Federal Reserve Bulletin, 1990-06

VOLUME 76 • NUMBER 6 • JUNE 1990 FEDERAL RESERVE " 1; £ \u 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 411 RECENT DEVELOPMENTS IN case in determining that the nonbanking INDUSTRIAL CAPACITY AND restrictions of that act do not apply to the UTILIZATION direct activities of holding company subsidiary banks, before the Subcommittee on The Federal Reserve has revised and re- Financial Institutions Supervision, Regulastructured its estimates of industrial capaction and Insurance of the House Committee ity and utilization. This article presents the on Banking, Finance and Urban Affairs, new estimates, reviews capacity develop- April 4, 1990. ments by sector, and discusses the evolution, the methodology, and the new structure of the measures. 448 ANNOUNCEMENTS Changes in statistical releases on industrial 436 INDUSTRIAL PRODUCTION AND production and capacity utilization. CAPACITY UTILIZATION Uniform operating hours established for Industrial production rose 0.7 percent in Fedwire funds transfer and book-entry se- March after having increased 0.8 percent in curities transfer services. February; industrial capacity utilization increased 0.4 percentage point in March to Proposed revisions to Regulation P; pro- 83.3 percent. posal that the Federal Reserve Banks notify by telephone all off-line depository institutions of the receipt of incoming Fedwire 439 STATEMENTS TO THE CONGRESS funds transfers. Alan Greenspan, Chairman, Board of Governors, describes the global environment in Publication of the 76th Annual Report, which U.S. financial firms are likely to be 1989. operating over the foreseeable future; assesses how well U.S. banks are competing 451 LEGAL DEVELOPMENTS in the new globally competitive setting; and then discusses some policy implications, Various bank holding company, bank serbefore the Task Force on the International vice corporation, and bank merger orders; Competitiveness of U.S. Financial Institu- and pending cases. tions, Subcommittee on Financial Institutions of the House Committee on Banking, Finance and Urban Affairs, April 4, 1990. AI FINANCIAL AND BUSINESS STATISTICS These tables reflect data available as of 444 Manuel H. Johnson, Vice Chairman, Board April 26, 1990. of Governors, presents the views of the Board on the implications of the decision of the U.S. Court of Appeals upholding the A3 Domestic Financial Statistics Board's order in the Merchants National case and says that the Board believes that it A46 Domestic Nonfinancial Statistics has correctly interpreted the Bank Holding Company Act in the Merchants National A55 International Statistics Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 GUIDE TO TABULAR PRESENTATION, A88 SCHEDULE OF RELEASE DATES FOR STATISTICAL RELEASES, AND SPECIAL PERIODIC RELEASES TABLES A90 INDEX TO STATISTICAL TABLES A82 BOARD OF GOVERNORS AND STAFF A84 FEDERAL OPEN MARKET COMMITTEE A92 FEDERAL RESERVE BANKS, AND STAFF; ADVISORY COUNCILS BRANCHES, AND OFFICES A86 FEDERAL RESERVE BOARD PUBLICATIONS A93 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization Richard D. Raddock, of the Board's Industrial Both the capacity and production indexes are Output Section in the Division of Research and now expressed as percentages of output in 1987. Statistics, prepared this article. The author and (See the appendix for a description of the meth- Charles E. Gilbert, assisted by Tory M. Wolff, odology.) are responsible for the revised estimates. The capacity index for an individual industry represents a realistically sustainable maximum The Board of Governors of the Federal Reserve level of output for that industry, rather than some System has revised and restructured its estimates higher, unsustainable, short-term maximum. of industrial capacity and capacity utilization Thus, utilization rates of 100 percent have been from January 1967 to the present. Like the earlier reached or even temporarily exceeded in specific estimates, the revised ones show that utilization industries, particularly in materials industries. peaked in late 1988-early 1989 and that pressures The assumption for an individual establishment on capacity have diminished since then because is that plant and equipment are fixed but that output has leveled off while capacity has contin- labor and materials are available. At the macro ued to expand. level, however, all industries do not simultane- The new estimates, made in conjunction with a ously operate their fixed plant and equipment revision of the index of industrial production, (capital) at 100 percent of capacity because cover manufacturing, mining, and utilities in peak demands for all goods are not synchrogreater industry detail than before. The separate nous and because shortages of skilled labor and set of estimates for industrial materials has been materials create bottlenecks. Before 1967, the eliminated, and many of its former components have been included in the new estimates for 1. Utilization of capacity in total industry mining and the primary-processing component of manufacturing. Each utilization rate is the ratio of a seasonally adjusted industrial production (output) index to a related capacity index (chart 1). The capacity indexes are developed from a variety of capacity, utilization, and related data and, in regard to coverage, weights, and other aspects, are designed specifically to be used with the industrial production indexes. Indeed, when production indexes are substantially revised or rebased, the related capacity index must be revised or rebased as well so that appropriate utilization rates can be calculated.1 1. The 1990 revision of the production index, which covers the period since 1977, is described in Kenneth Armitage and Dixon A. Tranum, "Industrial Production: 1989 Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 Federal Reserve Bulletin • June 1990 overall manufacturing rate slightly exceeded 90 Additional estimates at the two-digit SIC level percent at peaks during the Korean and Viet- of detail, based on the Census Survey of Plant nam wars; since 1967, the utilization for total Capacity, were added in 1985. In their present industry has remained under 90 percent. expanded form, the manufacturing estimates depend on both broad surveys of manufacturing utilization rates and on narrower surveys for THE NEW SERIES STRUCTURE particular industries conducted by trade associations and governmental agencies.3 Particular Central to the revision was a restructuring of care has been taken to ensure consistency over the capacity estimates for industries within time when new data sources have been added manufacturing. Previously, manufacturing ca- so that the estimated utilization rates will indipacity had been estimated largely at the level of cate the relative pressure on capacity over a major two-digit industry groups of the Standard cycle and among cycles appropriately. Industrial Classification (SIC). Thus, for exam- Besides the individual materials series that are ple, only one capacity series existed for non- now in manufacturing, sixteen former materials electrical machinery (SIC 35), which is a large series are incorporated in the category of mining. and heterogeneous industry group. In this revi- Because manufacturing and mining now include sion, SIC 35 comprises three series. Total man- so many of the materials series, the Federal ufacturing, which previously comprised twen- Reserve determined that the separate and indety-four individual series, now has fifty-four pendently estimated set of materials measures (table A.l). could be eliminated without significant loss of The greater number of series improves the information. The new structure integrates the estimation and extrapolation of the capacity in- detailed information on the capacity to produce dexes in two major ways. First, the nonelectrical materials into the measures for total industry in machinery group and several large two-digit in- a consistent manner that was previously lackdustry groups have been split into component ing. series that display different cyclical patterns and Whereas the general public has focused on growth trends of output. Splitting the major the overall utilization rate, specialists have ofgroups in this way allows the capture of more ten focused on those primary-processing or information for deriving capacity estimates. Sec- materials-producing industries for which physond, the detailed physical volume measures of ical quantity measures of capacity, output, and capacity previously used to estimate a number of utilization are available, including raw steel, major materials have now been fully and explic- aluminum, paper and pulp, plastics resins, and itly incorporated in the new manufacturing esti- others. For many of these industries, high or mates. This incorporation of measurable physical rising rates of utilization during an expansion, data improves the quality of the estimates. such as in 1988, have been associated with The disaggregation of the manufacturing esti- notable increases in prices or profit margins.4 mates marks another step in their evolution, Users of the new Federal Reserve Statistical which began in the 1960s with only two manufacturing components—primary and advanced processing. In the 1970s, manufacturing was ex- 3. Table A.l includes the sources of the estimates. panded to fifteen components that conformed to 4. A recent study examining the relationship between manufacturing capacity utilization and producer prices found the industry detail on capacity utilization conthat, in several two-digit industries, movements in the real tained in the McGraw-Hill Spring Survey of level of producer prices respond positively to changes in Business Plans for New Plants and Equipment.2 capacity utilization. Without exception, these industries produce materials and supplies, such as textiles; paper; chemicals; clay, stone, and glass; and primary metals. See William Kan, Reva Krieger, and P.A. Tinsley, "The Long and Short 2. This pioneering survey, which was an important source of Industrial Strength Pricing," Finance and Economics for the Federal Reserve estimates of manufacturing capacity Discussion Series 99 (Board of Governors of the Federal and utilization, was begun by Douglas Greenwald more than Reserve System, Divisions of Research and Statistics and forty years ago. Monetary Affairs, November 1989). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 413 2. Revised and earlier utilization rates Percent of capacity Mining Earlier Manufacturing Utilities M I B I I I B I I I B I M B M IB I 1 I • I I I • 1 1 I • l I l • I I I • 1970 1975 1980 1985 1990 1970 1975 1980 1985 1990 Release G.17 (419) "Industrial Production and For recent years, the new utilization estimates Capacity Utilization," will find explicit represen- for both mines and utilities are higher than the tation of more of these industries in the tables on old estimates but remain well below historical capacity and utilization. highs. The new manufacturing rate, on average, is a little higher as well. During 1989, however, the manufacturing rate now appears to have REVISIONS OF UTILIZATION AND CAPACITY declined a bit more from a slightly higher peak. As a result, by late 1989-early 1990, the new Overall, the revisions of utilization and of operating rate for manufacturing, like the old growth of industrial capacity are relatively rate, was nearly 82!/2 percent. The main differsmall and, except for showing a shallower re- ence in cyclical patterns in manufacturing occurs cession in 1982, do not change the basic cyclical at the 1982 low, now 70 percent compared with 68 story indicated by the previous data (chart 2). percent previously shown. The smaller decline in On average over 1967-89, the operating rate has the revised index of manufacturing output during been revisfed up Vi percentage point to 82.2 that recession largely accounts for this change. percent. The recent cyclical high of 85 percent Growth in industrial capacity averaged 3 perin April 1989 also is higher than previously cent a year from 1967 to 1989, about the same as shown, but it remains noticeably below the previously shown, with growth having slowed upward-revised peaks of the 1970s—89 percent progressively after the energy crises and recesin the fall of 1973 and 87 percent in early 1979 sions of the early 1970s and 1980s from more than (table 1). After the April 1989 peak, the new 4 percent a year in the late 1960s to only about 2 production and utilization figures weaken a bit percent in 1986 and 1987 (table 2). After 1987, more than the old estimates; nevertheless, the yearly capacity growth accelerated, to about 2Vi revised utilization rate for all industry in late percent recently—less of an acceleration than the 1989 and early 1990 averages about 83.2 per- old estimates showed. A larger decline in the cent, VI percentage point higher than was pre- capacity to extract crude oil, a marked slowing viously shown and still about a percentage point (albeit from high rates) in growth in some highabove its historical average. technology industries, and a smaller rebound in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 Federal Reserve Bulletin • June 1990 capacity growth in primary-processing indus- Capital Stock and Capacity tries within manufacturing largely account for the more modest response to the recent high Investment spending and related capital stock utilization rates. estimates are sometimes used to make inferences 1. Revised capacity utilization rates, by major industry group, 1967-89' Percent of capacity, seasonally adjusted 1967-89 1973 1975 1978-79 1982 1988-89 IItteemm average high low high low high 11998899QQ44 Total industry 82.2 89.2 72.6 87.3 71.8 85.0 83.5 (.5) (.6) (.5) (.3) (2.3) (.7) (.4) MMaannuuffaaccttuurriinngg 81.5 88.9 70.8 87.3 70.0 85.1 82.9 (.6) (1.2) (.9) (.8) (2.0) (.4) (-.1) Primary processing 82.3 92.2 68.9 89.7 66.8 89.0 85.9 Advanced processing 81.1 87.5 72.0 86.3 71.4 83.6 81.6 Durable manufacturing 79.5 88.8 68.5 86.9 65.0 84.0 81.3 Lumber and products 82.7 90.1 62.2 87.6 60.9 91.2 85.7 Furniture and fixtures 82.7 96.8 64.3 86.6 68.9 88.3 84.8 Stone, clay, and glass products 78.3 89.2 67.2 87.0 63.1 86.4 84.1 Primary metals 79.8 100.6 66.2 102.4 46.8 91.6 83.0 Iron and steel 79.4 105.8 66.6 110.4 38.3 92.0 79.5 Raw steel 78.8 102.7 66.0 95.7 35.2 94.1 78.0 Nonferrous metals 80.8 92.9 61.3 90.5 62.2 95.0 88.5 Copper smelting and refining 71.2 92.1 55.0 76.6 42.1 97.9 80.9 Aluminum ingot 88.2 95.7 73.3 97.6 58.6 103.5 99.0 Fabricated metal products 77.7 87.8 65.9 83.9 62.9 85.1 82.0 Nonelectrical machinery 81.3 96.4 74.5 92.1 64.9 83.5 81.2 Office and computing machines 82.1 90.9 71.7 90.3 63.1 85.2 79.7 Nonelectrical excluding computers 79.8 95.2 73.4 93.6 59.6 83.8 82.0 Electrical machinery 80.4 87.8 63.8 89.4 71.1 83.1 81.0 Transportation equipment 75.1 83.8 58.2 82.7 56.7 84.6 78.0 Motor vehicles and parts 76.7 93.4 51.1 93.0 44.5 85.5 75.1 Autos and light trucks n.a. n.a. n.a. 92.2 40.1 83.6 71.1 Aerospace and miscellaneous transportation equipment... 75.3 77.0 66.6 80.5 66.9 86.1 80.6 Instruments 83.1 89.9 75.2 92.5 79.0 83.9 80.1 Miscellaneous manufactures 75.9 82.9 65.4 78.7 66.1 85.5 84.5 Nondurable manufacturing 83.7 87.9 71.8 87.0 76.9 86.7 85.0 Food and kindred products 82.5 86.0 78.1 84.3 78.8 83.0 82.6 Textile mill products 86.0 92.0 60.4 90.5 73.8 91.2 86.9 Apparel products 81.6 84.2 61.9 86.0 78.9 84.2 81.8 PPaappeerr aanndd pprroodduuccttss 89.7 96.9 69.0 94.2 82.0 95.8 92.0 PPuullpp aanndd ppaappeerr 92.2 97.1 70.0 98.2 82.1 97.7 93.5 Printing and publishing 87.2 89.7 75.2 92.2 83.0 90.4 86.8 Chemicals and products 79.8 87.9 69.9 85.1 70.1 86.8 82.5 Chemicals in primary processing 82.9 94.0 66.1 89.8 68.9 91.7 88.4 Plastics materials 85.7 102.0 50.6 90.9 63.4 98.9 85.8 Synthetic fibers 84.2 93.8 51.7 98.5 64.4 94.5 81.9 Chemicals in advanced processing 77.2 82.0 72.1 82.4 69.8 83.2 78.7 Petroleum products 85.1 96.7 81.1 89.5 68.2 90.3 88.3 Rubber and plastics products 83.9 94.0 58.8 90.4 73.5 90.4 87.2 Leather and products 82.3 81.3 67.7 92.4 78.1 88.4 85.7 MMiinniinngg 87.3 94.4 88.4 95.2 80.6 87.2 86.7 (1.0) (1.6) (.6) (.6) (3.7) (2.7) (2.9) Metal mining 76.9 90.3 74.4 87.6 43.4 87.2 82.5 Coal 87.3 90.8 82.5 95.6 75.4 94.4 88.3 Oil and gas extraction 87.9 96.6 91.9 96.2 82.5 86.6 85.8 Oil and gas well drilling 74.0 93.0 95.3 104.3 50.8 58.8 57.7 Stone and earth minerals 84.6 93.7 73.3 93.3 63.3 94.3 93.2 Utilities 86.8 95.6 82.5 88.3 76.2 92.3 88.0 (.4) (0) (-.4) (-.2) (-1.8) (5.0) (4.7) Electric 89.0 99.0 82.7 88.3 78.7 96.2 92.6 Gas 82.9 93.2 81.0 91.7 70.2 80.3 73.8 1. Differences from the unrevised index are in parentheses below the re- generally bottomed out. The monthly highs and lows are specific to each servised number. The "high" columns refer to periods in which utilization gener- ies, and all did not occur in the same month. N.a. means not available. ally peaked; the "low" columns refer to recession years in which utilization Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 415 about capacity trends. Estimates of capital part because of the capital intensity of the declinstock by the Bureau of Economic Analysis ing mining industry (chart 3). (BEA) for total manufacturing, mining, and elec- Capital stock is only one of the factors that tric and gas utilities show even more slowing determines capacity output, however, and the during the 1980s than do the capacity estimates, in relationship between capital input and capacity 2. Compound rates of growth in end-of-year capacity, by major industry group, 1967-89' Percent change Item 1966-89 1966-74 1974-82 1982-87 1987 1988 1989 TToottaall iinndduussttrryy 3.1 3.8 2.9 2.3 2.0 2.2 2.4 (-.1) (.2) (.1) (.4) (-.2) (-.3) (-.5) MMaannuuffaaccttuurriinngg 3.5 4.1 3.3 3.1 2.6 2.8 2.9 (.2) (.4) (.4) (.9) (0) (-.3) (-.5) Primary processing 2.3 4.2 1.6 .5 1.0 2.0 2.4 Advanced processing 4.1 4.0 4.2 4.3 3.3 3.2 3.2 Durable manufacturing 3.7 3.8 3.8 3.7 2.6 2.6 2.7 Lumber and products 2.3 3.1 .8 2.8 4.6 4.1 2.8 Furniture and fixtures 3.3 4.9 2.6 2.3 3.4 2.5 2.7 Stone, clay, and glass products 1.6 2.5 1.4 .7 1.0 .9II 1.3 Primary metals 0 1.8 .2 -3.7 -3.5 .9 n 1.5. Iron and steel -1.0 .6 -.1 -5.9 -5.9 I 1.3 2.1 Raw steel -1.1 .2 0 -6.0 -5.9 1.3 1.8 Nonferrous metals 1.5 3.7 .7 -.1 .4 .2 .5 Copper smelting and refining -.1 1.2 -.7 -3.1 -1.1 5.0 6.3 Aluminum ingot 1.5 5.5 1.5 -4.4 .2 1.0 .3 Fabricated metal products 1.8 3.2 1.7 .2 .2 -> .4 1.5 Nonelectrical machinery 6.8 4.7 8.8 8.5 4.0 3.5 3.6 Office and computing machines 21.2 11.7 31.6 25.2 19.0 12.1 If 10.6 Nonelectrical excluding computers 1.5 3.5 1.2 -.7 -1.3 0 .4 Electrical machinery 5.4 6.4 5.4 4.4 3.3 3.7 3.8 Transportation equipment 2.7 3.0 2.0 i 3 .4 J I 3.1 2.2 1.6 Motor vehicles and parts 2.9 4.6 1.8 2.9 3.7 1.5 0 Autos and light trucks n.a. mna- n.a. 5.9 6.0 1.4 -1.5 Aerospace and miscellaneous transportation equipment... 2.3 1.2 2.1 3.9 2.5 2.9 3.1 Instruments 6.2 7.7 5.6 5.1 6.0 5.4 5.1 Miscellaneous manufactures 2.2 4.8 .9 11*51.3 ^ 1.5 1.9 2.2 Nondurable manufacturing 3.2 4.5 2.5 2.2 2.6 i 3-i 3.3 Food and kindred products 2.8 2.9 3.0 2.2 2.2 • 2.5 2.7 Textile mill products 2.2 4.7 .8 .7 2.2 1.7 2.0 Apparel products 1.8 2.5 1.0 1.7 1.7 2.4 2.3 Paper and products 2.7 4.1 1.9 2.2 2.1 2.5 2.01 Pulp and paper 2.4 3.2 1.5 2.4 3.2 3.6 2.4 Printing and publishing 3.8 3.1 3.4 4.7 5.2 5.7 5.6 Chemicals and products 4.0 7.0 2.9 1.3 2.4 3.3 4.0 Chemicals in primary processing 3.8 7.5 2.5 -.3 1.1 4.2 4.6 Plastics materials 7.7 13.2 5.0 2.9 5.7 9.8 8.9 Synthetic fibers 4.4 9.8 2.8 -.2 1.7 • 2.9 1.0 Chemicals in advanced processing 4.2 6.5 3.4 2.4 3.3 2.8 3.6 Petroleum products 2.0 4.4 1.8 -.5 2.5 -1.2 .7 5 Rubber and plastics products 5.9 9.1 3.6 5.1 3.2 4.9 4.4 1 Leather and products -3.3 -1.2 -3.8 -5.7 -5.8 -4.6 -3.3 MMiinniinngg .2 -.3 2.2 -.9 -3.6 -3.8 -1.9 (-.4) (-.4) (0) (-.5) (-1.7) (-1.7) (-.5) Metal mining 1.4 .5 1.0 -.8 2.9 14.3 10.7 Coal 2.6 2.4 3.6 1.9 1.8 1.7 1.6 Oil and gas extraction -.4 -1.2 2.5 -1.4 -5.6 -6.8 i -4.5 Oil and gas well drilling 1.9 — .8 17.4 -7.5 -16.4 -25.5 -9.1 Stone and earth minerals 1.3 2.7 .2 .2 1.5 2.3 5.0 Utilities 3.2 6.3 2.1 1.1 1.5 u 2.2 7 1 (•1) (.8) (•1) (-.2) (0) (1.3) (-.2) Electric 4.5 8.1 3.3 1.9 2.3 2.2 .9 Gas .3 2.6 -1.0 -1.4 -.7 2.0 it i, .1 1. Differences from the unrevised index are in parentheses. N.a. means not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 Federal Reserve Bulletin • June 1990 3. Growth in capacity and capital stock output is variable over time and across indus- capacity or production. In contrast, the capital tries. New technology and capital expenditures stock declined less than did capacity for petroto promote a safer and cleaner environment, the leum refining and primary metals in the 1980s. closing of plants and the restructuring of indus- In these industries, the capacity figures incortries in the 1980s, the lengthening workweek of porate available data on permanent plant closcapital, and the shift in the composition of ings, whereas the capital stock figures incorpocapital to shorter-lived equipment have caused rate a formula for discards that does not allow the growth rates of capital stock and the Fed- for the bunching of closings that occurred. eral Reserve measures of capacity output to Because of the important theoretical and emdiffer.5 pirical differences between capacity output and For manufacturing, capital stock grew more capital input, the Federal Reserve uses the rapidly than capacity from 1967 to 1980 and capital stock figures only to refine year-to-year more slowly after 1982. In some industries, the movements in its capacity estimates and only growth of capital stock was much slower than when physical capacity data have not been that of capacity during the 1980s. In durable compiled. In the absence of such capacity data, manufactures as a whole, especially for non- it seems reasonable to assume that capacity electrical machinery, the capacity and produc- growth in an industry is positively correlated tion trends reflected the strong gains in comput- with investment spending and growth in the ers. In other industries, such as lumber and capital stock in that industry. The over-all products, apparel, and textiles (in which the levels and the long-term movements of the new looms and spindles are much more produc- Federal Reserve capacity indexes, however, tive than the old), capital stock declined while are determined primarily by production indexes production and capacity rose. For tobacco divided by utilization rate data as reported in products and fabricated metal products, how- various surveys. ever, capital stock has grown much faster than 5. In part, the differing growth rates of Federal Reserve REVIEW OF DEVELOPMENTS BY SECTOR capacity indexes and measures of the capital stock reflect changes in the service flow derived from each unit of capital. Estimates of capital service flow for major sectors of the In late 1988 and the first half of 1989, the nation's economy and for two-digit manufacturing industries have factories, mines, and utilities together operated been published in recent years by the Bureau of Labor above 84 percent of capacity, the highest rate Statistics. For a discussion of the BLS's capital service estimates and their relation to the BEA's capital stocks, see since the start of the decade. Although the Stephen D. Oliner, "The Formation of Private Business pressure on industrial capacity has lessened Capital: Trends, Recent Developments, and Measurement during the past year because of the stagnation in Issues," Federal Reserve Bulletin, vol. 75 (December 1989), pp. 771-83. industrial production, utilization remains above Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 417 the relatively low rates that prevailed from which had dropped 6 percent from 1984 to 1987, mid-1980 until early 1987. An acceleration of declined another 6V2 percent in 1988 and 1989, economic expansion after 1986 and a low rate of despite a rebound in metal mining capacity. growth of capacity contributed to the higher Oil and gas extraction, which dominates minutilization rates. ing production, is in a lengthy decline. Domestic For much of the time between 1980 and 1986, capacity to drill oil wells and extract crude oil however, an extended double-troughed reces- from those wells is declining even though the sion and adverse international terms of trade price of oil has recovered to about $20 per barrel. yielded severe financial stress and restructuring According to a survey by the Reed Tool Comin key segments of American industry. Manu- pany, the available rotary drilling rigs in the facturing utilization averaged only 77 Vi percent United States dropped 7.6 percent in 1989 to from 1981 to 1986, a low level for so long a 2,542 rigs in a continuation of a decline from a period. Overall industrial capacity grew slowly, peak of 5,644 rigs in 1982; even so, only 57 many mines and factories closed, and capacity percent of the available rigs were reported to be in some basic industries shrank sharply. actively drilling within a month of the survey. The 45 percent depreciation of the dollar This continued low utilization of the rig fleet during 1985-87 helped restore the competitive- points to a further reduction in the available ness of U.S. products, and the growth of pro- fleet in 1990 and to a continued decline in the duction picked up in 1987-88. Utilization rates U.S. capacity to pump crude oil. Such capacity rose, and reports of shortages of metals, chem- is declining not only in the older oil fields of icals, and other products of primary-processing Texas and Louisiana but also in the newer fields industries began to appear. As a result, prices, of Alaska. profits, and investment in capacity in these According to the American Petroleum Instiindustries increased. tute, most of the record 6.8 percent decline in In 1989 and early 1990, the level of industrial 1989 crude oil production was not caused by the investment, an important determinant of capac- Exxon Valdez oil spill or any other temporary ity growth, generally rose, even though manu- disruptions. The institute indicates that the unfacturing output plateaued. Lower sales and derlying annual rate of decline in production may production of motor vehicles contributed to have reached 100,000 barrels per day (bpd) lower production of steel and other related materials. This weakness was aggravated at 4. Utilization of capacity in mining industries times by limited inventory corrections by producers and distributors, who kept their stocks in line with less robust sales. Although many commodity prices fell back, continued growth of U.S. exports to a generally strong world economy supported sales and production levels in several industries. As a result, by the first quarter of 1990, the rate of capacity utilization in manufacturing had fallen only a couple of percentage points from its high a year earlier; and at present, the moderate pace of industry capacity expansion appears to be continuing. Mining Capacity utilization in mining rose in 1988-89 to a high of 87 percent, a moderate level of utilization for this series (chart 4). It was held down by a low level of oil well drilling. Mining capacity, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 Federal Reserve Bulletin • June 1990 in Alaska and more than 300,000 bpd in the other products; industrial chemicals; petroleum prodforty-eight continental states, compared with na- ucts; rubber and plastics products; lumber and tional production of 7,600,000 bpd in 1989. products; primary metals; fabricated metal Most analysts agree that the production of products; and stone, clay, glass, and concrete domestic crude oil is close to effective capacity products. and that its downtrend is likely to continue. With High levels of capacity utilization in these demand growing, imports jumped 8 percent in basic manufacturing industries often occur late in 1989 and supplied 46 percent of domestic deliv- cyclical expansions as inventory accumulation eries. Also, the American Gas Association ex- and rising demand for consumer and capital pects the excess natural gas production capabil- goods converge on materials industries. This ity—the gas "bubble"—essentially to disappear pattern appeared in late 1987, when rapid growth this year as demand continues to expand. The in production raised the utilization rate of primaryassociation estimates that the new gas wells will processing industries above 87 percent, its highagain fail to offset the declining production capa- est level since 1979. Robust production growth bility of the old wells, although the proportion of continued to outpace the 2 percent growth in drilling activity directed toward gas wells, rather capacity in 1988, and utilization in primary prothan oil wells, has increased. cessing peaked in January 1989 at 89 percent, Mining capacity outside the oil and gas indus- about as tight as it was when it peaked in 1978-79 try has been increasing. In particular, the former but less tight than it was in 1973, when an decline in metal mining capacity reversed in extraordinary range of materials was reported in 1987-89 as strong worldwide demand for metals short supply (chart 5). From late 1987 to early led to the reopening of mines such as the huge 1989, the pressure of rising production on capac- Bingham Canyon, Utah, copper-silver mine, ity in primary metals, petroleum refining and which had closed for extensive modernization industrial chemicals, paper, textile, and lumber during the period of weak demand. Shuttered industries contributed to rising commodity prices iron mines were purchased from bankrupt com- and profit margins and to an increase in capital panies and restarted. The large Red Dog zinc expenditures and the rate of capacity growth mine in Northern Alaska opened in late 1989 and (chart 6). Since early 1989, utilization has demay double U.S. zinc mining capacity by 1991. clined, and the prices of many basic commodities Gold production at new and expanded mines has have fallen—some, like aluminum ingot, rather soared as the mining technique of heap leaching sharply. reportedly has cut costs at some domestic sites to Data based on physical volumes for output less than $200 an ounce, far below the recent and capacity are available for many primarymarket price of gold. processing industries; and the quality of the data, the strategic importance of the industries, Manufacturing and the continuous operation (twenty-four hours a day, seven days a week) of several The manufacturing sector—85 percent of total industries give them analytical interest greater industrial production—covers a wide range of than their weight in total production. In the industries that have significantly different pat- revision, a particular effort was made to incorterns of utilization and capacity growth. For porate these data explicitly in the manufacanalytical purposes, the Federal Reserve has turing estimates. The review of industry that divided manufacturing into two broad groups: follows discusses these data. primary-processing industries, which produce In 1988 and early 1989, after a wrenching mostly materials and supplies, and advanced- restructuring during the 1980s, the smaller, processing industries, which produce mostly fin- more efficient primary metals industry operated ished consumer or capital goods. near 90 percent of its capacity and prospered more than it had for a decade (chart 5). Several Primary-processing industries. These indus- factors had caused the restructuring: Besides tries include textile mill products; paper and the severe recessions and the overvalued dol- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 419 5. Utilization of capacity in primary-processing industries Ratio scale, 1987 output = 100 1970 1975 1980 1985 1990 1970 1975 1980 1985 1990 lar, which had affected so many domestic indus- however, had slashed their capability to protries earlier in the decade, the substitution of duce raw steel 28 percent, from 155 million tons plastics, energy conservation with its emphasis to 112 million tons, between 1979 and 1987. on lighter vehicles, a lower investment in heavy Since then, the reopening of one "permanently industry, the development of lighter, stronger closed" mill and numerous small improvements steels, and so on, reduced the need for tonnages have added back 4 million tons of capacity. of metal. Cutbacks and modernization elimi- By the first quarter of 1990, declining iron and nated a substantial amount of outmoded capac- steel production had pushed the operating rate ity and cut costs. By 1989, output had risen down to 8IV2 percent, about 8 percentage points strongly from low levels; however, it was still from its recent peak. Little change is expected nearly 20 percent below its level a decade in raw steel capacity; nevertheless, ongoing earlier, and employment remained down nearly investment in continuous casters and other new 40 percent. Utilization in the steel industry, which had languished below 70 percent of capacity for 5XA 6. Price changes and capacity utilization in consecutive years, soared in 1987 and held near primary-processing industries 90 percent during 1988 and early 1989. Some analysts said that this rate was close to effective capacity. Purchasing managers reported that steel was short in supply and higher in price; by the summer of 1988, the producer price index for iron and steel had risen 13 percent from a year earlier. Although increases in production were a major factor behind the rise in utilization, the level of production remained far below the highs of a J—I—1—1—1—I—1—1 1 I 1 1 1 I i__i decade earlier. In 1989, for example, raw steel 1986 1987 1988 1989 1990 production of 91 Vi million tons was nearly 30 1. BLS Producer Price Index for intermediate materials less food percent below its level in 1979. Steelmakers, and energy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 Federal Reserve Bulletin • June 1990 technology will gradually increase the yield of The soaring price of crude oil, which tripled steel mill products.6 to $35 a barrel over the three years ending in Among producers of nonferrous metals, pri- 1981, forced a sharp reduction in the use of marily those of aluminum and copper, rising gasoline and other petroleum products. Producproduction and lower capacity similarly led to tion plunged. Even though oil prices receded sharp increases in utilization and to rising over the next few years, they remained high prices in 1987 and 1988. The producer price through 1985, and demand recovered only a index for primary nonferrous metals in the first little. As a result, in 1985 production of petrohalf of 1988 was up about 37 percent from a year leum products remained 15 percent below its earlier. Over the twelve months ending in Feb- level in 1978, and gross inputs to domestic ruary 1990, however, as production and utiliza- refiners' distillation units were down nearly 20 tion eased, the same price index declined more percent. By early 1986, more than 100 refineries than 20 percent. were closed permanently, and the distillation The primary aluminum industry was able to capacity of operable refineries was slashed by operate at or above rated capacity of 4 million 17 percent to 151/2 million barrels per day. metric tons for much of 1988 and 1989 because Since then, distillation capacity has not inthe maintenance of potlines was delayed. But creased much, and little change is expected in just as it had in steel, a significant restructuring 1990. Supplies of high-octane, lead-free gasohad occurred earlier in the 1980s, and output in line and of heating oil have occasionally been 1988-89 remained well below earlier peaks. tight. As a result, investment in refining has Low aluminum prices and the higher cost of been directed toward downstream processing electricity, which accounts for as much as 35 units that upgrade the mix of products to fit percent of the product cost, aggravated the demand, rather than toward an increase in the problems of low sales volume, excess inven- total volume of crude input that can be protory, and overcapacity. As a result, the industry cessed. renegotiated labor contracts and permanently Like many of the materials-producing indusclosed eleven of thirty-two primary aluminum tries, industrial and synthetic chemicals manuplants to cut costs. Producers cut capacity to facturing maintained high utilization rates in produce aluminum ingot from 5 million tons in 1988 and peaked in late 1988-early 1989. During 1983 to 4 million tons in 1986, a year when this period, purchasing managers reported that annual production dropped to only 3 million ethylene and its derivatives, plastics resins and tons, a third below the 1979-81 level. Capacity products, synthetic fibers and rubber, benzene, has changed little since 1986, and no new smelt- and caustic soda and soda ash were in short ers are planned. supply. Prices and profit margins for many In late 1989, utilization in petroleum refining chemicals rose rapidly, and numerous reports recovered to nearly 90 percent of capacity, a rate appeared about plant reopenings and capacity that before the energy crisis had been typical of expansions based on "debottlenecking," techthis industry but that had not been seen for many nological improvements, new equipment, and years. increased investment in new plants, especially in the petrochemical industry around Houston, Texas. Projects extending to 1993 have been an- 6. The rise of minimills, which use electric furnaces to nounced for plastics and their basic organic make steel from scrap, and heavy investment in computer controls and continuous casters, which save energy and chemical feedstocks, ethylene and propylene. By increase the yield of steel mill products from raw steel, mid-1989, fifteen ethylene producers had ancontributed to increases in productivity. A ton of raw steel nounced planned capacity increases totaling algoes further than it once did. The finished steel yield is now about 85 percent of raw steel tonnage, compared with 71 most 14 billion pounds; these projects, if fully percent in 1977. Thus, 84 million tons of steel mill products implemented, will raise ethylene capacity more were shipped in 1989, down 16 percent since 1979, compared than a third by 1993 and may lead to excess with production of 97 V2 million tons for raw steel in 1989, down 30 percent over the same period. capacity. Similarly, capacity to produce plastics Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 421 resins expanded 5!/2 percent in 1987 and almost 7. Utilization of capacity in advanced-processing 10 percent in 1988, after relatively slow growth in industries 1982-86. Numerous projects in various stages of completion indicate that the expansion of plastics resins capacity has continued. The capacity to produce other synthetic chemicals has grown less rapidly. Fiber Organon, in its November 1989 survey of capacity, reported that operable capacity of facilities producing manufactured fiber (cellulosic and synthetic), which declined nearly a billion pounds (9 percent) from 1979 to 1986, is expected to increase 5Vi percent in 1990 to 11 billion pounds, about the same level that it was in 1979. The basic pulp, paper, and paperboard industry operated essentially at 100 percent of capacity in late 1987 and early 1988 after two years of substantial growth in output. The producer price index for paper rose at an 11 percent annual rate I 1970 1975 1980 1985 1990 from mid-1987 to the end of 1988. Since then, output has flattened while capacity has grown at ufactures, and government-owned, governmentabout a 3 percent rate, and utilization and price operated ordnance facilities. have declined although the industry continues to Among these industries are most of the fast operate at a relatively high rate. growers: computers, communications equip- This industry, which had increased capacity at ment, semiconductors, instruments, and printing a 2 percent annual rate from 1982 to 1987, and publishing. Consequently, even though the stepped up its rate of expansion and now plans to utilization rate has not reached an exceptionally increase paper and paperboard capacity 8 million high level in recent years, output and capacity tons to more than 90 million tons during 1989-91. growth in advanced processing have exceeded These figures translate into a 3.2 percent annual output and capacity growth in primary prorate of growth, which is about VI percentage cessing (chart 7). point above the production trend. The industry From 1977 to 1987, annual capacity growth in rapidly increased its capital expenditures in re- advanced-processing industries averaged 4!/2 cent years, almost entirely for new equipment percent, but since then it has decelerated to that increases capacity and enables the industry about VA percent. The slowing is evident particto adjust to changing demands for different types ularly in high-technology machinery and in transof paper, to meet environmental requirements, to portation equipment. For instruments, furniture, conserve energy, and to cut costs. printing, miscellaneous manufacturing, and drugs and other chemical products, the growth of Advanced-processing industries. The advanced- capacity has accelerated. processing sector—about two-thirds of manufac- Utilization in advanced processing reached a turing—comprises most manufacturers of fin- peak in early 1989. However, its peak was only ished consumer goods and equipment. It includes 83.4 percent, about 3 percentage points below food and kindred products, tobacco products, the cyclical highs of the 1970s because the rates apparel products, printing and publishing, chem- for machinery, instruments, and motor vehicles ical products, such as drugs and toiletries, remained well below their earlier highs. Since leather and products, furniture and fixtures, elec- then, utilization in advanced processing has trical and nonelectrical machinery, transporta- fallen and, at the start of 1990, was not far from tion equipment, instruments, miscellaneous man- its 1967-89 average. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 Federal Reserve Bulletin • June 1990 8. Physical counts and Federal Reserve measures for output, capacity, and utilization for autos and light trucks F.R. utilization [ • 1 11 Within advanced processing, only the motor Nummi Motors (the General Motors-Toyota vehicles industry provides detailed physical joint venture). During this period, General Modata pertaining to capacity.7 This industry has tors also built new automobile plants to replace not been a fast grower. Indeed, closings of older facilities. automobile and truck assembly plants have Since 1987, a second wave of closings has been widely reported for a decade, and some occurred. Chrysler has shut the large plant in localities have been hard hit. However, the Kenosha, Wisconsin (formerly owned by Ameropening of new assembly plants, often by for- ican Motors), and General Motors has permaeign companies or joint ventures, has largely nently closed capacity to produce 900,000 vehioffset the effect of the closings on national cles and indefinitely idled plants that can produce production capacity. Demand continues to be another 700,000 units. insufficient to utilize fully the capacity to as- On balance since 1979, domestic assembly semble cars and trucks. capacity, including the expanding transplants, The first wave of plant closings occurred in the has dropped only about half a million units (l!/4 early 1980s, when sales plunged in the wake of million if the indefinitely idled General Motors soaring gasoline prices and the recessions of 1980 plants are included) to approximately 14 million and 1982. Consequently, between 1979 and 1982, units. Moreover, the big three automakers and the industry slashed domestic capacity to assem- the Japanese transplants have expanded capacble autos and light trucks from 141/2 million to ity in Canada and Mexico enough so that over- 123/4 million units, with especially sharp percent- all North American capacity to produce motor age cuts at Ford and Chrysler (chart 8, left vehicles for the U.S. market has increased. In panel). From 1982 to 1987, however, assembly 1989, however, U.S. output was only 10.6 milcapacity rebounded to 143/4 million units, with a lion units, well below earlier highs; as a result, strong gain in General Motors's light truck ca- utilization of domestic capacity was about 75 pacity and the buildup of capacity by the first percent, with a lower rate for automobiles than Japanese transplants: Honda, Nissan, and that for light trucks (including vans), which have grown in popularity. With sales sluggish and transplants scheduled to increase North 7. In this revision, the capacity index for motor vehicles American capacity significantly over the next and parts has been built from separate estimates for assem- few years, excess capacity threatens a further blies of automobiles, light trucks, medium and heavy trucks, shakeout of automobile plants in the United and parts. Previously, the estimate for motor vehicles was based on utilization rates from the McGraw-Hill/DRI survey States. supplemented by those from the Census survey of utilization. The production of medium and heavy trucks A separate series on automobile assemblies based on physical counts was shown as an addendum item. declined even more severely in the early 1980s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 423 Federal Reserve calculations for motor vehicles and parts In this revision, the capacity index for motor vehicles and utilization rate of 76 percent, with a higher rate for light parts has been built from separate estimates for assemblies trucks than for automobiles. These figures provide the basis of automobiles, light trucks, and medium and heavy trucks for the Federal Reserve index of capacity, which is used and for parts. Motor vehicle manufacturers make available with the Federal Reserve production index for vehicles detailed data on hourly line speeds at individual plants that (chart 8). assemble automobiles and light trucks in the United States. The Federal Reserve production index for autos or light An annual capacity count can be estimated by multiplying trucks (middle panel) grows about 3 percent a year more line speeds by the number of hours that can be worked in rapidly than the unit count (left panel) because the index the year (under union contracts); this estimate can be is adjusted for quality improvements (more efficient engines, checked against annual plant production peaks. Company more standard options, catalytic converters, and so on). analysts estimate that a plant can work between sixteen and When the Federal Reserve capacity index is calculated by twenty hours a day for between 230 and 244 days per year. the steps listed in the appendix, it, too, is implicitly adjusted A plant that produces 60 vehicles an hour, then, can pro- for quality change and grows about 3 percent a year more duce about 250,000 vehicles a year-a range of between rapidly than the physical capacity estimate. This difference 220,800 and 292,800 on the above assumptions. is by design and results in Federal Reserve utilization esti- Based on such calculations, U.S. automakers-the big mates that are essentially the same as those derived from three plus the Japanese transplants-can assemble about 9l/z the unit counts (right panel). million cars and 4lA million light trucks; included in this The method for calculating heavy truck capacity is the total are four plants with a capacity of about 700,000 units same as that for calculating auto and light truck capacity, that are indefinitely idled and may never reopen. Dividing except that the independent producers have not supplied line actual production of 6.8 million automobiles and 3.8 mil- speeds. Consequently, historical peaks in annual produclion light trucks in 1989 by capacity output yields a combined tion at individual plants are used in estimating capacity. than did the output of lighter vehicles. Produc- percent per year; from 1976 to 1978, capacity ers cut capacity one-fourth by 1984 and have growth slowed to a 4!/2 percent rate, and since not added to capacity since then. Even so, then, it has averaged about 2 percent a year. utilization of heavy truck capacity remains rel- Utilization has risen since its low in 1980 but atively low because production has remained a remains well below the rates that prevailed third or more below its 1979 peak. In 1989, before 1973.8 According to the North American production eased to 250,000 units, 40 percent Electric Reliability Council, the nation's utilibelow its peak a decade before. ties intend to increase capacity at an annual rate of 1.2 percent between 1989 and 1998 Utilities compared with a projected annual growth in summer peak demand of 2 percent. The more Consumers' reactions to soaring energy prices in rapid rise in demand is expected to reduce the the 1970s and early 1980s caused the slower margin of excess capacity about 5 percentage growth and the low operating rate (compared points. with its own past peak) that characterized the utilities for more than a decade. Capacity growth averaged only 1.4 percent per year from 1977 to 8. Utilities build sufficient generating facilities to safely 1989. Demand perked up only after 1986, when surpass peak demands such as those that occur on a hot August afternoon. Most of the time there is a lot of spare crude oil prices fell back. In late 1989, utilization capacity. The estimates of utilization that the Federal Rejumped to 87!/2 percent, its highest level in more serve has constructed reflect the excess of generating capacthan a decade. ity over the desired level of capacity, that is, a capacity level high enough to safely surpass expected noncoincident peaks The operating rate of electric utilities has in generation. The industry publishes much lower utilization been relatively low, and the growth of electric rates based on the much larger excess of generating capacity generating capacity has been slowing since late over annual generation. The Federal Reserve chose an economic definition of capacity—called annual capability—be- 1973, when fuel prices soared and users began cause a utility must invest in more capacity when summer to conserve energy (chart 9). From 1967 to brownouts threaten even though the annual generation load 1974, generating capacity increased about 8 may be only half of annual generating potential. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 Federal Reserve Bulletin • June 1990 9. Utilization of capacity in electric utilities the growth of investment has slowed, its level should be high enough to expand capacity. Ratio scale, 1987 output = 100 200 Capacity APPENDIX 150 Capability This appendix discusses (1) the evolution of the 100 Federal Reserve Board's capacity and utilization estimates, (2) the six basic steps in the derivation of the estimates, (3) the new structure as shown in table A.l, (4) the effect of changing weights and linking indexes on utilization, and (5) con- Percent of capacity cepts and levels of capacity. At the end of the appendix are historical data, 1967-89, for total industry (table A.2) and formulas for aggregating capacity and calculating utilization. Background From its earliest days, the Federal Reserve has Although growth in demand for electricity has been interested in timely measures of economic slowed, the level of generation was 50 percent activity. In 1919, it began to publish monthly higher in 1989 than it was in 1973. In contrast, gas indexes of the "physical volume" of domestic utilities had to cut production significantly until a trade, which in the 1920s evolved into the low was reached in 1986. Despite increases since monthly index of industrial production. Later, it then, capacity utilization probably remains low. began to study data on capacity and capacity Data on underground storage of natural gas, a utilization in conjunction with production to anfactor in deliverability at times of peak demand, alyze inflationary pressures and the demand for and on withdrawals and reserves of natural gas capital goods. indicate little change in capacity in recent years. In the booming 1960s, interest in capacity Explicit capacity data for the gas utilities are not contraints was great, and the Federal Reserve available. maintained estimates of output, capacity, and utilization for selected industrial materials and for manufacturing. For the most part, these CONCLUSION estimates were used internally until 1966, when the U.S. Council of Economic Advisers pub- Economic expansion combined with a restruc- lished the manufacturing estimates in its Annual turing of some basic industries during the 1980s Report. Later in the year, Frank de Leeuw led to higher utilization rates and a marked rise described them in the Federal Reserve Bulletin, in commodity prices in 1988 and early 1989. In and then the Federal Reserve began to publish the slowdown that has occurred since then, three quarterly series—total manufacturing, utilization in some basic industries has de- primary-processing industries, and advancedclined, and commodity prices have eased. Nev- processing industries.9 ertheless, as projects undertaken in the past year or two develop, the rate of growth of industrial capacity should be maintained in the 9. Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman, "A Revised Index of Manufacturing Capacity," near future in the same 2 to 3 percent range that Federal Reserve Bulletin, vol. 52 (November 1966), pp. has characterized the past two years. Although 1605-15. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 425 Pressures on capacity again became a con- Capacity and capacity utilization figures may cern in 1973 and 1974, when many metals and be used for very different purposes; thus, difother industrial materials were reported in short ferent definitions and assumptions may be used. supply and prices were soaring. At this time, One set of assumptions may be appropriate to the Federal Reserve began to publish capacity answer questions about capacity available for utilization rates for major materials (based on mobilization for war, another for questions about physical volume data), first in the Federal Re- inflationary pressures. Moreover, capacity is a serve Bulletin and then in the monthly statistical measure of maximum output and typically is not release, "Industrial Production." achieved; consequently, it is difficult to measure In 1976, capacity measures for all ninety-six precisely. materials series in the index of industrial pro- Even for a single plant, a range of capacity duction were estimated, and the manufacturing concepts applies. At the high end of the range series were reestimated in more detail (fifteen would be an engineering maximum based on the components instead of two) and substantially rated speed of the machinery in place and revised back to 1948. The new monthly Federal operated with minimum downtime. At the low Reserve statistical release, "Capacity Utiliza- end, economic concepts relate a firm's capacity tion," included monthly utilization rates, as to a quantity of output that minimizes its unit well as quarterly data for output, capacity, and costs or beyond which its costs rise unacceptutilization, for manufacturing and industrial ably. The surveys incorporate responses bematerials (and their major component series). tween these extremes. In 1983, estimates of capacity for mining and Often, respondents use the concept of pracutilities and total industry were added for the tical capacity that the Census survey defines as period back to 1967; and in 1985, the manufac- "the maximum level of production that this turing components were increased to twenty- establishment could reasonably expect to obfour. tain using a realistic employee work schedule The aim of the 1990 revision was to create an with the machinery and equipment in place" integrated, more detailed system of measures and assuming a normal product mix and downfor total industry. The materials system has time for maintenance, repair, and cleanup. been discontinued as a separate entity, and Based on this definition, two physically identithose components of the materials system that cal factories with identical equipment, but with are based on physical unit counts have been different work rules and schedules, different incorporated into the expanded system of ca- qualities of labor and management, and difpacity measures for manufacturing, mining, and ferent mixes of products, could have quite utilities. These series are now published different capacities. Asking what the practical monthly in the redesigned Federal Reserve sta- capacity of a plant is may be like asking how tistical release, "Industrial Production and Ca- much water a bathtub can hold without overpacity Utilization." The new capacity measures flowing: It depends on who is in the tub at the cover the period since 1967. The fifty-four indi- time and what he or she is doing. vidual series in manufacturing have been de- Besides the conceptual difficulties of measursigned to produce subtotals, primarily at the ing capacity at the plant level, an aggregation two-digit SIC level, that are consistent with problem exists. Looking at the capacity of mathe old manufacturing measures for 1948-66. chinery, tools, furniture, and other equipment or structures in great detail, one always sees more capacity than can be used when account is taken Concepts and Levels of Capacity of bottlenecks, seasonal shifts in product mix, and so on. The president of an automobile com- Capacity is an ambiguous concept, and capacity pany may see the capacity of the company as less and utilization estimates are often rough approx- than the sum of the capacities of all the estabimations. No census of plant capacity exists. lishments within the company because shortages Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 Federal Reserve Bulletin • June 1990 of key components, such as engines or automatic Output, Capacity, and Utilization transmissions, may limit total production. This discrepancy may explain, in part, why the utili- In the absence of monthly surveys of industrial zation rates reported in the surveys of companies capacity or capacity utilization, the Federal are higher than those reported in the Census Reserve Board estimates monthly utilization by survey of plants.10 dividing a monthly industrial production index Interindustry bottlenecks may further limit ag- by a related capacity index. This approach of gregate capacity. In major cyclical peaks, for providing an integrated system of output, caexample, shortages of metals or other industrial pacity, and utilization measures has three admaterials may limit production of consumer dura- vantages over the recently available surveys of bles and business equipment and keep down ap- utilization alone. (1) It provides a more comparent utilization of capacity in those industries. plete picture of industrial developments and Because the levels of the Federal Reserve allows the user to see which industries are measures of utilization are determined by the growing rapidly and which are declining. (2) It surveys, in particular the McGraw-Hill survey, provides more current estimates of utilization which was the first broad survey available, rates because the production indexes for a theoretical considerations have not played a given month are available about fifteen days major part in determining the level of the rates. after the end of the month. (3) It provides In fact, normative considerations have been estimates of utilization that appear to reflect the avoided in determining the overall levels. Thus, cyclical movements in production more accuno attempt is made to select a figure, such as rately than the rates based solely on the judg- 100 percent, that signals accelerating inflation ments of respondents to surveys. or to correct for the effect of interindustry Although the Federal Reserve conducts no bottlenecks on the broad totals. surveys of capacity or utilization, it uses data A major task for the Federal Reserve in devel- on utilization rates from various surveys in oping reasonable estimates of capacity and utili- estimating its capacity indexes. The Bureau of zation is dealing with differences among the the Census and McGraw-Hill/DRI have convarious surveys of utilization and with inconsis- ducted broad surveys of utilization rates, essentencies between the movements of the industrial tially for manufacturing, while various trade production index and the utilization rates re- associations and other sources have surveyed ported in those surveys. A major aim is that the specific industries. As of this writing, McGraw- Federal Reserve rates be consistent over time so Hill/DRI has discontinued its survey (the last that, for example, a rate of 85 percent means data are for the end of 1988) because of a about the same degree of tightness that it meant declining response rate and a lack of profitin the past. ability, and the Bureau of the Census has inad- In its statistical release, the Federal Reserve equate funding for its survey of manufacturing provides cyclical highs and lows and averages utilization rates for late 1989. with the monthly utilization rates to give users some historical perspective. For total industry a rate of 88 percent would be very high and would The Federal Reserve Method indicate the probability of severe strains in some sectors. For some individual industries, Six basic steps are involved in calculating the such as paper and pulp, however, 88 percent is utilization rates published by the Federal moderate. Reserve:11 10. Another reason is that the company surveys, especially 11. This section is an abridgement of the methodological the McGraw-Hill survey, are relatively small samples of large appendix found in Richard D. Raddock, "Revised Federal companies that respond voluntarily. These firms may have Reserve Rates of Capacity Utilization," Federal Reserve above-average utilization rates. Bulletin, vol. 71 (October 1985), pp. 760-66. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 427 Step 1. Preliminary implied end-of-year indexes indexes are generally procyclical—that is, they of industrial capacity (IC) are calculated by divid- tend to rise faster in good times than in bad, ing a production index (IP) by a utilization rate following investment cycles—but they typically obtained from a survey (U) for that end-of-year do not fluctuate as much as the preliminary ims period. Thus IC = IPJU. These ratios are ex- plied capacity series. They will, of course, t pressed, like the indexes of industrial production, broadly follow the levels and trends of the prelimas percentages of production in a base year, inary implied capacity indexes. currently 1987, and they give the general level and Step 3. A continuous monthly time series is trend of the capacity estimates. Each implied formed by interpolating between the final endcapacity index number is an estimate of maximum of-year capacity indexes. sustainable output expressed as a percent of out- Step 4. An "annual capability adjustment" is put in 1987. Thus, if in December 1987 the pro- applied to estimates of capacity that appear to duction index is 100 and a related utilization rate reflect short-term peak capacity rather than a from a survey is 80 percent, then the implied sustainable level of maximum output. When data capacity index is 100/0.8 = 125. In the absence of sources are changed, a level adjustment may also information on utilization rates for an industry, be required to maintain continuity and consistrends through peaks in production may be used tency with the historical levels based on the to estimate capacity output for that industry. McGraw-Hill/DRI survey, which has been the Typically, after a revision of the industrial pro- primary determinant of the level of utilization in duction index, the capacity indexes must also be manufacturing. In this revision, new sources for revised. For example, in the latest revision, the component series with appropriate level adjustproduction index for nonelectric machinery ments have been introduced. shows much faster growth because of a change in Step 5. Value-added weights are applied to the the methodology of measuring computer output.12 monthly capacity indexes, and the weighted in- Consequently, the related capacity index (maxi- dexes are summed to appropriate groups. mum output) had to be similarly revised. The Step 6. Utilization rates for the individual series implied capacity ratios (IP/U ) automatically in- and groups are calculated by dividing the perti- S corporate the production revisions in the estima- nent production index by the related capacity tion of capacity. index. Thus, utilization rates for published groups Step 2. The annual movements of the prelimi- are not aggregated directly from the utilization nary capacity indexes are refined to give consid- rates for components but are derived from aggreeration to alternative indicators of annual capacity gate production and capacity indexes for those change; these alternatives include capacity data in groups. physical units and estimates of capital stock. In general, the refined estimates of capacity are the The New Structure fitted values from regressions that retrend the physical capacity or capital stock estimates to the The new structure of the Federal Reserve's meatrend growth path of the preliminary implied ca- sures of capacity in manufacturing, mining, and pacities (IC = IPJU ).n The resulting capacity electric and gas utilities is shown in table A.l. t s<t Manufacturing and its twenty major (two-digit SIC) industry groups are now summed from more 12. The methodology for estimating the new computer series, the annual levels of which are derived by dividing where current dollar figures by the BEA price index for computers, is described in Armitage and Tranum, "Industrial IC, = implied capacity index in period t Production." K, = annual capacity indicator 13. The fitted values from a regression of the equation fi (t) = specified functions of time below give an estimate of the difference in the trends of the a, b t = parameters to be estimated implied capacity and the annual capacity indicator: e, = error term. The refined capacity estimates are taken to be the annual log(IClk) = a + ^Zbfi(t) + e„ capacity indicators multiplied by the antilogarithms of the t t fitted values from the equation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 Federal Reserve Bulletin • June 1990 than fifty components for the period since the end chemicals and products, major industry group of 1966. The eighteen mining components and the 28; the Census also provided estimates for comseparate series for electric and gas utilities are the ponents within the major group; and trade assosame as in the previous structure. ciations provided physical capacity and output The manufacturing series now explicitly incor- data for plastics resins and other selected comporate more physical-unit data on output and ponents. capacity. Nearly all of these data had been in- Given disparate data and the need to create cluded in the old materials measures, but data for consistent time series, the Federal Reserve truck assembly plants were newly compiled for Board staff adopted three operating guidelines in this revision. this revision. First, we gave primacy to physical The greater number of manufacturing series output and capacity data in estimating indexes of also promotes better estimation or extrapolation sustainable annual capacity. Second, we retained of capacity. The industry subgroups within a (aside from rebasing) pre-1967 levels of the twomajor group often show different trends or cycli- digit groups in manufacturing, which have been cal movements in production, which may be use- based largely on the McGraw-Hill/DRI survey. ful in identifying disparate capacity trends. For Third, we adjusted the estimates of manufacexample, within nonelectrical machinery (SIC turing capacity based on the Census survey 35), the output of engine, farm, construction, and (available from 1974 to 1988) and capital stock to allied equipment declined from 1982 to 1987 levels that maintain consistency over time with whereas the output of office, computer, and ac- the McGraw-Hill/DRI survey (available 1955 to counting machines soared (chart A.l). 1988). In general, a simple level adjustment Table A.l also contains information on the achieved this broad consistency. In some cases, sources of capacity and output or utilization both level and trend adjustments were required rates. Some major groups have multiple, and because the utilization rates based on the Census often disparate, sources. For instance, both the survey trend lower over time than those based on McGraw-Hill/DRI survey and the Census Survey the McGraw-Hill/DRI survey. of Plant Capacity provided utilization rates for Often the Census utilization rates and capital stock estimates were used to estimate a single capacity index for a combination of three-digit A.l. Output and capacity for two components of SIC categories within a two-digit group. In such nonelectrical machinery (SIC 35) cases, we weighted Census utilization rates at Ratio scale, 1987 output = 100 the four-digit SIC level with value-added figures Engine, farm, and construction equipment from the Census of Manufactures to create a 250 survey-based utilization rate for the new Capacity combination.14 Then we followed the steps described earlier to estimate capacity indexes. Capital stock estimates were used to refine the annual movements of capacity for these combinations (step 2 above). The capital stock estimates were derived by the perpetual inventory method from investment data found in the Annual Survey of Manufactures and adjusted at the two-digit level to BEA capital stock figures. 14. The formula is U = IVajZ^, ' U, where U is a utilization rate, Va is value added, and / is the 1980 1985 1990 individual four-digit industry in the group. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A. 1. Industry structure and series composition of industrial capacity indexes and utilization rates: classification, value-added proportions, and description of series SSIICC ccooddee Value-added proportions GGrroouupp aanndd sseerriieess ((11997777 SSeerriieess ssoouurrcceess aanndd uunniittss eeddiittiioonn)) 1977 1982 1987 Total industry 100.00 100.00 100.00 Mining 9.83 16.92 7.93 Metal mining 10 .50 .29 .32 Iron ores1 101 .15 .07 .05 Capacity estimates and production, tons, Bureau of Mines. Copper ores' 102 .15 .06 .09 Capacity estimates and production, tons, Bureau of Mines. Lead and zinc ores' 103 .05 .02 .01 Capacity estimates and production, tons, Bureau of Mines. Gold and silver ores' 104 .02 .06 .12 FR estimate based on peaks in tonnage production. Ferroalloy ores' 106 .04 .01 .01 Capacity estimates and production of molybdenum ores, tons, Bureau of Mines. Miscellaneous metal ores' 105, 8, 9 .09 .07 .03 FR estimate based on trends through peaks in production index. Coal 11, 12 1.60 1.68 1.22 Anthracite' 11 .02 .02 .01 FR estimate based on trends through peaks in production index. >3 Bituminous coal' 12 1.58 1.66 1.21 FR estimate based on trends through peaks in production index. ro Oil and gas extraction 13 7.07 14.39 5.73 Texas crude oil' 131 part 1.34 2.36 .76 FR estimates of crude oil and natural gas capacity based on trends in regional Alaska and California crude oil' 131 part .57 2.12 1.13 production and estimates of proven reserves, and on analyses by the Louisiana and other crude oil' 131 part 1.54 2.99 1.19 Department of Energy, the American Petroleum Institute, the American Gas Natural gas' 131 part 2.16 3.87 1.77 Association, and others. b Propane' 132 part .05 .06 .02 FR estimate based on trends through peaks in production index. Liquefied petroleum materials' 132 part .42 .74 .27 FR estimate based on trends through peaks in production index. OOiill aanndd ggaass wweellll ddrriilllliinngg 138 .99 2.25 .58 Capacity based on available rigs; physical utilization is ratio of active to available rigs from the Reed Tool Company, Annual Rig Census. Stone and earth minerals 14 .66 .56 .67 s Stone, sand, and gravel1 141, 2, 4 .36 .29 .43 FR estimate based on trends through peaks in production index. I Chemical and fertilizer materials' 147 .20 .20 .14 Capacity estimates and output, tons of soda, ash, phosphate rock, salt, barite, s and frasch sulfur, Bureau of Mines. Miscellaneous stone and earth materials' 145, 8, 9 .09 .08 .10 FR estimate based on trends through peaks in production index. Manufacturing 84.21 74.71 84.44 Primary processing2 31.66 23.61 26.71 Advanced processing5 52.56 51.11 57.73 a Durable manufacturing 49.10 42.36 47.27 r> Lumber and products 24 2.30 1.41 2.00 Logging and lumber1 241, 2 1.05 .56 .84 Census survey; capital stock. o Lumber products' 243-5, 9 1.25 .84 1.16 Census survey; capital stock. ft. Furniture and fixtures 25 1.27 1.15 1.45 Census survey; capital stock. Stone, clay, and glass products 32 2.72 2.12 2.46 McGraw-Hill/DRI survey. Glass' 321, 2, 3 .78 .63 .67 Census survey; capital stock. Cement' 324 .24 .16 .16 Kiln capacity and production of cement clinker, tons, Bureau of Mines. Stone and clay products' 325-9 1.70 1.32 1.63 Census survey; capital stock. Primary metals 33 5.33 2.73 3.32 Iron and steel 331, 2 3.49 1.54 1.95 Capacity and output of raw steel, tons, American Iron and Steel Institute. Raw steel 331 part .51 .12 .11 Capacity and output of raw steel, tons, American Iron and Steel Institute. N) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A.l. Industry structure and series composition of industrial capacity indexes and utilization rates-Continued SIC code Value-added proportions Group and series (1977 Series sources and units edition) 1977 1982 1987 Nonferrous metals 333-6, 9 1.85 1.19 1.38 McGraw-Hill/DRI survey. Primary copper 3331 .13 .04 .03 Copper smelting1 3331 part .05 .02 .01 Capacity and output, tons, contained copper, Bureau of Mines. Copper refining' 3331 part .08 .02 .02 Capacity and output, tons, contained copper, Bureau of Mines. Primary aluminum ingot 3334 .28 .10 .14 Capacity and output, metric tons of ingot, Aluminum Association, Bureau of Mines. Other nonferrous metals and products' 333 part, 334-9 1.44 1.05 1.21 Census survey; capital stock. Fabricated metal products 34 6.46 5.30 5.38 Census and McGraw-Hill surveys; capital stock. Nonelectrical machinery 35 9.54 9.20 8.55 McGraw-Hill/DRI survey. Engine, farm, construction, and allied equipment' 351-3 3.16 2.58 2.01 Census survey; capital stock. Office, computing, and accounting machines' 357 1.41 2.10 2.46 Census survey; capital stock. Other nonelectrical machinery' 354-6, 8, 9 4.97 4.52 4.08 Census survey; capital stock. Electrical machinery 36 7.15 7.61 8.62 McGraw-Hill/DRI survey. Appliances and television sets' 363, 5 1.19 .81 .75 Census survey; capital stock. Communications equipment1 366 2.01 2.55 3.01 Census survey; capital stock. Semiconductors' 3674-9 1.19 1.79 2.17 Census survey; capital stock. Other electrical equipment and parts' 361, 2, 4, 6, 9 2.77 2.47 2.69 Census survey; capital stock. Transportation equipment 37 9.13 7.57 9.80 Motor vehicles and parts 371 5.25 3.09 4.65 McGraw-Hill/DRI survey prior to 1977. Auto and light truck assemblies 2.67 1.39 2.35 Auto assemblies' 1.82 1.02 1.60 Physical output and capacity based on line speeds and peaks in physical output Light trucks' .85 .37 .75 for individual plants as reported in Ward's Automotive Reports since 1977. Medium and heavy trucks, trailers, etc.1 .28 .19 .46 Same as above (data only for medium and heavy trucks). Motor vehicle parts' 3714 2.31 1.51 1.85 Census survey; capital stock. Aerospace and miscellaneous transportation equipment. 372-9 3.87 4.49 5.15 McGraw-Hill/DRI survey. Aircraft and parts' 372 2.09 2.65 3.01 Census survey; capital stock. Ships and boats' 373 .66 .70 .55 Census survey; capital stock. Railroad and miscellaneous transportation equipment 374-6, 9 1.11 1.14 1.59 Census survey; capital stock. Instruments 38 2.66 3.03 3.26 Census and McGraw-Hill/DRI surveys; capital stock. Miscellaneous manufactures 39 1.46 1.27 1.24 Census survey; capital stock. Government-owned-and-operated ordnance' 1.09 .96 1.18 FR estimate based on trends through peaks in production index. Nondurable manufacturing 35.11 32.36 37.17 Food and kindred products 20 7.96 7.96 8.76 Census and McGraw-Hill/DRI surveys; capital stock. Tobacco products' 21 .62 .81 1.02 Census survey; capital stock. Textile mill products 22 2.29 1.67 1.84 American Textiles Manufacturers Institute and McGraw-Hill/DRI surveys. Fabrics' 221-4 .77 .53 .53 Census survey; capital stock. Yarn and thread1 228 .32 .21 .27 Census survey; capital stock. Other textiles' 229 1.20 .93 1.04 Census survey; capital stock. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Apparel products. 23 2.79 2.35 2.36 Census survey; capital stock. Paper and products. 26 3.15 3.00 3.58 McGraw-Hill/DRI survey. Pulp and paper . 261-3 1.33 1.24 1.64 Wood pulp' ... 261 .44 .10 .16 Capacity and output, tons, American Paper Institute. Paper1 262 .44 .81 .98 Capacity and output, tons, American Paper Institute. Paperboard1 ... 263 .44 .34 .50 Capacity and output, tons, American Paper Institute. Paper products1 . 264, 5, 6 1.81 1.76 1.94 Census survey; capital stock. Printing and publishing 27 4.54 4.90 6.37 Census survey; capital stock. Chemicals and products 28 8.05 6.81 8.60 McGraw-Hill/DRI survey. Basic chemicals1-2... 281 .92 .79 .79 Census survey; capital stock. Synthetic materials1'2 282 1.11 .85 1.28 Plastics materials .. 2821 .59 .43 .78 Capacity and output, pounds, major thermosetting and thermoplastic resins, Society of the Plastics Industry, Inc. Synthetic rubber1 2822 .08 .08 .09 Capacity, tons, International Institute of Synthetic Rubber Producers; production, tons, Rubber Manufacturers Association. Manmade fibers 2823, 4 .44 .34 .41 Capacity and production, pounds, Fiber Organon. Industrial organic chemicals1'2 286 1.83 1.11 1.54 Census survey; capital stock; trade reports on physical capacity. Chemical products1'3 283-5, 9 3.65 3.60 4.54 Census survey; capital stock. Agricultural chemicals1 287 .54 .46 .45 Fertilizer materials1'2 2873-5 .36 .19 .18 Census survey; capital stock. Agricultural chemicals n.e.C.1**4. 2879 .18 .27 .28 Census survey; capital stock. Petroleum products 29 2.40 1.99 1.32 Capacity of and gross input to crude distillation units at petroleum refineries, millions of barrels per calendar day, Department of Energy. Rubber and plastics products 30 2.80 2.45 3.02 McGraw-Hill/DRI survey. Tires1 301 .62 .42 .40 Census survey; capital stock. Rubber products excluding tires'. 302-4, 6 .51 .42 .44 Census survey; capital stock. Plastics products n.e.c.14 307 1.67 1.61 2.18 Census survey; capital stock. Leather and products 31 .53 .43 .30 Census survey; capital stock. Utilities .. 5.96 8.36 7.63 Electric 491, 493 part 4.17 6.26 6.01 Physical output and capability, megawatt hours, generating plants, North American Electric Reliability Council, Department of Energy, and Edison Electric Institute. Gas 492, 493 part 1.78 2.10 1.62 FR estimates based on Department of Energy, American Gas Association, and industry reports. 1. Data are included in published totals but are not shown separately in the monthly report. 3. Advanced-processing industries, which include foods, tobacco products, printing and publishing, 2. Primary-processing industries, which include textile mill products; lumber and products; paper chemical products such as drugs and toiletries, leather and products, furniture and fixtures, machinery, and products; industrial chemicals; petroleum products; rubber and plastics products; stone, clay, and transportation equipment, instruments, miscellaneous manufactures, and goverament-owned-andglass products; primary metals; and fabricated metal products. operated ordnance facilities. 4. Not elsewhere classified. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 Federal Reserve Bulletin • June 1990 A.2. Historical data for output, capacity, and capacity utilization for total industry, 1967-89' Quarter YYeeaarr JJaann.. FFeebb.. MMaarrcchh AApprriill MMaayy JJuunnee JJuullyy AAuugg.. SSeepptt.. OOcctt.. NNoovv.. DDeecc.. AAnnnnuuaall 1 2 3 4 AAvvgg.. Output (percent of 1987 output) 1967 57.6 57.0 56.6 57.2 56.7 56.7 56.5 57.6 57.5 58.0 58.8 59.5 57.1 56.8 57.2 58.8 57.5 1968 59.4 59.6 59.8 59.9 60.6 60.8 60.7 60.9 61.1 61.2 62.0 62.2 59.6 60.4 60.9 61.8 60.7 1969 62.6 63.0 63.5 63.2 63.0 63.6 63.9 64.1 64.1 64.1 63.5 63.3 63.0 63.3 64.0 63.6 63.5 1970 62.1 62.1 62.0 61.9 61.8 61.6 61.7 61.6 61.2 60.0 59.6 61.0 62.1 61.8 61.5 60.2 61.4 1971 61.5 61.3 61.3 61.6 61.9 62.2 62.0 61.7 62.7 63.1 63.4 64.1 61.4 61.9 62.1 63.5 62.2 1972 65.6 66.0 66.5 67.6 67.5 67.7 67.6 68.5 69.2 70.2 71.1 71.7 66.0 67.6 68.4 71.0 68.3 1973 71.8 72.8 72.8 73.0 73.4 73.9 74.4 74.3 74.9 75.2 75.2 74.0 72.5 73.4 74.5 74.8 73.8 1974 73.0 72.7 73.0 72.9 73.8 74.0 73.6 73.4 73.7 73.2 71.1 68.1 72.9 73.6 73.6 70.8 72.7 1975 66.3 65.3 64.1 64.7 64.5 65.3 65.7 66.9 67.6 67.9 68.6 69.1 65.2 64.9 66.7 68.5 66.3 1976 69.9 71.1 70.9 71.2 72.0 72.1 72.5 72.9 73.1 73.4 74.6 75.2 70.6 71.8 72.9 74.4 72.4 1977 75.5 75.9 76.6 77.7 78.3 78.9 78.9 79.0 79.4 79.4 79.5 79.1 76.0 78.3 79.1 79.4 78.2 1978 78.8 79.0 80.0 82.0 82.3 83.1 83.3 83.6 84.1 84.5 85.2 85.4 79.2 82.5 83.7 85.0 82.6 1979 85.1 85.8 86.1 85.2 86.2 86.1 85.6 85.3 85.5 86.0 85.7 85.6 85.7 85.8 85.5 85.8 85.7 1980 85.9 86.2 86.2 84.5 82.5 81.5 81.2 82.4 83.5 84.0 85.5 85.9 86.1 82.9 82.3 85.1 84.1 1981 85.2 85.4 85.7 85.0 85.6 86.1 87.1 86.9 86.5 85.8 84.8 84.1 85.5 85.5 86.8 84.9 85.7 1982 82.4 84.2 83.7 83.2 82.7 82.4 82.0 81.6 81.0 80.3 80.0 79.3 83.4 82.8 81.5 79.8 81.9 1983 80.8 80.7 81.3 82.3 83.2 83.7 85.3 86.5 87.9 88.6 88.8 89.2 80.9 83.1 86.6 88.9 84.9 1984 91.0 90.9 91.9 92.4 93.0 93.5 93.9 94.0 93.9 93.2 93.3 92.8 91.3 93.0 93.9 93.1 92.8 1985 93.1 93.8 94.1 94.5 94.7 94.4 94.1 94.5 95.0 94.2 94.6 95.6 93.6 94.5 94.6 94.8 94.4 1986 96.1 95.5 94.6 94.8 94.8 94.4 94.8 95.0 95.1 95.6 96.2 96.7 95.4 94.6 94.9 96.2 95.3 1987 96.5 97.6 98.2 98.3 99.2 100.1 100.8 101.0 100.9 102.3 102.2 102.6 97.4 99.2 100.9 102.4 100.0 1988 103.5 103.5 103.9 104.3 104.8 105.0 106.1 106.4 106.2 106.5 106.9 107.4 103.6 104.7 106.2 107.0 105.4 1989 107.7 107.6 107.7 108.6 108.3 108.4 107.8 108.2 108.2 107.7 108.1 108.6 107.7 108.4 108.1 108.1 108.1 Weights, Linking, and Utilization: Separate indexes are calculated for each six- A Technical Note year weight period; then these segments, each segment expressed as a percentage of its own base year, are linked to form a continuous time Table A.l includes the value-added proportions series expressed as a percentage of 1987 output. for 1977, 1982, and 1987 that are applied to the Linking involves finding a constant, called a individual capacity indexes when they are link factor, that shifts the level of the earliersummed into aggregate indexes for the period based index to the level of the later-based index since 1977. These are the same weights that are in the overlapping link period. used to combine series in the production index. Output and capacity indexes for each series As the formulas at the end of the appendix show, are independently linked, and the link factor for using such aggregates of output and capacity to each is independently calculated. In most cases, calculate utilization for broad groups is equiva- the link factors for output and capacity are nearly lent to summing individual utilization rates the same; however, in some cases the link factors weighted by capacity value added. Updating for output differ from those for capacity. Such weights allows for using reasonably current price differences affect the level of utilization. We relationships to determine the relative impor- found that linking tends to raise or lower aggretance of series in the index. gate utilization rates noticeably when two condi- The aggregate output and capacity indexes tions are present: (1) The relative weights (prices) of series, such as computers, gold ore, or are initially calculated in overlapping six-year crude oil, change significantly, and (2) the indisegments, each segment with its own set of vidual series has a utilization rate that differs weights. For the years 1967-72, 1967 weights from the average of the group. are used; for 1972-77, 1972 weights; for 1977- 82, 1977 weights; and so on. If past practice For example, dramatically higher fuel prices continues, the 1987 weights will serve until the incorporated in the 1982 weights increases the introduction of 1992 weights. relative importance of oil and gas extraction, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 433 A.2. Historical data for output, capacity, and capacity utilization for total industry, 1967-89'—Continued Quarter Annual YYeeaarr JJaann.. FFeebb.. MMaarrcchh AApprriill MMaayy JJuullyy AAuugg.. SSeepptt.. Avg. 1 2 3 4 Capacity (percent of 1987 output) 1967 65.0 65.3 65.5 65.8 66.1 66.4 66.7 67.0 67.3 67.6 67.9 68.2 65.3 66.1 67.0 67.9 66.6 1968 68.4 68.7 69.0 69.2 69.5 69.8 70.0 70.3 70.6 70.9 71.1 71.4 68.7 69.5 70.3 71.1 69.9 1969 71.7 71.9 72.2 72.4 72.7 72.9 73.2 73.4 73.7 74.0 74.2 74.5 71.9 72.7 73.4 74.2 73.1 1970 74.7 74.9 75.2 75.4 75.6 75.9 76.1 76.3 76.6 76.8 77.0 77.2 74.9 75.6 76.3 77.0 76.0 1971 77.5 77.7 77.8 78.0 78.2 78.4 78.6 78.8 79.0 79.2 79.4 79.6 77.7 78.2 78.8 79.4 78.5 1972 79.8 80.0 80.2 80.4 80.6 80.8 81.0 81.2 81.5 81.7 81.9 82.1 80.0 80.6 81.2 81.9 80.9 1973 82.3 82.5 82.7 83.0 83.2 83.4 83.6 83.9 84.1 84.3 84.5 84.8 82.5 83.2 83.9 84.5 83.5 1974 85.0 85.2 85.5 85.7 86.0 86.2 86.5 86.7 87.0 87.2 87.5 87.7 85.2 86.0 86.7 87.5 86.4 1975 87.9 88.1 88.3 88.5 88.7 88.9 89.1 89.2 89.4 89.6 89.8 90.0 88.1 88.7 89.2 89.8 89.0 1976 90.2 90.4 90.6 90.8 91.0 91.2 91.4 91.6 91.8 92.0 92.2 92.4 90.4 91.0 91.6 92.2 91.3 1977 92.6 92.8 93.1 93.3 93.5 93.7 94.0 94.2 94.4 94.6 94.8 95.1 92.8 93.5 94.2 94.8 93.8 1978 95.3 95.5 95.8 96.0 96.3 96.5 96.8 97.0 97.3 97.5 97.7 98.0 95.5 96.3 97.0 97.7 96.6 1979 98.2 98.4 98.7 98.9 99.1 99.4 99.6 99.8 100.0 100.3 100.5 100.7 98.4 99.1 99.8 100.5 99.5 1980 101.0 101.3 101.5 101.8 102.1 102.4 102.7 102.9 103.2 103.5 103.8 104.0 101.3 102.1 102.9 103.8 102.5 1981 104.3 104.6 104.9 105.2 105.5 105.8 106.1 106.4 106.7 107.0 107.3 107.6 104.6 105.5 106.4 107.3 106.0 1982 107.8 108.1 108.3 108.6 108.8 109.0 109.3 109.5 109.8 110.0 110.2 110.5 108.1 108.8 109.5 110.2 109.2 1983 110.7 110.9 111.1 111.3 111.6 111.8 112.0 112.2 112.4 112.6 112.8 113.1 110.9 111.6 112.2 112.8 111.9 1984 113.3 113.5 113.7 113.9 114.2 114.4 114.6 114.8 115.0 115.3 115.5 115.7 113.5 114.2 114.8 115.5 114.5 1985 116.0 116.2 116.5 116.8 117.1 117.3 117.6 117.9 118.2 118.4 118.7 119.0 116.2 117.1 117.9 118.7 117.5 1986 119.2 119.4 119.7 119.9 120.1 120.3 120.5 120.7 120.9 121.1 121.3 121.5 119.4 120.1 120.7 121.3 120.4 1987 121.7 121.9 122.1 122.3 122.5 122.7 122.9 123.1 123.3 123.5 123.7 123.9 121.9 122.5 123.1 123.7 122.8 1988 124.2 124.4 124.6 124.9 125.1 125.3 125.6 125.8 126.0 126.3 126.5 126.7 124.4 125.1 125.8 126.5 125.4 1989 127.0 127.2 127.5 127.7 128.0 128.2 128.5 128.8 129.0 129.3 129.5 129.8 127.2 128.0 128.8 129.5 128.4 Utilization (percent of capacity) 1967 88.7 87.3 86.4 86.8 85.7 85.3 84.8 86.0 85.5 85.8 86.7 87.3 87.5 86.0 85.4 86.6 86.4 1968 86.8 86.8 86.7 86.5 87.1 87.1 86.6 86.5 86.5 86.4 87.2 87.1 86.8 86.9 86.6 86.9 86.8 1969 87.3 87.6 87.9 87.3 86.7 87.2 87.4 87.3 86.9 86.7 85.6 85.0 87.6 87.1 87.2 85.8 86.9 1970 83.2 82.9 82.5 82.1 81.7 81.2 81.1 80.8 80.0 78.1 77.4 79.0 82.9 81.7 80.6 78.2 80.8 1971 79.3 79.0 78.7 79.0 79.2 79.3 78.9 78.2 79.3 79.7 79.8 80.6 79.0 79.1 78.8 80.0 79.2 1972 82.1 82.5 83.0 84.1 83.7 83.7 83.4 84.3 85.0 86.0 86.8 87.4 82.5 83.8 84.2 86.8 84.3 1973 87.3 88.2 88.0 88.0 88.2 88.6 88.9 88.6 89.1 89.2 89.0 87.3 87.8 88.3 88.9 88.5 88.4 1974 85.9 85.3 85.4 85.0 85.8 85.8 85.2 84.6 84.7 83.9 81.2 77.6 85.5 85.5 84.8 80.9 84.2 1975 75.4 74.1 72.6 73.1 72.7 73.5 73.8 75.0 75.6 75.8 76.4 76.8 74.0 73.1 74.8 76.3 74.6 1976 77.5 78.7 78.3 78.4 79.2 79.0 79.3 79.6 79.7 79.8 80.9 81.4 78.2 78.9 79.5 80.7 79.3 1977 81.5 81.7 82.3 83.3 83.8 84.2 84.0 83.9 84.2 83.9 83.8 83.2 81.9 83.7 84.0 83.7 83.3 1978 82.7 82.6 83.5 85.4 85.5 86.1 86.1 86.2 86.5 86.7 87.1 87.1 82.9 85.7 86.3 87.0 85.5 1979 86.6 87.2 87.3 86.2 87.0 86.7 86.0 85.4 85.5 85.8 85.3 85.0 87.0 86.6 85.6 85.4 86.2 1980 85.1 85.1 84.9 83.0 80.8 79.6 79.1 80.0 80.9 81.2 82.4 82.5 85.0 81.2 80.0 82.0 82.1 1981 81.6 81.7 81.7 80.7 81.1 81.3 82.1 81.7 81.1 80.2 79.1 78.2 81.7 81.1 81.6 79.2 80.9 1982 76.4 77.9 77.3 76.7 76.0 75.6 75.0 74.5 73.8 73.0 72.6 71.8 77.2 76.1 74.4 72.4 75.0 1983 73.0 72.8 73.2 73.9 74.6 74.9 76.1 77.1 78.2 78.7 78.7 78.9 73.0 74.5 77.2 78.8 75.8 1984 80.4 80.1 80.8 81.1 81.5 81.8 81.9 81.8 81.6 80.9 80.8 80.2 80.4 81.4 81.8 80.6 81.1 1985 80.3 80.7 80.7 80.9 80.9 80.5 80.0 80.2 80.4 79.6 79.7 80.4 80.6 80.7 80.2 79.9 80.3 1986 80.6 79.9 79.1 79.1 78.9 78.5 78.7 78.7 78.6 79.0 79.3 79.6 79.9 78.8 78.7 79.3 79.2 1987 79.3 80.1 80.4 80.3 80.9 81.6 82.0 82.0 81.8 82.8 82.6 82.8 79.9 80.9 82.0 82.7 81.4 1988 83.4 83.2 83.4 83.5 83.8 83.8 84.5 84.6 84.3 84.4 84.5 84.8 83.3 83.7 84.4 84.6 84.0 1989 84.8 84.6 84.5 85.0 84.6 84.6 83.9 84.0 83.9 83.4 83.5 83.7 84.6 84.7 84.0 83.5 84.2 1. Seasonally adjusted. an industry that operated much closer to capac- 86.1 to 83.2). For 1977, utilization based on the ity in 1982 than did the remainder of mining. linked series is 94 percent, 3 percentage points Thus, for 1982, utilization in total mining is higher than the 1977-weighted (unlinked) utilihigher if output and capacity are combined with zation rate of 91 percent. This result is unac- 1982 weights (86.1 percent) than if they are ceptable because, as the formulas show, the based on 1977 weights (83.2 percent). Linking unlinked capacity and output series combined capacity at 1982 raises all the utilization rates with value-added weights from the 1977 Cenfrom 1977 to 1981 by a factor of 1.035 (a ratio of suses of Manufactures and Minerals Industries Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 Federal Reserve Bulletin • June 1990 provide correct aggregate utilization rates for The time series of this preliminary, implied ca- 1977. pacity index often requires smoothing as ex- To minimize the distortion of mining utiliza- plained in step 2 of the methodology. tion caused by linking, the level of linked ca- The capacity indexes are then aggregated by pacity in 1977 is raised relative to linked output using the same base-period value-added weights so that the final utilization rate in 1977 is that are used in aggregating the comparable prorestored (lowered) to the unlinked rate. The duction indexes: aggregate capacity series is then fit (its growth rate is slowed by a constant amount) between (2) 20Pi,Qi,o • CJQ nP Qi.o• 0 ii0 it0 the adjusted 1977 level and the 1982 level so that no discontinuities result when new weights The assumption underlying the use of P in io are introduced. equation 2 is that base-period market prices In this revision, such adjustments have been (actually unit value added) are suitable for aggreapplied in half a dozen cases, where the distor- gating capacities. tions to the utilization rate caused by linking This results in aggregate capacity indexes seemed unacceptably large (more than 2 per- equal to the following: centage points): mining, metal mining, oil and gas extraction, stone and earth minerals, non- (3) xPi,oCiAPi,oQi,o• electrical machinery, and total industry. Given that the final aggregate estimates of Aggregation Formulas utilization are aggregates of industrial production indexes divided by the aggregate final capacity These formulas pertain to calculations before indexes and that an aggregate industrial produclinking and can be used to replicate results for the tion index equals the following ratio, period from 1987 to the present. Definitions: /—i-th industry (4) , t—Mh period £Pi,oQi,o o—base period U—utilization rate then an aggregate utilization ratio may be ex- C—capacity output pressed as the equation: Q—output P—Census unit value added (price). (5) u t = ^ gg^A, Given that U = QiJC and conversely that ^Pi,oQi,o ^Fi,oQi,o i t itt C = QiJU , and that (QiJQ ) is a production i t iit i>0 index, then the derived capacity index consistent Therefore, with the above production index is as follows: (6) U, = ^P^ QiAPi,oCi,f 0 (1) CJQ = (|QJQ )lU,,.'5 i>0 i>0 Thus, aggregate utilization rates reflect combinations of individual output and capacity series that 15. To simplify the formulas, we are expressing the prohave been weighted with base-period unit value duction indexes in terms of base-period output equal to one. The utilization rates are expressed as decimal fractions. added (P ii0 ). These aggregate utilization rates are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Industrial Capacity and Utilization 435 equivalent to capacity-weighted aggregates of utilization rates. Given that Q = C • U , and substituting i t i t it into equation 6, one obtains the following: (7) U = Z P ^ U J Z P ^ Q ,. t Thus, the aggregate utilization rates are equivalent to combinations of individual utilization rates combined with proportions that reflect current capacity levels of output (C ) valued in i t base-period Census value-added weights (P ). i o Availability of Capacity and Utilization Estimates Current estimates of output, capacity, and utilization are published first in the Federal Reserve Statistical Release G. 17(419), "Industrial Production and Capacity Utilization," and then in the statistical tables of the Federal Reserve Bulletin. All data shown in the release will be available on the day of issue through the Department of Commerce's online Economic Bulletin Board (202-377-3870). Historical data are available on magnetic tape from the National Technical Information Service (703-487-4650). Estimates for total industry and manufacturing, 1972 to the latest full year, are shown in tables 5A and 5B of the G.17 statistical release. Hard copy of the revised estimates of series shown in the G.17 release is available upon written request to Industrial Output Section, Mail Stop 82, Division of Research and Statistics, Federal Reserve Board, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 Industrial Production and Capacity Utilization Released for publication April 17 1 industrial capacity utilization increased 0.4 percentage point in March to 83.3 percent. Industrial production rose 0.7 percent in March Much of the rise in industrial production durafter having increased 0.8 percent in February; ing the past two months reflected large increases in the output of motor vehicles and parts, which had been curtailed sharply in January when its 1. For more information about the combined statistical operating rate fell to its lowest level since Janurelease for industrial production and capacity utilization, see p. 448 of this Bulletin. ary 1983. The other major contributor to the Industrial production indexes Twelve month percent change ./ / i^Tu^ Products A N! ~~ A /\ . /< —\ • \ \ \ fJ > .I t t Materials X*\V _ * / \ 1 1 1 1 1 ^ Wl Durable Vy\\ manufacturing \ / h V / V VW 7J/ t i/M Nondurable / _ manufacturing ^W 1 1 1 1 1 1985 1986 ' 1987 ' 1988-1 1989-1 1990" Total industry Ratio scale, 1987 production =100 Manufacturing Ratio scale, 1987 production = 100 120 120 Capacity 100 100 80 Production 80 60 J I I I I I I I I I I J I 60 Percent of capacity Percent of capacity 90 Utilization 85 80 75 70 197& t'tsh W W Wk u'sk W i97fe WJ 'l98i Wr lml6 All series are seasonally adjusted. Latest series: March. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

437 1987 = 100 Percentage change from preceding month Percentage change, Industrial production 1989 1990 1989 1990 Mar. 1989 to Mar. Dec/ Jan. Feb/ Mar/ Dec/ Jan/ Feb/ Mar." 1990 Total index 108.6 107.2 108.1 108.8 .4 -1.3 .8 .7 1.0 .1 --11..00 ..66 Major market groups Products, total 110.3 108.2 109.6 110.4 .8 -1.9 1.3 .7 1.6 Consumer goods 108.3 105.5 107.0 107.8 .8 -2.6 1.4 .8 .9 Business equipment 119.9 117.9 119.6 120.8 1.1 -1.7 1.4 1.0 2.5 Construction supplies 107.4 108.0 108.1 108.3 .3 .6 .1 .2 2.6 Materials 106.9 105.8 106.2 107.0 -.1 -1.0 .4 .7 .1 Major industry groups Manufacturing 108.8 108.0 109.2 109.5 -.1 -.7 1.1 .3 .8 Durable 110.4 108.6 110.5 111.5 .3 -1.6 1.7 .9 .5 Nondurable 106.7 107.3 107.5 107.0 -.5 .5 .2 -.4 1.1 Mining 100.1 102.4 100.8 101.4 -1.1 2.3 -1.6 .6 3.2 Utilities 116.1 103.9 102.6 109.0 7.2 -10.6 -1.2 6.1 1.7 Percent of capacity Capacity growth, CCaappaacciittyy uuttiilliizzaattiioonn 1989 1990 Mar. 1989 AAvveerraaggee,, HHiigghh,, to 1967-89 1988-89 Mar 1 QQfl Mar. Dec/ Jan/ Feb/ Mar." Total industry 82.2 71.8 85.0 84.5 83.7 82.4 82.9 83.3 2.5 Manufacturing 81.5 70.0 85.1 84.5 82.8 82.0 82.6 82.7 3.0 Advanced processing 81.1 71.4 83.6 83.4 81.8 80.4 81.5 81.7 3.2 Primary processing 82.3 66.8 89.0 87.3 85.2 85.6 85.4 85.1 2.4 Mining 87.3 80.6 87.3 83.6 86.3 88.5 87.2 87.8 -1.7 Utilities 86.8 76.2 92.3 85.6 92.3 82.5 81.5 86.4 .8 ''Revised. pPreliminary. NOTE. Indexes are seasonally adjusted. overall production increase in March was utility Business equipment excluding autos and output, which increased markedly as tempera- trucks edged down owing to a decline in the tures were more normal after an unseasonably production of information processing and related warm January and February. Elsewhere, produc- equipment, mainly office and computing mation was little changed, on balance, in March. chines. Output of industrial equipment rose 0.8 The rise in production of motor vehicles and percent in March but remained below its January parts pushed capacity utilization in manufac- level. Output of construction supplies rose turing up slightly in March; nonetheless, it re- slightly in both February and March; for the first mains below its level of a year ago. At 108.8 quarter as a whole, production rose more than percent of the 1987 annual average, total indus- 4V2 percent at an annual rate. trial production in March was 1.0 percent higher Output of materials rose sharply in March than it was a year earlier. owing mainly to a jump in the production of In market groups, output of products rose 0.7 energy materials, particularly electricity generapercent in March, with production of autos and tion. Among durable materials, the advance in the light trucks up nearly 16 percent. The rise in the production of components for motor vehicles was output of motor vehicles contributed to higher partially offset by a decline in output of basic metals. production of both consumer goods and business The output of nondurable goods materials fell, reequipment; excluding autos and trucks, output of flecting weakness in textiles and chemicals. consumer goods was about unchanged. Strong In industry groups, production in manufacgains in appliance production and utility output turing increased 0.3 percent in March, bringing for residential use were offset by decreases in the the factory operating rate up slightly to 82.7 production of foods and gasoline. percent. This rise stemmed mostly from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 Federal Reserve Bulletin • June 1990 sharp increases in production of motor vehicles while the rate for primary processing industries and parts, as well as from output gains for the fell. Rates for both advanced and primary profabricated metals and rubber and plastics indus- cessing industries have dropped during the past tries, which manufacture some motor vehicle year. Among the advanced processing industries, components. Production at utilities rose 6.0 per- significant declines have occurred in operating cent in March while mining output increased a rates for motor vehicles and parts, furniture and bit. Utilization rates for both mining and utilities fixtures, and printing and publishing. Major conwere near their 1967-89 average. Within mining, tributors to the decline in primary processing an extended period of weakness for oil and gas include primary metals, textiles, chemicals, and well drilling has been offset by relatively high rubber and plastics products. Even so, the utilioperating rates elsewhere. zation rates for most of these primary processing Within manufacturing, capacity utilization for industries remain above their long-run averages, advanced processing industries rose in March as does the total primary processing rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

439 Statements to the Congress Statement by Alan Greenspan, Chairman, Board abroad of U.S. financial intermediaries. This of Governors of the Federal Reserve System, surge in cross-border financial transactions has before the Task Force on the International Com- paralleled a large advance in the magnitude of petitiveness of U.S. Financial Institutions, Sub- cross-border trade of goods and services. committee on Financial Institutions Supervision, A key factor behind these trends in interna- Regulation and Insurance of the Committee on tional trade and securities transactions is a pro- Banking, Finance and Urban Affairs, U.S. cess that I have described elsewhere as the House of Representatives, April 4, 1990. "downsizing of economic output." By this I mean that the creation of economic value has I am pleased to appear before the Task Force this shifted increasingly toward conceptual values afternoon. The issues you are raising are both with decidedly less reliance on physical volumes. wide-ranging and of immense importance to the Today, for example, major new insights have led evolution of the financial system. I could not to thin fiber optics replacing vast tonnages of possibly do justice to all of them this afternoon. copper in communications. Financial transac- What I will attempt to do, and what I hope will be tions historically buttressed with reams of paper useful to you, is first to describe the global are being progressively reduced to electronic environment in which U.S. financial firms are charges. Such advances not only reduce the likely to be operating over the foreseeable future. amount of human physical effort required in Against this background, I will comment on the making and completing financial transactions effectiveness of U.S. banks' competition today across national borders, but also facilitate more and will then discuss some policy implications. accuracy, speed, and ease in execution. Underlying this process have been quantum advances in technology, spurred by economic GLOBALIZATION OF FINANCIAL MARKETS forces. In recent years, the explosive growth in information-gathering and processing techniques Globalization and interdependence are becoming has greatly extended our analytic capabilities of the dominant elements of world finance. Foreign- substituting ideas for physical volume. The purbased financial intermediaries play an increas- pose of production of economic value has not ingly prominent role in U.S. financial markets, changed and will not change. It will continue, as and foreign investors are adding to their already before, to serve human needs and values. But the significant holdings of U.S. financial and other form of output increasingly will be less tangible assets. The volume of transactions by foreigners and hence more easily traded across internain U.S. securities markets has increased even tional borders. It should not come as a surprise, more dramatically than foreign holdings. For therefore, that in recent decades the growth in example, foreign purchases and sales of U.S. world trade has far outstripped the growth in Treasury securities surpassed $4 trillion on a domestic demand for goods and services. This gross basis in 1989, up from $100 billion to $200 development, of necessity, implies that on averbillion early in the decade. Similarly, foreign age the share of imports as a percentage of gross purchases and sales of U.S. corporate stocks and domestic product has grown dramatically worldbonds have been running dramatically above wide. Since irreversible conceptual gains are rates early in the decade. U.S. purchases and propelling the downsizing process, these trends sales of foreign stocks and bonds also increased almost surely will continue into the twenty-first sharply during the 1980s, as did the activities century and beyond. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 Federal Reserve Bulletin • June 1990 New technology—especially computer and dollar. For the same reason, many foreign finantelecommunications technology—is boosting cial institutions find it beneficial to be repregross financial transactions across national bor- sented by banking offices in this country so that ders at an even faster pace than the net transac- they can play an intermediary role based in tions supporting the increase in trade in goods dollars. and services. Rapidly expanding data processing Another factor facilitating the globalization of capabilities and virtually instantaneous informa- capital markets and the growth of foreign investtion transmission are facilitating the development ments in the United States has been deregulation of a broad spectrum of complex financial instru- here and abroad. Technological change and inments that can be tailored to the hedging, fund- novations that have tied international economies ing, and investment needs of a growing array of more closely together have increased opportunimarket participants. These types of instruments ties for arbitrage around domestic regulations, were simply not feasible a decade or two ago. controls, and taxes, undermining the effective- Some of this activity has involved an unbundling ness of these policies. Many governments have of financial risk to meet the increasingly special- responded by dismantling increasingly less effecized risk management requirements of market tive domestic regulations designed to allocate participants. Exchange rate and interest rate credit and by removing controls on international swaps, together with financial futures and op- capital flows, relying more heavily instead on tions, have become important means by which market forces to allocate capital. currency and interest rate risks are shifted to The globalization of capital markets offers those more willing to take them on. The prolif- many benefits in terms of increased competition, eration of financial instruments, in turn, implies reduced costs of financial intermediation benean increasing number of arbitrage opportunities, fiting both savers and borrowers, more efficient which tend to boost further the volume of gross allocation of capital, and the more rapid spread financial transactions in relation to output and of innovations. trade. Moreover, these technological advances and innovations have reduced the costs of managing operations around the globe and have facilitated international investment. COMPETITIVE POSITION OF U.S. BANKS Investment considerations also are playing an important role in the globalization of securities A proper assessment of how well U.S. banks are markets. As the economy of the United States competing today in the new globally competitive becomes increasingly intertwined with foreign setting must recognize several points. First, U.S. economies, it is to be expected that both individ- banks are not all alike. In particular, only a very ual investors and institutions will raise the share small subset of U.S. banks is active internationof foreign securities in their investment portfo- ally. Second, among those internationally active lios. Such diversification provides investors a banks, the extent to which they are competitive means of protecting against the prospect of de- varies across products and over time. Third, preciation of the local currency on foreign ex- particularly with the considerable intermediation change markets and against domestic economic involving foreign lenders and borrowers in this disturbances affecting asset values on local mar- country and U.S. lenders and borrowers abroad, kets. As international trade continues to expand it follows that simple measures of competitivemore rapidly than global output and as domestic ness based on gross assets of national banking economies become even more closely linked to systems must be interpreted with care. Let me those abroad, the objective of diversifying port- elaborate on these points. folios of international securities will become in- We have nearly 10,000 banking organizations creasingly important. Moreover, since the U.S. in this country—treating a multibank holding dollar is still the key international currency, such company as one firm. They vary significantly in diversification has been, and may continue to be, terms of size, the nature of their business, and disproportionately into assets denominated in the the areas they serve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 441 The great bulk of U.S. banking organizations, held by the bank. These activities, such as risk by number, are fairly small, functioning as inter- management involving relatively high-tech, somediaries largely between local savers and local phisticated products, are also the areas in which household and business borrowers. However, U.S. banks remain among the world's leaders. some of these local banks have become quite It has become commonplace to express conlarge and have evolved into sizable regional cern about the increasing share of U.S. banking banks. The regional, or superregional, banks markets that is controlled by foreign banks, or draw on a large base of core retail deposits and the declining standing of major U.S. banks in serve needs of retail borrowers in their regions, international rankings of the world's largest but they also do a large and growing corporate banks. However, measures of total assets, or business. These banks generally are strongly market shares related to particular national marcapitalized and so can support growth in their kets, can be very misleading as measures of portfolios. It is these banks that have experi- international competitiveness, partly for reasons enced the fastest growth in the United States I have already mentioned: Only a handful of U.S. over the past decade, benefiting importantly from banks are internationally active, and a significant existing interstate banking compacts. element of their international business does not International banking—that is, involving trans- show up on their balance sheets. Moreover, actions that extend across geographic borders— banks' operations can be booked at locations has not been an important business for regional throughout the world, and the large businesses banks. International assets typically have been that borrow from foreign banks in the United less than 5 percent of a regional bank's total States themselves operate around the world and assets. Instead, international banking is, and has can, and do, borrow from the same lenders at been, concentrated in a small number of U.S. many spots on the globe. banks. Four out of the 10,000 U.S. banking Nevertheless, some have argued that U.S. organizations account for roughly half of interna- banks are becoming less competitive as a result tional assets; ten of them account for a little more of the increasing relative size of their foreign than 80 percent. bank rivals. While it is important to make sure For those banks involved in it, the nature of that we understand why foreign banks have the international business has changed. As I grown relatively quickly, there is no evidence in noted previously, technological innovations, as the professional literature that the size of an well as the need for large investors and borrow- internationally active bank by itself has a signifers to protect themselves against the increased icant bearing on a bank's costs or efficiency. To volatility in asset prices that we experienced in be sure, that literature has not specifically adthe 1980s, have led to an unbundling of financial dressed the possibility that some economies of products. With this unbundling and the more super scale could be realized by extremely large efficient dissemination of information, the value banks. But even if so-called economies of super of the banking franchise—to the extent that it scale exist, such economies would need to be of was based on a unique role in evaluating credit significant magnitude to draw inferences about risks—has eroded. The international role of the competitiveness among major internationally acbanks has changed from one of simply extending tive banks. Our research suggests that cost concredit to one of facilitating transactions. Partly trols and differences in management across for this reason, and partly also to economize on banks of the same size are more relevant for costly equity capital, U.S. banks have tended to competitiveness than any economies of super cut back on those activities that result in assets scale are likely to be. that must be booked on a balance sheet. For Having said that, I hasten to confess that I example, they have chosen to reduce drastically cannot offer you satisfactory alternative meatheir interbank lending business, which is essen- sures of competitiveness. Conceptually, I believe tially a high-volume, low-spread business. U.S. that profitability, as measured by rates of return banks have devoted their resources instead to on equity or assets, is a proper measure of banking services that often do not result in assets competitiveness. In practice, it is difficult to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 Federal Reserve Bulletin • June 1990 obtain comparable, up-to-date data on banks firms' earnings relative to earnings of U.S. firms from various countries, or to adjust the data that and hence to overstate price-earnings ratios in we do have for differences in tax or accounting Japan. Minority interests are not completely consystems. It would be necessary also to adjust solidated in Japanese financial statements. Japarealized rates of return for risk; banks can realize nese firms issue the same report for tax purposes higher rates of return at least over some period of and for stockholders so that their financial statetime by engaging in riskier activities, but of ments fully reflect the maximum deductions from course those returns are likely to be more vola- earnings for such items as depreciation that can tile. be taken for tax purposes; in contrast, U.S. firms However, rather than dwell on comparing the issue different reports for tax purposes and for competitiveness of U.S. banks versus foreign stockholders. Japanese share prices also reflect banks, I suggest that it is more important to focus considerable cross-holdings of equities and of on the performance of U.S. banks themselves. land, both of which have risen sharply in value in From the perspectives of the U.S. financial sys- recent years without contributing commensutem, of shareholders of U.S. banks, and most rately to reported earnings. It remains to be seen importantly of U.S. consumers of financial ser- whether the recent weakening in Japanese stock vices, it is desirable that U.S. banks be operated markets is signalling an end to such increases, in as low cost and efficient a manner as possible, but in any event the benefits of such holdings will subject to concerns about their safety and sound- not be captured in earnings unless the assets are ness. This would be true even if U.S. banks sold. already were the most competitive banks in the However, even after adjusting for accounting world. If we get bogged down in struggling to differences, one is left with real economic differmake comparisons of competitiveness, policy- ences. Besides Japanese firms' holdings of equimakers risk losing sight of the fundamental need ties and land, analysts point to the high Japanese to ensure that government policy does not hin- savings rate, an expectation of strong growth of der, but rather enhances, in an absolute sense the earnings, and more generally, the overall macrocompetitiveness of U.S. banks and financial economic performance of Japan. These latter firms. economic differences are under the influence of the policymakers. I, among many others, refer often to the substantial decline in the national POLICY IMPLICATIONS savings rate in the United States. All other things being equal, our lower savings causes a higher What, then, can the government do to enhance real interest rate, raising the cost of capital in the the competitiveness of U.S. banks? Perhaps the United States and lowering private investment. most important thing to do is to reduce the cost Although higher real interest rates themselves of capital to U.S. banks. By the cost of capital, I may encourage more private savings, reducing mean broadly the cost to a bank of raising equity our fiscal deficit would be a more certain way to and debt, or more precisely the real pretax rate of add to savings available for private investment, return it must pay to attract debt and equity lower the cost of capital, and thereby increase funds to finance its portfolio of assets. It is often the potential competitiveness of U.S. financial argued that U.S. banks are at a competitive and nonfinancial firms. disadvantage because their cost of capital is more Government policy also has a constructive role than that of their foreign rivals. to play in avoiding macroeconomic instability. If For example, the Japanese stock market investors think that U.S. banks, for example, places very high price-earnings ratios on Japa- face a more risky macroeconomic environment, nese equities, and some have argued that the they will expect lower or less stable earnings resulting lower cost of equity capital gives Japa- and, therefore, will be willing to pay less for each nese firms a competitive edge over U.S. firms. dollar of such earnings. However, the use of different accounting con- Beyond changing the macroeconomic environventions in Japan tends to understate Japanese ment, the government should consider structural Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 443 policies that could also help the competitiveness distinct, banking and securities supervisors must of U.S. banks. For example, there is reason to work more closely together. The aims of such believe that the opportunity for a bank to diver- coordination are basically twofold. One is to sify the products or services it offers or to monitor and ultimately guard against risks to the diversify geographically may, in some cases, financial system—risks that are becoming inraise its rate of return and lower its risk. In creasingly global and complex in nature. The addition, our laws greatly inhibit the ability of other is to minimize the extent to which legiti- U.S. banks to evolve along with technological mate prudential concerns distort the opportuniand other changes and to achieve the synergies ties for different kinds of financial firms, from that come from producing multiple, but similar, different countries, to compete fairly with one products and services. Particularly burdensome another. in this regard is the Glass-Steagall Act. There That leads me to my final point. We should has been some liberalization in recent years both continue our informal and formal, bilateral and in geographic restrictions, through regional bank- multilateral, efforts to open domestic markets ing compacts, and in securities activities, abroad to U.S. and other foreign banks, both in through section 20 securities subsidiaries. But terms of access and scope of activities. Much the ad hoc nature of this process of liberalization progress has been made in this area over recent is not a desirable way of approaching significant years, in large part, I believe, because the worldstructural reform. The Federal Reserve has sup- wide process of financial integration that I disported, and continues to support, congressional cussed earlier is forcing a liberalization of marefforts to address these matters in a more sys- kets. In some instances, diplomatic initiatives on tematic way. our part may also have affected the nature of that Other areas to consider involve those rules and progress or its timing; such efforts should conregulations that can impinge on banks' costs. tinue. Examples include non-interest-bearing reserve In this regard, however, it would clearly be requirements, deposit insurance premiums, cap- counterproductive to close our own markets to ital standards, antitrust laws, consumer protec- foreign competition merely because foreign martion laws, and laws to deal with money launder- kets are less open than we would like. Such an ing. I am not suggesting that they be abandoned action would invite retaliation and would not be simply because they impose costs on banks. very effective in any case. The globalization of What I am suggesting, however, is that we be financial markets means that most of the business cognizant of such costs when we weigh the that foreign banks do with U.S. customers could benefits of our policies in terms of our other alternatively be done offshore. To the limited objectives. Social and regulatory policies are not extent that closing of our markets to foreigners free, no matter how desirable they may be per- was effective, and that U.S. firms were thereby ceived to be. protected from foreign competition, the result On the supervisory side, we are proceeding would be reduced pressure on U.S. banks and on with the implementation of the risk-based capital U.S. policymakers to implement the policies and standards that were negotiated in Basle. Efforts management procedures necessary to improve also are under way to coordinate other aspects of the underlying competitiveness of U.S. banks. In supervisory policy, with respect to both banking the long run, this result would clearly be harmful and other financial services. As banking and to the best interests of both U.S. consumers and other financial services become increasingly in- U.S. producers of financial services. • Additional statement follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 Federal Reserve Bulletin • June 1990 Statement by Manuel H. Johnson, Vice Chair- act. The most significant exception to this prohiman, Board of Governors of the Federal Reserve bition is for companies whose activities the System, before the Subcommittee on Financial Board has determined to be closely related to Institutions Supervision, Regulation and Insur- banking. In 1982, the Congress specifically legisance of the Committee on Banking, Finance and lated, however, that insurance activities, with Urban Affairs, U.S. House of Representatives, certain specified exceptions, are not closely re- April 4, 1990. lated to banking. As a result, the Congress removed the Board's discretion to permit these activities for bank holding companies and their I appreciate the opportunity to be here today to nonbank subsidiaries as an exception to the present the views of the Federal Reserve Board general nonbanking prohibition in the Bank on the implications of the decision of the U.S. Holding Company Act. The Congress has not, Court of Appeals upholding the Board's order in however, separately prohibited insurance activithe Merchants National case. The decision is ties for institutions not subject to the nonbanking important for two reasons: the legal conclusion restrictions of the act. reached regarding the applicability of the Bank The nonbanking restrictions of the Bank Hold- Holding Company Act to the direct activities of ing Company Act do not, by their terms, apply to banks owned by bank holding companies, as well the acquisition of shares of banks or to the as the potential significance of the case for the activities conducted directly by banks owned by regulation and supervision of the activities of bank holding companies. The Board has so interfederally insured banks and for the resources of preted the provisions of section 4 of the Bank the federal safety net. Holding Company Act since the act's passage The Merchants National case involved a pro- in 1956, and it reaffirmed that interpretation in posal by Merchants National Corporation, an the Merchants National decision. Thus, insofar Indiana bank holding company, to acquire and as the nonbanking restrictions of the Bank retain two Indiana state banks that engaged di- Holding Company Act are concerned, state rectly in certain general insurance agency activ- banks may conduct directly those activities that ities that were permitted state banks under Indi- are authorized by state law, including the insurana law. One of these banks had conducted the ance agency activities at issue in Merchants insurance agency activities since its founding in National. 1916. There is one caveat to this Board interpreta- As required by the Bank Holding Company tion. When the record indicates that a bank Act, Merchants National filed applications with holding company is attempting to evade the the Board for prior approval to acquire the restrictions of the act by conducting activities banks. Various insurance industry trade groups directly in the bank, the Board has applied the protested the applications, urging the Board to restrictions of section 4 of the act to the proposed prohibit the banks from selling insurance after activities. The Board took such action on a 1985 their acquisition by Merchants National. The application by Citicorp to acquire a bank in protest turned on whether the nonbanking provi- South Dakota when the bank's principal purpose sions of the Bank Holding Company Act apply to was to market insurance services throughout the the direct activities of banks owned by a bank United States—except in South Dakota. holding company in the same manner that these The Board found, based on the structure of the provisions apply to the bank holding company South Dakota law and the fact that the South itself and to its nonbank subsidiaries. Dakota bank would serve almost exclusively as Section 4 of the Bank Holding Company Act an insurance subsidiary of Citicorp and conduct generally provides, with certain exceptions, that only insignificant banking activities, that the aca bank holding company may not directly, or quisition of the bank was primarily, if not solely, indirectly, acquire or retain the voting shares of for the purpose of enabling Citicorp to engage any company that is not a bank or engage in any through the bank in various insurance activities. activity other than those authorized under the Accordingly, the Board determined that it was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 445 precluded from approving Citicorp's applica- its decision from time to time in light of its tion because the acquisition was simply a de- experience in administering the act. vice to allow Citicorp to engage in insurance In December 1988, in light of the increase in activities prohibited for bank holding compa- the conduct of nontraditional activities, such as nies under section 4 of the Bank Holding Com- real estate development, by state bank operating pany Act. In contrast, in the Merchants Na- subsidiaries, the Board asked for comment on tional case, the acquired banks were whether the 1971 regulation should be modified. conducting a full banking business and the The Board held a hearing on its proposal in April banks' insurance agency activities were a small 1989 and has not taken further action on the part of the bank's business and were to be proposal. conducted entirely within Indiana. Besides its significance for interpreting the I would also emphasize that the Board's Mer- scope of the Bank Holding Company Act, the chants National interpretation pertains only Merchants National decision also has important when the nonbanking activities are conducted implications for the regulation and supervision of directly by a holding company bank. The Mer- the direct activities of holding company banks. chants National decision does not address the Had the court decided the Merchants National situation in which activities are conducted by a case the other way and determined that the direct nonbank company whose shares are controlled activities of holding company banks are subject by a holding company bank. The Board has to the nonbanking restrictions of the Bank Holdconsistently taken the position, in accordance ing Company Act, the activities of these banks with the explicit terms of the act, that shares of a would be limited to those that the Board has nonbank company owned by a holding company determined by regulation or order to be closely bank are indirectly controlled by the parent hold- related to banking. ing company and, thus, a nonbank company The fact that the Court held that the direct controlled by a holding company bank would be activities of holding company banks are not an indirect subsidiary of the parent holding com- subject to the nonbanking restrictions of the act pany. As such, the ownership of the shares of the does not mean, however, that their activities are company by the bank holding company, as well unregulated. The activities of national banks are as the activities of the company, must qualify determined by the Comptroller of the Currency under the closely related to banking exception, under the provisions of the National Bank Act, or one of the other exceptions to the nonbanking and the activities of state-chartered banks are provisions in the act. determined by the state banking laws under the In a 1971 regulation, however, the Board rec- supervision of the state banking commissioner. ognized a limited exception to this requirement The activities of state banks are further regulated for the acquisition of so-called operation subsid- at the federal level—by the Federal Deposit iaries by holding company banks. The regulation Insurance Corporation (FDIC), in the case of authorizes a state bank owned by a bank holding insured state nonmember banks, and by the company to acquire and retain, without Board Board, in the case of state banks that are memapproval under the act, all of the voting shares of bers of the Federal Reserve System. a company so long as the company engages In exercising its supervisory authority over solely in activities the parent bank could conduct state member banks, the Board has recognized directly and only at a location at which the bank the interest of the states in regulating banking could conduct the activities. The purpose of this within their borders. The dual banking system regulation was to permit holding company state has contributed, on balance, to the flexibility and banks to compete on an equal footing with state resiliency of the banking system and has helped banks that are not in a holding company system. make it more responsive to the needs of both The Board recognized that the regulation could business and consumers. Nevertheless, a serious potentially become the focus for evasion of the question must be raised about any state action nonbanking restrictions of the act over time, and that might have the potential of posing undue risk therefore stated that it would review the merits of to the resources of the federal safety net. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 Federal Reserve Bulletin • June 1990 framework in place for regulating and supervis- not make direct investments in securities of less ing state banks ensures that the federal interest is than investment grade, even when they are pertaken into account. While the states, as the mitted to do so under their state charters. On the chartering authority, establish in the first in- other hand, the Board has not found state authostance those activities that are permissible for rization of insurance agency activities that could state banks, limitations may be placed on these be comparable to those conducted by Merchant activities by the Board, in the case of state National's subsidiary banks or of similar agency member banks, and by the FDIC, with respect to activities to be inconsistent with Federal Reserve nonmember federally insured banks. membership. Agency activities do not raise the The Board has ample statutory authority, un- risk-related and competitive concerns that would der the Federal Reserve Act and related statutes, justify placing restrictions on the state-authoto ensure that the activities of a state member rized powers. bank are consistent with safe and sound banking Under the Federal Deposit Insurance Act and practices and do not pose an undue risk of loss to related statutes, the FDIC possesses authority the federal safety net. Furthermore, as rein- that parallels that of the Board. Just as the Board forced by the International Lending Supervision considers corporate powers of a state bank when Act, these statutes enable the Board to require it acts on a bank membership application, the state member banks to maintain capital that is FDIC may take into consideration whether the adequate in relation to the character and condi- corporate powers of a nonmember state bank are tion of its assets and liabilities. The Board also consistent with the purposes of the Federal Dehas authority, under the Financial Institutions posit Insurance Act when it acts on an applica- Supervisory Act, as further amended and tion for deposit insurance. strengthened by the Financial Institutions Re- In enacting some of the key reform provisions form, Recovery, and Enforcement Act of 1989 of the FIRREA, the Congress recognized the (FIRREA), to prevent, by order or rule, state risk to the federal safety net that can be caused member banks from engaging in activities that when federally insured state-chartered thrift are unsafe or unsound. institutions are allowed to engage in a broad In granting applications by state banks to be- range of activities without adequate regard for come members of the Federal Reserve System, the federal interest. In that statute, the Conthe Board takes into consideration whether the gress prohibited a state thrift institution from conduct of certain activities directly by banks engaging as principal in any type of activity that could have a seriously adverse effect on the is not permissible for a federal thrift institution safety and soundness of the institution and on the unless both parts of a two-part test are satisfied: nation's banking system. The Board has required (1) The FDIC has determined that the activity in that banks applying for membership in the Fed- question would pose no significant risk of loss eral Reserve System not engage in activities that to the deposit insurance fund, and (2) the thrift the Board views as posing an undue risk for an institution has sufficient capital to meet the fully institution with access to the federal safety net. phased-in capital standards prescribed in that In addition, a state member bank may not, with- statute. It should be noted that the legislative out obtaining the approval of the Board, cause or history of the FIRREA made it clear that the permit any change to be made in the general test of a "significant risk" of loss to the deposit character of its business or in the scope of its insurance fund is not the relative or absolute corporate power exercised at the time of its size of the potential loss, but whether there is admission to membership. significant risk that the insurance fund will For example, the Board has, as a general suffer a loss if a state thrift institution engages condition of membership, not permitted state in the activity. member banks to engage in real estate develop- The FIRREA also prohibits a state thrift instiment activities, even though approximately tution from acquiring or retaining any equity twenty-five states permit banks to engage in such investment of a type or in an amount that is not activities. Similarly, state member banks may permissible for a federal thrift institution to ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 447 quire and retain directly. This prohibition would its authority to prevent activities or investments apply to investments in real estate and equity considered to be too risky for a depository instisecurities. There is an exception for service tution with access to the federal safety net. corporations, when the FDIC determines that the In conclusion, the Board believes that it has investment would not pose any significant risk of correctly interpreted the Bank Holding Company loss to the deposit insurance fund and when the Act in the Merchants National case in determinthrift institution meets applicable capital stan- ing that the nonbanking restrictions of that act do dards on a fully phased-in basis. not apply to the direct activities of holding com- The Board does not believe that legislative pany subsidiary banks. While the conduct of provisions similar to those discussed above are nonbanking activities by depository institutions necessary to limit the activities of state-chartered that have access to the federal safety net requires banks, since a system similar to that adopted by close attention, the Board also believes that the the Congress is already in place. As I have current regulatory scheme, which includes feddiscussed, the activities of state banks are cur- eral supervision and regulation of state-chartered rently subject to the oversight of the FDIC or the federally insured institutions, is adequate to en- Federal Reserve, as the case may be. In the case sure the appropriate degree of supervisory of state member banks, the Board has exercised oversight. • On May 8, 1990, Alan Greenspan, Chairman, Commission. The testimony was virtually identi- Board of Governors of the Federal Reserve Sys- cal to that in "Statement by Alan Greenspan, tem, presented testimony before the Senate Chairman, Board of Governors of the Federal Committee on Agriculture, Nutrition, and For- Reserve System, before the Subcommittee on estry. The subject was the allocation of jurisdic- Securities of the Committee on Banking, Houstion for the regulation of securities markets be- ing, and Urban Affairs, U.S. Senate, March 29, tween the Commodity Futures Trading 1990," Federal Reserve Bulletin, vol. 76 (May Commission and the Securities and Exchange 1990), pp. 319-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 Announcements CHANGES IN STATISTICAL RELEASES trial Output Section, mail stop 82, Division of ON INDUSTRIAL PRODUCTION AND Research and Statistics, Federal Reserve Board, CAPACITY UTILIZATION Washington, D.C. 20551. Data shown on this release are available on the The Industrial Production and Capacity Utiliza- day of issue through the online Economic Bulletion release G.17 (419) combines information tin Board of the Department of Commerce (202) previously published in the separate statistical 377-3870. releases Industrial Production G.12.3 and Capacity Utilization G.3 (402). Effective with the April 1990 release, statistics on industrial production, UNIFORM OPERATING HOURS capacity, capacity utilization, and electric power FOR SOME FEDWIRE SERVICES use have been revised. The Federal Reserve Board announced on April Points of Information 30, 1990, establishment of uniform operating hours for the Fedwire funds transfer and book- • The industrial production and capacity inentry securities transfer services. dexes are aggregated on the basis of 1987 value- The changes, which become effective August added weights; industrial production and electric 1, 1990, will accomplish the following: power have been rebased to 1987. Revisions date • Establish a uniform deadline of 6:00 p.m. from 1977 for industrial production; from 1967 eastern time for third-party funds transfers. for capacity and capacity utilization; and from • Conform the book-entry securities service 1972 for electric power. closing time in the Twelfth District with that in all • The revisions to the index of industrial proother Districts. duction are reviewed in an article, "Industrial • Establish a uniform opening of 8:30 a.m. Production: 1989 Developments and Historical eastern time for the funds transfer and book- Revision," Federal Reserve Bulletin, vol. 76 entry securities transfer services. (April 1990), pp. 187-204. The separate system of These changes are intended to promote comcapacity utilization for materials has been dispetitive equity and increase the efficiency of continued. Many of its components have been financial markets. folded into the revised estimates for mining and manufacturing (see tables 3 and 4 of the release). The revisions and structure modifications to the capacity and capacity utilization statistics appear PROPOSED ACTIONS in "Recent Developments in Industrial Capacity and Utilization" on pp. 411-35 of this Bulletin. The Federal Reserve Board on April 4, 1990, • Historical data are available on magnetic tape requested comment on revisions to Regulation P from the National Technical Information Service (Minimum Security Devices and Procedures for (703) 487-4650. The revised estimates of produc- Federal Reserve Banks and State Member tion, capacity, and utilization for total industry Banks). Comment is requested by June 4, 1990. and total manufacturing are shown in tables 5A The Federal Reserve Board issued for public and 5B of the release. Hard copy of the revised comment on April 30, 1990, a proposal that the estimates of individual series shown in this re- Federal Reserve Banks notify by telephone all lease is available on written request to the Indus- off-line depository institutions of the receipt of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

449 incoming Fedwire funds transfers. Comment is tained on request to Publications Services, requested by July 3, 1990. Board of Governors of the Federal Reserve System, Washington, D.C. 20551. A separately ANNUAL REPORT: PUBLICATION printed companion document, entitled Annual Report: Budget Review, 1989-90, describes the The 76th Annual Report, 1989, of the Board of budgeted expenses of the Federal Reserve Sys- Governors of the Federal Reserve System, cov- tem for 1990 and compares them with expenses ering operations for the calendar year 1989, is for 1988 and 1989; it is also available from available for distribution. Copies may be ob- Publications Services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

451 Legal Developments FINAL RULE—AMENDMENT TO REGULATIONS Cambridge Instrument Company, PLC, The: Ameri- G, T, U AND X can Depositary Receipts Canal-Randolph Limited Partnership: Units of limited The Board of Governors is amending 12 C.F.R. Parts partnership 207, 220, 221, and 224, its Securities Credit Transac- Cityfed Financial Corp.: Series C, $.40 junior pretions; List of Marginable OTC Stocks. The List of ferred Marginable OTC Stocks is comprised of stocks traded Cobb Resources Corporation: $.10 par common over-the-counter (OTC) that have been determined by Commercial National Corp.: $5.00 par common the Board of Governors of the Federal Reserve Sys- Continental General Corporation: $.01 par common tem to be subject to the margin requirements under certain Federal Reserve regulations. The List is pub- Detroit & Canada Tunnel Corporation: $5.00 par comlished four times a year by the Board as a guide for mon lenders subject to the regulations and the general Diversified Investment Group, Inc.: $.01 par common public. This document sets forth additions to or deletions from the previously published List which was Empire-Orr, Inc.: $.01 par common effective February 12, 1990, and will serve to give notice to the public about the changed status of certain Fairfield-Noble Corporation: $.10 par common stocks. Florida Federal Savings Bank: $.01 par common Effective May 14, 1990, accordingly, pursuant to the authority of sections 7 and 23 of the Securities Ex- Germania Bank, A Federal Savings Bank (Illinois): change Act of 1934, as amended (15 U.S.C. §§ 78g and $.01 par common 78w), and in accordance with 12 C.F.R. 207.2(k) and Goodheart-Wilcox Company, Inc.: $1.00 par common 207.6(c) (Regulation G), 12 C.F.R. 220.2(s) and 220.17(e) (Regulation T), and 12 C.F.R. 221.2(j) and Hamilton Oil Corporation: Series A, $1.00 par cumu- 221.7(c) (Regulation U), there is set forth below a lative preferred listing of deletions from and additions to the Board's Hughes Homes, Inc.: $.01 par common List of Marginable OTC Stocks: Warrants (expire 06-08-93) Hytex Microsystems, Inc.: No par common Deletions from the List of Marginable OTC Stocks Imreg, Inc.: Class A, $.05 par common Louisville Gas and Electric Company: 7.45% cumula- Stocks Removed for Failing Continued Listing tive preferred Requirements McGill Manufacturing Co., Inc.: No par common Alpha 1 Biomedicals, Inc.: $.001 par common Megadata Corporation: $.01 par common Ambassador Financial Group, Inc.: $.01 par common Merchants Capital Corporation: Class B, $.10 par Atlantic Financial Federal: $1.00 par common common Series A, $1.00 par cumulative convertible pre- Miniscribe Corporation: $.01 par common ferred 7-1/2% convertible subordinated debentures Benj. Franklin Federal Savings and Loan Association, National Properties Corporation: $1.00 par common The: $1.00 par common Brae Corporation: $1.00 par common Old Kent Financial Corporation: Series A, 14% convertible preferred California Biotechnology, Inc.: Warrants (expire Old Republic International Corporation: Series E, 12-31-91) $1.00 par convertible preferred Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 Federal Reserve Bulletin • June 1990 P & F Industries, Inc.: $10.00 par cumulative Jaguar, PLC: Sponsored American Depositary preferred Receipts Pharmacontrol Corporation: $.01 par common Pioneer Savings Bank, FSB: $1.00 par common Merry-Go-Round Enterprises, Inc.: $.01 par common Metropolitan Bancorp, Inc.: $5.00 par common Q-Med, Inc.: $.001 par common Microamerica, Inc.: $.01 par common Mindscape, Inc.: $.00001 par common Resdel Industries: No par common Robeson Industries Corp.: $.10 par common North Fork Bancorporation, Inc.: $2.50 par common Northwestern States Portland Cement Company: Seagull Energy Corporation: $1.00 par convertible $10.00 par common preferred Novar Electronics Corporation: No par common Silver Hart Mines, Ltd.: No par common Simmons First National Corporation (Arkansas): Paxton, Frank Company: Class A, non-voting, $2.50 Class A, $5.00 par common par common Plains Resources Inc.: $.02 par common Texcel International, Inc.: $.01 par common TGX Corporation: $.01 par common QED Exploration, Inc.: No par common TM Communications, Inc.: $.01 par common Tons of Toys, Inc.: $.01 par common Robert Half International, Inc.: $1.00 par common Total Assets Protection: $.002 par common Santa Monica Bank: $3.00 par common United Education & Software: No par common Silocon Graphics, Inc.: $.001 par common Universal Voltronics Corporation: $.05 par common Strategic Planning Associates, Inc.: Class B, $.10 par common Virginia First Savings Bank, F.S.B.: $4.00 par Syracuse Supply Company: $4.00 par common common Telecommunications Network, Inc.: $.01 par common Zentec Corporation: No par common Telos Corporation: $.01 par common United Investors Management Co.: Non-voting, $1.00 Stocks Removed for Listing on a National par common Securities Exchange or Being Involved in an United Savings Bank (Oregon): $1.00 par common Acquisition Vipont Pharmaceutical, Inc.: $.001 par common American Vaccine Corporation: $.01 par common American Western Corporation: $. 10 par common Additions to the List of Marginable OTC Stocks Carme, Inc.: $.0001 par common Cheyenne Software Inc.: $.01 par common Aerovox Incorporated: $1.00 par common Citizens Bank (North Carolina): $2.50 par common A1 Copeland Enterprises, Inc.: Series 1, 17.5% ex- Clairson International Corporation: $.01 par common changeable preferred America's All Season Fund, Inc.: $.01 par common Dallas Semiconductor Corporation: $.02 par common American Bancorporation: No par common Damon Biotech, Inc.: $.01 par common American Insured Mortgage Investors: Depositary units of limited partnership interest Epitope, Inc.: No par common Equitable Bancorporation: $5.00 par common Bankers Corporation: $.01 par common Exchange Bancorp, Inc.: $1.00 par common BI Incorporated: No par common BLOC Development Corporation: $.001 par common First Financial Management Corp.: $.10 par common Boral Limited: American Depositary Receipts Florida National Banks of Florida, Inc.: $4.1666 par common Cal Graphite Corporation: No par common CII Financial, Inc.: No par common Gtech Corporation: $.01 par common Cisco Systems, Inc.: No par common Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 453 Civic Bancorp: No par common Security Savings Bank, FSB: $1.00 par common Community Financial Corporation: $.01 par common Sequoia Systems, Inc.: $.40 par common Super Rite Foods Holdings Corporation: $.01 par Delphi Financial Group, Inc.: Class A, $.01 par exchangeable preferred common Syntellect, Inc.: $.01 par common Devlieg - Bullard, Inc.: $.01 par common Digital Sound Corporation: No par common Tetra Technologies, Inc.: $.01 par common Tokos Medical Corporation: $.001 par common Elm Financial Services, Inc.: $.01 par common Tricare, Inc.: $.01 par common Elron Electronic Industries Ltd.: Rights (expire Tuboscope Corporation: $.01 par common 04-06-90) Unilab Corporation: $.01 par common Farmers Capital Bank Corporation: $.25 par common Forest Oil Corporation: $2,125 par convertible pre- Verifone, Inc.: $.01 par common ferred Vicor Corporation: $.01 par common Viking Office Products, Inc.: No par common Hadson Energy Resources Corporation: $.10 par common Wolverine Exploration Company: $1.00 par convert- Helian Health Group, Inc.: $1.00 par common War- ible exchangeable preferred rants (expire 11-22-92) Henley International, Inc.: $.001 par common Hologic, Inc.: $.01 par common ORDERS ISSUED UNDER BANK HOLDING Hornbeck Offshore Services, Inc.: $.10 par common COMPANY ACT Immunex Corporation: Warrants (expire 01-31-95) Orders Issued Under Section 3 of the Bank Integrated Resources American Insured Mortgage In- Holding Company Act vestors - 85: Depositary units of limited partnership interest Cheshire Financial Corporation Integrated Systems, Inc.: No par common Keene, New Hampshire Intera Information Technologies Corporation: Class A, No par common Order Approving the Acquisition of a State- Chartered Savings Bank Martech USA, Inc.: $.01 par common Mass Microsystems, Inc.: No par common Cheshire Financial Corporation, Keene, New Hamp- Metropolitan Federal Savings & Loan Association shire ("Cheshire"), a bank holding company within (Washington): $1.00 par common the meaning of the Bank Holding Company Act Micro Healthsystems, Inc.: $.01 par common ("BHC Act"), has applied for the Board's approval Momentum Distribution Inc.: $1.00 par common under section 3(a)(3) of the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire all of the voting shares of Neogen Corporation: $.16 par common Village Savings Bank, Greenville, New Hampshire ("Village"), a state-chartered, FDIC-insured guaranty Peoples First Corporation: No par common savings bank.1 Pharmacy Management Services, Inc.: $.01 par com- Notice of the application, affording an opportunity mon for interested persons to submit comments, has been Pickett Suite Hotel Master: Units of limited partner- duly published (55 Federal Register 3104 (1990)). The ship interest time for filing comments has expired, and the Board Pinkerton's Inc.: $.001 par common has considered the application and all comments re- Poe & Associates, Inc.: $.10 par common ceived in light of the factors set forth in section 3(c) of Presstek, Inc.: $.01 par common the BHC Act. Cheshire is a bank holding company that controls RCM Technologies, Inc.: $.05 par common both a savings bank and a commercial bank subsid- Roberts Pharmaceutical Corporation: $.01 par common 1. Village is a "bank" as defined in section 2(c) of the BHC Act, Scherer Healthcare, Inc.: $.01 par common 12 U.S.C. § 1841(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 Federal Reserve Bulletin • June 1990 iary. Cheshire is the ninth largest banking organization is a savings bank that controls approximately 57.0 in New Hampshire, with deposits of $423.8 million, percent of the total deposits in the market. In addition, representing 2.7 percent of the total bank and thrift Village has a small presence in the market and has lost deposits in the state.2 Village is the 57th largest market share in recent years. Moreover, the branch banking institution in the state, with deposits of $23.7 office of Village has not actively engaged in commermillion, representing less than one percent of the total cial lending activities in this market and has experibank and thrift deposits in the state. Upon consumma- enced a decline in deposits during the past several tion of the proposal, Cheshire would remain the ninth years, despite significant growth in deposits in the largest banking organization in New Hampshire, con- market generally. In light of these and other facts of trolling deposits of approximately $447.5 million, rep- record, the Board has concluded that consummation resenting 2.8 percent of the total deposits in commer- of this proposal would not have a significantly adverse cial banking and thrift organizations in New effect on competition in the Peterborough market. Hampshire. Consummation of this proposal would not The financial and managerial resources of Cheshire have a significantly adverse effect upon the concentra- and Village and their subsidiaries are consistent with tion of commercial banking resources in New Hamp- approval. Considerations relating to the convenience shire. and needs of the communities to be served are also Cheshire and Village compete directly in the Peter- consistent with approval of this application. borough, New Hampshire, banking market.3 One of Accordingly, based on the foregoing and other facts the bank subsidiaries of Cheshire operates three of the record, the Board has determined that the branches in that market, and is the second largest of application should be, and hereby is, approved. The the four depository institutions in the market, control- proposal shall not be consummated before the thirtieth ling $103.1 million in deposits, representing 28.4 per- calendar day following the effective date of this Order, cent of the total deposits in banking organizations in or later than three months after the effective date of that market. Village, which is headquartered in Green- this Order, unless such period is extended for good ville, operates one branch in the Peterborough banking cause by the Board or by the Federal Reserve Bank of market, and is the smallest competitor in the market, Boston, acting pursuant to delegated authority. controlling $8.6 million in deposits, representing 2.4 By order of the Board of Governors, effective percent of the total deposits in banking organizations April 23, 1990. in the market. Upon consummation of this proposal, Cheshire would remain the second largest banking Voting for this action: Chairman Greenspan and Governors organization in the market, controlling $111.7 million Johnson, Seger, Angell, Kelley, and La Ware. in deposits, representing 30.8 percent of total deposits in all banking organizations in the market. The Her- JENNIFER J. JOHNSON Associate Secretary of the Board findahl-Hirschman Index ("HHI") would increase by 135 points to 4312.4 Mid-South Bancorp, Inc. Although consummation of this proposal would re- Franklin, Kentucky sult in the loss of a competitor in a highly concentrated market, the Board believes that certain factors mitigate the competitive effects of this proposal. The Order Approving Acquisition of a Bank largest institution in the Peterborough banking market Mid-South Bancorp, Inc., Franklin, Kentucky, a bank holding company within the meaning of the Bank 2. State and market data are as of June 30, 1989. Holding Company Act ("BHC Act"), has applied for 3. The Peterborough, New Hampshire banking market is approxithe Board's approval under section 3(a)(3) of the Act mated by the towns of Antrim, Bennington, Francestown, Greenfield, Hancock, Peterborough, Sharon and Temple in Hillsboro County; and (12 U.S.C. § 1842(a)(3)) to acquire The Peoples Bank the towns of Dublin, Jaffrey and Rindge in Cheshire County. of Elk Valley, Fayetteville, Tennessee ("Bank"). 4. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the Notice of the application, affording an opportunity post-merger HHI is above 1800 is considered highly concentrated. In for interested persons to submit comments, has been such markets, the Department is likely to challenge a merger that duly published (55 Federal Register 11,652, 13,664 increases the HHI by more than 50 points. The Department has informed the Board that a bank merger or acquisition generally will (1990)). The time for filing comments has expired, and not be challenged (in the absence of other factors indicating anticom- the Board has considered the application and all petitive effects) unless the post-merger HHI is at least 1800 and the comments received in light of the factors set forth in merger increases the HHI by 200 points. The Justice Department has stated that the higher than normal HHI thresholds for screening bank section 3(c) of the BHC Act. mergers for anticompetitive effects implicitly recognize the competi- In connection with the application, the Secretary of tive effect of limited-purpose lenders and other non-depository financial entities. the Board has taken into consideration the competitive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 455 effects of the proposed transaction and the financial secured by or represent an interest in debt and managerial resources and future prospects of the obligations (including, without limitation, mortbanks concerned, and the convenience and needs of gage-related securities and consumer-receivablesthe communities to be served. On the basis of the related securities), rights issued in connection with information before the Board, the Secretary of the any of the foregoing to acquire interests in any Board finds that an emergency situation exists so as to other security, and options and warrants on all of require that the Secretary of the Board act expedi- the foregoing; and tiously pursuant to the provisions of section 3(b) of the (2) equity securities, including, without limitation, BHC Act (12 U.S.C. § 1842(b)) in order to safeguard common stock or other ownership interests in dodepositors of Bank. Having considered the record of mestic and foreign corporations or other entities, this application in light of the factors contained in the American Depository Receipts, all types of pre- BHC Act, the Secretary of the Board has determined ferred stock, and options and warrants on the above that consummation of the transaction would be in the securities.1 public interest and that the application should be approved. On the basis of these considerations, the Notice of the application, affording interested perapplication is approved. sons an opportunity to submit comments on the pro- The transaction shall not be consummated before posal, has been duly published (54 Federal Register the fifth calendar day following the effective date of 34,551). The Board received comments in opposition this Order, but in no event later than three months to approval of the application from the Securities after the effective date of this Order, unless such Industry Association ("SIA"), a trade association of period is extended for good cause by the Board or by the investment banking industry, and the Investment the Federal Reserve Bank of St. Louis acting pursuant Company Institute ("ICI"), a trade association of the to delegated authority. mutual fund industry. By order of the Secretary of the Board, acting Applicant has total consolidated assets equivalent to pursuant to delegated authority for the Board of Gov- approximately $68.7 billion.2 Applicant owns a bank ernors, effective April 24, 1990. subsidiary in Puerto Rico and operates branches in Boston and Portland, Oregon, and agencies in Atlanta, WILLIAM W. WILES New York City, and San Francisco. Applicant also Secretary of the Board operates The Bank of Nova Scotia Trust Company of New York, New York, New York, under section Orders Issued Under Section 4 of the Bank 4(c)(8) of the BHC Act. Applicant has previously Holding Company Act received Board approval under section 4(c)(8) of the BHC Act for Company to underwrite and deal in The Bank of Nova Scotia securities eligible to be underwritten and dealt in by Toronto, Ontario, Canada state member banks and to engage in various other activities permissible for bank holding companies.3 Order Approving Application to Engage, to a In January 1989, the Board determined that bank Limited Extent, in Underwriting and Dealing in Debt holding companies, through separately incorporated and Equity Securities and capitalized subsidiaries ("section 20 subsidiaries" or "underwriting subsidiaries"), may underwrite and The Bank of Nova Scotia, Toronto, Ontario, Canada deal in ineligible debt and equity securities within ("Applicant"), a bank holding company within the certain limits. J.P. Morgan & Co. Incorporated, meaning of the Bank Holding Company Act ("BHC et al., 75 Federal Reserve Bulletin 192 (1989) (the Act"), has applied for the Board's approval under "section 20 Order"). The Board had previously consection 4(c)(8) of the BHC Act, 12 U.S.C. cluded that underwriting subsidiaries would not be § 1843(c)(8), and section 225.23(a)(3) of the Board's "engaged principally" in underwriting or dealing in Regulation Y, 12 C.F.R. 225.23(a)(3), for its indirect securities within the meaning of section 20 of the subsidiary, ScotiaMcLeod (USA) Inc., New York, New York ("Company"), to underwrite and deal in, on a limited basis, the following securities: (1) debt securities, including, without limitation, 1. Applicant has not proposed to underwrite or deal in securities issued by open-end investment companies and, accordingly, may not debt obligations convertible into equity securities, do so without further application under section 4(c)(8) of the BHC commercial paper, municipal revenue bonds, own- Act. Applicant has proposed to underwrite and deal in securities issued by closed-end investment companies. ership interests in trusts or other vehicles (other 2. Asset and banking data are as of October 31, 1989. than open-end investment companies) which are 3. 74 Federal Reserve Bulletin 249 (1988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 Federal Reserve Bulletin • June 1990 Glass-Steagall Act4 provided they derived no more In the Canadian Imperial Order, the Board deterthan 5 to 10 percent of their total gross revenues from mined that: underwriting and dealing in ineligible securities over (1) the prudential framework of the section 20 Order any two-year period.5 In the section 20 Order, the would apply without modification to the U.S. bank Board further found that these activities are closely and thrift affiliates of the applicants' underwriting related to banking and a proper incident thereto, subsidiaries; provided that the activities are conducted within a (2) the framework would also generally cover U.S. framework of prudential limitations that avoid the branches and agencies of the applicants; potential for conflicts of interests, unsound banking (3) the applicants, insofar as their foreign offices practices, unfair competition, and other adverse ef- and operations are concerned, would be treated as fects. In reaching this decision, the Board found that bank holding companies for purposes of the framethe proposals could be expected to result in public work consistent with the International Banking Act; benefits such as increased competition, gains in effi- and ciency, greater convenience to users of these services, (4) the responsibility for compliance with the frameand a strengthened and more competitive banking and work would be placed on the section 20 subsidiaries financial system. in order to avoid U.S. regulation having an extrater- In January 1990, the Board approved applications ritorial impact on the foreign operations of the by Canadian Imperial Bank of Commerce and The applicants. Royal Bank of Canada to underwrite and deal in debt and equity securities and by Barclays Bank PLC to Applicant has committed that Company will conunderwrite and deal in debt securities through section duct the proposed activities in accordance with the 20 subsidiaries. Canadian Imperial Bank of Com- limitations set forth in the Canadian Imperial Order.7 merce, et al., 76 Federal Reserve Bulletin 158 (1990) Moreover, the Board has reviewed the capitalization ("Canadian Imperial"). In those applications, the of Applicant and Company and finds each to be applicant foreign banks had requested certain modifi- consistent with approval. With respect to the capitalcations to the framework of the section 20 Order to ization of Company, approval of the requested activiaccount for the fact that each applicant is a foreign ties is limited to a level consistent with the projections bank that operates predominately outside the United of position size and types of securities contained in the States. In approving the applications, the Board deter- application. The Board also notes that the size of mined that foreign banks must conduct the proposed Company's activities will be relatively small. activities in the United States within the framework of Consummation of the proposal would provide inprudential limitations established in the section 20 creased convenience to the customers of Company Order. Giving due regard to the principles of national and gains in efficiency. In addition, the Board expects treatment and the Board's policy not to extend U.S. that the de novo entry of Applicant into the market for bank supervisory standards extraterritorially, how- these services would increase the level of competition ever, the Board determined to adjust the funding and among providers of these services. For these reasons certain operational requirements of the section 20 and the reasons set forth in the section 20 and Cana- Order where those adjustments would not change the dian Imperial Orders, the Board finds that the perforbalance of public interest factors that the Board con- mance of the proposed activities can reasonably be sidered in the section 20 Order or cause adverse effects expected to produce benefits to the public. to outweigh public benefits.6 Accordingly, and for the reasons set forth in the section 20 and the Canadian Imperial Orders, the Board concludes that Applicant's proposal to engage 4. Section 20 of the Glass-Steagall Act (12 U.S.C. § 377) prohibits through Company in underwriting and dealing in debt the affiliation of a member bank with "any corporation . . . engaged and equity securities is consistent with section 20 of principally in the issue, flotation, underwriting, public sale, or distri- the Glass-Steagall Act and is so closely related to bution at wholesale or retail or through syndicate participation of stocks, bonds, debentures, notes, or other securities . . . ." 5. That decision has been affirmed by the United States Court of Appeals for the Second Circuit. Securities Industry Association v. Board of Governors, 839 F.2d 46, 67, cert, denied, 108 S.Ct. 2830 7. As required in the Canadian Imperial Order, Applicant may not (1988). See also Press Release, dated September 21, 1989, announcing commence the proposed activities until the Board has determined that the Board's decision to raise the revenue limitation for section 20 the Applicant has established policies and procedures to ensure subsidiaries from 5 to 10 percent. compliance with the requirements of the Order. The Board will review 6. The Board hereby adopts and incorporates herein by reference whether Applicant may commence underwriting and dealing in equity the reasoning and analysis from the Canadian Imperial Order, and securities based on a determination by the Board that Company has from the section 20 Order except as that reasoning and analysis was established the managerial and operational infrastructure and other specifically modified by the Canadian Imperial Order to account for policies and procedures necessary to comply with the requirements of the circumstances of those cases. the Order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 457 banking as to be a proper incident thereto within the Holding Company Act ("BHC Act") (12 U.S.C. meaning of section 4(c)(8) of the BHC Act, provided § 1843) pursuant to section 8(a) of the International Applicant limits Company's activities as provided in Banking Act of 1978 ("IBA") (12 U.S.C. § 3106(a)) by the Canadian Imperial Order.8 The application is virtue of its indirect control of an agency in the United hereby approved, subject to all of the terms and States, has applied for Board approval under section conditions established in the Canadian Imperial Or- 4(c)(8) of the BHC Act and section 225.23(a)(3) of the der. The Board's approval of this proposal extends Board's Regulation Y (12 C.F.R. 225.23(a)(3)) to aconly to activities conducted within the limitations of quire all of the outstanding shares of DnC America the Canadian Imperial Order, including the Board's Inc., New York, New York, as part of the merger of reservation of authority to establish additional limita- Bergen with Den norske Creditbank, Oslo, Norway tions to ensure that the subsidiary's activities are ("DnC"). DnC America Inc. is the holding company consistent with safety and soundness, conflict of inter- for DnC America Banking Corporation, New York, est, and other relevant considerations under the BHC New York ("DnCA"), a commercial lending company Act. Underwriting and dealing in any manner other organized under Article XII of the New York Banking than as approved in that Order is not within the scope Law ("Article XII company"). DnCA has two wholly of the Board's approval and is not authorized for owned subsidiaries, DnC Leasing International Inc., Company. New York, New York ("DnC Leasing"), and DnC This determination is subject to all of the conditions Capital Corporation, New York, New York ("DnC set forth in the Board's Regulation Y, including those Capital"). in sections 225.4(d) and 225.23(b), and to the Board's Bergen proposes to engage through these companies authority to require modification or termination of the in: activities of the holding company or any of its subsid- (1) borrowing and lending money, with or without iaries as the Board finds necessary to assure compli- real or personal security; acting as principal or agent ance with, and to prevent evasion of, the provisions in purchasing, discounting, acquiring, investing in, and purposes of the BHC Act and the Board's regula- selling and disposing of bills of exchange, drafts, tions and orders issued thereunder. notes, acceptances and other obligations for the This transaction shall not be consummated later payment of money ; and acting as principal or agent than three months after the effective date of this in purchasing, acquiring, investing in, servicing, Order, unless such period is extended for good cause selling and disposing of, and making loans upon the by the Board or by the Federal Reserve Bank of New security of, bonds and mortgages of real property; York, pursuant to delegated authority. (2) accepting bills of exchange or drafts drawn upon By order of the Board of Governors, effective DnCA; issuing letters of credit; and buying and April 2, 1990. selling coin, bullion and exchange; (3) with the approval, and subject to regulations, of Voting for this action: Chairman Greenspan and Governors the Banking Board of the State of New York, Johnson, Angell, Kelley, and La Ware. Absent and not vot- (a) maintaining a branch in the Cayman Islands, ing: Governor Seger. which (with limited deposit-taking powers) engages in the business of receiving deposits outside JENNIFER J. JOHNSON the United States and makes Eurodollar-based Associate Secretary of the Board loans, and (b) receiving money for transmission and trans- Bergen Bank A/S mitting the same to and from the United States; Bergen, Norway (4) receiving and maintaining credit balances incidental to, or arising out of, the exercise of its lawful Order Approving Acquisition of Shares of a powers; Nonbanking Company (5) engaging through DnC Leasing in leasing transactions and lending activities1 of a type permissible Bergen Bank A/S, Bergen, Norway ("Bergen"), a for bank holding company affiliates pursuant to foreign bank that is subject to section 4 of the Bank sections 225.25(b)(1) and (5) of Regulation Y (12 C.F.R. 225.25(b)(1) and (5)). 8. The SIA and ICI object to Applicant's proposal for the same reasons set forth in their comments on the Canadian Imperial, Royal Bank of Canada, and Barclays applications. The Board fully consid- 1. The lending activities consist of making, acquiring or servicing ered and rejected these arguments in the Canadian Imperial Order loans or other extensions of credit for DnC Leasing's account or for and, as noted above, adopts and incorporates herein by reference the the account of others, such as would be made, for example, by reasoning and analysis contained in that Order. commercial finance companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 Federal Reserve Bulletin • June 1990 (6) engaging through DnC Capital in providing: the Board considered the unique statutory powers of (i) advice in connection with merger, acquisi- Article XII companies and the fact that the lending and tion/divestiture and financing transactions for banking activities involved were generally offered by non-affiliated financial and nonfinancial institu- commercial banks. In each application to acquire an tions; Article XII company, the Board has reviewed each (ii) fairness opinions in connection with merger, activity conducted by that Article XII company to acquisition and similar transactions for non- determine whether that activity is permissible for bank affiliated financial and nonfinancial institutions; holding companies under section 4 of the BHC Act. In and, this case, the activities proposed by Bergen are sub- (iii) valuations for non-affiliated financial and stantially the same as those authorized by order in nonfinancial institutions. previous Board decisions.3 In addition, the Board has previously determined by regulation that leasing trans- Notice of the application, affording interested per- actions and lending activities are permissible nonbanksons an opportunity to submit comments, has been ing activities for bank holding companies under secgiven in accordance with section 4 of the BHC Act (55 tion 4(c)(8) of the BHC Act and Regulation Y Federal Register 9218 and 10,287 (1990)). The time for (12 C.F.R. 225.25(b)(1) and (5)). Bergen has proposed filing comments has expired, and the Board has con- to conduct these activities in conformance with the sidered the application and all comments received in Board's regulations and orders governing these activlight of the public interest factors set forth in section ities. In light of these and the other facts of record, the 4(c)(8) of the BHC Act. Board believes that the proposed activities of DnCA, DnC Leasing, and DNC Capital are closely related to Bergen, with total consolidated assets of $16.2 bilbanking for purposes of section 4 of the BHC Act. lion as of August 31, 1989, is the second largest bank in Norway, and operates 120 branch offices in Norway. In acting on applications under section 4 of the BHC In the United States, Bergen Bank maintains repre- Act, the Board is required to determine whether the sentative offices in Houston and Los Angeles and a performance of the proposed activities by an applicant branch in New York City. Bergen also owns an "can reasonably be expected to produce benefits to interest in Scandinavian Bank Group, a London-based the public, such as greater convenience, increased consortium bank, which in the United States operates competition, or gains in efficiency that outweigh posa New York State-licensed branch, a securities bro- sible adverse effects, such as undue concentration of kerage firm, an issuer of commercial paper, a consul- resources, decreased or unfair competition, conflict of tancy business and a financial advisory company. interests, or unsound banking practices." (12 U.S.C. Den norske Creditbank, with total consolidated as- § 1843(c)(8)). sets of $14.8 billion as of December 31, 1989, is the Bergen's proposed acquisition would add an addithird largest bank in Norway, and operates 138 branch tional source of strength to DnCA. There is no evioffices in Norway. After the merger, the corporate dence in the record that indicates that Bergen's proexistence of DnC will terminate and the resulting bank posal would result in any undue concentration of will be the largest in Norway. resources, decreased or unfair competition, conflicts DnC maintains a branch in New York, New York. of interest or unsound banking practices. Bergen proposes to merge the New York branch office In every case involving a nonbanking acquisition by of DnC into its existing New York branch office. DnC a bank holding company under section 4 of the BHC also operates in the United States through DnCA, Act, the Board considers the financial condition and which is an Article XII company with approximately resources of the applicant and its subsidiaries and the $745 million in assets as of September 30, 1989. In effect of the transaction on these resources. In this acting on Bergen's application to acquire DnCA, the case, the Board notes that the stated primary capital of Board must first determine that ownership of these Bergen, DnC and the combined organization meets the shares and the activities conducted by this company minimum capital guidelines for United States multinaare closely related to banking or managing or control- tional bank holding companies, as well as the capital ling banks. The Board has by order previously permitted bank holding companies to own and operate an Article XII company.2 In making that determination, (1983); European American Bancorp, 63 Federal Reserve Bulletin 595 (1977). 3. Id., See also, Canadian Imperial Bank of Commerce, 74 Federal Reserve Bulletin 571 (1988); SunTrust Banks, Inc., 74 Federal Reserve Bulletin 256 (1988); Signet Banking Corporation, 73 Federal Reserve 2. See Bergen Bank, 72 Federal Reserve Bulletin 200 (1986); The Bulletin 59 (1987) (orders relating to financial advisory services). Industrial Bank of Japan, 72 Federal Reserve Bulletin 71 (1986); Bergen has agreed that in conducting these activities DnC Capital will Skandinaviska Enskilda Banken, 69 Federal Reserve Bulletin 42 comply with the conditions relied upon by the Board in those orders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 459 requirements of their supervisory authorities in Nor- companies within the meaning of the Bank Holding way. In light of these facts, the fact that this applica- Company Act ("BHC Act"), have applied for the tion represents a proposal to retain an existing subsid- Board's approval under section 4(c)(8) of the BHC Act iary after the merger of two foreign banking (12 U.S.C. § 1843(c)(8)) and section 225.23 of the organizations, and the other facts of record, the finan- Board's Regulation Y (12 C.F.R. 225.23), for their cial and managerial factors in this case are consistent subsidiary, Norstar Brokerage Company, New York, with approval. New York ("NBC"), to acquire certain assets of For these reasons, the Board has determined that Heartland Securities, Inc., Chicago, Illinois ("Heartthe benefits to the public, subject to the conditions land"), and thereby engage in retail securities brokerdescribed above and commitments made by Bergen, age services solely as agent for the account of customwould outweigh any potentially adverse effects. Ac- ers. Fleet has previously received Board approval to cordingly, based on all of the facts of record, the engage in these activities through NBC.1 The Board Board has determined that the application under sec- has previously determined by regulation that providing tion 4 of the BHC Act should be, and hereby is, securities brokerage services solely as agent for the approved. The acquisition of shares shall be consum- account of customers is a permissible nonbanking mated no later than three months after the effective activity for bank holding companies under section 4(c)(8) of the BHC Act and the Board's Regulation Y date of this Order, unless such time is extended for (12 C.F.R. 225.25(b)(15)). good cause by the Board or by the Federal Reserve Bank of New York, pursuant to delegated authority. Fleet, with consolidated assets of $33.4 billion, is The Board's determination in this case is subject to all the sixteenth largest banking organization in the naof the conditions set forth in Regulation Y, including tion. It operates ten subsidiary banks and engages sections 225.4(d) and 225.23(b) (12 C.F.R. 225.4(d) directly and through subsidiaries in a variety of perand 225.23(b)), and to the Board's authority to require missible nonbanking activities.2 such modifications or termination of activities of a Notice of the application, affording interested perbank holding company or any of its subsidiaries as the sons an opportunity to submit comments on the pro- Board finds necessary to assure compliance with, and posal, has been published (55 Federal Register 7565 prevent evasions of, the provisions and purposes of (1990)). The time for filing comments has expired, and the BHC Act and the Board's regulations and orders the Board has considered the application and all issued thereunder. comments received in light of the public interest By order of of the Board of Governors, effective factors set forth in section 4(c)(8) of the BHC Act. The April 16, 1990. Board received written comments opposing Board approval of the application from the Investment Com- Voting for this action: Chairman Greenspan and Governors pany Institute ("ICI"), a trade association of the Johnson, Seger, Angell, and Kelley. Absent and not voting: mutual fund industry. Governor La Ware. The ICI has objected that, to the extent that NBC proposes to broker securities issued by investment JENNIFER J. JOHNSON companies sponsored or advised by Fleet or any of Associate Secretary of the Board its bank or nonbank affiliates, the proposed activities are inconsistent with the Glass-Steagall Act, the Bank Holding Company Act, and the Board's inter- Fleet/Norstar Financial Group, Inc. pretive rule governing investment advisory services Providence, Rhode Island by bank holding companies. NBC proposes to act as broker for shares of investment companies that are Fleet/Norstar New York, Inc. advised by a national bank affiliate of NBC or an Albany, New York operating subsidiary of a national bank affiliate of NBC ("Bank"). The Board's interpretive rule pre- Order Approving Application to Acquire Assets of vents a bank holding company from engaging directly Heartland Securities, Inc., Chicago, Illinois and or indirectly in the sale or distribution of securities of Thereby Engage in Retail Securities Brokerage any investment company for which it acts as invest- Services Solely as Agent for the Account of ment adviser. 12 C.F.R. 225.125(h). Customers Fleet/Norstar Financial Group, Inc., Providence, 1. See letter from A. Marshall Puckett, Vice President of the Federal Reserve Bank of New York, to John B. Robinson Jr., dated Rhode Island ("Fleet"), and Fleet/Norstar New York, October 10, 1984. Albany, New York ("Fleet New York"), bank holding 2. Data are as of December 31, 1989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 Federal Reserve Bulletin • June 1990 As the Board has previously noted, the Board's were intended to prevent would be present should interpretive rule does not apply in this situation NBC broker shares of investment companies that are because Bank, and not Fleet or one of its direct or advised directly by Bank. indirect nonbank subsidiaries, is advising the invest- The Board noted in Norwest that it issued its regument companies in question.3 Furthermore, the prac- lation and interpretive rule in 1972, and that subsetices at which the prohibition against sale or distri- quent developments, such as court decisions in bution of shares of investment companies being Schwab and in other cases, suggest the need for advised are directed are not present here. The main reexamination of some of the views expressed at that purpose of the prohibition was to assure that the time. As a result, the Board is considering seeking holding company does not become involved in un- public comment regarding a proposed revision of the derwriting and dealing in the shares of investment interpretive rule. companies it advises.4 In this case, as in Norwest, Consummation of the proposal would provide NBC proposes to act only as agent for customers added convenience to Heartland's customers. In desiring to purchase or sell investment company addition, given the relatively small size of the transsecurities, and therefore would not underwrite or action, and the fact that it does not involve a signifdeal in those securities.5 icant expenditure of capital, the Board has deter- NBC will not provide investment advice to broker- mined that the financial and managerial factors are age customers. Moreover, Fleet has committed that consistent with approval. The record does not indi- Company will disclose to its brokerage customers cate that consummation of the transaction is likely to who purchase shares of investment companies that result in undue concentration of resources, deare advised by Bank that these investment compa- creased or unfair competition, conflicts of interests, nies are sponsored by third parties independent of unsound banking practices, or other adverse effects. Bank and its affiliates. The disclosure statement will Accordingly, the Board has determined that the also state that such shares or interests are not performance of the proposed activities by Fleet can endorsed or guaranteed by, and do not constitute reasonably be expected to produce public benefits obligations of, Bank or its affiliates. Finally, this that would outweigh adverse effects under the proper statement will state that the investment company incident to banking standard of section 4(c)(8) of the BHC Act. shares are not insured by the Federal Deposit Insurance Corporation. Accordingly, the Board does not Based on the above, and subject to all of the believe that the potential conflicts of interest that the commitments made by Fleet regarding the conduct of Glass-Steagall Act and the Board's interpretive rule these activities, including those commitments noted in this order, the Board hereby does approve the application. The Board's determination is subject to all of the 3. See Norwest Corporation, 76 Federal Reserve Bulletin 79 (1990) conditions set forth in the Board's Regulation Y, ("Norwest"). As the Board explained in Norwest, by its terms, the Board's interpretive rule does not apply where an investment com- including those in sections 225.4(d) and 225.23(b), pany is advised by a subsidiary bank, rather than by a parent bank and to the Board's authority to require modification holding company or a nonbank subsidiary. The interpretive rule was or termination of the activities of a bank holding issued in connection with the Board's adoption of a regulation pursuant to its authority under section 4(c)(8) of the BHC Act to company or any of its subsidiaries as the Board finds approve nonbanking activities for bank holding companies and their necessary to assure compliance with, and to prevent nonbanking subsidiaries. Section 4(c)(8) does not empower the Board evasion of, the provisions of the BHC Act and the to authorize activities for banks. The Supreme Court has recognized that the authority of national banks and state banks to engage in Board's regulations and Orders issued thereunder. investment advisory activities does not derive from the Board's This transaction shall not be consummated later than regulation, and that the Board's interpretive rule applies only to the three months after the effective date of this Order, investment advisory activities of bank holding companies and their nonbank subsidiaries. Board of Governors of Federal Reserve System unless such period is extended for good cause by the v. Investment Company Institute, 450 U.S. 46, 59 n.25 (1981). Indeed, Board or by the Federal Reserve Bank of Boston, the Office of the Comptroller of the Currency has issued an interpretive letter authorizing national banks and their subsidiaries to broker pursuant to delegated authority. and recommend securities of investment companies for which such By order of the Board of Governors, effective national banks or their subsidiaries serve as investment adviser. See April 23, 1990. OCC Interpretive Letter No. 403 (December 9, 1987), reprinted in Fed. Banking L. Rep. (CCH) para. 85,627, at 77,962. 4. 450 U.S. at 62, 66. Voting for this action: Chairman Greenspan and Governors 5. It is settled that buying and selling securities as a broker on the order and for the account of customers does not constitute underwrit- Johnson, Seger, Angell, Kelley, and LaWare. ing or dealing in securities for purposes of section 20 of the Glass- Steagall Act (12 U.S.C. § 377), which regulates the activities of JENNIFER J. JOHNSON affiliates of member banks. Securities Industry Association v. Board of Governors, 468 U.S. 207, 216-21 (1984) ("Schwab"). Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 461 Liberty National Bancorp, Inc. ment Company Institute ("ICI"), a trade association Louisville, Kentucky of the mutual fund industry. The Board has previously determined that the con- Order Approving Application to Underwrite and duct of the proposed bank-ineligible securities under- Deal in Certain Securities to a Limited Extent and to writing and dealing activities through a bank holding Act as a Riskless Principal company subsidiary is consistent with section 20 of the Glass-Steagall Act, provided the subsidiary derives no Liberty National Bancorp, Inc., Louisville, Kentucky more than 10 percent of its total gross revenue from ("Liberty"), a bank holding company within the underwriting and dealing in the approved bank-inelimeaning of the Bank Holding Company Act ("BHC gible securities over any two-year period.3 The Board Act"), has applied for the Board's approval under also has found by order that, subject to the prudential section 4(c)(8) of the BHC Act (12 U.S.C. framework of limitations established to address the § 1843(c)(8)) and section 225.23 of the Board's Regu- potential for conflicts of interest, unsound banking lation Y (12 C.F.R. 225.23), for its subsidiary, Bank- practices, or other adverse effects, the proposed uner's Investment Group, Louisville, Kentucky derwriting and dealing activities are so closely related ("Company"),1 to underwrite and deal in, to a limited to banking as to be a proper incident thereto within the extent, in the following securities (collectively "bank- meaning of section 4(c)(8) of the BHC Act.4 Liberty ineligible securities"): has committed that Company will conduct its under- (1) municipal revenue bonds, including certain in- writing and dealing activities with respect to bankdustrial development bonds; ineligible securities subject to the 10 percent revenue (2) 1-4 family mortgage-related securities; test and the prudential limitations established by the Board in its Citicorp/'Morgan!Bankers Trust, Chemi- (3) commercial paper; and cal, and Modification Orders. (4) consumer-receivable-related securities. The Board has determined previously that the pur- Liberty also has applied for the Board's approval to chase and sale of securities on the order of investors as purchase and sell securities on the order of customers a riskless principal does not constitute underwriting as a "riskless principal." and dealing in securities for purposes of section 20 of Liberty, with total consolidated assets of $3.5 bil- the Glass-Steagall Act, and that revenue derived from lion, is the third largest banking organization in that activity is not subject to the 10 percent revenue Kentucky.2 Liberty operates ten subsidiary banks and limitation on ineligible securities underwriting and engages directly and through subsidiaries in a variety dealing.5 The Board also has previously determined of permissible nonbanking activities. Company is and that riskless principal activities are closely related to will continue to be a broker-dealer registered with the banking.6 In order to address the potential for conflicts Securities and Exchange Commission and subject to of interest, unsound banking practices, or other adthe record-keeping, reporting, fiduciary standards, and verse effects presented by Company's conduct of other requirements of the Securities Exchange Act of riskless principal activities, Liberty has proposed to 1934 and of the National Association of Securities conduct its riskless principal activities in accordance Dealers. with the Bankers Trust Order.7 Notice of the application, affording interested persons an opportunity to submit comments on the pro- 3. Citicorp, J.P. Morgan & Co. Incorporated, and Bankers Trust posal, has been published (55 Federal Register 4681 New York Corporation, 73 Federal Reserve Bulletin 473 (1987) ("Cit- (1990)). The time for filing comments has expired, and icorp/Morgan/Bankers Trust"), ajfd sub nom., Securities Industry the Board has considered the application and all Association v. Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir. 1988), cert, denied, 486 U.S. 1059 (1988) C'SIA v. comments received in light of the factors set forth in Board"); and Chemical New York Corporation, The Chase Manhatsection 4 of the BHC Act. The Board has received tan Corporation, Bankers Trust New York Corporation, Citicorp, comments regarding the application from the Invest- Manufacturers Hanover Corporation, and Security Pacific Corporation, 73 Federal Reserve Bulletin 731 (1987) ("Chemical"); as modified by Order Approving Modifications to Section 20 Orders 75 Federal Reserve Bulletin 751 (1989) ("Modification Order"). 4. Citicorp, J.P. Morgan & Co. Incorporated, and Bankers Trust 1. Liberty previously has received approval to provide discount New York Corporation, supra note 3. securities brokerage services, pursuant to section 225.25(b)(15) of the 5. Bankers Trust New York Corporation, 75 Federal Reserve Board's Regulation Y (12 C.F.R. 225.25(b)(15)), and to underwrite Bulletin 829 (1989) ("Bankers Trust"). and deal in obligations that state member banks of the Federal Reserve 6. Id. System may be authorized to underwrite and deal in under 12 U.S.C. 7. The ICI has objected to the proposal to the extent that it could be §§ 24 and 335, pursuant to section 225.25(b)(16) of Regulation Y construed to seek approval for Company to act as a riskless principal (12 C.F.R. 225.25(b)(16)). Company currently underwrites and deals with respect to securities of investment companies that are sponsored in bank-eligible securities and provides discount brokerage services. or advised by Company or Liberty. Liberty has not requested 2. Banking data are as of December 31, 1988. approval to act as a riskless principal with respect to such securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 Federal Reserve Bulletin • June 1990 Specifically, Liberty has committed that Company the Board has determined to, and hereby does, apwould not act as a riskless principal in selling securi- prove this application.10 The Board's determination is ties on the order of a customer that is the issuer of the subject to all of the conditions set forth in the Board's securities to be sold or in any transaction where Regulation Y, including those in sections 225.4(d) and Company has a contractual agreement to place secu- 225.23(b), and to the Board's authority to require rities as agent of the issuer. Company also would not modification or termination of the activities of a bank act as riskless principal in any transaction involving a holding company or any of its subsidiaries as the security for which it makes a market. Although Com- Board finds necessary to assure compliance with, and pany may maintain an inventory of particular issues of to prevent evasion of, the provisions of the BHC Act securities in connection with ineligible securities ac- and the Board's regulations and orders issued theretivities, Company would not engage in any riskless under. This transaction shall not be consummated principal transaction for any security carried in its later than three months after the effective date of this inventory. Furthermore, Company would not hold Order, unless such period is extended for good cause itself out as making a market in the securities that it by the Board or by the Federal Reserve Bank of purchases and sells as a riskless principal nor enter St. Louis, pursuant to delegated authority. quotes for specific securities in the NASDAQ or any By order of of the Board of Governors, effective other dealer quotation system in connection with April 30, 1990. riskless principal transactions. Finally, in order to distinguish riskless principal transactions from true Voting for this action: Vice Chairman Johnson, and Govprincipal transactions, the Board requires Company, ernors Seger, Angell, and Kelley. Absent and not voting: as a condition of approval of this activity, to maintain Chairman Greenspan and Governor La Ware. specific records that would identify clearly all riskless principal transactions.8 JENNIFER J. JOHNSON Associate Secretary of the Board Consummation of the proposal would provide added convenience to Liberty's customers. In addition, the Security Pacific Corporation Board expects that the de novo entry of Liberty into Los Angeles, California the market for the proposed services would increase the level of competition among providers of these Order Approving Application to Engage in Certain services. Under the framework established in this and Leasing Activities prior decisions, consummation of this proposal is not likely to result in any significant undue concentration Security Pacific Corporation, Los Angeles, California of resources, decreased or unfair competition, con- ("Security Pacific"), a bank holding company within flicts of interest, unsound banking practices, or other the meaning of the Bank Holding Company Act adverse effects. Accordingly, the Board has deter- ("BHC Act"), has applied pursuant to section 4(c)(8) mined that the performance of the proposed activities of the BHC Act (12 U.S.C. § 1843(c)(8)) to engage, by Liberty can reasonably be expected to produce through its subsidiary Security Pacific Leasing Corpopublic benefits that would outweigh adverse effects ration, San Francisco, California ("Company"), in under the proper incident to banking standard of certain leasing activities involving the leasing of persection 4(c)(8) of the BHC Act.9 sonal property, and acting as agent, broker, or adviser Based on the foregoing, including all of the commitin leasing such property, including leasing transactions ments made by Liberty, and subject to all of the terms that allow Company to rely for its compensation on an and conditions set forth in this Order and in the estimated residual value of the leased property at the above-noted Board Orders that relate to this activity, expiration of the initial lease term of up to 100 percent of the acquisition cost of the property.1 Regulation Y currently limits reliance on residual value to no more 8. Liberty does not currently maintain any foreign affiliates. In the than 20 percent of the acquisition cost of the property. event Liberty does establish any foreign affiliates, Company's riskless 12 C.F.R. 225.25(b)(5)(iv)(C). principal activities would not be conducted on behalf of any of its foreign affiliates engaged in securities dealing activities. 9. Company may also provide services that are necessary incidents 10. In light of the decision in SIA v. Board, Liberty will not be to these approved activities. Any activity conducted as a necessary subject to the market share limitation with respect to its ineligible incident to the ineligible securities underwriting and dealing activity activities that was originally imposed in the CiticorplMorgan/Bankers must be treated as part of the ineligible securities activity unless Trust and Chemical Orders. Company has received specific approval under section 4(c)(8) of the BHC Act to conduct the activity independently. Until such approval is obtained, any revenues from the incidental activity must be counted as ineligible revenue subject to the 10 percent gross revenue limit set 1. Company currently engages in leasing activities for which it has forth in the Modification Order. received prior Board approval under Regulation Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 463 Notice of the application, affording interested per- demonstrate a reasonable or close connection or sons an opportunity to submit comments on the relationship of the activity to banking."6 relation of the proposed activities to banking and on the balance of public interest factors, has been duly 1. Closely related to banking. The Board has previpublished (54 Federal Register 46,127 (1989)). The ously determined that leasing personal property is an time for filing comments has expired, and the Board activity that is closely related to banking where the has considered the application and all comments leases serve as the functional equivalent of an extenreceived in light of the public interest factors set sion of credit, are on a nonoperating basis, do not rely forth in section 4(c)(8) of the BHC Act.2 on an estimated residual value in excess of 20 percent Security Pacific, a bank holding company which of the acquisition cost of the property, and meet controls twelve subsidiary banks in Alaska, Arizona, certain other requirements. 12 C.F.R. 225.25(b)(5). California, Colorado, Nevada, Oregon, Texas, and The question raised by Security Pacific's proposal is Washington, has total consolidated assets of $83.9 whether leasing activities conducted within the same billion, and is the fifth largest banking organization in parameters, except with reliance on a residual value the nation.3 Security Pacific is also engaged in a that exceeds 20 percent of the cost of the property, are variety of nonbanking activities. closely related to banking. In order to approve an application under section In this regard, section 108 of the Competitive Equal- 4(c)(8) of the BHC Act, the Board must determine ity Banking Act of 1987 ("CEBA") amended the that the proposed activity is "so closely related to National Bank Act to permit national banks to lease banking or managing or controlling banks as to be a tangible personal property so long as the leases are on proper incident thereto " 12 U.S.C. § 1843(c)(8). a nonoperating basis and represent, in the aggregate, In determining whether an activity is closely related no more than 10 percent of the bank's assets.7 The to banking for purposes of section 4(c)(8) of the BHC legislative history of this amendment explains that Act, the Board has relied on guidelines established Congress intended this amendment to permit the Ofby the federal courts.4 Under these guidelines, an fice of the Comptroller of the Currency ("OCC") to activity may be found to be closely related to banking relax or eliminate the residual value limitation on if it is demonstrated: leasing activities of national banks in a manner consis- (1) that banks generally have in fact provided the tent with sound banking practices. S. Rep. No. 19, proposed service; or 100th Cong., 1st Sess. 43 (1987). (2) that banks generally provide services that are In reliance on this legislation, a number of national operationally or functionally so similar to the pro- banks currently conduct leasing transactions with reposed services as to equip them particularly well to liance on residual values as high as 100 percent of the provide the proposed service; or original cost of the leased property. The OCC recently (3) that banks generally provide services that are so proposed to amend its regulations to implement the integrally related to the proposed service as to leasing authorization provision in CEBA.8 A number require their provision in a specialized form. of states, including Security Pacific's home state of California, have also permitted state-chartered banks The Board may also consider other factors which to conduct leasing activities without limit on the provide a reasonable basis for a finding that a partic- amount of residual value that may be relied on by the ular nonbanking activity is closely related to lessor bank.9 banking.5 The Board has stated that it will consider "any . . . factor that an applicant may advance to 6. 49 Federal Register 806 (1984). 7. 12 U.S.C. § 24(10). 8. 54 Federal Register 53,071. The comment period on this proposed regulation closed on February 26, 1990, and the OCC is currently reviewing the public comments. Under this proposal, national banks would not be subject to any maximum estimated residual 2. The Board received letters on the proposal from nine comment- value requirement on leases initiated by the national banks. As ers, all of whom urged the Board to approve the application. proposed by the OCC, the amount of leasing activities of a national 3. Asset data are as of December 31, 1989. bank in which residual value of property is expected to be over 25 4. See National Courier Association v. Board of Governors, 516 percent of the acquisition cost of the property would be limited to 10 F.2d 1229 (D.C. Cir. 1975). See also Association of Data Processing percent of the national bank's total consolidated assets. The OCC Service Organizations, Inc. v. Board of Governors, 745 F.2d 677 proposal would also contain certain other requirements including the (D.C. Cir. 1984). The Supreme Court endorsed the National Courier requirement that the leases be made on a nonoperating basis and have criteria in Securities Industry Ass'n. v. Board of Governors, 468 U.S. a duration of at least 90 days. 207, 210 n.5 (1984). 9. See letter, dated December 19, 1986, from Louis Carter, Super- 5. Securities Industry Ass'n, supra; Board of Governors v. Invest- intendent of Banks, California State Banking Department, to Neil B. ment Company Institute, 450 U.S. 46, 56-58 nn. 20-23 (1981); Martin, Secretary, Security Pacific State Bank; and letter, dated Association of Data Processing Organizations, supra. November 18, 1986, from Neil B. Martin, Secretary, Security Pacific Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 Federal Reserve Bulletin • June 1990 In addition, bank holding companies have since 1971 specific leasing transaction under consideration, and been permitted by the Board to engage in leasing will either sell or re-lease that property within 2 years personal property in transactions that represent the of the expiration of the initial lease. The leases arfunctional equivalent of an extension of credit. Secur- ranged by Security Pacific will all be non-operating, ity Pacific has engaged in leasing activities through and will have a lease term of at least one year. In Security Pacific National Bank since 1964, and has addition, Security Pacific has committed to limit the engaged in leasing activities through Company since total amount of its investment in leases with estimated 1973.The leases Security Pacific proposes to arrange residual values in excess of 25 percent of the acquisiwill meet all of the criteria established under Regula- tion cost of the leased property to no more than 10 tion Y for the leasing activities of bank holding com- percent of Security Pacific's total consolidated assets. panies except for the residual value criterion. The Security Pacific has also committed to limit the total experience gained by Security Pacific and other bank amount of its investment in leases with estimated holding companies in conducting these leasing activi- residual values in excess of 70 percent of the acquisities pursuant to Regulation Y has permitted these tion cost of the leased property to the lesser of 0.5 companies to gain expertise in valuing leased property percent of Security Pacific's total consolidated assets, and disposing of that property at the expiration of the or 10 percent of Security Pacific's total consolidated lease and should equip these bank holding companies shareholders' equity. Security Pacific has also comparticularly well to conduct leasing activities that rely mitted to maintain the capital of Company commenon a higher residual value. For these reasons, and surate with industry standards. The Federal Reserve based on the facts of record in this case, in the Board's Bank of San Francisco will monitor the policies and opinion, the leasing activities proposed by Security procedures of Security Pacific and Company to assure Pacific are closely related to banking for purposes of that these policies and procedures are consistent with section 4(c)(8) of the BHC Act. the leasing authority granted under this Order. Based upon consideration of the foregoing and all of 2. Proper incident to banking. In order to approve this the relevant facts of record, the Board concludes that application, the Board must also consider whether the the balance of the public interest factors that it is performance of the proposed activity "can reasonably required to consider under section 4(c)(8) is favorable be expected to produce benefits to the public, such as in this case. The Board expects, in the near future, to greater convenience, increased competition, or gains seek public comment with respect to a proposal to in efficiency, that outweigh possible adverse effects, amend Regulation Y to permit bank holding companies such as undue concentration of resources, decreased generally to engage in leasing transactions with a or unfair competition, conflicts of interests, or un- relaxed residual value requirement. Security Pacific sound banking practices." has committed to conform its leasing activities to any Applicant contends that permitting Company to final rulemaking that may result from such a proposal. conduct the proposed activity will allow Company to Security Pacific has also applied under section compete more effectively with banks, thrifts and non- 4(c)(13) of the BHC Act to conduct these activities bank lessors that currently engage in these activities. through subsidiaries outside the United States. Leas- In addition, Applicant states that approval of this ing, as Security Pacific proposes to conduct the activproposal may be expected to benefit the public by ity, is generally considered a financial activity and is allowing Company to offer its customers a broader conducted by banks and other financial services comrange of leasing products. The financial and manage- panies outside the United States. Consequently, the rial resources of Security Pacific and Company are Board finds that the conduct of this activity can be also considered consistent with approval. considered usual in connection with the business of The Board has considered the potential for adverse banking or other financial operations abroad. Moreeffects that might be associated with reliance by Com- over, subject to the terms and conditions established pany on high residual values in leasing transactions. In in this Order, the activity would not pose substantial this regard, the Board notes that Security Pacific and risk to the Security Pacific organization, and is consis- Company have committed that they will initially ac- tent with the supervisory purposes of the BHC Act. quire property to be leased only in connection with a Accordingly, based on all the facts of record, and subject to the conditions in this Order and the commitments made by Applicants in this case, the Board State Bank, to Louis Carter, Superintendent of Banks, California has determined that the proposed applications should State Banking Department. In addition, states such as Florida, Mary- be, and hereby are, approved. This determination is land, Michigan, Arkansas, and Indiana allow banks to lease personal subject to all of the conditions set forth in Regulation property without a limit as to the amount of residual value on which the bank may rely. Y, including sections 225.4(d) and 225.23(b)(3) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 465 (12 C.F.R. 225.4(d) and 225.23(b)(3)), and to the Wells Fargo also has applied for the Board's ap- Board's authority to require such modification or proval under section 4(c)(8) of the BHC Act to acquire termination of the activities of a bank holding com- indirectly, through a wholly owned operating subsidpany or any of its subsidiaries as the Board finds iary of Wells Fargo Bank, N.A., San Francisco, Calnecessary to assure compliance with, or to prevent ifornia ("Wells Fargo National Bank"), a 50 percent evasion of, the provisions and purposes of the BHC interest in Wells Fargo-Nikko Investment Advisors, Act and the Board's regulations and orders thereun- San Francisco, California ("Investment Advisors"), a der. general partnership that would provide investment The transaction shall be made not later than three advice, and a 66.7 percent interest in Wells Fargo months after the effective date of this Order, unless Foreign Funds Advisors, San Francisco, California such period is extended for good cause by the Board or ("Foreign Funds Advisors"), a general partnership by the Federal Reserve Bank of San Francisco, pur- that will provide investment advice exclusively to suant to delegated authority. foreign mutual funds marketed outside the United By order of of the Board of Governors, effective States. Investment Advisors and Foreign Funds Advi- April 30, 1990. sors would engage only in investment advisory activities that are permissible under section 225.25(b)(4) of Voting for this action: Vice Chairman Johnson and Gover- the Board's Regulation Y (12 C.F.R. 225.25(b)(4)).2 nors Seger, Angell, and Kelley. Absent and not voting: Investment Advisors also would hold 99.9 percent of Chairman Greenspan and Governor La Ware. the voting shares of Trust Company. The Nikko Securities Company, Limited, Tokyo, JENNIFER J. JOHNSON Japan, and its non-operating subsidiary, The Nikko Associate Secretary of the Board Building Company, Limited, Wilmington, Delaware (collectively, "Nikko"), would acquire the remaining Wells Fargo & Company 50 percent of Investment Advisors and 33.3 percent of San Francisco, California Foreign Funds Advisors. Notice of the application, affording interested per- Order Approving Application to Offer Investment sons an opportunity to submit comments, has been Advisory Services and Engage in Trust Company duly published (55 Federal Register 1264 (1990)). The Activities time for filing comments has expired, and the Board has considered the application and all comments re- Wells Fargo & Company, San Francisco, California ceived in light of the factors set forth in section 4(c)(8) ("Wells Fargo"), a bank holding company within the of the BHC Act. meaning of the Bank Holding Company Act ("BHC Wells Fargo is the third largest banking organization Act"), has applied, pursuant to section 4(c)(8) of the in California, and the eighth largest in the United BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 States.3 It engages in a broad range of permissible of the Board's Regulation Y (12 C.F.R. 225.23), to nonbanking activities in the United States. acquire directly and indirectly 50.05 percent of the The Board has previously determined by regulation voting shares of Wells Fargo Institutional Trust Comthat the investment advisory and trust company activpany, N.A., San Francisco, California ("Trust Comities that Trust Company, Investment Advisors, and pany"). Wells Fargo would directly acquire 0.1 per- Foreign Funds Advisors propose to conduct in this cent of Trust Company. Trust Company is a national bank chartered by the Office of the Comptroller of the case are permissible activities for bank holding Currency, and will engage solely in trust activities that companies.4 Wells Fargo proposes to conduct these are permissible for bank holding companies to conduct activities pursuant to the requirements of the Board's under section 225.25(b)(3) of the Board's Regulation Y regulations. In each case under section 4(c)(8) of the (12 C.F.R. 225.25(b)(3)).1 Trust Company will not BHC Act, the Board must also determine whether the accept deposits and will not be an insured bank. performance of the proposed activities by the applicant "can reasonably be expected to produce benefits to the public . . . that outweigh the possible adverse effects." 12 U.S.C. § 1843(c)(8). In prior decisions, 1. Trust Company is exempt from the definition of "bank" for purposes of the BHC Act because it will provide solely trust services, will not accept demand deposits, and will not make commercial loans. 12 U.S.C. § 1841(c)(2)(D). Thus, Investment Advisors, the immediate 2. Wells Fargo National Bank would acquire its interest in Investparent of Trust Company, will not be a bank holding company as ment Advisors and Foreign Funds Advisors through its wholly owned defined by section 2(c) of the BHC Act (12 U.S.C. § 1841(c)), and operating subsidiary, Wells Fargo Investment Advisors, San Franneither Wells Fargo nor Investment Advisors is required to submit an cisco, California. application pursuant to section 3 of the BHC Act prior to consummat- 3. All data are as of December 31, 1989. ing this proposal. 4. 12 C.F.R. 225.25(b)(3) and (b)(4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 Federal Reserve Bulletin • June 1990 the Board has indicated a concern that joint ventures subject to the restrictions of sections 23A and 23B of not lead to a matrix of relationships between co- the Federal Reserve Act. In addition, Trust Company venturers that could break down the legally mandated will become an affiliate of Wells Fargo and its subsidseparation of banking and commerce. iaries, including Wells Fargo National Bank,8 for pur- The investment advisory activities and the trust poses of the provisions. Section 23A of the Federal company services that the joint venturers propose to Reserve Act is designed to protect insured depository conduct in this case are, as noted, permissible activi- institutions from abuses that may result from a member ties for both bank holding companies and for banks. bank lending to an affiliate, purchasing assets from an Wells Fargo and Nikko have made commitments that affiliate, or making investments in the securities issued are similar to commitments that the Board has found in by an affiliate. In this regard, the Board has considered other cases to be adequate in addressing the Board's whether, in light of the facts of this case, it is appropriconcerns with respect to the potential mingling of ate to deem Investment Advisors and Foreign Funds banking and securities activities.5 For example, there Advisors to be affiliates of Wells Fargo National Bank are restrictions on arrangements between Wells Fargo for purposes of sections 23A and 23B, pursuant to and Nikko concerning the recommendation or pur- section 23A(b). chase by Wells Fargo or Trust Company of securities As a general matter, section 23A does not apply to underwritten by Nikko as well as restrictions on transactions between a member bank and its nonbank director, officer, and employee interlocks between subsidiaries, unless the Board determines that the Nikko and Trust Company. Wells Fargo has commit- relationship between the member bank and its subsidted that all transactions between domestic Wells Fargo iary may affect transactions by the member bank with affiliates and Nikko companies will be consummated the subsidiary to the detriment of the member bank. A on an arm's length basis. In addition, section 23A and general exemption was provided for subsidiaries of section 23B of the Federal Reserve Act (12 U.S.C. banks because these subsidiaries usually operate as §§ 371c and 371c-l) apply to transactions between arms or divisions of the parent bank. Trust Company and Nikko.6 These commitments and In this case, Investment Advisors and Foreign statutory restrictions should serve to ensure that Wells Funds Advisors are subsidiaries of Wells Fargo Na- Fargo and its affiliates do not engage in activities that tional Bank, and would, as a general matter, be are impermissible for a bank holding company and that exempt from the prudential limitations contained in the affiliation of Trust Company with Nikko will not section 23A. In light of the fact that a nonbanking result in significant conflicts of interest, unsound bank- company will own a significant interest in these coming practices, or other adverse effects. panies, the potential exists that transactions between The Board also has concluded that this proposal is Wells Fargo National Bank and these entities could be not prohibited by the provisions of the Glass-Steagall affected by the relationship between these entities to Act. For purposes of the Glass-Steagall Act, Nikko and the detriment of the bank. Accordingly, the Board Company would not be affiliates. Under the proposal, hereby determines that Investment Advisors and For- Nikko would control, in the aggregate, less than 50 eign Funds Advisors shall be considered affiliates of percent of the capital stock of Trust Company, and Wells Fargo National Bank for purposes of the provi- Nikko would not control the election of a majority of sions of section 23A and section 23B. the board of directors of Trust Company.7 In addition, In order to consummate the proposal, Wells Fargo there will be no director, officer, or employee interlock National Bank, Trust Company, and the advisory between any Nikko affiliate that may be engaged in partnerships will engage in several covered transacunderwriting or dealing in securities in the United tions, as defined in section 23A. First, the transfer of States, and Investment Advisors, Foreign Funds Advi- the trust and advisory assets by Wells Fargo National sors, or Trust Company. Bank to the advisory partnerships and Trust Company Following consummation of the proposal, Nikko and in exchange for the voting equity of the partnerships its subsidiaries will become affiliates of Trust Company, and Trust Company are covered transactions under section 23A. In addition, Trust Company will acquire certain computer hardware and software and other assets from Wells Fargo National Bank in exchange 5. See The Fuji Bank, 75 Federal Reserve Bulletin 94 (1989). 6. For example, section 23B prohibits Trust Company from knowingly purchasing as fiduciary securities underwritten by Nikko during the existence of an underwriting or selling syndicate if Nikko is a principal underwriter of that security. 8. Trust companies are expressly included within the definition of 7. Three of the six directors of Trust Company would be selected by "bank" for purposes of section 23A. Because Wells Fargo will own Wells Fargo. Nikko would have the power to select two of the less than 80 percent of the voting shares of Trust Company under its directors. The remaining director would be jointly selected by Wells proposal, Trust Company does not qualify for the exemption provided Fargo and Nikko. in section 23A for transactions between so-called sister banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 467 for Trust Company's assumption of an approximately In approving this application, the Board has relied on equal amount of debt owed by Wells Fargo National all the commitments made by Wells Fargo and Ni- Bank to Wells Fargo.9 kko. This determination is also subject to all the Wells Fargo has requested that the Board grant conditions set forth in the Board's Regulation Y, Wells Fargo National Bank and Trust Company a including those in sections 225.4(d) and 225.23(b), one-time exemption from the provisions of section and to the Board's authority to require such modifi- 23A to permit the transfer of the trust and advisory cation or termination of the activities of a bank assets from Wells Fargo National Bank to Trust holding company or any of its subsidiaries as the Company. Wells Fargo also requests that the Board Board finds necessary to assure compliance with, or grant an exemption to permit its investment in the to prevent evasion of, the provisions and purposes of securities issued by Investment Advisors and For- the BHC Act and the Board's regulations and orders eign Funds Advisors. Section 23A(e)(2) provides that issued thereunder. the Board may grant an exemption from section 23A The proposed activities shall be commenced not if the Board finds that the proposed exemption is in later than three months after the effective date of this the public interest and consistent with the purposes Order, unless such period is extended for good cause of the section. by the Board or by the Federal Reserve Bank of San The Board has granted limited exemptions in similar Francisco, acting pursuant to delegated authority. situations where the transaction represented a one- By order of of the Board of Governors, effective time reorganization of a bank's interests, did not April 2, 1990. involve the transfer of low-quality assets, and involved assets the quality of which had been verified in the Voting for this action: Chairman Greenspan and Governors examination process.10 These criteria are met in this Johnson, Angell, Kelley, and LaWare. Absent and not voting: Governor Seger. case. Accordingly, the Board hereby grants a limited one-time exemption from the quantitative require- JENNIFER J. JOHNSON ments of section 23A in order to permit the proposed Associate Secretary of the Board transfer of assets and investment in the advisory partnerships in this case. Hereafter, all covered transactions must be in compliance with section 23A. The Board's determination is based upon the rep- Orders Issued Under Financial Institutions resentations made to the Board by Wells Fargo and Reform, Recovery, and Enforcement Act other facts of record. Any change in the facts or circumstances relied upon in making this determina- April 27, 1990 tion could result in the reconsideration of the determination made herein. The Board also expressly Christina M. Tomczak reserves the right to rescind this exemption if the Executive Director/Regulatory Regulations Board determines that its continuation is no longer in Barnett Banks, Inc. the public interest or consistent with the purposes of 100 Laura Street section 23A. Jacksonville, Florida 32202 There is no evidence in the record that the proposal is likely to result in decreased or unfair com- Dear Ms. Tomczak: petition, conflicts of interests, unsound banking practices, concentration of resources, or other adverse Barnett Banks, Inc., Jacksonville, Florida ("Bareffects that outweigh public benefits of this proposal. nett"), proposes that its bank subsidiary, Barnett Accordingly, based on all facts of record, the Board Bank of the Keys, Key West, Florida, purchase the believes that the balance of public interest factors assets and assume the liabilities of Barnett Federal that the Board is required to consider under section Savings Bank, Jacksonville, Florida, its savings as- 4(c)(8) of the BHC Act is favorable in this case. sociation subsidiary, ("Barnett Federal"). Barnett For these reasons, the Board has determined that has requested Board approval of this transaction the application should be, and hereby is, approved. pursuant to section 5(d)(3) of the Federal Deposit Insurance Act ("FDI Act") as amended by the Financial Institutions Reform, Recovery, and En- 9. The Board believes that a transaction involving the transfer of forcement Act of 1989 (Pub. L. No. 101-73, § 206, assets to a member bank and the assumption of liabilities by the bank is a purchase of assets by the member bank for purposes of section 103 Stat. 183, 199 (1989)). Barnett Federal has been 23A. established to acquire certain assets and assume 10. See letter, dated March 19, 1984, to Barclays Bank of New deposit liabilities of First Federal Savings and Loan York, N.A. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 Federal Reserve Bulletin • June 1990 Association of the Florida Keys, Key West, Florida Dear Mr. Chamberlin: ("First Federal"). The record in this case shows that: Gateway Financial Corporation, Norwalk, Connect- (1) The aggregate amount of the total assets of all icut ("Gateway"), proposes that its bank subsidiary, depository institution subsidiaries of Barnett is Gateway Bank, Norwalk, Connecticut, purchase the $29.0 billion, an amount which is not less than 200 assets and assume the liabilities of Columbia Acquipercent of the total assets of Barnett Federal, which sition Federal Savings Bank, Norwalk Connecticut, currently has $161.0 million in total assets; its savings association subsidiary, ("Columbia Ac- (2) Barnett and all of its bank subsidiaries cur- quisition"). Gateway has requested Board approval rently meet all applicable capital standards and, of this transaction pursuant to section 5(d)(3) of the upon consummation of the proposed transactions, Federal Deposit Insurance Act ("FDI Act") as will continue to meet all applicable capital stan- amended by the Financial Institutions Reform, Redards; covery, and Enforcement Act of 1989 (Pub. L. No. (3) The transaction is not in substance the acquisi- 101-73, § 206, 103 Stat. 183, 199 (1989)). Columbia tion of a Bank Insurance Fund member bank by a Acquisition has been established to acquire certain Savings Association Insurance Fund member; assets and assume deposit liabilities of Columbia (4) First Federal, the predecessor to Barnett Fed- Federal Savings Bank, Westport, Connecticut ("Coeral, had tangible capital of less than 4 percent lumbia Savings"). during the quarter preceding its acquisition by Bar- The record in this case shows that: nett; (1) The aggregate amount of the total assets of all (5) The transaction, which involves the purchase of depository institution subsidiaries of Gateway is assets and assumption of liabilities of Barnett Fed- $1.3 billion, an amount which is not less than 200 eral, a savings association located in Florida, by a percent of the total assets of Columbia Acquisibank subsidiary of Barnett, a bank holding company tion, which currently has $123.4 million in total whose banking subsidiaries' operations are princi- assets; pally conducted in Florida, would comply with the (2) Gateway and all of its bank subsidiaries currequirements of section 3(d) of the Bank Holding rently meet all applicable capital standards and, Company Act if Barnett Federal were a state bank upon consummation of the proposed transactions, which Barnett was applying to acquire. will continue to meet all applicable capital standards; Based on the foregoing and all of the other facts of (3) The transaction is not in substance the acquirecord, the Staff Director of the Division of Banking sition of a Bank Insurance Fund member bank by Supervision and Regulation and the General Counsel a Savings Association Insurance Fund member; of the Board, acting pursuant to authority delegated by (4) Columbia Savings, the predecessor to Columbia the Board of Governors, hereby approve your request Acquisition, had tangible capital of less than 4 to engage in the proposed transaction under section percent during the quarter preceding its acquisition 5(d)(3) of the FDI Act. This approval is subject to by Gateway; Barnett obtaining the required approval of the appro- (5) The transaction, which involves the purchase priate Federal banking agency for the proposed merger of assets and assumption of liabilities of Columbia under the Bank Merger Act. Acquisition, a savings association located in Connecticut, by a bank subsidiary of Gateway, a bank Very truly yours, holding company whose banking subsidiaries' operations are principally conducted in Connecticut, would comply with the requirements of section Jennifer J. Johnson 3(d) of the Bank Holding Company Act if Colum- Associate Secretary of the Board bia Acquisition were a state bank which Gateway was applying to acquire. cc: Federal Reserve Bank of Atlanta Based on the foregoing and all of the other facts of record, the Staff Director of the Division of Banking April 12, 1990 Supervision and Regulation and the General Counsel R. Mark Chamberlin, Esquire of the Board, acting pursuant to authority delegated by Schatz & Schatz, Ribicoff & Kotkin the Board of Governors, hereby approve your request 90 State House Square to engage in the proposed transaction under section Hartford, Connecticut 06103 5(d)(3) of the FDI Act. This approval is subject to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 469 Gateway obtaining the required approval of the appro- NCNB, a savings association located in Texas, by a priate Federal banking agency for the proposed merger bank subsidiary of NCNB, a bank holding company under the Bank Merger Act. whose banking subsidiaries' operations are principally conducted in North Carolina, would comply Very truly yours, with the requirements of section 3(d) of the Bank Holding Company Act if Interim Five NCNB were a state bank which NCNB was applying to acquire. William W. Wiles Secretary of the Board Based on the foregoing and all of the other facts of record, the Staff Director of the Division of Banking cc: Federal Reserve Bank of New York Supervision and Regulation and the General Counsel of the Board, acting pursuant to authority delegated by April 27, 1990 the Board of Governors, hereby approve your request Paul J. Polking to engage in the proposed transaction under section Executive Vice President and General Counsel 5(d)(3) of the FDI Act. This approval is subject to NCNB Corporation NCNB obtaining the required approval of the appro- One NCNB Plaza priate Federal banking agency for the proposed merger Charlotte, North Carolina 28255 under the Bank Merger Act. Dear Mr. Polking: Very truly yours, NCNB Corporation, Charlotte, North Carolina Jennifer J. Johnson ("NCNB"), proposes that its bank subsidiary, NCNB Associate Secretary of the Board Texas National Bank, Dallas, Texas, purchase the assets and assume the liabilities of Interim Five NCNB cc: Federal Reserve Bank of Richmond Texas, F.S.B., Dallas, Texas, its savings association subsidiary, ("Interim Five NCNB"). NCNB has requested Board approval of this transaction pursuant to April 20, 1990 section 5(d)(3) of the Federal Deposit Insurance Act ("FDI Act") as amended by the Financial Institutions Steven C. Worrell Reform, Recovery, and Enforcement Act of 1989 Vice President and C.F.O. (Pub. L. No. 101-73, § 206, 103 Stat. 183, 199 (1989)). Union Bancshares, Inc. Interim Five NCNB has been established to acquire P.O. Box 637 certain assets and assume deposit liabilities of Heri- Wichita, Kansas 67201 tagebanc Savings Association, Duncanville, Texas ("Heritage"). Dear Mr. Worrell: The record in this case shows that: (1) The aggregate amount of the total assets of all Union Bancshares, Inc., Wichita, Kansas ("Union"), depository institution subsidiaries of NCNB is $66.0 proposes that its bank subsidiary, Union National billion, an amount which is not less than 200 percent Bank of Wichita, Wichita, Kansas, purchase the assets of the total assets of Interim Five NCNB, which and assume the liabilities of Hutchinson Federal Savcurrently has $116.7 million in total assets; ings & Loan Association, Hutchinson, Kansas, its (2) NCNB and all of its bank subsidiaries currently savings association subsidiary, ("Hutchinson"). meet all applicable capital standards and, upon Union has requested Board approval of this transacconsummation of the proposed transactions, will tion pursuant to section 5(d)(3) of the Federal Deposit continue to meet all applicable capital standards; Insurance Act ("FDI Act") as amended by the Finan- (3) The transaction is not in substance the acquisi- cial Institutions Reform, Recovery, and Enforcement tion of a Bank Insurance Fund member bank by a Act of 1989 (Pub. L. No. 101-73, § 206, 103 Stat. 183, Savings Association Insurance Fund member; 199 (1989)). Hutchinson has been established to ac- (4) Heritage, the predecessor to Interim Five quire certain assets and assume deposit liabilities of NCNB, had tangible capital of less than 4 percent First Federal Savings & Loan Association of Hutchinduring the quarter preceding its acquisition by son, Hutchinson, Kansas ("First Federal"). NCNB; The record in this case shows that: (5) The transaction, which involves the purchase of (1) The aggregate amount of the total assets of all assets and assumption of liabilities of Interim Five depository institution subsidiaries of Union is $521 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 Federal Reserve Bulletin • June 1990 million, an amount which is not less than 200 per- Act if Hutchinson were a state bank which Union cent of the total assets of Hutchinson, which cur- was applying to acquire. rently has $123 million in total assets; (2) Union and all of its bank subsidiaries currently Based on the foregoing and all of the other facts of meet all applicable capital standards and, upon record, the Staff Director of the Division of Banking consummation of the proposed transactions, will Supervision and Regulation and the General Counsel continue to meet all applicable capital standards; of the Board, acting pursuant to authority delegated by (3) The transaction is not in substance the acquisi- the Board of Governors, hereby approve your request tion of a Bank Insurance Fund member bank by a to engage in the proposed transaction under section Savings Association Insurance Fund member; 5(d)(3) of the FDI Act. This approval is subject to (4) First Federal, the predecessor to Hutchinson, Union obtaining the required approval of the approhad tangible capital of less than 4 percent during the priate Federal banking agency for the proposed merger quarter preceding its acquisition by Union; under the Bank Merger Act. (5) The transaction, which involves the purchase of assets and assumption of liabilities of Hutchinson, a Very truly yours, savings association located in Kansas, by a bank subsidiary of Union, a bank holding company whose William W. Wiles banking subsidiaries' operations are principally con- Secretary of the Board ducted in Kansas, would comply with the requirements of section 3(d) of the Bank Holding Company cc: Federal Reserve Bank of Kansas City APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Effective Applicant(s) Bank(s) date First Commonwealth Financial Peoples Bank and Trust Company, April 26, 1990 Corporation, Jennerstown, Pennsylvania Indiana, Pennsylvania Section 4 Effective Applicant(s) Bank(s) date First Security Corporation, Utah Deseret Mortgage Corporation, April 17, 1990 Salt Lake City, Utah Orem, Utah Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 471 By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant(s) Bank(s) Bank date AMBANC Corp., Citizen's National Corporation, St. Louis April 24, 1990 Vincennes, Indiana Linton, Indiana AmeriFirst Bancorporation, Inc. AmeriFirst Bank, St. Louis April 12, 1990 Sikeston, Missouri Cape Girardeau, Missouri Arkansas Bankers' Arkansas Bankers' Bank, St. Louis April 20, 1990 Bancorporation, Inc., Little Rock, Arkansas Little Rock, Arkansas Bank of Montana System, Big Sky Bankshares, Inc., Minneapolis March 30, 1990 Great Falls, Montana Great Falls, Montana Bank of Montana Acquisition Corporation, Great Falls, Montana Blackhawk Bancorp, Inc., Beloit Savings Bank, Chicago March 27, 1990 Beloit, Wisconsin Beloit, Wisconsin BMR Financial Group, Inc., Meigs County Bancshares, Inc., Atlanta April 20, 1990 Atlanta, Georgia Decatur, Tennessee Britton Bancshares, Inc., First National Bank of Holcomb, Kansas City April 20, 1990 Ellsworth, Kansas Holcomb, Kansas Cameron Bancorp, Inc., Community Bank of Cameron, Minneapolis April 10, 1990 Cameron, Wisconsin Cameron, Wisconsin Carlson Bancshares, Inc., Fidelity Bancorp, Inc., St. Louis April 12, 1990 West Memphis, Arkansas West Memphis, Arkansas Casey County Bancorp, Inc., Middleburg Bancorp, Inc., St. Louis April 18, 1990 Liberty, Kentucky Middleburg, Kentucky Century National Corporation, Security National Bank, Atlanta March 28, 1990 Clearwater, Florida Clearwater, Florida Columbus Corp., Stanley Bank, Kansas City April 26, 1990 Stanley, Kansas Stanley, Kansas Commercial National Financial Commercial National Bank of Cleveland April 13, 1990 Corporation, Westmoreland County, Latrobe, Pennsylvania Latrobe, Pennsylvania Community Investment Lebanon State Bank, Chicago March 29, 1990 Bancorporation, Inc., Lebanon, Wisconsin Lebanon, Wisconsin Corn Belt Bancorp, Inc., Corn Belt Bank and Trust St. Louis April 12, 1990 Pittsfield, Illinois Company, Pittsfield, Illinois Del Rio National Bancshares, D.R.N.B., Inc., Dallas March 29, 1990 Inc., Washington, D.C. Del Rio, Texas Del Rio National Bank, Del Rio, Texas D.R.N.B., Inc., Del Rio National Bank, Dallas March 29, 1990 Washington, D.C. Del Rio, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 Federal Reserve Bulletin • June 1990 Section 3—Continued Reserve Effective Applicant(s) Bank(s) Bank date EastPark Bancshares, Inc., EastPark National Bank, Dallas April 25, 1990 Dallas, Texas Dallas, Texas Empire Capital Corporation, LeRoy State Bank, Chicago March 30, 1990 LeRoy, Illinois LeRoy, Illinois ENB Holding Company, Temecula Valley National Bank, San Francisco April 17, 1990 Escondido, California Temecula, California First Affiliated Bancorp, Inc., BANCORP OF NORTH- Chicago April 4, 1990 Watseka, Illinois WESTERN INDIANA, Goodland, Indiana First American Bancshares, Inc., First American Bank, N.A., Kansas City April 6, 1990 Kansas City, Kansas Lenexa, Kansas Kansas Bancorporation, Inc., Kansas City, Kansas Wyandotte Ban Corporation, Kansas City, Kansas First Colonial Bankshares Fox Lake State Bank, Chicago April 23, 1990 Corporation, Fox Lake, Illinois Chicago, Illinois First New Mexico Financial First State Bank of Silver City, Dallas April 13, 1990 Corporation, Silver City, New Mexico Deming, New Mexico FirstPerryton Bancorp, Inc., Citizens Bank & Trust Company, Dallas April 6, 1990 Perry ton, Texas Pampa, Texas First Place Financial The Burns National Bank of Kansas City March 30, 1990 Corporation, Durango, Farmington, New Mexico Durango, Colorado F & M Bancorporation, Inc., BancUnion Corp., Chicago March 29, 1990 Kaukauna, Wisconsin Lancaster, Wisconsin Fourth Financial Corporation, Citadel Bankshares, Inc., Kansas City March 29, 1990 Wichita, Kansas Wichita, Kansas Globalshare, Limited, El Paso Financial Corporation, Dallas April 23, 1990 Road Town, Tortola, Wilmington, Delaware British Virgin Islands El Paso State Bank, El Paso, Texas Hope Bancshares, Inc., The First National Bank of Hope, Kansas City April 11, 1990 Hope, Kansas Hope, Kansas Jessup Family Limited Bank of Eastman, Atlanta April 13, 1990 Partnership, Eastman, Georgia Eastman, Georgia Kaw Valley Bancshares, Inc., Galleria Bank, Kansas City April 13, 1990 Kansas City, Kansas Overland Park, Kansas Keweenaw Financial The Superior National Bank and Minneapolis April 12, 1990 Corporation, Trust Company, Hancock, Michigan Hancock, Michigan L.S.B. Bancshares, Inc. of South Lowcountry Bancshares, Inc., Richmond April 6, 1990 Carolina, Varnville, South Carolina Lexington, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 473 Section 3—Continued Reserve Effective AApppplliiccaanntt((ss)) BBaannkk((ss)) Bank date Mercantile Bancorp, Inc., State Bank of Augusta, St. Louis April 17, 1990 Quincy, Illinois Augusta, Illinois Mid-Wisconsin Financial North Holding Company, Inc., Minneapolis April 12, 1990 Services, Inc., Neillsville, Wisconsin Neillsville, Wisconsin Missouri Quad Bancshares, Inc., Quad County Bancshares, Inc., St. Louis April 27, 1990 Kansas City, Missouri Viburnum, Missouri Morley Bancshares Corporation, The Valley State Bank, Kansas City April 20, 1990 Belle Plaine, Kansas Belle Plaine, Kansas Multibank Financial Corp., Andover Bancorp, Inc., Boston April 6, 1990 Dedham, Massachusetts Andover, Massachusetts The Waltham Corporation, Waltham, Massachusetts NBRC Company, The National Bank of Rockwell Chicago April 11, 1990 Rockwell City, Iowa City, Rockwell City, Iowa Peoples Financial Services, Inc., Peoples Bank and Trust of the Atlanta April 20, 1990 Cookeville, Tennessee Cumberlands, Cookeville, Tennessee Pleasant Hope Bancshares, Inc., Webster County Bank, St. Louis April 13, 1990 Pleasant Hope, Missouri Marshfield, Missouri Prairie Bancorp, Inc., Tiskilwa State Bank, Chicago April 11, 1990 Manlius, Illinois Tiskilwa, Illinois Putnam County Bancshares, Inc., Putnam County State Bank, Kansas City April 4, 1990 Unionville, Missouri Unionville, Missouri Shelby Financial Corporation, The Shelby State Bank, Chicago April 11, 1990 Shelby, Michigan Shelby, Michigan Southwest Holdings, Inc., Southwest Ban Corporation, Kansas City March 23, 1990 Omaha, Nebraska Omaha, Nebraska Taylor Bancshares, Inc., Farmers National Bank of Minneapolis April 5, 1990 North Mankato, Minnesota Minnesota Lake, Minnesota Lake, Minnesota Union Colony Bancorp, Valley National Bank, Kansas City April 25, 1990 Greeley, Colorado Loveland, Colorado WCC Management Corp., Wainwright Bank & Trust Boston March 26, 1990 Boston, Massachusetts Company, Wainwright Capital Management Boston, Massachusetts Company, L.P., Boston, Massachusetts Church Green Bancorp, Inc., Boston, Massachusetts B & T Holding Company L.P., Boston, Massachusetts Yellowstone Trail Ipswich State Bank, Minneapolis March 30, 1990 Bancorporation, Ipswich, South Dakota Ipswich, South Dakota Yutan Bancorp, Inc., Bank of Yutan, Kansas City April 11, 1990 Yutan, Nebraska Yutan, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 Federal Reserve Bulletin • June 1990 Section 4 Nonbanking Reserve Effective Applicant(s) Activity /Company Bank date Area Bancshares Corporation, First Federal Savings and Loan St. Louis April 9, 1990 Owensboro, Kentucky Association of Bowling Green, Bowling Green, Kentucky Financial Trust Corporation, First Federal Savings Bank, Philadelphia March 23, 1990 Carlisle, Pennsylvania Hanover, Pennsylvania First of America Bank PrimeBank, Federal Savings Chicago April 5, 1990 Corporation, Bank, Kalamazoo, Michigan Grand Rapids, Michigan KD Bancshares, Inc., Jerry Smith & Associates, Inc., Chicago March 30, 1990 Edgerton, Wisconsin Madison, Wisconsin Sections 3 and 4 Nonbanking Reserve Effective Applicant s) Activity/Company Bank date Premier Financial Corp., Cromwell Financial Corp., Chicago March 23, 1990 Elkhart, Indiana Cromwell, Indiana Crittson Financial Corporation, Elkhart, Indiana Salin Bancshares of North Logan sport Bancorp, Inc., Chicago April 4, 1990 Central Indiana, Inc., Indianapolis, Indiana Indianapolis, Indiana Union Planters Corporation, North Arkansas Bancshares, St. Louis April 6, 1990 Memphis, Tennessee Inc., Jonesboro, Arkansas Mercantile Corporation, Jonesboro, Arkansas 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(s) Bank(s) Bank date Crestar Bank, Perpetual Savings Bank, F.S.B., Richmond April 26, 1990 Richmond, Virginia McLean, Virginia DeLand State Bank, National Bank of Monticello, Chicago April 6, 1990 DeLand, Illinois Monticello, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 475 PENDING CASES INVOLVING THE BOARD OF bank for purposes of the Bank Holding Company GOVERNORS Act. Consumers Union of U.S., Inc. v. Board of Gover- This list of pending cases does not include suits nors, No. 89-3008 (D.D.C., filed November 1, against the Federal Reserve Banks in which the Board 1989). Challenge to various aspects of amendments of Governors is not named a party. to Regulation Z implementing the Home Equity Loan Consumer Protection Act. Oral argument on California Association of Life Underwriters v. Board the parties' cross-motions for summary judgment of Governors, No. 90-70123 (9th Circuit, filed was held on April 27, 1990. March 15, 1990). Petition for review of Board order Synovus Financial Corp. v. Board of Governors, No. approving acquisition of bank subsidiary to engage 89-1394 (D.C. Cir., filed June 21, 1989). Petition for in insurance activities pursuant to state law. review of Board order permitting relocation of a Burke v. Board of Governors, No. 90-9505 (10th bank holding company's national bank subsidiary Circuit, filed February 27, 1990). Petition for review from Alabama to Georgia. of Board orders assessing civil money penalties and MCorp v. Board of Governors, No. 89-2816 (5th Cir., issuing orders of prohibition. filed May 2, 1989). Appeal of preliminary injunction BancTEXAS Group, Inc. v. Board of Governors, No. against the Board enjoining pending and future CA 3-90-0236-R (N.D. Texas, filed February 2, enforcement actions against bank holding company 1990). Plaintiff seeks temporary restraining order now in bankruptcy. Awaiting decision. and preliminary injunction enjoining the Board from Independent Insurance Agents of America v. Board of enforcing a temporary order to cease and desist Governors, No. 89-4030 (2d Cir., filed March 9, requiring injection of capital into plaintiff s subsid- 1989). Petition for review of Board order ruling that iary banks under the Board's source of strength the non-banking restrictions of section 4 of the Bank doctrine. The district court denied plaintiff's request Holding Company Act apply only to non-bank subfor a temporary restraining order on February 6, sidiaries of bank holding companies. The Board's 1990. order was upheld on November 29, 1989. Petition Rutledge v. Board of Governors, No. CV90-L-0137S for certiorari filed on April 18, 1990. (N.D. Alabama, filed January 27, 1990). Tort suit Securities Industry Association v. Board of Governors, challenging Board and Reserve Bank supervisory No. 89-1127 (D.C. Cir., filed February 16, 1989). Petiactions. tion for review of Board order permitting five bank Woodward v. Board of Governors, No. 90-3031 (11th holding companies to engage to a limited extent in Cir., filed January 16, 1990); Kaimowitz v. Board of additional securities underwriting and dealing activities. Governors, No. 90-3067 (11th Cir., filed January 23, Board's order upheld on April 10, 1990. 1990). Petitions for review of Board order dated MCorp v. Board of Governors, No. CA3-88-2693 December 22, 1989, approving application by First (N.D. Tex., filed October 10, 1988). Application for Union Corporation to acquire Florida National injunction to set aside temporary cease and desist Banks. Petitioners object to approval on Commu- orders. Stayed pending outcome of MCorp v. Board nity Reinvestment Act grounds. The court denied of Governors in Fifth Circuit. their motion for a stay of the Board's order on White v. Board of Governors, No. CU-S-88-623-RDF January 26, 1990, and is considering jurisdictional (D. Nev., filed July 29, 1988). Age discrimination issues raised by the Board. complaint. Board's motion to dismiss or for sum- Securities Industry Association v. Board of Gover- mary judgment pending. nors, No. 89-1730 (D.C. Cir., filed November 29, Cohen v. Board of Governors, No. 88-1061 (D.N.J., 1989). Petition for review of Board order approving filed March 7, 1988). Action seeking disclosure of application under section 4(c)(8) to engage in private documents under the Freedom of Information Act. placement and riskless principal activities. The case Lewis v. Board of Governors, Nos. 87-3455, 87-3545 has been held in abeyance pending the outcome of (11th Cir., filed June 25, August 3, 1987). Petitions for Securities Industry Association v. Board of Gover- review of Board orders approving applications of nonnors, No. 89-1127 (D.C. Circuit). Florida bank holding companies to expand activities of Babcock and Brown Holdings, Inc. v. Board of Gov- Florida trust company subsidiaries. Matter stayed ernors, No. 89-70518 (9th Cir., filed November 22, pending Supreme Court review of Continental Illinois 1989). Petition for review of Board determination Corp. v. Lewis, 827 F.2d 1517 (11th Cir. 1987), vacated that a company would control a proposed insured and remanded, 110 S. Ct. 1249 (1990). 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 MONEY STOCK AND BANK CREDIT WEEKLY REPORTING COMMERCIAL BANKS A3 Reserves, money stock, liquid assets, and debt Assets and liabilities measures A19 All reporting banks A4 Reserves of depository institutions, Reserve A20 Banks in New York City Bank credit A21 Branches and agencies of foreign banks A5 Reserves and borrowings—Depository institutions A22 Gross demand deposits—individuals, A6 Selected borrowings in immediately available partnerships, and corporations funds—Large member banks FINANCIAL MARKETS POLICY INSTRUMENTS A23 Commercial paper and bankers dollar acceptances outstanding A7 Federal Reserve Bank interest rates A23 Prime rate charged by banks on short-term A8 Reserve requirements of depository institutions business loans A9 Federal Reserve open market transactions A24 Interest rates—money and capital markets A25 Stock market—Selected statistics A26 Selected financial institutions—Selected assets and liabilities FEDERAL RESERVE BANKS A10 Condition and Federal Reserve note statements FEDERAL FINANCE All Maturity distribution of loan and security holdings A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlays A30 Federal debt subject to statutory limitation A30 Gross public debt of U.S. Treasury—Types MONETARY AND CREDIT AGGREGATES and ownership A12 Aggregate reserves of depository institutions A31 U.S. government securities 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

2 Federal Reserve Bulletin • June 1990 SECURITIES MARKETS AND A56 U.S. reserve assets CORPORATE FINANCE A56 Foreign official assets held at Federal Reserve Banks A34 New security issues—State and local A57 Foreign branches of U.S. banks—Balance governments and corporations sheet data A35 Open-end investment companies—Net sales A59 Selected U.S. liabilities to foreign official and asset position institutions A35 Corporate profits and their distribution A35 Total nonfarm business expenditures on new plant and equipment REPORTED BY BANKS IN THE UNITED STATES A36 Domestic finance companies—Assets and liabilities and business credit A59 Liabilities to and claims on foreigners A60 Liabilities to foreigners A62 Banks' own claims on foreigners REAL ESTATE A63 Banks' own and domestic customers' claims on A37 Mortgage markets foreigners A38 Mortgage debt outstanding A63 Banks' own claims on unaffiliated foreigners A64 Claims on foreign countries—Combined domestic offices and foreign branches CONSUMER INSTALLMENT CREDIT A39 Total outstanding and net change A40 Terms REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES FLOW OF FUNDS A65 Liabilities to unaffiliated foreigners A66 Claims on unaffiliated foreigners A41 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit markets SECURITIES HOLDINGS AND TRANSACTIONS A44 Summary of credit market debt outstanding A45 Summary of credit market claims, by holder A67 Foreign transactions in securities A68 Marketable U.S. Treasury bonds and notes—Foreign transactions Domestic Nonfinancial Statistics SELECTED MEASURES INTEREST AND EXCHANGE RATES A46 Nonfinancial business activity—Selected measures A69 Discount rates of foreign central banks A47 Labor force, employment, and unemployment A69 Foreign short-term interest rates A48 Output, capacity, and capacity utilization A70 Foreign exchange rates A49 Industrial production—Indexes and gross value A51 Housing and construction A52 Consumer and producer prices A71 Guide to Tabular Presentation, A53 Gross national product and income Statistical Releases, and Special A54 Personal income and saving Tables International Statistics SPECIAL TABLES All Assets and liabilities of commercial banks, SUMMARY STATISTICS December 31, 1989 A55 U.S. international transactions—Summary A78 Assets and liabilities of U.S. branches and A56 U.S. foreign trade agencies of foreign banks, December 31, 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 1989 1990 1989 1990 MMoonneettaarryy aanndd ccrreeddiitt aaggggrreeggaatteess Q2 Q3 Q4 Ql Nov. Dec. Jan. Feb. Mar. Reserves of depository institutions2 1 Total -8.5' .6 5.1 2.4 .1 7.8 -2.7 6.4 1.6 2 Required -7.7 .5 5.0 2.5 1.7 8.4 -4.7 7.1 4.3 3 Nonborrowed -10.0' 8.6' 7.2 -3.9 4.3 9.5 -6.2 -13.9 -12.2 4 Monetary base3 1.8' 3.2 4.0 8.5 1.9 7.3 10.8' 9.2' 8.7 Concepts of money, liquid assets, and debt4 3 Ml -4.4 1.8 5.1 4.8 2.0 8.2 -.1 9.8 5.0 6 M2 1.6 6.9 7.0 6.2 i.r 7.3 3.4 9.3' 5.1 7 M3 3.3 3.9 1.8 3.0 3.7 3.6' 1.5' 5.1' .8 8 L 5.0 4.2 2.7 n.a. 3.8 4.4' .1' 2.8 n.a. 9 Debt 7.7 7.2 7.9 6.5 8.8 4.8 5.4 7.6 n.a. Nontrqnsaction components 10 In M2' 3.7 8.7 7.6 6.7 9.0 7.0 4.5 9.1' 5.2 11 In M3 only6 9.1 -6.8 -17.1r -9.6 -9.6r -10.7' -5.7' -11.2' -16.5 Time and savings deposits Commercial banks 12 Savings -11.5 .4 7.1 9.6 9.5 7.3 8.7 12.5 10.1 13 MMDA -10.8 5.2 12.3 9.0 16.6 10.6 2.9 11.9 10.5 14 Small-denomination time7 25.9 11.9 11.3 7.9 10.9 9.6 6.6 7.6' 5.6 15 Large-denomination time8,9 16.3 3.0 2.7 -1.4 8.0 -.1 -.7 -5.5' -7.6 Thrift institutions 1 1 7 6 Sa M vin M g D s A - - 3 1 0 4 . . 6 9 - - 6 5 . . 2 2 4. . 7 3 ' 5 1 . . 6 2 6 1 . . 8 5 ' r -l.lr - 2 .5 .7 8 7 . . 2 6 - 2 3 1 . . 4 2 18 Small-denomination time 10.7 8.8 -2.5 -4.5 -4.r -.9 -5.1 -9.4' -.6 19 Large-denomination time8 7.5 -10.7 -28.6 -25.1 -31.7 -20.2 -30.3 -22.3 -23.5 Debt components4 20 Federal 6.9 4.7 9.5 8.2 10.9 3.7 5.7 11.2 n.a. 21 Nonfederal 7.9 7.9 7.4 6.0 8.2 5.2 5.4' 6.5 n.a. 1. Unless otherwise noted, rates of change are calculated from average funds. Excludes individual retirement accounts (IRA) and Keogh balances at amounts outstanding in preceding month or quarter. depository institutions and money market funds. Also excludes all balances held 2. Figures incorporate adjustments for discontinuities associated with the by U.S. commercial banks, money market funds (general purpose and brokerimplementation of the Monetary Control Act and other regulatory changes to dealer), foreign governments and commercial banks, and the U.S. government. reserve requirements. To adjust for discontinuities due to changes in reserve M3: M2 plus large-denomination time deposits and term RP liabilities (in requirements on reservable nondeposit liabilities, the sum of such required amounts of $100,000 or more) issued by commercial banks and thrift institutions, reserves is subtracted from the actual series. Similarly, in adjusting for discon- term Eurodollars held by U.S. residents at foreign branches of U.S. banks tinuities in the monetary base, required clearing balances and adjustments to worldwide and at all banking offices in the United Kingdom and Canada, and compensate for float also are subtracted from the actual series. balances in both taxable and tax-exempt, institution-only money market mutual 3. The monetary base not adjusted for discontinuities consists of total funds. Excludes amounts held by depository institutions, the U.S. government, reserves plus required clearing balances and adjustments to compensate for float money market funds, and foreign banks and official institutions. Also subtracted at Federal Reserve Banks plus the currency component of the money stock less is the estimated amount of overnight RPs and Eurodollars held by institution-only the amount of vault cash holdings of thrift institutions that is included in the money market mutual funds. currency component of the money stock plus, for institutions not having required L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term reserve balances, the excess of current vault cash over the amount applied to Treasury securities, commercial paper and bankers acceptances, net of money satisfy current reserve requirements. After the introduction of contemporaneous market mutual fund holdings of these assets. reserve requirements (CRR), currency and vault cash figures are measured over Debt: Debt of domestic nonfinancial sectors consists of outstanding credit the weekly computation period ending Monday. market debt of the U.S. government, state and local governments, and private Before CRR, all components of the monetary base other than excess reserves nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conare seasonally adjusted as a whole, rather than by component, and excess sumer credit (including bank loans), other bank loans, commercial paper, bankers reserves are added on a not seasonally adjusted basis. After CRR, the seasonally acceptances, and other debt instruments. The source of data on domestic adjusted series consists of seasonally adjusted total reserves, which include nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted data are based on monthly averages. Growth rates for debt reflect adjustments for currency component of the money stock plus the remaining items seasonally discontinuities over time in the levels of debt presented in other tables. adjusted as a whole. 5. Sum of overnight RPs and Eurodollars, money market fund balances 4. Composition of the money stock measures and debt is as follows: (general purpose and broker-dealer), MMDAs, and savings and small time Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults deposits less the estimated amount of demand deposits and vault cash held by of depository institutions; (2) travelers checks of nonbank issuers; (3) demand thrift institutions to service their time and savings deposit liabilities. deposits at all commercial banks other than those due to depository institutions, 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, the U.S. government, and foreign banks and official institutions less cash items in money market fund balances (institution-only), less a consolidation adjustment the process of collection and Federal Reserve float; and (4) other checkable that represents the estimated amount of overnight RPs and Eurodollars held by deposits (OCD) consisting of negotiable order of withdrawal (NOW) and auto- institution-only money market mutual funds. matic transfer service (ATS) accounts at depository institutions, credit union 7. 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 depository institutions and overnight Eurodollars issued to U.S. 8. Large-denomination time deposits are those issued in amounts of $100,000 residents by foreign branches of U.S. banks worldwide, Money Market Deposit or more, excluding those booked at international banking facilities. Accounts (MMDAs), savings and small-denomination time deposits (time depos- 9. Large-denomination time deposits at commercial banks less those held by its—including retail RPs—in amounts of less than $100,000), and balances in both money market mutual funds, depository institutions, and foreign banks and taxable and tax-exempt general purpose and broker-dealer money market mutual official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • June 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 Factors 1990 1990 Jan. Feb. Mar. Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 269,857 265,438 268,483 263,407 264,181 265,438 268,648 268,385 268,634 268,005 U.S. government securities1' 2 2 Bought outright-system account 221,432 217,811 219,148 214,337 214,895 216,140 220,466 219,198 218,977 218,070 3 Held under repurchase agreements 985 0 306 0 0 0 615 0 332 0 Federal agency obligations 4 Bought outright 6,525 6,525 6,524 6,525 6,525 6,525 6,524 6,524 6,524 6,524 5 Held under repurchase agreements 119 0 80 0 0 0 64 0 144 0 6 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions2 7 Adjustment credit 341 75 78 996 1,600 75 56 9 207 45 8 Seasonal credit 44 61 83 40 59 61 59 65 85 96 9 Extended credit 27 1,738 1,982 36 229 1,738 1,944 2,056 1,934 2,023 10 Float 978 887 431 617 1,622 887 453 717 539 144 11 Other Federal Reserve assets 39,406 38,341 39,852 40,299 38,006 38,341 38,468 39,815 39,892 41,104 12 Gold stock 11,059 11,059 11,059 11,059 11,059 11,059 11,059 11,060 11,059 11,059 13 Special drawing rights certificate account.. 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 14 Treasury currency outstanding 19,650 19,724 19,802 19,683 19,710 19,724 19,773 19,790 19,806 19,823 ABSORBING RESERVE FUNDS 15 Currency in circulation 256,669 254,967 256,791 254,651 255,230 254,967 255,653 256,944 257,133 257,026 16 Treasury cash holdings 468 498 524 495 495 498 513 519 525 532 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 6,302 6,133 5,349 6,446 4,783 6,133 6,193 4,928 5,001 5,506 18 Foreign 255 218 215 213 236 218 211 188 221 217 19 Service-related balances and adjustments 2,075 1,906 2,161 2,035 2,024 1,906 2,520 2,115 1,819 2,206 20 Other 364 398 339 234 343 398 323 266 392 389 21 Other Federal Reserve liabilities and capital 8,928 8,973 8,997 8,829 8,985 8,973 8,760 9,005 9,180 9,172 22 Reserve balances with Federal Reserve Banks3 34,023 31,646 33,486 29,762 31,372 31,646 33,825 33,788 33,746 32,358 End-of-month figures Wednesday figures 1990 1990 Jan. Feb. Mar. Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 265,926 265,805 268,705 263,771 265,705 265,805 272,327 267,957 272,413 269,356 U.S. government securities1,2 24 Bought outright-system account 218,392 219,132 217,899 215,312 215,814 219,132 219,271 218,669 218,448 220,529 25 Held under repurchase agreements.... 0 0 1,423 0 0 0 4,303 0 2,324 0 Federal agency obligations 26 Bought outright 6,525 6,525 6,524 6,525 6,525 6,525 6,524 6,524 6,524 6,524 27 Held under repurchase agreements 0 0 510 0 0 0 448 0 1,009 0 28 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions2 29 Adjustment credit 656 57 92 947 2,488 57 174 11 1,335 30 30 Seasonal credit 42 59 154 37 59 59 63 69 92 94 31 Extended credit 35 1,662 1,917 42 1,332 1,662 1,550 1,889 1,784 1,771 32 Float 216 266 262 472 1,505 266 1,212 898 717 -146 33 Other Federal Reserve assets 40,061 38,103 39,925 40,436 37,981 38,103 38,781 39,897 40,180 40,554 34 Gold stock 11,059 11,059 11,060 11,059 11,059 11,059 11,059 11,060 11,059 11,059 35 Special drawing rights certificate account.. 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 36 Treasury currency outstanding 19,655 19,724 19,839 19,683 19,710 19,724 19,773 19,790 19,806 19,823 ABSORBING RESERVE FUNDS 37 Currency in circulation 253,123 255,186 257,675 254,957 255,495 255,186 256,322 257,298 257,129 257,372 38 Treasury cash holdings 479 504 540 495 495 504 519 524 531 540 Deposits, other than reserve balances, with Federal Reserve Banks 39 Treasury 13,153 6,613 4,832 5,654 5,310 6,613 5,745 4,747 5,816 6,218 40 Foreign 251 309 300 180 224 309 220 179 196 285 41 Service-related balances and adjustments 1,882 1,906 2,119 2,035 2,024 1,906 2,520 2,115 1,819 2,206 42 Other 357 409 304 218 302 409 288 257 292 397 43 Other Federal Reserve liabilities and capital 8,884 8,449 8,455 8,478 8,782 8,449 8,886 8,673 8,987 8,979 44 Reserve balances with Federal Reserve Banks3 27,029 31,729 33,897 31,013 32,358 31,729 37,176 33,530 37,026 32,758 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Excludes required clearing balances and adjustments to compensate for pledged with Federal Reserve Banks—and excludes any securities sold and float. scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. 2. Beginning with the May 1990 Bulletin, this table has been revised to Components may not add to totals because of rounding. correspond with the H.4.1 statistical release. 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 1987 1988 1989 1989 1990 Dec/ Dec/ Dec. Sept. Oct. Nov. Dec. Jan. Feb." Mar. 1 Reserve balances with Reserve Banks2 37,691 37,837 35,436 33,556 33,123 33,941 35,436 34,090 30,929 33,407 2 Total vault cash3 26,675 28,204 29,812" 29,091" 29,910" 29,549" 29,812" 31,301" 32,489 29,581 3 Vault* 24,449 25,909 27,374 26,570 27,275 27,048 27,374 28,841 29,693 27,250 4 Surplus5 2,226 2,295 2,439" 2,521" 2,636" 2,502" 2,439" 2,461" 2,795 2,331 5 Total reserves 62,141 63,746 62,810 60,126 60,397 60,989 62,810 62,931 60,623 60,657 6 Required reserves 61,094 62,699 61,888 59,188 59,378 60,044 61,888 61,914 59,634 59,800 7 Excess reserve balances at Reserve Banks 1,046 1,047 922 938 1,020 945 922 1,016 989 857 8 Total borrowings at Reserve Banks 777 1,716 265 693 555 349 265 440 1,448 2,124 9 Seasonal borrowings at Reserve Banks 93 130 84 452 330 134 84 47 51 78 10 Extended credit at Reserve Banks 483 1,244 20 22 21 21 20 26 535 1,950 Biweekly averages of daily figures for weeks ending 1989 1990 Nov. 29 Dec. 13 Dec. 27 Jan. 10 Jan. 24 Feb. 7 Feb. 21 Mar. 7" Mar. 21 Apr. 4 11 Reserve balances with Reserve Banks2 .... 33,394 35,399 35,130 36,627 34,423 29,799 30,597 32,724 33,730 33,432 12 Total vault cash3 30,186" 28,851" 30,445" 30,725" 30,277" 34,175" 32,780" 30,220 29,259 29,585 13 Vault4.. 27,574 26,509 27,903 28,335 28,045 31,156 29,956 27,706 27,004 27,274 14 Surplus3 2,612" 2,342" 2,543" 2,390" 2,233" 3,019" 2,824" 2,514 2,255 2,311 15 Total reserves6 60,967 61,907 63,033 64,961 62,468 60,955 60,553 60,430 60,734 60,706 16 Required reserves 59,958 61,149 62,015 63,844 61,627 59,735 59,585 59,633 59,997 59,640 17 Excess reserve balances at Reserve Banks 1,009 759 1,018 1,117 841 1,220 968 797 737 1,066 18 Total borrowings at Reserve Banks 441 151 351 339 300 865 1,480 1,967 2,179 2,157 19 Seasonal borrowings at Reserve Banks .. 115 87 89 58 41 44 50 60 75 96 20 Extended credit at Reserve Banks8 23 22 19 19 27 33 133 1,841 1,995 1,965 1. These data also appear in the Board's H.3 (502) release. For address, see in- with Federal Reserve Banks, which exclude required clearing balances and side front cover. adjustments to compensate for float, plus vault cash used to satisfy reserve 2. Excludes required clearing balances and adjustments to compensate for requirements. Such vault cash consists of all vault cash held during the lagged float. computation period by institutions having required reserve balances at Federal 3. Dates refer to the maintenance periods in which the vault cash can be used Reserve Banks plus the amount of vault cash equal to required reserves during the to satisfy reserve requirements. Under contemporaneous reserve requirements, maintenance period at institutions having no required reserve balances. maintenance periods end 30 days after the lagged computation periods in which 7. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy the balances are held. reserve requirements less required reserves. 4. Equal to all vault cash held during the lagged computation period by 8. Extended credit consists of borrowing at the discount window under the institutions having required reserve balances at Federal Reserve Banks plus the terms and conditions established for the extended credit program to help amount of vault cash equal to required reserves during the maintenance period at depository institutions deal with sustained liquidity pressures. Because there is institutions having no required reserve balances. not the same need to repay such borrowing promptly as there is with traditional 5. Total vault cash at institutions having no required reserve balances less the short-term adjustment credit, the money market impact of extended credit is amount of vault cash equal to their required reserves during the maintenance similar to that of nonborrowed reserves. period. 9. Data are prorated monthly averages of biweekly averages. 6. Total reserves not adjusted for discontinuities consist of reserve balances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • June 1990 1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Member Banks1 Averages of daily figures, in millions of dollars 1989 week ending Monday MMaattuurriittyy aanndd ssoouurrccee Feb. 6 Feb. 13 Feb. 20 Feb. 27 Mar. 6 Mar. 13 Mar. 20 Mar. 27 Apr. 3 Federal funds purchased, repurchase agreements, and other selected borrowing in immediately available funds From commercial banks in the United States 1 For one day or under continuing contract 71,750 71,162 69,950 72,395 74,375 74,764 72,665 69,297 69,402 2 For all other maturities 10,289 10,627 11,937 1111,,337788 1111,,006611 1111,,220088 1111,,224400 1122,,007755 1100,,224488 From other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 3 For one day or under continuing contract 27,292 29,241 27,903 25,142 31,371 30,195 29,143 25,678 28,748 4 For all other maturities 6,524 6,787 7,467 7,403 7,190 8,378 7,648 8,758 7,805 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 14,289 14,754 15,077 15,031 16,834 15,413 15,916 14,954 15,764 6 For all other maturities 13,279 14,100 13,592 13,484 1133,,559988 1144,,445566 1144,,888811 1177,,226688 1133,,997711 All other customers 7 For one day or under continuing contract 27,966 27,901 27,792 29,237 27,612 27,710 27,124 25,489 27,596 8 For all other maturities 9,980 10,178 10,299 9,978 10,104 10,085 10,591 13,275 10,482 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 41,248 39,096 38,742 37,275 43,328 40,929 41,534 40,157 39,236 10 To all other specified customers 17,118 15,055 16,176 15,684 17,158 16,936 16,104 15,799 17,056 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. 2. Brokers and nonbank dealers in securities; other depository institutions; These data also appear in the Board's H.5 (507) release. For address, see inside foreign banks and official institutions; and United States government agencies, front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Extended credit2 AAddjjuussttmmeenntt ccrreeddiitt aanndd FFFeeedddeeerrraaalll RRReeessseeerrrvvveee SSeeaassoonnaall ccrreeddiitt11 First 30 days of borrowing After 30 days of borrowing3 BBBaaannnkkk On Effective Previous On Effective Previous On Effective Previous Effective date 4/19/90 date rate 4/19/90 date rate 4/19/90 date rate Boston 7 2/24/89 6 Vi 7 2/24/89 6 Vl 8.80 4/19/90 8.85 4/5/90 New York 2/24/89 2/24/89 4/19/90 4/5/90 Philadelphia 2/24/89 2/24/89 4/19/90 4/5/90 Cleveland 2/24/89 2/24/89 4/19/90 4/5/90 Richmond 2/24/89 2/24/89 4/19/90 4/5/90 Atlanta 2/24/89 2/24/89 4/19/90 4/5/90 Chicago 2/24/89 2/24/89 4/19/90 4/5/90 St. Louis 2/24/89 2/24/89 4/19/90 4/5/90 Minneapolis 2/24/89 2/24/89 4/19/90 4/5/90 Kansas City 2/24/89 2/24/89 4/19/90 4/5/90 Dallas 2/27/89 2/27/89 4/19/90 4/5/90 San Francisco ... 7 2/24/89 6 Vi 7 2/24/89 6 Vl 8.80 4/19/90 8.85 4/5/90 Range of rates for adjustment credit in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. level)— Bank level)— Bank level)— Bank Effective date All F.R. of Effective date All F.R. of Effective date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1977. 6 6 1980—July 28 10-11 10 1984—Apr. 9 %Vi-9 9 1978—Jan. 9 6-6 Vl 6V1 29 10 10 13 9 9 J M A u u a ly g y . 2 2 1 1 1 1 3 0 2 0 1 6 I W 6 m m - 7 V 1 l 7 V A I m 7 61 1 V 3 V / a 4 i 1981—M S N D e e o a p c v y t . . . 1 2 5 5 8 7 6 1 1 3 2 1 1 1 - - 1 2 4 1 1 3 4 1 1 1 1 1 3 4 4 1 2 1985— D M N e o a c v y . . 2 2 2 2 2 1 4 4 0 6 I iV V I 8 V i i 8 V - - i 9 S i I I 8 8 8 V V W V i i i Sept. 22 8 8 Nov. 2 13-14 13 Oct. 16 8-8W 6 13 13 1986—Mar. 7 1-1 Vi 1 Nov. 2 1 0 8W8 V-9l 1/2 8 9 V V l l Dec. 4 12 12 Apr. 2 1 1 0 (>V 1 i-l 6 1 Vi 3 9Vi 9 Vi 1982—July 20 im-12 11 Vi July 11 6 6 23 llVi 11 Vl Aug. 21 51/2-6 5W 1979—July 20 10 10 Aug. 2 11-1 IVi 11 22 5 Vi 5 Vi Aug. 17 lO-lOVi 10W 3 11 11 20 10W 10 Vl 16 10W 10 Vi 1987—Sept. 4 5W-6 6 Sept. 19 10W-11 11 27 10-10W 10 11 6 6 21 11 11 30 10 10 Oct. 8 II-12 12 Oct. 12 9W-10 9 Vl 1988—Aug. 9 6-6 Vl 6 Vi 10 12 12 13 9 Vi 9 Vi 11 6 Vi 6 Vl Nov. 22 9-9 Vi 9 1980—Feb. 15 12-13 13 26 9 9 1989—Feb. 24 6V1-I 1 19 13 13 Dec. 14 8W-9 9 27 1 1 May 29 12-13 13 15 81/2-9 m 30 12 12 17 8 Vi 8 Vl In effect Apr. 19, 1990 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 Vi percent above the rate on adjustment adjustment credit borrowings by institutions with deposits of $500 million or more credit. The program was reestablished for 1986 and 1987 but was not renewed for that had borrowed in successive weeks or in more than four weeks in a calendar 1988. quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7, 2. Extended credit is available to depository institutions, when similar assist- 1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was ance is not reasonably available from other sources, when exceptional circum- adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and stances or practices involve only a particular institution or when an institution is to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective experiencing difficulties adjusting to changing market conditions over a longer Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the period of time. formula for applying the surcharge was changed from a calendar quarter to a 3. For extended-credit loans outstanding more than 30 days, a flexible rate moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. somewhat above rates on market sources of funds ordinarily will be charged, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • June 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 Effective date Net transaction accounts*'* $0 million-$40.4 million 12/19/89 More than $40.4 million ... 12/19/89 Nonpersonal time deposits5 By original maturity Less than 1 Vi years 10/6/83 1V2 years or more 10/6/83 Eurocurrency liabilities All types 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 1990 TTyyppee ooff ttrraannssaaccttiioonn 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. TREASURY SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 18,983 8,223 14,284 0 0 219 8,794 1,883 423 108 2 Gross sales 6,051 587 12,818 934 0 1,633 0 0 1,489 3,384 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 9,029 2,200 12,730 800 0 1,400 3,530 0 1,000 400 Others within 1 year 5 Gross purchases 3,659 2,176 327 0 0 0 155 0 0 0 6 Gross sales 300 0 0 0 0 0 0 0 0 0 7 Maturity shift 21,504 23,854 28,848 4,200 1,832 852 3,915 1,268 1,201 2,845 8 Exchange -20,388 -24,588 -25,783 -4,025 0 -2,678 -5,502 0 -2,489 -5,418 9 Redemptions 70 0 500 0 0 500 0 0 0 0 1 to 5 years 10 Gross purchases 10,231 5,485 1,436 0 0 0 0 0 0 0 11 Gross sales 452 800 490 150 0 24 0 0 0 0 12 Maturity shift -17,975 -17,720 -25,534 -3,321 -1,832 -758 -2,869 -1,268 -1,163 -1,713 13 Exchange 18,938 22,515 23,250 3,425 0 2,552 4,902 0 2,373 4,743 5 to 10 years 14 Gross purchases 2,441 1,579 287 0 0 0 0 0 0 0 15 Gross sales 0 175 29 0 0 0 0 0 0 0 16 Maturity shift -3,529 -5,946 -2,231 -879 0 -95 -1,046 0 -38 -451 17 Exchange 950 1,797 1,934 400 0 126 400 0 116 450 Over 10 years 18 Gross purchases 1,858 1,398 284 0 0 0 0 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -188 -1,086 0 0 0 0 0 0 -681 21 Exchange 500 275 600 200 0 0 200 0 0 226 All maturities 22 Gross purchases 37,170 18,863 16,617 0 0 219 8,949 1,883 423 108 23 Gross sales 6,803 1,562 13,337 1,084 0 1,657 0 0 1,489 3,384 24 Redemptions 9,099 2,200 13,230 800 0 1,900 3,530 0 1,000 400 Matched transactions 25 Gross sales 950,923 1,168,484 1,323,480 146,611 116,502 111,430 105,696 103,077 127,729 116,220 26 Gross purchases 950,935 1,168,142 1,326,542 147,228 120,144 111,893 105,243 104,827 121,411 120,637 Repurchase agreements2 27 Gross purchases 314,621 152,613 129,518 0 9,396 0 15,350 22,737 16,185 0 28 Gross sales 324,666 151,497 132,688 0 9,396 0 15,350 21,145 17,777 0 29 Net change in U.S. government securities 11,234 15,872 -10,055 -1,267 3,642 -2,875 4,966 5,225 -9,976 741 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 0 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 276 587 442 0 54 30 0 0 0 0 Repurchase agreements2 33 Gross purchases 80,353 57,259 38,835 0 2,874 0 1,247 2,992 1,741 0 34 Gross sales 81,350 56,471 40,411 0 2,874 0 1,247 2,467 2,266 0 35 Net change in federal agency obligations -1,274 198 -2,018 0 -54 -30 0 525 -525 0 36 Total net change in System Open Market Account 9,961 16,070 -12,073 -1,267 3,588 -2,905 4,966 5,750 -10,501 741 1. Sales, redemptions, and negative figures reduce holdings of the System Open 2. In July 1984 the Open Market Trading Desk discontinued accepting bankers Market Account; all other figures increase such holdings. Details may not add to acceptances in repurchase agreements, totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • June 1990 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements' Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1990 1990 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Jan. Feb. Mar. Consolidated condition statement ASSETS 1 Gold certificate account 11,059 11,059 11,060 11,059 11,059 11,059 11,059 11,060 2 Special drawing rights certificate account 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 3 Coin 568 572 571 575 572 524 568 568 Loans 4 To depository institutions 1,779 1,787 1,969 3,211 1,895 733 1,779 2,163 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 6,525 6,524 6,524 6,524 6,524 6,525 66,,552255 66,,552244 8 Held under repurchase agreements 0 448 0 1,009 0 0 0 510 U.S. Treasury securities Bought outright 9 Bills 96,937 96,876 96,274 96,054 98,134 96,197 96,937 9955,,550044 10 Notes 91,239 91,439 91,439 91,439 91,439 91,381 91,239 91,440 11 Bonds 30,955 30,955 30,955 30,955 30,955 30,814 30,955 30,955 12 Total bought outright2 219,132 219,271 218,669 218,448 220,529 218,392 219,132 217,899 13 Held under repurchase agreements 0 4,303 0 2,324 0 0 0 1,423 14 Total U.S. Treasury securities 219,132 223,574 218,669 220,772 220,529 218,392 219,132 219,322 15 Total loans and securities 227,435 232,333 227,162 231,517 228,948 225,649 227,435 228,518 16 Items in process of collection 5,936 7,464 6,981 6,263 5,348 5,848 5,936 6,549 17 Bank premises 791 792 793 794 793 790 791 793 Other assets 18 Denominated in foreign currencies 31,041 31,313 32,367 32,413 34,186 31,920 31,041 33,452 19 All other4 6,320 6,625 6,502 6,867 5,538 7,723 6,320 5,679 20 Total assets 291,669 298,676 293,954 298,006 294,962 292,033 291,669 295,137 LIABILITIES 21 Federal Reserve notes 236,534 237,640 238,604 238,428 238,662 234,471 236,534 238,944 Deposits 22 To depository institutions 33,811 39,886 36,041 38,852 35,536 29,464 33,811 3366,,112299 23 U.S. Treasury—General account 6,613 5,745 4,747 5,816 6,218 13,153 6,613 4,832 24 Foreign—Official accounts 309 220 179 196 285 251 309 300 25 Other 409 288 257 292 397 357 409 304 26 Total deposits 41,142 46,139 41,223 45,157 42,436 43,228 41,142 41,565 27 Deferred credit items 5,543 6,011 5,454 5,434 4,886 5,452 5,543 6,173 28 Other liabilities and accrued dividends3 3,853 3,987 3,714 3,999 3,981 3,911 3,853 3,969 29 Total liabilities 287,073 293,776 288,995 293,018 289,964 287,060 287,073 290,651 CAPITAL ACCOUNTS 30 Capital paid in 2,275 2,280 2,287 2,295 2,295 2,249 2,275 2,313 31 Surplus 2,219 2,243 2,243 2,243 2,243 2,243 2,219 2,139 32 Other capital accounts 103 377 429 450 461 481 103 34 33 Total liabilities and capital accounts 291,669 298,676 293,954 298,006 294,962 292,033 291,669 295,137 34 MEMO: Marketable U.S. Treasury securities held in custody for foreign and international accounts 224,626 223,812 221,808 220,507 223,490 228,073 224,626 254,767 Federal Reserve note statement 35 Federal Reserve notes outstanding issued to bank 280,388 279,914 279,727 279,342 278,938 279,920 280,388 278,709 36 LESS: Held by bank 43,854 42,274 41,123 40,914 40,276 45,449 43,854 39,765 37 Federal Reserve notes, net 236,534 237,640 238,604 238,428 238,662 234,471 236,534 238,944 Collateral held against notes net: 38 Gold certificate account 11,059 11,059 11,060 11,059 11,059 11,059 11,059 11,060 39 Special drawing rights certificate account 8,518 8,518 8,518 8,518 8,518 8,518 8,518 8,518 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. Treasury and agency securities 216,957 218,063 219,027 218,851 219,084 214,894 216,957 219,366 42 Total collateral 236,534 237,640 238,604 238,428 238,662 234,471 236,534 238,944 1. Some of these data also appear in the Board's H.4.1 (503) release. For 3. Valued monthly at market exchange rates. address, see inside front cover. Components may not add to totals because of 4. Includes special investment account at the Federal Reserve Bank of Chicago rounding. in Treasury bills maturing within 90 days. 2. Includes securities loaned—fully guaranteed by U.S. Treasury securities 5. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes securities sold and scheduled market exchange rates of foreign-exchange commitments. to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1990 1990 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Jan. 31 Feb. 28 Mar. 30 1 Loans—Total 1,874 1,787 1,969 3,211 1,895 850 1,874 2,039 2 3 4 W 9 1 1 6 i t d d h a a in y y s s 1 t t 5 o o d 9 1 a 0 y y d e s a a r y s 1,86 7 7 0 1,7 4 4 3 0 4 1,9 5 1 4 0 5 3,20 4 7 0 1,89 4 0 1 84 2 0 8 1,86 0 7 7 2,02 1 4 0 5 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 1 1 1 1 1 1 9 0 1 2 3 4 5 U. O W O O 9 S 1 1 6 . v v v i t e e e T d d h r r r a a r i n e y y 5 1 1 a s s 0 s y y 1 t u t e e 5 y o o r a a e d y r r a 9 1 a s r 0 t s y y s o t e d e s o c 1 a 5 a u r 1 y r y 0 s i e t i a y e r e s s a — rs T otal 2 4 1 6 5 2 1 1 6 9 6 6 6 2 0 , , , , . , . 4 1 4 2 6 6 6 8 3 7 5 5 0 5 1 2 9 2 7 7 6 2 4 2 6 5 2 1 1 7 3 6 6 6 4 2 , , , , , , , 8 5 5 2 0 2 6 0 8 7 9 5 3 0 5 1 4 1 2 9 7 2 5 1 6 5 2 1 1 8 6 8 6 3 2 , , , , , , , 5 5 1 6 2 6 6 8 0 0 6 5 0 1 1 7 9 9 2 7 4 2 4 2 6 5 2 1 1 8 0 6 6 6 2 0 , , , , , , , 5 7 7 2 1 6 4 8 7 5 5 3 0 4 1 2 4 2 9 7 0 2 4 2 6 5 2 1 1 6 6 0 6 6 2 2 , , , , , , , 9 5 5 2 0 0 6 8 8 2 5 9 1 0 1 5 9 2 5 0 7 2 4 1 6 5 2 1 1 7 8 3 6 8 2 0 , , , , , , , 2 3 4 7 0 6 3 3 9 5 0 0 2 7 3 2 2 6 7 2 2 2 4 1 5 2 6 1 1 6 6 9 6 6 0 2 , , , , . . , 4 4 1 2 6 6 6 8 3 7 5 5 5 0 1 2 9 2 7 6 7 21 5 6 5 2 1 6 7 6 0 6 6 2 , , , , , , , 2 5 8 1 2 0 6 8 8 9 4 5 0 3 1 1 9 9 2 7 0 2 2 2 1 1 1 1 0 1 2 7 8 9 6 Fe O 9 O O W d 1 1 6 e v v v i r e e t e d d a h r r r a a l i n y y 5 1 1 a s s 0 g y y 1 t e t e e y 5 o o n a a e d r c r a 9 1 y s a r 0 t y s y o t o e d s o b a 1 5 a l r y 1 i y g s 0 e a a y t r i e o s a n r s s — Total 6 3 1 1 , , , , 5 1 3 2 5 0 1 2 2 4 5 5 5 8 5 3 2 8 5 7 8 6 3 1 1 , , , , 9 0 4 8 3 0 1 7 8 4 7 2 5 8 2 0 8 4 4 7 8 6 3 1 1 , , , , 5 0 7 3 0 1 2 8 3 7 5 8 8 4 0 9 4 7 5 8 7 3 1 1 1 , , , , , 5 0 5 3 2 0 1 3 8 8 7 4 5 8 3 0 9 4 4 7 8 3 6 1 1 , , , , 0 5 4 5 0 1 1 9 2 2 7 6 7 8 8 4 6 4 2 5 8 6 3 1 1 , , , , 5 2 6 2 0 1 1 2 3 6 5 5 8 1 5 8 8 3 7 8 9 6 3 1 1 , , , , 1 5 5 3 2 0 1 2 2 5 4 5 5 8 3 5 8 2 5 7 8 6 3 1 1 , , , , 0 5 5 4 0 1 1 9 2 7 2 6 7 8 8 4 4 6 2 5 8 1. Holdings under repurchase agreements are classified as maturing within 15 NOTE: Components may not add to totals because of rounding, days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • June 1990 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1989 1990 IItteemm DD 1199 ee 88 cc 66 .. DD 1199 ee 88 cc 77 // DD 1199 ee 88 cc 88 // DD 1199 ee 88 cc 99 .. Aug. Sept. Oct. Nov. Dec. Jan. Feb.' Mar. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 58.02 58.59 60.59 60.03 58.91 59.29 59.64 59.65 60.03 59.90 60.22 60.30 22 NNoonnbboorrrroowweedd rreesseerrvveess 57.20 57.82 58.88 59.77 58.23 58.60 59.08 59.30 59.77 59.46 58.77 58.17 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt 57.50 58.30 60.12 59.79 58.27 58.62 59.11 59.32 59.79 59.48 59.30 60.12 44 RReeqquuiirreedd rreesseerrvveess 56.65 57.55 59.55 59.11 58.02 58.35 58.62 58.70 59.11 58.88 59.23 59.44 55 MMoonneettaarryy bbaassee55 241.43' 258.06 275.24 284.95'' 280.76' 281.81' 282.79' 283.22' 284.95' 287.51' 289.71 291.82 Not seasonally adjusted 6 Total reserves3 59.46 60.07 62.22 61.67 58.40 59.02 59.27 59.87 61.67 61.58 59.20 59.23 7 Nonborrowed reserves 58.64 59.30 60.50 61.40 57.72 58.33 58.72 59.52 61.40 61.14 57.75 57.11 8 Nonborrowed reserves plus extended credit 58.94 59.78 61.75 61.42 57.77 58.35 58.74 59.54 61.42 61.17 58.29 59.06 9 Required reserves 58.09 59.03 61.17 60.75 57.51 58.09 58.25 58.92 60.75 60.56 58.21 58.38 10 Monetary base5 245.17' 262.00 279.54 289.45' 281.03' 280.65' 281.34' 284.11' 289.45' 288.67' 286.50 288.86 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS 11 Total reserves3 59.56 62.14 63.75 62.81 59.56 60.13 60.40 60.99 62.81 62.93 60.62 60.66 12 Nonborrowed reserves 58.73 61.36 62.03 62.54 58.88 59.43 59.84 60.64 62.54 62.49 59.17 58.53 13 Nonborrowed reserves plus extended credit4 59.04 61.85 63.27 62.56 58.93 59.46 59.86 60.66 62.56 62.52 59.71 60.48 14 Required reserves 58.19 61.09 62.70 61.89 58.67 59.19 59.38 60.04 61.89 61.91 59.63 59.80 15 Monetary base5 247.62' 266.06 283.00 292.55' 284.06' 283.61' 284.33' 287.19' 292.55' 292.13' 290.02 292.37 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 1990 1986 1987 1988 1989 Item Dec. Dec. Dec. Dec. Dec. Jan. Feb. Mar. Seasonally adjusted 1 Ml 724.7 750.4 787.5 794.8 794.8 794.7 801.2 804.6 ? M2 2,814.2 2,913.2 3,072.4 3,220.0' 3,220.0' 3,229.1 3,254.0' 3,267.9 M3 3,494.5 3,678.7 3,918.4 4,040.6' 4,040.6' 4,045.8' 4,063.1' 4,065.9 4 L 4,135.5 4,338.9 4,676.0 4,864.4' 4,864.4' 4,864.6' 4,876.1 n.a. 5 7,597.0 8,316.2 9,070.7 9,771.6 9,771.6 9,815.8' 9,877.8 n.a. Ml components 6 Currency 180.6 196.7 211.8 221.9 221.9 224.6 226.6 228.4 7 Travelers checks 6.5 7.0 7.5 7.4 7.4 7.5 7.6 7.6 8 Demand deposits5 302.1 287.0 287.0 279.7 279.7 277.3 280.2 279.3 9 Other checkable deposits 235.5 259.7 281.3 285.7 285.7 285.3 286.8 289.2 Nontransactions components 10 In M2 2,089.6 2,162.8 2,284.9 2,425.2' 2,425.2' 2,434.4 2,452.8' 2,463.3 11 In M3 only8 680.3 765.5 845.9 820.6' 820.6' 816.7' 809.1' 798.0 Money market deposit accounts n Commercial banks 377.7' 356.4' 350.2' 351.5' 351.5' 352.4' 355.9' 359.0 13 Thrift institutions 193.3r 167.4r 150.1' 132.2' 132.2' 132.5' 133.4' 135.8 Savings deposits 14 Commercial Banks 155.8' 178.3' 192.0' 188.5' 118888..55'' 118899..88'' 119911..88'' 119933..44 15 Thrift institutions 214.3r 236.6' 235.9' 220.5' 220.5' 220.4' 221.8' 221.2 Small-denomination time deposits9 16 Commercial Banks 366.3 388.1 447.5 528.6 528.6 531.5 534.8 537.3 17 Thrift institutions 489.9 529.7 583.5 613.7' 613.7' 611.r 606.3' 606.0 Money market mutual funds 18 General purpose and broker-dealer 208.7 222.0 240.9 311.5 311.5 318.0 326.3 327.4 19 Institution-only 83.8 89.0 87.1 102.3 102.3 103.2 103.7 105.4 Large-denomination time deposits10 70 Commercial Banks 289.8 326.9 368.2 401.5' 401.5' 401.2 399.4' 396.8 21 Thrift institutions 150.0 161.9 172.9 156.8 156.8 152.9 150.0 147.1 Debt components 22 Federal debt 1,805.8 1,957.4 2,113.5 2,265.4 2,265.4 2,276.1 2,297.4 n.a. 23 Nonfederal debt 5,791.2 6,358.6 6,957.2 7,506.2 7,506.2 7,539.7' 7,580.4 n.a. Not seasonally adjusted Ml 740.5 766.4 804.5 812.1 812.1 802.2 787.8 795.4 ">5 M2 2,826.5 2,925.6 3,085.2 3,232.9 3,232.9 3,240.8' 3,241.9r 3,262.7 ">6 M3 3,508.8 3,692.7 3,932.5 4,054.7' 4,054.7' 4,054.9' 4,051.7' 4,064.6 T7 L 4,151.5 4,355.2 4,692.7 4,881.8' 4,881.8' 4,883.2' 4,871.1 n.a. 28 7,580.7 8,297.7 9,056.0 9,757.0 9,757.0 9,805.7' 9,850.7 n.a. Ml components 79 183.0 199.3 214.8 225.3 225.3 222.9 224.3 227.0 30 6.0 6.5 6.9 6.9 6.9 7.0 7.2 7.3 31 314.0 298.6 298.9 291.6 291.6 283.0 271.4 271.7 32 Other checkable deposits 237.5 262.0 283.8 288.4 288.4 289.3 285.0 289.4 Nontransactions components 33 M2 ...., 2,086.0 2,159.2 2,280.8 2,420.8 2,420.8 2,438.6' 2,454.1' 2,467.3 34 M3 only 682.3 767.0 847.3 821.8' 821.8' 814.1' 809.8' 801.9 Money market deposit accounts 35 379.8 359.0 353.2 355.0 335555..00 356.3 335577..77 360.6 36 Thrift institutions 192.9 167.5 150.6 132.8' 132.8' 132.9' 133.3' 136.1 Savings deposits 37 154.4 176.9 190.6 187.2 118877..22 189.0 119900..55 119933..22 38 Thrift institutions 212.7 234.9 234.2 219.0 219.0 218.8' 219.5 220.8 Small-denomination time deposits9 39 366.1 387.3 446.0 526.4 526.4 530.9 553355..33'' 538.4 40 Thrift institutions 489.8 529.1 582.4 612.3 612.3 613.2' 608.5' 605.3 Money market mutual funds 41 General purpose and broker-dealer 208.0 222211..55 224400..55 311.2 331111..22 316.8 332277..88 333322..00 42 Institution-only 84.4 89.6 87.6 102.9 102.9 106.0 107.0 106.8 Large-denomination time deposits10 43 289.2 325.8 366.9 399.8 399.8 398.9 399.1' 399.7 44 Thrift institutions 150.7 162.9 174.2 158.3 158.3 154.0 150.4 146.2 Debt components 45 1,803.9 1,955.6 2,111.8 2,264.2 2,264.2 2,275.5 2,292.5 n.a. 46 Nonfederal debt 5,776.8 6,342.0 6,944.2 7,492.8 7,492.8 7,530.2' 7,558.2 n.a. For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • June 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 depository institutions and overnight Eurodollars issued to U.S. and official institutions less cash items in the process of collection and Federal residents by foreign branches of U.S. banks worldwide, MMDAs, savings and Reserve float. small-denomination time deposits (time deposits—including retail RPs—in 6. Consists of NOW and ATS balances at all depository institutions, credit amounts of less than $100,000), and balances in both taxable and tax-exempt union share draft balances, and demand deposits at thrift institutions. general purpose and broker-dealer money market mutual funds. Excludes indi- 7. Sum of overnight RPs and overnight Eurodollars, money market fund vidual retirement accounts (IRA) and Keogh balances at depository institutions balances (general purpose and broker-dealer), MMDAs, and savings and small and money market funds. Also excludes all balances held by U.S. commercial time deposits. banks, money market hinds (general purpose and broker-dealer), foreign govern- 8. Sum of large time deposits, term RPs, and term Eurodollars of U.S. ments and commercial 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. Small-denomination time deposits—including retail RPs—are those issued worldwide and at all banking offices in the United Kingdom and Canada, and in amounts of less than $100,000. All individual retirement accounts (IRA) and balances in both taxable and tax-exempt, institution-only money market mutual Keogh accounts at commercial banks and thrifts are subtracted from small time funds. Excludes amounts held by depository institutions, the U.S. government, deposits. money market funds, and foreign banks and official institutions. Also subtracted 10. Large-denomination time deposits are those issued in amounts of $100,000 is the estimated amount of overnight RPs and Eurodollars held by institution-only or more, excluding those booked at international banking facilities. money market mutual funds. 11. Large-denomination time deposits at commercial banks less those held by L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term money market mutual funds, depository institutions, and foreign banks and Treasury securities, commercial paper and bankers acceptances, net of money official institutions. market mutual fund holdings of these assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A15 1.22 BANK DEBITS AND DEPOSIT TURNOVER1 Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1989 1990 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Dec. Jan. DEBITS TO Seasonally adjusted Demand deposits3 1 All insured banks 217,116.2 226,888.4 272,793.1 292,446.5 281,432.2 293,424.9 296,768.7 280,074.4 286,425.2 2 Major New York City banks 104,496.3 107,547.3 121,727.5 121,378.1 125,206.9 136,039.0 130,440.2 131,681.3 123,744.6 3 Other banks 112,619.8 119,341.2 150,898.9 171,068.3 156,225.3 155,385.9 166,328.5 148,393.1 162,680.5 4 ATS-NOW accounts4 2,402.7 2,757.7 3,501.8 3,943.1 3,601.9 3,911.9 3,855.2 3,727.5 3,910.4 5 Savings deposits 526.5 583.0 636.6 650.0 672.3 665.4 610.3 615.8 609.2 DEPOSIT TURNOVER Demand deposits3 6 All insured banks 612.1 641.2 781.0 841.8 802.2 826.4 855.7 797.7 820.0 7 Major New York City banks 2,670.6 2,903.5 3,401.6 3,402.4 3,482.2 3,486.5 3,499.8 3,578.1 3,422.4 8 Other banks 357.0 376.8 481.5 548.8 496.2 492.5 537.3 472.1 519.5 9 ATS-NOW accounts4 13.8 14.7 18.3 20.6 18.8 20.1 19.7 18.9 19.8 10 Savings deposits 3.1 3.1 3.5 3.6 3.7 3.6 3.3 3.3 3.3 DEBITS TO Not seasonally adjusted Demand deposits 11 All insured banks 217,125.1 227,010.7 271,957.3 304,407.5 266,882.2 292,750.0 285,372.8 283,603.3 303,668.0 12 Major New York City banks 104,518.8 107,565.0 122,241.8 132,158.8 115,187.4 138,964.6 129,905.5 129,690.0 131,796.0 13 Other banks 112,606.2 119,445.7 149,715.5 172,248.7 151,694.7 153,785.5 155,467.3 153,913.3 171,872.0 14 ATS-NOW accounts4 2,404.8 2,754.7 3,496.5 3,762.6 3,702.7 3,891.4 3,611.5 3,904.0 4,263.7 15 MMDA 1,954.2 2,430.1 2,790.8 3,068.7 2,554.3 2,651.5 2,569.1 2,880.5 3,075.9 16 Savings deposits 526.8 578.0 635.8 656.7 665.2 690.4 555.9 630.1 629.3 DEPOSIT TURNOVER Demand deposits3 17 All insured banks 612.3 641.7 779.0 891.5 763.1 829.6 815.6 769.3 847.9 18 Major New York City banks 2,674.9 2,901.4 3,415.4 3,911.6 3,279.7 3,594.8 3,548.5 3,250.4 3,433.3 19 Other banks 356.9 377.1 477.8 559.9 482.2 489.4 496.3 468.1 537.5 20 ATS-NOW accounts4 13.8 14.7 18.3 20.0 19.5 20.3 18.5 19.5 21.1 21 MMDA6 5.3 6.9 8.3 9.2 7.6 7.8 7.4 8.2 8.7 22 Savings deposits 3.1 3.1 3.5 3.6 3.7 3.8 3.0 3.4 3.4 1. Historical tables containing revised data for earlier periods may be obtained of states and political subdivisions. from the Monetary and Reserves Projections Section, Division of Monetary 4. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. counts authorized for automatic transfer to demand deposits (ATS). ATS data are 20551. available beginning December 1978. These data also appear on the Board's G.6 (406) release. For address, see inside 5. Excludes ATS and NOW accounts, MMDA and special club accounts, such front cover. as Christmas and vacation clubs. 2. Annual averages of monthly figures. 6. Money market deposit accounts. 3. Represents accounts of individuals, partnerships, and corporations and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • June 1990 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1989 1990 Apr. May June July Aug. Sept. Oct.' Nov.' Dec.' Jan.' Feb.' Mar. Seasonally adjusted 1 Total loans and securities2 2,469.2 2,482.9 2,496.0 2,512.4 2,527.4 2,538.9 2,563.3 2,579.0 2,582.6 2,585.8 2,603.8 2,623.8 2i U.S. government securities 370.5 372.5 373.7 374.0 375.5 378.1 389.9 394.8 394.4 402.4 412.2 418.9 Other securities 188.3 187.8 187.3 186.3 183.8 183.1 180.9 179.3 180.3 180.2 180.1 180.2 4 Total loans and leases2 1,910.5 1,922.6 1,935.0 1,952.1 1,968.2 1,977.7 1,992.5 2,004.9 2,007.9 2,003.2 2,011.6 2,024.7 5 Commercial and industrial ..... 621.7 626.6 627.1 631.8 636.1 637.7 641.9 645.9 642.9 639.0 637.9 642.8 6 Bankers acceptances held ... 8.3 8.3 8.2 7.9 8.1 8.4 8.8 8.1 77..66 77..44 88..00 88..44 7 Other commercial and industrial 613.4 618.4 618.9 623.9 628.0 629.3 633.2 637.8 635.3 631.6 629.8 634.4 8 U.S. addressees4 607.0 612.8 613.2 619.8 624.3 625.4 628.9 632.7 629.8 623.9 624.0 628.3 9 Non-U.S. addressees4 6.4 5.6 5.8 4.0 3.7 3.9 4.2 5.1 5.5 7.7 5.8 6.1 10 Real estate 698.9 705.6 713.0 720.1 727.7 735.8 742.6 749.2 756.4 759.6 768.1 774.4 1 1 1 2 I S n e d cu iv r i i d t u y al 3 3 6 9 1 . .6 9 r 3 3 63 8 . . 5 4 ' 3 4 6 0 3. . 8 6 3 4 6 0 5 . . 1 8 3 3 6 9 7 . . 5o r 3 3 7 9 0. . 3 7 ' 3 4 7 1 2 . . 2 6 3 4 7 1 4 . . 5 6 3 33 7 99 5 .. . 66 9 3 33 7 99 7 .. . 22 9 3 33 7 99 8 .. . 77 9 3 33 7 77 9 .. . 77 2 13 Nonbank financial institutions 29.6 29.3 30.5 31.3 31.5 31.8 32.7 33.3 32.7 32.3 33.0 34.1 1144 Agricultural 29.7 29.9 30.0 30.0 29.9 29.6 29.6 29.9 3300..33 3300..99 3311..00 3311..22 15 State and political subdivisions 43.3 43.1 42.8 42.5 42.2 41.7 41.3 40.8 40.1 38.6 38.9 38.4 16 Foreign banks 7.3 8.0 7.9 7.9 8.1 7.5 8.5 8.0 8.6 7.9 7.8 8.4 17 Foreign official institutions 4.8' 4.7' 4.4' 4.4' 4.1' 4.2' 3.9 3.6 3.7 3.3 3.1 3.0 18 Lease financing receivables .... 30.0 30.2 30.2 30.7 31.0 31.3 31.7 31.6 31.4 31.6 31.6 31.8 19 All other loans 43.5' 43.2' 44.8' 47.6' 51.0' 48.0' 46.4 46.4 46.5 42.9 41.5 43.6 Not seasonally adjusted 20 Total loans and securities2 2,469.4 2,482.2 2,496.3 2,507.0 2,521.1 2,537.5 2,563.6 2,581.0 2,590.6 2,591.5 2,606.2 2,618.1 2212 U .S. government securities 370.4 371.6 371.3 372.1 376.1 377.2 387.3 394.9 395.6 404.1 416.7 420.4 2 i 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 1,9 1 1 8 1 7 . . 5 5 1,9 1 2 8 3 7 . . 5 1 1,9 1 3 8 8 6 . . 5 5 1,9 1 5 8 0 4. . 7 2 1,9 1 6 8 1 3 . . 2 8 1,9 1 7 8 7 3. . 3 0 1,9 1 9 8 4 1 . . 5 8 2,0 1 0 8 5 0 . . 6 5 2,0 1 1 8 3 1 . . 8 2 2,0 1 0 8 6 0 . . 7 7 2,0 1 0 7 9 9 . . 5 9 2,0 1 1 7 7 9 . . 9 7 24 Commercial and industrial ..... 625.9 630.6 629.6 631.9 633.4 633.7 639.3 643.1 642.8 637.5 663388..55 644.4 25 Bankers acceptances held3... 8.1 8.1 8.0 7.6 8.1 8.4 8.9 8.2 77..77 77..55 88..11 88..22 26 Other commercial and industrial 617.9 622.5 621.6 624.3 625.3 625.3 630.4 634.9 635.1 630.0 630.4 636.2 2277 U.S. addressees4 612.5 616.9 616.0 618.6 619.8 619.8 624.7 629.4 629.8 625.0 625.7 631.6 28 Non-U.S. addressees 5.4 5.6 5.6 5.7 5.5 5.5 5.6 5.5 5.3 5.0 4.8 4.6 29 Real estate 697.2 704.6 712.9 720.7 729.2 737.8 743.9 750.9 757.1 759.7 765.5 771.7 30 Individual 359.0 361.2 362.1 364.3 367.7 372.1 373.7 376.0 380.3 381.5 378.1 376.0 31 Security 42.5' 39.0 42^ 40.2 38.4' 38.8' 40.1 40.3 3388..66 3377..55 3399..22 3388..66 32 Nonbank financial institutions 29.5 29.2 30.8 31.4 31.3 31.4 32.4 33.6 33.8 33.0 32.6 33.3 33 Agricultural 28.8 29.5 30.3 30.7 30.7 30.5 30.4 30.2 3300..22 3300..33 3300..11 3300..11 34 State and political ii> subdivisions 43.3 43.0 42.6 42.1 41.9 41.6 41.2 40.6 39.7 39.5 39.3 38.6 Foreign banks 7.0 7.9 8.1 8.0 8.1 7.8 8.8 8.1 8.4 8.0 7.7 7.9 36 Foreign official institutions 4.8' 4.7' 4.4' 4.4' 4.1' 4.2' 3.9 3.6 3.7 3.3 3.1 3.0 37 Lease financing receivables .... 30.1 30.2 30.2 30.4 30.9 31.2' 31.6 31.6 31.5 32.0 31.8 31.7 38 All other loans 43.4' 43.6' 44.7' 46.1' 45.6' 47.8' 49.2 47.5 47.7 44.4 43.6 42.5 1. Data have been revised because of benchmarking and seasonal adjustment 2. Excludes loans to commercial banks in the United States, revisions beginning January 1973. These data also appear in the Board's G.7 (407) 3. Includes nonfinancial commercial paper held, release. For address, see inside front cover. 4. United States includes the 50 states and the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1989 1990 SSoouurrccee Apr. May June July Aug. Sept." Oct." Nov." Dec." Jan." Feb." Mar. Seasonally adjusted 1 Total nondeposit funds 210.7r 217.0" 235.8" 238.8" 238.6" 246.2 253.5 255.0 255.4 256.0 265.0 268.1 2 Net balances due to related foreign offices3 3.9" 1.3" 8.2" 11.4" 9.7" 11.1 10.2 8.6 7.4 10.9 14.6 17.2 3 Borrowings from other than commercial banks in United States4 206.8" 215.7" 227.5 227.4" 228.9 235.0 243.3 246.4 248.0 245.1 250.4 250.9 4 Domestically chartered banks 167.5 173.8 185.4 182.8 183.9 189.1 195.3 196.8 198.5 194.4 198.4 195.0 5 Foreign-related banks 39.3" 41.9 42.2" 44.6 44.9 46.0 48.0 49.6 49.5 50.7 51.9 56.0 Not seasonally adjusted 6 Total nondeposit funds 212.5" 224.8" 239.8" 234.4" 238.1" 242.8 248.8 253.9 248.9 252.5 268.1 273.9 7 Net balances due to related foreign offices3 1.5" 3.3" 8.9" 9.2" 10.1" 11.7 9.6 9.7 9.6 10.5 14.2 16.0 8 Domestically chartered banks -22.8 -21.9 -18.3 -16.4 -15.5 -14.3 -15.0 -15.5 -19.3 -14.5 -11.1 -11.5 9 Foreign-related banks 24.3" 25.2" 27.2" 25.6" 25.6" 26.0 24.6 25.2 28.9 25.0 25.3 27.5 10 Borrowings from other than commercial banks in United States4 211.0 221.5" 230.9 225.2 228.0 231.1 239.1 244.2 239.2 242.0 253.9 257.8 11 Domestically chartered banks 171.0 178.9 187.0 180.2 183.5 186.1 192.3 197.0 192.2 190.5 200.4 200.7 12 Federal funds and security RP borrowings 166.5 174.8 183.2 177.2 180.5 183.1 189.3 194.6 189.6 187.9 196.6 196.2 13 Other 4.5 4.0 3.8 3.1 3.0 3.0 3.0 2.4 2.5 2.7 3.7 4.5 14 Foreign-related banks 40.0 42.6" 44.0" 45.0" 44.5 45.0 46.8 47.2 47.1 51.5 53.5 57.1 MEMO Gross large time deposits7 15 Seasonally adjusted 452.3 457.0 460.0 463.4 462.0 460.0 461.4 464.0 464.3 462.7 460.6 457.3 16 Not seasonally adjusted 452.3 457.4 459.4 461.1 462.6 461.5 462.6 464.4 462.7 460.4 460.3 460.2 U.S. Treasury demand balances at commercial banks8 17 Seasonally adjusted 21.3 25.5 25.7 22.4 22.3 22.8 21.5 20.4 21.1 20.2 17.8 19.2 18 Not seasonally adjusted 20.2 34.3 26.2 23.0 15.8 24.9 20.6 14.7 19.6 23.2 22.0 16.7 1. Data have been revised because of benchmarking and seasonal adjustment 4. Other borrowings are borrowings through any instrument, such as a revisions beginning January 1973. Commercial banks are those in the 50 states and promissory note or due bill, given for the purpose of borrowing money for the the District of Columbia with national or state charters plus agencies and branches banking business. This includes borrowings from Federal Reserve Banks and of foreign banks, New York investment companies majority owned by foreign from foreign banks, term federal funds, loan RPs, and sales of participations in banks, and Edge Act corporations owned by domestically chartered and foreign pooled loans. banks. 5. Based on daily average data reported weekly by approximately 120 large These data also appear in the Board's G.10 (411) release. For address, see banks and quarterly or annual data reported by other banks. inside front cover. 6. Figures are partly daily averages and partly averages of Wednesday data. 2. Includes federal funds, RPs, and other borrowing from nonbanks and net 7. Time deposits in denominations of $100,000 or more. Estimated averages of balances due to related foreign offices. daily data. 3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and 8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at com- U.S. branches and agencies of foreign banks with related foreign offices plus net mercial banks. Averages of daily data. positions with own IBFs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • June 1990 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series1 Billions of dollars 1989 1990 AAccccoouunntt May June July Aug. Sept. Oct/ Nov/ Dec/ Jan/ Feb/ Mar. ALL COMMERCIAL BANKING INSTITUTIONS2 1 Loans and securities 2,661.2 2,664.8 2,679.0 2,694.2 2,700.5 2,734.8 2,771.2 2,779.0 2,789.0 2,797.6 2,806.9 2 Investment securities 539.7 541.0 538.2 542.8 541.4 544.7 548.3 549.0 561.2 568.0 573.5 3 U.S. government securities 357.5 360.9 359.6 364.7 365.1 370.0 374.4 374.1 387.5 395.3 401.8 4 Other 182.2 180.0 178.6 178.1 176.3 174.7 173.9 174.9 173.8 172.7 171.7 5 Trading account assets 19.2 18.2 19.8 18.7 18.3 26.6 27.6 23.4 31.9 30.4 26.0 6 Total loans 2,102.3 2,105.6 2,120.9 2,132.7 2,140.8 2,163.6 2,195.3 2,206.5 2,195.8 2,199.2 2,207.4 7 Interbank loans 169.4 163.9 168.6 170.4 165.4 171.8 187.6 190.5 189.0 187.3 189.7 8 Loans excluding interbank 1,932.9 1,941.8 1,952.4 1,962.3 1,975.3 1,991.8 2,007.7 2,016.0 2,006.8 2,011.9 2,017.7 9 Commercial and industrial 631.1 628.6 636.6 632.4 632.1 638.9 643.0 644.3 636.4 640.6 643.8 10 Real estate 706.7 716.2 722.4 732.6 739.6 745.0 753.6 758.3 761.3 767.2 774.3 11 Individual 361.4 363.1 364.9 369.6 373.8 374.3 376.8 382.4 381.4 378.0 374.7 12 All other 233.8 233.8 228.4 227.8 229.9 233.6 234.2 231.1 227.6 226.2 224.9 13 Total cash assets 245.8 212.2 210.5 210.6 218.5 212.0 234.2 258.0 222.0 228.5 217.0 14 Reserves with Federal Reserve Banks. 27.8 28.0 30.6 28.8 31.8 28.5 38.7 42.8 24.5 29.3 31.8 15 Cash in vault 27.8 27.5 27.4 28.4 27.9 27.8 30.7 31.5 28.0 27.9 27.8 16 Cash items in process of collection ... 107.8 78.8 75.4 77.5 82.6 77.5 84.2 98.9 89.8 91.5 80.0 17 Demand balances at U.S. depository institutions 33.9 28.7 28.1 29.1 28.5 28.3 28.5 32.1 29.6 31.0 27.5 18 Other cash assets 48.5 49.2 49.1 46.9 47.6 49.9 52.2 52.7 50.1 48.9 49.8 19 Other assets 218.6 208.6 213.4 209.8 214.1 210.3 207.1 212.7 219.3 214.0 209.9 20 Total assets/total liabilities and capital.... 3,125.5 3,085.6 3,102.9 3,114.6 3,133.1 3,157.2 3,212.5 3,249.6 3,230.3 3,240.1 3,233.7 21 Deposits 2,185.8 2,140.9 2,154.2 2,169.0 2,177.0 2,196.0 2,223.2 2,267.6 2,243.3 2,257.8 2,246.6 22 Transaction deposits 626.7 578.5 577.4 581.4 586.5 585.8 600.4 641.5 611.3 615.9 593.9 23 Savings deposits 508.5 505.7 512.0 516.9 518.6 525.6 535.6 538.2 540.5 545.8 551.1 24 Time deposits 1,050.5 1,056.7 1,064.9 1,070.7 1,072.0 1,084.6 1,087.2 1,087.8 1,091.5 1,096.1 1,101.6 25 Borrowings 515.0 516.7 513.8 507.6 519.8 529.7 546.0 534.3 556.1 546.0 548.3 26 Other liabilities 218.5 219.5 226.3 227.4 226.0 225.2 236.0 239.8 223.8 227.4 228.1 27 Residual (assets less liabilities) 206.2 208.5 208.7 210.6 210.3 206.3 207.4 208.0 207.1 208.9 210.7 MEMO 28 U.S. government securities (including trading account) 370.7 373.1 372.8 376.9 377.2 389.6 394.8 390.7 412.6 418.6 419.5 29 Other securities (including trading account) 188.2 186.1 185.2 184.6 182.5 181.7 181.1 181.8 180.6 179.7 180.0 DOMESTICALLY CHARTERED COMMERCIAL BANKS3 30 Loans and securities 2,445.6 2,440.3 2,452.5 2,467.5 2,477.6 2,511.0 2,531.2 2,540.4 2,552.7 2,559.7 2,562.4 31 Investment securities 515.4 517.3 514.7 519.9 519.1 521.3 522.6 523.3 534.2 540.6 544.6 32 U.S. government securities 345.9 349.8 348.6 354.4 355.4 359.4 362.6 363.3 374.7 382.1 387.4 33 Other 169.5 167.5 166.1 165.5 163.7 161.9 160.0 160.1 159.5 158.5 157.2 34 Trading account assets 19.2 18.2 19.8 18.7 18.3 26.6 27.6 23.4 31.9 30.4 26.0 35 Total loans 1,911.1 1,904.9 1,918.0 1,928.8 1,940.2 1,963.2 1,981.0 1,993.7 1,986.5 1,988.7 1,991.7 36 Interbank loans 137.6 123.8 130.5 132.3 130.7 140.7 148.4 152.8 151.4 149.8 148.6 37 Loans excluding interbank 1,773.5 1,781.1 1,787.5 1,796.5 1,809.5 1,822.5 1,832.5 1,840.9 1,835.1 1,838.9 1,843.1 38 Commercial and industrial 515.3 511.3 516.0 512.4 511.3 515.7 516.9 516.9 513.4 517.7 518.9 39 Real estate 682.0 691.5 696.8 706.2 713.0 718.0 725.0 729.7 731.6 736.5 743.1 40 Individual 361.4 363.1 364.9 369.6 373.8 374.3 376.8 382.4 381.4 378.0 374.7 41 All other 214.8 215.2 209.9 208.3 211.4 214.4 213.9 211.9 208.7 206.8 206.4 42 Total cash assets 223.3 188.7 187.3 188.9 194.9 188.7 206.7 231.7 198.2 203.1 191.1 43 Reserves with Federal Reserve Banks. 26.7 26.6 29.6 27.0 29.5 26.7 37.9 41.7 22.7 27.5 29.8 44 Cash in vault 27.8 27.5 27.3 28.4 27.9 27.8 30.6 31.5 28.0 27.8 27.8 45 Cash items in process of collection ... 106.8 77.9 74.5 76.6 81.3 76.3 82.3 97.5 88.3 90.2 78.5 46 Demand balances at U.S. depository institutions 31.9 26.7 26.4 27.4 26.8 26.4 26.6 30.2 27.7 28.9 25.9 47 Other cash assets 30.1 30.0 29.5 29.5 29.3 31.6 29.3 30.8 31.4 28.6 29.1 48 Other assets 141.8 139.7 136.5 136.2 140.1 131.0 137.1 140.9 143.2 139.6 136.4 49 Total assets/liabilities and capital 2,810.8 2,768.7 2,776.2 2,792.6 2,812.5 2,830.8 2,875.0 2,913.0 2,894.0 2,902.4 2,889.9 50 Deposits 2,105.9 2,061.2 2,073.2 2,088.9 2,095.8 2,113.8 2,140.8 2,184.3 2,160.7 2,175.6 2,165.0 51 Transaction deposits 616.9 569.1 568.0 572.6 576.6 576.1 590.5 631.3 600.8 605.7 584.2 52 Savings deposits 505.9 503.0 509.3 514.3 515.8 523.0 532.8 535.4 537.7 542.9 548.2 53 Time deposits 983.0 989.1 995.9 1,002.0 1,003.4 1,014.7 1,017.5 1,017.7 1,022.2 1,027.0 1,032.6 54 Borrowings 384.6 389.2 381.8 376.7 392.4 395.1 406.8 400.6 407.3 397.3 395.9 55 Other liabilities 117.6 113.5 116.2 120.0 117.5 119.2 123.6 123.7 122.5 124.2 122.0 56 Residual (assets less liabilities) 202.6 204.9 205.1 207.0 206.7 202.7 203.7 204.4 203.4 205.3 207.1 MEMO 57 Real estate loans, revolving 44.5 45.2 45.5 46.8 47.6 48.0 48.6 49.3 50.4 50.8 51.2 58 Real estate loans, other 637.6 646.3 651.2 659.4 665.4 670.1 676.4 680.4 681.1 685.7 691.9 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 1990 AAccccoouunntt Jan. 31r Feb. T Feb. 14r Feb. 21' Feb. 28' Mar. 7 Mar. 14 Mar. 21 Mar. 28 1 Cash and balances due from depository institutions 110,337 102,860 107,724 119,839 113,304 109,208 114,587 107,378 108,138 2 Total loans, leases, and securities, net 1,284,339 1,282,900 1,285,992 1,288,770 1,286,102 1,290,923 1,283,938 1,288,571 1,280,763 3 U.S. Treasury and government agency 173,950 176,085 175,744 175,760 176,133 177,416 173,839 172,400 169,961 4 Trading account 25,135 24,643 23,500 23,440 23,349 24,881 21,840 20,487 17,708 5 Investment account 148,814 151,443 152,243 152,320 152,785 152,535 151,998 151,912 152,253 6 Mortgage-backed securities 76,586 78,102 77,821 77,026 77,768 77,952 77,890 78,879 78,978 All other maturing in 7 One year or less 21,790 22,702 23,466 23,244 23,557 23,678 23,574 23,100 2233,,118866 8 Over one through five years 34,382 34,409 34,471 35,004 34,386 33,704 33,264 32,740 32,719 9 Over five years 16,057 16,229 16,485 17,046 17,072 17,202 17,270 17,192 17,369 10 Other securities 67,004 66,318 66,265 66,436 66,333 65,851 65,890 65,575 65,156 11 Trading account 800 681 653 589 680 679 726 722 840 1? Investment account 66,204 65,637 65,612 65,847 65,653 65,172 65,163 64,853 64,316 13 States and political subdivisions, by maturity 37,120 37,032 36,990 36,859 36,747 36,427 36,333 36,177 35,541 14 One year or less 4,671 4,778 4,747 4,723 4,761 4,754 4,758 4,728 4,413 IS Over one year 32,449 32,253 32,243 32,136 31,987 31,673 31,575 31,449 31,129 16 Other bonds, corporate stocks, and securities 29,085 28,606 28,622 28,988 28,906 28,745 28,830 28,676 28,775 17 Other trading account assets 6,011 6,777 6,478 6,164 6,350 6,550 7,228 7,462 7,483 18 Federal funds sold3 71,328 69,807 71,047 71,072 69,664 71,199 70,486 71,656 69,745 19 To commercial banks 50,288 49,891 49,631 51,474 50,079 50,534 49,576 50,994 49,846 ?0 To nonbank brokers and dealers in securities 13,679 13,542 14,829 13,765 13,297 14,651 13,924 14,087 14,395 ?1 To others 7,361 6,374 6,587 5,833 6,288 6,015 6,985 6,575 5,504 7? Other loans and leases, gross 1,008,844 1,006,890 1,009,479 1,012,374 1,010,532 1,012,896 1,009,498 1,014,523 1,010,909 73 Other loans, gross 982,190 980,311 982,858 985,799 983,992 986,374 983,014 987,982 984,260 74 Commercial and industrial 318,453 319,582 318,901 319,610 322,147 323,288 322,484 323,935 322,654 Bankers acceptances and commercial paper 1,431 1,508 1,495 1,493 1,536 1,753 1,614 1,566 1,629 76 All other 317,021 318,074 317,406 318,116 320,612 321,535 320,870 322,369 321,025 77 U.S. addressees 315,448 316,496 316,028 316,681 319,182 320,125 319,446 320,806 319,655 28 Non-U.S. addressees 1,574 1,578 1,377 1,435 1,430 1,411 1,424 1,563 1,370 79 Real estate loans 359,403 361,120 362,254 362,586 362,737 363,338 364,972 365,424 365,895 30 Revolving, home equity 28,210 28,244 28,346 28,372 28,392 28,433 28,531 28,596 28,457 31 All other 331,193 332,876 333,907 334,214 334,344 334,906 336,442 336,829 337,438 37 To individuals for personal expenditures 180,323 178,234 178,232 178,430 177,450 176,768 176,730 176,358 174,645 33 To depository and financial institutions 52,941 52,624 51,564 52,016 50,548 53,410 52,591 53,172 50,961 34 Commercial banks in the United States 27,133 26,304 25,582 25,395 24,523 26,740 26,030 26,678 24,824 35 Banks in foreign countries 4,087 4,288 4,240 4,831 3,867 3,985 4,151 4,391 4,339 36 Nonbank depository and other financial institutions .. 21,720 22,031 21,742 21,791 22,159 22,685 22,409 22,104 21,797 37 For purchasing and carrying securities 16,041 14,704 17,909 18,492 16,465 16,687 14,037 16,079 16,914 38 To finance agricultural production 5,515 5,476 5,491 5,447 5,439 5,448 5,487 5,462 5,445 39 To states and political subdivisions 24,757 24,772 24,672 24,906 24,582 24,416 24,321 24,297 24,270 40 To foreign governments and official institutions 1,521 1,372 1,393 1,566 1,470 1,193 1,179 1,224 1,487 41 All other 23,236 22,427 22,442 22,745 23,153 21,824 21,212 22,030 21,989 4? Lease financing receivables 26,655 26,579 26,621 26,575 26,540 26,522 26,484 26,540 26,650 43 LESS; Unearned income 4,849 4,847 4,855 4,851 4,811 4,792 4,804 4,809 4,796 44 Loan and lease reserve 37,948 38,131 38,166 38,185 38,100 38,197 38,199 38,237 37,696 45 Other loans and leases, net 966,047 963,912 966,458 969,338 967,622 969,906 966,495 971,477 968,418 46 All other assets 138,487 136,774 135,398 132,314 135,497 136,392 135,693 135,752 132,515 47 Total assets 1,533,164 1,522,533 1,529,115 1,540,924 1,534,903 1,536,523 1,534,218 1,531,700 1,521,416 48 Demand deposits 232,117 219,805 225,578 234,643 233,273 221,050 227,680 216,028 220,035 49 Individuals, partnerships, and corporations 184,962 176,646 182,564 183,418 185,750 177,153 182,781 173,236 176,882 50 States and political subdivisions 7,160 6,016 6,291 6,350 6,935 5,225 5,398 6,169 5,661 51 U.S. government 2,246 3,495 3,185 3,815 2,987 3,663 3,776 1,557 2,430 57. Depository institutions in the United States 21,208 18,981 19,362 24,386 22,352 20,553 20,784 19,391 19,570 53 Banks in foreign countries 6,021 5,647 5,355 7,187 5,679 5,520 5,883 6,300 6,349 54 Foreign governments and official institutions 780 643 654 822 669 614 870 921 646 55 Certified and officers' checks 9,739 8,377 8,166 8,665 8,902 8,322 8,187 8,453 8,496 56 Transaction balances other than demand deposits 80,298 81,684 79,712 80,104 81,235 83,096 81,750 81,077 80,619 57 Nontransaction balances 719,887 725,049 726,098 726,054 724,937 731,453 729,991 730,573 730,971 58 Individuals, partnerships, and corporations 680,905 685,583 686,442 686,647 685,518 692,361 690,716 691,297 691,572 59 States and political subdivisions 30,154 30,784 30,944 30,771 30,894 30,602 30,732 30,648 30,733 60 U.S. government 850 842 851 855 868 869 861 862 867 61 Depository institutions in the United States 7,393 7,262 7,270 7,200 7,079 7,059 7,123 7,143 7,181 67 Foreign governments, official institutions, and banks .. 584 577 590 582 577 562 559 622 617 63 Liabilities for borrowed money 307,066 306,964 303,460 307,934 299,908 304,396 302,600 308,188 297,385 64 Borrowings from Federal Reserve Banks 590 1,641 925 3,755 1,613 1,673 1,844 3,031 1,741 65 Treasury tax-and-loan notes 25,565 14,791 15,349 9,404 10,569 7,149 3,512 13,724 10,629 66 All other liabilities for borrowed money 280,910 290,531 287,186 294,774 287,726 295,574 297,244 291,432 285,015 67 Other liabilities and subordinated notes and debentures .. 93,707 88,958 93,676 91,785 94,576 94,925 90,317 94,211 90,562 68 Total liabilities 1,433,075 1,422,459 1,428,524 1,440,520 1,433,930 1,434,921 1,432,339 1,430,077 1,419,572 69 Residual (total assets minus total liabilities)6 100,089 100,074 100,590 100,404 100,973 101,602 101,878 101,623 101,844 MEMO 70 Total loans and leases (gross) and investments adjusted . 1,249,716 1,249,682 1,253,799 1,254,937 1,254,411 1,256,638 1,251,333 1,253,945 1,248,585 71 Total loans and leases (gross) adjusted 1,002,751 1,000,501 1,005,312 1,006,577 1,005,595 1,006,822 1,004,376 1,008,508 1,005,984 77 Time deposits in amounts of $100,000 or more 215,881 217,110 217,571 216,759 215,330 219,372 216,352 216,797 216,830 73 U.S. Treasury securities maturing in one year or less 21,729 23,112 23,555 22,404 23,077 23,393 22,750 21,981 21,788 74 Loans sold outright to affiliates—total 540 545 545 546 552 561 558 559 553 75 Commercial and industrial 242 243 245 249 254 265 260 261 248 76 Other 298 302 300 297 298 296 298 298 304 77 Nontransaction savings deposits (including MMDAs) 273,728 276,180 276,361 277,042 276,990 278,942 279,988 279,684 279,604 1. Beginning Jan. 6, 1988, the "Large bank" reporting group was revised repurchase; for information on these liabilities at banks with assets of $1 billion somewhat, eliminating some former reporters with less than $2 billion of assets or more on Dec. 31, 1977, see table 1.13. and adding some new reporters with assets greater than $3 billion. 6. This is not a measure of equity capital for use in capital-adequacy analysis or 2. Includes U.S. government-issued or guaranteed certificates of participation for other analytic uses. in pools of residential mortgages. 7. Exclusive of loans and federal funds transactions with domestic commercial 3. Includes securities purchased under agreements to resell. banks. 4. Includes allocated transfer risk reserve. 8. Loans sold are those sold outright to a bank's own foreign branches, 5. Includes federal funds purchased and securities sold under agreements to nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • June 1990 1.28 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY1 Millions of dollars, Wednesday figures 1990 Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 1 Cash balances due from depository institutions 21,895 21,537 21,037 23,559 20,672 21,607 22,343 23,602 21,300 2 Total loans, leases, and securities, net2 215,737 213,386 217,250 217,966 214,702 216,870 215,247 216,737 215,049 Securities 3 U.S. Treasury and government agency3 0 0 0 0 0 0 0 0 0 4 Trading account 0 0 0 0 0 0 0 0 0 5 Investment account 19,307 19,274 19,487 19,155 19,568 19,602 19,574 19,623 19,756 6 Mortgage-backed securities4 11,138 11,117 11,286 11,355 11,886 11,936 11,933 12,012 12,146 All other maturing in 7 One year or less 2,256 2,283 2,343 1,934 1,860 1,787 1,764 1,724 1,824 8 Over one through five years 3,658 3,572 3,543 3,592 3,542 3,542 3,553 3,556 3,458 9 Over five years 2,254 2,302 2,315 2,273 2,279 2,337 2,323 2,330 2,329 10 Other securities3 0 0 0 0 0 0 0 0 0 11 Trading account3 0 0 0 0 0 0 0 0 0 12 Investment account 14,847 14,795 14,695 15,019 14,832 14,729 14,649 14,527 14,503 13 States and political subdivisions, by maturity 7,749 7,727 7,698 7,650 7,616 7,561 7,475 7,384 7,313 14 One year or less 1,076 1,081 1,059 1,055 1,052 1,049 1,058 1,057 1,036 15 Over one year 6,673 6,647 6,639 6,596 6,564 6,512 6,417 6,327 6,278 16 Other bonds, corporate stocks, and securities 7,098 7,068 6,997 7,368 7,216 7,168 7,174 7,142 7,190 17 Other trading account assets 0 0 0 0 0 0 0 0 0 Loans and leases 18 Federal funds sold5 18,516 17,589 18,732 18,455 17,848 18,600 19,701 18,548 17,689 19 To commercial banks 10,403 9,846 9,658 11,373 10,376 10,232 11,164 10,928 9,982 20 To nonbank brokers and dealers in securities 3,539 3,898 4,764 3,414 3,425 4,298 3,638 3,237 4,302 21 To others 4,574 3,845 4,310 3,668 4,047 4,069 4,898 4,383 3,405 22 Other loans and leases, gross 182,285 181,033 183,650 184,665 181,713 183,163 180,558 183,286 182,251 23 Other loans, gross 176,611 175,368 178,011 179,086 176,149 177,602 175,012 177,721 176,698 24 Commercial and industrial 57,485r 57,961" 58,266" 58,132" 58,878" 59,025 58,570 58,390 57,548 25 Bankers acceptances and commercial paper 93 93 90 104 98 99 115 108 102 26 All other 57,392" 57,869" 58,176" 58,028" 58,780" 58,926 58,455 58,282 57,446 27 U.S. addressees 56,820" 57,299" 57,626" 57,439" 58,184" 58,351 57,888 57,573 56,856 28 Non-U.S. addressees 572 570 550 589 596 575 567 709 590 29 Real estate loans 62,006 62,052 62,333 62,177 61,854 61,949 62,195 62,344 62,380 30 Revolving, home equity 3,969 3,966 3,974 3,976 3,978 3,979 3,985 3,993 3,9% 31 Allother 58,037 58,086 58,358 58,201 57,875 57,971 58,210 58,350 58,384 32 To individuals for personal expenditures 20,121 20,076 20,098 20,146 20,060 19,994 19,966 19,942 19,939 33 To depository and financial institutions 20,074" 19,779" 19,199" 19,957" 18,714" 20,457 19,908 20,950 19,590 34 Commercial banks in the United States 9,665" 8,940" 8,485" 8,517" 7,941" 9,602 8,904 9,901 8,768 35 Banks in foreign countries 2,847 3,154 3,090 3,589 2,741 2,782 3,067 3,336 3,314 36 Nonbank depository and other financial institutions 7,562 7,685 7,623 7,851 8,032 8,072 7,937 7,713 7,509 37 For purchasing and carrying securities 5,988 5,068 7,494 7,656 5,768 6,150 4,629 5,750 6,454 38 To finance agricultural production 105 108 114 107 114 106 109 102 117 39 To states and political subdivisions 5,316 5,324 5,332 5,577 5,316 5,292 5,294 5,286 5,276 40 To foreign governments and official institutions 326 259 288 468 486 245 251 283 235 41 Allother 5,189 4,740 4,886 4,865 4,958 4,383 4,090 4,675 5,159 42 Lease financing receivables 5,674 5,665 5,639 5,579 5,564 5,561 5,546 5,565 5,552 43 LESS: Unearned income 1,820 1,821 1,825 1,838 1,827 1,822 1,824 1,836 1,838 44 Loan and lease reserve 17,397 17,484 17,489 17,489 17,431 17,401 17,410 17,411 17,313 45 Other loans and leases, net6 163,068 161,728 164,335 165,337 162,455 163,940 161,323 164,039 163,100 46 All other assets 63,950 62,525 62,415 61,492 64,191 63,116 62,654 61,336 57,317 47 Total assets 301,583 297,449 300,702 303,017 299,566 301,593 300,245 301,675 293,666 Deposits 48 Demand deposits 51,287 48,206 49,689 53,008 49,208 45,162 48,448 47,617 49,125 49 Individuals, partnerships, and corporations 35,897 35,057 36,144 36,315 35,072 32,467 34,055 33,123 35,307 50 States and political subdivisions 773 668 580 718 613 667 521 638 520 51 U.S. government 278 651 569 771 450 685 701 199 383 52 Depository institutions in the United States 5,324 3,738 4,615 5,839 5,761 4,111 5,082 4,587 4,375 53 Banks in foreign countries 4,664 4,468 4,266 5,438 4,218 4,060 4,620 5,128 5,113 54 Foreign governments and official institutions 659 508 480 689 504 477 725 801 503 55 Certified and officers' checks 3,692 3,115 3,035 3,238 2,590 2,694 2,743 3,139 2,924 56 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers) 8,760 8,799 8,569 8,572 8,661 8,821 8,723 8,708 8,715 57 Nontransaction balances 116,676 116,706 116,821 117,382 117,022 120,440 117,499 116,946 116,641 58 Individuals, partnerships, and corporations 108,165 108,198 108,332 108,884 108,522 111,996 109,088 108,421 108,126 59 States and political subdivisions 6,540 6,606 6,604 6,618 6,643 6,577 6,549 6,560 6,548 60 U.S. government 28 27 28 30 39 40 38 37 38 61 Depository institutions in the United States 1,723 1,668 1,647 1,646 1,608 1,619 1,617 1,624 1,625 62 Foreign governments, official institutions, and banks ... 220 207 211 203 209 208 207 305 304 63 Liabilities for borrowed money 67,277 71,381 67,862 67,504 65,667 65,967 70,375 67,936 63,134 64 Borrowings from Federal Reserve Banks 0 921 0 2,465 0 0 0 1,000 0 65 Treasury tax-and-loan notes 6,721 3,621 3,639 1,910 2,237 1,423 631 3,009 2,231 66 All other liabilities for borrowed money8 60,556 66,839 64,223 63,130 63,431 64,543 69,744 63,927 60,904 67 Other liabilities and subordinated notes and debentures ... 33,717 28,384 33,530 32,536 34,973 36,890 30,887 36,146 31,714 68 Total liabilities 277,717 273,475 276,471 279,002 275,531 277,279 275,932 277,354 269,329 69 Residual (total assets minus total liabilities)9 23,866 23,973 24,230 24,015 24,034 24,314 24,312 24,321 24,337 MEMO 70 Total loans and leases (gross) and investments adjusted2'10 214,887' 213,905" 218,422" 217,404" 215,643" 216,258 214,414 215,155 215,450 71 Total loans and leases (gross) adjusted10 180,733' 179,836" 184,239" 183,231" 181,243" . 181,928 180,191 181,005 181,190 72 Time deposits in amounts of $100,000 or more 41,281 41,142 41,422 41,357 41,027 44,305 40,821 40,636 40,450 73 U.S. Treasury securities maturing in one year or less 3,391 3,659 3,736 3,403 3,224 3,077 2,822 2,403 2,373 1. These data also appear in the Board's H.4.2 (504) release. For address, see 7. Includes trading account securities. inside front cover. 8. Includes federal funds purchased and securities sold under agreements to 2. Excludes trading account securities. repurchase. 3. Not available due to confidentiality. 9. Not a measure of equity capital for use in capital adequacy analysis or for 4. Includes U.S. government-issued or guaranteed certificates of participation other analytic uses. in pools of residential mortgages. 10. Exclusive of loans and federal funds transactions with domestic commer- Digitized for FRA5S. EInRcl udes securities purchased under agreements to resell. cial banks. 6. Includes 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 1990 AAccccoouunntt Jan. 31r Feb. T Feb. 14r Feb. 2V Feb. 28r Mar. 7 Mar. 14 Mar. 21 Mar. 28 1 Cash and due from depository institutions ... 12,637 13,280 12,785 13,347 13,155 13,317 12,756 13,815 13,501 2 Total loans and securities 144,184 141,969 143,099 146,945 145,879 149,203 150,565 150,832 150,264 3 U.S. Treasury and government agency securities 9,828 9,202 9,409 9,882 10,152 10,336 10,671 11,070 10,915 4 Other securities 6,747 6,738 6,646 6,704 6,685 6,639 6,561 6,564 6,795 5 Federal funds sold 6,993 5,000 6,408 7,561 5,904 6,410 7,505 6,133 8,045 6 To commercial banks in the United States . 5,643 3,598 5,052 5,942 4,482 5,109 5,904 4,714 6,810 7 To others 1,350 1,402 1,356 1,619 1,422 1,301 1,601 1,419 1,235 8 Other loans, gross 120,616 121,029 120,636 122,798 123,138 125,818 125,828 127,065 124,509 9 Commercial and industrial 74,037 74,952 73,986 74,311 73,994 74,645 74,218 75,502 75,237 10 Bankers acceptances and commercial paper 1,983 2,348 2,210 2,246 2,183 2,336 2,307 2,153 1,944 11 All other 72,054 72,604 71,776 72,065 71,811 72,309 71,911 73,349 73,293 12 U.S. addressees 70,559 71,070 70,233 70,679 70,387 70,955 70,566 71,928 71,881 13 Non-U.S. addressees 1,495 1,534 1,543 1,386 1,424 1,354 1,345 1,421 1,412 14 Loans secured by real estate3 19,146 19,721 19,681 19,799 19,848 20,094 20,207 20,251 20,440 15 To financial institutions 23,910 23,382 23,975 24,917 25,963 27,455 28,438 28,158 25,382 16 Commercial banks in the United States.. 17,943 17,671 17,704 18,666 19,569 20,867 21,843 21,524 19,096 17 Banks in foreign countries 1,144 911 1,370 1,478 1,651 1,649 1,699 1,733 1,401 18 Nonbank financial institutions 4,823 4,800 4,901 4,773 4,743 4,939 4,896 4,901 4,885 19 To foreign governments and official institutions 254 266 246 245 247 243 266 235 228 20 For purchasing and carrying securities 1,585 1,452 1,439 2,176 1,601 1,724 1,398 1,609 1,812 21 All other3 1,684 1,256 1,309 1,350 1,485 1,657 1,301 1,310 1,410 22 Other assets (claims on nonrelated parties) .. 37,060 36,839 36,522 34,561 36,042 35,690 36,995 35,301 34,474 23 Net due from related institutions 14,031 12,657 14,776 11,715 14,128 12,689 11,703 12,345 14,727 24 Total assets 207,912 204,747 207,180 206,567 209,204 210,899 212,020 212,294 212,966 25 Deposits or credit balances due to other than directly related institutions 50,231 50,649 50,045 50,450 49,563 48,662 48,792 49,514 49,447 26 Transaction accounts and credit balances . 4,574 4,084 3,991 4,884 4,036 3,684 3,464 3,633 4,149 27 Individuals, partnerships, and corporations 3,246 2,865 2,947 3,554 2,750 2,464 2,545 2,491 2,760 28 Other 1,328 1,219 1,044 1,330 1,286 1,220 919 1,142 1,389 29 Nontransaction accounts 45,657 46,565 46,054 45,566 45,527 44,978 45,328 45,881 45,298 30 Individuals, partnerships, and corporations 38,841 39,153 39,171 38,766 38,577 38,189 38,461 38,319 38,328 31 Other 6,816 7,412 6,883 6,800 6,950 6,789 6,867 7,562 6,970 32 Borrowings from other than directly related institutions 96,669 92,386 95,035 91,557 96,665 100,642 99,596 98,113 99,358 33 Federal funds purchased6 44,140 40,800 43,831 41,805 47,187 48,879 45,783 45,422 47,825 34 From commercial banks in the United States 20,777 17,198 19,359 18,276 22,276 21,330 18,847 17,666 22,058 35 From others 23,363 23,602 24,472 23,529 24,911 27,549 26,936 27,756 25,767 36 Other liabilities for borrowed money 52,529 51,586 51,204 49,752 49,478 51,763 53,813 52,691 51,533 37 To commercial banks in the United States 33,849 32,665 31,954 31,107 30,569 32,843 32,759 33,347 31,310 38 To others 18,680 18,921 19,250 18,645 18,909 18,920 21,054 19,344 20,223 39 Other liabilities to nonrelated parties 37,221 36,298 36,049 34,412 36,510 34,845 36,059 34,565 33,567 40 Net due to related institutions 23,790 25,413 26,052 30,146 26,465 26,752 27,574 30,103 30,593 41 Total liabilities 207,912 204,747 207,180 206,567 209,204 210,899 212,020 212,294 212,966 MEMO 42 Total loans (gross) and securities adjusted .. 120,598 120,700 120,343 122,337 121,828 123,227 122,818 124,594 124,358 43 Total loans (gross) adjusted7 104,023 104,760 104,288 105,751 104,991 106,252 105,586 106,960 106,648 1. Effective Jan. 4, 1989, the reporting panel includes a new group of large U.S. separate component of Other loans, gross. Formerly, these loans were included in branches and agencies of foreign banks. Earlier data included 65 U.S. branches "All other", line 21. and agencies of foreign banks that included those branches and agencies with 4. Includes credit balances, demand deposits, and other checkable deposits. assets of $750 million or more on June 30, 1980, plus those branches and agencies 5. Includes savings deposits, money market deposit accounts, and time that had reached the $750 million asset level on Dec. 31, 1984. These data also deposits. appear in the Board's H.4.2 (504) release. For address, see inside front cover. 6. Includes securities sold under agreements to repurchase. 2. Includes securities purchased under agreements to resell. 7. Exclusive of loans to and federal funds sold to commercial banks in the 3. Effective Jan. 4, 1989, loans secured by real estate are being reported as a United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • June 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 1989 1990 11998844 11998855 11998866 11998877 11998888 DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. 1 All holders—Individuals, partnerships, and corporations 302.7 321.0 363.6 343.5 354.7 330.4 329.3 337.3 352.2 n.a. 2 Financial business 31.7 32.3 41.4 36.3 38.6 36.3 33.0 33.7 33.8 n.a. 3 Nonfinancial business 166.3 178.5 202.0 191.9 201.2 182.2 185.9 190.4 202.5 n.a. 4 Consumer 81.5 85.5 91.1 90.0 88.3 87.4 86.6 87.9 90.3 n.a. 5 Foreign 3.6 3.5 3.3 3.4 3.7 3.7 2.9 2.9 3.1 n.a. 6 Other 19.7 21.2 25.8 21.9 22.8 20.7 21.0 22.4 22.5 n.a. Weekly reporting banks 1989 1990 11998844 11998855 11998866 11998877 11998888 DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. 7 Ail holders—Individuals, partnerships, and corporations 157.1 168.6 195.1 183.8 198.3 181.9 182.2 186.6 196.7 183.6 8 Financial business 25.3 25.9 32.5 28.6 30.5 27.2 25.4 26.3 27.6 25.3 9 Nonfinancial business 87.1 94.5 106.4 100.0 108.7 98.6 99.8 101.6 108.8 100.0 10 Consumer 30.5 33.2 37.5 39.1 42.6 41.1 42.4 43.0 44.1 42.9 11 Foreign 3.4 3.1 3.3 3.3 3.6 3.3 2.9 2.8 3.0 2.8 12 Other 10.9 12.0 15.4 12.7 12.9 11.7 11.7 12.9 13.2 12.7 1. Figures include cash items in process of collection. Estimates of gross Historical data back to March 1985 have been revised to account for corrections deposits are based on reports supplied by a sample of commercial banks. Types of bank reporting errors. Historical data before March 1985 have not been revised, of depositors in each category are described in the June 1971 Bulletin, p. 466. and may contain reporting errors. Data for all commercial banks for March 1985 Figures may not add to totals because of rounding. were revised as follows (in billions of dollars): all holders, - .3; financial business, 2. Beginning in March 1984, these data reflect a change in the panel of weekly -.8; nonfinancial business, -.4; consumer, .9; foreign, .1; other, -.1. Data for reporting banks, and are not comparable to earlier data. Estimates in billions of weekly reporting banks for March 1985 were revised as follows (in billions of dollars for December 1983 based on the new weekly reporting panel are: financial dollars): all holders, -.1; financial business, -.7; nonfinancial business, -.5; business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other consumer, 1.1; foreign, .1; other, -.2. 9.5. 3. Beginning March 1988, these data reflect a change in the panel of weekly 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 1990 11998855 11998866 11998877 11998888 11998899 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. Sept. Oct. Nov. Dec. Jan. Feb. Commercial paper (seasonally adjusted unless noted otherwise) 1 AH issuers 298,779 329,991 358,056' 457,297'' 529,055r 511,222' 512,711' 521,634' 529,055' 533,137 540,148 Financial companies' Dealer-placed paper 2 Total 78,443 101,072 102,844' 160,094' 187,084'' 177,064' 177,194' 183,284' 187,084' 183,401 185,391 3 Bank-related (not seasonally adjusted) 1,602 2,265 1,428 1,248 n.a. n.a. n.a. n.a. n.a. n.a. n.a. Directly placed paper 4 Total 135,320 151,820 173,98c 194,537' 212,210'' 209,200' 211,454' 212,215' 212,210' 214,996 215,650 5 Bank-related (not seasonally adjusted)3 44,778 40,860 43,173 43,155 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 Nonfinancial companies 85,016 77,099 81,232 102,666' 129,761' 124,958' 124,063' 126,135' 129,761' 134,740 139,107 Bankers dollar acceptances (not seasonally adjusted)6 7 Total 68,413 64,974 70,565 66,631 62,972 63,814 63,660 63,802 62,972 60,019 57,852 Holder 8 Accepting banks 11,197 13,423 10,943 9,086 9,433 9,526 10,811 9,923 9,433 9,954 10,351 9 Own bills 9,471 11,707 9,464 8,022 8,510 8,779 9,108 8,548 8,510 8,467 8,907 10 Bills bought 1,726 1,716 1,479 1,064 924 747 1,703 1,375 924 1,488 1,444 Federal Reserve Banks 11 Own account 0 0 0 0 0 0 0 0 0 0 0 12 Foreign correspondents.. 937 1,317 965 1,493 1,066 1,016 1,016 1,034 1,066 1,069 1,123 13 Others 56,279 50,234 58,658 56,052 52,473 53,370 51,833 52,846 52,473 48,996 46,379 Basis 14 Imports into United States . 15,147 14,670 16,483 14,984 15,651 16,101 16,157 15,691 15,651 15,100 14,522 15 Exports from United States 13,204 12,960 15,227 14,410 13,683 14,304 14,275 14,385 13,683 13,437 12,567 16 All other 40,062 37,344 38,855 37,237 33,638 33,409 33,228 33,726 33,638 n.a. n.a. 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 panel is revised every January and currently has 4. As reported by financial companies that place their paper directly with about 100 respondents. The current reporting group accounts for over 90 percent investors. of total acceptances activity. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per year Rate Period Av r e a r t a e g e Period Av r e a r t a e g e Period 7.75 1987 8.21 1988—Jan. ... 8.75 1989— July ... 8.00 1988 9.32 Feb. .. 8.51 8.25 1989 10.87 Mar. ,. 8.50 Sept. .. 8.75 Apr. .. 8.50 Oct. ... 9.25 1987— Jan. 7.50 May ... 8.84 9.00 Feb. 7.50 June .. 9.00 Dec. .. 8.75 Mar. 7.50 July ... 9.29 Apr. 7.75 Aug. .. 9.84 1990— 8.50 May 8.14 Sept. .. 10.00 Feb. .. 9.00 June 8.25 Oct. ... 10.00 9.50 July 8.25 Nov. .. 10.05 Apr. .. 10.00 Aug. 8.25 Dec. .. 10.50 10.50 Sept. 8.70 Oct. 9.07 1989—Jan. ... 10.50 11.00 Nov. 8.78 Feb. .. 10.93 11.50 Dec. 8.75 Mar. .. 11.50 11.00 Apr. .. 11.50 10.50 May ... 11.50 June .. 11.07 10.00 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 • June 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 1990 IInnssttrruummeenntt 11998877 11998888 11998899 Dec. Jan. Feb. Mar. Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 MONEY MARKET RATES 1 Federal funds1,2 6.66 7.57 9.21 8.45 8.23 8.24 8.28 8.27 8.28 8.27 8.27 8.26 2 Discount window borrowing ' ' 5.66 6.20 6.93 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Commercial paper ' 3 1-month 6.74 7.58 9.11 8.61 8.20 8.22 8.32 8.23 8.29 8.35 8.35 8.35 4 3-month 6.82 7.66 8.99 8.29 8.10 8.14 8.28 8.17 8.21 8.31 8.32 8.30 5 6-month , 6.85 7.68 8.80 7.93 7.96 8.04 8.23 8.07 8.12 8.29 8.29 8.27 Finance paper, directly placed 6 1-month 6.61 7.44 8.99 8.40 8.09 8.13 8.23 8.15 8.19 8.26 8.25 8.25 7 3-month 6.54 7.38 8.72 8.01 7.90 7.97 8.04 7.97 7.99 8.05 8.08 8.08 8 6-month 6.37 7.14 8.16 7.33 7.34 7.40 7.49 7.49 7.33 7.52 7.61 7.52 Bankers acceptances ,6 9 3-month 6.75 7.56 8.87 8.15 7.97 8.03 8.15 8.06 8.10 8.19 8.18 8.18 10 6-month 6.78 7.60 8.67 7.78 7.83 7.91 8.11 7.96 8.01 8.18 8.16 8.15 Certificates of deposit, secondary market7 11 1-month 6.75 7.59 9.11 8.65 8.17 8.19 8.30 8.22 8.26 8.34 8.32 8.31 12 3-month 6.87 7.73 9.09 8.32 8.16 8.22 8.35 8.25 8.29 8.42 8.38 8.35 13 6-month 7.01 7.91 9.08 8.12 8.17 8.26 8.48 8.29 8.36 8.57 8.55 8.52 14 Eurodollar deposits. 3-month 7.07 7.85 9.16 8.39 8.22 8.24 8.37 8.25 8.30 8.39 8.40 8.38 U.S. Treasury bills5 Secondary market9 15 3-month 5.78 6.67 8.11 7.63 7.64 7.74 7.90 7.76 7.91 7.96 7.93 7.85 16 6-month 6.03 6.91 8.03 7.42 7.55 7.70 7.85 7.72 7.83 7.88 7.87 7.84 17 1-year 6.33 7.13 7.92 7.21 7.38 7.55 7.76 7.58 7.76 7.81 7.76 7.75 Auction average 18 3-month 5.82 6.68 8.12 7.64 7.64 7.76 7.87 7.72 7.85 7.96 7.97 7.85 19 6-month 6.05 6.92 8.04 7.45 7.52 7.72 7.83 7.70 7.79 7.89 7.92 7.83 20 1-year 6.33 7.17 7.91 7.14 7.21 7.42 7.76 n.a. n.a. 7.76 n.a. n.a. CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 6.77 7.65 8.53 7.72 7.92 8.11 8.35 8.14 8.34 8.42 8.35 8.34 22 2-year 7.42 8.10 8.57 7.78 8.09 8.37 8.63 8.43 8.59 8.70 8.66 8.61 23 3-year 7.68 8.26 8.55 7.77 8.13 8.39 8.63 8.44 8.60 8.70 8.63 8.63 24 5-year 7.94 8.47 8.50 7.75 8.12 8.42 8.60 8.44 8.59 8.68 8.60 8.57 25 7-year 8.23 8.71 8.52 7.85 8.20 8.48 8.65 8.53 8.66 8.71 8.62 8.62 26 10-year 8.39 8.85 8.49 7.84 8.21 8.47 8.59 8.50 8.61 8.65 8.55 8.56 27 30-year 8.59 8.96 8.45 7.90 8.26 8.50 8.56 8.53 8.60 8.63 8.49 88..5533 Composite13 28 Over 10 years (long-term) 8.64 8.98 8.58 8.02 8.39 8.66 8.74 8.69 8.77 8.81 8.67 8.71 State and local notes and bonds Moody's series14 29 Aaa 7.14 7.36 7.00 6.72 6.81 7.05 6.98 6.88 6.85 7.08 7.05 7.05 30 Baa 8.17 7.83 7.40 7.03 7.35 7.26 7.41 7.20 7.50 7.50 7.41 7.45 31 Bond Buyer series 7.63 7.68 7.23 6.98 7.10 7.22 7.29 7.25 7.25 7.32 7.31 7.33 Corporate bonds Seasoned issues16 32 All industries 9.91 10.18 9.66 9.30 9.43 9.64 9.73 9.68 9.73 9.76 9.72 9.73 33 Aaa 9.38 9.71 9.26 8.86 8.99 9.22 9.37 9.26 9.35 9.40 9.39 9.37 34 Aa 9.68 9.94 9.46 9.11 9.27 9.45 9.51 9.47 9.48 9.55 9.50 9.54 35 A 9.99 10.24 9.74 9.39 9.54 9.75 9.82 9.77 9.83 9.86 9.81 9.80 36 Baa 10.58 10.83 10.18 9.82 9.94 10.14 10.21 10.20 10.24 10.22 10.17 10.20 37 A-rated, recently offered utility bonds 9.96 10.20 9.79 9.36 9.63 9.84 9.92 9.91 10.00 9.92 9.82 9.98 MEMO: Dividend/price ratio 38 Preferred stocks 8.37 9.23 9.05 8.75 8.80 8.90 9.02 8.91 8.98 9.06 9.02 9.00 39 Common stocks 3.08 3.64 3.45 3.33 3.41 3.54 3.49 3.54 3.50 3.51 3.48 3.47 1. Weekly, monthly and annual figures are averages of all calendar days, places. Thus, average issuing rates in bill auctions will be reported using two where the rate for a weekend or holiday is taken to be the rate prevailing on the rather than three decimal places. preceding business day. The daily rate is the average of the rates on a given day 11. Yields are based on closing bid prices quoted by at least five dealers. weighted by the volume of transactions at these rates. 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 2. Weekly figures are averages for statement week ending Wednesday. are read from a yield curve at fixed maturities. Based on only recently issued, 3. Rate for the Federal Reserve Bank of New York. actively traded securities. 4. Unweighted average of offering rates quoted by at least five dealers (in the 13. Averages (to maturity or call) for all outstanding bonds neither due nor case of commercial paper), or finance companies (in the case of finance paper). callable in less than 10 years, including one very low yielding "flower" bond. Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. General obligations based on Thursday figures; Moody's Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 15. General obligations only, with 20 years to maturity, issued by 20 state and 150-179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 5. Yields are quoted on a bank-discount basis, rather than in an investment 16. Daily figures from Moody's Investors Service. Based on yields to maturity yield basis (which would give a higher figure). on selected long-term bonds. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Compilation of the Federal Reserve. This series is an estimate of the yield (which may be, but need not be, the average of the rates quoted by the dealers). on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 7. Unweighted average of offered rates quoted by at least five dealers early in call protection. Weekly data are based on Friday quotations. the day. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 8. Calendar week average. For indication purposes only. sample often issues: four public utilities, four industrials, one financial, and one 9. Unweighted average of closing bid rates quoted by at least five dealers. transportation. Common stock ratios on the 500 stocks in the price index. 10. Rates are recorded in the week in which bills are issued. Beginning with the NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the For address, see inside front cover. percentage yield (on a bank discount basis) that they would accept to two decimal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.36 STOCK MARKET Selected Statistics 1989 1990 IInnddiiccaattoorr 11998877 11998888 11998899 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 161.78 149.97 180.13 185.15 192.93 193.02 192.49 188.50 192.67 187.96 182.55 186.26 2 Industrial 195.31 180.83 228.04 221.74 231.32 230.86 229.40 224.38 230.12 225.79 220.60 226.14 3 Transportation 140.52 134.09 174.90 179.32 197.53 202.02 190.36 174.26 177.25 173.67 166.69 175.08 4 Utility 74.29 72.22 94.33 90.40 92.90 93.44 94.67 94.95 99.73 95.69 92.15 92.99 5 Finance 146.48 127.41 162.01 157.78 164.86 165.51 166.55 160.89 155.63 150.11 142.68 143.14 6 Standard & Poor's Corporation (1941-43 = 10)1 287.00 265.88 323.05 331.92 346.61 347.33 347.40 340.22 348.57 339.97 330.45 338.47 7 American Stock Exchange (Aug. 31, 1973 = 50? 316.78 295.08 356.67 368.52 379.28 382.75 383.63 371.92 373.87 367.40 355.30 360.77 Volume of trading (thousands of shares) 8 New York Stock Exchange 188,922 161,386 165,568 162,501 171,683 151,752 182,394 144,389 160,671 172,420 155,960 149,240 9 American Stock Exchange 13,832 9,955 13,124 11,702 14,538 12,631 13,853 12,001 13,298 14,831 13,735 15,133 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 31,990 32,740 34,320 34,360 33,940 35,020 35,110 34,630 34,320 32,640 31,480 30,760 Free credit balances at brokers4 11 Margin-account 4,750 5,660 7,040 5,420 5,580 5,680 6,000 5,815 7,040 6,755 6,575 6,525 12 Cash-account 15,640 16,595 18,505 16,345 16,015 15,310 16,340 16,345 18,505 17,370 16,200 16,510 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8 , 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance "margin securities" (as defined in the regulations) when such credit is collatercompanies. With this change the index includes 400 industrial stocks (formerly alized by securities. Margin requirements on securities other than options are the 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 difference between the market value (100 percent) and the maximum loan value of financial. collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 2. Beginning July 5, 1983, the American Stock Exchange rebased its index 1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; effectively cutting previous readings in half. and Regulation X, effective Nov. 1, 1971. 3. Beginning July 1983, under the revised Regulation T, margin credit at On Jan. 1, 1977, the Board of Governors for the first time established in broker-dealers includes credit extended against stocks, convertible bonds, stocks Regulation T the initial margin required for writing options on securities, setting acquired through exercise of subscription rights, corporate bonds, and govern- it at 30 percent of the current market-value of the stock underlying the option. On ment securities. Separate reporting of data for margin stocks, convertible bonds, Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the and subscription issues was discontinued in April 1984. same as the option maintenance margin required by the appropriate exchange or 4. Free credit balances are in accounts with no unfulfilled commitments to the self-regulatory organization; such maintenance margin rules must be approved by brokers and are subject to withdrawal by customers on demand. the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC 5. New series beginning June 1984. approved new maintenance margin rules, permitting margins to be the price of the 6. These regulations, adopted by the Board of Governors pursuant to the option plus 15 percent of the market value of the stock underlying the option. Securities Exchange Act of 1934, limit the amount of credit to purchase and carry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • June 1990 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1989 1990 Account lys/ lyoo Apr. May June July' Aug.' Sept.' Oct.' Nov. Dec. Jan. SAIF-insured institutions 1 Assets 1,250,855 1,350,500 1,342,777" 1,344,050" 1,336,143" 1,329,503 1,315,921 1,298,904 1,286,827 1,277,314" 1,250,068" 1,237,627 2 Mortgages 721,593 764,513 763,688' 764,759' 763,328" 762,206 760,786 775555,,442288 774488,,880000 774455,,009933"" 773344,,442222"" 727,636 3 Mortgage-backed securities 201,828 214,587 216,129 216,256 211,325 204,365 195,309 118888,,449933 118811,,664411 117766,,555522"" 117700,,772255'' 169,482 4 Contra-assets to mortgage assets1 . 42,344 37,950 28,099' 27,905" 28,148' 27,659 27,433 27,131 25,972 25,001" 25,397' 23,408 5 Commercial loans 23,163 33,889 32,811' 33,008" 33,072' 33,206 33,035 32,936 32,572 32,327' 32,162' 31,941 6 Consumer loans 57,902 61,922 61,709" 61,868' 60,768" 61,079 60,958 60,405 5599,,772277 59,396' 58,728' 56,940 7 Contra-assets to nonmortgage loans2 . 3,467 3,056 2,897' 2,916' 3,190" 3,199 3,163 3,127 3,106 3,199' 3,482' 1,866 8 Cash and investment securities 169,717 186,986 175,941' 174,333 175,222 175,135 171,564 169,478 172,582 172,302' 165,849" 160,600 9 Other3 122,462 129,610 123,495' 124,648' 123,766" 124,370 124,864 122,421 120,584 119,845' 117,061' 116,301 10 Liabilities and net worth . 1,250,855 1,350,500 1,342,777" 1,344,050" 1,336,143" 1,329,503 1,315,921 1,298,904 1,286,827 1,277,314" 1,250,068" 1,237,627 11 Savings capital 932,616 971,700 954,495 955,566 960,073 963,158 960,344 958,901 948,500 946,655' 945,649" 933,794 12 Borrowed money 249,917 299,400 318,671 318,367 312,093 301,571 289,634 281,473 275,978 268,462 252,193" 253,519 13 FHLBB 116,363 134,168 148,000 146,520 144,217 141,875 138,331 133,633 130,514 127,671 124,578" 121,697 14 Other 133,554 165,232 170,671 171,847 167,876 159,696 151,303 147,840 145,464 140,791 127,615" 131,822 15 Other 21,941 24,216 31,629 33,585 29,892 31,886 33,811 29,952 30,965 31,992' 27,462" 26,742 16 Net worth n.a." n.a/ 37,983' 36,532' 34,084" 32,888 32,131 28,578 31,384 30,205' 24,763" 23,563 SAIF-insured federal savings banks 17 Assets 284,270 425,983 455,143 469,939 495,688" 506,982 504,228 500,943 502,484 499,995 498,522 18 Mortgages 161,926 227,869 249,940 257,187 276,603' 285,061 285,557 283,158 228833,,665522 282,510 283,844 19 Mortgage-backed securities 45,826 64,957 69,964 73,963 73,940" 74,379 72,124 72,478 7722,,333322 7711,,220044 70,499 20 Contra-assets to mortgage assets' . 9,100 13,140 13,049 13,227 13,647' 13,973 13,871 13,815 13,506 13,216 13,548 21 Commercial loans 6,504 16,731 16,497 16,934 18,083' 18,346 18,233 18,256 18,299 18,172 18,143 22 Consumer loans 17,696 24,222 26,768 27,957 28,156' 28,993 28,987 28,762 2288,,332222 2288,,007799 28,212 23 Contra-assets to nonmortgage loans . 678 889 863 888 1,027' 1,022 1,026 1,072 1,048 1,082 1,193 n.a. 24 Finance leases plus interest 591 880 1,047 1,072 1,083 1,089 1,076 1,092 1,085 1,092 1,101 25 Cash and investment ... 35,347 61,029 61,278 62,002 65,736' 65,979 65,040 64,101 65,193 65,191 64,538 26 Other 24,069 35,428 37,333 38,021 39,619' 40,345 40,536 40,661 40,799 40,852 39,981 27 Liabilities and net worth . 284,270 425,983 455,143 469,939 495,688" 506,982 504,228 500,943 502,484 499,995 498,522 28 Savings capital 203,196 298,197 315,725 324,369 342,146' 352,547 352,158 353,474 355,923 355,874 360,547 29 Borrowed money 60,716 99,286 110,004 114,854 121,893' 121,194 117,973 115,627 114,231 111,369 108,448 30 FHLBB 29,617 46,265 53,519 55,463 58,505 59,781 59,189 57,941 57,793 56,842 57,032 31 Other 31,099 53,021 56,485 59,391 63,388' 61,413 58,784 57,686 56,438 54,527 51,416 32 Other 5,324 8,075 9,306 10,174 9,822' 10,695 11,444 9,906 10,317 10,749 9,041 33 Net worth 15,034 20,235 23,404 23,926 25,688" 26,249 26,371 25,971 25,983 25,958 22,716 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.37—Continued 1989 1990 AAccccoouunntt 11998877 11998888 Apr. May June July' Aug.' Sept.' Oct.' Nov Dec. Jan. Credit unions4 34 Total assets/liabilities and capital n.a. 174,593 177,417 178,812 180,664 179,029 180,035 181,812 181,527 182,856 183,688 35 Federal n.a. 114,566 115,416 116,705 117,632 117,475 117,463 118,746 118,887 119,682 120,666 36 State n.a. 60,027 62,001 62,107 63,032 61,554 62,572 63,066 62,640 63,174 63,022 37 Loans outstanding n.a. 113,191 115,249 116,947 119,101 119,720 120,577 122,522 122,997 122,899 122,608 n a. 38 Federal n.a. 73,766 75,003 76,052 77,729 78,472 78,946 80,548 80,570 80,601 80,272 39 State n.a. 39,425 40,246 40,895 41,372 41,248 41,631 41,874 42,427 42,298 42,336 40 Savings n.a. 159,010 161,388 162,134 164,415 162,405 162,754 164,050 164,695 165,533 167,371 41 Federal n.a. 104,431 105,208 105,787 106,984 106,266 106,038 106,633 107,588 108,319 109.653 42 State n.a. 54,579 56,180 56,347 57,431 56,139 56,716 57,417 57,107 57,214 57,718 Life insurance companies 43 Assets 1,044,459 1,157,140 1,209,242 1,221,332 1,232,195 1,247,341 1,257,045 1,266,773 1,276,181 1,289,467 1,303,691 Securities 44 Government 84,426 84,051 82,873 83,847 84,564 84,438 83,225 82,867 83,727 83,609 84,381 45 United States5 57,078 58,564 57,127 57,790 57,817 57,698 56,978 56,684 57,726 57,290 58,169 46 State and local 10,681 9,136 8,911 8,953 9,036 9,061 9,002 9,037 9,019 9,280 9,191 47 Foreign6 16,667 16,351 16,835 17,104 17,711 17,679 17,245 17,146 16,982 17,039 17,021 48 Business 569,199 660,416 697,703 706,960 714,398 726,599 735,441 742,537 748,075 758,803 777,415 n. a. 49 Bonds 472,684 556,043 587,889 595,500 601,786 606,686 614,585 621,856 628,695 637,690 642,445 50 Stocks 96,515 104,373 109,814 111,460 112,612 119,913 120,856 120,681 119,380 121,113 134,970 51 Mortgages 203,545 232,863 235,312 236,651 237,444 237,865 238,944 240,189 242,391 243,728 246,345 52 Real estate 34,172 37,371 37,976 38,598 38,190 38,622 38,822 38,942 39,343 39,339 39,368 53 Policy loans 53,626 54,236 55,201 55,525 55,746 55,812 56,077 56,403 56,727 56,916 57,141 54 Other assets 89,586 93,358 100,173 99,751 101,853 104,005 104,536 105,835 105,918 107,072 110,284 1. Contra-assets are credit-balance accounts that must be subtracted from the insured by the FSLIC and based on the FHLBB thrift Financial Report. corresponding gross asset categories to yield net asset levels. Contra-assets to FSLIC-insured federal savings banks: Estimates by the FHLBB for federal mortgage loans, contracts, and pass-through securities include loans in process, savings banks insured by the FSLIC and based on the FHLBB thrift Financial unearned discounts and deferred loan fees, valuation allowances for mortgages Report. "held for sale," and specific reserves and other valuation allowances. Savings banks: Estimates by the National Council of Savings Institutions for all 2. Contra-assets are credit-balance accounts that must be subtracted from the savings banks in the United States and for FDIC-insured savings banks that have corresponding gross asset categories to yield net asset levels. Contra-assets to converted to federal savings banks. nonmortgage loans include loans in process, unearned discounts and deferred loan Credit unions: Estimates by the National Credit Union Administration for fees, and specific reserves and valuation allowances. federally chartered and federally insured state-chartered credit unions serving 3. Holding of stock in Federal Home Loan Bank and Finance leases plus natural persons. interest are included in "Other" (line 9). Life insurance companies: Estimates of the American Council of Life Insurance 4. 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 5. 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 6. 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. NOTE. FSLIC-insured institutions: Estimates by the FHLBB for all institutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • June 1990 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1989' 1990' 1987 1988 1989 Oct. Nov. Jan. Mar. U.S. budget1 1 Receipts, total 854,143 908,166 990,691' 68,426 71,213 89,130 99,538 65,170 64,819 2 On-budget 640,741 666,675 727,025' 50,122 51,989 69,052 74,243 44,133 38,989 3 Off-budget 213,402 241,491 263,666' 18,304 19,223 20,077 25,295 21,037 25,829 4 Outlays, total 1,003,804 1,063,318 1,142,680' 94,428 100,958 103,903 91,271 100,434 118,155 5 On-budget 809,972 860,626 931,458' 74,641 81,055 92,306 72,956 80,872 97,631 6 Off-budget 193,832 202,691 211,221' 19,787 19,904 11,598 18,315 19,563 20,524 7 Surplus, or deficit (-), total -149,661 -155,151 -151,988 -26,002 -29,746 -14,774 8,267 -35,264 -53,336 8 On-budget -169,231 -193,951 -204,433 -24,518 -29,065 -23,253 1,286 -36,738 -58,642 9 Off-budget 19,570 38,800 52,445 -1,483 -680 8,480 6,980 1,474 5,306 Source of financing (total) 10 Borrowing from the public 151,717 166,139 140,156 36,690 6,821 18,221 11 Operating cash (decrease, or increase 12 Ot < he -) r ) 2 , -5 2 , , 0 9 5 % 2 - -3 7 , , 0 9 2 6 5 3 3 8 , , 4 4 2 0 5 7 - -8 2 , , 1 5 7 1 5 3 -1 2 1 1 , , 8 7 1 7 6 2 - 1 5 3 ,2 ,1 2 7 1 4 - - 1 5 8 , , 9 1 9 1 2 6 - 2 8 5 , , 4 4 1 6 9 2 -3 1 ,8 ,1 7 2 6 3 MEMO 13 Treasury operating balance (level, end of period) 36,436 44,398 40,973 43,486 21,715 26,935 45,051 19,589 18,466 14 Federal Reserve Banks 9,120 13,024 13,452 13,124 5,501 6,217 13,153 6,613 4,832 15 Tax and loan accounts 27,316 31,375 27,521 30,362 16,214 20,718 31,899 12,976 13,634 1. In accordance with the Balanced Budget and Emergency Deficit Control Act international monetary fund; other cash and monetary assets; accrued interest of 1985, all former off-budget entries are now presented on-budget. The Federal payable to the public; allocations of special drawing rights; deposit funds; Financing Bank (FFB) activities are now shown as separate accounts under the miscellaneous liability (including checks outstanding) and asset accounts; agencies that use the FFB to finance their programs. The act has also moved two seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustsocial security trust funds (Federal old-age survivors insurance and Federal ment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold. disability insurance trust funds) off-budget. SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S. 2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to Government and the Budget of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr 1988 1989 1990 111999888888 111999888999 HI H2 HI H2 Jan. Feb. Mar. RECEIPTS 1 All sources 908,166 990,691" 475,724 449,320" 527,574 470,329" 99,538" 65,170 64,819 2 Individual income taxes, net 401,181 445,690 207,659 200,300 233,572 218,661 56,044 28,830 13,174 3 Withheld 341,435 361,386 169,300 179,600 174,230 193,2% 34,172 32,852 31,323 4 Presidential Election Campaign Fund 33 32 28 4 28 3 0 4 9 5 Nonwithheld 132,199 154,839 101,614 29,880 121,563 33,303 22,389 960 5,455 6 Refunds 72,487 70,567 63,283 9,186 62,251 7,943 517 4,986 23,614 Corporation income taxes 7 Gross receipts 109,683 117,015 58,002 56,409 61,585 52,269 4,277 2,678 1144,,447777 8 Refunds 15,487 13,723 8,706 7,250 7,259 6,842 1,159 1,447 1,823 9 Social insurance taxes and contributions, net 334,335 359,416 181,058 157,603 200,127 162,574 32,863 29,055 3322,,996611 10 Employment taxes and contributions 305,093 332,859 164,412 144,983 184,569 152,407 31,767 26,473 3322,,337766 11 Self-employment taxes and contributions 17,691 18,405 14,839 3,032 16,371 1,947 1,213 1,500 1,213 12 Unemployment insurance 24,584 22,011 14,363 10,359 13,279 7,909 742 2,230 173 13 Other net receipts 4,659 4,547 2,284 2,262 2,277 2,260 354 352 413 14 Excise taxes 35,540 34,386 16,440 19,299 16,814 16,844 2,624 2,260 2,814 15 Customs deposits 15,411 16,334 7,522 8,107 7,918 8,667 1,440 1,228 1,397 16 Estate and gift taxes 7,594 8,745 3,863 4,054 4,583 4,451 805 664 769 17 Miscellaneous receipts 19,909 22,829" 9,950 10,799" 10,235 13,703" 2,644" 1,902 1,050 OUTLAYS 18 All types 1,063,318 1,142,680" 512,856 552,727" 565,524 587,303" 91,271" 100,434" 118,155 19 National defense 290,361 303,551 143,080 150,496 148,098 149,613 21,978 24,870 29,516 20 International affairs 10,471 9,596 7,150 2,636 6,605 5,981 1,248 1,144 1,568 21 General science, space, and technology 10,841 12,891 5,361 5,852 6,238 7,091 1,058 1,066 1,244 22 Energy 2,297 3,745 555 1,966 2,221 1,397 40 83 486 23 Natural resources and environment 14,625 16,084 6,776 9,072" 7,022 9,183" 1,129 1,034 1,200 24 Agriculture 17,210 16,948 7,872 6,911 9,619 4,132 1,113 949 1,875 25 Commerce and housing credit 18,828 27,810 5,951 19,836 4,129 22,200 -1,133" 1,886" 7,328 26 Transportation 27,272 27,623 12,700 14,922 13,035 14,982 2,409 2,097 2,103 27 Community and regional development 5,294 5,755 2,765 2,690 1,833 4,879 848 575 797 28 Education, training, employment, and social services 31,938 35,697 15,451 16,152 18,083 1188,,666633 3,4% 3,421 33,,113355 29 Health 44,490 48,391 22,643 23,360 24,078 25,339 4,663 4,459" 4,809 30 Social security and medicare 297,828 317,506 135,322 149,017 162,195 162,322 28,228 28,291" 29,032 31 Income security 129,332 136,765 65,555 64,978 70,937 67,950 12,010 13,609 16,069 32 Veterans benefits and services 29,406 30,066 13,241 15,797 14,891 14,864 1,086 2,608 3,857 33 Administration of justice 8,436 9,396 4,369" 4,361" 4,801 4,%3 811 819 738 34 General government 9,518 8,940 4,337 5,137 3,858 4,753 972 484 984 35 General-purpose fiscal assistance 1,816 n.a. 448 0 0 n.a. n.a. n.a. n.a. 36 Net interest6 151,748 169,314 76,098 78,317 86,009 87,927 14,281 15,924 15,853 37 Undistributed offsetting receipts -36,967 -37,212 -17,766 -18,771 -18,131 -18,935 —2,%7 -2,884 -2,437 1. Functional details do not add to total outlays for calendar year data because 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous revisions to monthly totals have not been distributed among functions. Fiscal year receipts. total for outlays does not correspond to calendar year data because revisions from 6. Net interest function includes interest received by trust funds. the Budget have not been fully distributed across months. 7. Consists of rents and royalties on the outer continental shelf and U.S. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. government contributions for employee retirement. 3. Old-age, disability, and hospital insurance. SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of 4. Federal employee retirement contributions and civil service retirement and Receipts and Outlays of the U.S. Government, and the U.S. Office of Managedisability fund. ment and Budget, Budget of the U.S. Government, Fiscal Year 1990. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • June 1990 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1988 1989 1990 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 2,493.2 2,555.1 2,614.6 2,707.3 2,763.6 2,824.0 2,881.1 2,975.5 3,081.9 2 Public debt securities 2,487.6 2,547.7 2,602.2 2,684.4 2,740.9 2,799.9 2,857.4 2,953.0 3,052.0 3 Held by public 1,996.7 2,013.4 2,051.7 2,095.2 2,133.4 2,142.1 2,180.7 2,245.2 n.a. 4 Held by agencies 490.8 534.2 550.4 589.2 607.5 657.8 676.7 707.8 n.a. 5 Agency securities 5.6 7.4 12.4 22.9 22.7 24.0 23.7 22.5 n.a. 6 Held by public 5.1 7.0 12.2 22.6 22.3 23.6 23.5 22.4 n.a. 7 Held by agencies .6 .5 .2 .3 .4 .5 .1 .1 n.a. 8 Debt subject to statutory limit 2,472.6 2,532.2 2,586.9 2,669.1 2,725.6 2,784.6 2,829.8 2,921.7 2,988.9 9 Public debt securities 2,472.1 2,532.1 2,586.7 2,668.9 2,725.5 2,784.3 2,829.5 2,921.4 2,988.6 10 Other debt1 .5 .1 .1 .2 .2 .2 .3 .3 .3 11 MEMO: Statutory debt limit 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,800.0 2,870.0 3,122.7 3,122.7 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 1989 1990 Type and holder 1986 1987 1988 1989 Q2 Q3 Q4 Q1 1 Total gross public debt 2,214.8 2,431.7 2,684.4 2,953.0 2,799.9 2,857.4 2,953.0 3,052.0 By type 2 Interest-bearing debt 2,212.0 2,428.9 2,663.1 2,931.8 2,797.4 2,836.3 2,931.8 3,029.5 3 Marketable 1,619.0 1,724.7 1,821.3 1.945.4 1,877.3 1,892.8 1.945.4 1.995.3 4 Bills 426.7 389.5 414.0 430.6 397.1 406.6 430.6 453.1 5 Notes 927.5 1,037.9 1,083.6 1.151.5 1,137.2 1,133.2 1.151.5 1.169.4 6 Bonds 249.8 282.5 308.9 348.2 328.0 338.0 348.2 357.9 7 Nonmarketable1 593.1 704.2 841.8 986.4 920.1 943.5 986.4 1,034.2 8 State and local government series 110.5 139.3 151.5 163.3 156.0 158.6 163.3 163.5 9 Foreign issues 4.7 4.0 6.6 6.8 6.2 6.8 6.8 37.1 10 Government 4.7 4.0 6.6 6.8 6.2 6.8 6.8 37.1 11 Public .0 .0 .0 .0 .0 .0 .0 .0 12 Savings bonds and notes 90.6 99.2 107.6 115.7 112.3 114.0 115.7 118.0 13 Government account series3 386.9 461.3 575.6 695.6 645.2 663.7 695.6 705.1 14 Non-interest-bearing debt 2.8 2.8 21.3 21.2 2.5 21.1 21.2 22.4 By holder4 15 U.S. government agencies and trust funds 403.1 477.6 589.2 707.8 657.8 676.7 707.8 16 Federal Reserve Banks 211.3 222.6 238.4 228.4 231.8 220.6 228.4 17 Private investors 1,602.0 1,745.2 1,852.8 2,011.0 1,905.4 1,954.0 2,011.0 18 Commercial banks 203.5 201.5 193.8 190.0 199.2 181.5 190.0 19 Money market funds 28.0 14.6 11.8 14.4 11.3 12.9 14.4 20 Insurance companies 105.6 104.9 107.3 n.a. 106.3 107.7 n.a. 21 Other companies 68.8 84.6 87.1 93.8 92.1 93.5 93.8 22 State and local Treasurys 262.8 284.6 313.6 n.a. 322.1 325.2 n.a. Individuals 23 Savings bonds 92.3 101.1 109.6 117.7 114.0 115.7 117.7 24 Other securities 70.4 70.2 76.4 91.5 92.5 92.1 91.5 25 Foreign and international 263.4 299.7 362.1 392.9 367.9 393.5 392.9 26 Other miscellaneous investors6 506.6 584.0 591.1 n.a. 600.0 631.9 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 and the are actual holdings; data for other groups are Treasury estimates. Treasury 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 1990 1990 IItteemm 11998877 11998888 11998899'' Jan/ Feb/ Mar. Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Immediate delivery2 1 U.S. Treasury securities 110,050 101,623 112,722 117,177 122,793 105,335 116,618' 113,179' 101,655 105,399 98,236 109,210 By maturity 2 Bills 37,924 29,387 30,738 32,835 31,175 30,659 30,686' 28,809' 30,454 32,418 29,213 27,227 3 Other within 1 year 3,271 3,426 3,182 3,377 2,960 2,121 2,975' 2,858' 1,920 1,986 2,333 1,850 4 1-5 years 27,918 27,777 33,663 32,280 36,425 31,177 41,819'' 34,12c 26,607 29,155 26,251 40,261 5 5-10 years 24,014 24,939 28,680 30,811 31,398 25,090 22,967' 31,442' 27,432 25,181 24,181 23,438 6 Over 10 years 16,923 16,093 16,458 17,874 20,835 16,289 18,172' 15,950' 15,242 16,659 16,259 16,434 By type of customer 7 U.S. government securities dealers 2,936 2,761 3,286 3,141 3,941 3,802 3,794 3,541' 2,813 4,323 4,271 3,341 8 U.S. government securities brokers 61,539 59,844 66,418 71,906 72,038 60,271 68,474 66,652 59,939 59,990 55,174 63,172 9 All others3 45,575 39,019 43,017 42,130 46,814 41,262 44,351' 42,985' 38,903 41,086 38,791 42,697 10 Federal agency securities 18,084 15,903 18,626 19,937 19,069 19,146 14,101 18,111 16,877 19,i09 21,976 17,214 11 Certificates of deposit 4,112 3,369 2,798 2,283 1,756 1,518 1,575 1,767 1,310 1,727 1,802 1,277 12 Bankers acceptances 2,965 2,316 2,222 1,843 1,574 1,382 1,654 1,748 1,450 1,489 1,381 1,347 13 Commercial paper 17,135 22,927 31,805 37,311 35,190 37,018 38,480 36,805 35,961 37,720 37,982 36,513 Futures contracts 14 Treasury bills 3,233 2,627 2,525 2,684 2,393 2,078 2,284 1,852 3,233 1,900 1,264 1,850 15 Treasury coupons 8,963 9,695 9,602 12,356 13,730 11,826 13,244 14,133 11,727 12,338 11,621 11,135 16 Federal agency securities 5 1 8 14 23 10 49 16 31 2 4 0 Forward transactions 17 U.S. Treasury securities 2,029 2,095 2,127 1,733 3,006 1,260 2,690 1,952 1,379 1,014 864 1,949 18 Federal agency securities 9,290 8,008 9,483 11,588 12,885 9,598 10,749 10,495 9,104 13,384 9,873 7,558 1. Transactions are market purchases and sales of securities as reported to the securities, nondealer departments of commercial banks, foreign banking agencies, Federal Reserve Bank of New York by the U.S. government securities dealers on and the Federal Reserve System. its published list of primary dealers. 4. Futures contracts are standardized agreements arranged on an organized Averages for transactions are based on the number of trading days in the period. exchange in which parties commit to purchase or sell securities for delivery at a The figures exclude allotments of, and exchanges for, new U.S. Treasury future date. securities, redemptions of called or matured securities, purchases or sales of 5. Forward transactions are agreements arranged in the over-the-counter securities under repurchase agreement, reverse repurchase (resale), or similar market in which securities are purchased (sold) for delivery after 5 business days contracts. from the date of the transaction for Treasury securities (Treasury bills, notes, and 2. Data for immediate transactions do not include forward transactions. bonds) or after 30 days for mortgage-backed agency issues. 3. Includes, among others, all other dealers and brokers in commodities and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • June 1990 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Averages of daily figures, in millions of dollars 1990 1990 IItteemm 11998877 11998888 11998899 Jan. Feb. Mar. Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Positions Net immediate2 1 U.S. Treasury securities -6,216 -22,765 —5,944' 18,316r 7,882' 2,203 8,837' 8,223 2,543 1,702 -3,047 2 Bills 4,317 2,238 7,834' 24,923' 19,033 16,162 16,485 18,546 16,788 16,827 13,385 3 Other within 1 year 1,557 -2,236 -1,528 -836 -933' -884 -1,565' -1,137 -730 -798 -793 4 1-5 years 649 -3,020 2,336' 13,988' 11,232' 5,308 11,174' 7,957 4,804 3,771 3,997 5 5-10 years -6,564 -9,663 -8,133 -10,461' -8,464' -5,894 -5,241' -4,990 -5,575 -5,720 -7,244 6 Over 10 years -6,174 -10,084 -6,452 -9,300' -12,985' -12,488 -12,017' -12,154 -12,743 -12,377 -12,393 7 Federal agency securities 31,911 28,230 31,914 35,551 36,745 37,064 34,056 34,380 39,230 41,603 34,524 8 Certificates of deposit 8,188 7,300 6,674 5,972 5,338 4,581 4,981 5,088 4,959 4,391 4,294 9 Bankers acceptances 3,660 2,486 2,089 1,703 1,653 1,459 1,467 1,615 1,526 1,606 1,218 10 Commercial paper 7,496 6,152 8,243 7,663 7,925 7,285 8,228 8,524 7,273 7,586 6,120 Futures positions 11 Treasury bills -3,373 -2,210 -4,599 -9,8% -12,779" -8,417 -13,738' -11,980 -7,134 -7,576 -7,666 12 Treasury coupons 5,988 6,224 -2,919 -6,389' -4,845 -5,561 -5,014 -5,429 -3,329 -5,173 -7,857 13 Federal agency securities -95 0 14 27 103 45 188 91 40 29 26 Forward positions 14 U.S. Treasury securities -1,211 346 -545' -2,131' -1,046 -1,723 -310 -1,055 -2,696 -2,789 -1,064 15 Federal agency securities -18,817 -16,348 -16,878 -13,817' -15,942 -16,271 -15,016 -14,409 -18,524 -20,326 -13,069 Financing3 Reverse repurchase agreements4 16 Overnight and continuing 126,709 136,327 157,955 150,660 167,362 143,082 171,370 157,297 158,231 157,715 156,319 17 Term 148,288 177,477 225,126 216,646 216,957 187,140 198,798 220077,,336677 220033,,773311 220055,,888822 206,435 Repurchase agreements 18 Overnight and continuing 170,763 172,695 219,083 240,341 242,687 206,187 243,396 231,305 228,289 227,385 220,243 19 Term 121,270 137,056 179,555 179,484 180,708 152,558 162,483 168,457 162,860 167,615 172,322 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 1990 AAggeennccyy 11998855 11998866 11998877 11998888 Oct. Nov. Dec. Jan. Feb. 1 Federal and federally sponsored agencies 293,905 307,361 341,386 381,498 409,113 412,234 411,805 414,414 420,309 2 Federal agencies 36,390 36,958 37,981 35,668 36,378 35,855 35,664 34,995 42,974 3 Defense Department' 71 33 13 8 7 7 7 7 7 4 Export-Import Bank2,3 15,678 14,211 11,978 11,033 10,990 10,990 10,985 10,985 10,985 5 Federal Housing Administration 115 138 183 150 301 308 328 239 280 6 Government National Mortgage Association participation certificates5 2,165 2,165 1,615 0 0 00 0 00 00 7 Postal Service6 1,940 3,104 6,103 6,142 6,445 6,445 6,445 6,445 6,445 8 Tennessee Valley Authority 16,347 17,222 18,089 18,335 18,635 18,105 17,899 17,319 25,257 9 United States Railway Association 74 85 0 0 0 0 0 0 0 10 Federally sponsored agencies7 257,515 270,553 303,405 345,830 372,735 376,379 376,141 0 377,335 11 Federal Home Loan Banks 74,447 88,758 115,727 135,836 140,854 138,229 136,087 133,699 132,975 12 Federal Home Loan Mortgage Corporation 11,926 13,589 17,645 22,797 25,097 27,018 26,148r 25,298 25,017 13 Federal National Mortgage Association 93,896 93,563 97,057 105,459 111,776 115,774 116,064 115,164 116,207 14 Farm Credit Banks8 68,851 62,478 55,275 53,127 54,029 54,131 54,864 55,809 53,790 15 Student Loan Marketing Association 8,395 12,171 16,503 22,073 27,440 27,688 28,705 30,908 30,806 16 Financing Corporation10 0 0 1,200 5,850 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation 0 0 0 690 847 847 847 847 847 18 Resolution Funding Corporation12 0 0 0 0 4,522 4,522 4,522 9,524 9,524 MEMO 19 Federal Financing Bank debt 153,373 157,510 152,417 142,850 135,841 135,213 134,873 134,263r 133,567 Lending to federal and federally sponsored agencies 70 Export-Import Bank3 15,670 14,205 1111,,997722 1111,,002277 1100,,998844 1100,,998844 1100,,997799 1100,,997799 1100,,997799 7.1 Postal Service 1,690 2,854 5,853 5,892 6,195 6,195 6,195 6,195 6,195 7,7 Student Loan Marketing Association 5,000 4,970 4,940 4,910 4,880 4,880 4,880 4,880 4,880 23 Tennessee Valley Authority 14,622 15,797 16,709 16,955 17,255 16,725 16,519 15,939 15,877 24 United States Railway Association6 74 85 0 0 0 0 0 0 0 Other Lending14 75 Farmers Home Administration 64,234 65,374 59,674 58,496 53,311 53,311 53,311 53,461 5522,,883311 76 Rural Electrification Administration 20,654 21,680 21,191 19,246 19,233 19,249 19,265 19,212 19,219 27 31,429 32,545 32,078 26,324 23,983 23,869 23,724 23,597 23,586 1. Consists of mortgages assumed by the Defense Department between 1957 shown on line 21. and 1963 under family housing and homeowners assistance programs. 10. The Financing Corporation, established in August 1987 to recapitalize the 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. Federal Savings and Loan Insurance Corporation, undertook its first borrowing in 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. October 1987. 4. Consists of debentures issued in payment of Federal Housing Administration 11. The Farm Credit Financial Assistance Corporation (established in January insurance claims. Once issued, these securities may be sold privately on the 1988 to provide assistance to the Farm Credit System) undertook its first securities market. borrowing in July 1988. 5. Certificates of participation issued before fiscal 1969 by the Government 12. The Resolution Funding Corporation, established by the Financial Institu- National Mortgage Association acting as trustee for the Farmers Home Admin- tions Reform, Recovery, and Enforcement Act of 1989, undertook its first istration; Department of Health, Education, and Welfare; Department of Housing borrowing in October 1989. and Urban Development; Small Business Administration; and the Veterans 13. Includes FFB purchases of agency assets and guaranteed loans; the latter Administration. contain loans guaranteed by numerous agencies with the guarantees of any 6. Off-budget. particular agency being generally small. The Farmers Home Administration item 7. Includes outstanding noncontingent liabilities: notes, bonds, and deben- consists exclusively of agency assets, while the Rural Electrification Administratures. Some data are estimated. tion entry contains both agency assets and guaranteed loans. 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, 14. The FFB, which began operations in 1974, is authorized to purchase or sell shown in line 17. obligations issued, sold, or guaranteed by other federal agencies. Since FFB 9. Before late 1981, the Association obtained financing through the Federal incurs debt solely for the purpose of lending to other agencies, its debt is not Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is included in the main portion of the table in order to avoid double counting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • June 1990 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1989 1990 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar. 1 All issues, new and refunding1 102,407 114,522 113,646 9,824 10,818 9,075 9,564 13,636 6,694 6,329 9,880 Type of issue 2 General obligation 30,589 30,312 35,774 2,199 3,500 3,273 3,328 2,158 2,675 3,010 3,199 3 Revenue 71,818 84,210 77,873 7,625 7,318 5,802 6,237 11,478 4,019 3,319 6,681 Type of issuer 4 State 10,102 8,830 11,819 694 764 1,330 930 911 712 1,196 707 5 Special district and statutory authority 65,460 74,409 71,022 7,027 7,567 4,770 5,473 9,391 4,744 3,277 6,247 6 Municipalities, counties, and townships 26,845 31,193 30,805 2,103 2,487 2,975 3,161 3,334 1,238 1,856 2,926 7 Issues for new capital, total 56,789 79,665 84,062 6,612 7,470 7,266 7,777 10,195 6,263 5,635 6,667 Use of proceeds 8 Education 9,524 15,021 15,133 1,302 1,639 1,006 1,058 1,495 11,,337744 1,420 1,018 9 Transportation 3,677 6,825 6,870 556 976 280 675 645 9988 511 1,158 10 Utilities and conservation 7,912 8,496 11,427 813 622 718 1,137 2,219 1,747 718 502 11 Social welfare 11,106 19,027 16,703 1,553 1,242 1,803 1,441 2,518 1,017 432 1,425 12 Industrial aid 7,474 5,624 5,036 447 381 345 444 1,119 200 115 432 13 Other purposes 18,020 24,672 28,894 1,941 2,610 3,114 3,022 2,199 1,827 2,439 2,132 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 1989 1990 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998877 11998888 11998899 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 All issues1 392,339 409,925 233,103r 18,094 15, IOC 14,704' 24,893' 20,706' 21,584' 15,008' 13,919 2 Bonds2 325,838 352,124 201,827r 13,040 13,065' 12,431' 21,213' 16,466' 17,639' 12,730' 11,000 Type of offering 3 Public, domestic 209,455 201,246 179,069r 11,620 12,249' 11,211' 20,085' 14,383 16,013' 10,678' 10,000 4 Private placement, domestic3 92,070 127,700 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5. Sold abroad 24,308 23,178 22,758' 1,420 816 l^ 1,128' 2,083' 1,626' 2,052' 1,000 Industry group 6 Manufacturing 61,266 70,595 42,366 2,850 2,670 2,247 3,646 3,551 4,193 2,001' 2,355 7 Commercial and miscellaneous 49,773 62,070 15,968 1,354 1,090 1,393 1,830 1,253 347 655' 131 8 Transportation 11,974 10,076 3,586 0 423 30 906 312 1,083 35 0 9 Public utility 23,004 19,318 13,682 1,346 705 1,059 1,748 1,022 1,098 1,018' 1,057 10 Communication 7,340 5,951 3,859 300 358 308 632 812 577 23' 35 11 Real estate and financial 172,474 184,114 122,370' 7,190 7,819' 7,395' 12,452' 9,516' 10,342' 8,999' 7,422 12 Stocks2 66,508 57,802 32,225 5,054 2,035 2,273 3,680 4,240 3,945 2,278 2,919 Type 13 Preferred 10,123 6,544 6,194 920 1,013 519 570 160 626 50 167 14 Common 43,225 35,911 26,030 4,134 1,023 1,754 3,110 4,080 3,319 2,228 2,752 15 Private placement3 13,157 15,346 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 16 Manufacturing 13,880 7,608 5,081 593 393 193 190 378 279 835 431 17 Commercial and miscellaneous 12,888 8,449 4,428 438 343 155 728 498 1,045 248 1,017 18 Transportation 2,439 1,535 532 0 0 0 50 0 0 0 0 19 Public utility 4,322 1,898 2,297 25 137 709 465 211 244 106 582 20 Communication 1,458 515 471 29 20 0 0 0 0 0 00 21 Real estate and financial 31,521 37,798 19,250 3,969 1,020 1,195 2,214 3,153 2,377 1,090 888899 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 1990 IItteemm 11998888 11998899 July Aug. Sept. Oct. Nov. Dec. Jan/ Feb. INVESTMENT COMPANIES' 1 Sales of own shares2 271,237 306,445 25,330 26,800 23,911 23,872 24,673 30,982 35,620 26,117 2 Redemptions of own shares3 267,451 272,165 20,053 22,262 21,499 21,702 19,573 24,967 27,331 20,978 3 Net sales 3,786 34,280 5,277 4,538 2,412 2,170 5,100 6,015 8,289 5,139 4 Assets4 472,297 553,871 535,910 539,553 539,814 534,922 549,892 553,871 535,165 542,690 5 Cash position5 45,090 44,780 47,888 47,209 47,163 46,146 47,875 44,780 48,865 51,207 6 Other 427,207 509,091 488,022 492,344 492,651 488,776 502,017 509,091 486,300 491,483 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. 1988 1989 AAccccoouunntt 11998877 11998888 11998899'' Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Corporate profits with inventory valuation and capital consumption adjustment 298.7 328.6 301.3 318.1 325.3 330.9 340.2 316.3 307.8 295.2 285.7 2 Profits before tax 266.7 306.8 290.6 288.8 305.3 314.4 318.8 318.0 296.0 275.0 273.5 3 Profits tax liability 124.7 137.9 129.7 129.0 138.4 141.2 143.2 144.4 134.9 122.6 116.9 4 Profits after tax 142.0 168.9 160.9 159.9 166.9 173.2 175.6 173.6 161.1 152.4 156.7 5 Dividends 98.7 110.4 122.1 105.7 108.6 112.2 115.2 118.5 120.9 123.3 125.6 6 Undistributed profits 43.3 58.5 38.9 54.2 58.3 61.1 60.4 55.1 40.2 29.1 31.1 7 Inventory valuation -18.9 -25.0 n.a. -20.7 -28.8 -30.4 -20.1 -38.3 -21.0 n.a. n.a. 8 Capital consumption adjustment 50.9 46.8 29.3 49.9 48.9 46.9 41.5 36.6 32.3 26.5 21.9' Source. Survey of Current Business (Department of Commerce). 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment A Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1988 1989 1990 IInndduussttrryy 11998888'' 11998899'' 11999900''11 Q3 Q4 Q1 Q2 Q3 Q4 Ql1 Q21 1 430.76 475.52 512.82 435.61 442.11 459.47 470.86 484.93 486.80 502.65 509.08 Manufacturing 7788..3300 8833..6688 8855..4488 7799..1155 8800..5566 8811..2266 8822..9977 8855..6666 8844..8844 8866..3355 8833..9922 7 8888..0011 110000..8866 110088..0022 8899..6622 9922..7766 9933..9966 9988..5577 110022..0000 110088..9922 110055..3300 110055..7744 3 Nonmanufacturing 12.66 12.52 13.31 12.53 12.38 12.15 12.70 12.59 12.65 13.07 13.55 4 Transportation 777...000666 888...111222 888...666111 666...888444 777...444555 888...000222 777...333777 888...111666 888...999444 888...666999 888...333222 5 777...222888 888...999111 111222...000999 888...000999 777...666999 777...000444 999...444999 111222...444888 666...666111 111111...111111 111222...222888 6 Air 777...000000 777...555666 777...888888 777...000888 666...888999 888...000777 777...444000 777...888999 666...888777 888...444999 777...111111 7 Other Public utilities 333222...000333 333444...222000 333555...999999 333222...000777 333333...666999 333333...666999 333555...333444 333333...777333 333444...000444 333444...999555 333666...888444 8 111444...666444 111666...555222 111777...111555 111444...666111 111555...000444 111777...111222 111666...666777 111555...888444 111666...444666 111666...555666 111666...999222 9 111888333...777666 222000333...111444 222222444...333000 111888555...666111 111888555...666555 111999888...111555 222000000...333666 222000666...555999 222000777...444666 222111888...111333 222222444...444111 1100 •Trade and services are no longer being reported separately. They are included 2. "Other" consists of construction; wholesale and retail trade; finance and in Commercial and other, line 10. insurance; personal and business services; and communication. 1. Anticipated by business. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • June 1990 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period 1988 1989 AAccccoouunntt 11998855 11998866 11998877 Q1 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 12 Other short-term 12.7 17.5 28.0 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 1990 Type 11998877 11998888 11998899 Sept. Oct. Nov. Dec. Jan. Feb. 1 Total 205,810 234,529 257,762 258,851 259,083 257,930 257,762 253,802 252,737 Retail financing of installment sales 2 Automotive 35,782 36,548 38,534 39,258 38,952 38,187 38,534 38,297 38,201 3 Equipment 25,170 28,298 29,781 29,639 29,594 29,568 29,781 29,810 29,808 4 Pools of securitized assets n.a. n.a. 698 755 715 739 698 720 681 Wholesale 5 Automotive 30,507 33,300 34,357 37,243 35,210 33,537 34,357 30,422 28,996 6 Equipment 5,600 5,983 6,945 6,602 6,843 6,933 6,945 7,119 7,234 7 All other 8,342 9,341 9,949 9,957 9,927 9,895 9,949 9,939 9,890 8 Pools of securitized assets2 n.a. n.a. 0 0 0 0 0 0 0 Leasing 9 Automotive 21,952 24,673 26,856 26,865 27,442 27,547 26,856 26,567 27,012 10 Equipment 43,335 57,455 67,506 65,170 66,787 67,677 67,506 67,783 67,468 11 Pools of securitized assets n.a. n.a. 1,247 948 1,199 1,093 1,247 1,242 1,377 12 Loans on commercial accounts receivable and factored commercial accounts receivable 18,078 17,796 18,442 19,611 19,487 18,892 18,442 18,019 18,281 13 All other business credit 17,043 21,134 23,447 22,804 22,926 23,861 23,447 23,884 23,789 Net change (during period) 14 Total 33,750 22,662 21,789 5,029 232 -1,153 -168 -3,960 -1,064 Retail financing of installment sales 15 Automotive 9,767 766 1,988 -97 -305 -765 347 -237 -97 1 1 6 7 E P q o u ol i s p m of e n se t curitized assets2 2 n , . 0 a 5 . 8 n 1, . 3 a 8 . 4 1 - ,4 2 8 6 3 - 6 3 0 8 0 - -4 4 5 0 -2 2 5 4 - 2 4 1 1 3 2 2 2 9 -3 -2 9 Wholesale 18 Automotive 7,497 2,793 1,057 3,677 -2,033 -1,673 820 -3,935 -1,426 19 Equipment 252 226 962 104 242 90 11 174 115 2 2 0 1 A Po ll o o ls t h o e f r securitized assets2 n 1, . 3 a 0 . 9 n. 9 a 9 . 9 609 0 -32 0 -30 0 -32 0 5 0 4 -11 0 -48 0 Leasing 2 2 2 2 3 4 5 2 Lo P A E a o q n u o u s t l o i s o p m n m o o f e c ti n o s v e m t e c u m r e it r i c z i e a d l a a c s c s o et u s n 2 ts receivable and factored 5 2 n , , . 1 1 a 5 2 . 6 5 9 2 n , , . 7 9 a 2 6 . 1 2 8 2 , , 6 1 5 4 8 2 6 4 6 - 9 1 4 8 2 2 4 6 1, 2 5 6 5 1 7 1 8 7 -1 8 1 0 9 0 6 0 5 - - 1 6 1 7 9 5 1 1 4 -2 2 - 9 7 5 0 7 -3 4 1 1 4 3 5 6 5 26 All o c t o h m er m b e u r s c i i n a e l s a s c c c r o e u d n it t s receivable 2 3, , 4 1 8 0 6 0 4 - , 2 0 8 9 2 1 3,7 6 1 4 9 6 -4 2 8 3 7 4 -1 1 2 2 4 2 -5 9 9 3 5 4 - - 4 4 1 5 4 0 -4 4 2 3 2 7 - 2 9 6 5 1 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 1990 IItteemm 11998877 11998888 11998899 July Aug. Sept. Oct. Nov. Dec. Jan. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms 1 Purchase price (thousands of dollars) 137.0 150.0 159.6 174.5 160.8 160.6 153.1 152.8 162.7 148.5 2 Amount of loan (thousands of dollars) 100.5 110.5 117.0 125.3 119.4 118.6 111.3 110.4 119.9 107.3 3 Loan/price ratio (percent) 75.2 75.5 74.5 73.8 75.6 75.3 73.2 73.0 74.4 73.4 4 Maturity (years) 27.8 28.0 28.1 28.6 28.3 28.4 27.3 27.1 27.9 27.1 5 Fees and charges (percent of loan amount)2 2.26 2.19 2.06 2.42 2.31 2.14 1.95 1.81 2.18 1.85 6 Contract rate (percent per year) 8.94 8.81 9.76 10.06 9.83 9.87 9.77 9.78 9.70 9.59 Yield (percent per year) 7 OTS series3 9.31 9.18 10.11 10.48 10.22 10.24 10.11 10.09 10.07 9.91 8 HUD series4 10.17 10.30 10.22 9.70 10.05 10.04 9.79 9.72 9.75 10.00 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (HUD series)5 10.16 10.49 n.a. 9.61 9.95 9.94 9.73 9.69 9.72r 10.01 10 GNMA securities6 9.43 9.83 n.a. 9.55 9.48 9.47 9.21 9.07 n.a. n.a. Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 95,030 101,329 104,974 104,421 105,896 107,052 108,180 109,076 110,721 111,329 12 FHA/VA-insured 21,660 19,762 19,640 19,630 19,589 19,608 19,843 19,953 20,283 20,471 13 Conventional 73,370 81,567 85,335 84,791 86,307 87,444 88,337 89,123 90,438 90,858 Mortgage transactions (during period) 14 Purchases 20,531 23,110 22,518 2,091 2,724 2,223 2,267 2,376 2,982 2,214 Mortgage commitments1 15 Contracted (during period) 25,415 23,435 27,409 2,513 2,842 2,328 2,963 2,536 2,495 1,787 16 Outstanding (end of period) 4,886 2,148 6,037 5,648 5,755 5,865 6,548 6,645 6,037 5,619 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)* 17 Total 12,802 15,105 n.a. 20,533 21,024 20,650 21,342 n.a. n.a. n.a. 18 FHA/VA 686 620 n.a. 585 589 540 588 n.a. n.a. n.a. 19 Conventional 12,116 14,485 n.a. 19,948 20,435 20,110 20,755 n.a. n.a. n.a. Mortgage transactions (during period) 20 Purchases 76,845 44,077 n.a. 5,720 7,283 7,889 7,884 n.a. n.a. n.a. 21 75,082 39,780 73,446 5,180 6,650 8,050 7,058 7,058 8,526 6,845 Mortgage commitments9 22 Contracted (during period) 71,467 66,026 n.a. 6,608 5,705 7,708 7,555 n.a. n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associmajor institutional lender groups; compiled by the Federal Home Loan Bank ation guaranteed, mortgage-backed, fully modified pass-through securities, as- Board in cooperation with the Federal Deposit Insurance Corporation. suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying 2. Includes all fees, commissions, discounts, and "points" paid (by the the prevailing ceiling rate. Monthly figures are averages of Friday figures from the borrower or the seller) to obtain a loan. Wall Street Journal. 3. Average effective interest rates on loans closed, assuming prepayment at the 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. Based on transactions on first day of subsequent month. Large securities swap programs, while the corresponding data for FNMA exclude swap monthly movements in average yields may reflect market adjustments to changes activity. in maximum permissable contract rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • June 1990 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1988 1989 Type of holder, and type of property 11998877 11998888 11998899RR Q4 Q1 Q2 Q3 Q4 1 All holders 2,977,293 3,268,285 3,524,474 3,268,285 3,328,824 3,391,259 3,454,053 3,524,474 2 1- to 4-family 1,959,607 2,189,475 2,384,076 2,189,475 2,230,006 2,281,317 2,331,366 2,384,076 3 Multifamily 273,954 290,355 306,652 290,355 296,139 297,860 302,121 306,652 4 Commercial 654,863 701,652 747,277 701,652 716,695 725,341 733,988 747,277 5 Farm 88,869 86,803 86,468 86,803 85,984 86,741 86,578 86,468 6 Selected financial institutions 1,664,211 1,831,446 1,919,269 1,831,446 1,859,663 1,884,903 1,901,728 1,919,269 7 Commercial banks 591,369 669,160 756,786 669,160 688,662 715,049 737,979 756,786 8 1- to 4-family 276,270 314,283 358,652 314,283 324,681 338,872 349,739 358,652 9 Multifamily 33,330 34,131 36,994 34,131 34,172 34,954 36,075 36,994 10 Commercial 267,340 305,242 343,841 305,242 313,941 324,878 335,296 343,841 11 Farm 14,429 15,504 17,299 15,504 15,868 16,345 16,869 17,299 12 Savings institutions3 860,467 929,647 921,410 929,647 936,091 933,694 927,982 921,410 13 1- to 4-family 602,408 678,263 675,891 678,263 682,658 684,828 680,572 675,891 14 Multifamily 106,359 111,302 108,534 111,302 112,507 110,009 109,353 108,534 15 Commercial 150,943 139,416 136,343 139,416 140,255 138,201 137,406 136,343 16 Farm 757 666 641 666 671 656 651 641 17 Life insurance companies 212,375 232,639 241,073 232,639 234,910 236,160 235,767 241,073 18 1- to 4-family 13,226 15,284 13,531 15,284 12,690 12,745 13,045 13,531 19 Multifamily 22,524 23,562 26,646 23,562 24,636 25,103 25,913 26,646 20 Commercial 166,722 184,124 191,369 184,124 188,073 188,756 187,208 191,369 2 2 2 1 Fin F a a n r c m e companies4 40 9 , ,9 3 0 4 3 9 43 9 , , 5 6 2 6 1 9 5 9 0 , , 5 7 2 2 7 8 43 9 , , 5 6 2 6 1 9 45 9 , , 3 51 8 1 9 47 9 , , 2 5 5 5 1 6 48 9 , ,6 9 0 0 1 6 50 9 , , 7 5 2 2 8 7 23 Federal and related agencies 192,721 200,570 212,370 200,570 199,847 201,909 206,673 212,370 24 Government National Mortgage Association.. 444 26 24 26 26 24 23 24 25 1- to 4-family 25 26 24 26 26 24 23 24 26 Multifamily 419 0 0 0 0 0 0 0 27 Farmers Home Administration 43,051 42,018 42,080 42,018 41,780 40,711 41,117 42,080 28 1- to 4-family 18,169 18,347 19,091 18,347 18,347 18,391 18,405 19,091 29 Multifamily 8,044 8,513 9,168 8,513 8,615 8,778 8,916 9,168 30 Commercial 6,603 5,343 4,463 5,343 5,101 3,885 4,366 4,463 31 Farm 10,235 9,815 9,358 9,815 9,717 9,657 9,430 9,358 32 Federal Housing and Veterans Administration 5,574 5,973 6,220 5,973 6,075 6,424 6,023 6,220 33 1- to 4-family 2,557 2,672 3,009 2,672 2,550 2,827 2,900 3,009 34 Multifamily 3,017 3,301 3,211 3,301 3,525 3,597 3,123 3,211 35 Federal National Mortgage Association 96,649 103,013 110,970 103,013 101,991 103,309 107,052 110,970 36 1- to 4-family 89,666 95,833 102,863 95,833 94,727 95,714 99,168 102,863 37 Multifamily 6,983 7,180 8,107 7,180 7,264 7,595 7,884 8,107 38 Federal Land Banks 34,131 32,115 30,788 32,115 31,261 31,467 30,943 30,788 39 1- to 4-family 2,008 1,890 1,889 1,890 1,839 1,851 1,821 1,889 40 Farm 32,123 30,225 28,899 30,225 29,422 29,616 29,122 28,899 41 Federal Home Loan Mortgage Corporation .. 12,872 17,425 22,289 17,425 18,714 19,974 21,515 22,289 42 1- to 4-family 11,430 15,077 19,182 15,077 16,192 17,305 18,493 19,182 43 Multifamily L,442R 2,348R 3,107 2,348R 2,522R 2,669R 3,022R 3,107 44 Mortgage pools or trusts6 718,297 810,887 931,619 810,887 839,684 861,827 898,388 931,619 45 Government National Mortgage Association.. 317,555 340,527 374,650 340,527 348,622 353,154 361,291 374,650 46 1- to 4-family 309,806 331,257 362,865 331,257 337,563 341,951 349,830 362,865 47 Multifamily 7,749 9,270 11,785 9,270 11,059 11,203 11,461 11,785 48 Federal Home Loan Mortgage Corporation .. 212,634 226,406 266,407 226,406 234,695 242,789 256,896 266,407 49 1- to 4-family 205,977 219,988 259,443 219,988 228,389 236,404 250,123 259,443 50 Multifamily 6,657 6,418 6,965 6,418 6,306 6,385 6,773 6,965 51 Federal National Mortgage Association 139,960 178,250 216,600 178,250 188,071 196,501 208,894 216,600 52 1- to 4-family 137,988 172,331 207,765 172,331 181,352 188,774 200,302 207,765 5 5 3 4 Fa M rm u e lt r i s f a H m o il m y e Administration5 1, 2 9 4 7 5 2 5,9 1 1 0 9 4 8,83 7 5 9 5,9 1 1 0 9 4 6,71 9 9 6 7,72 8 7 5 8,59 7 2 8 8,83 7 5 9 55 1- to 4-family 121 26 23 26 24 23 22 23 56 Multifamily 0 0 0 0 0 0 0 0 57 Commercial 63 38 22 38 34 26 22 22 58 Farm 61 40 34 40 38 36 34 34 59 Individuals and others7 402,064 425,382 461,216 425,382 429,630 442,620 447,264 461,216 60 1- to 4-family 242,053 258,598 285,966 258,598 260,768 272,310 275,694 285,966 61 Multifamily 75,458 78,411 83,299 78,411 78,814 79,840 81,009 83,299 62 Commercial 63,192 67,489 71,239 67,489 69,291 69,595 69,690 71,239 63 Farm 21,361 20,884 20,711 20,884 20,757 20,875 20,871 20,711 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 1990 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998899 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Amounts outstanding (end of period) 1 Total 659,507 716,508 700,849 700,344 703,001 704,371 707,562 712,160 716,508 720,307' 723,723 By major holder 2 Commercial banks , 318,925 334,541 324,438 323,621 326,135 327,327 330,746 332,675 334,541 337,246' 336,932 3 Finance companies 145,180 140,484 146,055 145,488 144,386 144,188 141,273 141,396 140,484 141,481 141,373 4 Credit unions 86,118 89,717 90,073 89,852 90,016 89,892 89,856 89,677 89,717 90,370' 90,730 5 Retailers 43,498 42,744 41,649 41,798 41,989 42,221 42,319 42,554 42,744 42,724 42,851 6 Savings institutions 62,099 57,285 59,920 60,092 59,229 59,883 58,890 58,264 57,285 57,229 56,852 7 Gasoline companies 3,687 3,835 4,017 3,936 3,976 3,886 3,804 3,828 3,835 3,811 3,844 8 Pools of securitized assets4 n.a. 47,902 34,696 35,557 37,270 36,974 40,675 43,766 47,902 47,445' 51,141 By major type of credit 9 Automobile 281,174 289,111 290,192 288,526 288,533 287,754 288,747 289,200 289,111 291,127' 292,016 10 Commercial banks 123,259 127,028 125,592 124,881 126,597 126,759 128,238 128,654 127,028 128,813' 129,442 11 Credit unions 41,326 42,784 42,684 42,624 42,747 42,733 42,761 42,720 42,784 43,096' 43,267 12 Finance companies 97,204 83,572 91,184 90,213 89,439 88,317 84,814 84,707 83,572 83,836 82,913 13 Savings institutions 19,385 17,210 18,032 17,972 17,603 17,990 17,692 17,504 17,210 17,193 17,080 14 Pools of securitized assets4 n.a. 18,517 12,700 12,835 12,147 11,955 15,243 15,615 18,517 18,189 19,314 15 Revolving 174,792 203,175 189,622 191,028 194,398 195,302 196,379 199,240 203,175 203,477' 203,962 16 Commercial banks 117,572 122,364 115,561 115,967 117,012 117,868 118,801 119,254 122,364 122,683' 120,350 17 Retailers 38,692 37,804 36,814 36,963 37,134 37,355 37,435 37,639 37,804 37,810 37,974 18 Gasoline companies 3,687 3,835 4,017 3,936 3,976 3,886 3,804 3,828 3,835 3,811 3,844 19 Savings institutions 10,151 10,698 10,951 11,176 11,206 11,183 10,998 10,881 10,698 10,688 10,618 20 Credit unions 4,691 5,396 5,162 5,192 5,244 5,279 5,319 5,351 5,396 5,435 5,457 21 Pools of securitized assets4 n.a. 23,077 17,117 17,795 19,827 19,731 20,021 22,286 23,077 23,050 25,720 22 Mobile home 25,744 22,558 23,685 23,630 22,938 22,991 22,947 22,567 22,558 22,533' 22,530 23 Commercial banks 8,974 9,019 8,847 8,830 8,808 8,788 8,724 8,941 9,019 8,970' 9,022 24 Finance companies 7,186 4,846 5,674 5,624 5,100 5,087 5,272 4,783 4,846 4,877 4,880 25 Savings institutions 9,583 8,694 9,163 9,176 9,030 9,116 8,951 8,843 8,694 8,685 8,628 26 Other 177,798 201,664 197,349 197,161 197,132 198,324 199,490 201,154 201,664 203,171' 205,215 27 Commercial banks 69,120 76,131 74,438' 73,944r 73,718' 73,912'" 74,983' 75,826' 76,131' 76,780' 78,118 28 Finance companies 40,790 52,066 49,197 49,650 49,847 50,784 51,187 51,906 52,066 52,768 53,580 29 Credit unions 40,102 41,537 42,228 42,036 42,025 41,880 41,776 41,606 41,537 41,839' 42,006 30 Retailers 4,807 4,940 4,834 4,835 4,855 4,866 4,884 4,914 4,940 4,915 4,877 31 Savings institutions 22,981 20,683 21,773 21,769 21,390 21,593 21,249 21,036 20,683 20,663 20,527 32 Pools of securitized assets4 n.a. 6,308 4,879 4,927 5,296 5,288 5,411 5,865 6,308 6,206' 6,107 Net change (during period) 33 Total 51,786 57,001 2,717 -505 2,657 1,371 3,191 4,598 4,347 3,799' 3,416 By major holder 34 Commercial banks 36,015 15,616 1,076 -817 2,514 1,192 3,418 1,930 1,866 22,,770055'' -314 35 Finance companies 4,899 -4,696 532 -567 -1,102 -198 -2,915 124 -913 999988 -109 36 Credit unions 6,031 3,599 184 -222 164 -124 -36 -179 40 653' 359 37 Retailers 2,523 -754 326 149 192 231 98 235 190 -20 127 38 Savings institutions 2,248 -4,814 -1,390 172 -863 654 -993 -626 -980 -56 -376 39 Gasoline companies 69 148 120 -81 39 -89 -82 23 7 -24 33 40 Pools of securitized assets4 n.a. 19,075 1,870 861 1,713 -296 3,701 3,091 4,136 -457' 3,696 By major type of credit 41 Automobile 15,198 7,937 -549 -1,667 7 -779 993 453 -89 2,016' 889 42 Commercial banks 14,058 3,769 474 -711 1,716 162 1,479 416 -1,626 1,785' 629 43 Credit unions 975 1,458 -3 -60 123 -14 28 -40 64 312' 171 44 Finance companies -991 -13,632 208 -970 -775 -1,122 -3,503 -107 -1,135 264 -924 45 Savings institutions 1,157 -2,175 -533 -61 -369 387 -298 -188 -294 -17 -113 46 Pools of securitized assets4 n.a. 3,475 -695 135 -688 -192 3,288 372 2,902 -328 1,125 47 Revolving 20,908 28,383 3,120 1,406 3,370 904 1,076 2,861 3,935 302' 485 48 Commercial banks 18,453 4,792 154 405 1,045 856 933 453 3,110 319' -2,333 49 Retailers 2,303 -888 310 149 171 221 80 205 165 5 164 50 Gasoline companies 69 148 120 -81 39 -89 -82 23 7 -24 33 51 Savings institutions -216 547 -57 225 30 -22 -185 -117 -183 -10 -70 52 Credit unions 300 705 53 30 52 35 40 32 45 39 22 53 Pools of securitized assets4 n.a. 12,588 2,539 678 2,032 -96 290 2,265 791 -27 2,670 54 Mobile home -643 -3,186 -267 -56 -692 53 -44 -380 -9 -26' -2 55 Commercial banks -246 45 -31 -18 -22 -20 -64 218 77 -49' 52 56 Finance companies -576 -2,340 -10 -50 -524 -13 185 -489 63 32 3 57 Savings institutions 177 -889 -227 12 -146 86 -165 -109 -149 -8 -57 58 Other 16,323 23,866 413 -189 -29 1,192 1,166 1,664 510 1,507' 2,044 59 Commercial banks 3,750 7,011 478 -494 -226 194 1,071 843 304 650' 1,338 60 Finance companies 6,466 11,276 334 453 197 937 403 719 159 702 812 61 Credit unions 4,758 1,435 133 -191 -11 -145 -104 -170 -69 302' 166 62 Retailers 221 133 16 0 21 11 18 30 25 -25 -38 63 Savings institutions 1,131 -2,298 -574 -5 -379 203 -344 -212 -354 -20 -136 64 Pools of securitized assets4 n.a. 3,012 26 48 369 -8 123 454 443 -102' -99 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 • June 1990 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1 Percent unless noted otherwise 1989 1990 IItteemm 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks2 1 48-month new car3 10.45 10.85 12.07 12.13 n.a. n.a. 11.94 n.a. n.a. 11.80 2 24-month personal 14.22 14.68 15.44 15.45 n.a. n.a. 15.42 n.a. n.a. 15.27 3 120-month mobile home 13.38 13.54 14.11 14.13 n.a. n.a. 13.97 n.a. n.a. 13.91 4 Credit card 17.92 17.78 18.02 18.07 n.a. n.a. 18.07 n.a. n.a. 18.12 Auto finance companies 5 New car 10.73 12.60 12.62 12.22 12.42 13.04 13.27 13.27 12.64 12.67 6 Used car 14.60 15.11 16.18 16.31 16.22 16.17 16.09 16.10 15.77 15.91 OTHER TERMS4 Maturity (months) 7 New car 53.5 56.2 54.2 52.9 53.1 54.4 55.1 55.1 54.7 54.7 8 Used car 45.2 46.7 46.6 46.2 46.2 45.8 45.6 45.5 45.5 46.4 Loan-to-value ratio 9 New car 93 94 91 90 88 88 89 89 89 88 10 Used car 98 98 97 % 96 % % 96 95 % Amount financed (dollars) 11 New car 11,203 11,663 12,001 11,949 11,841 11,965 12,279 12,301 12,381 12,053 12 Used car 7,420 7,824 7,954 7,874 7,856 7,904 8,063 8,0% 8,040 8,065 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. 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 11998899 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 846.3 831.1 693.2 754.5 695.2 817.5 749.3 734.2 770.6 641.7 693.6 675.1 By sector and instrument 2 U.S. government 223.6 215.0 144.9 157.5 149.8 113.7 162.5 142.1 199.9 70.9 149.0 179.4 3 Treasury securities 223.7 214.7 143.4 140.0 150.0 106.0 141.6 100.5 201.1 65.8 149.1 184.0 4 Agency issues and mortgages -.1 .4 1.5 17.4 -.2 7.7 20.9 41.6 -1.2 5.1 -.2 -4.6 5 Private domestic nonfinancial sectors 622.7 616.1 548.3 597.1 545.4 703.8 586.8 592.2 570.6 570.8 544.7 495.7 6 Debt capital instruments 451.4 460.3 458.5 454.6 393.8 551.0 458.8 432.4 418.0 396.9 374.8 385.6 7 Tax-exempt obligations 135.4 22.7 34.1 34.0 24.2 37.9 34.8 34.3 29.3 23.0 32.2 12.4 8 Corporate bonds 73.8 121.3 99.9 114.1 114.2 135.2 110.9 98.4 100.0 127.9 102.4 126.4 9 Mortgages 242.2 316.3 324.5 306.5 255.5 377.9 313.1 299.7 288.7 246.1 240.2 246.9 10 Home mortgages 156.8 218.7 234.9 231.0 196.1 299.8 230.9 214.0 206.6 197.6 180.6 199.8 11 Multifamily residential 29.8 33.5 24.4 16.7 15.8 14.5 19.4 17.3 27.4 7.9 19.0 8.7 12 Commercial 62.2 73.6 71.6 60.8 43.9 65.2 65.4 67.7 59.1 38.5 40.6 37.3 13 Farm -6.6 -9.5 -6.4 -2.1 -.3 -1.6 -2.6 .7 -4.4 2.1 .0 1.0 14 Other debt instruments 171.3 155.8 89.7 142.5 151.6 152.8 128.0 159.8 152.6 173.9 169.9 110.0 15 Consumer credit 82.5 58.0 32.9 51.1 46.1 51.9 35.5 73.1 34.8 46.0 34.5 69.2 16 Bank loans n.e.c 38.6 66.7 10.8 38.4 33.0 58.8 7.3 66.6 23.1 29.9 59.0 20.0 17 Open market paper 14.6 -9.3 2.3 11.6 20.8 6.8 17.1 20.0 41.4 39.2 16.7 -14.3 18 Other 35.6 40.5 43.8 41.5 51.7 35.2 68.0 .1 53.3 58.7 59.7 35.1 19 By borrowing sector 622.7 616.1 548.3 597.1 545.4 703.8 586.8 592.2 570.6 570.8 544.7 495.7 20 State and local governments 90.9 36.2 33.6 29.8 24.7 37.0 28.1 30.6 29.7 27.6 29.5 11.9 71 Households 284.6 289.2 271.9 289.8 258.5 346.2 291.4 283.5 264.5 239.4 258.4 271.9 ??. Nonfinancial business 247.2 290.7 242.8 277.5 262.2 320.6 267.3 278.0 276.4 303.7 256.8 211.9 n Farm -14.5 -16.3 -10.6 -7.5 .3 -3.3 -2.2 -11.8 -2.2 .2 4.7 -1.5 24 Nonfarm noncorporate 129.3 103.2 107.9 87.4 65.9 83.6 100.5 80.4 85.9 65.8 67.2 44.7 25 Corporate 132.4 203.7 145.5 197.5 196.0 240.3 169.0 209.4 192.8 237.7 184.9 168.7 26 Foreign net borrowing in United States 1.2 9.7 4.9 6.9 8.0 5.4 4.1 13.3 -1.1 -1.9 24.3 10.6 7.7 Bonds 3.8 3.1 7.4 6.9 5.1 2.6 5.9 5.1 3.2 10.7 8.4 -1.9 28 Bank loans n.e.c -2.8 -1.0 -3.6 -1.8 1.0 -3.3 .0 -5.7 4.9 1.7 -1.2 -1.4 29 Open market paper 6.2 11.5 2.1 9.6 12.3 6.5 10.3 21.0 12.1 -8.1 20.4 24.9 30 U.S. government loans -6.0 -3.9 -1.0 -7.8 -10.5 -.4 -12.1 -7.1 -21.4 -6.3 -3.3 -10.9 31 Total domestic plus foreign 847.5 840.9 698.1 761.4 703.2 822.9 753.3 747.6 769.5 639.8 718.0 685.7 Financial sectors 32 Total net borrowing by financial sectors 201.3 318.9 315.0 246.5 201.5 245.9 216.3 302.5 384.0 119.0 141.1 161.9 By instrument 33 U.S. government related 101.5 187.9 185.8 119.8 140.4 86.3 128.6 156.7 205.7 101.4 129.7 124.8 34 Sponsored credit agency securities 20.6 15.2 30.2 44.9 25.0 11.1 46.5 62.3 84.9 12.5 10.0 -7.4 35 Mortgage pool securities 79.9 173.1 156.4 74.9 115.4 75.1 82.1 94.4 120.8 88.9 119.6 132.2 36 Loans from U.S. government 1.1 -.4 -.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 37 Private financial sectors 99.7 131.0 129.2 126.7 61.1 159.6 87.7 145.8 178.3 17.6 11.4 37.1 38 Corporate bonds 50.9 82.9 78.9 51.7 38.7 71.1 32.5 43.0 52.7 31.4 25.5 45.0 39 Mortgages .1 .1 .4 .3 -.1 .1 -.1 1.2 .3 .0 .0 -.5 40 Bank loans n.e.c 2.6 4.0 -3.3 1.4 1.3 5.7 -5.6 -.3 3.0 .3 1.7 .1 41 Open market paper 32.0 24.2 28.8 53.6 32.2 70.5 35.1 70.4 53.2 2.8 27.9 44.9 42 Loans from Federal Home Loan Banks 14.2 19.8 24.4 19.7 -11.0 12.3 25.8 31.4 69.1 -16.9 -43.7 -52.4 By sector 43 201.3 318.9 315.0 246.5 201.5 245.9 216.3 302.5 384.0 119.0 141.1 161.9 44 Sponsored credit agencies 21.7 14.9 29.5 44.9 25.0 11.1 46.5 62.3 84.9 12.5 10.0 -7.4 45 Mortgage pools 79.9 173.1 156.4 74.9 115.4 75.1 82.1 94.4 120.8 88.9 119.6 132.2 46 Private financial sectors 99.7 131.0 129.2 126.7 61.1 159.6 87.7 145.8 178.3 17.6 11.4 37.1 47 Commercial banks -4.9 -3.6 7.1 -3.9 .7 -1.6 -.9 3.7 -13.4 -.9 12.3 4.7 48 Bank affiliates 16.6 15.2 14.3 5.2 7.5 22.4 6.1 .8 6.4 6.5 16.5 .8 49 Savings and loan associations 17.3 20.9 19.6 19.9 -14.6 19.1 24.1 26.3 71.3 -16.2 -48.3 -65.2 50 Mutual savings banks 1.5 4.2 8.1 1.9 -1.6 1.1 .5 3.8 -2.8 -1.1 -3.3 .8 51 Finance companies 57.2 54.5 40.3 67.0 49.0 85.4 40.7 63.6 78.4 32.8 29.7 55.0 52 REITs .5 1.0 .8 4.1 -1.2 1.7 -5.9 15.0 -.9 -2.2 -1.4 -.4 53 SCO Issuers 11.5 39.0 39.1 32.5 21.3 31.5 23.1 32.5 39.3 -1.4 5.9 41.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • June 1990 1.57—Continued 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 11998899 Q2 Q3 Q4 Ql Q2 Q3 Q4 All sectors 54 Total net borrowing 1,048.8 1,159.8 1,013.2 1,007.9 904.7 1,068.8 969.7 1,050.1 1,153.4 758.8 859.1 847.6 55 U.S. government securities 324.2 403.4 331.5 277.2 290.2 200.0 291.1 298.8 405.6 172.3 278.6 304.2 56 State and local obligations 135.4 22.7 34.1 34.0 24.2 37.9 34.8 34.3 29.3 23.0 32.2 12.4 57 Corporate and foreign bonds 128.4 207.3 186.3 172.7 157.9 208.8 149.3 146.4 155.9 170.0 136.3 169.5 58 Mortgages 242.2 316.4 324.9 306.7 255.4 378.0 313.0 300.8 289.0 246.1 240.3 246.4 59 Consumer credit 82.5 58.0 32.9 51.1 46.1 51.9 35.5 73.1 34.8 46.0 34.5 69.2 60 Bank loans n.e.c 38.3 69.7 3.8 38.0 35.3 61.2 1.7 60.7 31.1 31.9 59.6 18.7 61 Open market paper 52.8 26.4 33.2 74.9 65.3 83.9 62.5 111.5 106.8 34.0 65.0 55.5 62 Other loans 45.0 56.1 66.5 53.4 30.2 47.1 81.7 24.4 101.0 35.5 12.7 -28.2 63 MEMO: U.S. government, cash balance 14.4 .0 -7.9 10.4 -10.7 1.2 10.6 -17.9 -22.5 43.7 -16.6 -47.5 Totals net of changes in U.S. government cash balances 64 Net borrowing by domestic nonfinancial 831.9 831.2 701.1 744.2 706.0 816.3 738.6 752.2 793.1 598.0 710.2 722.6 65 Net borrowing by U.S. government 209.3 215.0 152.8 147.1 160.5 112.5 151.8 160.0 222.4 27.2 165.6 227.0 External corporate equity funds raised in United States 66 Total net share issues 20.1 90.5 14.3 -117.9 -60.9 -133.7 -73.5 -163.5 -163.9 -48.8 -40.8 10.0 67 Mutual funds 84.4 159.0 71.6 -.7 38.2 -6.6 1.5 11.9 3.6 24.0 54.3 70.9 68 All other -64.3 -68.5 -57.3 -117.2 -99.0 -127.0 -75.0 -175.4 -167.4 -72.7 -95.1 -60.9 69 Nonfinancial corporations -81.5 -80.8 -76.5 -130.5 -130.8 -140.0 -92.0 -195.0 -180.0 -105.0 -145.0 -93.0 /0 Financial corporations 13.5 11.1 21.4 12.4 14.1 19.0 14.6 13.5 9.0 17.3 16.0 14.0 71 Foreign shares purchased in United States 3.7 1.2 -2.1 .9 17.7 -6.0 2.4 6.1 3.6 15.0 33.9 18.2 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. 1988' 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998855 11998866 11998877 11998888 11998899 Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 846.3 831.1 693.2 754.5 695.2 817.5 749.3 734.2 770.6 641.7 693.6 675.1 By public agencies and foreign 2 Total net advances 202.0 314.0 262.8 215.5 202.8 167.5 181.2 255.8 326.4 -1.1 255.0 230.7 3 U.S. government securities 45.9 69.4 70.1 85.0 45.9 43.3 24.1 119.6 97.6 -103.9 130.2 59.5 4 Residential mortgages 94.6 170.1 153.2 86.3 129.7 89.9 82.4 105.5 122.9 102.2 139.3 154.3 5 FHLB advances to thrifts 14.2 19.8 24.4 19.7 -11.0 12.3 25.8 31.4 69.1 -16.9 -43.7 -52.4 6 Other loans and securities 47.3 54.7 15.1 24.4 38.2 22.1 49.0 -.7 36.8 17.6 29.2 69.4 Total advanced, by sector 7 U.S. government 17.8 9.7 -7.9 -9.4 -.9 -7.6 4.3 -27.1 -2.4 -3.7 -5.6 8.1 8 Sponsored credit agencies 103.5 187.2 183.4 112.0 127.4 87.7 114.4 152.8 211.0 11.2 157.9 129.5 9 Monetary authorities 18.4 19.4 24.7 10.5 -7.3 5.0 15.5 18.9 5.2 -3.9 -30.7 .1 10 Foreign 62.3 97.8 62.7 102.3 83.6 82.5 47.0 111.2 112.5 -4.6 133.3 93.0 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 101.5 187.9 185.8 119.8 140.4 86.3 128.6 156.7 205.7 101.4 129.7 112244..88 12 Foreign 1.2 9.7 4.9 6.9 8.0 5.4 4.1 13.3 -1.1 -1.9 24.3 10.6 Private domestic funds advanced 13 Total net advances 747.0 714.8 621.1 665.8 640.8 741.6 700.8 648.5 648.8 742.2 592.6 579.7 14 U.S. government securities 278.2 333.9 261.4 192.2 244.3 156.7 267.0 179.3 308.0 276.2 148.5 244.7 15 State and local obligations 135.4 22.7 34.1 34.0 24.2 37.9 34.8 34.3 29.3 23.0 32.2 12.4 16 Corporate and foreign bonds 40.8 84.2 87.5 97.6 98.3 117.5 86.8 66.5 80.5 131.0 103.8 78.0 17 Residential mortgages 91.8 82.0 106.1 161.3 82.2 224.5 167.9 125.8 111.1 103.3 60.4 54.2 18 Other mortgages and loans 214.8 211.8 156.5 200.3 180.7 217.4 170.0 274.0 188.9 191.8 204.2 138.0 19 LESS: Federal Home Loan Bank advances 14.2 19.8 24.4 19.7 -11.0 12.3 25.8 31.4 69.1 -16.9 -43.7 -52.4 Private financial intermediation 20 Credit market funds advanced by private financial institutions 579.9 744.0 560.8 561.2 492.4 553.6 429.1 634.9 600.6 492.1 308.7 568.5 21 Commercial banking 186.0 197.5 136.8 155.3 171.6 194.5 118.4 220.5 120.6 158.6 166.6 240.6 22 Savings institutions 87.9 107.6 136.8 120.4 -75.3 135.0 156.9 94.0 62.6 -100.2 -136.3 -127.2 23 Insurance and pension funds 154.4 174.6 210.9 198.0 177.1 182.5 152.2 190.1 257.1 162.7 121.6 166.9 24 Other finance 151.6 264.2 76.3 87.4 219.1 41.6 1.7 130.3 160.4 271.1 156.8 288.2 25 Sources of funds 579.9 744.0 560.8 561.2 492.4 553.6 429.1 634.9 600.6 492.1 308.7 568.5 26 Private domestic deposits and RPs 214.3 262.6 144.1 219.9 215.1 103.5 191.3 277.9 146.8 186.8 271.9 254.7 27 Credit market borrowing 99.7 131.0 129.2 126.7 61.1 159.6 87.7 145.8 178.3 17.6 11.4 37.1 28 Other sources 265.9 350.4 287.5 214.6 216.3 290.5 150.1 211.2 275.5 287.7 25.3 276.6 29 Foreign funds 19.7 12.9 43.7 9.3 -1.1 94.5 -41.5 45.2 -28.6 -19.4 22.7 20.9 30 Treasury balances 10.3 1.7 -5.8 7.3 -8.3 -16.3 5.6 -4.1 -21.6 26.6 -15.0 -23.1 31 Insurance and pension reserves 131.9 149.3 176.1 177.6 143.7 176.0 87.3 253.9 187.9 123.1 33.8 229.8 32 Other, net 104.1 186.5 73.6 20.4 82.0 36.4 98.8 -83.7 137.7 157.3 -16.2 49.1 Private domestic nonfinancial investors 33 Direct lending in credit markets 266.8 101.8 189.6 231.3 209.5 347.6 359.3 159.4 226.5 267.7 295.4 48.4 34 U.S. government securities 157.8 60.9 100.0 131.8 141.6 78.0 209.3 140.5 194.7 126.8 164.6 80.4 35 State and local obligations 37.7 -21.7 45.6 33.9 14.7 37.4 56.0 22.1 35.8 -9.1 33.0 -.9 36 Corporate and foreign bonds 4.2 39.3 24.1 -4.1 11.3 63.2 -6.1 -29.4 -34.7 72.5 8.9 -1.5 37 Open market paper 47.5 5.4 6.6 37.2 17.3 95.0 75.6 -1.3 50.4 16.3 63.8 -61.2 38 Other 19.6 17.9 13.3 32.6 24.6 74.0 24.5 27.4 -19.7 61.3 25.1 31.5 39 Deposits and currency 224.6 283.0 160.2 222.5 236.4 111.4 215.1 248.7 192.0 226.2 248.1 279.4 40 Currency 12.4 14.4 19.0 14.7 12.5 13.8 29.3 5.1 19.3 12.6 9.1 9.0 41 Checkable deposits 41.9 95.0 -3.0 12.4 6.8 -30.2 -22.3 97.8 -56.3 -91.4 -2.9 178.0 42. Small time and savings accounts 138.5 120.6 76.0 122.8 105.1 131.8 73.1 86.1 23.7 114.5 124.0 158.4 43 Money market fund shares 8.9 38.3 27.2 22.8 85.2 -21.0 -3.5 58.1 51.1 111.8 124.3 53.6 44 Large time deposits 7.4 -11.4 26.7 40.7 2.3 -3.6 136.9 12.6 96.8 24.4 14.6 -126.7 45 Security RPs 17.7 20.2 17.2 21.2 15.6 26.5 7.0 23.3 31.6 27.5 12.0 -8.6 46 Deposits in foreign countries -2.1 5.9 -2.8 -12.1 8.9 -5.9 -5.5 -34.4 25.9 26.8 -32.9 15.7 47 Total of credit market instruments, deposits, and currency 491.4 384.8 349.8 453.8 445.9 459.1 574.4 408.1 418.5 493.9 543.5 327.8 48 Public holdings as percent of total 23.8 37.3 37.6 28.3 28.8 20.4 24.1 34.2 42.4 -.2 35.5 33.7 49 Private financial intermediation (in percent) 77.6 104.1 90.3 84.3 76.8 74.7 61.2 97.9 92.6 66.3 52.1 98.1 50 Total foreign funds 82.0 110.7 106.4 111.6 82.5 177.0 5.4 156.4 83.9 -24.0 156.0 113.9 MEMO: Corporate equities not included above 51 Total net issues 20.1 90.5 14.3 -117.9 -60.9 -133.7 -73.5 -163.5 -163.9 -48.8 -40.8 10.0 57. Mutual fund shares 84.4 159.0 71.6 -.7 38.2 -6.6 1.5 11.9 3.6 24.0 54.3 70.9 53 Other equities -64.3 -68.5 -57.3 -117.2 -99.0 -127.0 -75.0 -175.4 -167.4 -72.7 -95.1 -60.9 54 Acquisitions by financial institutions 45.6 53.7 21.4 .5 5.7 -.6 13.2 20.9 -1.1 -8.4 -7.0 39.3 55 Other net purchases -25.5 36.8 -7.1 -118.4 -66.6 -133.1 -86.7 -184.4 -162.8 -40.4 -33.8 -29.4 NOTES BY LINE NUMBER. 31. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.57. 32. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 33. Line 13 less line 20 plus line 27. 6. Includes farm and commercial mortgages. 34-38. Lines 14-18 less amounts acquired by private finance plus amounts 11. Credit market funds raised by federally sponsored credit agencies, and net borrowed by private finance. Line 38 includes mortgages. issues of federally related mortgage pool securities. 40. Mainly an offset to line 9. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. Also sum of lines 28 and 47 less lines 40 and 46. 48. Line 2/line 1. 18. Includes farm and commercial mortgages. 49. Line 20/line 13. 26. Line 39 less lines 40 and 46. 50. Sum of lines 10 and 29. 27. Excludes equity issues and investment company shares. Includes line 19. 51. 53. Includes issues by financial institutions. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates, less outstanding may be obtained from Flow of Funds Section, Division of Research claims on foreign affiliates and deposits by banking in foreign banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 30. Demand deposits and note balances at commercial banks. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 DomesticN onfinancial Statistics • June 1990 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING Billions of dollars; period-end levels. 1988 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11998855 11998866 11998877 11998888 Q2 Q3 Q4 Ql Q2 Q3 Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 6,795.1 7,631.2 8,335.0 9,080.8 8,682.6 8,856.6 9,080.8 9,246.2 9,413.0 9,591.5 9,790.1 By sector and instrument 2 U.S. government 1,600.4 1,815.4 1,960.3 2,117.8 2,022.3 2,063.9 2,117.8 2,155.7 2,165.7 2,204.3 2,267.6 3 Treasury securities 1,597.1 1,811.7 1,955.2 2,095.2 2,015.3 2,051.7 2,095.2 2,133.4 2,142.1 2,180.7 2,245.2 4 Agency issues and mortgages 3.3 3.6 5.2 22.6 7.0 12.2 22.6 22.3 23.6 23.5 22.4 5 Private domestic nonfinancial sectors 5,194.7 5,815.8 6,374.7 6,963.1 6,660.4 6.792.7 6,963.1 7,090.5 7,247.3 7,387.3 7,522.5 6 Debt capital instruments 3,485.5 3,957.5 4.428.0 4,881.8 4,648.4 4,763.3 4,881.8 4.973.4 5,073.3 5,173.3 5,275.7 7 Tax-exempt obligations 655.5 679.1 713.2 759.8 727.2 746.1 759.8 764.7 769.9 780.8 784.0 8 Corporate bonds 542.9 664.2 764.1 878.2 825.9 853.6 878.2 903.2 935.2 960.7 992.3 9 Mortgages 2.287.1 2,614.2 2,950.7 3.243.8 3,095.3 3,163.6 3.243.8 3.305.5 3,368.2 3,431.7 3,499.3 10 Home mortgages 1.490.2 1,720.8 1.943.1 2.173.9 2,055.1 2.117.8 2.173.9 2,215.4 2,266.8 2,317.3 2,370.1 11 Multifamily residential 213.0 246.2 270.0 286.7 276.6 281.0 286.7 292.6 294.4 298.8 302.5 12 Commercial 478.1 551.4 648.7 696.4 675.9 677.9 696.4 711.5 720.3 729.0 740.2 13 Farm 105.9 95.8 88.9 86.8 87.8 87.0 86.8 86.0 86.7 86.6 86.5 14 Other debt instruments 1,709.3 1,858.4 1,946.7 2,081.3 2,012.0 2,029.4 2,081.3 2,117.0 2,174.0 2,214.0 2,246.8 15 Consumer credit 601.8 659.8 692.7 743.7 705.8 721.2 743.7 745.0 761.0 776.2 797.9 16 Bank loans n.e.c 592.7 656.1 664.3 702.6 687.2 687.7 702.6 717.6 729.8 743.8 745.6 17 Open market paper 72.2 62.9 73.8 85.4 77.8 80.3 85.4 96.1 110.1 113.3 107.1 18 Other 442.6 479.6 516.0 549.5 541.1 540.2 549.5 558.3 573.2 580.7 596.2 19 By borrowing sector 5,194.7 5,815.8 6,374.7 6,963.1 6,660.4 6,792.7 6,963.1 7.090.5 7,247.3 7,387.3 7,522.5 20 State and local governments.... 473.9 510.1 543.7 573.5 556.0 565.7 573.5 578.5 584.8 595.1 598.2 21 Households 2.295.5 2,591.8 2,864.5 3,151.7 2,989.9 3,068.0 3,151.7 3,206.1 3,269.2 3,342.1 3,423.2 22 Nonfinancial business 2,425.4 2,714.0 2.966.5 3,237.9 3,114.4 3,159.0 3,237.9 3,305.9 3,393.2 3.450.1 3,501.1 23 Farm 173.4 156.6 145.5 137.6 143.9 143.6 137.6 135.9 139.5 141.2 137.9 24 Nonfarm noncorporate 898.3 1,001.6 1,109.4 1,200.9 1,151.9 1,172.6 1,200.9 1,223.3 1,239.1 1.251.2 1,266.8 25 Corporate 1.353.6 1,555.8 1.711.6 1,899.4 1,818.6 1,842.9 1,899.4 1.946.6 2,014.7 2,057.8 2,096.4 26 Foreign credit market debt held in United States 234.7 236.4 242.9 249.8 245.9 246.1 249.8 249.8 249.4 254.6 257.6 27 Bonds 71.8 74.9 82.3 89.2 86.0 87.4 89.2 90.5 92.1 94.2 94.3 28 Bank loans n.e.c 27.9 26.9 23.3 21.5 22.4 22.7 21.5 21.6 22.7 22.6 22.5 29 Open market paper 33.9 37.4 41.2 50.9 44.0 46.3 50.9 54.9 52.7 57.5 63.0 30 U.S. government loans 101.1 97.1 96.1 88.3 93.5 89.8 88.3 82.8 81.9 80.3 77.8 31 Total domestic plus foreign 7,029.9 7,867.6 8,578.0 9,330.7 8,928.5 9,102.8 9,330.7 9,496.0 9,662.4 9,846.1 10,047.7 Financial sectors 32 Total credit market debt owed by financial sectors 1,213.2 1,563.6 1,885.5 2,084.1 1,942.8 1,996.5 2,084.1 2,190.5 2,229.6 2,264.5 2,318.1 By instrument 33 U.S. government related 632.7 844.2 1,026.5 1,098.4 1,019.2 1,054.6 1,098.4 1,140.8 1,166.5 1,202.6 1,238.7 34 Sponsored credit agency securities 257.8 273.0 303.2 348.1 317.9 328.5 348.1 364.3 369.0 370.4 373.1 35 Mortgage pool securities 368.9 565.4 718.3 745.3 696.3 721.1 745.3 771.5 792.5 827.2 860.7 36 Loans from U.S. government 6.1 5.7 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 37 Private financial sectors 580.5 719.5 859.0 985.7 923.6 941.9 985.7 1,049.7 1,063.1 1,062.0 1,079.3 38 Corporate bonds 204.5 287.4 366.3 418.0 397.9 406.4 418.0 458.2 465.8 472.5 484.6 39 Mortgages 2.7 2.7 3.1 3.4 3.1 3.1 3.4 3.5 3.5 3.5 3.3 40 Bank loans n.e.c 32.1 36.1 32.8 34.2 34.3 32.9 34.2 32.2 33.8 34.1 35.5 41 Open market paper 252.4 284.6 323.8 377.4 353.4 358.0 377.4 392.0 398.3 400.8 414.1 42 Loans from Federal Home Loan Banks 88.8 108.6 133.1 152.8 134.8 141.6 152.8 163.8 161.9 151.1 141.8 43 Total, by sector 1,213.2 1,563.6 1,885.5 2,084.1 1,942.8 1,996.5 2,084.1 2,190.5 2,229.6 2,264.5 2,318.1 44 Sponsored credit agencies 263.9 278.7 308.2 353.1 322.9 333.5 353.1 369.3 374.0 375.4 378.1 45 Mortgage pools 368.9 565.4 718.3 745.3 696.3 721.1 745.3 771.5 792.5 827.2 860.7 46 Private financial sectors 580.5 719.5 859.0 985.7 923.6 941.9 985.7 1,049.7 1,063.1 1,062.0 1,079.3 47 Commercial banks 79.2 75.6 82.7 78.8 77.2 76.6 78.8 73.3 74.5 77.0 79.4 48 Bank affiliates 106.2 116.8 131.1 136.2 136.3 136.3 136.2 140.0 141.2 143.9 143.8 49 Savings and loan associations 98.9 119.8 139.4 159.3 141.9 148.1 159.3 170.1 167.9 155.7 144.7 50 Mutual savings banks 4.4 8.6 16.7 18.6 17.6 18.1 18.6 17.8 17.7 17.5 17.1 51 Finance companies 261.2 328.1 378.8 445.8 419.8 427.7 445.8 463.8 478.0 483.0 499.2 52 REITs 5.6 6.5 7.3 11.4 9.1 7.6 11.4 11.1 10.6 10.3 10.2 53 SCO issuers 25.0 64.0 103.1 135.7 121.8 127.5 135.7 173.5 173.1 174.6 185.0 All sectors 54 Total credit market debt 8,243.1 9,431.2 10,463.4 11,414.8 10,871.3 11,099.3 11,414.8 11,686.5 11,892.0 12,110.7 12,365.7 55 U.S. government securities 2,227.0 2,653.8 2,981.8 3,211.1 3,036.4 3,113.5 3,211.1 3,291.5 3,327.2 3,401.8 3,501.3 56 State and local obligations 655.5 679.1 713.2 759.8 727.2 746.1 759.8 764.7 769.9 780.8 784.0 57 Corporate and foreign bonds 819.2 1,026.4 1,212.7 1,385.4 1,309.8 1,347.4 1,385.4 1,451.9 1,493.1 1,527.5 1,571.3 58 Mortgages 2,289.8 2,617.0 2,953.8 3,247.2 3,098.5 3,166.7 3,247.2 3,309.0 3,371.7 3,435.2 3,502.6 59 Consumer credit 601.8 659.8 692.7 743.7 705.8 721.2 743.7 745.0 761.0 776.2 797.9 60 Bank loans n.e.c 652.7 719.1 720.3 758.3 744.0 743.3 758.3 771.4 786.2 800.5 803.6 61 Open market paper 358.5 384.9 438.8 513.6 475.3 484.6 513.6 543.1 561.1 571.6 584.2 62 Other loans 638.6 691.1 750.2 795.6 774.4 776.5 795.6 809.9 821.9 817.1 820.8 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. 1988r 1989 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11998855 11998866 11998877 11998888 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Total funds advanced in credit markets to domestic nonfinancial sectors 6,795.1 7,631.2 8,335.0 9,080.8 8,682.6 8,856.6 9,080.8 9,246.2 9,413.0 9,591.5 9,790.1 By public agencies and foreign 2, Total held 1,460.5 1,794.7 2,044.9 2,196.5 2,093.6 2,130.2 2,196.5 2,256.3 22,,226622..55 22,,332288..66 22,,339944..33 3 U.S. government securities 423.8 493.2 563.3 648.3 610.1 613.3 648.3 666.2 644.2 673.6 694.2 4 Residential mortgages 518.2 712.3 862.0 900.4 848.3 873.3 900.4 927.1 951.2 990.9 1,030.1 5 FHLB advances to thrifts 88.8 108.6 133.1 152.8 134.8 141.6 152.8 163.8 161.9 151.1 141.8 6 Other loans and securities 429.7 480.5 486.6 495.0 500.3 502.1 495.0 499.3 505.1 513.0 528.2 7 Total held, by type of lender 1,460.5 1,794.7 2,044.9 2,196.5 2,093.6 2,130.2 2,196.5 2,256.3 2,262.5 2,328.6 2,394.3 8 U.S. government 246.7 253.3 238.0 212.7 235.8 226.3 212.7 208.0 207.7 206.7 206.8 9 Sponsored credit agencies and mortgage pools ... 659.8 869.8 1,048.9 1,113.0 1,037.9 1,071.2 1,113.0 1,155.3 1,159.6 1,204.1 1,240.4 10 Monetary authority 186.0 205.5 230.1 240.6 229.7 230.8 240.6 235.4 238.4 227.6 233.3 11 Foreign 367.9 466.1 527.9 630.3 590.2 601.9 630.3 657.6 656.8 690.2 713.8 Agency and foreign debt not in line 1 12 Sponsored credit agencies and mortgage pools ... 632.7 844.2 1,026.5 1,098.4 1,019.2 1,054.6 1,098.4 1,140.8 1,166.5 11,,220022..66 11,,223388..77 13 Foreign 234.7 236.4 242.9 249.8 245.9 246.1 249.8 249.8 249.4 254.6 257.6 Private domestic holdings 14 Total private holdings 6,202.1 6,917.1 7,559.5 8,232.5 7,854.1 8,027.2 8,232.5 8,380.4 8,566.4 8,720.2 8,892.1 15 U.S. government securities 1,803.2 2,160.6 2,418.5 2,562.8 2,426.4 2,500.3 2,562.8 2,625.3 2,683.0 2,728.2 2,807.2 16 State and local obligations 655.5 679.1 713.2 759.8 727.2 746.1 759.8 764.7 769.9 780.8 784.0 17 Corporate and foreign bonds 517.6 601.3 689.6 787.2 748.9 770.6 787.2 808.6 840.0 865.9 885.6 18 Residential mortgages 1,185.1 1,254.7 1,351.1 1,560.2 1,483.3 1,525.5 1,560.2 1,581.0 1,610.0 1,625.3 1,642.5 19 Other mortgages and loans 2,129.7 2,330.0 2,520.1 2,715.2 2,603.2 2,626.3 2,715.2 2,764.6 2,825.4 2,871.1 2,914.7 20 LESS: Federal Home Loan Bank advances 88.8 108.6 133.1 152.8 134.8 141.6 152.8 163.8 161.9 151.1 141.8 Private financial intermediation 21 Credit market claims held by private financial institutions 5,283.1 6,025.7 6,604.6 7,167.5 6,903.0 7,002.7 7,167.5 7,310.3 7,456.5 7,537.9 7,676.6 2? Commercial banking 1,978.9 2,176.3 2,313.1 2,468.4 2,382.6 2,421.6 2,468.4 2,490.9 2,538.2 2,588.6 2,640.0 23 Savings institutions 1,191.2 1,297.9 1,445.5 1,567.7 1,505.5 1,535.2 1,567.7 1,567.3 1,551.1 1,521.1 1,491.0 24 Insurance and pension funds 1,369.7 1,544.3 1,755.2 1,953.3 1,861.4 1,901.9 1,953.3 2,007.0 2,051.1 2,085.0 2,130.3 25 Other finance 743.4 1,007.1 1,090.7 1,178.1 1,153.5 1,144.0 1,178.1 1,245.1 1,316.1 1,343.2 1,415.2 76 Sources of funds 5,283.1 6,025.7 6,604.6 7,167.5 6,903.0 7,002.7 7,167.5 7,310.3 7,456.5 7,537.9 7,676.6 27 Private domestic deposits and RPs 2,930.0 3,188.4 3,324.8 3,560.2 3,438.6 3,480.0 3,560.2 3,589.0 3,639.0 3,702.4 3,775.3 28 Credit market debt 580.5 719.5 859.0 985.7 923.6 941.9 985.7 1,049.7 1,063.1 1,062.0 1,079.3 79 Other sources 1,772.7 2,117.9 2,420.8 2,621.5 2,540.7 2,580.7 2,621.5 2,671.6 2,754.4 2,773.6 2,822.0 30 Foreign funds 5.6 18.6 62.2 71.5 62.2 52.0 71.5 61.8 50.0 55.7 70.4 31 Treasury balances 25.8 27.5 21.6 29.0 32.6 34.2 29.0 13.5 34.4 30.3 20.7 37. Insurance and pension reserves 1,289.4 1,427.9 1,597.2 1,761.8 1,692.5 1,722.3 1,761.8 1,811.1 1,843.8 1,861.9 1,898.5 33 Other, net 451.8 643.9 739.6 759.2 753.5 772.4 759.2 785.2 826.2 825.7 832.3 Private domestic nonfinancial investors 34 Credit market claims 1,499.5 1,610.8 1,813.9 2,050.7 1,874.8 1,966.4 2,050.7 2,119.9 2,173.1 2,244.2 2,294.9 35 U.S. government securities 814.7 899.1 992.0 1,077.8 962.4 1,022.3 1,077.8 1,105.2 1,127.4 1,177.5 1,219.4 36 Tax-exempt obligations 231.9 211.2 256.8 303.7 270.3 289.0 303.7 307.2 308.8 315.6 318.4 37 Corporate and foreign bonds 38.0 77.8 102.2 93.9 104.8 106.1 93.9 125.3 135.4 140.6 134.6 38 Open market paper 131.0 136.4 160.7 200.9 177.4 185.8 200.9 209.4 218.7 224.7 223.5 39 Other 283.8 286.2 302.3 374.5 359.9 363.2 374.5 372.8 382.8 385.9 399.0 40 Deposits and currency 3,120.4 3,399.2 3,553.9 3,791.9 3,668.5 3,710.3 3,791.9 3,824.0 3,887.8 3,939.6 4,028.4 41 Currency 171.9 186.3 205.4 220.1 209.9 213.4 220.1 220.7 226.4 224.4 232.6 47, Checkable deposits 422.5 517.4 514.0 525.3 510.4 495.9 525.3 492.3 493.8 485.1 532.2 43 Small time and savings accounts 1,831.9 1,948.3 2,017.1 2,156.5 2,117.0 2,137.3 2,156.5 2,170.2 2,191.5 2,225.1 2,261.7 44 Money market fund shares 227.3 265.6 292.8 315.6 306.1 303.6 315.6 340.3 359.9 389.2 400.8 45 Large time deposits 339.9 328.5 355.2 395.9 349.0 384.7 395.9 412.1 415.4 421.0 398.2 46 Security RPs 108.3 128.5 145.7 166.9 156.2 158.6 166.9 174.1 178.4 182.0 182.5 47 Deposits in foreign countries 18.5 24.5 23.7 11.6 19.9 16.8 11.6 14.4 22.5 12.8 20.5 48 Total of credit market instruments, deposits, and currency 4,619.9 5,010.0 5,367.8 5,842.6 5,543.2 5,676.7 5,842.6 5,943.9 6,060.9 6,183.8 6,323.2 49 Public holdings as percent of total 20.8 22.8 23.8 23.5 23.4 23.4 23.5 23.8 23.4 23.6 23.8 50 Private financial intermediation (in percent) 85.2 87.1 87.4 87.1 87.9 87.2 87.1 87.2 87.0 86.4 86.3 51 Total foreign funds 373.5 484.7 590.2 701.8 652.4 653.8 701.8 719.4 706.8 745.9 784.3 MEMO: Corporate equities not included above 52 Total market value 2,823.9 3,360.6 3,325.0 3,620.3 3,622.7 3,577.6 3,620.3 3,731.5 4,072.2 4,398.7 4,311.7 53 Mutual fund shares 240.2 413.5 460.1 478.3 486.8 478.1 478.3 486.3 514.8 539.6 548.0 54 Other equities 2,583.7 2,947.1 2,864.9 3,142.0 3,136.0 3,099.5 3,142.0 3,245.2 3,557.4 3,859.1 3,763.7 55 Holdings by financial institutions 800.0 972.1 1,013.8 1,186.1 1,167.4 1,160.0 1,186.1 1,253.4 1,377.4 1,509.4 1,496.7 56 Other holdings 2,023.9 2,388.4 2,311.2 2,434.2 2,455.4 2,417.6 2,434.2 2,478.1 2,694.8 2,889.3 2,815.0 NOTES BY LINE NUMBER. 32. Excludes net investment of these reserves in corporate equities. 1. Line 1 of table 1.59. 33. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 34. Line 14 less line 21 plus line 28. 6. Includes farm and commercial mortgages. 35-39. Lines 15-19 less amounts acquired by private finance plus amounts 12. Credit market debt of federally sponsored agencies, and net issues of borrowed by private finance. Line 39 includes mortgages. federally related mortgage pool securities. 41. Mainly an offset to line 10. 14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34. 48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47. Also sum of lines 29 and 48 less lines 41 and 47. 49. Line 2/line 1 and 13. 19. Includes farm and commercial mortgages. 50. Line 21/line 14. 27. Line 40 less lines 41 and 47. 51. Sum of lines 11 and 30. 28. Excludes equity issues and investment company shares. Includes line 20. 52-54. Includes issues by financial institutions. 30. Foreign deposits at commercial banks plus bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts affiliates, less claims on foreign affiliates and deposits by banking in foreign banks. outstanding may be obtained from Flow of Funds Section, Stop 95, Division of 31. Demand deposits and note balances at commercial banks. Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • June 1990 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures1 1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1989 1990 MMeeaassuurree 11998877 11998888 11998899 July Aug. Sept. Oct. Nov. Dec. Jan.' Feb. Mar. 1 Industrial production 129.8 137.2 n.a. 107.8R 108.2' 108.2' 107.7' 108.1' 108.6' 107.2 108.1' 108.8 Market groupings 2 Products, total 138.3 145.9 n.a. 108.2' 108.5' 108.8' 108.1' 108.9' 109.7' 108.1 109.3' 110.0 3 Final, total 136.8 144.3 n.a. 108.7' 109.1' 109.6' 108.5' 109.4' 110.3' 108.2 109.6' 110.4 4 Consumer goods 127.7 133.9 n.a. 105.2' 105.6' 106.3' 107.3' 107.4' 108.3' 105.5 107.0' 107.8 5 Equipment 148.8 158.2 n.a. 113.2' 113.6' 113.8' 110.1' 112.0' 112.9' 111.6 112.9' 113.7 6 Intermediate 143.3 151.5 n.a. 106.7' 106.4' 106.3' 106.9' 107.3' 107.9' 107.9 108.5' 109.0 7 Materials 118.3 125.3 n.a. 107.3' 107.8' 107.4' 107.1' 107.0' 106.9' 105.8 106.2' 107.0 Industry groupings 8 Manufacturing 134.6 142.8 n.a. 108.6' 109.1' 109.1' 108.4' 108.9' 108.8' 108.0 109.2' 109.5 Capacity utilization (percent)2 9 Manufacturing 81.4' 83 .Y 83.9 83.6' 83.8' 83.6' 82^ 83.0' 82.8 82.0 82.6' 82.7 10 Industrial materials industries 80.5 83.7 83.7 83.7 83.9 83.6 83.5 83.3 82.3 81.7 81.6 n.a. 11 Construction contracts (1982 = 100)3 164.8 166.1 167.0 168.0 168.0 181.0 173.0 158.0 160.0 154.0 147.0 156.0 12 Nonagricultural employment, total4 123.9 128.0 131.6 131.9 132.0 132.3 132.4 132.7 132.9 133.3 133.7 133.8 13 Goods-producing, total 101.5 103.7 105.3 105.4 105.5 105.2 105.2 105.2 104.9 104.8 105.5' 105.1 14 Manufacturing, total 96.7 98.6 99.6 99.8 99.8 99.4 99.2 99.1 99.0 98.3 98.8 98.6 15 Manufacturing, production- worker ... 91.9 93.9 94.8 94.8 94.8 94.2 94.1 93.9 93.8 92.8 93.5 93.3 16 Service-producing 133.3 138.2 142.7 143.0 143.1 143.6 143.8 144.2 144.6 145.2 145.6 145.8 17 Personal income, total 235.0 252.8 275.4' 276.4 277.3 277.9 280.0' 282.5' 283.9' 285.9 288.4 n.a. 18 Wages and salary disbursements 226.3 244.4 264.7 266.1 266.7 268.5 271.0 271.1 272.9" 274.2 276.6 n.a. 19 Manufacturing 183.8 196.5 207.3 207.5 208.8 208.8 211.1 209.1 209.2 208.3 210.7 n.a. 20 Disposable personal income 232.4 252.1 274.0 275.4 276.1 276.5 278.4' 281.2 282.4 285.0 287.1 289.4 21 Retail sales® 213.6 228.0 240.6 242.2 244.2 245.2 241.9 243.7 242.8 249.6 248^ 247.4 Prices7 22 Consumer (1982-84 = 100) 113.6 118.3 124.0 124.4 124.6 125.0 125.6 125.9 126.1 127.4 128.0 128.7 23 Producer finished goods (1982 = 100) ... 105.4 108.0 113.6' 114.1 113.4 113.6 114.9 114.9' 115.3 117.5 117.4 117.0 1. A major revision of the industrial production index and the capacity 5. Based on data in Survey of Current Business (U.S. Department of Comutilization rates was released in July 1985. See "A Revision of the Index of merce). Industrial Production" and accompanying tables that contain revised indexes 6. Based on Bureau of Census data published in Survey of Current Business. (1977=100) through December 1984 in the Federal Reserve Bulletin, vol. 71 (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 1990 CCaatteeggoorryy 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Dec. Jan/ Feb/ Mar. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 185,010 186,837 188,601 188,808 188,948 189,096 189,238 189,381 189,506 189,607 189,717 2 Labor force (including Armed Forces)1 122,122 123,893 126,077 126,280 126,245 126,373 126,709 126,762 126,610 126,825 127,017 3 Civilian labor force 119,865 121,669 123,869 124,070 124,023 124,148 124,488 124,546 124,397 124,630 124,829 Employment 4 Nonagricultural industries2 109,232 111,800 114,142 114,275 114,200 114,388 114,676 114,691 114,728 114,957 115,133 5 Agriculture 3,208 3,169 3,199 3,275 3,219 3,197 3,160 3,197 3,134 3,079 3,200 Unemployment 6 Number 7,425 6,701 6,528 6,520 6,604 6,563 6,652 6,658 6,535 6,594 6,495 7 Rate (percent of civilian labor force) 6.2 5.5 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.2 8 Not in labor force 62,888 62,944 62,524 62,528 62,703 62,723 62,529 62,619 62,896 62,782 62,700 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 102,200 105,584 108,573 108,887 109,096 109,171 109,452 109,570 109,931 110,287 110,313 10 Manufacturing 19,024 19,403 19,611 19,644 19,559 19,537 19,517 19,489 19,355 19,451 19,420 11 Mining 717 721 722 729 730 731 737 739 745 749 748 12 Contract construction 4,967 5,125 5,302 5,321 5,325 5,335 5,355 5,304 5,418 5,482 5,418 13 Transportation and public utilities 5,372 5,548 5,703 5,618 5,709 5,729 5,753 5,834 5,850 5,863 5,866 14 Trade 24,327 25,139 25,807 25,877 25,896 25,957 26,044 26,029 26,154 26,124 26,109 15 Finance 6,547 6,676 6,814 6,836 6,852 6,851 6,871 6,885 6,896 6,914 6,922 16 Service 24,236 25,600 26,889 27,058 27,159 27,188 27,345 27,419 27,557 27,706 27,757 17 Government 17,010 17,372 17,726 17,804 17,866 17,843 17,830 17,871 17,956 17,998 18,073 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 • June 1990 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1989 1990 1989 1990 1989 1990 SSeerriieess Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Output (1987 = 100) Capacity (percent of 1987 output) Utilization rate (percent) 1 Total industry 108.4 108.1 108.1 108.0 128.0 128.8 129.5 130.3 84.7 84.0 83.5 82.9 2 Mining 101.1 100.8 100.6 101.6 117.2 116.7 116.1 115.7 86.2 86.4 86.8 87.8 3 Utilities 106.3 106.2 110.6 105.2 125.3 125.5 125.7 126.0 84.9 84.6 87.8 83.5 4 Manufacturing 109.3 108.9 108.7 108.9 129.2 130.2 131.1 132.1 84.5 83.7 82.9 82.4 5 Primary processing 106.4 106.4 106.1 106.0 122.0 122.7 123.4 124.2 87.3 86.7 85.9 85.4 6 Advanced processing . 110.6 110.1 109.9 110.3 132.6 133.7 134.7 135.8 83.4 82.4 81.7 81.2 Previous cycle2 Latest cycle3 1989 1990 High Low High Low Mar. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Capacity utilization rate (percent) 7 Total industry 89.2 72.6 87.3 71.8 84.5 83.9 84.0 83.9 83.4 83.5 83.7 82.4 82.9 83.3 8 Mining 94.4 88.4 96.6 80.6 83.6 85.6 86.4 87.2 87.3 86.8 86.3 88.5 87.2 87.8 9 Utilities 95.6 82.5 88.3 76.2 85.6 85.0 84.7 84.3 85.5 85.6 92.3 82.5 81.5 86.4 10 Manufacturing 88.9 70.8 87.3 70.0 84.5 83.6 83.8 83.6 82.9 83.0 82.8 82.0 82.6 82.7 11 Primary processing.... 92.2 68.9 89.7 66.8 87.3 87.2 86.9 86.1 86.6 86.0 85.2 85.6 85.4 85.1 12 Advanced processing.. 87.5 72.0 86.3 71.4 83.4 82.2 82.4 82.5 81.4 81.8 81.8 80.4 81.5 81.7 1. These data also appear in the Board's G.3 (402) release. For address, see 2. Monthly high 1973; monthly low 1975. inside front cover. 3. Monthly highs 1978 through 1980; monthly lows 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted 1987 1989 1990 GGrroouuppss p p r o o r - - a 1 v 98 g 9 . tion Mar/ Apr/ May' June' July' Aug/ Sept/ Oct/ Nov/ Dec/ Jan/ Feb/ Mar/ Index (1977 = 100) MAJOR MARKET 1 Total index 100.00 107.7 108.6 108.3 108.4 107.8 108.2 108.2 107.7 108.1 108.6 107.2 108.1 108.8 2 Products 60.79 108.3 108.9 108.9 109.1 108.2 108.5 108.8 108.1 108.9 109.7 108.1 109.3 110.0 3 Final products 46.05 108.7 109.5 109.6 109.8 108.7 109.1 109.6 108.5 109.4 110.3 108.2 109.6 110.4 4 Consumer goods 26.02 106.9 107.0 106.8 106.3 105.2 105.6 106.3 107.3 107.4 108.3 105.5 107.0 107.8 5 Equipment 20.03 110.9 112.6 113.1 114.3 113.2 113.6 113.8 110.1 112.0 112.9 111.6 112.9 113.7 6 Intermediate products 14.74 107.2 107.2 106.6 106.7 106.7 106.4 106.3 106.9 107.3 107.9 107.9 108.5 109.0 7 Materials 39.21 106.9 108.0 107.3 107.6 107.3 107.8 107.4 107.1 107.0 106.9 105.8 106.2 107.0 Consumer goods 8 Durable consumer goods 5.58 109.0 110.0 109.2 108.4 105.6 105.8 107.6 106.8 105.7 106.8 99.1 107.1 111.0 9 Automotive products 2.47 110.4 110.2 109.2 106.7 101.1 103.2 104.9 102.9 102.4 104.5 85.2 101.2 109.5 10 Autos and trucks 1.48 110.3 109.8 109.6 106.2 97.1 101.1 103.1 99.7 98.4 100.1 66.3 92.1 106.6 11 Autos, consumer .93 105.5 106.2 105.7 100.5 89.3 95.1 102.0 100.7 92.8 92.6 62.1 86.9 100.5 12 Trucks, consumer .55 118.3 115.8 116.2 115.7 110.1 111.3 105.0 98.2 108.0 112.6 73.3 100.8 117.0 13 Auto parts and allied goods .99 110.4 110.7 108.5 107.4 107.0 106.3 107.4 107.6 108.2 111.2 113.6 114.9 113.7 14 Home goods 3.11 108.0 110.0 109.3 109.8 109.2 107.9 109.8 109.8 108.4 108.6 110.1 111.7 112.1 15 Appliances, AIC and TV .79 107.4 108.6 105.9 110.5 107.5 106.5 109.3 107.6 102.0 101.0 108.2 108.4 113.3 16 Carpeting and furniture .91 102.3 103.2 104.1 102.1 101.0 98.1 100.9 101.1 100.4 102.0 103.8 104.2 102.6 17 Miscellaneous home goods 1.42 112.0 115.1 114.6 114.3 115.4 114.8 115.8 116.6 117.1 117.1 115.2 118.3 117.6 18 Nondurable consumer goods 20.44 106.3 106.2 106.2 105.8 105.1 105.6 106.0 107.4 107.8 108.7 107.3 106.9 107.0 19 Consumer staples 17.87 106.8 106.8 106.8 106.2 105.6 106.3 106.6 108.2 109.0 110.0 108.2 107.9 108.2 20 Nonfood staples 8.77 109.7 108.8 109.6 109.5 109.2 109.6 109.6 111.0 112.2 113.7 111.0 110.1 111.5 21 Consumer chemical products 3.54 108.5 107.8 110.1 109.8 109.6 110.1 107.8 110.3 111.3 110.3 112.7 111.7 111.9 22 Consumer paper products 2.55 114.0 112.8 112.7 112.9 113.1 114.1 116.2 117.2 118.1 116.9 116.2 115.6 116.8 23 Consumer energy 2.68 107.4 106.5 106.1 106.1 105.2 104.7 106.0 106.0 108.0 115.2 103.9 102.6 106.0 24 Consumer fuel .73 103.6 101.8 100.6 103.0 104.5 102.3 103.4 103.1 103.0 100.5 105.1 107.0 102.5 25 Residential utilities 1.96 108.8 108.2 108.1 107.2 105.5 105.6 106.9 107.0 109.8 120.7 103.5 101.0 107.3 Equipment 26 Business and defense equipment 19.28 111.8 113.4 114.0 115.0 114.0 114.5 114.7 110.6 112.6 113.4 112.2 113.5 114.1 27 Business equipment 13.93 117.9 119.6 120.2 121.4 119.9 120.4 120.7 116.0 118.7 119.9 117.9 119.6 120.8 28 Transit 2.46 121.2 127.9 127.6 128.3 123.8 128.4 127.0 112.9 117.0 123.4 111.4 123.7 131.5 29 Defense and space equipment 5.35 96.1 97.1 97.6 98.3 98.7 98.9 98.9 96.6 96.7 96.6 97.5 97.6 96.6 Intermediate products 30 Construction supplies 6.05 105.5 106.3 105.9 106.2 106.5 105.5 105.2 106.3 107.0 107.4 108.0 108.1 108.3 31 Business supplies 8.69 108.3 107.8 107.1 107.0 106.8 106.9 107.0 107.3 107.5 108.2 107.9 108.7 109.5 32 General business supplies 7.07 108.4 108.0 107.1 107.1 106.6 107.1 107.0 107.2 107.3 106.6 107.9 109.5 33 Commercial energy products 1.63 108.0 106.8 106.5 106.4 107.6 106.0 106.9 107.6 108.1 115.4 107.7 105.4 Materials 34 Durable goods materials 19.35 111.1 112.3 111.5 112.1 111.5 112.0 112.0 110.8 110.8 110.4 109.5 110.9 111.2 35 Durable consumer parts 4.16 110.2 110.8 110.6 110.3 107.7 109.2 108.8 106.9 105.7 102.5 96.5 102.9 104.6 36 Equipment parts 7.25 113.5 114.9 114.2 115.0 115.0 115.6 115.5 114.4 115.3 115.8 116.5 117.4 117.3 37 Durable materials n.e.c 7.94 109.5 110.7 109.7 110.4 110.4 110.4 110.6 109.5 109.4 109.5 110.1 109.2 109.2 38 Basic metal materials 2.78 111.4 114.9 109.9 111.9 113.1 113.0 112.9 111.0 108.6 109.3 109.4 111.0 109.5 39 Nondurable goods materials 9.01 104.9 106.0 105.4 105.5 106.7 105.7 104.2 106.1 104.9 104.3 104.4 103.7 103.4 40 Textile, paper, and chemical materials 6.86 104.5 105.7 104.3 104.8 106.8 105.5 103.6 105.7 103.8 102.4 102.4 102.2 101.7 41 Textile materials 1.18 99.6 101.9 101.5 103.2 104.9 102.1 99.6 98.6 96.1 95.8 93.5 93.6 92.4 42 Pulp and paper materials 1.87 102.5 103.1 102.1 102.4 104.8 103.6 104.1 107.7 104.6 103.7 105.0 103.8 104.4 43 Chemical materials 3.81 107.0 108.1 106.1 106.5 108.2 107.3 104.5 106.8 105.8 103.8 103.8 104.0 103.3 44 Miscellaneous nondurable materials ... 2.14 106.4 107.0 109.1 107.9 106.8 107.0 106.5 107.5 108.4 110.4 110.8 108.7 108.7 45 Energy materials 10.85 100.8 101.9 101.2 101.0 100.1 101.7 101.6 101.3 101.9 102.7 100.3 99.7 102.3 46 Primary energy 7.18 97.4 99.8 100.6 100.8 100.0 102.5 100.7 99.8 100.5 99.0 101.5 99.9 101.0 47 Converted fuel materials 3.68 107.5 106.0 102.5 101.7 100.4 100.4 103.6 104.2 104.5 110.0 97.8 99.5 104.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • June 1990 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1987 Groups SIC propor- 1989 code tion avg. Mar/ Apr/ May' June' July' Aug.' Sept.' Oct.' Nov.' Dec.' Jan.' Feb.p Mar Index (1977 = 100) MAJOR INDUSTRY 1 Mining and utilities . 15.56 102.7 104.0 103.6 103.3 103.3 103.4 103.7 104.0 104.7 108.0 103.1 101.7 105.1 2 Mining 7.93 98.3 101.7 101.1 100.4 100.0 100.7 101.6 100.7 101.2 100.1 102.4 100.8 101.4 3 Utilities 7.63 107.2 106.4 106.3 106.3 106.6 106.2 105.9 107.4 108.3 116.1 103.9 102.6 109.0 4 Manufacturing 84.44 108.7 109.4 109.2 109.3 108.6 109.1 109.1 108.4 108.9 108.8 108.0 109.2 109.5 5 Nondurable 37.17 105.9 106.5 106.4 106.2 106.1 106.2 106.0 107.2 107.3 106.7 107.3 107.5 107.0 6 Durable 47.27 110.9 111.6 111.4 111.8 110.6 111.3 111.5 109.4 110.1 110.4 108.6 110.5 111.5 Mining 7 Metal 10 .32 133.3 135.7 136.1 143.3 151.7 144.3 145.4 143.2 145.9 155.5 154.5 152.0 151.0 8 Coal 11.12 1.22 105.1 111.1 104.7 100.3 101.1 103.1 109.6 109.9 108.1 103.5 114.1 111.9 111.9 9 Oil and gas extraction.... 13 5.73 93.9 96.7 97.0 96.3 94.9 96.3 95.9 94.3 95.5 94.0 94.9 93.7 94.7 10 Stone and earth minerals. 14 .67 106.7 111.2 113.0 115.0 116.8 113.3 114.1 118.0 115.8 119.7 121.5 117.4 116.7 Nondurable manufactures 11 Foods 8.76 104.5 106.2 105.5 104.2 104.0 104.8 105.4 106.8 107.4 108.0 107.0 107.6 106.8 12 Tobacco products 1.02 102.8 104.0 101.7 100.4 94.2 95.0 93.3 99.7 98.8 98.5 101.3 102.3 100.0 13 Textile mill products 1.84 101.7 104.1 103.2 102.4 104.2 101.5 101.5 101.9 99.3 99.8 100.0 101.1 99.6 14 Apparel products 2.36 104.4 105.1 104.9 105.2 104.4 104.7 104.5 103.9 103.7 102.6 102.4 102.6 101.3 15 Paper and products 3.58 102.5 103.0 102.1 101.8 104.1 103.0 102.2 105.3 104.1 103.4 103.8 103.7 104.2 16 Printing and publishing 6.37 108.9 108.6 108.4 108.6 106.6 107.8 109.4 109.3 109.6 109.6 110.5 111.0 110.9 17 Chemicals and products 8.60 107.5 107.5 108.4 109.1 109.7 109.6 107.5 109.4 109.8 107.6 108.9 109.0 108.4 18 Petroleum products 1.32 104.1 104.5 104.6 106.6 108.2 107.0 108.7 106.9 109.3 104.3 108.7 109.9 108.0 19 Rubber and plastic products . 3.02 108.5 108.5 109.8 109.0 109.0 109.0 108.5 108.8 109.1 110.1 110.7 108.7 110.4 20 Leather and products .30 104.6 105.1 102.8 102.2 103.7 103.2 103.5 102.2 99.4 103.0 104.3 102.9 103.0 Durable manufactures 21 Lumber and products 24 2.00 100.8 102.7 102.3 103.5 102.8 102.4 102.6 103.2 104.8 106.4 105.7 103.6 105.1 22 Furniture and fixtures 25 1.45 105.5 105.8 107.9 107.0 104.9 104.5 105.7 105.6 104.4 105.1 105.2 104.6 103.9 23 Clay, glass, and stone products 32 2.46 108.4 107.7 108.2 108.0 106.2 107.8 106.5 107.7 108.2 108.6 110.1 109.1 108.9 24 Primary metals 33 3.32 108.8 112.7 107.0 108.7 108.8 111.7 109.9 108.6 104.8 102.6 106.7 108.2 104.9 25 Iron and steel 331.2 1.95 109.3 115.4 104.8 107.1 107.5 109.8 109.7 109.2 104.1 100.3 107.5 110.4 104.4 26 Fabricated metal products. 34 5.38 107.4 106.9 107.9 108.3 107.6 106.5 106.0 105.9 106.9 106.3 105.3 105.6 106.2 27 Nonelectrical machinery .. 35 8.55 121.9 121.6 121.8 123.4 121.6 121.8 123.4 119.0 122.9 123.8 123.3 122.8 123.0 28 Electrical machinery 36 8.62 109.2 110.1 108.8 109.1 108.6 110.6 110.8 110.2 110.1 110.1 110.0 111.2 111.9 29 Transportation equipment 37 9.80 108.7 109.4 109.6 109.0 106.6 107.8 108.0 102.1 102.8 104.4 94.7 103.1 107.9 30 Motor vehicles and parts .... 371 4.65 108.9 108.6 107.8 105.0 99.6 102.7 103.2 99.7 99.0 98.7 76.8 94.3 103.8 31 Aerospace and miscellaneous transportation equipment.. 1372-6.9 5.15 108.5 110.1 111.2 112.6 113.0 112.4 112.3 104.3 106.3 109.6 111.0 111.0 111.6 32 Instruments 38 3.26 115.2 117.5 118.0 118.3 118.5 116.4 116.2 116.1 115.6 114.8 116.0 116.8 116.6 33 Miscellaneous manufactures .. 39 1.24 114 108.6 112.5 111.0 108.4 114.7 111.0 112.7 115.2 116.9 116.3 114.5 115.8 Utilities 34 Electric . 6.01 108.0 107.1 107.4 107.6 108.5 108.1 107.1 109.7 109.5 116.3 104.9 103.7 110.5 Gross value (billions of 1982 dollars, annual rates) MAJOR MARKET 35 Products, total 1734.82 1,890.3 1,894.0 1,894.8 1,894.4 1,869.0 1,883.7 1,894.3 1,878.3 1,896.9 1,905.5 1,860.7 36 Final 1350.87 1,479.3 1,485.5 1,485.3 1,485.6 1,459.6 1,475.3 1,486.2 1,465.6 1,482.8 1,492.5 1,444.9 37 Consumer goods , 833.36 890.2 888.4 885.7 878.5 868.9 870.1 878.8 883.2 889.0 898.6 862.9 38 Equipment 517.51 589.1 597.1 599.6 607.1 590.8 605.3 607.5 582.4 593.8 594.0 582.0 39 Intermediate 383.95 411.0 408.5 409.5 408.8 409.3 408.4 408.1 412.7 414.1 413.0 415.8 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. 1989 1990 IItteemm 11998877 11998888 11998899 May June July Aug. Sept. Oct. Nov. Dec." Jan." Feb. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,535 1,456 1,332 1,347 1,308 1,281 1,328 1,319 1,356 1,342 1,376 1,745 1,305 2 1-family 1,024 994 934 905 874 906 927 946 961 979 970 1,004 983 3 2-or-more-family 511 462 398 442 434 375 401 373 395 363 406 741 322 4 Started 1,621 1,488 1,376 1,308 1,414 1,424 1,325 1,263 1,423 1,347 1,273 1,568 1,457 5 1-family 1,146 1,081 1,003 977 971 1,029 987 969 1,023 1,010 931 1,099 1,154 6 2-or-more-family 474 407 373 331 443 395 338 294 400 337 342 469 303 7 Under construction, end of period1 . 987 919 850" 912 915 918 901 892 894 881 886 891 900 8 1-family 591 570 535r 573 572 576 565 565 565 558 567 571 579 9 2-or-more-family 397 350 315" 339 343 342 336 327 329 323 319 320 321 10 Completed 1,669 1,530 1,423 1,444 1,355 1,375 1,437 1,366 1,317 1,486 1,302 1,433 1,355 11 1-family 1,123 1,085 1,026 1,038 964 967 1,037 959 987 1,078 933 1,021 1,037 12 2-or-more-family 546 445 396' 406 391 408 400 407 330 408 369 412 318 13 Mobile homes shipped 233 218 198 205 200 179 194 186 190 189 189 195 200 Merchant builder activity in 1-family units 14 Number sold 672 675 650 651 646 741 719 638 636 687 632 589 607 15 Number for sale, end of period .... 366 367 361 379 376 369 364 364 363 363 361 364 365 Price (thousands of dollars)1 Median 16 Units sold 104.7 113.3 120.4 119.0 122.8 116.0 122.9 120.0 123.0 125.0 125.0 125.0 130.0 17 Units sold 127.9 139.0 148.5 145.1 153.6 140.3 158.6 151.1 147.8 151.4 156.6 154.2 155.2 EXISTING UNITS (1-family) 18 Number sold 3,530 3,594 3,439 3,250 3,330 3,380 3,440 3,510 3,490 3,560 3,560 3,520 3,400 Price of units sold (thousands of dollars)2 19 Median 85.6 89.2 93.0" 92.6 93.5 95.2 95.8 93.8 92.4 93.1 92.5 96.3 95.2 20 Average 106.2 112.5 118.0 118.0 119.0 121.0 121.6 118.3 116.7 117.9 118.1 120.0 118.3 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 397,721 409,663 414,273" 416,540 412,523 410,269 416,279 416,176 411,544" 416,509" 415,135 425,257 436,498 7,7. Private 320,108 328,738 330,250" 330,591 329,035 328,785 331,884 329,564 328,687" 327,761' 321,380 333,365 342,689 73 Residential 194,656 198,101 195,385' 196,984 194,229 195,165 194,393 192,765 191,428" 190,313' 189,452 195,083 198,542 74 Nonresidential, total 112255,,445522 130,637 134,865' 133,607 134,806 133,620 137,491 136,799 137,259" 137,448' 131,928 138,282 144,147 Buildings 75 Industrial 13,707 14,931 16,756 15,945 16,302 16,424 17,526 17,927 17,856" 17,997' 17,296 19,476 21,334 76 Commercial 55,448 58,104 57,485 56,796 57,434 56,640 57,680 57,132 58,213" 57,845' 54,368 55,818 59,402 77 Other 15,464 17,278 17,366 17,343 17,179 16,768 18,455 17,962 17,332" 17,813" 16,248 17,497 16,968 28 Public utilities and other 40,833 40,324 43,258' 43,523 43,891 43,788 43,830 43,778 43,858' 43,793' 44,016 45,491 46,443 7.9 Public 77,612 80,922 84,019" 85,130 81,914 81,484 84,395 86,612 82,857' 88,748" 93,755 91,891 93,809 30 Military 4,327 3,579 3,504' 3,870 4,324 3,194 3,779 4,916 2,076' 3,664' 3,552 3,325 3,206 31 Highway 25,343 28,524 27,663 27,432 27,321 26,128 27,367 27,581 26,214' 28,670" 32,502 30,298 32,698 37 Conservation and development... 5,162 4,474 4,772" 6,053 4,699 4,567 4,708 4,906 5,145" 5,075' 5,664 5,080 5,323 33 Other 42,780 44,345 48,080' 47,775 45,570 47,595 48,541 49,209 49,422' 51,339" 52,037 53,188 52,582 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 • June 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 1989 1990 1989 1990 MMMaaarrr... 11998899 11999900 111999999000 MMaarr.. MMaarr.. June Sept. Dec. Mar. Nov/ Dec. Jan. Feb. Mar. CONSUMER PRICES2 (1982-84=100) 1 AU items 5.0 5.2 5.3 2.3 4.9 8.5 .3 .4 1.1 .5 .5 128.7 2 Food 6.6 6.5 5.6 3.6 5.5 11.4 .5 .5 2.0 .5 .3 131.5 3 Energy items 3.8 6.3 22.7 -12.6 3.9 14.8 -.3 .3 5.1 -.7 -.8 95.5 4 All items less food and energy 4.7 4.9 3.8 3.5 4.7 7.5 .4 .3 .6 .5 .7 133.9 5 Commodities 3.8 3.7 2.4 1.3 3.4 7.8 .2 .2 .4 1.0 .5 123.4 6 Services 5.2 5.5 4.6 4.5 5.7 7.2 .4 .4 .7 .4 .7 140.0 PRODUCER PRICES (1982=100) 7 Finished goods 5.5 4.4 5.8 .4 5.0 6.7 .1 .6 1.8 .0 -.2 117.0 8 Consumer foods 7.4 4.9 -2.3 .7 12.0 9.9 .8 .7 2.1 .9 -.6 124.1 9 Consumer energy 7.0 7.4 34.3 -15.3 -4.8 23.2 -2.9 1.6r 13.6 -5.0 -2.4 66.9 10 Other consumer goods 4.7 4.0 6.0 2.3 4.6 3.2 .2 .6 .0 .6 .2 127.5 11 Capital equipment 3.8 3.7 4.5 4.4 1.7 3.7 .3 .2 .2 .2 .4 121.8 12 Intermediate materials3 6.3 1.0 2.9 -.7 .4 1.8 -.3 .2' 1.2 -.7 .0 112.5 13 Excluding energy 6.6 .0 .3 -.7 -1.3 1.7 -.1 .1 .1 .2 120.3 Crude materials 14 Foods 13.9 1.3 -16.9 -2.2 18.4 9.5 2.2 2.R 1.0 1.0 .3 115.2 15 Energy 7.0 7.1 23.6 -7.0 13.2 1.0 .4 2 .V 5.0 .1 -4.6 78.7 16 Other 5.9 -5.0 -7.7 .6 -16.3 5.6 -2.5 -2.<Y .2 -.8 2.0 134.3 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A53 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1989 1990 AAccccoouunntt 11998877 11998888 11998899'' Ql Q2 Q3 Q4 Ql GROSS NATIONAL PRODUCT 1 4,524.3 4,880.6 5,234.0 5,113.1 5,201.7 5,281.0 5,340.2 5,441.2 By source 2 Personal consumption expenditures 3,010.8 3,235.1 3,471.1 3,381.4 3,444.1 3,508.1 3,550.6 33,,663399..22 3 Durable goods 421.0 455.2 473.2 466.4 471.0 486.1 469.5 492.9 4 Nondurable goods 998.1 1,052.3 1,123.4 1,098.3 1,121.5 1,131.4 1,142.4 1,166.9 5 Services 1,591.7 1,727.6 1,874.4 1,816.7 1,851.7 1,890.6 1,938.7 1,979.5 6 Gross private domestic investment 699.9 750.3 773.4 769.6 775.0 779.1 770.1 761.4 7 Fixed investment 670.6 719.6 746.3 742.0 747.6 751.7 744.0 764.9 8 Nonresidential 444.3 487.2 511.7 503.1 512.5 519.6 511.4 526.3 9 Structures 133.8 140.3 144.9 144.7 142.4 146.2 146.4 150.1 10 Producers' durable equipment 310.5 346.8 366.7 358.5 370.1 373.4 365.0 376.1 11 Residential structures 226.4 232.4 234.6 238.8 235.1 232.1 232.6 238.6 12 Change in business inventories 29.3 30.6 27.1 27.7 27.4 27.4 26.1 -3.5 13 Nonfarm 30.5 34.2 22.2 19.1 23.6 19.8 26.4 -8.9 14 Net exports of goods and services -112.6 -73.7 -47.1 -54.0 -50.6 -45.1 -38.8 -40.1 15 Exports 448.6 547.7 625.9 605.6 626.1 628.5 643.5 646.7 16 Imports 561.2 621.3 673.0 659.6 676.6 673.6 682.3 686.7 17 Government purchases of goods and services 926.1 968.9 1,036.6 1,016.0 1,033.2 1,038.9 1,058.3 1,080.6 18 Federal 381.6 381.3 403.2 399.0 406.0 402.7 405.1 412.8 19 State and local 544.5 587.6 633.4 617.0 627.2 636.2 653.2 667.9 By major type of product 20 Final sales, total 4,495.0 4,850.0 5,206.9 5,085.4 5,174.3 55,,225533..66 55,,331144..22 55,,444444..77 71 Goods 1,785.2 1,931.9 2,072.3 2,030.9 2,079.1 2,096.3 2,082.8 2,120.1 27 Durable 777.6 863.6 909.1 894.7 905.2 930.1 906.5 941.7 73 Nondurable 1,007.6 1,068.3 1,163.2 1,136.2 1,173.9 1,166.2 1,176.3 1,178.4 74 Services 2,304.5 2,499.2 2,702.7 2,620.8 2,667.5 2,728.1 2,794.2 2,845.2 25 Structures 434.6 449.5 459.1 461.3 455.1 456.6 463.2 475.9 2.6 Change in business inventories 29.3 30.6 27.1 27.7 27.4 27.4 26.1 -3.5 27 Durable goods 22.0 25.0 11.9 22.0 6.0 5.2 14.2 -6.0 28 Nondurable goods 7.2 5.6 15.3 5.7 21.4 22.2 11.8 2.6 MEMO 29 Total GNP in 1982 dollars 3,853.7 4,024.4 4,144.1 4,106.8 4,132.5 4,162.9 4,174.1 4,195.8 NATIONAL INCOME 30 3,665.4 3,972.6 4,266.5 4,185.2 4,249.6 4,287.3 4,344.0' n.a. 31 Compensation of employees 2,690.0 2,907.6 3,144.4 3,061.7 3,118.2 3,171.9 3,225.9 3,282.3 37, Wages and salaries 2,249.4 2,429.0 2,631.1 2,560.7 2,608.8 2,654.7 2,700.1 2,744.1 33 Government and government enterprises 419.2 446.5 476.9 466.9 473.5 480.2 487.0 496.9 34 Other 1,830.1 1,982.5 2,154.2 2,093.8 2,135.3 2,174.5 2,213.1 2,247.2 35 Supplement to wages and salaries 440.7 478.6 513.3 501.0 509.4 517.2 525.8 538.2 36 Employer contributions for social insurance 227.8 249.7 265.0 259.7 263.4 266.6 270.4 278.2 37 Other labor income 212.8 228.9 248.3 241.3 246.0 250.7 255.3 260.0 38 Proprietors' income1 311.6 327.8 352.1 359.3 355.5 343.3 350.3 374.6 39 Business and professional 270.0 288.0 305.9 300.3 304.2 307.2 311.8 322.7 40 Farm1 41.6 39.8 46.2 59.0 51.3 36.1 38.5 51.9 41 Rental income of persons2 13.4 15.7 7.9 11.8 9.8 5.4 4.8 8.9 42 Corporate profits' 298.7 328.6 301.3 316.3 307.8 295.2 285.9' n.a. 43 Profits before tax3 266.7 306.8 290.7' 318.0 296.0 275.0 273.7' n.a. 44 Inventory valuation adjustment -18.9 -25.0 -18.7 -38.3 -20.5 -6.3 -9.7 -12.6 45 Capital consumption adjustment 50.9 46.8 29.3 36.6 32.3 26.5 21.9 18.0 46 Net interest 351.7 392.9 460.8 436.1 458.4 471.5 477.2 478.4 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 Domestic Nonfinancial Statistics • June 1990 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1989 1990 AAccccoouunntt 11998877 11998888 1989 Ql Q2 Q3 Q4 Ql PERSONAL INCOME AND SAVING 1 Total personal income 3,777.6 4,064.5 4,427.3 4,317.8 4,400.3 4,455.9 4,535.3 4,634.7 2 Wage and salary disbursements 2,249.4 2,429.0 2,631.1 2,560.7 2,608.8 2,654.7 2,700.1 2,744.1 3 Commodity-producing industries 649.9 696.3 738.2 726.6 733.7 742.6 749.7 753.4 4 Manufacturing 490.3 524.0 552.9 546.3 549.9 555.7 559.6 560.1 5 Distributive industries 531.9 571.9 615.1 598.8 610.8 619.4 631.2 644.1 6 Service industries 648.3 714.4 801.0 768.4 790.8 812.4 832.2 849.8 7 Government and government enterprises 419.2 446.5 476.9 466.9 473.5 480.2 487.0 496.9 8 Other labor income 212.8 228.9 248.3 241.3 246.0 250.7 255.3 260.0 9 Proprietors' income1 311.6 327.8 352.1 359.3 355.5 343.3 350.3 374.6 10 Business and professional 270.0 288.0 305.9 300.3 304.2 307.2 311.8 322.7 11 Farm1 41.6 39.8 46.2 59.0 51.3 36.1 38.5 51.9 12 Rental income of persons 13.4 15.7 7.9 11.8 9.8 5.4 4.8 8.9 13 Dividends 92.0 102.2 112.4 109.4 111.4 113.2 115.7 118.0 14 Personal interest income 523.2 571.1 657.4 629.0 655.1 667.8 677.7 684.4 15 Transfer payments 548.2 584.7 632.3 616.4 626.8 636.4 649.7 671.1 16 Old-age survivors, disability, and health insurance benefits ... 282.9 300.5 325.3 316.9 322.9 327.9 333.4 345.6 17 LESS: Personal contributions for social insurance 172.9 194.9 214.2 210.0 213.0 215.4 218.2 226.5 18 EQUALS: Personal income 3,777.6 4,064.5 4,427.3 4,317.8 4,400.3 4,455.9 4,535.3 4,634.7 19 LESS: Personal tax and nontax payments 571.7 586.6 648.5 628.3 652.6 649.1 664.1 673.5 20 EQUALS: Disposable personal income 3,205.9 3,477.8 3,778.8 3,689.5 3,747.7 3,806.8 3,871.3 3,961.2 21 LESS: Personal outlays 3,104.1 3,333.1 3,574.4 3,483.8 3,547.0 3,611.7 3,655.3 3,745.7 22 EQUALS: Personal saving 101.8 144.7 204.4 205.7 200.7 195.1 216.0 215.5 MEMO Per capita (1982 dollars) 23 Gross national product 15,793.9 16,332.8 16,656.4 16,566.4 1166,,662299..88 16,711.8 1166,,770099..88 1166,,775566..44 24 Personal consumption expenditures 10,302.0 10,545.5 10,729.9 10,653.5 10,678.9 10,799.3 10,783.4 10,823.1 25 Disposable personal income 10,970.0 11,337.0 11,680.0 11,625.0 11,622.0 11,717.0 11,755.0 11,780.0 26 Saving rate (percent) 3.2 4.2 5.4 5.6 5.4 5.1 5.6 5.4 GROSS SAVING 553.8 642.4 701.7 693.5 695.8 709.9 707.7' n.a. 28 Gross private saving 663.8 738.6 806.2 792.1 793.7 809.7 829.4 n.a. 29 Personal saving 101.8 144.7 204.4 205.7 200.7 195.1 216.0 215.5 30 Undistributed corporate profits 75.3 80.3 49.5 53.4 52.0 49.3 43.3 n.a. 31 Corporate inventory valuation adjustment -18.9 -25.0 -18.7 -38.3 -20.5 -6.3 -9.7 -12.6 Capital consumption allowances 303.1 321.7 344.9 333355..22 333399..77 334499..99 335544..99 335533..77 183.6 191.9 207.4 197.8 201.3 215.3 215.2 208.3 34 Government surplus, or deficit (-), national income and product accounts -110.1 -96.1 -104.5' -98.7 -97.9 -99.8 -121.8' n.a. 35 Federal -161.4 -145.8 -148.5 -147.5 -145.4 -144.7 -156.5' n.a. 36 State and local 51.3 49.7 44.0 48.8 47.5 44.9 34.7 n.a. 549.0 632.8 677.3 669.3 677.5 684.3 677.8 671.5 38 Gross private domestic 699.9 750.3 773.4 769.6 775.0 779.1 770.1 761.4 39 Net foreign -150.9 -117.5 -96.2 -100.3 -97.5 -94.8 -92.2 -90.0 -4.7 -9.6 -24.4 -24.1 -18.3 -25.5 -29.8' -29.8 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A55 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1988 1989 Item credits or debits 11998877 11998888 11998899 Q4 QL Q2 Q3 Q4^ 1 Balance on current account. -143,700 --112266,,554488 -105,879 -28,677 -30,391 -31,999 -22,909 -20,571 2 M No e t r c s h e a a n so d n is a e l ly tr a a d d e j u b s a te la d n c J e2' -159,500 -127,215 -113,248 - - 2 3 8 2 , , 1 0 9 1 1 9 - -2 2 8 5 , , 3 9 5 9 5 4 - - 3 2 1 7 , , 8 5 8 2 8 9 - -2 2 8 7 , , 5 8 5 5 8 4 - - 2 2 0 8 , , 1 8 4 0 2 6 Merchandise exports 250,266 319,251 361,872 83,729 87,783 91,284 90,691 92,114 Merchandise imports -409,766 -446,466 -475,120 -115,748 -116,138 -118,813 -119,249 -120,920 Military transactions, net -2,856 -4,606 -5,662 -1,604 -1,498 -1,518 -1,175 -1,471 Investment income, net 71,151 61,974 76,170 21,329 15,459 13,417 21,360 25,934 Other service transactions, net 10,585 17,702 26,279 5,475 5,433 5,981 7,449 7,425 Remittances, pensions, and other transfers .. -4,063 -4,279 -4,028 -1,090 -1,147 -972 -975 -935 U.S. government grants (excluding military). -10,149 -10,377 -10,248 -3,928 -2,340 -1,857 -2,510 -3,541 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) 997 2,999 1,037 3,413 1,049 -309 502 -206 12 Change in U.S. official reserve assets (increase, -). 9,149 -3,566 -25,293 2,271 -4,000 -12,095 -5,996 -3,202 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -509 474 -535 173 -188 68 -211 -204 15 Reserve position in International Monetary Fund. 2,070 1,025 471 307 316 -159 337 -23 16 Foreign currencies 7,588 -5,064 -25,229 1,791 -4,128 -12,004 -6,122 -2,975 17 Change in U.S. private assets abroad (increase, -). -86,363 -81,544 -101,451 -38,332 -27,939 13,210 -39,228 -47,495 18 Bank-reported claims -42,119 -54,481 -47,244 -30,916 -22,132 27,238 -20,700 -31,650 19 Nonbank-reported claims 5,201 -1,684 608 4,569 1,835 -2,954 1,727 20 U.S. purchase of foreign securities, net -5,251 -7,846 -22,551 -3,047 -2,568 -5,737 -10,392 -3,854 21 U.S. direct investments abroad, net -44,194 -17,533 -32,264 -8,938 -5,074 -5,337 -9,863 -11,991 22 Change in foreign official assets in United States (increase, +) 45,193 38,882 7,369 10,589 7,477 -5,201 12,097 -7,005 23 U.S. Treasury securities 43,238 41,683 323 11,897 4,634 -9,738 12,746 -7,319 24 Other U.S. government obligations 1,564 1,309 1,383 697 721 -97 190 569 25 Other U.S. government liabilities4 -2,520 -1,284 55 -232 -304 417 -385 326 26 Other U.S. liabilities reported by U.S. banks3 3,918 -331 3,751 -1,036 1,974 3,620 -1,097 -746 27 Other foreign official assets -1,007 -2,495 1,857 -737 452 597 643 165 28 Change in foreign private assets in United States (increase, +) 172,847 180,417 189,302 70,170 52,529 3,412 58,619 74,742 29 U.S. bank-reported liabilities" 89,026 68,832 57,983 32,223 13,261 -21,422 25,177 40,967 30 U.S. nonbank-reported liabilities 2,450 6,558 313 2,702 2,852 -361 -2,178 31 Foreign private purchases of U.S. Treasury securities, net -7,643 20,144 29,411 5,336 8,590 2,252 12,714 5,855 32 Foreign purchases of other U.S. securities, net 42,120 26,448 40,334 6,871 8,665 9,676 10,470 11,523 33 Foreign direct investments in United States, net 46,894 58,435 61,261 23,038 19,161 13,267 12,436 16,397 34 Allocation of SDRs 0 0 0 0 0 0 0 0 35 Discrepancy 1,878 -10,641 34,914 -19,434 1,275 32,982 -3,085 3,737 36 Owing to seasonal adjustments 4,431 3,700 -2,825 -5,370 4,490 37 Statistical discrepancy in recorded data before seasonal adjustment 1,878 -10,641 34,914 -23,865 -2,425 35,807 2,285 -753 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) 9,149 -3,566 -25,293 2,271 -4,000 -12,095 -5,996 -3,202 39 Foreign official assets in United States (increase, +) excluding line 25 47,713 40,166 7,314 10,821 7,781 -5,618 12,482 -7,331 40 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22 above) -9,956 -3,109 10,680 672 7,143 433 4,515 -1,411 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 53 92 47 40 12 13 8 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 officii agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing. Military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business 3. Reporting banks include all kinds of depository institutions besides commer- (Department of Commerce). cial banks, as well as some brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • June 1990 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data are seasonally adjusted. 1989 1990 IItteemm 11998877 11998888 11998899 Aug. Sept. Oct. Nov. Dec. Jan. Feb." 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments, f.a.s. value 254,073 322,426 363,983 30,249 30,367 31,474 30,627 30,843 31,940 31,630 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 2 Customs value 406,241 440,952 472,977 40,424 38,524 41,915 40,739 38,522 41,261 38,116 Trade balance 3 Customs value -152,169 -118,526 -108,994 -10,176 -8,157 -10,441 -10,112 -7,678 -9,321 -6,486 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 1990 TTyyppee 11998866 11998877 11998888 Sept. Oct. Nov. Dec. Jan. Feb. Mar/ 1 Total 48,511 45,798 47,802 68,418 70,560 70,560 74,609 75,506 74,173 76,303 2 Gold stock, including Exchange Stabilization Fund1 11,064 11,078 11,057 11,065 11,062 11,060 11,059 11,059 11,059 11,060 3 Special drawing rights2'3 8,395 10,283 9,637 9,487 9,473 9,751 9,951 10,041 10,216 10,092 4 Reserve position in International Monetary Fund2 11,730 11,349 9,745 8,786 8,722 9,047 9,048 9,173 8,985 8,727 5 Foreign currencies4 17,322 13,088 17,363 39,080 41,552 42,702 44,551 45,233 43,913 46,424 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 1990 AAsssseettss 11998866 11998877 11998888 p Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Deposits 287 244 347 325 252 307 589 251 309 300 Assets held in custody 2 U.S. Treasury securities 155,835 195,126 232,547 235,597 230,804 231,059 224,911 225,618 221,798 250,447 3 Earmarked gold 14,048 13,919 13,636 13,506 13,460 13,458 13,456 13,458 13,458 13,458 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 1990 AAsssseett aaccccoouunntt 11998866 11998877 11998888 Aug. Sept/ Oct/ Nov. Dec. Jan/ Feb. All foreign countries 1 Total, all currencies 456,628 518,618 505,595 522,489 520,038 532,912 548,074 545,366 549,368 554,072 2 Claims on United States 114,563 138,034 169,111 177,299 182,192 184,327 195,913 198,835 192,688 188,700 Parent bank 83,492 105,845 129,856 134,479 142,475 145,200 154,825 157,092 149,285 145,156 4 Other banks in United States 13,685 16,416 14,918 15,225 14,029 14,084 15,301 17,042 17,840 18,064 5 Nonbanks 17,386 15,773 24,337 27,595 25,688 25,043 25,787 24,701 25,563 25,480 6 Claims on foreigners 312,955 342,520 299,728 299,265 289,754 300,567 302,525 300,575 307,937 314,191 7 Other branches of parent bank 96,281 122,155 107,179 108,893 104,691 110,681 111,053 113,810 120,359 122,525 8 Banks 105,237 108,859 96,932 92,465 90,375 93,190 95,098 90,703 91,712 93,997 9 Public borrowers 23,706 21,832 17,163 16,656 16,222 16,720 16,148 16,456 15,392 15,405 10 Nonbank foreigners 87,731 89,674 78,454 81,251 78,466 79,976 80,226 79,606 80,474 82,264 11 Other assets 29,110 38,064 36,756 45,925 48,092 48,018 49,636 45,956 48,743 51,181 12 Total payable in U.S. dollars 317,487 350,107 357,573 369,287 359,950 369,737 380,282 382,414 374,984 375,210 13 Claims on United States 110,620 132,023 163,456 170,497 174,379 176,047 188,105 191,184 184,782 180,738 14 Parent bank 82,082 103,251 126,929 130,168 137,616 139,390 149,908 152,294 144,055 139,920 15 Other banks in United States 12,830 14,657 14,167 14,688 13,082 13,432 14,543 16,386 17,018 17,187 16 Nonbanks 15,708 14,115 22,360 25,641 23,681 23,225 23,654 22,504 23,709 23,631 17 Claims on foreigners 195,063 202,428 177,685 177,911 164,758 171,854 168,404 169,690 167,722 172,132 18 Other branches of parent bank 72,197 88,284 80,736 83,036 78,298 84,224 79,585 82,949 86,114 87,471 19 Banks 66,421 63,707 54,884 50,885 46,710 47,274 48,966 48,396 45,385 46,514 20 Public borrowers 16,708 14,730 12,131 11,774 11,646 11,579 11,446 10,961 10,332 10,529 21 Nonbank foreigners 39,737 35,707 29,934 32,216 28,104 28,777 28,407 27,384 25,891 27,618 22 Other assets 11,804 15,656 16,432 20,879 20,813 21,836 23,773 21,540 22,480 22,340 United Kingdom 23 Total, all currencies 140,917 158,695 156,835 158,860 156,866 163,426 164,916 161,947 166,915 169,727 24 Claims on United States 24,599 32,518 40,089 41,914 39,837 42,246 44,661 39,212 41,208 40,161 25 Parent bank 19,085 27,350 34,243 38,031 36,182 39,104 40,848 35,847 37,292 36,311 26 Other banks in United States 1,612 1,259 1,123 1,112 1,130 1,036 1,199 1,058 1,441 1,365 27 Nonbanks 3,902 3,909 4,723 2,771 2,525 2,106 2,614 2,307 2,475 2,485 28 Claims on foreigners 109,508 115,700 106,388 102,231 101,855 106,183 105,349 107,657 109,837 110,911 29 Other branches of parent bank 33,422 39,903 35,625 32,392 32,619 35,249 35,064 37,728 37,701 38,410 30 Banks 39,468 36,735 36,765 36,073 37,011 37,881 36,317 36,159 37,668 36,488 31 Public borrowers 4,990 4,752 4,019 3,586 3,272 3,345 3,181 3,293 3,128 3,076 32 Nonbank foreigners 31,628 34,310 29,979 30,180 28,953 29,708 30,787 30,477 31,340 32,937 33 Other assets 6,810 10,477 10,358 14,715 15,174 14,997 14,906 15,078 15,870 18,655 34 Total payable in U.S. dollars 95,028 100,574 103,503 104,036 99,264 106,708 106,086 103,427 103,038 103,752 35 Claims on United States 23,193 30,439 38,012 39,135 36,859 39,534 41,504 36,404 38,261 37,006 36 Parent bank 18,526 26,304 33,252 36,375 34,672 37,570 39,304 34,329 35,731 34,462 37 Other banks in United States 1,475 1,044 964 1,007 882 786 861 843 1,118 1,036 38 Nonbanks 3,192 3,091 3,796 1,753 1,305 1,178 1,339 1,232 1,412 1,508 39 Claims on foreigners 68,138 64,560 60,472 57,706 55,637 59,552 56,872 59,062 56,939 58,763 40 Other branches of parent bank 26,361 28,635 28,474 25,368 25,982 28,363 26,961 29,872 28,655 30,224 41 Banks 23,251 19,188 18,494 18,298 17,536 18,200 16,884 16,579 16,399 15,984 42 Public borrowers 3,677 3,313 2,840 2,679 2,521 2,553 2,404 2,371 2,321 2,266 43 Nonbank foreigners 14,849 13,424 10,664 11,361 9,598 10,436 10,623 10,240 9,564 10,289 44 Other assets 3,697 5,575 5,019 7,195 6,768 7,622 7,710 7,961 7,838 7,983 Bahamas and Caymans 45 Total, ail currencies 142,592 160,321 170,639 165,401 164,684 164,836 172,762 176,006 167,385 164,908 46 Claims on United States 78,048 85,318 105,320 106,693 111,043 109,910 118,037 124,205 117,177 114,263 47 Parent bank 54,575 60,048 73,409 69,404 76,426 75,900 82,605 87,882 79,525 76,475 48 Other banks in United States 11,156 14,277 13,145 13,294 12,141 12,059 13,185 15,071 15,403 15,827 49 Nonbanks 12,317 10,993 18,766 23,995 22,476 21,951 22,247 21,252 22,249 21,961 50 Claims on foreigners 60,005 70,162 58,393 50,808 45,962 47,214 46,391 44,168 42,610 43,162 51 Other branches of parent bank 17,296 21,277 17,954 16,802 14,688 16,961 14,414 11,309 13,371 14,477 52 Banks 27,476 33,751 28,268 20,688 20,162 19,579 21,641 22,611 20,119 19,527 53 Public borrowers 7,051 7,428 5,830 5,407 5,435 5,289 5,340 5,217 4,764 4,753 54 Nonbank foreigners 8,182 7,706 6,341 7,911 5,677 5,385 4,996 5,031 4,356 4,405 55 Other assets 4,539 4,841 6,926 7,900 7,679 7,712 8,334 7,633 7,598 7,483 56 Total payable in U.S. dollars 136,813 151,434 163,518 160,821 160,274 159,643 167,182 170,780 160,832 159,484 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 • June 1990 3.14—Continued 1989 1990 LLiiaabbiilliittyy aaccccoouunntt 11998866 11998877 11998888 Aug. Sept/ Oct/ Nov. Dec. Jan/ Feb. All foreign countries 57 Total, all currencies 456,628 518,618 505,595 522,489 520,038 532,912 548,074 545,366 549,368 554,072 58 Negotiable CDs 31,629 30,929 28,511 29,524 26,680 26,776 26,555 23,500 23,510 23,620 59 To United States 152,465 161,390 185,577 177,542 182,899 183,484 190,149 197,239 178,636 181,164 60 Parent bank 83,394 87,606 114,720 110,917 120,853 123,281 128,799 138,803' 117,908 120,414 61 Other banks in United States . 15,646 20,355 14,737 13,269 12,866 11,333 10,811 11,704 11,850 11,990 62 Nonbanks 53,425 53,429 56,120 53,356 49,180 48,870 50,539 46,732' 48,878 48,760 63 To foreigners 253,775 304,803 270,923 288,566 283,196 294,294 302,346 296,850 315,807 317,575 64 Other branches of parent bank 95,146 124,601 111,267 113,752 104,850 114,175 115,484 119,591 126,965 127,045 65 Banks 77,809 87,274 72,842 75,589 77,530 75,601 81,200 76,452 81,858 77,447 66 Official institutions 17,835 19,564 15,183 17,591 17,348 19,484 18,938 16,750 19,004 20,637 67 Nonbank foreigners 62,985 73,364 71,631 81,634 83,468 85,034 86,724 84,057 87,980 92,446 68 Other liabilities 18,759 21,496 20,584 26,857 27,263 28,358 29,024 27,777 31,415 31,713 69 Total payable in U.S. dollars 336,406 361,438 367,483 379,771 372,664 385,117 392,983 396,282 384,579 385,203 70 Negotiable CDs 28,466 26,768 24,045 25,483 22,927 22,260 22,539 19,619 18,512 18,783 71 To United States 144,483 148,442 173,190 166,041 171,948 172,305 179,927 187,286 167,754 169,669 72 Parent bank 79,305 81,783 107,150 103,396 113,845 116,308 122,910 132,954'' 111,734 113,934 73 Other banks in United States . 14,609 18,951 13,468 11,964 11,688 10,129 9,512 10,519 10,560 10,684 74 Nonbanks 50,569 47,708 52,572 50,681 46,415 45,868 47,505 43,813' 45,460 45,051 75 To foreigners 156,806 177,711 160,766 175,270 165,215 177,610 177,459 176,460 185,192 183,378 76 Other branches of parent bank 71,181 90,469 84,021 87,123 77,986 85,780 82,912 87,636 91,736 90,360 77 Banks 33,850 35,065 28,493 31,939 30,146 31,886 33,370 30,537 32,551 28,741 78 Official institutions 12,371 12,409 8,224 10,680 10,195 11,446 11,713 9,873 11,063 11,740 79 Nonbank foreigners 39,404 39,768 40,028 45,528 46,888 48,498 49,464 48,414 49,842 52,537 80 Other liabilities 6,651 8,517 9,482 12,977 12,574 12,942 13,058 12,917 13,121 13,373 United Kingdom 81 Total, all currencies 140,917 158,695 156,835 158,860 156,866 163,426 164,916 161,947 166,915 169,727 82 Negotiable CDs 27,781 26,988 24,528 25,905 23,123 23,152 22,837 20,056 19,791 19,656 83 To United States 24,657 23,470 36,784 31,551 30,772 34,089 33,101 36,036 31,893 32,686 84 Parent bank 14,469 13,223 27,849 21,841 23,863 25,113 25,430 29,726 23,256 23,752 85 Other banks in United States 2,649 1,536 2,037 1,767 1,538 1,859 1,096 1,256 1,545 2,115 86 Nonbanks 7,539 8,711 6,898 7,943 5,371 7,117 6,575 5,054 7,092 6,819 87 To foreigners 79,498 98,689 86,026 88,661 90,862 93,508 96,509 92,307 99,720 101,565 88 Other branches of parent bank 25,036 33,078 26,812 24,326 24,766 26,931 26,656 27,397 29,216 28,074 89 Banks 30,877 34,290 30,609 30,790 31,242 30,531 33,016 29,780 33,568 32,110 90 Official institutions 6,836 11,015 7,873 8,868 8,877 10,255 9,724 8,551 9,368 10,758 91 Nonbank foreigners 16,749 20,306 20,732 24,677 25,977 25,791 27,113 26,579 27,568 30,623 92 Other liabilities 8,981 9,548 9,497 12,743 12,109 12,677 12,469 13,548 15,511 15,820 93 Total payable in U.S. dollars 99,707 102,550 105,907 106,915 103,724 110,980 109,116 108,178 106,676 106,416 94 Negotiable CDs 26,169 24,926 22,063 23,679 21,156 20,433 20,715 18,143 16,931 16,910 95 To United States 22,075 17,752 32,588 27,232 28,028 31,280 30,130 33,056 28,542 28,817 96 Parent bank 14,021 12,026 26,404 19,580 23,178 24,241 24,578 28,812 22,428 22,513 97 Other banks in United States . 2,325 1,308 1,752 1,502 1,362 1,691 863 1,065 1,217 1,807 98 Nonbanks 5,729 4,418 4,432 6,150 3,488 5,348 4,689 3,179 4,897 4,497 99 To foreigners 48,138 55,919 47,083 49,913 48,451 52,809 52,135 50,517 54,574 53,751 100 Other branches of parent bank 17,951 22,334 18,561 17,060 16,672 18,925 16,845 18,384 19,660 18,556 101 Banks 15,203 15,580 13,407 13,578 12,245 13,077 13,587 12,244 14,701 11,920 102 Official institutions 4,934 7,530 4,348 5,825 5,532 6,606 6,755 5,454 5,649 6,717 103 Nonbank foreigners 10,050 10,475 10,767 13,450 14,002 14,201 14,948 14,435 14,564 16,558 104 Other liabilities 3,325 3,953 4,173 6,091 6,089 6,458 6,136 6,462 6,629 6,938 Bahamas and Caymans 105 Total, all currencies 142,592 160,321 170,639 165,401 164,684 164,836 172,762 176,006 167,385 164,908 106 Negotiable CDs 847 885 953 691 669 669 671 678 681 671 107 To United States 106,081 113,950 122,332 113,179 117,611 114,701 121,021 124,859 114,829 113,137 108 Parent bank 49,481 53,239 62,894 58,765 64,859 66,292 70,107 75,579' 65,786 64,532 109 Other banks in United States . 11,715 17,224 11,494 10,076 10,026 8,088 8,438 8,883 8,677 8,198 110 Nonbanks 44,885 43,487 47,944 44,338 42,726 40,321 42,476 40,397' 40,366 40,407 111 To foreigners 34,400 43,815 45,161 48,712 43,818 46,906 47,521 47,382 48,974 48,726 112 Other branches of parent bank 12,631 19,185 23,686 25,770 20,678 23,086 23,352 23,414 24,911 25,110 113 Banks 8,617 10,769 8,336 8,613 8,802 8,985 9,137 8,823 8,439 8,059 114 Official institutions 2,719 1,504 1,074 1,081 928 1,003 1,131 1,097 1,528 1,290 115 Nonbank foreigners 10,433 12,357 12,065 13,248 13,410 13,832 13,901 14,048 14,096 14,267 116 Other liabilities 1,264 1,671 2,193 2,819 2,586 2,560 3,549 3,087 2,901 2,374 117 Total payable in U.S. dollars 138,774 152,927 162,950 160,800 160,133 160,028 167,835 171,250 162,141 160,212 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 1990 IItteemm 11998877 11998888 Aug/ Sept/ Oct/ Nov/ Dec/ Jan/ Feb.p 1 Total1 259,556 299,782 317,785 315,703 315,632 315,051 308,275 305,024 299,523 By type 2 Liabilities reported by banks in the United States 31,838 31,519 38,304 37,279 42,615 39,090 36,458 33,894 33,136 3 U.S. Treasury bills and certificates3 88,829 103,722 88,325 86,350 81,466 82,474 76,985 76,157 73,099 U.S. Treasury bonds and notes 4 Marketable 122,432 149,056 173,299 174,072 173,093 174,778 176,084 176,411 174,986 5 Nonmarketable4 300 523 553 557 561 564 568 572 576 6 U.S. securities other than U.S. Treasury securities 16,157 14,962 17,304 17,445 17,897 18,145 18,180 17,990 17,726 By area 7 Western Europe1 124,620 125,097 134,283 134,338 134,378 137,760 134,907 135,277 133,264 8 Canada 4,961 9,584 9,624 9,026 8,688 9,130 9,553 9,368 8,259 9 Latin America and Caribbean 8,328 10,099 7,991 9,516 10,003 9,892 8,808 7,926 8,308 10 Asia 116,098 145,608 157,269 154,549 154,130 149,745 147,038 143,967 140,919 11 Africa 1,402 1,369 810 867 910 1,019 994 834 1,020 12 Other countries6 4,147 7,501 7,257 6,849 6,962 6,941 6,406 7,077 7,177 1. Includes the Bank for International Settlements. bonds and notes payable in foreign currencies. 2. Principally demand deposits, time deposits, bankers acceptances, commer- 5. Debt securities of U.S. government corporations and federally sponsored cial paper, negotiable time certificates of deposit, and borrowings under repur- agencies, and U.S. corporate stocks and bonds. chase agreements. 6. Includes countries in Oceania and Eastern Europe. 3. Includes nonmarketable certificates of indebtedness (including those payable NOTE. Based on Treasury Department data and on data reported to the in foreign currencies through 1974) and Treasury bills issued to official institutions Treasury Department by banks (including Federal Reserve Banks) and securities of foreign countries. dealers in the United States. 4. Excludes notes issued to foreign official nonreserve agencies. Includes 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies1 Millions of dollars, end of period 1989 IItteemm 11998866 11998877 11998888 Mar/ June' Sept/ Dec/ 1 Banks' own liabilities 29,702 55,438 74,980 76,668 69,213 72,782 66,598 2 Banks' own claims 26,180 51,271 68,983 73,050 62,874 70,929 65,306 3 Deposits 14,129 18,861 25,100 26,084 23,922 22,998 20,516 4 Other claims 12,052 32,410 43,884 46,966 38,952 47,931 44,790 5 Claims of banks' domestic customers2 2,507 551 364 376 723 2,558 3,100 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 • June 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 1990 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998877 11998888 Aug/ Sept/ Oct/ Nov/ Dec/ Jan. Feb.p 1 All foreigners 618,874 685,339 735,896 684,366 702,613 709,321 731,874 735,896 704,548 686,729 2 Banks' own liabilities 470,070 514,532 576,515 517,514 535,044 544,913 565,702 576,515 543,337 528,483 3 Demand deposits 22,383 21,863 21,722 19,429 21,467 20,955 21,315 21,722 19,858 20,973 4 Time deposits 148,374 152,164 170,472 156,233 157,424 162,531 166,044 170,472 160,807 157,617 5 Other3 51,677 51,366 65,758 63,236 56,399 65,085 66,130 65,758 61,131 56,871 6 Own foreign offices 247,635 289,138 318,563 278,616 299,753 296,342 312,213 318,563 301,540 293,021 7 Banks' custody liabilities5 148,804 170,807 159,380 166,852 167,570 164,409 166,172 159,380 161,211 158,246 8 U.S. Treasury bills and certificates6 101,743 115,056 91,100 100,321 99,856 95,893 97,018 91,100 90,703 87,800 9 Other negotiable and readily transferable instruments7 16,776 16,426 19,526 20,417 20,226 19,883 19,236 19,526 18,658 18,655 10 Other 30,285 39,325 48,754 46,114 47,487 48,633 49,918 48,754 51,851 51,791 11 Nonmonetary international and regional organizations8 4,464 3,224 4,772 4,418 4,409 5,833 5,905 4,772 4,728 3,970 12 Banks' own liabilities 2,702 2,527 3,156 3,402 2,811 3,797 4,587 3,156 3,129 2,423 13 Demand deposits 124 71 96 66 89 53 62 96 36 55 14 Time deposits 1,538 1,183 927 1,079 1,159 1,107 1,075 927 1,048 615 15 Other3 1,040 1,272 2,133 2,257 1,555 2,638 3,449 2,133 2,044 1,753 16 Banks' custody liabilities5 1,761 698 1,616 1,016 1,598 2,036 1,318 1,616 1,599 1,547 17 U.S. Treasury bills and certificates6 265 57 197 107 84 568 321 197 102 160 18 Other negotiable and readily transferable instruments7 1,497 641 1,417 909 1,479 1,454 996 1,417 1,497 1,387 19 Other 0 0 2 1 35 14 0 2 0 0 20 Official institutions9 120,667 135,241 113,443 126,629 123,629 124,081 121,563 113,443 110,051 106,235 7.1 Banks' own liabilities 28,703 27,109 31,070 33,339 32,469 37,538 34,119 31,070 30,347 29,946 22 Demand deposits 1,757 1,917 2,189 1,625 1,936 1,941 1,829 2,189 1,598 1,661 23 Time deposits 12,843 9,767 10,530 8,918 9,545 12,101 11,237 10,530 9,363 10,530 24 Other3 14,103 15,425 18,351 22,796 20,989 23,496 21,053 18,351 19,385 17,755 25 Banks' custody liabilities5 91,965 108,132 82,373 93,290 91,159 86,542 87,444 82,373 79,704 76,289 26 U.S. Treasury bills and certificates6 88,829 103,722 76,985 88,325 86,350 81,466 82,474 76,985 76,157 73,099 27 Other negotiable and readily transferable instruments7 2,990 4,130 5,028 4,767 4,620 4,774 4,845 5,028 3,459 2,892 28 Other 146 280 361 198 189 303 125 361 88 298 29 Banks10 414,280 459,523 514,395 458,722 480,989 483,498 507,346 514,395 491,426 475,331 30 Banks' own liabilities 371,665 409,501 453,880 401,765 420,212 421,805 444,491 453,880 427,057 411,842 31 Unaffiliated foreign banks 124,030 120,362 135,317 123,149 120,466 125,463 132,278 135,317 125,517 118,821 32 Demand deposits 10,898 9,948 10,339 9,234 10,701 9,885 10,736 10,339 9,601 10,352 33 Time deposits 79,717 80,189 92,278 80,754 80,935 83,983 87,444 92,278 81,570 76,340 34 Other3 33,415 30,226 32,701 33,161 28,830 31,594 34,099 32,701 34,346 32,129 35 Own foreign offices 247,635 289,138 318,563 278,616 299,746 296,342 312,213 318,563 301,540 293,021 36 Banks' custody liabilities5 42,615 50,022 60,514 56,957 60,777 61,693 62,855 60,514 64,369 63,488 37 U.S. Treasury bills and certificates 9,134 7,602 9,367 8,041 9,230 9,427 9,670 9,367 9,614 9,342 38 Other negotiable and readily transferable instruments7 5,392 5,725 5,124 5,604 5,408 5,102 4,797 5,124 5,090 4,918 39 Other 28,089 36,694 46,023 43,311 46,138 47,165 48,388 46,023 49,665 49,229 40 Other foreigners 79,463 87,351 103,286 94,597 93,586 95,909 97,060 103,286 98,344 101,193 41 Banks' own liabilities 67,000 75,396 88,409 79,008 79,551 81,773 82,505 88,409 82,805 84,272 47. Demand deposits 9,604 9,928 9,098 8,504 8,741 9,077 8,689 9,098 8,623 8,906 43 Time deposits 54,277 61,025 66,738 65,482 65,784 65,338 66,288 66,738 68,826 70,132 44 Other. 3,119 4,443 12,573 5,022 5,026 7,357 7,528 12,573 5,356 5,234 45 Banks' custody liabilities5 12,463 11,956 14,877 15,589 14,035 14,137 14,555 14,877 15,539 16,922 46 U.S. Treasury bills and certificates 3,515 3,675 4,551 3,848 4,192 4,432 4,553 4,551 4,830 5,199 47 Other negotiable and readily transferable instruments7 6,898 5,929 7,958 9,137 8,718 8,553 8,597 7,958 8,612 9,457 48 Other 2,050 2,351 2,368 2,604 1,125 1,152 1,405 2,368 2,098 2,265 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 7,314 6,425 7,203 7,465 7,515 7,434 7,050 7,203 8,576 8,457 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 1990 AArreeaa aanndd ccoouunnttrryy 11998877 11998888 11998899'' Aug.' Sept.' Oct.' Nov.' Dec.' Jan. Feb.'' 1 Total 618,874 685,339 735,896 684,366 702,613 709,321 731,874 735,896 704,548 686,729 2 Foreign countries 614,411 682,115 731,124 679,948 698,204 703,488 725,970 731,124 699,820 682,759 3 Europe 234,641 231,912 237,292 226,836 223,312 233,250 242,602 237,292 230,726 223,652 4 Austria 920 1,155 1,232 1,414 1,354 1,201 1,475 1,232 1,422 1,817 5 Belgium-Luxembourg 9,347 10,022 10,491 9,310 10,169 10,852 10,333 10,491 11,348 11,395 6 Denmark 760 2,200 1,410 2,053 1,378 1,444 1,913 1,410 1,240 1,244 7 Finland 377 285 570 461 519 464 577 570 685 611 8 France 29,835 24,777 26,893 24,956 23,137 23,971 26,018 26,893 22,985 21,840 9 Germany 7,022 6,772 7,578 7,624 8,404 8,757 9,145 7,578 7,580 8,599 10 Greece 689 672 1,017 834 803 850 1,030 1,017 1,092 1,024 11 Italy 12,073 14,599 16,159 14,624 14,567 14,244 14,673 16,159 13,064 11,978 12 Netherlands 5,014 5,316 6,613 5,326 5,221 5,634 7,259 6,613 7,718 8,218 13 Norway 1,362 1,559 2,401 1,456 1,701 1,344 1,954 2,401 1,256 997 14 Portugal 801 903 2,407 1,949 2,209 2,293 2,251 2,407 2,381 2,285 15 Spain 2,621 5,494 4,364 5,420 5,304 5,007 4,911 4,364 5,421 4,278 16 Sweden 1,379 1,284 1,491 2,005 1,682 1,665 1,921 1,491 2,303 1,468 17 Switzerland 33,766 34,199 34,511 29,157 29,218 29,765 31,714 34,511 33,693 33,174 18 Turkey 703 1,012 1,818 1,025 1,088 1,202 1,372 1,818 1,084 886 19 United Kingdom 116,852 111,811 102,334 103,800 102,055 106,371 108,914 102,334 101,928 99,287 20 Yugoslavia 710 529 1,474 693 774 858 1,017 1,474 1,349 1,401 21 Other Western Europe 9,798 8,598 13,563 13,830 12,923 16,394 15,170 13,563 12,814 11,439 22 U.S.S.R 32 138 350 202 244 338 286 350 229 377 23 Other Eastern Europe 582 591 618 697 564 597 669 618 1,138 1,335 24 Canada 30,095 21,062 18,861 17,058 18,016 16,744 18,245 18,861 19,243 21,611 25 Latin America and Caribbean 220,372 271,146 310,737 278,200 291,239 289,329 299,765 310,737 300,151 296,222 26 Argentina 5,006 7,804 7,294 8,121 8,552 8,178 7,803 7,294 7,368 7,520 27 Bahamas 74,767 86,863 99,341 90,341 90,850 93,246 96,386 99,341 95,223 94,162 28 Bermuda 2,344 2,621 2,869 2,267 2,182 2,525 2,628 2,869 2,539 2,245 29 Brazil 4,005 5,314 6,287 5,600 5,944 6,139 6,282 6,287 6,660 7,286 30 British West Indies 81,494 113,840 138,177 116,967 127,247 122,108 129,378 138,177 131,818 126,839 31 Chile 2,210 2,936 3,209 2,791 2,800 3,050 3,097 3,209 3,045 3,129 32 Colombia 4,204 4,374 4,652 4,486 4,317 5,006 4,805 4,652 4,395 4,593 33 Cuba 12 10 10 10 14 10 15 10 30 10 34 Ecuador 1,082 1,379 1,391 1,393 1,381 1,359 1,343 1,391 1,229 1,304 35 Guatemala 1,082 1,195 1,312 1,299 1,313 1,296 1,309 1,312 1,332 1,362 36 Jamaica 160 269 209 233 235 209 191 209 202 217 37 Mexico 14,480 15,185 15,398 14,449 15,608 15,285 15,012 15,398 14,767 15,743 38 Netherlands Antilles 4,975 6,420 6,300 6,100 6,090 5,973 6,287 6,300 6,189 6,520 39 Panama 7,414 4,353 4,361 4,590 4,610 4,579 4,537 4,361 4,569 4,746 40 Peru 1,275 1,671 1,982 1,807 1,852 1,924 1,944 1,982 1,921 1,968 41 Uruguay 1,582 1,898 2,283 2,143 2,362 2,235 2,335 2,283 2,418 2,399 42 Venezuela 9,048 9,147 9,466 9,459 9,579 9,609 9,855 9,466 9,841 9,628 43 Other 5,234 5,868 6,196 6,142 6,302 6,598 6,558 6,196 6,604 6,551 44 121,288 147,838 155,857 147,025 154,829 151,967 151,679 155,857 140,923 131,038 China 45 Mainland 1,162 1,895 1,871 1,706 1,808 1,989 1,659 1,871 1,780 1,569 46 Taiwan 21,503 26,058 19,562 25,530 24,206 22,492 21,316 19,562 19,147 17,880 47 Hong Kong 10,180 12,248 12,245 12,393 12,404 12,209 12,111 12,245 11,653 10,957 48 India 582 699 780 960 881 842 990 780 907 772 49 Indonesia 1,404 1,180 1,279 1,057 1,045 1,147 1,303 1,279 1,057 1,161 50 Israel 1,292 1,461 1,243 971 1,058 2,237 1,096 1,243 1,038 909 51 Japan 54,322 74,015 80,991 71,513 79,527 74,039 75,368 80,991 70,065 64,896 52 Korea 1,637 2,541 3,213 3,086 3,227 3,288 3,528 3,213 2,616 2,559 53 Philippines 1,085 1,163 1,759 1,125 1,097 1,185 1,269 1,759 1,143 1,254 54 Thailand 1,345 1,236 2,093 1,793 1,445 1,707 1,909 2,093 2,379 2,493 55 Middle-East oil-exporting countries3 13,988 12,083 13,362 12,560 13,057 13,485 13,610 13,362 13,258 12,546 56 Other 12,788 13,260 17,459 14,330 15,073 17,346 17,519 17,459 15,879 14,042 57 Africa 3,945 3,991 3,819 3,293 3,561 3,507 3,767 3,819 4,292 4,920 58 Egypt 1,151 911 685 555 578 581 637 685 640 721 59 Morocco 194 68 78 73 97 72 76 78 86 95 60 South Africa 202 437 205 203 249 222 293 205 255 261 61 Zaire 67 85 86 87 81 71 60 86 82 77 62 Oil-exporting countries 1,014 1,017 1,120 900 1,038 1,048 1,120 1,120 1,695 2,259 63 Other 1,316 1,474 1,644 1,475 1,518 1,513 1,581 1,644 1,535 1,507 64 Other countries 4,070 6,165 4,558 7,537 7,248 8,690 9,912 4,558 4,485 5,317 65 Australia 3,327 5,293 3,866 6,742 6,540 8,072 9,141 3,866 3,806 4,597 66 All other 744 872 692 794 708 618 771 692 679 719 67 Nonmonetary international and regional organizations 4,464 3,224 4,772 4,418 4,409 5,833 5,905 4,772 4,728 3,970 68 International 2,830 2,503 3,825 3,084 2,855 4,515 4,768 3,825 3,656 2,969 69 Latin American regional 1,272 589 684 690 1,201 919 586 684 857 655 70 Other regional6 362 133 263 644 353 400 551 263 214 346 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 • June 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 1990 Area and country 11998877 11998888 11998899 Aug. Sept.' Oct.' Nov.' Dec.' Jan. Feb/ 1 Total 459,877 491,165 535,706' 489,466' 500,211 515,422 535,459 535,706 514,796 501,713 2 Foreign countries 456,472 489,094 532,055' 486,300' 497,264 512,771 532,471 532,055 510,494 498,200 3 Europe 102,348 116,928 118,956' 107,258' 111,860 113,288 111,987 118,956 105,614 104,466 4 Austria 793 483 415 544' 475 575 559 415 658 429 5 Belgium-Luxembourg 9,397 8,515 6,478 7,498' 7,391 7,497 6,606 6,478 6,645 6,995 6 Denmark 717 483 582 808' 557 513 609 582 664 641 7 Finland 1,010 1,065 1,027 1,401 1,233 1,707 1,129 1,027 1,214 1,218 8 France 13,548 13,243 16,146 16,415 16,249 16,391 16,055 16,146 15,832 16,366 9 Germany 2,039 2,329 2,865 3,316 3,466 3,371 2,657 2,865 1,990 2,464 10 Greece 462 433 788 624 634 650 700 788 735 773 11 Italy 7,460 7,936 6,662 5,390' 5,938 5,472 5,718 6,662 4,974 5,431 12 Netherlands 2,619 2,541 1,904 1,441' 1,991 1,886 2,259 1,904 1,656 1,567 13 Norway 934 455 609 665 644 647 635 609 599 672 14 Portugal 477 261 376 264 252 258 275 376 309 288 15 Spain 1,853 1,823 1,930 1,738 1,684 1,733 1,840 1,930 2,766 2,038 16 Sweden 2,254 1,977 1,773' 2,046 2,286 2,087 2,555 1,773 2,718 2,158 17 Switzerland 2,718 3,895 6,141' 4,479 5,018 4,522 4,940 6,141 4,797 4,911 18 Turkey 1,680 1,233 1,049 960 1,028 1,021 1,044 1,049 1,074 1,073 19 United Kingdom 50,823 65,706 65,426' 54,806' 57,996 59,838 59,919 65,426 54,525 52,215 20 Yugoslavia 1,700 1,390 1,329 1,346 1,338 1,373 1,281 1,329 1,243 1,158 21 Other Western Europe2 619 1,152 1,302 1,247 1,312 1,504 1,245 1,302 1,133 1,471 22 U.S.S.R 389 1,255 1,234 1,451' 1,569 1,448 1,075 1,234 1,204 1,322 23 Other Eastern Europe3 852 754 921 819 799 794 883 921 879 1,277 24 Canada 25,368 18,889 16,087 15,077' 14,791 13,800 16,177 16,087 18,335 18,482 25 Latin America and Caribbean 214,789 214,264 231,540' 216,733' 220,832 221,040 232,878 231,540 225,559 221,049 26 Argentina 11,996 11,826 9,444 10,730 10,460 10,444 10,274 9,444 9,116 8,736 27 Bahamas 64,587 66,954 78,656' 68,032' 70,845 71,379 78,487 78,656 74,274 72,574 28 Bermuda 471 483 1,315 522 1,104 804 841 1,315 494 394 29 Brazil 25,897 25,735 23,888 25,597 25,002 25,075 24,418 23,888 23,649 23,235 30 British West Indies 50,042 55,888 68,572' 62,165' 64,416 63,840 69,450 68,572 70,813 70,064 31 Chile 6,308 5,217 4,353 4,803 4,707 4,601 4,474 4,353 4,214 4,219 3 3 2 3 C Cu ol b o a m bia 2,740j 2,944 1 2,781 J ' 2,504 J 2,477 2,800 2,784 2,781 2,532 0 2,604 0 34 Ecuador 2,286 2,075 1,698 1,918 1,905 1,864 1,858 1,698 1,594 1,570 35 Guatemala4 144 198 197 203 196 188 190 197 213 200 36 Jamaica4 188 212 297 272 282 270 260 297 284 275 37 Mexico 29,532 24,637 23,563 23,169 22,813 22,751 23,292 23,563 22,194 21,447 38 Netherlands Antilles 980 1,306 1,921' 1,090' 1,175 1,201 1,099 1,921 1,763 1,707 39 Panama 4,744 2,521 1,74C 2,031' 1,829 1,834 1,792 1,740 1,748 1,697 40 Peru 1,329 1,013 771 870 823 849 836 771 750 752 41 Uruguay 963 910 928 866 899 903 915 928 932 935 42 Venezuela 10,843 10,733 9,688 10,024 10,061 10,269 10,119 9,688 9,306 8,959 43 Other Latin America and Caribbean 1,738 1,612 1,726 1,936 1,838 1,965 1,787 1,726 1,682 1,680 44 Asia 106,096 130,881 157,187' 137,688' 139,909 153,744 158,766 157,187 151,949 144,173 China Mainland 968 762 634 576' 616 594 610 634 625 628 46 Taiwan 4,592 4,184 2,776' 3,380' 3,358 2,858 2,702 2,776 2,137 1,838 47 Hong Kong 8,218 10,143 11,103' 8,795' 10,353 10,047 10,442 11,103 7,679 6,537 48 India 510 560 621 549' 638 617 637 621 625 893 49 Indonesia 580 674 651 614 615 685 655 651 641 611 50 Israel 1,363 1,136 813 911 859 1,185 758 813 948 751 51 Japan 68,658 90,149 111,066' 96,099' 96,876 110,425 114,498 111,066 113,127 108,257 52 Korea 5,148 5,213 5,296' 6,008' 5,694 5,713 5,838 5,296 5,156 4,879 53 Philippines 2,071 1,876 1,344 1,543 1,617 1,549 1,498 1,344 1,307 1,173 54 Thailand 496 848 1,140' 1,106' 1,191 1,046 1,064 1,140 1,171 1,046 55 Middle East oil-exporting countries 4,858 6,213 10,149 8,887' 8,589 8,357 8,675 10,149 8,655 9,217 56 Other Asia 8,635 9,122 11,594' 9,221 9,502 10,669 11,387 11,594 9,879 8,344 57 Africa 4,742 5,718 5,931' 6,032 6,029 5,771 5,914 5,931 6,647 7,302 58 Egypt 521 507 502 494 501 475 471 502 470 492 59 Morocco 542 511 559 535 524 538 547 559 575 588 60 South Africa 1,507 1,681 1,628 1,713 1,709 1,679 1,686 1,628 1,619 1,625 61 Zaire 15 17 16 16 20 15 16 16 16 17 62 Oil-exporting countries6 1,003 1,523 1,689 1,608 1,629 1,554 1,641 1,689 1,708 3,088 63 Other 1,153 1,479 1,537' 1,666 1,647 1,510 1,553 1,537 2,260 1,491 64 Other countries 3,129 2,413 2,354' 3,513' 3,842 5,129 6,750 2,354 2,390 2,728 65 Australia 2,100 1,520 1,781' 2,500' 3,077 4,301 6,174 1,781 1,761 1,824 66 All other 1,029 894 573' 1,013 765 828 576 573 629 903 67 Nonmonetary international and regional organizations7 3,404 2,071 3,651' 3,166' 2,947 2,651 2,987 3,651 4,302 3,513 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 1990 TTyyppee ooff ccllaaiimm 11998877 11998888 11998899rr Aug/ Sept/ Oct/ Nov/ Dec/ Jan. Feb." 1 Total 444444499999997777777,,,,,,,666666633333335555555 555555533333338888888,,,,,,,666666688888889999999 555555588888889999999,,,,,,,777777722222221111111 555555555555552222222,,,,,,,333333355555550000000 555555588888889999999,,,,,,,777777722222221111111 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 444444455555559999999,,,,,,,888888877777777777777 444444499999991111111,,,,,,,111111166666665555555 555555533333335555555,,,,,,,777777700000006666666 489,466 555555500000000000000,,,,,,,222222211111111111111 515,422 535,459 555555533333335555555,,,,,,,777777700000006666666 514,796 501,713 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 66666664444444,,,,,,,666666600000005555555 66666662222222,,,,,,,666666655555558888888 66666660000000,,,,,,,555555522222223333333 63,317 66666662222222,,,,,,,000000099999993333333 63,398 62,488 66666660000000,,,,,,,555555522222223333333 59,213 56,718 44 OOwwnn ffoorreeiiggnn ooffffiicceess 222222222222224444444,,,,,,,777777722222227777777 222222255555557777777,,,,,,,444444433333336666666 222222299999997777777,,,,,,,111111188888884444444 253,006 222222266666666666666,,,,,,,666666633333337777777 277,330 297,592 222222299999997777777,,,,,,,111111188888884444444 292,451 286,314 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 111111122222227777777,,,,,,,666666600000009999999 111111122222229999999,,,,,,,444444422222225555555 111111133333334444444,,,,,,,888888844444442222222 132,245 111111133333330000000,,,,,,,999999922222225555555 131,133 133,803 111111133333334444444,,,,,,,888888844444442222222 123,788 120,217 66 DDeeppoossiittss 66666660000000,,,,,,,666666688888887777777 66666665555555,,,,,,,888888899999998888888 77777777777777,,,,,,,999999900000000000000 72,728 77777772222222,,,,,,,666666600000005555555 72,220 75,629 77777777777777,,,,,,,999999900000000000000 69,695 67,226 77 OOtthheerr 66666666666666,,,,,,,999999922222222222222 66666663333333,,,,,,,555555522222227777777 55555556666666,,,,,,,999999944444442222222 59,516 55555558888888,,,,,,,333333311111119999999 58,913 58,174 55555556666666,,,,,,,999999944444442222222 54,094 52,990 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444442222222,,,,,,,999999933333336666666 44444441111111,,,,,,,666666644444446666666 44444443333333,,,,,,,111111155555558888888 40,899 44444440000000,,,,,,,555555555555556666666 43,562 41,577 44444443333333,,,,,,,111111155555558888888 39,343 38,465 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss33...... 33333337777777,,,,,,,777777755555558888888 44444447777777,,,,,,,555555522222224444444 55555554444444,,,,,,,000000011111114444444 55555552222222,,,,,,,111111133333339999999 55555554444444,,,,,,,000000011111114444444 3333333,,,,,,,666666699999992222222 8888888,,,,,,,222222288888889999999 11111114444444,,,,,,,999999911111116666666 11111111111111,,,,,,,222222255555553333333 11111114444444,,,,,,,999999911111116666666 11 Negotiable and readily transferable 22222226666666,,,,,,,666666699999996666666 22222225555555,,,,,,,777777700000000000000 22222224444444,,,,,,,555555500000007777777 22222224444444,,,,,,,222222277777777777777 22222224444444,,,,,,,555555500000007777777 12 Outstanding collections and other 7777777,,,,,,,333333377777770000000 11111113333333,,,,,,,555555533333335555555 11111114444444,,,,,,,555555599999991111111 11111116666666,,,,,,,666666600000009999999 11111114444444,,,,,,,555555599999991111111 13 MEMO: Customer liability on 22222223333333,,,,,,,111111100000007777777 11111119999999,,,,,,,555555599999996666666 11111112222222,,,,,,,888888800000006666666 11111113333333,,,,,,,111111111111119999999 11111112222222,,,,,,,888888800000006666666 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States .... 40,909 45,568 45,592 50,111 47,292 45,742 47,288 45,592 44,081 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 1989 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998866 11998877 11998888 Mar/ June' Sept/ Dec. 1 Total 232,295 235,130 233,184 231,600 231,606 236,265 238,707 By borrower 2 Maturity of 1 year or less 160,555 163,997 172,634 168,527 167,663 169,192 178,136 3 Foreign public borrowers 24,842 25,889 26,562 24,499 24,295 24,054 23,940 4 All other foreigners 135,714 138,108 146,071 144,028 143,368 145,138 154,196 5 Maturity over 1 year 71,740 71,133 60,550 63,073 63,944 67,072 60,571 6 Foreign public borrowers 39,103 38,625 35,291 38,430 38,605 41,806 36,153 7 All other foreigners 32,637 32,507 25,259 24,643 25,339 25,266 24,418 By area Maturity of 1 year or less 8 Europe 61,784 59,027 55,909 57,697 58,260 53,030 53,584 9 Canada 5,895 5,680 6,282 5,119 5,693 6,236 5,901 10 Latin America and Caribbean 56,271 56,535 57,991 53,255 50,527 52,320 53,368 11 Asia 29,457 35,919 46,224 45,703 45,448 50,358 57,692 1? Africa 2,882 2,833 3,337 3,610 3,601 3,514 3,263 13 All other3 4,267 4,003 2,891 3,143 4,134 3,735 4,329 Maturity of over 1 year 14 Europe 6,737 6,696 4,666 4,503 4,554 8,746 4,769 15 Canada 1,925 2,661 1,922 2,309 2,592 2,459 2,328 16 Latin America and Caribbean 56,719 53,817 47,547 49,790 50,095 48,586 45,973 17 Asia 4,043 3,830 3,613 3,699 3,823 4,223 4,139 18 Africa 1,539 1,747 2,301 2,292 2,408 2,475 2,678 19 All other3 777 2,381 501 480 472 584 684 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 • June 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 Dec. Mar. June Sept. Dec. Mar. June Sept. Dec. 1 Total 389.1 386.5 382.4 370.9 351.9 354.0 346.3 345.3 339.2 345.0' 339.9'' 2 G-10 countries and Switzerland 147.0 156.6 159.7 156.3 150.7 148.7 152.7 145.1 144.7 145.9' 152.9 i Belgium-Luxembourg 9.4 8.4 10.0 9.1 9.2 9.5 9.0 8.6 7.8 6.9 6.3 4 France 12.3 13.6 13.7 11.8 10.9 10.3 10.5 11.2 10.8 11.1 11.7 5 Germany 10.5 11.6 12.6 11.8 10.6 9.2 10.3 10.2 10.6 10.4 10.5 6 Italy 9.7 9.0 7.5 7.4 6.3 5.6 6.8 5.2 6.1 6.8 7.4 7 Netherlands 3.8 4.6 4.1 3.3 3.2 2.9 2.7 2.8 2.8 2.4 3.1 8 Sweden 2.8 2.4 2.1 2.1 1.9 1.9 1.8 2.3 1.8 2.0 2.0 9 Switzerland 4.4 5.8 5.6 5.1 5.6 5.2 5.4 5.1 5.4 6.1 7.1 10 United Kingdom 63.3 70.9 68.8 71.7 70.4 67.6 66.2 65.3 64.2 63.5' 66.8 11 Canada 6.8 5.2 5.5 4.7 5.3 4.9 5.0 4.0 5.1 5.9 6.1 12 24.1 25.1 29.8 29.2 27.3 31.6 34.9 30.4 30.1 30.8 31.9 13 Other developed countries 30.3 26.1 26.4 26.4 24.0 23.0 21.0 21.0 21.1 20.9 20.7 14 Austria 1.6 1.7 1.9 1.6 1.6 1.6 1.5 1.4 1.7 1.5 1.7 15 Denmark 2.4 1.7 1.7 1.4 1.1 1.2 1.1 1.1 1.4 1.1 1.1 16 Finland 1.6 1.4 1.2 1.0 1.2 1.3 1.1 1.0 1.0 1.1 1.0 17 Greece 2.6 2.3 2.0 2.3 2.1 2.1 1.8 2.1 2.3 2.3 2.5 18 Norway 2.9 2.4 2.2 1.9 1.9 2.0 1.8 1.6 1.8 1.4 1.4 19 Portugal 1.3 .9 .6 .5 .4 .4 .4 .4 .6 .4 .4 20 5.8 5.8 8.0 8.9 7.2 6.3 6.2 6.6 6.2 6.9 7.1 21 Turkey 2.0 2.0 2.0 2.0 1.8 1.6 1.5 1.3 1.1 1.1 1.2 22 Other Western Europe 2.0 1.5 1.6 1.9 1.7 1.9 1.3 1.1 1.1 1.0 .7 23 South Africa 3.2 3.0 2.9 2.8 2.8 2.7 2.4 2.2 2.1 2.1 2.0 24 Australia 5.0 3.4 2.4 2.0 2.2 1.8 1.8 2.4 1.9 2.1 1.4 25 OPEC countries3 21.5 19.4 17.4 17.6 17.0 17.9 16.6 16.2 16.0 16.2 17.2 2b Ecuador 2.1 2.2 1.9 1.9 1.8 1.8 1.7 1.6 1.5 1.5 1.3 27 Venezuela 9.0 8.7 8.1 8.1 8.0 7.9 7.9 7.9 7.5 7.3 7.1 28 Indonesia 3.0 2.5 1.9 1.8 1.8 1.8 1.7 1.7 1.9 2.0 2.0 29 Middle East countries 5.4 4.3 3.6 3.9 3.5 4.6 3.4 3.3 3.4 3.5 5.0 30 African countries 2.0 1.8 1.9 1.9 1.9 1.9 1.9 1.7 1.6 1.9 1.8 31 Non-OPEC developing countries 105.0 99.6 97.8 94.4 91.8 87.2 85.3 85.4 83.1 80.8 78.0 Latin America 32 Argentina 8.9 9.5 9.5 9.6 9.5 9.3 9.0 8.4 7.9 7.6 6.4 33 Brazil 25.5 25.3 24.7 23.8 23.7 22.4 22.4 22.7 22.0 20.8 19.1 34 Chile 7.0 7.1 6.9 6.6 6.4 6.3 5.6 5.7 5.1 4.9 4.6 35 Colombia 2.6 2.1 2.0 2.0 2.2 2.1 2.1 1.9 1.7 1.6 1.8 3b Mexico 24.3 24.0 23.5 22.4 21.1 20.4 18.8 18.0 17.5 17.0 17.8 37 Peru 1.8 1.4 1.1 1.1 .9 .8 .8 .7 .6 .6 .6 38 Other Latin America 3.5 3.1 2.8 2.8 2.6 2.5 2.6 2.7 2.6 2.9 2.8 Asia China 39 Mainland .5 .4 .3 .4 .4 .2 .3 .5 .3 .3 .3 40 Taiwan 4.5 4.9 8.2 6.1 4.9 3.2 3.7 4.9 5.2 5.0 4.5 41 India 1.2 1.2 1.9 2.1 2.3 2.0 2.1 2.6 2.4 2.7 3.1 42 Israel 1.6 1.5 1.0 1.0 1.0 1.0 1.2 .9 .8 .7 .7 43 Korea (South) 9.3 6.7 5.0 5.7 5.9 6.0 6.1 6.1 6.6 6.5 5.9 44 Malaysia 2.4 2.1 1.5 1.5 1.5 1.7 1.6 1.7 1.6 1.7 1.7 45 Philippines 5.7 5.4 5.2 5.1 4.9 4.7 4.5 4.4 4.4 4.0 4.1 46 Thailand 1.4 .9 .7 1.0 1.1 1.2 1.1 1.0 1.0 1.3 1.3 47 Other Asia 1.0 .7 .7 .7 .8 .8 .9 .8 .8 1.0 1.0 Africa 4488 Egypt 1.0 .7 .6 .5 .6 .5 .4 .5 .6 .5 .4 49 Morocco .9 .9 .9 .9 .9 .8 .9 .9 .9 .8 .9 50 Zaire .1 .1 .0 .1 .1 .0 .0 .0 .0 .0 .0 51 Other Africa4 1.9 1.6 1.3 1.2 1.2 1.2 1.1 1.1 1.1 1.0 1.0 52 Eastern Europe 4.4 3.5 3.2 3.1 3.3 3.1 3.6 3.5 3.4 3.5 3.5 53 U.S.S.R .1 .1 .3 .3 .4 .4 .7 .7 .6 .8 .7 54 Yugoslavia 2.4 2.0 1.8 1.9 1.9 1.8 1.8 1.7 1.7 1.7 1.5 55 Other 1.9 1.4 1.1 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.2 56 Offshore banking centers 64.0 61.5 54.5 51.5 43.0 47.3 44.2 48.5 43.1 48.9' 37.4' 57 Bahamas 21.5 22.4 17.3 15.9 8.9 12.9 11.0 15.8 11.0 11.1' 5.8' 58 Bermuda .7 .6 .6 .8 1.0 .9 .9 1.1 .7 1.3 1.7 59 Cayman Islands and other British West Indies 12.2 12.3 13.5 11.6 10.3 11.9 12.9 12.0 10.8 15.3' 9.4 bO Netherlands Antilles 2.2 1.8 1.2 1.3 1.2 1.2 1.0 .9 1.0' 1.1' 2.3' bl Panama5 6.0 4.0 3.7 3.2 3.0 2.6 2.5 2.2 1.9 1.5 11..44 b2 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 ..11 b3 Hong Kong 11.5 11.1 11.2 11.3 11.6 10.5 9.6 9.6 10.4 10.7 9.6 64 Singapore 9.8 9.2 7.0 7.4 6.9 7.0 6.1 6.8 7.3 7.8 7.0 65 Others6 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 66 Miscellaneous and unallocated7 16.9 19.8 23.2 21.5 22.2 26.7 22.6 25.1 27.4 28.5' 30.1 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 Type, and area or country 11998866 11998877 11998888 Sept. Dec. Mar. June Sept. Dec." 1 Total 25,587 28,302 33,989 32,614' 33,989" 37,646" 37,371" 35,263" 39,689 2 Payable in dollars 21,749 22,785 28,382 27,365'' 28,382" 31,856" 32,298" 30,425" 34,851 3 Payable in foreign currencies 3,838 5,517 5,606 5,249' 5,606" 5,790 5,073 4,838 4,838 By type 4 Financial liabilities 12,133 12,424 15,480 15,314' 15,480" 17,738" 17,324' 16,256" 17,409 5 Payable in dollars 9,609 8,643 11,593 11,700" 11,593" 13,658" 13,465' 12,428" 13,516 6 Payable in foreign currencies 2,524 3,781 3,888 3,614' 3,888" 4,080 3,860 3,829 3,893 7 Commercial liabilities 13,454 15,878 18,508 17,299" 18,508' 19,908 20,047 19,006 22,280 8 Trade payables 6,450 7,305 6,458 6,455" 6,458' 7,009 6,339 6,416 9,603 9 Advance receipts and other liabilities .. 7,004 8,573 12,050 10,844" 12,050" 12,899 13,708 12,590 12,676 10 Payable in dollars 12,140 14,142 16,790 15,665" 16,790" 18,197 18,834 17,997 21,335 11 Payable in foreign currencies 1,314 1,737 1,719 1,635 1,719" 1,711 1,213 1,009 944 By area or country Financial liabilities 12 Europe 7,917 8,320 10,268 10,732" 10,268" 12,731' 11,479" 10,362' 10,583 13 Belgium-Luxembourg 270 213 289 339 289 320 357 308 340 14 France 661 382 344 372 344' 249 278" 262 243 15 Germany 368 551 749 690 749 741 838 809' 734 16 Netherlands 542 866 879 9% 879 933 834 853 946 17 Switzerland 646 558 1,183 707" 1,183' 954 978" 839 578 18 United Kingdom 5,140 5,557 6,658 7,459" 6,658" 9,341' 8,014" 7,075' 7,481 19 Canada 399 360 663 431 663" 616 544 599 583 20 Latin America and Caribbean 1,944 1,189 1,239 1,057 1,239 677 1,216 1,315 1,226 21 Bahamas 614 318 184 238 184 189 165 186 157 22 .Bermuda 4 0 0 0 0 0 0 0 17 23 "Brazil 32 25 0 0 0 0 0 0 0 24 British West Indies 1,146 778 645 812 645 471 621 698 594 25 Mexico 22 13 1 2 1 15 17 4 6 26 Venezuela 0 0 0 0 0 0 0 0 0 27 Asia 1,805 2,451 3,306 3,088 3,306" 3,708" 3,985" 3,878 4,916 28 Japan 11,,339988 22,,004422 2,563 2,435 2,563 22,,995500 3,225" 3,130 4,064 29 Middle East oil-exporting countries . 88 88 3 4 3 11 12 2 2 30 Africa 1 4 1 3 1 5 3 4 2 1 1 0 1 0 3 2 2 0 31 Oil-exporting countries 32 All other4 67 100 2 3 2 2 97 97 100 Commercial liabilities 4,446 5,516 7,344 6,681' 7,344' 7,944 7,865 7,985 9,484 33 Europe 101 132 170 206 170 134 117 138 172 34 Belgium-Luxembourg 352 426 455 432' 455' 579 549 767 901 35 France 715 909 1,699 1,185 1,699 1,372 1,190 1,196 1,576 36 Germany 424 423 591 647 591 670 689 549 709 37 Netherlands 385 559 417 486 417 458 458 416 622 38 Switzerland 1,341 1,599 2,065 2,110 2,065" 2,585 2,709 2,729 2,827 39 United Kingdom 40 Canada 1,405 1,301 1,217 1,091" 1,217" 1,163 1,132 1,191 2,711 41 Latin America and Caribbean 924 864 1,118 997 1,118 1,267 1,669 1,092 1,130 42 Bahamas 32 18 49 19 49 35 34 27 41 43 Bermuda 156 168 286 222 286 426 388 305 308 44 Brazil 61 46 95 58 95 103 541 113 100 45 British West Indies 49 19 34 30 34 31 42 30 27 46 Mexico 217 189 179 177 179 198 182 191 245 47 Venezuela 216 162 177 204 177 179 185 140 154 48 Asia 5,080 6,565 6,923 6,637" 6,923" 7,329 6,970 7,018 7,085 49 Japan 2,042 2,578 3,097 2,763 3,097' 3,059 2,712 2,649 2,732 50 Middle East oil-exporting countries '5 1,679 1,964 1,386 1,298 1,386 1,526 1,431 1,406 1,347 51 Africa 619 574 578 477 578 706 768 643 838 52 Oil-exporting countries3 197 135 202 106 202 272 253 246 300 53 All other4 980 1,057 1,328 1,415 1,328 1,499 1,643 1,078 1,031 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 • June 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 11998866 11998877rr 11998888 Sept. Dec.' Mar.' June' Sept. Dec." 1 Total 36,265 30,964 33,816 38,691'' 33,816 31,964 34,348 32,474 32,428 2 Payable in dollars 33,867 28,502 31,481 36,179' 31,481 29,650 32,232 30,261 30,098 3 Payable in foreign currencies 2,399 2,462 2,335 2,512' 2,335 2,315 2,115 2,212 2,330 By type 4 Financial claims 26,273 20,363 21,882 27,597' 21,882 20,045 22,051 19,644 18,145 5 Deposits 19,916 14,894 15,887 19,367' 15,887 14,865 16,986 12,985 11,571 6 Payable in dollars 19,331 13,765 14,788 18,340' 14,788 13,950 16,065 12,120 10,645 7 Payable in foreign currencies 585 1,128 1,099 1,027' 1,099 914 921 865 926 8 Other financial claims 6,357 5,470 5,996 8,230' 5,9% 5,181 5,065 6,659 6,574 9 Payable in dollars 5,005 4,656 5,265 7,288' 5,265 4,287 4,349 5,795 5,777 10 Payable in foreign currencies 1,352 814 731 943' 731 893 716 864 798 11 Commercial claims 9,992 10,600 11,933 11,094' 11,933 11,919 12,297 12,830 14,283 12 Trade receivables 8,783 9,535 10,859 10,097' 10,859 10,658 10,866 11,401 12,726 13 Advance payments and other claims 1,209 1,065 1,074 998' 1,074 1,261 1,430 1,429 1,557 14 Payable in dollars 9,530 10,081 11,428 10,552' 11,428 11,412 11,818 12,347 13,676 15 Payable in foreign currencies 462 519 505 543 505 507 479 483 607 By area or country Financial claims 16 Europe 10,744 9,531 10,296 10,975' 10,296 9,245 8,845 8,005 7,588 17 Belgium-Luxembourg 41 7 18 57' 18 22 161 166 13 18 France 138 332 226 280' 226 233 198 209 181 19 Germany 116 102 138 123 138 180 218 147 194 20 Netherlands 151 350 348 363' 348 384 297 292 303 21 Switzerland 185 65 217 84 217 260 71 113 92 22 United Kingdom 9,855 8,467 8,997 9,742' 8,997 7,856 7,587 6,819 6,543 23 Canada 4,808 2,844 2,339 3,612 2,339 2,210 2,617 2,428 1,923 24 Latin America and Caribbean 9,291 7,012 8,142 11,862 8,142 7,498 9,361 8,309 7,482 25 Bahamas 2,628 1,994 1,857 4,069 1,857 2,172 1,891 1,707 1,513 26 Bermuda 6 7 19 188 19 25 125 33 7 27 Brazil 86 63 47 44 47 49 78 70 234 28 British West Indies 6,078 4,433 5,733 7,098 5,733 4,832 6,858 6,111 5,317 29 Mexico 174 172 151 133 151 117 114 105 94 30 Venezuela 21 19 21 27 21 25 31 36 20 31 Asia 1,317 879 830 1,027 830 951 1,109 801 829 il Japan 999 605 561 737 561 627 640 440 440 33 Middle East oil-exporting countries2 7 8 5 5 5 8 8 7 8 34 Africa 85 65 106 95 106 89 80 75 140 33 Oil-exporting countries3 28 7 10 9 10 8 8 8 12 36 All other4 28 33 170 26 170 52 37 27 183 Commercial claims 37 Europe 3,725 4,180 5,007 4,287' 5,007 4,934 5,162 5,442 6,806 38 Belgium-Luxembourg 133 178 177 172 177 202 201 219 201 39 France 431 650 660 517' 660 758 755 820 948 40 Germany 444 562 613 615 613 647 643 672 671 41 Netherlands 164 133 208 146 208 159 409 394 490 42 Switzerland 217 185 322 183 322 249 220 217 304 43 United Kingdom 999 1,073 1,307 1,191 1,307 1,284 1,356 1,470 2,212 44 Canada 934 936 972 978' 972 1,110 1,175 1,226 998 45 Latin America and Caribbean 1,857 1,930 2,234 2,104 2,234 2,110 2,089 2,120 2,164 46 Bahamas 28 19 36 12 36 34 13 10 57 47 Bermuda 193 170 229 161 229 234 238 270 323 48 Brazil 234 226 298 234 298 277 313 232 284 49 British West Indies 39 26 21 22 21 23 29 32 36 50 Mexico 412 368 459 463 459 481 431 502 507 51 Venezuela 237 283 226 266 226 211 228 187 148 52 Asia 2,755 2,915 2,958 3,027' 2,958 3,086 3,123 3,276 3,513 33 Japan 881 1,158 934 967 934 1,038 990 1,168 1,178 34 Middle East oil-exporting countries2 563 450 445 437 445 427 430 406 508 55 Africa 500 401 434 424' 434 386 402 388 419 36 Oil-exporting countries3 139 144 122 137 122 95 111 79 108 57 All other4 222 238 329 274 329 294 346 378 382 1. For a description of the changes in the Internationa] Statistics tabJes, 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 1990 1989 1990 Transactions, and area or country 1988 1989' Jan.- Aug. Sept. Oct/ Nov/ Dec/ Jan. Feb." Feb. U.S. corporate securities STOCKS 1 Foreign purchases 181,185 212,975 27,179 22,112 19,597' 22,350 13,830 15,410 13,741 13,438 2 Foreign sales 183,185 203,385 27,806 20,942 17,049' 20,988 14,947 16,868 14,127 13,679 3 Net purchases, or sales (—) -2,000 9,589 -627 1,171 2,548 1,363 -1,117 -1,458 -385 -241 4 Foreign countries -1,825 9,834 -597 1,154 2,600' 1,340 -1,116 -1,411 -354 -243 5 Europe -3,350 248 -336 -98 1,461 -107 -1,655 -281 -183 -154 6 France -281 -700 -312 -251 -5 -265 -296 -255 -155 -157 7 Germany 218 -866 43 -238 -65 -117 -119 -41 41 3 8 Netherlands -535 168 -56 -63 37 226 -34 -9 -18 -38 9 Switzerland -2,243 -3,471 -482 -333 63' -244 -509 -442 -240 -242 10 United Kingdom -954 3,728 -96 773 894 -34 -718 391 -275 178 11 Canada 1,087 -860 -93 14 -265 -140 -137 -459 -141 48 12 Latin America and Caribbean 1,238 3,096 -290 250 602 149 -24 -478 -111 -178 13 Middle East1 -2,474 3,530 66 554 NO 112 303 69 -27 93 14 Other Asia 1,365 3,414 201 423 631 1,138 342 -124 231 -30 15 Japan 1,922 3,348 62 424 611 975 310 -53 166 -104 16 Africa 188 131 -32 22 24 -6 19 9 2 -34 17 Other countries 121 274 -113 -11 38 193 37 -147 -125 12 18 Nonmonetary international and regional organizations -176 -245 -30 17 -52 23 -1 -48 --3311 1 BONDS2 19 Foreign purchases 86,381 120,466 19,701 10,944 8,603 10,930 11,133 13,702 9,463 10,237 20 Foreign sales 58,417 86,291 15,417 9,361 6,857 6,803 6,656 9,313 7,809 7,608 21 Net purchases, or sales (—) 27,964 34,175 4,283 1,583 1,746 4,127 4,476 4,388 1,654 2,629 22 Foreign countries 28,506 33,822 4,656 1,607 1,740 4,074 4,464 4,336 2,054 2,602 23 Europe 17,239 19,873 1,426 -138 1,400 1,955 2,712 1,429 1,135 292 24 France 143 372 126 -35 78 -41 -14 6 118 9 25 Germany 1,344 -239 -367 -121 -33 113 -117 -33 -114 -253 26 Netherlands 1,514 850 -28 96 28 30 143 41 -43 15 27 Switzerland 505 -165 215 -201 -27 74 54 -277 157 58 28 United Kingdom 13,084 18,488 1,654 -9 1,311 1,679 2,328 1,954 1,132 522 29 Canada 711 1,112 652 76 155 175 -86 204 178 474 30 Latin America and Caribbean 1,931 3,682 1,376 63 233 247 539 492 493 883 31 Middle East1 -178 -179 188 44 20 140 -57 242 87 100 3? Other Asia 8,900 9,060 948 1,574 -108 1,553 1,343 1,954 152 796 33 Japan 7,686 6,331 1,274 1,167 -179 1,263 1,045 1,728 170 1,103 34 Africa -8 56 38 5 -3 0 8 27 3 36 35 Other countries -89 218 28 -17 42 4 4 -11 5 22 36 Nonmonetary international and regional organizations -542 353 -373 -24 6 53 12 52 -399 27 Foreign securities 37 Stocks, net purchases, or sales (-)3 -1,959 -12,515 -266 -l,598r -277' -1,558 -525 -2,150 741 -1,007 38 Foreign purchases 75,356 108,917 23,212 9,598' 9,803' 11,399 10,304 9,857 12,888 10,324 39 Foreign sales 77,315 121,433 23,478 11,197' 10,08C 12,958 10,829 12,007 12,147 11,330 40 Bonds, net purchases, or sales (-) -7,434 -5,921 441 1,004' -1,848' -638 478 -270 568 -126 41 Foreign purchases 218,521 234,099 39,159 24,106 18,325 21,266 20,463 18,543 18,490 20,669 42 Foreign sales 225,955 240,020 38,717 23,102' 20,173' 21,904 19,986 18,812 17,922 20,795 43 Net purchases, or sales (—), of stocks and bonds .... -9,393 -18,436 175 -594' -2,125' -2,196 -47 -2,420 1,309 -1,133 44 Foreign countries -9,873 -18,423 -23 -780' -1,561' -1,860 -122 -2,428 1,201 -1,223 45 Europe -7,864 -17,613 185 -752' -1,730' -2,728 210 -904 1,401 -1,216 46 Canada -3,747 -4,063 -198 -250 -201 924 -325 -967 -56 -142 47 Latin America and Caribbean 1,384 426 195 313' -65' 187 -102 -269 33 162 48 979 2,952 -231 327 411' -232 -2 -512 82 -313 49 Africa -54 93 -5 -4 -3 12 13 56 -14 9 50 Other countries -571 -219 32 -415' 26 -22 84 168 -246 278 51 Nonmonetary international and regional organizations 480 -13 198 186 -564' -336 75 8 108 90 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. 3. As a result of the merger of a U.S. and U.K. company in July 1989, the government agencies and corporations. Also includes issues of new debt securi- former stockholders of the U.S. company received $5,453 million in shares of the new combined U.K. company. This transaction is not reflected in the data above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • June 1990 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions Millions of dollars 1990 1989 1990 CCoouunnttrryy oorr aarreeaa 11998888 11998899'' J F a e n b . . - Aug. Sept.' Oct/ Nov/ Dec/ Jan. Feb." Transactions, net purchases or sales (-) during period1 11 EEssttiimmaatteedd ttoottaall22 444888,,,888333222 555444,,,777222333 222,,,222777444 222111,,,999000666rrr 444,,,777000444 ---222,,,111333888 888,,,111999555 111,,,111444999 888222000 111,,,444555444 22 FFoorreeiiggnn ccoouunnttrriieess22 444888,,,111777000 555222,,,777444777 222,,,888888777 222222,,,333333777''' 555,,,777888666 ---333,,,333999222 888,,,333111111 ---333666222 111,,,000999222 111,,,777999555 33 EEuurrooppee22 111444,,,333111999 333666,,,000111666 333,,,444222888 111555,,,111777333''' 222,,,444999444 ---222,,,111333777 444,,,222555999 222,,,444333444 111,,,222333888 222,,,111999111 44 BBeellggiiuumm--LLuuxxeemmbboouurrgg 999222333 111,,,000555333 ---111999333 444111333 222111666 999000 222111000 ---888555 111444444 ---333333777 55 GGeerrmmaannyy ---555,,,222666888 777,,,999000777 111,,,444555666 222,,,444888888''' 555111000 111333777 111,,,666666666 111,,,777333555 ---222111666 111,,,666777222 66 NNeetthheerrllaannddss ---333555666 ---111,,,111333777 ---111,,,777333000 111,,,333000444 333000222 ---111,,,222000000 555444 ---333888666 ---333333000 ---111,,,444000000 77 SSwweeddeenn ---333222333 888888666 111999999 222333888''' ---555000 111444000 ---222333222 222999 ---777111 222777000 88 SSwwiittzzeerrllaanndd22 ---111,,,000777444 111,,,000999777 ---222888999 ---777444888 333777444 ---111888777 ---777888000 ---333555555 ---222888444 ---555 99 UUnniitteedd KKiinnggddoomm 999,,,666444000 222000,,,222555000 111,,,777777777 999,,,888666333 333333999 ---999111999 333,,,888222333 111,,,222888666 111555000 111,,,666222777 1100 OOtthheerr WWeesstteerrnn EEuurrooppee 111000,,,777888666 555,,,999888222 222,,,222000888 111,,,666111444 888000222 ---111999999 ---444888111 222000999 111,,,888444555 333666333 1111 EEaasstteerrnn EEuurrooppee ---111000 ---222111 000 000 000 000 000 000 000 000 1122 CCaannaaddaa 333,,,777666111 777000000 ---222,,,666888000 999999111''' ---333999888 111999111 333777555 111666444 ---555444333 ---222,,,111333777 1133 LLaattiinn AAmmeerriiccaa aanndd CCaarriibbbbeeaann 777111333 444777777 ---222444222 ---222999999''' 111333777 ---111,,,555666888 111,,,333777222 ---888888666 ---333333333 999111 1144 VVeenneezzuueellaa ---111000999 333111111 ---111555555 111222000 222999 777222 111666333 ---333666 ---111000777 ---444888 1155 OOtthheerr LLaattiinn AAmmeerriiccaa aanndd CCaarriibbbbeeaann 111,,,111333000 ---333111000 222777888 111999888''' ---333999222 ---999666 555777666 ---666111000 222666222 111666 1166 NNeetthheerrllaannddss AAnnttiilllleess ---333000888 444777555 ---333666555 ---666111777 555000000 ---111,,,555444555 666333444 ---222444000 ---444888888 111222333 222777,,,666000333 111444,,,000000000 222,,,777333666 777,,,111222111 222,,,888555777 ---111333111 111,,,666444666 ---222,,,666666999 444444999 222,,,222888777 18 Japan 222111,,,777555000 222,,,333888333 111,,,666999111 333,,,000000999 222,,,444000222 111,,,333333000 111,,,000888555 ---111,,,000333666 888333999 888555222 19 Africa ---111333 111111666 222222 ---444888 000 111333 999 333999 999 111333 20 All other 111,,,777888666 111,,,444333999 ---333777777 ---666000222 666999777 222444000 666444999 555555555 222777333 ---666555000 21 Nonmonetary international and regional organizations 666666111 111,,,999777666 ---666111333 ---444333111 ---111,,,000888222 111,,,222555444 ---111111666 111,,,555111111 ---222777222 ---333444111 22 International 111,,,111000666 111,,,444777333 ---666444666 ---555777666 ---777111999 111,,,111555888 ---111444333 111,,,333333555 ---333666000 ---222888666 23 Latin America regional ---333111 222333111 222777 777555 ---222222888 111666000 000 000 333888 ---111111 Memo 24 Foreign countries2 444888,,,111777000 555222,,,777444777 222,,,888888777 222222,,,333333777''' 555,,,777888666 ---333,,,333999222 888,,,333111111 ---333666222 111,,,000999222 111,,,777999555 25 Official institutions 222666,,,666222444 222777,,,000222888 ---111,,,000999777 999,,,999111888''' 777777333 ---999777999 111,,,666888666 111,,,333000555 333222888 ---111,,,444222555 26 Other foreign2 222111,,,555444666 222555,,,777222000 333,,,999888444 111222,,,444111999""" 555,,,000111333 ---222,,,444111333 666,,,666222666 ---111,,,666666777 777666444 333,,,222222000 Oil-exporting countries 27 Middle East3 111,,,999666333 888,,,111444888 111,,,888888666 333,,,666888111 666999555 ---222,,,111888333 ---222666 ---666444000 999111666 999777000 28 Africa4 111 ---111 ---111 000 000 000 ---111 000 ---111 000 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 Apr. 30, 1990 Rate on Apr. 30, 1990 Rate on Apr. 30, 1990 Country Country Country Percent e M ffe o c n t t i h ve Percent e M ffe o c n t t i h ve e M ffe o c n t t i h ve Austria.. 6.0 June 1989 France 9.5 Apr. 1990 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 Kingdom2 Canada.. 13.80 Apr. 1990 Japan 5.25 Mar. 1990 Venezuela Oct. 1985 Denmark 10.5 Oct. 1989 Netherlands 7.0 Oct. 1989 1. As of the end of February 1981, the rate is thai 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 1990 CCoouunnttrryy,, oorr ttyyppee 11998877 11998888 11998899 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Eurodollars 7.07 7.85 9.16 8.67 8.42 8.39 8.22 8.24 8.37 8.44 2 United Kingdom 9.65 10.28 13.87 15.03 15.07 15.07 15.13 15.07 15.23 15.17 3 Canada 8.38 9.63 12.20 12.29 12.35 12.34 12.24 12.96 13.35 13.59 4 Germany 3.97 4.28 7.04 8.08 8.22 8.06 8.22 8.27 8.42 8.20 5 Switzerland 3.67 2.94 6.83 7.63 7.68 8.14 9.35 9.31 8.88 9.01 6 Netherlands 5.24 4.72 7.28 8.08 8.40 8.47 8.82 8.93 8.70 8.46 7 France 8.14 7.80 9.27 9.89 10.41 10.71 11.19 10.93 10.56 9.92 8 Italy 11.15 11.04 12.44 12.63 12.67 12.83 12.88 13.22 13.03 12.11 9 Belgium 7.01 6.69 8.65 9.51 9.81 10.03 10.48 10.54 10.39 10.19 10 Japan 3.87 3.96 4.73 5.25 5.71 5.80 6.02 6.22 6.33 6.62 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 • June 1990 3.28 FOREIGN EXCHANGE RATES1 Currency units per dollar 1989 1990 CCoouunnttrryy//ccuurrrreennccyy 11998877 11998888 11998899 Nov. Dec. Jan. Feb. Mar. Apr. 1 Australia/dollar2 70.137 78.409 79.186 78.295 78.586 78.111 75.932 75.562 76.366 2 Austria/schilling 12.649 12.357 13.236 12.860 12.241 11.904 11.803 11.514 11.862 3 Belgium/franc 37.358 36.785 39.409 38.403 36.544 35.451 34.998 35.398 34.868 4 Canada/dollar 1.3259 1.2306 1.1842 1.1697 1.1613 1.1720 1.1965 1.1800 1.1641 5 China, P.R./yuan 3.7314 3.7314 3.7673 3.7314 4.1825 4.7339 4.7339 4.7339 4.7339 6 Denmark/krone 6.8478 6.7412 7.3210 7.1138 6.7610 6.5620 6.4729 6.5349 6.4305 7 Finland/markka 4.4037 4.1933 4.2963 4.2619 4.1231 4.0080 3.9642 4.0276 3.9923 8 France/franc 6.0122 5.9595 6.3802 6.2225 5.9391 5.7568 5.6897 5.7555 5.6638 9 Germany/deutsche mark 1.7981 1.7570 1.8808 1.8300 1.7378 1.6914 1.6758 1.7053 1.6863 10 Greece/drachma 135.47 142.00 162.60 164.97 160.32 157.68 158.04 162.44 163.77 11 Hong Kong/dollar 7.7986 7.8072 7.8008 7.8140 7.8102 7.8116 7.8103 7.8129 7.7966 12 India/rupee 12.943 13.900 16.213 16.925 16.932 16.963 16.990 17.116 17.294 1J Ireland/punt2 148.79 152.49 141.80 144.73 151.65 156.31 158.28 156.26 158.97 14 Italy/lira 1,297.03 1,302.39 1,372.28 1,343.83 1,291.93 1,261.87 1,243.68 1,257.67 1,238.38 15 Japan/yen 144.60 128.17 138.07 143.53 143.69 144.98 145.69 153.31 158.46 16 Malaysia/ringgit 2.5186 2.6190 2.7079 2.7028 2.7032 2.7041 2.7137 2.7170 2.7264 17 Netherlands/guilder 2.0264 1.9778 2.1219 2.0652 1.9619 1.9073 1.8892 1.9204 1.8984 18 New Zealand/dollar2 59.328 65.560 59.354 56.301 59.458 60.220 59.156 58.471 57.883 19 Norway/krone 6.7409 6.5243 6.9131 6.9010 6.7021 6.5462 6.4760 6.5972 6.5457 20 Portugal/escudo 141.20 144.27 157.53 157.65 152.34 149.17 147.71 150.59 149.29 21 Singapore/dollar 2.1059 2.0133 1.9511 1.9588 1.9183 1.8873 1.8641 1.8777 1.8783 22 South Africa/rand 2.0385 2.2773 2.6215 2.6295 2.5679 2.5532 2.5449 2.6158 2.6552 23 South Korea/won 825.94 734.52 674.29 674.94 677.66 686.18 692.47 700.50 708.76 24 Spain/peseta 123.54 116.53 118.44 116.58 112.24 109.71 108.27 109.37 107.00 23 Sri Lanka/rupee 29.472 31.820 35.947 40.017 40.018 40.018 40.018 40.018 40.018 26 Sweden/krona 6.3469 6.1370 6.4559 6.4306 6.2920 6.1776 6.1250 6.1683 6.1160 27 Switzerland/franc 1.4918 1.4643 1.6369 1.6189 1.5686 1.5175 1.4879 1.5133 1.4866 28 Taiwan/dollar 31.753 28.636 26.407 26.029 26.139 26.081 26.118 26.361 26.369 29 Thailand/baht 25.775 25.312 25.725 25.877 25.778 25.745 25.733 25.926 26.024 30 United Kingdom/pound2 163.98 178.13 163.82 157.26 159.65 165.12 169.61 162.45 163.72 MEMO 31 United States/dollar3 96.94 92.72 98.60 97.99 94.88 93.00 92.25 94.11 93.51 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 June 1990 A88 SPECIAL TABLES—Published Irregularly, with Latest BULLETIN Reference Title and Date Issue Page Assets and liabilities of commercial banks March 31, 1989 December 1989 A72 June 30, 1989 January 1990 A72 September 30, 1989 February 1990 A72 December 31, 1989 June 1990 A72 Terms of lending at commercial banks February 1989 June 1989 A84 May 1989 March 1990 A73 August 1989 November 1989 A73 November 1989 March 1990 A79 Assets and liabilities of U.S. branches and agencies of foreign banks March 31, 1989 August 1989 A84 June 30, 1989 November 1989 A78 September 30, 1989 March 1990 A84 December 31, 1989 June 1990 A78 Pro forma balance sheet and income statements for priced service operations March 31, 1988 August 1988 A70 March 31, 1989 September 1989 A72 June 30, 1989 February 1990 A78 September 30, 1989 March 1990 A88 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • June 1990 4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1,2 Consolidated Report of Condition, December 31, 1989 Millions of dollars Banks with domestic Banks with foreign offices offices only IItteemm Total Total Foreign Domestic Over 100 Under 100 1 Total assets6 3,283,872 1,885,392 421,212 1,530,337 1,004,267 394,213 2 Cash and balances due from depository institutions 347,640 246,596 112,605 133,991 71,418 29,626 3 Cash items in process of collection, unposted debits, and currency and coin 4 96,672 1,503 95,170 34,851 4 4 Cash items in process of collection and unposted debits T n.a. n.a. 79,454 25,035 I 5 Currency and coin n.a. n.a. 15,716 9,816 i 6 Balances due from depository institutions in the United States 1 35,257 21,505 13,752 21,168 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. 92,845 89,425 3,419 2,931 I 8 Balances due from Federal Reserve Banks 1 21,821 172 21,650 12,469 MEMO 1 9 Noni ( n in te c r lu es d t e -b d e i a n r i b n a g l a b n a c l e a s n c d e u s e d f u r e o m fr o d m ep o co si m to m ry e r i c n ia st l it b u a t n io k n s s i i n n t t h h e e U U n n i i t t e e d d S S ta t t a e t s e s).... •1 n.a. n.a. 8,666 14,394 10 t , 431 10 Total securities, loans and lease financing receivables, net 2,698,257 1,461,129 n.a. n.a. 889,139 347,989 11 Total securities, book value 555,934 240,314 32,700 207,615 203,499 112,121 12 U.S. Treasury securities and U.S. government agency and corporation obligations 362,532 141,335 2,631 138,704 136,478 8844,,771199 13 U.S. Treasury securities n.a. 48,127 838 47,289 61,580 n.a. 14 U.S. government agency and corporation obligations n.a. 93,208 1,793 91,415 74,898 n.a. 15 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 124,652 71,258 1,613 69,645 3366,,005588 1177,,333366 16 All other n.a. 21,950 180 21,770 41,999 n.a. 17 Securities issued by states and political subdivisions in the United States 93,681 37,933 1,765 36,167 37,561 18,187 18 Taxable 2,741 833 129 704 810 1,098 19 Tax-exempt 90,939 37,099 1,636 35,463 36,751 17,089 20 Other domestic debt securities n.a. 29,499 1,833 27,666 20,951 n.a. 21 All holdings of private certificates of participation in pools of residential mortgages 4,020 2,062 0 2,062 11,,446699 448899 77 All other domestic debt securities 55,000 27,437 1,833 25,604 20,209 7,354 23 Foreign debt securities n.a. 27,408 25,624 1,784 632 n.a. 24 9,354 4,139 846 3,293 3,844 1,372 75 Marketable 4,931 1,397 250 1,147 2,514 1,021 76 Investments in mutual funds 2,168 418 17 401 816 934 77 Other 3,242 1,164 233 931 1,900 178 78 Less: Net unrealized loss 428 186 0 186 151 91 29 Other equity securities 4,518 2,742 596 2,146 1,425 351 30 Federal funds sold and securities purchased under agreements to resell 146,230 67,043 613 66,431 50,794 28,393 31 Federal funds sold 126,299 52,074 n.a. n.a. 46,201 28,025 32 Securities purchased under agreements to resell 19,931 14,970 n.a. n.a. 4,593 368 33 Total loans and lease financing receivables, gross 2,029,125 1,199,426 1,333,276 989,602 616,693 213,006 34 LESS: Unearned income on loans 14,679 6,396 1,571 4,825 6,141 2,142 35 Total loans and leases (net of unearned income) 2,049,327 1,193,030 208,254 984,777 645,432 210,864 36 LESS: Allowance for loan and lease losses 52,949 38,975 n.a. n.a. 10,586 3,388 37 LESS: Allocated transfer risk reserves 285 285 n.a. n.a. 0 0 38 EQUALS: Total loans and leases, net 1,996,093 1,153,771 n.a. n.a. 634,846 207,476 Total loans, gross, by category 39 Loans secured by real estate 749,788 381,257 2222,,779900 358,467 226655,,118811 110033,,335500 4 4 0 1 Construction and land development 4T 4T 4T 89 2 , , 1 2 5 7 2 0 3 4 8 , , 8 3 0 3 8 3 9 8 , , 5 0 6 9 8 2 42 1-4 family residential properties 1 1 1 157,916 130,691 56,895 43 Revolving, open-end loans, extended under lines of credit n.a. n.a. n.a. 27,434 20,321 3,047 44 All other loans 1 1 1 130,483 114,734 53,848 4 4 5 6 M No u n lt f i a f r a m m il n y o n (5 r e o s r id m en o t r ia e l ) p re r s o i p d e e r n t t i i e a s l properties •1 •1 T 1 9 1 8 0 , , 2 8 5 7 4 5 89 7 , , 5 1 8 0 9 0 26 1 , , 8 9 5 4 0 5 47 Loans to depository institutions 57,049 50,592 21,577 29,015 5,771 685 48 To commercial banks in the United States n.a. 23,714 1,381 22,333 5,102 n.a. 49 To other depository institutions in the United States n.a. 2,348 266 2,083 606 n.a. 50 To banks in foreign countries n.a. 24,530 19,930 4,599 77 n.a. 51 Loans to finance agricultural production and other loans to farmers 31,028 5,566 246 5,320 7,299 18,163 57. Commercial and industrial loans 608,548 431,059 101,856 329,203 135,153 42,335 53 To U.S. addressees (domicile) n.a. 349,1% 22,200 326,9% 142,411 n.a. 54 To non-U.S. addressees (domicile) n.a. 81,863 79,656 2,207 334 n.a. 55 4,293 1,159 734 425 1,657 1,477 56 U.S. banks n.a. 334 21 313 n.a. n.a. 57 n.a. 825 713 112 n.a. n.a. 58 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 382,083 166,111 14,486 151,624 173,314 42,658 59 Credit cards and related plans 130,962 49,548 n.a. n.a. 78,090 3,324 60 Other (includes single payment and installment) 266,833 116,563 n.a. n.a. 110,936 39,333 61 Obligations (other than securities) of states and political subdivisions in the U.S. (includes nonrated industrial development obligations) 39,463 24,252 277 23,975 13,458 11,,775533 67 1,339 815 97 718 453 71 63 38,719 23,436 180 23,256 13,600 1,682 64 120,179 108,260 44,042 64,219 9,946 1,972 65 Loans to foreign governments and official institutions n.a. 28,277 26,803 1,475 178 n.a. 66 Other loans n.a. 79,983 17,239 62,744 9,768 n.a. 67 Loans for purchasing and carrying securities n.a. n.a. n.a. 16,504 1,437 n.a. 68 All other loans n.a. n.a. n.a. 46,240 8,913 n.a. 69 Lease financing receivables 36,859 31,169 3,816 27,353 5,077 613 70 Assets held in trading accounts 41,990 40,625 18,641 21,984 1,162 202 7 7 2 1 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 et s (including capitalized leases) 4 1 7 3 , , 9 6 3 7 6 5 2 7 5 , , 0 82 3 7 4 T4 n n . . a a . . 1 4 5 , , 2 4 1 2 2 1 6 2 , , 6 4 8 2 8 8 73 Investments in unconsolidated subsidiaries and associated companies 3,232 2,409 1 n.a. 780 43 74 Customers' liability on acceptances outstanding 27,105 26,743 n.a. n.a. 341 22 7 7 5 6 I N n e t t a n d g u i e b l f e r o a m ss e o t w s n foreign offices, Edge and agreement subsidiaries, and IBFs n. 6 a , . 0 11 n. 3 a , . 5 98 1I n 4 . 7 a , . 0 70 n. 2 a , . 1 72 n.a 2 . 4 0 Digitized for FRA7S7E ORth er assets 98,027 71,432 n.a. 19,621 6,975 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20—Continued Banks with domestic Banks with foreign offices offices only Foreign Domestic Over 100 Under 100 78 Total liabilities, limited-life preferred stock, and equity capital 3,283,872 1,885,392 1,004,267 79 Total liabilities7 3,079,509 1,787,189 421,044 1,432,302 933,198 80 Limited-life preferred stock 86 0 n.a. n.a. 82 81 Total deposits 2,535,103 1,371,864 311,755 1,060,108 813,247 82 Individuals, partnerships, and corporations 182,104 966,179 716,609 83 U.S. government 3,233 1,916 84 States and political subdivisions in the United States 39,556 42,830 85 Commercial banks in the United States n.a. n.a. 25,325 8,454 86 Other depository institutions in the United States \ \ 5,501 2,184 87 Banks in foreign countries 8,299 125 88 Foreign governments and official institutions 23,728 22,582 1,146 57 89 Certified and official checks 20,704 11,625 756 10,869 6,420 90 Allother8 n.a. n.a. 106,314 n.a. 91 Total transaction accounts 344,575 225,790 92 Individuals, partnerships, and corporations 289,147 197,548 93 U.S. government 2,369 1,697 94 States and political subdivisions in the United States 9,983 11,939 95 Commercial banks in the United States 20,214 6,806 96 Other depository institutions in the United States 3,576 1,237 97 Banks in foreign countries 7,645 107 98 Foreign governments and official institutions 773 35 99 Certified and official checks 10,869 6,420 100 All other n.a. n.a. 101 Demand deposits (included in total transaction accounts) 264,315 142,757 102 Individuals, partnerships, and corporations 211,467 120,827 103 U.S. government 2,343 1,677 104 States and political subdivisions in the United States 7,431 5,663 105 Commercial banks in the United States 20,214 6,805 106 Other depository institutions in the United States 3,576 1,222 107 Banks in foreign countries 7,644 107 108 Foreign governments and official institutions 771 35 109 Certified and official checks 10,869 6,420 110 Allother n.a. n.a. 111 Total nontransaction accounts 715,534 587,457 112 Individuals, partnerships, and corporations 677,032 550,169 113 U.S. government 864 287 114 States and political subdivisions in the United States 29,573 32,934 115 Commercial banks in the United States 5,112 2,302 116 U.S. branches and agencies of foreign banks 538 180 117 Other commercial banks in the United States 4,574 2,570 118 Other depository institutions in the United States 1,925 1,017 119 Banks in foreign countries 655 29 120 Foreign branches of other U.S. banks 3 27 121 Other banks in foreign countries 651 11 122 Foreign governments and official institutions 373 262 123 All other n.a. n.a. 124 Federal funds purchased and securities sold under agreements to repurchase.. 274,606 209,669 989 208,680 62,041 125 Federal funds purchased 185,021 150,624 n.a. n.a. 33,272 126 Securities sold under agreements to repurchase 89,579 59,046 n.a. n.a. 28,769 127 Demand notes issued to the U.S. Treasury n.a. n.a. n.a. 16,371 4,194 128 Other borrowed money 119,622 83,381 33,523 49,859 35,077 129 Banks liability on acceptances executed and outstanding 27,280 26,917 5,300 21,617 341 130 Notes and debentures subordinated to deposits 20,024 16,982 n.a. n.a. 2,894 131 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs... n.a. n.a. n.a. 19,087 n.a. 132 All other liabilities 81,940 62,004 n.a. n.a. 15,404 133 Total equity capital9 204,278 98,203 n.a. n.a. 70,987 MEMO 134 Holdings of commercial paper included in total loans, gross 747 120 1,793 135 Total individual retirement accounts (IRA) and Keogh plan accounts 48,695 44,217 136 Total brokered deposits 43,533 19,534 137 Total brokered retail deposits 12,737 10,443 138 Issued in denominations of $100,000 or less 4,507 3,953 139 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 8,231 8,016 Savings deposits 140 Money market deposit accounts (MMDAs) 189,532 124,117 141 Other savings deposits (excluding MMDAs) 82,485 73,679 142 Total time deposits of less than $100,000 220,103 262 143 Time certificates of deposit of $100,000 or more 191,284 122,875 144 Open-account time deposits of $100,000 or more 32,129 4,585 145 All NOW accounts (including Super NOW) 78,814 80,918 146 Total time and savings deposits 795,794 670,490 Quarterly averages 147 Total loans 951,976 630,746 148 Obligations (other than securities) of states and political subdivisions in the United States 24,784 14,107 149 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 76,790 79,355 Nontransaction accounts in domestic offices 150 Money market deposit accounts (MMDAs) 184,318 123,104 151 Other savings deposits 80,996 73,563 152 Time certificates of deposit of $100,000 or more 193,208 122,224 153 All other time deposits 247,860 264,623 154 Number of banks 12,688 245 2,509 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 • June 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, December 31, 1989 Millions of dollars Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 1 Total assets6 2,534,604 2,021,102 1,628,372 392,730 513,502 2 Cash and balances due from depository institutions 205,409 170,203 137,375 32,827 35,206 3 Cash items in process of collection and unposted debits 104,489 93,795 76,470 17,325 10,694 4 Currency and coin 25,532 21,250 17,723 3,527 4,282 5 Balances due from depository institutions in the United States 34,920 23,016 18,555 4,461 11,904 6 Balances due from banks in foreign countries and foreign central banks 6,350 4,663 3,774 889 1,687 7 Balances due from Federal Reserve Banks 34,119 27,480 20,854 6,626 6,639 8 Total securities, loans and lease financing receivables, (net of unearned income) 2,158,548 1,703,468 1,388,450 315,019 455,080 9 Total securities, book value 411,114 310,021 242,007 68,014 101,093 10 U.S. Treasury securities 108,869 77,209 61,256 15,953 31,660 11 U.S. government agency and corporation obligations 166,313 132,943 105,913 27,030 33,369 12 All holdings of U.S. government-issued or guaranteed certificates of participation in pools of residential mortgages 105,703 90,881 73,813 17,068 14,821 13 All other 63,769 44,207 34,242 9,965 19,562 14 Securities issued by states and political subdivisions in the United States 73,728 57,329 43,632 13,696 16,400 15 Taxable 1,514 1,101 923 178 413 16 Tax-exempt 72,214 56,227 42,709 13,518 15,987 17 Other domestic debt securities 48,617 34,646 25,071 9,575 13,972 18 All holdings of private certificates of participation in pools of residential mortgages 3,531 2,656 2,209 447 875 19 All other 45,814 32,512 23,383 9,129 13,301 20 Foreign debt securities 2,417 1,838 801 1,037 579 21 Equity securities 7,137 3,324 2,607 717 3,812 22 Marketable 3,661 699 553 145 2,962 23 Investments in mutual funds 1,218 461 415 46 757 24 Other 2,831 331 222 108 2,500 25 Less: Net unrealized loss 337 59 50 9 278 26 Other equity securities 3,571 2,656 2,083 573 914 27 Federal funds sold and securities purchased under agreements to resell10 117,225 94,432 75,063 19,370 22,793 28 Federal funds sold 46,241 29,500 25,477 4,022 16,742 29 Securities purchased under agreements to resell 4,614 3,022 2,378 644 1,593 30 Total loans and lease financing receivables, gross 1,606,295 1,281,065 1,052,421 228,645 325,229 31 LESS: Unearned income on loans 10,966 8,314 6,752 1,563 2,652 32 Total loans and leases (net of unearned income) 1,630,209 1,299,015 1,071,380 227,635 331,195 Total loans, gross, by category 33 Loans secured by real estate 662233,,664499 478,284 408,983 69,300 145,365 34 Construction and land development 127,484 102,871 86,370 16,501 24,614 35 Farmland 7,079 4,728 4,156 572 2,351 36 14 family residential properties 288,608 217,547 185,764 31,783 71,061 37 Revolving, open-end and extended under lines of credit 47,754 37,258 31,542 5,717 10,496 38 All other loans 245,217 182,823 156,708 26,115 62,393 39 Multifamily (5 or more) residential properties 17,975 14,226 12,523 1,703 3,749 40 Nonfarm nonresidential properties 187,844 141,902 123,085 18,817 45,942 41 Loans to commercial banks in the United States 27,435 23,451 18,612 4,840 3,984 42 Loans to other depository institutions in the United States 2,689 2,465 2,231 234 224 43 Loans to banks in foreign countries 4,677 4,495 1,926 2,570 181 44 Loans to finance agricultural production and other loans to farmers 12,620 9,740 8,734 1,005 2,880 45 Commercial and industrial loans 464,356 381,732 304,292 77,440 82,624 46 To U.S. addressees (domicile) 469,407 384,662 307,714 76,948 84,745 47 To non-U.S. addressees (domicile) 2,542 2,238 1,611 628 303 48 Acceptances of other banks" 2,082 1,264 1,121 142 818 49 Of U.S. banks 778 518 464 54 260 50 Of foreign banks 276 222 190 32 54 51 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 324,939 252,706 213,247 39,459 72,233 52 Credit cards and related plans 78,092 57,236 54,616 2,620 20,857 53 Other (includes single payment and installment) 110,965 68,198 57,058 11,140 42,768 54 Loans to foreign governments and official institutions 1,653 1,591 1,086 505 62 55 Obligations (other than securities) of states and political subdivisions in the United States 37,433 31,548 23,376 8,172 5,884 56 Taxable 1,171 915 678 237 256 57 Tax-exempt 36,856 31,095 23,125 7,970 5,761 58 Other loans 72,512 65,875 45,843 20,032 6,636 59 Loans for purchasing and carrying securities 17,941 16,861 10,405 6,455 1,080 60 All other loans 55,153 49,516 35,938 13,578 5,637 61 Lease financing receivables 32,431 28,070 23,125 4,945 4,361 62 Customers' liability on acceptances outstanding 21,296 20,125 15,510 4,614 1,171 63 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 47,070 41,977 21,906 20,071 5,093 64 Remaining assets 149,351 127,306 87,037 40,270 22,045 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 65 Total liabilities and equity capital 2,534,604 2,021,102 1,628,372 392,730 513,502 66 Total liabilities4 2,365,500 1,890,854 1,524,915 365,938 474,646 67 Total deposits 1,873,356 1,465,491 1,194,418 271,074 407,864 68 Individuals, partnerships, and corporations 1,682,788 1,317,035 1,074,118 242,917 365,754 69 U.S. government 5,149 4,300 3,763 537 850 70 States and political subdivisions in the United States 82,386 61,773 51,180 10,593 20,613 71 Commercial banks in the United States 33,779 30,655 23,602 7,053 3,124 72 Other depository institutions in the United States 7,685 6,279 5,338 941 1,407 73 Banks in foreign countries 8,424 7,813 4,282 3,531 611 74 Foreign governments and official institutions 1,202 1,092 583 508 111 75 Certified and official checks 17,289 13,737 9,304 4,434 3,551 76 Total transaction accounts 570,365 461,290 368,390 92,899 109,075 77 Individuals, partnerships, and corporations 486,695 389,330 314,440 74,890 97,365 78 U.S. government 4,066 3,349 2,853 496 717 79 States and political subdivisions in the United States 21,922 17,459 14,350 3,109 4,463 80 Commercial banks in the United States 27,020 25,146 19,835 5,311 1,874 81 Other depository institutions in the United States 4,813 4,028 3,184 844 785 82 Banks in foreign countries 7,752 7,470 4,070 3,400 282 83 Foreign governments and official institutions 808 770 355 415 38 84 Certified and official checks 17,289 13,737 9,304 4,434 3,551 85 Demand deposits (included in total transaction accounts) 407,072 335,071 261,911 73,160 72,001 86 Individuals, partnerships, and corporations 332,294 269,845 213,622 56,223 62,449 87 U.S. government 4,021 3,309 2,814 494 712 88 States and political subdivisions in the United States 13,094 10,776 8,736 2,040 2,317 89 Commercial banks in the United States 27,019 25,146 19,835 5,311 1,873 90 Other depository institutions in the United States 4,798 4,019 3,176 843 779 91 Banks in foreign countries 7,751 7,469 4,070 3,399 282 92 Foreign governments and official institutions 806 770 355 415 36 93 Certified and official checks 17,289 13,737 9,304 4,434 3,551 94 Total nontransaction accounts 1,302,991 1,004,202 826,027 178,175 298,789 95 Individuals, partnerships, and corporations 1,227,201 947,866 779,315 168,551 279,335 96 U.S. government 1,151 1,006 965 41 145 97 States and political subdivisions in the United States 62,507 45,794 38,274 7,520 16,713 98 Commercial banks in the United States 7,413 5,882 4,140 1,742 1,532 99 U.S. branches and agencies of foreign banks 717 387 248 139 330 100 Other commercial banks in the United States 7,144 5,923 4,320 1,602 1,221 101 Other depository institutions in the United States 2,942 2,312 2,214 97 631 102 Banks in foreign countries 683 353 222 130 331 103 Foreign branches of other U.S. banks 30 24 21 3 7 104 Other banks in foreign countries 663 329 201 127 334 105 Foreign governments and official institutions 635 561 468 93 73 106 Federal funds purchased and securities sold under agreements to repurchase12 270,721 236,771 183,418 53,353 33,950 107 Federal funds purchased 33,304 26,633 22,856 3,777 6,670 108 Securities sold under agreements to repurchase 28,777 14,505 12,037 2,468 14,272 109 Demand notes issued to the U.S. Treasury 20,565 18,548 14,379 4,169 2,017 110 Other borrowed money 84,936 67,874 57,776 10,098 17,062 111 Banks liability on acceptances executed and outstanding 21,958 20,786 16,131 4,655 1,171 112 Notes and debentures subordinated to deposits 2,894 1,975 1,864 111 919 in Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 19,087 16,113 14,535 1,578 2,975 114 91,071 79,408 56,930 22,478 11,662 115 Total equity capital9 169,105 130,248 103,457 26,792 38,856 MEMO 116 Holdings of commercial paper included in total loans, gross 1,913 907 818 89 11,,000066 117 Total individual retirement accounts (IRA) and Keogh plan accounts 92,913 72,679 60,266 12,413 20,234 118 Total brokered deposits 63,067 44,568 38,012 6,556 18,499 119 Total brokered retail deposits 23,180 14,140 11,278 2,861 9,041 120 Issued in denominations of $100,000 or less 8,460 5,095 4,623 472 3,365 121 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 16,247 10,533 8,142 2,391 55,,771144 Savings deposits 122 Money market deposit accounts (MMDAs) 313,649 251,916 220088,,338877 4433,,552299 6611,,773344 17.3 156,164 120,747 90,363 30,384 35,418 17.4 Total time deposits of less than $100,000 482,304 362,028 305,205 56,824 120,275 17.5 Time certificates of deposit of $100,000 or more 314,159 237,823 201,793 36,030 76,337 17.6 Open-account time deposits of $100,000 or more 36,714 31,688 20,280 11,409 5,026 127 All NOW accounts (including Super NOW accounts) 159,732 123,741 104,173 19,568 35,991 128 Total time and savings deposits 1,466,284 1,130,420 932,506 197,914 335,864 Quarterly averages pq 11,,558822,,772222 11,,225599,,550011 11,,003366,,666633 222222,,883388 332233,,222200 130 Obligations (other than securities) of states and political subdivisions in the United States 38,891 32,828 24,143 8,685 6,063 131 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized 156,146 120,841 100,887 19,954 35,305 Nontransaction accounts 132 Money market deposit accounts (MMDAs) 307,423 246,173 202,765 43,409 61,249 133 154,559 119,206 89,848 29,358 35,352 134 Time certificates of deposits of $100,000 or more ' 315,433 239,544 203,542 36,002 75,889 135 512,484 388,180 322,311 65,869 124,304 136 Number of banks 2,754 1,552 1,303 249 1,202 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 • June 1990 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2-6 Consolidated Report of Condition, December 31, 1989 Millions of dollars Members NNoonn-- IItteemm Total mmeemmbbeerrss Total National State 1 Total assets6 2,928,817 2,179,808 1,755,500 424,308 749,009 2 Cash and balances due from depository institutions 235,035 182,388 147,310 35,078 52,647 29,230 22,754 18,937 3,818 6,476 4 Noninterest-bearing balances due from commercial banks 33,491 19,236 15,445 3,792 14,255 5 Other 172,313 140,398 112,929 27,469 31,916 6 Total securities, loans, and lease financing receivables (net of unearned income) 2,509,925 1,844,635 1,501,273 343,362 665,290 7 Total securities, book value 523,234 353,899 277,826 76,073 169,336 8 U.S. Treasury securities and U.S. government agency and corporation obligations 359,901 243,288 194,224 49,063 116,613 9 Securities issued by states and political subdivisions in the United States 91,915 64,182 49,173 15,009 27,733 10 Taxable 2,612 1,501 1,243 258 1,111 11 Tax-exempt 89,303 62,681 47,930 14,751 26,622 12 Other debt securities 58,795 39,668 28,507 11,161 19,127 13 All holdings of private certificates of participation in pools of residential mortgages 4,020 2,891 2,354 537 1,129 14 All other 53,168 35,536 25,947 9,589 17,632 15 Equity securities 8,508 3,954 3,120 834 4,554 16 Marketable 4,681 1,075 872 203 3,607 17 Investments in mutual funds 2,152 834 730 103 1,318 18 Other ... 3,009 366 252 114 2,643 19 Less: Net unrealized loss 428 92 77 14 336 20 Other equity securities 3,922 2,910 2,278 632 1,012 21 Federal funds sold and securities purchased under agreements to resell1" 145,618 107,098 85,301 21,797 38,519 22 Federal funds sold 74,266 41,997 35,610 6,387 32,269 23 Securities purchased under agreements to resell 4,982 3,190 2,484 707 1,792 24 Total loans and lease financing receivables, gross 1,819,301 1,366,609 1,119,879 246,729 452,692 25 LESS: Unearned income on loans 13,108 9,234 7,444 1,790 3,875 26 Total loans and leases (net of unearned income) 1,841,073 1,383,639 1,138,146 245,493 457,434 Total loans, gross, by category 27 Loans secured by real estate 726,998 519,337 441,292 7788,,004444 220077,,666622 28 Construction and land development 135,577 106,246 88,987 17,260 29,331 16,647 7,932 6,746 1,186 8,714 30 1-4 family residential properties 345,503 240,385 203,581 36,804 105,118 31 Revolving, open-end loans, and extended under lines of credit 50,801 38,605 32,572 6,033 12,196 32 All other loans 299,064 204,315 173,495 30,820 94,750 33 Multifamily (5 or more) residential properties 19,920 14,956 13,110 1,845 4,964 34 Nonfarm nonresidential properties 214,693 152,807 131,783 21,025 61,886 35 Loans to depository institutions 35,471 30,752 22,989 7,762 4,720 36 Loans to finance agricultural production and other loans to farmers 30,782 16,190 13,941 2,249 14,593 37 Commercial and industrial loans 506,692 399,662 318,167 81,495 107,030 38 Acceptances of other banks 3,559 1,859 1,643 216 1,699 39 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 367,597 270,210 227,272 4422,,993388 9977,,338877 40 Credit cards and related plans 81,417 58,770 56,039 2,732 22,647 41 Other (includes single payment installment) 150,299 84,167 69,660 14,506 66,132 42 Obligations (other than securities) of states and political subdivisions in the United States 39,186 32,196 23,913 8,283 6,990 1,242 942 701 241 301 38,539 31,716 23,638 8,078 6,823 76,137 68,270 47,527 20,744 7,867 46 Lease financing receivables 33,043 28,281 23,282 4,999 4,762 47 Customers' liability on acceptances outstanding 21,317 20,140 15,524 4,617 1,177 48 Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs 47,070 41,977 21,906 20,071 5,093 49 Remaining assets 162,540 132,644 91,393 41,251 29,896 50 Total liabilities and equity capital 2,928,817 2,179,808 1,755,500 424,308 749,009 51 Total liabilities4 2,724,622 2,035,816 1,641,207 394,609 688,805 52 Total deposits 2,223,348 1,606,537 1,307,565 298,972 616,811 53 Individuals, partnerships, and corporations 2,003,041 1,446,247 1,177,672 268,574 556,794 54 U.S. government 5,842 4,568 3,981 587 1,275 55 States and political subdivisions in the United States 106,009 70,675 58,493 12,182 35,334 56 Commercial banks in the United States 35,485 31,698 24,342 7,356 3,787 57 Other depository institutions in the United States 8,687 6,678 5,668 1,009 2,009 58 Certified and official checks 19,949 14,927 10,267 4,661 5,021 59 All other 9,682 8,936 4,894 4,042 746 60 Total transaction accounts 664,072 500,272 400,074 100,198 163,800 61 Individuals, partnerships, and corporations 569,572 423,666 342,407 81,259 145,905 4,649 3,575 3,035 540 1,074 63 States and political subdivisions in the United States 28,407 19,887 16,366 3,521 8,521 64 Commercial banks in the United States 27,837 25,808 20,272 5,536 2,029 65 Other depository institutions in the United States 5,086 4,163 3,300 863 923 66 Certified and official checks 19,949 14,927 10,267 4,661 5,021 8,554 8,229 4,412 3,818 325 68 Demand deposits (included in total transaction accounts) 457,868 356,825 279,485 77,340 101,043 69 Individuals, partnerships, and corporations 376,721 288,641 228,870 59,772 88,080 70 U.S. government 4,586 3,529 2,991 538 1,057 71 States and political subdivisions in the United States 15,142 11,523 9,368 2,155 3,619 72 Commercial banks in the United States 27,836 25,808 20,272 5,536 2,028 73 Other depository institutions in the United States 5,063 4,151 3,289 862 911 74 Certified and official checks 19,949 14,927 10,267 4,661 5,021 75 All other 8,551 8,228 4,411 3,816 324 76 Total nontransaction accounts 1,559,276 1,106,265 907,491 198,774 453,011 77 Individuals, partnerships, and corporations 1,464,578 1,042,742 854,903 187,839 421,836 78 U.S. government 1,261 1,049 1,001 47 213 79 States and political subdivisions in the United States 79,645 52,268 43,570 8,698 27,377 80 Commercial banks in the United States 8,302 6,262 4,443 1,819 2,039 81 Other depository institutions in the United States 3,671 2,575 2,430 146 1,095 Digitized for FRA8S2 ERA ll other 11,,112277 770077 448822 222255 421 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.22—Continued Members NNoonn-- IItteemm TToottaall mmeemmbbeerrss Total National State 83 Federal funds purchased and securities sold under agreements to repurchase12 273,617 238,338 184,610 53,729 35,278 84 Federal funds purchased 34,429 27,374 23,378 3,995 7,055 85 Securities sold under agreements to repurchase 30,548 15,332 12,707 2,625 15,216 86 Demand notes issued to the U.S. Treasury 20,933 18,705 14,505 4,200 2,228 87 Other borrowed money 86,100 68,239 58,127 10,112 17,861 88 Banks liability on acceptances executed and outstanding 21,980 20,802 16,144 4,658 1,177 89 Notes and debentures subordinated to deposits 3,042 2,016 1,899 117 1,026 90 Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs 19,087 16,113 14,535 1,578 2,975 91 Remaining liabilities 95,603 81,180 58,358 22,822 14,423 92 Total equity capital9 204,196 143,992 114,293 29,699 60,204 MEMO 93 Assets held in trading accounts13 23,349 22,601 14,224 8,378 748 94 U.S. Treasury securities 11,393 11,328 5,635 5,693 65 95 U.S. government agency corporation obligations 2,373 2,363 2,186 177 10 96 Securities issued by states and political subdivisions in the United States 1,465 1,446 1,063 383 19 97 Other bonds, notes, and debentures 810 810 790 19 0 98 Certificates of deposit 524 523 221 303 0 99 Commercial paper 70 64 64 0 6 100 Bankers acceptances 2,190 2,149 1,275 874 40 101 Other 3,558 3,489 2,588 902 69 102 Total individual retirement accounts (IRA) and Keogh plan accounts 110,614 79,499 65,759 13,740 31,115 103 Total brokered deposits 64,429 44,910 38,304 6,606 19,519 104 Total brokered retail deposits 24,424 14,456 11,550 2,906 9,968 105 Issued in denominations of $100,000 or less 9,488 5,397 4,881 516 4,091 106 Issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less 16,462 10,547 8,155 2,392 5,915 Savings deposits 107 Money market deposit accounts (MMDAs) 353,734 269,216 222,295 46,921 84,519 108 Other savings deposits 185,860 132,685 99,828 32,857 53,175 109 Total time deposits of less than $100,000 625,088 416,402 348,496 67,906 208,686 110 Time certificates of deposit of $100,000 or more 356,461 255,768 216,176 39,592 100,693 Ill Open-account time deposits of $100,000 or more 38,132 32,193 20,695 11,498 5,939 112 All NOW accounts (including Super NOW) 201,052 140,468 117,889 22,579 60,583 113 Total time and savings deposits 1,765,480 1,249,711 1,028,080 221,632 515,768 Quarterly averages 11,,778899,,660077 11,,334422,,445566 11,,110022,,224477 224400,,220099 444477,,115511 115 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized transfer accounts) 197,461 137,438 114,493 22,946 60,023 Nontransaction accounts 116 Money market deposit accounts (MMDAs) 347,087 263,298 216,575 46,723 83,789 117 Other savings deposits 184,049 131,118 99,298 31,820 52,930 118 Time certificates of deposit of $100,000 or more 356,706 257,099 217,633 39,466 99,608 119 All other time deposits 655,409 442,512 365,655 76,856 212,898 120 Number of banks 12,688 5,207 4,174 1,033 7,481 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 repotted 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

All Special Tables • June 1990 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 19891 Millions of dollars All states2 New York California Illinois IItteemm in I c T B l o u F t d a ' i s l n g I o B n F ly ' s in I c T B l o u F t d a ' i s l n g I o B n F ly ' s in I c T B l o u F t d a ' i s l n g I o B n F ly ' s in I c T B l o u F t d a ' i s l n g I o B n F ly ' 3 s 1 Total assets4 513,527 247,613 376,258 193,962 74,703 33,655 36,749 12,851 2 Claims on nonrelated parties 464,239 198,810 341,542 157,451 67,626 26,203 36,316 11,935 i Cash and balances due from depository institutions 120,387 110011,,998888 9999,,118800 8833,,885500 1100,,881111 1100,,001122 88,,995566 77,,339922 4 Cash items in process of collection and unposted debits 721 0 682 0 20 0 8 0 5 Currency and coin (U.S. and foreign) 29 n.a. 21 n.a. 2 n.a. 2 n.a. 6 Balances with depository institutions in United States .. 62,272 4466,,225599 5500,,446644 3377,,113344 55,,882244 55,,113333 55,,332299 33,,887733 7 U.S. branches and agencies of other foreign banks (including their IBFs) 54,315 43,659 44,012 3344,,774488 55,,330099 55,,000033 44,,556688 33,,881100 8 Other depository institutions in United States (including their IBFs) 7,957 2,601 6,452 22,,338866 514 130 761 63 9 Balances with banks in foreign countries and with foreign central banks 56,448 55,729 47,329 46,715 4,885 4,879 3,535 3,519 10 Foreign branches of U.S. banks 1,346 11,,229999 11,,114444 11,,110011 130 129 40 40 11 Other banks in foreign countries and foreign central banks 55,102 54,430 46,185 45,614 4,756 4,750 3,495 3,479 12 Balances with Federal Reserve Banks 918 n.a. 684 n.a. 81 n.a. 83 n.a. 13 Total securities and loans 277,008 88,837 188,177 67,514 47,349 14,876 25,239 4,118 14 Total securities, book value 33,861 10,029 27,590 7,638 4,132 1,755 1,288 470 15 U.S. Treasury 5,875 n.a. 5,500 n.a. 149 n.a. 156 n.a. 16 Obligations of U.S. government agencies and corporations 4,707 n.a. 4,653 n.a. 49 n.a. 0 n.a. 17 Other bonds, notes, debentures and corporate stock (including state and local securities) 23,279 10,029 17,436 7,638 3,934 1,755 1,131 470 18 Federal funds sold and securities purchased under agreements to resell 19,344 1,506 17,111 1,050 1,174 235 674 120 19 U.S. branches and agencies of other foreign banks 11,392 912 9,545 523 1,017 230 600 100 20 Commercial banks in United States 5,452 48 5,162 31 123 5 64 10 21 Other 2,500 545 2,403 495 33 0 10 10 22 Total loans, gross 243,392 78,841 160,761 59,906 43,267 13,123 23,964 33,,664499 23 Less: Unearned income on loans 244 34 175 30 49 3 13 11 24 Equals: Loans, net 243,148 78,807 160,587 59,876 43,217 13,120 23,952 3,648 Total loans, gross, by category 25 Real estate loans 22,110 258 11,719 216 5,397 31 2,830 0 26 Loans to depository institutions 65,914 43,991 47,124 29,773 12,780 9,802 4,409 3,186 27 Commercial banks in United States (including IBFs) 36,362 16,743 25,403 10,088 7,560 4,671 3,021 1,810 28 U.S. branches and agencies of other foreign banks ... 33,212 16,115 22,702 9,627 7,196 4,505 2,986 11,,880099 29 Other commercial banks in United States 3,150 628 22,,770000 462 364 166 34 11 30 Other depository institutions in United States (including IBFs) 112 4 62 4 50 0 0 0 31 Banks in foreign countries 29,441 27,244 21,659 19,681 5,170 5,130 1,389 1,376 32 Foreign branches of U.S. banks 647 541 579 477 52 52 11 11 33 Other banks in foreign countries 28,794 26,703 21,079 19,204 5,118 5,078 1,377 1,365 34 Other financial institutions 6,382 495 4,197 339 850 90 652 40 35 Commercial and industrial loans 124,757 17,649 76,832 14,866 22,270 2,166 15,706 294 36 U.S. addressees (domicile) 103,069 236 59,721 183 19,351 47 15,236 6 37 Non-U.S. addressees (domicile) 21,688 17,413 17,111 14,683 2,918 2,119 469 288 38 Acceptances of other banks 827 18 668 14 121 0 14 4 39 U.S. banks 221 0 175 0 34 0 0 0 40 Foreign banks 606 18 493 14 88 0 14 4 41 Loans to foreign governments and official institutions (including foreign central banks) 18,284 16,191 16,276 14,471 1,087 11,,003344 144 125 42 Loans for purchasing or carrying securities (secured and unsecured) 2,954 59 2,217 54 685 0 1 0 43 All other loans 2,164 180 1,729 173 77 0 208 0 44 All other assets 47,500 6,480 37,074 5,037 8,292 1,080 1,447 304 45 Customers' liability on acceptances outstanding 30,121 n.a. 23,268 n.a. 5,933 n.a. 635 n.a. 46 U.S. addressees (domicile) 19,301 n.a. 13,004 n.a. 5,611 n.a. 629 n.a. 47 Non-U.S. addressees (domicile) 10,819 n.a. 10,264 n.a. 321 n.a. 6 n.a. 48 Other assets including other claims on nonrelated parties 17,380 6,480 13,806 5,037 2,359 1,080 812 304 49 Net due from related depository institutions 49,288 48,802 34,716 3366,,551111 77,,007777 77,,445522 433 916 50 Net due from head office and other related depository institutions 49,288 n.a. 34,716 n.a. 77,,007777 n.a. 433 n.a. 51 Net due from establishing entity, head offices, and other related depository institutions n.a. 48,802 n.a. 36,511 n.a. 7,452 n.a. 916 52 Total liabilities4 513,527 247,613 376,258 193,962 74,703 33,655 36,749 12,851 53 Liabilities to nonrelated parties 440,389 218,560 336,201 172,952 67,653 31,134 20,717 7,750 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 4.30—Continued Millions of dollars All states2 New York California Illinois IItteemm ex I T c B l o u F t d a ' i s l n g I o B n F ly ' s ex I T c B l o u F t d a ' i s l n g I o B n F ly ' 3 s ex I T c B l o u F t d a ' i s l n g I o B n F ly ' s ex I T c B l o u F t d a ' i s l n g I o B n F ly ' s 54 Total deposits and credit balances 67,765 173,269 54,882 151,877 2,467 12,061 3,648 3,807 55 Individuals, partnerships, and corporations 54,618 14,311 42,966 9,414 2,187 316 2,971 48 56 U.S. addressees (domicile) 41,963 456 35,063 442 625 0 2,167 13 57 Non-U.S. addressees (domicile) 12,655 13,855 7,903 8,972 1,562 316 804 33 58 Commercial banks in United States (including IBFs)... 8,673 55,502 7,829 47,343 160 5,673 651 2,117 59 U.S. branches and agencies of other foreign banks .. 3,315 49,077 2,727 41,800 11 5,071 557 1,890 60 Other commercial banks in United States 5,358 6,425 5,102 5,543 150 602 94 227 61 Banks in foreign countries 1,736 95,477 1,602 87,404 41 5,970 3 1,623 62 Foreign branches of U.S. banks 216 7,899 196 6,509 20 1,053 0 236 63 Other banks in foreign countries 1,520 87,578 1,407 80,895 21 4,917 3 1,387 64 Foreign governments and official institutions (including foreign central banks) 1,099 7,748 963 7,485 19 101 2 1199 65 All other deposits and credit balances 918 231 876 231 29 0 2 0 66 Certified and official checks 722 n.a. 645 n.a. 31 n.a. 19 n. a. 67 Transaction accounts and credit balances (excluding IBFs) 6,831 5,654 258 224 68 Individuals, partnerships, and corporations 4,325 3,409 212 199 69 U.S. addressees (domicile) 2,973 2,418 168 195 70 Non-U.S. addressees (domicile) 1,352 991 45 4 71 Commercial banks in United States (including IBFs)... 239 234 1 0 72 U.S. branches and agencies of other foreign banks .. 91 91 0 0 73 Other commercial banks in United States 148 n.a. 143 n.a. 1 n.a. 0 n.a. 74 Banks in foreign countries 814 746 11 3 75 Foreign branches of U.S. banks 30 30 0 0 76 Other banks in foreign countries 784 715 11 2 77 Foreign governments and official institutions (including foreign central banks) 445 346 2 2 78 All other deposits and credit balances 285 274 1 2 79 Certified and official checks 722 645 31 19 80 Demand deposits (included in transaction accounts and credit balances) 5,826 4,914 179 208 81 Individuals, partnerships, and corporations 3,694 3,026 135 183 82 U.S. addressees (domicile) 2,574 2,176 107 179 83 Non-U.S. addressees (domicile) 1,120 850 28 4 84 Commercial banks in United States (including IBF)s... 80 76 1 0 85 U.S. branches and agencies of other foreign banks .. 22 22 0 0 86 Other commercial banks in United States 57 n.a. 54 n.a. 1 n a. 0 n. a. 87 Banks in foreign countries 699 637 11 3 88 Foreign branches of U.S. banks 30 30 0 0 89 Other banks in foreign countries 668 607 11 2 90 Foreign governments and official institutions (including foreign central banks) 406 309 2 2 91 All other deposits and credit balances 226 220 0 2 92 Certified and official checks 722 645 31 19 93 Non-transaction accounts (including MMDAs, excluding IBFs) 60,934 49,228 2,209 3,424 94 Individuals, partnerships, and corporations 50,293 39,557 1,974 2,773 95 U.S. addressees (domicile) 38,990 32,645 457 1,972 96 Non-U.S. addressees (domicile) 11,303 6,913 1,517 800 97 Commercial banks in United States (including IBFs)... 8,434 7,596 159 651 98 U.S. branches and agencies of other foreign banks .. 3,223 2,636 11 557 99 Other commercial banks in United States 5,210 n. a. 4,959 n.a. 148 n. a. 94 n.a. 100 Banks in foreign countries 922 857 30 0 101 Foreign branches of U.S. banks 185 163 20 0 102 Other banks in foreign countries 736 691 10 0 103 Foreign governments and official institutions (including foreign central banks) 653 617 18 0 104 All other deposits and credit balances 632 602 28 1 105 IBF deposit liabilities 173,269 151,877 12,061 3,807 106 Individuals, partnerships, and corporations 14,311 9,414 316 48 107 U.S. addressees (domicile) 456 442 0 13 108 Non-U.S. addressees (domicile) 13,855 8,972 316 35 109 Commercial banks in United States (including IBFs)... 55,502 47,343 5,673 2,117 110 U.S. branches and agencies of other foreign banks .. 49,077 41,800 5,071 1,890 111 Other commercial banks in United States n.a. 6,425 n. a. 5,543 n.a. 602 n.a. 227 112 Banks in foreign countries 95,477 87,404 5,970 1,623 113 Foreign branches of U.S. banks 7,899 6,509 1,053 236 114 Other banks in foreign countries 87,578 80,895 4,917 1,387 115 Foreign governments and official institutions (including foreign central banks) 7,748 7,485 101 19 116 All other deposits and credit balances 231 231 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • June 1990 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1989'—Continued Millions of dollars All states2 New York California Illinois IItteemm in I T c B l o u F t d a ' i s l n g I o B n F ly ' s in I T c B l o u F t d a ' i s l n g I o B n F ly ' 3 s in I T c B l o u F t d a ' i s l n g I o B n F ly ' 3 s in I T c B l o u F t d a ' i s l n g I o B n F ly ' s 117 Federal funds purchased and securities sold under agreements to repurchase 46,373 4,500 34,576 2,135 8,725 2,121 2,533 45 118 U.S. branches and agencies of other foreign banks .... 11,985 1,709 7,921 386 3,430 1,271 407 0 119 Other commercial banks in United States 13,698 406 8,244 62 3,558 342 1,778 0 120 Other 20,690 2,385 18,410 1,<> 88 1,737 508 348 45 121 Other borrowed money 105,147 35,033 58,387 14,445 35,044 16,004 9,408 3,660 122 Owed to nonrelated commercial banks in United States (including IBFs) 65,061 13,597 34,435 2,992 23,531 8,802 5,362 1,236 123 Owed to U.S. offices of nonrelated U.S. banks 28,502 2,470 17,401 68 7,601 1,332 2,792 81 124 Owed to U.S. branches and agencies of nonrelated foreign banks 36,559 11,127 17,035 2,124 15,930 7,470 2,570 1,155 125 Owed to nonrelated banks in foreign countries 19,361 18, <68 9,388 8,977 7,121 7,111 2,445 2,424 126 Owed to foreign branches of nonrelated U.S. banks ... 2,335 2,218 760 655 1,228 1,228 219 209 127 Owed to foreign offices of nonrelated foreign banks.... 17,026 16,650 8,628 8,321 5,893 5,883 2,225 2,215 128 Owed to others 20,725 2,568 14,564 2,476 4,393 91 1,601 0 129 All other liabilites 47,836 5,758 36,478 4,494 9,356 948 1,320 237 130 Branch or agency liability on acceptances executed and outstanding 33,467 n.a. 24,922 n.a. 7,328 n.a. 779 n. a. 131 Other liabilities to nonrelated parties 14,369 5,758 11,556 4,494 2,028 948 542 237 132 Net due to related depository institutions5 73,138 29,053 40,057 21,011 7,050 2,522 16,032 5,101 133 Net due to head office and other related depository institutions5 73,138 n. a. 40,057 n. a. 7,050 n. a. 16,032 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 29,053 n.a. 21,011 n.a. 2,522 n.a. 5,101 MEMO 135 Non-interest bearing balances with commercial banks in United States 2,136 16 1,871 15 128 0 74 0 136 Holding of commercial paper included in total loans 864 556 232 76 137 Holding of own acceptances included in commercial and industrial loans 2,594 1,584 708 165 138 Commercial and industrial loans with remaining maturity of one year or less 64,811 36,205 12,654 9,493 139 Predetermined interest rates 40,430 n. a. 21,348 n.a. 9,411 n. a. 5,426 n.a. 140 Floating interest rates 24,381 14,857 3,244 4,067 141 Commercial and industrial loans with remaining maturity of more than one year 59,945 40,627 9,616 6,213 142 Predetermined interest rates 21,029 15,415 3,418 1,783 143 Floating interest rates 38,917 25,212 6,198 4,430 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30—Continued Millions of dollars All states2 New York California Illinois IItteemm ex T c I l B o u t F d a s i l n g o IB nl F y s exc T I l B o u t F d a s i l n g o IB nl F y s exc T I l B o u t F d a s i l n g o IB nl F y s ex T c I l B o u t F d a s i l n g o IB nl F y s 111144444444 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ooooffff nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnnaaaallll aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss 77,853 n.a. 65,988 n.a. 2,163 n.a. 3,785 n.a. 111144445555 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 44,997 n.a. 36,915 n.a. 1,291 n.a. 2,029 n.a. 111144446666 OOOOtttthhhheeeerrrr ttttiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 11,510 n.a. 9,504 n.a. 650 n.a. 1,167 n.a. 111144447777 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss ........ 21,346 n.a. 19,568 n.a. 222 n.a. 589 n.a. All states2 New York California Illinois Total IBFs Total IBFs Total IBFs Total IBFs inc I l B u F d s in g only inc I l B u F d s in g only inc I l B u F d s in g only inc I l B u F d s in g only 111144448888 MMMMaaaarrrrkkkkeeeetttt vvvvaaaalllluuuueeee ooooffff sssseeeeccccuuuurrrriiiittttiiiieeeessss hhhheeeelllldddd 31,611 9,595 25,672 7,322 3,827 1,643 1,269 466 111144449999 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 62,003 n.a. 32,448 n.a. 24,412 n.a. 3,814 n.a. 111155550000 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 517 0 238 0 124 0 54 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, that no IBF data re reported for that item, either because the item is not an eligible "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign IBF asset or liability or because that level of detail is not reported for IBFs. From Banks." Details may not add to totals because of rounding. This form was first December 1981 through September 1985, IBF data were included in all applicable used for reporting data as of June 30, 1980, and was revised as of December 31, items reported. 1985. From November 1972 through May 1980, U.S. branches and agencies of 4. Total assets and total liabilities include net balances, if any, due from or due foreign banks had filed a monthly FR 886a report. Aggregate data from that report to related banking institutions in the United States and in foreign countries (see were available through the Federal Reserve statistical release G. 11, last issued on footnote 5). On the former monthly branch and agencyu report, available through July 10, 1980. Data in this table and in the G.ll tables are not strictly comparable the G.ll statistical release, gross balances were included in total assets and total because of differences in reporting panels and in definitions of balance sheet liabilities. Therefopre, total asset and total liability figures in this table are not items. comparable to those in the G.ll tables. 2. Includes the District of Columbia. 5. "Related banking institutions" includes the foreign head office and other 3. Effective December 1981, the Federal Reserve Board amended Regulations U.S. and foreign branches and agencies of the bank, the bank's parent holding D and Q to permit banking offices located in the United States to operate company, and majority-owned banking subsidiaries of the bank and of its parent International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs holding company (including subsidiaries owned both directly and indirectly). are reported in a separate column. These data are either included in or excluded 6. In some cases two or more offices of a foreign bank within the same from the total columns as indicated in the headings. The notation "n.a." indicates metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Board of Governors ALAN GREENSPAN, Chairman MARTHA R. SEGER MANUEL H. JOHNSON, Vice Chairman WAYNE D. ANGELL OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE JOSEPH R. COYNE, Assistant to the Board EDWIN M. TRUMAN, Staff Director DONALD J. WINN, Assistant to the Board LARRY J. PROMISEL, Senior Associate Director BOB STAHLY MOORE, Special Assistant to the Board CHARLES J. SIEGMAN, Senior Associate Director DAVID H. HOWARD, Deputy Associate Director ROBERT F. GEMMILL, Staff Adviser LEGAL DIVISION DONALD B. ADAMS, Assistant Director DALE W. HENDERSON, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel PETER HOOPER III, Assistant Director RICHARD M. ASHTON, Associate General Counsel KAREN H. JOHNSON, Assistant Director OLIVER IRELAND, Associate General Counsel RALPH W. SMITH, JR., Assistant Director RICKI R. TIGERT, Associate General Counsel SCOTT G. ALVAREZ, Assistant General Counsel DIVISION OF RESEARCH AND STATISTICS 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 WILLIAM W. WILES, Secretary DAVID J. STOCKTON, Associate Director JENNIFER J. JOHNSON, Associate Secretary MARTHA BETHEA, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary PETER A. TINSLEY, Deputy Associate Director MYRON L. KWAST, Assistant Director PATRICK M. PARKINSON, Assistant Director DIVISION OF CONSUMER MARTHA S. SCANLON, Assistant Director AND COMMUNITY AFFAIRS JOYCE K. ZICKLER, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) GRIFFITH L. GARWOOD, Director GLENN E. LONEY, Assistant Director ELLEN MALAND, Assistant Director DIVISION OF MONETARY AFFAIRS DOLORES S. SMITH, Assistant Director DONALD L. KOHN, Director DAVID E. LINDSEY, Deputy Director DIVISION OF BANKING BRIAN F. MADIGAN, Assistant Director SUPERVISION AND REGULATION RICHARD D. PORTER, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM TAYLOR, Staff Director DON E. KLINE, Associate Director FREDERICK M. STRUBLE, Associate Director OFFICE OF THE INSPECTOR GENERAL WILLIAM A. RYBACK, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Associate Director BRENT L. BOWEN, Inspector General RICHARD SPILLENKOTHEN, Deputy Associate Director BARRY R. SNYDER, Assistant Inspector General 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

A83 and Official Staff EDWARD W. KELLEY, JR. JOHN P. LA WARE OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES E S. D D W A A V R I D D T F . R O M S U T L , R S E ta N f I f N, D A ir s e s c is to ta r n t Staff Director THEODORE E. ALLISON, Staff Director WILLIAM SCHNEIDER, Special Assignment: Project Director, National Information Center DIVISION OF FEDERAL RESERVE PORTIA W. THOMPSON, Equal Employment Opportunity BANK OPERATIONS Programs Officer DIVISION OF HUMAN RESOURCES CLYDE H. FARNSWORTH, JR., Director MANAGEMENT DAVID L. ROBINSON, Associate Director C. WILLIAM SCHLEICHER, JR., Associate Director DAVID L. SHANNON, Director BRUCE J. SUMMERS, Associate Director JOHN R. WEIS, Associate Director CHARLES W. BENNETT, Assistant Director ANTHONY V. DIGIOIA, Assistant Director JACK DENNIS, JR., Assistant Director JOSEPH H. HAYES, JR., Assistant Director EARL G. HAMILTON, Assistant Director FRED HOROWITZ, Assistant Director JOHN H. PARRISH, Assistant Director LOUISE L. ROSEMAN, Assistant Director OFFICE OF THE CONTROLLER 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 MARIANNE M. EMERSON, Assistant Director DIVISION OF HARDWARE AND SOFTWARE SYSTEMS BRUCE M. BEARDSLEY, Director DAY W. RADEBAUGH, JR., Assistant Director ELIZABETH B. RIGGS, Assistant Director DIVISION OF APPLICATIONS DEVELOPMENT AND STATISTICAL SERVICES WILLIAM R. JONES, Director ROBERT J. ZEMEL, Associate Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director RICHARD C. STEVENS, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • June 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 RICHARD W. LANG, Associate Economist NORMAND R.V. BERNARD, Assistant Secretary DAVID E. LINDSEY, Associate Economist GARY P. GILLUM, Deputy Assistant Secretary LARRY J. PROMISEL, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel ARTHUR J. ROLNICK, Associate Economist ERNEST T. PATRIKIS, Deputy General Counsel HARVEY ROSENBLUM, Associate Economist MICHAEL J. PRELL, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist THOMAS D. SIMPSON, Associate Economist JOHN M. DAVIS, Associate Economist DAVID J. STOCKTON, 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 THOMAS H. O'BRIEN, President PAUL HAZEN, Vice President IRA STEPANIAN, First District B. KENNETH WEST, Seventh District WILLARD C. BUTCHER, Second District DAN W. MITCHELL, Eighth District TERRENCE A. LARSEN, Third District LLOYD P. JOHNSON, Ninth District THOMAS H. O'BRIEN, Fourth District JORDAN L. HAINES, Tenth District FREDERICK DEANE, JR., Fifth District RONALD G. STEINHART, Eleventh District KENNETH L. ROBERTS, Sixth District PAUL HAZEN, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 and Advisory Councils CONSUMER ADVISORY COUNCIL WILLIAM E. ODOM, Dearborn, Michigan, Chairman JAMES W. HEAD, Berkeley, California, Vice Chairman GEORGE H. BRAASCH, Oakbrook, Illinois KATHLEEN E. KEEST, Boston, Massachusetts BETTY TOM CHU, Arcadia, California A. J. (JACK) KING, Kalispell, Montana CLIFF E. COOK, Tacoma, Washington COLLEEN D. MCCARTHY, Kansas City, Missouri JERRY D. CRAFT, Atlanta, Georgia MICHELLE S. MEIER, Washington, D.C. DONALD C. DAY, Boston, Massachusetts LINDA K. PAGE, Worthington, Ohio R.B. (JOE) DEAN, JR., Columbia, South Carolina BERNARD F. PARKER, JR., Detroit, Michigan WILLIAM C. DUNKELBERG, Philadelphia, Pennsylvania SANDRA PHILLIPS, Pittsburgh, Pennsylvania JAMES FLETCHER, Chicago, Illinois VINCENT P. QUAYLE, Baltimore, Maryland GEORGE C. GALSTER, Wooster, Ohio CLIFFORD N. ROSENTHAL, New York, New York E. THOMAS GARMAN, Blacksburg, Virginia ALAN M. SILBERSTEIN, New York, New York DEBORAH B. GOLDBERG, Washington, D.C. RALPH E. SPURGIN, Columbus, Ohio MICHAEL M. GREENFIELD, St. Louis, Missouri NANCY HARVEY STEORTS, Dallas, Texas ROBERT A. HESS, Washington, D.C. DAVID P. WARD, Chester, New Jersey BARBARA KAUFMAN, San Francisco, California LAWRENCE WINTHROP, Portland, Oregon THRIFT INSTITUTIONS ADVISORY COUNCIL DONALD B. SHACKELFORD, Columbus, Ohio, President MARION O. SANDLER, Oakland, California, Vice President CHARLOTTE CHAMBERLAIN, Los Angeles, California ELLIOT K. KNUTSON, Seattle, Washington DAVID L. HATFIELD, Kalamazoo, Michigan JOHN WM. LAISLE, Oklahoma City, Oklahoma LYNN W. HODGE, Greenwood, South Carolina PHILIP E. LAMB, Springfield, Massachusetts ADAM A. JAHNS, Chicago, Illinois JOHN A. PANCETTI, New York, New York H. C. KLEIN, Jacksonville, Arkansas CHARLES B. STUZIN, Miami, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SER- Federal Reserve Regulatory Service, $250.00 per year. VICES, MS-138, Board of Governors of the Federal Reserve Each Handbook, $90.00 per year. System, Washington, D.C. 20551 or telephone (202) 452- THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A 3244. When a charge is indicated, payment should accom- MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. pany request and be made payable to the Board of Governors WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp. of the Federal Reserve System. Payment from foreign resi- INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. dents should be drawn on a U.S. bank. 440 pp. $9.00 each. FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- December 1986. 264 pp. $10.00 each. TIONS. 1984. 120 pp. ANNUAL REPORT. ANNUAL REPORT: BUDGET REVIEW, 1988-89. FEDERAL RESERVE BULLETIN.Monthly. $25.00 per year or CONSUMER EDUCATION PAMPHLETS $2.50 each in the United States, its possessions, Can- Short pamphlets suitable for classroom use. Multiple copies ada, and Mexico. Elsewhere, $35.00 per year or $3.00 are available without charge. each. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint Consumer Handbook on Adjustable Rate Mortgages of Part I only) 1976. 682 pp. $5.00. Consumer Handbook to Credit Protection Laws ANNUAL STATISTICAL DIGEST Federal Reserve Glossary 1974-78. 1980. 305 pp. $10.00 per copy. A Guide to Business Credit and the Equal Credit Opportunity 1981. 1982. 239 pp. $ 6.50 per copy. Act 1982. 1983. 266 pp. $ 7.50 per copy. How to File A Consumer Credit Complaint 1983. 1984. 264 pp. $11.50 per copy. Series on the Structure of the Federal Reserve System 1984. 1985. 254 pp. $12.50 per copy. The Board of Governors of the Federal Reserve System 1985. 1986. 231 pp. $15.00 per copy. The Federal Open Market Committee 1986. 1987. 288 pp. $15.00 per copy. Federal Reserve Bank Board of Directors 1987. 1988. 272 pp. $15.00 per copy. Federal Reserve Banks 1988. 1989. 256 pp. $25.00 per copy. Organization and Advisory Committees A Consumer's Guide to Mortgage Lock-Ins SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- RIES OF CHARTS. Weekly. $30.00 per year or $.70 each in A Consumer's Guide to Mortgage Settlement Costs the United States, its possessions, Canada, and Mexico. A Consumer's Guide to Mortgage Refinancing Elsewhere, $35.00 per year or $.80 each. Making Deposits: When Will Your Money Be Available? THE FEDERAL RESERVE ACT and other statutory provisions When Your Home is on the Line: What You Should Know affecting the Federal Reserve System, as amended About Home Equity Lines of Credit through August 1988. 608 pp. $10.00. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- ERAL RESERVE SYSTEM. ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— PAMPHLETS FOR FINANCIAL INSTITUTIONS Regulation Z) Vol. I (Regular Transactions). 1969. 100 Short pamphlets on regulatory compliance, primarily suitpp. Vol. II (Irregular Transactions). 1969. 116 pp. Each able for banks, bank holding companies, and creditors. volume $2.25; 10 or more of same volume to one address, $2.00 each. Limit of 50 copies INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; 10 or more to one address, $1.25 each. The Board of Directors' Opportunities in Community Rein- FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; up- vestment dated at least monthly. (Requests must be prepaid.) The Board of Directors' Role in Consumer Law Compliance Consumer and Community Affairs Handbook. $75.00 per Combined Construction/Permanent Loan Disclosure and year. Regulation Z Monetary Policy and Reserve Requirements Handbook. Community Development Corporations and the Federal Re- $75.00 per year. serve Securities Credit Transactions Handbook. $75.00 per year. Construction Loan Disclosures and Regulation Z The Payment System Handbook. $75.00 per year. Finance Charges Under Regulation Z Federal Reserve Regulatory Service. 3 vols. (Contains all How to Determine the Credit Needs of Your Community three Handbooks plus substantial additional material.) Regulation Z: The Right of Rescission $200.00 per year. The Right to Financial Privacy Act Rates for subscribers outside the United States are as Signature Rules in Community Property States: Regulation B follows and include additional air mail costs: Signature Rules: Regulation B Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 Timing Requirements for Adverse Action Notices: Regula- 157. M2 PER UNIT OF POTENTIAL GNP AS AN ANCHOR FOR tion B THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D. What An Adverse Action Notice Must Contain: Regulation B Porter, and David H. Small. April 1989. 28 pp. Understanding Prepaid Finance Charges: Regulation Z 158. THE ADEQUACY AND CONSISTENCY OF MARGIN RE- QUIREMENTS IN THE MARKETS FOR STOCKS AND DERIV- ATIVE PRODUCTS, by Mark J. Warshawsky with the assistance of Dietrich Earnhart. September 1989. 23 pp. STAFF STUDIES: Summaries Only Printed in the Bulletin Studies and papers on economic and financial subjects that REPRINTS OF BULLETIN ARTICLES are of general interest. Requests to obtain single copies of Most of the articles reprinted do not exceed 12 pages. the full text or to be added to the mailing list for the series 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 146. THE ROLE OF THE PRIME RATE IN THE PRICING OF Ten Staff Studies. 11/83. BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by A Financial Perspective on Agriculture. 1/84. Thomas F. Brady. November 1985. 25 pp. Survey of Consumer Finances, 1983. 9/84. 147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) IN- Bank Lending to Developing Countries. 10/84. DEXES OF THE MONETARY AGGREGATES, by Helen T. Survey of Consumer Finances, 1983: A Second Report. Farr and Deborah Johnson. December 1985. 42 pp. 12/84. 148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE Union Settlements and Aggregate Wage Behavior in the ECONOMIC RECOVERY TAX ACT: SOME SIMULATION 1980s. 12/84. RESULTS, by Flint Brayton and Peter B. Clark. Decem- The Thrift Industry in Transition. 3/85. ber 1985. 17 pp. A Revision of the Index of Industrial Production. 7/85. 149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN Financial Innovation and Deregulation in Foreign Industrial BANKING BEFORE AND AFTER ACQUISITION, by Stephen Countries. 10/85. A. Rhoades. April 1986. 32 pp. Recent Developments in the Bankers Acceptance Market. 150. STATISTICAL COST ACCOUNTING MODELS IN BANKING: 1/86. A REEXAMINATION AND AN APPLICATION, by John T. The Use of Cash and Transaction Accounts by American Rose and John D. Wolken. May 1986. 13 pp. Families. 2/86. 151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRIC- Financial Characteristics of High-Income Families. 3/86. ING FROM 1983 through 1985, by Patrick I. Mahoney, Prices, Profit Margins, and Exchange Rates. 6/86. 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 152. DETERMINANTS OF CORPORATE MERGER ACTIVITY: A U.S. Statistics. 10/86. 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. 154. THE EFFECTS ON CONSUMERS AND CREDITORS OF PRO- Home Equity Lines of Credit. 6/88. POSED CEILINGS ON CREDIT CARD INTEREST RATES, by U.S. International Transactions in 1988. 5/89. Glenn B. Canner and James T. Fergus. October 1987. 26 Mutual Recognition: Integration of the Financial Sector in the pp. European Community. 9/89. 155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J. The Activities of Japanese Banks in the United Kingdom and Warshawsky. November 1987. 25 pp. in the United States, 1980-88. 2/90. 156. INTERNATIONAL TRENDS FOR U.S. BANKS AND BANK- Industrial Production: 1989 Developments and Historical ING MARKETS, by James V. Houpt. May 1988. 47 pp. Revision. 4/90. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM^ (PAYMENT MUST ACCOMPANY REQUESTS.) Annual Approximate Date of period Weekly Releases rate release days to which data refer • Aggregate Reserves of Depository Institutions and $15.00 Thursday Week ended previous the Monetary Base. H.3 (502) [1.20] Wednesday • Actions of the Board: Applications and Reports $35.00 Friday Received. H.2 (501) Week ended previous Saturday • Assets and Liabilities of Insured Domestically $15.00 Monday Chartered and Foreign Related Banking Wednesday, 3 weeks earlier Institutions. H.8 (510) [1.25] • Factors Affecting Reserves of Depository $15.00 Thursday Week ended previous Institutions and Condition Statement of Federal Wednesday Reserve Banks. H.4.1 (503) [1.11] • Foreign Exchange Rates. H. 10 (512) [3.28] $ 15.00 Monday Week ended previous Friday • Money Stock, Liquid Assets, and Debt Measures. $35.00 Thursday Week ended Monday of H.6 (508) [1.21] previous week • Selected Borrowings in Immediately Available $15.00 Wednesda Week ended Thursday of Funds of Large Member Banks. H.5 (507) [1.13] previous week • Selected Interest Rates. H.15 (519) [1.35] $15.00 Monday Week ended previous Saturday • Weekly Consolidated Condition Report of Large $15.00 Friday Wednesday, 1 week earlier Commercial Banks, and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.28, 1.29, 1.30] Monthly Releases • Consumer Installment Credit. G.19 (421) [1.55, $ 5.00 5th working day of 2nd month previous 1.56] month • Debits and Deposit Turnover at Commercial Banks. $ 5.00 12th of month Previous month G.6 (406) [1.22] • Finance Companies. G.20 (422) [1.51, 1.52] $ 5.00 5th working day of 2nd month previous month • Foreign Exchange Rates. G.5 (405) [3.28] $ 5.00 1st of month Previous month • Industrial Production/Capacity Utilization G.17 $15.00 Previous month Midmonth (419) [2.12, 2.13] • Loans and Securities at all Commercial Banks. G.7 $ 5.00 Previous month 3rd week of month (407) [1.23] • Major Nondeposit Funds of Commercial Banks. $ 5.00 Previous month 3rd week of month G.10 (411) [1.24] • Monthly Report of Assets and Liabilities of Large $ 5.00 Wednesday, 2 weeks earlier 20th of month International Banking Facilities. G.14 (416) • Research Library—Recent Acquisitions. G.15 (417) Free of Previous month 1st of month charge • Selected Interest Rates. G.13 (415) [1.35] $ 5.00 3rd working day of Previous month month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The respective Bulletin tables that report the data are designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 Annual Approximate Date of period Quarterly Releases rate release days to which data refer • Agricultural Finance Databook. E.15 (125) $ 5.00 End of March, January, April, July, and June, September, October and December • Country Exposure Lending Survey. E. 16 (126) $ 5.00 January, April, Previous 3 months July, and October • Flow of Funds: Seasonally Adjusted and $15.00 23rd of February, Previous quarter Unadjusted. Z.l (780) [1.58, 1.59] May, August, and November • Flow of Funds Summary Statistics Z.7 (788) [1.57, $ 5.00 15th of February, Previous quarter 1.58] May, August, and November • Geographical Distribution of Assets and Liabilities $ 5.00 15th of March, Previous quarter of Major Foreign Branches of U.S. Banks. E.ll June, September, (121) and December • Survey of Terms of Bank Lending to Business. E.2 $ 5.00 Midmonth of February, May, August, and (111) [1-34] March, June, November September, and December • List of OTC Margin Stocks. E.7 (117) $ 5.00 January, April, February, May, August, and July, and November October Semiannual Releases • Balance Sheets of the U.S. Economy. C.9 (108) $ 5.00 October and April Previous year • Report on the Terms of Credit Card Plans. E.5 $ 5.00 March and August January and June (115) Annual Releases • Aggregate Summaries of Annual Surveys of $ 5.00 February End of previous June Securities Credit Extension. C.2 (101) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Index to Statistical Tables References are to pages A3-A81 although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Demand deposits—Continued Agricultural loans, commercial banks, 19, 20 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, 78-81 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, 78-81 Business activity, nonfinancial, 46 Business expenditures on new plant and equipment, 35 FARM mortgage loans, 38 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 9, 10, 11, 31, 32 Federal credit agencies, 33 CAPACITY utilization, 48 Federal finance Capital accounts Debt subject to statutory limitation, and types and Banks, by classes, 18, 73, 75, 77 ownership of gross debt, 30 Federal Reserve Banks, 10 Receipts and outlays, 28, 29 Central banks, discount rates, 69 Treasury financing of surplus, or deficit, 28 Certificates of deposit, 24 Treasury operating balance, 28 Commercial and industrial loans Federal Financing Bank, 28, 33 Commercial banks, 16, 19, 72, 74, 76, 78-79 Federal funds, 6, 17, 19, 20, 21, 24, 28 Weekly reporting banks, 19-21 Federal Home Loan Banks, 33 Commercial banks Federal Home Loan Mortgage Corporation, 33, 37, 38 Assets and liabilities, 18-20, 78-81 Federal Housing Administration, 33, 37, 38 Commercial and industrial loans, 16, 18, 19, 20, 21, 72, Federal Land Banks, 38 74, 76, 78-81 Federal National Mortgage Association, 33, 37, 38 Consumer loans held, by type and terms, 39, 40 Federal Reserve Banks Loans sold outright, 19 Condition statement, 10 Nondeposit funds, 17 Discount rates (See Interest rates) Number by classes, 73, 75, 77 U.S. government securities held, 4, 10, 11, 30 Real estate mortgages held, by holder and property, 38 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 23, 24, 36 Federal Savings and Loan Insurance Corporation insured Condition statements (See Assets and liabilities) institutions, 26 Construction, 46, 51 Federally sponsored credit agencies, 33 Consumer installment credit, 39, 40 Finance companies Consumer prices, 46, 48 Assets and liabilities, 36 Consumption expenditures, 53, 54 Business credit, 36 Corporations Loans, 39, 40 Nonfinancial, assets and liabilities, 35 Paper, 23, 24 Profits and their distribution, 35 Financial institutions Security issues, 34, 67 Loans to, 19, 20, 21 Cost of living (See Consumer prices) Selected assets and liabilities, 26 Credit unions, 27, 39. (See also Thrift institutions) Float, 4 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, 78-81 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

A91 GOLD Financial institutions, 26 Certificate account, 10 Terms, yields, and activity, 37 Stock, 4, 56 Type of holder and property mortgaged, 38 Government National Mortgage Association, 33, 37, 38 Repurchase agreements, 6, 17, 19, 20, 21 Gross national product, 53 Reserve requirements, 8 Reserves HOUSING, new and existing units, 51 Commercial banks, 18 Depository institutions, 3, 4, 5, 12 INCOME, personal and national, 46, 53, 54 Federal Reserve Banks, 10 Industrial production, 46, 49 U.S. reserve assets, 56 Installment loans, 39, 40 Residential mortgage loans, 37 Insurance companies, 26, 30, 38 Retail credit and retail sales, 39, 40, 46 Interest rates Bonds, 24 SAVING Consumer installment credit, 40 Flow of funds, 41, 43, 44, 45 Federal Reserve Banks, 7 National income accounts, 53 Foreign central banks and foreign countries, 69 Savings and loan associations, 26, 38, 39, 41. (See also Money and capital markets, 24 Thrift institutions) Mortgages, 37 Savings banks, 26, 38, 39 Prime rate, 23 Savings deposits (See Time and savings deposits) International capital transactions of United States, 55-69 Securities (See also specific types) International organizations, 59, 60, 62, 65, 66 Federal and federally sponsored credit agencies. 33 Inventories, 53 Foreign transactions, 67 Investment companies, issues and assets, 35 New issues, 34 Investments (See also specific types) Prices, 25 Banks, by classes, 18, 19, 20, 21, 26 Special drawing rights, 4, 10, 55, 56 Commercial banks, 3, 16, 18-20, 38, 72 State and local governments Federal Reserve Banks, 10, 11 Deposits, 19, 20 Financial institutions, 26, 38 Holdings of U.S. government securities, 30 New security issues, 34 LABOR force, 47 Ownership of securities issued by, 19, 20, 26 Life insurance companies {See Insurance companies) Rates on securities, 24 Loans (See also specific types) Stock market, selected statistics, 25 Banks, by classes, 18-20 Stocks (See also Securities) Commercial banks, 3, 16, 18-20, 72, 74, 76 New issues, 34 Federal Reserve Banks, 4, 5, 7, 10, 11 Prices, 25 Financial institutions, 26, 38 Insured or guaranteed by United States, 37, 38 Student Loan Marketing Association, 33 MANUFACTURING TAX receipts, federal, 29 Capacity utilization, 48 Thrift institutions, 3. (See also Credit unions and Savings Production, 48, 50 and loan associations) Margin requirements, 25 Time and savings deposits, 3, 13, 17, 18, 19, 20, 21, Member banks (See also Depository institutions) 73, 75, 77 Federal funds and repurchase agreements, 6 Trade, foreign, 56 Reserve requirements, 8 Treasury cash, Treasury currency, 4 Mining production, 50 Treasury deposits, 4, 10, 28 Mobile homes shipped, 51 Treasury operating balance, 28 Monetary and credit aggregates, 3, 12 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 U.S. government securities Mutual savings banks (See Thrift institutions) Bank holdings, 18-20, 21, 30 Dealer transactions, positions, and financing, 32 NATIONAL defense outlays, 29 Federal Reserve Bank holdings, 4, 10, 11, 30 National income, 53 Foreign and international holdings and transactions, 10, 30, 68 OPEN market transactions, 9 Open market transactions, 9 Outstanding, by type and holder, 26, 30 PERSONAL income, 54 Rates, 24 Prices U.S. international transactions, 55-69 Consumer and producer, 46, 52 Utilities, production, 50 Stock market, 25 Prime rate, 23 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

A92 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 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 James O. Aston 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 Kate Ireland 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 Robert D. Apelgren James T. Curry III Nashville 37203 Victoria B. Jackson Melvyn K. Purcell New Orleans 70161 Andre M. Rubenstein 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 L. Dickson Flake John F. Breen1 Louisville 40232 Raymond M. Burse Howard Wells Memphis 38101 Katherine H. Smythe Ray Laurence MINNEAPOLIS 55480 Michael W. Wright Gary H. Stern Delbert W. Johnson Thomas E. Gainor Helena 59601 J. Frank Gardner John D. Johnson 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 Donald G. Stevens Sammie C. Clay Houston 77252 Andrew L. Jefferson, Jr. Robert Smith, III1 San Antonio 78295 Roger R. Hemminghaus 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. Digitized for FRAS1E. RSe nior Vice President. http://fraser.stlouis2f.e Edx.oecrgut/i ve Vice President. Federal Reserve Bank of St. Louis

A93 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories April 1914 1 <MI.MJ.II. • MHHHl MIIHHHRBHM H MD 1 ALASKA MMII MM MMAA MMMMHH HAWAII MMHHMM IRBlNHi flHNHI © "V, 0 ^X - ! J / » / Y? LEGEND ~~ Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

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. A Consumer"* Quid* to Mortgage Lock-Ins Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis