Federal Reserve Bulletin, 1989-01

VOLUME 75 • NUMBER 1 • JANUARY 1989 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 L DROUGHT, AGRICULTURE, AND THE ies to retain them without further approval; ECONOMY proposed revisions to the official staff commentaries for Regulations E and Z. In 1988, for the fourth time in the past fifteen years, drought and its repercussions Change in Board staff. dominated agricultural developments. The Admission of five state banks to memberlosses to drought reduced the growth of ship in the Federal Reserve System. gross national product, boosted consumer food prices, and altered the financial prospects of farmers in diverse ways. Previous 20 RECORD OF POLICY ACTIONS OF THE episodes of drought suggest, however, that FEDERAL OPEN MARKET COMMITTEE both farmers and the economy can adjust At its meeting on September 20, 1988, the fairly readily to drought's adversities. Committee approved a directive that called for maintaining the current degree of pres- 13 INDUSTRIAL PRODUCTION sure on reserve positions. The members decided that somewhat greater reserve re- Industrial production increased an estistraint would be acceptable, or slightly mated 0.4 percent in October. lesser reserve restraint might be acceptable, over the intermeeting period, depending on 15 STATEMENT TO THE DEFICIT indications of inflationary pressures, the COMMISSION strength of the business expansion, the be- Alan Greenspan, Chairman, Board of Gov- havior of the monetary aggregates, and deernors, discusses the federal government velopments in foreign exchange and domesdeficit in terms of its long-term corrosive tic financial markets. The reserve impact and the compelling case for acting conditions contemplated by the Committee promptly to bring it down, before the Na- were expected to be consistent with growth tional Economic Commission, November of M2 and M3 at annual rates of about 3 16, 1988. percent and 5 percent respectively over the four-month period from August to Decem- 19 ANNOUNCEMENTS ber. The members agreed that the intermeeting range for the federal funds rate Change in reporting requirements under the should be left unchanged at 6 to 10 percent. Home Mortgage Disclosure Act. Proposal to rescind an existing rule in Reg- 25 LEGAL DEVELOPMENTS ulation Y permitting bank holding companies to acquire operations subsidiaries; pro- Various bank holding company, bank serposal to permit bank holding companies vice corporation, and bank merger orders; that have established operations subsidiar- and pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ai FINANCIAL AND BUSINESS STATISTICS A84 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS These tables reflect data available as of November 28, 1988. A86 FEDERAL RESERVE BOARD A3 Domestic Financial Statistics PUBLICATIONS A46 Domestic Nonfinancial Statistics A55 International Statistics A89 INDEX TO STATISTICAL TABLES A71 GUIDE TO TABULAR PRESENTATION, A9i FEDERAL RESERVE BANKS, STATISTICAL RELEASES, AND SPECIAL TABLES BRANCHES, AND OFFICES A82 BOARD OF GOVERNORS AND STAFF A92 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Drought, Agriculture, and the Economy This article was prepared by John Rosine and backs that may have been only partly offset by Nicholas Walraven of the Board's Division of insurance indemnities or federal disaster pay- Research and Statistics. Diana Lis ton Stella ments. contributed research assistance. Overall, farmers probably were better positioned to withstand drought losses in 1988 than In 1988, for the fourth time in the past fifteen they would have been three or four years earlier, years, drought and its repercussions dominated when the farm financial problems of the 1980s agricultural developments. The drought came in were at their most intense. A recovery in the a year of reduced plantings and cut the total farm economy that began in 1986 picked up output of crops to a level 20 percent below the momentum in 1987, and most of the readings for average of the four preceding years; it shriveled 1988 look favorable despite the drought. In parthe output of feed grains to roughly half the ticular, most farmers continue to have an ample four-year average. The loss of production caused cash flow that should enable them to service debt a steep rise in the prices received by farmers for in the period ahead; and, while some droughtcrops, 23 percent overall from March to August. induced loan defaults may occur, most farm The price of soybeans increased nearly 40 per- lenders should be able to handle them without cent over that period, and corn prices surged incurring a serious decline in profitability. despite huge surpluses from previous harvests. The drought had a noticeable effect on overall measures of U.S. economic performance in 1988. DROUGHT LOSSES AND REAL GNP According to estimates by the Department of Commerce, the output losses in agriculture re- In most years, changes in farm output do not duced the annual rate of real growth in the gross have a marked influence on the growth in gross national product nearly a full percentage point, national product. However, as was evident in on average, over the last three quarters of 1988. 1988, swings in farm output sometimes are big In addition, the initial shock to crop prices began enough to have a sizable influence on GNP showing up quickly at the consumer level and growth, at least over the relatively short span of added to the rate of increase in the consumer three or four quarters. These swings pose special price index over the summer months and into challenges for national income accountants at the early autumn. Other repercussions of the sharp Department of Commerce, and they also necesrise in crop prices, including the effects on live- sitate added caution in the interpretation of instock and meat prices, probably still are working coming GNP data. their way through the economy, but perhaps with less intensity than many observers had expected Economic Considerations initially. In the farm sector itself, the drought's effects The broad economic effects of the drought are were dramatic, but uneven. At one extreme, relatively straightforward. Drought causes a onethose producers with little or no loss in produc- time reduction in farm crop output and in the tion and large stockpiles from previous harvests economy's aggregate output. Usually, this reducbenefited enormously from the steep rise of crop tion is reflected in gross national product mainly prices and ended up better off than they would as drawdowns in the inventories of crops owned have been had the drought not occurred. How- by farmers and those owned or financed by the ever, a number of other producers suffered set- government's Commodity Credit Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1989 On the demand side, the price increases caused daily output during the quarter. Similarly, one by drought reduce both the volume of farm can determine the quarterly output of many exports and the real income and spending of goods by counting the number of items that come households; when inventories are small initially, off assembly lines each day; or, alternatively, the price increases will be larger, requiring that one can infer output from the labor and capital real consumer spending and exports absorb more inputs that are employed on the assembly line. of the shock to output. The rate of growth of real Some production processes (building a sky- GNP slackens as crop losses mount, but then scraper, for example) may take a relatively long bounces back when the drought ends. Typically, time, but the value added in the process is farm crop output has rebounded in the year after virtually certain to yield a finished product. a drought (chart 1). During the rebound the Hence, progress in production can reasonably be effects of the losses on GNP are reversed, and, allocated to appropriate quarters. for a time, real GNP growth is higher than would Agriculture differs from these production prootherwise be the case. cesses. Crop production takes a relatively long time, a year for many crops; and, because natural Accounting Considerations disaster poses a risk during the growing season, there is no certainty until harvest that an actual The challenges of measuring the changes in farm product will result. In addition, inferring output output in the national income and product ac- from the spending on purchased inputs is difficult counts stem largely from the annual nature of the because rainfall—a given of nature—often is the crop production process and the difficulties of dominant influence on crop production. dividing that process into quarterly segments. As a result of these difficulties, the Department Because farm output is influencing GNP growth of Commerce, in the early part of the annual crop so heavily at present, it is worthwhile sorting cycle, is forced to devise quarterly estimates of through some of these accounting issues in de- farm output from a forecast, prepared by the tail. Department of Agriculture, of what annual pro- Many production processes that are captured duction eventually will be. Drought, of course, in GNP are of short duration. Some services— causes production to deviate from its anticipated haircuts, for example—are produced each day, course. However, evidence that output is irreand a quarterly estimate of the production of versibly off track often will not be available until these services can be obtained by adding up the midyear or later. Because analysts cannot predict the duration of the drought, they cannot know for sure how much production was lost 1. Crop production1 until late in the year. Along the way, considerable judgment necessarily enters into the quarterly estimates of farm output. Accounting for the 1988 Losses The 1988 drought occurred somewhat earlier in the farm production cycle than most previous droughts, and by mid-July it was fairly clear that 1 I I I I 1 I I I I I I I I 1 I I I 70 drought losses would be severe. In its July report 1965 1970 1975 1980 1985 1988 on real gross national product, the Commerce 1. The series plotted is the index of farm crop production compiled Department estimated an annual loss of $11 by the U.S. Department of Agriculture; the index is constructed by billion. The estimate was raised to $14 billion a weighting the physical output of crops by the prices of a base period. The 1988 plot is an estimate from the U.S. Department of Agriculture, month later, reflecting surveys by the Agriculture "Crop Production Report," November 9, 1988. Here and in following Department that showed further deterioration of charts the shaded areas denote years in which losses from drought were substantial. crops into early August. Subsequently, crop con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Drought, Agriculture, and the Economy 3 ditions improved slightly, and the estimate of the DROUGHTS AND CONSUMER FOOD PRICES annual loss was scaled back a bit, to $12.8 billion in the November GNP report. In each drought of the past fifteen years the Of the total annual loss, about one-sixth was tightening of supplies of agricultural crops has allocated to the second quarter of 1988, roughly boosted crop prices (chart 2) and stirred conone-third was allocated to the third quarter, and cerns that the cost of food to consumers would about one-half was allocated to the fourth quar- rise dramatically. ter. In arriving at this quarterly breakdown, the However, in each of these episodes—at least Department of Commerce took account both of up to the current one—the runup in consumer the time at which crop losses were recognized food prices, relative to the general rate of inflaand of the time at which the affected crops would tion, has tended to be reversed fairly quickly, have been harvested. with little lasting influence on overall price According to the estimates of drought loss in trends. This limited price response to drought is the GNP report released in late November, real evident in table 1 and in chart 3, which show the farm output in the fourth quarter, at an annual behavior of food prices and other consumer rate, was more than $25 billion below what it prices in the three most recent episodes of would have been in the absence of drought. drought. Analysts at the Department of Agriculture have projected that farm output will rebound in 1989, 2. Crop prices1 as it has in years following past droughts, and 1977 = 100, ratio scale officials at the Department of Commerce have indicated that this rebound will add substantially to the rate of GNP growth in the first quarter of the new year. A Cautionary Note I I I I I I I I I I I I I I I I I ll During a period of severe drought losses—and 1965 1970 1975 1980 1985 1988 during the period of recovery from drought—the interpretation of short-run changes in gross na- 1. The series plotted is the index of prices received by farmers for crops, compiled by the U.S. Department of Agriculture and seasontional product requires added caution. Most ally adjusted and transformed into quarterly averages by the authors. economists view such changes as being caused The last plot is the average for October and November 1988. mainly by shifts in aggregate demand; and ob- 1. Changes in consumer prices during the six served changes in real GNP are used to draw quarters after the onset of selected droughts1 inferences about the strength of demand. Such Percent, compound annual rate inferences may be misleading, however, if a All items drought-induced change in GNP is taken to be a Year of drought Food All items excluding food excluding food and energy signal of underlying growth in demand. Estimates of GNP that adjust for the drought-related 1974 8888....8888 9999....2222 9999....0000 swings in farm output probably provide a better 1980 7777....6666 11110000....0000 11110000....0000 1983 3333....3333 4444....2222 4444....9999 gauge of the underlying course of the economy and the associated pressures of demand on the 1. Changes are measured from the second quarter of the year in which the drought occurred to the fourth quarter of the following year. economy's resource base. Thus, fundamentally, the economy probably was stronger over the last three quarters of 1988 than was indicated by the Offsetting Macroeconomic Influences changes in GNP alone. Likewise, the economy's fundamental strength in the first quarter of this One reason why the droughts of recent years year likely will be exaggerated by the projected have not led to larger and more sustained inrebound in farm output. creases in consumer prices is that, on each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1989 3. Effect of poor crops on food prices Adjustments within the Farm Sector Quarterly change in percent, annual rate 1974-76 Adjustments within farming frequently have facilitated a relatively .smooth adjustment of the economy to drought losses. More than most 20 nations, the United States tends to carry large , CPI for food inventories of farm crops that can be drawn upon CPI excluding food f in the event of a poor harvest. In addition, consumers of farm crops, particularly farmers who fatten livestock for slaughter, often curtail demand after a small crop and thus begin relieving the pressures on crop prices fairly soon after harvest. The prospect of bringing unused acreage back into production in the next growing cycle I I I I I I I also may help to stem upward price pressures; 1980-82 indeed, because futures traders tend to anticipate the next crop, crop prices may begin falling quite early in the next cycle if crops get off to a good start. The degree to which these adjustments within farming soften the effects of drought can vary a lot, depending on initial conditions such as the 1983-85 size of stockpiles and on the severity and dura- 10 tion of drought. For example, because of the drought in 1988, stocks of the major crops are likely to be reduced considerably before the 1989 harvest (chart 4); thus, should drought recur in 1989, inventories would provide less protection SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 4. Crop inventories Supply at beginning of harvest, in months' occasion, important macroeconomic influences were working in an opposite direction, helping to restrain increases in food prices. In 1974, a deepening economic recession forestalled larger price increases at the consumer level. In 1980, spiraling interest rates and sluggish growth blunted upward price pressures in farm commodity markets. In 1983, a rapidly appreciating dollar restrained price advances. Unfortunately, the effect of these countervailing influences on food prices is difficult to determine with a high degree of statistical precision because the number of drought episodes is so few and the factors influencing prices are so numerous. The coincidence of past droughts with the countervailing macro- 1. Supply is measured by relating stocks at the beginning of a economic influences probably was happen- harvest to total use of the crop during the preceding marketing year. The primary data are from the U.S. Department of Agriculture; they stance, and in a more expansionary economy, have been adjusted to months' supply by the authors. For wheat, the drought losses might well generate price effects beginning of the harvest is June 1; for corn and soybeans it is September 1. The figures for 1989 are derived from projections by the different from those observed in the past. Department of Agriculture as of December 12, 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Drought, Agriculture, and the Economy 5 5. Acreage withheld from production under 1989 will likely be smaller than in recent years, government programs and plantings are expected to be larger. Millions of acres Transmission of a Drought Shock — k rm 75 to Consumers Other ways in which the impact of the drought is / \ J — \ — 50 cushioned center around the mechanisms by which the initial shock to farm crop production — 25 spreads through the economy. The transmission process works through many channels. Some 1 1 1 1 1 1 1 1 1i K u u ul 1 1 \ 1 / 1I 1 1 1 1 1 1965 1970 1975 1980 1985 1988 carry the output shock through farm prices quickly and directly to consumers. Other chan- SOURCE. U.S. Department of Agriculture. The figure for 1988 is nels carry the effects so slowly and indirectly that preliminary. when they finally show up at the supermarket, they may be diffused and inextricably entangled against price increases and the associated adjust- with other influences. In some instances, the ments in consumption. By contrast, more spare initial price increases due to the drought already acres can be brought back into production in are being reversed by the time the later price 1989 than in some previous droughts. In recent effects appear to consumers. To categorize these years, the government has encouraged producers channels more rigorously, it is convenient to to take large amounts of acreage out of produc- consider three kinds of food commodities that tion in an effort to reduce surplus stocks (chart differ mainly in the timing of their production 5). These acreage retirements were especially responses to drought. Although the discussion large in 1987 and 1988. However, with the focuses on drought effects, other influences, such drought causing crop inventories to contract as the trends in labor costs, also have been much faster than had been expected, policy now shaping price developments over this period and is shifting back toward less production restraint. would need to be considered in a more general The amount of land taken out of production in discussion of price determination. 2. Changes in consumer food prices, drought of 1988' Percent Drought PPrree--ddrroouugghhtt,, MMEEMMOO:: RReellaattiivvee iimmppoorrttaannccee iinn tthhee 11998877 DDeeccee MM mm aa bb yy ee rr 11 99 11 88 99 88 88 77 ttoo May to September October ffoo DD oo ee dd cc ee pp mm rrii bb cc ee ee rr iinn 11 dd 9988 ee 77 xx ,, 1988 Food 3.5 3.6 9.2 .2 100.0 Fresh fruits and vegetables 17.9 -13.9 39.2 -1.1 7.2 Cereals and bakery products 4.2 7.3 11.4 .7 8.4 Fats and oils 1.7 8.0 13.2 1.0 1.6 Processed fruits and vegetables... 4.6 10.5 13.3 1.3 4.0 Poultry -9.2 14.4 60.2 -3.0 2.7 Eggs -17.5 17.1 62.2 2.9 .9 Beef 6.7 9.6 7.4 -.3 6.4 Pork -1.8 5.4 -9.8 -.8 3.8 Food away from home 3.6 4.3 5.0 .3 38.6 Dairy 1.8 1.6 4.2 .9 7.7 Fish 10.0 3.1 .7 1.5 2.4 Other meats 4.2 0.4 2.7 .2 2.6 Sugar and sweets 1.7 3.3 8.5 .3 2.2 Nonalcoholic beverages -3.5 .9 4.0 .1 5.1 Other prepared foods 4.2 2.5 6.0 .8 6.4 1. Calculations are based on data from the consumer price index for all urban consumers. Changes for periods longer than one month are at compound annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1989 Crops on a Short Production Cycle. Because crop losses to the consumer level through this fresh fruits and vegetables are perishable, retail channel may be lengthy. The key factor affecting supplies turn over quickly. Hence, production the transmission is how cattle and hog producers losses tend to affect consumer prices within a alter their breeding herds in response to drought. matter of days; but because these crops have a These herds are capital assets, whose value is short growing cycle—60 to 120 days—prices can determined by the number of marketable animals also fall quickly. This pattern apparently held in and the income that these assets are expected to 1988. From May to September, consumer prices generate over time. If farmers are not expecting of fresh fruits and vegetables rose about 40 income from the assets to be particularly high, percent at an annual rate (table 2); in October, the extra costs of feed imposed by a drought may these prices fell sharply, as a new crop less trigger an extensive liquidation of herds, adding affected by the summer's heat and drought began to meat supplies in the near term (and lowering to reach consumers. prices) but reducing supplies in the longer term (and raising future prices). Conversely, when Crops on an Annual Cycle. Price increases for farmers expect strong earnings, many may try to foodstuffs that are on annual production cycles absorb the temporary costs connected with and are storable also appear relatively quickly in drought, rather than sell off profitable assets the supermarket, reflecting the immediate reval- prematurely. uation of farm and food inventories when crop In 1988, the selloff appears to have been relasupplies tighten. In 1988, for example, higher tively moderate, at least for cattle. After several grain prices translated directly and quickly into years of liquidating herds, cattle producers are accelerated increases in the consumer prices of perhaps becoming more eager to hold their anicereal and bakery products. Similarly, higher mals in the hope of enjoying better profits in the soybean prices prompted quick upward moves in future. In addition, subsidies the federal governthe retail prices of vegetable oils. Higher farm ment provided in the wake of the drought encourprices for processed fruits and vegetables, many aged producers to retain their livestock. Furtherof which are grown on an annual cycle, boosted more, the nation's cattle herd has shrunk the inflation rate for these foods at the consumer substantially since the mid-1970s, so perhaps level. With all else constant, prices of such producers find more easily the hay or rangeland products will remain at higher levels than would needed to carry animals through a drought. otherwise be the case until supplies are restored, In any event, the prospective liquidation of which may take at least a year for these annual herds that aroused concern around mid-1988 did crops. Fortunately, the price of the consumer's not materialize; and beef prices, instead of fallbreakfast cereal, to take one obvious example, ing, actually increased from May to September. will not rise proportionately as much as the As a corollary, because the liquidation was relawheat or oats that go into it because processing tively small, its end should have little influence and marketing account for so much of the value on cattle prices in 1989 (although the longer-run, added of such products. cyclical rebuilding of herds may influence them). Nor did hog producers engage in a massive and Lagged Transmission through the Livestock immediate liquidation in the wake of drought. Sector. The transmission of increases in crop However, some liquidation of breeding sows prices through the livestock sector is more com- may have occurred in late autumn, judging from plicated. Changes in farm prices for poultry, the very low levels to which hog prices fell which has a short production cycle, often con- around early November; futures markets in early front consumers quickly and directly. Indeed, December were pointing to a fairly quick refrom May to September of 1988, poultry prices bound in hog prices over the winter months. rose about 60 percent at an annual rate, reflecting the effects of both drought and strong demand. The Changing Patterns of Price Transmission. Cattle and hogs have a more extended produc- Changing patterns in consumption may be caustion cycle, and the transmission of the effects of ing consumer food prices to respond more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Drought, Agriculture, and the Economy 7 quickly to drought effects than they did in the retracing the previous runup (chart 6). Farm past. For example, poultry, which responds debt, which had been used heavily in financing quickly, has become more important in the con- the boom of the 1970s, kept rising in the early sumer's diet, at the expense of beef and pork, 1980s, but then followed asset values downward. where the price transmission tends to lag. Di- Farmers who had purchased land at high prices etary shifts toward fresh fruits and vegetables with borrowed money were squeezed in the work in the same direction. Also, the policy contraction, and many went broke or were changes that discourage liquidation of herds tend forced to sell off part of their farms in order to to damp the cycle in livestock prices that would stay in business. Lenders who had financed the otherwise be set in motion by drought. Such boom in land values suffered large loan losses, changes notwithstanding, the diversity of the and many failed. transmission mechanisms in the farm and food When the boom started in the 1970s, crop sectors still makes it difficult to know precisely failures abroad and concerns about persistent how the effect of drought on food prices will play world food shortages were thought to have been itself out in any given episode. its dominant causes. Later on, it became clear that the boom had been rooted more deeply than many had perceived in the particular macroeco- DROUGHT AND THE FINANCIAL CONDITION nomic conditions of the 1970s: strong growth in OF FARMERS demand in the industrial economies, a cheap dollar, accelerating inflation, and low or negative The 1988 drought bestowed windfall gains on real interest rates. When these macroeconomic some farmers and inflicted painful losses on forces reversed in the early 1980s, the boom others. Some of the farmers who suffered losses collapsed. will tighten their belts, draw on reserves of cash or credit, and start looking forward to another Drought and Land Prices production cycle. Others who suffered big losses and whose reserves against bad luck were slim- The frequent droughts of the past decade and a mer will face more difficult adjustments. The half appear to have played only a limited role in proportion of farmers in this latter group will shaping the broad cycle of boom and bust. The become more clear only as farmers and their 1974 drought helped to reinforce concerns about creditors sit down this winter to plan production world food shortages in the mid-1970s; the 1980 and financing strategies for the next crop year. A drought stirred similar concerns. The 1983 reasonable guess at present is that, as in past droughts, most farmers will find ways to adjust, 6. Farm real estate values1 short of insolvency or radical restructuring of 1977 = 100, ratio scale their farm businesses. Boom and Bust in Agriculture To help set the stage for a discussion of the drought's potential impact on farm finances, a brief review of the trends of the past few years is useful. The boom in agriculture that dominated the 1988 1970s came to an end early in the current decade, and an extended financial contraction followed. 1. The series plotted is the U.S. Department of Agriculture index of A central feature of this contraction was a mas- the average value per acre of farmland and buildings in the United States excluding Hawaii and Alaska. The series has been deflated by sive reversal of trends that had shaped the farm the authors using the implicit price deflator for gross national product. balance sheet in the 1970s. Prices for farm real Data for this annual survey currently are collected around February 1; for the years 1982-85, they were collected on April 1, and for 1970-75, estate—the main asset—plunged in the 1980s, on March 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1989 drought, coming at a time of large grain surpluses ators, a steady or rising price of land helps and a flagging farm economy, amplified concerns preserve a cushion against insolvency. For cashabout the financial plight of farmers. Although short operators, a rising price of land provides a the droughts may have affected land prices in reserve of collateral that helps to ensure continsome regions or localities, national trends in land ued access to credit. A continuation of the trends prices did not shift significantly in any of these in prices of land seen in recent quarters would episodes. Land prices were rising rapidly when thus be a sign that the losses to drought have the 1974 drought hit, and they kept on rising. not seriously derailed the improvement in farm Similarly, the influence of the 1980 and 1983 finance that has emerged over the past two droughts on trends in land prices appears to have years. been small. These patterns seem consistent with theories Farm Debt about the determination of land prices. In forming long-run expectations of the earnings from Like the value of land, the value of farm debt has land, farmers presumably weigh the risks of fallen steeply in the 1980s, especially in real drought. As experience accumulates, land in terms (chart 7). And as with land, the longer-run drought-prone areas may decrease in value rela- trend in farm debt appears to have been little tive to land in areas where droughts have typi- affected by past droughts. cally been infrequent and mild. However, One important indicator of the desirability of prices—and the long-run expectations upon debt—real returns on farm assets relative to the which prices depend—probably do not shift dra- real cost of borrowing (lower portion of chart matically in response to a particular drought 7)—was sharply negative in the first half of the unless its length or severity is well outside nor- 1980s but has rebounded in the past two years mal experience. and may be helping to slow the contraction of The limited evidence on trends in land prices real farm debt. In this century's previous big since mid-1988 suggests that, as in the past, the contraction—that of the interwar period—real drought may have affected prices in some regions farm debt continued to shrink even after the real but has not disturbed national trends. After sev- return on farm assets had been above the cost of eral years of steep decline, nominal land prices debt for a fairly extended period. Apparently, the for the country turned up a bit in the year ended scars of the long depression in farming during the February 1, 1988; and sharp increases were ap- 1920s and early 1930s had fostered an aversion to parent in some mid western regions, including debt among farmers. those in which previous price declines had been The reluctance to incur debt probably is less the steepest. Data for more recent quarters sug- pronounced in the current episode. Although gest that these trends have continued. In the many farmers have gone through a difficult pe- Chicago Federal Reserve District, where crop riod in the 1980s, the effect of these difficulties on losses were substantial, land prices kept rising in their attitudes toward debt may have been the third quarter of 1988, to a level about 12 smaller than that in the interwar years, when the percent above a year earlier. Prices in the Upper hard times lasted longer and government pro- Midwest, where crop damage also was severe, grams to aid farmers were much less generous. appear to have weakened after midyear but have Also, farmers today probably are better posimaintained the moderate year-to-year gains re- tioned to recognize improved financial opportuported in previous quarters, according to surveys nities and take advantage of them than their by the Federal Reserve Bank of Minneapolis. predecessors of two generations ago were. Land prices in the Kansas City District, where Hence, if real asset values remain stable or rise, the losses to drought were small, remained on a and if the relation of the return on assets to the firm uptrend in the third quarter. cost of debt remains about the same as it is now, then the odds seem fairly high that the big The trends in prices of land in coming months contraction in farm debt of the 1980s is in fact will be a key determinant of the financial health about over. of the farm economy. For highly leveraged oper- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Drought, Agriculture, and the Economy 9 7. Farm assets and debt investment of earlier years—investment that was Billions of 1987 dollars, ratio scale undertaken, with public assistance in many cases, partly in order to take advantage of price runups such as that of 1988. By selling these inventories, farmers acquire the liquidity needed for living expenses and for debt service. At some point—probably in 1989, according to the Department of Agriculture's projections—farmers will want to rebuild stocks, and cash income therefore will drop back somewhat. An important qualification regarding the effect of the drought on farm income is that some individuals may have lost all their crops and have had no inventories held over from previous years. But some of these producers also may Percentage points have purchased crop insurance to guard against Spread between total real return and real cost of debt2 the contingency of drought, and many producers will benefit from government "disaster" payments, which are being channeled to those who suffered the largest losses from the drought. THE RECENT EXPERIENCE OF FARM LENDERS 1. Data are for the farm sector excluding assets and debt related to Before the onset of the drought, farm lenders had farm households. To obtain measures of assets and debt in 1987 been recovering from the financial stresses of dollars, data from the U.S. Department of Agriculture on the nominal value of assets and debt have been adjusted for changes in general earlier years, helped by the improvement in farm purchasing power, using the implicit price deflator for personal finances and some government assistance. For consumption expenditures. 2. The real return on farm assets is the income return to farm assets both the Farm Credit System and commercial plus the capital gain (or loss) adjusted using the implicit price deflator banks, the volume of accruing farm loans had for personal consumption expenditures. SOURCE. Primary data are from the U.S. Department of Agricul- turned up a bit by mid-1988, and the volume of ture. See also Agricultural Finance Databook, Statistical Release problem loans had shrunk. Profits of both sets of E.15 (Board of Governors of the Federal Reserve System, forthcoming). The plots for 1988 are derived mainly from forecasts by the institutions had improved, and for most, the risk Department of Agriculture. of failure had diminished. Indicators of the financial performance of farm lenders since the Farm Income drought currently are sketchy; in the past, the effect of drought on lenders' performance gener- Even those producers who try to anticipate ally was limited. drought and prepare for it might temporarily need to boost their reliance on debt if drought Problem Loans losses cut unexpectedly deeply into the flow of cash income. At present, some farmers are being The improvement in the farm loan situation is squeezed, but overall, cash flow apparently is illustrated by the reductions in the proportion of being well maintained. According to the Agricul- farm loans that are delinquent, shown in the ture Department's current projections for 1988, upper part of chart 8. These problem loans are net cash income, a measure of farm earnings that those on which payment in full of principal and includes the revenue from the sales of farm interest is not expected; thus the stock of these inventories, remained at its high 1987 level. In loans increases as borrowers miss repayment effect, farmers are cashing in on the inventory deadlines or as lenders estimate that the likeli- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1989 8. Problem farm loans, major lenders than lA percent of loans outstanding. In large Percent of farm loans outstanding part, this improvement has coincided with the Delinquent farm loans as of December 311 recent stability in the nominal value of farmland and the strength in farm income, which together have limited the inflow of new loans into delinquency and have helped improve some loans enough to remove them from nonaccrual status. The 1988 drought seems unlikely to reverse the improvement in lenders' portfolios of farm loans over the past two years. As was discussed earlier, many farmers appear likely to have ample cash to meet debt payments as they sell their inventories at much higher prices. Farmers who had poor yields and small stocks of previous 4 crops have suffered a reduction in income, of course. But overall, the farm sector will have ample cash on hand to service debt, and at present, widespread increases in problem loans due to the drought appear unlikely. Profits of Farm Lenders Agricultural banks (those who lend more heavily 1. For the Farm Credit System, delinquent farm loans are defined as to farmers than do banks in general) were connonaccrual loans; the data include loans by the Bank for Coopera- sistently more profitable than nonagricultural tives. The data for 1988 are as of September 30 for the Farm Credit System and June 30 for commercial banks. banks of a similar size throughout the 1970s, but For commercial banks, the data cover farm loans, other than those with the onset of farm financial difficulties in on real estate, that are past due 90 days or more or are in nonaccrual 1982, they rapidly became less profitable (chart status. The data include estimates for the minority of banks that are not required to report delinquencies; these estimates assume that 9). However, the decline in the profitability of those banks experienced the same delinquency rate as did the banks agricultural banks apparently bottomed in 1986, that do report. 2. The data for commercial banks cover farm loans other than those when net chargeoffs peaked; subsequently, the on real estate; they are not available before 1984. Data for 1988 include rate of return for agricultural banks has rethe actual observations through midyear for commercial banks and through the first three quarters for the Farm Credit System and an bounded. The profits of farm banks overall do estimate for the balance of the year that assumes that net chargeoffs continue at the same rate for both groups of lenders. SOURCE. Data for commercial banks are from their quarterly reports of condition; data for the Farm Credit System are from Farm Credit 9. Profitability of agricultural and System, Quarterly Information Statements, selected issues. small nonagricultural banks1 Percent hood of repayment has fallen. The level of problem loans decreases as loans are charged off or as the outlook for repayment becomes brighter and 1.5 Agricultural banks the loans are returned to regular loan status. As may be seen, the share of past-due and nonaccrual loans in total farm loans peaked during 1986 Small nonagricultural banlfs and, while still fairly high, has been moving .5 steadily downward since then. In addition, the proportion of these problem loans charged off by 1 1 1 1 1 1 1 1970 1975 1980 1985 1988 banks in the first half of 1988 was less than V2 percent of loans outstanding (lower panel of 1. Profitability is defined as net income after taxes as a percentage chart 8). Chargeoffs by the Farm Credit System of total assets on December 31. Agricultural banks are defined as insured commercial banks at which the ratio of total farm loans to total during the first three quarters of 1988 were less loans is above the unweighted average of that ratio for all banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Drought, Agriculture, and the Economy 11 not seem to have been much affected by either 11. Vulnerable banks and bank failures the drought of 1974 or the two earlier droughts of Number of banks the 1980s. Vul nerable banks1 rat A e o d f e t r a e i t l u e r d n l o o f o k ag r a i t c u t l h tu e r f a a l c b to a r n s k s in a f n lu d e n th ci e n F g a t r h m e ~H Z2 | | N Ag o r n i a c g u r l i t c u u ra lt l ur b a a l nk b s a n 2 k s nV\Vl7lV\ T\ 400 Credit System is provided in chart 10. Net inter- / / i ll flm ' ' ' ' ' / W 171 R 300 est income, the difference between interest re- II t in np] 1 U\ t II U ceived from borrowers and interest paid, ex- II I II I II / '/ '/ \ '/ 200 ] ' 1 ) ' / pressed as a percent of total assets, declined Hi somewhat in the 1980s. In addition, as problem lliil ffl loans mounted in the mid-1980s, increases in the i l l lh provision for loan losses (the middle panel) Bank failures3 pushed down profit margins. More recently, the need to provide for additional loan losses has diminished for both banks and the institutions of the Farm Credit System, and profit margins have improved. However, the improved profit margin r nm Ibii 10. Factors determining income of agricultural banks and the Farm Credit System1 Percent of total assets Net interest income Agricultural banks2 I 1 I I I I I I I Net income kSSSNI^B iP 1984 1986 1988 1.Vulnerable banks are defined as those having nonperforming loans greater than total capital. 2. See chart 9, note 1. 3. Bank failures in 1988 include the failure of 41 subsidiaries of First RepublicBank Corporation, each of which is counted separately. of the Farm Credit System masks a steep decline in the system's dollar level of loans—its primary asset—since 1982. As shown in the lower two panels of chart 10, agricultural bankers generally replenished their provision for loan losses as loans were charged off and avoided drastic swings in net income. In contrast, the Farm Credit System initially provided less for loan losses, and then, in 1985 and 1986, made huge provisions that caused net income to fall precipitously. Losses have failed to materialize to the extent that was expected, and in recent quarters, negative provisions for losses on loans have boosted net income for the system. Bank Failures A number of banks experienced severe financial 1. The plots for 1988 are the observations for the first half of the year stress while dealing with the large volume of for commercial banks and for the first three quarters of the year for the Farm Credit System, both adjusted to an annual rate. problem farm loans, and many failed. The ratio 2. See chart 9, note 1, for the definition of agricultural banks. of nonperforming loans to total capital has 3. Data for the Farm Credit System include data from the Bank for proven a useful indicator of the degree of diffi- Cooperatives. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1989 culties at banks. Chart 11 shows the number of 3. Distribution of agricultural banks by ratio of probbanks with nonperforming loans greater than lem loans to total capital, June 30, 1983-88' capital and the number of bank failures. Agricul- Percent tural banks accounted for fewer and fewer of all Problem loans as a vulnerable banks as well as bank failures as the percent of total capital 1983 1984 1985 1986 1987 1988 farm situation began to improve in 1986 and problems in the oil patch began to mount. 100.0 100.0 100.0 100.0 100.0 100.0 Under 25 83.6 76.3 69.0 66.6 74.2 84.4 In addition, table 3 shows the skewed distribu- 25 to 49 12.5 16.3 19.6 19.4 16.1 10.5 50 to 74 2.3 4.4 6.1 6.8 4.8 2.8 tion of agricultural banks with a large amount of 75 to 99 .9 1.6 2.3 3.0 2.1 1.0 100 to 124 .3 .6 1.3 1.4 1.1 .2 problem loans. Most agricultural banks never 125 to 149 .1 .3 .8 .8 .5 .2 have had a large volume of problem loans rela- 150 to 174 * .2 .4 .6 .3 .3 175 to 199 .1 .1 .2 .3 .2 .2 tive to their capital. Furthermore, those having a 200 and over2 .2 .2 .4 1.0 .7 .4 large quantity of problem loans compared to total 1. Problem loans are loans that are past due 90 days or more or are capital are increasingly in the minority. Thus, in nonaccrual status. most agricultural banks probably were reason- 2. Includes banks with negative capital. *Less than 0.05 percent. ably well positioned in mid-1988 to handle potential increases in problem loans due to the 1988 drought. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

13 Industrial Production Released for publication November 15 plies. Production of materials, after having posted a strong gain in July, has changed little Industrial production increased 0.4 percent in since then. At 139.2 percent of the 1977 annual October after having risen 0.2 percent in Septem- average, the total index in October was 5.1 ber and 0.3 percent in August. The October gain percent higher than it was a year earlier. mainly reflected further increases in business In market groups, production of consumer equipment and automotive products, as well as goods increased 0.6 percent in October, as most an increase in the output of construction sup- major components posted gains. Auto assemblies Ratio scale, 1977= 100 _ TOTAL INDEX 140 - Products 120 / Materials 100 8800 1 1 1 1 : 1 _ MANUFACTURING 140 _ MATERIALS Nondurable Durable 120 100 Energy 80 1 1 1 1 1 i - CONSUMER GOODS - - Nondurable „ Durable / / / % 1 1 1 1 ^ 1 140 MOTOR VEHICLES AND PARTS FINAL PRODUCTS Defense and space 200 120 180 100 160 140 80 120 Consumer goods 100 60 80 1982 1984 1986 1988 1982 1984 1986 1988 All series are seasonally adjusted. Latest figures: October. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 1989 1977 = 100 Percentage change from preceding month Percentage cchhaannggee,, Group 1988 1988 OOcctt.. 11998877 ttoo OOcctt.. 11998888 Sept. Oct. June July Aug. Sept. Oct. Major market groups Total industrial production 138.7 139.2 .3 1.1 .3 .2 .4 5.1 Products, total 147.4 148.4 .2 .8 .4 .2 .6 5.3 Final products 146.0 146.8 .3 .7 .4 .2 .6 5.3 Consumer goods 134.7 135.5 .2 .9 .5 -.2 .6 5.0 Durable 125.6 127.0 -.3 .0 .1 .1 1.2 2.2 Nondurable 138.0 138.6 .4 1.2 .7 -.3 .4 6.0 Business equipment.. 161.4 162.7 .8 .8 .5 .8 .8 9.4 Defense and space 184.7 184.6 -.5 .2 -.1 .0 .0 -3.0 Intermediate products.. 152.5 153.9 -.3 1.0 .4 .2 .9 5.3 Construction supplies 138.6 140.4 -.9 .6 -.2 .4 1.3 5.3 Materials 126.8 126.8 .4 1.6 .1 .2 .0 4.6 Major industry groups Manufacturing 144.5 145.2 .2 1.1 .2 .4 .5 5.7 Durable 144.0 144.8 .1 .9 .1 .6 .6 5.9 Nondurable 145.3 145.7 .4 1.4 .2 .2 .3 5.5 Mining 103.8 102.8 .3 1.3 -.3 -.2 -.9 -.8 Utilities 113.3 113.7 1.5 1.0 2.9 -3.8 .4 1.4 NOTE. Indexes are seasonally adjusted. rose to an annual rate of 7.6 million units from turing and power equipment has been expanding the rate of 7.4 million units in September; output strongly since the spring. Production of construcof light trucks for consumer use also increased. tion supplies advanced 1.3 percent in October as Production of home goods, which includes appli- disruptions over the summer, owing mainly to ances, rose 0.8 percent, retracing some of the strikes, have ended. decline in September; over the past year, output Production of total materials was unchanged in of home goods, on balance, has been sluggish. October, as small gains in durables and nondur- All major components of business equipment, ables were offset by a decline in energy materiexcept commercial equipment, rose sharply in als, mainly extraction of crude oil. Among dura- October ; within this grouping output of manufac- ble materials, output of parts for consumer durables and for equipment rose, but basic metals, notably steel, fell. Within nondurable mate- Total industrial production—Revisions rials, production of chemicals increased, but Estimates as shown last month and current estimates textiles and paper were little changed. Percentage change In industry groups, manufacturing output rose Index (1977=100) from previous months 0.5 percent in October. Durable manufacturing MMoonntthh was boosted by sharp advances in the production Previous Current Previous Current of motor vehicles and lumber; among nondurables, gains were scattered. Mining output, ow- July 138.1 138.0 1.2 1.1 August 138.3 138.4 .2 .3 ing mainly to weakness in the oil and gas sector, Sept 138.3 138.7 .0 .2 Oct 139.2 ... .4 declined 0.9 percent, but production at utilities rose 0.4 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 Statement to the Deficit Commission Statement by Alan Greenspan, Chairman, Board early years of the current expansion. This slack of Governors of the Federal Reserve System, meant that the economy could accommodate before the National Economic Commission, growing demands from both the private and November 16, 1988. public sectors. In addition, to the extent that these demands could not be accommodated from It is a pleasure to appear before this distinguished U.S. resources, we went abroad and imported commission to discuss the federal government them. This can be seen in our large trade and deficit. My thesis today is that federal govern- current account deficits. By now, however, the ment deficits do matter. It may appear misplaced slack in the U.S. economy has contracted subto focus on this issue before a commission whose stantially. And, it has become increasingly clear very existence presupposes the need to reduce that reliance on foreign sources of funds is not the deficit. But there is a significant counterview, possible or desirable over extended periods. As fortunately, to date, a minority opinion, that in these sources are reduced along with our trade fact deficits do not matter much, or in any event deficit, other sources must be found, or demands that there is no urgency in coming to grips with for saving curtailed. The choices are limited; as them. will become clear, the best option for the Amer- The bulk of my opening remarks will concen- ican people is a further reduction in the federal trate on the long-term corrosive impact of the budget deficit, and the need for such reduction is deficit. From this perspective, the case for bring- becoming more pressing. ing down the deficit is compelling. But first, I Because of significant efforts by the adminiswant to stress that the long run is rapidly turning tration and the Congress, coupled with strong into the short run. If we do not act promptly, the economic growth, the deficit has shrunk from 5 imbalances in the economy are such that the or 6 percent of gross national product a few years effects of the deficit will be increasingly felt and earlier to about 3 percent of GNP today. Such a with some immediacy. deficit, nevertheless, is still very large by histor- It is beguiling to contemplate the strong econ- ical standards. Since World War II, the actual omy of recent years in the context of very large budget deficit has exceeded 3 percent of GNP deficits and to conclude that the concerns about only in the 1975 recession period and in the the adverse effects of the deficit on the economy recent deficit experience beginning in 1982. On a have been misplaced. But this argument is fanci- cyclically adjusted or structural basis, the deficit ful. The deficit already has begun to eat away at has exceeded 3 percent of potential GNP only in the foundations of our economic strength. And the period since 1983. the need to deal with it is becoming ever more Government deficits, however, place pressure urgent. To the extent that some of the negative on resources and credit markets only if they are effects of deficits have not as yet been felt, they not offset by saving elsewhere in the economy. If have been merely postponed, not avoided. More- the pool of private saving is small, federal deficits over, the scope for further such avoidance is and private investment will be in keen competishrinking. tion for funds, and private investment will lose. To some degree, the effects of the federal The U.S. deficits of recent years are threatenbudget deficits over the past several years have ing precisely because they have been occurring been muted by two circumstances, both of which in the context of private saving that is low by are currently changing rapidly. One was the both historical and international standards. Hisrather large degree of slack in the economy in the torically, net personal plus business saving in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 1989 United States in the 1980s is about 3 percentage dated private activity will almost always be fipoints lower relative to GNP than its average in nanced irrespective of the interest rate that exthe preceding three decades. Internationally, ists. Borrowing with government-guaranteed government deficits have been quite common debt may be only partly interest sensitive, but the among the major industrial countries in the guarantees have the effect of preempting re- 1980s, but private saving rates in most of these sources from those without access to riskless countries have exceeded the deficits by very credit. Government spending fully financed by comfortable margins. In Japan, for example, less taxation does, of course, preempt real resources than 20 percent of its private saving has been from the private sector, but the process works absorbed by government deficits, even though through channels other than real interest rates. the Japanese general government has been bor- Purely private activities, on the other hand, rowing almost 3 percent of its gross domestic are, to a greater or lesser extent, responsive to product in the 1980s. In contrast, more than half interest rates. The demand for mortgages, for of private U.S. saving in the 1980s has been example, falls off dramatically as mortgage interabsorbed by the combined deficits of the federal est rates rise. Inventory demand is, clearly, a and state and local sectors. function of short-term interest rates, and the Under these circumstances, such large and level of interest rates, as they are reflected in the persistent deficits are slowly but inexorably dam- cost of capital, is a key element in the decision on aging the economy. The damage occurs because whether to expand or modernize productive cadeficits tend to pull resources away from net pacity. Hence, to the extent that there are more private investment. And a reduction in net in- resources demanded in an economy than are vestment has reduced the rate of growth of the available to be financed, interest rates will rise nation's capital stock. This, in turn, has meant until sufficient excess demand is finally crowded less capital per worker than would otherwise out. The crowded-out demand cannot, of course, have been the case, and this will surely engender be that of the federal government, directly or a shortfall in labor productivity growth and, with indirectly, since government demand does not it, a shortfall in growth of the standard of living. respond to rising interest rates. Rather, real The process by which government deficits interest rates will rise to the point that private divert resources from net private investment is borrowing is reduced sufficiently to allow the part of the broader process of redirecting the entire requirements of the federal on- and offallocation of real resources that inevitably ac- budget deficit, and all its collateral guarantees companies the activities of the federal govern- and mandated activities, to be met. ment. The federal government can preempt re- In real terms, there is no alternative to a sources from the private sector or direct their diversion of real resources from the private to the usage by a number of different means, the most public sector. In the short run, interest rates can important of which are the following: (1) deficit be held down if the Federal Reserve accommospending, on- or off-budget; (2) tax-financed dates the excess demand for funds through a spending; (3) regulation that mandates private more expansionary monetary policy. But this activities such as pollution control or safety will only engender an acceleration of inflation equipment, which are financed by industry and, ultimately, will have little, if any, effect on through the issuance of debt instruments; and (4) the allocation of real resources between the government guarantees of private borrowing. private and public sectors. What deficit spending and regulatory measures The Treasury has been a large and growing have in common is that to the extent to which customer in financial markets in recent years. It resources are preempted by government actions, has acquired, on average, roughly 25 percent of directly or indirectly, they are not sensitive to the the total funds borrowed in domestic credit marrate of interest. The federal government, for kets over the last four years, up from less than 15 example, will finance its budget deficit in full, percent in the 1970s. For the Treasury to raise its irrespective of the interest rate it must pay to share of total credit flows in this fashion, it must raise the funds. Similarly, a government-man- push other borrowers aside. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to the Deficit Commission 17 The more interest-responsive are the total de- for replacement of the existing capital stock as mands of these other, private borrowers, the less well as for the net investment necessary to raise will the equilibrium interest rate be pushed up by tomorrow's living standards. Thus, the current the increase in Treasury borrowing. That is, the relatively high ratio of gross investment to GNP greater the decline in the quantity of funds de- in this country is a deceptive indicator of the manded, and the associated spending to be fi- additions to our capital stock. nanced, for a given rise in interest rates, the In fact, we have already experienced a disturblower will be the rate. In contrast, if private ing decline in the level of net investment as a borrowing and spending are resistant, interest share of GNP. On a national income and product rates will have to rise more before enough private accounts basis, net investment has fallen to 4.7 spending gives way. In either case, private in- percent of GNP in the 1980s from an average vestment is crowded out by higher real interest level of 6.7 percent in the 1970s and even higher rates. in the 1960s. Moreover, it is low not only by our Even if private investment were not as inter- own historical standards but by international est-elastic as it appears to be, crowding out of standards as well. International comparisons of private spending by the budget deficit would net investment should be viewed with some occur dollar for dollar if the total supply of saving caution because of differences in the measurewere fixed. To the extent that the supply of ment of depreciation and in other technical desaving is induced to increase, both the equilib- tails. Nevertheless, the existing data do indicate rium rise in interest rates and the amount of that total net private and public investment as a crowding out will be less. However, even if more share of gross domestic product over the period saving can be induced in the short run, it will be between 1980 and 1986 was lower in the United permanently lowered in the long run to the extent States than in any of the other industrial counthat real income growth is curtailed by reduced tries except the United Kingdom. capital formation. It is important to recognize, as I indicated But aggregate investment is only part of the earlier, that the negative effects of federal deficits process through which the structure of produc- on growth in the capital stock may be attenuated tion is affected by high real interest rates. Higher for a while by several forces in the private sector. real interest rates also induce both consumers One is a significant period of output growth in and businesses to concentrate their purchases excess of potential GNP growth—such as ocdisproportionately on immediately consumable curred over much of the past six years—which goods and, of course, on services. When real undoubtedly boosts sales and profit expectations interest rates are high, purchasers and producers and, hence, business investment. Such rates of of long-lived assets such as real estate and capital output growth, of course, cannot persist, making equipment pull back. They cannot afford the this factor inherently temporary in nature. debt-carrying costs at high interest rates or, if Another factor tending to limit the decline in they are to finance the assets with available cash, investment spending would be any tendency for they cannot afford the forgone interest income saving to respond positively to the higher interest resulting from this expenditure of the cash. Un- rates that deficits would bring. The supply of der such conditions, one would expect the GNP domestic private saving has some interest elasto be disproportionately composed of short-lived ticity, as people put off spending when borrowing goods—food, clothing, services, and so on. costs are high and returns from their financial Indeed, statistical analysis demonstrates such assets are favorable. But most analysts find that a relationship—that is, a recent decline in the this elasticity is not sufficiently large to matter average service life of all consumption and in- much. vestment goods and a systematic tendency for Finally, net inflows of foreign saving can be, as this average to move inversely with real rates of recent years have demonstrated, an important interest. Parenthetically, the resulting shift addition to saving. In the 1980s, foreign saving toward shorter-lived investment goods means has kept the decline in the ratio of gross investthat more gross investment is required to provide ment to GNP, on average, to only moderate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 1989 dimensions (slightly more than one-half percent- Looking ahead, the continuation of foreign age point) compared with the 1970s, while the saving at current levels is questionable. Evidence federal deficit rose about 2Vi percentage points for the United States and for most other major relative to GNP. Net inflows of foreign saving industrial nations over the last 100 years indihave amounted, on average, to almost 2 percent cates that such sizable foreign net capital inflows of GNP, an unprecedented level. have not persisted and, hence, may not be a Opinions differ about the relative importance reliable substitute for domestic saving on a longof high U.S. interest rates, changes in the af- term basis. In other words, domestic investment ter-tax return to investment in the United States, tends to be supported by domestic saving alone and changes in perception of the relative risks of in the long run. investment in various countries and currencies in Let me conclude by reiterating my central bringing about the foreign capital inflow. What- message. The presumption that the deficit is ever its source, had we not experienced this benign is clearly false. It is partly responsible for addition to our saving, our interest rates would the decline in the net investment ratio in the have been even higher and domestic investment 1980s to a suboptimal level. Allowing it to go on lower. Indeed, since 1985, when the appetite of courts a dangerous corrosion of our economy. private investors for dollar assets seems to have Fortunately, we have it in our power to reverse waned, the downtrend in real long-term rates has this process, thereby avoiding potentially signifbecome erratic, tending to stall with the level still icant reductions in our standard of living. • historically high. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

19 Announcements CHANGE IN REPORTING REQUIREMENTS quire operations subsidiaries through their state UNDER THE HMD A banks in the future. The Board is also requesting comment on a The Federal Reserve Board issued on Novem- proposal to permit bank holding companies that ber 21, 1988, a notice of a change in reporting have established operations subsidiaries in relirequirements of the Home Mortgage Disclosure ance on the Board's current rules to retain all or Act (HMDA) for mortgage banking subsidiaries most of these subsidiaries without further apof bank and savings and loan holding companies proval. and certain savings and loan service corpora- The Federal Reserve Board also issued for tions. public comment on December 1, 1988, proposed Under the statutory amendments that brought revisions to the official staff commentary for two these institutions within the coverage of HMDA, of its consumer credit protection regulations: they were required to report mortgage loan data Regulation E (Electronic Fund Transfers) and for all of calendar year 1988. The Congress Regulation Z (Truth in Lending). Comments recently changed the effective date to require must be received by February 3, 1989. these institutions, in their reports, to include data only for loans originated or purchased on or after August 19, 1988. These reports will be due on CHANGE IN BOARD STAFF March 31, 1989. Eleanor J. Stockwell, Associate Director, Division of Research and Statistics, retired, effective PROPOSED ACTIONS December 16, 1988. The Federal Reserve Board issued for public comment on November 30, 1988, a proposal to SYSTEM MEMBERSHIP: ADMISSION OF rescind the Board's existing rule in Regulation Y STATE BANKS (Bank Holding Companies and Change in Bank Control) permitting bank holding companies, The following state banks were admitted to memthrough their state banks, to establish or acquire bership in the Federal Reserve System during the nonbank companies engaged in activities that period November 1 through November 30, 1988: may be conducted by the parent bank (so-called operations subsidiaries). The effect of this action, Illinois if adopted, would be to require holding compa- Chicago Affiliated Bank Chicago nies to obtain approval under section 4(c)(8) of Pennsylvania the Bank Holding Company Act for their subsid- Philadelphia First Executive Bank iary state banks to acquire or retain control of York First Capitol Bank nonbank operations subsidiaries. Virginia The Board requests comment on a proposal to Roanoke First Security Bank establish an expedited notice procedure for bank Texas holding companies seeking to establish or ac- Kerrville Bank of Kerrville Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON SEPTEMBER 20,1988 Recent information on business capital spending suggested some moderation from the very Domestic Policy Directive rapid growth in earlier months of the year. Real outlays for equipment continued to expand in The information reviewed at this meeting sug- July but at a pace well below that of the first half gested that the expansion of economic activity of the year as shipments of office and computing might be moderating from the vigorous pace equipment fell. Nonresidential construction acexperienced earlier in the year. Information on tivity apparently edged higher in July despite output and spending in the third quarter was still further contraction in oil drilling and in spending fragmentary, but recent statistics, including data on industrial and commercial structures other on labor market activity, pointed on balance to than office buildings. Inventory investment in the some slowing in the rate of economic growth. manufacturing and wholesale sectors in July ev- Measures of price and wage inflation showed idently remained at about the moderate secondlittle change from recent trends, apart from the quarter pace. Housing starts rose in July, as continuing upward impetus to food prices stem- multifamily construction rebounded from a reming from the drought. duced June level, but single-family starts re- Total nonfarm payroll employment rose more mained close to the average pace of the first half slowly in July and August, but gains in overall of the year. Sales of new and existing homes employment remained sizable. After four months retreated from their June pace, which had been of strong increases, manufacturing employment the highest in more than a year. fell slightly although some industries with strong The nominal U.S. merchandise trade deficit domestic and export sales recorded further in- fell appreciably further in July from a considercreases. The civilian unemployment rate edged ably reduced second-quarter rate and was the up in July and rose somewhat further to 5.6 lowest monthly deficit since March 1985. Virtupercent in August, returning to its average level ally all of the improvement in July was due to a of the first half of the year. reduction in imports. The total value of exports Industrial production advanced somewhat fur- was little changed from the June level as a sharp ther in August after a sharp increase in July. reduction in exports of automotive products Production gains were recorded for most catego- about offset small increases in most other major ries although they generally were smaller than categories. Economic activity in major foreign those in July. Total industrial capacity utilization industrial countries slackened in the second was little changed in August. Utilization rates quarter, but expansion appeared to have reremained at relatively high levels in primary sumed in the current quarter. processing industries but slipped in manufactur- Producer prices of finished goods, propelled by ing as a whole after four months of increases. further substantial increases in refinery prices for Total retail sales were little changed on bal- gasoline, registered another large advance in ance in July and August. Outlays for durable August. At the level of crude materials, producer goods declined in both months, partly because of food prices were up sharply for the fourth some slowing in unit sales of new automobiles. straight month, reflecting the continuing effects Sales of nondurable goods increased at a sluggish of the drought. Consumer prices, available for pace. July, advanced at about the second-quarter pace. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 21 Consumer food prices surged again; and energy flecting a contraction in total reserves, growth prices rose further, mainly because of higher of the monetary base slowed markedly in gasoline prices. Excluding food and energy August. items, consumer prices increased at about the The staff projection prepared for this meeting average pace of the preceding 12 months. incorporated somewhat slower growth of eco- In the foreign exchange markets, the trade- nomic activity in the current quarter than had weighted value of the dollar changed little on been projected earlier, largely reflecting the rebalance over the period since the Committee cent softening in the data on employment. The meeting on August 16. Following that meeting, rate of expansion through the end of 1989 was the dollar remained under upward pressure until expected to remain on balance below the pace in late in the month when increases in European recent quarters, with the drought likely to conofficial lending rates arrested its climb. Following tribute to an uneven quarterly pattern of growth. the softer U.S. employment report for August, To the extent that monetary policy did not acthe dollar moved lower in early September, but it commodate any tendency for growth in final subsequently firmed in response to the publica- demand to be sustained at a pace that threatened tion of the July merchandise trade figures. more inflation, pressures would be generated in At its meeting in mid-August, the Committee financial markets that would restrain domestic adopted a directive calling for no change in the spending. The staff continued to project reladegree of pressure on reserve positions. These tively limited growth of consumer spending, conreserve conditions were expected to be consis- siderably reduced expansion of business fixed tent with growth of M2 and M3 at annual rates of investment, and sluggish housing activity. The about 2>Vi and 5Vi percent respectively over the foreign sector was still expected to make a major period from June through September. The mem- contribution to domestic economic growth, even bers agreed that somewhat greater reserve re- though progress in reducing the trade deficit was straint would, or slightly lesser reserve restraint thought likely to be slower than in recent quarmight, be acceptable, depending on indications ters. The staff also anticipated some continuing of inflationary pressures, the strength of the cost pressures over the next several quarters, business expansion, the behavior of the mone- reflecting the effects of rising import prices and tary aggregates, and developments in foreign especially of reduced margins of unutilized labor exchange and domestic financial markets. and other production resources. Reserve conditions remained essentially un- In the Committee's discussion of the economic changed over the period since the August situation and outlook, members noted that the meeting. Adjustment plus seasonal borrowing recent indications of some moderation in the rate averaged just below $600 million for the two of economic growth tended to reinforce their reserve maintenance periods completed since expectations of a reduced rate of economic exthe meeting, and federal funds primarily traded pansion through next year. The members welnear the SVs percent level prevailing at the time comed the signs of somewhat slower economic of the meeting. In light of some indications of growth, given the risks of higher inflation. A more moderate economic expansion, most other number were concerned that the apparent slowmarket interest rates declined LA to 3/s percentage ing might prove to be only a temporary pause in point over the intermeeting period. Broad in- a generally strong expansion or to be inadequate dexes of stock prices were up 1 to 3 percent. to avert an intensification of inflationary pres- Growth of the broader monetary aggregates sures without further monetary restraint. Others, slowed again in August. The slower expansion of while noting the still tentative nature of the M2 was concentrated in its liquid deposit com- incoming data, interpreted recent developments ponents and probably continued to reflect the in financial markets as well as the real economy rise since early spring of market interest rates as suggesting a greater likelihood that policy had and related opportunity costs of holding such tightened sufficiently to put the economy on a deposits. Growth of Ml fell sharply in August, as desirable course toward moderate growth that total transaction deposits declined slightly. Re- would prove compatible over time with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1989 achievement of the Committee's anti-inflationary tionary demand pressures. Some favorable objectives. developments that had tended to dampen infla- In the Committee's discussion of factors bear- tion, such as declining oil prices and a rising ing on the economic outlook, a number of mem- dollar, might well be reversed. More fundamenbers emphasized that, on the whole, indicators of tally, given current utilization rates of labor and economic activity continued to suggest apprecia- other production resources, the economy was ble momentum in the expansion. Recent growth probably near the point where expansion at a rate of payroll employment, while below the average somewhat above the economy's trend growth pace of the first half of the year, was still sub- potential could result in greater pressures on stantial. Capital spending exhibited few signs of wages and prices. Other members saw less risk weakening following a period of rapid expansion, of more inflation, particularly in the context of and sizable profits augured for continuing what they viewed as the moderating growth of growth. Likewise, new orders, notably for ex- the economy and the appreciable tightening of ports, were holding up well, and some greater monetary policy over the past several months. inventory investment was seen as a reasonable Consistent with this view, some noted that inflaprospect, given current low inventory-to-sales tionary expectations appeared to have eased as ratios. A number of members also referred to evidenced, for example, by the performance of continuing evidence of a high level of business long-term debt markets and the behavior of the activity in many parts of the country. Indeed, in dollar in foreign exchange markets. Moreover, some areas and industries, growth was being industrial commodity prices had been relatively constrained by a limited availability of labor and stable for an extended period. Reports from other production resources. At the same time, contacts around the nation did not suggest much members noted that economic performance re- change recently in local price and wage developmained uneven across the country, depending on ments. Capacity constraints and labor shortages the mix of local industries, and a few signs of in some industries and areas continued to be a moderation could be observed even in areas that source of inflationary pressures, but there were were characterized by strong local economies. few reports of outsized increases in prices or Retail sales were lackluster in a number of areas, wages. Indeed, some members noted that prices and the drought was having a mixed impact on had tended to level out or to rise more slowly in agriculture. The drought's adverse effects in a number of industries and indications of faster some parts of the country contrasted with in- increases in wages were limited. come gains in other areas where producers expe- At its meeting in late June the Committee riencing more normal crop yields were benefiting reviewed the basic policy objectives that it had from higher prices. On balance, local conditions set for growth of the monetary and debt aggreappeared consistent with expectations of some- gates in 1988, and it established tentative objecwhat slower growth in domestic demand. tives for expansion of those aggregates in 1989. Members continued to anticipate further im- For the period from the fourth quarter of 1987 to provement in the nation's trade balance over the the fourth quarter of 1988, the Committee reafnext several quarters. That view was bolstered firmed the ranges of 4 to 8 percent set in Februby local reports of strength in export demands for ary for growth of both M2 and M3. The monitora wide variety of products and indications of ing range for expansion of total domestic gains in domestic market shares by firms in the nonfinancial debt in 1988 was left unchanged United States. The prospective improvement in from its February specification of 7 to 11 percent. net exports was not likely to be as strong as in On a cumulative basis through August, M2 had recent quarters, however, reflecting the lagged grown at an annual rate slightly above, and M3 at effects of the rise in the exchange value of the a rate more noticeably above, the midpoints of dollar over the course of recent months. their annual ranges. Expansion of total domestic nonfinancial debt appeared to have moderated to With regard to the outlook for inflation, mema pace marginally below the midpoint of its bers generally emphasized that the risks rerange. For 1989 the Committee agreed on tentamained on the side of an intensification of infla- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 23 tive reductions to ranges of 3 to 7 percent for M2 firming than an adjustment toward easing in the and 3V2 to lxh percent for M3. The monitoring weeks ahead. Some commented that near-term range for growth of total domestic nonfinancial developments were not likely to call for a policy debt was lowered to 6Vi to IOV2 percent for 1989. change in this period, while others saw a greater It was understood that all the ranges for next likelihood that intermeeting developments would year were provisional and that they would be point to the desirability of some firming. The reviewed in February 1989 in the light of inter- potential need for some easing was viewed as vening developments. With respect to Ml, the remote. Committee reaffirmed in June its earlier decision At the conclusion of the Committee's discusnot to set a specific target for growth in 1988 and sion, all of the members approved a directive that it also decided not to establish a tentative range called for maintaining the current degree of presfor 1989. sure on reserve positions. The members decided In the Committee's discussion of policy imple- that somewhat greater reserve restraint would be mentation for the weeks immediately ahead, all acceptable, or slightly lesser reserve restraint of the members agreed on a proposal calling for might be acceptable, over the intermeeting pean unchanged policy stance pending an evalua- riod, depending on indications of inflationary tion of further economic developments. Those pressures, the strength of the business expanwho perceived the risks in the economic outlook sion, the behavior of the monetary aggregates, as still decidedly on the side of continued strong and developments in foreign exchange and dodemand and greater inflationary pressures saw mestic financial markets. The reserve conditions enough uncertainties in the current economic contemplated by the Committee were expected situation to warrant a pause in the policy firming to be consistent with growth of M2 and M3 at process. Others were less persuaded that infla- annual rates of about 3 percent and 5 percent tionary pressures would intensify, especially respectively over the four-month period from given the degree of policy restraint that already August to December. The members agreed that had been implemented over the past several the intermeeting range for the federal funds rate, months. It was noted that additional firming at which provides one mechanism for initiating conthis time could have undesirable repercussions sultation of the Committee when its boundaries on the dollar in foreign exchange markets and on are persistently exceeded, should be left unthe financial condition of many already troubled changed at 6 to 10 percent. depository institutions. Some members ex- At the conclusion of the meeting, the following pressed concern that a marked weakening in the domestic policy directive was issued to the Fedeconomy, which would become a greater risk if eral Reserve Bank of New York: policy were tightened further, would disrupt the urgent task of reducing the federal budget The information reviewed at this meeting suggests deficit. that the expansion in economic activity may be mod- In their consideration of a desirable policy for erating from the vigorous pace earlier in the year. Total nonfarm payroll employment grew more slowly the near term, the members took account of a in July and August, though the increases in the two staff analysis, which suggested that monetary months were still sizable. The civilian unemployment expansion was likely to remain relatively damped rate rose to 5.6 percent in August. Industrial producin coming months. This outlook assumed a con- tion advanced slightly further in August after a sharp tinuing lagged adjustment of offering rates on increase in July. Retail sales were flat in July and August. Recent indicators of business capital spending retail deposits to earlier increases in market suggest some moderation from the especially rapid interest rates. growth in earlier months of the year. Preliminary data With regard to possible adjustments in the for the nominal U.S. merchandise trade deficit in July degree of reserve pressure during the intermeet- showed some further reduction from the improved second-quarter rate. The latest information on prices ing period, all of the members indicated that the suggests little if any change from recent trends. balance of risks in the economy was such that Most interest rates have declined somewhat since they favored or could accept a directive that the Committee meeting on August 16. Over the interwould more readily accommodate a move toward meeting period, the trade-weighted foreign exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1989 value of the dollar in terms of the other G-10 curren- With respect to Ml, the Committee reaffirmed its cies was about unchanged on balance. decision in February not to establish a specific target Expansion of M2 and M3 moderated further in for 1988 and also decided not to set a tentative range August. For the year through August, M2 has grown at for 1989. The behavior of this aggregate will continue a rate slightly above, and M3 at a rate more noticeably to be evaluated in the light of movements in its above, the midpoints of the ranges established by the velocity, developments in the economy and financial Committee for 1988. Ml was unchanged in August markets, and the nature of emerging price pressures. after registering relatively strong growth in June and In the implementation of policy for the immediate July. Expansion of total domestic nonfinancial debt for future, the Committee seeks to maintain the existing the year thus far appears to be at a pace somewhat degree of pressure on reserve positions. Taking acbelow that in 1987. count of indications of inflationary pressures, the The Federal Open Market Committee seeks mone- strength of the business expansion, the behavior of the tary and financial conditions that will foster price monetary aggregates, and developments in foreign stability over time, promote growth in output on a exchange and domestic financial markets, somewhat sustainable basis, and contribute to an improved pat- greater reserve restraint would, or slightly lesser retern of international transactions. In furtherance of serve restraint might, be acceptable in the intermeetthese objectives, the Committee at its meeting in late ing period. The contemplated reserve conditions are June reaffirmed the ranges it had established in Feb- expected to be consistent with growth of M2 and M3 ruary for growth of 4 to 8 percent for both M2 and M3, over the period from August through December at measured from the fourth quarter of 1987 to the fourth annual rates of about 3 and 5 percent, respectively. quarter of 1988. The monitoring range for growth of The Chairman may call for Committee consultation if total domestic nonfinancial debt was also maintained it appears to the Manager for Domestic Operations at 7 to 11 percent for the year. that reserve conditions during the period before the For 1989, the Committee agreed on tentative ranges next meeting are likely to be associated with a federal for monetary growth, measured from the fourth quar- funds rate persistently outside a range of 6 to 10 ter of 1988 to the fourth quarter of 1989, of 3 to 7 percent. percent for M2 and 3l/z to IVz percent for M3. The Committee set the associated monitoring range for Votes for this action: Messrs. Greenspan, Corrigrowth of total domestic nonfinancial debt at 6V2 to gan, Angell, Black, Forrestal, Heller, Hoskins, IOV2 percent. It was understood that all these ranges Johnson, Kelley, LaWare, Parry, and Ms. Seger. were provisional and that they would be reviewed in Votes against this action: None. early 1989 in the light of intervening developments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

25 Legal Developments PREEMPTION DETERMINATION UNDER regarding the New York law under authority delegated REGULATION B to the Director of the Division of Consumer and Community Affairs, as set forth in the Board's Rules The Board of Governors has determined that a provi- Regarding Delegation of Authority (12 C.F.R. Part sion in the law of New York is inconsistent with the 265). Equal Credit Opportunity Act and Regulation B and (2) Analysis of ECOA, Regulation B, and New York therefore is preempted. law. The ECOA and Regulation B prohibit discrimina- Effective November 11, 1988, the Board has deter- tion in any credit transaction on the basis of race, mined that the provision in the state law of New York color, national origin, religion, sex, marital status, age, specified below is preempted by 12 C.F.R. Part 202 as receipt of income from public assistance programs, or follows: the good-faith exercise of any rights under the Con- (1) General. Section 705(f) of the Equal Credit Oppor- sumer Credit Protection Act. However, section 202.8 tunity Act authorizes the Federal Reserve Board to of the regulation (which implements section 701(c) of determine whether an inconsistency exists between a the ECOA) permits a creditor to extend special-purprovision of the act and a state law relating to credit pose credit and to consider one or more common discrimination. If a state law is inconsistent and pro- characteristics of program participants (for example, vides no greater protection for credit applicants than race or national origin) when extending credit under does the federal law, the state law is preempted to the these programs. extent of the inconsistency, and creditors in that state Under section 202.8, creditors are allowed to offer may not follow the inconsistent state requirement. credit assistance programs that are authorized by The Board received a request, made on behalf of an federal or state law, or that are established by a organization headquartered in the Republic of China, not-for-profit organization, for the benefit of an ecofor a preemption determination concerning New York nomically disadvantaged class of persons. It also alstate law. The organization plans to operate a fund that lows a not-for-profit organization to offer credit assistwill guarantee loans made to overseas Chinese resid- ance programs for the benefit of its members. In ing in the United States when they borrow money from addition, for-profit organizations may provide specialthe U.S. branches of Chinese banks or from U.S. purpose credit programs to meet special social needs if banks that have Chinese capital. The organization the programs are administered pursuant to a written proposes to establish this guarantee program in keep- plan that identifies the class of persons the particular ing with provisions of the Equal Credit Opportunity program is designed to benefit. As mentioned earlier, Act that permit a creditor offering a special-purpose participants of these programs may be required to credit program (as defined by the Board's Regulation share one or more common characteristics, such as B, which implements the act) to take into account a race or national origin. If participants are required to factor —such as national origin —whose consideration possess a common characteristic, the creditor may is normally barred by the act and regulation. request and consider information regarding that par- In response to this request the Board examined New ticular characteristic. York law, Article 15, section 296-a to determine Under section 705 of the ECOA and Section 202.11 whether its provisions are inconsistent with the ECOA of Regulation B, state law provisions that are inconand the Board's Regulation B. On July 18, 1988, the sistent with the requirements of the act and regulation Board published a preliminary determination (53 Fed- are preempted. Section 202.1 l(b)(l)(v) of Regulation B eral Register 26,987). In that notice, the Board pro- also provides that a state law is inconsistent with the posed to preempt the New York law to the extent that requirements of the federal law to the extent that the it bars a creditor from offering a special-purpose credit state law prohibits inquiries necessary to establish or program. One comment on the proposed determina- administer a special-purpose credit program as defined tion was received during the comment period, which by Section 202.8. closed on September 12, 1988. The Board has made a comparison of New York The Board is now publishing a final determination statute sections 296-a(l)(b) and (c) to Regulation B's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1989 Section 202.8. The establishment of a special-purpose ing with the reserve computation period beginning on credit program, though permissible under the ECOA Tuesday, December 27, 1988, and with the correand Section 202.8, is prohibited under New York law, sponding reserve maintenance periods beginning which bars—without exception—discrimination on the Thursday, December 29, 1988, for net transaction basis of the race, creed, color, national origin, sex, or accounts, and on Thursday, January 26, 1989, for marital status of an applicant or of a class of appli- other reservable liabilities. For institutions that report cants. Furthermore, creditors are expressly prohibited quarterly, the low reserve tranche adjustment and the under New York law from inquiring about these reservable liabilities exemption adjustment will be characteristics. effective with the computation period beginning on (3) Determination and Effect of Preemption. Based on Tuesday, December 20, 1988, and with the reserve its analysis, the Board has determined that the New maintenance period beginning Thursday, January 19, York law on credit discrimination is inconsistent with 1989. For all depository institutions, the increase in federal law, and that it is preempted by the ECOA and the deposit cutoff level will be used to screen institu- Regulation B to the extent of the inconsistency. Thus, tions in the second quarter of 1989 to determine the state of New York is barred from prohibiting reporting frequency beginning September 1989. special-purpose credit programs and related inquiries Pursuant to the Board's authority under section 19 that are permissible under federal law. of the Federal Reserve Act, 12 U.S.C. § 461 et seq., The Board makes no determination, however, as to the Board is amending 12 C.F.R Part 204 as follows: whether any particular credit program (including the program which the party requesting this preemption Part 204 —Reserve Requirements of Depository determination proposes to establish) qualifies as a Institutions special-purpose credit program under the ECOA and Regulation B. As explained in comment 8(a)-1 of the 1. The authority citation for 12 C.F.R. Part 204 conofficial staff commentary to Regulation B (12 C.F.R. tinues to read as follows: Part 202, Supp. 1), the agency or creditor administering or oflfering the credit program must make that Authority: Sections 11(a), 11(c), 19, 25, 25(a) of the determination. Federal Reserve Act (12 U.S.C. §§ 248(a), 248(c), 371a, 371b, 461, 601, 611); section 7 of the International Banking Act of 1978 (12 U.S.C. § 3105); and AMENDMENT TO REGULATION D section 411 of the Garn-St Germain Depository Institutions Act of 1982 (12 U.S.C. § 461). The Board of Governors is amending 12 C.F.R. Part 204, its Regulation D, Reserve Requirements of De- 2. In section 204.9 - Reserve Requirement Ratios, pository Institutions. The regulation is revised paragraphs (a)(1) and (a)(2) are revised to read as (1) to increase the amount of transaction accounts follows: subject to a reserve requirement ratio of three percent, (a)(1) Reserve percentages. The following reserve raas required by section 19(b)(2)(C) of the Federal Re- tios are prescribed for all depository institutions, serve Act (12 U.S.C. § 461(b)(2)(C)), from $40.5 Edge and Agreement Corporations, and United million to $41.5 million of net transaction accounts States branches and agencies of foreign banks: (known as the low reserve tranche adjustment); (2) to increase the amount of reservable liabilities of each depository institution that is subject to a reserve requirement of zero percent, as required by section 19(b)(ll)(B) of the Federal Reserve Act (12 U.S.C. § 461(b)(ll)(B)), from $3.2 million to $3.4 million of Category Reserve Requirement reservable liabilities (known as the reservable liabilities exemption adjustment); and Net transaction accounts* $0 to $41.5 million 3 percent of amount (3) to increase the deposit cutoff level which is used in over $41.5 million $1,245,000 plus 12 percent of conjunction with the reservable liabilities exemption amount over $41.5 million Nonpersonal time deposits amount to determine the frequency of deposit report- By original maturity (or ing from $40.0 million to $42.1 million. notice period): Less than 1 Vi years 3 percent 1V2 years or more 0 percent For depository institutions that report weekly, the Eurocurrency liabilities 3 percent low reserve tranche adjustment and the reservable *Dollar amounts do not reflect the adjustment to be made by the liabilities exemption adjustment will be effective start- next paragraph. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 27 (2) Exemption from reserve requirements. Each commercial banks in the market. Applicant and its depository institution, Edge or Agreement Corpora- principals are not affiliated with any other depository tion, and U.S. branch or agency of a foreign bank is institution. Accordingly, consummation of this prosubject to a zero percent reserve requirement on an posal would not result in any adverse effects on amount of its transaction accounts subject to the low competition. reserve tranche in paragraph (a)(1), nonpersonal The Board has considered the protest filed by Stocktime deposits, or Eurocurrency liabilities or any growers State Bank Company, Inc., Worland, Wyocombination thereof not in excess of $3.4 million ming, relating to the commercial reasonableness of the determined in accordance with section 204.3(a)(3) of sale of shares of Bank to Applicant under state law. this Part. The Board has previously indicated that the standards of section 3(c) of the BHC Act do not require the Board to adjudicate issues that do not raise statutory factors that the Board must consider in approving an application.3 In this case, the matter of compensation ORDERS ISSUED UNDER BANK HOLDING for the shares of Bank is not directly related to the COMPANY ACT factors the Board must consider in approving the application. Orders Issued Under Section 3 of the Bank Based upon the facts of record, including certain Holding Company Act commitments made by Applicant, the financial and managerial resources and future prospects of Appli- Financial Partners, Inc. cant and Bank are consistent with approval. Consid- Worland, Wyoming erations relating to convenience and needs of the communities to be served also are consistent with Order Approving Formation of a Bank Holding approval of the application. Company Based on the foregoing and other facts of record, the Board has determined that the application should be, Financial Partners, Inc., Worland, Wyoming ("Ap- and hereby is, approved. The transaction shall not be plicant"), has applied for the Board's approval under consummated before the thirtieth calendar day followsection 3(a)(1) of the Bank Holding Company Act ing the effective date of this Order, or later than three (12 U.S.C. § 1842(a)(1)) ("BHC Act"), to become a months following the effective date of this Order, bank holding company by acquiring 96.4 percent of the unless such period is extended for good cause by the outstanding voting shares of Stockgrowers State Board or by the Federal Reserve Bank of Kansas City, Bank, Worland, Wyoming ("Bank"). pursuant to delegated authority. Notice of the application, affording an opportunity By order of the Board of Governors, effective Nofor interested persons to submit comments, has been vember 21, 1988. given in accordance with section 3(b) of the BHC Act (53 Federal Register 25,010 (1988)). The time for filing Voting for this action: Chairman Greenspan and Governors comments has expired, and the Board has considered Johnson, Seger, Angell, Heller, Kelley, and LaWare. the application and all comments received in light of the factors set forth in section 3(c) of the BHC Act. JAMES MCAFEE Applicant is a nonoperating corporation formed to Associate Secretary of the Board acquire Bank. Bank is the 19th largest commercial banking organization in Wyoming, with total deposits First National of Nebraska, Inc. of approximately $46.8 million, representing 1.2 per- Omaha, Nebraska cent of the total deposits in commercial banks in the state.1 Consummation of the transaction would not Order Approving the Acquisition of a Bank Holding result in an increase in the concentration of banking Company resources in Wyoming. Bank operates in the Washakie County banking First National of Nebraska, Inc., Omaha, Nebraska market,2 where it is the largest of three commercial ("First National"), a bank holding company within the banks, controlling 48.3 percent of the total deposits in 3. See, e.g., Hudson Financial Associates, 72 FEDERAL RESERVE 1. Banking data are as of December 31, 1987. BULLETIN 150 (1986); Suburban Bancorp, Inc., 71 FEDERAL RESERVE 2. The Washakie County banking market is approximated by BULLETIN 581 (1985); Western Bancshares, Inc. v. Board of Gover- Washakie County, Wyoming. nors of the Federal Reserve System, 480 F.2d 749 (1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1989 meaning of the Bank Holding Company Act (the action, with the Herfindahl-Hirschman Index "Act") (12 U.S.C. § 1841 et seq.), has applied for the ("HHI") increasing 303 points to 1919.4 Board's approval under section 3(a)(3) of the Act Although consummation of this proposal would (12 U.S.C. § 1842(a)(3)) to acquire all of the voting eliminate some existing competition between First shares of First National Columbus Bancorp, Colum- National and Bancorp in the Columbus banking marbus, Nebraska ("Bancorp"). ket, numerous other commercial banks would con- Notice of the application, affording interested per- tinue to operate in the market after consummation of sons an opportunity to submit comments, has been this proposal. In addition, the Board has considered duly published (53 Federal Register 32,452 (1988)). the presence of thrift institutions in this banking mar- The time for filing comments has expired, and the ket in its analysis of this proposal. The Board has Board has considered the application and all com- previously indicated that thrift institutions have bements received in light of the factors set forth in come, or have the potential to become, major competsection 3(c) of the Act. itors of commercial banks.5 In the Columbus market, First National is the third largest commercial bank- thrift institutions account for a significant percentage ing organization in Nebraska, controlling total depos- of the total deposits.6 Based upon the size and market its of approximately $850.3 million, representing 5.9 share of thrift institutions, the Board has concluded percent of the total deposits in commercial banking that thrift institutions exert a significant competitive organizations ("total bank deposits") in the state.1 influence that mitigates the anticompetitive effects of Bancorp is the sixth largest commercial banking orga- this proposal in this banking market.7 nization in Nebraska, controlling deposits of $185.1 On the basis of the foregoing and other facts of million, representing 1.3 percent of the total bank record, the Board concludes that consummation of deposits in the state. Upon consummation of this this proposal would not have a significantly adverse proposal, First National would remain the third largest effect on existing competition in the Columbus bankcommercial banking organization in Nebraska, con- ing market. In addition, the Board concludes that, trolling deposits of $1.0 billion, representing 7.2 per- based on the number of probable future entrants in the cent of the total bank deposits in the state. Accord- markets, consummation of this proposal would not ingly, consummation of this proposal would not have have a significant adverse effect on probable future any significant adverse effects on the concentration of competition in any relevant market. banking resources in Nebraska. The financial and managerial resources of First The subsidiary banks of Bancorp and First National National and Bancorp are considered satisfactory and compete directly in the Columbus, Nebraska, banking consistent with approval. market.2 In this market, Bancorp's subsidiary bank, The Board has received a protest from the Omaha First National Bank & Trust Company, is the largest Black Forum, an umbrella organization representing bank, with deposits of $175.6 million, representing 34.3 percent of the market's banking deposits. First National's subsidiary bank, First National Bank of 4. Under the revised Department of Justice Merger Guidelines, 49 Omaha, also has a branch operating within the Colum- Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is above 1800 is considered highly concentrated. In bus market with $22.7 million in deposits and a market such markets, the Justice Department is likely to challenge a merger share of 4.4 percent.3 The Columbus market is mod- that increases the HHI by more than 50 points. The Justice Departerately concentrated, with the four largest commercial ment has informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors banks controlling 60.4 percent of the total bank depos- indicating anticompetitive effects) unless the post-merger HHI is at its in the market. Upon consummation, First National least 1800 and the merger increases the HHI by at least 200 points. The Justice Department has stated that the higher than normal HHI would remain the largest commercial banking organithresholds for screening bank mergers for anticompetitive effects zation in the market, controlling 38.7 percent of mar- implicitly recognizes the competitive effect of limited-purpose lenders ket deposits in commercial banks, and the four-firm and other non-depository financial entities. 5. National City Corporation, 70 FEDERAL RESERVE BULLETIN 743 concentration ratio would increase 4.4 points to 64.8 (1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE percent. The market would be considered highly con- BULLETIN 529 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE centrated after consummation of the proposed trans- BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); and First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983). 6. Thrift institutions control 24 percent of the combined deposits of 1. State banking data are as of December 31, 1987. banks and thrifts in the Columbus banking market. Market deposit 2. The Columbus banking market is approximated by the following data for thrift institutions are as of June 30, 1986. areas in Nebraska: Platte County; the town of Genoa in Nance 7. If 50 percent of deposits held by thrift institutions in the County; the southern two-thirds of Colfax County; the northwest Columbus banking market were included in the calculation of market corner of Butler County; the northeastern half of Polk County; and the concentration, First National's pro forma market share would be 33.3 town of Silver Creek in Merrick County. percent. The market would be considered moderately concentrated 3. Market deposit data are as of June 30, 1987. with the HHI increasing by 224 points to 1481. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 29 various local community groups. The protest alleged a Voting for this action: Vice Chairman Johnson and Goverlack of detail concerning certain activities and pro- nors Seger, Angell, and LaWare. Absent and not voting: Chairman Greenspan and Governors Heller and Kelley. grams in the statement required to be filed by First National's lead bank, First National Bank of Omaha, JAMES MCAFEE under the Community Reinvestment Act, 12 U.S.C. Associate Secretary of the Board § 2901 et seq. ("CRA"). As an initial matter, the Board has reviewed this Washington National Holdings, N.V. statement and finds that it complies with the require- Netherlands Antilles ments for such CRA statements set forth in the Board's Regulation BB, 12 C.F.R. § 228.4. In addi- Washington Bancorporation tion, the Board notes that the CRA statement is but Washington, D.C. one factor that the Board assesses in considering a banking organization's compliance with the Act's re- Order Approving Acquisition of Bank, Membership quirement that a banking organization serve the conin the Federal Reserve System, and Establishment of venience and needs of its local community. These Branch additional factors considered by the Board include any evidence of prohibited discriminatory or other illegal Washington National Holdings, N.V., Netherlands credit practices; the geographic distribution of credit Antilles ("Holdings"), and Washington Bancorporaextensions, credit applications, and credit denials; and tion, Washington, D.C. ("Bancorporation") (collecthe origination of residential mortgage loans, housing tively referred to as "Applicants"), bank holding rehabilitation loans, home improvement loans, and companies within the meaning of the Bank Holding small business loans within the community. In this Company Act (the "BHC Act"), have applied for the regard, the Board notes that the primary federal regu- Board's approval under section 3 of the BHC Act lator of First National Bank of Omaha, who examines (12 U.S.C. § 1842) and under section 225.14 of the for compliance with these factors, gave the bank a Board's Regulation Y (12 C.F.R. § 225.14) to acquire satisfactory CRA rating during its most recent examicontrol of all of the voting shares of The Washington nation. Accordingly, the Board concludes that conve- Bank (of Maryland) ("Washington Bank-Maryland"), nience and needs considerations in this case are consistent with approval of the application.8 Based on the a state-chartered commercial bank to be located in Maryland. foregoing and other facts of record, the Board has determined that the application should be, and hereby Notice of the application, affording interested peris, approved. The acquisition of Bancorp shall not be sons an opportunity to submit comments, has been consummated before the thirtieth calendar day follow- given in accordance with section 3(b) of the BHC Act ing the effective date of this Order, or later than three (12 U.S.C. § 1842(b)) (53 Federal Register 28,694; 53 months after the effective date of this Order, unless Federal Register 45,160 (1988)). The time for filing such period is extended for good cause by the Board or comments has expired, and the Board has considered by the Federal Reserve Bank of Kansas City, acting the application and all comments received in light of pursuant to delegated authority. the factors set forth in section 3(c) of the BHC Act (12 U.S.C. § 1842(c)).1 No hearing has been re- By order of the Board of Governors, effective Noquested in this case. vember 16, 1988. Washington Bank-Maryland will be the successor by merger to two Maryland-chartered savings and loan associations formerly privately insured by the 8. The Protestant has also requested that the Board order a public Maryland Savings-Share Insurance Corporation hearing on the application. Although section 3(b) of the Act does not ("MSSIC"): Center Savings & Loan Association, require a formal hearing in this instance, the Board may, in any case, order a formal or informal hearing. Under the Board's Regulation Y, Baltimore, Maryland ("Center"), and Universal Savthe Board shall order a hearing "only if there are disputed issues of ings & Loan Association, Inc., Pikesville, Maryland material fact that cannot be resolved in some other manner." 12 ("Universal"). Washington Bank-Maryland will be C.F.R. § 225.23(g). The Board's Rules of Procedure also provide that a public meeting may be held to clarify factual issues related to an held directly by Bancorporation, a subsidiary of application or to provide an opportunity for interested persons to Holdings.2 testify. 12 C.F.R. § 262.25(d). Protestant does not present any material questions of fact that are in dispute, nor has the Protestant alleged any additional facts to demonstrate that First National is not in compliance with the CRA. Under these circumstances, and in light of 1. The Board received one adverse comment, from Holdings, all of the facts of record, the Board has determined that a public concerning the managerial and financial resources of Bancorporation. hearing or meeting is not necessary to clarify the record in this case 2. Holdings owns or controls approximately 27.6 percent of the and would serve no useful purpose. Accordingly, the request for a outstanding common stock of Bancorporation and serves as an public hearing is hereby denied. investment vehicle for foreign investors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Federal Reserve Bulletin • January 1989 Applicants propose to acquire Washington Bank- future prospects of the companies and the banks Maryland, a commercial bank to be chartered by the concerned. In its consideration of these factors, the state of Maryland, pursuant to recently enacted Board has taken into account the comments filed by legislation.3 Upon consummation of the acquisition, Holdings. Based upon its review of the entire record, Washington Bank-Maryland will operate one commer- the Board concludes that these considerations are cial bank branch within the state. consistent with approval. The establishment of Washington Bank-Maryland Consummation of Applicants' proposal will provide and its acquisition by Applicants is a part of the State's adequate capitalization and continuing financial supcontinuing effort over the last three years to resolve port to the successor to the thrift institutions involved the financial crisis in Maryland involving MSSIC- in the application. At consummation, Bancorporation insured savings and loan associations. Universal, with will inject a total of $3 million in new capital into $21 million in deposits,4 has been transferred from Washington Bank-Maryland. Bank thereafter will conservatorship to receivership,5 and its depositors have a level of primary capital in excess of the have had their funds frozen for the past 14 months. minimum standards set forth in the Board's Capital By letter dated September 6, 1988, the Maryland Adequacy Guidelines. This will ensure that service Bank Commissioner informed the Board that it was provided by the thrift institutions to the convenience ready to approve the applications for conversion of the and needs of their relevant communities will resume. thrifts to a state chartered bank and for the Applicants The proposed transaction is the most feasible solution to acquire the resultant bank. Further, the Maryland to permit Center and Universal, as Washington Bank- Bank Commissioner requested that the Board act Maryland, to resume full operations promptly and to expeditiously in this matter. The Bank Commissioner allow their depositors immediate and full access to advised the Board that an emergency situation exists their funds at the least cost to the State of Maryland. in the State of Maryland with respect to savings and Accordingly, the Board concludes that convenience loan associations formerly insured by MSSIC.6 and needs factors lend substantial weight to approval Bancorporation, with total assets of $2.2 billion, of this application. controls one bank subsidiary, The National Bank of On the basis of all of the above, including particu- Washington, Washington, D.C., the second largest larly the compelling benefits of the proposal to the commercial banking organization in the District of depositors of these institutions and to the public, the Columbia.7 Applicants also engage in a variety of Board concludes that approval of the proposed transnonbanking activities in the greater District of Colum- action would be in the public interest. bia area. Washington Bank-Maryland's assets will Section 3(d) of the BHC Act prohibits a bank account for less than 1 percent of Bancorporation's holding company from acquiring a bank outside of the pro forma assets. Bancorporation's financial condition bank holding company's home state unless the statute is consistent with approval. laws of the state where the target bank is located Center and Universal compete in separate banking specifically authorize such an acquisition.8 Newly codmarkets. Bancorporation currently operates no bank- ified section 5-1008 of the Financial Institutions Artiing subsidiaries within Maryland. In view of the rela- cle of the Maryland Code provides specific statutory tively small size of the institutions involved, the num- authorization for Applicants' proposed acquisition of ber of potential entrants into the relevant markets, and Washington Bank-Maryland. Accordingly, the instant the fact that Washington Bank-Maryland, Center, and proposal would not violate the Douglas Amendment. Universal operate in separate banking markets, the Washington Bank-Maryland has applied under sec- Board finds that this acquisition would not have any tion 9 of the Federal Reserve Act, 12 U.S.C. § 321 significant adverse effect on existing or potential com- et seq., and section 208.4 of the Board's Regulation H, petition in any relevant market. 12 C.F.R. § 208.4, to become a member of the Federal Under the BHC Act, the Board is required to Reserve System upon consummation of these acquisiconsider the financial and managerial resources and tions. It also has applied under section 9 of the 3. Chapter 80, Laws of Maryland (1988), codified at Md. Fin. Inst. Code Ann. § 5-1008. 8. 12 U.S.C. § 1842(d). The home state of the acquiring holding 4. Center has $9 million in deposits. Financial data are as of June 30, company is defined for Douglas Amendment purposes as the state in 1988. which the operations of the bank holding company's bank subidiaries 5. Under Maryland law, deposit withdrawals are generally re- were principally conducted on the later of July 1, 1966, or the date on stricted after commencement of the conservatorship and interest which the company became a bank holding company. Id. The Board accumulation ceases upon transferral into receivership. has previously determined that a District of Columbia bank holding 6. If Center does not receive federal deposit insurance by mid-year company can make acquisitions in Maryland. James Madison, Ltd., 1989, it will be forced to liquidate. 73 FEDERAL RESERVE BULLETIN 129 (1987). See generally Md. Fin. 7. Financial data are as of September 30, 1988. Inst. Code Ann. § 5-1001, et seq. (Supp. 1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 31 Federal Reserve Act and section 208.9 of the Board's 225.25(b)(8)(vii) of the Board's Regulation Y Regulation H, 12 C.F.R. § 208.9, to establish a (12 C.F.R. § 225.25(b)(8)(vii)). branch. The Board has considered the factors it is Notice of the application, affording interested perrequired to consider when approving applications for sons an opportunity to submit comments, has been membership pursuant to section 9 of the Federal duly published (53 Federal Register 21,525 (1988)). Reserve Act (12 U.S.C. § 322) and section 6 of the The time for filing comments has expired and the Federal Deposit Insurance Act (12 U.S.C. § 1816), Board has considered this application and the comand finds those factors to be consistent with approval. ments received from the American Land Title Associ- Bank appears to meet all the criteria for admission to ation ("ALTA"), in light of the public interest factors membership, including capital requirements and con- set forth in section 4(c)(8) of the BHC Act. siderations related to management character and qual- First Wisconsin, with consolidated assets of $7.2 ity. Further, Washington Bank-Maryland meets all the billion,1 controls 33 subsidiary banks and is the largest criteria to establish a branch. Accordingly, Washing- commercial banking organization in Wisconsin. First ton Bank-Maryland's applications to become a mem- Wisconsin has applied for Milwaukee Title to engage ber of the Federal Reserve System and to establish a in title insurance agency activities pursuant to exempbranch are approved. tion G of the Garn-St Germain Depository Institutions On the basis of the entire record, the section 3 Act of 1982 ("Garn Act"). Title USA Insurance Corapplication to acquire control of Washington Bank- poration of New York, an unaffiliated corporation, will Maryland and the section 9 applications to become a underwrite the title insurance policies sold by Milwaumember in the Federal Reserve System and to estab- kee Title. First Wisconsin will not engage in underlish a branch are approved for the reasons summarized writing title insurance. above. The transaction shall not be consummated Title VI of the Garn Act amended section 4(c)(8) of before the thirtieth calendar day following the effective the BHC Act to provide that insurance agency, brodate of this Order, unless such period is extended for kerage, and underwriting activities are not "closely good cause by the Board or by the Federal Reserve related to banking" and thus are not permissible Bank of Richmond, pursuant to delegated authority. activities for bank holding companies, unless the ac- By order of the Board of Governors, effective No- tivities are included within one of seven specific exvember 28, 1988. emptions (A through G) contained in section 4(c)(8). First Wisconsin claims it is authorized to operate a Voting for this action: Chairman Greenspan and Governors title insurance agency under exemption G, which Johnson, Seger, Angell, Heller, Kelley, and LaWare. authorizes those bank holding companies that engaged, with Board approval, in insurance agency ac- JAMES MCAFEE tivities prior to 1971, to engage, or control a company Associate Secretary of the Board engaged, in insurance agency activities. First Wisconsin does not qualify to engage in title insurance agency Orders Issued Under Section 4 of the Bank activities, directly or through a subsidiary, under any Holding Company Act other exemption. First Wisconsin has been engaged in the sale of First Wisconsin Corporation insurance related to extensions of credit by its subsid- Milwaukee, Wisconsin iary banks since 1939. In 1959, First Wisconsin received approval from the Board, under the provisions Order Approving Acquisition of a Company Engaged of the BHC Act, to retain an insurance agency subsidin Title Insurance Agency Activities iary, First Wisconsin Company, which engaged in the sale of credit life insurance to customers of First First Wisconsin Corporation, Milwaukee, Wisconsin Wisconsin.2 First Wisconsin has been engaged in the ("First Wisconsin"), a bank holding company within sale of credit life insurance through this and successor the meaning of the Bank Holding Company Act of insurance agency subsidiaries on a continuous basis 1956, as amended ("BHC Act") (12 U.S.C. § 1841 since receiving Board approval in 1959. First Wisconet seq.), has applied under section 4(c)(8) of the BHC sin is one of 16 active companies with grandfather Act (12 U.S.C. § 1843(c)(8)) and section 225.23(a) of rights under exemption G. the Board's Regulation Y (12 C.F.R. § 225.23(a)) to acquire all of the outstanding shares of Milwaukee Title Insurance Service, Inc., Milwaukee, Wisconsin 1. All banking data are as of June 30, 1988. ("Milwaukee Title"), a company which will engage in 2. See Wisconsin Bankshares Corp., 45 FEDERAL RESERVE BULLEtitle insurance agency activities pursuant to section TIN 1136(1959). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1989 In 1985, First Wisconsin received approval from the Therefore, although the Board may not have specif- Board to expand its insurance agency activities ically approved title insurance prior to 1971, this through the operation of a general insurance agency activity would fall within exemption G if it is encomengaged in the sale of all types of personal and passed within the authorization of insurance agency commercial insurance to the general public as well as activities. In its analysis of this issue, the Board has to First Wisconsin's customers.3 In interpreting ex- considered the plain meaning of the term "insurance" emption G of section 4(c)(8), the Board determined as well as the terms and intent of the Garn Act. Title that First Wisconsin is authorized under that provision insurance is "insurance" within the commonly underto engage in general insurance agency activities and stood meaning of the term. ALTA does not contend thus to sell various types of insurance that it was not that title insurance is not insurance. First Wisconsin selling in 1971.4 would sell title insurance only as agent. The proposed ALTA asserts that exemption G only exempts the activity thus falls within the literal authorization of specific types of insurance agency activities the Board exemption G and the Board's implementing regulaauthorized bank holding companies to engage in be- tion. 12 C.F.R. § 225.25(b)(8)(vii). fore 1971. Since the Board did not approve any appli- Nothing in the terms or legislative history of the cations before 1971 that specified title insurance, in Garn Act appears to support ALTA's argument that ALTA's opinion First Wisconsin cannot engage in the selling title insurance falls outside the authorization of sale of title insurance. ALTA also argues that exemp- exemption G. In addition, the Board previously has tion G only exempts general insurance agency activi- concluded that the term "insurance" in the Garn Act ties and title insurance is a unique type of insurance includes title insurance.6 Accordingly, the Board benot sold by general insurance agencies. Finally, ALTA lieves that First Wisconsin's proposal to sell title asserts that approval of this application will not result insurance through Milwaukee Title is permissible purin any public benefits and will adversely effect compe- suant to exemption G and the Board's regulations. tition. There is no evidence in the record indicating that The Board has previously determined that those consummation of First Wisconsin's proposal would companies that received Board approval to engage in result in any undue concentration of resources, adgeneral insurance agency activities prior to 1971 are verse effects on competition, conflicts of interests, grandfathered under exemption G with respect to the unsound banking practices, or any other adverse efsale of any type of insurance that is within the scope of fects. First Wisconsin will provide an additional general insurance agency activities—even an insur- source for insurance that is particularly convenient for ance agency activity (such as title insurance) not its customers. It has indicated that it will act affirmaactually offered by the applicant bank holding com- tively to ensure compliance with all laws and regulapany before 1971.5 In reaching this conclusion, the tions prohibiting tie-ins by advising borrowers that Board noted that the language of exemption G does they can obtain title insurance from any source they not limit or restrict the scope of permissible insurance choose. Accordingly, the Board has determined that agency activities for qualifying bank holding compa- the balance of the public interest factors the Board is nies to those insurance agency activities approved by required to consider under section 4(c)(8) of the BHC the Board prior to 1971. The language of exemption G Act is favorable. permits a bank holding company to engage in insur- Based upon the foregoing and other facts of record, ance activities provided the company "was engaged, the application is hereby approved. This determination directly or indirectly, in insurance agency activities as is subject to the conditions set forth in section a consequence of approval by the Board prior to 225.23(b) of Regulation Y (12 C.F.R. § 225.23(b)) and January 1, 1971." There is no requirement in the to the Board's authority to require such modification statute that a company qualifying for exemption G or termination of the activities of a holding company or engage only in those insurance agency activities it any of its subsidiaries as the Board finds necessary to conducted with Board approval prior to 1971. The assure compliance with the provisions and purposes of Board also found this interpretation to be consistent the BHC Act and the Board's regulations and orders with Congressional intent and the general structure of issued thereunder, or to prevent evasion thereof. the Gam Act exemptions. The proposal shall be consummated not later than three months after the effective date of this Order, unless such period is extended for good cause by the 3. First Wisconsin Corporation, 71 FEDERAL RESERVE BULLETIN 171 (1985). 4. Id. at 172-173. 5. First Wisconsin Corporation, 71 FEDERAL RESERVE BULLETIN 172; Norwest Corporation, 70 FEDERAL RESERVE BULLETIN 470 6. Letter from the Board, to Independence Bancorp, Perkaise, (1984). Pennsylvania (March 17, 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 33 Board or by the Federal Reserve Bank of Chicago, tion and similar transactions for nonaffiliated financial pursuant to delegated authority. and nonfinancial institutions.1 By order of the Board of Governors, effective No- Applicant, with consolidated assets of $8.8 billion, is vember 17, 1988. the 60th largest banking organization in the nation. It operates twelve subsidiary banks and engages directly and through subsidiaries in a broad range of permissi- Voting for this action: Vice Chairman Johnson and Governors Seger, Angell, and LaWare. Absent and not voting: ble nonbanking activities.2 Chairman Greenspan and Governors Heller and Kelley. Notice of the application, affording interested persons an opportunity to submit comments on the pro- WILLIAM W. WILES posal, has been published (53 Federal Register 40,492 Secretary of the Board (1988)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the public interest factors set forth in section 4(c)(8) of the BHC Act. Huntington Bancshares Incorporated The Board has previously determined that the con- Columbus, Ohio duct of the proposed ineligible securities underwriting and dealing activity is consistent with section 20 of the Glass-Steagall Act, provided the underwriting subsidiary derives no more than 5 percent of its total gross Order Approving Application to Engage in revenue from underwriting and dealing in the ap- Underwriting and Dealing in Certain Securities to a proved securities over any two-year period.3 The Limited Extent Board further found that, subject to the prudential framework of limitations established in those cases to address the potential for conflicts of interests, unsound Huntington Bancshares Incorporated, Columbus, banking practices or other adverse effects, the pro- Ohio, a bank holding company within the meaning of posed underwriting and dealing activities were so the Bank Holding Company Act (12 U.S.C. § 1841 closely related to banking as to be a proper incident et seq. ("BHC Act"), has applied for the Board's thereto within the meaning of section 4(c)(8) of the approval under section 4(c)(8) of the BHC Act (12 BHC Act. Applicant has committed to conduct its U.S.C. § 1843(c)(8)) and section 225.23 of the Board's ineligible underwriting and dealing activities subject to Regulation Y (12 C.F.R. § 225.23) for its subsidiary, the 5 percent revenue test and the prudential limita- The Huntington Company, Columbus, Ohio ("Com- tions established by the Board in its Citicorp!Morgan! pany"), to engage de novo on a limited basis, in Bankers Trust and Chemical Orders.4 underwriting and dealing in: Consummation of the proposal would provide added (1) municipal revenue bonds, including certain indus- convenience to Applicant's customers. In addition, trial development bonds; the Board expects that the de novo entry of Applicant (2) 1-4 family mortgage-related securities; into the market for these services would increase the (3) commercial paper; and level of competition among providers of these ser- (4) consumer-receivable-related securities ("CRRs") vices. Accordingly, the Board has determined that the (collectively "ineligible securities"). performance of the proposed activities by Applicant can reasonably be expected to produce public benefits Company is currently authorized to engage in providing securities brokerage services pursuant to 12 1. These activities were approved by the Federal Reserve Bank of C.F.R. § 225.25(b)(15); investment advisory services Cleveland pursuant to delegated authority by letters dated August 10, pursuant to section 225.25(b)(4); and underwriting and 1987, and February 23, 1988. 2. All data are as of June 30, 1988. dealing in U.S. government securities pursuant to 3. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust section 225.25(b)(16). Company has also received New York Corporation, 73 FEDERAL RESERVE BULLETIN 473 (1987) prior approval to purchase and sell gold and silver for ("Citicorp/Morgan/Bankers Trust"), ajf d sub nom., Securities Industry Association v. Board of Governors of the Federal Reserve System, the account of customers; provide advice regarding 839 F.2d 47 (2d Cir. 1988), cert, denied, 108 S. Ct. 2830 (1988) ("SM structuring and arranging interest rate swaps, interest v. Board")-, and Chemical New York Corporation, The Chase Manrate caps, and similar transactions; provide advice in hattan Corporation, Bankers Trust New York Corporation, Citicorp, Manufacturers Hanover Corporation and Security Pacific Corporaconnection with merger, acquisition/divestiture and tion, 73 FEDERAL RESERVE BULLETIN 731 (1987) ("Chemical"). financing transactions for nonaffiliated financial and 4. Applicant has not proposed a market share limitation. Accordnonfinancial institutions; and furnish evaluation and ingly, and in light of the decision in SI A v. Board, the Board has determined not to require Applicant to comply with a market share fairness opinions in connection with merger, acquisi- limitation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1989 which would outweigh adverse effects under the owned subsidiary, Signet Investment Corporation proper incident to banking standard of section 4(c)(8) ("SIC"), to provide investment advice and securities of the BHC Act.5 Based on the above, the Board has brokerage services to retail and institutional customdetermined to approve the underwriting application ers. SIC currently engages in discount brokerage acsubject to all of the terms and conditions established in tivities in accordance with section 225.25(b)(15) of the Citicorp!Morgan!Bankers Trust and Chemical Or- Regulation Y, 12 C.F.R. § 225.23(b)(15). ders, except the market share limitation.6 Applicant is a multi-bank holding company owning The Board's determination is subject to all of the commercial banks in Virginia, Maryland, and the conditions set forth in the Board's Regulation Y, District of Columbia. At June 30,1988, the corporation including those in sections 225.4(d) and 225.23(b), and reported total assets of $11.4 billion and total deposits to the Board's authority to require modification or of $7.6 billion. termination of the activities of a bank holding com- Notice of the application, affording interested perpany or any of its subsidiaries as the Board finds sons an opportunity to submit comments on the pronecessary to assure compliance with, and to prevent posal, has been duly published (53 Federal Register evasion of, the provisions of the BHC Act and the 43,476 (1988)). The time for filing comments has ex- Board's regulations and orders issued thereunder. pired and the Board has considered the application and This transaction shall not be consummated later all comments received in light of the public interest than three months after the effective date of this factors set forth in section 4(c)(8) of the Bank Holding Order, unless such period is extended for good cause Company Act. by the Board or by the Federal Reserve Bank of The Board has previously determined that the com- Cleveland, pursuant to delegated authority. bined offering of investment advice and securities By order of the Board of Governors, effective No- execution services to institutional and retail customers vember 28, 1988. from the same bank holding company subsidiary is closely related and a proper incident to banking under Voting for this action: Chairman Greenspan and Governors section 4(c)(8) of the BHC Act, and does not violate Johnson, Seger, Angell, Heller, Kelley, and LaWare. the Glass-Steagall Act. National Westminister Bank PLC, et al., 72 FEDERAL RESERVE BULLETIN 584 JAMES MCAFEE (1986) ("NatWest"J;1 Bank of New England Corpora- Associate Secretary of the Board tion, 74 FEDERAL RESERVE BULLETIN 700 (1988) {"BNEC"). Signet Banking Corporation SIC proposes to conduct its brokerage and advisory Richmond, Virginia activities within the same framework approved by the Board in BNEC. Signet has, however, proposed to Order Approving Application to Engage in establish certain interlocking relationships between Combined Investment Advisory and Securities SIC and its bank affiliates. Signet proposes that certain Brokerage Activities non-sales, non-executive employees of its affiliated banks will provide clerical and support services for Signet Banking Corporation, Richmond, Virginia SIC, and that certain non-executive officers of Signet's ("Applicant" or "Signet"), a bank holding company bank affiliates will serve as directors of SIC. These within the meaning of the Bank Holding Company Act employees and directors will not have contact with the (the "BHC Act") (12 U.S.C. § 1841 et seq.), has public or participate in the sales activities of SIC. applied for the Board's approval under section 4(c)(8) Officers and employees of SIC would not otherwise be of the BHC Act and section 225.23(a)(3) of the Board's employees or officers of any of Applicant's subsidiary Regulation Y, 12 C.F.R. § 225.23(a)(3), for its wholly banks. In particular, SIC's sales personnel will be employees of SIC and not of Signet's bank subsidiaries. Applicant has also committed that it will not 5. Company may also provide services that are necessary incidents permit its banks to share confidential customer inforto these approved activities. The incidental services should be taken into account in computing the gross revenue limit on the underwriting mation with SIC, and SIC will not be permitted to subsidiary's ineligible underwriting and dealing activities, to the transmit its advisory research or recommendations, extent such limits apply to particular incidental activities. either through the proposed interlocks or otherwise, to 6. The industrial development bonds approved in those applications and for Applicant in this case are only those tax exempt bonds in which the governmental issuer, or the governmental unit on behalf of which the bonds are issued, is the owner for federal income tax purposes of the financed facility (such as airports, mass commuting facilities, and water pollution control facilities). Without further 1. Affirmed, sub. nom., Security Industry Ass'n v. Board of approval from the Board, Company may underwrite or deal in only Governors, 821 F.2d 810 (D.C. Cir. 1987), cert, den., 108 S. Ct. 697 these types of industrial development bonds. (1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 35 the commercial lending department of any bank affil- Bank of Boston Corporation ("Bank of Boston"), iate. Boston, Massachusetts, a bank holding company The Board has previously permitted these types of within the meaning of the Bank Holding Company Act limited interlocks for affiliates providing full-service of 1956 ("BHC Act") (12 U.S.C. § 1841 et seq.), has brokerage.2 applied for the Board's approval under section 3(a)(3) Based upon the foregoing and other considerations of the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire reflected in the record, and in reliance on the commit- BankVermont Corporation, Burlington, Vermont, and ments offered by Applicant regarding the conduct of thereby indirectly to acquire Bank of Vermont SIC's affairs, the Board has determined that the public ("Bank"), Burlington, Vermont. Applicant also has benefits associated with consummation of this pro- applied for the Board's approval pursuant to section 4 posal can reasonably be expected to outweigh possible of the BHC Act (12 U.S.C. § 1843(c)(8)) to acquire adverse effects, and that the balance of the public BankVermont's nonbanking subsidiary, Future Planinterests factors that the Board is required to consider ning Associates, Inc., South Burlington, Vermont, and under section 4(c)(8) of the BHC Act is favorable. thereby engage in providing retirement plan consult- Accordingly, the Board believes that the application ing, design and actuarial and administrative services to should be, and hereby is, approved. This determina- corporations and individuals. tion is subject to all of the conditions set forth in the Notice of the applications, affording an opportunity Board's Regulation Y, including those in sections for interested persons to submit comments, has been 225.4(d) and 225.23(b), and to the Board's authority to duly published (53 Federal Register 30,868 (1988)). require modification or termination of the activities of The time for filing comments has expired, and the the holding company or any of its subsidiaries as the Board has considered the applications and all the Board finds necessary to assure compliance with the comments received in light of the factors set forth in provisions and purposes of the BHC Act and the sections 3(c) and 4(c)(8) of the BHC Act (12 U.S.C. Board's regulations and orders issued thereunder, or §§ 1842(c) and 1843(c)(8)). to prevent evasion thereof. Bank of Boston controls banks in Massachusetts, This transaction shall not be consummated later Connecticut, Rhode Island and Maine, with total dethan three months after the effective date of this posits of $15.5 billion.1 Bank of Boston is the second Order, unless such period is extended for good cause largest commercial banking organization in Massachuby the Board or by the Federal Reserve Bank of setts, controlling deposits of $10.8 billion, representing Richmond, pursuant to delegated authority. 20.3 percent of the deposits in commercial banking By order of the Board of Governors, effective No- organizations in the state. It is the fifth largest comvember 28, 1988. mercial banking organization in Connecticut, controlling 7.3 percent of bank deposits in the state; the second largest commercial banking organization in Voting for this action: Chairman Greenspan and Governors Johnson, Seger, Angell, Heller, Kelley, and LaWare. Rhode Island, controlling 22.6 percent of bank deposits in the state; and the second largest commercial JAMES MCAFEE banking organization in Maine, controlling 21.8 per- Associate Secretary of the Board cent of bank deposits in the state. BankVermont is the fifth largest banking organiza- Orders Issued Under Sections 3 and 4 of the tion in Vermont, controlling deposits of $513 million, Bank Holding Company Act representing 8.7 percent of deposits in banking organizations in the state.2 Bank of Boston Corporation Because Bank of Boston does not operate a bank in Boston, Massachusetts any market in which Bank of Vermont is located, consummation of the proposal would not have a Order Approving Acquisition of a Bank Holding Company and its Bank and Nonbank Subsidiaries 1. All banking data are as of June 30, 1988. 2. Bank of Vermont, which is the largest subsidiary bank of BankVermont, currently is a qualified savings bank, and BankVermont currently meets the definition of a savings bank holding company under section 2 of the Bank Holding Company Act as amended 2. J.P. Morgan and Company, Inc., 73 FEDERAL RESERVE BUL- by the Competitive Equality Banking Act of 1987. 12 U.S.C. § 1841 LETIN 810 (1987) ("J.P. Morgan") (back-office employees); Bankers (1) & (m). Upon consummation of this proposal Bank of Vermont Trust New York Company, 74 FEDERAL RESERVE BULLETIN 695 would cease to be a qualified savings bank for purposes of the Bank (1988) ("BTNY") (an officer of a bank affiliate permitted to serve as a Holding Company Act, and consequently, would no longer be entitled director of a brokerage subsidiary dealing exclusively with institu- to the exemptions provided in section 3(f)(4) of the Bank Holding tional investors). Company Act. 12 U.S.C. § 1842(f)(4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1989 substantial adverse effect on competition in any rele- requires the Board to assess the records of these vant banking market. Consummation of the proposal subsidiaries in meeting the credit needs of their entire would also not have any significant adverse effect on communities, including low- and moderate-income probable future competition in any relevant banking neighborhoods, consistent with safe and sound operamarket. tion, and to take these records into account in its The Douglas Amendment to the BHC Act prohibits evaluation of bank holding company applications. the Board from approving an application by a bank The Board has received extensive submissions from holding company to acquire control of any bank lo- the Vermont Community Reinvestment Association cated outside of the bank holding company's home ("VCRA"), the Massachusetts Urban Reinvestment state unless the acquisition is "specifically authorized Advisory Group ("MURAG"), the Rhode Island by the statute laws of the state in which such bank is Community Reinvestment Association ("RICRA"), located, by language to that effect and not merely by and the Citizens' Research and Education Network implication."3 ("CREN"), (collectively, "Protestants"),7 regarding Bank of Boston's home state is Massachusetts. the CRA performance of Bank of Boston's subsidiary Effective December 31, 1987, a Vermont statute au- banks.8 Protestants allege that Bank of Boston has thorizes a "New England bank holding company",4 engaged in a pattern of closing branch offices in lowsuch as Bank of Boston, to acquire a Vermont bank or and moderate-income areas, that its subsidiary banks bank holding company with the approval of the Ver- provide inadequate credit services in low- and modermont Commissioner of Banking and Insurance, if a ate-income areas, discourage small business borrow- Vermont bank holding company may acquire a bank in ers, exclude low- and moderate-income areas from the New England bank holding company's home their service areas, and fail to maintain satisfactory state.5 A Massachusetts statute permits bank holding relationships with community development organizacompanies located in Vermont to acquire control of a tions. Bank of Boston has submitted a detailed re- Massachusetts financial institution.6 sponse to the comments made by Protestants. In this Based on the foregoing and subject to approval of regard, a private meeting was held between Protesthe proposal by the Vermont Commissioner of Bank- tants and Bank of Boston to clarify the issues and ing and Insurance pursuant to Vermont's interstate provide a forum for the resolution of differences. This banking statute, the Board has determined that the meeting, however, did not produce a resolution of the proposed acquisition is specifically authorized by the differences between Bank of Boston and Protestants. statute laws of Vermont and that Board approval is not The Board has carefully considered the record of prohibited by the Douglas Amendment. The Board's this application, including the comments of Protes- Order is specifically conditioned upon satisfaction of tants and Bank of Boston's response, in light of the the state regulatory requirement. requirements of the CRA and the implementing regu- The financial and managerial resources and future prospects of Bank of Boston, Bank Vermont, and their 7. The Board has also received and considered comments from the respective subsidiaries are considered satisfactory and Community and Economic Development Office of the City of Burlingconsistent with approval. ton and the Valley Community Development Corporation. 8. In connection with this application, Protestants had requested an In considering the convenience and needs of the extension of the public comment period in order to permit the communities to be served, the Board has taken into Protestants an opportunity to conduct an extended study of the account the records of Bank of Boston's subsidiary pattern of branch openings and closings by Bank of Boston. The Board had earlier determined not to extend the public comment period banks under the Community Reinvestment Act in this case beyond September 7, 1988, but stated that it would ("CRA") (12 U.S.C. § 2901 et seq.). The CRA consider any comments submitted by these Protestants prior to the time the Board acted on this case regarding any aspect of the CRA performance of the institutions involved in this case. The Protestants have availed themselves of this opportunity, and have made a number 3. 12 U.S.C. § 1842(d). A bank holding company's home state for of submissions through October 31, 1988. As discussed above, the purposes of the Douglas Amendment is that state in which the total Board has carefully reviewed all of these comments. The Board will deposits of its banking subsidiaries were largest on July 1, 1966, or on consider any additional comments or extended studies that are comthe date it became a bank holding company, whichever date is later. pleted by Protestants or other interested parties regarding the CRA 4. Under the Vermont statute, a New England bank holding record of the bank subsidiaries of Applicant in the context of future company is defined as a bank holding company principally located in applications. The regulations of the Board and the other federal the states of Connecticut, Massachusetts, New Hampshire or Rhode banking agencies require banks, in connection with their CRA state- Island. 8 Vermont Statutes Annotated § 1051 et seq. ment, to maintain a public file of comments submitted regarding the 5. The Vermont interstate banking statute requires the Vermont institution's CRA record. See, e.g., 12 C.F.R. § 228.5. Comments Commissioner of Banking and Insurance to issue a determination that and studies subsequently submitted by Protestants or other interested the acquirer's principal place of business is in a reciprocal state. parties should also be submitted to the banks for inclusion in these public files. This will permit the appropriate federal banking agency 8 V.S.A. § 1054(a). The Vermont Commissioner of Banking and for the individual bank to give appropriate consideration to these Insurance by letter dated July 13, 1988, determined that Massachucomments in the examination by that agency of the CRA performance setts is a reciprocal state. of the bank. 6. Massachusetts General Laws Annotated Chapter 167A, § 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 37 lations of the federal banking agencies. Based upon established a community investment department, this record, the Board believes that the Bank of which routinely visits community development corpo- Boston has a satisfactory program in place to ensure rations, technical assistance organizations, school that its subsidiary banks carry out their responsibilities groups, public officials, human service providers, under the CRA to serve the convenience and needs of housing groups and business associations. The Boston their communities, including low- and moderate- Bank's staff is also involved in numerous community income neighborhoods, and that its subsidiary banks' organizations and advisory groups throughout its area. CRA performance is consistent with approval of the The Boston Bank's mortgage originators maintain application. regular contact with local realtors and attend real In implementing the CRA, the Board and the other estate brokerage industry seminars to ensure familiarfederal banking agencies have issued regulations spec- ity with the community's housing needs. The Boston ifying the assessment factors that would be taken into Bank periodically conducts customer surveys and account during the examination process to determine participates in a monthly survey of regional small whether the institution is meeting its responsibilities business conditions. under the CRA. See 12 C.F.R. § 228.7. Based upon The Boston Bank also seeks through specialized these factors and the Board's experience over the marketing efforts to ensure that all segments of the years in examining bank performance under the CRA, community are aware of its services. For example, the the Board believes that institutions with the most Bank regularly uses newspapers and media outlets, effective programs to help meet community credit including neighborhood weeklies and ethnic publicaneeds share a number of elements. They maintain tions, to reach all segments of the community. outreach programs which include procedures to permit The Boston Bank also has established a formalized effective communication between the bank and vari- system to monitor its CRA performance. This system ous segments of the community and formalized meth- includes a CRA compliance department with responods for incorporating findings regarding community sibility for monitoring implementation of the Boston credit needs into the development and delivery of Bank's CRA policies. In addition, the Bank annually products and services. They monitor institutional per- prepares an internal report that discusses the outreach formance at the senior management or board of direc- programs the Bank has in place to determine the needs tor level and periodically evaluate new opportunities of the community and outlines the steps taken by the for innovative lending programs, such as home mort- Bank to satisfy those needs. This report is presented to gage and neighborhood residential rehabilitation lend- the Boston Bank's board of directors and senior maning and similar programs, to meet specific community agement. In addition, staff of the Bank's community credit needs, including those of low- and moderate- investment department reports on a regular basis to a income persons. An effective program also includes subcommittee of the board of directors of the Bank the use of specifically designed marketing and adver- regarding the Bank's CRA performance. tising plans to stimulate public-awareness of the Bank of Boston's other bank subsidiaries have simbank's services throughout the community, including ilar CRA programs in place. Staff of the community low- and moderate-income neighborhoods, as well as investment department of the Boston Bank maintains support of community development projects and proworking relationships with those banks, monitors their grams. CRA performance, and reports to Bank of Boston's Initially, the Board notes that Bank of Boston's board of directors on performance of each of these subsidiary banks have each received satisfactory rat- banks at least annually. ings from their primary regulators in examinations of The record also shows that the Bank of Boston's their CRA performance. In addition, the record shows subsidiary banks have loan penetrations in all segthat the First National Bank of Boston ("Boston ments of their communities, including low- and mod- Bank"), Applicant's lead bank, has a program in place erate-income neighborhoods. An analysis of the Bosthat contains the necessary elements as outlined above ton Bank's HMDA data indicates that a substantial to encourage effective CRA performance. The pro- percentage of its 1-4 family mortgage loans, home gram has a community outreach component that calls improvement, multi-family dwelling loans, and nonfor ongoing community contact by branch and depart- occupant housing loans were made in low- and modmental staff regarding the needs of the community, erate-income census tracts throughout the area it including low- and moderate-income neighborhoods, serves. With respect to small business lending, the and the products and services that the bank offers to Boston Bank has been an SBA lender for over 20 years meet these needs. To promote community input re- and has more than $275 million outstanding in loans, garding the community's needs and the development including certified SBA loans, to small businesses, of its products and services, the Boston Bank has with substantial amounts originated over the last sev- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1989 eral years. The Bank is also a participant in the Boston Finally, the Board notes that Bank of Boston has in Neighborhood Development Bank, providing nearly place a written corporate policy concerning branch half of the loans originated by that organization. The closings that requires management to notify the public Boston Bank has also participated recently in funding in advance of any proposed closing, and to conduct an cooperative housing in its area, providing nearly $1 analysis of the impact of the branch closing on the million in funds for the rehabilitation of a housing local community and efforts that may be made to cooperative unit in Boston. minimize any adverse impact. In evaluating the Boston Bank's CRA performance, The Board also notes that Bank of Vermont has the Board has considered comments that the Bank received a satisfactory CRA assessment from its pridoes not make loans in the Pittsfield, Massachusetts mary regulator. Protestants have not alleged any defiarea, where 24 percent of the HMDA tracts are ciencies in Bank's CRA record, and the Board expects considered low- and moderate-income areas. An anal- Bank of Boston to continue the satisfactory CRA ysis of HMDA data, however, reveals that Boston performance by Bank after consummation of this Bank is lending in the Pittsfield area and that a proposal. significant percentage of its lending in that community For the foregoing reasons, the Board concludes that is in low- and moderate-income communities. Regard- convenience and needs considerations are consistent ing Bank of Boston's Connecticut subsidiary, an anal- with approval of these applications.9 ysis of HMDA data reveals that the bank, after its The Board has previously determined that the reacquisition by Bank of Boston in 1985, has improved tirement plan consulting services of Future Planning loan service to low- and moderate-income communi- Associates, Inc., are closely related to and a proper ties. Similarly, an analysis of HMDA data indicates incident of banking. 72 FEDERAL RESERVE BULLETIN that Bank of Boston's Rhode Island bank subsidiary is 337 (1986). There is no evidence in the record to lending in low- and moderate-income communities. indicate that approval of this proposal would result in The Board expects that Bank of Boston will continue undue concentration of resources, decreased or unfair its efforts to improve the CRA performance of its competition, conflicts of interests, unsound banking banks in Connecticut and Rhode Island. practices, or other adverse effects on the public inter- The Board has given particular attention to com- est. Accordingly, the Board has determined that the ments that Bank of Boston has a policy to close balance of public interest factors it must consider branches in low- and moderate-income neighborhoods under section 4(c)(8) of the Act is favorable and and to concentrate on higher income areas. The record consistent with approval of the application to acquire shows that the bank subsidiaries of Bank of Boston BankVermont's nonbanking subsidiary. have opened and closed branches in their service areas Accordingly, based upon the foregoing and other in Connecticut, Massachusetts and Rhode Island. facts of record, the Board has determined that the An analysis of the branch closings and openings by applications should be, and hereby are, approved. The Bank of Boston does not reveal a pattern of disinvest- acquisition of BankVermont shall not be consumment in low- and moderate-income areas. The record mated before the thirtieth calendar day following the shows that Bank of Boston maintains many branches effective date of this Order, or later than three months in low- and moderate-income communities throughout after the effective date of this Order, unless such its service areas and in fact has opened branches in period is extended for good cause by the Board or by these areas over the last several years. There is no the Federal Reserve Bank of Boston, pursuant to apparent practice of opening branches solely in higherincome areas and closing branches in lower-income 9. The Board has carefully considered the protestants' requests for areas. The record shows that branches were closed in public meetings or hearings in each of the states in which Bank of high-income areas as well as in low- and moderate- Boston subsidiary banks operates. Although section 3(b) of the Bank income communities, and that the decision to close Holding Company Act does not require a public meeting or formal hearing in this instance, the Board may, in any case, order a public individual branches was made in response to an asmeeting or hearing. 12 C.F.R. § 262.3(e). The Board's Rules of sessment of the actual and expected profitability of Procedure also provide that a public meeting may be held to clarify these units, including the need to provide up-to-date factual issues related to the record of an applicant in meeting the convenience and needs of its community, or to provide an opportunity facilities or to eliminate duplicative facilities resulting for interested persons to provide testimony. 12 C.F.R. § 262.25(d). through Bank of Boston's acquisitions and mergers. In The Board notes that protestants and Applicant have submitted other instances, Bank of Boston's subsidiary banks substantial written material regarding the CRA performance of the institutions in this case and have held a private meeting to discuss sold branches to competing firms within a market, thus these issues. In addition, the state of Vermont has held a public maintaining office area convenience, or reopened the hearing at which several protestants presented their views. In light of these facts, the Board believes that a public meeting or hearing is not branches at new locations in close proximity to the necessary to clarify the record in this case and would not serve any closed branches. useful purpose, and these requests are, therefore, denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 39 delegated authority. The determinations as to Bank of § 1843(c)(8)) to acquire the nonbanking subsidiaries of Boston's nonbanking activities are subject to all of First NH.3 the conditions contained in Regulation Y, including Notice of the applications, affording interested perthose in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. sons an opportunity to submit comments, has been §§ 225.4(d) and 225.23(b)(3), and to the termination of published (53 Federal Register 29,950 (1988)). The the activities of a holding company or any of its time for filing comments has expired, and the Board subsidiaries as the Board finds necessary to assure has considered the applications and all comments compliance with the provisions and purposes of the received in light of the factors set forth in sections 3(c) Act and the Board's regulations and orders issued and 4(c)(8) of the BHC Act. thereunder, or to prevent evasion thereof. The Douglas Amendment to the BHC Act By order of the Board of Governors, effective No- (12 U.S.C. § 1842(d)), prohibits the Board from apvember 30, 1988. proving an application by a bank holding company to acquire control of any bank located outside of the bank Voting for this action: Vice Chairman Johnson and Gover- holding company's principal place of business unless nors Seger, Angell, Heller, Kelley, and La Ware. Absent and the acquisition is "specifically authorized by the statnot voting: Chairman Greenspan. ute laws of the state in which such bank is located, by language to that effect and not merely by implication." JAMES MCAFEE Pursuant to the International Banking Act ("IBA"), Associate Secretary of the Board Applicant's principal place of business with regard to the Douglas Amendment would be New Hampshire.4 Bank of Ireland Hence, Applicant's indirect acquisition of First NH Dublin, Ireland Bank of Maine, as well as First NH's other bank subsidiaries, which are located in New Hampshire, is Order Approving Formation of a Bank Holding not prohibited by the Douglas Amendment or the IBA. Company The Board has previously determined that Maine law authorizes a New Hampshire bank holding company Bank of Ireland, Dublin, Ireland ("Applicant"), has to acquire a Maine bank or bank holding company.5 applied for the Board's approval under section 3(a)(1) Applicant, with total assets of approximately $14.2 of the Bank Holding Company Act (12 U.S.C. billion, is the second largest banking institution in § 1842(a)(1)) ("BHC Act"), to become a bank holding Ireland.6 Applicant has 275 offices in Ireland and company by acquiring all of the outstanding voting shares of First NH Banks, Inc., Manchester, New Hampshire ("First NH"),1 and thereby indirectly to 3. Applicant has applied to acquire: First NH Mortgage Corp, Hooksett, New Hampshire, and thereby engage in mortgage banking acquire First NH's eleven subsidiary banks in Maine activities in New England, including the origination, purchase, sale, and New Hampshire.2 Applicant has also applied and servicing of residential mortgages; First NH Resources, Inc., under section 4(c)(8) of the BHC Act (12 U.S.C. Boston, Massachusetts, and thereby engage in leasing transactions involving equipment valued at more than $1 million; New England Acceptance Corporation, Keene, New Hampshire, and thereby engage in insurance premium financing activities; Vender Funding Co., Inc., New Hyde Park, New York, and thereby engage in leasing equipment valued between $5000 and $250,000; and EG & G Financial Services, Inc., Wellesley, Massachusetts, and thereby engage in equipment leasing. These activities are authorized by sections 1. The proposed acquisition would be effected through two wholly 225.25(b)(1) and (5) of the Board's Regulation Y. 12 C.F.R. owned subsidiaries of Applicant: Bank of Ireland (U.S.) Holdings, §§ 225.25(b)(1) and (5). Inc., Manchester, New Hampshire ("BOI Holdings"); and BOI 4. Section 5(a)(5) of the IBA (12 U.S.C. § 3103(a)(5)) prohibits a Acquisition Corp., a subsidiary of BOI Holdings. BOI Acquisition foreign bank from acquiring voting shares of a bank located outside of Corp. would be merged with and into First NH, which would then its home state if the acquisition would be prohibited under the Douglas become a direct subsidiary of BOI Holdings. Amendment if the foreign bank were a bank holding company whose In connection with this application, Applicant has applied for principal place of business were its home state. Applicant had approval to exercise a warrant issued by First NH to BOI Holdings originally selected New York as its home state under the Board's which would allow BOI Holdings to acquire up to 24.9 percent of the Regulation K (12 C.F.R. § 211.22(b)), but has notified the Board of outstanding shares of First NH. The warrant would only be exercis- its intention to change its home state to New Hampshire pursuant to able under certain conditions indicative of an attempted takeover by a the provision of Regulation K permitting a one-time change of home third party. state (12 C.F.R. § 211.22(c)). 2. First NH's subsidiary banks are: The Bedford Bank, Bedford, Applicant will also retain its New York branch, which was opened The Exeter Banking Company, Exeter, First Capital Bank, N.A., prior to July 27, 1978, pursuant to the grandfather provisions of Concord, First Central Bank, Plymouth, First Cheshire Bank, Keene, section 5(b) of the IBA (12 U.S.C. § 3103(b)), as well as section First NH Bank of Lebanon, Lebanon, First NH-White Mountain 211.22(c)(2) of the Board's Regulation K (12 C.F.R. § 211.22(c)(2)). Bank, North Conway, Granite State National Bank, Somersworth, 5. First NH Banks, Inc., 73 FEDERAL RESERVE BULLETIN 72 (1987). The Merchants National Bank of Manchester, Manchester, and the In addition, the Superintendent of the Maine Bureau of Banking Wolfeboro National Bank, Wolfeboro; all in New Hampshire; and approved Applicant's proposal on September 8, 1988. First NH Bank of Maine, Portland, Maine. 6. Data are as of June 30, 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1989 operates 27 branches and 3 representative offices resources of Applicant and First NH are consistent worldwide including its branch in New York. with approval. First NH is the largest commercial banking organi- In considering the convenience and needs of the zation in New Hampshire, controlling deposits of $1.8 community to be served, the Board has taken into billion, representing 20.9 percent of the total deposits account the record of First NH's banks and Appliin commercial banks in New Hampshire.7 First NH is cants' New York branch under the Community Reinalso the sixteenth largest commercial banking organi- vestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). zation in Maine, controlling deposits of $7.2 million, The CRA requires the federal bank supervisory agenrepresenting less than one percent of the total deposits cies to encourage financial institutions to help meet the in commercial banks in Maine. Applicant does not credit needs of the local communities in which they are compete in New Hampshire or Maine, and the Board chartered consistent with the safe and sound operation concludes that the proposed transaction will not have of such institutions. To accomplish this end, the CRA any adverse effect on competition, or increase the requires the appropriate federal supervisory authority concentration of resources, in any relevant market in to "assess the institution's record of meeting the credit the United States.8 needs of its entire community, including low- and The financial resources of Applicant, First NH, moderate-income neighborhoods, consistent with the and its subsidiary banks are consistent with ap- safe and sound operation of the institution." The proval. Board is required to "take such record into account in The Board also has considered previous violations its evaluation" of applications under section 3 of the by First NH's subsidiary banks of the Currency and BHC Act. Foreign Transactions Reporting Act (31 U.S.C. In this regard, the Board has received com- § 5311 e/ seq.) ("CFTRA"). In connection with earlier ments from the Massachusetts Urban Reinvestment proposals by First NH, the Board reviewed First NH's Advisory Group, Inc., Boston, Massachusetts CFTRA violations that occurred at certain of its NH's ("MURAG"), on behalf of itself, the Franklin Area subsidiary banks.9 In that case, the Board determined Community Land Trust, Franklin, New Hampshire, that corrective actions taken by First NH were satis- and New Hampshire Citizen's Action. MURAG has factory and concluded that overall managerial consid- alleged that a foreign bank is incapable of meeting the erations were consistent with approval. credit and financial needs of the local community, and After consummation of these proposals, additional that the CRA records of First NH and its subsidiaries CFTRA violations were discovered at certain subsid- show little communication, outreach, or assessment of iary banks of First NH. First NH has assured the community credit needs.10 Board that it has implemented CFTRA compliance Initially, the Board notes that First NH's subsidiary procedures at its subsidiary banks sufficient to resolve banks and Applicant's New York branch have rethese reporting violations, and the FDIC has agreed ceived satisfactory CRA assessments from their priwith this assessment. The Board has also consulted mary supervisory agencies. Applicant has also comwith the Department of Treasury regarding these vio- mitted to support fully the CRA and other community lations. activities pursued by First NH's banks. Applicant has indicated that it regards improved Representatives from Applicant and First NH met compliance ratings as a high priority, and that it will with MURAG representatives in connection with this review First NH's continued commitment to compli- application, and although the two parties were not ance matters through the appointment of one of Ap- completely able to resolve their differences, First NH plicant's representatives to the Audit Committee of committed, in a letter to MURAG, to continue to First NH. Applicant also stated that it will review the endeavor to meet the credit and financial needs of its compliance record of First NH through periodic re- local communities. First NH stated that it will conports. On the basis of these factors, and all other facts tinue to participate in housing programs in low- and of record, the Board concludes that the managerial moderate-income neighborhoods, and continue to par- 10. MURAG also requested that the Board hold a public hearing to further assess the facts surrounding Applicant's proposal. Under the 7. State banking data are as of December 31, 1987. Board's rules, the Board may hold a public hearing on an application 8. One of First NH's subsidiary banks, First Cheshire Bank, Keene, to clarify factual issues related to the application and to provide an New Hampshire, has a branch in Hinsdale, New Hampshire, which is opportunity for testimony, if appropriate. 12 U.S.C. § 262.25(d). In part of the Brattleboro, Vermont banking market. Applicant does not light of the fact that the parties in this case have had ample opportunity compete in the Brattleboro market, and the Board concludes that the to present their arguments in writing and to respond to one another's proposed transaction will not have any adverse effect on competition, submissions, the Board has determined that a public meeting would or increase the concentration of resources in that market. serve no useful purpose. Accordingly, the request for a public hearing 9. First NH Banks, Inc., 13 FEDERAL RESERVE BULLETIN 72 (1987). is denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 41 ticipate in below-market-rate loan programs and offer By order of the Board of Governors, effective Nocompetitive mortgage financing products. First NH vember 16, 1988. also will remain active in groups such as the New Hampshire Community Development Finance Author- Voting for this action: Vice Chairman Johnson and Goverity and the Northern New Hampshire Housing Co- nors Seger, Angell, and LaWare. Absent and not voting: operative in an effort to provide more affordable Chairman Greenspan and Governors Heller and Kelley. housing throughout New Hampshire. JAMES MCAFEE Furthermore, First NH will continue its community Associate Secretary of the Board outreach program, and establish a program of periodic meetings with various community groups to continu- The Royal Bank of Scotland Group pic ally assess community credit needs. First NH's CRA Edinburgh, Scotland Officer will also meet periodically, with First NH's marketing committee, as well as senior management of Order Approving Formation of a Bank Holding First NH and the presidents of First NH's subsidiary Company banks to discuss and evaluate marketing plans and CRA performance. As noted, Applicant has commit- The Royal Bank of Scotland Group pic, Edinburgh, ted to support these initiatives. Accordingly, on the Scotland, ("Applicant"), has applied for the Board's basis of the record, including the past CRA perforapproval under sections 3(a)(1) and 4(c)(8) of the Bank mance of First NH and its subsidiary banks and Holding Company Act of 1956, as amended Applicant's New York branch, as well as First NH's (12 U.S.C. §§ 1842(a)(1) and 1843(c)(8)) ("BHC future CRA plans, the Board believes that consider- Act"), to become a bank holding company by acquirations relating to the convenience and needs of the ing all of the voting shares of Citizens Financial communities to be served are consistent with ap- Group, Inc., Providence, Rhode Island ("Citizens"),1 proval. a bank holding company, and thereby indirectly ac- There is no evidence in the record to indicate that quire Citizens Savings Bank, Providence, Rhode Isapproval of this proposal would result in decreased land, Citizens Trust Company, Providence, Rhode competition, in undue concentration of resources, Island, and Fairhaven Savings Bank, Fairhaven, Masunfair competition, conflicts of interests, unsound sachusetts ("Fairhaven Savings").2 banking practices, or other adverse effects on the Applicant has also applied for the Board's approval public interest. Accordingly, the Board has deterunder section 4 of the BHC Act (12 U.S.C. § 1843) to mined that the balance of public interest factors it must acquire Gulf States Mortgage Co., Inc., Atlanta, Georconsider under section 4(c)(8) of the BHC Act is gia, a nonbanking subsidiary of Citizens, and thereby favorable and consistent with approval of the applicaengage in mortgage banking and in the sale of credittions to acquire First NH's nonbanking subsidiaries related insurance. These activities are authorized for and activities. bank holding companies pursuant to the Board's Reg- Based on the foregoing and other facts of record, the ulation Y, 12 U.S.C. §§ 225.25(b)(1) and (8). Board has determined that the applications should be, Notice of the applications, affording interested perand hereby are, approved. The acquisitions shall not sons an opportunity to submit comments, has been be consummated before the thirtieth calendar day duly published (53 Federal Register 29,952 (1988)). following the effective date of this Order, or later than The time for filing comments has expired, and the three months after the effective date of this Order, Board has considered the applications and all comunless such period is extended for good cause by the ments received in light of the factors set forth in Board or by the Federal Reserve Bank of Boston, sections 3(c) and 4(c)(8) of the BHC Act. acting pursuant to delegated authority. The determi- Applicant, with total assets of approximately $40.3 nations as to Applicant's nonbanking activities are billion, is the 7th largest bank in the United Kingdom subject to all of the conditions contained in Reguand the 114th largest commercial bank in the world.3 lation Y, including those in sections 225.4(d) and In the United States, Applicant operates a branch in 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), and to the Board's authority to require such modification or termination of the activities of a holding com- 1. Citizens (U.K.) Limited, Edinburgh, Scotland, a subsidiary of pany or any of its subsidiaries as the Board finds Applicant, has also applied to become a bank holding company and necessary to assure compliance with the provisions will engage in no other activity than to hold the shares of Citizens. and purposes of the Act and the Board's regulations 2. Alternatively, in the event that an entity other than Applicant gains control of Citizens, Applicant has proposed to acquire an option and orders issued thereunder, or to prevent evasion to purchase up to 24.99 percent of the voting shares of Citizens. thereof. 3. All data are as of March 31, 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1989 New York City; an agency in San Francisco; and Applicant and Citizens do not compete in any marrepresentative offices in Chicago, Los Angeles and ket. Consummation of this proposal would not result Houston. Applicant's home state is Rhode Island in any adverse effect upon competition or increase the under the International Banking Act ("IBA") and the concentration of resources in any relevant market. Board's Regulation K.4 Accordingly, the Board concludes that competitive The Douglas Amendment to the BHC Act considerations under the BHC Act are consistent with (12 U.S.C. § 1842(d)) prohibits the Board from ap- approval. proving an application by a bank holding company to The financial and managerial resources of Applicant acquire control of any bank located outside of the bank and Citizens are consistent with approval. Conveholding company's principal place of business unless nience and needs considerations are also consistent the acquisition is "specifically authorized by the stat- with approval. ute laws of the state in which such bank is located, by There is no evidence in the record that approval of language to that effect and not merely by implication." this proposal would result in decreased competition, Pursuant to the IBA, Applicant's principal place of undue concentration of resources, unfair competition, business with regard to the Douglas Amendment conflicts of interests, unsound banking practices, or would be Rhode Island.5 Hence, Applicant's indirect other adverse effects on the public interest. Accordacquisition of Citizens' two Rhode Island bank subsid- ingly, the Board has determined that the balance of iaries is not prohibited by the Douglas Amendment or public interest factors it must consider under section the IBA. Applicant's acquisition of Fairhaven Sav- 4(c)(8) is favorable and consistent with approval of the ings, a Massachusetts bank, is also not prohibited by applications to acquire Citizens' nonbanking subsidthe Douglas Amendment or the IBA. The Board has iary and activities. previously determined that Massachusetts law6 autho- Based on the foregoing and other facts of record, the rizes a Rhode Island bank holding company to acquire Board has determined that the applications should be, a Massachusetts bank or bank holding company.7 and hereby are, approved. The acquisition of Citizens Massachusetts law requires, however, that the acquir- shall not be consummated before the thirtieth calendar ing bank holding company obtain approval for the day following the effective date of this Order, or later acquisition from the Massachusetts Board of Bank than three months after the effective date of this Incorporation. Based on the foregoing, the Board has Order, unless such period is extended for good cause determined that, subject to the Applicant's obtaining by the Board or by the Federal Reserve Bank of approval from the Massachusetts Board, the proposed Boston, acting pursuant to delegated authority. The acquisition is specifically authorized by the statute determinations as to Applicant's nonbanking activities laws of Massachusetts and thus Board approval is not are subject to all of the conditions contained in Reguprohibited by the Douglas Amendment. lation Y, including those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), and to the Board's authority to require such modifica- 4. Applicant originally selected New York as its home state under tion or termination of the activities of a holding comthe Board's Regulation K (12 C.F.R. § 211.22(b)), but in connection pany or any of its subsidiaries as the Board finds with this transaction, changed its home state to Rhode Island pursuant necessary to assure compliance with the provisions to the provision of Regulation K permitting a one-time change of home state (12 C.F.R. § 211.22(c)). Section 211.22(c) provides that a foreign and purposes of the BHC Act and the Board's regulabank may change its home state once if prior notice is filed with the tions and orders issued thereunder, or to prevent Board and if domestic branches established and investments in banks evasion thereof. acquired in reliance on its original home state selection are conformed to those that would have been permissible had the new home state By order of the Board of Governors, effective Nobeen selected as its home state originally. Royal may retain its New vember 7, 1988. York branch, however, because it was acquired prior to July 27, 1978; therefore the branch is grandfathered and may be retained under section 5(b) of the International Banking Act (12 U.S.C. § 3103(b)). 5. Section 5(a)(5) of the IBA (12 U.S.C. § 3103(a)(5)) prohibits a foreign bank from acquiring voting shares of a bank located outside of Voting for this action: Chairman Greenspan and Governors its home state if the acquisition would be prohibited under the Douglas Seger, Angell, Heller, Kelley, and LaWare. Absent and not Amendment and if the foreign bank were a bank holding company voting: Governor Johnson. whose principal place of business were its home state. As previously noted, Royal's home state pursuant to Regulation K is Rhode Island. 6. Mass. Ann. Laws Ch. 167A, § 2 (1987). 7. Citizens Financial Group, Inc., 74 FEDERAL RESERVE BULLETIN JAMES MCAFEE 496 (1988); and Fleet Financial Group, Inc., 70 FEDERAL RESERVE Associate Secretary of the Board BULLETIN 834 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 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) date FirstBank Holding Company of First Bank of Southmoor Park, N.A., November 14, 1988 Colorado, Denver, Colorado Lake wood, Colorado First Bank at Buckley/Quincy, N.A., Aurora, Colorado First Bank of Table Mesa, N.A., Boulder, Colorado FirstBank at 30th/Arapahoe, N.A., Boulder, Colorado FirstBank at Chambers/Mississippi, N.A., Aurora, Colorado FirstBank Holding Company of FirstBank of West Vail, November 18, 1988 Colorado, Vail, Colorado Lakewood, Colorado Section 4 Nonbanking Effective Applicant Activity/Company date First Chicago Corporation, Midwest Mortgage Services, Inc., November 23, 1988 Chicago, Illinois Oakbrook Terrace, Illinois Norwest Corporation, Hopkins Insurance Agency, Inc., November 18, 1988 Minneapolis, Minnesota Des Moines, Iowa SunTrust Banks, Inc., BHC Holding, Inc., November 1, 1988 Atlanta, Georgia Philadelphia, Pennsylvania The First National Bank of Chicago, Midwest Mortgage Services, Inc., November 16, 1988 Chicago, Illinois Oakbrook Terrace, Illinois Sections 3 and 4 Effective Applicant Bank(s) date Commerce Bancshares, Inc., Midwest Financial Group, Inc., November 23, 1988 Kansas City, Missouri Peoria, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 1989 Bank Merger Act Effective Applicant Bank(s) date First Interstate Bank of California, Point West Bank, November 23, 1988 Los Angeles, California Sacramento, California By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant(s) Bank(s) Bank date Adrian Bancshares, Inc., Adrian Bank, Kansas City October 21, 1988 Adrian, Missouri Adrian, Missouri American Bankshares, Inc., Cobb American Bank and Trust Atlanta November 14, 1988 Marietta, Georgia Company, Marietta, Georgia Atcorp, Inc., Atco National Bank, Philadelphia October 31, 1988 Atco, New Jersey Atco, New Jersey Bancorp II, Inc., The Citizens Bank of Pilot Kansas City October 28, 1988 Kansas City, Kansas Grove, Pilot Grove, Missouri Banterra Corp., The Hamilton County Bank, St. Louis November 16, 1988 Eldorado, Illinois McLeansboro, Illinois Berger Bancorp, Inc., Farmers and Merchants Bank of St. Louis November 8, 1988 Berger, Missouri Berger, Berger, Missouri B.H.C., Inc., Bostwick Banking Company, Atlanta October 31, 1988 Arlington, Georgia Arlington, Georgia Blue Ridge Bankshares, Inc., The Page Valley National Bank Richmond November 7, 1988 Luray, Virginia of Luray, Luray, Virginia Blunt Bank Holding Company, State Bank of Blunt, S.D., Minneapolis November 23, 1988 Blunt, South Dakota Blunt, South Dakota Buena Vista Bancorp, Inc., Buena Vista National Bank, St. Louis November 4, 1988 Chester, Illinois Chester, Illinois Central Bancompany, Centerre Bank of Branson, St. Louis November 7, 1988 Jefferson City, Missouri Branson, Missouri Citizens Independent Bancorp, The Citizens Bank of Logan, Cleveland October 31, 1988 Inc., Logan, Ohio Logan, Ohio CNB Bancorp, Inc., City National Bank and Trust New York November 9, 1988 Gloversville, New York Company of Gloversville, Gloversville, New York Commerce Bancorp, Inc., Citizens State Bank of New Philadelphia November 4, 1988 Cherry Hill, New Jersey Jersey, Forked River, New Jersey Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 45 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date Dickinson Financial Corporation, Citizens State Bank, Kansas City October 28, 1988 Chillicothe, Missouri Mary ville, Missouri Community Bank, Chillicothe, Missouri First National Bank of Kirksville, Kirksville, Missouri Fort Knox National Bank, Fort Knox, Kentucky Citizens Bank, Shelby ville, Missouri Duke Financial Group, Inc., Citizens State Bank of Minneapolis October 26, 1988 St. Paul, Minnesota Montgomery, Montgomery, Minnesota Dulaney Bancorp, Inc., The Dulaney National Bank of Chicago November 23, 1988 Marshall, Illinois Marshall, Marshall, Illinois Edgeley Bancorporation, Inc., The Security National Bank of Minneapolis November 16, 1988 Edgeley, North Dakota Edgeley, Edgeley, North Dakota 1867 Western Financial Bank of Stockton, San Francisco November 9, 1988 Corporation, Stockton, California Stockton, California Empire Bank Corp., Empire Banking Company, Atlanta November 2, 1988 Homerville, Georgia Homerville, Georgia Equity Financial Ventures, Inc., The Village Bank, Atlanta November 18, 1988 Hialeah, Florida Hialeah, Florida Financial Institutions Holding The Bank of Bowie, Richmond November 23, 1988 Corporation, Bowie, Maryland Riverdale, Maryland First Bancorporation of Akron, The First National Bank in Cleveland October 28, 1988 Akron, Ohio Massillon, Massillon, Ohio First Commercial Corporation, Benton State Bankshares, Inc., St. Louis November 17, 1988 Little Rock, Arkansas Benton, Arkansas First Commercial Corporation, The Citizens Bank, St. Louis November 4, 1988 Little Rock, Arkansas England, Arkansas FirstMorrill Co., Morrill Insurance Services, Inc., Kansas City November 8, 1988 Omaha, Nebraska Morrill, Nebraska Ansley Insurance Agency, Ansley, Nebraska First of America Bank Quad Cities First Company, Chicago November 22, 1988 Corporation, Rock Island, Illinois Kalamazoo, Michigan First of America Quad Cities First Company, Chicago November 22, 1988 Bancorporation-Illinois, Inc., Rock Island, Illinois Libertyville, Illinois FirstPerryton Bancorp, Inc., The First National Bank of Dallas November 10, 1988 Perry ton, Texas Hereford, Hereford, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1989 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date First Shares, Inc., The First National Bank of Chicago October 31, 1988 Platteville, Wisconsin Platteville, Platteville, Wisconsin Firstshares of Texas, Inc., The First National Bank of Dallas November 8, 1988 Marshall, Texas Marshall, Marshall, Texas First Southern Bancorp, Inc., Peoples Bank of Paint Lick, Cleveland November 2, 1988 Stanford, Kentucky Paint Lick, Kentucky First State Bancorporation, First State Bank of Taos, Kansas City November 3, 1988 Taos, New Mexico Taos, New Mexico Livingston & Company New Mexico Bank Corporation, Kansas City November 3, 1988 Southwest, L.P., Inc., Chicago, Illinois Albuquerque, New Mexico Livingston Southwest First State Bancorporation, Corporation, Taos, New Mexico Chicago, Illinois Florida Security Holding First American Bank of Orange Atlanta November 4, 1988 Corporation, County, Maitland, Florida Maitland, Florida F.N.B. Corporation, Farmers National Bank of Cleveland November 4, 1988 Hermitage, Pennsylvania Emlenton, Emlenton, Pennsylvania FNB, Inc., Colorado National Bank-Greeley, Kansas City November 10, 1988 Denver, Colorado Greeley, Colorado FNW Bancorp, Inc., The Heritage Group, Chicago November 9, 1988 Elgin, Illinois Inc., Woodridge, Illinois Ford Bank Group, Inc., Lubbock Bancorporation, Inc., Dallas October 19, 1988 Lubbock, Texas Lubbock, Texas Fourth Financial Corporation, IV Topeka Acquisition, Inc., Kansas City November 10, 1988 Wichita, Kansas Wichita, Kansas Fairlawn Plaza Investments, Inc., Topeka, Kansas Gore-Bronson Bancorp, Inc., The Palwaukee Bank, Chicago November 2, 1988 Northbrook, Illinois Prospect Heights, Illinois HMC Holding Company, Gary State Bank, Minneapolis November 4, 1988 Sioux Falls, South Dakota Gary, South Dakota Indiana Bancshares, Inc., Hoosier Bancshares, Inc., Chicago November 16, 1988 Greenwood, Indiana Bloomington, Indiana Jamestown Bancorp, Inc., Bank of Jamestown, St. Louis November 22, 1988 Jamestown, Kentucky Jamestown, Kentucky Main Street Banks Incorporated, The Bank of Covington, Atlanta October 19, 1988 Covington, Georgia Covington, Georgia Marshall & Ilsley Corporation, Scottscom Bancorp, Inc., Chicago November 16, 1988 Milwaukee, Wisconsin Scottsdale, Arizona Merchants National Corporation, BSB Bancorp, Chicago October 31, 1988 Indianapolis, Indiana Batesville, Indiana Merchants National Corporation, Riley Company, Inc., Chicago October 24, 1988 Indianapolis, Indiana East Chicago, Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments A1 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date Meredosia Bancorporation, Inc., Mount Zion State Bank and St. Louis November 4, 1988 Springfield, Illinois Trust, Mount Zion, Illinois M & M Bancorp, Inc., M & M Financial Corporation, Atlanta November 10, 1988 Ellisville, Mississippi Laurel, Mississippi Merchants and Manufacturers Bank of Ellisville, Ellisville, Mississippi M.O. Packard Investment Kolob Investment Company, San Francisco November 4, 1988 Company, Springville, Utah Springville, Utah Muncy Bank Financial, Inc., The Muncy Bank and Trust Philadelphia November 8, 1988 Muncy, Pennsylvania Company, Muncy, Pennsylvania National Banc of Commerce GuarantyShares of West Virginia, Richmond November 22, 1988 Company, Inc., Charleston, West Virginia Huntington, West Virginia National Banc of Commerce The Bank of Man, Richmond November 22, 1988 Company, Man, West Virginia Charleston, West Virginia NBCC, Inc., The Guaranty National Bank of Richmond November 22, 1988 Charleston, West Virginia Huntington, Huntington, West Virginia New Mexico Bank Corporation, Banquest National Bank of Kansas City November 3, 1988 Inc., Albuquerque, Albuquerque, New Mexico Albuquerque, New Mexico North Shore Financial Airport State Bank, Minneapolis November 23, 1988 Corporation, Duluth, Minnesota Duluth, Minnesota Parker Bancshares, Inc., Weatherford National Bank, Dallas November 23, 1988 Dover, Delaware Weatherford, Texas P.C.B. Bancorp, Inc., Pinellas Community Bank, Atlanta November 4, 1988 Largo, Florida Largo, Florida Peoples Bancorp Inc., Heartland BancCorp, Cleveland October 28, 1988 Marietta, Ohio Grove City, Ohio Peoples Bancshares, Inc., The Peoples Bank, Atlanta October 21, 1988 Elba, Alabama Elba, Alabama Peoples Heritage Financial Oxford Bank and Trust, Boston November 17, 1988 Group, Inc., Oxford, Maine Portland, Maine Pioneer Bancorp, Inc., Pioneer Bank & Trust Company, Chicago November 2, 1988 Chicago, Illinois Chicago, Illinois PNC Financial Corp, The Clayton Bank and Trust Cleveland November 7, 1988 Pittsburgh, Pennsylvania Company, Clayton, Delaware Port St. Lucie National Bank Port St. Lucie National Bank, Atlanta October 28, 1988 Holding Corp., Port St. Lucie, Florida Port St. Lucie, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • January 1989 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date Premier Bancshares of Texas, Bank of Kerrville, Dallas November 17, 1988 Inc., Kerrville, Texas Victoria, Texas Raymond Bancorp, Inc., S.B.V. Banc Shares, Inc., St. Louis October 21, 1988 Raymond, Illinois Virden, Illinois Raymond Acquisition Corporation, Raymond, Illinois Redwood Empire Bancorp, National Bank of the Redwoods, San Francisco November 4, 1988 Santa Rosa, California Santa Rosa, California Republic Bancorp, Inc., Republic Bank-Oakland, Chicago November 9, 1988 Ann Arbor, Michigan Bloomfield Hills, Michigan Sebastian Bankshares, Inc., Citizens Bank of Lavaca, St. Louis November 10, 1988 Barling, Arkansas Lavaca, Arkansas Seligman Bancshares, Inc., Bank of Seligman, St. Louis November 7, 1988 Seligman, Missouri Seligman, Missouri Sierra Petroleum Co., Inc., Graham-Michaelis Financial Kansas City October 18, 1988 Wichita, Kansas Corporation, Wichita, Kansas NBW Financial Corporation, Wichita, Kansas SouthTrust Corporation, Meigs County Bancshares, Inc., Atlanta November 22, 1988 Birmingham, Alabama Decatur, Tennessee Southwest Missouri Bank of Miami, Kansas City November 15, 1988 Bancorporation, Inc., Miami, Oklahoma Carthage, Missouri Terrapin Bancorp, Inc., The Elizabeth State Bank, Chicago November 14, 1988 Elizabeth, Illinois Elizabeth, Illinois The Bancorp of Tomah, Inc., First Bank of Tomah, Chicago October 28, 1988 Tomah, Wisconsin Tomah, Wisconsin The Bank of New Mexico Western Bank of Springer, Kansas City November 18, 1988 Holding Company, Springer, New Mexico Albuquerque, New Mexico The Citizens and Southern Heritage Trust, Atlanta November 23, 1988 Corporation, Conyers, Georgia Atlanta, Georgia Citizens and Southern Georgia Corporation, Atlanta, Georgia Thompson Financial, Ltd., Texas Security Bancshares, Inc., Dallas November 3, 1988 Fort Worth, Texas Fort Worth, Texas Trenton Trust Bancshares, Inc., Trenton Trust Company, Kansas City October 28, 1988 Trenton, Missouri Trenton, Missouri Tritten Bancshares, Inc., Bank of Plato, St. Louis October 25, 1988 St. Robert, Missouri Plato, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 49 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date U.S. Bancorp, Bank of Loleta, San Francisco November 7, 1988 Portland, Oregon Eureka, California Western Independent Bancshares, Inc., Auburn, Washington Vineyard National Bancorp, Vineyard National Bank, San Francisco November 14, 1988 Rancho Cucamonga, California Rancho Cucamonga, California Weslaco Bancshares, Inc., City National Bank, Dallas October 31, 1988 Weslaco, Texas Weslaco, Texas Western Springs Bancorp, Inc., Continental Illinois Bank of Chicago October 28, 1988 Chicago, Illinois Western Springs, National Association, Western Springs, Illinois WIN Bancorp, Inc., Winchester National Bank, St. Louis November 7, 1988 Winchester, Illinois Winchester, Illinois Worthington Bancshares, Inc., Worthington State Bank, St. Louis October 31, 1988 Indianapolis, Indiana Worthington, Indiana Wyandotte Ban Corporation, The Edwardsville Bank, Kansas City October 28, 1988 Kansas City, Kansas Edwards ville, Kansas Section 4 Nonbanking Reserve Effective Applicant Activity/ Company Bank date First Bank System, Inc., Columbia Savings, Minneapolis October 31, 1988 Minneapolis, Minnesota Denver, Colorado First Bank System, Inc., Interstate Lending Corporation, Minneapolis November 4, 1988 Minneapolis, Minnesota Englewood, Colorado Fleet/Norstar Financial Group, Brokers Securities, Inc., Boston November 14, 1988 Inc., Norfolk, Virginia Providence, Rhode Island F.N.B. Corporation, Household Bank, FSB, Cleveland November 16, 1988 Hermitage, Pennsylvania Columbus, Ohio Montana Bancsystem, Inc., Mr. Richard Mihalovich, d.b.a. Minneapolis November 1, 1988 Billings, Montana The Insurance Center, Roundup, Montana U.S. Bancorp, State Financial Services, Inc., San Francisco November 14, 1988 Portland, Oregon Bend, Oregon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • January 1989 Sections 3 and 4 Nonbanking Reserve Effective Applicant Activity/ Company Bank date Big Sioux Financial, Inc., The Farmers State Bank of Minneapolis October 21, 1988 Estelline, South Dakota Estelline, Estelline, South Dakota Farmers State Bank Agency, Estelline, South Dakota Fleet/Norstar Financial Group, Indian Head Banks Inc., Boston November 18, 1988 Inc., Nashua, New Hampshire Providence, Rhode Island KeyCorp, First Wyoming Bancorporation, New York November 15, 1988 Albany, New York Cheyenne, Wyoming Key Bancshares of Wyoming First Wyoming Bancorporation, New York November 15, 1988 Inc., Cheyenne, Wyoming Cheyenne, Wyoming Marietta Bancshares, Inc., State Bank of Marietta, Minneapolis November 3, 1988 Marietta, Minnesota Marietta, Minnesota Marietta Insurance Agency, Marietta, Minnesota 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 Central Florida Banc Shares, First American Bank of Orange Atlanta November 4, 1988 Inc., County, Maitland, Florida Maitland, Florida First City Bank of Dallas, First City Bank of Lewisville, Dallas November 22, 1988 Dallas, Texas Lewisville, Texas First City Bank of Piano, N.A., Piano, Texas Scottscom Bank, Thunderbird Bank, San Francisco November 16, 1988 Scottsdale, Arizona Phoenix, Arizona The State Savings Bank of South First of America Bank-Ann Chicago October 20, 1988 Lyon, Arbor, South Lyon, Michigan Ann Arbor, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 51 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. MCorp v. Board of Governors, No. CA3-88-2693-F Irving Bank Corporation v. Board of Governors, No. (N.D. Tex., filed October 28, 1988). 88-1176 (D.C. Cir., filed March 1, 1988). White v. Board of Governors, No. CU-S-88-623-RDF National Association of Casualty and Surety Agents, (D. Nev., filed July 29, 1988). et al., v. Board of Governors, Nos. 87-1644, 87- VanDyke v. Board of Governors, No. 88-5280 (8th 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, Whitney v. United States, et al., No. CA3-88-1596-H March 30, April 7, 1988). (N.D. Tex., filed July 7, 1988). Teichgraeber v. Board of Governors, No. 87-2505-0 Baugh v. Board of Governors, No. C88-3037 (N.D. (D. Kan., filed Oct. 16, 1987). Iowa, filed April 8, 1988). Northeast Bancorp v. Board of Governors, No. 87- Bonilla v. Board of Governors, No. 88-1464 (7th Cir., 1365 (D.C. Cir., filed July 31, 1987). filed March 11, 1988). National Association of Casualty & Insurance Agents Cohen v. Board of Governors, No. 88-1061 (D.N.J., v. Board of Governors, Nos. 87-1354,87-1355 (D.C. filed March 7, 1988). Cir., filed July 29, 1987). Stoddard v. Board of Governors, No. 88-1148 (D.C. The Chase Manhattan Corporation v. Board of Gov- Cir., filed February 25, 1988). ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987). Independent Insurance Agents of America, Inc. v. Lewis v. Board of Governors, Nos. 87-3455, 87-3545 Board of Governors, No. 87-1686 (D.C. Cir., filed (11th Cir., filed June 25, Aug. 3, 1987). November 19, 1987). CBC, Inc. v. Board of Governors, No. 86-1001 (10th Cir., filed Jan. 2, 1986). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks in New York City A21 Branches and agencies of foreign banks A22 Gross demand deposits—individuals, MONEY STOCK AND BANK CREDIT partnerships, and corporations A3 Reserves, money stock, liquid assets, and debt measures A4 Reserves of depository institutions, Reserve FINANCIAL MARKETS Bank credit A23 Commercial paper and bankers dollar A5 Reserves and borrowings—Depository acceptances outstanding institutions A23 Prime rate charged by banks on short-term A6 Selected borrowings in immediately available business loans funds—Large member banks A24 Interest rates—money and capital markets A25 Stock market—Selected statistics A26 Selected financial institutions—Selected assets POLICY INSTRUMENTS and liabilities A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions FEDERAL FINANCE A9 Federal Reserve open market transactions A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays FEDERAL RESERVE BANKS A30 Federal debt subject to statutory limitation A30 Gross public debt of U.S. Treasury—Types 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 A3 3 Federal and federally sponsored credit agencies—Debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock, liquid assets, and debt measures SECURITIES MARKETS AND A15 Bank debits and deposit turnover CORPORATE FINANCE A16 Loans and securities—All commercial banks A34 New security issues—State and local governments and corporations 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 A35 Total nonfarm business expenditures on new series plant and equipment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1989 A36 Domestic finance companies—Assets and A56 U.S. reserve assets liabilities and business credit A56 Foreign official assets held at Federal Reserve Banks A57 Foreign branches of U.S. banks—Balance REAL ESTATE sheet data A59 Selected U.S. liabilities to foreign official A37 Mortgage markets institutions A38 Mortgage debt outstanding REPORTED BY BANKS IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A59 Liabilities to and claims on foreigners A39 Total outstanding and net change A60 Liabilities to foreigners A40 Terms A62 Banks' own claims on foreigners A63 Banks' own and domestic customers' claims on foreigners FLOW OF FUNDS A63 Banks' own claims on unaffiliated foreigners A64 Claims on foreign countries—Combined A41 Funds raised in U.S. credit markets domestic offices and foreign branches A43 Direct and indirect sources of funds to credit markets A44 Summary of credit market debt oustanding REPORTED BY NONBANKING BUSINESS A45 Summary of credit market claims, by holder ENTERPRISES IN THE UNITED STATES Domestic Nonfinancial Statistics A65 Liabilities to unaffiliated foreigners A66 Claims on unaffiliated foreigners SELECTED MEASURES A46 Nonfinancial business activity—Selected SECURITIES HOLDINGS AND TRANSACTIONS measures A67 Foreign transactions in securities A47 Labor force, employment, and unemployment A68 Marketable U.S. Treasury bonds and notes— A48 Output, capacity, and capacity utilization Foreign transactions A49 Industrial production—Indexes and gross value A51 Housing and construction A52 Consumer and producer prices A53 Gross national product and income INTEREST AND EXCHANGE RATES A54 Personal income and saving A69 Discount rates of foreign central banks A69 Foreign short-term interest rates International Statistics A70 Foreign exchange rates SUMMARY STATISTICS A71 Guide to Tabular Presentation, A55 U.S. international transactions—Summary Statistical Releases, and Special A56 U.S. foreign trade Tables 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' June July Aug.' Sept.' Oct. Reserves of depository institutions 1 Total 2.5 3.5 5.8 4.3 5.4 11.9 -2.9 -1.9 -.7 2 Required 1.4 2.9 7.2 4.0 8.6 9.7 -1.9 -2.3 -2.6 i Nonborrowed 2.4 1.5 -6.5 2.5 -4.8 5.1 1.1 6.4 10.4 4 Monetary base 7.8 8.3 7.6 6.6 6.2 10.4 2.5 5.5 5.7 Concepts of money, liquid assets, and debt4 5 Ml 3.9 3.8 6.3 5.2 9.8 9.0r .3 -.2 1.7 6 M2 3.9 6.8 7.7 3.6 5.7 3.7 2.3 .9 1.2 7 M3 5.5 7.r 7.7' 5.7 7.8r 7.0' 3.8 1.5 4.7 8 L 5.8 6.9r 9.0' 7.0 4.4r 11.4' 4.9 1.2 n.a. 9 Debt 10.0 8.0 8.5 8.2 8.2r 7.7' 8.6 8.2 n.a. Nontrgnsaction components 10 In M2y 3.9 7.8 8.2 3.1 4.3 1.8' 3.1 1.3 1.0 11 In M3 only6 11.9 8.2' 7.4' 13.6 15.7' 19.6' 9.2 3.8 17.9 Time and savings deposits Commercial banks 1122 Savings .7 6.3 11.0 8.8 12.9 9.6 7.6 -2.5 -2.5 13 Small-denomination time 14.8 13.7 11.8 10.2 6.2 8.8 12.6 20.0 23.4 14 Large-denomination time9, 10.5 3.4 6.7 21.5 23. V 25.5' 21.1 17.6 15.0 Thrift institutions 15 Savings -3.8 -2.4 6.6 5.7 9.0 7.0' 5.4 -2.0 -8.9 16 Small-denomination time 16.0 21.3 14.0 4.5 1.7 1.3 6.1 10.1 9.0 17 Large-denomination time9 22.2 13.7 9.3 4.5 -.7' 3.6' -.7 24.3 15.4 Debt components4 18 Federal 7.6 8.0 8.3 7.0 5.9 5.4 9.9 11.9 n.a. 19 Nonfederal 10.7 8.0 8.6 8.5 8.5' 8.2 7.0 n.a. 20 Total loans and securities at commercial banks" 5.2r 5.3' 11. r 7.3 10.3 6.3 7.2 -.7' 7.1 1. Unless otherwise noted, rates of change are calculated from average institutions and money market funds. Also excludes all balances held by U.S. amounts outstanding in preceding month or quarter. commercial banks, money market funds (general purpose and broker-dealer), 2. Figures incorporate adjustments for discontinuities associated with the foreign governments and commercial banks, and the U.S. government. implementation of the Monetary Control Act and other regulatory changes to M3: M2 plus large-denomination time deposits and term RP liabilities (in reserve requirements. To adjust for discontinuities due to changes in reserve amounts of $100,000 or more) issued by commercial banks and thrift institutions, requirements on reservable nondeposit liabilities, the sum of such required term Eurodollars held by U.S. residents at foreign branches of U.S. banks reserves is subtracted from the actual series. Similarly, in adjusting for discon- worldwide and at all banking offices in the United Kingdom and Canada, and tinuities in the monetary base, required clearing balances and adjustments to balances in both taxable and tax-exempt, institution-only money market mutual compensate for float also are subtracted from the actual series. funds. Excludes amounts held by depository institutions, the U.S. government, 3. The monetary base not adjusted for discontinuities consists of total money market funds, and foreign banks and official institutions. Also subtracted reserves plus required clearing balances and adjustments to compensate for float is the estimated amount of overnight RPs and Eurodollars held by institution-only at Federal Reserve Banks plus the currency component of the money stock less money market mutual funds. the amount of vault cash holdings of thrift institutions that is included in the L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term currency component of the money stock plus, for institutions not having required Treasury securities, commercial paper and bankers acceptances, net of money reserve balances, the excess of current vault cash over the amount applied to market mutual fund holdings of these assets. satisfy current reserve requirements. After the introduction of contemporaneous Debt: Debt of domestic nonfinancial sectors consists of outstanding credit reserve requirements (CRR), currency and vault cash figures are measured over market debt of the U.S. government, state and local governments, and private the weekly computation period ending Monday. nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Before CRR, all components of the monetary base other than excess reserves sumer credit (including bank loans), other bank loans, commercial paper, bankers are seasonally adjusted as a whole, rather than by component, and excess acceptances, and other debt instruments. The source of data on domestic reserves are added on a not seasonally adjusted basis. After CRR, the seasonally nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt adjusted series consists of seasonally adjusted total reserves, which include data are based on monthly averages. Growth rates for debt reflect adjustments for excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted discontinuities over time in the levels of debt presented in other tables. currency component of the money stock plus the remaining items seasonally 5. Sum of overnight RPs and Eurodollars, money market fund balances adjusted as a whole. (general purpose and broker-dealer), MMDAs, and savings and small time 4. Composition of the money stock measures and debt is as follows: deposits less the estimated amount of demand deposits and vault cash held by Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults thrift institutions to service their time and savings deposit liabilities. of depository institutions; (2) travelers checks of nonbank issuers; (3) demand 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, deposits at all commercial banks other than those due to depository institutions, money market fund balances (institution-only), less a consolidation adjustment the U.S. government, and foreign banks and official institutions less cash items in that represents the estimated amount of overnight RPs and Eurodollars held by the process of collection and Federal Reserve float; and (4) other checkable institution-only money market mutual funds. dep9sits (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 • January 1989 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 Factors 1988 Aug. Sept. Oct. Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 251,530 256,979 255,178 254,921 258,506 259,277 258,674 255,459 255,563 254,497 2 U.S. government securities1 223,140 226,629 225,724 225,024 228,026 227,983 227,163 226,071 225,964 225,397 3 Bought outright 223,140 224,058 225,210 224,040 223,886 224,405 223,243 226,071 225,964 225,094 4 Held under repurchase agreements 0 2,571 514 984 4,140 3,578 3,920 0 0 303 5 Federal agency obligations 7,194 8,525 7,482 7,495 8,887 9,715 9,495 7,190 7,186 7,198 6 Bought outright 7,194 7,191 7,160 7.191 7,191 7,191 7,191 7,190 7,186 7,116 7 Held under repurchase agreements 0 1,334 322 304 1,696 2,524 2,304 0 0 82 8 Acceptances 0 0 0 0 0 0 0 0 0 0 9 Loans 3,267 2,722 2,337 3,031 2,911 2,257 2,621 2,124 2,283 2,359 10 Float 595 1,154 1,219 1.192 990 909 1,322 1,235 1,721 828 11 Other Federal Reserve assets 17,334 17,951 18,416 18,180 17,692 18,413 18,073 18,839 18,409 18,715 12 Gold stock2 11,062 11,062 11,064 11,062 11,062 11,063 11,063 11,066 11,063 11,064 13 Special drawing rights certificate account.. 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 14 Treasury currency outstanding 18,555 18,606 18,667 18,597 18,611 18,625 18,639 18,653 18,667 18,681 ABSORBING RESERVE FUNDS 15 Currency in circulation 235,916 236,382 237,156 237,454 236,170 235,096 235,856 237,607 237,898 236,965 16 Treasury cash holdings 396 392 398 389 389 389 391 405 401 3% Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 3,153 7,684 5,954 3,986 8,971 12,209 9,890 5,211 5,470 5,623 18 Foreign 227 236 240 221 231 235 268 237 236 238 19 Service-related balances and adjustments 1,899 1,848 1,848 1,786 1,813 1,859 1,815 1,932 1,982 1,915 20 Other 377 404 352 332 467 440 344 307 314 389 21 Other Federal Reserve liabilities and capital 7,329 7,632 7,617 7,589 7,716 7,674 7,802 7,561 7,567 7,524 22 Reserve balances with Federal Reserve Banks3 36,868 37,087 36,361 37,841 37,441 36,079 37,028 36,935 36,443 36,210 End-of-month figures Wednesday figures 1988 1988 Aug. Sept. Oct. Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 251,520 261,855 257,722 256,053 274,670 261,227 251,579 256,648 257,243 253,025 24 U.S. government securities1 222,795 229,181 225,638 225,593 237,589 228,858 219,636 225,669 226,242 224,263 25 Bought outright 222,795 223,573 223,041 223,556 224,051 226,015 219,636 225,669 226,242 224,263 26 Held under repurchase agreements 0 5,608 2,597 2,037 13,538 2,843 0 0 0 0 27 Federal agency obligations 7,191 11,073 8,767 7,842 10,730 10,285 7,191 7,186 7,186 7,116 28 Bought outright 7,191 7,191 7,116 7,191 7,191 7,191 7,191 7,186 7,186 7,116 29 Held under repurchase agreements.... 0 3,882 1,651 651 3,539 3,094 0 0 0 0 30 Acceptances 0 0 0 0 0 0 0 0 0 0 31 Loans 3,237 2,154 2,275 2,907 7,373 2,664 5,173 2,279 3,546 1,980 32 Float 659 1,199 1,690 1,335 848 946 1,557 2,992 1,855 1,005 3 3 3 4 Go O ld t h s e t r o c F k e 2 d eral Reserve assets 1 1 1 7 , , 0 6 6 3 1 8 1 11 8 , , 0 2 6 4 2 8 1 1 1 9 , , 0 3 6 5 2 2 1 11 8 , , 0 3 6 7 2 6 1 11 8 , , 0 1 6 3 3 0 1 1 8 1 , , 4 0 7 6 4 3 1 1 8 1 , ,0 0 6 2 4 2 1 1 8 1 , , 5 0 2 6 2 7 1 1 1 8 , , 0 4 6 1 3 4 1 1 8 1 , ,0 6 6 6 3 1 35 Special drawing rights certificate account.. 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 36 Treasury currency outstanding 18,581 18,637 18,693 18,609 18,623 18,637 18,651 18,665 18,679 18,693 ABSORBING RESERVE FUNDS 37 Currency in circulation 235,881 235,527 237,094 237,106 235,756 235,248 236,653 238,328 237,648 236,948 38 Treasury cash holdings 398 389 397 389 389 389 402 402 3% 394 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 4,390 13,023 6,151 4,846 19,014 14,694 3,917 4,842 5,532 5,690 40 Foreign 231 338 301 198 212 331 174 273 239 226 41 Service-related balances and adjustments 1,634 1,605 1,662 1,640 1,640 1,603 1,605 1,628 1,629 1,662 42 Other 392 358 348 339 344 371 315 308 337 600 43 Other Federal Reserve liabilities and capital 7,020 7,899 8,463 7,447 7,888 7,509 7,336 7,405 7,330 7,319 44 Reserve balances with Federal Reserve Banks 36,234 37,433 38,079 38,777 44,131 35,799 35,909 38,212 38,892 34,959 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 averages* Reserve classification 1985 1988 Dec. Dec. Apr. May June July Aug. Sept. 1 Reserve balances with Reserve Banks2 27,620 37,360 37,673 36,027 38,429 36,509 37,907 37,992 36,911 37,213 2 Total vault cash3 22,953 24,079 26,155 25,926 25,200 25,873 25,717 26,479 26,895 26,726 3 Vault* 20,522 22,199 24,449 24,049 23,636 24,172 24,084 24,763 25,054 24,940 4 Surplus 2,431 1,879 1,706 1,877 1,564 1,700 1,632 1,715 1,841 1,786 5 Total reserves 48,142 59,560 62,123 60,076 62,064 60,681 61,991 62,756 61,965 62,153 6 Required reserves 47,085 58,191 61,094 59,147 61,205 59,641 61,103 61,749 61,012 61,181 7 Excess reserve balances at Reserve Banks' 1,058 1,369 1,029 929 859 1,040 888 1,007 953 972 8 Total borrowings at Reserve Banks 1,318 827 777 1,752 2,993 2,578 3,083 3,440 3,241 2,839 9 Seasonal borrowings at Reserve Banks .. 56 38 93 119 146 246 311 376 423 421 10 Extended credit at Reserve Banks8 499 303 483 1,478 2,624 2,107 2,554 2,538 2,653 2,059 Biweekly averages of daily figures for weeks ending 1988 July 13 July 27 Aug. 10 Aug. 24 Sept. 7 Sept. 21 Oct. 5r Oct. 19 Nov. 2 11 Reserve balances with Reserve Banks2 37,260 38,831 37,399 37,343 36,422' 37,273 37,625 36,527 36,678 36,090 12 Total vault cash3 26,237 26,270 26,647 26,571 27,400 26,351 26,787 26,924 27,612 26,825 13 Vault4., 24,492 24,629 24,889 24,762 25,513 24,555 25,054 25,063 25,806 25,310 14 Surplus5. 1,745 1,641 1,758 1,810 1,887 1,797 1,733 1,861 1,806 1,515 15 Total reserves 61,752 63,460 62,288 62,104 61,935 61,827 62,679 61,590 62,484 61,400 16 Required reserves i 60,692 62,599 61,085 61,309 60,954 60,705 61,896 60,442 61,509 60,262 17 Excess reserve balances at Reserve Banks' 1,060 861 1,203 7% 981 1,123 783 1,148 975 1,139 18 Total borrowings at Reserve Banks 2,658 3,656 3,268 3,339 3,245 3,093 2,971 2,438 2,204 2,353 19 Seasonal borrowings at Reserve Bulks .. 337 352 390 407 431 432 408 433 337 285 20 Extended credit at Reserve Banks 2,138 2,340 2,663 2,748 2,671 2,482 2,075 1,704 1,681 1,931 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 the balances are held. 7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy 4. Equal to all vault cash held during the lagged computation period by reserve requirements less required reserves. institutions having required reserve balances at Federal Reserve Banks plus the 8. Extended credit consists of borrowing at the discount window under the amount of vault cash equal to required reserves during the maintenance period at terms and conditions established for the extended credit program to help institutions having no required reserve balances. depository institutions deal with sustained liquidity pressures. Because there is 5. Total vault cash at institutions having no required reserve balances less the not the same need to repay such borrowing promptly as there is with traditional amount of vault cash equal to their required reserves during the maintenance short-term adjustment credit, the money market impact of extended credit is period. similar to that of nonborrowed reserves. 6. Total reserves not adjusted for discontinuities consist of reserve balances 9. Data are prorated monthly averages of biweekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • January 1989 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 Feb. 15 Feb. 22 Feb. 29 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 71,220 70,499 68,564 74,546 74,875 70,844 66,924 75,487 2 For all other maturities 10,983 10,336 10,925 10,486 10,990 11,063 10,781 10,964 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 34,496 35,712 36,350 38,939 40,780 38,287 36,308 35,383 4 For all other maturities 7,250 6,146 5,926 7,002 7,567 5,974 6,270 7,084 Repurchase agreements on U.S. government and federal agency securities in immediately available funds Brokers and nonbank dealers in securities 5 For one day or under continuing contract 13,137 14,778 13,368 12,705 12,181 12,768 13,570 13,685 6 For all other maturities 16,451 13,610 14,974 13,797 14,617 14,374 13,645 15,050 All other customers 7 For one day or under continuing contract 25,709 25,270 24,686 24,513 24,704 24,364 25,634 24,025 8 For all other maturities 9,655r 9,173r 9,588r 9,613'" 10,403'' 12,275 10,562 11,956 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 34,848 36,414 32,112 35,273 35,864 35,301 31,377 36,189 10 To all other specified customers 14,115 13,620 13,381 13,953 14,047 13,503 14,184 12,487 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. 2. Brokers and nonbank dealers in securities; other depository institutions; These data also appear in the Board's H.5 (507) release. For address, see inside foreign banks and official institutions; and United States government agencies, front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels AAddjjuussttmmeenntt ccrreeddiitt Extended credit2 aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk On Effective Previous On Effective Previous On Effective Previous 11/23/88 date rate 11/23/88 date rate 11/23/88 date rate Effective date Boston 6 Vl 8/9/88 6 6W 8/9/88 6 8.95 11/17/88 8.85 11/3/88 New York 8/9/88 8/9/88 11/17/88 11/3/88 Philadelphia 8/9/88 8/9/88 11/17/88 11/3/88 Cleveland 8/9/88 8/9/88 11/17/88 11/3/88 Richmond 8/9/88 8/9/88 11/17/88 11/3/88 Atlanta 8/9/88 8/9/88 11/17/88 11/3/88 Chicago 8/10/88 8/10/88 11/17/88 11/3/88 St. Louis 8/9/88 8/9/88 11/17/88 11/3/88 Minneapolis 8/9/88 8/9/88 11/17/88 11/3/88 Kansas City 8/9/88 8/9/88 11/17/88 11/3/88 Dallas 8/11/88 8/11/88 11/17/88 11/3/88 San Francisco ... 6 W 8/9/88 6 6 W 8/9/88 6 8.95 11/17/88 8.85 11/3/88 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1980—July 28 10-11 10 11998844——AApprr.. 9 8W-9 9 1978—Jan. 9 6-6W (»W 29 10 10 13 9 9 J M ul a y y 2 1 1 1 3 0 1 0 2 6 7- 6 m V 7 1 W 2 1 - / 7 4 61 1 m IV W * 1981— D M S N e e o a p c y v t . . . 1 2 5 5 7 6 1 1 3 2 1 1 - - 2 1 1 1 4 3 1 1 1 1 1 2 3 4 11998855—— N D MM e o aa c v yy . . 2 2 2 2 4 0 1 6 7 8 W 8 W 8 W - - 8 9 7 8 8 8 W W Vi Aug. 21 73/4 73/4 8 14 14 24 7W 7W Sept. 22 8 8 Nov. 2 13-14 13 Oct. 2 1 0 6 8-m8W 8 8 W W Dec. 4 6 1 1 3 2 1 1 3 2 1986—Mar. 1 7 0 7-7 7 W 7 7 Nov. 1 8W-9W 9 W Apr. 21 6W-7 6W 3 9 W 9W 1982—July 20 11W-12 11W July 11 6 6 23 11 Vl 11W AAuugg.. 21 5W-6 5 Vl -July 20 10 10 Aug. 2 11—11 Vi 11 22 5 W 5W Aug. 17 10-10W 10W 3 11 11 20 low 10W 16 10W 10W 11998877——SSeepptt.. 4 5W-6 6 Sept. 19 10W-11 11 27 10-10W 10 11 6 6 21 11 11 30 10 10 Oct. 8 11-12 12 Oct. 12 9W-10 9W 11998888——AAuugg.. 9 6-6W 6 W 10 12 12 13 9 Vi 9W 11 6W 6W Nov. 22 9-9 W 9 1980--Feb. 15 12-13 13 26 9 9 In effect November 23, 1988 .. 6W 6W 19 13 13 Dec. 14 8W-9 9 May 29 12-13 13 15 8W-9 8W 30 12 12 17 8 Vl 8W June 13 11-12 11 16 11 11 1. Adjustment credit is available on a short-term basis to help depository somewhat above rates on market sources of funds ordinarily will be charged, but institutions meet temporary needs for funds that cannot be met through reason- in no case will the rate charged be less than the basic discount rate plus 50 basis able alternative sources. After May 19,1986, the highest rate established for loans points. The flexible rate is reestablished on the first business day of each to depository institutions may be charged on adjustment credit loans of unusual two-week reserve maintenance period. At the discretion of the Federal Reserve size that result from a major operating problem at the borrower's facility. Bank, the time period for which the basic discount rate is applied may be Seasonal credit is available to help smaller depository institutions meet regular, shortened. seasonal needs for funds that cannot be met through special industry lenders and 4. For earlier data, see the following publications of the Board of Governors: that arise from a combination of expected patterns of movement in their deposits Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical and loans. A temporary simplified seasonal program was established on Mar. 8, Digest, 1970-1979. 1985, and the interest rate was a fixed rate W percent above the rate on adjustment In 1980 and 1981, the Federal Reserve applied a surcharge to short-term credit. The program was reestablished on Feb. 18, 1986 and again on Jan. 28, adjustment credit borrowings by institutions with deposits of $500 million or more 1987; the rate may be either the same as that for adjustment credit or a fixed rate that had borrowed in successive weeks or in more than four weeks in a calendar W 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 3. For extended-credit loans outstanding more than 30 days, a flexible rate moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • January 1989 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 interval Effective date Net transaction accounts ' $0 million-$41.5 million 12/20/88 More than $41.5 million ... 12/20/88 Nonpersonal time deposits5 By original maturity Less than 1 Vi years 10/6/83 1 xfr years or more 10/6/83 Eurocurrency liabilities All types 11/13/80 1. Reserve requirements in effect on Dec. 31, 1988. 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. 20, increase in the total reservable liabilities of all depository institutions, measured 1988 for institutions reporting quarterly and Dec. 27, 1988 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 $40.5 million to $41.5 million. the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2 5. In general, nonpersonal time deposits are time deposits, including savings million to $3.4 million. In determining the reserve requirements of depository deposits, that are not transaction accounts and in which a beneficial interest is institutions, the exemption shall apply in the following order: (1) net NOW held by a depositor that is not a natural person. Also included are certain accounts (NOW accounts less allowable deductions); (2) net other transaction transferable time deposits held by natural persons and certain obligations issued accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting to depository institution offices located outside the United States. For details, see with those with the highest reserve ratio. With respect to NOW accounts and section 204.2 of Regulation D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1988 TTyyppee ooff ttrraannssaaccttiioonn 11998855 11998866 11998877 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 22,214 22,602 18,983 560 423 0 0 551155 00 11,,228800 ? Gross sales 4,118 2,502 6,050 0 0 0 0 0 0 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,500 1,000 9,029 0 0 0 0 0 0 0 Others within 1 year 5 Gross purchases 1,349 190 3,658 0 11,,009922 00 00 00 00 00 6 Gross sales 0 0 300 0 0 0 0 0 0 0 7 Maturity shift 19,763 18,673 21,502 2,051 868 1,646 1,384 1,033 3,932 1,368 8 Exchange -17,717 -20,179 -20,388 -2,089 -1,688 -4,324 -1,826 -87 -4,296 -1,646 9 Redemptions 0 0 70 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 2,185 893 10,231 0 3,661 00 00 00 00 00 11 Gross sales 0 0 452 0 0 0 0 0 0 0 1? Maturity shift -17,459 -17,058 -17,974 -2,051 -823 -1,102 -1,384 -997 -1,821 -1,368 13 Exchange 13,853 16,984 18,938 2,089 1,434 3,724 1,826 0 3,971 1,646 5 to 10 years 14 Gross purchases 458 236 2,441 0 1,017 0 00 00 00 00 N Gross sales 100 0 0 0 0 0 0 0 0 0 16 Maturity shift -1,857 -1,620 -3,529 0 -45 -387 0 -36 -2,111 0 17 Exchange 2,184 2,050 950 0 254 400 0 87 325 0 Over 10 years 18 Gross purchases 293 158 1,858 0 966 00 00 00 00 00 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -447 0 0 0 0 -157 0 0 0 0 21 Exchange 1,679 1,150 500 0 0 200 0 0 0 0 All maturities 2 7 Gross purchases 26,499 24,078 37,171 560 7,160 0 0 551155 00 11,,228800 Gross sales 4,218 2,502 6,802 0 0 0 0 0 0 0 24 Redemptions 3,500 1,000 9,099 0 0 0 0 0 0 0 Matched transactions 75 866,175 927,997 950,923 104,527 86,900 115,287 73,708 81,979 112244,,887755 111133,,888866 26 Gross purchases 865,968 927,247 950,935 104,572 85,608 115,115 72,966 83,464 123,220 113,384 Repurchase agreements2 77 Gross purchases 134,253 170,431 314,620 0 18,696 1155,,887711 1100,,552200 2222,,997788 00 3355,,880000 28 Gross sales 132,351 160,268 324,666 0 11,088 23,478 5,334 28,164 0 30,191 29 Net change in U.S. government securities 20,477 29,989 11,235 605 13,476 -7,779 4,444 -3,186 -1,655 6,386 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 00 00 00 00 00 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 162 398 276 3 120 11 0 67 10 0 Repurchase agreements2 33 22,183 31,142 80,353 0 4,243 44,,777711 55,,008833 1122,,335555 00 1122,,110077 34 Gross sales 20,877 30,522 81,351 0 1,447 7,566 2,843 14,594 0 8,225 35 Net change in federal agency obligations 1,144 222 -1,274 -3 2,676 -2,807 2,239 -2,306 -10 3,882 36 Total net change in System Open Market 21,621 30,211 9,961 602 16,151 --1100,,558855 66,,668833 --55,,449922 --11,,666655 1100,,226688 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 DomesticN onfinancial Statistics • January 1989 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1988 1988 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Aug. Sept. Oct. Consolidated condition statement ASSETS 1 Gold certificate account 11,063 11,064 11,067 11,063 11,063 11,061 11,062 11,062 2 Special drawing rights certificate account 5,018 5,018 5,018 5,018 5,018 5,018 5,018 5,018 3 384 398 406 424 431 370 397 434 Loans 4 To depository institutions 2,664 5,173 2,279 3,546 1,980 3,237 2,154 2,275 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 7,186 7,186 7,116 7,191 7,191 7,116 8 Held under repurchase agreements 3,094 0 0 0 0 0 33,,888822 11,,665511 U.S. Treasury securities Bought outright 9 Bills 109,038 102,659 108,692 109,265 107,286 105,818 106,5% 106,064 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 226,015 219,636 225,669 226,242 224,263 222,795 223,573 223,041 13 Held under repurchase agreements 2,843 0 0 0 0 0 5,608 2,597 14 Total U.S. Treasury securities 228,858 219,636 225,669 226,242 224,263 222,795 229,181 225,638 15 Total loans and securities 241,807 232,000 235,134 236,974 233,359 233,223 242,408 236,680 16 Items in process of collection 6,788 8,052 12,521 8,530 6,925 6,283 8,052 6,785 17 Bank premises 733 737 736 739 739 732 736 740 Other assets 18 Denominated in foreign currencies3 9,557 9,528 9,784 9,790 9,807 9,797 9,528 10,423 19 All other 8,184 7,757 8,002 7,885 8,115 7,109 7,984 8,189 20 Total assets 283,534 274,554 282,668 280,423 275,457 273,593 285,185 279,331 LIABILITIES 21 Federal Reserve notes 217,385 218,803 222200,,447711 221199,,778899 221199,,008811 221188,,006688 221177,,667766 221199,,223322 Deposits 22 To depository institutions 37,402 37,514 39,840 40,521 36,621 37,868 39,038 39,741 23 U.S. Treasury—General account 14,694 3,917 4,842 5,532 5,690 4,390 13,023 6,151 24 Foreign—Official accounts 331 174 273 239 226 231 338 301 25 Other 371 315 308 337 600 392 358 354 26 Total deposits 52,798 41,920 45,263 46,629 43,137 42,881 52,757 46,547 2 2 7 8 O De th fe e r r r e li d a b c i r li e t d ie i s t i a t n em d s a ccrued dividendsx 5 2 , , 8 9 4 5 2 3 6 2 , , 4 8 9 2 5 1 9 2 , , 5 8 2 3 9 4 6 2 , , 6 7 7 6 5 6 5 2 , , 9 7 2 4 0 3 5 2 , , 6 6 2 1 4 3 6 3 , , 8 2 5 7 3 7 3 5, , 0 0 8 5 9 1 29 ToUl liabUities 278,978 270,039 278,097 275,859 270,881 269,186 280,563 273,919 CAPITAL ACCOUNTS 30 Capital paid in 2,097 2,097 2,106 2,107 2,107 2,083 2,097 2,108 31 Surplus 2,047 2,047 2,047 2,046 2,047 2,041 2,047 2,047 32 Other capital accounts 412 371 418 411 422 283 478 1,257 33 Total liabUities and capital accounts 283,534 274,554 282,668 280,423 275,457 273,593 285,185 279,331 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 224,077 225,395 226,211 227,037 227,713 223,518 225,561 231,250 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 265,693 265,681 266,112 266,533 267,154 263,958 265,671 267,461 36 LESS: Held by bank 48,308 46,878 45,641 46,744 48,073 45,890 47,995 48,229 37 Federal Reserve notes, net 217,385 218,803 220,471 219,789 219,081 221188,,006688 221177,,667766 221199,,223322 Collateral held against notes net: 38 Gold certificate account 11,063 11,064 11,067 11,063 11,063 11,061 11,062 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 201,304 202,721 204,386 203,708 203,000 201,989 201,596 203,152 42 ToUl collateral 217,385 218,803 220,471 219,789 219,081 218,068 217,676 219,232 1. Some of these data also appear in the Board's H.4.1 (503) release. For 4. Includes special investment account at the Federal Reserve Bank of Chicago address, see inside front cover. in Treasury bills maturing within 90 days. 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities 5. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes securities sold and scheduled market exchange rates of foreign-exchange commitments. to be bought back under matched sale-purchase transactions. 3. Valued monthly at market exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1988 1988 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Aug. 31 Sept. 30 Oct. 31 1 Loans—Total 2,664 5,173 2,279 3,546 1,980 3,237 2,154 2,275 2 Within 15 days 2,575 4,978 2,0% 3,503 1,938 3,063 1,996 2,189 3 16 days to 90 days 89 195 183 43 42 174 158 86 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. Treasury securities—Total 228,858 219,636 225,669 226,242 224,263 222,795 223,573 223,041 10 Within 15 days1 14,652 6,553 9,430 10,253 8,873 10,774 2,318 5,789 11 16 days to 90 days 52,197 48,746 51,803 51,486 53,146 50,393 55,265 51,917 12 91 days to 1 year 62,886 68,726 68,826 68,699 66,440 66,296 70,379 70,477 13 Over 1 year to 5 years 58,915 55,403 55,403 55,445 55,445 55,124 55,403 54,499 14 Over 5 years to 10 years 13,700 13,700 13,699 13,851 13,851 13,700 13,700 13,851 15 Over 10 years 26,508 26,508 26,508 26,508 26,508 26,508 26,508 26,508 16 Federal agency obligations—Total 10,285 7,191 7,186 7,186 7,116 7,191 7,191 7,116 17 Within 15 days' 3,309 215 148 262 228 287 215 228 18 16 days to 90 days 742 793 815 701 735 660 793 782 19 91 days to 1 year 1,614 1,563 1,607 1,607 1,539 1,647 1,563 1,492 20 Over 1 year to 5 years 3,293 3,293 3,289 3,289 3,322 3,268 3,293 3,322 21 Over 5 years to 10 years 1,138 1,138 1,138 1,138 1,103 1,140 1,138 1,103 22 Over 10 years 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 • January 1989 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1988 IItteemm 1984 1985 1986 1987 Dec. Dec. Dec. Dec. Mar. Apr. May June July Aug. Sept/ Oct. Seasonally adjusted CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 40.96 47.26 57.46 58.72 59.76 60.37 60.37 60.64 61.24 61.09 61.00 60.96 2 Nonborrowed reserves 37.77 45.94 56.63 57.94 58.01 57.38 57.79 57.55 57.80 57.85 58.16 58.66 3 Nonborrowed reserves plus extended credit4 40.38 46.44 56.93 58.43 59.49 60.00 59.89 60.11 60.34 60.50 60.21 60.44 4 Required reserves 40.11 46.20 56.09 57.69 58.83 59.51 59.32 59.75 60.23 60.14 60.02 59.89 5 Monetary base 200.45 218.26 240.80 257.93 263.32 265.81 266.92 268.31 270.63 271.20 272.45 273.75 Not seasonally adjusted 6 Total reserves3 41.84 48.27 58.70 60.02 58.85 60.95 59.45 60.68 61.47 60.59 60.65 60.55 7 Nonborrowed reserves 38.65 46.95 57.87 59.25 57.10 57.95 56.88 57.60 58.03 57.35 57.82 58.25 8 Nonborrowed reserves plus extended credit 41.26 47.45 58.18 59.73 58.58 60.58 58.98 60.15 60.57 60.00 59.87 60.03 9 Required reserves 40.99 47.21 57.33 58.99 57.92 60.09 58.41 59.79 60.46 59.64 59.68 59.48 10 Monetary base5 203.39 221.49 244.55 262.05 260.77 265.01 265.73 269.44 272.41 271.73 271.57 272.46 NOT ADJUSTED FOR , CHANGES IN RESERVE REQUIREMENTS6 11 Total reserves3 40.70 48.14 59.56 62.12 60.08 62.06 60.68 61.99 62.76 61.97 62.15 61.92 12 Nonborrowed reserves 37.51 46.82 58.73 61.35 58.32 59.07 58.10 58.91 59.32 58.72 59.31 59.62 13 Nonborrowed reserves plus extended credit4 40.09 47.41 59.04 61.86 59.58 61.89 60.08 61.47 61.99 61.26 61.32 61.46 14 Required reserves 39.84 47.08 58.19 61.09 59.15 61.21 59.64 61.10 61.75 61.01 61.18 60.85 15 Monetary base5 204.18 223.53 247.71 266.16 263.98 268.13 268.90 272.65 275.59 275.03 274.87 275.79 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 MEASURES' Billions of dollars, averages of daily figures 1988 2 1984 1985 1986 1987 Dec. Dec. Dec. Dec. July Aug.' Sept.' Oct. Seasonally adjusted 1 Ml 551.9 620.1 725.4 750.8 782.3 782.5 782.4 783.5 2 M2 2,363.6 2,562.6 2,807.7 2,901.0 3,025.8' 3,031.6 3,033.9 3,036.9 3 M3 2,978.3 3,196.4 3,490.8 3,664.4' 3,836.2' 3,848.3 3,853.2 3,868.4 4 L 3,519.4 3,825.9 4,134.3 4,329.3r 4,561.0' 4,579.7 4,584.4 n.a. 5 Debt 5,907.4 6,716.8 7,572.7 8,279.3 8,674.6' 8,736.6 8,796.2 n.a. Ml components 6 Currency 156.1 167.7 180.4 196.5 206.3 207.2 208.5 209.5 7 Travelers checks 5.2 5.9 6.5 7.1 7.2 7.2 7.3 7.4 8 Demand deposits 244.1 267.2 303.3 288.0 290.6 290.1 288.4 288.6 9 Other checkable deposits6 146.4 179.2 235.2 259.3 278.2' 278.0 278.2 277.9 Nontransactions components 10 In M2 ... 1,811.7 1,942.5 2,082.3 2,150.2 2,243.4' 2,249.2 2,251.6 22,,225533..44 11 In M3 only8 614.7 633.8 683.1 763.4' 810.5' 816.7 819.3 831.5 Savings deposits9 12 Commercial Banks 122.6 124.8 155.5 178.2 189.5 190.7 190.3 118899..99 13 Thrift institutions 162.9 176.6 215.2 236.0 242.4' 243.5 243.1 241.3 Small-denomination time deposits10 14 Commercial Banks 386.3 383.3 364.6 384.6 409.8 414.1 421.0 429.2 15 Thrift institutions 497.0 496.2 488.6 528.5 568.7 571.6 576.4 580.7 Money market mutual funds 16 General purpose and broker-dealer 167.5 176.5 208.0 221.1 229.6 230.8 230.9 231.4 17 Institution-only 62.7 64.5 84.4 89.6 84.8 84.0 83.7 84.6 Large-denomination time deposits" IK Commercial Banks 270.2 284.9 288.9 323.5 341.2 347.2 352.3 335566..77 19 Thrift institutions 146.8 151.6 150.3 161.2 168.0' 167.9 171.3 173.5 Debt components 20 Federal debt 1,366.1 1,585.3 1,805.8 1,956.1 2,040.8 2,057.7 2,078.2 n.a. 21 Nonfederal debt 4,541.3 5,131.5 5,766.9 6,323.2 6,633.8' 6,678.9 6,718.0 n.a. Not seasonally adjusted 77 Ml 564.5 633.5 740.6 765.9 785.5 781.2 779.8 780.9 7.3 M2 2,373.2 2,573.9 2,821.4 2,914.7 3,030.3' 3,030.8 3,029.1 3,038.4 24 M3 2,991.4 3,211.0 3,507.6 3,681 .C 3,833.5' 3,846.0 3,851.9 3,868.8 25 L 3,532.7 3,841.4 4,152.3 4,347.4r 4,550.3' 4,571.8 4,580.2 n.a. 26 5,901.1 6,706.8 7,556.6 8,261.2 8,639.5' 8,693.6 8,755.2 n.a. Ml components 27 Currency 158.5 170.2 183.0 199.4 207.9 207.9 207.9 209.0 28 Travelers checks 4.9 5.5 6.0 6.5 8.2 8.2 7.9 7.5 29 Demand deposits 253.0 276.9 314.4 298.5 292.7' 288.7 287.1 288.4 30 Other checkable deposits6 148.2 180.9 237.3 261.6 276.8 276.3 276.9 276.1 Nontransactions components 31 M2 1,808.7 1,940.3 2,080.7 2,148.8 2,244.8' 2,249.6 2,249.3 22,,225577..55 32 M3 only8 618.2 637.1 686.2 766.3' 803.2' 815.2 822.7 830.4 Money market deposit accounts 33 Commercial Banks 267.4 332.8 379.6 358.2 359.4 357.0 353.7 352.3 34 Thrift institutions 149.4 180.8 192.9 167.0 161.7' 160.1 157.0 154.4 Savings deposits9 35 Commercial Banks 121.5 123.7 154.2 176.7 191.5' 190.9 189.8 190.1 36 Thrift institutions 161.5 174.8 212.9 233.3 245.7' 244.0 242.3 242.0 Small-denomination time deposits10 37 Commercial Banks 386.9 384.0 365.3 385.2 410.3 415.3 422.8 430.0 38 Thrift institutions 498.2 497.5 489.7 529.3 568.9 571.4 575.6 582.0 Money market mutual funds 39 General purpose and broker-dealer 167.5 176.5 208.0 221.1 229.6 230.8 230.9 231.4 40 Institution-only 62.7 64.5 84.4 89.6 84.8 84.0 83.7 84.6 Large-denomination time deposits" 41 Commercial Banks12 270.9 285.4 289.1 323.6 338.4 346.5 352.3 356.0 42 Thrift institutions 146.8 151.9 150.7 161.8 166.5 167.6 171.7 174.6 Debt components 43 Federal debt 1,364.7 1,583.7 1,803.9 1,954.1 2,022.3 2,035.8 2,054.9 n.a. 44 Nonfederal debt 4,536.4 5,123.1 5,752.8 6,307.1 6,617.2' 6,657.7 6,700.3 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 DomesticN onfinancial Statistics • January 1989 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (308) 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 19852 19862 19872 Mar. Apr. May June July Aug. Seasonally adjusted Demand deposits3 1 All insured banks 156,091.6 188,345.8 217,115.9 218,986.7 213,971.5 224,052.3 230,198.8 224,512.7 228,898.2 2 Major New York City banks 70,585.8 91,397.3 104,496.3 101,161.0 100,695.1 109,714.7 111,402.1 107,336.7 110,150.0 3 Other banks 85,505.9 96,948.8 112,619.6 117,825.7 113,276.4 114,337.6 118,796.6 117,176.0 118,748.2 4 ATS-NOW accounts4 1,823.5 2,182.5 2,402.7 2,856.8 2,557.9 2,664.9 2,786.0 2,570.4 2,963.6 5 Savings deposits5 384.9 403.5 526.5 640.7 543.7 574.7 597.1 538.3 609.6 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 500.3 556.5 612.1 628.8 600.2 630.9 649.8 622.7 645.8 7 Major New York City banks 2,196.9 2,498.2 2,670.6 2,811.0 2,700.6 2,881.3 2,911.0 2,789.6 2939.3 8 Other banks 305.7 321.2 357.0 377.3 354.9 360.6 376.0 363.8 374.6 9 ATS-NOW accounts4 15.8 15.6 13.8 15.5 13.8 14.2 14.8 13.5 15.6 10 Savings deposits5 3.2 3.0 3.1 3.5 3.0 3.1 3.2 2.9 3.2 DEBITS TO Not seasonally adjusted Demand deposits 11 All insured banks 156,052.3 188,506.4 217,124.8 233,286.6 214,848.8 222,685.5 241,133.2 217,350.7 237,459.0 12 Msyor New York City banks 70,559.2 91,500.0 104,518.6 109,557.8 101,141.9 106,335.6 117,287.7 103,561.2 112,654.6 13 Other banks 85,493.1 97,006.6 112,606.1 123,728.8 113,706.9 116,349.9 123,845.5 113,789.6 124,804.4 14 ATS-NOW accounts4 1,826.4 2,184.6 2,404.8 2,825.0 2,745.3 2,601.3 2,851.4 2,536.6 2,828.0 15 MMDA° 1,223.9 1,609.4 1,954.2 2,337.5 2,372.8 2,341.0 2,557.1 2,399.0 2,530.0 16 Savings deposits5 385.3 404.1 526.8 616.5 603.2 566.4 598.3 566.2 615.9 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 499.9 556.7 612.3 684.3 601.8 638.6 679.5 599.9 681.6 18 Major New York City banks 2,196.3 2,499.1 2,674.9 3,005.7 2,706.2 2,895.6 3,121.4 2,660.7 3,170.3 19 Other banks 305.6 321.2 356.9 406.4 355.7 372.9 390.3 351.9 398.9 20 ATS-NOW accounts4 15.8 15.6 13.8 15.3 14.4 14.1 15.2 13.4 15.1 21 MMDA" 4.0 4.5 5.3 6.5 6.6 6.6 7.2 6.7 7.2 22 Savings deposits5 3.2 3.0 3.1 3.4 3.3 3.1 3.2 3.0 3.3 1. Historical tables containing revised data for earlier periods may be obtained of states and political subdivisions. from the Monetae 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 ATS 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 DomesticN onfinancial Statistics • January 1989 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1987 1988 CCaatteeggoorryy Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1 Total loans and securities2 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 2,373.6' 2,387.5 2 U.S. government securities 332.6 335.0 336.4 336.4 340.2 343.8 346.5 350.5 348.0 350.5 352.5' 355.1 3 Other securities 195.1 194.5 192.0 193.7 195.7 196.6 196.1 196.5 196.8 196.4 194.2' 195.4 4 Total loans and leases2 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 1,826.8' 1,836.9 5 Commercial and industrial ..... 561.3 562.4 565.2 569.3 568.6 578.1 586.3 592.4 598.3 599.4 597.1' 600.9 6 Bankers acceptances held ... 4.4 4.1 4.3 4.3 4.7 4.6 4.4 4.4 4.4 44..66 44..55 44..22 '/ Other commercial and industrial 556.9 558.3 560.9 564.9 564.0 573.5 582.0 588.1 593.9 594.7 592.7 596.7 8 U.S. addressees4 549.4 550.2 552.2 556.3 555.8 565.5 575.1 581.3 587.4 588.4 586.4 590.6 9 Non-U.S. addressees4 7.5 8.1 8.7 8.7 8.2 8.1 6.9 6.8 6.5 6.3 6.3 6.1 10 Real estate 581.2 588.4 593.7 599.2 604.9 611.3 618.6 625.0 631.4 638.7 644.7 652.0 11 Individual 326.3 327.8 329.8 333.0 337.0 340.4 342.8 344.4 345.3 347.0 349.1 349.6 12 Security 39.3 33.4 36.5 42.1 41.2 39.5 39.8 39.3 38.6 40.1 3366..33 3388..44 13 Nonbank financial institutions 31.8 31.8 31.4r 31.8' 31.2' 30.4' 30.9' 30.6' 31^ 30.8' 29^ 29.8 14 Agricultural 29.5 29.5 29.6 29.5 29.3 29.4 29.6 29.7' 29.6 29.4 2299..33 2299..33 15 State and political subdivisions 54.1 52.2 51.7 51.0 50.1 49.5 49.3 49.3' 50.2 49.6 49.4 48.7 16 Foreign banks 8.2 7.5 7.6 7.4 7.8 8.3 8.0 7.9 8.2 8.1 7.4 7.6 17 Foreign official institutions 5.5 5.3 5.4 5.1 5.1 5.1 5.1 5.0 5.0 5.2 5.2 5.1 18 Lease financing receivables .... 24.6 24.6 25.1 25.3 25.4 25.7 26.0 26.5 27.2 27.3 27.7' 28.1 19 All other loans 45.8 40.5' 40.4' 40.4r 44.8' 46.5' 49.5' 51.3' 51.C 52.3' 50.7' 47.3 Not seasonally adjusted 20 Total loans and securities2 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 2,370.3' 2,382.0 21 U.S. government securities 332.5 334.9 337.9 341.5 342.0 343.4 344.9 347.0 347.1 350.5 352.7 352.8 22 Other securities 194.5 195.0 194.6 194.4 195.3 196.2 196.1 196.0 195.5 196.3 194.3' 194.3 23 Total loans and leases2 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 1,823.3' 1,834.9 24 Commercial and industrial ..... 560.2 566.4 564.9 568.5 573.8 582.1 588.8 594.0 595.4 594.2 593.7 596.4 25 Bankers acceptances held ... 4.4 4.2 4.1 4.3 4.7 4.5 4.4 4.5 4.4 44..66 44..55 44..11 26 Other commercial and 27 U.S. i n a d d u d s r t e ri s a s l e es4. 5 54 5 7 5 . . 7 8 5 5 6 5 2 4 . . 2 1 5 5 6 5 0 2 . . 7 8 5 5 6 5 4 6 . . 2 0 5 5 6 6 9 1 . . 1 2 5 56 7 9 7 . . 7 6 5 5 8 7 4 7 . . 4 3 5 5 8 8 9 2 . . 5 6 5 5 9 8 1 4 . . 0 0 5 5 8 8 9 2 . . 6 9 5 5 8 8 9 2 . . 1 5 ' ' 5 58 9 6 2 . . 1 3 28 Non-U.S. addressees 8.1 8.1 8.0 8.2 7.9 7.9 7.1 6.9 7.0 6.7 6.6 6.2 29 Real estate 581.7 589.3 594.1 598.5 604.1 610.3 618.1 624.8 631.5 638.7 645.5 652.6 30 Individual 328.0 332.1 333.3 332.4 333.9 337.4 339.9 342.3 343.8 347.1 350.7' 351.3 31 Security 39.4 35.0 37.3 40.5 40.6 41.2 40.4 40.8 38.2 3388..33 3355..33 3377..11 32 Nonbank financial institutions 32.2 33.1 31.6r 30.8' 30.3' 30.3' 30.7' 30.6' 30.8' 30.7' 30.2' 29.9 33 Agricultural 29.8 29.3 28.9 28.5 28.3 28.6 29.3 30.(y 30.3 3300..33 3300..33 3300..22 34 State and political subdivisions 53.1 52.2 53.5 52.2 51.0 50.0 49.3 48.9 49.5 49.0 48.6 47.9 35 Foreign banks 8.2 7.9 7.8 7.6 7.7 7.9 7.7 7.8 8.2 7.9 7.6 7.8 36 Foreign official institutions 5.5 5.3 5.4 5.1 5.1 5.1 5.1 5.0 5.0 5.2 5.2 5.1 37 Lease financing receivables 24.3 24.6 25.2 25.4 25.6 25.9 26.1 26.7 27.2 27.2 27.5' 27.6 38 All other loans 45.0 44.0 42. 43.3' 43.9' 47.5' 48.9' 50.8' 48.2' 48.0' 48.5' 48.8 1. These data also appear in the Board's G.7 (407) release. For address, see 3. Includes nonfinancial commercial paper held. inside front cover. 4. United States includes the 50 states and the District of Columbia. 2. Excludes loans to commercial banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1987 1988 SSoouurrccee Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.' Oct. Total nondeposit funds 174.5' 178.4 180.2 178.1 175.8 183.1 194.3 194.8 192.2r 195.5' 181.0 177.8 176.9 179.3 180.6 180.7 176.6 182.2 194.<r 191.1 188.2' 195.8' 181.6 178.1 Federal funds, RPs, and other borrowings from nonbanks3 166.7 163.2 171.1 175.0 178.9 181.1 184.5 186.1 181.4' 176.8' 171.9 173.0 169.0 164.1 171.4 177.6 179.8 180.2 184.3 182.4 177.4' 177.1' 172.5 173.3 5 Net balances due to foreign-related 7.9 15.2 9.1 3.1 -3.1 2.0 9.7 8.7 10.8 18.7 9.1 4.8 MEMO 6 Domestically chartered banks1 net positions with own foreign branches, not seasonally adjusted -17.1 -14.0 -16.5 -20.2 -25.3 -22.2 -16.5 -16.3 -14.0 -7.2 -15.6 -20.7 70.4 69.5 71.2 72.9 76.6 72.9 69.7 69.6 70.3 70.4 74.8 76.7 53.3 55.5 54.7 52.7 51.4 50.7 53.2 53.3 56.4 63.1 59.1 56.0 9 Foreign-related institutions' net positions with directly related institutions, 24.9 29.2 25.6 23.3 22.1 24.2 26.2 25.0 24.8 26.0 24.7 25.5 83.2 79.8 85.2 87.3 88.6 88.3 89.9 93.6 94.1 93.9 89.6 88.4 108.2 109.0 110.9 110.6 110.7 112.4 116.1 118.6 118.9 119.8 114.4 113.9 Security RP borrowings 107.6 107.3 110.C 109.0 109.7 113.5 117.7 122.0 119.5' 116.6' 112.6 112.3 109.9 108.1' 110.4 111.6 110.6 112.6 117.5 118.3 115.5' 116.9r 113.2 112.6 U.S. Treasury demand balances7 35.7 26.1 18.6 22.6 24.9 21.8 24.7 22.0 20.2 15.8 24.5 30.7 25.8 22.4 24.9 28.2 22.3 21.7 30.4 21.0 22.0 11.9 24.6 27.7 Time deposits, $100,000 or more® 387.0 389.2 389.1 394.4 396.1 394.0 396.4 400.5 406.8' 413.6' 419.7 423.7 338877..00 338899..33 339900..11 339944..77 339988..22 339933..99 397.1 399.8 404.0' 412.9' 419.7 423.0 1. Commercial banks are those in the 50 states and the District of Columbia business. This includes borrowings from Federal Reserve Banks and from foreign with national or state charters plus agencies and branches of foreign banks. New banks, term federal funds, overdrawn due from bank balances, loan RPs, and York investment companies majority owned by foreign banks, and Edge Act participations in pooled loans. corporations owned by domestically chartered and foreign banks. 4. Averages of daily figures for member and nonmember banks. These data also appear in the Board's G.10 (411) release. For address, see 5. Averages of daily data. inside front cover. 6. Based on daily average data reported by 122 large banks. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 7. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at nonbanks and not seasonally adjusted net Eurodollars. commercial banks. Averages of daily data. 3. Other borrowings are borrowings on any instrument, such as a promissory 8. Averages of Wednesday figures. note or due bill, given for the purpose of borrowing money for the banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • January 1989 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1987 1988 Account Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. ALL COMMERCIAL BANKING INSTITUTIONS 1 Loans and securities 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 2.522.7 2,537.9 2 Investment securities 514.7 515.7 514.9 517.7 519.7 521.6 518.6 521.6 525.4 525.9 523.6 3 U.S. government securities 323.6 325.5 325.0 325.7 328.8 330.7 328.0 331.6 334.6 336.5 334.4 4 Other 191.2 190.3 190.0 192.0 190.9 191.0 190.6 190.0 190.8 189.4 189.2 5 Trading account assets 16.9 18.2 21.9 20.3 19.6 20.3 22.1 23.9 22.8 21.3 24.8 6 Total loans 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 1,975.5 1,989.4 7 Interbank loans 168.1 159.0 161.4 159.5 158.0 152.3 163.7 158.7 154.7 151.2 158.5 8 Loans excluding interbank 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 1,824.3 1,830.9 9 Commercial and industrial 572.2 562.9 568.9 576.2 583.4 587.8 598.2 592.4 592.8 593.8 593.8 10 Real estate 593.7 595.2 599.2 607.3 612.5 619.7 627.5 633.1 641.8 647.8 654.1 11 Individual 334.1 332.9 332.7 334.8 339.1 340.0 343.2 344.1 349.2 351.5 351.9 12 All other 229.3 233.6 228.7 234.1 234.6 231.7 238.4 235.2 236.6 231.2 231.1 13 Total cash assets 236.2 213.4 207.4 211.2 214.3 200.3 221.4 217.0 221.8 215.9 208.5 14 Reserves with Federal Reserve Banks 36.2 33.3 32.7 32.0 32.2 26.0 34.4 30.7 33.0 31.1 31.6 15 Cash in vault 28.4 25.7 25.1 24.8 25.4 25.4 26.5 25.9 26.5 26.2 26.3 16 Cash items in process of collection .. 80.1 70.8 66.9 74.1 76.4 71.5 77.2 75.7 79.9 76.4 72.6 17 Demand balances at U.S. depository institutions 36.2 31.7 30.4 32.0 30.3 29.2 31.6 31.3 31.5 29.4 29.2 18 Other cash assets 52.3 49.9 51.8 53.5 50.9 52.8 48.8 55.3 51.9 48.2 48.3 19 Other assets 191.6 181.5 180.9 193.1 190.9 186.6 194.3 188.4 187.5 191.8 201.2 20 Total assets/total liabilities and capital... 2,816.0 2.871.9 2,927.5 2,914.4 2,932.6 2,930.3 2,947.6 2,856.8 2.812.5 2,854.3 2.860.2 21 Deposits 2,011.8 1.971.6 1,978.4 2.008.5 2.011.6 2,042.5 2,050.2 2,072.9 2.058.8 2,067.3 22 Transaction deposits 624.9 577.4 568.6 588.5 595.9 2,008.6 603.3 598.4 609.5 588.3 586.9 23 Savings deposits 527.9 531.6 535.7 540.0 536.4 579.1 544.5 545.4 542.2 536.9 538.4 24 Time deposits 859.0 862.6 874.1 879.9 879.3 542.2 894.7 906.4 921.2 933.6 941.9 25 Borrowings 432.8 452.1 450.8 454.9 465.8 887.3 487.4 470.7 452.4 470.8 481.3 26 Other liabilities 228.4 205.4 202.5 207.7 210.1 458.4 209.7 208.2 218.5 213.1 210.0 27 Residual (assets less liabilities) 183.7 183.5 184.4 183.2 184.4 207.4 187.8 185.3 188.7 187.6 189.0 185.8 MEMO 28 U.S. government securities (including trading account) 334.6 339.5 342.1 341.2 343.4 346.3 344.7 349.2 351.4 352.7 354.3 29 Other securities (including trading account) 197.0 194.5 194.7 196.8 195.9 195.6 196.0 196.4 196.7 194.4 194.2 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 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 2,329.1 2,342.4 31 Investment securities 489.7 489.1 488.6 491.7 494.6 495.7 492.8 495.3 499.3 501.0 498.5 32 U.S. Treasury securities 313.1 313.9 313.6 314.5 317.7 318.6 316.3 319.3 322.8 325.0 323.1 33 Other 176.6 175.2 175.0 177.2 176.9 177.1 176.6 176.1 176.5 175.9 175.5 34 Trading account assets 16.9 18.2 21.9 20.3 19.6 20.3 22.1 23.9 22.8 21.3 24.8 35 Total loans 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 1,806.8 1,819.0 36 Interbank loans 133.8 130.3 132.0 131.2 128.5 124.9 133.1 130.7 125.2 121.8 127.8 37 Loans excluding interbank 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 1,685.0 1,691.2 38 Commercial and industrial 479.2 472.7 475.8 481.0 487.4 488.8 492.6 490.8 489.7 489.2 490.2 39 Real estate 579.8 581.7 584.5 592.1 597.0 603.6 611.4 617.5 625.4 631.5 636.5 40 Individual 333.8 332.6 332.4 334.5 338.8 339.7 342.9 343.8 348.9 351.2 351.6 41 Allother 211.9 215.9 211.1 215.3 216.4 213.5 219.7 217.3 219.2 213.2 212.9 42 Total cash assets 217.0 194.2 186.6 193.9 196.7 183.0 201.6 196.4 202.8 193.4 189.7 43 Reserves with Federal Reserve Banks 35.0 31.7 30.5 30.1 30.7 23.6 32.9 29.5 31.4 29.0 29.8 44 Cash in vault 28.4 25.7 25.1 24.7 25.4 25.4 26.4 25.9 26.4 26.2 26.3 45 Cash items in process of collection .. 79.6 70.3 66.4 73.5 75.8 71.0 76.5 75.1 79.2 75.7 71.9 46 Demand balances at U.S. depository institutions 34.3 30.1 28.8 30.4 28.7 27.5 29.8 29.4 29.8 27.3 27.2 47 Other cash assets 36.5 35.8 36.0 35.8 36.0 35.3 39.7 35.2 35.6 36.5 34.4 48 Other assets 116.0 118.5 121.3 125.6 123.8 127.8 126.4 123.1 118.3 121.6 132.9 49 Total assets/liabilities and capital 2.550.6 2.551.4 2,600.3 2.641.8 2,657.2 2,650.3 2,588.5 2,583.0 2.587.7 2,637.4 2.665.0 50 Deposits 1,948.3 1.910.2 1,916.1 1,944.5 1,948.1 1.976.9 1,984.4 2.006.4 1,991.0 1.999.1 51 Transaction deposits 616.9 569.3 560.7 580.0 587.2 1,944.7 594.5 589.6 600.6 579.1 577.3 52 Savings deposits 525.6 529.3 533.3 537.6 533.9 570.7 541.8 542.9 539.7 534.4 535.8 53 Time deposits 805.8 811.6 822.0 826.9 827.0 539.8 840.6 851.9 866.1 877.5 885.9 54 Borrowings 337.5 351.7 349.9 350.1 358.4 834.2 369.4 358.5 345.7 358.6 363.2 55 Other liabilities 122.3 108.6 104.4 108.6 112.7 351.7 111.0 112.5 119.6 116.4 117.0 56 Residual (assets less liabilities) 180.5 180.2 181.1 179.9 181.1 1 1 0 8 8 2 . . 8 4 184.5 182.0 185.4 184.3 185.6 MEMO4 57 Real estate loans, revolving 31.7 31.3 31.7 32.1 33.0 33.7 34.8 35.3 36.3 37.3 37.9 58 Real estate loans, other 548.2 550.4 552.9 560.0 564.0 569.9 576.6 582.2 589.2 594.1 598.5 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 day of the month based on a sample of weekly reporting banks and quarter-end separate breakdowns for the first time. 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 BANKS' Millions of dollars, Wednesday figures Aug. 31 Sept. T Sept. 14r Sept. 2V Sept. 28r Oct. 5 Oct. 12 1 Cash and balances due from depository institutions — 106,720 111,668 108,944 107,444 103,487 105,122 119,433 106,386 2 Total loans, leases, and securities, net 1,132,208 1,135,235 1,126,812 1,132,483 1,127,376 1,137,731 1,132,809 1,140,338 3 U.S. Treasury and government agency 130,952 132,268 132,444 131,888 131,705 132,212 132,752 132,826 4 Trading account 16,883 17,366 17,850 18,144 16,595 17,529 18,534 18,784 5 Investment account 114,069 114,901 114,594 113,744 115,110 114,683 114,218 114,042 6 Mortgage-backed securities 43,528 43,763 43,716 43,630 44,140 44,221 44,193 44,466 All other maturing in 7 One year or less 18,690 19,252 19,242 19,209 19,354 19,212 19,228 19,234 8 Over one through five years 42,882 42,546 42,472 41,812 42,478 41,832 41,550 41,240 9 Over five years 8,970 9,340 9,165 9,093 9,138 9,418 9,247 9,101 10 Other securities 72,652 72,273 72,311 72,201 72,583 72,762 72,779 72,776 11 Trading account 1,722 1.455 1,480 1,499 1,836 1,736 1,564 1,5% 12 Investment account 70,929 70,818 70,831 70,702 70,747 71,027 71,215 71,180 13 States and political subdivisions, by maturity 46,889 46,732 46,704 46,581 46,563 46,293 46,236 46,140 14 One year or less 5,430 5,468 5,475 5,463 5,454 5,452 5,468 5,420 15 Over one year 41,459 41,263 41,229 41,117 41,109 40,841 40,768 40,719 16 Other bonds, corporate stocks, and securities 24,040 24,087 24,127 24,121 24,184 24,734 24,979 25,040 17 Other trading account assets 4,068 3,963 3,203 2,864 3,254 3,336 3,502 3,634 18 Federal funds sold3 69,329 73,364 66,653 72,747 68,399 73,973 67,251 71,754 19 To commercial banks 42,644 46,562 42,452 48,384 45,916 50,554 43,109 46,430 20 To nonbank brokers and dealers in securities 18,070 16,906 15,039 15,158 13,792 15,068 16,317 16,737 21 To others 8,615 9,897 9,163 9,205 8,692 8,351 7,825 8,586 22 Other loans and leases, gross 895,845 894,038 892,826 893,391 891,978 895,743 8%,574 899,321 23 Other loans, gross 873,293 871,328 870,025 870,569 869,0% 872,629 873,414 876,142 24 Commercial and industrial 296,449 296,684 296,295 296,999 2%,297 298,476 298,074 297,985 25 Bankers acceptances and commercial paper 1,897 2,000 1,825 1,776 1,710 1,685 1,701 1,703 26 All other 294,552 294,683 294,470 295,224 294,586 296,791 296,373 296,281 27 U.S. addressees 292,167 292,263 292,111 292,8% 292,265 294,539 294,152 294,056 28 Non-U.S. addressees 2,385 2,420 2,358 2,328 2,322 2,252 2,222 2,225 29 Real estate loans 288,586 288,632 289,725 290,672 291,036 291,650 292,314 293,594 30 Revolving, home equity 20,104 20,194 20,339 20,486 20,509 20,620 20,707 20,808 31 Allother 268,482 268,438 269,386 270,185 270,527 271,030 271,606 272,785 32 To individuals for personal expenditures 164,022 163,954 164,534 164,875 165,253 164,855 164,158 164,119 33 To depository and financial institutions 50,643 50,276 48,446 46,935 45,331 46,133 47,818 47,487 34 Commercial banks in the United States 24,432 23,425 22,381 20,867 20,158 20,551 21,338 21,886 35 Banks in foreign countries 4,286 4.456 3,875 4,246 3,865 3,939 4,882 3,%2 36 Nonbank depository and other financial institutions 21,925 22,396 22,190 21,822 21,308 21.643 21,599 21,640 37 For purchasing and carrying securities 13,667 12,254 12,605 12,410 12,744 12,462 12,369 13,925 38 To finance agricultural production 5,636 5,534 5,562 5,594 5,555 5,613 5,587 5,585 39 To states and political subdivisions 30,037 29,930 29,865 29,830 29,722 29,546 29,512 29,452 40 To foreign governments and official institutions — 2,230 2,191 2,0% 2,187 2,250 2,250 2,186 2,138 41 Allother 22,022 21,872 20,897 21,066 20,908 21.644 21,395 21,857 42 Lease financing receivables 22.552 22,710 22,801 22,822 22,882 23,114 23,160 23,178 43 LESS: Unearned income 4,871 4,894 4,924 4,942 4,947 4,921 4,934 4,862 44 Loan and lease reserve 35,768 35,777 35,701 35,664 35,597 35,374 35,117 35,110 45 Other loans and leases, net 855,206 853,367 852,200 852,785 851,434 855,447 856,524 859,348 46 All other assets 123,960 125,158 128,377 128,306 127,177 133,691 133,444 130,717 47 Total assets 1,362,888 1,372,061 1,364,133 1,368,233 1,358,040 1,376,544 1,385,686 1,377,442 48 Demand deposits 229,554 235,528 228,746 216,068 221,565 232,206 238,057 223,717 49 Individuals, partnerships, and corporations 184,138 185,481 183,247 172,612 174,319 182,012 189,160 177,227 50 States and political subdivisions 6,157 6,078 5,814 6,346 5,774 5,975 5,288 5,658 51 U.S. government 1,656 1,501 3,514 1,586 2,070 5,118 1,776 4,107 52 Depository institutions in the United States 21,794 25,346 21,418 19,902 20,713 23,136 25,389 21,710 53 Banks in foreign countries 7,169 7,722 6,037 6,637 6,377 6,111 6,905 6,500 54 Foreign governments and official institutions 695 651 690 702 713 868 581 688 55 Certified and officers' checks 7,945 8,749 8,026 8,283 11,599 8,985 8,959 7,827 56 Transaction balances other than demand deposits 73.553 75,362 73,873 71,505 70,221 73,902 73,328 72,480 57 Nontransaction balances 609,987 611,997 613,259 612,125 612,025 616,774 617,829 617,061 58 Individuals, partnerships, and corporations 569,598 571,800 572,979 572,244 572,172 576,569 577,586 577,108 59 States and political subdivisions 29,842 29,899 29,959 29,607 29,855 30,408 30,539 30,394 60 U.S. government 987 890 884 883 893 890 872 917 61 Depository institutions in the United States 8,722 8,586 8,600 8,550 8,261 8,056 7,991 7,7% 62 Foreign governments, official institutions, and banks 838 822 837 841 844 850 840 846 63 Liabilities for borrowed money 264,324 270,379 266,689 287,493 271,983 278,315 279,945 283,452 64 Borrowings from Federal Reserve Banks 2,600 2,450 2,350 5,731 2,000 4,130 1,750 2,901 65 Treasury tax-and-loan notes 6,750 5,938 9,084 25,603 25,739 13,956 16,856 18,482 66 All other liabilities for borrowed money5 254,973 261,991 255,255 256,159 244,244 260,229 261,339 262,069 67 Other liabilities and subordinated notes and debentures 93,775 87,026 89,282 88,657 90,237 83,693 83,992 88,454 68 Total liabilities 1,271,193 1,280,292 1,271,850 1,275,848 1,266,032 1,284,890 1,293,152 1,285,164 69 Residual (total assets minus total liabilities)6 91,694 91,768 92,284 92,384 92,009 91,654 92,534 92,278 70 T M o E t M al O l oans and leases (gross) and investments adjusted 7 1,105,770 1,105,920 1,102,605 1,103,840 1,101,847 1,106,922 1,108,412 1,111,995 71 Total loans and leases (gross) adjusted7 898,098 897,416 894,646 8%,887 894,304 898,611 899,378 902,759 72 Time deposits in amounts of $100,000 or more 190,783 191,241 192,424 193,066 192,807 194,374 193,821 194,166 73 U.S. Treasury securities maturing in one year or less .. 19,414 19,801 19,831 20,186 18,708 18,959 18,715 18,986 74 Loans sold outright to affiliates—total® 1,289 1,442 1,339 1,307 1,386 1,303 1,304 1,291 75 Commercial and industrial 843 996 893 866 946 879 879 866 76 Other 446 446 446 441 441 424 426 426 77 Nontransaction savings deposits (including MMDAs)... 252,236 253,002 251,874 249,554 248,946 251,186 252,360 250,789 1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised repurchase; for information on these liabilities at banks with assets of $1 billion or somewhat, eliminating some former reporters with less than $2 billion of assets more on Dec. 31, 1977, see table 1.13. and adding some new reporters with assets greater than $3 billion. 6. This is not a measure of equity capital for use in capital-adequacy analysis or 2. Includes U.S. government-issued or guaranteed certificates of participation for other analytic uses. in pools of residential mortgages. 7. Exclusive of loans and federal funds transactions with domestic commercial 3. Includes securities purchased under agreements to resell. banks. 4. Includes allocated transfer risk reserve. 8. Loans sold are those sold outright to a bank's own foreign branches, 5. Includes federal funds purchased and securities sold under agreements to nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • January 1989 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1988 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 1 Cash balances due from depository institutions 21,672 23,295 25,567 24,973 25,240 22,715 25,251 21,944 20,285 2 Total loans, leases and securities, net2 217,470 216,669 214,186 218,003 213,331 211,942 212,650 218,380 212,164 Securities 3 U.S. Treasury and government agency 0 0 0 0 0 0 0 0 0 4 Trading account 0 0 0 0 0 0 0 0 0 5 Investment account 14,615 15,240 14,943 15,253 15,399 15,056 15,074 15,306 15,198 6 Mortgage-backed securities4 5,662 5,663 5,662 5,728 5,906 5,935 55,,990055 66,,111199 66,,111100 All other maturing in 7 One year or less 2,274 2,527 2,446 2,605 2,656 2,249 2,337 2,377 2,306 8 Over one through five years 4,664 4,674 4,762 4,873 4,760 4,783 4,760 4,754 4,720 9 Over five years 2,015 2,376 2,073 2,046 2,076 2,088 2,070 2,057 2,062 10 Other securities3 0 0 0 0 0 0 0 0 0 11 Trading account3 0 0 0 0 0 0 0 0 0 12 Investment account 16,665 16,739 16,802 16,796 16,855 17,171 17,165 17,197 17,206 13 States and political subdivisions, by maturity 12,770 12,755 12,750 12,722 12,728 12,711 12,703 12,652 12,653 14 One year or less 1,127 1,210 1,218 1,223 1,230 1,229 1,230 1,224 1,226 15 Over one year 11,643 11,545 11,533 11,499 11,497 11,482 11,473 11,428 11,427 lb Other bonds, corporate stocks, and securities 3,895 3,984 4,052 4,073 4,127 4,460 4,462 4,545 4,553 1/ Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold5 28,923 28,430 26,723 30,548 26,444 25,177 25,200 29,831 26,759 19 To commercial banks 13,116 11,689 11,553 15,752 12,850 12,510 10,937 14,362 12,608 20 To nonbank brokers and dealers in securities 10,180 9,610 8,932 8,794 7,722 7,401 8,866 9,313 8,123 21 To others 5,626 7,131 6,239 6,001 5,871 5,267 5,397 6,156 6,028 22 Other loans and leases, gross 172,362 171,403 170,880 170,548 169,776 169,432 170,132 170,930 167,894 23 Other loans, gross 166,924 165,962 165,381 165,044 164,267 163,954 164,636 165,406 162,370 24 Commercial and industrial 56,194' 56,55C 56,820' 56,652' 56,544' 55,825 56,030 55,973 55,474 25 Bankers acceptances and commercial paper 444 457 409 390 355 363 376 368 352 26 All other 55,75C 56,092r 56,410' 56,262' 56,189' 55,462 55,654 55,606 55,122 27 U.S. addressees 55,285' 55,624' 56,010' 55,86C 55,781' 55,071 55,265 55,222 54,700 28 Non-U.S. addressees 465 468 401 402 409 392 388 383 422 29 Real estate loans 48,874 48,757 48,728 48,911 48,842 49,341 49,215 49,569 49,366 30 Revolving, home equity 3,135 3,138 3,158 3,187 3,098 3,107 3,128 3,128 3,142 31 All other 45,739 45,619 45,571 45,724 45,743 46,234 46,087 46,441 46,224 32 To individuals for personal expenditures 21,061' 21,112' 21,247' 21,337' 21,438' 21,120 20,632 20,431 20,449 33 To depository and financial institutions 21,338 21,438 20,783 20,342 19,430 19,985 21,098 20,132 19,501 34 Commercial banks in the United States 12,498 12,192 12,175 11,413 11,217 11,367 11,631 11,459 11,235 35 Banks in foreign countries 2,520 2,734 2,197 2,629 2,208 2,542 3,202 2,401 1,989 36 Nonbank depository and other financial institutions 6,320 6,512 6,411 6,300 6,005 6,076 6,265 6,272 6,277 37 For purchasing and carrying securities 5,782 4,488 4,872 4,578 4,866 4,360 4,434 5,761 4,804 38 To finance agricultural production 215 188 188 215 200 203 222 263 247 39 To states and political subdivisions 6,727 6,738 6,711 6,713 6,688 6,689 6,647 6,615 6,560 40 To foreign governments and official institutions 707 668 576 671 711 724 656 618 5% 41 AHother 6,026 6,022 5,455 5,624 5,546 5,707 5,702 6,044 5,372 42 Lease financing receivables 5,439 5,442 5,499 5,504 5,509 5,478 5,4% 5,524 5,525 4J LESS: Unearned income 1,572 1,582 1,597 1,610 1,630 1,624 1,621 1,582 1,598 44 Loan and lease reserve 13,524 13,562 13,565 13,531 13,513 13,269 13,300 13,301 13,295 45 Other loans and leases, net 157,266 156,260 155,718 155,406 154,633 154,538 155,212 156,046 153,001 46 All other assets 56,182r 56,535' 56,679' 57,928' 57,961' 61,586 63,863 62,012 63,701 47 Total assets 295,324' 296,499' 296,433' 300,904' 296,532' 296,244 301,764 302,336 296,150 Deposits 48 Demand deposits 54,954 54,811 53,682 52,054 55,992 53,516 55,520 53,195 50,013 49 Individuals, partnerships, and corporations 39,495 37,993 38,866 36,707 37,151 36,786 39,033 37,717 35,664 50 States and political subdivisions 586 655 621 592 550 910 590 597 550 51 U.S. government 173 192 560 184 357 1,032 243 834 467 52 Depository institutions in the United States 5,612 5,571 5,306 5,028 5,668 5,555 5,928 5,424 5,370 53 Banks in foreign countries 6,052 6,491 4,962 5,478 5,196 4,957 5,642 5,278 4,635 54 Foreign governments and official institutions 527 518 556 563 534 708 432 526 444 55 Certified and officers' checks 2,508 3,389 22,,880099 33,,550022 66,,553355 33,,556677 33,,665511 22,,881188 22,,888833 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,599 8,765 8,736 8,457 8,335 8,663 8,618 8,573 8,373 57 Nontransaction balances 106,131 106,374 105,746 106,079 106,425 107,490 108,884 109,499 109,263 58 Individuals, partnerships, and corporations 96,772 97,082 96,567 97,016 97,138 97,784 99,019 99,222 98,984 59 States and political subdivisions 6,942 6,964 6,969 6,886 7,125 7,580 7,703 8,108 8,131 60 U.S. government 29 28 30 30 30 29 27 29 32 61 Depository institutions in the United States 2,066 1,986 1,869 1,827 1,814 1,776 1,826 1,822 1,806 62 Foreign governments, official institutions, and banks 321 314 312 320 318 320 309 318 310 63 Liabilities for borrowed money 60,159' 66,825' 66,446' 72,550' 64,396' 70,285 72,084 72,342 69,315 64 Borrowings from Federal Reserve Banks 0 0 0 2,15c 0 1,595 0 0 0 65 Treasury tax-and-loan notes 2,034 1,648 2,799 7,212 7,213 3,556 4,728 5,163 5,928 66 All other liabilities for borrowed money8 58,126r 65,177' 63,647' 63,188' 57,183' 65,134 67,357 67,180 63,386 67 Other liabilities and subordinated notes and debentures 39,327 33,408 35,294 35,184 35,083 30,012 29,731 32,024 32,576 68 Total liabilities 269,17c 270,183' 269,904' 274,325' 270,232' 269,967 274,838 275,634 269,541 69 Residual (total assets minus total liabilities)9 26,154 26,316 26,528 26,579 26,300 26,277 26,927 26,702 26,609 MEMO 70 Total loans and leases (gross) and investments adjusted2, 206,951 207,931 205,620 205,979 204,406 202,959 205,002 207,442 203,215 71 Total loans and leases (gross) adjusted 175,671 175,952 173,875 173,930 172,152 170,732 172,764 174,939 170,811 72 Time deposits in amounts of $100,000 or more 38,341 38,527 38,268 38,901 38,889 39,974 40,062 40,924 40,941 73 U.S. Treasury securities maturing in one year or less 4,538 4,590 4,199 4,415 3,978 3,491 3,346 3,990 3,600 1. These data also appear in the Board's H.4.2 (504) release. For address, see 7. Includes trading account securities. inside front cover. 8. Includes federal funds purchased and securities sold under agreements to 2. Excludes trading account securities. repurchase. 3. Not available due to confidentiality. 9. Not a measure of equity capital for use in capital adequacy analysis or for 4. Includes U.S. government-issued or guaranteed certificates of participation other analytic uses. in pools of residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commer- Digitized for FRA5S. EInRcl udes securities purchased under agreements to resell. cial banks. http://fraser.stlou6is. fIendcl.uodregs /a llocated transfer risk reserve. Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A21 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS1 Assets and Liabilities Millions of dollars, Wednesday figures Account Aug. 31R Sept. T Sept. 14R Sept. 2Y Sept. 28R Oct. 5 Oct. 12 Oct. 19 Oct. 26 1 Cash and due from depository institutions ... 10,754 11,243 10,579 11,571 11,330 10,810 10,389 11,434 10,286 2 Total loans and securities 108,073 108,238 106,193 108,522 108,124 111,005 109,214 111,938 109,648 3 U.S. Treasury and government agency securities 8,075 8,050 8,130 8,228 7,885 7,978 8,035 7,756 7,760 4 Other securities. 7,719 7,302 7,309 7,271 7,153 7,178 7,186 7,320 7,315 5 Federal funds sold 8,785 9,309 7,131 8,712 7,463 8,064 7,583 10,198 9,290 6 To commercial banks in the United States. 6,726 7,095 4,876 6,457 4,842 5,690 5,201 7,972 6,852 7 To others 2,058 2,214 2,255 2,255 2,621 2,374 2,382 2,226 2,437 8 Other loans, gross 83,495 83,576 83,623 84,310 85,622 87,785 86,410 86,663 85,283 9 Commercial and industrial 56,116 56,236 56,042 56,140 56,570 58,023 57,492 56,877 56,758 10 Bankers acceptances and commercial paper 1,713 1,639 1,576 1,584 1,605 1,679 1,595 1,617 1,630 11 All other 54,403 54,598 54,466 54,556 54,966 56,344 55,897 55,259 55,128 12 U.S. addressees 52,473 52,673 52,586 52,838 53,179 54,609 54,277 53,678 53,460 13 Non-U.S. addressees 1,930 1,924 1,880 1,717 1,786 1,736 1,620 1,582 1,668 14 To financial institutions 15,380 15,491 15,868 16,194 16,922 17,212 16,615 17,759 16,460 15 Commercial banks in the United States.. 11,153 11,267 11,9% 12,289 12,906 13,114 12,330 13,462 12,372 16 Banks in foreign countries 876 1,070 912 924 964 1,025 974 1,247 1,133 17 Nonbank financial institutions 3,351 3,154 2,959 2,981 3,052 3,074 3,311 3,050 2,955 18 To foreign governments and official institutions 639 646 644 677 663388 639 664422 663377 554488 19 For purchasing and carrying securities 1,265 1,275 1,189 1,445 1,481 1,647 1,432 1,238 1,235 20 All other 10,095 9,927 9,880 9,854 10,011 10,263 10,230 10,152 10,281 21 Other assets (claims on nonrelated parties) .. 31,813 31,366 31,049 31,267 31,518 30,253 30,248 30,266 30,442 22 Net due from related institutions 13,836 16,084 15,076 18,884 15,910 17,264 16,149 17,907 18,220 23 Total assets 164,477 166,931 162,8% 170,244 166,883 169,331 166,000 171,546 168,5% 24 Deposits or credit balances due to other than directly related institutions 42,776 43,146 43,179 43,931 43,755 44,095 44,245 43,954 44,232 25 Transaction accounts and credit balances . 33,,335522 3,592 3,735 4,155 3,697 3,785 3,820 3,836 4,393 26 Individuals, partnerships, and corporations 2,169 2,182 2,509 2,464 2,540 2,459 2,471 2,486 2,613 27 Other , 1,183 1,410 1,226 1,690 1,157 1,326 1,349 1,350 1,780 28 Nontransaction accounts 39,423 39,554 39,444 39,776 40,058 40,310 40,425 40,118 39,838 29 Individuals, partnerships, and corporations 32,307 32,510 32,433 32,682 33,125 33,344 33,451 33,308 33,030 30 Other 7,116 7,044 7,011 7,094 6,933 6,966 6,974 6,809 6,808 31 Borrowings from other than directly related institutions 63,041 67,864 64,558 71,038 66,510 69,346 67,445 72,608 69,%2 32 Federal funds purchased 24,691 31,511 28,958 34,713 31,433 34,338 33,094 35,647 35,242 33 From commercial banks in the United States 10,777 16,553 13,743 18,599 16,465 19,425 16,299 18,337 19,373 34 From others 13,914 14,958 15,214 16,114 14,967 14,914 16,795 17,309 15,869 35 Other liabilities for borrowed money 38,350 36,353 35,601 36,325 35,077 35,007 34,351 36,% 1 34,720 36 To commercial banks in the United States 27,533 25,757 25,390 25,343 24,228 24,526 23,776 26,219 23,552 37 To others 10,817 10,5% 10,211 10,982 10,850 10,481 10,575 10,742 11,168 38 Other liabilities to nonrelated parties 32,907 32,660 32,413 32,135 32,486 31,423 31,387 31,439 31,354 39 Net due to related institutions 25,754 23,261 22,746 23,139 24,132 24,468 22,924 23,546 23,048 40 Total liabilities 164,477 166,931 162,8% 170,244 166,883 169,331 166,000 171,546 168,5% MEMO 41 Total loans (gross) and securities adjusted6 .. 90,194 89,875 89,320 89,775 90,376 92,202 91,683 90,504 90,424 42 Total loans (gross) adjusted 74,401 74,523 73,882 74,276 75,338 77,045 76,462 75,427 75,348 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 $750 million or more on June 30, 1980, plus those branches and agencies that had deposits. 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 • January 1989 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 11998855 11998866 DDeecc.. DDeecc.. DDeecc.. ''44 DDeecc.. June Sept. Dec. Mar. June Sept. 1 All holders—Individuals, partnerships, and corporations 293.5 302.7 321.0 363.6 340.2 339.0 343.5 328.6 346.5 n.a. 2 Financial business 32.8 31.7 32.3 41.4 36.6 36.5 36.3 33.9 37.2 n.a. 3 Nonfinancial business 161.1 166.3 178.5 202.0 187.2 188.2 191.9 184.1 194.3 n.a. 4 Consumer 78.5 81.5 85.5 91.1 90.1 88.7 90.0 86.9 89.8 n.a. 5 Foreign 3.3 3.6 3.5 3.3 3.2 3.2 3.4 3.5 3.4 n.a. 6 Other 17.8 19.7 21.2 25.8 23.1 22.4 21.9 20.3 21.9 n.a. Weekly reporting banks 1987 1988 11998833 11998844 11998855 11998866 DDeecc.. DDeecc..22 DDeecc.. ,,44 DDeecc.. June Sept. Dec. Mar.5 June Sept. 7 All holders—Individuals, partnerships, and corporations 146.2 157.1 168.6 195.1 179.3 179.1 183.8 181.8 191.5 185.3 8 Financial business 24.2 25.3 25.9 32.5 29.3 29.3 28.6 27.0 30.0 27.2 9 Nonfinancial business 79.8 87.1 94.5 106.4 94.8 96.0 100.0 98.2 103.1 101.5 10 Consumer 29.7 30.5 33.2 37.5 37.5 37.2 39.1 41.7 42.3 41.8 11 Foreign 3.1 3.4 3.1 3.3 3.1 3.1 3.3 3.4 3.3 3.1 12 Other 9.3 10.9 12.0 15.4 14.6 13.5 12.7 11.4 12.8 11.7 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 1983 1984 1985 1986 1987 Dec. Dec. Dec. Dec. Dec. Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 187,658 237,586 298,779 329,991 357,129 406,484 414,312 417,788 423,599 426,685 421,224 Financial companies1 Dealer-placed paper 2 Total 44,455 56,485 78,443 101,072 101,958 133,946 137,838 142,322 148,125 148,224 151,491 3 Bank-related (not seasonally adjusted) 22,,444411 22,,003355 11,,660022 22,,226655 11,,442288 11,,009933 11,,442222 11,,444488 11,,334400 983 901 Directly placed paper 4 Total 97,042 110,543 135,320 151,820 173,939 180,119 185,876 184,658 185,063 187,305 179,690 5 Bank-related (not seasonally adjusted) 35,566 42,105 44,778 40,860 43,173 45,703 47,719 45,294 44,975 47,818 43,887 6 Nonfinancial companies 46,161 70,558 85,016 77,099 81,232 92,419 90,598 90,808 90,411 91,156 90,043 Bankers dollar acceptances (not seasonally adjusted)5 7 Total 78,309 78,364 68,413 64,974 70,565 64,111 63,381 64,359 63,240 64,036 63,452 Holder 8 Accepting banks 9,355 9,811 11,197 13,423 10,943 10,295 9,412 9,734 9,655 9,551r 9,334 9 Own bills 8,125 8,621 9,471 11,707 9,464 8,929 8,588 8,861 8,702 8,664 8,400 10 Bills bought 1,230 1,191 1,726 1,716 1,479 1,366 825 873 953 888 934 Federal Reserve Banks 11 Own account 418 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 729 671 937 1,317 965 803 1,050 1,273 1,114 9,915 9,634 13 Others 67,807 67,881 56,279 50,234 58,658 53,013 52,918 53,351 52,471 53,493 53,154 Basis 14 Imports into United States 15,649 17,845 15,147 14,670 16,483 14,735 14,045 14,244 14,001 14,608 14,622 15 Exports from United States 16,880 16,305 13,204 12,960 15,227 14,724 14,534 14,606 14,676 14,345 13,946 16 All other 45,781 44,214 40,062 37,344 38,855 34,652 34,803 35,510 34,564 35,083 34,884 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 Period Av r e a r t a e g e Period Av r e a r t a e g e 1985—Jan. 15 10.50 1985. 9.93 1986 —Mar. 9.10 1987 —Sept. May 20 10.00 1986. 8.33 Apr. 8.83 Oct. June 18 9.50 1987. 8.21 May 8.50 Nov. June 8.50 Dec. 1986—Mar. 7 9.00 1985 —Jan. 10.61 July 8.16 Apr. 21 8.50 Feb. 10.50 Aug. 7.90 1988 —Jan. July 11 8.00 Mar. 10.50 Sept. 7.50 Feb. Aug. 26 7.50 Apr. 10.50 Oct.. 7.50 Mar. May 10.31 Nov. 7.50 Apr. 1987—Apr. 1 7.75 June 9.78 Dec. 7.50 May, May 1 8.00 July 9.50 June, 15 8.25 Aug. 9.50 1987 —Jan. 7.50 July Sept. 4 8.75 Sept. 9.50 Feb. 7.50 Aug. Oct. 7 9.25 Oct. 9.50 Mar. 7.50 Sept. 22 9.00 Nov. 9.50 Apr. 7.75 Oct. Nov. 5 8.75 Dec. 9.50 May 8.14 June 8.25 1988—Feb. 2 8.50 1986 —Jan. 9.50 July 8.25 May 11 9.00 Feb. 9.50 Aug. 8.25 July 14 9.50 Aug. 11 10.00 Nov. 28 10.50 NOTE. These data also appear in the Board's H.15 (519) and G. 13 (415) releases. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 DomesticN onfinancial Statistics • January 1989 1.35 INTEREST RATES Money and Capital Markets Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted. 1988 1988, week ending IInnssttrruummeenntt 11998855 11998866 11998877 July Aug. Sept. Oct. Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 MONEY MARKET RATES 1 Federal funds1'2 8.10 6.80 6.66 7.75 8.01 8.19 8.30 8.24 8.38 8.27 8.27 8.29 2 Discount window borrowing1, 1 7.69 6.32 5.66 6.00 6.37 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Commercial paper ' 3 1-month 7.93 6.61 6.74 7.72 8.09 8.09 8.12 8.13 8.10 8.09 8.13 8.16 4 3-month 7.95 6.49 6.82 7.82 8.26 8.17 8.24 8.18 8.21 8.21 8.25 8.29 5 6-month 8.00 6.39 6.85 7.90 8.36 8.23 8.24 8.24 8.22 8.21 8.24 8.28 Finance paper, directly placed4. 6 1-month 7.90 6.57 6.61 7.62 7.96 7.96 8.05 8.09 8.03 8.02 8.06 8.08 7 3-month 7.77 6.38 6.54 7.55 7.95 7.95 8.06 8.04 8.05 8.01 8.06 8.11 8 6-month ^ 7.74 6.31 6.37 7.19 7.57 7.71 7.80 7.76 7.81 7.80 7.80 7.80 Bankers acceptances ' 9 3-month 7.91 6.38 6.75 7.77 8.19 8.06 8.15 8.09 8.12 8.13 8.15 8.18 10 6-month 7.95 6.28 6.78 7.85 8.30 8.15 8.13 8.17 8.12 8.11 8.13 8.16 Certificates of deposit, secondary market 11 1-month 7.96 6.61 6.75 7.73 8.08 8.12 8.15 8.14 8.12 8.13 8.16 8.18 12 3-month 8.04 6.51 6.87 7.94 8.35 8.23 8.36 8.24 8.31 8.33 8.38 8.41 13 6-month 8.24 6.50 7.01 8.18 8.66 8.50 8.48 8.50 8.47 8.46 8.48 8.51 14 Eurodollar deposits. 3-month8 8.28 6.71 7.06 8.09 8.47 8.31 8.51 8.28 8.50 8.48 8.51 8.56 U.S. Treasury bills Secondary market 15 3-month 7.47 5.97 5.78 6.73 7.06 7.24 7.35 7.30 7.25 7.31 7.40 7.42 16 6-month 7.65 6.02 6.03 6.99 7.39 7.43 7.50 7.51 7.48 7.42 7.54 7.53 17 1-year 7.81 6.07 6.33 7.22 7.59 7.53 7.54 7.60 7.56 7.51 7.56 7.55 Auction average 18 3-month 7.47 5.98 5.82 6.73 7.02 7.23 7.34 7.23 7.23 7.32 7.36 7.45 19 6-month 7.64 6.03 6.05 6.97 7.36 7.43 7.50 7.48 7.46 7.46 7.55 7.54 20 1-year 7.80 6.18 6.33 7.04 7.40 7.60 7.57 7.48 n.a. n.a. n.a. 7.57 CAPITAL MARKET RATES U.S. Treasury notes and bonds" Constant maturities 21 1-year 8.42 6.45 6.77 7.75 8.17 8.09 8.11 8.18 8.13 8.07 8.12 8.13 22 2-year 9.27 6.86 7.42 8.28 8.63 8.46 8.35 8.52 8.39 8.33 8.36 8.34 23 3-year 9.64 7.06 7.68 8.44 8.77 8.57 8.43 8.62 8.48 8.44 8.43 8.42 24 5-year 10.12 7.30 7.94 8.66 8.94 8.69 8.51 8.73 8.57 8.53 8.52 8.47 25 7-year 10.50 7.54 8.23 8.91 9.13 8.87 8.69 8.90 8.75 8.71 8.69 8.66 26 10-year 10.62 7.67 8.39 9.06 9.26 8.98 8.80 8.99 8.83 8.81 8.80 8.77 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 9.14 9.32 9.06 8.89 9.08 8.94 8.91 8.88 8.88 Composite 29 Over 10 years (long-term) 10.75 8.14 8.64 9.20 9.33 9.06 8.89 9.09 8.94 8.90 8.89 8.88 State and local notes and bonds Moody's series14 30 Aaa 8.60 6.95 7.14 7.50 7.51 7.39 7.25 7.29 7.29 7.29 7.23 7.20 31 Baa 9.58 7.76 8.17 7.86 7.89 7.84 7.72 7.78 7.77 7.77 7.70 7.65 32 Bond Buyer series15 9.11 7.32 7.64 7.76 7.79 7.66 7.47 7.64 7.53 7.52 7.45 7.36 Corporate bonds Seasoned issues16 33 All industries 12.05 9.71 9.91 10.47 10.58 10.28 9.90 10.08 9.96 9.91 9.89 9.87 34 Aaa 11.37 9.02 9.38 9.96 10.11 9.82 9.51 9.67 9.58 9.54 9.49 9.44 35 Aa 11.82 9.47 9.68 10.26 10.37 10.06 9.71 9.88 9.76 9.71 9.68 9.68 36 A 12.28 9.95 9.99 10.55 10.63 10.34 9.99 10.15 10.03 9.97 9.99 9.97 37 Baa 12.72 10.39 10.58 11.11 11.21 10.90 10.41 10.59 10.45 10.41 10.41 10.39 38 A-rated, recently offered utility bonds 12.06 9.61 9.95 10.40 10.45 10.26 10.11 10.29 10.05 10.20 10.08 10.00 MEMO: Dividend/price ratio18 39 Preferred stocks 10.44 8.76 8.37 9.34 9.39 9.25 9.23 9.15 9.25 9.33 9.12 9.23 40 Common stocks 4.25 3.48 3.08 3.65 3.75 3.69 3.61 3.69 3.66 3.64 3.60 3.55 1. Weekly, monthly and annual figures are averages of all calendar days, places. Thus, average issuing rates in bill auctions will be reported using two where the rate for a weekend or holiday is taken to be the rate prevailing on the rather than three decimal places. preceding business day. The daily rate is the average of the rates on a given day 11. Yields are based on closing bid prices quoted by at least five dealers. weighted by 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 A25 1.36 STOCK MARKET Selected Statistics 1988 IInnddiiccaattoorr 11998855 11998866 11998877 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 108.09 136.00 161.70 145.13 149.88 148.46 144.99 152.72 152.12 149.25 151.47 156.36 2 Industrial 123.79 155.85 195.31 173.44 181.57 181.01 176.02 184.92 184.09 179.72 182.18 188.58 3 Transportation 104.11 119.87 140.39 126.09 135.15 133.40 127.63 136.02 136.49 132.52 136.27 141.83 4 Utility 56.75 71.36 74.29 72.89 71.16 69.35 68.66 72.25 71.49 70.67 71.83 74.19 5 Finance 114.21 147.19 146.48 124.36 125.27 121.66 120.35 129.04 129.99 130.77 133.15 136.09 6 Standard & Poor's Corporation (1941-43 = 10)' 186.84 236.34 286.83 258.13 265.74 262.61 256.12 270.68 269.05 263.73 267.97 277.40 7 American Stock Exchange (Aug. 31, 1973 = 50? ...'. 229.10 264.38 316.61 276.54 295.78 300.43 296.30 306.13 307.48 297.76 297.86 302.83 Volume of trading (thousands of shares) 8 New York Stock Exchange 109,191 141,385 188,647 184,688 176,189 162,518 153,906 195,772 166,916 144,668 145,702 162,631 9 American Stock Exchange 8,355 11,846 13,832 9,961 12,442 10,706 8,931 11,348 9,938 9,307 8,198 9,051 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 28,390 36,840 31,990 31,990 32,660 33,270 33,070 32,300 31,770 31,930 32,770 33,410 Free credit balances at brokers4 11 Margin-account3 2,715 4,880 4,750 4,555 4,615 4,395 4,380 4,580 4,485 4,655 4,725 5,065 12 Cash-account 12,840 19,000 15,640 14,695 14,355 13,965 14,150 14,460 14,340 14,045 14,175 14,880 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance "margin securities" (as defined in the regulations) when such credit is collateracompanies. With this change the index includes 400 industrial stocks (formerly lized by securities. Margin requirements on securities other than options are the 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 difference between the market value (100 percent) and the maximum loan value of financial. collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; effectively cutting previous readings in half. and Regulation X, effective Nov. 1, 1971. 3. Beginning July 1983, under the revised Regulation T, margin credit at On Jan. 1, 1977, the Board of Governors for the first time established in broker-dealers includes credit extended against stocks, convertible bonds, stocks Regulation T the initial margin required for writing options on securities, setting acquired through exercise of subscription rights, corporate bonds, and govern- it at 30 percent of the current market-value of the stock underlying the option. On ment securities. Separate reporting of data for margin stocks, convertible bonds, Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the and subscription issues was discontinued in April 1984. same as the option maintenance margin required by the appropriate exchange or 4. Free credit balances are in accounts with no unfulfilled commitments to the self-regulatory organization; such maintenance margin rules must be approved by brokers and are subject to withdrawal by customers on demand. the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC 5. New series beginning June 1984. approved new maintenance margin rules, permitting margins to be the price of the 6. These regulations, adopted by the Board of Governors pursuant to the option plus 15 percent of the market value of the stock underlying the option. Securities Exchange Act of 1934, limit the amount of credit to purchase and carry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 DomesticN onfinancial Statistics • January 1989 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1987 1988 AAccccoouunntt 11998855 11998866 Nov. Dec. Jan. Feb. Mar. Apr. May June' July' Aug. FSLIC-insured institutions 1 Assets 1,070,012 1,163,851 1,246,983 1,250,855 l,254,885r l,257,466r 1,261,581' 1,274,51C 1,285,647' 1,290,288 1,299,767 1,311,416 2 Mortgages 690,717 697,451 717,933 721,593 722,944r 723,856 725,625r 728,976' 733,542' 737,006 743,242 751,451 3 Mortgage-backed securities 115,525 158,193 200,039 201,828 201,732r 197,81r 197,889'' 202,742' 205,028' 207,569 208,266 210,331 4 Contra-assets to mortgage assets1 45,219 41,799 41,396 42,344 41,291r 40,836r 41,268' 39,348' 39,753' 40,064 40,102 38,899 5 Commercial loans 17,424 23,683 23,294 23,163 23,538 23,340 24,004' 24,243' 24,201' 24,585 24,861 25,055 6 Consumer loans 45,809 51,622 57,465 57,902 58,342 58,687 58,39c 59,126 60,255' 61,140 61,575 62,410 7 Contra-assets to nonmortgage loans'.... 2,521 3,041 3,430 3,467 3,580 3,524 3,628 3,512' 3,394' 3,478 3,344 3,114 8 Cash and investment securities 143,538 164,844 170,713 169,717 169,953r 174,106r 176,386' 177,98C 179,645' 177,590 178,613 175,844 9 Other3 104,739 112,898 122,367 122,462 123,247r 124,025r 124,184' 124,303' 125,823' 125,940 126,656 128,339 10 Liabilities and net worth . 1,070,012 1,163,851 1,246,983 1,250,855 l,254,885r l,257,466r 1,261,581' 1,274,51C 1,285,647' 1,290,288 1,299,767 1,311,416 It Savings capital 843,932 890,664 922,340 932,616 939,080r 946,790 958,471' 962,242' 963,686' 966,672 968,219 967,986 12 Borrowed money 157,666 196,929 247,461 249,917 246,088r 239,452r 237,663' 244,990' 250,695' 257,127 262,741 266,711 13 FHLBB 84,390 100,025 111,283 116,363 114,053 112,725 112,389 113,029 114,994 117,279 118,203 120,663 14 Other 73,276 96,904 136,178 133,554 132,035' 126,727' 125,274' 131,961' 135,701' 139,848 144,538 146,048 15 Other 21,756 23,975 27,404 21,941 23,873' 25,818r 22,555' 24,694' 27,23C 24,646 27,113 28,911 16 Net worth 46,657 52,282 49,777 46,382 45,845' 45,406' 42,892' 42,585' 43,736' 41,843 41,693 47,809 FSLIC-insured federal savings banks 17 Assets 131,868 210,562 279,221 284,272 284,303 295,951r 307,756' 311,434' 323,030' 329,721 333,611 357,623 18 Mortgages 72,355 113,638 161,014 164,013 163,915 171,592 178,26c 180,586' 186,818' 191,086 193,592 204,313 19 Mortgage-backed securities 15,676 29,766 45,237 45,826 46,171 46,687 47,979 49.06C 51,276' 52,225 52,595 55,685 20 Contra-assets to mortgage assets' 8,809 9,100 8,909 9,175 9,460 9,346' 9,736' 10,087 10,130 10,905 'M 6,540 6,504 6,496 6,971 7,378 7,531 7,639 7,906 7,920 8,624 22 Consumer loans 8,361 13,180 17,343 17,696 17,649 18,795 19,141 19,616 20,426 21,149 21,451 22,515 23 Contra-assets to nonmortgage loans 712 678 698 737 800 724 708 744 704 781 24 Finance leases plus 566 591 604 584 611 615 652 708 735 791 25 Cash and investment ... 33,965 35,347 34,645 35,718 38,224 38,273' 39,903' 40,274 40,842 44,790 26 Other 11,723 19,034 24,078 24,070 24,430 25,517r 26,424' 25,822' 26,76C 27,004 27,310 32,590 27 Liabilities and net worth . 131,868 210,562 279,221 284,272 284,303 295,951r 307,756' 311,434' 323,03C 329,721 333,611 357,623 28 Savings capital 103,462 157,872 199,114 203,196 204,329 214,169 224,169' 226,469 232,582 236,674 239,497 256,144 29 Borrowed money 19,323 37,329 58,277 60,716 59,206 59,704 61,552' 62,566' 66,816' 69,348 70,015 75,808 30 FHLBB 10,510 19,897 27,947 29,617 28,280 29,169 30,456 30,075 31,682 32,177 31,941 35,357 31 Other 8,813 17,432 30,330 31,099 30,926 30,535 31,096' 32,491' 35,134' 37,171 38,074 40,451 32 Other 2,732 4,263 6,350 5,324 5,838 6,602 6,089' 6,464' 7,196' 6,717 7,144 8,138 33 Net worth 6,351 11,098 15,481 15,036 14,930 15,477' 15,946' 16,087' 16,587' 16,886 16,859 17,432 Savings banks 34 Assets 216,776 236,866 260,600 259,643 258,628 259,224 262,100 262,269 264,507 269,369 272,459 272,327 Loans 35 Mortgage 110,448 118,323 137,044 138,494 137,858 139,108 140,835 139,691 143,235 147,366 149,115 150,293 36 Other 30,876 35,167 37,189 33,871 35,095 35,752 36,476 37,471 35,927 35,990 36,538 36,402 Securities 37 U.S. government 13,111 14,209 15,694 13,510 12,776 12,269 12,225 13,203 12,490 12,227 12,222 11,939 38 Mortgage-backed securities 19,481 25,836 31,144 32,772 32,241 32,423 32,272 31,072 31,861 32,669 33,017 32,982 39 State and local government 2,323 2,185 2,046 2,003 1,994 2,053 2,033 2,013 1,933 1,877 1,868 1,929 40 Corporate and other . 21,199 20,459 17,583 18,772 18,780 18,271 18,336 18,549 18,298 18,332 18,376 18,134 41 Cash 6,225 6,894 5,063 5,864 4,841 5,002 4,881 5,237 5,383 5,094 5,449 4,906 42 Other assets 13,113 13,793 14,837 14,357 15,043 14,346 15,042 15,033 15,380 15,814 15,874 15,742 43 Liabilities 216,776 236,866 260,600 259,643 258,628 259,224 262,100 262,269 264,507 269,369 272,459 272,327 44 Deposits 185,972 192,194 202,030 201,497 199,545 200,391 203,407 203,273 205,692 209,227 210,751 210,399 45 Regular 181,921 186,345 196,724 196,037 194,322 195,336 198,273 197,801 200,098 203,434 204,851 204,866 46 Ordinary savings .. 33,018 37,717 42,493 41,959 41,047 41,234 41,867 41,741 42,403 43,282 43,228 42,651 47 Time 103,311 100,809 112,231 112,429 112,781 113,751 115,529 115,887 117,297 119,815 121,356 122,959 48 Other 4,051 5,849 5,306 5,460 5,223 5,055 5,134 5,472 5,594 5,793 5,900 5,533 49 Other liabilities 17,414 25,274 36,167 35,720 36,836 35,787 35,737 35,827 35,836 36,779 37,584 37,824 50 General reserve accounts 12,823 18,105 21,133 20,633 20,514 20,894 21,024 21,109 21,179 21,385 21,559 21,405 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.37—Continued 1987 1988 AAccccoouunntt 11998855 11998866 Nov. Dec. Jan. Feb. Mar. Apr. May Juner July' Aug. Credit unions3 51 Total assets/liabilities and capital 118,010 147,726 169,111 169,175 172,456 172,345 173,276 52 Federal 77,861 95,483 109,797 109,913 112,595 112,573 113,068 53 State 40,149 52,243 59,314 59,262 59,855 59,772 60,208 54 Loans outstanding. 73,513 86,137 101,965 103,271 105,704 105,800 107,065 55 Federal 47,933 55,304 65,732 66,431 68,213 68,658 69,626 56 State 25,580 30,833 36,233 36,840 37,491 37,142 37,439 57 Savings 105,963 134,327 156,045 155,105 157,764 158,186 159,314 58 Federal 70,926 87,954 101,847 101,048 103,129 103,347 104,256 59 State 35,037 46,373 54,198 54,057 54,635 54,839 55,058 Life insurance companies 60 Assets 825,901 937,551 1,024,460 1,033,170 1,042,350 1,052,645 1,065,549 1,075,541 1,094,827 1,105,546 1,113,547 Securities 61 Government 75,230 84,640 91,227 91,302 91,682 92,497 92,408 93,946 86,711 87,160 88,218 62 United States6. 51,700 59,033 65,186 64,551 64,922 65,534 65,218 66,749 58,988 59,351 60,244 63 State and local 9,708 11,659 11,539 11,758 11,749 11,859 12,033 11,976 11,016 11,114 11,102 64 Foreign" 13,822 13,948 14,502 14,993 15,011 15,104 15,157 15,221 16,707 16,695 16,872 65 Business 423,712 492,807 548,767 553,486 563,019 571,070 580,392 587,846 606,445 614,052 618,742 66 Bonds 346,216 401,943 459,537 461,942 469,207 476,448 484,403 490,285 503,728 509,105 514,926 67 Stocks 77,496 90,864 89,230 91,544 93,812 94,622 95,989 97,561 102,717 104,947 103,816 68 Mortgages 171,797 193,842 208,839 212,375 212,637 213,182 214,815 215,383 219,012 220,870 221,990 69 Real estate 28,822 31,615 33,538 34,016 34,178 34,503 34,845 34,964 35,484 35,545 35,737 70 Policy loans 54,369 54,055 53,334 53,313 53,265 52,720 52,604 52,568 53,013 53,107 53,142 71 Other assets 71,971 80,592 88,755 88,678 87,569 88,673 90,499 90,834 94,162 94,812 95,718 1. Contra-assets are credit-balance accounts that must be subtracted from the NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all institutions corresponding gross asset categories to yield net asset levels. Contra-assets to insured by the FSLIC and based on the FHLBB thrift Financial Report. mortgage loans, contracts, and pass-through securities include loans in process, FSLIC-insured federal savings banks: Estimates by the FHLBB for federal unearned discounts and deferred loan fees, valuation allowances for mortgages savings banks insured by the FSLIC and based on the FHLBB thrift Financial "held for sale," and specific reserves and other valuation allowances. Report. 2. Contra-assets are credit-balance accounts that must be subtracted from the Savings banks: Estimates by the National Council of Savings Institutions for all corresponding gross asset categories to yield net asset levels. Contra-assets to savings banks in the United States and for FDIC-insured savings banks that have nonmortgage loans include loans in process, unearned discounts and deferred loan converted to federal savings banks. fees, and specific reserves and valuation allowances. Credit unions: Estimates by the National Credit Union Administration for 3. Holding of stock in Federal Home Loan Bank and Finance leases plus federally chartered and federally insured state-chartered credit unions serving interest are included in "Other" (line 9). natural persons. 4. Excludes checking, club, and school accounts. Life insurance companies: Estimates of the American Council of Life Insurance 5. Data include all federally insured credit unions, both federal and state for all life insurance companies in the United States. Annual figures are annualchartered, serving natural persons. statement asset values, with bonds carried on an amortized basis and stocks at 6. Direct and guaranteed obligations. Excludes federal agency issues not year-end market value. Adjustments for interest due and accrued and for guaranteed, which are shown in the table under "Business" securities. differences between market and book values are not made on each item separately 7. Issues of foreign governments and their subdivisions and bonds of the but are included, in total, in "other assets." International Bank for Reconstruction and Development. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • January 1989 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1988 111999888666 111999888777 111999888888 May June July Aug. Sept. Oct. U.S. budget1 1 Receipts, total 769,091 854,143 908,953 47,691 99,205 60,690 69,479 97,803 63,646 2 On-budget 568,862 640,741 667,462 30,205 77,643 40,980 51,015 75,586 45,847 Off-budget 200,228 213,402 241,491 17,486 21,562 19,710 18,464 22,217 17,799 4 Outlays, total 990,258 1,004,586 1,064,055 83,435 90,071 83,634 92,561 87,588 91,086 5 On-budget 806,760 810,754 861,364 66,389 72,888 66,818 74,756 70,071 73,945 6 Off-budget 183,498 193,832 202,691 17,046 17,184 16,816 17,805 17,518 17,141 7 Surplus, or deficit (-), total -221,167 -150,444 -155,102 -35,744 -22,583 9,134 -22,944 -23,082 -27,440 8 On-budget -237,898 -170,014 -193,901 -36,184 4,755 -25,838 -23,741 5,515 -28,097 9 Off-budget 16,731 19,570 38,800 440 4,379 2,894 659 4,699 658 Source of financing (total) 10 Borrowing from the public 236,187 150,070 166,171 13,005 11,391 3,665 23,370 14,665 10,716 11 Operating cash (decrease, or increase (-)l -14,324 -5,052 -7,963 22,638 -20,638 15,696 10,954 -31,444 13,748 12 Other5 -696 5,426 -3,106 -1,478 113 3,583 -11,242 6,564 2,976 MEMO 13 Treasury operating balance (level, end of period) 31,384 36,436 44,398 33,106 39,604 23,908 12,954 44,398 30,650 14 Federal Reserve Banks 7,514 9,120 13,024 6,383 9,762 3,910 4,390 13,024 6,151 15 Tax and loan accounts 23,870 27,316 31,375 26,723 29,842 19,998 8,564 31,375 24,499 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetae 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 1987 1988 1988 1987 11998888 H2 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources 854,143 908,953 387,524 447,282 421,712 476,115 69,479 97,803 63,646 ? Individual income taxes, net 392,557 401,181 183,156 205,157 192,575 207,659 31,942 41,784 31,287 3 Withheld 322,463 341,435 164,071 156,760 170,203 169,300 30,330 27,209 28,824 4 Presidential Election Campaign Fund 33 33 4 30 4 28 1 1 0 Nonwithheld 142,957 132,199 27,733 112,421 31,223 101,614 2,956 16,793 3,430 6 Refunds 72,8% 72,487 8,652 64,052 8,853 63,283 1,346 2,219 967 Corporation income taxes 7 Gross receipts 102,859 109,683 42,108 52,396 52,821 58,002 2,377 21,380 3,789 8 Refunds 18,933 15,487 8,230 10,881 7,119 8,706 916 712 1,995 9 Social insurance taxes and contributions, net 303,318 334,335 134,006 163,519 143,755 181,058 28,373 28,694 23,848 10 Employment taxes and contributions 273,028 305,093 122,246 146,696 130,388 164,412 23,477 27,991 2222,,440000 11 Self-employment taxes and contributions 13,987 17,691 1,338 12,020 1,889 14,839 380 22,,332266 0 12 Unemployment insurance 25,575 24,584 9,328 14,514 10,977 14,363 4,545 285 1,101 13 Other net receipts4 4,715 4,659 2,429 2,310 2,390 2,284 351 419 347 14 Excise taxes 32,457 35,540 15,947 15,845 17,680 16,440 3,490 3,158 3,134 15 Customs deposits 15,085 16,198 7,282 7,129 7,993 7,851 1,650 1,367 1,381 16 Estate and gift taxes 7,493 7,594 3,649 3,818 3,610 3,863 661 678 662 17 Miscellaneous receipts5 19,307 19,909 9,605 10,299 10,399 9,950 1,902 1,454 1,540 OUTLAYS 18 AH types 1,004,586 1,064,054 506,556 503,267 532,839 513,210 92,561 87,588 91,086 19 National defense 281,999 290,349 138,544 142,886 146,995 143,080 24,532 21,941 25,938 70 International affairs 11,649 10,469 8,938 4,374 4,487 7,150 833 -691 2,176 21 General science, space, and technology .... 9,216 10,876 4,594 4,324 5,469 5,361 930 702 1,136 22 Energy 4,115 2,342 2,446 2,335 1,468 555 282 116 366 23 Natural resources and environment 13,363 14,538 7,141 6,175 7,590 6,776 1,213 1,625 1,451 24 Agriculture 27,356 17,210 15,660 11,824 14,640 7,872 -152 -414 3,025 75 Commerce and housing credit 6,182 19,064 3,764 4,893 3,852 5,951 4,077 6,076 477 76 Transportation 26,228 27,196 14,745 12,113 14,096 12,700 2,696 2,568 2,504 27 Community and regional development 5,051 5,577 3,651 3,108 2,075 2,765 284 743 648 28 Education, training, employment, and social services 29,724 30,856 16,209 14,182 15,592 15,451 3,033 22,,558888 22,,664444 79 Health 39,968 44,482 18,795 20,318 20,750 22,643 3,977 3,823 3,994 30 Social security and medicare 282,473 297,828 138,299 142,864 158,469 135,322 25,692 25,215 23,951 31 Income security 123,250 130,174 59,979 62,248 61,201 65,555 10,581 11,226 8,855 37 Veterans benefits and services 26,782 29,248 14,190 12,264 14,956 13,241 2,249 3,085 1,857 33 Administration of justice 7,548 9,205 3,413 3,626 4,291 4,761 900 710 865 34 General government 5,948 8,552 1,860 3,344 3,560 4,337 814 796 934 35 General-purpose fiscal assistance 1,621 966 2,886 337 1,175 448 0 0 0 36 Net interest 138,570 151,711 66,226 70,110 71,933 76,098 13,661 12,371 13,014 37 Undistributed offsetting receipts' -36,455 -36,576 -16,475 -19,102 -17,684 -17,766 -3,041 -4,892 -2,751 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 • January 1989 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 1985 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 Nonmarketable' 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 9 Foreign issues 9.1 7.5 4.7 4.0 4.3 4.0 6.1 5.7 10 Government 9.1 7.5 4.7 4.0 4.3 4.0 6.1 5.7 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes... 73.1 78.1 90.6 99.2 97.0 99.2 102.3 104.5 13 Government account series3 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 289.6 348.9 403.1 477.6 457.2 477.6 490.8 534.2 16 Federal Reserve Banks 160.9 181.3 211.3 222.6 211.9 222.6 217.5 227.6 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 183.4 192.2 238.3 253.3 251.3 253.3 260.7 263.0 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 international 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 Aug/ Sept/ Oct. Sept. 2lr Sept. 28r Oct. 5 Oct. 12 Oct. 19 Oct. 26 Immediate delivery2 1 U.S. Treasury securities 75,331 95,445 110,052 100,109 99,232 109,791 84,709 104,499 104,469 112200,,448877 110077,,996622 110088,,882288 By maturity ? Bills 32,900 34,247 37,924 29,541 27,406 29,606 25,997 29,807 27,640 32,663 2277,,993399 3300,,224499 3 Other within 1 year 1,811 2,115 3,272 3,463 3,249 3,285 2,759 3,999 4,389 3,122 3,219 2,632 4 1-5 years 18,361 24,667 27,918 28,558 28,204 28,691 23,001 36,615 27,874 30,222 27,683 31,348 5 5-10 years 12,703 20,456 24,014 23,759 25,854 30,419 21,001 22,122 28,703 34,950 32,040 26,837 6 Over 10 years 9,556 13,961 16,923 14,789 14,519 17,791 11,950 11,955 15,864 19,531 17,082 17,762 By type of customer 7 U.S. government securities dealers 3,336 3,670 2,936 2,328 2,669 3,227 2,280 33,,008877 3,794 33,,330033 33,,005555 33,,550033 8 U.S. government securities brokers 36,222 49,558 61,539 58,577 58,674 65,612 50,770 62,049 59,544 71,537 6655,,668899 6644,,%%33 9 All others3 35,773 42,218 45,576 39,204 37,888 40,951 31,658 39,362 41,131 45,645 39,217 40,361 10 Federal agency securities 11,640 16,748 18,087 13,952 15,473 17,633 16,170 14,924 18,004 17,742 19,581 15,828 11 Certificates of deposit 4,016 4,355 4,112 3,053 3,128 3,646 2,984 3,028 3,497 4,383 3,483 3,564 17 Bankers acceptances 3,242 3,272 2,965 1,834 1,994 2,186 1,795 1,939 2,288 2,513 2,068 2,034 13 Commercial paper 12,717 16,660 17,135 23,413 26,416 28,682 27,773 25,571 29,622 29,473 28,234 26,399 Futures contracts' 14 Treasury bills 5,561 3,311 3,233 2,593 2,555 2,772 1,879 2,179 1,7% 3,629 22,,559933 22,,005599 15 Treasury coupons 6,085 7,175 8,964 9,485 9,393 10,684 8,292 8,021 11,187 10,383 10,208 10,369 16 Federal agency securities 252 16 5 0 0 0 0 0 0 0 0 0 Forward transactions5 17 U.S. Treasury securities 1,283 1,876 2,029 2,283 1,479 1,769 2,015 2,106 813 1,748 22,,556688 22,,112288 18 Federal agency securities 3,857 7,831 9,290 8,701 7,601 8,013 7,294 5,649 6,283 10,220 10,462 6,394 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 secunties 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 DomesticN onfinancial Statistics • January 1989 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1988 1988 IItteemm 11998855 11998866 11998877 Aug. Sept. Oct. Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Net immediate2 1 U.S. Treasury securities 7,391 12,912 -6,216 -31,781 -26,759r -25,793 —27,809' -27,322 -25,883 -27,790 -26,592 2 Bills 10,075 12,761 4,317 1,658 6,816r 3,692 8,317 3,810 5,086 1,814 4,064 3 Other within 1 year 1,050 3,706 1,557 -2,389 -3,811 -5,534 -3,943 -5,056 -5,509 -5,806 -5,438 4 1-5 years 5,154 9,146 649 -6,234 -2,8% 855 -4,864r 1,493 1,320 -160 -701 5 5-10 years -6,202 -9,505 -6,564 -13,383 -13,750r -11,191 -14,127'' -13,718 -13,569 -10,315 -9,915 6 Over 10 years -2,686 -3,197 -6,174 -11,432 -13,117 -13,615 -13,191 -13,850 -13,212 -13,323 -14,602 7 Federal agency securities 22,860 32,984 31,910 27,844 29,023'' 30,169 28,886'' 29,398 29,252 30,608 30,552 8 Certificates of deposit 9,192 10,485 8,188 8,476 8,200 8,262 8,191 8,052 8,322 8,080 8,158 9 Bankers acceptances 4,586 5,526 3,661 1,963 1,786 2,247 1,798 1,933 2,238 2,148 2,314 10 Commercial paper 5,570 8,089 7,496 5,829 6,830 6,770 7,001 7,400 6,%3 7,035 6,340 Futures positions 11 Treasury bills -7,322 -18,059 -3,373 1,157 -4,049 -4,385 -4,710 -2,849 -3,955 -4,803 -4,165 12 Treasury coupons 4,465 3,473 5,988 8,476 7,745r 6,532 7,600 7,538 5,838 6,128 7,556 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 -1,211 641 -347 -969 -1,501 -707 -42 -1,375 -1,887 15 Federal agency securities -9,420 -11,840 -18,817 -17,258 -16,988r -17,558 -16,563r -17,463 -17,369 -17,359 -17,670 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 68,035 98,954 124,791 142,120 139,167 149,450 132,608 146,913 148,541 152,285 146,437 17 Term , 80,509 108,693 148,033 180,855 185,275 193,290 190,187 184,216 187,466 189,152 197,229 Repurchase agreements5 18 Overnight and continuing 101,410 141,735 170,840 174,006 178,459 189,508 172,412 187,020 189,360 193,747 184,577 19 Term 70,076 102,640 120,980 134,608 134,107 145,288 142,523 135,606 138,246 138,838 154,170 1. OData 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 May June July Aug. Sept. 1 Federal and federally sponsored agencies 271,220 293,905 307,361 341,386 352,216 354,446 355,810 n.a. n.a. 2 Federal agencies 35,145 36,390 36,958 37,981 36,430 36,361 36,465 n.a. n.a. 3 Defense Department' 142 71 33 13 11 11 11 11 11 4 Export-Import Bank2' 15,882 15,678 14,211 11,978 11,494 11,232 11,232 11,232 11,232 5 Federal Housing Administration 133 115 138 183 105 116 116 115 120 6 Government National Mortgage Association participation certificates 2,165 2,165 2,165 1,615 830 883300 830 n.a. n.a. 7 Postal Service6 1,337 1,940 3,104 6,103 5,842 5,842 5,842 5,842 5,842 8 Tennessee Valley Authority 15,435 16,347 17,222 18,089 18,148 18,330 18,434 18,494 18,511 9 United States Railway Association6 51 74 85 0 0 0 0 0 0 10 Federally sponsored agencies7 237,012 257,515 270,553 303,405 315,786 318,085 319,345 324,110 328,246 11 Federal Home Loan Banks 65,085 74,447 88,752 115,725 117,864 117,773 119,409 121,266 126,011 12 Federal Home Loan Mortgage Corporation 10,270 11,926 13,589 17,645 19,495 17,619 17,844 19,652 18,368 N Federal National Mortgage Association 83,720 93,896 93,563 97,057 102,515 104,757 104,751 105,730 105,986 14 Farm Credit Banks8 72,192 68,851 62,478 55,275 54,578 55,779 54,538 53,582F 53,764 15 Student Loan Marketing Association9 5,745 8,395 12,171 16,503 18,434 19,257 19,453 19,680 19,917 16 Financing Corporation1" n.a. n.a. n.a. 1,200 2,900 2,900 2,900 3,750 3,750 17 Farm Credit Financial Assistance Corporation" n.a. n.a. n.a. n.a. n.a. n.a. 450 450 450 MEMO 18 Federal Financing Bank debt12 145,217 153,373 157,510 152,417 149,986 149,833 149,937 149,809 114466,,115511 Lending to federal and federally sponsored agencies 19 Export-Import Bank5 15,852 15,670 14,205 11,972 1111,,448888 1111,,222266 1111,,222266 1111,,222266 1100,,995588 70 Postal Service 1,087 1,690 2,854 5,853 5,592 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 4,910 22 Tennessee Valley Authority 13,710 14,622 15,797 16,709 16,768 16,950 17,054 17,114 17,131 23 United States Railway Association6 51 74 85 0 0 0 0 0 0 Other Lending13 74 Farmers Home Administration 58,971 64,234 65,374 59,674 59,674 59,674 59,674 5599,,446644 5588,,449966 75 Rural Electrification Administration 20,693 20,654 21,680 21,191 19,218 19,204 19,206 19,225 19,205 26 29,853 31,429 32,545 32,078 32,306 32,247 32,245 32,248 29,859 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. I, 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 Domestic Nonfinancial Statistics • January 1989 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1988 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998855 11998866 11998877 Mar. Apr. May June July Aug. Sept/ Oct. 1 All issues, new and refunding1 214,189 147,011 102,407 9,821 5,847 7,846 13,912 9,746 6,966 9,669 10,046 Type of issue 2 General obligation 52,622 46,346 30,589 2,776 1,707 3,085 4,237 1,959 2,472 2,370 1,932 i Revenue 161,567 100,664 71,818 7,045 4,140 4,761 9,675 7,788 4,494 7,299 8,114 Type of issuer 4 State 13,004 14,474 10,102 739 441 913 1,349 140 576 1,206 732 5 Special district and statutory authority2 134,363 89,997 65,460 6,310 4,078 4,625 8,629 6,752 3,749 6,407 6,946 6 Municipalities, counties, and townships 78,754 42,541 26,845 2,772 1,328 2,308 3,934 2,854 2,641 2,056 2,368 7 Issues for new capital, total 156,050 83,490 56,789 2,401 1,476 2,334 2,352 2,079 2,318 2,783 2,840 Use of proceeds 8 Education 16,658 12,307 9,524 933 911 1,316 1,320 1,699 694 1,351 489 9 Transportation 12,070 7,246 3,677 559 215 452 858 1,446 265 732 481 10 Utilities and conservation 26,852 14,594 7,912 1,016 429 580 635 225 613 694 1,223 11 Social welfare 63,181 11,353 11,106 1,218 1,099 694 2,060 1,222 1,242 2,358 2,493 12 Industrial aid 12,892 6,190 7,474 105 298 248 434 128 460 280 330 li Other purposes 24,398 31,802 18,020 2,213 9% 1,900 3,628 3,666 2,043 1,661 1,742 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 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998855 11998866 11998877 Feb. Mar. Apr. May June July Aug. Sept. 1 All issues' 239,015 423,726 392,156 22,439 25,902 21,227 23,413 30,043 17,982 19,269r 23,575 2 Bonds2 203,500 355,293 325,648 18,549 20,815 18,515 19,382 25,748 12,844 15,934r 20,688 Type of offering 3 Public, domestic 119,559 231,936 209,279 16,758 19,827 16,202 17,496 22,753 10,850 14,595r 18,000 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 42,596 24,299 1,791 988 2,313 1,886 2,995 1,994 1,339 2,700 Industry group 6 Manufacturing 63,973 91,548 61,666 3,151 3,482 4,513 4,206 5,305 2,204 3,476' 3,739 7 Commercial and miscellaneous 17,066 40,124 49,327 1,416 1,007 771 1,446 2,281 1,531 2,227' 1,035 8 Transportation 6,020 9,971 11,974 200 1,017 890 184 580 100 0 150 9 Public utility 13,649 31,426 23,004 1,718 2,259 1,170 1,929 1,707 540 298 856 10 Communication 10,832 16,659 7,340 101 115 411 69 925 577 29 1,064 11 Real estate and financial 91,958 165,564 172,343 11,962 12,935 10,760 11,546 14,949 7,893 9,903' 13,843 12 StocksJ 35,515 68,433 66,508 3,890 5,087 2,712 4,031 4,295 5,138 3,335' 2,887 Type 13 Preferred 6,505 11,514 10,123 376 625 241 285 501 407 498' 459 14 Common 29,010 50,316 43,228 3,513 4,462 2,471 3,746 3,794 4,731 2,837' 2,448 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 2% 256 318 1,080 1,676 296 538 244 17 Commercial and miscellaneous 9,149 10,617 12,888 44 99 276 157 522 2,073 347' 437 18 Transportation 1,544 2,427 2,439 474 32 150 15 51 0 72 5 19 Public utility 1,966 4,020 4,322 142 93 238 59 207 20 135 215 20 Communication 978 1,825 1,458 0 63 109 78 13 20 3 23 21 Real estate and financial 16,178 34,517 31,521 2,933 4,544 1,621 2,642 1,826 2,729 2,240' 1,963 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 Feb. Mar. Apr. May June July Aug/ Sept. INVESTMENT COMPANIES1 1 Sales of own shares2 411,751 381,260 23,265 24,589 23,162 19,579 22,503 20,728 20,595 19,891 2 Redemptions of own shares3 239,394 314,252 20,914 23,968 25,000 21,412 23,168 20,561 22,836 721,343 3 Net sales 172,357 67,008 2,351 620 -1,828 -1,833 -665 167 -2,242 -1,452 4 Assets4 424,156 453,842 481,232 473,206 473,321 468,735 481,120 477,076 465,822 475,841 5 Cash position5 30,716 38,006 41,232 43,561 45,307 45,003 43,229 44,015 45,229 46,759 6 Other 393,440 415,836 439,995 426,645 428,014 423,732 437,891 433,061 420,595 429,082 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 282.3 298.8 310.4 293.9 298.3 305.2 322.0 316.1 316.2 326.5 323.7 2 Profits before tax 224.2 236.3 276.7 252.1 261.8 273.7 289.4 281.9 286.2 305.9 307.7 3 Profits tax liability 96.4 106.6 133.8 114.3 126.3 132.6 140.0 136.2 136.9 143.2 144.6 4 Profits after tax 127.8 129.8 142.9 137.9 135.5 141.1 149.5 145.7 149.4 162.7 163.1 5 Dividends 83.2 88.2 95.5 89.8 91.7 94.0 97.0 99.3 101.3 103.1 105.7 6 Undistributed profits 44.5 41.5 47.4 48.1 43.8 47.0 52.4 46.4 48.1 59.6 57.5 7 Inventory valuation -1.7 8.3 -18.0 -8.1 -14.4 -20.0 -19.5 -18.2 -19.4 -27.4 -29.0 8 Capital consumption adjustment 59.8 54.1 51.7 49.8 50.8 51.5 52.1 52.4 49.4 48.0 45.1 SOURCE. Survey of Current Business (Department of Commerce). 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1987 1988 IInndduussttrryy 11998866 11998877 1199888811 Q1 Q2 Q3 Q4 Q1 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.% 72.28 75.70 76.87 80.59 79.09 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 1122..6622 10.38 11.02 11.81 12.32 12.59 13.26 12.74 11.89 Transportation 5 Railroad 6.66 5.92 7.05 5.68 5.84 6.07 6.12 6.92 7.01 7.07 7.19 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 other2 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

A36 Domestic Nonfinancial Statistics • January 1989 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1986 1987 AAccccoouunntt 11998833 11998844 11998855 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer 83.3 89.9 111.9 123.4 135.3 134.7 131.1 134.7 141.6 141.1 2 Business 113.4 137.8 157.5 166.8 159.7 173.4 181.4 188.1 188.3 207.6 3 Real estate 20.5 23.8 28.0 29.8 31.0 32.6 34.7 36.5 38.0 39.5 4 Total 217.3 251.5 297.4 320.0 326.0 340.6 347.2 359.3 367.9 388.2 Less: 5 Reserves for unearned income 30.3 33.8 39.2 40.7 42.4 41.5 40.4 41.2 42.5 45.3 6 Reserves for losses 3.7 4.2 4.9 5.1 5.4 5.8 5.9 6.2 6.5 6.8 7 Accounts receivable, net 183.2 213.5 253.3 274.2 278.2 293.3 300.9 311.9 318.9 336.1 8 All other 34.4 35.7 45.3 49.5 60.0 58.6 59.0 57.7 64.5 58.2 9 Total assets 217.6 249.2 298.6 323.7 338.2 351.9 359.9 369.6 383.4 394.3 LIABILITIES 10 Bank loans 18.3 20.0 18.0 16.3 16.8 18.6 17.2 17.3 15.9 16.4 11 Commercial paper 60.5 73.1 99.2 108.4 112.8 117.8 119.1 120.4 124.2 128.4 Debt 12 Other short-term 11.1 12.9 12.7 15.8 16.4 17.5 21.8 24.8 26.9 28.0 13 Long-term 67.7 77.2 94.4 106.9 111.7 117.5 118.7 121.8 128.2 137.1 14 All other liabilities 31.2 34.5 41.5 40.9 45.0 44.1 46.5 49.1 48.6 52.8 15 Capital, surplus, and undivided profits 28.9 31.5 32.8 35.4 35.6 36.4 36.6 36.3 39.5 31.5 16 Total liabilities and capital 217.6 249.2 298.6 323.7 338.2 351.9 359.9 369.6 383.4 394.3 1. NOTE. Components may not add to totals because of rounding. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1 Millions of dollars, seasonally adjusted 1988 TTyyppee 11998855 11998866 Apr. May June July Aug. Sept. 1 Total 156,297 171,966 205,869 218,914 220,304 222,133 223,706 223,958'' 230,474 Retail financing of installment sales 2 Automotive (commercial vehicles) 20,660 25,952 35,674 37,619 37,219 37,519 37,682 37,519 37,120 3 Business, industrial, and farm equipment 22,483 22,950 24,987 27,263 27,081 27,548 27,428 27,603 27,569 Wholesale financing 4 Automotive 23,988 23,419 31,059 27,361 28,260 28,731 28,449 27,721 32,732 5 Equipment 4,568 5,423 5,693 5,429 5,237 5,557 5,654 5,803 5,949 6 All other 6,809 7,079 8,408 8,311 8,414 8,481 8,458 8,531 8,738 Leasing 7 Automotive 16,275 19,783 21,943 23,458 23,690 24,076 24,400 24,370 23,861 8 Equipment 34,768 37,833 43,002 51,092 52,126 52,365 52,803 53,671 55,400 9 Loans on commercial accounts receivable and factored commercial accounts receivable 15,765 15,959 18,024 18,789 18,700 18,595 19,095 19,132 19,386 10 All other business credit 10,981 13,568 17,079 19,592 19,578 19,260 19,736 19,609 19,719 Net change (during period) 11 Total 19,607 15,669 3,040 2,907 1,390 1,829 1,573 252' 6,515 Retail financing of installment sales 12 Automotive (commercial vehicles) 5,067 5,292 1,220 705 -400 300 163 -163 -399 13 Business, industrial, and farm equipment -363 467 223 182 -181 467 -120 175 -35 Wholesale financing 14 Automotive 5,423 -569 158 32 899 471 -282 -728 5,011 15 Equipment -867 855 -101 178 -192 320 97 149 146 16 All other 1,069 270 257 -36 103 67 -23 73 207 Leasing 17 Automotive 3,8% 3,508 -70 -34 231 386 324 -30 -509 18 Equipment 2,685 3,065 1,038 681 1,034 239 438 867 1,729 19 Loans on commercial accounts receivable and factored commercial accounts receivable 2,161 194 -477 894 -88 -105 500 37 255 20 All other business credit 536 2,587 792 305 -14 -318 476 -127 110 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

Real Estate A37 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1988 IItteemm 11998855 11998866 11998877 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms 1 Purchase price (thousands of dollars) 104.1 118.1 137.0 151.4 145.3 152.0 152.9 154.2 148.3 153.8 2 Amount of loan (thousands of dollars) 77.4 86.2 100.5 112.1 108.0 110.2 111.9 114.9 109.8 114.0 3 Loan/price ratio (percent) 77.1 75.2 75.2 76.2 76.4 73.8 15.2 76.7 75.4 75.8 4 Maturity (years) 26.9 26.6 27.8 27.7 28.1 27.5 28.4 28.5 27.6 28.4 5 Fees and charges (percent of loan amount) , 2.53 2.48 2.26 2.20 2.15 2.16 2.24 2.35 2.14 1.98 6 Contract rate (percent per year) 11.12 9.82 8.94 8.76 8.59 8.90 8.80 8.68 8.90 8.77 Yield (percent per year) 7 FHLBB series5 11.58 10.25 9.31 9.13 8.95 9.26 9.17 9.06 9.26 9.10 8 HUD series4 12.28 10.07 10.17' 10.19 10.48 10.35 10.47 10.55 n.a. n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 12.24 9.91 10.16r 10.46 10.84 10.65 10.66 10.74 n.a. n.a. 10 GNMA securities6 11.61 9.30 9.42 9.67 9.93 9.88 9.91 10.09 9.93 9.77 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 94,574 98,048 95,030 100,796 101,747 102,368 102,540 102,540 102,453 102,493 12 FHA/VA-insured 34,244 29,683 21,660 19,932 19,805 19,765 19,677 19,586 19,526 19,464 13 Conventional 60,331 68,365 73,370 80,864 81,941 82,603 82,864 82,954 82,927 83,030 Mortgage transactions (during period) 14 Purchases 21,510 30,826 20,531 2,409 2,138 2,372 1,960 1,638 1,111 1,488 Mortgage commitments1 15 Contracted (during period) 20,155 32,987 25,415 2,555 2,142 2,179 1,108 1,041 1,439 1,740 16 Outstanding (end of period) 3,402 3,386 4,886 6,033 5,777 5,365 4,277 3,135 3,257 3,165 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 12,399 13,517 12,802 14,822 15,228 15,576 15,133 15,142 n.a. n.a. 18 FHA/VA 841 746 686 635 633 627 619 611 n.a. n.a. 19 Conventional 11,559 12,771 12,116 14,187 14,595 14,949 14,514 14,531 n.a. n.a. Mortgage transactions (during period) 20 Purchases 44,012 103,474 76,845 2,772 2,877 4,117 3,879 3,858 n.a. n.a. 21 Sales 38,905 100,236 75,082 2,271 2,325 3,649 4,115 3,719 n.a. n.a. Mortgage commitments9 22 Contracted (during period) 48,989 110,855 71,467 6,437 5,159 6,447 5,328 3,480 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

A38 Domestic Financial Statistics • January 1989 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1987 1988 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998855 11998866 11998877 Q3 Q4 Q1 Q2' Q3 1 All holders 2,289,843 2,597,175 2,943,144' 2,864,736 2,943,144' 2,988, IOC 3,067,691 3,154,128 2 1- to 4-family 1,488,009 1,698,524 1,925,197' 1,870,635 1,925,197' 1,955,770' 2,015,759 2,079,732 3 Multifamily 214,470 247,831 273,83(K 268,911 273,830' 277,622' 282,756 286,510 4 Commercial 481,514 555,039 665555,,224499'' 635,230 655,249' 666,521' 681,246 698,721 Farm 105,850 95,781 8888,,886688 89,960 88,868 88,187' 87,930 89,165 6 Selected financial institutions 1,390,394 1,507,289 1,700,820 1,648,328 1,700,820 1,723,737' 1,773,569 1,828,599 '/ Commercial banks 429,1% 502,534 591,151 567,000 591,151 604,403' 628,132 653,388 8 1- to 4-family 213,434 235,814 275,761 263,762 275,761 280,439' 291,767 303,629 9 Multifamily 23,373 31,173 33,296 32,114 33,296 33,640r 34,672 35,936 10 Commercial 181,032 222,799 267,663 256,981 267,663 275,535' 286,366 297,880 11 Farm 11,357 12,748 14,431 14,143 14,431 14,789' 15,327 15,943 12 Savings institutions3 760,499 777,312 856,945 838,737 856,945 863,110 882,049 904,613 13 1- to 4-family 554,301 558,412 598,886 583,432 598,886 603,532 622,976 645,406 14 Multifamily 89,739 97,059 106,359 104,609 106,359 107,687 109,353 108,659 15 Commercial 115,771 121,236 150,943 149,938 150,943 151,136 148,969 149,798 16 Farm 688 605 n.a. n.a. n.a. n.a. n.a. n.a. 17 Life insurance companies 171,797 193,842 212,375 204,263 212,375 214,815 220,870 227,120 18 1- to 4-family 12,381 12,827 13,226 12,742 13,226 13,653 14,172 14,573 19 Multifamily 19,894 20,952 22,524 21,968 22,524 22,723 23,021 23,667 20 Commercial 127,670 149,111 166,722 159,464 166,722 168,774 174,086 179,012 21 Farm 11,852 10,952 9,903 10,089 9,903 9,665 9,591 9,868 22 Finance companies4 28,902 33,601 40,349 38,328 40,349 41,409 42,518 43,478 23 Federal and related agencies 166,928 203,800 192,721 191,520 192,721 1%,909 199,474 198,527 24 Government National Mortgage Association 1,473 889 444 458 444 434 42 43 25 1- to 4-family 539 47 25 25 25 25 24 24 26 Multifamily 934 842 419 433 419 409 18 19 27 Farmers Home Administration5 733 48,421 43,051 42,978 43,051 43,076 42,767 41,836 28 1- to 4-family 183 21,625 18,169 18,111 18,169 18,185 18,248 18,268 29 Multifamily 113 7,608 8,044 7,903 8,044 8,115 8,213 8,349 30 Commercial 159 8,446 6,603 6,592 6,603 6,640 6,288 5,300 31 Farm 278 10,742 10,235 10,372 10,235 10,136 10,018 9,919 32 Federal Housing and Veterans Administration 4,920 5,047 5,574 5,330 5,574 5,660 5,673 5,545 33 1- to 4-family 2,254 2,386 2,557 2,452 2,557 2,608 2,564 2,445 34 Multifamily 2,666 2,661 3,017 2,878 3,017 3,052 3,109 3,100 35 Federal National Mortgage Association 98,282 97,895 %,649 94,884 %,649 99,787 102,368 102,453 36 1- to 4-family 91,966 90,718 89,666 87,901 89,666 92,828 95,404 95,417 37 Multifamily 6,316 7,177 6,983 6,983 6,983 6,959 6,964 7,036 38 Federal Land Banks 47,498 39,984 34,131 34,930 34,131 33,566 33,048 33,208 39 1- to 4-family 2,798 2,353 2,008 2,055 2,008 1,975 1,945 1,954 40 Farm 44,700 37,631 32,123 32,875 32,123 31,591 31,103 31,254 41 Federal Home Loan Mortgage Corporation 14,022 11,564 12,872 12,940 12,872 14,386 15,576 15,442 42 1- to 4-family 11,881 10,010 11,430 11,570 11,430 12,749 13,631 13,589 43 Multifamily 2,141 1,554 1,442 1,370 1,442 1,637 1,945 1,853 44 Mortgage pools or trusts6 439,058 565,428 718,297 692,944 718,297 736,344 754,045 782,093 45 Government National Mortgage Association 212,145 262,697 317,555 308,339 317,555 322,976 322,616 332,926 46 1- to 4-family 207,198 256,920 309,806 300,815 309,806 315,095 314,728 324,469 47 Multifamily 4,947 5,777 7,749 7,524 7,749 7,881 7,888 8,457 48 Federal Home Loan Mortgage Corporation 100,387 171,372 212,634 208,872 212,634 214,724 216,155 220,683 49 1- to 4-family 99,515 166,667 205,977 202,308 205,977 208,138 209,702 214,063 50 Multifamily 872 4,705 6,657 6,564 6,657 6,586 6,453 6,620 51 Federal National Mortgage Association 54,987 97,174 139,960 130,540 139,960 145,242 157,438 167,170 52 1- to 4-family 54,036 95,791 137,988 128,770 137,988 142,330 153,253 162,228 53 Multifamily 951 1,383 1,972 1,770 1,972 2,912 4,185 4,942 54 Farmers Home Administration5 47,523 348 245 333 245 172 106 106 55 1- to 4-family 22,186 142 121 144 121 65 23 27 56 6,675 57 Commercial 8,190 132 63 124 63 58 41 38 58 Farm 10,472 74 61 65 61 49 42 41 59 Individuals and others7 293,463 320,658 331,306 331,944 331,306 331,110 340,603 344,909 60 1- to 4-family 162,419 177,374 171,325 173,360 171,325 169,509 177,074 178,954 61 Multifamily 55,849 66,940 75,368 74,795 75,368 76,021 76,935 77,872 62 Commercial 48,692 53,315 63,255 62,131 63,255 64,378 65,4% 66,693 63 Farm 26,503 23,029 21,358 21,658 21,358 21,202 21,098 21,390 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

Consumer Installment Credit A39 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted Millions of dollars 1988 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998866 Jan. Feb. Mar. Apr. May June July Aug. Sept. Amounts outstanding (end of period) 1 Total 571,833 613,022 619,258 624,294 629,485 633,336 636,318 644,372 647,993 653,317r 655,197 By major holder 2 Commercial banks 262,139 281,564 284,753 287,344 290,831 293,166 295,546 300,275 303,189 307,119^ 308,836 3 Finance companies 133,698 140,072 141,695 142,946 144,053 144,516 144,454 144,748 143,812 143,%2 142,723 4 Credit unions 76,191 81,065 81,662 81,897 82,595 83,204 83,881 84,912 85,468 85,881 86,707 5 Retailers3 39,660 42,782 42,926 43,080 43,271 43,295 43,162 43,450 43,634 43,712 43,956 6 Savings institutions 56,881 63,949 64,633 65,396 65,078 65,387 65,509 67,274 68,182 68,909 69,310 7 Gasoline companies 3,264 3,590 3,590 3,631 3,657 3,769 3,765 3,713 3,707 3,735 3,665 By major type of credit 8 Automobile 246,109 267,180 269,883 273,133 276,762 278,567 279,418 282,254 283,359 228855,,556600'' 285,610 9 Commercial banks 100,907 108,438 109,298 111,021 113,593 114,868 115,951 117,322 118,650 120,38c 121,403 10 Credit unions 38,413 43,474 43,959 44,251 44,795 45,293 45,831 46,565 47,043 47,444 48,075 11 Finance companies 92,350 98,026 99,147 100,123 100,669 100,564 99,708 99,900 98,8% 98,711 %,939 12 Savings institutions 14,439 17,242 17,479 17,738 17,705 17,841 17,928 18,465 18,770 19,026 19,193 13 Revolving 136,381 159,307 162,065 163,462 165,643 167,356 169,154 172,809 174,927 177,568' 179,086 14 Commercial banks 86,757 98,808 100,879 101,537 103,152 104,250 105,742 108,309 109,645 111,623' 112,435 15 Retailers 34,320 36,959 37,087 37,231 37,408 37,414 37,259 37,526 37,671 37,708 37,914 16 Gasoline companies 3,264 3,590 3,590 3,631 3,657 3,769 3,765 3,713 3,707 3,735 3,665 17 Savings institutions 8,366 13,279 13,601 13,945 14,059 14,309 14,518 15,098 15,492 15,850 16,135 18 Credit unions 3,674 6,671 6,908 7,117 7,368 7,614 7,870 8,162 8,413 8,652 8,935 19 Mobile home 26,883 25,957 25,926 25,857 25,732 25,764 25,703 25,852 25,882 25,915' 25,885 20 Commercial banks 8,926 9,101 9,064 9,035 8,993 9,047 8,966 8,933 8,913 8,893' 8,854 21 Finance companies 8,822 7,771 7,753 7,679 7,640 7,575 7,578 7,513 7,436 7,387 7,341 22 Savings institutions 9,135 9,085 9,109 9,143 9,099 9,142 9,159 9,406 9,533 9,634 9,690 23 Other 162,460 160,578 161,384 161,842 161,348 161,649 162,043 163,456 163,825 164,274' 164,616 24 Commercial banks 65,549 65,217 65,512 65,750 65,094 65,001 64,887 65,710 65,981 66,222' 66,143 25 Finance companies 32,526 34,275 34,795 35,144 35,744 36,376 37,168 37,335 37,480 37,863 38,443 26 Credit unions 34,104 30,920 30,795 30,529 30,432 30,297 30,180 30,184 30,012 29,785 29,697 27 Retailers 5,340 5,823 5,839 5,849 5,863 5,880 5,903 5,923 5,964 6,004 6,041 28 Savings institutions 24,941 24,343 24,444 24,570 24,216 24,095 23,904 24,305 24,388 24,399 24,292 Net change (during period) 29 Total 54,078 41,189 6,236 5,036 5,191 3,851 2,982 8,054 3,621 5,324r 1,880 By major holder 30 Commercial banks 20,495 19,425 3,189 2,591 3,487 2,335 2,380 4,729 2,914 3,930' 1,717 31 Finance companies 22,670 6,374 1,623 1,251 1,107 463 -62 294 -936 150 -1,239 32 Credit unions 4,268 4,874 597 235 698 609 677 1,031 556 413 826 33 Retailers 466 3,122 144 154 191 24 -133 288 184 78 244 34 Savings institutions 7,223 7,068 684 763 -318 309 122 1,765 908 111 401 35 Gasoline companies -1,044 326 0 41 26 112 -4 -52 -6 28 -70 By major type of credit 36 Automobile 36,473 2211,,007711 22,,770033 3,250 3,629 1,805 851 2,836 1,105 2,201' 50 37 Commercial banks 8,178 7,531 860 1,723 2,572 1,275 1,083 1,371 1,328 1,730' 1,023 38 Credit unions 2,388 5,061 485 292 544 498 538 734 478 401 631 39 Finance companies 22,823 5,676 1,121 976 546 -105 -856 192 -1,004 -185 -1,772 40 Savings institutions 3,084 2,803 237 259 -33 136 87 537 305 256 167 41 Revolving 14,368 22,926 2,758 1,397 2,181 1,713 1,798 3,655 2,118 2,641' 1,518 42 Commercial banks 11,150 12,051 2,071 658 1,615 1,098 1,492 2,567 1,336 1,978' 812 43 Retailers 47 2,639 128 144 177 6 -155 267 145 37 206 44 Gasoline companies -1,044 326 0 41 26 112 -4 -52 -6 28 -70 45 Savings institutions 2,078 4,913 322 344 114 250 209 580 394 358 285 46 Credit unions 2,137 2,997 237 209 251 246 256 292 251 239 283 47 Mobile home 49 -926 -31 -69 -125 32 -61 149 30 33' -30 48 Commercial banks -627 175 -37 -29 -42 54 -81 -33 -20 -20' -39 49 Finance companies -472 -1,051 -18 -74 -39 -65 3 -65 -77 -49 -46 50 Savings institutions 1,148 -50 24 34 -44 43 17 247 127 101 56 51 Other 3,188 -1,882 806 458 -494 301 394 1,413 369 449' 342 52 Commercial banks 1,794 -332 295 238 -656 -93 -114 823 271 241' -79 53 Finance companies 319 1,749 520 349 600 632 792 167 145 383 580 54 Credit unions -257 -3,184 -125 -266 -97 -135 -117 4 -172 -227 -88 55 Retailers 419 483 16 10 14 17 23 20 41 40 37 56 Savings institutions 913 -598 101 126 -354 -121 -191 401 83 11 -107 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

A40 Domestic Nonfinancial Statistics • January 1989 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1988 IItteemm 11998855 11998866 11998877 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks2 1 48-month new car3 12.91 11.33 10.45 n.a. n.a. 10.55 n.a. 10.93 2 24-month personal 15.94 14.82 14.22 n.a. n.a. 14.40 n.a. n.a. 14.81 3 120-month mobile home 14.% 13.99 13.38 n.a. n.a. 13.49 n.a. 13.62 4 Credit card 18.69 18.26 17.92 n.a. n.a. 17.78 n.a. 1177..7799 nn..aa.. Auto finance companies 55 New car 11.98 9.44 10.73 12.24 12.29 12.29 12.32 12.44 12.64 12.93 6 Used car 17.59 15.95 14.60 14.77 14.82 14.81 14.83 14.99 15.16 15.46 OTHER TERMS4 Maturity (months) 7 New car 51.5 50.0 53.5 56.0 56.2 56.2 56.3 56.4 56.5 56.3 8 Used car 41.4 42.6 45.2 46.9 46.9 46.9 46.9 46.8 46.8 4466..55 Loan-to-value ratio 9 New car 91 91 93 94 94 94 94 94 94 9944 10 Used car 94 97 98 98 98 99 9999 9999 98 9988 Amount financed (dollars) 11 New car 9,915 10,665 11,203 11,493 11,553 11,624 11,626 11,663 11,593 11,530 12 Used car 6,089 6,555 7,420 7,587 7,662 7,778 7,899 7,947 7,918 7,903 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

Flow of Funds A41 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998833 11998844 11998855 11998866 11998877 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 546.8 750.8 846.3 830.6 680.6 552.0 751.7 652.1 766.8 731.8 704.0 760.4 By sector and instrument 2 U.S. government 186.6 198.8 223.6 215.0 143.8 161.6 145.2 101.8 166.7 226.3 87.6 195.5 3 Treasury securities 186.7 199.0 223.7 214.7 142.3 157.7 147.1 102.7 161.8 226.8 79.8 174.6 4 Agency issues and mortgages -.1 -.2 -.1 .4 1.5 3.9 -1.9 -.9 5.0 -.5 7.7 20.9 5 Private domestic nonfinancial sectors 360.2 552.0 622.7 615.6 536.8 390.3 606.4 550.3 600.1 505.6 616.5 564.9 6 Debt capital instruments 257.6 319.3 452.3 460.7 446.1 473.3 466.7 428.1 416.1 363.3 452.2 457.1 7 Tax-exempt obligations 53.7 50.4 136.4 30.8 34.5 38.7 33.1 32.7 33.5 24.8 32.6 44.4 8 Corporate bonds 16.0 46.1 73.8 121.3 99.9 128.9 88.5 100.7 81.6 101.3 118.4 90.8 9 Mortgages 187.9 222.8 242.2 308.6 311.6 305.7 345.1 294.7 301.1 237.1 301.2 322.0 10 Home mortgages 120.4 136.7 156.8 210.9 221.7 224.2 243.5 212.1 206.9 177.9 228.0 210.1 11 Multifamily residential 14.1 25.2 29.8 33.5 24.3 27.4 30.9 23.1 15.9 21.4 14.0 33.5 1? Commercial 51.0 62.2 62.2 73.6 72.0 66.5 77.2 64.1 80.2 43.2 60.8 72.7 13 Farm 2.4 -1.2 -6.6 -9.5 -6.4 -12.4 -6.6 -4.7 -1.9 -5.4 -1.6 5.7 14 Other debt instruments 102.6 232.7 170.3 154.9 90.7 -83.0 139.7 122.2 184.0 142.3 164.2 107.8 15 Consumer credit 49.0 81.6 82.5 54.4 40.7 -.3 52.4 61.4 49.4 34.8 59.5 43.3 16 Bank loans n.e.c 23.2 67.1 38.6 69.3 8.8 -107.8 36.6 21.0 85.3 40.4 74.2 2.6 17 Open market paper -.8 21.7 14.6 -9.3 2.3 -.5 4.7 1.0 3.9 -3.8 4.0 11.1 18 Other 31.3 62.2 34.6 40.5 38.9 25.5 46.1 38.7 45.5 70.9 26.6 50.7 19 By borrowing sector 360.2 552.0 622.7 615.6 536.8 390.3 606.4 550.3 600.1 505.6 616.5 564.9 20 State and local governments 34.0 27.4 91.8 44.3 34.4 37.0 31.4 34.8 34.6 22.3 31.1 41.3 21 Households 186.1 231.5 283.6 286.1 261.5 197.3 302.7 281.2 264.9 220.0 288.0 250.9 22 Nonfinancial business 140.1 293.1 247.3 285.1 240.8 156.0 272.4 234.2 300.7 263.3 297.3 272.7 23 Farm 3.9 -.4 -14.5 -16.3 -11.2 -23.5 -12.7 -9.4 .8 -12.5 -3.6 1.3 24 Nonfarm noncorporate 81.9 123.2 129.3 127.6 115.8 108.4 125.7 105.4 123.8 91.0 87.1 120.3 25 Corporate 54.4 170.3 132.4 173.8 136.3 71.2 159.4 138.3 176.1 184.9 213.9 151.1 26 Foreign net borrowing in United States 17.3 8.4 1.2 9.6 4.3 -8.7 -.1 12.3 13.9 -1.0 4.9 9.7 77 Bonds 3.1 3.8 3.8 3.0 6.8 3.0 -4.1 6.7 21.6 16.8 -2.9 7.4 28 Bank loans n.e.c 3.6 -6.6 -2.8 -1.0 -3.6 -1.2 -3.5 -3.7 -6.1 .7 -3.5 .3 29 Open market paper 6.5 6.2 6.2 11.5 2.1 -4.2 -6.4 21.6 -2.5 1.5 6.4 10.7 30 U.S. government loans 4.1 5.0 -5.9 -3.9 -1.0 -6.4 13.9 -12.3 .8 -19.9 4.9 -8.8 31 Total domestic plus foreign 564.1 759.2 847.5 840.2 685.0 543.3 751.6 664.3 780.7 730.9 709.0 770.1 Financial sectors 32 Total net borrowing by financial sectors 99.2 148.7 198.3 297.2 303.1 340.0 316.7 306.4 249.2 218.9 250.1 249.1 By instrument 33 U.S. government related 67.8 74.9 101.5 178.1 185.8 193.5 196.8 185.5 167.5 137.4 84.7 140.2 34 Sponsored credit agency securities 1.4 30.4 20.6 15.2 30.2 -4.4 21.5 32.0 71.6 56.8 9.4 42.8 35 Mortgage pool securities 66.4 44.4 79.9 163.3 156.4 200.7 175.4 153.5 95.9 80.5 75.3 97.4 36 1.1 -.4 -.7 -2.9 -.1 37 Private financial sectors 31.4 73.8 96.7 119.1 117.2 146.5 119.9 120.8 81.7 81.6 165.4 108.9 38 Corporate bonds 17.3 33.0 47.9 70.9 67.1 103.2 45.6 77.7 41.8 74.7 67.9 65.9 39 Mortgages * .4 .1 .1 .3 .4 .1 .2 .4 .2 * 40 Bank loans n.e.c -.1 .7 2.6 4.0 -3.3 -9.5 .6 6.3 -10.7 -26.8 8.7 -4.9 41 Open market paper 21.3 24.1 32.0 24.2 28.8 41.5 54.0 14.3 5.4 28.0 78.7 21.3 42 Loans from Federal Home Loan Banks -7.0 15.7 14.2 19.8 24.4 11.0 19.6 22.2 44.9 5.4 10.1 26.6 By sector 43 99.2 148.7 198.3 297.2 303.1 340.0 316.7 306.4 249.2 218.9 250.1 249.1 44 Sponsored credit agencies 1.4 30.4 21.7 14.9 29.5 -7.2 21.4 32.0 71.6 56.8 9.4 42.8 45 Mortgage pools 66.4 44.4 79.9 163.3 156.4 200.7 175.4 153.5 95.9 80.5 75.3 97.4 46 Private financial sectors 31.4 73.8 96.7 119.1 117.2 146.5 119.9 120.8 81.7 81.6 165.4 108.9 47 Commercial banks 5.0 7.3 -4.9 -3.6 7.1 6.4 20.0 -13.1 15.0 -22.4 6.2 -12.9 48 Bank affiliates 12.1 15.6 14.5 4.6 2.9 25.6 -2.7 11.3 -22.6 -5.0 7.6 5.2 49 Savings and loan associations -2.1 22.7 22.3 29.8 36.0 28.0 22.2 41.9 51.9 9.1 18.2 52.9 50 Finance companies 13.0 18.2 52.7 48.4 30.6 18.1 39.9 36.3 28.2 54.5 100.4 40.6 51 REITs -.2 .8 .5 1.0 1.5 1.7 -.5 1.7 3.2 2.4 1.8 1.9 52 CMO Issuers 3.6 9.3 11.5 39.0 39.1 66.8 41.0 42.7 6.0 43.1 31.2 21.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • January 1989 1.57—Continued 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998833 11998844 11998855 11998866 11998877 Q1 Q2 Q3 Q4 Q1 Q2 Q3 All sectors 53 Total net borrowing 663.4 907.9 1,045.7 1,137.4 988.0 883.3 1,068.3 970.7 1,029.9 949.8 959.1 1,019.2 54 U.S. government securities 254.4 273.8 324.2 393.5 330.4 358.0 342.2 287.3 334.2 363.6 172.3 335.7 55 State and local obligations 53.7 50.4 136.4 30.8 34.5 38.7 33.1 32.7 33.5 24.8 32.6 44.4 56 Corporate and foreign bonds 36.4 83.0 125.4 195.2 173.8 235.2 130.0 185.1 145.0 192.8 183.5 164.1 57 Mortgages 187.8 223.1 242.2 308.6 311.9 306.0 345.2 294.9 301.4 237.4 301.2 322.0 58 Consumer credit 49.0 81.6 82.5 54.4 40.7 -.3 52.4 61.4 49.4 34.8 59.5 43.3 59 Bank loans n.e.c 26.7 61.1 38.3 72.3 1.9 -118.5 33.8 23.6 68.5 14.2 79.4 -2.0 60 Open market paper 26.9 52.0 52.8 26.4 33.2 36.8 52.3 36.9 6.7 25.7 89.1 43.1 61 Other loans 28.4 82.9 44.0 56.1 61.6 27.3 79.4 48.7 91.2 56.4 41.7 68.6 62 MEMO: U.S. government, cash balance -7.1 6.3 14.4 * -7.9 -34.9 77.7 -19.6 -54.7 60.9 3.3 6.4 Totals net of changes in U.S. government cash balances 63 Net borrowing by domestic nonfinancial 553.9 744.5 831.9 830.6 688.5 586.9 674.0 671.7 821.5 670.9 700.8 754.0 64 Net borrowing by U.S. government 193.7 192.5 209.3 215.0 151.7 196.6 67.6 121.4 221.4 165.4 84.3 189.1 External corporate equity funds raised in United States 65 Total net share issues 58.1 -36.0 20.1 93.9 13.3 170.1 13.9 -47.1 -83.6 -73.7 -141.0 -70.3 66 Mutual funds 27.2 29.3 84.4 161.8 72.3 205.4 79.1 13.8 -9.1 5.0 -8.1 6.0 67 All other 30.8 -65.3 -64.3 -68.0 -59.0 -35.3 -65.2 -60.9 -74.6 -78.7 -132.9 -76.3 68 Nonfinancial corporations 23.5 -74.5 -81.5 -80.7 -76.5 -57.0 -83.0 -78.0 -88.0 -95.0 -140.0 -92.0 69 Financial corporations 3.6 8.2 13.5 11.5 19.9 19.1 16.5 18.4 25.5 17.0 13.8 13.6 70 Foreign shares purchased in United States 3.7 .9 3.7 1.3 -2.4 2.7 1.2 -1.3 -12.0 -.7 -6.7 2.1 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; quarterly data are at seasonally adjusted annual rates. 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998833 11998844 11998855 11998866 11998877 Q1 Q2 Q3 Q4 Ql Q2 Q3 1 Total funds advanced in credit markets to domestic nonfinancial sectors 546.8 750.8 846.3 830.6 680.6 552.0 751.7 652.1 766.8 731.8 704.0 760.4 By public agencies and foreign 2 Total net advances 117.8 157.6 193.1 304.2 256.3 270.9 279.3 211.1 264.0 281.7 162.5 119966..66 3 U.S. government securities 29.0 38.9 37.9 69.4 68.2 59.0 55.3 35.1 123.3 148.6 38.2 17.3 4 Residential mortgages 76.1 56.5 94.6 160.3 153.2 194.8 169.4 146.0 102.7 100.7 89.7 97.5 5 FHLB advances to savings and loans -7.0 15.7 14.2 19.8 24.4 11.0 19.6 22.2 44.9 5.4 10.1 26.6 6 Other loans and securities 19.7 46.6 46.3 54.6 10.5 6.1 35.1 7.8 -6.8 27.0 24.5 55.3 Total advanced, by sector 7 U.S. government 9.7 17.1 16.8 9.7 -11.5 -8.5 -12.3 -24.1 -.9 -8.9 -10.1 1.5 8 Sponsored credit agencies 69.8 74.3 95.5 177.3 180.6 204.9 177.0 187.0 153.6 123.3 86.3 119.9 9 Monetary authorities 14.7 8.4 18.4 19.4 24.7 9.4 29.8 29.0 30.4 -5.5 4.1 17.1 10 Foreign 23.7 57.9 62.3 97.8 62.5 65.1 84.8 19.1 81.0 172.9 82.2 58.2 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 67.8 74.9 101.5 178.1 185.8 193.5 196.8 185.5 167.5 137.4 84.7 114400..22 12 Foreign 17.3 8.4 1.2 9.6 4.3 -8.7 -.1 12.3 13.9 -1.0 4.9 9.7 Private domestic funds advanced n Total net advances 514.2 676.4 756.0 714.1 614.5 465.9 669.1 638.7 684.2 586.5 631.2 713.7 14 U.S. government securities 225.4 234.9 286.2 324.1 262.2 299.0 286.9 252.2 210.9 215.0 134.1 318.4 15 State and local obligations 53.7 50.4 136.4 30.8 34.5 38.7 33.1 32.7 33.5 24.8 32.6 44.4 16 Corporate and foreign bonds 14.5 35.1 40.8 84.1 86.5 100.4 58.8 83.7 102.9 115.7 88.1 68.6 17 Residential mortgages 58.3 105.3 91.8 84.1 92.8 56.7 105.0 89.3 120.0 98.7 152.4 146.1 18 Other mortgages and loans 155.1 266.3 214.9 210.8 162.9 -18.0 204.8 203.0 261.7 137.7 234.1 162.8 19 LESS: Federal Home Loan Bank advances -7.0 15.7 14.2 19.8 24.4 11.0 19.6 22.2 44.9 5.4 10.1 26.6 Private financial intermediation 20 Credit market funds advanced by private financial institutions 394.7 581.0 569.8 746.3 564.9 521.5 549.7 639.7 548.5 674.9 615.7 606.4 71 Commercial banking 144.3 168.9 186.3 194.8 136.3 -56.2 198.0 150.9 252.6 56.0 213.3 132.3 77 Savings institutions 135.6 150.2 83.0 105.5 140.4 89.9 132.0 188.7 151.0 87.9 120.7 166.4 23 Insurance and pension funds 100.1 121.8 148.9 181.9 210.8 266.3 178.0 246.2 152.8 282.4 235.3 217.6 24 Other finance 14.7 140.1 151.6 264.3 77.3 221.6 41.7 54.0 -7.9 248.6 46.5 90.1 75 Sources of funds 394.7 581.0 569.8 746.5 564.9 521.5 549.7 639.7 548.5 674.9 615.7 606.4 76 Private domestic deposits and RPs 210.4 321.9 210.6 264.7 146.2 -17.1 141.1 193.9 266.8 287.7 127.3 206.1 77 Credit market borrowing 31.4 73.8 96.7 119.1 117.2 146.5 119.9 120.8 81.7 81.6 165.4 108.9 78 Other sources 152.9 185.3 262.5 362.7 301.4 392.1 288.6 325.0 200.0 305.6 323.0 291.3 79 Foreign funds 14.6 8.8 19.7 12.9 43.7 14.9 35.1 99.5 25.2 -80.1 106.6 -39.2 30 Treasury balances -5.3 4.0 10.3 1.7 -5.8 -36.9 43.6 6.1 -36.1 53.3 -17.5 -1.9 31 Insurance and pension reserves 115.0 124.0 131.9 144.3 175.0 195.1 191.1 194.8 118.9 247.6 207.8 173.7 32 Other, net 28.7 48.5 100.7 203.8 88.6 219.0 18.9 24.6 91.9 84.8 26.1 158.6 Private domestic nonfinancial investors 33 Direct lending in credit markets 150.9 169.2 282.9 86.7 166.8 90.9 239.3 119.8 217.3 -6.9 180.9 216.2 34 U.S. government securities 91.0 115.4 175.7 50.1 103.2 52.1 170.1 70.9 119.6 117.6 23.8 160.0 35 State and local obligations 38.8 26.5 39.6 -13.6 46.1 27.8 58.1 42.4 56.0 1.5 29.7 39.1 36 Corporate and foreign bonds -8.3 -.8 2.4 32.6 5.1 9.3 -58.6 28.3 41.5 -40.6 52.7 -25.9 37 Open market paper 12.4 4.0 45.6 -3.0 7.9 -1.9 64.2 -23.3 -7.5 -65.6 77.7 40.5 38 Other 17.0 24.2 19.6 20.7 4.6 3.6 5.6 1.6 7.7 -19.7 -3.0 2.5 39 Deposits and currency 227.8 325.4 220.9 285.0 162.4 -46.6 149.2 229.3 317.6 282.7 134.9 256.7 40 Currency 14.3 8.6 12.4 14.4 19.0 9.4 12.5 17.3 36.8 8.2 11.9 17.5 41 Checkable deposits 28.8 28.0 40.9 93.2 -2.4 -98.7 40.3 34.5 14.4 4.2 21.5 -.6 42 Small time and savings accounts 215.4 150.7 138.4 120.6 75.9 31.3 69.3 79.9 123.1 195.1 125.5 102.1 43 Money market fund shares -39.0 49.0 8.9 41.5 28.2 14.4 2.4 32.7 63.3 59.1 -34.8 13.0 44 Large time deposits -8.3 84.3 7.7 -11.5 27.6 13.7 4.8 .2 91.6 12.0 -7.6 92.0 45 Security RPs 13.5 10.0 14.6 20.8 16.9 22.1 24.3 46.6 -25.6 17.3 22.7 -.4 46 Deposits in foreign countries 3.1 -5.1 -2.1 5.9 -2.8 -38.9 -4.4 18.1 13.9 -13.3 -4.3 33.1 47 Total of credit market instruments, deposits, and currency 378.7 494.6 503.7 371.8 329.2 44.3 388.5 349.1 534.9 275.8 315.8 472.9 48 Public holdings as percent of total 20.9 20.8 22.8 36.2 37.4 49.9 37.2 31.8 33.8 38.5 22.9 25.5 49 Private financial intermediation (in percent) 76.8 85.9 75.4 104.5 91.9 112.0 82.2 100.2 80.2 115.1 97.6 85.0 50 Total foreign funds 38.2 66.7 82.0 110.7 106.2 80.0 119.9 118.7 106.2 92.8 188.9 19.0 MEMO: Corporate equities not included above 51 Total net issues 58.1 -36.0 20.1 93.9 13.3 170.1 13.9 -47.1 -83.6 -73.7 -141.0 -70.3 57 Mutual fund shares 27.2 29.3 84.4 161.8 72.3 205.4 79.1 13.8 -9.1 5.0 -8.1 6.0 53 Other equities 30.8 -65.3 -64.3 -68.0 -59.0 -35.3 -65.2 -60.9 -74.6 -78.7 -132.9 -76.3 54 Acquisitions by financial institutions 50.4 15.8 45.6 48.5 22.6 29.2 72.6 5.2 -16.5 -33.0 -10.1 -9.4 55 Other net purchases 7.7 -51.8 -25.5 45.4 -9.3 140.9 -58.7 -52.4 -67.1 -40.7 -131.0 -61.0 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 Financial Statistics • January 1989 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998833 11998844 11998855 11998866 11998877 Q1 Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 5,204.3 5,953.7 6,797.0 7,618.1 8,301.3 7,725.8 7,917.4 8,074.1 8,301.3 8,444.3 8,629.8 8,817.3 By sector and instrument 2 U.S. government 1,177.9 1,376.8 1,600.4 1,815.4 1,959.2 1,843.9 1,875.3 1,897.0 1,959.2 2,001.8 2,020.4 2,063.8 3 Treasury securities 1,174.4 1,373.4 1,597.1 1,811.7 1,954.1 1,839.3 1,871.2 1,893.1 1,954.1 1,996.7 2,013.5 2,051.6 4 Agency issues and mortgages 3.6 3.4 3.3 3.6 5.2 4.6 4.2 3.9 5.2 5.0 7.0 12.2 5 Private domestic nonfinancial sectors 4,026.4 4,577.0 5,196.6 5,802.7 6,342.1 5,881.9 6,042.1 6,177.1 6,342.1 6,442.6 6,609.4 6,753.5 6 Debt capital instruments 2,717.8 3,040.0 3,488.4 3,946.4 4,404.5 4,065.6 4,189.4 4,296.9 4,404.5 4,479.3 4,596.7 4,715.0 7 Tax-exempt obligations 471.7 522.1 658.4 689.2 723.7 696.9 705.2 715.5 723.7 728.0 735.8 749.4 8 Corporate bonds 423.0 469.2 542.9 664.2 764.1 696.4 718.5 743.7 764.1 789.4 819.1 841.7 9 Mortgages 1,823.1 2,048.8 2,287.1 2,593.0 2,916.6 2,672.2 2,765.7 2,837.7 2,916.6 2,961.8 3,041.9 3,123.8 10 Home mortgages 1,200.2 1,336.2 1,490.2 1,699.6 1,908.7 1,730.4 1,800.7 1,853.8 1,908.7 1,939.7 2,000.4 2,056.6 11 Multifamily residential 158.8 183.6 213.0 246.3 269.9 254.2 259.9 264.9 269.9 273.8 278.1 285.6 12 Commercial 350.4 416.5 478.1 551.4 649.2 594.8 613.8 629.0 649.2 660.2 675.5 692.5 13 Farm 113.7 112.4 105.9 95.8 88.9 92.8 91.3 90.0 88.9 88.2 87.9 89.2 14 Other debt instruments 1,308.6 1,536.9 1,708.2 1,856.3 1,937.6 1,816.4 1,852.7 1,880.2 1,937.6 1,963.3 2,012.6 2,038.5 15 Consumer credit 437.7 519.3 601.8 656.2 696.9 643.3 658.7 680.9 696.9 692.2 709.6 727.8 16 Bank loans n.e.c 490.2 552.9 592.6 658.6 656.7 627.7 636.3 637.5 656.7 669.4 689.9 688.7 17 Open market paper 36.8 58.5 72.2 62.9 73.8 63.6 67.9 68.1 73.8 73.5 77.8 80.3 18 Other 344.0 406.2 441.6 478.6 510.1 481.7 489.9 493.7 510.1 528.1 535.3 541.6 19 By borrowing sector 4,026.4 4,577.0 5,196.6 5,802.7 6,342.1 5,881.9 6,042.1 6,177.1 6,342.1 6,442.6 6,609.4 6,753.5 20 State and local governments 357.7 385.1 476.9 520.2 554.7 527.5 535.3 546.2 554.7 558.3 565.7 578.5 21 Households 1,811.6 2,038.2 2,314.5 2,594.2 2,836.6 2,605.4 2,691.2 2,762.8 2,836.6 2,866.2 2,945.7 3,016.4 22 Nonfinancial business 1,857.1 2,153.7 2,405.2 2,688.3 2,950.9 2,749.0 2,815.7 2,868.1 2,950.9 3,018.1 3,097.9 3,158.5 23 Farm 188.4 187.9 173.4 156.6 144.9 149.9 150.2 148.5 144.9 141.5 144.0 145.0 24 Nonfarm noncorporate 645.8 769.0 898.3 1,025.9 1,141.7 1,053.8 1,084.3 1,106.7 1,141.7 1,165.2 1,186.0 1,211.9 25 Corporate 1,022.9 1,196.8 1,333.5 1,505.8 1,664.3 1,545.3 1,581.2 1,612.9 1,664.3 1,711.5 1,767.8 1,801.6 26 Foreign credit market debt held in United States 227.3 235.1 236.7 238.2 244.3 236.7 236.8 238.9 244.3 245.1 246.3 247.8 27 Bonds 64.2 68.0 71.8 74.8 81.6 75.1 74.6 75.9 81.6 85.4 85.2 86.7 28 Bank loans n.e.c 37.4 30.8 27.9 26.9 23.3 26.0 25.4 24.2 23.3 22.8 22.4 22.0 29 Open market paper 21.5 27.7 33.9 37.4 41.2 37.3 35.6 40.6 41.2 42.5 44.0 46.3 30 U.S. government loans 104.1 108.6 103.0 99.1 98.1 98.3 101.2 98.2 98.1 94.4 94.7 92.8 31 Total domestic plus foreign 5,431.6 6,188.8 7,033.7 7,856.3 8,545.6 7,962.5 8,154.2 8,313.1 8,545.6 8,689.4 8,876.1 9,065.1 Financial sectors 32 Total credit market debt owed by financial sectors 857.9 1,006.2 1,206.2 1,510.8 1,862.6 1,621.8 1,710.0 1,783.8 1,862.6 1,903.8 1,972.6 2,035.7 By instrument 33 U.S. government related 456.7 531.2 632.7 810.3 1,026.5 887.1 937.1 981.6 1,026.5 1,054.8 1,076.9 1,113.7 34 Sponsored credit agency securities 206.8 237.2 257.8 273.0 303.2 268.4 275.8 283.7 303.2 313.5 317.9 328.5 35 Mortgage pool securities 244.9 289.0 368.9 531.6 718.3 613.7 656.4 692.9 718.3 736.3 754.0 780.2 36 Loans from U.S. government 5.0 5.0 6.1 5.7 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 37 Private financial sectors 401.2 475.0 573.4 700.5 836.1 734.8 772.9 802.1 836.1 849.0 895.7 922.0 38 Corporate bonds 115.8 148.9 197.5 268.4 335.5 293.4 304.6 324.2 335.5 353.2 370.0 386.8 39 Mortgages 2.1 2.5 2.7 2.7 3.0 2.8 2.9 2.9 3.0 3.1 3.1 3.1 40 Bank loans n.e.c 28.9 29.5 32.1 36.1 40.8 36.5 40.1 42.2 40.8 31.7 34.3 33.9 41 Open market paper 195.5 219.5 252.4 284.6 323.8 295.2 311.1 312.7 323.8 331.5 353.4 356.8 42 Loans from Federal Home Loan Banks... 59.0 74.6 88.8 108.6 133.1 106.8 114.3 120.1 133.1 129.5 134.8 141.6 43 Total, by sector 857.9 1,006.2 1,206.2 1,510.8 1,862.6 1,621.8 1,710.0 1,783.8 1,862.6 1,903.8 1,972.6 2,035.7 44 Sponsored credit agencies 211.8 242.2 263.9 278.7 308.2 273.4 280.7 288.7 308.2 318.5 322.9 333.5 45 Mortgage pools 244.9 289.0 368.9 531.6 718.3 613.7 656.4 692.9 718.3 736.3 754.0 780.2 46 Private financial sectors 401.2 475.0 573.4 700.5 836.1 734.8 772.9 802.1 836.1 849.0 895.7 922.0 47 Commercial banks 76.8 84.1 79.2 75.6 82.7 76.1 80.7 78.6 82.7 76.4 77.2 75.4 48 Bank affiliates 71.0 86.6 101.2 101.3 104.2 109.0 108.7 109.5 104.2 104.4 106.5 105.8 49 Savings and loan associations 73.9 93.2 115.5 145.1 181.1 146.6 157.0 165.4 181.1 177.4 187.3 198.0 50 Finance companies 171.7 193.2 246.9 308.1 357.0 315.4 328.8 339.9 357.0 368.3 393.8 406.3 51 REITs 3.5 4.3 5.6 6.5 8.1 7.0 6.8 7.3 8.1 8.7 9.1 9.6 52 CMO Issuers 4.2 13.5 25.0 64.0 103.1 80.7 90.9 101.6 103.1 113.9 121.7 127.0 All sectors 53 Total credit market debt 6,289.5 7,195.0 8,239.8 9,367.2 10,408.1 9,584.3 9,864.2 10,096.9 10,408.1 10,593.3 10,848.6 11,100.8 54 U.S. government securities 1,629.4 1,902.8 2,227.0 2,620.0 2,980.7 2,726.0 2,807.4 2,873.7 2,980.7 3,051.6 3,092.3 3,172.5 55 State and local obligations 471.7 522.1 658.4 689.2 723.7 696.9 705.2 715.5 723.7 728.0 735.8 749.4 56 Corporate and foreign bonds 603.0 686.0 812.1 1,007.4 1,181.2 1,064.9 1,097.7 1,143.9 1,181.2 1,228.1 1,274.2 1,315.2 57 Mortgages 1,825.4 2,051.4 2,289.8 2,595.8 2,919.7 2,675.1 2,768.6 2,840.6 2,919.7 2,964.9 3,045.0 3,127.0 58 Consumer credit 437.7 519.3 601.8 656.2 696.9 643.3 658.7 680.9 696.9 692.2 709.6 727.8 59 Bank loans n.e.c 556.5 613.2 652.6 721.6 720.8 690.3 701.7 703.8 720.8 723.9 746.6 744.6 60 Open market paper 253.8 305.7 358.5 384.9 438.8 396.1 414.6 421.4 438.8 447.5 475.3 483.4 61 Other loans 512.1 594.4 639.5 692.0 746.3 691.8 710.4 717.0 746.3 757.0 769.8 780.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A45 1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER Billions of dollars, except as noted; period-end levels. 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998833 11998844 11998855 11998866 11998877 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Total funds advanced in credit markets to domestic nonfinancial sectors 5,204.3 5,953.7 6,797.0 7,618.1 8,301.3 7,725.8 7,917.4 8,074.1 8,301.3 8,444.3 8,629.8 8,817.3 By public agencies and foreign 2 Total held 1,101.7 1,259.2 1,459.4 1,759.3 2,037.8 1,847.6 1,918.0 1,967.0 2,037.8 2,098.6 2,144.4 22,,119922..88 3 U.S. government securities 339.0 377.9 421.8 491.2 559.4 502.3 519.5 525.6 559.4 592.7 606.1 607.1 4 Residential mortgages 367.0 423.5 518.2 678.5 862.0 758.9 800.0 834.6 862.0 884.8 906.1 932.2 5 FHLB advances to savings and loans 59.0 74.6 88.8 108.6 133.1 106.8 114.3 120.1 133.1 129.5 134.8 141.6 6 Other loans and securities 336.8 383.1 430.6 481.0 483.4 479.6 484.3 486.8 483.4 491.5 497.4 511.9 7 Total held, by type of lender 1,101.7 1,259.2 1,459.4 1,759.3 2,037.8 1,847.6 1,918.0 1,967.0 2,037.8 2,098.6 2,144.4 2,192.8 8 U.S. government 212.8 229.7 247.6 254.3 235.4 249.2 242.9 237.1 235.4 233.7 232.0 232.6 9 Sponsored credit agencies and mortgage pools ... 482.0 556.3 657.8 833.9 1,044.1 912.0 957.9 1,003.7 1,044.1 1,068.2 1,091.6 1,124.2 10 Monetary authority 159.2 167.6 186.0 205.5 230.1 204.1 214.9 219.6 230.1 224.9 229.7 230.8 11 Foreign 247.7 305.6 367.9 465.7 528.2 482.3 502.3 506.7 528.2 571.8 591.1 605.3 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools ... 456.7 531.2 632.7 810.3 1,026.5 887.1 937.1 981.6 1,026.5 1,054.8 1,076.9 1,113.7 13 Foreign 227.3 235.1 236.7 238.2 244.3 236.7 236.8 238.9 244.3 245.1 246.3 247.8 Private domestic holdings 14 Total private holdings 4,786.6 5,460.8 6,207.0 6,907.3 7,534.2 7,002.0 7,173.2 7,327.7 7,534.2 7,645.7 7,808.6 7,985.9 15 U.S. government securities 1,290.4 1,524.9 1,805.2 2,128.7 2,421.3 2,223.7 2,287.9 2,348.1 2,421.3 2,458.9 2,486.3 2,565.3 16 State and local obligations 471.7 522.1 658.4 689.2 723.7 696.9 705.2 715.5 723.7 728.0 735.8 749.4 17 Corporate and foreign bonds 441.7 476.8 517.6 601.7 688.1 626.0 642.4 663.4 688.1 716.3 740.1 757.3 18 Residential mortgages 992.2 1,096.5 1,185.1 1,267.4 1,316.7 1,225.8 1,260.6 1,284.2 1,316.7 1,328.7 1,372.4 1,410.0 19 Other mortgages and loans 1,649.6 1,915.2 2,129.5 2,328.9 2,517.4 2,336.4 2,391.5 2,436.6 2,517.4 2,543.3 2,608.9 2,645.5 20 LESS: Federal Home Loan Bank advances 59.0 74.6 88.8 108.6 133.1 106.8 114.3 120.1 133.1 129.5 134.8 141.6 Private financial intermediation 21 Credit market claims held by private financial institutions 4,111.2 4,691.0 5,264.4 6,009.5 6,585.2 6,126.1 6,277.5 6,433.5 6,585.2 6,723.0 6,892.6 7,042.6 22 Commercial banking 1,622.1 1,791.1 1,978.5 2,173.2 2,309.6 2,155.9 2,207.9 2,248.7 2,309.6 2,322.1 2,377.5 2,414.3 23 Savings institutions 944.0 1,092.8 1,178.4 1,283.0 1,434.2 1,308.4 1,355.4 1,396.5 1,434.2 1,440.3 1,486.8 1,523.4 24 Insurance and pension funds 1,093.5 1,215.3 1,364.2 1,546.0 1,756.9 1,608.7 1,652.6 1,715.3 1,756.9 1,823.0 1,880.9 1,937.2 25 Other finance 451.6 591.7 743.4 1,007.3 1,084.6 1,053.1 1,061.5 1,073.0 1,084.6 1,137.6 1,147.5 1,167.7 26 Sources of funds 4,111.2 4,691.0 5,264.4 6,009.5 6,585.2 6,126.1 6,277.5 6,433.5 6,585.2 6,723.0 6,892.6 7,042.6 27 Private domestic deposits and RPs 2,389.8 2,711.5 2,922.1 3,182.6 3,328.8 3,165.0 3,198.6 3,234.4 3,328.8 3,385.7 3,417.0 3,455.1 28 Credit market debt 401.2 475.0 573.4 700.5 836.1 734.8 772.9 802.1 836.1 849.0 895.7 922.0 29 Other sources 1,320.2 1,504.5 1,768.9 2,126.4 2,420.4 2,226.3 2,305.9 2,397.0 2,420.4 2,488.4 2,579.9 2,665.6 30 Foreign funds -23.0 -14.1 5.6 18.6 62.2 26.7 26.1 52.7 62.2 45.9 62.3 54.8 31 Treasury balances 11.5 15.5 25.8 27.5 21.6 8.6 30.9 33.0 21.6 23.5 32.6 31.5 32 Insurance and pension reserves 1,036.1 1,160.8 1,289.5 1,427.9 1,592.2 1,461.8 1,507.5 1,552.8 1,592.2 1,656.3 1,706.7 1,751.9 33 Other, net 295.6 342.2 448.0 652.5 744.3 729.2 741.4 758.5 744.3 762.8 778.3 827.4 Private domestic nonfinancial investors 34 Credit market claims 1,076.6 1,244.8 1,516.0 1,598.3 1,785.0 1,610.7 1,668.7 1,696.3 1,785.0 1,771.6 1,811.6 1,865.3 35 U.S. government securities 548.6 663.6 830.7 881.2 1,014.7 912.0 950.4 969.4 1,014.7 1,025.7 1,027.0 1,071.4 36 Tax-exempt obligations 170.0 196.3 235.9 222.3 268.4 226.2 243.1 255.9 268.4 265.6 275.3 287.3 37 Corporate and foreign bonds 45.4 44.5 47.6 80.1 85.3 88.8 71.4 80.6 85.3 82.7 93.0 88.4 38 Open market paper 68.4 72.4 118.0 115.0 143.5 115.5 132.6 118.7 143.5 127.8 148.5 149.6 39 Other 244.3 268.0 283.8 299.7 273.2 268.1 271.2 271.9 273.2 269.9 267.9 268.5 40 Deposits and currency 2,566.4 2,891.7 3,112.5 3,393.4 3,555.7 3,364.7 3,405.6 3,444.5 3,555.7 3,607.4 3,646.4 3,690.7 41 Currency 150.9 159.6 171.9 186.3 205.4 185.3 191.3 192.4 205.4 204.0 209.9 210.7 42 Checkable deposits 350.9 378.8 419.7 512.9 510.5 468.5 488.0 487.2 510.5 491.1 506.8 497.3 43 Small time and savings accounts 1,542.9 1,693.5 1,831.9 1,948.3 2,024.2 1,965.2 1,977.7 1,990.8 2,024.2 2,079.4 2,107.9 2,126.8 44 Money market fund shares 169.5 218.5 227.3 268.9 297.1 281.3 279.5 286.4 297.1 322.1 310.4 311.1 45 Large time deposits 247.7 332.1 339.8 328.4 356.0 323.4 322.5 326.3 356.0 351.0 346.1 372.4 46 Security RPs 78.8 88.7 103.3 124.1 141.0 126.6 130.9 143.6 141.0 142.1 145.9 147.4 47 Deposits in foreign countries 25.7 20.6 18.5 24.5 21.6 14.4 15.7 17.8 21.6 17.8 19.4 25.0 48 Total of credit market instruments, deposits, and currency 3,643.0 4,136.5 4,628.5 4,991.7 5,340.8 4,975.4 5,074.2 5,140.8 5,340.8 5,379.0 5,458.0 5,556.1 49 Public holdings as percent of total 20.3 20.3 20.7 22.4 23.8 23.2 23.5 23.7 23.8 24.2 24.2 24.2 50 Private financial intermediation (in percent) 85.9 85.9 84.8 87.0 87.4 87.5 87.5 87.8 87.4 87.9 88.3 88.2 51 Total foreign funds 224.7 291.5 373.5 484.2 590.5 509.0 528.4 559.4 590.5 617.6 653.4 660.0 MEMO: Corporate equities not included above 52 Total market value 2,134.0 2,158.2 2,824.5 3,362.0 3,313.4 3,990.2 4,110.0 4,300.8 3,313.4 3,494.8 3,612.6 3,577.5 53 Mutual fund shares 112.1 136.7 240.2 413.5 460.1 485.2 520.7 525.1 460.1 479.2 486.8 483.9 54 Other equities 2,021.9 2,021.5 2,584.3 2,948.5 2,853.2 3,505.0 3,589.3 3,775.7 2,853.2 3,015.7 3,125.9 3,093.6 55 Holdings by financial institutions 612.0 615.6 800.0 972.2 1,021.7 1,175.7 1,238.9 1,312.5 1,021.7 1,087.1 1,133.8 1,133.0 56 Other holdings 1,522.0 1,542.6 2,024.5 2,389.8 2,291.7 2,814.5 2,871.1 2,988.4 2,291.7 2,407.7 2,478.9 2,444.4 NOTES BY LINE NUMBER. 32. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.59. 33. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 34. Line 14 less line 21 plus line 28. 35-39. Lines 15-19 less amounts acquired by private finance plus amounts 6. Includes farm and commercial mortgages. borrowed by private finance. Line 39 includes mortgages. 12. Credit market debt of federally sponsored agencies, and net issues of 41. Mainly an offset to line 10. federally related mortgage pool securities. 48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47. 14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34. 49. Line 2/line 1 and 13. Also sum of lines 29 and 48 less lines 41 and 47. 50. Line 21Aine 14. 19. Includes farm and commercial mortgages. 51. Sum of lines 11 and 30. 27. Line 40 less lines 41 and 47. 52-54. Includes issues by financial institutions. 28. Excludes equity issues and investment company shares. Includes line 20. NOTE. Full statements for sectors and transaction types in flows and in amounts 30. Foreign deposits at commercial banks plus bank borrowings from foreign outstanding may be obtained from Flow of Funds Section, Stop 95, Division of affiliates, less claims on foreign affiliates and deposits by banking in foreign banks. Research and Statistics, Board of Governors of the Federal Reserve System, 31. Demand deposits and note balances at commercial banks. Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • January 1989 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1988 MMeeaassuurree 11998855 11998866 11998877 Feb. Mar. Apr. May June July Aug/ Sept/ Oct/ 1 Industrial production 123.7 125.1 129.8 134.4 134.7 135.4 136.1 136.5 138.0r 138.4 138.7 139.2 Market groupings 2 Products, total 130.6 133.3 138.3 143.4 143.6 144.1 145.0 145.3 146.5R 147.1 147.4 148.4 i Final, total 131.0 132.5 136.8 141.6 141.8 142.5 143.5 144.0 145.0R 145.7 146.0 146.8 4 Consumer goods 119.8 124.0 127.7 131.3 131.2 131.9 132.7 133.0 134.2'" 134.9 134.7 135.5 5 Equipment 145.8 143.6 148.8 155.3 155.9 156.5 157.7 158.5 159.4'" 159.9 160.9 161.7 6 Intermediate 129.3 136.2 143.5 149.4 149.9 149.6 150.4 150.0 151.6R 152.2 152.5 153.9 7 Materials 114.3 113.8 118.2 122.1 122.5 123.6 123.9 124.5 126.4' 126.6 126.8 126.8 Industry groupings 8 Manufacturing 126.4 129.1 134.6 139.5 140.0 140.8 141.8 142.1 143.6R 143.9 144.5 145.2 Capacity utilization (percent)2 9 Manufacturing 80.1 79.7 81.1 82.6 82.7 82.9 83.3 83.3 84.0R 83.9 84.1 84.3 10 Industrial materials industries 80.3 78.6 80.5 82.3 82.4 82.9 83.0 83.2 84.4 84.3 84.3 84.2 11 Construction contracts (1982 = 100)3 150.0 158.0 161.0 159.0 154.0 144.0 157.0 165.0 156.0 155.0 151.0 153.0 12 Nonagricultural employment, total4 118.3 120.7 124.1 127.0 127.3 127.7 127.9 128.6 128.9 129.1 129.4 129.8 13 Goods-producing, total 102.1 100.9 101.8 103.8 104.1 104.5 104.6 105.1 105.4 105.3 105.3 105.7 14 Manufacturing, total 97.8 96.3 96.8 98.5 98.6 98.8 99.0 99.3 99.5 99.4 99.3 99.8 15 Manufacturing, production-worker.... 92.6 91.2 92.1 93.7 93.7 93.9 94.1 94.4 94.6 94.4 94.3 94.9 lb Service-producing 125.0 129.0 133.4 136.7 137.1 137.4 137.7 138.4 138.7 139.0 139.5 139.9 17 Personal income, total 206.9 219.7 235.1 245.5 248.0 248.8 250.2 251.6 253.3 254.5 255.9 260.3 18 Wages and salary disbursements 198.8 210.7 226.2 237.3 238.9 240.9 242.3 244.2 246.7 247.4 248.8 252.7 19 Manufacturing < 172.8 177.4 183.8 190.2 193.6 192.8 193.8 195.4 196.6 196.8 198.1 202.3 20 Disposable personal income 205.8 218.9 232.7 244.8 247.0 243.3 249.5 251.2 253.0 254.1 255.5 260.3 21 Retail sales 189.6 199.5 209.3 216.7 220.3 219.4 221.2 222.5 223.7 222.4 223.8 225.9 Prices7 22 Consumer (1982-84 = 100) 107.6 109.6 113.6 116.0 116.5 117.1 117.5 118.0 118.5 119.0 119.8 120.2 23 Producer finished goods (1982 = 100) ... 104.7 103.2 105.4 106.1 106.3 107.0 107.5 107.9 108.5 108.8 108.6 109.3 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 A47 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1988 CCaatteeggoorryy 11998855 11998866 11998877 Mar. Apr. May June July Aug/ Sept/ Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population' 180,440 182,822 185,010 186,361 186,478 186,600 186,755 186,911 187,033 187,178 187,333 2 Labor force (including Armed Forces)1 117,695 120,078 122,122 123,153 123,569 123,204 123,665 123,866 124,234 124,140 124,231 3 Civilian labor force 115,461 117,834 119,865 120,903 121,323 120,978 121,472 121,684 122,031 121,924 122,012 4 Nonagricultural industries 103,971 106,434 109,232 110,899 111,485 111,160 111,933 112,014 112,029 112,158 112,255 5 Agriculture 3,179 3,163 3,208 3,204 3,228 3,035 3,085 3,046 3,151 3,169 3,266 6 Number 8,312 8,237 7,425 6,801 6,610 6,783 6,455 6,625 6,851 6,596 6,491 7 Rate (percent of civilian labor force) — 7.2 7.0 6.2 5.6 5.4 5.6 5.3 5.4 5.6 5.4 5.3 8 Not in labor force 62,745 62,744 62,888 63,208 62,909 63,396 63,090 63,045 62,799 63,038 63,102 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 97,519 99,525 102,310 105,020 105,281 105,489 106,057 106,271 106,425 106,729 107,052 10 Manufacturing 19,260 18,965 19,065 19,405 19,460 19,490 19,544 19,593 19,560 19,548 19,647 11 Mining 927 777 721 733 737 739 740 740 739 733 731 1? Contract construction 4,673 4,816 4,998 5,192 5,238 5,237 5,308 5,330 5,340 5,361 5,356 13 Transportation and public utilities 5,238 5,255 5,385 5,530 5,543 5,556 5,582 5,598 5,605 5,621 5,636 14 23,073 23,683 24,381 25,111 25,182 25,245 25,353 25,435 25,471 25,504 25,574 IS Finance 5,955 6,283 6,549 6,651 6,650 6,656 6,679 6,684 6,689 6,690 6,700 16 Service 22,000 23,053 24,196 25,078 25,163 25,216 25,472 25,561 25,662 25,724 25,869 17 Government 16,394 16,693 17,015 17,320 17,308 17,350 17,379 17,330 17,359 17,548 17,539 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

A48 Domestic Nonfinancial Statistics • January 1989 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1987 1988 Series Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 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 83.8 2 Mining.. 104.3 102.5 103.3 104.8 128.4 127.7 127.0 126.2 81.2 80.3 81.5 82.4 3 Utilities. 112.3 114.7 111.7 114.9 139.4 139.8 140.1 140.4 80.6 82.0 79.9 82.0 4 Manufacturing. 138.1 139.6 141.6 167.7 168.9 170.2 171.5 82.3 82.7 83.2 84.0 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 87.5 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 82.4 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 81.7 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 84.8 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 88.7 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 89.2 90.3 12 Paper 145.1 145.7 145.9 146.2 147.6 149.2 99.2 98.7 97.8 98.6 13 Chemical 135.5 133.5 135.7 152.0 153.5 155.4 89.1 87.0 87.3 88.9 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 86.2 Previous cycle2 Latest cycle 1988 High Low High Low Oct. Feb. Mar. Apr. May June July' Aug. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 81.9 82.4 82.4 82.7 82.9 83.0 83.7 83.8 83.8 84.0 16 Mining 92.8 87.8 95.2 76.9 80.6 79.5 80.6 82.3 80.8 8i. r 82.5 82.4 82.4 81.8 95.6 82.9 88.5 78.0 80.5 82.6 81.0 79.3 79.7 80.8r 81.5 83.9 80.6 80.8 17 Utilities 87.7 69.9 86.5 68.0 82.0 82.6 82.7 82.9 83.3 83.3 84.0 83.9 84.1 84.3 18 Manufacturing 91.9 68.3 89.1 65.0 86.2 86.6 86.9 86.9 87.0 86.6 87.8 87.3 87.3 87.5 19 Primary processing 86.0 71.1 85.1 69.5 80.1 80.7 80.7 81.2 81.7 81.7 82.2 82.3 82.5 82.8 20 Advanced processing.. 92.0 70.5 89.1 68.5 82.1 82.3 82.4 82.9 83.0 83.2 84.4 84.3 84.3 84.2 21 Materials 91.8 64.4 89.8 60.9 78.3 79.3 79.1 79.7 80.8 80.7 81.7 81.3 82.0 81.9 99.2 67.1 93.6 45.7 82.4 79.3 78.3 79.3 82.1 80.8 84.9 84.5 86.0 84.0 22 Durable goods 91.1 66.7 88.1 70.7 88.2 87.3 88.3 88.7 87.7 87.4r 88.9 88.8 88.5 88.4 23 Metal materials 24 Nondurable goods 92.8 64.8 89.4 68.8 90.4 88.5 89.9 90.1 88.8 88.9 90.4 90.4 89.9 89.8 98.4 70.6 97.3 79.9 97.4 97.8 97.8 98.1 98.1 97. lr 100.0 98.2 97.7 25 Textile, paper, and 92.5 64.4 87.9 63.5 88.0 85.7 87.5 88.0 86.9 87.0 88.8 89.3 88.6 chemical 26 Paper 94.6 86.9 94.0 82.3 84.9 84.1 84.1 84.5 83.3 84.4 86.2 86.9 85.6 85.1 2278 EnerCgyh emmaictearli als 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 A49 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted 1977 1987 1988 1987 GGrroouuppss por- aavvgg.. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July' Aug. Sept." OOcctt// Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 129.8 132.5 133.2 133.9 134.4 134.4 134.7 135.4 136.1 136.5 138.0 138.4 138.7 139.2 2 Products 57.72 138.3 140.9 141.0 141.3 142.7 143.4 143.6 144.1 145.0 145.3 146.5 147.1 147.4 148.4 Final products 44.77 136.8 139.3 139.2 139.8 141.1 141.6 141.8 142.5 143.5 144.0 145.0 145.7 146.0 146.8 4 Consumer goods 25.52 127.7 129.0 129.4 129.8 131.2 131.3 131.2 131.9 132.7 133.0 134.2 134.9 134.7 135.5 Equipment 19.25 148.8 153.0 152.2 153.1 154.3 155.3 155.9 156.5 157.7 158.5 159.4 159.9 160.9 161.7 6 Intermediate products 12.94 143.4 146.1 147.3 146.5 148.1 149.4 149.9 149.6 150.4 150.0 151.6 152.2 152.5 153.9 7 Materials 42.28 118.2 121.2 122.5 123.7 123.0 122.1 122.5 123.6 123.9 124.5 126.4 126.6 126.8 126.8 Consumer goods 8 Durable consumer goods 6.89 120.2 124.3 123.9 120.3 121.7 120.6 120.4 123.3 125.6 125.3 125.3 125.4 125.6 127.0 9 Automotive products 2.98 118.5 124.3 121.3 115.4 118.7 117.6 120.6 121.9 127.1 127.1 124.4 123.8 126.1 128.2 10 Autos and trucks 1.79 115.1 122.2 118.7 110.2 112.8 111.8 116.4 118.0 126.9 125.3 120.8 122.8 124.6 127.9 11 Autos, consumer 1.16 90.7 94.7 91.9 83.7 77.5 79.5 86.3 91.0 98.9 99.0 93.8 92.6 97.4 100.7 17 Trucks, consumer .63 160.5 173.2 168.5 159.5 178.3 171.6 172.2 168.2 178.9 174.1 170.8 179.0 175.3 N Auto parts and allied goods 1.19 123.5 127.5 125.2 123.3 127.7 126.4 126.9 127.8 127.4 129.7 129.9 125.3 128.3 128.7 14 Home goods 3.91 121.6 124.3 125.8 123.9 124.0 122.8 120.2 124.3 124.4 123.9 125.9 126.6 125.1 126.1 15 Appliances, A/C and TV 1.24 141.5 145.7 150.1 142.7 142.2 140.6 132.8 143.2 142.2 138.0 143.3 146.5 143.3 145.7 16 Appliances and TV 1.19 142.1 146.1 150.5 142.6 140.9 141.4 132.7 142.2 143.0 137.1 143.8 146.1 142.1 17 Carpeting and furniture .96 130.7 132.9 133.5 133.9 134.2 132.3 133.1 133.1 135.8 135.9 136.6 136.0 134.8 18 Miscellaneous home goods 1.71 102.0 104.1 103.9 104.8 105.2 104.7 103.9 105.7 105.2 107.0 107.4 107.0 106.6 19 Nondurable consumer goods 18.63 130.5 130.8 131.5 133.3 134.7 135.3 135.1 135.1 135.4 135.8 137.5 138.4 138.0 138.6 20 Consumer staples 15.29 137.3 137.4 138.3 140.7 142.3 142.9 142.5 142.5 143.1 143.5 145.3 146.5 146.0 146.9 71 Consumer foods and tobacco 7.80 136.2 137.5 137.3 139.2 140.3 140.8 139.4 138.3 139.2 139.3 141.1 141.3 141.4 22 Nonfood staples 7.49 138.5 137.2 139.4 142.2 144.3 145.0 145.7 146.8 147.0 147.9 149.6 151.9 150.8 151.7 71 Consumer chemical products 2.75 162.9 160.0 163.5 167.7 170.7 171.7 172.7 175.6 177.9 179.5 181.8 184.0 185.4 24 Consumer paper products 1.88 151.8 151.8 152.8 157.0 157.1 157.5 159.1 161.4 162.4 162.8 164.0 164.3 165.3 25 Consumer energy 2.86 106.3 105.8 107.4 108.0 110.6 111.3 111.0 109.6 107.3 107.7 109.3 113.0 108.1 76 Consumer fuel 1.44 93.1 92.4 93.2 95.4 95.4 97.0 97.9 98.9 94.3 93.0 94.6 95.5 93.7 27 Residential utilities 1.42 119.8 119.4 121.8 120.7 126.0 125.8 124.5 120.5 120.6 122.6 124.4 130.9 Equipment 78 Business and defense equipment 18.01 153.6 157.2 156.6 157.8 159.2 160.3 160.8 161.4 162.7 163.5 164.6 116655..11 166.2 116677..22 29 Business equipment 14.34 144.5 148.7 148.3 149.8 151.2 152.4 153.3 154.6 156.9 158.1 159.3 160.1 161.4 162.7 30 Construction, mining, and farm 2.08 62.2 66.5 66.3 67.4 67.1 67.6 68.3 70.8 71.8 72.4 73.6 72.5 73.4 74.2 31 Manufacturing 3.27 117.9 120.5 120.6 122.2 125.4 124.9 127.0 127.7 128.3 130.3 132.4 134.5 137.1 139.5 37 Power 1.27 82.6 83.0 83.1 84.2 86.2 88.3 87.8 87.0 87.4 88.3 89.8 91.3 93.0 94.0 33 Commercial 5.22 226.5 232.4 232.1 235.5 238.0 240.3 239.9 241.5 245.7 247.1 248.2 249.1 249.7 249.9 34 Transit 2.49 108.4 112.5 111.2 109.1 106.5 108.2 111.1 112.3 115.3 115.7 115.9 115.5 116.9 119.5 35 Defense and space equipment 3.67 188.9 190.3 188.7 188.9 190.6 191.0 189.9 187.9 185.5 184.6 184.9 184.7 184.7 184.6 Intermediate products 36 Construction supplies 5.95 131.5 133.3 134.2 133.8 136.8 137.7 137.3 137.6 138.8 137.6 138.4 138.1 138.6 140.4 37 Business supplies 6.99 153.5 157.1 158.4 157.4 157.8 159.4 160.7 159.9 160.3 160.6 162.8 164.2 164.4 38 General business supplies 5.67 158.6 162.3 164.3 163.3 163.1 165.0 166.6 165.7 165.5 165.9 168.6 170.3 171.0 39 Commercial energy products 1.31 131.1 134.6 132.9 131.8 135.0 135.3 135.3 134.6 137.8 137.5 137.6 137.7 136.0 Materials 40 Durable goods materials 20.50 125.0 128.7 130.2 132.0 131.8 131.4 131.3 132.7 134.8 134.9 136.8 136.5 138.0 138.2 41 Durable consumer parts 4.92 100.9 102.3 103.1 104.6 104.7 104.4 103.5 106.2 110.0 110.3 110.1 109.6 110.3 111.0 42 Equipment parts 5.94 159.0 162.2 163.2 165.3 167.4 167.6 167.3 168.9 170.8 171.6 174.1 173.6 174.8 175.5 43 Durable materials n.e.c 9.64 116.4 121.6 123.6 125.5 123.7 123.0 123.4 124.0 125.3 124.8 127.5 127.4 129.5 129.1 44 Basic metal materials 4.64 86.7 95.3 96.5 100.0 92.9 91.4 90.5 91.6 94.8 93.7 98.4 97.5 100.2 97.7 45 Nondurable goods materials 10.09 125.8 128.2 129.6 132.5 129.9 128.1 130.1 131.1 130.1 130.1 132.8 133.0 133.1 133.3 46 Textile, paper, and chemical materials 7.53 127.6 131.0 132.3 135.6 132.7 129.9 132.4 133.3 131.9 132.1 135.3 135.9 135.6 136.0 47 Textile materials 1.52 111.7 113.0 112.7 113.6 112.6 110.2 112.7 111.9 107.5 107.5 108.5 110.0 110.8 48 Pulp and paper materials 1.55 141.0 142.0 144.4 149.0 148.0 144.4 144.8 145.8 146.4 145.4 150.3 148.0 147.8 49 Chemical materials 4.46 128.4 133.4 134.7 138.4 134.2 131.5 134.8 136.2 135.1 135.8 139.2 140.5 139.9 50 Miscellaneous nondurable materials ... 2.57 120.4 119.7 121.7 123.3 121.8 123.0 123.2 124.6 125.1 124.2 125.6 124.7 51 Energy materials 11.69 99.8 101.8 102.8 101.7 101.4 100.6 100.6 101.0 99.5 101.3 102.7 103.5 101.9 101.2 52 Primary energy 7.57 105.0 106.8 108.4 107.7 107.3 104.8 105.0 106.7 104.0 105.6 106.8 106.6 106.4 53 Converted fuel materials 4.12 90.3 92.7 92.6 90.7 90.6 93.0 92.6 90.5 91.2 93.5 95.3 97.9 93.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • January 1989 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1977 1987 1988 Groups c S o I d C e pr t o io p n o r- a 1 v 98 g 7 . Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July' Aug. Sept.p Oct, Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities. 15.79 104.3 106.8 107.9 107.3 107.8 106.8 106.7 107.1 106.0 106.8 108.1 109.2 107.4 106.9 2 Mining 9.83 100.7 103.6 104.6 104.6 103.3 101.5 102.7 104.7 102.6 103.0 104.3 104.0 103.8 102.8 3 Utilities 5.96 110.3 112.1 113.2 111.7 115.2 115.6 113.3 111.0 111.6 113.2 114.4 117.8 113.3 113.7 4 Manufacturing 84.21 134.6 137.3 137.9 138.9 139.4 139.5 140.0 140.8 141.8 142.1 143.6 143.9 144.5 145.2 5 Nondurable 35.11 136.7 138.1 139.6 141.3 141.4 141.1 141.7 142.3 142.1 142.6 144.6 145.0 145.3 145.7 6 Durable 49.10 133.1 136.8 136.7 137.3 137.9 138.4 138.8 139.7 141.5 141.7 142.9 143.1 144.0 144.8 Mining 7 Metal 10 .50 77.5 85.6 90.4 96.5 91.5 83.9 84.9 86.9 86.0 82.2 94.0 96.5 8 Coal 11.12 1.60 131.8 140.3 142.9 140.6 140.2 133.7 129.1 136.0 127.8 126.9 141.5 137.2 142.2 142.2 9 Oil and gas extraction 13 7.07 92.7 94.1 94.2 94.1 93.1 92.4 94.8 95.5 94.6 95.8 93.3 93.6 92.1 10 Stone and earth minerals . 14 .66 128.2 131.0 134.1 135.6 132.1 134.3 136.9 141.2 140.1 137.4 140.2 141.2 140.1 Nondurable manufactures 11 Foods 20 7.% 137.7 138.0 138.9 140.1 141.2 141.9 141.1 140.3 141.0 141.3 143.3 143.1 143.0 12 Tobacco products 21 .62 103.4 103.7 106.5 110.5 105.8 107.0 107.2 107.2 107.2 104.5 100.6 105.1 13 Textile mill products 22 2.29 115.8 116.8 117.3 118.2 116.2 115.3 117.0 117.3 114.6 114.3 117.1 116.3 116.6 14 Apparel products 23 2.79 107.4 108.0 109.4 107.8 108.7 108.5 108.7 109.2 108.6 109.3 109.4 109.0 15 Paper and products 26 3.15 144.4 146.0 148.3 150.6 149.9 148.0 149.1 149.2 149.5 148.6 152.3 150.8 150.3 16 Printing and publishing 27 4.54 172.0 175.2 175.7 176.9 177.5 178.7 180.4 181.8 180.7 182.3 184.9 186.1 187.4 187.5 17 Chemicals and products 28 8.05 140.1 141.5 144.4 147.9 147.9 145.4 146.4 148.9 149.1 150.5 153.4 154.7 155.2 18 Petroleum products 29 2.40 93.5 94.6 93.3 96.1 96.3 95.9 98.4 98.5 95.2 94.1 95.0 95.9 95.4 96.9 19 Rubber and plastic products. 30 2.80 163.6 166.7 169.9 170.6 170.5 172.3 172.2 172.3 173.4 174.4 175.4 175.0 176.6 20 Leather and products 31 .53 60.0 59.6 60.7 57.5 58.3 59.7 59.5 58.0 57.1 58.9 59.1 59.4 60.2 Durable manufactures 21 Lumber and products 24 2.30 130.3 129.8 134.0 133.6 136.3 139.0 137.8 138.0 139.8 136.4 136.6 133.5 133.0 22 Furniture and fixtures 25 1.27 152.8 156.0 158.5 159.4 158.0 158.3 159.4 159.2 160.5 161.2 162.9 163.5 163.5 23 Clay, glass, and stone products... 32 2.72 119.1 118.9 120.5 120.1 120.4 121.6 122.5 121.4 121.5 123.4 122.2 122.3 122.6 24 Primary metals 33 5.33 81.5 90.6 90.2 90.6 86.5 86.4 85.1 85.3 89.2 87.5 91.5 91.1 93.1 91.6 25 Iron and steel 331.2 3.49 70.8 82.0 79.7 81.9 77.8 77.4 74.2 74.5 78.6 74.2 80.2 79.1 81.3 26 Fabricated metal products 34 6.46 111.0 113.5 113.6 115.8 117.1 117.6 118.8 118.8 119.8 120.4 121.7 121.8 122.6 123.2 27 Nonelectrical machinery.. 35 9.54 152.7 158.0 157.2 161.0 162.9 163.6 164.6 167.2 170.3 171.2 173.1 174.1 176.0 177.7 28 Electrical machinery 36 7.15 172.3 175.5 175.6 175.9 177.4 177.8 176.6 178.7 179.1 179.5 181.5 182.5 182.9 183.3 29 Transportation equipment 37 9.13 129.2 132.0 130.4 128.1 128.6 128.4 130.0 130.4 133.1 132.8 131.9 131.7 132.3 134.1 30 Motor vehicles and parts 371 5.25 111.8 116.0 114.0 110.2 109.7 109.3 113.0 114.8 119.6 119.1 116.6 117.3 118.6 121.2 31 Aerospace and miscellaneous transportation equipment 72-6.9 3.87 152.8 153.7 152.7 152.4 154.2 154.5 153.0 151.5 151.5 151.4 152.7 151.1 151.0 151.5 32 Instruments 38 2.66 143.9 146.7 147.8 145.5 148.2 149.2 149.7 150.5 151.3 153.0 156.4 156.4 157.0 158.0 33 Miscellaneous manufactures 39 1.46 102.6 104.6 104.5 105.6 105.0 104.4 105.1 105.9 106.0 107.6 107.8 108.0 108.0 Utilities 34 Electric. 44..1177 112266..66 112266..88 112277..55 112255..66 113300..33 113300..77 112299..00 112277..66 112299..77 113322..11 113344..66 113388..88 113322..11 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total. 517.5 1,735.8 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 1,822.3 1,827.1 1,830.0 1,851.9 36 Final 405.7 1,333.8 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 1,398.9 1,403.1 1,405.7 1,421.8 37 Consumer goods. 272.7 866.0 876.6 879.8 881.2 893.6 893.7 893.2 899.1 898.9 893.6 895.6 899.8 897.4 908.7 38 Equipment 133.0 467.8 484.4 480.1 478.2 481.9 487.3 492.7 494.7 498.3 500.7 503.2 503.3 508.3 513.1 39 Intermediate 111.9 402.0 413.2 412.5 419.4 415.1 416.5 421.6 418.4 423.0 419.6 423.4 423.9 424.5 430.1 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 A51 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1987 1988 IItteemm 11998855 11998866 11998877 Dec. Jan. Feb. Mar. Apr. May June July' Aug/ Sept. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,733 1,750 1,535 1,372 1,248 1,429 1,476 1,449 1,436 1,493 1,420 1,464 1,394 2 1-family 957 1,071 1,024 957 918 1,003 1,030 960 982 1,002 984 1,022 974 3 2-or-more-family 777 679 511 415 330 426 446 489 454 491 436 442 420 4 Started 1,742 1,805 1,621 1,399 1,382 1,519 1,529 1,584 1,393 1,465 1,477 1,461 1,449 5 1-family 1,072 1,179 1,146 1,035 1,016 1,102 1,172 1,093 1,004 1,092 1,068 1,078 1,042 6 2-or-more-family 669 626 474 364 366 417 357 491 389 373 409 383 407 7 Under construction, end of period1 . 1,063 1,074 987 1,016 1,008 983 999 999 984 982 974 %3 954 8 1-family 539 583 591 618 614 596 617 622 610 609 606 602 597 9 2-or-more-family 524 490 397 398 394 387 382 377 374 373 368 361 357 10 Completed 1,703 1,756 1,669 1,624 1,550 1,452 1,598 1,665 1,450 1,518 1,529 1,541 1,523 11 1-family 1,072 1,120 1,123 1,104 1,098 1,043 1,094 1,059 1,090 1,106 1,077 1,076 1,078 12 2-or-more-family 631 637 546 520 452 409 504 606 360 412 452 465 445 13 Mobile homes shipped 284 244 233 227 200 208 212 213 216 230 206 223 228 Merchant builder activity in 1-family units 14 Number sold 688 748 672 586 579 648 664 681 681 718r 700 715 665599 15 Number for sale, end of period 350 361 370 365 368 359 372 367 370 367 364 363 364 Price (thousands of dollars)2 Median 16 Units sold 84.3 92.2 104.7 111.8 119.0 110.9 108.9 111.0 110.0 111.5r 120.0 110.0 118.9 17 Units sold 101.0 112.2 127.9 136.2 144.4 137.6 133.2 135.6 133.5 136.5r 142.5 140.0 146.3 EXISTING UNITS (1-family) 18 Number sold 3,217 3,566 3,530 3,330 3,170 3,250 3,330 3,520 3,590 3,820 3,630 3,710 3,670 Price of units sold (thousands of dollars)2 19 Median 75.4 80.3 85.6 85.4 87.4 88.1 8877..99 87.3 88.8 9900..22 9900..77 9911..44 8888..22 20 Average 90.6 98.3 106.2 107.1 108.7 110.4 110.7 108.7 111.9 115.4 1(4.8 115.1 112.3 Value of new construction3 millions of dollars) CONSTRUCTION 21 Total put in place 355,735 386,093 398,848 410,870 395,264 392,456 403,555 396,238 398,473 395,714 401,777 401,113 403,370 22 Private 291,665 314,651 323,819 331,641 321,550 317,754 324,257 318,515 320,194 317,708 322,497 324,352 325,211 23 Residential 158,475 187,147 194,772 195,822 195,168 192,097 195,554 192,026 190,374 188,071 192,777 193,912 195,277 24 Nonresidential, total 133,190 127,504 129,047 135,819 126,382 125,657 128,703 126,489 129,820 129,637 129,720 130,440 129,934 Buildings 25 Industrial 15,769 13,747 13,707 14,130 13,480 13,489 14,546 13,849 13,907 13,676 13,183 12,931 1133,,004433 26 Commercial 59,629 56,762 55,448 55,831 53,555 53,571 54,843 56,169 57,447 56,585 56,658 56,429 55,622 27 Other 12,619 13,216 15,464 17,708 16,954 17,101 17,301 16,382 16,847 16,757 16,148 16,601 16,860 28 Public utilities and other 45,173 43,779 44,428 48,150 42,393 41,496 42,013 40,089 41,619 42,619 43,731 44,479 44,409 29 Public 64,070 71,437 75,028 79,228 73,715 74,702 79,298 77,723 78,278 78,007 79,280 76,761 78,158 30 Military 3,235 3,868 4,327 4,879 4,172 3,280 4,216 3,872 3,547 4,844 4,182 4,043 4,205 31 Highway 21,540 22,681 22,758 25,274 24,808 25,348 26,963 26,912 25,254 24,822 27,548 23,628 23,579 32 Conservation and development... 4,777 4,646 5,162 5,759 4,038 4,535 4,899 4,226 4,460 4,5% 4,884 4,853 4,972 33 Other 34,518 40,242 42,781 43,316 40,697 41,539 43,220 42,713 45,017 43,745 42,666 44,237 45,402 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 and current figures are available from the originating agency. Permit Construction Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • January 1989 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 1987 1988 1988 lll OOO eeevvv ccc eee ttt... lll 11998877 11998888 111999888888''' OOcctt.. OOcctt.. Dec. Mar. June' Sept.r Juner July' Aug. Sept. Oct. CONSUMER PRICES2 (1982-84=100) 1 All items 4.5 4.2 3.2 4.2 4.5 4.8 .3 .4 .4 .3 .4 120.2 2 3.6 5.2 2.8 1.4 7.1 9.9 .6 1.0 .6 .8 .2 120.3 3 Energy items 8.1 .1 -3.9 -4.9 4.2 2.7 -.2 .3 .9 -.6 .1 89.9 4 All items less food and energy 4.3 4.5 4.4 5.4 4.3 4.0 .4 .3 .2 .4 .5 125.5 5 Commodities 3.8 3.8 2.5 4.7 3.9 3.1 .2 .3 -.3 .8 .7 118.0 6 Services 4.6 4.8 5.0 5.9 4.5 4.1 .5 .4 .5 .1 .5 129.9 PRODUCER PRICES (1982=100) 1 Finished goods 2.5 2.9 -1.9 2.7 3.8 6.5 .2 .7 .6 .4 .0 109.3 8 Consumer foods .3 4.5 -5.7 6.0 8.2 10.0 .9 .7 .4 1.2 -.1 114.6 9 Consumer energy 13.7 -5.9 -9.6 -18.5 .7 -.7 -2.8 1.0 2.2 -3.3 .3 58.7 10 Other consumer goods 2.4 4.1 1.7 5.7 2.4 6.6 .3 .9 .3 .4 .0 120.3 11 Capital equipment 1.4 2.9 -.7 3.2 2.5 6.5 .2 .4 .4 .8 -.3 115.8 12 Intermediate materials3 5.0 4.9 4.3 4.3 7.8 4.9 .6 .5 .4 .4 .1 108.3 13 Excluding energy 4.3 7.1 7.2 8.2 6.9 7.2 .4 .7 .4 .6 .5 117.4 Crude materials 14 Foods 1.3 15.9 -4.8 17.7 31.0 23.0 4.0 1.4 2.2 1.6 1.4 111.4 15 Energy 13.0 -15.8 -15.2 -24.1 7.8 -26.1 -2.0 -4.4 .1 -3.1 -2.2 63.5 16 Other 24.3 5.5 18.0 15.9 -6.5 8.5 .2 1.8 .9 -.6 .2 133.3 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 A53 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1987 1988 AAccccoouunntt 11998855 11998866 11998877 Q3 Q4 Ql Q2 Q3' 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 4,909.2 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 3,261.5 3 Durable goods 372.2 406.5 421.9 441.4 422.0 437.8 449.8 451.8 4 Nondurable goods 911.2 943.6 997.9 1,006.6 1,012.4 1,016.2 1,036.6 1,061.9 5 Services 1,345.6 1,457.3 1,592.3 1,610.2 1,641.9 1,674.1 1,708.2 1,747.7 6 Gross private domestic investment 643.1 665.9 712.9 702.8 764.9 763.4 758.1 771.4 7 Fixed investment 631.8 650.4 673.7 688.3 692.9 698.1 714.4 723.0 8 Nonresidential 442.9 433.9 446.8 462.1 464.1 471.5 487.8 494.7 9 Structures 153.2 138.5 139.5 143.0 147.7 140.1 142.3 143.9 10 Producers' durable equipment 289.7 295.4 307.3 319.1 316.3 331.3 345.5 350.7 11 Residential structures 188.8 216.6 226.9 226.2 228.8 226.6 226.5 228.3 12 Change in business inventories 11.3 15.5 39.2 14.5 72.0 65.3 43.7 48.4 13 Nonfarm 14.6 17.4 40.7 17.8 72.8 49.4 33.1 39.5 14 Net exports of goods and services -78.0 -104.4 -123.0 -125.2 -125.7 -112.1 -90.4 -82.4 15 Exports 370.9 378.4 428.0 440.4 459.7 487.8 507.1 531.5 16 Imports 448.9 482.8 551.1 565.6 585.4 599.9 597.5 613.9 17 Government purchases of goods and services 820.8 871.2 924.7 932.2 947.3 945.2 961.6 958.7 18 Federal 355.2 366.2 382.0 386.3 391.4 377.7 382.2 370.9 19 State and local 465.6 505.0 542.8 546.0 555.9 567.5 579.4 587.8 By major type of product 70 Final sales, total 4,003.6 4,224.7 4,487.5 44,,555533..55 4,590.7 44,,665599..22 44,,778800..11 44,,885566..66 71 Goods 1,641.2 1,697.9 1,792.5 1,812.9 1,849.4 1,879.4 1,928.0 1,964.8 77 Durable 706.5 725.3 776.3 792.2 808.7 819.3 849.5 879.3 73 Nondurable 934.6 972.6 1,016.3 1,020.7 1,040.7 1,060.1 1,078.5 1,085.5 74 Services 1,968.3 2,118.3 2,295.7 2,314.4 2,363.9 2,405.2 2,451.5 2,497.6 25 Structures 405.4 424.0 438.4 440.6 449.5 439.9 444.3 446.8 26 Change in business inventories 11.3 15.5 39.2 14.5 72.0 65.3 43.7 48.4 77 Durable goods 6.4 4.2 26.6 2.9 50.5 26.6 17.8 42.6 28 Nondurable goods 4.9 11.3 12.6 11.6 21.6 38.6 25.9 5.8 MEMO 29 Total GNP in 1982 dollars 3,618.7 3,721.7 3,847.0 3,865.3 3,923.0 3,956.1 3,985.2 4,010.9 NATIONAL INCOME 30 3,234.0 3,437.1 3,678.7 3,708.0 3,802.0 3,850.8 3,928.8 3,996.2 31 Compensation of employees 2,367.5 2,507.1 2,683.4 2,702.8 2,769.9 2,816.4 2,874.0 2,932.5 37 Wages and salaries 1,975.2 2,094.0 2,248.4 2,265.3 2,324.8 2,358.7 2,410.0 2,461.4 33 Government and government enterprises 372.0 393.7 420.1 423.2 429.2 437.1 442.9 449.1 34 Other 1,603.4 1,700.3 1,828.3 1,842.1 1,895.6 1,921.6 1,967.1 2,012.4 35 Supplement to wages and salaries 392.4 413.1 435.0 437.5 445.1 457.7 464.0 471.1 36 Employer contributions for social insurance 204.8 217.0 227.1 228.2 232.7 243.1 247.5 251.6 37 Other labor income 187.6 196.1 207.9 209.3 212.4 214.6 216.5 219.5 38 Proprietors' income1 255.9 286.7 312.9 306.8 326.0 323.9 328.8 322.1 39 Business and professional1 225.6 250.3 270.0 271.5 279.0 279.2 285.3 291.7 40 Farm1 30.2 36.4 43.0 35.2 47.0 44.7 43.4 30.4 41 Rental income of persons2 9.2 12.4 18.4 18.1 20.5 20.5 19.1 20.1 47 Corporate profits' 282.3 298.9 310.4 322.0 316.1 316.2 326.5 323.7 43 Profits before tax3 224.3 236.4 276.7 289.4 281.9 286.2 305.9 307.7 44 Inventory valuation adjustment -1.7 8.3 -18.0 -19.5 -18.2 -19.4 -27.4 -29.0 45 Capital consumption adjustment 59.7 54.2 51.7 52.1 52.4 49.4 48.0 45.1 46 Net interest 319.0 331.9 353.6 358.3 369.5 373.9 380.6 397.7 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

A54 Domestic Nonfinancial Statistics • January 1989 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 1987 Q3 Q4 Q1 Q2 Q3r 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 4,092.3 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 2,461.4 3 Commodity-producing industries 608.9 625.5 649.8 652.8 665.5 676.0 689.1 701.3 4 Manufacturing 460.9 473.1 490.3 492.6 501.3 509.6 517.4 525.9 5 Distributive industries 473.2 498.9 531.7 536.8 547.3 558.2 572.1 585.4 6 Service industries 521.3 575.9 646.8 652.4 682.8 687.4 705.9 725.7 7 Government and government enterprises 372.0 393.7 420.1 423.0 429.5 437.1 442.9 449.1 8 Other labor income 187.6 196.1 207.9 209.3 212.4 214.6 216.5 219.5 9 Proprietors' income 255.9 286.7 312.9 306.8 326.0 323.9 328.8 322.1 10 Business and professional 225.6 250.3 270.0 271.5 279.0 279.2 285.3 291.7 11 Farm1 30.2 36.4 43.0 35.2 47.0 44.7 43.4 30.4 12 Rental income of persons2 9.2 12.4 18.4 18.1 20.5 20.5 19.1 20.1 13 Dividends 78.7 82.8 88.6 89.9 91.9 93.5 95.0 97.3 14 Personal interest income 478.0 499.1 527.0 533.0 550.0 554.2 563.7 581.3 15 Transfer payments 489.8 521.1 548.8 551.7 556.8 576.3 582.8 587.3 16 Old-age survivors, disability, and health insurance benefits ... 253.4 269.3 282.9 284.5 286.5 298.1 300.4 303.1 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 4,092.3 19 LESS: Personal tax and nontax payments 486.6 511.4 570.3 576.2 591.0 575.8 601.0 586.4 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 3,506.0 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 3,362.4 22 EQUALS: Personal saving 125.4 121.7 104.2 72.6 144.0 149.9 127.8 143.6 MEMO Per capita (1982 dollars) 23 Gross national product 15,120.6 15,401.2 15,770.0 15,834.9 16,031.8 1166,,112277..66 1166,,221133..11 1166,,227711..44 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 10,565.9 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 11,360.0 26 Saving rate (percent) 4.4 4.0 3.2 2.3 4.3 4.4 3.7 4.1 GROSS SAVING 27 Gross saving 533.5 537.2 560.4 556.8 603.4 627.0 634.1 656.4 28 Gross private saving 665.3 681.6 665.3 642.2 714.1 726.3 711.2 725.2 29 Personal saving 125.4 121.7 104.2 72.6 144.0 149.9 127.8 143.6 30 Undistributed corporate profits1 102.6 104.1 81.1 85.0 80.5 78.1 8800..11 73.5 31 Corporate inventory valuation adjustment -1.7 8.3 -18.0 -19.5 -18.2 -19.4 --2277..44 -29.0 Capital consumption allowances 32 Corporate 268.6 228822..44 229977..55 229999..77 330033..77 330099..88 331133..33 331177..22 33 Noncorporate 168.7 173.5 182.5 184.9 185.8 188.5 189.9 190.9 34 Government surplus, or deficit (-), national income and product accounts -131.8 -144.4 -104.9 -85.5 -110.7 -99.2 -77.1 --6688..88 35 Federal -196.9 -205.6 -157.8 -138.3 -160.4 -155.1 -133.3 -124.8 36 State and local 65.1 61.2 52.9 52.9 49.7 55.8 56.2 55.9 37 Gross investment 528.7 523.6 552.3 541.7 597.0 612.0 629.0 647.6 38 Gross private domestic 643.1 665.9 712.9 702.8 764.9 763.4 758.1 771.4 39 Net foreign -114.4 -142.4 -160.6 -161.1 -167.8 -151.3 -129.1 -123.8 40 Statistical discrepancy -4.8 -13.6 -8.1 -15.1 -6.4 -15.0 -5.1 -8.8 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 A55 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1987 1988 Item credits or debits 1985 1986 1987 Q2 Q3 Q4 Q1 Q2" -115,102 -138,827 -153,964 -40,852 -41,967 -33,523 -36,938 -33,336 Not seasonally adjusted . -41,799 -47,330 -31,803 -32,179 -34,228 Merchandise trade balance2 -122,148 — I44,547 -160,'280 -39,552 -39,665 -41,192 -35,184 -29,937 Merchandise exports 215,935 223,969 249,570 59,864 64,902 68,013 75,300 79,665 Merchandise imports -338,083 -368,516 -409,850 -99,416 -104,567 -109,205 -110,484 -109,602 Military transactions, net -3,431 -4,372 -2,369 -179 -851 -1,261 -1,033 -865 Investment income, net 25,936 23,143 20,374 1,692 1,067 12,539 1,159 -1,747 Other service transactions, net -449 2,257 1,755 13 87 479 1,241 2,120 Remittances, pensions, and other transfers . -3,786 -3,571 -3,434 -884 -855 -828 -882 -787 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 1 1 2 3 Ch G an o g ld e in U.S. official reserve assets (increase, -). -3,858 0 312 0 9,149 0 3,419 0 32 0 3,741 0 1,503 0 3 0 9 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 -972 -1,757 -4,467 "i,61(j 21 U.S. direct investments abroad, net -18,068 -27,811 -44,456 -7,870 -19,676 -6,423 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 obligates -301 -1,214 1,570 256 714 662 -121 192 25 Other U.S. government liabilities* 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 -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 -7,5% -2,431 -2,835 4% 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 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 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 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 3. Reporting banks include all kinds of depository institutions besides commer- Business (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

A56 International Statistics • January 1989 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are not seasonally adjusted. 1988 IItteemm 11998855 11998866 11998877 Mar. Apr. May June July Aug/ Sept. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 218,815 227,159 254,122 29,106 26,335 28,143 26,839 25,098 26,538 27,441 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 C.I.F. value 352,463 382,295 424,442 38,633 36,528 37,657 40,158 37,084 39,370 37,939 3 Customs value 345,276 365,438 406,241 37,030 35,027 36,147 38,590 35,583 37,741 36,454 Trade balance 4 C.I.F. value -133,648 -155,137 -170,320 -9,528 -10,193 -9,514 -13,319 -11,986 -12,832 -10,498 5 Customs value -132,129 -138,279 -152,119 -7,924 -8,692 -8,004 -11,751 -10,485 -11,203 -9,013 1. The Census basis data differ from merchandise trade data shown in table tions; military payments are excluded and shown separately as indicated above. 3.10, U.S. International Transactions Summary, for reasons of coverage and As of Jan. 1,1987 census data are released 45 days after the end of the month; 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 Type 1985 1986 1987 Apr. May June July Aug. Sept. Oct." 1 Total 43,186 48,511 45,798 42,730 41,949 41,028 43,876 47,778 47,788 50,204 2 Gold stock, including Exchange Stabilization Fund1 11,090 11,064 11,078 11,063 11,063 11,063 11,063 11,061 11,062 11,062 3 Special drawing rights2'3 . 7,293 8,395 10,283 9,589 9,543 9,180 8,984 9,058 9,074 9,464 4 Reserve position in International Monetary Fund2 11,947 11,730 11,349 10,803 10,431 9,992 9,773 9,642 9,637 10,075 5 Foreign currencies4 12,856 17,322 13,088 11,275 10,912 10,793 14,056 18,017 18,015 19,603 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 Apr. May June July Aug. Sept. Oct." 1 Deposits 480 287 244 215 297 381 269 230 338 301 Assets held in custody 2 U.S. Treasury securities2 121,004 155,835 195,126 224,725 226,341 223,127 223,296 221,715 221,119 226,533 3 Earmarked gold 14,245 14,048 13,919 13,719 13,654 13,662 13,666 13,658 13,653 13,637 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 A57 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data1 Millions of dollars, end of period 1988 AAsssseett aaccccoouunntt 11998855 11998866 11998877 Mar. Apr. May June July Aug. Sept.p All foreign countries 1 Total, all currencies 458,012 456,628 518,618 502,398 488,939 492,844 487,677 488,283 487,895 490,582 7 Claims on United States 119,706 114,563 138,034 135,504 139,176 141,790r 140,932 147,662 157,021 155,386 3 Parent bank 87,201 83,492 105,845 99,109 102,957 104,299 104,405 109,929 117,525 115,286 4 Other banks in United States 13,057 13,685 16,416 14,663 13,332 14,625r 14,424 15,954 16,176 16,121 5 Nonbanks 19,448 17,386 15,773 21,732 22,887 22,866 22,103 21,779 23,320 23,979 6 Claims on foreigners 315,676 312,955 342,520 328,163 314,348 315,302'' 311,308' 305,556 295,270 298,466 7 Other branches of parent bank 91,399 96,281 122,155 108,972 103,090 102,931 106,722 103,646' 98,299 102,355 8 Banks 102,960 105,237 108,859 106,771 101,233r 103,427' 100,669' 99,66C 98,982 98,563 9 Public borrowers 23,478 23,706 21,832 21,748 20,827 20,991 20,438 19,276 18,709 18,444 10 Nonbank foreigners 97,839 87,731 89,674 90,672 89,198' 87,953' 83,479' 82,974' 79,280 79,104 11 Other assets 22,630 29,110 38,064 38,731 35,415 35,752 35,437' 35,065 35,604 36,730 12 Total payable in U.S. dollars 336,520 317,487 350,107 333,874 327,736 334,112 334,990 336,233 342,906 340,944 n Claims on United States 116,638 110,620 132,023 128,935 133,289 136,078r 135,348 141,415 151,581 149,764 14 Parent bank 85,971 82,082 103,251 95,844 100,320 101,578 101,422 106,792 114,943 112,621 15 Other banks in United States 12,454 12,830 14,657 13,346 12,318 13,60c 13,661 14,434 14,901 14,687 16 Nonbanks 18,213 15,708 14,115 19,745 20,651 20,900 20,265 20,189 21,737 22,456 17 Claims on foreigners 210,129 195,063 202,428 190,593 179,722 182,98C 183,568 179,076 174,433 174,314 18 Other branches of parent bank 72,727 72,197 88,284 81,692 75,654 76,136 79,774 78,071' 73,792 76,506 19 Banks 71,868 66,421 63,707 58,109 54,588 57,102 55,234 54,189 54,839 52,503 ?0 Public borrowers 17,260 16,708 14,730 14,853 14,407 14,342 13,851 13,247 12,933 12,770 21 Nonbank foreigners 48,274 39,737 35,707 35,939 35,073 35,40C 34,709 33,569' 32,869 32,535 22 Other assets 9,753 11,804 15,656 14,346 14,725 15,054 16,074 15,742 16,892 16,866 United Kingdom 23 Total, all currencies 148,599 140,917 158,695 155,657 152,592 156,184 151,835 151,017 149,646 147,329 74 Claims on United States 33,157 24,599 32,518 29,581 31,618 32,832 33,852 35,708 36,307 32,048 75 Parent bank 26,970 19,085 27,350 24,580 26,155 27,506 28,535 30,615 30,767 26,661 76 Other banks in United States 1,106 1,612 1,259 1,191 1,013 1,360 1,322 1,064 1,197 1,238 77 Nonbanks 5,081 3,902 3,909 3,810 4,450 3,966 3,995 4,029 4,343 4,149 78 Claims on foreigners 110,217 109,508 115,700 116,975 112,261 114,452 107,856 105,594 103,527 105,824 79 Other branches of parent bank 31,576 33,422 39,903 34,278 33,019 33,849 32,446 30,228 29,656 31,758 30 Banks 39,250 39,468 36,735 40,247 38,790 39,883 37,108 37,805 38,259 38,848 31 Public borrowers 5,644 4,990 4,752 5,312 4,914 4,987 4,742 4,665 4,543 4,250 32 Nonbank foreigners 33,747 31,628 34,310 37,138 35,538 35,733 33,560 32,8% 31,069 30,968 33 Other assets 5,225 6,810 10,477 9,101 8,713 8,900 10,127 9,715 9,812 9,457 34 Total payable in U.S. dollars 108,626 95,028 100,574 95,972 93,214 97,188 95,326 94,492 96,767 93,790 35 Claims on United States 32,092 23,193 30,439 27,388 29,555 30,736 31,855 33,795 34,535 30,116 36 Parent bank 26,568 18,526 26,304 23,285 25,137 26,608 27,672 29,706 29,837 25,692 37 Other banks in United States 1,005 1,475 1,044 1,025 781 1,068 1,069 870 1,039 910 38 Nonbanks 4,519 3,192 3,091 3,078 3,637 3,060 3,114 3,219 3,659 3,514 39 Claims on foreigners 73,475 68,138 64,560 64,247 59,434 62,018 57,%9 55,832 57,037 58,474 40 Other branches of parent bank 26,011 26,361 28,635 26,812 24,867 25,448 23,843 22,549 22,465 24,472 41 Banks 26,139 23,251 19,188 19,656 18,065 19,555 17,477 18,025 19,165 19,066 47 Public borrowers 3,999 3,677 3,313 3,864 3,412 3,252 3,188 3,133 3,105 3,022 43 Nonbank foreigners 17,326 14,849 13,424 13,915 13,090 13,763 13,461 12,125 12,302 11,914 44 Other assets 3,059 3,697 5,575 4,337 4,225 4,434 5,502 4,865 5,195 5,200 Bahamas and Caymans 45 Total, all currencies 142,055 142,592 160,321 153,254 152,930 156,353 159,718 160,516 165,771 164,313 46 Claims on United States 74,864 78,048 85,318 85,837 88,283 90,8% 88,116 92,308 99,090 99,541 47 Parent bank 50,553 54,575 60,048 56,330 59,240 60,419 58,579 61,397 67,034 66,607 48 Other banks in United States 11,204 11,156 14,277 12,476 11,470 12,489 12,236 13,863 13,907 13,878 49 Nonbanks 13,107 12,317 10,993 17,031 17,573 17,988 17,301 17,048 18,149 19,056 50 Claims on foreigners 63,882 60,005 70,162 61,962 58,818 59,374 65,855 62,508 60,822 57,887 51 Other branches of parent bank 19,042 17,2% 21,277 19,368 17,790 18,463 24,745 22,797 20,789 20,320 57 Banks 28,192 27,476 33,751 28,647 26,700 27,019 27,650 26,120 26,866 24,545 53 Public borrowers 6,458 7,051 7,428 6,891 6,849 6,955 6,835 6,457 6,185 6,219 54 Nonbank foreigners 10,190 8,182 7,706 7,056 7,479 6,937 6,625 7,134 6,982 6,803 55 Other assets 3,309 4,539 4,841 5,455 5,829 6,083 5,747 5,700 5,859 6,885 56 Total payable in U.S. dollars 136,794 136,813 151,434 145,050 145,398 148,545 152,219 152,685 157,975 156,409 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

A58 International Statistics • January 1989 3.14—Continued 1988 LLiiaabbiilliittyy aaccccoouunntt 11998855 11998866 11998877 Mar. Apr. May June July Aug. Sept." All foreign countries 57 Total, all currencies 458,012 456,628 518,618 502,398 488,939 492,844 487,677 488,283 487,895 490,582 58 Negotiable CDs 34,607 31,629 30,929 31,854 31,585 32,175 29,485 30,159 31,203 28,953 59 To United States 156,281 152,465 161,390 157,023 155,41 V 162,027' 156,294' 159,009' 164,401 165,492 60 Parent bank 84,657 83,394 87,606 91,578 85,543' 86,901' 87,26C 84,1% 88,819 94,999 61 Other banks in United States . 16,894 15,646 20,559 14,806 16,312' 15,423' 14,68C 15,310 16,676' 14,226 62 Nonbanks 54,730 53,425 53,225 50,639 53,556 59,703 54,354 59,503' 58,906' 56,267 63 To foreigners 245,939 253,775 304,803 290,104 281,132' 277,082' 280,939' 277,776' 270,678' 274,822 64 Other branches of parent bank 89,529 95,146 124,601 109,071 105,148 104,667 110,429' 107,084 100,538' 106,284 65 Banks 76,814 77,809 87,274 88,257 85,016r 82,421' 82,380' 83,086' 80,606' 80,382 66 Official institutions 19,520 17,835 19,564 18,608 18,005' 17,699' 17,159 16,628' 17,232 16,911 67 Nonbank foreigners 60,076 62,985 73,364 74,168 72,%3' 72,295' 70,971' 70,978' 72,302' 71,245 68 Other liabilities 21,185 18,759 21,4% 23,417 20,811 21,560' 20,959 21,339 21,613 21,315 69 Total payable in U.S. dollars 353,712 336,406 361,438 344,395 337,122 341,729 341,411 341,539 346,185' 348,248 70 Negotiable CDs 31,063 28,466 26,768 26,869 26,5% 27,233 25,015 24,870 26,128 24,353 71 To United States 150,905 144,483 148,442 144,983 144,863' 149,645' 144,464' 147,551 152,745' 154,647 72 Parent bank 81,631 79,305 81,783 84,751 79,857 80,331 80,752 77,503 81,710 88,459 73 Other banks in United States 16,264 14,609 19,155 13,501 15,115' 14,073' 13,256' 14,011 15,473' 13,107 74 Nonbanks 53,010 50,569 47,504 46,731 49,891 55,241 50,456 56,037 55,562' 53,081 75 To foreigners 163,583 156,806 177,711 163,275 156,768' 155,450' 162,056' 158,901 156,358' 158,325 76 Other branches of parent bank 71,078 71,181 90,469 81,073 76,708 76,920 83,493' 81,144 75,014' 79,450 77 Banks 37,365 33,850 35,065 30,688 29,844' 28,635' 28,909' 28,495 30,041 29,341 78 Official institutions 14,359 12,371 12,409 10,489 10,539 10,028 9,571 9,354' 9,938 9,207 79 Nonbank foreigners 40,781 39,404 39,768 41,025 39,677 39,867' 40,083 39,908' 41,365' 40,327 80 Other liabilities 8,161 6,651 8,517 9,268 8,895 9,401 9,876 10,217 10,954 10,923 United Kingdom 81 Total, all currencies 148,599 140,917 158,695 155,657 152,592 156,184 151,835 151,017 149,646 147,329 82 Negotiable CDs 31,260 27,781 26,988 27,279 27,090 27,659 25,390 25,750 26,998 24,311 83 To United States 29,422 24,657 23,470 22,725 23,868 27,145 25,120 26,859 25,013 25,657 84 Parent bank 19,330 14,469 13,223 14,506 14,904 15,518 15,9% 16,844 15,100 17,115 85 Other banks in United States . 2,974 2,649 1,740 1,768 1,508 2,408 1,791 2,051 1,878 2,021 86 Nonbanks 7,118 7,539 8,507 6,451 7,456 9,219 7,333 7,964 8,035 6,521 87 To foreigners 78,525 79,498 98,689 95,049 92,219 91,995 91,691 88,489 87,504 87,212 88 Other branches of parent bank 23,389 25,036 33,078 30,211 27,383 28,743 28,%7 26,948 25,570 26,837 89 Banks 28,581 30,877 34,290 33,316 32,970 31,995 33,125 32,763 31,829 31,701 90 Official institutions 9,676 6,836 11,015 9,624 10,181 9,672 8,893 9,034 9,982 8,570 91 Nonbank foreigners 16,879 16,749 20,306 21,898 21,685 21,585 20,706 19,744 20,123 20,104 92 Other liabilities 9,392 8,981 9,548 10,604 9,415 9,385 9,634 9,919 10,131 10,149 93 Total payable in U.S. dollars 112,697 99,707 102,550 98,982 96,532 99,378 97,555 96,908 97,926' 96,970 94 Negotiable CDs 29,337 26,169 24,926 24,716 24,392 24,994 22,960 22,846 24,229 22,043 95 To United States 27,756 22,075 17,752 19,116 20,310 22,405 20,889 23,105 20,993' 22,177 % Parent bank 18,956 14,021 12,026 13,622 13,947 14,134 14,712 15,729 13,745 16,031 97 Other banks in United States 2,826 2,325 1,512 1,556 1,306 2,184 1,512 1,817 1,655 1,819 98 Nonbanks 5,974 5,729 4,214 3,938 5,057 6,087 4,665 5,559 5,593' 4,327 99 To foreigners 51,980 48,138 55,919 50,590 47,589 47,%9 48,777 46,083 47,227 47,149 100 Other branches of parent bank 18,493 17,951 22,334 21,292 18,060 18,902 20,303 18,539 17,550 18,6% 101 Banks 14,344 15,203 15,580 13,106 12,889 12,860 12,957 12,240 13,501 13,417 102 Official institutions 7,661 4,934 7,530 5,181 5,918 5,470 4,700 5,036 5,781 4,519 103 Nonbank foreigners 11,482 10,050 10,475 11,011 10,722 10,737 10,817 10,268 10,395 10,517 104 Other liabilities 3,624 3,325 3,953 4,560 4,241 4,010 4,929 4,874 5,477 5,601 Bahamas and Caymans 105 Total, all currencies 142,055 142,592 160,321 153,254 152,930 156,353 159,718 160,516 165,771 164,313 106 Negotiable CDs 610 847 885 1,069 1,038 1,0% 941 940 731 924 107 To United States 104,556 106,081 113,950 110,451 109,199 112,605 109,424 112,540 117,765 116,687 108 Parent bank 45,554 49,481 53,239 55,931 50,576 51,745 52,221 49,896 54,174 56,818 109 Other banks in United States 12,778 11,715 17,224 11,829 13,621 11,659 11,451 12,069 13,732' 11,106 110 Nonbanks 46,224 44,885 43,487 42,691 45,002 49,201 45,752 50,575 49,859' 48,763 111 To foreigners 35,053 34,400 43,815 40,038 40,953 40,369 47,361 44,993 45,062 44,478 112 Other branches of parent bank 14,075 12,631 19,185 17,260 19,420 18,909 24,755 22,288 21,221 22,872 113 Banks 10,669 8,617 10,769 9,404 9,162 9,080 9,779 10,155 9,607 8,405 114 Official institutions 1,776 2,719 1,504 1,873 1,164 1,053 1,850 1,015 1,099 1,067 115 Nonbank foreigners 8,533 10,433 12,357 11,501 11,207 11,327 10,977 11,535 13,135 12,134 116 Other liabilities 1,836 1,264 1,671 1,6% 1,740 2,283 1,992 2,043 2,213 2,224 117 Total payable in U.S. dollars 138,322 138,774 152,927 145,366 146,134 148,923 151,684 152,235 157,512 156,215 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A59 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1988 IItteemm 11998866 11998877 Mar. Apr. May June July Aug. Sept/ 1 Total1 211,834 259,517 284,324 286,529 294,729 290,842 290,775r 289,995 288,296 By type 2 Liabilities reported by banks in the United States 27,920 31,838 29,892 29,683 31,460 30,761 31,971' 32,505 31,855 3 U.S. Treasury bills and certificates 75,650 88,829 95,624 94,974 96,604 95,299 9966,,664455'' 9966,,669988 9966,,881122 U.S. Treasury bonds and notes 4 Marketable 91,368 122,432 142,854 145,929 150,991 149,333 146,971 145,561 144,104 5 Nonmarketable 1,300 300 792 795 499 502 506 509 513 6 U.S. securities other than U.S. Treasury securities 15,596 16,123 15,162 15,148 15,175 14,947 14,682 14,722 15,012 By area 7 Western Europe1 88,629 124,620 129,411 129,739 131,406 126,772 125,095 123,120 120,853 8 Canada 2,004 4,961 7,954 8,314 9,372 10,773 10,725 9,981 10,054 9 Latin America and Caribbean 8,417 8,328 8,660 8,520 9,145 9,407 9,818 11,336 10,136 10 Asia 105,868 116,098 131,458 132,050 135,120 134,285 135,657 136,205 137,561 11 Africa 1,503 1,402 1,512 1,417 1,418 1,266 1,179 1,196 1,130 12 Other countries 5,412 4,147 4,839 5,993 7,773 7,837 7,793 7,646 8,049 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 54,046' 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 customers 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

A60 International Statistics • January 1989 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 Mar. Apr. May June July' Aug. Sept." 1 All foreigners 435,726 540,996 618,978 605,615 611,031 629,139 637,3% 654,760 658,235 656,633 2 Banks' own liabilities 341,070 406,485 470,056 443,680 449,324 465,665 476,117 490,660 494,084 489,192 3 Demand deposits 21,107 23,789 22,383 21,901 20,330 22,181 22,990 21,983 20,315 21,517 4 Time deposits 117,278 130,891 148,444 137,729 134,320 138,255 141,553 142,670 147,866 149,912 5 Other. 29,305 42,705 51,607 47,040 46,018 48,489 47,658 51,244 50,409 53,311 6 Own foreign offices 173,381 209,100 247,621 237,011 248,655 256,741 263,916 274,762 275,494 264,452 7 Banks' custody liabilities5 94,656 134,511 148,923 161,935 161,707 163,474 161,279 164,101 164,151 167,441 8 U.S. Treasury bills and certificates6 69,133 90,398 101,743 109,233 107,881 108,803 108,614 109,555 109,106 109,686 9 Other negotiable and readily transferable instruments 17,964 15,417 16,791 16,121 16,017 16,595 16,626 16,165 15,892 16,537 10 Other 7,558 28,696 30,388 36,581 37,810 38,075 36,039 38,381 39,153 41,218 11 Nonmonetary international and regional organizations 5,821 5,807 4,464 6,033 4,575 6,889 7,879 7,036 4,749 77,,776644 12 Banks' own liabilities 2,621 3,958 2,702 4,031 2,412 4,898 5,142 4,857 2,925 5,104 13 Demand deposits 85 199 124 134 67 84 84 92 85 208 14 Time deposits 2,067 2,065 1,538 2,061 335 1,981 1,873 1,857 1,430 1,888 15 Other. 469 1,693 1,040 1,836 2,010 2,833 3,185 2,908 1,410 3,008 16 Banks' custody liabilities5 3,200 1,849 1,761 2,002 2,163 1,991 2,737 2,179 1,824 2,660 17 U.S. Treasury bills and certificates6 1,736 259 265 635 587 132 745 286 43 755 18 Other negotiable and readily transferable instruments 1,464 1,590 1,497 1,351 1,564 1,852 1,989 1,861 1,769 1,899 19 Other 0 0 0 16 11 7 3 32 12 5 20 Official institutions9 79,985 103,569 120,667 125,516 124,657 128,065 126,060 128,616 129,203 128,667 21 Banks' own liabilities 20,835 25,427 28,703 26,915 26,623 28,451 27,882 28,386 28,981 28,616 22 Demand deposits 2,077 2,267 1,757 2,021 1,498 1,882 1,834 1,6% 1,405 1,750 23 Time deposits 10,949 10,497 12,843 11,789 11,753 12,860 11,864 11,464 12,667 11,579 24 Other. 7,809 12,663 14,103 13,105 13,372 13,709 14,184 15,226 14,909 15,287 25 Banks' custody liabilities5 59,150 78,142 91,965 98,602 98,033 99,613 98,178 100,230 100,222 100,051 26 U.S. Treasury bills and certificates 53,252 75,650 88,829 95,624 94,974 %,604 95,299 %,645 %,698 96,812 27 Other negotiable and readily transferable instruments 5,824 2,347 2,990 2,750 2,939 2,775 2,672 3,368 3,240 2,%1 28 Other 75 145 146 228 120 234 207 217 284 279 29 Banks10 275,589 351,745 414,181 394,040 401,743 413,460 423,3% 436,310 439,843 435,674 30 Banks' own liabilities 252,723 310,166 371,651 346,742 353,971 365,512 375,093 387,456 390,603 383,409 31 Unaffiliated foreign banks 79,341 101,066 124,030 109,732 105,315 108,771 111,177 112,694 115,109 118,957 32 Demand deposits 10,271 10,303 10,898 10,012 9,153 10,260 10,898 10,217 9,258 9,376 33 Time deposits 49,510 64,232 79,787 69,964 68,098 69,616 72,612 73,186 75,737 78,692 34 Other. 19,561 26,531 33,345 29,755 28,065 28,895 27,668 29,291 30,114 30,889 35 Own foreign offices 173,381 209,100 247,621 237,011 248,655 256,741 263,916 274,762 275,494 264,452 36 Banks' custody liabilities5 22,866 41,579 42,530 47,298 4477,,777722 47,948 48,303 48,854 49,240 52,265 37 U.S. Treasury bills and certificates6 9,832 9,984 9,134 9,597 88,,888899 8,872 9,212 9,394 9,299 8,888 38 Other negotiable and readily transferable instruments 6,040 5,165 5,392 4,627 4,637 4,341 4,725 4,625 4,300 5,484 39 Other 6,994 26,431 28,004 33,074 34,245 34,735 34,365 34,835 35,642 37,893 40 Other foreigners 74,331 79,875 79,666 80,026 80,056 80,726 80,061 82,800 84,440 84,528 41 Banks' own liabilities 64,892 66,934 67,000 65,993 66,318 66,804 67,999 69,%1 71,575 72,063 42 Demand deposits 8,673 11,019 9,604 9,734 9,612 9,955 10,173 9,979 9,566 10,183 43 Time deposits 54,752 54,097 54,277 53,915 54,134 53,798 55,204 56,163 58,033 57,752 44 Other. 1,467 1,818 3,119 2,344 2,571 3,051 2,622 3,819 3,976 4,127 45 Banks' custody liabilities5 9,439 12,941 12,666 14,034 13,739 13,922 12,062 12,839 12,865 12,466 46 U.S. Treasury bills and certificates6 4,314 4,506 3,515 3,378 3,430 3,1% 3,358 3,231 3,066 3,231 47 Other negotiable and readily transferable instruments 4,636 6,315 6,914 7,393 6,876 7,628 7,241 6,311 6,583 6,193 48 Other 489 2,120 2,238 3,263 3,433 3,099 1,464 3,297 3,215 3,041 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 9,845 7,4% 7,314 7,325 7,480 8,261 7,711 6,975 7,064 6,393 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 A61 3.17—Continued 1988 AArreeaa aanndd ccoouunnttrryy 11998855 11998866 11998877 Mar. Apr. May June July' Aug. Sept/ 1 Total 435,726 540,9% 618,978 605,615 611,031 629,139 637,3% 654,760 658,235 656,633 2 Foreign countries 429,905 535,189 614,514 599,582 606,456 622,250 629,517 647,725 653,486 648,870 3 Europe 164,114 180,556 234,641 213,051 218,515 227,867 227,626 231,170 232,753 224,819 4 Austria 693 1,181 920 958 1,162 1,090 941 1,412 1,246 1,109 Belgium-Luxembourg 5,243 6,729 9,347 8,804 9,629 9,893 10,363 9,494 10,050 9,983 6 Denmark 513 482 760 930 1,034 1,164 1,364 1,474 2,078 1,403 7 Finland 4% 580 377 405 504 478 426 549 417 447 8 France 15,541 22,862 29,835 28,424 27,015 28,193 26,975 26,002 24,209 24,265 9 Germany 4,835 5,762 7,022 6,609 6,878 6,487 5,105 5,211 6,226 5,055 10 Greece 666 700 689 656 656 675 653 620 694 633 11 Italy 9,667 10,875 12,073 10,075 10,040 9,285 10,695 9,361 9,766 8,546 1? Netherlands 4,212 5,600 5,014 5,399 5,154 5,757 5,351 5,560 5,648 6,173 13 Norway 948 735 1,362 917 1,101 1,240 1,078 1,330 900 1,057 14 Portugal 652 699 801 874 917 910 897 859 848 858 15 Spain 2,114 22,,440077 2,621 2,608 2,415 2,839 4,168 5,011 5,569 6,248 16 Sweden 1,422 888844 1,379 1,836 1,692 2,280 1,522 1,926 2,011 2,249 17 Switzerland 29,020 30,534 33,766 31,739 30,523 31,293 31,226 30,451 29,569 32,172 18 Turkey 429 454 703 616 518 628 570 537 709 706 19 United Kingdom 76,728 85,334 116,852 101,621 109,547 115,439 115,521 121,895 122,619 112,975 20 Yugoslavia 673 630 710 550 566 586 690 614 629 579 2.1 Other Western Europe1 9,635 3,326 9,798 9,341 8,473 9,038 9,230 8,135 8,893 9,312 ?? U.S.S.R 105 80 32 66 44 136 239 81 100 465 23 Other Eastern Europe2 523 702 582 623 648 456 611 648 572 584 24 Canada 17,427 26,345 30,095 27,350 27,011 27,890 30,051 29,944 28,128 28,234 Latin America and Caribbean 167,856 210,318 220,399 220,707 225,708 229,829 232,760 242,674 246,521 246,635 76 Argentina 6,032 4,757 5,006 5,101 5,307 5,219 5,876 5,975 6,775 7,106 71 Bahamas 57,657 73,619 74,676 68,966 69,975 73,990 74,034 75,910 78,810 78,437 78 Bermuda 2,765 2,922 2,344 2,214 2,402 2,927 2,077 2,413 2,389 2,390 ?9 Brazil 5,373 4,325 4,005 4,074 3,992 4,122 4,205 4,489 4,609 4,500 30 British West Indies 42,674 72,263 81,612 88,214 92,534 91,601 94,311 101,378 99,687 101,067 31 Chile 2,049 2,054 2,210 2,314 2,251 2,184 2,378 2,323 2,478 2,467 3? Colombia 3,104 4,285 4,204 3,833 3,843 4,395 4,502 4,441 4,403 4,171 33 Cuba 11 7 12 8 13 9 10 9 8 9 34 Ecuador 1,239 1,236 1,082 1,169 1,174 1,206 1,212 1,216 1,224 1,244 35 Guatemala 1,071 1,123 1,082 1,182 1,209 1,191 1,209 1,183 1,182 1,177 36 Jamaica 122 136 160 208 209 152 156 154 149 166 37 Mexico 14,060 13,745 14,480 15,784 15,347 15,866 15,801 16,334 17,260 15,818 38 Netherlands Antilles 4,875 4,970 4,975 5,207 5,345 5,348 5,338 4,798 5,011 5,253 39 Panama 7,514 6,886 7,414 4,306 4,059 4,005 4,171 4,251 4,262 4,128 40 Peru 1,167 1,163 1,275 1,364 1,424 1,423 1,438 1,514 1,540 1,584 41 Uruguay 1,552 1,537 1,582 1,763 1,745 1,717 1,882 1,828 1,889 1,882 4? Venezuela 11,922 10,171 9,048 9,411 9,564 9,255 8,950 9,116 9,330 9,750 43 Other 4,668 5,119 5,234 5,591 5,313 5,219 5,209 5,343 5,514 5,485 44 72,280 108,831 121,364 129,237 125,653 125,750 128,100 134,003 136,293 139,021 China 45 Mainland 1,607 1,476 1,162 1,562 1,814 1,921 1,725 1,564 1,757 11,,559999 46 Taiwan 7,786 18,902 21,503 24,005 23,982 23,874 23,072 24,023 23,422 22,275 47 Hong Kong 8,067 9,393 10,180 10,015 9,635 10,214 9,255 9,951 10,417 10,900 48 India 712 674 582 659 675 619 942 858 844 1,014 49 Indonesia 1,466 1,547 1,404 1,547 1,063 1,036 1,075 1,036 1,255 1,125 50 Israel 1,601 1,892 1,292 1,400 1,292 1,190 1,334 1,244 1,194 1,130 51 Japan 23,077 47,410 54,398 60,349 58,576 58,151 60,916 63,529 65,001 68,413 5? Korea 1,665 1,141 1,637 1,546 1,574 1,476 1,572 1,459 1,720 2,093 51 Philippines 1,140 1,866 1,085 1,095 1,015 975 954 1,085 1,001 975 5 5 5 4 T M h i a d i d la le n - d E ast oil-exporting countries i 14 1 , , 5 35 2 8 3 12 1 , , 3 1 5 1 2 9 1 1 3 , , 3 9 4 8 5 8 12 1 , , 7 1 2 8 7 9 12 1 , ,1 6 8 3 1 9 12 1, , 4 4 4 1 8 3 12 1 , ,0 0 9 8 9 9 14 1 , , 2 65 9 0 8 12 1, , 4 7 2 8 2 8 1 2 4 , , 2 0 8 % 7 56 Other 9,276 11,058 12,788 13,142 12,207 12,434 14,066 13,305 15,472 13,115 57 4,883 4,021 3,945 4,034 3,878 4,055 4,023 3,837 3,846 3,667 58 Egypt 1,363 706 1,151 1,099 1,218 1,196 1,187 1,039 %9 815 59 Morocco 163 92 194 75 68 65 73 80 70 111 60 South Africa 388 270 202 387 195 267 245 200 204 247 61 Zaire 163 74 67 81 82 63 60 63 67 71 62 Oil-exporting countries 1,494 1,519 1,014 1,062 1,008 1,090 1,111 1,052 1,039 1,017 63 Other 1,312 1,360 1,316 1,330 1,307 1,373 1,348 1,403 1,498 1,406 64 Other countries 3,347 5,118 4,070 5,202 5,689 6,859 6,957 6,098 5,945 6,493 65 Australia 2,779 4,1% 3,327 4,154 4,885 5,943 6,017 5,329 5,170 5,649 66 All other 568 922 744 1,048 804 916 939 769 775 844 67 Nonmonetary international and regional organizations 5,821 5,807 4,464 6,033 4,575 6,889 7,879 7,036 44,,774499 77,,776644 68 International 4,806 4,620 2,830 4,330 2,691 4,955 5,925 5,105 2,979 5,721 69 Latin American regional 894 1,033 1,272 1,305 1,528 1,727 1,769 1,651 1,614 1,762 70 Other regional 121 154 362 397 356 207 185 279 156 281 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

A62 International Statistics • January 1989 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 Mar. Apr. May June July Aug. Sept." 1 401,608 444,745 459,706 443,416 432,679 450,678 459,411 471,697r 468,541' 481,679 2 Foreign countries 400,577 441,724 456,302 441,211 431,317 449,532 456,866 468,541r 468,089 475,009 3 Europe 106,413 107,823 102,375 94,565 93,507 100,484 100,925 9999,,770055 99,208 110022,,554433 4 Austria 598 728 793 846 893 865 806 888888 743 880088 5 Belgium-Luxembourg 5,772 7,498 9,397 8,252 8,792 8,724 7,863 8,530 8,398 8,867 6 Denmark 706 688 717 874 612 630 640 743 609 582 7 Finland 823 987 1,010 729 993 1,103 954 1,325 1,231 1,290 8 France 9,124 11,356 13,553 12,227 10,885 12,147 12,184 11,861 11,963 12,048 9 Germany 1,267 1,816 2,039 1,852 1,610 1,719 2,840 2,153 1,982 1,712 10 Greece 991 648 463 701 513 558 590 563 524 521 11 Italy 8,848 9,043 7,460 6,444 6,201 6,606 7,072 6,607 6,626 6,113 12 Netherlands 1,258 3,2% 2,624 2,755 2,865 2,766 2,656 3,017 2,938 3,202 13 Norway 706 672 934 627 650 886 589 484 534 510 14 Portugal 1,058 739 477 423 439 400 358 333 321 333 15 Spain 1,908 1,492 1,858 1,761 1,766 1,911 1,867 1,978 2,016 1,969 lb Sweden 2,219 1,964 2,269 2,227 2,347 2,480 2,087 1,958 2,256 1,968 17 Switzerland 3,171 3,352 2,719 2,243 2,452 3,093 3,274 2,486 2,559 2,555 18 Turkey 1,200 1,543 1,680 1,594 1,733 1,543 1,495 1,432 1,397 1,396 19 United Kingdom 62,566 58,335 50,819 47,477 47,319 51,679 52,084 51,885 51,728 54,722 20 Yugoslavia 1,964 1,835 1,700 1,658 1,618 1,586 1,624 1,559 1,537 1,506 21 Other Western Europe2 998 539 619 747 573 598 647 671 520 864 22 U.S.S.R 130 345 389 328 377 339 506 431 466 515 23 Other Eastern Europe 1,107 948 852 802 866 851 787 800 859 1,062 24 Canada 16,482 21,006 25,288 21,121 22,101 23,799 24,639 23,939 24,056 23,952 25 Latin America and Caribbean 202,674 208,825 214,641 210,445 200,220 203,941 203,208 206,547r 208,407 212,669 2b Argentina 11,462 12,091 11,9% 12,230 12,288 12,297 12,365 12,359r 12,256 12,233 27 Bahamas 58,258 59,342 64,586 60,636 54,625 59,251 56,722 62,333r 65,573 63,999 28 Bermuda 499 418 471 449 669 369 818 460r 423 688 29 Brazil 25,283 25,716 25,897 25,9% 26,042 26,119 26,230 26,041' 25,927 25,653 30 British West Indies 38,881 46,284 49,8% 52,531 48,212 48,873 51,140 49,745 48,951 55,147 31 Chile 6,603 6,558 6,308 6,099 6,132 6,018 5,881 5,778 5,684 5,674 32 Colombia 3,249 2,821 2,740 2,652 22,,772211 3,082 3,095 3,127r 3,029 3,003 33 Cuba 0 0 1 0 11 0 0 0 0 0 34 Ecuador 2,390 2,439 2,286 2,239 2,883 2,197 2,142 2,146 2,162 2,185 35 Guatemala4 194 140 144 149 141 149 144 157 148 150 3b Jamaica4 224 198 188 201 212 177 187 214 184 185 37 Mexico 31,799 30,698 29,532 27,%7 27,2% 26,679 26,177 26,017r 25,883 26,016 38 Netherlands Antilles 1,340 1,041 980 1,159 1,304 1,434 1,238 1,055 1,269 1,081 39 Panama 6,645 5,436 4,744 3,0% 2,749 2,566 2,492 2,400 2,369 2,234 40 Peru 1,947 1,661 1,329 1,277 1,283 1,297 1,149 1,136 1,190 1,146 41 Uruguay 960 940 %8 929 913 880 885 878 920 891 42 Venezuela 10,871 11,108 10,838 11,040 10,944 10,833 10,912 ll,016r 10,788 10,747 43 Other Latin America and Caribbean 2,067 1,936 1,738 1,7% 1,805 1,719 1,631 l,686r 1,651 1,635 44 66,212 96,126 106,025 107,699 110088,,339955 111133,,779977 112200,,112200 113300,,444433rr 112288,,661166 112288,,221166 China 45 Mainland 639 787 %8 1,0% 1,135 841 1,065 1,033r 1,033r 1,180 4b Taiwan 1,535 2,681 4,577 3,554 3,812 3,805 3,957 3,562 3,241 2,798 47 Hong Kong 6,797 8,307 8,216 8,502 6,343 8,356 9,632 8,342r 7,451 8,471 48 India 450 321 510 565 542 507 499 508r 548 539 49 Indonesia 698 723 580 645 643 631 695 688 703 691 50 Israel 1,991 1,634 1,363 1,238 1,284 1,259 1,213 1,206 1,174 1,180 51 Japan 31,249 59,674 68,628 72,256 75,166 78,638 82,361 93,093r 92,806 90,600 52 Korea 9,226 7,182 5,127 5,084 4,781 4,886 4,987 4,882r 4,854 5,129 53 Philippines 2,224 2,217 2,071 2,074 1,959 2,012 2,055 2,029 2,030 2,009 54 Thailand , 845 578 4% 541 516 596 641 668 683 759 55 Middle East oil-exporting countries 4,298 4,122 4,858 3,538 4,077 3,541 4,573 6,400r 6,216 6,400 5b Other Asia 6,260 7,901 8,633 8,606 8,136 8,725 8,441 8,03 V 7,891 8,462 57 Africa 5,407 4,650 4,742 4,881 4,879 5,092 5,423 5,493 5,462 5,462 58 Egypt 721 567 521 483 483 503 605 539 530 534 59 Morocco 575 598 542 487 495 483 484 481 475 478 bO South Africa 1,942 1,550 1,507 1,458 1,439 1,4% 1,693 1,726 1,719 1,702 bl Zaire 20 28 15 46 47 42 41 38 36 16 62 Oil-exporting countries6 630 694 1,003 1,141 1,138 1,244 1,275 1,340 1,353 1,389 61 Other 1,520 1,213 1,153 1,267 1,276 1,324 1,325 1,369 1,348 1,343 64 Other countries 3,390 3,294 3,230 2,499 2,216 2,419 2,551 2,414 2,340 2,167 65 Australia 2,413 1,949 2,191 1,481 1,360 1,413 1,678 1,554 1,499 1,392 66 All other 978 1,345 1,039 1,019 856 1,006 873 860 842 775 67 Nonmonetary international and regional organizations 1,030 33,,002211 3,404 22,,220066 1,362 1,147 2,545 3,156r 3,061 6,670 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 A63 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 Mar. Apr. May June July' Aug. Sept/ 1 Total 444444433333330000000,,,,,,,444444488888889999999 444444477777778888888,,,,,,,666666655555550000000 444444499999997777777,,,,,,,444444466666664444444 444444488888880000000,,,,,,,444444422222226666666 444444499999994444444,,,,,,,888888844444443333333rrrrrrr 448811,,667799 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444400000001111111,,,,,,,666666600000008888888 444444444444444444444,,,,,,,777777744444445555555 444444455555559999999,,,,,,,777777700000006666666 444444444444443333333,,,,,,,444444411111116666666 432,679 450,678 444444455555559999999,,,,,,,444444411111111111111 471,697 471,150 448811,,667799 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555500000007777777 66666664444444,,,,,,,000000099999995555555 66666664444444,,,,,,,777777700000003333333 66666661111111,,,,,,,999999900000006666666 61,173 61,276 66666662222222,,,,,,,777777711111111111111 63,212 62,347 6644,,660066 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 111111177777774444444,,,,,,,222222266666661111111 222222211111111111111,,,,,,,555555533333333333333 222222222222224444444,,,,,,,555555566666667777777 222222222222222222222,,,,,,,222222266666669999999 211,576 225,498 222222233333330000000,,,,,,,555555522222227777777 240,342 238,469 224499,,001166 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111111111116666666,,,,,,,666666655555554444444 111111122222222222222,,,,,,,999999944444446666666 111111122222227777777,,,,,,,555555577777773333333 111111111111117777777,,,,,,,999999900000000000000 117,539 122,447 111111122222223333333,,,,,,,444444411111118888888 127,181 128,340 112244,,770099 66 DDeeppoossiittss 44444448888888,,,,,,,333333377777772222222 55555557777777,,,,,,,444444488888884444444 66666660000000,,,,,,,444444499999990000000 55555555555555,,,,,,,333333366666664444444 55,984 57,502 55555558888888,,,,,,,888888800000006666666 59,769 60,367 6611,,331144 77 OOtthheerr 66666668888888,,,,,,,222222288888882222222 66666665555555,,,,,,,444444466666662222222 66666667777777,,,,,,,000000088888883333333 66666662222222,,,,,,,555555533333336666666 61,555 64,945 66666664444444,,,,,,,666666611111112222222 67,413 67,973 6633,,339955 88 AAllll ootthheerr ffoorreeiiggnneerrss 55555550000000,,,,,,,111111188888885555555 44444446666666,,,,,,,111111177777771111111 44444442222222,,,,,,,888888866666663333333 44444441111111,,,,,,,333333344444442222222 42,391 41,458 44444442222222,,,,,,,777777755555555555555 40,%2 41,993 4433,,334499 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 22222228888888,,,,,,,888888888888881111111 33333333333333,,,,,,,999999900000005555555 33333337777777,,,,,,,777777755555558888888 33333337777777,,,,,,,000000000000009999999 33333335555555,,,,,,,444444433333332222222''''''' 3333333,,,,,,,333333333333335555555 4444444,,,,,,,444444411111113333333 3333333,,,,,,,666666699999992222222 5555555,,,,,,,000000011111111111111 4444444,,,,,,,888888844444443333333''''''' 11 Negotiable and readily transferable 11111119999999,,,,,,,333333333333332222222 22222224444444,,,,,,,000000044444444444444 22222226666666,,,,,,,6666666%%%%%%% 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,,,,,,,666666611111118888888''''''' Dollar deposits in banks abroad, reported by nonbanking business n.a. enterprises in the United States 38,102 43,974 40,059 37,807 43,147 44,425 42,243' 46,558 50,022 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 banks, as well as some brokers and dealers. States that represent claims on foreigners held by reporting banks for the account 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 1987 1988 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998844 11998855 11998866 Sept. Dec. Mar. June' 1 Total 243,952 227,903 232,295 237,320 235,037 218,843 227,521 By borrower 2 Maturity of 1 year or less2 167,858 160,824 160,555 166,930 163,895 151,998 162,874 3 Foreign public borrowers 23,912 26,302 24,842 27,359 26,001 24,253 25,608 4 All other foreigners 143,947 134,522 135,714 139,571 137,894 127,745 137,267 5 Maturity over 1 year2 76,094 67,078 71,740 70,390 71,142 66,845 64,647 6 Foreign public borrowers 38,695 34,512 39,103 39,411 38,652 35,836 35,605 7 All other foreigners 37,399 32,567 32,637 30,980 32,491 31,009 29,042 By area Maturity of 1 year or less2 8 Europe 58,498 56,585 61,784 62,878 59,068 51,464 55,169 9 Canada 6,028 6,401 5,895 5,893 5,684 4,937 6,425 10 Latin America and Caribbean 62,791 63,328 56,271 58,390 56,494 55,433 56,298 11 Asia 33,504 27,966 29,457 31,535 35,938 35,505 38, %5 12 Africa 4,442 3,753 2,882 2,871 2,824 2,5% 2,914 13 Allother3 2,593 2,791 4,267 5,362 3,887 2,062 3,103 Maturity of over 1 year2 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 49,775 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

A64 International Statistics • January 1989 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 198 8 Area or country 1984 1985 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 405.7 385.4 381.5 381.6 385.1 394.8 384.6 387.7 381.3 372.3 353.1 2 G-10 countries and Switzerland 148.1 146.0 156.4 154.8 156.6 162.7 158.1 155.2 159.9 156.5 150.5 3 Belgium-Luxembourg 8.7 9.2 8.9 8.3 8.3 9.1 8.3 8.2 10.1 9.3 9.2 4 France 14.1 12.1 15.0 14.5 13.7 13.3 12.5 13.7 13.8 11.5 10.8 5 Germany 9.0 10.5 11.5 12.4 11.6 12.7 11.2 10.5 12.6 11.8 10.6 6 Italy 10.1 9.6 9.0 7.8 9.0 8.6 7.5 6.6 7.3 7.4 6.1 7 Netherlands 3.9 3.7 3.4 3.9 4.6 4.4 7.3 4.8 4.1 3.3 3.3 8 Sweden 3.2 2.7 2.9 2.7 2.4 3.0 2.4 2.6 2.1 2.1 1.9 9 Switzerland 3.9 4.4 5.6 4.7 5.8 5.8 5.7 5.4 5.6 5.1 5.6 10 United Kingdom 60.3 63.0 67.9 68.8 71.0 73.7 72.1 72.1 69.1 71.3 69.8 11 Canada 7.9 6.8 6.6 5.9 5.3 5.3 4.7 4.7 5.5 5.0 5.4 12 Japan 27.1 23.9 25.8 25.8 24.9 26.9 26.4 26.6 29.8 29.7 28.0 13 Other developed countries 33.6 29.9 30.2 28.9 25.7 25.7 25.2 25.9 26.3 26.2 23.7 14 Austria 1.6 1.5 1.7 1.7 1.7 1.9 1.8 1.9 1.9 1.6 1.6 15 Denmark 2.2 2.3 2.3 2.2 1.7 1.7 1.5 1.6 1.7 1.4 1.0 16 Finland 1.9 1.6 1.6 1.6 1.4 1.4 1.4 1.4 1.3 1.0 1.2 17 Greece 2.9 2.6 2.6 2.3 2.3 2.1 2.0 1.9 2.0 2.3 2.2 18 Norway 3.0 2.9 3.0 2.7 2.4 2.2 2.1 2.0 2.3 2.0 2.0 19 Portugal 1.4 1.2 1.0 1.0 .8 .8 .8 .8 .5 .4 .4 20 Spain 6.5 5.8 6.4 6.7 5.8 6.3 6.1 7.4 8.0 9.0 7.2 21 Turkey 1.9 1.8 2.2 1.9 1.8 1.7 1.7 1.5 1.6 1.6 1.5 22 Other Western Europe 1.7 2.0 2.0 1.6 1.4 1.4 1.5 1.6 1.6 1.9 1.6 23 South Africa 4.5 3.2 3.0 3.0 3.0 3.0 3.0 2.9 2.9 2.8 2.8 24 Australia 6.0 5.0 4.1 4.2 3.5 3.2 3.1 2.9 2.5 2.1 2.2 25 OPEC countries3 24.9 21.3 20.3 19.7 19.3 20.0 18.8 19.0 17.1 17.1 16.4 26 Ecuador 2.2 2.1 2.1 2.2 2.2 2.1 2.1 2.1 1.9 1.9 1.8 27 Venezuela 9.3 8.9 8.8 8.7 8.6 8.5 8.4 8.3 8.1 8.1 8.0 28 Indonesia 3.3 3.0 3.0 2.8 2.5 2.4 2.2 2.0 1.9 1.9 1.8 29 Middle East countries 7.9 5.3 4.7 4.4 4.3 5.4 4.4 5.0 3.6 3.6 3.1 30 African countries 2.3 2.0 1.7 1.7 1.7 1.6 1.7 1.7 1.7 1.7 1.7 31 Non-OPEC developing countries 111.8 104.2 100.9 99.1 99.1 100.3 100.5 97.7 97.7 94.0 91.3r Latin America 32 Argentina 8.7 8.8 9.1 9.2 9.5 9.5 9.5 9.3 9.4 9.5 9.4 33 Brazil 26.3 25.4 25.3 25.2 25.2 26.1 25.1 25.1 24.7 23.9 23.7 34 Chile 7.0 6.9 7.1 7.1 7.1 7.2 7.2 7.0 6.9 6.6 6.4 35 Colombia 2.9 2.6 2.1 1.9 2.1 2.0 1.9 1.9 2.0 1.9 2.1 36 Mexico 25.7 23.9 23.8 23.9 23.8 23.9 25.3 24.8 23.7 22.5 21.1 37 Peru 2.2 1.8 1.6 1.5 1.4 1.4 1.3 1.2 1.1 1.1 .9 38 Other Latin America 3.9 3.4 3.3 3.3 3.1 3.0 2.9 2.8 2.7 2.8 2.6 Asia China 39 Mainland .7 .5 .6 .6 .4 .9 .6 .3 .3 .4 .3 40 Taiwan 5.1 4.5 3.7 4.3 4.9 5.5 6.6 8.2 6.1 4.9r 41 India .9 1.2 1.3 1.3 1.2 1.7 1.7 1.9 2.1 2.3 42 Israel 1.8 1.6 1.6 1.4 1.5 1.4 1.3 13 1.0 1.0 1.0 43 Korea (South) 10.6 9.2 8.4 7.1 6.6 6.2 5.6 4.9 5.6 5.9 44 Malaysia 2.7 2.4 1.9 2.1 2.1 1.9 1.7 1.5 1.5 1.5 45 Philippines 6.0 5.7 5.7 5.4 5.4 5.4 5.4 5.1 5.1 4.9 46 Thailand 1.8 1.4 1.1 1.0 .9 .9 .8 .7 1.0 1.1 47 Other Asia 1.1 1.0 .8 .6 .7 .6 .7 .7 .7 .8 Africa 48 Egypt 1.2 1.0 .9 .7 .7 .6 .6 .6 .5 .5 .6 5 4 0 9 M Za o ir r e o cco .8 J .9] .9 J .9 .9 J .9 .9 J .8 . . 0 9 .9 . . 9 1 51 Other Africa4 2.\ L9 \.l L6 L6 L4 13 13 1.3 L0 1.2 52 Eastern Europe 4.4 4.1 4.0 3.3 3.2 3.0 3.3 3.3 3.0 2.9 3.1 53 U.S.S.R .1 .1 .3 .1 .1 .1 .3 .5 .4 .3 .4 54 Yugoslavia 2.3 2.2 2.0 1.9 1.7 1.6 1.7 1.7 1.6 1.7 1.7 55 Other 2.0 1.8 1.7 1.4 1.4 1.3 1.3 1.2 1.0 .9 1.0 56 Offshore banking centers 65.6 62.9 53.0 58.3 61.3 62.8 60.5 64.3 54.1 54.1 45.9 57 Bahamas 21.5 21.2 16.9 19.6 22.0 23.8 19.9 25.5 17.1 18.3 12.1 58 Bermuda .9 .7 .4 .4 .7 .8 .6 .6 .6 .8 1.0 59 Cayman Islands and other British West Indies 11.8 11.6 10.5 11.3 12.4 12.1 13.9 12.8 13.1 11.7 10.0 60 Netherlands Antilles 3.4 2.2 2.2 1.8 1.8 1.7 1.3 1.2 1.2 1.3 1.2 6 6 1 2 P L a e n b a a m no a n 5 6.7| 6.0 J 4.2 J 5.1| 4.0 J 4.2 J 3.9 J 3.7 3.7 3.2 3.0 63 Hong Kong 11.4 1L4 9^4 103 1111 1L4 12.5 123 1L2 113 1L7 64 Singapore 9.8 9.8 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 .0 66 Miscellaneous and unallocated7 17.3 16.9 16.8 17.3 19.8 20.1 18.1 22.3 23.2 21.5 22.2r 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 A65 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1987 1988 Type, and area or country 11998844 11998855 11998866 June Sept. Dec. Mar. June 29,357 27,825 25,779 29,019 28,669 27,590 28,840 29,425 26,389 24,296 21,980 24,565 24,141 22,253 23,246 24,018 2,968 3,529 3,800 4,454 4,528 5,337 5,594 5,406 14,509 13,600 12,312 14,096 13,034 11,574 13,066 13,156 12,553 11,257 9,827 11,197 10,080 8,097 9,384 9,659 1,955 2,343 2,485 2,899 2,954 3,477 3,681 3,497 14,849 14,225 13,467 14,923 15,635 16,016 15,774 16,269 7,005 6,685 6,462 7,286 7,548 7,425 6,601 6,853 7,843 7,540 7,004 7,637 8,086 8,591 9,173 9,417 13,836 13,039 12,153 13,368 14,061 14,156 13,862 14,359 1,013 1,186 1,314 1,555 1,574 1,859 1,912 1,910 6,728 7,700 8,079 9,713 9,298 7,794 8,939 8,839 471 349 270 257 230 202 241 267 995 857 661 822 615 364 365 330 489 376 368 402 505 583 586 623 590 861 704 669 641 1,014 1,013 1,008 569 610 646 655 685 493 652 705 3,297 4,305 5,140 6,646 6,357 4,946 5,900 5,733 863 839 399 441 397 400 467 458 5,086 3,184 1,961 1,744 961 847 1,195 1,192 1,926 1,123 614 398 280 278 249 211 13 4 4 0 0 0 0 0 35 29 32 22 22 25 23 19 2,103 1,843 1,163 1,223 580 476 824 896 367 15 22 29 17 13 15 26 137 3 0 2 3 0 2 0 1,777 1,815 1,805 2,131 2,300 2,429 2,379 2,591 1,209 1,198 00 OO 1,751 1,830 2,042 1,987 2,063 155 82 00 OO 1 Total 2 Payable in dollars 3 Payable in foreign currencies By type 4 Financial liabilities 5 Payable in dollars 6 Payable in foreign currencies 7 Commercial liabilities 8 Trade payables 9 Advance receipts and other liabilities .. 10 Payable in dollars 11 Payable in foreign currencies By area or country Financial liabilities 12 Europe 13 Belgium-Luxembourg 14 France 15 Germany 16 Netherlands 17 Switzerland 18 United Kingdom 19 Canada 20 Latin America and Caribbean 21 Bahamas 22 Bermuda 23 Brazil 24 British West Indies 25 Mexico 26 Venezuela 27 Asia 28 Japan 29 Middle East oil-exporting countries2 . 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 32 All other4 41 50 67 66 76 100 80 73 Commercial liabilities 4,001 4,074 4,447 4,966 4,951 5,626 5,757 5,812 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 1,000 42 Bahamas 7 12 32 13 22 19 17 64 43 Bermuda 114 77 156 266 252 168 325 272 44 Brazil 124 58 61 88 40 46 59 54 45 British West Indies 32 44 49 67 47 19 14 28 46 Mexico 586 430 217 214 231 189 164 233 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 6,270 49 Japan 1,256 1,799 2,052 2,481 2,422 2,580 2,509 2,659 50 Middle East oil-exporting countries2'5 2,372 2,829 1,679 1,867 2,104 1,964 1,069 1,320 51 Africa 588 587 619 524 572 574 576 624 52 Oil-exporting countries3 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

A66 International Statistics • January 1989 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 36,248 33,578 33,209 32,285 31,389 38,470 2 Payable in dollars 27,304 26,574 33,850 30,597 30,648 29,192 29,410 36,542 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 26,914 5 Deposits 14,621 15,526 19,916 16,014 17,286 15,535 13,205 19,872 6 Payable in dollars 14,202 14,911 19,331 14,775 16,377 14,089 12,650 19,181 7 Payable in foreign currencies 420 615 585 1,238 908 1,447 555 691 8 Other financial claims 4,633 3,364 6,357 7,673 5,572 6,212 7,400 7,042 9 Payable in dollars 3,190 2,330 5,005 6,391 4,447 5,099 6,349 6,240 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 11,556 12 Trade receivables 9,177 8,696 8,783 8,848 9,399 9,530 9,726 10,579 13 Advance payments and other claims 1,470 1,290 1,192 1,043 953 1,007 1,057 977 14 Payable in dollars 9,912 9,333 9,513 9,431 9,824 10,005 10,410 11,121 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 18 France 126 184 138 169 171 359 328 174 19 Germany 224 223 116 96 103 72 85 154 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 10,877 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 6,081 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 countries' 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 374 346 444 526 550 560 629 768 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 1,300 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 214 206 234 204 231 226 215 233 49 British West Indies 7 6 39 19 20 26 24 25 50 Mexico 583 510 412 347 369 366 371 400 51 Venezuela 206 157 237 204 192 298 322 344 52 Asia 3,073 2,982 2,755 2,642 2,800 2,919 2,867 3,013 53 Japan 1,191 1,016 881 952 1,027 1,160 1,109 1,168 54 Middle East oil-exporting countries2 668 638 563 452 434 450 412 449 55 Africa 470 437 500 378 407 401 420 423 56 Oil-exporting countries 134 130 139 123 124 144 157 136 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 A67 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1988 1988 Transactions, and area or country 1986 1987 J S a e n p . t - . Mar. Apr. May June July Aug. Sept." U.S. corporate securities STOCKS 1 Foreign purchases 148,114 249,113 144,471 18,068 15,022 13,654 20,007 19,207 17,275 11,971 2 Foreign sales 129,395 232,849 143,837 18,482 13,705 14,723 19,678 18,383 16,704 12,552 3 Net purchases, or sales (—) 18,719 16,264 634 -414 1,317 -1,069 329 824 572 -581 4 Foreign countries 18,927 16,313 674 -444 1,300 -976 287 793 548 -554 5 Europe 9,559 1,928 -1,644 -360 481 -1,151 33 227 287 -616 6 France 459 905 -257 -7 -1 -153 121 -34 -21 -37 7 Germany 341 -74 195 171 104 -66 -36 -3 9 -14 8 Netherlands 936 892 -521 -223 -145 -43 -56 20 -5 -56 9 Switzerland 1,560 -1,123 -1,494 -32 -17 -247 -204 -90 -37 -506 10 United Kingdom 4,826 630 -2 -331 429 -711 146 253 234 245 11 Canada 816 1,048 354 -61 241 102 -172 58 162 44 12 Latin America and Caribbean 3,031 1,314 774 98 230 -82 -116 58 159 310 N Middle East1 976 -1,360 -1,655 -788 24 62 -549 -159 91 -188 14 Other Asia 3,876 12,896 2,484 577 372 106 1,039 518 -228 -127 15 Japan 3,305 11,365 2,823 704 262 85 1,187 475 -282 24 16 Africa 297 123 163 5 19 23 3 78 41 5 17 Other countries 373 365 198 84 -67 -35 51 13 36 19 18 Nonmonetary international and regional organizations -208 -48 -40 31 17 -92 42 31 23 -28 BONDS2 19 Foreign purchases 123,169 105,856 62,739 7,799 5,618 7,810 8,341 8,277 5,966 7,450 20 Foreign sales 72,520 78,312 43,529 5,594 4,433 3,518 4,590 5,064 4,144 4,953 21 Net purchases, or sales (-) 50,648 27,544 19,210 2,206 1,185 4,292 3,751 3,213 1,822 2,497 22 Foreign countries 49,801 26,804 19,667 2,201 1,186 4,262 3,569 3,190 1,837 2,433 23 Europe 39,313 21,989 11,980 1,462 658 2,256 2,203 1,744 1,482 1,639 24 France 389 194 214 57 7 -18 15 -7 5 90 25 Germany -251 33 1,357 260 347 11 226 8 166 160 26 Netherlands 387 269 781 30 58 180 55 17 41 415 27 Switzerland 4,529 1,587 97 -14 -15 152 -71 -139 84 97 28 United Kingdom 33,900 19,770 8,905 976 228 1,886 1,738 1,685 1,188 821 29 Canada 548 1,296 508 87 104 98 216 130 27 -155 30 Latin America and Caribbean 1,552 2,857 1,418 248 96 141 174 254 193 45 31 Middle East1 -3,113 -1,314 -431 138 -54 -4 -124 -101 -87 -14 32 Other Asia 11,346 2,021 6,222 273 373 1,755 1,091 1,152 254 916 33 Japan 9,611 1,622 5,349 227 336 1,641 1,049 1,035 178 575 34 Africa 16 16 -12 3 4 -2 4 0 1 1 35 Other countries 139 -61 -18 -11 5 17 5 10 -33 1 36 Nonmonetary international and regional organizations 847 740 -457 5 -1 31 182 23 -14 64 Foreign securities 37 Stocks, net purchases, or sales (-) -1,853 1,149 -225 -724 372 905 -154 -126R -262 -68 38 Foreign purchases 49,149 95,263 53,559 6,693 5,797 5,964 6,404 7,052' 5,899 5,044 39 Foreign sales 51,002 94,114 53,784 7,417 5,425 5,059 6,558 7,178R 6,161 5,112 40 Bonds, net purchases, or sales (-) -3,685 -7,830 -5,440 -1,179 -137 873 -708 -659' -363 -507 41 Foreign purchases 166,992 199,010 154,345 16,561 15,593 15,119 17,013 19,224R 17,038 25,128 42 Foreign sales 170,677 206,845 159,785 17,740 15,730 14,246 17,721 19,882' 17,401 25,636 43 Net purchases, or sales (—), of stocks and bonds .... -5,538 -6,687 -5,664 -1,903 235 1,778 -863 —785r -625 -576 44 Foreign countries -6,493 -6,718 -5,958 -1,944 179 1,562 -774 -759' -655 -556 45 Europe -18,026 -12,088 -5,353 -1,541 483 681 -1,185 -488R -903 -449 46 Canada -876 -4,065 -3,254 -366 -406 -162 -186 -319 216 -730 47 Latin America and Caribbean 3,476 828 1,569 138 538 322 301 -48 -34 290 48 Asia 10,858 9,338 845 -154 -407 6% 557 237'' -114 189 49 Africa 52 89 150 48 14 -1 1 11 37 28 50 Other countries -1,977 -820 85 -70 -43 24 -262 -153' 143 115 51 Nonmonetary international and regional organizations 955 31 294 41 56 216 -89 -26 30 -19 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

A68 International Statistics • January 1989 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1988 1988 Country or area 1986 1987 J S a e n p . t - . Mar. Apr. May June July Aug. Sept." Transactions, net purchases or sales (-) during period1 1 Estimated total2 19,388 25,587 37,664 9,980 3,433 11,062 -2,162 905 -274 -2,008 2 Foreign countries2 20,491 30,889 37,759 9,017 3,728 9,972 -3,337 2,156 -40 -2,309 3 Europe2 16,326 23,716 12,247 3,471 2,332 3,108 -3,226 -1,460 -836 -1,342 4 Belgium-Luxembourg -245 653 883 454 47 159 -68 122 -209 -333 Germany2 7,670 13,330 -4,203 919 1,576 79 -4,241 -4,240 -2,020 -719 6 Netherlands 1,283 -913 -475 378 117 -22 -7% 312 -346 -115 7 Sweden .. ^ 132 210 -634 -245 -93 104 -232 -187 175 -121 8 Switzerland 329 1,917 -800 643 344 -309 654 -51 344 -1,355 9 United Kingdom 4,546 3,975 8,929 -244 97 1,523 47 837 416 1,980 10 Other Western Europe 2,613 4,563 8,540 1,570 238 1,560 1,420 1,755 803 -663 11 Eastern Europe 0 -19 6 -3 5 14 -10 -9 0 -17 12 Canada 881 4,526 2,725 372 133 1,415 669 -314 -315 -151 13 Latin America and Caribbean 926 -2,192 855 198 75 360 -580 0 -312 264 14 Venezuela -96 150 -110 20 15 1 2 -2 -128 -17 15 Other Latin America and Caribbean 1,130 -1,142 861 169 97 -17 63 57 -292 280 16 Netherlands Antilles -108 -1,200 104 10 -36 376 -645 -55 108 1 17 Asia 1,345 4,488 19,932 5,463 713 4,476 -382 3,246 1,027 -1,304 18 Japan -22 868 17,460 4330 687 2,820 -52 3,006 1,539 -2,845 19 Africa -54 -56 3 5 0 -13 -1 -10 5 31 20 Allother 1,067 407 1,998 -492 475 626 183 694 391 193 21 Nonmonetary international and regional organizations -1,104 -5,300 -96 963 -295 1,090 1,174 -1,252 -235 301 22 International -1,430 -4,387 307 968 -334 1,155 1,546 -1,137 -282 294 23 Latin American regional 157 3 -51 -5 0 7 -38 -14 -8 0 Memo 24 Foreign countries2 20,491 30,889 37,759 9,017 3,728 9,972 -3,337 2,156 -40 -2,309 25 Official institutions 14,214 31,064 21,672 8,135 3,075 5,062 -1,658 -2,362 -1,410 -1,457 26 Other foreign 6,283 -181 16,089 882 653 4,910 -1,678 4,518 1,371 -852 Oil-exporting countries 27 Middle East3 -1,529 -3,142 -243 578 514 -612 -201 295 449 -161 28 Africa 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 A69 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per year Rate on Nov. 30, 1988 Rate on Nov. 30, 1988 Rate on Nov. 30, 1988 Country Country Country e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e e M ffe o c n t t i h v e Austria.. 4.0 Aug. 1988 France 7.25 Oct. 1988 Norway 8.0 June 1983 B B e ra lg z i i u l m .. . . 4 7 9 . . 5 0 A M u a g r. . 1 19 9 8 8 1 8 G Ita e l r y m any, Fed. Rep. of. 1 3 2 . . 5 5 A A u u g g . . 1 1 9 9 8 8 8 8 S U w ni i t t e z d er l K an in d g dom2i 3.0 Aug. 1988 Canada.. 10.84 Nov. 1988 Japan 2.5 Feb. 1987 Venezuela 8.0 Oct. i985 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 May June July Aug. Sept. Oct. Nov. 1 Eurodollars 8.27 6.70 7.07 7.40 7.61 8.09 8.47 8.31 8.51 8.91 2 United Kingdom 12.16 10.87 9.65 8.00 8.91 10.45 11.29 12.09 11.94 12.23 3 Canada 9.64 9.18 8.38 9.07 9.44 9.42 9.92 10.48 10.48 10.86 4 Germany 5.40 4.58 3.97 3.51 3.88 4.88 5.28 4.93 5.03 4.91 5 Switzerland 4.92 4.19 3.67 2.23 2.82 3.67 3.57 3.34 3.62 4.10 6 Netherlands 6.29 5.56 5.24 4.07 4.10 4.85 4.50 5.51 5.35 5.30 7 France 9.91 7.68 8.14 7.81 7.27 7.32 7.58 7.86 7.87 8.03 8 Italy 14.86 12.60 11.15 10.57 10.90 11.02 11.02 11.27 11.30 11.48 9 Belgium 9.60 8.04 7.01 6.05 6.04 6.84 7.25 7.39 7.24 7.18 10 Japan 6.47 4.96 3.87 3.80 3.82 3.84 3.98 4.15 4.26 4.22 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

A70 International Statistics • January 1989 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1988 CCoouunnttrryy//ccuurrrreennccyy 11998855 11998866 11998877 June July Aug. Sept. Oct. Nov. 1 Australia/dollar^ 70.026 67.093 70.136 80.76 80.00 80.57 79.15 80.% . 85.07 2 Austria/schilling 20.676 15.260 12.649 12.380 12.991 13.281 13.135 12.777 12.307 3 Belgium/franc 59.336 44.662 37.357 36.786 38.649 39.562 39.149 38.077 36.670 4 Canada/dollar 1.3658 1.38% 1.3259 1.2176 1.2075 1.2237 1.2267 1.2055 1.2186 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 6.6893 7.0266 7.2280 7.1764 7.0055 6.7547 7 Finland/markka 6.1971 5.0721 4.4036 4.1761 4.38% 4.4720 4.4282 4.3041 4.1522 8 France/franc 8.9799 6.9256 6.0121 5.9310 6.2241 6.3919 6.3515 6.1975 5.9746 9 Germany/deutsche mark 2.9419 2.1704 1.7981 1.7579 1.8466 1.8880 1.8668 1.8165 1.7491 10 Greece/drachma 138.40 139.93 135.47 140.69 147.85 151.62 151.47 148.71 145.22 11 Hong Kong/dollar 7.7911 7.8037 7.7985 7.8073 7.8135 7.8050 7.8106 7.8133 7.8095 12 India/rupee 12.332 12.597 12.943 13.785 14.079 14.217 14.490 14.720 14.966 13 Ireland/punt2 106.62 134.14 148.79 152.65 145.49 142.17 143.60 147.30 152.70 14 Italy/lira 1908.90 1491.16 1297.03 1305.56 1367.26 1397.93 1393.15 1353.36 1300.22 15 Japan/yen 238.47 168.35 144.60 127.47 133.02 133.77 134.32 128.68 123.20 16 Malay sia/ringgit 2.4806 2.5830 2.5185 2.5860 2.6267 2.6520 2.6643 2.6785 2.6779 17 Netherlands/guilder 3.3184 2.4484 2.0263 1.9767 2.0827 2.1319 2.1063 2.0486 1.9729 18 New Zealand/dollar2 49.752 52.456 59.327 69.9% 66.832 64.815 61.480 62.113 64.067 19 Norway/krone 8.5933 7.3984 6.7408 6.3951 6.7207 6.9016 6.9150 6.7400 6.57% 20 Portugal/escudo 172.07 149.80 141.20 143.54 150.42 153.72 154.18 150.13 145.57 21 Singapore/dollar 2.2008 2.1782 2.1059 2.0285 2.0459 2.0417 2.0409 2.0202 1.9616 22 South Africa/rand 2.2343 2.2918 2.0385 2.2716 2.3985 2.4531 2.4575 2.4662 2.3943 23 South Korea/won 861.89 884.61 825.93 732.88 728.67 725.74 723.00 712.72 6%.08 24 Spain/peseta 169.98 140.04 123.54 116.25 122.27 124.122 124.36 120.02 115.17 25 Sri Lanka/rupee 27.187 27.933 29.471 31.133 31.782 32.807 32.953 32.989 32.989 26 Sweden/krona 8.6031 7.1272 6.3468 6.1074 6.3542 6.4878 6.4448 6.2694 6.0968 27 Switzerland/franc 2.4551 1.7979 1.4918 1.4629 1.5343 1.5837 1.5763 1.5372 1.4675 28 Taiwan/dollar 39.889 37.837 31.756 28.723 28.726 28.693 28.914 28.880 28.170 29 Thailand/bah t 27.193 26.314 25.774 25.280 25.523 25.560 25.548 25.365 25.146 30 United Kingdom/pound 129.74 146.77 163.98 177.68 170.51 169.65 168.40 173.87 180.85 MEMO 31 United States/dollar3 143.01 112.22 %.94 92.58 %.53 98.29 97.91 95.10 91.91 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

A71 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 po- "U.S. government securities" may include guaranteed litical subdivisions. issues of U.S. government agencies (the flow of funds figures In some of the tables, details do not add to totals because also include not fully guaranteed issues) as well as direct of 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, 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 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1988 January 1989 A78 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 Terms of lending at commercial banks, August 1988 January 1989 A72 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 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • January 1989 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 19881 A. Commercial and Industrial Loans2 Weighted Loan rate (percent) Loans Most AAmmoouunntt ooff Average aavveerraaggee made Partici- common Characteristic ( o th f o l d o u o a s l n a la s n r d s) s ( o th f o d s u o iz s l a l e a n r d s) s mmaa D ttuu ay rrii s ttyy 33 WW e a f v f ee e e ii c gg ra t hh i g tt v ee e e dd 4 Standard q r II u a nn a n tt r g ee t rr e il -- 6 e ( c p o u m e m n r e c d m n e e n t r i t t - ) ((pp p l ee o a rr t a cc i n o eenn s n tt )) p r r a ic t i e n 7 g ALL BANKS 1 Overnight8 10,986,381 4,628 * 8.88 .12 8.48-9.14 76.4 3.2 Fed funds 2 One month and under 6,733,440 671 15 9.22 .11 8.59-9.45 79.8 7.6 Domestic 3 Fixed rate 5,355,084 855 14 9.10 .13 8.48-9.28 77.3 7.7 Domestic 4 Floating rate 1,378,356 366 20 9.69 .24 8.63-10.75 89.7 7.2 Domestic 5 Over one month and under a year . 9,480,901 131 128 10.17 .13 9.29-10.92 77.1 16.0 Prime 6 Fixed rate 5,189,617 137 93 9.92 .11 9.11-10.52 75.2 17.9 Foreign 7 Floating rate 4,291,285 124 171 10.47 .18 9.84-11.04 79.5 13.6 Prime 8 Demand9 17,489,752 227 * 10.27 .18 8.97-11.07 81.7 13.3 Prime 9 Fixed rate 3,107,635 624 * 8.88 .18 8.38-9.47 80.9 33.2 Domestic 10 Floating rate 14,382,117 199 * 10.58 .19 9.92-11.46 81.9 9.0 Prime 11 Total short term 44,690,474 276 49 9.75 .13 8.67-10.52 79.1 10.5 Prime 12 Fixed rate (thousands of dollars)... 24,638,508 479 27 9.15 .08 8.53-9.51 76.9 11.1 Fed funds 13 1-24 267,711 7 102 11.89 .14 11.07-12.75 21.5 .0 Prime 14 25-49 164,686 31 122 11.56 .18 10.52-12.75 30.7 .2 Prime 15 50-99 209,305 64 104 10.83 .10 9.89-12.01 49.5 .3 Prime 16 100-499 590,502 189 80 10.37 .13 9.85-11.07 46.2 1.7 Prime 17 500-999 412,330 663 51 9.87 .10 8.87-10.92 58.9 10.5 Other 18 1000 and over 22,993,972 7,066 23 9.04 .05 8.49-9.37 79.2 11.6 Fed funds 19 Floating rate (thousands of dollars) 20,051,966 182 134 10.49 .17 9.84-11.30 81.9 9.9 Prime 20 1-24 500,450 9 159 11.70 .08 11.02-12.19 74.9 .9 Prime 21 25-49 570,128 34 161 11.46 .06 10.92-12.13 80.7 2.9 Prime 22 50-99 1,015,333 67 156 11.27 .06 10.52-12.13 83.4 3.8 Prime 23 100-499 3,700,965 200 162 10.94 .09 9.96-11.57 86.8 5.8 Prime 24 500-999 1,735,206 658 137 10.57 .04 9.92-11.03 89.0 9.7 Prime 25 1000 and over 12,529,885 4,480 120 10.20 .22 8.84-11.02 79.7 12.3 Prime Months 26 Total long term 3,451,808 205 44 10.44 .19 9.54-11.30 62.7 17.6 Prime 27 Fixed rate (thousands of dollars)... 1,349,955 183 42 9.92 .24 8.68-10.92 65.4 14.9 Other 28 1-99 142,752 22 60 11.53 .33 11.02-12.40 23.9 1.0 Prime 29 100-499 116,774 236 60 11.06 .20 9.96-12.13 25.4 1.8 Prime 30 500-999 66,310 698 36 10.87 .47 9.42-12.13 30.8 .0 Prime 31 1000 and over 1,024,120 7,391 38 9.50 .23 8.42-10.38 78.0 19.4 Fed funds 32 Floating rate (thousands of dollars) 2,101,853 222 44 10.77 .20 9.96-11.57 60.9 19.3 Prime 33 1-99 204,847 28 49 11.59 .15 11.02-12.13 30.3 1.4 Prime 34 100-499 379,400 228 49 11.03 .09 10.47-11.57 42.7 9.8 Prime 35 500-999 171,316 672 42 10.64 .16 10.20-11.19 60.7 14.2 Prime 36 1000 and over 1,346,290 4,531 43 10.59 .21 9.85-11.46 70.7 25.3 Prime Loan rate (percent) DDaayyss Prime ra . t i e t Effective4 Nominal10 LOANS MADE BELOW PRIME12 • 37 Overnight8 10,332,162 7,575 8.78 8.41 9.50 75.3 3.3 38 One month and under 5,495,766 4,923 13 8.82 8.46 9.50 80.2 8.4 39 Over one month and under a year 3,765,735 668 125 9.07 8.75 9.64 84.8 22.5 40 Demand9 5,466,503 1,995 * 8.59 8.38 9.51 68.5 15.0 41 Total short term 25,060,166 2,308 28 8.79 8.47 9.52 76.3 9.9 42 Fixed rate 20,171,775 2,822 19 8.80 8.46 9.51 77.2 9.4 43 Floating rate 4,888,391 1,318 114 8.77 8.48 9.60 72.9 12.0 Months 44 Total long term 950,417 624 34 8.87 8.60 9.56 91.4 5.5 45 Fixed rate 553,164 664 36 8.64 8.44 9.53 89.7 6.1 46 Floating rate .. 397,253 577 32 9.18 8.81 9.60 93.8 4.8 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A73 4.23—Continued A. Commercial and Industrial Loans2—Continued Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (tho lo u a s n a s n ds (tho s u iz sa e nds maturity3 Weighted Standard Inter- co u m nd m er it p lo at a i n o s n of dollars) of dollars) Days e a f v fe e c ra ti g v e e 4 error5 q r u a a n r g ti e l 6 e (p m er e c n e t n t) (percent) LARGE BANKS 1 Overnight8 8,980,522 8.91 8.53-9.14 71.1 3.6 2 One month and under 4,789,534 3,023 15 9.13 8.45-9.36 87.4 6.6 3 Fixed rate 3,813,568 4,411 14 9.02 8.40-9.24 85.7 6.8 4 Floating rate 975,967 1,356 19 9.53 8.63-10.34 94.1 5.7 5 Over one month and under a year . 5,558,962 835 113 9.85 9.11-10.47 86.5 20.4 6 Fixed rate 3,600,813 1,760 87 9.79 9.21-10.47 86.3 21.4 7 Floating rate 1,958,149 425 161 9.97 8.79-10.95 87.0 18.7 8 Demand9 10,846,970 644 10.12 8.64-11.02 76.5 16.3 9 Fixed rate 2,345,821 3,792 8.89 8.37-9.38 87.2 40.2 10 Floating rate 8,501,149 524 10.47 9.00-11.46 73.5 9.7 11 Total short term 30,175,989 1,144 9.55 8.60-10.20 78.5 11.8 12 Fixed rate (thousands of dollars)... 18,740,724 3,877 23 9.10 8.53-9.45 79.0 12.3 13 1-24 9,440 10 81 11.36 10.52-12.03 29.1 .3 14 25-49 10,696 32 73 11.22 10.63-12.02 32.7 .0 15 50-99 23,122 66 72 10.86 9.96-11.47 37.9 1.6 16 100-499 134,925 218 66 10.07 9.27-10.92 66.1 3.1 17 500-999 180,899 690 52 9.80 9.07-10.40 74.6 10.2 18 1000 and over 18,381,642 7,762 22 9.08 8.53-9.41 79.2 12.4 19 Floating rate (thousands of dollars) 11,435,264 531 114 10.30 8.89-11.07 77.6 10.9 20 1-24 75,948 11 142 11.38 10.47-12.13 84.7 .6 21 25-49 112,215 34 134 11.29 10.47-12.10 84.6 .6 22 50-99 215,149 66 141 11.13 10.47-11.63 86.9 1.1 23 100-499 1,172,111 211 135 10.82 9.96-11.46 87.1 4.1 24 500-999 787,149 667 127 10.60 9.92-11.30 89.4 6.0 25 1000 and over 9,072,692 5,710 109 10.17 8.64-11.02 75.0 12.7 Months 26 Total long term 1,567,629 847 9.79 8.70-10.38 81.7 9.2 27 Fixed rate (thousands of dollars)... 745,120 1,679 9.38 8.37-10.15 83.7 17.2 28 1-99 7,408 26 12.25 11.30-12.96 48.5 4.9 29 100-499 21,977 295 10.74 9.96-11.40 31.2 2.0 30 500-999 19,531 719 10.39 9.25-11.40 58.7 .0 31 1000 and over 696,204 12,362 9.27 8.37-9.92 86.5 18.3 32 Floating rate (thousands of dollars) 822,509 584 10.17 9.49-10.92 79.9 2.0 33 1-99 25,806 35 11.68 10.47-12.68 68.3 .8 34 100-499 94,858 212 11.04 10.20-11.57 70.4 5.8 35 500-999 66,310 657 10.70 10.20-11.30 69.1 4.6 36 1000 and over 635,534 5,339 9.92 8.73-10.52 82.9 1.2 Loan rate (percent) Days Effective4 Nominal LOANS MADE BELOW PRIME12 37 Overnight8 8,389,197 7,868 8.80 8.43 9.50 69.6 3.8 38 One month and under 4,085,120 6,078 13 8.79 8.43 9.50 87.4 7.1 39 Over one month and under a year 2,631,792 4,537 125 8.66 9.50 88.1 23.1 40 Demand9 4,406,948 4,998 8.62 8.43 9.50 66.3 15.4 41 Total short term 19,513,057 6,097 8.78 8.46 9.50 75.1 9.7 42 Fixed rate 15,604,762 6,338 17 8.81 8.48 9.50 76.7 9.9 43 Floating rate 3,908,296 5,295 110 8.66 8.39 9.50 68.5 9.2 Months 44 Total long term 726,379 5,184 34 8.81 8.57 9.50 94.5 4.6 45 Fixed rate 414,576 6,750 8.61 8.45 9.50 91.3 8.0 46 Floating rate .. 311,804 3,963 9.08 8.73 9.50 .1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • January 1989 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 1988'—Continued A. Commercial and Industrial Loans—Continued2 Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic (tho lo u a s n a s n ds (tho s u iz sa e n ds maturity3 Weighted Standard Inter- co u m nd m e i r t p lo at a i n o s n of dollars) of dollars) Days e a f v fe e c ra ti g v e e 4 error5 q r u a a n r g ti e l 6 e (pe m rc en en t t) (percent) OTHER BANKS 1 Overnight8 2,005,859 1,874 8.74 8.44-9.01 99.8 2 One month and under 1,943,906 230 16 9.47 8.84-9.93 61.2 10.2 3 Fixed rate 1,541,517 286 15 9.31 8.84-9.36 56.6 10.0 4 Floating rate 402,389 132 22 10.08 9.37-11.02 78.9 11.0 5 Over one month and under a year . 3,921,939 60 149 10.63 9.84-11.47 63.8 9.6 6 Fixed rate 1,588,804 44 106 10.24 8.82-11.46 50.1 10.1 7 Floating rate 2,333,136 78 179 10.90 9.92-11.51 73.1 9.3 8 Demand9 6,642,782 110 10.52 9.92-11.30 90.2 8.5 9 Fixed rate 761,814 175 8.87 8.54-9.71 61.5 11.7 10 Floating rate 5,880,968 105 10.73 9.92-11.35 93.9 8.0 11 Total short term 14,514,486 107 10.16 8.97-11.02 80.5 8.0 12 Fixed rate (thousands of dollars)... 5,897,784 127 38 9.31 8.49-9.79 70.2 7.2 13 1-24 258,271 7 102 11.91 11.07-12.75 21.2 .0 14 25-49 153,990 31 126 11.59 10.52-12.75 30.5 .2 15 50-99 186,183 64 109 10.83 9.89-12.01 50.9 .1 16 100-499 455,578 181 84 10.45 9.92-11.19 40.2 1.3 17 500-999 231,431 644 51 9.93 8.82-11.57 46.6 10.8 18 1000 and over 4,612,331 5,204 23 8.48-9.20 79.2 8.6 19 Floating rate (thousands of dollars) 8,616,702 97 156 10.75 9.92-11.35 87.6 8.5 20 1-24 424,502 9 161 11.75 11.02-12.40 73.1 1.0 21 25-49 457,913 34 165 11.51 10.93-12.13 79.7 3.4 22 50-99 800,183 67 158 11.31 10.75-12.13 82.4 4.5 23 100-499 2,528,853 195 170 10.99 9.96-11.57 86.6 6.6 24 500-999 948,057 650 143 10.55 9.92-11.02 88.6 12.8 25 1000 and over 3,457,193 2,862 146 10.27 9.92-10.92 92.0 11.3 Months 26 Total long term 1,884,179 126 10.98 10.38-11.63 46.8 27 Fixed rate (thousands of dollars)... 604,835 87 10.58 10.00-11.43 42.9 12.2 28 1-99 135,344 21 11.49 11.02-12.40 22.6 .8 29 100-499 94,797 226 11.14 9.93-12.13 24.1 1.7 30 500-999 46,779 689 11.06 10.92-12.13 19.1 .0 31 1000 and over 327,916 3,987 9.97 8.47-10.50 60.1 21.6 32 Floating rate (thousands of dollars) 1,279,344 159 11.16 10.65-11.78 48.6 30.4 33 1-99 179,041 28 11.58 11.02-12.13 24.8 1.5 34 100-499 284,542 233 11.03 10.47-11.63 33.5 11.1 35 500-999 105,005 682 10.60 10.24-11.02 55.4 20.3 36 1000 and over 710,756 3,991 11.19 10.79-11.78 59.7 46.9 Loan rate (percent) Days Prime rate Effective4 Nominal10 LOANS MADE BELOW PRIME12 37 Overnight8 1,942,964 6,524 8.68 8.32 9.50 100.0 1.2 38 One month and under 1,410,647 3,176 14 8.90 8.54 9.51 59.1 12.3 39 Over one month and under a year 1,133,943 224 125 9.28 8.94 9.95 77.2 21.1 40 Demand9 1,059,555 570 8.48 8.15 9.56 77.6 13.5 41 Total short term 5,547,109 724 8.82 8.47 9.61 80.7 10.4 42 Fixed rate 4,567,013 975 25 8.74 8.39 9.52 78.6 7.6 43 Floating rate 980,095 330 127 9.19 8.83 10.00 90.2 23.5 Months 44 Total long term 224,038 162 33 9.03 8.68 9.76 81.3 8.5 45 Fixed rate 138,589 179 8.73 8.40 9.64 84.8 .3 46 Floating rate 85,449 140 9.53 9.13 9.96 75.7 21.7 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A75 4.23—Continued B. Construction and Land Development Loans' Loan rate (percent) AAmmoouunntt ooff AAvveerraaggee WWeeiigghhtteedd LLooaannss mmaaddee PPaarrttiiccii-llooaannss ssiizzee aavveerraaggee mmaa-- uunnddeerr ccoomm-- ppaattiioonn CChhaarraacctteerriissttiicc ((tthhoouussaannddss ((tthhoouussaannddss ttuurriittyy Weighted Standard Inter- mmiittmmeenntt llooaannss ooff ddoollllaarrss)) ooff ddoollllaarrss)) ((mmoonntthhss))33 e a ff v e e c r t a i g v e e 4 error5 q r u a a n r g t e il 6 e ((ppeerrcceenntt)) ((ppeerrcceenntt)) ALL BANKS 1 Total 3,565,113 179 11 10.54 .15 9.92-11.04 89.4 22.4 2 Fixed rate (thousands of dollars) 1,453,594 177 6 10.09 .30 9.52-10.45 85.8 23.1 3 1-24 43,845 9 21 11.92 .20 11.36-12.75 64.3 .0 4 25-49 69,156 38 11 11.64 .22 11.46-11.57 58.5 .0 50-99 44,427 62 14 12.33 .37 12.19-12.75 32.5 .0 6 100-499 143,434 215 22 10.84 .29 8.66-11.57 20.6 1.5 7 500 and over 1,152,732 8,431 3 9.75 .87 9.52-10.23 98.4 28.9 8 Floating rate (thousands of dollars) ... 2,111,519 180 15 10.84 .12 10.47-11.33 91.8 21.9 9 1-24 52,745 10 9 11.52 .08 11.02-12.13 92.5 2.1 10 25-49 65,978 38 9 12.15 .24 11.02-14.17 64.2 2.4 11 50-99 109,828 69 13 11.50 .15 11.02-11.85 86.1 1.9 1? 100-499 565,492 228 17 11.06 .08 10.75-11.57 94.6 2.5 13 500 and over 1,317,476 2,782 15 10.60 .11 10.27-11.02 92.5 33.6 By type of construction 14 Single family 784,307 67 12 11.12 ..1177 1100..9922--1111..5577 8855..00 22..22 15 Multifamily 235,273 214 11 11.13 .20 10.45-11.57 85.2 .4 16 Nonresidential 2,545,532 357 10 10.30 .16 9.63-10.75 91.1 30.6 LARGE BANKS13 1 Total 2,166,922 1,032 6 10.15 .21 9.63-10.55 98.5 33.5 2 Fixed rate (thousands of dollars) 1,113,385 3,430 3 9.79 .22 9.52-10.23 99.7 30.1 1-24 834 9 11 11.09 .17 10.86-11.30 68.0 .0 4 25-49 2,186 36 2 10.67 .36 9.92-11.02 83.2 .0 5 50-99 2,068 75 14 10.50 .49 9.92-11.57 66.8 .0 6 100-499 9,052 203 5 10.06 .34 9.39-10.47 80.9 23.6 7 500 and over 1,099,245 10,938 3 9.78 .31 9.52-10.23 100.0 30.3 8 Floating rate (thousands of dollars) ... 1,053,537 593 11 10.53 .17 10.10-11.02 97.1 37.0 9 1-24 5,769 11 9 11.41 .14 11.02-12.01 88.9 4.1 10 25-49 12,154 36 17 11.13 .14 10.75-11.57 94.1 2.3 11 50-99 18,838 71 19 11.06 .16 10.69-11.57 95.2 4.1 1? 100-499 82,499 217 18 10.89 .12 10.47-11.30 97.5 10.2 13 500 and over 934,278 3,423 11 10.47 .16 10.10-10.75 97.2 40.7 By type of construction 14 Single family 82,354 164 12 11.13 .30 10.75—11.57 9977..55 1155..33 15 Multifamily 146,154 501 5 10.68 .18 10.34-11.02 83.4 .4 16 Nonresidential 1,938,413 1,485 6 10.07 .19 9.52-10.47 99.6 36.8 OTHER BANKS13 1 Total 1,398,191 78 18 11.14 .15 10.61-11.57 75.3 5.1 2 Fixed rate (thousands of dollars) 340,209 43 17 11.08 .57 10.75-12.19 40.1 .0 3 1-24 43,011 9 21 11.94 .26 11.46-12.75 64.3 .0 4 25-49 66,970 38 11 11.67 .13 11.46-11.57 57.7 .0 5 50-99 42,359 61 14 12.42 .27 12.68-12.75 30.9 .0 6 100-499 134,382 216 23 10.89 .30 8.66-11.57 16.6 .0 7 500 and over * * * * * * * * 8 Floating rate (thousands of dollars) ... 1,057,982 106 19 11.16 .09 10.61-11.57 86.6 6.8 9 1-24 46,976 10 9 11.54 .10 11.02-12.13 92.9 1.9 10 25-49 53,824 38 8 12.39 .42 11.02-14.17 57.4 2.4 11 50-99 90,990 68 12 11.59 .24 11.02-12.13 84.3 1.4 1? 100-499 482,993 230 16 11.09 .06 10.75-11.57 94.1 1.2 13 500 and over 383,199 1,910 23 10.93 .11 10.52-11.04 80.9 16.3 By type of construction 14 Single family 701,953 63 12 11.12 ..2200 1111..0022--1111..5577 8833..55 ..66 15 Multifamily 89,119 110 17 11.87 .31 11.02-13.03 88.3 .4 16 Nonresidential 607,119 104 22 11.06 .20 10.52-11.57 63.8 11.0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • January 1989 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 1988'—Continued C. Loans to Farmers14 Size class of loans (thousands) CChhaarraacctteerriissttiicc $250 All sizes $1-9 $10-24 $25-49 $50-99 $100-249 and over ALL BANKS 1 Amount of loans (thousands of dollars) $1,100,644 $105,658 $152,673 $145,694 $125,963 $167,437 $403,220 2 Number of loans 46,891 29,014 10,106 4,385 1,920 1,133 333 3 Weighted average maturity (months)3 7.0 6.1 6.5 6.4 8.2 5.2 8.0 4 Weighted average interest rate (percent)4 11.50 11.84 11.66 11.46 11.75 11.53 11.27 5 Standard error .52 .18 .34 .31 .32 .38 .79 6 Interquartile rante 10.77-12.19 11.30-12.29 11.02-12.22 10.52-12.16 11.27-12.28 10.77-12.28 10.38-11.85 By purpose of loan 1 Feeder livestock 11.25 11.64 1111..1155 1111..0033 1122..0033 1111..7711 1100..8811 8 Other livestock 12.36 11.86 11.52 12.39 9 Other current operating expenses 11.52 11.85 11.75 11.51 11.48 11.35 11.39 10 Farm machinery and equipment 11.57 11.99 11.54 * * * * 11 Farm real estate 11.75 11.88 11.26 * * * * 12 Other 10.96 11.89 11.69 11.92 11.80 11.52 10.31 Percentage of amount of loans 13 With floating rates 62.1 4433..22 4477..88 4466..55 5555..00 5544..99 8833..22 14 Made under commitment 47.1 43.5 41.5 53.8 49.9 55.0 43.5 By purpose of loan 15 Feeder livestock 12.8 99..77 1100..00 2277..77 1144..55 1100..99 99..44 16 Other livestock 8.9 4.4 3.5 5.0 * * * 17 Other current operating expenses 58.2 69.7 67.8 57.5 43.8 55.1 57.7 18 Farm machinery and equipment 3.3 5.3 7.2 * * * * 19 Farm real estate 3.7 1.8 .9 * * * * 20 Other 13.1 9.2 10.6 4.8 9.6 13.3 18.9 LARGE BANKS14 1 Amount of loans (thousands of dollars) $321,304 $9,582 $16,875 $21,194 $20,665 $58,626 $194,362 2 Number of loans 5,177 2,509 1,154 620 305 385 204 3 Weighted average maturity (months) 7.1 5.2 6.8 6.3 9.3 7.8 7.0 4 Weighted average interest rate (percent)4 10.71 11.83 11.47 11.33 11.34 11.10 10.33 5 Standard error .48 .11 .30 .27 .17 .22 .64 6 Interquartile rante 9.92-11.50 11.30-12.35 10.92-12.13 10.75-12.01 10.78-12.01 10.38-11.91 9.92-10.79 By purpose of loan 7 Feeder livestock 11.04 11.25 11.05 11.33 11.43 11.52 10.81 8 Other livestock 10.49 12.38 * 11.49 * * 9 Other current operating expenses 10.65 11.83 11.44 11.21 11.26 10.72 10.12 10 Farm machinery and equipment 11.46 12.65 12.02 * * * * 11 Farm real estate 10.59 11.50 11.51 * * * # 12 Other 10.62 12.07 11.70 11.69 11.55 11.44 10.31 Percentage of amount of loans 13 With floating rates 8811..44 9911..11 9944..77 9944..22 9999..11 9944..33 7722..66 14 Made under commitment 85.6 88.2 91.3 90.9 95.9 94.7 80.5 By purpose of loan 15 Feeder livestock 18.8 77..22 88..00 2200..00 1155..33 2222..11 1199..55 16 Other livestock 5.6 1.8 5.4 * * 17 Other current operating expenses 42.1 78.1 67.7 55.4 55.6 48.9 33.1 18 Farm machinery and equipment .7 2.1 3.3 * * * * 19 Farm real estate 1.1 2.0 2.7 * * * * 20 Other 31.8 8.8 15.6 15.1 23.2 24.4 39.3 OTHER BANKS14 1 Amount of loans (thousands of dollars) $779,340 $96,077 $135,798 $124,499 $105,298 $108,811 * 2 Number of loans 41,713 26,505 8,952 3,765 1,615 747 * 3 Weighted average maturity (months) 6.9 6.2 6.5 6.5 8.0 4.4 4 Weighted average interest rate (percent)4 11.82 11.85 11.68 11.48 11.83 11.77 * 5 Standard error5 .16 .13 .14 .13 .27 .30 * 6 Interquartile rante6 11.34-12.28 11.30-12.29 11.04-12.28 10.52-12.19 11.30-12.28 10.92-12.34 By purpose of loan 7 Feeder livestock 1111..4400 1111..6677 1111..1166 1111..0000 * * * 8 Other livestock 12.78 11.84 * * * * 9 Other current operating expenses 11.75 11.86 11.79 11.56 11.54 * 10 Farm machinery and equipment 11.58 11.96 11.52 * * * * 11 Farm real estate 11.85 * * 12 Other 11.81 11.87 11.69 * * * For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued C. Loans to Farmers14—Continued Size class of loans (thousands) Characteristic $250 All sizes $1-9 $10-24 $25-49 $50-99 $100-249 and over Percentage of amount of loans 13 With floating rates 54.1 38.5 42.0 38.4 46.3 14 Made under commitment 31.2 39.0 35.3 47.5 40.8 * By purpose of loan • 15 Feeder livestock 10.3 9.9 10.3 29.0 * * 16 Other livestock 10.2 4.7 * * * * * 17 Other current operating expenses 64.9 68.8 67.9 57.9 41.5 * * 18 Farm machinery and equipment 4.4 5.6 7.7 * 19 Farm real estate 4.8 * 20 Other 5.3 9.3 9.9 * * * *Fewer than 10 sample loans. 6. The interquartile range shows the interest rate range that encompasses the 1. The survey of terms of bank lending to business collects data on gross loan middle 50 percent of the total dollar amount of loans made. extensions made during the first full business week in the mid-month of each 7. The most common base rate is that rate used to price the largest dollar quarter by a sample of 340 commercial banks of all sizes. A subsample of 250 volume of loans. Base pricing rates include the prime rate (sometimes referred to banks also report loans to farmers. The sample data are blown up to estimate the as a bank's "basic" or "reference" rate); the federal funds rate; domestic money lending terms at all insured commercial banks during that week. The estimated market rates other than the federal funds rate; foreign money market rates; and terms of bank lending are not intended for use in collecting the terms of loans other base rates not included in the foregoing classifications. extended over the entire quarter or residing in the portfolios of those banks. 8. Overnight loans are loans that mature on the following business day. Construction and land development loans include both unsecured loans and loans 9. Demand loans have no stated date of maturity. secured by real estate. Thus, some of the construction and land development 10. Nominal (not compounded) annual interest rates are calculated from survey loans would be reported on the statement of condition as real estate loans and the data on the stated rate and other terms of the loan and weighted by loan size. remainder as business loans. Mortgage loans, purchased loans, foreign loans, and 11. The prime rate reported by each bank is weighted by the volume of loans loans of less than $1,000 are excluded from the survey. extended and then averaged. As of Dec. 31, 1987, assets of most of the large banks were at least $6.0 billion. 12. The proportion of loans made at rates below prime may vary substantially For all insured banks total assets averaged $220 million. from the proportion of such loans outstanding in banks' portfolios. 2. Beginning with the August 1986 survey respondent banks provide informa- 13. 58.5 percent of construction and land development loans were priced tion on the type of base rate used to price each commercial and industrial loan relative to the prime rate. made during the survey week. This reporting change is reflected in the new 14. Among banks reporting loans to farmers (Table C), most "large banks" column on the most common base pricing rate in table A and footnote 13 from (survey strata 1 to 3) had over $600 million in total assets, and most "other banks" table B. (survey strata 4 to 6) had total assets below $600 million. 3. Average maturities are weighted by loan size and exclude demand loans. The survey of terms of bank lending to farmers now includes loans secured by 4. Effective (compounded) annual interest rates are calculated from the stated farm real estate. In addition, the categories describing the purpose of farm loans rate and other terms of the loan and weighted by loan size. have now been expanded to include "purchase or improve farm real estate." In 5. The chances are about two out of three that the average rate shown would previous surveys, the purpose of such loans was reported as "other." differ by less than this amount from the average rate that would be found by acomplete survey of lending at all banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • January 1989 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1988 Millions of dollars All states2 New York California Illinois IItteemm in T c IB l o u t F d a i s l n g o IB nl F y s 3 inc T IB l o u F t d a i s l n g o IB nl F y s 3 inc T I l B o u F t d a i s l n g o IB nl F y s 3 in T c IB l o u t F d a s i l n g o IB nl F y s 3 1 Total assets4 478,436 227,580 348,858 178,352 73,498 31,635 31,775 10,090 2 Claims on nonrelated parties 434,873 190,751 318,808 150,366 64,989 25,897 31,747 9,758 3 Cash and balances due from depository institutions 111,718 94,276 90,546 7755,,998844 1100,,227700 99,,660011 88,,222222 66,,773311 4 Cash items in process of collection and unposted debits 441 0 392 0 30 0 4 0 5 Currency and coin (U.S. and foreign) 27 n.a. 20 n.a. 2 n.a. 2 n.a. 6 Balances with depository institutions in United States 6600,,448888 45,126 4488,,559933 3355,,776600 55,,775588 55,,119944 44,,997700 33,,558866 7 U.S. branches and agencies of other foreign banks (including their IBFs) 53,599 42,958 43,113 33,848 5,311 55,,009911 44,,226644 33,,445533 8 Other depository institutions in United States (including their IBFs) 6,889 2,168 5,480 11,,991111 446 103 706 113333 9 Balances with banks in foreign countries and with foreign central banks 49,655 49,150 40,667 40,224 4,421 4,407 3,163 3,145 10 Foreign branches of U.S. banks 1,769 1,646 1,493 11,,338833 124 123 111 110066 11 Other banks in foreign countries and foreign central banks 47,886 47,504 39,174 38,841 4,297 4,283 3,052 3,039 12 Balances with Federal Reserve Banks 1,108 n.a. 874 n.a. 60 n.a. 83 n.a. 13 Total securities and loans 262,271 89,257 179,860 68,880 45,042 15,185 21,872 2,700 14 Total securities, book value 34,875 10,014 28,068 7,725 4,341 1,863 1,309 291 15 U.S. Treasury 6,657 n.a. 6,186 n.a. 279 n.a. 126 n.a. 16 Obligations of U.S. government agencies and corporations 4,066 n.a. 4,031 n.a. 34 n.a. 0 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 24,152 10,014 17,851 7,725 4,027 1,863 1,183 291 18 Federal funds sold and securities purchased under agreements to resell 16,168 1,732 15,259 1,377 322 75 132 56 19 U.S branches and agencies of other foreign banks 9,394 797 8,823 578 257 75 98 56 20 Commercial banks in United States 2,741 27 2,552 27 54 0 30 0 21 Other 4,033 908 3,884 773 11 0 3 0 22 Total loans, gross 227,617 79,346 151,899 61,192 40,802 13,388 20,569 2,409 23 Less: Unearned income on loans 221 103 107 37 101 65 7 0 24 Equals: Loans, net 227,395 79,243 151,792 61,155 40,701 13,322 20,563 2,409 Total loans, gross, by category 2255 Real estate loans 17,600 179 9,204 153 3,670 19 2,541 0 26 Loans to depository institutions 62,208 44,298 44,996 31,146 13,004 10,154 2,569 1,707 27 Commercial banks in United States (including IBFs) . 32,455 16,487 22,440 10,239 8,141 5,377 1,599 776 28 U.S. branches and agencies of other foreign banks . 29,274 15,586 19,726 9,580 7,809 5,201 1,516 711 29 Other commercial banks in United States 3,181 901 2,714 659 332 177 8833 6655 30 Other depository institutions in United States (including IBFs) 140 20 65 20 40 0 25 0 31 Banks in foreign countries 29,612 27,791 22,491 20,887 4,823 4,777 945 931 32 Foreign branches of U.S. banks 751 689 628 567 62 62 58 58 33 Other banks in foreign countries 28,862 27,102 21.863 20,320 4,761 4,715 887 874 34 Other financial institutions 5,765 510 3,765 420 865 37 690 35 35 Commercial and industrial loans 118,054 17,833 73,569 14,939 21,276 2,089 14,272 441 36 U.S. addressees (domicile) 95,909 290 55,554 235 18,677 52 13,736 0 37 Non-U.S. addressees (domicile) 22,145 17,543 18,015 14,704 2,599 2,037 537 441 38 Acceptances of other banks 878 17 679 12 163 0 6 5 39 U.S. banks 340 0 231 0 92 0 1 0 40 Foreign banks 537 17 448 12 72 0 5 5 41 Loans to foreign governments and official institutions (including foreign central banks) 17,948 16,306 15,699 14,348 1,119 11,,008866 242 221 42 Loans for purchasing or carrying securities (secured and unsecured) 2,955 23 2,281 19 638 0 0 0 43 All other loans 2,210 180 1,705 154 66 3 249 0 44 All other assets 44,715 5,486 33,142 4,126 9,356 1,037 1,521 271 45 Customers' liability on acceptances outstanding 29,367 n.a. 21,113 n.a. 7,075 n.a. 827 n.a. 46 U.S. addressees (domicile) 19,517 n.a. 11,929 n.a. 6,664 n.a. 818 n.a. 47 Non-U.S. addressees (domicile) 9,849 n.a. 9,184 n.a. 410 n.a. 9 nn..aa.. 48 Other assets including other claims on nonrelated parties 15,348 5,486 12,029 4,126 2,281 1,037 694 271 49 Net due from related depository institutions5 43,563 36,829 30,050 2277,,998866 88,,550088 55,,773388 2288 333333 50 Net due from head office and other related depository institutions5 43,563 n.a. 30,050 n.a. 88,,550088 n.a. 28 nn..aa.. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 36,829 n.a. 27,986 n.a. 5,738 n.a. 333 52 Total liabilities4 478,436 227,580 348,858 178,352 73,498 31,635 31,775 10,090 53 Liabilities to nonrelated parties 413,507 197,857 314,022 156,881 66,800 28,674 18,268 5,869 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 4.30—Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c IB l o u F t d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u F t d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 54 Total deposits and credit balances 60,583 154,436 49,756 136,410 2,184 9,373 3,409 3,437 55 Individuals, partnerships, and corporations 46,828 13,166 36,952 8,525 2,062 518 2,748 85 56 U.S. addressees (domicile) 35,564 138 29,612 134 607 0 2,484 2 57 Non-U.S. addressees (domicile) 11,264 13,028 7,341 8,391 1,455 518 264 83 58 Commercial banks in United States (including IBFs) . 9,491 51,427 8,809 44,743 28 4,671 637 1,526 59 U.S. branches and agencies of other foreign banks . 3,165 45,124 2,620 39,222 6 4,158 538 1,305 60 Other commercial banks in United States 6,326 6,303 6,189 5,521 21 513 99 221 61 Banks in foreign countries 2,283 79,264 2,164 72,884 36 4,066 2 1,809 62 Foreign branches of U.S. banks 255 7,469 235 6,217 20 732 0 447 63 Other banks in foreign countries 2,028 71,795 1,929 66,667 16 3,334 2 1,362 64 Foreign governments and official institutions (including foreign central banks) 840 10,436 783 10,116 24 111188 2 1188 65 All other deposits and credit balances 637 143 624 143 1 0 2 0 66 Certified and official checks 504 n.a. 423 n.a. 33 n.a. 18 n.a. 67 Transaction accounts and credit balances (excluding IBFs) 6,592 5,488 247 220 68 Individuals, partnerships, and corporations 4,294 3,360 204 1% 69 U.S. addressees (domicile) 2,824 2,310 159 192 70 Non-U.S. addressees (domicile) 1,469 1,050 46 4 71 Commercial banks in United States (including IBFs) . 265 258 0 0 72 U.S. branches and agencies of other foreign banks . 90 90 0 0 73 Other commercial banks in United States 175 n.a. 168 n.a. 0 n.a. 0 n.a. 74 Banks in foreign countries 900 843 6 2 75 Foreign branches of U.S. banks 49 49 0 0 76 Other banks in foreign countries 852 794 6 2 77 Foreign governments and official institutions (including foreign central banks) 398 338811 4 2 78 All other deposits and credit balances 231 222 1 II 79 Certified and official checks 504 423 33 1188 80 Demand deposits (included in transaction accounts and credit balances) 5,563 4,722 118899 205 81 Individuals, partnerships, and corporations 3,706 3,031 146 182 82 U.S. addressees (domicile) 2,448 2,062 119 179 83 Non-U.S. addressees (domicile) 1,258 969 27 3 84 Commercial banks in United States (including IBFs) . 92 87 0 0 85 U.S. branches and agencies of other foreign banks . 18 18 0 0 86 Other commercial banks in United States 74 n.a. 69 n.a. 0 n.a. 0 n.a. 87 Banks in foreign countries 795 740 5 2 88 Foreign branches of U.S. banks 49 49 0 0 89 Other banks in foreign countries 747 691 5 2 90 Foreign governments and official institutions (including foreign central banks) 337 332211 3 2 91 All other deposits and credit balances 128 120 0 1 92 Certified and official checks 504 423 33 18 93 Non-transaction accounts (including MMDAs, excluding IBFs) 53,991 44,268 1,937 3,189 94 Individuals, partnerships, and corporations 42,534 33,592 1,858 2,552 95 U.S. addressees (domicile) 32,740 27,302 448 2,292 % Non-U.S. addressees (domicile) 9,794 6,290 1,409 260 97 Commercial banks in United States (including IBFs) . 9,226 8,551 27 636 98 U.S. branches and agencies of other foreign banks . 3,075 2,530 6 538 99 Other commercial banks in United States 6,151 n.a. 6,021 n.a. 21 n.a. 99 n.a. 100 Banks in foreign countries 1,383 1,321 30 0 101 Foreign branches of U.S. banks 206 186 20 0 102 Other banks in foreign countries 1,177 1,135 10 0 103 Foreign governments and official institutions (including foreign central banks) 442 440022 2200 00 104 All other deposits and credit balances 406 403 1 1 105 IBF deposit liabilities 154,436 136,410 9,373 3,437 106 Individuals, partnerships, and corporations 13,166 8,525 518 85 107 U.S. addressees (domicile) 138 134 0 2 108 Non-U.S. addressees (domicile) 13,028 8,391 518 83 109 Commercial banks in United States (including IBFs) . 51,427 44,743 4,671 1,526 110 U.S. branches and agencies of other foreign banks . 45,124 39,222 4,158 1,305 111 Other commercial banks in United States n. a. 6,303 n.a. 5,521 n.a. 513 n.a. 221 112 Banks in foreign countries 79,264 72,884 4,066 1,809 113 Foreign branches of U.S. banks 7,469 6,217 732 447 114 Other banks in foreign countries 71,795 66,667 3,334 1,362 115 Foreign governments and official institutions (including foreign central banks) 10,436 10,116 111188 1188 116 All other deposits and credit balances 143 143 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • January 1989 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1988Continued Millions of dollars All states2 New York California Illinois IItteemm inc T I l B o u t F d a i s l n g o IB nl F y s 3 in T c I l B o u t F d a i s l n g o IB nl F y s 3 in T c I l B o u t F d a i s l n g o IB nl F y s 3 in T c I l B o u t F d a i s l n g o IB nl F y s 3 117 Federal funds purchased and securities sold under agreements to repurchase 54,221 2,005 39,926 1,415 9,865 326 3,749 94 118 U.S. branches and agencies of other foreign banks ... 11,039 446 7,697 134 2,496 197 726 40 119 Other commercial banks in United States 21,730 74 13,340 39 5,611 30 2,399 0 120 Other 21,452 1,485 18,889 1,242 1,758 99 624 54 121 Other borrowed money 99,122 36,648 55,058 15,395 35,132 18,123 6,347 2,138 122 Owed to nonrelated commercial banks in United States (including IBFs) 65,654 16,871 33,942 3,856 25,135 11,433 4,369 805 123 Owed to U.S. offices of nonrelated U.S. banks 29,832 2,727 18,649 715 7,880 1,646 2,550 60 124 Owed to U.S. branches and agencies of nonrelated foreign banks 35,823 14,144 15,293 3,141 17,254 9,787 1,819 745 125 Owed to nonrelated banks in foreign countries 18,512 17,843 10,167 9,653 6,691 6,675 1,386 1,300 126 Owed to foreign branches of nonrelated U.S. banks .. 2,769 2,650 1,031 985 1,427 1,426 217 147 127 Owed to foreign offices of nonrelated foreign banks... 15,743 15,193 9,136 8,669 5,264 5,248 1,169 1,153 128 Owed to others 14,955 1,934 10,950 1,886 3,306 15 591 33 129 All other liabilities 45,146 4,769 32,872 3,661 10,246 853 1,325 200 130 Branch or agency liability on acceptances executed and outstanding 32,730 n.a. 2222,,665566 n.a. 88,,773344 n.a. 884455 n.a. 131 Other liabilities to nonrelated parties 12,416 4,769 10,216 3,661 1,512 853 480 200 132 Net due to related depository institutions5 64,929 29,722 34,836 21,471 6,698 2,961 13,507 4,221 133 Net due to head office and other related depository institutions5 64,929 n.a. 34,836 n.a. 6,698 n.a. 13,507 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 29,722 n.a. 21,471 n.a. 2,961 n.a. 4,221 MEMO 135 Non-interest bearing balances with commercial banks in United States 2,052 10 1,817 10 110 0 63 0 136 Holding of commercial paper included in total loans .... 613 363 153 77 137 Hold a in n g d o in f d o u w st n ri a a l c c lo e a p n ta s n ces included in commercial 2,699 T 1,625 | 802 I | 144 f | 138 Commercial and industrial loans with remaining maturity 1 1 1 J of one year or less 64,109 36,500 11,835 9,599 139 Predetermined interest rates 41,270 n.a. 22,283 n.a. 8,435 n.a. 6,531 n.a. 140 Floating interest rates 22,838 14,217 3,400 3,068 141 Commercial and industrial loans with remaining maturity 1 1 1 of more than one year 53,945 37,069 9,441 4,673 142 Predetermined interest rates 17,388 1 11,129 1 3,889 1 1,810 1 143 Floating interest rates 36,557 t 25,940 T 5,552 T 2,864 t Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30—Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c IB l o u t F d a s i l n g o IB nl F y s 3 ex T c IB l o u F t d a s i l n g o IB nl F y s 3 ex T c IB l o u F t d a s i l n g o IB nl F y s 3 ex T c IB l o u t F d a s i l n g o IB nl F y s 3 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff t t t t nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 71,464 61,929 1,780 3,463 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 40,620 33,505 1,150 2,513 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee n.a. n.a. 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 9,546 n.a. 8,452 n.a. 513 1 428 I wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 1 1 11112222 mmmmoooonnnntttthhhhssss 21,298 19,973 118 522 All states2 New York California Illinois inc T IB l o u F t d a s i l n g o IB nl F y s 3 inc T IB l o u F t d a s i l n g o IB nl F y s 3 inc T IB l o u F t d a s i l n g o IB nl F y s 3 in T c IB l o u F t d a s i l n g o IB nl F y s 3 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 3322,,664444 9,111 2266,,330099 6,956 33,,990044 1,731 11,,229911 290 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 5577,,776699 n.a. 2299,,559977 n.a. 2233,,556644 n.a. 33,,005599 n.a. 551166 223355 112266 5522 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data are reported for that item, either because the item is not an "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign eligible IBF asset or liability or because that level of detail is not reported for Banks." Details may not add to totals because of rounding. This form was first IBFs. From December 1981 through September 1985, IBF data were included in used for reporting data as of June 30, 1980, and was revised as of December 31, all applicable items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FR 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G. 11, last issued on footnote 5). On the former monthly branch and agency report, available through July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefore, total asset and total liability figures in this table are not items. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985, data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 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. SLEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser DONALD B. ADAMS, Assistant Director LEGAL DIVISION PETER HOOPER III, Assistant Director KAREN H. JOHNSON, Assistant Director MICHAEL BRADFIELD, General Counsel RALPH W. SMITH, JR., Assistant Director J. VIRGIL MATTINGLY, JR., Deputy General Counsel RICHARD M. ASHTON, Associate General Counsel OLIVER IRELAND, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS RICKI R. TIGERT, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel MICHAEL J. PRELL, Director EDWARD C. ETTIN, Deputy Director THOMAS D. SIMPSON, Associate Director OFFICE OF THE SECRETARY LAWRENCE SLIFMAN, Associate Director MARTHA BETHEA, Deputy Associate Director PETER A. TINSLEY, Deputy Associate Director WILLIAM W. WILES, Secretary MYRON L. KWAST, Assistant Director BARBARA R. LOWREY, Associate Secretary SUSAN J. LEPPER, Assistant Director MARTHA S. SCANLON, Assistant Director DAVID J. STOCKTON, Assistant Director DIVISION OF CONSUMER JOYCE K. ZLCKLER, Assistant Director AND COMMUNITY AFFAIRS LEVON H. GARABEDIAN, Assistant Director (Administration) GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director DIVISION OF MONETARY AFFAIRS ELLEN MALAND, Assistant Director DOLORES S. SMITH, Assistant Director DONALD L. KOHN, Director DAVID E. LLNDSEY, Deputy Director BRIAN F. MADIGAN, Assistant Director DIVISION OF BANKING RICHARD D. PORTER, Assistant Director SUPERVISION AND REGULATION NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM TAYLOR, Staff Director DON E. KLINE, Associate Director OFFICE OF THE INSPECTOR GENERAL FREDERICK M. STRUBLE, Associate Director WILLIAM A. RYBACK, Deputy Associate Director BRENT L. BOWEN, Inspector General STEPHEN C. SCHEMERING, Deputy Associate Director 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. Suss AN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 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 C. WILLIAM SCHLEICHER, JR., Associate Director DAVID L. SHANNON, Director CHARLES W. BENNETT, Assistant Director JOHN R. WEIS, Associate Director JACK DENNIS, JR., Assistant Director ANTHONY V. DLGLOIA, Assistant Director EARL G. HAMILTON, Assistant Director JOSEPH H. HAYES, JR., Assistant Director JOHN H. PARRISH, Assistant Director FRED HOROWITZ, 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. RLGGS, 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

A84 Federal Reserve Bulletin • January 1989 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. LAWARE ROBERT P. FORRESTAL MANUEL H. JOHNSON ROBERT T. PARRY MARTHA R. SEGER ALTERNATE MEMBERS ROGER GUFFEY SILAS KEEHN JAMES H. OLTMAN THOMAS C. MELZER 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 B. KENNETH WEST, Seventh District WILLARD C. BUTCHER, Second District DONALD N. BRANDIN, Eighth District SAMUEL A. MCCULLOUGH, Third District LLOYD P. JOHNSON, JR., Ninth District THOMAS H. O'BRIEN, Fourth District JORDAN L. HAINES, Tenth District FREDERICK DEANE, JR., Fifth District JAMES E. BURT III, Eleventh District KENNETH L. ROBERTS, 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

A85 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

A86 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SER- FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; up- VICES, MS-138, Board of Governors of the Federal Reserve dated at least monthly. (Requests must be prepaid.) System, Washington, D.C. 20551 or telephone (202) 452- Consumer and Community Affairs Handbook. $75.00 per 3244. When a charge is indicated, payment should accom- year. pany request and be made payable to the Board of Governors Monetary Policy and Reserve Requirements Handbook. of the Federal Reserve System, and forwarded to Publica- $75.00 per year. tions Services, Board of Governors of the Federal Reserve Securities Credit Transactions Handbook. $75.00 per year. System, P.O. Box 27531, Richmond, VA 23261-7531. Pay- The Payment System Handbook. $75.00 per year. ment from foreign residents should be drawn on a U.S. bank. Federal Reserve Regulatory Service. 3 vols. (Contains all three Handbooks plus substantial additional material.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- $200.00 per year. TIONS. 1984. 120 pp. Rates for subscribers outside the United States are as ANNUAL REPORT. follows and include additional air mail costs: ANNUAL REPORT: BUDGET REVIEW, 1986-87. Federal Reserve Regulatory Service, $250.00 per year. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or Each Handbook, $90.00 per year. $2.00 each in the United States, its possessions, Canada, THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A and Mexico; 10 or more of same issue to one address, MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 $18.00 per year or $1.75 each. Elsewhere, $24.00 per each. year or $2.50 each. PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint SERVE SYSTEM. August 1985. 30 pp. of Part I only) 1976. 682 pp. $5.00. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. ANNUAL STATISTICAL DIGEST 440 pp. $9.00 each. 1974-78. 1980. 305 pp. $10.00 per copy. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. 1981. 1982. 239 pp. $ 6.50 per copy. December 1986. 264 pp. $10.00 each. 1982. 1983. 266 pp. $ 7.50 per copy. 1983. 1984. 264 pp. $11.50 per copy. 1984. 1985. 254 pp. $12.50 per copy. 1985. 1986. 231 pp. $15.00 per copy. 1986. 1987. 288 pp. $15.00 per copy. CONSUMER EDUCATION PAMPHLETS 1987. 1988. 272 pp. $15.00 per copy. Short pamphlets suitable for classroom use. Multiple copies HISTORICAL CHART BOOK. Issued annually in Sept. $1.25 are available without charge. each in the United States, its possessions, Canada, and Mexico; 10 or more to one address, $1.00 each. Elsewhere, $1.50 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- RIES OF CHARTS. Weekly. $24.00 per year or $.60 each in Consumer Handbook on Adjustable Rate Mortgages the United States, its possessions, Canada, and Mexico; Consumer Handbook to Credit Protection Laws 10 or more of same issue to one address, $22.50 per year Fair Credit Billing or $.55 each. Elsewhere, $30.00 per year or $.70 each. Federal Reserve Glossary THE FEDERAL RESERVE ACT, and other statutory provisions A Guide to Business Credit and the Equal Credit Opportunity affecting the Federal Reserve System, as amended Act through April 20, 1983, with Supplements covering Guide to Federal Reserve Regulations amendments through August 1987. 576 pp. $7.00. How to File A Consumer Credit Complaint REGULATIONS OF THE BOARD OF GOVERNORS OF THE If You Use A Credit Card FEDERAL RESERVE SYSTEM. Series on the Structure of the Federal Reserve System ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— The Board of Governors of the Federal Reserve System Regulation Z) Vol. I (Regular Transactions). 1969. 100 The Federal Open Market Committee pp. Vol. //(Irregular Transactions). 1969. 116 pp. Each Federal Reserve Bank Board of Directors volume $2.25; 10 or more of same volume to one Federal Reserve Banks address, $2.00 each. Organization and Advisory Committees INTRODUCTION TO FLOW OF FUNDS. 1980.68 pp. $1.50 each; A Consumer's Guide to Mortgage Lock-Ins 10 or more to one address, $1.25 each. A Consumer's Guide to Mortgage Closings PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. A Consumer's Guide to Mortgage Refinancing $13.50 each. Making Deposits: When Will Your Money Be Available? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 PAMPHLETS FOR FINANCIAL INSTITUTIONS VESTIGATION, by Bonnie E. Loopesko. November Short pamphlets on regulatory compliance, primarily suit- 1983. Out 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, GERvestment MANY, AND JAPAN, by Deborah J. Danker, Richard A. The Board of Directors' Role in Consumer Law Compliance Haas, Dale W. Henderson, Steven A. Symansky, and Ralph W. Tryon. April 1985. 27 pp. Out of print. Combined Construction/Permanent Loan Disclosure and 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. Rhoades. February 1984. Out of print. Regulation Z: The Right of Rescission The Right to Financial Privacy Act 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- Signature Rules in Community Property States: Regulation B LINES, AND THE LIMITS OF CONCENTRATION IN LOCAL Signature Rules: Regulation B BANKING MARKETS, by James Burke. June 1984.14 pp. Out of print. Timing Requirements for Adverse Action Notices: Regulation 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. Studies and papers on economic and financial subjects that 15 pp. Out of print. are of general interest. Requests to obtain single copies of 142. MERGERS AND ACQUISITIONS BY COMMERCIAL the full text or to be added to the mailing list for the series BANKS, 1960-83, by Stephen A. Rhoades. December may be sent to Publications Services. 1984. 30 pp. Out of print. 143. COMPLIANCE COSTS AND CONSUMER BENEFITS OF Staff Studies 115-125 are out of print. THE ELECTRONIC FUND TRANSFER ACT: RECENT SUR- VEY EVIDENCE, by Frederick J. Schroeder. April 1985. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- 23 pp. Out of print. DENCE ON COMPETITION AND PERFORMANCE IN 144. SCALE ECONOMIES IN COMPLIANCE COSTS FOR CON- BANKING MARKETS, by Timothy J. Curry and John T. SUMER CREDIT REGULATIONS: THE TRUTH IN LEND- Rose. Jan. 1982. 9 pp. ING AND EQUAL CREDIT OPPORTUNITY LAWS, by 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- Gregory E. Elliehausen and Robert D. Kurtz. May KET INTERVENTION, by Donald B. Adams and Dale W. 1985. 10 pp. Henderson. August 1983. 5 pp. Out of print. 145. SERVICE CHARGES AS A SOURCE OF BANK INCOME 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- AND THEIR IMPACT ON CONSUMERS, by Glenn B. VENTION: JANUARY-MARCH 1975, by Margaret L. Canner and Robert D. Kurtz. August 1985. 31 pp. Out Greene. August 1984. 16 pp. Out of print. of print. 128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF VENTION: SEPTEMBER 1977-DECEMBER 1979, by Mar- BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, garet L. Greene. October 1984. 40 pp. Out of print. by Thomas F. Brady. November 1985. 25 pp. 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) VENTION: OCTOBER 1980-OCTOBER 1981, by Margaret INDEXES OF THE MONETARY AGGREGATES, by Helen L. Greene. August 1984. 36 pp. T. Farr and Deborah Johnson. December 1985. 42 pp. 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTER- 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF NATIONAL TRADE AND OTHER ECONOMIC VARIABLES: THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- A REVIEW OF THE LITERATURE, by Victoria S. Farrell TION RESULTS, by Flint Brayton and Peter B. Clark. with Dean A. DeRosa and T. Ashby McCown. January December 1985. 17 pp. 1984. Out of print. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- IN BANKING BEFORE AND AFTER ACQUISITION, by DEUTSCHE MARK INTERVENTION, by Laurence R. Ja- Stephen A. Rhoades. April 1986. 32 pp. cobson. October 1983. 8 pp. 150. STATISTICAL COST ACCOUNTING MODELS IN BANK- 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- ING: A REEXAMINATION AND AN APPLICATION, by TWEEN EXCHANGE RATES AND INTERVENTION: A RE- John T. Rose and John D. Wolken. May 1986. 13 pp. VIEW OF THE TECHNIQUES AND LITERATURE, by Ken- 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT neth Rogoff. October 1983. 15 pp. PRICING FROM 1983 THROUGH 1985, by Patrick I. Ma- 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- honey, Alice P. White, Paul F. O'Brien, and Mary M. VENTION, AND INTEREST RATES: AN EMPIRICAL IN- McLaughlin. January 1987. 30 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Survey of Consumer Finances, 1983. 9/84. REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Bank Lending to Developing Countries. 10/84. April 1987. 18 pp. Survey of Consumer Finances, 1983: A Second Report. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and 12/84. Alice P. White. September 1987. 14 pp. Union Settlements and Aggregate Wage Behavior in the 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF 1980s. 12/84. PROPOSED CEILINGS ON CREDIT CARD INTEREST The Thrift Industry in Transition. 3/85. RATES, by Glenn B. Canner and James T. Fergus. A Revision of the Index of Industrial Production. 7/85. October 1987. 26 pp. Financial Innovation and Deregulation in Foreign Industrial 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Countries. 10/85. Warshawsky. November 1987. 25 pp. Recent Developments in the Bankers Acceptance Market. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANK- 1/86. ING MARKETS, by James V. Houpt. May 1988. 47 pp. The Use of Cash and Transaction Accounts by American Families. 2/86. Financial Characteristics of High-Income Families. 3/86. Prices, Profit Margins, and Exchange Rates. 6/86. REPRINTS OF BULLETIN ARTICLES Agricultural Banks under Stress. 7/86. Foreign Lending by Banks: A Guide to International and Most of the articles reprinted do not exceed 12 pages. U.S. Statistics. 10/86. Recent Developments in Corporate Finance. 11/86. Limit of 10 copies Measuring the Foreign-Exchange Value of the Dollar. 6/87. Foreign Experience with Targets for Money Growth. 10/83. Changes in Consumer Installment Debt: Evidence from the Intervention in Foreign Exchange Markets: A Summary of 1983 and 1986 Surveys of Consumer Finances. 10/87. Ten Staff Studies. 11/83. U.S. International Transactions in 1987. 5/88. A Financial Perspective on Agriculture. 1/84. Home Equity Lines of Credit. 6/88. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 Index to Statistical Tables References are to pages A3-A81 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20, 76 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 18-20 Turnover, 15 Domestic finance companies, 36 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, 78-81 Deposits (See also specific types) Automobiles Banks, by classes, 3, 18-20, 21 Consumer installment credit, 39, 40 Federal Reserve Banks, 4, 10 Production, 49, 50 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, 47 Rates 24 Eurodollars, 24 Branch banks, 21, 57, 82-85 Business activity, nonfinancial, 46 FARM mortgage loans, 38 Business expenditures on new plant and equipment, 35 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 own- CAPACITY utilization, 48 ership of gross debt, 30 Capital accounts Receipts and outlays, 28, 29 Banks, by classes, 18 Treasury financing of surplus, or deficit, 28 Federal Reserve Banks, 10 Treasury operating balance, 28 Central banks, discount rates, 69 Federal Financing Bank, 28, 33 Certificates of deposit, 24 Federal funds, 6, 17, 19, 20, 21, 24, 28 Commercial and industrial loans Federal Home Loan Banks, 33 Commercial banks, 16, 19, 72-74, 78-79 Federal Home Loan Mortgage Corporation, 33, 37, 38 Weekly reporting banks, 19-21 Federal Housing Administration, 33, 37, 38 Commercial banks Federal Land Banks, 38 Assets and liabilities, 18-20 Federal National Mortgage Association, 33, 37, 38 Commercial and industrial loans, 16, 18, 19, 20, 21, 72-74 Federal Reserve Banks Consumer loans held, by type, and terms, 39, 40 Condition statement, 10 Loans sold outright, 19 Discount rates (See Interest rates) Nondeposit funds, 17 U.S. government securities held, 4, 10, 11, 30 Real estate mortgages held, by holder and property, 38 Federal Reserve credit, 4, 5, 10, 11 Terms of lending, 72-77 Federal Reserve notes, 10 Time and savings deposits, 3 Federal Savings and Loan Insurance Corporation insured Commercial paper, 23, 24, 36 institutions, 26 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 33 Construction, 46, 51, 73 Finance companies Consumer installment credit, 39, 40 Assets and liabilities, 36 Consumer prices, 46, 48 Business credit, 36 Consumption expenditures, 53, 54 Loans, 39, 40 Corporations Paper, 23, 24 Nonfinancial, assets and liabilities, 35 Financial institutions Profits and their distribution, 35 Loans to, 19, 20, 21 Security issues, 34, 67 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 Credit unions, 26, 39. (See also Thrift institutions) Flow of funds, 41,43, 44, 45 Currency and coin, 18 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 21, 78-81 Customer credit, stock market, 25 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4, 10, 19, 20 Foreign exchange rates, 70 DEBITS to deposit accounts, 15 Foreign trade, 56 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 57, 59, 62, 63, 64, 66 Banks, by classes, 18-21 Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 GOLD Real estate loans—Continued Certificate account, 10 Financial institutions, 26 Stock, 4, 56 Terms, yields, and activity, 37 Government National Mortgage Association, 33, 37, 38 Type of holder and property mortgaged, 38 Gross national product, 53 Repurchase agreements, 6, 17, 19, 20, 21 Reserve requirements, 8 HOUSING, new and existing units, 51 Reserves Commercial banks, 18 INCOME, personal and national, 46, 53, 54 Depository institutions, 3, 4, 5, 12 Industrial production, 46, 49 Federal Reserve Banks, 10 Installment loans, 39, 40 U.S. reserve assets, 56 Insurance companies, 26, 30, 38 Residential mortgage loans, 37 Interest rates Retail credit and retail sales, 39, 40, 46 Bonds, 24 Commercial banks, 72-77 SAVING Consumer installment credit, 40 Flow of funds, 41, 43, 44, 45 Federal Reserve Banks, 7 National income accounts, 53 Foreign central banks and foreign countries, 69 Savings and loan associations, 26, 38, 39, 41. (See also Money and capital markets, 24 Thrift institutions) Mortgages, 37 Savings banks, 26, 38, 39 Prime rate, 23 Savings deposits (See Time and savings deposits) International capital transactions of United States, 55-69 Securities (See also specific types) International organizations, 59, 60, 62, 65, 66 Federal and federally sponsored credit agencies, 33 Inventories, 53 Foreign transactions, 67 Investment companies, issues and assets, 35 New issues, 34 Investments (See also specific types) Prices, 25 Banks, by classes, 18, 19, 20, 21, 26 Special drawing rights, 4, 10, 55, 56 Commercial banks, 3, 16, 18-20, 38 State and local governments Federal Reserve Banks, 10, 11 Deposits, 19, 20 Financial institutions, 26, 38 Holdings of U.S. government securities, 30 New security issues, 34 LABOR force, 47 Ownership of securities issued by, 19, 20, 26 Life insurance companies (See Insurance companies) Rates on securities, 24 Loans (See also specific types) Stock market, selected statistics, 25 Banks, by classes, 18-20 Stocks (See also Securities) Commercial banks, 3, 16, 18-20, 72-77 New issues, 34 Federal Reserve Banks, 4, 5, 7, 10, 11 Prices, 25 Financial institutions, 26, 38 Insured or guaranteed by United States, 37, 38 Student Loan Marketing Association, 33 MANUFACTURING Capacity utilization, 48 TAX receipts, federal, 29 Production, 48, 50 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, 56 Reserve requirements, 8 Treasury cash, Treasury currency, 4 Mining production, 50 Treasury deposits, 4, 10, 28 Mobile homes shipped, 51 Treasury operating balance, 28 Monetary and credit aggregates, 3, 12 UNEMPLOYMENT, 47 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, 53 Foreign and international holdings and transactions, 10, 30, 68 OPEN market transactions, 9 Open market transactions, 9 Outstanding, by type and holder, 26, 30 PERSONAL income, 54 Rates, 24 Prices U.S. international transactions, 55-69 Consumer and producer, 46, 52 Utilities, production, 50 Stock market, 25 Prime rate, 23 VETERANS Administration, 37, 38 Producer prices, 46, 52 Production, 46, 49 Profits, corporate, 35 WEEKLY reporting banks, 19-21 Wholesale (producer) prices, 46, 52 REAL estate loans Banks, by classes, 16, 19, 20, 38 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 George N. Hatsopoulos Richard F. Syron Richard N. Cooper Robert W. Eisenmenger NEW YORK* 10045 Cyrus R. Vance E. Gerald Corrigan Ellen V. Futter James H. Oltman Buffalo 14240 . Mary Ann Lambertsen John T. Keane PHILADELPHIA 19105 Peter A. Benoliel Edward G. Boehne Gunnar E. Sarsten William H. Stone, Jr. CLEVELAND* 44101 Charles W. Parry W. Lee Hoskins John R. Miller William H. Hendricks Cincinnati 45201 Owen B. Butler Charles A. Cerino1 Pittsburgh 15230 James E. Haas Harold J. Swart1 RICHMOND* 23219 Hanne M. Merriman Robert P. Black Leroy T. Canoles, Jr. Jimmie R. Monhollon Baltimore 21203 To be announced Robert D. McTeer, Jr.1 Charlotte 28230 To be announced Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Bradley Currey, Jr. Robert P. Forrestal Larry L. Prince Jack Guynn Delmar Harrison1 Birmingham 35283 To be announced Fred R. Herr1 Jacksonville 32231 To be announced James D. Hawkins1 Miami 33152 To be announced James Curry III Nashville 37203 To be announced Donald E. Nelson New Orleans 70161 To be announced 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 To be announced John F. Breen Louisville 40232 To be announced Howard Wells Memphis 38101 To ne announced Paul I. Black, Jr. MINNEAPOLIS 55480 Michael W. Wright Gary H. Stern John A. Rollwagen Thomas E. Gainor Helena 59601 To be announced Robert F. McNellis KANSAS CITY 64198 Fred W. Lyons, Jr. Roger Guffey To be announced 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 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith, III1 San Antonio 78295 To be announced Thomas H. Robertson SAN FRANCISCO 94120 Robert F. Erburu Robert T. Parry Carolyn S. Chambers Carl E. Powell John F. Hoover1 Los Angeles 90051 Yvonne B. Burke Thomas C. Warren2 Portland 97208 Paul E. Bragdon Angelo S. Carella1 Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett1 Seattle 98124 Carol A. Nygren Gerald R. Kelly1 •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 060%; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. 2. Executive Vice President. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories April 19*4 tt 11 // ALASKA // pp««ii##®®iiaaaaii>>ssffii«« // © i i l l i i l iM Ajo •Ss 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. A. Consumer's Guide to Mortgage Lock-Ins Fair Credit Billing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis