Federal Reserve Bulletin, 1990-01

VOLUME 76 • NUMBER 1 • JANUARY 1990 FEDERAL RESERVE m 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 L POLICY TARGETS AND OPERATING Change in the database used for compiling PROCEDURES IN THE 1990S the statistical appendix to the Bulletin. This article focuses on the issue of how to Erratum item for Bulletin chart. keep monetary policy on a path that leads to Admission of five state banks to memberthe achievement of the objectives the monship in the Federal Reserve System. etary authorities have set for themselves, how the process of adjusting policy to this end has evolved over the past decade or so, 17 RECORD OF POLICY ACTIONS OF THE and what that evolution may mean for the FEDERAL OPEN MARKET COMMITTEE success of policy in the 1990s. At its meeting on October 3, 1989, the Committee adopted a directive that called 8 TREASURY AND FEDERAL RESERVE for maintaining the current degree of pres- FOREIGN EXCHANGE OPERATIONS sure on reserve positions and that provided The dollar ended the August-October re- for giving particular weight to potential deporting period Vi percent higher on a trade- velopments that might require some slight weighted basis in terms of other Group of easing during the intermeeting period. Ac- Ten currencies as measured by the staff of cordingly, slightly greater reserve restraint the Board of Governors. On balance, the might be acceptable during the intermeeting dollar declined 1 lA percent against the Ger- period, while some slight lessening of reman mark and Vi percent against the Cana- serve restraint would be acceptable, dedian dollar while rising 4lA percent against pending on progress toward price stability, the Japanese yen and 5V2 percent against the strength of the business expansion, the the British pound. behavior of the monetary aggregates, and developments in foreign exchange and domestic financial markets. The reserve con- 13 INDUSTRIAL PRODUCTION ditions contemplated by the Committee Industrial production decreased 0.7 percent were expected to be consistent with growth in October after having been unchanged in of M2 and M3 at annual rates of around 6V2 September (revised). percent and 4V2 percent respectively over the three-month period from September to 15 ANNOUNCEMENTS December. The intermeeting range for the federal funds rate, which provides one Schedule for 1990 fees for Federal Reserve mechanism for initiating consultation of the Bank services. Committee when its boundaries are persis- Issuance of final orders in enforcement pro- tently exceeded, was left unchanged at 7 to ceedings. 11 percent. Proposed revisions to staff commentaries on Regulations E and Z. 23 LEGAL DEVELOPMENTS Proposal for transition capital standards for Various bank holding company, bank serstate member banks and bank holding com- vice corporation, and bank merger orders; panies through 1990. and pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AI FINANCIAL AND BUSINESS STATISTICS A78 BOARD OF GOVERNORS AND STAFF These tables reflect data available as of A80 FEDERAL OPEN MARKET COMMITTEE November 27, 1989. AND STAFF; ADVISORY COUNCILS A3 Domestic Financial Statistics A46 Domestic Nonfinancial Statistics A82 FEDERAL RESERVE BOARD A55 International Statistics PUBLICATIONS A71 GUIDE TO TABULAR PRESENTATION, A84 INDEX TO STATISTICAL TABLES STATISTICAL RELEASES, AND SPECIAL TABLES A86 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES A87 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Targets and Operating Procedures in the 1990s Donald L. Kohn, Director of the Board's Divi- treating the closely related issues of how the sion of Monetary Affairs, prepared this article. It central bank reacts to new information and how was adapted from a paper he presented at the it ensures consistency between its short-run pol- Economic Policy Symposium sponsored by the icy actions and its long-run objectives. Federal Reserve Bank of Kansas City at Jackson Hole, Wyoming, August 31, 1989. WHY INTERMEDIATE INDICATORS? A presentation entitled "Policy Targets and Operating Procedures in the 1990s" could cover To some observers, debates about what central many topics. What this paper will not deal with is banks should be looking at to guide policy decithe ultimate targets of monetary policy. I take sions are superfluous. The ultimate objective is that target to be price stability. Along with others stable prices, and these observers have advoat the Federal Reserve, I believe that the price cated keying policy directly to new readings of level is the only variable that over the long run is broad measures of inflation. In their view, either under the control of the central bank. Moreover, the monetary base or the federal funds rate for a variety of reasons having to do with eco- should be adjusted in direct response to informanomic inefficiencies and with the unsustainability tion that the price level is deviating from a preset of other inflation goals, stability is the only objective. sensible objective for the price level. Nor do I Suggestions of this sort have proliferated in undertake the difficult task of laying out a path of recent years. They are motivated in some cases interim objectives to get from the current state of by frustration with alternative intermediate tarmoderate inflation to price stability. gets previously thought to be useful in accom- Rather, I want to focus on the narrower issue plishing the same objective. In particular, this of how to keep policy on a path that leads to the camp has attracted some former monetarists, achievement of the objectives the monetary au- who are now a little less certain of the relationthorities have set for themselves, how the pro- ship between money supply measures and spendcess of adjusting policy to this end has evolved ing or inflation. This greater uncertainty has over the last decade or so, and what that evolu- resulted from the changes in markets for deposits tion may mean for the success of policy in the and other financial assets wrought by innovation 1990s. and deregulation in the 1980s. (The implications An examination of policy targets and operating of these changes for the implementation of monprocedures inevitably entails consideration of the etary policy in coming years is discussed below.) role of various intermediate targets and indica- Some academic advocates of adjusting the tors. But I begin by examining the need for monetary base or the funds rate in response to explicit intermediate indicators between central the price level are reasoning from theories in bank actions and their results for the price level. which monetary policy affects the path of output Then I will discuss the reasons for the changing only in trivial ways so that there is no reason not status of money and credit measures in guiding to pursue price stability directly. For policy to policy adjustments, and the implications of rely- feed through reasonably directly into prices, ing, instead, on various signals from financial prices and wages must adapt quickly to changing markets and the economy. I will conclude by conditions in goods, labor, and financial markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1990 In the United States, at least, such flexibility a desire to identify and minimize deviations from very likely has increased in recent years. Dereg- objectives. Intermediate indicators are used ulation of various industries, the shift away from partly in an attempt to shortcut or cross-check an industrial base characterized by relatively few the projection process and possibly to discipline large firms and large unions toward a service- policy, through prompting adjustments before based economy, and the greater international cumulative imbalances require more costly corintegration of markets for goods and services rections. These indicators may even be elevated probably have heightened effective competition to targets if they are considered sufficiently reliand hence the responsiveness of wages and able. As long as forecasts are subject to substanprices to various influences. tial error and real output paths are important, But the perfectly flexible classical economy monetary policymakers are likely to rely on still seems some way off. For whatever rea- indicators or targets intermediate between policy sons—long contracts, slowly changing expecta- actions and price-level effects. tions—the adjustments the central bank makes to It is in this area of intermediate indicators that the reserve base and to very short interest rates policy implementation has undergone its greatest still affect real interest and exchange rates and, in change in recent decades—an evolution that is turn, economic activity. We have seen this influ- likely to continue into the 1990s. Some indicaence at work in recent years, when the more tors, such as interest rates and exchange rates, rapid expansion of 1987 and 1988 and the slow- are elements in the transmission process, figuring down in 1989 have seemed traceable at least directly in spending and saving decisions. To the partly to the monetary policies that preceded extent the transmission of policy has changed, so them. too have the appropriate settings and weights for The lags between policy actions and price these types of indicators. Indicators in another consequences appear to remain long and com- class—including the money and credit aggregates plex, with implications for the path of output. A —may have little independent standing as variasingle-track policy response tied to inflation data bles with direct influence on spending and proalone probably will produce sizable swings in the duction; they may, instead, be the surface maneconomy. As a consequence, objectives for in- ifestations of complex interactions among flation are likely to have some side constraints savers, spenders, and intermediaries. Changes in having to do with real output. These side con- those interactions may call into question the straints may dictate policy reactions to incoming reliability of the relationships between the indiinformation on the course of the economy as well cators and ultimate policy objectives. as on prices, leading to adjustments to the desired path for inflation. If the linkages among policy, the economy, MONEY AND CREDIT AGGREGATES and prices were well enough understood, reasonably stable over time, and mostly free from In the United States we have seen changes both noise, they might be captured by a reliable em- in the monetary aggregate that is the preferred pirical model or perhaps by judgmental forecasts. target or indicator and in the weight that is placed Then the job of implementing policy might still be on money and credit measures in the conduct of straightforward: Policy adjustments, though per- policy. These shifts have reflected important haps not adhering to transparent rules of thumb, underlying developments in financial markets: could be calibrated from the model or judgmental changes in the characteristics of existing financial forecast, taking into account the inflation objec- instruments, the creation of new instruments, tives and output constraints of the authorities. and the blurring of distinctions among financial Inherently, all policy depends, at least implic- instruments generally. Among the factors behind itly, on projections that permit policymakers to these developments have been the removal of assess the implications of a course of action. A regulations that enforced the distinctions among reliance on intermediate indicators arises out of instruments and advances in technology that skepticism about forecasting exercises and out of have reduced the transaction costs of issuing and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Targets and Operating Procedures in the 1990s 3 buying a variety of financial claims. These forces specific collections of financial instruments have not only have been at work on the financial become increasingly arbitrary, and monetary or instruments issued in a given country, but also credit aggregates, however carefully delineated, have affected the relation of financial claims in are less likely to be stably related to spending or one country to those in another. income. This certainly is the case for short-run The effects of these forces on previously relationships; and it may also pertain, if to a distinct categories of assets are illustrated by a lesser extent, over the longer periods that are variety of developments in the seventies and relevant to the business cycle. eighties: Deregulation has blurred the distinc- The experience of the United States illustrates tion between deposits used for transactions and the erosion of the distinctions among various those used as a store of wealth; securitization types of claims, and points up the implications of has made loans much more like securities; in that erosion for the utility of traditional aggregathe wake of deregulation and brokering, retail tions of these claims as policy indicators. In the deposits and managed liabilities at depositories 1960s, policymakers monitored bank credit no longer are separate and distinct from one closely, but this aggregate was deemphasized another; the junk bond market has blurred debt when open market paper became a closer substiand equity; computers have permitted easy tute for bank loans as a source of funds for substitution between deposits and mutual businesses. In the 1980s, Ml was dropped as a funds; and the removal of controls on interna- target when deregulation blurred the line betional capital movements has meant that inves- tween it and M2, producing greater interest sentors can treat assets denominated in home cur- sitivity in its components and more variability in rency and those denominated in foreign its velocity. At the same time, the target range currency more interchangeably. for M2 was widened as the supply behavior of Moreover, as government regulation has be- banks and thrift institutions seemed to impart a come less confining, the decisions of suppliers of substantial short-run interest elasticity to that certain assets have become more important in aggregate as well. Moreover, substitution of debt determining the outstanding quantity of those for equity is one of the factors disturbing the assets. In the retail deposit markets, for example, established relation of the debt aggregate to decisions of depository institutions about the income. interest rates at which these instruments are Deregulation and the proliferation of new, offered affect the willingness of the public to hold highly substitutable claims also have reduced the them at given levels of income and market inter- effect of credit rationing as a channel for moneest rates. Moreover, deposit-pricing strategies tary policy. Deposit intermediaries now can appear to have changed as institutions have maintain access to funds for lending, and both adapted to deregulation, introducing substantial borrowers and lenders need depend less on paruncertainty, in the short run at least, into the ticular types of claims or intermediaries. relationship between the quantity of money and At present, with the restructuring of the savmovements in market rates and income. And ings and loan industry, these hypotheses about both supply and demand for individual financial the diminishing value of certain financial variaassets can be quite sensitive to small changes in bles and reduced credit-rationing effects are untheir own rates, relative to those on alternative dergoing an intriguing empirical test. The soluassets, given the multiplicity of close substitutes. tions to the problems of savings and loans are Internationally, the ability of capital to flow likely to entail fewer and smaller institutions, in freely across borders has broadened the choices what has been the country's key mortgage interof borrowers and lenders. As a consequence mediary. Other mortgage lenders will have to fill spending on the goods and services produced by the void left by this reduction in the industry's a particular country likely has become less de- size. On the deposit side, restructuring will alpendent on the volume of claims originated or most certainly restrain the expansion of M3, and held in that country. perhaps M2 as well, depending on how success- In these circumstances, the boundaries around ful the regulators are in beating down deposit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1990 offering rates and thereby raising the opportunity 1980s. Since, as the cliche has it, the long run is cost of holding M2. a collection of short runs, even short-run varia- Expectations about the effects of this restruc- tions in an aggregate may yield some information turing offer an instructive contrast to the dislo- on the long-run thrust of policy, though one may cations brought on by earlier episodes, when this be skeptical of the short-run inflation forecasts industry shrank through disintermediation in- produced by a model as simplified as P*. Transduced by Regulation Q. Although specific real lating between the short and the long runs is estate markets may be affected in the current unlikely to be simple, however, in part because situation, confidence in the capital markets to of the short-run interest elasticity imparted by rechannel funds appears to have allayed con- the supply behavior of depositories. For examcerns about major overall effects on the housing ple, 2Vi to 3 percent growth in M2 may be the market and on the macro economy. Spreads steady state associated with price stability, but, between mortgage interest rates and other rates in light of the complex interactions among have widened only a bit, a development that money, interest rates, and spending, gradual suggests that the demands of other investors for reductions may be far from the best way to mortgage instruments are elastic and that non- achieve this objective. Overall, money and credit price credit rationing is unlikely. Any damping of aggregates probably will continue to play an M2 and M3 in this process would reflect a shift in important role in policy in the 1990s; but that role the level of velocity, and would not be a precur- is more likely to be the supporting one of the late sor of lower spending. 1980s, keyed to sustained, appreciable deviations Although short-run variations in money and from long-term objectives, than the romantic credit may be of limited value in keying policy lead of the late 1970s and early 1980s, when adjustments in most circumstances, in certain relatively small month-to-month movements situations they may portend a serious distur- were allowed to influence reserve markets. bance in financial and goods markets, especially when interpreted together with interest rate developments. For example, the Federal Reserve INTEREST AND EXCHANGE RATES AND kept especially careful track of the monetary ECONOMIC AND PRICE DATA aggregates in the wake of the stock market collapse in October 1987 to ascertain whether As attention to the monetary aggregates has there were unusual demands for money and, if lessened, policy implementation has had to rely so, whether they might connote flight from other more on inferences from the price axis in the financial assets or from spending. In light of the financial markets and signals directly from the current situation in the thrift industry, unex- economy and from prices. The difficulties with pected movements in credit flows or in deposits attention to interest rate levels as intermediate will also be examined carefully. indicators of the effect of policy and the course of Over longer periods, the net result of market the economy are well known. They include difadaptations to supply and demand conditions for ferentiating nominal from real rates and distinfinancial assets may well be a stable ratio of guishing the effects on rates of shifting demands desired holdings of money to wealth or income. for money and credit in response to develop- Such stability is all the more likely now that ments in the economy from those caused by bank incentives to innovate around regulatory con- actions. Particular levels of nominal interest straints have been removed, a removal that has rates can be consistent with either accelerating or enhanced the value of persistent movements in decelerating inflation, depending on the relationmoney supply as policy signals. In this regard, ship of the real rate to its equilibrium level. In the the recently published study relating M2 and past, when short-term objectives for interest prices—the so-called P* model—was encourag- rates as the proximate targets for policy were ing. The study suggested that a reasonably robust combined with attention to the most recent ecolong-run relationship between money and prices nomic data, which respond to policy actions only has persisted despite the changes in M2 in the with a delay, too often the results were a policy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Targets and Operating Procedures in the 1990s 5 that tended to lag developments, moving initially ments abroad, as well as to short-run changes in both too little and too late and ultimately over- expectations or perceptions that may have little staying. to do with longer-run economic forces. More That danger remains, though it is one policy- generally, many asset markets appear to exhibit makers are aware of. It may be reduced to an more volatility than can be explained by changes extent by the recent emphasis on a variety of in fundamental determinants of asset prices. Unfinancial market variables, such as yield curves der these circumstances, adjusting monetary poland exchange rates, that incorporate market ex- icy in response to short-run variations in individpectations about future levels of real interest ual interest rates or in their relative levels or in rates and inflation. In particular, these variables foreign exchange rates may in the end destabiare likely to send clear signals if policy is per- lize, rather than stabilize, the economy. ceived to be deflationary or inflationary because But the most serious deficiency of these indiit is seen as keeping real interest rates substan- cators is that they provide little, if any, guidance tially above or below equilibrium levels. In this for achieving specific inflation objectives. At regard they help to address one of the serious best, the exchange rate would anchor the home deficiencies of emphasis on nominal rate levels. inflation rate over time to those of major trading Developments in financial markets may have partners and competitors. Adjusting policy in enhanced the usefulness of such indicators in accord with the market's interest rate expectarecent years. The internationalization of financial tions—that is, operating to flatten the yield flows and the increasing interdependence of na- curve—would tend only to lock in the expected tional economies would of themselves naturally rate of inflation built into that curve. lend the exchange rate greater prominence in In theory, policymakers could achieve their policy deliberations. But beyond this, the prolif- inflation objectives by designing a course for the eration of financial instruments and the greater economy that would bring about the desired use of futures and options markets for risk shift- pressures on resources and on the rate of change ing probably have reduced the influence of sec- of prices. In practice, doing that would require an tor-specific supply and demand conditions on accurate estimate of the economy's potential, a interest and exchange rates and have increased thorough understanding of the transmission and the response of asset prices to underlying funda- inflation processes, and reliable forecasts of the mentals, including price expectations. These response of the economy to monetary policy and changes have taken place as economic analysis other forces. Such a policy would necessarily has placed greater emphasis on the influence of involve tolerating movements in exchange rates forward-looking expectations on economic deci- and changes in the slope of the yield curve in the sions. As a consequence, policymakers have transition period as output was adjusted relative become increasingly sensitized to the importance to potential. In general, a central bank must take of information that may be embedded in interest account of the real economic effects of its acand exchange rate relations. tions; but it is in both economic and political Several caveats are in order. First, like nomi- trouble when specific goals for the economy nal interest rates, yield curves and exchange become the enduring focus of its attention. rates reflect many influences besides judgments Among other things, the focus on the real econabout the course of the economy and prices. For omy in the context of an active discretionary example, a yield curve that is downward-sloping, policy probably accentuates the well-known especially at the shorter maturities, may simply temptation to cheat on the side of a little more embody an expectation that the Federal Reserve output. is about to ease, not necessarily that such an In this sense, the monetarists are right: Policy easing will be stabilizing to the economy. And reaction and implementation need something to yield curves still may respond to changes in keep these temptations at bay. Unfortunately, relative supplies of various kinds of paper as well the monetary aggregates no longer seem to fulfill as to shifting perceptions of liquidity risk. Like- that requirement except in a long-term context, wise, the exchange rate is subject to develop- in which they may indeed check the worst mis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1990 takes and excesses. Moreover, as I indicated at may not be very useful. Realistically, policy the outset, simple reaction rules linked to broad cannot afford to lose any information about the price measures also seem to fall short in the face complex relationships in the economy. Signals of uncertainties about lags and side constraints from financial and foreign exchange markets, and on output. from the domestic economy and foreign econo- Commodity prices have been offered to fill this mies, all need to be filtered for clues about where gap. Because they are unconstrained by long- the economy and the price level are headed term contracts, commodity prices are said to relative to the objectives for policy. Casting the react more quickly to fundamental develop- net wide is especially important when the underments, short-circuiting some of the lags, and lying relationships among financial and economic therefore the cyclical uncertainties, inherent in variables seem to be evolving in ways that are broad price measures. While commodity prices, not easy to predict. too, contain valuable information for the policy- It seems likely that operations by the monetary maker, whether they belong at the center of authority will continue to involve frequent policy policy implementation remains to be proven. adjustments in response to new information. There are the familiar issues of accounting for Such adjustments need not connote unsteadiness supply shocks, choosing the market basket, and of purpose, or an excessively activist hand on the assessing the reliability of such prices as fore- wheel, or an attempt to "fine tune" the economy casters of the aggregate price level. In addition, in the sense of trying to achieve an outcome with establishing a target level for the commodity unrealistic precision. Instead, they may be rabasket is a problem. As the British discovered in tional responses to changing indications about the 1920s, this is not a trivial exercise—and it is economic trends contained in the new data, the level that needs to be tied down. Movements which prompt small but frequent adjustments in in commodity prices cannot be interpreted with- instrument variables to keep the economy and out reference to an equilibrium level. Rising prices on a track consistent with ultimate objecprices might suggest an easy policy if they were tives. occurring above equilibrium. But they might This type of operating system does involve suggest that policy was tight if commodity prices difficulties, among which is filtering signal from had been driven below their equilibrium level by noise. Given the difficulties of interpreting new that policy; in that case, increases in commodity data and the possibility of later revisions, unnecprices would be needed to equalize returns with essary policy adjustments likely will be made. As the high real rates on financial assets. Ultimately, long as policy remains flexible and mistakes are one suspects, commodity prices will take their quickly recognized and corrected, unnecessary place in that eclectic mix of indicators that have adjustments should remain a minor problem. keyed policy recently and that are likely to Deviations from the optimal policy path that are continue to do so in the 1990s. kept small and short-lived will have little effect on the ultimate outcome. The greater danger of a policy that relies on POLICY REACTIONS AND LONG-RUN frequent adjustments of nominal interest rates to OBJECTIVES incoming data is insufficient attention to long-run policy objectives. I have already noted the ten- As the 1990s open, then, policymakers are react- dency in the past for policy that involves this ing to information from a wide variety of sources, type of procedure to react too little and too late. making frequent adjustments of the stance of But that tendency has not always been symmetpolicy in reserve markets when the evidence rical. Emphasis on the level of nominal interest suggests that the existing posture is inconsistent rates in connection with information on the real with their longer-run objectives. No one indica- economy has at times tended to impart an inflator, nor any one small set of indicators, domi- tionary bias to policy. Given the lag between nates this policy-adjustment process. Indeed, the policy and the price level, such a focus in the whole intermediate indicator/target paradigm context of an active discretionary policy may Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Targets and Operating Procedures in the 1990s 7 lead to attempts to achieve higher output levels The second factor underlying Federal Reserve than are consistent with stable prices. policy that imposes discipline is the heightened In that regard, recent experience is mildly sensitivity of expectations-driven variables, inencouraging. Though inflation remains well cluding yield curves, exchange rates, and comabove the long-term objective of price stability, it modity prices. At a minimum, these variables has accelerated only a little even as the U.S. help the policymaker judge when market particeconomy has enjoyed an unprecedented peace- ipants consider that conditions are ripe for sigtime expansion. Many factors account for this nificant movements in inflation rates. Thus, from performance, including good fortune and greater these indicators policymakers may be able to flexibility in price and wage setting. infer the credibility that the markets accord their But monetary policy may also have played a anti-inflation objectives. role. Leaning fairly hard against the wind and The last such factor is the continued attention being willing to shift policy promptly when the to the monetary aggregates. Although they may wind shifts appear to have forestalled the buildup not be good guides to short-run policy, the agof excesses and imbalances, so that the economy gregates appear to maintain their longer-run rehas remained in the neighborhood of its potential lationships to spending and inflation. Sustained and inflation has stayed within a fairly narrow very rapid or very slow growth in the aggregates range. And to the extent that this outcome has has continued to play a role in keying policy reinforced the credibility of the Federal Reserve's adjustments. anti-inflation policy, it may, by restraining infla- Taken together, these factors have tended to tion expectations, by itself have contributed to limit the distance and the duration of deviations price performance that has been better than ex- of monetary policy from actions consistent with, pected. The factors underlying this behavior by at the least, its not straying far from its long-run the Federal Reserve include a number of the objective. They have imposed some discipline on elements previously discussed, no one of which the task of adjusting reserve conditions and nomseems adequate to the task of exerting longer- inal short-term interest rates. term discipline within the current policy regime. As the 1990s begin, the challenge to policy is to First is some attention to movements in price strengthen the elements that supply long-run indexes, despite the inherently backward-looking discipline, without sacrificing the flexibility to nature of these indexes. The monetary authority adapt policy to changing conditions and to conhas clearly stated its intention to achieve price sider the consequences of policy actions for stability and has emphasized the importance it output and employment. Sufficient attention to places on this objective. Although it has neither reputation, to market expectations of inflation, set a timetable nor established an automatic and to trend money growth should help to ensure disciplining device, it has created for itself the progress toward price stability in coming years. burden of explaining sustained deviations from We should make certain that in ten years, were intentions. Such deviations would raise ques- we to consider monetary policy in the new centions about its true intentions that would put an tury, we would be able to report that the decade authority concerned about its reputation on the of the 1990s, like the 1980s, ended with inflation defensive. lower than when it began. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Treasury and Federal Reserve Foreign Exchange Operations This quarterly report, covering the period August cent against the German mark and Vi percent through October 1989, provides information on against the Canadian dollar while rising 4lA per- Treasury and System foreign exchange opera- cent against the Japanese yen and 5Vi percent tions. It was presented by Sam Y. Cross, Man- against the British pound. ager of Foreign Operations of the System Open During the three-month period, the U.S. mon- Market Account and Executive Vice President in etary authorities sold a total of $5,871 million charge of the Foreign Group of the Federal between August and early October, of which Reserve Bank of New York. George G. Bentley $3,289 million was against Japanese yen and was primarily responsible for preparation of the $2,582 million was against German marks. These report.1 operations were conducted in coordination with foreign central banks, (table 1). During the first half of the August-October reporting period, the dollar came under renewed upward pressure in the face of strong investment THE DOLLAR 'S RISE FROM EARLY AUGUST inflows. In response, the U.S. monetary author- TO MID-SEPTEMBER ities intervened to sell dollars in keeping with Group of Seven (G-7) policy commitments to As the period opened, market participants were foster exchange rate stability. The dollar reached still apprehensive that the U.S. economy might its highs of the period in mid-September. It then be slipping into recession. In the final days of moved sharply lower after the G-7 statement of July, evidence was widespread that the Federal September 23 expressed concern over the dol- Reserve had responded to a slackening of ecolar's rise, and persistent coordinated intervention operations followed. Toward the end of the pe- 1. Federal Reserve reciprocal currency arrangements riod, the dollar traded in a relatively narrow Millions of dollars range. Demand for dollars moderated as a result of a narrowing of interest rate differentials favor- Amount of Institution facility, ing dollar assets and of concerns over volatility in October 31, 1989 U.S. equity markets. However, investment inter- Austrian National Bank 250 est continued to provide some support at lower National Bank of Belgium 1,000 Bank of Canada 2,000 levels. National Bank of Denmark 250 Bank of England 3,000 The dollar ended the August-October report- Bank of France 2,000 ing period Vi percent higher on a trade-weighted Deutsche Bundesbank 6,000 Bank of Italy 3,000 basis in terms of other Group of Ten (G-10) Bank of Japan 5,000 currencies as measured by the staff of the Board Bank of Mexico 700 of Governors. Against individual currencies, Netherlands Bank 500 Bank of Norway 250 however, the dollar's performance varied consid- Bank of Sweden 300 Swiss National Bank 4,000 erably. On balance, the dollar declined VA per- Bank for International Settlements Dollars against Swiss Francs 600 Dollars against other authorized European 1. The charts for the report are available on request from currencies 1,250 Publications Services, Board of Governors of the Federal Total 3300,,110000 Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

9 nomic growth and price pressures by easing resist upward pressure on the dollar. After monetary policy, and the dollar declined. On mid-September, moreover, with the approach- August 1, Chairman Greenspan confirmed in ing G-7 meeting in Washington on September Senate testimony that the Federal Reserve had 23, the market became increasingly wary that modestly eased its stance the previous week. On more aggressive official action might be introthe same day, several leading banks cut their duced to curb the dollar's strength, either prime lending rates. The perception thereby through intervention or through monetary polstrengthened in the market that U.S. interest icy adjustments. The dollar then drifted down rates were steadily declining and that favorable to close at DM1.9520 and ¥146.00 on Septemdollar interest rate differentials would continue to ber 22, the Friday before the weekend G-7 narrow. The dollar then moved to its lows for the meeting. month of August of DM1.8430 against the mark • Accordingly, between August 1 and Septemand ¥135.50 against the yen on August 2. ber 22, the U.S. monetary authorities sold a total The dollar's softer tone was short-lived. Eco- of $1,452 million against marks and $1,699 milnomic data released in early August alleviated lion against yen. The operations became more the market's earlier concerns regarding the se- frequent as upward pressure on the dollar intenverity of an economic slowdown. The prospects sified. During the first ten days of August, the of another imminent easing by the Federal Re- U.S. authorities intervened only once, selling $70 serve appeared to fade after employment data million against yen. During the remainder of released on August 4 showed a sharp upward August, the U.S. monetary authorities sold dolrevision in June nonfarm payrolls and continued lars on six days for a total of $425 million against employment growth for July. The release of marks and $525 million against yen. The authorfigures on August 11 showing buoyant retail sales ities entered the market more frequently after the in July made the possibility of an easing appear beginning of September, intervening on eleven of even less likely. In addition, the monthly U.S. the fifteen business days leading up to the G-7 trade reports released in both August and Sep- meeting to sell a total of $1,027 million against tember suggested that the U.S. trade perfor- marks and $1,104 million against yen. mance was continuing to improve. In this environment, commercial and investment demand for dollars revived, and the dollar DOLLAR DEMAND MODERATES AFTER THE was buoyant through mid-September. On Septem- LATE SEPTEMBER G-7 MEETING ber 15, after the announcement that the July U.S. trade deficit had narrowed unexpectedly to $7.58 After their meeting on Saturday, September 23, billion, the dollar surged briefly to its highs of the the G-7 finance ministers and governors issued a three-month period of DM2.0032 and ¥148.98, up statement concluding, among other things, that roughly IVi percent and 83/4 percent respectively the dollar's rise in recent months was inconsisfrom the closing rates of the previous reporting tent with longer-run economic fundamentals and period. At these levels, the dollar was trading near that a further rise of the dollar above thenthe highs reached earlier in the year. Later that current levels or an excessive decline could same day, when it appeared that the dollar would adversely affect prospects for the world econnot move any higher, dealers began to take profits omy. The ministers and governors also exon long-dollar positions, triggering stop-loss or- pressed their intention to cooperate closely in ders, and a sudden decline in the dollar ensued. exchange markets. Although sentiment toward the dollar remained On the strength of the G-7 statement and positive for quite a while afterwards, the episode official intervention to reinforce that statement, revealed a vulnerability for the dollar at these the dollar moved lower in Asian trading on higher levels. Monday, September 25. The fact that the U.S. During much of September, the U.S. mone- monetary authorities, along with others, were tary authorities again intervened in coordina- selling dollars in the Tokyo market sent a signal tion with those of several other countries to of the firmness of the G-7 resolve. In the days Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1990 immediately after the statement, the G-7 mone- activity was sluggish enough to warrant a new tary authorities persisted with their intervention. move to lower U.S. interest rates. During the By October 2, the dollar had declined to second week of October, the federal funds rate DM1.8650 and ¥138.60, about 5 percent lower moved lower, and by midmonth, market particithan its closing levels on September 22. For the pants concluded that the Federal Reserve had next eight business days, the dollar was again indeed eased. well bid, showing a tendency to recover from its Although interest rate differentials favoring the October 2 levels. Subsequently, as the authori- dollar had been narrowing throughout most of ties continued to intervene to resist the dollar's 1989 without any apparent negative effect on rise, market participants appeared more recon- dollar exchange rates, the moves that occurred in ciled to the possibility that the dollar's uptrend October were sufficient to induce a moderation in might finally have been broken. In total, from capital inflows to the United States. By this time, September 25 through October 12, the U.S. interest rates in Germany had risen to levels that monetary authorities sold $1,130 million against were almost as high as those in the United States. marks and $1,590 million against yen, operating At the same time, as asset prices both in the on most days in that period. United States and in foreign markets continued to adjust to the changing interest rate and economic assessments, questions arose about the THE LATTER HALF OF OCTOBER continued strength of certain capital markets— markets that had attracted investors because of As mid-October approached, upward pressure either high yields or the prospect of sharp capital on the dollar lessened. For the balance of the gains. Against this background, the sharp decline three-month period, the dollar remained below in U.S. equity prices on October 13 revived the mid-September highs. concerns that heavy foreign investment in the One factor contributing to the easing of up- United States might be discouraged and that the ward pressure was that interest rate differentials Federal Reserve might ease even more quickly or favoring the dollar narrowed further in October aggressively than previously supposed. as a result of interest rate increases abroad. The October 17 release of data showing a sharp German market interest rates had begun edging deterioration in the U.S. trade position in August higher in late September as dealers anticipated also served to reduce upward pressure on the possible increases in the Bundesbank's official dollar, as it highlighted the dangers of a further rates. On October 5, the Bundesbank announced rise in the U.S. currency and reminded the an increase of a full 1 percentage point in both its market of the continuing need to correct the discount and Lombard rates, surprising the mar- current account imbalances. ket with the magnitude of the increase. The Although the dollar's overall tone remained British, French, Swiss, Belgian, Dutch, Danish, considerably softer late in the period, the dollar Irish, and Austrian monetary authorities fol- continued to receive some support from investlowed by raising their official rates. The following ment demand, particularly by Japanese entities, week, the Bank of Japan surprised the market by through the end of the three-month period. The raising its discount rate Vi percentage point on dollar closed the quarterly period at DM1.8415 October 11, and short-term market interest rates against the mark and ¥142.85 against the yen. in Japan increased approximately 75 basis points With the dollar generally trading more narwithin the span of a week. rowly in the latter part of the reporting period, Around this time, market participants also markets tended to focus more on developments began to expect favorable interest rate differen- abroad, and the dollar's performance against tials to diminish further because of an easing of individual currencies varied considerably. The monetary policy in the United States. Many dollar's decline against the mark was particuobservers viewed economic reports, particularly larly pronounced, as the German currency benthe September U.S. employment data released efited not only from the rise in German interest on October 6, as a sign that U.S. economic rates but more broadly from a growing sense of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 11 2. Drawings and repayments by foreign central banks1 Millions of dollars; drawings or repayments (—) Outstanding as Outstanding as Central bank Amount of of July 31, August September October of October 31, facility 1989 1989 Under reciprocal currency arrangements with the Federal Reserve System 770000..00 00 770000..00 700.0 Under special swap arrangements with the Federal Reserve System 112255..00 00 84.1 84.1 1. Data are on a value-date basis. 2. Drawn as part of the $2,000 million near-term credit facility established on September 21,1989. confidence in Germany's economic perfor- Against sterling, the dollar traded relatively mance and prospects. Buoyant demand, high firmly throughout most of the three-month pelevels of capacity utilization, and reports of riod as market participants became increasingly high wage demands from German labor unions concerned about the outlook for the U.K. econseemed to indicate that interest rates would omy. Despite the fact that high British interest remain firm and economic growth strong. The rates were raising worries about a recession, process of reform just beginning to unfold in many analysts felt that the progress in curbing Eastern Europe and the inflow of East German inflation and redressing external imbalances immigrants were seen to promise longer-term had been too slow. Market uncertainty regardbenefits for the West German economy, al- ing the future direction of U.K. economic polthough there was considerable uncertainty icy was compounded by the perception that the about the short run. U.K. authorities were divided on basic issues. Against the yen, conversely, the dollar showed For the three months as a whole, the U.S. a somewhat greater tendency to rise as actual monetary authorities sold $5,871 million. The and anticipated Japanese capital outflows kept U.S. Treasury's Exchange Stabilization Fund the yen under downward pressure against most (ESF) and the Federal Reserve System particiother major currencies. Japanese investor de- pated equally in these operations. To finance a mand for dollars, which had helped support the portion of its share, the ESF "warehoused" dollar throughout 1989, reflected a high Japanese $3,000 million equivalent of foreign currencies domestic saving rate, ample domestic liquidity, with the Federal Reserve, bringing the total of and a perception that domestic assets were rela- warehoused funds to $7,000 million equivalent. tively expensive. The United States was seen as In other operations, on September 21, the having a good long-term investment environment Federal Reserve System and the ESF, together and as providing sufficient opportunities to ab- with the Bank for International Settlements sorb a large pool of Japanese savings. (acting for certain central banks) and the Bank 3. Drawings and repayments by foreign central banks under special swap arrangements with the U.S. Treasury1 Millions of dollars; drawings or repayments (-) Outstanding as Outstanding as Central bank drawing Amount of of July 31, August September October of October 31, on the U.S. Treasury facility 1989 1989 Bank of Mexico2 425.0 0 ... 384.1 . . . 384.1 Bank of Bolivia3 100.0 100.0 . . . (-100.0 ... . . . 1 1 75.0 . . . 75.0} 1. Data are on a value-date basis. 3. The facility, which was established on July 11, 1989, was renewed on 2. Represents the ESF portion of $2,000 million near-term credit facility. September 15,1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1990 4. Net profits or losses (-) on U. S. Treasury and million from the Federal Reserve's portion and Federal Reserve current foreign exchange $384.1 million from the ESF's portion of the operations1 facility (table 3). Millions of dollars Also during the period, Bolivia repaid in full on U.S. Treasury September 15 its $100 million outstanding com- Federal Exchange Period and item Reserve Stabilization mitment on the short-term financing facility es- Fund tablished with the ESF. Subsequently, the Trea- May 1,1989-July 31,1989 sury agreed to provide a new $100 million Realized ...000 777777...333 facility, and on September 22, Bolivia drew $75 Valuation profits and losses on outstanding assets million (table 3). and liabilities as of July 31, 1989 111,,,000444555...555 777222444...222222 As of the end of October, cumulative book- August 1,1989-October 31,1989 keeping or valuations gains on outstanding for- Realized ...000 111111999...666 eign currency balances were $1,366.5 million for Valuation profits and losses on outstanding assets the Federal Reserve and $870.3 million (the secand liabilities as of October 31,1989 111,,,333666666...555 888777000...333 ond figure includes valuation gains on warehoused funds) for the ESF (table 4). These valu- 1. Data are on a value-date basis. 2. This figure takes into account warehoused funds as of July 31, 1989. ation gains represent the increase in the dollar Data, which were originally reported in "Treasury and Federal Reserve For- value of outstanding currency assets valued at eign Exchange Operations," Federal Reserve Bank of New York, Quarterly Review, vol. 14 (Summer 1989), table 3, p. 72, excluded valuation profit on end-of-period exchange rates, compared with the warehoused funds. The amount of valuation profits including warehoused rates prevailing at the time the foreign currencies funds as of July 31,1989, was $724.2 million. were acquired. The Federal Reserve and the ESF regularly of Spain, agreed to provide a short-term credit invest their foreign currency balances in a vafacility totaling $2,000 million to the Bank of riety of instruments that yield market-related Mexico. The Federal Reserve's share in the rates of return and that have a high degree of facility was $825 million, of which the first $700 quality and liquidity. A portion of the balances million was to be provided under the existing is invested in securities issued by foreign govreciprocal swap line with Mexico and the re- ernments. As of the end of October, holdings of maining $125 million under a separate swap such securities by the Federal Reserve agreement (table 2). The ESF's share was $425 amounted to $6,746.5 million equivalent, and million, provided under a special swap arrange- holdings by the Treasury amounted to the ment. On September 25, Mexico drew $784.1 equivalent of $7,475.7 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

13 Industrial Production Released for publication November 14 effects, the total index would have been nearly unchanged in October, continuing its recent slug- Industrial production fell 0.7 percent in October gish trend. At 141.4 percent of the 1977 average, after having been unchanged in September (re- the total index in October was 1.4 percent higher vised). The October decline largely reflected a than it was a year earlier. Manufacturing output strike in the aircraft and parts industry and some declined 0.8 percent, and capacity utilization in disruptions in production, particularly in com- manufacturing, at 82.8 percent, was about 1 puters and related parts, resulting from the re- percentage point below the September level. cent earthquake in California. Excluding these Detailed data for capacity utilization are shown Ratio scale, 1977=100 All series are seasonally adjusted. Latest series: October. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 1990 1977 = 100 Percentage change from preceding month Percentage change, GGrroouupp 1989 1989 Oct. 1988 to Oct 1989 Sept. Oct. June July Aug. Sept. Oct. Major market groups Total industrial production 142.4 141.4 .3 -.1 .4 .0 -.7 1.4 Products, total 152.3 151.0 .5 -.4 .3 .0 -.9 2.0 Final products 150.8 148.9 .5 -.7 .5 -.1 -1.2 1.7 Consumer goods 138.9 138.5 .6 -.9 .3 -.1 -.3 1.6 Durable 128.0 124.9 -.3 -2.7 1.2 -.7 -2.4 -3.4 Nondurable 143.0 143.6 .9 -.3 .0 .1 .4 3.3 Business equipment 169.4 165.9 .3 -.6 .7 -.2 -2.1 3.5 Defense and space 182.0 176.2 .2 .5 .2 -.2 -3.2 -4.2 Intermediate products 157.7 158.2 .4 .4 -.2 .4 .3 2.7 Construction supplies 141.6 142.4 .7 .7 -.8 .4 .5 1.7 Materials 128.9 128.2 -.1 .4 .5 .0 -.5 .6 Major industry groups Manufacturing 148.8 147.6 .4 -.1 .4 -.2 -.8 1.6 Durable 147.3 145.1 .2 -.4 .6 -.3 -1.5 .4 Nondurable 150.8 151.0 .7 .2 .1 -.1 .1 3.2 Mining 104.8 104.9 -.6 .6 .6 2.1 .0 1.7 Utilities 114.6 115.2 -1.2 -.3 -.7 1.2 .5 1.2 NOTE. Indexes are seasonally adjusted. separately in "Capacity Utilization," Federal have been about unchanged; manufacturing Reserve monthly statistical release G.3. equipment and business vehicles remained weak, In market groups, output of consumer goods but most other sectors posted gains. declined 0.3 percent in October as the production Production of construction supplies rose in Ocof motor vehicles, particularly light trucks, was tober, but has changed little, on balance, since the again curtailed, and the output of appliances fell beginning of the year. Output of materials fell 0.5 sharply. Auto assemblies decreased to an annual percent in October. Production of parts for conrate of 6.7 million units from the rate of 6.8 million sumer durables declined sharply again, owing to units in September. Most of the 0.4 percent gain in the weakness in motor vehicles; the strike also nondurable consumer goods resulted from a redirectly curtailed the production of aircraft parts. bound in the output of consumer chemical prod- Output of chemical materials was reduced for the ucts that had fallen sharply in September. Busithird successive month; some of the October ness equipment fell more than 2 percent in decline resulted from the explosion of a major October, reflecting the aircraft strike and the plant in Texas. Energy materials were about unestimated effects of the earthquake. Excluding changed as coal production rose again, but crude these special factors, business equipment would oil extraction declined. In industry groups within manufacturing, pro- Total industrial production—Revisions duction of durables fell 1.5 percent in October, Estimates as shown last month and current estimates owing mainly to the large drop in transportation equipment. In addition, output of primary metals, Percentage change Index (1977=100) from previous particularly nonferrous metals, and fabricated MMoonntthh months metal products, fell further. Among nondurables, output of both textiles and apparel remained Previous Current Previous Current weak, but paper production, which has changed July 142.0 141.9 .0 -.1 little, on average, in recent months, rose in Octo- Aug 142.4 142.4 .3 .4 Sept 142.3 142.4 -.1 .0 ber. Output of mining was flat in October, while Oct 141.4 -.7 production at utilities rose 0.5 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 Announcements FEDERAL RESERVE BANK FEE SCHEDULES The Consent Order is in settlement of enforce- FOR 1990 ment proceedings instituted by the Board because of alleged unsafe and unsound practices The Federal Reserve Board announced on No- and alleged violations of law and regulation that vember 2, 1989, the 1990 fee schedules for ser- generally arose out of the receipt of deposits by vices provided by the Reserve Banks. The ma- representative offices of the National Mortgage jority of the 1990 fees are the same as those Bank in New York and in three other states. currently imposed, and they generally become The National Mortgage Bank of Greece, witheffective January 1, 1990. out admitting any of the allegations in the pro- The fee schedules apply to check collection, ceeding, agreed to pay a fine of $2 million. The automated clearinghouse transactions, wire National Bank of Greece, without admitting any transfer of funds and net settlement, definitive of the allegations in the proceeding, agreed to safekeeping, noncash collection, book-entry se- pay a fine of $125,000. curities, and electronic connections to the Federal Reserve. The 1990 fee schedules are avail- The Federal Reserve Board announced on able from the Reserve Banks. October 31, 1989, the issuance, on October 30, In 1990, total costs for priced services, includ- 1989, of an Order of Prohibition against Bruce F. ing the private sector adjustment factor (PSAF), Dailey, the former chairman of the board of are projected to be $750.6 million. Total revenue directors of the First Security Bank of Missoula, is estimated at $755.9 million, resulting in a 100.7 Missoula, Montana, in settlement of an enforcepercent recovery rate. The fees for 1990 are ment action instituted against him. based on total costs, including the PSAF but In an enforcement proceeding, the Board conexcluding special project costs. tended that Mr. Dailey misappropriated at least At the same time, the Board approved the 1990 $100,000 from the bank, while he was the chair- PSAF for Reserve Bank priced services of $79.4 man of its board, through the use of false loan million, an increase of $9.7 million, or 13.9 documents. Without admitting any allegations percent, from the $69.7 million targeted for 1989. made by the Board, Mr. Dailey consented to the The PSAF is an allowance for the taxes that issuance of the Order of Prohibition. Mr. Dailey would have been paid and the return on capital is henceforth prohibited from participating, inthat would have been provided had the Federal cluding serving as an officer, director, or em- Reserve's priced services been furnished by a ployee, in any manner in the conduct of the private business firm. affairs of any financial institution supervised by a federal financial institutions supervisory agency without the approval of the appropriate federal ENFORCEMENT PROCEEDINGS: banking agencies. ISSUANCE OF FINAL ORDERS PROPOSED REVISIONS The Federal Reserve Board announced on Sep- TO THE STAFF COMMENTARIES tember 25, 1989, the issuance of a Consent ON REGULATIONS E AND Z Cease and Desist Order and Consent Assessment of Civil Money Penalty as to the National The Federal Reserve Board issued for public Bank of Greece and the National Mortgage comment on November 16, 1989, proposed revi- Bank of Greece. sions to its staff commentaries to Regulation E Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 1990 (Electronic Funds Transfer) and to Regulation Z ERRATUM: CHART IN BULLETIN ARTICLE (Truth in Lending). Comment is requested by January 19, 1990. In the leading article for the December 1989 Bulletin, "The Formation of Private Business Capital: Trends, Recent Developments, and PROPOSED ACTION Measurement Issues," the source note for chart 3 on page 778 was inadvertently omitted. The The Federal Reserve Board announced on No- source for the data in the chart is the Bureau of vember 22, 1989, that it will seek public comment Labor Statistics. shortly on proposed transition capital standards for state member banks and bank holding companies through the end of 1990. SYSTEM MEMBERSHIP: ADMISSION OF STATE BANKS CHANGE IN DATABASE USED FOR The following state banks were admitted to mem- COMPILING THE STATISTICAL APPENDIX bership in the Federal Reserve System during the TO THE BULLETIN period September 1 to October 31, 1989: In the December 1989 issue of the Bulletin, some Illinois of the series in the statistical appendix, "Finan- Green Rock Henry County Bank cial and Business Statistics" beginning on page Michigan A3, were converted to a new database that uses Fraser State Bank of Fraser a different software package. The new software Hamtramck Bank of Commerce facilitates more precise computation of weekly, Minnesota monthly, quarterly, and yearly averages. Be- Albert Lea Security Bank Minnesota cause of the changes in averaging techniques, Oklahoma some small discontinuities will occur between Lawton Citizens Bank current data that are stored in the new system and previously published data that were produced by the old system. The following tables have recently been converted to the new system: 1.33, 1.44, 1.52-1.60, 2.10, 2.12, 2.13, 3.10, 3.11, 3.15-3.20, 3.22-3.25, 3.27, 3.28, and 4.30. Other tables had already been converted and were announced in the April 1989 Bulletin on pages 288-89. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

17 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 3, 1989 turing, factory utilization edged further below its January peak, partly as a result of additional Domestic Policy Directive declines in primary processing industries, such as paper and chemicals, where utilization had The information reviewed at this meeting sug- been very high. gested that economic activity continued to ex- Consumer spending rose substantially in Aupand at a moderate pace in the third quarter and gust, following a July increase that was somethat rates of resource utilization remained at what larger than the sluggish gains of previous relatively high levels. Aggregate final demand months. Much of the August pickup reflected a appeared to be well sustained by a pickup in surge in outlays for cars and light trucks, but consumption at a time of somewhat reduced gains in spending for goods and services other growth in business fixed investment. At the same than motor vehicles also appeared to be running time, price inflation had slowed, in large part somewhat above the relatively sluggish pace for because of a steep drop in energy costs and a the second quarter. Housing starts in July and continuing decline in prices of non-oil imports; August were slightly higher than their secondwage data evidenced no deviation from recent quarter average, and sales of new homes picked trends. up noticeably in July. However, building per- Growth in total nonfarm payroll employment mits had shown no discernible trend in recent slowed noticeably in July and August from the months. pace of the second quarter. Nevertheless, Recent indicators of business capital spending adjusted for the depressing effects of strike ac- suggested somewhat slower growth in the third tivity, job gains remained appreciable on bal- quarter after a substantial increase in the first half ance. Hiring was brisk in construction, trade, of the year. In July and August, shipments of and services; in manufacturing industries, nondefense capital goods excluding aircraft were though, employment levels generally held steady only a little above the second-quarter level, and or fell a bit, apart from temporary fluctuations in orders data suggested a further slowing in growth the auto industry. The civilian unemployment of spending in coming months. In July, office rate remained around 5lA percent. building remained a notable area of weakness in Industrial production rose in August, and revi- nonresidential construction and partially offset sions for earlier months suggested that the ex- another strong rise in outlays for industrial strucpansion of production had not been as weak as tures. Inventory investment in manufacturing previously estimated. Much of the August gain moderated in August after a sizable increase in reflected a rebound in automobile production July, with much of the increase in both months after three months of decline and a pickup in coal occurring at aircraft firms. In July, stocks also mining as striking coal miners returned to work. rose markedly at manufacturers of primary met- Output of consumer goods other than autos als and of many types of machinery; the buildup edged down in August with small but widespread at these industries, like that at aircraft firms, was declines in nondurable goods. Despite a sizable concentrated in work-in-process. Excluding mojump in operating rates for coal mining, total tor vehicles and aircraft, manufacturing stocks industrial capacity utilization was unchanged in remained at relatively low levels compared with August at a relatively high level. In manufac- shipments. At the retail level, increases in inven- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 1990 tories slowed in July and imbalances with sales meeting changes in reserve conditions would remained limited. continue to be given to the inflation outlook. The nominal U.S. merchandise trade deficit Slightly greater reserve restraint might, or recorded a further decline in July relative to slightly lesser reserve restraint would, be accept- June and to the average for the second quarter able in the intermeeting period depending on as a whole. Exports in July fell below their progress toward price stability, the strength of strong June level and were little changed from the business expansion, the behavior of the monthe second-quarter average. While most catego- etary aggregates, and developments in foreign ries of exports fell, deliveries of civilian aircraft exchange and domestic financial markets. The increased sharply. Imports registered a further contemplated reserve conditions were expected decline in July, as decreases in most categories to be consistent with growth of M2 and M3 over of non-oil goods outweighed a small rise in the the period from June through September at anvalue of oil imports. Economic growth in the nual rates of about 9 and 7 percent respectively. major foreign industrial countries slowed Reserve conditions remained essentially unsharply in the second quarter from the very changed over the period since the August meetrapid rate of the first quarter, but this pattern ing. Adjustment plus seasonal borrowing averappeared to be due largely to special factors aged about $550 million for the two full reserve rather than to a slackening of the underlying maintenance periods since the meeting, and fedpace of activity. eral funds traded mostly in the narrow range Producer prices of finished goods declined in around 9 percent that had prevailed since late August for the third consecutive month, reflect- July. With federal funds rates steady and ecoing a further large drop in consumer energy nomic data released over the intermeeting period prices; for the July-August period, price in- generally in line with market expectations, other creases for nonfood, non-energy finished goods interest rates changed little on balance over the moderated from the pace of earlier months of the intermeeting period. Some softening in interest year. At earlier processing stages, prices of in- rates took place through mid-September, owing termediate materials other than food and energy at least partly to a market view that an easing of edged down further in August and had registered monetary policy might be in the offing given the little net change over the previous six months, strengthening dollar, but when the dollar subsewhile prices of crude nonfood materials other quently declined against other G-10 currencies, than energy turned up after four months of interest rates generally rebounded. Most stock declines. Consumer prices were unchanged in market indexes reached record highs in early August following a small increase in July. Sharp September but partially retraced their increases reductions in energy prices and smaller increases as problems emerged in the "junk bond" market for food items helped damp the rise in consumer for a few prominent issuers. prices in July and August, but prices for other In foreign exchange markets, the tradeconsumer goods also rose more slowly. Average weighted value of the dollar in terms of the other hourly earnings slipped a little in August after a G-10 currencies rose substantially early in the sizable jump in the previous month, but on a intermeeting period; better-than-expected U.S. year-over-year basis this decline did not indicate job growth in August and U.S. trade data for July a change in trend. outweighed the effects of a slight decline in U.S. At its meeting on August 22, the Committee interest rates and some increase in rates abroad. adopted a directive that called for maintaining The dollar fell sharply after the release on Septhe current degree of pressure on reserve posi- tember 23 of the G-7 statement that the rise of the tions and that provided for giving special weight dollar in recent months was inconsistent with to potential developments that might require longer-run fundamentals, and the ensuing coorsome slight easing during the intermeeting pe- dinated central-bank intervention in exchange riod. The Committee agreed that, in furtherance markets. Also contributing to the slippage of the of the ultimate achievement of price stability, dollar were growing market expectations of some primary weight in considering the need for inter- tightening of monetary policies abroad. On bal- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 19 ance, the dollar depreciated somewhat over the year as output growth slowed, capacity pressures intermeeting period. eased, and profits eroded. The recent weakening Growth of the monetary aggregates slowed in in food and energy prices pointed to a slower rise August from their advanced July rates, which in consumer prices for the next few quarters; likely had been boosted by the replenishment of however, with margins of unutilized labor and balances used to pay taxes last spring; their other production resources still low, the underslower growth evidently carried over to Septem- lying trend in inflation was not expected to show ber. Despite its deceleration, M2 still grew fairly much improvement. briskly in August and apparently also in Septem- In the Committee's discussion of the economic ber, bringing its expansion thus far this year to situation and outlook, members commented that somewhat above the lower end of the Commit- current indicators of business activity, including tee's annual range. Continued rapid growth of economic conditions in different parts of the the retail components of M2 reflected in part the country, presented a somewhat mixed picture. lagged effects of earlier declines in market inter- On the whole, however, members generally est rates. M3 increased at a substantially reduced viewed the evidence as pointing to sustained pace over the August-September period, and it expansion over the next several quarters, though had expanded for the year to date at a rate many expected economic growth to slow somearound the lower bound of the Committee's what from its recent pace. In assessing the annual range. The sluggish growth of M3 appar- chances of a different outcome, the members did ently was related in part to the declining needs of not rule out the possibility of a slightly stronger savings and loan associations for managed-lia- economic performance, but they generally felt bility funds; undercapitalized institutions were that the risks were tilted toward marginally shrinking their balance sheets as a means of greater slowing and a few expressed concern that complying with new, more stringent capital stan- a more pronounced weakening could emerge. dards, and insolvent institutions were receiving With regard to the outlook for inflation, many funds from the Resolution Trust Corporation commented that, given moderate economic (RTC). growth and a sustained period of monetary re- The staff projection prepared for this meeting straint, underlying inflationary pressures were suggested that the nonfarm economy was likely likely to ease a little over the next several quarto grow over the remainder of 1989 at about the ters, but some anticipated somewhat greater pace estimated for the first half of the year but progress in reducing inflation. Concern was exthat the expansion would slow in 1990. The pressed by some, however, that wage-cost presprojection assumed that fiscal policy would re- sures might intensify. The members agreed that main moderately restrictive and that the contri- progress against inflation would depend imporbution of foreign trade to growth would be very tantly on the behavior of the dollar in foreign limited, owing in part to the earlier appreciation exchange markets; a very substantial decline in of the dollar. Consumer demand was expected to the value of the dollar would put upward presbe bolstered in the near term by continued sure on prices and make achievement of the growth in labor income and the positive effect on Committee's price stability objective correreal purchasing power of the recent slowing of spondingly more difficult. price increases, but over the rest of the projec- With regard to developments in specific section period steadily mounting slack in labor mar- tors of the economy, members commented that a kets would exert a restraining effect on real key uncertainty in the business outlook related to income and consumer demand. Declines in inter- the prospects for capital expenditures. Growth in est rates earlier in the year were expected to such spending had slowed from a very high rate provide some temporary stimulus to residential in the first half of the year, and it was not clear construction activity over the next quarter or so. from the recent data whether business invest- Expansion in business capital spending was pro- ment was weakening further or whether its jected to moderate substantially over the projec- growth had stabilized at a reduced pace. New tion period from the pace in the first half of the orders for capital equipment had softened, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Federal Reserve Bulletin • January 1990 order backlogs remained substantial and sug- continuing to restrain inflationary pressures and gested continued high levels of production for that the economy also was benefiting from ongomany firms. On the other hand, indications of ing cost-reducing measures induced by strong declining business profits together with the finan- competition in domestic and international marcial difficulties of a number of firms pointed to kets. A tendency for the prices of many commodmore restrained investment spending. The key to ities and intermediate materials to soften, if only actual capital spending, of course, would be the marginally, also supported a relatively optimistic evolving demand for goods and services and in outlook for inflation. Moreover, there was a that regard consumer spending, while subject to continuing pattern of restraint in labor settlesome volatility stemming especially from pur- ments despite tight labor markets in many areas. chases of motor vehicles, was likely to continue Reflecting demographic factors, upward presto provide support for sustained growth. Busi- sures on wages tended to be concentrated on ness inventories, with some notable exceptions entry-level jobs, while pressures in many of the such as stocks of motor vehicles, were reported more skilled job categories appeared to have to be at acceptable levels and were not likely to diminished in various parts of the country. Howcontribute to wide swings in production unless ever, some members expressed concern that final demands differed greatly from current ex- faster wage increases remained a threat, espepectations. The members were more uncertain cially if the economy continued to operate at about the outlook for housing and net exports. In levels close to its potential. the housing sector, considerable weakness had In the Committee's discussion of monetary emerged in several parts of the country, and policy for the intermeeting period ahead, most of some members questioned whether any improve- the members endorsed a proposal to maintain ment could be expected over the next several unchanged conditions of reserve availability and quarters even though interest rates had fallen preferred or found acceptable a suggestion to since last spring. With regard to the prospects for retain the asymmetry toward ease that was inforeign trade, the dollar's appreciation this year corporated in the latest directive. While noting had retarded improvement in the trade balance that developments in the near term might alter and, barring a substantial real depreciation, was the economic outlook, most members felt that expected to continue to do so for some time. It prevailing conditions in the domestic economy was presumed that fiscal policy would remain did not warrant a policy change in either direcmoderately restrictive, but that there would be tion at this time. The focus of policy continued to no dramatic turn in the federal budget deficit of be that of gradually reducing inflation over time the sort that would substantially reduce demand and a steady policy course seemed consistent pressures in the domestic economy while accom- with that objective, at least for now. modating significant improvement in the trade Members also were concerned that an easing deficit. of policy so soon after the G-7 meeting would be In the Committee's discussion of the outlook misinterpreted as an attempt to use monetary for inflation, members observed that the recent policy to force the dollar lower. While the dollar improvement largely reflected a number of spe- was an important factor influencing the course of cial factors—such as developments in the food the U.S. economy and prices, monetary policy and energy sectors and the appreciation of the should not be used, in the judgment of the dollar this year—that could not be projected to Committee, to attain particular levels for the recur. Several saw only limited prospects for foreign exchange value of the dollar that could further improvement over the year ahead, given conflict with domestic policy objectives. In curtheir expectations with regard to the overall rent circumstances, an easing might well provoke performance of the economy and related pres- an undesirable sharp decline in the external value sures on resources. Others felt that the behavior of the dollar. The members also discussed the of prices and wages might continue to be better recent substantial intervention by G-7 and other than had been expected. They noted that reduced nations against the dollar. Some members exmonetary growth over an extended period was pressed concern that if this intervention resulted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee 21 in a sizable depreciation of the dollar, the infla- indicated that they could accept such an instructionary consequences could be viewed as incon- tion. sistent with the Committee's long-run policy of It was noted in further discussion that seasonal achieving price stability. borrowing was likely to drop in the weeks ahead, In further discussion of an appropriate course so that a declining total of adjustment plus seafor monetary policy, the Committee took ac- sonal borrowing would be associated with a count of a staff analysis that suggested that, on given degree of reserve restraint and a given the assumption of unchanged conditions of re- federal funds rate. It was understood that, subserve availability and steady interest rates, M2 ject to the Chairman's review, the necessary growth would moderate somewhat over the bal- technical reductions in borrowing objectives ance of the year from its rapid pace in recent would be made during the intermeeting period. months; nonetheless, growth of this aggregate At the conclusion of the Committee's discuswould continue to be supported to some extent sion, all but two of the members indicated that by the lagged effects of earlier declines in market they preferred or could accept a directive that interest rates on the opportunity costs of holding called for maintaining the current degree of M2 balances, and on a cumulative basis M2 was pressure on reserve positions and that provided projected to rise somewhat further within the for giving particular weight to potential devellower half of the Committee's range for the year. opments that might require some slight easing The expansion of M3 was expected to continue during the intermeeting period. Accordingly, to be damped, though to a reduced extent, in the slightly greater reserve restraint might be acfourth quarter by further reductions in the assets ceptable during the intermeeting period, while and M3 liabilities of undercapitalized thrift insti- some slight lessening of reserve restraint would tutions and by RTC outlays that substituted in be acceptable, depending on progress toward part for managed liabilities in M3; by year-end, price stability, the strength of the business this aggregate was projected to be a little above expansion, the behavior of the monetary aggrethe lower bound of the Committee's range. The gates, and developments in foreign exchange pickup in the growth of money and reserve and domestic financial markets. The reserve aggregates since around midyear and the pro- conditions contemplated by the Committee jected expansion of the broad money aggregates were expected to be consistent with growth of within the Committee's ranges for the year were M2 and M3 at annual rates of around 6V2 cited as welcome developments that were con- percent and AVi percent respectively over the sistent with the Committee's overall policy ob- three-month period from September to Decemjectives. ber. The intermeeting range for the federal In the Committee's consideration of possible funds rate, which provides one mechanism for adjustments in the degree of reserve pressure initiating consultation of the Committee when during the intermeeting period, a majority of the its boundaries are persistently exceeded, was members supported a proposal to adjust opera- left unchanged at 7 to 11 percent. tions more readily toward some easing than At the conclusion of the meeting, the following toward any firming. In the view of these mem- domestic policy directive was issued to the Fedbers, the risks to the expansion were more eral Reserve Bank of New York: heavily weighted toward a shortfall from current The information reviewed at this meeting suggests expectations than toward faster growth and that economic activity continued to expand at a modgreater inflationary pressures. Members who erate pace in the third quarter. In July and August, preferred a symmetrical instruction generally total nonfarm payroll employment rose appreciably saw the risks to the economy as more evenly despite the depressing effect of strike activity. The balanced, and some observed that the present civilian unemployment rate remained around 5'A perdollar situation warranted extra caution before cent. Industrial production picked up in August, mainly because of a rebound in auto assemblies and any easing was undertaken; however, a bias coal mining. Consumer spending has registered larger toward ease would not involve any change from gains in recent months, reflecting in part a surge in the current directive and most of these members auto sales. Housing starts in July and August were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1990 slightly above their second-quarter average. Indicators In the implementation of policy for the immediate of business capital spending suggest somewhat slower future, the Committee seeks to maintain the existing growth in the third quarter after the substantial in- degree of pressure on reserve positions. Taking crease in the first half of the year. The nominal U.S. account of progress toward price stability, the merchandise trade deficit recorded a further decline in strength of the business expansion, the behavior of July relative to June and to the average for the second the monetary aggregates, and developments in forquarter as a whole. Sharp reductions in energy prices eign exchange and domestic financial markets, over the summer months damped increases in con- slightly greater reserve restraint might or slightly sumer prices and contributed to declines in producer lesser reserve restraint would be acceptable in the prices. The latest wage data suggest no change in intermeeting period. The contemplated reserve conprevailing trends. ditions are expected to be consistent with growth of Interest rates generally show small mixed changes M2 and M3 over the period from September through on balance since the Committee meeting on August 22. December at annual rates of about 6V2 and AVi In foreign exchange markets, the trade-weighted value percent, respectively. The Chairman may call for of the dollar in terms of the other G-10 currencies fell Committee consultation if it appears to the Manager after the release of the G-7 statement on September 23; for Domestic Operations that reserve conditions duron balance, the dollar depreciated somewhat over the ing the period before the next meeting are likely to be intermeeting period. associated with a federal funds rate persistently M2 grew fairly briskly in August and evidently also in outside a range of 7 to 11 percent. September, lifting its expansion thus far this year to somewhat above the lower end of the Committee's Votes for this action: Messrs. Greenspan, Corannual range. M3 grew at a substantially reduced pace rigan, Angell, Johnson, Keehn, Kelley, LaWare, in this period, as assets of thrift institutions and their Melzer, and Syron. Votes against this action: Mr. associated funding needs apparently contracted further; Guffey and Ms. Seger. for the year to date, M3 has grown at a rate around the lower bound of the Committee's annual range. The Federal Open Market Committee seeks mone- Mr. Guffey favored an unchanged policy for tary and financial conditions that will foster price sta- the period ahead, but he dissented because he bility, promote growth in output on a sustainable basis, could not support a directive that was biased and contribute to an improved pattern of international toward easing during the intermeeting period. He transactions. In furtherance of these objectives, the remained concerned that the rate of inflation Committee at its meeting in July reaffirmed the ranges it had established in February for growth of M2 and M3 of would continue to be undesirably high. 3 to 7 percent and 3V2 to IVz percent, respectively, Ms. Seger dissented because she felt that some measured from the fourth quarter of 1988 to the fourth easing of monetary policy was desirable at this quarter of 1989. The monitoring range for growth of time. In her view developments in manufactotal domestic nonfinancial debt also was maintained at turing, notably in the motor vehicles sector, 6!/2 to IOV2 percent for the year. For 1990, on a tentative basis, the Committee agreed in July to use the same along with potential softness in capital expendiranges as in 1989 for growth in each of the monetary tures, housing construction, and exports signaled aggregates and debt, measured from the fourth quarter a weaker overall economy. In the circumstances, of 1989 to the fourth quarter of 1990. The behavior of she believed that an easier monetary policy was the monetary aggregates will continue to be evaluated needed to help sustain the expansion and that in the light of movements in their velocities, developments in the economy and financial markets, and prog- such a policy would be consistent with continuress toward price level stability. ing progress in reducing the rate of inflation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

23 Legal Developments ORDERS ISSUED UNDER BANK HOLDING ter Financial would become the ninth largest institu- COMPANY ACT tion among commercial banks and savings banks in Connecticut with deposits of $1.8 billion, representing 2.8 percent of total deposits in such institutions in Orders Issued Under Section 3 of the Bank the state. Consummation of the proposed transaction Holding Company Act would not have a significantly adverse effect upon existing or probable future competition in any other relevant banking market.2 Center Financial Corporation In evaluating this application, the Board is re- Waterbury, Connecticut quired, under section 3 of the BHC Act, to consider the financial and managerial resources of Center Order Denying Formation of a Bank Holding Financial, Centerbank, and Burritt, and the effect of Company the proposed acquisition on the future prospects of each organization. Center Financial Corporation, Waterbury, Connect- The Board previously has stated that a bank holdicut ("Center Financial"), has applied pursuant to ing company should serve as a source of financial and section 3(a)(1) of the Bank Holding Company Act managerial strength to its subsidiary banks, and that (the "BHC Act"), 12 U.S.C. § 1842(a)(1), to become the Board would closely examine the condition of an a bank holding company by acquiring all of the voting applicant and its subsidiaries in each case with this shares of Centerbank, Waterbury, Connecticut consideration in mind.3 The Board views with con- ("Centerbank"), as well as all of the voting shares of cern any proposal involving a major expenditure of Burritt InterFinancial Bancorporation, New Britain, funds for expansion that could limit a bank holding Connecticut ("Burritt"). Both Centerbank and Burr- company's ability to serve as a source of strength to itt are state-chartered FDIC-insured savings banks its subsidiary banks.4 Accordingly, the Board exand, by virtue of these acquisitions, Center Financial pects organizations contemplating significant expanwould become a savings bank holding company sion to be in satisfactory financial condition. pursuant to sections 2(1) and 2(m) of the BHC Act, 12 U.S.C. § 1841(1) and (m). Notice of the application, affording interested persons an opportunity to submit comments, has been 2. The only market in which Centerbank and Burritt both compublished (54 Federal Register 11,278 (1989)). The pete is the Hartford banking market. The Hartford banking market is approximated by Hartford County and parts of Tolland, Middletime for filing comments has expired, and the Board sex, Litchfield, Windham, and New London Counties, all of Conhas considered the application and all comments re- necticut. ceived in light of the factors set forth in section 3(c) of As of June 30, 1988, Centerbank is the 57th largest institution among commercial banks and savings banks in the Hartford banking the BHC Act. market with deposits of $4.4 million, representing less than one Centerbank is the 11th largest institution among percent of total deposits held by such institutions in the market. Burritt is the tenth largest institution among commercial banks and commercial banks and savings banks in Connecticut savings banks in the market with deposits of $487.8 million, reprewith deposits of $1.3 billion, representing 2.0 percent senting 5.6 percent of total deposits held by such institutions in the of total deposits in such institutions in the state, market. Upon consummation of this transaction, Center Financial would become the ninth largest institution among commercial banks while Burritt is the 24th largest institution among and savings banks in this market with deposits of $492.2 million, commercial banks and savings banks in the state with representing 5.6 percent of total deposits held by such institutions in deposits of $536.0 million, representing less than one this market. Upon consummation of this transaction, the Herfindahl-Hirschman Index for the Hartford banking market would inpercent of total deposits in such institutions in the crease by less than one point to 838. state.1 Upon consummation of this transaction, Cen- 3. See St. Croix Valley Bancshares, Inc., 75 Federal Reserve Bulletin 575 (1989). 4. See Manufacturers Hanover Corporation, 71 Federal Reserve Bulletin 452, 453 (1984); see also First Bancorp of N.H., Inc., 66 1. Statewide deposit data are as of June 30, 1989. Federal Reserve Bulletin 856 (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1990 Based upon a review of the available data concern- Deposit Guaranty Corporation ing the financial condition of Center Financial and Jackson, Mississippi Centerbank, the Board is unable to conclude that Centerbank's current and pro forma financial condi- Order Approving Acquisition of a Bank Holding tion supports approval. Center Financial proposes to Company fund its acquisition of Burritt entirely with cash obtained through a substantial dividend payment Deposit Guaranty Corporation, Jackson, Mississippi from Centerbank. Center Financial has not projected ("DGC"), a bank holding company within the meanthat any equity capital would be issued either as part ing of the Bank Holding Company Act (the "BHC of this proposal or at any time through year-end 1990. Act"), has applied for Board approval under section 3 These demands upon the earnings of Centerbank and of the BHC Act (12 U.S.C. § 1842) to acquire Comupon Center Financial's resources could unduly mercial National Corporation, Shreveport, Louisiana weaken Center Financial and limit its ability to ("CNC"), and thereby to acquire indirectly CNC's respond to present and prospective needs of its subsidiary bank, Commercial National Bank in proposed subsidiary banks. Recently, Centerbank's Shreveport, Shreveport, Louisiana ("Bank").1 rate of profitability has declined and is now below Notice of the application, affording interested perthose for comparably sized banks. In addition, the sons an opportunity to submit comments, has been performance of Centerbank's loan portfolio has been published (54 Federal Register 35,246 (1989)). The adversely affected by the weakening of real estate time for filing comments has expired, and the Board markets in its operating region and elsewhere. has considered the application and all comments re- Based upon the facts of record in this case, the ceived in light of the factors set forth in section 3(c) of Board believes that the proposed acquisition would the BHC Act. substantially lessen the ability of Center Financial to Section 3(d) of the BHC Act, the Douglas Amendserve as a source of strength to Centerbank and ment, prohibits the Board from approving an applica- Burritt, and therefore is not in the public interest. tion by a bank holding company to acquire control of Additionally, this proposal raises concerns regarding any bank located outside of the holding company's the future prospects of Center Financial and its sub- home state,2 unless such acquisition is "specifically sidiaries. Accordingly, based upon all the facts of authorized by the statute laws of the State in which record of this case, the Board finds that financial [the] bank is located, by language to that effect and not considerations are not consistent with approval of this merely by implication." Louisiana law permits the application. acquisition of a Louisiana bank or bank holding com- Managerial factors and convenience and needs con- pany by a bank holding company located in any state siderations in this case do not lend sufficient weight to whose laws permit a Louisiana bank or bank holding warrant approval. company to acquire a bank or bank holding company Based upon the foregoing and other facts of record, in that state.3 The Board has determined previously the Board concludes that the banking considerations that a Mississippi bank holding company may acquire involved in this proposal present adverse factors bear- a bank holding company in Louisiana.4 Based on the ing upon the financial resources and future prospects foregoing, the Board has determined that the proposed of Center Financial, Centerbank, and Burritt. Such acquisition is specifically authorized by the statute adverse factors are not outweighed by any pro-com- laws of Louisiana and that Board approval of the petitive effects, by significant benefits that would proposal is not barred by the Douglas Amendment. better serve the convenience and needs of the commu- DGC is the largest commercial banking organization nity, or by other public benefits. Accordingly, it is the in Mississippi, controlling approximately $2.8 billion Board's judgment that approval of the application in deposits, representing 17.3 percent of the total would not be in the public interest, and that the deposits in commercial banking organizations in the application should be, and hereby is, denied. By order of the Board of Governors, effective November 27, 1989. 1. In connection with this application, DGC proposes to form CNC Acquisition, Inc., for the purpose of merging with CNC and thereby indirectly acquiring Bank. 2. A bank holding company's home state is that state in which the Voting for this action: Vice Chairman Johnson and Goveroperations of the bank holding company's banking subsidiaries were nors Seger, Angell, Kelley, and LaWare. Absent and not principally conducted on July 1, 1966, or the date on which the voting: Chairman Greenspan. company became a bank holding company, whichever is later. DGC's home state is Mississippi. 3. La. R.S. 6:533 (A)(3). JENNIFER J. JOHNSON 4. Grenada Sunburst System Corporation, 74 Federal Reserve Associate Secretary of the Board Bulletin 513 (1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 25 state.5 CNC is the fifth largest commercial banking financial and managerial considerations are consistent organization in Louisiana, controlling approximately with approval of this application. $885.7 million in deposits, representing 2.9 percent of In considering the convenience and needs of the the total deposits in commercial banking organizations communities to be served, the Board has taken into in the state. Consummation of this proposal would not account the record of DGC and its bank subsidiary have a significant adverse effect on concentration of under the Community Reinvestment Act ("CRA") banking resources in either state. (12 U.S.C. § 2901 et seq.). The CRA requires that DGC and CNC do not compete directly in any federal financial supervisory agencies encourage finanbanking market. Consummation of this proposal cial institutions to help meet the credit needs of the would not have a significant adverse effect on actual or local communities in which they operate, consistent potential competition in any relevant banking market. with the safe and sound operation of such institutions. In evaluating this application, the Board has consid- To accomplish this end, the CRA requires the approered the financial and managerial resources of DGC priate federal supervisory authority to assess the instiand the effect on those resources of the proposed tution's record of meeting low- and moderate-income acquisition. The Board has stated and continues to neighborhoods, consistent with the safe and sound believe that capital adequacy is an important factor in operation of the institutions.9 The Board is required to the analysis of bank holding company expansion "take such record into account in its evaluation" of proposals.6 In this regard, the Board has stated that it applications under section 3 of the BHC Act.10 expects banking organizations contemplating expan- The Board has carefully reviewed the CRA perforsion proposals to maintain strong capital levels sub- mance record of DGC's subsidiary bank in light of the stantially above the minimum levels specified in the CRA and the Board's Agency CRA Statement.11 The Board's Capital Adequacy Guidelines7 without signif- Agency CRA Statement provides guidance regarding icant reliance on intangibles, in particular goodwill. the types of policies and procedures that the supervi- The Board carefully analyzes the effect of expansion sory agencies believe financial institutions should have proposals on the preservation or achievement of in place in order to fulfill their responsibilities under strong capital levels and has adopted a policy that the CRA on an ongoing basis and the procedures that there should be no significant diminution of financial the supervisory agencies will use during the applicastrength below these levels for the purpose of effecting tion process to review an institution's CRA complimajor expansion proposals.8 ance and performance. DGC proposes to acquire all of the outstanding Initially, the Board notes in this case that Deposit common shares of CNC stock through an exchange of Guaranty National Bank ("DGN Bank") received a shares and will not incur any debt as a result of this satisfactory CRA assessment from its primary superacquisition. Although the proposal will result in a visory agency in its most recent examination. In decline in the capital ratios of DGC, DGC will remain addition, DGN Bank has in place the types of prowell capitalized, following consummation of the pro- grams outlined in the Agency CRA Statement as posal, with capital ratios significantly above the mini- essential to an effective CRA program. The CRA mum levels specified in the Board's Capital Adequacy program implemented by DGN Bank has a community Guidelines. In light of DGC's financial and managerial outreach component that calls for ongoing community resources, CNC's future prospects should be materi- contact regarding the needs of the community, includally enhanced. Accordingly, based on these and all of ing low- and moderate-income neighborhoods, and the the other facts of record, the Board concludes that 9. 12 U.S.C. § 2903. 10. In this regard, following the expiration of the public comment period in this case, the Board received comments filed by the Jackson 5. All data are as of December 31, 1988. CRA Coalition, Jackson, Mississippi ("Protestant"), alleging that 6. The Bank of New York Company, Inc., 74 Federal Reserve DGC has not provided an adequate analysis of the credit needs of its Bulletin 257 (1988); Chemical New York Corporation, 73 Federal community and that DGC has not provided adequate business or Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497 mortgage loans to the low-income and minority areas of Jackson. (1986); National City Corporation, 70 Federal Reserve Bulletin 743 Under the Board's Rules of Procedure, the Board is not required to (1984). consider comments received following the close of the public com- 7. Capital Adequacy Guidelines, 50 Federal Register 16,057 (April ment period. 12 C.F.R. 262.3(e). See also Statement of the Federal 24, 1985). Financial Supervisory Agencies Regarding the Community Reinvest- 8. Thus, for example, the Board has generally approved proposals ment Act (March 21, 1989) ("Agency CRA Statement"). The Board, involving a decline in capital only where the applicants have promptly in its discretion, may consider the substance of any comments restored their capital to preacquisition levels following consummation received regarding an application. The Board's consideration of the of the proposals and have implemented programs of capital improve- CRA performance record in this case included review of the adequacy ment to raise capital significantly above minimum levels. See, e.g., of the banking organization's lending and outreach efforts, which were Citicorp, 72 Federal Reserve Bulletin 726 (1986); Security Pacific the subject of Protestant's comments in this case. Corporation, 72 Federal Reserve Bulletin 800 (1986). 11. 54 Federal Register 13,742 (1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1990 products and services that the bank offers to meet Based on the foregoing and other facts of record, the these needs. DGN Bank also uses specialized market- Board has determined that the application should be, ing efforts to ensure that all segments of the commu- and hereby is, approved. nity are aware of its services. For example, DGN The acquisition of CNC shall not be consummated Bank regularly uses minority-owned media to reach before the thirtieth calendar day following the effective minority segments of the community. date of this Order, or later than three months after the DGN Bank has established a CRA Compliance effect date of this Order, unless such period is ex- Officer Network within its banking system. Each CRA tended for good cause by the Board or by the Federal Officer has responsibility for a CRA Activity Report Reserve Bank of Atlanta, acting pursuant to delegated that is made monthly and forwarded through the CRA authority. Regional Captain to the Community Affairs Officer in By order of the Board of Governors, effective Jackson, Mississippi. The Community Affairs Officer November 27, 1989. briefs the DGN Bank's board of directors quarterly on CRA matters. Voting for this action: Vice Chairman Johnson and Gover- DGN Bank is an active provider of home improve- nors Seger, Angell, Kelley, and La Ware. Absent and not voting: Chairman Greenspan. ment loans in minority areas. DGN Bank also participates in small business lending in low- and moderate- JENNIFER J. JOHNSON income areas and has participated in federal programs Associate Secretary of the Board to increase the housing available to the elderly and low- and moderate-income families. In addition, DGN Orders Issued Under Section 4 of the Bank Bank also hired consultants to survey its communities Holding Company Act and to devise methods for increasing DGN Bank's marketing and lending in low- and moderate-income J.P. Morgan & Company Incorporated communities. DGN Bank has implemented several of New York, New York the recommendations from the survey, including increased advertising and product development to meet Order Approving Application to Act as Agent in the the needs of minorities in DGN Bank's service area Private Placement of All Types of Securities and Act and hosts seminars on small-business financing and as Riskless Principal in Buying and Selling consumer finance issues. Several of the recently im- Securities plemented programs are similar to the programs sought by Protestant. J.P. Morgan & Company Incorporated, New York, Based upon the overall CRA record of DGN Bank New York ("Morgan"), a bank holding company and other facts of record, the Board concludes that within the meaning of the Bank Holding Company convenience and needs considerations, including the Act ("BHC Act"), has applied for the Board's record of performance under the CRA of DGC's approval under section 4(c)(8) of the BHC Act subsidiary bank, are consistent with approval of this (12 U.S.C. § 1843(c)(8)) and section 225.23 of the application.12 Board's Regulation Y (12 C.F.R. 225.23), for its subsidiary, J.P. Morgan Securities Inc., New York, New York ("Company"), to act as agent in the private placement of all types of securities, including 12. Protestant has requested a public meeting or hearing on the providing related advisory services, and to buy and applications to provide testimony on the issues presented by these applications. Although section 3(b) of the BHC Act does not require a sell all types of securities on the order of investors as public meeting or hearing in this instance, the Board may, in its a "riskless principal". Some of the proposed serdiscretion, order a public meeting or hearing. See 12 C.F.R. 262.3(e). vices are currently being offered by Morgan's lead In that regard, the Board's Rules of Procedure provide that a public meeting may be held to clarify factual issues related to an application subsidiary bank. or to provide an opportunity for interested persons to testify. Morgan, with consolidated assets of $99.9 billion, 12 C.F.R. 262.25(d). In addition, under the provisions of the Board's is the third largest banking organization in the United Regulation Y, 12 C.F.R. 225.23(g), the Board shall order a hearing only if there are disputed issues of material fact that cannot be States.1 It operates two subsidiary banks and enresolved in some other manner. gages directly and through subsidiaries in a broad The Board has carefully considered Protestant's requests for a range of nonbanking activities, including engaging public meeting or hearing. In the Board's view, the parties have had ample opportunity to present their arguments in writing. In light of through Company in underwriting and dealing in, to these facts, the Board has determined that a public meeting or hearing is not necessary to clarify the factual record in these applications, or otherwise warranted in this case. Accordingly, the Protestant's request for a public meeting or hearing on these applications is hereby denied. 1. Data are as of June 30, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 27 a limited extent, certain securities.2 Company is and not constitute underwriting and dealing in securities will continue to be a broker-dealer registered with for purposes of section 20 of the Glass-Steagall Act, the Securities and Exchange Commission and subject and therefore revenue derived from these activities is to the record-keeping, reporting, fiduciary standards, not subject to the 10 percent revenue limitation on and other requirements of the Securities Exchange ineligible securities underwriting and dealing.5 Except Act of 1934, the New York Stock Exchange and the as described below, the methods and procedures Com- National Association of Securities Dealers. pany will use in conducting its private placement and Notice of the application, affording interested per- riskless principal activities will be consistent with sons an opportunity to submit comments on the pro- those approved in the Bankers Trust decision. posal, has been published (54 Federal Register 16,406 Additionally, in that decision the Board found that, (1989)). The time for filing comments has expired, and subject to a number of prudential limitations that the Board has considered the application and all address the potential for conflicts of interests, unsound comments received in light of the public interest banking practices or other adverse effects, private factors set forth in section 4(c)(8) of the BHC Act. The placement and riskless principal activities were so Board received written comments opposing the appli- closely related to banking as to be a proper incident cation from the Securities Industry Association thereto within the meaning of section 4(c)(8) of the ("SIA"), a trade association of the investment bank- BHC Act. Morgan has committed that Company will ing industry, and the Investment Company Institute conduct its private placement and riskless principal ("ICI"), a trade association of the mutual fund activities subject to all of the prudential limitations industry.3 agreed to by Bankers Trust with the following Because Company would be affiliated through comexceptions.6 mon ownership with a member bank, Company may Specifically, Morgan has not agreed to conditions in not be "engaged principally" in underwriting or deal- the prior decision that restrict 1) extensions of credit ing in securities within the meaning of section 20 of the by the bank holding company or any of its affiliates to Banking Act of 1933 (the "Glass-Steagall Act").4 In pay the principal amount of, or interest on, securities earlier decisions, the Board has determined that Com- placed by the section 20 subsidiary; and 2) purchases pany is not "engaged principally" in section 20 activ- for their own account by the parent holding company ities if revenues from underwriting and dealing in and other nonbank affiliates of section 20 subsidiaries securities that banks are not authorized to underwrite of securities being placed by the section 20 and deal in directly ("ineligible securities") do not subsidiary.7 These conditions were established by the exceed 10 percent of Company's gross revenues. Board to ensure that the objectivity and sound judg- In its recent Bankers Trust decision, the Board ment of banks and other affiliates of section 20 subsiddetermined that acting as agent in the private place- iaries would not be impaired by the placement or ment of securities and purchasing and selling securities underwriting profit that the section 20 subsidiary on the order of investors as a "riskless principal" do would receive for marketing the securities. Morgan has proposed to have its affiliated banks extend credit to an issuer whose debt securities have 2. See J.P. Morgan & Co. Incorporated, The Chase Manhattan Corporation, Bankers Trust New York Corporation, Citicorp and Security Pacific Corporation, 75 Federal Reserve Bulletin 192 (1989) ("J.P. Morgan et a/."); Citicorp, J.P. Morgan & Co. Incorporated 5. Bankers Trust New York Corporation, 75 Federal Reserve and Bankers Trust New York Corporation, 11 Federal Reserve Bulle- Bulletin 829 (Order dated October 30, 1989) ("Bankers Trust"). tin 473 (1987), affd sub nom., Securities Industry Association v. 6. The SIA argues that the fact that Morgan is proposing that Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d Company privately place all types of securities, as opposed to only Cir. 1988), cert, denied, 108 S.Ct. 2830 (1988); and J.P. Morgan & high grade commercial paper notes as had been previously approved Co. Incorporated, 73 Federal Reserve Bulletin 875 (1987); as mod- by the Board, is significant in assessing the applicability of the ified by Order Approving Modifications to Section 20 Orders, 75 Glass-Steagall Act prohibitions in this case. See Statement Concern- Federal Reserve Bulletin 751 (1989). ing Applicability of the Glass-Steagall Act to the Commercial Paper 3. The comments of the ICI were received substantially after the Placement Activities of Bankers Trust Company (June 4, 1985); and close of the comment period prescribed in the notice of this applica- Securities Industry Association v. Board of Governors, 807 F.2d 1052 tion and therefore are not required to be considered by the Board. In (D.C. Cir. 1986), cert, denied, 483 U.S. 1005 (1987) ("Bankers Trust any event, the ICI has objected to Morgan's proposal to the extent II"). The Board considered this argument in Bankers Trust and noted that it could be construed to seek approval for Company to privately that because the Board and the Bankers Trust II court clearly place securities of investment companies that are sponsored or recognized that commercial paper is a security for purposes of the advised by Company or Morgan. Morgan has not requested approval Glass-Steagall Act, the fact that Bankers Trust (or in this case, to place such securities. Morgan) wishes to privately place all types of securities in a manner 4. Section 20 of the Glass-Steagall Act (12 U.S.C. § 377) pro- similar to that used in the commercial paper case, would not, by itself, vides that "... no member bank shall be affiliated . . . with any . . . change the activity into underwriting and dealing. organization engaged principally in the issue, flotation, underwrit- 7. Morgan has agreed to consult with Federal Reserve staff before ing, public sale, or distribution at wholesale or retail or through transferring its private placement and riskless principal activities from syndicate participation of stocks, bonds, debentures, notes, or other Company to any other nonbank subsidiary of Morgan to assure that securities. ..." none of the firewall provisions committed to is evaded by the transfer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1990 been placed by the section 20 subsidiary where the (including pricing, minimum borrower cash flow-toproceeds would be used to pay the principal amount of debt service or collateral requirements, or repayment the securities at maturity. Morgan has stated that such terms) that are not preferential and that fully reflect the transactions may be appropriate if, at the time the risks associated with the loan, as required under securities mature, it were more advantageous to the section 23B of the Federal Reserve Act. The Federal issuer to obtain financing from the bank rather than to Reserve Bank of New York will closely review loan reissue the securities. documentation of bank affiliates to ensure that an In situations where the decision to extend credit to independent and thorough credit evaluation has been an issuer of securities placed by the section 20 subsid- undertaken with respect to the participation of the iary to repay the principal amount of the securities at bank in these credit extensions to issuers of securities maturity is made at a different time than when the privately placed by an agent affiliated with the bank. securities are actually being placed, the likelihood that With respect to the affiliate purchase restriction, the decision to extend credit would be influenced by Morgan has also proposed to have Company place any promotional incentive associated with the place- securities with its parent holding company or with a ment activity would be minimized, especially in the nonbank subsidiary of the parent company.10 In this case of longer term securities. Since the decision regard, the Board notes that banks that currently place whether to extend credit in this situation would not be securities do place them with the parent company or made while the securities are being marketed, the other nonbank affiliates. No particular supervisory likelihood that the bank would not exercise indepen- problem has to date arisen from such investments. In dent judgment in assessing the creditworthiness of the addition, since purchases of securities will not be issuer in light of all relevant circumstances at the time made by the affiliated bank, the possibility that losses would be lessened. The bank's credit decisions, more- as a result of these investments will adversely affect over, can be closely scrutinized through the examina- the federal safety net protecting the bank is minimized. tion process. In addition, many of these credit trans- Accordingly, the Board believes that it is appropriactions could be subject to the requirements of section ate to allow Company to place securities with its 23B of the Federal Reserve Act, which provides that parent holding company or a nonbank affiliate. The certain types of transactions between a bank and a Board recognizes that the potential for certain connonbank affiliate must be on an arms' length basis.8 flicts of interest may be increased if affiliates were to While it is not entirely clear that section 23B will apply purchase the entire issue of securities placed by the to all of these credit transactions, the Board expects section 20 subsidiary or a substantial portion of such that the standards set out in that section will neverthe- an issue. The Board therefore believes that it is less be complied with. appropriate to require that affiliates of the section 20 Accordingly, the Board believes that it is appropri- subsidiary limit their investment, both individually and ate to allow banks affiliated with section 20 subsidiar- in the aggregate, in any particular issue of securities ies or other nonbank affiliates to extend credit to an that are placed by the section 20 subsidiary. The Board issuer to repay the principal amount of the securities, expects that Morgan will establish appropriate internal policies, procedures, and limitations regarding the provided there is some reasonable time difference amount of securities of any particular issue placed by between the placement of the securities and the decision to extend credit,9 and provided the extensions of Company that may be purchased by Morgan and each of its nonbanking subsidiaries, individually and in the credit meet prudent and objective standards. The aggregate.11 These policies and procedures, as well as Board conditions its decision with regard to these the purchases themselves, will be reviewed by the extensions of credit on the requirement that Morgan's Federal Reserve Bank of New York. subsidiary banks or other affiliates maintain detailed and clearly identified credit and collateral documentation so that examiners may determine that a thorough, objective and independent analysis of the credit has 10. Under current legal restrictions, member banks cannot generally been undertaken. In addition, documentation must be purchase securities privately placed by an affiliate. This is because maintained to show that the participation by a bank or member banks are prohibited from acquiring any equity securities or unmarketable debt securities, i.e., those that cannot be resold because thrift affiliate in the transaction has been undertaken of SEC private placement restrictions. See 12 U.S.C. §§ 24(Seventh) under circumstances and on terms and conditions and 335. 11. This limit should be less than 50 percent of the issue being placed. Additionally, in the development of these policies and procedures, Morgan should incorporate, with respect to placements of 8. 12 U.S.C. § 371c-l. securities, the limitations established by the Board in condition 12 of 9. In the Board's view, this requirement will be satisfied if at the its J.P. Morgan et al. Order regarding aggregate exposure of the time the extension of credit is made, a period of at least three years has holding company on a consolidated basis to any single customer elapsed from the time of the placement of the securities. whose securities are underwritten or dealt in by Company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 29 In sum, the record shows that under the framework The Netherlands (collectively "Applicants"), foreign established in this and prior decisions, consummation banking organizations subject to the Bank Holding of this proposal is not likely to result in any significant Company Act ("BHC Act"), have applied for the undue concentration of resources, decreased or unfair Board's approval under section 4(c)(8) of the BHC Act competition, conflicts of interest, unsound banking (12 U.S.C. § 1843(c)(8)) and section 225.23 of the practices, or other adverse effects. Board's Regulation Y (12 C.F.R. 225.23), to acquire Consummation of this proposal would provide 42 percent of the voting shares of DBI Holdings, Inc., greater efficiencies and added convenience to Mor- New York, New York ("DBI"), and thereby to engan's customers by allowing consolidation of a wider gage in investment advisory and securities brokerage range of services in a single entity. Accordingly, the services pursuant to sections 225.25(b)(4) and (15) of Board has determined that the performance of the the Board's Regulation Y (12 C.F.R. 225.25(b)(4) and proposed activities by Morgan can reasonably be (15)); to provide investment advisory and securities expected to produce public benefits which would brokerage services on a combined basis ("full-service outweigh adverse effects under the proper incident to brokerage activities");1 and to buy and sell securities banking standard of section 4(c)(8) of the BHC Act. on the order of investors as "riskless principal". Based on the above, the Board has determined to Notice of the applications, affording interested perapprove Morgan's application subject to all of the sons an opportunity to submit comments, has been terms and conditions set forth above. The Board's duly published (54 Federal Register 40,521 and 47,271 determination is subject to all of the conditions set (1989)). The time for filing comments has expired, and forth in the Board's Regulation Y, including those in the Board has considered the applications and all sections 225.4(d) and 225.23(b), and to the Board's comments received in light of the public interest authority to require modification or termination of the factors set forth in section 4(c)(8) of the BHC Act.2 activities of a bank holding company or any of its subsidiaries as the Board finds necessary to assure compliance with, and to prevent evasion of, the pro- 1. DBI owns Discount Brokers International, Inc., New York, New York ("DBI-U.S."), and Discount Brokers International (U.K.) Ltd., visions of the BHC Act and the Board's regulations London, England ("DBI-U.K."). DBI-U.K. would engage in securiand Orders issued thereunder. ties brokerage services for customers outside the United States, pursuant to section 4(c)(9) of the BHC Act and section 221.23(f)(3) of This transaction shall not be consummated later the Board's Regulation K. Applicants have committed that DBI-U.K. than three months after the effective date of this will limit its activities to those permitted for DBI's United States subsidiaries pursuant to this Order or otherwise permitted to domestic Order, unless such period is extended for good cause subsidiaries of bank holding companies under section 225.25(b) of the by the Board, or by the Federal Reserve Bank of New Board's Regulation Y (12 C.F.R. 225.25(b)). DBI-U.S. currently York, pursuant to delegated authority. engages in securities brokerage activities. Applicant proposes to form a new limited partnership, Henry Krieger/DBI, L.P., New York, New By order of the Board of Governors, effective York ("Krieger/DBI") that would succeed the businesses of DBI- November 22, 1989. U.S. and of Henry Krieger & Co., New York, New York, a limited partnership engaged in securities brokerage services. Krieger/DBI would engage in investment advisory, securities brokerage, full- Voting for this action: Chairman Greenspan and Governors service brokerage activities, and act as riskless principal. Johnson, Seger, Angell, and La Ware. Absent and not voting: 2. The Board received a written comment opposing the riskless Governor Kelley. principal portion of the application from the Securities Industry Association ("SIA"), a trade association of the investment banking industry. The SIA argues that acting as a riskless principal is a form of dealing in JENNIFER J. JOHNSON securities prohibited by section 20 of the Banking Act of 1933 (the Associate Secretary of the Board "Glass-Steagall Act") and that Applicants would be able to act as an underwriter or dealer in the United States for securities underwritten or traded by its foreign affiliates. The SIA further contends that acting as Stichting Amro riskless principal is not closely related to banking for purposes of the Amsterdam, The Netherlands BHC Act and that, in any event, the application should be denied under the BHC Act because no public benefits would result from this activity. For the reasons stated in Bankers Trust New York Corporation, 75 Amsterdam-Rotterdam Bank N.V. Federal Reserve Bulletin 829 (Order dated October 30,1989) ("Bankers Trust") and J.P. Morgan & Company Incorporated, 76 Federal Re- Amsterdam, The Netherlands serve Bulletin 26 (Order dated November 22,1989), the Board finds that the proposed riskless principal activity is not underwriting or dealing securities within the meaning of section 20. Moreover, Applicants have Order Approving Application to Engage in committed that DBI and its subsidiaries would not engage in riskless Investment Advisory and Securities Brokerage principal transactions with, or on behalf of, Applicants or any of Applicants' affiliates, including foreign affiliates that engage in securi- Activities and to Act as Riskless Principal in Buying ties dealing activities overseas. In addition, in these orders the Board and Selling Securities rejected the assertions of the SIA and determined that acting as a riskless principal is closely related to banking under the BHC Act. As indicated below, the Board has determined that the balance of public Stichting Amro and its subsidiary, Amsterdam-Rot- interest factors that it must consider under section 4(c)(8) of the BHC terdam Bank N.V. ("Amro"), both of Amsterdam, Act is favorable in this case. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Federal Reserve Bulletin • January 1990 Amro, with consolidated assets equivalent to ap- banking and commerce, create the possibility of proximately $83.5 billion, is the second largest banking conflicts of interest and other adverse effects that the organization in The Netherlands.3 In the United BHC Act was designed to prevent, or impair or give States, Applicants maintain a branch in New York and the appearance of impairing the ability of the banking representative offices in Chicago, Houston, and Los organization to function effectively as an indepen- Angeles. Accordingly, Applicants are subject to the dent and impartial provider of credit.6 Further, joint nonbanking restrictions of section 4 of the BHC Act as ventures must be carefully analyzed for any possible a bank holding company pursuant to section 8 of the adverse effects on competition and on the financial International Banking Act of 1978. 12 U.S.C. § 3106. condition of the banking organization involved in the The Board has previously determined by regulation proposal. that the investment advisory services and securities In prior cases involving joint ventures between bank brokerage services that Applicants propose to conduct holding companies and firms generally engaged in through DBI are closely related to banking and per- securities activities not authorized for bank holding missible for bank holding companies.4 The Board has companies, the Board has relied upon a series of also previously determined by Order that combined commitments to address these potential adverse efinvestment advisory and securities brokerage ser- fects. These commitments are designed to separate the vices, and acting as riskless principal, are closely activities of the joint venture from those of the nonrelated to banking and permissible for bank holding banking co-venturers. See Amsterdam-Rotterdam companies, subject to certain limitations.5 For the Bank, N.V., 70 Federal Reserve Bulletin 835 (1984). In reasons stated in those Orders, the Board confirms this case, Applicants have made a number of committhat engaging in full-service brokerage activities, and ments to assure this separation. Under the circumacting as a riskless principal, within the limits de- stances of this case, the Board finds these commitscribed in the Board's Orders, are closely related to ments are sufficient to address its concerns with banking for purposes of the BHC Act. Applicants potential adverse effects associated with the joint ventures. propose that DBI and its subsidiaries conduct these activities subject to the requirements of the Board's In applications under section 4(c)(8) of the BHC regulations and those previous Board Orders. In this Act, the Board considers the financial condition and regard, DBI and its subsidiaries would not have an resources of the applicant and its subsidiaries, and the inventory of securities. When acting as a riskless effects of the proposed transaction on those resources. principal, DBI and its subsidiaries would only engage In accordance with the principles of national treatment in transactions in the secondary market and not at the and competitive equity, the Board has stated that it order of a customer that is the issuer of the securities expects a foreign bank to meet the same general to be sold, and would not hold themselves out as standards of financial strength as domestic bank holdmaking a market in the securities that they buy and sell ing companies and to be able to serve as a source of as riskless principal. Moreover, DBI and its subsidiar- strength to its United States banking operations.7 In ies would not engage in riskless principal transactions considering applications of foreign banking organizawith Applicants or any of Applicants' affiliates, includ- tions, the Board has noted that foreign banks operate ing foreign affiliates that engage in securities dealing outside the United States in accordance with different activities overseas. regulatory and supervisory requirements, accounting principles, asset quality standards, and banking prac- The Board must also find that the proposed acquitices and traditions, and that these differences have sition "can reasonably be expected to produce benemade it difficult to compare the capital positions of fits to the public . . . that outweigh the possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices." 12 U.S.C. 6. See, e.g., The Long-Term Credit Bank of Japan, Limited, 75 Federal Reserve Bulletin 719 (1989); and Amsterdam-Rotterdam § 1843(c)(8). Prior decisions of the Board indicate a Bank, N.V., 70 Federal Reserve Bulletin 835 (1984). concern that joint ventures could potentially lead to 7. Bank of Seoul, 74 Federal Reserve Bulletin 684 (1988); The Bank a matrix of relationships between co-venturers that of Tokyo, Ltd., 74 Federal Reserve Bulletin 685 (1988); Toyo Trust and Banking Co., Ltd., 74 Federal Reserve Bulletin 623 (1988); Taiyo could break down the legally mandated separation of Kobe Bank, Ltd., 74 Federal Reserve Bulletin 621 (1988); Sumitomo Trust & Banking Co., Ltd., 73 Federal Reserve Bulletin 749 (1987); Ljubljanska Banka-Associated Bank, 72 Federal Reserve Bulletin 489 (1986); The Mitsubishi Trust and Banking Corporation, 72 Federal 3. Data are as of December 31, 1988. Reserve Bulletin 256 (1986); The Industrial Bank of Japan, Ltd., 72 4. 12 C.F.R. 225.25(b)(4) and (15). Federal Reserve Bulletin 71 (1986); The Mitsubishi Bank, Limited, 70 5. See, Bank of New England Corporation, 74 Federal Reserve Federal Reserve Bulletin 518 (1984). See also Policy Statement on Bulletin 700 (1988) (full-service brokerage); Bankers Trust (private Supervision and Regulation of Foreign-Based Bank Holding Compaplacement). nies, Federal Reserve Regulatory Service H 4-835 (1979). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 31 domestic and foreign banks. In the past, the Board has all of the conditions set forth in the Board's Regulation addressed the complex issues involved in balancing Y, including those in sections 225.4(d) and 225.23(b), these concerns in the context of individual applica- and to the Board's authority to require modification or tions on a case-by-case basis, making adjustments as termination of the activities of a holding company to appropriate to an applicant's capital to reflect differ- assure compliance with the provisions and purposes of ences in accounting treatment and regulatory prac- the BHC Act and the Board's regulations and orders tices. issued thereunder, or to prevent evasion thereof. The Board recently has adopted a proposal to sup- This transaction shall not be consummated later plement its consideration of capital adequacy with a than three months after the effective date of this risk-based system that is simultaneously being pro- Order, unless such period is extended for good cause posed by the member countries of the Basle Commit- by the Board or by the Federal Reserve Bank of New tee on Banking Regulations and Supervisory Practices York, pursuant to delegated authority. and the other domestic federal banking agencies.8 The By order of the Board of Governors, effective Board considers the Basle Committee proposal an November 30, 1989. important step toward a more consistent and equitable international norm for assessing capital adequacy. Voting for this action: Chairman Greenspan and Governors Until that framework becomes effective, however, the Johnson, Seger, Angell, Kelley, and LaWare. Board will continue to evaluate applications involving foreign banking organizations on a case-by-case basis WILLIAM W. WILES consistent with its prior precedent. Secretary of the Board In this case, the Board notes that the stated primary Orders Issued Under Sections 3 and 4 of the capital ratio of Amro meets the minimum capital Bank Holding Company Act guidelines for United States multinational bank holding companies. Further, Amro meets the 1990 interim risk-based guidelines, and its core capital exceeds the Lisco State Company 1992 minimum standard adopted by the Basle Commit- Lisco, Nebraska tee. The Board also notes that the applications involve permissible nonbanking activities that require a small Order Approving Acquisition of a Bank Holding commitment of capital. In view of these and other Company and Companies Engaged in Insurance and facts of record, the Board has determined that finan- Lending Activities cial factors are consistent with approval of the applications. Lisco State Company, Lisco, Nebraska ("Lisco"), a Consummation of Applicants' proposal may be ex- bank holding company within the meaning of the pected to provide increased services and convenience Bank Holding Company Act ("BHC Act"), has to DBI's customers and gains in efficiency. Addition- applied for the Board's approval under section ally, as a de novo investment adviser, Krieger/DBI 3(a)(3) of the BHC Act (12 U.S.C. § 1843(a)(3)) to may be expected to increase competition in this activ- acquire 28.3 percent of the voting shares of O & F ity. Accordingly, the Board has determined that per- Cattle Company, Oshkosh, Nebraska ("O & F"), formance of the proposed activities by DBI can rea- and indirectly acquire Nebraska State Bank, Oshsonably be expected to produce benefits to the public. kosh, Nebraska ("Nebraska Bank"). Lisco has also For these reasons, and in reliance on the commit- applied for the Board's approval under section ments offered in this case, the Board believes that the 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) to proposal is not likely to result in decreased or unfair engage, through the existing subsidiaries of O & F, in competition, conflicts of interests, unsound banking making and servicing loans and other extensions of practices, undue concentration of resources, or other credit, in the sale of credit-related insurance, and in adverse effects. general insurance agency activities in communities Based on the foregoing and other facts of record, the with a population of less than 5,000. These activities Board has determined that the balance of public inter- are authorized for bank holding companies pursuant est factors that it must consider under section 4(c)(8) to the Board's Regulation Y. 12 C.F.R. 225.25(b)(1), of the BHC Act is favorable. Accordingly, the Board (8)(i) and (8)(iii). has determined that the applications should be, and Notice of the applications, affording interested perhereby are, approved. This determination is subject to sons an opportunity to submit comments, has been published (54 Federal Register 31,884 (1989)). The time for filing comments has expired, and the Board 8. 54 Federal Register 4186 (1989). has considered the applications and all comments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1990 received in light of the factors set forth in section 3(c) rated village with a population of less than 100. Oshof the BHC Act and the public interest factors set forth kosh, Nebraska, which is the community in which in section 4(c)(8) of the BHC Act. Nebraska Bank operates its only office, is 30 miles Lisco and O & F are among the smaller commercial from Lisco, Nebraska, and has a population of approxbanking organizations in Nebraska, controlling to- imately 1100. Garden County as a whole has a popugether deposits of $27.5 million, representing less than lation-per-bank ratio of 933, which is considerably one percent of total deposits in commercial banking lower than the statewide average of 3475.5 Loans organizations in the state.1 Consummation of this originated in the Garden County market have declined proposal would not have a significantly adverse effect 17 percent between 1983 and 1987, and during the on the concentration of banking resources in Ne- period between 1984 and 1988, deposits in the market braska. have grown at only a nominal rate, substantially below Lisco operates one bank subsidiary, Lisco State the average rate of deposit growth in the state.6 Bank, Lisco, Nebraska ("Lisco Bank"). Both Lisco In addition to the market conditions, the Board has Bank and Nebraska Bank compete in the Garden considered the fact that members of the same family County banking market.2 Lisco Bank is the smallest of have owned Lisco Bank and Nebraska Bank since three banks in the market, controlling 22.3 percent of 1967. The father of the principal shareholders of the total deposits in commercial banking organizations in two banks controlled Lisco Bank from 1924 to 1977, the market. Nebraska Bank is the largest commercial when one of his sons, Thomas Olson, became the bank in the market, controlling 46.6 percent of total principal shareholder of Lisco. William Olson, the deposits in commercial banking organizations in the brother of Lisco's principal shareholder, also acquired market. Upon consummation of this proposal, Lisco shares of Lisco Bank at that time and both brothers would become the largest commercial banking organi- have continued to own their shares of Lisco Bank zation in the market, controlling 68.9 percent of total since 1977. William Olson acquired control of Nedeposits in commercial banking organizations in the braska Bank in 1967. The two brothers have served at market. The market would be considered highly con- the same time on the boards of either Lisco Bank or centrated, with the Herfindahl-Hirschman Index Nebraska Bank for 23 years, have served jointly on the ("HHI") increasing by 2077 points to 5712.3 boards of several nonbanking organizations, and are Although consummation of this proposal would re- joint owners of another bank holding company outside sult in the substantial reduction of existing competition of the market. Moreover, Thomas Olson currently in the Garden County banking market, several factors owns 9.9 percent of O & F and has been providing mitigate the potential anticompetitive effects of this significant management assistance to Nebraska Bank. proposal. The Board has considered the fact that The Board believes that the history of family owner- Garden County is a sparsely populated area that has ship of Lisco Bank and Nebraska Bank, and the experienced a steady decline in population.4 There are business relationships between the Olson brothers three population centers in Garden County, Nebraska. indicate that competition between Lisco Bank and Lisco, Nebraska, which is the community in which State Bank has been less than would be expected of Lisco Bank operates its only office, is an unincorpo- two completely independent organizations. Consequently, the Board has determined that, in view of all of the facts of record and in the particular 1. All banking data are as of December 31, 1988. context of the market conditions in this case, consum- 2. The Garden County banking market is approximated by Garden mation of this proposal would not have a significantly County, Nebraska. 3. Under the revised Department of Justice Merger Guidelines adverse effect on competition or the concentration of (49 Federal Register 26,823 (June 29, 1984)), any market in which the banking resources in the Garden County banking post-merger HHI is over 1800 is considered highly concentrated, and market. Thus, competitive effects are consistent with the Department of Justice is likely to challenge a merger that increases the HHI by more than 50 points unless other factors indicate that the approval. merger will not substantially lessen competition. The Department of Justice has informed the Board that a bank merger or acquisition is likely to be challenged (in the absence of other factors indicating an anticompetitive effect) if the post-merger HHI is at least 1800 and the merger increases the HHI by at least 200 points. The Department of Justice has informed Board staff that the 5. Of 64 counties in the United States with estimated populations of Department does not object to this acquisition on competitive 2100 to 3000, two contain no banks or branches, 38 contain one bank grounds. or branch, 16 contain two banks or branches, and only eight (including 4. Census data for 1980 indicates that Garden County has a Garden County) contain three or more banks or branches. Only 40 of population of approximately 2800 and that the population declined by the 199 counties with a population of 4000 or less support three or 3.4 percent between 1970 and 1980. U.S. Bureau of the Census, more banks or branches. Census of Population (1970 and 1980). The population has continued 6. The rate of deposit growth in the market from year-end 1984 to decline slowly since 1980. The 1989 Rand McNally Commercial through year-end 1988 averaged only 2.8 percent, well below the state Atlas and Marketing Guide. average of 5.25 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 33 The financial and managerial resources of Lisco, and hereby are, approved. The acquisition of O & F 0 & F and their respective bank subsidiaries and their shall not be consummated before the thirtieth calendar future prospects are consistent with approval. Consid- day following the effective date of this Order, or later erations relating to convenience and needs of the than three months after the effective date of this community to be served are also consistent with Order, unless such period is extended for good cause approval. by the Board or by the Federal Reserve Bank of Lisco has also applied, pursuant to section 4(c)(8), Kansas City, pursuant to delegated authority. The to acquire indirectly the existing lending and insurance determinations as to O & F's nonbanking activities are subsidiaries of O & F. These activities are permissible subject to all of the conditions contained in Regulation for bank holding companies under sections Y, including those in sections 225.4(d) and 225.23(b)(3) 225.25(b)(1),(8)(i) and (8)(iii) of the Board's Regulation (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to the Y (12 C.F.R. 225.25(b)(1),(8)(i) and (8)(iii). Lisco does Board's authority to require such modification or not operate any nonbanking subsidiaries that compete termination of the activities of a holding company or with these companies. Further, there is no evidence in any of its subsidiaries as the Board finds necessary to the record to indicate that approval of this proposal assure compliance with the provisions and purposes of would result in undue concentration of resources, the BHC Act and the Board's regulations and orders decreased or unfair competition, conflicts of interests, issued thereunder, or to prevent evasion thereof. unsound banking practices, or other adverse effects on By order of the Board of Governors, effective the public interest. Accordingly, the Board has deter- November 29, 1989. mined that the balance of public interest factors it must consider under section 4(c)(8) of the BHC Act is Voting for this action: Chairman Greenspan and Governors favorable and consistent with approval of this applica- Johnson, Seger, Angell, Kelley, and LaWare. tion. Based on the foregoing and other facts of record, the WILLIAM W. WILES Board has determined that the applications should be, Secretary of the Board 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. Effective Applicant Bank(s) date FirsTier Financial, Inc., Scottsbluff National Corporation, November 21, 1989 Omaha, Nebraska Scottsbluff, Nebraska Huntington Bancshares Incorporated, First Banc Securities, Inc., November 22, 1989 Columbus, Ohio Morgantown, West Virginia Huntington Bancshares of West Virginia, Inc., Columbus, Ohio Legal Developments continued on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1990 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 Allegheny Bankshares First National Bank in Marlinton, Richmond November 3, 1989 Corporation, Marlinton, West Virginia Lewisburg, West Virginia American State Financial Brownfield State Bank, Dallas November 13, 1989 Corporation of Delaware, Brownfield, Texas Wilmington, Delaware American State Bank, Lubbock, Texas Liberty State Bank, Lubbock, Texas American State Bank of Snyder, Snyder, Texas Bancroft State Bancshares, Inc., Bancroft State Bank, Chicago November 8, 1989 Bancroft, Wisconsin Bancroft, Wisconsin Bancshares of McLouth, Inc., The Bank of McLouth, Kansas City November 16, 1989 McLouth, Kansas McLouth, Kansas BankersTrust of Alabama, Inc., Bankers Trust of Madison, Atlanta November 1, 1989 Madison, Alabama Madison, Alabama Barrow Bancshares, Inc., Barrow Bank & Trust Company, Atlanta October 30, 1989 Winder, Georgia Winder, Georgia Blue Valley Ban Corp., Bank of Blue Valley, Kansas City October 26, 1989 Leawood, Kansas Overland Park, Kansas Buckley Bancorp, Inc., Buckley State Bank, Chicago November 1, 1989 Buckley, Illinois Buckley, Illinois Capitol Bancorp, Ltd., Portage Commerce Bank, Chicago November 10, 1989 Lansing, Michigan Portage, Michigan Constitution Bancorp, Inc., CB Interim State Bank, Philadelphia November 3, 1989 Philadelphia, Pennsylvania Philadelphia, Pennsylvania Constitution Bank, Philadelphia, Pennsylvania Crestar Financial Corporation, The Northern Virginia Banking Richmond November 15, 1989 Richmond, Virginia Corporation, Sterling, Virginia Drummond Banking Company, Drummond Community Bank, Atlanta November 16, 1989 Chiefland, Florida Chiefland, Florida El Capitan Bancshares, Inc., El Capitan National Bank, San Francisco November 20, 1989 Sonora, California Sonora, California F & M Financial Services St. Francis State Bank, Chicago October 30, 1989 Corporation, St. Francis, Wisconsin Menomonee Falls, Wisconsin Financial Institutions, Inc., Salamanca Trust Company, New York November 13, 1989 Warsaw, New York Salamanca, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 35 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Firstar Corporation, Park Forest Holdings, Inc., Chicago November 13, 1989 Milwaukee, Wisconsin Omaha, Nebraska Firstar Corporation of Illinois, Milwaukee, Wisconsin Ford Bank Group, Inc., First Canyon Bancorporation, Dallas November 10, 1989 Lubbock, Texas Inc., Canyon, Texas First Canyon Bancshares, Inc., Canyon, Texas The First National Bank in Canyon, Canyon, Texas First Borger Bancshares, Inc., Borger, Texas First National Bank of Borger, Borger, Texas Permian Financial Corporation, Crane, Texas First State Bank, Crane, Texas Graymont Bancorp, Inc., State Bank of Graymont, Chicago October 26, 1989 Graymont, Illinois Graymont, Illinois The H. Pat Henson Company, Peoples State Bank, Kansas City November 6, 1989 Maysville, Oklahoma Blair, Oklahoma Hi-Bancorp, Inc., GNP Bancorp, Inc., Chicago November 1, 1989 High wood, Illinois Mundelein, Illinois Holly Grove Bancshares, Inc., Bank of Holly Grove, St. Louis November 10, 1989 Holly Grove, Arkansas Holly Grove, Arkansas Hometown Bancshares, Inc., Universal Banc Corp., Cleveland November 17, 1989 Middlebourae, West Virginia Paden City, West Virginia Kansas Bank Corporation, Elkhart Financial Corporation, Kansas City November 13, 1989 Liberal, Kansas Elkhart, Kansas Liberty National Bancorp, Inc., The Community Bank, Inc., St. Louis October 27, 1989 Louisville, Kentucky Erlanger, Kentucky KBT Bancshares, Inc., Madisonville, Kentucky Maryland Publick Banks, Inc., The Annapolis National Bank Richmond November 17, 1989 Annapolis, Maryland (in organization), Annapolis, Maryland North Bancorp, Inc., First National Bank of Gaylord, Chicago November 14, 1989 Gaylord, Michigan Gaylord, Michigan Norwest Corporation, First Bellevue Bancshares, Co., Minneapolis October 27, 1989 Minneapolis, Minnesota Bellevue, Nebraska Peotone Bancorp, Inc., Rock River Bancorporation, Chicago November 8, 1989 Peotone, Illinois Oregon, Illinois Prairie Bancorp, Inc., The First National Bank of Chicago November 8, 1989 Manlius, Illinois Manlius, Manlius, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1990 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Primo Financial Services, Inc., State Bank of Hampton, Minneapolis November 16, 1989 Apple Valley, Minnesota Hampton, Minnesota Southern Crescent Financial Clayton National Bank, Atlanta November 3, 1989 Corp., Morrow, Georgia Jonesboro, Georgia Southside Bancshares Corp., Farmers and Merchants Bank of St. Louis November 6, 1989 St. Louis, Missouri Berger, Berger, Missouri Synovus Financial Corp., Bank of Pensacola, Atlanta November 9, 1989 Columbus, Georgia Pensacola, Florida TB&C Bancshares, Inc., Columbus, Georgia The Union of Arkansas Financial Properties, Inc., St. Louis November 2, 1989 Corporation, Jacksonville, Arkansas Little Rock, Arkansas United Bank Corporation of The First National Bank of New York October 27, 1989 New York, Lisbon, Downsville, New York Lisbon, New York Valley Capital Corporation, First Business Bank of Arizona, San Francisco October 31, 1989 Las Vegas, Nevada Phoenix, Arizona Village Financial Services, Ltd., Village Savings Bank, New York November 3, 1989 Port Chester, New York Port Chester, New York Weld State Company, The First National Bank of Kansas City November 9, 1989 Fort Lupton, Colorado Windsor, Windsor, Colorado WRZ Bankshares, Inc., Peoples State Bank, Minneapolis November 3, 1989 Plainview, Minnesota Plainview, Minnesota Section 4 Nonbanking Reserve Effective Applicant Activity/Company Bank date Ace Gas Inc., Gibbon Exchange Company, Kansas City October 25, 1989 Deshler, Nebraska Gibbon, Nebraska Elmwood Bancshares, Inc., Warren E. Stenwall d/b/a Chicago November 14, 1989 Elm wood, Illinois Stenwall Insurance Agency, Elmwood, Illinois First Busey Corporation, MRCG, Inc. d/b/a The Marcom Chicago November 22, 1989 Urbana, Illinois Group, Champaign, Illinois First of America Bank The Security First Corporation, Chicago October 27, 1989 Corporation, Peoria, Illinois Kalamazoo, Michigan First State Bancorp, Inc., American Mortgage and Real Chicago November 20, 1989 Harwood Heights, Illinois Estate Services, Inc., Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 37 Section 4—Continued Nonbanking Reserve Effective Applicant Activity/Company Bank date The Hongkong and Shanghai Marine Midland Banks, Inc., New York November 14, 1989 Banking Corporation Limited, Buffalo, New York Hong Kong, B.C.C. Kellett N.V., Curacao, Netherlands Antilles HSBC Holdings B.V., Amsterdam, the Netherlands Liberty National Bancorp, Inc., Banker's Investment Group, St. Louis November 9, 1989 Louisville, Kentucky Inc., Louisville, Kentucky MNC Financial, Inc., ABTS, Inc., Richmond October 27, 1989 Baltimore, Maryland Rock Hill, South Carolina Oesterreichische Laenderbank LB Credit Corporation, New York November 8, 1989 Aktiengesellschaft, San Francisco, California Vienna, Austria Security Pacific Corporation, Sumisei Secpac Investment San Francisco November 14, 1989 Los Angeles, California Advisors, Inc., Los Angeles, 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 American Bank of St. Louis, American Bank of St. Louis St. Louis October 31, 1989 St. Louis, Missouri County, Chesterfield, Missouri CivicBank of Commerce, Meridian National Bank, San Francisco November 9, 1989 Oakland, California Concord, California First of America Bank-Northern Antrim County State Bank, Chicago November 14, 1989 Michigan, Mancelona, Michigan Cheboygan, Michigan Liberty Bank-Oakland, Liberty State Bank & Trust, Chicago November 8, 1989 Troy, Michigan Hamtramck, Michigan Villa Grove State Bank, The First National Bank of Villa Chicago November 10, 1989 Villa Grove, Illinois Grove, Villa Grove, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1990 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. Executive National Bank v. Board of Governors, Nos. extent in additional securities underwriting and deal- 89-4831, 89-4852 (5th Cir., filed November 6, ing activities. 1989). Petition for declaratory judgment that a American Land Title Assoc. v. Board of Governors, bank holding company application to the Board No. 88-1872 (D.C. Cir., filed December 16, 1988). was deemed approved by operation of law pursu- Petition for review of Board order ruling that exant to the Board's 91-day rule. Dismissed on emption G from the section 4(c)(8) prohibition on November 16, 1989. insurance activities, which grandfathers insurance Consumers Union of U.S., Inc. v. Board of Gover- agency activities by bank holding companies that nors, No. 89-3008 (D.D.C., filed November 1, conducted insurance agency activities before Janu- 1989). Challenge to various aspects of Regulation Z ary 1, 1971, does not limit those grandfathered implementing the Home Equity Loan Consumer activities to the specific ones undertaken at that Protection Act. time. Awaiting decision. Board of Governors v. Consolidated Bancorp, No. MCorp v. Board of Governors, No. CA3-88-2693 W-89-CA251 (W.D. Tex., filed September 8, 1989); (N.D. Tex., filed October 10, 1988). Application for Consolidated Bancorp v. Board of Governors, No. injunction to set aside temporary cease and desist AP-89-6081 (Bankr. W.D. Tex., filed September 15, orders. Stayed pending outcome of MCorp v. Board 1989). Actions to enforce, and to enjoin, administra- of Governors in Fifth Circuit. tive subpoena against bank holding company. Stip- White v. Board of Governors, No. CU-S-88-623-RDF ulations of dismissal filed November 27, 1989. (D. Nev., filed July 29, 1988). Age discrimination First Savings Bank v. Federal Reserve System, et al., complaint. No. 89-4117 (D.S.D., filed August 31, 1989). Com- Baugh v. Board of Governors, No. C88-3037 (N.D. plaint seeking injunction against Board order ap- Iowa, filed April 8, 1988). Third party complaint proving branch application. Dismissed November alleging breach of duty under Federal Reserve Act. 21, 1989. Dismissed July 3, 1989. Synovus Financial Corp. v. Board of Governors, No. Bonilla v. Board of Governors, No. 88-1464 (7th Cir., 89-1394 (D.C. Cir., filed June 21, 1989). Petition for filed March 11, 1988). Petition for review of Board review of Board order permitting relocation of a order of removal. Dismissed November 14, 1989. bank holding company's national bank subsidiary Cohen v. Board of Governors, No. 88-1061 (D.N.J., from Alabama to Georgia. filed March 7, 1988). Action seeking disclosure of MCorp v. Board of Governors, No. 89-2816 (5th Cir., documents under the Freedom of Information Act. filed May 2, 1989). Appeal of preliminary injunction Chase Manhattan Corp. v. Board of Governors, No. against the Board enjoining pending and future 87-1333 (D.C. Cir., filed July 20, 1987). Petition to enforcement actions against bank holding company review order conditionally approving application for now in bankruptcy. Awaiting decision. bank holding company to underwrite and deal in Independent Insurance Agents of America v. Board of mortgage-related securities to a limited extent. Governors, No. 89-4030 (2d Cir., filed March 9, Stayed by stipulation pending expiration of morato- 1989). Petition for review of Board order ruling that rium or Board reconsideration. the non-banking restrictions of section 4 of the Bank Lewis v. Board of Governors, Nos. 87-3455, 87-3545 Holding Company Act apply only to non-bank sub- (11th Cir., filed June 25, August 3, 1987). Petition for sidiaries of bank holding companies. Petition for review of Board orders approving applications of review denied November 29, 1989. non-Florida bank holding companies to expand activ- Securities Industry Association v. Board of Gover- ities of Florida trust company subsidiaries. Matter nors, No. 89-1127 (D.C. Cir., filed February 16, stayed pending Supreme Court review of Continental 1989). Petition for review of Board order permitting Illinois Corp. v. Lewis, 827 F.2d 1517 (11th Cir. five bank holding companies to engage to a limited 1987). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics NOTE. The following tables may have some 3.11, 3.15-3.20, 3.22-3.25, 3.27, 3.28, and 4.30. discontinuities in historical data for some series For a more detailed explanation of the changes, beginning with the December 1989 issue: 1.12, see the announcement on page 16 of the January 1.33, 1.44, 1.52, 1.57-1.60, 2.10, 2.12, 2.13, 3.10, 1990 Bulletin. CONTENTS COMMERCIAL BANKING INSTITUTIONS A17 Major nondeposit funds Domestic Financial Statistics A18 Assets and liabilities, last-Wednesday-of-month series WEEKLY REPORTING COMMERCIAL BANKS MONEY STOCK AND BANK CREDIT Assets and liabilities A3 Reserves, money stock, liquid assets, and debt A19 All reporting banks measures A20 Banks in New York City A4 Reserves of depository institutions, Reserve A21 Branches and agencies of foreign banks Bank credit A22 Gross demand deposits—individuals, A5 Reserves and borrowings—Depository partnerships, and corporations institutions A6 Selected borrowings in immediately available funds—Large member banks FINANCIAL MARKETS A23 Commercial paper and bankers dollar acceptances outstanding POLICY INSTRUMENTS 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 A15 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

43 Federal Reserve Bulletin • January 1990 SECURITIES MARKETS AND A56 U.S. reserve assets CORPORATE FINANCE A56 Foreign official assets held at Federal Reserve A34 New security issues—State and local Banks governments and corporations A57 Foreign branches of U.S. banks—Balance A35 Open-end investment companies—Net sales sheet data and asset position A59 Selected U.S. liabilities to foreign official A35 Corporate profits and their distribution institutions 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 A37 Mortgage markets A38 Mortgage debt outstanding A63 Banks' own and domestic customers' claims on foreigners A63 Banks' own claims on unaffiliated foreigners CONSUMER INSTALLMENT CREDIT A64 Claims on foreign countries—Combined A39 Total outstanding and net change domestic offices and foreign branches A40 Terms RREEPPOORRTTEEDD BBYY NNOONNBBAANNKKIINNGG BBUUSSIINNEESSSS FLOW OF FUNDS EENNTTEERRPPRRIISSEESS IINN TTHHEE UUNNIITTEEDD SSTTAATTEESS A41 Funds raised in U.S. credit markets A65 Liabilities to unaffiliated foreigners A43 Direct and indirect sources of funds to credit markets A66 Claims on unaffiliated foreigners A44 Summary of credit market debt outstanding A45 Summary of credit market claims, by holder SECURITIES HOLDINGS AND TRANSACTIONS Domestic Nonfinancial Statistics A67 Foreign transactions in securities A68 Marketable U.S. Treasury bonds and SELECTED MEASURES notes—Foreign transactions A46 Nonfinancial business activity—Selected measures INTEREST AND EXCHANGE RATES A47 Labor force, employment, and unemployment A48 Output, capacity, and capacity utilization A69 Discount rates of foreign central banks A49 Industrial production—Indexes and gross value A69 Foreign short-term interest rates A51 Housing and construction A52 Consumer and producer prices A70 Foreign exchange rates A53 Gross national product and income A54 Personal income and saving A71 Guide to Tabular Presentation, Statistical Releases, and Special Tables International Statistics SPECIAL TABLE SUMMARY STATISTICS A55 U.S. international transactions—Summary All Assets and liabilities of commercial banks, A56 U.S. foreign trade 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 Q4 Q1 Q2 Q3r June Julyr Aug/ Sept/ Oct. Reserves of depository institutions2 1 Total -.8 -4.2 -8.7 .3 -8.0 7.2 1.1 9.6 8.1 2 Required -1.5 -4.4 -7.6 .1 -5.5 6.0 2.8 8.6 6.5 3 Nonborrowed 5.3 .0 -10.2 8.3 -3.4 24.2 1.5 9.3 11.0 4 Monetary base3 4.8 4.6 1.5 3.0 3.1 4.0 1.3 7.4 2.8 Concepts of money, liquid assets, and debt4 5 Ml 2.3 -.4 -5.6 1.5 -4.7r 10.7 .5 5.6 10.1 6 M2 3.6 1.8 1.2 7.3 6.2 11.4 7.4 7.4 7.7 7 M3 4.8 3.7 2.9 4.6 5.7 8.7 2.0 1.0 4.5 8 L 5.5 5.0 4.7 4.9 3.3 8.7 4.9 2.9 n.a. 9 Debt 8.9 8.4 7.6 7.5 6.5 6.5 9.5 8.4 n.a. Nontransaction components 10 In M2 4.1 2.6 3.5 9.3 9.8 11.7 9.7 8.1 7.0 11 In M3 only6 9.3 10.6 9.2 -4.9 4.0 -.6 -17.0 -22.2 -7.6 Time and savings deposits Commercial banks 12 Savings 4.0 -3.7 -14.2 -.2 -6.6 3.3 7.3 7.9 5.6 13 Small-denomination time 18.0 22.5 29.0 10.4 12.0 7.2 7.5 4.6 13.1 14 Large-denomination time9'10 13.0 18.1 17.7 1.9 1.8 3.9 -2.1 -3.5 6.4 Thrift institutions 15 Savings -2.5 -7.7 -19.0 -6.7 -9.1 -5.4 -1.8 4.0 3.4 16 Small-denomination time 6.6 4.3 14.0' 9.8 15.5r 9.2 5.2 -2.9 -11.9 17 Large-denomination time9 8.0 1.2 5.9 -9.6 1.9 -8.3 -22.5 -29.4 -34.3 Debt components4 18 Federal 7.6 7.7 6.9 5.4 4.3 .1 11.0 12.8 n.a. 19 Nonfederal 9.2 8.6 7.8 8.1 7.2 8.4 9.0 7.0 n.a. 1. Unless otherwise noted, rates of change are calculated from average institutions and money market funds. Also excludes all balances held by U.S. amounts outstanding in preceding month or quarter. commercial banks, money market funds (general purpose and broker-dealer), 2. Figures incorporate adjustments for discontinuities associated with the foreign governments and commercial banks, and the U.S. government. implementation of the Monetary Control Act and other regulatory changes to M3: M2 plus large-denomination time deposits and term RP liabilities (in reserve requirements. To adjust for discontinuities due to changes in reserve amounts of $100,000 or more) issued by commercial banks and thrift institutions, requirements on reservable nondeposit liabilities, the sum of such required term Eurodollars held by U.S. residents at foreign branches of U.S. banks reserves is subtracted from the actual series. Similarly, in adjusting for discon- worldwide and at all banking offices in the United Kingdom and Canada, and tinuities in the monetary base, required clearing balances and adjustments to balances in both taxable and tax-exempt, institution-only money market mutual compensate for float also are subtracted from the actual series. funds. Excludes amounts held by depository institutions, the U.S. government, 3. The monetary base not adjusted for discontinuities consists of total money market funds, and foreign banks and official institutions. Also subtracted reserves plus required clearing balances and adjustments to compensate for float is the estimated amount of overnight RPs and Eurodollars held by institution-only at Federal Reserve Banks plus the currency component of the money stock less money market mutual funds. the amount of vault cash holdings of thrift institutions that is included in the L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term currency component of the money stock plus, for institutions not having required Treasury securities, commercial paper and bankers acceptances, net of money reserve balances, the excess of current vault cash over the amount applied to market mutual fund holdings of these assets. satisfy current reserve requirements. After the introduction of contemporaneous Debt: Debt of domestic nonfinancial sectors consists of outstanding credit reserve requirements (CRR), currency and vault cash figures are measured over market debt of the U.S. government, state and local governments, and private the weekly computation period ending Monday. nonfinancial sectors. Private debt consists of corporate bonds, mortgages, con- Before CRR, all components of the monetary base other than excess reserves sumer credit (including bank loans), other bank loans, commercial paper, bankers are seasonally adjusted as a whole, rather than by component, and excess acceptances, and other debt instruments. The source of data on domestic reserves are added on a not seasonally adjusted basis. After CRR, the seasonally nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt adjusted series consists of seasonally adjusted total reserves, which include data are based on monthly averages. Growth rates for debt reflect adjustments for excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted discontinuities over time in the levels of debt presented in other tables. currency component of the money stock plus the remaining items seasonally 5. Sum of overnight RPs and Eurodollars, money market fund balances adjusted as a whole. (general purpose and broker-dealer), MMDAs, and savings and small time 4. Composition of the money stock measures and debt is as follows: deposits less the estimated amount of demand deposits and vault cash held by Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults thrift institutions to service their time and savings deposit liabilities. of depository institutions; (2) travelers checks of nonbank issuers; (3) demand 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, deposits at all commercial banks other than those due to depository institutions, money market fund balances (institution-only), less a consolidation adjustment the U.S. government, and foreign banks and official institutions less cash items in that represents the estimated amount of overnight RPs and Eurodollars held by the process of collection and Federal Reserve float; and (4) other checkable institution-only money market mutual funds. deposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- 7. Excludes MMDAs. matic transfer service (ATS) accounts at depository institutions, credit union 8. Small-denomination time deposits—including retail RPs—are those issued share draft accounts, and demand deposits at thrift institutions. in amounts of less than $100,000. All IRA and Keogh accounts at commercial M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) banks and thrifts are subtracted from small time deposits. issued by all commercial banks and overnight Eurodollars issued to U.S. residents 9. Large-denomination tjme 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

A10 Domestic Financial Statistics • January 1990 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending FFFaaaccctttooorrrsss 1989 1989 Aug. Sept. Oct. Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 259,232 261,299 260,634 259,729 261,949 263,247 264,774 260,753 261,148 258,069 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 218,753 219,475 215,920 219,051 219,444 219,798 221,348 216,847 216,270 212,859 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 218,753 219,018 215,920 219,051 218,362 219,099 221,168 216,847 216,270 212,859 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 457 0 0 1,082 699 180 0 0 0 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 6,609 6,762 6,546 6,555 6,810 7,014 6,698 6,555 6,555 6,542 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 6,609 6,562 6,546 6,555 6,555 6,555 6,555 6,555 6,555 6,542 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 200 0 0 255 459 143 0 0 0 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 685 636 608 480 746 818 978 818 488 376 1111100000 FFFFFllllloooooaaaaattttt 568 879 734 592 1,007 1,118 532 550 898 873 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 32,619 33,546 36,825 33,049 33,940 34,498 35,219 35,982 36,936 37,420 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,066 11,066 11,064 11,066 11,066 11,065 11,065 11,064 11,063 11,063 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt............... 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 19,318 19,391 19,462 19,354 19,372 19,386 19,400 19,414 19,446 19,467 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 249,102 248,937 249,190 250,214 248,808 247,601 247,882 249,530 249,802 249,244 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss22222 429 431 439 424 435 436 440 436 439 439 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 5,437 7,679 6,111 4,549 6,486 12,316 10,691 5,103 6,154 5,389 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 250 257 245 270 243 236 312 241 260 221 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,889 1,846 1,866 1,769 1,914 1,835 1,940 2,045 1,815 1,817 2222200000 OOOOOttttthhhhheeeeerrrrr 314 351 327 272 419 412 310 257 247 332 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 7,948 7,572 8,091 7,378 7,619 7,743 8,654 8,591 7,825 7,654 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss33333 32,765 33,201 33,410 33,793 34,980 31,637 33,527 33,546 33,634 32,022 End-of-month figures Wednesday figures 1989 1989 Aug. Sept. Oct. Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 256,914 264,137 264,717 260,727 272,423 263,276 266,279 262,185 265,872 257,290 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 217,409 221,051 218,176 219,188 226,447 220,565 220,283 215,035 218,961 211,871 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 217,409 221,051 218,176 219,188 218,876 219,058 220,283 215,035 218,961 211,871 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 0 0 7,571 1,507 0 0 0 0 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 6,609 6,555 6,525 6,555 8,340 7,613 6,555 6,555 6,555 6,525 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 6,609 6,555 6,525 6,555 6,555 6,555 6,555 6,555 6,555 6,525 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 0 0 1,785 1,058 0 0 0 0 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 541 598 270 483 962 585 3,485 476 402 397 3333322222 FFFFFllllloooooaaaaattttt 634 501 1,471 723 1,807 804 234 2,102 2,218 622 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 31,722 35,433 38,275 33,778 34,866 33,708 35,722 38,018 37,736 37,876 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk22222 11,066 11,065 11,062 11,066 11,065 11,065 11,065 11,064 11,063 11,063 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt............... 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 19,344 19,425 19,494 19,354 19,372 19,386 19,400 19,414 19,446 19,467 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 249,245 247,581 249,025 249,832 248,239 247,644 248,597 250,053 249,600 248,954 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 420 440 444 424 435 440 435 439 438 442 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 6,652 13,452 13,124 5,458 11,476 9,768 4,728 4,558 6,138 5,827 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 265 326 252 187 192 335 322 305 217 214 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,611 1,630 1,623 1,602 1,602 1,630 1,630 1,625 1,625 1,623 4444422222 OOOOOttttthhhhheeeeerrrrr 273 318 292 265 299 376 278 217 277 810 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 7,063 8,776 8,303 7,488 7,636 7,659 8,537 7,695 7,612 7,450 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss33333 30,313 30,623 30,728 34,409 41,499 34,392 40,735 36,289 38,993 31,019 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 averages9 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1986 1987 1988 1989 Dec. Dec. Dec. Apr. May June July Aug. Sept/ Oct. 1 Reserve balances with Reserve Banks2 37,360 37,673 37,830 35,832 33,199 33,852 33,902 32,823 33,556 33,123 2 Total vault cash 24,077 26,185 27,197 26,746 27,166 27,151 27,851 28,358 28,085 28,900 3 Vault4 22,199 24,449 25,909 25,456 25,712 25,735 26,351 26,735 26,570 27,274 4 Surplus 1,878 1,736 1,288 1,290 1,454 1,416 1,500 1,622 1,515 1,626 5 Total reserves 59,560 62,123 63,739 61,288 58,911 59,587 60,254 59,559 60,126 60,397 6 Required reserves i 58,191 61,094 62,699 60,511 57,881 58,681 59,288 58,674 59,188 59,377 7 Excess reserve balances at Reserve Banks 1,369 1,029 1,040 776 1,031 905 966 885 938 1,020 8 Total borrowings at Reserve Banks 827 777 1,716 2,289 1,720 1,490 694 675 693 555 9 Seasonal borrowings at Reserve Banks 38 93 130 213 345 431 497 490 452 330 10 Extended credit at Reserve Banks 303 483 1,244 1,707 1,197 917 106 41 22 21 Biweekly averages of daily figures for weeks ending 1989 July 12 July 26 Aug. 9 Aug. 23 Sept. 6 Sept. 20 Oct. 4r Oct. 18r Nov. 1 Nov. 15 11 Reserve balances with Reserve Banks2 .... 34,866 33,410 32,969 32,599 33,053 34,424r 32,643 33,581 32,778 34,477 12 Total vault cash3 27,607 27,948 28,166 28,852 27,710 28,095 28,298 29,096 28,875 27,907 13 Vault4 . j 26,191 26,432 26,513 27,212 26,153 26,660 26,695 27,531 27,176 26,550 14 Surplus5.... 1,416 1,517 1,654 1,640 1,557 1,436 1,603 1,565 1,699 1,357 15 Total reserves 61,057 59,842 59,481 59,810 59,206 61,083r 59,338 61,112 59,954 61,027 1 1 6 7 R Ex eq c u es ir s e d re s re e s rv e e rv b es a lances at Reserve Banks i 60,0 9 6 9 7 0 58 1 , , 8 0 0 3 7 5 58,7 71 6 5 6 58,8 95 5 1 9 58,2 9 4 5 7 9 60,1 8 9 8 5 8 r 58,3 9 4 9 3 6 60,1 9 8 2 6 6 58 1 , , 8 1 2 2 5 9 60,1 8 6 5 8 9 18 Total borrowings at Reserve Banks 717 681 676 753 538 614 898 653 345 272 19 Seasonal borrowings at Reserve Banks .. 483 509 497 489 485 438 453 342 280 147 20 Extended credit at Reserve Banks 146 90 55 44 22 21 25 19 23 20 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

A10 Domestic Financial Statistics • January 1990 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 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 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 67,062 68,826 75,509 73,925 73,746 68,346 74,471 70,886 69,448 2 For all other maturities 9,116 9,587 9,855 11,130 9,815 11,332 9,940 9,829 10,114 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 29,991 30,448 27,666 30,134 30,192 30,730 28,709 30,368 26,454 4 For all other maturities 6,386 5,512 5,717 5,909 6,304 5,929 6,545 7,418 7,778 Repurchase agreements on U.S. government and federal agency securities in immediately available funds Brokers and nonbank dealers in securities 5 For one day or under continuing contract 13,871 13,982 13,782 12,595 15,950 13,810 14,929 15,392 14,634 6 For all other maturities 12,740 12,743 12,756 13,485 11,758 12,474 10,352 10,890 10,659 All other customers 7 For one day or under continuing contract 27,945 29,260 27,481 27,613 30,296 25,402 30,312 30,307 29,321 8 For all other maturities 10,022 10,847 10,572 10,962 10,845 15,064 9,790 9,651 9,790 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 34,037 36,653 38,783 35,279 34,268 34,582 39,202 35,912 39,237 10 To all other specified customers2 14,675 13,523 14,176 12,805 12,408 11,810 13,277 13,936 14,108 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 ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk 11/ O 24 n / 89 Ef d fe a c te ti ve Pre ra v t i e o us 11/ O 24 n / 89 Eff d e a c te ti ve Pre r v at i e o us 11/ O 24 n / 89 Ef d fe a c te ti ve Pre ra v t i e o us Effective date Boston 7 2/24/89 6Vl 7 2/24/89 6 Vi 9.00 11/16/89 9.15 11/2/89 New York 2/24/89 2/24/89 11/16/89 11/2/89 Philadelphia 2/24/89 2/24/89 11/16/89 11/2/89 Cleveland 2/24/89 2/24/89 11/16/89 11/2/89 Richmond 2/24/89 2/24/89 11/16/89 11/2/89 Atlanta 2/24/89 2/24/89 11/16/89 11/2/89 Chicago 2/24/89 2/24/89 11/16/89 11/2/89 St. Louis 2/24/89 2/24/89 11/16/89 11/2/89 Minneapolis 2/24/89 2/24/89 11/16/89 11/2/89 Kansas City 2/24/89 2/24/89 11/16/89 11/2/89 D Sa a n ll a F s r ancisco ... 7 2 2 / / 2 2 7 4 / / 8 8 9 9 6 Vl 7 2 2 / / 2 2 7 4 / / 8 8 9 9 6Vl 9.00 1 1 1 1 / / 1 1 6 6 / / 8 8 9 9 9.15 1 11 1 / / 2 2 / / 8 8 9 9 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or Effective date A le l v l e F l) . — R. B o an f k Efifectiv 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. Banks N.Y. Banks N.Y. Banks I 1 n 9 7 e 8 ff — ec M J t a D a n y . e c. 2 1 9 0 1 3 1, 1977 6 6V 6 -6 6 S V V -7 i i 6 6 7 6 V >/ 2 2 1980-—— N S JJuu e o ll p yy v t . . 7 7 1 ? , 9 7 6 8 10 1 1 1 - 1 2 0 1 1 1 1 1 1 1 2 0 0 1984— N A o p v r. . 2 2 1 1 9 6 3 m S m l 9 A - 9 - 9 9 9 m m 12 7 7 Dec. 5 12-13 13 Dec. 24 8 8 J A u u ly g . 2 1 1 3 0 7 7 - 7 7 '/ 1 % 4 /4 7 7 7 1 3 W / / 4 4 1981-——MMaayy 8 S 13 1 - 4 1 4 1 1 4 4 1985—May 2 2 4 0 lV m l -% I I V V i l . 1979— N O J S u e c o l p y t v . t . . 2 2 2 1 2 0 0 1 3 6 s m 9 - 1 > 8m / 0 2 9 m 9 8 8 1 V 0 V V i i i 1982---JJ D AA N uull uu e o yy c gg v . .. . 7 7 4 ? 6 0 3 ? 1 i 1 m 1 — l 3 i 1 1 - - V 2 1 3 1 1 4 1 i 2 V i 1 I I 1 1 \ 2 3 3 \ I \ V Vi i 1986— J A A M u u p l a y g r r . . . 2 2 2 1 1 1 1 7 2 1 0 5 1 W 5 ^ - 1 6 V- 1 i 6 - Y i 1 i 1 1 6 6 5 5 W V Y l 1 A Se u p g t . . 2 1 1 0 9 7 1 lO 0 W - V 10 S V ' -l A 5 l 1 1 lO 1 0 ' / '^ S ? 1 7 3 6 lO lO -l 1 O V1 V i i \ 1 1m1 0 1987—Sept. 1 4 1 51A 6 -6 6 6 Oct. 2 1 8 1 0 11 1 1 - 1 2 1 2 1 1 1 1 2 2 Oct. 3 1 1 0 ? 3 9V 9 1 i l/ - 0 i \ Q 9 9 1 VV 0 i i 1988—Aug. 11 9 6 6 -6 V V 2 l ( 6 M Vi . 1980— M Fe a b y . 3 2 1 1 0 9 9 5 1 1 2 2 1 1 - - 3 2 1 1 3 3 1 1 1 1 3 3 2 3 N De o c v . . ? 7 1 1 1 ? 6 7 5 4 9 mm - 8 ~ 9 V 9 -9 V 9 i i 9 9 % 8 9 1/ V ! i I 1 n 9 8 e 9 ff — ec F t e N b. o v 2 2 . 7 4 2 4, 1989 6V 1 7 2-I 1 1 1 June 13 11-12 11 16 11 11 1. Adjustment credit is available on a short-term basis to help depository in no case will the rate charged be less than the basic discount rate plus 50 basis institutions meet temporary needs for funds that cannot be met through reason- points. The flexible rate is reestablished on the first business day of each able alternative sources. After May 19, 1986, the highest rate established for loans two-week reserve maintenance period. At the discretion of the Federal Reserve to depository institutions may be charged on adjustment credit loans of unusual Bank, the time period for which the basic discount rate is applied may be size that result from a major operating problem at the borrower's facility. shortened. Seasonal credit is available to help smaller depository institutions meet regular, 4. For earlier data, see the following publications of the Board of Governors: seasonal needs for funds that cannot be met through special industry lenders and Banking and Monetary Statistics, 1914-1941, and 1941-1970; Annual Statistical that arise from a combination of expected patterns of movement in their deposits Digest, 1970-1979. and loans. A temporary simplified seasonal program was established on Mar. 8, In 1980 and 1981, the Federal Reserve applied a surcharge to short-term 1985, and the interest rate was a fixed rate Yi 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

A10 Domestic Financial Statistics • January 1990 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Depository institution requirements after implementation of the Monetary Control Act Type of deposit, and deposit interval Percent of Effective date deposits Net transaction accounts3,4 $0 million-$40.4 million 3 12/19/89 More than $40.4 million 12 12/19/89 Nonpersonal time deposits5 By original maturity Less than Wl years 3 10/6/83 \Vl years or more 0 10/6/83 Eurocurrency liabilities All types 3 11/13/80 1. Reserve requirements in effect on Dec. 31, 1989. 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. ber institutions may maintain reserve balances with a Federal Reserve Bank 3. Transaction accounts include all deposits on which the account holder is indirectly on a pass-through basis with certain approved institutions. For previous permitted to make withdrawals by negotiable or transferable instruments, payreserve requirements, see earlier editions of the Annual Report or 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 change 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. 19, ment each year for the succeeding calendar year by 80 percent of the percentage 1989 for institutions reporting quarterly and Dec. 26, 1989 for institutions increase in the total reservable liabilities of all depository institutions, measured reporting weekly, the amount was decreased from $41.5 million to $40.4 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 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 22,604 18,983 8,223 0 3,077 311 0 0 0 00 2 Gross sales 2,502 6,051 587 0 0 321 571 5,517 934 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 1,000 9,029 2,200 0 0 1,200 1,200 2,400 800 0 Others within 1 year 5 Gross purchases 190 3,659 2,176 0 172 0 0 0 0 0 6 Gross sales 0 300 0 0 0 0 0 0 0 0 7 Maturity shift 18,674 21,504 23,854 2,646 1,657 2,863 1,828 1,749 4,200 1,832 8 Exchange -20,180 -20,388 -24,588 -2,322 -110 -3,628 -1,434 -1,073 -4,025 0 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 1,436 0 0 0 0 00 11 Gross sales 0 452 800 0 0 75 0 13 150 0 12 Maturity shift -17,058 -17,975 -17,720 -2,646 -1,532 -2,036 -1,828 -1,584 -3,321 -1,832 13 Exchange 16,985 18,938 22,515 2,322 0 3,328 1,434 787 3,425 0 5 to 10 years 14 Gross purchases 236 2,441 1,579 0 287 0 0 0 0 00 15 Gross sales 0 0 175 0 0 0 0 9 0 0 16 Maturity shift -1,620 -3,529 -5,946 0 -125 258 0 -165 -879 0 17 Exchange 2,050 950 1,797 0 110 200 0 286 400 0 Over 10 years 18 Gross purchases 158 1,858 1,398 0 284 0 0 0 0 00 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 0 -188 0 0 -1,086 0 0 0 0 21 Exchange 1,150 500 275 0 0 100 0 0 200 0 All maturities 22 Gross purchases 24,081 37,170 18,863 0 5,255 311 0 0 0 0 23 Gross sales 2,502 6,803 1,562 0 0 396 571 5,539 1,084 0 24 Redemptions 1,000 9,099 2,200 0 0 1,200 1,200 2,400 800 0 Matched transactions 25 Gross sales 927,999 950,923 1,168,484 83,677 77,349 123,029 128,139 123,373 146,611 116,502 26 Gross purchases 927,247 950,935 1,168,142 82,821 78,259 113,041 138,141 118,221 147,228 120,144 Repurchase agreements2 27 Gross purchases 170,431 314,621 152,613 0 22,244 31,419 66,,220033 44,,996611 0 99,,339966 28 Gross sales 160,268 324,666 151,497 0 12,547 41,117 6,203 4,961 0 9,396 29 Net change in U.S. government securities 29,988 11,234 15,872 -856 15,863 -20,971 8,232 -13,091 -1,267 3,642 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 00 0 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 398 276 587 0 125 0 0 45 0 54 Repurchase agreements2 33 Gross purchases 31,142 80,353 57,259 0 7,207 12,732 1,666 1,137 0 44,,001111 34 Gross sales 30,521 81,350 56,471 0 3,366 16,573 1,666 1,137 0 4,011 35 Net change in federal agency obligations 222 -1,274 198 0 3,716 -3,841 0 -45 0 -54 36 Total net change in System Open Market Account 30,212 9,961 16,070 -856 19,579 -24,812 8,232 -13,136 -1,267 3,588 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 • January 1990 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1989 1989 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Aug. Sept. Oct. Consolidated condition statement ASSETS 1 Gold certificate account 11,065 11,065 11,064 11,063 11,063 11,066 11,065 11,062 2 Special drawing rights certificate account 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 i 472 478 485 489 429 445 480 492 Loans 4 To depository institutions 585 3,485 476 401 397 542 598 270 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 6,555 6,555 6,555 6,555 6,525 6,609 6,555 6,525 8 Held under repurchase agreements 1,058 0 0 0 0 0 0 0 U.S. Treasury securities Bought outright 9 Bills 96,495 98,220 92,971 96,921 89,831 94,846 98,487 96,136 10 Notes 91,950 91,450 91,450 91,426 91,426 91,951 91,950 91,426 11 Bonds 30,614 30,614 30,614 30,614 30,614 30,613 30,614 30,614 12 Total bought outright1 219,058 220,283 215,035 218,961 211,871 217,409 221,051 218,176 13 Held under repurchase agreements 1,507 0 0 0 0 0 0 0 14 Total U.S. Treasury securities 220,565 220,283 215,035 218,961 211,871 217,409 221,051 218,176 15 Total loans and securities 228,764 230,324 222,065 225,917 218,793 224,560 228,203 224,971 16 Items in process of collection 6,130 6,677 11,059 8,119 5,958 6,206 6,909 10,120 17 Bank premises 775 775 111 777 111 776 775 775 Other assets 18 Denominated in foreign currencies3 24,286 26,844 27,114 28,533 28,572 21,292 26,411 28,953 19 All other4 8,647 8,103 10,128 8,426 8,526 9,655 8,247 8,548 20 Total assets 288,656 292,783 291,209 291,842 282,636 282,515 290,607 293,439 LIABILITIES 21 Federal Reserve notes 229,171 230,110 231,563 223311,,008811 223300,,335588 223300,,776666 222299,,007766 223300,,446677 Deposits 22 To depository institutions 36,021 42,365 37,914 40,617 32,642 31,924 32,253 32,351 2i U.S. Treasury—General account 9,768 4,728 4,558 6,138 5,827 6,652 13,452 13,124 24 Foreign—Official accounts 335 322 305 217 214 264 326 252 25 Other 376 278 217 277 810 275 318 292 26 Total deposits 46,501 47,693 42,994 47,249 39,492 39,116 46,348 46,018 27 Deferred credit items 5,326 6,443 8,958 5,900 5,336 5,572 6,408 8,649 28 Other liabilities and accrued dividends 2,903 2,961 2,917 2,854 2,651 3,072 3,080 2,819 29 Total liabilities 283,901 287,207 286,431 287,084 277,836 278,524 284,911 287,954 CAPITAL ACCOUNTS 30 Capital paid in 2,198 2,198 2,199 2,200 2,222 2,162 2,199 2,223 31 Surplus 2,112 2,112 2,112 2,112 2,112 1,809 2,112 2,112 32 Other capital accounts 445 1,266 467 446 465 22 1,385 1,150 33 Total liabilities and capital accounts 288,656 292,783 291,209 291,842 282,636 282,515 290,607 293,439 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 239,416 236,311 234,560 233,490 234,056 242,857 237,904 235,318 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 277,492 277,846 277,846 278,175 278,559 276,492 277,676 278,866 36 LESS: Held by bank 48,322 47,737 46,283 47,094 48,201 45,727 48,601 48,398 37 Federal Reserve notes, net 229,171 230,110 231,563 231,081 230,358 230,766 229,076 230,467 Collateral held against notes net: 38 Gold certificate account 11,065 11,065 11,064 11,063 11,063 11,066 11,065 11,062 3 4 9 0 O Sp th ec er i al e l d ig r i a b w le i n a g s s r e ig ts h ts certificate account 8,5180 8,5180 8,5180 8,5180 8,5180 8,5180 8,5180 8,5180 41 U.S. Treasury and agency securities 209,587 210,527 211,982 211,500 210,777 211,182 209,493 210,887 42 Total collateral 229,171 230,110 231,563 231,081 230,358 230,766 229,076 230,467 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 A11 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 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Aug. 31 Sept. 29 Oct. 31 1 Loans—Total 585 3,485 476 401 397 541 533 270 2 Within 15 days 511 3,274 249 379 378 354 455 193 3 16 days to 90 days 75 212 226 23 19 187 78 77 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. Treasury securities—Total 219,058 220,283 215,035 218,961 211,871 217,409 221,051 218,176 10 Within 15 days2 9,007 7,309 5,809 10,414 8,549 2,459 5,383 8,144 11 16 days to 90 days 51,446 52,824 48,787 48,491 45,903 50,331 54,519 48,677 12 91 days to 1 yeai 67,417 69,828 70,116 69,846 67,208 73,431 69,961 70,197 13 Over 1 year to 5 years 51,537 50,671 50,671 50,529 50,529 51,537 51,537 51,476 14 Over 5 years to 10 years 13,145 13,145 13,145 13,175 13,175 13,145 13,145 13,175 15 Over 10 years 26,506 26,506 26,506 26,506 26,506 26,506 26,506 26,506 16 Federal agency obligations—Total 6,555 6,555 6,555 6,555 6,525 6,609 6,555 6,525 17 Within 15 days2 191 44 94 183 89 334 191 89 18 16 days to 90 days 619 759 665 589 635 472 619 672 19 91 days to 1 year 1,339 1,376 1,381 1,368 1,394 1,359 1,339 1,357 20 Over 1 year to 5 years 3,213 3,173 3,198 3,198 3,180 3,242 3,213 3,180 21 Over 5 years to 10 years 1,004 1,014 1,028 1,028 1,038 1,012 1,004 1,038 22 Over 10 years 189 189 189 189 189 189 189 189 1. Holdings under repurchase agreements are classified as maturing within 15 NOTE: Components may not add to totals due to rounding, days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • January 1990 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. Mar. Apr. May June July Aug. Sept/ Oct. Seasonally adjusted ADJUSTED FOR , CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 48.49 58.14 58.69 60.71 59.85 59.46 58.74 58.35 58.70 58.75 59.22 59.62 2 Nonborrowed reserves 47.17 57.31 57.92 58.99 58.04 57.17 57.02 56.86 58.00 58.08 58.53 59.07 3 Nonborrowed reserves plus extended credit4 47.67 57.62 58.40 60.23 59.38 58.88 58.22 57.78 58.11 58.12 58.55 59.09 4 Required reserves 47.44 56.77 57.66 59.67 58.90 58.69 57.71 57.44 57.73 57.87 58.29 58.60 5 Monetary base 219.51 241.45 257.99 275.50 278.61 278.67 278.33 279.06 279.98 280.29 282.02 282.68 Not seasonally adjusted 6 Total reserves3 49.59 59.46 60.06 62.21 58.94 60.01 57.72 58.41 58.95 58.30 58.91 59.14 7 Nonborrowed reserves 48.27 58.64 59.28 60.50 57.13 57.72 56.00 56.92 58.26 57.62 58.21 58.58 8 Nonborrowed reserves plus extended credit4 48.77 58.94 59.76 61.74 58.46 59.43 57.20 57.84 58.37 57.66 58.24 58.61 9 Required reserves 48.53 58.09 59.03 61.17 57.98 59.23 56.69 57.51 57.99 57.41 57.97 58.12 10 Monetary base 222.73 245.25 262.08 279.71 275.62 278.11 277.49 280.18 282.07 281.09 280.69 281.35 NOT ADJUSTED FOR , CHANGES IN RESERVE REQUIREMENTS" 11 Total reserves3 48.14 59.56 62.12 63.74 60.21 61.29 58.91 59.59 60.25 59.56 60.13 60.40 12 Nonborrowed reserves 46.82 58.73 61.35 62.02 58.40 59.00 57.19 58.10 59.56 58.88 59.43 59.84 13 Nonborrowed reserves plus extended credit4 47.32 59.04 61.83 63.27 59.73 60.71 58.39 59.01 59.67 58.93 59.45 59.86 14 Required reserves 47.08 58.19 61.09 62.70 59.25 60.51 57.88 58.68 59.29 58.67 59.19 59.38 15 Monetary base 223.53 247.71 266.16 283.18 278.94 281.52 280.54 283.27 285.36 284.23 283.76 284.47 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 2 1985 1986 1987 1988 Dec. Dec. Dec. Dec. Julyr Aug/ Sept/ Oct. Seasonally adjusted 1 Ml 620.5 725.9 752.3 790.3 777.1 777.4 781.1 787.6 2 M2 2,567.4 2,811.2 2,909.9 3,069.6r 3,117.4 3,136.5 3,156.0 3,176.4 3 M3 3,201.7 3,494.9 3,677.6 3,915.4 4,002.4 4,009.0 4,012.3 4,027.3 4 L 3,828.5 4,135.1 4,336.7 4,672.2 4,793.3 4,812.8 4,824.3 n.a. 5 Debt 6,741.5 7,597.0 8,316.1 9,081.1 9,482.3 9,557.1 9,623.6 n.a. Ml components 6 Currency3 167.8 180.5 196.4 211.8 218.0 218.4 219.3 219.7 7 Travelers checks 5.9 6.5 7.1 7.6 7.1 7.2 7.2 7.3 8 Demand deposits 267.3 303.2 288.3 288.6 278.8 277.5 277.3 280.4 9 Other checkable deposits 179.5 235.8 260.4 282.3 273.2 274.4 277.3 280.2 Nontransactions components 10 In M2 . 1,946.9 2,085.3 22,,115577..66 2,279.3 2,340.3 2,359.1 2,374.9 2,388.7 11 In M3 only8 634.3 683.7 767.7 845.8' 885.0 872.4 856.3 850.9 Savings deposits9 12 Commercial Banks 125.0 155.8 178.5 192.5 181.9 183.0 184.2 185.1 13 Thrift institutions 176.6 215.2 237.8 238.8 219.6 219.3 220.0 220.6 Small-denomination time deposits10 14 Commercial Banks 383.3 364.6 385.3 443.1 504.9 508.1 510.1 515.6 15 Thrift institutions 499.2 489.3 528.8 582.2 621.3 624.0 622.5 616.3 Money market mutual funds 16 General purpose and broker-dealer 176.5 208.0 221.1 239.4 274.6 285.5 294.8 301.5 17 Institution-only 64.5 84.4 89.6 87.6 98.2 100.6 99.1 98.7 Large-denomination time deposits11 18 Commercial Banks12 285.1 288.8 325.4 364.9 397.7 397.0 395.8 397.9 19 Thrift institutions 151.5 150.1 162.0 172.9 175.4 172.1 167.9 163.1 Debt components 20 Federal debt 1,585.8 1,805.8 1,957.4 2,113.5 2,184.5 2,204.6 2,228.1 n.a. 21 Nonfederal debt 5,155.7 5,791.2 6,358.6 6,967.6 7,297.8 7,352.5 7,395.5 n.a. Not seasonally adjusted 22 Ml 633.5 740.4 766.4 804.4 781.7 777.5 778.4 784.3 23 M2 2,576.2 2,821.1 2,918.7 3,077.3r 3,125.2 3,137.5 3,149.4 3,172.3 24 M3 3,213.3 3,507.4 3,688.6 3,925.2 4,004.1 4,010.6 4,010.4 4,024.7 25 L 3,841.5 4,150.0 4,350.9 4,685.6 4,784.2 4,807.5 4,819.1 n.a. 26 Debt 6,730.9 7,580.7 8,297.6 9,066.4 9,438.8 9,508.9 9,581.6 n.a. Ml components 27 Currency3 170.2 183.0 199.3 214.9 219.7 219.3 218.6 219.0 28 Travelers checks 5.5 6.0 6.5 6.9 8.1 8.1 7.7 7.3 29 Demand deposits 276.9 314.0 298.6 298.8 281.5 276.7 275.9 280.3 30 Other checkable deposits 180.9 237.4 262.0 283.7 272.4 273.3 276.2 277.7 Nontransactions components 31 M2 . 1,942.7 2,080.7 22,,115522..33 22,,227722..99 2,343.5 2,360.1 2,371.0 2,388.0 32 M3 only8 637.1 686.3 769.9 848.0 878.9 873.1 861.0 852.4 Money market deposit accounts 33 Commercial Banks 332.8 379.6 358.8 352.5 330.8 335.7 338.9 342.0 34 Thrift institutions 180.7 192.9 167.5 150.3 129.0 129.7 130.2 131.0 Savings deposits9 35 Commercial Banks 123.7 154.2 176.6 190.3 184.3 184.0 184.0 185.5 36 Thrift institutions 174.8 212.7 234.8 235.6 223.3 221.1 220.8 221.8 Small-denomination time deposits10 37 Commercial Banks 384.0 365.3 386.1 444.1 504.3 507.6 510.5 516.0 38 Thrift institutions 499.9 489.8 529.1 582.4 619.8 621.5 619.7 616.8 Money market mutual funds 39 General purpose and broker-dealer 176.5 208.0 221.1 239.4 274.6 285.5 294.8 301.5 40 Institution-only 64.5 84.4 89.6 87.6 98.2 100.6 99.1 98.7 Large-denomination time deposits" 41 Commercial Banks12 285.4 289.1 325.8 365.6 394.9 397.7 397.9 399.6 42 Thrift institutions 151.8 150.7 163.0 174.1 173.3 171.3 168.3 164.9 Debt components 43 Federal debt 1,583.7 1,803.9 1,955.6 2,111.8 2,164.2 2,183.6 2,208.3 n.a. 44 Nonfederal debt 5,147.1 5,776.8 6,342.0 6,954.6 7,274.6 7,325.3 7,373.3 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • January 1990 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. Bank group, or type of customer 1987 1988 Apr. May July Aug. DEBITS TO Seasonally adjusted Demand deposits 1 All insured banks 188,346.0 217,116.2 226,888.4 249,088.3 245,230.1 266,468.1 284,129.2 276,453.7 292,446.5 2 Major New York City banks 91,397.3 104,496.3 107,547.3 111,387.4 107,808.9 120,984.1 129,166.6 114,991.8 121,378.1 3 Other banks 96,948.8 112,619.8 119,341.2 137,700.9 137,421.3 145,483.9 154,962.7 161,461.9 171,068.3 4 ATS-NOW accounts 2,182.5 2,402.7 2,757.7 3,264.9 2,986.4 3,406.5 3,696.5 3,596.3 3,943.1 5 Savings deposits5 403.5 526.5 583.0 675.2 585.5 647.2 640.0 580.4 650.0 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 556.5 612.1 641.2 721.0 697.5 767.1 824.0 788.4 841.8 7 Major New York City banks 2,498.2 2,670.6 2,903.5 3,393.0 3,092.2 3,342.1 3,588.5 3,222.3 3,402.4 8 Other banks 321.2 357.0 376.8 440.4 433.9 467.5 501.8 512.6 548.8 9 ATS-NOW accounts 15.6 13.8 14.7 17.1 15.7 18.2 19.8 19.1 20.6 10 Savings deposits5 3.0 3.1 3.1 3.6 3.2 3.6 3.6 3.2 3.6 DEBITS TO Not seasonally adjusted Demand deposits3 11 All insured banks 188,506.7 217.125.1 227,010.7 264,581.6 238.265.6 274,861.8 295,522.8 268.243.0 304,407.5 12 Major New York City banks 91,500.1 110142,.651086..82 107,565.0 120,202.2 105.461.7 121,507.2 134,020.7 117.276.1 132,158.8 13 Other banks 97,006.7 119,445.7 144,379.4 132,803.9 153,354.6 161,502.1 150,966.9 172,248.7 14 ATS-NOW accounts4 2,184.6 2,404.8 2,754.7 3.228.6 3,205.2 3,325.2 3,770.8 3,549.0 3.762.6 15 MMDA 1,609.4 1,954.2 2,430.1 2.636.7 2,700.2 2,910.5 3,136.0 2,686.7 3.068.7 16 Savings deposits 404.1 526.8 578.0 649.6 649.6 637.9 641.4 610.4 656.7 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 556.7 612.3 641.7 782.3 676.6 805.9 855.6 761.3 891.5 18 Major New York City banks 2,499.1 2,674.9 2,901.4 3,603.3 3,017.6 3,482.5 3,795.0 3,247.5 3,911.6 19 Other banks 321.2 356.9 377.1 473.6 418.7 500.9 520.9 477.4 559.9 20 ATS-NOW accounts4 15.6 13.8 14.7 16.9 16.3 18.0 20.3 18.9 20.0 21 MMDA6 . 4.5 5.3 6.9 7.8 8.1 9.0 9.7 8.2 9.2 22 Savings deposits 3.0 3.1 3.1 3.5 3.5 3.5 3.6 3.4 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

A10 Domestic Financial Statistics • January 1990 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 198 8 1989 CCaatteeggoorryy Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1 Total loans and securities2 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 2,544.1 2,575.5 2 U.S. government securities 358.8 361.4 360.4 361.8 368.8 370.7 373.5 373.8 374.4 376.6 378.8 391.7 3 Other securities 195.9 194.0 189.6 190.4 189.7 187.2 186.4 185.7 184.6 182.8 182.9 182.7 4 Total loans and leases2 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 1,982.4 2,001.1 5 Commercial and industrial ..... 601.8 601.9 606.6 619.0 617.8 620.6 626.3 624.9 632.1 637.3 636.9 641.1 6 Bankers acceptances held ... 4.3 4.1 4.4 4.2 4.0 4.1 4.2 44..22 44..11 44..55 44..88 55..44 7 Other commercial and industrial 597.4 597.8 602.2 614.8 613.7 616.6 622.1 620.7 628.1 632.8' 632.1 635.7 8 U.S. addressees4. 591.3 591.8 596.6 609.9 608.3 611.7 616.6 615.2 622.2 627.1 626.6' 629.4 9 Non-U.S. addressees 6.1 5.9 5.7 4.9 5.4 4.8 5.4 5.5 5.9 5.7 5.5 6.2 10 Real estate 665.3 672.0 678.9 685.6 691.8 699.5 705.5 712.0 719.9 729.0 734.4 741.1 11 Individual 353.0 355.5 357.9 358.9 360.6 362.9 365.4 366.0 367.0 369.3 372.1 374.4 12 Security 38.2 38.5 37.7 44.7 43.6 40.0 38.1 4411..33 4400..55 3399..99 4400..66 4422..33 13 Nonbank financial institutions 30.2 30.0 30.3 30.6 29.7 29.2 28.7' 30.3' 31.4' 31.8' 32.1 33.3 1144 Agricultural 30.3 30.7 30.7 30.7 30.7 30.4 30.3 30.3 3300..44 3300..33 3300..22 3300..11 li State and political subdivisions 47.7 46.8 44.4 44.5 44.6 44.6 44.7 44.5 44.2 43.9 43.5 42.9 16 Foreign banks 8.1 7.6 7.8 8.5 8.2 8.3 9.4 9.3 8.9 9.3 8.5 9.8 17 Foreign official institutions 4.9 4.9 4.8 4.8 4.8 4.9 4.9 4.7 4.5 4.3 4.3 4.0 18 Lease financing receivables 29.1 29.2 29.4 29.6 29.6 29.8 30.0 29.9 30.3 30.3 31.0 31.6 19 Ail other loans 47.0 44.8 44.4 42.7 45.2 42.9 43.3' 44.1' 49.9" 49.5' 48.6r 50.5 Not seasonally adjusted 20 Total loans and securities2 2,409.2 2,429.6 2,430.7 2,453.6 2,462.8 2,473.9 2,487.4 2,500.9 2,511.8 2,526.9 2,541.2 2,565.5 21 U.S. government securities 357.5 361.6 362.2 366.3 370.2 370.9 372.6 372.6 373.1 376.8 378.5 388.3 2 2 2 4 T O o th ta e l r l s o e a c n u s r i a t n ie d s leases2 1,8 1 5 9 5 6 . . 7 0 1,8 1 7 9 4 3 . . 2 7 1,8 1 7 9 6 1 . . 9 7 1,8 1 9 9 7 0 . . 2 1 1,9 1 0 8 3 8 . . 7 9 1,9 1 1 8 5 7 . . 9 2 1,9 1 2 8 8 6 . . 0 8 1,9 1 4 8 2 6 . . 3 0 1,9 1 5 8 4 4 . . 6 1 1,9 1 6 8 6 3 . . 9 1 1,9 1 8 8 0 2 . . 0 8 1,9 1 9 8 5 1 . . 6 6 24 Commercial and industrial ..... 599.3 605.0 605.8 618.3 621.1 625.2 630.0 629.0 631.0 632.7 632.2 636.0 25 Bankers acceptances held ... 4.3 4.1 4.1 4.1 4.0 4.0 4.3 4.4 44..22 44..66 44..99'' 55..55 26 Other commercial and industrial 595.0 600.9 601.7 614.2 617.1 621.3 625.8 624.6 626.8 628.0 627.3 630.5 2277 U.S. addressees'1 588.9 594.8 596.4 608.9 611.8 616.0 620.2 619.0 621.1 622.6 621.8 625.0 28 Non-U.S. addressees 6.1 6.1 5.3 5.3 5.3 5.3 5.5 5.6 5.6 5.5 5.5 5.5 29 Real estate 667.2 673.3 678.9 683.6 689.2 697.4 704.1 712.1 720.6 730.4 736.5 741.9 30 Individual 354.1 359.4 360.7 358.2 357.7 360.3 363.2 364.5 365.9 369.3 374.0 375.6 31 Security 37.6 38.9 38.2 43.8 44.1 42.0 38.9 42.9 4400..22 3388..66 3399..11 4400..55 32 Nonbank financial institutions 30.3 31.1 30.7 30.0 29.1 29.0 28.9' 30.5' 31.4r 31.7r 32.0' 32.9 3333 Agricultural 30.5 30.5 30.1 29.8 29.6 29.6 30.1 30.7 3311..11 3311..22 3311..11 3311..00 34 State and political subdivisions 47.1 46.6 45.8 45.5 45.1 44.9 44.6 44.1 43.6 43.4 42.9 42.5 3355 Foreign banks 8.2 7.9 8.1 8.5 8.0 8.0 9.0 9.1 9.0 9.1 8.7 9.8 36 Foreign official institutions 4.9 4.9 4.8 4.8 4.8 4.9 4.9 4.7 4.5 4.3 4.3 4.0 3/ Lease financing receivables .... 28.9 29.4 29.7 29.7 29.7 29.8 30.0 30.0 30.2 30.2 30.9 31.4 38 All other loans 47.5 47.3 44.0 45.0 45.4 44.7 44.4' 44.8' 47.2' 46.1' 48.1 50.0 1. 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 1988 1989 SSoouurrccee Nov. Dec. Jan. Feb. Mar. Apr. May' June' July' Aug. Sept.' Oct. Seasonally adjusted 1 Total nondeposit funds 217.8 215.2 208.2' 211.3' 212.1' 205.9' 209.9 227.1 222288..33 222299..88'' 223388..00 224488..44 2 Net balances due to related foreign offices .... 9.3 6.8 8.2' 10.7' 8.2' 3.0' -.1 7.9 11.1 9.3 9.7 9.9 3 Borrowings from other than commercial banks in United States4 208.5' 208.4 200.0 200.6 203.9 202.9 210.0 219.2 217.2 220.5 228.3 238.5 4 Domestically chartered banks 169.1 169.4 163.0 161.3 165.8 164.2 169.2 179.1 175.4 178.2 184.9 192.0 5 Foreign-related banks 39.3 39.0 37.0 39.3 38.1 38.7 40.7 40.1 41.8 42.3 43.4 46.4 Not seasonally adjusted Total nondeposit funds2 214.5 209.6 207.4' 216.1' 217.7' 208.6' 217.5 230.2 224.0 228.6' 223333..99 224411..55 7 Net balances due to related foreign offices — 10.4 9.2' 7.9' 10.5' 7.2' 2.5 8.1 8.1 8.9' 10.7 9.7 8 Domestically chartered banks -19.1 -20.6 -20.2 -17.6 -19.5 -22.8' -21.9 -18.3 -16.4 -15.5' -14.2 -14.8 9 Foreign-related banks 29.4' 29.9 28.1' 28.1' 26.7' 23.7' 24.5 26.4 24.6 24.4 24.9 24.4 10 Borrowings from other than commercial banks in United States4 204.2' 200.3 199.5 205.7' 210.6' 207.7 215.0 222.2 215.9 219.7 223.3 231.9 11 Domestically chartered banks 167.8 163.3 161.3 165.1 170.9 168.1 173.8 180.5 173.5 177.7 180.7 187.2 12 Federal funds and security RP borrowings5 163.2 159.8 157.9 161.9 167.5' 163.8 170.1 177.0 170.8 175.1 117788..11 118844..88 N Other 4.6 3.5 3.4 3.2 3.5 4.3 3.7 3.4 2.7 2.6 2.6 2.4 14 Foreign-related banks 36.4R 37.0 38.1' 40.6' 39.6 39.6' 41.2 41.7 42.4 42.0 42.6 44.7 MEMO Gross large time deposits IS Seasonally adjusted 424.5 429.2 434.9 440.3 446.7 452.7 456.8 458.8 461.6 460.4' 445588..00 445599..44 16 Not seasonally adjusted 425.6 429.8 434.5 440.2 448.2 450.6 455.5 457.3 458.8 461.2' 460.1 461.1 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 23.0 24.9 20.3 20.3 20.3 20.9 27.1 27.4 22.7 22.9 23.8 19.9 18 Not seasonally adjusted 16.3 22.9 25.0 25.9 18.1 20.2 34.3 26.2 23.0 15.8 24.9 20.7 1. Commercial banks are those in the 50 states and the District of Columbia 4. Other borrowings are borrowings through any instrument, such as a promwith national or state charters plus agencies and branches of foreign banks, New issory note or due bill, given for the purpose of borrowing money for the banking York investment companies majority owned by foreign banks, and Edge Act business. This includes borrowings from Federal Reserve Banks and from foreign corporations owned by domestically chartered and foreign banks. banks, term federal funds, loan RPs, and sales of participations in pooled loans. These data also appear in the Board's G.10 (411) release. For address, see 5. Based on daily average data reported weekly by approximately 120 large inside front cover. banks and quarterly or annual data reported by other banks. 2. Includes federal funds, RPs, and other borrowing from nonbanks and net 6. Figures are partly daily averages and partly averages of Wednesday data. balances due to related foreign offices. 7. Time deposits in denominations of $100,000 or more. Estimated averages of 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and daily data. U.S. branches and agencies of foreign banks with related foreign offices plus net 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at compositions with own IBFs. mercial banks. Averages of daily data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • January 1990 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1988 1989 AAccccoouunntt Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. ALL COMMERCIAL BANKING INSTITUTIONS* 1 Loans and securities 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 2,695.7 2,728.1 2 Investment securities 533.5 533.5 535.8 539.1 538.3 541.1 541.6 538.3 542.8 542.4 545.4 3 U.S. government securities 345.3 347.3 351.3 355.5 356.6 359.1 362.2 360.3 365.3 366.4 370.8 4 Other 188.2 186.2 184.5 183.6 181.7 182.0 179.4 178.1 177.5 176.1 174.6 5 Trading account assets 19.2 21.5 20.1 21.8 17.8 19.2 18.2 19.8 18.7 18.3 26.6 6 Total loans 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 2,135.0 2,156.1 7 Interbank loans 165.7 159.9 173.2 154.9 150.7 160.5 155.0 162.4 162.9 158.0 164.2 8 Loans excluding interbank 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 1,977.1 1,992.0 9 Commercial and industrial 608.8 604.6 617.6 622.9 627.3 631.1 628.3 635.3 631.9 630.3 634.9 10 Real estate 676.3 679.7 684.1 692.6 699.4 706.7 715.1 722.8 733.9 737.5 743.2 11 Individual 361.4 360.8 358.3 358.1 361.8 363.8 366.0 366.2 371.4 375.5 376.1 12 All other 236.6 227.0 234.8 237.7 227.7 237.4 236.6 232.3 231.0 233.7 237.8 13 Total cash assets 246.3 216.1 227.4 211.5 215.8 248.3 214.2 211.7 212.0 219.6 213.0 14 Reserves with Federal Reserve Banks. 34.5 31.5 27.7 30.9 33.4 27.8 27.9 30.6 28.7 31.7 28.0 15 Cash in vault 30.3 27.5 26.6 26.8 26.9 27.9 27.6 27.4 28.5 28.0 27.9 16 Cash items in process of collection ... 92.3 76.4 89.1 75.9 78.8 107.6 78.7 75.2 77.4 82.6 77.5 17 Demand balances at U.S. depository institutions 34.4 28.7 33.3 28.8 28.5 34.9 29.6 28.8 29.7 29.0 28.8 18 Other cash assets 54.8 52.0 50.7 49.0 48.3 50.2 50.5 49.7 47.7 48.3 50.7 19 Other assets 200.0 194.6 191.4 194.1 200.7 206.8 198.7 201.1 199.6 203.9 203.8 20 Total assets/total liabilities and capital.... 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 3,119.3 3,144.9 21 Deposits 2,145.7 2,097.1 2,125.2 2,123.7 2,134.2 2,182.6 2,138.2 2,152.0 2,166.6 2,175.3 2,194.2 22 Transaction deposits 642.7 586.6 602.6 583.2 594.5 628.5 580.5 579.4 583.4 588.5 588.0 23 Savings deposits 535.6 528.8 527.3 523.2 512.0 509.7 507.4 514.0 518.9 520.7 527.6 24 Time deposits 967.5 981.7 995.3 1,017.3 1,027.6 1,044.3 1,050.2 1,058.6 1,064.4 1,066.1 1,078.6 25 Borrowings 473.1 493.6 502.9 483.6 486.7 510.6 512.7 510.2 504.6 516.5 526.5 26 Other liabilities 233.7 209.1 216.5 223.9 217.4 218.6 218.4 223.1 226.3 221.4 222.4 27 Residual (assets less liabilities) 195.3 198.0 198.2 201.4 201.2 203.2 204.4 204.7 206.5 206.1 201.9 MEMO 28 U.S. government securities (including trading account) 359.4 364.4 366.2 372.1 369.5 372.3 374.4 373.5 377.5 378.5 390.4 29 Other securities (including trading account) 193.4 190.5 189.7 188.8 186.6 188.0 185.4 184.6 184.0 182.3 181.6 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2,391.9 2,385.1 2,405.9 2,407.8 2,407.8 2,446.0 2,439.9 2,452.1 2,467.6 2,473.6 2,506.5 31 Investment securities 507.2 507.0 509.0 513.1 513.8 516.1 517.3 514.2 519.4 519.0 521.6 32 U.S. government securities 333.2 334.5 338.1 342.7 344.1 345.9 349.5 347.8 353.5 354.5 358.7 33 Other 174.0 172.6 171.0 170.4 169.7 170.2 167.8 166.5 165.9 164.5 162.9 34 Trading account assets 19.2 21.5 20.1 21.8 17.8 19.2 18.2 19.8 18.7 18.3 26.6 35 Total loans 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 1,936.3 1,958.3 36 Interbank loans 133.1 131.4 138.9 122.3 120.2 131.5 119.3 126.4 127.0 125.1 134.9 37 Loans excluding interbank 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 1,811.2 1,823.5 38 Commercial and industrial 500.6 498.9 503.4 506.1 511.3 515.5 511.6 515.6 512.8 510.4 514.2 39 Real estate 654.3 657.7 661.7 669.8 676.0 683.2 691.6 698.2 708.7 712.2 717.1 40 Individual 361.1 360.5 358.0 357.7 361.4 363.5 365.6 365.8 371.1 375.2 375.8 41 All other 216.3 208.1 214.7 216.9 207.3 217.0 216.3 212.0 209.9 213.5 216.4 42 Total cash assets 223.1 193.5 206.4 191.4 195.3 227.0 192.3 190.1 191.7 197.6 191.5 43 Reserves with Federal Reserve Banks. 33.1 30.1 26.6 29.5 30.7 26.7 26.6 29.6 27.0 29.5 26.3 44 Cash in vault 30.3 27.4 26.6 26.8 26.8 27.9 27.6 27.4 28.5 28.0 27.9 45 Cash items in process of collection ... 91.4 75.6 88.1 75.1 77.9 106.6 77.7 74.4 76.5 81.3 76.3 46 Demand balances at U.S. depository institutions 32.4 26.8 31.2 26.6 26.8 32.9 27.5 27.0 28.0 27.3 26.9 47 Other cash assets 35.9 33.6 33.9 33.4 33.1 33.0 32.9 31.7 31.7 31.6 34.2 48 Other assets 135.6 128.1 129.6 130.6 134.6 133.6 131.6 128.4 127.5 131.5 126.3 49 Total assets/liabilities and capital 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 2,802.8 2,824.3 50 Deposits 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 2,094.5 2,112.4 51 Transaction deposits 632.9 577.4 593.5 574.1 584.8 618.7 571.2 570.2 574.7 578.8 578.4 52 Savings deposits 533.1 526.4 524.8 520.7 509.4 507.1 504.8 511.3 516.2 517.9 525.0 53 Time deposits 907.0 922.3 934.4 952.6 961.9 977.2 982.9 989.9 995.9 997.7 1,009.0 54 Borrowings 363.7 377.1 378.7 362.8 368.2 383.0 387.3 380.2 375.5 390.8 393.2 55 Other liabilities 122.0 109.0 115.8 121.7 115.6 120.9 116.9 117.8 121.3 114.9 120.4 56 Residual (assets less liabilities) 191.8 194.5 194.6 197.9 197.7 199.7 200.8 201.2 203.0 202.6 198.4 MEMO 57 Real estate loans, revolving 40.1 40.7 41.7 42.5 43.4 44.3 45.3 45.7 46.4 47.1 47.9 58 Real estate loans, other 614.2 617.0 620.0 627.3 632.6 638.9 646.2 652.5 662.3 665.0 669.2 1. Back data are available from the Banking and Monetary Statistics section, the last Wednesday of the month based on a weekly reporting sample of Board of Governors of the Federal Reserve System, Washington, D.C., 20551. foreign-related institutions and quarter-end condition reports. These data also appear in the Board's weekly H.8 (510) release. 2. Commercial banking institutions include insured domestically chartered Figures are partly estimated. They include all bank-premises subsidiaries and commercial banks, branches and agencies of foreign banks, Edge Act and other significant majority-owned domestic subsidiaries. Loan and securities data Agreement corporations, and New York State foreign investment corporations. for domestically chartered commercial banks are estimates for the last Wednes- 3. Insured domestically chartered commercial banks include all member banks day of the month based on a sample of weekly reporting banks and quarter-end and insured nonmember banks. condition report data. Data for other banking institutions are estimates made for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Commercial Banks A19 1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS1 Millions of dollars, Wednesday figures 1989 AAccccoouunntt Aug. 30 Sept. 6 Sept. 13' Sept. 20' Sept. 27' Oct. 4 Oct. 11 Oct. 18 Oct. 25 1 Cash and balances due from depository institutions 104,331 118,718 110,729 117,428 111,758 120,336 124,614 119,016 105,871 2 Total loans, leases, and securities, net l,221,208r 1,237,404' 1,222,533 1,235,219 1,223,190 1,232,964 1,231,316 1,242,015 1,241,756 3 U.S. Treasury and government agency 143,784 144,871 144,457 144,907 144,135 148,304 150,548 155,831 157,966 4 Trading account 12,200 13,474 13,260 12,784 12,103 14,086 14,966 17,855 19,574 5 Investment account 131,584 131,397 131,197 132,122 132,031 134,218 135,582 137,975 138,392 6 Mortgage-backed securities 63,919' 64,015' 64,850 64,813 65,831 65,950 66,171 67,887 68,834 All other maturing in 7 One year or less 20,453 20,299 19,944 20,081 18,723 20,354 20,540 20,238 19,751 8 Over one through five years 37,697' 37,293' 36,909 37,132 36,883 35,934 36,415 36,338 36,212 9 Over five years 9,514' 9,790' 9,494 10,097 10,594 11,979 12,455 13,512 13,595 10 Other securities 70,560 70,339 70,241 70,035 69,797 69,311 69,057 68,806 68,368 11 Trading account 856 792 836 856 914 891 745 778 913 12 Investment account 69,703 69,547 69,405 69,179 68,883 68,420 68,311 68,028 67,455 13 States and political subdivisions, by maturity 41,562 41,408 41,375 41,274 41,220 41,061 41,007 40,867 40,192 14 One year or less 4,874 4,873 4,876 4,861 4,818 4,925 4,918 4,906 4,892 15 Over one year 36,689 36,535 36,499 36,412 36,402 36,136 36,089 35,960 35,299 16 Other bonds, corporate stocks, and securities 28,140 28,139 28,030 27,905 27,662 27,359 27,304 27,161 27,263 17 Other trading account assets 5,676 6,065 6,022 5,487 5,296 5,422 6,661 5,889 6,082 18 Federal funds sold4 63,375 71,050 62,096 69,415 63,032 69,303 61,968 66,272 65,760 19 To commercial banks 45,418 51,473 41,175 48,554 43,952 48,990 40,306 43,350 44,373 20 To nonbank brokers and dealers in securities 12,447 12,517 14,234 13,795 12,668 13,750 14,839 16,273 14,886 21 To others 5,509 7,059 6,686 7,066 6,412 6,563 6,823 6,650 6,502 22 Other loans and leases, gross 974,503' 981,737' 975,544 981,208 977,492 982,852 985,930 988,236 986,678 23 Other loans, gross 949,137' 956,355' 950,131 955,568 951,858 957,081 959,900 962,097 960,602 24 Commercial and industrial 316,521' 318,168' 314,894 316,948 314,655 317,694 318,932 318,431 318,084 25 Bankers acceptances and commercial paper 2,203' 2,190' 2,111 2,089 2,134 2,217 2,116 2,242 2,251 26 All other 314,318' 315,978' 312,783 314,858 312,521 315,476 316,815 316,189 315,833 27 U.S. addressees 312,701' 314,348' 311,205 312,964 310,747 313,858 315,086 314,396 314,247 28 Non-U.S. addressees 1,616' 1,630 1,578 1,894 1,774 1,618 1,730 1,792 1,586 29 Real estate loans 340,668' 342,567' 340,847 341,942 342,801 343,311 343,750 345,510 345,521 30 Revolving, home equity 25,527 25,608 25,771 25,915 26,053 26,110 26,229 26,349 26,408 31 All other 315,141' 316,959' 315,076 316,027 316,748 317,201 317,520 319,160 319,113 32 To individuals for personal expenditures 171,425' 171,754' 172,587 173,113 173,315 173,381 172,992 173,156 173,568 33 To depository and financial institutions 47,540' 48,380' 47,683 47,033 46,999 48,937 50,898 50,825 50,095 34 Commercial banks in the United States 21,389' 21,540' 20,916 20,530 20,620 21,099 22,323 23,098 22,363 35 Banks in foreign countries 4,336 4,392 4,618 4,415 4,811 5,125 5,589 5,150 5,297 36 Nonbank depository and other financial institutions .. 21,815 22,447' 22,148 22,088 21,568 22,713 22,986 22,577 22,434 37 For purchasing and carrying securities 16,284 17,520 17,159 18,871 16,698 16,773 16,171 16,682 16,948 38 To finance agricultural production 5,873 5,850 5,834 5,775 5,720 5,710 5,670 5,670 5,585 39 To states and political subdivisions 26,506 26,374 26,209 26,166 26,222 26,070 25,916 25,825 26,061 40 To foreign governments and official institutions 1,592' 1,541' 1,595 1,665 1,657 1,575 1,558 1,518 1,441 41 All other 22,727' 24,199' 23,323 24,055 23,790 23,630 24,014 24,480 23,299 42 Lease financing receivables 25,366 25,383' 25,413 25,640 25,634 25,772 26,030 26,139 26,076 43 LESS: Unearned income 4,893 4,857' 4,888 4,899 4,902 4,876 4,874 4,902 4,905 44 Loan and lease reserve 31,795 31,802 30,939 30,933 31,660 37,353 37,975 38,116 38,194 45 Other loans and leases, net 937,814' 945,079' 939,717 945,376 940,930 940,624 943,081 945,217 943,578 46 All other assets 121,946' 127,430' 129,005 123,458 127,471 130,288 130,159 131,404 128,840 47 Total assets 1,447,486 1,483,552' 1,462,267 1,476,105 1,462,420 1,483,589 1,486,090 1,492,435 1,476,467 48 Demand deposits 214,943 236,234 221,536 223,412 222,460 232,522 238,528 233,296 216,476 49 Individuals, partnerships, and corporations 172,079 185,681 179,643 174,592 175,709 182,556 190,516 183,417 173,175 50 States and political subdivisions 5,182 5,905 5,198 6,142 6,415 5,634 5,419 5,917 5,977 51 U.S. government 3,083 4,595 2,202 6,097 3,113 5,347 1,795 4,326 2,262 52 Depository institutions in the United States 19,472 23,643 19,108 20,449 19,490 21,168 23,961 23,235 19,716 53 Banks in foreign countries 6,113 6,078 6,552 6,217 7,049 7,295 6,778 7,058 6,429 54 Foreign governments and official institutions 677 940 537 859 973 716 843 786 746 55 Certified and officers' checks 8,336 9,392 8,296 9,056 9,711 9,808 9,215 8,556 8,171 56 Transaction balances other than demand deposits 73,456 77,796 75,996 73,890 72,787 77,407 76,476 75,992 74,792 57 Nontransaction balances 686,806 689,928 689,604 687,077 687,094 691,322 692,206 699,509 700,130 58 Individuals, partnerships, and corporations 647,404' 650,952' 650,706 648,694 648,638 653,071 653,821 661,460 661,596 59 States and political subdivisions 30,631 30,065 30,189 29,714 29,859 29,689 29,859 29,737 29,988 60 U.S. government 659 888 858 880 872 865 938 928 932 61 Depository institutions in the United States 7,463' 7,370' 7,210 7,136 7,064 7,040 6,943 6,762 6,989 62 Foreign governments, official institutions, and banks .. 648 652 641 652 661 656 643 622 626 63 Liabilities for borrowed money 282,519 287,884 287,252 302,954 293,146 299,152 298,712 301,263 300,180 64 Borrowings from Federal Reserve Banks 0 55 0 370 0 3,040 70 30 0 65 Treasury tax-and-loan notes 15,812 4,027 8,167 24,889 25,038 11,838 11,530 10,228 14,321 66 All other liabilities for borrowed money6 266,707 283,802 279,086 277,695 268,108 284,274 287,112 291,006 285,859 67 Other liabilities and subordinated notes and debentures .. 87,621 88,405' 84,795 86,306 85,049 86,169 82,906 84,423 87,028 68 Totol liabilities 1,345,344 1,380,246' 1,359,184 1,373,639 1,360,536 1,386,572 1,388,828 1,394,483 1,378,606 69 Residual (total assets minus total liabilities)7 102,141 103,306 103,083 102,466 101,883 97,016 97,262 97,952 97,861 MEMO 70 Total loans and leases (gross) and investments adjusted . 1,191,085^ 1,201,049' 1,196,268 1,201,968 1,195,180 1,205,103 1,211,536 1,218,587 1,218,119 71 Total loans and leases (gross) adjusted 971,070' 979,774' 975,547 981,539 975,952 982,066 985,270 988,060 985,702 72 Time deposits in amounts of $100,000 or more 219,564 219,066 218,837 218,143 217,552 218,333 217,843 218,983 220,418 73 U.S. Treasury securities maturing in one year or less 16,697 16,305 16,991 17,118 16,434 16,607 17,539 17,371 17,768 74 Loans sold outright to affiliates—total 1,702 1,674 1,598 1,634 1,670 1,556 1,323 1,517 1,622 75 Commercial and industrial 1,374 1,346 1,270 1,312 1,329 1,204 982 1,176 1,271 76 Other 328 328 327 322 340 353 341 341 351 77 Nontransaction savings deposits (including MMDAs) 253,369 257,098 256,700 254,516 255,211 258,009 258,652 259,762 259,460 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

A10 Domestic Financial Statistics • January 1990 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1989 AAccccoouunntt Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 1 Cash balances due from depository institutions 20,658 24,680 21,990 28,005 26,341 30,552 26,926 27,270 24,144 2 Total loans, leases, and securities, net2 213,405 219,579 212,867 221,294 211,911 213,517 211,371 213,066 210,064 Securities 3 U.S. Treasury and government agency3 0 0 0 0 0 0 0 0 0 4 Trading account3 0 0 0 0 0 0 0 0 0 5 Investment account 15,670 15,552 15,584 15,294 14,753 14,900 15,117 15,527 15,793 6 Mortgage-backed securities4 8,208r 8,297r 8,324' 7,646' 77,,663399'' 77,,666622 77,,776666 88,,113322 88,,442200 All other maturing in 7 One year or less 2,865 2,670 2,673 3,025 2,498 2,628 2,722 2,685 2,712 8 Over one through five years 3,246 3,235 3,236 3,272 3,265 3,260 3,244 3,299 3,252 9 Over five years 1,351'" l,35(y 1,350'' 1,351' 1,35c 1,350 1,384 1,411 1,409 10 Other securities 0 0 0 0 0 0 0 0 0 11 Trading account3 0 0 0 0 0 0 0 0 0 12 Investment account 17,014 16,977 16,909 16,814 16,796 16,771 16,791 16,592 16,080 13 States and political subdivisions, by maturity 10,084 10,005 9,952 9,834 9,782 9,761 9,809 9,729 9,101 14 One year or less 1,130 1,145 1,156 1,125 1,075 1,090 1,092 1,081 1,067 15 Over one year 8,954 8,860 8,795 8,709 8,707 8,671 8,717 8,648 8,034 16 Other bonds, corporate stocks, and securities 6,930 6,971 6,957 6,980 7,014 7,010 6,982 6,863 6,978 17 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold5 18,644 21,178 15,972 21,380 15,675 20,567 16,055 17,797 15,519 19 To commercial banks 11,004 12,746 7,403 13,377 8,544 12,776 7,447 7,910 6,700 20 To nonbank brokers and dealers in securities 4,573 4,682 4,945 4,092 3,988 3,926 4,548 6,236 5,295 21 To others 3,067 3,750 3,624 3,912 3,142 3,865 4,059 3,651 3,524 22 Other loans and leases, gross 175,931 179,498 178,111 181,507 179,244 180,904 183,532 183,281 182,810 23 Other loans, gross 170,304 173,882 172,468 175,826 173,575 175,246 177,880 177,546 177,085 24 Commercial and industrial 58,351 59,801 58,619 59,278 58,343 58,977 60,%3 60,592 60,476 25 Bankers acceptances and commercial paper 555 530 525 461 544 562 499 529 600 26 Mother 57,7% 59,271 58,094 58,817 57,799 58,416 60,464 60,063 59,876 27 U.S. addressees 57,280 58,787 57,615 58,079 57,161 57,844 59,776 59,339 59,269 28 Non-U.S. addressees 516 484 480 738 638 572 688 724 607 29 Real estate loans 57,306 58,180 58,766 59,052 59,130 59,259 59,363 59,658 59,520 30 Revolving, home equity 3,655 3,667 3,682 3,699 3,717 3,729 3,765 3,776 3,788 31 All other 53,651 54,513 55,084 55,353 55,413 55,530 55,598 55,881 55,731 32 To individuals for personal expenditures 19,883 19,775 19,848 20,017 20,086 19,947 19,955 20,028 20,006 33 To depository and financial institutions 17,583 17,972 17,828 18,375 18,333 19,485 20,132 19,472 19,247 34 Commercial banks in the United States 7,520 7,906 7,463 8,156 7,958 8,541 8,628 8,489 7,983 35 Banks in foreign countries 2,814 2,785 3,126 2,788 3,248 3,524 4,002 3,673 3,862 36 Nonbank depository and other financial institutions 7,250 7,281 7,239 7,431 7,127 7,419 7,501 7,311 7,402 37 For purchasing and carrying securities 6,239 7,049 6,409 7,468 6,186 6,257 5,874 6,660 6,923 38 To finance agricultural production 144 144 134 136 134 159 153 145 134 39 To states and political subdivisions 5,919 5,938 5,928 5,926 5,938 5,942 5,7% 5,776 6,010 40 To foreign governments and official institutions 456 413 427 530 523 481 468 427 330 41 Mother 4,421 4,609 4,509 5,043 4,903 4,738 5,176 4,788 4,440 42 Lease financing receivables 5,627 5,616 5,643 5,681 5,669 5,658 5,651 5,735 5,726 43 LESS: Unearned income 1,749 1,735 1,759 1,768 1,770 1,749 1,753 1,762 1,758 44 Loan and lease reserye 12,106 11,891 11,949 11,934 12,786 17,876 18,370 18,368 18,381 45 Other loans and leases, net 162,076 165,872 164,403 167,805 164,688 161,279 163,408 163,150 162,672 46 M other assets 49,638 54,152r 52,153' 46,759' 49,354' 52,525 53,628 56,913 56,399 47 Total assets 283,701 298,411r 287,010' 296,058' 287,606' 296,595 291,924 297,249 290,607 Deposits 48 Demand deposits 47,605 51,504 48,315 51,800 53,430 53,632 55,395 54,149 49,626 49 Individuals, partnerships, and corporations 32,976 35,787 34,536 35,283 36,2% 36,592 39,689 37,565 34,971 50 States and political subdivisions 423 757 618 643 836 747 728 587 536 51 U.S. government 594 885 200 1,018 572 1,085 255 776 351 52 Depository institutions in the United States 5,281 4,812 4,379 5,465 4,764 4,594 4,844 5,928 5,209 53 Banks in foreign countries 4,944 4,723 5,264 4,852 5,735 6,000 5,520 5,588 5,082 54 Foreign governments and official institutions 472 794 379 620 801 571 682 609 601 55 Certified and officers' checks 2,915 3,746 2,940 3,919 44,,442277 44,,004444 33,,667755 33,,00%% 22,,887744 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,095 8,375 8,399 8,140 7,998 8,422 8,367 8,219 8,077 57 Nontransaction balances 113,216 113,437 113,350 112,839 112,107 113,952 112,870 113,540 113,590 58 Individuals, partnerships, and corporations 102,889 103,428 103,386 102,982 102,187 103,989 102,880 103,703 103,538 59 States and political subdivisions 7,775 7,478 7,400 7,318 7,389 7,422 7,472 7,494 7,647 60 U.S. government 33 29 28 29 29 29 29 29 29 61 Depository institutions in the United States 2,264 2,246 2,268 2,239 2,223 2,228 2,214 2,047 2,103 62 Foreign governments, official institutions, and banks 254 256 266 271 279 284 273 266 273 63 Liabilities for borrowed money 58,444 65,984 62,276' 64,063 59,378 67,632 65,559 70,695 66,232 64 Borrowings from Federal Reserve Banks 0 0 0 0 0 3,010 0 0 0 65 Treasury tax-and-loan notes 3,876 868 1,810 6,020 5,932 2,484 2,338 1,856 2,939 66 M other liabilities for borrowed money 54,568 65,116 60,467' 58,043 53,445 62,138 63,221 68,839 63,292 67 Other liabilities and subordinated notes and debentures 27,726 30,377' 25,492' 30,356' 27,000' 29,552 26,384 26,472 28,891 68 Total liabUities 255,085 269,678' 257,833' 267,199' 259,913' 273,190 268,574 273,076 266,415 69 Residual (total assets minus total liabilities)9 28,616 28,733 29,177 28,859 27,693 23,405 23,350 24,174 24,192 MEMO 70 Total loans and leases (gross) and investments adjusted2,10 208,736 212,553 211,709 213,463 209,966 211,825 215,419 216,798 215,520 71 Total loans and leases (gross) adjusted 176,051 180,024 179,217 181,355 178,417 180,154 183,511 184,678 183,646 72 Time deposits in amounts of $100,000 or more 42,365 42,754 42,508 42,423 41,649 42,655 41,931 42,246 42,378 73 U.S. Treasury securities maturing in one year or less 2,788 2,552 2,590 2,880 2,498 2,456 3,005 2,937 2,987 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 FRA6S. EInRclu des 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 Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 1 Cash and due from depository institutions ... 11,345 12,271 11,342 13,100 12,184 12,441 11,639 12,739 11,626 2 Total loans and securities 138,376 138,202 138,782 136,509 136,163 135,944 134,974 138,708 135,632 3 U.S. Treasury and government agency securities 7,911 8,194 7,896 7,967 8,000 7,829 7,482 8,162 8,146 4 Other securities. 5,899 5,882 5,859 5,908 5,985 5,931 5,941 5,930 6,090 5 Federal funds sold 7,769 7,377 8,155 6,269 5,923 6,479 5,908 7,348 4,459 6 To commercial banks in the United States. 6,630 6,149 6,696 5,112 4,820 5,062 4,484 5,730 2,966 7 To others 1,139 1,228 1,459 1,157 1,103 1,417 1,424 1,618 1,493 8 Other loans, gross 116,797 116,749 116,872 116,365 116,255 115,705 115,643 117,268 116,937 9 Commercial and industrial 73,193 74,065 73,838 73,302 73,563 73,851 73,164 74,324 73,804 10 Bankers acceptances and commercial paper 1,781 2,065 1,887 1,852 2,119 2,277 2,492 2,393 2,387 11 All other 71,412 72,000 71,951 71,450 71,444 71,574 70,672 71,931 71,417 12 U.S. addressees 69,590 70,160 70,088 69,616 69,659 69,791 68,897 70,027 69,563 13 Non-U.S. addressees 1,822 1,840 1,863 1,834 1,785 1,783 1,775 1,904 1,854 14 Loans secured by real estate 16,552 16,408 16,282 16,422 16,452 16,231 16,309 16,289 16,981 15 To financial institutions 22,889 21,666 22,431 22,134 22,295 21,271 21,912 22,229 22,198 16 Commercial banks in the United States.. 17,090 16,297 17,040 16,980 16,998 16,159 16,490 16,480 16,530 17 Banks in foreign countries 1,657 1,380 1,249 1,035 1,064 1,195 1,370 1,635 1,482 18 Nonbank financial institutions 4,142 3,989 4,142 4,119 4,233 3,917 4,052 4,114 4,186 19 To foreign governments and official institutions 629 636 628 647 630 633 530 485 483 20 For purchasing and carrying securities 1,775 2,292 1,996 2,216 1,626 1,810 1,909 2,111 1,629 21 All other3 1,759 1,682 1,697 1,644 1,689 1,909 1,819 1,830 1,842 22 Other assets (claims on nonrelated parties) .. 35,828 35,258 35,999 35,242 35,721 35,996 36,857 36,552 36,633 23 Net due from related institutions 13,046 15,760 13,855 14,783 13,700 16,102 16,954 14,062 17,133 24 Total assets 198,597 201,492 199,979 199,633 197,768 200,482 200,426 202,062 201,023 25 Deposits or credit balances due to other than directly related institutions 49,768 50,133 50,212 49,661 50,483 50,305 49,710 50,613 50,896 26 Transaction accounts and credit balances . 3,223 3,300 3,513 3,567 3,915 3,8% 3,393 33,,555577 3,860 27 Individuals, partnerships, and corporations 2,020 2,146 2,135 2,106 2,181 2,188 2,298 2,275 2,268 28 Other , 1,203 1,154 1,378 1,461 1,734 1,708 1,095 1,282 1,592 29 Nontransaction accounts 46,545 46,833 46,699 46,094 46,568 46,409 46,317 4477,,005566 47,036 30 Individuals, partnerships, and corporations 38,595 38,365 38,331 38,118 38,566 38,677 38,741 38,944 39,102 31 Other 7,950 8,468 8,368 7,976 8,002 7,732 7,576 8,112 7,934 32 Borrowings from other than directly related institutions 84,538 89,018 87,127 87,119 82,006 88,226 86,978 85,739 87,719 33 Federal funds purchased6 35,462 40,597 36,761 37,984 32,216 40,525 39,415 38,918 39,913 34 From commercial banks in the United States 18,200 22,417 18,089 18,465 17,300 20,471 20,401 19,459 19,698 35 From others 17,262 18,180 18,672 19,519 14,916 20,054 19,014 19,459 20,215 36 Other liabilities for borrowed money 49,076 48,421 50,366 49,135 49,790 47,701 47,563 46,821 47,806 37 To commercial banks in the United States 33,570 32,012 33,915 32,610 33,196 31,059 30,678 30,307 31,252 38 To others 15,506 16,409 16,451 16,525 16,594 16,642 16,885 16,514 16,554 39 Other liabilities to nonrelated parties 37,139 36,391 37,033 36,315 37,206 37,095 36,484 36,925 36,393 40 Net due to related institutions 27,153 25,948 25,606 26,536 28,073 24,856 27,255 28,783 26,015 41 Total liabilities 198,597 201,492 199,979 199,633 197,768 200,482 200,426 202,062 201,023 MEMO 42 Total loans (gross) and securities adjusted .. 114,656 115,756 115,046 114,417 114,345 114,723 114,000 116,498 116,136 43 Total loans (gross) adjusted" 100,846 101,680 101,291 100,542 100,360 100,963 100,577 102,406 101,900 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

A10 Domestic Nonfinancial Statistics • January 1990 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.. June Sept. Dec. Mar. June Sept. 1 All holders—Individuals, partnerships, and k corporations 302.7 321.0 363.6 343.5 346.5 337.8 354.7 330.4 329.3 1 2 Financial business 31.7 32.3 41.4 36.3 37.2 34.8 38.6 36.3 33.0 1 3 Nonfinancial business 166.3 178.5 202.0 191.9 194.3 190.3 201.2 182.2 185.9 n.a. 4 Consumer 81.5 85.5 91.1 90.0 89.8 87.8 88.3 87.4 86.6 1 5 Foreign 3.6 3.5 3.3 3.4 3.4 3.2 3.7 3.7 2.9 1 6 Other 19.7 21.2 25.8 21.9 21.9 21.7 22.8 20.7 21.0 ? Weekly reporting banks 1988 1989 11998844 11998855 11998866 11998877 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar. June Sept. 7 All holders—Individuals, partnerships, and corporations 157.1 168.6 195.1 183.8 191.5 185.3 198.3 181.9 182.2 186.6 8 Financial business 25.3 25.9 32.5 28.6 30.0 27.2 30.5 27.2 25.4 26.3 9 Nonfinancial business 87.1 94.5 106.4 100.0 103.1 101.5 108.7 98.6 99.8 101.6 10 Consumer 30.5 33.2 37.5 39.1 42.3 41.8 42.6 41.1 42.4 43.0 11 Foreign 3.4 3.1 3.3 3.3 3.4 3.1 3.6 3.3 2.9 2.8 12 Other 10.9 12.0 15.4 12.7 12.8 11.7 12.9 11.7 11.7 12.9 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 IInnssttrruummeenntt DD 1199 ee 88 cc 44 .. DD 1199 ee 88 cc 55 .. DD 1199 ee 88 cc 66 .. DD 1199 ee 88 cc 77 .. DD 1199 ee 88 cc 88 .. Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 237,586 298,779 329,991 357,129 455,017 494,292 497,369 503,445 506,095 516,476 506,779 FFiinnaanncciiaall ccoommppaanniieess11 DDeeaalleerr--ppllaacceedd ppaappeerr 22 TToottaall 56,485 78,443 101,072 101,958 159,947 170,549 167,795 167,681 179,354 180,822 178,358 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 2,035 1,602 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. DDiirreeccttllyy ppllaacceedd ppaappeerr 44 TToottaall 110,543 135,320 151,820 173,939 192,442 207,231 206,497 211,020 205,847 208,915 206,521 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 42,105 44,778 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. 66 NNoonnffiinnaanncciiaall ccoommppaanniieess 70,558 85,016 77,099 81,232 102,628 116,512 123,077 124,744 121,217 125,478 123,300 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 78,364 68,413 64,974 70,565 66,631 64,357 62,396 64,115 65,588 65,764 64,042 Holder 8 Accepting banks 9,811 11,197 13,423 10,943 9,086 9,616 8,908 9,417 9,355 9,844 9,656 9 Own bills 8,621 9,471 11,707 9,464 8,022 8,107 8,115 8,371 8,279 8,783 8,922 10 Bills bought 1,191 1,726 1,716 1,479 1,064 1,509 794 1,046 1,076 1,061 735 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 1,400 1,374 1,177 1,026 1,014 1,016 13 Others 67,881 56,279 50,234 58,658 56,052 53,340 52,113 53,521 55,207 54,906 53,370 Basis 14 Imports into United States 17,845 15,147 14,670 16,483 14,984 15,234 14,900 15,093 15,338 16,140 16,265 15 Exports from United States 16,305 13,204 12,960 15,227 14,410 14,371 14,452 15,063 15,270 14,895 14,322 16 All other 44,214 40,062 37,344 38,855 37,237 34,752 33,044 33,959 34,980 34,729 33,455 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 Average Average rate rate 1986— Mar. 7 9.00 1986 8.33 1987— Jan. ... 7.50 1988— Mar. .. Apr. 21 8.50 1987 8.21 Feb. .. 7.50 Apr. . July 11 8.00 1988 9.32 Mar. .. 7.50 May .. Aug. 26 7.50 Apr. .. 7.75 June . 1986— Jan. 9.50 8.14 July .. 1987— Apr. 1 7.75 Feb. 9.50 June .. 8.25 Aug. . May 1 8.00 Mar. 9.10 July ... 8.25 Sept. . 15 8.25 Apr. 8.83 Aug. .. 8.25 Oct. .. Sept. 4 8.75 May 8.50 Sept. .. 8.70 Nov. . Oct. 7 9.25 June 8.50 Oct. ... 9.07 Dec. .. 22 9.00 July 8.16 8.78 Nov. 5 8.75 Aug. 7.90 Dec. .. 8.75 1989— Jan. ... Sept. 7.50 Feb. .. 1988— Feb. 2 8.50 Oct. 7.50 1988— 8.75 Mar. .. May 11 9.00 Nov. 7.50 Feb. .. 8.51 Apr. July 14 9.50 Dec. 7.50 May , Aug. 11 10.00 June , Nov. 28 10.50 July Aug. .. 1989— Feb. 10 11.00 Sept. 24 11.50 Oct. June 5 11.00 Nov. 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 • January 1990 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 IInnssttrruummeenntt 11998866 11998877 11998888 July Aug. Sept. Oct. Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 MONEY MARKET RATES 1 Federal funds1'2 6.80 6.66 7.57 9.24 8.99 9.02 8.84 9.02 9.18 8.93 8.76 8.72 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 7.00 Commercial paper • 3 1-month 6.61 6.74 7.58 8.95 8.79 8.87 8.66 8.92 8.90 8.69 8.51 8.55 4 3-month 6.49 6.82 7.66 8.68 8.57 8.70 8.53 8.77 8.82 8.57 8.36 8.42 5 6-month 6.39 6.85 7.68 8.35 8.32 8.50 8.24 8.58 8.58 8.27 8.10 8.07 Finance paper, directly placed4' 6 1-month 6.57 6.61 7.44 8.80 8.67 8.76 8.54 8.79 8.79 8.56 8.38 8.45 7 3-month 6.38 6.54 7.38 8.32 8.20 8.35 8.29 8.33 8.61 8.30 8.16 8.14 8 6-month 6.31 6.37 7.14 7.80 7.49 7.56 7.50 7.56 7.63 7.50 7.44 7.47 Bankers acceptances '6 9 3-month 6.38 6.75 7.56 8.54 8.47 8.59 8.42 8.70 8.70 8.40 8.30 8.32 10 6-month 6.28 6.78 7.60 8.19 8.22 8.37 8.08 8.48 8.41 88..0044 77..9999 77..9922 Certificates of deposit, secondary market 11 1-month 6.61 6.75 7.59 8.96 8.77 8.83 8.62 8.90 8.87 8.63 8.47 8.54 12 3-month 6.51 6.87 7.73 8.76 8.64 8.78 8.60 8.88 8.91 8.63 8.42 8.49 13 6-month 6.50 7.01 7.91 8.59 8.56 8.75 8.45 8.85 8.81 8.46 8.30 8.29 14 Eurodollar deposits^ 3-month8 6.70 7.07 7.85 8.85 8.71 8.85 8.67 8.86 9.03 88..8800 8.51 88..5588 U.S. Treasury bills5 Secondary market9 13 3-month 5.97 5.78 6.67 7.88 7.90 7.75 7.64 7.84 7.76 7.66 7.50 7.60 16 6-month 6.02 6.03 6.91 7.61 7.74 7.74 7.62 7.85 7.83 7.63 7.53 7.50 17 •-year 6.07 6.33 7.13 7.36 7.61 7.65 7.45 7.78 7.76 7.46 7.33 7.28 Auction average 18 3-month 5.98 5.82 6.68 7.92 7.91 7.72 7.59 7.72 7.83 7.63 7.37 7.52 19 6-month 6.03 6.05 6.92 7.63 7.72 7.74 7.61 7.79 7.92 7.60 7.42 7.50 20 1-year 6.07 6.33 7.17 7.58 7.45 7.61 7.35 7.61 n.a. n.a. n.a. 7.35 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities 21 1-year 6.45 6.77 7.65 7.89 8.18 8.22 7.99 8.38 8.35 8.00 7.85 7.81 22 2-year 6.86 7.42 8.10 7.82 8.14 8.28 7.98 8.41 8.33 7.96 7.86 7.81 23 3-year 7.06 7.68 8.26 7.83 8.13 8.26 8.02 8.42 8.32 8.00 7.94 7.86 24 5-year 7.30 7.94 8.47 7.83 8.09 8.17 7.97 8.32 8.21 7.95 7.92 7.83 23 7-year 7.54 8.23 8.71 7.94 8.11 8.23 8.03 8.37 8.25 8.02 7.98 7.90 26 10-year 7.67 8.39 8.85 8.02 8.11 8.19 8.01 8.31 8.18 8.00 7.99 7.89 27 20-year 7.84 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 30-year 7.78 8.59 8.96 8.08 8.12 8.15 8.00 8.26 8.13 7.99 7.99 7.91 Composite 29 Over 10 years (long-term) 8.14 8.64 8.98 8.19 8.26 8.31 8.15 8.43 8.29 8.15 8.13 88..0055 State and local notes and bonds Moody's series14 30 Aaa 6.95 7.14 7.36 6.69 6.67 6.97 6.93 7.20 7.05 6.87 6.89 6.90 31 Baa 7.76 8.17 7.83 7.17 7.03 7.26 7.33 7.45 7.34 7.29 7.32 7.35 32 Bond Buyer series15 7.32 7.63 7.68 6.96 7.06 7.26 7.22 7.40 7.27 7.19 7.19 7.22 Corporate bonds Seasoned issues 33 All industries 9.71 9.91 10.18 9.34 9.36 9.41 9.34 9.45 9.44 9.35 9.30 9.29 34 Aaa 9.02 9.38 9.71 8.93 8.96 9.01 8.92 9.03 9.02 8.94 8.88 8.85 33 Aa 9.47 9.68 9.94 9.14 9.14 9.23 9.19 9.28 9.27 9.19 9.16 9.14 36 A 9.95 9.99 10.24 9.42 9.45 9.51 9.44 9.56 9.52 9.43 9.39 9.41 37 Baa 10.39 10.58 10.83 9.87 9.88 9.91 9.81 9.94 9.92 9.82 99..7777 99..7755 38 A-rated, recently offered utility bonds17 9.61 9.96r 10.20 9.54 9.55 9.55 9.39 9.60 9.40 9.33 9.37 9.39 MEMO: Dividend/price ratio18 39 Preferred stocks 8.76 8.37 9.23 8.81 8.75 8.82 8.85 8.82 8.84 8.91 8.86 8.79 40 Common stocks 3.48 3.08 3.64 3.38 3.28 3.29 3.29 3.30 3.21 3.21 3.36 3.36 1. Weekly, monthly and annual figures are averages of all calendar days, places. Thus, average issuing rates in bill auctions will be reported using two where the rate for a weekend or holiday is taken to be the rate prevailing on the rather than three decimal places. preceding business day. The daily rate is the average of the rates on a given day 11. Yields are based on closing bid prices quoted by at least five dealers. weighted by the volume of transactions at these rates. 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 2. Weekly figures are averages for statement week ending Wednesday. are read from a yield curve at fixed maturities. Based on only recently issued, 3. Rate for the Federal Reserve Bank of New York. actively traded securities. 4. Unweighted average of offering rates quoted by at least five dealers (in the 13. Averages (to maturity or call) for all outstanding bonds neither due nor case of commercial paper), or finance companies (in the case of finance paper). callable in less than 10 years, including one very low yielding "flower" bond. Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. General obligations based on Thursday figures; Moody's Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 15. General obligations only, with 20 years to maturity, issued by 20 state and 150-179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 5. Yields are quoted on a bank-discount basis, rather than in an investment 16. Daily figures from Moody's Investors Service. Based on yields to maturity yield basis (which would give a higher figure). on selected long-term bonds. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Compilation of the Federal Reserve. This series is an estimate of the yield (which may be, but need not be, the average of the rates quoted by the dealers). on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 7. Unweighted average of offered rates quoted by at least five dealers early in call protection. Weekly data are based on Friday quotations. the day. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 8. Calendar week average. For indication purposes only. sample of ten issues: four public utilities, four industrials, one financial, and one 9. Unweighted average of closing bid rates quoted by at least five dealers. transportation. Common stock ratios on the 500 stocks in the price index. 10. Rates are recorded in the week in which bills are issued. Beginning with the NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the For address, see inside front cover. percentage yield (on a bank discount basis) that they would accept to two decimal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A25 1.36 STOCK MARKET Selected Statistics 1989 IInnddiiccaattoorr 11998866 11998877 11998888 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 136.03 161.78 149.97 165.08 164.56 169.38 175.30 180.76 185.15 192.93 193.02 192.49 2 Industrial 155.85 195.31 180.83 200.00 197.58 204.81 211.81 216.75 221.74 231.32 230.86 229.40 3 Transportation 119.87 140.52 134.09 162.66 153.85 164.32 169.05 173.47 179.32 197.53 202.02 190.36 4 Utility 71.36 74.29 72.22 77.84 87.16 79.69 84.21 87.95 90.40 92.90 93.44 94.67 5 Finance 147.19 146.48 127.41 137.19 146.14 143.26 146.82 154.08 157.78 164.86 165.51 166.55 6 Standard & Poor's Corporation (1941-43 = 10)r 236.39 287.00 265.88 294.01 292.71 302.25 313.93 323.73 331.92 346.61 347.33 347.40 7 American Stock Exchange (Aug. 31, 1973 = 50? 264.91 316.78 295.08 323.97 327.47 336.82 349.50 362.73 368.52 379.28 382.75 383.63 Volume of trading (thousands of shares) 8 New York Stock Exchange 141,020 188,922 161,386 169,223 159,024 161,863 171,495 180,680 162,501 171,683 151,752 182,394 9 American Stock Exchange 11,846 13,832 9,955 11,780 11,395 11,529 11,699 13,519 11,702 14,538 12,631 n.a. Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 36,840 31,990 32,740 31,480 32,130 32,610 33,140 34,730 34,360 33,940 35,020 35,110 Free credit balances at brokers4 11 Margin-account 4,880 4,750 5,660 5,605 5,345 5,450 5,250 6,900 5,420 5,580 5,680 6,000 12 Cash-account 19,000 15,640 16,595 16,195 16,045 16,125 15,965 19,080 16,345 16,015 15,310 16,340 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 • January 1990 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1988 1989 AAccccoouunntt 11998866 11998877 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. SAIF-insured institutions 1 Assets 1,163,851 1,250,855 1,332,905 1,350,500 1,337,382 1,339,115 1,340,502' l,345,403r 1,346,623' 1,338,619' 1,331,995' 1,318,249 2 Mortgages 697,451 721,593 763,001 764,513 767,260 767,603 769,398' 773,436' 774,406' 772,777' 771,726' 770,286 3 Mortgage-backed securities 158,193 201,828 212,512 214,587 211,308 213,090 215,203 216,176 216,301 211,263' 204,268' 195,255 4 Contra-assets to mortgage assets1 . 41,799 42,344 37,739 37,950 37,157 37,013 37,842' 37,792' 37,497' 37,582' 37,214' 36,831 5 Commercial loans 23,683 23,163 25,513 33,889 32,974 32,955 32,866 32,809' 33,006' 33,096' 33,184' 32,944 6 Consumer loans 51,622 57,902 61,504 61,922 61,998 61,981 61,402 61,739 61,879 60,744' 61,077' 61,003 7 Contra-assets to nonmortgage loans . 3,041 3,467 2,959 3,056 2,840 2,923' 3,074 2,894' 2,912 3,145' 3,164' 3,130 8 Cash and investment securities 164,844 169,717 179,830 186,986 178,813 177,178 177,094 175,895' 174,293' 175,203' 175,187' 171,621 9 Other3 112,898 122,462 131,243 129,610 125,026 126,243 125,455' 126,034' 127,147' 126,262' 126,930' 127,101 10 Liabilities and net worth . 1,163,851 1,250,855 1,332,905 1,350,500 1,337,382 1,339,115 l,340,502r 1,345,403' 1,346,623' 1,338,619' 1,331,995' 1,318,249 11 Savings capital 890,664 932,616 971,497 971,700 963,820 957,358 956,663 954,495 955,566 960,070 963,140' 960,341 12 Borrowed money 196,929 249,917 281,088 299,400 299,415 305,675 312,988 318,669' 318,369' 312,062' 301,546' 289,631 13 FHLBB 100,025 116,363 127,548 134,168 135,712 140,089 146,007 148,000' 146,520' 144,217' 141,875' 138,331 14 Other 96,904 133,554 153,540 165,232 163,703 165,586 166,981 170,669 171,849 167,845' 159,671' 151,300 15 Other 23,975 21,941 29,178 24,216 29,751 31,749 29,593' 31,644' 33,599' 29,864' 31,888' 33,920 16 Net worth 52,282 46,382 51,143 55,185 58,882 58,962 57,113' 56,122' 54,633' 52,799' 50,963' 50,004 SAIF-insured federal savings banks 17 Assets 210,562 284,270 374,930 425,983 423,846 432,675 443,185 455,152 469,950 495,806 507,026 18 Mortgages 113,638 161,926 210,732 227,869 234,591 238,415 244,092 249,936 257,184 276,666 285,261 19 Mortgage-backed securities 29,766 45,826 57,815 64,957 62,773 65,896 68,047 69,967 73,967 73,946 74,343 20 Contra-assets to mortgage assets1 . n.a. 9,100 10,901 13,140 12,258 12,685 12,936 13,053 13,231 13,654 13,932 21 Commercial loans n.a. 6,504 9,041 16,731 16,172 16,320 16,317 16,498 16,935 18,014 18,264 22 Consumer loans 13,180 17,696 22,679 24,222 25,033 25,977 26,097 26,767 27,956 28,128 28,968 23 Contra-assets to nonmortgage loans . n.a. 678 803 889 814 857 972 863 1,072 975 980 24 Finance leases plus interest n.a. 591 831 880 907 946 1,011 1,047 1,072 1,083 1,088 n.a. 25 Cash and investment ... n.a. 35,347 48,028 61,029 57,434 57,986 60,319 61,279 62,002 65,681 65,949 26 Other 19,034 24,069 29,942 35,428 33,954 34,664 35,006 37,367 38,034 39,808 40,281 27 Liabilities and net worth . 210,562 284,270 374,930 425,983 423,846 432,675 443,185 455,152 469,950 495,806 507,026 28 Savings capital 157,872 203,196 263,984 298,197 298,515 301,770 307,581 315,726 324,369 342,146 352,530 29 Borrowed money 37,329 60,716 83,628 99,286 98,304 102,902 107,180 109,998 114,848 121,890 121,151 30 FHLBB 19,897 29,617 39,630 46,265 46,470 48,951 51,532 53,513 55,457 58,500 59,737 31 Other 17,432 31,099 43,998 53,021 51,834 53,951 55,648 56,485 59,391 63,390 61,414 32 Other 4,263 5,324 8,319 8,075 8,270 8,884 8,651 9,310 10,179 9,836 10,687 33 Net worth 11,098 15,034 18,882 20,235 21,625 22,700 23,103 23,411 23,924 25,726 26,306 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets All 1.37—Continued 1988 1989 AAccccoouunntt 11998866 11998877 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Credit unions5 34 Total assets/liabilities and capital 147,726 174,406 174,593 175,027 176,270 178,175 177,417 178,812 180,664 179,029 180,035 35 Federal 95,483 113,717 114,566 114,909 115,543 117,555 115,416 116,705 117,632 117,475 117,463 36 State 52,243 61,135 60,027 60,118 60,727 60,620 62,001 62,107 63,032 61,554 62,572 37 Loans outstanding 86,137 n.a. 112,452 113,191 114,012 113,880 114,572 115,249 116,947 119,101 119,720 120,577 38 Federal 55,304 73,100 73,766 74,083 73,917 74,395 75,003 76,052 77,729 78,472 78,946 39 State 30,833 39,352 39,425 39,927 39,963 40,177 40,246 40,895 41,372 41,248 41,631 40 Savings 134,327 159,021 159,010 159,106 161,073 164,322 161,388 162,134 164,415 162,405 162,754 41 Federal 87,954 103,223 104,431 104,629 105,262 107,368 105,208 105,787 106,984 106,266 106,038 42 State 46,373 55,798 54,579 54,477 55,811 56,954 56,180 56,347 57,431 56,139 56,716 Life insurance companies 43 Assets 937,551 1,044,459 1,144,854 1,157,140 1,176,042' 1,186,208' 1,199,125' 1,209,242' 1,221,332 1,232,195 Securities 44 Government 84,640 84,426 89,510 88,167 84,042' 84,19C 84,485' 82,873' 83,847 84,564 45 United States6 59,033 57,078 61,108 60,685 58,473' 58,509^ 58,417' 57,127' 57,790 57,817 46 State and local 11,659 10,681 11,189 11,126 8,918' 8,817' 8,86c 8,911' 8,953 9,036 47 Foreign7 13,948 16,667 17,213 16,356 16,651' 16,864' 17,208' 16,835' 17,104 17,711 48 Business n.a/ n.a/ n.a/ n.a/ 667,026' 678,541' 687,777' 697,703' 706,960 714,398 n.a. n.a. 49 Bonds 401,943 472,684 532,197 538,053 560,385' 571,365' 579,232' 587,889' 595,500 601,786 50 Stocks n.a/ n.a/ n.a/ n.a/ 106,641' 107,176' 108,545' 109,814' 111,460 112,612 51 Mortgages 193,842 203,545 229,234 232,639 232,941' 233,556' 234,632' 235,312' 236,651 237,444 52 Real estate 31,615 34,172 36,673 37,972 37,453' 37,603' 37,842' 37,976' 38,598 38,190 53 Policy loans 54,055 53,626 53,148 53,020 54,517' 54,738' 54,921' 55,201' 55,525 55,746 54 Other assets 80,592 89,586 94,116 95,518 98,063' 97,58c 99,468' 100,173' 99,751 101,853 1. Contra-assets are credit-balance accounts that must be subtracted from the NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all institutions corresponding gross asset categories to yield net asset levels. Contra-assets to insured by the FSLIC and based on the FHLBB thrift Financial Report. mortgage loans, contracts, and pass-through securities include loans in process, FSLIC-insured federal savings banks: Estimates by the FHLBB for federal unearned discounts and deferred loan fees, valuation allowances for mortgages savings banks insured by the FSLIC and based on the FHLBB thrift Financial "held for sale," and specific reserves and other valuation allowances. Report. 2. Contra-assets are credit-balance accounts that must be subtracted from the Savings banks: Estimates by the National Council of Savings Institutions for all corresponding gross asset categories to yield net asset levels. Contra-assets to savings banks in the United States and for FDIC-insured savings banks that have nonmortgage loans include loans in process, unearned discounts and deferred loan converted to federal savings banks. fees, and specific reserves and valuation allowances. Credit unions: Estimates by the National Credit Union Administration for 3. Holding of stock in Federal Home Loan Bank and Finance leases plus federally chartered and federally insured state-chartered credit unions serving interest are included in "Other" (line 9). natural persons. 4. Excludes checking, club, and school accounts. Life insurance companies: Estimates of the American Council of Life Insurance 5. Data include all federally insured credit unions, both federal and state for all life insurance companies in the United States. Annual figures are annualchartered, serving natural persons. statement asset values, with bonds carried on an amortized basis and stocks at 6. Direct and guaranteed obligations. Excludes federal agency issues not year-end market value. Adjustments for interest due and accrued and for guaranteed, which are shown in the table under "Business" securities. differences between market and book values are not made on each item separately 7. Issues of foreign governments and their subdivisions and bonds of the but are included, in total, in "other assets." International Bank for Reconstruction and Development. As of June 1989 Savings bank data are no longer available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • January 1990 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1989 111999888777 111999888888''' 111999888999 May June July Aug. Sept. Oct. U.S. budget1 1 Receipts, total 854,143 908,166 990,789 71,025' 108,249' 66,191' 76,161' 99,233 68,426 2 On-budget 640,741 666,675 727,123 49,403' 84,043' 45,673' 57,156' 75,711 50,122 3 Off-budget 213,402 241,491 263,666 21,622 24,206 20,518 19,004 23,522 18,304 4 Outlays, total l,003,804r 1,063,318 1,142,777' 96,491' 100,46c 84,43C 98,31C 105,299' 94,515 5 On-budget 809,972r 860,626 931,556' 77,761' 83,927' 66,624' 79,218' 86,548' 75,0% 6 Off-budget 193,832 202,691 211,221 18,730 16,534 17,806 19,092 18,750 19,419 7 Surplus, or deficit (-), total -149,661r -155,151 -151,988' -25,466 7,789 -18,239 -22,150 -6,066' -26,089 8 On-budget -169,231' -193,951 -204,433' -28,358 116 -20,951 -22,062 -10,837' -24,974 9 Off-budget 19,570 38,800 52,445 2,891 7,673 2,712 -88 4,771 -1,115 Source of financing (total) 10 Borrowing from the public 151,717' 166,139 140,156' 10,214 1,098 —3,%2 35,854 6,618' 36,690 11 Operating cash (decrease, or increase (-)L -5,052 -7,963 3,425 21,3% -11,649 21,564 -3,235 -15,589 -2,513 12 Other i 2,996' -3,025 8,407' -6,144 2,762 636 -10,469 14,977' -8,088 MEMO 13 Treasury operating balance (level, end of period) 36,436 44,398 40,973 32,065 43,713 22,149 25,384 40,973 43,486 14 Federal Reserve Banks 9,120 13,024 13,452 5,289 12,154 5,312 6,652 13,452 13,124 15 Tax and loan accounts 27,316 31,375 27,521 26,776 31,560 16,837 18,732 27,521 30,362 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetaiy fund; other cash and monetary assets; accrued interest of 1985, all former off-budget entries are now presented on-budget. The Federal payable to the public; allocations of special drawing rights; deposit funds; Financing Bank (FFB) activities are now shown as separate accounts under the miscellaneous liability (including checks outstanding) and asset accounts; agencies that use the FFB to finance their programs. The act has also moved two seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustsocial security trust funds (Federal old-age survivors insurance and Federal ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold. disability insurance trust funds) off-budget. SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to Government and the Budget of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year Fiscal Fiscal Source or type year year 1987 1988 1989 1989 1988 1989 H2 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources 908,166' 990,789 421,525' 475,724' 449,394' 527,574' 76,161' 99,233 68,426 2 Individual income taxes, net 401,181 445,690 192,575 207,659 200,30c 233,572' 36,932 45,026 35,493 3 Withheld 341,435 361,386 170,203 169,300 179,600 174,230 3344,,220000 2288,,112200 32,751 4 Presidential Election Campaign Fund 33 32 4 28 4 28 11 11 0 5 Nonwithheld 132,199 154,839 31,223 101,614 29,880 121,563 4,076 18,943 3,684 6 Refunds 72,487 70,567 8,853 63,283 9,186' 62,251' 11,,334455 22,,003388 943 Corporation income taxes 7 Gross receipts 109,683 117,015 52,821 58,002 56,409 61,585 2,872 20,085 3,279 8 Refunds 15,487 13,723 7,119 8,706 77,,225500'' 7,259' 909 655 2,549 9 Social insurance taxes and contributions, net 334,335 359,416 143,755 181,058 115577,,660033 200,127 2288,,447700 2299,,225599 24,308 10 Employment taxes and contributions 305,093 332,859 130,388 164,412 114444,,998833 184,569 2244,,112277 2299,,663322 23,100 11 Self-employment taxes and contributions 17,691 18,405 1,889 14,839 3,032 16,371 -733 2,540 0 12 Unemployment insurance 24,584 22,011 10,977 14,363 10,359 13,279 3,983 -7% 859 13 Other net receipts 4,659 4,547 2,390 2,284 2,262 2,277 360 424 350 14 Excise taxes 35,540 34,386 17,680 16,440 19,299' 16,814' 2,%5 2,428 2,970 15 Customs deposits 16,198 15,411' 7,806' 7,522' 8,107' 7,918' 1,677' 1,352 1,493 16 Estate and gift taxes 7,594 8,745 3,610 3,863 4,054 4,583 753 631 835 17 Miscellaneous receipts 19,909 22,927' 10,399 9,950 10,873 10,235 3,399 1,107 2,598 OUTLAYS 18 All types 1,063,318' 1,142,777' 532,839 513,210 552,998' 565,524' 98,310' 105,299' 94,515 19 National defense 290,361 303,551 146,995 143,080 150,4% 148,098 26,018 28,641 19,930 20 International affairs 10,471 9,5% 4,487 7,150 2,636 6,605 848 868 2,117 21 General science, space, and technology 10,841 12,891 5,469 5,361 5,852 6,238 1,202 1,190 1,342 22 Energy 2,297 3,745 1,468 555 1,966 2,221 287 -182 363 23 Natural resources and environment 14,625' 16,084 7,590 6,776 9,144' 7,022 1,264 1,423 1,975 24 Agriculture 17,210 16,948 14,640 7,872 6,911' 9,619 -274 -61 904 25 Commerce and housing credit 18,828' 27,718' 3,852 5,951 19,836' 4,129 2,070 10,003 5,4% 26 Transportation 27,272 27,623 14,096 12,700 14,922 13,035' 2,623 2,348 2,618 27 Community and regional development 5,294 5,755 2,075 2,765 2,690 1,833 649 964 790 28 Education, training, employment, and social services 31,938 35,697 15,592 15,451 16,152 18,083' 3,493 2,937 3,251 29 Health 44,490 48,391 20,750 22,643 23,360 24,078 4,520 3,613 4,511 30 Social security and medicare 298,219' 317,506' 158,469 135,322 149,017' 162,195 27,625 26,909 27,143 31 Income security 129,332 136,765 61,201 65,555 64,978 70,937 11,176 12,126 9,711 32 Veterans benefits and services 29,406' 30,066 14,956 13,241 15,797 14,891 2,246 3,628 1,503 33 Administration of justice 8,436' 9,396 4,105' 4,379' 4,351' 4,801' 763' 836 842 34 General government 9,518' 8,940 3,560 4,337 5,137 3,858 785 997 842 35 General-purpose fiscal assistance 1,816 n.a. 1,175 448 0 0 n.a. n.a. n.a. 36 Net interest8 151,748 169,314 71,933 76,098 78,317 86,009 16,011 13,684 14,124 37 Undistributed offsetting receipts -36,967 -37,212 -17,684 -17,766 -18,771 -18,131 -2,998 -4,625 -2,945 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 Financial Statistics • January 1990 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1987 1988 1989 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 2,354.3 2,435.2 2,493.2 2,555.1 2,614.6 2,707.3 2,763.6 2,824.0 2,881.1 2 Public debt securities 2,350.3 2,431.7 2,487.6 2,547.7 2,602.2 2,684.4 2,740.9 2,799.9 2,857.4 3 Held by public 1,893.1 1,954.1 1,9%.7 2,013.4 2,051.7 2,095.2 2,133.4 2,142.1 n.a. 4 Held by agencies 457.2 477.6 490.8 534.2 550.4 589.2 607.5 657.8 n.a. 5 Agency securities 4.0 3.5 5.6 7.4 12.4 22.9 22.7 24.0 n.a. 6 Held by public 3.0 2.7 5.1 7.0 12.2 22.6 22.3 23.6 n.a. 7 Held by agencies 1.0 .8 .6 .5 .2 .3 .4 .5 n.a. 8 Debt subject to statutory limit 2,336.0 2,417.4 2,472.6 2,532.2 2,586.9 2,669.1 2,725.6 2,784.6 2,829.8 9 Public debt securities 2,334.7 2,416.3 2,472.1 2,532.1 2,586.7 2,668.9 2,725.5 2,784.3 2,829.5 10 Other debt1 1.3 1.1 .5 .1 .1 .2 .2 .2 .3 11 MEMO: Statutory debt limit 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,870.0 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 Q4 Ql Q2 Q3 1 Total gross public debt 1,945.9 2,214.8 2,431.7 2,684.4 2,684.4 2,740.9 2,799.9 2,857.4 By type 2 Interest-bearing debt 1,943.4 2,212.0 2,428.9 2,663.1 2,663.1 2,738.3 2,797.4 2,836.3 3 Marketable 1,437.7 1,619.0 1,724.7 1,821.3 1,821.3 1,871.7 1,877.3 1,892.8 4 Bills 399.9 426.7 389.5 414.0 414.0 417.0 397.1 406.6 5 812.5 927.5 1,037.9 1,083.6 1,083.6 1,121.4 1,137.2 1,133.2 6 Bonds 211.1 249.8 282.5 308.9 308.9 318.4 328.0 338.0 7 Nonmarketable1 505.7 593.1 704.2 841.8 841.8 866.6 920.1 943.5 8 State and local government series 87.5 110.5 139.3 151.5 151.5 154.4 156.0 158.6 9 Foreign issues 7.5 4.7 4.0 6.6 6.6 6.7 6.2 6.8 10 Government 7.5 4.7 4.0 6.6 6.6 6.7 6.2 6.8 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 78.1 90.6 99.2 107.6 107.6 110.4 112.3 114.0 13 Government account series 332.2 386.9 461.3 575.6 575.6 594.7 645.2 663.7 14 Non-interest-bearing debt 2.5 2.8 2.8 21.3 21.3 2.6 2.5 21.1 By holder4 15 U.S. government agencies and trust funds 348.9 403.1 477.6 589.2 589.2 607.5 657.8 16 Federal Reserve Banks 181.3 211.3 222.6 238.4 238.4 228.6 231.8 17 Private investors 1,417.2 1,602.0 1,745.2 1,852.8 1,852.8 1,900.2 1,905.4 18 Commercial banks 198.2 203.5 201.5 192.2 192.2 203.3 n.a. 19 Money market funds 25.1 28.0 14.6 18.8 18.8 13.0 11.6 20 Insurance companies 78.5 105.6 104.9 111.2 111.2 112.5 n.a. 21 Other companies 59.0 68.8 84.6 86.5 86.5 n.a. n.a. n. a. 22 State and local Treasurys 226.7 262.8 284.6 313.6 313.6 326.3 n.a. Individuals 23 Savings bonds 79.8 92.3 101.1 109.6 109.6 112.2 114.0 24 Other securities 75.0 70.5 72.3 77.8 77.8 n.a. n.a. 25 Foreign and international5 212.5 251.6 287.3 349.5 349.5 363.1 355.8 26 Other miscellaneous investors 462.4 518.9 594.3 600.6 600.6 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 Aug. Sept. Oct. Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Immediate delivery2 1 U.S. Treasury securities 95,444 110,050 101,623 119,802 100,270 130,805 112,499 104,516 95,164 135,070 170,957 126,066 By maturity 2 Bills 34,247 37,924 29,387 30,893 27,668' 35,891 34,218 26,911 27,850 31,378 42,838 35,763 3 Other within 1 year 2,115 3,271 3,426 2,659 2,620 3,313 2,528 3,165' 3,661 2,391 3,299 3,476 4 1-5 years 24,667 27,918 27,777 36,330 31,526 39,957 31,558 36,966 30,273 40,082 57,404 39,069 5-10 years 20,455 24,014 24,939 31,471 24,719 34,361 28,831 23,080 21,442 42,989 46,326 30,359 6 Over 10 years 13,961 16,923 16,093 18,450 13,737 17,283 15,364 14,395 11,938 18,230 21,090 17,400 By type of customer 7 U.S. government securities dealers 3,669 2,936 2,761 3,824 2,794 4,2% 2,641 2,697' 3,901 4,236 4,424 4,583 8 U.S. government securities brokers 49,558 61,539 59,844 71,862 60,193 77,566 67,680 61,873 54,372 78,213 110044,,115533 75,291 9 All others3 42,217 45,575 39,019 44,116 37,283 48,943 42,178 39,946 36,891 52,622 62,380 46,192 10 Federal agency securities 16,747 18,084 15,903 19,048 19,193 20,978 23,126 18,141 18,305 21,566 23,514 21,123 11 Certificates of deposit 4,355 4,112 3,369 2,463 2,677 2,422 2,529 3,137 2,419 2,920 2,726 2,016 12 Bankers acceptances 3,272 2,965 2,316 1,910 2,086 2,169 1,933 2,140 2,290 2,029 2,311 2,063 13 Commercial paper 16,660 17,135 22,927 31,006 29,145 34,166 28,147 32,529 32,884 34,869 37,418 32,331 Futures contracts 14 Treasury bills 3,311 3,233 2,627 1,696 2,645 2,797 3,000 2,326 2,561 1,521 4,201 3,363 15 Treasury coupons 7,175 8,963 9,695 10,537 8,7% 10,326 10,365 9,328 7,927 11,521 12,482 10,419 16 Federal agency securities 16 5 1 8 38 20 43 31 30 4 42 6 Forward transactions 17 U.S. Treasury securities 1,876 2,029 2,095 2,926 2,116 2,168 2,473 2,854 1,232 2,262 3,321 2,593 18 Federal agency securities 7,830 9,290 8,008 12,067 8,614 10,561 10,117 7,294 7,420 12,805 12,894 9,105 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

A73 Domestic Nonfinancial Statistics • January 1990 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1989 1989 IItteemm 11998866 11998877 11998888 Aug. Sept. Oct. Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Positions Net immediate2 1 U.S. Treasury securities 12,912 -6,216 -22,765 3,771r 12,193' 10,680 8,809r 6,369 4,862 11,605 13,243 2 Bills 12,761 4,317 2,238 10,317 20,418r 19,166 20,207' 16,983 18,202 18,633 20,766 3 Other within 1 year 3,705 1,557 -2,236 -834 197 -1,650 357 -1,755 -2,067 -1,430 -1,323 4 1-5 years 9,146 649 -3,020 8,027 5,302r 9,677 4,589' 7,287 6,850 9,594 10,248 5 5-10 years -9,505 -6,564 -9,663 -8,764' -8,630 -10,499 -10,439 -11,067 -13,425 -8,997 -9,649 6 Over 10 years -3,197 -6,174 -10,084 -4,976 -5,093 -6,014 -5,904 -5,079 -4,698 -6,194 -6,799 7 Federal agency securities 32,984 31,911 28,230 35,268 36,097r 36,256 34,440' 32,650 37,444 38,105 34,904 8 Certificates of deposit 10,485 8,188 7,300 6,729 7,065 7,124 6,777 6,990 6,863 7,103 6,926 9 Bankers acceptances 5,526 3,660 2,486 1,875 2,154 2,105 2,105 1,818 1,866 2,234 2,086 10 Commercial paper 8,089 7,4% 6,152 7,490 8,258 9,055 7,822' 7,485 8,279 9,821 9,732 Futures positions 11 Treasury bills -18,059 -3,373 -2,210 -5,376 -6,106 -7,462 -6,872 -6,831 -7,076 -5,032 -8,215 12 Treasury coupons 3,473 5,988 6,224 -2,664 -4,797 -9,293 -4,501' -5,116 -7,952 -9,870 -10,265 13 Federal agency securities -153 -95 0 7 -26 68 -29 -55 7 92 103 Forward positions 14 U.S. Treasury securities -2,144 -1,211 346 -1,463 —607' 1,385 188' 512 1,093 1,988 1,258 15 Federal agency securities -11,840 -18,817 -16,348 -20,640 -17,478 -15,368 -15,446 -14,924 -16,717 -15,312 -13,817 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 98,913 126,709 136,327 162,006 157,149' 134,243 148,221 161,202 160,663 168,242 165,045 17 Term 108,607 148,288 177,477 222,799 212,378'" 189,932 221133,,887711 215,752 229,964 223322,,447777 224433,,880077 Repurchase agreements 18 Overnight and continuing 141,823 170,763 172,695 226,043 228,923' 196,854 215,280 231,938 234,582 248,470 243,940 19 Term 102,397 121,270 137,056 189,187 172,069' 155,577 178,567 172,804 181,784 193,551 205,520 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 11998844 11998855 11998866 11998877 May June July Aug. Sept. 1 Federal and federally sponsored agencies 271,564 293,905 307,361 341,386 407,324 406,837 411,874 411,979 408,591 2 Federal agencies 35,145 36,390 36,958 37,981 36,275 36,404 36,453 36,453 36,584 3 Defense Department1 142 71 33 13 7 7 7 7 7 4 Export-Import Bank ' 15,882 15,678 14,211 11,978 11,007 11,014 11,014 11,014 10,990 5 Federal Housing Administration 133 115 138 183 196 218 245 255 295 6 Government National Mortgage Association participation certificates' 2,165 2,165 2,165 1,615 0 0 0 0 00 7 Postal Service 1,337 1,940 3,104 6,103 6,445 6,445 6,445 6,445 6,445 8 Tennessee Valley Authority 15,435 16,347 17,222 18,089 18,620 18,720 18,742 18,732 18,847 9 United States Railway Association6 51 74 85 0 0 0 0 0 e 10 Federally sponsored agencies7 237,012 257,515 270,553 303,405 371,049 370,433 375,421 375,526 372,007 11 Federal Home Loan Banks 65,085 74,447 88,752 115,725 156,354 153,892 151,487 149,269 143,578 12 Federal Home Loan Mortgage Corporation 10,270 11,926 13,589 17,645 21,620 25,243 25,690 27,165 26,738 n Federal National Mortgage Association 83,720 93,896 93,563 97,057 105,404 106,308 109,926 110,155 111,507 14 Farm Credit Banks8 72,192 68,851 62,478 55,275 53,375 52,387 53,158 53,511 54,041 15 Student Loan Marketing Association9 5,745 8,395 12,171 16,503 26,469 24,256 26,813 27,079 27,126 16 Financing Corporation1" 0 0 0 1,200 6,980 7,500 7,500 7,500 8,170 17 Farm Credit Financial Assistance Corporation 0 0 0 0 847 847 847 847 847 MEMO 18 Federal Financing Bank debt" 145,217 153,373 157,510 152,417 140,220 139,568 138,814 137,690 136,092 Lending to federal and federally sponsored agencies 19 Export-Import Bank3 15,852 15,670 14,205 11,972 1111,,000011 11,008 1111,,000088 1111,,000088 1100,,998844 7,0 Postal Service 1,087 1,690 2,854 5,853 6,195 6,195 6,195 6,195 6,195 21 Student Loan Marketing Association 5,000 5,000 4,970 4,940 4,910 4,910 4,910 4,910 4,910 22 Tennessee Valley Authority 13,710 14,622 15,797 16,709 17,240 17,340 17,362 17,352 17,467 23 United States Railway Association 51 74 85 0 0 0 0 0 0 Other Lendingli 74 Fanners Home Administration 58,971 64,234 65,374 59,674 56,311 55,586 54,911 5544,,661111 5533,,331111 75 Rural Electrification Administration 20,693 20,654 21,680 21,191 19,236 19,236 19,257 19,270 19,275 26 Other 29,853 31,429 32,545 32,078 25,327 25,293 25,171 24,344 23,950 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 • January 1990 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars Type of issue or issuer, or use 1986 1987 Mar. Apr May June July Aug. Sept/ Oct. 1 All issues, new and refunding1 147,011 102,407 114,522 8,626 7,464 7,435 13,775 8,735 9,824 10,818 8,229 Type of issue 2 General obligation 46,346 30,589 30,312 2,185 2,301 2,342 4,960 3,789 2,199 3,500 3,032 3 Revenue 100,664 71,818 84,210 6,441 5,163 5,093 8,815 4,946 7,625 7,318 5,197 Type of issuer 4 State 14,474 10,102 8,830 256 1,407 392 1,989 970 694 764 1,388 5 Special district and statutory authority 89,997 65,460 74,409 5,962 4,238 4,979 8,033 4,868 7,027 7,567 4,254 6 Municipalities, counties, and townships 42,541 26,845 31,193 2,408 1,819 2,064 3,753 2,897 2,103 2,487 2,587 7 Issues for new capital, total 83,492 56,789 79,665 6,486 6,061 5,938 10,078 6,816 6,612 7,470 6,518 Use of proceeds 8 Education 12,307 9,524 15,021 1,055 1,225 1,024 2,678 1,302 1,639 1,124 9 Transportation 7,246 3,677 6,825 445 743 748 576 500 556 976 257 10 Utilities and conservation 14,594 7,912 8,496 901 759 467 1,058 551 813 622 437 11 Social welfare 11,353 11,106 19,027 1,329 1,048 1,376 1,509 1,632 1,553 1,242 1,562 12 Industrial aid 6,190 7,474 5,624 253 374 361 329 440 447 381 232 13 Other purposes 31,802 18,020 24,672 2,503 1,912 1,962 3,928 2,695 1,941 2,610 2,807 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 Type of issue or issuer, or use 1987 1988 Feb. Apr. May June July Aug/ Sept. 1 All issues1 424,737 392,156 408,843 14,846 26,191 14,405 21,471' 24,450' 17,658' 14,822 15,073 2 Bonds2 356,304 325,648 351,042 12,308 25,577 13,396 19,662' 21,622r 12,604' 12,787 12,800 Type of offering 3 Public, domestic 232,742 209,279 200,164 10,114 22,995 11,471 17,756' 18,714' 11,184' 11,971 10,800 4 Private placement, domestic . 80,760 92,070 127,700 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5. Sold abroad 42,801 24,299 23,178 2,194 2,582 1,925 1,906 2,908 1,420 816 2,000 Industry group 6 Manufacturing 90,788 61,666 69,573 1,319 7,456 1,457 7,716 3,273 2,701' 2,627 2,102 7 Commercial and miscellaneous 41,909 49,327 61,986 1,118 882 843 2,162 1,628 1,331' 1,090 1,393 8 Transportation 10,423 11,974 9,976 102 0 100 150 480 0 423 0 9 Public utility 30,973 23,004 19,318 670 153 1,695 385 2,936 1,173 670 1,074 10 Communication 16,441 7,340 5,902 230 63 453 122 4 300 358 308 11 Real estate and financial 165,770 172,343 184,287 8,869 17,023 9,128' 7,099' 7,619 7,923 13,302' 12 Stocks2 68,433 66,508 57,802 2,538R 614' 1,009' 1,809' 5,054' 2,035 2,273 2,828' Type 13 Preferred 11,514 10,123 6,544 975 0 495 306' 335' 920 1,013 519 14 Common 50,316 43,225 35,911 1,563r 614' 514' 1,503' 2,493' 4,134' 1,023 1,754 15 Private placement3 6,603 13,157 15,346 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 15,027 13,880 7,608 833 130' 155' 299r 63C 593' 393 193 17 Commercial and miscellaneous 10,617 12,888 8,449 273' 26 282' 115 512' 438 343 155 18 Transportation 2,427 2,439 1,535 0 53 169 39 0 0 0 0 19 Public utility 4,020 4,322 1,898 11 108 0 192 125 25 137 709 20 Communication 1,825 1,458 515 19 0 93 28C 25 29 20 0 21 Real estate and financial 34,517 31,521 37,798 1,402 297 310 1,536 3,969' 1,020 1,195 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 offering 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 1989 IItteemm 11998877 11998888 Feb. Mar. Apr. May June July Aug. Sept. INVESTMENT COMPANIES' 1 Sales of own shares2 381,260 271,237 22,741 23,149 25,496 24,661 25,817 25,330 26,800r 22,820 2 Redemptions of own shares3 314,252 267,451 22,252 24,135 26,183 22,483 22,562 20,053 22,262 21,499 3 Net sales 67,008 3,786 489 -986 -687 2,178 3,255 5,277 4,538r 1,321 4 Assets4 453,842 472,297 482,697 483,067 497,329 509,781 515,814 535,910 539,553 538,722 5 Cash position5 38,006 45,090 47,908 46,262 48,788 49,177 48,428 47,888 47,209 46,072 6 Other 415,836 427,207 434,789 436,805 448,541 460,604 467,386 488,022 492,344 492,650 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 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 282.1 298.7 328.6 308.2 318.1 325.3 330.9 340.2 316.3 307.8 292.3 2 Profits before tax 221.6 266.7 306.8 276.2 288.8 305.3 314.4 318.8 318.0 296.0 272.0 3 Profits tax liability 106.3 124.7 137.9 127.3 129.0 138.4 141.2 143.2 144.4 134.9 122.4 4 Profits after tax 115.3 142.0 168.9 148.9 159.9 166.9 173.2 175.6 173.6 161.1 149.5 5 Dividends 91.3 98.7 110.4 102.8 105.7 108.6 112.2 115.2 118.5 120.9 123.3 6 Undistributed profits 24.0 43.3 58.5 46.1 54.2 58.3 61.1 60.4 55.1 40.2 26.3 7 Inventory valuation 6.7 -18.9 -25.0 -20.4 -20.7 -28.8 -30.4 -20.1 -38.3 -21.0 n.a. 8 Capital consumption adjustment 53.8 50.9 46.8 52.4 49.9 48.9 46.9 41.5 36.6 32.3 26.3 •Trade and services are no longer being reported separately. They are included in Commercial and other, line 10. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1988 1989 IInndduussttrryy 11998877 11998888 1199889911 Ql Q2 Q3 Q4 Ql Q2 Q31 Q41 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.% 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 24.75 6.96 6.99 6.84 7.45 8.02 7.37 7.24 8.75 6 Air 6.53 7.28 7.85 6.33 6.91 8.09 7.69 7.04 9.49 11.30 10.31 7 Other 6.40 7.00 9.53 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 31.31 32.07 33.69 33.69 35.34 34.% 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 DomesticN onfinancial Statistics • January 1990 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1988 1989 AAccccoouunntt 11998855 11998866 11998877 Ql Q2 Q3 Q4 Ql Q2 Q3 ASSETS Accounts receivable, gross2 1 Consumer 111.9 134.7 141.1 141.5 144.4 146.3 146.2 140.2 144.9 147.2 2 Business 157.5 173.4 207.4 219.7 224.0 223.3 236.5 243.1 250.5 248.8 3 Real estate 28.0 32.6 39.5 41.4 42.5 43.1 43.5 45.4 47.4 48.9 4 Total 297.4 340.6 388.1 402.6 410.9 412.7 426.2 428.7 442.8 444.9 Less: 5 Reserves for unearned income 39.2 41.5 45.3 46.8 46.3 48.4 50.0 50.9 52.1 53.7 6 Reserves for losses 4.9 5.8 6.8 6.8 6.8 7.1 7.3 7.4 7.5 7.8 7 Accounts receivable, net 253.3 293.3 336.0 348.9 357.8 357.3 368.9 370.4 383.2 383.5 8 All other 45.3 58.6 58.3 60.1 70.5 68.7 72.4 75.1 81.5 83.1 9 Total assets 298.6 351.9 394.2 409.1 428.3 426.0 441.3 445.5 464.6 466.6 LIABILITIES 10 Bank loans 18.0 18.6 16.4 14.9 13.3 11.9 15.4 11.6 12.2 12.3 11 Commercial paper 99.2 117.8 128.4 125.2 131.6 129.4 142.0 147.9 149.2 147.4 Debt 12 Other short-term 12.7 17.5 28.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Long-term 94.4 117.5 137.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Due to parent n.a. n.a. n.a. 49.0 51.4 51.5 50.6 56.8 59.7 60.4 15 Not elsewhere classified n.a. n.a. n.a. 132.4 139.8 139.3 137.9 134.5 141.3 146.1 16 All other liabilities 41.5 44.1 52.8 56.1 58.7 58.9 59.8 58.1 63.5 60.4 17 Capital, surplus, and undivided profits 32.8 36.4 31.5 31.5 33.5 34.9 35.6 36.6 38.7 40.0 18 Total liabilities and capital 298.6 351.9 394.2 409.1 428.3 426.0 441.3 445.5 464.6 466.6 1. Components may not add to totals because of rounding. 2. Excludes pools of securitized assets. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Outstanding and Net Change1 Millions of dollars, seasonally adjusted 1989 TTyyppee 11998866 11998877 11998888 Apr. May June July Aug. Sept. 1 Total 172,060 205,810 234,529 244,882 245,861 249,322 251,126 253,822 258,851 Retail financing of installment sales 2 Automotive 26,015 35,782 36,548 38,415 38,816 39,042 39,183 39,355 39,258 3 Equipment 23,112 25,170 28,298 28,790 27,638 27,773 28,128 29,039 29,639 4 Pools of securitized assets2 n.a. n.a. n.a. 817 846 807 769 793 755 Wholesale 5 Automotive 23,010 30,507 33,300 34,383 34,534 34,021 33,233 33,566 37,243 6 Equipment 5,348 5,600 5,983 6,153 6,0% 6,165 6,244 6,497 6,602 / All other 7,033 8,342 9,341 9,852 9,929 9,862 10,001 9,990 9,957 8 Pools of securitized assets2 n.a. n.a. n.a. 0 0 0 0 0 0 Leasing 9 Automotive 19,827 21,952 24,673 25,544 26,011 26,515 26,701 26,739 26,865 10 Equipment 38,179 43,335 57,455 60,246 61,022 63,370 64,086 64,186 65,170 11 Pools of securitized assets2 n.a. n.a. n.a. 733 824 7% 887 990 948 12 Loans on commercial accounts receivable and factored commercial accounts receivable 15,978 18,078 17,796 18,677 18,772 19,302 19,989 20,098 19,611 13 All other business credit 13,557 17,043 21,134 21,272 21,371 21,669 21,904 22,571 22,804 Net change (during period) 14 Total 15,763 33,750 22,662 4,696 978 3,462 1,803 2,697 5,029 Retail financing of installment sales 15 Automotive 5,355 9,767 766 720 401 226 141 172 -97 16 Equipment 629 2,058 1,384 583 -1,152 135 354 911 600 17 Pools of securitized assets n.a. n.a. n.a. -38 29 -39 -38 24 -38 Wholesale 18 Automotive -978 7,497 2,793 856 151 -513 -788 332 3,677 19 Equipment 780 252 226 65 -56 69 79 253 104 2 2 1 0 P A o ll o l o s t h o e f r securitized assets2 n. 2 a 2 . 4 n 1, . 3 a 0 . 9 n. 9 a 9 . 9 17 0 0 7 0 8 -68 0 13 0 9 -11 0 -32 0 Leasing 22 Automotive 3,552 2,125 2,721 -40 467 504 187 38 126 2 2 3 4 P E o q o u l i s p m of e n se t curitized assets2 3 n , . 4 a 1 . 1 5 n , . 1 a 5 . 6 9 n , . 9 a 6 . 2 - 7 2 6 3 2 77 9 6 1 2, - 3 2 4 8 8 7 9 1 1 6 1 9 0 9 3 - 9 4 8 2 4 25 Loans on commercial accounts receivable and factored commercial accounts receivable 213 2,100 -282 883 95 530 687 109 -487 26 All other business credit 2,576 3,486 4,091 760 100 298 235 667 234 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 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms 1 Purchase price (thousands of dollars) 118.1 137.0 150.0 169.2 151.8 150.5 174.5 160.8 160.6 n.a. 2 Amount of loan (thousands of dollars) 86.2 100.5 110.5 124.5 112.3 111.0 125.3 119.4 118.6 n.a. 3 Loan/price ratio (percent) 75.2 75.2 75.5 75.0 75.3 75.2 73.8 75.6 75.3 n.a. 4 Maturity (years) 26.6 27.8 28.0 28.4 28.3 27.8 28.6 28.3 28.5 n.a. 5 Fees and charges (percent of loan amount) 2.48 2.26 2.19 1.70 2.12 1.91 2.42 2.31 2.13 n.a. 6 Contract rate (percent per year) 9.82 8.94 8.81 9.88 9.82 10.09 10.06 9.83 9.86 n.a. Yield (percent per year) 7 FHLBB series3 10.26 9.31 9.18 10.17 10.18 10.42 10.48 10.22 10.23 n.a. 8 HUD series4 10.07 10.17 10.30 10.84 10.43 10.04 9.70 10.05 10.04 9.79 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 9.91 10.16 10.49 10.88 10.55 10.08 9.61 9.95 9.94 9.73 10 GNMA securities6 9.30 9.43 9.83 10.36 10.11 9.75 9.55 9.48 9.47 9.21 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 98,048 95,030 101,329 102,191 102,564 103,309 104,421 105,896 107,052 108,180 12 FHA/VA-insured 29,683 21,660 19,762 19,607 19,612 19,586 19,630 19,589 19,608 19,843 13 Conventional 68,365 73,370 81,567 82,584 82,952 83,723 84,791 86,307 87,444 88,337 Mortgage transactions (during period) 14 Purchases 30,826 20,531 23,110 1,163 1,419 1,862 2,091 2,724 2,223 2,267 Mortgage commitments7 15 Contracted (during period) 32,987 25,415 23,435 1,118 1,626 2,573 2,513 2,842 2,328 2,963 16 Outstanding (end of period) 3,386 4,886 2,148 4,661 4,673 5,236 5,648 5,755 5,865 6,548 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 13,517 12,802 15,105 18,918 19,443 20,121 20,533 21,024 n.a. n.a. 18 FHA/VA 746 686 620 599 586 585 585 589 n.a. n.a. 19 Conventional 12,771 12,116 14,485 18,320 18,857 19,535 19,948 20,435 n.a. n.a. Mortgage transactions (during period) 20 Purchases 103,474 76,845 44,077 5,861 5,141 7,392 5,720 7,283 n.a. n.a. 21 Sales 100,236 75,082 39,780 5,554 4,474 6,551 5,180 6,650' n.a. n.a. Mortgage commitments9 22 Contracted (during period) 110,855 71,467 66,026 4,196 5,186 7,948 6,608 5,705 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 • January 1990 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 Q2P 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 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 banks2 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 institutions3 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 IS Commercial 121,236 150,943 113399,,441166 115511,,887700 113399,,002299 113399,,441166 114400,,225555 113388,,220011 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 25 1- to 4-family 47 25 26 24 51 26 26 24 76 Multifamily 842 419 18 13 27 Farmers Home Administration 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 Administration 348 245 104 106 106 104 96 85 55 1- to 4-family 142 121 26 23 27 26 24 2233 S6 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 76,736 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 1989 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998877 11998888 Jan. Feb. Mar. Apr. May June July Aug/ Sept. Amounts outstanding (end of period) 1 Total 607,721 659,507 682,020 687,397 691,162 693,911 698,132 700,849 700,344 703,001 703,607 By major holder ? Commercial banks , 282,910 318,925 316,797 318,423 318,242 320,458 323,363 324,438 323,621 326,135 327,399 3 Finance companies 140,281 145,180 141,795 143,419 143,070 144,378 145,523 146,055 145,488 144,386 144,188 4 Credit unions 80,087 86,118 87,093 87,813 88,514 89,330 89,890 90,073 89,852 90,016 90,039 5 Retailers 40,975 43,498 40,986 41,052 41,300 41,301 41,323 41,649 41,798 41,989 42,221 6 Savings institutions 59,851 62,099 62,867 63,109 62,735 61,919 61,311 59,920 60,092 59,229 58,900 7 Gasoline companies 3,618 3,687 3,655 3,677 3,682 3,787 3,897 4,017 3,936 3,976 3,886 8 Pools of securitized assets4 n.a. n.a. 28,827 29,903 33,619 32,737 32,826 34,696 35,557 37,270 36,974 By major type of credit 9 Automobile 265,976 281,174 286,382 288,767 288,850 289,654 290,741 290,192 288,526 288,533 228877,,669911 10 Commercial banks 109,201 123,259 122,160 122,983 123,062 123,878 125,118 125,592 124,881 126,597 126,921 1 1 1 ? F C i r n e a d n it c e u n co io m n p s a . n .. i . e D s 4 9 0 8 , , 3 1 5 9 1 5 4 97 1 , , 2 3 0 2 4 6 4 8 1 7 , , 7 9 0 6 7 8 4 88 1 , , 7 9 8 6 9 4 4 8 2 9 , , 2 56 1 7 1 4 90 2 , , 2 5 6 1 8 0 4 90 2 , , 9 6 7 8 6 7 4 9 2 1 , , 6 1 8 8 4 4 4 9 2 0 , , 6 2 2 1 4 3 4 89 2 , , 4 7 3 4 9 7 4 8 2 8 , , 8 3 0 1 3 7 13 Savings institutions 18,228 19,385 19,506 19,464 19,231 18,866 18,566 18,032 17,972 17,603 17,695 14 Pools of securitized assets4 n.a. n.a. 15,042 15,568 14,779 14,132 13,395 12,700 12,835 12,147 11,955 15 Revolving 153,884 174,792 176,716 178,570 182,831 184,500 186,502 189,622 191,028 194,398 195,153 16 Commercial banks 99,119 117,572 111,133 111,706 112,553 114,130 115,407 115,561 115,967 117,012 117,894 17 Retailers 36,389 38,692 36,176 36,257 36,489 36,497 36,504 36,814 36,963 37,134 37,355 18 Gasoline companies 3,618 3,687 3,655 3,677 3,682 3,787 3,897 4,017 3,936 3,976 3,886 19 Savings institutions 10,367 10,151 10,479 10,722 10,860 10,918 11,008 10,951 11,176 11,206 11,000 70 Credit unions 4,391 4,691 4,785 4,866 4,947 5,035 5,109 5,187 n.a. n.a. n.a. 21 Pools of securitized assets4 n.a. n.a. 10,489 11,342 14,299 14,134 14,578 17,117 17,795 19,827 19,731 ?? Mobile home 26,387 25,744 26,036 25,992 24,168 23,993 23,952 23,685 23,630 22,938 22,846 73 Commercial banks 9,220 8,974 8,974 8,974 8,844 8,836 8,878 8,847 8,830 8,808 8,793 74 Finance companies 7,762 7,186 7,376 7,308 5,687 5,659 5,684 5,674 5,624 5,100 5,087 25 Savings institutions 9,406 9,583 9,687 9,710 9,637 9,498 9,390 9,163 9,176 9,030 8,966 76 Other 161,475 177,798 192,886 194,068 195,314 195,763 196,936 197,349 197,161 197,132 197,916 77 Commercial banks 65,370 69,120 74,532 74,760 73,783 73,614 73,960 74,438 73,944 73,718 73,791 78 Finance companies 34,324 40,790 46,451 47,322 47,816 48,451 48,863 49,197 49,650 49,847 50,784 79 Credit unions 35,344 40,102 40,601 40,983 41,357 41,785 42,094 42,228 42,036 42,025 41,949 30 Retailers 4,586 4,807 4,809 4,795 4,811 4,804 4,819 4,834 4,835 4,855 4,866 31 Savings institutions 21,850 22,981 23,196 23,214 23,006 22,638 22,347 21,773 21,769 21,390 21,239 32 Pools of securitized assets4 n.a. n.a. 3,296 2,993 4,541 4,471 4,853 4,879 4,927 5,296 5,288 Net change (during period) 33 Total 35,674 51,786 22,513 5,376 3,765 2,749 4,221 2,717 -505 2,657 606 By major holder 34 Commercial banks 19,884 36,015 -2,128 1,626 -181 2,216 2,904 1,076 -817 2,514 1,264 35 Finance companies 6,349 4,899 -3,385 1,624 -349 1,309 1,145 532 -567 -1,102 -198 36 Credit unions 3,853 6,031 975 720 701 815 560 184 -222 164 23 37 Retailers3 1,568 2,523 -2,512 67 247 2 21 326 149 192 231 38 Savings institutions 3,689 22,,224488 768 242 -375 -815 -609 -1,390 172 -863 -329 39 Gasoline companies 332 6699 -32 22 6 104 110 120 -81 39 -89 40 Pools of securitized assets4 n.a. n.a. n.a. 1,076 3,716 -882 89 1,870 861 1,713 -296 By major type of credit 41 Automobile 18,663 15,198 5,208 2,385 82 804 1,087 -549 -1,667 7 --884422 42 Commercial banks 7,919 14,058 -1,099 823 79 816 1,239 474 -711 1,716 324 43 Credit unions 1,916 975 381 257 247 300 177 -3 -60 123 56 44 Finance companies 5,639 -991 -9,236 821 778 701 708 208 -970 -775 -1,122 45 Savings institutions 3,188 1,157 121 -42 -233 -366 -300 -533 -61 -369 92 46 Pools of securitized assets4 n.a. n.a. n.a. 526 -789 -647 -737 -695 135 -688 -192 47 Revolving 16,871 20,908 1,924 1,854 4,261 1,670 2,002 3,120 1,406 3,370 756 48 Commercial banks 12,188 18,453 -6,439 573 848 1,576 1,277 154 405 1,045 882 49 Retailers 1,866 2,303 -2,516 81 232 8 7 310 149 171 221 50 Gasoline companies 332 69 -32 22 6 104 110 120 -81 39 -89 51 Savings institutions 1,771 -216 328 243 138 58 90 -57 225 30 -206 52 Credit unions 715 300 94 81 81 88 74 78 n.a. n.a. n.a. 53 Pools of securitized assets4 n.a. n.a. n.a. 853 2,957 -165 444 2,539 678 2,032 -96 54 Mobile home -968 -643 292 -44 -1,824 -174 -41 -267 -56 -692 -91 55 Commercial banks 192 -246 0 1 -131 -7 42 -31 -18 -22 -15 56 Finance companies -1,052 -576 190 -68 -1,621 -28 25 -10 -50 -524 -13 57 Savings institutions -107 177 104 23 -72 -140 -108 -227 12 -146 -64 58 Other 1,108 16,323 15,088 1,182 1,246 449 1,173 413 -189 -29 785 59 Commercial banks -415 3,750 5,412 229 -977 -169 346 478 -494 -226 73 60 Finance companies 1,761 6,466 5,661 871 494 635 412 334 453 197 937 61 Credit unions 1,221 4,758 499 382 374 428 309 133 -191 -11 -77 62 Retailers -297 221 2 -14 16 -7 15 16 0 21 11 63 Savings institutions -1,162 1,131 215 18 -208 -368 -291 -574 -5 -379 -151 64 Pools of securitized assets4 n.a. n.a. n.a. -303 1,548 -70 382 26 48 369 -8 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 • January 1990 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1989 IItteemm 11998866 11998877 11998888 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks2 1 48-month new car 11.33 10.45 10.85 n.a. n.a. 12.44 n.a. n.a. 12.13 n.a. 2 24-month personal 14.82 14.22 14.68 n.a. n.a. 15.65 n.a. n.a. 15.45 n.a. 3 120-month mobile home 13.99 13.38 13.54 n.a. n.a. 14.35 n.a. n.a. 14.13 n.a. 4 Credit card 18.26 17.92 17.78 n.a. n.a. 18.11 n.a. n.a. 18.07 n.a. Auto finance companies New car 9.44 10.73 12.60 13.07 12.10 11.80 11.96 11.94 12.22 12.42 6 Used car 15.95 14.60 15.11 16.12 16.39 16.45 16.45 16.37 16.31 16.22 OTHER TERMS4 Maturity (months) 7 New car 50.0 53.5 56.2 55.4 53.4 52.7 53.0 52.9 52.9 53.1 8 Used car 42.6 45.2 46.7 47.1 47.8 46.6 46.5 46.4 46.2 45.8 Loan-to-value ratio 9 New car 91 93 94 92 91 91 91 91 90 88 10 Used car 97 98 98 97 97 97 97 97 96 96 Amount financed (dollars) 11 New car 10,665 11,203 11,663 11,867 11,886 11,973 12,065 12,108 11,949 11,841 12 Used car 6,555 7,420 7,824 7,958 7,855 7,908 7,921 7,988 7,874 7,856 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 Q4 Ql Q2 Q3 Q4 Ql Q2' Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 750.7r 846.3 831.1r 693.2' 767.0r 764.9 728.2' 827.2' 754.4r 758.3r 792.2' 658.9 By sector and instrument 2 U.S. government 198.8 223.6 215.0 144.9 157.5 175.1 211.6 113.7 162.5 142.1 199.9 70.9 Treasury securities 199.0 223.7 214.7 143.4 140.0 170.2 212.0 106.0 141.6 100.5 201.1 65.8 4 Agency issues and mortgages -.2 -.1 .4 1.5 17.4 5.0 -.5 7.7 20.9 41.6 -1.2 5.1 5 Private domestic nonfinancial sectors 551.9 622.7 616.1 548.3 609.6' 589.8 516.6' 713.4' 592.V 616.3' 592.3' 588.0 6 Debt capital instruments 320.0 451.4 460.3 458.5 462.6 417.8 386.5 561.0 463.9 438.9 427.8' 394.1 7 Tax-exempt obligations 51^ 135.4' n.r 34.1' 34.0' 25.0 29.1 37.9 34.8 34.3 29.3' 20.6 8 Corporate bonds 46.1 73.8 121.3 99.9 120.9 81.6 118.8 143.9 115.9 104.9 111.6 138.5 9 Mortgages 222.8 242.2 316.3 324.5 307.7 311.2 238.7 379.2 313.2 299.7 286.9 234.9 10 Home mortgages 136.7 156.8 218.7 234.9 229.1 225.5 170.7 300.7 231.0 214.0 205.2 186.1 11 Multifamily residential 25.2 29.8 33.5 24.4 18.9 14.9 24.2 14.7 19.5 17.3 27.2 8.1 17 Commercial 62.2 62.2 73.6 71.6 61.7 73.4 48.5 65.4 65.4 67.7 58.8 38.7 13 Farm -1.2 -6.6 -9.5 -6.4 -2.1 -2.6 -4.7 -1.6 -2.6 .7 -4.4 2.1 14 Other debt instruments 231.9 171.3 155.8 89.7 147.0' 172.0 130.1' 152.4' 128.1' 177.3' 164.5' 193.9 15 Consumer credit 81.6 82.5 58.0 32.9 51.1 54.1 43.7 51.9 35.5 73.1 34.8 46.0 16 Bank loans n.e.c 66.3 38.6 66.7 10.8 38.4 71.9 20.8 58.8 7.3 66.6 23.1' 29.9 17 Open market paper 21.7 14.6 -9.3 2.3 11.6 -10.8 2.4 6.8 17.1 20.0 44.1 44.9 18 Other 62.2 35.6 40.5 43.8 45^ 56.7 63.2' 34.8' 68.1' 17.6' 62.5' 73.1 19 By borrowing sector 551.9 622.7 616.1 548.3 609.6' 589.8 516.6' 713.4' 592.0' 616.3' 592.3' 588.0 20 State and local governments 28.1 90.9 36.2 33.6 29.8 24.3 23.4 37.0 28.1 30.6 29.7 27.7 71 Households 231.5 284.6 289.2 271.9 287.9' 278.0 230.2' 346.7' 291.6' 283.3' 263.1' 227.1 ?? Nonfinancial business 292.3 247.2 290.7 242.8 291.8 287.4 263.0 329.7 272.3 302.4 299.4' 333.3 73 Farm -.4 -14.5 -16.3 -10.6 -7.5 .4 -12.7 -3.3 -2.2 -11.8 -2.2' .3 24 Nonfarm noncorporate 123.2 129.3 103.2 107.9 91.9 115.7 85.2 83.6 100.5 98.2 91.1 70.0 25 Corporate 169.6 132.4 203.7 145.5 207.5 171.4 190.5 249.4 174.0 216.0 210.6' 263.0 26 Foreign net borrowing in United States 8.4 1.2 9.7r 4.9' 6.¥ 13.9 4.8 5.4 4.1 13.3' -1.1' -3.9 77 Bonds 3.8 3.8 3.1 7.4 6.9 21.4 14.2 2.6 5.9 5.1 3.2 11.1 28 Bank loans n.e.c -6.6 -2.8 -1.0 -3.6 -1.8 -4.3 1.7 -3.3 .0 -5.7 4.9 1.7 29 Open market paper 6.2 6.2 11.5 2.1 9.6 -1.6 .7 6.5 10.3 21.0 12.1' -8.1 30 U.S. government loans 5.0 -6.0 -3.9 -1.0 -7.8' -1.6 -11.8 -.4 -12.1 -7.1' -21.4' -8.6 31 Total domestic plus foreign 759.1 847.5 840.9 698.1 773.9' 778.8 733.0r 832.6' 758.5' 771.7' 791.1' 655.0 Financial sectors 32 Total net borrowing by financial sectors 150.7 201.3 318.9 315.0 264.2 240.1 242.5 263.9 232.1 318.3 394.4' 123.4 By instrument 33 U.S. government related 74.9 101.5 187.9 185.8 137.5 161.5 128.8 104.3 144.4 172.5 216.1 110055..88 34 Sponsored credit agency securities 30.4 20.6 15.2 30.2 44.9 62.8 59.5 11.1 46.5 62.3 84.9 12.5 35 Mortgage pool securities 44.4 79.9 173.1 156.4 92.6 98.8 69.3 93.1 97.8 110.1 131.2 93.3 36 Loans from U.S. government .0 1.1 -.4 -.8 .0 .0 .0 .0 .0 .0 .0 .0 37 Private financial sectors 75.9r 99.7r 131.C 129.2' 126.7' 78.6 113.7 159.6 87.7 145.8 178.3' 17.6 38 Corporate bonds 34.3 50.9 82.9 78.9 51.7 53.4 60.0 71.1 32.5 43.0 52.7' 31.4 39 Mortgages .4 .1 .1 .4 .3 .8 -.1 .1 -.1 1.2 .3 .0 40 Bank loans n.e.c 1.4 2.6 4.0 -3.3 1.4 -11.1 5.9 5.7 -5.6 -.3 3.0 .3 41 Open market paper 24.0 32.0 24.2 28.8 53.6 -4.2 38.5 70.5 35.1 70.4 53.2' 2.8 42 Loans from Federal Home Loan Banks 15.7 14.2 19.8 24.4 19.7 39.8 9.4 12.3 25.8 31.4 69.1 -16.9 By sector 43 150.7 201.3 318.9 315.0 264.2 240.1 242.5 263.9 232.1 318.3 394.4' 123.4 44 Sponsored credit agencies 30.4 21.7 14.9 29.5 44.9 62.8 59.5 11.1 46.5 62.3 84.9 12.5 45 Mortgage pools 44.4 79.9 173.1 156.4 92.6 98.8 69.3 93.1 97.8 110.1 131.2 93.3 46 Private financial sectors 75.9r 99.7' 131.0' 129.2' 126.7' 78.6 113.7 159.6 87.7 145.8 178.3' 17.6 47 Commercial banks 7.3 -4.9 -3.6 7.1 -3.9 11.2 -16.7 -1.6 -.9 3.7 -13.4 -.9 48 Bank affiliates 16.1 16.6 15.2 14.3 5.2 -9.9 -8.8 22.4 6.1 .8 6.4 6.5 49 Savings and loan associations 17.2 17.3 20.9 19.6 19.9 28.3 10.0 19.1 24.1 26.3 71.3 -16.2 50 Mutual savings banks 1.2 1.5 4.2 8.1 1.9 12.6 2.3 1.1 .5 3.8 -2.8 -1.1 51 Finance companies 24.0 57.2 54.5 40.3 67.0 28.3 78.4 85.4 40.7 63.6 78.4' 32.8 5? REITs .8 .5 1.0 .8 4.1 2.2 5.4 1.7 -5.9 15.0 -.9 -2.2 53 SCO Issuers 9.3 11.5 39.0 39.1 32.5 6.0 43.0 31.5 23.1 32.5 39.3' -1.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • January 1990 1.57—Continued 1987 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998844 11998855 11998866 11998877 11998888 Q4 Q1 Q2 Q3 Q4 Q1 Q2 All sectors 54 Total net borrowing 909.8 1,048.8 1,159.8 1,013.2 1,038.lr 1,019.0 975.5r 1,096.5' 990.6' 1,089.9' 1,185.4' 778.4 55 U.S. government securities 273.8 324.2 40232.4. 1' 331.5 294.9 336.7 340.4 218.0 306.8 314.6 416.0 176.7 56 State and local obligations si.o' 135.4' 34. V 34.0' 25.0 29.1 37.9 34.8 34.3 29.3' 20.6 57 Corporate and foreign bonds 84.3 128.4 207.3 186.3 179.5 156.3 193.0 217.6 154.3 153.0 167.5' 181.1 58 Mortgages 223.1 242.2 316.4 324.9 308.0 312.0 238.6 379.3 313.1 300.8 287.2 234.9 59 Consumer credit 81.6 82.5 58.0 32.9 51.1 54.1 43.7 51.9 35.5 73.1 34.8 46.0 60 Bank loans n.e.c 61.1 38.3 69.7 3.8 38.0 56.6 28.3 61.2 1.7 60.7 31.1' 31.9 61 Open market paper 51.9 52.8 26.4 33.2 74.9 -16.6 41.6 83.9 62.5 111.5 109.4 39.6 62 Other loans 82.9 45.0 56.1 66.5 57.8' 94.9 60.8' 46.8' 81.8' 42.0' 110.2' 47.5 63 MEMO: U.S. government, cash balance 6.3 14.4 .0 -7.9 10.4 -38.9 47.6 1.2 10.6 -17.9 -22.5 43.7 Totals net of changes in U.S. government cash balances 64 Net borrowing by domestic nonfinancial 744.4 831.9 831.2 701.1 756.6' 803.8 680.6' 825.9' 743.8' 776.3' 814.7' 615.2 65 Net borrowing by U.S. government 192.5 209.3 215.0 152.8 147.1 214.0 164.0 112.5 151.8 160.0 222.4 27.2 External corporate equity funds raised in United States 66 Total net share issues -36.0 20.1 90.5r 14.3' -90.4 -101.0 -133.7 -73.5 -163.5 -163.5' -48.7 6 6 8 7 A M l u l t o u t a h l e f r u nds -6 2 5 9 . . 3 3 -6 8 4 4 . . 3 4 - 1 6 5 8 9 . . 5 0 r r -571i..6y r -11 - 7 . . 7 2 ' ' -92 1 . . 2 8 -9 -9 1 . . 5 5 -1 - 2 6 7 . . 6 0 -75 1 . . 0 5 -17 1 5 1 . . 4 9 -167 3 . .6 1 ' -7 2 2 4 . . 7 0 69 Nonfinancial corporations -74.5 -81.5 -80.8 -76.5 -130.5 -88.0 -95.0 -140.0 -92.0 -195.0 -180.0 -105.0 /0 Financial corporations 8.2 13.5 11.1 21.4 12.4 10.0 2.4 19.0 14.6 13.5 9.4' 17.1 71 Foreign shares purchased in United States .9 3.7 1.2 -2.1 .9 -14.1 1.1 -6.0 2.4 6.1 3.6 15.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates. 1987 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998844 11998855'' 11998866'' 11998877'' 11998888'' Q4 Ql Q2 Q3 Q4 Ql' Q2' 1 Total funds advanced in credit markets to domestic nonfinancial sectors 750.7r 846.3 831.1 693.2 767.0 764.9 728.2' 827.2' 754.4' 758.3' 792.2 658.9 By public agencies and foreign 2 Total net advances 157.6 202.0 314.0 262.8 237.6 278.0 278.6 185.5 196.9 289.3' 348.7 26.7 3 U.S. government securities 38.9 45.9 69.4 70.1 85.0 123.3 153.2 43.3 24.1 119.6 97.6 -102.4 4 Residential mortgages 56.5 94.6 170.1 153.2 104.0 105.9 88.9 107.9 98.1 121.2 133.3 106.6 5 FHLB advances to thrifts 15.7 14.2 19.8 24.4 19.7 39.8 9.4 12.3 25.8 31.4 69.1 -16.9 6 Other loans and securities 46.6 47.3 54.7 15.1 28.8 9.0 27.1 22.1 49.0 17.1' 48.7 39.4 Total advanced, by sector 7 U.S. government 17.1 17.8 9.7 -7.9 -4.9 6.4 -7.0 -7.6 4.3 -9.3' 2.8 3.1 8 Sponsored credit agencies 74.3 103.5 187.2 183.4 129.6 160.0 114.3 105.7 130.1 168.5 221.4 15.6 9 Monetary authorities 8.4 18.4 19.4 24.7 10.5 22.8 2.7 5.0 15.5 18.9 5.2 -3.9 10 Foreign 57.9 62.3 97.8 62.7 102.3 88.8 168.6 82.5 47.0 111.2 119.3 11.9 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 74.9 101.5 187.9 185.8 137.5 161.5 128.8 104.3 144.4 172.5 216.1 105.8 12 Foreign 8.4 1.2 9.7 4.9 6.9 13.9 4.8 5.4 4.1 13.3' -1.1 -3.9 Private domestic funds advanced 13 Total net advances 676.3' 747.0 714.8 621.1 673.8 662.3 583.2' 751.3' 705.9' 654.8' 658.4 734.1 14 U.S. government securities 234.9 278.2 333.9 261.4 209.9 213.3 187.2 174.7 282.8 195.0 318.4 279.1 15 State and local obligations 51.0' 135.4 22.7 34.1 34.0 25.0 29.1 37.9 34.8 34.3 29.3 20.6 16 Corporate and foreign bonds 35.1 40.8 84.2 87.5 104.4 101.1 126.5 126.2 91.7 73.0 89.4 132.3 17 Residential mortgages 105.3 91.8 82.0 106.1 144.0 134.5 106.0 207.5 152.3 110.1 99.2 87.5 18 Other mortgages and loans 265.6' 214.8 211.8 156.5 201.2 228.2 143.8' 217.2' 170.1' 273.7' 191.3 197.7 19 LESS: Federal Home Loan Bank advances 15.7 14.2 19.8 24.4 19.7 39.8 9.4 12.3 25.8 31.4 69.1 -16.9 Private financial intermediation 20 Credit market funds advanced by private financial institutions 585.8' 579.9 744.0 560.8 558.2 617.0 617.4' 553.7' 427.5' 634.1' 568.6 544.3 21 Commercial banking 169.2r 186.0 197.5 136.8 155.3 278.6 87.9 194.5 118.4 220.5 120.6 158.6 22 Savings institutions 154.7' 87.9 107.6 136.8 120.5 158.2 96.0 134.9' 157.0' 94.2 62.2 -73.1 23 Insurance and pension funds 121.8 154.4 174.6 210.9 194.9 149.6 257.4' 182.7' 150.5' 189.1' 228.3 182.5 24 Other finance 140.1 151.6 264.2 76.3 87.4 30.5 176.1 41.6 1.7 130.3 157.6 276.2 25 Sources of funds 585.8' 579.9 744.0 560.8 558.2 617.0 617.4' 553.7' 427.5' 634.1' 568.6 544.3 26 Private domestic deposits and RPs 322.6' 214.3 262.6 144.1 219.2 329.6 305.5' 102.0' 191.9' 277.4' 166.5 213.4 27 Credit market borrowing 15.V 99.7 131.0 129.2 126.7 78.6 113.7 159.6 87.7 145.8 178.3 17.6 28 Other sources 187.3' 265.9 350.4 287.5 212.3 208.8 198.2' 292.1' 147.9' 210.9' 223.8 313.3 29 Foreign funds 8.8 19.7 12.9 43.7 9.3 8.0 -60.6 94.5 -42.1 45.5 -28.4 -16.0 30 Treasury balances 4.0 10.3 1.7 -5.8 7.3 -27.8 44.2 -16.3 5.6 -4.1 -21.6 26.6 31 Insurance and pension reserves 124.0 131.9 149.3 176.1 186.8 171.1 190.1' 184.0' 109.8' 263.3' 133.0 151.5 32 Other, net 50.5' 104.1 186.5 73.6 8.8 57.4 24.4' 29.¥ 74.5' -93.8' 140.8 151.2 Private domestic nonfinancial investors 33 Direct lending in credit markets 166.4' 266.8 101.8 189.6 242.3 124.0 79.5' 357.2' 366.2' 166.5' 268.1 207.5 34 U.S. government securities 111.4' 157.8 60.9 100.0 149.3 85.4 119.6' 103.2' 225.7' 148.7' 211.1 123.2 35 State and local obligations 27.1' 37.7 -21.7 45.6 33.9 19.7 19.7' 37.2' 56.4' 22.3' 35.7 -11.4 36 Corporate and foreign bonds -4.1' 4.2 39.3 24.1 2.6 50.4 -39.6' 61.4' -5.8' -5.7' -15.4 32.8 37 Open market paper 7.8' 47.5 5.4 6.6 37.2 -32.8 -14.5' 98.6' 77.4' -12.6' 67.1 19.5 38 Other 24.2 19.6 17.9 13.3 19.3 1.3 -5.8' 56.8' 12.5' 13.9' -30.3 43.4 39 Deposits and currency 326.1' 224.6 283.0 160.2 221.8 364.0 313.5' 110.0' 215.7' 248.2' 211.2 231.1 40 Currency 8.6 12.4 14.4 19.0 14.7 31.9 10.7 13.8 29.3 5.1 19.3 12.6 41 Checkable deposits 30.2' 41.9 95.0 -3.0 12.3 62.3 3.6' -30.5' -21.4' 97.3' -54.5 -83.0 42 Small time and savings accounts 150.7 138.5 120.6 76.0 122.2 141.2 199.5 130.5 72.7 86.0 26.4 117.4 43 Money market fund shares 49.0 8.9 38.3 27.2 22.8 53.6 57.6 -21.0 -3.5 58.1 51.1 111.8 44 Large time deposits 82^ 7.4 -11.4 26.7 40.8 85.4 16.9' -3.5' 137.0' 12.7' 111.9 39.8 45 Security RPs 9.8' 17.7 20.2 17.2 21.2 -13.1 27.9 26.5 7.0 23.3 31.6 27.5 46 Deposits in foreign countries -5.1 -2.1 5.9 -2.8 -12.1 2.5 -2.7 -5.9 -5.5 -34.4 25.5 5.1 47 Total of credit market instruments, deposits, and currency 492.5' 491.4 384.8 349.8 464.2 488.0 393.0' 467.2' ssi^ 414.7' 479.4 438.6 48 Public holdings as percent of total 2.1 2.4 3.7 3.8 3.1 35.7 38.0' 22.3 26.0 37.5 44.1 4.1 49 Private financial intermediation (in percent) 8.7' 7.8 10.4 9.0 8.3 93.2 105.9' 73.7' 60.6' 96.8' 86.4 74.1 50 Total foreign funds 66.7 82.0 110.7 106.4 111.7 96.8 108.1 177.0 4.9 156.7 90.9 -4.1 MEMO: Corporate equities not included above 51 Total net issues -36.0 20.1 90.5 14.3 -117.9 -90.4 -101.0 -133.7 -73.5 -163.5 -163.5 -48.7 57. Mutual fund shares 29.3 84.4 159.0 71.6 -.7 1.8 -9.5 -6.6 1.5 11.9 3.6 24.0 53 Other equities -65.3 -64.3 -68.5 -57.3 -117.2 -92.2 -91.5 -127.0 -75.0 -175.4 -167.1 -72.7 54 Acquisitions by financial institutions 15.8 45.6 53.7 21.4 5.4 -19.5 -34.4' .2' 25.5' 30.1' -6.5 -6.5 55 Other net purchases -51.8 -25.5 36.8 -7.1 -123.3 -70.9 -66.5' -m.y -99.1' -193.6' -157.0 -42.2 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 20Aine 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • January 1990 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1987 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998833 11998844 11998855 Q4 Ql Q2 Q3 Q4 Ql' Q2' Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 5,202.6 5,951.8 6,795.1 7,631.2 8,335.0 S^.O' 8,686.9' 8,875.4' 9,105.6' 9,258.7 9,428.4 By sector and instrument 2 U.S. government 1,177.9 1,376.8 1,600.4 1,815.4 1,960.3 2,003.2 2,022.3 2,063.9 2,117.8 2,155.7 2,165.7 3 Treasury securities 1,174.4 1,373.4 1,597.1 1,811.7 1,955.2 1,998.1 2,015.3 2,051.7 2,095.2 2,133.4 2,142.1 4 Agency issues and mortgages 3.6 3.4 3.3 3.6 5.2 5.0 7.0 12.2 22.6 22.3 23.6 5 Private domestic nonfinancial sectors 4,024.6 4,575.1 5,194.7 5,815.8 6,374.7 6,473.8r 6,664.7' 6,811.5' 6,987.8' 7,103.0 7,262.7 6 Debt capital instruments 2,715.1 3,038.0 3,485.5 3,957.5 4,428.0 4,511.0 4,652.6 4,782.0 4,902.1 4,979.2 5,078.3 / Tax-exempt obligations 469.0 520.0 655.5 679.1 713.2 718.1 727.2 746.1 759.8 764.7 769.3 8 Corporate bonds 423.0 469.2 542.9 664.2 764.1 793.8 829.8 858.8 885.0 912.9 947.5 9 Mortgages 1,823.1 2,048.8 2,287.1 2,614.2 2,950.7 2,999.1 3,095.7 3,177.2 3,257.3 3,301.6 3,361.6 10 Home mortgages 1,200.2 1,336.2 1,490.2 1,720.8 1,943.1 1,978.0 2,055.3 2,118.0 2,174.2 2,214.8 2,263.4 11 Multifamily residential 158.8 183.6 213.0 246.2 270.0 273.0 276.6 281.0 286.8 292.6 294.4 12 Commercial 350.4 416.5 478.1 551.4 648.7 660.2 676.0 691.1 709.6 708.2 717.0 13 Farm 113.7 112.4 105.9 95.8 88.9 88.0 87.8 87.0 86.8 86.0 86.7 14 Other debt instruments 1,309.5 1,537.1 1,709.3 1,858.4 1,946.7 l,962.8r 2,012.0' 2,029.4' 2,085.7r 2,123.8 2,184.3 15 Consumer credit 437.7 519.3 601.8 659.8 692.7 688.9 705.8 721.2 743.7 745.0 761.0 16 Bank loans n.e.c 491.1 553.1 592.7 656.1 664.3 668.3 687.2 687.7 702.6 717.6 729.8 1/ Open market paper 36.8 58.5 72.2 62.9 73.8 73.5 77.8 80.3 85.4 96.1 110.1 18 Other 344.0 406.2 442.6 479.6 516.0 532. r 541.2' 540.2' 554.0' 565.1 583.5 19 By borrowing sector 4,024.6 4,575.1 5,194.7 5,815.8 6,374.7 6,473.8' 6,664.7' 6,811.5' 6,987.8' 7,103.0 7,262.7 20 State and local governments 355.0 383.0 473.9 510.1 543.7 547.1 556.0 565.7 573.5 578.5 584.8 21 Households 1,791.6 2,018.2 2,295.5 2,591.8 2,864.5 2,900.7' 2,990.2' 3,068.3' 3,152.0' 3,205.6 3,265.5 22 Nonfinancial business 1,878.0 2,173.9 2,425.4 2,714.0 2,966.5 3,026.0 3,118.5 3,177.5 3,262.4' 3,319.0 3,412.3 23 Farm 188.4 187.9 173.4 156.6 145.5 141.3 143.9 143.6 137.6 135.9 139.5 24 Nonfarm noncorporate 645.8 769.0 898.3 1,001.6 1,109.4 1,131.7 1,151.9 1,172.6 1,205.3 1,229.1 1,245.9 23 Corporate 1,043.8 1,216.9 1,353.6 1,555.8 1,711.6 1,753.0 1,822.7 1,861.3 1,919.5' 1,954.0 2,027.0 26 Foreign credit market debt held in United States 225.9 233.6 234.7 236.4 242.9 244.6 245.9 246.1 249.6' 249.9 249.0 2277 Bonds 64.2 68.0 71.8 74.9 82.3 86.1 86.0 87.4 89.2 90.5 92.2 28 Bank loans n.e.c 37.4 30.8 27.9 26.9 23.3 22.8 22.4 22.7 21.5 21.6 22.7 29 Open market paper 21.5 27.7 33.9 37.4 41.2 42.5 44.0 46.3 50.9 54.9 52.7 30 U.S. government loans 102.8 107.1 101.1 97.1 96.1 93.1 93.5 89.8 88.1' 83.0 81.4 31 Total domestic plus foreign 5,428.5 6,185.4 7,029.9 7,867.6 8,578.0 8,721.6' 8,932.8' 9,121.5' 9,355.3' 9,508.7 9,677.4 Financial sectors 32 Total credit market debt owed by financial sectors 859.9 1,010.2 1,213.2 1,563.6 1,885.5 1,926.0 2,000.5 2,058.2 2,149.7 2,258.7 2,298.9 By instrument 33 U.S. government related 456.7 531.2 632.7 844.2 1,026.5 1,050.6 1,076.9 1,116.3 1,164.0 1,209.0 1,235.8 34 Sponsored credit agency securities 206.8 237.2 257.8 273.0 303.2 313.5 317.9 328.5 348.1 364.3 369.0 33 Mortgage pool securities 244.9 289.0 368.9 565.4 718.3 732.1 754.0 782.8 810.9 839.7 861.8 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 403.2 479.0 580.5 719.5 859.0 875.4 923.6 941.9 985.7 1,049.7 1,063.1 38 Corporate bonds 118.6 153.0 204.5 287.4 366.3 380.5 397.9 406.4 418.0 458.2 465.8 39 Mortgages 2.1 2.5 2.7 2.7 3.1 3.1 3.1 3.1 3.4 3.5 3.5 40 Bank loans n.e.c 28.1 29.5 32.1 36.1 32.8 31.7 34.3 32.9 34.2 32.2 33.8 41 Open market paper 195.5 219.5 252.4 284.6 323.8 330.6 353.4 358.0 377.4 392.0 398.3 42 Loans from Federal Home Loan Banks... 59.0 74.6 88.8 108.6 133.1 129.5 134.8 141.6 152.8 163.8 161.9 43 Total, by sector 859.9 1,010.2 1,213.2 1,563.6 1,885.5 1,926.0 2,000.5 2,058.2 2,149.7 2,258.7 2,298.9 44 Sponsored credit agencies 211.8 242.2 263.9 278.7 308.2 318.5 322.9 333.5 353.1 369.3 374.0 43 Mortgage pools 244.9 289.0 368.9 565.4 718.3 732.1 754.0 782.8 810.9 839.7 861.8 46 Private financial sectors 403.2 479.0 580.5 1 719.5 859.0 875.4 923.6 941.9 985.7 1,049.7 1,063.1 47 Commercial banks 76.8 84.1 79.2 75.6 82.7 76.4 77.2 76.6 78.8 73.3 74.5 48 Bank affiliates 73.5 89.5 106.2 116.8 131.1 131.0 136.3 136.3 136.2 140.0 141.2 49 Savings and loan associations 64.4 81.6 98.9 119.8 139.4 135.3 141.9 148.1 159.3 170.1 167.9 30 Mutual savings banks 1.7 2.9 4.4 8.6 16.7 17.1 17.6 18.1 18.6 17.8 17.7 31 Finance companies 179.0 203.0 261.2 328.1 378.8 393.0 419.8 427.7 445.8 463.8 478.0 32 REITs 3.5 4.3 5.6 6.5 7.3 8.7 9.1 7.6 11.4 11.1 10.6 33 SCO issuers 4.2 13.5 25.0 64.0 103.1 113.9 121.8 127.5 135.7 173.5 173.1 All sectors 54 Total credit market debt 6,288.3 7,195.7 8,243.1 9,431.2 10,463.4 10,647.5' 10,933.4' 11,179.7' 11,504.9' 11,767.4 11,976.3 55 U.S. government securities 1,629.4 1,902.8 2,227.0 2,653.8 2,981.8 3,048.8 3,094.2 3,175.2 3,276.7 3,359.7 3,396.5 56 State and local obligations 469.0 520.0 655.5 679.1 713.2 718.1 727.2 746.1 759.8 764.7 769.3 57 Corporate and foreign bonds 605.8 690.1 819.2 1,026.4 1,212.7 1,260.4 1,313.7 1,352.5 1,392.2 1,461.6 1,505.5 38 Mortgages 1,825.4 2,051.4 2,289.8 2,617.0 2,953.8 3,002.2 3,098.8 3,180.3 3,260.7 3,305.1 3,365.0 39 Consumer credit 437.7 519.3 601.8 659.8 692.7 688.9 705.8 721.2 743.7 745.0 761.0 60 Bank loans n.e.c 556.6 613.4 652.7 719.1 720.3 722.7 744.0 743.3 758.3 771.4 786.2 61 Open market paper 253.8 305.7 358.5 384.9 438.8 446.7 475.3 484.6 513.6 543.1 561.1 62 Other loans 510.7 592.9 638.6 691.1 750.2 759.7' 774.5' 776.6r 799.8' 816.8 831.7 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 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998833 11998844 11998855 11998866 Q4 Q1 Q2 Q3 Q4' Ql' Q2' 1 Total funds advanced in credit markets to domestic nonfinancial sectors 5,202.6 5,951.8 6,795.1 7,631.2 8,335.0 8,477.0R 8,686.9' 8,875.4' 9,105.6 9,258.7 9,428.4 By public agencies and foreign 2 Total held 1,100.4 1,257.7 1,460.5 1,794.7 2,044.9 2,099.4 2,151.3 2,191.8 2,266.4 2,332.1 2,345.1 3 U.S. government securities 339.0 377.9 423.8 493.2 563.3 595.7 610.1 613.3 648.3 666.2 644.6 4 Residential mortgages 367.0 423.5 518.2 712.3 862.0 880.6 906.1 934.9 966.0 995.3 1,020.5 5 FHLB advances to thrifts 59.0 74.6 88.8 108.6 133.1 129.5 134.8 141.6 152.8 163.8 161.9 6 Other loans and securities 335.4 381.6 429.7 480.5 486.6 493.6 500.3 502.1 499.3 506.9 518.1 7 Total held, by type of lender 1,100.4 1,257.7 1,460.5 1,794.7 2,044.9 2,099.4 2,151.3 2,191.8 2,266.4 2,332.1 2,345.1 8 U.S. government 211.4 228.2 246.7 253.3 238.0 237.1 235.8 226.3 216.9 213.9 215.2 9 Sponsored credit agencies and mortgage pools ... 482.0 556.3 659.8 869.8 1,048.9 1,068.0 1,095.6 1,132.9 1,178.6 1,223.5 1,228.9 10 Monetary authority 159.2 167.6 186.0 205.5 230.1 224.9 229.7 230.8 240.6 235.4 238.4 11 Foreign 247.7 305.6 367.9 466.1 527.9 569.5 590.2 601.9 630.3 659.3 662.6 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools ... 456.7 531.2 632.7 844.2 1,026.5 1,050.6 1,076.9 1,116.3 1,164.0 1,209.0 1,235.8 13 Foreign 225.9 233.6 234.7 236.4 242.9 244.6 245.9 246.1 249.6 249.9 249.0 Private domestic holdings 14 Total private holdings 4,784.8 5,458.9 6,202.1 6,917.1 7,559.5 7,672.7' 7,858.4' 8,045^ 8,252.8 8,385.5 8,568.1 15 U.S. government securities 1,290.4 1,524.9 1,803.2 2,160.6 2,418.5 2,453.1 2,484.1 2,561.9 2,628.4 2,693.5 2,751.9 16 State and local obligations 469.0 520.0 655.5 679.1 713.2 718.1 727.2 746.1 759.8 764.7 769.3 17 Corporate and foreign bonds 441.7 476.8 517.6 601.3 689.6 722.2 752.9 775.7 794.0 817.6 849.3 18 Residential mortgages 992.2 1,096.5 1,185.1 1,254.7 1,351.1 1,370.4 1,425.9 1,464.1 1,494.9 1,512.2 1,537.3 19 Other mortgages and loans 1,650.5 1,915.3 2,129.7 2,330.0 2,520.1 2,538.5' 2,603.3' 2,639.6' 2,728.4 2,761.3 2,822.2 20 LESS: Federal Home Loan Bank advances 59.0 74.6 88.8 108.6 133.1 129.5 134.8 141.6 152.8 163.8 161.9 Private financial intermediation 21 Credit market claims held by private financial institutions 4,115.0 4,699.6 5,283.1 6,025.7 6,604.6 6,732.0' 6,891.0' 7,003.5' 7,168.1 7,298.7 7,458.7 22 Commercial banking 1,622.5 1,791.9 1,978.9 2,176.3 2,313.1 2,327.1 2,382.6 2,421.6 2,468.4 2,490.9 2,538.2 23 Savings institutions 947.4 1,100.7 1,191.2 1,297.9 1,445.5 1,453.6 1,495.9' 1,538.8' 1,571.3 1,566.7 1,557.3 24 Insurance and pension funds 1,093.5 1,215.3 1,369.7 1,544.3 1,755.2 l,810.6r 1,859.0' 1,899.1' 1,950.2 1,996.7 2,046.5 25 Other finance 451.6 591.7 743.4 1,007.1 1,090.7 1,140.7 1,153.5 1,144.0 1,178.1 1,244.4 1,316.7 26 Sources of funds 4,115.0 4,699.6 5,283.1 6,025.7 6,604.6 6,732.0' 6,891.0' 7,003.5' 7,168.1 7,298.7 7,458.7 27 Private domestic deposits and RPs 2,393.2 2,715.6 2,930.0 3,188.4 3,324.8 3,404.2r 3,432.6' 3,474.2' 3,554.2 3,587.8 3,644.5 28 Credit market debt 403.2 479.0 580.5 719.5 859.0 875.4 923.6 941.9 985.7 1,049.7 1,063.1 29 Other sources 1,318.6 1,504.9 1,772.7 2,117.9 2,420.8 2,452.4' 2,534.8' 2,587.4' 2,628.1 2,661.1 2,751.0 30 Foreign funds -23.0 -14.1 5.6 18.6 62.2 45.9 62.3 51.9 71.6 61.9 51.0 31 Treasury balances 11.5 15.5 25.8 27.5 21.6 23.5 32.6 34.2 29.0 13.5 34.4 32 Insurance and pension reserves 1,036.1 1,160.8 1,289.4 1,427.9 1,597.2 1,647.9" 1,693.8' 1,729.2' 1,771.2 1,802.6 1,833.7 33 Other, net 294.1 342.6 451.8 643.9 739.6 735.2' 746.1' 772.1' 756.4 783.0 831.9 Private domestic nonfinancial investors 34 Credit market claims 1,073.0 1,238.4 1,499.5 1,610.8 1,813.9 1,816.1' 1,891.0' 1,984.4' 2,070.5 2,136.6 2,172.6 35 U.S. government securities 548.5 659.5 814.7 899.1 992.0 1,005.2' 1,022.1' 1,086.1' 1,143.5 1,175.0 1,196.3 36 Tax-exempt obligations 167.3 194.2 231.9 211.2 256.8 257.6' 270.1' 289.0' 303.7 307.2 308.2 37 Corporate and foreign bonds 37.2 33.1 38.0 77.8 102.2 97.7' 105.7' 107.1' 100.8 137.0 136.4 38 Open market paper 75.7 83.5 131.0 136.4 160.7 151.9' 179.9' 188.7' 201.0 213.0 221.7 39 Other 244.3 268.0 283.8 286.2 302.3 303.7' 313.3' 313.6' 321.5 304.3 309.9 40 Deposits and currency 2,569.8 2,895.8 3,120.4 3,399.2 3,553.9 3,628.0' 3,662.4' 3,704.4' 3,785.9 3,822.8 3,887.9 41 Currency 150.9 159.6 171.9 186.3 205.4 204.0 209.9 213.4 220.1 220.7 226.4 42 Checkable deposits 350.5 380.6 422.5 517.4 514.0 495.4' 510.3' 496.1' 525.4 492.8 496.4 43 Small time and savings accounts 1,542.9 1,693.4 1,831.9 1,948.3 2,017.1 2,084.9 2,110.9 2,131.1 2,150.4 2,164.7 2,186.7 44 Money market fund shares 169.5 218.5 227.3 265.6 292.8 318.4 306.1 303.6 315.6 340.3 359.9 45 Large time deposits 249.5 332.5 339.9 328.5 355.2 353.7' 349.1' 384.7' 396.0 415.9 423.1 46 Security RPs 80.8 90.6 108.3 128.5 145.7 151.9 156.2 158.6 166.9 174.1 178.4 47 Deposits in foreign countries 25.7 20.6 18.5 24.5 23.7 19.9 19.9 16.8 11.6 14.3 17.0 48 Total of credit market instruments, deposits, and currency 3,642.8 4,134.2 4,619.9 5,010.0 5,367.8 5,444.2' 5,553.5' 5,688.8' 5,856.4 5,959.4 6,060.4 49 Public holdings as percent of total 20.3 20.3 20.8 22.8 23.8' 24.1' 24.1' 24.C 24.2 24.5 24.2 50 Private financial intermediation (in percent) 86.0 86.1 85.2 87.1 87.4' 87.7' 87.7' 87.0' 86.9 87.0 87.1 51 Total foreign funds 224.7 291.5 373.5 484.7 590.2 615.3 652.5 653.8 701.9 721.2 713.6 MEMO: Corporate equities not included above 52 Total market value 2,133.7 2,157.9 2,823.9 3,360.6 3,325.0 3,504.0' 3,622.7' 3,577.6' 3,620.3 3,731.6 4,072.3 53 Mutual fund shares 112.1 136.7 240.2 413.5 460.1 479.2 486.8 478.1 478.3 486.3 514.8 54 Other equities 2,021.6 2,021.2 2,583.7 2,947.1 2,864.9 3,024.8' S.M.C 3,099.5' 3,142.0 3,245.3 3,557.5 55 Holdings by financial institutions 612.0 615.6 800.0 972.1 1,013.8 1,112.6' 1,170.0' 1,167.1' 1,200.4 1,277.7 1,395.7 56 Other holdings 1,521.7 1,542.3 2,023.9 2,388.4 2,311.2 2,391.3' 2,452.8' 2,410.5' 2,419.9 2,453.9 2,676.6 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 2Aine 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 • January 1990 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1989 MMeeaassuurree 11998866 11998877 11998888 Feb. Mar. Apr. May June July Aug. Sept.' Oct. 1 Industrial production 125.1 129.8 137.2 140.5 140.7 141.7 141.6 142.0 141.9r 142.4 142.4 141.4 Market groupings 2 Products, total 133.3 138.3 145.9 150.0 150.5 151.6 151.7 152.5 151.8' 152.3' 152.3 151.0 3 Final, total 132.5 136.8 144.3 148.6 148.9 150.2 150.4 151.2 150.2' 150^ 150.8 148.9 4 Consumer goods 124.0 127.7 133.9 138.7 138.4 139.5 139.2 139.9 138.7' 139.1' 138.9 138.5 5 Equipment 143.6 148.8 158.2 161.6 162.8 164.3 165.4 166.1 165.5' 166.5 166.5 162.7 6 Intermediate 136.2 143.3 151.5 155.1 156.1 156.5 156.3 157.0 157.5' 157.2' 157.7 158.2 7 Materials 113.8 118.3 125.3 127.4 127.3 128.2 127.9 127.7 128.3 m.y 128.9 128.2 Industry groupings 8 Manufacturing 129.1 134.6 142.8 146.8 147.0 148.0 148.1 148.7 148.5' 149.1 148.8 147.6 Capacity utilization (percent)2 9 Manufacturing 79.7 81.1 83.5 84.3 84.1 84.5 84.3 84.4 84.0' 84.1 83.7 82.8 10 Industrial materials industries 78.6 80.5 83.7 84.0 83.7 84.2 83.8 83.6 83.7 84.0' 83.8 83.2 11 Construction contracts (1982 = 100)3 158.3 163.8 160.8 148.0 150.0 163.0 159.0 157.0 163.0 160.0 175.0 165.0 12 Nonagricultural employment, total4 120.7 124.1 128.6 130.6 130.8 131.1 131.3 131.7 131.9 132.0 132.3 132.6 13 Goods-producing, total 100.9 101.8 105.0 105.3 105.4 105.5 105.5 105.4 105.4 105.5' 105.2 105.2 14 Manufacturing, total 96.3 96.8 99.2 99.8 100.0 99.9 99.9 99.8 99.8 99.8 99.3 99.3 15 Manufacturing, production- worker ... 91.1 91.9 94.3 95.0 95.1 95.0 95.0 94.8 94.8 94.8 94.2 94.1 16 Service-producing 129.0 133.4 138.5 141.2 141.5 141.8 142.2 142.7 143.0 143.1 143.6 144.0 17 Personal income, total 219.4 235.0 252.9 268.7 271.3 272.9 273.5 274.8 276.5' 277.4' 278.1 280.6 18 Wages and salary disbursements 210.8 226.3 244.4 257.3 259.5 261.7 262.0 263.8 266.1 266.7 268.5 271.8 19 Manufacturing 177.4 183.8 196.5 204.0 207.5 205.7 205.8 207.0 207.5 208.8 208.9 211.5 20 Disposable personal income5 218.5 232.4 252.1 268.1 270.3 269.6 271.7 273.8 275.4' 276.2 276.7 279.0 21 Retail sales 199.3 210.8 225.1 232.2 232.4 235.5 237.4 237.3 239.1 241.3' 243.0 240.6 Prices7 22 Consumer (1982-84 = 100) 109.6 113.6 118.3 121.6 122.3 123.1 123.8 124.1 124.4 124.6 125.0 125.6 23 Producer finished goods (1982 = 100) ... 103.2 105.4 108.0 111.7 112.1 113.0 114.2 114.3r 114.0 113.3 113.5 114.8 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 (July 7. Data without seasonal adjustment, as published in Monthly Labor Review. 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 Mar. Apr. May June July Aug/ Sept/ Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 182,822 185,010 186,837 188,102 188,228 188,377 188,518 188,672 188,808 188,948 189,096 2 Labor force (including Armed Forces)1 120,078 122,122 123,893 125,469 125,863 125,806 126,291 126,145 126,228 126,262 126,330 3 Civilian labor force 117,834 119,865 121,669 112233,,226644 112233,,665599 112233,,661100 112244,,110022 112233,,995566 112244,,001188 112244,,004400 112244,,110055 Employment 4 Nonagricultural industries2 106,434 109,232 111,800 113,930 114,009 114,102 114,445 114,240 114,290 114,199 114,327 5 Agriculture 3,163 3,208 3,169 3,206 33,,110044 33,,111122 3,096 33,,221199 33,,330077 33,,225577 33,,221177 Unemployment 6 Number 8,237 7,425 6,701 6,128 6,546 6,395 6,561 6,497 6,421 6,584 6,561 7 Rate (percent of civilian labor force) 7.0 6.2 5.5 5.0 5.3 5.2 5.3 5.2 5.2 5.3 5.3 8 Not in labor force 62,744 62,888 62,944 62,633 62,365 62,571 62,227 62,527 62,580 62,686 62,766 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 99,525 102,310 106,039 107,888 108,101 108,310 108,607 108,767 108,887 109,088 109,321 10 Manufacturing 18,965 19,065 19,536 19,680 19,672 19,667 19,650 19,649 19,644 19,556 19,543 11 Mining 777 721 733 714 720 722 715 706 729 730 732 12 Contract construction 4,816 4,998 5,294 5,252 5,279 5,283 5,283 5,314 5,321 5,321 5,329 13 Transportation and public utilities 5,255 5,385 5,584 5,666 5,682 5,700 5,716 5,736 5,618 5,711 5,738 14 Trade 23,683 24,381 25,362 25,685 25,695 25,750 25,781 25,823 25,877 25,893 25,923 15 Finance 6,283 6,549 6,679 6,774 6,776 6,790 6,808 6,815 6,836 6,851 6,852 16 Service 23,053 24,196 25,464 26,520 26,651 26,711 26,931 26,973 27,058 27,123 27,207 17 Government 16,693 17,015 17,387 17,597 17,626 17,687 17,723 17,751 17,804 17,903 17,997 1. Persons 16 years of age and over. Monthly figures, which are based on 3. Data include all full- and part-time employees who worked during, or sample data, relate to the calendar week that contains the 12th day; annual data received pay for, the pay period that includes the 12th day of the month, and are averages of monthly figures. By definition, seasonality does not exist in exclude proprietors, self-employed persons, domestic servants, unpaid family population figures. Based on data from Employment and Earnings (U.S. Depart- workers, and members of the Armed Forces. Data are adjusted to the March 1984 ment of Labor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • January 1990 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1988 1989 1988 1989 1988 1989 Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r Output (1977 = 100) Capacity (percent of 1977 output) Utilization rate (percent) 1 Total industry 139.9 140.7 141.8 142.2 166.3 167.5 168.7 169.9 84.1 84.0 84.1 83.7 2 Mining 104.2 101.8 102.0 103.2 125.7 125.1 124.7 124.3 82.9 81.3 81.8 83.1 3 Utilities 114.3 116.0 115.7 113.9 140.7 141.0 141.4 141.7 81.3 82.3 81.8 80.4 4 Manufacturing 145.8 147.0 148.3 148.8 172.8 174.3 175.7 177.2 84.4 84.4 84.4 83.9 5 Primary processing 127.7 127.8 127.6 128.8 145.2 146.5 147.8 149.1 87.9 87.3 86.4 86.4 6 Advanced processing 156.7 158.6 160.8 160.9 189.5 191.0 192.6 194.2 82.7 83.0 83.5 82.8 7 Materials 128.0 127.6 127.9 128.7 150.8 151.7 152.6 153.5 84.9 84.1 83.9 83.8 8 Durable goods 139.2 138.6 139.0 140.3 169.0 170.1 171.3 172.5 82.4 81.5 81.1 81.3 9 Metal materials 100.8 98.4 96.0 97.7 114.5 115.1 115.6 116.1 88.0 85.5 83.0 84.1 10 Nondurable goods 135.4 136.3 137.1 137.9 151.2 152.7 154.2 155.8 89.5 89.3 88.9 88.5 11 Textile, paper, and chemical 138.1 139.2 139.8 141.2 151.8 153.5 155.3 157.0 91.0 90.7 90.0 89.9 12 Paper 148.6 148.4 146.1 149.5 152.3 154.0 155.8 157.6 97.6 96.4 93.8 94.8 13 Chemical 144.1 145.4 145.7 146.8 159.3 161.4 163.7 165.9 90.5 90.1 89.0 88.5 14 Energy materials 102.0 100.7 100.7 100.4 118.7 118.4 118.3 118.1 86.0 85.0 85.1 84.9 Previous cycle2 Latest cycle3 1988 1989 High Low High Low Oct. Feb. Mar. Apr. May June Julyr Aug/ Sept/ Oct. Capacity utilization rate (percent) 15 Total industry 88.6 72.1 86.9 69.5 84.0 83.9 83.8 84.2 84.0 84.0 83.7 83.8 83.6 82.8 1 1 6 7 M Ut i i n li i t n ie g s .. . 9 95 2 . . 6 8 8 8 7 2 . . 8 9 9 8 5 8 . . 2 5 7 7 8 6 . . 0 9 8 81 1 . . 9 0 8 8 2 0 . . 6 6 8 81 3 . . 2 3 8 8 2 2 . . 9 0 8 8 1 1 . . 8 8 8 8 1 0 . . 5 8 8 82 0 . . 1 5 7 8 9 2 . . 9 7 8 8 0 4 . . 8 5 8 81 4 . .6 2 18 Manufacturing. 87.7 69.9 86.5 68.0 84.3 84.3 84.1 84.5 84.3 84.4 84.0 84.1 83.7 82.8 2 1 0 9 A Pr d im va a n r c y e d p r p o r c o e c s e s s i s n i g n . g . . . 9 8 1 6 . . 9 0 7 6 1 8 . . 1 3 8 8 5 9 . . 1 1 6 65 9 . . 0 5 8 87 2 . . 9 6 8 8 3 7 . . 0 0 8 86 3 . . 4 0 8 8 3 6 . . 5 8 8 86 3 . . 2 4 8 8 3 6 . . 5 2 8 86 2 . . 7 9 8 86 3 . . 6 0 8 8 2 6 . . 6 0 8 81 5 . .6 6 21 Materials. 92.0 70.5 89.1 68.5 84.7 84.0 83.7 84.2 83.8 83.6 83.7 84.0 83.8 83.2 2 2 2 2 2 3 4 5 D N u o T M r n a e d e b x u t t l a r e i l l a e g b m , o le a p o t a d e g p s r o e i o a r d l , s s a n . d . . 9 9 9 9 1 1 . . . 2 8 1 6 6 6 4 6 7 . . . 4 7 1 9 8 8 3 9 8 . . . 6 8 1 4 7 6 5 0 0 . . . 7 7 9 8 8 8 9 2 8 . . . 3 4 4 8 8 8 5 1 9 . . . 5 5 0 8 8 83 8 0 . . . 2 8 9 8 8 8 9 4 1 . . . 2 9 3 8 8 8 8 1 1 . . . 7 7 0 8 8 8 2 1 8 . . . 5 1 7 8 8 8 1 9 4 . . . 3 2 3 8 8 8 8 1 4 . . . 8 6 7 8 8 8 1 7 3 . . . 1 5 5 8 8 86 3 0 . . . 8 2 3 2 2 6 7 P C a h c p e h e m e r m ic i a c l a l 9 9 9 2 8 2 . . . 8 4 5 6 7 6 4 4 0 . . . 8 4 6 9 8 8 9 7 7 . . . 4 3 9 6 6 7 8 3 9 . . . 8 5 9 9 9 9 0 0 7 . . . 2 9 8 9 9 8 0 5 9 . . . 3 8 8 9 9 8 0 5 9 . . . 2 3 7 9 9 9 0 4 0 . . . 7 5 1 8 8 9 9 3 8 . . . 6 2 4 8 9 8 3 9 8 . . . 7 8 5 9 9 8 0 5 9 . . . 6 0 5 9 9 8 0 5 8 . . . 2 1 8 8 8 9 8 4 7 . . . 4 9 0 87.9 28 Energy materials. 94.6 86.9 94.0 82.3 85.3 84.9 85.4 86.0 85.5 83.8 83.9 84.5 86.4 86.6 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 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 GGrroouuppss por- avg. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July' Aug.' Sept." Oct.'' Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 137.2 139.4 139.9 140.4 140.8 140.5 140.7 141.7 141.6 142.0 141.9 142.4 142.4 141.4 1 Products 57.72 145.9 148.1 148.4 149.4 150.1 150.0 150.5 151.6 151.7 152.5 151.8 152.3 152.3 151.0 3 Final products 44.77 144.3 146.4 146.8 147.7 148.2 148.6 148.9 150.2 150.4 151.2 150.2 150.9 150.8 148.9 4 Consumer goods 25.52 133.9 136.4 136.8 138.2 138.5 138.7 138.4 139.5 139.2 139.9 138.7 139.1 138.9 138.5 5 Equipment 19.25 158.2 159.7 159.9 160.4 161.1 161.6 162.8 164.3 165.4 166.1 165.5 166.5 166.5 162.7 6 Intermediate products 12.94 151.5 154.0 154.2 155.0 156.6 155.1 156.1 156.5 156.3 157.0 157.5 157.2 157.7 158.2 7 Materials 42.28 125.3 127.5 128.3 128.3 128.1 127.4 127.3 128.2 127.9 127.7 128.3 128.9 128.9 128.2 Consumer goods 8 Durable consumer goods 6.89 125.4 129.3 129.2 131.9 131.5 131.6 130.1 132.2 131.2 130.8 127.3 128.9 128.0 124.9 9 Automotive products 2.98 125.1 128.9 129.5 134.5 132.5 131.6 128.9 131.7 128.6 125.6 120.2 122.2 120.9 117.3 10 Autos and trucks 1.79 123.0 128.3 129.5 138.0 135.6 133.1 128.3 131.7 127.4 123.3 114.6 119.4 117.1 111.6 11 Autos, consumer 1.16 93.7 101.3 101.0 105.1 99.6 96.0 95.0 98.8 96.0 91.4 81.2 86.4 92.7 91.5 17, Trucks, consumer .63 177.4 178.4 182.4 199.1 202.3 201.9 190.0 192.8 185.5 182.5 176.7 180.5 162.4 149.0 N Auto parts and allied goods 1.19 128.3 129.8 129.5 129.3 127.9 129.4 129.8 131.7 130.4 129.1 128.7 126.6 126.5 125.7 14 Home goods 3.91 125.6 129.7 128.9 130.0 130.7 131.6 131.1 132.6 133.3 134.8 132.7 133.9 133.4 130.7 IS Appliances, A/C and TV 1.24 144.1 154.4 150.4 151.0 151.0 153.9 151.6 151.7 151.3 155.6 148.1 153.8 154.6 148.1 16 Appliances and TV 1.19 143.5 151.9 148.9 150.0 149.5 153.0 152.3 152.5 151.4 155.0 147.0 151.7 150.7 17 Carpeting and furniture .96 136.2 138.8 139.8 140.5 141.1 141.3 140.7 142.8 144.3 143.1 141.3 140.1 139.1 18 Miscellaneous home goods 1.71 106.3 106.7 107.3 108.9 110.1 110.1 110.9 113.0 114.1 115.0 116.8 116.0 115.0 19 Nondurable consumer goods 18.63 137.0 139.0 139.7 140.5 141.1 141.4 141.4 142.2 142.1 143.3 142.8 142.9 143.0 143.6 7.0 Consumer staples 15.29 144.8 147.0 147.9 148.9 149.4 149.7 149.9 150.7 150.7 151.9 151.4 151.6 151.8 152.7 ?1 Consumer foods and tobacco 7.80 141.0 142.4 143.7 144.5 144.8 144.3 143.3 144.7 144.7 145.7 144.2 144.6 145.5 72 Nonfood staples 7.49 148.9 151.8 152.2 153.6 154.2 155.4 156.9 156.9 156.9 158.4 158.9 158.9 158.3 159.7 73 Consumer chemical products 2.75 179.8 186.1 185.7 186.8 187.6 187.8 188.9 187.3 189.1 191.0 193.1 193.6 189.7 74 Consumer paper products 1.88 163.3 167.1 167.8 169.0 174.2 177.0 180.4 180.9 180.9 183.6 183.0 183.8 185.1 75 Consumer energy 2.86 109.8 108.9 109.8 111.6 109.1 110.1 110.7 112.0 110.1 110.7 110.4 109.2 110.6 l'l'l. i 76 Consumer fuel 1.44 95.4 95.3 94.1 96.3 96.7 95.0 95.6 97.3 93.6 95.6 97.0 96.0 96.8 27 Residential utilities 1.42 124.5 122.7 125.8 127.1 121.7 125.4 126.1 127.0 127.0 126.1 124.0 122.7 Equipment 78 Business and defense equipment 18.01 163.3 165.1 165.5 166.2 167.1 167.9 168.9 170.3 171.5 172.0 171.3 172.2 172.0 168.0 79 Business equipment 14.34 157.6 160.2 161.2 162.6 163.8 165.0 166.3 167.8 169.1 169.6 168.5 169.7 169.4 165.9 30 Construction, mining, and farm 2.08 71.9 74.2 74.5 74.6 74.3 75.6 76.9 77.6 76.3 74.8 73.0 71.8 74.3 75.0 31 Manufacturing 3.27 131.3 136.2 136.2 137.0 136.3 137.8 138.6 139.7 140.9 142.8 143.8 143.5 142.6 142.4 3? Power 1.27 89.4 91.5 92.1 91.8 92.8 92.7 93.0 93.6 93.3 92.5 92.8 94.0 93.6 94.7 33 Commercial 5.22 245.0 245.4 247.0 248.9 252.4 254.3 257.6 260.1 263.2 264.5 263.8 265.2 265.4 262.3 34 Transit 2.49 115.4 120.3 122.3 124.9 125.7 125.2 123.9 124.8 125.3 124.8 120.1 124.4 121.8 107.0 35 Defense and space equipment 3.67 185.9 184.0 182.2 180.5 180.0 179.3 178.7 179.9 180.7 181.1 182.0 182.3 182.0 176.2 Intermediate products 36 Construction supplies 5.95 138.6 140.0 140.7 141.4 142.3 139.5 139.3 140.2 140.2 141.2 142.2 141.0 141.6 142.4 37 Business supplies 6.99 162.4 165.9 165.7 166.7 168.8 168.4 170.4 170.4 170.0 170.4 170.6 171.0 171.5 38 General business supplies 5.67 168.5 172.3 172.9 173.8 175.9 175.4 177.4 177.9 177.3 177.9 177.8 178.7 179.3 39 Commercial energy products 1.31 136.3 138.2 134.3 135.8 138.2 138.3 140.3 138.0 138.2 138.4 139.6 137.5 137.7 Materials 40 Durable goods materials 20.50 135.5 138.9 139.8 139.0 139.4 138.6 137.9 139.0 138.7 139.4 139.9 140.8 140.3 139.2 41 Durable consumer parts 4.92 109.0 111.4 113.9 112.5 111.7 112.1 110.7 110.8 111.8 111.6 109.9 111.9 110.7 107.6 47, Equipment parts 5.94 171.6 174.9 175.0 174.1 175.2 175.2 175.3 176.9 177.1 177.5 179.1 179.9 179.8 178.0 43 Durable materials n.e.c 9.64 126.8 130.8 131.3 130.9 131.5 129.7 128.8 130.0 128.9 130.0 131.0 131.4 131.1 131.4 44 Basic metal materials 4.64 96.1 101.1 101.4 99.8 100.8 98.4 95.9 98.0 94.4 95.5 97.7 98.3 97.1 96.9 45 Nondurable goods materials 10.09 132.0 134.7 135.1 136.3 137.1 135.9 136.0 137.1 136.8 137.3 138.5 138.3 136.9 136.2 46 Textile, paper, and chemical materials 7.53 134.4 137.4 137.9 139.1 139.9 138.6 139.0 140.3 139.1 140.0 141.8 141.7 140.2 139.1 47 Textile materials 1.52 110.0 109.5 110.1 110.0 112.1 110.7 111.8 114.6 116.4 117.2 116.4 116.4 116.5 48 Pulp and paper materials 1.55 147.3 148.4 147.2 150.3 150.4 147.5 147.3 146.7 145.2 146.5 149.1 149.9 149.4 49 Chemical materials 4.46 138.2 143.1 144.2 145.1 145.7 145.0 145.4 146.8 144.7 145.5 147.9 147.4 145.1 50 Miscellaneous nondurable materials ... 2.57 125.0 126.6 127.0 128.0 129.1 128.0 127.2 127.8 129.9 129.4 129.0 128.6 51 Energy materials 11.69 101.5 101.3 102.3 102.6 100.5 100.5 101.0 101.7 101.1 99.1 99.1 99.9 102.1 102.2 57 Primary energy 7.57 106.3 106.0 108.6 107.6 105.2 104.4 103.7 104.1 104.6 103.0 103.2 104.7 107.4 53 Converted fuel materials 4.12 92.7 92.6 90.7 93.3 92.0 93.3 96.1 97.4 94.7 92.0 91.6 91.0 92.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • January 1990 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1977 1988 Groups SIC propor- 1988 code avg. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July' Aug/ Sept.'' Oct. Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities . 15.79 107.5 107.2 108.1 108.9 107.2 106.8 107.5 107.9 107.2 106.3 106.6 106.7 108.5 108.8 2 Mining 9.83 103.5 103.1 104.7 104.9 103.0 100.9 101.5 102.4 102.0 101.5 102.1 102.7 104.8 104.9 3 Utilities 5.96 114.0 113.9 113.7 115.4 114.0 116.5 117.5 117.1 115.6 114.3 114.0 113.2 114.6 115.2 4 Manufacturing 84.21 142.8 145.3 145.8 146.3 147.2 146.8 147.0 148.0 148.1 148.7 148.5 149.1 148.8 147.6 5 Nondurable 35.11 143.9 146.3 146.7 147.1 148.5 148.1 148.6 149.6 149.5 150.5 150.8 150.9 150.8 151.0 6 Durable 49.10 142.0 144.6 145.2 145.7 146.2 145.9 145.8 146.9 147.1 147.4 146.8 147.7 147.3 145.1 Mining 7 Metal 10 .50 93.6 101.6 104.6 111.9 106.9 98.6 98.1 96.8 94.0 101.2 106.2 103.4 8 Coal 11.12 1.60 138.2 138.5 149.7 155.1 144.7 134.7 137.7 145.5 137.1 129.2 130.2 135.4 144.2 9 Oil and gas extraction 13 7.07 93.0 91.5 90.8 88.9 88.9 89.5 89.6 89.1 90.5 90.6 90.8 90.8 92.0 10 Stone and earth minerals . 14 .66 140.0 142.8 144.0 149.4 150.8 142.5 143.5 144.5 146.6 150.2 152.1 150.8 148.1 Nondurable manufactures 11 Foods 7.96 142.7 144.0 145.7 145.8 146.6 146.3 145.4 146.6 147.2 147.9 147.3 147.6 148.5 12 Tobacco products .62 105.4 105.4 102.4 107.0 105.0 104.7 101.5 109.2 105.9 104.2 97.1 13 Textile mill products 2.29 116.4 117.0 117.2 117.9 120.2 119.4 119.7 122.5 123.6 123.8 123.5 123^2 123 J 14 Apparel products 2.79 109.1 109.5 110.1 108.8 110.2 110.2 109.9 111.3 111.5 111.9 111.4 111.1 110.7 15 Paper and products 3.15 150.2 151.8 150.7 151.7 153.8 151.7 151.7 150.7 150.1 150.2 152.4 152.8 151.4 16 Printing and publishing 4.54 183.8 188.1 188.5 188.0 193.0 194.6 198.5 200.1 199.0 200.5 199.9 200.9 202.1 201.9 17 Chemicals and products 8.05 152.0 156.7 157.5 158.1 159.0 158.5 159.2 159.3 158.2 159.9 162.2 161.8 160.2 18 Petroleum products 2.40 96.0 96.3 95.0 98.0 98.0 96.3 97.0 97.3 96.9 97.9 98.3 97.8 98.5 19 Rubber and plastic products . 2.80 174.4 176.9 177.5 177.5 175.9 175.0 176.4 178.0 180.5 182.3 182.3 182.7 182.5 20 Leather and products .53 59.4 61.0 61.5 60.2 62.9 62.9 61.2 61.4 60.3 60.5 60.8 60.2 60.1 Durable manufactures 21 Lumber and products 24 2.30 137.6 137.5 139.4 143.0 139.9 132.8 133.4 135.1 135.5 137.2 136.9 135.9 136.4 22 Furniture and fixtures 25 1.27 162.0 164.5 165.4 165.4 166.3 164.8 165.8 168.0 170.2 170.8 169.0 167.5 167.1 23 Clay, glass, and stone products 32 2.72 122.6 123.3 124.7 125.1 126.6 125.4 125.5 124.7 123.9 123.9 122.9 124.2 124.1 24 Primary metals 33 5.33 89.4 94.2 92.7 90.0 93.2 91.1 88.4 90.1 87.2 87.3 89.2 90.2 89.4 25 Iron and steel 331.2 3.49 78.2 83.1 80.8 77.6 82.2 79.1 75.9 77.0 73.2 72.9 75.4 75.9 75.4 26 Fabricated metal products. 34 6.46 120.9 122.6 124.6 125.1 124.5 124.5 123.8 123.1 124.8 125.2 125.4 125.4 125.0 124.5 27 Nonelectrical machinery .. 35 9.54 170.7 173.8 175.4 177.8 178.7 180.8 183.0 184.7 186.5 187.5 186.7 187.3 188.0 186.8 28 Electrical machinery 36 7.15 180.1 183.0 182.2 180.9 180.9 181.7 181.6 182.2 181.6 181.9 181.4 183.8 183.3 181.2 29 Transportation equipment 37 9.13 132.2 134.8 135.2 136.8 136.7 136.4 134.8 136.4 135.5 134.2 131.3 133.2 131.6 122.9 30 Motor vehicles and parts 371 5.25 117.4 121.7 122.9 125.5 124.9 123.4 120.4 122.0 119.7 116.4 110.4 114.2 112.7 109.0 31 Aerospace and miscellaneous transportation equipment. 372-6.9 3.87 152.4 152.7 151.9 152.2 152.7 154.0 154.4 155.9 157.1 158.4 159.6 159.0 157.3 141.8 32 Instruments 38 2.66 154.4 159.9 160.4 159.1 161.0 161.3 161.8 163.0 164.3 165.7 166.0 164.5 164.2 164.2 33 Miscellaneous manufactures .... 39 1.46 107.1 106.5r 108.4' 111.0r 111.8' 107.6' 110.0' 114.5r 114.7r 117.1' 119.6 117.4 116.6 Utilities 34 Electric . Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 517.5 1,824.5 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 1,878.9 36 Final 405.7 1,401.2 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 1,441.4 37 Consumer goods 272.7 902.4 915.0 918.4 934.4 935.6 934.3 928.0 939.4 928.5 928.0 917.4 917.9 921.6 38 Equipment 133.0 498.8 508.4 507.9 507.7 511.9 515.2 514.8 521.1 521.1 520.8 516.0 519.4 519.8 39 Intermediate 111.9 423.3 430.5 429.3 433.2 437.7 429.6 435.3 433.5 435.9 435.6 437.4 437.1 437.5 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 (July A major revision of the industrial production index and the capacity 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 Dec. Jan. Feb. Mar. Apr. May June July' Aug/ Sept. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,750 1,535 1,456 1,518 1,486 1,403 1,230 1,334 1,347 1,308 1,281 1,328 1,319 2 1-family 1,071 1,024 994 1,058 1,052 989 870 954 905 874 906 927 946 3 2-or-more-family 679 511 462 460 434 414 360 380 442 434 375 401 373 4 Started 1,805 1,621 1,488 1,577 1,678 1,465 1,409 1,343 1,308 1,406 1,420 1,329 1,268 5 1-family 1,180 1,146 1,081 1,141 1,199 1,029 981 1,029 977 972 1,026 990 961 6 2-or-more-family 626 474 407 436 479 436 428 314 331 434 394 339 307 7 Under construction, end of period1 . 1,074 987 919 956 957 951 942 924 911 914 918 903 900 8 1-family 583 591 570 603 602 594 586 579 572 572 576 568 569 9 2-or-more-family 490 397 350 353 355 357 356 345 339 342 342 335 331 10 Completed 1,756 1,669 1,530 1,539 1,537 1,610 1,459 1,552 1,442 l,355r 1,372 1,429 1,296 11 1-family 1,120 1,123 1,085 1,108 1,141 1,189 1,050 1,115 1,041 964r 965 1,031 937 12 2-or-more-family 636 546 445 431 396 421 409 437 401 391r 407 398 359 13 Mobile homes shipped 244 233 218 225 232 212 207 198 205 202 178 194 185 Merchant builder activity in 1-family units 14 Number sold 748 672 675 669 700 621 555 607 653 647r 742 719 618 15 Number for sale, end of period1 .... 357 365 366 366 369 375 377 377 380 377 370 367 367 Price (thousands of dollars)2 Median 16 Units sold 92.2 104.7 113.3 121.0 113.0 118.0 123.0 116.7 119.0 122.8'' 117.0 122.2 122.5 Average 17 Units sold 112.2 127.9 139.0 147.7 138.6 145.3 149.0 144.7 145.1 153.6r 141.8 161.3 154.4 EXISTING UNITS (1-family) 18 Number sold 3,566 3,530 3,594 3,920 3,550 3,480 3,400 3,400 3,210 3,360 3,330 3,480 3,520 Price of units sold (thousands of dollars) 19 Median 80.3 85.6 89.2 88.7 89.7 91.9 92.0 92.9 92.6 93.4 96.7 94.8 94.3 20 Average 98.3 106.2 112.5 112.0 113.0 117.8 116.1 118.0 118.0 118.8 122.1 120.8 118.4 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 387,043 397,721 409,663 425,035 424,791 418,465 419,152 414,834 420,410 416,928 409,601 415,849 415,615 22 Private 315,313 320,108 328,738 336,254 339,481 335,037 340,438 335,480 334,462 333,440 328,046 331,472 327,592 23 Residential 187,147 194,656 198,101 202,480 204,707 202,322 204,456 203,678 200,854 198,635 194,257 193,598 191,940 24 Nonresidential, total 128,166 125,452 130,637 133,774 134,774 132,715 135,982 131,802 133,608 134,805 133,789 137,874 135,652 Buildings 25 Industrial 13,747 13,707 14,931 15,045 15,890 15,098 15,698 16,245 15,945 16,302 16,390 17,460 17,601 26 Commercial 56,762 55,448 58,104 58,659 59,350 58,749 60,653 55,581 56,796 57,434 56,499 57,812 55,662 27 Other 13,216 15,464 17,278 17,744 17,976 17,484 17,634 16,645 17,343 17,179 16,792 18,360 17,771 28 Public utilities and other 44,441 40,833 40,324 42,326 41,558 41,384 41,997 43,331 43,524 43,890 44,108 44,242 44,618 29 Public 71,727 77,612 80,922 88,781 85,310 83,428 78,714 80,420 85,130 81,914 81,555 84,377 88,023 30 Military 3,868 4,327 3,579 3,905 3,440 3,433 3,740 2,054 3,870 4,324 3,264 3,689 4,242 31 Highway 22,971 25,343 28,524 33,674 30,792 27,936 26,091 27,772 27,432 27,321 26,128 27,367 27,936 32 Conservation and development... 4,646 5,162 4,474 4,412 4,121 4,742 4,210 3,068 6,053 4,699 4,535 4,643 4,679 33 Other 40,242 42,780 44,345 46,790 46,957 47,317 44,673 47,526 47,775 45,570 47,628 48,678 51,166 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (1) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices comparable with data in previous periods because of changes by the Bureau of the of existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from the originating agency. Permit Construction Reports (C-30-76-5), issued by the Bureau in July 1976. authorizations are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • January 1990 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change from 12 Change from 3 months earlier months earlier (at annual rate) Change from 1 month earlier IIInnndddeeexxx IIIttteeemmm llleeevvveeelll 1988 1989 1989 OOOcccttt... 11998888 11998899 111999888999''' OOcctt.. OOcctt.. Dec. Mar. Juner Sept/ June' July' Aug. Sept. Oct. CONSUMER PRICES (1982-84=100) 1 All items 4.2 4.5 4.1 6.1 5.7 1.6 .2 .2 .0 .2 .5 125.6 2 Food 5.2 5.2 3.0 8.2 5.6 2.9 .2 .3 .2 .2 .4 126.5 3 Energy items .1 5.2 -.4 10.2 24.8 -13.4 -1.0 -.7 -2.0 -.9 .6 94.6 4 All items less food and energy 4.5 4.3 4.9 5.2 3.8 3.1 .2 .4 .2 .2 .5 130.9 5 Commodities 3.8 2.7 4.2 4.1 2.0 .7 -.1 .1 -.3 .4 .6 121.2 6 Services 4.8 5.1 5.4 5.9 4.3 4.5 .4 .6 .3 .2 .4 136.5 PRODUCER PRICES (1982=100) 7 Finished goods 3.0 4.9 3.0 10.2 5.8 -.3 .1 -.6 -.4 .9 .4 114.8 8 Consumer foods 4.5 4.3 2.1 13.1 -1.3 -1.3 -.6 -.1 .3 -.6 1.4 119.5 9 Consumer energy -5.9 11.9 1.4 41.0 31.8 -16.8 -2.7 -3.2 -7.3 6.5 .2 65.7 10 Other consumer goods 4.2 4.6 4.4 5.4 5.7 2.6 .8 -.4 .5 .6 .2 126.0 11 Capital equipment 3.1 3.7 1.7 4.6 4.5 4.8 .5 -.1 .3 1.0 -.3 120.3 12 Intermediate materials3 4.9 3.7 4.5 8.7 2.9 -1.1 -.1 -.4 -.3 .4 .1 112.3 13 Excluding energy 7.0 2.6 6.7 5.5 .3 -.7 -.2 -.2 -.1 .1 .1 120.3 Crude materials 14 Foods 16.4 -4.2 -7.9 16.9 -17.8 -2.2 -2.1 -1.4 1.7 -.8 -.6 107.2 15 Energy -16.0 21.0 12.3 48.3 23.6 -6.5 -1.0 1.8 -6.7 3.5 .5 76.6 16 Other 5.5 3.0 12.5 10.3 -9.3 -.6 -1.5 -1.6 1.2 .3 .3 137.4 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures 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 Q3 Q4 Ql Q2 Q3r GROSS NATIONAL PRODUCT 1 Total 4,231.6 4,524.3 4,880.6 4,926.9 5,017.3 5,113.1 5,201.7 5,278.9 By source 2 Personal consumption expenditures 2,797.4 3,010.8 3,235.1 3,263.4 3,324.0 3,381.4 3,444.1 3,513.2 3 Durable goods 406.0 421.0 455.2 452.5 467.4 466.4 471.0 488.5 4 Nondurable goods 942.0 998.1 1,052.3 1,066.2 1,078.4 1,098.3 1,121.5 1,133.7 5 Services 1,449.5 1,591.7 1,727.6 1,744.7 1,778.2 1,816.7 1,851.7 1,891.0 6 Gross private domestic investment 659.4 699.9 750.3 771.1 752.8 769.6 775.0 779.0 7 Fixed investment 652.5 670.6 719.6 726.5 734.1 742.0 747.6 752.1 8 Nonresidential 435.2 444.3 487.2 493.2 495.8 503.1 512.5 519.3 9 Structures 139.0 133.8 140.3 142.0 142.5 144.7 142.4 145.5 10 Producers' durable equipment 296.2 310.5 346.8 351.3 353.3 358.5 370.1 373.8 11 Residential structures 217.3 226.4 232.4 233.2 238.4 238.8 235.1 232.8 12 Change in business inventories 6.9 29.3 30.6 44.6 18.7 27.7 27.4 26.9 13 Nonfarm 8.6 30.5 34.2 41.5 40.8 19.1 23.6 19.0 14 Net exports of goods and services -97.4 -112.6 -73.7 -66.2 -70.8 -54.0 -50.6 -53.5 15 Exports 396.5 448.6 547.7 556.8 579.7 605.6 626.1 623.3 16 Imports 493.8 561.2 621.3 623.0 650.5 659.6 676.6 676.8 17 Government purchases of goods and services 872.2 926.1 968.9 958.6 1,011.4 1,016.0 1,033.2 1,040.2 18 Federal 366.5 381.6 381.3 367.5 406.4 399.0 406.0 403.3 19 State and local 505.7 544.5 587.6 591.0 604.9 617.0 627.2 636.8 By major type of product 20 Final sales, total 4,224.8 4,495.0 4,850.0 4,882.3 4,998.7 5,085.4 5,174.3 55,,225522..00 21 Goods 1,686.7 1,785.2 1,931.9 1,955.8 1,987.4 2,030.9 2,079.1 2,105.0 22 Durable 724.2 777.6 863.6 884.0 888.5 894.7 905.2 935.1 23 Nondurable 962.5 1,007.6 1,068.3 1,071.8 1,098.9 1,136.2 1,173.9 1,169.9 24 Services 2,119.3 2,304.5 2,499.2 2,520.3 2,570.0 2,620.8 2,667.5 2,716.8 25 Structures 425.6 434.6 449.5 450.8 459.9 461.3 455.1 457.1 26 Change in business inventories 6.9 29.3 30.6 44.6 18.7 27.7 27.4 26.9 27 Durable goods 1.2 22.0 25.0 41.4 32.0 22.0 6.0 3.8 28 Nondurable goods 5.6 7.2 5.6 3.2 -13.3 5.7 21.4 23.1 MEMO 29 Total GNP in 1982 dollars 3,717.9 3,853.7 4,024.4 4,042.7 4,069.4 4,106.8 4,132.5 4,160.2 NATIONAL INCOME 30 3,412.6 3,665.4 3,972.6 4,005.7 4,097.4 4,185.2 4,249.6 4,284.0 31 Compensation of employees 2,511.4 2,690.0 2,907.6 2,935.1 2,997.2 3,061.7 3,118.2 3,171.9 32 Wages and salaries 2,094.8 2,249.4 2,429.0 2,452.2 2,505.1 2,560.7 2,608.8 2,654.7 33 Government and government enterprises 393.7 419.2 446.5 449.6 456.3 466.9 473.5 480.2 34 Other 1,701.1 1,830.1 1,982.5 2,002.6 2,048.9 2,093.8 2,135.3 2,174.5 35 Supplement to wages and salaries 416.6 440.7 478.6 482.9 492.0 501.0 509.4 517.2 36 Employer contributions for social insurance 217.3 227.8 249.7 251.8 255.6 259.7 263.4 266.6 37 Other labor income 199.3 212.8 228.9 231.1 236.5 241.3 246.0 250.7 38 Proprietors' income1 282.0 311.6 327.8 327.0 328.3 359.3 355.5 343.6 39 Business and professional 247.2 270.0 288.0 289.3 296.3 300.3 304.2 307.3 40 Farm1 34.7 41.6 39.8 37.7 32.0 59.0 51.3 36.3 41 Rental income of persons2 11.6 13.4 15.7 16.3 16.1 11.8 9.8 5.2 42 Corporate profits1 282.1 298.7 328.6 330.9 340.2 316.3 307.8 292.3 43 Profits before tax3 221.6 266.7 306.8 314.4 318.8 318.0 296.0 272.0 44 Inventory valuation adjustment 6.7 -18.9 -25.0 -30.4 -20.1 -38.3 -20.7 -6.0 45 Capital consumption adjustment 53.8 50.9 46.8 46.9 41.5 36.6 32.3 26.3 46 Net interest 325.5 351.7 392.9 396.4 415.7 436.1 458.4 471.0 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 Domestic Nonfinancial Statistics • January 1990 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 11998888 Q3 Q4 Ql Q2 Q3' PERSONAL INCOME AND SAVING 1 Total personal income 3,526.2 3,777.6 4,064.5 4,097.6 4,185.2 4,317.8 4,400.3 4,457.5 2 Wage and salary disbursements 2,094.8 2,249.4 2,429.0 2,452.2 2,505.1 2,560.7 2,608.8 2,654.7 3 Commodity-producing industries 625.6 649.9 696.3 701.6 714.7 726.6 733.7 742.8 4 Manufacturing 473.2 490.3 524.0 527.2 538.1 546.3 549.9 555.8 5 Distributive industries 498.8 531.9 571.9 578.0 587.5 598.8 610.8 619.5 6 Service industries 576.7 648.3 714.4 723.0 746.7 768.4 790.8 812.2 7 Government and government enterprises 393.7 419.2 446.5 449.6 456.3 466.9 473.5 480.2 8 Other labor income 199.3 212.8 228.9 231.1 236.5 241.3 246.0 250.7 9 Proprietors' income 282.0 311.6 327.8 327.0 328.3 359.3 355.5 343.6 10 Business and professional 247.2 270.0 288.0 289.3 296.3 300.3 304.2 307.3 11 Farm1 34.7 41.6 39.8 37.7 32.0 59.0 51.3 36.3 12 Rental income of persons2 11.6 13.4 15.7 16.3 16.1 11.8 9.8 5.2 13 Dividends 85.8 92.0 102.2 103.6 106.4 109.4 111.4 113.2 14 Personal interest income 493.2 523.2 571.1 576.3 598.6 629.0 655.1 669.2 15 Transfer payments 521.5 548.2 584.7 587.4 593.8 616.4 626.8 636.4 16 Old-age survivors, disability, and health insurance benefits ... 269.2 282.9 300.5 301.4 304.0 316.9 322.9 328.0 17 LESS: Personal contributions for social insurance 161.9 172.9 194.9 196.4 199.6 210.0 213.0 215.4 18 EQUALS: Personal income 3,526.2 3,777.6 4,064.5 4,097.6 4,185.2 4,317.8 4,400.3 4,457.5 19 LESS: Personal tax and nontax payments 512.9 571.7 586.6 585.9 597.8 628.3 652.6 649.1 20 EQUALS: Disposable personal income 3,013.3 3,205.9 3,477.8 3,511.7 3,587.4 3,689.5 3,747.7 3,808.4 21 LESS: Personal outlays 2,888.5 3,104.1 3,333.1 3,362.1 3,424.0 3,483.8 3,547.0 3,617.3 22 EQUALS: Personal saving 124.9 101.8 144.7 149.6 163.4 205.7 200.7 191.1 MEMO Per capita (1982 dollars) 23 Gross national product 15,385.5 15,793.9' 16,332.8 16,387.1 16,455.3 16,566.4 1166,,662299..88 1166,,770000..99 24 Personal consumption expenditures 10,123.7 10,302.0 10,545.5 10,572.0 10,625.6 10,653.5 10,678.9 10,815.3 25 Disposable personal income 10,905.0 10,970.0 11,337.0 11,377.0 11,466.0 11,625.0 11,622.0 11,723.0 26 Saving rate (percent) 4.1 3.2 4.2 4.3 4.6 5.6 5.4 5.0 GROSS SAVING 27 Gross saving 525.3 553.8 642.4 669.8 647.4 693.5 695.8 700.3 28 Gross private saving 669.5 663.8 738.6 742.4 769.3 792.1 793.7 803.3 29 Personal saving 124.9 101.8 144.7 149.6 163.4 205.7 200.7 191.1 30 Undistributed corporate profits 84.5 75.3 80.3 77.6 81.7 53.4 52.0 46.6 31 Corporate inventory valuation adjustment 6.7 -18.9 -25.0 -30.4 -20.1 -38.3 -20.7 -6.0 Capital consumption allowances 285.9 303.1 321.7 332233..11 332299..77 333355..22 333399..77 335500..22 33 Noncorporate 174.2 183.6 191.9 192.1 194.4 197.8 201.3 215.4 34 Government surplus, or deficit (-), national income and product accounts -144.1 -110.1 -96.1 -72.7 -121.9 -98.7 --9977..99 --110033..00 35 Federal -206.9 -161.4 -145.8 -122.5 -167.6 -147.5 -145.4 -147.4 36 State and local 62.8 51.3 49.7 49.8 45.7 48.8 47.5 44.3 37 Gross investment 523.6 549.0 632.8 661.2 630.8 669.3 677.5 677.4 38 Gross private domestic 659.4 699.9 750.3 771.1 752.8 769.6 775.0 779.0 39 Net foreign -135.8 -150.9 -117.5 -109.9 -122.0 -100.3 -97.5 -101.6 40 Statistical discrepancy -1.8 -4.7 -9.6 | -8.6 -16.6 -24.1 -18.3 -22.9 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1988 1989 Item credits or debits 11998866 11998877 11998888 Q2 Q3 Q4 Q1 Q2 -133,249 -143,700 -126,548 -33,485 -32,340 -28,677 -30,390 -30,988 Not seasonally adjusted -33,875 -36,926 -28,191 -25,994 -30,779 Merchandise trade balance -145,058 -159,500 -127,215 -31,411 -30,339 -32,019 -28,378 -27,718 Merchandise exports 223,367 250,266 319,251 78,471 80,604 83,729 87,919 90,866 Merchandise imports -368,425 -409,766 -446,466 -109,882 -110,943 -115,748 -116,297 -118,584 Military transactions, net -4,577 -2,856 -4,606 -1,033 -1,006 -1,604 -1,498 -1,630 Investment income, net 60,629 71,151 61,974 11,536 12,806 21,329 15,527 14,422 Other service transactions, net 10,517 10,585 17,702 4,323 4,971 5,475 5,428 6,469 Remittances, pensions, and other transfers . -4,049 -4,063 -4,279 -971 -1,088 -1,090 -1,186 -952 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 2,271 -4,000 -12,095 13 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, -). -97,953 -86,363 -81,544 -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 Nonbank-reported claims -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 -26,311 -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 25 Other U.S. government liabilities 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 assets -884 -1,007 -2,495 -417 -508 -737 452 587 28 Change in foreign private assets in United States (increase, +) < 186,011 172,847 180,417 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 U.S. nonbank-reported liabilities -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 58,435 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 Owing to seasonal adjustments -3,714 -4,556 4,431 4,127 -2,340 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 2,271 -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 14 1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and 4. Primarily associated with military sales contracts and other transactions 38-41. arranged with or through foreign official agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing. Military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE. Data are from Bureau of Economic Analysis, Survey of Current 3. Reporting banks include all kinds of depository institutions besides commer- Business (Department of Commerce). cial banks, as well as some brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • January 1990 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1989 IItteemm 11998866 11998877 11998888 Mar. Apr. May June July Aug/ Sept.'' 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 227,158 254,073 322,426 30,065 30,759 30,455 31,286 30,468 30,562 31,136 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 365,438 406,241 440,952 39,549 39,045 40,534 39,293 38,709 40,662 39,079 Trade balance 3 Customs value -138,279 -152,169 -118,526 -9,485 -8,286 -10,079 -8,007 -8,241 -10,101 -7,943 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 Type 1986 1987 Apr. May June July Aug. Sept. Oct. 1 Total 43,186 48,511 45,798 50,303 54,941 60,502 63,462 62,364 68,418 70,809 2 Gold stock, including Exchange 11,090 11,064 11,078 11,061 11,060 11,063 11,066 11,066 11,065 11,062 Stabilization Fund 7,293 8,395 10,283 9,379 9,134 9,034 9,340 9,240 9,487 9,473 3 Special drawing rights2,3 4 ReseMrvoen peotasriyti oFnu nind International 11,947 11,730 11,349 9,132 8,513 9,055 8,644 8,786 8,722 5 Foreign currencies4 12,856 17,322 13,088 20,731 26,234 31,517 34,001 33,413 39,080 41,552 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 Apr. May June July Aug. Sept. Oct.P 1 Deposits 287 244 347 352 428 275 371 265 325 252 Assets held in custody 2 U.S. Treasury securities2 155,835 195,126 232,547 235,145 232,004 229,914 233,170 238,007 235,597 230,804 3 Earmarked gold 14,048 13,919 13,636 13,576 13,612 13,545 13,530 13,516 13,506 13,460 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 11998877 11998888 Mar. Apr. May June July Aug. Sept. All foreign countries 1 Total, all currencies 456,628 518,618 506,062 519,740 517,276 521,436 523,674 534,200 522,550r 521,291 2 Claims on United States 114,563 138,034 169,111 177,902 171,136 177,987 177,445 179,615 177,298' 182,405 3 Parent bank 83,492 105,845 129,856 134,002 128,567 134,026 132,380 133,135 134,478r 142,304 4 Other banks in United States 13,685 16,416 14,918 14,697 13,459 13,040 14,218 15,744 15,225 14,164 5 Nonbanks 17,386 15,773 24,337 29,203 29,110 30,921 30,847 30,736 27,595 25,937 6 Claims on foreigners 312,955 342,520 299,728 303,906 305,483 302,808 303,720 310,426 299,094r 290,002 7 Other branches of parent bank 96,281 122,155 107,179 110,434 113,824 116,506 115,913 117,438 108,91c 104,657 8 Banks 105,237 108,859 96,932 97,723 %,830 94,042 94,902 95,621 92,267 90,393 9 Public borrowers 23,706 21,832 17,163 17,020 16,101 16,095 16,709 16,948 16,660 16,376 10 Nonbank foreigners 87,731 89,674 78,454 78,729 78,728 76,165 76,1% 80,419 81,257 78,576 11 Other assets 29,110 38,064 37,223 37,932 40,657 40,641 42,509 44,159 46,158 48,884 12 Total payable in U.S. dollars 317,487 350,107 358,040 366,403 359,841 366,315 367,562 371,851 369,689r 360,535 13 Claims on United States 110,620 132,023 163,456 170,091 163,964 169,7% 169,520 171,041 170,497r 174,593 14 Parent bank 82,082 103,251 126,929 129,431 124,268 128,771 127,352 128,063 130,168r 137,446 15 Other banks in United States 12,830 14,657 14,167 13,259 12,539 11,909 13,207 14,734 14,688 13,217 16 Nonbanks 15,708 14,115 22,360 27,401 27,157 29,116 28, %1 28,244 25,641 23,930 17 Claims on foreigners 195,063 202,428 177,685 178,134 178,298 177,308 180,013 181,441 177,717r 164,448 18 Other branches of parent bank 72,197 88,284 80,736 82,797 86,767 86,625 88,874 90,077 83,039' 77,852 19 Banks 66,421 63,707 54,884 53,893 50,815 49,793 50,627 49,913 50,685 46,779 20 Public borrowers 16,708 14,730 12,131 11,831 11,467 11,282 11,815 11,616 11,776 11,646 21 Nonbank foreigners 39,737 35,707 29,934 29,613 29,249 29,608 28,697 29,835 32,217 28,171 22 Other assets 11,804 15,656 16,899 18,178 17,579 19,211 18,029 19,369 21,475 21,494 United Kingdom 23 Total, all currencies 140,917 158,695 156,835 154,856 153,146 155,532 153,968 161,882 158,869 158,328 24 Claims on United States 24,599 32,518 40,089 40,715 39,475 39,599 38,014 42,147 41,914 40,085 25 Parent bank 19,085 27,350 34,243 35,315 34,741 35,642 33,763 37,713 38,031 36,046 26 Other banks in United States 1,612 1,259 1,123 1,380 1,227 1,243 1,125 1,121 1,112 1,265 27 Nonbanks 3,902 3,909 4,723 4,020 3,507 2,714 3,126 3,313 2,771 2,774 28 Claims on foreigners 109,508 115,700 106,388 103,443 102,438 104,504 103,773 106,586 102,015 102,093 29 Other branches of parent bank 33,422 39,903 35,625 35,305 32,954 35,537 34,948 35,440 32,392 32,607 30 Banks 39,468 36,735 36,765 35,382 37,079 37,412 37,357 36,519 35,857 37,146 31 Public borrowers 4,990 4,752 4,019 3,757 3,471 3,627 3,599 3,788 3,586 3,265 32 Nonbank foreigners 31,628 34,310 29,979 28,999 28,934 27,928 27,869 30,839 30,180 29,075 33 Other assets 6,810 10,477 10,358 10,698 11,233 11,429 12,181 13,149 14,940 16,150 34 Total payable in U.S. dollars 95,028 100,574 103,503 103,211 98,463 101,612 99,028 103,512 104,416 99,893 35 Claims on United States 23,193 30,439 38,012 38,265 36,772 36,675 34,990 38,506 39,135 37,108 36 Parent bank 18,526 26,304 33,252 34,320 33,499 34,119 32,059 36,041 36,375 34,537 37 Other banks in United States 1,475 1,044 964 937 872 862 844 821 1,007 1,017 38 Nonbanks 3,192 3,091 3,7% 3,008 2,401 1,694 2,087 1,644 1,753 1,554 39 Claims on foreigners 68,138 64,560 60,472 59,201 56,227 58,395 58,746 59,137 57,490 55,336 40 Other branches of parent bank 26,361 28,635 28,474 28,145 25,389 26,036 26,541 27,955 25,368 25,538 41 Banks 23,251 19,188 18,494 17,715 17,680 18,458 18,745 17,080 18,082 17,612 42 Public borrowers 3,677 3,313 2,840 2,786 2,6% 2,737 2,606 2,702 2,679 2,521 43 Nonbank foreigners 14,849 13,424 10,664 10,555 10,462 11,164 10,854 11,400 11,361 9,665 44 Other assets 3,697 5,575 5,019 5,745 5,464 6,542 5,292 5,869 7,791 7,449 Bahamas and Caymans 45 Total, all currencies 142,592 160,321 170,639 179,185 172,324 173,137 171,780 172,789 165,401 164,684 46 Claims on United States 78,048 85,318 105,320 111,951 105,273 111,823 109,800 107,831 106,693 111,043 47 Parent bank 54,575 60,048 73,409 75,234 68,%9 73,627 70,735 67,417 69,404 76,426 48 Other banks in United States 11,156 14,277 13,145 12,275 11,563 10,807 12,116 13,712 13,294 12,141 49 Nonbanks 12,317 10,993 18,766 24,442 24,741 27,389 26,949 26,702 23,995 22,476 50 Claims on foreigners 60,005 70,162 58,393 59,615 60,103 53,984 54,537 57,135 50,808 45,%2 51 Other branches of parent bank 17,296 21,277 17,954 20,048 26,261 21,%2 22,324 24,462 16,802 14,688 52 Banks 27,476 33,751 28,268 27,727 22,641 21,184 21,202 21,591 20,688 20,162 53 Public borrowers 7,051 7,428 5,830 5,480 5,374 5,280 5,540 5,405 5,407 5,435 54 Nonbank foreigners 8,182 7,706 6,341 6,360 5,827 5,558 5,471 5,677 7,911 5,677 55 Other assets 4,539 4,841 6,926 7,619 6,948 7,330 7,443 7,823 7,900 7,679 56 Total payable in U.S. dollars 136,813 151,434 163,518 172,148 166,389 166,869 165,676 167,259 160,821 160,274 1. Beginning with June 1984 data, reported claims held by foreign branches from $50 million to $150 million equivalent in total assets, the threshold now have been reduced by an increase in the reporting threshold for "shell" branches applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • January 1990 3.14—Continued 1989 Liability account 1986 1987 1988 Apr. May July Aug. All foreign countries 57 Total, all currencies 456,628 518,618 506,062 519,740 517,276 521,436 523,674 534,200 522,550' 521,291 58 Negotiable CDs 31,629 30,929 28,511 30,768 30,278 29,425 28,116 28,882 29,524 26,679 59 To United States 152,465 161,390 185,577 185,831 179,292 178,821 179,858 177,706 177,487 182,532 60 Parent bank 83,394 87,606 114,720 113,779 109,164 110,579 113,250 110,121 110,638 120,406 61 Other banks in United States 15,646 20,355 14,737 14,499 14,307 13,564 12,951 13,323 13,269 13,015 62 Nonbanks 53,425 53,429 56,120 57,553 55,821 54,678 53,657 54,262 53,580 49,111 63 To foreigners 253,775 304,803 270,923 280,859 282,920 288,291 289,603 301,422 288,665' 283,325 64 Other branches of parent bank 95,146 124,601 111,267 116,148 115,380 121,135 118,950 119,571 113,348' 104,256 65 Banks 77,809 87,274 72,842 71,447 72,155 72,903 74,213 80,070 76,024 78,050 66 Official institutions 17,835 19,564 15,183 17,911 17,933 17,795 17,559 18,846 17,589 17,349 67 Nonbank foreigners 62,985 73,364 71,631 75,353 77,452 76,458 78,881 82,935 81,704 83,670 68 Other liabilities 18,759 21,496 21,051 22,282 24,786 24,899 26,097 26,190 26,874 28,755 69 Total payable in U.S. dollars 336,406 361,438 367,483 379,610 372,788 376,474 378,331 381,879 379,795' 371,877 70 Negotiable CDs 28,466 26,768 24,045 26,287 25,970 25,411 24,129 24,914 25,483 22,927 71 To United States 144,483 148,442 173,190 173,471 166,666 166,134 167,217 163,771 165,985 169,841 72 Parent bank 79,305 81,783 107,150 105,534 100,897 102,643 104,929 100,521 103,117 111,658 73 Other banks in United States 14,609 18,951 13,468 13,195 12,781 11,944 11,537 11,845 11,964 11,837 74 Nonbanks 50,569 47,708 52,572 54,742 52,988 51,547 50,751 51,405 50,904 46,346 75 To foreigners 156,806 177,711 160,766 169,407 169,758 173,228 175,393 181,005 175,343' 165,339 76 Other branches of parent bank 71,181 90,469 84,021 88,298 87,716 90,123 90,850 91,713 86,719' 77,463 77 Banks 33,850 35,065 28,493 28,949 28,445 29,567 29,686 31,216 32,354 30,703 78 Official institutions 12,371 12,409 8,224 9,953 9,591 9,255 9,852 11,176 10,680 10,195 79 Nonbank foreigners 39,404 39,768 40,028 42,207 44,006 44,283 45,005 46,900 45,590 46,978 80 Other liabilities 6,651 8,517 9,482 10,445 10,394 11,701 11,592 12,189 12,984 13,770 United Kingdom 81 Total, all currencies 140,917 158,695 156,835 154,856 153,146 155,532 153,968 161,882 158,869 158,328 82 Negotiable CDs 27,781 26,988 24,528 26,625 26,157 25,539 24,396 25,342 25,905 23,122 83 To United States 24,657 23,470 36,784 32,757 29,715 30,867 30,013 29,954 31,551 31,076 84 Parent bank 14,469 13,223 27,849 25,098 20,455 20,329 21,892 19,680 21,561 24,013 85 Other banks in United States . 2,649 1,536 2,037 1,824 1,551 1,720 1,648 1,852 1,767 1,687 86 Nonbanks 7,539 8,711 6,898 5,835 7,709 8,818 6,473 8,422 8,223 5,376 87 To foreigners 79,498 98,689 86,026 85,863 87,478 88,985 88,381 94,335 88,661 91,101 88 Other branches of parent bank 25,036 33,078 26,812 25,781 25,800 26,867 24,974 26,556 24,326 24,769 89 Banks 30,877 34,290 30,609 29,094 30,714 30,925 31,066 33,047 30,790 31,330 90 Official institutions 6,836 11,015 7,873 9,429 8,637 8,946 8,650 9,586 8,868 8,878 91 Nonbank foreigners 16,749 20,306 20,732 21,559 22,327 22,247 23,691 25,146 24,677 26,124 92 Other liabilities 8,981 9,548 9,497 9,611 9,796 10,141 11,178 12,251 12,752 13,029 93 Total payable in U.S. dollars 99,707 102,550 105,907 107,092 102,065 104,356 101,742 105,700 106,915 103,016 94 Negotiable CDs 26,169 24,926 22,063 24,302 24,073 23,568 22,324 23,132 23,679 21,156 95 To United States 22,075 17,752 32,588 29,578 25,493 26,554 25,401 24,618 27,232 26,592 96 Parent bank 14,021 12,026 26,404 24,013 18,524 18,545 19,411 16,704 19,300 21,588 97 Other banks in United States . 2,325 1,308 1,752 1,559 1,227 1,368 1,393 1,477 1,502 1,511 98 Nonbanks 5,729 4,418 4,432 4,006 5,742 6,641 4,597 6,437 6,430 3,493 99 To foreigners 48,138 55,919 47,083 48,221 47,781 49,006 48,491 52,179 49,913 48,557 100 Other branches of parent bank 17,951 22,334 18,561 18,335 17,755 18,030 16,467 18,388 17,060 16,673 101 Banks 15,203 15,580 13,407 12,907 13,439 13,930 13,545 14,173 13,578 12,331 102 Official institutions 4,934 7,530 4,348 5,467 4,365 4,7% 5,579 6,131 5,825 5,532 103 Nonbank foreigners 10,050 10,475 10,767 11,512 12,222 12,250 12,900 13,487 13,450 14,021 104 Other liabilities 3,325 3,953 4,173 4,991 4,718 5,228 5,526 5,771 6,091 6,711 Bahamas and Caymans 105 Total, all currencies 142,592 160,321 170,639 179,185 172,324 173,137 171,780 172,789 165,401 164,684 106 Negotiable CDs 847 885 953 1,073 1,025 872 696 717 691 669 107 To United States 106,081 113,950 122,332 124,736 118,164 120,175 117,737 116,261 113,122 116,963 108 Parent bank 49,481 53,239 62,894 62,689 59,762 64,908 61,642 61,263 58,765 64,285 109 Other banks in United States 11,715 17,224 11,494 11,464 11,346 10,398 10,034 10,197 10,076 10,026 110 Nonbanks 44,885 43,487 47,944 50,583 47,056 44,869 46,061 44,801 44,281 42,652 111 To foreigners 34,400 43,815 45,161 50,855 50,606 48,989 50,477 52,881 48,769 43,892 112 Other branches of parent bank 12,631 19,185 23,686 28,010 27,655 26,478 27,763 29,085 25,370 20,207 113 Banks 8,617 10,769 8,336 8,495 8,203 8,233 8,322 8,309 9,016 9,273 114 Official institutions 2,719 1,504 1,074 1,234 1,722 1,164 1,102 1,223 1,081 928 115 Nonbank foreigners 10,433 12,357 12,065 13,116 13,026 13,114 13,290 14,264 13,302 13,484 116 Other liabilities 1,264 1,671 2,193 2,521 2,529 3,101 2,870 2,930 2,819 3,160 117 Total payable in U.S. dollars 138,774 152,927 162,950 172,213 166,489 166,954 165,593 166,988 160,800 160,133 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 Mar. Apr. May June July Aug.' Sept.p 1 Total1 259,556 299,677 307,667 313,637 306,420 302,048 307,369" 317,403 313,843 By type 2 Liabilities reported by banks in the United States 31,838 31,414 33,594 39,116 38,036 37,214 39,044' 37,958 36,098 3 U.S. Treasury bills and certificates 88,829 103,722 9955,,447788 9966,,110099 9911,,779988 8877,,119900 8877,,773344 8888,,332255 8855,,777755 U.S. Treasury bonds and notes 4 Marketable 122,432 149,056 161,923 161,081 160,013 160,462 163,281 173,238 173,934 5 Nonmarketable 300 523 534 538 542 545 549 553 557 6 U.S. securities other than U.S. Treasury securities 16,157 14,962 16,138 16,793 16,031 16,637 16,761 17,329 17,479 By area 7 Western Europe1 124,620 125,097 125,584 129,254 126,222 122,502 126,361 134,140 133,174 8 Canada 4,961 9,584 10,156 9,994 9,938 9,604 9,424 9,560 8,989 9 Latin America and Caribbean 8,328 10,099 7,524 7,168 6,091 5,925 7,166 7,986 8,924 10 Asia 116,098 145,504 156,264 158,564 156,073 155,372 155,811' 157,100 154,308 11 Africa 1,402 1,369 1,119 1,065 1,182 1,271 949 810 867 12 Other countries6 4,147 7,501 6,485 7,053 6,371 6,830 7,113 7,257 7,024 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 Currencies' Millions of dollars, end of period 1988 1989 IItteemm 11998855 11998866 11998877 Sept. Dec. Mar. June' 1 Banks' own liabilities 15,368 29,702 55,438 65,379 74,836 76,262 68,483 2 Banks' own claims 16,294 26,180 51,271 63,448 68,983 72,812 62,808 3 Deposits 8,437 14,129 18,861 22,594 25,100 25,846 23,825 4 Other claims 7,857 12,052 32,410 40,854 43,884 46,966 38,983 5 Claims of banks' domestic customers 580 2,507 551 335 364 376 723 1. Data on claims exclude foreign currencies held by U.S. monetary author- 2. Assets owned by customers of the reporting bank located in the United ities. States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • January 1990 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 Mar. Apr. May June July Aug.' Sept." 1 All foreigners 540,996 618,874 684,444 691,295 682,850 678,059 672,049 663,725' 679,101 692,329 2 Banks' own liabilities 406,485 470,070 513,840 523,798 516,025 512,334 510,524 501,541r 515,994 529,112 3 Demand deposits 23,789 22,383 21,863 22,473 22,325 21,920 21,224 21,351 19,718 21,547 4 Time deposits 130,891 148,374 152,020 157,734 156,982 154,768 152,801 149,355r 155,136 157,023 5 Other. 42,705 51,677 51,525 54,552 56,413 58,822 61,317 64,636' 63,718 56,062 6 Own foreign offices4 209,100 247,635 288,432 289,039 280,304 276,824 275,183 266,200' 277,422 294,479 7 Banks' custody liabilities5 134,511 148,804 170,604 167,497 166,825 165,725 161,525 162,184 163,106 163,217 8 U.S. Treasury bills and certificates6 90,398 101,743 115,056 108,117 106,916 110022,,773344 9988,,889933 9999,,336655 9999,,668833 9988,,667799 9 Other negotiable and readily transferable instruments 15,417 16,776 16,426 16,991 17,278 18,541 17,078 16,893 17,255 17,051 10 Other 28,696 30,285 39,121 42,389 42,631 44,451 45,555 45,925 46,168 47,487 11 Nonmonetary international and regional organizations 5,807 4,464 3,224 3,773 4,002 3,415 3,617 4,240 4,418 4,920 12 Banks' own liabilities 3,958 2,702 2,527 2,965 3,216 2,980 2,695 2,716 3,402 3,322 13 Demand deposits 199 124 71 88 163 76 32 41 66 90 14 Time deposits 2,065 1,538 1,183 1,394 1,502 1,202 1,254 918 1,079 1,677 15 Other 1,693 1,040 1,272 1,482 1,551 1,702 1,409 1,756 2,257 1,554 16 Banks' custody liabilities5 1,849 1,761 698 808 786 435 922 1,524 1,016 1,598 17 U.S. Treasury bills and certificates6 259 265 57 74 77 95 181 345 107 84 18 Other negotiable and readily transferable instruments 1,590 1,497 641 734 693 305 731 1,179 909 1,479 19 Other 0 0 0 0 16 35 10 0 1 35 20 Official institutions9 103,569 120,667 135,136 129,072 135,225 129,835 124,404 126,778' 126,283 121,873 21 Banks' own liabilities 25,427 28,703 27,004 27,977 33,036 31,738 31,891 33,96c 33,025 31,320 22 Demand deposits 2,267 1,757 1,915 1,605 1,782 1,761 1,801 1,947 1,625 2,026 23 Time deposits 10,497 12,843 9,657 10,852 12,439 11,144 9,924 9,937' 8,706 9,084 24 Other 12,663 14,103 15,432 15,521 18,815 18,833 20,166 22,077 22,694 20,210 25 Banks' custody liabilities5 78,142 91,965 108,132 101,095 102,189 98,097 92,513 92,818 93,258 90,552 26 U.S. Treasury bills and certii. .-es6 75,650 88,829 103,722 95,478 %,109 91,798 8877,,119900 8877,,773344 8888,,332255 8855,,777755 27 Other negotiable and readily . ..nsferable instruments 2,347 2,990 4,130 5,466 5,875 6,114 5,080 4,821 4,735 4,588 28 Other 145 146 280 152 205 185 244 263 198 189 29 Banks10 351,745 414,280 458,672 469,687 453,554 454,442 451,337 441,639^ 457,122 474,236 30 Banks' own liabilities 310,166 371,665 408,854 417,323 401,646 399,823 395,603 385,773' 400,639 414,870 31 Unaffiliated foreign banks 101,066 124,030 120,422 128,283 121,342 122,999 120,421 119,574' 123,217 120,391 32 Demand deposits 10,303 10,898 9,950 11,012 10,560 11,162 9,677 10,145 9,101 10,695 33 Time deposits 64,232 79,717 80,155 84,005 80,796 78,901 77,231 74,929' 80,429 80,896 34 Other 26,531 33,415 30,318 33,265 29,987 32,936 33,513 34,499^ 33,687 28,800 35 Own foreign offices4 209,100 247,635 288,432 289,039 280,304 276,824 275,183 266,200' 277,422 294,479 36 Banks' custody liabilities5 41,579 42,615 49,818 52,365 51,908 54,619 55,734 55,865 56,483 59,365 37 U.S. Treasury bills and certificates 9,984 9,134 7,602 7,310 6,921 77,,111144 77,,775599 77,,667744 77,,883388 99,,007777 38 Other negotiable and readily transferable instruments 5,165 5,392 5,725 5,288 5,051 5,686 5,314 5,326 5,280 5,037 39 Other 26,431 28,089 36,491 39,767 39,936 41,819 42,662 42,866 43,365 45,251 40 Other foreigners 79,875 79,463 87,411 88,763 90,068 90,366 92,691 91,068' 91,277 91,302 41 Banks' own liabilities 66,934 67,000 75,456 75,533 78,126 77,792 80,335 79,092' 78,929 79,600 42 Demand deposits 11,019 9,604 9,928 9,767 9,820 8,921 9,714 9,218 8,926 8,736 43 Time deposits 54,097 54,277 61,025 61,483 62,245 63,521 64,392 63,571' 64,923 65,366 44 Other. 1,818 3,119 4,503 4,283 6,060 5,351 6,229 6,303' 5,080 5,498 45 Banks' custody liabilities5 12,941 12,463 11,956 13,230 11,942 12,574 12,356 11,976 12,349 11,701 46 U.S. Treasury bills and certificates6 4,506 3,515 3,675 5,256 3,809 33,,772255 33,,776633 33,,661122 33,,441133 33,,774433 47 Other negotiable and readily transferable instruments 6,315 6,898 5,929 5,503 5,658 6,436 5,953 5,566 6,332 5,947 48 Other 2,120 2,050 2,351 2,471 2,474 2,412 2,639 2,797 2,604 2,012 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,4% 7,314 6,425 5,645 5,554 5,625 5,337 5,261 5,195 5,238 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 1989 AArreeaa aanndd ccoouunnttrryy 11998866 11998877 11998888 Mar. Apr. May June July Aug.' Sept.'' 1 Total 540,996 618,874 684,444 691,295 682,850 678,059 672,049 663,725r 679,101 692,329 2 Foreign countries 535,189 614,411 681,219 687,522 678,848 674,644 668,432 659,485' 674,682 687,410 3 Europe 180,556 234,641 235,989 232,141 230,769 228,141 226,058 226,264' 232,119 221,787 4 Austria 1,181 920 1,155 1,436 1,608 1,405 1,505 1,417'" 1,404 1,344 5 Belgium-Luxembourg 6,729 9,347 10,022 9,316 10,115 8,819 8,624 8,949' 9,286 10,112 6 Denmark 482 760 2,180 1,639 1,615 1,642 1,179 1,348 1,959 1,265 7 Finland 580 377 284 527 397 432 450 435 456 525 8 France 22,862 29,835 24,762 26,824 25,629 24,199 23,864 22.29C 24,864 22,964 9 Germany 5,762 7,022 6,772 5,517 6,967 7,791 9,198 8,715' 7,531 8,017 10 Greece 700 689 672 760 927 1,172 889 862 828 797 11 Italy 10,875 12,073 14,599 13,475 12,959 12,527 13,951 12,892' 14,597 14,491 12 Netherlands 5,600 5,014 5,316 5,600 5,610 5,870 4,875 5,029 5,106 4,944 13 Norway 735 1,362 1,559 1,547 1,783 1,479 1,485 1,522 1,453 1,698 14 Portugal 699 801 903 831 824 985 1,089 1,419' 1,945 2,206 15 Spain 2,407 2,621 5,494 4,902 5,795 5,419 5,085 5,910' 5,390 5,277 16 Sweden 884 1,379 1,274 1,416 1,730 1,552 1,478 1,248 2,002 1,706 17 Switzerland 30,534 33,766 34,179 30,005 29,239 28,448 28,806 28,581' 28,927 28,972 18 Turkey 454 703 1,012 1,024 1,051 785 737 1,053 1,023 1,086 19 United Kingdom 85,334 116,852 115,954 115,338 111,492 112,622 107,300 109,601' 109,927 102,316 20 Yugoslavia 630 710 529 440 465 478 558 604 691 774 21 Other Western Europe 3,326 9,798 8,598 10,771 11,519 11,887 14,322 13,655' 13,824 12,162 22 U.S.S.R 80 32 138 102 91 193 164 175 201 376 23 Other Eastern Europe 702 582 591 670 953 435 499 559' 704 755 24 Canada 26,345 30,095 21,040 25,694 23,024 18,353 17,514 17,472 16,958 17,923 25 Latin America and Caribbean 210,318 220,372 266,803 264,879 266,446 270,431 266,509 260,712' 269,383 283,742 26 Argentina 4,757 5,006 7,804 6,416 6,280 6,459 6,320 7,397 8,047 8,436 27 Bahamas 73,619 74,767 86,863 85,673 86,057 90,979 82,104 84,526 90,317 90,600 28 Bermuda 2,922 2,344 2,621 2,518 2,373 2,451 2,356 2,269 2,208 2,126 29 Brazil 4,325 4,005 5,304 4,926 5,554 5,302 5,026 5,396' 5,539 5,880 30 British West Indies 72,263 81,494 109,507 110,962 111,969 111,270 116,607 107,579' 109,712 121,940 31 Chile 2,054 2,210 2,936 3,063 2,933 2,988 2,733 2,683 2,739 2,763 32 Colombia 4,285 4,204 4,374 4,157 4,173 4,033 4,127 4,235 4,365 4,199 33 Cuba 7 12 10 10 10 15 10 9 10 14 34 Ecuador 1,236 1,082 1,379 1,422 1,376 1,285 1,351 1,411 1,376 1,363 35 Guatemala 1,123 1,082 1,195 1,271 1,272 1,232 1,251 1,297 1,279 1,293 36 Jamaica 136 160 269 223 222 188 294 227 231 233 37 Mexico 13,745 14,480 15,185 14,694 14,367 14,060 14,211 13,679 13,754 14,470 38 Netherlands Antilles 4,970 4,975 6,420 5,666 5,769 6,072 6,316 6,434 6,071 6,073 39 Panama 6,886 7,414 4,353 4,391 4,355 4,454 4,278 4,357 4,400 4,420 40 Peru 1,163 1,275 1,671 1,705 1,763 1,724 1,761 1,770 1,778 1,826 41 Uruguay 1,537 1,582 1,898 2,243 2,263 2,344 2,429 2,152 2,121 2,327 42 Venezuela 10,171 9,048 9,147 9,489 9,565 9,435 9,431 9,500' 9,367 9,506 43 Other 5,119 5,234 5,868 6,048 6,145 6,140 5,903 5,790 6,069 6,274 44 108,831 121,288 147,230 154,770 148,676 147,353 148,339 144,073' 145,445 153,160 China 45 Mainland 1,476 1,162 1,892 1,588 1,809 1,652 1,432 1,522 1,700 1,793 46 Taiwan 18,902 21,503 26,058 26,143 28,284 26,928 27,025 27,125 25,430 24,115 47 Hong Kong 9,393 10,180 11,738 10,772 11,403 12,215 12,132 11,346' 12,265 12,292 48 India 674 582 699 900 1,787 1,009 812 871 940 875 49 Indonesia 1,547 1,404 1,180 1,588 1,154 1,306 1,232 1,096 1,042 1,042 50 Israel 1,892 1,292 1,461 1,156 967 1,103 1,088 1,058 953 1,035 51 Japan 47,410 54,322 73,957 83,013 72,689 70,468 71,130 68,670' 70,556 78,482 57 Korea 1,141 1,637 2,541 2,827 3,023 3,166 3,047 3,556 2,907 3,037 53 Philippines 1,866 1,085 1,163 977 973 991 984 936 1,083 1,055 54 Thailand i 1,119 1,345 1,236 1,151 1,165 1,162 1,274 1,254 1,776 1,430 55 Middle-East oil-exporting countries 12,352 13,988 12,083 12,029 12,098 13,505 13,612 12,368 12,524 13,025 56 Other 11,058 12,788 13,223 12,625 13,324 13,851 14,571 14,271 14,270 14,979 57 Africa 4,021 3,945 3,991 3,717 3,665 3,802 3,904 3,618 3,265 3,536 58 Egypt 706 1,151 911 756 721 702 748 738 549 574 59 Morocco 92 194 68 60 82 68 67 66' 72 96 60 South Africa 270 202 437 226 256 324 188 231 201 246 61 Zaire 74 67 85 77 73 92 98 92 87 81 62 Oil-exporting countries 1,519 1,014 1,017 1,062 1,017 879 1,100 942' 897 1,036 63 Other 1,360 1,316 1,474 1,536 1,516 1,737 1,702 1,548 1,459 1,502 64 Other countries 5,118 4,070 6,165 6,322 6,267 6,563 6,108 7,346 7,513 7,261 65 Australia 4,196 3,327 5,293 5,490 5,471 5,700 5,192 6,620 6,721 6,517 66 All other 922 744 872 832 7% 863 916 726 792 744 67 Nonmonetary international and regional organizations 5,807 4,464 3,224 3,773 4,002 3,415 3,617 4,240 4,418 4,920 68 International 4,620 2,830 2,503 2,546 2,548 2,456 2,830 2,881 3,084 3,409 69 Latin American regional 1,033 1,272 589 1,004 981 564 613 961 690 1,183 70 Other regional6 154 362 133 223 472 395 175 397' 644 328 1. Includes the Bank for International Settlements and Eastern European 4. Comprises Algeria, Gabon, Libya, and Nigeria. countries that are not listed in line 23. 5. Excludes "holdings of dollars" of the International Monetary Fund. 2. Comprises Bulgaria, Czechoslovakia, the German Democratic Republic, 6. Asian, African, Middle Eastern, and European regional organizations, Hungary, Poland, and Romania. except the Bank for International Settlements, which is included in "Other 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and Western Europe." United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • January 1990 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 Mar. Apr. May June July Aug. Sept.' 1 Total 444,745 459,877 491,275 504,329 495,060 490,811 490,395 480,634r 488,449 498,737 2 Foreign countries 441,724 456,472 489,205 502,290 493,225 487,029 486,918 476,846' 485,325 495,860 3 Europe 107,823 102,348 117,048 116,640 111,170 112,975 111122,,224400 106,451' 107,349 111,390 4 Austria 728 793 485 809 805 764 880099 854 549 426 5 Belgium-Luxembourg 7,498 9,397 8,518 7,834 8,102 8,435 7,780 7,558 7,510 7,404 6 Denmark 688 717 480 548 770 470 774 562 768 557 7 Finland 987 1,010 1,065 909 1,214 1,280 1,175 1,433 1,401 1,233 8 France 11,356 13,548 13,243 15,744 16,524 16,092 15,574 15,970' 16,415 16,248 9 Germany 1,816 2,039 2,326 3,110 3,529 3,959 3,695 3,460 3,320 3,463 10 Greece 648 462 433 586 561 595 632 602 624 634 11 Italy 9,043 7,460 7,936 5,866 4,803 5,627 6,813 5,994 5,494 5,920 12 Netherlands 3,296 2,619 2,547 2,808 2,735 3,183 2,025 1,950' 1,447 1,992 13 Norway 672 934 455 432 551 567 667 796 665 644 14 Portugal 739 477 374 367 281 371 328 283 264 252 15 Spain 1,492 1,853 1,823 2,449 2,624 2,209 2,190 2,092 1,738 1,678 16 Sweden 1,964 2,254 1,977 2,613 2,164 2,158 1,946 2,003 2,046 2,286 17 Switzerland 3,352 2,718 3,895 3,822 4,540 3,975 5,485 4,123 4,479 5,032 18 Turkey 1,543 1,680 1,233 1,039 1,005 910 886 891 960 1,025 19 United Kingdom 58,335 50,823 65,708 62,908 56,057 58,076 56,891 53,463 54,801 57,605 20 Yugoslavia 1,835 1,700 1,390 1,455 1,369 1,366 1,359 1,406 1,346 1,338 21 Other Western Europe 619 1,152 1,262 1,415 966 1,161 974 1,247 1,249 22 U.S.S.R 345 389 1,255 1,298 1,346 1,155 1,212 1,227 1,456 1,574 23 Other Eastern Europe 948 852 754 780 775 820 838 sio' 819 829 24 Canada 21,006 25,368 18,889 19,048 19,150 16,072 16,089 14,493 15,073 14,752 25 Latin America and Caribbean 208,825 214,789 214,233 220,812 219,970 217,962 219,267 217,0%' 215,731 219,234 26 Argentina 12,091 11,996 11,826 11,616 11,516 11,381 10,840 10,724 10,729 10,459 27 Bahamas 59,342 64,587 67,006 72,804 75,665 70,552 66,611 70,468' 68,113 70,639 28 Bermuda 418 471 483 707 361 449 391 463 522 1,104 29 Brazil 25,716 25,897 25,735 25,618 25,947 25,785 25,675 25,824' 25,597 24,915 30 British West Indies 46,284 50,042 55,790 57,602 54,424 57,960 64,870 59,437' 61,202 63,215 31 Chile 6,558 6,308 5,217 5,335 5,224 5,266 4,841 4,770 4,780 4,685 32 Colombia 2,821 2,740 2,944 2,746 2,661 22,,660000 22,,558811 2,523 22,,550011 22,,447722 33 Cuba 0 1 1 1 2 11 11 9 11 11 34 Ecuador 2,439 2,286 2,075 2,032 2,025 1,944 1,894 1,932 1,917 1,904 35 Guatemala4 140 144 198 199 210 207 200 188 202 1% 36 Jamaica4 198 188 212 251 266 265 286 270 272 282 37 Mexico 30,698 29,532 24,637 24,188 24,077 24,038 23,653 23,356 23,155 22,802 38 Netherlands Antilles 1,041 980 1,321 1,013 1,009 999 1,183 1,162' 1,026 1,059 39 Panama 5,436 4,744 2,536 2,460 2,433 2,475 2,438 2,320 2,030 1,833 40 Peru 1,661 1,329 1,013 947 947 938 874 867 870 823 41 Uruguay 940 963 910 875 876 832 8% 854 866 899 42 Venezuela 11,108 10,843 10,733 10,761 10,659 10,600 10,551 10,269' 10,024 10,064 43 Other Latin America and Caribbean 1,936 1,738 1,597 1,659 1,668 1,670 1,482 1,659' 1,922 1,882 44 Asia 96,126 106,0% 130,906 137,097 134,439 113311,,557788 113300,,557788 113300,,223355'' 113377,,662244 114400,,559944 China Mainland 787 %8 762 988 816 952 920 644 575 590 46 Taiwan 2,681 4,592 4,184 4,179 3,952 3,715 4,058 3,946 3,356 3,355 47 Hong Kong 8,307 8,218 10,148 7,900 8,293 8,855 8,557 8,153 8,789 10,338 48 India 321 510 560 563 425 411 537 477 547 638 49 Indonesia 723 580 674 649 726 690 671 645 614 606 50 Israel 1,634 1,363 1,136 1,050 1,052 1,045 1,019 %1 902 857 51 Japan 59,674 68,658 90,162 101,501 97,666 93,447 91,086 91,764 96,079 97,618 52 Korea 7,182 5,148 5,219 5,183 5,198 5,338 5,615 5,774 6,007 5,691 53 Philippines 2,217 2,071 1,876 1,913 1,839 1,810 1,763 1,607 1,543 1,618 54 Thailand 578 496 849 986 1,018 975 1,058 1,061 1,117 1,203 55 Middle East oil-exporting countries 4,122 4,858 6,213 5,409 5,237 5,522 6,550 5,550 8,879 8,627 56 Other Asia 7,901 8,635 9,122 6,776 8,217 8,818 8,745 9,654' 9,216 9,454 57 Africa 4,650 4,742 5,718 5,974 6,087 6,084 6,075 6,066 6,037 6,024 58 Egypt 567 521 507 543 541 541 534 577 494 501 59 Morocco 598 542 511 541 532 538 531 518 535 524 60 South Africa 1,550 1,507 1,681 1,702 1,742 1,753 1,746 1,702 1,713 1,705 61 Zaire 28 15 17 17 19 19 17 17 16 20 62 Oil-exporting countries 694 1,003 1,523 1,481 1,474 1,504 1,503 1,587 1,608 1,629 63 Other 1,213 1,153 1,479 1,690 1,778 1,729 1,744 1,664 1,670 1,645 64 Other countries 3,294 3,129 2,410 2,720 2,409 2,359 2,670 2,505 3,512 3,867 65 Australia 1,949 2,100 1,517 1,686 1,505 1,167 1,307 1,518 2,499 2,952 66 All other 1,345 1,029 894 1,034 905 1,192 1,363 987 1,013 915 67 Nonmonetary international and regional organizations7 3,021 3,404 2,071 2,039 1,835 3,782 3,477 3,787 3,124 2,877 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 Mar. Apr. May June July' Aug/ Sept." 1 Total 444444477777778888888,,,,,,,666666655555550000000 444444499999997777777,,,,,,,666666633333335555555 555555533333338888888,,,,,,,777777799999999999999 555555555555557777777,,,,,,,555555500000007777777 555555533333339999999,,,,,,,999999922222227777777 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444444444444444444,,,,,,,777777744444445555555 444444455555559999999,,,,,,,888888877777777777777 444444499999991111111,,,,,,,222222277777775555555 555555500000004444444,,,,,,,333333322222229999999 495,060 490,811 444444499999990000000,,,,,,,333333399999995555555 480,634 488,449 498,737 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666664444444,,,,,,,000000099999995555555 66666664444444,,,,,,,666666600000005555555 66666662222222,,,,,,,777777700000000000000 66666662222222,,,,,,,999999977777773333333 63,248 63,789 66666662222222,,,,,,,666666633333336666666 62,694 62,654 61,924 44 OOwwnn ffoorreeiiggnn ooffffiicceess 222222211111111111111,,,,,,,555555533333333333333 222222222222224444444,,,,,,,777777722222227777777 222222255555557777777,,,,,,,444444400000005555555 222222277777771111111,,,,,,,999999966666668888888 259,693 257,271 222222255555558888888,,,,,,,000000022222220000000 248,716 251,922 265,568 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222222222222,,,,,,,999999944444446666666 111111122222227777777,,,,,,,666666600000009999999 111111122222229999999,,,,,,,444444488888887777777 111111133333330000000,,,,,,,111111111111111111111 131,104 130,488 111111122222228888888,,,,,,,333333399999991111111 128,924 132,429 131,031 66 DDeeppoossiittss 55555557777777,,,,,,,444444488888884444444 66666660000000,,,,,,,666666688888887777777 66666665555555,,,,,,,888888899999998888888 66666666666666,,,,,,,555555566666667777777 69,283 67,407 66666668888888,,,,,,,333333300000006666666 68,888 72,413 72,827 77 OOtthheerr 66666665555555,,,,,,,444444466666662222222 66666666666666,,,,,,,999999922222222222222 66666663333333,,,,,,,555555588888888888888 66666663333333,,,,,,,555555544444444444444 61,821 63,081 66666660000000,,,,,,,000000088888885555555 60,036 60,016 58,204 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444446666666,,,,,,,111111177777771111111 44444442222222,,,,,,,999999933333336666666 44444441111111,,,,,,,666666688888884444444 33333339999999,,,,,,,222222277777778888888 41,016 39,263 44444441111111,,,,,,,333333344444449999999 40,300 41,444 40,214 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,,,,,,,555555566666668888888 11111117777777,,,,,,,111111177777773333333 11111116666666,,,,,,,888888822222225555555 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States .... 43,984 40,857 45,391 47,225 47,897 49,491 46,687R 48,514 49,494 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 Sept. Dec. Mar. June 1 Total 227,903 232,295 235,130 230,608 233,280 231,454 231,468 By borrower 2 Maturity of 1 year or less2 160,824 160,555 163,997 168,121 172,730 168,377 167,441 3 Foreign public borrowers 26,302 24,842 25,889 29,390 26,602 24,135 23,688 4 All other foreigners 134,522 135,714 138,108 138,731 146,128 144,242 143,753 5 Maturity over 1 year 67,078 71,740 71,133 62,488 60,550 63,077 64,028 6 Foreign public borrowers 34,512 39,103 38,625 35,481 35,315 37,922 38,050 7 All other foreigners 32,567 32,637 32,507 27,007 25,235 25,155 25,978 By area Maturity of 1 year or less 8 Europe 56,585 61,784 59,027 54,277 56,031 57,878 58,355 9 Canada 6,401 5,895 5,680 6,410 6,282 5,115 5,693 10 Latin America and Caribbean 63,328 56,271 56,535 55,730 58,004 53,268 50,717 11 Asia 27,966 29,457 35,919 42,368 46,188 45,675 45,309 12 Africa 3,753 2,882 2,833 3,120 3,337 3,610 3,601 13 All other3 2,791 4,267 4,003 6,216 2,888 2,831 3,765 Maturity of over 1 year2 14 Europe 7,634 6,737 6,696 5,307 4,664 4,507 4,608 15 Canada 1,805 1,925 2,661 2,031 1,922 2,309 2,592 16 Latin America and Caribbean 50,674 56,719 53,817 48,325 47,548 49,790 50,133 17 Asia 4,502 4,043 3,830 3,943 3,613 3,699 3,815 18 Africa 1,538 1,539 1,747 2,257 2,301 2,292 2,408 19 All other3 926 111 2,381 625 501 480 472 1. Reporting banks include all kinds of depository institutions besides commer- 2. Remaining time to maturity, cial banks, as well as some brokers and dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • January 1990 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 June Sept. Dec. Mar. June Sept. Dec.' Mar.' June" 1 Total 389. V 386.5' 385.C 387.r 382.4' 371.4' 352.2' 354.3' 346.8 345.8 339.5 2 G-10 countries and Switzerland 147.0' 156.6 157.7' 154.8' 159.7' 156.8' 151.0' 148.9' 153.1 145.7 144.8 3 Belgium-Luxembourg 9.4r 8.4' 8.4' 8.1' 10.0' 9.1' 9.2 9.5' 9.0 8.6 7.8 4 France 12. y 13.6' 12.5 13.6' 13.7' 11.8 10.9r 10.3' 10.5 11.2 10.8 5 Germany 10.5 11.6 11.2 10.5 12.6 11.8 10.6 9.2' 10.3 10.2 10.6 6 Italy 9.7' 9.0 7.7' 6.8' 7.5' 7.4 6.3' 5.6' 6.8 5.2 6.1 7 Netherlands 3.8' 4.6 7.3 4.8 4.1 3.3 3.2' 2.9 2.7 2.8 2.8 8 Sweden 2.8' 2.4 2.3' 2.6 2.1 2.1' 1.9 1.9 1.8 2.3 1.8 9 Switzerland 4.4 5.8 5.7 5.4 5.6 5.1 5.6 5.2 5.4 5.1 5.3 10 United Kingdom 63.3' 10.9 71.7' 72.0' 68.8' 71.7' 70.4' 67.6' 66.2 65.4 64.5 11 Canada 6.8 5.2' 4.5' 4.6' 5.5 4.7' 5.3' 4.9' 5.0 4.0 5.1 12 Japan 24. r 25.1' 26.4' 26.4' 29.8 29.7' 27.6' 31.8' 35.3 30.9 30.1 13 Other developed countries 30.3r 26.1' 25.5' 26.3' 26.4' 26.4' 24.0T 23. or 21.0 21.0 21.2 14 Austria 1.6r 1.7 1.8 1.8' 1.9 1.6 1.6 1.6 1.5 1.4 1.7 15 Denmark 2.4' 1.7 1.6' 1.6 1.7 1.4 1.1' 1.2' 1.1 1.1 1.4 16 Finland 1.6 1.4 1.4 1.4 1.2' l.C 1.2 1.3 1.1 1.0 1.0 17 Greece 2.6 2.3 2.0 1.9 2.0 2.3 2.1' 2.1 1.8 2.1 2.3 18 Norway 2.9 2.4 2.1 2.0 2.2' 1.9 1.9' 2.0 1.8 1.6 1.8 19 Portugal 1.3' .9 .8 .9 .6' .5' .4 .4 .4 .4 .6 20 Spain 5.8 5.8 6.1 7.4 8.0 8.9r 7.2 6.3 6.2 6.6 6.2 21 Turkey 2 .or 2.0' 2.1' 1.9' 2.0' 2.0' 1.8' 1.6' 1.5 1.3 1.2 22 Other Western Europe 2.0 1.5' 1.6' 1.6 1.6 1.9' 1.7 1.9 1.3 1.1 1.1 23 South Africa 3.2 3.0 3.1' 2.9 2.9 2.8 2.8 2.7 2.4 2.2 2.1 24 Australia 5.0 3.4' 3.0' 2.9 2.4 2.0' 2.2 1.8 1.8 2.4 1.9 25 OPEC countries3 21.5' 19.4' 19.1' 19.2' 17.4' 17.6' n Sf 11.9 16.6 16.2 16.0 26 Ecuador 2.1 2.2 2.1 2.1 1.9 1.9 1.8 1.8 1.7 1.6 1.5 27 Venezuela 9.0' 8.7' 8.5' 8.3 8.1 8.1' 8.0 7.9 7.9 7.9 7.5 28 Indonesia 3.0 2.5 2.2 2.0 1.9 1.8' 1.8' 1.8' 1.7 1.7 1.9 29 Middle East countries 5.4' 4.3 4.5' 5.0 3.6 3.9' 3.5' 4.6' 3.4 3.3 3.4 30 African countries 2.0 1.8' 1.8' 1.8' l^ 1.9 1.9' 1.9 1.7 1.6 31 Non-OPEC developing countries IOS.O' 99.6' 100.8' 98. <r 97.8' 94.4 91.8' 87.2' 85.3 85.4 83.1 Latin America 32 Argentina 9.9 9.5 9.6' 9.4' 9.5' 9.6' 9.5' 9.3' 9.0 8.4 7.9 33 Brazil 25.5' 25.3' 25.0' 25.1 24.7 23.8' 23.7 22.4 22.4 22.7 22.0 34 Chile 7.C 7.1 7.2 7.1' 6.9 6.6 6.4 6.3' 5.6 5.7 5.1 35 Colombia 2.6 2.1 2.0' 2.0' 2.0 2.0' 2.2' 2.1 2.1 1.9 1.7 36 Mexico 24.3' 24.0' 25.3 24.7' 23.5' 22.4' 21.1 20.4' 18.8 18.0 17.5 37 Peru 1.8 1.4 1.3 1.2 1.1 1.1 .9 .8 .8 .7 .6 38 Other Latin America 3.5' 3.1 3.(y 2.8 2.8' 2.8 2.6 2.5 2.6 2.7 2.5 Asia China 39 Mainland .5 .4 .6 .3 .3 .4 .4' .2 .3 .5 .3 40 Taiwan 4.5 4.9 6.6 6.0 8.2 6.1 4.9 3.2 3.7 4.9 5.2 41 India 1.2 1.2 1.7 1.9 1.9 2.1 2.3 2.0 2.1 2.6 2.4 42 Israel 1.6 1.5 1.3 1.3 1.0 1.0 1.0 1.0 1.2 .9 .8 43 Korea (South) 9.3' 6.7' 5.7' 5.0' 5.0' 5.7' 5.9 6.0 6.1 6.1 6.6 44 Malaysia 2.4 2.1 1.7 1.6 1.5 1.5 1.5 1.7' 1.6 1.7 1.6 45 Philippines 5.7 5.4 5.4 5.4 5.2' 5.1 4.9 4.7 4.5 4.4 4.4 46 Thailand 1.4 .9 .8 .7 .7 1.0 1.1 1.2 1.1 1.0 11..00 47 Other Asia 1.0 .7 .7 .7 .7 .7 .8 .8 .9 .8 ..88 Africa 48 Egypt 1.0 .7 .6 .6 .6' .5 .6 .5 .4 .5 .6 49 Morocco .9 .9 .9 .9 .9 .9 .9 .8 .9 .9 .9 50 Zaire .1 1 .1 .1 .0 .1 .1 .0 .0 .0 ..00 51 Other Africa4 1.9 1.6 1.3 1.3 1.3 1.2 1.2 1.2 1.1 1.1 11..11 52 Eastern Europe 4.4' 3.5' 3.6' 3.6' 3.2' 3.1' 3.3' 3.1' 3.6 3.5 3.4 53 U.S.S.R .1 .1 .3 .4' .3' .3 .4 .4 .7 .7 .6 54 Yugoslavia 2.4' 2.0' 2.0' 1.9' 1.8' 1.9' 1.8' 1.8 1.7 1.6 55 Other l^ 1.4 1.3 1.2 1.1' 1.0' 1.0 1.0 1.1 1.1 1.1 56 Offshore banking centers 64.0' 61.5r 60.1' 63.7' 54.5' 51.5' 43.0 47.3' 44.3 48.4 43.2 57 Bahamas 21.5' 22.4' 20.1' 25.'7' 17.3' 15.9 &.9 12.9 11.1 15.8 11.0 58 Bermuda .7 .6' .6 .6 .6 .8 1.0 .9 .9 1.1 .7 59 Cayman Islands and other British West Indies 12.2' 12.3' 13.1' ll^ 13.5' 11.6' 10.3' ll^ 12.9 11.9 10.8 60 Netherlands Antilles 2.2 1.8 1.3 1.2 1.2 1.3 1.2 1.2 1.0 .9 .9 61 Panama5 6.0 4.0 3.9 3.7 3.7 3.2' 3.0 2.7 22..66 2.3 11..99 62 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 ..11 .1 ..11 63 Hong Kong 11.5' 11.1 12.5 12.3 11.2 11.3 11.6' 10.5' 9.6 9.6 10.4 64 Singapore 9.8 9.2 8.4' 8.1 7.0 7.4 6.9' 7.0 6.1 6.8 7.3 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 16.9 19.8 18.1 22.3 23.2 21.5 22.2' 26.7 22.6 25.1 27.4 1. The banking offices covered by these data are the U.S. offices and foreign from $50 million to $150 million equivalent in total assets, the threshold now branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. applicable to all reporting branches. Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. This group comprises the Organization of Petroleum Exporting Countries (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, adjusted to exclude the claims on foreign branches held by a U.S. office or another Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and foreign branch of the same banking institution. The data in this table combine Oman (not formally members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 4. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 5. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). 6. Foreign branch claims only. 2. Beginning with June 1984 data, reported claims held by foreign branches 7. Includes New Zealand, Liberia, and international and regional organizahave been reduced by an increase in the reporting threshold for "shell" branches tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A65 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1988 1989 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998855 11998866 11998877 Mar. June Sept. Dec. Mar. June 1 Total 27,825 25,587 28,302 29,792 30,107 32,196 33,417 36,986 36,579 2 Payable in dollars 24,296 21,749 22,785 24,012 24,805 26,967 27,831 31,195 31,604 3 Payable in foreign currencies 3,529 3,838 5,517 5,780 5,302 5,229 5,586 5,790 4,975 By type 4 Financial liabilities 13,600 12,133 12,424 14,139 13,894 14,877 14,917 17,164 16,644 5 Payable in dollars 11,257 9,609 8,643 10,145 10,234 11,283 11,049 13,084 12,882 6 Payable in foreign currencies 2,343 2,524 3,781 3,994 3,660 3,594 3,868 4,080 3,762 7 Commercial liabilities 14,225 13,454 15,878 15,653 16,213 17,319 18,500 19,822 19,935 8 Trade payables 6,685 6,450 7,305 6,454 6,768 6,480 6,454 6,921 6,227 9 Advance receipts and other liabilities 7,540 7,004 8,573 9,200 9,446 10,839 12,045 12,901 13,708 10 Payable in dollars 13,039 12,140 14,142 13,867 14,571 15,684 16,782 18,111 18,722 11 Payable in foreign currencies 1,186 1,314 1,737 1,786 1,642 1,635 1,718 1,711 1,213 By area or country Financial liabilities 12 Europe 7,700 7,917 8,320 9,377 9,030 10,295 9,712 12,143 10,849 13 Belgium-Luxembourg 349 270 213 251 282 339 289 320 357 14 France 857 661 382 408 371 372 267 249 274 15 Germany 376 368 551 553 503 488 548 372 470 16 Netherlands 861 542 866 990 862 996 879 933 834 17 Switzerland 610 646 558 691 638 687 1,163 954 936 18 United Kingdom 4,305 5,140 5,557 6,301 6,201 7,243 6,418 9,121 7,799 19 Canada 839 399 360 394 412 431 650 616 544 20 Latin America and Caribbean 3,184 1,944 1,189 1,452 1,448 1,057 1,239 677 1,406 7.1 Bahamas 1,123 614 318 289 250 238 184 189 165 77 Bermuda 4 4 0 0 0 0 0 0 0 23 Brazil 29 32 25 0 0 0 0 0 0 24 British West Indies 1,843 1,146 778 1,099 1,154 812 645 471 621 25 Mexico 15 22 13 15 26 2 1 15 17 26 Venezuela 3 0 0 2 0 0 0 0 0 27 Asia 1,815 1,805 2,451 2,836 2,928 3,088 3,312 3,722 3,841 28 Japan 1,198 1,398 2,042 2,375 2,331 2,435 2,563 2,950 3,082 29 Middle East oil-exporting countries 82 8 8 11 11 4 3 1 11 30 Africa 12 1 4 5 2 3 1 5 3 31 Oil-exporting countries 0 1 1 3 1 1 0 3 2 32 All other4 50 67 100 75 74 3 2 2 0 Commercial liabilities 33 Europe 4,074 4,446 5,505 5,619 5,722 6,688 7,347 7,772 7,782 34 Belgium-Luxembourg 62 101 132 154 147 206 170 134 116 35 France 453 352 426 414 408 438 459 574 521 36 Germany 607 715 908 810 791 1,185 1,699 1,361 1,140 37 Netherlands 364 424 423 457 508 647 591 668 687 38 Switzerland 379 385 559 527 482 486 417 457 456 39 United Kingdom 976 1,341 1,588 1,722 1,771 2,110 2,063 2,444 2,688 40 Canada 1,449 1,405 1,301 1,392 1,167 1,109 1,218 1,152 1,119 41 Latin America and Caribbean 1,088 924 864 980 1,035 997 1,118 1,262 1,660 47 Bahamas 12 32 18 19 61 19 49 35 34 43 Bermuda 77 156 168 325 272 222 286 426 388 44 Brazil 58 61 46 59 54 58 95 102 538 45 British West Indies 44 49 19 14 28 30 34 31 42 46 Mexico 430 217 189 164 233 177 179 197 181 47 Venezuela 212 216 162 122 140 204 177 179 184 48 6,046 5,080 6,565 5,883 6,279 6,632 6,910 7,435 6,937 49 Japan . 1,799 2,042 2,578 2,508 2,659 2,763 3,091 3,048 2,697 50 Middle East oil-exporting countries • 2,829 1,679 1,964 1,062 1,320 1,298 1,386 1,526 1,430 51 Africa 587 619 574 575 626 477 578 706 768 52 Oil-exporting countries 238 197 135 139 115 106 202 272 253 53 All other4 982 980 1,068 1,204 1,383 1,415 1,328 1,4% 1,670 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 Bulletin, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • January 1990 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1988 1989 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998855 11998866 11998877 Mar. June Sept. Dec. Mar. June 1 Total 28,876 36,265 30,964 31,089 37,641 38,114 33,412 31,482 34,272' 2 Payable in dollars 26,574 33,867 28,502 29,026 35,613 35,695 31,164 29,254 32,097r 3 Payable in foreign currencies 2,302 2,399 2,462 2,063 2,028 2,419 2,249 2,227 2,175' By type 4 Financial claims 18,891 26,273 20,363 20,326 26,274 27,011 21,482 19,613 22,247' 5 Deposits 15,526 19,916 14,903 12,697 19,492 19,079 15,763 14,733 17,217'" 6 Payable in dollars 14,911 19,331 13,775 12,121 18,775 18,145 14,744 13,886 16,337' 7 Payable in foreign currencies 615 585 1,128 576 718 934 1,019 847 879' 8 Other financial claims 3,364 6,357 5,460 7,629 6,781 7,932 5,719 4,881 5,031' 9 Payable in dollars 2,330 5,005 4,646 6,509 5,886 6,990 4,995 4,007 4,213' 10 Payable in foreign currencies 1,035 1,352 814 1,120 895 942 724 874 818 11 Commercial claims 9,986 9,992 10,600 10,763 11,367 11,103 11,930 11,868 12,025' 12 Trade receivables 8,696 8,783 9,535 9,650 10,332 10,109 10,845 10,604 10,827' 13 Advance payments and other claims 1,290 1,209 1,065 1,113 1,036 993 1,085 1,264 1,197' 14 Payable in dollars 9,333 9,530 10,081 10,397 10,952 10,560 11,425 11,361 11,546' 15 Payable in foreign currencies 652 462 519 366 415 542 505 507 478 By area or country Financial claims 16 Europe 6,929 10,744 9,531 9,805 11,512 10,537 9,942 9,119 8,920' 17 Belgium-Luxembourg 10 41 7 15 16 49 10 11 155 18 France 184 138 332 308 181 278 224 230 191 19 Germany 223 116 102 92 168 123 138 180 233 20 Netherlands 161 151 350 333 335 356 344 383 290 21 Switzerland 74 185 65 54 105 84 215 203 70 22 United Kingdom 6,007 9,855 8,467 8,789 10,430 9,321 8,659 7,801 7,644' 23 Canada 3,260 4,808 2,844 2,669 2,913 3,612 2,338 2,210 2,611' 24 Latin America and Caribbean 7,846 9,291 7,012 6,483 10,854 11,814 8,128 7,216 8,981' 25 Bahamas 2,698 2,628 1,994 2,329 4,176 44,,006644 1,847 2,173 1,875' 26 Bermuda 6 6 7 43 87 118888 19 25 125 27 Brazil 78 86 63 86 46 44 47 49 78 28 British West Indies 4,571 6,078 4,433 3,503 6,045 7,055 5,729 4,549 6,494' 29 Mexico 180 174 172 154 146 133 151 117 114 30 Venezuela 48 21 19 34 27 27 21 25 31 31 Asia 731 1,317 879 1,294 876 927 799 928 1,372' 32 Japan 475 999 605 1,133 646 737 603 685 975' 33 Middle East oil-exporting countries 4 7 8 5 5 5 4 8 7 34 Africa 103 85 65 53 60 95 106 89 80 35 Oil-exporting countries3 29 28 7 7 9 9 10 8 8 36 All other4 21 28 33 24 58 26 169 51 284 Commercial claims 37 Europe 3,533 3,725 4,180 4,170 4,694 4,295 5,010 4,901 4,893' 38 Belgium-Luxembourg 175 133 178 193 158 171 176 201 200' 39 France 426 431 650 552 684 542 671 752 767' 40 Germany 346 444 562 637 773 613 611 643 639' 41 Netherlands 284 164 133 150 172 145 208 156 191 42 Switzerland 284 217 185 173 262 183 322 246 218 43 United Kingdom 898 999 1,073 1,059 1,095 1,179 1,306 1,282 1,333' 44 Canada 1,023 934 936 1,166 937 977 974 1,100 1,168' 45 Latin America and Caribbean 1,753 1,857 1,930 1,930 2,067 2,104 2,229 2,100 2,083 46 Bahamas 13 28 19 14 13 12 36 34 14 47 Bermuda 93 193 170 171 174 161 229 234 236 48 Brazil 206 234 226 209 232 234 298 277 314 49 British West Indies 6 39 26 24 25 22 21 23 29 50 Mexico 510 412 368 374 411 463 457 476 428 51 Venezuela 157 237 283 274 304 266 226 211 229 52 Asia 2,982 2,755 2,915 2,853 2,994 3,029 2,955 3,090 3,129' 53 Japan 1,016 881 1,158 1,107 1,168 963 934 1,032 982 54 Middle East oil-exporting countries 638 563 450 408 446 437 441 421 437 55 Africa 437 500 401 419 425 425 435 386 397 56 Oil-exporting countries3 130 139 144 126 136 137 122 95 111' 57 All other4 257 222 238 225 250 273 328 290 354 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.- Sept. Mar. Apr. May June July Aug. Sept." U.S. corporate securities STOCKS 1 Foreign purchases 249,122 181,185 161,005 15,819 14,101 17,904 24,311 17,115 22,097' 19,333 2 Foreign sales 232,849 183,185 150,326 15,447 14,241 16,846 20,640 15,084 20,939' 16,834 3 Net purchases, or sales (-) 16,272 -2,000 10,679 372 -141 1,058 3,671 2,031r 1,158 2,498 4 Foreign countries 16,321 -1,825 10,956 509 -134 1,060 3,689 2,047 1,141 2,550 5 Europe 1,932 -3,350 2,231 73 181 -293 418 778 -110 1,409 6 France 905 -281 96 70 168 -123 -15 75 -251 -25 7 Germany -70 218 -591 59 17 -215 -155 -79 -238 -69 8 Netherlands 892 -535 -15 5 -125 -76 131 12 -64' 37 9 Switzerland -1,123 -2,243 -2,289 91 -141 -293 -114 -23 -344 61 10 United Kingdom 631 -954 4,067 -106 287 494 329 545 772 871 11 Canada 1,048 1,087 -131 130 -66 -75 168 8 14 -269 12 Latin America and Caribbean 1,318 1,238 3,433 635 120 391 168 108 250 578 13 Middle East1 -1,360 -2,474 3,055 220 -345 206 1,679 456 553 120 14 Other Asia 12,896 1,365 2,069 -536 -28 784 1,201 729 423 643 15 Japan 11,365 1,922 2,115 -458 -16 763 1,215 626 424 611 16 Africa 123 188 110 5 10 -1 16 2 22 24 17 Other countries 365 121 190 -19 -7 50 40 -34 -11 45 18 Nonmonetary international and regional organizations -48 -176 -278 -137 . -6 -2 -18 -17 17 -52 BONDS2 19 Foreign purchases 105,856 86,363 84,973 10,423 9,736 8,329 10,856 10,044 10,943 8,895 20 Foreign sales 78,312 58,395 62,979 7,025 5,270 8,776 9,043 7,526 9,046 6,801 21 Net purchases, or sales (—) 27,544 27,968 21,994 3,398 4,466 -447 1,813 2,518 1,897 2,095 22 Foreign countries 26,804 28,510 21,477 3,358 4,465 -570 1,690 2,550 1,920 1,795 23 Europe 21,989 17,243 14,154 2,794 3,102 -55 2,132 1,976 192 1,459 24 France 194 143 420 -16 27 93 6 121 -35 77 25 Germany 33 1,344 -202 148 135 -170 -162 -53 -121 -33 26 Netherlands 269 1,514 636 69 51 9 395 -22 96 28 27 Switzerland 1,587 505 198 4 90 -114 -110 81 13 -27 28 United Kingdom 19,770 13,088 12,580 2,578 2,252 665 1,881 1,937 -9 1,376 29 Canada 1,296 711 819 213 115 59 -188 79 76 156 30 Latin America and Caribbean 2,857 1,931 2,402 301 219 136 271 300 62 233 31 Middle East1 -1,314 -178 -498 87 3 -100 -613 36 27 30 32 Other Asia 2,021 8,900 4,371 -50 990 -615 83 53 1,574 -108 33 Japan 1,622 7,686 2,447 -285 608 -722 -67 -25 1,167 -189 34 Africa 16 -8 20 5 4 0 1 3 5 -3 35 Other countries -61 -89 208 8 33 5 4 103 -17 30 36 Nonmonetary international and regional organizations 740 -542 517 41 1 122 123 -32 -23 299 Foreign securities 37 Stocks, net purchases, or sales (-) 1,081 -1,918 -8,929 -153 -947 -1,322 -2,077 -748 -1,489' -657 38 Foreign purchases 95,458 75,211 73,478 9,477 6,686 7,748 9,111 7,595' 9,487' 8,449 39 Foreign sales 94,377 77,128 82,407 9,630 7,633 9,070 11,188 8,343' 10,976' 9,106 40 Bonds, net purchases, or sales (-) -7,946 -7,221 -5,431 -653 -196 -107 -1,524 -1,414 993' -1,836 41 Foreign purchases 199,089 217,932 173,387 23,395 15,525 17,242 21,016 20,206' 24,077' 18,300 42 Foreign sales 207,035 225,153 178,818 24,047 15,721 17,350 22,540 21,621' 23,084' 20,136 43 Net purchases, or sales (—), of stocks and bonds .... -6,865 -9,138 -14,360 -805 -1,143 -1,430 -3,601 -2,163' -4%' -2,493 44 Foreign countries -6,757 -9,619 -14,587 -998 -1,350 -1,633 -3,401 —2,315r -682' -1,926 45 Europe -12,101 -7,632 -14,510 -1,402 -1,757 -1,520 -3,876 -2,37c -620' -2,116 46 Canada -4,072 -3,735 -3,699 -585 194 -555 -699 -692 -258 -194 47 Latin America and Caribbean 828 1,384 617 161 197 -90 27 -76 313 -61 48 Asia 9,299 985 3,452 883 70 700 1,191 805' 301 411 49 Africa 89 -54 13 -16 10 13 3 12 -4 -3 50 Other countries -800 -567 -460 -40 -64 -180 -47 7 -414 39 51 Nonmonetary international and regional organizations -108 480 228 192 207 203 -200 152 186 -568 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, ties sold abroad by U.S. corporations organized to finance direct investments Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). abroad. 2. Includes state and local government securities, and securities of U.S. government agencies and corporations. Also includes issues of new debt securi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • January 1990 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1989 1989 Country or area 1987 1988 Jan.- Sept. Mar. Apr. May June July Aug. Sept." Transactions, net purchases or sales (-) during period1 1 Estimated total2 25,587 48,868 47,568 8,639 29 7,043 -5,202 -1,317 21,979r 4,787 2 Foreign countries2 30,889 48,206 48,012 8,296 291 5,520 -5,319 -773 22,406r 5,646 3 Europe2 23,716 14,353 31,478 2,142 -1,814 4,498 -1,305 4,357 15,191 2,494 4 Belgium-Luxembourg 653 923 838 -23 -87 88 13 82 413 216 5 Germany 13,330 -5,268 4,383 -181 -693 -179 -1,106 2,622 2,503 510 6 Netherlands -913 -356 3% 242 -643 -638 -674 100 1,304 302 7 Sweden 210 -323 951 -508 398 -69 647 110 241 -50 8 Switzerland 1,917 -1,074 2,419 1,767 440 -83 378 -361 -748 374 9 United Kingdom 3,975 9,674 16,060 1,207 -1,298 3,873 -133 1,024 9,863 339 10 Other Western Europe 4,563 10,786 6,453 -363 74 1,511 -423 786 1,614 802 11 Eastern Europe -19 -10 -21 0 -5 -5 -6 -5 0 0 12 Canada 4,526 3,761 -69 -55 114 157 -478 -533 1,028 -373 13 Latin America and Caribbean -2,192 713 1,434 113 -133 -179 643 839 -280 10 14 Venezuela 150 -109 112 -53 -18 0 1 71 120 29 15 Other Latin America and Caribbean -1,142 1,130 -305 132 -231 -78 -14 104 217 -519 16 Netherlands Antilles -1,200 -308 1,626 34 117 -101 656 665 -617 500 17 4,488 27,606 15,118 5,659 1,743 1,734 -5,577 -4,954 7,118' 2,816 18 Japan 868 21,752 958 1,855 2,624 1,646 -7,780 -5,360 3,009 2,346 19 Africa -56 -13 54 -2 32 -3 66 -5 -48 0 20 All other 407 1,786 -4 439 350 -687 1,332 -477 -603 698 21 Nonmonetary international and regional organizations -5,302 661 -444 344 -262 1,523 117 -544 -42T -858 22 International -4,387 1,106 -670 424 -252 1,340 -253 -546 -576 -512 23 Latin America regional 3 -31 72 -8 -21 70 191 3 75 -228 Memo 24 Foreign countries 30,889 48,206 48,012 8,296 291 5,520 -5,319 -773 22,406' 5,646 25 Official institutions 31,064 26,624 24,878 6,549 -842 -1,068 449 2,819 9,957r 695 26 Other foreign2 -176 21,582 23,135 1,747 1,133 6,588 -5,768 -3,592 12,44? 4,950 Oil-exporting countries 27 Middle East3 -3,142 1,963 10,950 2,607 -471 -299 670 422 3,677 654 28 Africa 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 Oct. 31, 1989 Rate on Oct. 31, 1989 Rate on Oct. 31, 1989 Country Country Country Month Month Month Percent effective Percent effective Percent effective Austria.. 6.0 June 1989 France 10.25 Oct. 1989 Norway 8.0 June 1983 Belgium . 10.25 Oct. 1989 Germany, Fed. Rep. of. 6.0 Oct. 1989 Switzerland . 6.0 Oct. 1989 Brazil ... 49.0 Mar. 1981 Italy 13.5 Mar. 1989 United Kingdom'' Canada.. 12.42 Oct. 1989 Japan 3.75 Oct. 1989 Venezuela 8.0 Oct. 1985 Denmark 10.5 Oct. 1989 Netherlands 7.0 Oct. 1989 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 May June July Aug. Sept. Oct. Nov. 1 Eurodollars 6.70 7.07 7.85 9.66 9.28 8.85 8.71 8.85 8.67 8.42 2 United Kingdom 10.87 9.65 10.28 13.08 14.17 13.91 13.86 13.99 15.03 15.07 3 Canada 9.18 8.38 9.63 12.44 12.35 12.24 12.30 12.32 12.29 12.35 4 Germany 4.58 3.97 4.28 6.96 6.92 7.00 6.99 7.37 8.08 8.22 5 Switzerland 4.19 3.67 2.94 7.26 7.09 6.92 7.01 7.42 7.63 7.68 6 Netherlands 5.56 5.24 4.72 7.30 7.11 7.07 7.15 7.53 8.08 8.40 7 France 7.68 8.14 7.80 8.81 8.89 9.05 8.95 9.20 9.89 10.41 8 Italy 12.60 11.15 11.04 12.27 12.35 12.46 12.52 12.40 12.63 12.67 9 Belgium 8.04 7.01 6.69 8.45 8.51 8.46 8.44 8.66 9.51 9.81 10 Japan 4.96 3.87 3.96 4.25 4.46 4.71 4.80 4.88 5.25 5.71 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 International Statistics • January 1990 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1989 Country/currency 1988 June July Aug. Sept. Oct. 1 Australia/dollar2 67.095 70.137 78.409 75.606 75.658 76.345 77.271 77.421 78.295 2 Austria/schilling 15.260 12.649 12.357 13.913 13.308 13.570 13.733 13.140 12.860 3 Belgium/franc 44.664 37.358 36.785 41.414 39.560 40.310 40.841 39.197 38.403 4 Canada/dollar 1.3896 1.3259 1.2306 1.1986 1.1891 1.1758 1.1828 1.1749 1.1697 5 China, P.R./yuan 3.4616 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 3.7314 6 Denmark/krone 8.0955 6.8478 6.7412 7.7087 7.3527 7.4938 7.5872 7.2781 7.1138 7 Finland/markka 5.0722 4.4037 4.1933 4.4302 4.2699 4.3504 4.4219 4.2817 4.2619 8 France/franc 6.9257 6.0122 5.9595 6.7135 6.4105 6.5085 6.5855 6.3339 6.2225 9 Germany/deutsche mark 2.1705 1.7981 1.7570 1.9789 1.8901 1.9268 1.9502 1.8662 1.8300 10 Greece/drachma 139.93 135.47 142.00 170.42 163.84 166.26 169.03 165.88 164.97 11 Hong Kong/dollar 7.8038 7.7986 7.8072 7.7934 7.8040 7.8078 7.8078 7.8081 7.8140 12 India/rupee 12.597 12.943 13.900 16.420 16.416 16.609 16.745 16.819 16.925 13 Ireland/punt 134.14 148.79 152.49 134.92 141.26 138.43 136.71 142.50 144.73 14 Italy/lira 1,491.16 1,297.03 1,302.39 1,434.40 1,367.39 1,384.24 1,404.18 1,369.24 1,343.83 15 Japan/yen 168.35 144.60 128.17 143.98 140.42 141.49 145.07 142.21 143.53 16 Malaysia/ringgit 2.5831 2.5186 2.6190 2.7086 2.6809 2.6825 2.6980 2.6945 2.7028 17 Netherlands/guilder.... 2.4485 2.0264 1.9778 2.2292 2.1318 2.1726 2.1992 2.1072 2.0652 18 New Zealand/dollar2 ... 52.457 59.328 65.560 57.376 57.537 59.217 59.144 55.937 56.301 19 Norway /krone 7.3985 6.7409 6.5243 7.1852 6.9478 7.0480 7.1264 6.9502 6.9010 20 Portugal/escudo 149.80 141.20 144.27 164.92 158.31 161.15 163.36 159.08 157.65 21 Singapore/dollar 2.1783 2.1059 2.0133 1.9572 1.9589 1.9604 1.9769 1.9622' 1.9588 22 South Africa/rand 2.2919 2.0385 2.2773 2.7828 2.6909 2.7247 2.7882 2.6403 2.6295 23 South Korea/won 884.63 825.94 734.52 669.43 669.84 671.13 672.73 673.86 674.94 24 Spain/peseta 140.04 123.54 116.53 126.55 118.73 120.64 122.14 118.77 116.58 25 Sri Lanka/rupee 27.934 29.472 31.820 33.475 34.764 36.276 39.572 40.018 40.017 26 Sweden/krona 7.1273 6.3469 6.1370 6.6872 6.4653 6.5481 6.6103 6.4580 6.4306 27 Switzerland/franc 1.7979 1.4918 1.4643 1.7089 1.6281 1.6605 1.6865 1.6302 1.6189 28 Taiwan/dollar 37.839 31.753 28.636 26.023 25.816 25.685 25.737 25.739 26.029 29 Thailand/baht 26.315 25.775 25.312 25.909 25.771 25.912 26.012 25.868 25.877 30 United Kingdom/pound2 146.77 163.98 178.13 155.30 162.68 159.47 157.15 158.74 157.26 MEMO 31 United States/dollar3 ... 99.12 98.92 97.99 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 Reserve 2. Value in U.S. cents. Bulletin, vol. 64, August 1978, p. 700). 3. Index of weighted-average exchange value of U.S. dollar against the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when IPCs Individuals, partnerships, and corporations about half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 SMSAs Standard metropolitan statistical areas when the smallest unit given is millions) . . . Cell not applicable General Information Minus signs are used to indicate (1) a decrease, (2) a negative obligations of the Treasury. "State and local government" figure, or (3) an outflow. also includes municipalities, special districts, and other po- "U.S. government securities" may include guaranteed litical subdivisions. issues of U.S. government agencies (the flow of funds figures In some of the tables, details do not add to totals because also include not fully guaranteed issues) as well as direct of rounding. STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases December 1989 A84 SPECIAL TABLES—Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30, 1988 August 1989 All December 31, 1988 August 1989 A78 March 31, 1989 December 1989 All June 30, 1989 January 1990 All Terms of lending at commercial banks August 1988 January 1989 All 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.stlouisfed.org/ Special table begins on page A72. Federal Reserve Bank of St. Louis

All Special Tables • January 1990 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1'2 Consolidated Report of Condition, June 30, 1989 Millions of dollars Banks with foreign offices3'4 Bank o s f f w ic i e th s o d n o ly m estic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 1 Total assets6 3,205,745 1,847,518 431,965 1,472,256 957,335 383,825 2 Cash and balances due from depository institutions 335,149 237,775 116,181 121,594 67,053 28,803 3 Cash items in process of collection, unposted debits, and currency and coin A 86,496 1,917 84,579 31,027 A 4 Cash items in process of collection and unposted debits n.a. n.a. 72,799 22,936 5 n.a. n.a. 11,780 8,091 n.a. 6 Balances due from depository institutions in the United States n.a. 33,428 21,123 12,305 20,823 7 Balances due from banks in foreign countries and foreign central banks 96,419 92,994 3,424 3,828 8 Balances due from Federal Reserve Banks 21,433 147 21,286 11,376 MEMO 9 Noninterest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States).... n.a. n.a. 7,369 13,618 9,669 10 Total securities, loans and lease financing receivables, net 2,632,585 1,430,780 n.a. n.a. 849,708 338,429 11 Total securities, book value 548,690 232,275 30,837 201,439 199,203 114,003 12 U.S. Treasury securities and U.S. government agency and corporation obligations 351,194 130,539 2,566 127,973 134,521 86,134 13 U.S. Treasury securities n a. 56,738 1,277 55,461 66,383 n a. 14 U.S. government agency and corporation obligations n a. 73,800 1,289 72,512 68,138 n a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 104,440 58,076 1,137 56,939 29,825 15,506 16 All other n a. 15,724 152 15,573 38,313 n.a. 17 Securities issued by states and political subdivisions in the United States 99,603 42,976 513 42,463 38,060 18,567 18 2,646 795 52 743 801 1,040 19 Tax-exempt 97,164 42,182 461 41,721 37,260 17,526 20 Other securities 85,279 54,814 27,016 27,797 22,599 7,867 21 Other domestic securities n a. 28,897 2,239 26,658 22,005 n.a. 22 All holdings of private certificates of participation in pools of residential mortgages 4,180 1,886 0 1,886 11,,779999 495 23 All other n.a. n.a. n.a. n.a. n.a. n.a. 24 Foreign securities n.a. n.a. n.a. n.a. n.a. n. a. 25 Federal funds sold and securities purchased under agreements to resell 139,529 79,758 1,175 78,582 38,855 20,916 26 Federal funds sold 115,364 59,697 n.a. n.a. 34,942 20,581 27 Securities purchased under agreements to resell 24,725 20,060 n.a. n.a. 3,913 336 28 Total loans and lease financing receivables, gross 1,994,488 1,157,301 215,022 942,279 628,166 209,021 29 LESS: Unearned income on loans 15,618 7,005 2,022 4,983 6,442 2,166 30 Total loans and leases (net of unearned income) 1,989,469 1,150,296 213,000 937,296 621,724 206,855 31 LESS: Allowance for loan and lease losses 44,966 31,412 n.a. n.a. 10,073 3,346 32 LESS: Allocated transfer risk reserves 137 137 n.a. n.a. 0 0 33 EQUALS: Total loans and leases, net 1,944,366 1,118,747 n.a. n.a. 611,651 203,509 Total loans, gross, by category 34 Loans secured by real estate 721,266 351,964 23,395 328,570 226644,,889955 99,913 35 Construction and land development 1 A A 86,069 38,145 7,577 36 Farmland | | 2,126 4,736 9,442 37 1-4 family residential properties 1 1 1 138,115 129,596 54,981 38 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 24,206 18,316 2,623 39 All other loans 1 1 1 113,909 111,279 52,358 40 Multifamily (5 or more) residential properties 1 1 10,666 6,919 1,869 41 Nonfarm nonresidential properties \ • • 91,593 85,499 26,044 42 Loans to depository institutions 54,339 48,473 23,926 24,547 5,257 608 43 To commercial banks in the United States n a. 19,545 1,386 18,159 4,486 n a. 44 To other depository institutions in the United States n a. 2,685 469 2,216 688 n a. 45 To banks in foreign countries n a. 26,244 22,071 4,173 83 n a. 46 Loans to finance agricultural production and other loans to farmers 31,000 5,641 241 5,400 7,087 18,220 47 Commercial and industrial loans 609,486 424,653 99,975 324,677 142,220 42,613 48 To U.S. addressees (domicile) n a. 346,620 24,487 322,133 141,919 n.a. 49 To non-U.S. addressees (domicile) n.a. 78,033 75,489 2,544 301 n.a. 50 Acceptances of other banks 4,138 899 516 384 1,685 1,554 51 U.S. banks n.a. 296 32 264 n.a. n.a. 52 n.a. 603 484 120 n.a. n.a. 53 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 376,227 158,232 12,523 145,709 176,329 41,666 54 115,680 46,117 n.a. n.a. 66,733 2,406 55 Other (includes single payment and installment) 261,453 112,115 n.a. n.a. 109,596 39,260 56 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 42,808 25,946 348 25,598 15,054 1,808 57 Taxable 1,337 826 116 711 441 69 58 41,904 25,120 232 24,887 14,613 1,739 59 125,315 112,901 50,506 62,395 10,350 2,065 60 Loans to foreign governments and official institutions n.a. 33,127 31,609 1,518 221 n a. 61 n.a. 79,774 18,897 60,877 10,129 n.a. 62 Loans for purchasing and carrying securities n.a. n.a. n.a. 16,991 1,521 n.a. 63 All other loans n.a. n.a. n.a. 43,886 8,608 n.a. 64 Lease financing receivables 34,454 28,591 3,592 24,999 5,289 574 65 Assets held in trading accounts 41,180 39,845 20,627 19,218 812 208 6 6 7 6 O Pr t e h m er i s r e e s a l a n e d st a fi t x e e o d w a n s e s d e ts (including capitalized leases) 4 1 6 2 , , 4 2 5 9 0 0 24 5 , , 4 8 2 0 4 5 k| n n . . a a . . 1 3 5 , , 9 1 2 1 9 9 6 2 , , 6 5 8 5 6 0 68 Investments in unconsolidated subsidiaries and associated companies 2,865 2,108 1 696 41 69 Customers' liability on acceptances outstanding 29,931 29,297 n.a. n.a. 411 20 70 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs n.a. n.a. 1 40,997 n.a. n.a. 71 Intangible assets 5,315 3,113 T n.a. 1,963 212 72 Other assets 99,417 74,372 n.a. n.a. 17,643 6,876 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20—Continued Banks with foreign offices3'4 Bank o s f f w ic i e th s o d n o l m y estic IItteemm TToottaall Total Foreign Domestic Over 100 Under 100 73 Total liabilities, limited-life preferred stock, and equity capital 3,205,745 1,847,518 n. a. n.a. 957,335 383,825 74 Total liabilities7 2,999,310 1,746,083 431,964 1,370,823 887,950 349,153 75 Limited-life preferred stock 86 0 n.a. n.a. 82 4 76 Total deposits 2,437,752 1,324,247 323,311 1,000,936 774,001 339,504 77 Individuals, partnerships, and corporations 1 A 186,959 907,697 710,939 309,908 78 U.S. government A 2,451 1,536 599 79 States and political subdivisions in the United States 40,777 43,316 23,949 80 Commercial banks in the United States n. a. n. a. n.a. 25,599 9,363 1,616 81 Other depository institutions in the United States 4,954 2,261 959 82 Banks in foreign countries 8,032 380 n.a. 83 Foreign governments and official institutions 25,394 24,001 1,393 242 n.a. 84 Certified and official checks 19,379 11,010 978 10,032 5,964 2,405 85 All other n.a. n.a. 111,373 n.a. n.a. 69 86 Total transaction accounts 319,259 210,610 88,696 87 Individuals, partnerships, and corporations 268,011 184,655 78,279 88 U.S. government 1,600 1,206 494 89 States and political subdivisions in the United States 9,492 10,937 6,421 90 Commercial banks in the United States n. a. n.a. n.a. 18,304 6,339 776 91 Other depository institutions in the United States 3,519 1,323 285 92 Banks in foreign countries 7,413 178 n.a. 93 Foreign governments and official institutions 887 88 n.a. 94 Certified and official checks 10,032 55,,996644 2,405 95 All other n.a. n.a. 37 96 Demand deposits (included in total transaction accounts) 246,740 134,259 47,971 97 Individuals, partnerships, and corporations 197,891 114,225 41,916 98 U.S. government 1,578 1,189 478 99 States and political subdivisions in the United States 7,117 5,049 2,082 100 Commercial banks in the United States 18,304 6,335 775 101 Other depository institutions in the United States 3,519 1,311 278 102 Banks in foreign countries 7,413 178 n.a. 103 Foreign governments and official institutions 886 88 n.a. 104 Certified and official checks 10,032 55,,996644 2,405 105 All other n.a. n.a. 36 106 Total nontransaction accounts 681,677 563,391 250,808 107 Individuals, partnerships, and corporations n.a. n. a. n.a. 639,686 526,284 231,629 108 U.S. government 850 329 105 109 States and political subdivisions in the United States 31,285 32,379 17,528 110 Commercial banks in the United States 7,295 3,024 839 111 U.S. branches and agencies of foreign banks 612 177 n.a. 11? Other commercial banks in the United States 6,683 2,847 n.a. 113 Other depository institutions in the United States 1,435 938 674 114 Banks in foreign countries 619 202 n.a. 115 Foreign branches of other U.S. banks 4 179 n.a. 116 Other banks in foreign countries 615 23 n.a. 117 Foreign governments and official institutions 506 234 n.a. 118 All other n.a. n.a. 32 119 Federal funds purchased and securities sold under agreements to repurchase 262,361 198,299 444 197,855 60,768 3,294 120 Federal funds purchased 162,466 127,619 n.a. n.a. 30,490 1,583 121 Securities sold under agreements to repurchase 103,739 70,680 n. a. n.a. 30,278 1,712 17? Demand notes issued to the U.S. Treasury n a. n.a. n.a. 25,114 5,278 698 17.3 Other borrowed money 122,760 90,481 38,210 52,271 30,588 1,186 124 Banks liability on acceptances executed and outstanding 30,052 29,418 5,110 24,308 411 20 125 Notes and debentures subordinated to deposits 17,837 15,208 n. a. n.a. 2,408 156 126 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs n a. n.a. n. a. 15,706 n.a. n.a. 177 All other liabilities 82,611 63,316 n. a. n.a. 14,496 4,293 128 Total equity capital 206,349 101,435 n.a. n.a. 69,302 34,669 MEMO 129 Holdings of commercial paper included in total loans, gross 1,048 843 204 11,,118822 n.a. 130 Total individual retirement accounts (IRA) and Keogh plan accounts 45,531 42,075 17,139 131 Total brokered deposits 43,715 17,054 1,157 132 Total brokered retail deposits 12,697 11,444 1,014 133 Issued in denominations of $100,000 or less 3,943 6,269 903 134 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 8,753 55,,117744 111111 Savings deposits 135 Money market deposit accounts (MMDAs) 116699,,882200 111177,,332211 3399,,223366 136 Other savings deposits (excluding MMDAs) 78,342 73,874 30,207 137 Total time deposits of less than $100,000 207,076 250 138,628 138 Time certificates of deposit of $100,000 or more 195,367 117,725 41,122 139 Open-account time deposits of $100,000 or more n a. n.a. n a. 31,071 4,523 1,614 140 All NOW accounts (including Super NOW) 70,832 73,830 39,231 141 Total time and savings deposits 754,196 639,742 291,533 Quarterly averages 147, 990022,,331122 661122,,113355 220022,,222233 143 Obligations (other than securities) of states and political subdivisions in the United States 2266,,558822 1155,,007700 n.a. 144 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 75,105 76,430 40,997 Nontransaction accounts in domestic offices 145 Money market deposit accounts (MMDAs) 169,135 118,280 40,063 146 Other savings deposits 78,090 74,350 30,159 147 Time certificates of deposit of $100,000 or more 194,425 116,711 40,425 148 All other time deposits 231,492 249,900 137,985 149 Number of banks 12,912 245 n a. n.a. 2,521 10,146 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • January 1990 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1-2-6 Consolidated Report of Condition, March 31, 1989 Millions of dollars Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,429,591 1,932,683 1,547,500 385,183 496,908 2 Cash and balances due from depository institutions 188,648 156,072 124,658 31,414 32,576 3 Cash items in process of collection and unposted debits 95,734 85,481 68,585 16,896 10,253 4 Currency and coin 19,872 16,360 13,734 2,626 3,512 5 Balances due from depository institutions in the United States 33,127 21,943 17,664 4,279 11,184 6 Balances due from banks in foreign countries and foreign central banks 7,252 5,550 4,408 1,142 1,703 7 Balances due from Federal Reserve Banks 32,662 26,738 20,266 6,472 5,924 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,077,099 1,635,738 1,318,349 317,389 441,361 9 Total securities, book value 400,641 298,988 232,243 66,746 101,653 10 U.S. Treasury securities 121,845 87,080 68,435 18,646 34,764 11 U.S. government agency and corporation obligations 140,649 109,230 87,610 21,619 31,420 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 86,764 73,462 59,742 13,719 13,302 N All other 53,885 35,768 27,868 7,900 18,117 14 Securities issued by states and political subdivisions in the United States 80,524 63,720 46,897 16,822 16,804 15 Taxable 1,543 1,204 984 220 339 16 Tax-exempt 78,981 62,515 45,913 16,602 16,465 17 Other domestic securities 48,663 34,411 26,133 8,278 14,252 18 All holdings of private certificates of participation in pools of residential mortgages 3,685 2,843 1,852 991 843 19 All other n.a. n.a. n.a. n.a. n.a. 20 n.a. n.a. n.a. n.a. n.a. 21 Federal funds sold and securities purchased under agreements to resell 117,438 99,746 69,617 30,129 17,692 22 Federal funds sold 34,942 22,396 19,650 2,747 12,546 23 Securities purchased under agreements to resell 3,913 2,749 2,226 523 1,164 24 Total loans and lease financing receivables, gross 1,570,445 1,245,765 1,023,685 222,080 324,679 25 LESS: Unearned income on loans 11,424 8,761 7,195 1,567 2,663 26 Total loans and leases (net of unearned income) 1,559,020 1,237,004 1,016,490 220,514 322,016 Total loans, gross, by category 27 Loans secured by real estate 593,465 448,290 385,133 63,157 145,175 28 Construction and land development 124,214 99,254 83,193 16,061 24,960 29 Farmland 6,862 4,581 4,016 565 2,281 30 1-4 family residential properties 267,711 196,718 169,043 27,675 70,993 31 Revolving, open-end and extended under lines of credit 42,523 32,983 28,170 4,812 9,540 32 All other loans 225,188 163,735 140,873 22,863 61,453 33 Multifamily (5 or more) residential properties 17,586 13,883 12,133 1,750 3,703 34 Nonfarm nonresidential properties 177,092 133,854 116,748 17,106 43,239 35 Loans to commercial banks in the United States 22,645 19,419 14,814 4,605 3,226 36 Loans to other depository institutions in the United States 2,904 2,749 2,402 347 155 37 Loans to banks in foreign countries 4,256 4,050 2,166 1,884 206 38 Loans to finance agricultural production and other loans to farmers 12,487 9,696 8,691 1,005 2,791 39 Commercial and industrial loans 466,897 382,684 304,254 78,431 84,213 40 To U.S. addressees (domicile) 464,052 380,106 302,422 77,684 83,946 41 To non-U.S. addressees (domicile) 2,845 2,579 1,832 747 266 42 Acceptances of other banks11 2,069 1,208 1,001 207 861 43 Of U.S. banks 723 517 429 89 206 44 Of foreign banks 235 198 152 46 36 45 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 322,038 251,280 212,824 38,456 70,758 46 Loans to foreign governments and official institutions 1,739 1,672 1,087 585 67 47 Obligations (other than securities) of states and political subdivisions in the United States 40,652 34,100 25,237 8,863 6,552 48 1,152 907 724 183 244 49 39,500 33,193 24,514 8,679 6,307 SO 71,006 64,433 44,352 20,081 6,572 51 Loans for purchasing and carrying securities 18,511 17,041 10,567 6,474 1,470 52 52,494 47,392 33,785 13,607 5,102 53 Lease financing receivables 30,288 26,183 21,722 4,461 4,104 54 Customers' liability on acceptances outstanding 24,094 22,934 17,394 5,540 1,160 55 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 41,019 36,295 25,070 11,225 4,723 56 Remaining assets 139,751 117,939 87,100 30,840 21,811 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21—Continued Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 57 Total liabilities and equity capital 2,429,591 1,932,683 1,547,500 385,183 496,908 58 Total liabUities4 2,258,773 1,799,847 1,444,223 355,625 458,926 59 Total deposits 1,774,937 1,385,399 1,126,882 258,517 389,538 60 Individuals, partnerships, and corporations 1,618,636 1,259,443 1,027,845 231,597 359,194 61 U.S. government 3,987 3,319 2,936 383 667 62 States and political subdivisions in the United States 84,094 64,183 53,745 10,438 19,911 63 Commercial banks in the United States 34,962 30,893 23,637 7,256 4,069 64 Other depository institutions in the United States 7,215 5,855 4,918 936 1,361 65 Banks in foreign countries 8,412 7,498 4,009 3,489 915 66 Foreign governments and official institutions 1,635 1,482 1,045 436 153 67 Certified and official checks 15,996 12,728 8,746 3,981 3,269 68 Total transaction accounts 529,869 427,546 339,262 88,284 102,323 69 Individuals, partnerships, and corporations 452,666 361,381 290,058 71,323 91,285 70 U.S. government 2,807 2,272 1,924 348 535 71 States and political subdivisions in the United States 20,429 16,337 13,521 2,817 4,092 77 Commercial banks in the United States 24,642 22,787 17,498 5,289 1,855 73 Other depository institutions in the United States 4,842 4,036 3,190 846 806 74 Banks in foreign countries 7,591 7,152 3,792 3,359 440 75 Foreign governments and official institutions 896 854 534 320 42 76 Certified and official checks 15,996 12,728 8,746 3,981 3,269 77 Demand deposits (included in total transaction accounts) 380,999 312,906 242,557 70,349 68,093 78 Individuals, partnerships, and corporations 312,116 253,050 198,588 54,462 59,066 79 U.S. government 2,767 2,236 1,890 346 531 80 States and political subdivisions in the United States 12,166 10,074 8,329 1,745 2,092 81 Commercial banks in the United States 24,638 22,784 17,495 5,289 1,854 82 Other depository institutions in the United States 4,830 4,029 3,183 846 801 83 Banks in foreign countries 7,591 7,151 3,792 3,359 440 84 Foreign governments and official institutions 894 853 533 320 41 85 Certified and official checks 15,996 12,728 8,746 3,981 3,269 86 Total nontransaction accounts 1,245,068 957,854 787,620 170,233 287,214 87 Individuals, partnerships, and corporations 1,165,970 898,061 737,787 160,274 267,909 88 U.S. government 1,180 1,048 1,012 35 132 89 States and political subdivisions in the United States 63,664 47,846 40,224 7,621 15,819 90 Commercial banks in the United States 10,319 8,106 6,139 1,967 2,213 91 U.S. branches and agencies of foreign banks 789 494 333 161 295 97 Other commercial banks in the United States 9,530 7,612 5,806 1,806 1,918 93 Other depository institutions in the United States 2,373 1,819 1,728 90 555 94 Banks in foreign countries 821 346 217 129 475 95 Foreign branches of other U.S. banks 182 42 42 0 140 % Other banks in foreign countries 639 304 175 129 334 97 Foreign governments and official institutions 739 628 512 116 112 98 Federal funds purchased and securities sold under agreements to repurchase12 258,623 221,941 169,047 52,894 36,682 99 Federal funds purchased 30,490 22,322 18,996 3,327 8,168 100 Securities sold under agreements to repurchase 30,278 14,980 12,162 2,818 15,298 101 Demand notes issued to the U.S. Treasury 30,392 27,945 20,921 7,023 2,447 102 Other borrowed money 82,858 66,116 54,904 11,212 16,742 103 Banks liability on acceptances executed and outstanding 24,719 23,559 17,969 5,591 1,160 104 Notes and debentures subordinated to deposits 2,408 1,603 1,486 117 806 105 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 15,706 12,701 10,559 2,141 3,006 106 Remaining liabilities 84,835 73,285 53,014 20,270 11,551 107 Total equity capital9 170,818 132,836 103,278 29,558 37,982 MEMO 108 Holdings of commercial paper included in total loans, gross 1,387 785 667 118 601 109 Total individual retirement accounts (IRA) and Keogh plan accounts 87,606 68,218 56,690 11,528 19,388 110 Total brokered deposits 60,769 46,517 38,597 7,920 14,251 111 Total brokered retail deposits 24,140 15,558 12,340 3,218 8,582 117 Issued in denominations of $100,000 or less 10,213 5,135 4,607 527 5,078 113 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 13,928 10,424 7,733 2,691 3,504 Savings deposits 114 Money market deposit accounts (MMDAs) 287,141 222288,,553344 187,006 4411,,552288 5588,,660077 115 Other savings accounts 152,216 116,908 89,024 27,883 35,309 116 Total time deposits of less than $100,000 457,024 341,427 289,727 51,701 115,597 117 Time certificates of deposit of $100,000 or more 313,092 240,154 201,787 38,367 72,938 118 Open-account time deposits of $100,000 or more 35,594 30,830 20,076 10,754 4,764 119 All NOW accounts (including Super NOW accounts) 144,662 111,821 94,216 17,604 32,842 120 Total time and savings deposits 1,393,938 1,072,493 884,325 188,168 321,445 Quarterly averages 171 11,,551144,,444477 11,,119999,,115555 998844,,777722 221144,,338833 331155,,229911 122 Obligations (other than securities) of states and political subdivisions in the United States 41,653 35,094 25,898 9,196 6,558 173 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized transfer accounts) 151,535 117,125 97,744 19,382 34,410 Nontransaction accounts 124 Money market deposit accounts (MMDAs) 287,414 227,388 186,626 40,762 60,026 125 Other savings deposits 152,441 116,753 89,191 27,562 35,688 12.6 Time certificates of deposits of $100,000 or more 311,136 239,095 200,337 38,758 72,041 127 All other time deposits 481,392 362,708 302,116 60,592 118,684 128 2,766 1,563 1,318 245 1,203 Footnotes appear at the end of table 4.22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • January 1990 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2'6 Consolidated Report of Condition, March 31, 1989 Millions of dollars Members NNoonn-- IItteemm mmeemmbbeerrss Total National State 1 Total assets6 2,813,416 2,087,797 1,672,249 415,548 725,620 2 Cash and balances due from depository institutions 217,450 168,182 134,562 33,621 49,268 23,303 17,760 14,866 2,894 5,542 4 Noninterest-bearing balances due from commercial banks 30,657 17,576 14,515 3,061 13,080 5 Other 163,491 132,846 105,180 27,665 30,645 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,418,874 1,773,383 1,428,806 344,577 645,491 7 Total securities, book value 514,644 343,569 268,752 74,818 171,075 8 U.S. Treasury securities and U.S. government agency and corporation obligations 348,628 230,011 183,640 46,371 118,617 9 Securities issued by states and political subdivisions in the United States 99,090 70,705 52,556 18,149 28,385 10 Taxable 2,584 1,588 1,281 307 9% 11 Tax-exempt 96,507 69,117 51,275 17,842 27,390 58,263 38,918 29,381 9,537 19,345 13 All holdings of private certificates of participation in pools of residential mortgages 4,181 3,080 2,005 1,074 1,101 14 All other n.a. n.a. n.a. n.a. n.a. 15 Federal funds sold and securities purchased under agreements to resell 138,354 109,426 77,436 31,990 28,928 55,523 31,927 27,378 4,549 23,5% 17 Securities purchased under agreements to resell 4,248 2,898 2,317 582 1,350 18 Total loans and lease financing receivables, gross 1,779,466 1,330,083 1,090,520 239,563 449,383 19 LESS: Unearned income on loans 13,591 9,695 7,901 1,794 3,895 20 Total loans and leases (net of unearned income) 1,765,875 1,320,388 1,082,619 237,769 445,488 Total loans, gross, by category 21 Loans secured by real estate 693,378 488,083 441166,,666644 7711,,441188 220055,,229955 22 Construction and land development 131,791 102,367 85,637 16,729 29,424 16,304 7,715 6,547 1,168 8,589 24 1-4 family residential properties 322,692 218,857 186,390 32,467 103,835 25 Revolving, open-end loans, and extended under lines of credit 45,145 34,140 29,059 5,081 11,005 277,547 184,717 157,331 27,386 92,830 27 Multifamily (5 or more) residential properties 19,454 14,584 12,695 1,889 4,870 28 Nonfarm nonresidential properties 203,136 144,559 125,395 19,164 58,577 29 Loans to depository institutions 30,413 26,512 19,611 6,900 3,901 30 Loans to finance agricultural production and other loans to farmers 30,707 16,079 13,785 2,294 14,628 31 Commercial and industrial loans 509,510 400,943 318,502 82,441 108,567 32 Acceptances of other banks 3,622 1,856 1,581 275 1,766 33 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 363,704 268,514 226,640 41,874 95,190 34 Obligations (other than securities) of states and political subdivisions in the United States 42,460 34,771 25,796 8,975 7,690 35 Nonrated industrial development obligations 1,221 934 748 186 286 36 Other obligations (excluding securities) 41,239 33,836 25,048 8,788 7,403 74,810 66,964 46,079 20,885 7,846 38 Lease financing receivables 30,862 26,362 21,861 4,501 4,500 39 Customers' liability on acceptances outstanding 24,114 22,950 17,407 5,543 1,164 40 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 41,019 36,295 25,070 11,225 4,723 152,978 123,282 91,474 31,808 29,696 2,813,416 2,087,797 1,672,249 415,548 725,620 43 Total liabilities4 2,607,925 1,941,304 1,558,154 383,150 666,621 2,114,442 1,522,796 1,237,643 285,154 591,645 45 Individuals, partnerships, and corporations 1,928,544 1,385,120 1,129,080 256,040 543,424 4,586 3,561 3,137 423 1,025 47 States and political subdivisions in the United States 108,043 73,139 61,113 12,025 34,904 48 Commercial banks in the United States 36,577 31,876 24,340 7,536 4,701 49 Other depository institutions in the United States 8,174 6,253 5,240 1,012 1,922 18,401 13,841 9,652 4,189 4,560 51 Allother 10,116 9,007 5,080 3,927 1,109 618,565 464,503 369,331 95,172 154,062 53 Individuals, partnerships, and corporations 530,945 393,963 316,637 77,327 136,981 3,300 2,475 2,094 381 826 55 States and political subdivisions in the United States 26,850 18,660 15,431 3,229 8,190 56 Commercial banks in the United States 25,419 23,380 17,882 5,498 2,038 57 Other depository institutions in the United States 5,127 4,174 3,308 866 953 18,401 13,841 9,652 4,189 4,560 59 All other 8,524 8,010 4,328 3,682 514 60 Demand deposits (included in total transaction accounts) 428,970 333,637 259,316 74,321 95,333 61 Individuals, partnerships, and corporations 354,032 270,972 213,135 57,837 83,060 3,245 2,437 2,057 380 808 63 States and political subdivisions in the United States 14,248 10,836 8,%5 1,872 3,411 64 Commercial banks in the United States 25,414 23,378 17,880 5,498 2,036 65 Other depository institutions in the United States 5,108 4,164 3,299 865 944 66 Certified and official checks 18,401 13,841 9,652 4,189 4,560 67 All other 8,522 8,009 4,328 3,681 513 68 Total nontransaction accounts 1,495,876 1,058,293 868,312 189,982 437,583 69 Individuals, partnerships, and corporations 1,397,600 991,157 812,443 178,714 406,443 70 U.S. government 1,285 1,086 1,044 42 200 71 States and political subdivisions in the United States 81,193 54,479 45,683 8,7% 26,713 72 Commercial banks in the United States 11,158 8,4% 6,458 2,038 2,663 73 Other depository institutions in the United States 3,047 2,079 1,932 146 %9 74 All other 1,593 997 752 245 5% Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.22—Continued Members IItteemm TToottaall mmee NN mm oo bb nn ee -- rrss Total National State 75 Federal funds purchased and securities sold under agreements to repurchase12 261,917 223,654 170,302 53,353 38,263 76 Federal funds purchased 32,072 23,240 19,629 3,611 8,833 77 Securities sold under agreements to repurchase 31,990 15,776 12,784 2,993 16,213 78 Demand notes issued to the U.S. Treasury 31,090 28,252 21,168 7,085 2,838 79 Other borrowed money 84,045 66,436 55,178 11,258 17,609 80 Banks liability on acceptances executed and outstanding 24,740 23,575 17,982 5,593 1,164 81 Notes and debentures subordinated to deposits 2,564 1,650 1,527 124 914 82 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 15,706 12,701 10,559 2,141 3,006 83 Remaining liabilities 89,128 74,940 54,356 20,584 14,188 84 Total equity capital9 205,491 146,492 114,095 32,398 58,999 MEMO 85 Assets held in trading accounts 20,239 19,581 12,986 6,595 658 86 U.S. Treasury securities 10,298 9,947 5,548 4,399 350 87 U.S. government agency corporation obligations 2,481 2,452 1,985 467 29 88 Securities issued by states and political subdivisions in the United States 1,095 1,058 870 188 37 89 Other bonds, notes, and debentures 36 16 13 3 20 90 Certificates of deposit 999 995 949 46 4 91 Commercial paper 49 49 49 0 0 92 Bankers acceptances 1,888 1,824 1,137 687 64 93 Other 3,066 2,977 2,176 801 89 94 Total individual retirement accounts (IRA) and Keogh plan accounts 104,744 74,867 62,083 12,784 29,877 95 Total brokered deposits 61,926 46,894 38,918 7,976 15,032 96 Total brokered retail deposits 25,154 15,871 12,601 3,271 9,283 97 Issued in denominations of $100,000 or less 11,116 5,429 4,852 577 5,686 98 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 14,039 10,442 7,748 2,694 3,597 Savings deposits 99 Money market deposit accounts (MMDAs) 326,377 245,503 200,736 44,767 80,874 100 Other savings deposits 182,423 129,114 98,715 30,399 53,309 101 Total time deposits of less than $100,000 595,653 394,319 332,136 62,183 201,334 102 Time certificates of deposit of $100,000 or more 354,215 258,009 216,223 41,786 96,206 103 Open-account time deposits of $100,000 or more 37,208 31,349 20,501 10,847 5,860 104 All NOW accounts (including Super NOW) 183,894 127,546 107,142 20,404 56,347 105 Total time and savings deposits 1,685,471 1,189,159 978,327 210,832 496,312 Quarterly averages 106 Total loans 11,,771166,,666699 11,,228800,,888866 11,,004499,,771199 223311,,116677 443355,,778833 107 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 192,532 133,467 111,136 22,332 59,065 Nontransaction accounts 108 Money market deposit accounts (MMDAs) 327,477 244,705 200,628 44,077 82,772 109 Other savings deposits 182,600 128,970 98,903 30,068 53,629 110 Time certificates of deposit of $100,000 or more 351,912 256,666 214,615 42,051 94,895 Ill All other time deposits 619,377 415,155 344,223 70,932 204,221 112 Number of banks 12,912 5,312 4,276 1,036 7,600 1. Effective Mar. 31, 1984, the report of condition was substantially revised for refers to those respondents whose assets, as of June 30 of the previous calendar commercial banks. Some of the changes are as follows: (1) Previously, banks with year, were less than $100 million. (These respondents filed the FFIEC 034 call international banking facilities (IBFs) that had no other foreign offices were report.) considered domestic reporters. Beginning with the Mar. 31, 1984 call report these 6. Since the domestic portion of allowances for loan and lease losses and banks are considered foreign and domestic reporters and must file the foreign and allocated transfer risk reserve are not reported for banks with foreign offices, the domestic report of condition; (2) banks with assets greater than $1 billion have components of total assets (domestic) will not add to the actual total (domestic). additional items reported; (3) the domestic office detail for banks with foreign 7. Since the foreign portion of demand notes issued to the U.S. Treasury is not offices has been reduced considerably; and (4) banks with assets under $25 million reported for banks with foreign offices, the components of total liabilities (foreign) have been excused from reporting certain detail items. will not add to the actual total (foreign). 2. The "n.a." for some of the items is used to indicate the lesser detail available 8. The definition of 'all other' varies by report form and therefore by column in from banks without foreign offices, the inapplicability of certain items to banks this table. See the instructions for more detail. that have only domestic offices and/or the absence of detail on a fully consolidated 9. Equity capital is not allocated between the domestic and foreign offices of basis for banks with foreign offices. banks with foreign offices. 3. All transactions between domestic and foreign offices of a bank are reported 10. Only the domestic portion of federal funds sold and securities purchased in "net due from" and "net due to." All other lines represent transactions with under agreements to resell are reported here, therefore, the components will not parties other than the domestic and foreign offices of each bank. Since these add to totals for this item. intraoffice transactions are nullified by consolidation, total assets and total 11. "Acceptances of other banks" is not reported by domestic respondents less liabilities for the entire bank may not equal the sum of assets and liabilities than $300 million in total assets, therefore the components will not add to totals for respectively, of the domestic and foreign offices. this item. 4. Foreign offices include branches in foreign countries, Puerto Rico, and in 12. Only the domestic portion of federal funds purchased and securities sold U.S. territories and possessions; subsidiaries in foreign countries; all offices of are reported here, therefore the components will not add to totals for this item. Edge act and agreement corporations wherever located and IBFs. 13. Components of assets held in trading accounts are only reported for banks 5. The 'over 100' column refers to those respondents whose assets, as of June with total assets of $1 billion or more; therefore the components will not add to the 30 of the previous calendar year, were equal to or exceeded $100 million. (These totals for this item. respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Board of Governors ALAN GREENSPAN, Chairman MARTHA R. SEGER MANUEL H. JOHNSON, Vice Chairman WAYNE D. ANGELL OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director BOB STAHLY MOORE, Special Assistant to the Board CHARLES J. SIEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser LEGAL DIVISION DONALD B. ADAMS, Assistant Director PETER HOOPER III, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel KAREN H. JOHNSON, Assistant Director RICHARD M. ASHTON, Associate General Counsel RALPH W. SMITH, JR., Assistant Director OLIVER IRELAND, Associate General Counsel RLCKI R. TLGERT, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS SCOTT G. ALVAREZ, Assistant General Counsel MARYELLEN A. BROWN, Assistant to the General Counsel MICHAEL J. PRELL, Director EDWARD C. ETTIN, Deputy Director OFFICE OF THE SECRETARY THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director DAVID J. STOCKTON, Associate Director WILLIAM W. WILES, Secretary MARTHA BETHEA, Deputy Associate Director JENNIFER J. JOHNSON, Associate Secretary PETER A. TINSLEY, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary MYRON L. KWAST, Assistant Director PATRICK M. PARKINSON, Assistant Director MARTHA S. SCANLON, Assistant Director DIVISION OF CONSUMER JOYCE K. ZLCKLER, Assistant Director AND COMMUNITY AFFAIRS LEVON H. GARABEDIAN, Assistant Director (Administration) GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director ELLEN MALAND, Assistant Director DIVISION OF MONETARY AFFAIRS DOLORES S. SMITH, Assistant Director DONALD L. KOHN, Director DAVID E. LLNDSEY, Deputy Director BRIAN F. MADIGAN, Assistant Director DIVISION OF BANKING RICHARD D. PORTER, Assistant Director SUPERVISION AND REGULATION NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM TAYLOR, Staff Director DON E. KLINE, Associate Director OFFICE OF THE INSPECTOR GENERAL FREDERICK M. STRUBLE, Associate Director WILLIAM A. RYBACK, Deputy Associate Director BRENT L. BOWEN, Inspector General STEPHEN C. SCHEMERING, Deputy Associate Director BARRY R. SNYDER, Assistant Inspector General RICHARD SPILLENKOTHEN, Deputy Associate Director HERBERT A. BIERN, Assistant Director JOE M. CLEAVER, Assistant Director ROGER T. COLE, Assistant Director JAMES I. GARNER, Assistant Director JAMES D. GOETZINGER, Assistant Director MICHAEL G. MARTINSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 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. RLGGS, Assistant Director DIVISION OF APPLICATIONS DEVELOPMENT AND STATISTICAL SERVICES WILLIAM R. JONES, Director RICHARD C. STEVENS, Assistant Director ROBERT J. ZEMEL, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Bulletin • January 1990 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman E. GERALD CORRIGAN, Vice Chairman WAYNE D. ANGELL W. LEE HOSKINS JOHN P. LA WARE EDWARD G. BOEHNE MANUEL H. JOHNSON MARTHA R. SEGER ROBERT H. BOYKIN EDWARD W. KELLEY, JR. GARY H. STERN ALTERNATE MEMBERS ROBERT P. BLACK SILAS KEEHN JAMES H. OLTMAN ROBERT P. FORRESTAL ROBERT T. PARRY 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

A81 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

A82 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 System, Washington, D.C. 20551 or telephone (202) 452- each. 3244. When a charge is indicated, payment should accom- WELCOME TO THE FEDERAL RESERVE. MARCH 1989. 14 PP. pany request and be made payable to the Board of Governors PROCESSING AN APPLICATION THROUGH THE FEDERAL REof the Federal Reserve System. Payment from foreign resi- SERVE SYSTEM. August 1985. 30 pp. dents should be drawn on a U.S. bank. INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. 440 pp. $9.00 each. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. TIONS. 1984. 120 pp. December 1986. 264 pp. $10.00 each. ANNUAL REPORT. ANNUAL REPORT: BUDGET REVIEW, 1988-89. Federal Reserve Bulletin. Monthly. $25.00 per year or $2.50 each in the United States, its possessions, Canada, and CONSUMER EDUCATION PAMPHLETS Mexico. Elsewhere, $35.00 per year or $3.00 each. Short pamphlets suitable for classroom use. Multiple copies BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint are available without charge. of Part I only) 1976. 682 pp. $5.00. ANNUAL STATISTICAL DIGEST 1974-78. 1980. 305 pp. $10.00 per copy. Consumer Handbook on Adjustable Rate Mortgages 1981. 1982. 239 pp. $ 6.50 per copy. Consumer Handbook to Credit Protection Laws 1982. 1983. 266 pp. $ 7.50 per copy. Federal Reserve Glossary 1983. 1984. 264 pp. $11.50 per copy. A Guide to Business Credit and the Equal Credit Opportunity 1984. 1985. 254 pp. $12.50 per copy. Act 1985. 1986. 231 pp. $15.00 per copy. A Guide to Federal Reserve Regulations 1986. 1987. 288 pp. $15.00 per copy. How to File A Consumer Credit Complaint 1987. 1988. 272 pp. $15.00 per copy. Series on the Structure of the Federal Reserve System 1988. 1989. 256 pp. $25.00 per copy. The Board of Governors of the Federal Reserve System SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- The Federal Open Market Committee RIES OF CHARTS. Weekly. $30.00 per year or $.70 each in Federal Reserve Bank Board of Directors the United States, its possessions, Canada, and Mexico. Federal Reserve Banks Elsewhere, $35.00 per year or $.80 each. Organization and Advisory Committees THE FEDERAL RESERVE ACT and other statutory provisions A Consumer's Guide to Mortgage Lock-Ins affecting the Federal Reserve System, as amended A Consumer's Guide to Mortgage Settlement Costs through August 1988. 608 pp. $10.00 A Consumer's Guide to Mortgage Refinancing REGULATIONS OF THE BOARD OF GOVERNORS OF THE Making Deposits: When Will Your Money Be Available? FEDERAL RESERVE SYSTEM. When Your Home is on the Line: What You Should Know About Home Equity Lines of Credit ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address, $2.00 each. PAMPHLETS FOR FINANCIAL INSTITUTIONS INTRODUCTION TO FLOW OF FUNDS. 1980.68 pp. $1.50 each; Short pamphlets on regulatory compliance, primarily suit- 10 or more to one address, $1.25 each. able for banks, bank holding companies, and creditors. FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated at least monthly. (Requests must be prepaid.) Consumer and Community Affairs Handbook. $75.00 per Limit of 50 copies year. Monetary Policy and Reserve Requirements Handbook. The Board of Directors' Opportunities in Community Rein- $75.00 per year. vestment Securities Credit Transactions Handbook. $75.00 per year. The Board of Directors' Role in Consumer Law Compliance The Payment System Handbook. $75.00 per year. Combined Construction/Permanent Loan Disclosure and Federal Reserve Regulatory Service. 3 vols. (Contains all Regulation Z three Handbooks plus substantial additional material.) Community Development Corporations and the Federal Re- $200.00 per year. serve Rates for subscribers outside the United States are as Construction Loan Disclosures and Regulation Z follows and include additional air mail costs: Finance Charges Under Regulation Z Federal Reserve Regulatory Service, $250.00 per year. How to Determine the Credit Needs of Your Community Each Handbook, $90.00 per year. Regulation Z: The Right of Rescission Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 The Right to Financial Privacy Act 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. Signature Rules in Community Property States: Regulation B Warshawsky. November 1987. 25 pp. Signature Rules: Regulation B 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANK- Timing Requirements for Adverse Action Notices: Regula- ING MARKETS, by James V. Houpt. May 1988. 47 pp. tion B 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR What An Adverse Action Notice Must Contain: Regulation B THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. Understanding Prepaid Finance Charges: Regulation Z Porter, and David H. Small. April 1989. 28 pp. 158. THE ADEQUACY AND CONSISTENCY OF MARGIN RE- QUIREMENTS IN THE MARKETS FOR STOCKS AND DE- RIVATIVE PRODUCTS, by Mark J. Warshawsky with the STAFF STUDIES: Summaries Only Printed in the assistance of Dietrich Earnhart. September 1989. 23 pp. Bulletin Studies and papers on economic and financial subjects that REPRINTS OF BULLETIN ARTICLES are of general interest. Requests to obtain single copies of the full text or to be added to the mailing list for the series Most of the articles reprinted do not exceed 12 pages. may be sent to Publications Services. Limit of 10 copies Staff Studies 114-145 are out of print. Foreign Experience with Targets for Money Growth. 10/83. Intervention in Foreign Exchange Markets: A Summary of Ten Staff Studies. 11/83. 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF A Financial Perspective on Agriculture. 1/84. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by Thomas F. Brady. November 1985. 25 pp. Survey of Consumer Finances, 1983. 9/84. Bank Lending to Developing Countries. 10/84. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) Survey of Consumer Finances, 1983: A Second Report. INDEXES OF THE MONETARY AGGREGATES, by Helen T. Farr and Deborah Johnson. December 1985. 42 pp. 12/84. Union Settlements and Aggregate Wage Behavior in the 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF 1980s. 12/84. THE ECONOMIC RECOVERY TAX ACT: SOME SIMULA- TION RESULTS, by Flint Bray ton and Peter B. Clark. The Thrift Industry in Transition. 3/85. December 1985. 17 pp. A Revision of the Index of Industrial Production. 7/85. Financial Innovation and Deregulation in Foreign Industrial 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN BANKING BEFORE AND AFTER ACQUISITION, by Countries. 10/85. Stephen A. Rhoades. April 1986. 32 pp. Recent Developments in the Bankers Acceptance Market. 150. STATISTICAL COST ACCOUNTING MODELS IN BANK- 1/86. The Use of Cash and Transaction Accounts by American ING: A REEXAMINATION AND AN APPLICATION, by John T. Rose and John D. Wolken. May 1986. 13 pp. Families. 2/86. Financial Characteristics of High-Income Families. 3/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT Prices, Profit Margins, and Exchange Rates. 6/86. PRICING FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice P. White, Paul F. O'Brien, and Mary M. Agricultural Banks under Stress. 7/86. McLaughlin. January 1987. 30 pp. Foreign Lending by Banks: A Guide to International and U.S. Statistics. 10/86. 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A REVIEW OF THE LITERATURE, by Mark J. Warshawsky. Recent Developments in Corporate Finance. 11/86. April 1987. 18 pp. Measuring the Foreign-Exchange Value of the Dollar. 6/87. 153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and Changes in Consumer Installment Debt: Evidence from the Alice P. White. September 1987. 14 pp. 1983 and 1986 Surveys of Consumer Finances. 10/87. Home Equity Lines of Credit. 6/88. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF U.S. International Transactions in 1988. 5/89. PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES, by Glenn B. Canner and James T. Fergus. Mutual Recognition: Integration of the Financial Sector in the October 1987. 26 pp. European Community. 9/89 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Index to Statistical Tables References are to pages A3-A77 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 Turnover, 15 Assets and liabilities (See also Foreigners) Depository institutions Banks, by classes, 18-20, 72-77 Reserve requirements, 8 Domestic finance companies, 36 Reserves and related items, 3, 4, 5, 12 Federal Reserve Banks, 10 Deposits (See also specific types) Financial institutions, 26 Banks, by classes, 3, 18-20, 21, 73, 75, 77 Foreign banks, U.S. branches and agencies, 21 Federal Reserve Banks, 4, 10 Automobiles Turnover, 15 Consumer installment credit, 39, 40 Discount rates at Reserve Banks and at foreign central Production, 49, 50 banks and foreign countries (See Interest rates) Discounts and advances by Reserve Banks (See Loans) BANKERS acceptances, 9, 23, 24 Dividends, corporate, 35 Bankers balances, 18-20, 72, 74, 76. (See also Foreigners) Bonds (See also U.S. government securities) New issues, 34 EMPLOYMENT, 47 Rates, 24 Eurodollars, 24 Branch banks, 21, 57 Business activity, nonfinancial, 46 FARM mortgage loans, 38 Business expenditures on new plant and equipment, 35 Federal agency obligations, 4, 9, 10, 11, 31, 32 Business loans (See Commercial and industrial loans) Federal credit agencies, 33 Federal finance CAPACITY utilization, 48 Debt subject to statutory limitation, and types and Capital accounts ownership of gross debt, 30 Banks, by classes, 18, 73, 75, 77 Receipts and outlays, 28, 29 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 28 Central banks, discount rates, 69 Treasury operating balance, 28 Certificates of deposit, 24 Federal Financing Bank, 28, 33 Commercial and industrial loans Federal funds, 6, 17, 19, 20, 21, 24, 28 Commercial banks, 16, 19, 72, 74, 76 Federal Home Loan Banks, 33 Weekly reporting banks, 19-21 Commercial banks Federal Home Loan Mortgage Corporation, 33, 37, 38 Assets and liabilities, 18-20 Federal Housing Administration, 33, 37, 38 Federal Land Banks, 38 Commercial and industrial loans, 16, 18, 19, 20, 21, 72, Federal National Mortgage Association, 33, 37, 38 74, 76 Federal Reserve Banks Consumer loans held, by type and terms, 39, 40 Condition statement, 10 Loans sold outright, 19 Discount rates (See Interest rates) Nondeposit funds, 17 U.S. government securities held, 4, 10, 11, 30 Number by classes, 73, 75, 77 Federal Reserve credit, 4, 5, 10, li Real estate mortgages held, by holder and property, 38 Federal Reserve notes, 10 Time and savings deposits, 3 Federal Savings and Loan Insurance Corporation insured Commercial paper, 23, 24, 36 institutions, 26 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 33 Construction, 46, 51 Finance companies Consumer installment credit, 39, 40 Assets and liabilities, 36 Consumer prices, 46, 48 Business credit, 36 Consumption expenditures, 53, 54 Loans, 39, 40 Corporations Paper, 23, 24 Nonfinancial, assets and liabilities, 35 Financial institutions Profits and their distribution, 35 Loans to, 19, 20, 21 Security issues, 34, 67 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 Credit unions, 26, 39. (See also Thrift institutions) Currency and coin, 18, 72, 74, 76 Flow of funds, 41, 43, 44, 45 Currency in circulation, 4, 13 Foreign banks, assets and liabilities of U.S. branches and Customer credit, stock market, 25 agencies, 21 Foreign currency operations, 10 DEBITS to deposit accounts, 15 Foreign deposits in U.S. banks, 4, 10, 19, 20 Debt (See specific types of debt or securities) Foreign exchange rates, 70 Demand deposits Foreign trade, 56 Banks, by classes, 18-21, 73, 75, 77 Foreigners Ownership by individuals, partnerships, and Claims on, 57, 59, 62, 63, 64, 66 corporations, 22 Liabilities to, 20, 56, 57, 59, 60, 65, 67, 68 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 GOLD Real estate loans—Continued Certificate account, 10 Financial institutions, 26 Stock, 4, 56 Terms, yields, and activity, 37 Government National Mortgage Association, 33, 37, 38 Type of holder and property mortgaged, 38 Gross national product, 53 Repurchase agreements, 6, 17, 19, 20, 21 Reserve requirements, 8 HOUSING, new and existing units, 51 Reserves Commercial banks, 18, 73 INCOME, personal and national, 46, 53, 54 Depository institutions, 3, 4, 5, 12 Industrial production, 46, 49 Federal Reserve Banks, 10 Installment loans, 39, 40 U.S. reserve assets, 56 Insurance companies, 26, 30, 38 Residential mortgage loans, 37 Interest rates Retail credit and retail sales, 39, 40, 46 Bonds, 24 Consumer installment credit, 40 SAVING Federal Reserve Banks, 7 Flow of funds, 41, 43, 44, 45 Foreign central banks and foreign countries, 69 National income accounts, 53 Money and capital markets, 24 Savings and loan associations, 26, 38, 39, 41. (See also Mortgages, 37 Thrift institutions) Prime rate, 23 Savings banks, 26, 38, 39 International capital transactions of United States, 55-69 Savings deposits (See Time and savings deposits) International organizations, 59, 60, 62, 65, 66 Securities (See also specific types) Inventories, 53 Federal and federally sponsored credit agencies, 33 Investment companies, issues and assets, 35 Foreign transactions, 67 Investments (See also specific types) New issues, 34 Banks, by classes, 18, 19, 20, 21, 26 Prices, 25 Commercial banks, 3, 16, 18-20, 38, 72 Special drawing rights, 4, 10, 55, 56 Federal Reserve Banks, 10, 11 State and local governments Financial institutions, 26, 38 Deposits, 19, 20 Holdings of U.S. government securities, 30 LABOR force, 47 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities issued by, 19, 20, 26 Loans (See also specific types) Rates on securities, 24 Banks, by classes, 18-20 Stock market, selected statistics, 25 Commercial banks, 3, 16, 18-20, 72, 74, 76 Stocks (See also Securities) Federal Reserve Banks, 4, 5, 7, 10, 11 New issues, 34 Financial institutions, 26, 38 Prices, 25 Insured or guaranteed by United States, 37, 38 Student Loan Marketing Association, 33 MANUFACTURING Capacity utilization, 48 TAX receipts, federal, 29 Production, 48, 50 Thrift institutions, 3. (See also Credit unions and Savings Margin requirements, 25 and loan associations) Member banks (See also Depository institutions) Time and savings deposits, 3, 13, 17, 18, 19, 20, 21, 73, 75, Federal funds and repurchase agreements, 6 77 Reserve requirements, 8 Trade, foreign, 56 Mining production, 50 Treasury cash, Treasury currency, 4 Mobile homes shipped, 51 Treasury deposits, 4, 10, 28 Monetary and credit aggregates, 3, 12 Treasury operating balance, 28 Money and capital market rates, 24 UNEMPLOYMENT, 47 Money stock measures and components, 3, 13 U.S. government balances Mortgages (See Real estate loans) Commercial bank holdings, 18, 19, 20 Mutual funds, 35 Treasury deposits at Reserve Banks, 4, 10, 28 Mutual savings banks (See Thrift institutions) U.S. government securities Bank holdings, 18-20, 21, 30, 72, 74, 76 NATIONAL defense outlays, 29 Dealer transactions, positions, and financing, 32 National income, 53 Federal Reserve Bank holdings, 4, 10, 11, 30 Foreign and international holdings and transactions, 10, OPEN market transactions, 9 30, 68 Open market transactions, 9 PERSONAL income, 54 Outstanding, by type and holder, 26, 30 Prices Rates, 24 Consumer and producer, 46, 52 U.S. international transactions, 55-69 Stock market, 25 Utilities, production, 50 Prime rate, 23 Producer prices, 46, 52 VETERANS Administration, 37, 38 Production, 46, 49 Profits, corporate, 35 WEEKLY reporting banks, 19-21 Wholesale (producer) prices, 46, 52 REAL estate loans Banks, by classes, 16, 19, 20, 38, 74 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 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 Richard N. Cooper Richard F. Syron Richard L. Taylor 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 To be announced Charles A. Cerino1 Pittsburgh 15230 Robert P. Bozzone Harold J. Swart1 RICHMOND* 23219 Hanne M. Merriman Robert P. Black Anne Marie Whittemore Jimmie R. Monhollon Baltimore 21203 John R. Hardesty, Jr. Robert D. McTeer, Jr.1 Charlotte 28230 William E. Masters Albert D. Tinkelenberg1 Culpeper Communications John G. Stoides1 and Records Center 22701 ATLANTA 30303 Larry L. Prince Robert P. Forrestal Edwin A. Huston Jack Guynn Donald E. Nelson Birmingham 35283 A. G. Trammell Fred R. Herr1 Jacksonville 32231 Lana Jane Lewis-Brent James D. Hawkins1 Miami 33152 Victoria B. Jackson James T. Curry III Nashville 37203 Caroline G. Theus Melvin K. Purcell New Orleans 70161 Robert D. Apelgren Robert J. Musso CHICAGO* 60690 Marcus Alexis Silas Keehn Charles S. McNeer Daniel M. Doyle Detroit 48231 Phyllis E. Peters Roby L. Sloan1 ST. LOUIS 63166 H. Edwin Trusheim Thomas C. Melzer Robert H. Quenon James R. Bowen Little Rock 72203 To be announced John F. Breen1 Louisville 40232 To be announced Howard Wells Memphis 38101 To be announced Ray Laurence MINNEAPOLIS 55480 Michael W. Wright Gary H. Stern Delbert W. Johnson Thomas E. Gainor Helena 59601 J. Frank Gardner John D. Johnson1 KANSAS CITY 64198 Fred W. Lyons, Jr. Roger Guffey Burton A. Dole, Jr. Henry R. Czerwinski Denver 80217 Barbara B. Grogan Kent M. Scott Oklahoma City 73125 John F. Snodgrass David J. France Omaha 68102 Herman Cain Harold L. Shewmaker DALLAS 75222 Bobby R. Inman Robert H. Boykin Hugh G. Robinson William H.Wallace Tony J. Salvaggio1 El Paso 79999 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith, III1 San Antonio 78295 To be announced Thomas H. Robertson SAN FRANCISCO 94120 Robert F. Erburu Robert T. Parry Carolyn S. Chambers Carl E. Powell Los Angeles 90051 Yvonne B. Burke Thomas C. Warren2 Portland 97208 William A. Hilliard Angelo S. Carella1 Salt Lake City 84125 Don M. Wheeler E. Ronald Liggett1 Seattle 98124 Bruce R. Kennedy Gerald R. Kelly1 *Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 1. Senior Vice President. Digitized for FRA2S. EERxe cutive Vice President. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Helen* Minneapolis Detroit Chicago Cleffi'jt \S'"L.keCi,y Omaha' Kansas City Lonisville 't. Louis •tfichm?JL •k»rlott*j Oklahoma City. '"ge/ts .ittle Rock Birminghai j A h t ® la nta > Dallas® Houston! ian Antonio ALASKA LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT Three booklets on the mortgage process are also PUBLICATIONS available: A Consumer's Guide to Mortgage Refinancings, A Consumer's Guide to Mortgage Lock-Ins, and The Federal Reserve Board publishes a series of A Consumer's Guide to Mortgage Settlement Costs. pamphlets covering individual credit laws and topics, These booklets were prepared in conjunction with the as pictured below. The series includes such subjects as Federal Home Loan Bank Board and in consultation how the Equal Credit Opportunity Act protects wom- with other federal agencies and trade and consumer en against discrimination in their credit dealings, how groups. to use a credit card, and how to resolve a billing error. Copies of consumer publications are available free The Board also publishes the Consumer Handbook of charge from Publications Services, Mail Stop 138, to Credit Protection Laws, a complete guide to con- Board of Governors of the Federal Reserve System, sumer credit protections. This 44-page booklet ex- Washington, D.C. 20551. Multiple copies for classplains how to use the credit laws to shop for credit, room use are also available free of charge. apply for it, keep up credit ratings, and complain about an unfair credit. 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