 318, 468, 538, 654, Consumer credit (See also Credit) 754 Publications available 536 Federal Reserve Act 26 Consumer Credit Protection Act 467 Federal Reserve and Treasury foreign exchange Controlling Risk in the Payments System, operations (See Foreign exchange operations) publication 614 Federal Reserve Banks Cornyn, Anthony, Assistant Director, Division of Branches (See Branch banks) Banking Supervision and Regulation, resignation ... 615 Directors, list 345 Country Exposure Lending Survey, 408 Discount rates (See Interest rates) Credit (see also Loans) Fees (See Fees for Federal Reserve services to Home equity lines 27 depository institutions) Stock market (See Over-the-counter stocks list Income and expenses 167 of marginable, and Regulations T and U ) Federal Reserve Board (See Board of Governors) Truth in lending (See Regulation Z) Federal Reserve System (See also Board of Credit Practices Rule (See also Regulation AA) Governors) California exemption 617 Expenses, statement 400 Staff guidelines update, revision 615, 617, 653 Membership, admission of state banks ... Ill, 169, 233, Credit Union National Association 370 317, 382, 467, 537, 653, 753, 791 Criminal misconduct in financial institutions, Fees for Federal Reserve services to depository statement 31 institutions Cross, Sam Y„ reports 14, 209, 430, 645 Check clearing and collection Same day payment for checks, proposal and DEMAND deposits, developments, article 195 extension 382, 615 Demand deposit model 205 Priced services Demand Deposit Ownership Survey 199 Annual report on operations issued 381 Depository institutions (See also specific types) New prices and deadlines for returned check Reserve requirements (See Regulation D) services, approval 536 Depository Institutions Act of 1988, H.R. 5094, New schedules 38, 790 statements 733, 743, 746 Returned check services offered by banks to Deregulation and Monetary Control Act 5 depository institutions 494 DiGioia, Anthony V., appointed Assistant Director, Federal Savings and Loan Insurance Corporation 5 Division of Human Resources Management 168 Fergus, James T., article 361 Directors, Federal Reserve Banks and Branches, list ... 345 Financial Accounting Standards Board (FASB) 721 Discount rates at Reserve Banks (See Interest rates) Financial Institutions Regulatory and Interest Rate Control Act 438 EARNINGS and expenses (See Income and Financial Modernization Act 747, 751 expenses) Financial Services Oversight Act 101 Earnings credit rate 198 Financial Services Oversight Commission 101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 74 A89 Pages Pages Financial Services, survey on uses by small business 652 INCOME and expenses, Federal Reserve Banks Financial System, U.S., developments, article 1 Preliminary figures released, 167 Financial Modernization Act of 1987 91, 96, 101, 786 Industrial production, releases . 18, 89, 165, 215, 291, 374, Financing (See specific subject) 534, 604, 650, 731, 788 Float, same day payment for checks, proposal 382 Interagency Bank Fraud Enforcement Working Foreign exchange operations of Treasury and Group 31 Federal Reserve, reports 14, 209, 430, 645 Internal Revenue Service 721 Foreign sovereign debt securities to be marginable ... 653 International Bank Act 438 Fox, Lynn Smith, Special Assistant to the Board, International banking trends for U.S. banking resignation 653 markets, staff study 289 Free Trade Agreement (FTA) between the U.S. and International debt, statement 297 Canada 450 International Lending Supervision Act of 1983 378 Full Employment and Balanced Growth Act of 1978 International Monetary Fund 103, 298, 790 (See also Monetary policy: reports to Congress) ... 105, International transactions of the United States in 151, 517 1987 279 Funds, schedule of availability, pamphlet published .. 752 Interest rates Increase in discount rate of the Federal Reserve Banks 652, 663 GARN-ST GERMAIN Act of 1982 744, 745 General Capital Increase 299 J-CURVE, article 633 Glass-Steagall Act, statements .. 20-27, 91-103, 450, 747, Johnson, Manual H. 748, 751, 785 International debt, statement 297 Government finance in the current expansion, article 79 Government National Mortgage Association 10 Title IV of H.R. 5094 and the Community Gramm-Rudman-Hollings legislation 295 Reinvestment Act, statement 733 Greene, Mark N., Assistant Director, Division of Research and Statistics, resignation 752 KELLEY, Edward W., Jr., Greenspan, Alan Statement on Federal Reserve System's budget Statements and expenses 437 Commodity prices, role in international coordination of economic policy 103 LA WARE, John P., appointment as member, Board Depository Institutions Act of 1988, H.R. 5094 .. 746 of Governors 614 Economic situation, outlook for 1988 301 Legislation (See subject or specific name of act) Financial market; report to the President 445 Litigation, cases pending involving Board of Innovation and regulation of banks in 1990s 783 Governors ... 77, 149, 192, 277, 343, 401, 516, 590, 629, Modernization of financial system; Glass- 715, 782, 833 Steagall Act 20, 91 Loans (See Credit) Monetary policy and economic-financial Agricultural (See Agriculture) situation 225, 607 Long-term debt securities, amendment to extend October market crash, initiatives to strengthen "good faith" loan value 679 financial markets 312 Luckett, Charles A. Reducing budget deficits, long-term policy 293 Home equity lines of credit, article 361 Response.to October crisis 217 Personal bankruptcies, article 591 Group of Seven, statement 212 Guide to Business Credit and the Equal Credit Opportunity Act, publication 310 MAHONEY, Patrick I., article 195 Malphrus, Stephen R., promotion to Deputy Executive Director, Office of Executive Director HAYES, Joseph H., Jr., appointed Assistant for Information Resources Management 791 Director, Division of Human Resources Margin requirements Management 168 Buy-ins of securities, extension of 30-day period, Heller, H. Robert amendment 384 Criminal misconduct in financial institutions, Over-the-counter stocks (See Over-the-counter statement 31 margin stocks, list) 168,382,615,791,793 Depository Institutions Act of 1988, insurance Rules Regarding Delegation of Authority, provisions, statement 743 amendment to conform to Regulations G, T, and Implementing Monetary Policy, article 419 U 566 Nation's banking system, statement 458 McEntee, Elliott, Associate Director, Division of Home equity lines of credit Federal Reserve Bank Operations, resignation 791 Article 361 Mclntire School of Commerce, University of Statement 27 Virginia, Center for Financial Services Studies 373 Home Mortgage Disclosure Act McLaughlin, Mary M., article 403 Cited 311 Meade, Ellen E., article 633 Housing and Community Development Act of Melick, William R., article 279 1987, revision to incorporate amendments 664 Member banks (See State member banks and Revision to Regulation C to expand coverage 652 Depository institutions) Horowitz, Fred, appointed Assistant Director, Mergers, Bank Merger Act (See Bank Merger Act) Division of Human Resources Management 168 Mexico, economic measures announcement 790 Houpt, James V., staff study 289 Michigan, University of, Survey Research Center 372 House Government Operations Committee 26 Monetary Control Act 437, 438 Housing and Urban Development, Urban Monetary policy Development Action Grant 736 Article on implementation 419 Humphrey-Hawkins Act (See Monetary policy: Reports to Congress 105, 151, 517 reports to Congress) Statement 225, 607 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Federal Reserve Bulletin • December 1988 Pages Pages NATIONAL Electronic Payments Corporation 101 Commission 128 Neighborhood Housing Services (NHS) 309, 737 G, Securities Credit by Persons other than Neighborhood Reinvestment Corporation 309 Banks, Brokers, or Dealers List of OTC Marginable Stocks, additions and OCTOBER market crash, initiatives to strengthen deletions 793 financial markets 312 H, Membership of State Banking Institutions in Over-the-counter stocks, list of marginable, the Federal Reserve System revisions 168, 382, 615, 791, 793 Amendment to file information on forms prescribed by Securities and Exchange Commission 128 PAYMENTS mechanism and systems (See Fees and Competitive Equality Banking Act, amendment Transfers of funds) to implement Title VIII regarding amortizing Pension plans, article 717 losses on agricultural loans 546 Pension Benefit Guaranty Corporation 717 Public access to financial information regarding Presidential Working Group on Financial Markets 453 state member banks, proposed action 536 Pricing of Federal Reserve services (See Fees for J, Collection of Checks and Other Items and Wire Federal Reserve services to depository Transfers of Funds by Federal Reserve Banks institutions) Expedited Funds Availability Act of 1987 547 Pricing Policy Committee, appointment of Chairman 109 K, International Banking Operations Production, industrial (See Industrial production) Amendment to permit investments abroad Publications in 1988 through debt-for-equity swaps 232, 243 Annual Report, 74th edition, 1987 467 Q, Interest on Deposits Annual Report: Budget Review, 1987-88 437, 467 Amendment rescinding obsolete published Annual Statistical Digest, 1987 791 interpretations 121 Bank Holding Company Supervision Manual: T, Margin Credit Extended by Brokers and Supplement 1 381 Dealers Citizens Guide to CRA 311 Broker-dealers to help employees exercise stock Consumer's Guide to Mortgage Closings 536 options, amendment 110,129 Consumer's Guide to Mortgage Refinancing 536 Foreign sovereign debt securities to be Consumer's Guide to Mortgage Lock-ins 536 marginable Controlling Risk in the Payments System 614 Amendment 653, 679 Guidelines for real estate appraisal policies and Proposal 382 review procedures 381 List of OTC Marginable Stocks, additions and Guide to Business Credit and the Equal Credit deletions 793 Opportunity Act 310 U, Credit by Banks for the Purpose of Purchasing List of Marginable OTC Stocks, revisions 168, 382, or Carrying Margin Stocks 615, 791, 793 List of OTC Marginable Stocks, additions and Regulatory Service, new handbook 614 deletions 793 Schedule of Availability of Funds 752 X, Borrowers of Securities Credit Staff studies (See Staff studies) List of OTC Marginable Stocks, additions and Strategic Plan for Managing Risk in the Payments deletions 793 System 615 Y, Bank Holding Companies and Change in Bank Purdue University 596 Control Act Limitations placed on grandfathered nonbank REAL Estate Reform Act of 1987 (H.R. 3675), banks statement 304 Amendment 752, 760 Recognition Equipment, Inc 39 Proposed action 537 Regulation of banks in the 1990s, article 783 Z, Truth in Lending Regulations (Board of Governors, See also Rules) Amendment regarding adjustable-rate mortgage A, Extensions of Credit by Federal Reserve Banks caps 38, 47, 110, 130 Discount rate increase, amendment 663 Closed-end adjustable rate mortgages, proposed B, Equal Credit Opportunity action 752 Proposed revision Ill Home equity lines of credit 28 Revision to staff commentary regarding Preemption determination, Indiana state law 244 consideration of age in evaluating Proposed revision Ill creditworthiness 317 Revision to staff commentary regarding C, Home Mortgage Disclosure conversion features in adjustable-rate Home Mortgage Disclosure Act mortgages 317 Amendment issued for comment 467 AA, Unfair or Deceptive Acts or Practices Housing and Community Development Act of Credit Practices Rule, staff guidelines update, 1987, revision to incorporate amendments revision 615, 617, 653 from 652, 664 CC, Availability of Funds and Collection of D, Reserve requirements of depository institutions Checks Amendment rescinding obsolete published interpretations 121 Delayed disbursement practices, restrictions, Short-term loan made under long-term lending proposed action 537 commitments, amendment 545 Endorsement standards appendix, approved . 381, 383 Expedited Funds Availability Act, regulation E, Electronic Fund Transfers Proposed revision Ill issued 466, 475 Revision to staff commentary regarding "Paying Bank" definition to conform with point-of-sale/automated clearinghouse services . 317 Expedited Funds Availability Act 653, 796 F, Securities of State Member Banks Standards for state law or federal law 797 Amendment to file information on forms Uniform Commercial Code, New York, and prescribed by Securities and Exchange Illinois law 679 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 74 A91 Pages Pages Reserve requirements Statements to Congress—Continued Increase in transaction accounts and liabilities 109 Financial markets, report to the President Right to Financial Privacy Act 34 (Chairman Greenspan) 445 Rubin, Laura S., article 79 Financial system modernization; Glass-Steagall Rules (See also Regulations) Act (Chairman Greenspan) 20 Regarding availability of information Free trade agreement between United States and Proposed amendment regarding release of Canada (Michael Bradfield, General Counsel, reports of examination 34 Board of Governors of the Federal Reserve Regarding delegation of authority System 450 Buy-ins of securities, extension of 30-day Home equity lines of credit (Governor Seger) 27 period, amendment 384 International debt (Vice Chairman Johnson) 297 Cease-and-desist orders, authorization for Monetary policy and economic-financial situation Federal Reserve Banks to stay, modify, (Chairman Greenspan) 225, 607 terminate, or suspend 327 October market crash, strengthening financial Oaths and affirmations to be administered by markets (Chairman Greenspan) 312 Board's General Counsel, amendment 327 Real Estate Reform Act of 1987 (H.R. 3675) Revision to make regulation conform to (William Taylor, Staff Director, Division of Regulations G, T, and U, amendment 566 Banking Supervision and Regulation) 304 Stay request denials by the Board's General Reducing budget deficits, long-term policy Counsel, amendment 132 (Chairman Greenspan) 293 Temporary director interlocks authority to grant Response to October stock market crisis requests for, amendment 384 (Chairman Greenspan) 217 Titles of Board Officials, changes, amendment 48 Stock market credit Over-the-counter stocks (See Over-the-counter stocks, list of marginable) Regulations G, T, and U (See Regulations) SECURITIES (See specific types) Strategic Plan for Managing Risk in the Payments Securities and Exchange Commission 97-101,454 System, publication 615 Securities dealers, supervisory policy statement Supplemental Financing Facility-International issued 381 Monetary Fund 213 Securities Exchange Act of 1934 454 Survey of Consumer Attitudes 372 Seger, Martha R. Community Reinvestment Act, statement 307 TABLES (For index to tables published monthly, Home equity lines of credit, statement 27 see guide at top of p. A81; for special tables Simpson, Thomas D., article 1 published during the year, see list on p. A69.) Small Business Administration 736 Task Force on Market Mechanisms 167 Staff studies Tax Reform Act of 1986 79, 84-87, 362, 409, 720 International banking trends for U.S. banks and Taylor, William, statements 304, 376 banking markets 289 Testimony (See Statements to Congress) State member banks Thrift Institutions Advisory Council Capital adequacy (See Capital adequacy) Appointment of new members, 167 Membership in Federal Reserve System (See List A73 Federal Reserve System) Training Mergers (See Bank Merger Act) White collar crime 35 Statements to Congress (including reports and Transfers of funds letters) Fees (See Fees for Federal Reserve services to Banking system conditions (Governor Heller) 458 depository institutions) Capital adequacy guidelines, development of risk Regulation E (See Regulations) based framework (William Taylor, Staff Treasury and Federal Reserve foreign exchange Director, Division of Banking Supervision and operations (See Foreign exchange operations) Regulation) 376 Truth in Lending Act 28 Community Reinvestment Act (Governor Seger) ... 307 Truth in Lending, Regulation Z (See Regulations) Community Reinvestment Act and Title IV of Truth in Savings 742 H.R. 5094 (Vice Chairman Johnson) 733 UNIFORM Bank Bribery Act 32 Criminal misconduct in financial institutions Uniform Commercial Code, New York and Illinois (Governor Heller) 31 law and Regulation CC, amendment 679 Depository Institutions Act of 1988 U.S. League of Savings Institutions 370 Competition and concentration of resources, U.S. Justice Department 31-37 implications (Chairman Greenspan) 746 U.S. Treasury Department 25, 790 Insurance provisions (Governor Heller) 743 Economic situation, outlook for 1988 (Chairman WARSHAWSKY, Mark J., article 717 Greenspan) 301 Weis, John R., promoted to Associate Director, Federal margin regulations applied to equities Division of Human Resources Management 168 (Governor Angell) 453 Wolfson, Martin H., article 403 Federal Reserve System, 1988 budget and World Bank 103, 298, 299, 790 expenses (Governors Angell and Kelley) 437 World Bank Executive Board 29 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 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 Ellen V. Futter 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. Pairy 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 John G. Stoides1 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 Kent M. Scott Oklahoma City 73125 Patience S. Latting David J. France Omaha 68102 Kenneth L. Morrison Harold L. Shewmaker DALLAS 75222 Bobby R. Inman Robert H. Boykin Hugh G. Robinson William H.Wallace Tony J. Salvaggio1 El Paso 79999 Peyton Yates Sammie C. Clay Houston 77252 Walter M. Mischer, Jr. Robert Smith, III1 San Antonio 78295 Robert F. McDermott Thomas H. Robertson SAN FRANCISCO 94120 Robert F. Erburu Robert T. Parry Carolyn S. Chambers Carl E. Powell John F. Hoover1 Los Angeles 90051 Richard C. Seaver Thomas C. Warren2 Portland 97208 Paul E. Bragdon Angelo S. Carella1 Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett1 Seattle 98124 Carol A. Nygren Gerald R. Kelly1 •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. Digitized for FRA2. SEExRec utive Vice President. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A93 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories April 1984 / ALASKA •/ / i \ 1 i © / A S? 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 NEW HANDBOOK AVAILABLE FROM THE containing all Board regulations and related statutes, REGULATORY SERVICE interpretations, policy statements, rulings, and staff opinions. For those with a more specialized interest in The Federal Reserve Board has announced publica- the Board's regulations, parts of this service are pubtion of The Payment System Handbook. The new lished separately as handbooks pertaining to monetary handbook, which is part of the Federal Reserve Reg- policy, securities credit, consumer affairs, and, availulatory Service, deals with expedited funds availabil- able for the first time in September 1988, The Payment ity, check collection, wire transfers, and risk-reduc- System Handbook. tion policy. It includes Regulation CC (Availability of For domestic subscribers, the annual rate for The Funds and Collection of Checks), Regulation J (Col- Payment System Handbook is $75. For subscribers lection of Checks and Other Items and Wire Transfers outside the United States, the price, including addiof Funds by Federal Reserve Banks), the Expedited tional air mail costs, is $90. For the Federal Reserve Funds Availability Act and related statutes, official Regulatory Service, not including handbooks, the an- Board commentary on Regulation CC, and policy nual rate is $200 for domestic subscribers and $250 for statements on risk reduction in the payment system. In subscribers outside the United States. All subscription addition, it contains detailed subject and citation in- requests must be accompanied by a check payable to dexes. It is published in loose-leaf binder form and is "Board of Governors of the Federal Reserve updated monthly. System." Orders should be addressed to Board of To promote public understanding of its regulatory Governors of the Federal Reserve System, P.O. Box functions, the Board publishes the Federal Reserve 27531, Richmond, Virginia, 23261-7531. Regulatory Service, a three-volume loose-leaf service 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 i ^ T Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis