Federal Reserve Bulletin, 1989-11

VOLUME 75 • NUMBER 11 • NOVEMBER 1989 " v FEDERAL RESERVE BULLETIN 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 727 U.S. POLICY ON THE PROBLEMS OF Modifications in the Board's orders autho- INTERNATIONAL DEBT rizing bank holding company subsidiaries to underwrite and deal in bank-eligible securi- The international debt problems of developties consistent with section 20 of the Glassing countries in the 1980s have been serious Steagall Act. and complex. This article offers a perspective on U.S. policy on the problems of Change in Board staff. international debt over the past seven years. 753 LEGAL DEVELOPMENTS Various bank holding company, bank ser- 736 INDUSTRIAL PRODUCTION vice corporation, and bank merger orders; and pending cases. Industrial production rose 0.3 percent in August. AI FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of 738 STATEMENTS TO CONGRESS September 27, 1989. Manuel H. Johnson, Vice Chairman, Board A3 Domestic Financial Statistics of Governors, discusses the state of the A46 Domestic Nonfinancial Statistics bank insurance fund and the adequacy of A55 International Statistics the supervisory framework for banking institutions, before the House Committee on Banking, Finance and Urban Affairs, Sep- A71 GUIDE TO TABULAR PRESENTATION, tember 19, 1989. STATISTICAL RELEASES, AND SPECIAL TABLES 744 Vice Chairman Johnson reviews the implications for U.S. financial institutions of A82 BOARD OF GOVERNORS AND STAFF plans by the European Community to complete its internal market by the end of 1992 A84 FEDERAL OPEN MARKET COMMITTEE and says that a stronger European economy AND STAFF; ADVISORY COUNCILS should benefit the United States and other nations that trade with Europe, before the A86 FEDERAL RESERVE BOARD Subcommittee on Financial Institutions Su- PUBLICATIONS pervision, Regulation and Insurance of the House Committee on Banking, Finance and A88 INDEX TO STATISTICAL TABLES Urban Affairs, September 26, 1989. A90 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES 751 ANNOUNCEMENTS Amendment to Regulation Y. A9i MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Policy on the Problems of International Debt This article was prepared by Edwin M. Truman, some perspective on where we have been, where Staff Director, Division of International Finance, we are, and where we might be going. I make Board of Governors of the Federal Reserve Sys- three basic points. tem. It is adapted from a paper presented at a First, developing countries, the governments conference sponsored by the University of Cali- of creditor countries, the international commerfornia at Berkeley!Stanford University, Joint cial banks, and the international financial institu- Center for Latin American Studies, at the Uni- tions have a substantial common interest in seekversity of California at Berkeley on April 27-28, ing cooperative, constructive, and innovative 1989. approaches to handling the debt problems of the developing countries. The benefits associated The international debt problems of developing with cooperative approaches are overwhelming; countries in the 1980s have been serious and they extend beyond the direct benefits for the complex. It is tempting, nevertheless, to seek countries and their lenders to benefits that can simple, universal solutions to those problems. I only be shared—a prosperous world economy believe that we must resist that temptation, for and a stable financial system. Government has several reasons. the responsibility to emphasize that common First, international debt problems are suffi- interest and to nurture cooperative approaches. ciently complex, and the developing countries Second, though it has been uneven and disapare sufficiently different, that it is inappropriate pointing, significant progress has been made over to speak of a single policy. the past seven years in dealing with international Second, U.S. policy in this area has been debt problems and the associated economic and evolutionary. Even for an individual borrowing financial problems of the developing countries. country, tomorrow's policy approach may well In my view, insufficient attention has been paid differ from today's, just as today's approach to, and insufficient credit has been given for, this differs from yesterday's—or from the one last progress. year or in 1982. Third, U.S. policy in this area will continue to Third, U.S. policy on international debt is a be evolutionary. Secretary of the Treasury responsibility that is shared within the U.S. Nicholas F. Brady put forward some "ideas and government: the Treasury Department, the State suggestions" on March 10, 1989; these ideas Department, the White House, the Congress, were refined during the international meetings at and the Federal Reserve are all involved in the the beginning of April and were embodied in formulation of various aspects of that policy, and guidelines approved by the Executive Boards of its implementation involves an even longer list of the International Monetary Fund and World institutions. Moreover, the United States cannot Bank in May and June; they are in the process of dictate policies in this area because the problems being exploited by Mexico and the Philippines; of international debt are global in scope, affecting and they will continue to be refined. Moreover, the interests of many developed countries around even if Secretary Brady's initiative galvanizes the world as well as many developing countries. progress beyond our wildest dreams, I suspect For all these reasons, this article does not that the problems of international debt, and the attempt to present the definitive statement about implications of those problems as they unfolded U.S. policy on these problems. Rather, I offer in the 1980s, will still be with us at the end of this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 Federal Reserve Bulletin • November 1989 century. Indeed, it is fair to say that such prob- from commercial banks, the economic policies of lems have been with us since the first interna- the borrowing countries, and the external ecotional loans were made many centuries ago. nomic environment during the 1970s and 1980s affected real gross domestic product per capita in Argentina, Brazil, Chile, and Mexico.3 They did WHERE HAVE WE BEEN? so by comparing the actual level of GDP per capita in 1987 (the "present" in their study) with It is precisely because international debt prob- what the level would have been under three sets lems are and always have been with us, as well as of hypothetical circumstances. Their results sugbecause U.S. policies with respect to them have gest the following conclusions. been evolutionary, that it is useful to look back First, each of these countries benefited from briefly at how these problems have evolved over external borrowing in the 1970s in the sense that, the 1980s and what the responses to them have at its pre-crisis peak, real GDP per capita was 4 been. percent to 16 percent (Mexico and Chile respec- I believe that the proximate cause of the inter- tively) above the level it would have been if the national debt problems of the 1980s lies in the rate of real external borrowing had remained changes in the environment of international lend- unchanged from 1975 to 1987 and if the funds had ing in the early 1980s: recession in the industrial been used as efficiently as the actual borrowing countries, deterioration in the terms of trade of was used.4 the borrowing countries, and increases in nomi- Second, under the same assumptions, three of nal and real interest rates. These changes were the four countries (the exception is Argentina) part of a worldwide process of disinflation that would have been better off in 1987, both absobegan in the late 1970s but did not become a lutely and relative to the simulated pre-crisis generally recognized feature of the international peak level, if they had borrowed less in the 1970s economic environment until several years later.1 and early 1980s. The reasons are the abrupt Among the more fundamental causes of the change in access to international capital markets international debt problems of the 1980s were the in the early 1980s and the ex post change in the extent of lending by commercial banks around terms of access before the crisis—the rise in the world to developing countries;2 failure on the international interest rates in real terms. Argenpart of the leaders of the borrowing countries to tina is an exception because weakness in agriculrecognize that a day of reckoning (which could tural exports held real GDP per capita below the be defined in terms of a return to positive real actual and simulated pre-crisis peak level and interest rates) was inevitable; and the inappropri- because a return of flight capital after the Austral ate macro- and microeconomic policies that plan in 1985 boosted the actual level of real GDP many of these countries followed at the time. per capita in 1987 above the simulated level. In a recent study, Steven Kamin, Robert Third, the countries would have been better off Kahn, and Ross Levine have analyzed how the in 1987 if their external borrowing, at the actual interaction of heavy international borrowing rate or at the hypothesized reduced rate, had been used as efficiently as their borrowing had been before the buildup of external debt in the 1. For a more extensive treatment of the origins of the international debt problem, see Edwin M. Truman, "The International Debt Situation," International Finance Discussion Paper 298 (Board of Governors of the Federal Reserve System, December 1986). 3. Steven B. Kamin, Robert B. Kahn, and Ross Levine, 2. Official encouragement to the private commercial banks "External Debt and Developing Country Growth," Internato deal with the "recycling" problem in the 1970s was not a tional Finance Discussion Paper 352 (Board of Governors of major cause of the international debt problem. The propor- the Federal Reserve System, May 1989). tion of the OPEC surplus that was actually recycled through 4. Efficiency is measured in terms of incremental capitalthe banking system was very small, judging by data on the output ratios and, along with capital flight, is assumed to be a liabilities of commercial banks to the OPEC members, espe- function of the quality of economic policies. However, it was cially to the so-called low absorbers, whose surpluses were assumed that capital flight would have been reduced propormore permanent. tionately with the volume of international lending. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Policy on the Problems of International Debt 729 1970s. Even if they had sustained this higher through concerted "new money" loans and relevel of efficiency of investment, the countries scheduling of existing maturities; and the interwould have been as well off (Argentina) or better national financial community worked effectively off (the other three countries) in 1987 with the together to support countries that adopted sound hypothesized lower (but steadier) rate of external economic adjustment programs. borrowing than with the actual level of borrowing One key feature of the approach was that no because of the increased real cost of the larger party provided medium-term financing until all external debt in the late 1980s. parties were ready to do so. This was the policy Such generalizations aside, these four coun- requiring a "critical mass" of financial support tries, and many others in Latin America, experi- from the commercial banks and creditor governenced severe external debt crises in the early ments. It was designed to reinforce the IMF's 1980s. However, though the problems were sim- longstanding policy that, prior to its own disilar, the circumstances of each country as it bursements, the Fund should have appropriate encountered the crisis were quite different. assurances that a program it supported finan- These differences were one reason for adopting cially would be adequately financed overall. This the so-called case-by-case approach to the inter- policy with respect to medium-term financing national debt problem. In practice, of course, was reinforced in a few critical cases by tempothat approach has proved to be less flexible than rary bridge financing provided by the major inthe descriptive words suggest, to the consider- dustrial countries, normally in cooperation with able frustration of all involved. The approach the Bank for International Settlements. was implemented using a common overall frame- By early 1985, remarkable progress had been work consisting of four elements: made in dealing with international debt prob- 1. Appropriate adjustments in economic poli- lems; the immediate crisis was over. However, cies by the borrowing countries. the underlying economic and financial problems 2. Restructuring of existing debts to commer- of the borrowing countries were by no means cial banks and continued lending by the banks to resolved. Economic recovery stalled in the dethe borrowing countries on a concerted basis. veloping as well as in the developed countries. 3. Official bridge financing, in some cases, Tensions mounted as international pressures for while the economic adjustment and financing continued external adjustment by the borrowing programs were assembled. countries came into conflict with the natural 4. An increase in the financial resources of the desire of those countries to resume economic International Monetary Fund in 1983; the Fund growth in an environment in which their political was destined to play a central role in the overall leaders could respond principally to the demands process. of their own citizens. Moreover, the international It was understood that the countries' adjust- commercial banks were increasingly reluctant to ment efforts would founder in the absence of continue lending on a concerted basis even to improvements in the economic environment in countries making strong efforts at economic reform. the industrial countries. Bilateral official credits, For these reasons, James A. Baker III, then which were a relatively small proportion of the Secretary of the Treasury, sought to breathe total debt of most of the heavily indebted, mid- new life into the process through his call for a die-income developing countries, were in most Program for Sustained Growth, presented in cases rescheduled in the Paris Club. Seoul in October 1985. That program envisaged During the crisis period of 1982-83, the vari- a continuation of efforts at economic reform, ous parties with an interest in the international but in the context of a resumption of economic debt situation worked together very harmoni- growth. He called for the international commerously. They had their differences, of course, but cial banks to supply new lending of 2Vi percent under the watchful eye of IMF Managing Direc- to 3 percent per year above the outstanding tor Jacques de Larosiere, the borrowing coun- indebtedness to a group of fifteen heavily intries adopted economic adjustment programs; debted, middle-income developing countries the commercial banks supported those programs during 1986-88. He also advocated an enlarged Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 Federal Reserve Bulletin • November 1989 role for the World Bank in promoting growth- rocco, and the Philippines—economic growth oriented economic policies. averaged more than 4 percent per year in 1986, The Baker Plan, as it came to be called, was a 1987, and 1988. (Venezuela did as well, but its plausible evolution of the efforts to deal with the growth was fueled by a rising budget deficit and international debt problems that had been a rundown of international reserves. Uruguay's brought on by the changes in the environment for growth averaged 4 percent per year, but it slowed international lending in the early 1980s. It also sharply in 1988 and inflation accelerated.) In each had some positive results, which I discuss below. of these countries, inflation was kept reasonably However, the probability of its success was under control. In all four, the ratio of gross lowered by a change in the international eco- interest payments to exports of goods and sernomic environment shortly after it was an- vices declined substantially. Ratios of external nounced: the collapse of international oil prices. debt to exports of goods and services declined as This collapse meant that the oil-exporting devel- well. In one case (Chile), the decline was draoping countries had no firm basis on which to matic (48 percent between 1985 and 1988); in the calibrate their economic policies and calculate other cases, the decline was in the range of 15 to their external financial needs. The oil-importing 20 percent over the same three years. Interestdeveloping countries experienced a windfall as ingly, for Brazil the decline in the ratio was 30 the cost of oil declined. This windfall weakened percent from 1986 to 1988, and the decline for perceptions of the need to adopt economic policy Mexico was almost that sharp over the shorter reforms. The countries that were neither oil period. exporters nor oil importers were not sufficiently Despite some very positive accomplishments, numerous to play a leadership role in a new the three years of the Baker initiative did not phase of dealing with international debt prob- produce a breakthrough in economic growth or lems. Therefore, by the time the Mexican pro- performance on the scale that was hoped for. gram was developed in mid-1986, much of the One reason was that the economic reform efforts momentum of the Baker initiative had been lost. by the borrowing countries were less vigorous than has been envisaged when Secretary Baker laid out his ideas in Seoul. WHERE ARE WE? One consequence of the shortfall in economic reform efforts was that many countries fell out of A careful analysis supports the conclusion that compliance with IMF-supported economic prothe economic policies of the developing countries grams or declined to accept new programs; as a are substantially better today than they were in result, IMF disbursements declined. Over the the early 1980s. The progress of reform has not period 1986-88, the IMF received net repaybeen even. In a few countries little or none has ments of principal from the Baker-15 countries of been made. But, in the vast majority of the about $3 billion. Because the Fund is a monetary heavily indebted countries, economic policies institution whose lending is supposed to be rehave substantially improved: exchange rates are paid over a relatively short period so that the more competitive, real interest rates are positive, funds can be relent to other countries, such net fiscal deficits (especially primary deficits) are repayments are viewed as a positive developnarrower, subsidies have been eliminated, tariff ment if they are accompanied by real economic policies are more rational, and recognition is and financial recovery in the borrowing counwidespread that the role of the public sector in tries. Unfortunately, that was not the case during the economy should be reduced and that market 1986-88. mechanisms and the private sector must be relied A second consequence of the shortfall in ecoupon more heavily to generate sustained eco- nomic reform efforts was a shortfall from anticinomic growth. pated disbursements by the multilateral develop- Moreover, in some countries economic perfor- ment banks (MDBs). Secretary Baker had mance has substantially improved. In four of the anticipated that MDB disbursements over the "Baker-15" countries—Chile, Colombia, Mo- 1986-88 period would total $27 billion; in fact, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Policy on the Problems of International Debt 731 they were about $22 billion—20 percent less than might be viewed as progress. The important what had been expected. Moreover, in October point is that the borrowing countries do not see it 1985, it was anticipated that $27 billion in gross that way: they see an underfinancing and lack of disbursements by the MDBs would translate into appreciation of their economic adjustment efnet disbursements of about $20 billion. In fact, forts. net disbursements were about $10!/2 billion, It is also important to recognize that Venezubarely half what had been expected. The expla- ela repaid a substantial amount of public sector nation for the larger shortfall in net disburse- debt during the 1986-88 period, and a few other ments is that the dollar depreciated during 1986- countries repaid smaller amounts. Meanwhile, 87, raising the dollar value of repayments of significant amounts of private sector debt were non-dollar borrowing from the MDBs. The dol- repaid or otherwise settled. Moreover, in 1987 lar's depreciation also contributed significantly and 1988, many commercial banks adopted stratto the increase in the dollar value of outstanding egies of aggressively reducing their exposures to MDB and IMF claims on the borrowing countries the heavily indebted borrowing countries. For and to a rise in the share of those institutions in example, claims of U.S. banks on the Baker-15 the total outstanding debt of these countries countries dropped by about $16 billion, or almost relative to that of the commercial banks, a large 20 percent, during these two years. In most proportion of whose claims are denominated in cases, these reductions in claims were at a disthe U.S. dollar. count, with the borrowing countries capturing a Secretary Baker in Seoul called for about $20 part of the discount. billion in net new lending by commercial banks to Thus, debt reduction by international commerthe fifteen heavily indebted countries during the cial banks has been going on for some time. In 1986-88 period. It is very difficult to estimate other words, the recent emphasis on debt reducwith any precision the amount of this lending tion in U.S. policy can be viewed as representing during this period. Clearly, however, it was a further step in the evolution of that policy and substantially less than had been anticipated. a recognition of what had already been occur- Total disbursements under concerted lending ring. packages negotiated after 1985 were about %\2Vi Overall exposures of U.S. and foreign billion during 1986-88. One way of assessing this commercial banks to the heavily indebted develfigure is to ask what proportion such disburse- oping countries have declined dramatically— ments were of total scheduled interest payments absolutely and relative to capital—since the outto the commercial banks by the Baker-15 coun- break of the debt crisis. For all U.S. banks tries. The answer is about 21 percent; for the reporting on the Federal Reserve's Country Exthree major borrowers in Latin America (Argen- posure Lending Survey, exposure to the Bakertina, Brazil, and Mexico), the figure was about 27 15 countries declined from 136 percent of capital percent. That is, banks disbursed about two bits in June 1982 to 54 percent in December 1988. On for every buck they received in interest. During average for the nine large money-center banks, the 1983-85 period, disbursements to the fifteen the ratio declined from 201 percent to 92 percent countries under concerted lending packages rep- over the same period. resented about one-third of scheduled interest This very progress in reducing banks' expopayments; the figure was about 43 percent for the sures has helped diminish the sense of urgency three major Latin American borrowers. among the commercial banks in dealing construc- Some might argue that this declining coverage tively with the continuing problems of the of interest payments is symptomatic of the pro- heavily indebted countries. This loss of urgency, gressive loss of consensus among the interna- in turn, was one of the many factors underlying tional commercial banks in support of the Baker the widespread perception that something new Plan. From another perspective, one that recog- was needed to reinvigorate the process of dealing nizes that concerted lending is an unnatural pro- with international debt problems. cess that at best mimics normal market practices, In my view, the situation in early 1989 had two the declining coverage of interest payments other notable features: most of the progress that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 Federal Reserve Bulletin • November 1989 has been made in terms of economic perfor- capital and the encouragement of direct foreign mance (positive growth rates combined with investment. moderate inflation) has been made by small coun- On March 16, following his return from a trip tries; and external performance has been supe- to Europe, the Federal Reserve issued a staterior to internal performance. ment by Chairman Greenspan that is useful to It is worth considering this second factor in quote: detail. External adjustment is easier to bring about than internal adjustment. All that is neces- I fully support the principles put forward by Secretary Brady last Friday [March 10] for helping the sary for the former is that a country maintain a heavily indebted developing countries to resolve their competitive exchange rate and reasonably supeconomic and financial problems: continued economic portive macroeconomic policies. However, un- reform in order to achieve sustained economic growth; less the country gets its macroeconomic policies timely and adequate external financial resources to right, the result is very high real interest rates or support economic development; and . . . voluntary debt reduction supported by the international financial very rapid domestic inflation or both. Thus, an institutions. The challenge ahead for all of us is to important element of the overall adjustment proreinvigorate the process and to ensure that it works. cess is getting the internal balance between savings and investment right. Given the limited How are we—borrowing countries, commerscope for supply-side adjustments to take hold in cial bankers, international financial institutions, the short run, achieving this balance usually and creditor countries—going to make this promeans reductions in fiscal deficits or, in some cess work? cases, fiscal surpluses. Moreover, when the in- The initiative lies properly with the borrowing completeness of internal adjustment is mani- countries. Fortunately, and in contrast with the fested in rapid rates of inflation, it undercuts situation in 1986 after the start of the Baker political support from the middle class for overall initiative, some countries are ready to resume efforts at economic reform. their efforts at economic reform or to build upon the progress already achieved. The list includes Mexico, the Philippines, Venezuela, Morocco, WHERE ARE WE GOING? Costa Rica, and Uruguay. The readiness of the leaders of these countries to embark upon a new It was against this background that Secretary phase is an advantage, but their readiness also Brady, on March 10, 1989, called for a revitaliza- underlines the urgent challenge to the other partion of the debt strategy. His proposals built on ticipants in the process, particularly the commerthe lessons and achievements to date. cial banks. He stressed the importance of economic One problem is that some other countries, growth, the crucial role of sound economic poli- which do not need IMF financial support for cies and policy reforms to achieve that growth, their economic programs, face economic and the continuing need of borrowing countries for political pressures to produce concrete results external financial resources, and the case-by- in their dealings with the international commercase approach. At the same time, he recognized cial banks and the international financial comthe need—which in some cases may be more munity. One such country is Colombia, whose political than economic—for voluntary debt and "jumbo" refinancing loan was completed after debt-service reduction, and he called on the more than a year of effort. Another is Chile, international financial institutions (the IMF and which has compiled an admirable record of the World Bank) to support such operations. economic reform and growth over the past several years but lacks the access to the inter- However, he clearly stated that the resources national financial markets that these achieveavailable from these institutions for this or any ments might have been expected to open. It is other purpose are limited. He therefore called important to find a way not to penalize counupon developing countries to adopt policies that tries like Colombia and Chile, but rather to would encourage the exploitation of alternative reward them for their accomplishments. Chile, sources of external financing—the return of flight Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Policy on the Problems of International Debt 733 in fact, has turned to the Fund and World Bank counts, "take it or leave it;" they also assume for new programs to help finance a retirement that lenders need not participate at all in this (buyback) of its debt to commercial banks un- aspect of a financing package. This thought der a 1988 arrangement with the banks. underscores the importance of maintaining as In another category are countries like Argen- orderly and as businesslike a process as possitina and Ecuador that are struggling to implement ble. Otherwise, what is now a positive-sum programs of economic reform. The people and game, benefiting all participants, easily can turn leaders of these countries must have a sense of into a negative-sum game, in which the borrowhope and the confidence that they will not be left ing country probably will be a loser along with out of the reinvigorated debt strategy. Of course, most commercial banks and the rest of the the best way for a country not to be left out is to international financial community. These calcuimprove its efforts at economic reform and its lations also suggest that voluntary debt- or actual performance, but that is easier said than debt-service-reduction transactions, backed by done. limited funding from the international financial Another problem is unrealistic expectations institutions, are likely to provide only limited, about the scale of the assistance from the inter- near-term cash-flow relief to the borrower. national financial community to those countries Thus, borrowers with large external financing that are prepared to help themselves. The in- needs will continue to need "new money" ternational financial institutions have limited re- loans. sources to support debt- and debt-service- Another risk is that commercial banks may reduction operations. have unrealistic expectations about the finan- The limited experience with such operations cial support that is available from the public suggests, as a first approximation, that coun- sector—the international financial institutions tries get what they pay for in such operations. If or bilateral lenders, like Japan—in connection the secondary market price of a dollar of a with debt and debt-service reduction. Except country's debt is 40 cents, that country can use when a bank is able to dispose of its debt in a a dollar to buy back $2.50 of debt, saving about cash buyback operation, commercial banks 25 cents (gross) in annual interest payments, must expect to retain considerable risk on their assuming an interest rate of 10 percent; and it books even if the probability of principal or can save 15 cents net of the interest paid, or that interest payments on their claims has been otherwise could be earned, on that dollar. If, enhanced. instead, it uses a dollar to enhance the principal As I noted earlier, commercial banks in difor interest in an exchange offer, more of its old ferent circumstances can be expected to have debt may be retired, but part will be replaced different preferences for methods of debt or with new debt and the net interest saving will be debt-service reduction. Moreover, some banks about the same. This equivalence should not be will prefer not to engage in such operations at all surprising because in both cases the calcula- unless they take the form of debt-equity swaps. tions assume that the borrower is offering cash, In fact, for some borrowing countries, the majoror collateral with a cash equivalent, in return ity of the banks (weighted by size of existing for promised payments with the same present claims) may prefer to advance new money, or value to the marginal creditor. However, these capitalize some or all of interest payments comtypes of approximations fail to distinguish be- ing due, instead of participating in debt or debttween banks that are situated differently and, service reduction. Their preferences should be therefore, prefer different methods of debt or accommodated as well. debt-service reduction and are prepared to act What about combining debt or debt-service accordingly. reduction with new loans to the same borrower These types of calculations also assume that as part of a single financing package? Commerparticipation by lenders in debt- and debt-ser- cial bankers argue with considerable force that vice-reduction transactions is voluntary in that the two are incompatible; indeed, convincing a the debtor cannot dictate the size of the dis- bank's board of directors to do both is not an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 Federal Reserve Bulletin • November 1989 easy task. However, as long as a bank expects associated with funds advanced by commercial to receive interest payments from a borrower in banks through such arrangements is much higher excess of any effective financing the bank pro- than the risk that spread would cover. In the vides through debt or debt-service reduction, a foreseeable future, most commercial banks are strong case can be made to support the recy- likely to limit their truly voluntary direct lending cling of a portion of those expected payments if to developing countries to financing trade and the alternative would be to receive nothing at small projects, primarily in the private sector. It all. is essential that the policies of bank supervisors Assuming that the borrowing country follows a on loan-loss reserves not discourage such lendsound program of economic reform that is sup- ing, but it is not likely to produce large net flows ported by the Fund and the World Bank and to the countries that have experienced debtrecognizing the uncertain nature of projections of servicing problems in the 1980s. a country's need for external financing, the fun- How, then, can these countries expect to fidamental issue is whether that country's eco- nance development in the future? This is the nomic program receives external financial sup- central issue raised by Secretary Brady's speech port adequate to enable it to meet its scaled- to the Bretton Woods Committee in March. down obligations. One way to ensure that the Aside from domestic savings, which one may program is adequately financed is to provide the hope will be employed more efficiently than in maximum conceivable amount of debt or debt- the past, and aside from limited financing from service reduction. Under such an approach, the the multilateral development banks, the developcommercial banks would provide more than ing countries must look primarily to three exterenough financing in the "fat years" to cover the nal sources for financing: direct foreign invest- "lean years." They effectively would provide ment, international capital markets, and the less financing if they did less debt and debt- return of flight capital. service reduction and provided fresh credits to In the near term, direct foreign investment is cover the lean years. Moreover, the provision of probably the most promising source since the fresh credit, especially on a conditional basis, investor obtains a direct claim on assets in the would be a less permanent form of financing than country and can employ those assets to produce debt or debt-service reduction. a real return. However, the climate must be Some argue that banks that take the new- conducive to such investments. "Climate" here money route, in whole or in part, impose a means not only the rules governing access to the heavier debt burden on the borrowing countries country and the repatriation of earnings but also and will not discharge their responsibility to the macroeconomic (and microeconomic) policy assist the countries in debt or debt-service reduc- environment. tion. I would argue that what is most important is As for access to international capital markets, that a commercial bank help meet the borrowing the yields implicit on commercial bank claims country's overall financial needs viewed from a that are traded in secondary markets suggest that long-term perspective; the form of its participa- direct financing would be rather expensive today. tion is much less important. However, for a few countries—Chile and Colom- The issue of "new money" is closely con- bia come to mind—the yields are little higher nected to the issue of the long-term external than those on bonds of below-investment grade. financing of the economic development of these Mexico recently raised $100 million through a countries. It should be clear that debt or debt- bond placement with a yield of about 17 percent. service reduction is an abnormal form of fi- Clearly, access to such markets offers the best nancing and that it has natural limits at the long-term hope for private sector financing from forgiveness of 100 percent of the claims. It abroad. A stable financial climate and a demonshould also be clear that yields of LIBOR plus strated record of servicing obligations are neces- 13/i6 percent on jumbo loans to a government with sary to open such access. recent interruptions to debt service do not rep- In the meantime, the return of capital that resent normal market access; the perceived risk domestic residents have sent abroad is a poten- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Policy on the Problems of International Debt 735 tial source of financing.5 The permanent return of with the multiple underlying problems included flight capital in substantial magnitude is likely to under the rubric of "the international debt probbe a medium-term phenomenon, however, com- lem." The economic policies of most of the ing after macroeconomic stability has been rees- borrowing countries have substantially imtablished but before full access to international proved; many of these countries have taken long capital markets has been achieved. strides toward sustained economic growth; a few may have reached it. The fresh appreciation of In summary, I believe that much has been the crucial role of market forces and economic accomplished in the past seven years in dealing incentives by the leaders of these countries is impressive. At the same time, I believe that we are engaged in what is, at least potentially, a positive-sum 5. It is important to appreciate that flight capital is difficult to measure and that links between measured capital flight and game. Both the borrowing countries and the comeconomic variables that are important to the development mercial banks must continue to recognize this process, such as investment, are difficult to establish; see fact. It justifies a role for the public sectors of the David B. Gordon and Ross Levine, "The Capital Flight 'Problem,' " International Finance Discussion Paper 320 creditor countries, acting primarily through the (Board of Governors of the Federal Reserve System, April international financial institutions. It also imparts 1988). Nevertheless, in many developing countries some to the entire effort a sense of the consequences of residents undeniably hold a substantial portion of their wealth abroad. failure and an associated sense of urgency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 Industrial Production Released for publication September 15 tions. Excluding motor vehicles, output of both consumer goods and business equipment was Industrial production rose 0.3 percent in August sluggish during the summer. At 142.4 percent of following revised increases of 0.1 percent in July the 1977 average, the total index in August was and 0.2 percent in June. Almost all of the August 2.8 percent higher than it was a year earlier. gain is attributable to a pickup in the output of Manufacturing output rose 0.2 percent in August, motor vehicles and parts and a rebound in coal and capacity utilization in manufacturing, at 84.0 mining following the end of most labor disrup- percent, edged down. Detailed data for capacity Ratio scale, 1977=100 160 Total Index Products 140 120 Materials 100 80 160 Manufacturing Nondurable Materials 140 v Nondurable Durable Durable 120 100 Energy J I L J L 80 Intermediate Business Products supplies Construction supplies Motor Vehicles and Parts Final Products Defense and 150 space 200 135 180 120 e B q u u s i i p n m es e s n t 160 140 90 120 Consumer goods 75 100 60 80 1983 1985 1987 1989 1983 1985 1987 1989 All series are seasonally adjusted. Latest series: August. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

737 1977 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuuppp 1989 1989 AAAuuuggg... 111999888888 tttooo AAAuuuggg... 111999888999 July Aug. Apr. May June July Aug. Major market groups Total industrial production 142.0 142.4 .7 .0 .2 .1 .3 2.8 Products, total 152.0 152.3 .7 .1 .4 -.2 .2 3.4 Final products 150.4 150.8 .9 .2 .3 -.3 .3 3.4 Consumer goods 138.9 139.0 .8 -.3 .3 -.5 .1 3.0 Durable 128.0 129.6 1.6 -.7 -.3 -2.2 1.3 3.1 Nondurable 142.9 142.5 .6 -.1 .5 .1 -.3 2.9 Business equipment 168.9 169.9 .9 .8 .2 -.3 .6 6.0 Defense and space 181.7 181.2 .7 .4 .2 .3 -.3 -2.0 Intermediate products 157.3 157.6 .3 -.1 .5 .2 .2 3.5 Construction supplies 141.0 141.5 .6 .0 .6 .0 .4 2.5 Materials 128.4 128.9 .8 -.3 -.1 .6 .4 1.9 Major industry groups Manufacturing 148.6 148.9 .7 .0 .3 .0 .2 3.4 Durable 146.9 147.5 .7 .1 .1 -.3 .4 3.0 Nondurable 150.9 150.9 .7 -.1 .6 .4 .0 4.0 Mining 101.5 103.9 .9 -.3 -.8 .3 2.3 .1 Utilities 115.0 113.9 -.4 -1.3 -1.4 -.9 -1.0 -3.3 NOTE. Indexes are seasonally adjusted. utilization are shown separately in "Capacity goods retraced more than half of July's loss Utilization," Federal Reserve monthly statistical mainly on the strength of a rebound in appliance release, G.3. production. In the nondurable consumer goods In market groups, the output of consumer sector, small declines were widespread. goods was little changed in August with a re- In August, business equipment rose 0.6 perbound in the production of durable goods largely cent with about two-thirds of the gain related to offset by a decline in output of nondurables. growth in output of motor vehicles. Recently, Automotive products posted significant gains as most other major components of business equipauto assemblies increased to an annual rate of 6.3 ment have slowed noticeably after having posted million units from a rate of 6.0 million units in sizable gains, on balance, during the first half of July; production of consumer trucks also rose this year. Output of construction supplies rose substantially. In August, production of home again in August but still remains below the recent high in January. Materials production, which Total industrial production—Revisions weakened earlier this year, increased in each of Estimates as shown last month and current estimates the past two months. However, most of the August gain was attributable to the rebound in Percentage change coal mining. Index (1977=100) from previous MMoonntthh months In industry groups, manufacturing output rose 0.2 percent in August as output of durable goods Previous Current Previous Current was boosted by strong gains in motor vehicles May 141.6 141.6 -.1 .0 and steel. Outside manufacturing, production in June 141.4 141.9 -.1 .2 mining rose 2.3 percent, but output at utilities July 141.7 142.0 .2 .1 August 142.4 .3 declined 1.0 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 Statements to Congress Statement by Manuel H. Johnson, Vice Chair- ies will be required to support either the bank or man, Board of Governors of the Federal Reserve thrift fund. Additional proposals for improve- System, before the Subcommittee on Financial ments may emerge from the broad study of the Institutions Supervision, Regulation and Insur- deposit insurance system required by the thrift ance of the Committee on Banking, Finance and legislation. Urban Affairs, U.S. House of Representatives, I shall begin my comments with a brief over- September 19, 1989. view of the condition of the commercial banking system and then draw from that assessment to I am pleased to be here today on behalf of the evaluate the relative strength of the bank insur- Board to discuss the state of the bank insurance ance fund. I will also discuss several elements fund and the adequacy of the supervisory frame- that the Federal Reserve believes are essential to work for banking institutions. It may seem sur- a sound deposit insurance and supervisory proprising to some that we find ourselves addressing gram. While I recognize that the subcommittee is the adequacy of that fund, after having just also interested in issues affecting the credit union enacted major and costly thrift legislation that insurance fund, I will focus my prepared remarks included provisions to strengthen both the bank principally on the banking industry, given the and the thrift insurance funds. However, it is long-standing and important responsibilities of precisely because of the nature and severity of the Federal Reserve as a bank supervisor. the problems experienced by thrift institutions, and the fact that the commercial banking system has, itself, gone through an exceptionally difficult period, that it is entirely appropriate that we do DEVELOPMENTS AFFECTING so. BANKING RISKS The thrift legislation, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 This decade has been a difficult and challenging (FIRREA), includes numerous provisions and one for the U.S. banking system. It began with substantial financial resources that should the collapse of oil prices and back-to-back recesstrengthen both the nation's depository institu- sions that inflicted heavy damage on many busitions and their federal deposit insurance pro- ness sectors and was associated with historically grams. Only time will tell whether the funding high and volatile interest rates. Increased levels provided is ample or will require future adjust- of competition from both foreign banks and doments, but the resources already provided will mestic nonbank firms, deregulation of interest permit the agencies to take decisive actions rates, technological innovations, and a general toward resolving problems that have already blurring of distinctions between banking and lingered too long. Stronger capital standards for securities markets have also forced virtually all thrift institutions, enhanced enforcement pow- U.S. banking organizations to respond to new ers, and other actions should also improve the competitive pressures and demands from the safety and soundness of the depository system, market. These, and other, events, together with in general. Measures to increase insurance excesses in both domestic and foreign markets, assessments on both thrift institutions and com- led, in some cases, to extensive losses in such mercial banks should provide much-needed re- areas as real estate and foreign lending. The high sources to rebuild the insurance funds and to interest rates, combined with depressed comreduce the likelihood that further taxpayer monmodity prices, also adversely affected many Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

739 farming communities and led to record numbers contribute to the operating efficiency and finanof failures by midwestern banks. cial performance of U.S. businesses. Neverthe- Some of these problems remain. Lower oil less, the higher debt levels and relatively lower prices and overbuilt real estate markets, resulting equity cushions that characterize such transacin part from excessive lending and investment tions can also weaken the borrower's ability to practices, have created substantial problems in withstand financial adversity and, other things the Southwest for both banks and thrift institu- being equal, can raise the level of risk in bank tions and have been a common factor in the loan portfolios. This area is one that warrants failure of many of the institutions in that region. particularly close attention by bank managers This sector could still strain the economic recov- and supervisors alike. ery of financial institutions in that area for years Ultimately, however, it is the size and number to come. Resolving the huge volume of assets of of banks that fail or that require federal assisforeclosed thrift institutions could put pressure tance that affects the deposit insurance fund, and on certain segments of that real estate market for those figures remain stubbornly high. More than some time. 150 banks have already failed during the first Elsewhere, real estate markets in the North- eight months of this year, a pace that is similar to east and in pockets of the Southeast have also the record number set last year. Although the shown growing signs of weakness during the past assets of this year's failed banks are significantly year. This factor, combined with the rapid less than those at this time a year ago, at more growth of real estate development lending by than $25 billion they are still very large by banks in those areas, suggests that some new historical standards. problems will appear there. Despite the picture I have painted, not all of Problem loans to heavily indebted foreign the recent developments have been negative. countries remain a major area of concern for Most of the largest and most severe problem many of the nation's largest banking organiza- institutions that loomed over us for months have tions, even though their exposures have declined now been addressed and, barring some further in relative terms. As of March 31, 1989, claims on setbacks or shocks, should be resolved. They rescheduling countries of the nine most interna- include what had been the six largest bank holdtionally active U.S. banks represented 101 per- ing companies in Texas—each of which had cent of their primary capital (principally their numerous subsidiary banks. With conditions in equity and reserves). This relative exposure is the Midwest stabilizing and the worst problems down sharply from the 233 percent at the end of in Texas apparently resolved, there is reason to 1982, but is substantial, nonetheless. The im- believe that we may have "turned the corner" provement reflects, in part, efforts by banking and might finally begin to see fewer and smaller organizations to strengthen their capital and re- bank failures in the future. serve positions. However, some difficulties During the past year, banking industry earnclearly remain, and we believe it is appropriate ings also rebounded sharply from the net losses for these institutions to continue to take steps to of 1987, which were caused when the larger assure that their reserve levels are consistent banks created their special foreign debt reserves. with the risk exposure in their loan portfolios. In As a percent of assets, last year's earnings of the contrast, most regional and superregional banks 50 largest banking organizations were near their have virtually eliminated foreign exposure as a post-World-War-II highs and have remained material factor affecting their financial health. strong through the middle of this year. Recent Growing exposure to highly leveraged borrow- earnings of smaller companies are also generally ers, including involvement in leveraged buyouts strong. Capital at major banks has continued to and other highly leveraged financings, also has improve, not only in preparation for new riskimportant implications for the risk profiles of based capital standards, but also in recognition banking institutions. Such transactions can be by many banks and bank holding companies that important vehicles for the necessary restructur- their capital ratios had fallen too low. Much of ing of some companies, and, in this way, may the improvement has come through stronger Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 Federal Reserve Bulletin • November 1989 earnings and lower dividend payout rates, while year have further reduced the fund's resources. other gains have come from new equity issues. It should be rebuilt as soon as possible, and Higher capital cushions, as recognized by the fortunately, steps are already being taken to do Congress in passing FIRREA, are critical in that. enhancing the condition of individual institu- Under FIRREA, deposit insurance premiums tions, promoting the stability of the banking for banks are scheduled to rise from the current system as a whole, and protecting the strength of 8.3 basis points of deposits to 12 basis points in the deposit insurance funds. 1990 and then to 15 basis points beginning in In short, the banking system is basically 1991. Applying the 1991 rate to midyear 1989 sound, but there remain some unresolved prob- domestic deposits would yield an additional $1.4 lems that could continue to put pressure on the billion annually of revenues for the fund, an deposit insurance system and the supervisory amount equal to 10 percent of its balance at apparatus. These pressures will come from grow- year-end 1988. Such future increases, matched ing competition in capital markets and from with what should become declining payout rates, continued financial innovations, as well as from should do much to restore the fund to its tradipersistent asset quality problems. tional levels. It may still, however, be several years before that target is reached. Meanwhile, we should recognize that recent STRENGTH OF THE events have demonstrated the strength of the BANK INSURANCE FUND bank insurance fund. The large number of failures we have witnessed, combined with the I should acknowledge at the outset that the unprecedented size of the banks that failed, has easiest way to evaluate the adequacy of an tested the ability of both the fund and the bank insurance fund is in hindsight. We can examine supervisory system to deal with major problems. the general condition of the banking system, Throughout this trying period, the fund balance assess trends and risks that have appeared, and has remained substantial and capable of handling compare existing resources and coverage ratios the difficult problems it has faced. of the fund to those of the past. Except in extreme cases, however, there is no obvious procedure or magic figure that will indicate DEPOSIT INSURANCE REFORMS whether existing resources are adequate to deal with future unpredictable events. That said, I can While FIRREA takes several major steps toward offer some observations about the relative improving the safety and soundness of the deposstrength of the bank insurance fund. itory system, even its most ardent supporters The exceptional problems that the Federal recognize that it does not address a number of Deposit Insurance Corporation has faced this other significant reforms that might also be helpdecade have reduced the fund, relative to the size ful. The act, therefore, mandated a major study of insured deposits, to a historically low level. At of the deposit insurance system by the Treasury, the end of 1988, the fund equaled only 0.80 in consultation with the depository institution percent of insured deposits, which was sharply regulatory agencies, the Office of Management lower than the level the year before and extended and Budget, and private experts. This study, the generally steady decline in the coverage ratio along with recommendations for any necessary that began in the late 1950s. Currently at its administrative and legislative actions, is to be lowest point in history, the coverage ratio is also submitted to the Congress in early 1991. Concurwell below the statutory target of 1.25 percent rently, the General Accounting Office is required recently set by FIRREA. Even in absolute terms, to conduct a study of the deposit insurance the fund declined $4.2 billion during 1988 to $14.1 system. billion, and by year-end was at its lowest level The Board attaches considerable importance since 1982, when insured deposits were roughly to these studies, and it intends to participate one-third lower. Continued large outlays this actively in the Treasury's effort. A review, at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 741 both a conceptual and practical level, is needed Second, owners and managers must be given of the consistency of an insurance system that as much incentive as is possible to control the evolved out of the Great Depression, on the one risk exposure of their businesses. If private indihand, with today's deposit-gathering industry of viduals have such incentives, then there is far both small institutions and giant modern financial less need and tendency for public supervisors to services organizations that operate across mar- become regulators and exert hands-on control of kets and national boundaries, on the other. It will a depository institution. This, in turn, provides be a difficult task that will require considerable for maximum flexibility for depositories to recare. spond to a dynamic financial environment while It is obviously premature to judge the conclu- still not imposing unacceptable risks on the sions of the study, and I have no wish to do so. safety net. Nevertheless, this is a subject to which much Strong incentives for owners and managers to thought has already been given, and I would like control risk are best achieved, we believe, by to discuss some key ideas that should receive requiring that those owners who would profit attention. from a depository institution's success have ap- The existence of a federal safety net for depos- propriate amounts of their own capital at risk. itory institutions—consisting of federal deposit Capital acts as a buffer against unexpected insurance, the discount window, and guarantees shocks to a firm and thereby helps to insulate of the payments mechanism—will inevitably lead both individual firms and the depository system some owners and managers of firms that benefit from risk. But more important for today's discusfrom the safety net to increase their willingness sion, there is no better way to ensure that owners to expose their depositories to excessive risk. exert discipline on the behavior of their firm than The problems raised by such actions are endemic to require that they have a large stake in that to all insurance programs, public and private, enterprise. Indeed, the need for larger cushions and have been given a descriptive name: moral to absorb unexpected losses and for increased hazard risk. There are many ways for the insurer private incentives to monitor and control risk are to reduce the seriousness of moral hazard risk, the fundamental reasons why increasing the and since, as a practical matter, none of the amount of capital in the insured depository instimeans for controlling this risk is sufficient by tution system has been a major goal of Federal itself, several strategies are typically employed. Reserve policy in the 1980s. In the Board's view, two components must be Appropriate public policies for controlling included in a program for controlling moral haz- moral hazard would not eliminate bank failures ard risk in the deposit insurance system. First, nor would they put an end to supervisory mergthe risk position of the insured institutions must ers and acquisitions. Competitive pressures will be monitored and measured by the regulator on a continue and will likely increase. Various sectors timely and accurate basis. For depository insti- of our economy and of the world economy will tutions, this means that there are no substitutes no doubt experience unexpected changes in supfor good accounting data and frequent on-site ply and demand. There will always be some examinations of the financial condition of the owners and managers whose fraudulent behavior insured depository. Only with timely and accu- or outright incompetence puts their institutions rate data and the unique insights that can be at peril. gained on-site can informed decisions be made as The continuing need to deal with insolvent or to whether the depository is exposed to exces- nearly insolvent depositories suggests that other sive risk and what corrective actions are needed. policies to control moral hazard and minimize the This strategy does not require that the depository adverse effects of capital-impairing events may be subject to detailed and onerous regulations in be desirable. One such set of policies, and a set virtually every facet of its business. It does that is to be examined in the Treasury study, are require, however, that the supervisor be well actions to be taken with respect to the recapitalinformed regarding the financial condition of the ization or closure of insured depositories whose insured institution. capital is depleted to, or near the point of, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 Federal Reserve Bulletin • November 1989 insolvency. Surely the thrift debacle has taught stressed the importance of strong capital posius that allowing insolvent institutions to remain tions for banking organizations. In establishing open by living off the safety net can easily lead to capital requirements and assessing capital ademassive taxpayer costs, not to mention serious quacy, the Federal Reserve has endeavored to misallocations of credit and distorted competi- utilize asset valuations based upon realistic and tive incentives. It may be that we need to estab- reasonably current on-site examiner assessments lish a clearer and more automatic set of regula- of the credit quality of bank assets. Equally as tory actions that will be taken as a depository important, it has been Federal Reserve policy to institution's capital falls below established mini- exclude or severely limit goodwill and other mums. These actions should probably be increas- intangible assets when assessing commercial ingly severe as capital ratios decline, culminating bank compliance with minimum capital stanin closure or recapitalization and new ownership dards. and management. The point would be that as Since the early 1980s, the banking agencies private owners take risks and cause their equity have employed supervisory guidelines for miniin the business to decline, they give up manage- mum levels of capital to total assets, and have ment discretion to the caretakers of the public generally encouraged banking organizations to interest who insure the institution. Such a policy operate above the minimum levels. Our efforts in would help to internalize to management the cost this regard have extended beyond the examinaof exposing the safety net. tion process and into the administration of the Other policies designed to harness private in- Bank Holding Company Act and other banking centives to control risk also deserve serious laws. Specifically, we have expected banking consideration. These policies include various organizations undertaking significant expansion proposals for use of subordinated debt to impose to maintain strong capital positions, well above greater market-like discipline, and risk-based de- supervisory minimums, without significant reliposit insurance premiums. With regard to risk- ance on intangibles. based premiums, without prejudging the issue, I One of the most recent and important steps would emphasize that it would be vital to make that we and the other U.S. banking agencies have any such system consistent with the risk-based taken to strengthen bank capital is to adopt the capital policies adopted by virtually all of the new international risk-based capital standard, major industrialized countries in 1988. which will apply to banks of most major countries. That standard was designed to recognize the different levels of credit risk inherent in SUPERVISORY MEASURES various types of bank assets and off-balancesheet activities and also to lead to a more equi- The implementation of any changes to the de- table basis for international competition. The posit insurance program, as well as the day- new standard will be fully phased in by the end of to-day maintenance of an effective supervisory 1992 and specifies an interim target for the end of framework, requires the timely detection of in- 1990. It stresses the need for an adequate level of solvent or near-insolvent institutions. For this "core" shareholder funds, defined as common reason, the Federal Reserve has long employed a equity and perpetual preferred stock (net of number of techniques to maintain the quality and goodwill), and limits the amount of loan-loss effectiveness of its supervisory activities, and reserves that may be included in the total capital recently has taken some additional steps to base. Still other risks that can affect a bank's strengthen its supervisory program. Although I financial health, such as interest rate exposure, have alluded to some of these actions already, I are under review and may result in additional believe it is useful to highlight a few in greater measures or refinements to the newly adopted detail. risk-based standard. Bank capital plays a critical role in protecting Capital adequacy. The Federal Reserve and the the deposit insurance system, both by absorbing other U.S. banking agencies, as well, have long losses and by giving bank investors the incentive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 743 to operate their institution in a safe and prudent Other Supervisory and Regulatory Measures. way. These new risk-based standards should Earlier this year, the Board reiterated its policy assist us in our effort to ensure that the banking regarding loans to highly leveraged firms. Among system remains adequately capitalized. other things, that statement stressed the importance of a thorough and independent assessment On-Site Examinations. The Federal Reserve be- by the lender and re-emphasized the need to lieves firmly that on-site examinations provide consider the strength of such borrowers under the best way to evaluate the true financial condi- various economic conditions, including the postion, including the asset quality and capital ade- sibility of an economic downturn. The policy also quacy, of commercial banking organizations. As emphasized the need for senior bank manage- I have already suggested, only by making timely ment to put in place procedures to monitor the and realistic assessments of the credit quality of performance of such credits, as well as effective bank assets can a truly accurate measure of bank internal controls to limit bank exposures to indisolvency and capital adequacy be derived. In vidual or related borrowers and industries. Our addition, on-site examinations afford supervisors view is that any loan whose repayment is not an ideal opportunity to assess directly the effec- based upon identifiable sources of cash flow that tiveness of bank management, as well as the are realistic in terms of current, as opposed to quality of the bank's internal operating practices future or expected, economic conditions is specand systems for monitoring and controlling risks. ulative and could involve undue risks. Although reviewing periodic financial reports Leveraged buyouts and other highly leveraged is also an important function, on-site examina- financings may offer substantial benefits to the tions remain the cornerstone of our supervisory economy, and, when properly structured, should program. In this regard, it is the Federal Re- also be sound extensions of credit. However, as serve's policy to examine all state member banks I have already mentioned, such credits can inand bank holding companies with significant op- volve significant risks, and until we have more erations annually, either directly or in conjunc- experience with these financings, the Federal tion with state supervisory agencies. Problem Reserve plans to monitor these bank exposures institutions are examined more frequently and carefully. We must obviously remain particularly are subject to other more rigorous supervisory sensitive to the potential effect of any possible reviews. economic slowdown on the ability of highly Conditions of the past several years, in both leveraged borrowers to repay their debts. the banking and thrift industries, have imposed A number of other long-standing laws, regulasignificant pressures on our field examination tions, and supervisory policies exist to limit bank resources. This year, in particular, our involve- risk-taking. In particular, the banking agencies ment in thrift institution examinations and clos- enforce numerous statutes and regulations that ings has forced us to postpone the regular peri- establish limits, collateral requirements, and apodic examinations of some institutions that propriate review and approval terms regarding appear to be healthy and to limit the examination loans to affiliated companies and bank insiders. scope of others. While we can make such adjust- These areas, where credit judgments might be ments temporarily, we cannot do so for extended more readily compromised, are also closely evalperiods. Such actions would increase the possi- uated during on-site examinations. The Federal bility that problems could develop and grow Reserve has a broad array of enforcement powwithout early detection. In light of these and ers, including cease-and-desist authority and other developments I have discussed in this civil money penalties, which it has used to adstatement, it is crucial that we continue to devote dress violations of banking laws and regulations adequate resources to on-site examinations and and to prevent unsafe and unsound banking other critical supervisory functions. It is also practices. Recently enacted provisions of essential that we take any steps necessary to FIRREA should provide additional tools to limit attract and retain qualified field examiners and bank risk-taking. Among other things, this legissupervisory personnel. lation contains provisions that call for the imple- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

744 Federal Reserve Bulletin • November 1989 mentation of minimum collateral requirements protection to the bank, since any problems of the for real estate loans, the establishment of appro- subsidiary would be transmitted immediately to priate appraisal standards for real estate loans, the consolidated financial statements of the parthe prohibition of the use of brokered deposits by ent bank. That bank subsidiary structure also troubled institutions, and the expansion and seems more vulnerable to legal challenges by strengthening of the banking agencies' enforce- creditors of the subsidiary to "pierce the corpoment authority. rate veil" and attach assets of the parent bank. Organizational Structures. The final issue I will mention relates to the structure through which CONCLUSION banking organizations should properly conduct any activities that carry risks not traditionally In summary, it is our view that the bank insurassociated with banks, or activities that, as a ance fund has weathered a very difficult period matter of public policy, should not be supported and, while it remains sound, will benefit from the by the federal safety net. The focus here is not on much-needed additional resources provided by any specific banking powers, but rather on how FIRREA. Further changes and proposals for best to limit risks to the federal safety net when strengthening the deposit insurance system may distinctions between banks and other financial come from the study required by that legislation. companies are becoming blurred. There are sev- In our view, for the system to remain sound it eral organizational possibilities: (1) permit the must be governed by an adequate supervisory bank to perform the activity directly; (2) permit framework that strikes the proper balance bethe bank to perform the activity only indirectly tween reasonable prudential rules, such as minithrough a subsidiary of the bank; or (3) require mum capital standards, and an adequate on-site the activity to be conducted outside the bank in a supervision and examination program. It is, of separate subsidiary of the bank holding com- course, in the interests of both the Congress and pany. the regulatory agencies to work in a cooperative As a rule, the Federal Reserve believes that fashion to establish all of the components necesthe third approach provides the greatest protec- sary to protect the stability of our nation's finantion to any affiliated bank(s) and, in turn, offers cial system and the health of our deposit insurthe most protection to the deposit insurance fund ance funds. Much progress has been made with and to the federal safety net more generally. the enactment of FIRREA, and we look forward Isolating such activities in subsidiaries of banks, to working with the Congress on further necesthe second option, seems to offer only limited sary steps in the future. • Statement by Manuel H. Johnson, Vice Chair- circulation of goods, services, capital, and peoman, Board of Governors of the Federal Reserve ple. The actions are intended to exert downward System, before the Subcommittee on Financial pressures on costs and prices, and as greater Institutions Supervision, Regulation and Insur- competition fosters increased economic effiance of the Committee on Banking, Finance and ciency, to raise the level of output within the Urban Affairs, U.S. House of Representatives, Community. Residents of other countries, in- September 26, 1989. cluding the United States, have an interest in how these events unfold because of their impor- I appreciate the opportunity to appear before this tant trade and financial relations with the Comsubcommittee to discuss the implications for munity. A stronger European economy should U.S. financial institutions of plans by the Euro- benefit the United States and other nations that pean Community (EC) to complete its internal trade with Europe. market at the end of 1992. These plans involve The moves to a barrier-free internal market by removing remaining internal barriers to the free the European Community will, of course, be felt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 745 most profoundly by citizens and businesses of license from host-country regulatory bodies. The the Community. While the full impact of these host country will, however, retain the right to actions will not be felt for a number of years, establish regulations for such branches that are corporations in the Community have been ac- needed for the implementation of monetary poltively engaged in planning the restructuring of icy, assuming such regulations are applied contheir activities in anticipation of the new operat- sistently to all banks operating in that country. ing environment. A feature of the new banking framework is that The current situation is one in which all tariff banks permitted by their home country to engage barriers within the Community have been dis- in a list of activities delineated in the Second mantled for more than two decades. The elimi- Banking Directive would be permitted to engage nation of intra-Community tariffs has contributed in such activities anywhere in the Community, greatly to European economic prosperity, just as even if such activities were prohibited to locally the absence of interstate barriers to trade has chartered banks. For example, a bank permitted enhanced U.S. economic welfare. It is impres- to underwrite and deal in corporate securities in sive that the European countries already have its home country would be permitted to do so in been able to achieve many of these same effi- any member state within the Community, even if ciencies associated with free trade, and will build local banks in a host member state were prohibfurther on these steps, within the context of ited from such securities activities themselves. sovereignty of the individual nation states. This explicit right of expanded activities for The 1992 program focuses on removing re- nonlocal banks, based on activities permitted in maining barriers to intra-Community trade that their home country, has no precedent in internaresult from a variety of nontariff barriers, such as tional banking. It will need to be monitored differences in national rules or laws regarding closely because it may have important implicaproduct standards. Such differences may effec- tions for the types of European-based financial tively prohibit products made in one Community institutions that will emerge as major competitors country from being exported to another. To deal with U.S. banks. with the remaining barriers to trade within the The implications for U.S. financial institutions EC the Community has opted to apply the con- of these important and innovative steps to intecept of "mutual recognition," whereby member grate the financial sector of the European econstates agree to respect the validity of each others' omy would appear to depend on the answers to at laws, regulations, and administrative practices least three questions. First, what will be the that have not been harmonized at the Community impact on costs, margins, and profitability of level. In essence the member states have pledged financial institutions operating in the Communot to use differences in national rules to restrict nity? Second, what types of financial institutions cross-border flows of goods and services. will evolve after the emergence of the European The philosophy of mutual recognition adopted financial area as major competitors with U.S. by the Community has been extended to the banks in both European and worldwide financial banking and financial sector through proposals markets, and how will these institutions differ for the creation of a "European financial area," from large U.S. banks? Third, what will happen which refers to both the free movement of capital regarding the right of entry and expansion for and the establishment of a framework for a foreign-based financial institutions in the new Community wide market in financial services. operating environment in Europe? Under this system, financial institutions char- Before discussing these three issues some tered by any individual member nation will be background on the current situation and the deemed by other member states to be adequately scope of activities of U.S. banks in the countries supervised on a consolidated basis by their home of the Community might be helpful. As discussed country in accordance with requirements set in detail in the National Treatment Studies subforth in EC directives, and therefore will be mitted to the Congress in 1979, 1984, and 1986, permitted to branch freely throughout the Com- U.S. banks have generally been relatively free to munity without the need to seek approval or enter and compete in the major European mar- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 Federal Reserve Bulletin • November 1989 kets and have taken advantage of these opportu- ever, it seems reasonable to conclude that marnities. As shown in the attached table, as of gins and profits in local European banking will be December 1988, U.S. banks operated 149 reduced because of greater direct competition or branches in the countries of the Community with because of potential competition from outside total assets of $130 billion.1 On that same date, 17 banks who will be free to enter if margins and U.S. banking organizations had majority-owned profits in local markets are particularly attracsubsidiaries in Europe with total assets of $80 tive. billion. These subsidiaries conduct banking ac- Some European banks are reacting to these tivities and nonbanking activities of a financial expected developments by mergers, acquisinature. The nonbanking activities include under- tions, and strategic operating alliances through writing debt securities and, under very narrow banking groups, all of which should result in limits, equity securities, to the extent permitted some operating efficiencies. These developments by U.S. laws and regulations and where autho- will mean reduced profit margins on certain types rized by local law for affiliates of banking orga- of business for European offices of U.S. banks as nizations. The major determinants of the deci- well as for local banks. While some U.S. banks sions by U.S. banks to enter and participate in may compete aggressively in the broader Eurothese markets appear to have been threefold: (1) pean market, several U.S. banks have already to provide banking services to U.S.-based com- announced their decisions to restructure their panies with major European operations; (2) to activities in that market and, on balance, the profit from opportunities where margins on local expected reduction in profit margins on banking banking business are attractive, sometimes in an in Europe should result in some further consoliarea where they had specialized expertise; and dation and retrenchment by U.S. banks in their (3) to participate in the Eurocurrency and Euro- European operations. bond markets that are primarily located in Lon- The retrenchment by some U.S. banks in don. response to lower profit margins may take place The decision by the European Community to over a relatively short period of time. Over the create a European financial area will certainly longer run, the reduced margins on banking that mean that the financial services sector within are expected to occur in Europe may actually Europe will become more competitive, as low- induce some European banking organizations to cost producers of banking and other financial restructure their activities, and it is indeed posservices are freer to enter and compete with sible that some will devote greater resources to higher-cost local firms that have operated in expanding their banking activities here in the protected local markets. One study cited in a United States as well as in other markets outside report by the Commission of the European Com- Europe if these markets are perceived to offer munities (the Cecchini report) used estimates of better returns. Declining profit margins on finanthe costs of providing financial services in the cial intermediation that result from greater comfour lowest-cost countries as a rough benchmark petition in Europe, while painful to banks and for how far intermediation costs might fall fol- their shareholders, are of direct benefit to the lowing integration, and concluded that interme- broader market of consumers of banking services diation costs might decline on the order of and constitute a large part of the expected effislightly more than 10 percent in the Community ciency gains from the further integration of the after integration. Analysts may disagree with the European market. methodology used in that study, and its quanti- The second issue confronting U.S. financial tative results may be biased by cases in which institutions is the types of indigenous competithe estimates of lowest costs contain observa- tors that will emerge within the European Comtions with an element of a cross-subsidy. How- munity. Banks in several European countries are permitted wider powers than U.S.-based banks, including the ability to underwrite both debt and 1. The attachments to this statement are available on equity securities on an unlimited basis directly request from Publications Services, Board of Governors of within the bank without having to establish septhe Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 747 arate holding-company affiliates whose activities activities abroad that could present undue finanare restricted and separated from the banks by cial risk or otherwise potentially harm the safety firewalls. The plans by the Community to allow and soundness of the banking institution. banks established in member states to provide The resolution of this evolving divergence becertain services throughout the Community that tween the United States and Europe regarding are permitted in their home country, even if permissible activities for banking organizations prohibited to domestically chartered banks in a that operate behind an explicit or implicit taxspecific host country, should create pressures for payer supported safety net is uncertain. Over the some of the more restrictive member states of the foreseeable future major U.S. banks will be Community to liberalize their banking laws and competing on a worldwide basis with large Euregulations in these areas. This process is well ropean banks that will be able to conduct a understood by the member states and is referred broad-based securities business and will have to as regulatory convergence. greater flexibility than U.S. banks to own shares The ultimate result of this process of regula- of nonfinancial companies. Until the consetory convergence is difficult to predict at this quences of this disparity are better understood, stage. To some degree it seems likely that U.S. we should not lose sight of the fact that our own banks will be confronted with competition from supervisory policy of separating the deposit side several of the large well-capitalized banks based of banking, with its safety net protection, from in Europe that will be able to offer a broader other kinds of financial businesses with different range of financial services to their customers. risks, has served this country well. On the other This structure will differ markedly from our own hand, we must be alert to any long-term competstructure in the United States. We have either itive difficulties that it may pose for U.S.-based prohibited institutions that accept deposits from institutions as we consider and debate our own the public from engaging in certain types of policies for broadening the range of permissible activities, or permitted some of them only activities for U.S. banks. The Federal Reserve through holding company affiliates with firewalls and other banking agencies will monitor the between the banking and nonbanking activities. competitive situation carefully, here and abroad, The reason for the firewalls applied between and where necessary will draw upon our contacts U.S. banks and their domestic securities affiliates with banking authorities in other countries for is to ensure that the federal safety net is not information. extended to these affiliates and that bank holding The third issue for U.S. financial institutions, company affiliates do not have an unfair compet- and the one that has drawn the most attention itive advantage vis-a-vis their unaffiliated com- recently, is the conditions under which banks petitors. based in countries outside the Community, in- Outside the United States there is a different cluding U.S.-chartered banks, will be permitted statutory basis for U.S. bank activities. Abroad, to enter and expand into that broad market. As U.S. banks are permitted to engage in banking background to discussing this complex issue it and nonbanking activities, including, as I have should be noted that the United States has a already stated, debt underwriting and very lim- policy of national treatment for banking that was ited equity underwriting, through subsidiaries of established in the International Banking Act of Edge corporations that are in turn subsidiaries of 1978 (IBA). National treatment means providing the bank or through subsidiaries of the parent foreign institutions the same competitive opporholding company. Subsidiaries of the bank may tunities that are permitted to domestic banking engage in nonbanking activities only to the extent companies. that the Board finds the activities to be closely The United States adopted that policy after related to banking or other financial activities. careful consideration of various alternatives. We This standard imposed by the Edge Act was adopted that policy in the belief that it was intended to allow U.S. banks to compete effec- equitable, that it would serve as a good example tively abroad; however, the Board has not al- to other countries whose banking systems were lowed U.S. banking organizations to engage in not as open to foreign banks as our markets, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 Federal Reserve Bulletin • November 1989 because we perceived the benefits to our own The European Community has also had a financial system of a dynamic participation by lengthy debate about its treatment of foreignforeign-based banks. based banks in the broad financial area that will This last reason, the unilateral benefits we as a be created by the measures scheduled to be nation of consumers of banking services derive implemented at the end of 1992. Our best reading from open markets, underlies our policy of not of their intention is that the Community plans to requiring reciprocal foreign treatment for U.S. adopt a policy of what is usually referred to as banks. However, the Treasury, the Federal Re- "reciprocal" national treatment on a Communiserve, and other federal banking agencies have ty wide basis. Under that policy, countries ofbeen sensitive to the need to ensure that U.S. fering national treatment to all Community-based banks receive equitable treatment in foreign mar- banks will be offered national treatment for their kets. The Congress has required that the Trea- banks throughout the Community. While less sury, with the cooperation of other agencies, desirable than a policy of pure national treatment including the Federal Reserve, conduct and pub- without any preconditions, the policy of reciprolish National Treatment Studies that highlight cal national treatment should not, if implemented existing cases in which foreign countries restrain fairly, present significant problems for U.S.entry and expansion by nonlocal banks including based banks because of our longstanding com- U.S. banks. A new National Treatment Study is mitment to national treatment for foreign banks under way and will be completed in 1990. That in the United States. study will contain a chapter analyzing the bank- As we learned in our experience with the IB A, ing and securities markets in the European Com- however, the concept of national treatment does munity. Besides the National Treatment Studies, not always provide simple answers to a number formal and informal contacts between U.S. bank- of complex policy issues when banking systems ing officials and their counterparts in other coun- and structures differ widely across countries. tries have also been used as a vehicle to highlight One example arose when the Congress was conproblems of entry to local markets. fronted with adopting the statutory standard for The results of the approach taken by the the IBA for the nonbanking activities of foreign United States have generally been successful, banks with U.S. operations. After a lengthy and both for the operation of our domestic banking complex debate, the Congress permitted nonand financial markets and for improving access banking affiliates of foreign banking organizafor U.S. banks to foreign markets. U.S. offices of tions to operate in the United States, even foreign-based banks have brought innovations to though U.S. banks are not permitted to have the our domestic market, including pressures to same kind of domestic affiliations, to avoid an price loans off market interest rates. Interbank unintended application of U.S. law on an extradeposit markets and foreign exchange markets in territorial basis to banks chartered in countries the United States have been deepened by foreign that permit direct ownership by banks of nonfibank participation, and in some areas retail bank- nancial companies. ing has become more competitive because of A second example arose more recently in the foreign bank participation. requirement in the Primary Dealers Act of 1988 In recent years a number of industrial coun- for the Federal Reserve to determine whether tries have followed our example and have liber- foreign countries offered U.S. securities firms the alized their laws and regulations concerning for- same competitive opportunities in government eign bank access to their domestic markets. securities markets as are offered to domestic These liberalizations have occurred largely firms. The staff analysis on which the Board through a recognition of the need to improve based its decision that U.S. firms are offered the their own domestic banking and financial mar- same competitive opportunities in the governkets, partly in recognition of the success of the ment securities markets in Japan and the United U.S. experience. In some cases these liberaliza- Kingdom noted explicitly that "the concept of tions have followed constructive dialogues with 'same competitive opportunities' does not re- U.S. and other foreign banking agencies. quire that every country adopt a structure for its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 749 government securities market that is identical to the U.S. negotiating agenda for the forthcoming ours, any more than we should be required to meetings on trade in financial services. adopt a banking structure identical to theirs." A final area that deserves mention is the impli- One important lesson in both of these cases is cations of the plans by the Community for the that differences in national banking and financial post-1992 era for banking supervision. Over the structures can make determinations of national last decade and a half bank supervisory issues treatment and equal competitive opportunity have become increasingly international in scope. very complicated. The second, and perhaps even This is certainly appropriate as international more important lesson, is that different struc- banking and financial markets have become more tures in foreign markets should not be used as an integrated and as large banks conduct an increasexcuse for denying foreign banks equal compet- ing share of their activities in offices outside their itive opportunity in a domestic market. In partic- home country and in foreign currencies. When ular, restrictions on types of activities or geo- possible, regulatory systems need to avoid comgraphic locations of banking offices adopted by petitive inequities, and bank supervisors need to the United States for reasons of public policy, be able to share information on a confidential and which apply to U.S. banks as well as to basis. The Basle Committee of Bank Supervisors foreign-based banks operating in the United has performed these functions admirably. The States, constitute national treatment and equal recent agreement on risk-based capital standards competitive access, and therefore are not rea- achieved by that Committee, and scheduled to be sons to restrict national treatment for U.S. banks fully implemented by participating countries by abroad. the end of 1992, is a major accomplishment in As a practical matter, major U.S. banking reducing one area of competitive inequity. organizations are already well represented in the The movement toward a European financial European Community through branches and sub- area may well mean that additional pressure will sidiaries, and access of many of them to the be exerted within the Community for further entire Community will be grandfathered through harmonization of bank supervisory and regulatheir subsidiaries. However, the structure of the tory practices. Decisionmaking in financial serownership of banking in the United States is vices generally may flow increasingly from indirapidly changing, and we are seeing the emer- vidual national authorities within the Community gence of several active regionally based banking to a Community-based body, just as it has in the institutions in the list of our largest banks. Many case of commercial policy. This process appears of these institutions do not currently operate to be under way already as bank supervisors subsidiaries in the Community and their future from Community countries have been meeting access to that market is an important matter of regularly for several years. For U.S. bank superpublic concern. visors, as well as bank supervisors from Japan, The question of access by foreign banks to the Canada, and other non-EC countries, this change European financial area is coming at a critical may well mean that various issues discussed in time because services, including financial ser- the Basle Committee will have already been vices, are included in the upcoming Uruguay discussed by an EC body and that there will be a Round of trade negotiations. These negotiations greater unity of positions taken by representawill involve a broad group of developing coun- tives of EC countries in meetings of the Basle tries as well as the major industrial nations. We Supervisors Committee. hope to utilize this important opportunity to In summary, the prospects for improved Euachieve a liberalization of trade in financial ser- ropean integration offer potential benefits for vices through a national treatment approach. non-European nations that trade with the Com- That goal might be more readily achieved if a munity as well as for the member states. Whether major precedent restricting the free flow of ser- these potential benefits are realized depends on vice trade were avoided. Because of our long- whether the measures are implemented in a manstanding interest and expertise in this area, the ner that is trade-creating or whether they are Federal Reserve has been involved in developing instead offset by restrictive measures directed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 Federal Reserve Bulletin • November 1989 toward firms in countries outside the Commu- cannot predict exactly which activities will be nity. At present we do not anticipate any prob- found to be profitable by U.S. financial firms, I lems of access for U.S. banks into the Commu- am confident that our financial service firms are nity, but the Federal Reserve and other agencies capable of being competitive in that new environwill monitor the situation closely. The reduction ment. The Federal Reserve, together with the in profit margins in banking that is expected to Treasury and the other federal banking agencies, occur in Europe will play a very important role in will do our part to help to ensure that unfair determining the nature of future activities of both impediments to U.S. firms will not occur or foreign and local banks in that market. While I persist. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

751 Announcements REGULATION Y: AMENDMENT thorizing bank holding company subsidiaries to underwrite and deal in bank-eligible securities The Federal Reserve Board announced on Sep- consistent with section 20 of the Glass-Steagall tember 5, 1989, that it had amended Regulation Y Act. (Bank Holding Companies and Change in Bank The modifications accomplish the following: Control) to allow bank holding companies to acquire savings associations in accordance with • They raise from 5 to 10 percent the revenue provisions of the Financial Institutions Reform, limit on the amount of total revenues a section Recovery and Enforcement Act of 1989. 20 subsidiary may derive from ineligible secu- The amendment contains the following provi- rities underwriting and dealing activities. sions: • They permit underwriting and dealing in securities of affiliates if the securities are rated • It permits acquisitions of healthy as well as by a nonaffiliated, nationally recognized rating failed or failing savings associations. organization or are issued or guaranteed by the • It allows bank holding companies to acquire Federal National Mortgage Association, the savings associations in any state, without regard Federal Home Loan Mortgage Corporation, or to whether the holding company can operate a the Government National Mortgage Associabank in that state. tion, or represent interests in such obliga- • It does not impose operational or branching tions. conditions on the operations of savings associations except for the requirement of the Bank Holding Company Act that they conform their activities to those permissible for bank holding companies. CHANGE IN BOARD STAFF The amendment is effective October 10, 1989. The Board of Governors announced that David J. MODIFICATIONS TO SECTION 20 ORDERS Stockton has been promoted from Assistant Director to Associate Director in the Division of The Federal Reserve Board announced on Sep- Research and Statistics, effective September 29, tember 21, 1989, modifications in its orders au- 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

753 Legal Developments FINAL RULE—AMENDMENT TO REGULATION Y and lending and other activities that are permissible for bank holding companies under this subpart C. In light of changed economic and regulatory circumstances, and pursuant to discretionary authority 3. In section 225.2, redesignate paragraphs (1) through granted under the Financial Institutions Reform, Re- (n) as paragraphs (m) through (o) respectively, and add covery and Enforcement Act of 1989, the Board of the following as new paragraph (1): Governors is amending 12 C.F.R. Part 225, its Regulation Y, to reflect its determination that the acquisi- Section 225.2—Definitions tion and operation of savings associations by bank holding companies is, as a general matter, so closely related to banking as to be a proper incident thereto for (1) "Savings association" means: purposes of section 4(c)(8) of the Bank Holding Com- (1) any Federal savings association or Federal savpany Act ("BHC Act") (12 U.S.C. 1843(c)(8)). The ings bank; Board's determination is subject to the condition that (2) any building and loan association, savings and the savings association engage only in activities that loan association, homestead association, or cooperbank holding companies are otherwise permitted to ative bank if such association or cooperative bank is conduct under section 4 of the BHC Act. Specific a member of the Savings Association Insurance proposals by bank holding companies to acquire sav- Fund; and ings associations would require prior Board approval (3) any savings bank or cooperative which is deemed under section 4(c)(8) of the Act. by the Director of the Office of Thrift Supervision to Effective October 10, 1989, 12 C.F.R. Part 225 is be a savings association under section 10(1) of the amended as follows: Home Owners Loan Act. Part 225—Bank Holding Companies and 4. In section 225.126, paragraph (h) is removed. Change in Bank Control 1. The authority citation for Part 225 continues to read FINAL RULE—AMENDMENT TO RULES as follows: REGARDING DELEGATION OF AUTHORITY Authority: 12 U.S.C. 1817(j)(13), 1818, 1843(c)(8), The Board of Governors is amending 12 C.F.R. Part 1844(b), 3106, 3108, 3907, and 3909. 265, its Rules Regarding Delegation of Authority, to delegate to the Staff" Director of the Division of Banking Supervision and Regulation the authority to ap- Part 225—Bank Holding Companies and prove applications requiring prior approval of the Change in Bank Control Board if immediate or expeditious action is required to avert failure of a savings association. 2. In Section 225.25 new paragraph (b)(9) is added to Effective September 18, 1989, 12 C.F.R. Part 265 is read as follows: amended as follows: Section 225.25—List of Permissible Part 265—Rules Regarding Delegation of Nonbanking Activities Authority 1. The authority citation for Part 265 continues to read (b) * * * as follows: (9) Operating savings association. Owning, controlling or operating a savings association, if the savings Authority: Section ll(k), 38 Stat. 261 and 80 Stat. association engages only in deposit taking activities 1314; 12 U.S.C. 248(k). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 Federal Reserve Bulletin • November 1989 2. Paragraph (c)(3) of § 265.2 is revised to read as has considered the application and all comments refollows: ceived in light of the factors set forth in section 3(c) of the BHC Act. Section 265.2—Specific functions delegated to National City operates 16 banking subsidiaries lo- Board employees and to Federal Reserve cated in Ohio, Kentucky, and Indiana. National City is Banks the second largest commercial banking organization in Kentucky, controlling approximately $3.3 billion in deposits, representing 12.2 percent of the total depos- (c) * * * its in commercial banking organizations in the state.2 (30) Under the provisions of sections 3(a) and 4(c)(8) Crestwood is the 98th largest commercial banking of the Bank Holding Company Act (12 U.S.C. organization in Kentucky, controlling approximately 1842(a) and 1843(c)(8)) and the Change In Bank $54.4 million in deposits, representing less than one Control Act (12 U.S.C. 1817(j)) to take actions the percent of the total deposits in commercial banking Reserve Bank could take under paragraphs (f)(22) organizations in the state. Upon consummation of this and (f)(28) of this section if immediate or expeditious proposal, National City would remain the second action is required to avert failure of a bank or largest commercial banking organization in Kentucky, savings association, or because of an emergency. controlling $3.4 billion in deposits, representing 12.4 percent of the total deposits in commercial banking organizations in the state. Consummation of this proposal would not have a significant adverse effect on the concentration of banking resources in the state. ORDERS ISSUED UNDER BANK HOLDING National City and Crestwood compete directly in COMPANY ACT the Louisville banking market.3 National City is the second largest of the 15 commercial banking organiza- Orders Issued Under Section 3 of the Bank tions in this market, controlling approximately $2.6 Holding Company Act billion in deposits, representing 29.2 percent of the total deposits in commercial banking organizations in National City Corporation the market. Cleveland, Ohio Crestwood is the ninth largest commercial banking organization in the market, controlling approximately Order Approving the Acquisition of a Bank Holding $54.4 million in deposits, representing less than one Company percent of total deposits in commercial banking organizations in the market. Upon consummation of the National City Corporation, Cleveland, Ohio ("Nation- proposal, National City would remain the second al City"), a bank holding company within the meaning largest commercial banking organization in the marof the Bank Holding Company Act of 1956 ("BHC ket, controlling $2.7 billion in deposits, representing Act"), has applied for the Board's approval pursuant 29.8 percent of the total deposits in commercial bankto section 3(a)(3) of the BHC Act (12 U.S.C. ing organizations in the market. The Herfindahl- § 1842(a)(3)) to acquire 100 percent of the voting Hirschman Index ("HHI") for the Louisville banking shares of Crestwood Banking Company, Ltd., Crest- market would increase by 35 points to 2657.4 wood, Kentucky ("Crestwood"), and thereby indirectly acquire Crestwood State Bank, Crestwood, Kentucky ("Bank").1 2. State banking data and market banking data are as of June 30, 1988. Notice of the application, affording interested per- 3. The Louisville banking market is approximated by the Louisville sons an opportunity to submit comments, has been RMA adjusted to include Jefferson and Oldham Counties in Kenpublished (54 Federal Register 26,842 (1989)). The tucky, and Clark and Floyd Counties in Indiana. 4. Under the revised Department of Justice Merger Guidelines, time for filing comments has expired, and the Board 49 Federal Register 26,823 (1984), a market in which the post-merger HHI is above 1800 is considered highly concentrated. In such markets, the Justice Department is likely to challenge a merger that 1. In connection with this application, National City's subsidiary, increases the HHI by more than 50 points. The Justice Department First Kentucky National Corporation, Louisville, Kentucky ("First has informed the Board that a bank merger or acquisition generally Kentucky"), has formed CSB Acquisition Corporation, Louisville, will not be challenged (in the absence of other factors indicating Kentucky ("CSB"), for the purpose of acquiring Crestwood, and anti-competitive effects) unless the post-merger HHI is at least 1800 thereby indirectly acquiring Bank. First Kentucky has filed an appli- and the merger increases the HHI by at least 200 points. The Justice cation to acquire shares of a bank holding company pursuant to Department has stated that the higher than normal HHI thresholds for section 3(a)(3) of the BHC Act, and CSB has filed an application to screening bank mergers for anti-competitive effects implicitly recogbecome a bank holding company pursuant to section 3(a)(1) of the nizes the competitive effect of limited-purpose lenders and other BHC Act. non-depository financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 755 Accordingly, based upon a review of all of the facts tion process to review an institution's CRA compliof record, the Board concludes that consummation of ance and performance. this proposal would not have a significantly adverse Initially, the Board notes that National City's subeffect on competition in any relevant market. In addi- sidiary banks have each received satisfactory ratings tion, the financial and managerial resources of Na- from their primary regulators in examinations of their tional City, Crestwood, and their respective subsidiar- CRA performance. In addition, National City has in ies are consistent with approval. place the types of programs outlined in the CRA Policy In considering the convenience and needs of the Statement as essential to an effective CRA program. communities to be served, the Board has taken into National City has established a Public Policy Commitaccount the record of National City's subsidiary banks tee in order to monitor the CRA initiatives and activunder the Community Reinvestment Act ("CRA"). ities of its subsidiary banks. National City has also The CRA requires the federal financial supervisory adopted a management policy that details the stanagencies to encourage financial institutions to help dards and responsibilities of each subsidiary bank to meet the credit needs of the local communities in address the CRA. These standards require each of which they operate, consistent with the safe and sound National City's subsidiary banks to maintain its own operation of such institutions. To accomplish this end, CRA program and to establish a management public the CRA requires the appropriate federal supervisory policy committee at the bank and public policy comauthority to "assess an institution's record of meeting mittee for the board of directors. In addition, each the credit needs of its entire community, including bank must designate a CRA officer and assess the low- and moderate-income neighborhoods, consistent credit needs of each community through contacts with with the safe and sound operation of the institution," local officials and community organizations. Under and to "take this record into account in its evaluation this policy, the CRA officer of each of National City's of bank holding company applications."5 subsidiary banks reports to the bank's board of direc- In this regard, the Board has received comments tors, which annually reviews the bank's CRA record filed by an individual ("Protestant") critical of the and CRA policy statement. Each CRA officer of each CRA performance of National City's subsidiary bank, of National City's subsidiary banks is supervised by The First National Bank, Dayton, Ohio ("FNB"). National City's corporate CRA officer, who in turn Protestant alleges that FNB has shown a lack of reports to National City's senior management. commitment to low- and moderate-income minority In addition, FNB has a program to help meet the neighborhood markets in the Dayton, Ohio area. In needs of its community as well as monitor the success particular, Protestant asserts that FNB did a signifi- of its efforts. Coordination and oversight of the CRA cantly smaller percentage of its mortgage business in program at FNB is provided by the Management low- to moderate-income and minority areas than to Policy Committee, which develops CRA initiatives other lenders in Montgomery County, Ohio. National and goals, and the Public Policy Committee of FNB's City has submitted a detailed response to the com- board of directors, which monitors and assists in the ments made by Protestant.6 development of these initiatives, and which reports The Board has carefully reviewed the CRA perfor- annually to National City. FNB seeks to ascertain the mance record of FNB, as well as Protestant's com- needs of the community through participation by its ments and National City's response to those com- employees, officers, and directors in a variety of ments, in light of the CRA, the Board's regulations, community organizations and activities. FNB also has and the jointly issued Statement of the Federal Finan- a vice-president designated as its CRA officer. The cial Supervisory Agencies Regarding the Community CRA officer is responsible for making calls in the low- Reinvestment Act ("CRA Policy Statement").7 The to moderate-income areas of Dayton, Ohio, to elected CRA Policy Statement provides guidance regarding officials, realtors, clergy, and neighborhood leaders. the types of policies and procedures that the supervi- The CRA program implemented by FNB has a sory agencies believe financial institutions should have community outreach component that calls for ongoing in place in order to fulfill their responsibilities under community contact by departmental staff regarding the the CRA on an ongoing basis, and the procedures that needs of the community and the products and services the supervisory agencies will use during the applica- that FNB offers to meet these needs. The outreach component of FNB's CRA program includes advertising in traditional and minority-owned media. FNB has 5. 12 U.S.C. § 2903. also contracted with a public relations firm which 6. FNB has met with Protestant in an effort to clarify the issues specializes in reaching minority markets in order to presented under the CRA, although the parties failed to resolve all of ensure that low- and moderate-income and minority their differences. 7. 54 Federal Register 13,742 (1989). areas are aware of the services that FNB offers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 Federal Reserve Bulletin • November 1989 Protestant bases his comments on an analysis of addition, FNB has established the First National Bank property conveyance information rather than Home Community Development Association ("FNBCDA"), Mortgage Disclosure Act ("HMDA") data provided which assists in the stabilization and revitalization of by regulated mortgage lenders.8 An analysis of HMDA low- to moderate-income neighborhoods and minority data for FNB for 1987 does not support the allegation areas in which FNB operates by providing loan and that FNB falls significantly below its peers in residen- equity investments for low-income housing revitalizatial lending to low- and moderate-income areas. While tion and development. Since its inception in Novemother lenders made 6.0 percent of their mortgage loans ber of 1987, FNBCDA has participated in over $2.8 to individuals in low- to moderate-income areas in million of community revitalization projects by assist- 1987, FNB also made 6.0 percent of its mortgage loans ing in the financing of projects for the purchase, to individuals in low- to moderate-income areas.9 construction, and renovation of housing in low- to Similarly, FNB's figure of 2.0 percent for mortgages in moderate-income areas, and for the operation of small minority and integrated areas compares favorably with businesses. the 3.0 percent figure for all other lenders. With regard For the foregoing reasons, and based upon the to home improvement loans, other lenders made 15.0 overall CRA record of National City and of FNB, the percent of their home improvement loans to individu- compliance of FNB's CRA statement with applicable als in low- to moderate-income areas, while FNB regulations, and other facts of record, the Board made 33.0 percent of its home improvement loans to concludes that convenience and needs considerations, individuals in low- to moderate-income areas. Like- including the record of performance under the CRA of wise, FNB made 30.0 percent of its home improve- National City, FNB and National City's other subsidment loans to individuals in minority and integrated iary banks, are consistent with^approval of this appliareas, which greatly exceeds the 12.0 percent figure cation. presented by all other lenders. Based on the foregoing and other facts of record, the FNB has also begun offering FHA and VA govern- Board has determined that the application should be, ment guaranteed mortgages in response to comments and hereby is, approved. The acquisition of Crestfrom realtors expressing a need for mortgages with wood shall not be consummated before the thirtieth lower down-payment requirements. In addition, FNB calendar day following the effective date of this Order, is an active participant in Small Business Administra- or later than three months after the effective date of tion loans. Moreover, the types of services and pro- this Order, unless such period is extended for good grams that FNB offers appear to be consistent with the cause by the Board or by the Federal Reserve Bank of purposes of the CRA. Such programs include loans for Cleveland, acting pursuant to delegated authority. new home construction and purchase or rehabilitation By order of the Board of Governors, effective of existing residences through three loan programs September 18, 1989. offered in conjunction with the City of Dayton Department of Housing; low interest loans for first time Voting for this action: Vice Chairman Johnson and Goverbuyers through the Ohio Financing Agency's Series B nors Seger, Angell, Kelley, and LaWare. Absent and not voting: Chairman Greenspan. and Series C First Time Home Buyer Program; and mortgage loans for renters that desire to purchase JENNIFER J. JOHNSON homes in conjunction with the Dayton Metropolitan Associate Secretary of the Board Housing Authority. FNB is also active at both the city and county levels through participation in special loan Security Pacific Corporation programs with City Wide Development Corporation, Los Angeles, California which is the economic development arm of Dayton, Ohio, and with County Corp, which is the economic Order Approving the Acquisition of a Bank Holding development arm of Montgomery County, Ohio.10 In Company Security Pacific Corporation, Los Angeles, California 8. The Board believes that the use of HMDA data provides a reasonable basis for determining National City's and FNB's lending ("Security Pacific"), a bank holding company within records under the CRA and permits the Board to compare National City's and FNB's performance to other financial institutions. 9. Because Protestant's allegations relate to mortgage lending in Montgomery County, Ohio, the percentages used here reflect lending are new, National City and FNB have had their current CRA patterns in Montgomery County, Ohio, based on all HMDA lenders in programs in place since March 1987, and have taken steps to respond Montgomery County, Ohio. to identified community credit needs. The Board expects that National 10. Protestant further alleges that FNB's recent community efforts City will continue to fulfill its responsibilities under the CRA, and may receive only short term support in order to permit National City notes that, as with other financial institutions, National City's CRA to proceed with a series of acquisitions. While some of its programs performance will be reviewed in the course of regular examinations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 757 the meaning of the Bank Holding Company Act (the zation, controlling approximately $17.9 billion in de- "BHC Act"), has applied for the Board's approval posits, representing approximately 20.6 percent of the under section 3 of the BHC Act (12 U.S.C. § 1842) to total deposits in commercial banks in the market. acquire Southwest Bankcorp, Vista, California Southwest is the 132nd largest commercial banking ("Southwest"), and thereby to acquire indirectly organization in the market, controlling approximately Southwest's subsidiary bank, Southwest Bank, Vista, $41.7 million in deposits, which represents less than California ("Bank").1 one percent of total deposits in commercial banks in Notice of the applications, affording interested per- the market. Upon consummation of the proposal, sons an opportunity to submit comments, has been Security Pacific would remain the second largest compublished (54 Federal Register 20,921 (1989)). The mercial banking organization in the market, controltime for filing comments has expired, and the Board ling approximately $18.0 billion in deposits, representhas considered the applications and all comments ing approximately 20.7 percent of the total deposits in received in light of the factors set forth in section 3(c) commercial banks in the market. As a result of this of the BHC Act.^ transaction, the Herfindahl-Hirschman Index Security Pacific is the third largest commercial ("HHI") for the Los Angeles banking market would banking organization in California, controlling approx- increase by 2 points to 1130.5 imately $27.2 billion in deposits, representing 13.8 In the San Diego City banking market,6 Security percent of the total deposits in commercial banks in Pacific is the third largest commercial banking organithe state.3 Southwest is the 45th largest commercial zation, controlling approximately $1.4 billion in deposbanking organization in California, controlling approx- its, representing approximately 12.7 percent of the imately $289.8 million in deposits, representing less total deposits in commercial banks in the market. than one percent of the total deposits in commercial Southwest is the 14th largest commercial banking banks in the state. Upon consummation of this pro- organization in the market, controlling approximately posal, Security Pacific would remain the third largest $117 million in deposits, representing approximately commercial banking organization in California, con- 1.1 percent of the total deposits in commercial banks trolling $27.5 billion in deposits, representing 13.9 in the market. Upon consummation of this proposal, percent of the total deposits in commercial banks in Security Pacific would remain the third largest comthe state. Consummation of this proposal would have mercial banking organization in the market, controlno substantial effect on the concentration of banking ling approximately $1.5 billion in deposits, representresources in the state. ing approximately 13.8 percent of the total deposits in Security Pacific and Southwest compete directly in commercial banks in the market. The HHI for the San the following five banking markets in California: Los Diego City banking market would increase by 27 Angeles, San Diego City, San Diego County, Hemet, points to 1112. and Oceanside. In view of these and the other facts of record, the In the Los Angeles banking market,4 Security Pa- Board has determined that consummation of this procific is the second largest commercial banking organi- posal would not have a significant adverse effect on competition in the Los Angeles or San Diego City banking markets. 1. Security Pacific plans to merge Southwest into Security Pacific's In the San Diego County banking market,7 Security wholly owned subsidiary, SPC/CBSI Acquisitions, Inc., Los Angeles, Pacific is the fourth largest commercial banking orga- California ("SPC/CBSI"), which is applying under section 3(a)(1) of the BHC Act to become a bank holding company. Security Pacific intends that within two weeks of this merger, SPC/CBSI would divest itself of its interest in Bank and cease to be a bank holding company, 5. Under the revised Department of Justice Merger Guidelines, and Bank would be merged into Security Pacific National Bank, 49 Federal Register 26,823 (June 29, 1984), a market in which the Security Pacific's lead bank. post-merger HHI is above 1800 is considered highly concentrated. In 2. Several insurance trade associations have requested that the such markets, the Justice Department is likely to challenge a merger Board postpone action on this application pending review by the that increases the HHI by more than 50 points. The Justice Depart- Board of a petition for enforcement which alleges that Security ment has informed the Board that a bank merger or acquisition Pacific, through Security Pacific State Bank, may attempt to engage in generally will not be challenged (in the absence of other factors general insurance agency activities. Neither Southwest nor Bank indication anticompetitive effects) unless the post-merger HHI is at engage in any insurance agency activities. Moreover, the issues raised least 1800 and the merger increases the HHI by at least 200 points. The by the petition are currently the subject of litigation (Independent Justice Department has stated that the higher than normal HHI Insurance Agents of America, Inc. v. Board of Governors of the thresholds for screening bank mergers for anticompetitive effects Federal Reserve System, No. 89-4030 (2nd Cir. filed March 9, 1989)). implicitly recognizes the competitive effect of limited-purpose lenders Accordingly, the Board has determined that action on this application and other non-depository financial entities. at this time is appropriate. 6. The San Diego City banking market is approximated by the San 3. State banking data and market banking data are as of June 30, Diego RMA. 1987. 7. The San Diego County banking market consists of those areas of 4. The Los Angeles banking market is approximated by the Los San Diego County that are not included in either the San Diego RMA Angeles RMA. or the Oceanside RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 Federal Reserve Bulletin • November 1989 nization, controlling approximately $26.8 million in deposits, representing approximately 32.8 percent of deposits, representing approximately 11.7 percent of the total deposits in commercial banks in the market. the total deposits in commercial banks in the market. The HHI for the Hemet banking market would in- Southwest is the third largest commercial banking crease by 196 points from 1953 to 2149. The Board organization in the market, controlling approximately notes that five other commercial banks will remain in $31.1 million in deposits, representing approximately the market following consummation of this proposal. 13.7 percent of the total deposits in commercial banks In addition, the Board has considered the presence of in the market. Upon consummation of the proposal, thrift institutions in this market. In this regard, seven- Security Pacific would become the largest commercial teen thrift institutions in the market control approxibanking organization, controlling approximately $57.9 mately 69.7 percent of the total deposits in the market. million in deposits, representing approximately 25.4 Based on these and all of the facts of record, the Board percent of the total deposits in commercial banks in concludes that the thrift institutions operating in this the market. The HHI for the San Diego County market exert a significant competitive influence that banking market would increase by 320 points from mitigates the anticompetitive effects of the proposal in 1533 to 1853. this banking market.11 Although consummation of this proposal would In the Oceanside banking market,12 Security Pacific eliminate some existing competition in the San Diego is the fifth largest commercial banking organization, County banking market, five other commercial banks controlling approximately $55.2 million in deposits, would continue to operate in the market. In addition, representing approximately 10.5 percent of the total the Board has considered the presence of thrift insti- deposits in commercial banks in the market. Southtutions in this market. The Board has previously west is the second largest commercial banking organiindicated that thrift institutions have become, or have zation in the market, controlling approximately $83.6 the potential to become, major competitors of com- million in deposits, representing approximately 15.9 mercial banks.8 In the San Diego County market, percent of the total deposits in commercial banks in eleven thrift institutions control approximately 66 per- the market. Upon consummation of the proposal, cent of total deposits in the market. Based upon the Security Pacific would become the largest commercial activities and market share of thrift institutions, the banking organization, controlling approximately Board has concluded that thrift institutions exert a $138.8 million in deposits, representing approximately significant competitive influence that mitigates the 26.4 percent of the total deposits in commercial banks anticompetitive effects of the proposal in this banking in the market. The HHI for the Oceanside banking market.9 market would increase by 336 points from 1312 to In the Hemet banking market,10 Security Pacific is 1648. The Board notes that ten other commercial the largest commercial banking organization, control- banks will remain in the market following consummaling approximately $142.4 million in deposits, repre- tion of this proposal. In addition, the Board has senting approximately 29.5 percent of the total depos- considered the presence of thrift institutions in this its in commercial banks in the market. Southwest is market. In this regard, seventeen thrift institutions in the seventh largest commercial banking organization the market control approximately 60.9 percent of the in the market, controlling approximately $16 million in total deposits in the market. Based on these and all of deposits, representing approximately 3.3 percent of the facts of record, the Board concludes that the thrift the total deposits in commercial banks in the market. institutions operating in this market exert a significant Upon consummation of the proposal, Security Pacific competitive influence that mitigates the anticompetiwould remain the largest commercial banking organi- tive effects of the proposal in this banking market.13 zation, controlling approximately $158.4 million in For these reasons, and based upon a review of all of the facts of record, the Board concludes that consummation of this proposal would not have a significantly 8. National City Corporation, 70 FEDERAL RESERVE BULLETIN 743 (1984); The Chase Manhattan Corporation, 70 FEDERAL RESERVE BULLETIN 529 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE 11. If 50 percent of deposits held by thrift institutions in the Hemet BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL banking market were included in the calculation of market concentra- RESERVE BULLETIN 802 (1983); and First Tennessee National Corpo- tion, Security Pacific's pro forma market share would be 15.3 percent. ration, 69 FEDERAL RESERVE BULLETIN 298 (1983). The HHI would increase by 42 points to 734. 9. If 50 percent of deposits held by thrift institutions in the San 12. The Oceanside banking market is approximated by the Ocean- Diego County banking market were included in the calculation of side RMA. market concentration, Security Pacific's pro forma market share 13. If 50 percent of deposits held by thrift institutions in the would be approximately 12.9 percent and, upon consummation of the Oceanside banking market were included in the calculation of market proposed transaction, the HHI would increase by 82 points to 779. concentration, Security Pacific's pro forma market share would be 10. The Hemet banking market is approximated by the Hemet approximately 14.7 percent. The HHI would increase by 105 points to RMA. 724. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 759 adverse effect on competition in any relevant market. ("Agency CRA Statement").17 The Agency CRA In addition, the financial and managerial resources of Statement provides guidance regarding the types of Security Pacific, Southwest, and their respective sub- policies and procedures that the supervisory agencies sidiaries are consistent with approval. believe financial institutions should have in place in In considering the convenience and needs of the order to fulfill their responsibilities under the CRA on communities to be served, the Board has taken into an ongoing basis and the procedures that the superviaccount the record of Security Pacific's subsidiary sory agencies will use during the application process to banks under the Community Reinvestment Act review an institution's CRA compliance and perfor- ("CRA") (12 U.S.C. § 2901 et seq.). The CRA mance. requires the federal financial supervisory agencies to Initially, the Board notes in this case that Security encourage financial institutions to help meet the credit Pacific's subsidiary banks have each received satisfacneeds of the local communities in which they operate, tory ratings from their primary regulators in examinaconsistent with the safe and sound operation of such tions of their CRA performance. In addition, Security institutions. To accomplish this end, the CRA requires Pacific has in place the types of programs outlined in the appropriate federal supervisory authority to assess the Agency CRA Statement as essential to an effective the institution's record of meeting the credit needs of CRA program. In particular, Security Pacific has its entire community, including low- and moderate- adopted a management policy ("Policy") that estabincome neighborhoods, consistent with the safe and lishes the organization's principles of compliance with sound operation of the institution, and to take this the CRA and specifies the responsibilities of each record into account in its evaluation of bank holding subsidiary bank for implementing the policies of the company applications.14 CRA. The Policy requires each bank to designate a In this regard, the Board has received comments CRA Officer to monitor the bank's compliance with filed jointly by the Certified Development Corporation the CRA and to identify and address the credit and of San Diego, the San Diego Incubator Corporation, banking needs of the communities served by the bank. the City-County Reinvestment Task Force, and the Each CRA Officer must complete and maintain a North County Housing Foundation (collectively community assessment of every community served by "Protestants") critical of the CRA performance of the bank. The community assessment is derived from Security Pacific's lead bank, Security Pacific National information solicited by bank offices,18 and community Bank ("SPNB"). Specifically, Protestants allege that outreach efforts by bank staff members. In addition, SPNB has failed to meet the credit needs of low- and each bank is required to develop market and demomoderate-income individuals and has only limited in- graphic data with respect to banking resources, popuvolvement in loan programs guaranteed by the Small lation trends, income and employment trends, home Business Administration ("SBA").15 Security Pacific ownership, and similar information regarding the has submitted a detailed response to the comments needs of the community served by the bank. The made by Protestants.16 community outreach program entails constant contact by bank staff with local government officials, commu- The Board has carefully reviewed the CRA perfornity and nonprofit organizations, and local business mance record of SPNB, as well as Protestants' comassociations to identify the community's credit and ments and Security Pacific's response to those combanking needs. Moreover, SPNB publicizes the availments, in light of the CRA, the Board's regulations and ability of its services to low- and moderate-income the Statement of the Federal Financial Supervisory neighborhoods by advertising in various newspapers. Agencies Regarding the Community Reinvestment Act Each CRA Officer reports to the bank's board of directors, which annually reviews the bank's CRA record and CRA Policy Statement. Security Pacific's 14. 12 U.S.C. § 2903. corporate CRA Officer supervises the bank CRA Of- 15. In particular, Protestants assert that SPNB's 1987 centralization ficers and reports regularly to corporate senior manof community lending functions at its Community Development Loan Center near Los Angeles has made access to such services difficult for agement. San Diego area residents and businesses, and generally has failed to meet expectations generated by SPNB's promotion of these services. Protestants are also concerned that Bank will stop extending credit to small businesses after it is acquired by Security Pacific. Additionally, Protestants claim that SPNB has failed to respond to the San Diego 17. 54 Federal Register 13,742 (1989). area's growing need for loans to finance the purchase of affordable 18. Each bank CRA Officer compiles information obtained from housing. surveys conducted by staff of each bank office to determine and 16. SPNB has met privately with Protestants in an effort to clarify identify the following characteristics particular to each bank office: 1) the issues presented under the CRA. Although the parties were unable community composition; 2) unique community needs, and 3) existing to resolve all of their differences, SPNB has offered to continue to or proposed bank programs and resources that address the needs of work with Protestants to address their concerns. low- to moderate-income persons. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 Federal Reserve Bulletin • November 1989 In addition to its CRA Officer, SPNB has organized credits to finance new units. Together with Security a Community Development Committee ("Commit- Pacific, SPNB has been instrumental in the formation tee") to review continuously the efforts to ensure of the California Community Reinvestment Corporacompliance with SPNB's CRA Policy Statement. The tion, a 25-bank consortium aiming to create a $100 Committee reviews the information, opinions and re- million revolving loan fund to provide fixed rate, quests received through SPNB's outreach programs long-term loans for affordable housing projects in and monitors changes in bank products and services. California that would accommodate low- and moder- On an ongoing basis, the Committee coordinates bank ate-income persons. SPNB's share of the commitment resources to respond to identified credit needs in to the project will total approximately $17 million. housing and other areas. The Board has also carefully reviewed Protestants' The Board has carefully reviewed Protestants' alle- comment that SPNB has had only limited involvement gations that SPNB has consistently rejected financing in loan programs guaranteed by the SBA. While it has requests for low-income housing development, has not not been a major SBA lender in recent years,20 SPNB provided grants or loans to community organizations has addressed the credit needs of the small business concerned with housing issues, and falls significantly community through a variety of conventional lending below its peers in residential lending directed to low- vehicles. Most of SPNB's small business lending is and moderate-income neighborhoods, particularly in handled through its retail banking division ("Retail the San Diego City banking market. Division"), where the majority of the loans made are An analysis of the Home Mortgage Disclosure Act between $5,000 and $100,000. During the months of ("HMDA") data for SPNB in the San Diego metro- June and July of 1989 alone, the Retail Division made politan statistical area ("MSA") for the years 1986- an average of $1.15 million in small business loans or 1987 does not support the allegation that SPNB falls lines of credit in San Diego County per month at an significantly below its peers in residential lending to average approval rate of 35 percent. low- and moderate-income neighborhoods. While ag- While the Retail Division offers primarily secured gregate lenders made 12 percent of their residential and unsecured commercial loans and real estate conmortgage loans to individuals in low- to moderate- struction loans, SPNB branch personnel are trained to income areas in 1987,19 SPNB made 11 percent of its counsel applicants in the most appropriate credit prodresidential loans to individuals in low- to moderate-in- ucts. Furthermore, SPNB has promoted these services come areas. In 1986, both SPNB and aggregate lenders by participating in conferences and other special events made 13 percent of their residential mortgage loans to low- geared to the small business community in Southern and moderate-income individuals. Likewise, in 1987 both California. In looking to future initiatives in this credit SPNB and aggregate lenders made 12 percent of their area, SPNB has met with the Cal-State Business Develhome improvement loans to individuals in low- to moder- opment Corporation to explore plans for a state-guaranate-income areas. In 1986, SPNB made 11 percent of its teed loan program for small businesses, targeting those home improvement loans to individuals in low- to moder- which are minority-owned. Additionally, Security Pacific ate-income areas while aggregate lenders made 12 percent has made various commitments to improve its SBA of their home improvement loans to low- and moderate- lending in the San Diego area.21 income individuals. For the foregoing reasons, and based upon the SPNB has also consistently participated in the fi- overall CRA record of SPNB, the compliance of nancing of low-income housing development. Since SPNB's CRA statement with applicable regulations, 1987, SPNB's Community Development Loan Center and other facts of record, the Board concludes that has provided financing for the rehabilitation or construction of over 2,000 housing units statewide, generally in partnership with government-assisted programs 20. SPNB has stated that the SBA loan market in San Diego is or private nonprofit agencies. SPNB is currently oper- dominated—and is well-served—by small, local lenders who have ating under an agreement with the City and County of developed expertise in the origination and sale of SBA loans in secondary markets. Of the top 30 SBA lenders in the area, only San Diego and the City of Oceanside to finance the sixteenth-ranked Bank of America could be compared to SPNB in rehabilitation of single and multi-family dwellings as terms of asset size and resources. supplemental funding from other sources becomes 21. In response to concerns raised by the protest, Security Pacific indicated that it will: 1) establish a Community Development Center available. In addition to direct residential lending, ("CDC") in San Diego—to handle SBA and community development- SPNB has invested $1 million in the National Equity related lending—to be headed by the officer currently in charge of SBA lending at bank: 2) contribute $250,000 towards the creation of a Fund, a program that utilizes low-income housing tax nonprofit CDC to serve the San Diego area, and 3) provide training to branch managers and loan officers on SBA lending. As indicated in the Policy Statement, commitments offered by an applicant to strengthen 19. Low- to moderate-income tracts are defined as those tracts specific aspects of its record are appropriate when its past perforwhere median family income is less than 80 percent of the MSA's. mance reveals no serious deficiencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 761 convenience and needs considerations, including the pired, and the Board has considered the applications record of performance under the CRA of Security and all the comments received in light of the factors set Pacific, SPNB, and Security Pacific's other subsidiary forth in the Bank Merger Act (12 U.S.C. § 1828(c)(5)). banks, are consistent with approval of this application. MHTC is the fourth largest commercial banking orga- Based on the foregoing and other facts of record, the nization in the state of New York, controlling deposits of Board has determined that the applications should be, $23.1 billion, which represents 8.9 percent of total deposand hereby are, approved. its in commercial banking organizations in the state.1 The The acquisition of Southwest shall not be consum- Goldome offices MHTC proposes to acquire are located mated before the thirtieth calendar day following the within New York, Nassau, Orange and Suffolk Counties effective date of this Order, or later than three months in New York. These offices hold total deposits of $1.15 after the effective date of this Order, unless such billion, representing 0.3 percent of total deposits in comperiod is extended for good cause by the Board or by mercial banks and thrift institutions in the state.2 Upon the Federal Reserve Bank of San Francisco, acting consummation of this proposal, MHTC would remain the pursuant to delegated authority. fourth largest commercial banking organization in the By order of the Board of Governors, effective state, controlling approximately 9.3 percent of total de- September 18, 1989. posits in commercial banking organizations in the state. MHTC and Goldome compete in the Metropolitan Voting for this action: Vice Chairman Johnson and Gover- New York-New Jersey banking market.3 MHTC is the nors Seger, Angell, Kelley, and LaWare. Absent and not fourth largest commercial banking organization in the voting: Chairman Greenspan. market, controlling deposits of $22.6 billion, representing approximately 7.4 percent of the total deposits in JENNIFER J. JOHNSON commercial banking organizations in the market. Gold- Associate Secretary of the Board ome is the 20th largest financial institution in the market, controlling deposits of $3.6 billion, represent- Orders Issued Under Bank Merger Act ing 1.0 percent of the total deposits in commercial banks and thrift institutions in the market. Upon con- Manufacturers Hanover Trust Company summation of this proposal, MHTC would remain the New York, New York fourth largest commercial banking organization in the market, controlling approximately 7.7 percent of total Order Approving Acquisition of Certain Assets of a deposits in commercial banking organizations in the Savings Bank, the Establishment of Branches, and market. The Metropolitan New York-New Jersey Additional Investment in Bank Premises banking market is considered to be unconcentrated and would remain so upon consummation of the proposal.4 Manufacturers Hanover Trust Company, New York, New York ("MHTC"), a state member bank, has applied for the Board's approval under section 18(c) of the Fed- 1. Market data are as of June 30, 1987, and state deposit data are as eral Deposit Insurance Act (12 U.S.C. § 1828(c)) (the of March 31, 1989. 2. Acquisition of these deposits represents less than one-third of "Bank Merger Act") to purchase certain assets from and Goldome's assets and liabilities. Moreover, Goldome will continue to assume certain liabilities of eleven branches and one operate as a thrift institution after the proposed acquisition. The public accommodation office of Goldome, Buffalo, New Board has previously determined that under these circumstances, the proposal may be viewed as the permissible acquisition of certain York. MHTC has also applied to establish branches at the assets and liabilities of thrift branches rather than the acquisition of a locations of certain of these offices pursuant to section 9 of thrift. See, Citicorp, 73 FEDERAL RESERVE BULLETIN 669 (1987). Because the deposits of Goldome were insured by the Federal Deposit the Federal Reserve Act (12 U.S.C. § 321) and to make Insurance Corporation ("FDIC") on the date prior to the enactment additional investments in bank premises in excess of the of the Financial Institutions Reform, Recovery and Enforcement Act amount of its capital stock, pursuant to section 24A of the ("FIRREA"), this transaction does not represent the conversion of a Savings Association Insurance Fund Member to a Bank Insurance Federal Reserve Act (12 U.S.C. § 371d). Fund Member under the provisions of that Act, and is not, therefore, Notice of the proposal, affording an opportunity for subject to the moratorium on such conversions contained in that Act. See FIRREA, Pub. L. No. 101-73, §§ 206(a)(7) and 208(14). interested persons to submit comments, has been 3. The Metropolitan New York-New Jersey market includes New given in accordance with the Bank Merger Act and the York City and Nassau, Suffolk, Orange, Putnam, Rockland, Sullivan, Board's Rules of Procedure (12 C.F.R. 262.3(b)). As and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerrequired by the Bank Merger Act, reports on the set, Sussex, Union, and Warren Counties in New Jersey; and parts of competitive effects of the merger were requested from Fairfield County in Connecticut. the United States Attorney General, the Comptroller 4. Under the revised Department of Justice Merger Guidelines (49 Federal Register 26,823 (June 29, 1984)), a market in which the of the Currency, and the Federal Deposit Insurance post-merger HHI is less than 1000 is considered unconcentrated. Gener- Corporation. The time for filing comments has ex- ally the Justice Department will not challenge a bank merger (in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 Federal Reserve Bulletin • November 1989 The Herfindahl-Hirschman Index ("HHI") of the mar- approximately $500 million in new common equity by ket would increase by only 2 points to 501. Upon year-end, and to increase its capital reserves. As a consummation of this proposal, the four-firm concen- result of these initiatives and the proposed acquisition, tration ratio for the market would increase 0.2 percent MHC's capital and reserves will increase and its assets to 38 percent. Based on these and the other facts of will decrease significantly. Based on these considerrecord, the Board concludes that consummation of the ations, the Board concludes that the financial reproposal would not have a significant adverse effect on sources of MHTC are consistent with approval of the competition in the relevant banking market. proposal. Managerial and future prospects consider- In evaluating these applications, the Board has ations are also consistent with approval. carefully considered the financial resources of MHTC In considering the convenience and needs of the and the effect on those resources of the proposed communities to be served, the Board has taken acquisition. The Board has previously stated that it into account the record of MHTC under the Commuexpects banking organizations contemplating expan- nity Reinvestment Act ("CRA") (12 U.S.C. § 2901 sion proposals to maintain strong capital levels sub- et seq.). The CRA requires the federal financial superstantially above the minimum levels specified in the visory agencies to encourage financial institutions to Board's Capital Adequacy Guidelines, without signif- help meet the credit needs of the local communities in icant reliance on intangibles, particularly goodwill.5 which they operate, consistent with the safe and sound The Board carefully analyzes the effect of expansion operation of such institutions. To accomplish this end, proposals on the preservation or achievement of the CRA requires the appropriate federal supervisory strong capital levels and has adopted a policy that authority to assess the institution's record of meeting there should be no significant diminution of financial the credit needs of its entire community, including strength below those levels for the purpose of effecting low- and moderate-income neighborhoods, consistent major expansion.6 with the safe and sound operation of the institutions.7 In evaluating the proposed transaction, the Board has In this regard, the Board has received comments considered the size and structure of the proposed filed jointly by the United Mine Workers of America acquisition and the fact that Manufacturers Hanover and the Association of Community Organizations for Corporation ("MHC"), the parent of MHTC, has is- Reform Now (collectively "Protestants") critical of sued additional capital as part of this proposal commen- the CRA performance of MHTC. Specifically, Protessurate with the cost of the acquisition. As a result, tants contend that MHTC has failed to meet the credit consummation of this proposal would not result in any needs of low- and moderate-income communities, diminution of MHTC's tangible primary capital ratio. focusing primarily on Brooklyn, New York.8 MHTC The present proposal will result in a relatively small has submitted a detailed response to the comments increase in MHTC's asset size, and MHTC will use the made by Protestants.9 acquired deposits to reduce its short-term liabilities. In The Board has carefully reviewed the CRA perforaddition, the Board has considered several initiatives mance record of MHTC, as well as Protestants' comrecently announced by MHC to improve its capital ments and MHTC's response to those comments, in position. light of the CRA, the Board's regulations and the These initiatives include the sale of newly issued Statement of the Federal Financial Supervisory Agencommon stock of MHC representing approximately cies Regarding the Community Reinvestment Act 4.9 percent of total common stock to Dai-Ichi Kangyo (March 21, 1989) ("Agency CRA Statement").'0 The Bank Ltd., Japan ("Dai-Ichi"), and the sale of 60 Agency CRA Statement provides guidance regarding percent of The CIT Group, one of MHC's subsidiaries, to Dai-Ichi. MHC has also announced a plan to issue 7. 12 U.S.C. § 2903. 8. In particular, Protestants contend that MHTC has engaged in discriminatory lending practices and procedures; generated an inadeabsence of other factors indicating anticompetitive effects) if the post- quate volume of first mortgage lending and lending for multi-family merger HHI is less than 1000. properties; failed to participate in government-insured mortgage loan 5. The Bank of New York Company, Inc., 74 FEDERAL RESERVE programs; and offered inappropriate credit and deposit products as set BULLETIN 257 (1988); Capital Adequacy Guidelines, 50 Federal Reg- forth in its CRA Statement that include abnormally high finance ister 16,057 (April 24, 1985). charges. Protestants also allege that MHTC's record of branch open- 6. Thus, for example, the Board has generally approved proposals ings and closings indicates a bias against low- and moderate-income involving a decline in capital only where the applicants have promptly communities. restored their capital to pre-acquisition levels following consumma- 9. In this regard, MHTC has met privately with Protestants in an tion of the proposals and have implemented programs of capital effort to clarify the issues presented under the CRA. Although the improvement to raise capital significantly above minimum levels. See, parties were unable to resolve all their differences, MHTC has offered e.g., Citicorp, 72 FEDERAL RESERVE BULLETIN 726 (1986); Security to continue to work with Protestants to develop initiatives to provide Pacific Corporation, 72 FEDERAL RESERVE BULLETIN 800 (1986). See affordable housing in low- and moderate-income communities served also, Security Banks of Montana, 71 FEDERAL RESERVE BULLETIN by MHTC. 246 (1985). 10. 54 Federal Register 13,742 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 763 the types of policies and procedures that the supervi- credit needs of the borough of Brooklyn, New York, sory agencies believe financial institutions should have through an inadequate volume of mortgages and multiin place in order to fulfill their responsibilities under family mortgage loans and an inadequate participation the CRA on an ongoing basis and the procedures that in federal government insured mortgage loan the supervisory agencies will use during the applica- programs.11 While the Agency CRA Statement identition process to review an institution's CRA compli- fies these types of loan products and federal governance and performance. ment-insured mortgage programs as examples of ef- Initially, the Board notes in this case that MHTC forts to meet the credit needs of the community, the has received satisfactory ratings in examination of its Agency CRA Statement makes clear that an institution CRA performance in its most recent reports of exam- need not offer every financial service discussed in ination. In addition, MHTC has in place the types of order to meet its CRA responsibilities. programs outlined in the Agency CRA Statement as In this regard, MHTC states that in the years 1986 essential to an effective CRA program. The CRA through 1988, it originated approximately 38,000 perprogram implemented by MHTC has a community sonal loans in Brooklyn, totaling approximately $150 outreach component that calls for ongoing community million. Approximately 23,000 of these loans, totaling contact by departmental staff regarding the needs of $77 million (or 60 percent of the total for Brooklyn), the community, including low- and moderate-income were in low- and moderate-income neighborhoods. neighborhoods, and the products and services that the During this same period, MHTC originated 1,281 small bank offers to meet these needs. MHTC also uses business loans in Brooklyn, totaling approximately specialized marketing efforts to ensure that all seg- $290 million. Approximately $153 million of these ments of the community are aware of its services. For loans (53 percent of the total for Brooklyn) were made example, MHTC regularly uses newspapers and media in low- and moderate-income neighborhoods. At yearoutlets, including neighborhood weeklies and ethnic end 1988, MHTC had approximately 76,000 active publications, to reach all segments of the community. credit card account holders in Brooklyn, with a total outstanding balance of $134 million, $52 million of To promote community input regarding the commuwhich represented credit extensions to individuals in nity's needs and the development of its products and low- and moderate-income neighborhoods. services, MHTC has established a Community Reinvestment Office, which meets with government offi- In addition, MHTC reports that from 1986 through cials, representatives of local businesses, community 1988, it originated $50 million in first mortgages, home organizations and residents to hear their concerns and equity and home owner loans in Brooklyn, of which to provide information regarding MHTC's services. $9.5 million was in low- and moderate-income neigh- The Community Reinvestment Office also conducts borhoods. In 1988, MHTC surveyed the realty and surveys to determine the credit needs of the commu- mortgage-related markets to address a perceived need nity and the degree of success that MHTC has for mortgage lending within its community. As a result achieved in meeting those needs. Staff of MHTC are of this survey, MHTC has developed marketing stratinvolved in numerous community organizations and egies and designed several mortgage products to inadvisory groups throughout its area. crease its mortgage lending, and, through such prod- The Community Reinvestment Office is headed by ucts as graduated payment mortgages and high loan to the Community Reinvestment Officer, who is responsi- value ratios, to increase its mortgage lending to its ble for ensuring ongoing compliance with all CRA low- and moderate-income communities. The Board also notes that MHTC offers both basic checking and regulations and for planning, coordinating, promoting, low balance savings accounts designed to accommoimplementing and monitoring all CRA related prodate customers with limited finances.12 Moreover, grams, including the development and coordination of MHTC has participated in a number of programs MHTC's outreach efforts to the communities it serves, designed to provide assistance to community developespecially low- and moderate-income neighborhoods. ment programs, and has made other loans and invest- This officer is assisted in the performance of these functions by various staff units within MHTC. MHTC's Community Reinvestment Officer updates senior management on a weekly basis regarding community bank- 11. While the Protestants have focused on MHTC's performance in ing needs, community development initiatives, pro- Brooklyn, the size and service area of MHTC require the Board, posed consumer banking legislation and opportunities under the CRA, to assess the overall involvement of MHTC within its whole community. for MHTC to participate in major public/private 12. Basic checking provides up to eight free checks per month and projects. In addition, MHTC's board of directors annu- unlimited free automatic teller machine usage for a $5.00 monthly fee and no minimum balance. Additional checks and ATM transactions ally reviews MHTC's CRA record and CRA statement. are $0.75 each. Savings accounts may be maintained with a balance of Protestants allege that MHTC has failed to meet the $1.00. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 Federal Reserve Bulletin • November 1989 ments recognized by the Agency CRA Statement as the branch closings cited by Protestants constituted helping to meet the credit needs of the community.13 elimination of duplicative facilities after an acquisi- In considering Protestants' allegations, particularly tion. the allegations relating to discriminatory lending prac- For the foregoing reasons, and based upon the tices and patterns and the inappropriateness of overall CRA record of MHTC, as well as other facts of MHTC's products and services to its community as record, the Board concludes that convenience and reflected in its CRA statement, the most recent CRA needs considerations are consistent with approval of examination of MHTC did not reveal any discrimina- this application.16 tory lending patterns or practices.14 Credit applica- Bank has applied under section 9 of the Federal tions were evenly distributed throughout the commu- Reserve Act (12 U.S.C. § 321 et seq.), to establish nities, including low- and moderate-income areas. new branches at the sites of certain of the Goldome Furthermore, MHTC's CRA Statement was found to branches that are the subject of this proposal. The be in compliance with applicable regulations. Board has considered the factors it is required to The Board has also carefully reviewed Protestants' consider when approving applications for establishing comments that MHTC has a bias in branch openings branches pursuant to section 9 of the Federal Reserve and closings and that MHTC has closed branches in Act (12 U.S.C. § 322) and finds those factors to be low- and moderate-income communities while opening consistent with approval. branches in high-income communities. MHTC also requests permission under section 24A An analysis of the branch closings and openings by of the Federal Reserve Act to make an additional MHTC from 1978 through 1989 does not reveal a investment in bank premises in connection with this pattern of disinvestment in low- and moderate- proposal. The additional investment will be used to income areas. The record shows that MHTC main- purchase leasehold improvements of the acquired tains many branches in low- and moderate-income branches. The Board concludes that MHTC's ability communities throughout its service areas. MHTC to make an additional investment in bank premises is has a written corporate policy which requires sub- necessary to enable MHTC to acquire the Goldome stantial financial and public service analysis prior to branches, and is consistent with approval. a decision to close a branch.15 The record shows that On the basis of the record, the applications are MHTC has closed branches after consideration of approved for the reasons summarized above. The their lack of profitability, the presence of other transaction shall not be consummated before the thir- MHTC branches nearby and the availability of other tieth calendar day following the effective date of this banking alternatives in the community. The Board Order or later than three months after the effective notes that MHTC's corporate policy on branch clos- date of this Order, unless such period is extended for ings requires management to notify the public in good cause by the Board or by the Federal Reserve advance of any proposed closing, and to conduct an Bank of New York, pursuant to delegated authority. analysis of the impact of the branch closing on the By order of the Board of Governors, effective local community and efforts that may be made to September 26, 1989. minimize any adverse impact. MHTC states that on two occasions, presentations by the local community Voting for this action: Chairman Greenspan and Governors resulted in a postponement or cancellation of the Johnson, Seger, Angell, Kelley, and LaWare. planned closing. The Board also notes that many of JENNIFER J. JOHNSON Associate Secretary of the Board 13. For example, during 1987 to 1988, MHTC's Urban Lending Department generated approximately $25.9 million in bridge loans to not-for-profit organizations located in predominately low- and moderate-income neighborhoods. Additionally, MHTC has extended ap- 16. The Board has carefully considered Protestants' requests for a proximately $25 million as part of a two-year revolving credit facility public meeting and a public hearing on this application. Although to a Minority Enterprise Small Business Investment Corporation. section 18(c) of the Bank Merger Act does not require a public meeting Finally, MHTC held $950 million in tax-exempt state and municipal or formal hearing in this instance, the Board may, in any case, order bonds at the close of 1988, of which 35.6 percent was composed of a public meeting or hearing. 12 C.F.R. 262.3(e). The Board's Rules of obligations issued by New York State and its municipalities. Procedure also provide that a public meeting may be held to clarify 14. While Protestants alleged discrimination in lending patterns factual issues related to the record of an applicant in meeting the based upon mortgage data obtained under the Home Mortgage Dis- convenience and needs of its community, or to provide an opportunity closure Act of 1975 (12 U.S.C. § 2801 et seq.), an examination of for interested persons to provide testimony. 12 C.F.R. 262.25(d). The MHTC's personal, credit card, residential finance and small business Board notes that Protestants and MHTC have submitted substantial loans indicates no significant disparities of lending patterns within written material regarding the CRA performance of MHTC and have MHTC's service area. held a private meeting to discuss these issues. In light of these facts, 15. The State of New York requires an analysis of the decision to the Board believes that a public meeting or hearing is not necessary to close a branch; MHTC's policy predates imposition of the state clarify the record in this case and would not serve any useful purpose, requirement and furnishes substantially similar information. and these requests are, therefore, denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 765 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) Bloomfield Hills Bancorp, The Bank of Bloomfield Hills, September 1, 1989 Bloomfield Hills, Michigan Bloomfield Hills, Michigan Michigan National Corporation, Bloomfield Hills Bancorp, September 1, 1989 Farmington Hills, Michigan Bloomfield Hills, Michigan Section 4 Nonbanking Effective Applicant Activity/Company date Huntington Bancshares Incorporated, Money Station, Inc., September 7, 1989 Columbus, Ohio Columbus, Ohio APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Allegiant Bancorp, Inc., Allegiant National Bank, St. Louis September 15, 1989 Kahoka, Missouri Kahoka, Missouri Amboy Bancorp, Inc., The First National Bank in Chicago August 25, 1989 Amboy, Illinois Amboy, Amboy, Illinois Cascade Bancorporation, Inc., Wabeno Bancorporation, Inc., Chicago September 11, 1989 Altoona, Iowa Altoona, Iowa CBS Banc-Corp, Citizens Bank & Savings Atlanta September 6, 1989 Russellville, Alabama Company, Russellville, Alabama Citizens National First Clarion Bancorporation, Chicago September 1, 1989 Bancorporation, Clarion, Iowa Charles City, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 Federal Reserve Bulletin • November 1989 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Colfax Bancshares, Inc., The First National Bank in Chicago September 5, 1989 Colfax, Iowa Colfax, Colfax, Iowa Colonial Bancshares, Inc., Village Bank of St. Louis St. Louis September 5, 1989 Des Peres, Missouri County, Ellisville, Missouri Dentel Bancorporation, Colfax Bancshares, Inc., Chicago September 5, 1989 Victor, Iowa Colfax, Iowa Employee Stock Ownership Upper Cumberland Bancshares, Atlanta September 13, 1989 Trust of the People's Bank & Inc., Trust Company of Pickett Byrdstown, Tennessee County, Byrdstown, Tennessee Farmers Bancshares of Oberlin, The Farmers National Bank of Kansas City August 29, 1989 Inc., Oberlin, Oberlin, Kansas Oberlin, Kansas Fayette Bancorporation, Maynard Savings Bansharescorp, Chicago August 31, 1989 Marion, Iowa Maynard, Iowa Fidelity Bankshares, Inc., The Heritage Bank of Olathe, Kansas City August 25, 1989 Garden City, Kansas Olathe, Kansas Fifth Third Bancorp, The National Bank and Trust Cleveland September 18, 1989 Cincinnati, Ohio Company of Paris, Paris, Kentucky First Capital Corporation, Citizens National Bank, Kansas City September 14, 1989 Overland Park, Kansas Fort Scott, Kansas First Clayton Bancshares, Inc., First Clayton Bank & Trust Atlanta September 8, 1989 Clayton, Georgia Company, Clayton, Georgia First National Corporation, First National Bank South, Minneapolis August 24, 1989 Grand Forks, North Dakota Grand Forks, North Dakota First National Security First National Bank of DeQueen, St. Louis September 6, 1989 Company, DeQueen, Arkansas DeQueen, Arkansas Citizens National Bank of Nashville, Nashville, Arkansas First National Bank of Howard County, Dierks, Arkansas Bank of Ashdown, N.A., Ashdown, Arkansas First Security Corporation, First Security National Bank, Atlanta September 6, 1989 Norcross, Georgia Norcross, Georgia First State Bancorp, Inc., Parkway Bank of Schaumburg, Chicago September 18, 1989 Harwood Heights, Illinois Schaumburg, Illinois First Universal Bancorporation, Pioneer Bancorporation, Inc., Kansas City August 30, 1989 Inc., Denver, Colorado Aurora, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 767 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date FM Bancorp, Inc., Melvin State Bank, Chicago September 20, 1989 Paxton, Illinois Melvin, Illinois Fourth St. Financial Corp., Herget Financial Corp., Chicago September 7, 1989 Pekin, Illinois Pekin, Illinois Greene County Bancshares, Inc., American Fidelity Bank, Atlanta August 31, 1989 Greeneville, Tennessee Alcoa, Tennessee Harmonia Bancorp, Inc., Harmonia Savings Bank, New York September 13, 1989 Kenilworth, New Jersey Kenilworth, New Jersey Henderson Bancorporation, Inc., Citizens, Inc., Minneapolis September 20, 1989 Henderson, Minnesota Winsted, Minnesota HTB, Inc., The Home Trust and Savings Chicago September 18, 1989 Osage, Iowa Bank, Osage, Iowa Huron National Bancorp, Inc., Huron National Bank, Chicago September 19, 1989 Rogers City, Michigan Rogers City, Michigan Indebancorp, The National Bank of Oak Cleveland September 18, 1989 Oak Harbor, Ohio Harbor, Oak Harbor, Ohio International Bancorporation, Pelican Bancshares, Inc., Minneapolis September 13, 1989 Bemidji, Minnesota Pelican Rapids, Minnesota Interstate Bancshares, Inc., Interstate Bank North, Dallas September 19, 1989 Houston, Texas Houston, Texas JSB Bancorp, Jasper State Bank, St. Louis September 18, 1989 Jasper, Indiana Jasper, Indiana Lee National Banc Corp., First National Bank of the Boston September 1, 1989 Lee, Massachusetts Berkshires, Lee, Massachusetts Liberty National Bancorp, Inc., Florence Deposit Bank, St. Louis September 19, 1989 Louisville, Kentucky Florence, Kentucky Lubbock National Bancshares, Lubbock National Bank, Dallas September 18, 1989 Inc., Lubbock, Texas Lubbock, Texas Main Line Bancshares, Inc., National Bank of the Main Line, Philadelphia September 7, 1989 Wayne, Pennsylvania Wayne, Pennsylvania Marine Corporation, Central Financial Group, Inc., Chicago September 19, 1989 Springfield, Illinois Monticello, Illinois Martinius Corporation, Almelund Bancshares, Inc., Minneapolis September 8, 1989 Rogers, Minnesota Almelund, Minnesota Merchants National Corporation, FIRST NATIONAL Chicago September 20, 1989 Indianapolis, Indiana BANKSHARES, INC., Logansport, Indiana Mineral Wells Bancshares, Inc., First State Bank of Mineral Dallas September 1, 1989 Mineral Wells, Texas Wells, Mineral Wells, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 Federal Reserve Bulletin • November 1989 Section 3—Continued Reserve Effective Applicant BBaannkk((ss)) Bank date Multibank Financial Corp., Andover Bancorp, Inc., Boston August 24, 1989 Dedham, Massachusetts Andover, Massachusetts The Waltham Corporation, Waltham, Massachusetts First Woburn Bancorp, Inc., Woburn, Massachusetts NBS Holdings, Inc., Bergen Park National Bank, Kansas City September 12, 1989 Denver, Colorado Evergreen, Colorado Douglas County National Bank, Parker, Colorado Northwest Illinois Bancorp, Inc., NWIB Acquisition Corporation, Chicago August 24, 1989 Freeport, Illinois Inc., Freeport, Illinois First Galena Bancshares, Inc., Galena, Illinois Peoples Financial Corp. of Peoples National Bank of Chicago September 15, 1989 Illinois, Inc., Kewanee, Kewanee, Illinois Kewanee, Illinois Readlyn Bancshares, Inc., Britt Bancshares, Inc., Chicago September 14, 1989 St. Paul, Minnesota St. Paul, Minnesota Reelfoot Bancshares, Inc., Dixie Bancshares, Inc., St. Louis August 28, 1989 Union City, Tennessee Dukedom, Tennessee Reelfoot Bancshares, Inc., Fulton Bancshares, Inc., St. Louis August 28, 1989 Union City, Tennessee Fulton, Kentucky Security Bancorp, Inc., Security State Bank, Atlanta August 25, 1989 Canton, Georgia Canton, Georgia Sheldon Security Sheldon Security Financial Chicago September 14, 1989 Bancorporation, Inc., Corporation, Sheldon, Iowa Sheldon, Iowa Sheldon Security Financial Security State Bank, Chicago September 14, 1989 Corporation, Sheldon, Iowa Sheldon, Iowa Wabeno Bancorporation, Inc., State Bank of Wabeno, Chicago September 11, 1989 Altoona, Iowa Wabeno, Wisconsin Section 4 Nonbanking Reserve Effective Applicant Activity/Company Bank date Business Bancorp, Provident California Business San Francisco September 1, 1989 San Jose, California and Industrial Development Corporation, San Francisco, California Merchant House, PNB Financial Group, San Francisco August 28, 1989 Santa Ana, California Newport Beach, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 769 Section 4—Continued Nonbanking Reserve Effective Applicant Activity/Company Bank date Norwest Corporation, Crestwood Financial Corp., Minneapolis September 14, 1989 Minneapolis, Minnesota Minneapolis, Minnesota Crestwood Capital Corp., Minneapolis, Minnesota Sections 3 and 4 Bank(s)/ Reserve Effective Applicant Nonbanking Company Bank date Community First South Dakota Community First Minnesota Minneapolis August 30, 1989 Bankshares, Inc., Bankshares, Inc., Fargo, North Dakota Fargo, North Dakota Community First Service Corporation, Fargo, North Dakota Ventura County National Frontier Group, Inc., San Francisco September 12, 1989 Bancorp, La Palma, California Oxnard, California Frontier Bank, N.A., La Palma, California APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Reserve Effective Applicant Bank(s) Bank date Indian Head Bank and Trust Indian Head National Bank of Boston August 31, 1989 Company, Keene, Portsmouth, New Hampshire Keene, New Hampshire Indian Head Bank North, Littleton, New Hampshire Indian Head National Bank, Nashua, New Hampshire Dartmouth National Bank, Hanover, New Hampshire Fleet Bank of New Hampshire, Nashua, New Hampshire Security Bank and Trust Trenton Bank and Trust Chicago August 30, 1989 Company, Company, Southgate, Michigan Trenton, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 Federal Reserve Bulletin • November 1989 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. CB&T Bancshares, Inc. v. Board of Governors, No. Baugh v. Board of Governors, No. C88-3037 (N.D. 89-1394 (D.C. Cir., filed June 21, 1989). Iowa, filed April 8, 1988). MCorp v. Board of Governors, No. 89-2816 (5th Cir., Bonilla v. Board of Governors, No. 88-1464 (7th Cir., filed May 2, 1989). filed March 11, 1988. Independent Insurance Agents of America, Inc. v. Cohen v. Board of Governors, No. 88-1061 (D.N.J., Board of Governors, No. 89-4030 (2d Cir., filed filed March 7, 1988). March 9, 1989). The Chase Manhattan Corporation v. Board of Gov- Securities Industry Association v. Board of Gover- ernors, No. 87-1333 (D.C. Cir., filed July 20, 1987). nors, No. 89-1127 (D.C. Cir., filed February 16, Lewis v. Board of Governors, Nos. 87-3455, 87-3545 1989). (11th Cir., filed June 25, Aug. 3, 1987). American Land Title Association v. Board of Gover- Consolidated Bancorp v. Board of Governors, No. nors, No. 88-1872 (D.C. Cir., filed December 16, W-89-CA251 (W.D. Tex., filed September 8, 1989); 1988). Consolidated Bancorp v. Board of Governors, Ad- MCorp v. Board of Governors, No. CA3-88-2693-F versary Proceeding No. 89-6081 (Bankr. W.D. (N.D. Tex., filed October 28, 1988). Tex., filed September 15, 1989). White v. Board of Governors, No. CU-S-88-623-RDF First Savings Bank v. Federal Reserve System, et al., (D. Nev., filed July 29, 1988). No. 89-4117, (D.S.D., filed August 31, 1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 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 A22 Gross demand deposits—individuals, institutions partnerships, and corporations A6 Selected borrowings in immediately available funds—Large member banks FINANCIAL MARKETS A23 Commercial paper and bankers dollar POLICY INSTRUMENTS acceptances outstanding A23 Prime rate charged by banks on short-term A7 Federal Reserve Bank interest rates business loans A8 Reserve requirements of depository institutions A24 Interest rates—money and capital markets A9 Federal Reserve open market transactions A25 Stock market—Selected statistics A26 Selected financial institutions—Selected assets and liabilities FEDERAL RESERVE BANKS FEDERAL FINANCE A10 Condition and Federal Reserve note statements All Maturity distribution of loan and security A28 Federal fiscal and financing operations holdings A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation A30 Gross public debt of U.S. Treasury—Types and ownership MONETARY AND CREDIT AGGREGATES A31 U.S. government securities A12 Aggregate reserves of depository institutions dealers—Transactions and monetary base A32 U.S. government securities dealers—Positions A13 Money stock, liquid assets, and debt measures and financing AI5 Bank debits and deposit turnover A3 3 Federal and federally sponsored credit A16 Loans and securities—All commercial banks agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

47 Federal Reserve Bulletin • November 1989 SECURITIES MARKETS AND A56 U.S. reserve assets CORPORATE FINANCE A56 Foreign official assets held at Federal Reserve Banks A34 New security issues—State and local A57 Foreign branches of U.S. banks—Balance governments and corporations sheet data A35 Open-end investment companies—Net sales A59 Selected U.S. liabilities to foreign official and asset position institutions A35 Corporate profits and their distribution A35 Total nonfarm business expenditures on new plant and equipment A36 Domestic finance companies—Assets and REPORTED BY BANKS IN THE UNITED STATES liabilities and business credit A59 Liabilities to and claims on foreigners A60 Liabilities to foreigners REAL ESTATE A62 Banks' own claims on foreigners A63 Banks' own and domestic customers' claims on A37 Mortgage markets foreigners A38 Mortgage debt outstanding A63 Banks' own claims on unaffiliated foreigners A64 Claims on foreign countries—Combined CONSUMER INSTALLMENT CREDIT 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 A44 Summary of credit market debt outstanding A45 Summary of credit market claims, by holder SECURITIES HOLDINGS AND TRANSACTIONS A67 Foreign transactions in securities Domestic Nonfinancial Statistics A68 Marketable U.S. Treasury bonds and notes—Foreign transactions SELECTED MEASURES A46 Nonfinancial business activity—Selected INTEREST AND EXCHANGE RATES measures A47 Labor force, employment, and unemployment A69 Discount rates of foreign central banks A48 Output, capacity, and capacity utilization A69 Foreign short-term interest rates A49 Industrial production—Indexes and gross value A70 Foreign exchange rates A51 Housing and construction A71 Guide to Tabular Presentation, A52 Consumer and producer prices Statistical Releases, and Special A53 Gross national product and income Tables A54 Personal income and saving International Statistics SPECIAL TABLES A73 Terms of lending at commercial banks, SUMMARY STATISTICS May 1989 A55 U.S. international transactions—Summary A78 Assets and liabilities of U.S. branches and A56 U.S. foreign trade agencies of foreign banks, June 30, 1989 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 1989 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaatteess Q3 Q4 Q1 Q2 Apr. May June' July' Aug. Reserves of depository institutions2 1 Total 3.1 -.8 -4.2 -8.7 -7.8 -14.6 -8.0 7.2 1.2 2 Required 2.9 -1.5 -4.4 -7.6 -4.3 -20.0 -5.5 6.0 2.9 3 Nonborrowed 1.3 5.3 .0 -10.2 -17.9 -3.2 -3.4 24.2 1.6 4 Monetary base3 6.5 4.8 4.6 1.5 .3 -1.5 3.1 4.0 1.3 Concepts of money, liquid assets, and debt4 i Ml 5.2 2.3 -.4 -5.6 -4.8 -15.1 -4.7 10.9 .6 6 M2 3.8 3.6 1.8 1.2' -3.3' 6.2 11.5 7.4 7 M3 5.6 4.8 3.7 2.9' 2.4' -1.2' 5.7 9.0 2.0 8 L 7.1 5.5' 4.8 3.9' 4.5 -.3' .9 7.7 n.a. 9 Debt 9.2' 8.9' 8.4' 7.6' 7.2 7.3' 6.5 5.6 n.a. Nontransaction components 10 In M25 3.3 4.1 2.6 3.5' 2.8' .7' 9.9 11.7 9.6 11 In M3 only6 12.3' 9.3r 10.5' 9.2' 7.8' 6.3' 4.0 .2 -16.9 Time and savings deposits Commercial banks 12 Savings 7.9 4.0 -3.7 -14.2 -19.1 -20.4 -6.6 3.5 7.7 13 Small-denomination time 11.6 18.0 22.5 29.0 34.4' 28.3 12.0 7.5 7.9 14 Large-denomination time9-10 18.2 13.0 18.1 17.7' 21.9' 10.0' 1.8 3.2 -3.8 Thrift institutions 15 Savings7 2.1 -2.5 -7.7 -19.0 -25.6 -26.3 -9.1 -5.6 -1.7 16 Small-denomination time 5.4 6.6 4.3 14.1 17.4 22.5 15.4 9.2 4.0 17 Large-denomination time9 3.9 8.0 1.2' 5.9 12.5 8.0 1.9 -8.4 -22.5 Debt components4 Federal 7.0' 7.6' 7.7 6.9' 5.6' 4.2' 4.3 -.1 n.a. 19 Nonfederal 9.9' 9.2' 8.6' 7.8 7.7' 8.3' 7.2 7.3 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 MI: (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 Financial Statistics • November 1989 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures Factors 1989 1989 June July Aug. July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 263,924 262,096 259,232 260,162 259,481 259,183 260,435 260,064 257,673 258,726 2 U.S. government securities' 227,688 222,972 218,753 221,426 219,753 218.596 219,478 219,174 217,744 218,682 3 Bought outright 227,291 222,812 218,753 221,426 219,753 218,596 219,478 219,174 217,744 218,682 4 Held under repurchase agreements 397 160 0 0 0 0 0 0 0 0 5 Federal agency obligations 6,754 6,674 6,609 6,654 6,609 6,609 6,609 6,609 6,609 6,609 6 Bought outright 6,654 6,637 6,609 6,654 6,609 6,609 6,609 6,609 6,609 6,609 / Held under repurchase agreements 100 37 0 0 0 0 0 0 0 0 8 Acceptances 0 0 0 0 0 0 0 0 0 0 Y Loans 1,495 685 685 687 675 643 708 580 925 563 10 Float 1,279 742 568 522 850 789 597 687 424 410 n Other Federal Reserve assets 26,709 31,024 32,619 30,873 31,595 32,547 33,043 33,013 31,972 32,462 12 Gold stock" 11,061 11,066 11,066 11,066 11,066 11,066 11,066 11,066 11,066 11,066 13 Special drawing rights certificate account... 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 14 Treasury currency outstanding 19,188 19,245 19,318 19,239 19,253 19,309 19,319 19,314 19,324 19,334 ABSORBING RESERVE FUNDS 15 Currency in circulation 247,860 249,824 249,102 250,131 248,853 248,701 249,589 249,831 248,984 248,011 16 Treasury cash holdings2 488 466 429 464 464 453 435 431 426 422 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 10,072 6,067 5,437 5,155 5,025 5,149 5,542 5,747 4,662 5,680 18 Foreign 251 229 250 210 210 265 255 282 243 208 19 Service-related balances and adjustments 1,924 1,970 1,889 1,673 1,996 1,845 1,977 1,896 1,859 1,845 20 Other 303 262 314 228 318 291 221 261 273 528 21 Other Federal Reserve liabilities and capital 8,101 8,029 7,948 7,915 7,818 8,115 8,618 77,,776666 77,,666677 77,,668877 22 Reserve balances with Federal Reserve Banks3 33,692 34,085 32,765 33,207 33,633 33,258 32,702 32,748 32,467 33,262 End-of-month figures Wednesday figures 1989 1989 June July Aug. July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 269,037 259,145 256,914 258,897 260,027 260,626 262,392 259,473 261,421 256,932 24 U.S. government securities' 231,767 218,676 217,409 219,810 219,897 219,425 220,789 219,577 219,214 216,339 25 Bought outright 231,767 218,676 217,409 219,810 219,897 219,425 220,789 219,577 219,214 216,339 26 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 27 Federal agency obligations 6,654 6,609 6,609 6,654 6,609 6,609 6,609 6,609 6,609 6,609 28 Bought outright 6,654 6,609 6,609 6,654 6,609 6,609 6,609 6,609 6,609 6,609 29 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 30 Acceptances 0 0 0 0 0 0 0 0 0 0 31 Loans 841 594 541 632 622 660 1,278 579 2,902 561 32 Float -203 351 634 1,233 805 1,134 609 856 448 896 33 Other Federal Reserve assets 29,978 32,915 31,722 30,569 32,094 32,798 33,107 31,853 32,249 32,528 34 Gold stock" 11,063 11,066 11,066 11,067 11,067 11,066 11,066 11,066 11,066 11,066 35 Special drawing rights certificate account... 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 36 Treasury currency outstanding 19,211 19,309 19,344 19,239 19,253 19,309 19,319 19,314 19,324 19,334 ABSORBING RESERVE FUNDS 37 Currency in circulation 249,139 248,637 249,245 249,646 248,655 249,181 249,930 249,722 248,641 248,540 38 Treasury cash holdings2 474 451 420 464 455 448 431 427 422 420 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 12,153 5,312 6,652 4,984 4,925 4,808 6,185 4,612 5,648 5,714 40 Foreign 275 371 265 242 200 228 179 239 180 207 41 Service-related balances and adjustments 1,616 1,592 1,611 1,588 1,588 1,592 1,592 1,608 1,626 1,611 42 Other 229 236 273 254 483 228 234 308 258 339 43 Other Federal Reserve liabilities and capital 8,178 8,693 7,063 7,655 7,590 8,400 7,615 7,467 77,,448877 77,,446655 44 Reserve balances with Federal Reserve Banks3 35,765 32,747 30,313 32,887 34,967 34,636 35,129 33,990 36,067 31,555 1. Includes securities loaned—fully guaranteed by U.S. government securities Research and Statistics, Banking Section. pledged with Federal Reserve Banks—and excludes any securities sold and 3. Excludes required clearing balances and adjustments to compensate for scheduled to be bought back under matched sale-purchase transactions. float. 2. Revised for periods between October 1986 and April 1987. At times during NOTE. For amounts of currency and coin held as reserves, see table 1.12. this interval, outstanding gold certificates were inadvertently in excess of the gold Components may not add to totals because of rounding. stock. Revised data not included in this table are available from the Division of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Monthly averages' RReesseerrvvee ccllaassssiiffiiccaattiioonn 1986 1987 1988 1989 Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. 1 Reserve balances with Reserve Banks" 37,360 37,673 37,830 32,834 34,623 35,841 33,199 33,852 33,902r 32,826 2 Total vault cash3 24,077 26,185 27,197 29,776 27,059 26,746 27,166 27,151 27,851 28,358 3 Vault4 22,199 24,449 25,909 27,859 25,589 25,456 25,712 25,735 26,35lr 26,736 4 Surplus5 1,878 1,736 1,288 1,917 1,470 1,290 1,454 1,416 1,500 1,622 5 Total reserves6 59,560 62,123 63,739 60,693 60,212 61,288 58,911 59,587 60,254' 59,562 6 Required reserves 58,191 61,094 62,699 59,539 59,255 60,511 57,881 58,68lr 59,288' 58,680 7 Excess reserve balances at Reserve Banks 1,369 1,029 1,040 1,154 957 776 1,031 905 966 881 8 Total borrowings at Reserve Banks 827 777 1,716 1,487 1,813 2,289 1,720 1,490 694 675 9 Seasonal borrowings at Reserve Banks 38 93 130 97 139 213 345 431 497 490 10 Extended credit at Reserve Banks8 303 483 1,244 1,050 1,334 1,707 1,197 917 106 41 Biweekly averages of daily figures for weeks ending 1989 May 17 May 31 June 14 June 28 July 12 July 26 Aug. 9' Aug. 23' Sept. 6 Sept. 20 11 Reserve balances with Reserve Banks2 33,864 31,964 34,608 32,950 34,866 33,410 32,969 32,599 33,064 34,410 12 Total vault cash3 26,644 27,701 26,607 27,630 27,607 27,948 28,166 28,852 27,710 28,095 13 Vault4 25,352 26,071 25,301 26,104 26,191 26,432 26,513 27,212 26,154 26,669 14 Surplus5 1,292 1,631 1,306 1,526 1,416 1,517 1,654 1,640 1,556 1,426 15 Total reserves6 59,216 58,034 59,909 59,054 61,057 59,842 59,481 59,810 59,218 61,079 16 Required reserves 58,357 56,877 59,012 58,154 60,067 58,807 58,766 58,859 58,271 60,000 17 Excess reserve balances at Reserve Banks 859 1,158 897 901 990 1,035 715 951 947 1,079 18 Total borrowings at Reserve Banks 1,739 1,649 2,126 965 717 681 676 753 538 613 19 Seasonal borrowings at Reserve Banks 336 373 388 467 483 509 497 489 485 438 20 Extended credit at Reserve Banks8 1,206 1,148 1,657 287 146 90 55 44 22 21 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 8. Extended credit consists of borrowing at the discount window under the institutions having required reserve balances at Federal Reserve Banks plus the terms and conditions established for the extended credit program to help amount of vault cash equal to required reserves during the maintenance period at depository institutions deal with sustained liquidity pressures. Because there is institutions having no required reserve balances. not the same need to repay such borrowing promptly as there is with traditional 5. Total vault cash at institutions having no required reserve balances less the short-term adjustment credit, the money market impact of extended credit is amount of vault cash equal to their required reserves during the maintenance similar to that of nonborrowed reserves. period. 9. Data are prorated monthly averages of biweekly averages. 6. Total reserves not adjusted for discontinuities consist of reserve balances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • November 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 Sept. 12 Sept. 19 Sept. 26 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 69,451 65,767 62,866 66,221 71,087 68,324 67,062 68,826 75,509 2 For all other maturities 9,714 9,443 9,450 8,919 9,090 8,970 9,116 9,587 9,855 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 29,922 26,636 27,000 25,144 28,535 29,991 30,448 27,666 30,134 4 For all other maturities 6,581 6,895 6,273 6,081 6,340 6,386 5,512 5,717 5,909 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 15,072 14,596 13,683 12,927 13,238 13,880 13,871 13,982 13,782 6 For all other maturities 11,524 13,136 13,293 12,723 12,699 12,221 12,740 12,743 12,756 All other customers 7 For one day or under continuing contract 27,761 27,123 27,616 27,876 26,825 28,236 27,945 29,260 27,481 8 For all other maturities 9,691 10,429 10,341 9,629 10,089 9,594 10,022 10,847 10,572 MEMO: Federal funds loans and resale agreements in immediately available funds in maturities of one day or under continuing contract 9 To commercial banks in the United States 34,356 37,066 37,013 39,869 37,509 38,388 34,037 36,653 38,783 10 To all other specified customers2 13,677 14,421 13,079 13,513 14,007 15,296 14,675 13,523 14,176 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. 2. Brokers and nonbank dealers in securities; other depository institutions; These data also appear in the Board's H.5 (507) release. For address, see inside foreign banks and official institutions; and United States government agencies, front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels AAddjjuussttmmeenntt ccrreeddiitt Extended credit2 aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt'' First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk 9/2 O 8 n /8 9 Ef d fe a c te ti ve Pre r v at i e o us 9/2 O 8 n /8 9 Ef d fe a c te ti ve Pre r v at i e o us 9/2 O 8 n /8 9 Ef d fe a c te ti ve Pre r v at i e o us Effective date Boston 7 2/24/89 6l/2 7 2/24/89 6'/5 9.35 9/21/89 9.35 9/7/89 New York 2/24/89 2/24/89 9/21/89 9/7/89 Philadelphia 2/24/89 2/24/89 9/21/89 9/7/89 Cleveland 2/24/89 2/24/89 9/21/89 9/7/89 Richmond 2/24/89 2/24/89 9/21/89 9/7/89 Atlanta 2/24/89 2/24/89 9/21/89 9/7/89 Chicago 2/24/89 2/24/89 9/21/89 9/7/89 St. Louis 2/24/89 2/24/89 9/21/89 9/7/89 Minneapolis 2/24/89 2/24/89 9/21/89 9/7/89 Kansas City 2/24/89 2/24/89 9/21/89 9/7/89 D Sa a n ll a F s r ancisco ... 7 2 2 / / 2 2 4 7 / / 8 8 9 9 6>/> 7 2 2 / / 2 2 4 7 / / 8 8 9 9 6'/5 9.35 9 9 / / 2 2 1 1 / / 8 8 9 9 9.35 9 9 / / 7 7 / / 8 8 9 9 Range of rates for adjustment credit in recent years4 Range (or F.R. Range(or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977 6 6 1980—July 28 10-11 10 1984—Apr. 9 81/5-9 9 1978—Jan. 9 6-6'/5 6'/5 29 10 10 13 9 9 20 6'/5 6'/> Sept. 26 11 11 Nov. 21 8V5-9 81/2 May 11 6'/5-7 7 Nov. 17 12 12 26 8 81/2 July 1 3 2 7-7 7 i-i 7 7 lA Dec. 5 12-13 13 Dec. 24 8 8 Aug. 2 1 1 0 7 7 '}A A 7 7 ! '/ / 4 4 1981—May 5 8 13 1 - 4 1 4 1 1 4 4 1985—May 2 2 0 4 7' 7 / 1 5 / - 5 8 7 7V V 5 5 Sept. 22 8 8 Nov. 2 13-14 13 Oct. 16 8-8'/! 81/2 6 13 13 1986—Mar. 7 7-71/5 7 Nov. 20 1 3 8'/5 8 9- '/ 9V 5 ' /52 98 9 1/V V 2 2 2 1982—J D u e ly c . 2 4 0 11'/ 1 ! 2 -1 2 1 1 2 1 '/! J A u p ly r. 2 1 1 1 1 0 6V 6 7 5 -7 6 7 6' /5 23 111/! 11'/! Aug. 21 5V5-6 51/5 1979—July 20 10 10 Aug. 2 11-11'/! 11 22 5Vi 5'/5 Aug. 17 10-10'/! lO'/i 3 20 101/! 10'/! 16 10'/! 10'/! 11998877——SSeepptt.. 44 51/2-6 6 Sept. 19 10'/!—1 1 11 27 10-10'/! 10 1111 6 6 21 11 11 30 10 10 Oct. 8 11-12 12 Oct. 12 9'/!-10 91/2 11998888——AAuugg.. 99 6-6V5 6'/! 10 12 12 13 91/! 9 '/> 1111 6>/5 6V5 Nov. 22 9-9'/! 9 1980—Feb. 15 12-13 13 26 9 9 1989—Feb. 24 6V5-7 7 19 13 13 Dec. 14 81/5-9 9 27 7 7 May 3 2 0 9 12 1 - 2 1 3 1 1 3 2 1 1 5 7 8m'/!- 9 m 81/ 2 In effect Sept. 28, 1989 7 7 June 13 11-12 16 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 '/5 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 ance is not reasonably available from other sources, when exceptional circum- adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and stances or practices involve only a particular institution or when an institution is to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective experiencing difficulties adjusting to changing market conditions over a longer Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the period of time. formula for applying the surcharge was changed from a calendar quarter to a 3. For extended-credit loans outstanding more than 30 days, a flexible rate moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. 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 Financial Statistics • November 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 11/2 years 10/6/83 1 '/> 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 1989 TTyyppee ooff ttrraannssaaccttiioonn 11998866 11998877 11998888 Jan. Feb. Mar. Apr. May June July U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 22,604 18,983 8,223 0 0 0 33,,007777 331111 00 00 ? Gross sales 2,502 6,051 587 154 3,688 0 0 321 571 5,517 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 1,000 9,029 2,200 600 1,600 0 0 1,200 1,200 2,400 Others within 1 year 5 Gross purchases 190 3,659 2,176 0 0 0 117722 00 00 00 6 0 300 0 0 0 0 0 0 0 0 7 18,674 21,504 23,854 620 5,418 2,646 1,657 2,863 1,828 1,749 8 Exchange -20,180 -20,388 -24,588 -2,703 -2,308 -2,322 -110 -3,628 -1,434 -1,073 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 11,,443366 00 00 00 11 0 452 800 3 225 0 0 75 0 13 V Maturity shift -17,058 -17,975 -17,720 -541 -5,319 -2,646 -1,532 -2,036 -1,828 -1,584 13 Exchange 16,985 18,938 22,515 2,492 2,008 2,322 0 3,328 1,434 787 5 to 10 years 14 Gross purchases 236 2,441 1,579 0 0 0 228877 00 00 00 15 Gross sales 0 0 175 20 0 0 0 0 0 9 16 Maturity shift -1,620 -3,529 -5,946 -79 -100 0 -125 258 0 -165 17 Exchange 2,050 950 1,797 212 200 0 110 200 0 286 Over 10 years 18 Gross purchases 158 1,858 1,398 0 00 00 228844 00 00 00 19 Gross sales 0 0 0 0 0 0 0 0 0 0 70 Maturity shift 0 0 -188 0 0 0 0 -1,086 0 0 21 Exchange 1,150 500 275 0 100 0 0 100 0 0 All maturities ?? Gross purchases 24,081 37,170 18,863 0 0 0 55,,225555 311 00 00 73 2,502 6,803 1,562 177 3,913 0 0 396 571 5,539 24 Redemptions 1,000 9,099 2,200 600 1,600 0 0 1,200 1,200 2,400 Matched transactions ?5 927,999 950,923 1,168,484 94,204 110,393 83,677 77,349 123,029 112288,,113399 112233,,337733 26 Gross purchases 927,247 950,935 1,168,142 94,252 112,472 82,821 78,259 113,041 138,141 118,221 Repurchase agreements2 77 170,431 334,621 152,613 17,208 00 00 2222,,224444 3311,,441199 66,,220033 44,,996611 28 Gross sales 160,268 324,666 151,497 21,969 0 0 12,547 41,117 6,203 4,961 29 Net change in U.S. government securities 29,988 11,234 15,872 -5,489 -3,434 -856 15,863 -20,971 8,232 -13,091 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 00 00 00 00 00 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 398 276 587 148 40 0 125 0 0 45 Repurchase agreements2 33 Gross purchases 31,142 80,353 57,259 8,980 00 0 77,,220077 1122,,773322 11,,666666 11,,113377 34 Gross sales 30,521 81,350 56,471 11,081 0 0 3,366 16,573 1,666 1,137 35 Net change in federal agency obligations 222 -1,274 198 -2,249 -40 0 3,716 -3,841 0 -45 36 Total net change in System Open Market 30,212 9,961 16,070 -7,738 -3,474 -856 1199,,557799 --2244,,881122 88,,223322 --1133,,113366 1. Sales, redemptions, and negative figures reduce holdings of the System Open 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers Market Account; all other figures increase such holdings. Details may not add to acceptances in repurchase agreements, totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • November 1989 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1989 1989 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 June July Aug. Consolidated condition statement ASSETS 1 Gold certificate account 11,066 11,066 11,066 11,066 11,066 11,063 11,066 11,066 2 Special drawing rights certificate account 8,518 8.518 8,518 8,518 8,518 8,518 8,518 8,518 3 446 453 461 461 450 445 450 445 Loans 4 To depository institutions 660 1,278 579 2,902 561 840 594 542 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 6,609 6,609 6,609 6,609 6,609 6,655 6,609 6,609 8 Held under repurchase agreements 0 0 0 0 0 0 0 0 U.S. Treasury securities Bought outright 9 Bills 96,712 98,076 97,013 96,651 93,776 109,031 9955,,996622 9944,,884466 10 Notes 92,300 92,300 91,950 91,950 91,950 92,322 92,300 91,951 11 Bonds 30,414 30,414 30,614 30,614 30,614 30,414 30,414 30,613 12 Total bought outright' 219,425 220,789 219,577 219,214 216,339 231,767 218,676 217,409 N Held under repurchase agreements 0 0 0 0 0 0 0 0 14 Total U.S. Treasury securities 219,425 220,789 219,577 219,214 216,339 231,767 218,676 217,409 15 Total loans and securities 226,694 228,676 226,764 228,725 223,509 239,263 225,879 224,560 16 Items in process of collection 7,595 5,951 7,349 5,815 6,266 6,550 4,409 6,206 17 Bank premises 768 768 769 769 769 767 768 776 Other assets 18 Denominated in foreign currencies3 21,529 21,580 21,873 21,947 22,065 19,213 21,529 21,292 19 All other4 10,501 10,759 9,211 9,532 9,693 10,001 10,618 9,655 20 Total assets 287,117 287,772 286,012 286,834 282,336 295,816 283,237 282,515 LIABILITIES 21 Federal Reserve notes 230,765 231,494 231,295 230,200 230,075 230,847 230,229 230,766 Deposits 72 To depository institutions 36,228 36,721 35,598 37,694 33,166 37,381 34,339 3311,,992244 23 U.S. Treasury—General account 4,808 6,185 4,612 5,648 5,714 12,153 5,312 6,652 ?4 Foreign—Official accounts 228 179 239 180 207 275 371 264 25 Other 228 234 308 258 339 228 236 275 26 Total deposits 41,491 43,319 40,756 43,780 39,426 50,040 40,258 39,116 27 Deferred credit items 6,461 5,343 6,494 5,367 5,370 6,751 4,057 5,572 28 Other liabilities and accrued dividends 2,800 2,900 2,780 2,775 2,744 3,272 2,841 3,072 29 Total liabilities 281,517 283,056 281,325 282,122 277,615 290,911 277,384 278,524 CAPITAL ACCOUNTS 30 Capital paid in 2,156 2,159 2,159 2,159 2,161 2,146 2,156 2,162 31 Surplus 2,112 2,112 2,112 2,112 2,112 2,117 2,112 1,809 32 Other capital accounts 1,332 445 416 440 448 649 1,585 22 33 Total liabilities and capital accounts 287,117 287,772 286,012 286,834 282,336 295,816 283,237 282,515 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 238,158 239,294 241,481 240,939 242,745 362,000 236,847 242,857 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 275,083 275,542 276,293 276,848 276,738 272,983 274,736 276,492 36 LESS: Held by bank 44,318 44,048 44,997 46,648 46,663 42,135 44,507 45,727 37 Federal Reserve notes, net 230,765 231,494 231,295 230,200 230,075 230,847 230,229 230,766 Collateral held against notes net: 38 Gold certificate account 11,066 11,066 11,066 11,066 11,066 11,063 11,066 11,066 39 Special drawing rights certificate account 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 211,181 211,910 211,711 210,616 210,492 211,266 210,645 211,182 42 Total collateral 230,765 231,494 231,295 230,200 230,075 230,847 230,229 230,766 1. Some of these data also appear in the Board's H.4.1 (503) release. For 3. Valued monthly at market exchange rates. address, see inside front cover. Components may not add to totals because of 4. Includes special investment account at the Federal Reserve Bank of Chicago rounding. 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. 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 Holdings1 Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1989 1989 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 June 30 July 31 Aug. 31 4 2 3 1 Lo 9 W 1 a 1 6 n i t d s d h — a a i y n y T s s 1 o t t 5 o t o a d l 1 9 a 0 y y e d s a a r y s 6 3 3 6 0 5 0 0 5 5 1,2 9 3 7 4 3 8 0 9 0 5 3 2 7 6 1 0 9 9 0 2 2 , , 9 8 0 2 7 2 7 0 5 5 4 6 6 9 0 1 8 3 1 1 , , 4 3 1 9 3 5 5 0 9 6 5 4 1 9 1 7 4 0 5 9 5 3 1 4 5 8 1 0 4 7 5 6 8 7 Ac W 9 1 c 1 6 e i p t d d h t a a a i y n y n s s c 1 e t t 5 o o s — d 1 9 a 0 T y y o e s d a t a a r y l s 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 9 0 1 2 3 4 U. W O 9 1 O S 1 6 . v v i t e e d d T h r r a a r i n y y e 5 1 s a s y y 1 s t t u e 5 e o o a a r d y r 9 r 1 a s 0 t y s y o t e e d s o c 2 a 5 a u r y 1 y r s 0 i e t y i a e r e s s a — rs T otal 2 4 5 1 6 2 1 1 6 1 9 6 7 3 3 , , , , , , , 7 5 4 3 9 2 6 2 2 8 0 0 8 2 3 5 3 6 3 7 3 2 4 5 2 6 2 1 1 9 1 0 6 9 0 3 , , , , , , , 3 7 3 5 7 1 6 3 8 0 8 5 8 2 8 9 6 0 8 3 3 2 4 5 1 7 2 1 1 5 1 9 6 2 3 0 , , , , , , , 4 7 5 5 1 5 1 6 7 7 0 4 0 7 8 7 7 6 5 8 3 2 4 5 1 6 2 1 1 9 1 9 6 8 3 0 , , , , , , , 0 2 5 7 1 1 5 5 1 0 4 7 4 8 6 4 6 5 7 7 4 2 4 5 6 2 1 1 9 1 6 9 5 6 3 , , , , , , , 9 7 5 3 6 3 1 5 7 4 0 3 1 3 7 7 5 6 9 6 9 2 5 5 7 2 3 1 6 2 4 6 8 1 3 , , , , , , , 1 5 3 8 3 7 5 9 4 0 1 6 1 9 8 6 6 2 7 2 3 2 4 5 2 1 6 1 8 6 9 1 8 9 3 , , , , , , , 3 3 1 6 6 5 6 9 0 4 7 2 8 2 5 6 4 6 5 3 3 2 5 7 1 5 2 1 0 3 7 6 2 1 3 , , , , , , , 3 4 5 4 4 1 5 3 0 0 5 4 3 3 1 9 6 9 5 7 1 2 1 2 1 1 1 1 8 0 6 7 9 Fe O W O 9 1 d 1 6 e v v i r e t e d d a h r r a a l i n y y 5 1 a s s g y y 1 t e t e e 5 o o n a a d c r r 9 1 y s a 0 t y y o t o e d o s b 2 a 5 a l r 1 y i y g 0 s e a y a ti e r o s a n rs s —Total 6 3 1 1 , , , , 6 2 0 4 7 1 0 4 1 2 3 8 9 0 9 6 1 3 9 6 3 1 1 , , , , 6 2 8 3 0 1 0 1 4 4 1 8 9 0 0 9 4 6 9 6 3 1 1 , , , , 6 2 3 0 7 1 0 4 6 0 2 8 8 9 4 4 1 4 6 9 6 3 1 1 , , , , 6 2 4 3 3 0 1 0 6 2 4 0 9 8 9 4 0 4 1 0 9 6 3 1 1 , , , , 0 6 2 4 3 3 1 1 0 7 5 4 3 8 2 9 2 9 2 4 9 6 3 1 , , , 6 3 2 6 9 1 1 5 8 8 4 9 8 5 4 6 9 2 6 9 2 6 3 1 1 , , , , 6 2 3 7 0 1 1 0 4 2 3 1 8 0 9 9 1 2 6 9 1 6 3 1 1 , , , , 6 2 3 0 3 4 1 0 5 4 1 3 7 8 9 9 2 2 4 2 9 1. Holdings under repurchase agreements are classified as maturing within 15 NOTE: Components may not add to totals because of rounding, days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics • November 1989 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1989 IItteemm 1985 1986 1987 1988 Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 48.49 58.14 58.69 60.71 60.37 60.26 59.85 59.46 58.74 58.35 58.70 58.76 2 Nonborrowed reserves 47.17 57.31 57.92 58.99 58.71 58.77 58.04 57.17 57.02 56.86 58.00' 58.08 3 Nonborrowed reserves plus extended credit4 47.67 57.62 58.40 60.23 59.75 59.82 59.38 58.88 58.22 57.78 58.11 58.12 4 Required reserves 47.44 56.77 57.66 59.67 59.23 59.11 58.90 58.69 57.71 57.44 57.73 57.87 5 Monetary base5 219.51 241.45 257.99 275.50 276.78 277.55 278.61 278.67 278.33 279.06 279.98 280.29 Not seasonally adjusted 6 Total reserves3 49.59 59.46 60.06 62.21 62.07 59.37 58.94 60.01 57.72 58.41 58.95r 58.30 7 Nonborrowed reserves 48.27 58.64 59.28 60.50 60.40 57.88 57.13 57.72 56.00 56.92 58.26 57.62 8 Nonborrowed reserves plus extended credit4 48.77 58.94 59.76 61.74 61.45 58.93 58.46 59.43 57.20 57.84 58.37 57.67 9 Required reserves 48.53 58.09 59.03 61.17 60.92 58.22 57.98 59.23 56.69 57.51 57.99 57.42 10 Monetary base5 222.73 245.25 262.08 279.71 277.92 274.36 275.62 278.11 277.49 280.18 282.07 281.09 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS6 11 Total reserves3 48.14 59.56 62.12 63.74 63.47 60.69 60.21 61.29 58.91 59.59 60.25r 59.56 12 Nonborrowed reserves 46.82 58.73 61.35 62.02 61.81 59.21 58.40 59.00 57.19 58.10 59.56 58.89 13 Nonborrowed reserves plus extended credit4 47.32 59.04 61.83 63.27 62.85 60.26 59.73 60.71 58.39 59.01 59.67 58.93 14 Required reserves 47.08 58.19 61.09 62.70 62.32 59.54 59.25 60.51 57.88 58.68 59.29 58.68 15 Monetary base5 223.53 247.71 266.16 283.18 281.31 277.66 278.94 281.52 280.54 283.27 285.36 284.23 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 . May June July Aug. Seasonally adjusted 1 620.5 725.9 752.3 790.3 773.3 770.3 777.2' 777.7 ~> 2,567.4 2,811.2 2,909.9 3,069.5' 3,072.1' 3,088.0' 3,117.5' 3,136.6 3 3,201.7 3,494.9 3,677.6 3,915.4' 3,954.5' 3,973.3' 4,003.0' 4,009.6 4 3,830.6 4,137.1 4,340.2 4,676.1' 4,742.8' 4,746.5' 4,776.9 n.a. 5 6,741.5' 7,597.0' 8,316.1' 9,081.1' 9,380.8' 9,431.6' 9,475.4 n.a. Ml components 6 Currency3 167.8 180.5 196.4 211.8 216.4 221177..44 221188..00 221188..55 7 Travelers checks4 5.9 6.5 7.1 7.6 7.3 7.2 7.1 7.2 8 Demand deposits5 267.3 303.2 288.3 288.6 278.2 275.0 278.9' 277.3 9 Other checkable deposits6 179.5 235.8 260.4 282.3 271.3 270.7 273.2 274.7 Nontransactions components 1100 In M27 1,946.9 2,085.3 2,157.6' 2,279.3' 2,298.8' 2,317.7' 2,340.2' 22,,335588..99 1111 In M3 only8 634.3 683.7 767.7' 845.9' 882.4' 885.4' 885.5' 873.0 Savings deposits9 1? Commercial Banks 125.0 155.8 178.5 192.5 118822..44 118811..44 118811..99 118833..11 13 Thrift institutions 176.6 215.2 237.8 238.8 222.3 220.6 219.6 219.3 Small-denomination time deposits10 14 383.3 364.6 385.3 443.1 496.9 550011..99 550055..00 550088..33 15 Thrift institutions 499.2 489.3 528.8 582.2 608.8 616.6 621.3 623.4 Money market mutual funds 16 General purpose and broker-dealer 176.5 208.0 221.1 239.4 258.9 265.1 274.6 228855..55 17 Institution-only 64.5 84.4 89.6 87.6 91.6 95.1 98.2 100.6 Large-denomination time deposits" 18 Commercial Banks12 285.1 288.8 325.4 364.9 395.8' 396.4' 339977..44'' 339966..22 19 Thrift institutions 151.5 150.1 162.0 172.9 176.3' 176.6' 175.4 172.1 Debt components ?0 Federal debt l,585.8r 1,805.8 1,957.4' 2,113.5' 2,176.5' 22,,118844..33'' 22,,118844..00 n.a. 21 5,155.7r 5,791.2' 6,358.6' 6,967.6' 7,204.3' 7,247.3' 7,291.4 n.a. Not seasonally adjusted 7? 633.5 740.4 766.4 804.4 767.1 773.8 781.8 777.7 73 2,576.2 2,821.1 2,918.7 3,077.2' 3,062.6' 3,090.8' 3,125.3' 3,137.6 74 3,213.3 3,507.4 3,688.6' 3,925.2' 3,944.3' 3,973.9' 4,004.7' 4,011.3 ?5 3,843.7 4,152.0 4,354.6' 4,689.6' 4,731.4' 4,747.5' 4,768.2 n.a. 26 6,730.9' 7,580.7' 8,297.6' 9,066.4' 9,337.2' 9,390.8' 9,438.7 n.a. Ml components 77 Currency3 170.2 183.0 199.3 214.9 221166..66 221188..55 221199..77 221199..44 78 Travelers checks4 5.5 6.0 6.5 6.9 7.1 7.5 8.1 8.1 79 Demand deposits5 276.9 314.0 298.6 298.8 273.3 276.4 281.5' 276.5 30 Other checkable deposits 180.9 237.4 262.0 283.7 270.1 271.4 272.5 273.7 Nontransactions components 31 M2 1,942.7 2,080.7 2,152.3 2,272.9' 2,295.5' 22,,331177..00'' 2,343.5' 22,,335599..99 32 M3 only8 637.1 686.3 769.9' 848.0' 881.7' 883.1' 879.4' 873.7 Money market deposit accounts 33 332.8 379.6 358.8 352.5 327.0 328.1 330.9 333366..00 34 180.7 192.9 167.5 150.3 130.0 128.8 129.0 129.7 Savings deposits9 35 Commercial Banks 123.7 154.2 176.6 190.3 118833..66 118833..22 118844..33 118844..11 36 Thrift institutions 174.8 212.7 234.8 235.6 223.7 223.3 223.2 221.1 Small-denomination time deposits10 37 Commercial Banks 384.0 365.3 386.1 444.1 493.2 499.6 504.4 507.9 38 Thrift institutions 499.9 489.8 529.1 582.4 605.7 612.8 619.8' 620.9 Money market mutual funds 39 General purpose and broker-dealer 176.5 208.0 221.1 239.4 258.9 265.1 274.6 285.5 40 Institution-only 64.5 84.4 89.6 87.6 91.6 95.1 98.2 100.6 Large-denomination time deposits" 41 Commercial Banks12 285.4 289.1 325.8 365.6 394.6' 339944..99'' 394.7' 339966..99 42 151.8 150.7 163.0 174.1 175.2 174.8 173.3 171.3 Debt components 43 Federal debt 1,583.7 1,803.9 1,955.6 2,111.8 22,,115599..55 22,,116655..11'' 22,,116633..66 n.a. 44 5,147.r 5,776.8' 6,342.0' 6,954.6' 7,177.7' 7,225.7' 7,275.0 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • November 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. 1989 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998866 11998877 11998888 Jan. Feb. Mar. Apr. May June DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 188,346.0 217,116.2 226,888.4 252,226.7 255,774.3 249,088.3 245,230.1 266,468.1 284,129.2 2 Major New York City banks 91,397.3 104,496.3 107,547.3 109,875.9 121,770.1 111,387.4 107,808.9 120,984.1 129,166.6 3 Other banks 96,948.8 112,619.8 119,341.2 142,350.8 134,004.2 137,700.9 137,421.3 145,483.9 154,962.7 4 ATS-NOW accounts4 2,182.5 2,402.7 2,757.7 2,976.2 3,054.9 3,264.9 2,986.4 3,406.5 3,696.5 5 Savings deposits5 403.5 526.5 583.0 647.4 649.2 675.2 585.5 647.2 640.0 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 556.5 612.1 641.2 716.3 734.4 721.0 697.5 767.1 824.0 7 Major New York City banks 2,498.2 2,670.6 2,903.5 3,113.7 3,618.0 3,393.0 3,092.2 3,342.1 3,588.5 8 Other banks 321.2 357.0 376.8 449.3 425.9 440.4 433.9 467.5 501.8 9 ATS-NOW accounts4 15.6 13.8 14.7 15.6 16.0 17.1 15.7 18.2 19.8 10 Savings deposits5 3.0 3.1 3.1 3.5 3.5 3.6 3.2 3.6 3.6 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 188,506.7 217,125.1 227,010.7 257,649.6 231,347.8 264,581.6 238,265.6 274,861.8 295,522.8 12 Major New York City banks 91,500.1 104,518.8 107,565.0 112,480.2 110,047.2 120,202.2 105,461.7 121,507.2 134,020.7 13 Other banks 97,006.7 112,606.2 119,445.7 145,169.4 121,300.6 144,379.4 132,803.9 153,354.6 161,502.1 14 ATS-NOW accounts4 2,184.6 2,404.8 2,754.7 3,245.1 2,762.1 3,228.6 3,205.2 3,325.2 3,770.8 15 MMDA6 1,609.4 1,954.2 2,430.1 3,072.5 2,622.4 2,636.7 2,700.2 2,910.5 3,136.0 16 Savings deposits5 404.1 526.8 578.0 668.7 573.3 649.6 649.6 637.9 641.4 DEPOSIT TURNOVER Demand deposits3 17 AH insured banks 556.7 612.3 641.7 713.7 683.1 782.3 676.6 805.9 855.6 18 Major New York City banks 2,499.1 2,674.9 2,901.4 2,998.6 3,255.7 3,603.3 3,017.6 3,482.5 3,795.0 19 Other banks 321.2 356.9 377.1 448.7 397.8 473.6 418.7 500.9 520.9 20 ATS-NOW accounts4 15.6 13.8 14.7 16.7 14.5 16.9 16.3 18.0 20.3 21 MMDA6 4.5 5.3 6.9 8.9 7.8 7.8 8.1 9.0 9.7 22 Savings deposits5 3.0 3.1 3.1 3.6 3.1 3.5 3.5 3.5 3.6 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 Financial Statistics • November 1989 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1988 1989 CCaatteeggoorryy Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted 1 Total loans and securities2 2,381.5 2,401.4 2,410.2 2,417.2 2,422.8 2,451.9 2,464.9 2,470.9 2,486.3 2,496.8 2,518.1 2,534.4 2 U.S. government securities 353.1 355.6 358.8 361.4 360.4 361.8 368.8 370.7 373.5 373.8 374.4 376.6 3 Other securities 195.2 196.8 195.9 194.0 189.6 190.4 189.7 187.2 186.4 185.7 184.6 182.8 4 Total loans and leases2 1,833.2 1,848.9 1,855.6 1,861.9 1,872.9 1,899.7 1,906.5 1,913.1 1,926.5 1,937.3 1,959.1 1,974.9 5 Commercial and industrial ..... 598.1 601.6 601.8 601.9 606.6 619.0 617.8 620.6 626.3 624.9 632. Y 637.3 6 Bankers acceptances held ... 4.1 4.1 4.3 4.1 4.4 4.2 4.0 4.1 4.2 4.2 4.1 4.5 7 Other commercial and industrial 594.0 597.5 597.4 597.8 602.2 614.8 613.7 616.6 622.1 620.7 628.1 632.8 8 U.S. addressees4 587.2 590.9 591.3 591.8 596.6 609.9 608.3 611.7 616.6 615.2 622.2 627.1 9 Non-U.S. addressees 6.9 6.5 6.1 5.9 5.7 4.9 5.4 4.8 5.4 5.5 5.9 5.7 10 Real estate 650.3 659.8 665.3 672.0 678.9 685.6 691.8 699.5 705.5 712.0 719.9r 729.0 11 Individual 350.2 351.6 353.0 355.5 357.9 358.9 360.6 362.9 365.4 366.0 367.0 369.3 12 Security 36.5 38.5 38.2 38.5 37.7 44.7 43.6 40.0 38.0 41.1 40.3 39.6 13 Nonbank financial institutions 30.7 30.4 30.2 30.0 30.3 30.6 29.7 29.2 29.0 30.6 31.7 32.0 14 Agricultural 29.6 29.8 30.3 30.7 30.7 30.7 30.7 30.4 30.3 30.3 30.4 30.4 15 State and political subdivisions 48.0 48.5 47.7 46.8 44.4 44.5 44.6 44.6 44.6 44.4r 44.2r 43.9 16 Foreign banks 7.2 7.6 8.1 7.6 7.8 8.5 8.2 8.3 9.4 9.3 8.9 9.3 17 Foreign official institutions 5.0 4.9 4.9 4.9 4.8 4.8 4.8 4.9 4.9 4.7 4.5 4.3 18 Lease financing receivables 28.5 28.9 29.1 29.2 29.4 29.6 29.6 29.8 30.0 29.9 30.3 30.3 19 All other loans 49.1 47.5 47.0 44.8 44.4 42.7 45.2 42.9 43.1 43.9r 49.7 49.6 Not seasonally adjusted 20 Total loans and securities2 2,378.9 2,392.6 2,409.2 2,429.6 2,430.7 2,453.6 2,462.8 2,473.9 2,487.4 2,500.9 2,511.8r 2,526.9 21 U.S. government securities 352.9 352.6 357.5 361.6 362.2 366.3 370.2 370.9 372.6 372.6 373.1 376.8 22 Other securities 195.0 195.6 196.0 193.7 191.7 190.1 188.9 187.2 186.8 186.0 184.1 183.1 23 Total loans and leases2 1,831.0 1,844.4 1,855.7 1,874.2 1,876.9 1,897.2 1,903.7 1,915.9 1,928.0 1,942.3 1,954.6 1,966.9 24 Commercial and industrial ..... 593.3 597.0 599.3 605.0 605.8 618.3 621.1 625.2 630.0 629.0 631.0 632.7 25 Bankers acceptances held ... 4.2 4.2 4.3 4.1 4.1 4.1 4.0 4.0 4.3 4.4 4.2 4.6 26 Other commercial and industrial 589.1 592.8 595.0 600.9 601.7 614.2 617.1 621.3 625.8 624.6 626.8 628.0 27 U.S. addressees 582.5 586.6 588.9 594.8 596.4 608.9 611.8 616.0 620.2 619.0 621.2 622.6 28 Non-U.S. addressees4 6.6 6.2 6.1 6.1 5.3 5.3 5.3 5.3 5.5 5.6 5.6 5.5 29 Real estate 651.9 660.7 667.2 673.3 678.9 683.6 689.2 697.4 704.1 712.1 720.6r 730.4 30 Individual 351.8 352.6 354.1 359.4 360.7 358.2 357.7 360.3 363.2 364.5 365.9 369.3 31 Security 35.1 36.9 37.6 38.9 38.2 43.8 44.1 42.0 38.9 42.8 39.9 38.3 32 Nonbank financial institutions 30.7 30.1 30.3 31.1 30.7 30.0 29.1 29.0 29.2 30.8 31.7 31.9 33 Agricultural 30.5 30.6 30.5 30.5 30.1 29.8 29.6 29.6 30.1 30.7 31.1 31.2 34 State and political subdivisions 47.3 48.0 47.1 46.6 45.8 45.5 45.1 44.8 44.5 44.lr 43.6r 43.4 35 Foreign banks 7.4 7.6 8.2 7.9 8.1 8.5 8.0 8.0 9.0 9.1 9.0 9.1 36 Foreign official institutions 5.0 4.9 4.9 4.9 4.8 4.8 4.8 4.9 4.9 4.7 4.5 4.3 37 Lease financing receivables 28.4 28.7 28.9 29.4 29.7 29.7 29.7 29.8 30.0 30.0 30.2 30.2 38 All other loans 49.6 47.3 47.5 47.3 44.0 45.0 45.4 44.7 44.2 44.6r 47.1 46.1 I. Data have been revised because of benchmarking beginning January 1984. 2. Excludes loans to commercial banks in the United States. These data also appear in the Board's G.7 (407) release. For address, see inside 3. Includes nonfinancial commercial paper held, front cover. 4. United States includes the 50 states and the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1989 Source Sept.' Oct/ Nov/ Dec. Jan.' Feb. Mar/ Apr.' May June July Aug. Seasonally adjusted 1 Total nondeposit funds 210.3 211.3 217.8 215.2' 208.1 211.2' 211.9 205.8 209.8' 227.C 228.2' 229.6 2 Net balances due to related foreign offices 8.2 5.6 9.3 e.s' 8.1 10.7 8.1 3.0 -.1 7.9 11.1 9.3 3 Borrowings from other than commercial banks in United States4 202.0 205.6 208.4 208.4r 200.0 200.5'' 203.8 202.8 log^ 219.1' 217.1' 220.3 4 Domestically chartered banks 166.1 167.4 169.1 169.4' 163.0 161.3' 165.8 164.2 169.2' 179.1' 175.3' 178.0 5 Foreign-related banks 36.0 38.2 39.3 39.0 37.0 39.2 38.1 38.7 40.7 40.0 41.8 42.3 Not seasonally adjusted 6 Total nondeposit funds 206.8 205.2 214.5 209.5' 207.2 216.1' 217.6 208.5 217.5' 230.1' 224.0" 228.4 7 Net balances due to related foreign offices ... 9.3 5.3 10.4 9.2 7.8 10.5' 7.1 .9 2.6 8.1 8.1 8.9 8 Domestically chartered banks -15.6 -20.4 -19.1 -20.7 -20.4 -17.9 -19.7 -23.0 -22.tr -18.5 -16.6 -15.4 9 Foreign-related banks 24.9 25.7 29.5 29.9 28.2 28.3 26.8 23.8 24.6 26.6 24.7 24.3 10 Borrowings from other than commercial banks in United States4 197.6 200.0 204.1 200.3r 199.5 205.6' 210.5 207.6 214.9' 222.0'' 215.8' 219.4 11 Domestically chartered banks 162.3 163.2 167.8 163.3' 161.3 165.1' 170.9 168.1 173.8' 180.4' 173.4' 177.5 12 Federal funds and security RP borrowings5 157.9 159.1 163.2 159.8' 157.9 161.9T 167.4 163.8 170.0' 177.0' 170.8' 174.9 13 Other6 4.4 4.1 4.6 3.5 3.4 3.2 3.5 4.3 3.7 3.4 2.7 2.6 14 Foreign-related banks 35.3 36.8 36.3 37.0 38.1 40.5 39.6 39.5 41.1 41.6 42.4 42.0 MEMO Gross large time deposits 15 Seasonally adjusted 419.7 423.2 424.5 429.2 434.9 440.3 446.7 452.7 456.8 458.8 461.6 460.5 16 Not seasonally adjusted 421.7 424.7 425.6 429.8 434.5 440.2 448.2 450.6 455.5 457.3 458.9 461.2 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 23.5 27.2 23.0 24.9 20.3 20.3 20.3 20.9 27.1 27.4 22.7 22.9 18 Not seasonally adjusted 24.6 27.7 16.3 22.9 25.0 25.9 18.1 20.2 34.3 26.2 23.0 15.8 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. Treasuty 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 • November 1989 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1988 1989 AAccccoouunntt Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,551.6 2,591.6 2,601.6 2,587.0 2,624.0 2,627.1 2,623.0 2,659.8 2,660.7 2,677.1 2,692.5 2 Investment securities 524.8 532.9 533.5 533.5 535.8 539.1 538.3 541.1 541.6 538.3 542.8 3 U.S. government securities 334.1 341.5 345.3 347.3 351.3 355.5 356.6 359.1 362.2 360.3 365.3 4 Other 190.7 191.4 188.2 186.2 184.5 183.6 181.7 182.0 179.4 178.1 177.5 5 Trading account assets 24.9 24.8 19.2 21.5 20.1 21.8 17.8 19.2 18.2 19.8 18.7 6 Total loans 2,002.0 2,033.9 2,048.9 2,032.1 2,068.0 2,066.2 2,066.8 2,099.5 2,100.9 2,119.0 2,131.0 7 Interbank loans 161.3 170.3 165.7 159.9 173.2 154.9 150.7 160.5 155.0 162.4 162.9 8 Loans excluding interbank 1,840.7 1,863.6 1,883.2 1,872.2 1,894.9 1,911.3 1,916.2 1,939.0 1,945.9 1,956.6 1,968.1 9 Commercial and industrial 595.0 601.3 608.8 604.6 617.6 622.9 627.3 631.1 628.3 635.3 631.9 10 Real estate 661.8 669.6 676.3 679.7 684.1 692.6 699.4 706.7 715.1 722.8 733.9 11 Individual 353.3 355.3 361.4 360.8 358.3 358.1 361.8 363.8 366.0 366.2 371.4 12 All other 230.6 237.5 236.6 227.0 234.8 237.7 227.7 237.4 236.6 232.3 231.0 13 Total cash assets 209.9 237.5 246.3 216.1 227.4 211.5 215.8 248.3 214.2 211.7 212.0 14 Reserves with Federal Reserve Banks. 31.7 33.8 34.5 31.5 27.7 30.9 33.4 27.8 27.9 30.6 28.7 15 Cash in vault 26.3 28.7 30.3 27.5 26.6 26.8 26.9 27.9 27.6 27.4 28.5 16 Cash items in process of collection ... 72.9 89.8 92.3 76.4 89.1 75.9 78.8 107.6 78.7 75.2 77.4 17 Demand balances at U.S. depository institutions 29.4 32.4 34.4 28.7 33.3 28.8 28.5 34.9 29.6 28.8 29.7 18 Other cash assets 49.6 52.8 54.8 52.0 50.7 49.0 48.3 50.2 50.5 49.7 47.6 19 Other assets 200.3 200.7 200.0 194.6 191.4 194.1 200.7 206.8 198.7 201.1 199.6 20 Total assets/total liabilities and capital.... 2,961.8 3,029.7 3,047.9 2,997.8 3,042.8 3,032.7 3,039.5 3,114.9 3,073.6 3,090.0 3,104.0 21 Deposits 2,072.2 2,125.8 2,145.7 2,097.1 2,125.2 2,123.7 2,134.2 2,182.6 2,138.2 2,152.0 2,166.7 22 Transaction deposits 587.8 628.6 642.7 586.6 602.6 583.2 594.5 628.5 580.5 579.4 583.4 23 Savings deposits 537.8 541.1 535.6 528.8 527.3 523.2 512.0 509.7 507.4 514.0 518.9 24 Time deposits 946.7 956.1 967.5 981.7 995.3 1,017.3 1,027.6 1,044.3 1,050.2 1,058.6 1,064.3 25 Borrowings 482.6 479.0 473.1 493.6 502.9 483.6 486.7 510.6 512.7 510.2 504.6 26 Other liabilities 214.5 229.0 233.7 209.1 216.5 223.9 217.4 218.6 218.4 223.1 226.3 27 Residual (assets less liabilities) 192.5 195.9 195.3 198.0 198.2 201.4 201.2 203.2 204.4 204.7 206.5 MEMO 28 U.S. government securities (including trading account) 354.0 361.0 359.4 364.4 366.2 372.1 369.5 372.3 374.4 373.5 377.5 29 Other securities (including trading account) 195.7 196.7 193.4 190.5 189.7 188.8 186.6 188.0 185.4 184.6 184.0 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2,353.9 2,389.8 2,391.9 2,385.1 2,405.9 2,407.8 2,407.8 2,446.0 2,439.9 2,452.1 2,467.5 31 Investment securities 499.3 507.1 507.2 507.0 509.0 513.1 513.8 516.1 517.3 514.2 519.4 32 U.S. government securities 322.8 329.9 333.2 334.5 338.1 342.7 344.1 345.9 349.5 347.8 353.5 33 Other 176.5 177.1 174.0 172.6 171.0 170.4 169.7 170.2 167.8 166.5 165.9 34 Trading account assets 24.9 24.8 19.2 21.5 20.1 21.8 17.8 19.2 18.2 19.8 18.7 35 Total loans 1,829.8 1,858.0 1,865.4 1,856.6 1,876.8 1,872.8 1,876.2 1,910.6 1,904.5 1,918.1 1,929.4 36 Interbank loans 131.3 139.7 133.1 131.4 138.9 122.3 120.2 131.5 119.3 126.4 127.0 37 Loans excluding interbank 1,698.5 1,718.3 1,732.3 1,725.2 1,737.8 1,750.5 1,756.0 1,779.2 1,785.1 1,791.7 1,802.5 38 Commercial and industrial 492.7 498.7 500.6 498.9 503.4 506.1 511.3 515.5 511.6 515.6 512.8 39 Real estate 641.3 647.7 654.3 657.7 661.7 669.8 676.0 683.2 691.6 698.2 708.7 40 Individual 353.0 354.9 361.1 360.5 358.0 357.7 361.4 363.5 365.6 365.8 371.1 41 All other 211.6 217.0 216.3 208.1 214.7 216.9 207.3 217.0 216.3 212.0 209.9 42. Total cash assets 190.2 216.6 223.1 193.5 206.4 191.4 195.3 227.0 192.3 190.1 191.7 43 Reserves with Federal Reserve Banks. 29.9 32.6 33.1 30.1 26.6 29.5 30.7 26.7 26.6 29.6 27.0 44 Cash in vault 26.2 28.6 30.3 27.4 26.6 26.8 26.8 27.9 27.6 27.4 28.5 45 Cash items in process of collection ... 72.2 89.0 91.4 75.6 88.1 75.1 77.9 106.6 77.7 74.4 76.5 46 Demand balances at U.S. depository institutions 27.4 30.5 32.4 26.8 31.2 26.6 26.8 32.9 27.5 27.0 28.0 47 Other cash assets 34.4 35.8 35.9 33.6 33.9 33.4 33.1 33.0 32.9 31.7 31.7 48 Other assets 130.4 132.2 135.6 128.1 129.6 130.6 134.6 133.6 131.6 128.4 127.5 49 Total assets/liabilities and capital 2,674.5 2,738.6 2,750.5 2,706.7 2,741.8 2,729.9 2,737.7 2,806.6 2,763.9 2,770.6 2,786.7 50 Deposits 2,004.0 2,056.3 2,073.0 2,026.1 2,052.7 2,047.4 2,056.2 2,103.0 2,058.8 2,071.3 2,086.9 51 Transaction deposits 578.2 618.7 632.9 577.4 593.5 574.1 584.8 618.7 571.2 570.2 574.7 52 Savings deposits 535.2 538.6 533.1 526.4 524.8 520.7 509.4 507.1 504.8 511.3 516.2 53 Time deposits 890.7 899.0 907.0 922.3 934.4 952.6 961.9 977.2 982.9 989.9 995.9 54 Borrowings 365.2 366.1 363.7 377.1 378.7 362.8 368.2 383.0 387.3 380.2 375.5 55 Other liabilities 116.3 123.8 122.0 109.0 115.8 121.7 115.6 120.9 116.9 117.8 121.3 56 Residual (assets less liabilities) 189.0 192.4 191.8 194.5 194.6 197.9 197.7 199.7 200.8 201.2 203.0 MEMO 57 Real estate loans, revolving 38.5 39.7 40.1 40.7 41.7 42.5 43.4 44.3 45.3 45.7 46.4 58 Real estate loans, other 602.7 608.0 614.2 617.0 620.0 627.3 632.6 638.9 646.2 652.5 662.3 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 July 5 July 12 July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 1 Cash and balances due from depository institutions ... 121,701' 116,684' 105,640' 105,373' 116,622 105,132 110,552 103,862 2 Total loans, leases, and securities, net 1,224,805' 1,217,343' 1,207,932' 1,216,221' 1,221,397 1,221,639 1,227,388 1,224,550 3 U.S. Treasury and government agency 141,500 140,479 140,334 142,712 142,505 143,438 145,010 145,437 4 Trading account 13,152 13,389 12,688 13.224 12,858 13,809 15.086 13,949 5 Investment account 128,348 127,090 127,646 129,488 129,647 129,629 129,924 131,488 6 Mortgage-backed securities 57,608' 57,759' 58,666' 60,530' 61,084 61,207 62,495 63,872 All other maturing in 7 One year or less 21,105' 20,894 20,718 20,472 20,348 20,474 20,272 20,357 8 Over one through five years 40,694 39,733 39,624 39,545 38,601 38,456 38,767 38,316 9 Over five years 8,941r 8,704' 8,638' 8,942r 9,614 9,492 8,389 8,943 10 Other securities 71,156 71,083 71,242 71,457 70,423 70,582 70,353 70,281 11 Trading account 1,151 1,033 1,075 1,232 1,165 1,252 983 845 12 Investment account 70,004 70,050 70,166 70.225 69,258 69,330 69,370 69,436 13 States and political subdivisions, by maturity 43,132 43,172 43,286 43,243 41,720 41,680 41,586 41,588 14 One year or less 4,525 4.666 4,740 4,830 4,785 4,770 4,806 4,842 15 Over one year 38,607 38,505 38,546 38,412 36,935 36,909 36,780 36,747 16 Other bonds, corporate stocks, and securities 26,872 26,878 26,880 26,982 27,537 27,650 27,784 27,848 17 Other trading account assets 5,281' 5,002' 5,479' 5,374' 4,829 5,021 5,502 5,436 18 Federal funds sold4 78,924 72,247 61,897 63,826' 65,779 66,918 68,100 65,350 19 To commercial banks 53,455 49,264 41,507 44,925' 45,851 46,915 48,776 46,290 20 To nonbank brokers and dealers in securities 19,174 16,261 14,695 12,721 13,496 14,683 13,674 12,531 21 To others 6,295 6,721 5,695 6,179 6,432 5,319 5,649 6,529 22 Other loans and leases, gross 965,444' 965,614' 966,202' 969,876' 974,851 972,573 975,322 974,975 23 Other loans, gross 940,664' 940,854' 941,362' 945,018' 950,063 947,818 950,440 950,129 24 Commercial and industrial 316,299' 315,226' 315,69C 319,050' 317,974 317,917 316,778 317,048 2 2 2 2 7 5 6 8 A B l a N U l n o o . k S t n e h . r - e s U a r d a .S d c r . c e e a s p d s t e d a e r n e s c s e s s e e a s n d commercial paper 3 3 1 1 2 1 4 1 , , , , 8 8 5 4 7 9 3 0 5 2 2 8 ' ' 3 3 1 1 1 1 3 1 , . , , 7 6 8 5 1 6 4 6 9 7 1 0 ' ' 3 3 1 1 1 2 3 1 , , , , 7 7 1 9 6 5 7 3 3 5 1 4 ' ' 3 3 1 1 l 5 7 1 ^ , , , 7 6 2 U 6 7 8 T 1 9 9 ' ' 3 3 1 1 4 6 1 1 , , , , 3 0 6 9 4 4 9 3 9 0 1 4 3 3 1 1 4 5 2 1 , , , , 6 2 0 9 2 8 0 1 4 7 6 2 3 3 1 1 2 4 2 1 , , , , 9 6 0 6 8 7 9 9 7 9 2 9 3 3 3 1 3 1 3 9 2 4 1 , , , , , 5 3 0 6 9 6 5 2 7 7 4 0 0 7 1 29 Real estate loans 332,033 333,122' 334,097 335,239' 336,446 337,199 338,620 25,272 30 Revolving, home equity 24,496 24,561 24,679 24,750 24,860 24,980 25,156 314,292 31 All other 307,537 308,561 309,418 310,489' 311,586 312,218 313,464 170,952 32 To individuals for personal expenditures 169,605' 169,932' 169,989' 169,977' 170,177 170,456 171,055 47,770 33 To depository and financial institutions 46,614 46,829 47,758 47,214' 49,431 48,301 48.344 21,818 34 Commercial banks in the United States 19,398 20,088 20,869 21,212 21,412 21,630 21,679 4,415 35 Banks in foreign countries 5,006 4,452 4,414 4,192 5,486 4,539 4,320 21,538 36 Nonbank depository and other financial institutions 22,209 22,289 22,474 21,810' 22,533 22,132 22.345 17,368 37 For purchasing and carrying securities 16,382 17,449 15,962 16,360 16,900 16,281 17,113 5,908 38 To finance agricultural production 5,869 5,972 5,975 5,941' 5,966 5,948 5,947 26,520 39 To states and political subdivisions 26,747' 26,634' 26,653' 26,670' 26,603 26,514 26,569 1,594 40 To foreign governments and official institutions ... 1,845 2,000 1,888 1,640 1,547 1,513 1,651 23,406 41 All other 25,270r 23,688 23,351' 22,927' 25,019 23,688 24,363 24,846 4 4 4 4 4 3 5 6 2 4 A L L O E e l t l h S a e o s S e r t : h L l U f e o i o r n n a a a n e a n n a s s c r s a a i n e n n n e t g s d d d r l l i e e e n c a a c e s s o e i e m v s r a , e e b n s l e e e t r s v e 9 1 2 3 2 3 4 4 2 7 5 , , , , , 8 7 6 9 4 3 8 6 4 4 6 0 3 4 0 ' ' 9 1 2 2 3 2 4 4 2 8 8 , , , , , 7 8 2 5 5 6 4 3 3 5 0 9 2 2 8 ' ' 9 1 2 3 2 2 4 4 2 8 8 , , , , , 9 8 2 9 3 3 3 8 8 5 5 9 5 1 9 ' ' 9 1 2 3 3 2 4 4 2 2 4 , , , , , 8 9 0 8 3 5 4 8 5 2 8 4 1 1 1 ' ' 9 1 2 3 3 2 4 4 7 2 7 , , , , , 8 7 8 7 1 6 8 6 6 2 6 8 1 2 4 9 1 2 3 3 2 4 4 5 2 8 , , , , , 8 7 6 1 0 5 8 5 8 1 5 1 7 1 1 9 1 2 3 3 2 4 4 8 2 4 , , , , , 8 8 4 0 8 9 8 2 0 3 1 1 3 8 2 9 1 3 3 2 4 8 2 2 , , , , 0 8 0 5 4 8 4 4 5 8 2 1 47 Total assets 1,481,946' 1,462,586' 1,441,931' 1,445,915' 1,465,781 1,454,929 1,462,772 1,450,953 48 Demand deposits 255,510' 224,153' 222,143' 215,829' 234,220 216,323 227,076 208,475 49 Individuals, partnerships, and corporations 203,368' 180,007' 177,271' 172,221' 185,703 174,799 182,376 166,657 50 States and political subdivisions 7,372' 5,747' 5,724 5,862 6,961 5,056 5,645 5,655 51 U.S. government 2,058 3,071 4,410 3,046 1,869 1,709 3,570 3,040 52 Depository institutions in the United States 22,548r 19,998 19,117 19,246 21,916 19,140 20,082 18,635 53 Banks in foreign countries 7,857 6,622 6,966 6,380' 6,403 5,749 5,770 5,640 54 Foreign governments and official institutions 835 955 832 809 804 763 726 818 55 Certified and officers' checks 11,471 7,753 7,822 8,265 10,563 9,106 8,908 8,030 56 Transaction balances other than demand deposits 76,578' 74,574' 73,877 72,952' 75,887 76,135 75,664 73,866 57 Nontransaction balances 682,256' 682,640' 681,556' 681,893' 685,266 686,070 686,376 687,216 58 Individuals, partnerships, and corporations 642,756' 642,976' 642,294' 642,526' 646,160 646,634 646,955 647,159 59 States and political subdivisions 30,082 30,348' 30,010 30,110 29,903 30,193 30,251 30,809 60 U.S. government 917 933 925 928 934 1,012 1,005 1,001 61 Depository institutions in the United States 7,881' 7,754' 7,693' 7,692' 7,620 7,578 7,516 7,601 62 Foreign governments, official institutions, and banks 620 629 634 637 649 654 650 645 63 Liabilities For borrowed money 280,388 293,606 276,542 286,563 283,179 288,189 286,603 291,647 64 Borrowings from Federal Reserve Banks 0 0 25 0 0 700 0 2,269 65 Treasury tax-and-loan notes 11,939 13,430 13,493 16,136 10,107 4,173 14,254 14,152 6 6 6 7 Ot A he ll r o li t a h b e i r l i l t i i a e b s il a i n ti d e s s u fo b r o r b d o i r n r a o t w ed e d n o m t o es n e a y n " d debentures 2 8 6 6 8 , , 1 4 4 4 3 8 2 8 80 6 , , 1 2 7 2 6 4 ' 2 8 6 6 3 , , 5 0 8 2 3 3 27 8 0 7 , , 4 6 2 7 7 9 2 8 7 5 3 , , 7 0 9 7 1 1 28 8 3 6 , , 3 4 1 3 6 5 27 85 2 . , 0 3 8 4 7 9 27 87 5 , , 5 2 5 2 6 7 68 Total liabilities 1,380,874' 1,361,198' 1,340,700' 1,344,917' 1,364,343 1,353,152 1,360,807 1,348,760 69 Residual (total assets minus total liabilities)7 101,071' 101,388' 101,231' 100,998' 101,438 101,776 101,965 102,193 70 T M o E t M al O l oans and leases (gross) and investments adjusted . 1,189,451' 1,185,072' 1,182,776' 1,187,109' 1,191,124 1,189,985 1,193,831 1,193,371 71 Total loans and leases (gross) adjusted" 971,514' 968,508' 965,722' 967,565' 973,366 970,944 972,966 972,217 72 Time deposits in amounts of $100,000 or more 217,202' 218,934 218,144 217,953' 218,326 219,244 219,039 219,940 73 U.S. Treasury securities maturing in one year or less .. 18,455 18,765 18,906 18,367 17,656 17,976 16,785 16,918 74 Loans sold outright to affiliates—total 1,625 1,639 1,686 1,670 1,585 1,643 1,679 1,698 75 Commercial and industrial 1,306 1,308 1,347 1,332 1,244 1,302 1,342 1,371 76 Other 319 330 338 338 341 341 337 327 77 Nontransaction savings deposits (including MMDAs)... 251,749' 250,062' 249,919' 250,09C 252,725 253,359 254,008 253,496 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 • November 1989 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1989 AAccccoouunntt July 5 July 12 July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 1 Cash balances due from depository institutions 27,588 27,373 22,860 24,436 26,886 23,211 26,743 24,124 20,658 2 Total loans, leases, and securities, net2 215,920 219,167 212,997 213,080 212,828 214,544 213,553 216,228 213,405 Securities 3 U.S. Treasury and government agency^ 0 0 0 0 0 0 0 0 0 4 Trading account 0 0 0 0 0 0 0 0 0 Investment account 15,326 15,024 15,642 15,658 15,762 15,862 15,715 15,687 15,670 6 Mortgage-backed securities 7,422 7,444 7,971 8,112 8,213 8,324 8,183 8,102 8,136 All other maturing in 7 One year or less 2,818 2,808 2,984 2,871 2,864 2,930 2,866 2,914 2,865 8 Over one through five years 3,514 3,203 3,130 3,109 3,110 3,088 3,245 3,247 3,246 9 Over five years 1,572 1,569 1,558 1,565 1,575 1,520 1,421 1,424 1,424 10 Other securities 0 0 0 0 0 0 0 0 0 11 Trading account 0 0 0 0 0 0 0 0 0 n Investment account 17,292 17,359 17,508 17,518 16,636 16,687 16,706 16,762 17,014 13 States and political subdivisions, by maturity 11,269 11,331 11,408 11,364 10,116 10,082 10,037 10,035 10,084 14 One year or less 806 905 974 1,055 1,051 1,031 1,090 1,103 1,130 15 Over one year 10,463 10,426 10,433 10,309 9,066 9,050 8,947 8,932 8,954 16 Other bonds, corporate stocks, and securities 6,023 6,028 6,100 6,154 6,520 6,605 6,670 6,726 6,930 17 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold5 23,518 25,070 19,114 17,313 17,160 19,397 18,539 21,023 18,644 19 To commercial banks 10,330 12,986 9,491 9,478 9,206 12,082 10,965 13,879 11,004 70 To nonbank brokers and dealers in securities 9,606 7,909 6,926 4,474 4,462 4,733 4,642 4,408 4,573 71 To others 3,583 4,175 2,696 3,361 3,492 2,581 2,932 2,735 3,067 77 Other loans and leases, gross 173,840 175,515 174,636 176,522 177,060 176,440 176,447 176,609 175,931 73 Other loans, gross 168,134 169,819 168,910 170,806 171,403 170,815 170,801 170,973 170,304 74 Commercial and industrial 56,214 56,581 57,339 59,348 58,910 58,547 58,350 58,894 58,351 75 Bankers acceptances and commercial paper 353 380 416 376 506 485 551 526 555 76 All other 55,861 56,201 56,924 58,972 58,404 58,062 57,799 58,368 57,796 77 U.S. addressees 55,172 55,625 56,336 58,458 57,831 57,528 57,219 57,860 57,280 78 Non-U.S. addressees 689 576 588 514 573 534 580 508 516 ?9 Real estate loans 54,292 54,741 55,101 55,590 55,632 55,942 56,312 56,748 57,306 30 Revolving, home equity 3,540 3,553 3,563 3,577 3,596 3,610 3,622 3,635 3,655 31 All other 50,751 51,188 51,538 52,013 52,036 52,332 52,690 53,113 53,651 32 To individuals for personal expenditures 19,650 19,623 19,741 19,607 19,649 19,716 19,819 19,912 19,883 33 To depository and financial institutions 19,920 19,695 19,555 18,882 20,291 19,263 18,600 18,157 17,583 34 Commercial banks in the United States 8,425 8,750 8,480 8,314 8,446 8,852 8,464 8,234 7,520 35 Banks in foreign countries 3,499 2,945 2,881 2,713 3,960 3,077 2,818 2,810 2,814 36 Nonbank depository and other financial institutions 7,996 8,000 8,194 7,855 7,885 7,334 7,318 7,113 7,250 37 For purchasing and carrying securities 6,396 7,210 5,738 5,964 5,873 6,013 6,349 6,468 6,239 38 To finance agricultural production 155 162 163 156 149 153 136 141 144 39 To states and political subdivisions 5,976 5,881 5,879 5,855 5,852 5,837 5,940 5,934 5,919 40 To foreign governments and official institutions 506 664 561 485 395 372 513 452 456 41 All other 5,025 5,261 4,833 4,918 4,653 4,972 4,782 4,266 4,421 42 Lease financing receivables 5,707 5,696 5,725 5,717 5,657 5,625 5,646 5,636 5,627 43 LESS: Unearned income 1,657 1,663 1,754 1,787 1,719 1,734 1,744 1,737 1,749 44 Loan and lease reserve 12,399 12,138 12,149 12,145 12,071 12,108 12,110 12,115 12,106 45 Other loans and leases, net6 159,784 161,714 160,733 162,591 163,269 162,598 162,593 162,757 162,076 46 All other assets7 62,477 55,016 55,649 53,357 51,511 54,699 52,942 50,012 49,638 47 Total assets 305,985 301,557 291,506 290,873 291,225 292,454 293,238 290,364 283,701 Deposits 48 Demand deposits 61,690 51,370 52,175 49,420 54,126 49,537 51,908 47,267 47,605 49 Individuals, partnerships, and corporations 42,822 36,560 36,974 34,630 37,002 35,062 37,633 32,948 32,976 50 States and political subdivisions 1,742 705 717 552 894 617 695 530 423 51 U.S. government 242 606 771 581 226 216 780 594 594 52 Depository institutions in the United States 4,847 4,827 4,669 4,767 5,615 4,926 4,078 5,041 5,281 53 Banks in foreign countries 6,352 5,325 5,559 5,120 5,129 4,527 4,587 4,423 4,944 54 Foreign governments and official institutions 683 798 689 653 637 625 582 651 472 55 Certified and officers' checks 5,002 2,549 2,795 3,116 4,622 3,565 3,553 3,078 2,915 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,467 8,352 8,215 8,164 8,407 8,271 8,175 8,013 8,095 57 Nontransaction balances 115,221 114,540 113,768 113,469 113,833 113,232 113,407 113,045 113,216 58 Individuals, partnerships, and corporations 105,074 104,126 103,441 103,095 103,590 102,943 103,125 102,597 102,889 59 States and political subdivisions 7,745 7,986 7,805 7,840 7,708 7,736 7,733 7,853 7,775 60 U.S. government 32 31 32 30 30 30 30 30 33 61 Depository institutions in the United States 2,123 2,142 2,243 2,254 2,253 2,257 2,255 2,300 2,264 67. Foreign governments, official institutions, and banks 247 254 247 250 251 266 263 265 254 63 Liabilities for borrowed money 62,795 67,984 58,638 61,644 57,522 63,750 62,808 64,406 58,444 64 Borrowings from Federal Reserve Banks 0 0 0 0 0 700 0 1,700 0 65 Treasury tax-and-loan notes 2,588 3,130 3,045 3,926 2,882 1,172 3,564 3,277 3,876 66 All other liabilities for borrowed money 60,207 64,854 55,592 57,718 54,639 61,877 59,244 59,428 54,568 67 Other liabilities and subordinated notes and debentures 29,262 30,673 30,216 29,707 28,515 28,742 27,951 28,528 27,726 68 Total liabilities 277,435 272,920 263,013 262,404 262,402 263,532 264,248 261,258 255,085 69 Residual (total assets minus total liabilities)9 28,550 28,637 28,494 28,469 28,824 28,922 28,989 29,105 28,616 MEMO 70 Total loans and leases (gross) and investments adjusted ' 211,222 211,231 208,929 209,219 208,967 207,452 207,978 207,966 208,736 71 Total loans and leases (gross) adjusted 178,604 178,848 175,778 176,043 176,568 174,902 175,557 175,518 176,051 72 Time deposits in amounts of $100,000 or more 43,737 43,612 42,952 42,351 42,204 42,856 42,770 42,556 42,365 73 U.S. Treasury securities maturing in one year or less 3,103 2,821 3,183 2,758 2,742 2,821 2,826 2,835 2,788 1. These data also appear in the Board's H.4.2 (504) release. For address, see 7. Includes trading account securities. inside front cover. 8. Includes federal funds purchased and securities sold under agreements to 2. Excludes trading account securities. repurchase. 3. Not available due to confidentiality. 9. Not a measure of equity capital for use in capital adequacy analysis or for 4. Includes U.S. government-issued or guaranteed certificates of participation other analytic uses. in pools of residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commer- 5. Includes securities purchased under agreements to resell. cial banks. Digitized for FRAS6E. RIn cludes allocated transfer risk reserve. 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 July 5R July 12R July 19R July 26' Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 1 Cash and due from depository institutions ... 10,832 11,764 11,274 11,954 11,571 12,477 12,368 12,433 11,320 2 Total loans and securities 132,356 132,149 132,943 138,519 136,085 137,544 137,463 137,693 138,401 3 U.S. Treasury and government agency securities 8,664 8,556 8,664 8,425 7,936 8,089 8,428 8,226 7,911 4 Other securities 5,944 5,930 5,922 6,018 6,047 6,088 5,759 5,815 5,899 5 Federal funds sold 3,960 6,535 4,673 7,868 5,970 6,506 4,492 6,781 7,769 6 To commercial banks in the United States . 2,743 5,402 3,630 6,685 4,658 5,338 2,962 5,707 6,630 7 To others 1,217 1,133 1,043 1,183 1,312 1,168 1,530 1,074 1,139 8 Other loans, gross 113,788 111,128 113,684 116,208 116,132 116,861 118,784 116,871 116,822 9 Commercial and industrial 72,120 70,320 71,758 7733,,999922 7733,,447766 7733,,337722 7744,,660077 7733,,229988 73,193 10 Bankers acceptances and commercial paper 1,761 1,664 1,733 1,712 1,533 1,832 1,850 1,794 1,781 11 All other 70,359 68,656 70,025 72,280 71,943 71,540 72,757 71,504 71,412 12 U.S. addressees 68,458 66,699 68,080 70,385 70,079 69,695 70,885 69,644 69,590 13 Non-U.S. addressees 1,901 1,957 1,945 1,895 1,864 1,845 1,872 1,860 1,822 14 Loans secured by real estate 15,389 15,458 15,666 15,734 15,604 16,142 16,326 16,573 16,552 15 To financial institutions 21,801 21,252 21,929 22,265 22,584 22,656 23,022 22,539 22,914 16 Commercial banks in the United States.. 16,639 16,350 16,932 17,103 17,233 17,254 17,276 16,812 17,115 17 Banks in foreign countries 1,521 1,235 1,274 1,422 1,409 1,314 1,594 1,590 1,657 18 Nonbank financial institutions 3,641 3,667 3,723 3,740 3,942 4,088 4,152 4,137 4,142 19 To foreign governments and official institutions 629 630 629 633 632 623 639 636 629 20 For purchasing and carrying securities .... 2,160 1,799 1,902 1,830 2,168 2,050 2,404 2,203 1,775 21 All other3 1,689 1,669 1,800 1,754 1,668 2,018 1,786 1,622 1,759 22 Other assets (claims on nonrelated parties) .. 32,869 33,859 33,552 35,179 35,273 35,767 35,171 35,166 35,828 23 Net due from related institutions 17,602 15,407 16,494 16,124 14,310 12,951 15,459 14,038 13,046 24 Total assets 193,660 193,182 194,264 220011,,777788 119977,,224400 119988,,773366 220000,,446600 119999,,333300 198,597 25 Deposits or credit balances due to other than directly related institutions ••••>• 49,260 49,295 50,229 50,535 49,792 50,161 51,042 49,959 49,768 26 Transaction accounts and credit balances . 3,438 3,340 3,323 3,397 33,,553355 33,,115511 3,753 3,383 3,235 27 Individuals, partnerships, and corporations 2,168 2,053 2,090 2,090 2,182 1,994 2,177 2,119 2,020 28 Other 1,270 1,287 1,233 1,307 1,353 1,157 1,576 1,264 1,215 29 Nontransaction accounts 45,822 45,955 46,906 47,138 46,257 47,010 4477,,228899 46,576 46,533 30 Individuals, partnerships, and corporations 38,254 38,108 38,336 39,077 38,749 38,939 38,750 38,716 38,583 31 Other 7,568 7,847 8,570 8,061 7,508 8,071 8,539 7,860 7,950 32 Borrowings from other than directly related institutions 86,942 81,584 84,520 85,487 88,163 85,625 87,961 87,881 84,538 33 Federal funds purchased 42,290 36,447 38,285 39,069 42,046 3377,,007700 3388,,004444 38,992 35,462 34 From commercial banks in the United States 23,565 21,640 18,653 19,644 21,884 18,945 19,941 20,380 18,200 35 From others 18,725 14,807 19,632 19,425 20,162 18,125 18,103 18,612 17,262 36 Other liabilities for borrowed money 44,652 45,137 46,235 46,418 46,117 48,555 49,917 48,889 49,076 37 To commercial banks in the United States 30,000 29,298 30,197 30,132 29,547 32,742 33,666 33,634 33,570 38 To others 14,652 15,839 16,038 16,286 16,570 15,813 16,251 15,255 15,506 39 Other liabilities to nonrelated parties 33,367 34,239 34,803 36,307 36,632 37,815 36,536 36,331 37,139 40 Net due to related institutions 24,091 28,065 24,713 29,449 22,653 25,133 24,918 25,159 27,153 41 Total liabilities 193,660 193,182 194,264 201,778 197,240 198,736 200,460 199,330 198,597 MEMO 42 Total loans (gross) and securities adjusted .. 112,974 110,397 112,381 114,731 114,194 114,952 117,225 115,174 114,656 43 Total loans (gross) adjusted 98,366 95,911 97,795 100,288 100,211 100,775 103,038 101,133 100,846 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 • November 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 11998844 11998855 11998866 11998877 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. June 1 All holders—Individuals, partnerships, and corporations 302.7 321.0 363.6 343.5 328.6 346.5 337.8 354.7 330.4 329.3 2 Financial business 31.7 32.3 41.4 36.3 33.9 37.2 34.8 38.6 36.3 33.0 3 Nonfinancial business 166.3 178.5 202.0 191.9 184.1 194.3 190.3 201.2 182.2 185.9 4 Consumer 81.5 85.5 91.1 90.0 86.9 89.8 87.8 88.3 87.4 86.6 5 Foreign 3.6 3.5 3.3 3.4 3.5 3.4 3.2 3.7 3.7 2.9 6 Other 19.7 21.2 25.8 21.9 20.3 21.9 21.7 22.8 20.7 21.0 Weekly reporting banks 1988 1989 11998844 11998855 11998866 11998877 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. June 7 All holders—Individuals, partnerships, and corporations 157.1 168.6 195.1 183.8 181.8 191.5 185.3 198.3 181.9 182.2 8 Financial business 25.3 25.9 32.5 28.6 27.0 30.0 27.2 30.5 27.2 25.4 9 Nonfinancial business 87.1 94.5 106.4 100.0 98.2 103.1 101.5 108.7 98.6 99.8 10 Consumer 30.5 33.2 37.5 39.1 41.7 42.3 41.8 42.6 41.1 42.4 11 Foreign 3.4 3.1 3.3 3.3 3.4 3.4 3.1 3.6 3.3 2.9 12 Other 10.9 12.0 15.4 12.7 11.4 12.8 11.7 12.9 11.7 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 1989 1984 1985 1986 1987 1988 IInnssttrruummeenntt Dec. Dec. Dec. Dec. Dec. Feb. Mar. Apr. May June July Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 237,586 298,779 329,991 357,129 455,017 487,771 492,821 494,292 497,369 503,445 506,095 Financial companies' Dealer-placed paper 2 Total 56,485 78,443 101,072 101,958 159,947 173,944 172,950 170,549 167,795 167,681 179,354 3 Bank-related (not seasonally adjusted) 2,035 1,602 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper4 4 Total 110,543 135,320 151,820 173,939 192,442 201,997 205,374 207,231 206,497 211,020 205,847 5 Bank-related (not seasonally adjusted) 42,105 44,778 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies5 70,558 85,016 77,099 81,232 102,628 111,830 114,497 116,512 123,077 124,744 121,217 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 78,364 68,413 64,974 70,565 66,631 62,812 62,458 64,357 62,396 64,182 65,558 Holder 8 Accepting banks 9,811 11,197 13,423 10,943 9,086 9,401 8,336 9,616 8,908 9,333 9,370 9 Own bills 8,621 9,471 11,707 9,464 8,022 8,497 7,642 8,107 8,115 8,399 8,279 10 Bills bought 1,191 1,726 1,716 1,479 1,064 904 693 1,509 794 934 1,076 Federal Reserve Banks 11 Own account 0 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents 671 937 1,317 965 1,493 1,579 1,544 1,400 1,374 1,177 1,026 13 Others 67,881 56,279 50,234 58,658 56,052 51,832 52,579 53,340 52,113r 53,672 55,163 Basis 14 Imports into United States 17,845 15,147 14,670 16,483 14,984 15,588 14,755 15,234 14,900 15,477 15,231 15 Exports from United States 16,305 13,204 12,960 15,227 14,410 13,927 13,581 14,371 14,452 15,040 15,288 16 All other 44,214 40,062 37,344 38,855 37,237 33,297 34,122 34,752 33,044 33,666 35,040 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 Period Av r e a r t a e ge Av r e a r te a ge 1986 —Mar. 7 9.00 198 6 8.33 1987 —Jan. ... 7.50 1988 —Jan. Apr. 21 8.50 198 7 8.21 Feb. . 7.50 Feb. July 11 8.00 198 8 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. June 1989 —Feb. 10 11.00 July. 24 11.50 Aug. June 5 11.00 Sept. July 31 10.50 NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • November 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 May June July Aug. July 28 Aug. 4 Aug. 11 Aug. 18 MONEY MARKET RATES 1 Federal funds1,2 6.80 6.66 7.57 9.81 9.53 9.24 8.99 9.14 8.95 8.98 9.04 2 Discount window borrowing1, 3 6.32 5.66 6.20 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Commercial paper4, 3 1-month 6.61 6.74 7.58 9.58 9.34 8.95 8.79 8.86 8.57 8.77 8.87 4 3-month 6.49 6.82 7.66 9.47 9.11 8.68 8.57 8.59 8.30 8.50 8.66 5 6-month 6.39 6.85 7.68 9.29 8.80 8.35 8.32 8.27 7.99 8.20 8.40 Finance paper, directly placed4,5 6 1-month 6.57 6.61 7.44 9.48 9.24 8.80 8.67 8.75 8.43 8.65 8.75 7 3-month 6.38 6.54 7.38 9.27 8.77 8.32 8.20 8.19 8.03 8.13 8.14 8 6-month 6.31 6.37 7.14 8.97 8.22 7.80 7.49 7.70 7.38 7.44 7.49 Bankers acceptances5,6 9 3-month 6.38 6.75 7.56 9.35 8.97 8.54 8.47 8.46 8.15 8.41 8.57 10 6-month 6.28 6.78 7.60 9.15 8.66 8.19 8.22 8.09 7.86 8.13 8.32 Certificates of deposit, secondary market7 11 1-month 6.61 6.75 7.59 9.61 9.35 8.96 8.77 8.89 8.55 8.74 8.87 12 3-month 6.51 6.87 7.73 9.59 9.20 8.76 8.64 8.69 8.35 8.56 8.76 13 6-month 6.50 7.01 7.91 9.60 9.09 8.59 8.56 8.52 8.21 8.43 8.67 14 Eurodollar deposits. 3-month8 6.70 7.07 7.85 9.66 9.28 8.85 8.71 8.84 8.48 8.54 8.75 U.S. Treasury bills Secondary market9 15 3-month 5.97 5.78 6.67 8.43 8.15 7.88 7.90 7.98 7.71 7.92 7.95 16 6-month 6.02 6.03 6.91 8.41 7.93 7.61 7.74 7.62 7.45 7.66 7.82 17 1-year 6.07 6.33 7.13 8.31 7.84 7.36 7.61 7.35 7.20 7.56 7.72 Auction average10 18 3-month 5.98 5.82 6.68 8.40 8.22 7.92 7.91 8.09 7.65 7.94 8.01 19 6-month 6.03 6.05 6.92 8.39 8.00 7.63 7.72 7.73 7.35 7.70 7.83 20 1-year 6.07r 6.33 7.17 8.44 8.18 7.58 7.45 n.a. 7.22 n.a. n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds" Constant maturities 21 1-year 6.45 6.77 7.65 8.98 8.44 7.89 8.18 7.86 7.73 8.12 8.30 22 2-year 6.86 7.42 8.10 9.02 8.41 7.82 8.14 7.75 7.61 8.01 8.26 23 3-year 7.06 7.68 8.26 8.98 8.37 7.83 8.13 7.77 7.66 8.01 8.23 24 5-year 7.30 7.94 8.47 8.91 8.29 7.83 8.09 7.75 7.64 7.99 8.20 25 7-year 7.54 8.23 8.71 8.88 8.31 7.94 8.11 7.86 7.72 8.00 8.20 26 10-year 7.67 8.39 8.85 8.86 8.28 8.02 8.11 7.97 7.82 8.04 8.18 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. 28 30-year 7.78 8.59 8.96 8.83 8.27 8.08 8.12 8.08 7.91 8.10 8.17 Composite13 29 Over 10 years (long-term) 8.14 8.64 8.98 8.95 8.40 8.19 8.26 8.17 7.99 8.22 8.32 State and local notes and bonds Moody's series14 30 Aaa 6.95 7.14 7.36 7.22 6.79 6.69 6.67 6.60 6.72 6.66 6.66 31 Baa 7.76 8.17 7.83 7.66 7.27 7.17 7.03 7.20 6.90 7.00 7.10 32 Bond Buyer series15 7.32 7.63 7.68 7.25 7.02 6.96 7.06 6.95 6.86 7.02 7.09 Corporate bonds Seasoned issues16 33 All industries 9.71 9.91 10.18 9.97 9.50 9.34 9.36 9.32 9.24 9.30 9.38 34 Aaa 9.02 9.38 9.71 9.59 9.10 8.93 8.96 8.91 8.81 8.92 8.99 35 Aa 9.47 9.68 9.94 9.77 9.29 9.14 9.14 9.10 9.02 9.09 9.17 36 A 9.95 9.99 10.24 10.01 9.59 9.42 9.45 9.41 9.34 9.38 9.46 37 Baa 10.39 10.58 10.83 10.48 10.03 9.87 9.88 9.86 9.77 9.82 9.90 38 A-rated, recently offered utility bonds17 9.61 9.95 n.a. n.a. n.a. n.a. n.a. 9.45 9.54 9.56 9.55 MEMO: Dividend/price ratio18 39 Preferred stocks 8.76 8.37 9.23 9.32 8.96 8.81 8.75 8.69 8.69 8.69 8.87 40 Common stocks 3.48 3.08 3.64 3.52 3.44 3.38 3.28 3.31 3.28 3.27 3.28 1. Weekly, monthly and annual figures are averages of all calendar days, places. Thus, average issuing rates in bill auctions will be reported using two where the rate for a weekend or holiday is taken to be the rate prevailing on the rather than three decimal places. preceding business day. The daily rate is the average of the rates on a given day 11. Yields are based on closing bid prices quoted by at least five dealers. weighted by the volume of transactions at these rates. 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 2. Weekly figures are averages for statement week ending Wednesday. are read from a yield curve at fixed maturities. Based on only recently issued, 3. Rate for the Federal Reserve Bank of New York. actively traded securities. 4. Unweighted average of offering rates quoted by at least five dealers (in the 13. Averages (to maturity or call) for all outstanding bonds neither due nor case of commercial paper), or finance companies (in the case of finance paper). callable in less than 10 years, including one very low yielding "flower" bond. Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. General obligations based on Thursday figures; Moody's Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 15. General obligations only, with 20 years to maturity, issued by 20 state and 150-179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 5. Yields are quoted on a bank-discount basis, rather than in an investment 16. Daily figures from Moody's Investors Service. Based on yields to maturity yield basis (which would give a higher figure). on selected long-term bonds. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Compilation of the Federal Reserve. This series is an estimate of the yield (which may be, but need not be, the average of the rates quoted by the dealers). on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 7. Unweighted average of offered rates quoted by at least five dealers early in call protection. Weekly data are based on Friday quotations. the day. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 8. Calendar week average. For indication purposes only. sample often issues: four public utilities, four industrials, one financial, and one 9. Unweighted average of closing bid rates quoted by at least five dealers. transportation. Common stock ratios on the 500 stocks in the price index. 10. Rates are recorded in the week in which bills are issued. Beginning with the NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the For address, see inside front cover. percentage yield (on a bank discount basis) that they would accept to two decimal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.36 STOCK MARKET Selected Statistics 1988 1989 IInnddiiccaattoorr 11998866 11998877 11998888 Dec. Jan. Feb. Mar. Apr. May June July Aug. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 136.03 161.78 149.97 155.35 160.35 165.08 164.56 169.38 175.30 180.76 185.15 192.93 2 Industrial 155.85 195.31 180.83 187.75 194.62 200.00 197.58 204.81 211.81 216.75 221.74 231.32 3 Transportation 119.87 140.39 134.01 144.06 153.09 162.66 153.85 164.32 169.05 173.47 179.32 197.53 4 Utility 71.36 74.29 72.22 74.81 75.87 77.84 87.16 79.69 84.21 87.95 90.40 92.90 5 Finance 147.19 146.48 127.41 128.83 132.26 137.19 146.14 143.26 146.82 154.08 157.78 164.86 6 Standard & Poor's Corporation (1941-43 = 10)' 236.39 287.00 265.88 276.51 285.41 294.01 292.71 302.25 313.93 323.73 331.92 346.61 7 American Stock Exchange (Aug. 31, 1973 = 50? 264.91 316.78 295.08 298.59 316.14 323.97 327.47 336.82 349.50 362.73 368.52 379.28 Volume of trading (thousands of shares) 8 New York Stock Exchange 141,020 188,922 161,386 135,233 168,204 169,223 159,024 161,863 171,495 180,680 162,501 171,683 9 American Stock Exchange 11,846 13,832 9,955 11,227 10,797 11,780 11,395 11,529 11,699 13,519 11,702r 14,538 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 36,840 31,990 32,740 32,740 32,530 31,480 32,130 32,610 33,140 34,730 34,360 33,940 Free credit balances at brokers4 11 Margin-account5 4,880 4,750 5,660 5,660 5,790 5,605 5,345 5,450 5,250 6,900 5,420 5,580 12 Cash-account 19,000 15,640 16,595 16,595 15,705 16,195 16,045 16,125 15,965 19,080 16,345 16,015 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 carry"margin securities" (as defined in the regulations) when such credit is companies. With this change the index includes 400 industrial stocks (formerly collateralized by securities. Margin requirements on securities other than options 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 are the difference between the market value (100 percent) and the maximum loan financial. value of collateral as prescribed by the Board. Regulation T was adopted effective 2. Beginning July 5, 1983, the American Stock Exchange rebased its index Oct. 15, 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. effectively cutting previous readings in half. 11, 1968; 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • November 1989 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1988 1989 AAccccoouunntt 11998866 11998877 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June SAIF-insured institutions 1 Assets 1,163,851 1,250,855 1,323,840 1,332,878 1,332,905 1,350,500 L,337,380R 1,339, LW 1,340,711' 1,345,453' 1,346,638' 1,339,256 2 Mortgages 697,451 721,593 754,389 760,790 763,001 764,513 767,191' 767,529' 769,393' 773,367' 774,344' 773,025 3 Mortgage-backed securities 158,193 201,828 211,195 211,833 212,512 214,587 211,337 213,119 215,172' 216,170' 216,280' 211,194 4 Contra-assets to mortgage assets' . 41,799 42,344 38,500 38,297 37,739 37,950 37,177r 37,038' 37,873' 37,810' 37,512' 37,508 5 Commercial loans 23,683 23,163 24,782 25,413 25,513 33,889 33,046' 33,045' 32,938' 32,884' 33,074' 33,137 6 Consumer loans 51,622 57,902 61,558 61,053 61.504 61,922 62,090r 62,083' 61,471' 61,758' 61,884' 60,744 7 Contra-assets to nonmortgage loans2 . 3,041 3,467 3,074 2,932 2,959 3,056 2,937r 3,014 3,165' 2,905' 2,923 3,151 S Cash and investment securities 164,844 169,717 183,178 184,637 179,830 186,986 178,771r 177,158r 177,151' 175,922' 174,308' 175,232 9 Other3 112,898 122,462 130,313 130,388 131,243 129,610 125,059' 126,237r 125,644' 126,067' 127,183' 126,583 10 Liabilities and net worth . 1,163,851 1,250,855 1,323,840 1,332,878 1,332,905 1,350,500 1,337,380' 1,339,119'' 1,340,711' 1,345,453' 1,346,638' 1,339,256 11 Savings capital 890,664 932,616 973,742 976,163 971,497 971,700 963,820' 957,358' 956,661' 954,495' 955,566' 960,084 1? Borrowed money 196,929 249,917 273,665 278,301 281,088 299,400' 299,418' 305,676' 312,986' 318,662' 318,362' 312,036 N FHLBB 100,025 116,363 123,436 124,368 127,548 134,168 135,712 140,089 146,007 147,993 146,513 144,224 14 Other 96,904 133,554 150,229 153,933 153,540 165,232' 163,706' 165,587' 166,979' 170,669' 171,849' 167,812 15 Other 23,975 21,941 26,021 27,558 29,178 24,216 29,74 lr 31,759' 29,597' 31,662' 33,613' 29,988 16 Net worth 52,282 46,382 50,412 50,855 51,143 55,185 58,847r 58,920' 57,430' 56,189' 54,649' 53,374 SAIF-insured federal savings banks 17 Assets 210,562 284,270 367,928 369,682 374,930 425,983 423,895 432,690 443,196 455,195 469,973 18 Mortgages 113,638 161,926 207,952 207,207 210,732 227,869 231,664 235,391 241,313 246,716 253,842 19 Mortgage-backed securities 29,766 45,826 56,399 56,630 57,815 64,957 62,770 65,896 68,053 69,935 73,930 20 Contra-assets to mortgage assets' . n.a. 9,100 10,982 10,894 10,901 13,140 12,266 12,672 13,168 13,027 13,237 21 Commercial loans n.a. 6,504 8,694 8,880 9,041 16,731 16,171 16,320 16,319 16,508 16,943 22 Consumer loans 13,180 17,696 22,420 22,421 22,679 24,222 25,050 25,991 26,148 26,725 27,995 23 Contra-assets to nonmortgage loans2 . n.a. 678 785 789 803 889 812 856 935 828 901 24 Finance leases plus interest n.a. 591 804 804 831 880 905 946 965 998 1,072 n.a. 25 Cash and investment ... n.a. 35,347 48,984 48,818 48,028 61,029 57,454 57,989 59,042 61,330 62,083 26 Other 19,034 24,069 34,442 29,178 29,942 35,428 33,974 34,646 36,313 37,367 38,052 27 Liabilities and net worth . 210,562 284,270 367,928 369,682 374,930 425,983 423,895 432,690 443,196 455,195 469,973 28 Savings capital 157,872 203,196 261,862 262,922 263,984 298,197 298,530 301,778 307,588 315,725 324,372 29 Borrowed money 37,329 60,716 80,674 80,779 83,628 99,286 98,304 102,902 107,179 109,997 114,847 30 FHLBB 19,897 29,617 37,245 37,510 39,630 46,265 46,470 48,951 51,531 53,513 55,457 31 Other 17,432 31,099 43,429 43,269 43,998 53,021 51,834 53,951 55,648 56,484 59,390 32 Other 4,263 5,324 7,374 7,667 8,319 8,075 8,275 8,885 8,608 9,311 10,185 33 Net worth 11,098 15,034 17,886 18,194 18,882 20,235 21,633 22,142 23,218 23,340 23,896 Savings banks 34 Assets 236,866 259,643 255,510 257,127 258,537 261,361 254,319 254,165 255,226 255,006 257,531 Loans 35 Mortgage 118,323 138,494 143,626 145,398 146,501 147,597 144,998 145,426 145,174 145,699 144,687 36 Other 35,167 33,871 32,879 33,234 33,791 31,269 32,450 32,369 33,194 32,329 34,464 Securities 37 U.S. government 14,209 13,510 11,182 10,896 10,804 11,457 10,485 10,315 10,318 10,391 10,154 38 Mortgage-backed securities 25,836 32,772 29,190 29,893 29,372 29,751 29,258 29,085 29,373 29,572 30,275 39 State and local government 2,185 2,003 1,878 1,872 1,887 1,848 1,835 1,829 1,814 1,798 1,984 40 Corporate and other . 20,459 18,772 17.234 16,886 16,773 17,822 15,964 15,812 15,984 15,588 15,763 41 Cash 6,894 5,864 5,463 4,825 5,093 7,050 5,532 5,465 5,972 6,068 5,591 42 Other assets 13,793 14,357 14,058 14.123 14,316 14,567 13,797 13,864 13,397 13,561 14,613 n a. 43 Liabilities 236,866 259,643 255,510 257,127 258,537 261,361 254,319 254,165 255,226 255,006 257,531 44 Deposits 192,194 201,497 197,665 197,925 199,092 202,058 195,452 195,308 199,399 199,538 199,790 45 Regular4 186,345 196,037 192,228 192,663 194,095 196,407 190,378 190,422 194,276 194,059 194,636 46 Ordinary savings .. 37,717 41,959 39,618 39,375 39,482 39.750 38,221 38,049 38,070 36,801 36,661 47 Time 100,809 112,429 116,387 117,712 119,026 121,148 118,612 119,109 123,162 125,378 126,185 48 Other 5,849 5,460 5,427 5,262 4,997 5,651 5,074 4,886 7,206 5,479 5,154 49 Other liabilities 25,274 35,720 35,001 35,997 36,012 36.169 33,782 33,642 30,500 30,020 33,084 50 General reserve accounts 18,105 20,633 20,151 20,324 20,462 20,337 20,138 20,336 20,338 20,254 19,874 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.37—Continued 1988 1989 AAccccoouunntt 11998866 11998877 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Credit unions5 51 Total assets/liabilities and capital 147,726 174,649 174,722 174,406 174,593 175,027 176,270 178,175 177,417 178,812 180,664 52 Federal 95,483 113,383 113,474 113,717 114,566 114,909 115,543 117,555 115,416 116,705 117,632 53 State 52,243 61,266 61,248 61,135 60,027 60,118 60,727 60,620 62,001 62,107 63,032 54 Loans outstanding 86,137 n a. 110,939 111,624 112,452 113,191 114,012 113,880 114,572 115,249 116,947 119,101 55 Federal 55,304 72,200 72,551 73,100 73,766 74,083 73,917 74,395 75,003 76,052 77,729 56 State 30,833 38,739 39,073 39,352 39,425 39,927 39,963 40,177 40,246 40,895 41,372 57 Savings 134,327 157,944 160,174 159,021 159,010 159,106 161,073 164,322 161,388 162,134 164,415 58 Federal 87,954 103,698 104,184 103,223 104,431 104,629 105,262 107,368 105,208 105,787 106,984 59 State 46,373 54,246 55,990 55,798 54,579 54,477 55,811 56,954 56,180 56,347 57,431 Life insurance companies 60 Assets 937,551 1,044,459 1,131,179 1,139,490 1,144,854 1,157,140 1,167,184 1,173,325 1,184,963 1,193,032 Securities 61 Government 84,640 84,426 87,588 88,883 89,510 88,167 88,747 88,168 88,941 87,938 62 United States6 59,033 57,078 59,874 60,621 61,108 60,685 61,042 60,800 61,175 60,220 63 State and local 11,659 10,681 11,054 11,069 11,189 11,126 11,036 10,736 10,848 11,068 64 Foreign 13,948 16,667 16,660 17,193 17,213 16,356 16,669 16,632 16,918 16,650 65 Business 492,807 569,199 630,086 633,390 638,350 644,894 655,149 659,826 665,843 673,826 n.a. n. a. 66 Bonds 401,943 472,684 525,336 527,419 532,197 538,053 545,970 550,630 556,396 563,453 67 Stocks 90,864 96,515 104,750 105,971 106,153 106,841 109,179 109,196 109,447 110,373 68 Mortgages 193,842 203,545 225,627 227,342 229,234 232,639 233,334 233,827 234,910 236,439 69 Real estate 31,615 34,172 35,892 36,892 36,673 37,972 38,112 38,690 38,942 39,071 70 Policy loans 54,055 53,626 53,149 53,157 53,148 53,020 53,210 53,265 53,364 53,536 71 Other assets 80,592 89,586 98,837 99,826 94,116 95,518 98,632 99,550 102,963 102,222 1. Contra-assets are credit-balance accounts that must be subtracted from the NOTE. FSLlC-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 Financial Statistics • November 1989 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1989 111999888666 111999888777 111999888888 Mar. Apr. May June July Aug. U.S. budget1 1 Receipts, total 769,091 854,143 908,953 68,276 128,952 71,115 108,317 66,255 76,257 2 On-budget 568,862 640,741 667,462 44,677 99,679 49,493 84,110 45,737 57,253 3 Off-budget 200,228 213,402 241,491 23,598 29,273 21,622 24,206 20,518 19,004 4 Outlays, total 990,258 1,003,830 1,064,044 104,055 88,381 96,581 100,528 84,494 98,407 5 On-budget 806,760 809,998 861,352 85,191 71,798 77,851 83,994 66,688 79,314 6 Off-budget 183,498 193,832 202,691 18,864 16,582 18,730 16,534 17,806 19,092 7 Surplus, or deficit (-), total -221,167 -149,687 -155,090 -35,779 40,572 -25,466 7,789 -18,239 -22,150 8 On-budget -237,898 -169,257 -193,890 -40,513 27,881 -28,358 116 -20,951 -22,062 9 Off-budget 16,731 19,570 38,800 4,735 12,691 2,891 7,673 2,712 -88 Source of financing (total) 10 Borrowing from the public 236,187 150,070 162,062 13,405 -1,291 10,214 1,098 -3,962 35,854 11 Operating cash (decrease, or increase (-)), -14,324 -5,052 -7,963 10,154 -38,788 21,396 -11,649 21,564 -3,235 12 Other 2 -696 4,669 991 12,221 -493 -6,144 2,762 636 -10,469 MEMO 13 Treasury operating balance (level, end of period) 31,384 36,436 44,398 14,672 53,461 32,065 43,713 22,149 25,384 14 Federal Reserve Banks 7,514 9,120 13,024 4,462 22,952 5,289 12,154 5,312 6,652 15 Tax and loan accounts 23,870 27,316 31,375 10,211 30,508 26,776 31,560 16,837 18,732 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 Fiscal Fiscal SSoouurrccee oorr ttyyppee year year 1987 1988 1989 1989 11998877 11998888 H2 HI H2 HI June July Aug. RECEIPTS 1 All sources 854,143 908,954 421,712 476,115 449,821 528,007 108,317 66,255 76,257 ? Individual income taxes, net 392,557 401,181 192,575 207,659 200,299 233,568 49,876 29,377 36,932 3 Withheld 322,463 341,435 170,203 169,300 179,600 174,230 33,338 28,343 34,200 4 Presidential Election Campaign Fund 33 33 4 28 4 28 4 1 1 Nonwithheld 142,957 132,199 31,223 101,614 29,880 121,563 18,509 2,424 4,076 6 Refunds 72,896 72,487 8,853 63,283 9,187 62,255 1,975 1,392 1,345 Corporation income taxes 7 Gross receipts 102,859 109,683 52,821 58,002 56,409 61,585 21,418 22,,992211 22,,887722 8 Refunds 18,933 15,487 7,119 8,706 7,384 7,812 849 880 909 9 Social insurance taxes and contributions, net 303,318 334,335 143,755 181,058 157,603 200,127 31,276 2277,,994411 2288,,447700 10 Employment taxes and contributions' 273,028 305,093 130,388 164,412 144,983 184,569 30,572 2255,,997799 2244,,112277 11 Self-employment taxes and contributions3 13,987 17,691 1,889 14,839 3,032 16,371 22,,338899 00 --773333 1? Unemployment insurance 25,575 24,584 10,977 14,363 10,359 13,279 294 1,614 3,983 13 Other net receipts4 4,715 4,659 2,390 2,284 2,262 2,277 410 348 360 14 Excise taxes 32,457 35,540 17,680 16,440 19,434 17,371 2,987 2,779 2,965 IS Customs deposits 15,085 16,198 7,993 7,913 8,535 8,350 1,482 1,495 1,774 16 Estate and gift taxes 7,493 7,594 3,610 3,863 4,054 4,583 736 689 753 17 Miscellaneous receipts 19,307 19,909 10,399 9,950 10,873 10,235 1,389 1,933 3,399 OUTLAYS 18 All types 1,003,830 1,064,055 532,839 513,210 553,217 565,958 100,528 84,494 98,407 19 National defense 281,999 290,361 146,995 143,080 150,496 148,098 29,037 21,220 26,018 70 International affairs 11,649 10,471 4,487 7,150 2,636 6,605 867 347 884488 71 General science, space, and technology .... 9,216 10,841 5,469 5,361 5,852 6,238 1,171 1,000 11,,220022 ?? Energy 4,115 2,297 1,468 555 1,966 2,221 509 106 287 73 Natural resources and environment 13,363 14,606 7,590 6,776 8,330 7,022 1,419 1,164 1,264 24 Agriculture 26,606 17,210 14,640 7,872 7,725 9,619 504 499 -274 ?5 Commerce and housing credit 6,182 18,808 3,852 5,951 20,274 4,129 973 1,494 2,070 76 Transportation 26,222 27,272 14,096 12,700 14,922 13,023 2,397 2,294 2,623 27 Community and regional development 5,051 5,294 2,075 2,765 2,690 1,833 563 535 649 78 Education, training, employment, and social services 29,724 31,938 15,592 15,451 16,152 18,096 22,,665544 22,,663377 33,,449933 79 Health 39,968 44,490 20,750 22,643 23,360 24,078 4,270 4,124 4,520 30 Social security and medicare 282,472 297,828 158,469 135,322 149,508 162,195 30,430 26,142 27,625 31 Income security 123,250 129,332 61,201 65,555 64,978 70,937 9,826 10,264 11,176 3? Veterans benefits and services 26,782 29,428 14,956 13,241 15,797 14,891 3,590 1,196 2,246 33 Administration of justice 7,548 9,223 4,291 4,761 4,778 5,233 851 847 886600 34 General government 5,948 7,658 3,560 4,337 5,137 3,858 1,140 -53 778855 35 General-purpose fiscal assistance 1,621 1,816 1,175 448 0 0 n.a. n.a. n.a. 36 Net interest6 138,570 151,748 71,933 76,098 78,317 86,009 13,376 14,003 16,011 37 Undistributed offsetting receipts -36,455 -36,967 -17,684 -17,766 -18,771 -18,131 -3,050 -3,325 -2,998 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 Domestic Nonfinancial Statistics • November 1989 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1987 1988 1989 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 2,313.1 2,354.3 2,435.2 2,493.2 2,555.1 2,614.6 2,707.3 2,763.6 n.a. 2 Public debt securities 2,309.3 2,350.3 2,431.7 2,487.6 2,547.7 2,602.2 2,684.4 2,740.9 2,799.9 3 Held by public 1,871.1 1,893.1 1,954.1 1,996.7 2,013.4 2,051.7 2,095.2 2,133.4 2,142.1 4 Held by agencies 438.1 457.2 477.6 490.8 534.2 550.4 589.2 607.5 n.a. 5 Agency securities 3.8 4.0 3.5 5.6 7.4 12.4 22.9 22.7 n.a. 6 Held by public 2.8 3.0 2.7 5.1 7.0 12.2 22.6 22.3 n.a. 7 Held by agencies 1.0 1.0 .8 .6 .5 .2 .3 .4 n.a. 8 Debt subject to statutory limit 2,295.0 2,336.0 2,417.4 2,472.6 2,532.2 2,586.9 2,669.1 2,725.6 2,784.6 9 Public debt securities 2,293.7 2,334.7 2,416.3 2,472.1 2,532.1 2,586.7 2,668.9 2,725.5 2,784.3 10 Other debt1 1.3 1.3 1.1 .5 .1 .1 .2 .2 .2 11 MEMO: Statutory debt limit 2,320.0 2,800.0 2,800.0 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 1989 TTyyppee aanndd hhoollddeerr 11998855 11998866 11998877 11998888 Q3 Q4 Q1 Q2 1 Total gross public debt 1,945.9 2,214.8 2,431.7 2,684.4 2,602.2 2,684.4 2,740.9 2,799.9 By type 2 Interest-bearing debt 1,943.4 2,212.0 2,428.9 2,663.1 2,599.9 2,663.1 2,738.3 2,797.4 3 Marketable 1,437.7 1,619.0 1,724.7 1,821.3 1,802.9 1,821.3 1,871.7 1,877.3 4 Bills 399.9 426.7 389.5 414.0 398.5 414.0 417.0 397.1 5 812.5 927.5 1,037.9 1,083.6 1,089.6 1,083.6 1,121.4 1,137.2 6 Bonds 211.1 249.8 282.5 308.9 299.9 308.9 318.4 328.0 7 Nonmarketable' 505.7 593.1 704.2 841.8 797.0 841.8 866.6 920.1 8 State and local government series 87.5 110.5 139.3 151.5 147.6 151.5 154.4 156.0 9 Foreign issues2 7.5 4.7 4.0 6.6 6.3 6.6 6.7 6.2 10 Government 7.5 4.7 4.0 6.6 6.3 6.6 6.7 6.2 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 78.1 90.6 99.2 107.6 106.2 107.6 110.4 112.3 13 Government account series3 332.2 386.9 461.3 575.6 536.5 575.6 594.7 645.2 14 Non-interest-bearing debt 2.5 2.8 2.8 21.3 2.3 21.3 2.6 2.5 By holder4 15 U.S. government agencies and trust funds 348.9 403.1 477.6 589.2 550.4 589.2 607.5 16 Federal Reserve Banks 181.3 211.3 222.6 238.4 229.2 238.4 228.6 17 Private investors 1,417.2 1,602.0 1,745.2 1,852.8 1,819.0 1,852.8 1,900.2 18 Commercial banks 198.2 203.5 201.2 195.0 203.0 195.0 n.a. 19 Money market funds 25.1 28.0 14.3 18.8 10.8 18.8 n.a. 20 Insurance companies 78.5 105.6 120.6 n.a. 135.0 n.a. n.a. 21 Other companies 59.0 68.8 84.6 86.1 86.0 86.1 n.a. n.a. 22 State and local Treasurys 226.7 262.8 282.6 n.a. 287.0 n.a. n.a. Individuals 23 Savings bonds 79.8 92.3 101.1 109.6 107.8 109.6 112.2 24 Other securities 75.0 70.5 72.3 77.8 76.7 77.8 n.a. 25 Foreign and international5 212.5 251.6 287.3 349.5 333.3 349.5 363.1 26 Other miscellaneous investors 462.4 518.9 581.2 n.a. 579.4 n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes tion Administration; depository bonds, retirement plan bonds, and individual non-interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated se- mutual savings banks, corporate pension trust funds, dealers and brokers, certain ries held by foreigners. U.S. Treasury deposit accounts, and federally-sponsored agencies. 3. Held almost entirely by U.S. Treasury agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds Statement of the Public Debt of the United States; data by holder. Treasury are actual holdings; data for other groups are Treasury estimates. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Par value; averages of daily figures, in millions of dollars 1989 1989 IItteemm 11998866 11998877 11998888 June' July Aug. July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 Immediate delivery2 1 U.S. Treasury securities 95,444 110,050 101,623 129,278 114,088r 119,895 104,347 145,649 143,096 114444,,001122 107,355 7755,,118866 By maturity ? Bills 34,247 37,924 29,387 30,772 29,002 30,998 27,649 36,086 32,046 38,808 27,320 21,298 3 Other within 1 year 2,115 3,271 3,426 3,391 2,697 2,665 1,747 3,722 2,301 3,167 2,293 2,506 4 1-5 years 24,667 27,918 27,777 34,861 31,584'" 36,322 29,682 38,283 44,954 41,428 37,646 23,293 5 5-10 years 20,455 24,014 24,939 35,669 33,578 31,428 29,775 42,417 42,940 33,861 24,882 19,250 6 Over 10 years 13,961 16,923 16,093 24,585 17,227 18,482 15,494 25,141 20,855 26,748 15,214 8,839 By type of customer 7 U.S. government securities dealers 3,669 2,936 2,761 3,198 3,093 3,823 3,369 4,190 3,606 66,,883333 33,,229900 11,,993344 8 U.S. government securities brokers 49,558 61,539 59,844 78,116 66,756' 71,928 61,919 84,570 87,017 8855,,447788 64,316 4455,,995500 9 All others3 42,217 45,575 39,019 47,964 44,238' 44,145 39,058 56,889 52,472 51,702 39,749 27,303 10 Federal agency securities 16,747 18,084 15,903 19,891 20,855' 19,023 17,906 21,099 23,080 20,746 14,337 17,169 11 Certificates of deposit 4,355 4,112 3,369 2,939 3,020 2,466 2,334 3,089 2,354 2,829 2,525 2,242 1? Bankers acceptances 3,272 2,965 2,316 2,508 2,592 1,909 2,280 2,577 1,977 1,950 1,569 1,870 13 Commercial paper 16,660 17,135 22,927 32,185 33,548 31,004 29,607 33,162 28,003 32,628 33,680 28,075 Futures contracts 14 Treasury bills 3,311 3,233 2,627 1,852 1,600 1,696 2,299 1,928 1,999 22,,665500 11,,551199 552233 15 Treasury coupons 7,175 8,963 9,695 12,837 9,012' 10,520 7,366' 12,359 10,277 12,717 11,542 6,724 16 Federal agency securities 16 5 1 3 21 8 28 37 0 20 0 0 Forward transactions5 17 U.S. Treasury securities 1,876 2,029 2,095 1,526 1,654' 3,004 1,837 1,726 3,049 1,739 6,202 11,,993300 18 Federal agency securities 7,830 9,290 8,008 9,829 10,262' 12,068 8,458' 8,758 14,619 16,234 10,760 7,866 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 • November 1989 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1989 1989 IItteemm 11998866 11998877 June Julyr Aug. Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 Positions Net immediate2 1 U.S. Treasury securities 12,912 -6,216 -22,765 -6,292' -171 3,940 -1,087 -8,146 4,864 5,825 14,629 ? Bills 12,761 4,317 2,238 368' 1,329 10,490 834 83 10,320 14,070 19,490 3 Other within 1 year 3,705 1,557 -2,236 -435 -849 -838 -1,372 -712 -725 -911 -915 4 1-5 years 9,146 649 -3,020 4,650' 11,643 8,029 12,945 9,803 8,884 5,208 7,342 5 5-10 years -9,505 -6,564 -9,663 -5,052' -7,693 -8,763 -10,313 -11,387 -8,843 -7,964 -6,454 6 Over 10 years -3,197 -6,174 -10,084 -5,822 -4,600 -4,978 -3,181 -5,933 -4,773 -4,578 -4,834 7 Federal agency securities 32,984 31,911 28,230 29,467' 31,289 35,288 35,063 35,907 38,979 33,615 33,459 8 Certificates of deposit 10,485 8,188 7,300 6,037 7,029 6,727 6,617 6,875 6,2% 6,433 7,353 9 Bankers acceptances 5,526 3,660 2,486 2,357 2,122 1,875 2,084 2,179 1,670 1,654 1,941 10 Commercial paper 8,089 7,496 6,152 8,830 9,895 7,490 11,643 8,594 6,445 6,510 6,793 Futures positions 11 Treasury bills -18,059 -3,373 -2,210 -4,741' -5,792 -5,372 -5,400 -5,997 -5,554 -5,170 -4,724 12 Treasury coupons 3,473 5,988 6,224 -2,311' -3,273 -2,661 -4,526 -3,223 -3,012 -1,756 -2,230 13 Federal agency securities -153 -95 0 14 51 7 48 15 17 0 0 Forward positions 14 U.S. Treasury securities -2,144 -1,211 346 -1,885 -1,334 -1,470 -1,036 -1,197 -1,410 -2,048 -1,448 15 Federal agency securities -11,840 -18,817 -16,348 -20,199' -19,556 -20,643 -19,968 -20,561 -24,089 -19,763 -19,168 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 98,913 126,709 136,327 166,152 164,417 155,036 171,910 167,902 165,846 156,449 154,204 17 Term 108,607 148,288 177,477 243,026 231,321 213,866 239,207 238,307 215,004 217,656 217,133 Repurchase agreements5 18 Overnight and continuing 141,823 170,763 172,695 229,554 227,095 216,145 227,671 222,246 235,355 226,947 218,650 19 Term 102,397 121,270 137,056 189,841 195,700 182,019 212,919 210,570 185,537 180,727 175,285 1. Data for dealer positions and sources of financing are obtained from reports reverses to maturity, which are securities that were sold after having been submitted to the Federal Reserve Bank of New York by the U.S. Treasury obtained under reverse repurchase agreements that mature on the same day as the securities dealers on its published list of primary dealers. securities. Data for immediate positions do not include forward positions. Data for positions are averages of daily figures, in terms of par value, based on 3. Figures cover financing involving U.S. Treasury and federal agency securithe number of trading days in the period. Positions are net amounts and are shown ties, negotiable CDs, bankers acceptances, and commercial paper. on a commitment basis. Data for financing are in terms of actual amounts 4. Includes all reverse repurchase agreements, including those that have been borrowed or lent and are based on Wednesday figures. arranged to make delivery on short sales and those for which the securities 2. Immediate positions are net amounts (in terms of par values) of securities obtained have been used as collateral on borrowings, that is, matched agreements. owned by nonbank dealer firms and dealer departments of commercial banks on 5. Includes both repurchase agreements undertaken to finance positions and a commitment, that is, trade-date basis, including any such securities that have "matched book" repurchase agreements. been sold under agreements to repurchase (RPs). The maturities of some NOTE. Data on positions for the period May 1 to Sept. 30, 1986, are partially repurchase agreements are sufficiently long, however, to suggest that the securi- estimated. ties involved are not available for trading purposes. Immediate positions include Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1989 AAggeennccyy 11998855 11998866 11998877 11998888 Mar. Apr. May June July 1 Federal and federally sponsored agencies 293,905 307,361 341,386 381,498 397,318 402,764 407,323 403,749' n.a. 2 Federal agencies 36,390 36,958 37,981 35,668 36,348 36,402 36,275 36,404' 36,453 3 Defense Department 71 33 13 8 8 7 7 7 7 4 Export-Import Bank 3 15,678 14,211 11,978 11,033 11,007 11,007 11,007 11,014' 11,014 5 Federal Housing Administration4 115 138 183 150 172 182 196 218 245 6 Government National Mortgage Association participation certificates5 2,165 2,165 1,615 0 0 0 0 0 0 7 Postal Service6 1,940 3,104 6,103 6,142 6,742 6,742 6,445 6,445 6,445 8 Tennessee Valley Authority 16,347 17,222 18,089 18,335 18,419 18,464 18,620 18,720 18,742 9 United States Railway Association6 74 85 0 0 0 0 0 0 0 10 Federally sponsored agencies7 257,515 270,553 303,405 345,830 360,970 366,362 371,048 367,345 n.a. 11 Federal Home Loan Banks 74,447 88,752 115,725 135,834 149,950 154,146 156,354 153,892 151,487 12 Federal Home Loan Mortgage Corporation 11,926 13,589 17,645 22,797 23,392 22,676 21,620 22,156 25,690 13 Federal National Mortgage Association 93,896 93,563 97,057 105,459 104,666 104,675 105,404 106,308 109,926 14 Farm Credit Banks8 68,851 62,478 55,275 53,127 52,069 51,678 53,375 52,387 53,158 15 Student Loan Marketing Association9 8,395 12,171 16,503 22,073 23,753 25,361 26,469 24,256 n.a. 16 Financing Corporation n.a. n.a. 1,200 5,850 6,450 6,980 6,980 7,500 7,500 17 Farm Credit Financial Assistance Corporation n.a. n.a. n.a. 690 690 846 846 846 n.a. MEMO 18 Federal Financing Bank debt1 153,373 157,510 152,417 142,850 141,864 141,162 140,220 139,568 138,814 Lending to federal and federally sponsored agencies 19 Export-Import Bank 15,670 14,205 11,972 11,027 11,001 11,001 11,001 11,008' 11,008 20 Postal Service6 1,690 2,854 5,853 5,892 6,492 6,492 6,195 6,195 6,195 21 Student Loan Marketing Association 5,000 4,970 4,940 4,910 4,910 4,910 4,910 4,910 4,910 22 Tennessee Valley Authority 14,622 15,797 16,709 16,955 17,039 17,084 17,240 17,340 17,362 23 United States Railway Association6 74 85 0 0 0 0 0 0 0 Other Lending13 24 Farmers Home Administration 64,234 65,374 59,674 58,496 57,841 57,086 56,311 55,586 54,911 25 Rural Electrification Administration 20,654 21,680 21,191 19,246 19,195 19,230 19,236 19,236 19,257 26 Other 31,429 32,545 32,078 26,324 25,386 25,359 25,327 25,293' 25,171 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 • November 1989 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1989 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998866 11998877 11998888 oorr uussee Jan. Feb. Mar. Apr. May June July' Aug. 1 All issues, new and refunding1 147,011 102,407 114,522 6,640 8,054 8,626 7,464 7,435 13,775 8,735 8,710 Type of issue 2 General obligation 46,346 30,589 30,312 1,784 3,955 2,185 2,301 2,342 4,960 3,789 2,079 3 Revenue 100,664 71,818 84,210 4,856 4,099 6,441 5,163 5,093 8,815 4,946 6,631 Type of issuer 4 State 14,474 10,102 8,830 280 1,896 256 1,407 392 1,989 970 918 5 Special district and statutory authority 89,997 65,460 74,409 4,882 3,832 5,962 4,238 4,979 8,033 4,868 6,212 6 Municipalities, counties, and townships 42,541 26,845 31,193 1,478 2,326 2,408 1,819 2,064 3,753 2,897 1,580 7 Issues for new capital, total 83,492 56,789 79,665 4,141 5,222 6,486 6,061 5,938 10,078 6,816 5,658 Use of proceeds 8 Education 12,307 9,524 15,021 827 826 1,055 1,225 1,024 2,678 998 1,171 9 Transportation 7,246 3,677 6,825 344 382 445 743 748 576 500 555 10 Utilities and conservation 14,594 7,912 8,496 1,335 847 901 759 467 1,058 551 712 11 Social welfare 11,353 11,106 19,027 509 743 1,329 1,048 1,376 1,509 1,632 1,149 12 Industrial aid 6,190 7,474 5,624 293 250 253 374 361 329 440 408 13 Other purposes 31,802 18,020 24,672 834 2,174 2,503 1,912 1,962 3,928 2,695 1,663 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,, 11998866 11998877 oorr uussee Dec. Jan. Feb. Mar. Apr. May June July 424,737r 392,156 408,978' 12,389 15,494' 14,693 26,188r 14,384 21,090' 23,905 15,430 2 Bonds2 356,304' 325,648 351,177' 10,338 14,243 12,158 25,577 13,396 19,489' 21,085 12,075 Type of offering 232,742' 209,279 200,299' 10,203 11,383 9,964 22,995 11,471 17,583' 18,177' 10,700 80,760 92,070 127,700 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 42,801' 24,299 23,178 135 2,860 2,194 2,582 1,925 1,906' 2,903' 1,500 Industry group 90,788' 61,666 69,708 1,485 1,660 1,319 7,456 1,457 7,716 3,273 2,659 41,909' 49,327 61,985' 748 2,047 1,118 882 843 2,162' 1,628 1,204 10,423' 11,974 9,975 0 0 102 0 100 150 480 0 30,973'' 23,004 19,318 264 665 670 153 1,695 385 2,936 1,173 16,441' 7,340 5,901 158 0 230 63 453 122 4 300 165,770' 172,343 184,286 7,683 9,871 8,719' 17,023 8,848 8,956' 12,764 6,739 12 Stocks3 68,433 66,508 57,802 2,051 1,251' 2,535 611' 988 1,601' 2,820' 3,355 Type 11,514 10,123 6,544 495 275 975 0' 495 325' 330' 920 50,316 43,225 35,911 1,556 976' 1,561' 611 493 1,276 2,485' 2,435 6,603 13,157 15,346 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 15,027 13,880 7,608 425 33 833' 127 135 330' 626' 594 10,617 12,888 8,449 89 32 270 26' 280 115 508' 438 2,427 2,439 1,535 0 220 0 53 169 39 0 0 19 Public utility 4,020 4,322 1,898 20 50' 11 108 0 192 125 25 1,825 1,458 515 59 5 19 0 93 224 25 29 34,517 31,521 37,798 1,459 911 1,402 297 310 702 1,536' 2,269 1. Figures which represent gross proceeds of issues maturing in more than one 3. Data are not available on a monthly basis. Before 1987, annual totals include year, are principal amount or number of units multiplied by olfering price. underwritten issues only. Excludes secondary offerings, employee stock plans, investment companies other SOURCES. IDD Information Services, Inc., the Board of Governors of the than closed-end, intracorporate transactions, equities sold abroad, and Yankee Federal Reserve System, and before 1989, the U.S. Securities and Exchange bonds. Stock data include ownership securities issued by limited partnerships. Commission. 2. Monthly data include only public offerings. 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 Dec. Jan. Feb. Mar. Apr. May Juner July INVESTMENT COMPANIES' 1 Sales of own shares2 381,260 271,237 25,780 29,014 22,741 23,149 25,496 24,661 25,817 25,495 2 Redemptions of own shares3 314,252 267,451 25,976 24,494 22,252 24,135 26,183 22,483 22,562 20,206 3 Net sales 67,008 3,786 -196 4,520 489 -986 -687 2,178 3,255 5,289 4 Assets4 453,842 472,297 472,297 487,204 482,697 483,067 497,329 509,781 515,814 535,922 5 Cash position5 38,006 45,090 45,090 49,661 47,908 46,262 48,788 49,177 48,428 48,549 6 Other 415,836 427,207 427,207 437,543 434,789 436,805 448,541 460,604 467,386 487,373 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 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2' 1 Corporate profits with inventory valuation and capital consumption adjustment 282.1 298.7 328.6 313.0 308.2 318.1 325.3 330.9 340.2 316.3 307.8 2 Profits before tax 221.6 266.7 306.8 281.0 276.2 288.8 305.3 314.4 318.8 318.0 296.0 3 Profits tax liability 106.3 124.7 137.9 132.7 127.3 129.0 138.4 141.2 143.2 144.4 134.9 4 Profits after tax 115.3 142.0 168.9 148.3 148.9 159.9 166.9 173.2 175.6 173.6 161.1 5 Dividends 91.3 98.7 110.4 100.0 102.8 105.7 108.6 112.2 115.2 118.5 120.9 6 Undistributed profits 24.0 43.3 58.5 48.3 46.1 54.2 58.3 61.1 60.4 55.1 40.2 7 Inventory valuation 6.7 -18.9 -25.0 -19.4 -20.4 -20.7 -28.8 -30.4 -20.1 -38.3 -21.0 8 Capital consumption adjustment 53.8 50.9 46.8 51.5 52.4 49.9 48.9 46.9 41.5 36.6 32.3 ATrade 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 A Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1988' 1989' IInndduussttrryy mmrr 11998888'' 11998899,,rr Ql Q2 Q3 Q4 Ql Q2 Q3' Q4' 1 Total nonfarm business 389.67 430.76 473.65 413.34 427.54 435.61 442.11 459.47 470.86 481.24 483.04 Manufacturing 2 Durable goods industries 71.01 78.30 82.23 75.28 77.38 79.15 80.56 81.26 82.97 82.51 82.17 3 Nondurable goods industries 74.88 88.01 99.67 82.69 85.24 89.62 92.76 93.96 98.57 102.90 103.27 Nonmanufacturing 4 Mining 11.39 12.66 12.22 12.61 13.15 12.53 12.38 12.15 12.70 12.34 11.70 Transportation 5 Railroad 5.92 7.06 7.85 6.96 6.99 6.84 7.45 8.02 7.37 7.24 8.75 6 Air 6.53 7.28 9.53 6.33 6.91 8.09 7.69 7.04 9.49 11.30 10.31 7 Other 6.40 7.00 7.37 7.06 7.05 7.08 6.89 8.07 7.40 7.22 6.79 Public utilities 8 Electric 31.63 32.03 34.65 30.80 31.11 32.07 33.69 33.69 35.34 34.96 34.61 9 Gas and other 13.25 14.64 16.11 14.25 14.49 14.61 15.04 17.12 16.67 15.58 15.08 10 Commercial and other 168.65 183.76 204.02 177.37 185.21 185.61 185.65 198.15 200.36 207.18 210.36 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 • November 1989 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1986 1987 AAccccoouunntt 11998833 11998844 11998855 Q2 Q3 Q4 QL Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer 83.3 89.9 111.9 123.4 135.3 134.7 131.1 134.7 141.6 141.1 2 Business 113.4 137.8 157.5 166.8 159.7 173.4 181.4 188.1 188.3 207.6 3 Real estate 20.5 23.8 28.0 29.8 31.0 32.6 34.7 36.5 38.0 39.5 4 Total 217.3 251.5 297.4 320.0 326.0 340.6 347.2 359.3 367.9 388.2 Less: 5 Reserves for unearned income 30.3 33.8 39.2 40.7 42.4 41.5 40.4 41.2 42.5 45.3 6 Reserves for losses 3.7 4.2 4.9 5.1 5.4 5.8 5.9 6.2 6.5 6.8 7 Accounts receivable, net 183.2 213.5 253.3 274.2 278.2 293.3 300.9 311.9 318.9 336.1 8 All other 34.4 35.7 45.3 49.5 60.0 58.6 59.0 57.7 64.5 58.2 9 Total assets 217.6 249.2 298.6 323.7 338.2 351.9 359.9 369.6 383.4 394.3 LIABILITIES 10 Bank loans 18.3 20.0 18.0 16.3 16.8 18.6 17.2 17.3 15.9 16.4 11 Commercial paper 60.5 73.1 99.2 108.4 112.8 117.8 119.1 120.4 124.2 128.4 Debt 12 Other short-term 11.1 12.9 12.7 15.8 16.4 17.5 21.8 24.8 26.9 28.0 13 Long-term 67.7 77.2 94.4 106.9 111.7 117.5 118.7 121.8 128.2 137.1 14 All other liabilities 31.2 34.5 41.5 40.9 45.0 44.1 46.5 49.1 48.6 52.8 15 Capital, surplus, and undivided profits 28.9 31.5 32.8 35.4 35.6 36.4 36.6 36.3 39.5 31.5 16 Total liabilities and capital 217.6 249.2 298.6 323.7 338.2 351.9 359.9 369.6 383.4 394.3 1. NOTE. Components may not add to totals because of rounding. Data after 1987:4 are currently 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 1989 TTyyppee 11998866 11998888 Mar. Apr. May June July 1 Total 172,060 205,810 234,529 240,186 244,882 245,861 249,322 251,126 Retail financing of installment sales 2 Automotive 26,015 35,782 36,548 37,696 38,415 38,816 39,042 39,183 3 Equipment 23,112 25,170 28,298 28,207 28,790 27,638 27,773 28,128 4 Pools of securitized assets2 n.a. n.a. n.a. 855 817 846 807 769 Wholesale 5 Automotive 23,010 30,507 33,300 33,528 34,383 34,534 34,021 33,233 6 Equipment 5,348 5,600 5,983 6,088 6,153 6,096 6,165 6,244 7 All other 7,033 8,342 9,341 9,682 9,852 9,929 9,862 10,001 8 Pools of securitized assets2 n.a. n.a. n.a. 0 0 0 0 0 Leasing 9 Automotive 19,827 21,952 24,673 25,584 25,544 26,011 26,515 26,701 10 Equipment 38,179 43,335 57,455 59,484 60,246 61,022 63,370 64,086 11 Pools of securitized assets2 n.a. n.a. n.a. 756 733 824 796 887 12 Loans on commercial accounts receivable and factored commercial accounts receivable 15,978 18,078 17,796 17,794 18,677 18,772 19,302 19,989 13 All other business credit 13,557 17,043 21,134 20,512 21,272 21,371 21,669 21,904 Net change 14 15,763 33,750 28,719 2,808 4,696 978 3,462 1,803 Retail financing of installment sales 15 Automotive 5,355 9,767 766 394 720 401 226 141 16 Equipment 629 2,058 3,128 -178 583 -1,152 135 354 17 Pools of securitized assets2 n.a. n.a. n.a. 173 -38 29 -39 -38 Wholesale 18 Automotive -978 7,497 2,793 -858 856 151 -513 -788 19 Equipment 780 252 383 -105 65 -56 69 79 20 All other 224 1,309 999 114 170 78 -68 139 21 Pools of securitized assets2 n.a. n.a. n.a. 0 0 0 0 0 Leasing 22 Automotive 3,552 2,125 2,721 736 -40 467 504 187 23 Equipment 3,411 5,156 14,120 1,439 762 776 2,348 716 24 Pools of securitized assets2 n.a. n.a. n.a. 57 -23 91 -28 91 25 Loans on commercial accounts receivable and factored commercial accounts receivable 213 2,100 -282 390 883 95 530 687 26 All other business credit 2,576 3,486 4,091 645 760 100 298 235 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. 1989 IItteemm 11998866 11998877 11998888 Feb. Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms' 1 Purchase price (thousands of dollars) 118.1 137.0 150.0 153.7 159.7 169.2 151.8 150.5 174.5 161.0 2 Amount of loan (thousands of dollars) 86.2 100.5 110.5 111.8 117.7 124.5 112.3 111.0 125.3 119.5 3 Loan/price ratio (percent) 75.2 75.2 75.5 73.5 74.4 75.0 75.3 75.2 73.8 75.6 4 Maturity (years) 26.6 27.8 28.0 28.3 27.7 28.4 28.3 27.8 28.6 28.3 5 Fees and charges (percent of loan amount)' 2.48 2.26 2.19 2.14 2.11 1.70 2.12 1.91 2.42 2.32 6 Contract rate (percent per year) 9.82 8.94 8.81 9.46 9.63 9.88 9.82 10.09 10.06 9.84 Yield (percent per year) 7 FHLBB series5 10.26 9.31 9.18 9.82 9.99 10.17 10.18 10.42 10.48 10.23 8 HUD series4 10.07 10.17 10.30 10.75 10.93 10.84 10.43 10.04 9.70 10.05 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 9.91 10.16 10.49 10.88 11.16 10.88 10.55 10.08 9.61 9.95 10 GNMA securities6 9.30 9.43 9.83 10.07 10.38 10.36 10.11 9.75 9.$5 9.48 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 98,048 95,030 101,329 101,922 101,991 102,191 102,564 103,309 104,421 105,896 1? FHA/VA-insured 29,683 21,660 19,762 19,275 19,337 19,607 19,612 19,586 19,630 19,589 13 Conventional 68,365 73,370 81,567 82,647 82,654 82,584 82,952 83,723 84,791 86,307 Mortgage transactions (during period) 14 Purchases 30,826 20,531 23,110 905 1,469 1,163 1,419 1,862 2,091 2,724 Mortgage commitments7 15 Contracted (during period) 32,987 25,415 23,435 3,557 1,771 1,118 1,626 2,573 2,513 2,842 16 Outstanding (end of period) 3,386 4,886 2,148 4,520 4,807 4,661 4,673 5,236 5,648 5,755 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 13,517 12,802 15,105 18,473 18,714 18,918 19,443 n.a. n.a. n.a. 18 FHA/VA 746 686 620 594 593 599 586 n.a. n.a. n.a. 19 Conventional 12,771 12,116 14,485 17,880 18,121' 18,320 18,857 19,535 n.a. n.a. Mortgage transactions (during period) 20 Purchases 103,474 76,845 44,077 5,088 6,373 5,861 5,141 n.a. n.a. n.a. 21 100,236 75,082 39,780 4,385 6,037 5,554 4,474 6,551' 5,180 6,360 Mortgage commitments9 22 Contracted (during period) 110,855 71,467 66,026 8,411 11,227 4,196 5,186 n.a. n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associmajor institutional lender groups; compiled by the Federal Home Loan Bank ation guaranteed, mortgage-backed, fully modified pass-through securities, as- Board in cooperation with the Federal Deposit Insurance Corporation. suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying 2. Includes all fees, commissions, discounts, and "points" paid (by the the prevailing ceiling rate. Monthly figures are averages of Friday figures from the borrower or the seller) to obtain a loan. Wall Street Journal. 3. Average effective interest rates on loans closed, assuming prepayment at the 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. Based on transactions on first day of subsequent month. Large securities swap programs, while the corresponding data for FNMA exclude swap monthly movements in average yields may reflect market adjustments to changes activity. in maximum permissable contract rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • November 1989 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1988 1989 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998866 11998877 11998888'' Q2 Q3 Q4' Q1 Q2" 1 All holders 2,618,324' 2,977,293' 3,268,285 3,120,536' 3,189,132' 3,268,285 3,328,824 3,391,259 2 1- to 4-family 1,719,673' 1,959,607' 2,189,475 2,070,829' 2,134,225' 2,189,475 2,230,006 2,281,317 3 Multifamily 247,831 273,954' 290,355 280,239' 284,675' 290,355 296,139 297,860 4 Commercial 555.039 654,863' 701,652 681,660' 683,207' 701,652 716,695 725,341 5 Farm 95,781 88,869' 86,803 87,808' 87,025' 86,803 85,984 86,741 6 Selected financial institutions 1,507,944' 1,704,560' 1,874,967 1,791,714' 1,833,800' 1,874,967 1,905,052 1,932,154 7 Commercial banks" 502,534 591,369' 669,160 629,617' 650,799' 669,160 688,662 715,049 8 1- to 4-family 235,814 276,270' 314,283 296,265' 307,041' 314,283 324,681 338,872 9 Multifamily 31,173 33,330' 34,131 34,225' 33,960' 34,131 34,172 34,954 10 Commercial 222,799 267,340' 305,242 283,942' 294,398' 305,242 313,941 324,878 11 Farm 12,748 14,429' 15,504 15,185' 15,400' 15,504 15,868 16,345 12 Savings institutions' 777,967' 860,467' 929,647 898,742' 914,280' 929,647 936,091 933,694 13 1- to 4-family 559,067' 602,408' 678,263 638,638' 665,294' 678,263 682,658 684,828 14 Multifamily 97,059 106,359 111,302 107,482' 109,287' 111,302 112,507 110,009 15 Commercial 121,236 150,943 139,416 151,870' 139,029' 139,416 140,255 138,201 16 605 17 Life insurance companies 193,842 212,375 232,639 220,870 225,627 232,639 234,910 236,160 18 1- to 4-family 12.827 13,226 15,284 14,172 14,917 15,284 12,690 12,745 19 Multifamily 20,952 22,524 23,562 23,021 23,139 23,562 24,636 25,103 20 Commercial 149,111 166,722 184,124 174,086 178,166 184,124 188,073 188,756 21 Farm 10,952 9,903 9,669 9,591 9,405 9,669 9,511 9,556 22 Finance companies4 33,601 40,349 43,521 42,485' 43,094' 43,521 45,389 47,251 23 Federal and related agencies 203,800 192,721 200,570 199,474 198,027 200,570 199,847 201,909 24 Government National Mortgage Association 889 444 26 42 64 26 26 24 2ih5 1- to 4-family 47 25 26 24 51 26 26 24 842 419 18 13 27 Farmers Home Administration5 48,421 43,051 42,018 42,767 41,836 42,018 41,780 40,711 28 1- to 4-family 21,625 18,169 18,347 18,248 18,268 18,347 18,347 18,391 29 Multifamily 7,608 8,044 8,513 8,213 8,349 8,513 8,615 8,778 30 Commercial 8,446 6,603 5,343 6,288 5,300 5,343 5,101 3,885 31 Farm 10,742 10,235 9,815 10,018 9,919 9,815 9,717 9,657 32 Federal Housing and Veterans Administration 5,047 5,574 5,973 5,673 5,666 5,973 6,075 6,424 33 1- to 4-family 2,386 2,557 2,672 2,564 2,432 2,672 2,550 2,827 34 Multifamily 2,661 3,017 3,301 3,109 3,234 3,301 3,525 3,597 35 Federal National Mortgage Association 97,895 96,649 103,013 102,368 102,453 103,013 101,991 103,309 36 1- to 4-family 90,718 89,666 95,833 95,404 95,417 95,833 94,727 95,714 37 Multifamily 7,177 6,983 7,180 6,964 7,036 7,180 7,264 7,595 38 Federal Land Banks 39,984 34,131 32,115 33,048 32,566 32,115 31,261 31,467 39 1- to 4-family 2.353 2,008 1,890 1,945 1,917 1,890 1,839 1,851 40 Farm 37,631 32,123 30,225 31,103 30,649 30,225 29,422 29,616 41 Federal Home Loan Mortgage Corporation 11,564 12,872 17,425 15,576 15,442 17,425 18,714 19,974 42 1- to 4-family 10,010 11,430 15,077 13,631 13,322 15,077 16,192 17,305 43 Multifamily 1.554 1,442 2,348 1,945 2,120 2,348 2,522 2,669 44 Mortgage pools or trusts6 565.428 718.297 810,887 754,045 782,802 810,887 839,684 861,827 45 Government National Mortgage Association 262.697 317,555 340,527 322,616 333,177 340,527 348,622 353,154 46 1- to 4-family 256,920 309,806 331,257 314,728 324,573 331,257 337,563 341,951 47 Multifamily 5,777 7,749 9,270 7,888 8,604 9,270 11.059 11,203 48 Federal Home Loan Mortgage Corporation 171,372 212,634 226,406 216,155 220,684 226,406 234,695 242,789 49 1- to 4-family 166,667 205,977 219,988 209,702 214,195 219,988 228,389 236,404 50 Multifamily 4,705 6,657 6,418 6,453 6,489 6,418 6,306 6,385 51 Federal National Mortgage Association 97,174 139,960 178,250 157,438 167,170 178,250 188,071 196,501 52 1- to 4-family 95,791 137,988 172,331 153,253 162,228 172,331 181,352 188,774 53 Multifamily 1,383 1,972 5,919 4,185 4,942 5,919 6,719 7,727 54 Farmers Home Administration5 348 245 104 106 106 104 % 85 55 1- to 4-family 142 121 26 23 27 26 24 23 56 57 Commercial 132 63 38 41 38 38 34 26 58 Farm 74 61 40 42 41 40 38 36 59 Individuals and others7 341,152' 361,715' 381,861' 375,303' 374,503' 381,861' 384,241 395,369 60 1- to 4-family 197,868' 201,704' 215,077' 212,017' 209,784' 215,077' 215,379 225,059 61 Multifamily 66,940 75,458'' 78,411' 76,736r 77,502' 78,411' 78,814 79,840 62 Commercial 53,315 63,192' 67,489' 65,433' 66,276' 67,489' 69,291 69,595 63 Farm 23,029 21,361' 20,884' 21,117' 20,941' 20,884' 20,757 20,875 1. Based on data from various institutional and governmental sources, with 5. FmHA-guaranteed securities sold to the Federal Financing Bank were some quarters estimated in part by the Federal Reserve. Multifamily debt refers reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4, to loans on structures of five or more units. because of accounting changes by the Farmers Home Administration. 2. Includes loans held by nondeposit trust companies but not bank trust 6. Outstanding principal balances of mortgage pools backing securities insured departments. or guaranteed by the agency indicated. Includes private pools which are not 3. Includes savings banks and savings and loan associations. Beginning 1987:1, shown as a separate line item. data reported by FSLIC-insured institutions include loans in process and other 7. Other holders include mortgage companies, real estate investment trusts, contra assets (credit balance accounts that must be subtracted from the corre- state and local credit agencies, state and local retirement funds, noninsured sponding gross asset categories to yield net asset levels). pension funds, credit unions, and other U.S. agencies. 4. Assumed to be entirely 1- to 4-family loans. 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 Nov. Dec. Jan. Feb. Mar. Apr. May Juner July Amounts outstanding (end of period) 1 Total 607,721 659,507 654,413 659,507 682,020 687,397 691,162 693,911 698,132 700,849 700,569 By major holder 7 Commercial banks 282,910 318,925 316,683 318,925 316,797 318,423 318,242 320,458 323,363 324,438 323,559 3 Finance companies 140,281 145,180 143,488 145,180 141,795 143,419 143,070 144,378 145,523 146,055 145,488 4 Credit unions 80,087 86,118 85,740 86,118 87,093 87,813 88,514 89,330 89,890 90,073 90,289 Retailers 40,975 43,498 42,910 43,498 40,986 41,052 41,300 41,301 41,323 41,649 41,798 6 Savings institutions 59,851 62,099 61,922 62,099 62,867 63,109 62,735 61,919 61,311 59,920 60,092 7 Gasoline companies 3,618 3,687 3,671 3,687 3,655 3,677 3,682 3,787 3,897 4,017 3,936 8 Pools of securitized assets n.a. n.a. n.a. n.a. 28,827 29,903 33,487 32,737 32,826 34,696 35,407 By major type of credit 9 265,976 281,174 279,926 281,174 286,382 288,767 288,850 228899,,665544 229900,,774411 229900,,119922 228888,,773300 10 Commercial banks 109,201 123,259 122,392 123,259 122,160 122,983 123,062 123,878 125,118 125,592 124,878 11 Credit unions 40,351 41,326 41,316 41,326 41,707 41,964 42,211 42,510 42,687 42,684 42,831 1? Finance companies 98,195 97,204 96,657 97,204 87,968 88,789 89,567 90,268 90,976 91,184 90,213 13 Savings institutions 18,228 19,385 19,561 19,385 19,506 19,464 19,231 18,866 18,566 18,032 17,972 14 Pools of securitized assets n.a. n.a. n.a. n.a. 15,042 15,568 14,779 14,132 13,395 12,700 12,835 15 Revolving 153,884 174,792 173,030 174,792 176,716 178,570 182,831 184,500 186,502 189,622 190,890 16 Commercial banks 99,119 117,572 116,593 117,572 111,133 111,706 112,553 114,130 115,407 115,561 115,954 17 Retailers 36,389 38,692 38,170 38,692 36,176 36,257 36,489 36,497 36,504 36,814 36,963 18 Gasoline companies 3,618 3,687 3,671 3,687 3,655 3,677 3,682 3,787 3,897 4,017 3,936 19 Savings institutions 10,367 10,151 9,923 10,151 10,479 10,722 10,860 10,918 11,008 10,951 11,176 70 Credit unions 4,391 4,691 4,673 4,691 4,785 4,866 4,947 5,035 5,109 5,187 n.a. 21 Pools of securitized assets n.a. n.a. n.a. n.a. 10,489 11,342 14,172 14,134 14,578 17,117 17,645 77 Mobile home 26,387 25,744 26,005 25,744 26,036 25,992 24,168 23,993 23,952 23,685 23,626 73 Commercial banks 9,220 8,974 9,224 8,974 8,974 8,974 8,844 8,836 8,878 8,847 8,826 74 Finance companies 7,762 7,186 7,197 7,186 7,376 7,308 5,687 5,659 5,684 5,674 5,624 25 Savings institutions 9,406 9,583 9,584 9,583 9,687 9,710 9,637 9,498 9,390 9,163 9,176 76 Other 161,475 177,798 175,452 177,798 192,886 194,068 195,314 195,763 196,936 197,349 197,324 71 Commercial banks 65,370 69,120 68,474 69,120 74,532 74,760 73,783 73,614 73,960 74,438 73,902 78 Finance companies 34,324 40,790 39,633 40,790 46,451 47,322 47,816 48,451 48,863 49,197 49,650 79 Credit unions 35,344 40,102 39,752 40,102 40,601 40,983 41,357 41,785 42,094 42,228 42,241 30 4,586 4,807 4,739 4,807 4,809 4,795 4,811 4,804 4,819 4,834 4,835 31 Savings institutions 21,850 22,981 22,854 22,981 23,196 23,214 23,006 22,638 22,347 21,773 21,769 32 Pools of securitized assets4 n.a. n.a. n.a. n.a. 3,296 2,993 4,536 4,471 4,853 4,879 4,927 Net change (during period) 33 Total 35,674 51,786 5,281 5,094 22,513 5,377 3,765 2,749 4,221 2,717 -280 By major holder 34 Commercial banks ^ 19,884 36,015 4,095 2,242 -2,128 1,626 -181 2,216 2,905 1,075 -879 35 Finance companies' 6,349 4,899 476 1,692 -3,385 1,624 -349 1,308 1,145 532 -567 36 Credit unions 3,853 6,031 402 378 975 720 701 816 560 183 215 37 Retailers 1,568 2,523 296 588 -2,512 66 248 1 22 326 149 38 Savings institutions 3,689 2,248 -4 177 768 242 -374 -816 -608 -1,391 172 39 Gasoline companies 332 69 17 16 -32 22 5 105 110 120 -81 40 Pools of securitized assets n.a. n.a. n.a. n.a. n.a. 1,076 3,584 -750 89 1,870 711 By major type of credit 41 Automobile 18,663 15,198 1,024 1,248 5,208 2,385 83 880044 11,,008877 --554499 --11,,446633 42 Commercial banks 7,919 14,058 1,453 867 -1,099 823 79 816 1,240 474 -714 43 Credit unions 1,916 975 23 10 381 257 247 299 177 -3 147 44 Finance companies 5,639 -991 -220 547 -9,236 821 778 701 708 208 -970 45 Savings institutions 3,188 1,157 -232 -176 121 -42 -233 -365 -300 -534 -61 46 Pools of securitized assets n.a. n.a. n.a. n.a. n.a. 526 -789 -647 -737 -695 135 47 Revolving 16,871 20,908 2,899 1,762 1,924 1,854 4,261 1,669 2,002 3,120 1,268 48 Commercial banks 12,188 18,453 2,413 979 -6,439 573 847 1,577 1,277 154 392 49 Retailers 1,866 2,303 251 522 -2,516 81 232 8 7 310 149 50 Gasoline companies 332 69 17 16 -32 22 5 105 110 120 -81 51 Savings institutions 1,771 -216 199 228 328 243 138 58 90 -57 225 52 Credit unions 715 300 20 18 94 81 81 88 74 78 n.a. 53 Pools of securitized assets n.a. n.a. n.a. n.a. n.a. 853 2,830 -38 444 2,539 528 54 Mobile home -968 -643 -28 -261 292 -44 -1,824 -175 -41 -267 -60 55 Commercial banks 192 -246 -1 -250 0 0 -130 -8 42 -31 -22 56 Finance companies -1,052 -576 3 -11 190 -68 -1,621 -28 25 -10 -50 57 Savings institutions -107 177 -30 -1 104 23 -73 -139 -108 -227 12 58 Other 1,108 16,323 1,386 2,346 15,088 1,182 1,246 449 1,173 413 -26 59 Commercial banks -415 3,750 230 646 5,412 228 -977 -169 346 478 -536 60 Finance companies 1,761 6,466 692 1,157 5,661 871 494 635 412 334 453 61 Credit unions 1,221 4,758 360 350 499 382 374 428 309 134 13 62 Retailers -297 221 45 68 2 -14 16 -7 15 15 0 63 Savings institutions -1,162 1,131 60 127 215 18 -208 -368 -291 -574 -5 64 Pools of securitized assets n.a. n.a. n.a. n.a. n.a. -303 1,543 -65 382 26 48 1. The Board's series cover most short- and intermediate-term credit extended 2. More detail for finance companies is available in the G. 20 statistical release. to individuals that is scheduled to be repaid (or has the option of repayment) in 3. Excludes 30-day charge credit held by travel and entertainment companies. two or more installments. 4. Outstanding balances of pools upon which securities have been issued; these These data also appear in the Board's G.19 (421) release. For address, see balances are no longer carried on the balance sheets of the loan originator. inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • November 1989 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1989 IItteemm 11998866 11998877 11998888 Jan. Feb. Mar. Apr. May June July INTEREST RATES Commercial banks2 1 48-month new car3 11.33 10.45 10.85 n.a. 11.76 n.a. n.a. 12.44 n.a. n.a. 2 24-month personal 14.82 14.22 14.68 n.a. 15.22 n.a. n.a. 15.65 n.a. n.a. 3 120-month mobile home3 13.99 13.38 13.54 n.a. 14.00 n.a. n.a. 14.35 n.a. n.a. 4 Credit card 18.26 17.92 17.78 n.a. 17.83 n.a. n.a. 18.11 n.a. n.a. Auto finance companies 5 New car 9.44 10.73 12.60 13.27 13.07 13.07 12.10 11.80 11.96 11.94 6 Used car 15.95 14.60 15.11 15.57 15.90 16.12 16.39 16.45 16.45 16.37 OTHER TERMS4 Maturity (months) V New car 50.0 53.5 56.2 56.2 55.7 55.4 53.4 52.7 53.0 52.9 8 Used car 42.6 45.2 46.7 47.8 47.4 47.1 47.8 46.6 46.5 46.4 Loan-to-value ratio 9 New car 91 93 94 94 92 92 91 91 91 91 10 Used car 97 98 98 97 98 97 97 97 97 97 Amount financed (dollars) 11 New car 10,665 11,203 11,663 11,956 11,819 11,867 11,886 11,973 12,065 12,108 12 Used car 6,555 7,420 7,824 8,006 8,022 7,958 7,855 7,908 7,921 7,988 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 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998844 11998855 11998866 11998877 1988 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors.. 750.8 846.3 837.5 689.0 741.4 659.8 780.3 723.9 710.4 767.8 763.7 742.6 By sector and instrument 2 U.S. government 198.8 223.6 215.0 144.9 157.5 103.1 168.2 227.7 89.2 188.6 124.4 214.4 3 Treasury securities 199.0 223.7 214.7 143.4 140.0 104.0 163.2 228.2 81.5 167.7 82.8 215.6 4 Agency issues and mortgages -.2 -.1 .4 1.5 17.4 -.9 5.0 -.5 7.7 20.9 41.6 -1.2 5 Private domestic nonfinancial sectors 552.0 622.7 622.5 544.0 584.0 556.6 612.2 496.2 621.2 579.3 639.3 528.2 6 Debt capital instruments 319.3 452.3 468.4 459.0 426.1 441.2 430.3 358.9 474.8 446.7 423.9 372.2 7 Tax-exempt obligations 50.4 136.4 30.8 34.5 33.1 32.7 33.5 22.8 30.6 41.4 37.5 19.7 8 Corporate bonds 46.1 73.8 121.3 99.9 97.2 100.7 81.6 101.4 117.9 90.3 79.1 82.1 9 Mortgages 222.8 242.2 316.3 324.5 295.8 307.8 315.3 234.6 326.3 315.0 307.3 270.3 10 Home mortgages 136.7 156.8 218.7 234.9 220.0 225.0 222.8 169.6 270.7 231.9 207.8 187.4 11 Multifamily residential 25.2 29.8 33.5 24.4 16.3 23.3 16.1 23.9 4.2 16.0 20.9 26.6 12 Commercial 62.2 62.2 73.6 71.6 61.6 64.3 78.3 47.3 52.7 69.4 77.1 61.5 13 Farm -1.2 -6.6 -9.5 -6.4 -2.1 -4.7 -1.9 -6.1 -1.4 -2.4 1.5 -5.2 14 Other debt instruments 232.7 170.3 154.1 85.1 157.9 115.4 181.8 137.3 146.4 132.5 215.4 156.1 15 Consumer credit 81.6 82.5 58.0 32.9 51.1 54.0 56.5 38.6 57.5 31.8 76.3 34.9 16 Bank loans n.e.c 67.1 38.6 65.0 10.8 47.5 21.7 75.2 34.7 72.4 10.7 72.1 38.3 17 Open market paper 21.7 14.6 -9.3 2.3 11.6 1.0 3.9 -3.8 4.0 11.1 35.1 34.4 18 Other 62.2 34.6 40.5 39.1 47.7 38.7 46.2 67.8 12.5 78.9 31.9 48.4 19 By borrowing sector 552.0 622.7 622.5 544.0 584.0 556.6 612.2 496.2 621.2 579.3 639.3 528.2 20 State and local governments 27.4 91.8 44.3 34.0 32.0 34.8 32.9 17.5 27.6 43.5 39.4 26.0 21 Households 231.5 283.6 289.2 267.8 276.5 287.3 277.8 212.6 330.6 282.9 279.8 251.7 22 Nonfinancial business 293.1 247.3 288.9 242.2 275.5 234.5 301.5 266.0 262.9 252.9 320.1 250.5 23 Farm -.4 -14.5 -16.3 -10.6 -4.0 -9.4 3.3 -15.7 -3.4 -2.6 5.5 -2.7 24 Nonfarm noncorporate 123.2 129.3 103.2 107.9 85.3 97.4 116.0 86.3 72.3 96.0 86.7 78.5 25 Corporate 170.3 132.4 202.0 144.9 194.2 146.6 182.1 195.5 194.0 159.5 227.8 174.6 26 Foreign net borrowing in United States 8.4 1.2 9.6 4.3 5.9 12.3 13.9 -1.0 5.2 4.4 15.0 -7.9 27 Bonds 3.8 3.8 3.0 6.8 6.7 6.7 21.6 16.8 -2.7 6.5 6.3 9.5 28 Bank loans n.e.c -6.6 -2.8 -1.0 -3.6 -1.8 -3.7 -6.1 .7 -3.5 2.9 -7.4 1.5 29 Open market paper 6.2 6.2 11.5 2.1 9.6 21.6 -2.5 1.5 6.4 10.7 20.0 11.6 30 U.S. government loans 5.0 -5.9 -3.9 -1.0 -8.6 -12.3 .8 -19.9 5.1 -15.8 -3.9 -30.4 31 Total domestic plus foreign 759.2 847.5 847.1 693.3 747.3 672.0 794.2 722.9 715.6 772.2 778.6 734.7 Financial sectors 32 Total net borrowing by financial sectors ... 148.7 198.3 307.0 303.3 254.9 306.4 250.2 193.3 263.3 227.2 335.7 358.1 By instrument 33 U.S. government related 74.9 101.5 187.9 185.8 137.5 185.5 167.5 120.3 101.8 150.6 177.2 205.7 34 Sponsored credit agency securities 30.4 20.6 15.2 30.2 44.9 32.0 71.6 56.8 9.4 42.8 70.5 81.7 35 Mortgage pool securities 44.4 79.9 173.1 156.4 92.6 153.5 95.9 63.4 92.4 107.8 106.7 124.0 36 Loans from U.S. government 1.1 -.4 -.7 37 Private financial sectors 73.8 96.7 119.1 117.5 117.4 120.8 82.7 73.1 161.5 76.6 158.5 152.4 38 Corporate bonds 33.0 47.9 70.9 67.2 50.7 77.7 42.4 70.1 60.5 32.5 39.7 31.0 39 Mortgages .4 .1 .1 .4 -.1 .2 .8 -.1 * * -.2 .1 40 Bank loans n.e.c .7 2.6 4.0 -3.3 -6.6 6.3 -10.7 -26.8 8.7 -8.6 .6 -4.6 41 Open market paper 24.1 32.0 24.2 28.8 53.6 14.3 5.4 24.6 82.2 26.1 81.7 61.6 42 Loans from Federal Home Loan Banks 15.7 14.2 19.8 24.4 19.7 22.2 44.9 5.4 10.1 26.6 36.8 64.4 By sector 43 Total 148.7 198.3 307.0 303.3 254.9 306.4 250.2 193.3 263.3 227.2 335.7 358.1 44 Sponsored credit agencies 30.4 21.7 14.9 29.5 44.9 32.0 71.6 56.8 9.4 42.8 70.5 81.7 45 Mortgage pools 44.4 79.9 173.1 156.4 92.6 153.5 95.9 63.4 92.4 107.8 106.7 124.0 46 Private financial sectors 73.8 96.7 119.1 117.5 117.4 120.8 82.7 73.1 161.5 76.6 158.5 152.4 47 Commercial banks 7.3 -4.9 -3.6 7.1 -3.9 -13.1 15.0 -22.4 6.2 -8.3 8.9 1.8 48 Bank affiliates 15.6 14.5 4.6 2.9 1.4 11.3 -22.6 -8.5 11.4 7.6 -4.9 8.8 49 Savings and loan associations 22.7 22.3 29.8 34.9 37.8 43.4 48.7 8.6 17.1 54.4 71.0 72.7 50 Finance companies 18.2 52.7 48.4 32.7 47.8 34.0 33.4 51.4 93.7 1.2 45.1 53.6 51 REITs .8 .5 1.0 .8 1.7 2.5 2.2 1.0 1.7 -1.4 5.8 .8 52 CMO Issuers 9.3 11.5 39.0 39.1 32.5 42.7 6.0 43.0 31.5 23.1 32.5 14.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • November 1989 1.57—Continued 1987 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998844 11998855 11998866 11998877 11998888 Q3 Q4 Q1 Q2 Q3 Q4 Q1 All sectors 53 Total net borrowing 907.9 1,045.7 1,154.1 996.6 1,002.2 978.4 1,044.4 916.2 978.9 999.4 1,114.4 1,092.8 54 U.S. government securities 273.8 324.2 403.4 331.5 294.9 288.6 335.7 347.9 191.0 339.2 301.6 420.1 55 State and local obligations 50.4 136.4 30.8 34:5 33.1 32.7 33.5 22.8 30.6 41.4 37.5 19.7 56 Corporate and foreign bonds 83.0 125.4 195.2 174.0 154.6 185.1 145.6 188.2 175.8 129.4 125.1 122.7 57 Mortgages 223.1 242.2 316.4 324.9 295.7 308.0 316.1 234.5 326.3 315.0 307.1 270.4 58 Consumer credit 81.6 82.5 58.0 32.9 51.1 54.0 56.5 38.6 57.5 31.8 76.3 34.9 59 Bank loans n.e.c 61.1 38.3 67.9 3.8 39.1 24.3 58.4 8.6 77.6 5.0 65.3 35.1 60 Open market paper 52.0 52.8 26.4 33.2 74.9 36.9 6.7 22.3 92.5 48.0 136.8 107.6 61 Other loans 82.9 44.0 56.1 61.8 58.8 48.7 91.9 53.3 27.7 89.7 64.7 82.4 62 MEMO: U.S. government, cash balance 6.3 14.4 * -7.9 10.4 -19.6 -54.7 60.9 3.3 16.2 -38.8 -4.3 Totals net of changes in U.S. government cash balances 63 Net borrowing by domestic nonfinancial 744.5 831.9 837.5 696.9 731.1 679.4 835.0 663.0 707.1 751.7 802.5 747.0 64 Net borrowing by U.S. government 192.5 209.3 215.0 152.8 147.1 122.7 222.8 166.8 86.0 172.4 163.2 218.7 External corporate equity funds raised in United States 65 Total net share issues -36.0 20.1 93.9 13.5 -115.0 -47.1 -82.7 -75.6 -131.1 -84.1 -169.1 -143.1 66 Mutual funds 29.3 84.4 161.8 72.3 -.4 13.8 -9.1 5.0 -8.0 0.3 1.1 19.1 67 All other -65.3 -64.3 -68.0 -58.8 -114.5 -60.9 -73.6 -80.5 -123.1 -84.4 -170.2 -162.2 68 Nonfinancial corporations -74.5 -81.5 -80.7 -76.5 -130.5 -78.0 -88.0 -95.0 -140.0 -92.0 -195.0 -180.0 69 Financial corporations 8.2 13.5 11.5 20.1 15.2 18.4 26.4 15.2 23.4 6.4 15.9 13.7 70 Foreign shares purchased in United States .9 3.7 1.3 -2.4 .7 -1.3 -12.0 -.7 -6.5 1.2 9.0 4.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates. 1987 1988 1989 Transaction category, or sector 11998844 11998855 11998866 11998877 11998888 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1 Total funds advanced in credit markets to domestic nonfinancial sectors 750.8 846.3 837.5 689.0 741.4 659.8 780.3 723.9 710.4 767.8 763.7 742.6 By public agencies and foreign 2 Total net advances 157.6 193.1 314.0 256.7 239.1 211.1 265.4 262.5 166.1 222.5 305.1 336.2 3 U.S. government securities 38.9 37.9 69.4 68.2 84.8 35.1 123.3 148.6 42.4 25.8 122.3 87.6 4 Residential mortgages 56.5 94.6 170.1 153.2 104.0 146.0 102.7 83.6 106.7 108.3 117.5 126.2 5 FHLB advances to savings and loans 15.7 14.2 19.8 24.4 19.7 22.2 44.9 5.4 10.1 26.6 36.8 64.4 6 Other loans and securities 46.6 46.3 54.6 10.9 30.5 7.8 -5.5 24.9 6.8 61.9 28.4 58.1 Total advanced, by sector 7 U.S. government 17.1 16.8 9.7 -11.9 -7.3 -24.1 -2.6 -8.8 -20.3 9.4 -9.5 7.3 8 Sponsored credit agencies 74.3 95.5 187.2 181.4 131.2 187.0 156.6 103.1 103.4 138.9 179.2 216.0 9 Monetary authorities 8.4 18.4 19.4 24.7 10.5 29.0 30.4 -5.5 4.1 17.1 26.5 -4.9 10 Foreign 57.9 62.3 97.8 62.5 104.7 19.1 81.0 173.7 78.9 57.2 108.9 117.8 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools.. 74.9 101.5 187.9 185.8 137.5 185.5 167.5 120.3 101.8 150.6 177.2 205.7 12 Foreign 8.4 1.2 9.6 4.3 5.9 12.3 13.9 -1.0 5.2 4.4 15.0 -7.9 Private domestic funds advanced 13 Total net advances 676.4 756.0 721.0 622.5 645.7 646.4 696.3 580.6 651.3 700.3 650.8 604.2 14 U.S. government securities 234.9 286.2 333.9 263.3 210.2 253.5 212.4 199.3 148.6 313.4 179.3 332.5 15 State and local obligations 50.4 136.4 30.8 34.5 33.1 32.7 33.5 22.8 30.6 41.4 37.5 19.7 16 Corporate and foreign bonds 35.1 40.8 84.1 86.5 81.0 83.7 102.9 115.7 90.2 65.1 53.0 54.6 17 Residential mortgages 105.3 91.8 82.0 106.1 132.2 102.3 136.2 109.9 168.2 139.7 111.1 87.9 18 Other mortgages and loans 266.3 214.9 210.0 156.5 209.0 196.4 256.3 138.3 223.8 167.3 306.6 173.8 19 LESS: Federal Home Loan Bank advances 15.7 14.2 19.8 24.4 19.7 22.2 44.9 5.4 10.1 26.6 36.8 64.4 Private financial intermediation 20 Credit market funds advanced by private financial institutions 581.0 569.8 747.0 566.6 587.6 643.7 553.8 658.1 593.3 473.2 626.0 586.9 21 Commercial banking 168.9 186.3 194.8 136.7 156.0 151.4 253.1 56.8 213.8 141.3 212.2 96.8 22 Savings institutions 150.2 83.0 106.2 141.7 121.1 191.5 155.6 85.3 92.9 186.3 119.9 80.6 23 Insurance and pension funds 121.8 148.9 181.9 211.9 222.2 247.5 154.3 279.3 228.9 173.9 206.8 259.1 24 Other finance 140.1 151.6 264.2 76.3 88.3 53.3 -9.2 236.7 57.8 -28.4 87.2 150.3 25 Sources of funds 581.0 569.8 747.0 566.6 587.6 643.7 553.8 658.1 593.3 473.2 626.0 586.9 26 Private domestic deposits and RPs 321.9 210.6 264.7 145.6 198.4 193.9 265.6 283.6 135.1 167.3 207.5 127.3 27 Credit market borrowing 73.8 96.7 119.1 117.5 117.4 120.8 82.7 73.1 161.5 76.6 158.5 152.4 28 Other sources 185.3 262.5 363.2 303.5 271.8 329.0 205.5 301.3 296.7 229.2 260.0 307.2 29 Foreign funds 8.8 19.7 12.9 43.7 9.2 99.5 25.2 -80.1 106.6 -50.4 60.7 -36.3 30 Treasury balances 4.0 10.3 1.7 -5.8 7.3 6.1 -36.1 53.3 -17.5 8.7 -15.2 -8.4 31 Insurance and pension reserves 124.0 131.9 144.3 176.1 219.9 196.1 120.3 265.2 240.0 149.9 224.3 263.6 32 Other, net 48.5 100.7 204.4 89.6 35.4 27.2 96.0 62.9 -32.4 121.0 -9.9 88.3 Private domestic nonfinancial investors 33 Direct lending in credit markets 169.2 282.9 93.1 173.3 175.5 123.6 225.1 -4.4 219.5 303.7 183.3 169.7 34 U.S. government securities 115.4 175.7 59.9 104.4 146.5 70.3 117.8 114.4 87.3 247.0 137.2 194.6 35 State and local obligations 26.5 39.6 -13.6 46.1 20.0 42.4 56.0 -.5 18.3 27.9 34.4 7.7 36 Corporate and foreign bonds -.8 2.4 32.6 5.3 -12.7 28.3 42.1 -39.0 36.6 -29.2 -19.4 -.2 37 Open market paper 4.0 45.6 -3.6 4.3 14.9 -29.7 -9.5 -71.5 76.1 54.0 1.0 -2.0 38 Other 24.2 19.6 17.9 13.3 6.8 12.2 18.7 -7.8 1.2 3.9 30.1 -30.3 39 Deposits and currency 325.4 220.9 285.0 161.8 205.9 229.3 316.3 278.6 136.3 194.1 214.4 138.1 40 Currency 8.6 12.4 14.4 19.0 14.7 17.3 36.8 8.2 11.9 28.6 10.2 9.8 41 Checkable deposits 28.0 40.9 93.2 -2.1 12.2 35.4 14.3 4.5 18.5 -23.8 49.6 -59.6 42 Small time and savings accounts 150.7 138.5 120.6 76.0 120.6 80.2 124.1 189.1 152.4 70.5 70.4 50.7 43 Money market fund shares 49.0 8.9 41.5 28.2 23.8 32.7 63.3 59.1 -34.8 3.0 67.9 59.5 44 Large time deposits 84.3 7.7 -11.4 26.7 32.3 -1.0 89.4 11.7 -15.7 122.0 11.2 55.9 45 Security RPs 10.0 14.6 20.8 16.9 9.5 46.6 -25.6 19.3 14.7 -4.4 8.2 20.7 46 Deposits in foreign countries -5.1 -2.1 5.9 -2.8 -7.3 18.1 13.9 -13.3 -10.7 -1.8 -3.3 1.0 47 Total of credit market instruments, deposits, and currency 494.6 503.7 378.1 335.1 381.4 352.9 541.5 274.2 355.8 497.8 397.7 307.8 48 Public holdings as percent of total 20.7 22.7 37.0 37.0 31.9 31.4 33.4 36.3 23.2 28.8 39.1 45.7 49 Private financial intermediation (in percent) 85.8 75.3 103.6 91.0 90.9 99.5 79.5 113.3 91.0 67.5 96.1 97.1 50 Total foreign funds 66.7 82.0 110.7 106.2 113.9 118.7 106.2 93.6 185.5 6.8 169.7 81.5 MEMO: Corporate equities not included above 51 Total net issues -36.0 20.1 93.9 13.5 -115.0 -47.1 -82.7 -75.6 -131.1 -84.1 -169.1 -143.1 52 Mutual fund shares 29.3 84.4 161.8 72.3 -.4 13.8 -9.1 5.0 -8.0 .3 1.1 19.1 53 Other equities -65.3 -64.3 -68.0 -58.8 -114.5 -60.9 -73.6 -80.5 -123.1 -84.4 -170.2 -162.2 54 Acquisitions by financial institutions 15.8 45.6 48.5 22.6 4.8 5.2 -16.5 -35.7 -6.8 22.4 39.1 4.1 55 Other net purchases -51.8 -25.5 45.4 -9.1 -119.7 -52.4 -66.2 -39.9 -124.3 -106.5 -208.2 -147.2 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also sum of lines 28 and 47 less lines 40 and 46. 48. Line 2/line 1. 18. Includes farm and commercial mortgages. 49. Line 20/line 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics • November 1989 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1987 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998833 11998844 11998855 11998866 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 5,204.3 5,953.7 6,797.0 7,638.4 8,099.4 8,330.0 8,471.0 8,658.1 8,828.8 9,049.7 9,209.4 By sector and instrument 2 U.S. government 1,177.9 1,376.8 1,600.4 1,815.4 1,897.8 1,960.3 2,003.2 2,022.3 2,063.9 2,117.8 2,155.7 3 Treasury securities 1,174.4 1,373.4 1,597.1 1,811.7 1,893.8 1,955.2 1,998.1 2,015.3 2,051.7 2,095.2 2,133.4 4 Agency issues and mortgages 3.6 3.4 3.3 3.6 3.9 5.2 5.0 7.0 12.2 22.6 22.3 5 Private domestic nonfinancial sectors 4,026.4 4,577.0 5,196.6 5,823.0 6,201.7 6,369.7 6,467.8 6,635.8 6,764.9 6,931.9 7,053.7 6 Debt capital instruments 2,717.8 3,040.0 3,488.4 3,967.6 4,327.4 4,438.5 4,512.2 4,635.3 4,737.8 4,848.3 4,933.0 7 Tax-exempt obligations 471.7 522.1 658.4 689.2 715.5 723.7 727.5 734.8 747.6 756.8 764.9 8 Corporate bonds 423.0 469.2 542.9 664.2 743.7 764.1 789.5 819.0 841.5 861.3 881.8 9 Mortgages 1,823.1 2,048.8 2,287.1 2,614.2 2,868.2 2,950.7 2,995.3 3,081.6 3,148.6 3,230.2 3,286.3 10 Home mortgages 1,200.2 1,336.2 1,490.2 1,720.8 1,884.2 1,943.1 1,972.0 2,043.3 2,105.0 2,160.9 2,195.6 11 Multifamily residential 158.8 183.6 213.0 246.2 265.0 270.0 274.5 276.3 279.5 285.9 291.4 12 Commercial 350.4 416.5 478.1 551.4 629.1 648.7 660.8 674.1 677.1 696.6 713.1 13 Farm 113.7 112.4 105.9 95.8 90.0 88.9 88.0 87.8 87.0 86.8 86.2 14 Other debt instruments 1,308.6 1,536.9 1,708.2 1,855.5 1,874.3 1,931.1 1,955.6 2,000.5 2,027.1 2,083.6 2,120.8 15 Consumer credit 437.7 519.3 601.8 659.8 674.8 692.7 688.9 705.8 721.2 743.7 746.6 16 Bank loans n.e.c 490.2 552.9 592.6 654.2 637.6 654.4 665.6 685.7 686.5 701.9 713.5 17 Open market paper 36.8 58.5 72.2 62.9 68.1 73.8 73.5 77.8 80.3 85.4 95.5 18 Other 344.0 406.2 441.6 478.6 493.7 510.3 527.5 531.2 539.1 552.7 565.1 19 By borrowing sector 4,026.4 4,577.0 5,196.6 5,823.0 6,201.7 6,369.7 6,467.8 6,635.8 6,764.9 6,931.9 7,053.7 20 State and local governments 357.7 385.1 476.9 520.2 546.2 554.2 556.7 563.2 576.0 585.6 595.2 21 Households 1,811.6 2,038.2 2,314.5 2,614.6 2,787.3 2,864.3 2,892.1 2,982.3 3,058.2 3,137.4 3,183.8 22 Nonfinancial business 1,857.1 2,153.7 2,405.2 2,688.3 2,868.2 2,951.2 3,019.0 3,090.2 3,130.7 3,208.9 3,274.6 23 Farm 188.4 187.9 173.4 156.6 148.5 145.5 141.3 143.9 143.6 141.1 140.1 24 Nonfarm noncorporate 645.8 769.0 898.3 1,001.6 1,076.4 1,109.4 1,131.7 1,148.9 1,167.3 1,193.3 1,213.6 25 Corporate 1,022.9 1,196.8 1,333.5 1,530.1 1,643.3 1,696.3 1,746.0 1,797.4 1,819.9 1,874.5 1,920.9 26 Foreign credit market debt held in United States 227.3 235.1 234.7 236.2 237.0 242.3 243.2 244.4 244.6 248.2 248.4 27 Bonds 64.2 68.0 71.8 74.8 75.9 81.6 85.4 85.2 86.5 88.3 90.3 28 Bank loans n.e.c 37.4 30.8 27.9 26.9 24.2 23.3 22.8 22.4 22.7 21.5 21.1 29 Open market paper 21.5 27.7 33.9 37.4 40.6 41.2 42.5 44.0 46.3 50.9 55.5 30 U.S. government loans 104.1 108.6 101.1 97.1 96.3 96.1 92.4 92.7 89.1 87.5 81.5 31 Total domestic plus foreign 5,431.6 6,188.8 7,031.7 7,874.7 8,336.4 8,572.3 8,714.1 8,902.4 9,073.4 9,297.9 9,457.9 Financial sectors 32 Total credit market debt owed by financial sectors 857.9 1,006.2 1,206.2 1,544.7 1,783.8 1,862.8 1,897.7 1,969.7 2,027.3 2,117.7 2,196.8 By instrument 33 U.S. government related 456.7 531.2 632.7 844.2 981.6 1,026.5 1,050.6 1,076.9 1,116.3 1,164.0 1,209.0 34 Sponsored credit agency securities 206.8 237.2 257.8 273.0 283.7 303.2 313.5 317.9 328.5 348.1 364.3 35 Mortgage pool securities 244.9 289.0 368.9 565.4 692.9 718.3 732.1 754.0 782.8 810.9 839.7 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 401.2 475.0 573.4 700.5 802.1 836.3 847.1 892.8 911.1 953.8 987.8 38 Corporate bonds 115.8 148.9 197.5 268.4 324.2 335.6 352.2 367.1 375.6 386.3 393.1 39 Mortgages 2.1 2.5 2.7 2.7 2.9 3.1 3.1 3.1 3.1 3.0 3.1 40 Bank loans n.e.c 28.9 29.5 32.1 36.1 42.2 40.8 31.7 34.3 32.9 34.2 30.6 41 Open market paper 195.5 219.5 252.4 284.6 312.7 323.8 330.6 353.4 358.0 377.4 397.4 42 Loans from Federal Home Loan Banks... 59.0 74.6 88.8 108.6 120.1 133.1 129.5 134.8 141.6 152.8 163.8 43 Total, by sector 857.9 1,006.2 1,206.2 1,544.7 1,783.8 1,862.8 1,897.7 1,969.7 2,027.3 2,117.7 2,196.8 44 Sponsored credit agencies 211.8 242.2 263.9 278.7 288.7 308.2 318.5 322.9 333.5 353.1 369.3 45 Mortgage pools 244.9 289.0 368.9 565.4 692.9 718.3 732.1 754.0 782.8 810.9 839.7 46 Private financial sectors 401.2 475.0 573.4 700.5 802.1 836.3 847.1 892.8 911.1 953.8 987.8 47 Commercial banks 76.8 84.1 79.2 75.6 78.6 82.7 76.4 77.2 76.6 78.8 78.9 48 Bank affiliates 71.0 86.6 101.2 101.3 109.5 104.2 103.5 106.6 106.4 105.6 109.3 49 Savings and loan associations 73.9 93.2 115.5 145.1 165.0 180.0 176.1 186.8 197.8 218.7 230.7 50 Finance companies 171.7 193.2 246.9 308.1 340.7 359.1 369.6 392.5 395.1 406.0 420.4 51 REITs 3.5 4.3 5.6 6.5 6.8 7.3 7.6 8.0 7.6 9.1 9.3 52 CMO issuers 4.2 13.5 25.0 64.0 101.6 103.1 113.9 121.8 127.5 135.7 139.3 All sectors 53 Total credit market debt 6,289.5 7,195.0 8,237.9 9,419.4 10,120.2 10,435.1 10,611.8 10,872.1 11,100.8 11,415.6 11,654.7 54 U.S. government securities 1,629.4 1,902.8 2,227.0 2,653.8 2,874.4 2,981.8 3,048.8 3,094.2 3,175.2 3,276.7 3,359.7 55 State and local obligations 471.7 522.1 658.4 689.2 715.5 723.7 727.5 734.8 747.6 756.8 764.9 56 Corporate and foreign bonds 603.0 686.0 812.1 1,007.4 1,143.9 1,181.4 1,227.1 1,271.3 1,303.6 1,336.0 1,365.2 57 Mortgages 1,825.4 2,051.4 2,289.8 2,617.0 2,871.1 2,953.8 2,998.4 3,084.7 3,151.7 3,233.3 3,289.3 58 Consumer credit 437.7 519.3 601.8 659.8 674.8 692.7 688.9 705.8 721.2 743.7 746.6 59 Bank loans n.e.c 556.5 613.2 652.6 717.2 704.0 718.4 720.1 742.4 742.1 757.5 765.2 60 Open market paper 253.8 305.7 358.5 384.9 421.4 438.8 446.7 475.3 484.6 513.6 548.4 61 Other loans 512.1 594.4 637.6 690.1 715.1 744.5 754.4 763.7 774.7 797.9 815.4 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 1989 Transaction category, or sector 11998833 11998844 11998855 11998866 Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Total funds advanced in credit markets to domestic nonfinancial sectors 5,204.3 5,953.7 6,797.0 7,638.4 8,099.4 8,330.0 8,471.0 8,658.1 8,828.8 9,049.7 9,209.4 By public agencies and foreign 2 Total held 1,101.7 1,259.2 1,457.5 1,791.2 1,965.1 2,036.2 2,092.2 2,138.8 2,188.3 2,269.9 2,343.9 3 U.S. government securities 339.0 377.9 421.8 491.2 525.6 559.4 592.7 607.1 610.3 644.2 662.1 4 Residential mortgages 367.0 423.5 518.2 712.3 834.6 862.0 880.6 906.1 934.9 966.0 995.1 5 FHLB advances to savings and loans 59.0 74.6 88.8 108.6 120.1 133.1 129.5 134.8 141.6 152.8 163.8 6 Other loans and securities 336.8 383.1 428.7 479.0 484.8 481.8 489.4 490.8 501.6 506.9 522.9 7 Total held, by type of lender 1,101.7 1,259.2 1,457.5 1,791.2 1,965.1 2,036.2 2,092.2 2,138.8 2,188.3 2,269.9 2,343.9 8 U.S. government 212.8 229.7 245.7 252.3 235.2 233.0 231.4 227.0 224.3 220.3 222.8 9 Sponsored credit agencies and mortgage pools . 482.0 556.3 657.8 867.8 1,003.7 1,044.9 1,064.0 1,091.6 1,128.9 1,176.1 1,223.0 10 Monetary authority 159.2 167.6 186.0 205.5 219.6 230.1 224.9 229.7 230.8 240.6 235.4 11 Foreign 247.7 305.6 367.9 465.7 506.7 528.2 572.0 590.5 604.4 632.9 662.7 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools . 456.7 531.2 632.7 844.2 981.6 1,026.5 1,050.6 1,076.9 1,116.3 1,164.0 1,209.0 13 Foreign 227.3 235.1 234.7 236.2 237.0 242.3 243.2 244.4 244.6 248.2 248.4 Private domestic holdings 14 Total private holdings 4,786.6 5,460.8 6,207.0 6,927.6 7,353.0 7,562.5 7,672.5 7,840.5 8,001.3 8,192.0 8,323.0 15 U.S. government securities 1,290.4 1,524.9 1,805.2 2,162.6 2,348.8 2,422.4 2,456.0 2,487.0 2,564.9 2,632.6 2,697.6 16 State and local obligations 471.7 522.1 658.4 689.2 715.5 723.7 727.5 734.8 747.6 756.8 764.9 17 Corporate and foreign bonds 441.7 476.8 517.6 601.7 663.4 688.1 716.3 740.6 756.9 769.1 782.1 18 Residential mortgages 992.2 1,096.5 1,185.1 1,254.7 1,314.6 1,351.1 1,366.0 1,413.6 1,449.6 1,480.8 1,491.9 19 Other mortgages and loans 1,649.6 1,915.2 22,,112299..55 2,328.1 2,430.7 2,510.2 2,536.2 2,599.2 2,623.8 2,705.4 2,750.2 20 LESS: Federal Home Loan Bank advances 59.0 74.6 8888..88 108.6 120.1 133.1 129.5 134.8 141.6 152.8 163.8 Private financial intermediation 21 Credit market claims held by private financial institutions 4,111.2 4,691.0 5,264.4 6,010.1 6,434.5 6,594.8 6,728.4 6,895.8 6,999.4 7,169.6 7,294.3 22 Commercial banking 1,622.1 1,791.1 1,978.5 2,173.2 2,249.0 2,309.9 2,322.7 2,378.2 2,417.3 2,465.9 2,490.1 23 Savings institutions 944.0 1,092.8 1,178.4 1,283.6 1,397.3 1,436.2 1,441.7 1,484.6 1,513.0 1,544.4 1,551.9 24 Insurance and pension funds 1,093.5 1,215.3 1,364.2 1,546.0 1,716.0 1,758.0 1,823.3 1,879.5 1,925.0 1,980.5 2,040.1 25 Other finance 451.6 591.7 743.4 1,007.1 1,072.2 1,090.7 1,140.7 1,153.5 1,144.0 1,179.0 1,212.2 26 Sources of funds 4,111.2 4,691.0 5,264.4 6,010.1 6,434.5 6,594.8 6,728.4 6,895.8 6,999.4 7,169.6 7,294.3 27 Private domestic deposits and RPs 2,389.8 2,711.5 2,922.1 3,182.6 3,226.9 3,320.6 3,376.5 3,409.8 3,438.1 3,519.0 3,530.3 28 Credit market debt 401.2 475.0 573.4 700.5 802.1 836.3 847.1 892.8 911.1 953.8 987.8 29 Other sources 1,320.2 1,504.5 1,768.9 2,127.0 2,405.4 2,437.9 2,504.8 2,593.2 2,650.1 2,696.9 2,776.1 30 Foreign funds -23.0 -14.1 5.6 18.6 52.7 62.2 45.9 62.3 51.9 71.5 69.3 31 Treasury balances 11.5 15.5 25.8 27.5 33.0 21.6 23.5 32.6 34.2 29.0 14.1 32 Insurance and pension reserves 1,036.1 1,160.8 1,289.5 1,427.9 1,556.7 1,597.2 1,662.4 1,718.6 1,758.0 1,804.6 1,862.0 33 Other, net 295.6 342.2 448.0 653.0 763.1 756.8 773.1 779.7 806.0 791.8 830.7 Private domestic nonfinancial investors 34 Credit market claims 1,076.6 1,244.8 1,516.0 1,618.1 1,720.6 1,804.0 1,791.2 1,837.5 1,913.0 1,976.1 2,016.5 35 U.S. government securities 548.6 663.6 830.7 915.1 971.0 1,012.3 1,022.4 1,036.2 1,102.4 1,155.4 1,183.9 36 Tax-exempt obligations 170.0 196.3 235.9 222.3 255.9 268.3 265.1 271.9 281.2 288.4 292.1 37 Corporate and foreign bonds 45.4 44.5 47.6 80.1 80.6 84.8 82.7 88.9 83.5 72.1 80.5 38 Open market paper 68.4 72.4 118.0 114.3 114.9 136.3 119.1 139.4 143.9 151.2 156.8 39 Other 244.3 268.0 283.8 286.2 298.2 302.3 301.9 301.1 302.0 309.1 303.2 40 Deposits and currency 2,566.4 2,891.7 3,112.5 3,393.4 3,437.0 3,547.6 3,598.3 3,637.6 3,666.3 3,753.4 3,763.4 41 Currency 150.9 159.6 171.9 186.3 192.4 205.4 204.0 209.9 213.4 220.1 219.1 42 Checkable deposits 350.9 378.8 419.7 512.9 487.5 510.4 491.0 506.0 490.7 522.6 486.7 43 Small time and savings accounts 1,542.9 1,693.4 1,831.9 1,948.3 1,983.4 2,017.1 2,070.7 2,105.9 2,117.0 2,137.7 2,154.3 44 Money market fund shares 169.5 218.5 227.3 268.9 286.4 297.1 322.1 310.4 308.6 320.9 347.0 45 Large time deposits 247.7 332.1 339.8 328.4 326.0 355.1 350.0 343.1 376.9 387.4 390.0 46 Security RPs 78.8 88.7 103.3 124.1 143.6 141.0 142.6 144.4 144.9 150.5 152.3 47 Deposits in foreign countries 25.7 20.6 18.5 24.5 17.8 21.6 17.8 17.8 14.7 14.4 14.0 48 Total of credit market instruments, deposits, and currency 3,643.0 4,136.5 4,628.5 5,011.4 5,157.6 5,351.6 5,389.5 5,475.0 5,579.3 5,729.6 5,780.0 49 Public holdings as percent of total 20.2 20.3 20.7 22.7 23.5 23.7 24.0 24.0 24.1 24.4 24.7 50 Private financial intermediation (in percent) 85.8 85.9 84.8 86.7 87.5 87.2 87.6 87.9 87.4 87.5 87.6 51 Total foreign funds 224.7 291.5 373.5 484.2 559.4 590.5 617.8 652.8 656.3 704.3 731.9 MEMO: Corporate equities not included above 52 Total market value 2,134.0 2,158.2 2,824.5 3,362.0 4,316.0 3,318.5 3,500.2 3,619.7 3,572.5 3,600.9 3,732.4 53 Mutual fund shares 112.1 136.7 240.2 413.5 525.1 460.1 479.2 486.8 478.1 478.3 486.3 54 Other equities 2,021.9 2,021.5 2,584.3 2,948.5 3,790.9 2,858.3 3,021.0 3,133.0 3,094.4 3,122.6 3,246.0 55 Holdings by financial institutions 612.0 615.6 800.0 972.2 1,306.7 1,011.1 1,079.4 1,131.1 1,126.9 1,156.3 1,226.2 56 Other holdings 1,522.0 1,542.6 2,024.5 2,389.8 3,009.3 2,307.4 2,420.8 2,488.7 2,445.6 2,444.6 2,506.2 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/line 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 • November 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 Dec. Jan. Feb. Mar. Apr. Mayr Juner July' Aug. 1 Industrial production 125.1 129.8 137.2 140.4 140.8 140.5 140.7 140.9 141.6 141.9 142.0 142.4 Market groupings 2 Products, total 133.3 81.1 145.9 149.4 150.1 150.0 150.5 149.6 151.7 152.3 152.0 152.3 3 Final, total 132.5 136.8 144.3 147.7 148.2 148.6 148.9 148.2 150.4 150.9 150.4 150.8 4 Consumer goods 124.0 127.7 133.9 138.2 138.5 138.7 138.4 137.5 139.2 139.6 138.9 139.0 5 Equipment 143.6 148.8 158.2 160.4 161.1 161.6 162.8 162.2 165.4 165.9 165.7 166.4 6 Intermediate 136.2 143.5 151.5 155.0 156.6 155.1 156.1 154.7 156.3 157.0 157.3 157.6 7 Materials 113.8 118.2 125.3 128.3 128.1 127.4 127.3 128.9 127.9 127.7 128.4 128.9 Industry groupings 8 Manufacturing 129.1 134.6 142.8 146.3 147.2 146.8 147.0 148.0 148.1 148.6 148.6 148.9 Capacity utilization (percent)2 9 Manufacturing 79.7 81.1 83.5 84.4 84.7 84.3 84.1 84.5 84.3 84.3 84.1 84.0 10 Industrial materials industries 78.6 80.5 83.7 84.9 84.6 84.0 83.7 84.2 83.8 83.5 83.8 84.0 11 Construction contracts (1982 = 100)3 158.0 164.0 161.0 163.0 155.0 148.0 150.0 163.0 159.0 157.0 163.0 160.0 12 Nonagricultural employment, total4 120.7 124.1 128.6 129.9 130.3 130.6 130.8 131.1 131.3 131.7 131.9 132.1 13 Goods-producing, total 100.9 101.8 105.0 104.8 105.3 105.3 105.4 105.5 105.5 105.4 105.5 105.7 14 Manufacturing, total 96.3 96.8 99.2 99.5 99.8 99.8 100.0 99.9 99.9 99.8 99.9 99.9 15 Manufacturing, production-worker.... 91.1 91.9 94.3 94.7 94.9 95.0 95.1 95.0 95.0 94.8 94.9 94.9 16 Service-producing 129.0 133.4 138.5 140.4 140.8 141.2 141.5 141.8 142.2 142.7 143.0 143.1 1/ Personal income, total 219.4 235.0 252.8 261.7 265.8 268.7 271.3 272.9 273.5 274.8 276.6 277.8 18 Wages and salary disbursements 210.8 226.3 244.4 253.2 256.1 257.3 259.5 261.7 262.0 263.8 266.1 267.1 2 1 0 9 Dispo M s a a n bl u e f a p c e t r u s r o in n g a l income5 2 1 1 7 8 7 . . 5 4 2 1 3 8 2 3 . . 4 8 2 1 5 9 2 6 . . 1 5 2 20 6 1 1 . . 1 4 2 2 6 0 4 3 . . 0 0 2 2 6 0 8 4 . . 1 0 2 20 7 7 0 . . 5 3 2 2 6 0 9 5 . . 6 7 2 2 7 0 1 5 . . 7 8 2 2 7 0 3 7 . . 8 0 2 2 7 0 5 7 . . 6 8 2 2 7 0 6 9 . . 9 0 21 Retail sales 199.3 210.8 225.1 231.8 233.2 232.2 232.4 235.5 237.4 237.3 238.6 240.3 Prices7 22 Consumer (1982-84 = 100) 109.6 113.6 118.3 120.5 121.1 121.6 122.3 123.1 123.8 124.1 124.4 124.6 23 Producer finished goods (1982 = 100) ... 103.2 105.4 108.0 110.0 111.1 111.7 112.1 113.0 114.2 114.0 113.5 113.1 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. 1989 CCaatteeggoorryy 11998866 11998877 11998888 Jan. Feb. Mar. Apr. May June July Aug. HOUSEHOLD SURVEY DATA 1 Noninstitutional population' 182,822 185,010 186,837 187,859 187,979 188,102 188,228 188,377 188,518 188,672 188,808 2 Labor force (including Armed Forces)1 120,078 122,122 123,893 125,643 125,383 125,469 125,863 125,806 126,291 126,145 126,228 3 Civilian labor force 111177,,883344 111199,,886655 112211,,666699 112233,,442288 112233,,118811 112233,,226644 112233,,665599 112233,,661100 112244,,110022 112233,,995566 112244,,001188 Employment 4 Nonagricultural industries2 106,434 109,232 111,800 113,411 113,630 113,930 114,009 114,102 114,445 114,240 114,290 5 Agriculture 3,163 3,208 3,169 3,300 3,223 3,206 3,104 3,112 3,096 3,219 3,307 Unemployment 6 Number 8,237 7,425 6,701 6,716 6,328 6,128 6,546 6,395 6,561 6,497 6,421 7 Rate (percent of civilian labor force).... 7.0 6.2 5.5 5.4 5.1 5.0 5.3 5.2 5.3 5.2 5.2 8 Not in labor force 62,744 62,888 62,944 62,216 62,596 62,633 62,365 62,571 62,227 62,527 62,580 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 99,525 102,310 106,039 107,442 107,711 107,888 108,101 108,310 108,607r 108,791r 108,901 10 Manufacturing 18,965 19,065 19,536 19,648 19,648 19,680 19,672 19,667 19,650'' 19,659r 19,670 11 Mining 777 721 733 711 711 714 720 722 715 nor 729 12 Contract construction 4,816 4,998 5,294 5,267 5,270 5,252 5,279 5,283 5,283r 5,317r 5,325 13 Transportation and public utilities 5,255 5,385 5,584 5,654 5,667 5,666 5,682 5,700 5,716 5,741r 5,619 14 23,683 24,381 25,362 25,553 25,631 25,685 25,695 25,750 25,781r 25,822r 25,847 15 Finance 6,283 6,549 6,679 6,746 6,763 6,774 6,776 6,790 6,808r 6,812 6,836 16 Service 23,053 24,196 25,464 26,318 26,434 26,520 26,651 26,711 26,931r 26,972r 27,057 17 Government 16,693 17,015 17,387 17,545 17,587 17,597 17,626 17,687 17,723r 17,761r 17,818 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 • November 1989 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1988 1989 1988 1989 1988 1989 Q3 Q4 QL Q2' Q3 Q4 QL Q2 Q3 Q4 QL Q2' Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 138.4 139.9 140.7 141.8 165.2 166.3 167.5 168.7 83.8 84.1 84.0 84.0 2 Mining 103.9 104.2 101.8 101.9 126.3 125.7 125.1 124.7 82.3 82.9 81.3 81.7 3 Utilities 115.1 114.3 116.0 115.6 140.4 140.7 141.0 141.4 81.9 81.3 82.3 81.8 4 Manufacturing 144.0 145.8 147.0 148.2 171.5 172.8 174.3 175.7 84.0 84.4 84.4 84.4 5 Primary processing 125.9 127.7 127.8 127.7 143.9 145.2 146.5 147.8 87.5 87.9 87.3 86.4 6 Advanced processing 154.9 156.7 158.6 160.7 188.1 189.5 191.0 192.6 82.4 82.7 83.0 83.4 7 Materials 126.5 128.0 127.6 127.7 150.1 150.8 151.7 152.6 84.3 84.9 84.1 83.8 8 Durable goods 137.1 139.2 138.6 139.0 167.9 169.0 170.1 171.3 81.6 82.4 81.5 81.1 9 Metal materials 92.7 94.8 92.3 90.0 109.5 109.8 110.2 110.6 84.8 86.3 83.8 81.4 10 Nondurable goods 132.8 135.4 136.3 137.1 149.8 151.2 152.7 154.2 88.6 89.5 89.3 88.9 11 Textile, paper, and chemical .. 135.3 138.1 139.2 139.8 150.2 151.8 153.5 155.3 90.0 91.0 90.7 90.0 12 Paper 148.9 148.6 148.4 145.7 150.7 152.3 154.0 155.8 98.8 97.6 96.4 93.5 13 Chemical 139.4 144.1 145.4 145.7 157.4 159.3 161.4 163.7 88.6 90.5 90.1 89.0 14 Energy materials 102.5 102.0 100.7 100.6 119.0 118.7 118.4 118.3 86.0 86.0 85.0 85.1 Previous cycle2 Latest cycle3 1988 1988 1989 High Low High Low Aug. Dec. Jan. Feb. Mar. Apr. Mayr Juner Julyr Aug. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 83.8 84.3 84.3 83.9 83.8 84.2 84.0 83.6 83.8 83.8 16 Mining 92.8 87.8 95.2 76.9 82.2 83.6 82.2 80.6 81.2 82.0 81.8 81.2 81.6 83.6 17 Utilities 95.6 82.9 88.5 78.0 83.9 82.0 80.9 82.6 83.3 82.9 81.8 80.6 81.6 80.4 18 Manufacturing 87.7 69.9 86.5 68.0 84.0 84.4 84.7 84.3 84.1 84.5 84.3 84.3 84.1 84.0 19 Primary processing.... 91.9 68.3 89.1 65.0 87.4 87.9 88.4 87.0 86.4 86.8 86.2 86.2 87.0 86.8 20 Advanced processing.. 86.0 71.1 85.1 69.5 82.4 82.8 83.1 83.0 83.0 83.5 83.4 83.4 82.8 82.8 21 Materials 92.0 70.5 89.1 68.5 84.3 84.9 84.6 84.0 83.7 84.2 83.8 83.5 83.8 84.0 22 Durable goods 91.8 64.4 89.8 60.9 81.4 82.1 82.1 81.5 80.9 81.3 81.0 81.1 81.3 81.2 23 Metal materials 99.2 67.1 93.6 45.7 83.4 84.6 86.1 83.8 81.5 83.6 79.8 80.7 81.6 81.9 24 Nondurable goods .... 91.1 66.7 88.1 70.7 88.8 89.8 90.1 89.0 88.8 89.2 88.7 88.8 8899..55 8888..99 25 Textile, paper, and chemical 92.8 64.8 89.4 68.8 90.3 91.3 91.5 90.3 90.2 90.7 89.6 89.9 90.1 90.4 ?b 98.4 70.6 97.3 79.9 98.4 98.4 98.1 9955..88 95 3 94 5 93 2 92 8 9944..11 71 Chemical 92.5 64.4 87.9 63.5 89.0 90.7 90.7 8899..88 89.7 90.1 88.4 88.5 8899 88 28 Energy materials 94.6 86.9 94.0 82.3 86.6 86.5 84.9 84.9 85.4 86.0 85.5 83.7 83.8 85.4 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 pro- 1988 Groups por- avg. tion Aug. Sept. Oct, Nov. Dec. Jan. Feb. Mar. Apr. Ma/ June July" Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 137.2 138.5 138.6 139.4 139.9 140.4 140.8 140.5 140.7 141.7 141.6 141.9 142.0 2 Products 57.72 145.9 147.3 147.4 148.1 148.4 149.4 150.1 150.0 150.5 151.6 151.7 152.3 152.0 4 3 5 6 7 Ma F In t i e n t C E r e a i o q r a l m n u l p s s i e p r u d o m m i d a e e u t n r e c t t g p s o ro od d s u cts 2 4 4 1 1 5 2 4 2 9 . . . . . 5 2 9 2 7 2 8 4 5 7 1 1 1 1 1 2 5 5 3 4 5 1 8 3 4 . . . . . 5 2 9 2 3 1 1 1 1 1 2 3 5 6 4 6 5 2 0 5 . . . . . 5 0 3 1 8 1 1 1 1 1 2 6 3 5 4 6 0 4 2 5 . . . . . 5 4 8 9 8 1 1 1 1 1 3 2 5 5 4 6 7 9 4 6 . . . . . 4 5 7 0 4 1 1 1 1 1 5 3 5 2 4 9 6 4 8 6 . . . . . 9 8 2 3 8 1 1 1 1 1 6 3 4 2 5 0 8 7 8 5 . . . . . 4 2 7 3 0 1 1 1 1 1 2 3 5 6 4 8 8 6 1 8 . . . . . 5 6 1 1 2 1 1 1 1 1 2 6 4 3 5 7 1 8 8 5 . . . . . 6 4 6 7 1 1 1 1 1 1 4 2 3 6 5 8 7 8 2 6 . . . . . 9 3 4 8 1 1 1 1 1 1 5 2 6 5 3 6 8 4 0 9 . . . . . 5 2 3 2 5 1 1 1 1 1 6 5 5 3 2 5 0 6 9 7 . . . . . 4 4 3 2 9 1 1 1 1 1 5 3 6 5 2 7 9 5 0 7 . . . . . 0 6 9 9 7 1 1 1 1 1 6 5 2 5 3 5 0 8 7 8 . . . . . 7 4 4 3 9 Consumer goods 9 8 Du A ra u b to le m c o o ti n v s e u m pr e o r d g u o c o ts d s 6 2 . . 8 9 9 8 1 12 2 5 4 . . 3 9 1 12 2 5 4 . . 7 2 1 12 2 6 6 . . 3 4 1 1 2 2 8 9 . . 9 3 1 1 2 2 9 9 . . 5 2 1 13 3 1 4 . . 9 5 1 1 3 3 2 1 . . 5 5 1 13 3 1 1 . . 6 6 1 1 2 3 8 0 . . 9 1 1 13 3 2 1 . . 2 7 1 13 2 1 8 . . 2 6 1 1 2 3 5 0. . 8 8 1 1 2 2 0 8 . . 4 0 1 1 1 0 1 2 Au T A to r u u s t c o a k s n , s d , c c o t o r n u n s c s u k u m s m e e r r 1 1 . . . 6 7 16 3 9 1 1 9 7 2 3 7 2 . . . 4 0 7 1 1 9 7 2 3 9 3 . . . 0 0 1 1 1 9 7 2 7 5 4 . . . 7 3 8 1 1 1 7 0 2 8 1 8 . . . 4 3 3 1 1 1 0 8 2 1 2 9 . . . 0 4 5 1 1 1 0 9 3 5 9 8 . . . 1 1 0 2 1 9 0 3 9 2 5 . . . 6 3 6 2 1 9 0 3 6 1 3 . . . 0 9 1 1 1 9 9 2 5 0 8 . . . 0 0 3 1 1 9 9 3 8 2 1 . . . 8 8 7 1 1 9 8 2 6 5 7 . . . 0 5 4 1 1 9 2 8 1 3 3 . . . 4 6 3 1 1 8 7 1 1 4 3 . . . 2 5 9 13 Auto parts and allied goods 1.19 128.1 125.9 128.8 129.8 129.5 129.3 127.9 129.4 129.8 131.7 130.4 129.0 130.2 1 1 4 5 Ho A m p e p l g ia o n o c d e s s , AJC and TV 3 1 . . 9 2 1 4 1 12 4 5 4 . . 6 1 1 1 4 2 6 6 . . 5 8 1 12 4 6 4 . . 2 9 1 1 2 5 9 4 . . 7 4 1 1 2 5 8 0 . . 9 4 1 1 3 5 0 1 . . 0 0 1 15 3 1 0 . . 0 7 1 1 3 5 1 3 . . 6 9 1 15 3 1 1 . . 6 1 1 1 3 5 2 1 . . 6 7 1 1 3 5 3 1 . . 3 3 1 15 3 5 4 . . 8 7 1 15 3 0 3 . . 9 8 1 1 6 7 Ca A rp p e p t l i i n a g n c a e n s d a f n u d r n T it V u re 1 . . 9 1 6 9 1 14 3 3 6 . . 6 2 1 1 3 4 7 6 . . 2 1 1 14 3 3 7 . . 7 1 1 1 3 5 8 1 . . 8 9 1 1 3 4 9 8 . . 8 9 1 1 4 5 0 0 . . 5 0 1 1 4 4 1 9. . 5 1 1 1 4 5 1 3 . . 3 0 1 1 4 5 0 2 . . 7 3 1 1 4 5 2 2 . . 8 5 1 1 4 5 4 1 . . 3 4 1 1 4 5 3 5 . . 0 1 1 1 4 4 2 8 . . 6 1 18 Miscellaneous home goods 1.71 106.3 106.8 106.6 106.7 107.3 108.9 110.1 110.1 110.9 113.0 114.1 114.8 116.5 19 Nondurable consumer goods 18.63 137.1 138.5 138.0 139.0 139.7 140.5 141.1 141.4 141.4 142.2 142.1 142.9 142.9 20 Consumer staples 15.29 144.9 146.6 145.8 147.0 147.9 148.9 149.4 149.7 149.9 150.7 150.7 151.4 151.4 21 Consumer foods and tobacco 7.80 140.9 141.3 141.1 142.4 143.7 144.5 144.8 144.3 143.3 144.7 144.7 145.3 145.3 22 Nonfood staples 7.49 149.1 152.1 150.7 151.8 152.2 153.6 154.2 155.4 156.9 156.9 156.9 157.8 157.8 23 Consumer chemical products 2.75 180.0 183.8 185.0 186.1 185.7 186.8 187.6 187.8 188.9 187.3 189.1 189.4 188.2 24 Consumer paper products 1.88 163.4 165.3 166.3 167.1 167.8 169.0 174.2 177.0 180.4 180.9 180.9 183.1 182.5 2 2 5 6 Co C n o su n m su e m r e e r n f e u rg el y 2 1 . . 8 44 6 1 9 1 5 0 . . 4 0 1 9 1 5 3 . . 5 0 1 9 0 2 7 . . 7 6 1 9 0 5 8 . . 3 9 1 9 0 4 9 . . 1 8 1 9 1 6 1 . . 3 6 1 9 0 6 9 . . 7 1 1 9 1 5 0 . . 0 1 1 9 1 5 0 . . 6 7 1 9 1 7 2 . . 3 0 1 9 1 3 0 . . 6 1 1 9 1 5 0 . . 6 9 1 9 1 7 2 . . 3 4 27 Residential utilities 1.42 124.8 130.9 122.8 122.7 125.8 127.1 121.7 125.4 126.1 127.0 127.0 126.6 Equipment 3 2 2 3 3 3 3 3 4 8 9 0 1 2 3 5 Bu B D si u e T n M C P C s f e o r e o i o a a s n w n m n s n n e s s e u s s m e a t r s i f r n t e a a u d e r c n c q c t d t d u i u i a o e r i s l i p f n p n e m , a g n c m e s e n e i t n e e i q q n u u g i , i p p a m m n e d e n n t f t arm 1 1 2 3 5 2 8 3 4 1 . . . . . . . . 0 4 3 2 2 6 0 2 1 8 9 4 2 7 7 7 2 1 1 1 1 1 7 8 4 5 1 6 3 8 1 9 5 7 4 3 1 5 . . . . . . . . 9 4 2 6 9 3 3 9 2 1 1 1 1 1 9 7 4 1 6 8 3 6 0 3 5 9 0 4 4 5 . . . . . . . . 9 2 1 8 2 9 0 2 2 1 1 1 1 1 9 7 4 6 1 6 8 3 4 2 8 5 6 0 4 5 . . . . . . . . 3 7 2 6 8 8 5 8 2 1 1 1 1 1 7 9 4 6 2 6 8 3 4 1 5 0 0 5 4 6 . . . . . . . . 2 5 2 4 3 1 0 2 2 1 1 1 1 1 9 7 4 6 2 6 8 3 4 2 7 1 2 5 2 6 . . . . . . . . 5 2 0 1 3 5 2 2 2 1 1 1 1 1 9 7 4 6 8 2 3 6 4 1 8 2 0 4 7 6 . . . . . . . . 6 8 9 5 9 6 0 2 2 1 1 1 1 1 9 7 5 2 6 8 3 6 4 2 2 5 3 0 6 7 . . . . . . . . 4 3 8 7 8 0 3 1 2 1 1 1 1 1 9 7 5 7 6 2 3 6 5 2 4 5 9 5 7 7 . . . . . . . . 6 7 0 2 3 8 3 9 2 1 1 1 1 1 9 7 5 7 3 2 6 6 6 3 7 8 8 3 8 6 . . . . . . . . 9 0 7 6 6 9 9 3 2 1 1 1 1 1 9 7 6 2 6 7 3 7 7 3 0 4 7 9 9 0 . . . . . . . . 6 6 1 8 8 9 7 3 2 1 1 1 1 1 9 7 6 7 8 6 4 2 6 3 3 1 0 9 0 5 . . . . . . . . 3 5 3 7 2 1 9 3 2 1 1 1 1 1 9 7 6 6 2 7 4 8 6 2 3 9 4 1 2 1 . . . . . . . . 3 7 4 8 8 8 0 1 2 1 1 1 1 1 9 7 6 6 8 7 2 4 6 2 8 1 4 1 1 2 . . . . . . . . 0 6 9 7 5 1 3 1 Intermediate products 3 3 3 3 6 7 8 9 B C u o G C s n i o e s n t n m e r e u s m r s c a e t l s i r o u c b n i p u a p s l s i l u i n e e p e n s p s e s l r i g e s y s u p p p ro li d es u cts 5 6 5 1 . . . . 9 9 6 3 5 9 7 1 1 1 1 1 3 6 6 3 8 2 8 6 . . . . 6 5 5 3 1 1 1 1 7 6 3 3 0 4 8 7 . . . . 6 4 1 7 1 1 1 13 3 7 6 8 6 1 5 . . . . 4 7 8 2 1 1 1 1 4 3 6 7 0 8 5 2 . . . . 0 2 9 3 1 1 1 14 7 6 3 0 2 5 4 . . . . 7 9 7 3 1 1 1 1 4 6 3 7 1 6 5 3 . . . . 4 7 8 8 1 1 1 1 3 7 4 6 8 5 2 8 . . . . 2 9 3 8 1 1 1 1 3 6 7 3 9 8 5 8 . . . . 5 4 4 3 1 1 1 1 3 7 7 4 9 7 0 0 . . . . 3 4 4 3 1 1 1 17 3 4 7 0 8 0 7 . . . . 4 0 2 9 1 1 1 1 7 3 4 7 0 8 0 7 . . . . 0 2 2 3 1 1 1 1 3 7 7 4 7 0 8 1 . . . . 2 7 4 0 1 1 1 1 4 3 7 7 1 8 1 8 . . . . 0 3 2 8 Materials 4 4 1 0 Du D ra u b ra le b l g e o c o o d n s s m um at e e r r i p a a ls r ts 20 4 . . 5 9 0 2 1 13 0 5 8 . . 4 9 1 13 0 6 9 . . 6 8 1 1 1 3 1 7 . . 0 8 1 1 1 3 1 8 . . 4 9 1 1 3 1 9 3 . . 8 9 1 13 1 9 2 . . 0 5 1 13 1 9 1 . . 4 7 1 13 1 8 2 . . 6 1 1 13 1 7 0 . . 9 7 1 1 3 1 9 0 . . 0 8 1 13 1 8 1 . . 7 8 1 1 1 3 1 9 . . 5 3 1 1 1 3 0 9 . . 6 9 4 4 4 2 3 4 D Eq u B u ra a ip b s m i l c e e m m nt e a t t p a e a l r r i m t a s l a s t e n r . i e a . l c s 5 9 4 . . . 9 6 6 4 4 4 1 1 9 2 7 5 6 1 . . . 7 7 9 1 1 9 7 2 7 3 7 . . . 5 6 3 1 1 1 7 2 0 4 9 0 . . . 0 2 3 1 1 1 7 3 0 4 0 1 . . . 9 8 1 1 1 1 3 7 0 1 5 1 . . . 3 0 4 1 1 9 7 3 9 4 0. . . 9 1 8 1 1 1 3 7 0 1 5 0 . . . 5 2 8 1 1 9 7 2 8 5 9 . . . 2 7 4 1 1 9 7 2 5 5 8 . . . 3 9 8 1 1 9 7 3 8 6 0 . . . 9 0 0 1 1 9 2 7 4 8 7 . . . 9 4 1 1 1 9 7 3 5 7 0 . . . 6 4 1 1 1 9 7 3 7 8 1 . . . 6 0 1 45 Nondurable goods materials 10.09 132.0 133.1 132.6 134.7 135.1 136.3 137.1 135.9 136.0 137.1 136.8 137.4 139.1 4 4 4 8 6 7 Te P T x u e ti m l x l p e t a i , l t a e e p n r d a m ia p p a l e s t a r e , p r e a ia r n l d s m a c t h e e r m ia i l c s a l 7 1 1 . . . 5 5 5 3 5 2 1 1 13 0 4 4 9 7 . . . 4 9 3 1 1 13 4 1 5 8 0 . . . 7 3 1 1 1 1 3 0 4 4 9 8 . . . 9 2 1 1 1 1 4 3 0 8 7 9 . . . 4 4 5 1 1 13 4 1 7 7 0 . . . 9 2 1 1 1 1 3 1 5 9 0 0 . . . 0 1 3 1 1 1 3 1 5 9 2 0 . . . 9 4 1 1 1 1 4 3 1 7 8 0 . . . 5 6 7 1 1 1 1 3 4 1 9 7 . . . 8 0 3 1 1 1 1 4 4 4 6 0 . . . 6 7 3 1 1 1 1 3 4 6 9 5 . . . 4 2 1 1 1 14 1 4 0 8 5 . . . 0 9 1 1 1 1 1 4 4 9 7 2 . . . 4 7 3 49 Chemical materials 4.46 138.3 140.0 139.0 143.1 144.2 145.1 145.7 145.0 145.4 146.8 144.7 145.5 148.3 50 Miscellaneous nondurable materials ... 2.57 124.9 125.6 125.9 126.6 127.0 128.0 129.1 128.0 127.2 127.8 129.9 129.8 5 5 5 1 2 3 En C P e r r o i g n m y v a e m r r y t a e t e d e n r e f ia u rg l e s y l materials 1 7 4 1 . . . 5 6 1 7 9 2 1 1 9 0 0 2 1 6 . . . 5 8 3 1 1 9 0 0 7 6 3 . . . 7 2 2 1 1 9 0 0 1 1 6 . . . 5 8 8 1 1 9 0 0 2 6 1 . . . 6 0 3 1 1 9 0 0 0 8 2 . . . 7 6 3 1 1 9 0 0 3 7 2 . . . 6 6 3 1 1 9 0 0 2 0 5 . . . 0 5 2 1 1 9 0 0 3 0 4 . . . 5 3 4 1 1 9 0 0 6 1 3 . . . 1 0 7 1 1 9 0 0 7 4 1 . . . 4 1 7 1 1 9 0 0 4 4 1 . . . 7 6 1 1 9 9 0 9 2 2 . . . 0 1 7 1 9 9 0 9 3 2 . . . 1 0 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • November 1989 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1989 1977 Groups c S o I d C e pr t o io p n o r avg. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May' June July Aug. Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities. 15.79 107.5 109.0 107.2 107.2 108.1 108.9 107.2 106.8 107.5 107.9 107.2 106.0 2 Mining 9.83 103.4 103.8 103.7 103.1 104.7 104.9 103.0 100.9 101.5 102.4 102.0 101.2 3 Utilities 5.96 114.3 117.8 113.0 113.9 113.7 115.4 114.0 116.5 117.5 117.1 115.6 114.0 4 Manufacturing 84.21 142.7 144.0 144.4 145.3 145.8 146.3 147.2 146.8 147.0 148.0 148.1 148.6 5 Nondurable 35.11 143.9 145.1 145.3 146.3 146.7 147.1 148.5 148.1 148.6 149.6 149.5 150.4 6 Durable 49.10 141.9 143.2 143.8 144.6 145.2 145.7 146.2 145.9 145.8 146.9 147.1 147.3 Mining 7 Metal 10 .50 93.2 96.6 99.1 101.6 104.6 111.9 106.9 98.6 98.1 96.8 94.0 100.6 8 Coal 11.12 1.60 137.9 137.2 142.2 138.5 149.7 155.1 144.7 134.7 137.7 145.5 137.1 129.2 9 Oil and gas extraction 13 7.07 92.9 93.2 92.0 91.5 90.8 88.9 88.9 89.5 89.6 89.1 90.5 90.3 10 Stone and earth minerals . 14 .66 139.9 141.3 139.7 142.8 144.0 149.4 150.8 142.5 143.5 144.5 146.6 150.0 Nondurable manufactures 11 Foods 7.96 142.7 143.3 143.2 144.0 145.7 145.8 146.6 146.3 145.4 146.6 147.2 12 Tobacco products .62 105.2 105.1 105.0 105.4 102.4 107.0 105.0 104.7 101.5 109.2 105.9 13 Textile mill products 2.29 116.2 116.4 116.2 117.0 117.2 117.9 120.2 119.4 119.7 122.5 123.6 124.5 14 Apparel products 2.79 109.1 108.9 109.9 109.5 110.1 108.8 110.2 110.2 109.9 111.3 111.5 112.2 15 Paper and products 3.15 150.3 151.0 150.9 151.8 150.7 151.7 153.8 151.7 151.7 150.7 150.1 149.5 16 Printing and publishing 4.54 184.2 186.7 188.0 188.1 188.5 188.0 193.0 194.6 198.5 200.1 199.0 200.9 17 Chemicals and products .... 8.05 151.9 154.8 155.3 156.7 157.5 158.1 159.0 158.5 159.2 159.3 158.2 159.4 18 Petroleum products 2.40 96.0 96.0 93.7 96.3 95.0 98.0 98.0 96.3 97.0 97.3 96.9 97.9 19 Rubber and plastic products. 2.80 174.4 175.3 175.3 176.9 177.5 177.5 175.9 175.0 176.4 178.0 180.5 182.5 20 Leather and products .53 59.5 59.4 59.9 61.0 61.5 60.2 62.9 62.9 61.2 61.4 60.3 60.2 Durable manufactures 21 Lumber and products 24 2.30 137.3 133.8 133.5 137.5 139.4 143.0 139.9 132.8 133.4 135.1 135.5 137.1 22 Furniture and fixtures 25 1.27 162.1 164.9 164.9 164.5 165.4 165.4 166.3 164.8 165.8 168.0 170.2 170.6 23 Clay, glass, and stone products. 32 2.72 122.6 122.6 122.6 123.3 124.7 125.1 126.6 125.4 125.5 124.7 123.9 124.1 24 Primary metals 33 5.33 89.2 90.8 93.1 94.2 90.0 93.2 91.1 88.4 90.1 87.2 87.3 25 Iron and steel 331.2 3.49 78.1 78.9 81.4 83.1 77.6 82.2 79.1 75.9 77.0 73.2 72.9 26 Fabricated metal products 34 6.46 120.9 122.1 122.5 122.6 124.6 125.1 124.5 124.5 123.8 123.1 124.8 125.4 27 Nonelectrical machinery.. 35 9.54 170.8 174.1 174.8 173.8 175.4 177.8 178.7 180.8 183.0 184.7 186.5 187.0 28 Electrical machinery 36 7.15 180.1 182.2 181.8 183.0 182.2 180.9 180.9 181.7 181.6 182.2 181.6 182.0 29 Transportation equipment 37 9.13 132.1 131.8 132.7 134.8 135.2 136.8 136.7 136.4 134.8 136.4 135.5 134.2 30 Motor vehicles and parts .... 371 5.25 117.2 117.5 118.5 121.7 122.9 125.5 124.9 123.4 120.4 122.0 119.7 116.5 31 Aerospace and miscellaneous transportation equipment 372-6.9 3.87 152.4 151.3 151.9 152.7 151.9 152.2 152.7 154.0 154.4 155.9 157.1 158.4 32 Instruments 38 2.66 154.3 156.8 157.8 159.9 160.4 159.1 161.0 161.3 161.8 163.0 164.3 165.5 33 Miscellaneous manufactures.... 39 1.46 107.1 108.3 108.5 107.7 109.0 110.9 112.2 110.0 112.5 115.3 117.1 118.8 Utilities 34 Electric. 4.17 132.9 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,824.5 1,828.6 1,828.9 1,853.4 1,855.5 1,875.3 1,885.1 1,879.2 1,878.0 1,893.9 1,885.5 1,884.4 1,870.9 1,874.4 36 Final 405.7 1,401.2 1,404.2 1,404.3 1,423.5 1,426.3 1,442.1 1,447.5 1,449.6 1,442.8 1,460.4 1,449.6 1,448.8 1,433.5 1,437.3 37 Consumer goods. 272.7 902.4 900.4 897.2 915.0 918.4 934.4 935.6 934.3 928.0 939.4 928.5 928.0 917.4 917.9 38 Equipment 133.0 498.8 503.8 507.1 508.4 507.9 507.7 511.9 515.2 514.8 521.1 521.1 520.8 516.0 519.4 39 Intermediate 111.9 423.3 424.3 424.5 430.0 429.3 433.2 437.7 429.6 435.3 433.5 435.9 435.6 437.4 437.1 1. These data also appear in the Board's G.12.3 (414) release. For address, see Industrial Production" and accompanying tables that contain revised indexes inside front cover. 1977=100) through December 1984 in the FEDERAL RESERVE BULLETIN, vol. 71 A major revision of the industrial production index and the capacity July 1985), pp. 487-501. The revised indexes for January through June 1985 were utilization rates was released in July 1985. See "A Revision of the Index of shown in the September BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A51 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1988 1989 IItteemm 11998866 11998877 11998888 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,750 1,535 1,456 1,526 1,508 1,518 1,486 1,403 1,230 1,334 1,347 1,308 1,281 2 1-family 1,071 1,024 994 1,029 1,027 1,058 1,052 989 870 954 905 874 906 3 2-or-more-family 679 511 462 497 481 460 434 414 360 380 442 434 375 4 Started 1,805 1,621 1,488 1,532 1,567 1,577 1,678 1,465 1,409 1,343 1,308 1,406 1,424 5 1-family 1,180 1,146 1,081 1,136 1,138 1,141 1,199 1,029 981 1,029 977 972 1,029 6 2-or-more-family 626 474 407 396 429 436 479 436 428 314 331 434 395 7 Under construction, end of period1 . 1,074 987 919 951 959 956 957 951 942 924 911 914 918 8 1-family 583 591 570 597 603 603 602 594 586 579 572 572 577 9 2-or-more-family 490 397 350 354 356 353 355 357 356 345 339 342 341 10 Completed 1,756 1,669 1,530 1,516 1,429 1,539 1,537 1,610 1,459 1,552 1,442 1,354 1,369 11 1-family 1,120 1,123 1,085 1,088 1,037 1,108 1,141 1,189 1,050 1,115 1,041 965 956 12 2-or-more-family 636 546 445 428 392 431 396 421 409 437 401 389 413 13 Mobile homes shipped 244 233 218 216 227 225 232 212 207 198 205 202 178 Merchant builder activity in 1-family units 14 Number sold 748 672 675 718 650 669 700 621 555 607 646 646 739 15 Number for sale, end of period 357 365 366 353 364 366 369 375 377 377 381 379 371 Price (thousands of dollars)2 Median 16 Units sold 92.2 104.7 113.3 112.9 110.4 121.0 113.0 118.0 123.0 116.7 118.9 123.4 118.8 Average 17 Units sold 112.2 127.9 139.0 137.3 137.3 147.7 138.6 145.3 149.0 144.7 144.0 155.5 143.3 EXISTING UNITS (1-family) 18 Number sold 3,566 3,530 3,594 3,680 3,710 3,920 3,550 3,480 3,400 3,400 3,210 3,360 3,330 Price of units sold (thousands of dollars)2 19 Median 80.3 85.6 89.2 88.9 88.5 88.7 89.7 91.9 92.0 92.9 92.6 93.4 96.7 20 Average 98.3 106.2 112.5 112.3 112.4 112.0 113.0 117.8 116.1 118.0 118.0 118.8 122.1 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 387,043 397,721 409,663 411,074 415,442 425,035 424,791 418,465 419,152 415,783 419,260 415,619 415,681 22 Private 315,313 320,108 328,738 331,374 332,798 336,254 339,481 335,037 340,438 335,363 334,131 333,705 334,732 23 Residential 187,147 194,656 198,101 200,780 202,048 202,480 204,707 202,322 204,456 203,952 200,967 198,557 198,221 24 Nonresidential, total 128,166 125,452 130,637 130,594 130,750 133,774 134,774 132,715 135,982 131,411 133,164 135,148 136,511 Buildings 25 Industrial 13,747 13,707 14,931 15,515 15,413 15,045 15,890 15,098 15,698 16,263 15,977 16,334 16,835 26 Commercial 56,762 55,448 58,104 57,284 56,676 58,659 59,350 58,749 60,653 55,611 56,796 57,406 57,338 77 Other 13,216 15,464 17,278 17,340 17,328 17,744 17,976 17,484 17,634 16,944 17,311 17,126 17,379 28 Public utilities and other 44,441 40,833 40,324 40,455 41,333 42,326 41,558 41,384 41,997 42,593 43,080 44,282 44,959 29 Public 71,727 77,612 80,922 79,700 82,644 88,781 85,310 83,428 78,714 80,420 85,130 81,914 80,949 30 Military 3,868 4,327 3,579 2,617 3,420 3,905 3,440 3,433 3,740 3,133 3,386 3,358 3,024 31 Highway 22,971 25,343 28,524 28,707 28,992 33,674 30,792 27,936 26,091 27,772 27,407 27,258 26,213 32 Conservation and development... 4,646 5,162 4,474 4,343 4,134 4,412 4,121 4,742 4,210 3,077 6,072 4,766 4,221 33 Other 40,242 42,780 44,345 44,033 46,098 46,790 46,957 47,317 44,673 46,438 48,265 46,532 47,491 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 • November 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 Change from 1 month earlier months earlier (at annual rate) IIInnndddeeexxx llleeevvveeelll IIIttteeemmm 1988 1989 1989 AAAuuuggg... 11998888 11998899 111999888999 AAuugg.. AAuugg.. Sept. Dec. Mar. June Apr. May June July Aug. CONSUMER PRICES2 (1982-84=100) 1 All items 4.0 4.7 4.8 4.1 6.1 5.7 .7 .6 .2 .2 .0 124.6 2 4.9 5.4 8.8 3.0 8.2 5.6 .5 .6 .2 .3 .2 125.8 3 Energy items -.4 5.1 2.7 -.4 10.2 24.8 5.1 1.6 -1.0 -.7 -2.0 97.0 4 All items less food and energy 4.4 4.4 4.3 4.9 5.2 3.8 .2 .5 .2 .4 .2 129.3 5 Commodities 3.0 3.1 3.1 4.2 4.1 2.0 .2 .4 -.1 .1 -.3 118.8 6 Services 5.0 5.1 4.8 5.4 5.9 4.3 .2 .5 .4 .6 .3 135.4 PRODUCER PRICES (1982=100) 7 Finished goods 2.6 4.2 5.7 3.0 10.2 5.1 .4 .9 -.1 -.4 -.4 113.3 8 Consumer foods 3.7 4.5 9.2 2.1 13.1 -2.0 ~.6r -.8 .1 .3 118.7 9 Consumer energy -5.9 4.1 -2.7 1.4 41.0 31.0 7.0T 3.2r -3.1 -3.0 -7.3 63.6 10 Other consumer goods 4.2 4.5 5.9 4.4 5.4 5.3 .0r ,6r .7 -.3 .5 124.4 11 Capital equipment 2.5 3.8 6.1 1.7 4.6 4.1 -.1 .4 .7 .0 .3 118.8 12 Intermediate materials3 5.3 3.6 4.6 4.5 8.7 2.5 ,6r ,2r -.2 -.3 -.3 112.0 13 Excluding energy 7.3 3.4 7.2 6.7 5.5 .3 .2 .2 -.2 -.2 -.1 120.0 Crude materials 14 Foods 13.7 -.8 29.1 -7.9 16.9 -18.7 -2.T ,2r -2.6 -1.1 1.7 109.5 15 Energy -16.2 11.3 -27.0 12.3 48.3 22.3 5.2r 1.8r -1.8 2.1 -6.7 73.6 16 Other 12.8 1.9 8.5 12.5 10.3 -9.8 -.3r -l.C -1.3 -1.5 1.2 136.5 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 Q2 Q3 Q4 Ql Q2r GROSS NATIONAL PRODUCT 1 Total 4,231.6 4,524.3 4,880.6 4,838.5 4,926.9 5,017.3 5,113.1 5,201.7 By source 2 Personal consumption expenditures 2,797.4 3,010.8 3,235.1 3,204.9 3,263.4 3,324.0 3,381.4 3,444.1 3 Durable goods 406.0 421.0 455.2 454.6 452.5 467.4 466.4 471.0 4 Nondurable goods 942.0 998.1 1,052.3 1,042.4 1,066.2 1,078.4 1,098.3 1,121.5 5 Services 1,449.5 1,591.7 1,727.6 1,707.9 1,744.7 1,778.2 1,816.7 1,851.7 6 Gross private domestic investment 659.4 699.9 750.3 748.4 771.1 752.8 769.6 775.0 7 Fixed investment 652.5 670.6 719.6 719.1 726.5 734.1 742.0 747.6 8 Nonresidential 435.2 444.3 487.2 487.1 493.2 495.8 503.1 512.5 9 Structures 139.0 133.8 140.3 139.9 142.0 142.5 144.7 142.4 10 Producers' durable equipment 296.2 310.5 346.8 347.2 351.3 353.3 358.5 370.1 11 Residential structures 217.3 226.4 232.4 232.1 233.2 238.4 238.8 235.1 12 Change in business inventories 6.9 29.3 30.6 29.3 44.6 18.7 27.7 27.4 13 Nonfarm 8.6 30.5 34.2 30.4 41.5 40.8 19.1 23.6 14 Net exports of goods and services -97.4 -112.6 -73.7 -74.9 -66.2 -70.8 -54.0 -50.6 15 Exports 396.5 448.6 547.7 532.5 556.8 579.7 605.6 626.1 16 Imports 493.8 561.2 621.3 607.5 623.0 650.5 659.6 676.6 17 Government purchases of goods and services 872.2 926.1 968.9 960.1 958.6 1,011.4 1,016.0 1,033.2 18 Federal 366.5 381.6 381.3 377.1 367.5 406.4 399.0 406.0 19 State and local 505.7 544.5 587.6 583.0 591.0 604.9 617.0 627.2 By major type of product 70 Final sales, total 4,224.8 4,495.0 4,850.0 4,809.2 4,882.3 4,998.7 55,,008855..44 55,,117744..33 71 Goods 1,686.7 1,785.2 1,931.9 1,917.4 1,955.8 1,987.4 2,030.9 2,079.1 77 Durable 724.2 777.6 863.6 857.2 884.0 888.5 894.7 905.2 73 Nondurable 962.5 1,007.6 1,068.3 1,060.2 1,071.8 1,098.9 1,136.2 1,173.9 7.4 Services 2,119.3 2,304.5 2,499.2 2,472.3 2,520.3 2,570.0 2,620.8 2,667.5 25 Structures 425.6 434.6 449.5 448.8 450.8 459.9 461.3 455.1 26 Change in business inventories 6.9 29.3 30.6 29.3 44.6 18.7 27.7 27.4 27 Durable goods 1.2 22.0 25.0 17.0 41.4 32.0 22.0 6.0 28 Nondurable goods 5.6 7.2 5.6 12.3 3.2 -13.3 5.7 21.4 MEMO 29 Total GNP in 1982 dollars 3,717.9 3,853.7 4,024.4 4,010.7 4,042.7 4,069.4 4,106.8 4,132.5 NATIONAL INCOME 30 3,412.6 3,665.4 3,972.6 3,933.6 4,005.7 4,097.4 4,185.2 4,249.6 31 Compensation of employees 2,511.4 2,690.0 2,907.6 2,878.9 2,935.1 2,997.2 3,061.7 3,118.2 32 Wages and salaries 2,094.8 2,249.4 2,429.0 2,405.4 2,452.2 2,505.1 2,560.7 2,608.8 33 Government and government enterprises 393.7 419.2 446.5 443.1 449.6 456.3 466.9 473.5 34 Other 1,701.1 1,830.1 1,982.5 1,962.3 2,002.6 2,048.9 2,093.8 2,135.3 35 Supplement to wages and salaries 416.6 440.7 478.6 473.5 482.9 492.0 501.0 509.4 36 Employer contributions for social insurance 217.3 227.8 249.7 247.7 251.8 255.6 259.7 263.4 37 Other labor income 199.3 212.8 228.9 225.9 231.1 236.5 241.3 246.0 38 Proprietors' income1 282.0 311.6 327.8 331.8 327.0 328.3 359.3 355.5 39 Business and professional 247.2 270.0 288.0 286.5 289.3 296.3 300.3 304.2 40 Farm1 34.7 41.6 39.8 45.4 37.7 32.0 59.0 51.3 41 Rental income of persons2 11.6 13.4 15.7 14.6 16.3 16.1 11.8 9.8 42 Corporate profits1 282.1 298.7 328.6 325.3 330.9 340.2 316.3 307.8 43 Profits before tax3 221.6 266.7 306.8 305.3 314.4 318.8 318.0 296.0 44 Inventory valuation adjustment 6.7 -18.9 -25.0 -28.8 -30.4 -20.1 -38.3 -20.7 45 Capital consumption adjustment 53.8 50.9 46.8 48.9 46.9 41.5 36.6 32.3 46 Net interest 325.5 351.7 392.9 383.0 396.4 415.7 436.1 458.4 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 • November 1989 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1988 1989 AAccccoouunntt 11998866 11998877 1988 Q2 Q3 Q4 Ql Q2r PERSONAL INCOME AND SAVING 1 Total personal income 3,526.2 3,777.6 4,064.5 4,026.6 4,097.6 4,185.2 4,317.8 4,400.3 2 Wage and salary disbursements 2,094.8 2,249.4 2,429.0 2,405.4 2,452.2 2,505.1 2,560.7 2,608.8 3 Commodity-producing industries 625.6 649.9 696.3 690.8 701.6 714.7 726.6 733.7 4 Manufacturing 473.2 490.3 524.0 519.2 527.2 538.1 546.3 549.9 5 Distributive industries 498.8 531.9 571.9 568.0 578.0 587.5 598.8 610.8 6 Service industries 576.7 648.3 714.4 703.5 723.0 746.7 768.4 790.8 7 Government and government enterprises 393.7 419.2 446.5 443.1 449.6 456.3 466.9 473.5 8 Other labor income 199.3 212.8 228.9 225.9 231.1 236.5 241.3 246.0 9 Proprietors' income1 282.0 311.6 327.8 331.8 327.0 328.3 359.3 355.5 10 Business and professional 247.2 270.0 288.0 286.5 289.3 296.3 300.3 304.2 11 Farm1 34.7 41.6 39.8 45.4 37.7 32.0 59.0 51.3 12 Rental income of persons2 11.6 13.4 15.7 14.6 16.3 16.1 11.8 9.8 13 Dividends 85.8 92.0 102.2 100.4 103.6 106.4 109.4 111.4 14 Personal interest income 493.2 523.2 571.1 560.0 576.3 598.6 629.0 655.1 15 Transfer payments 521.5 548.2 584.7 581.8 587.4 593.8 616.4 626.8 16 Old-age survivors, disability, and health insurance benefits ... 269.2 282.9 300.5 299.2 301.4 304.0 316.9 322.9 17 LESS: Personal contributions for social insurance 161.9 172.9 194.9 193.4 196.4 199.6 210.0 213.0 18 EQUALS: Personal income 3,526.2 3,777.6 4,064.5 4,026.6 4,097.6 4,185.2 4,317.8 4,400.3 19 LESS: Personal tax and nontax payments 512.9 571.7 586.6 590.7 585.9 597.8 628.3 652.6 20 EQUALS: Disposable personal income 3,013.3 3,205.9 3,477.8 3,435.9 3,511.7 3,587.4 3,689.5 3,747.7 21 LESS: Personal outlays 2,888.5 3,104.1 3,333.1 3,301.9 3,362.1 3,424.0 3,483.8 3,547.0 22 EQUALS: Personal saving 124.9 101.8 144.7 134.0 149.6 163.4 205.7 200.7 MEMO Per capita (1982 dollars) 23 Gross national product 15,385.5 15,793.9 16,332.8 16,303.7 16,387.1 16,455.3 1166,,556666..44 1166,,662299..88 24 Personal consumption expenditures 10,123.7 10,302.0 10,545.5 10,515.4 10,572.0 10,625.6 10,653.5 10,678.9 25 Disposable personal income 10,905.0 10,970.0 11,337.0 11,273.0 11,377.0 11,466.0 11,625.0 11,622.0 26 Saving rate (percent) 4.1 3.2 4.2 3.9 4.3 4.6 5.6 5.4 GROSS SAVING 27 Gross saving 525.3 553.8 642.4 633.4 669.8 647.4 693.5 695.8 28 Gross private saving 669.5 663.8 738.6 722.5 742.4 769.3 792.1 793.7 29 Personal saving 124.9 101.8 144.7 134.0 149.6 163.4 205.7 200.7 30 Undistributed corporate profits1 84.5 75.3 80.3 78.3 77.6 81.7 53.4 52.0 31 Corporate inventory valuation adjustment 6.7 -18.9 -25.0 -28.8 -30.4 -20.1 -38.3 -20.7 Capital consumption allowances 32 Corporate 285.9 303.1 321.7 331199..00 332233..11 332299..77 333355..22 333399..77 33 Noncorporate 174.2 183.6 191.9 191.2 192.1 194.4 197.8 201.3 34 Government surplus, or deficit (-), national income and product accounts -144.1 -110.1 -96.1 -89.1 -72.7 -121.9 -98.7 --9977..99 -206.9 -161.4 -145.8 -141.5 -122.5 -167.6 -147.5 -145.4 36 State and local 62.8 51.3 49.7 52.4 49.8 45.7 48.8 47.5 37 Gross investment 523.6 549.0 632.8 633.4 661.2 630.8 669.3 677.5 38 Gross private domestic 659.4 699.9 750.3 748.4 771.1 752.8 769.6 775.0 39 Net foreign -135.8 -150.9 -117.5 -115.0 -109.9 -122.0 -100.3 -97.5 40 Statistical discrepancy -1.8 -4.7 -9.6 -0.1 -8.6 j -16.6 -24.1 -18.3 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1988 1989 IItteemm ccrreeddiittss oorr ddeebbiittss 11998866 11998877 11998888 Q2 Q3 Q4 QL Q2P 1 Balance on current account -133,249 -143,700 -126,548 -33,485 -32,340 -28,677 -30,390 -30,988 -33,875 -36,926 -28,191 -25,994 -30,779 3 Merchandise trade balance2 -145,058 -159,500 -127,215 -31,411 -30,339 -32,019 -28,378 -27,718 4 Merchandise exports 223,367 250,266 319,251 78,471 80,604 83,729 87,919 90,866 5 Merchandise imports -368,425 -409,766 -446,466 -109,882 -110,943 -115,748 -116,297 -118,584 6 Military transactions, net -4,576 -2,857 -4,606 -1,033 -1,006 -1,604 -1,498 -1,630 7 Investment income, net 21,647 22,283 2,227 -2,465 -2,590 4,489 -2,416 -5,015 8 Other service transactions, net 10,517 10,586 17,702 4,323 4,971 5,475 5,428 6,469 9 Remittances, pensions, and other transfers -4,049 -4,063 -4,279 -971 -1,088 -1,090 -1,186 -952 10 U.S. government grants (excluding military) -11,730 -10,149 -10,377 -1,928 -2,288 -3,928 -2,340 -2,142 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -2,024 997 2,999 -885 1,961 3,413 1,049 -372 12 Change in U.S. official reserve assets (increase, -) 312 9,149 -3,566 39 -7,380 2,272 -4,000 -12,095 N Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -246 -509 474 180 -35 173 -188 68 15 Reserve position in International Monetary Fund 1,501 2,070 1,025 69 202 307 316 -159 16 Foreign currencies -942 7,588 -5,064 -210 -7,547 1,791 -4,128 -12,004 17 Change in U.S. private assets abroad (increase, -) -97,954 -86,363 -81,543 -15,273 -32,467 -38,332 -28,367 19,943 18 Bank-reported claims -59,975 -42,119 -54,481 -12,602 -26,229 -30,916 -22,132 28,527 19 -7,396 5,201 -1,684 -6,443 255 4,569 1,835 20 U.S. purchase of foreign securities, net -4,271 -5,251 -7,846 1,333 -1,592 -3,047 -2,568 -5,908 21 U.S. direct investments abroad, net -26,312 -44,194 -17,533 2,439 -4,901 -8,938 -5,502 -2,676 22 Change in foreign official assets in United States (increase, +) ... 35,594 45,193 38,882 5,895 -2,234 10,589 7,477 -4,948 23 U.S. Treasury securities 34,364 43,238 41,683 5,853 -3,769 11,897 4,634 -9,763 24 Other U.S. government obligations -1,214 1,564 1,309 202 572 697 721 -92 75 Other U.S. government liabilities4 2,141 -2,520 -1,284 -517 -232 -232 -304 396 26 Other U.S. liabilities reported by U.S. banks3 1,187 3,918 -331 774 1,703 -1,036 1,974 3,924 27 Other foreign official assets5 -884 -1,007 -2,495 -417 -508 -737 452 587 28 Change in foreign private assets in United States (increase, +) ... 186,011 172,847 180,418 59,438 48,413 70,170 52,529 1,831 29 U.S. bank-reported liabilities3 79,783 89,026 68,832 30,455 23,291 32,223 13,261 -22,822 30 -2,641 2,450 6,558 -59 2,350 2,702 2,852 31 Foreign private purchases of U.S. Treasury securities, net . 3,809 -7,643 20,144 5,458 3,422 5,336 8,590 2,722 32 Foreign purchases of other U.S. securities, net 70,969 42,120 26,448 9,699 7,454 6,871 8,665 9,600 33 Foreign direct investments in United States, net 34,091 46,894 58,436 13,885 11,896 23,038 19,161 12,331 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 11,308 1,878 -10,641 -15,729 24,047 -19,434 1,702 26,629 36 --33,,771144 --44,,555566 44,,443311 44,,112277 --22,,334400 37 Statistical discrepancy in recorded data before seasonal adjustment 11,308 1,878 -10,641 -12,015 28,603 -23,865 -2,425 28,969 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) 312 9,149 -3,566 39 -7,380 2,272 -4,000 -12,095 39 Foreign official assets in United States (increase, +) excluding line 25 33,453 47,713 40,166 6,412 -2,002 10,821 7,781 -5,344 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22 above) -9,327 -9,955 -3,109 -1,776 -459 672 7,143 281 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 96 53 92 4 7 40 12 1144 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Primarily associated with military sales contracts and other transactions 38-41. arranged with or through foreign official agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing. Military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business 3. Reporting banks include all kinds of depository institutions besides commer- (Department of Commerce). cial banks, as well as some brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • November 1989 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1989 IItteemm 11998866 11998877 11998888 Jan. Feb. Mar. Apr. May Juner July? 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 227,159 254,122 322,426 28,980 28,839 30,065 30,759 30,455 31,286 30,736 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 365,438 406,241 440,952 37,877 38,220 39,549 39,045 40,534 39,293 38,317 Trade balance 3 Customs value -138,279 -152,119 -118,526 -8,897 -9,381 -9,484 —8,286 -10,079 -8,007 -7,581 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 1989 TTyyppee 11998866 11998877 11998888 Feb. Mar. Apr. May June July Aug P 1 Total 48,511 45,798 47,802 49,373 49,854 50,303 54,941 60,502 63,462 62,364 2 Gold stock, including Exchange Stabilization Fund1 11,064 11,078 11,057 11,061 11,061 11,061 11,060 11,063 11,066 11,066 3 Special drawing rights2'3 8,395 10,283 9,637 9,653 9,443 9,379 9,134 9,034 9,340 9,240 4 Reserve position in International Monetary Fund2 11,730 11,349 9,745 9,353 9,052 9,132 8,513 8,888 9,055 8,644 5 Foreign currencies4 17,322 13,088 17,363 19,306 20,298 20,731 26,234 31,517 34,001 33,413 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 1989 AAsssseettss 11998866 11998877 11998888 Feb. Mar. Apr. May June July Aug.* 1 Deposits 287 244 347 325 351 352 428 275 371 265 Assets held in custody 2 U.S. Treasury securities 155,835 195,126 232,547 230,860 234,075 235,145 232,004 229,914 233,170 238,007 3 Earmarked gold 14,048 13,919 13,636 13,609 13,602 13,576 13,612 13,545 13,530 13,516 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 1989 AAsssseett aaccccoouunntt 11998866 11998877 11998888 Jan. Feb. Mar. Apr. May June July All foreign countries 1 Total, all currencies 456,628 518,618 506,062 496,755 501,682 519,740 517,276 521,436 523,674' 534,202 2 Claims on United States 114,563 138,034 169,111 167,143 168,558 177,902 171,136' 177,987 177,445 179,615 3 Parent bank 83,492 105,845 129,856 127,403 128,115 134,002 128,567' 134,026 132,380 133,135 4 Other banks in United States . 13,685 16,416 14,918 14,559 13,506 14,697 13,459 13,040 14,218 15,744 5 Nonbanks 17,386 15,773 24,337 25,181 26,937 29,203 29,110 30,921 30,847 30,736 6 Claims on foreigners 312,955 342,520 299,728 291,892 296,240 303,906 305,483' 302,808 303,720' 310,427 7 Other branches of parent bank 96,281 122,155 107,179 102,482 103,962 110,434 113,824' 116,506 115,913' 117,438 8 Banks 105,237 108,859 96,932 93,663 95,696 97,723 %,830 94,042 94,902' 95,619 9 Public borrowers 23,706 21,832 17,163 16,931 16,682 17,020 16,101 16,095 16,709 17,025 10 Nonbank foreigners 87,731 89,674 78,454 78,816 79,900 78,729 78,728 76,165 76,196' 80,345 11 Other assets 29,110 38,064 37,223 37,720 36,884 37,932 40,657 40,641 42,509' 44,160 12 Total payable in U.S. dollars 317,487 350,107 358,040 345,523 346,990 366,403 359,841 366,315 367,562 371,853 13 Claims on United States 110,620 132,023 163,456 160,520 161,336 170,091 163,964' 169,7% 169,520 171,041 14 Parent bank 82,082 103,251 126,929 124,4% 124,288 129,431 124,268' 128,771 127,352 128,063 15 Other banks in United States . 12,830 14,657 14,167 12,908 12,025 13,259 12,539 11,909 13,207 14,734 16 Nonbanks 15,708 14,115 22,360 23,116 25,023 27,401 27,157 29,116 28,% 1 28,244 17 Claims on foreigners 195,063 202,428 177,685 167,288 168,293 178,134 178,298' 177,308 180,013 181,442 18 Other branches of parent bank 72,197 88,284 80,736 76,221 76,565 82,797 86,767' 86,625 88,874 90,077 19 Banks 66,421 63,707 54,884 49,391 50,013 53,893 50,815 49,793 50,627 49,911 20 Public borrowers 16,708 14,730 12,131 11,749 11,781 11,831 11,467 11,282 11,815 11,693 21 Nonbank foreigners 39,737 35,707 29,934 29,927. 29,934 29,613 29,249 29,608 28,697 29,761 22 Other assets 11,804 15,656 16,899 17,715 17,361 18,178 17,579 19,211 18,029 19,370 United Kingdom 23 Total, all currencies 140,917 158,695 156,835 156,529 154,879 154,856 153,146 155,532 153,968 161,882 24 Claims on United States 24,599 32,518 40,089 40,954 40,547 40,715 39,475 39,599 38,014 42,147 25 Parent bank 19,085 27,350 34,243 34,928 34,449 35,315 34,741 35,642 33,763 37,713 26 Other banks in United States . 1,612 1,259 1,123 1,128 1,268 1,380 1,227 1,243 1,125 1,121 27 Nonbanks 3,902 3,909 4,723 4,898 4,830 4,020 3,507 2,714 3,126 3,313 28 Claims on foreigners 109,508 115,700 106,388 104,668 103,806 103,443 102,438 104,504 103,773 106,586 29 Other branches of parent bank 33,422 39,903 35,625 35,322 33,650 35,305 32,954 35,537 34,948 35,440 30 Banks 39,468 36,735 36,765 34,907 36,159 35,382 37,079 37,412 37,357 36,519 31 Public borrowers 4,990 4,752 4,019 4,090 3,808 3,757 3,471 3,627 3,599 3,788 32 Nonbank foreigners 31,628 34,310 29,979 30,349 30,189 28,999 28,934 27,928 27,869 30,839 33 Other assets 6,810 10,477 10,358 10,907 10,526 10,698 11,233 11,429 12,181 13,149 34 Total payable in U.S. dollars 95,028 100,574 103,503 102,873 100,863 103,211 98,463 101,612 99,028 103,512 35 Claims on United States 23,193 30,439 38,012 38,591 37,707 38,265 36,772 36,675 34,990 38,506 36 Parent bank 18,526 26,304 33,252 33,925 33,106 34,320 33,499 34,119 32,059 36,041 37 Other banks in United States , 1,475 1,044 964 678 816 937 872 862 844 821 38 Nonbanks 3,192 3,091 3,7% 3,988 3,785 3,008 2,401 1,694 2,087 1,644 39 Claims on foreigners 68,138 64,560 60,472 58,798 57,567 59,201 56,227 58,395 58,746 59,137 40 Other branches of parent bank 26,361 28,635 28,474 27,939 26,475 28,145 25,389 26,036 26,541 27,955 41 Banks 23,251 19,188 18,494 16,778 17,246 17,715 17,680 18,458 18,745 17,080 42 Public borrowers 3,677 3,313 2,840 2,869 2,774 2,786 2,696 2,737 2,606 2,702 43 Nonbank foreigners 14,849 13,424 10,664 11,212 11,072 10,555 10,462 11,164 10,854 11,400 44 Other assets 3,697 5,575 5,019 5,484 5,589 5,745 5,464 6,542 5,292 5,869 Bahamas and Caymans 45 Total, all currencies 142,592 160,321 170,639 162,352 165,862 179,185 172,324 173,137 171,780 172,791 46 Claims on United States 78,048 85,318 105,320 103,016 103,989 111,951 105,273 111,823 109,800 107,831 47 Parent bank 54,575 60,048 73,409 71,065 71,100 75,234 68,969 73,627 70,735 67,417 48 Other banks in United States 11,156 14,277 13,145 12,742 11,563 12,275 11,563 10,807 12,116 13,712 49 Nonbanks 12,317 10,993 18,766 19,209 21,326 24,442 24,741 27,389 26,949 26,702 50 Claims on foreigners 60,005 70,162 58,393 52,503 54,732 59,615 60,103 53,984 54,537 57,136 51 Other branches of parent bank 17,296 21,277 17,954 15,982 18,454 20,048 26,261 21,962 22,324 24,462 52 Banks 27,476 33,751 28,268 24,755 24,514 27,727 22,641 21,184 21,202 21,589 53 Public borrowers 7,051 7,428 5,830 5,422 5,513 5,480 5,374 5,280 5,540 5,482 54 Nonbank foreigners 8,182 7,706 6,341 6,344 6,251 6,360 5,827 5,558 5,471 5,603 55 Other assets 4,539 4,841 6,926 6,833 7,141 7,619 6,948 7,330 7,443 7,824 56 Total payable in U.S. dollars 136,813 151,434 163,518 154,981 158,011 172,148 166,389 166,869 165,676 167,261 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 • November 1989 3.14—Continued 1989 11998888 Jan. Feb. Mar. Apr. May June July All foreign countries 57 Total, all currencies 456,628 518,618 506,062 496,755 501,682 519,740 517,276 521,436 523,674' 534,202 58 Negotiable CDs 31,629 30,929 28,511 28,538 30,013 30,768 30,278 29,425 28,116 28,882 59 To United States 152,465 161,390 185,577 172,055 174,956 185,831 179,292' 178,821' 179,858 178,617 60 Parent bank 83,394 87,606 114,720 102,521 105,687 113,779 109,164' 110,579 113,250' 110,134 61 Other banks in United States 15,646 20,355'' 14,737' 13,335' 12,829' 14,499' 14,307 13,564' 12,951 13,300 62 Nonbanks 53,425 53,429' 56, no' 56,199' 56,440' 57,553' 55,821 54,678' 53,657' 55,183 63 To foreigners 253,775 304,803 270,923 274,015 274,898 280,859 282,920' 288,291' 289,603' 300,505 64 Other branches of parent bank 95,146 124,601 111,267 109,125 111,582 116,148 115,380' 121,135 118,950 118,774 65 Banks 77,809 87,274 72,842 72,185 70,484 71,447 72,155 72,903 74,213 79,924 66 Official institutions 17,835 19,564 15,183 18,867 17,323 17,911 17,933 17,795 17,559 18,846 67 Nonbank foreigners 62,985 73,364 71,631 73,838 75,509 75,353 77,452 76,458' 78,881' 82,961 68 Other liabilities 18,759 21,496 21,051 22,147 21,815 22,282 24,786 24,899 26,097 26,198 69 Total payable in U.S. dollars 336,406 361,438 367,483' 354,452' 357,725' 379,610' 372,788' 376,474' 378,331 381,881 70 Negotiable CDs 28,466 26,768 24,045 23,696 25,452 26,287 25,970 25,411 24,129 24,914 71 To United States 144,483 148,442 173,190 159,650 161,449 173,471 166,666' 166,134' 167,217 164,570 72 Parent bank 79,305 81,783 107,150 94,531 96,714 105,534 100,897' 102,643 104,929' 100,534 73 Other banks in United States 14,609 18,951' 13,468' 12,209' 11,375' 13,195' 12,781 11,944' 11,537 11,822 74 Nonbanks 50,569 47,708' 52,572' 52,910' 53,360' 54,742' 52,988 51,547' 50,751' 52,214 75 To foreigners 156,806 177,711 160,766' 161,406' 160,670' 169,407' 169,758' 173,228' 175,393 180,200 76 Other branches of parent bank 71,181 90,469 84,021 82,149 83,253 88,298 87,716' 90,123 90,850 90,916 77 Banks 33,850 35,065 28,493 27,231 27,060 28,949 28,445 29,567 29,686 31,216 78 Official institutions 12,371 12,409 8,224 10,880 8,740 9,953 9,591 9,255 9,852 11,176 79 Nonbank foreigners 39,404 39,768 40,028' 41,146' 41,617' 42,207' 44,006' 44,283' 45,005 46,892 80 Other liabilities 6,651 8,517 9,482 9,700 10,154 10,445 10,394 11,701 11,592 12,197 United Kingdom 81 Total, all currencies 140,917 158,695 156,835 156,529 154,879 154,856 153,146 155,532 153,968 161,882 82 Negotiable CDs 27,781 26,988 24,528 24,253 25,942 26,625 26,157 25,539 24,396 25,342 83 To United States 24,657 23,470 36,784 34,535 35,393 32,757 29,715 30,867 30,013 30,897 84 Parent bank 14,469 13,223 27,849 24,130 25,562 25,098 20,455 20,329 21,892' 19,680 85 Other banks in United States 2,649 1,536' 2,037' 2,364' 1,755' 1,824' 1,551 1,720 1,648 1,852 86 Nonbanks 7,539 8,711' 6,898' 8,041' 8,076' 5,835' 7,709 8,818 6,473' 9,365 87 To foreigners 79,498 98,689 86,026 87,519 83,774 85,863 87,478 88,985 88,381 93,392 88 Other branches of parent bank 25,036 33,078 26,812 26,815 24,553 25,781 25,800 26,867 24,974 25,759 89 Banks 30,877 34,290 30,609 29,329 28,508 29,094 30,714 30,925 31,066 32,901 90 Official institutions 6,836 11,015 7,873 10,010 8,627 9,429 8,637 8,946 8,650 9,586 91 Nonbank foreigners 16,749 20,306 20,732 21,365 22,086 21,559 22,327 22,247 23,691 25,146 92 Other liabilities 8,981 9,548 9,497 10,222 9,770 9,611 9,796 10,141 11,178 12,251 93 Total payable in U.S. dollars 99,707 102,550 105,907' 105,236' 104,430' 107,092' 102,065' 104,356' 101,742 105,700 94 Negotiable CDs 26,169 24,926 22,063 21,500 23,419 24,302 24,073 23,568 22,324 23,132 95 To United States 22,075 17,752 32,588 30,032 30,442 29,578 25,493 26,554 25,401 25,415 96 Parent bank 14,021 12,026 26,404 22,069 22,998 24,013 18,524 18,545 19,411' 16,704 97 Other banks in United States 2,325 1,308' 1,752' 2,158' 1,440' 1,559' 1,227 1,368 1,393 1,477 98 Nonbanks 5,729 4,418' 4,432' 5,805' 6,004' 4,006' 5,742 6,641 4,597' 7,234 99 To foreigners 48,138 55,919 47,083' 49,195' 46,062' 48,221' 47,781' 49,006' 48,491 51,382 100 Other branches of parent bank 17,951 22,334 18,561 18,936 17,139 18,335 17,755 18,030 16,467 17,591 101 Banks 15,203 15,580 13,407 13,090 13,106 12,907 13,439 13,930 13,545 14,173 102 Official institutions 4,934 7,530 4,348 5,897 4,116 5,467 4,365 4,796 5,579 6,131 103 Nonbank foreigners 10,050 10,475 10,767' 11,272' 11,701' 11,512' 12,222' 12,250' 12,900 13,487 104 Other liabilities 3,325 3,953 4,173 4,509 4,507 4,991 4,718 5,228 5,526 5,771 Bahamas and Caymans 105 Total, all currencies 142,592 160,321 170,639 162,352 165,862 179,185 172,324 173,137 171,780 172,791 106 Negotiable CDs 847 885 953 1,118 1,138 1,073 1,025 872 696 717 107 To United States 106,081 113,950 122,332 113,562 114,729 124,736 118,164 120,175 117,737 116,229 108 Parent bank 49,481 53,239 62,894 56,643 57,684 62,689 59,762 64,908 61,642 61,276 109 Other banks in United States 11,715 17,224 11,494 9,890 9,743 11,464 11,346 10,398' 10,034 10,174 110 Nonbanks 44,885 43,487 47,944 47,029 47,302 50,583 47,056 44,869' 46,061 44,779 111 To foreigners 34,400 43,815 45,161 45,602 47,534 50,855 50,606 48,989 50,477 52,907 112 Other branches of parent bank 12,631 19,185 23,686 24,973 25,988 28,010 27,655 26,478 27,763 29,085 113 Banks 8,617 10,769 8,336 7,179 7,795 8,495 8,203 8,233 8,322 8,309 114 Official institutions 2,719 1,504 1,074 1,337 1,379 1,234 1,722 1,164 1,102 1,223 115 Nonbank foreigners 10,433 12,357 12,065 12,113 12,372 13,116 13,026 13,114 13,290 14,290 116 Other liabilities 1,264 1,671 2,193 2,070 2,461 2,521 2,529 3,101 2,870 2,938 117 Total payable in U.S. dollars 138,774 152,927 162,950 154,663 157,890 172,213 166,489 166,954 165,593 166,990 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 1989 IItteemm 11998877 11998888 Jan. Feb. Mar. Apr. May June July 1 Total1 259,556 299,716 301,756 304,185 307,497 313,680 306,361r 301,730 305,606 By type 2 Liabilities reported by banks in the United States 31,838 31,443 36,735 34,641 33,417 39,147 37,971r 36,993 37,560 3 U.S. Treasury bills and certificates 88,829 103,722 98,457 98,192 95,478 96,109 91,798 87,190 87,634 U.S. Treasury bonds and notes 4 Marketable .. 122,432 149,056 151,075 155,374 161,923 161,081 160,013 160,364 163,094 5 Nonmarketable 300 523 527 531 534 538 542 545 549 6 U.S. securities other than U.S. Treasury securities 16,157 14,972 14,962 15,447 16,145 16,805 16,037 16,638 16,769 By area 7 Western Europe 124,620 125,097 126,040 124,806 125,352 129,254 126,222'" 122,280 124,720 8 Canada 4,961 9,584 9,668 9,856 10,156 9,994 9,938 9,604 9,401 9 Latin America and Caribbean 8,328 10,094 9,943 8,875 7,533 7,198 6,091 5,928 7,177 10 Asia 116,098 145,548 147,316 152,236 156,317 158,577 156,016 155,273 155,695 11 Africa 1,402 1,369 1,093 1,143 1,119 1,065 1,182 1,271 952 12 Other countries 4,147 7,501 7,169 6,738 6,485 7,053 6,371r 6,830 7,112 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. 3. Includes nonmarketable certificates of indebtedness (including those payable NOTE. Based on Treasury Department data and on data reported to the in foreign currencies through 1974) and Treasury bills issued to official institutions Treasury Department by banks (including Federal Reserve Banks) and securities of foreign countries. dealers in the United States. 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 1989 IItteemm 11998855 11998866 11998877 June Sept. Dec. Mar. 1 Banks' own liabilities 15,368 29,702 55,438 56,570 65,148 74,776 76,164 2 Banks' own claims 16,294 26,180 51,271 52,914 63,465 68,988 72,659 3 Deposits 8,437 14,129 18,861 18,790 22,594 25,115 25,645 4 Other claims 7,857 12,052 32,410 34,124 40,871 43,874 47,014 5 Claims of banks' domestic customers 580 2,507 551 1,004 335 364 376 1. Data on claims exclude foreign currencies held by U.S. monetary 2. Assets owned by customers of the reporting bank located in the United authorities. 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 • November 1989 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1989 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998866 11998877 11998888 Jan. Feb. Mar. Apr. Mayr June July" 1 All foreigners 540,996 618,874 683,950 660,256 677,624 690,900 683,055 677,712 671,559 662,941 2 Banks' own liabilities 406,485 470,070 513,573 493,030 507,557 523,606 516,319 512,342 510,411 500,662 3 Demand deposits 23,789 22,383 21,894 20,602 21,733 22,483 22,333 21,920 21,330 21,104 4 Time deposits" 130,891 148,374 152,194 145,481 151,137 157,978 157,137 154,770 152,883 149,189 5 Other3 42,705 51,677 51,506 52,322 51,005 54,177 56,549 58,823 61,040 64,461 6 Own foreign offices4 209,100 247,635 287,979 274,625 283,682 288,968 280,299 276,830 275,158 265,908 7 Banks' custody liabilities5 134,511 148,804 170,377 167,226 170,067 167,295 166,736 165,370 161,149 162,279 8 U.S. Treasury bills and certificates6 90,398 101,743 114,976 111,141 110,992 110088,,004488 110066,,882277 110022,,772266 9988,,880044 9999,,776655 9 Other negotiable and readily transferable instruments7 15,417 16,776 16,367 16,763 17,071 16,957 17,278 18,476 17,078 16,893 10 Other 28,696 30,285 39,033 39,321 42,004 42,289 42,631 44,168 45,267 45,621 11 Nonmonetary international and regional organizations8 5,807 4,464 3,224 2,704 3,252 3,764 4,141 3,415 3,586 4,248 12 Banks' own liabilities 3,958 2,702 2,527 1,910 2,679 2,956 3,354 2,980 2,668 2,724 13 Demand deposits 199 124 71 67 74 88 163 76 32 40 14 Time deposits" 2,065 1,538 1,183 565 1,126 1,385 1,502 1,202 1,254 936 15 Other3 1,693 1,040 1,272 1,278 1,479 1,482 1,689 1,702 1,382 1,747 16 Banks' custody liabilities5 1,849 1,761 698 795 574 808 786 435 918 1,524 17 U.S. Treasury bills and certificates6 259 265 57 69 59 74 77 95 177 345 18 Other negotiable and readily transferable instruments7 1,590 1,497 641 711 463 734 693 305 731 1,179 19 Other 0 0 0 15 52 0 16 35 10 0 20 Official institutions9 103,569 120,667 135,165 135,191 132,833 128,895 135,256 129,770 124,182 125,194 21 Banks' own liabilities 25,427 28,703 27,033 32,013 29,321 27,800 33,067 31,738 31,669 32,476 22 Demand deposits 2,267 1,757 1,915 1,627 1,792 1,605 1,783 1,761 1,801 1,834 23 Time deposits" 10,497 12,843 9,686 13,428 12,661 11,006 12,559 11,144 9,920 8,873 24 Other3 12,663 14,103 15,432 16,959 14,867 15,189 18,725 18,833 19,949 21,769 25 Banks' custody liabilities5 78,142 91,965 108,132 103,178 103,512 101,095 102,189 98,032 92,513 92,718 26 U.S. Treasury bills and certificates6 75,650 88,829 103,722 98,457 98,192 95,478 96,109 91,798 8877,,119900 8877,,663344 27 Other negotiable and readily transferable instruments7 2,347 2,990 4,130 4,598 5,076 5,466 5,875 6,049 5,080 4,821 28 Other 145 146 280 124 244 152 205 185 244 263 29 Banks10 351,745 414,280 458,248 435,464 452,338 469,562 453,662 454,167 451,073 442,513 30 Banks' own liabilities 310,166 371,665 408,576 384,974 399,833 417,332 401,754 399,831 395,627 386,227 31 Unaffiliated foreign banks 101,066 124,030 120,597 110,350 116,152 128,364 121,455 123,001 120,469 120,319 32 Demand deposits 10,303 10,898 9,980 9,459 9,584 11,012 10,559 11,162 9,696 10,044 33 Time deposits 64,232 79,717 80,303 71,838 76,679 84,112 80,826 78,903 77,314 75,595 34 Other3 26,531 33,415 30,314 29,053 29,889 33,240 30,070 32,936 33,459 34,680 35 Own foreign offices4 209,100 247,635 287,979 274,625 283,682 288,968 280,299 276,830 275,158 265,908 36 Banks' custody liabilities5 41,579 42,615 49,671 50,489 52,505 52,231 51,908 54,337 55,446 56,286 37 U.S. Treasury bills and certificates6 9,984 9,134 7,602 7,819 7,491 7,310 6,921 7,114 77,,775599 8,173 38 Other negotiable and readily transferable instruments7 5,165 5,392 5,666 5,870 5,894 5,254 5,051 5,686 5,314 5,552 39 Other 26,431 28,089 36,403 36,800 39,120 39,667 39,936 41,536 42,374 42,561 40 Other foreigners 79,875 79,463 87,313 86,896 89,200 88,679 89,997 90,359 92,718 90,986 41 Banks' own liabilities 66,934 67,000 75,438 74,132 75,724 75,518 78,144 77,793 80,446 79,235 42 Demand deposits 11,019 9,604 9,928 9,450 10,282 9,777 9,828 8,921 9,801 9,186 43 Time deposits" 54,097 54,277 61,022 59,651 60,671 61,475 62,250 63,521 64,396 63,785 44 Other3 1,818 3,119 4,487 5,032 4,771 4,265 6,066 5,351 6,249 6,265 45 Banks' custody liabilities5 12,941 12,463 11,876 12,764 13,476 13,161 11,853 12,567 12,271 11,750 46 U.S. Treasury bills and certificates6 4,506 3,515 3,595 4,797 5,250 5,188 3,720 3,718 33,,667799 33,,661122 47 Other negotiable and readily transferable instruments7 6,315 6,898 5,929 5,584 5,638 5,503 5,658 6,436 5,953 5,341 48 Other 2,120 2,050 2,351 2,382 2,589 2,471 2,474 2,412 2,639 2,797 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,496 7,314 6,366 6,286 6,064 5,809 5,554 5,625 5,337 5,261 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 Area and country 1986 1987 Feb. Apr. May 1 Total 540,996 618,874 683,950 660,256 677,624 690,900 683,055 6n,nr 671,559 2 Foreign countries 535,189 614,411 680,726 657,551 674,371 687,136 678,914 674,296' 667,973 3 Europe 180,556 234,641 235,979 223,869 228,393 231,905 230,794 227,990^ 225,690 2 2 2 2 1 1 1 1 1 1 1 1 1 1 4 5 6 0 1 7 8 2 3 9 0 1 2 3 4 5 6 7 8 9 A O T O F Y D B U G I N S U N P S S F G t i w o p w u r u a e t u t e r n . e o e n a h h S r a e l r l s n g t i r r i e l y t g n k e h e i e t t t . m w a o m u d n e r z r S r i c c e e n s i g d e u e e a a e y a a . r d l W E n R a y r m n l a r l K l a k a y v a e - n s i i n L s a t n d d t e u s g e r x r d n n e o m m E E u b u r o r o u o p r p g e e 2 1 3 8 2 1 0 3 6 5 2 5 2 5 0 1 , , , , , , , , , , 5 3 7 4 3 6 8 7 4 4 5 8 1 6 7 7 6 7 8 3 2 2 3 0 6 0 7 5 8 8 6 8 3 3 0 9 8 8 0 4 6 9 4 7 2 0 5 4 0 2 2 1 5 0 2 9 0 4 0 1 3 2 1 1 3 9 5 2 9 9 7 6 1 2 1 . , , , , , , , , , , 7 0 3 6 7 8 8 7 5 3 0 0 7 3 8 7 3 9 6 6 1 3 4 2 9 5 8 6 0 7 0 6 1 7 2 7 3 2 8 6 4 5 7 1 8 2 2 2 3 3 1 0 0 7 2 9 2 0 9 1 2 3 1 1 1 5 4 4 2 5 8 6 5 0 4 1 1 1 1 , , , , , , , , , , , , , , 3 5 7 1 1 0 4 9 7 6 5 2 9 5 1 5 0 6 2 1 1 9 2 6 8 8 2 7 9 2 0 5 8 8 5 0 1 7 7 3 6 8 8 2 0 3 6 7 4 9 2 5 4 9 9 3 2 4 2 8 1 3 2 1 1 1 2 5 2 8 5 5 1 0 0 1 1 1 1 , , , , , , , , , , , , , 5 2 2 9 7 7 4 5 8 9 3 8 3 8 9 6 1 2 9 1 1 6 4 9 0 0 8 1 9 5 7 7 3 7 3 9 2 9 1 5 9 4 8 1 6 2 9 2 4 0 8 5 3 0 9 7 9 9 9 5 1 2 3 1 1 1 9 1 4 2 5 6 5 3 0 1 1 1 1 1 , , , , , , , , , , , , , , 9 6 0 2 4 4 4 0 1 2 5 2 0 5 8 3 3 9 7 1 2 5 1 1 6 3 5 8 4 0 7 7 6 6 6 1 1 7 3 0 9 9 1 9 0 4 8 2 6 8 4 3 0 3 7 3 9 7 3 8 1 2 2 1 1 1 9 9 5 4 6 5 5 0 3 1 1 1 1 1 , , , , , , , , , , , , , , 8 3 8 6 3 7 9 4 4 5 5 0 6 5 8 6 4 4 7 1 1 1 2 2 3 0 4 8 0 4 1 2 7 2 3 3 3 1 6 0 5 6 4 5 0 0 0 0 2 7 4 7 7 3 9 1 6 6 0 2 1 2 2 1 1 1 1 9 5 5 6 5 1 1 0 2 1 1 1 1 1 , , , , , , , , , , , , , , 2 6 6 5 7 4 1 9 3 8 4 9 6 9 7 0 9 6 7 4 3 1 9 9 1 1 6 6 5 1 2 9 8 5 6 0 3 2 9 9 4 9 5 2 1 5 4 5 8 5 4 7 3 1 8 8 0 7 1 1 2 2 1 1 1 4 8 5 5 8 7 2 1 2 1 1 1 1 1 , , , , , , , , , , , , , , 1 8 4 8 8 4 9 7 4 4 7 6 4 4 5 1 3 5 1 4 9 1 8 8 7 8 8 3 4 7 7 9 7 8 3 2 4 9 5 ^ 9 9 2 7 8 5 5 2 2 9 2 7 6 0 3 9 5 8 2 r r r ' ' ' 1 2 2 1 0 1 8 8 4 3 9 5 4 7 1 1 1 3 1 1 , , , , , , , , , , , , , , 8 8 6 8 1 0 4 5 5 4 0 1 0 9 1 7 4 4 8 1 5 7 3 6 5 8 5 7 8 5 8 5 3 5 3 8 7 8 8 6 6 5 4 4 5 5 0 9 9 1 0 8 1 3 7 7 1 9 3 4 24 Canada 26,345 30,095 21,040 19,277 20,732 25,694 23,024 18,332 17,492 25 Latin America and Caribbean 210,318 220,372 266,295 257,809 263,344 264,598 266,440 270,358' 266,400 26 Argentina 4,757 5,006 7,804 7,629 6,836 6,415 6,280 6,459' 6,320 27 Bahamas 73,619 74.767 86,606 82,009 83,455 85,586 86,053 90,979' 82,054 28 Bermuda 2,922 2.344 2,621 2,381 2,545 2,513 2,377 2,451 2,406 29 Brazil 4,325 4,005 5,304 4,675 4,829 4,925 5,554 5,302 5,026 30 British West Indies 72,263 81,494 109,335 107,026 110,989 110,809 111,968 lll,27(r 116,585 31 Chile 2,054 2,210 2,936 2,969 2,975 3,063 2,933 2,988 2,733 32 Colombia 4,285 4,204 4,374 4,317 4,470 4,166 4,173 4,033 4,127 33 Cuba 7 12 10 10 10 10 10 15 10 34 Ecuador 1,236 1,082 1,379 1,365 1,403 1,422 1,376 1,285 1,351 35 Guatemala 1,123 1,082 1,195 1,236 1,259 1,271 1,272 1,232 1,251 36 Jamaica 136 160 269 180 170 223 222 188 294 3 4 4 4 4 3 3 8 0 1 2 3 7 9 N O V U M P P e a e t e r e h r n u t n u x h e a g e i r e m u z c r o u a a l y e a l n a d s Antilles 1 1 4 6 5 1 1 3 0 , , , , , , , 8 9 1 7 1 5 1 8 7 1 4 7 3 6 6 0 9 5 1 7 3 1 4 7 9 5 1 4 1 , , , , , , , 9 4 2 0 2 4 5 7 1 3 4 7 8 8 5 4 4 8 5 0 2 1 4 5 6 9 1 5 1 , , , , , , , 3 8 4 1 6 1 8 5 6 2 4 0 7 9 3 8 0 6 6 1 8 1 5 4 5 2 9 1 5 , , , , , , , 2 8 7 0 1 7 2 1 8 0 6 5 1 7 1 4 6 3 9 6 3 1 5 4 2 9 5 1 4 , , , , , , , 1 5 4 9 6 7 8 4 3 9 9 4 6 2 2 2 7 7 1 7 8 1 4 5 2 9 6 4 1 , , , . , , , 3 6 0 4 2 6 7 8 6 7 8 4 2 0 8 6 6 9 3 5 7 1 5 4 2 9 6 4 1 , , , , , , , 3 5 2 2 7 2 7 5 6 2 6 6 7 6 5 5 8 3 8 8 3 1 6 4 2 9 6 1 3 , , , , , , , 4 3 7 9 0 4 1 5 4 2 8 7 3 4 4 4 4 8 2 5 c ' ' 1 4 5 6 2 9 4 1 . , , , , , , 2 9 3 4 4 1 7 7 0 1 2 2 2 6 8 2 6 9 9 6 1 44 Asia 108,831 121,288 147,246 146,594 151,237 154,900 148,724 147,246' 148,291 China 45 Mainland 1,476 1,162 1,892 1,566 1,602 1,588 1,809 1,652 1,432 46 Taiwan 18,902 21,503 26,058 26,178 26,001 26,143 28,265 26,923 27,025 47 Hong Kong 9,393 10,180 11,727 10,891 11,387 10,761 11,422 12,207 12,134 48 India 674 582 696 689 838 900 1,787 1,009 812 49 Indonesia 1,547 1,404 1,189 1,189 1,198 1,611 1,168 1,306' 1,232 50 Israel 1,892 1,292 1.471 1,217 1,366 1,156 973 1,103 1,088 5 5 5 5 5 5 4 5 2 6 1 3 T J M P O K a h h t o i p h i a d r l a i e e d i n l r p a a l p e n - i d n E e a s s t oil-exporting countries3 .. 4 1 1 7 2 1 1 1 1 , , , , , , 3 4 0 1 1 8 5 1 5 1 6 4 2 0 8 9 6 1 5 1 1 4 3 2 1 1 1 , , , , . , 3 9 7 0 3 6 2 8 8 4 8 3 2 8 5 5 8 7 7 1 1 2 2 3 3 1 1 , , , , , , 0 5 9 2 2 1 6 8 4 2 3 6 0 9 1 5 6 3 7 1 1 5 2 2 2 1 , , , , , 4 3 4 2 3 9 2 5 3 9 7 7 6 4 7 8 3 6 7 1 1 2 7 2 3 1 1 , , , , , , 3 9 4 5 6 0 7 3 0 0 1 1 2 5 7 2 5 4 8 1 1 3 2 2 2 1 , , , , , 0 0 8 7 9 1 2 2 2 3 7 5 9 0 7 7 7 1 7 1 1 2 3 2 3 1 , , , , , 0 7 0 1 3 9 9 1 6 2 2 7 8 5 5 3 6 3 7 1 1 3 1 3 3 0 , , , , 9 1 1 5 8 ,4 6 9 6 0 1 ^ 2 1 5 5 6 ' ' ' 7 1 1 1 3 3 4 1 , , , , , 6 1 0 5 9 2 1 1 4 3 7 8 2 9 7 2 4 4 57 Africa 4,021 3,945 3,991 3,690 3,793 3,717 3,665 3,807 3,904 58 Egypt 706 1,151 913 771 819 756 721 702 748 59 Morocco 92 194 68 90 69 60 82 68 67 60 South Africa 270 202 437 250 212 226 256 324 188 61 Zaire 74 67 85 74 75 77 73 92 98 62 Oil-exporting countries 1,519 1,014 1,017 1,024 1,121 1,062 1,017 879 1,100 63 Other 1,360 1,316 1.472 1,480 1,496 1,536 1,516 1,742 1,702 64 Other countries 5,118 4,070 6,175 6,312 6,872 6,322 6,267 6,563' 6,196 65 Australia 4,196 3,327 5,303 5,485 6,037 5.490 5,471 5,700*" 5.279 66 All other 922 744 872 827 836 832 796 863 916 67 Nonmonetary international and regional organizations 5,807 4,464 3,224 2,704 3,252 3,764 4,141 3,415' 3,586 68 International 4,620 2,830 2,503 1,725 2,106 2,546 2,682 2,456 2,799 69 Latin American regional 1,033 1,272 589 747 732 995 981 564 613 70 Other regional6 154 362 133 232 414 223 477 395' 175 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 • November 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 1989 AArreeaa aanndd ccoouunnttrryy 11998866 11998877 11998888 Jan. Feb. Mar. Apr. May June July 1 Total 444,745 459,877 491,083 481,711 493,175 503,875 494,869 490,753' 489,411 481,061 2 Foreign countries 441,724 456,472 489,012 479,132 491,270 501,836 493,173 487,OSS' 486,397 477,480 3 Europe 107,823 102,348 117,053 107,477 113,814 116,279 111,156 113,004' 112,182 106,619 4 Austria 728 793 485 544 646 809 805 764 809 865 5 Belgium-Luxembourg 7,498 9,397 8,517 8,301 7,871 7,834 8,102 8,435 7,769 7,630 6 Denmark 688 717 480 410 790 548 770 470 774 578 7 Finland 987 1,010 1,065 911 1,114 909 1,214 1,280 1,175 1,473 8 France 11,356 13,548 13,243 13,315 14,920 15,729 16,510 16,092' 15,574 15,871 9 Germany 1,816 2,039 2,327 2,398 1,695 3,110 3,529 3,959 3,695 3,415 in Greece 648 462 433 448 517 586 561 595 574 598 n11 N Ita e l t y h erlands 3 9 , , 2 0 9 4 6 3 2 7 , , 6 4 1 6 9 0 2 7, , 9 5 4 4 6 7 2 5 , , 5 5 1 2 4 6 2 5 , , 4 5 7 81 5 5 2 , , 8 8 6 0 6 8 4 2 , , 8 7 0 3 3 5 3 5 , , 1 6 8 2 3 7 2 6 , , 0 8 2 1 5 1 6 1 , , 0 9 1 1 6 0 13 Norway 672 934 455 472 601 432 551 567 667 827 14 Portugal 739 477 374 339 331 367 281 371 328 283 15 Spain 1,492 1,853 1,823 2,182 2,153 2,133 2,624 2,209 2,190 2,082 16 Sweden 1,964 2,254 1,977 2,619 2,622 2,613 2,164 2,158 1,946 2,053 17 Switzerland 3,352 2,718 3,895 3,510 3,780 3,822 4,540 3,975 5,485 4,111 18 Turkey 1,543 1,680 1,233 1,152 1,108 1,039 1,005 910 886 695 19 United Kingdom 58,335 50,823 65,702 58,065 62,469 62,877 56,057 58,105 56,904 53,765 20 Yugoslavia 1,835 1,700 1,390 1,371 1,348 1,455 1,369 1,366 1,359 1,405 21 Other Western Europe2 539 619 1,152 1,275 1,560 1,262 1,415 966 1,161 975 22 U.S.S.R 345 389 1,255 1,286 1,389 1,298 1,346 1,155 1,212 1,240 23 Other Eastern Europe 948 852 754 838 845 780 775 820 838 828 24 Canada 21,006 25,368 18,889 16,733 18,079 19,042 19,150 16,072 16,089 14,494 75 Latin America and Caribbean 208,825 214,789 214,074 210,439 210,538 220,767 219,894 217,962' 219,104 217,137 26 Argentina 12,091 11,996 11,826 11,880 11,802 11,616 11,516 11,381 10,840 10,724 77 Bahamas 59,342 64,587 67,006 68,836 69,607 72,804 75,665 70,552 66,570 70,488 78 Bermuda 418 471 483 475 535 707 361 449 432 463 29 Brazil 25,716 25,897 25,735 25,835 25,369 25,615 25,944 25,785 25,672 25,768 30 British West Indies 46,284 50,042 55,640 50,542 50,542 57,570 54,382 57,960' 64,715 59,356 31 Chile 6,558 6,308 5,217 5,156 5,141 5,335 5,224 5,266 4,841 4,770 32 Colombia 2,821 2,740 2,944 2,867 2,813 2,746 2,661 2,600 2,581 2,524 33 Cuba 0 1 1 1 1 1 2 1 1 9 34 Ecuador 2,439 2,286 2,075 2,048 2,026 2,032 2,025 1,944 1,894 1,932 35 Guatemala4 140 144 198 185 188 199 210 207 200 188 36 Jamaica4 198 188 212 214 202 251 266 265 286 270 37 Mexico 30,698 29,532 24,636 24,445 24,387 24,187 24,077 24,038' 23,645 23,306 38 Netherlands Antilles 1,041 980 1,312 1,222 1,150 1,005 1,009 999r 1,183 1,167 39 Panama 5,436 4,744 2,535 2,535 2,535 2,460 2,425 2,475 2,437 2,322 40 Peru 1,661 1,329 1,013 11,,001111 952 947 947 938 874 867 41 Uruguay 940 963 910 888800 856 875 876 832 896 854 47 Venezuela 11,108 10,843 10,733 10,748 10,957 10,761 10,635 10,600 10,398 10,234 43 Other Latin America and Caribbean 1,936 1,738 1,596 1,560 1,475 1,658 1,668 1,670 1,638 1,893 44 Asia 96,126 106,096 130,867 135,839 140,041 137,055 113344,,447777 113311,,557788'' 113300,,227777 130,729 China Mainland 787 968 762 830 881 993 816 952 890 644 46 Taiwan 2,681 4,592 4,184 3,902 3,960 4,179 3,952 3,715 4,033 3,963 47 Hong Kong 8,307 8,218 10,136 8,727 8,004 7,884 8,293 8,855 8,547 8,091 48 India 321 510 560 645 628 563 425 411 537 472 49 Indonesia 723 580 674 669 735 649 726 690' 671 646 50 Israel 1,634 1,363 1,137 1,096 1,043 1,050 1,052 1,045 1,026 961 51 Japan 59,674 68,658 90,161 99,056 104,831 101,471 97,703 93,447 91,080 91,576 57 Korea 7,182 5,148 5,219 4,961 4,891 5,183 5,198 5,338 5,386 5,779 53 Philippines 2,217 2,071 1,876 1,847 1,900 1,913 1,839 1,810 1,763 1,610 54 Thailand 578 496 850 887 931 986 1,018 975 1,058 1,060 55 Middle East oil-exporting countries 4,122 4,858 6,182 5,371 4,681 5,409 5,237 5,522 6,556 6,291 56 Other Asia 7,901 8,635 9,126 7,847 7,556 6,776 8,217 8,818' 8,731 9,636 57 Africa 4,650 4,742 5,718 5,924 6,072 5,973 6,087 6,084 6,075 6,059 58 Egypt 567 521 507 495 567 543 541 541 534 577 59 Morocco 598 542 511 524 532 541 532 538 531 518 60 South Africa 1,550 1,507 1,681 1,688 1,718 1,702 1,742 1,753 1,746 1,707 61 Zaire 28 15 17 16 16 17 19 19 17 17 62 Oil-exporting countries6 694 1,003 1,523 1,534 1,522 1,481 1,474 1,504 1,503 1,576 63 Other 1,213 1,153 1,479 1,666 1,717 1,690 1,778 1,729 1,744 1,664 64 Other countries 3,294 3,129 2,410 2,720 2,726 2,720 2,409 2,359 2,670 2,442 65 Australia 1,949 2,100 1,517 1,711 1,686 1,685 1,505 1,167 1,307 1,461 66 All other 1,345 1,029 894 1,009 1,040 1,034 905 1,192 1,363 981 67 Nonmonetary international and regional organizations7 3,021 3,404 2,071 2,579 1,905 2,039 1,696 3,695 3,014 3,581 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 1989 TTyyppee ooff ccllaaiimm 11998866 11998877 11998888 Jan. Feb. Mar. Apr. Mayr June July'' 444444477777778888888,,,,,,,666666655555550000000 444444499999997777777,,,,,,,666666633333335555555 555555533333338888888,,,,,,,666666600000007777777 555555555555557777777,,,,,,,000000055555554444444 555555533333338888888,,,,,,,999999944444442222222 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444444444444444444,,,,,,,777777744444445555555 444444455555559999999,,,,,,,888888877777777777777 444444499999991111111,,,,,,,000000088888883333333 481,711 493,175 555555500000003333333,,,,,,,888888877777775555555 494,869 490,753 444444488888889999999,,,,,,,444444411111111111111 481,061 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666664444444,,,,,,,000000099999995555555 66666664444444,,,,,,,666666600000005555555 66666662222222,,,,,,,444444433333338888888 63,974 63,245 66666662222222,,,,,,,666666699999996666666 62,768 63,702 66666662222222,,,,,,,111111111111117777777 62,136 44 OOwwnn ffoorreeiiggnn ooffffiicceess22 222222211111111111111,,,,,,,555555533333333333333 222222222222224444444,,,,,,,777777722222227777777 222222255555557777777,,,,,,,333333344444445555555 256,848 262,810 222222277777771111111,,,,,,,999999911111115555555 259,664 257,300 222222255555557777777,,,,,,,888888866666667777777 248,398 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222222222222,,,,,,,999999944444446666666 111111122222227777777,,,,,,,666666600000009999999 111111122222229999999,,,,,,,444444411111113333333 119,040 124,495 111111133333330000000,,,,,,,000000077777775555555 131,228 130,488 111111122222228888888,,,,,,,000000099999998888888 129,779 66 DDeeppoossiittss 55555557777777,,,,,,,444444488888884444444 66666660000000,,,,,,,666666688888887777777 66666665555555,,,,,,,888888811111119999999 58,389 62,616 66666666666666,,,,,,,555555555555553333333 69,445 67,407 66666668888888,,,,,,,222222244444442222222 68,471 77 OOtthheerr 66666665555555,,,,,,,444444466666662222222 66666666666666,,,,,,,999999922222222222222 66666663333333,,,,,,,555555599999994444444 60,650 61,879 66666663333333,,,,,,,555555522222222222222 61,783 63,081 55555559999999,,,,,,,888888855555556666666 61,308 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444446666666,,,,,,,111111177777771111111 44444442222222,,,,,,,999999933333336666666 44444441111111,,,,,,,888888888888886666666 41,850 42,626 33333339999999,,,,,,,111111188888889999999 41,209 39,263 44444441111111,,,,,,,333333322222229999999 40,748 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 33333333333333,,,,,,,999999900000005555555 33333337777777,,,,,,,777777755555558888888 44444447777777,,,,,,,555555522222224444444 55555553333333,,,,,,,111111177777778888888 44444449999999,,,,,,,555555533333331111111 4444444,,,,,,,444444411111113333333 3333333,,,,,,,666666699999992222222 8888888,,,,,,,222222288888889999999 11111112222222,,,,,,,000000088888884444444 11111111111111,,,,,,,111111155555553333333 11 Negotiable and readily transferable 22222224444444,,,,,,,000000044444444444444 22222226666666,,,,,,,666666699999996666666 22222225555555,,,,,,,777777700000000000000 22222224444444,,,,,,,999999966666660000000 22222222222222,,,,,,,000000011111117777777 12 Outstanding collections and other 5555555,,,,,,,444444444444448888888 7777777,,,,,,,333333377777770000000 11111113333333,,,,,,,555555533333335555555 11111116666666,,,,,,,111111133333334444444 11111116666666,,,,,,,333333366666662222222 13 MEMO: Customer liability on 22222225555555,,,,,,,777777700000006666666 22222223333333,,,,,,,111111100000007777777 11111119999999,,,,,,,555555555555556666666 11111117777777,,,,,,,111111166666661111111 11111116666666,,,,,,,999999977777773333333 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States .... 43,984 40,761'' 43,360 46,294 47,775 47,237 47,918 49,587 n.a. 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" filed with bank 5. Includes demand and time deposits and negotiable and nonnegotiable regulatory agencies. Agencies, branches, and majority-owned subsidiaries of certificates of deposit denominated in U.S. dollars issued by banks abroad. For foreign banks: principally amounts due from head office or parent foreign bank, description of changes in data reported by nonbanks, see July 1979 BULLETIN, 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 1989 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998855 11998866 11998877 June Sept. Dec. Mar. 1 227,903 232,295 235,130 228,219 230,401 233,152 231,325 By borrower ? Maturity of 1 year or less" 160,824 160,555 163,997 163,762 167,956 172,571 168,312 3 Foreign public borrowers 26,302 24,842 25,889 27,551 29,389 26,581 24,134 4 All other foreigners 134,522 135,714 138,108 136,211 138,567 145,990 144,178 5 Maturity over 1 year 67,078 71,740 71,133 64,456 62,444 60,581 63,013 6 Foreign public borrowers 34,512 39,103 38,625 35,792 35,156 35,067 37,958 7 All other foreigners 32,567 32,637 32,507 28,664 27,288 25,514 25,056 By area Maturity of 1 year or less- 8 56,585 61,784 59,027 55,971 54,283 56,037 5577,,994400 9 6,401 5,895 5,680 6,664 6,410 6,283 5,115 10 Latin America and Caribbean 63,328 56,271 56,535 56,219 55,552 57,867 53,184 11 27,966 29,457 35,919 38,902 42,375 46,160 45,632 1? 3,753 2,882 2,833 2,914 3,120 3,336 3,610 N All other3 2,791 4,267 4,003 3,092 6,216 2,888 2,831 Maturity of over 1 year2 14 7,634 6,737 6,696 5,315 55,,330066 4,682 44,,447711 15 1,805 1,925 2,661 2,333 2,051 1,922 2,303 16 Latin America and Caribbean 50,674 56,719 53,817 49,755 48,274 47,572 49,778 17 4,502 4,043 3,830 3,622 3,933 3,603 3,689 18 1,538 1,539 1,747 2.433 2,257 2,301 2,293 19 All other3 926 777 2,381 998 625 501 480 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 • November 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 1987 1988 1989 AArreeaa oorr ccoouunnttrryy 11998855 11998866 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar. 1 Total 385.4 385.1 395.4 384.6 387.7 381.4 371.9 351.9 355.1 350.0 352.1 2 G-10 countries and Switzerland 146.0 156.6 162.7 158.1 155.2 160.0 157.7 151.7 149.9 154.7 150.1 3 Belgium-Luxembourg 9.2 8.3 9.1 8.3 8.2 10.1 9.4 9.2 9.6 9.0 8.6 4 France 12.1 13.7 13.3 12.5 13.7 13.8 11.8 11.0 10.4 10.7 11.2 5 Germany 10.5 11.6 12.7 11.2 10.5 12.6 11.8 10.6 8.8 9.9 10.1 6 Italy 9.6 9.0 8.7 7.5 6.6 7.3 7.4 6.2 5.4 6.6 5.1 7 Netherlands 3.7 4.6 4.4 7.3 4.8 4.1 3.3 3.3 3.0 2.8 2.9 8 Sweden 2.7 2.4 3.0 2.4 2.6 2.1 2.2 1.9 2.0 2.0 2.4 9 Switzerland 4.4 5.8 5.8 5.7 5.4 5.6 5.1 5.6 5.2 5.7 5.2 10 United Kingdom 63.0 71.0 73.7 72.0 72.1 69.1 72.1 70.6 68.0 66.7 66.4 11 Canada 6.8 5.3 5.3 4.7 4.7 5.5 4.9 5.4 5.2 5.5 4.6 12 23.9 24.9 26.9 26.3 26.5 29.8 29.9 27.9 32.4 35.9 33.6 13 Other developed countries 29.9 25.7 25.7 25.2 25.9 26.2 26.3 23.8 22.8 20.9 20.8 14 Austria 1.5 1.7 1.9 1.8 1.9 1.9 1.6 1.6 1.6 1.6 1.4 15 Denmark 2.3 1.7 1.7 1.5 1.6 1.7 1.4 1.0 1.1 1.0 1.0 16 Finland 1.6 1.4 1.4 1.4 1.4 1.3 1.1 1.2 1.3 1.2 1.0 17 Greece 2.6 2.3 2.1 2.0 1.9 2.0 2.3 2.2 2.1 1.9 2.2 18 Norway 2.9 2.4 2.2 2.1 2.0 2.3 2.0 2.0 2.0 1.8 1.5 19 Portugal 1.2 .8 .9 .8 .8 .5 .4 .4 .4 .5 .5 20 Spain 5.8 5.8 6.3 6.1 7.4 8.0 9.0 7.2 6.3 6.2 6.3 21 Turkey 1.8 1.8 1.7 1.7 1.5 1.6 1.6 1.5 1.3 1.3 1.0 22 Other Western Europe 2.0 1.4 1.4 1.5 1.6 1.6 2.0 1.7 1.9 1.3 1.4 23 South Africa 3.2 3.0 3.0 3.0 2.9 2.9 2.8 2.8 2.7 2.4 2.2 24 Australia 5.0 3.5 3.2 3.1 2.9 2.4 2.1 2.2 1.8 1.8 2.4 25 OPEC countries3 21.3 19.3 20.0 18.8 19.0 17.1 17.4 16.7 17.8 16.5 16.3 26 Ecuador 2.1 2.2 2.1 2.1 2.1 1.9 1.9 1.8 1.8 1.7 1.7 27 Venezuela 8.9 8.6 8.5 8.4 8.3 8.1 8.0 8.0 7.9 7.9 8.0 28 Indonesia 3.0 2.5 2.4 2.2 2.0 1.9 1.9 1.9 1.9 1.8 1.8 29 Middle East countries 5.3 4.3 5.4 4.4 5.0 3.6 3.8 3.4 4.5 3.3 3.2 30 African countries 2.0 1.7 1.6 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.6 31 Non-OPEC developing countries 104.2 99.1 100.7 100.4 97.7 97.6 94.4 91.4 87.1 85.3 85.6 Latin America 32 Argentina 8.8 9.5 9.5 9.5 9.3 9.4 9.5 9.4 9.2 8.9 8.4 33 Brazil 25.4 25.2 26.2 25.1 25.1 24.7 23.9 23.7 22.4 22.5 22.7 34 Chile 6.9 7.1 7.3 7.2 7.0 6.9 6.6 6.4 6.2 5.5 5.6 35 Colombia 2.6 2.1 2.0 1.9 1.9 2.0 1.9 2.1 2.1 2.0 1.9 36 Mexico 23.9 23.8 24.1 25.3 24.8 23.7 22.5 21.1 20.6 19.0 18.2 37 1.8 1.4 1.4 1.3 1.2 1.1 1.1 .9 .8 .8 .7 38 Other Latin America 3.4 3.1 3.0 2.9 2.8 2.7 2.8 2.6 2.5 2.6 2.8 Asia China 39 Mainland .5 .4 .9 .6 .3 .3 .4 .3 .2 .3 .5 40 Taiwan 4.5 4.9 5.5 6.6 6.0 8.2 6.1 4.9 3.2 3.7 4.9 41 India 1.2 1.2 1.8 1.7 1.9 1.9 2.1 2.3 2.0 2.1 2.6 42 1.6 1.5 1.4 1.3 1.3 1.0 1.0 1.0 1.0 1.2 .9 43 Korea (South) 9.2 6.6 6.2 5.6 4.9 4.9 5.6 5.9 6.0 6.1 6.2 44 Malaysia 2.4 2.1 1.9 1.7 1.6 1.5 1.5 1.5 1.6 1.6 1.7 45 Philippines 5.7 5.4 5.4 5.4 5.4 5.1 5.1 4.9 4.7 4.5 4.3 46 Thailand 1.4 .9 .9 .8 .7 .7 1.0 1.1 1.2 1.1 1.0 47 Other Asia 1.0 .7 .6 .7 .7 .7 .7 .8 .8 .9 .8 Africa 48 Egypt 1.0 .7 .6 .6 .6 .5 .5 .6 .5 .4 .5 49 Morocco .9 .9 .9 .9 .8 .9 .9 .9 .8 .9 .9 50 Zaire .1 .1 .1 .1 .1 .0 .1 .1 .0 .0 .0 51 Other Africa4 1.9 1.6 1.4 1.3 1.3 1.3 1.2 1.2 1.2 1.1 1.1 52 Eastern Europe 4.1 3.2 3.0 3.3 3.3 3.0 2.9 3.1 3.0 3.6 3.4 53 U.S.S.R .1 .1 .1 .3 .5 .4 .3 .4 .4 .7 .7 54 Yugoslavia 2.2 1.7 1.6 1.7 1.7 1.6 1.7 1.7 1.7 1.7 1.7 55 Other 1.8 1.4 1.3 1.3 1.2 1.0 .9 1.0 1.0 1.1 1.1 56 Offshore banking centers 62.9 61.3 63.1 60.7 64.3 54.3 51.7 43.0 47.4 45.8 50.9 57 Bahamas 21.2 22.0 23.9 19.9 25.5 17.1 15.7 8.6 12.6 10.8 15.6 58 Bermuda .7 .7 .8 .6 .6 .6 .8 1.0 .9 .8 1.0 59 Cayman Islands and other British West Indies 11.6 12.4 12.2 14.0 12.8 13.3 11.8 10.5 12.3 14.0 14.4 60 Netherlands Antilles 2.2 1.8 1.7 1.3 1.2 1.2 1.3 1.2 1.2 1.0 .9 61 Panama5 6.0 4.0 4.3 3.9 3.7 3.7 3.3 3.0 2.7 2.6 2.3 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 11.4 11.1 11.4 12.5 12.3 11.2 11.3 11.7 10.6 10.2 9.9 64 Singapore 9.8 9.2 8.6 8.3 8.1 7.0 7.4 6.8 7.0 6.2 6.7 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 16.9 19.8 20.1 18.1 22.3 23.2 21.5 22.3 26.7 22.6 24.5 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 1989 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998844 11998855 11998866 Dec. Mar. June Sept. Dec. Mar. 1 29,357 27,825 25,587 28,303 29,792 30,283 32,244 33,013 36,492 7 26,389 24,296 21,749 22,785 24,339 25,131 27,215 27,817 31,052 3 Payable in foreign currencies 2,968 3,529 3,838 5,518 5,453 5,152 5,029 5,196 5,441 By type 4 14,509 13,600 12,133 12,424 14,139 14,070 14,953 14,753 16,862 5 12,553 11,257 9,609 8,643 10,472 10,560 11,558 11,266 13,124 6 Payable in foreign currencies 1,955 2,343 2,524 3,781 3,667 3,510 3,395 3,487 3,739 7 14,849 14,225 13,454 15,878 15,653 16,213 17,291 18,260 19,630 8 7,005 6,685 6,450 7,305 6,454 6,768 6,479 6,247 6,760 9 Advance receipts and other liabilities 7,843 7,540 7,004 8,573 9,200 9,446 10,812 12,014 12,870 10 13,836 13,039 12,140 14,142 13,867 14,571 15,657 16,551 17,928 11 Payable in foreign currencies 1,0)3 1,186 1,314 1,737 1,786 1,642 1,635 1,709 1,702 By area or country 1? 6,728 7,700 7,917 8,320 9,377 9,215 10,353 9,559 1111,,885555 N Belgium-Luxembourg 471 349 270 213 251 279 336 287 317 14 995 857 661 364 390 353 354 249 231 IS Germany 489 376 368 551 553 503 488 548 372 16 590 861 542 884 1,008 880 1,014 897 951 17 569 610 646 558 691 638 734 1,163 888899 18 United Kingdom 3,297 4,305 5,140 5,557 6,301 6,390 7,257 6,268 88,,990011 19 Canada 863 839 399 360 394 403 421 638 603 ?0 Latin America and Caribbean 5,086 3,184 1,944 1,189 1,452 1,448 1,057 1,239 677 71 Bahamas 1,926 1,123 614 318 289 250 238 184 189 77 Bermuda 13 4 4 0 0 0 0 0 0 Brazil 35 29 32 25 0 0 0 0 0 74 British West Indies 2,103 1,843 1,146 778 1,099 1,154 812 645 471 367 15 22 13 15 26 2 1 15 26 Venezuela 137 3 0 0 2 0 0 0 0 ">1 1,777 1,815 1,805 2,452 2,836 2,928 3,116 3,313 3,722 78 Japan 1,209 1,198 1,398 2,042 2,375 2,331 2,462 2,563 2,950 29 Middle East oil-exporting countries 155 82 8 8 11 11 4 3 1 30 Africa 14 12 1 4 5 2 3 11 5 31 Oil-exporting countries 0 0 1 1 3 1 1 00 3 32 Mother4 41 50 67 100 75 74 3 2 2 33 4,001 4,074 4,446 5,505 5,619 5,722 6,687 77,,227744 77,,669922 34 Belgium-Luxembourg 48 62 101 132 154 147 205 169 133 35 438 453 352 426 414 408 438 455 569 36 622 607 715 908 810 791 1,185 1,684 1,344 37 245 364 424 423 457 508 647 590 667 38 257 379 385 559 527 482 486 410 451 39 United Kingdom 1,095 976 1,341 1,588 1,722 1,771 2,105 2,032 2,409 40 Canada 1,975 1,449 1,405 1,301 1,392 1,167 1,109 1,207 1,147 41 Latin America and Caribbean 1,871 1,088 924 864 980 1,035 997 999 1,186 4? 7 12 32 18 19 61 19 45 35 43 114 77 156 168 325 272 222 184 376 44 Brazil 124 58 61 46 59 54 58 91 100 4S British West Indies 32 44 49 19 14 28 30 31 29 46 586 430 217 189 164 233 177 179 197 47 636 212 216 162 122 140 204 176 179 48 5,285 6,046 5,080 6.565 5,883 6,279 6,627 6,899 7,430 49 1,256 1,799 2,042 2,578 2,508 2,659 2,763 3,087 3,046 50 Middle East oil-exporting countries 5 2,372 2,829 1,679 1,964 1,062 1,320 1,298 1,386 1,526 <>1 588 587 619 574 575 626 465 564 692 52 Oil-exporting countries3 233 238 197 135 139 115 1065 201 271 53 All other4 1,128 982 980 1,068 1,204 1,383 1,407 1,317 1,482 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 • November 1989 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1987 1988 1989 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998844 11998855 11998866 Dec. Mar. June Sept. Dec. Mar. 1 Total 29,901 28,876 36,265 30,942 31,067 37,633 37,415 31,882 31,175 2 Payable in dollars 27,304 26,574 33,867 28,469 28,993 35,593 34,984 29,622 28,978 3 Payable in foreign currencies 2,597 2,302 2,399 2,473 2,074 2,040 2,431 2,260 2,198 By type 4 Financial claims 19,254 18,891 26,273 20,341 20,304 26,265 26,327 20,233 19,472 5 Deposits 14,621 15,526 19,916 14,953 12,693 19,551 19,127 14,556 14,736 6 Payable in dollars 14,202 14,911 19,331 13,813 12,105 18,822 18,180 13,525 13,886 7 Payable in foreign currencies 420 615 585 1,140 588 730 947 1,031 850 8 Other financial claims 4,633 3,364 6,357 5,388 7,612 6,714 7,200 5,677 4,737 9 Payable in dollars 3,190 2,330 5,005 4,574 6,491 5,819 6,257 4,953 3,8% 10 Payable in foreign currencies 1,442 1,035 1,352 814 1,120 895 942 724 841 11 Commercial claims 10,646 9,986 9,992 10,600 10,763 11,367 11,088 11,649 11,703 12 Trade receivables 9,177 8,696 8,783 9,535 9,650 10,332 10,103 10,574 10,447 13 Advance payments and other claims 1,470 1,290 1,209 1,065 1,113 1,036 985 1,075 1,256 14 Payable in dollars 9,912 9,333 9,530 10,081 10,397 10,952 10,546 11,144 11,196 15 Payable in foreign currencies 735 652 462 519 366 415 542 505 507 By area or country Financial claims 16 Europe 5,762 6,929 10,744 9,523 9,812 11,514 10,534 9,867 9,037 17 Belgium-Luxembourg 15 10 41 7 15 16 49 10 7 18 France 126 184 138 332 308 181 278 224 230 19 Germany 224 223 116 103 95 169 123 138 173 20 Netherlands 66 161 151 351 335 336 359 345 384 21 Switzerland 66 74 185 65 54 105 84 215 173 22 United Kingdom 4,864 6,007 9,855 8,455 8,790 10,428 9,311 8,578 7,758 23 Canada 3,988 3,260 4,808 2,844 2,669 2,913 3,612 2,338 2,176 24 Latin America and Caribbean 8,216 7,846 9,291 6,994 6,451 10,842 11,130 6,951 7,188 25 Bahamas 3,306 2,698 2,628 1,994 2,329 4,176 4,074 1,781 2,168 26 Bermuda 6 6 6 7 43 87 188 19 25 27 Brazil 100 78 86 63 86 46 44 47 49 28 British West Indies 4,043 4,571 6,078 4,414 3,461 6,030 6,358 4,617 4,524 29 Mexico 215 180 174 172 154 147 133 151 117 30 Venezuela 125 48 21 19 35 28 27 22 26 31 Asia 961 731 1,317 883 1,296 878 930 801 929 32 Japan 353 475 999 605 1,133 646 737 603 685 33 Middle East oil-exporting countries 13 4 7 10 7 6 6 6 8 34 Africa 210 103 85 65 53 60 96 107 91 35 Oil-exporting countries3 85 29 28 7 7 10 9 10 9 36 All other4 117 21 28 33 24 58 26 169 51 Commercial claims 37 Europe 3,801 3,533 3,725 4,180 4,170 4,694 4,286 4,835 4,793 38 Belgium-Luxembourg 165 175 133 178 193 158 171 174 198 39 France 440 426 431 650 552 684 542 665 750 40 Germany 374 346 444 562 637 773 613 590 626 41 Netherlands 335 284 164 133 150 172 145 207 156 42 Switzerland 271 284 217 185 173 262 183 317 242 43 United Kingdom 1,063 898 999 1,073 1,059 1,095 1,172 1,181 1,208 44 Canada 1,021 1,023 934 936 1,166 937 977 970 1,096 45 Latin America and Caribbean 2,052 1,753 1,857 1,930 1,930 2,067 2,104 2,143 2,031 46 Bahamas 8 13 28 19 14 13 12 31 32 47 Bermuda 115 93 193 170 171 174 161 156 175 48 Brazil 214 206 234 226 209 232 234 296 275 49 British West Indies 7 6 39 26 24 25 22 20 21 50 Mexico 583 510 412 368 374 411 463 457 476 51 Venezuela 206 157 237 283 274 304 266 226 210 52 Asia 3,073 2,982 2,755 2,915 2,853 2,994 3,026 2,944 3,110 53 Japan 1,191 1,016 881 1,158 1,107 1,168 962 928 1,054 54 Middle East oil-exporting countries 668 638 563 450 408 446 437 441 421 55 Africa 470 437 500 401 419 425 425 434 386 56 Oil-exporting countries3 134 130 139 144 126 136 137 122 94 57 All other4 229 257 222 238 225 250 270 324 286 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 1989 Transactions, and area or country 1987 1988 Jan.- Jan. Feb. Mar. Apr. May June July ^ July U.S. corporate securities STOCKS 1 Foreign purchases 249,122 181,048 119,323 11,923 18,384 15,811 14,079 17,904' 24,223 232,849 183,039 112,537 11,789 18,495 15,442 14,235 16,846' 20,646 2 Foreign sales 16,272 -1,991 6,786 134 370 L,058R 3,577 3 Net purchases, or sales (—) ... 16,321 -1,816 7,029 167 -81 507 -150 1,060'' 3,595 4 Foreign countries 1,932 -3,353 931 -99 -126 71 182 -293r 417 5 Europe 905 -281 372 38 159 70 168 -123 -15 6 France -70 218 -285 30 59 59 16 -215 -155 7 Germany 892 -535 11 128 -64 4 -125 -76' 131 8 Netherlands -1,123 -2,242 -2,005 -345 -1,181 91 -141 -293' -114 9 Switzerland 631 -954 2,424 74 800 -107 288 494r 329 10 United Kingdom 1,048 1,087 124 320 -361 130 -66 -75 168 11 Canada 1,318 1,249 2,580 599 575 636 104 391' 167 12 Latin America and Caribbean . -1,360 -2,473 2,380 -100 265 220 -345 206 1,679 13 Middle East1 12,896 1,365 793 -603 -544 -536 -28 784 1,108 14 Other Asia 11,365 1,922 872 -563 -487 -458 -16 763 1,122 15 Japan 123 188 64 29 4 5 10 -1 16 16 Africa 365 121 157 21 106 -19 -7 50 40 17 Other countries 18 Nonmonetary international and regional organizations -176 -243 -137 -18 BONDS2 105,856 86,362 65,128 6,137 10,423 !,329 10,863 19 Foreign purchases 78,312 58,301 47,115 4,757 4,736 7,025 5,270 :,776 9,045 20 Foreign sales 27,544 28,062 18,013 1,380 4,874 3,398 4,466 1,818 21 Net purchases, or sales (-) ... 26,804 28,604 17,772 1,360 4,908 3,358 4,465 -570 1,695 22 Foreign countries 21,989 17,338 12,498 499 2,055 2,794 3,102 -55 2,132 23 Europe 194 143 378 107 41 -16 27 93 6 24 France 33 1,344 -48 15 38 148 135 -170 -162 25 Germany 269 1,514 512 30 -21 69 51 9 395 26 Netherlands 1,587 513 211 130 131 4 90 -114 -110 27 Switzerland 19,770 13,088 11,208 149 1,751 2,578 2,252 665 1,881 28 United Kingdom 1,296 711 583 180 129 213 115 59 -188 29 Canada 2,857 1,930 2,111 229 651 301 219 136 274 30 Latin America and Caribbean . -1,314 -178 -542 -128 160 87 3 -100 -611 31 Middle East1 2,021 8,900 2,909 552 1,893 -50 990 -615 83 32 Other Asia 1,622 7,686 1,472 392 1,567 -285 608 -722 -67 33 Japan 16 18 3 2 5 4 0 1 34 Africa -61 195 24 18 33 5 4 35 Other countries 36 Nonmonetary international and regional organizations 740 123 Foreign securities 37 Stocks, net purchases, or sales (-) 1,081 -1,901 -6,776 -891 -629 -147 -962 -1,332 -2,077 -748 38 Foreign purchases 95,458 75,203 55,581 6,856 8,070 9,477 6,724 7,748' 9,111 7,594 39 Foreign sales 94,377 77,104 62,357 7,748 8,698 9,624 7,687 9,070' 11,188 8,342 40 Bonds, net purchases, or sales (-) -7,946 -9,869 -4,635 -247 -484 -653 -176 -107' -1,508 -1,459 41 Foreign purchases 199,089 217,648 131,325 14,835 18,711 23,395 15,951 17,242' 21,016 20,174 42 Foreign sales 207,035 227,517 135,959 15,083 19,195 24,047 16,127 17,350' 22,524 21,634 43 Net purchases, or sales (-), of stocks and bonds ... -6,865 -11,770 -11,411 -1,139 -1,112 -800 -1,138 -1,430' -3,585 -2,207 44 Foreign countries -6,757 -12,251 -11,961 -1,115 -1,190 -992 -1,331 —1,633' -3,385 -2,314 45 Europe -12,101 -10,205 -11,789 -80 -797 -1,399 -1,734 -1,52c -3,876 -2,383 4 4 4 4 5 7 8 6 9 0 A A L C O a a f s t r h t i n a i i e n a c r d a A a c o m u e n r t i r c i a e s a nd Caribbean -4 9 - , , 8 0 2 8 0 7 9 2 8 0 2 9 8 9 -3 1 - , 5 , 7 - 3 9 5 6 9 8 8 4 7 9 6 7 -3 2 , , - 2 7 3 8 3 6 6 2 6 1 0 4 1 - - 8 3 1 7 7 3 6 2 8 6 9 8 -5 - 1 3 - 3 0 7 9 4 0 0 9 -5 - - 8 1 4 1 8 8 6 0 6 4 5 1 - 1 1 6 7 9 9 1 5 0 5 1 1 - - 1 5 - 7 9 8 5 0 1 o ( 5 0 3 T r ' ' ' 1 -6 , - 1 4 8 9 2 7 3 1 3 7 -6 - 8 7 9 1 1 6 2 9 7 2 51 Nonmonetary international and regional organizations -108 481 550 -23 78 192 193 203' -200 107 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 • November 1989 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1989 1989 Country or area 1987 1988 Jan.- July Jan. Feb. Mar. Apr. May June July Transactions, net purchases or sales (-) during period1 1 Estimated total2 25,587 48,884 22,485 2,828 8,783 8,640 29 7,043r -5,202 365 2 Foreign countries2 30,889 48,187 21,679 2,040 9,907 8,297 291 5,520r -5,319 944 3 Europe2 23,716 14,343 15,336 2,141 3,775 2,143 -1,814 44,,449988rr -1,305 5,899 4 Belgium-Luxembourg 653 923 208 9 127 -23 -87 8888 13 82 5 Germany2 13,330 -5,268 1,317 938 -31 -181 -693 -179 -1,106 2,569 A Netherlands -913 -356 -1,199 268 135 242 -643 -638 -674 111 7 Sweden 210 -323 760 -115 297 -508 398 -69 647 110 8 Switzerland 1,917 -1,074 2,794 214 438 1,768 440 -83 378 -361 9 United Kingdom 3,975 9,674 6,349 -348 1,533 1,207 -1,298 3,873r -133 1,515 10 Other Western Europe 4,563 10,776 5,128 1,175 1,277 -363 74 1,511 -423 1,877 11 Eastern Europe -19 -10 -21 0 0 0 -5 -5 -6 -5 12 Canada 4,526 3,761 -719 54 17 -55 114 157 -478 -528 13 Latin America and Caribbean -2,192 703 1,713 -104 525 113 -132 -179 643 849 14 Venezuela 150 -109 -37 -37 1 -53 -18 0 1 71 15 Other Latin America and Caribbean -1,142 1,120 7 -163 247 132 -231 -78 -14 113 16 Netherlands Antilles -1,200 -308 1,743 96 276 34 117 -101 656 665 17 4,488 27,606 5,345 626 5,955 5,659 1,743 1,734 -5,577 -4,793 18 Japan 868 21,752 -4,027 116 2,503 1,855 2,624 1,646 -7,780 -4,990 19 Africa -56 -13 102 -1 15 -2 32 -3 66 -5 20 All other 407 1,786 -99 -676 -379 439 350 -687 1,332 -477 21 Nonmonetary international and regional organizations -5,300 700 807 788 -1,124 344 -262 l,523r 117 -579 22 International -4,387 1,142 383 777 -1,072 424 -252 1,340r -253 -581 23 Latin America regional 3 -31 225 0 -10 -8 -21 70 191 3 Memo 24 Foreign countries2 30,889 48,187 21,679 2,040 9,907 8,297 291 5,520r -5,319 944 25 Official institutions 31,064 26,624 14,038 2,019 4,299 6,549 -842 -1,068 352 2,730 26 Other foreign2 -181 21,560 7,642 21 5,609 1,747 1,133 6,588r -5,670 -1,786 Oil-exporting countries 7.7 Middle East3 -3,142 1,963 6,594 129 3,560 2,607 -471 -299 670 398 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 Sept. 30, 1989 Rate on Sept. 30, 1989 Rate on Sept. 30, 1989 CCoouunnttrryy CCoouunnttrryy CCoouunnttrryy Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e Percent e M ffe o c n t t i h v e 666666......000000 JJJJJJuuuuuunnnnnneeeeee 111111999999888888999999 888888......777777555555 JJJJJJuuuuuunnnnnneeeeee 111111999999888888999999 888...000 JJJuuunnneee 111999888333 999999......222222555555 JJJJJJuuuuuunnnnnneeeeee 111111999999888888999999 GGeerrmmaannyy,, FFeedd.. RReepp.. ooff...... 555555......000000 JJJJJJuuuuuunnnnnneeeeee 111111999999888888999999 555...555 JJJuuulllyyy 111999888999 444444999999......000000 MMMMMMaaaaaarrrrrr...... 111111999999888888111111 IIttaallyy 111111333333......555555 MMMMMMaaaaaarrrrrr...... 111111999999888888999999 111111222222......444444777777 SSSSSSeeeeeepppppptttttt...... 111111999999888888999999 333333......222222555555 MMMMMMaaaaaayyyyyy 111111999999888888999999 888...000 OOOcccttt... 111999888555 888888......000000 JJJJJJuuuuuunnnnnneeeeee 111111999999888888999999 666666......000000 JJJJJJuuuuuunnnnnneeeeee 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 comdiscounts Treasury bills for 7 to 10 days. mercial banks or brokers. For countries with more than one rate applicable to 2. Minimum lending rate suspended as of Aug. 20, 1981. such discounts or advances, the rate shown is the one at which it is understood the NOTE. Rates shown are mainly those at which the central bank either discounts central bank transacts the largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per year, averages of daily figures 1989 CCoouunnttrryy,, oorr ttyyppee 11998866 11998877 11998888 Mar. Apr. May June July Aug. Sept. 1 Eurodollars 6.70 7.07 7.86 10.18 10.01 9.66 9.28 8.86 8.71 8.85 2 United Kingdom 10.87 9.65 10.28 13.00 13.09 13.08 14.17 13.91 13.86 13.99 3 Canada 9.18 8.38 9.63 12.22 12.58 12.44 12.35 12.24 12.30 12.32 4 Germany 4.58 3.97 4.28 6.57 6.42 6.96 6.93 7.00 6.99 7.37 5 Switzerland 4.19 3.67 2.94 5.75 6.05 7.26 7.09 6.92 7.01 7.42 6 Netherlands 5.56 5.24 4.72 6.88 6.70 7.30 7.11 7.07 7.15 7.53 7 France 7.68 8.14 7.80 9.07 8.61 8.81 8.89 9.05 8.95 9.20 8 Italy 12.60 11.15 11.04 12.88 12.21 12.27 12.35 12.46 12.48 12.41 9 Belgium 8.04 7.01 6.69 8.28 8.17 8.45 8.51 8.46 8.44 8.66 10 Japan 4.96 3.87 3.96 4.21 4.20 4.25 4.46 4.71 4.80 4.88 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 • November 1989 3.28 FOREIGN EXCHANGE RATES' Currency units per dollar 1989 CCoouunnttrryy//ccuurrrreennccyy 11998866 11998877 11998888 Apr. May June July Aug. Sept. 1 Australia/dollar^ 67.093 70.136 78.408 80.35 77.36 75.61 75.66 76.26 77.270 2 Austria/schilling 15.260 12.649 12.357 13.161 13.691 13.912 13.308 13.571 13.733 3 Belgium/franc 44.662 37.357 36.783 39.148 40.723 41.414 39.559 40.313 • 40.840 4 Canada/dollar 1.3896 1.3259 1.2306 1.1888 1.1925 1.1986 1.1891 1.1756 1.1828 5 China, P.R./yuan 3.4615 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 6 Denmark/krone 8.0954 6.8477 6.7411 7.2803 7.5820 7.7087 7.3527 7.4942 7.5872 7 Finland/markka 5.0721 4.4036 4.1933 4.1961 4.3409 4.4302 4.2699 4.3508 4.4219 8 France/franc 6.9256 6.0121 5.9594 6.3223 6.5815 6.7135 6.4105 6.5089 6.5855 9 Germany/deutsche mark 2.1704 1.7981 1.7569 1.8697 1.9461 1.9789 1.8901 1.9271 1.9502 10 Greece/drachma 139.93 135.47 142.00 159.23 165.41 170.42 163.84 166.18 169.03 11 Hong Kong/dollar 7.8037 7.7985 7.8071 7.7828 7.7799 7.7934 7.8040 7.8077 7.8078 12 India/rupee 12.597 12.943 13.899 15.718 16.102 16.420 16.416 16.603 16.745 13 Ireland/punt" 134.14 148.79 152.49 142.67 137.39 134.92 141.26 138.43 136.70 14 Italy/lira 1491.16 1297.03 1302.39 1371.80 1415.83 1434.40 1367.39 1384.22 1404.18 15 Japan/yen 168.35 144.60 128.17 132.04 137.86 143.98 140.42 141.35 145.07 16 Malay sia/ringgit 2.5830 2.5185 2.6189 2.7211 2.6967 2.7086 2.6809 2.6820 2.6980 17 Netherlands/guilder 2.4484 2.0263 1.9778 2.1098 2.1938 2.2292 2.1318 2.1728 2.1992 18 New Zealand/dollar 52.456 59.327 65.558 61.167 60.718 57.376 57.537 59.201 59.143 19 Norway/krone 7.3984 6.7408 6.5242 6.7964 7.0337 7.1852 6.9480 7.0485 7.1264 20 Portugal/escudo 149.80 141.20 144.26 154.54 160.71 164.92 158.31 161.15 163.36 21 Singapore/dollar 2.1782 2.1059 2.0132 1.9497 1.9575 1.9572 1.9589 1.9595 1.9769 22 South Africa/rand 2.2918 2.0385 2.1900 2.5480 2.6710 2.7828 2.6909 2.7220 2.788 23 South Korea/won 884.61 825.93 734.51 672.10 669.25 669.43 669.83 671.06 672.73 24 Spain/peseta 140.04 123.54 116.52 116.146 121.39 126.55 118.73 120.64 122.14 25 Sri Lanka/rupee 27.933 29.471 31.847 34.021 34.145 33.475 34.764 34.256 39.572 26 Sweden/krona 7.1272 6.3468 6.1369 6.3689 6.5756 6.6872 6.4653 6.5490 6.6103 27 Switzerland/franc 1.7979 1.4918 1.4642 1.6469 1.7290 1.7089 1.6281 1.6606 1.6865 28 Taiwan/dollar 37.837 31.756 28.636 26.998 25.788 26.023 25.816 25.679 25.737 29 Thailand/baht 26.314 25.774 25.312 25.524 25.757 25.909 25.771 25.910 26.012 30 United Kingdom/pound2 146.77 163.98 178.13 170.08 163.07 155.30 162.68 159.46 157.15 MEMO 31 United States/dollar3 112.22 96.94 92.72 97.24 100.81 103.09 99.12 100.44 101.87 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 Title and Date Issue Page Assets and liabilities of commercial banks March 31, 1988 June 1989 All June 30, 1988 June 1989 A78 September 30, 1988 August 1989 A72 December 31, 1988 August 1989 A78 Terms of lending at commercial banks August 1988 January 1989 A72 November 1988 April 1989 All February 1989 June 1989 A84 May 1989 November 1989 A73 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1988 May 1989 All December 31, 1988 June 1989 A90 March 31, 1989 August 1989 A84 June 30, 1989 November 1989 A78 Pro forma balance sheet and income statements for priced service operations June 30, 1987 November 1987 A74 September 30, 1987 February 1988 A80 March 31, 1988 August 1988 A70 March 31, 1989 September 1989 All Digitized for FRASER http://fraser.sStlpoeucisiafeld .otragb/ les begin on page A73. Federal Reserve Bank of St. Louis

Financial Markets A73 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-11, 19891 A. Commercial and Industrial Loans WWeeiigghhtteedd Loan rate (percent) Loans MMoosstt Amount of Average average mmaaddee PPPaaarrrtttiiiccciii--- common Characteristic loans size mmaattuurriittyy22 under pation ( o t f h o d u o s l a la n r d s s ) ( o t f h o d u o s l a la n r d s s ) Days W e a f v f e e i e g c r t h a i g t v e e e d 3 ot e a r n r d or a 4 r d q r I u a n a n t r e g t r e i - l 5 e ( c p o m e m r e c m n e t n i t t - ) (p l e o r a c n e s n t) pr r i a c t i e n 6 g ALL BANKS 1 Overnight7 10,266,595 5,890 10.01 .14 9.76-10.17 63.7 7.8 Fed funds 2 One month and under 6,658,363 777 14 10.19 .13 9.61-10.38 77.9 11.7 Other 3 Fixed rate 4,244,878 913 15 10.01 .16 9.61-10.18 73.6 16.9 Domestic 4 Floating rate 2,413,485 616 13 10.51 .19 9.52-11.03 85.7 2.4 Other 5 Over one month and under a year . 11,608,941 162 115 11.14 .18 10.06-12.13 76.7 12.6 Prime 6 Fixed rate 7,105,557 228 77 10.87 .23 9.73-12.12 76.8 15.1 Other 7 Floating rate 4,503,384 111 174 11.57 .17 10.92-12.19 76.5 8.6 Prime 8 Demand8 15,369,801 227 * 11.27 .12 10.52-12.13 80.0 7.1 Prime 9 Fixed rate 2,343,382 563 » 10.15 .25 9.69-10.75 90.9 16.0 Domestic 10 Floating rate 13,026,419 205 * 11.47 .14 10.92-12.13 78.0 5.5 Prime 11 Total short term 43,903,700 293 51 10.78 .14 9.83-11.63 75.0 9.4 Prime 12 Fixed rate (thousands of dollars) .. 23,794,387 571 29 10.28 .13 9.71-10.50 71.8 12.5 Other 13 1-24 222,700 8 109 13.06 .20 12.28-13.72 21.6 .5 Prime 14 25-49 111,292 33 109 12.82 .22 12.01-13.27 22.4 .1 Prime 15 50-99 152,415 64 113 12.12 .18 11.35-13.03 27.8 12.0 Other 16 100-499 546,811 189 86 11.91 .25 10.92-12.96 42.4 11.1 Other 17 500-999 328,755 650 58 10.36 .24 9.85-11.07 74.5 11.0 Other 18 1000 and over 22,432,413 7,540 26 10.19 .09 9.69-10.39 73.6 12.7 Other 19 Floating rate (thousands of dollars) 20,109,313 186 115 11.37 .15 10.47-12.13 78.7 5.8 Prime 20 1-24 527,481 10 167 12.68 .10 12.01-13.31 72.7 1.1 Prime 21 25-49 582,510 34 149 12.50 .08 11.85-13.24 80.0 .6 Prime 22 50-99 896,543 66 182 12.30 .05 11.57-12.75 85.2 2.8 Prime 23 100-499 3,424,180 192 167 12.00 .05 11.25-12.68 85.6 5.9 Prime 24 500-999 1,605,625 650 168 11.77 .09 11.02-12.40 78.6 5.4 Prime 25 1000 and over 13,072,974 5,182 88 10.98 .14 9.99-11.73 76.7 6.4 Prime Months 26 Total long term 5,037,376 267 54 11.64 .13 11.02-12.28 67.2 6.7 Prime 27 Fixed rate (thousands of dollars) .. 1,648,075 249 59 11.32 .25 10.55-11.65 76.2 4.4 Foreign 28 1-99 100,407 18 37 12.42 .21 11.57-13.24 19.5 .0 Prime 29 100-499 154,342 237 39 13.15 .22 12.26-14.25 11.4 1.6 Prime 30 500-999 39,618 661 61 11.64 .23 11.30-12.13 33.2 6.9 Other 31 1000 and over 1,353,707 7,976 63 11.01 .20 10.50-11.44 89.1 5.0 Foreign 32 Floating rate (thousands of dollars) 3,389,301 276 51 11.80 .09 11.07-12.34 62.8 7.8 Prime 33 1-99 230,786 27 48 12.66 .11 12.13-13.24 38.0 5.3 Prime 34 100-499 621,405 224 41 12.09 .11 11.30-12.75 56.1 5.5 Prime 35 500-999 390,277 666 50 11.93 .10 11.07-12.55 64.7 7.6 Prime 36 1000 and over 2,146,833 4,347 55 11.60 .11 11.02-12.19 67.0 8.7 Prime Loan rate (percent) Days PPrriimmee rraattee1100 Effective3 Nominal9 LOANS MADE BELOW PRIME 37 Overnight7 9,746,669 8,137 9.94 9.48 10.50 62.5 8.2 38 One month and under 5,794,384 3,593 13 9.90 9.45 10.50 82.5 13.1 39 Over one month and under a year 5,330,220 725 95 9.96 9.53 10.57 83.3 15.4 40 Demand8 4,662,418 1,679 * 9.87 9.48 10.53 63.5 11.4 41 Total short term 25,533,692 1,974 29 9.92 9.48 10.52 71.6 11.4 42 Fixed rate 19,546,335 2,420 24 9.89 9.45 10.51 71.2 13.2 43 Floating rate 5,987,357 1,232 56 10.02 9.57 10.55 72.8 5.5 Months 44 Total long term 848,392 368 50 10.26 9.85 10.75 74.5 6.5 45 Fixed rate 440,310 435 54 10.02 9.64 10.54 84.5 4.0 46 Floating rate 408,081 315 47 10.52 10.07 10.98 63.7 9.3 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • November 1989 4.23—Continued A. Commercial and Industrial Loans—Continued WWeeiigghhtteedd Loan rate (percent) Loans Characteristic AA (th mm o l oo o u uu a s n nn a s tt n d oo s ff (t A ho v s u e iz r s a e a g n e d s mm aa aa vv tt ee uu rr rr aa ii gg ttyy ee 22 Weighted Inter- co u m nd m e i r t - p l a o t a i n o s n co b m a m se o n of dollars) of dollars) Days e a f v fe e c r t a i g v e e 3 St e a r n ro d r a 4 r d q r u a a n r g t e il 5 e (p m er e c n e t n t) ((ppeerrcceenntt)) p r r a ic t i e n 6 g „ LARGE BANKS 1 Overnight7 6,755,274 6,719 10.05 .09 9.76-10.24 52.3 11.6 Other 2 One month and under 5,307,558 3,881 14 10.08 .06 9.54-10.31 77.7 11.0 Other 3 Fixed rate 3,229,647 5,408 16 9.88 .05 9.59-10.02 72.0 17.6 Domestic 4 Floating rate 2,077,910 2,698 12 10.38 .27 9.52-10.45 86.7 .8 Other 5 Over one month and under a year 7,877,280 1,270 95 10.85 .13 9.89-12.05 82.6 14.3 Other 6 Fixed rate 5,639,072 5,498 69 10.77 .24 9.78-12.12 81.3 15.3 Other 7 Floating rate 2,238,209 432 159 11.05 .10 10.15-11.91 85.9 11.7 Prime 8 Demand8 9,899,613 517 « 11.17 .21 10.19-12.01 72.0 7.4 Prime 9 Fixed rate 1,460,682 795 * 10.52 .28 9.73-11.00 88.3 16.4 Domestic 10 Floating rate 8,438,932 487 * 11.29 .23 10.53-12.13 69.2 5.9 Prime 11 Total short term 29,839,725 1,076 42 10.64 .16 9.79-11.57 71.4 10.8 Other 12 Fixed rate (thousands of dollars) 16,933,081 3,798 29 10.30 .12 9.72-10.52 68.4 14.5 Other 13 1-24 9,617 10 96 12.10 .26 11.50-12.50 33.4 .0 Prime 14 25-49 9,347 32 113 11.93 .19 11.50-12.50 43.3 .0 Prime 15 50-99 16,966 62 108 11.63 .27 11.07-12.50 40.2 .0 Prime 16 100-499 134,837 215 54 11.23 .27 10.75-12.00 68.1 4.1 Prime 17 500-999 187,524 671 49 10.35 .36 9.88-11.50 72.2 12.6 Other 18 1000 and over 16,574,790 8,049 29 10.29 .12 9.72-10.51 68.4 14.6 Other 19 Floating rate (thousands of dollars)... 12,906,644 555 85 11.08 .22 10.06-12.01 75.3 6.0 Prime 20 1-24 96,187 11 168 12.34 .17 11.57-13.24 74.9 .4 Prime 21 25-49 124,901 34 159 12.33 .10 11.57-12.96 80.8 .8 Prime 22 50-99 206,028 66 178 12.21 .05 11.57-12.68 87.8 1.0 Prime 23 100-499 1,099,176 205 158 11.87 .05 11.07-12.40 87.6 3.7 Prime 24 500-999 691,858 668 175 11.67 .10 11.02-12.19 83.6 5.1 Prime 25 1000 and over 10,688,494 6,728 75 10.92 .25 9.86-11.63 73.2 6.5 Prime Months 26 Total long term 3,499,979 1,233 58 11.43 .12 10.92-12.13 76.6 7.1 Prime 27 Fixed rate (thousands of dollars) .. 1,282,591 2,733 64 11.03 .22 10.50-11.45 90.0 5.1 Foreign 28 1-99 6,001 25 46 11.99 .38 11.50-12.75 19.7 .0 Other 29 100-499 16,003 188 47 12.09 .27 11.15-13.52 39.1 .0 Other 30 500-999 10,707 561 73 11.00 .40 10.58-11.65 66.8 9.9 Other 31 1000 and over 1,249,879 9,691 64 11.01 .23 10.50-11.39 91.2 5.1 Foreign 32 Floating rate (thousands of dollars) 2,217,388 936 54 11.66 .12 11.02-12.28 68.8 8.3 Prime 33 1-99 34,093 36 39 12.62 .19 11.85-13.24 72.4 6.7 Prime 34 100-499 198,016 232 41 11.95 .16 11.07-12.55 85.0 10.2 Prime 35 500-999 161,323 689 48 11.72 .11 11.02-12.55 84.6 6.1 Prime 36 1000 and over 1,823,956 5,379 56 11.61 .15 10.92-12.21 65.6 8.3 Prime Loan rate (percent) Days Prime rate10 Effective3 Nominal9 LOANS MADE BELOW PRIME1 37 Overnight7 6,288,829 7,878 9.96 9.50 10.50 49.7 12.5 38 One month and under 4,811,586 7,585 13 9.86 9.41 10.50 82.3 12.6 39 Over one month and under a year. 4,240,955 5,947 85 9.87 9.46 10.50 82.5 15.6 40 Demand8 3,502,613 4,056 * 9.97 9.56 10.50 52.5 10.4 41 Total short term 18,843,983 6,262 28 9.92 9.48 10.50 65.9 12.8 42 Fixed rate 13,594,786 6,292 25 9.90 9.47 10.50 64.3 15.8 43 Floating rate 5,249,197 6,185 42 9.95 9.51 10.50 70.2 5.3 Months 44 Total long term 611,374 2,797 50 10.00 9.63 10.50 83.8 6.7 45 Fixed rate 393,068 2,849 52 9.98 9.61 10.50 89.6 4.3 46 Floating rate .. 218,307 2,710 46 10.04 9.68 10.50 73.3 11.0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A75 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-11, 19891—Continued A. Commercial and Industrial Loans—Continued Weighted Loan rate (percent) Loans Amount of Average average made Partici- Characteristic loans size maturity2 under pation ( o t f h o d u o s l a la n r d s s ) ( o t f h o d u o s l a la n r d s s ) W av e e ig ra h g te e d Standard q I u n a t r e t r i - le co m m e m nt i t- (p l e o r a c n e s n t) Days effective3 range5 (percent) OTHER BANKS 1 Overnight7 3,511,321 4,759 9.69-10.03 2 One month and under 1,350,806 188 15 10.63 9.96-11.03 78.7 14.3 3 Fixed rate 1,015,231 251 13 10.41 9.87-10.46 78.5 15.0 4 Floating rate 335,574 107 21 11.30 10.64-12.13 79.4 12.1 5 Over one month and under a year. 3,731,661 57 156 11.77 10.92-12.75 64.2 9.0 6 Fixed rate 1,466,485 49 107 11.28 9.71-12.68 59.5 14.2 7 Floating rate 2,265,175 64 188 12.09 11.07-12.75 67.2 5.6 8 Demand8 5,470,188 112 11.44 11.02-12.19 94.3 6.5 9 Fixed rate 882,701 380 9.55 9.52-10.52 95.2 15.4 10 Floating rate 4,587,487 99 11.81 11.07-12.28 94.1 4.8 11 Total short term 14,063,975 115 11.07 9.92-12.13 82.6 6.4 12 Fixed rate (thousands of dollars) .. 6,861,306 184 30 10.23 9.69-10.45 80.3 7.4 13 1-24 213,084 7 110 13.10 12.45-13.80 21.1 .5 14 25-49 101,945 33 109 12.90 12.01-13.37 20.5 .1 15 50-99 135,449 65 113 12.18 11.37-13.03 26.2 13.5 16 100-499 411,974 182 92 12.13 10.95-13.03 34.0 13.4 17 500-999 141,231 626 70 10.38 9.83-10.92 77.5 8.9 18 1000 and over 5,857,623 6,395 17 9.90 9.68-10.10 88.1 7.2 19 Floating rate (thousands of dollars) 7,202,669 85 166 11.88 11.07-12.55 5.4 20 1-24 431,294 9 167 12.76 12.13-13.31 72.2 1.2 21 25-49 457,609 34 147 12.55 12.01-13.24 79.7 .6 22 50-99 690,515 66 183 12.32 11.63-12.75 84.5 3.4 23 100-499 2,325,004 186 169 12.06 11.30-12.68 84.6 6.9 24 500-999 913,767 637 165 11.85 11.03-12.46 74.8 5.7 25 1000 and over 2,384,480 2,553 159 11.29 11.02-12.13 92.1 6.1 Months 26 Total long term 1,537,397 96 12.13 11.38-12.75 45.7 27 Fixed rate (thousands of dollars) .. 365,484 59 12.32 11.44-13.80 27.9 2.0 28 1-99 94,406 17 12.44 11.57-13.24 19.5 .0 29 100-499 138,338 244 13.27 12.68-14.25 8.1 1.8 30 500-999 28,912 707 11.88 11.57-12.13 20.7 5.8 31 1000 and over 103,828 2,548 11.07 10.65-11.68 63.7 3.2 32 Floating rate (thousands of dollars) 1,171,913 118 12.07 11.38-12.68 51.2 6.7 33 1-99 196,693 26 12.66 12.13-13.24 32.0 5.0 34 100-499 423,390 220 12.15 11.46-12.75 42.6 3.3 35 500-999 228,953 651 12.09 11.35-12.68 50.7 8.7 36 1000 and over 322,877 11.58 11.07-12.13 74.7 10.9 Loan rate (percent) Days Nominal LOANS MADE BELOW PRIME11 37 Overnight7 3,457,840 8,652 9.89 9.44 10.51 85.8 .4 38 One month and under 982,798 1.005 13 10.08 9.61 10.53 83.1 15.8 39 Over one month and under a year 1,089,265 164 132 10.27 9.82 10.84 86.6 14.3 40 Demand8 1,159,806 606 9.59 9.23 10.60 96.5 14.4 41 Total short term 6,689,709 674 9.93 9.49 10.58 87.4 7.3 42 Fixed rate 5,951,549 1.006 20 9.86 9.42 10.54 86.9 7.3 43 Floating rate 738,160 184 147 10.48 10.02 10.92 91.4 7.3 Months 44 Total long term 237,017 113 10.41 11.39 50.5 45 Fixed rate 47,243 54 10.37 9.96 10.83 42.5 1.3 46 Floating rate .. 189,775 156 11.06 10.52 11.53 52.5 7.4 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • November 1989 4.23—Continued B. Loans to Farmers12 Size class of loans (thousands) Characteristic $250 All sizes $1-9 $10-24 $25-49 $50-99 $100-249 and over ALL BANKS 1 Amount of loans (thousands of dollars) $ 1,002,701 $ 135,127 $ 161,685 $ 135,799 $ 171,083 $ 146,598 $ 252,409 ? Number of loans 56,305 36,956 11,118 3,987 2,607 1,082 556 3 Weighted average maturity (months) 11.4 7.7 7.8 10.2 11.6 14.3 16.0 4 Weighted average interest rate (percent)3 12.49 12.96 12.90 12.70 12.47 12.54 11.84 Standard error .37 .31 .24 .35 .33 .63 ..4466 6 Interquartile range5 11.79-13.24 12.36-13.55 12.13-13.60 12.12-13.31 11.94-12.98 11.68-13.31 1111..0077--1122..7755 By purpose of loan 7 Feeder livestock 12.00 12.77 13.04 1122..1144 1122..2200 1122..3399 1111..5566 8 Other livestock 12.73 12.90 13.17 12.81 13.79 13.06 12.27 9 Other current operating expenses 12.69 12.99 12.87 12.98 12.36 12.58 11.89 10 Farm machinery and equipment 12.89 13.04 13.18 12.67 12.73 * * 11 Farm real estate 12.34 12.47 12.18 12.30 * * * 12 Other 12.18 12.96 12.63 12.32 12.19 12.11 11.78 Percentage of amount of loans 13 With floating rates 6644..44 5533..66 5588..00 6644..44 6622..44 8877..44 6622..44 14 Made under commitment 58.5 47.9 53.9 53.6 53.5 64.2 69.9 By purpose of loan 15 Feeder livestock 21.7 77..00 1100..55 1122..99 2222..11 2211..11 4411..77 16 Other livestock 13.5 6.0 9.7 10.2 7.0 15.7 25.0 17 Other current operating expenses 44.4 72.9 61.9 50.4 43.8 41.7 16.8 18 Farm machinery and equipment 5.0 7.1 7.6 6.8 10.7 * 19 Farm real estate 4.8 1.8 3.8 9.7 * * * 20 Other 10.5 5.2 6.4 10.2 13.0 17.4 10.3 LARGE BANKS12 1 Amount of loans (thousands of dollars) $ 374,612 $ 20,189 $ 29,975 $ 38,628 $ 44,691 $ 74,898 $ 166,233 ?. Number of loans 9,822 5,257 2,015 1,128 679 492 253 3 Weighted average maturity (months) 8.9 5.8 6.8 7.4 7.0 11.9 9.2 4 Weighted average interest rate (percent)3 12.01 12.91 12.60 12.48 12.20 12.15 11.58 5 Standard error .32 .28 .11 .17 .09 .47 .33 6 Interquartile range5 11.07-12.75 12.19-13.31 12.01-13.08 11.91-13.03 11.63-12.75 11.63-12.75 11.02-12.13 By purpose of loan 7 Feeder livestock 11.61 12.70 1122..4499 1122..2277 1122..0077 1122..4411 1111..3322 8 Other livestock 11.94 12.75 12.83 12.91 12.50 12.16 * 9 Other current operating expenses 12.30 12.90 12.51 12.58 12.26 12.20 11.91 10 Farm machinery and equipment 12.80 13.30 12.83 * * * * 11 Farm real estate 12.28 12.70 12.81 * * * * 12 Other 12.03 13.00 12.81 12.16 12.09 11.93 11.78 Percentage of amount of loans 13 With floating rates 85.5 89.1 88.5 9922..44 9933..00 9944..11 7777..00 14 Made under commitment 89.4 88.9 87.4 87.6 92.8 84.4 91.5 By purpose of loan 15 Feeder livestock 28.5 5.5 99..77 1177..44 2211..11 1155..33 4455..22 16 Other livestock 11.8 4.7 5.9 9.1 5.5 13.3 17 Other current operating expenses 37.1 71.6 60.7 48.6 52.7 37.2 2211..66 18 Farm machineiy and equipment 1.1 3.0 3.5 * * * 19 Farm real estate 1.9 1.8 1.8 * 20 Other 19.7 13.3 18.4 20.7 18.6 30.8 15.7 OTHER BANKS12 1 Amount of loans (thousands of dollars) $ 628,089 $ 114,939 $ 131,710 $ 97,172 $ 126,392 $ 71,700 86,176 7 Number of loans 46,483 31,699 9,103 2,859 1,929 590 304 3 Weighted average maturity (months) 12.4 8.0 7.9 11.1 12.8 16.4 22.8 4 Weighted average interest rate (percent)3 12.77 12.97 12.97 12.79 12.56 12.95 12.35 5 Standard error .18 .12 .21 .30 .32 .41 .32 6 Interquartile range 12.09-13.31 12.36-13.60 12.19-13.88 12.19-13.31 12.04-13.05 12.17-13.31 11.79-12.75 By purpose of loan 7 Feeder livestock 1122..3388 1122..7788 1133..1166 1122..0066 1122..2255 * * 8 Other livestock 13.12 12.92 13.21 12.78 * * * 9 Other current operating expenses 12.87 13.00 12.95 13.13 12.40 12.89 * 10 Farm machinery and equipment 12.90 13.02 13.22 12.66 12.74 * * 11 Farm real estate 12.35 12.43 * * * * * 12 Other 12.55 12.94 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 4.23—Continued B. Loans to Farmers12—Continued Size class of loans (thousands) Characteristic All sizes $1-9 $10-24 $25-49 $50-99 $100-249 and $ 2 o 50 v er Percentage of amount of loans 13 With floating rates 51.9 47.3 51.1 53.3 51.5 80.5 * 14 Made under commitment 40.1 40.7 46.3 40.1 39.6 43.1 * By purpose of loan 15 Feeder livestock 17.7 7.3 10.7 11.1 22.5 * 16 Other livestock 14.5 6.2 10.6 10.6 * * * 17 Other current operating expenses 48.8 73.1 62.2 51.0 40.7 46.4 * 18 Farm machinery and equipment 7.4 7.8 8.6 8.3 14.4 * * 19 Farm real estate 6.5 1.8 * * * * * 20 Other 5.0 3.8 * * * * * *Fewer than 10 sample loans. 6. The most common base rate is that rate used to price the largest dollar 1. The survey of terms of bank lending to business collects data on gross loan volume of loans. Base pricing rates include the prime rate (sometimes referred to extensions made during the first full business week in the mid-month of each as a bank's "basic" or "reference" rate); the federal funds rate; domestic money quarter by a sample of 340 commercial banks of all sizes. A subsample of 250 market rates other than the federal funds rate; foreign money market rates; and banks also report loans to farmers. The sample data are blown up to estimate the other base rates not included in the foregoing classifications. lending terms at all insured commercial banks during that week. The estimated 7. Overnight loans are loans that mature on the following business day. terms of bank lending are not intended for use in collecting the terms of loans 8. Demand loans have no stated date of maturity. extended over the entire quarter or residing in the portfolios of those banks. 9. Nominal (not compounded) annual interest rates are calculated from survey Mortgage loans, purchased loans, foreign loans, and loans of less than $1,000 are data on the stated rate and other terms of the loan and weighted by loan size. excluded from the survey. 10. The prime rate reported by each bank is weighted by the volume of loans As of Dec. 31, 1988, assets of most of the large banks were at least $6.0 billion. extended and then averaged. For all insured banks total assets averaged $220 million. 11. The proportion of loans made at rates below prime may vary substantially 2. Average maturities are weighted by loan size and exclude demand loans. from the proportion of such loans outstanding in banks' portfolios. 3. Effective (compounded) annual interest rates are calculated from the stated 12. Among banks reporting loans to farmers (Table B), most "large banks" rate and other terms of the loan and weighted by loan size. (survey strata 1 to 2) had over $20 million in farm loans, and most "other banks" 4. The chances are about two out of three that the average rate shown would (survey strata 3 to 5) had farm loans below $20 million. differ by less than this amount from the average rate that would be found by a The survey of terms of bank lending to farmers now includes loans secured by complete survey of lending at all banks. farm real estate. In addition, the categories describing the purpose of farm loans 5. The interquartile range shows the interest rate range that encompasses the have now been expanded to include "purchase or improve farm real estate." In middle 50 percent of the total dollar amount of loans made. previous surveys, the purpose of such loans was reported as "other." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • November 1989 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19891 Millions of dollars All states2 New York California Illinois IItteemm in T c IB l o u t F d a s i l n g o IB nl F y s 3 in T c I l B o u t F d a s i l n g o IB nl F y s inc T IB l o u F t d a s i l n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g o IB nl F j s r 1 Total assets4 529,380 249,088 393,138 197,095 74,084 30,905 37,488 13,326 7. Claims on nonrelated parties 472,010 201,745 350,024 161,687 66,644 23,938 37,076 12,411 3 Cash and balances due from depository institutions 130,542 110,029 108,447 91,153 10,825 9,805 9,446 7,910 4 Cash items in process of collection and unposted debits 710 0 664 00 2266 0 4 00 5 Currency and coin (U.S. and foreign) 23 n.a. 16 n.a. 2 n.a. 1 n.a. 6 Balances with depository institutions in United States .. 68,723 50,900 56,926 41,800 5,606 4,892 5,484 4,021 7 U.S. branches and agencies of other foreign banks (including their IBFs) 57,603 46,195 47,564 37,372 5,028 4,769 4,691 33,,993333 S Other depository institutions in United States (including their IBFs) 11,120 4,704 9,362 4,428 579 123 793 88 9 Balances with banks in foreign countries and with foreign central banks 59,909 59,129 49,881 49,352 5,100 4,913 3,898 3,889 in Foreign branches of U.S. banks 4,413 4,338 4,216 4,142 125 125 58 58 11 Other banks in foreign countries and foreign central banks 55,496 54,791 45,664 45,210 4,974 4,787 3,840 3,831 12 Balances with Federal Reserve Banks 1,177 n.a. 959 n.a. 91 n.a. 59 n.a. 13 Total securities and loans 280,581 81,498 192,237 62,299 47,524 12,757 25,512 4,097 14 Total securities, book value 33,866 10,434 28,002 8,166 3,775 1,552 1,292 572 15 U.S. Treasury 5,522 n.a. 5,174 n.a. 138 n.a. 148 n.a. 16 Obligations of U.S. government agencies and corporations 55,,881188 n.a. 55,,773333 n.a. 5566 n.a. 00 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 22,526 10,434 17,095 8,166 3,580 1,552 1,144 572 18 Federal funds sold and securities purchased under agreements to resell 13,447 2,938 12,115 2,655 573 100 236 48 19 U.S. branches and agencies of other foreign banks 8,070 1,834 7,231 1,648 479 100 147 20 71) Commercial banks in United States 2,445 177 2,176 162 82 0 64 13 21 Other 2,932 927 2,708 844 12 0 26 15 72 Total loans, gross 246,922 71,102 164,362 54,167 43,799 11,207 24,241 3,525 73 Less: Unearned income on loans 206 38 127 34 50 3 22 1 24 Equals: Loans, net 246,715 71,064 164,235 54,133 43,749 11,204 24,220 3,525 Total loans, gross, by category 75 Real estate loans 25,565 239 14,050 220022 66,,449933 3311 33,,001144 00 76 Loans to depository institutions 62,148 36,976 45,347 24,428 10,836 8,194 4,329 3,117 77 Commercial banks in United States (including IBFs) 35,382 12,374 25,747 6,694 6,537 3,987 2,843 1,670 78 U.S. branches and agencies of other foreign banks ... 31,617 11,916 22,510 6,320 6,289 3,903 2,568 1,670 79 Other commercial banks in United States 3,765 458 3,236 373 248 85 274 0 30 Other depository institutions in United States (including IBFs) 146 7 66 7 4499 0 30 00 31 Banks in foreign countries 26,620 24,595 19,535 17,727 4,250 4,207 1,456 1,448 37 Foreign branches of U.S. banks 534 505 447 420 62 62 22 22 33 Other banks in foreign countries 26,086 24,090 19,087 17,307 4,188 4,145 1,434 1,426 34 Other financial institutions 5,855 687 3,725 543 948 97 521 28 35 Commercial and industrial loans 129,548 16,447 80,158 13,932 24,128 1,902 16,027 298 36 U.S. addressees (domicile) 107,942 330 63,177 307 21,120 14 15,612 9 37 Non-U.S. addressees (domicile) 21,606 16,117 16,981 13,625 3,008 1,888 415 289 38 Acceptances of other banks 941 18 775 14 83 2 23 2 39 U.S. banks 249 2 159 0 42 2 4 0 40 Foreign banks 692 16 616 14 41 0 19 2 41 Loans to foreign governments and official institutions (including foreign central banks) 18,265 16,473 16,334 14,791 11,,005599 982 96 8811 42 Loans for purchasing or carrying securities (secured and unsecured) 2,652 71 22,,449900 7711 116622 00 00 00 43 All other loans 1,949 192 1,482 185 90 0 232 0 44 All other assets 47,440 7,280 37,224 5,581 7,722 1,276 1,882 356 45 Customers' liability on acceptances outstanding 28,008 n.a. 21,815 n.a. 5,059 n.a. 952 n.a. 46 U.S. addressees (domicile) 19,056 n.a. 13,467 n.a. 4,639 n.a. 932 n.a. 47 Non-U.S. addressees (domicile) 8,952 n.a. 8,348 n.a. 419 n.a. 20 n.a. 48 Other assets including other claims on nonrelated parties 19,432 7,280 15,410 5,581 2,663 1,276 930 356 49 Net due from related depository institutions 57,369 47,343 43,115 35,408 7,440 6,968 412 915 50 Net due from head office and other related depository institutions 57,369 n.a. 43,115 n.a. 7,440 n.a. 412 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions5 n.a. 47,343 n.a. 3355,,440088 n.a. 6,968 n.a. 991155 52 Total liabilities4 529,380 249,088 393,138 197,095 74,084 30,905 37,488 13,326 53 Liabilities to nonrelated parties 463,365 219,377 356,000 174,506 67,806 28,589 23,577 8,967 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U. S. Branches and Agencies A79 4.30—Continued Millions of dollars All states2 New York California ex T c IB l o u t F d a s i l ng o IB nl F y s ex T c IB l o u t F d a s l i ng o IB nl F y s 3 ex T c IB l o u t F d a s l i ng o IB nl F j s r ex T c IB l o u t F d a s i l ng 54 Total deposits and credit balances 74,118 171,922 61,282 148,071 3,319 12,699 3,471 55 Individuals, partnerships, and corporations 58,600 14,983 47,426 9,515 2,573 436 2,782 56 U.S. addressees (domicile) 45,032 146 38,969 122 852 0 1,948 57 Non-U.S. addressees (domicile) 13,568 14,837 8,457 9,393 1,721 436 835 58 Commercial banks in United States (including IBFs). 10,918 54,570 9,661 45,771 560 5,728 666 59 U.S. branches and agencies of other foreign banks 3,972 47,681 3,370 39,541 6 5,187 576 60 Other commercial banks in United States 6,946 6,889 6,291 6,229 554 541 90 61 Banks in foreign countries 1,922 91,759 1,714 82,496 106 6,462 2 62 Foreign branches of U.S. banks 306 7,639 286 6,313 20 779 0 63 Other banks in foreign countries 1,616 84,120 1,428 76,182 5,684 2 64 Foreign governments and official institutions (including foreign central banks) 801 10,093 710 9,774 72 2 65 All other deposits and credit balances 1,509 516 1,468 516 0 1 66 Certified and official checks 367 n.a. 302 n.a. 17 67 Transaction accounts and credit balances (excluding IBFs) 6,925 5,831 276 220 68 Individuals, partnerships, and corporations 4,337 3,428 235 196 69 U.S. addressees (domicile) 3,069 2,532 185 191 70 Non-U.S. addressees (domicile) 1,268 896 50 5 71 Commercial banks in United States (including IBFs). 648 638 1 3 72 U.S. branches and agencies of other foreign banks 111 110 0 0 73 Other commercial banks in United States 537 528 1 3 74 Banks in foreign countries 860 791 11 2 75 Foreign branches of U.S. banks 8 8 0 0 76 Other banks in foreign countries 852 783 11 2 77 Foreign governments and official institutions (including foreign central banks) 362 332 78 All other deposits and credit balances 351 341 79 Certified and official checks 367 302 80 Demand deposits (included in transaction accounts and credit balances) 5,358 4,542 193 209 81 Individuals, partnerships, and corporations 3,664 3,016 153 185 82 U.S. addressees (domicile) 2,648 2,260 124 180 83 Non-U.S. addressees (domicile) 1,017 756 29 5 84 Commercial banks in United States (including IBF)s. 81 74 1 3 85 U.S. branches and agencies of other foreign banks 13 12 0 0 86 Other commercial banks in United States 68 62 1 3 87 Banks in foreign countries 733 667 11 2 88 Foreign branches of U.S. banks 8 8 0 0 89 Other banks in foreign countries 725 660 11 2 90 Foreign governments and official institutions (including foreign central banks) 303 279 3 1 91 All other deposits and credit balances 209 203 1 1 92 Certified and official checks 367 302 24 17 93 Non-transaction accounts (including MMDAs, excluding IBFs) 67,192 55,451 3,043 3,251 94 Individuals, partnerships, and corporations 54,263 43,998 2,338 2,586 95 U.S. addressees (domicile) 41,964 36,437 667 1,757 96 Non-U.S. addressees (domicile) 12,300 7,560 1,672 830 97 Commercial banks in United States (including IBFs). 10,270 9,024 559 663 98 U.S. branches and agencies of other foreign banks 3,861 3,260 6 576 1 1 1 9 0 0 0 9 0 2 1 Ba O O F n o t t k h h r s e e e i r i r n g n b c f o a o b n m r r k e a m s i n g e i c n n r h c c e f i o s o a u r l o e n b f i t g a r U n i n e . k s c S s o . u i b n n a t U n ri k n e s s i t ed States 6 1 , , 4 0 2 7 1 6 6 9 0 2 3 8 5, 6 7 9 2 4 6 7 2 5 3 8 3 5 9 5 2 7 6 3 0 6 87 0 0 0 103 Foreign governments and official institutions (including foreign central banks) 439 378 21 1 104 All other deposits and credit balances 1,158 1,127 29 1 105 IBF deposit liabilities 171,922 148,071 12,699 106 Individuals, partnerships, and corporations 14,983 9,515 436 107 U.S. addressees (domicile) 146 122 0 108 Non-U.S. addressees (domicile) 14,837 9,393 436 109 Commercial banks in United States (including IBFs). 54,570 45,771 5,728 110 U.S. branches and agencies of other foreign banks 47,681 39,541 5,187 111 Other commercial banks in United States 6,889 6,229 541 112 Banks in foreign countries 91,759 82,496 6,462 113 Foreign branches of U.S. banks 7,639 6,313 779 114 Other banks in foreign countries 84,120 76,182 5,684 115 Foreign governments and official institutions (including foreign central banks) 10,093 9,774 72 116 All other deposits and credit balances 516 516 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • November 1989 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19891—Continued Millions of dollars All states2 New York California Illinois IItteemm inc T I l B o u t F d a s i l n g o IB nl F y s inc T I l B o u F t d a s i l n g o IB nl F y s ^ inc T I l B o u F t d a s i l n g o IB n F l/ s inc T I l B o u F t d a s i l n g o IB nl F j s r 117 Federal funds purchased and securities sold under agreements to repurchase 53,678 3,279 41,112 2,568 8,259 502 3,603 32 118 U.S. branches and agencies of other foreign banks 9,548 785 6,123 325 2,265 407 968 0 119 Other commercial banks in United States 22,668 465 14,926 387 5,192 47 2,347 0 i?n Other 21,462 2,029 20,063 1,856 802 48 288 32 121 Other borrowed money 116,328 37,789 69,261 18,858 35,115 14,396 9,546 3,565 17? Owed to nonrelated commercial banks in United States (including IBFs) 71,305 14,834 38,410 4,517 25,277 8,437 5,873 1,296 123 Owed to U.S. offices of nonrelated U.S. banks 30,526 2,276 18,698 982 8,298 1,056 2,911 IS 124 Owed to U.S. branches and agencies of nonrelated foreign banks 40,779 12,558 19,712 3,535 16,979 7,381 2,962 1,223 125 Owed to nonrelated banks in foreign countries 20,681 20,043 12,011 11,447 5,986 5,949 2,285 2,269 176 Owed to foreign branches of nonrelated U.S. banks ... 3,183 3,053 1,712 1,592 1,146 1,137 237 237 127 Owed to foreign offices of nonrelated foreign banks.... 17,499 16,990 10,299 9,855 4,840 4,812 2,047 2,032 128 Owed to others 24,342 2,912 18,841 2,894 3,851 10 1,389 0 129 All other liabilites 47,319 6,387 36,273 5,010 8,414 992 1,880 291 130 Branch or agency liability on acceptances executed and outstanding 31,195 n. a. 23,214 n.a. 66,,336655 n. a. 11,,116611 n. a. 131 Other liabilities to nonrelated parties 16,124 6,387 13,059 5,010 2,050 992 719 291 132 Net due to related depository institutions5 66,015 29,711 37,139 22,589 6,278 2,316 13,911 4,360 133 Net due to head office and other related depository institutions 66,015 n.a. 37,139 n. a. 6,278 n.a. 13,911 n. a. 134 Net due to establishing entity, head office, and other related depository institutions n.a. 29,711 n.a. 22,589 n.a. 2,316 n.a. 4,360 MEMO 135 Non-interest bearing balances with commercial banks in United States 2,128 18 1,874 18 133 0 52 0 136 Holding of commercial paper included in total loans 1,056 764 241 50 137 Holding of own acceptances included in commercial and industrial loans 2,532 1,228 11,,002277 134 138 Commercial and industrial loans with remaining maturity of one year or less 69,840 40,343 14,406 8,874 139 Predetermined interest rates 43,574 n.a. 23,753 n. a. 10,783 n.a. 5,149 n. a. 140 Floating interest rates 26,266 16,590 3,622 3,726 141 Commercial and industrial loans with remaining maturity of more than one year 59,708 39,815 9,722 7,153 147 Predetermined interest rates 18,895 13,184 3,223 1,965 143 Floating interest rates 40,812 26,632 6,499 5,187 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30—Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c IB l o u t F d a s i l n g o IB nl F j s r ex T c IB l o u F t d a s i l n g o IB nl F y s 3 ex T c IB l o u F t d a s i l n g o IB nl F y s ex T c IB l o u F t d a s i l n g o IB nl F y s 3 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 89,252 1 76,474 1 3,282 1 3,839 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 49,849 42,144 1,956 1,681 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 12,595 10,367 664 n.a. 1,404 n.a. 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee n.a. n.a. \ \ wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 26,808 \ 23,962 \ 663 754 All states2 New York California Illinois in T c I l B o u t F d a s i l n g o IB nl F y s in T c I l B o u t F d a s i l n g o IB nl F y s 3 inc T IB l o u F t d a s i l n g o IB nl F y s inc T IB l o u F t d a s i l n g o IB nl F y s 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 3322,,992266 10,240 2277,,225544 8,092 33,,557766 1,433 11,,330011 573 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 6666,,669955 n.a. 3388,,441133 n.a. 2233,,668844 n.a. 33,,222277 n.a. 553311 224488 112277 5533 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data re reported for that item, either because the item is not an eligible "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign IBF asset or liability or because that level of detail is not reported for IBFs. From Banks." Details may not add to totals because of rounding. This form was first December 1981 through September 1985, IBF data were included in all applicable used for reporting data as of June 30, 1980, and was revised as of December 31, items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FR 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G.ll, last issued on footnote 5). On the former monthly branch and agencyu report, available through July 10, 1980. Data in this table and in the G.ll tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefopre, total asset and total liability figures in this table are not items, comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Board of Governors ALAN GREENSPAN, Chairman MARTHA R. SEGER MANUEL H. JOHNSON, Vice Chairman WAYNE D. ANGELL OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director BOB STAHLY MOORE, Special Assistant to the Board CHARLES J. SIEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director LEGAL DIVISION ROBERT F. GEMMILL, Staff Adviser DONALD B. ADAMS, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel PETER HOOPER III, Assistant Director RICHARD M. ASHTON, Associate General Counsel KAREN H. JOHNSON, Assistant Director OLIVER IRELAND, Associate General Counsel RALPH W. SMITH, JR., Assistant Director RICKI R. TIGERT, Associate General Counsel SCOTT G. ALVAREZ, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel DIVISION OF RESEARCH AND STATISTICS OFFICE OF THE SECRETARY MICHAEL J. PRELL, Director EDWARD C. ETTIN, Deputy Director THOMAS D. SIMPSON, Associate Director WILLIAM W. WILES, Secretary LAWRENCE SLIFMAN, Associate Director JENNIFER J. JOHNSON, Associate Secretary DAVID J. STOCKTON, Associate Director BARBARA R. LOWREY, Associate Secretary MARTHA BETHEA, Deputy Associate Director PETER A. TINSLEY, Deputy Associate Director MYRON L. KWAST, Assistant Director DIVISION OF CONSUMER SUSAN J. LEPPER, Assistant Director PATRICK M. PARKINSON, Assistant Director AND COMMUNITY AFFAIRS MARTHA S. SCANLON, Assistant Director JOYCE K. ZICKLER, Assistant Director GRIFFITH L. GARWOOD, Director LEVON H. GARABEDIAN, Assistant Director GLENN E. LONEY, Assistant Director (Administration) ELLEN MALAND, Assistant Director DOLORES S. SMITH, Assistant Director DIVISION OF MONETARY AFFAIRS DIVISION OF BANKING SUPERVISION AND REGULATION DONALD L. KOHN, Director DAVID E. LINDSEY, Deputy Director WILLIAM TAYLOR, Staff Director BRIAN F. MADIGAN, Assistant Director DON E. KLINE, Associate Director RICHARD D. PORTER, Assistant Director FREDERICK M. STRUBLE, Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director RICHARD SPILLENKOTHEN, Deputy Associate Director OFFICE OF THE INSPECTOR GENERAL HERBERT A. BIERN, Assistant Director JOE M. CLEAVER, Assistant Director BRENT L. BOWEN, Inspector General ROGER T. COLE, Assistant Director BARRY R. SNYDER, Assistant Inspector General JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 and Official Staff EDWARD W. KELLEY, JR. JOHN P. LA WARE 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. DIGIOIA, 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 DAY W. RADEBAUGH, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director DIVISION OF APPLICATIONS DEVELOPMENT AND STATISTICAL SERVICES WILLIAM R. JONES, Director RICHARD C. STEVENS, Assistant Director PATRICIA A. WELCH, Assistant Director ROBERT J. ZEMEL, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Bulletin • November 1989 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL SILAS KEEHN THOMAS C. MELZER ROGER GUFFEY EDWARD W. KELLEY, JR. MARTHA R. SEGER MANUEL H. JOHNSON JOHN P. LA WARE 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. GILLUM, 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

A85 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. SILBERSTEIN, 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

A86 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SER- THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A VICES, MS-138, Board of Governors of the Federal Reserve MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. System, Washington, D.C. 20551 or telephone (202) 452- WELCOME TO THE FEDERAL RESERVE. MARCH 1989. 14 PP. 3244. When a charge is indicated, payment should accom- PROCESSING AN APPLICATION THROUGH THE FEDERAL REpany request and be made payable to the Board of Governors SERVE SYSTEM. August 1985. 30 pp. of the Federal Reserve System. Payment from foreign resi- INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. dents should be drawn on a U.S. bank. 440 pp. $9.00 each. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- December 1986. 264 pp. $10.00 each. TIONS. 1984. 120 pp. ANNUAL REPORT. ANNUAL REPORT: BUDGET REVIEW, 1988-89. CONSUMER EDUCATION PAMPHLETS FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or Short pamphlets suitable for classroom use. Multiple copies $2.50 each in the United States, its possessions, Canada, are available without charge. and Mexico. Elsewhere, $35.00 per year or $3.00 each. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint Consumer Handbook on Adjustable Rate Mortgages of Part I only) 1976. 682 pp. $5.00. Consumer Handbook to Credit Protection Laws ANNUAL STATISTICAL DIGEST Federal Reserve Glossary 1974-78. 1980. 305 pp. $10.00 per copy. A Guide to Business Credit and the Equal Credit Opportunity 1981. 1982. 239 pp. $ 6.50 per copy. Act 1982. 1983. 266 pp. $ 7.50 per copy. A Guide to Federal Reserve Regulations 1983. 1984. 264 pp. $11.50 per copy. How to File A Consumer Credit Complaint 1984. 1985. 254 pp. $12.50 per copy. Series on the Structure of the Federal Reserve System 1985. 1986. 231 pp. $15.00 per copy. The Board of Governors of the Federal Reserve System 1986. 1987. 288 pp. $15.00 per copy. The Federal Open Market Committee 1987. 1988. 272 pp. $15.00 per copy. Federal Reserve Bank Board of Directors SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- Federal Reserve Banks RIES OF CHARTS. Weekly. $30.00 per year or $.70 each in Organization and Advisory Committees the United States, its possessions, Canada, and Mexico. A Consumer's Guide to Mortgage Lock-Ins Elsewhere, $35.00 per year or $.80 each. A Consumer's Guide to Mortgage Settlement Costs THE FEDERAL RESERVE ACT and other statutory provisions A Consumer's Guide to Mortgage Refinancing affecting the Federal Reserve System, as amended Making Deposits: When Will Your Money Be Available? through August 1988. 608 pp. $10.00 When Your Home is on the Line: What You Should Know REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- About Home Equity Lines of Credit ERAL RESERVE SYSTEM. ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Regulation Z) Vol. I (Regular Transactions). 1969. 100 PAMPHLETS FOR FINANCIAL INSTITUTIONS pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one Short pamphlets on regulatory compliance, primarily suitaddress, $2.00 each. able for banks, bank holding companies, and creditors. INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; 10 or more to one address, $1.25 each. Limit of 50 copies FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated at least monthly. (Requests must be prepaid.) The Board of Directors' Opportunities in Community Rein- Consumer and Community Affairs Handbook. $75.00 per vestment year. The Board of Directors' Role in Consumer Law Compliance Monetary Policy and Reserve Requirements Handbook. Combined Construction/Permanent Loan Disclosure and $75.00 per year. Regulation Z Securities Credit Transactions Handbook. $75.00 per year. Community Development Corporations and the Federal The Payment System Handbook. $75.00 per year. Reserve Federal Reserve Regulatory Service. 3 vols. (Contains all Construction Loan Disclosures and Regulation Z three Handbooks plus substantial additional material.) Finance Charges Under Regulation Z $200.00 per year. How to Determine the Credit Needs of Your Community Rates for subscribers outside the United States are as Regulation Z: The Right of Rescission follows and include additional air mail costs: The Right to Financial Privacy Act Federal Reserve Regulatory Service, $250.00 per year. Signature Rules in Community Property States: Regulation B Each Handbook, $90.00 per year. Signature Rules: Regulation B Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 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. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN RE- STAFF STUDIES: Summaries Only Printed in the QUIREMENTS IN THE MARKETS FOR STOCKS AND DERIV- ATIVE PRODUCTS, by Mark J. Warshawsky with the Bulletin assistance of Dietrich Earnhart. September 1989. 23 pp. Studies and papers on economic and financial subjects that are of general interest. Requests to obtain single copies of the full text or to be added to the mailing list for the series REPRINTS OF BULLETIN ARTICLES may be sent to Publications Services. Most of the articles reprinted do not exceed 12 pages. Staff Studies 114-145 are out of print. Limit of 10 copies 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF Foreign Experience with Targets for Money Growth. 10/83. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by Intervention in Foreign Exchange Markets: A Summary of Thomas F. Brady. November 1985. 25 pp. Ten Staff Studies. 11/83. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- A Financial Perspective on Agriculture. 1/84. DEXES OF THE MONETARY AGGREGATES, by Helen T. Survey of Consumer Finances, 1983. 9/84. Farr and Deborah Johnson. December 1985. 42 pp. Bank Lending to Developing Countries. 10/84. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE Survey of Consumer Finances, 1983: A Second Report. ECONOMIC RECOVERY TAX ACT: SOME SIMULATION 12/84. RESULTS, by Flint Brayton and Peter B. Clark. Decem- Union Settlements and Aggregate Wage Behavior in the ber 1985. 17 pp. 1980s. 12/84. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN The Thrift Industry in Transition. 3/85. BANKING BEFORE AND AFTER ACQUISITION, by Stephen A Revision of the Index of Industrial Production. 7/85. A. Rhoades. April 1986. 32 pp. Financial Innovation and Deregulation in Foreign Industrial 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: Countries. 10/85. A REEXAMINATION AND AN APPLICATION, by John T. Recent Developments in the Bankers Acceptance Market. Rose and John D. Wolken. May 1986. 13 pp. 1/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRIC- The Use of Cash and Transaction Accounts by American ING FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Families. 2/86. Alice P. White, Paul F. O'Brien, and Mary M. Financial Characteristics of High-Income Families. 3/86. McLaughlin. January 1987. 30 pp. Prices, Profit Margins, and Exchange Rates. 6/86. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A Agricultural Banks under Stress. 7/86. REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Foreign Lending by Banks: A Guide to International and April 1987. 18 pp. U.S. Statistics. 10/86. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Recent Developments in Corporate Finance. 11/86. Alice P. White. September 1987. 14 pp. Measuring the Foreign-Exchange Value of the Dollar. 6/87. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF PRO- Changes in Consumer Installment Debt: Evidence from the POSED CEILINGS ON CREDIT CARD INTEREST RATES, by 1983 and 1986 Surveys of Consumer Finances. 10/87. Glenn B. Canner and James T. Fergus. October 1987. Home Equity Lines of Credit. 6/88. 26 pp. U.S. International Transactions in 1988. 5/89. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Mutual Recognition: Integration of the Financial Sector in the Warshawsky. November 1987. 25 pp. European Community. 9/89 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Index to Statistical Tables References are to pages A3-A81 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand Deposits—Continued Agricultural loans, commercial banks, 19, 20, 76 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 22 Banks, by classes, 18-20 Turnover, 15 Domestic finance companies, 36 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 8 Financial institutions, 26 Reserves and related items, 3, 4, 5, 12 Foreign banks, U.S. branches and agencies, 21, 78-81 Deposits (See also specific types) Automobiles Banks, by classes, 3, 18-20, 21 Consumer installment credit, 39, 40 Federal Reserve Banks, 4, 10 Production, 49, 50 Turnover, 15 Discount rates at Reserve Banks and at foreign central BANKERS acceptances, 9, 23, 24 banks and foreign countries (See Interest rates) Bankers balances, 18-20. (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Bonds (See also U.S. government securities) Dividends, corporate, 35 New issues, 34 Rates, 24 EMPLOYMENT, 47 Branch banks, 21, 57, 78-81 Eurodollars, 24 Business activity, nonfinancial, 46 Business expenditures on new plant and equipment, 35 Business loans (See Commercial and industrial loans) FARM mortgage loans, 38 Federal agency obligations, 4, 9, 10, 11, 31, 32 CAPACITY utilization, 48 Federal credit agencies, 33 Capital accounts Federal finance Banks, by classes, 18 Debt subject to statutory limitation, and types and own- Federal Reserve Banks, 10 ership of gross debt, 30 Central banks, discount rates, 69 Receipts and outlays, 28, 29 Certificates of deposit, 24 Treasury financing of surplus, or deficit, 28 Commercial and industrial loans Treasury operating balance, 28 Commercial banks, 16, 19, 73-77, 78-79 Federal Financing Bank, 28, 33 Weekly reporting banks, 19-21 Federal funds, 6, 17, 19, 20, 21, 24, 28 Commercial banks Federal Home Loan Banks, 33 Assets and liabilities, 18-20, 78-81 Federal Home Loan Mortgage Corporation, 33, 37, 38 Commercial and industrial loans, 16, 18, 19, 20, 21, Federal Housing Administration, 33, 37, 38 73-77 Federal Land Banks, 38 Consumer loans held, by type and terms, 39, 40 Federal National Mortgage Association, 33, 37, 38 Loans sold outright, 19 Federal Reserve Banks Nondeposit funds, 17 Condition statement, 10 Real estate mortgages held, by holder and property, 38 Discount rates (See Interest rates) Terms of lending, 73-77 U.S. government securities held, 4, 10, 11, 30 Time and savings deposits, 3 Federal Reserve credit, 4, 5, 10, 11 Commercial paper, 23, 24, 36 Federal Reserve notes, 10 Condition statements (See Assets and liabilities) Federal Savings and Loan Insurance Corporation insured Construction, 46, 51 institutions, 26 Consumer installment credit, 39, 40 Federally sponsored credit agencies, 33 Consumer prices, 46, 48 Finance companies Consumption expenditures, 53, 54 Assets and liabilities, 36 Corporations Business credit, 36 Nonfinancial, assets and liabilities, 35 Loans, 39, 40 Profits and their distribution, 35 Paper, 23, 24 Security issues, 34, 67 Financial institutions Cost of living (See Consumer prices) Loans to, 19, 20, 21 Credit unions, 26, 39. (See also Thrift institutions) Selected assets and liabilities, 26 Currency and coin, 18 Float, 4 Currency in circulation, 4, 13 Flow of funds, 41, 43, 44, 45 Customer credit, stock market, 25 Foreign banks, assets and liabilities of U.S. branches and agencies, 21, 78-81 DEBITS to deposit accounts, 15 Foreign currency operations, 10 Debt (See specific types of debt or securities) Foreign deposits in U.S. banks, 4, 10, 19, 20 Demand deposits Foreign exchange rates, 70 Banks, by classes, 18-21 Foreign trade, 56 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 Foreigners REAL estate loans Claims on, 57, 59, 62, 63, 64, 66 Banks, by classes, 16, 19, 20, 38 Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68 Financial institutions, 26 Terms, yields, and activity, 37 GOLD Type of holder and property mortgaged, 38 Certificate account, 10 Repurchase agreements, 6, 17, 19, 20, 21 Stock, 4, 56 Reserve requirements, 8 Government National Mortgage Association, 33, 37, 38 Reserves Gross national product, 53 Commercial banks, 18 Depository institutions, 3, 4, 5, 12 HOUSING, new and existing units, 51 Federal Reserve Banks, 10 U.S. reserve assets, 56 INCOME, personal and national, 46, 53, 54 Residential mortgage loans, 37 Industrial production, 46, 49 Retail credit and retail sales, 39, 40, 46 Installment loans, 39, 40 Insurance companies, 26, 30, 38 SAVING Interest rates Flow of funds, 41, 43, 44, 45 Bonds, 24 National income accounts, 53 Commercial banks, 73-77 Savings and loan associations, 26, 38, 39, 41. (See also Consumer installment credit, 40 Thrift institutions) Federal Reserve Banks, 7 Savings banks, 26, 38, 39 Foreign central banks and foreign countries, 69 Savings deposits (See Time and savings deposits) Money and capital markets, 24 Securities (See also specific types) Mortgages, 37 Federal and federally sponsored credit agencies, 33 Prime rate, 23 Foreign transactions, 67 International capital transactions of United States, 55-69 New issues, 34 International organizations, 59, 60, 62, 65, 66 Prices, 25 Inventories, 53 Special drawing rights, 4, 10, 55, 56 Investment companies, issues and assets, 35 State and local governments Investments (See also specific types) Deposits, 19, 20 Banks, by classes, 18, 19, 20, 21, 26 Holdings of U.S. government securities, 30 Commercial banks, 3, 16, 18-20, 38 New security issues, 34 Federal Reserve Banks, 10, 11 Ownership of securities issued by, 19, 20, 26 Financial institutions, 26, 38 Rates on securities, 24 Stock market, selected statistics, 25 LABOR force, 47 Stocks (See also Securities) Life insurance companies {See Insurance companies) New issues, 34 Loans (See also specific types) Prices, 25 Banks, by classes, 18-20 Commercial banks, 3, 16, 18-20, 73-77 Student Loan Marketing Association, 33 Federal Reserve Banks, 4, 5, 7, 10, 11 Financial institutions, 26, 38 Insured or guaranteed by United States, 37, 38 TAX receipts, federal, 29 Thrift institutions, 3. (See also Credit unions and Savings MANUFACTURING and loan associations) Capacity utilization, 48 Time and savings deposits, 3, 13, 17, 18, 19, 20, 21 Production, 48, 50 Trade, foreign, 56 Margin requirements, 25 Treasury cash, Treasury currency, 4 Member banks (See also Depository institutions) Treasury deposits, 4, 10, 28 Federal funds and repurchase agreements, 6 Treasury operating balance, 28 Reserve requirements, 8 UNEMPLOYMENT, 47 Mining production, 50 U.S. government balances Mobile homes shipped, 51 Commercial bank holdings, 18, 19, 20 Monetary and credit aggregates, 3, 12 Treasury deposits at Reserve Banks, 4, 10, 28 Money and capital market rates, 24 U.S. government securities Money stock measures and components, 3, 13 Bank holdings, 18-20, 21, 30 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 32 Mutual funds, 35 Federal Reserve Bank holdings, 4, 10, 11, 30 Mutual savings banks (See Thrift institutions) Foreign and international holdings and transactions, 10, 30, 68 NATIONAL defense outlays, 29 Open market transactions, 9 National income, 53 Outstanding, by type and holder, 26, 30 Rates, 24 OPEN market transactions, 9 U.S. international transactions, 55-69 Utilities, production, 50 PERSONAL income, 54 Prices VETERANS Administration, 37, 38 Consumer and producer, 46, 52 Stock market, 25 Prime rate, 23 WEEKLY reporting banks, 19-21 Producer prices, 46, 52 Wholesale (producer) prices, 46, 52 Production, 46, 49 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 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 Donald E. Nelson Birmingham 35283 Nelda P. Stephenson Fred R. Herr1 Jacksonville 32231 Hugh Brown James D. Hawkins1 Miami 33152 Jose L. Saumat James T. Curry III Nashville 37203 Patsy R. Williams Melvin K. Purcell 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 John F. Gardner Leonard W. Fernelius1 (Acting) 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. 2. Executive Vice President. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories April 1984 11 i ALASKA i i i i i ©© i y yp •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

Publications of Interest NEW HANDBOOK AVAILABLE FROM THE containing all Board regulations and related statutes, REGULATORY SERVICE interpretations, policy statements, rulings, and staff opinions. For those with a more specialized interest in The Federal Reserve Board has announced publica- the Board's regulations, parts of this service are pubtion of The Payment System Handbook. The new lished separately as handbooks pertaining to monetary handbook, which is part of the Federal Reserve Reg- policy, securities credit, consumer affairs, and, availulatory Service, deals with expedited funds availabil- able for the first time in September 1988, The Payment ity, check collection, wire transfers, and risk-reduc- System Handbook. tion policy. It includes Regulation CC (Availability of For domestic subscribers, the annual rate for The Funds and Collection of Checks), Regulation J (Col- Payment System Handbook is $75. For subscribers lection of Checks and Other Items and Wire Transfers outside the United States, the price, including addiof Funds by Federal Reserve Banks), the Expedited tional air mail costs, is $90. For the Federal Reserve Funds Availability Act and related statutes, official Regulatory Service, not including handbooks, the an- Board commentary on Regulation CC, and policy nual rate is $200 for domestic subscribers and $250 for statements on risk reduction in the payment system. In subscribers outside the United States. All subscription addition, it contains detailed subject and citation in- requests must be accompanied by a check payable to dexes. It is published in loose-leaf binder form and is "Board of Governors of the Federal Reserve updated monthly. System." Orders should be addressed to Publications To promote public understanding of its regulatory Services, Mail Stop 138, Board of Governors of the functions, the Board publishes the Federal Reserve Federal Reserve System, Washington, D.C. 20551. Regulatory Service, a three-volume loose-leaf service Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis