Federal Reserve Bulletin, 1989-07

VOLUME 75 • NUMBER 7 • JULY 1989 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn • J. Virgil Mattingly, Jr. • 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 461 RECENT DEVELOPMENTS IN THE ing, Finance and Urban Affairs, May 16, PROFITABILITY AND LENDING 1989. PRACTICES OF COMMERCIAL BANKS 495 H. Robert Heller, member, Board of Gov- Provisions for possible loan losses dropped ernors, presents the views of the Board on sharply last year, and commercial bank legislative proposals to limit the use of profitability rebounded. Domestic loan debrokered deposits by troubled federally inmand was strong; but in the context of sured financial institutions and says that tighter monetary policy and impending capalthough the Board supports reasonable efital guidelines, overall asset growth reforts to limit the use of brokered deposits, it mained moderate. also supports preserving their benefits, before the Subcommittee on General Oversight and Investigations of the House Com- 485 TREASURY AND FEDERAL RESERVE mittee on Banking, Finance and Urban FOREIGN EXCHANGE OPERATIONS Affairs, May 17, 1989. On balance over the three-month period 498 Glenn E. Loney, Assistant Director, Divifrom February through April 1989, the dolsion of Consumer and Community Affairs, lar rose lA percent against the German mark discusses the Federal Reserve System's enand Canadian dollar, 2VA percent against the forcement of the mandatory flood insurance Japanese yen, 4 percent against the British purchase requirements for mortgages sepound, and 5 percent against the Swiss cured by improved real estate and for manfranc. The dollar ended the period 1 percent ufactured homes located in designated flood higher on a trade-weighted basis as meahazard areas; he says that the System over sured by the staff of the Board of Goverthe years has stressed the importance of nors. complying with the flood insurance requirements and few violations have been noted 491 INDUSTRIAL PRODUCTION during examinations, before the Subcommittee on Policy Research and Insurance of Industrial production increased 0.4 percent the House Committee on Banking, Finance in April after having been unchanged in and Urban Affairs, May 31, 1989. March. 502 RECORD OF POLICY ACTIONS OF THE 493 STATEMENTS TO CONGRESS FEDERAL OPEN MARKET COMMITTEE Martha R. Seger, member, Board of Gov- At its meeting on March 28, 1989, the ernors, offers the comments of the Board on Committee adopted a directive that called H.R. 736, the "Truth in Savings Act," and for maintaining the current degree of pressays that although the legislation is consis- sure on reserve positions and that provided tent with the Board's objectives, the com- for giving particular weight to potential deplex rules that the act requires will increase velopments that might require some firming an already heavy regulatory burden, before during the intermeeting period. Accordthe Subcommittee on Consumer Affairs and ingly, some added reserve restraint would Coinage of the House Committee on Bank- be acceptable, or some slight lessening of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

reserve pressure might be acceptable, over Ai FINANCIAL AND BUSINESS STATISTICS the intermeeting period, depending on indi- These tables reflect data available as of cations of inflationary pressures, the May 26, 1989. strength of the business expansion, the behavior of the monetary aggregates, and A3 Domestic Financial Statistics developments in foreign exchange and A46 Domestic Nonfinancial Statistics domestic financial markets. The reserve A55 International Statistics conditions contemplated by the Committee were expected to be consistent with growth A71 GUIDE TO TABULAR PRESENTATION, of M2 and M3 at annual rates of around 3 STATISTICAL RELEASES, AND SPECIAL percent and 5 percent respectively over the TABLES three-month period from March to June. It was understood that operations would con- A72 BOARD OF GOVERNORS AND STAFF tinue to be conducted with some flexibility in light of the persisting uncertainty in the A74 FEDERAL OPEN MARKET COMMITTEE relationship between the demand for bor- AND STAFF; ADVISORY COUNCILS rowed reserves and the federal funds rate. A76 FEDERAL RESERVE BOARD 508 ANNOUNCEMENTS PUBLICATIONS Revisions to money stock data. A78 INDEX TO STATISTICAL TABLES Hearing scheduled on application by a bank holding company to engage in armored car A80 FEDERAL RESERVE BANKS, activities. BRANCHES, AND OFFICES 513 LEGAL DEVELOPMENTS A8i MAP OF FEDERAL RESERVE SYSTEM Various bank holding company, bank service corporation, and bank merger orders; and pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks Martin H. Wolfs on and Mary M. McLaughlin, of Short-term interest rates rose steadily throughthe Board's Division of Monetary Affairs, pre- out most of last year as the Federal Reserve took pared this article. Douglas Carpenter and steps to restrain inflation (chart 3). With the Vernon McKinley provided research assistance. demand for bank credit generally strong and its cost rising, the rate of return on banks' loan The profitability of U.S.-chartered insured com- portfolios rose significantly. In contrast, rates mercial banks recovered in 1988, after a year of paid on many retail deposits at commercial banks record low earnings. Large banks registered the adjusted only partially to the increases in market sharpest turnaround; their rates of profitability rates. As a result, the spread between interest were the highest in many years after huge losses income and interest expense (net interest margin) in 1987. At all commercial banks, the lowest level widened (table 1). of loss provisions in five years, in conjunction Despite strong domestic demand for loans, with higher net interest income, contributed to a overall asset growth of U.S. banks remained return on assets of 0.84 percent, the highest in moderate last year. Acquisitions of securities two decades (chart 1). The return on equity slowed, in part to accommodate higher domestic increased sharply to 13.52 percent. This strong loan growth in the context of tighter monetary performance allowed banks to pay dividends to policy and in part as a result of the continued shareholders that were generous by historical runoff of tax-exempt securities following the 1986 standards, while still increasing their equity cap- tax law change. Foreign loans declined as large ital ratios somewhat. Banks chose to provision at banks reduced their exposure to developing a lower level last year, even though charge-offs countries by recognizing losses and slowing new increased, particularly on foreign loans. Net loan growth. Partly to improve capital ratios, charge-offs in fact exceeded provisions, and con- money center banks reduced their assets by sequently, banks ended 1988 with loss reserves stepping up loan sales and striving to pare back down from a year earlier (chart 2). holdings of narrow-margin assets. 2. Reserves for loan losses, loss provisions, and net loan losses 1. Net income and loss provisions as a percent of assets Percent of loans Percent ' V—1.0 Net inrnmp . Loss provisionsy"" / 5 1978 1980 1982 1984 1986 1988 T T" 1 1 1 1 1 1 1 1 II 1 M il 1 1 1970 1975 1980 1985 1988 Annual data. The denominator for reserves for loan losses, a stock, is total loans outstanding at year-end. Loss provisions and net loan Annual data. losses are flows; their denominator is average loans for the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 Federal Reserve Bulletin • July 1989 3. Selected market and commercial bank 1. Income and expense as a percent of average net interest rates assets, all insured commercial banks,1,2 Percent Item 1984 1985 1986 1987 1988 Selected market rates Gross interest income 10.33 9.58 8.50 8.34 8.95 — 15 Gross interest expense 6.98 6.08 5.11 4.95 5.42 Net interest margin 3.35 3.50 3.39 3.40 3.53 Primary conventional mortgages Noninterest income 1.09 1.20 1.28 1.41 1.47 10 Loss provision .57 .68 .78 1.27 .54 Other noninterest expense.. 3.04 3.17 3.22 3.30 3.33 Securities gains (losses) -.01 .06 .14 .05 .01 A-rated utility bonds Federal funds 5 Income before taxes .83 .90 .80 .28 1.14 Recently offered Taxes3 .19 .21 .19 .18 .33 Extraordinary items .01 .01 .01 .01 .03 Net income .64 .70 .62 .11 .84 Cash dividends declared.. .32 .33 .33 .36 .44 Measures of the cost of short-term business credit Net retained earnings .32 .37 .29 -.24 .40 15 MEMO Net interest margin, taxable equivalent4 3.71 3.88 3.79 3.61 3.78 Prime-based loans „ — —' 1. Assets are fully consolidated and net of loss reserves. 2. In 1984, data are based on averages for call dates at the beginning and end of the year only. After 1984, data are based on averages of the One-month commercial paper call date in December of the preceding year and all four call dates in Investment-yield basis the current year. 3. Includes all taxes estimated to be due on income, extraordinary gains, and security gains. 4. For each bank with profits before taxes greater than zero, Retail deposit rates at commercial banks income from tax-exempt state and local obligations was increased by [//(l - f)J times the lesser of profits before tax or interest earned on MMDAs 10 tax-exempt obligations (t is the marginal federal income tax rate). This adjustment approximates the equivalent pretax return on tax-exempt Six-month small time deposits obligations. NOWs BALANCE SHEET DEVELOPMENTS 1986 1987 1988 1989 Interest-Bearing Assets Rates on prime-based and on market-based loans (shown in the middle panel) are quarterly; all other rates are monthly. Expansion of bank credit increased slightly last In their funding strategy last year, banks relied year, as a marked slowdown in the acquisition of heavily on both large and small time deposits. In securities offset an acceleration in the growth of contrast to other retail deposits, interest rates loans. All size groups of banks registered strong paid on small time deposits generally kept pace loan growth except for money center banks, at with rising market rates, and the rate of growth of which loan volume contracted. The fastestthese deposits picked up sharply. In the category growing component of bank credit was real esof managed liabilities, a strong advance in large tate loans. Domestic business loans registered a time deposits reflected in part a shift of funding sharp increase in their growth rate, while foreign sources from foreign office deposits, which de- business loans contracted. Growth of U.S. govclined. ernment securities slowed while municipal secu- A record 198 commercial banks insured by the rities ran off. At large banks, holdings of total Federal Deposit Insurance Corporation failed securities shrank. Several very large banks that last year. As in 1987, the majority of the nation's act as primary dealers of government securities failed banks were located in the Southwest, registered declines in their security holdings bewhere real estate losses remained high. On the cause their parent holding companies spun off other hand, the farm economy continued to im- their dealer departments into nonbank subsidiarprove last year, despite the drought, and the ies. These subsidiaries were formed to engage in profitability of agricultural banks exceeded that newly authorized activities, including underwritof the banking system as a whole. ing securities such as commercial paper, bonds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 463 secured by one- to four-family mortgages, and because nonfinancial corporations focused their municipal bonds. credit demands last year on short-term markets, Awareness of the new risk-based capital guide- despite the considerable increase in the level of lines, due to go into effect in a transitional stage short-term interest rates. Other short-term nonin 1990 and to take full effect in 1992, probably financial corporate debt instruments expanded was an important influence on banks' portfolio even more strongly last year. Commercial paper decisions in 1988. The new guidelines rank asset growth accelerated to 18 percent and C&I loans categories by credit risk and require that banks to U.S. residents made by U.S. branches and have capital equal to 7.25 percent of risk- agencies of foreign banks advanced almost 17 weighted assets by the end of 1990 and 8 percent percent. Firms apparently chose to postpone by year-end 1992. In addition, half of the capital longer-term issues in the expectation that lower requirement must be met with "core" capital, credit costs were on the horizon. Also, investors defined as common equity, retained earnings, began to shun corporate investment-grade bonds and perpetual preferred stock. after the announcement late last year of the RJR Nabisco leveraged buyout. Fears developed that Commercial and Industrial (C&I) Loans. C&I the value of such debt could decline if the issuing loans made by U.S. commercial banks to domes- firms became takeover targets—so-called event tic borrowers expanded nearly 7 percent in 1988, risk. up strongly from the weak pace in 1987 (table 2). The faster growth of domestic C&I loans re- The pickup in domestic business loan demand sulted mainly from expansion at banks with was associated with an increase in the gap be- assets of more than $5 billion other than money tween capital expenditures and internal funds of center banks, although C&I loan growth innonfinancial corporations, a typical development creased at smaller banks as well. At money as a business cycle progresses, and with contin- center banks, the volume of business loans conued strong credit demands associated with acqui- tracted in 1988, as it typically has in recent years. sitions, mergers, and other corporate restructur- Partly as a result of loan sales, C&I loans at these ings. Business loan demand also accelerated banks have fallen from 32 percent of average 2. Annual growth rate of selected balance sheet items, all insured commercial banks1 Percent, except as noted Outstanding, Dec. 31, 1988 Balance sheet item 1984 1985 1986 1987 1988 (billions of dollars) Interest-earning assets 8.6 9.3 8.0 3.9 4.1 2,694 Loans 16.1 7.6 7.6 4.2 6.1 1,879 Commercial and industrial loans 9.2 1.8 4.0 -1.2 2.5 595 U.S. addressees n.a. 5.9 9.6 .8 6.9 512 Other n.a. -6.2 -12.1 -5.5 -14.0 83 Consumer 17.9 14.2 7.3 3.3 6.3 354 Real estate 14.8 13.1 17.7 16.6 13.8 659 Foreign government 1.4 -3.8 -.3 -.2 -9.7 35 Agricultural 1.6 -10.0 -11.1 -6.2 3.2 30 Security loans 13.7 21.5 -22.2 -11.2 -.4 16 Securities -8.3 13.9 10.2 7.2 1.9 514 U.S. government -2.0 2.5 17.3 10.0 5.0 321 State and local n.a. 32.9 -12.6 -13.7 -12.0 104 Deposits 6.6 7.7 7.8 2.3 4.2 2,359 Foreign office 3.0 1.2 -2.7 8.8 -7.8 312 Domestic office 7.3 9.0 9.7 1.4 6.3 2,047 Demand 6.6 8.9 13.6 -10.3 1.4 451 Other checkable deposits n.a. 17.8 33.4 8.3 8.1 199 Savings (includes MMDAs) n.a. 16.6 17.5 -.9 1.3 526 Small time n.a. 3.4 -1.1 7.6 14.6 522 Large time 8.6 2.0 -1.5 13.0 8.9 316 Other liabilities for borrowed money 39.9 36.1 13.4 10.3 14.0 152 1. Growth rates calculated on an end-of-year to end-of-year basis. n.a. Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 Federal Reserve Bulletin • July 1989 3. Loans made at rates below prime as a percent of 4. Volume of overnight loans and the spread of the total short-term business loans at large banks overnight loan rate over the federal funds rate Item 1984 1985 1986 1987 1988 Item 1984 1985 1986 1987 1988 Total 888000...666 888555...222 888222...888 777222...666 666777...777 Volume (billions of dollars)... 18.1 15.2 16.6 14.4 13.2 Spread (basis points) 50 52 46 62 58 Excluding overnight loans 777666...444 777222...666 666999...777 555999...444 555444...666 Excluding loans with a maturity of Average loans extended over four survey weeks of each year. a month or less 555777...999 555222...111 555333...222 444666...555 444333...333 SOURCE. Survey of Terms of Bank Lending. mmmfffjjj^^^MMMMMM^^^MMM^^^^^^------»»»»»» MEMO: Prevailing prime rate less t p h a e p e o r n e ra -m te o ( n b t a h s i c s o p m o m in e ts r ) c ial 111999999 111999444 111777555 111555888 111666777 (LPS),1 the leading sellers of C&I loans are the money center banks, although other large banks Short-term loans are those with maturities of less than one year. are becoming increasingly important participants SOURCE. Survey of Terms of Bank Lending. in this market. About 80 percent of C&I loans sold by LPS respondents are purchased by other assets in 1984 to 23 percent last year. This trend banks—presumably those with lower costs of also reflects the continuing ability of money capital or cheaper deposits, as well as banks center banks' most creditworthy business borwishing to diversify their portfolios or banks rowers to go directly to the money and capital whose total production costs for these loans markets for funds. Many of these borrowers have exceed the purchase price. Particularly imporbetter credit ratings than most of the money tant purchasers have been domestic branches center banks. Capital pressures, which have and agencies of foreign banks. Nonbank purchascaused money center banks to deemphasize narers include nonfinancial corporations, life insurrow-margin loans, also have contributed to their ance companies, and thrift institutions. runoff of C&I loans. Data from the Federal About 43 percent of loan sales at LPS respon- Reserve's Survey of Terms of Bank Lending dents in 1988 involved merger-related loans. Alillustrate this development. Over the period from though large banks have been active in selling 1985 through 1988, the percentage of gross busimerger credits, these institutions also hold conness loan extensions made by large banks at rates siderable amounts of merger-related loans in below prime has declined (table 3). Loans made their own portfolios. As of December 31, 1988, at rates below prime typically are priced at rather merger-related loans—defined to include loans narrow spreads over funding costs. made to finance leveraged buyouts (LBOs), other Overnight loans provide a good example of this mergers and acquisitions, and defensive or other type of lending. These loans tend to be made in financial restructurings—accounted for about very large denominations, on the order of $5 1IV2 percent of LPS respondents' C&I loan portmillion to $20 million. Among other purposes, folios, down from \53A percent a year earlier. they are used by firms to facilitate a delay in About 80 percent of these loans were made to issuing commercial paper or bonds in the expecfinance LBOs. Such loans frequently have quite tation of improving market conditions. Banks attractive yields (prime plus IV2 percentage have raised the cost of these loans relative to the points or LIBOR plus 2Vi percentage points federal funds rate in the past couple of years represent typical terms). To date, the losses on (table 4), and the amount of overnight loans on these loans have been low, and thus they apparbanks' balance sheets has declined. ently have worked to boost banks' net interest These developments notwithstanding, money income and profitability. Moreover, large upfront center banks continue to be heavily involved in and commitment fees, particularly for lead the C&I loan business. By selling loans without banks, have contributed to noninterest income. recourse, these banks have been able to exploit their well-developed capabilities of originating loans and to generate fee income without increasing required capital. According to the general 1. The LPS provides the Board with information on evolvpattern revealed by the Senior Loan Officer ing lending practices of 60 large domestically chartered banks, including the money center banks. The appendix Opinion Survey of Bank Lending Practices describes this survey in more detail. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 465 The loan sales market has grown rapidly in loans in 1988 climbed to more than 20 percent of recent years, with the outstanding dollar volume commercial bank assets, edging out C&I loans as of loans sold by LPS respondents rising almost banks' largest single loan category. Although real 40 percent in the 15 months ending with June estate loans are relatively more important at 1988, to $53 billion. When this market began smaller banks, all size groups of banks have several years ago, it consisted predominantly of shared in this growth. Indeed, even at money loans made to investment-grade borrowers; as it center banks, real estate loans accounted for has grown and matured, however, an increasing nearly 14 percent of assets last year, up from less share of loans sold have been those made to than 10 percent in 1984. non-investment-grade borrowers. For banks of all sizes, the largest category of In addition to loan sales, banks have expanded real estate loans outstanding is that secured by their involvement in several other types of off- one- to four-family residences. Expansion of this balance-sheet activities such as loan commit- component last year included an increase of 37 ments, interest rate swaps, and foreign-exchange percent in revolving home equity loans. This trading. Reflecting growth of these activities, debt instrument has become much more popular noninterest income of commercial banks rose to in response to a provision of the Tax Reform Act 1.47 percent of average consolidated assets last of 1986 that phased out the tax deductibility of year, up from 1.41 percent the year before. Since household interest payments for nonmortgage 1984, noninterest income at all banks relative to debt. Even at very large banks, where businessassets has risen 38 basis points. Of course, these oriented mortgages (such as those for construcactivities add to costs, but noninterest expense tion and land development and those secured by (other than loss provisions) has risen less in nonfarm nonresidential properties) rival home recent years, up 29 basis points over the same mortgages in importance, growth of home equity period, measured as a percentage of assets. loans was strong last year. Loan commitments constitute one of the High vacancy rates and other difficulties expemost important types of off-balance-sheet activ- rienced recently in the commercial real estate ity. The predominant form of loan commitment market have slowed the growth of the nonfarm for C&I loans is the revolving line of credit. nonresidential component of real estate loans, According to the LPS survey, business borrow- especially in areas of the Southwest where the ers prefer formal revolving loan commitments energy industry is important. For banks in to other lending arrangements for several rea- Texas, Oklahoma, and Louisiana, real estate sons. These include convenience, minimization loans dropped 4 percent overall in 1988, with of loan arrangement costs, and access to credit major declines in the commercial area. Net at a predetermined spread over reference rates. charge-offs of real estate loans accounted for a This assured access can be advantageous in considerable part of this decline. Problems with case of a general credit tightening or a deterio- real estate loans, including the necessity for ration in the borrower's creditworthiness. larger loss provisions and interest lost from non- Banks often protect themselves against this performing assets, contributed to the poor profit latter event, however, by including in loan performance of these banks. In the northeastern commitments "material adverse change" United States, where the volume of real estate clauses that allow them to void a commitment if construction has been well above average for a borrower's credit condition deteriorates be- several years, concerns have developed about yond limits specified in the commitment con- overbuilding. tract. The growth of real estate loans secured by farmland slowed last year, likely owing to im- Real Estate Loans. Although growth of real provements in the agricultural economy. In periestate loans decelerated a bit in 1988, these loans ods of stress, such as the mid-1980s, farm proincreased faster than any other major component duction loans often are collateralized by farm of bank credit, as they have for the past five real estate, causing loans secured by farmland to years. As a result of this rapid growth, real estate expand while damping the growth of unsecured Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 Federal Reserve Bulletin • July 1989 loans for agricultural production and other loans Regional banks charged off $ 1.9 billion of loans to farmers. to foreign governments and also allowed their loans outstanding to drop an additional $1.4 Consumer Loans. Growth of loans to individ- billion. In contrast, $1.3 billion in charge-offs at uals picked up in 1988, but remained moderate. money center banks was offset by $1.4 billion in Demand for consumer loans has slowed in recent new lending. At both groups of banks a relatively years because of burgeoning home equity loans, small share of the decline in foreign business the proceeds of which frequently are used to pay loans was due to charge-offs. down more expensive credit card and consumer installment loans. Consumer loan growth also Security Loans. The volume outstanding of was held down last year by the securitization of these loans, extended mainly to brokers and consumer receivables by several very large dealers, was little changed last year after two banks. This development boosted noninterest years of considerable declines. The market for income and contributed to the contraction of security loans is dominated by money center consumer loans at money center banks last year. banks. These banks apparently have chosen to deemphasize this type of credit, perhaps be- Loans to Foreign Addressees. Both loans to cause of its relatively low rate of return. As foreign governments and business loans to non- with C&I loans, large banks are in the practice U.S. addressees contracted substantially last of selling some of the security loans they have year.2 These two categories, especially loans to originated. foreign governments, contain many of the loans made to developing countries. Such loans are Agricultural Loans. With some improvement made almost exclusively by large banks. These in the farm economy, the three-year decline in banks, particularly regional banks, made a con- the volume of farm borrowing from banks halted certed effort last year to reduce their exposure to in 1988. Total loans to farmers (unsecured proheavily indebted developing countries. The pri- duction loans plus loans secured by farmland) mary methods used were secondary market rose slightly, both on average and for all sizes of sales, debt exchanges (such as Mexico's ex- banks. This development had particular implicachange of some of its debt for new bonds backed tions for the smallest banks, where agricultural by U.S. Treasury zero-coupon bonds), and pre- credit represents a substantial 10 percent of their payments (with reductions) of debt by private- portfolio and where more than 70 percent of all sector borrowers. All of these methods have loans to farmers are booked. In 1988, agricultural required that banks recognize a loss on their banks charged off loans at only three-fourths the loans outstanding. national rate, an improvement over the preceding At large regional banks, loans to foreign gov- few years, and their nonperforming assets repreernments fell 26 percent and C&I loans to foreign sented a smaller portion of their total loans than addressees declined almost 19 percent last year. that for the industry as a whole. At money center banks, loans to foreign govern- Farm debt at all lenders has declined almost ments were about unchanged, while foreign C&I 25 percent since the early 1980s. Difficulty in loans declined 12.8 percent. For the most part, servicing debt incurred earlier to expand real loans to developing countries represent a smaller estate holdings and changes in federal farm share of regional banks' total assets than is the subsidy programs resulted in a lower level of case for the money center banks. Thus, regional agricultural loan extensions. Charge-offs by banks have been able to write off or otherwise several farm lenders, especially around midreduce their holdings of these loans with less decade, further reduced the stock of such loans. capital erosion. Because banks' portfolios were affected by these developments less than those of other agricultural lenders, banks' share of all agricultural credit has risen to 30 percent, more than 2. Loans to foreign banks (not shown separately in table 2) any other lender. also declined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 467 5. Loan losses and recoveries, all insured commercial banks Millions of dollars, except as noted Net charge-offs YYeeaarr aanndd ssiizzee ooff bbaannkk11 LLooaann lloosssseess RReeccoovveerriieess LLoossss pprroovviissiioonnss Percent of Amount average loans2 1988 All banks 21,742 4,024 17,718 .97 15,825 Less than $300 million 3,545 779 2,766 .78 3,280 $300 million to $5 billion 55,,226600 898 44,,336622 .85 44,,886644 $5 billion or more Money center banks 4,589 1,107 3,482 .90 2,324 Others 8,348 1,240 7,108 1.25 5,358 1987 All banks 19,674 3,627 16,047 .92 36,457 Less than $300 million 4,430 847 3,583 1.00 4,230 $300 million to $5 billion 55,,229988 840 44,,445588 .88 66,,227788 $5 billion or more Money center banks 4,120 1,024 3,096 .79 14,012 Other 5,826 916 4,910 1.00 11,937 1. Size categories are based on fully consolidated assets at year-end. 2. See table 1, note 2. Securities. Commercial banks' security hold- Trading account assets grew 8% percent last ings were up slightly last year. Securities issued year. Three-fourths of these assets are held by by states and political subdivisions in the United the money center banks. These very large banks States ran off, as they have since passage of the realized larger trading gains and fees, relative to Tax Reform Act of 1986. A provision of that act total assets, than other banks did on average. disallowed the deduction from taxable income of They also earned sharply higher interest income 80 percent of the interest costs of funding most on these assets than other banks did. tax-exempt obligations acquired after August 7, 1986. In anticipation of that date, many banks, Asset Quality particularly larger ones, had acquired a considerable volume of long-term grandfathered instru- The overall charge-off rate resumed its upward ments, which are likely to be running off well into climb last year, after falling somewhat in 1987. the next decade. Partly as a result of this development, nonper- Growth of U.S. government securities slowed forming assets reported by banks declined as a to 5 percent last year, well under the pace of the percentage of the loan portfolio. past two years, as large regional banks ran off In the aggregate, banks charged off 0.97 perthese liquid instruments and their growth at cent of their loan portfolio last year, up from 0.92 money center banks fell by half. Banks' holdings percent the year earlier (table 5). Banks with of U.S. government-issued or guaranteed certif- assets of more than $5 billion were responsible icates of participation in pools of residential for the increase. In particular, large banks other mortgages increased 22 percent in 1988, about than money center banks reported a ratio of net half the rate of the preceding two years.3 Growth charge-offs to loans of 1.25 percent, up sharply of this instrument was strong at all size groups of from 1.00 percent in 1987. As noted earlier, banks. These large increases in holdings of mort- charge-offs of loans to developing countries were gage-backed securities, along with continued an important factor contributing to the increase. strong real estate lending, underscore the ex- Detailed data on charge-offs net of recoveries by panded role for commercial banks in real estate type of loan are available for banks with assets of markets. more than $300 million (table 6). Small improvements in 1988 were reported in several areas: domestic business loans, loans to consumers, and real 3. Holdings of mortgage pools issued or guaranteed by the estate loans. (The overall figure for real estate U.S. government exceed private mortgage pools in banks' charge-offs, however, is an aggregate of relatively portfolios by more than 20 to 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 Federal Reserve Bulletin • July 1989 6. Net charge-offs, by type of loan, insured total of nonaccrual loans plus other real estate commercial banks with assets of more than owned (OREO)—mostly foreclosed real estate— $300 million or with foreign offices also registered improvement over 1987. Real estate Percent of average total loans loans on nonaccrual status were about unchanged; at large banks other than money center banks, Item 1985 1986 1987 1988 however, they increased sharply. Total loans .75 .89 .91 1.03 Banks are not required to report data on nonper- Commercial and industrial . 1.02 1.14 .96 .95 forming loans to foreign governments; they do, U.S. addressees .94 1.10 .86 .82 Foreign addressees 1.25 1.29 1.35 1.55 however, report such information for three other categories of foreign loans. Of these, the largest by Consumer 1.24 1.58 1.58 1.52 Credit-card 2.57 3.28 3.26 3.08 far is foreign business loans. A significant propor- Installment .63 .75 .74 .73 tion of these loans did not accrue interest last year. Real estate .22 .38 .47 .42 At money center banks, foreign business loans on Foreign government .84 .47 2.58 9.35 nonaccrual status increased in 1988, in contrast to all Depository institutions1 .15 .36 .56 .98 U.S. banks .12 .33 .11 .15 other banks reporting these data, where the propor- Foreign banks .15 .36 .96 1.83 tion of such loans on nonaccrual status declined 1. Includes acceptances of other banks. sharply. high losses on commercial real estate and relatively low losses on one- to four-family residential proper- Liabilities ties.) Significant increases were reported in chargeoffs of foreign loans: foreign business loans, loans to Growth of commercial bank deposits advanced foreign banks, and especially, loans to foreign gov- last year despite declines at foreign offices (table ernments. 2). At domestic offices, deposits accelerated With some of their most troubled loans charged strongly. This pickup stemmed partly from a off, the reported quality of commercial banks' non- small expansion in demand deposits after a major performing assets improved in 1988 (table 7). For all contraction in 1987. Growth of small time deposbanks, the proportion of loans either past due or not its nearly doubled last year. Their yields reaccruing interest fell somewhat, to 4.65 percent. The sponded relatively promptly to increases in mar- 7. Nonperforming assets, all insured commercial banks Percent of total loans outstanding, except as noted Nonaccrual loans TTTToooottttaaaallll Selected components2 nnnnoooonnnnaaaaccccccccrrrruuuuaaaallll YYYYeeeeaaaarrrr aaaannnndddd ssssiiiizzzzeeee ooooffff bbbbaaaannnnkkkk1111 PPPPaaaasssstttt dddduuuueeee llllooooaaaannnnssss pppplllluuuussss ooootttthhhheeeerrrr rrrreeeeaaaallll TTToootttaaalll Commercial and industrial eeeessssttttaaaatttteeee RReeaall eessttaattee oooowwwwnnnneeeedddd3333 Foreign Domestic 1988 All banks 2.14 2.51 1.92 n.a. n.a. 3.08 Less than $300 million 2.70 1.44 1.38 n.a. n.a. 2.56 $300 million to $5 billion 2.13 1.45 1.88 8.70 1.73 2.08 $5 billion or more Money center banks 1.60 5.60 2.25 10.06 3.34 5.90 Other 2.16 2.14 2.35 6.56 1.60 2.50 1987 All banks 2.18 2.86 1.94 n.a. n.a. 3.41 Less than $300 million 2.91 1.60 1.48 n.a. n.a. 2.70 $300 million to $5 billion 2.16 1.56 1.83 13.96 1.86 2.13 $5 billion or more Money center banks 1.48 5.85 2.70 9.16 4.61 6.16 Other 2.23 2.69 2.13 12.16 2.28 3.05 1. See table 5, note 1. 3. As a percent of total loans outstanding plus other real estate owned, 2. As a percent of total loans in that category n.a. Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 469 8. Profit rates, all insured commercial banks Percent Type of return and size of bank1 1984 1985 1986 1987 1988 Return on assets2,3 All banks .64 .70 .62 .11 .84 Less than $300 million .83 .74 .58 .63 .74 $300 million to $5 billion .81 .83 .76 .58 .76 $5 billion or more Money center banks .52 .45 .46 -.86 1.06 Others .34 .74 .68 -.02 .82 Return on equity3-4 All banks 10.59 11.18 9.97 1.80 13.52 Less than $300 million 10.40 9.19 7.21 7.76 8.89 $300 million to $5 billion 13.03 12.83 11.52 8.79 11.39 $5 billion or more Money center banks 11.42 9.60 9.50 -19.46 23.40 Others 6.58 13.56 12.18 -.28 15.16 MEMO: Return on assets Agricultural banks .71 .51 .44 .68 .90 Banks in Texas, Oklahoma and Louisiana .65 .43 -.47 -.86 -.96 1. See table 5, note 1. 3. See table 1, note 2. 2. Net income as a percent of average fully consolidated assets net 4. Net income as a percent of average equity capital. of loss reserves. ket rates, likely drawing in funds from more any recent profitable year and well above the liquid deposit categories for which deposit rates previous peak, reached in the early 1970s. Other tend to be more sluggish. Nevertheless, retail large banks registered a return on assets that was liquid deposits grew a bit over the moderate pace about even with that for the industry as a whole of 1987. Retail deposits at commercial banks may (table 8). At money center banks, loss provisions have been augmented last year by funds that relative to assets were at their lowest level since were withdrawn or diverted from thrift institutions. Thrift institutions historically have offered higher deposit rates than banks. Last year, how- 4. Loss provisions, by size of bank ever, this premium narrowed, in part due to Percent of average assets pressure by regulators. Depositor reaction to the relative decline in the overall attractiveness of thrift deposits, perhaps along with increased concern late in the year about the financial condition of these institutions, probably reduced their deposit growth and led to higher growth at banks. TRENDS IN PROFITABILITY Commercial banks of all sizes enjoyed improved profitability last year, although large banks did best and sectoral differences remained.4 At the money center banks, a return on assets of 1.06 percent was about double their performance in 4. The profitability picture is less improved when examined from the perspective of the National Income and Product Accounts. This accounting system reduces net income by the amount of net charge-offs rather than by the amount of loss provisions. Annual data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 Federal Reserve Bulletin • July 1989 1983; at other large banks, this ratio was lower Brazil of a refinancing plan late last year that last year than at any time since 1984 (chart 4). brought current the interest on its loans with At money center banks, about 60 percent of U.S. banks.5 The wider interest rate margin at loss provisions in 1988 were attributable to inter- the money center banks also is consistent with national business, well below the record 1987 their efforts to reduce holdings of narrowshare but a little above the average of previous margin assets, discussed previously. Nevertheyears. A quarter of loss provisions made by other less, at 3.07 percent, the margin at these banks large banks was ascribed to international busi- remained well below the industry average. ness, in line with the average of the mid-1980s. Other large banks also benefited from the higher For all banks with foreign offices, profits from interest income from Brazilian loans, which business abroad last year rose to the pre-1987 helped to increase their margin 18 basis points. share of about one-fifth of total net income; for Medium-sized banks, with assets between money center banks the contribution was about $300 million and $5 billion, registered slightly one-third. smaller changes in both interest income and The increased level of profitability of banks expenses than large banks other than money with assets of less than $5 billion resulted almost center banks. They finished the year with interest entirely from declines in provisions for losses, as income somewhat below and with interest exother factors affecting the earnings of these penses significantly below the industry's levels banks were not much changed on balance. as a proportion of assets. Thus, their margin Losses at banks in Texas, Oklahoma, and Loui- continued to exceed the average. siana deepened for the third consecutive year, The smallest banks registered growth in interand in 1988 were equivalent to almost 1 percent est income and expense that was less than half of assets. Late last year, the subsidiary banks of that for all banks. Over time, this group has the largest bank holding company in Texas, First tended to have higher interest income and lower Republic Corporation, were taken over by interest expense than larger institutions. Small NCNB Corporation in an FDIC-assisted merger. banks' net interest margin, at 4.33 percent of Apparently recovered from their problems ear- assets, continued to be well above the average lier in the decade, agricultural banks outper- spread for all banks. While rates paid on interestformed the industry average. Their return on bearing deposits nationally rose 38 basis points assets, 0.90 percent, has doubled over the past from 1987 to 1988, at this group of banks the two years. increase was only 20 basis points. This difference likely reflects both a lower degree of interest rate Net Interest Margin pass-through to depositors at smaller banks and a higher proportion of retail deposits. Higher interest rates lifted both interest income and interest expense last year. Increased returns Noninterest Income and Expense and on commercial bank loan portfolios accounted Security Gains for most of the increase in gross interest income in 1988. Rates paid on deposits, however, rose The increase in noninterest income in 1988 was less steeply, and the taxable equivalent net inter- twice that of noninterest expense (excluding loss est margin widened 17 basis points over the year, provisions). As a result, the negative spread to 3.78 percent. between these two components continued to The net interest margin at money center contract. banks improved considerably more than it did An important part of the improvement in inat other banks, despite a relatively large in- come was attributable to increased fees from crease of three-quarters of a point in interest merger-related financing activities at banks with expense. Interest income accounted for more than a percentage point more of their assets in 5. Despite the receipt of past-due interest income, most 1988 than in the previous year. This component money center banks did not remove Brazilian loans from was boosted substantially by the signing by nonperforming status. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 471 assets of $5 billion or more, as well as fee income 5. Stock price indexes and gains on assets held in trading accounts. January 6, 1988= 100 However, these large banks earned less from foreign exchange transactions last year than they did in 1987. Large banks also spent slightly more in 1988 for all types of noninterest expenses. In particular, money center banks' wages and benefits as a percentage of assets rose 2 percent last year (compared with no change at all banks) and remained above those for all banks for a second year, likely indicative of the costs of managing growing off-balance-sheet activities. Both noninterest income and expense were little changed at banks with assets of less than $5 1988 1989 billion. Noninterest income, 1.11 percent of as- Weekly data as of Wednesday. sets, remained 3A of a percentage point lower at somewhat after that (chart 5). Nonetheless, it these banks than at larger banks. This developoutperformed the general market overall in 1988, ment was likely attributable to less involvement likely reflecting the boost to dividends. The in off-balance-sheet and trading account activigrowth of the index of stock prices for money ties. Deposit service charges and trust income center banks was little different from that of the accounted for half of their noninterest income S&P 500 during the first four months of 1988. But but showed no growth over 1987. Expenses for it trended upward thereafter and since late 1988 salaries and premises declined relative to assets has even gained on the index for regional banks. at these banks for the second consecutive year. Capital gains on the sale of securities held in Capital investment accounts fell for a second straight year across all sizes of banks. The money center Retained earnings funded three-fifths of the adbanks hold about one-third as much of their ditions to equity capital in 1988 (table 9). The assets in securities as banks on average do; yet industry's ratio of regulatory primary capital to their gains on sales from investment accounts, expressed as a share of assets, were triple the average for all banks last year. 9. Changes in total equity capital, all insured commercial banks Dividends and Retained Earnings Millions of dollars, except as noted ^ Commercial banks paid dividends equal to 0.44 Item 1984 1985 1986 1987 1988 percent of their assets in 1988, a higher rate than in any of the past 20 years. While most smaller Retained income1 All banks 7,795 9,348 8,069 -7,324 11,691 institutions paid out about 64 percent of profits in Large banks2 2,239 4,177 4,121 -10,142 7,567 dividends, the share for money center banks was Net change in equity capital only about 36 percent. As a group, these latter All banks 14,940 15,399 16,103 2,226 19,340 banks had to dip into capital in 1987 to pay Large banks 6,095 5,559 7,446 -5,554 10,914 dividends, and they retained a larger proportion Retained income as a percent of the net of their net income this past year to replenish change in equity those funds. Nevertheless, even at money center capital All banks 52 61 50 n.m. 60 banks dividends were paid out at a rate well Large banks 37 75 55 n.m. 69 above the average of recent years. 1. Net income less cash dividends declared on preferred and The stock price index of regional banks rose common stock. relative to the Standard and Poor's 500 index 2. Banks with fully consolidated assets of $5 billion or more at year-end. until the third quarter of last year and fell off n.m. Not meaningful. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 Federal Reserve Bulletin • July 1989 10. Growth of assets and equity capital in 1988 of the growth of equity and assets to initial Percent capitalization. Smaller banks also had a wider dispersion of Ratio o to f e a q s u s i e t t y s 1 capital Growth2 capital ratios than large banks did. For banks with AAsssseett ssiizzee ooff assets of less than $5 billion, the average ratio of bbaannkk Interest- Equity equity capital to assets for those in the top quartile Quartile Average bearing assets capital was more than 7 percentage points higher than it was for those in the lowest quartile. For larger 1 1 5.49 6.19 12.41 banks, this range was about half as wide. Less than $5 1 2 7.38 7.67 5.93 billion | 3 8.82 6.88 5.94 J 4 12.88 10.16 4.93 1 3.17 -2.70 33.76 $5 billion or 2 4.86 -.31 12.00 DEVELOPMENTS IN EARLY 1989 more 3 5.66 5.85 12.64 4 7.23 11.49 3.71 The profitability of commercial banks continued 1. Total equity capital divided by total assets, as of December 31, to increase during the first quarter of 1989. The 1987. 2. Measured from end-of-year to end-of-year. improvement resulted from higher net interest margins, continued low provisions for loan assets increased 13 basis points to 7.93 percent in losses, and slow growth of expenses. Banks of all 1988. While on average banks showed only a sizes registered gains. Some of the largest banks, small change in capitalization, money center however, suffered declines in net income, in part banks, which as a group have relatively low due to lower profits from trading in bonds and capital ratios, improved their capital positions foreign exchange. substantially. A full 90 percent of the increase in The spring of this year witnessed the failure of their equity capital came from retained earnings. MCorp, the last large Texas banking company to Regardless of size, there was a general connec- have remained independent of banking interests tion between banks' equity positions at the be- outside the state. In what is likely to be the third ginning of the year and subsequent expansion of largest failure in U.S. banking history (exceeded interest-earning assets and equity capital last only by Continental Illinois and First Republic), year (table 10). Banks that began the year with the FDIC took control of 20 of MCorp's 25 relatively low equity capital made greater efforts subsidiary banks. In total, 86 banks had failed in to boost its level; those that started 1988 with less the United States as of June 3 (compared with 74 need for additional capital showed slower equity for a similar period of time last year). growth. At the same time, banks' growth of Another development early in the year was the interest-earning assets was inversely correlated announcement by Secretary of the Treasury with expansion of holdings of equity. For exam- Nicholas F. Brady of a new plan to address the ple, large banks in the lowest quartile shrank economic situation of heavily indebted countries. their interest-earning assets 2.7 percent and in- A key element of the Secretary's initiative increased their equity one-third. Conversely, the volves encouraging commercial banks to reduce best-capitalized large banks expanded interest- debt payments for those countries that impleearning assets 1IV2 percent and added less than 4 ment acceptable economic adjustment programs. percent to their equity. Smaller banks, which are Financial guarantees for banks that reduce their in general better capitalized, exhibited less sen- debt loads would be provided by the World Bank sitivity than larger banks in terms of the relation and the International Monetary Fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 473 APPENDIX: DATA SOURCES two surveys may be found in an appendix to the article by Thomas F. Brady, "Changes in Loan The basic source of data for this article is the Pricing and Business Lending at Commercial Report of Condition and Income (the Call Re- Banks," FEDERAL RESERVE BULLETIN, vol. 71 port) filed by every insured commercial bank (January 1985), page 13. Results of the LPS with its regulatory agency. This report provides may be obtained by writing to the Banking and a complete balance sheet and income statement Money Market Statistics Section, stop 81, Difor each bank. Unless otherwise noted, the data vision of Monetary Affairs, Board of Governors reflect the foreign and domestic operations of of the Federal Reserve System, Washington, banks on a fully consolidated basis. Supplemen- D.C. 20551. tary sources of data used in this article are the Since February 1984, questions have been Survey of Terms of Bank Lending (STBL) and asked in the LPS concerning a variety of bank the Senior Loan Officer Opinion Survey of lending practices as listed below. Bank Lending Practices (LPS). Details on these Date Topic Date Topic May 1989 Commercial and industrial February 1986 Sales of participations in domes- (C&I) loans secured by real tic C&I loans estate; adjustable-rate mort- November 1985 Compensating balances for loan gages. commitments; business loan February 1989 Bank lending related to mergers demand and other financial restructur- August 1985 Standby letters of credit ings June 1985 Sales of participations in domes- November 1988 Growth of C&I lending tic C&I loans; delinquency August 1988 Sales of C&I loans and partici- rates on closed-end consumer pations installment loans May 1988 Security loans; business bor- April 1985 Bankers acceptances rowing under loan commit- February 1985 Growth of C&I lending; comments mercial paper market as an February 1988 Bank lending related to mergers alternative to bank loans; and other financial restructur- sales of interest rate caps; ings; growth of C&I lending trends in consumer install- December 1987 Changes in bank credit since the ment lending stock market crash November 1984 Loan sales and participations; November 1987 Home equity lines of credit interest rate swaps; growth of September 1987 Growth of C&I lending C&I lending June 1987 Sales of C&I loans and partici- September 1984 Trends in consumer and busipations ness loan growth February 1987 Business lending related to June 1984 Impact on bank lending pracmergers and other financial tices of recent disruptions in restructurings financial markets; financial January 1987 Home equity lines of credit futures November 1986 Tax reform affecting bank credit April 1984 Booking of domestic C&I loans August 1986 Lending to "middle-market" offshore; loans to finance mergbusiness customers ers and acquisitions; growth of June 1986 Security loans; credit-card lend- consumer and C&I lending ing and delinquency rates February 1984 Adjustable-rate mortgages Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 Federal Reserve Bulletin • July 1989 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks A. All banks Item 1984 1985 1986 1987 1988 Balance sheet items as a percent of average consolidated assets Interest-earning assets 86.47 86.58 86.97 87.43 87.94 57.56 59.85 59.44 59.75 60.59 Commercial and industrial 22.52 22.26 20.% 20.04 19.55 U.S. addressees 17.50 16.93 16.60 16.55 Non-U.S. addressees 4.76 4.03 3.44 3.00 Real estate 14.77 15.71 16.71 18.69 20.56 Construction 2.80 3.20 3.49 3.87 4.01 Farmland .40 .41 .43 .46 .49 1- to 4-family 7.12 7.20 7.31 8.00 9.03 Home equity 1.13 Other 7.90 Multifamily residential .41 .44 .49 .56 .58 Nonfarm nonresidential 3.64 4.00 4.43 5.21 5.77 Consumer 9.97 10.80 11.06 11.10 11.31 Credit card 2.48 2.75 2.97 3.13 Installment and other 8.32 8.31 8.13 8.18 Foreign government i.68 1.56 1.43 1.34 1.23 Agricultural production 1.65 1.51 1.22 1.03 .99 Security .75 .83 .79 .63 .53 Other 6.16 7.19 7.27 6.92 6.43 Securities 16.47 15.53 16.11 16.67 16.84 U.S. government 9.96 9.50 9.26 10.03 10.35 U.S. Treasury 5.63 4.50 4.29 5.58 5.47 Government-backed mortgage pools .96 1.16 2.08 2.59 Other government 4.05 3.80 2.38 2.29 State and local government 5.73 4.95 5.31 4.34 3.69 Tax exempt 4.28 3.63 Taxable '.06 .06 Other bonds and stocks .93 i.08 1.55 2.29 2.80 Trading account assets 1.24 1.55 1.32 1.26 Gross federal funds sold and reverse repurchase agreements... 4.17 4.43 4.72 4.43 4.26 Interest-bearing deposits 6.33 5.53 5.15 5.26 4.99 Deposit liabilities 77.93 77.30 76.72 76.43 76.22 In foreign offices 12.94 12.61 11.61 11.38 10.85 In domestic offices 64.99 64.69 65.11 65.06 65.37 Demand deposits 16.47 15.63 16.03 15.41 14.34 Other checkable deposits 4.34 4.57 5.21 6.01 6.27 Other core deposits MMDA 10.32 11.72 12.64 12.32 11.44 Savings 5.10 4.64 4.79 5.76 6.08 Small time 16.53 16.67 15.68 14.95 16.16 Large time deposits 12.23 11.46 10.76 10.60 11.08 Gross federal funds purchased and repurchase agreements 7.51 7.68 8.25 8.06 7.72 Other liabilities for borrowed money 2.78 3.44 4.02 4.45 4.93 MEMO Money market liabilities 35.46 35.19 34.63 34.49 3344..5588 Loss reserves .70 .80 .92 1.36 1.54 Total equity capital 6.01 6.17 6.21 6.06 6.10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 475 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks —Continued A. All banks—Continued Item 1984 1985 1986 1987 1988 Effective interest rate (percent) Rates earned Securities 9.67 9.42 8.49 7.95 8.06 State and local government 6.16 7.15 7.17 7.27 7.38 Loans, gross 13.99 11.93 10.71 10.34 10.99 Net of loss provision 12.87 10.78 9.37 8.21 10.10 Taxable equivalent Securities 11.39 11.88 10.96 8.89 9.06 Securities and gross loans 13.56 11.93 10.77 10.09 10.67 Rates paid Interest-bearing deposits 9.92 8.20 6.98 5.82 6.20 Large certificates of deposit 10.67 8.72 7.31 6.86 7.39 Deposits in foreign offices 12.62 9.48 7.78 7.90 8.92 Other deposits 8.84 7.66 6.67 5.10 5.34 All interest-bearing liabilities 10.20 8.29 7.01 6.11 6.59 Income and expenses as a percent of average net consolidated assets Gross interest income 10.33 9.58 8.50 8.34 8.95 Gross interest expense 6.98 6.08 5.11 4.95 5.42 Net interest margin 3.35 3.50 3.39 3.40 3.53 Taxable equivalent 3.71 3.88 3.79 3.61 3.78 Noninterest income 1.09 1.20 1.28 1.41 1.47 Loss provision .57 .68 .78 1.27 .54 Other noninterest expense 3.04 3.17 3.22 3.30 3.33 Securities gains or losses (-) -.01 .06 .14 .05 .01 Income before tax .83 .90 .80 .29 1.14 Taxes .19 .21 .19 .18 .33 Extraordinary items .01 .01 .01 .01 .03 Net income .64 .70 .62 .11 .84 Cash dividends declared .32 .33 .33 .36 .44 Net retained income .32 .37 .29 -.25 .40 MEMO Average assets (billions of dollars) 2,401 2,559 2,753 2,883 2,959 Number of banks 13,952 13,898 13,733 13,273 12,691 See notes to tables in the text. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 Federal Reserve Bulletin • July 1989 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks B. Banks with less than $300 million in assets Item 1984 1985 1986 1987 1988 Balance sheet items as a percent of average consolidated assets 89.33 89.85 90.00 90.50 90.83 M Loans 52.39 54.21 53.10 53.29 54.32 Commercial and industrial 14.51 15.00 14.01 13.23 12.74 U.S. addressees 14.% 13.99 13.21 12.72 Non-U.S. addressees .04 .02 .02 .02 Real estate 19.57 20.69 21.75 23.78 25.69 Construction 1.99 2.22 2.22 2.22 2.19 Farmland 1.19 1.27 1.38 1.55 1.73 1- to 4-family 10.69 11.20 11.48 12.55 13.89 Home equity .64 .72 Other 12.% 13.16 Multifamily residential .45 .49 .53 .59 .60 Nonfarm nonresidential 5.25 5.70 6.14 6.87 7.29 Consumer 12.57 12.78 12.15 11.51 11.28 Credit card .48 .53 .66 .74 Installment and other 12.29 11.62 10.85 10.53 Foreign government .01 .02 .02 .01 .01 Agricultural production 4.50 4.27 3.62 3.23 3.24 Security .13 .08 .07 .06 .06 Other .91 1.37 1.48 1.47 1.30 Securities 28.64 27.19 26.80 27.44 28.07 U.S. government 19.33 18.39 17.73 18.70 19.64 U.S. Treasury 9.11 9.77 Government-backed mortgage pools 11..5522 11..4400 2.58 3.25 Other government 7.01 6.61 State and local government 8.90 88..1122 8.01 6.65 5.72 Tax exempt 6.48 5.52 Taxable .17 .20 Other bonds and stocks .63 .68 1.06 2.09 2.71 Trading account assets .03 .06 .07 .05 Gross federal funds sold and reverse repurchase agreements... 5.36 5.55 7.01 6.45 5.29 Interest-bearing deposits 2.92 2.86 3.03 3.25 3.10 Deposit liabilities 87.61 87.81 88.14 88.11 87.% In foreign offices .06 .09 .06 .03 .04 In domestic offices 87.56 87.71 88.08 88.09 87.92 Demand deposits 16.73 15.39 15.03 14.41 13.74 Other checkable deposits 7.64 8.03 9.00 10.30 10.68 Other core deposits MMDAs 12.77 13.99 14.94 1144..7777 1133..2211 Savings 7.98 7.07 7.25 8.41 8.73 Small time 31.39 31.61 30.46 29.25 30.67 Large time deposits 11.05 11.61 11.40 10.95 10.89 Gross federal funds purchased and repurchase agreements 1.85 1.59 1.36 1.34 1.32 Other liabilities for borrowed money .49 .49 .50 .53 .55 MEMO Money market liabilities 13.45 13.79 13.32 12.85 1122..8800 .60 .68 .77 .84 .85 Total equity capital 7.96 8.04 8.01 8.09 8.26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks All A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks —Continued B. Banks with less than $300 million in assets—Continued Item 1984 1985 1986 1987 1988 Effective interest rate (percent) Rates earned Securities 10.34 9.63 8.71 7.89 7.91 State and local government 7.17 7.47 7.48 7.51 7.58 Loans, gross 14.36 12.44 11.44 10.78 11.00 Net of loss provision 13.11 10.98 9.81 9.59 10.07 Taxable equivalent Securities 12.07 11.45 10.49 8.95 8.84 Securities and gross loans 13.61 12.11 11.13 10.18 10.31 Rates paid Interest-bearing deposits 9.48 7.92 6.91 5.47 5.67 Large certificates of deposit 10.92 8.67 7.31 6.54 7.09 Other deposits 9.23 7.79 6.84 5.31 5.46 All interest-bearing liabilities 9.49 7.92 6.91 5.50 5.70 Income and expenses as a percent of average net consolidated assets Gross interest income 10.76 10.17 9.18 8.63 8.91 Gross interest expense 6.69 5.99 5.21 4.67 4.89 Net interest margin 4.07 4.18 3.97 3.% 4.03 Taxable equivalent 4.58 4.67 4.45 4.27 4.33 Noninterest income .78 .81 .81 .83 .85 Loss provision .58 .79 .87 .64 .51 Other noninterest expense 3.25 3.34 3.35 3.33 3.35 Securities gains or losses (-) -.01 .07 .15 .03 .01 Income before tax 1.02 .92 .71 .86 1.01 Taxes .20 .19 .15 .24 .29 Extraordinary items .01 .01 .02 .02 .02 Net income .83 .74 .58 .63 .74 Cash dividends declared .41 .43 .40 .41 .47 Net retained income .42 .32 .19 .23 .27 MEMO Average assets (billions of dollars) 638 652 664 666 647 Number of banks 13,218 13,100 12,871 12,414 11,796 See notes to tables in the text. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 Federal Reserve Bulletin • July 1989 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks C. Banks with $300 million to $5 billion in assets Item 1984 1985 1986 1987 1988 Balance sheet items as a percent of average consolidated assets Interest-earning assets 86.14 87.43 87.67 88.27 88.82 Loans 55.25 59.63 60.41 61.99 63.23 Commercial and industrial 19.02 19.32 18.70 18.51 18.22 U.S. addressees 18.79 18.33 18.13 17.99 Non-U.S. addressees .53 .37 .38 .23 Real estate 16.55 17.99 19.66 22.00 24.23 Construction 3.61 4.05 4.42 4.82 4.80 Farmland .20 .20 .23 .24 .27 1- to 4-family 7.52 7.93 8.23 9.07 10.49 Home equity 1.51 1.70 Other 8.47 8.79 Multifamily residential .50 .55 .64 .65 .66 Nonfarm nonresidential 4.71 5.25 6.13 7.21 8.01 Consumer 12.68 13.93 13.% 14.28 14.66 Credit card 3.28 3.46 4.01 4.02 Installment and other 10.65 10.50 10.28 10.64 Foreign government .49 .43 .33 .33 .23 Agricultural production .69 .69 .57 .46 .46 Security .73 .65 .61 .54 .39 Other 5.08 6.62 6.59 5.86 5.03 Securities 19.69 18.34 18.28 18.10 18.17 U.S. government 11.59 11.09 10.43 11.01 11.18 U.S. Treasury 8.32 7.96 7.20 6.86 6.37 Government-backed mortgage pools 1.01 1.18 2.13 2.39 Other government 2.12 2.04 2.02 2.43 State and local government 7.21 6.06 6.35 4.92 4.14 Tax exempt 4.87 4.10 Taxable .05 .05 Other bonds and stocks 1.02 1.19 1.50 2.17 2.84 Trading account assets .29 .34 .26 .32 Gross federal funds sold and reverse repurchase agreements... 5.51 5.14 5.26 4.71 4.16 Interest-bearing deposits 5.38 4.03 3.38 3.21 2.94 Deposit liabilities 79.26 79.74 79.90 78.56 78.75 In foreign offices 2.91 2.69 2.42 2.50 2.31 In domestic offices 76.35 77.05 77.49 76.05 76.44 Demand deposits 20.24 18.72 18.68 17.43 16.10 Other checkable deposits 5.08 5.36 6.31 7.08 7.44 Other core deposits MMDAs 12.67 14.75 15.92 15.22 1133..8877 Savings 5.33 5.98 6.12 6.90 7.37 Small time 17.99 18.68 17.91 16.88 19.13 Large time deposits 14.04 13.57 12.55 12.54 12.53 Gross federal funds purchased and repurchase agreements 9.49 8.56 8.60 9.17 8.79 Other liabilities for borrowed money 1.88 2.33 2.27 3.03 3.20 MEMO Money market liabilities 28.31 27.14 25.84 27.24 26.83 Loss reserves .70 .77 .85 1.02 1.02 Total equity capital 6.17 6.39 6.52 6.51 6.59 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 479 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks —Continued C. Banks with $300 million to $5 billion in assets—Continued Item 1984 1985 1986 1987 1988 Effective interest rate (percent) Rates earned Securities 9.17 9.13 8.26 7.69 7.86 State and local government 5.63 6.87 6.94 7.02 7.14 Loans, gross 13.74 11.75 10.70 10.23 10.72 Net of loss provision 12.80 10.80 9.56 8.97 9.76 Taxable equivalent Securities 10.86 11.87 11.04 8.80 8.85 Securities and gross loans 13.21 11.79 10.78 10.05 10.44 Rates paid Interest-bearing deposits 9.25 7.82 6.77 5.46 5.78 Large certificates of deposit 10.55 8.55 7.23 6.79 7.39 Deposits in foreign offices 11.11 8.63 6.96 6.79 7.65 Other deposits 8.74 7.58 6.64 5.11 5.37 All interest-bearing liabilities 9.40 7.82 6.75 5.63 6.00 Income and expenses as a percent of average net consolidated assets Gross interest income 9.95 9.43 8.54 8.24 8.73 Gross interest expense 6.38 5.67 4.87 4.57 4.98 Net interest margin 3.58 3.76 3.67 3.67 3.75 Taxable equivalent 4.05 4.26 4.19 3.99 4.04 Noninterest income 1.27 1.32 1.27 1.32 1.33 Loss provision .46 .56 .69 .78 .61 Other noninterest expense 3.43 3.55 3.44 3.42 3.41 Securities gains or losses (-) -.01 .04 .11 .04 .00 Income before tax .95 1.00 .93 .83 1.06 Taxes .15 .18 .18 .26 .31 Extraordinary items .01 .01 .01 .01 .01 Net income .81 .83 .76 .58 .76 Cash dividends declared .36 .37 .39 .42 .46 Net retained income .45 .45 .37 .16 .30 MEMO Average assets (billions of dollars) 640 685 738 808 804 Number of banks 668 724 779 777 800 See notes to tables in the text. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 Federal Reserve Bulletin • July 1989 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks D. Nine money center banks Item 1984 1985 1986 1987 1988 Balance sheet items as a percent of average consolidated assets Interest-earning assets 82.72 83.86 84.59 84.76 84.84 Loans 63.39 62.94 61.09 59.23 58.53 Commercial and industrial 31.78 29.46 26.49 24.23 22.77 U.S. addressees 14.34 13.24 12.57 12.04 Non-U.S. addressees 15.12 13.25 11.60 10.73 Real estate 9.81 10.49 11.45 12.52 13.71 Construction 1.97 2.18 2.52 2.88 2.96 Farmland .07 .07 .06 .04 .04 1- to 4-family 4.22 4.22 4.17 4.35 5.03 Home equity .43 .55 Other 4.26 4.48 Multifamily residential .32 .38 .45 .56 .60 Nonfarm nonresidential 1.71 1.89 2.09 2.33 2.34 Consumer 5.28 5.78 6.13 5.99 5.82 Credit card 2.21 2.21 2.05 1.77 Installment and other 3.57 3.92 3.94 4.04 Foreign government 4.11 3.92 3.82 3.65 3.67 Agricultural production .61 .49 .36 .28 .26 Security .98 1.21 1.16 .82 .65 Other 10.82 11.57 11.67 11.75 11.65 Securities 5.78 5.75 7.08 8.15 8.65 U.S. government 2.31 2.31 2.28 2.75 3.08 U.S. Treasury 1.79 1.85 1.58 1.43 1.34 Government-backed mortgage pools .38 .61 1.25 1.64 Other government .09 .09 .07 .10 State and local government 2.17 1.61 2.07 2.00 1.85 Tax exempt 1.99 1.84 Taxable .01 .01 Other bonds and stocks 1.45 1.82 2.73 3.40 3.72 Trading account assets 3.67 4.90 4.52 4.33 Gross federal funds sold and reverse repurchase agreements... 2.51 3.54 3.62 3.95 4.64 Interest-bearing deposits 8.29 7.95 7.91 8.91 8.69 Deposit liabilities 72.08 70.74 69.92 70.16 69.57 In foreign offices 35.21 35.86 34.64 35.03 34.02 In domestic offices 36.88 34.88 35.28 35.13 35.56 Demand deposits 11.83 11.51 12.46 12.34 11.53 Other checkable deposits 1.24 1.30 1.63 2.03 2.23 Other core deposits MMDAs 6.36 7.35 7.70 6.89 66..7722 Savings 1.89 1.77 2.06 3.09 3.56 Small time 4.95 4.76 4.12 3.95 4.38 Large time deposits 10.62 8.18 7.30 6.83 7.14 Gross federal funds purchased and repurchase agreements 7.42 7.66 8.17 6.87 6.02 Other liabilities for borrowed money 5.25 6.51 7.95 8.69 9.52 MEMO Money market liabilities 58.49 58.21 58.07 57.41 56.69 Loss reserves .69 .83 1.02 2.11 2.69 Total equity capital 4.56 4.69 4.78 4.33 4.42 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 481 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks —Continued D. Nine money center banks—Continued Item 1984 1985 1986 1987 1988 Effective interest rate (percent) Rates earned Securities 9.37 9.88 8.85 8.72 8.67 State and local government 5.28 7.09 7.33 7.52 7.70 Loans, gross 14.10 11.98 10.44 10.34 11.67 Net of loss provision 13.22 10.78 9.12 6.68 11.02 Taxable equivalent Securities 11.05 12.76 11.69 9.00 9.78 Securities and gross loans 13.98 12.05 10.58 10.18 11.50 Rates paid Interest-bearing deposits 11.06 8.91 7.41 6.70 7.43 Large certificates of deposit 10.70 9.07 7.45 7.33 8.04 Deposits in foreign offices 12.90 9.59 7.88 8.01 9.01 Other deposits 7.83 7.43 6.47 4.47 5.00 All interest-bearing liabilities 11.55 7.% 7.57 7.30 8.25 Income and expenses as a percent of average net consolidated assets Gross interest income 10.50 9.50 8.26 8.41 9.55 Gross interest expense 7.85 6.75 5.58 5.85 6.63 Net interest margin 2.65 2.75 2.68 2.57 2.91 Taxable equivalent 2.83 2.92 2.89 2.60 3.07 Noninterest income 1.15 1.35 1.62 1.99 2.11 Loss provision .50 .75 .79 2.16 .38 Other noninterest expense 2.53 2.71 2.96 3.17 3.27 Securities gains or losses (-) .02 .06 .13 .08 .03 Income before tax .78 .71 .68 -.70 1.40 Taxes .26 .26 .22 .15 .41 Extraordinary items 0 0 0 0 .08 Net income .52 .45 .46 -.86 1.06 Cash dividends declared .24 .25 .21 .28 .38 Net retained income .29 .21 .25 -1.14 .69 MEMO Average assets (billions of dollars) 590 618 645 650 641 Number of banks 9 9 9 9 9 See notes to tables in the text. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 Federal Reserve Bulletin • July 1989 A.l. Portfolio composition, interest rates, and income and expenses, all insured commercial banks E. Large banks other than money center banks Item 1984 1985 1986 1987 1988 Balance sheet items as a percent of average consolidated assets Interest-earning assets 83.12 84.89 85.57 86.17 87.30 Loans 60.07 63.02 62.87 63.45 64.33 Commercial and industrial 26.04 26.02 24.79 23.98 23.42 U.S. addressees 21.% 21.60 21.36 21.42 Non-U.S. addressees 4.06 3.19 2.62 1.99 Real estate 12.40 13.09 13.72 16.05 18.49 Construction 3.74 4.33 4.61 5.15 5.43 Farmland .06 .08 .10 .11 .12 1- to 4-family 5.56 5.29 5.32 6.04 7.08 Home equity 1.16 1.33 Other 5.43 5.75 Multifamily residential .34 .33 .34 .44 .47 Nonfarm nonresidential 2.55 2.91 3.18 4.11 5.15 Consumer 8.80 10.25 11.52 11.78 12.35 Credit card 4.00 4.60 4.68 5.09 Installment and other 6.26 6.91 7.10 7.26 Foreign government 2.43 2.08 1.71 1.59 1.23 Agricultural production .57 .50 .42 .38 .35 Security 1.27 1.43 1.32 1.04 .91 Other 8.57 9.64 9.40 8.63 7.57 Securities 9.89 9.79 12.09 13.11 13.42 U.S. government 5.27 5.47 6.46 7.73 8.15 U.S. Treasury 3.95 4.14 4.45 4.72 4.55 Government-backed mortgage pools .88 1.41 2.29 3.00 Other government .45 .60 .71 .60 State and local government 4.13 3.68 4.65 3.74 3.14 Tax exempt 3.72 3.13 Taxable .02 .01 Other bonds and stocks .59 .64 .97 1.64 2.13 Trading account assets 1.12 1.14 .79 .74 Gross federal funds sold and reverse repurchase agreements... 2.98 3.33 3.01 2.80 3.31 Interest-bearing deposits 9.38 7.64 6.46 6.03 5.50 Deposit liabilities 71.25 69.94 68.90 69.41 70.17 In foreign offices 15.76 13.57 10.97 10.28 9.40 In domestic offices 55.49 56.37 57.93 59.13 60.77 Demand deposits 16.79 16.61 17.48 16.77 15.26 Other checkable deposits 2.94 3.26 3.77 4.59 4.96 Other core deposits MMDAs 8.97 10.29 11.56 11.79 11.40 Savings 3.73 3.44 3.60 4.56 4.83 Small time 9.82 10.48 10.06 9.91 11.48 Large time deposits 13.24 12.28 11.45 11.50 12.84 Gross federal funds purchased and repurchase agreements 12.01 13.24 14.40 13.76 12.73 Other liabilities for borrowed money 3.86 4.75 5.55 5.73 6.34 MEMO Money market liabilities 44.86 43.84 42.37 41.27 41.31 Loss reserves .83 .92 1.06 1.54 1.68 Total equity capital 5.08 5.42 5.50 5.29 5.29 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in the Profitability and Lending Practices of Commercial Banks 483 A.l. Portfolio composition, interest rates, and income and expenses, insured commercial banks —Continued E. Large banks other than money center banks Item 1984 1985 1986 1987 1988 Effective interest rate (percent) Rates earned Securities 8.76 9.15 8.17 8.04 8.25 State and local government 5.27 6.90 6.92 7.15 7.26 Loans, gross 13.75 11.60 10.35 10.12 10.78 Net of loss provision 12.30 10.57 9.06 7.61 9.80 Taxable equivalent Securities 10.56 12.69 11.44 8.88 9.31 Securities and gross loans 13.48 11.75 10.54 9.98 10.64 Rates paid Interest-bearing deposits 10.11 8.34 6.90 5.88 6.26 Large certificates of deposit 10.58 8.80 7.34 7.06 7.40 Deposits in foreign offices 12.28 9.37 7.67 7.83 8.93 Other deposits 8.73 7.68 6.47 6.63 5.29 All interest-bearing liabilities 10.56 8.09 6.87 6.18 6.64 Income and expenses as a percent of average net consolidated assets Gross interest income 10.08 9.19 8.03 8.14 8.76 Gross interest expense 7.11 5.94 4.85 4.82 5.33 Net interest margin 2.97 3.25 3.18 3.31 3.42 Taxable equivalent 3.26 3.59 3.58 3.48 3.66 Noninterest income 1.19 1.32 1.42 1.53 1.61 Loss provision .78 .64 .79 1.58 .62 Other noninterest expense 2.87 3.02 3.09 3.25 3.29 Securities gains or losses (-) -.02 .07 .16 .05 .00 Income before tax .49 .96 .88 .06 1.13 Taxes .16 .23 .21 .08 .33 Extraordinary items .01 .01 .01 .00 .02 Net income .34 .74 .68 -.02 .82 Cash dividends declared .24 .26 .32 .35 .45 Net retained income .10 .48 .36 -.36 .37 MEMO Average assets (billions of dollars) 534 605 707 759 867 Number of banks 57 65 74 73 86 See notes to tables in the text. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 Federal Reserve Bulletin • July 1989 A.2. Report of income, all insured commercial banks Millions of dollars Item 1984 1985 1986 1987 1988 Operating income, total 274,255 275,741 269,152 281,218 308,580 Interest, total 248,034 245,152 233,961 240,548 264,999 Loans 181,897 181,368 172,712 177,217 196,119 Balances with banks 16,556 13,660 11,139 11,874 13,198 Gross federal funds sold and reverse repurchase agreements 10,455 9,404 8,918 8,810 10,025 Securities (excluding trading accounts) 36,730 37,387 37,860 38,698 40,738 Tax exempt 8,238 8,752 10,594 9,085 8,014 Taxable 28,491 28,635 27,266 29,613 32,724 Trading account assets 2,3% 3,333 3,332 3,948 4,918 Service charges on deposits 6,518 7,333 7,908 8,659 9,323 Other operating income 19,703 23,257 27,282 32,012 34,258 Operating expense, total 254,285 254,184 250,821 274,330 275,050 Interest, total 167,670 155,549 140,762 142,649 160,455 Deposits 139,331 129,439 115,898 113,687 125,961 Large certificates of deposit 25,767 22,705 19,281 18,935 21,907 Deposits in foreign offices 35,782 30,117 24,440 25.946 28,248 Other deposits 77,782 76,618 72,177 68,806 75,806 Gross federal funds purchased and repurchase agreements 19,322 16,432 15,745 15,472 18,146 Other borrowed money' 9,017 9,677 9,119 13,220 16,347 Salaries, wages, and employee benefits 36,463 39,467 42,262 44,463 45,595 Occupancy expense 11,760 13,137 14,291 15,041 15,4% Loss provision 13,704 17,504 21,538 36,534 15,990 Other operating expense 24,688 28,527 31,968 35,643 37,515 Securities gains or losses (-) -146 1,506 3,785 1,397 285 Income before tax 19,824 23,063 22,115 8,286 33,815 Taxes 4,660 5,499 5,184 5,267 9,871 Extraordinary items 216 237 271 162 833 Net income 15,379 17,802 17,202 3,181 24,777 Cash dividends declared 7,584 8,455 9,133 10,505 13,086 1. Includes interest paid on U.S. Treasury tax and loan account balances and on subordinated notes and debentures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

485 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report, covering the period Febru- prompted investors to feel more confident about ary through April 1989, provides information on increasing the share of dollar assets in their Treasury and System foreign exchange opera- overall portfolios and reducing the hedged protions. It was presented by Sam Y. Cross, Man- portion of their dollar assets. By such actions, ager of Foreign Operations of the System Open they could benefit more from the relatively wide Market Account and Executive Vice President in short-term interest rate differentials favoring the charge of the Foreign Group of the Federal dollar and avoid the increased costs of maintain- Reserve Bank of New York. Daniel Brotman was ing hedges. primarily responsible for preparation of the Meanwhile, as positive sentiment toward the report.1 dollar mounted, commercial market participants also began to alter their trading strategies. Those, The dollar traded with a firm undertone during such as Japanese exporters, who at times in the most of the three months ending in April, buoyed past had been heavy forward sellers of dollar by persistent investment and commercial de- receivables, scaled back their selling in advance mand for the currency. At times, upward pres- of payment. Similarly, those who had dollars to sure intensified and, in keeping with Group of buy in the future began to buy more dollars Seven (G-7) undertakings to foster exchange rate during the period lest the U.S. currency rise stability, the U.S. monetary authorities inter- further. With the dollar consistently well bid in vened to resist the dollar's rise. On occasion, the the market, interbank and speculative positionupward pressure subsided and the dollar eased takers became more willing to take on long-dollar back somewhat. Overall, dollar exchange rates positions. remained more stable than in recent quarterly Underpinning the more positive sentiment periods, although throughout the period the dol- toward the dollar were two key factors: interest lar continued to edge back toward the highs rate differentials and political developments. Inreached in the fall of 1988. On balance, the dollar terest rate differentials continued to favor the rose VA percent against the German mark and dollar, providing a strong incentive for investors Canadian dollar, 2VA percent against the Japanese to purchase dollar assets so long as they preyen, 4 percent against the British pound, and 5 sumed the dollar would remain stable or rise. percent against the Swiss franc. The dollar ended During the three months ending in April, shortthe three-month period 1 percent higher on a term interest rate differentials against the yen trade-weighted basis as measured by the staff of increased from what were already considered the Board of Governors of the Federal Reserve high levels, while against the mark they remained System. sizable but in about the same range as earlier. A variety of factors contributed to the invest- At times during the period, political development demand for dollars and dollar assets during ments abroad also weighed against several major this period. The currency's stronger performance foreign currencies. In Japan, investigations of an in 1988 and early 1989 relative to preceding years insider trading scandal brought the government of Prime Minister Takeshita under increasing pressure and raised concerns about its viability. 1. The charts for the report are available on request from In Germany, electoral setbacks to the governing Publications Services, Board of Governors of the Federal coalition's leading party and other centrist par- Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 Federal Reserve Bulletin • July 1989 ties gave rise to market uncertainty at a time period from February 2 through February 6 in the when there was already considerable confusion only intervention operations during the month. in the market surrounding the imposition and Thereafter, sentiment toward the dollar took subsequent removal of a withholding tax on on a more cautious tone. This change in sentiinterest income. ment appeared, in part, to reflect concern about Under these circumstances, market partici- central bank intervention. The dollar was appants appeared increasingly willing to overlook, proaching levels at which central banks had at least for the time being, developments cited acted forcefully to counter its rise in 1988. Belast year as giving rise to concerns about the lieving that the central banks would again seek to dollar. Trade data released by the United States limit the dollar's rise to these levels, market and other countries during the period suggested participants appeared less aggressive about bidthat the pace of adjustment of world trade and ding for dollars in the exchange market. Also, current account balances might be slowing. Sim- after President Bush's budget address before ilarly, market observers at times expressed dis- Congress on February 9, market participants appointment over the absence of plans for sub- began to adopt a more realistic view regarding stantial, long-term reduction of the U.S. budget the difficulties the Administration and the Condeficit. gress would face in negotiating a long-term plan During the period, the degree of upward pres- to reduce the U.S. fiscal deficit. After rising in sure on the dollar varied in response to shifting early February to DM1.8880 and ¥130.67, the market views regarding inflationary pressures dollar began to edge lower, and upward pressure and the appropriate tightness of monetary policy abated. in the United States and abroad. Changing mar- By mid-February, inflation and monetary polket assessments of official commitments to ex- icy had become the most immediate market change rate stability at times also affected market concerns. A variety of economic statistics redemand for the U.S. currency. Upward pressure leased at that time seemed to indicate a surpriswas most pronounced at the opening of the ing upturn in inflation in several industrialized period in February, during March, and toward countries, including the United States and Gerthe end of April. Upward pressure abated, and many, as well as a worrisome persistence of high the dollar settled back somewhat in mid-Feb- inflation in the United Kingdom. There was also ruary and mid-April. considerable uncertainty about the extent to 1. Federal Reserve reciprocal currency arrangements THE DOLLAR SETTLES BACK IN Millions of dollars MID-FEBRUARY Amount of Institution facility, When the three-month period opened in Febru- April 28, 1989 ary, market sentiment toward the dollar was Austrian National Bank 250 distinctly bullish. Market participants, mindful of National Bank of Belgium 1,000 Bank of Canada 2,000 Chairman Greenspan's earlier indications in con- National Bank of Denmark 250 Bank of England 3,000 gressional testimony of the Federal Reserve's Bank of France 2,000 strong anti-inflationary stance, interpreted evi- Deutsche Bundesbank 6,000 Bank of Italy 3,000 dence of robust U.S. economic growth as a Bank of Japan 5,000 portent of higher dollar interest rates. In partic- Bank of Mexico 700 ular, the early February report of an unexpect- Netherlands Bank 500 Bank of Norway 250 edly large rise in U.S. employment in January Bank of Sweden 300 Swiss National Bank 4,000 reinforced expectations that a buoyant economy would lead to further tightening of U.S. mone- Bank for International Settlements Dollars against Swiss francs 600 tary policy. As the dollar firmed above its Janu- Dollars against other authorized European currencies 1,250 ary highs, the U.S. monetary authorities sold a Total 30,100 total of $350 million against marks during the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 487 which tax changes in several foreign countries RESUMPTION OF THE DOLLAR 'S ADVANCE might give rise to inflationary wage demands in IN MARCH the coming months. Against this background, market participants began to wonder whether In late February, market assessments of the efforts to subdue inflation worldwide might prove relative tightness of monetary policy in the more difficult, and require higher interest rates, United States and abroad underwent an abrupt than had previously been assumed. The manage- shift. ment of monetary policy by central banks in Questions regarding the U.S. central bank's various countries tended to come under greater counter-inflationary stance were put to rest, and market scrutiny. U.S. short-term market interest rates began to As for the United States, some market observ- edge higher when the Federal Reserve unexpecters questioned whether the successive moves edly drained liquidity from the banking system toward moderate tightening by the Federal Re- on February 23 and on the following day inserve over the past year would be sufficient to creased its discount rate Vi percentage point. prevent an acceleration of inflation. At the same Shortly thereafter, the Bundesbank appeared time, market participants expressed concern that to send a signal through its public statements and the potential economic, financial, and political money market operations that it saw no need at implications of further policy tightening might that time to tighten its policy stance. Market deter the U.S. central bank from acting as force- participants also noted the constraints on fully as needed. Bundesbank monetary policy stemming from In contrast, market analysts at that time ap- currency relationships within the European Monpeared more certain that signs of accelerating etary System (EMS). With the German mark inflation in Germany would lead to a quick tight- approaching the upper limit of its bilateral parity ening of the German central bank's policy with another EMS currency, the Danish krone, stance. This market view showed through in a further German tightening was viewed as unsignificant increase in German money market likely, and short-term mark interest rates began rates as German banks aggressively bid for funds to decline. Elsewhere, market participants interin anticipation of a near-term increase in the preted actions by both the Bank of Japan and the Bundesbank's official interest rates. Bank of England as indicating that these mone- In this environment, dollar exchange rates tary authorities were also reluctant to see further eased from their earlier levels. By February 20, increases in short-term interest rates. the dollar had declined to its period low against Observers concluded that the Federal Rethe yen of ¥125.25. Against the mark, the dollar serve's increase in the discount rate was unlikely continued to edge lower for another week, to lead to an immediate tightening of policy reaching its period low of DM1.8095 on Febru- elsewhere. With U.S. economic statistics reary 27. Even at these levels, however, the leased during the month continuing to suggest dollar remained well above where it had opened generally strong economic performance, market the year. participants expected that the recent widening of 2. Drawings and repayments by foreign central banks under special swap arrangements with the U.S. Treasury1 Millions of dollars; drawings or repayments (-) Outstanding, Outstanding, Central bank drawing Amount of January 31, February March April April 30, on the U.S. Treasury facility 1989 1989 Central Bank of the Argentine Republic 265.0 .8 -.8 * * * Central Bank of Venezuela 450.0 0 0 450.0 -450.0 0 1. Data are on a value-date basis. ^Facility expired on February 28, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 Federal Reserve Bulletin • July 1989 interest rate differentials favoring the dollar 3. Net profits or losses (-) on U.S. Treasury and would be maintained. The report that U.S. pro- Federal Reserve current foreign exchange operations, February 1-April 30, 1989' ducer prices had increased a full percentage point Millions of dollars in February, in particular, fueled expectations that dollar interest rates would remain firm. U.S. Treasury Under these circumstances, upward pressure Item Federal Exchange Reserve Stabilization on the dollar reemerged, and by mid-March the Fund dollar had more than fully recouped its February Realized 00 00 decline. As the dollar moved up against most Valuation profits and losses major currencies, the U.S. monetary authorities on outstanding assets and liabilities as of resumed selling dollars against marks on March April 30, 1989 994411..99 773344..55 8, generally operating in coordination with other 1. Data are on a value-date basis. central banks. At the same time that sentiment toward the reached its period highs of DM1.9025 against the U.S. currency was becoming more positive, sen- mark and ¥133.50 against the yen at the end of timent toward other currencies, most notably the March. At these levels, the dollar was trading Swiss franc and Japanese yen, was worsening. In about 5 percent and 6V2 percent respectively Switzerland, reports surfaced of heavy selling of above its late-February lows against these two the Swiss franc as that currency broke out of the currencies. range in which it had traded for several years against the German mark. As the Swiss currency declined, upward pressure on the dollar in- DISSIPATION OF UPWARD PRESSURE ON creased, and the dollar rose against not only the THE DOLLAR IN APRIL franc but other continental currencies as well. In Japan, the political atmosphere in March Around the time of the G-7 meeting in Washingbecame increasingly tense and uncertain as alle- ton on April 2, however, market participants gations spread of insider trading and influence began to revise their assessment of official attipeddling by prominent individuals in business tudes toward the dollar. A communique issued and politics. Reports that foreign investors were after the meeting stated that "a rise of the dollar looking to liquidate some of their Japanese bond which undermined adjustment efforts, or an exand equity holdings added to the selling pressure cessive decline, would be counterproductive." on the Japanese yen. Indeed, whereas until mid- Market participants interpreted this asymmetrimonth the dollar was advancing most strongly cal statement as a sign that the authorities reagainst the mark among the major currencies, by mained committed to resisting the dollar's rise the end of the month upward pressure had shifted but were prepared to see some decline in the to the dollar-yen exchange rate. Thus, at the end dollar. U.S. intervention sales of dollars against of March, U.S. intervention operations were yen during the previous week and market reports expanded to include dollar sales against yen. In of similar operations by the Bank of Japan after all, the U.S. monetary authorities sold $1,419 the G-7 meeting served to highlight this commitmillion against marks and $100 million against ment. So, too, did operations on April 10 and 11 yen between March 8 and March 30. when the U.S. monetary authorities were quick By the end of March, the dollar's renewed rise to reenter the market, selling a total of $170 led market participants to question the firmness million against marks, as soon as the dollar began of official commitments to exchange rate stabil- to recover from its initial decline after the G-7 ity. As an early April meeting of the G-7 Finance meeting. Ministers and Central Bank Governors ap- Around the same time, accumulating, though proached, some observers speculated that the still ambiguous, evidence that the pace of U.S. G-7 might tolerate a further rise in dollar ex- economic growth might be easing added to a change rates as a consequence of the need to deal more cautious sentiment surrounding the dollar. with inflation. In this atmosphere, the dollar In particular, a number of economic reports on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 489 April 14 suggested that earlier fears of a sharp price report that suggested that the inflationary rise in U.S. inflation might have been premature effect of Japan's new consumption tax might and that capacity pressures in the economy might prove less than initially had been feared. Simihave peaked. larly, in Switzerland, comments by a senior Meanwhile, market expectations of a possible central bank official countered the view that the tightening of monetary policy abroad began to Swiss central bank would further tighten its resurface. The announcement on April 13 that credit stance. the Swiss National Bank would increase its dis- In these circumstances, sentiment toward the count and Lombard rates drew market attention dollar again became bullish, and investmentonce again to the possibility that interest rates related purchases of dollars reportedly began to abroad might need to be raised. Around the same accelerate. With the dollar approaching the levtime, pressures within the EMS eased, and the els of its period highs of late March, the U.S. Bundesbank was thus seen as having more scope monetary authorities intervened on the last tradto tighten its credit stance if it so chose. In Japan, ing day of the period to sell $100 million, half rumors that the Bank of Japan was making against marks and half against yen. The dollar preparations to raise its discount rate also be- closed the quarterly period at DM1.8810 against came more widespread. Moreover, reports that the mark and ¥133.02 against the yen. the newly appointed German Finance Minister For the period as a whole, the U.S. monetary would seek to repeal the recently imposed with- authorities sold a total of $2,139 million, $1,989 holding tax on interest earnings from domestic million against German marks and $150 million securities lent some support to the mark against against Japanese yen. The U.S. Treasury, both the dollar and the yen. through the Exchange Stabilization Fund (ESF), When the Bundesbank in fact announced an and the Federal Reserve participated equally in increase of Vi percentage point in its discount these intervention operations. and Lombard rates on April 20, and several The U.S. authorities also acquired $228.2 milother continental European central banks lion equivalent of Japanese yen through nonmarjoined in by increasing their own official rates, ket operations. Of this amount, the authorities the dollar initially eased further. The dollar sold $99.1 million and $84.8 million equivalent of moved as low as DM1.8410 against the mark Special Drawing Rights to official institutions for and ¥130.90 against the yen, to trade VA per- yen and separately received $44.3 million equivcent and 2 percent respectively, below its alent of yen in repayments under the Supplemen- March highs. tary Financing Facility of the International Monetary Fund. Other ESF foreign currency transactions that STRONG CLOSE AT THE END OF THE took place during the period were the following: PERIOD • The Central Bank of the Argentine Republic repaid the remaining $0.8 million of its swap The dollar then quickly began to rebound. Mar- arrangement with the ESF on February 28. The ket participants, noting that the Bundesbank's $265 million facility with the ESF, part of a $500 tightening move had had only a limited effect on million short-term financing package arranged in market interest rates in Germany, reportedly October 1988, expired on February 28. began to take profits on long-mark positions • The U.S. Treasury, through the ESF, agreed to established earlier in the month. By the following establish a facility to provide up to $450 million in day, the dollar was already above the levels at short-term financing to Venezuela on March 13. which it had been trading before the German On March 15, Venezuela drew the the entire interest rate announcement. amount in the facility, and on April 3, repaid the At the same time, expectations diminished that Treasury in full. other countries would soon follow the Bundes- As of the end of April, cumulative bookkeepbank's move. Market expectations of higher in- ing or valuation gains on outstanding foreign terest rates in Japan lessened after a Japanese currency balances were $941.9 million for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 Federal Reserve Bulletin • July 1989 Federal Reserve and $734.5 million for the ESF. of instruments that yield market-related rates of These valuation gains represent the increase in return and that have a high degree of quality and the dollar value of outstanding currency assets liquidity. A portion of the balances is invested in valued at end-of-period exchange rates, com- securities issued by foreign governments. As of pared with the rates prevailing at the time the the end of April, holdings of such securities by foreign currencies were acquired. the Federal Reserve amounted to $1,503.3 mil- The Federal Reserve and the ESF regularly lion equivalent, and holdings by the Treasury invest their foreign currency balances in a variety amounted to the equivalent of $1,985.0 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

491 Industrial Production Released for publication May 15 construction supplies declined in April and, on balance, has weakened noticeably since January. Industrial production increased 0.4 percent in At 141.1 percent of the 1977 average, the total April after having been unchanged in March and index in April was 4.2 percent higher than it was having declined a revised 0.3 percent in Febru- a year earlier. Manufacturing output also rose 0.4 ary. The April rise resulted from further gains in percent in April; capacity utilization in manufacbusiness equipment and increases in the output turing edged up to 84.0 percent, but was still 0.7 of durable consumer goods, mainly motor vehi- percentage point below the January rate. Decles, and materials. In contrast, production of tailed data for capacity utilization are shown Ratio scale, 1977=100 160 Total Index Products 140 120 Materials 100 80 J L J L 160 Manufacturing Nondurable_ 140 Nondurable^ Durable Durable 120 100 Energy Intermediate Business Products supplies Construction supplies Motor Vehicles and Parts 150 135 120 90 75 60 1983 1985 1987 1989 1983 1985 1987 1989 All series are seasonally adjusted. Latest series: April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 Federal Reserve Bulletin • July 1989 1977 = 100 Percentage change from preceding month Percentage ccchhhaaannngggeee,,, Group 1989 1988 1989 AAAppprrr... 111999888888 tttooo AAAppprrr... 111999888999 Mar. Apr. Dec. Jan. Feb. Mar. Apr. Major market groups Total industrial production 140.5 141.1 .4 .3 -.3 .0 .4 4.2 Products, total 150.0 150.6 .6 .5 -.1 .1 .3 4.5 Final products 148.2 149.1 .7 .3 .2 -.1 .5 4.6 Consumer goods 137.8 138.6 1.0 .2 .1 -.6 .5 5.0 Durable 129.2 130.3 2.1 -.4 .1 -1.8 .9 5.7 Nondurable 141.0 141.6 .6 .4 .1 -.2 .4 4.8 Business equipment 165.4 166.3 .8 .8 .5 .4 .6 7.6 Defense and space 178.5 178.7 -.9 -.3 -.4 -.5 .1 -4.9 Intermediate products 156.3 155.8 .6 1.0 -.9 .7 -.3 4.1 Construction supplies 140.7 140.3 .5 .6 -1.9 .9 -.3 2.0 Materials 127.4 128.2 .0 -.1 -.6 .0 .6 3.8 Major industry groups Manufacturing 146.7 147.3 .3 .6 -.3 .0 .4 4.6 Durable 145.5 146.1 .3 .3 -.3 -.2 .4 4.6 Nondurable 148.3 148.9 .3 .9 -.3 .2 .4 4.6 Mining 102.1 103.3 .2 -1.8 -1.9 1.0 1.2 -1.4 Utilities 115.9 116.0 1.5 -1.3 2.2 -.5 .1 4.5 NOTE. Indexes are seasonally adjusted. separately in "Capacity Utilization," Federal again, reflecting continued strength in most sec- Reserve monthly statistical release, G.3. tors and a rebound in transit equipment, primar- In market groups, within consumer goods, ily motor vehicles. Materials production rose 0.6 auto assemblies increased to an annual rate of 7.4 percent in April, but was only slightly above the million units from a rate of 7.1 million units in January level. During the first quarter, most March; the output of light trucks for consumer major material sectors weakened; however, by use also advanced. Most other consumer goods April, output of these sectors, except basic metposted moderate gains. Business equipment rose als, had rebounded, and in some industries, notably chemicals, output in April was consider- Total industrial production—Revisions ably above their first-quarter averages. Estimates as shown last month and current estimates In industry groups, within manufacturing, most industries, except primary metals and the Percentage change Index (1977=100) from previous construction-related sectors, posted gains in MMoonntthh months April; the largest increases occurred in motor vehicles, paper, and petroleum products. Out- Previous Current Previous Current side manufacturing, mining output increased 1.2 Jan 141.0 140.8 .4 .3 percent, owing, in part, to a sharp increase in Feb 141.0 140.4 .0 -.3 Mar 141.0 140.5 .0 .0 coal. Production at utilities was essentially un- Apr 141.1 .4 changed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

493 Statements to Congress Statement by Martha R. Seger, Member, Board increase an already heavy regulatory burden. of Governors of the Federal Reserve System, Particularly for small institutions, the cumulative before the Subcommittee on Consumer Affairs effect of individual regulations, each well inand Coinage of the Committee on Banking, tended in its purpose to address a specific prob- Finance and Urban Affairs, U.S. House of Rep- lem, can be overwhelming. For example, just resentatives, May 16, 1989. since the beginning of last year, extensive new requirements have been mandated relating to Thank you for the opportunity to offer the com- funds availability, adjustable-rate mortgages, ments of the Board of Governors on H.R. 736, credit and charge card solicitations, and home the "Truth in Savings Act." H.R. 736 would equity lines. Each of these new regulations has require that certain information be provided to required institutions to revise or create printed existing or potential deposit account holders re- forms, adopt conforming policies and procegarding the terms of a deposit account. Deposi- dures, provide training for personnel, and, partory institutions would have to disclose rate and ticularly in the case of funds availability, make cost information in advertisements, to provide extensive data processing system changes. And, more detailed rate and cost information in a of course, these additional requirements are over schedule, and to inform account holders when and above the ongoing regulatory burdens finanterms are changed. The Board would be required cial institutions bear. to write rules to implement these requirements. Because of our experience with these recent The Board is mindful of the interest in ensuring laws—as well as with numerous other consumer that account holders have adequate information statutes for which we have rule-writing authorion which to base their saving decisions, and fully ty—we know firsthand that simple concepts insupports that concept. In fact, the Board's Reg- variably result in complex regulations. For exulation Q has, for many years, required disclo- ample, the concepts of improved funds sure of account terms in advertisements, and availability and uniform consumer credit discloinstitutions have been encouraged to make sures appeared to be simple and straightforward. schedules of their fees available to their account Yet, as history has shown, to encompass the holders. diversity of business practices and products It appears that the industry recognizes the among financial institutions, the implementing value of full disclosure as well. Our experience in regulations of necessity are intricate and volumiexamining state member banks tells us that the nous. Moreover, we have learned that even rules majority of our institutions already provide com- that are not designed to affect the number or prehensive written disclosures outlining their diversity of products—such as simple disclosure fees and the terms of their accounts. Further, requirements—may have the practical effect of consumer surveys conducted by the Board re- standardizing products. If fewer options are flect that most depositors believe that they are available, consumers may be deprived of the receiving adequate information. benefits of variety. Consequently, we believe With this as background, the Board is ambiv- that a compelling need should be demonstrated alent about H.R. 736. On the one hand, the goal before new legal requirements are added to the of the legislation is consistent with the Board's array of existing rules. objectives and with general banking practice. On In the case of account disclosures, our best the other hand, any set of complex rules of the information suggests that, by and large, institutype that will be required by this legislation will tions are providing the information that deposi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 Federal Reserve Bulletin • July 1989 tors say they need, either voluntarily or as a Language requiring the schedule to be included result of existing account advertising regulations in a "regularly scheduled" mailing should be such as Regulation Q. We would, therefore, deleted. question the need for H.R. 736 at this time, We note that the civil liability provisions of particularly because of the additional regulatory this bill are quite sweeping, and, in covering burden it would impose on depository institu- advertising, are broader than those in other contions. sumer disclosure laws such as the Truth in Lend- If the Congress nevertheless decides to go ing Act. A violation of the advertising provision forward with legislation, H.R. 736 should be of H.R. 736 would be subject to statutory penalcarefully tailored to avoid unnecessary compli- ties that would allow an individual to recover a cations and burdens. In particular, we recom- minimum of $100 and allow class actions with the mend the following actions. potential for recoveries far out of proportion to H.R. 736 would require the disclosure of an any actual harm. Further, suits could be brought "effective percentage yield" on accounts with by individuals who have no relationship with the maturities of less than one year besides the financial institution or its consumer deposit prodannual percentage yield (APY) that must be ucts other than having viewed a newspaper addisclosed for all accounts. Requiring a yield vertisement. Particularly since financial institurelating to a portion of a year would directly tions will be examined for compliance by federal conflict with the notion of APY, and would tend regulatory agencies, the Board believes that the to confuse the consumer about the return on the Congress can achieve the purposes of the legisaccount. Consumers have become accustomed lation without subjecting institutions to costly to the concept of annual percentage figures litigation by the public at large. through the "annual percentage rate" disclosed To clarify coverage, H.R. 736 should expressly in consumer credit transactions pursuant to the provide in its definition of "account" that the act Truth in Lending Act. The Board recommends applies only to consumer deposit accounts, and that disclosures in advertisements and account not to business purpose accounts. This provision schedules for a rate other than an APY on would reduce the compliance burden somewhat accounts with maturities of less than one year be and would focus the disclosures on the class of deleted from H.R. 736; alternatively, a statement depositors who might most need them. In addicould be appended to the APY that discloses that tion, H.R. 736 should make clear that the rethe "yield assumes that the funds are on deposit quirement to notify account holders of a change for a full year.'' in a term that "may reduce the yield" is not The bill would require depository institutions intended to govern a decrease in yield in accordto send "in a regular mailing" schedules of terms ance with a variable-rate term previously disand conditions to existing account holders no closed. This will avoid institutions having to mail later than 90 days after the effective date of a "change in term" notice when yields vary as a regulations implementing the act. The Board result of routine rate adjustments. believes that 90 days is too brief a period for H.R. 736 would preempt state laws relating to depository institutions to review the new regula- the disclosure of deposit account information to tion, effectively reexamine their entire deposit the extent the state law is inconsistent with the product line, and prepare, print, and mail ac- new federal law. H.R. 736 does not, however, count schedules to existing customers. In our provide a mechanism for determining if a given view, an appropriate minimum time period for state law is preempted. Similarly, the bill would mandating compliance is 180 days after the effec- allow depository institutions to rely on rules tive date of the regulation. Also, depository issued by the Board, but does not provide a institutions should be given flexibility to decide means for interpretation of formal Board actions. in what manner to mail the required schedule to To ease compliance burdens by alleviating uncertheir existing customers. For example, if a de- tainty, and to promote greater uniformity of pository institution wished to send its schedule in enforcement of H.R. 736, the Board recommends a special mailing, it should be permitted to do so. that it be given the express authority both to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 495 determine if state laws are preempted under the national brokerage firms offer certificates of deact and to authorize an official to issue interpre- posit of selected depository institutions to contations of the regulation. This follows the ap- sumers in conjunction with some of their acproach taken in other consumer financial ser- counts. While we have reservations about the vices legislation such as the Truth in Lending Act need for the bill, as a matter of equitable coverand the Electronic Fund Transfer Act. We have age we encourage the Congress to consider found that such provisions allow us to provide whether consumers should be afforded the same greater certainty about disclosure requirements protections under the act whether they deal in an efficient and flexible manner. directly with the institution of account or through Finally, while the focus of our comments has an intermediary. been on reducing the burden of regulatory com- We appreciate the opportunity to offer our pliance, we note that accounts of depository views on the proposed legislation and hope that institutions are being advertised by organizations they will be helpful to you. • that are not subject to H.R. 736. For example, Statement by H. Robert Heller, Member, Board brokered deposits pending the findings of the of Governors of the Federal Reserve System, anticipated study. After a full review of the before the Subcommittee on General Oversight relevant issues and problems, the merits of the and Investigations of the Committee on Banking, proposed legislation can be better determined. Finance and Urban Affairs, U.S. House of Rep- In my remarks today, I will briefly discuss the resentatives, May 17, 1989. extent to which financial institutions have used brokered deposits, the potential benefits and problems the deposits may present, and the I am pleased to appear before this subcommittee supervisory approach the Federal Reserve has to present the views of the Board of Governors taken toward these accounts. I will also offer on the legislative proposals to limit the use of some suggestions for strengthening the legislabrokered deposits by troubled federally insured tive proposals, should you decide to pursue this financial institutions. The Board recognizes that approach. In general, my comments will focus on the use of brokered deposits by troubled institufully insured (retail) brokered deposits that are tions can have a potentially adverse impact on either initially obtained in amounts of less than the deposit insurance system. For this reason, $100,000 or that are subsequently divided into the Board supports reasonable efforts to limit the deposits of that size. These deposits represent a use of brokered deposits by such institutions. potential for abuse and the main risk to the However, brokered funds can also improve the federal deposit insurance system. efficiency of capital markets by channelling investment funds to their optimal use and by helping institutions address short-term liquidity and funding needs. In attempting to control the ROLE OF BROKERED DEPOSITS potential abuses of brokered deposits, we must be careful to preserve their benefits. Depository institutions have used brokered de- The administration's legislative proposal to posits for several years to attract funds from address the thrift industry's problems calls for a outside their traditional geographic markets. In study that would, among other things, review the recent years, the use of these deposits has inrole of brokered deposits and the need for any creased substantially. At the end of 1984, the first limitations on the use of these funds. Thus, while year we collected data on retail brokered deposthe Board shares the concern of Congress over its, insured commercial banks held $25 billion in the use of brokered deposits by troubled institu- total brokered deposits, of which $7 billion were tions, we believe that it would be more appropri- insured retail deposits. By the end of 1988, total ate at this time to defer legislative action on brokered deposits had increased to more than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 Federal Reserve Bulletin • July 1989 $53 billion, of which $19 billion were retail. State tem. Institutions that seek rapid asset and earnmember banks, which are subject to supervision ings growth can often raise substantial funds by the Federal Reserve, held $7 billion in bro- nationwide by offering higher-than-market rates kered deposits at the end of 1988, of which $3 for insured brokered funds. To reach their billion were in the form of insured retail deposits. growth targets and to cover their high funding Savings and loan associations currently hold costs, these institutions may then invest in inabout $72 billion in brokered deposits, of which creasingly risky ventures. This could lead to $59 billion are insured. increased losses, and possibly failures, rather Over all, brokered deposits represent about 2.5 than to higher profits. As their condition depercent of all domestic deposits at commercial clines, these institutions may seek to raise addibanks and about 7.4 percent of the deposits at tional brokered funds and acquire additional savings and loans. Fully insured retail brokered high-risk, high-yielding assets. This may further deposits represent less than 1 percent of the contribute to their deterioration and raise the domestic deposits at banks and about 6 percent ultimate cost to the federal deposit insurance of the domestic deposits at thrift institutions. The fund. vast majority of depository institutions, about 90 The evidence also shows that the use of bropercent, do not make use of brokered deposits at kered deposits appears to increase the costs of all. resolving failures that do occur. An examination Much of the overall growth in these deposits of the use of brokered deposits by banks that occurred because they increased the efficiency of eventually failed indicated that failed banks with financial markets. Indeed, a significant portion of large ratios of brokered deposits to total deposits these funds are held by large banks that currently imposed greater resolution costs per dollar of meet or exceed the minimum primary capital deposits on the Federal Deposit Insurance Corstandard and that are otherwise in satisfactory poration (FDIC) than failed banks with smaller condition. Banks that specialize in credit card ratios of brokered deposits. In statistical tests, activities, those that have little or no local deposit- this relationship was highly significant. The analtaking powers, and those that are affiliates of ysis also indicates that banks that failed in 1988 much larger institutions are often active users of had higher ratios of brokered deposits in the brokered deposits. Brokered deposits contribute previous two years than banks in the same size to more open competition for depositor funds classes that did not fail. However, in the vast and increase sources of liquidity to financial majority of cases, failed banks did not make institutions. This is particularly true for organi- excessive use of brokered deposits. zations that do not otherwise have access to Clearly, bank managers can make poor investnational money markets. ments with funds from any source. They can also Most brokered deposits in commercial banks raise insured deposits directly through telephone are not federally insured and do not inherently solicitations or by advertising for the deposits raise the issue of "moral hazard," whereby nationwide—thereby avoiding brokers altoinvestors gain increased income while the gov- gether, as some institutions have done. The ernment absorbs any increased risk. Providers of critical factor is to maintain an adequate level of large amounts of uninsured funds normally have supervision over insured institutions to detect both the incentive and the capacity to evaluate and prevent undue exposure of the insurance the creditworthiness of the banks in which they system. are investing. Nonetheless, even uninsured brokered deposits can increase the risk to the insurance system if they are used to fund poor invest- FEDERAL RESERVE SUPERVISORY ments by the purchasing bank. APPROACH However, the unintended expansion of insurance coverage by troubled institutions through In recognition of the potential for abuse, the bank the use of retail brokered deposits significantly regulatory agencies began in 1983 to collect inincreases the risks to the deposit insurance sys- formation from banks about their use of brokered Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 497 funds. At that time, the Federal Reserve also held by all state member banks. Thus, regulatory developed and implemented specific procedures action by the Federal Reserve has significantly for monitoring the use of brokered deposits by curtailed the use of brokered deposits in troubled state member banks and for taking actions to state member banks. detect and deter abusive actions involving such funds. These procedures involve the monitoring of changes in the level of an institution's bro- PROPOSED LEGISLATION kered funds and an identification of the use of these funds. When appropriate, excessive use As we understand it, the proposed House bill can trigger an onsite credit evaluation or a full- would prohibit a bank or thrift institution that scope examination. does not meet minimum capital standards from An evaluation of the use of brokered deposits increasing its use of brokered deposits. Howis also part of all onsite examinations. In light of ever, the legislation appears to permit instituthe potential risks that these deposits present, tions to maintain existing levels of brokered examiners focus on various aspects of asset deposits through the "rollover" or renewal of quality and growth rates in banks with substan- such accounts. The Senate version would liketial use of brokered funds. Specifically, when wise grandfather existing brokered deposits in brokered deposits exceed 5 percent of total de- troubled institutions, but would otherwise proposits, or are otherwise of concern, examiners hibit the use of brokered deposits, including are required to evaluate the bank's use of such existing deposits if they are subsequently indeposits, the role they have in the bank's overall creased or renewed. funding strategy, their effect on the condition of Both versions of the legislation define troubled the bank, the quality of the loans funded by institutions as federally insured financial instituthem, and other relevant factors. tions that do not meet minimum capital require- Examiners also review the activities of banks ments according to the FDIC. Both versions that place deposits with money brokers to ensure would also allow the FDIC to waive these restricthat they have exercised appropriate credit judg- tions after finding that accepting such deposits ment. Deficiencies in this area can constitute an does not constitute an unsafe or unsound banking unsafe or unsound banking practice. practice. Virtually all formal enforcement actions under- The Senate approach would appear to reduce taken by the Federal Reserve against state mem- or eliminate the use of brokered deposits by ber banks that involve issues of safety and troubled institutions more quickly than the soundness include provisions relating to the use House bill. It would do so by, in effect, prohibof brokered deposits. These provisions typically iting the renewal of brokered accounts. At the require the banks to give prior notice to the same time, this approach could create significant Federal Reserve before acquiring further bro- liquidity pressures for troubled institutions that kered deposits and to provide periodic informa- rely heavily on brokered funds, unless they retion about the intended and actual use of the ceive supervisory waivers. Without such waivfunds. The Federal Reserve may halt those plans ers, these institutions would need to find alternawhen considered appropriate. tive sources of funds or could be forced to the Active enforcement of these procedures has discount window. In either event, their liquidity enabled the Federal Reserve to minimize the use problems would surface earlier and could be of brokered deposits among problem state mem- resolved more quickly, either by forcing them to ber banks.1 At the end of 1988, problem banks reduce their size or to cease operations. held only $25 million of brokered deposits—less As I have already stated, the Board believes than Vi of 1 percent of the total brokered deposits that the Congress should defer any legislative action on brokered deposits pending the results of the proposed study of the deposit insurance 1. Problem banks are institutions that have been rated 4 or system. However, if the Congress chooses to 5 under the rating system used by federal bank regulatory proceed with these legislative proposals at this agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 Federal Reserve Bulletin • July 1989 time, the Board would recommend four changes Four, we believe that any legislation that is to render the legislation more effective. adopted should cover all insured financial insti- One, as currently drafted, the legislation gives tutions. However, as currently drafted the proto the FDIC the authority to determine if an posed restriction would apply only to banks institution does not meet minimum capital stan- because of the manner in which "deposit brodards, as well as the authority to grant any ker" is defined. waivers on the legislation's brokered funds restrictions. We strongly believe that in the case of commercial banks it would be more appropriate and consistent with the current supervisory CONCLUSION structure to assign these responsibilities to the bank's primary federal regulator, rather than to In summary, the Board supports vigorous efforts the insuring agency. The primary supervisor sets to restrict the use of brokered deposits in trouthe capital standards for commercial banks under bled depository institutions. Indeed, while the its jurisdiction and is the appropriate agency for Federal Reserve has been generally successful in determining whether a bank meets the minimum limiting the misuse of brokered deposits in state capital standard. The primary supervisor should member banks, we recognize the potential for also have the authority to grant waivers, since it abuse of the insurance system that they may is the agency whose longstanding supervision of present. In this regard, we believe the legislative the bank best enables it to assess the potential proposals contained in the House and Senate risks stemming from the institution's use of bro- bills properly focus on restricting the use of kered deposits. brokered deposits by troubled institutions, while Two, Congress may also wish to consider avoiding unnecessary limitations on the prudent whether the definition of "troubled institution" use of such funds by sound banks and thrift should be expanded to include factors other than institutions. the capital ratio. The relative level of problem We also believe, however, that the use of loans and other measures of overall financial brokered funds by depository institutions raises strength may be important factors to be considered. several complex issues and questions. For this Three, the Board notes that the proposed reason, we believe it would be more appropriate legislation is directed at all brokered funds. Since to defer legislative action at this time and to await insured brokered deposits have been the princi- the outcome of the anticipated study of the pal source of concern, the Congress might con- deposit insurance system, which will include a sider focusing any legislation only on those de- detailed review of the advantages and disadvanposits. tages of brokered deposits. • Statement by Glenn E. Loney, Assistant Direc- nated flood hazard areas. I appreciate the opportor, Division of Consumer and Community Af- tunity to discuss the Board's examination procefairs, Board of Governors of the Federal Reserve dures, as well as our examination experience in System, before the Subcommittee on Policy Re- this area. search and Insurance of the Committee on Bank- As you may know, the regulatory provisions ing, Finance and Urban Affairs, U.S. House of for the flood insurance requirements for state Representatives, May 31, 1989. member banks are in the Federal Reserve Board's Regulation H, the regulation that gov- Thank you for inviting me to speak to you about erns membership in the Federal Reserve System. the Federal Reserve System's enforcement of the I believe that the placement of flood insurance mandatory flood insurance purchase require- provisions in the membership regulation emphaments for mortgages secured by improved real sizes the importance the Board places on this estate and manufactured homes located in desig- area. Specifically, these flood insurance require- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 499 ments are detailed in the "Banking Practices" Third, our examiners use the interagency flood section of the regulation. This section lists prac- insurance examination procedures developed by tices considered generally unsafe and unsound the Federal Financial Institutions Examination for state member banks. Including the mandatory Council. These procedures, which were reflood insurance provisions in this section indi- viewed and updated last summer, require examcates to present, as well as potential state mem- iners to review loan originations, extensions, and ber banks, that the Board expects its members to renewals secured by improved real estate or comply with these provisions. manufactured homes. Specifically, Federal Re- Before I discuss the Federal Reserve's experi- serve System examiners review a sample of loans ences with the mandatory flood insurance pur- made within 30 days of the date of the examinachase requirements, I would like to tell you a tion. We use a 30-day sample period to obtain an little about the structure of the Board's compli- adequate sample of loans that is reflective of ance examination program and how the flood current bank policy. insurance provisions are handled by our examin- The Board's sampling procedures instruct exers. aminers to expand sample sizes whenever neces- First, the Federal Reserve Board has had a sary to reach a conclusion about whether the cadre of specialized consumer compliance exam- bank is in compliance. For example, if the bank iners since 1977. The twelve Federal Reserve under examination made few real estate loans Banks hire and manage the day-to-day activities during the sample period, the examiner would of the examiners while the Board exercises gen- extend the sample period back several months to eral policy oversight and management of the obtain an adequate sample size. In fact, because program. I mention this to let you know that our of the small asset size of, and correspondingly examiners who deal with the flood insurance low volume of real estate loans extended by most provisions are full-time specialists in their field state member banks, our examiners often expand who are operating in an ongoing professional the sample sizes of real estate loans. program. These examiners are well-versed in all To illustrate the relatively small percentage of aspects of the consumer regulations, including lending covered by the flood insurance provision those for flood insurance. engaged in by the banks we directly supervise, I Second, we examine state member banks for would point out that a large number of the compliance with the consumer laws at least once approximately 1,100 state member banks are every 24 months. The actual interval between small or rural banks with relatively small real examinations of a particular bank will vary, de- estate lending portfolios. Only 5 percent of the pending on its compliance posture as reflected in institutions reporting Home Mortgage Disclosure its most recent examination. Banks with lesser Act (HMDA) data for 1987 were state member compliance records, of course, are examined banks. These banks made less than 3 percent of more frequently. We have also offered an educa- the home purchase loans and less than 4 percent tional advisory service for member banks expe- of the total of all other categories of the HMDA riencing difficulties in any area of the compliance loans reported. I mention this to indicate that program. Through this service, member banks while our efforts to enforce the flood insurance have requested an examiner's assistance with provisions have been effective, the loan volume any compliance difficulties it is experiencing, of the banks we examine, compared with that of outside a regularly scheduled examination. The other lending institutions, is small. strong compliance background of our examiners, To check on flood insurance policy renewals, the frequency with which we examine banks examiners are instructed to refer to work papers under our supervisory authority, and the open from the previous examination report for a list of communication between our Reserve Banks and loans requiring flood insurance that were reour state member banks, we believe, have con- viewed during the last examination. These loan tributed to the prompt corrective action that is files are then to be reviewed to see whether a usually taken by state member banks and the current flood insurance policy is in effect. In improved compliance posture that ensues. addition, examiners are also instructed to review Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 Federal Reserve Bulletin • July 1989 any refinanced loans that may be included in the examination procedures and techniques in a normal statistical sample to see that any neces- classroom setting, rather than in the field under sary flood insurance policy renewal was pur- the tight constraints of an examination deadline. chased. We have found this training approach to be an Based on our examination experience, we effective means of teaching examination procehave found state member bank compliance with dures and techniques. the flood insurance provisions to be good. For Besides teaching the flood insurance requireexample, of the 639 banks examined for compli- ments in the Board's consumer examinations ance in 1988, 530 banks, or 83 percent, had no schools, staff members also teach the flood insurflood insurance violations. The majority of the ance provisions in one of the Board's commercial violations that were cited involved the bank's examination schools. Although examination refailure to document adequately that a flood check sponsibility for this area rests with the consumer had been performed. Upon further review, how- compliance examiners, we believe that alerting ever, examiners found few cases in which flood the commercial examiners to the need for flood insurance should have been purchased and was insurance on all types of properties, including not. Examination data for 1987 and 1986 are commercial real estate located in a flood plain, similar. In fact, 78 percent of all banks examined will help ensure that state member banks comply in 1987, and 81 percent of those examined in 1986 with the mandatory purchase requirements. had no flood insurance violations. To ensure that the Reserve Banks are imple- Fourth, to ensure that System examiners un- menting all the consumer regulations uniformly derstand the importance of flood insurance, we and effectively, Board staff members regularly provide extensive training in this area. During review compliance examination reports prepared the Board's formal three-week basic consumer by the Reserve Banks, participate in field examcompliance examinations school, System exam- inations, and also review Reserve Bank compliiners are taught the flood insurance requirements ance examination work papers in conjunction contained in Regulation H, as well as the practi- with regularly scheduled operations reviews of cal applications of how to determine whether the the Reserve Banks. As part of the Board's norimproved real property or manufactured home mal oversight function, staff members routinely securing a loan is located in a flood hazard area. compare and analyze data on examination hours This training enables our examiners to conduct and numbers of violations found, as well as the their own independent determinations of whether types of violations discovered by each Federal flood insurance is necessary for the loans sam- Reserve District. Discrepancies noted in the use pled during the examination. For example, our of our work papers or the interagency examinaexaminers learn how to use flood maps, and tion procedures are brought to Reserve Bank community status books, as well as other meth- management's attention as necessary. In addiods for determining whether property is located tion, staff members regularly participate in the in a flood hazard area. Incidentally, I might add, workshops and conferences that FEMA holds for we use training materials developed by the Fed- the financial institution regulatory agencies. Reeral Emergency Management Agency (FEMA) serve Banks have also participated in FEMA's as part of our curriculum. flood awareness campaigns by distributing To reinforce classroom lectures, each student FEMA material to state member banks. I menin our school is required to participate in con- tion these matters to indicate that our program ducting a "mock examination" as part of the does not stop with the examiner or the examinacurriculum. For this mock examination, the stu- tion report and that we have tried to manage this dents use the interagency examination proce- effort effectively and stay current regarding dedures for flood insurance, along with our work velopments in this area. papers, to review the mock loan files for viola- The System has been stressing the importance tions of the flood insurance provisions and other of complying with the flood insurance requireconsumer regulations. This approach allows ex- ments over the years. As it does for all of its aminers to resolve many of their questions about examination responsibilities, the Board takes its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 501 responsibilities for enforcing the flood insurance amination process is satisfactorily addressing the provisions seriously. While there is always room mandatory flood insurance purchase requirefor improvement, I believe that the few viola- ments and that the banks we supervise are adetions that we have noted during our examinations quately addressing their responsibilities under indicate that the Federal Reserve System's ex- this law. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON MARCH 28, 1989 After a weather-related surge in January, housing starts fell in February to a level somewhat below 1. Domestic Policy Directive their average in the fourth quarter. Growth in consumer spending moderated in Information reviewed at this meeting suggested January and February. Purchases of cars and that activity in the nonfarm economy expanded light trucks fell back considerably, and the appreciably further in the first quarter. Gains in unusually warm weather held down expendijobs and personal income were sizable in the first tures on heating bills. Outlays for goods other two months of the year. The available indicators than motor vehicles changed little, while puron domestic demand presented a mixed picture, chases of nonenergy services posted another but preliminary data for January suggested some sizable rise. improvement in the external sector. The latest Indicators of business capital spending sugprice data indicated some pickup in inflation from gested a rebound from a decline in the fourth recent trends, only in part reflecting jumps in quarter. Shipments of nondefense capital goods food and energy prices. excluding aircraft were well above the fourth- Total nonfarm payroll employment rose mark- quarter level in January and February. Nonresiedly further in January and February after strong dential construction activity rose strongly for a gains in the fourth quarter. The rise was paced by second month in January, with gains recorded in continuing steady advances in service-producing almost all categories of building. Petroleum drillindustries. Appreciable increases in factory and ing, which declined through much of last year, construction jobs also were recorded over the appeared to be stabilizing. Inventory investment two months, but unusually mild winter weather in the manufacturing sector picked up in early contributed to a bunching of construction em- 1989. Much of the rise was recorded in the ployment gains in January followed by some aircraft industry, where work-in-progress invenretrenchment in February. The civilian unem- tories were growing in reflection of booming ployment rate fell to 5.1 percent in February. production, and in nonelectrical machinery, Industrial production was unchanged in Feb- where computer demand had flattened out in the ruary after rising considerably over the previous fourth quarter. At the retail level, the pace of several months. A reduced rate of automobile non-auto inventory investment generally reassemblies and weakness in the output of mate- mained in line with the pattern of sales. rials contributed to the leveling of industrial Producer prices of finished goods rose sharply activity. In other areas, production gains were in both January and February, mostly reflecting well maintained for consumer goods, and the higher prices for food and energy, but prices of a output of business equipment rose rapidly fol- broad range of other finished goods also inlowing weakness in the fourth quarter. Total creased at a faster rate. Among intermediate industrial capacity utilization edged down in Feb- materials, prices continued to rise at a substantial ruary. Despite appreciable drops in utilization pace. Excluding food and energy, consumer rates in primary metals, petroleum products, and prices advanced in January and February at a paper, these industries continued to operate at rate a shade above the average for 1988. Revised relatively high levels. In manufacturing, the op- data for labor costs in the fourth quarter and the erating rate moderated a bit but remained high. limited data available for early 1989 continued to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

503 suggest that these costs remained under upward tween borrowing and the federal funds rate that pressure. had complicated open market operations for After a considerable increase in the fourth many months persisted during the intermeeting quarter of last year, the nominal U.S. merchan- period. Adjustment plus seasonal borrowing condise trade deficit narrowed in January, according tinued to fall considerably short of expectations to preliminary estimates. The value of imports in relation to the federal funds rate and, as declined substantially, reflecting an apparent re- contemplated by the Committee, operations conversal of the strong rise in non-oil imports that tinued to be implemented with some flexibility. had occurred in the fourth quarter. The value of In light of accumulating indications of additional exports also declined, but by less than that for weakness in borrowing demands relative to earimports, with decreases recorded in almost all lier patterns, the borrowing assumption was major trade categories. Economic growth slack- adjusted downward in the maintenance period ened in most of the major foreign industrial beginning March 9. This technical adjustment nations in the fourth quarter, but data available was made to bring the assumed level of borrowso far in 1989 did not indicate further slowing. ing in line with recent experience and with de- In foreign exchange markets, the trade- sired overall conditions in reserve markets. Adweighted value of the dollar in terms of the other justment plus seasonal borrowing averaged about G-10 currencies rose somewhat on balance over $450 million in the three reserve maintenance the intermeeting period. The dollar was under periods ending during the intermeeting interval. downward pressure through most of February, The tightening of monetary policy along with partly in response to unexpectedly large in- growing market concerns about inflation led to creases in U.S. price indexes. After the Federal sizable increases in interest rates during this Reserve Board approved an increase in the dis- period. In short-term markets, rates on most count rate on February 24, the dollar rebounded private issues rose nearly 1 percentage point, as U.S. short-term interest rates rose relative to somewhat more than the increase in the federal key foreign interest rates. funds rate, and the prime rate was raised in two At its meeting on February 7-8, the Commit- steps of Vi percentage point. Rates on Treasury tee adopted a directive calling for no immediate bills moved up appreciably less, at a time when change in the degree of pressure on reserve there was no overall growth in the size of the positions. It was agreed that policy would be weekly auctions and the supply available for tightened promptly if incoming information competitive awards was reduced by substantial tended to confirm expectations of growing infla- retail demand through noncompetitive tenders. tionary pressures. The contemplated reserve In longer-term debt markets, yields generally conditions were expected to be consistent with were up about lA to V2 percentage point, but growth of M2 and M3 at annual rates of about 2 yields on fixed-rate mortgages rose somewhat and 3j/2 percent respectively over the period from more. Major indexes of stock prices declined December through March. somewhat over the intermeeting period. In the context of incoming data tending to After weakening appreciably in January, reinforce earlier evidence of mounting inflation, growth of M2 and M3 strengthened in February the Manager for Domestic Operations adjusted and was estimated to have picked up further in the provision of reserves in mid-February to March. On balance, however, the expansion of incorporate a higher level of adjustment plus both aggregates had remained quite subdued this seasonal borrowing. Subsequently, on February year, apparently reflecting increases in short- 24, the Board approved an increase in the dis- term market rates that had widened the opportucount rate from 6V2 percent to 7 percent. The nity costs of holding deposits. In addition, the federal funds rate moved up from about 9 to 9Vs outflows of funds and other adjustments associpercent at the time of the February meeting to an ated with the problems of financially troubled average a little above 93A percent from late thrift depository institutions probably reduced February to late March. slightly the growth of the broader monetary aggregates. On average in the first quarter, The uncertainties about the relationship be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 Federal Reserve Bulletin • July 1989 growth of M2 was a little below the Committee's volved. Indeed, in the view of many members, earlier expectations, while that of M3 was close the economy retained considerable momentum to expectations. The levels of M2 and M3 in and there was a substantial risk that without March were estimated to be respectively, a little further policy action the expansion might not below and a little above the lower bounds of the slow sufficiently to relieve inflationary pressures. Committee's 1989 ranges for those aggregates. Others believed that policy already might have Ml apparently declined on balance in the first been tightened sufficiently to contain price presquarter, while total domestic nonfinancial debt sures in 1989 and to permit progress to be made grew at a rate near the midpoint of the Commit- over time in bringing inflation under control. In tee's monitoring range for the year. addition to the indications of possible moderation The staff projections prepared for this meeting in the expansion, these members pointed to the suggested that the expansion in the nonfarm sluggish growth of the monetary aggregates and economy was likely to moderate appreciably to the recent increases in interest rates and in the during 1989. The projections assumed that the exchange value of the dollar as consistent with a drought had ended and that normal growing less robust economy and a less inflationary enviconditions would prevail in agriculture this year. ronment over time. The staff anticipated somewhat faster increases In their review of specific developments bearin consumer prices and further cost pressures ing on the economic outlook, members reported over the year ahead, especially because of re- that the expansion continued to display considduced margins of unutilized labor and other erable vigor in many regions of the country, production resources. A monetary policy to con- while at least modest overall improvement was tain inflation necessarily would involve slower occurring in some previously depressed areas. At growth of overall demand and an easing of pres- the same time, many business contacts around sures on resources; to the extent the strength in the country provided indications of marginally demand were to persist, such a policy could less ebullient business conditions or business imply additional pressures in financial markets. expectations. Manufacturing continued to bol- On that basis, the staff projected slower growth ster economic activity in many regions and was in consumer spending and in business fixed in- in turn buttressed by sales in export markets. vestment than had occurred in 1988 and some Another positive factor was the apparent abdecline in housing construction. Foreign trade sence of excessive inventories in most industries was expected to make a smaller contribution to relative to current sales. Some members referred growth in domestic output than it did in 1988. It to strength in the agricultural sector, although was assumed that fiscal policy would become concerns about drought conditions were growing somewhat more restrictive over the year. in some regions. With regard to developments In the Committee's discussion of the economic pointing to reduced economic expansion, several situation and outlook, members focused on re- members referred to signs that the growth in cent indicators of business activity that pointed consumer spending had moderated, but it also at least tentatively to some moderation in the rate was noted that the recent softness in the major of economic growth. The members agreed that automobile component had followed a spurt in the extent and possible duration of any slowing in late 1988 and might be reversed later. Some the expansion were subject to a great deal of slowing in the growth of consumer spending was uncertainty, and that more time was needed to deemed to be desirable to assure satisfactory assess whether recent developments augured for economic performance, given the need to ease a sustained period of reduced expansion. The inflationary pressures on labor and capital remost recent softening in some of the economic sources while accommodating continuing gains data reflected at least in part a normal adjustment in exports. In addition, the rise in mortgage rates to unusual, weather-related strength at the start together with reduced investor demand had of the year and thus did not provide a firm basis dimmed the outlook for housing, although unfor concluding that more than a pause, such as usual weather early this year made developments often occurs during an expansion, might be in- in this sector of the economy especially difficult Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 505 to assess. Prospects for business investment and the desirability of waiting to see if the were tempered by ongoing indications of weak tentative indications of some slowing in the exconstruction activity in many areas and by some pansion signaled the start of a sustained period of softness in new orders for business equipment. slower economic growth and reduced inflation- However, overall spending on business equip- ary pressures. Because of the usual lags in the ment was being well maintained and some re- impact of monetary policy on the economy and bound in total business fixed investment ap- prices, the full effect of the firming in 1988 had peared likely after the slowdown in the latter part not yet been felt, much less the effect of the of 1988. On the whole, the expansion, while substantial further policy tightening this year. apparently moderating, showed few signs of the Other members, while willing to accept an unkinds of imbalances that might lead to substantial changed policy for now, preferred an immediate or cumulative weakening. move to further restraint. They gave more weight The members recognized that the appreciation to the possibility that the current slowing of the of the dollar over the past year, a byproduct of expansion might be inadequate to restrain inflareliance on monetary policy to resist inflationary tionary pressures, and they felt that additional pressures, would help to damp price increases. restraint should be implemented promptly to On the other hand, a stronger dollar implied provide better assurance that sufficient monetary slower progress in reducing the nation's trade restraint was in place. deficit. Nonetheless, many domestic industries Most members endorsed the view that, in the remained competitive in world markets at cur- absence of unexpected developments, policy imrent dollar exchange rates, and further growth in plementation should resist any perceptions that exports was seen as a reasonable expectation, at monetary policy might be easing. A number also least over the quarters immediately ahead. commented that they would not oppose some As at earlier meetings, the members gave further small rise in money market interest rates. considerable attention to the outlook for infla- More generally, a majority of the members felt tion. Recent large increases in key price indexes that policy implementation over the intermeeting were disappointing, if not entirely unexpected, period should be adjusted more readily and and depending on the performance of the volatile promptly toward greater restraint than toward food and energy sectors, the rate of inflation ease. Some who preferred an immediate move to might well remain relatively high over the near more restraint indicated that such an understandterm. Labor market conditions remained tight in ing would make an unchanged policy acceptable many areas, especially for skilled workers, and to them at this time. Other members preferred many business contacts reported pressures on not to bias the approach to intermeeting adjustboth labor and nonlabor costs. There also were ments although all but one could accept an indications that businesses were finding it less asymmetric directive. A number of members difficult to pass on rising costs by increasing urged caution in implementing any policy prices, although efforts to meet competitive pres- change; in particular, they wanted to avoid resures by curbing costs were continuing. At the acting to a single new piece of information and same time, historical experience suggested that a preferred instead to wait for evidence to accumusustained pickup of inflation was unlikely in light late on the possible need for a further tightening of the reduced rate of money growth that had of policy. been experienced for an extended period, espe- The members took account of a staff projection cially if such growth were to continue to be that indicated that with unchanged reserve conrelatively restrained. ditions, expansion of M2 and M3 was likely to In the Committee's discussion of policy imple- remain subdued during the second quarter, almentation for the intermeeting period ahead, a though such growth probably would be somemajority of the members expressed a clear pref- what faster than in the current quarter. The erence for maintaining unchanged conditions of expansion in these monetary aggregates was reserve availability. They emphasized the uncer- likely to continue to be held back by the relatainties surrounding the current business outlook tively slow adjustment of offering rates on liquid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 Federal Reserve Bulletin • July 1989 deposit accounts in response to the increases that persisting uncertainty in the relationship between had occurred in market interest rates. Addition- the demand for borrowed reserves and the fedally, developments at thrift institutions might eral funds rate. continue to depress growth of the broad aggre- At the conclusion of the meeting, the following gates, but probably by less than in the first domestic policy directive was issued to the Fedquarter, assuming no new developments that eral Reserve Bank of New York: aggravated depositor concerns. On a cumulative basis from the fourth quarter to June, the projec- The information reviewed at this meeting suggests tion implied expansion of M2 at a rate just below that activity in the nonfarm economy has expanded the lower bound of the Committee's 3 to 7 appreciably further in the current quarter. After strong percent range for the year, while expansion of gains in the fourth quarter, total nonfarm payroll M3 would be in the lower half of the Committee's employment rose markedly further in January and February. The civilian unemployment rate fell consid- 3V2 to IVi percent range. A number of members erably to 5.1 percent in February. Industrial producstressed that slow monetary growth was a desirtion was unchanged in February after rising substanable development in current circumstances, but tially over the previous several months. After a some also expressed concern that the slowing weather-related surge in January, housing starts fell in could be overdone. February to a level somewhat below their average in the fourth quarter. Growth in consumer spending In light of the tightening of reserve conditions moderated in January and February. Recent indicators that had occurred since the February meeting of business capital spending suggest a rebound after a and the related increase in the federal funds rate, decline in the fourth quarter. The nominal U.S. merthe members decided to raise the intermeeting chandise trade deficit was larger in the fourth quarter than in the third quarter; the preliminary estimate of range for the federal funds rate 1 percentage point the deficit for January was smaller than the average for to 8 to 12 percent. Such an increase implied that the fourth quarter. The latest information on prices the expected federal funds rate would average suggests some pickup in inflation from recent trends. closer to the middle of the range. That range Interest rates in both short- and long-term markets provides one mechanism for initiating consulta- have risen considerably since the Committee meeting tion of the Committee when its boundaries are in early February. On February 24 the Federal Reserve Board approved an increase in the discount rate persistently exceeded. from 6V2 to 7 percent. In foreign exchange markets, At the conclusion of the Committee's discusthe trade-weighted value of the dollar in terms of the sion, all but one member indicated that they other G-10 currencies rose somewhat on balance over favored or could accept a directive that called for the intermeeting period. maintaining the current degree of pressure on Growth of M2 and M3 strengthened in February and apparently picked up further in March; over the first reserve positions and that provided for giving quarter such expansion was about in line with Comparticular weight to potential developments that mittee expectations. Ml appears to have declined might require some firming during the intermeet- marginally since December. ing period. Accordingly, some added reserve The Federal Open Market Committee seeks monerestraint would be acceptable, or some slight tary and financial conditions that will foster price stability, promote growth in output on a sustainable lessening of reserve pressure might be acceptbasis, and contribute to an improved pattern of interable, over the intermeeting period depending on national transactions. In furtherance of these objecindications of inflationary pressures, the strength tives, the Committee at its meeting in February estabof the business expansion, the behavior of the lished ranges for growth of M2 and M3 of 3 to 7 monetary aggregates, and developments in for- percent and V/2 to IV2 percent, respectively, measured from the fourth quarter of 1988 to the fourth quarter of eign exchange and domestic financial markets. 1989. The monitoring range for growth of total domes- The reserve conditions contemplated by the tic nonfinancial debt was set at 6V2 to IOV2 percent for Committee were expected to be consistent with the year. The behavior of the monetary aggregates will growth of M2 and M3 at annual rates of around 3 continue to be evaluated in the light of movements in percent and 5 percent respectively over the their velocities, developments in the economy and financial markets, and progress toward price level three-month period from March to June. It was stability. understood that operations would continue to be In the implementation of policy for the immediate conducted with some flexibility in light of the future, the Committee seeks to maintain the existing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 507 degree of pressure on reserve positions. Taking ac- tors of the economy, the level of the dollar in count of indications of inflationary pressures, the foreign exchange markets, and the continued strength of the business expansion, the behavior of the growth of the economy. monetary aggregates, and developments in foreign exchange and domestic financial markets, somewhat greater reserve restraint would, or slightly lesser re- 2. Authorization for Domestic Open serve restraint might, be acceptable in the intermeet- Market Operations ing period. The contemplated reserve conditions are expected to be consistent with growth of M2 and M3 Effective March 29, 1989, the Committee apover the period from March through June at annual rates of about 3 and 5 percent, respectively. The proved a temporary increase of $2 billion, to $8 Chairman may call for Committee consultation if it billion, in the limit between Committee meetings appears to the Manager for Domestic Operations that on changes in System Account holdings of U.S. reserve conditions during the period before the next government and federal agency securities that is meeting are likely to be associated with a federal funds specified in paragraph 1(a) of the Authorization rate persistently outside a range of 8 to 12 percent. for Domestic Open Market Operations. The increase was effective for the intermeeting period Votes for this action: Messrs. Greenspan, Corrigan, Angell, Guffey, Heller, Johnson, Keehn, ending with the close of business on May 16, Kelley, LaWare, Melzer, and Syron. Vote against 1989. this action: Ms. Seger. Votes for this action: Messrs. Greenspan, Cor- Ms. Seger supported the decision to keep rigan, Angell, Guffey, Heller, Johnson, Keehn, policy unchanged in the period immediately Kelley, LaWare, Melzer, Ms. Seger, and Mr. ahead, but she could not accept a directive that Syron. Votes against this action: None. allowed intermeeting adjustments to be made more readily in a firming than in an easing This action was taken on the recommendation direction as new information became available. of the Manager for Domestic Operations. The The lagged effects of the substantial tightening Manager had advised that the usual leeway of $6 that had been implemented earlier coupled with billion for changes in System Account holdings current indications of slower economic growth might not be sufficient over the intermeeting suggested that policy already had been tightened period because of seasonal increases in currency enough to lead to lower inflation over time. in circulation and in required reserves and a large Under current circumstances, further firming rise in Treasury balances at the Federal Reserve carried substantial risks to interest-sensitive sec- Banks after the tax payment date in mid-April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 Announcements REVISIONS TO MONEY STOCK DATA by summing currency, demand deposits, other checkable deposits (OCDs), and traveler's checks, Measures of the money stock were revised in each seasonally adjusted separately. Seasonally February of this year to include changes in adjusted M2 is calculated by adjusting its non-Mi annual benchmarks and seasonal factors. Data in component as a whole, and seasonally adjusted M3 tables 1.10 and 1.21 in the statistical appendix to by adjusting its non-M2 component as a whole. the BULLETIN reflected these changes beginning More detail on the revisions is available in the with the issue for April 1989. H.6 release, "Money Stock, Liquid Assets and Deposits of commercial banks and thrift institu- Debt Measures," dated February 9, 1989. Histions were benchmarked using call report data torical data are available from the Money and through June 1988 and also incorporate revisions Reserves Projections Section, Division of Monfrom other sources. Changes in seasonal factors etary Affairs, Mail Stop 75, Board of Governors were based on the X-l 1-ARIMA procedure used in of the Federal Reserve System, Washington, recent years. Seasonally adjusted Ml is constructed D.C. 20551. 1. Monthly seasonal factors used to construct Ml, M2 and M3, January 1988-March 1990 Nontransactions NNoonnbbaannkk DDeemmaanndd OOtthheerr components YYeeaarr aanndd mmoonntthh CCuurrrreennccyy ttrraavveelleerr''ss cchheecckkaabbllee ddeeppoossiittss cchheecckkss ddeeppoossiittss in M2 in M3 only 1988—January .9924 .9229 1.0225 1.0089 1.0018 .9973 February .9886 .9435 .9688 .9888 1.0010 1.0007 March .9922 .9600 .9706 .9970 1.0019 1.0018 April .9962 .9576 1.0061 1.0267 1.0014 .9937 May 1.0008 .9684 .9825 .9950 .9985 .9994 June 1.0052 1.0446 1.0050 1.0023 .9996 .9974 July 1.0079 1.1317 1.0093 .9971 1.0014 .9926 August 1.0043 1.1307 .9970 .9962 1.0004 1.0002 September .9970 1.0709 .9952 .9959 .9983 1.0056 October .9967 1.0024 .9996 .9910 .9998 1.0018 November 1.0039 .9451 1.0081 .9961 .9986 1.0079 December 1.0145 .9186 1.0356 1.0049 .9972 1.0025 1989—January .9926 .9232 1.0227 1.0087 1.0016 .9967 February .9889 .9453 .9681 .9885 1.0012 1.0005 March .9923 .9619 .9703 .9971 1.0020 1.0016 April .9963 .9582 1.0064 1.0269 1.0015 .9931 May 1.0009 .9687 .9825 .9953 .9986 .9992 June 1.0052 1.0453 1.0050 1.0025 .9997 .9975 July 1.0078 1.1301 1.0094 .9972 1.0014 .9931 August 1.0041 1.1294 .9972 .9963 1.0004 1.0008 September .9969 1.0710 .9950 .9961 .9983 1.0055 October .9965 1.0026 .9997 .9911 .9997 1.0018 November 1.0039 .9447 1.0081 .9957 .9986 1.0087 December 1.0145 .9185 1.0354 1.0044 .9970 1.0024 1990—January .9927 .9237 1.0229 1.0086 1.0014 .9962 February .9890 .9462 .9679 .9884 1.0013 1.0001 March .9923 .9625 .9703 .9974 1.0022 1.0013 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

509 2. Monthly seasonal factors for selected components of the monetary aggregates, January 1988-March 1990 Commercial bank deposits Thrift institution deposits Year and month Small- Large- Small- Large- Savings denomination denomination Savings denomination denomination time time time time 1988—January .9924 1.0040 .9996 .9865 1.0065 1.0061 February .9893 1.0031 .9993 .9844 1.0063 1.0047 March .9953 1.0015 1.0045 .9941 1.0043 .9994 April 1.0030 .9957 .9950 1.0026 1.0010 .9916 May 1.0061 .9928 .9973 1.0058 .9947 .9943 June 1.0098 .9957 .9959 1.0119 .9939 .9903 July 1.0127 .9991 .9926 1.0162 .9978 .9885 August 1.0050 .9995 1.0016 1.0080 .9963 .9957 September .9985 1.0013 1.0057 1.0031 .9959 1.0026 October 1.0022 1.0009 1.0043 1.0055 1.0009 1.0107 November .9972 1.0030 1.0031 .9964 1.0007 1.0100 December .9886 1.0023 1.0018 .9865 1.0003 1.0068 1989—January .9919 1.0045 .9990 .9855 1.0065 1.0068 February .9891 1.0039 .9996 .9836 1.0072 1.0050 March .9956 1.0022 1.0040 .9933 1.0050 .9993 April 1.0031 .9959 .9946 1.0028 1.0015 .9914 May 1.0065 .9925 .9969 1.0063 .9948 .9936 June 1.0099 .9955 .9962 1.0125 .9937 .9894 July 1.0128 .9988 .9931 1.0167 .9975 .9879 August 1.0051 .9991 1.0019 1.0085 .9960 .9952 September .9985 1.0008 1.0054 1.0037 .9954 1.0022 October 1.0020 1.0007 1.0042 1.0055 1.0008 1.0110 November .9971 1.0033 1.0036 .9958 1.0007 1.0107 December .9885 1.0027 1.0026 .9860 1.0003 1.0075 1990—January .9915 1.0047 .9980 .9851 1.0065 1.0074 February .9891 1.0042 .9995 .9834 1.0076 1.0052 March .9958 1.0024 1.0037 .9932 1.0054 .9986 3. Weekly seasonal factors used to construct Ml, M2, and M3, December 1988-March 1990 Nontransactions NNoonnbbaannkk DDeemmaanndd OOtthheerr components WWeeeekk eennddiinngg CCuurrrreennccyy ttrraavveelleerr''ss cchheecckkaabbllee ddeeppoossiittss cchheecckkss ddeeppoossiittss in M2 in M3 only 1988—December 5 1.0048 .9229 1.0279 1.0097 .9982 1.0021 12 1.0138 .9207 1.0236 1.0088 .9988 1.0004 19 1.0135 .9186 1.0322 1.0026 .9967 .9985 26 1.0249 .9165 1.0220 .9944 .9950 1.0100 11998899——JJaannuuaarryy 2 1.0071 .9144 1.0833 1.0085 .9975 1.0013 9 1.0057 .9175 1.0705 1.0455 1.0022 .9878 16 .9967 .9215 1.0348 1.0244 1.0025 .9983 23 .9869 .9254 .9987 .9973 1.0022 .9996 30 .9786 .9294 .9702 .9678 1.0005 .9996 FFeebbrruuaarryy 6 .9909 .9345 .9854 1.0034 1.0013 .9987 13 .9927 .9411 .9761 .9970 1.0016 1.0042 20 .9909 .9477 .9608 .9826 1.0013 .9974 27 .9808 .9543 .9516 .9703 1.0006 1.0012 March 6 .9936 .9587 .9760 1.0074 1.0008 1.0020 13 .9956 .9605 .9786 1.0026 1.0020 1.0023 20 .9922 .9622 .9679 .9946 1.0016 .9996 27 .9894 .9639 .9495 .9847 1.0022 1.0024 AApprriill 3 .9908 .9655 .9999 1.0067 1.0042 1.0016 10 1.0054 .9622 1.0142 1.0349 1.0053 .9944 17 .9977 .9588 1.0216 1.0465 1.0014 .9915 24 .9905 .9555 .9987 1.0233 .9996 .9895 MMaayy 1 .9901 .9522 .9920 1.0039 .9980 .9935 8 1.0074 .9566 .9891 1.0203 .9967 .9970 15 1.0037 .9639 .9914 1.0021 .9982 .9946 22 .9991 .9712 .9714 .9871 .9995 1.0014 29 .9987 .9785 .9662 .9708 .9992 1.0052 Table 3 continues on page 510. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 Federal Reserve Bulletin • July 1989 3. Weekly seasonal factors used to construct Ml, M2, and M3, December 1988-March 1990—Continued Nontransactions WWeeeekk eennddiinngg CCuurrrreennccyy tt NN rraa oo vv nn ee bb ll aa ee nn rr kk ''ss DDeemmaanndd cchh OO eecc tt kk hh aa eerr bb llee components ddeeppoossiittss cchheecckkss ddeeppoossiittss in M2 in M3 only 1989—June 5 1.0070 .9916 1.0141 1.0075 1.0013 .9977 12 1.0104 1.0194 1.0087 1.0217 1.0004 .9997 19 1.0041 1.0471 1.0117 1.0107 .9987 .9967 26 .9970 1.0750 .9830 .9807 .9981 .9988 July 3 1.0069 1.1028 1.0173 .9883 1.0009 .9926 10 1.0180 1.1149 1.0271 1.0251 1.0020 .9865 17 1.0085 1.1270 1.0145 1.0022 1.0019 .9909 24 1.0020 1.1390 .9897 .9863 1.0012 .9948 31 .9986 1.1510 .9960 .9717 1.0006 1.0002 August 7 1.0146 1.1495 1.0089 1.0102 1.0008 1.0002 14 1.0119 1.1380 1.0127 1.0038 1.0007 .9993 21 1.0059 1.1265 .9958 .9936 1.0010 .9984 28 .9941 1.1151 .9757 .9795 .9998 1.0039 September 4 1.0056 1.1031 1.0033 1.0087 .9992 1.0036 11 1.0043 1.0876 1.0095 1.0228 .9993 1.0021 18 .9944 1.0721 1.0038 1.0032 .9979 1.0055 25 .9858 1.0566 .9671 .9700 .9970 1.0084 October 2 .9861 1.0412 .9927 .9714 .9989 1.0074 9 1.0066 1.0253 1.0043 1.0102 .9997 1.0040 16 .9997 1.0092 1.0135 1.0032 .9996 .9977 23 .9947 .9932 .9887 .9819 1.0001 1.0003 30 .9882 .9773 .9863 .9708 .9995 1.0032 November 6 1.0039 .9636 1.0125 1.0077 1.0001 1.0043 13 1.0084 .9530 1.0121 1.0059 .9989 1.0083 20 1.0041 .9424 1.0071 .9949 .9997 1.0065 27 1.0041 .9320 1.0011 .9786 .9954 1.0178 December 4 1.0040 .9228 1.0278 1.0092 .9993 1.0021 11 1.0134 .9207 1.0255 1.0114 .9991 1.0036 18 1.0119 .9187 1.0321 1.0004 .9962 1.0036 25 1.0245 .9167 1.0183 .9939 .9932 1.0091 1990—January 1 1.0065 .9148 1.0692 .9994 .9984 .9920 8 1.0083 .9171 1.0749 1.0455 1.0028 .9835 15 .9980 .9212 1.0510 1.0261 1.0032 .9981 22 .9892 .9253 1.0071 1.0012 1.0014 1.0009 29 .9797 .9294 .9672 .9696 .9991 1.0017 February 5 .9896 .9343 .9848 1.0019 1.0002 1.0002 12 .9938 .9411 .9745 .9969 1.0013 1.0037 19 .9908 .9478 .9627 .9816 1.0017 .9972 26 .9812 .9545 .9523 .9732 1.0016 .9992 March 5 .9927 .95% .9750 1.0033 1.0016 1.0010 12 .9966 .9611 .9767 1.0048 1.0020 .9992 19 .9925 .9625 .9720 .9959 1.0018 .9971 26 .9863 .9638 .9502 .9844 1.0014 1.0041 April 2 .9886 .9652 .9830 .9980 1.0045 1.0066 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 511 4. Weekly seasonal factors for selected components of the monetary aggregates, December 1988—March 1990 Commercial bank deposits Thrift institution deposits Week ending Small- Large- Small- Large- SSaavviinnggss denomination denomination Savings denomination denomination time time time time 1988—December 5 .9933 1.0027 .9987 .9923 1.0002 1.0056 12 .9918 1.0021 1.0008 .9896 .9988 1.0069 19 .9873 1.0007 .9986 .9848 .9987 1.0065 26 .9835 1.0015 1.0041 .9796 1.0008 1.0072 1989—January 2 .9880 1.0049 1.0077 .9876 1.0041 1.0080 9 .9958 1.0053 .9993 .9919 1.0073 1.0058 16 .9937 1.0058 .9987 .9877 1.0081 1.0072 23 .9908 1.0047 .9967 .9834 1.0075 1.0062 30 .9888 1.0023 .9992 .9784 1.0037 1.0076 February 6 .9884 1.0032 .9977 .9851 1.0073 1.0069 13 .9898 1.0044 1.0001 .9849 1.0082 1.0060 20 .9898 1.0046 .9993 .9826 1.0081 1.0052 27 .9880 1.0036 1.0007 .9813 1.0055 1.0027 March 6 .9906 1.0032 1.0019 .9879 1.0060 1.0022 13 .9935 1.0042 1.0023 .9911 1.0054 1.0015 20 .9954 1.0028 1.0016 .9934 1.0039 .9974 27 .9973 1.0006 1.0088 .9934 1.0038 .9974 April 3 1.0041 .9992 1.0054 1.0051 1.0075 .9975 10 1.0093 .9971 .9993 1.0093 1.0043 .9930 17 1.0030 .9955 .9923 1.0020 1.0010 .9879 24 .9998 .9959 .9894 .9972 .9992 .9843 MMaayy 11 .9991 .9933 .9928 1.0013 .9987 .9990 88 1.0045 .9926 .9926 1.0064 .9969 .9953 15 1.0065 .9921 .9942 1.0073 .9954 .9949 22 1.0078 .9920 .9982 1.0063 .9938 .9921 29 1.0071 .9931 1.0023 1.0043 .9931 .9926 June 5 1.0100 .9936 .9991 1.0119 .9933 .9894 12 1.0127 .9947 .9965 1.0144 .9933 .9898 19 1.0093 .9952 .9930 1.0118 .9920 .9888 26 1.0074 .9962 .9970 1.0085 .9933 .9883 July 3 1.0107 .9983 .9965 1.0179 .9988 .9919 10 1.0161 .9983 .9917 1.0224 .9981 .9881 17 1.0149 .9981 .9889 1.0197 .9966 .9860 24 1.0127 .9985 .9930 1.0153 .9956 .9883 31 1.0084 1.0004 .9972 1.0090 .9991 .9876 August 7 1.0089 .9992 .9978 1.0128 .9978 .9897 14 1.0079 .9986 .9998 1.0115 .9961 .9918 21 1.0048 .9986 1.0014 1.0079 .9954 .9963 28 1.0015 .9990 1.0067 1.0034 .9947 1.0005 September 4 .9992 1.0011 1.0061 1.0042 .9955 1.0018 11 1.0009 1.0008 1.0039 1.0053 .9946 .9974 18 .9981 1.0003 1.0032 1.0030 .9942 .9983 25 .9963 1.0008 1.0069 1.0007 .9945 1.0044 October 2 .9981 1.0015 1.0080 1.0064 .9997 1.0117 9 1.0052 1.0018 1.0072 1.0122 1.0013 1.0114 16 1.0043 1.0004 1.0031 1.0087 1.0008 1.0093 23 1.0030 .9998 1.0022 1.0033 1.0008 1.0110 30 .9972 1.0003 1.0036 .9982 1.0005 1.0120 November 6 .9984 1.0032 1.0029 1.0007 1.0005 1.0121 13 .9990 1.0037 1.0040 .9990 1.0009 1.0110 20 .9978 1.0026 1.0041 .9947 1.0011 1.0093 27 .9954 1.0033 1.0045 .9910 1.0003 1.0118 December 4 .9930 1.0040 1.0006 .9926 1.0008 1.0079 11 .9934 1.0035 1.0041 .9926 1.0006 1.0084 18 .9882 1.0003 1.0011 .9837 .9991 1.0062 25 .9832 .9986 1.0049 .9797 .9986 1.0045 Table 4 continues on page 512. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 Federal Reserve Bulletin • July 1989 4. Weekly seasonal factors for selected components of the monetary aggregates, December 1988-March 1990—Continued Commercial bank deposits Thrift institution deposits WWeeeekk eennddiinngg Small- Large- Small- Large- Savings denomination denomination Savings denomination denomination time time time time 11999900——JJaannuuaarryy 1 .9862 1.0082 1.0012 .9838 1.0028 1.0109 8 .9957 1.0068 .9967 .9905 1.0069 1.0062 15 .9931 1.0054 .9979 .9874 1.0071 1.0072 22 .9897 1.0035 .9969 .9831 1.0061 1.0062 29 .9895 1.0028 1.0001 .9795 1.0059 1.0092 FFeebbrruuaarryy 5 .9877 1.0035 .9980 .9850 1.0087 1.0083 12 .9902 1.0048 .9999 .9848 1.0088 1.0073 19 .9899 1.0046 .9991 .9824 1.0080 1.0062 26 .9882 1.0039 1.0000 .9808 1.0059 1.0018 March 5 .9895 1.0033 1.0018 .9868 1.0059 .9990 12 .9936 1.0039 1.0023 .9912 1.0050 .9978 19 .9958 1.0023 1.0019 .9934 1.0037 .9947 26 .9977 1.0011 1.0072 .9927 1.0041 .9987 April 2 1.0027 1.0011 1.0052 1.0025 1.0098 1.0046 HEARING SCHEDULED application concerning whether the proposed activity is so closely related to banking or managing The Board of Governors of the Federal Reserve or controlling banks as to be a proper incident System announced on May 4, 1989, that it had thereto. The National Armored Car Association, ordered a public hearing on the application filed Seattle, Washington, informed the Board that it by Metrocorp, Inc., East Moline, Illinois, to opposed the application and requested a public engage through its wholly owned subsidiary, hearing to explore the questions on which the Metro Armored Courier, Inc., East Moline, Board requested comment. Illinois, in armored car activities. The hearing was set before a hearing officer at The Board invited public comment on the a time determined by the hearing officer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

513 Legal Developments ORDERS ISSUED UNDER BANK HOLDING York. BUSH is a non-operating company that, follow- COMPANY ACT ing consummation of the acquisition, will directly own Bank. BBIL is a corporation incorporated under sec- Orders Issued Under Section 3 of the Bank tion 25(a) of the Federal Reserve Act (12 U.S.C § 611) Holding Company Act (the "Edge Act"). Bank, a de novo institution, will provide a broad The Bank of Bermuda Limited range of domestic and international banking and trust Hamilton, Bermuda services in the New York banking market.4 In view of the de novo status of Bank and based upon the facts of Bermuda (U.S.) Holdings Limited record, the Board concludes that the proposed trans- Dover, Delaware action will have no adverse effects on existing or future competition, nor will it increase the concentra- Order Approving Formation of Bank Holding tion of resources in any relevant market. Company Section 3(c) of the Act requires in every case that the Board consider the financial resources of the The Bank of Bermuda Limited ("BBL"), Hamilton, applicant organization and the bank to be acquired. In Bermuda, and its subsidiary, Bermuda (U.S.) Hold- accordance with the principles of national treatment ings Limited ("BUSH"),1 Dover, Delaware, have and competitive equity, the Board has stated that it applied for the Board's approval under section 3(a)(1) expects a foreign bank to meet the same general of the Bank Holding Company Act (12 U.S.C standards of financial strength as domestic bank hold- § 1842(a)(1)) ("BHC Act"), to become bank holding ing companies and to be able to serve as a source of companies by acquiring all of the outstanding voting strength to its United States banking operations.5 In shares of Bank of Bermuda (New York) Limited, New considering applications of foreign banking organiza- York, New York ("Bank").2 tions, the Board has noted that foreign banks operate Notice of the application, affording an opportunity outside the United States in accordance with different for interested persons to submit comments, has been principles, asset quality standards, and banking pracgiven in accordance with section 3(b) of the BHC Act tices and traditions, and that these differences have (53 Federal Register 38,345 (1988)). The time for filing made it difficult to compare the capital positions of comments has expired, and the Board has considered domestic and foreign banks. The Board, however, the application and all comments received in light of recently adopted a proposal to supplement its considthe factors set forth in section 3(c) of the BHC Act. eration of capital adequacy with a risk-based system BBL is the largest banking organization in Bermuda, that has been agreed to by the member countries of the with total assets of $4.2 billion.3 It owns or controls Basle Committee on Banking Regulations and Superseveral financial institutions and other companies located in Bermuda, the Cayman Islands, Europe, and 4. The Metropolitan New York - New Jersey market includes New China. The only companies BBL owns or controls in York City; Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, and the United States are BUSH and Bank of Bermuda Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, International Limited ("BBIL"), New York, New Sussex, Union, and Warren Counties in New Jersey; and parts of Fairfield County in Connecticut. 5. Toyo Trust and Banking Co., Ltd., 74 FEDERAL RESERVE 1. Immediately prior to the acquisition of Bank stock, BBL will BULLETIN 623 (1988); Taiyo Kobe Bank, Ltd., 74 FEDERAL RESERVE purchase from its wholly owned shell investment company in the BULLETIN 621 (1988); Sumitomo Trust & Banking Co., Ltd., 73 Cayman Islands all outstanding preferred shares of BUSH. Thus, at FEDERAL RESERVE BULLETIN 749 (1987); Ljubljanska Banka-Associthe time of consummation, BBL will own all outstanding common and ated Bank, 72 FEDERAL RESERVE BULLETIN 489 (1986); The Mitsubpreferred shares of BUSH. ishi Trust and Banking Corporation, 72 FEDERAL RESERVE BULLETIN 2. In connection with this application, Bank also has applied for 256 (1986); The Industrial Bank of Japan, Ltd., 72 FEDERAL RESERVE approval under section 9 of the Federal Reserve Act and section 208.4 BULLETIN 71 (1986); The Mitsubishi Bank, Limited, 70 FEDERAL of Regulation H to become a member of the Federal Reserve System. RESERVE BULLETIN 518 (1984). See also Policy Statement on Super- 12 U.S.C § 321, et seq.; 12 C.F.R. 208.4. vision and Regulation of Foreign-Based Bank Holding Companies, 3. Financial data for BBL are as of June 30, 1988. Federal Reserve Regulatory Service 114-835 (1979). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 Federal Reserve Bulletin • July 1989 visory Practices and the other domestic federal bank- approval under section 3 of the Bank Holding Coming agencies.6 The Board considers the Basle Commit- pany Act ("Act") (12 U.S.C § 1842) to merge with tee proposal an important step toward a more Consolidated Banc Shares, Inc., Clarksburg, West consistent and equitable international standard for Virginia ("Consolidated"), and thereby indirectly to assessing capital adequacy. acquire Consolidated's sole bank subsidiary, The In this case, the Board notes that the primary capital Lowndes Bank, Clarksburg, West Virginia.1 ratio of BBL is below the minimum capital guidelines Notice of the applications, affording opportunity for for United States multinational bank holding compa- interested persons to submit comments, has been nies. However, BBL's consolidated ratios of core published (54 Federal Register 10,585 (1989)). The capital and total capital to risk-adjusted assets exceed time for filing comments has expired, and the Board the 1992 minimum capital standards adopted by the has considered the applications and all comments Basle Committee. The Board also notes that Bank is a received in light of the factors set forth in section 3(c) newly chartered bank, will initially be small in relation of the Act. to BBL, and will be strongly capitalized. As Bank's CB&T Financial is the eighth largest commercial size increases, the Board will expect Applicants to banking organization in West Virginia, controlling maintain Bank among the more strongly capitalized total deposits of $300.4 million, representing approxibanking organizations of comparable size in the mately 2.2 percent of total deposits in commercial United States. In view of these and other facts of banking organizations in the state.2 Consolidated is the record, the Board finds that considerations relating to twenty-fourth largest banking organization in West the financial and managerial resources and future Virginia, controlling total deposits of $128.4 million, prospects of BBL, BUSH, and Bank are consistent which represents less than one percent of total deposwith approved. Considerations relating to the conve- its in commercial banking organizations in the state.3 nience and needs of the communities to be served also Upon consummation of this proposal, CB&T Finanare consistent with approval of the application. cial would become the fifth largest commercial bank- Based on the foregoing and other facts of record, the ing organization in the state, controlling total deposits Board has determined that consummation of the pro- of $428.8 million, representing approximately 3.1 perposal would be in the public interest and that the cent of total statewide commercial bank deposits. application should be, and hereby is, approved.7 The Consummation of this proposal would not increase transaction shall not be consummated before the thir- significantly the concentration of banking resources in tieth day following the effective date of this Order, or West Virginia. later than three months following the effective date of CB&T Financial competes directly with Consolithis Order, unless such period is extended for good dated in the Clarksburg, West Virginia, banking cause by the Board or by the Federal Reserve Bank of market.4 CB&T Financial is the sixth largest of ten New York, pursuant to delegated authority. commercial banking organizations in the market, con- By order of the Board of Governors, effective trolling deposits of $49.5 million, representing approx- May 2, 1989. imately 6.9 percent of the market's total bank deposits.5 Consolidated is the second largest commer- Voting for this action: Vice Chairman Johnson and Govercial banking organization in the market, controlling nors Seger, Angell, Kelley, and La Ware. Absent and not deposits of $132.7 million, representing approximately voting: Chairman Greenspan and Governor Heller. 18.4 percent of the market's total bank deposits. Upon JENNIFER J. JOHNSON consummation of this proposal, CB&T Financial Associate Secretary of the Board CB&T Financial Corp. Fairmont, West Virginia 1. In order to effect this transaction, CB&T Financial has caused to be formed a second-tier subsidiary, CB&T Clarksburg Corp., Clarksburg, West Virginia, which has applied for the Board's approval to Order Approving Merger of Bank Holding become a bank holding company by acquiring Community Bank & Trust of Harrison County, Clarksburg, West Virginia, an existing Companies bank subsidiary of CB&T Financial. Consolidated and The Lowndes Bank would then be merged with and into CB&T Clarksburg and its respective bank subsidiary. CB&T Financial Corp., Fairmont, West Virginia 2. State deposit data are as of December 31, 1988. ("CB&T Financial"), has applied for the Board's 3. Consolidated also controls a nonbank subsidiary, CB Realty Company, which holds certain real estate assets of Consolidated. CB&T Financial has committed that Consolidated will divest the real 6. 53 Federal Register 8549 (1988). estate assets and dissolve CB Realty prior to consummation of the 7. Further, Bank appears to meet all of the criteria for admission to proposal. membership, including capital requirements and considerations re- 4. The Clarksburg market is approximated by Harrison and Taylor lated to management character and quality. Accordingly, the Board Counties, West Virginia. has concurrently approved Bank's membership application. 5. Market data for commercial banks are as of June 30, 1987. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 515 would become the second largest commercial banking effect, on competition in the Clarksburg market or in organization in the market, controlling deposits of any other relevant market. $182.2 million, representing approximately 25.3 per- The financial and managerial resources of CB&T cent of total market deposits. The Herfindahl-Hir- Financial, Consolidated, and their subsidiaries are schman Index ("HHI") for the Clarksburg market consistent with approval. In addition, considerations would increase by 254 points from 1729 to 1983.6 relating to the convenience and needs of the commu- Although consummation of this proposal would nities to be served are consistent with approval. eliminate some existing competition in the Clarksburg Accordingly, based on the foregoing and other facts market, nine commercial banks would continue to of record, the Board has determined that the applicaoperate in the market after consummation of this tions should be, and hereby are, approved. The proproposal. In addition, the Board has considered the posal shall not be consummated before the thirtieth presence in the market of the state's largest thrift calendar day following the effective date of this Order, institution. The Board has previously indicated that or later than three months after the effective date of thrift institutions have become, or have the potential this Order, unless such period is extended for good to become, major competitors of commercial banks.7,. cause by the Board or by the Federal Reserve Bank of In the Clarksburg market, the thrift institution acf Richmond, acting pursuant to delegated authority. counts for a significant percentage of the total depos- By order of the Board of Governors, effective its. Based upon the size, market share, and commer- May 31, 1989. cial and consumer lending activities of this thrift institution, the Board has concluded that this thrift Voting for this action: Chairman Greenspan and Governors institution exerts a significant competitive influence Johnson, Seger, Angell, Heller, Kelley, and LaWare. that mitigates the anticompetitive effects of this proposal in this banking market.8 WILLIAM W. WILES Moreover, the Clarksburg market, one of the prin- Secretary of the Board cipal population centers in the state, possesses char- MidAmerican Corporation acteristics rendering it attractive for entry by outside Shawnee Mission, Kansas banking organizations, and de novo entry into the market in fact has occurred within the past year. In addition, changes in West Virginia banking law have Order Approving Merger of a Bank Holding resulted in expansion in the number of potential en- Company trants into the market, and market concentration in fact is declining on an historical basis.9 MidAmerican Corporation, Shawnee Mission, Kansas Accordingly, based upon a review of all the facts of ("MidAmerican"), a bank holding company within the record, the Board concludes that consummation of meaning of the Bank Holding Company Act ("BHC this proposal would not have a significantly adverse Act"), has applied for the Board's approval under section 3(a)(5) of the BHC Act to acquire by merger Merchants Bancorporation, Topeka, Kansas 6. Under the revised Department of Justice Merger Guidelines (49 Federal Register 26,823 (June 29, 1984)), a market in which the ("Merchants"), and thereby to acquire its subsidiary post-merger HHI is above 1800 is considered highly concentrated. banks, Merchants National Bank, Topeka, Kansas, The Department of Justice has informed the Board that a bank merger and First National Bank of Lawrence, Lawrence, or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI Kansas.1 is at least 1800 and the merger increases the HHI by at least 200 Notice of the application, affording interested perpoints. The Department of Justice has stated that the higher than normal HHI thresholds for screening bank mergers for anticompeti- sons an opportunity to submit comments, has been tive effects implicitly recognizes the competitive effect of limited published (54 Federal Register 9892 (1989)). The time purpose lenders and other non-depository financial entities. The for filing comments has expired, and the Board has Department of Justice has filed no adverse comments with respect to this proposed acquisition. considered the application and all comments received 7. Midwest Financial Group, 75 FEDERAL RESERVE BULLETIN 386 in light of the factors set forth in section 3(c) of the (1989); CB&TBancshares, Inc., 75 FEDERAL RESERVE BULLETIN 381 BHC Act.2 (1989); National City Corporation, 70 FEDERAL RESERVE BULLETIN 743 (1984). 8. If 50 percent of deposits held by the thrift institution in the Clarksburg market were included in the calculation of market concen- 1. After the merger, MidAmerican will be the surviving corporation. tration, CB&T Financial's pro forma market share would be 24.0 2. MidAmerican's proposal to continue certain general insurance percent. The HHI would increase by 229 points to 1815. agency activities under section 4 of the BHC Act has been protested 9. The Board notes that West Virginia banks were permitted to by the Independent Insurance Agents of America, Inc., National branch statewide as of January 1, 1987. See W. Va. Code § 31A- Association of Casualty and Surety Agents, National Association of 8—12(c)(1)(B) (1988). Moreover, as of January 1, 1988, acquisitions of Life Underwriters, National Association of Professional Insurance West Virginia banking organizations by out-of-state bank holding Agents, National Association of Surety Bond Producers, New York companies were permitted on a national reciprocal basis. W. Va. Code State Association of Life Underwriters, Independent Insurance § 31A-8A-7 (1988). Agents of New York, Inc., and Professional Insurance Agents of New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 Federal Reserve Bulletin • July 1989 MidAmerican is the tenth largest banking organiza- The financial and managerial resources of the resulttion in Kansas, controlling deposits of $281.0 million, ing organization and its subsidiaries are consistent representing approximately 1.3 percent of the total with approval. Considerations relating to the convedeposits in commercial banking organizations in the nience and needs of the communities to be served by state.3 Merchants is the fifth largest commercial bank- MidAmerican's and Merchants's subsidiary banks are ing organization in Kansas, controlling deposits of also consistent with approval. $339.2 million, representing approximately 1.6 percent Based on the foregoing and other facts of record, of the total deposits in commercial banking organiza- and in reliance upon commitments made by MidAmertions in the state. Upon consummation of this pro- ican, the Board has determined that the application posal, MidAmerican will become the third largest should be, and hereby is, approved. The transaction commercial banking organization in Kansas, control- shall not be consummated before the thirtieth calendar ling deposits of $620.2 million, representing approxi- day following the effective date of this Order, or later mately 2.8 percent of the total deposits in commercial than three months after the effective date of this banks in the state. Consummation of this proposal Order, unless such period is extended for good cause would not significantly affect the concentration of by the Board or by the Federal Reserve Bank of banking resources in the state. Kansas City, acting pursuant to delegated authority. MidAmerican's subsidiary bank, MidAmerican By order of the Board of Governors, effective Bank and Trust Company, is located in Overland Park, May 30, 1989. Kansas, and competes in the Kansas City banking market.4 Merchants's current subsidiary banks com- Voting for this action: Chairman Greenspan and Governors pete in the Topeka and Lawrence, Kansas, banking Johnson, Seger, Angell, Heller, Kelley, and LaWare. markets.5 In the Topeka banking market, Merchants's subsidiary bank is the second largest commercial JENNIFER J. JOHNSON bank, with deposits of $217.2 million, representing Associate Secretary of the Board 18.4 percent of the total deposits in commercial banks in that market. In the Lawrence banking market, SouthTrust Corporation Merchants's subsidiary bank is the largest commercial Birmingham, Alabama bank, with deposits of $122.0 million, representing 43.7 percent of the total deposits in commercial banks Order Approving Acquisition of a Bank and in that market. The subsidiary banks of MidAmerican Establishment of a de novo Bank and Merchants do not compete directly in any banking market. Based on all of the facts of record, the Board SouthTrust Corporation, Birmingham, Alabama believes that consummation of the proposal would not ("SouthTrust"), a bank holding company within the have a significantly adverse effect on competition in meaning of the Bank Holding Company Act ("Act"), any relevant banking market. In light of the size of the has applied for the Board's approval under section organizations and the characteristics of the relevant 3(a)(3) of the Act (12 U.S.C § 1842(a)(3)) to control all markets, consummation also would not have a signif- of the voting shares of SouthTrust National Bank icantly adverse effect on probable future competition ("Bank") after its relocation from Phenix City, Alain any relevant banking market. bama, to Columbus, Georgia; and to acquire South- Trust Bank of Russell County, Phenix City, Alabama ("Russell County Bank"), a de novo bank. Bank is a subsidiary of SouthTrust and currently operates in Phenix City, Alabama. SouthTrust pro- York, Inc. ("Protestants"), on the basis that additional facts are poses to relocate Bank from Phenix City to Columbus, required to demonstrate MidAmerican's entitlement to insurance grandfather rights under section 4 of the BHC Act. In response to Georgia, pursuant to the provisions of the National these protests, MidAmerican has committed to divest or terminate Bank Act.1 The Board has previously determined that these insurance activities within two years of consummation of the an application under the Act is required for an interproposal and, during this two-year period, to limit these insurance activities to renewals of existing policies. MidAmerican has reserved the right, during the two-year divestiture period, to seek Board approval under section 4 of the BHC Act to continue to conduct its insurance agency activities. Protestants' comments, which relate exclusively to MidAmerican's insurance agency activities, will be considered in the context of that request. 3. Deposit and market data are as of December 31, 1987. 1. 12 U.S.C § 30. The Office of the Comptroller of the Currency 4. The Kansas City banking market is defined as the Kansas City approved the relocation on February 20, 1989. See Decision of the RMA. Comptroller of the Currency on the Application of SouthTrust Na- 5. The Topeka banking market is defined as the Topeka RMA. The tional Bank, Phenix City, Alabama, to Relocate its Main Office to Lawrence banking market is defined as the Lawrence RMA. Columbus, Georgia, February 20, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 517 state relocation of a bank owned by a bank holding Protestants contend that the Georgia statute does company.2 not "specifically authorize" the transaction proposed Notice of the applications, affording opportunity for in this case for purposes of the Douglas Amendment to interested persons to submit comments, has been the Act because the Georgia statute does not specifipublished (53 Federal Register 47,573 (1988), 54 Fed- cally authorize "relocations" into Georgia by outeral Register 11,076 (1989)). The time for filing com- of-state bank holding companies.7 ments has expired, and the Board has considered the The Board believes that the Georgia statute permitapplications and all comments received in light of the ting regional bank holding companies to "acquire . . . factors set forth in section 3(c) of the Act.3 a Georgia bank" would encompass the relocation of Under the Act, the Board may not approve Appli- Bank, as proposed here. Bank does not currently cant's proposal to relocate Bank from Alabama to qualify as "a Georgia bank" under Georgia law be- Georgia unless the proposal complies with the Douglas cause Bank operates in Alabama. Under Georgia law, Amendment to the Act. The Douglas Amendment a Georgia bank is defined as a bank having banking prohibits the Board from approving an application by a offices only in Georgia.8 The proposed relocation, bank holding company to acquire control of a bank however, is an action that would cause Bank to located outside of the holding company's home state,4 maintain offices only in Georgia. As a result of that unless such acquisition is "specifically authorized by action, SouthTrust would acquire a Georgia bank the statute laws of the State in which [the] bank is within the meaning of the Georgia regional banking located, by language to that effect and not merely by statute. Accordingly, the Board believes that Georgia implication." 12 U.S.C § 1842(d). Georgia law permits law specifically authorizes this method of acquiring a a bank holding company located in a region that Georgia bank for purposes of the Douglas includes Alabama to acquire a "Georgia bank" pro- Amendment.9 vided that Georgia bank holding companies are per- Protestants also contend that the proposal does not mitted to acquire banks or bank holding companies in meet the specific longevity requirements of Georgia the home state of the acquiring bank holding company law. The Georgia statute requires that the bank to be on a reciprocal basis.5 Georgia law also requires that acquired by an out-of-state bank holding company the banking organization to be acquired must have "has been in existence and continuously operated as a been in existence and continuously operated for more bank for a period of five years or more."10 Protestants than five years prior to the acquisition. Alabama by argue that this provision must be read to require that statute permits a bank holding company located in the bank be in existence and operating in Georgia for Georgia to acquire an Alabama bank or bank holding five years, and that the authorization of relocations company on a reciprocal basis provided the bank to be would permit evasion of this requirement and underacquired has been in operation for at least five years.6 mine the purpose of this provision. Thus, the Georgia interstate banking statute autho- The Georgia statute requires only that the bank be rizes an Alabama bank holding company to acquire a "in existence and continuously operated as a bank for Georgia bank after compliance with the requirements a period of five years or more." The Georgia statute of the Georgia statute. does not by its terms require that the bank be operated for five years in Georgia. Bank has been in existence and continuously operated as a bank in the Columbus banking market since 1903. Accordingly, after review 2. SouthTrust has previously received Board approval to acquire of all of the facts of record in this case, including the Bank as an Alabama bank. 61 FEDERAL RESERVE BULLETIN 598 (1975). The Board's approval of that application, and its statutory comments by Protestants, the Board believes that the authority to grant such approval, is limited by the provisions of the Douglas Amendment. Thus, the original approval granted by the Board to SouthTrust to acquire Bank was limited to owning and operating Bank in the state in which Bank was originally located. The relocation of Bank to another state is outside the approval that was, or 7. The Georgia Commissioner of Banking and Finance and the could have been, granted at that time, and requires additional Board Georgia Assistant Attorney General have been consulted regarding approval. 12 C.F.R. 225.144. whether the proposed relocation is permissible under the Georgia 3. Comments have been received from two banking competitors in statute. They have indicated that the question whether the proposal in the Columbus banking market, CB&T Bancshares, Inc., and First this case is specifically authorized under Georgia law for purposes of Columbus Community Bank & Trust Co., both of Columbus, Georgia the Douglas Amendment is a question for the Board under the Douglas ("Protestants"). Amendment. 4. A bank holding company's home state is that state in which the 8. Ga. Code Ann. 7-1-620(7) (Supp. 1988). operations of the bank holding company's banking subsidiaries were 9. Ga. Code Ann. § 7-l-621(a)(3) (Supp. 1988). See also Ga. Code principally conducted on July 1, 1966, or the date on which the Ann. § 7-1-620(1) (Supp. 1988). The Georgia interstate banking company became a bank holding company, whichever is later. South- statute specifically permits certain out-of-state bank holding compa- Trust's home state is Alabama. nies to acquire Georgia banks, including by taking any action that 5. Ga. Code Ann. § 7-1-621 (Supp. 1988). would result in control of a Georgia bank. 6. Ala. Code § 5-13A-3 (Supp. 1988). 10. Ga. Code Ann. § 7-l-621(d)(2) (Supp. 1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 Federal Reserve Bulletin • July 1989 proposal meets the longevity requirement of Georgia organizations in the market.14 The proposed relocation law. and the establishment of a de novo bank in the market Based on the foregoing, the Board has determined will not change Applicant's position in the Columbus that approval of the proposal is not barred by the market, and the Herfindahl-Hirschman Index Douglas Amendment.11 The Board's action on the ("HHI") will remain at 2853.15 applications by SouthTrust to acquire Bank and Rus- Protestants allege that the proposal will adversely sell County Bank is specifically conditioned on Appli- affect competition in the Columbus market by adding cant obtaining any necessary approvals from the Geor- another banking facility to what Protestants believe is gia Commissioner of Banking and Finance under the an "over-banked" market, and will adversely affect Georgia interstate banking statute regarding Bank. In the ability of a recently established de novo banking this regard, the Board notes that the establishment of facility that is located in close proximity to the prothe Russell County Bank is an integral and necessary posed location of Bank to compete effectively. As element of the proposal by SouthTrust to relocate noted above, the Columbus banking market is highly Bank to Georgia. concentrated and the establishment of the Russell SouthTrust, a multi-bank holding company control- County Bank should increase competition in that ling 40 banking subsidiaries, is the second largest market. Moreover, the Board believes that the ecocommercial banking organization in Alabama. South- nomic, demographic, and competitive characteristics Trust controls 29 bank subsidiaries operating in Ala- of the Columbus market do not indicate that the bama, with approximately $4.3 billion in domestic proposal would have a significantly adverse effect on deposits, representing approximately 17.9 percent of competition in the Columbus market. In this regard, the total deposits in commercial banks in the state.12 the Board notes that the Columbus market is one of Applicant also currently owns eight bank subsidiaries the larger banking markets in Georgia, has experiin Florida, with approximately $415.6 million in depos- enced substantial deposit growth in recent years, and its; two bank subsidiaries in South Carolina with appears capable of supporting an increase in the approximately $11.2 million in deposits; and one bank number of banking facilities. Based on the facts of subsidiary in Tennessee, with $31.6 million in depos- record, the Board concludes that consummation of the its. SouthTrust engages in a broad range of permissible proposal would not have a significantly adverse effect nonbanking activities in the United States. on competition in the Columbus market, or in any other relevant market. SouthTrust operates in the Columbus (Georgia) banking market ("Columbus market").13 Applicant The financial and managerial resources of Applicant ranks eighth among commercial banking organizations and its subsidiaries are consistent with approval. In in the Columbus market, controlling deposits of ap- addition, considerations relating to the convenience proximately $27.8 million, representing approximately and needs of the communities to be served by South- 2.3 percent of total deposits in commercial banking Trust, Bank, and Russell County Bank are consistent with approval.16 Accordingly, based on the foregoing and other facts of record and subject to the conditions noted above, 11. Protestants argue that the proposed relocation is a subterfuge the Board has determined that the applications should designed to avoid the restrictions of the Douglas Amendment. In this case, however, SouthTrust has applied under the Act to acquire a be, and hereby are, approved. The proposed transac- Georgia bank, and, as indicated above, the Board has determined that the proposed acquisition is consistent with the Douglas Amendment to the Act. Protestants also argue that the proposal is designed to avoid interstate branching restrictions under federal and state law. In this 14. Market data are as of June 30, 1987. regard, Bank and Russell County Bank are separate corporate enti- 15. Under the revised Department of Justice Merger Guidelines ties, with separate charters and capital. Each bank will provide (49 Federal Register 26,823 (June 29, 1984)), a market in which the services to customers separately and will operate banking facilities post-merger HHI is over 1800 is considered highly concentrated. The only within a single state in compliance with the branching laws of that Department of Justice has informed the Board that a bank merger or state. Moreover, SouthTrust has stated that, while Bank and Russell acquisition generally will not be challenged (in the absence of other County Bank will initially have several officers and directors in factors indicating anticompetitive effects) unless the post-merger HHI common, all officer and director interlocks between these two banks is at least 1800 and the merger increases the HHI by at least 200 will be terminated within one year of the opening of Russell County points. The Department of Justice has stated that the higher than Bank. In light of these and all of the facts of record, the Board does not normal HHI thresholds for screening bank mergers for anticompetibelieve that the proposal will cause the two banks in this case to be tive effects implicitly recognizes the competitive effect of limited branches of the same organization. See Grandview Bank & Trust Co. purpose lenders and other non-depository financial entities. v. Board of Governors, 550 F.2d 415 (8th Cir. 1977), cert, denied, 434 16. Protestants maintain that convenience and needs of the Colum- U.S. 821 (1977). bus banking market are already being met. However, the establish- 12. State data are as of December 31, 1987. ment of a de novo banking office and the provision of expanded 13. The Columbus market is approximated by Muscogee and services such as trust services and personal investment services Chattahoochee Counties in Georgia, Russell County in Alabama, and should serve to increase the convenience and needs of the communithe city of Smiths in Lee County, Alabama. ties within the banking market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 519 tions shall not be consummated before the thirtieth practices. The notice further provided that any request calendar day following the effective date of this Order, for a hearing on this question should be accompanied or later than three months after the effective date of by a statement summarizing the reasons why a written this Order, unless such period is extended for good presentation would not suffice in lieu of a hearing, cause by the Board or by the Federal Reserve Bank of identifying specifically any questions of fact that are in Atlanta, acting pursuant to delegated authority. dispute, summarizing the evidence that would be By order of the Board of Governors, effective presented at a hearing, and indicating how the party May 22, 1989. commenting would be aggrieved by approval of the proposal. Voting for this action: Chairman Greenspan and Governors The National Armored Car Association ("Prot- Johnson, Seger, Angell, Heller, Kelley, and La Ware. estant"), Seattle, Washington, has submitted written comments in opposition to approval of the application. JENNIFER J. JOHNSON Protestant contends that the proposed armored car Associate Secretary of the Board activities are not closely related to banking, and challenges whether banks or bank holding companies Orders Issued Under Section 4 of the Bank generally engage in armored car services. Protestant Holding Company Act further contends that services provided by armored car companies are not functionally similar to those Metrocorp, Inc. offered by banks. Protestant also argues that the East Moline, Illinois proposed activity would not be a proper incident to banking, it would not result in any significant public Order for Hearing benefits, and would result in undue concentration of resources, decreased or unfair competition, conflicts Metrocorp, Inc., East Moline, Illinois ("Metrocorp"), of interest, and unsound banking practices. Finally, has applied, pursuant to section 4(c)(8) of the Bank Protestant argues that the proposal violates state Holding Company Act (12 U.S.C § 1843(c)(8)) and branch banking laws and raises the issue of whether section 225.23(a)(3) of the Board's Regulation Y Metrocorp's bank subsidiary would violate the restric- (12 C.F.R. 225.23(a)(3)), for permission to engage, tions on payment of interest on demand deposits set through its de novo subsidiary, Metro Armored Cou- forth in the Board's Regulation Q. Protestant has rier, Inc., in armored car services, including the fol- requested a hearing to establish a more complete lowing: record on which to base a determination concerning the issues raised. (1) fully insured transportation of cash, negotiable instruments, securities, and valuables; collecting In view of the issues raised by the application, the currency and checks from commercial customers Board has concluded that a hearing would be approand nonbank financial institutions and transporting priate in this case. Accordingly, it is hereby ordered and depositing these collections at financial institu- that a formal and public administrative hearing be held tions; and delivering cash, negotiable instruments, with respect to the application by Metrocorp to engage securities, and valuables to commercial customers in armored car activities. The hearing shall be conand nonbank financial institutions; and ducted in accordance with Subpart A of the Board's (2) providing related services such as interbank Rules of Practice for Hearings (12 C.F.R. Part 263) transfers, coin wrapping, change delivery, mail de- and will commence before a hearing officer at the livery, and payroll check cashing. offices of the Board, Washington, D.C., or such other place as the hearing officer shall deem appropriate. By notice published in the Federal Register The Board believes it appropriate that the hearing be (53 Federal Register 50,292 (1988)), the Board invited concluded as expeditiously as possible and, accordinterested persons to express their views on the ques- ingly, orders that the hearing shall be held no later than tions of whether the proposed activity is so closely 45 days from the date of this Order, at a date set by the related to banking or managing or controlling banks as hearing officer, and that the recommended decision be to be a proper incident thereto, and whether consum- filed with the Board within 60 days of the conclusion of mation of the proposal can reasonably be expected to the hearing, in accordance with the Board's Rules of produce benefits to the public, such as greater conve- Practice for Hearings. nience, increased competition, or gains in efficiency, It is further ordered that the issues to be considered that outweigh possible adverse effects, such as undue at this hearing are whether the proposed armored car concentration of resources, decreased or unfair com- services are so closely related to banking or managing petition, conflicts of interests, or unsound banking or controlling banks as to be a proper incident thereto, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 Federal Reserve Bulletin • July 1989 and whether the proposal can reasonably be expected NCNB, with approximately $30 billion in consolito produce benefits to the public, such as greater dated assets, is the 18th largest commercial banking convenience, increased competition or gains in effi- organization in the United States.1 It operates 11 ciency, that outweigh possible adverse effects such as subsidiary banks and engages directly and through undue concentration of resources, decreased or unfair subsidiaries in a broad range of permissible nonbankcompetition, conflicts of interests, or unsound banking ing activities in the United States. practices. Further, the Board requests evidence on the Notice of the application, affording interested perrisks of conducting the activity, including the availabil- sons an opportunity to submit comments on the proity of adequate insurance against risk of loss. Finally, posal, has been published (54 Federal Register 14,291 the Board requests the parties to the hearing to ad- (1989)). The time for filing comments has expired, and dress any issues raised by the proposed activity under the Board has considered the application and all relevant state branching restrictions and other relevant comments received in light of the public interest laws. factors set forth in section 4(c)(8) of the BHC Act. By order of the Board of Governors, effective The Board has previously determined that the con- May 4, 1989. duct of the proposed ineligible securities underwriting and dealing activities is consistent with section 20 of Voting for this action: Chairman Greenspan and Governors the Glass-Steagall Act, provided the underwriting Johnson, Seger, Angell, Heller, and Kelley. Absent and not subsidiary derives no more than 5 percent of its total voting: Governor LaWare. gross revenue from underwriting and dealing in the approved securities over any two-year period.2 The JENNIFER J. JOHNSON Board further found that, subject to the prudential Associate Secretary of the Board framework of limitations established in those cases to address the potential for conflicts of interest, unsound banking practices or other adverse effects, the proposed underwriting and dealing activities were so NCNB Corporation closely related to banking as to be a proper incident Charlotte, North Carolina thereto within the meaning of section 4(c)(8) of the BHC Act. NCNB has committed to conduct its ineli- Order Approving Application to Underwrite and gible securities underwriting and dealing activities Deal in Certain Securities to a Limited Extent subject to the 5 percent revenue test and the prudential limitations established by the Board in its Citicorp/ NCNB Corporation, Charlotte, North Carolina Morgan!Bankers Trust and Chemical Orders.3 ("NCNB"), a bank holding company within the mean- Consummation of the proposal would provide added ing of the Bank Holding Company Act ("BHC Act"), convenience to NCNB's customers. In addition, the has applied for the Board's approval under section Board expects that the de novo entry of NCNB into 4(c)(8) of the BHC Act (12 U.S.C § 1843(c)(8)) and the market for these services would increase the level section 225.23 of the Board's Regulation Y (12 C.F.R. of competition among providers of these services. 225.23), for its subsidiary, NCNB Capital Markets, Accordingly, the Board has determined that the per- Inc., Charlotte, North Carolina ("Company"), to en- formance of the proposed activities by NCNB can gage, to a limited extent, in underwriting and dealing reasonably be expected to produce public benefits that in: (1) municipal revenue bonds, including certain industrial development bonds; (2) 1-4 family mortgage-related securities; (3) commercial paper; and 1. Asset data are as of December 31, 1988. Ranking is as of June 30, (4) consumer-receivable-related securities 1988. All other data are as of September 30, 1988. ("CRRs") (collectively "ineligible securities"). 2. Citicorp, J.P. Morgan & Co. Incorporated and Bankers Trust New York Corporation, 73 FEDERAL RESERVE BULLETIN 473 (1987) ("CiticorplMorganlBankers Trust"), aff d sub nom., Securities Indus- NCNB also proposes to underwrite and deal in try Association v. Board of Governors of the Federal Reserve System, securities that state member banks are permitted to 839 F.2d 47 (2d Cir. 1988), cert, denied, 108 S. Ct. 2830 (1988) ("S/A v. Board"); and Chemical New York Corporation, The Chase Manunderwrite and deal in under section 16 of the Banking hattan Corporation, Bankers Trust New York Corporation, Citicorp, Act of 1933 (the "Glass-Steagall Act") (12 U.S.C Manufacturers Hanover Corporation and Security Pacific Corpora- §§24 Seventh and 335) (hereinafter "bank-eligible tion, 73 FEDERAL RESERVE BULLETIN 731 (1987) ("Chemical"). 3. NCNB has not proposed a market share limitation and, in light of securities"), as permitted by section 225.25(b)(16) of the decision in SIA v. Board, the Board has determined not to require Regulation Y (12 C.F.R. 225.25(b)(16)). NCNB to comply with a market share limitation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 521 would outweigh adverse effects under the proper inci- The Board's determination is subject to all of the dent to banking standard of section 4(c)(8) of the BHC conditions set forth in the Board's Regulation Y, Act.4 including those in sections 225.4(d) and 225.23(b), and Based on the above, the Board has determined to to the Board's authority to require modification or approve the proposed activities subject to all of the termination of the activities of a bank holding comterms and conditions established in the CiticorplMor- pany or any of its subsidiaries as the Board finds gan/Bankers Trust and Chemical Orders, except the necessary to assure compliance with, and to prevent market share limitation.5 evasion of, the provisions of the BHC Act and the Board's regulations and orders issued thereunder. The transaction shall not be consummated later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Richmond, pursuant to delegated authority. 4. Company may also provide services that are necessary incidents to these approved activities. Any activity conducted as a necessary By order of the Board of Governors, effective incident to the ineligible securities underwriting and dealing activity May 18, 1989. must be treated as part of the ineligible securities activity unless Company has received specific approval under section 4(c)(8) of the BHC Act to conduct the activity independently. Until such approval Voting for this action: Vice Chairman Johnson and Goveris obtained, any revenues from the incidental activity must be counted nors Heller, Kelley, and LaWare. Absent and not voting: as ineligible revenue subject to the 5 percent gross revenue limit set Chairman Greenspan and Governors Seger and Angell. forth in Citicorp!Morgan/Bankers Trust. This 5 percent gross revenue limit should be calculated in accordance with the method stated in J.P. Morgan & Co. Incorporated, et JENNIFER J. JOHNSON al., 75 FEDERAL RESERVE BULLETIN 192 (1989). Associate Secretary of the Board 5. The industrial development bonds approved in those applications and for NCNB 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 approval from the conducted by NCNB in any other subsidiary without prior Board Board, Company may underwrite or deal in only these types of review. Pursuant to Regulation Y, no corporate reorganization of industrial development bonds. Company, such as the establishment of subsidiaries of Company to The Board's approval of the proposed underwriting and dealing conduct the activities, may be consummated without prior Board activities extends only to Company. The activities may not be approval. 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 FirstBank at 9th/Corona, N.A., May 17, 1989 Colorado, Denver, Colorado Lake wood, Colorado FirstBank of Edgewater, N.A., Edgewater, Colorado First Bank of Leetsdale/Monaco, N.A., Denver, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 Federal Reserve Bulletin • July 1989 By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Alpine Banks of Colorado, Alpine Bank, Kansas City May 17, 1989 Glenwood Springs, Colorado Aspen, Colorado American National Corporation, American National Bank of Kansas City May 4, 1989 Omaha, Nebraska Sarpy County, Papillion, Nebraska Bankers' Bancorporation of Independent Bankers' Bank of Atlanta May 18, 1989 Florida, Inc., Florida, Orlando, Florida Orlando, Florida BJS, Inc., Westmont Corporation, Chicago May 25, 1989 West Union, Iowa West Union, Iowa Capital City Bank Group, Inc., Branford State Bank, Atlanta May 10, 1989 Tallahassee, Florida Branford, Florida Carolina First BancShares, Inc., Lincoln Bank of North Carolina, Richmond May 2, 1989 Lincolnton, North Carolina Lincolnton, North Carolina Chemical Financial Corporation, The Cass City State Bank, Chicago May 17, 1989 Midland, Michigan Cass City, Michigan Community Financial Corporation, Harbor Beach, Michigan Citizens Bancorporation, Inc., The Citizens Bank of Valley Atlanta May 5, 1989 Valley Head, Alabama Head, Valley Head, Alabama Citizens Bancshares, Inc., First Citizens Bank of Bozeman, Minneapolis April 28, 1989 Bozeman, Montana Bozeman, Montana City Bancorp, Inc., Security Bankshares, Inc., Dallas May 18, 1989 Wellington, Texas Wellington, Texas Security State Bank, Hedley, Texas City State Bank in Wellington, Wellington, Texas Constellation Bancorp, New Brunswick Savings Bank, New York May 5, 1989 Elizabeth, New Jersey New Brunswick, New Jersey Cordele Bancshares, Inc., Cordele Banking Company, Atlanta May 10, 1989 Cordele, Georgia Cordele, Georgia County Bancorporation, Inc., Capital Bancorporation, Inc., St. Louis April 27, 1989 Jackson, Missouri St. Louis, Missouri Crown National Bancorporation, Crown National Bank, Richmond May 1, 1989 Inc., Charlotte, North Carolina Charlotte, North Carolina Dearborn Bancorp, Inc., IRVING BANCORP, INC., Chicago April 26, 1989 Chicago, Illinois Chicago, Illinois Deerfield Financial Corporation, Bank of Deerfield, Chicago May 18, 1989 Deerfield, Wisconsin Deerfield, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 523 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Farmers Bancshares, Inc., Farmers Bank of Maysville, Kansas City May 12, 1989 Maysville, Missouri Maysville, Missouri Farmers Savings Bank Employee BJS, Inc., Chicago May 25, 1989 Stock Ownership Plan and West Union, Iowa Trust, West Union, Iowa First Bancorp, Inc., First Bank, San Francisco May 8, 1989 Ketchikan, Alaska Ketchikan, Alaska First Michigan Bank Security National Bank of Chicago May 25, 1989 Corporation, Manistee, Holland, Michigan Manistee, Michigan First National Bancorp, Pickens County Bancshares, Atlanta May 16, 1989 Gainesville, Georgia Inc., Jasper, Georgia First State Bankshares, Inc., First State Bank, Dallas May 1, 1989 Spearman, Texas Spearman, Texas FISCORP, Inc., dba First Pioneer Bank, San Francisco April 25, 1989 Institutional Service Salt Lake City, Utah Corporation, Salt Lake City, Utah FNB, Inc., The First National Bank of Cleveland May 12, 1989 Dennison, Ohio Dennison, Dennison, Ohio Franklin Bancorporation, Inc., First Interstate Bank of Richmond April 25, 1989 Washington, D.C. Washington, D.C., N.A., Washington, D.C. Gateway Financial Corporation, Gateway Bank, New York May 5, 1989 Norwalk, Connecticut Norwalk, Connecticut Illinois One Bancorp, Inc., First State Bank of St. Louis April 21, 1989 Shawneetown, Illinois Elizabethtown, Elizabethtown, Illinois Jefferson Bancshares, Inc., Bank of Jefferson County, Atlanta May 1, 1989 Louisville, Georgia Louisville, Georgia Key Centurion Bancshares, Inc., Guyan National Bank, Richmond May 18, 1989 Charleston, West Virginia Barboursville, West Virginia Lake Shore Bancorp., Inc., Illinois Center Bancorporation, Chicago May 8, 1989 Chicago, Illinois Inc., Glen Ellyn, Illinois Midmerica Bank Corporation, Mid Jersey National Bank, New York May 12, 1989 Somerville, New Jersey Somerville, New Jersey New Ross Bancorp, Farmers State Bank, Chicago May 12, 1989 New Ross, Indiana New Ross, Indiana NoDak Bancorporation, First Southwest Bank - Mandan, Minneapolis May 17, 1989 Mandan, North Dakota Mandan, North Dakota Northern Trust Corporation, Northern Trust Bank of Texas Chicago May 12, 1989 Chicago, Illinois National Association, Dallas, Texas Norton Capital Corporation, Exchange Bank, Chicago May 9, 1989 Morris, Illinois Gardner, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 Federal Reserve Bulletin • July 1989 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Peoples Bankshares, Inc., Peoples Bank and Trust, Minneapolis May 4, 1989 Parshall, North Dakota Parshall, North Dakota Princeton Agency, Inc., LeClaire Agency, Inc., Chicago April 25, 1989 Princeton, Iowa LeClaire, Iowa Red River Financial Corporation, Community National Bank, Dallas May 24, 1989 Detroit, Texas Detroit, Texas Regency Financial Shares, Inc., Regency Bank, Richmond May 8, 1989 Richmond, Virginia Richmond, Virginia Romney Bankshares, Inc., The Bank of Romney, Richmond May 23, 1989 Romney, West Virginia Romney, West Virginia Security Bancshares Company, Waconia State Bank, Minneapolis May 23, 1989 Glencoe, Minnesota Waconia, Minnesota SouthTrust Corporation, Sentry Bancshares Corporation, Atlanta May 9, 1989 Birmingham, Alabama Roswell, Georgia St. Landry Bancshares, Inc., St. Landry Bank and Trust Co., Atlanta May 1, 1989 Opelousas, Louisiana Opelousas, Louisiana Thompson Insurance, Inc., Basin State Bank, Minneapolis April 21, 1989 Englewood, Colorado Stanford, Montana Three Forks Bancorporation, Citizens Bancshares, Inc., Minneapolis April 28, 1989 Three Forks, Montana Bozeman, Montana West Michigan Financial Bank of Hudsonville, Chicago April 21, 1989 Corporation, Hudsonville, Michigan Hudsonville, Michigan Widmer Bancshares, Inc., Merchants and Farmers Bank, Kansas City April 20, 1989 Salisbury, Missouri Salisbury, Missouri Section 4 Nonbanking Reserve Effective Applicant Activity/Company Bank date Allied Irish Banks, pic, First Maryland Bancorp, Richmond April 27, 1989 Dublin, Ireland Baltimore, Maryland First Southern Mortgage Corporation, Annandale, Virginia Citicorp, Citicorp Information Resources, New York May 24, 1989 New York, New York Inc., Stamford, Connecticut Community Financial Cobb Mortgage Company, Atlanta May 8, 1989 Corporation, Mableton, Georgia Mableton, Georgia GreatBanc, Inc., Plansmith Corporation, Chicago May 11, 1989 Itasca, Illinois Palatine, Illinois Kerndt Bank Services, Inc., Kerndt Brothers Agency, Inc., Chicago May 12, 1989 Lansing, Iowa Lansing, Iowa Norwest Corporation, Corporate Funding, Inc., Minneapolis May 4, 1989 Minneapolis, Minnesota Grand Rapids, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 525 Section 4—Continued Nonbanking Reserve Effective Applicant Activity/Company Bank date Three Forks Bancorporation, to act as guarantor for a portion Minneapolis April 28, 1989 Three Forks, Montana of Citizens Bancshares, Inc. acquisition debt The Toronto-Dominion Bank, American Government New York May 12, 1989 Toronto, Canada Securities, Inc., Morristown, New Jersey Sections 3 and 4 . .. Nonbanking Reserve Effective Activity/Company Bank date Nevada National Co., Valley State Bank, Chicago May 12, 1989 Omaha, Nebraska Rock Valley, Iowa 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. ' ~ ~I 7~l Reserve Effective Applicant Bank(s) ^ date The Bank of Romney, Romney Interim Bank Richmond May 23, 1989 Romney, West Virginia Corporation, Romney, West Virginia 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. 89-1677 (S.D. MCorp v. Board of Governors, No. CA3-88-2693-F Tex. filed May 2, 1989). (N.D. Tex., filed October 28, 1988). White v. Board of Governors, No. CU-S-88-623-RDF Independent Insurance Agents of America, Inc. v. (D. Nev., filed July 29, 1988). Board of Governors, No. 89-4030 (2d Cir., filed VanDyke v. Board of Governors, No. 88-5280 (8th March 9, 1989). Cir., filed July 13, 1988). Securities Industry Association v. Board of Gover- Baugh v. Board of Governors, No. C88-3037 (N.D. nors, No. 89-1127 (D.C. Cir. filed February 16, Iowa, filed April 8, 1988). 1989). Bonilla v. Board of Governors, No. 88-1464 (7th Cir., American Land Title Association v. Board of Gover- filed March 11, 1988). nors, No. 88-1872 (D.C. Cir., filed December 16, Cohen v. Board of Governors, No. 88-1061 (D.N.J., 1988). filed March 7, 1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 Federal Reserve Bulletin • July 1989 Stoddard v. Board of Governors, No. 88-1148 (D.C. Teichgraeber v. Board of Governors, No. 87-2505-0 Cir., filed February 25, 1988). (D. Kan., filed Oct. 16, 1987). Independent Insurance Agents of America, Inc. v. National Association of Casualty & Insurance Agents Board of Governors, No. 87-1686 (D.C. Cir., filed v. Board of Governors, Nos. 87-1354,87-1355 (D.C. November 19, 1987). Cir., filed July 29, 1987). National Association of Casualty and Surety Agents, The Chase Manhattan Corporation v. Board of Govet al., v. Board of Governors, Nos. 87-1644, ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987). 87-1801, 88-1001 88-1206, 88-1245, 88-1270 Lewis v. Board of Governors, Nos. 87-3455, 87-3545 (D.C. Cir., filed Nov. 4, Dec. 21, 1987, Jan. 4, (11th Cir., filed June 25, Aug. 3, 1987). March 18, March 30, April 7, 1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics NOTE. The following tables may have some 1.43, 1.45, 1.46, 1.47,1.48, 1.50,1.53, 1.54, 1.55, discontinuities in historical data for some series 1.56, 2.11, 2.14, 2.15, 2.16, 2.17, 3.14, and 3.21. beginning with the March 1989 issue: 1.10, 1.17, For a more detailed explanation of the changes, 1.20,1.21,1.22,1.23,1.24,1.25,1.26,1.28, 1.30, see the announcement on pages 288-89 of the 1.31,1.32,1.35, 1.36,1.37, 1.39, 1.40,1.41, 1.42, April 1989 BULLETIN, CONTENTS COMMERCIAL BANKING INSTITUTIONS A17 Major nondeposit funds Domestic Financial Statistics A18 Assets and liabilities, last-Wednesday-of-month series MONEY STOCK AND BANK CREDIT WEEKLY REPORTING COMMERCIAL BANKS A3 Reserves, money stock, liquid assets, and debt Assets and liabilities measures A19 All reporting banks A4 Reserves of depository institutions, Reserve A20 Banks in New York City Bank credit A21 Branches and agencies of foreign banks A5 Reserves and borrowings—Depository institutions A22 Gross demand deposits—individuals, A6 Selected borrowings in immediately available partnerships, and corporations funds—Large member banks FINANCIAL MARKETS POLICY INSTRUMENTS A23 Commercial paper and bankers dollar A7 Federal Reserve Bank interest rates acceptances outstanding A8 Reserve requirements of depository institutions A23 Prime rate charged by banks on short-term A9 Federal Reserve open market transactions business loans A24 Interest rates—money and capital markets A25 Stock market—Selected statistics FEDERAL RESERVE BANKS A26 Selected financial institutions—Selected assets and liabilities A10 Condition and Federal Reserve note statements A11 Maturity distribution of loan and security holdings FEDERAL FINANCE A28 Federal fiscal and financing operations MONETARY AND CREDIT AGGREGATES A29 U.S. budget receipts and outlays A12 Aggregate reserves of depository institutions A30 Federal debt subject to statutory limitation and monetary base A30 Gross public debt of U.S. Treasury—Types A13 Money stock, liquid assets, and debt measures and ownership A15 Bank debits and deposit turnover A31 U.S. government securities A16 Loans and securities—All commercial banks dealers—Transactions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • July 1989 A32 U.S. government securities dealers—Positions A53 Gross national product and income and financing A54 Personal income and saving A33 Federal and federally sponsored credit agencies—Debt outstanding International Statistics SECURITIES MARKETS AND SUMMARY STATISTICS CORPORATE FINANCE A55 U.S. international transactions—Summary A34 New security issues—State and local A56 U.S. foreign trade governments and corporations A56 U.S. reserve assets A35 Open-end investment companies—Net sales A56 Foreign official assets held at Federal Reserve and asset position Banks A3 5 Corporate profits and their distribution A57 Foreign branches of U.S. banks—Balance A35 Total nonfarm business expenditures on new sheet data plant and equipment A59 Selected U.S. liabilities to foreign official A36 Domestic finance companies—Assets and institutions liabilities and business credit REPORTED BY BANKS IN THE UNITED STATES REAL ESTATE A59 Liabilities to and claims on foreigners A60 Liabilities to foreigners A37 Mortgage markets A62 Banks' own claims on foreigners A38 Mortgage debt outstanding A63 Banks' own and domestic customers' claims on foreigners A63 Banks' own claims on unaffiliated foreigners CONSUMER INSTALLMENT CREDIT A64 Claims on foreign countries—Combined domestic offices and foreign branches A39 Total outstanding and net change A40 Terms REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES FLOW OF FUNDS A65 Liabilities to unaffiliated foreigners A41 Funds raised in U.S. credit markets A66 Claims on unaffiliated foreigners A43 Direct and indirect sources of funds to credit markets SECURITIES HOLDINGS AND TRANSACTIONS A44 Summary of credit market debt outstanding A45 Summary of credit market claims, by holder A67 Foreign transactions in securities A68 Marketable U.S. Treasury bonds and notes—Foreign transactions Domestic Nonfinancial Statistics INTEREST AND EXCHANGE RATES SELECTED MEASURES A69 Discount rates of foreign central banks A46 Nonfinancial business activity—Selected A69 Foreign short-term interest rates measures A70 Foreign exchange rates A47 Labor force, employment, and unemployment A48 Output, capacity, and capacity utilization A49 Industrial production—Indexes and gross value A71 Guide to Tabular Presentation, A51 Housing and construction Statistical Releases, and Special A52 Consumer and producer prices 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 Annual rates of change, seasonally adjusted in percent1 1988 1989 1988 1989 Monetary and credit aggregates Q2 Q3 Q4 QLR Dec.' Jan.' Feb.' Mar.' Apr. Reserves of depository institutions2 1 Total 6.R 3.1r -.8' -4.2 -2.9 -6.6 -2.2 -8.1 -7.6 2 Required 7.5' 2.9' -1.5' -4.4 -1.4 -8.9 -2.4 -4.3 -4.3 4 3 N M o o n n b e o ta r r r y o w b e a d s e -6i..2y' 6 1 . . 5 3 r ' 4 5. . 3 8 ' 4. . 6 0 2 4 0 . . 9 7 -5 5 . . 7 6 3 1 . . 3 3 -14 4 . . 9 6 -17. . 7 3 Concepts of money, liquid assets, and debt' 5 Ml 6.4 5.2 2.3 -.4 5.5 -6.1 1.7 -1.8 -4.7 6 M2 6.9 3.8 3.6 1.9 3.9 -1.4 1.6 4.0 .8 7 M3 7.2 5.6' 4.9' 3.9 5.5 1.5 3.0 6.8 2.5 8 L 8.5 7.2' 5.7' 5.4 9.9 1.4 3.8 9.1 n.a. 9 Debt 8.6 8.4 8.5 8.5 7.9 7.6 9.8 9.0 n.a. Nontransaction components 10 In M2* 7.1 3.3 4.1 2.7 3.4 .1 1.5 5.9 2.6 11 In M3 only6 8.3 12.2r 9.5' 10.9 11.1 12.2 7.9 16.9 8.8 Time and savings deposits Commercial banks 12 Savings7 10.4 7.9 4.0' -3.7 -2.0 -10.3 -3.1 -10.8 -19.0 13 Small-denomination time® 12.9 11.6 18.0 22.5 18.3 21.5 26.5 28.6 34.6 14 Large-denomination time ' 9.1 18.2 13.0 18.1 12.2 19.1 24.3 22.9 22.3 Thrift institutions 15 Savings 2.6 2.1 -2.5 -7.7 -1.1 -9.2 -13.6 -10.6 -25.4 16 Small-denomination time 12.5 5.4 6.6 4.3 1.6 5.3 5.4 3.3 16.5 17 Large-denomination time 9.2 3.9 7.9 1.2 -2.4 5.9 -2.1 -.3 12.7 Debt components4 18 Federal 8.3 7.1 7.8 7.7 7.7 4.7 9.9 12.6 n.a. 19 Nonfederal 8.7 8.8 8.8' 8.8 8.0 8.5 9.7 8.0 n.a. 1. Unless otherwise noted, rates of change are calculated from average institutions and money market funds. Also excludes all balances held by U.S. amounts outstanding in preceding month or quarter. commercial banks, money market funds (general purpose and broker-dealer), 2. Figures incorporate adjustments for discontinuities associated with the foreign governments and commercial banks, and the U.S. government. implementation of the Monetary Control Act and other regulatory changes to M3: M2 plus large-denomination time deposits and term RP liabilities (in reserve requirements. To adjust for discontinuities due to changes in reserve amounts of $100,000 or more) issued by commercial banks and thrift institutions, requirements on reservable nondeposit liabilities, the sum of such required term Eurodollars held by U.S. residents at foreign branches of U.S. banks reserves is subtracted from the actual series. Similarly, in adjusting for discon- worldwide and at all banking offices in the United Kingdom and Canada, and tinuities in the monetary base, required clearing balances and adjustments to balances in both taxable and tax-exempt, institution-only money market mutual compensate for float also are subtracted from the actual series. funds. Excludes amounts held by depository institutions, the U.S. government, 3. The monetary base not adjusted for discontinuities consists of total money market funds, and foreign banks and official institutions. Also subtracted reserves plus required clearing balances and adjustments to compensate for float is the estimated amount of overnight RPs and Eurodollars held by institution-only at Federal Reserve Banks plus the currency component of the money stock less money market mutual funds. the amount of vault cash holdings of thrift institutions that is included in the L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term currency component of the money stock plus, for institutions not having required Treasury securities, commercial paper and bankers acceptances, net of money reserve balances, the excess of current vault cash over the amount applied to market mutual fund holdings of these assets. satisfy current reserve requirements. After the introduction of contemporaneous Debt: Debt of domestic nonfinancial sectors consists of outstanding credit reserve requirements (CRR), currency and vault cash figures are measured over market debt of the U.S. government, state and local governments, and private the weekly computation period ending Monday. nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Before CRR, all components of the monetary base other than excess reserves sumer credit (including bank loans), other bank loans, commercial paper, bankers are seasonally adjusted as a whole, rather than by component, and excess acceptances, and other debt instruments. The source of data on domestic reserves are added on a not seasonally adjusted basis. After CRR, the seasonally nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt adjusted series consists of seasonally adjusted total reserves, which include data are based on monthly averages. Growth rates for debt reflect adjustments for excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted discontinuities over time in the levels of debt presented in other tables. currency component of the money stock plus the remaining items seasonally 5. Sum of overnight RPs and Eurodollars, money market fund balances adjusted as a whole. (general purpose and broker-dealer), MMDAs, and savings and small time 4. Composition of the money stock measures and debt is as follows: deposits less the estimated amount of demand deposits and vault cash held by Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults thrift institutions to service their time and savings deposit liabilities. of depository institutions; (2) travelers checks of nonbank issuers; (3) demand 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, deposits at all commercial banks other than those due to depository institutions, money market fund balances (institution-only), less a consolidation adjustment the U.S. government, and foreign banks and official institutions less cash items in that represents the estimated amount of overnight RPs and Eurodollars held by the process of collection and Federal Reserve float; and (4) other checkable institution-only money market mutual funds. deposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- 7. Excludes MMDAs. matic transfer service (ATS) accounts at depository institutions, credit union 8. Small-denomination time deposits—including retail RPs—are those issued share draft accounts, and demand deposits at thrift institutions. in amounts of less than $100,000. All IRA and Keogh accounts at commercial M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) banks and thrifts are subtracted from small time deposits. issued by all commercial banks and overnight Eurodollars issued to U.S. residents 9. Large-denomination time deposits are those issued in amounts of $100,000 by foreign branches of U.S. banks worldwide, Money Market Deposit Accounts or more, excluding those booked at international banking facilities. (MMDAs), savings and small-denomination time deposits (time deposits—includ- 10. Large-denomination time deposits at commercial banks less those held by ing retail RPs—in amounts of less than $100,000), and balances in both taxable and money market mutual funds, depository institutions, and foreign banks and tax-exempt general purpose and broker-dealer money market mutual funds. official institutions. Excludes individual retirement accounts (IRA) and Keogh balances at depository Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • July 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 1989 Feb. Apr. Mar. 15 Mar. 22 Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 254,480 258,135 264,245 258,769 257,115 259,100 258,100 262,397 263,435 2 U.S. government securities1 225,591 228,808 233,003 229,656 228,666 228,465 227,847 231,549 232,446 4 3 H Bo el u d g h u t n o d u er t r r ig e h p t u rchase agreements 225,5910 228,8080 231 1 , , 2 7 1 8 5 8 229,6560 228,6660 228,4650 227,8470 231,5490 231,8 5 5 8 8 8 5 Federal agency obligations 6,792 6,779 7,400 6,779 6,779 6,779 6,779 6,779 6,921 6 Bought outright 6,7920 6,7790 6,738 6,7790 6,7790 6,7790 6,7790 6,7790 6,779 7 Held under repurchase agreements 0 0 6620 0 0 0 0 0 1402 8 Acceptances 9 Loans 1,487 1,838 2,326 1,753 1,419 2,018 2,334 2,256 2,907 10 Float 1,254 1,131 800 1,059 726 1,582 1,160 1,277 543 11 Other Federal Reserve assets 19,357 19,580 20,716 19,521 19,526 20,255 19,980 20,536 20,617 12 Gold stock2 11,060 11,061 11,061 11,061 11,060 11,061 11,061 11,060 11,061 13 Special drawing rights certificate account.. 5,018 5,095 5,508 5,018 5,075 5,204 5,432 5,518 5,518 14 Treasury currency outstanding 18,890 18,938 18,989 18,932 18,942 18,952 18,963 18,977 18,991 ABSORBING RESERVE FUNDS 15 Currency in circulation 240,493 242,016 243,781 242,112 242,255 242,352 243,128 244,187 244,251 16 Treasury cash holdings2 428 449 473 447 451 456 460 470 479 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 5,713 5,155 8,798 5,440 4,220 5,950 4,825 6,463 6,964 18 Foreign 264 228 240 249 217 210 286 216 227 19 Service-related balances and adjustments 1,967 2,054 2,125 2,033 2,241 2,097 2,003 2,477 2,085 20 Other 349 406 373 337 439 472 352 321 310 21 Other Federal Reserve liabilities and capital 7,744 8,025 8,121 7,933 8,136 8,106 7,728 7,779 8,236 22 Reserve balances with Federal Reserve Banks3 32,489 34,896 35,893 35,228 34,234 34,674 34,774 36,039 36,453 End-of-month figures Wednesday figures 1989 1989 Feb. Mar. Apr. Mar. 15 Mar. 22 Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 258,429 258,215 279,013 258,317 258,051 258,208 255,866 260,806 270,211 24 U.S. government securities1 229,499 228,643 244,506 229,212 228,207 227,924 224,317 230,451 234,000 2 2 5 6 B H o e u ld g h u t n o d u er t ri r g e h p t u rchase agreements.... 229,4990 228,6430 23 9 4 , , 6 8 9 0 8 8 229,2120 228,2070 227,9240 224,3170 230,4510 22 4 9 , , 1 8 1 8 7 3 27 Federal agency obligations 6,779 6,779 10,495 6,779 6,779 6,779 6,779 6,779 7,775 2 2 8 9 H Bo el u d g h u t n o d u er t ri r g e h p t u rchase agreements.... 6,7790 0 6,7790 0 6 3 , , 6 8 5 4 4 10 6,7790 0 6,7790 0 6,7790 0 6,7790 0 6,7790 0 6,7 9 7 9 9 60 30 Acceptances 31 Loans 1,602 2,454 1,952 1,391 2,262 2,305 2,505 2,288 6,669 32 Float 1,296 559 545 1,441 872 920 2,080 745 917 33 Other Federal Reserve assets 19,253 19,780 21,515 19,494 19,931 20,280 20,185 20,543 20,850 34 Gold stock2 11,061 11,061 11,061 11,060 11,060 11,061 11,060 11,060 11,061 35 Special drawing rights certificate account.. 5,018 5,368 5,518 5,018 5,168 5,368 5,518 5,518 5,518 36 Treasury currency outstanding 18,911 18,961 19,017 18,941 18,951 18,961 18,975 18,989 19,003 ABSORBING RESERVE FUNDS 37 Currency in circulation 240,733 242,880 243,411 242,438 242,483 242,818 243,648 244,575 244,204 38 Treasury cash holdings 432 457 476 450 456 457 468 479 477 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 6,298 4,462 22,952 4,283 5,012 5,254 5,697 5,787 13,395 40 Foreign 326 351 352 269 207 224 207 177 194 41 Service-related balances and adjustments 1,595 1,671 1,667 1,600 1,600 1,671 1,671 1,672 1,671 42 Other 517 380 481 474 370 593 296 286 298 43 Other Federal Reserve liabilities and capital 8,127 7,681 8,969 7,689 7,880 7,874 7,437 7,818 8,059 44 Reserve balances with Federal Reserve Banks3 35,390 35,723 37,968 36,133 35,222 34,707 31,994 35,579 37,495 1. Includes securities loaned—fully guaranteed by U.S. government securities stock. Revised data not included in this table are available from the Division of pledged with Federal Reserve Banks—and excludes any securities sold and Research and Statistics, Banking Section. scheduled to be bought back under matched sale-purchase transactions. 3. Excludes required clearing balances and adjustments to compensate for 2. Revised for periods between October 1986 and April 1987. At times during float. this interval, outstanding gold certificates were inadvertently in excess of the gold NOTE. For amounts of currency and coin held as reserves, see table 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Monthly averages9 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1986 1987 1988 1988 1989 Dec. Dec. Dec. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Reserve balances with Reserve Banks2 37,360 37,673 37,830 36,421 36,997 37,830 36,475 32,834 34,623r 35,841 ?. Total vault cash3 24,077 26,185 27,197 27,198 26,745 27,197 28,376 29,776 27,059 26,746 3 Vault4 22,199 24,449 25,909 25,494 25,410 25,909 26,993 27,859 25,589 25,456 4 Surplus 1,878 1,736 1,288 1,705 1,335 1,288 1,383 1,917 1,470 1,290 5 Total reserves 59,560 62,123 63,739 61,915 62,407 63,739 63,468 60,693 60,212r 61,297 7 E R x eq ce u s ir s e d re s re e s rv e e rv b es a lances at Reserve Banks i 58 1 , , 1 3 9 6 1 9 61 1 , , 0 0 9 2 4 9 62 1 , , 6 0 9 4 9 0 60 1 , , 8 0 5 6 3 2 61 1 , , 2 1 8 1 7 9 62 1 , , 6 0 9 4 9 0 62 1 , , 3 1 2 4 3 5 59 1 , , 5 1 3 5 9 4 59,2 9 5 5 5 7 r 60,5 7 1 8 1 7 8 Total borrowings at Reserve Banks 827 777 1,716 2,299 2,861 1,716 1,662 1,487 1,813 2,289 9 Seasonal borrowings at Reserve Banks 38 93 130 332 186 130 76 97 139 213 10 Extended credit at Reserve Banks 303 483 1,244 1,781 2,322 1,244 1,046 1,050 1,334 1,707 Biweekly averages of daily figures for weeks ending 1989 Jan. 11 Jan. 25 Feb. 8 Feb. 22 Mar. 8 Mar. 22 Apr. 5r Apr. iy May 3 May 17 11 Reserve balances with Reserve Banks2 38,724 36,514 32,260 32,455 34,485 34,702 34,623 36,239 35,889 33,892 12 Total vault cash 27,904 27,414 31,488 29,739 27,581 26,738 27,095 26,339 27,106 26,644 13 Vault* 26,679 26,243 29,318 27,838 25,962 25,332 25,659 25,174 25,723 25,352 14 Surplus5. 1,225 1,171 2,170 1,901 1,620 1,406 1,436 1,166 1,383 1,292 15 Total reserves 65,403 62,757 61,578 60,293 60,446 60,034 60,282 61,413 61,612 59,244 16 Required reserves 64,256 61,786 60,035 59,278 59,490 59,299 58,977 61,190 60,344 58,369 17 Excess reserve balances at Reserve Banks 1,147 972 1,543 1,016 957 735 1,305 223 1,269 876 18 Total borrowings at Reserve Banks 2,048 1,527 1,270 1,477 1,800 1,586 2,177 2,582 1,968 1,739 19 Seasonal borrowings at Reserve Banks 94 61 78 99 116 136 167 190 265 323 20 Extended credit at Reserve Banks 1,208 1,028 792 1,111 1,250 1,164 1,675 1,970 1,387 1,213 1. These data also appear in the Board's H.3 (502) release. For address, see in- with Federal Reserve Banks, which exclude required clearing balances and side front cover. adjustments to compensate for float, plus vault cash used to satisfy reserve 2. Excludes required clearing balances and adjustments to compensate for requirements. Such vault cash consists of all vault cash held during the lagged float. computation period by institutions having required reserve balances at Federal 3. Dates refer to the maintenance periods in which the vault cash can be used Reserve Banks plus the amount of vault cash equal to required reserves during the to satisfy reserve requirements. Under contemporaneous reserve requirements, maintenance period at institutions having no required reserve balances. maintenance periods end 30 days after the lagged computation periods in which 7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy the balances are held. reserve requirements less required reserves. 4. Equal to all vault cash held during the lagged computation period by institutions having required reserve balances at Federal Reserve Banks plus the 8. Extended credit consists of borrowing at the discount window under the amount of vault cash equal to required reserves during the maintenance period at terms and conditions established for the extended credit program to help institutions having no required reserve balances. depository institutions deal with sustained liquidity pressures. Because there is 5. Total vault cash at institutions having no required reserve balances less the not the same need to repay such borrowing promptly as there is with traditional amount of vault cash equal to their required reserves during the maintenance short-term adjustment credit, the money market impact of extended credit is period. similar to that of nonborrowed reserves. 6. Total reserves not adjusted for discontinuities consist of reserve balances 9. Data are prorated monthly averages of biweekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • July 1989 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1988 week ending Monday MMaattuurriittyy aanndd ssoouurrccee June 20 June 27 July 4 July 11 July 18 July 25 Aug. 1 Aug. 8 Aug. 15 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 70,096 66,210 75,686 72,579 70,622 68,388 71,992 67,616 69,245 2 For all other maturities 11,008 10,981 10,101 10,493 10,721 10,653 11,289 10,782 11,136 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 31,159 29,594 29,279 30,899 30,891 28,342 26,473 28,408 27,188 4 For all other maturities 7,176 6,487 6,326 5,900 5,792 5,682 5,947 6,654 7,463 Repurchase agreements on U.S. government and federal agency securities in immediately available funds Brokers and nonbank dealers in securities 5 For one day or under continuing contract 15,705 14,676 14,746 14,510 14,962 14,802 15,502 16,127 16,293 6 For all other maturities 15,692 15,319 13,027 13,204 14,749 15,276 15,402 15,083 14,913 All other customers 7 For one day or under continuing contract 25,348 25,741 24,921 24,778 24,766 26,015 26,956 26,384 26,803 8 For all other maturities 10,794 10,766 9,658 9,192 9,064 9,332 9,970 9,845 10,381 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 36,889 33,377 38,379 34,467 37,210 34,405 35,329 34,700 35,575 10 To all other specified customers 16,479 13,030 15,731 13,947 16,052 14,474 14,160 15,158 15,511 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. 2. Brokers and nonbank dealers in securities; other depository institutions; These data also appear in the Board's H.5 (507) release. For address, see inside foreign banks and official institutions; and United States government agencies, front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Extended credit2 AAddjjuussttmmeenntt ccrreeddiitt aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk 5/2 O 6 n /8 9 Ef d fe a c te ti ve Pre ra v t i e o us 5/2 O 6 n /8 9 Ef d fe a c te ti ve Pre r v at i e o us 5/2 O 6 n /8 9 Eff d e a c te ti ve Pre r v at i e o us Effective date Boston 7 2/24/89 6 to 7 2/24/89 6to 10.25 5/18/89 10.35 5/4/89 New York 2/24/89 2/24/89 5/18/89 5/4/89 Philadelphia 2/24/89 2/24/89 5/18/89 5/4/89 Cleveland 2/24/89 2/24/89 5/18/89 5/4/89 Richmond 2/24/89 2/24/89 5/18/89 5/4/89 Atlanta 2/24/89 2/24/89 5/18/89 5/4/89 Chicago 2/24/89 2/24/89 5/18/89 5/4/89 St. Louis 2/24/89 2/24/89 5/18/89 5/4/89 Minneapolis 2/24/89 2/24/89 5/18/89 5/4/89 Kansas City 2/24/89 2/24/89 5/18/89 5/4/89 Dallas 2/27/89 2/27/89 5/18/89 5/4/89 San Francisco ... 7 2/24/89 6to 7 2/24/89 6to 10.25 5/18/89 10.35 5/4/89 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range(or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1980-——JJuullyy 78 10-11 10 11998844——AApprr.. 9 8to-9 9 1978—Jan. 9 6-6to 6to 79 10 10 13 9 9 20 6to 6to Sept. 76 11 11 Nov. 21 8to-9 8to May 11 6to-7 7 Nov. 17 12 12 26 8to 8 to 12 i-7m 77 Vi Dec. 5 12-13 13 Dec. 24 8 8 July 3 10 7V4 7V4 1981-——MMaayy 5 13-14 14 11998855——MMaayy 20 7to-8 7 to Aug. 21 73/4 73/4 8 14 14 24 7to 7to Sept. 22 8 8 Nov. 7 13-14 13 Oct. 16 8-8to 8to 6 13 13 1986—Mar. 7 7-7 to 7 20 8to 8to Dec. 4 12 12 10 7 7 Nov. 1 8to-9to 9to Apr. 21 6to-7 6 to 3 9to 9to 1982---JJuullyy 70 llto-12 llto July 11 6 6 73 1 lto llto AAuugg.. 21 5to-6 5to 1979—July 20 10 10 Aug. 7 11-11VS 11 22 5to 5to Aug. 17 lo-ioto ioto 3 11 11 20 10to ioto 7161 ioto ioto 11998877——SSeepptt.. 4 5to-6 6 Sept. 19 ioto-11 11 lo-ioto 10 11 6 6 21 11 11 30 . . 10 10 Oct. 8 11-12 12 Oct. 17 9to-10 9to 11998888——AAuugg.. 9 6-6to 6to 10 12 12 13 . 9to 9to 11 6to 6to Nov. 77 9-9 to 9 1980—Feb. 15 12-13 13 76 9 9 1989—Feb. 24 6to-7 7 19 13 13 Dec. 14 8to-9 9 27 7 7 May 29 12-13 13 15 8to-9 8to 30 12 12 17 .. 8to 8to In effect May 26, 1989 7 7 June 13 11-12 11 16 11 11 1. Adjustment credit is available on a short-term basis to help depository in no case will the rate charged be less than the basic discount rate plus 50 basis institutions meet temporary needs for funds that cannot be met through reason- points. The flexible rate is reestablished on the first business day of each able alternative sources. After May 19,1986, the highest rate established for loans two-week reserve maintenance period. At the discretion of the Federal Reserve to depository institutions may be charged on adjustment credit loans of unusual Bank, the time period for which the basic discount rate is applied may be size that result from a major operating problem at the borrower's facility. shortened. Seasonal credit is available to help smaller depository institutions meet regular, 4. For earlier data, see the following publications of the Board of Governors: seasonal needs for funds that cannot be met through special industry lenders and Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical that arise from a combination of expected patterns of movement in their deposits Digest, 1970-1979. and loans. A temporary simplified seasonal program was established on Mar. 8, In 1980 and 1981, the Federal Reserve applied a surcharge to short-term 1985, and the interest rate was a fixed rate to percent above the rate on adjustment adjustment credit borrowings by institutions with deposits of $500 million or more credit. The program was reestablished for 1986 and 1987; but was not renewed for that had borrowed in successive weeks or in more than four weeks in a calendar 1988. 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 adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and ance is not reasonably available from other sources, when exceptional circum- to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective stances or practices involve only a particular institution or when an institution is Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the experiencing difficulties adjusting to changing market conditions over a longer formula for applying the surcharge was changed from a calendar quarter to a period of time. moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. 3. For extended-credit loans outstanding more than 30 days, a flexible rate somewhat above rates on market sources of funds ordinarily will be charged, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • July 1989 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the Type of deposit, and Monetary Control Act deposit interval Effective date Net transaction accounts $0 million-$41.5 million.... 12/20/88 More than $41.5 million ... 12/20/88 Nonpersonal time deposits5 By original maturity Less than 1 Vl years 10/6/83 l'/i 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, 4. The Monetary Control Act of 1980 requires that the amount of transaction nonpersonal time deposits, and Eurocurrency liabilities) of each depository accounts against which the 3 percent reserve requirement applies be modified institution be subject to a zero percent reserve requirement. The Board is to adjust annually by 80 percent of the percentage increase in transaction accounts held by the amount of reservable liabilities subject to this zero percent reserve require- all depository institutions, determined as of June 30 each year. Effective Dec. 20, ment each year for the succeeding calendar year by 80 percent of the percentage 1988 for institutions reporting quarterly and Dec. 27, 1988 for institutions increase in the total reservable liabilities of all depository institutions, measured reporting weekly, the amount was increased from $40.5 million to $41.5 million. on an annual basis as of June 30. No corresponding adjustment is to be made in 5. In general, nonpersonal time deposits are time deposits, including savings the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2 deposits, that are not transaction accounts and in which a beneficial interest is million to $3.4 million. In determining the reserve requirements of depository held by a depositor that is not a natural person. Also included are certain institutions, the exemption shall apply in the following order: (1) net NOW transferable time deposits held by natural persons and certain obligations issued accounts (NOW accounts less allowable deductions); (2) net other transaction to depository institution offices located outside the United States. For details, see accounts; and (3) nonpersonal time deposits or Eurocurrency liabilities starting section 204.2 of Regulation D. with those with the highest reserve ratio. With respect to NOW accounts and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1988 1989 TTyyppee ooff ttrraannssaaccttiioonn 11998866 11998877 11998888 Sept. Oct. Nov. Dec. Jan. Feb. Mar. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 22,604 18,983 8,223 1,280 375 3,599 1,125 0 0 0 2 Gross sales 2,502 6,051 587 0 0 0 0 154 3,688 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 1,000 9,029 2,200 0 0 0 0 600 1,600 0 Others within 1 year 5 Gross purchases 190 3,659 2,176 0 0 0 1,084 0 0 0 6 Gross sales 0 300 0 0 0 0 0 0 0 0 7 Maturity shift 18,674 21,504 23,854 1,368 1,669 5,264 1,750 620 5,418 2,646 8 Exchange -20,180 -20,388 -24,588 -1,646 -916 -2,391 -1,703 -2,703 -2,308 -2,322 9 Redemptions 0 70 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 893 10,231 5,485 0 0 0 1,824 0 0 0 11 Gross sales 0 452 800 0 0 0 0 3 225 0 12 Maturity shift -17,058 -17,975 -17,720 -1,368 -1,544 -3,088 -1,750 -541 -5,319 -2,646 13 Exchange 16,985 18,938 22,515 1,646 639 2,091 1,703 2,492 2,008 2,322 5 to 10 years 14 Gross purchases 236 2,441 1,579 0 0 0 562 0 0 0 15 Gross sales 0 0 175 0 0 0 0 20 0 0 16 Maturity shift -1,620 -3,529 -5,946 0 -125 -2,145 0 -79 -100 0 17 Exchange 2,050 950 1,797 0 276 300 0 212 200 0 Over 10 years 18 Gross purchases 158 1,858 1,398 0 0 0 432 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 0 -188 0 0 -31 0 0 0 0 21 Exchange 1,150 500 275 0 0 0 0 0 100 0 All maturities 22 Gross purchases 24,081 37,170 18,863 1,280 375 3,599 5,028 0 0 0 23 Gross sales 2,502 6,803 1,562 0 0 0 0 177 3,913 0 24 Redemptions 1,000 9,099 2,200 0 0 0 0 600 1,600 0 Matched transactions 25 Gross sales 927,999 950,923 1,168,484 113,886 98,804 98,618 93,650 94,204 110,393 83,677 26 Gross purchases 927,247 950,935 1,168,142 113,384 97,897 100,680 93,584 94,252 112,472 82,821 Repurchase agreements2 27 Gross purchases 170,431 314,621 152,613 35,800 4,715 17,867 15,575 17,208 0 0 28 Gross sales 160,268 324,666 151,497 30,191 7,727 16,463 14,815 21,969 0 0 29 Net change in U.S. government securities 29,988 11,234 15,872 6,386 -3,544 7,064 5,721 -5,489 -3,434 -856 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 398 276 587 0 75 14 135 148 40 0 Repurchase agreements2 33 Gross purchases 31,142 80,353 57,259 12,107 2,223 4,763 7,672 8,980 0 0 34 Gross sales 30,521 81,350 56,471 8,225 4,454 5,132 6,853 11,081 0 0 35 Net change in federal agency obligations 222 -1,274 198 3,882 -2,306 -383 683 -2,249 -40 0 36 Total net change in System Open Market Account 30,212 9,961 16,070 10,268 -5,850 6,681 6,404 -7,738 -3,474 -856 1. Sales, redemptions, and negative figures reduce holdings of the System Open 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers Market Account; all other figures increase such holdings. Details may not add to acceptances in repurchase agreements, totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • July 1989 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1989 1989 Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 Feb. Mar. Apr. Consolidated condition statement ASSETS 1 Gold certificate account 11,061 11,060 11,060 11,061 11,060 11,057 11,061 11,061 2 Special drawing rights certificate account 5,368 5,518 5,518 5,518 5,518 5,018 5,368 5,518 3 490 476 470 469 470 480 481 466 Loans 4 To depository institutions 2,305 2,505 2,288 6,669 1,759 863 2,454 1,952 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 6,779 6,779 6,779 66,,777799 66,,665544 66,,881199 66,,777799 66,,665544 8 Held under repurchase agreements 0 0 0 996 2,057 0 0 3,841 U.S. Treasury securities Bought outright 9 Bills 107,292 103,685 107,640 107,072 106,912 112,076 108,011 111,997 10 Notes 90,603 90,603 92,497 92,497 92,497 90,928 90,603 92,497 11 Bonds 30,029 30,029 30,314 30,314 30,314 29,929 30,029 30,314 12 Total bought outright2 227,924 224,317 230,451 229,883 229,723 232,933 228,643 234,808 13 Held under repurchase agreements 0 0 0 4,117 6,281 0 0 9,698 14 Total U.S. Treasury securities 227,924 224,317 230,451 234,000 236,004 232,933 228,643 244,506 15 Total loans and securities 237,008 233,601 239,518 248,444 246,474 240,615 237,876 256,953 16 Items in process of collection 6,709 9,168 7,046 8,094 7,462 9,959 7,069 8,294 17 Bank premises 758 761 759 759 760 754 761 761 Other assets 18 Denominated in foreign currencies 10,661 10,673 10,739 10,777 10,788 9,824 10,471 10,911 19 All other 8,861 8,751 9,045 9,314 9,585 9,065 8,548 9,843 20 Total assets 280,916 280,008 284,155 294,436 292,117 286,771 281,635 303,807 LIABILITIES 21 Federal Reserve notes 224,804 225,618 226,535 226,147 225,418 221,619 224,857 225,336 Deposits 22 To depository institutions 36,378 33,665 37,251 39,166 37,592 35,810 37,394 37,968 23 U.S. Treasury—General account 5,254 5,697 5,787 13,395 13,429 11,766 4,462 22,952 24 Foreign—Official accounts 224 207 177 194 166 279 351 352 25 Other 593 296 286 298 596 390 380 481 26 Total deposits 42,449 39,865 43,501 53,053 51,783 48,245 42,587 61,753 27 Deferred credit items 5,789 7,088 6,301 7,177 6,673 9,161 6,510 7,749 28 Other liabilities and accrued dividends 3,191 3,087 3,151 3,394 3,549 3,079 3,265 3,990 29 Total liabilities 276,233 275,658 279,488 289,771 287,423 282,104 277,219 298,828 CAPITAL ACCOUNTS 30 Capital paid in 2,130 2,132 2,135 2,137 2,134 2,117 2,131 2,135 31 Surplus 2,112 2,110 2,112 2,112 2,112 2,112 2,107 2,112 32 Other capital accounts 441 108 420 416 448 438 194 732 33 Total liabilities and capital accounts 280,916 280,008 284,155 294,436 292,117 286,771 281,635 303,807 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 234,526 237,034 236,746 238,903 237,403 229,817 235,732 236,761 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 268,437 268,327 268,837 269,432 269,819 269,942 268,232 270,007 36 LESS: Held by bank 43,633 42,708 42,302 43,285 44,401 48,323 43,374 44,671 37 Federal Reserve notes, net 224,804 225,618 226,535 226,147 225,418 221,619 224,857 225,336 Collateral held against notes net: 38 Gold certificate account 11,061 11,060 11,060 11,061 11,060 11,057 11,061 11,061 39 Special drawing rights certificate account 5,368 5,518 5,518 5,518 5,518 5,018 5,368 5,518 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 208,375 209,040 209,957 209,568 208,840 205,544 208,428 208,757 42 Total collateral 224,804 225,618 226,535 226,147 225,418 221,619 224,857 225,336 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 1989 1989 Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 Feb. 28 Mar. 31 Apr. 28 2,305 2,505 2,288 6,669 1,759 863 2,454 1,952 2 Within 15 days 2,294 2,436 2,206 6,566 1,741 854 2,402 1,876 3 16 days to 90 days 11 69 82 103 18 9 52 76 4 91 days to 1 year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. Treasury securities—Total 227,924 224,317 230,450 234,000 236,004 232,933 228,643 234,808 10 Within 15 days1 12,081 11,091 9,823 11,249 15,499 5,457 7,183 8,412 11 16 days to 90 days 50,630 47,170 55,396 55,086 52,478 58,957 53,969 56,503 73,434 74,602 71,770 74,317 74,678 73,405 76,037 76,544 1 1 3 4 O O v v e e r r 5 1 y y e e a a r r s t o to 5 1 y 0 e y ar e s a rs 2 5 1 7 1 2 , , , 0 9 7 0 8 8 9 9 1 5 2 1 1 7 2 , , , 6 0 7 6 0 8 4 9 1 5 2 1 7 3 3 , , , 2 1 0 9 0 6 2 1 8 5 2 1 7 3 3 , , , 2 0 0 9 0 5 2 3 3 5 2 1 7 3 3 , , , 2 0 0 9 0 5 2 4 3 5 2 1 6 5 2 , , , 9 5 6 0 2 8 9 4 1 5 2 1 1 7 2 , , , 6 0 7 6 0 8 4 9 1 5 2 1 3 7 3 , , , 0 2 0 0 9 5 4 2 3 16 Federal agency obligations—Total 6,779 6,779 6,779 7,775 8,711 6,819 6,779 6,654 17 Within 15 days1 240 190 179 1,260 2,142 136 240 85 18 16 days to 90 days 726 758 699 614 719 835 726 719 19 91 days to 1 year 1,279 1,297 1,292 1,292 1,280 1,303 1,279 1,279 20 Over 1 year to 5 years 3,357 3,462 3,447 3,447 3,412 3,359 3,357 3,412 21 Over 5 years to 10 years 988 930 973 973 970 997 988 970 22 Over 10 years 189 142 189 189 188 189 189 189 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • July 1989 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1988r 1989 1985 1986 1987 1988 IItteemm Dec/ Dec/ Dec/ Dec/ Sept. Oct. Nov. Dec. Jan/ Feb/ Mar/ Apr. Seasonally adjusted ADJUSTED FOR - CHANGES IN RESERVE REQUIREMENTS^ 1 Total reserves3 48.49 58.14 58.69 60.71 60.82 60.86 60.85 60.71 60.37 60.26 59.85 59.47 2 Nonborrowed reserves 47.17 57.31 57.92 58.99 57.98 58.56 57.99 58.99 58.71 58.77 58.04 57.18 3 Nonborrowed reserves plus extended credit4 47.67 57.62 58.40 60.23 60.04 60.34 60.31 60.23 59.75 59.82 59.38 58.89 4 Required reserves 47.44 56.77 57.66 59.67 59.85 59.80 59.73 59.67 59.23 59.11 58.90 58.69 5 Monetary base 219.51 241.45 257.99 275.50 272.42 273.66 274.38 275.50 276.78 277.55 278.61 278.68 Not seasonally adjusted 6 Total reserves3 49.59 59.46 60.06 62.21 60.51 60.37 60.96 62.21 62.07 59.37 58.94 60.02 7 Nonborrowed reserves 48.27 58.64 59.28 60.50 57.67 58.07 58.10 60.50 60.40 57.88 57.13 57.73 8 Nonborrowed reserves plus extended credit 48.77 58.94 59.76 61.74 59.73 59.85 60.42 61.74 61.45 58.93 58.46 59.44 9 Required reserves 48.53 58.09 59.03 61.17 59.53 59.31 59.84 61.17 60.92 58.22 57.98 59.23 10 Monetary base 222.73 245.25 262.08 279.71 271.44 272.29 275.32 279.71 277.92 274.36 275.62 278.13 NOT ADJUSTED FOR , CHANGES IN RESERVE REQUIREMENTS0 11 Total reserves3 48.14 59.56 62.12 63.74 62.15 61.92 62.41 63.74 63.47 60.69 60.21 61.30 12 Nonborrowed reserves 46.82 58.73 61.35 62.02 59.31 59.62 59.55 62.02 61.81 59.21 58.40 59.01 13 Nonborrowed reserves plus extended credit4 47.32 59.04 61.83 63.27 61.37 61.40 61.87 63.27 62.85 60.26 59.73 60.71 14 Required reserves 47.08 58.19 61.09 62.70 61.18 60.85 61.29 62.70 62.32 59.54 59.25 60.51 15 Monetary base 223.53 247.71 266.16 283.18 274.87 275.78 278.65 283.18 281.31 277.66 278.94 281.53 1. Latest monthly and biweekly figures are available from the Board's H.3(502) the terms and conditions established for the extended credit program to helpdestatistical release. Historical data and estimates of the impact on required reserves pository institutions deal with sustained liquidity pressures. Because there isnot of changes in reserve requirements are available from the Monetary and Reserves 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 reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1 Billions of dollars, averages of daily figures 1989 IItteemm22 D 19 e 8 c 5 . D 19 e 8 c 6 . D 19 e 8 c 7 . D 19 e 8 c 8 . Jan. Feb/ Mar/ Apr. Seasonally adjusted 1 Ml 620.5 725.9 752.3 790.3r 786.3 787.4 786.3 783.2 2 M2 2,567.4 2,811.2 2,909.9 3,069.3 3,065.6'' 3.069.7 3,079.8 3,081.8 3 M3 3,201.7 3,494.9 3,677.6 3,915.2' 3,920. r 3.929.8 3,952.0 3,960.4 4 L 3,830.6 4,137.1 4,340.5 4,681.4' 4,686.9' 4.701.8 4.737.6 n.a. 5 Debt 6,719.9 7,576.8 8,283.9 8,995.5' 9,052.3' 9.125.9 9.194.7 n.a. Ml components 6 Currency . 167.8 180.5 196.4 211.8 213.4 214.3 215.6 215.9 7 Travelers checks 5.9 6.5 7.1 7.6 7.6 7.5 7.3 7.3 8 Demand deposits 267.3 303.2 288.3 288.6 284.0 284.8 284.3 281.5 9 Other checkable deposits6 179.5 235.8 260.4 282.3 281.3 280.9 279.1 278.5 Nontransactions components 10 In M27 1,946.9 2,085.3 2,157.7 2,279.1 2,279.3' 2,282.3 2,293.5 2,298.6 11 In M3 only8 634.3 683.7 767.6 845.8' 854.4' 860.1 872.2 878.6 Savings deposits9 12 Commercial Banks 125.0 155.8 178.5 192.5 190.8 190.3 188.6 185.6 13 Thrift institutions 176.6 215.2 237.8 238.8 237.0 234.3 232.2 227.3 Small-denomination time deposits10 14 Commercial Banks 383.3 364.6 385.3 443.1 451.0' 461.0 472.0 485.6 15 Thrift institutions 499.2 489.3 528.8 582.2 584.7r 587.4 589.0 597.1 Money market mutual funds 16 General purpose and broker-dealer. 176.5 208.0 221.1 239.4 241.6 247.4 256.5 260.2 17 Institution-only 64.5 84.4 89.6 87.6 89.3 89.6 87.6 87.7 Large-denomination time deposits11 18 Commercial Banks12 285.1 288.8 325.4 364.9 370.7' 378.2 385.5 392.6 19 Thrift institutions 151.5 150.1 162.0 172.9 173.7 173.4 173.4 175.2 Debt components 20 Federal debt 1,585.3 1,805.8 1,957.5 2,113.8 2,122.1 2,139.6 2,162.0 n.a. 21 Nonfederal debt 5,134.6 5,771.1 6,326.3 6,881.6'' 6,930.2' 6,986.4 7,032.7 n.a. Not seasonally adjusted 22 Ml 633.5 740.4 766.4 804.4' 793.0 772.3 775.1 791.4 23 M2 2.576.2 2,821.1 2,918.7 3,077.0 3,075.9' 3,057.2 3.073.2 3,093.3 24 M3 3.213.3 3,507.4 3,688.5 3,925.0' 3,927.5' 3,917.7 3,946.8 3,965.9 25 L 3,843.7 4,152.0 4,354.9 4,695.1' 4,703.6' 4,698.9 4.734.3 n.a. 26 Debt 6,710.2 7,561.0 8,266.0 8,982.2' 9,037.1' 9,095.5 9,166.3 n.a. Ml components 27 Currency 170.2 183.0 199.3 214.9 211.8 211.9 213.9 215.1 28 Travelers checks* 5.5 6.0 6.5 6.9 7.0 7.1 7.0 7.0 29 Demand deposits 276.9 314.0 298.6 298.8 290.5 275.7 275.8 283.3 30 Other checkable deposits 180.9 237.4 262.0 283.7 283.7 277.6 278.3 286.0 Nontransactions components 31 M27.... 1,942.7 2,080.7 2,152.3 2,272.7 2,282.9' 2,284.9 2,298.1 2,302.0 32 M3 only8 637.1 686.3 769.8 848.0' 851.6' 860.5 873.6 872.6 Money market deposit accounts 33 Commercial Banks 332.8 379.6 358.8 352.5 348.3 342.5 340.1 336.3 34 Thrift institutions 180.7 192.9 167.5 150.3 146.8 142.9 140.2 135.0 Savings deposits9 35 Commercial Banks 123.7 154.2 176.6 190.3 189.3 188.2 187.8 186.2 36 Thrift institutions 174.8 212.7 234.8 235.6 233.6 230.5 230.7 227.9 Small-denomination time deposits10 37 Commercial Banks 384.0 365.3 386.1 444.1 453.0' 462.8 473.0 483.6 38 Thrift institutions 499.9 489.8 529.1 582.4 588.5' 591.6 592.0 598.0 Money market mutual funds 39 General purpose and broker-dealer. 176.5 208.0 221.1 239.4 241.6 247.4 256.5 260.2 40 Institution-only 64.5 84.4 89.6 87.6 89.3 89.6 87.6 87.7 Large-denomination time deposits11 41 Commercial Banks 285.4 289.1 325.8 365.6 370.3 378.1 387.0 390.5 42 Thrift institutions 151.8 150.7 163.0 174.0 174.9 174.3 173.2 173.7 Debt components 43 Federal debt 1,583.7 1,803.9 1,955.6 2,111.8 2,121.4 2,133.6 2,148.9 n.a. 44 Nonfederal debt 5,126.4 5,757.2 6,310.4 6,870.4' 6,915.8' 6,961.9 7,017.3 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • July 1989 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) Debt: Debt of domestic nonfinancial sectors consists of outstanding credit release. Historical data are available from the Monetary and Reserves Projection market debt of the U.S. government, state and local governments, and private section, Division of Monetary Affairs, Board of Governors of the Federal Reserve nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- System, Washington, D.C. 20551. sumer credit (including bank loans), other bank loans, commercial paper, bankers 2. Composition of the money stock measures and debt is as follows: acceptances, and other debt instruments. The source of data on domestic Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt of depository institutions; (2) travelers checks of nonbank issuers; (3) demand data are based on monthly averages. deposits at all commercial banks other than those due to depository institutions, 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of the U.S. government, and foreign banks and official institutions less cash items in depository institutions. the process of collection and Federal Reserve float; and (4) other checkable 4. Outstanding amount of U.S. dollar-denominated travelers checks of nondeposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- bank issuers. Travelers checks issued by depository institutions are included in matic transfer service (ATS) accounts at depository institutions, credit union demand deposits. share draft accounts, and demand deposits at thrift institutions. 5. Demand deposits at commercial banks and foreign-related institutions other M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) than those due to depository institutions, the U.S. government, and foreign banks issued by all commercial banks and overnight Eurodollars issued to U.S. residents and official institutions less cash items in the process of collection and Federal by foreign branches of U.S. banks worldwide, MMDAs, savings and small- Reserve float. denomination time deposits (time deposits—including retail RPs—in amounts of 6. Consists of NOW and ATS balances at all depository institutions, credit less than $100,000), and balances in both taxable and tax-exempt general purpose union share draft balances, and demand deposits at thrift institutions. and broker-dealer money market mutual funds. Excludes individual retirement 7. Sum of overnight RPs and overnight Eurodollars, money market fund accounts (IRA) and Keogh balances at depository institutions and money market balances (general purpose and broker-dealer), MMDAs, and savings and small funds. Also excludes all balances held by U.S. commercial banks, money market time deposits. funds (general purpose and broker-dealer), foreign governments and commercial 8. Sum of large time deposits, term RPs, and term Eurodollars of U.S. banks, and the U.S. government. residents, money market fund balances (institution-only), less the estimated M3: M2 plus large-denomination time deposits and term RP liabilities (in amount of overnight RPs and Eurodollars held by institution-only money market amounts of $100,000 or more) issued by commercial banks and thrift institutions, funds. term Eurodollars held by U.S. residents at foreign branches of U.S. banks 9. Savings deposits exclude MMDAs. worldwide and at all banking offices in the United Kingdom and Canada, and 10. Small-denomination time deposits—including retail RPs—are those issued balances in both taxable and tax-exempt, institution-only money market mutual in amounts of less than $100,000. All individual retirement accounts (IRA) and funds. Excludes amounts held by depository institutions, the U.S. government, Keogh accounts at commercial banks and thrifts are subtracted from small time money market funds, and foreign banks and official institutions. Also subtracted deposits. is the estimated amount of overnight RPs and Eurodollars held by institution-only 11. Large-denomination time deposits are those issued in amounts of $100,000 money market mutual funds. or more, excluding those booked at international banking facilities. L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term 12. Large-denomination time deposits at commercial banks less those held by Treasury securities, commercial paper and bankers acceptances, net of money money market mutual funds, depository institutions, and foreign banks and market mutual fund holdings of these assets. official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 1.22 BANK DEBITS AND DEPOSIT TURNOVER1 Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1988 1989 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr Sept. Oct. Nov. Dec. Jan. Feb. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 188,346.0 217,116.2 226,888.4 227,617.3 235,980.5 238,497.5 245,617.5 252,226.7 255,774.3 2 Major New York City banks 91,397.3 104,496.3 107,547.3 108,741.8 114,876.4 112,071.8 111,115.5 109,875.9 121,770.1 3 Other banks 96,948.8 112,619.8 119,341.2 118,875.5 121,104.1 126,425.7 134,502.0 142,350.8 134,004.2 4 ATS-NOW accounts4 2,182.5 2,402.7 2,757.7 2,871.2 2,820.2 2,897.2 3,020.8 2,976.2 3,054.9 5 Savings deposits 403.5 526.5 583.0 578.6 521.3 574.9 640.7 647.4 649.2 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 556.5 612.1 641.2 651.0 659.7 676.6 698.5 716.3 734.4 7 Major New York City banks 2,498.2 2,670.6 2,903.5 3,102.4 3,086.1 3,034.6 3,140.7 3,113.7 3,618.0 8 Other banks 321.2 357.0 376.8 377.9 377.9 400.6 425.3 449.3 425.9 9 ATS-NOW accounts4 15.6 13.8 14.7 15.1 14.8 15.1 15.8 15.6 16.0 10 Savings deposits 3.0 3.1 3.1 3.1 2.8 3.1 3.4 3.5 3.5 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 188,506.7 217,125.1 227,010.7 224,089.2 227,485.2 228,743.0 258,119.4 257,649.6 231,347.8 12 Major New York City banks 91,500.1 104,518.8 91,242.6 107,115.7 111,019.4 108,689.1 117,470.7 112,480.2 110,047.2 13 Other banks 97,006.7 112,606.2 119,445.7 116,973.5 116,465.8 120,053.9 140,648.8 145,169.4 121,300.6 14 ATS-NOW accounts4 2,184.6 2,404.8 2,754.7 2,951.1 2,805.4 2,714.1 3,163.8 3,245.1 2,762.1 15 MMDA 1,609.4 1,954.2 2,430.1 2,409.4 2,325.8 2,539.7 2,940.5 3,072.5 2,622.4 16 Savings deposits 404.1 526.8 578.0 570.1 540.9 523.7 655.6 668.7 573.3 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 556.7 612.3 641.7' 642.9 639.8' 643.3 699.1 713.7 683.1 18 Major New York City banks 2,499.1 2,674.9 2,901.4 3,046.4 3,059.1 2,998.6 3,058.1 2,998.6 3,255.7 19 Other banks 321.2 356.9 377.1 373.3 364.8 375.9 425.2 448.7' 397.8 20 ATS-NOW accounts4 15.6 13.8 14.7 15.6 14.9 14.3 16.3 16.7 14.5 21 MMDA6 4.5 5.3 6.9 6.9 6.7 7.3 8.4 8.9 7.8 22 Savings deposits 3.0 3.1 3.1 3.1 2.9 2.8 3.5 3.6 3.1 1. Historical tables containing revised data for earlier periods may be obtained of states and political subdivisions. from the Monetary and Reserves Projections Section, Division of Monetary 4. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. counts authorized for automatic transfer to demand deposits (ATS). ATS data are 20551. available beginning December 1978. These data also appear on the Board's G.6 (406) release. For address, see inside 5. Excludes 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 Domestic Nonfinancial Statistics • July 1989 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1988 1989 CCaatteeggoorryy May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted 1 Total loans and securities2 2,325.5 2,343.5 2,358.5 2,371.4 2,373.5 2,392.6 2,400.6 2,408.0 2,412.8 2,441.8 2,454.9 2,461.0 2 U.S. government securities 346.4 348.8 349.3 350.9 353.2 356.0 358.5 362.4 361.8 363.4 370.3 372.2 3 Other securities 196.4 196.7 196.9 196.7 195.4 196.6 195.3 192.9 188.0 188.5 187.8 185.3 4 Total loans and leases 1,782.7 1,797.9 1,812.3 1,823.9 1,825.0 1,839.9 1,846.8 1,852.7 1,863.0 1,889.9 1,896.8 1,903.5 5 Commercial and industrial ..... 584.5 589.3 594.9 595.3 594.3 597.8 598.9 599.7 604.5 616.5 614.5' 616.3 6 Bankers acceptances held ... 4.4 4.3 4.3 4.2 4.1 4.1 4.3 4.1 4.3 4.1 4.0 4.0 7 Other commercial and 8 U i . n S d . u a s d tr d i r a e l ssees4 5 5 8 7 0 3 . . 1 2 5 57 8 8 4 . . 1 9 5 5 9 8 0 3 . . 6 7 5 58 9 4 1 . . 4 0 5 58 9 3 0 . . 5 3 5 58 9 7 3 . . 3 8 5 58 9 8 4 . . 5 6 5 5 9 8 5 9 . . 6 6 6 59 0 4 0 . . 5 2 6 6 1 0 2 7 . . 4 5 6 6 1 0 0 5 . . 5 0 ' ' 6 6 0 1 7 2 . . 4 3 9 Non-U.S. addressees 6.9 6.8 6.9 6.7 6.8 6.5 6.2 6.0 5.7 5.0 5.5 4.9 10 Real estate 620.5 626.9 633.3 640.3 646.9 654.7 659.3 664.8 671.2 678.3 685.4' 694.8 11 Individual 341.9 343.4 344.6 346.5 348.9 350.8 352.3 355.1 357.0 357.9 359.9 362.2 12 Security 39.7 39.5 38.9 39.7 36.7 38.4 37.9 37.9 37.0 44.0 42.9 39.3 13 Nonbank financial institutions 30.6 30.6 31.0 31.0 30.5 30.2 30.0 29.9 30.1 30.5 29.6 29.1 14 Agricultural 29.5 29.6 29.6 29.6 29.6 29.8 30.3 30.7 30.7 30.7 30.7 30.4 15 State and political subdivisions 49.4 49.2 48.8 48.2 48.0 48.7 47.9 47.1 44.8' 45.0' 45.r 45.2 16 Foreign banks 8.0 88..11 8.2 8.2 7.5 7.8 8.2 7.5 7.6 8.2 7.9 8.0 17 Foreign official institutions 5.1 55..00 5.0 5.2 5.2 5.1 5.4 5.6 5.6 5.5 5.5 5.6 18 Lease financing receivables 26.2 26.8 27.5 27.6 27.8 27.9 28.0 28.1 28.3 28.4 28.6 28.6 19 All other loans 47.2 49.6 50.4 52.3 49.4 48.7 48.7 46.4 46.2 44.8 46.6r 44.0 Not seasonally adjusted 20 Total loans and securities2 2,326.5 2,346.6 2,352.6 2,364.4 2,370.9 2,383.8 2,399.6 2,420.3 2,420.7 2,443.6 2,452.8' 2,463.9 21 U.S. government securities 345.6 347.8 347.9 351.1 353.0 352.9 357.2 362.7 363.6 367.9 371.8' 372.4 2 2 2 3 T O o th ta e l r l s o e a c n u s r i a t n ie d s leases2 1,7 1 8 9 4 6 . . 2 7 1,8 1 0 9 1 6 . . 9 9 1,8 1 0 9 8 6 . . 2 4 1,8 1 1 9 6 7 . . 3 0 1,8 1 2 9 2 5 . . 7 2 1,8 1 3 9 5 5 . . 5 4 1,8 1 4 9 7 5 . . 0 4 1,8 1 6 9 5 2 . . 0 7 1,8 1 6 9 7 0 . . 0 1 1,8 1 8 8 7 8 . . 4 3 1,8 1 9 8 4 7 . . 0 0 1,9 1 0 8 6 5 . . 3 2 2 2 5 4 Co B m a m nk e e rc rs i a a l c a c n e d p t i a n n d c u e s s t ri h al e ld .. 3. . . . . . 58 4 8 . . 4 3 59 4 3 . . 5 1 59 4 3 . . 4 9 59 4 1 . . 3 0 58 4 9 . . 2 5 59 4 3 . . 1 2 59 4 6 . . 2 5 60 4 2 . . 0 8 60 4 3 . . 1 8 61 4 5 . . 0 9 61 3 7 . . 9 8 ' 62 3 0 . . 9 9 26 Other commercial and 2 2 7 8 N U o .S n . i - n U a d d . u S d s . r t e r a i s a d s l d e e re s4 s sees4 5 5 8 7 7 3 6 . . . 1 9 8 5 5 8 8 6 8 1 . . . 9 5 7 5 5 8 8 6 9 2 . . . 9 5 6 5 5 8 8 6 6 0 . . . 7 6 1 5 5 8 7 6 5 8 . . . 5 4 8 5 5 8 8 6 3 9 . . . 1 0 1 5 5 9 8 6 2 6 . . . 1 2 2 5 59 9 6 2 8 . . . 1 6 7 ' 5 5 9 9 5 9 4 . . . 4 7 4 6 6 1 0 5 1 6 . . . 4 8 5 e 60 ia 5 8 . . . 4 y 5 ' 6 6 1 1 5 1 7 . . . 4 6 0 29 Real estate 619.5 626.8 633.7 641.5 648.6 655.6 661.1 666.1 671.2 676.4 682.8' 692.7 30 Individual 339.9 342.0 343.5 346.7 350.5 351.8 353.3 359.0 359.8 357.2 357.0 359.6 31 Security 40.7 41.2 38.6 38.5 35.3 36.9 37.3 38.3 37.4 43.1 43.5 41.3 32 Nonbank financial institutions 30.8 30.8 31.0 30.9 30.4 29.8 30.1 30.9 30.6 29.9 29.0 29.0 33 Agricultural 29.3 29.9 30.3 30.4 30.5 30.6 30.5 30.5 30.1 29.8 29.6 29.6 34 State and political subdivisions 49.3 48.9 48.2 47.7 47.4 48.2 47.3 46.9 46.3r 46. <y 45.7' 45.4 35 Foreign banks 7.7 7.9 8.4 8.1 7.7 7.9 8.2 7.8 7.8 8.3 7.7 7.7 36 Foreign official institutions 5.1 5.0 5.0 5.2 5.2 5.1 5.4 5.6 5.6 5.5 5.5 5.6 37 Lease financing receivables .... 26.2 26.8 27.4 27.5 27.7 27.8 27.9 28.3 28.6 28.5 28.6 28.7 38 All other loans 47.5 49.5 48.3 49.0 49.9 48.6 49.3 48.8 45.8r 47.0 46.8' 45.8 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 All 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars Source May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted 1 Total nondeposit funds .. 209.8 214.0' 215.1 219.3 209.9 210.8 217.2 214.5 207.7 211.6 213.0 206.7 2 Net balances due to related foreign offices 726.1 729.9 733.5 735.4 735.5 741.8 745.0 753.8 763.4' 779.1' 784.5' 790.6 3 Borrowings from other than commercial banks in United States 202.7 205.8' 201.3 200.3 201.8 205.3 208.0 207.9 199.8 201.0 204.9 203.8 4 Domestically chartered banks 170.0 172.0' 166.9 165.8 165.8 167.1 168.7 168.9 162.8 161.8 166.9 165.3 5 Foreign-related banks 32.6 33.8 34.4 34.5 35.9 38.2 39.3 39.0 36.9 39.2 38.0 38.5 Not seasonally adjusted 6 Total nondeposit funds . 217.3 217.1 210.6 218.2 206.4 204.7 213.9 208.9 206.8 216.4 218.6' 209.4 7 Net balances due to related foreign offices 9.7 8.7 10.7 18.6 9.1 5.1 10.2 9.1 7.5 10.3 7.1 .8 8 Domestically chartered banks -16.5 -16.3 -14.1 -7.3 -15.7 -20.5 -19.2 -20.7 -20.5 -17.9 -19.8 -23.1 9 Foreign-related banks 26.2 25.0 24.8 25.9 24.8 25.5 29.3 29.8 28.1 28.2 26.9 23.9 10 Borrowings from other than commercial banks in United States4 207.6 208.4 199.9 199.5 197.3 199.6 203.7 199.8 199.3 206.1 211.6 208.6 11 Domestically chartered banks 174.6 173.3'" 165.0 165.3 162.1 162.8 167.4 162.8 161.2 165.6 172.1 169.3 12 Federal funds and security RP borrowings 170.0 168.4 159.6 160.3 157.6 158.8 162.8 159.3 157.8 162.4 168.6 165.0 13 Other6 4.6 4.8 5.4 5.0 4.4 4.1 4.6 3.5 3.4 3.2 3.5 4.3 14 Foreign-related banks6 33.0 35.2 34.9 34.2 35.3 36.8 36.3 37.0 38.1 40.5 39.5 39.4 MEMO Gross large time deposits 15 Seasonally adjusted 399.8 403.2 408.4 414.6 419.7 423.2 424.5 429.2 434.9 440.3' 446.6' 452.7 16 Not seasonally adjusted 398.9 401.8 405.9 415.1 421.7 424.7 425.6 429.8 434.5' 440.2' 448.1' 450.6 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 23.9 22.0 21.3 17.1 23.5 27.2 23.0 24.9 20.3 20.3 20.3 20.9 18 Not seasonally adjusted 30.4 21.0 22.0 11.9 24.6 27.7 16.3 22.9 25.0 25.9 18.1 20.2 1. Commercial banks are those in the 50 states and the District of Columbia 4. Other borrowings are borrowings through any instrument, such as a promwith national or state charters plus agencies and branches of foreign banks, New issory note or due bill, given for the purpose of borrowing money for the banking York investment companies majority owned by foreign banks, and Edge Act business. This includes borrowings from Federal Reserve Banks and from foreign corporations owned by domestically chartered and foreign banks. banks, term federal funds, loan RPs, and sales of participations in pooled loans. These data also appear in the Board's G.10 (411) release. For address, see 5. Based on daily average data reported weekly by approximately 120 large inside front cover. banks and quarterly or annual data reported by other banks. 2. Includes federal funds, RPs, and other borrowing from nonbanks and net 6. Figures are partly daily averages and partly averages of Wednesday data. balances due to related foreign offices. 7. Time deposits in denominations of $100,000 or more. Estimated averages of 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at compositions with own IBFs. mercial banks. Averages of daily data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • July 1989 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1988 1989 AAccccoouunntt June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. ALL COMMERCIAL BANKING INSTITUTIONS^ 1 Loans and securities 2,514.5 2,512.1 2,526.3 2,524.9 2,541.5 2,581.3 2,592.0 2,576.7 2,613.5 2,616.8 2,613.0 2 Investment securities 520.4 523.5 526.7 527.0 525.0 531.3 533.0 533.3 535.5 538.7 538.1 3 U.S. government securities 328.8 332.6 335.1 336.5 334.7 340.8 345.9 348.8 352.9 357.1 358.3 4 Other 191.6 190.8 191.6 190.5 190.4 190.5 187.1 184.5 182.6 181.6 179.8 5 Trading account assets 22.0 23.9 22.7 21.2 24.9 24.8 19.2 21.5 20.1 21.8 17.8 6 Total loans 1,972.1 1,964.8 1,977.0 1,976.7 1,991.6 2,025.2 2,039.7 2,022.0 2,057.9 2,056.3 2,057.1 7 Interbank loans 164.8 159.7 156.8 153.2 160.0 170.6 165.4 159.9 173.0 154.5 150.4 8 Loans excluding interbank 1,807.3 1,805.1 1,820.1 1,823.5 1,831.6 1,854.6 1,874.3 1,862.1 1,884.9 1,901.8 1,906.7 9 Commercial and industrial 596.4 591.0 589.0 589.2 591.6 598.5 606.1 602.2 615.2 619.5 622.9 10 Real estate 630.2 635.2 645.1 651.0 656.3 663.1 669.3 672.2 677.0 687.2 694.8 11 Individual 342.4 343.8 348.9 351.6 352.5 354.7 361.3 359.9 357.3 357.1 361.1 12 All other 238.3 235.0 237.2 231.8 231.2 238.3 237.5 227.9 235.4 238.1 227.9 13 Total cash assets 221.6 217.1 222.1 215.0 208.5 235.1 244.4 214.7 226.0 210.5 214.2 14 Reserves with Federal Reserve Banks. 34.4 30.7 33.0 31.1 31.7 33.8 34.5 31.6 27.8 30.9 33.4 15 Cash in vault 26.6 26.0 26.6 26.3 26.4 28.8 30.5 27.6 26.7 27.0 27.0 16 Cash items in process of collection ... 77.0 75.5 79.7 76.2 72.8 89.6 92.0 76.2 88.8 75.7 77.8 17 Demand balances at U.S. depository institutions 31.6 31.3 31.5 29.4 29.2 32.1 34.3 27.8 32.5 27.9 27.6 18 Other cash assets 52.0 53.5 51.3 52.0 48.4 50.8 53.2 51.5 50.1 48.9 48.4 19 Other assets 195.0 189.3 188.4 193.4 201.4 201.2 199.4 195.0 191.4 193.3 200.5 20 Total assets/total liabilities and capital 2,931.1 2,918.5 2,936.8 2,933.3 2,951.3 3,017.7 3,035.8 2,986.4 3,030.8 3,020.6 3,027.8 21 Deposits 2,044.4 2,052.1 2,075.1 2,060.0 2,069.4 2,122.8 2,142.9 2,093.9 2,121.8 2,120.1 2,131.6 22 Transaction deposits 603.8 598.9 609.9 588.5 587.4 627.7 641.5 585.5 601.4 581.9 594.0 23 Savings deposits 544.7 545.5 542.4 536.8 538.4 542.2 537.0 530.2 528.7 524.6 513.3 24 Time deposits 895.9 907.6 922.7 934.7 943.6 952.9 964.4 978.2 991.7 1,013.5 1,024.3 25 Borrowings 486.6 469.2 448.7 468.3 479.5 476.7 470.9 491.8 500.9 482.3 485.3 26 Other liabilities 211.3 209.9 222.4 215.5 211.9 224.2 229.0 204.8 212.3 219.9 211.3 27 Residual (assets less liabilities) 188.8 187.3 190.6 189.5 190.6 193.9 193.1 195.8 195.8 198.5 199.6 MEMO 28 U.S. government securities (including trading account) 345.4 350.2 352.0 352.7 354.5 360.3 359.9 365.9 367.8 373.7 371.2 29 Other securities (including trading account) 197.1 197.1 197.4 195.5 195.3 195.8 192.3 188.9 187.8 186.8 184.7 DOMESTICALLY CHARTERED COMMERCIAL BANKSJ 30 Loans and securities 2,318.4 2,322.9 2,334.5 2,332.7 2,347.3 2,382.9 2,385.5 2,378.3 2,399.0 2,401.2 2,401.2 31 Investment securities 493.8 496.3 499.7 501.2 499.2 505.7 508.0 507.5 509.4 513.5 514.2 32 U.S. government securities 317.0 320.2 323.2 324.9 323.4 329.6 334.9 336.3 340.0 344.7 346.1 33 Other 176.8 176.1 176.4 176.3 175.8 176.1 173.0 171.2 169.3 168.8 168.1 34 Trading account assets 22.0 23.9 22.7 21.2 24.9 24.8 19.2 21.5 20.1 21.8 17.8 35 Total loans 1,802.5 1,802.7 1,812.1 1,810.2 1,823.3 1,852.4 1,858.3 1,849.4 1,869.5 1,865.9 1,869.2 36 Interbank loans 135.0 132.1 127.8 124.2 129.6 139.4 132.2 130.6 138.2 121.2 119.2 37 Loans excluding interbank 1,667.5 1,670.6 1,684.3 1,686.0 1,693.6 1,713.1 1,726.1 1,718.7 1,731.3 1,744.7 1,750.1 38 Commercial and industrial 493.9 492.6 490.6 489.9 492.4 498.1 499.5 498.7 503.0 504.9 509.1 39 Real estate 612.5 618.0 626.1 631.8 636.6 642.3 648.5 651.3 655.6 665.4 672.5 40 Individual 342.1 343.5 348.5 351.2 352.2 354.4 361.0 359.6 357.0 356.8 360.8 41 All other 219.0 216.6 219.0 213.1 212.4 218.3 217.1 209.2 215.8 217.6 207.7 42 Total cash assets 202.4 197.1 203.5 194.2 190.4 216.0 223.2 193.7 206.6 191.7 194.8 43 Reserves with Federal Reserve Banks. 32.9 29.6 31.4 29.0 29.9 32.6 33.1 30.1 26.6 29.5 30.7 44 Cash in vault 26.6 26.0 26.6 26.3 26.4 28.8 30.4 27.6 26.7 26.9 27.0 45 Cash items in process of collection ... 76.6 75.2 79.4 75.8 72.0 88.8 91.2 75.4 87.8 74.9 76.9 46 Demand balances at U.S. depository institutions 29.8 29.5 29.8 27.4 27.3 30.2 32.2 25.9 30.5 25.8 26.0 47 Other cash assets 36.4 36.9 36.4 35.7 34.8 35.5 36.2 34.8 35.1 34.6 34.3 48 Other assets 125.5 121.5 123.6 126.7 131.9 132.9 134.9 127.8 129.1 129.6 134.6 49 Total assets/liabilities and capital 2,646.2 2,641.5 2,661.5 2,653.6 2,669.6 2,731.7 2,743.6 2,699.8 2,734.7 2,722.5 2,730.6 50 Deposits 1,979.2 1,986.8 2,009.0 1,992.7 2,001.0 2,053.0 2,069.9 2,022.6 2,049.1 2,043.6 2,053.5 51 Transaction deposits 595.0 590.2 601.1 579.4 577.6 617.5 631.5 576.0 591.9 572.6 584.1 52 Savings deposits 542.0 543.0 539.9 534.3 535.8 539.7 534.5 527.8 526.3 522.1 510.7 53 Time deposits 842.2 853.6 868.0 879.0 887.6 895.8 903.9 918.8 930.9 949.0 958.6 54 Borrowings 371.8 359.9 345.3 359.0 364.7 365.6 363.1 376.2 378.1 362.4 367.9 55 Other liabilities 109.8 111.0 120.1 115.8 116.7 122.6 120.9 108.6 115.2 121.4 113.1 56 Residual (assets less liabilities) 185.4 183.9 187.2 186.1 187.2 190.5 189.7 192.4 192.4 195.1 196.2 MEMO 57 Real estate loans, revolving 34.9 35.4 36.3 37.4 38.4 39.5 40.1 40.6 41.4 42.5 43.4 58 Real estate loans, other 577.6 582.6 589.8 594.4 598.2 602.8 608.4 610.7 614.2 622.8 629.2 1. Back data are available from the Banking and Monetary Statistics section, the last Wednesday of the month based on a weekly reporting sample of Board of Governors of the Federal Reserve System, Washington, D.C., 20551. foreign-related institutions and quarter-end condition reports. These data also appear in the Board's weekly H.8 (510) release. 2. Commercial banking institutions include insured domestically chartered Figures are partly estimated. They include all bank-premises subsidiaries and commercial banks, branches and agencies of foreign banks, Edge Act and other significant majority-owned domestic subsidiaries. Loan and securities data Agreement corporations, and New York State foreign investment corporations. for domestically chartered commercial banks are estimates for the last Wednes- 3. Insured domestically chartered commercial banks include all member banks day of the month based on a sample of weekly reporting banks and quarter-end and insured nonmember banks. condition report data. Data for other banking institutions are estimates made for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures Mar. 1 Mar. 8 Mar. 15 Mar. 22 Mar. 29 Apr. 5 Apr. 12 Apr. 19 1 Cash and balances due from depository institutions ... 126,717 105,721 122,164 105,800 106,336 108,707 108,674 111,460 2 Total loans, leases, and securities, net 1,197,078 1,191,126 1,188,628 1,190,791 1,188,322' 1,191,656 1,184,269 1,197,536 3 U.S. Treasury and government agency 135,554 135,825 136,316 137,003 137,141 137,151 135,280 136,043 4 Trading account 15,656 16,003 16,996 17,497 16,646 16,661 14,647 15,554 5 Investment account 119,898 119,822 119,320 119,506 120,495 120,490 120,632 120,489 6 Mortgage-backed securities3 49,191' 49,221' 49,228' 49,247' 49,551' 49,784 49,884 50,291 All other maturing in 7 One year or less 23,162 22,536 21,702 21,737 22,076 22,731 22,488 21,566 8 Over one through five years 39,960 40,249 40,769 40,893 41,203' 40,380 40,687 41,048 9 Over five years 7,586' 7,816' 7,621' 7,628' 7,665' 7,595 7,573 7,583 10 Other securities 72,658 72,147 72,072 71,857 71,956 71,884 71,670 71,563 11 Trading account 1,772 1,438 1,570 1,459 1,278 1,180 898 1,057 12 Investment account 70,885 70,709 70,503 70,398 70,678 70,704 70,773 70,506 13 States and political subdivisions, by maturity 44,650 44,617 44,594 44,595 44,676 44,548 44,752 44,708 14 One year or less 4,853' 4,917' 4,930' 4,902' 4,935' 4,934 4,989 5,001 15 Over one year 39,796' 39,700' 39,665' 39,693' 39,741' 39,614 39,763 39,707 16 Other bonds, corporate stocks, and securities 26,236 26,091 25,908 25,803 26,002 26,157 26,020 25,798 17 Other trading account assets 3,759 4,176 4,172 3,841 3,916 4,160 4,229 4,019 18 Federal funds sold4 89,676 86,543 81,683 84,524 80,522 78,932 75,610 79,567 19 To commercial banks 54,917 56,732 50,769 52,365 48,221 50,332 45,614 52,244 20 To nonbank brokers and dealers in securities 24,564 20,558 21,186 23,084 22,548 19,822 21,718 20,415 21 To others 10,194 9,253 9,728 9,074 9,753 8,778 8,278 6,908 22 Other loans and leases, gross 935,227 932,196 934,140 933,238 934,230' 938,962 936,793 945,671 23 Other loans, gross 910,994' 907,986 909,784 908,884 909,817' 914,545 912,310 921,196 24 Commercial and industrial 311,379' 311,234' 311,704' 311,992' 310,662' 312,534 311,791 314,139 25 Bankers acceptances and commercial paper 1,662 1,701 1,719 1,655 1,675 1,626 1,664 1,598 26 All other 309,718' 309,533' 309,985' 310,336' 308,987' 310,908 310,127 312,541 27 U.S. addressees 307,825' 307,674' 308,163' 308,529' 307,100' 309,100 308,358 310,794 28 Non-U.S. addressees 1,893 1,859 1,822 1,807 1,886 1,808 1,769 1,746 29 Real estate loans 312,931' 313,096' 314,064' 316,202' 318,147' 319,222 319,731 321,281 30 Revolving, home equity 22,970' 23,003' 23,142' 23,179' 23,262' 23,333 23,406 23,650 31 All other 289,96C 290,093' 290,922' 293,022' 294,885' 295,889 296,326 297,631 32 To individuals for personal expenditures 169,456' 169,208' 169,289' 168,791' 168,154' 167,984 168,168 168,857 33 To depository and financial institutions 45,784' 44,392' 43,986 42,554 40,744 42,819 43,118 44,400 34 Commercial banks in the United States 20,999' 19,997' 20,026 19,250 17,515 19,557 19,452 20,277 35 Banks in foreign countries 3,954 3,635 3,302 3,345 3,501 3,261 3,430 3,545 36 Nonbank depository and other financial institutions 20,831 20,760 20,659 19,958 19,728 20,000 20,237 20,578 37 For purchasing and carrying securities 13,723 13,989 13,464 13,429 15,134 14,468 13,552 15,395 38 To finance agricultural production 5,620' 5,631' 5,646' 5,639' 5,496' 5,522 5,538 5,561 39 To states and political subdivisions 28,014' 27,838' 27,932' 27,960' 27,955' 27,806 27,759 27,642 40 To foreign governments and official institutions ... 1,836' 1,882' 1,902 1,846 1,858 1,860 1,859 1,842 41 All other 22,250' 20,716' 21,796 20,470 21,666 22,331 20,793 22,079 42 Lease financing receivables 24,234 24,210 24,356 24,354 24,413 24,416 24,483 24,475 43 LESS: Unearned income 4,922 4,938 4,924 4,940 4,942 4,917 4,923 4,935 44 Loan and lease reserve5 34,873 34,823 34,831 34,730 34,501' 34,516 34,391 34,393 45 Other loans and leases, net 895,432 892,435 894,384 893,568 894,786' 899,529 897,480 906,344 46 All other assets 134,240 132,857 133,197 133,499 128,612' 135,415 133,785 136,946 47 Total assets 1,458,035 1,429,705 1,443,989 1,430,091 1,423,269' 1,435,778 1,426,729 1,445,942 48 Demand deposits 252,033 220,427 245,217 214,306 217,185 234,881 224,489 231,148 49 Individuals, partnerships, and corporations 195,103 174,008 188,293 172,436 173,682 184,351 180,754 182,386 50 States and political subdivisions 7,367 5,288 5,7% 6,072 5,209 5,496 5,463 6,064 51 U.S. government 3,452 3,607 11,289 2,977 2,983 5,779 3,751 7,469 52 Depository institutions in the United States 27,839 20,786 23,591 19,220 18,950 22,074 19,650 19,754 53 Banks in foreign countries 7,082 6,170 5,908 5,423 6,461 6,837 5,709 5,748 54 Foreign governments and official institutions 824 798 759 850 682 688 721 788 55 Certified and officers' checks 10,365 9,771 9,581 7,327 9,219 9,656 8,440 8,939 56 Transaction balances other than demand deposits 78,264 77,811 77,028 76,051 75,407 79,940 79,934 83,089 57 Nontransaction balances 659,898 663,868 666,152 666,450 667,661' 671,958 671,606 668,226 58 Individuals, partnerships, and corporations 617,529' 621,350' 623,834' 624,329' 625,512' 630,629 630,114 626,605 59 States and political subdivisions 32,796 33,126 33,042 32,880' 32,572 31,773 32,104 32,236 60 U.S. government 824' 848' 852' 849' 847' 974 967 958 61 Depository institutions in the United States 8,083 7,896 7,794 7,769 8,097 7,923 7,754 7,756 62 Foreign governments, official institutions, and banks 665 647 631 622 633 659 666 670 63 Liabilities for borrowed money 281,329 283,389 270,401 285,842 274,843' 266,595 266,370 279,873 64 Borrowings from Federal Reserve Banks 1,220 5,098 1,155 1,922 1,965 2,240 2,010 6,157 65 Treasury tax-and-loan notes 10,751 6,611 4,862 14,609 11,819 370 2,143 21,011 66 All other liabilities for borrowed money 269,358 271,680 264,384 269,311 261,059' 263,984 262,217 252,706 67 Other liabilities and subordinated notes and debentures 89,125' 86,254' 87,264' 89,390' 89,924' 84,114 85,024 84,674 68 Total liabilities 1,360,648' 1,331,748' 1,346,064' 1,332,039' 1,325,020' 1,337,488 1,327,424 1,347,010 69 Residual (total assets minus total liabilities)7 97,387' 97,956' 97,925' 98,052' 98,249' 98,290 99,305 98,931 MEMO 70 Total loans and leases (gross) and investments adjusted 1,160,957' 1,154,158' 1,157,588 1,158,846 1,162,029' 1,161,200 1,158,517 1,164,343 71 Total loans and leases (gross) adjusted 948,987' 942,010' 945,028 946,146 949,016' 948,005 947,338 952,718 72 Time deposits in amounts of $100,000 or more 210,877 214,127' 214,452' 215,211' 215,388' 215,724 215,278 213,184 73 U.S. Treasury securities maturing in one year or less .. 20,538 20,124 19,526 19,893 20,627 21,183 20,913 20,119 74 Loans sold outright to affiliates—total9 1,588 1,580 1,620 1,882 1,931 1,893 1,915 1,812 75 Commercial and industrial 1,301 1,291 1,328 1,591 1,640 1,605 1,623 1,514 76 Other 287 288 292 291 291 288 292 298 77 Nontransaction savings deposits (including MMDAs)... 253,661 253,182 253,902 252,306 252,068 254,202 252,810 249,739 1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised 6. Includes federal funds purchased and securities sold under agreements to somewhat, eliminating some former reporters with less than $2 billion of assets repurchase; for information on these liabilities at banks with assets of $1 billionor and adding some new reporters with assets greater than $3 billion. more on Dec. 31, 1977, see table 1.13. 2. For adjustment bank data see this table in the March 1989 Bulletin. The 7. This is not a measure of equity capital for use in capital-adequacy analysis or adjustment data for 1988 should be added to the reported data for 1988 to establish for other analytic uses. comparability with data reported for 1989. 8. Exclusive of loans and federal funds transactions with domestic commercial 3. Includes U.S. government-issued or guaranteed certificates of participation banks. in pools of residential mortgages. 9. Loans sold are those sold outright to a bank's own foreign branches, 4. Includes securities purchased under agreements to resell. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if 5. Includes allocated transfer risk reserve. 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 • July 1989 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures Account Mar. 1 Mar. 8 Mar. 15 Mar. 22 Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 1 Cash balances due from depository institutions 32,327 25,138 29,783 22,467 22,559 22,067 20,343 21,720 2 Total loans, leases and securities, net2 225,724 221,173 219,667 222,469 220,634 216,258 216,206 217,159 Securities 0 0 0 0 0 0 0 0 3 U.S. Treasury and government agency3 0 0 0 0 0 0 0 0 4 Trading account3 5 Investment account 15,681 15,525 15,370 15,366 15,382 15,290 15,233 15,227 6 Mortgage-backed securities4 7,096 6,940 6,983 6,950 7,042 7,127 7,079 7,209 All other maturing in 7 One year or less 3,136 2,943 2,878 2,938 2,929 2,791 2,793 2,699 8 Over one through five years 3,450 3,520 3,513 3,507 3,503 3,514 3,504 3,497 9 Over five years 1,9990 2,1220 1,9906 1,9710 1,9070 1,8507 1,8507 1,8202 10 Other securities3 0 0 0 0 0 0 0 0 11 Trading account3 12 Investment account 17,455 17,364 17,261 17,218 17,401 17,466 17,572 17,329 13 States and political subdivisions, by maturity 11,985 11,992 11,989 11,983 11,974 11,954 12,089 12,081 14 One year or less 1,057 1,103 1,107 1,109 1,118 1,120 1,138 1,143 15 Over one year 10,928 10,889 10,882 10,874 10,856 10,834 10,951 10,937 16 Other bonds, corporate stocks, and securities 5,4700 5,3710 5,2720 5,2340 5,4270 5,5120 5,4830 5,2480 17 Other trading account assets Loans and leases 18 Federal funds sold5 37,966 35,244 33,174 37,619 34,382 28,277 29,045 26,660 19 To commercial banks 16,051 17,084 13,684 16,810 13,760 11,705 10,426 10,982 20 To nonbank brokers and dealers in securities 14,847 12,030 13,162 14,622 13,978 10,965 13,283 11,441 21 To others 7,068 6,130 6,328 6,186 6,644 5,607 5,336 4,236 22 Other loans and leases, gross 169,339 167,790 168,609 167,019 168,142 169,810 168,864 172,492 23 Other loans, gross 163,629 162,086 162,792 161,206 162,334 164,007 163,034 166,643 24 Commercial and industrial 57,571 57,195 57,569 57,147 57,497 57,663 57,715 58,070 25 Bankers acceptances and commercial paper 288 322 324 312 312 315 385 297 26 All other 57,284 56,873 57,244 56,835 57,185 57,348 57,330 57,773 27 U.S. addressees 56,822 56,400 56,776 56,338 56,601 56,821 56,764 57,232 28 Non-U.S. addressees 462 473 468 496 584 527 567 541 29 Real estate loans 50,256' 49,98c 50,072 51,475 51,369 51,455 51,482 51,610 30 Revolving, home equity 3,318 3,324 3,333 3,344 3,351 3,357 3,372 3,395 31 Allother 46,939' 46,656' 46,739 48.132 48,018 48,098 48,110 48,216 32 To individuals for personal expenditures 20,249' 20,183' 20,249 19,577 19,590 19,632 19,650 19,790 33 To depository and financial institutions 17,330 16,928 17,100 15,999 14,831 16,619 16,901 17,867 34 Commercial banks in the United States 8,174 8,192 8,372 7,649 6,306 7,999 7,828 8,521 35 Banks in foreign countries 2,417 2,056 1,921 1,948 2.030 2,006 2,102 2,157 36 Nonbank depository and other financial institutions 6,739 6,681 6,806 6,403 6,495 6,614 6,971 7,189 37 For purchasing and carrying securities 5,484 5,463 4,917 5,252 6,260 5,912 5,384 6,785 38 To finance agricultural production 208 191 190 200 162 157 151 158 39 To states and political subdivisions 6,123 6,054 6,098 6,107 6,097 6,074 6,037 6,036 40 To foreign governments and official institutions 450 507 536 480 498 499 484 522 41 All other 5,956 5,586 6,061 4,968 6.031 5,9% 5,229 5,804 42 Lease financing receivables 5,711 5,704 5,817 5,813 5,808 5,803 5,830 5,849 43 LESS: Unearned income 1,598 1,614 1,609 1,620 1,622 1,602 1,607 1,620 44 Loan and lease reserve 13,120 13,136 13,138 13.133 13,050 12,983 12,901 12,929 45 Other loans and leases, net6 154,622 153,039 153,862 152,266 153,469 155,225 154,356 157,943 46 All other assets 64,674 63,461 63,568 63,541 58,465 62,408 60,024 63,297 47 Total assets 322,726 309,772 313,018 308,478 301,659 300,734 296,573 302,175 Deposits 48 Demand deposits 64,702 49,644 60,206 49,079 50,387 54,222 48,041 51,844 49 Individuals, partnerships, and corporations 42,605 33,541 40,304 35,604 35,285 37,433 34,355 37,015 50 States and political subdivisions 997 497 771 722 459 617 464 510 51 U.S. government 605 719 2,949 609 524 1,062 693 1,280 52 Depository institutions in the United States 10,430 5,372 6,990 4,915 4,716 5,414 4,640 4,643 53 Banks in foreign countries 5,781 4,918 4,723 4,248 5,211 5,432 4,492 4,4% 54 Foreign governments and official institutions 600 663 618 723 538 529 596 654 55 Certified and officers' checks 3,683 3,933 3,852 2,258 3,654 3,735 2,801 3,245 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,840 8,744 8,672 8,609 8,588 9,022 9,179 9,791 57 Nontransaction balances 113,115 112,873 114,549 113,605 113,248 114,114 112,866 112,546 58 Individuals, partnerships, and corporations 102,375 102,007 103,788 102,897 102,677 104,093 102,752 102,298 59 States and political subdivisions 8,344 8,445 8,371 8,286 8,031 7,763 7,910 7,%7 60 U.S. government 30 28 28 28 27 24 27 29 61 Depository institutions in the United States 2,127 2,139 2,113 2,144 2,258 1,990 1,936 1,998 62 Foreign governments, official institutions, and banks ... 239 254 249 251 254 243 241 254 63 Liabilities for borrowed money 75,0530 79,506 69,8030 76,7050 68,8100 67,4690 68,9620 71,274 64 Borrowings from Federal Reserve Banks 1,850 1 3,675 65 Treasury tax-and-loan notes 2,915 1,648 933 3,676 2,934 357 5,561 66 All other liabilities for borrowed money 72,138 76,008 68,871 73,029 65,876 67,468 68,605 62,038 67 Other liabilities and subordinated notes and debentures ... 32,874 30,797 31,749 32,410 32,680 27,974 29,199 28,459 68 Total liabilities 294,583 281,564 284,980 280,408 273,712 272,801 268,248 273,914 69 Residual (total assets minus total liabilities)9 28,143 28,207 28,038 28,070 27,946 27,932 28,325 28,261 MEMO 70 Total loans and leases (gross) and investments adjusted2,10 216,217 210,648 212,358 212,763 215,240 211,139 212,460 212,204 71 Total loans and leases (gross) adjusted'0 183,081 177,759 179,727 180,179 182,458 178,383 179,655 179,648 72 Time deposits in amounts of $100,000 or more 42,185 42,726 43,323 42,956 42,517 43,008 42,476 42,661 73 U.S. Treasury securities maturing in one year or less 3,642 3,202 3,396 3,973 3,973 3,692 3,800 3,055 1. These data also appear in the Board's H.4.2 (504) release. For address, see 6. Includes allocated transfer risk reserve. inside front cover. 7. Includes trading account securities. 2. Excludes trading account securities. 8. Includes federal funds purchased and securities sold under agreements to 3. Not available due to confidentiality. repurchase. 4. Includes U.S. government-issued or guaranteed certificates of participation 9. Not a measure of equity capital for use in capital adequacy analysis or for in pools of residential mortgages. other analytic uses. Digitized for FRA5S. EInRcl udes securities purchased under agreements to resell. 10. Exclusive of loans and federal funds transactions with domestic commercial banks. http://fraser.stlouisfed.org/ 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 1989 AAccccoouunntt Mar. 1 Mar. 8 Mar. 15 Mar. 22 Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 1 Cash and due from depository institutions ... 10,827 10,291 10,800 10,509 10,530 10,540 10,614 11,210 11,005 2 Total loans and securities 113311,,559955 129,715 130,023 130,693' 132,516' 129,088 127,266 131,007 130,663 3 U.S. Treasury and government agency securities 8,726 8,846 8,910 8,934 8,500 8,092 8,137 8,890 8,473 4 Other securities. 7,124 7,272 7,176 7,044 6,920 6,977 6,632 6,212 6,213 5 Federal funds sold2 8,338' 8,42C 7,976' 9,090' 9,184' 6,760 5,453 7,310 7,325 6 To commercial banks in the United States. 7,173' 7,246' 6,577' 7,600' 7,767' 5,728 4,146 5,759 5,863 7 To others 1,165 1,174 1,399 1,490 1,417 1,032 1,307 1,551 1,462 8 Other loans, gross 107,407'' 105,177' 105,961' 105,625' 107,912' 107,259 107,044 108,595 108,652 9 Commercial and industrial 7700,,4477CC 6699,,884433rr 7700,,226633'' 7700,,339977'' 7711,,779933'' 7700,,550077 6699,,666611 7711,,221188 71,407 10 Bankers acceptances and commercial paper 1,552 1,613 1,560 1,720 1,669 1,683 1,543 1,698 1,594 11 All other 68,918' 68,230' 68,703' 68,677' 70,124' 68,824 68,118 69,520 69,813 12 U.S. addressees 67,206' 66,580' 67,136' 66,983' 68,508' 67,253 66,593 67,723 68,184 13 Non-U.S. addressees 1,712 1,650 1,567 1,694 1,616 1,571 1,525 1,797 1,629 14 Loans secured by real estate 13,97c 13,974' 14,023' 14,088' 14,065' 14,228 14,593 14,365 14,512 15 To financial institutions 18,903' 17,274' 17,90c 17,312' 17,92c 18,387 18,817 18,728 18,991 16 Commercial banks in the United States.. 13,921r 12,352' 13,140' 12,512' 12,785' 13,398 14,013 13,687 13,967 17 Banks in foreign countries 1,583 1,479 1,341 1,335 1,463 1,389 1,302 1,396 1,547 18 Nonbank financial institutions 33,,339999 33,,444433 33,,441199 33,,446655 33,,667722 33,,660000 3,502 3,645 3,477 19 To foreign governments and official institutions 730 770 763 780 773 744 835 800 822 20 For purchasing and carrying securities 2,102 2,029 1,750 1,832 1,991 1,956 1,691 1,944 1,544 21 All other3 1,232 1,287 1,262 1,216 1,370 1,437 1,447 1,540 1,376 22 Other assets (claims on nonrelated parties) .. 31,613 31,501 31,672 31,188 30,912 30,672 31,532 31,306 31,5% 23 Net due from related institutions 15,842 15,602 15,447 15,655 14,918 17,368 14,749 15,173 14,860 24 Total assets 118899,,887788 118877,,110099 118877,,994444 118888,,004466 118888,,887744 118877,,667700 118844,,116633 118888,,669977 188,124 25 Deposits or credit balances due to other than directly related institutions ...... 45,753 45,469 46,437 47,074 47,185 47,684 47,774 48,275 48,668 26 Transaction accounts and credit balances . 44,,006622 33,,221122 33,,446699 33,,557799 33,,339988 33,,330088 33,,339988 33,,330011 44,,000055 27 Individuals, partnerships, and corporations 2,334 2,078 2,273 2,259 2,354 2,082 2,114 2,013 2,711 28 Other 1,728 1,134 1,196 1,320 1,044 1,226 1,284 1,288 1,294 29 Nontransaction accounts 4411,,669911 4422,,225577 4422,,996688 4433,,449955 4433,,778877 4444,,337766 4444,,337766 4444,,997744 44,663 30 Individuals, partnerships, and corporations 34,634 35,349 36,050 36,620 36,806 37,370 37,595 38,229 37,979 31 Other 77,,005577 66,,990088 66,,991188 66,,887755 66,,998811 77,,000066 66,,778811 66,,774455 6,684 32 Borrowings from other than directly related institutions 83,905 82,921 84,310 80,212 79,584 84,883 79,769 85,717 77,834 33 Federal funds purchased 3366,,552233 3377,,884488 3377,,557722 3322,,332222 3344,,004477 41,775 35,238 39,636 32,094 34 From commercial banks in the United States 20,405 20,950 21,080 16,867 21,215 26,694 19,155 23,994 16,185 35 From others 16,118 16,898 16,492 15,455 12,832 15,081 16,083 15,642 15,909 36 Other liabilities for borrowed money 4477,,338822 4455,,007733 4466,,773388 4477,,889900 4455,,553377 4433,,110088 44,531 46,081 45,740 37 To commercial banks in the United States 31,313 29,698 31,316 30,787 29,174 27,956 29,492 30,353 30,225 38 To others 16,069 15,375 15,422 17,103 16,363 15,152 15,039 15,728 15,515 39 Other liabilities to nonrelated parties 32,826 32,764 32,537 32,270 31,636 31,158 31,885 32,279 33,188 40 Net due to related institutions 27,395 25,954 24,660 28,490 30,470 23,944 24,735 22,425 28,434 41 Total liabilities 189,878 187,109 187,944 188,046 188,874 187,670 184,163 188,697 188,124 MEMO 42 Total loans (gross) and securities adjusted .. 110,501 110,117 110,306 110,581' 111,964' 109,962 109,107 111,561 110,833 43 Total loans (gross) adjusted 94,651 93,999 94,220 94,603' 96,544' 94,893 94,338 96,459 96,147 1. Effective Jan. 4,1989, the reporting panel includes a new group of large U.S. separate component of Other loans, gross. Formerly, these loans were included in branches and agencies of foreign banks. Earlier data included 65 U.S. branches "All other", line 21. and agencies of foreign banks that included those branches and agencies with 4. Includes credit balances, demand deposits, and other checkable deposits. assets of $750 million or more on June 30, 1980, plus those branches and agencies 5. Includes savings deposits, money market deposit accounts, and time that had reached the $750 million asset level on Dec. 31, 1984. These data also deposits. appear in the Board's H.4.2 (504) release. For address, see inside front cover. 6. Includes securities sold under agreements to repurchase. 2. Includes securities purchased under agreements to resell. 7. Exclusive of loans to and federal funds sold to commercial banks in the 3. Effective Jan. 4, 1989, loans secured by real estate are being reported as a United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • July 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 1988 1989 1983 1984 1985 1986 1987 Dec. Dec. Dec. Dec. Dec. Mar. June Sept. Dec. Mar. 1 AU holders—Individuals, partnerships, and corporations 293.5 302.7 321.0 363.6 343.5 328.6 346.5 337.8 354.7 I 2 Financial business 32.8 31.7 32.3 41.4 36.3 33.9 37.2 34.8 38.6 3 Nonfinancial business 161.1 166.3 178.5 202.0 191.9 184.1 194.3 190.3 201.2 n.a. 4 5 C Fo o r n e s i u g m n er 78 3 . . 5 3 81 3 . . 5 6 85 3 . . 5 5 91 3 . . 1 3 90 3 . . 0 4 86 3 . . 9 5 89 3. . 4 8 87 3 . . 8 2 88 3 . . 3 7 1 6 Other 17.8 19.7 21.2 25.8 21.9 20.3 21.9 21.7 22.8 T Weekly reporting banks 1988 1989 1983 1984 1985 1986 1987 Dec. Dec. Dec. Dec. Dec. Mar. June Sept. Dec. Mar. 7 All holders—Individuals, partnerships, and corporations 146.2 157.1 168.6 195.1 183.8 181.8 191.5 185.3 198.3 181.9 8 Financial business 24.2 25.3 25.9 32.5 28.6 27.0 30.0 27.2 30.5 27.2 9 Nonfinancial business 79.8 87.1 94.5 106.4 100.0 98.2 103.1 101.5 108.7 98.6 10 Consumer 29.7 30.5 33.2 37.5 39.1 41.7 42.3 41.8 42.6 41.1 11 Foreign 3.1 3.4 3.1 3.3 3.3 3.4 3.4 3.1 3.6 3.3 12 Other 9.3 10.9 12.0 15.4 12.7 11.4 12.8 11.7 12.9 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 1989 IInnssttrruummeenntt D 19 e 8 c 4 . D 19 e 8 c 5 . D 19 e 8 c 6 . D 19 e 8 c 7 . D 19 e 8 c 8 . Oct. Nov. Dec. Jan. Feb. Mar. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 237,586 298,779 329,991 357,129 455,017 426,216 443,531 455,017 471,066 487,771 492,821 Financial companies1 Dealer-placed paper 2 Total 5566,,448855 7788,,444433 110011,,007722 110011,,995588 115599,,994477 114499,,884455 115577,,004422 115599,,994477 116622,,888844 117733,,994444 172,950 3 Bank-related (not seasonally adjusted) 22,,003355 11,,660022 22,,226655 11,,442288 11,,224488 840 995 11,,224488 n.a. n.a. n.a. Directly placed paper 4 Total 111100,,554433 113355,,332200 115511,,882200 117733,,993399 192,442 184,044 119922,,222200 119922,,444422 119999,,882288 201,997 205,374 5 Bank-related (not seasonally adjusted) 42,105 44,778 40,860 43,173 43,155 42,204 43,729 43,155 n.a. n.a. n.a. 6 Nonfinancial companies 70,558 85,016 77,099 81,232 102,628 92,327 94,269 102,628 108,354 111,830 114,497 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 78,364 68,413 64,974 70,565 66,631 62,253 65,961 66,631 62,212 62,812 62,458 Holder 8 Accepting banks 9,811 11,197 13,423 10,943 9,086 9,083 9,483 9,086 9,009 9,401 8,336 9 Own bills 8,621 9,471 11,707 9,464 8,022 8,026 8,768 8,022 7,927 8,497 7,642 10 Bills bought 11,,119911 11,,772266 11,,771166 11,,447799 11,,006644 1,057 715 11,,006644 11,,008822 904 693 Federal Reserve Banks 11 Own account 0 0 0 0 0 0 0 0 0 0 0 12 Foreign corre spondents 671 937 1,317 965 1,493 1,166 1,393 1,493 1,595 1,579 1,544 13 Others 67,881 56,279 50,234 58,658 56,052 52,004 55,086 56,052 51,608 51,832 52,579 Basis 14 Imports into United States 17,845 15,147 14,670 16,483 14,984 14,064 14,959 14,984 14,917 15,588 14,755 15 Exports from United States 16,305 13,204 12,960 15,227 14,410 14,067 14,578 14,410 13,813 13,927 13,581 16 All other 44,214 40,062 37,344 38,855 37,237 34,122 36,424 37,237 33,482 33,297 34,122 1. Institutions engaged primarily in activities such as, but not limited to, 5. 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. 6. 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. Beginning January 1989, bank-related series have been discontinued. or more in total acceptances. The new reporting group accounts for over 90 4. As reported by financial companies that place their paper directly with percent of total acceptances activity. investors. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Rate Period Av r e a r te a ge Period Av r e a r te a ge Period 1986—Mar. 7 9.00 1986 8.33 1987 —Jan. 7.50 1988 —Jan. Apr. 21 8.50 1987 8.21 Feb. 7.50 Feb. July 11 8.00 1988 9.32 Mar. 7.50 Mar. Aug. 26 7.50 Apr. 7.75 Apr. 1986 —Jan. 9.50 May 8.14 May. 1987—Apr. 1 7.75 Feb. 9.50 June 8.25 June. May 1 8.00 Mar. 9.10 July 8.25 July . 15 8.25 Apr. 8.83 Aug. 8.25 Aug. Sept. 4 8.75 May 8.50 Sept. 8.70 Sept. Oct. 7 9.25 June 8.50 Oct. 9.07 Oct.. 22 9.00 July 8.16 Nov. 8.78 Nov. Nov. 5 8.75 Aug. 7.90 Dec. 8.75 Dec. Sept. 7.50 1988—Feb. 2 8.50 Oct. 7.50 1989 —Jan. May 11 9.00 Nov. 7.50 Feb. July 14 9.50 Dec. 7.50 Mar. Aug. 11 10.00 Apr. Nov. 28 10.50 May. 11.00 1989—Feb. 10 24 1111..0500 June 5 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 Domestic Nonfinancial Statistics • July 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. 1989 1989, week ending Instrument 11998866 11998877 11998888 Jan. Feb. Mar. Apr. Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28 MONEY MARKET RATES 1 Federal funds1,2 6.80 6.66 7.57 9.12 9.36 9.85 9.84 9.88 9.71 9.82 9.95 9.86 2 Discount window borrowing1, 6.32 5.66 6.20 6.50 6.59 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Commercial paper ' 3 1-month 6.61 6.74 7.58 9.03 9.29 9.88 9.77 9.95 9.83 9.82 9.74 9.72 4 3-month 6.49 6.82 7.66 9.04 9.37 9.95 9.81 10.04 9.90 9.88 9.74 9.72 5 6-month , 6.39 6.85 7.68 9.02 9.35 9.97 9.78 10.07 9.90 9.87 9.69 9.65 Finance paper, directly placed4,5 6 1-month 6.57 6.61 7.44 8.90 9.21 9.77 9.70 9.84 9.75 9.74 9.65 9.64 7 3-month 6.38 6.54 7.38 8.78 9.11 9.70 9.70 9.88 9.77 9.76 9.64 9.63 8 6-month 6.31 6.37 7.14 8.44 8.65 9.17 9.29 9.40 9.30 9.35 9.28 9.23 Bankers acceptances '6 9 3-month 6.38 6.75 7.56 8.93 9.27 9.83 9.68 9.90 9.75 9.75 9.63 9.60 10 6-month 6.28 6.78 7.60 8.92 9.26 9.87 9.63 9.97 9.74 9.74 9.54 9.50 Certificates of deposit, secondary market 11 1-month 6.61 6.75 7.59 9.06 9.33 9.91 9.81 9.98 9.86 9.85 9.77 9.75 12 3-month 6.51 6.87 7.73 9.20 9.51 10.09 9.94 10.16 10.03 10.02 9.87 9.84 13 6-month 6.50 7.01 7.91 9.36 9.71 10.40 10.13 10.53 10.28 10.27 10.00 9.96 14 Eurodollar deposits, 3-month8 6.71 7.06 7.85 9.28 9.61 10.18 10.04 10.31 10.14 10.14 10.06 9.98 U.S. Treasury bills5 Secondary market9 15 3-month 5.97 5.78 6.67 8.27 8.53 8.82 8.65 9.00 8.82 8.69 8.55 8.53 16 6-month 6.02 6.03 6.91 8.36 8.55 8.85 8.65 9.06 8.77 8.75 8.51 8.59 17 1-year 6.07 6.33 7.13 8.37 8.55 8.82 8.64 8.94 8.74 8.73 8.56 8.52 Auction average 18 3-month 5.98 5.82 6.68 8.29 8.48 8.83 8.70 9.10 8.87 8.71 8.57 8.66 19 6-month 6.03 6.05 6.92 8.38 8.49 8.87 8.73 9.12 8.84 8.78 8.59 8.72 20 1-year 6.18 6.33 7.17 8.45 8.59 8.68 8.75 n.a. n.a. 8.75 n.a. n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds" Constant maturities 21 1-year 6.45 6.77 7.65 9.05 9.25 9.57 9.36 9.71 9.47 9.48 9.28 9.22 22 2-year 6.86 7.42 8.10 9.18 9.37 9.68 9.45 9.81 9.52 9.56 9.39 9.33 23 3-year 7.06 7.68 8.26 9.20 9.32 9.61 9.40 9.74 9.47 9.53 9.35 9.26 24 5-year 7.30 7.94 8.47 9.15 9.27 9.51 9.30 9.61 9.36 9.42 9.25 9.16 25 7-year 7.54 8.23 8.71 9.14 9.23 9.43 9.24 9.47 9.29 9.36 9.19 9.13 26 10-year 7.67 8.39 8.85 9.09 9.17 9.36 9.18 9.37 9.20 9.27 9.14 9.09 27 20-year 7.84 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 30-year 7.78 8.59 8.96 8.93 9.01 9.17 9.03 9.17 9.05 9.10 9.00 8.95 Composite 29 Over 10 years (long-term) 8.14 8.64 8.98 9.07 9.16 9.33 9.18 9.32 9.21 9.26 9.15 9.10 State and local notes and bonds Moody's series14 30 Aaa 6.95 7.14 7.36 7.23 7.23 7.40 7.37 7.50 7.45 7.35 7.38 7.28 31 Baa 7.76 8.17 7.83 7.67 7.59 7.78 7.82 7.82 7.80 7.82 7.85 7.80 32 Bond Buyer series15 7.32 7.63 7.68 7.35 7.44 7.59 7.49 7.64 7.56 7.54 7.44 7.40 Corporate bonds Seasoned issues16 33 All industries 9.71 9.91 10.18 10.05 10.05 10.18 10.14 10.23 10.16 10.16 10.13 10.11 34 Aaa 9.02 9.38 9.71 9.62 9.64 9.80 9.79 9.88 9.81 9.80 9.80 9.75 35 Aa 9.47 9.68 n.a. 9.81 9.83 9.98 9.94 10.03 9.98 9.97 9.92 9.92 36 A 9.95 9.99 10.24 10.10 10.13 10.26 10.20 10.29 10.25 10.23 10.17 10.16 37 Baa 10.39 10.58 10.83 10.65 10.61 10.67 10.61 10.69 10.60 10.66 10.61 10.59 38 A-rated, recently offered utility bonds17 9.61 9.95 10.20 10.09 10.25 10.37 10.33 10.32' 10.40 10.33 10.33 10.22 MEMO: Dividend/price ratio18 39 Preferred stocks 8.76 8.37 9.23 9.31 9.31 9.43 9.50 9.47 9.53 9.53 9.47 9.48 40 Common stocks 3.48 3.08 3.64 3.64 3.59 3.68 3.59 3.70 3.65 3.62 3.53 3.56 1. Weekly, monthly and annual figures are averages of all calendar days, percentage yield (on a bank discount basis) that they would accept to two decimal where the rate for a weekend or holiday is taken to be the rate prevailing on the places. Thus, average issuing rates in bill auctions will be reported using two preceding business day. The daily rate is the average of the rates on a given day rather than three decimal places. weighted by the volume of transactions at these rates. 11. Yields are based on closing bid prices quoted by at least five dealers. 2. Weekly figures are averages for statement week ending Wednesday. 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 3. Rate for the Federal Reserve Bank of New York. are read from a yield curve at fixed maturities. Based on only recently issued, 4. Unweighted average of offering rates quoted by at least five dealers (in the actively traded securities. case of commercial paper), or finance companies (in the case of finance paper). 13. Averages (to maturity or call) for all outstanding bonds neither due nor Before November 1979, maturities for data shown are 30-59 days, 90-119 days, callable in less than 10 years, including one very low yielding "flower" bond. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 14. General obligations based on Thursday figures; Moody's Investors Service. 150-179 days for finance paper. 15. General obligations only, with 20 years to maturity, issued by 20 state and 5. Yields are quoted on a bank-discount basis, rather than in an investment local governmental units of mixed quality. Based on figures for Thursday. yield basis (which would give a higher figure). 16. Daily figures from Moody's Investors Service. Based on yields to maturity 6. Dealer closing offered rates for top-rated banks. Most representative rate on selected long-term bonds. (which may be, but need not be, the average of the rates quoted by the dealers). 17. Compilation of the Federal Reserve. This series is an estimate of the yield 7. Unweighted average of offered rates quoted by at least five dealers early in on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of the day. call protection. Weekly data are based on Friday quotations. 8. Calendar week average. For indication purposes only. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 9. Unweighted average of closing bid rates quoted by at least five dealers. sample often issues: four public utilities, four industrials, one financial, and one 10. Rates are recorded in the week in which bills are issued. Beginning with the transportation. Common stock ratios on the 500 stocks in the price index. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the 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

Financial Markets A25 1.36 STOCK MARKET Selected Statistics 1988 1989 IInnddiiccaattoorr 11998866 11998877 11998888 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 136.00 161.70 149.91 149.25 151.47 156.36 152.67 155.35 160.40 165.08 169.73 169.38 2 Industrial 155.85 195.31 180.83 179.72 182.18 188.58 182.25 187.75 194.62 200.00 197.58 204.81 3 Transportation 119.87 140.39 134.01 132.52 136.27 141.83 137.51 144.06 153.09 162.66 153.85 164.32 4 Utility 71.36 74.29 72.22 70.67 71.83 74.19 79.28 74.81 75.87 77.84 87.16 79.69 5 Finance 147.19 146.48 127.41 130.77 133.15 136.09 130.05 128.83 132.26 137.19 146.14 143.26 6 Standard & Poor's Corporation (1941-43 = 10)' 236.34 286.83 n.a. 263.73 267.97 277.40 271.02 281.28 285.41 294.01 292.71 302.25 7 American Stock Exchange (Aug. 31, 1973 = 50p 264.38 316.61 294.90 297.76 297.86 302.83 292.25 298.59 316.14 323.96 327.47 336.82 Volume of trading (thousands of shares) 8 New York Stock Exchange 141,385 188,647 161,450 144,668 145,702 162,631 134,427 135,473 168,193 169,321 159,024 161,862 9 American Stock Exchange 11,846 13,832 9,955 9,307 8,198 9,051 8,497 11,227 10,797 11,780 11,395 11,529 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 36,840 31,990 32,740 31,930 32,770 33,410 33,640 32,740 32,530 31,480 32,130 32,610 Free credit balances at brokers4 11 Margin-account 4,880 4,750 5,660 4,655 4,725 5,065 4,920 5,660 5,790 5,605 5,345 5,450 12 Cash-account 19,000 15,640 16,595 14,045 14,175 14,880 15,185 16,595 15,705 16,195 16,045 16,125 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 collatercompanies. With this change the index includes 400 industrial stocks (formerly alized by securities. Margin requirements on securities other than options are the 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 difference between the market value (100 percent) and the maximum loan value of financial. collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; effectively cutting previous readings in half. and Regulation X, effective Nov. 1, 1971. 3. Beginning July 1983, under the revised Regulation T, margin credit at On Jan. 1, 1977, the Board of Governors for the first time established in broker-dealers includes credit extended against stocks, convertible bonds, stocks Regulation T the initial margin required for writing options on securities, setting acquired through exercise of subscription rights, corporate bonds, and govern- it at 30 percent of the current market-value of the stock underlying the option. On ment securities. Separate reporting of data for margin stocks, convertible bonds, Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the and subscription issues was discontinued in April 1984. same as the option maintenance margin required by the appropriate exchange or 4. Free credit balances are in accounts with no unfulfilled commitments to the self-regulatory organization; such maintenance margin rules must be approved by brokers and are subject to withdrawal by customers on demand. the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC 5. New series beginning June 1984. approved new maintenance margin rules, permitting margins to be the price of the 6. These regulations, adopted by the Board of Governors pursuant to the option plus 15 percent of the market value of the stock underlying the option. Securities Exchange Act of 1934, limit the amount of credit to purchase and carry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • July 1989 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1988 1989 Account 1986 198/ May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. FSLIC-insured institutions 1 Assets 1,163,851 1,250,855 1,285,338 1,289,979 1,299,373' 1,311,668' 1,323,840' 1,332,824' 1,332,852' 1,350,906' 1,338,156' 1,339,882 2 Mortgages 697,451 721,593 733,547 736,893 743,083' 775511,,442211'' 775544,,338899'' 776600,,885544'' 776633,,003311'' 776644,,889922'' 776677,,440066'' 767,323 3 Mortgage-backed securities 158,193 201,828 205,053 207,744 208,509' 221100,,557733'' 211,195' 221111,,884444'' 221122,,334488'' 221144,,882211'' 221111,,447755'' 212,589 4 Contra-assets to 5 Comme m rc o i r a t l g a lo g a e n a s s sets' . 2 41 3 , , 7 6 9 8 9 3 2 4 3 2 , , 1 3 6 4 3 4 2 3 4 9 , , 2 7 0 6 1 4 4 2 0 4 , , 2 67 5 2 1 4 24 0 , , 9 2 6 % 4 ' ' 2 3 5 9 , , 0 0 9 7 9 8 ' ' 2 3 4 8 , . 7 5 8 0C 2' 2 3 5 8 , , 1 3 4 0 5 8 ' ' 2 3 5 7 , , 2 7 7 3 6 9 ' ' 3 3 3 7 , , 6 5 6 3 2 4 ' ' 3 37 3 ,4 j2u8' nsr3 3 7 3 , , 0 0 0 4 8 8 6 Consumer loans 51,622 57,902 60,250 6611,,115511// 6611,,557711'' 6622,,441177'' 6611,,555588'' 6611,,005577'' 6611,,550088'' 6622,,006644'' 6622,,336688'' 62,374 7 Contra-assets to nonmortgage loans2 3,041 3,467 3,395 3,513 3,389 33,,111188'' 3,074' 22,,993311'' 22,,996600'' 33,,005555'' 22,,990088'' 2,997 8 Cash and investment securities 164,844 169,717 179,506 177,533 178,459' 175,793' 183,178' 184,778' 180,148' 186,133' 178,617' 177,905 9 Other3 112,898 122,462 125,939 125,751 126,472' 128,561' 130,313' 130,385' 131,240' 129,923' 125,547' 126,648 10 Liabilities and net worth . 1,163,851 1,250,855 1,285,338 1,289,979 1,299,373' 1,311,668' 1,323,840' 1,332,824' 1,332,852' 1,350,906' 1,338,156' 1,339,882 11 Savings capital 890,664 932,616 %3,761 966,750 968,213 968,293 973,742 976,163 971,493' 971,685' 963,815 957,347 12 Borrowed money 196,929 249,917 250,697 257,134 262,745 266,787 273,665' 278,241' 281,033' 299,242' 299,314' 305,607 13 FHLBB 100,025 116,363 114,994 117,287 118,213 120,677 123,436 124,368 127,548' 134,143 135,708' 140,028 14 Other 96,904 133,554 135,703 139,847 144,532 146,110 150,229' 153,873' 153,485' 165,099' 163,606' 165,579 15 Other 23,975 21,941 27,160 24,564' 27,110' 28,903' 26,021' 27,556' 29,176' 24,154' 29,779' 31,798 16 Net worth 52,282 46,382 43,720 41,531 41,304' 47,684' 50,412' 50,864' 51,151' 55,825' 59,193' 59,320 FSLIC-insured federal savings banks 17 Assets 210,562 284,270 323,028 329,736 333,596' 357,897' 367,928' 369,711 374,957 410,097 424,139 18 Mortgages 113,638 116611,,992266 186,818' 119900,,664477 193,15c 220044,,335511'' 207,952' 220099,,772211 221133,,337788 222244,,558844 223311,,997733 19 Mortgage-backed securities 29,766 45,826 51,290 5522,,664488 53,027' 5555,,668888'' 56,399' 5566,,777788 5577,,661199 6644,,777722 6622,,110099 20 Contra-assets to mortgage assets1 . n.a. 9,100 9,735 10,089 10,135 10,893' 10,982' 10,907 10,908 12,034 12,419 21 Commercial loans n.a. 6,504 7,639 7,904 7,916 8,568 8,694 8,886 9,051 8,916 16,371 22 Consumer loans 1133,,118800 1177,,66%% 2200,,442266 2211,,114422 2211,,444499'' 2222,,552266'' 2222,,442200'' 2222,,441144 2222,,667711 2233,,%%22 2255,,005566 23 Contra-assets to nonmortgage loans2 n.a. 678 707 738 699 734' 785 789 803 867 793 24 Finance leases plus interest n.a. 591 652 708 735 791 804 805 833 881 910 n.a. 25 Cash and investment ... n.a. 35,347 39,889 40,286 40,837' 44,859' 48,984' 48,681 48,222 59,424 58,142 26 Other 19,034 24,069 26,758 27,230 27,316' 32,740' 34,442' 34,121 34,895 40,459 37,297 27 Liabilities and net worth . 210,562 284,270 323,028 329,736 333,596' 357,897' 367,928' 369,711 374,957 410,097 424,139 28 Savings capital 157,872 203,1% 232,656 236,759 239,590' 256,223' 261,862' 262,924 263,984 284,822 298,531 29 Borrowed money 37,329 60,716 66,816 69,356 70,015 75,859' 80,674' 80,782 83,628 97,850 98,267 30 FHLBB 19,897 29,617 31,682 32,177 31,941 35,357 37,245 37,510 39,630 44,994 46,408 31 Other 17,432 31,099 35,134 37,179 38,074 40,502' 43,429' 43,272 43,998 52,856 51,859 32 Other 4,263 5,324 7,118 6,639 7,051' 8,052' 7,374' 7,679 8,334 7,843 8,262 33 Net worth 11,098 15,034 16,589 16,886 16,843' 17,661' 17,886' 18,206 18,893 19,472 21,184 Savings banks 34 Assets 236,866 259,643 264,507 249,927 252,875 253,453 255,510 257,127 258,537 261,361 254,319 254,165 Loans 35 Mortgage 118,323 138,494 143,235 138,148 139,844 141,316 143,626 145,398 146,501 147,597 144,998 145,426 36 Other 35,167 33,871 35,927 32,399 32,941 32,799 32,879 3333,,223344 3333,,779911 3311,,226699 3322,,445500 32.369 Securities 37 U.S. government 14,209 13,510 12,490 11,597 11,563 11,353 11,182 1100,,889966 1100,,880044 1111,,445577 1100,,448855 10.315 38 Mortgage-backed securities 25,836 3322,,777722 31,861 29,735 30,064 3300,,000066 29,190 2299,,889933 2299,,337722 2299,,775511 2299,,225588 29.085 39 State and local government 2,185 2,003 1,933 1,849 1,840 1,901 1,878 1,872 1,887 1,848 1,835 1,829 40 Corporate and other . 20,459 18,772 18,298 17,492 17,527 17,301 17,234 16,886 16,773 17,822 15,964 15,812 41 Cash 6,894 5,864 5,383 4,831 5,186 4,950 5,463 4,825 5,093 7,050 5,532 5,465 42 Other assets 13,793 14,357 15,380 13,876 13,910 13,827 14,058 14,123 14,316 14,567 13,797 13,864 43 Liabilities 236,866 259,643 264,507 249,927 252,875 253,453 255,510 257,127 258,537 261,361 254,319 254,165 44 Deposits 192,194 201,497 205,692 194,018 195,537 195,907 197,665 197,925 199,092 202,058 195,452 195,308 45 Regular4 186,345 196,037 200,098 188,571 189,993 190,716 192,228 192,663 194,095 1%,407 190,378 190,422 46 Ordinary savings .. 37,717 41,959 42,403 40,179 40,124 39,738 39,618 39,375 39,482 39,750 38,221 38,049 47 Time 100,809 112,429 117,297 110,738 112,272 114,255 116,387 117,712 119,026 121,148 118,612 119,109 48 Other 5,849 5,460 5,594 5,447 5,544 5,191 5,427 5,262 4,997 5,651 5,074 4,886 49 Other liabilities 25,274 35,720 35,836 34,038 34,686 3344,,777766 3355,,000011 3355,,999977 3366,,001122 3366,,116699 3333,,778822 33.642 50 General reserve accounts 18,105 20,633 21,179 19,875 20,069 20,018 20,151 20,324 20,462 20,337 20,138 20,336 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.37—Continued 1988 1989 AAccccoouunntt 11998866 11998877 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Credit unions5 51 Total assets/liabilities and capital 147,726 172,456 172,345 173,276 173,044 174,649 174,722 174,406 174,593 175,027 176,270 52 Federal 95,483 112,595 112,573 113,068 112,686 113,383 113,474 113,717 114,566 114,909 115,543 53 State 52,243 59,855 59,772 60,208 60,358 61,266 61,248 61,135 60,027 60,118 60,727 54 Loans outstanding.. 86,137 n.a. 105,704 105,800 107,065 108,974 110,939 111,624 112,452 113,191 114,012 113,880 55 Federal 55,304 68,213 68,658 69,626 70,944 72,200 72,551 73,100 73,766 74,083 73,917 56 State 30,833 37,491 37,142 37,439 38,030 38,739 39,073 39,352 39,425 39,927 39,963 57 Savings 134,327 157,764 158,186 159,314 158,731 157,944 160,174 159,021 159,010 159,106 161,073 58 Federal 87,954 103,129 103,347 104,256 103,657 103,698 104,184 103,223 104,431 104,629 105,262 59 State 46,373 54,635 54,839 55,058 55,074 54,246 55,990 55,798 54,579 54,477 55,811 Life insurance companies 60 Assets 937,551 1,044,459 1,094,827 1,105,546 1,113,547 1,121,337 1,131,179 1,139,490 1,144,854'" 1,157,140 1,167,184 Securities 61 Government 84,640 84,426 86,711 87,160 88,218 88,362 87,588 88,883 89,510 88,167 88,747 62 United States6.. 59,033 57,078 58,988 59,351 60,244 60,407 59,874 60,621 61,108 60,685 61,042 63 State and local . 11,659 10,681 11,016 11,114 11,102 11,190 11,054 11,069 11,189 11,126 11,036 64 Foreign 13,948 16,667 16,707 16,695 16,872 16,765 16,660 17,193 17,213 16,356 16,669 65 Business 492,807 569,199 606,445 614,052 618,742 624,917 630,086 633,390 638,350 644,894 655,149 n.a. 66 Bonds 401,943 472,684 503,728 509,105 514,926 520,796 525,336 527,419 532,197 538,053 545,970 67 Stocks 90,864 96,515 102,717 104,947 103,816 104,121 104,750 105,971 106,153 106,841 109,179 68 Mortgages 193,842 203,545 219,012 220,870 221,990 233,438 225,627 227,342 229,234 232,639 233,334 69 Real estate 31,615 34,172 35,484 35,545 35,737 35,920 35,892 36,892 36,673 37,972 38,112 70 Policy loans 54,055 53,626 53,013 53,107 53,142 53,194 53,149 53,157 53,148 53,020 53,210 71 Other assets 80,592 89,586 94,162 94,812 95,718 95,505 98,837 99,826 94,116 95,518 98,632 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 • July 1989 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1988 1989 1986 1987 1988 Jan. Feb. Apr. U.S. budget1 1 Receipts, total 769,091 854,143 908,953 64,408 93,795 89,369 61,978 68,276 128,952 2 On-budget 568,862 640,741 667,462 47,023 74,682 65,250 38,473 44,677 99,679 3 Off-budget 200,228 213,402 241,491 17,385 19,114 24,119 23,505 23,598 29,273 4 Outlays, total 990,258 1,003,830 1,064,044 93,541 105,237' 86.563 89,850 104,055 87,506 5 On-budget 806,760 809,998 861,352 75,453' 91,606' 68,999 71,324 85,191 70,924 6 Off-budget 183,498 193,832 202,691 17,999 13,632 17.564 18,526 18,864 16,582 7 Surplus, or deficit (-), total -221,167 -149,687 -155,090 -29,134' -11,442' 2,806 -27,871 -35,779 41,446 8 On-budget -237,898 -169,257 -193,890 -28,159' -16,924' -3,749 -32,851 -40,513 28,755 9 OfF-budget 16,731 19,570 38,800 -614 5,482 6,555 4,979 4,735 12,691 Source of financing (total) 10 Borrowing from the public 236,187 150,070 162,062 31,520 12,036 7,359 17,190 13,405 -1,291 11 Operating cash (decrease, or increase -14,324 -5,052 -7,963 9,218 -12,268 -8,135 17,009 10,154 -38,788 12 Othe$".'.1'.'.'. 1'.'.'.' 11'.'.'.1'. 1'.''. -696 4,669 991 -11,604' 11,674' -2,030 -6,328 12,221 -1,367 MEMO 13 Treasury operating balance (level, end of 31,384 36,436 44,398 21,432 33,700 41,835 24,826 14,672 53,460 period) 7,514 9,120 13,024 5,198 8,657 11,766 6,298 4,462 22,952 14 Federal Reserve Banks 23,870 27,316 31,375 16,234 25,044 30,069 18,528 10,211 30,508 15 Tax and loan accounts 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetary 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 FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1987 1988 1989 111999888777 111999888888 HI H2 HI H2 Feb. Mar. Apr. RECEIPTS 1 All sources 854,143 908,954 447,282 421,712 476,115 449,821 61,978 68,276 128,952 2 Individual income taxes, net 392,557 401,181 205,157 192,575 207,659 200,299 23,427 17,769 68,533 3 Withheld 322,463 341,435 156,760 170,203 169,300 179,600 26,021 34,088 23,649 4 Presidential Election Campaign Fund 33 33 30 4 28 4 3 7 6 5 Nonwithheld 142,957 132,199 112,421 31,223 101,614 29,880 930 4,585 61,704 6 Refunds 72,896 72,487 64,052 8,853 63,283 9,187 3,528 20,912 16,826 Corporation income taxes 7 Gross receipts 102,859 109,683 52,396 52,821 58,002 56,409 2,277 14,481 16,412 8 Refunds 18,933 15,487 10,881 7,119 8,706 7,384 1,370 1,980 1,723 9 Social insurance taxes and contributions, net 303,318 334,335 163,519 143,755 181,058 157,603 32,086 30,268 39,496 10 Employment taxes and contributions 273,028 305,093 146,696 130,388 164,412 144,983 29,854 2299,,773366 3366,,777755 11 Self-employment taxes and contributions 13,987 17,691 12,020 1,889 14,839 3,032 1,439 1,181 8,900 12 Unemployment insurance 25,575 24,584 14,514 10,977 14,363 10,359 1,882 118 2,375 13 Other net receipts 4,715 4,659 2,310 2,390 2,284 2,262 349 414 346 14 Excise taxes 32,457 35,540 15,845 17,680 16,440 19,434 2,303 3,228 2,616 15 Customs deposits 15,085 16,198 7,494 7,993 7,913 8,535 1,347 1,476 1,263 16 Estate and gift taxes 7,493 7,594 3,818 3,610 3,863 4,054 498 723 1,146 17 Miscellaneous receipts3 19,307 19,909 10,299 10,399 9,950 10,873 1,411 2,312 1,209 OUTLAYS 18 All types 1,003,830 1,064,044 503,267 532,839 513,210 553,230' 89,850 104,055 87,506 19 National defense 281,999 290,361' 142,886 146,995 143,080 150,496 23,167 29,719 21,247 20 International affairs 11,649 10,471' 4,374 4,487 7,150 2,636 274 1,762 1,366 21 General science, space, and technology .... 9,216 10,841' 4,324 5,469 5,361 5,852 864 1,200 929 22 Energy 4,115 2,297' 2,335 1,468 555 1,966 358 573 280 23 Natural resources and environment 13,363 14,606' 6,175 7,590 6,776 8,330 1,056 1,268 951 24 Agriculture 26,606 17,210 11,824 14,640 7,872 7,725 2,175 965 2,364 25 Commerce and housing credit 6,182' 18,808' 4,893 3,852 5,951 20,274 -413 841 460 26 Transportation 26,222' 27,272' 12,113 14,096 12,700 14,922 1,810 2,109 1,746 27 Community and regional development 5,051 5,294' 3,108 2,075 2,765 2,690 317 312 241 28 Education, training, employment, and social services 29,724 31,938' 14,182 15,592 15,451 16,152 3,114 2,967 22,,885599 29 Health 39,968 44,490' 20,318 20,750 22,643 23,360 3,523 3,881 4,028 30 Social security and medicare 282,472 297,828 142,864 158,469 135,322 149,017 25,402 27,778 25,877 31 Income security 123,250' 129,332' 62,248 61,201 65,555 64,978 12,234 14,458 11,612 32 Veterans benefits and services 26,782 29,428' 12,264 14,956 13,241 15,797 2,287 3,766 1,251 33 Administration of justice 7,548 9,223' 3,626 4,291 4,761 4,778 677 806 949 34 General government 5,948' 7,658' 3,344 3,560 4,337 5,137 558 743 156 35 General-purpose fiscal assistance 1,621' 1,816' 337 1,175 448 0 0 0 0 3 3 6 7 U N n et d i i s n t t r e ib re u s t t e 6 d offsetting receipts i ' - 1 3 3 6 8 , , 4 5 5 7 5 0 - 1 3 5 6 1 , , 9 7 6 4 7 8 ' ' -1 7 9 0 , , 1 1 0 1 2 0 -1 7 7 1 , , 6 9 8 3 4 3 -1 7 7 6 , , 7 0 6 9 6 8 -1 7 8 8 , , 7 3 7 1 1 7 - 1 2 5 , , 7 2 9 4 2 1 - 1 3 3 , , 0 9 2 3 5 1 - 1 2 4 ,8 ,0 8 7 7 6 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 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 DomesticN onfinancial Statistics • July 1989 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1986 1987 1988 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 2,218.9 2,250.7 2,313.1 2,354.3 2,435.2 2,493.2 2,555.1 2,614.6 2,707.3 2 Public debt securities 2,214.8 2,246.7 2,309.3 2,350.3 2,431.7 2,487.6 2,547.7 2,602.2r 2,684.4 3 Held by public 1,811.7 1,839.3 1,871.1 1,893.1 1,954.1 1,996.7 2,013.4 2,051.7 2,095.2 4 Held by agencies 403.1 407.5 438.1 457.2 477.6 490.8 534.2 550.4 589.2 5 Agency securities 4.0 4.0 3.8 4.0 3.5 5.6 7.4 12.4 22.9 6 Held by public 3.0 2.9 2.8 3.0 2.7 5.1 7.0 12.2 22.6 7 Held by agencies 1.1 1.1 1.0 1.0 .8 .6 .5 .2 .3 8 Debt subject to statutory limit 2,200.5 2,232.4 2,295.0 2,336.0 2,417.4 2,472.6 2,532.2 2,586.9 2,669.1 9 Public debt securities 2,199.3 2,231.1 2,293.7 2,334.7 2,416.3 2,472.1 2,532.1 2,586.7 2,668.9 10 Other debt1 1.3 1.3 1.3 1.3 1.1 .5 .1 .1 .2 11 MEMO: Statutory debt limit 2,300.0 2,300.0 2,320.0 2,800.0 2,800.0 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 1988 TTyyppee aanndd hhoollddeerr 11998855 11998866 11998877 11998888 Q1 Q2 Q3 Q4 1 Total gross public debt 1,945.9 2,214.8 2,431.7 2,684.4 2,487.6 2,547.7 2,602.2r 2,684.4 By type 2 Interest-bearing debt 1,943.4 2,212.0 2,428.9 2,663.1 2,484.9 2,545.0 2,599.9 2,663.1 3 Marketable 1,437.7 1,619.0 1,724.7 1,821.3 1,758.7 1,769.9 1,802.9 1,821.3 4 Bills 399.9 426.7 389.5 414.0 392.6 382.3 398.5 414.0 5 812.5 927.5 1,037.9 1,083.6 1,059.9 1,072.7 1,089.6 1,083.6 6 Bonds 211.1 249.8 282.5 308.9 291.3 299.9 299.9 308.9 7 Nonmarketable1 505.7 593.1 704.2 841.8 726.2 775.1 797.0 841.8 8 State and local government series 87.5 110.5 139.3 151.5 142.9 146.9 147.6 151.5 9 Foreign issues 7.5 4.7 4.0 6.6 6.1 5.7 6.3 6.6 10 Government 7.5 4.7 4.0 6.6 6.1 5.7 6.3 6.6 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes. 78.1 90.6 99.2 107.6 102.3 104.5 106.2 107.6 13 Government account series 332.2 386.9 461.3 575.6 474.4 517.5 536.5 575.6 14 Non-interest-bearing debt 2.5 2.8 2.8 21.3 2.6 2.7 2.3' 21.3 By holder4 15 U.S. government agencies and trust funds 348.9 403.1 477.6 589.2 490.8 534.2 550.4 589.2 16 181.3 211.3 222.6 238.4 217.5 227.6 229.2 238.4 17 Private investors 1,417.2 1,602.0 1,745.2 1,852.8 1,778.2 1,784.9 1,819.0 1,852.8 18 198.2 203.5 201.2 195.0 201.0 202.5 203.0 195.0 19 Money market funds 25.1 28.0 14.3 18.8 14.9 13.1 10.8 18.8 20 Insurance companies 78.5 105.6 120.6 n.a. 125.5 132.2 135.0 n.a. 21 Other companies 59.0 68.8 84.6 86.1 83.0 86.5 86.0 86.1 22 State and local Treasurys 226.7 262.8 282.6 n.a. 285.8 286.3 287.0 n.a. Individuals 23 Savings bonds 79.8 92.3 101.1 109.6 104.0 106.2 107.8 109.6 24 Other securities 75.0 70.5 72.3 77.8 12.T 73.9 76.7 77.8 25 Foreign and international 212.5 251.6 287.3 349.3 321.0 333.8 334.3 349.3 26 Other miscellaneous investors 462.4 518.9 581.2 n.a. 573.2 552.6 583.1 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 1989 1989 IItteemm 11998866 11998877 11998888 Feb/ Mar.r Apr. Mar. 22 Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 Immediate delivery2 1 U.S. Treasury securities 95,444 110,050 101,623 121,460 101,107 107,794 113,522' 96,582' 124,487 92,906 118,385 98,310 By maturity 2 Bills 34,247 37,924 29,387 33,886 30,718 29,307 31,435r 26,840' 39,332 28,550 30,349 26,303 3 Other within 1 year 2,115 3,271 3,426 3,641 3,953 3,172 4,284 3,831' 4,264 2,543 4,049 2,702 4 1-5 years 24,667 27,918 27,777 38,121 29,531 31,389 33,744 36,008' 33,888 21,778 34,905 32,681 5 5-10 years 20,455 24,014 24,939 27,946 24,284 29,661 29,727r 18,935' 30,785 28,148 33,069 24,288 6 Over 10 years 13,961 16,923 16,093 17,867 12,621 14,265 14,332 10,967' 16,218 11,887 16,011 12,337 By type of customer 7 U.S. government securities dealers 3,669 2,936 2,761 3,859 3,561 3,370 3,389 2,972 7,582 3,081 3,353 2,690 8 U.S. government securities brokers 49,558 61,539 59,844 70,267 59,914 64,438 68,809 56,590' 70,621 55,517 70,570 59,023 9 All others3 42,217 45,575 39,019 47,335 37,632 39,987 41,323'' 37,019' 46,284 34,308 44,462 36,596 10 Federal agency securities 16,747 18,084 15,903 17,209 15,417 17,216 12,130 14,279' 15,549 17,602 19,973 15,134 11 Certificates of deposit 4,355 4,112 3,369 3,702 3,203 2,946 3,345 3,215 2,853 3,357 2,979 2,798 12 Bankers acceptances 3,272 2,965 2,316 2,368 2,112 2,562 1,942 2,213 2,351 2,521 2,489 2,490 13 Commercial paper 16,660 17,135 22,927 32,131 30,481 30,858 29,493 31,856 31,759 29,365 30,975 28,918 Futures contracts 14 Treasury bills 3,311 3,233 2,627 3,947 3,139 2,788 4,459r 1,627 3,494 1,791 3,235 2,269 15 Treasury coupons 7,175 8,963 9,695 10,658 9,087 8,662 11,109' 6,584 9,707 7,258 10,004 7,111 16 Federal agency securities 16 5 1 0 0 0 0 0 0 0 0 0 Forward transactions 17 U.S. Treasury securities 1,876 2,029 2,095 3,054 1,819 2,019 2,189r 1,606 2,751 1,270 2,027 1,954 18 Federal agency securities 7,830 9,290 8,008 7,656 8,322 7,865 10,412 6,062 6,254 10,110 8,992 5,675 1. Transactions are market purchases and sales of securities as reported to the securities, nondealer departments of commercial banks, foreign banking agencies, Federal Reserve Bank of New York by the U.S. government securities dealers on and the Federal Reserve System. its published list of primary dealers. 4. Futures contracts are standardized agreements arranged on an organized Averages for transactions are based on the number of trading days in the period. exchange in which parties commit to purchase or sell securities for delivery at a The figures exclude allotments of, and exchanges for, new U.S. Treasury future date. securities, redemptions of called or matured securities, purchases or sales of 5. Forward transactions are agreements arranged in the over-the-counter securities under repurchase agreement, reverse repurchase (resale), or similar market in which securities are purchased (sold) for delivery after 5 business days contracts. from the date of the transaction for Treasury securities (Treasury bills, notes, and 2. Data for immediate transactions do not include forward transactions. bonds) or after 30 days for mortgage-backed agency issues. 3. Includes, among others, all other dealers and brokers in commodities and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • July 1989 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1989 1989 IItteemm 11998866 11998877 11998888 Feb. Mar.' Apr. Mar. 29 Apr. 5 Apr. 12 Apr. 19 Apr. 26 Positions Net immediate-* 1 U.S. Treasury securities 12,912 -6,216 -22,765 -31,876' -32,313 -22,532 -34,543' -23,658 -23,295 -20,807 -24,429 2 Bills 12,761 4,317 2,238 -3,914r -2,056 1,532 -3,045' -459 1,734 2,239 1,730 3 Other within 1 year 3,705 1,557 -2,236 -3,545 -4,240 -955 -3,613' -1,671 -723 -428 -1,524 4 1-5 years 9,146 649 -3,020 -8,696' -7,631 -5,564 -9,675' -3,063 -4,556 -6,518 -7,958 5 5-10 years -9,505 -6,564 -9,663 -8,309' -8,724 -9,026 -9,440 -8,924 -10,824 -8,386 -8,767 6 Over 10 years -3,197 -6,174 -10,084 -7,412' -9,661 -8,519 -8,771 -9,542 -8,926 -7,713 -7,910 7 Federal agency securities 32,984 31,911 28,230 30,007' 30,770 28,591 31,115' 29,725 28,740 29,159 27,949 8 Certificates of deposit 10,485 8,188 7,300 6,312' 7,121 6,165 7,141' 6,960 6,255 6,047 5,879 y Bankers acceptances 5,526 3,660 2,486 2,152 1,929 2,531 1,786 2,187 2,660 2,254 2,724 10 Commercial paper 88,,008899 77,,449966 66,,115522 66,,447722 66,,773344 99,,112277 66,,449966'' 77,,008877 77,,779911 99,,551166 1100,,337766 Futures positions 1111 Treasury bills -18,059 -3,373 -2,210 4,512' 1,829 -5,126 -677 -3,130 -5,013 -5,338 -5,483 12 Treasury coupons 3,473 5,988 6,224 2,895 2,925 895 2,665' 1,520 1,212 344 963 13 Federal agency securities -153 -95 0 0 0 0 0 0 0 0 0 Forward positions 1144 U.S. Treasury securities -2,144 -1,211 346 872 -641 -1,295 -1,250' -2,509 -1,907 -1,420 -289 15 Federal agency securities -11,840 -18,817 -16,348 -14,873' -15,662 -15,320 -15,444 -15,051 -15,191 -16,060 -14,658 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 98,913 126,709 136,327 160,928 160,212 143,132 162,507 159,894 160,696 159,680 156,217 1/ Term 110088,,660077 114488,,228888 117777,,447777 221155,,228833 226,855 220022,,667733 226,794 221100,,882255 222244,,558877 222255,,334411 223344,,226699 Repurchase agreements 1188 Overnight and continuing 141,823 170,763 172,695 205,530 204,454 187,255 199,611 201,268 209,067 211,863 207,329 19 Term 102,397 121,270 137,056 155,689 163,104 153,210 167,402 161,707 168,979 163,113 183,722 1. Data for dealer positions and sources of financing are obtained from reports ties involved are not available for trading purposes. Immediate positions include submitted to the Federal Reserve Bank of New York by the U.S. Treasury reverses to maturity, which are securities that were sold after having been securities dealers on its published list of primary dealers. obtained under reverse repurchase agreements that mature on the same day as the Data for positions are averages of daily figures, in terms of par value, based on securities. Data for immediate positions do not include forward positions. the number of trading days in the period. Positions are net amounts and are shown 3. Figures cover financing involving U.S. Treasury and federal agency securion a commitment basis. Data for financing are in terms of actual amounts ties, negotiable CDs, bankers acceptances, and commercial paper. borrowed or lent and are based on Wednesday figures. 4. Includes all reverse repurchase agreements, including those that have been 2. Immediate positions are net amounts (in terms of par values) of securities arranged to make delivery on short sales and those for which the securities owned by nonbank dealer firms and dealer departments of commercial banks on obtained have been used as collateral on borrowings, that is, matched agreements. a commitment, that is, trade-date basis, including any such securities that have 5. Includes both repurchase agreements undertaken to finance positions and been sold under agreements to repurchase (RPs). The maturities of some "matched book" repurchase agreements. repurchase agreements are sufficiently long, however, to suggest that the securi- NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially estimated. 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 1989 AAggeennccyy 11998844 11998855 11998866 11998877 Nov. Dec. Jan. Feb. Mar. 1 Federal and federally sponsored agencies 271,220 293,905 307,361 341,386 370,639 381,498 385,959 390,803 397,318 2 Federal agencies 35,145 36,390 36,958 37,981 35,209 35,668 35,727 35,768 36,348 3 Defense Department' 142 71 33 13 8 8 8 8 8 4 Export-Import Bank2'3 15,882 15,678 14,211 11,978 10,964 11,033 11,033 11,033 11,007 5 Federal Housing Administration 133 115 138 183 139 150 143 165 172 6 Government National Mortgage Association participation certificates5 2,165 2,165 2,165 1,615 0 0 0 00 0 7 Postal Service 1,337 1,940 3,104 6,103 5,842 6,142 6,142 6,142 6,742 8 Tennessee Valley Authority 15,435 16,347 17,222 18,089 18,256 18,335 18,401 18,420 18,419 9 United States Railway Association6 51 74 85 0 0 0 0 0 0 10 Federally sponsored agencies7 237,012 257,515 270,553 303,405 335,430 345,830 350,232 355,035 360,970 11 Federal Home Loan Banks 65,085 74,447 88,752 115,725 130,630 135,834 139,804 144,343 149,950 12 Federal Home Loan Mortgage Corporation 10,270 11,926 13,589 17,645 19,500 22,797 22,874 21,320 23,392 N Federal National Mortgage Association 83,720 93,896 93,563 97,057 105,337 105,459 104,843 105,201 104,666 14 Farm Credit Banks8 72,192 68,851 62,478 55,275 53,420 53,127 52,319 52,441 52,069 15 Student Loan Marketing Association9 5,745 8,395 12,171 16,503 21,403 22,073 23,852 25,190 23,753 16 Financing Corporation n.a. n.a. n.a. 1,200 4,450 5,850 5,850 5,850 6,450 17 Farm Credit Financial Assistance Corporation1 n.a. n.a. n.a. n.a. 690 690 690 690 690 MEMO 18 Federal Financing Bank debt 145,217 153,373 157,510 152,417 143,321 142,850 142,447 142,123 141,864 Lending to federal and federally sponsored agencies 19 Export-Import Bank 15,852 1155,,667700 1144,,220055 1111,,997722 1100,,995588 1111,,002277 1111,,002277 1111,,002277 1111,,000011 20 Postal Service 1,087 1,690 2,854 5,853 5,592 5,892 5,892 5,892 6,492 21 Student Loan Marketing Association 5,000 5,000 4,970 4,940 4,910 4,910 4,910 4,910 4,910 22 Tennessee Valley Authority 13,710 14,622 15,797 16,709 16,876 16,955 17,021 17,040 17,039 23 United States Railway Association6 51 74 85 0 0 0 0 0 0 Other Lending13 24 Farmers Home Administration 58,971 64,234 65,374 59,674 58,496 58,496 58,496 5588,,449966 5577,,884411 75 Rural Electrification Administration 20,693 20,654 21,680 21,191 19,220 19,246 19,225 19,245 19,195 26 29,853 31,429 32,545 32,078 27,269 26,324 25,876 25,513 25,386 1. Consists of mortgages assumed by the Defense Department between 1957 9. Before late 1981, the Association obtained financing through the Federal and 1963 under family housing and homeowners assistance programs. Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. shown on line 21. 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. 10. The Financing Corporation, established in August 1987 to recapitalize the 4. Consists of debentures issued in payment of Federal Housing Administration Federal Savings and Loan Insurance Corporation, undertook its first borrowing in insurance claims. Once issued, these securities may be sold privately on the October 1987. securities market. 11. The Farm Credit Financial Assistance Corporation (established in January 5. Certificates of participation issued before fiscal 1969 by the Government 1988 to provide assistance to the Farm Credit System) undertook its first National Mortgage Association acting as trustee for the Farmers Home Admin- borrowing in July 1988. istration; Department of Health, Education, and Welfare; Department of Housing 12. The FFB, which began operations in 1974, is authorized to purchase or sell and Urban Development; Small Business Administration; and the Veterans obligations issued, sold, or guaranteed by other federal agencies. Since FFB Administration. incurs debt solely for the purpose of lending to other agencies, its debt is not 6. Off-budget. included in the main portion of the table in order to avoid double counting. 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- 13. Includes FFB purchases of agency assets and guaranteed loans; the latter tures. Some data are estimated. contain loans guaranteed by numerous agencies with the guarantees of any 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, particular agency being generally small. The Farmers Home Administration item shown in line 17. consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • July 1989 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1988 1989 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11998866 11998877 11998888 Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. 1 All issues, new and refunding1 147,011 102,407 108,078 9,669 10,455 8,551 11,268 6,640 8,054 8,626 6,820 Type of issue 2 General obligation 46,346 30,589 29,662 2,370 2,058 2,368 2,491 1,784 3,955 2,185 2,277 i Revenue 100,664 71,818 78,417 7,299 8,397 6,183 8,777 4,856 4,099 6,441 4,543 Type of issuer 4 State 14,474 10,102 9,254 1,206 734 525 1,011 280 1,896 256 1,407 Special district and statutory authority2 89,997 65,460 69,447 6,407 7,283 5,550 7,690 4,882 3,832 5,962 3,774 6 Municipalities, counties, and townships 42,541 26,845 29,377 2,056 2,438 2,476 2,567 1,478 2,326 2,408 1,639 7 Issues for new capital, total 83,492 56,789 75,064 7,076 6,965 5,830 8,738 4,141 5,222 6,486 6,029 Use of proceeds 8 Education 12,307 9,524 13,722 1,351 512 827 2,564 827 826 1,055 1,303 9 Transportation 7,246 3,677 6,974 732 559 237 636 344 382 445 885 10 Utilities and conservation 14,594 7,912 7,929 694 1,238 1,055 463 1,335 847 901 732 11 Social welfare 11,353 11,106 17,824 2,358 2,478 1,991 2,072 509 743 1,329 1,134 12 Industrial aid 6,190 7,474 6,276 280 393 294 1,010 293 250 253 290 13 Other purposes 31,802 18,020 22,339 1,661 1,785 1,426 1,993 834 2,174 2,503 1,685 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 1989 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998866 11998877 11998888 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 All issues1 423,726 392,156 265,618 19,739 23,933 21,818 24,531 12,389r 17,369' 14,162' 25,289 2 Bonds2 355,293 325,648 223,162 16,404 20,928 19,031 21,096 10,338' 14,208r 11,628' 24,368 Type of offering 3 Public, domestic 231,936 209,279 199,984 15,065 18,240 17,519 16,798 10,203' 11,348r 9,434' 22,500 4 Private placement, domestic3 80,760 92,070 129,488r n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5. Sold abroad 42,596 24,299 23,178 1,339 2,688 1,512 4,298 135 2,860 1,994' 2,000 Industry group 6 Manufacturing 91,548 61,666 40,874 3,476 3,750 3,552 2,890 1,485 1,660 1,319' 7,364 7 Commercial and miscellaneous 40,124 49,327 18,640 2,226 1,035 764 3,260 748 2,047 1,047' 875 8 Transportation 9,971 11,974 3,771 0 150 605 45 0 0 102 0 9 Public utility 31,426 23,004 13,775 298 856 1,346 672 264r 635' 640' 153 10 Communication 16,659 7,340 4,044 29 1,064 100 289 158 0 230 63 11 Real estate and financial 165,564 172,343 142,055 10,374 14,072 12,664 13,940 7,683 9,867' 8,290' 15,909 12 Stocks3 68,433 66,508 42,456 3,335 3,005 2,787 3,435 2,051 3,161 2,534 921 Type 13 Preferred 11,514 10,123 6,544 498 385 865 478 495 275 975 310 14 Common 50,316 43,225 35,911 2,837 2,620 1,922 2,957 1,556 2,886 1,559 611 15 Private placement3 6,603 13,157 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 15,027 13,880 6,115 538 244 288 430 425 33 832 127 17 Commercial and miscellaneous 10,617 12,888 4,766 347 525 222 52 89 32 270 336 18 Transportation 2,427 2,439 845 72 5 25 20 0 220 0 53 19 Public utility 4,020 4,322 1,581 135 215 282 70 20 1,960 11 112 20 Communication 1,825 1,458 448 3 23 0 20 59 5 19 0 21 Real estate and financial 34,517 31,521 28,701 2,240 1,993 1,970 2,843 1,459 911 1,402 297 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., the Board of Governors of the bonds. Stock data include ownership securities issued by limited partnerships. Federal Reserve System, and before 1989, the U.S. Securities and Exchange Commission. 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 1989 IItteemm 11998877 11998888 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. INVESTMENT COMPANIES1 1 Sales of own shares2 381,260 271,237 20,595 19,872 20,494 20,327 25,780 29,014 22,741 24,933 2 Redemptions of own shares3 314,252 267,451 22,837 21,330 19,362 20,599 25,976 24,494 22,252 25,788 3 Net sales 67,008 3,786 -2,242 -1,458 1,132 -272 -1% 4,520 489 -855 4 Assets4 453,842 472,297 465,822 474,662 481,571 470,660 472,297 487,204 482,697r 483,967 5 Cash position5 38,006 45,090 45,229 46,706 45,976 43,488 45,090 49,661 47,908 46,501 6 Other 415,836 427,207 420,595 427,956 435,595 427,172 427,207 437,543 434,789r 436,566 1. Data on sales and redemptions exclude money market mutual funds but 4. Market value at end of period, less current liabilities. include limited maturity municipal bond funds. Data on asset positions exclude 5. Also includes all U.S. government securities and other short-term debt both money market mutual funds and limited maturity municipal bond funds. securities. 2. Includes reinvestment of investment income dividends. Excludes reinvest- NOTE. Investment Company Institute data based on reports of members, which ment of capital gains distributions and share issue of conversions from one fund comprise substantially all open-end investment companies registered with the to another in the same group. Securities and Exchange Commission. Data reflect newly formed companies after 3. Excludes share redemption resulting from conversions from one fund to their initial offering of securities. another in the same group. SOURCE. Survey of Current Business (Department of Commerce). 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1987 1988 1989 AAccccoouunntt 11998866 11998877 11998888 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Corporate profits with inventory valuation and capital consumption adjustment 298.9 310.4 328.1 305.2 322.0 316.1 316.2 326.5 330.0 340.9 319.3 2 Profits before tax 236.4 276.7 306.4 273.7 289.4 281.9 286.2 305.9 313.9 320.6 319.9 3 Profits tax liability 106.6 133.8 142.6 132.6 140.0 136.2 136.9 143.2 144.8 146.1 148.3 4 Profits after tax 129.8 142.9 163.8 141.1 149.5 145.7 149.4 162.7 169.1 174.5 171.6 5 Dividends 88.2 95.5 104.5 94.0 97.0 99.3 101.3 103.1 105.7 108.0 111.1 6 Undistributed profits 41.6 47.4 59.2 47.0 52.4 46.4 48.1 59.6 63.4 66.4 60.5 7 Inventory valuation 8.3 -18.0 -23.8 -20.0 -19.5 -18.2 -19.4 -27.4 -29.3 -19.2 -33.9 8 Capital consumption adjustment 54.2 51.7 45.6 51.5 52.1 52.4 49.4 48.0 45.4 39.6 33.3 •Trade and services are no longer being reported separately. They are included in Commercial and other, line 10. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1987 1988 1989 IInndduussttrryy 11998877 11998888 1199889911 Q3 Q4 Ql Q2 Q3 Q4 Ql Q21 1 Total nonfarm business 389.67 429.67 468.78 398.04 417.25 422.75 429.01 440.42 445.73 465.51 471.35 Manufacturing 2 Durable goods industries 71.01 78.12 82.65 73.24 76.40 80.13 79.00 80.59 78.97 83.12 81.54 3 Nondurable goods industries 74.88 87.58 96.01 77.23 86.05 81.00 83.82 85.78 90.00 96.77 95.79 Nonmanufacturing 4 Mining 11.39 12.67 11.79 11.06 11.74 12.26 12.87 12.74 11.97 11.89 12.16 Transportation 5 Railroad 5.92 7.06 25.17 6.79 7.08 7.29 6.78 7.07 8.07 8.17 8.05 6 Air 6.53 7.25 8.04 6.62 7.03 7.72 7.44 9.31 6.84 10.15 10.54 7 Other 6.40 7.04 9.95 7.05 6.48 7.48 6.58 7.06 7.20 7.11 7.27 Public utilities 8 Electric 31.63 31.90 33.09 32.93 33.32 31.59 32.55 33.79 33.54 32.70 34.38 9 Gas and other 13.25 14.60 16.47 12.66 12.84 14.56 13.81 14.26 15.25 16.92 16.20 10 Commercial and other 168.65 183.44 203.60 170.46 176.29 180.72 186.15 189.82 193.87 198.70 205.44 1. Anticipated by business. insurance; personal and business services; and communication. 2. "Other" consists of construction; wholesale and retail trade; finance and 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 • July 1989 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1986 1987 AAccccoouunntt 11998833 11998844 11998855 Q2 Q3 Q4 Qi Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer 83.3 89.9 111.9 123.4 135.3 134.7 131.1 134.7 141.6 141.1 2 Business 113.4 137.8 157.5 166.8 159.7 173.4 181.4 188.1 188.3 207.6 3 Real estate 20.5 23.8 28.0 29.8 31.0 32.6 34.7 36.5 38.0 39.5 4 Total 217.3 251.5 297.4 320.0 326.0 340.6 347.2 359.3 367.9 388.2 Less: 5 Reserves for unearned income 30.3 33.8 39.2 40.7 42.4 41.5 40.4 41.2 42.5 45.3 6 Reserves for losses 3.7 4.2 4.9 5.1 5.4 5.8 5.9 6.2 6.5 6.8 7 Accounts receivable, net 183.2 213.5 253.3 274.2 278.2 293.3 300.9 311.9 318.9 336.1 8 All other 34.4 35.7 45.3 49.5 60.0 58.6 59.0 57.7 64.5 58.2 9 Total assets 217.6 249.2 298.6 323.7 338.2 351.9 359.9 369.6 383.4 394.3 LIABILITIES 10 Bank loans 18.3 20.0 18.0 16.3 16.8 18.6 17.2 17.3 15.9 16.4 11 Commercial paper 60.5 73.1 99.2 108.4 112.8 117.8 119.1 120.4 112244..22 112288..44 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 I. NOTE. Components may not add to totals because of rounding. Data after 1987:4 are cunrently unavailable. It is anticipated that these data will be available later this year. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1 Millions of dollars, seasonally adjusted 1988' 1989 Type 1986' 1987' Oct. Nov. Dec. Jan/ Feb/ 1 Total 156,297 172,060 205,810 231,303 233,699 234,529 235,969 237,378 Retail financing of installment sales 2 Automotive 20,660 26,015 35,782 36,679 36,444 36,548 37,041 37,301 3 Equipment 22,483 23,112 25,170 27,844 28,214 28,298 28,429 28.385 4 Pools of securitized assets2 n.a. n.a. n.a. n.a. n.a. n.a. 724 682 Wholesale 5 Automotive 23,988 23,010 30,507 32,216 32,201 33,300 33,664 34.386 6 Equipment 4,568 5,348 5,600 5,875 5,980 5,983 6,183 6,193 7 All other 6,809 7,033 8,342 8,891 9,037 9,341 9,493 9,569 8 Pools of securitized assets2 n.a. n.a. n.a. n.a. n.a. n.a. 0 0 Leasing 9 Automotive 16,275 19,827 21,952 24,275 24,621 24,673 24,558 24,847 10 Equipment 34,768 38,179 43,335 56,274 56,973 57,455 58,354 58,045 11 Pools of securitized assets2 n.a. n.a. n.a. n.a. n.a. n.a. 721 699 12 Loans on commercial accounts receivable and factored commercial accounts receivable 15,765 15,978 18,078 18,928 19,407 17,796 16,688 17,404 13 All other business credit 10,981 13,557 17,043 20,321 20,822 21,134 20,114 19,867 Net change 14 19,607 15,763 33,750 745 2,396 829 -4 1,409 2,808 Retail financing of installment sales 15 Automotive 5,067 5,355 9,767 -25 -235 105 493 260 394 16 Equipment -363 629 2,058 258 371 84 131 -43 -178 17 Pools of securitized assets2 n.a. n.a. n.a. n.a. n.a. n.a. nn..aa.. --4422 117733 Wholesale 18 Automotive 5,423 -978 7,497 -681 -15 1,099 364 722 -858 19 Equipment -867 780 252 -21 104 3 200 10 -105 20 All other 1,069 224 1,309 111 146 303 152 76 114 21 Pools of securitized assets2 n.a. n.a. n.a. n.a. n.a. n.a. nn..aa.. 00 00 Leasing 22 Automotive 3,896 3,552 2,125 303 346 52 -115 289 736 23 Equipment 2,685 3,411 5,156 720 699 482 -506 -310 1,439 24 Pools of securitized assets2 n.a. n.a. n.a. n.a. n.a. n.a. nn..aa.. --2222 5577 25 Loans on commercial accounts receivable and factored commercial accounts receivable 2,161 213 2,100 -285 480 -1,611 -1,108 716 390 2266 All other business credit 536 2,576 3,486 365 501 312 385 -247 645 1. These data also appear in the Board's G.20 (422) release. For address, see 2. Data on pools of securitized assets are not seasonally adjusted, 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 1989 IItteemm 11998866 11998877 11998888 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 118.1 137.0 150.0 153.8 155.3 150.0 165.2 153.7 159.7R 166.6 2 Amount of loan (thousands of dollars) 86.2 100.5 110.5 114.0 115.6 110.8 121.3 111.8 117.7R 122.4 3 Loan/price ratio (percent) 75.2 75.2 75.5 75.8 76.1 75.6 75.2 73.5 74.4R 78.9 4 Maturity (years) 26.6 27.8 28.0 28.4 28.4 28.3 28.8 28.3 27.T 28.2 5 Fees and charges (percent of loan amount) 2.48 2.26 2.19 1.98 2.28 2.08 1.90 2.14 2.IR 1.69 6 Contract rate (percent per year) 9.82 8.94 8.81 8.77 9.05 9.04 9.20 9.46 9.63R 9.92 Yield (percent per year) 7 FHLBB series3 10.26 9.31 9.18 9.10 9.43 9.39 9.52 9.82 99..9999^^ 10.20 8 HUD series4 10.07 10.17 10.30 10.21 10.37 10.67 10.55 10.75 10.93 10.84 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 9.91 10.16 10.49 10.23 10.63 10.81 10.69 10.88 11.16 10.88 10 GNMA securities6 9.30 9.43 9.83 9.77 9.85 10.07 10.02 10.07 10.38 10.36 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 98,048 95,030 101,329 102,493 102,696 103,013 102,370 101,922 101,991 102,191 12 FHA/VA-insured 29,683 21,660 19,762 19,464 19,467 19,415 19,354 19,275 19,337 19,607 13 Conventional 68,365 73,370 81,567 83,032 83,228 83,598 83,016 82,647 82,654 82,584 Mortgage transactions (during period) 14 Purchases 30,826 20,531 23,110 1,488 1,596 1,726 1,037 905 1,469 1,163 Mortgage commitments1 15 Contracted (during period) 32,987 25,415 23,435 1,740 1,289 1,350 1,087 3,557 1,771 1,118 16 Outstanding (end of period) 3,386 4,886 2,148 3,165 2,740 2,148 2,081 4,520 4,807 4,661 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 13,517 12,802 15,105 15,669 15,419 17,425 18,378 18,473 n.a. n.a. 18 FHA/VA 746 686 620 601 595 590 594 594 n.a. n.a. 19 Conventional 12,771 12,116 14,485 15,068 14,824 16,834 17,785 17,880 n.a. n.a. Mortgage transactions (during period) 20 Purchases 103,474 76,845 44,077 4,037 4,109 5,843 3,586 5,088 n.a. n.a. 21 Sales 100,236 75,082 39,780 3,674 4,231 5,510 3,408 4,385 n.a. n.a. Mortgage commitments9 22 Contracted (during period) 110,855 71,467 66,026 4,406 5,419 10,101 5,206 8,411 n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by in maximum permissable contract rates. major institutional lender groups; compiled by the Federal Home Loan Bank 6. Average net yields to investors on Government National Mortgage Associ- Board in cooperation with the Federal Deposit Insurance Corporation. ation guaranteed, mortgage-backed, fully modified pass-through securities, as- 2. Includes all fees, commissions, discounts, and "points" paid (by the suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying borrower or the seller) to obtain a loan. the prevailing ceiling rate. Monthly figures are averages of Friday figures from the 3. Average effective interest rates on loans closed, assuming prepayment at the Wall Street Journal. end of 10 years. 7. Includes some multifamily and nonprofit hospital loan commitments in 4. Average contract rates on new commitments for conventional first mort- addition to 1- to 4-family loan commitments accepted in FNMA's free market gages; from Department of Housing and Urban Development. auction system, and through the FNMA-GNMA tandem plans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 8. Includes participation as well as whole loans. Administration-insured first mortgages for immediate delivery in the private 9. Includes conventional and government-underwritten loans. FHLMC's mortsecondary market. Based on transactions on first day of subsequent month. Large gage commitments and mortgage transactions include activity under mortgage/ monthly movements in average yields may reflect market adjustments to changes securities swap programs, while the corresponding data for FNMA exclude swap activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • July 1989 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1987 1988 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998866 11998877 11998888 Q4 Q1 Q2 Q3 Q4 1 All holders 2,597,175 2,943,222 3,200,411 2,943,222 2,984,027 3,058,006 3,132,353 3,200,411 2 1- to 4-family 1,698,524 1,925,189 2,115,184 1,925,189 1,951,400 2,012,270 2,067,929 2,115,184 3 Multifamily 247,831 273,899 287,611 273,899 278,144 278,919 281,468 287,611 4 Commercial 555,039 655,266 711,093 665555,,226666 666,461 679,037 695,774 711,093 5 Farm 95,781 88,868 86,523 8888,,886688 88,022 87,780 87,182 86,523 6 Selected financial institutions 1,507,289 1,700,820 1,852,593 1,700,820 1,723,937 1,764,221 1,813,470 1,852,593 7 Commercial banks2 502,534 591,151 665,458 591,151 604,468 628,383 649,135 665,458 8 1- to 4-family 235,814 275,761 313,897 275,761 280,757 295,425 306,118 313,897 9 Multifamily 31,173 33,296 34,715 33,296 33,728 34,184 33,855 34,715 10 Commercial 222,799 267,663 301,236 267,663 275,360 283,598 293,772 301,236 11 Farm 12,748 14,431 15,610 14,431 14,623 15,176 15,390 15,610 12 Savings institutions3 777,312 856,945 908,355 856,945 863,245 872,450 895,230 908,355 13 1- to 4-family 558,412 598,886 648,275 598,886 603,516 615,795 636,794 648,275 14 Multifamily 97,059 106,359 108,319 106,359 107,722 106,367 106,377 108,319 15 Commercial 121,236 115500,,994433 115511,,001166 115500,,994433 115511,,225511 114499,,553366 115511,,330077 115511,,001166 16 Farm 605 17 Life insurance companies 193,842 212,375 233,814 212,375 214,815 220,870 225,627 233,814 18 1- to 4-family 12,827 13,226 15,361 13,226 13,653 14,172 14,917 15,361 19 Multifamily 20,952 22,524 23,681 22,524 22,723 23,021 23,139 23,681 20 Commercial 149,111 166,722 185,592 166,722 168,774 174,086 178,166 185,592 21 Farm 10,952 9,903 9,180 9,903 9,665 9,591 9,405 9,180 22 Finance companies4 33,601 40,349 44,966 40,349 41,409 42,518 43,478 44,966 23 Federal and related agencies 220033,,880000 192,721 198,549 192,721 196,909 199,474 198,027 198,549 24 Government National Mortgage Association 888899 444 67 444 434 42 64 67 25 1- to 4-family 47 25 53 25 25 24 51 53 26 Multifamily 842 419 14 419 409 18 13 14 27 Farmers Home Administration 48,421 43,051 42,018 43,051 43,076 42,767 41,836 42,018 28 1- to 4-family 21,625 18,169 18,347 18,169 18,185 18,248 18,268 18,347 29 Multifamily 7,608 8,044 8,513 8,044 8,115 8,213 8,349 8,513 30 Commercial 8,446 6,603 5,343 6,603 6,640 6,288 5,300 5,343 31 Farm 10,742 10,235 9,815 10,235 10,136 10,018 9,919 9,815 32 Federal Housing and Veterans Administration 5,047 5,574 5,975 5,574 5,660 5,673 5,666 5,975 33 1- to 4-family 2,386 2,557 2,649 2,557 2,608 2,564 2,432 2,649 34 Multifamily 2,661 3,017 3,326 3,017 3,052 3,109 3,234 3,326 35 Federal National Mortgage Association 97,895 96,649 103,013 96,649 99,787 102,368 102,453 103,013 36 1- to 4-family 90,718 89,666 95,833 89,666 92,828 95,404 95,417 95,833 37 Multifamily 7,177 6,983 7,180 6,983 6,959 6,964 7,036 7,180 38 Federal Land Banks 39,984 34,131 32,115 34,131 33,566 33,048 32,566 32,115 39 1- to 4-family 2,353 2,008 1,890 2,008 1,975 1,945 1,917 1,890 40 Farm 37,631 32,123 30,225 32,123 31,591 31,103 30,649 30,225 41 Federal Home Loan Mortgage Corporation 11,564 12,872 15,361 12,872 14,386 15,576 15,442 15,361 42 1- to 4-family 10,010 11,430 13,058 11,430 12,749 13,631 13,322 13,058 43 Multifamily 1,554 1,442 2,303 1,442 1,637 1,945 2,120 2,303 44 Mortgage pools or trusts6 565,428 718,297 809,448 718,297 732,071 754,045 782,802 809,448 45 Government National Mortgage Association 262,697 317,555 340,527 317,555 318,703 322,616 333,177 340,527 46 1- to 4-family 256,920 309,806 331,257 309,806 310,473 314,728 324,573 331,257 47 Multifamily 5,777 7,749 9,270 7,749 8,230 7,888 8,604 9,270 48 Federal Home Loan Mortgage Corporation 171,372 212,634 224,967 212,634 214,724 216,155 220,684 224,967 49 1- to 4-family 166,667 205,977 218,513 205,977 208,138 209,702 214,195 218,513 50 Multifamily 4,705 6,657 6,454 6,657 6,586 6,453 6,489 6,454 51 Federal National Mortgage Association 97,174 139,960 178,250 139,960 145,242 157,438 167,170 178,250 52 1- to 4-family 95,791 137,988 172,331 137,988 142,330 153,253 162,228 172,331 53 Multifamily 1,383 1,972 5,919 1,972 2,912 4,185 4,942 5,919 54 Farmers Home Administration 348 245 104 245 172 106 106 104 55 1- to 4-family 142 121 26 121 65 23 27 26 S6 Multifamily 57 Commercial 132 63 38 63 58 41 38 38 58 Farm 74 61 40 61 49 42 41 40 59 Individuals and others7 320,658 331,384 339,821 331,384 331,110 340,266 338,054 339,821 60 1- to 4-family 177,374 171,317 173,128 171,317 169,459 177,108 172,527 173,128 61 Multifamily 66,940 75,437 77,917 75,437 76,071 76,572 77,310 77,917 62 Commercial 53,315 63,272 67,868 63,272 64,378 65,488 67,191 67,868 63 Farm 23,029 21,358 20,908 21,358 21,202 21,098 21,026 20,908 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. Includes private pools which are not data reported by FSLlC-insured institutions include loans in process and other shown as a separate line item. contra assets (credit balance accounts that must be subtracted from the corre- 7. Other holders include mortgage companies, real estate investment trusts, sponding gross asset categories to yield net asset levels). state and local credit agencies, state and local retirement funds, noninsured 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' 1989 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998877'' 11998888'' July Aug. Sept. Oct. Nov. Dec. Jan/ Feb/ Mar. Amounts outstanding (end of period) 1 Total 607,721 659,507 639,207 644,666 646,556 649,132 654,413 659,507 682,022 687,397 692,771 By major holder 2 Commercial banks 282,910 318,925 302,283 307,355 310,132 312,588 316,683 318,925 316,797 318,423 319,550 3 Finance companies 140,281 145,180 144,774 143,992 143,019 143,012 143,488 145,180 141,796 143,419 143,070 4 Credit unions 80,087 86,118 83,886 84,647 84,900 85,338 85,740 86,118 87,093 87,813 88,548 5 Retailers 40,975 43,498 42,023 42,121 42,349 42,614 42,910 43,498 40,986 41,052 41,300 6 Savings institutions 59,851 62,099 62,537 62,843 62,502 61,926 61,922 62,099 62,867 63,109 63,468 7 Gasoline companies 3,618 3,687 3,705 3,709 3,655 3,654 3,671 3,687 3,655 3,677 3,682 By major type of credit 8 Automobile 265,976 281,174 277,659 279,585 279,243 278,902 279,926 281,174 286,382 288,768 289,721 9 Commercial banks 109,201 123,259 116,852 119,383 120,525 120,939 122,392 123,259 122,160 122,983 123,683 10 Credit unions 40,351 41,326 41,093 41,296 41,250 41,293 41,316 41,326 41,707 41,964 42,227 11 Finance companies 98,195 97,204 99,731 98,705 97,257 96,877 96,657 97,204 87,968 88,789 89,567 12 Savings institutions 18,228 19,385 19,983 20,201 20,211 19,793 19,561 19,385 19,506 19,464 19,456 13 Revolving 153,884 174,792 165,343 167,125 168,273 170,131 173,030 174,792 176,716 178,570 182,873 14 Commercial banks 99,119 117,572 109,768 111,516 112,691 114,180 116,593 117,572 111,133 111,706 112,942 15 Retailers 36,389 38,692 37,386 37,471 37,682 37,919 38,170 38,692 36,176 36,257 36,489 16 Gasoline companies 3,618 3,687 3,705 3,709 3,655 3,654 3,671 3,687 3,655 3,677 3,682 17 Savings institutions 10,367 10,151 9,902 9,809 9,614 9,724 9,923 10,151 10,479 10,722 10,987 18 Credit unions 4,391 4,691 4,582 4,621 4,632 4,653 4,673 4,691 4,785 4,866 4,949 19 Mobile home 26,387 25,744 26,213 26,277 26,185 26,033 26,005 25,744 26,036 25,992 24,326 20 Commercial banks 9,220 8,974 9,097 9,140 9,119 9,225 9,224 8,974 8,974 8,974 8,889 21 Finance companies 7,762 7,186 7,412 7,369 7,334 7,194 7,197 7,186 7,376 7,308 5,687 22 Savings institutions 9,406 9,583 9,704 9,768 9,732 9,614 9,584 9,583 9,687 9,710 9,750 23 Other 161,475 177,798 169,993 171,679 172,855 174,066 175,452 177,798 192,887 194,068 195,851 24 Commercial banks 65,370 69,120 66,566 67,316 67,798 68,244 68,474 69,120 74,532 74,760 74,035 25 Finance companies 34,324 40,790 37,631 37,918 38,428 38,941 39,633 40,790 46,453 47,322 47,816 26 Credit unions 35,344 40,102 38,211 38,730 39,018 39,392 39,752 40,102 40,601 40,983 41,373 27 Retailers 4,586 4,807 4,637 4,650 4,667 4,694 4,739 4,807 4,809 4,795 4,811 28 Savings institutions 21,850 22,981 22,948 23,065 22,945 22,794 22,854 22,981 23,196 23,214 23,275 Net change (during period) 29 Total 35,674 51,786 1,371 5,459 1,890 2,576 5,281 5,094 22,514 5,375 5,374 By major holder 30 Commercial banks 19,884 36,015 1,178 5,072 2,777 2,457 4,094 2,242 -2,127 1,626 1,127 31 Finance companies 6,349 4,899 -743 -782 -973 -7 476 1,692 -3,383 1,622 -349 32 Credit unions 3,852 6,032 237 761 254 438 402 378 975 720 734 33 Retailers 1,568 2,523 173 98 228 265 296 589 -2,513 67 247 34 Savings institutions 3,689 2,249 534 306 -341 -576 -4 178 768 242 359 35 Gasoline companies 331 69 -7 4 -54 -1 17 15 -32 22 6 By major type of credit 36 Automobile 18,663 15,198 -400 1,926 -342 -341 1,024 1,248 5,208 2,386 953 37 Commercial banks 7,919 14,058 253 2,531 1,142 414 1,453 868 -1,100 823 701 38 Credit unions 1,917 975 -51 204 -46 42 23 10 381 257 263 39 Finance companies 5,639 -991 -892 -1,026 -1,448 -380 -220 547 -9,236 821 778 40 Savings institutions 3,188 1,157 289 218 10 -418 -233 -176 121 -42 -8 41 Revolving 16,871 20,908 935 1,782 1,148 1,858 2,899 1,762 1,924 1,854 4,303 42 Commercial banks 12,188 18,452 834 1,748 1,175 1,489 2,413 979 -6,439 573 1,236 43 Retailers 1,866 2,303 154 85 211 237 251 521 -2,515 81 232 44 Gasoline companies 331 69 -7 4 -54 -1 17 15 -32 22 6 45 Savings institutions 1,771 -216 -56 -94 -195 111 198 228 328 243 265 46 Credit unions 715 300 10 39 11 21 19 18 94 81 83 47 Mobile home -968 -643 38 65 -93 -152 -27 -262 293 -44 -1,666 48 Commercial banks 191 -245 19 43 -21 106 -1 -250 -1 1 -85 49 Finance companies -1,052 -576 -80 -43 -35 -140 3 -11 190 -68 -1,621 50 Savings institutions -108 177 99 64 -36 -118 -29 -1 104 23 40 51 Other 1,108 16,324 797 1,686 1,177 1,211 1,386 2,346 15,089 1,180 1,783 52 Commercial banks -415 3,749 72 750 482 447 230 646 5,412 229 -725 53 Finance companies 1,761 6,466 228 287 511 512 693 1,156 5,663 869 494 54 Credit unions 1,221 4,758 278 518 288 374 359 350 500 382 389 55 Retailers -297 221 19 13 16 28 45 68 3 -14 16 56 Savings institutions -1,162 1,131 201 117 -120 -150 59 127 215 18 61 1. The Board's series cover most short-and intermediate-term credit extended These data also appear in the Board's G.19 (421) release. For address, see to individuals that is scheduled to be repaid (or has the option of repayment) in inside front cover. two or more installments. 2. More detail for finance companies is available in the G. 20 statistical release. 3. Excludes 30-day charge credit held by travel and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • July 1989 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1988 1989 IItteemm 11998866 11998877 11998888 Sept. Oct. Nov. Dec. Jan. Feb. Mar. INTEREST RATES Commercial banks2 i 2 1 4 2 1 4 8 2 - - 0 m m -m o o n o n t n t h h t h p n m e e r w o s o b c n i a l a e r l 3 home 1 1 1 3 4 1 . . . 9 8 3 9 2 3 1 1 1 4 3 0 . . . 2 3 4 2 8 5 1 1 1 3 4 0 . . . 5 6 8 4 8 5 n n n . . . a a a . . . n n n . . . a a a . . . 1 1 1 3 5 1 . . . 6 0 2 1 6 2 n.a. 1 1 1 4 5 1 . . . 0 2 7 0 2 6 4 Credit card 18.26 17.92 17.78 n.a. n.a. 17.77 nn..aa.. 1177..8833 nn..aa.. Auto finance companies 5 New car 9.44 10.73 12.60 12.93 13.10 13.20 13.25 13.27 13.07 13.07 6 Used car 15.95 14.60 15.11 15.46 15.67 15.75 15.80 15.57 15.90 16.12 OTHER TERMS4 Maturity (months) 1 New car 50.0 53.5 56.2 56.3 56.3 56.2 56.3 56.2 55.7 55.4 8 Used car 42.6 45.2 46.7 46.5 46.3 46.2 46.0 4477..88 4477..44 4477..11 Loan-to-value ratio 9 New car 91 93 94 94 94 94 94 94 92 92 10 Used car 97 98 98 98 9999 9988 98 9977 9988 9977 Amount financed (dollars) 11 New car 10,665 11,203 11,663 11,530 11,845 11,975 12,068 11,956 11,819 11,867 12 Used car 6,555 7,420 7,824 7,903 7,944 7,991 8,022 8,006 8,022 7,958 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 Q2 Q3 Q4 QL Q2 Q3 Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 750.8 846.3 830.6 682.0 712.8 753.2 653.6 769.4 713.9 687.8 748.8 700.7 By sector and instrument 2 U.S. government 198.8 223.6 215.0 144.9 157.5 146.8 103.1 168.2 227.7 89.2 188.6 124.4 3 Treasury securities 199.0 223.7 214.7 143.4 140.0 148.7 104.0 163.2 228.2 81.5 167.7 82.8 4 Agency issues and mortgages -.2 -.1 .4 1.5 17.4 -1.9 -.9 5.0 -.5 7.7 20.9 41.6 5 Private domestic nonfinancial sectors 552.0 622.7 615.6 537.1 555.3 606.4 550.5 601.2 486.3 598.6 560.2 576.3 <> Debt capital instruments 319.3 452.3 460.7 446.0 400.8 466.7 428.3 415.8 351.2 445.8 424.9 381.4 7 Tax-exempt obligations 50.4 136.4 30.8 34.5 36.3 33.1 32.7 33.5 24.8 32.6 44.4 43.5 8 Corporate bonds 46.1 73.8 121.3 99.9 97.4 88.5 100.7 81.6 101.4 118.4 90.3 79.3 9 Mortgages 222.8 242.2 308.6 311.6 267.1 345.1 294.9 300.8 225.0 294.8 290.1 258.5 10 Home mortgages 136.7 156.8 210.9 221.7 196.4 243.5 212.1 206.9 162.4 240.3 206.5 176.6 11 Multifamily residential 25.2 29.8 33.5 24.4 15.1 30.9 23.3 15.9 23.6 2.6 13.5 20.6 12 Commercial 62.2 62.2 73.6 72.0 57.9 77.2 64.2 79.9 44.9 53.5 71.8 61.5 13 Farm -1.2 -6.6 -9.5 -6.4 -2.3 -6.6 -4.7 -1.9 -6.0 -1.7 -1.6 -.1 14 Other debt instruments 232.7 170.3 154.9 91.1 154.6 139.7 122.2 185.4 135.1 152.8 135.4 194.9 15 Consumer credit 81.6 82.5 54.4 40.7 49.3 52.4 61.4 49.4 34.8 59.5 34.9 67.9 16 Bank loans n.e.c 67.1 38.6 69.3 8.8 42.5 36.6 21.0 85.3 36.1 76.0 9.5 48.4 17 Open market paper 21.7 14.6 -9.3 2.3 11.6 4.7 1.0 3.9 -3.8 4.0 11.1 35.1 18 Other 62.2 34.6 40.5 39.3 51.2 46.1 38.7 46.9 67.9 13.4 79.9 43.5 19 By borrowing sector 552.0 622.7 615.6 537.1 555.3 606.4 550.5 601.2 486.3 598.6 560.2 576.3 20 State and local governments 27.4 91.8 44.3 34.0 34.9 31.4 34.8 32.9 19.5 29.2 46.1 44.6 21 Households 231.5 283.6 282.2 260.3 248.9 302.7 281.1 264.9 203.0 304.6 258.3 229.9 22 Nonfinancial business 293.1 247.3 289.0 242.7 271.6 272.4 234.5 303.4 263.7 264.8 255.8 301.7 23 Farm -.4 -14.5 -16.3 -10.6 -3.4 -12.7 -9.4 3.3 -15.6 -3.6 -1.8 7.5 24 Nonfarm noncorporate 123.2 129.3 103.2 107.9 82.1 117.7 97.4 116.3 86.4 70.9 99.7 71.6 25 Corporate 170.3 132.4 202.1 145.4 192.9 167.4 146.6 183.8 192.9 197.6 158.0 222.7 26 Foreign net borrowing in United States 8.4 1.2 9.6 4.3 9.3 -.1 12.3 13.9 -1.0 5.2 4.6 28.5 27 Bonds 3.8 3.8 3.0 6.8 9.4 -4.1 6.7 21.6 16.8 -2.7 6.5 17.2 28 Bank loans n.e.c -6.6 -2.8 -1.0 -3.6 -.8 -3.5 -3.7 -6.1 .7 -3.5 2.9 -3.2 29 Open market paper 6.2 6.2 11.5 2.1 9.6 -6.4 21.6 -2.5 1.5 6.4 10.7 20.0 30 U.S. government loans 5.0 -5.9 -3.9 -1.0 -9.0 13.9 -12.3 .8 -19.9 5.1 -15.6 -5.5 31 Total domestic plus foreign 759.2 847.5 840.2 686.4 722.1 753.1 665.8 783.2 713.0 693.0 753.4 729.1 Financial sectors 32 Total net borrowing by financial sectors 148.7 198.3 297.2 303.3 240.0 316.7 306.4 250.2 134.4 262.9 235.5 327.0 By instrument 33 U.S. government related 74.9 101.5 178.1 185.8 136.1 196.8 185.5 167.5 120.3 101.8 •150.6 171.7 34 Sponsored credit agency securities 30.4 20.6 15.2 30.2 44.9 21.5 32.0 71.6 56.8 9.4 42.8 70.8 35 Mortgage pool securities 44.4 79.9 163.3 156.4 91.2 175.4 153.5 95.9 63.4 92.4 107.8 100.9 3366 1.1 --..44 -.8 --..11 37 Private financial sectors 73.8 96.7 119.1 117.5 103.9 119.9 120.8 82.7 14.1 161.1 84.9 155.3 38 Corporate bonds 33.0 47.9 70.9 67.2 37.3 45.6 77.7 42.4 11.1 60.1 40.9 37.0 39 Mortgages .4 .1 .1 .4 -.1 .1 .2 .8 -.1 * * -.2 40 Bank loans n.e.c .7 2.6 4.0 -3.3 -6.2 .6 6.3 -10.7 -26.8 8.7 -8.6 2.1 41 Open market paper 24.1 32.0 24.2 28.8 53.1 54.0 14.3 5.4 24.6 82.2 26.1 79.6 42 Loans from Federal Home Loan Banks 15.7 14.2 19.8 24.4 19.7 19.6 22.2 44.9 5.4 10.1 26.6 36.8 By sector 43 148.7 198.3 297.2 303.3 240.0 316.7 306.4 250.2 134.4 262.9 235.5 327.0 44 Sponsored credit agencies 30.4 21.7 14.9 29.5 44.9 21.4 32.0 71.6 56.8 9.4 42.8 70.8 45 Mortgage pools 44.4 79.9 163.3 156.4 91.2 175.4 153.5 95.9 63.4 92.4 107.8 100.9 46 Private financial sectors 73.8 96.7 119.1 117.5 103.9 119.9 120.8 82.7 14.1 161.1 84.9 155.3 47 Commercial banks 7.3 -4.9 -3.6 7.1 -4.5 20.0 -13.1 15.0 -22.4 6.2 -8.3 6.3 48 Bank affiliates 15.6 14.5 4.6 2.9 -12.8 -2.7 11.3 -22.6 -67.4 11.3 9.7 -4.5 49 Savings and loan associations 22.7 22.3 29.8 36.0 29.2 22.2 41.9 51.9 9.1 16.6 54.3 37.0 50 Finance companies 18.2 52.7 48.4 31.6 58.4 40.7 35.5 30.2 50.9 94.2 9.4 79.2 51 REITs .8 .5 1.0 .8 1.6 -1.3 2.5 2.2 1.0 1.7 -1.4 5.2 52 CMO Issuers 9.3 11.5 39.0 39.1 31.9 41.0 42.7 6.0 43.0 31.2 21.3 32.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • July 1989 1.57—Continued 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998844 11998855 11998866 11998877 11998888 Q2 Q3 Q4 Q1 Q2 Q3 Q4 All sectors 53 Total net borrowing 907.9 1,045.7 1,137.4 989.7 962.1 1,069.8 972.2 1,033.4 847.4 955.9 988.9 1,056.1 54 U.S. government securities 273.8 324.2 393.5 331.5 293.6 343.7 288.6 335.7 347.9 191.0 339.2 296.1 55 State and local obligations 50.4 136.4 30.8 34.5 36.3 33.1 32.7 33.5 24.8 32.6 44.4 43.5 56 Corporate and foreign bonds 83.0 125.4 195.2 174.0 144.1 130.0 185.1 145.6 129.3 175.9 137.7 133.4 57 Mortgages 223.1 242.2 308.6 312.0 267.0 345.2 295.1 301.6 224.8 294.8 290.1 258.3 58 Consumer credit 81.6 82.5 54.4 40.7 49.3 52.4 61.4 49.4 34.8 59.5 34.9 67.9 59 Bank loans n.e.c 61.1 38.3 72.3 1.9 35.6 33.8 23.6 68.5 10.0 81.1 3.7 47.4 60 Open market paper 52.0 52.8 26.4 33.2 74.3 52.3 36.9 6.7 22.3 92.5 48.0 134.7 61 Other loans 82.9 44.0 56.1 62.0 61.9 79.4 48.7 92.5 53.5 28.6 90.9 74.8 62 MEMO: U.S. government, cash balance 6.3 14.4 * -7.9 4.6 77.7 -19.6 -54.7 60.9 3.3 16.2 -61.9 Totals net of changes in U.S. government cash balances 63 Net borrowing by domestic nonfinancial 744.5 831.9 830.6 689.9 708.2 675.5 673.2 824.0 653.0 684.5 732.7 762.6 64 Net borrowing by U.S. government 192.5 209.3 215.0 152.8 152.9 69.1 122.7 222.8 166.8 86.0 172.4 186.3 External corporate equity funds raised in United States 65 Total net share issues -36.0 20.1 93.9 13.5 -114.4 13.9 -47.1 -82.7 -75.6 -131.1 -76.2 -174.5 66 Mutual funds 29.3 84.4 161.8 72.3 -2.0 79.1 13.8 -9.1 5.0 -8.0 0.3 -5.2 67 All other -65.3 -64.3 -68.0 -58.8 -112.4 -65.2 -60.9 -73.6 -80.5 -123.1 -76.5 -169.3 68 Nonfinancial corporations -74.5 -81.5 -80.8 -76.5 -130.5 -83.0 -78.0 -88.0 -95.0 -140.0 -92.0 -195.0 69 Financial corporations 8.2 13.5 11.5 20.1 17.2 16.5 18.4 26.4 15.2 23.4 14.4 16.0 70 Foreign shares purchased in United States .9 3.7 1.3 -2.4 0.9 1.2 -1.3 -12.0 -.7 -6.5 1.1 9.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates. 1987 1988 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998855 11998866 11998877 11998888 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 846.3 830.6 682.0 712.8 552.0 753.2 653.6 769.4 713.9 687.8 748.8 700.7 By public agencies and foreign 2 Total net advances 193.1 304.2 256.7 233.1 270.9 279.3 211.1 265.4 261.7 168.0 222299..11 273.7 3 U.S. government securities 37.9 69.4 68.2 77.6 59.0 55.3 35.1 123.3 148.6 42.4 21.1 98.4 4 Residential mortgages 94.6 160.3 153.2 100.6 194.8 169.4 146.0 102.7 83.6 106.7 108.3 103.7 5 FHLB advances to savings and loans 14.2 19.8 24.4 19.7 11.0 19.6 22.2 44.9 5.4 10.1 26.6 36.8 6 Other loans and securities 46.3 54.6 10.9 35.2 6.1 35.1 7.8 -5.5 24.1 8.7 73.2 34.8 Total advanced, by sector 7 U.S. government 16.8 9.7 -11.9 -4.1 -8.5 -12.3 -24.1 -2.6 -8.8 -21.8 8.4 5.8 8 Sponsored credit agencies 95.5 177.3 181.4 120.8 204.9 177.0 187.0 156.6 103.1 103.4 129.9 146.9 9 Monetary authorities 18.4 19.4 24.7 10.5 9.4 29.8 29.0 30.4 -5.5 4.1 17.1 26.5 10 Foreign 62.3 97.8 62.5 105.9 65.1 84.8 19.1 81.0 172.9 82.4 73.8 94.6 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 101.5 178.1 185.8 136.1 193.5 196.8 185.5 167.5 120.3 101.8 150.6 171.7 12 Foreign 1.2 9.6 4.3 9.3 -8.7 -.1 12.3 13.9 -1.0 5.2 4.6 28.5 Private domestic funds advanced 13 Total net advances 756.0 714.1 615.5 625.1 465.9 670.6 640.3 685.3 571.5 626.8 674.9 627.2 14 U.S. government securities 286.2 324.1 263.3 215.9 299.0 288.5 253.5 212.4 199.3 148.6 318.1 197.7 15 State and local obligations 136.4 30.8 34.5 36.3 38.7 33.1 32.7 33.5 24.8 32.6 44.4 43.5 16 Corporate and foreign bonds 40.8 84.1 86.5 87.1 100.4 58.8 83.7 102.9 115.7 90.7 63.4 78.5 17 Residential mortgages 91.8 84.1 92.8 110.9 56.7 105.0 89.4 120.1 102.4 136.2 111.7 93.5 18 Other mortgages and loans 214.9 210.8 162.8 194.5 -18.0 204.8 203.2 261.4 134.7 228.9 163.9 250.7 19 LESS: Federal Home Loan Bank advances 14.2 19.8 24.4 19.7 11.0 19.6 22.2 44.9 5.4 10.1 26.6 36.8 Private financial intermediation 7.0 Credit market funds advanced by private financial institutions 569.8 746.5 566.0 577.7 521.5 551.2 641.3 550.1 652.3 567.8 489.2 601.7 21 Commercial banking 186.3 194.8 13$.3 149.1 -56.2 198.0 150.9 252.6 56.2 213.1 140.6 186.4 72 Savings institutions 83.0 105.5 140.4 101.7 89.9 132.0 188.7 151.0 82.4 66.0 159.7 98.7 73 Insurance and pension funds 148.9 181.9 211.9 231.5 266.3 179.5 247.5 154.3 279.3 230.5 175.3 240.8 24 Other finance 151.6 264.3 77.4 95.5 221.6 41.7 54.1 -7.8 234.4 58.2 13.6 75.7 75 Sources of funds 569.8 746.5 566.0 577.7 521.5 551.2 641.3 550.1 652.3 567.8 489.2 601.7 76 Private domestic deposits and RPs 210.6 264.7 146.2 187.7 -17.1 141.1 193.9 267.0 292.4 53.1 209.7 195.6 77 Credit market borrowing 96.7 119.1 117.5 103.9 146.5 119.9 120.8 82.7 14.1 161.1 84.9 155.3 78 Other sources 262.5 362.7 302.3 286.2 392.1 290.2 326.6 200.4 345.7 353.5 194.6 250.8 29 Foreign funds 19.7 12.9 43.7 5.9 14.9 35.1 99.5 25.2 -80.1 106.6 -50.4 47.5 30 Treasury balances 10.3 1.7 -5.8 1.3 -36.9 43.6 6.1 -36.1 53.3 -17.5 8.7 -39.1 31 Insurance and pension reserves 131.9 144.3 176.1 215.5 195.1 192.6 196.1 120.3 244.5 223.5 137.4 256.8 32 Other, net 100.7 203.8 88.4 63.4 219.0 18.9 24.8 90.9 128.1 40.9 98.9 -14.3 Private domestic nonfinancial investors 33 Direct lending in credit markets 282.9 86.7 167.0 151.2 90.9 239.3 119.8 217.9 -66.6 220.2 270.6 180.7 34 U.S. government securities 175.7 50.1 103.2 137.7 52.1 170.1 70.9 119.6 115.2 93.9 230.0 111.7 35 State and local obligations 39.6 -13.6 46.1 21.1 27.8 58.1 42.4 56.0 1.5 20.3 28.8 33.7 36 Corporate and foreign bonds 2.4 32.6 5.3 -18.7 9.3 -58.6 28.3 42.1 -97.9 36.0 -18.7 6.0 37 Open market paper 45.6 -3.0 7.9 13.1 -1.9 64.2 -23.3 -7.5 -68.7 77.4 35.3 8.3 38 Other 19.6 20.7 4.6 -2.0 3.6 5.6 1.6 7.7 -16.7 -7.4 -4.8 21.1 39 Deposits and currency 220.9 285.0 162.4 199.3 -46.6 149.2 229.3 317.8 287.4 83.8 232.7 193.2 40 Currency 12.4 14.4 19.0 15.9 9.4 12.5 17.3 36.8 8.2 11.9 28.6 14.7 41 Checkable deposits 40.9 93.2 -2.2 13.5 -98.4 40.0 35.3 14.2 4.4 18.3 -23.9 55.1 42 Small time and savings accounts 138.5 120.6 76.7 104.2 30.8 70.0 80.2 125.7 190.0 63.1 98.3 65.4 43 Money market fund shares 8.9 41.5 28.2 25.1 14.4 2.4 32.7 63.3 59.1 -34.8 13.0 63.0 44 Large time deposits 7.7 -11.4 26.7 26.9 14.0 4.4 -1.0 89.4 11.7 -16.2 122.7 -10.5 45 Security RPs 14.6 20.8 16.9 18.1 22.1 24.3 46.6 -25.6 27.3 22.7 -.4 22.6 46 Deposits in foreign countries -2.1 5.9 -2.8 -4.3 -38.9 -4.4 18.1 13.9 -13.2 18.8 -5.6 -17.1 47 Total of credit market instruments, deposits, and currency 503.7 371.8 329.4 350.5 44.3 388.5 349.1 535.7 220.9 304.0 503.3 374.0 48 Public holdings as percent of total 22.7 36.2 37.3 32.2 49.8 37.0 31.7 33.8 36.7 24.2 30.4 37.5 49 Private financial intermediation (in percent) 75.3 104.5 91.9 92.4 111.9 82.1 100.1 80.2 114.1 90.5 72.4 95.9 50 Total foreign funds 82.0 110.7 106.2 111.8 80.0 119.9 118.7 106.2 92.8 189.0 23.4 142.1 MEMO: Corporate equities not included above 51 Total net issues 20.1 93.9 13.5 -114.4 170.1 13.9 -47.1 -82.7 -75.6 -131.1 -76.2 -174.5 57 Mutual fund shares 84.4 161.8 72.3 -2.0 205.4 79.1 13.8 -9.1 5.0 -8.0 0.3 -5.2 53 Other equities -64.3 -68.0 -58.8 -112.4 -35.3 -65.2 -60.9 -73.6 -80.5 -123.1 -76.5 -169.3 54 Acquisitions by financial institutions 45.6 48.5 22.6 -3.3 29.2 72.6 5.2 -16.5 -35.4 -5.4 16.1 11.3 55 Other net purchases -25.5 45.4 -9.1 -111.0 140.9 -58.7 -52.4 -66.2 -40.2 -125.8 -92.3 -185.8 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also sum of lines 28 and 47 less lines 40 and 46. 48. Line 2/line 1. 18. Includes farm and commercial mortgages. 49. Line 20/line 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • July 1989 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1987 1988 Q2 Q3 Q4 Ql Q2 Q3 Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 5,204.3 5,953.7 6,797.0 7,618.1 7,917.8 8,074.9 8,302.7 8,441.2 8,618.5 8,797.7 9,002.8 By sector and instrument 2 U.S. government 1,177.9 1,376.8 1,600.4 1,815.4 1,875.7 1,897.8 1,960.3 2,003.2 2,022.3 2,063.9 2,117.8 i Treasury securities 1,174.4 1,373.4 1,597.1 1,811.7 1,871.5 1,893.8 1,955.2 1,998.1 2,015.3 2,051.7 2,095.2 4 Agency issues and mortgages 3.6 3.4 3.3 3.6 4.2 3.9 5.2 5.0 7.0 12.2 22.6 5 Private domestic nonfinancial sectors 4,026.4 4,577.0 5,196.6 5,802.7 6,042.1 6,177.2 6,342.4 6,438.0 6,596.2 6,733.7 6,885.1 6 Debt capital instruments 2,717.8 3,040.0 3,488.4 3,946.4 4,189.4 4,297.0 4,404.5 4,476.2 4,587.9 4,698.1 4,798.0 7 Tax-exempt obligations 471.7 522.1 658.4 689.2 705.2 715.5 723.7 728.0 735.8 749.4 760.1 8 Corporate bonds 423.0 469.2 542.9 664.2 718.5 743.7 764.1 789.5 819.1 841.7 861.5 9 Mortgages 1,823.1 2,048.8 2,287.1 2,593.0 2,765.7 2,837.7 2,916.6 2,958.8 3,033.0 3,107.1 3,176.4 10 Home mortgages 1,200.2 1,336.2 1,490.2 1,699.6 1,800.7 1,853.8 1,908.7 1,935.8 1,996.7 2,052.0 2,100.1 11 Multifamily residential 158.8 183.6 213.0 246.3 259.9 265.0 270.0 274.4 275.2 277.8 284.1 12 Commercial 350.4 416.5 478.1 551.4 613.8 629.0 649.1 660.6 673.3 690.1 705.7 13 Farm 113.7 112.4 105.9 95.8 91.3 90.0 88.9 88.0 87.8 87.2 86.5 14 Other debt instruments 1,308.6 1,536.9 1,708.2 1,856.3 1,852.7 1,880.2 1,937.9 1,961.8 2,008.3 2,035.6 2,087.1 15 Consumer credit 437.7 519.3 601.8 656.2 658.7 680.9 696.9 692.2 709.6 725.7 746.2 16 Bank loans n.e.c 490.2 552.9 592.6 658.6 636.3 637.5 656.7 668.4 689.3 689.8 699.2 17 Open market paper 36.8 58.5 72.2 62.9 67.9 68.1 73.8 73.5 77.8 80.3 85.4 18 Other 344.0 406.2 441.6 478.6 489.9 493.7 510.5 527.7 531.6 539.8 556.3 19 By borrowing sector 4,026.4 4,577.0 5,196.6 5,802.7 6,042.1 6,177.2 6,342.4 6,438.0 6,596.2 6,733.7 6,885.1 20 State and local governments 357.7 385.1 476.9 520.2 535.3 546.2 554.2 557.2 564.1 577.5 588.5 21 Households 1,811.6 2,038.2 2,314.5 2,594.2 2,691.2 2,762.8 2,836.5 2,862.0 2,942.8 3,012.6 3,079.4 22 Nonfinancial business 1,857.1 2,153.7 2,405.2 2,688.3 2,815.7 2,868.2 2,951.6 3,018.9 3,089.3 3,143.6 3,217.2 23 Farm 188.4 187.9 173.4 156.6 150.2 148.5 145.5 141.3 143.9 143.7 141.7 24 Nonfarm noncorporate 645.8 769.0 898.3 1,001.6 1,055.9 1,076.4 1,109.5 1,131.8 1,148.6 1,167.9 1,190.2 25 Corporate 1,022.9 1,196.8 1,333.5 1,530.1 1,609.6 1,643.3 1,696.6 1,745.8 1,796.8 1,832.0 1,885.3 26 Foreign credit market debt held in United States 227.3 235.1 236.7 238.2 236.8 238.9 244.3 245.1 246.4 246.6 253.6 27 Bonds 64.2 68.0 71.8 74.8 74.6 75.9 81.6 85.4 85.2 86.5 91.1 28 Bank loans n.e.c 37.4 30.8 27.9 26.9 25.4 24.2 23.3 22.8 22.4 22.7 22.5 29 Open market paper 21.5 27.7 33.9 37.4 35.6 40.6 41.2 42.5 44.0 46.3 50.9 30 U.S. government loans 104.1 108.6 103.0 99.1 101.2 98.2 98.1 94.4 94.7 91.1 89.1 31 Total domestic plus foreign 5,431.6 6,188.8 7,033.7 7,856.3 8,154.6 8,313.9 8,547.0 8,686.4 8,864.8 9,044.3 9,256.4 Financial sectors 32 Total credit market debt owed by financial sectors 857.9 1,006.2 1,206.2 1,510.8 1,710.0 1,783.8 1,862.8 1,882.9 1,954.9 2,014.6 2,102.8 By instrument 33 U.S. government related 456.7 531.2 632.7 810.3 937.1 981.6 1,026.5 1,050.6 1,076.9 1,116.3 1,162.6 34 Sponsored credit agency securities 206.8 237.2 257.8 273.0 275.8 283.7 303.2 313.5 317.9 328.5 348.2 35 Mortgage pool securities 244.9 289.0 368.9 531.6 656.4 692.9 718.3 732.1 754.0 782.8 809.4 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 37 Private financial sectors 401.2 475.0 573.4 700.5 772.9 802.1 836.3 832.4 878.0 898.3 940.2 38 Corporate bonds 115.8 148.9 197.5 268.4 304.6 324.2 335.6 337.5 352.3 362.8 372.9 39 Mortgages 2.1 2.5 2.7 2.7 2.9 2.9 3.1 3.1 3.1 3.1 3.0 40 Bank loans n.e.c 28.9 29.5 32.1 36.1 40.1 42.2 40.8 31.7 34.3 32.9 34.6 41 Open market paper 195.5 219.5 252.4 284.6 311.1 312.7 323.8 330.6 353.4 358.0 376.9 42 Loans from Federal Home Loan Banks... 59.0 74.6 88.8 108.6 114.3 120.1 133.1 129.5 134.8 141.6 152.8 43 Total, by sector 857.9 1,006.2 1,206.2 1,510.8 1,710.0 1,783.8 1,862.8 1,882.9 1,954.9 2,014.6 2,102.8 44 Sponsored credit agencies 211.8 242.2 263.9 278.7 280.7 288.7 308.2 318.5 322.9 333.5 353.1 45 Mortgage pools 244.9 289.0 368.9 531.6 656.4 692.9 718.3 732.1 754.0 782.8 809.4 46 Private financial sectors 401.2 475.0 573.4 700.5 772.9 802.1 836.3 832.4 878.0 898.3 940.2 47 Commercial banks 76.8 84.1 79.2 75.6 80.7 78.6 82.7 76.4 77.2 76.6 78.1 48 Bank affiliates 71.0 86.6 101.2 101.3 108.7 109.5 104.2 88.8 91.8 92.2 91.4 49 Savings and loan associations 73.9 93.2 115.5 145.1 157.0 165.4 181.1 177.4 186.9 197.9 210.3 50 Finance companies 171.7 193.2 246.9 308.1 329.5 340.4 358.0 368.4 392.4 397.1 416.4 51 REITs 3.5 4.3 5.6 6.5 6.1 6.8 7.3 7.6 8.0 7.6 8.9 52 CMO issuers 4.2 13.5 25.0 64.0 90.9 101.6 103.1 113.9 121.7 127.0 135.1 All sectors 53 Total credit market debt 6,289.5 7,195.0 8,239.8 9,367.2 9864.6 10,097.6 10,409.8 10,569.3 10,819.7 11,058.9 11,359.2 54 U.S. government securities 1,629.4 1,902.8 2,227.0 2,620.0 2,807.8 2,874.4 2,981.8 3,048.8 3,094.2 3,175.2 3,275.4 55 State and local obligations 471.7 522.1 658.4 689.2 705.2 715.5 723.7 728.0 735.8 749.4 760.1 56 Corporate and foreign bonds 603.0 686.0 812.1 1,007.4 1,097.7 1,143.9 1,181.4 1,212.3 1,256.6 1,291.0 1,325.4 57 Mortgages 1,825.4 2,051.4 2,289.8 2,595.8 2,768.6 2,840.7 2,919.8 2,961.9 3,036.1 3,110.2 3,179.5 58 Consumer credit 437.7 519.3 601.8 656.2 658.7 680.9 696.6 692.2 709.6 725.7 746.2 59 Bank loans n.e.c 556.5 613.2 652.6 721.6 701.7 703.8 720.8 722.9 746.0 745.4 756.4 60 Open market paper 253.8 305.7 358.5 384.9 414.6 421.4 438.8 446.7 475.3 484.6 513.1 61 Other loans 512.1 594.4 639.5 692.0 710.4 717.0 746.6 756.6 766.1 777.4 803.1 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 Q2 Q3 Q4 QL Q2 Q3 Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 5,204.3 5,953.7 6,797.0 7,618.1 7,917.8 8,074.9 8,302.7 8,441.2 8,618.5 8,797.7 9,002.8 By public agencies and foreign 2 Total held 1,101.7 1,259.2 1,459.4 1,759.3 1,918.0 1,967.0 2,038.2 2,093.9 2,141.1 2,192.2 22,,226655..99 3 U.S. government securities 339.0 377.9 421.8 491.2 519.5 525.6 559.4 592.7 607.1 609.1 637.0 4 Residential mortgages 367.0 423.5 518.2 678.5 800.0 834.6 862.0 880.6 906.1 934.9 962.6 5 FHLB advances to savings and loans 59.0 74.6 88.8 108.6 114.3 120.1 133.1 129.5 134.8 141.6 152.8 6 Other loans and securities 336.8 383.1 430.6 481.0 484.3 486.8 483.7 491.1 493.0 506.6 513.5 7 Total held, by type of lender 1,101.7 1,259.2 1,459.4 1,759.3 1,918.0 1,967.0 2,038.2 2,093.9 2,141.1 2,192.2 2,265.9 8 U.S. government 212.8 229.7 247.6 254.3 242.9 237.1 235.0 233.3 228.6 225.6 225.4 9 Sponsored credit agencies and mortgage pools ... 482.0 556.3 657.8 833.9 957.9 1,003.7 1,044.9 1,064.0 1,091.6 1,126.7 1,165.7 10 Monetary authority 159.2 167.6 186.0 205.5 214.9 219.6 230.1 224.9 229.7 230.8 240.6 11 Foreign 247.7 305.6 367.9 465.7 502.3 506.7 528.2 571.8 591.1 609.2 634.1 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools ... 456.7 531.2 632.7 810.3 937.1 981.6 1,026.5 1,050.6 1,076.9 1,116.3 1,162.6 13 Foreign 227.3 235.1 236.7 238.2 236.8 238.9 244.3 245.1 246.4 246.6 253.6 Private domestic holdings 14 Total private holdings 4,786.6 5,460.8 6,207.0 6,907.3 7,173.6 7,328.5 7,535.3 7,643.0 7,800.7 7,968.3 8,153.1 15 U.S. government securities 1,290.4 1,524.9 1,805.2 2,128.7 2,288.3 2,348.8 2,422.4 2,456.0 2,487.0 2,566.1 2,638.3 16 State and local obligations 471.7 522.1 658.4 689.2 705.2 715.5 723.7 728.0 735.8 749.4 760.1 17 Corporate and foreign bonds 441.7 476.8 517.6 601.7 642.4 663.4 688.1 716.3 740.7 756.6 775.2 18 Residential mortgages 992.2 1,096.5 1,185.1 1,267.4 1,260.6 1,284.2 1,316.7 1,329.6 1,365.9 1,394.9 1,421.7 19 Other mortgages and loans 1,649.6 1,915.2 2,129.5 2,328.9 2,391.5 2,436.6 2,517.4 2,542.5 2,606.0 2,642.9 2,710.6 20 LESS: Federal Home Loan Bank advances 59.0 74.6 88.8 108.6 114.3 120.1 133.1 129.5 134.8 141.6 152.8 Private financial intermediation 21 Credit market claims held by private financial institutions 4,111.2 4,691.0 5,264.4 6,009.5 6,277.9 6,434.3 6,593.7 6,725.8 6,879.2 7,000.0 7,164.1 22 Commercial banking 1,622.1 1,791.1 1,978.5 2,173.2 2,207.9 2,248.7 2,309.6 2,322.2 2,377.5 2,416.4 2,458.6 23 Savings institutions 944.0 1,092.8 1,178.4 1,283.0 1,355.4 1,396.5 1,434.2 1,438.9 1,467.6 1,502.5 1,528.6 74 Insurance and pension funds 1,093.5 1,215.3 1,364.2 1,546.0 1,653.0 1,716.0 1,758.0 1,823.3 1,880.0 1,925.8 1,989.4 25 Other finance 451.6 591.7 743.4 1,007.3 1,061.5 1,073.1 1,091.9 1,141.4 1,154.2 1,155.3 1,187.4 26 Sources of funds 4,111.2 4,691.0 5,264.4 6,009.5 6,277.9 6,434.3 6,593.7 6,725.8 6,879.2 7,000.0 7,164.1 77 Private domestic deposits and RPs 2,389.8 2,711.5 2,922.1 3,182.6 3,198.6 3,234.4 3,328.4 3,386.5 3,399.3 3,438.3 3,516.1 28 Credit market debt 401.2 475.0 573.4 700.5 772.9 802.1 836.3 832.4 878.0 898.3 940.2 79 Other sources 1,320.2 1,504.5 1,768.9 2,126.4 2,306.3 2,397.7 2,428.9 2,506.9 2,601.9 2,663.4 2,707.8 30 Foreign funds -23.0 -14.1 5.6 18.6 26.1 52.7 62.2 45.9 62.3 51.9 68.1 31 Treasury balances 11.5 15.5 25.8 27.5 30.9 33.0 21.6 23.5 32.6 34.2 23.0 3? Insurance and pension reserves 1,036.1 1,160.8 1,289.5 1,427.9 1,507.9 1,553.5 1,593.3 1,653.0 1,704.9 1,741.2 1,795.5 33 Other, net 295.6 342.2 448.0 652.5 741.4 758.6 751.7 784.6 802.1 836.0 821.2 Private domestic nonfinancial investors 34 Credit market claims 1,076.6 1,244.8 1,516.0 1,598.3 1,668.7 1,696.3 1,777.9 1,749.6 1,799.4 1,866.7 1,929.1 35 U.S. government securities 548.6 663.6 830.7 881.2 950.4 969.4 1,011.1 1,021.4 1,040.3 1,102.2 1,148.8 36 Tax-exempt obligations 170.0 196.3 235.9 222.3 243.1 255.9 268.3 265.6 272.9 282.4 289.4 37 Corporate and foreign bonds 45.4 44.5 47.6 80.1 71.4 80.6 84.8 67.9 74.0 71.3 66.1 38 Open market paper 68.4 72.4 118.0 115.0 132.6 118.7 140.5 124.0 144.6 144.5 153.6 39 Other 244.3 268.0 283.8 299.7 271.2 271.9 273.2 270.6 267.6 266.3 271.2 40 Deposits and currency 2,566.4 2,891.7 3,112.5 3,393.4 3,405.6 3,444.5 3,555.4 3,608.3 3,634.5 3,672.8 3,754.7 41 Currency 150.9 159.6 171.9 186.3 191.3 192.4 205.4 204.0 209.9 213.4 221.2 42 Checkable deposits 350.9 378.8 419.7 512.9 488.0 487.4 510.3 490.9 505.8 490.5 523.8 43 Small time and savings accounts 1,542.9 1,693.4 1,831.9 1,948.3 1,977.8 1,990.9 2,025.0 2,078.8 2,091.7 2,109.7 2,129.2 44 Money market fund shares 169.5 218.5 227.3 268.9 279.5 286.4 297.1 322.1 310.4 311.1 322.1 45 Large time deposits 247.7 332.1 339.8 328.4 322.4 326.0 355.1 350.0 343.0 377.0 382.0 46 Security RPs 78.8 88.7 103.3 124.1 130.9 143.6 141.0 144.6 148.4 149.9 159.1 47 Deposits in foreign countries 25.7 20.6 18.5 24.5 15.7 17.8 21.6 17.8 25.2 21.2 17.4 48 Total of credit market instruments, deposits, and currency 3,643.0 4,136.5 4,628.5 4,991.7 5,074.2 5,140.8 5,333.3 5,357.9 5,433.9 5,539.5 5,683.9 49 Public holdings as percent of total 20.2 20.3 20.7 22.4 23.5 23.6 23.8 24.1 24.1 24.2 24.4 50 Private financial intermediation (in percent) 85.8 85.9 84.8 87.0 87.5 87.7 87.5 87.9 88.1 87.8 87.8 51 Total foreign funds 224.7 291.5 373.5 484.2 528.4 559.4 590.5 617.6 653.5 661.1 702.2 MEMO: Corporate equities not included above 52 Total market value 2,134.0 2,158.2 2,824.5 3,362.0 4,110.0 4,300.8 3,313.4 3,494.7 3,614.1 3,568.8 3,594.3 53 Mutual fund shares 112.1 136.7 240.2 413.5 520.7 525.1 460.1 479.2 486.8 478.1 475.2 54 Other equities 2,021.9 2,021.5 2,584.3 2,948.5 3,589.3 3,775.7 2,853.2 3,015.6 3,127.3 3,090.8 3,119.1 55 Holdings by financial institutions 612.0 615.6 800.0 972.2 1,238.9 1,312.5 1,021.7 1,090.7 1,142.0 1,135.4 1,153.2 56 Other holdings 1,522.0 1,542.6 2,024.5 2,389.8 2,871.1 2,988.4 2,291.7 2,404.0 2,472.1 2,433.4 2,441.1 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. 6. Includes farm and commercial mortgages. 35-39. Lines 15-19 less amounts acquired by private finance plus amounts 12. Credit market debt of federally sponsored agencies, and net issues of borrowed by private finance. Line 39 includes mortgages. federally related mortgage pool securities. 41. Mainly an offset to line 10. 14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34. 48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47. Also sum of lines 29 and 48 less lines 41 and 47. 49. Line 2/1 ine 1 and 13. 19. Includes farm and commercial mortgages. 50. Line 21/line 14. 27. Line 40 less lines 41 and 47. 51. Sum of lines 11 and 30. 28. Excludes equity issues and investment company shares. Includes line 20. 52-54. Includes issues by financial institutions. 30. Foreign deposits at commercial banks plus bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts affiliates, less claims on foreign affiliates and deposits by banking in foreign banks. outstanding may be obtained from Flow of Funds Section, Stop 95, Division of 31. Demand deposits and note balances at commercial banks. Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • July 1989 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1988 1989 MMeeaassuurree 11998866 11998877 11998888 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.' Apr. 1 Industrial production 125.1 129.8 137.2 138.5 138.6 139.4 139.9 140.4 140.8r 140.4' 140.5 141.1 Market groupings 2 Products, total 133.3 81.1 145.9 147.3 147.4 148.1 148.4 149.4 150. r 150.0' 150.0 150.6 3 Final, total 132.5 136.8 144.3 145.8 145.8 146.4 146.8 147.7 148.2r 148.5' 148.2 149.1 4 Consumer goods 124.0 127.7 133.9 135.0 134.8 136.4 136.8 138.2 138.5' 138.6' 137.8 138.6 5 Equipment 143.6 148.8 158.2 160.1 160.4 154.0 159.9 160.4 161.r 161.5' 162.1 162.9 6 Intermediate 136.2 143.5 151.5 152.3 152.9 154.0 154.2 155.0 156.6r 155.2' 156.3 155.8 7 Materials 113.8 118.2 125.3 126.5 126.5 127.5 128.3 128.3 128.1' 127.4' 127.4 128.2 Industry groupings 8 Manufacturing 129.1 134.6 142.8 144.0 144.4 145.3 145.8 146.3 147.2' 146.7' 146.7 147.3 Capacity utilization (percent)2 9 Manufacturing 79.7 81.1 83.5 84.0 84.0 84.3 84.4 84.4 84.7' 84.2' 83.9 84.0 10 Industrial materials industries 78.6 80.5 83.7 84.3 84.1 84.7 85.1 84.9 84.6' 84.C 83.8 84.2 11 Construction contracts (1982 = 100)3 158.0 164.0 161.0 162.0 157.0 164.0 158.0 163.0 155.0 148.0 150.0 163.0 12 Nonagricultural employment, total4 120.7 124.1 128.6 129.1 129.4 129.7 130.3 130.5 131.0 131.4 131.6 131.7 13 Goods-producing, total 100.9 101.8 105.0 105.3 105.4 105.8 106.2 106.4 107.0 106.9 106.7 106.8 14 Manufacturing, total 96.3 96.8 99.2 99.4 99.3 99.8 100.1 100.3 100.5 100.5 100.5 100.5 15 Manufacturing, production-worker.... 91.1 91.9 94.3 94.4 94.3 94.9 95.2 95.3 95.6 95.6 95.6 95.5 16 Service-producing 129.0 133.4 138.5 139.0 139.5 139.8 140.3 140.6 141.1 141.6 142.0 142.2 17 Personal income, total 219.7 235.1 252.8 254.5 256.0 259.8 259.1 261.3 265.7 268.5 270.7 271.8 18 Wages and salary disbursements 210.7 226.2 245.2 247.4 249.0 252.2 253.0 254.5 257.5 260.8 260.8 262.4 19 Manufacturing 177.4 183.8 195.9 196.8 198.1 202.2 201.1 200.8 202.7 203.6 206.9 204.8 20 Disposable personal income 218.9 232.7 251.7 254.2 255.6 259.6 258.7 261.0 265.3 268.3 270.3 270.3 21 Retail sales6 199.3 210.8 225.2 226.6 226.1 229.6 232.4 231.8 233.2 232.2' 232.1 233.0 Prices7 22 Consumer (1982-84 = 100) 109.6 113.6 118.3 119.0 119.8 120.2 120.3 120.5 121.1 121.6 122.3 123.1 23 Producer finished goods (1982 = 100) ... 103.2 105.4 108.0 108.7 108.6 109.4 109.8 110.0 111.0 111.7 112.2 113.0 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 Com- NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6, merce, and other sources. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 3. Index of dollar value of total construction contracts, including residential, of Current Business. nonresidential and heavy engineering, from McGraw-Hill Information Systems Figures for industrial production for the last two months are preliminary and Company, F. W. Dodge Division. estimated, respectively. 4. Based on data in Employment and Earnings (U.S. Department of Labor). Series covers employees only, excluding personnel in the Armed Forces. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1988 1989 CCaatteeggoorryy 11998866 11998877 11998888 Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 182,822 185,010 186,837 187,178 187,333 187,471 187,618 187,859 187,979 188,102 188,228 2 Labor force (including Armed Forces)1 120,078 122,122 123,893 124,200 124,310 124,737 124,779 125,643 125,383 125,469 125,863 3 Civilian labor force 111177,,883344 111199,,886655 112211,,666699 112211,,998844 112222,,009911 112222,,551100 112222,,556633 112233,,442288 112233,,118811 112233,,226644 112233,,665599 Employment 4 Nonagricultural industries 106,434 109,232 111,800 112,194 112,335 112,709 112,816 113,411 113,630 113,930 114,009 5 Agriculture 33,,116633 33,,220088 33,,116699 33,,117766 33,,223388 33,,223388 33,,119933 33,,330000 33,,222233 33,,220066 33,,110044 Unemployment 6 Number 8,237 7,425 6,701 6,614 6,518 6,563 6,554 6,716 6,328 6,128 6,546 7 Rate (percent of civilian labor force).... 7.0 6.2 5.5 5.4 5.3 5.4 5.3 5.4 5.1 5.0 5.3 8 Not in labor force 62,744 62,888 62,944 62,978 63,023 62,734 62,839 62,216 62,596 62,633 62,365 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 99,525 102,310 106,039 106,737 106,973 107,419 107,641 108,065 108,341 108,512 108,629 10 Manufacturing 18,965 19,065 19,536 19,549 19,648 19,714 19,740 19,793 19,781 19,787 19,778 11 Mining 777 721 733 734 729 722 719 718 716 720 728 12 Contract construction 4,816 4,998 5,294 5,365 5,366 5,413 5,430 5,537 5,514 5,479 5,485 13 Transportation and public utilities 5,255 5,385 5,584 5,618 5,631 5,658 5,670 5,692 5,705 5,701 5,718 14 Trade 23,683 24,381 25,362 25,510 25,573 25,676 25,730 25,888 25,980 26,077 26,093 15 Finance 6,283 6,549 6,679 6,692 6,708 6,725 6,741 6,733 6,757 6,761 6,755 16 Service 23,053 24,196 25,464 25,737 25,826 25,947 26,070 26,145 26,272 26,373 26,472 17 Government 16,693 17,015 17,387 17,532 17,492 17,564 17,541 17,559 17,616 17,614 17,600 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 • July 1989 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1988 1989 1988 1989 1988 1989 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql' Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 136.0 138.4 139.9 141.0 164.2 165.2 166.3 167.5 82.8 83.8 84.1 83.9 2 Mining 103.4 103.9 104.2 102.3 127.0 126.3 125.7 125.1 81.5 82.3 82.9 81.5 3 Utilities 111.9 115.1 114.3 115.0 140.1 140.4 140.7 141.0 79.9 81.9 81.3 81.9 4 Manufacturing 141.5 144.0 145.8 147.5 170.2 171.5 172.8 174.3 83.2 84.0 84.4 84.3 5 Primary processing 123.9 125.9 127.7 128.8 142.7 143.9 145.2 146.5 86.8 87.5 87.9 87.4 6 Advanced processing.. 152.3 154.9 156.7 158.6 186.7 188.1 189.5 191.0 81.5 82.4 82.7 82.9 7 Materials 124.0 126.5 128.0 128.1 149.3 150.1 150.8 151.7 83.0 84.3 84.9 84.2 8 Durable goods 134.1 137.1 139.2 139.2 166.8 167.9 169.0 170.1 80.4 81.6 82.4 81.5 9 Metal materials 88.1 92.7 94.8 94.1 109.1 109.5 109.8 110.2 80.8 84.8 86.3'' 84.2 10 Nondurable goods 130.4 132.8 135.4 137.4 148.3 149.8 151.2 152.7 87.9 88.6r 89.5 89.5 11 Textile, paper, and chemical .. 132.4 135.3 138.1 140.3 148.5 150.2 151.8 153.5 89.2 90.0 91.0 90.9 12 Paper 145.9 148.9 148.6 148.1 149.2 150.7 152.3 154.0 97.8 98.8 97.6 96.2 13 Chemical 135.7 139.4 144.1 145.8 155.4 157.4 159.3 161.4 87.3 88.6 90.5 90.3 14 Energy materials 100.6 102.5 102.0 100.5 119.4 119.0 118.7 118.4 84.2 86.0 86.0 85.0 Previous cycle2 Latest cycle3 1988 1988 1989 High Low High Low Apr. Aug. Sept. Oct. Nov. Dec. Jan/ Feb/ Mar/ Apr. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 82.7 83.8 83.7 84.0 84.1 84.3 84.3 83.9 83.7 83.9 16 Mining 92.8 87.8 95.2 76.9 82.3 82.2 82.3 81.9 83.3 83.6 82.2 80.7 81.6 82.7 17 Utilities 95.6 82.9 88.5 78.0 79.3 83.9 80.4 81.0 80.8 82.0 80.9 82.6 82.1 82.1 18 Manufacturing 87.7 69.9 86.5 68.0 82.9 84.0 84.0 84.3 84.4 84.4 84.7 84.2 83.9 84.0 19 Primary processing 91.9 68.3 89.1 65.0 86.9 87.4 87.2 87.9 88.1 87.9 88.4 87.1 86.7 86.8 20 Advanced processing.. 86.0 71.1 85.1 69.5 81.2 82.4 82.4 82.6 82.6 82.8 83.1 82.9 82.6 82.8 21 Materials 92.0 70.5 89.1 68.5 82.9 84.3 84.1 84.7 85.1 84.9 84.6 84.0 83.8 84.2 22 Durable goods 91.8 64.4 89.8 60.9 79.7 81.4 81.9 82.4 82.7 82.1 82.1 81.4 80.9 81.0 23 Metal materials , ... 99.2 67.1 93.6 45.7 79.3 83.4 86.0 87.3 86.9 84.6 86.1 83.9 82.6 82.1 24 Nondurable goods .... 91.1 66.7 88.1 70.7 88.7 88.8 88.2 89.3 89.4 89.8 90.1 89.0 89.2 89.4 25 Textile, paper, and chemical 92.8 64.8 89.4 68.8 90.1 90.3 89.4 90.9 90.9 91.8 91.5 90.4 90.8 91.2 76 98.4 70.6 97.3 79.9 98.1 98.4 97.9 97.8 96 7 98 4 98 1 9955..99 94 7 77 92.5 64.4 87.9 63.5 88.0 89.0 88.0 90.2 90 5 90 7 90 7 8899 88 90 5 28 Energy materials 94.6 86.9 94.0 82.3 84.5 86.6 85.3 85.3 86.2 86.5 84.9 85.0 85.2 86.4 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 1988 1989 GGrroouuppss p p r o o r - - a 1 v 98 g 8 . tion Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan/ Feb. Mar.p Apr/ Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 137.2 135.4 136.1 136.5 138.0 138.5 138.6 139.4 139.9 140.4 140.8 140.4 140.5 141.1 2 Products 57.72 145.9 144.1 145.0 145.3 146.5 147.3 147.4 148.1 148.4 149.4 150.1 150.0 150.0 150.6 3 Final products 44.77 144.3 142.5 143.5 144.0 145.0 145.8 145.8 146.4 146.8 147.7 148.2 148.5 148.2 149.1 4 Consumer goods 25.52 133.9 131.9 132.7 133.0 134.2 135.0 134.8 136.4 136.8 138.2 138.5 138.6 137.8 138.6 5 Equipment 19.25 158.2 156.5 157.7 158.5 159.4 160.1 160.4 159.7 159.9 160.4 161.1 161.5 162.1 162.9 6 Intermediate products 12.94 151.5 149.6 150.4 150.0 151.6 152.3 152.9 154.0 154.2 155.0 156.6 155.2 156.3 155.8 7 Materials 42.28 125.2 123.6 123.9 124.5 126.4 126.5 126.5 127.5 128.3 128.3 128.1 127.4 127.4 128.2 Consumer goods 8 Durable consumer goods 6.89 125.3 123.3 125.6 125.3 125.3 125.7 126.3 129.3 129.2 131.9 131.5 131.5 129.2 130.3 9 Automotive products 2.98 124.9 121.9 127.1 127.1 124.4 124.2 126.4 128.9 129.5 134.5 132.5 131.6 128.6 130.8 10 Autos and trucks 1.79 122.7 118.0 126.9 125.3 120.8 123.1 124.8 128.3 129.5 138.0 135.6 133.1 127.9 131.7 11 Autos, consumer 1.16 93.4 91.0 98.9 99.0 93.8 93.0 97.7 101.3 101.0 105.1 99.6 96.0 94.4 98.8 12 Trucks, consumer .63 177.0 168.2 178.9 174.1 170.8 179.0 175.3 178.4 182.4 199.1 202.3 201.9 190.0 13 Auto parts and allied goods 1.19 128.1 127.8 127.4 129.7 129.9 125.9 128.8 129.8 129.5 129.3 127.9 129.4 129.7 129.4 14 Home goods 3.91 125.6 124.3 124.4 123.9 125.9 126.8 126.2 129.7 128.9 130.0 130.7 131.5 129.6 129.9 15 Appliances, A/C and TV 1.24 144.1 143.2 142.2 138.0 143.3 146.5 144.9 154.4 150.4 151.0 151.0 153.9 147.9 148.7 16 Appliances and TV 1.19 143.6 142.2 143.0 137.1 143.8 146.1 143.7 151.9 148.9 150.0 149.5 153.0 148.4 17 Carpeting and furniture .96 136.2 133.1 135.8 135.9 136.6 137.2 137.1 138.8 139.8 140.5 141.1 140.6 141.1 18 Miscellaneous home goods 1.71 106.3 105.7 105.2 107.0 107.4 106.8 106.6 106.7 107.3 108.9 110.1 110.2 109.9 19 Nondurable consumer goods 18.63 137.1 135.1 135.4 135.8 137.5 138.5 138.0 139.0 139.7 140.5 141.1 141.3 141.0 141.6 20 Consumer staples 15.29 144.9 142.5 143.1 143.5 145.3 146.6 145.8 147.0 147.9 148.9 149.4 149.7 149.5 150.1 21 Consumer foods and tobacco 7.80 140.9 138.3 139.2 139.3 141.1 141.3 141.1 142.4 143.7 144.5 144.8 144.7 143.8 22 Nonfood staples 7.49 149.1 146.8 147.0 147.9 149.6 152.1 150.7 151.8 152.2 153.6 154.2 154.8 155.5 156.6 23 Consumer chemical products 2.75 180.0 175.6 177.9 179.5 181.8 183.8 185.0 186.1 185.7 186.8 187.6 186.7 188.4 24 Consumer paper products 1.88 163.4 161.4 162.4 162.8 164.0 165.3 166.3 167.1 167.8 169.0 174.2 176.5 178.1 25 Consumer energy 2.86 110.0 109.6 107.3 107.7 109.3 113.0 107.6 108.9 109.8 111.6 109.1 110.1 109.0 26 Consumer fuel 1.44 95.4 98.9 94.3 93.0 94.6 95.5 92.7 95.3 94.1 96.3 96.7 95.0 94.2 27 Residential utilities 1.42 124.8 120.5 120.6 122.6 124.4 130.9 122.8 122.7 125.8 127.1 121.7 125.4 Equipment 28 Business and defense equipment 18.01 163.3 161.4 162.7 163.5 164.6 165.2 165.6 165.1 165.5 166.2 167.1 167.7 168.0 168.8 29 Business equipment 14.34 157.6 154.6 156.9 158.1 159.3 160.2 160.8 160.2 161.2 162.6 163.8 164.7 165.4 166.3 30 Construction, mining, and farm 2.08 71.9 70.8 71.8 72.4 73.6 73.1 74.3 74.2 74.5 74.6 74.3 74.7 75.9 76.3 31 Manufacturing 3.27 131.3 127.7 128.3 130.3 132.4 134.0 135.8 136.2 136.2 137.0 136.3 137.6 138.1 139.2 32 Power 1.27 89.4 87.0 87.4 88.3 89.8 90.9 92.2 91.5 92.1 91.8 92.8 92.7 92.7 93.2 33 Commercial 5.22 245.2 241.5 245.7 247.1 248.2 249.8 248.7 245.4 247.0 248.9 252.4 254.1 255.9 256.1 34 Transit 2.49 114.9 112.3 115.3 115.7 115.9 115.2 116.8 120.3 122.3 124.9 125.7 125.2 123.4 126.4 35 Defense and space equipment 3.67 185.9 187.9 185.5 184.6 184.9 184.9 184.5 184.0 182.2 180.5 180.0 179.3 178.5 178.7 Intermediate products 36 Construction supplies 5.95 138.6 137.6 138.8 137.6 138.4 138.1 138.4 140.0 140.7 141.4 142.3 139.5 140.7 140.3 37 Business supplies 6.99 162.5 159.9 160.3 160.6 162.8 164.4 165.2 165.9 165.7 166.7 168.8 168.5 169.6 38 General business supplies 5.67 168.5 165.7 165.5 165.9 168.6 170.6 171.8 172.3 172.9 173.8 175.9 175.5 176.8 39 Commercial energy products 1.31 136.3 134.6 137.8 137.5 137.6 137.7 136.7 138.2 134.3 135.8 138.2 138.3 138.4 Materials 40 Durable goods materials 20.50 135.4 132.7 134.8 134.9 136.8 136.6 137.8 138.9 139.8 139.0 139.4 138.5 138.0 138.4 41 Durable consumer parts 4.92 108.9 106.2 110.0 110.3 110.1 109.8 111.0 111.4 113.9 112.5 111.7 111.6 110.1 111.0 42 Equipment parts 5.94 171.7 168.9 170.8 171.6 174.1 173.5 174.0 174.9 175.0 174.1 175.2 175.2 175.3 176.0 43 Durable materials n.e.c 9.64 126.7 124.0 125.3 124.8 127.5 127.6 129.2 130.8 131.3 130.9 131.5 129.5 129.2 129.3 44 Basic metal materials 4.64 95.9 91.6 94.8 93.7 98.4 97.3 100.3 101.1 101.4 99.8 100.8 98.5 97.3 96.9 45 Nondurable goods materials 10.09 132.0 131.1 130.1 130.1 132.8 133.1 132.6 134.7 135.1 136.3 137.1 135.9 136.7 137.5 46 Textile, paper, and chemical materials 7.53 134.4 133.3 131.9 132.1 135.3 135.7 134.9 137.4 137.9 139.1 139.9 138.7 140.0 141.1 47 Textile materials 1.52 109.9 111.9 107.5 107.5 108.5 110.1 109.2 109.5 110.1 110.0 112.1 111.1 113.6 48 Pulp and paper materials 1.55 147.3 145.8 146.4 145.4 150.3 148.3 148.1 148.4 147.2 150.3 150.4 147.6 146.4 49 Chemical materials 4.46 138.3 136.2 135.1 135.8 139.2 140.0 139.0 143.1 144.2 145.1 145.7 145.0 146.7 50 Miscellaneous nondurable materials ... 2.57 124.9 124.6 125.1 124.2 125.6 125.6 125.9 126.6 127.0 128.0 129.1 127.9 51 Energy materials 11.69 101.5 101.0 99.5 101.3 102.7 103.2 101.5 101.3 102.3 102.6 100.5 100.6 100.9 102.2 52 Primary energy 7.57 106.3 106.7 104.0 105.6 106.8 106.2 106.8 106.0 108.6 107.6 105.2 104.6 104.6 53 Converted fuel materials 4.12 92.8 90.5 91.2 93.5 95.3 97.7 91.8 92.6 90.7 93.3 92.0 93.3 94.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • July 1989 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1977 1988 1989 SIC 1988 Groups code avg. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan/ Feb. Mar.p Apr/ Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities 15.79 107.5 107.1 106.0 106.8 108.1 109.0 107.2 107.2 108.1 108.9 107.2 106.9 107.3 108.1 2 Mining 9.83 103.4 104.7 102.6 103.0 104.3 103.8 103.7 103.1 104.7 104.9 103.0 101.0 102.1 103.3 3 Utilities 5.96 114.3 111.0 111.6 113.2 114.4 117.8 113.0 113.9 113.7 115.4 114.0 116.5 115.9 116.0 4 Manufacturing 84.21 142.7 140.8 141.8 142.1 143.6 144.0 144.4 145.3 145.8 146.3 147.2 146.7 146.7 147.3 5 Nondurable 35.11 143.9 142.3 142.1 142.6 144.6 145.1 145.3 146.3 146.7 147.1 148.5 148.1 148.3 148.9 6 Durable 49.10 141.9 139.7 141.5 141.7 142.9 143.2 143.8 144.6 145.2 145.7 146.2 145.8 145.5 146.1 Mining 1 Metal 10 .50 93.2 86.9 86.0 82.2 94.0 96.6 99.1 101.6 104.6 111.9 106.9 98.5 8 Coal 11.12 1.60 137.9 136.0 127.8 126.9 141.5 137.2 142.2 138.5 149.7 155.1 144.7 134.7 137.7 141.1 9 Oil and gas extraction 13 7.07 92.9 95.5 94.6 95.8 93.3 93.2 92.0 91.5 90.8 88.9 88.9 89.7 90.1 10 Stone and earth minerals 14 .66 139.9 141.2 140.1 137.4 140.2 141.3 139.7 142.8 144.0 149.4 150.8 142.9 144.0 Nondurable manufactures 11 Foods 20 7.96 142.7 140.3 141.0 141.3 143.3 143.3 143.2 144.0 145.7 145.8 146.6 146.4 145.9 12 Tobacco products 21 .62 105.2 107.2 107.2 104.5 100.6 105.1 105.0 105.4 102.4 107.0 105.0 13 Textile mill products 22 2.29 116.2 117.3 114.6 114.3 117.1 116.4 116.2 117.0 117.2 117.9 120.2 119.2 121.3 14 Apparel products 23 2.79 109.1 109.2 108.6 109.3 109.4 108.9 109.9 109.5 110.1 108.8 110.2 110.2 15 Paper and products 26 3.15 150.3 149.2 149.5 148.6 152.3 151.0 150.9 151.8 150.7 151.7 153.8 151.6 150.1 16 Printing and publishing 27 4.54 184.2 181.8 180.7 182.3 184.9 186.7 188.0 188.1 188.5 188.0 193.0 194.5 196.4 196.0 17 Chemicals and products 28 8.05 151.9 148.9 149.1 150.5 153.4 154.8 155.3 156.7 157.5 158.1 159.0 158.1 159.5 18 Petroleum products 29 2.40 96.0 98.5 95.2 94.1 95.0 96.0 93.7 96.3 95.0 98.0 98.0 96.3 95.4 97.1 19 Rubber and plastic products 30 2.80 174.4 172.3 173.4 174.4 175.4 175.3 175.3 176.9 177.5 177.5 175.9 175.6 174.8 20 Leather and products 31 .53 59.5 58.0 57.1 58.9 59.1 59.4 59.9 61.0 61.5 60.2 62.9 63.1 62.7 Durable manufactures 21 Lumber and products 24 2.30 137.3 138.0 139.8 136.4 136.6 133.8 133.5 137.5 139.4 143.0 139.9 133.4 136.6 22 Furniture and fixtures 25 1.27 162.1 159.2 160.5 161.2 162.9 164.9 164.9 164.5 165.4 165.4 166.3 164.2 164.9 23 Clay, glass, and stone products. 32 2.72 122.6 121.4 121.5 123.4 122.2 122.6 122.6 123.3 124.7 125.1 126.6 125.3 125.8 24 Primary metals 33 5.33 89.2 85.3 89.2 87.5 91.5 90.8 93.1 94.2 92.7 90.0 93.2 91.1 89.3 88.6 25 Iron and steel 331.2 3.49 78.1 74.5 78.6 74.2 80.2 78.9 81.4 83.1 80.8 77.6 82.2 79.1 76.2 26 Fabricated metal products 34 6.46 120.9 118.8 119.8 120.4 121.7 122.1 122.5 122.6 124.6 125.1 124.5 124.5 124.2 124.4 27 Nonelectrical machinery 35 9.54 170.8 167.2 170.3 171.2 173.1 174.1 174.8 173.8 175.4 177.8 178.7 180.2 181.5 182.5 28 Electrical machinery 36 7.15 180.1 178.7 179.1 179.5 181.5 182.2 181.8 183.0 182.2 180.9 180.9 181.5 180.8 181.7 29 Transportation equipment 37 9.13 132.1 130.4 133.1 132.8 131.9 131.8 132.7 134.8 135.2 136.8 136.7 136.4 134.4 136.4 30 Motor vehicles and parts 371 5.25 117.2 114.8 119.6 119.1 116.6 117.5 118.5 121.7 122.9 125.5 124.9 123.4 119.9 122.7 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 152.4 151.5 151.5 151.4 152.7 151.3 151.9 152.7 151.9 152.2 152.7 154.0 154.1 155.0 32 Instruments 38 2.66 154.3 150.5 151.3 153.0 156.4 156.8 157.8 159.9 160.4 159.1 161.0 161.3 161.2 161.2 33 Miscellaneous manufactures 39 1.46 107.1 105.9 106.0 107.6 107.8 108.3 108.5 107.7 109.0 110.9 112.2 110.0 110.3 Utilities 34 Electric 44..1177 113322..00 112277..66 112299..77 113322..11 113344..66 113388..88 113322..22 113322..88 113311..66 113322..99 113311..00 113355..33 113344..55 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total. 517.5 1,824.5 1,812.2 1,820.1 1,813.9 1,822.3 1,828.6 1,828.9 1.853.4 1,855.5 1,875.3 1,885.1 1,878.6 1,871.9 1.886.5 36 Final 405.7 1,401.2 1,393.9 1,397.1 1,394.3 1,398.9 1,404.2 1,404.3 1.423.5 1,426.3 1,442.1 1,447.5 1,448.9 1,436.5 1.452.6 37 Consumer goods. 272.7 902.4 899.1 898.9 893.6 895.6 900.4 897.2 915.0 918.4 934.4 935.6 934.5 923.8 934.0 38 Equipment 133.0 498.8 494.7 498.3 500.7 503.2 503.8 507.1 508.4 507.9 507.7 511.9 514.4 512.7 518.5 39 Intermediate 111.9 423.3 418.4 423.0 419.6 423.4 424.3 424.5 430.0 429.3 433.2 437.7 429.7 435.3 434.0 1. These data also appear in the Board's G.12.3 (414) release. For address, see Industrial Production" and accompanying tables that contain revised indexes inside front cover. (1977= 100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 A major revision of the industrial production index and the capacity (July 1985), pp. 487-501. The revised indexes for January through June 1985 were utilization rates was released in July 1985. See "A Revision of the Index of shown in the September BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A51 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1988 1989 IItteemm 11998866 11998877 11998888 June July Aug. Sept. Oct. Nov. Dec. Jan.' Feb.' Mar. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,750 1,535 1,456' 1,485' 1,425' 1,466' 1,432' 1,526' 1,508' 1,518' 1,486 1,403 1,230 7 1-family 1,071 1,024 994' 997' 976' 1,007' 98(T 1,029' 1,027' 1,058' 1,052 989 870 3 2-or-more-family 679 511 462' 488' 449' 459' 452' 497' 481' 460' 434 414 360 4 Started 1,805 1,621 1,488 1,463 1,478 1,459 1,463 1,532 1,567 1,577 1,678 1,465 1,399 5 1-family 1,180 1,146 1,081 1,088 1,067 1,076 1,039 1,136 1,138 1,141 1,199 1,029 986 6 2-or-more-family 626 474 407 375 411 383 424 396 429 436 479 436 413 7 Under construction, end of period1 . 1,074 987 919 979 973 962 955 951 959 956 957 956 951 8 1-family 583 591 570 608 605 601 596 597 603 603 602 597 595 9 2-or-more-family 490 397 350 371 368 361 359 354 356 353 355 359 356 10 Completed 1,756 1,669 1,530 1,517 1,528 1,539 1,536 1,516 1,429 1,539 1,537 1,602 1,393 11 1-family 1,120 1,123 1,085 1,105 1,077 1,074 1,092 1,088 1,037 1,108 1,141 1,188 983 12 2-or-more-family 636 546 445 412 451 465 444 428 392 431 396 414 410 13 Mobile homes shipped 244 233 218 227 207 223 224 216 227 225 232 212 207 Merchant builder activity in 1-family units 14 Number sold 748 672 675 716 701 712 691 718 650 669' 700 624 559 15 Number for sale, end of period1 357 365 366 367 365 363 361 353 364 366 369 374 374 Price (thousands of dollars)2 Median 16 Units sold 92.2 104.7 113.3 111.5 118.0 110.0 116.6 112.9 110.4 121.0 113.0 119.0 126.0 17 Units sold 112.2 127.9 139.0 136.5 141.3 140.6 142.7 137.3 137.3 147.7' 138.6 147.0 150.5 EXISTING UNITS (1-family) 18 Number sold 3,566 3,530 3,594 3,800 3,650 3,690 3,650 3,680 3,710 3,920 3,550 3,480 3,400 Price of units sold (thousands of dollars) 19 Median 80.3 85.6 89.2 90.2 90.7 91.5 88.5 88.9 88.5 88.7 89.7 9911..99 9922..00 20 Average 98.3 106.2 112.5 115.4 114.7 115.4 112.6 112.3 112.4 112.0 113.0 117.8 116.1 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 386,093 398,848 403,122 395,714 404,164 403,172 406,906 407,697 411,517 420,999 417,953 414,821 413,538 ?? 314,651 323,819 325,110 317,708 324,658 326,763 327,164 330,735 332,279 335,641 336,504 333,339 339,441 ?3 187,147 194,772 195,280 188,071 194,215 195,393 196,945 199,971 200,601 201,738 201,441 199,630 200,744 74 Nonresidential, total 127,504 129,047 129,830 129,637 130,443 131,370 130.219 130,764 131,678 133,903 135,063 133,709 138,697 Buildings 75 Industrial 13,747 13,707 14,239 13,676 13,928 14,006 13,546 15,275 15,957 1144,,994499 1155,,778899 1144,,889922 1166,,770077 76 Commercial 56,762 55,448 55,588 56,585 56,687 56,404 55,815 54,525 53,806 55,889 57,549 58,424 59,756 77 Other 13,216 15,464 16,761 16,757 16,166 16,613 16,600 17,127 16,798 17,177 17,915 17,559 17,759 28 Public utilities and other 43,779 44,428 43,242 42,619 43,662 44,347 44,258 43,837 45,117 45,888 43,810 42,834 44,475 ?9 Public 71,437 75,028 78,011 78,007 79,506 76,409 79,742 76,963 79,238 85,358 81,449 81,482 74,097 30 Military 3,868 4,327 3,952 4,844 4,350 3,984 4,897 2,718 3,521 4,006 3,440 3,433 3,778 31 Highway 22,681 22,758 25,721 24,822 27,673 23,491 23,841 25,958 26,433 30,955 27,396 25,949 23,757 37 Conservation and development... 4,646 5,162 4,534 4,596 4,861 4,793 5,045 4,339 3,630 4,369 4,079 4,652 4,064 33 Other 40,242 42,781 43,804 43,745 42,622 44,141 45,959 43,948 45,654 46,028 46,534 47,448 42,498 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 • July 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 llleeevvveeelll 1988 1989 1988 1989 AAAppprrr 11998888 11998899 111999888999 AApprr.. AApprr.. June Sept. Dec. Mar. Dec. ' Jan. Feb. Mar. Apr. CONSUMER PRICES2 (1982-84=100) 1 All items 3.9 5.1 4.9 4.8 4.1 6.1 .3 .6 .4 .5 .7 123.1 2 Food 3.4 6.5 6.4 8.8 3.0 8.2 .3 .7 .4 .8 .5 124.2 3 Energy items 1.0 8.7 3.7 2.7 -.4 10.2 -.3 .8 .6 1.1 5.1 94.9 4 All items less food and energy 4.3 4.6 4.3 4.3 4.9 5.2 .4 .5 .4 .4 .2 128.0 5 Commodities 3.6 3.5 3.9 3.1 4.2 4.1 .3 .5 .2 .3 .2 119.6 6 Services 4.6 5.1 4.5 4.8 5.4 5.9 .5 .5 .5 .5 .2 132.9 PRODUCER PRICES (1982=100) 7 Finished goods 1.8 5.6 3.0 5.7 3.0 10.2 .4 1.0 1.0 .4 .4 113.0 8 Consumer foods 1.0 6.8 5.5 9.2 2.1 13.5 .1 1.1 1.2 .8 -.6 117.8 9 Consumer energy -1.3 12.2 -5.2 -2.7 1.4' 39.2' -.5' 5.1' 2.4 .9 7.2 68.3 10 Other consumer goods 3.2 4.7 3.5 5.9 4.4 6.1 .7 .4 .7 .4 -.1 122.8 11 Capital equipment 1.8 3.5 2.9 6.1 1.7' 4.6' .3 .5' .4 .2 -.1 117.6 12 Intermediate materials3 5.3 6.2 7.4 4.6 4.5 9.1 .6 .9 .6 .6 .4 112.3 13 Excluding energy 6.8 6.1 6.9 7.2 6.7 6.2 .5 .6 .5 .4 .0 120.7 Crude materials 14 Foods 4.3 10.2 21.3 29.1 -7.9 16.5 1.8 2.2 -1.3 3.0 -2.8 111.4 15 Energy -4.7 9.1 7.8 -27.0 12.3' 45^ 5.9' 6.9' 1.1 1.7 5.2 77.0 lb Other 23.1 5.4 -6.5 8.5 12.5' lO^ 1.2' .7' .0 2.0 -1.1 140.3 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. 1988 1989 AAccccoouunntt 11998866 11998877 11998888 Ql Q2 Q3 Q4 Qlr GROSS NATIONAL PRODUCT 1 4,240.3 4,526.7 4,864.3 4,724.5 4,823.8 4,909.0 4,999.7 5,105.0 By source 2 Personal consumption expenditures 2,807.5 3,012.1 3,227.5 3,128.1 3,194.6 3,261.2 3,326.4 33,,337777..22 3 Durable goods 406.5 421.9 451.1 437.8 449.8 452.9 464.0 459.4 4 Nondurable goods 943.6 997.9 1,046.9 1,016.2 1,036.6 1,060.8 1,073.9 1,093.0 5 Services 1,457.3 1,592.3 1,729.6 1,674.1 1,708.2 1,747.5 1,788.5 1,824.8 6 Gross private domestic investment 665.9 712.9 766.5 763.4 758.1 772.5 772.0 793.6 7 Fixed investment 650.4 673.7 718.1 698.1 714.4 722.8 737.2 750.0 8 Nonresidential 433.9 446.8 488.4 471.5 487.8 493.7 500.6 512.9 9 Structures 138.5 139.5 142.8 140.1 142.3 143.8 145.0 148.5 10 Producers' durable equipment 295.4 307.3 345.6 331.3 345.5 349.9 355.6 364.4 11 Residential structures 216.6 226.9 229.7 226.6 226.5 229.1 236.6 237.1 17. Change in business inventories 15.5 39.2 48.4 65.3 43.7 49.7 34.7 43.5 13 Nonfarm 17.4 40.7 42.2 49.4 33.1 41.9 44.6 29.3 14 Net exports of goods and services -104.4 -123.0 -94.6 -112.1 -90.4 -80.0 -96.1 -77.5 IS Exports 378.4 428.0 519.7 487.8 507.1 536.1 548.0 577.8 16 Imports 482.8 551.1 614.4 599.9 597.5 616.0 644.0 655.2 17 Government purchases of goods and services 871.2 924.7 964.9 945.2 961.6 955.3 997.5 1,011.8 18 366.2 382.0 381.0 377.7 382.2 367.7 396.3 397.8 19 State and local 505.0 542.8 583.9 567.5 579.4 587.6 601.2 613.9 By major type of product ?n Final sales, total 4,224.7 4,487.5 4,815.9 44,,665599..22 4,780.1 44,,885599..33 44,,996655..00 55,,006611..55 ?i 1,697.9 1,792.5 1,938.7 1,879.5 1,928.0 1,960.1 1,987.1 2,038.8 ?? Durable 725.3 776.3 858.3 819.3 849.5 881.6 882.7 895.0 73 Nondurable 972.6 1,016.3 1,080.4 1,060.1 1,078.5 1,078.5 1,104.4 1,143.8 74 2,118.3 2,295.7 2,478.0 2,405.2 2,451.5 2,501.6 2,553.5 2,603.1 25 Structures 424.0 438.4 447.7 439.9 444.3 447.3 459.1 463.1 26 Change in business inventories 15.5 39.2 48.4 65.3 43.7 49.7 34.7 43.5 27 Durable goods 4.3 26.6 30.9 26.6 17.8 45.1 34.1 31.7 28 Nondurable goods 11.3 12.6 17.4 38.6 25.9 4.6 0.6 11.8 MEMO 29 Total GNP in 1982 dollars 3,721.7 3,847.0 3,996.1 3,956.1 3,985.2 4,009.4 44,,003333..44 44,,007766..55 NATIONAL INCOME 30 3,437.1 3,678.7 3,968.2 3,850.8 3,928.8 4,000.7 4,093.4 4,187.1 31 Compensation of employees 2,507.1 2,683.4 2,904.7 2,816.4 2,874.0 2,933.2 2,995.3 3,060.5 3? Wages and salaries 2,094.0 2,248.4 2,436.9 2,358.7 2,410.0 2,462.0 2,516.8 2,574.3 33 Government and government enterprises 393.7 420.1 446.1 437.1 442.9 449.1 455.4 465.9 34 Other 1,700.3 1,828.3 1,990.7 1,921.6 1,967.1 2,012.9 2,061.4 2,108.4 35 Supplement to wages and salaries 413.1 435.0 467.8 457.7 464.0 471.1 478.5 486.2 36 Employer contributions for social insurance 217.0 227.1 249.6 243.1 247.5 251.7 256.0 260.8 37 Other labor income 196.1 207.9 218.3 214.6 216.5 219.5 222.5 225.4 38 Proprietors' income1 286.7 312.9 324.5 323.9 328.8 321.6 323.8 358.1 39 Business and professional 250.3 270.0 288.2 279.2 285.3 290.7 297.7 300.9 40 36.4 43.0 36.3 44.7 43.4 30.9 26.0 57.2 41 Rental income of persons2 12.4 18.4 19.3 20.5 19.1 19.7 18.1 14.0 47 Corporate profits1 298.9 310.4 328.1 316.2 326.5 330.0 340.9 319.3 43 Profits before tax3 236.4 276.7 306.4 286.2 305.9 313.9 320.6 319.9 44 Inventory valuation adjustment 8.3 -18.0 -23.8 -19.4 -27.4 -29.3 -19.2 -33.6 45 Capital consumption adjustment 54.2 51.7 45.6 49.4 48.0 45.4 39.6 33.3 46 331.9 353.6 391.5 373.9 380.6 396.2 415.4 435.3 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 • July 1989 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1988 1989 11998866 11998877 1988 Q1 Q2 Q3 Q4 Qlr PERSONAL INCOME AND SAVING 1 Total personal income 3,531.1 3,780.0 4,062.1 3,951.4 4,022.4 4,094.0 4,180.5 4,313.6 2 Wage and salary disbursements 2,094.0 2,248.4 2,436.9 2,358.7 2,410.0 2,462.0 2,516.8 2,574.3 4 3 5 6 7 G C D Se o o i M s r m v v tr e a i m i c r n b n e o u u m d f t i a i i n e v t c d n y e t u t - u p i s r a n r t i n r n o d i d g d u e u s s g t c r o i i n v e g e s rn in m d e u n s t t ri e e n s t erprises 6 4 4 5 3 7 2 9 9 7 3 5 8 3 5 . . . . . 1 5 7 9 9 6 4 6 4 5 9 4 2 4 3 0 9 0 6 1 . . . . . 3 8 7 1 8 6 5 5 7 4 2 9 7 4 1 2 5 8 6 6 . . . . . 5 4 7 1 6 6 5 6 4 5 0 7 3 8 5 9 6 7 7 8 . . . . . 6 0 1 2 4 6 5 4 5 7 8 1 4 7 0 9 7 2 2 5 . . . . . 1 4 1 9 9 7 5 4 5 7 0 2 4 8 2 1 5 9 5 5 . . . . . 3 9 1 8 8 7 5 5 7 4 3 1 9 4 5 7 5 8 7 5 . . . . . 1 4 6 4 4 7 5 6 4 7 2 4 1 6 6 7 5 1 9 5 . . . . . 4 2 9 1 9 8 Other labor income 196.1 207.9 218.3 214.6 216.5 219.5 222.5 225.4 9 Proprietors' income 286.7 312.9 324.5 323.9 328.8 321.6 323.8 358.1 10 Business and professional 250.3 270.0 288.2 279.2 285.3 290.7 297.7 300.9 11 Farm1 36.4 43.0 36.3 44.7 43.4 30.9 26.0 57.2 12 Rental income of persons 12.4 18.4 19.3 20.5 19.1 19.7 18.1 14.0 13 Dividends 82.8 88.6 96.3 93.5 95.0 97.3 99.4 102.1 14 Personal interest income 499.1 527.0 575.9 554.2 563.7 581.9 603.7 632.9 15 Transfer payments 521.1 548.8 586.0 576.3 582.8 588.6 596.4 617.0 16 Old-age survivors, disability, and health insurance benefits 269.3 282.9 301.8 298.1 300.4 303.1 305.7 317.8 17 LESS: Personal contributions for social insurance 161.1 172.0 195.1 190.2 193.5 196.7 200.1 210.2 18 EQUALS: Personal income 3,531.1 3,780.0 4,062.1 3,951.4 4,022.4 4,094.0 4,180.5 4,313.6 19 LESS: Personal tax and nontax payments 511.4 570.3 590.3 575.8 601.0 586.5 598.0 617.5 20 EQUALS: Disposable personal income 3,019.6 3,209.7 3,471.8 3,375.6 3,421.5 3,507.5 3,582.5 3,696.0 21 LESS; Personal outlays 2,898.0 3,105.5 3,327.5 3,225.7 3,293.6 3,361.8 3,428.7 3,481.5 22 EQUALS: Personal saving 121.7 104.2 144.3 149.9 127.8 145.7 153.8 214.5 MEMO Per capita (1982 dollars) 23 Gross national product 15,401.2 15,772.9 16,231.1 16,127.6 16.213.2 16,265.3 16,322.9 16,457.4 24 Personal consumption expenditures 10,160.1 10,336.2 10,528.8 10,435.4 10.492.3 10,563.1 10,628.1 10,632.2 25 Disposable personal income 10,929.0 11,012.0 11,326.0 11,260.0 11,237.0 11,362.0 11,445.0 11,638.0 26 Saving rate (percent) 4.0 3.2 4.2 4.4 3.7 4.2 4.3 5.8 GROSS SAVING 27 Gross saving 537.2 560.4 644.4 627.0 634.1 665.4 651.9 695.8 28 Gross private saving 681.6 665.3 731.6 726.3 711.2 732.9 756.7 799.2 2 3 3 9 0 1 P U C e o n r r d s p i o s o n t r r a a i l b t e s u a t i e v n d i v n e g c n o t r o p r o y ra v t a e l u p a r t o io f n it s a ' djustment 1 1 2 0 8 1 4 . . . 3 7 1 - 1 1 8 0 8 1 4 . . . 0 1 2 - 1 2 8 4 3 1 4 . . . 8 0 3 - 1 1 7 4 9 8 9 . . . 4 1 9 - 1 2 8 2 7 0 7 . . . 4 1 8 - 1 2 7 4 9 9 5 . . . 3 5 7 - 1 1 8 5 9 6 3 . . . 2 8 8 - 2 3 1 5 3 4 9 . . . 6 5 9 Capital consumption allowances 32 Corporate 282.4 297.5 315.7 309.8 313.3 316.8 323.0 328.2 33 Noncorporate 173.5 182.5 190.6 188.5 189.9 190.9 193.1 196.6 34 Government surplus, or deficit (-), national income and product accounts -144.4 -104.9 -87.3 -99.2 -77.1 -67.5 -104.8 -103.3 35 Federal -205.6 -157.8 -142.4 -155.1 -133.3 -123.5 -157.5 -158.5 36 State and local 61.2 52.9 55.1 55.8 56.2 56.0 52.6 55.2 37 Gross investment 523.6 552.3 630.3 612.0 629.0 651.4 628.7 671.9 38 Gross private domestic 665.9 712.9 766.5 763.4 758.1 772.5 772.0 793.6 39 Net foreign -142.4 -160.6 -136.2 -151.3 -129.1 -121.1 -143.3 -121.7 40 Statistical discrepancy -13.6 -8.1 -14.1 -15.0 -5.1 -14.0 -23.2 -23.9 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 11998866 11998877 11998888 Q4 QL Q2 Q3 Q4P 1 Balance on current account --113388,,882277 -153,964 --113355,,333322 -33,523 -36,998 -33,814 -32,607 -31,912 2 Not seasonally adjusted -31,802 -32,179 -34,606 -38,560 -29,986 3 Merchandise trade balance -144,547 -160,280 -126,525 -41,192 -35,187 -30,152 -29,170 -32,016 4 Merchandise exports 223,969 249,570 319,905 68,013 75,140 79,443 81,674 83,648 5 Merchandise imports -368,516 -409,850 -446,430 -109,205 -110,327 -109,595 -110,844 -115,664 6 Military transactions, net -4,372 -2,369 -4,229 -1,261 -1,033 -914 -857 -1,425 7 Investment income, net 23,143 20,374 2,602 12,539 1,128 -1,986 -1,234 4,694 8 Other service transactions, net 2,257 1,755 6,404 764 1,241 2,015 1,869 1,279 9 Remittances, pensions, and other transfers -3,571 -3,434 -3,531 -828 -908 -819 -872 -932 10 U.S. government grants (excluding military) -11,738 -10,011 -10,052 -3,545 -2,239 -1,958 -2,343 -3,512 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -2,000 1,162 3,641 1,012 -814 -801 1,990 3,266 12 Change in U.S. official reserve assets (increase, -) 312 9,149 3,566 3,741 1,503 39 -7,380 2,272 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -246 -509 474 -205 155 180 -35 173 15 Reserve position in International Monetary Fund 1,500 2,070 1,025 722 446 69 202 307 16 Foreign currencies -942 7,588 -5,064 3,225 901 -210 -7,547 1,791 17 Change in U.S. private assets abroad (increase, -) -96,303 -86,297 -92,029 -43,645 5,817 -18,295 -33,833 -45,718 18 Bank-reported claims -59,975 -40,531 -57,493 -23,460 17,108 -13,274 -27,832 -33,495 19 Nonbank-reported claims -4,220 3,145 -6,627 1,248 -315 -7,061 749 20 U.S. purchase of foreign securities, net -4,297 -4,456 -7,474 -1,757 -4,467 1,529 -1,554 -2,982 21 U.S. direct investments abroad, net -27,811 -44,455 -20,435 -19,676 -6,509 511 -5,196 -9,241 22 Change in foreign official assets in United States (increase, +) 35,507 44,968 39,012 20,047 24,670 5,946 -2,534 10,930 23 U.S. Treasury securities 34,364 43,361 41,703 19,243 27,701 5,863 -3,769 11,908 24 Other U.S. government obligations -1,214 1,570 1,351 662 -121 202 572 698 25 Other U.S. government liabilities4 2,054 -2,824 -1,278 108 -123 -570 -292 -293 26 Other U.S. liabilities reported by U.S. banks3 1,187 3,901 -269 -223 -1,954 868 1,463 -646 27 Other foreign official assets -884 -1,040 -2,495 257 -833 -417 -508 -737 28 Change in foreign private assets in United States (increase, +) 185,746 166,522 171,726 36,025 1,395 59,549 50,631 60,150 29 U.S. bank-reported liabilities'1 79,783 87,778 78,877 29,764 -17,233 31,121 29,226 35,763 30 U.S. nonbank-reported liabilities -2,906 2,150 3,778 -1,000 2,015 113 1,650 31 Foreign private purchases of U.S. Treasury securities, net 3,809 -7,596 19,886 496 6,887 5,457 3,412 4,130 32 Foreign purchases of other U.S. securities, net 70,969 42,213 26,961 -4,977 2,379 9,797 7,948 6,837 33 Foreign direct investments in United States, net 34,091 41,977 42,224 11,742 7,347 13,061 8,395 13,420 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 15,566 18,461 16,548 16,342 4,428 -12,624 23,733 1,013 36 Owing to seasonal adjustments 3,138 3,893 -3,425 -5,119 4,653 37 Statistical discrepancy in recorded data before seasonal adjustment 15,566 18,461 16,548 13,204 535 -9,199 28,852 -3,640 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) 312 9,149 -3,566 3,741 1,503 39 -7,380 2,272 39 Foreign official assets in United States (increase, +) excluding line 25 33,453 47,792 40,290 19,939 24,793 6,516 -2,242 11,223 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22 above) -9,327 -9,956 -2,909 -2,750 -1,375 -1,783 -466 715 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 101 58 86 12 45 4 7 30 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 • July 1989 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1988 1989 IItteemm 11998866 11998877 11998888'' Sept. Oct. Nov. Dec. Jan. Feb. Mar." 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 227,159 254,122 321,813 27,989 27,816 27,542 29,062 28,747 28,664 30,782 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 365,438 406,241 441,574 37,178 36,600 38,200 40,052 37,425 38,483 39,640 Trade balance 3 Customs value -138,279 -152,119 -119,760 -9,189 -8,784 -10,658 -10,991 -8,678 -9,819 -8,858 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 1989 TTyyppee 11998855 11998866 11998877 Oct. Nov. Dec. Jan. Feb. Mar. Apr. p 1 Total 43,186 48,511 45,798 50,204 48,944 47,802 48,190 49,373 49,854 50,303 2 Gold stock, including Exchange Stabilization Fund1 11,090 11,064 11,078 11,062 11,059 11,057 11,056 11,061 11,061 11,061 3 Special drawing rights2,3 7,293 8,395 10,283 9,464 9,785 9,637 9,388 9,653 9,443 9,379 4 Reserve position in International Monetary Fund 11,947 11,730 11,349 10,075 10,103 9,745 9,422 9,353 9,052 9,132 5 Foreign currencies4 12,856 17,322 13,088 19,603 17,997 17,363 18,324 19,306 20,298 20,731 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 holdings and reserve position in the IMF also are valued on this basis beginning July 1974. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 1988 1989 AAsssseettss 11998855 11998866 11998877 p Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Deposits 480 287 244 301 251 347 279 325 351 352 Assets held in custody 2 U.S. Treasury securities2 121,004 155,835 195,126 226,533 229,926 232,547 228,399 230,860 234,075 235,145 3 Earmarked gold3 14,245 14,048 13,919 13,637 13,640 13,636 13,635 13,609 13,602 13,576 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 1989 AAsssseett aaccccoouunntt 11998855 11998866 Sept. Oct. Nov. Dec. Jan. Feb. Mar. All foreign countries 1 Total, all currencies 458,012 456,628 518,618 493,302 497,514 516,360 505,790 496,509 501,438 519,522 2 Claims on United States 119,706 114,563 138,034 157,443 157,317 171,304 169,111 167,143 168,480' 177,934 3 Parent bank 87,201 83,492 105,845 117,027 117,494 130,834 129,856 127,403 128,115' 133,776 4 Other banks in United States 13,057 13,685 16,416 16,426 15,039 16,366 14,918 14,338 13,372 14,714 5 Nonbanks 19,448 17,386 15,773 23,990 24,784 24,104 24,337 25,402 26,993' 29,444 6 Claims on foreigners 315,676 312,955 342,520 299,331 302,855 307,043 299,504 291,650 296,106' 303,697 7 Other branches of parent bank 91,399 96,281 122,155 103,573 102,050 106,639 107,176 102,478 103,960' 110,433 8 Banks 102,960 105,237 108,859 98,493 102,285 100,758 96,866 93,760 95,784 97,794 9 Public borrowers 23,478 23,706 21,832 18,421r 18,234' 18,191' 17,138 16,751 16,504 16,858 10 Nonbank foreigners 97,839 87,731 89,674 78,844' 80,286' 81,455' 78,324 78,661 79,858' 78,612 11 Other assets 22,630 29,110 38,064 36,528 37,342 38,013 37,175 37,716 36,852 37,891 12 Total payable in U.S. dollars 336,520 317,487 350,107 344,201 341,132 355,652 358,027 345,506 346,971' 366,414 13 Claims on United States 116,638 110,620 132,023 151,821 151,598 165,017 163,456 160,520 161,336' 170,123 14 Parent bank 85,971 82,082 103,251 114,362 115,109 127,692 126,929 124,4% 124,288' 129,205 15 Other banks in United States 12,454 12,830 14,657 14,992 13,560 15,062 14,167 12,976 12,093 13,280 16 Nonbanks 18,213 15,708 14,115 22,467 22,929 22,263 22,360 23,048 24,955 27,638 17 Claims on foreigners 210,129 195,063 202,428 175,509 173,467 173,826 177,672 167,271 168,274' 178,113 18 Other branches of parent bank 72,727 72,197 88,284 77,724 74,949 77,384 80,736 76,221 76,563' 82,796 19 Banks 71,868 66,421 63,707 52,534 54,870 53,632 54,884 49,544 50,153 54,023 20 Public borrowers 17,260 16,708 14,730 12,941' 12,787' 12,415' 12,131 11,596 11,638 11,698 21 Nonbank foreigners 48,274 39,737 35,707 32,310' 30,861' 30,395' 29,921 29,910 29,920 29,5% 22 Other assets 9,753 11,804 15,656 16,871 16,067 16,809 16,899 17,715 17,361' 18,178 United Kingdom 23 Total, all currencies 148,599 140,917 158,695 147,329 155,580 159,556 156,835 156,529 154,879 154,856 24 Claims on United States 33,157 24,599 32,518 32,059 36,260 39,242 40,089 40,954 40,469' 40,740 25 Parent bank 26,970 19,085 27,350 26,661 30,569 33,138 34,243 34,928 34,449' 35,062 26 Other banks in United States 1,106 1,612 1,259 1,238 994 1,343 1,123 1,128 1,268 1,380 27 Nonbanks 5,081 3,902 3,909 4,160 4,697 4,761 4,723 4,898 4,752' 4,298 28 Claims on foreigners 110,217 109,508 115,700 105,813 109,743 110,336 106,388 104,668 103,884' 103,418 29 Other branches of parent bank 31,576 33,422 39,903 31,758 33,103 33,243 35,625 35,322 33,650' 35,305 30 Banks 39,250 39,468 36,735 38,848 40,236 40,875 36,765 34,907 36,159 35,357 31 Public borrowers 5,644 4,990 4,752 4,250 4,190 4,276 4,019 4,090 3,808 3,757 32 Nonbank foreigners 33,747 31,628 34,310 30,957 32,214 31,942 29,979 30,349 30,267' 28,999 33 Other assets 5,225 6,810 10,477 9,457 9,577 9,978 10,358 10,907 10,526 10,698 34 Total payable in U.S. dollars 108,626 95,028 100,574 93,790 99,868 101,341 103,503 102,873 100,863' 103,211 35 Claims on United States 32,092 23,193 30,439 30,127 34,184 36,881 38,012 38,591 37,707' 38,290 36 Parent bank 26,568 18,526 26,304 25,692 29,667 32,115 33,252 33,925 33,106' 34,067 37 Other banks in United States 1,005 1,475 1,044 910 606 849 964 678 816 937 38 Nonbanks 4,519 3,192 3,091 3,525 3,911 3,917 3,7% 3,988 3,785 3,286 39 Claims on foreigners 73,475 68,138 64,560 58,463 60,984 59,405 60,472 58,798 57,567' 59,176 40 Other branches of parent bank 26,011 26,361 28,635 24,472 25,703 25,574 28,474 27,939 26,475' 28,145 41 Banks 26,139 23,251 19,188 19,066 20,488 19,452 18,494 16,778 17,246 17,690 42 Public borrowers 3,999 3,677 3,313 3,022 2,984 2,898 2,840 2,869 2,774 2,786 43 Nonbank foreigners 17,326 14,849 13,424 11,903 11,809 11,481 10,664 11,212 11,072 10,555 44 Other assets 3,059 3,697 5,575 5,200 4,700 5,055 5,019 5,484 5,589' 5,745 Bahamas and Caymans 45 Total, all currencies 142,055 142,592 160,321 167,719 159,147 169,034 170,639 162,352 165,862 179,212 46 Claims on United States 74,864 78,048 85,318 101,587 96,287 106,240 105,320 103,016 103,989 111,958 47 Parent bank 50,553 54,575 60,048 68,348 64,249 73,654 73,409 71,065 71,100 75,261 48 Other banks in United States 11,204 11,156 14,277 14,183 12,799 14,065 13,145 12,521 11,429 12,292 49 Nonbanks 13,107 12,317 10,993 19,056 19,239 18,521 18,766 19,430 21,460 24,405 50 Claims on foreigners 63,882 60,005 70,162 59,242 56,526 56,128 58,393 52,503 54,732 59,635 51 Other branches of parent bank 19,042 17,296 21,277 21,538 18,772 18,534 17,954 15,982 18,454 20,048 52 Banks 28,192 27,476 33,751 24,682 25,636 25,549 28,268 24,755 24,514 27,747 53 Public borrowers 6,458 7,051 7,428 6,219 6,045 5,861 5,830 5,422 5,513 5,480 54 Nonbank foreigners 10,190 8,182 7,706 6,803 6,073 6,184 6,341 6,344 6,251 6,360 55 Other assets 3,309 4,539 4,841 6,890 6,334 6,666 6,926 6,833 7,141 7,619 56 Total payable in U.S. dollars 136,794 136,813 151,434 159,815 151,363 161,238 163,518 154,981 158,011 172,175 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 • July 1989 3.14—Continued 1988 1989 LLiiaabbiilliittyy aaccccoouunntt 11998855 11998866 11998877 Sept. Oct. Nov. Dec. Jan. Feb. Mar. All foreign countries 57 Total, all currencies 458,012 456,628 518,618 493,302 497,514 516,360 505,790 496,509 501,438 519,522 58 Negotiable CDs 34,607 31,629 30,929 28,953 27,969 30,734 28,511 28,538 30,013 30,768 59 To United States 156.281 152,465 161,390 167,449 163,526 174,437 185,555'" 172,035' 174,877' 185,664 60 Parent bank 84,657 83,394 87,606 96,856 97,102 106,207 114,700 102,501' 105,667 113,654 61 Other banks in United States 16,894 15,646 20,559 14,272 14,029 13,584 14,897' 13,539' 12,930' 14,617 62 Nonbanks 54,730 53,425 53,225 56,321 52,395 54,646 55,958 55,995 56,280 57,393 63 To foreigners 245,939 253,775 304,803 275,689 283,282 287,759 270,676' 273,794' 274,743' 280,818 64 Other branches of parent bank 89,529 95,146 124,601 107,640 107,532 112,310 111,262 109,116 111,577 116,284 65 Banks 76,814 77,809 87,274 79,893 82,282 82,636 72,623' 71,998' 70,355' 71,290 66 Official institutions 19,520 17,835 19,564 16,911 18,786 17,743 15,183 18,866 17,322 17,910 67 Nonbank foreigners 60,076 62,985 73,364 71,245 74,682 75,070 71,608 73,814 75,489 75,334 68 Other liabilities 21,185 18,759 21,496 21,211 22,737 23,430 21,048 22,142' 21,805 22,272 69 Total payable in U.S. dollars ... 353,712 336,406 361,438 351,557 347,019 363,425 367,075 353,661 356,578 378,435 70 Negotiable CDs 31,063 28,466 26,768 24,353 23,218 26,130 24,045 23,696 25,452 26,287 71 To United States 150,905 144,483 148,442 156,600 152,240 161,080 173,189 159,650' 161,449 173,323 72 Parent bank 81,631 79,305 81,783 90,312 90,122 97,898 107,150 94,531' 96,714 105,386 73 Other banks in United States 16,264 14,609 19,155 13,153 12,868 12,230 13,628 12,413' 11,535 13,355 74 Nonbanks 53,010 50,569 47,504 53,135 49,250 50,952 52,411 52,706 53,200 54,582 75 To foreigners 163,583 156,806 177,711 159,777 160,653 164,817 160,359 160,615 159,523 168,380 76 Other branches of parent bank 71,078 71,181 90,469 80,806 79,945 82,810 84,021 82,145 83,253 88,434 77 Banks 37,365 33,850 35,065 29,437 29,167 31,133 28,480 27,220 27,044 28,938 78 Official institutions 14,359 12,371 12,409 9,207 10,624 9,121 8,224 10,879 8,739 9,952 79 Nonbank foreigners 40,781 39,404 39,768 40,327 40,917 41,753 39,634 40,371 40,487 41,056 80 Other liabilities 8,161 6,651 8.517 10,827 10,908 11,398 9,482 9,700' 10,154 10,445 United Kingdom 81 Total, all currencies 148,599 140,917 158,695 147,329 155,580 159,556 156,835 156,529 154,879 154,856 82 Negotiable CDs 31,260 27,781 26,988 24,311 23,345 26,013 24,528 24,253 25,942 26,625 83 To United States 29,422 24,657 23,470 25,657 31,575 32,420 36,784 34,535 35,334 32,609 84 Parent bank 19,330 14,469 13,223 17,115 22,800 23,226 27,849 24,130 25,562 24,950 85 Other banks in United States 2,974 2,649 1,740 2,021 2,192 1,768 2,197 2,568 1,856 1,984 86 Nonbanks 7,118 7,539 8,507 6,521 6,583 7,426 6,738 7,837 7,916 5,675 87 To foreigners 78,525 79,498 98,689 87,212 89,934 90,404 86,026 87,519 83,833 86,011 88 Other branches of parent bank 23,389 25,036 33,078 26,837 25,743 26,268 26,812 26,815 24,553 25,929 89 Banks 28,581 30,877 34,290 31,701 32,385 33,029 30,609 29,329 28,567 29,094 90 Official institutions 9,676 6,836 11,015 8,570 10,656 9,542 7,873 10,010 8,627 9,429 91 Nonbank foreigners 16,879 16,749 20,306 20,104 21,150 21,565 20,732 21,365 22,086 21,559 92 Other liabilities 9,392 8,981 9,548 10,149 10,726 10,719 9,497 10,222 9,770 9,611 93 Total payable in U.S. dollars 112,697 99,707 102,550 96,970 101,689 102,933 105,514 104,462 103,302 105,942 94 Negotiable CDs 29,337 26,169 24,926 22,043 20,864 23,543 22,063 21,500 23,419 24,302 95 To United States 27,756 22,075 17,752 22,177 28,063 27,123 32,588 30,032 30,442 29,430 96 Parent bank 18,956 14,021 12,026 16,031 21,665 21,003 26,404 22,069 22,998 23,865 97 Other banks in United States , 2,826 2,325 1,512 1,819 1,978 1,366 1,912 2,362 1,600 1,719 98 Nonbanks 5,974 5,729 4,214 4,327 4,420 4,754 4,272 5,601 5,844 3,846 99 To foreigners 51,980 48,138 55,919 47,149 47,278 46,843 46,690 48,421 44,934 47,219 100 Other branches of parent bank 18,493 17,951 22,334 18,696 17,384 17,443 18,561 18,936 17,139 18,483 101 Banks 14,344 15,203 15,580 13,417 13,436 14,029 13,407 13,090 13,106 12,907 102 Official institutions 7,661 4,934 7,530 4,519 6,186 4,713 4,348 5,897 4,116 5,467 103 Nonbank foreigners 11,482 10,050 10,475 10,517 10,272 10,658 10,374 10,498 10,573 10,362 104 Other liabilities 3,624 3,325 3,953 5,601 5,484 5,424 4,173 .4,509 4,507 4,991 Bahamas and Caymans 105 Total, all currencies 142,055 142,592 160,321 167,719 159,147 169,034 170,639 162,352 165,862 179,212 106 Negotiable CDs 610 847 885 924 1,092 1,361 953 1,118 1,138 1,073 107 To United States 104,556 106,081 113,950 118,641 108,858 116,952 122,332' 113,562' 114,729' 124,736 108 Parent bank 45,554 49,481 53,239 58,718 53,197 59,883 62,894 56,643' 57,684 62,689 109 Other banks in United States . 12,778 11,715 17,224 11,106 10,824 10,823 11,494' 9,890' 9,743' 11,464 110 Nonbanks 46,224 44,885 43,487 48,817 44,837 46,246 47,944 47,029 47,302 50,583 111 To foreigners 35,053 34,400 43,815 45,930 46,775 48,113 45,161' 45,602' 47,534' 50,882 112 Other branches of parent bank 14,075 12,631 19,185 24,228 24,805 24,508 23,686 24,973 25,988 28,010 113 Banks 10,669 8,617 10,769 8,501 8,490 10,035 8,336' 7,179' 7,795' 8,522 114 Official institutions 1,776 2,719 1,504 1,067 972 1,060 1,074 1,337 1,379 1,234 115 Nonbank foreigners 8,533 10,433 12,357 12,134 12,508 12,510 12,065 12,113 12,372 13,116 116 Other liabilities 1,836 1,264 1,671 2,224 2,422 2,608 2,193 2,070' 2,461 2,521 117 Total payable in U.S. dollars .... 138,322 138,774 152,927 159,621 151,600 160,786 162,950 154,663 157,890 172,213 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 1989 IItteemm 11998866 11998877 Sept. Oct. Nov. Dec. Jan. Feb. Mar." 1 Total1 211,834 259,556 288,930 295,219 300,956 299,749 301,730' 304,077 307,039 By type 2 Liabilities reported by banks in the United States 27,920 31,838 32,543 34,796 35,089 31,507 36,744' 34,569 33,044 3 U.S. Treasury bills and certificates3 75,650 88,829 96,822 100,814 103,841 103,722 98,457 98,192 95,478 U.S. Treasury bonds and notes 4 Marketable 91,368 122,432 144,040 144,617 146,813 149,025 151,040' 155,338 161,843 5 Nonmarketable 1,300 300 513 516 520 523 527 531 534 6 U.S. securities other than U.S. Treasury securities 15,596 16,157 15,012 14,476 14,693 14,972 14,962 15,447 16,140 By area 7 Western Europe 88,629 124,620 121,524 125,407 128,665 125,099 126,057' 124,823 124,882 8 Canada 2,004 4,961 10,054 11,014 10,066 9,584 9,668 9,856 10,156 9 Latin America and Caribbean 8,417 8,328 10,145 9,849 10,525 10,094 9,943' 8,875 7,542 10 105,868 116,098 137.514 139,439 142,768 145,579 147,273' 152,111 156,384 11 Africa 1,503 1,402 1,130 1,094 993 1,369 1,093 1,143 1,059 12 Other countries 5,412 4,147 8,049 7,903 7,418 7,501 7,169 6,738 6,482 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 1988 IItteemm 11998855 11998866 11998877 Mar. June Sept. Dec.' 1 Banks' own liabilities 15,368 29,702 55,438 55,918 54,552 61,311 71,001 2 Banks' own claims 16,294 26,180 51,271 52,271 51,017 59,775 66,093 3 Deposits 8,437 14,129 18,861 18,406 17,660 20,769 23,831 4 Other claims 7,857 12,052 32,410 33,865 33,357 39,006 42,261 5 Claims of banks' domestic customers 580 2,507 551 810 1,004 335 364 1. Data on claims exclude foreign currencies held by U.S. monetary author- 2. Assets owned by customers of the reporting bank located in the United ities. States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • July 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 1989 Holder and type of liability 11998855 11998866 11998877 Sept. Oct. Nov. Dec. Jan/ Feb. Mar." 1 AH foreigners 435,726 540,996 618,874 657,350 651,865 678,147 685,084 661,918 678,205 690,270 2 Banks' own liabilities 341,070 406,485 470,070 491,023 482,647 503,610 513,070 493,248 507,928 523.726 3 Demand deposits 21,107 23,789 22,383 21,380 21,833 22,052 21,801 20,605 21,734 22,469 4 Time deposits 117,278 130,891 148,374 148,789 142,181 149,438 150,980 145,557 150,774 158.727 6 5 O O w th n e f r o . reign offices4 1 2 7 9 3 , , 3 38 0 1 5 20 42 9 , , 7 1 0 0 5 0 24 5 7 1 , , 6 6 3 7 5 7 26 5 7 3 , , 1 7 1 3 8 6 26 57 1 , , 0 5 4 8 6 7 27 5 8 3 , , 1 9 8 3 0 9 28 5 8 2 , , 2 0 1 7 5 4 27 5 4 2 , , 9 1 2 6 2 5 28 5 4 1 , , 0 39 2 2 9 28 5 9 3 , , 0 4 9 3 7 3 7 8 Ba U nk .S s . ' c T u r s e t a o s d u y ry l i b a i b l i l l s i t a ie n s d 5 certificates6 9 69 4 , , 1 6 3 5 3 6 1 9 3 0 4 , , 3 5 9 1 8 1 1 10 4 1 8 , , 7 8 4 0 3 4 1 10 6 8 6 , , 7 3 7 2 7 8 1 11 6 2 9 , , 2 2 6 1 7 8 1 1 7 1 4 6 , , 5 8 3 6 7 1 1 1 7 1 2 4 , , 0 9 1 7 5 6 1 11 6 1 8 , , 1 6 4 6 1 9 1 11 7 0 0 , , 9 2 9 7 2 7 1 1 6 0 6 7 , , 5 9 4 9 4 4 9 Other negotiable and readily transferable instruments 17,964 15,417 16,776 16,555 16,400 16,662 16,371 16,763 17,061 17,077 10 Other 7,558 28,696 30,285 40,995 40,551 41,015 40,668 40,765 42,224 41,473 11 Nonmonetary international and regional organizations8 5,821 5,807 4,464 7,581 6,109 4,978 3,224 2,704 3,253 3,975 12 Banks' own liabilities 2,621 3,958 2,702 4,922 4,297 3,722 2,527 1,910 2,679 3,167 13 Demand deposits 85 199 124 104 143 76 71 67 74 89 14 Time deposits 2,067 2,065 1,538 1,506 1,301 1,584 1,183 565 1,126 1,658 15 Other 469 1,693 1,040 3,311 2,853 2,062 1,272 1,278 1,479 1,421 1 1 6 7 Ba U nk .S s . ' c T u r s e t a o s d u y ry l i b a i b l i l l s i t a ie n s d 5 certificates6 3 1 , , 2 7 0 3 0 6 1,8 2 4 5 9 9 1,7 2 6 6 1 5 2,6 7 6 5 0 5 1,8 6 1 2 2 1,25 8 6 3 69 5 8 7 7 6 9 9 5 5 5 7 9 4 8 7 0 4 8 18 Other negotiable and readily transferable instruments 1,464 1,590 1,497 1,899 1,750 1,163 641 711 463 734 19 Other 0 0 0 5 0 10 0 15 52 0 20 Official institutions9 79,985 103,569 120,667 129,365 135,610 138,930 135,229 135,201 132,760 128,522 21 Banks' own liabilities 20,835 25,427 28,703 29,012 31,017 31,107 27,097 32,023 29,248 27,380 22 Demand deposits 2,077 2,267 1,757 1,755 1,780 1,583 1,915 1,627 1,792 1,607 2 2 3 4 T O i t m he e r 3 d eposits 1 7 0 , , 8 9 0 4 9 9 1 1 0 2 , , 4 6 9 6 7 3 1 1 2 4 , , 8 1 4 0 3 3 1 15 1 , , 3 8 9 6 7 0 1 17 1 , , 8 4 3 0 0 7 1 1 7 2 , , 3 1 4 7 8 6 1 9 5 , , 7 3 8 9 4 8 1 1 6 3 , , 9 4 2 7 0 6 1 14 2 , , 7 6 8 7 4 2 1 14 0 , , 8 8 9 8 2 0 2 2 5 6 Ba U nk .S s . ' T cu re st a o s d u y ry l i b a i b l i ls li t a ie n s d 5 certificates6 5 53 9 , . 2 1 5 5 2 0 7 75 8 , , 6 1 5 4 0 2 9 8 1 8 , , 9 8 6 2 5 9 1 9 0 6 0 , , 8 3 2 5 2 3 1 10 0 0 4 , , 8 5 1 9 4 3 1 10 0 3 7 , , 8 8 4 2 1 3 1 10 0 3 8 , , 7 1 2 3 2 2 1 9 0 8 3 , , 4 1 5 7 7 8 1 9 0 8 3 , , 1 5 9 1 2 2 1 9 0 5 1 , , 4 1 7 4 8 2 27 Other negotiable and readily transferable instruments 5,824 2,347 2,990 3,231 3,622 3,768 4,130 4,598 5,076 5,513 28 Other 75 145 146 300 158 214 280 124 244 152 29 Banks10 275,589 351,745 414,280 436,247 424,966 447,246 459,924 437,173 452,946 469,244 30 Banks' own liabilities 252,723 310,166 371,665 385,164 374,398 395,437 408,615 385,240 400,228 417,870 31 Unaffiliated foreign banks 79,341 101,066 124,030 118,046 112,811 117,258 120,400 110,318 116,199 128,773 32 Demand deposits 10,271 10,303 10,898 9,354 10,232 10,402 9,980 9,460 9,585 11,009 33 Time deposits 49,510 64,232 79,717 77,666 70,887 76,415 80,279 72,537 76,918 85,683 3 3 4 5 Ow O n t h f e o r r e . i gn offices4 17 1 3 9 , , 3 5 8 6 1 1 20 2 9 6 , , 1 5 0 3 0 1 24 3 7 3 , , 6 4 3 1 5 5 2 3 6 1 7 , , 0 1 2 1 6 8 2 3 6 1 1 , , 6 58 9 7 3 27 30 8 , , 4 1 4 8 2 0 28 3 8 0 , , 2 1 1 4 5 1 27 2 4 8 , ,3 9 2 2 1 2 28 2 4 9 , ,6 0 9 2 5 9 28 3 9 2 , , 0 0 9 8 7 1 3 3 6 7 Ba U nk .S s' . T cu r s e t a o s d u y r y l i b a i b l i l l s i t a ie n s d 5 certificates6 2 9 2 , , 8 8 3 6 2 6 4 9 1 , , 9 5 8 7 4 9 42 9 , , 6 1 1 3 5 4 51 7 , ,9 0 6 8 9 3 5 7 0 , , 9 56 7 9 6 5 8 1 , , 0 8 8 0 7 9 5 7 1 , , 6 3 0 0 2 9 5 7 1 , , 8 9 1 3 9 3 5 7 2 , , 4 7 9 1 1 9 51 7 , , 3 2 7 6 4 3 38 Other negotiable and readily transferable instruments 6,040 5,165 5,392 5,220 5,225 5,696 5,666 5,870 5,884 5,254 39 Other 6,994 26,431 28,089 37,893 37,367 38,025 38,041 38,243 39,344 38,857 40 Other foreigners 74,331 79,875 79,463 84,158 85,179 86,992 86,707 86,840 89,246 88,529 41 Banks' own liabilities 64,892 66,934 67,000 71,925 72,935 73,343 74,832 74,076 75,773 75,309 42 Demand deposits 8,673 11,019 9,604 10,167 9,678 9,991 9,835 9,452 10,282 9,764 4 4 4 3 O Ti t m he e r 3 d eposits" 54 1 , , 7 4 5 6 2 7 54 1 , , 0 8 9 1 7 8 5 3 4 , ,2 1 7 1 7 9 5 4 7 , , 0 7 0 5 1 7 5 4 8 , , 6 5 7 8 1 6 5 4 9 , , 0 2 8 6 8 4 5 5 9 , , 2 7 6 3 3 4 5 5 8 , , 6 9 4 7 5 9 6 5 0 , , 4 0 3 5 3 8 6 5 0 , , 0 5 3 0 9 5 4 4 5 6 Ba U nk .S s . ' T cu re st a o s d u y ry l i b a i b ll i s li t a ie n s d 5 certificates6 9 4, , 3 4 1 3 4 9 1 4 2 , , 5 9 0 4 6 1 1 3 2 , , 5 4 1 6 5 3 1 3 2 , , 2 2 3 3 1 3 1 3 2 , , 4 2 1 4 5 4 1 4 3 , , 8 6 4 5 9 0 1 3 1 , , 5 8 9 7 5 6 1 4 2 , , 7 7 9 6 7 4 1 5 3 , , 2 4 5 7 0 3 1 5 3 , , 1 2 8 2 0 0 47 Other negotiable and readily transferable instruments 4,636 6,315 6,898 6,205 5,803 6,035 5,933 5,584 5,638 5,575 48 Other 489 2,120 2,050 2,797 3,026 2,766 2,347 2,383 2,585 2,465 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 9,845 7,496 7,314 6,394 6,117 6,128 6,366 6,296 6,064 5,881 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 1989 AArreeaa aanndd ccoouunnttrryy 11998855 11998866 11998877 Sept. Oct. Nov. Dec. Jan.r Feb. Mar/ 1 Total 435,726 540,996 618,874 657,350 651,865 678,147 685,084 661,918 678,205 690,270 2 Foreign countries 429,905 535,189 614,411 649,769 645,755 673,169 681,860 659,213 674,952 686,294 3 Europe 164,114 180,556 234,641 224,827 227,258 233,958 236,243 223,965 228,565 232,006 4 Austria 693 1,181 920 1,072 1,271 1,599 1,155 1,129 1,777 1,448 5 Belgium-Luxembourg 5,243 6,729 9,347 9,937 10,247 11,117 10,043 9,006 10,529 9,315 6 Denmark 513 482 760 1,402 2,362 3,089 2,180 1,833 2,082 1,639 7 Finland 496 580 377 447 339 339 284 375 560 527 8 France 15,541 22,862 29,835 24,295 23,259 24,564 24,758 22,263 24,264 26,839 9 Germany 4,835 5,762 7,022 5,085 5,898 7,981 6,781 5,794 5,263 5,477 10 Greece 666 700 689 633 675 683 672 919 933 759 11 Italy 9,667 10,875 12,073 8,550 12,512 13,337 14,610 11,322 11,073 13,480 12 Netherlands 4,212 5,600 5,014 6,166 6,377 5,939 5,311 5,248 6,011 5,595 13 Norway 948 735 1,362 1,060 1,143 1,342 1,559 1,502 1,367 1,547 14 Portugal 652 699 801 858 915 738 903 870 813 831 15 Spain 2,114 2,407 2,621 6,248 6,838 5,976 5,490 5,750 5,169 4,900 16 Sweden 1,422 884 1,379 2,196 1,579 1,815 1,270 1,299 1,319 1,441 17 Switzerland 29,020 30,534 33,766 31,360 31,325 31,919 34,224 32,564 31,658 30,330 18 Turkey 429 454 703 706 876 793 1,012 939 1,246 1,023 19 United Kingdom 76,728 85,334 116,852 113,304 109,976 111,747 116,103 110,894 113,576 115,525 20 Yugoslavia 673 630 710 579 655 569 529 489 434 440 21 Other Western Europe 9,635 3,326 9,798 10,325 10,245 9,627 8,633 10,917 9,929 10,076 22 U.S.S.R 105 80 32 45 100 74 138 155 109 102 23 Other Eastern Europe 523 702 582 558 667 711 589 697 454 711 24 Canada 17,427 26,345 30,095 28,241 26,697 26,188 21,029 19,267 20,732 23,961 25 Latin America and Caribbean 167,856 210,318 220,372 246,796 240,109 257,330 267,147 259,423 263,503 265,232 26 Argentina 6,032 4,757 5,006 7,106 7,065 7,307 7,749 7,628 6,836 6,411 27 Bahamas 57,657 73,619 74,767 77,921 76,844 83,725 86,590 82,009 83,455 87,214 28 Bermuda 2,765 2,922 2,344 2,389 2,577 2,752 2,621 2,381 2,545 2,578 29 Brazil 5,373 4,325 4,005 4,475 4,726 5,137 5,268 4,675 4,829 4,929 30 British West Indies 42,674 72,263 81,494 101,813 95,869 105,016 110,626 108,343 111,179 110,033 31 Chile 2,049 2,054 2,210 2,467 2,727 2,653 2,917 2,969 2,975 3,063 32 Colombia 3,104 4,285 4,204 4,171 4,136 4,221 4,317 4,300 4,453 4,138 33 Cuba 11 7 12 9 12 9 10 10 10 10 34 Ecuador 1,239 1,236 1,082 1,244 1,265 1,360 1,356 1,365 1,402 1,412 35 Guatemala 1,071 1,123 1,082 1,177 1,150 1,178 1,186 1,236 1,259 1,267 36 Jamaica 122 136 160 166 177 164 186 180 170 231 37 Mexico 14,060 13,745 14,480 15,843 15,636 15,457 15,093 15,277 14,866 14,595 38 Netherlands Antilles 4,875 4,970 4,975 5,253 5,354 5,907 6,705 6,083 5,641 5,666 39 Panama 7,514 6,886 7,414 4,128 4,117 4,046 4,206 4,284 4,496 4,361 40 Peru 1,167 1,163 1,275 1,584 1,605 1,650 1,626 1,716 1,728 1,696 41 Uruguay 1,552 1,537 1,582 1,884 1,788 1,887 1,895 2,011 2,142 2,225 42 Venezuela 11,922 10,171 9,048 9,752 9,547 9,301 9,095 9,159 9,532 9,354 43 Other 4,668 5,119 5,234 5,411 5,512 5,560 5,702 5,800 5,986 6,049 44 72,280 108,831 121,288 139,763 141,940 145,768 147,293 146,559 151,489 155,061 China 45 Mainland 1,607 1,476 1,162 1,608 1,479 1,401 1,892 1,566 1,602 1,590 46 Taiwan 7,786 18,902 21,503 22,338 23,380 24,747 26,057 26,178 26,001 26,142 47 Hong Kong 8,067 9,393 10,180 10,875 11,532 12,437 11,727 10,941 11,677 10,776 48 India 712 674 582 1,008 778 761 695 689 828 897 49 Indonesia 1,466 1,547 1,404 1,121 1,286 995 1,189 1,189 1,198 1,611 50 Israel 1,601 1,892 1,292 1,130 2,323 1,063 1,471 1,216 1,365 1,300 51 Japan 23,077 47,410 54,322 70,068 70,478 73,100 73,989 75,391 77,417 82,936 57 Korea 1,665 1,141 1,637 2,091 2,440 2,681 2,541 2,454 2,502 2,890 53 Philippines 1,140 1,866 1,085 976 1,146 1,155 1,163 976 1,014 977 54 Thailand 1,358 1,119 1,345 1,369 1,363 1,205 1,236 1,373 1,615 1,217 55 Middle-East oil-exporting countries3 14,523 12,352 13,988 14,124 13,232 12,871 12,053 12,262 12,289 11,971 56 Other 9,276 11,058 12,788 13,053 12,503 13,352 13,281 12,323 13,980 12,755 57 Africa 4,883 4,021 3,945 3,659 3,702 3,530 3,974 3,688 3,791 3,713 58 Egypt 1,363 706 1,151 813 850 757 912 771 819 756 59 Morocco 163 92 194 111 66 64 68 90 69 60 60 South Africa 388 270 202 247 245 267 437 250 212 226 61 Zaire 163 74 67 71 71 72 71 74 75 77 62 Oil-exporting countries 1,494 1,519 1,014 1,015 993 952 1,017 1,024 1,121 1,062 63 Other 1,312 1,360 1,316 1,402 1,477 1,418 1,470 1,479 1,494 1,534 64 Other countries 3,347 5,118 4,070 6,484 6,049 6,396 6,173 6,312 6,872 6,322 65 Australia 2,779 4,196 3,327 5,639 5,199 5,426 5,303 5,485 6,037 5,490 66 All other 568 922 744 845 849 970 870 827 836 832 67 Nonmonetary international and regional organizations 5,821 5,807 4,464 7,581 6,109 4,978 3,224 2,704 3,253 3,975 68 International 4,806 4,620 2,830 5,538 4,142 3,491 2,503 1,725 2,106 2,726 69 Latin American regional 894 1,033 1,272 1,762 1,662 1,276 589 747 732 1,026 70 Other regional 121 154 362 281 306 211 133 232 415 223 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 • July 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 1989 AArreeaa aanndd ccoouunnttrryy 11998855 11998866 11998877 Sept. Oct. Nov. Dec. Jan. Feb. Mar.p 1 Total 401,608 444,745 459,877 477,023 465,538 485,973 490,183 481,408r 494,893 505,626 2 Foreign countries 400,577 441,724 456,472 471,437 462,434 481,192 488,177 478,954r 493,205 503,875 3 Europe 106,413 107,823 102,348 102,382 105,859 108,273 117,000 107,506' 113,844 116,509 4 Austria 598 728 793 808 812 721 485 544 646 892 5 Belgium-Luxembourg 5,772 7,498 9,397 9,038 8,902 8,954 8,573 8,356 7,926 7,785 6 Denmark 706 688 717 579 631 599 480 410 790 547 7 Finland 823 987 1,010 1,194 912 1,157 1,065 911r 1,114 909 8 France 9,124 11,356 13,548 12,149 12,327 12,478 13,242 13,315 14,920 15,727 9 Germany 1,267 1,816 2,039 1,713 2,317 2,307 2,327 2,398r 1,695 3,107 10 Greece 991 648 462 505 493 601 433 448 517 584 11 Italy 8,848 9,043 7,460 6,095 6,022 7,100 7,946 5,526 5,581 5,866 12 Netherlands 1,258 3,296 2,619 3,197 2,666 2,763 2,547 2,514 2,475 2,806 13 Norway 706 672 934 510 534 478 455 472 601 432 14 Portugal 1,058 739 477 329 261 253 374 339 331 367 15 Spain 1,908 1,492 1,853 1,963 1,800 2,054 1,823 2,182 2,153 2,134 16 Sweden 2,219 1,964 2,254 1,983 1,852 2,083 1,977 2,619 2,622 2,643 17 Switzerland 3,171 3,352 2,718 2,559 2,918 2,983 3,895 3,5ir 3,799 3,797 18 Turkey 1,200 1,543 1,680 1,3% 1,344 1,265 1,233 1,152 1,108 1,039 19 United Kingdom 62,566 58,335 50,823 54,724 57,924 58,095 65,594 58,037' 62,409 63,075 20 Yugoslavia 1,964 1,835 1,700 1,476 1,472 1,450 1,390 1,371 1,348 1,455 21 Other Western Europe" 998 539 619 856 1,120 916 1,152 1,275 1,560 1,262 22 U.S.S.R 130 345 389 503 754 1,218 1,255 1,286 1,403 1,298 23 Other Eastern Europe3 1,107 948 852 805 798 799 755 839 846 785 24 Canada 16,482 21,006 25,368 23,776 22,482 23,285 18,988 16,731' 18,915 19,559 25 Latin America and Caribbean 202,674 208,825 214,789 212,862 201,047 211,079 213,272 210,294' 210,463 221,718 26 Argentina 11,462 12,091 11,996 12,235 12,077 12,023 11,804 11,880 11,801 11,635 27 Bahamas 58,258 59,342 64,587 64,281 59,345 67,238 67,003 68,874' 69,517 71,712 28 Bermuda 499 418 471 676 596 511 483 475 535 1,265 29 Brazil 25,283 25,716 25,897 25,622 25,461 26,399 25,735 25,835' 25,480 26,156 30 British West Indies 38,881 46,284 50,042 55,201 48,859 50,650 54,739 50,358' 50,504 58,010 31 Chile 6,603 6,558 6,308 5,656 5,459 5,319 5,401 5,156' 5,139 5,345 32 Colombia 3,249 2,821 2,740 3,023 3,016 2,978 22,,993388 22,,886677 22,,880055 22,,774411 33 Cuba 0 0 1 0 0 0 11 11 11 11 34 Ecuador 2,390 2,439 2,286 2,185 2,168 2,162 2,075 2,048r 2,026 2,037 35 Guatemala4 194 140 144 150 175 167 198 185 188 198 36 Jamaica4 224 198 188 187 201 205 211 214 202 211 37 Mexico 31,799 30,698 29,532 25,971 25,645 25,386 24,636 24,445' 24,386 24,494 38 Netherlands Antilles 1,340 1,041 980 1,158 1,491 1,427 1,309 1,222' 1,150 1,005 39 Panama 6,645 5,436 4,744 2,176 2,214 2,350 2,506 2,535 2,534 2,455 40 Peru 1,947 1,661 1,329 1,063 1,065 1,012 1,012 11,,001111 952 947 41 Uruguay 960 940 963 891 850 888 910 888800 856 879 42 Venezuela 10,871 11,108 10,843 10,754 10,803 10,736 10,732 10,748' 10,910 10,803 43 Other Latin America and Caribbean 2,067 1,936 1,738 1,633 1,623 1,626 1,580 1,560 1,475 1,825 44 Asia 66,212 96,126 106,0% 124,809 112244,,668866 113300,,228822 113300,,778866 113355,,777799'' 114411,,118855 113377,,440000 China Mainland 639 787 %8 824 756 777 762 830 881 992 46 Taiwan 1,535 2,681 4,592 3,182 3,040 3,845 4,184 3,902' 3,960 4,168 47 Hong Kong 6,797 8,307 8,218 8,419 9,500 10,831 10,134 8,739' 8,016 7,836 48 India 450 321 510 533 627 568 560 645 628 564 49 Indonesia 698 723 580 773 808 767 730 669 735 649 50 Israel 1,991 1,634 1,363 1,184 1,174 1,231 1,137 1,097' 1,044 1,068 51 Japan 31,249 59,674 68,658 87,200 87,276 89,520 90,137 99,032' 104,842 100,780 52 Korea 9,226 7,182 5,148 5,137 5,187 5,390 5,219 4,961 4,891 5,173 53 Philippines 2,224 2,217 2,071 2,009 1,912 1,900 1,876 1,847 1,900 1,910 54 Thailand 845 578 496 759 766 778 850 887 931 986 55 Middle East oil-exporting countries 4,298 4,122 4,858 6,401 5,388 6,657 6,110 5,341 5,839 6,384 56 Other Asia 6,260 7,901 8,635 8,389 8,253 8,018 9,087 7,829 7,519 6,890 57 Africa 5,407 4,650 4,742 5,454 5,633 5,629 5,720 5,924' 6,072 5,965 58 Egypt 721 567 521 535 540 532 509 495' 567 543 59 Morocco 575 598 542 478 476 488 511 524 532 541 60 South Africa 1,942 1,550 1,507 1,693 1,707 1,698 1,681 1,688 1,718 1,695 61 Zaire 20 28 15 16 17 18 17 16 16 42 62 Oil-exporting countries6 630 694 1,003 1,388 1,483 1,491 1,523 1,534 1,522 1,480 63 Other 1,520 1,213 1,153 1,343 1,410 1,402 1,479 1,666 1,717 1,666 64 Other countries 3,390 3,294 3,129 2,154 2,728 2,645 2,410 2,720 2,726 2,724 65 Australia 2,413 1,949 2,100 1,389 1,879 1,586 1,517 1,711 1,686 1,689 66 All other 978 1,345 1,029 765 849 1,059 894 1,009 1,040 1,034 67 Nonmonetary international and regional organizations 1,030 3,021 3,404 5,586 3,104 4,781 2,006 2,454' 1,688 1,751 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 1989 TTyyppee ooff ccllaaiimm 11998855 11998866 11998877 Sept. Oct. Nov. Dec. Jan.r Feb. Mar/ 1 Total 444444433333330000000,,,,,,,444444488888889999999 444444477777778888888,,,,,,,666666655555550000000 444444499999997777777,,,,,,,666666633333335555555 555555511111112222222,,,,,,,888888800000004444444 555555533333337777777,,,,,,,333333388888880000000 550055,,662266 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444400000001111111,,,,,,,666666600000008888888 444444444444444444444,,,,,,,777777744444445555555 444444455555559999999,,,,,,,888888877777777777777 444444477777777777777,,,,,,,000000022222223333333 465,538 485,973 444444499999990000000,,,,,,,111111188888883333333 481,408 494,893 550055,,662266 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666660000000,,,,,,,555555500000007777777 66666664444444,,,,,,,000000099999995555555 66666664444444,,,,,,,666666600000005555555 66666665555555,,,,,,,000000077777772222222 61,940 64,949 66666661111111,,,,,,,777777766666668888888 63,670 62,824 6622,,223300 44 OOwwnn ffoorreeiiggnn ooffffiicceess 111111177777774444444,,,,,,,222222266666661111111 222222211111111111111,,,,,,,555555533333333333333 222222222222224444444,,,,,,,777777722222227777777 222222244444445555555,,,,,,,444444477777773333333 237,455 255,005 222222255555556666666,,,,,,,555555511111115555555 256,726 263,797 227722,,447711 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111111111116666666,,,,,,,666666655555554444444 111111122222222222222,,,,,,,999999944444446666666 111111122222227777777,,,,,,,666666600000009999999 111111122222224444444,,,,,,,555555566666660000000 122,071 123,299 111111122222229999999,,,,,,,555555544444442222222 119,009 125,491 112299,,995577 66 DDeeppoossiittss 44444448888888,,,,,,,333333377777772222222 55555557777777,,,,,,,444444488888884444444 66666660000000,,,,,,,666666688888887777777 66666661111111,,,,,,,222222299999995555555 54,372 55,980 66666665555555,,,,,,,999999999999991111111 58,605 63,077 6666,,441144 77 OOtthheerr 66666668888888,,,,,,,222222288888882222222 66666665555555,,,,,,,444444466666662222222 66666666666666,,,,,,,999999922222222222222 66666663333333,,,,,,,222222266666665555555 67,699 67,318 66666663333333,,,,,,,555555555555552222222 60,404 62,414 6633,,554433 88 AAllll ootthheerr ffoorreeiiggnneerrss 55555550000000,,,,,,,111111188888885555555 44444446666666,,,,,,,111111177777771111111 44444442222222,,,,,,,999999933333336666666 44444441111111,,,,,,,999999911111118888888 44,072 42,720 44444442222222,,,,,,,333333355555559999999 42,003 42,780 4400,,996688 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 22222228888888,,,,,,,888888888888881111111 33333333333333,,,,,,,999999900000005555555 33333337777777,,,,,,,777777755555558888888 33333335555555,,,,,,,777777788888881111111 44444447777777,,,,,,,111111199999996666666 3333333,,,,,,,333333333333335555555 4444444,,,,,,,444444411111113333333 3333333,,,,,,,666666699999992222222 5555555,,,,,,,333333399999991111111 8888888,,,,,,,222222288888889999999 11 Negotiable and readily transferable 11111119999999,,,,,,,333333333333332222222 22222224444444,,,,,,,000000044444444444444 22222226666666,,,,,,,666666699999996666666 22222220000000,,,,,,,888888899999996666666 22222225555555,,,,,,,333333377777772222222 12 Outstanding collections and other 6666666,,,,,,,222222211111114444444 5555555,,,,,,,444444444444448888888 7777777,,,,,,,333333377777770000000 9999999,,,,,,,444444499999994444444 11111113333333,,,,,,,555555533333335555555 13 MEMO: Customer liability on 22222228888888,,,,,,,444444488888887777777 22222225555555,,,,,,,777777700000006666666 22222223333333,,,,,,,111111100000007777777 11111118888888,,,,,,,666666677777777777777 11111119999999,,,,,,,444444488888884444444 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States .... 38,102 43,984 40,587 43,182 42,362 49,297 43,023r 45.044 47,625 n.a. 1. Data for banks' own claims are given on a monthly basis, but the data for parent foreign bank. claims of banks' own domestic customers are available on a quarterly basis only. 3. Assets owned by customers of the reporting bank located in the United Reporting banks include all kinds of depository institutions besides commercial States that represent claims on foreigners held by reporting banks for the account banks, as well as some brokers and dealers. of their domestic customers. 2. U.S. banks: includes amounts due from own foreign branches and foreign 4. Principally negotiable time certificates of deposit and bankers acceptances. subsidiaries consolidated in "Consolidated Report of Condition" tiled 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, and foreign branches, agencies, or wholly owned subsidiaries of head office or 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 1988 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998855 11998866 11998877 Mar. June Sept. Dec. 1 Total 227,903 232,295 235,130 219,609 228,348 230,356 233,043r By borrower 2 Maturity of 1 year or less2 160,824 160,555 163,997 152,967 163,819 167,861 172,447'" 3 Foreign public borrowers 26,302 24,842 25,889 26,257 27,520 29,361 26,382 4 All other foreigners 134,522 135,714 138,108 126,710 136,299 138,499 146,064' 5 Maturity over 1 year 67,078 71,740 71,133 66,642 64,530 62,495 60,597 6 Foreign public borrowers 34,512 39,103 38,625 35,763 35,598 34,985 34,827' 7 All other foreigners 32,567 32,637 32,507 30,878 28,932 27,510 25,770' By area Maturity of 1 year or less 8 Europe 56,585 61,784 59,027 51,694 55,986 54,243 56,025' 9 Canada 6,401 5,895 5,680 4,989 6,664 6,410 6,275 10 Latin America and Caribbean 63,328 56,271 56,535 55,429 56,166 55,532 57,866 11 Asia 27,966 29,457 35,919 35,523 38,997 42,340 46,119' 12 Africa 3,753 2,882 2,833 2,5% 2,914 3,120 3,338 13 All other3 2,791 4,267 4,003 2,736 3,092 6,216 2,824 Maturity of over 1 year2 14 Europe 7,634 6,737 6,696 5,885 5,337 5,327 4,736 15 Canada 1,805 1,925 2,661 2,213 2,344 2,062 1,929 16 Latin America and Caribbean 50,674 56,719 53,817 51,544 49,762 48,260 47,484 17 Asia 4,502 4,043 3,830 3,681 3,645 3,954 3,646 Africa 1,538 1,539 1,747 2,201 2,433 2,257 2,301 19 All other3 926 777 2,381 1,117 1,008 635 501 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 • July 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 1988 Area or country 1984 LLQ^OFIJ< Dec. Mar. June Sept. Dec. Mar. June Sept. Dec. 1 Total 405.7 385.4 385.1 395.4 384.6 387.7 381.4 370.0 350.5 353.7 348.8 2 G-10 countries and Switzerland 148.1 146.0 156.6 162.7 158.1 155.2 160.0 157.2 151.2 149.5 154.5 3 Belgium-Luxembourg 8.7 9.2 8.3 9.1 8.3 8.2 10.1 9.3 9.2 9.5 9.0 4 France 14.1 12.1 13.7 13.3 12.5 13.7 13.8 11.5 10.8 10.0 10.7 5 Germany 9.0 10.5 11.6 12.7 11.2 10.5 12.6 11.8 10.6 8.9 9.9 6 Italy 10.1 9.6 9.0 8.7 7.5 6.6 7.3 7.4 6.1 5.9 6.4 7 Netherlands 3.9 3.7 4.6 4.4 7.3 4.8 4.1 3.3 3.3 3.0 2.8 8 Sweden 3.2 2.7 2.4 3.0 2.4 2.6 2.1 2.1 1.9 2.0 2.0 9 Switzerland 3.9 4.4 5.8 5.8 5.7 5.4 5.6 5.1 5.6 5.2 5.7 10 United Kingdom 60.3 63.0 71.0 73.7 72.0 72.1 69.1 71.7 70.5 68.1 66.7 11 Canada 7.9 6.8 5.3 5.3 4.7 4.7 5.5 4.9 5.4 5.2 5.5 12 Japan 27.1 23.9 24.9 26.9 26.3 26.5 29.8 30.0 27.9 31.7 35.9 13 Other developed countries 33.6 29.9 25.7 25.7 25.2 25.9 26.2 26.2 23.7 22.7 20.9 14 Austria 1.6 1.5 1.7 1.9 1.8 1.9 1.9 1.6 1.6 1.6 1.6 15 Denmark 2.2 2.3 1.7 1.7 1.5 1.6 1.7 1.4 1.0 1.1 .9 16 Finland 1.9 1.6 1.4 1.4 1.4 1.4 1.3 1.0 1.2 1.3 1.2 17 Greece 2.9 2.6 2.3 2.1 2.0 1.9 2.0 2.3 2.2 2.1 1.9 18 Norway 3.0 2.9 2.4 2.2 2.1 2.0 2.3 2.0 2.0 2.0 1.8 19 Portugal 1.4 1.2 .8 .9 .8 .8 .5 .4 .4 .4 .5 20 Spain \ 6.5 5.8 5.8 6.3 6.1 7.4 8.0 9.0 7.2 6.3 6.2 21 Turkey 1.9 1.8 1.8 1.7 1.7 1.5 1.6 1.6 1.5 1.3 1.3 22 Other Western Europe 1.7 2.0 1.4 1.4 1.5 1.6 1.6 1.9 1.6 1.9 1.3 23 South Africa 4.5 3.2 3.0 3.0 3.0 2.9 2.9 2.8 2.8 2.7 2.4 24 Australia 6.0 5.0 3.5 3.2 3.1 2.9 2.4 2.1 2.2 1.8 1.8 25 OPEC countries3 24.9 21.3 19.3 20.0 18.8 19.0 17.1 17.2 16.4 17.6 16.5 26 Ecuador 2.2 2.1 2.2 2.1 2.1 2.1 1.9 1.9 1.8 1.8 1.7 27 Venezuela 9.3 8.9 8.6 8.5 8.4 8.3 8.1 8.0 8.0 7.9 7.9 28 Indonesia 3.3 3.0 2.5 2.4 2.2 2.0 1.9 1.9 1.9 1.9 1.9 29 Middle East countries 7.9 5.3 4.3 5.4 4.4 5.0 3.6 3.6 3.1 4.3 3.2 30 African countries 2.3 2.0 1.7 1.6 1.7 1.7 1.7 1.7 1.7 1.7 1.7 31 Non-OPEC developing countries 111.8 104.2 99.1 100.7 100.4 97.7 97.6 94.3 91.3 87.0 85.5 Latin America 32 Argentina 8.7 8.8 9.5 9.5 9.5 9.3 9.4 9.5 9.4 9.2 8.9 33 Brazil 26.3 25.4 25.2 26.2 25.1 25.1 24.7 23.9 23.7 22.4 22.5 34 Chile 7.0 6.9 7.1 7.3 7.2 7.0 6.9 6.6 6.4 6.2 5.7 35 Colombia 2.9 2.6 2.1 2.0 1.9 1.9 2.0 1.9 2.1 2.1 2.0 36 Mexico 25.7 23.9 23.8 24.1 25.3 24.8 23.7 22.5 21.1 20.6 19.0 37 Peru 2.2 1.8 1.4 1.4 1.3 1.2 1.1 1.1 .9 .8 .8 38 Other Latin America 3.9 3.4 3.1 3.0 2.9 2.8 2.7 2.8 2.6 2.5 2.6 Asia China 39 Mainland .7 .5 .4 .9 .6 .3 .3 .4 .3 .2 .3 40 Taiwan 5.1 4.5 4.9 5.5 6.6 6.0 8.2 6.1 4.9 3.2 3.6 41 India .9 1.2 1.2 1.8 1.7 1.9 1.9 2.1 2.3 2.0 2.1 42 Israel 1.8 1.6 1.5 1.4 1.3 1.3 1.0 1.0 1.0 1.0 1.2 43 Korea (South) 10.6 9.2 6.6 6.2 5.6 4.9 4.9 5.6 5.9 6.0 6.1 44 Malaysia 2.7 2.4 2.1 1.9 1.7 1.6 1.5 1.5 1.5 1.6 1.6 45 Philippines 6.0 5.7 5.4 5.4 5.4 5.4 5.1 5.1 4.9 4.5 4.5 46 Thailand 1.8 1.4 .9 .9 .8 .7 .7 1.0 1.1 1.2 1.1 47 Other Asia 1.1 1.0 .7 .6 .7 .7 .7 .7 .8 .8 .9 Africa 48 Egypt 1.2 1.0 .7 .6 .6 .6 .5 .5 .6 .5 .4 49 Morocco .8 .9 .9 .9 .9 .8 .9 .9 .9 .8 .9 5 5 1 0 O Za th ir e e r Africa4 2. . 1 1 1 . . 1 9 1 . . 1 6 1 . . 1 4 1 . . 1 3 1 . . 1 3 1 . . 0 3 1 . . 1 2 1 . . 1 2 1 . . 0 2 1 . . 0 1 52 Eastern Europe 4.4 4.1 3.2 3.0 3.3 3.3 3.0 2.9 3.1 3.0 3.7 53 U.S.S.R .1 .1 .1 .1 .3 .5 .4 .3 .4 .4 .7 54 Yugoslavia 2.3 2.2 1.7 1.6 1.7 1.7 1.6 1.7 1.7 1.7 1.8 55 Other 2.0 1.8 1.4 1.3 1.3 1.2 1.0 .9 1.0 1.0 1.2 56 Offshore banking centers 65.6 62.9 61.3 63.1 60.7 64.3 54.3 50.8 42.4 46.5 45.5 57 Bahamas 21.5 21.2 22.0 23.9 19.9 25.5 17.1 15.1 8.6 12.5 11.5 58 Bermuda .9 .7 .7 .8 .6 .6 .6 .8 1.0 .9 .8 59 Cayman Islands and other British West Indies 11.8 11.6 12.4 12.2 14.0 12.8 13.3 11.7 10.0 11.5 13.1 60 Netherlands Antilles 3.4 2.2 1.8 1.7 1.3 1.2 1.2 1.3 1.2 1.2 1.0 61 Panama 6.7 6.0 4.0 4.3 3.9 3.7 3.7 3.3 3.0 2.7 2.6 62 Lebanon 1 1 1 1 J 6 6 6 4 5 3 S O H i t o n h n g e g a r p s K 6 o r o e n g 1 9 L . . 8 4 0 1 9 L . . 8 4 0 1 9 L . . 2 1 0 1 8 L . . 6 4 0 1 8 2. . . 3 5 0 1 8 2. . . 1 3 0 1 7 L . . 2 0 0 1 7 L . . 4 3 0 1 6 L . . 7 8 0 1 7 0^ . . 0 0 6 1 6 0^ . . 2 0 2 66 Miscellaneous and unallocated7 17.3 16.9 19.8 20.1 18.1 22.3 23.2 21.5 22.3 27.0 21.8 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 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998844 11998855 11998866 Dec. Mar. June Sept. Dec. 1 Total 29,357 27,825 25,587 27,889 29,416 29,564 31,560 33,481 2 Payable in dollars 26,389 24,296 21,749 22,504 23,869 24,319 26,391 28,319 3 Payable in foreign currencies 2,968 3,529 3,838 5,385 5,547 5,244 5,168 5,162 By type 4 Financial liabilities 14,509 13,600 12,133 11,882 13,635 13,219 14,076 14,727 5 Payable in dollars 12,553 11,257 9,609 8,358 10,000 9,746 10,719 11,319 6 Payable in foreign currencies 1,955 2,343 2,524 3,525 3,635 3,473 3,357 3,408 7 Commercial liabilities 14,849 14,225 13,454 16,006 15,780 16,345 17,484 18,754 8 Trade payables 7,005 6,685 6,450 7,433 6,581 6,899 6,610 6,751 9 Advance receipts and other liabilities 7,843 7,540 7,004 8,573 9,199 9,445 10,874 12,003 10 Payable in dollars 13,836 13,039 12,140 14,146 13,869 14,573 15,673 17,000 11 Payable in foreign currencies 1,013 1,186 1,314 1,860 1,912 1,771 1,811 1,754 By area or country Financial liabilities 12 Europe 6,728 7,700 7,917 8,078 9,411 8,890 10,092 10,099 13 Belgium-Luxembourg 471 349 270 202 241 269 326 387 14 France 995 857 661 364 390 353 354 326 15 Germany 489 376 368 583 585 625 709 746 16 Netherlands 590 861 542 884 1,008 880 1,014 897 17 Switzerland 569 610 646 493 777 706 797 1,232 18 United Kingdom 3,297 4,305 5,140 5,358 6,228 5,885 6,722 6,300 19 Canada 863 839 399 360 394 403 391 639 20 Latin America and Caribbean 5,086 3,184 1,944 889 1,177 1,188 801 1,121 21 Bahamas 1,926 1,123 614 293 264 225 213 191 22 Bermuda 13 4 4 0 0 0 0 0 23 Brazil 35 29 32 25 0 0 0 0 24 British West Indies 2,103 1,843 1,146 503 849 919 581 525 25 Mexico 367 15 22 13 15 26 2 1 26 Venezuela 137 3 0 0 2 0 0 0 27 Asia 1,777 1,815 1,805 2,452 2,573 2,662 2,785 2,816 28 Japan 1,209 1,198 1,398 2,042 2,112 2,066 2,1% 2,135 29 Middle East oil-exporting countries 155 82 8 8 11 11 4 3 30 Africa 14 12 1 4 5 2 3 1 31 Oil-exporting countries3 0 0 1 1 3 1 1 0 32 Allother4 41 50 67 100 75 74 3 50 Commercial liabilities 33 Europe 4,001 4,074 4,446 5,616 5,738 5,844 6,845 7,731 34 Belgium-Luxembourg 48 62 101 134 156 150 208 171 35 France 438 453 352 451 441 436 470 480 36 Germany 622 607 715 916 818 799 1,204 1,690 37 Netherlands 245 364 424 428 463 514 653 568 38 Switzerland 257 379 385 559 527 482 486 594 39 United Kingdom 1,095 976 1,341 1,657 1,798 1,848 2,186 2,115 40 Canada 1,975 1,449 1,405 1,301 1,392 1,167 1,109 1,200 41 Latin America and Caribbean 1,871 1,088 924 865 976 1,032 999 1,026 42 Bahamas 7 12 32 19 15 58 20 45 43 Bermuda 114 77 156 168 325 272 222 184 44 Brazil 124 58 61 46 59 54 58 91 45 British West Indies 32 44 49 19 14 28 30 31 46 Mexico 586 430 217 189 164 233 178 179 47 Venezuela 636 212 216 162 122 140 204 176 48 Asia 5,285 6,046 5,080 6,573 5,888 6,285 6,653 6,905 49 Japan 1,256 1,799 2,042 2,580 2,510 2,661 2,769 3,095 50 Middle East oil-exporting countries ' 2,372 2,829 1,679 1,964 1,062 1,320 1,312 1,386 51 Africa 588 587 619 574 575 626 465 564 52 Oil-exporting countries 233 238 197 135 139 115 106 201 53 All other4 1,128 982 980 1,078 1,211 1,391 1,414 1,327 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 • July 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 Dec. Mar. June Sept. Dec. 1 Total 29,901 28,876 36,265 31,086 31,154 37,599 37,345 32,778 2 Payable in dollars 27,304 26,574 33,867 28,514 28,997 35,421 34,660 30,623 3 Payable in foreign currencies 2,597 2,302 2,399 2,572 2,157 2,178 2,686 2,154 By type 4 Financial claims 19,254 18,891 26,273 20,440 20,368 26,194 26,336 21,016 5 Deposits 14,621 15,526 19,916 14,923 13,056 19,858 19,574 14,209 6 Payable in dollars 14,202 14,911 19,331 13,706 12,402 19,009 18,358 13,273 7 Payable in foreign currencies 420 615 585 1,217 653 849 1,216 936 8 Other financial claims 4,633 3,364 6,357 5,517 7,312 6,336 6,762 6,807 9 Payable in dollars 3,190 2,330 5,005 4,703 6,192 5,440 5,863 6,111 10 Payable in foreign currencies 1,442 1,035 1,352 814 1,120 895 899 696 11 Commercial claims 10,646 9,986 9,992 10,647 10,786 11,405 11,010 11,762 12 Trade receivables 9,177 8,696 8,783 9,581 9,673 10,370 10,025 10,687 13 Advance payments and other claims 1,470 1,290 1,209 1,065 1,113 1,036 985 1,075 14 Payable in dollars 9,912 9,333 9,530 10,105 10,403 10,971 10,439 11,239 15 Payable in foreign currencies 735 652 462 541 383 434 571 523 By area or country Financial claims 16 Europe 5,762 6,929 10,744 9,581 10,116 11,754 10,934 10,320 1/ Belgium-Luxembourg 15 10 41 7 15 16 49 11 18 France 126 184 138 335 335 185 212 252 19 Germany 224 223 116 105 97 170 113 129 20 Netherlands 66 161 151 351 336 337 364 350 21 Switzerland 66 74 185 84 54 82 84 91 22 United Kingdom 4,864 6,007 9,855 8,472 9,062 10,642 9,543 9,118 23 Canada 3,988 3,260 4,808 2,851 2,696 2,960 3,545 2,571 24 Latin America and Caribbean 8,216 7,846 9,291 6,983 6,607 10,951 11,166 7,050 25 Bahamas 3,306 2,698 2,628 1,998 2,371 4,164 4,109 1,726 26 Bermuda 6 6 6 7 43 126 188 19 2/ Brazil 100 78 86 63 86 46 44 47 28 British West Indies 4,043 4,571 6,078 4,399 3,574 6,111 6,359 4,764 29 Mexico 215 180 174 172 154 147 133 151 30 Venezuela 125 48 21 19 35 28 27 22 31 Asia 961 731 1,317 888 874 422 570 796 32 Japan 353 475 999 607 707 187 385 605 33 Middle East oil-exporting countries2 13 4 7 10 7 6 6 6 34 Africa 210 103 85 65 53 60 % 106 35 Oil-exporting countries3 85 29 28 7 7 10 9 10 36 All other4 117 21 28 72 23 47 26 173 Commercial claims 37 Europe 3,801 3,533 3,725 4,209 4,201 4,725 4,281 4,970 38 Belgium-Luxembourg 165 175 133 179 194 159 172 175 39 France 440 426 431 652 554 686 535 672 40 Germany 374 346 444 562 637 773 605 606 41 Netherlands 335 284 164 135 151 173 146 265 42 Switzerland 271 284 217 185 172 262 183 317 43 United Kingdom 1,063 898 999 1,097 1,084 1,121 1,197 1,227 44 Canada 1,021 1,023 934 931 1,155 927 933 932 45 Latin America and Caribbean 2,052 1,753 1,857 1,944 1,927 2,080 2,104 2,146 46 Bahamas 8 13 28 19 14 13 12 31 4/ Bermuda 115 93 193 170 171 174 161 156 48 Brazil 214 206 234 226 209 232 233 295 49 British West Indies 7 6 39 26 24 25 22 20 50 Mexico 583 510 412 368 374 412 463 460 51 Venezuela 206 157 237 296 274 318 266 226 52 Asia 3,073 2,982 2,755 2,919 2,857 2,994 2,994 2,952 53 Japan 1,191 1,016 881 1,160 1,109 1,169 957 935 54 Middle East oil-exporting countries2 668 638 563 450 408 446 411 441 55 Africa 470 437 500 401 419 425 425 434 56 Oil-exporting countries 134 130 139 144 126 136 137 122 57 All other4 229 257 222 241 227 254 273 329 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 1989 1988 1989 Transactions, and area or country 1987 1988 J M an ar .- . Sept. Oct. Nov. Dec. Jan. Feb. Mar. " U.S. corporate securities STOCKS 1 Foreign purchases 249,122 181,048 46,114 11,971 13,232 11,973 11,224 11,923 18,378 15,813 2 Foreign sales 232,849 183,039 45,725 12,565 14,852 11,861 12,467 11,789 18,494 15,442 3 Net purchases, or sales (-) 16,272 -1,991 389 -594 -1,620 112 -1,243 134 -116 371 4 Foreign countries 16,321 -1,816 590 -567 -1,507 89 -1,198 167 -86 508 5 Europe 1,932 -3,353 -154 -625 -128 -901 -771 -99 -126 71 6 France 905 -281 266 -38 89 -49 -64 38 159 70 7 Germany -70 218 148 -19 107 -20 -53 30 59 59 8 Netherlands 892 -535 69 -56 17 -30 -1 128 -64 4 9 Switzerland -1,123 -2,242 -1,434 -506 -217 -268 -273 -345 -1,181 91 10 United Kingdom 631 -954 767 241 -41 -579 -424 74 800 -107 11 Canada 1,048 1,087 89 44 -116 576 274 320 -361 130 12 Latin America and Caribbean 1,318 1,249 1,806 310 374 98 -21 599 571 636 13 Middle East1 -1,360 -2,473 385 -191 -846 151 -132 -100 265 220 14 Other Asia 12,896 1,365 -1,684 -128 -693 138 -567 -603 -544 -536 15 Japan 11,365 1,922 -1,508 23 -626 133 -407 -563 -487 -458 16 Africa 123 188 40 5 5 21 -1 29 4 7 17 Other countries 365 121 108 19 -102 6 19 21 106 -19 18 Nonmonetary international and regional organizations -48 -176 -201 -28 -112 23 -45 -33 -30 -137 BONDS2 19 Foreign purchases 105,856 86,362 25,944 7,450 7,552 7,650 8,423 6,137 9,610 10,197 20 Foreign sales 78,312 58,301 16,368 5,583 4,674 4,795 4,441 4,593 4,729 7,046 21 Net purchases, or sales (—) 27,544 28,062 9,577 1,866 2,878 2,856 3,982 1,544 4,880 3,152 22 Foreign countries 26,804 28,608 9,550 1,802 3,002 2,825 3,978 1,524 4,914 3,111 23 Europe 21,989 17,338 5,272 1,107 2,341 1,240 2,560 663 2,062 2,547 24 France 194 143 91 90 45 13 -130 107 47 -63 25 Germany 33 1,344 202 160 34 -122 75 15 38 148 26 Netherlands 269 1,514 79 415 545 171 17 30 -21 69 27 Switzerland 1,587 513 265 97 175 -13 273 130 131 4 28 United Kingdom 19,770 13,088 4,442 289 1,339 1,141 2,468 313 1,751 2,378 29 Canada 1,296 711 522 -155 20 5 178 180 129 213 30 Latin America and Caribbean 2,857 1,930 1,181 45 198 58 240 229 651 301 31 Middle East1 -1,314 -174 119 -14 -45 143 159 -128 160 87 32 Other Asia 2,021 8,900 2,395 916 485 1,353 840 552 1,893 -50 33 Japan 1,622 7,686 1,674 575 381 1,210 746 392 1,567 -285 34 Africa 16 -8 10 1 4 -1 0 3 2 5 35 Other countries -61 -89 50 -98 -1 26 2 24 18 8 36 Nonmonetary international and regional organizations 740 -547 27 64 -124 31 3 20 -34 41 Foreign securities 37 Stocks, net purchases, or sales (-) 1,081 -1,850 -1,662 -79 -126 -222 -1,102 -891 -629 -142 38 Foreign purchases 95,458 74,792 24,403 5,054 6,070 7,625 7,472 6,856 8,070 9,477 39 Foreign sales 94,377 76,642 26,065 5,133 6,1% 7,846 8,573 7,748 8,698 9,619 40 Bonds, net purchases, or sales (—) -7,946 -10,170 -1,374 -510 -3,407 433 -1,720 -247 -486 -641 41 Foreign purchases 199,089 216,461 56,939 25,271 20,525 20,873 20,510 14,835 18,709 23,395 42 Foreign sales 207,035 226,631 58,313 25,781 23,932 20,440 22,230 15,083 19,195 24,036 43 Net purchases, or sales (—), of stocks and bonds .... -6,865 -12,020 -3,037 -589 -3,533 211 -2,822 -1,139 -1,114 -783 44 Foreign countries -6,757 -12,496 -3,283 -570 -3,582 175 -2,916 -1,115 -1,192 -976 45 Europe -12,101 -10,319 -2,265 -450 -2,881 -476 -1,543 -80 -797 1,388 46 Canada -4,072 -3,799 -1,492 -730 -273 392 -658 -378 -530 -584 47 Latin America and Caribbean 828 1,386 306 271 -120 23 -32 68 77 161 48 Asia 9,299 856 -19 189 112 166 -189 -872 -34 886 49 Africa 89 -54 -18 28 -189 18 -33 6 -9 -16 50 Other countries -800 -567 204 121 -230 52 -461 139 100 -36 51 Nonmonetary international and regional organizations -108 476 247 -19 49 36 94 -23 78 192 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 • July 1989 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1989 1988 1989 Country or area 1987 1988 Jan.- Sept. Oct. Nov. Dec. Jan/ Feb. Mar." Mar. Transactions, net purchases or sales (-) during period1 1 Estimated total2 25,587 48,770 20,412 -1,934 2,193 8,582 337 2,826 8,922 8,664 2 Foreign countries2 30,889 48,084 20,405 -2,256 -244 8,247 2,348 2,038 10,046 8,320 3 Europe2 23,716 14,260 8,294 -1,233 -175 1,719 304 2,191 3,905 2,198 4 Belgium-Luxembourg 653 923 129 -333 -3 133 -90 10 137 -18 5 Germany 13,330 -5,348 711 -720 277 -1,015 -406 931 -39 -181 6 Netherlands -913 -356 646 -58 41 135 -114 268 135 243 7 Sweden 210 -323 -326 -121 -162 355 118 -115 297 -508 8 Switzerland2 1,917 -1,074 2,484 -1,355 87 -411 -18 271 437 1,776 9 United Kingdom 3,975 9,667 2,631 2,023 -1,019 1,945 -231 -320 1,601 1,350 10 Other Western Europe 4,563 10,781 2,019 -663 615 577 1,059 1,145 1,337 -463 11 Eastern Europe -19 -10 0 -7 -10 -2 -15 0 0 0 12 Canada 4,526 3,761 -44 -167 633 -368 788 43 12 -98 13 Latin America and Caribbean -2,192 703 554 272 -574 582 -104 -95 529 120 14 Venezuela 150 -109 -89 -17 1 0 0 -37 1 -53 15 Other Latin America and Caribbean -1,142 1,120 237 288 -331 506 140 -154 252 139 16 Netherlands Antilles -1,200 -308 406 1 -244 77 -244 96 276 34 17 Asia 4,488 27,585 12,205 -1,351 -107 6,870 1,011 577 5,964 5,663 18 Japan 868 21,752 4,467 -2,841 220 4,224 -157 115 2,505 1,847 19 Africa -56 -13 12 31 0 -8 -7 -1 15 -2 20 All other 407 1,786 -617 193 -21 -548 358 -676 -379 439 21 Nonmonetary international and regional organizations -5,300 689 6 322 2,438 335 -2,011 788 -1,125 343 22 International -4,387 1,142 128 294 2,365 489 -2,019 777 -1,072 424 23 Latin America regional 3 -31 -18 0 0 10 10 0 -10 -8 Memo 24 Foreign countries 30,889 48,084 20,405 -2,256 -244 8,247 2,348 2,038 10,046 8,320 25 Official institutions 31,064 26,593 12,818 -1,481 577 2,196 2,212 2,014 4,299 6,505 26 Other foreign2 -181 21,489 7,587 -776 -821 6,050 136 24 5,748 1,815 Oil-exporting countries 27 Middle East* -3,142 1,943 6,280 -182 -1,023 2,121 1,080 121 3,568 2,591 28 Africa4 16 1 0 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 May 31, 1989 Rate on May 31, 1989 Rate on May 31, 1989 CCoouunnttrryy CCoouunnttrryy CCoouunnttrryy Percent Month Percent Month Percent Month effective effective effective 555555......000000 AAAAAApppppprrrrrr...... 111111999999888888999999 888888......222222555555 JJJJJJaaaaaannnnnn...... 111111999999888888999999 888...000 JJJuuunnneee 111999888333 888888......777777555555 AAAAAApppppprrrrrr...... 111111999999888888999999 GGeerrmmaannyy,, FFeedd.. RReepp.. ooff...... 444444......555555 AAAAAApppppprrrrrr...... 111111999999888888999999 444...555 AAAppprrr... 111999888999 Brazil 444444999999......000000 MMMMMMaaaaaarrrrrr...... 111111999999888888111111 IIttaallyy 111111333333......555555 MMMMMMaaaaaarrrrrr...... 111111999999888888999999 111111222222......444444000000 MMMMMMaaaaaayyyyyy 111111999999888888999999 333333......222222555555 MMMMMMaaaaaayyyyyy 111111999999888888999999 888...000 OOOcccttt... 111999888555 777777......555555 AAAAAApppppprrrrrr...... 111111999999888888333333 555555......555555 AAAAAApppppprrrrrr...... 111111999999888888999999 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 corndiscounts 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 1989 CCoouunnttrryy,, oorr ttyyppee 11998866 11998877 11998888 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Eurodollars 6.70 7.07 7.86 8.91 9.30 9.28 9.61 10.18 10.01 9.66 2 United Kingdom 10.87 9.65 10.28 12.23 13.07 13.06 12.97 13.00 13.09 13.08 3 Canada 9.18 8.38 9.63 10.86 11.15 11.34 11.69 12.22 12.58 12.44 4 Germany 4.58 3.97 4.28 4.91 5.32 5.63 6.36 6.57 6.42 6.96 5 Switzerland 4.19 3.67 2.94 4.10 4.77 5.31 5.69 5.75 6.05 7.26 6 Netherlands 5.56 5.24 4.72 5.30 5.60 5.99 6.75 6.88 6.70 7.30 7 France 7.68 8.14 7.80 8.03 8.36 8.55 9.11 9.07 8.61 8.81 8 Italy 12.60 11.15 11.04 11.48 11.96 11.84 12.26 12.88 12.21 12.27 9 Belgium 8.04 7.01 6.69 7.18 7.38 7.59 8.04 8.28 8.17 8.45 10 Japan 4.96 3.87 3.96 4.22 4.16 4.24 4.21 4.21 4.20 4.25 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 • July 1989 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1988 1989 Country/currency 1986 Jan. Feb. Mar. Apr. 1 Australia/dollar^ 67.093 70.136 78.408 85.73 87.05 85.64 81.69 80.35 2 Austria/schilling 15.260 12.649 12.357 12.359 12.904 13.022 13.148 13.161 3 Belgium/franc 44.662 37.357 36.783 36.815 38.441 38.792 39.136 39.148 4 Canada/dollar 1.38% 1.3259 1.2306 1.1962 1.1913 1.1891 1.1954 1.1888 5 China, P.R./yuan 3.4615 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 6 Denmark/krone 8.0954 6.8477 6.7411 6.7891 7.1143 7.2094 7.2912 7.2803 7 Finland/markka 5.0721 4.4036 4.1933 4.1408 4.2553 4.3006 4.2994 4.1961 8 France/franc 6.9256 6.0121 5.9594 5.9994 6.2538 6.3004 6.3321 6.3223 9 Germany/deutsche mark 2.1704 1.7981 1.7569 1.7563 1.8356 1.8505 1.8686 1.8697 10 Greece/drachma 139.93 135.47 142.00 146.10 152.25 154.72 157.34 159.23 11 Hong Kong/dollar 7.8037 7.7985 7.8071 7.8062 7.8047 7.8009 7.7%9 7.7828 12 India/rupee 12.597 12.943 13.899 15.019 15.092 15.240 15.467 15.718 13 Ireland/punt2 134.14 148.79 152.49 152.29 145.82 144.10 142.84 142.67 14 Italy/lira 1491.16 1297.03 1302.39 1295.61 1345.12 1355.28 1372.50 1371.80 15 Japan/yen 168.35 144.60 128.17 123.61 127.36 127.74 130.55 132.04 16 Malay sia/ringgit 2.5830 2.5185 2.6189 2.6935 2.7221 2.7307 2.7535 2.7211 17 Netherlands/guilder 2.4484 2.0263 1.9778 1.9824 2.0723 2.0895 2.1085 2.1098 18 New Zealand/dollar2 ... 52.456 59.327 65.558 63.621 62.412 61.629 61.547 61.167 19 Norway/krone 7.3984 6.7408 6.5242 6.5234 6.6808 6.7254 6.8059 6.7964 20 Portugal/escudo 149.80 141.20 144.26 145.56 150.74 152.10 154.05 154.54 21 Singapore/dollar 2.1782 2.1059 2.0132 1.9442 1.9404 1.9285 1.9407 1.9497 22 South Africa/rand 2.2918 2.0385 2.1900 2.3487 2.3847 2.4570 2.5393 2.5480 23 South Korea/won 884.61 825.93 734.51 687.89 685.28 680.28 675.68 672.10 24 Spain/peseta 140.04 123.54 116.52 113.73 114.78 115.67 116.40 116.146 25 Sri Lanka/rupee 27.933 29.471 31.847 33.016 33.132 33.115 33.416 34.021 26 Sweden/krona 7.1272 6.3468 6.1369 6.0888 6.2725 6.3238 6.3933 6.3689 27 Switzerland/franc 1.7979 1.4918 1.4642 1.4799 1.5619 1.5740 1.6110 1.6469 28 Taiwan/dollar 37.837 31.756 28.636 28.199 27.821 27.716 27.591 26.998 29 Thailand/baht 26.314 25.774 25.312 25.146 25.322 25.386 25.542 25.524 30 United Kingdom/pound 146.77 163.98 178.13 182.58 177.37 175.34 171.34 170.08 MEMO 31 United States/dollar3 ... 112.22 %.94 92.72 91.8 95.12 95.77 %.99 97.24 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 June 1989 A101 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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 commercial banks, March 31, 1988 June 1989 A72 Assets and liabilities of commercial banks, June 30, 1988 June 1989 A78 Terms of lending at commercial banks, May 1988 September 1988 A70 Terms of lending at commercial banks, August 1988 January 1989 All Terms of lending at commercial banks, November 1988 April 1989 A72 Terms of lending at commercial banks, February 1989 June 1989 A84 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 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1988 May 1989 All Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1988 June 1989 A90 Pro forma balance sheet and income statements for priced service operations, June 30, 1987 November 1987 A74 Pro forma balance sheet and income statements for priced service operations, September 30, 1987 February 1988 A80 Pro forma balance sheet and income statements for priced service operations, March 31, 1988 ... August 1988 A70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Board of Governors ALAN GREENSPAN, Chairman MARTHA R. SEGER MANUEL H. JOHNSON, Vice Chairman WAYNE D. ANGELL OFFICE OF BOARD MEMBERS SIDNEY M. Suss AN, Assistant Director LAURA M. HOMER, Securities Credit Officer JOSEPH R. COYNE, Assistant to the Board DONALD J. WINN, Assistant to the Board BOB STAHLY MOORE, Special Assistant to the Board DIVISION OF INTERNATIONAL FINANCE EDWIN M. TRUMAN, Staff Director LEGAL DIVISION LARRY J. PROMISEL, Senior Associate Director CHARLES J. SLEGMAN, Senior Associate Director J. VIRGIL MATTINGLY, JR., General Counsel DAVID H. HOWARD, Deputy Associate Director RICHARD M. ASHTON, Associate General Counsel ROBERT F. GEMMILL, Staff Adviser OLIVER IRELAND, Associate General Counsel DONALD B. ADAMS, Assistant Director RLCKI R. TLGERT, Associate General Counsel PETER HOOPER III, Assistant Director SCOTT G. ALVAREZ, Assistant General Counsel KAREN H. JOHNSON, Assistant Director MARYELLEN A. BROWN, Assistant to the General RALPH W. SMITH, JR., Assistant Director DIVISION OF RESEARCH AND STATISTICS OFFICE OF THE SECRETARY MICHAEL J. PRELL, Director WILLIAM W. WILES, Secretary EDWARD C. ETTIN, Deputy Director JENNIFER J. JOHNSON, Associate Secretary THOMAS D. SIMPSON, Associate Director BARBARA R. LOWREY, Associate Secretary LAWRENCE SLIFMAN, Associate Director MARTHA BETHEA, Deputy Associate Director PETER A. TINSLEY, Deputy Associate Director DIVISION OF CONSUMER MYRON L. KWAST, Assistant Director AND COMMUNITY AFFAIRS SUSAN J. LEPPER, Assistant Director PATRICK M. PARKINSON, Assistant Director GRIFFITH L. GARWOOD, Director MARTHA S. SCANLON, Assistant Director GLENN E. LONEY, Assistant Director DAVID J. STOCKTON, Assistant Director ELLEN MALAND, Assistant Director JOYCE K. ZLCKLER, Assistant Director DOLORES S. SMITH, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) DIVISION OF BANKING SUPERVISION AND REGULATION DIVISION OF MONETARY AFFAIRS WILLIAM TAYLOR, Staff Director DONALD L. KOHN, Director DON E. KLINE, Associate Director DAVID E. LLNDSEY, Deputy Director FREDERICK M. STRUBLE, Associate Director BRIAN F. MADIGAN, Assistant Director WILLIAM A. RYBACK, Deputy Associate Director RICHARD D. PORTER, Assistant Director STEPHEN C. SCHEMERING, Deputy Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board RICHARD SPILLENKOTHEN, Deputy Associate Director HERBERT A. BIERN, Assistant Director JOE M. CLEAVER, Assistant Director OFFICE OF THE INSPECTOR GENERAL ROGER T. COLE, Assistant Director JAMES I. GARNER, Assistant Director BRENT L. BOWEN, Inspector General JAMES D. GOETZINGER, Assistant Director BARRY R. SNYDER, Assistant Inspector General MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 and Official Staff H. ROBERT HELLER JOHN P. LA WARE EDWARD W. KELLEY, JR. OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES S. DAVID FROST, Staff Director THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director PORTIA W. THOMPSON, Equal Employment Opportunity Programs Officer DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF HUMAN RESOURCES MANAGEMENT CLYDE H. FARNSWORTH, JR., Director DAVID L. ROBINSON, Associate Director DAVID L. SHANNON, Director C. WILLIAM SCHLEICHER, JR., Associate Director JOHN R. WEIS, Associate Director BRUCE J. SUMMERS, Associate Director ANTHONY V. DLGLOIA, Assistant Director CHARLES W. BENNETT, Assistant Director JOSEPH H. HAYES, JR., Assistant Director JACK DENNIS, JR., Assistant Director FRED HOROWITZ, Assistant Director EARL G. HAMILTON, Assistant Director JOHN H. PARRISH, Assistant Director OFFICE OF THE CONTROLLER LOUISE L. ROSEMAN, Assistant Director FLORENCE M. YOUNG, Assistant Director 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

74 Federal Reserve Bulletin • July 1989 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL MANUEL H. JOHNSON JOHN P. LAWARE ROGER GUFFEY SILAS KEEHN THOMAS C. MELZER H. ROBERT HELLER EDWARD W. KELLEY, JR. MARTHA R. SEGER RICHARD F. SYRON ALTERNATE MEMBERS EDWARD G. BOEHNE W. LEE HOSKINS JAMES H. OLTMAN ROBERT H. BOYKIN GARY H. STERN STAFF DONALD L. KOHN, Secretary and Economist THOMAS E. DAVIS, Associate Economist NORMAND R.V. BERNARD, Assistant Secretary DAVID E. LINDSEY, Associate Economist GARY P. GLLLUM, Deputy Assistant Secretary ALICIA H. MUNNELL, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel LARRY J. PROMISEL, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel KARL A. SCHELD, Associate Economist MICHAEL J. PRELL, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist THOMAS D. SIMPSON, Associate Economist ANATOL B. BALBACH, Associate Economist LAWRENCE SLIFMAN, Associate Economist RICHARD G. DAVIS, 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 DONALD N. BRANDIN, President SAMUEL A. MCCULLOUGH, 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, 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

A75 and Advisory Councils CONSUMER ADVISORY COUNCIL JUDITH N. BROWN, Edina, Minnesota, Chairman WILLIAM E. ODOM, Dearborn, Michigan, Vice Chairman NAOMI G. ALBANESE, Greensboro, North Carolina ROBERT A. HESS, Washington, D.C. GEORGE H. BRAASCH, Chicago, Illinois RAMON E. JOHNSON, Salt Lake City, Utah BETTY TOM CHU, Arcadia, California BARBARA KAUFMAN, San Francisco, California CLIFF E. COOK, Tacoma, Washington A. J. (JACK) KING, Kalispell, Montana JERRY D. CRAFT, Atlanta, Georgia MICHELLE S. MEIER, Washington, D.C. DONALD C. DAY, Boston, Massachusetts RICHARD L. D. MORSE, Manhattan, Kansas R.B.(JOE) DEAN, JR., Columbia, South Carolina LINDA K. PAGE, Columbus, Ohio RICHARD B. DOBY, Denver, Colorado SANDRA PHILLIPS, Pittsburgh, Pennsylvania WILLIAM C. DUNKELBERG, Philadelphia, Pennsylvania VINCENT P. QUAYLE, Baltimore, Maryland RICHARD H. FINK, Washington, D.C. CLIFFORD N. ROSENTHAL, New York, New York JAMES FLETCHER, Chicago, Illinois ALAN M. SPURGIN, New York, New York STEPHEN GARDNER, Dallas, Texas RALPH E. SPURGIN, Columbus, Ohio ELENA G. HANGGI, Little Rock, Arkansas DAVID P. WARD, Peapack, New Jersey JAMES HEAD, Berkeley, California LAWRENCE WINTHROP, Portland, Oregon THRIFT INSTITUTIONS ADVISORY COUNCIL GERALD M. CZARNECKI, Honolulu, Hawaii, President DONALD B. SHACKELFORD, Columbus, Ohio, Vice President CHARLOTTE CHAMBERLAIN, Glendale, California JOE C. MORRIS, Overland Park, Kansas ROBERT S. DUNCAN, Hattiesburg, Mississippi JOSEPH W. MOSMILLER, Baltimore, Maryland ADAM A. JAHNS, Chicago, Illinois LOUIS H. PEPPER, Seattle, Washington H. C. KLEIN, Jacksonville, Arkansas MARION O. SANDLER, Oakland, California PHILIP E. LAMB, Springfield, Massachusetts CHARLES B. STUZIN, Miami, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SER- Federal Reserve Regulatory Service, $250.00 per year. VICES, MS-138, Board of Governors of the Federal Reserve Each Handbook, $90.00 per year. System, Washington, D.C. 20551 or telephone (202) 452- THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A 3244. When a charge is indicated, payment should accom- MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 pany request and be made payable to the Board of Governors each. of the Federal Reserve System. Payment from foreign resi- WELCOME TO THE FEDERAL RESERVE. MARCH 1989. 14 PP. dents should be drawn on a U.S. bank. PROCESSING AN APPLICATION THROUGH THE FEDERAL RE- SERVE SYSTEM. August 1985. 30 pp. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 440 pp. $9.00 each. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. TIONS. 1984. 120 pp. December 1986. 264 pp. $10.00 each. ANNUAL REPORT. ANNUAL REPORT: BUDGET REVIEW, 1988-89. FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 each in the United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $3.00 each. CONSUMER EDUCATION PAMPHLETS BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint Short pamphlets suitable for classroom use. Multiple copies of Part I only) 1976. 682 pp. $5.00. are available without charge. ANNUAL STATISTICAL DIGEST 1974-78. 1980. 305 pp. $10.00 per copy. 1981. 1982. 239 pp. $ 6.50 per copy. Consumer Handbook on Adjustable Rate Mortgages 1982. 1983. 266 pp. $ 7.50 per copy. Consumer Handbook to Credit Protection Laws 1983. 1984. 264 pp. $11.50 per copy. Federal Reserve Glossary 1984. 1985. 254 pp. $12.50 per copy. A Guide to Business Credit and the Equal Credit Opportunity 1985. 1986. 231 pp. $15.00 per copy. Act 1986. 1987. 288 pp. $15.00 per copy. A Guide to Federal Reserve Regulations 1987. 1988. 272 pp. $15.00 per copy. How to File A Consumer Credit Complaint SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- If You Use A Credit Card RIES OF CHARTS. Weekly. $30.00 per year or $.70 each in Series on the Structure of the Federal Reserve System the United States, its possessions, Canada, and Mexico. The Board of Governors of the Federal Reserve System Elsewhere, $35.00 per year or $.80 each. The Federal Open Market Committee THE FEDERAL RESERVE ACT and other statutory provisions Federal Reserve Bank Board of Directors affecting the Federal Reserve System, as amended Federal Reserve Banks through December 1988. 608 pp. $10.00 Organization and Advisory Committees REGULATIONS OF THE BOARD OF GOVERNORS OF THE A Consumer's Guide to Mortgage Lock-Ins FEDERAL RESERVE SYSTEM. A Consumer's Guide to Mortgage Closings ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancing Regulation Z) Vol. / (Regular Transactions). 1969. 100 Making Deposits: When Will Your Money Be Available? pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address, $2.00 each. INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; 10 or more to one address, $1.25 each. PAMPHLETS FOR FINANCIAL INSTITUTIONS FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; up- Short pamphlets on regulatory compliance, primarily suitdated at least monthly. (Requests must be prepaid.) able for banks, bank holding companies, and creditors. Consumer and Community Affairs Handbook. $75.00 per year. Limit of 50 copies Monetary Policy and Reserve Requirements Handbook. $75.00 per year. The Board of Directors' Opportunities in Community Rein- Securities Credit Transactions Handbook. $75.00 per year. vestment The Payment System Handbook. $75.00 per year. The Board of Directors' Role in Consumer Law Compliance Federal Reserve Regulatory Service. 3 vols. (Contains all Combined Construction/Permanent Loan Disclosure and three Handbooks plus substantial additional material.) Regulation Z $200.00 per year. Community Development Corporations and the Federal Re- Rates for subscribers outside the United States are as serve follows and include additional air mail costs: Construction Loan Disclosures and Regulation Z Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Finance Charges Under Regulation Z 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF How to Determine the Credit Needs of Your Community PROPOSED CEILINGS ON CREDIT CARD INTEREST Regulation Z: The Right of Rescission RATES, by Glenn B. Canner and James T. Fergus. The Right to Financial Privacy Act October 1987. 26 pp. Signature Rules in Community Property States: Regulation B 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Signature Rules: Regulation B Warshawsky. November 1987. 25 pp. Timing Requirements for Adverse Action Notices: Regula- 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANKtion B ING MARKETS, by James V. Houpt. May 1988. 47 pp. What An Adverse Action Notice Must Contain: Regulation B 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR Understanding Prepaid Finance Charges: Regulation Z THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Porter, and David H. Small. April 1989. 28 pp. STAFF STUDIES: Summaries Only Printed in the Bulletin REPRINTS OF BULLETIN ARTICLES Studies and papers on economic and financial subjects that Most of the articles reprinted do not exceed 12 pages. are of general interest. Requests to obtain single copies of the full text or to be added to the mailing list for the series Limit of 10 copies may be sent to Publications Services. Foreign Experience with Targets for Money Growth. 10/83. Staff Studies 114-145 are out of print. Intervention in Foreign Exchange Markets: A Summary of Ten Staff Studies. 11/83. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF A Financial Perspective on Agriculture. 1/84. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, Survey of Consumer Finances, 1983. 9/84. by Thomas F. Brady. November 1985. 25 pp. Bank Lending to Developing Countries. 10/84. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) Survey of Consumer Finances, 1983: A Second Report. INDEXES OF THE MONETARY AGGREGATES, by Helen 12/84. T. Farr and Deborah Johnson. December 1985. 42 pp. Union Settlements and Aggregate Wage Behavior in the 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF 1980s. 12/84. THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- The Thrift Industry in Transition. 3/85. TION RESULTS, by Flint Brayton and Peter B. Clark. A Revision of the Index of Industrial Production. 7/85. December 1985. 17 pp. Financial Innovation and Deregulation in Foreign Industrial 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS Countries. 10/85. IN BANKING BEFORE AND AFTER ACQUISITION, by Recent Developments in the Bankers Acceptance Market. 1/86. Stephen A. Rhoades. April 1986. 32 pp. The Use of Cash and Transaction Accounts by American 150. STATISTICAL COST ACCOUNTING MODELS IN BANK- Families. 2/86. ING: A REEXAMINATION AND AN APPLICATION, by Financial Characteristics of High-Income Families. 3/86. John T. Rose and John D. Wolken. May 1986. 13 pp. Prices, Profit Margins, and Exchange Rates. 6/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT Agricultural Banks under Stress. 7/86. PRICING FROM 1983 THROUGH 1985, by Patrick I. Ma- Foreign Lending by Banks: A Guide to International and honey, Alice P. White, Paul F. O'Brien, and Mary M. U.S. Statistics. 10/86. McLaughlin. January 1987. 30 pp. Recent Developments in Corporate Finance. 11/86. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Measuring the Foreign-Exchange Value of the Dollar. 6/87. REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Changes in Consumer Installment Debt: Evidence from the April 1987. 18 pp. 1983 and 1986 Surveys of Consumer Finances. 10/87. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Home Equity Lines of Credit. 6/88. Alice P. White. September 1987. 14 pp. U.S. International Transactions in 1988. 5/89. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Index to Statistical Tables References are to pages A3-A70 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Depository institutions Agricultural loans, commercial banks, 19, 20 Reserve requirements, 8 Assets and liabilities (See also Foreigners) Reserves and related items, 3, 4, 5, 12 Banks, by classes, 18-20 Deposits (See also specific types) Domestic finance companies, 36 Banks, by classes, 3, 18-20, 21 Federal Reserve Banks, 10 Federal Reserve Banks, 4, 10 Financial institutions, 26 Turnover, 15 Foreign banks, U.S. branches and agencies, 21 Discount rates at Reserve Banks and at foreign central Automobiles banks and foreign countries (See Interest rates) Consumer installment credit, 39, 40 Discounts and advances by Reserve Banks (See Loans) Production, 49, 50 Dividends, corporate, 35 EMPLOYMENT, 47 BANKERS acceptances, 9, 23, 24 Eurodollars, 24 Bankers balances, 18-20. (See also Foreigners) Bonds (See also U.S. government securities) FARM mortgage loans, 38 New issues, 34 Federal agency obligations, 4, 9, 10, 11, 31, 32 Rates, 24 Federal credit agencies, 33 Branch banks, 21, 57 Federal finance Business activity, nonfinancial, 46 Debt subject to statutory limitation, and types and own- Business expenditures on new plant and equipment, 35 ership of gross debt, 30 Business loans (See Commercial and industrial loans) Receipts and outlays, 28, 29 Treasury financing of surplus, or deficit, 28 CAPACITY utilization, 48 Treasury operating balance, 28 Capital accounts Federal Financing Bank, 28, 33 Banks, by classes, 18 Federal funds, 6, 17, 19, 20, 21, 24, 28 Federal Reserve Banks, 10 Federal Home Loan Banks, 33 Central banks, discount rates, 69 Federal Home Loan Mortgage Corporation, 33, 37, 38 Certificates of deposit, 24 Federal Housing Administration, 33, 37, 38 Commercial and industrial loans Federal Land Banks, 38 Commercial banks, 16, 19 Federal National Mortgage Association, 33, 37, 38 Weekly reporting banks, 19-21 Federal Reserve Banks Commercial banks Condition statement, 10 Assets and liabilities, 18-20 Discount rates (See Interest rates) Commercial and industrial loans, 16, 18, 19, 20, 21 U.S. government securities held, 4, 10, 11, 30 Consumer loans held, by type, and terms, 39, 40 Federal Reserve credit, 4, 5, 10, 11 Loans sold outright, 19 • Federal Reserve notes, 10 Nondeposit funds, 17 Federal Savings and Loan Insurance Corporation insured Real estate mortgages held, by holder and property, 38 institutions, 26 Time and savings deposits, 3 Federally sponsored credit agencies, 33 Commercial paper, 23, 24, 36 Finance companies Condition statements (See Assets and liabilities) Assets and liabilities, 36 Construction, 46, 51 Business credit, 36 Consumer installment credit, 39, 40 Loans, 39, 40 Consumer prices, 46, 48 Paper, 23, 24 Consumption expenditures, 53, 54 Financial institutions Corporations Loans to, 19, 20, 21 Nonfinancial, assets and liabilities, 35 Selected assets and liabilities, 26 Profits and their distribution, 35 Float, 4 Security issues, 34, 67 Flow of funds, 41, 43 , 44, 45 Cost of living (See Consumer prices) Foreign banks, assets and liabilities of U.S. branches and Credit unions, 26, 39. (See also Thrift institutions) agencies, 21 Currency and coin, 18 Foreign currency operations, 10 Currency in circulation, 4, 13 Foreign deposits in U.S. banks, 4, 10, 19, 20 Customer credit, stock market, 25 Foreign exchange rates, 70 Foreign trade, 56 DEBITS to deposit accounts, 15 Foreigners Debt (See specific types of debt or securities) Claims on, 57, 59, 62, 63, 64, 66 Demand deposits Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68 Banks, by classes, 18-21 Ownership by individuals, partnerships, and GOLD corporations, 22 Certificate account, 10 Turnover, 15 Stock, 4, 56 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Government National Mortgage Association, 33, 37, 38 Real estate loans—Continued Gross national product, 53 Terms, yields, and activity, 37 Type of holder and property mortgaged, 38 HOUSING, new and existing units, 51 Repurchase agreements, 6, 17, 19, 20, 21 Reserve requirements, 8 INCOME, personal and national, 46, 53, 54 Reserves Industrial production, 46, 49 Commercial banks, 18 Installment loans, 39, 40 Depository institutions, 3, 4, 5, 12 Insurance companies, 26, 30, 38 Federal Reserve Banks, 10 Interest rates U.S. reserve assets, 56 Bonds, 24 Residential mortgage loans, 37 Consumer installment credit, 40 Retail credit and retail sales, 39, 40, 46 Federal Reserve Banks, 7 Foreign central banks and foreign countries, 69 SAVING Money and capital markets, 24 Flow of funds, 41, 43, 44, 45 Mortgages, 37 National income accounts, 53 Prime rate, 23 Savings and loan associations, 26, 38, 39, 41. (See also International capital transactions of United States, 55-69 Thrift institutions) International organizations, 59, 60, 62, 65, 66 Savings banks, 26, 38, 39 Inventories, 53 Savings deposits (See Time and savings deposits) Investment companies, issues and assets, 35 Securities (See also specific types) Investments (See also specific types) Federal and federally sponsored credit agencies, 33 Banks, by classes, 18, 19, 20, 21, 26 Foreign transactions, 67 Commercial banks, 3, 16, 18-20, 38 New issues, 34 Federal Reserve Banks, 10, 11 Prices, 25 Financial institutions, 26, 38 Special drawing rights, 4, 10, 55, 56 State and local governments LABOR force, 47 Deposits, 19, 20 Life insurance companies (See Insurance companies) Holdings of U.S. government securities, 30 Loans (See also specific types) New security issues, 34 Banks, by classes, 18—20 Ownership of securities issued by, 19, 20, 26 Commercial banks, 3, 16, 18-20 Rates on securities, 24 Federal Reserve Banks, 4, 5, 7, 10, 11 Stock market, selected statistics, 25 Financial institutions, 26, 38 Stocks (See also Securities) Insured or guaranteed by United States, 37, 38 New issues, 34 Prices, 25 MANUFACTURING Capacity utilization, 48 Student Loan Marketing Association, 33 Production, 48, 50 Margin requirements, 25 TAX receipts, federal, 29 Member banks (See also Depository institutions) Thrift institutions, 3. (See also Credit unions and Savings Federal funds and repurchase agreements, 6 and loan associations) Reserve requirements, 8 Time and savings deposits, 3, 13, 17, 18, 19, 20, 21 Mining production, 50 Trade, foreign, 56 Mobile homes shipped, 51 Treasury cash, Treasury currency, 4 Monetary and credit aggregates, 3, 12 Treasury deposits, 4, 10, 28 Money and capital market rates, 24 Treasury operating balance, 28 Money stock measures and components, 3, 13 UNEMPLOYMENT, 47 Mortgages (See Real estate loans) U.S. government balances Mutual funds, 35 Commercial bank holdings, 18, 19, 20 Mutual savings banks (See Thrift institutions) Treasury deposits at Reserve Banks, 4, 10, 28 U.S. government securities NATIONAL defense outlays, 29 Bank holdings, 18-20, 21, 30 National income, 53 Dealer transactions, positions, and financing, 32 Federal Reserve Bank holdings, 4, 10, 11, 30 OPEN market transactions, 9 Foreign and international holdings and transactions, 10, 30, 68 PERSONAL income, 54 Open market transactions, 9 Prices Outstanding, by type and holder, 26, 30 Consumer and producer, 46, 52 Rates, 24 Stock market, 25 U.S. international transactions, 55-69 Prime rate, 23 Utilities, production, 50 Producer prices, 46, 52 Production, 46, 49 VETERANS Administration, 37, 38 Profits, corporate, 35 WEEKLY reporting banks, 19-21 REAL estate loans Wholesale (producer) prices, 46, 52 Banks, by classes, 16, 19, 20, 38 Financial institutions, 26 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 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 Merriman Robert P. Black Leroy T. Canoles, Jr. Jimmie R. Monhollon Baltimore 21203 Thomas R. Shelton Robert D. McTeer, Jr.1 Charlotte 28230 William E. Masters 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 Nelda P. Stephenson Fred R. Herr1 Jacksonville 32231 Winnie F. Taylor James D. Hawkins1 Miami 33152 Jose L. Saumat James Curry III Nashville 37203 Patsy R. Williams Donald E. Nelson New Orleans 70161 James A. Hefner 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 L. Dickson Flake John F. Breen1 Louisville 40232 Thomas A. Alvey Howard Wells Memphis 38101 Seymour B. Johnson Ray Laurence MINNEAPOLIS 55480 Michael W. Wright Gary H. Stern John A. Rollwagen Thomas E. Gainor Helena 59601 Warren H. Ross Robert F. McNellis KANSAS CITY 64198 Fred W. Lyons, Jr. Roger Guffey Burton A. Dole, Jr. Henry R. Czerwinski Denver 80217 James C. Wilson Kent M. Scott Oklahoma City 73125 Patience S. Latting David J. France Omaha 68102 Kenneth L. Morrison Harold L. Shewmaker DALLAS 75222 Bobby R. Inman Robert H. Boykin Hugh G. Robinson William H.Wallace Tony J. Salvaggio1 El Paso 79999 Diana S. Natalicio Sammie C. Clay Houston 77252 Andrew L. Jefferson, Jr. Robert Smith, III1 San Antonio 78295 Lawrence E. Jenkins 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 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306: Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. Digitized for FRAS2E. REx ecutive Vice President. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Helen, Minneapolis Li'1"* ©l I San pi jS'/f Lake Oty ?»cisco II II Denver < 1 l^incm ' Kansas City -((,,P"® A: IOklaMoma City. ^Memphis Naskvilj^ r ittleRock Birmingha^®^^ Dallas® ( J**" | ) © S'AJI Antonio April 1984 i i i ALASKA i i i \ i i © / AJP •AN 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